The global economic crisis has highlighted the role of Asia in the
international arena. In an era where the first priority is economic
potential no matter the conquest among territories, the control of
financial markets should be a constant effort.China and India are the central pillars of the BRIC group (Brazil, Russia, India, China). There are nations like Uzbekistan and Kazakhstan, which are the most important countries of Central Asia in economic terms that have been driven in difficult years with relatively few economic losses. By participating in the Shanghai Cooperation Organization, these countries have set the foundation for a very strong presence in the international scene.
These countries are important to the international markets.
Journalist, Eric Weiner, who served for two years as NPR’s correspondent
in New Delhi, reveals in his book “The Shadow Market”:How Sovereign Wealth Funds Secretly Dominate the Global Economy”
– The real power of the state ‘dark’ Funds (mainly China, Abu Dhabi,
Singapore, South Korea, Saudi Arabia and Norway, but with equally great
potential in Russia, Uzbekistan and Kazakhstan). The collapse of
government bonds and the shocking increases in the prices of metals and
agricultural products to the relevant stock exchanges and movements
reflect those Funds (Sovereign Wealth Funds). The EFSF (European
Financial Stability Facility) makes the existence of the willingness of
these funds to mobilize and participate in the formation of capital.The Role of China in International Affairs
China’s main goal role, many times, revolves around international affairs. China is the most populous country in the world with fastest growth and development. The shift to a market economy while maintaining tight political control by the Communist Party created spectacular economic developments. China is the industrial heart of the earth right now. Through outsourcing, huge Western companies have settled in China producing primary products (Made by USA in China). This development has also created serious problems and social tensions. Banks live on and have an uncertainty with highly guaranteed loans provided by questionable value assets (especially real estate). The global financial crisis reduces the flow of exports and thus the inflow of foreign exchange and domestic consumption are low.While imports remain high due to the need of the state to create infrastructure and large urban centers as strong foothold in the mainland.
Internal tension is testing the strength of the Communist Party to enforce a few policies. Two thirds of Chinese society (over 1 billion 100 million people) still lives under underdeveloped conditions. Historically, this opposition between the center and periphery has caused major upheavals in China. Challenging historical processes and developments have also been a part of its history over these years. (Mao: To surround the center of the Region. The large Chinese foreign reserves rise to anxiety in the international economic situation and appreciation for the battle is the Yuan. It is always difficult for the external position of China. Last difficulty is the competition for raw materials in Central Asia (Turkmenistan’s gas, oil of Kazakhstan), the subsoil of the South China Sea and the associated competition with Vietnam, the Philippines and Japan. Deep mistrust also prevails for each movement of India and the U.S. Fragile but good relationships are with Pakistan and Afghanistan.
India
Rapidly growing economic growth after the country shifted to market mechanisms and emphasis on new technologies has made India better than a mere developing nation. Nevertheless, the stiff state and the giant public sector with large state benefits system make it difficult for further development. The evolution in the technologies derived from high-end private technological institutes with perfectly trained intellectual graduates. The remaining literacy rate is low except in areas that local communities have intervened– i.e., where regional governments have taken up their responsibilities.
China is considered the body and the brain of the India’s growth in Asia. But in India, there is a serious gap between the development of high technology and the rest being almost primitive economic activity. There was no significant industrial infrastructure and the economy operates in an outdated agricultural production environment, generally with a low level processing. The Congress Party is responsible for the overall underdevelopment, but, it is also the driver for the new developmental achievements, as inside are fermentations for new India.
India in international politics is close to the U.S. and many regions in the West due to the opposition of against Islam, especially with its odds with Pakistan, which embodies fears of India. This is because the soil of Pakistan claims Kashmir, which has harbored guerrillas and terrorism. However, the relation India maintains is good with the official status of Afghanistan being against the Taliban.
