China, India with Japan are Mighty Powers in a Move

Globalization of the Marketplace requested curtain approaches of Economics which could properly balance demand-to-supply ratios to avoid economic crashes and upheavals. Most distinguished elements of these Globalizing market from the previously used are first, the increasable capitalization and concentration of wealth by most developed and developing countries that allowed industrial expansion, and second is the abilities for relocation of industrial/manufacturing in very short time prompted by incredible high technological innovations in manufacturing and in communications, and expanding worldwide free entrepreneurship market approaches. Countries like China and India most benefited from such new developments by opening their markets to freer competition thus their vest markets and good organization prompted flows of capital to be invested in mostly industrial production (manufacturing); however in the beginning of their economic explosion these developing economies relied of export to most developed markets of US and EU gradually China and India were building their own consumption (demand) which helped them overcome the last Global Recession better then the rest of the World; these countries (China and some of India) have succeeded better conditions for industrial production/manufacturing

· by keeping their currencies undervalued (particularly China) that allows difference in prices of goods for internal use and these for export

· by constantly rising productivity: keeping value of goods less expensive: production cost, labor and overhead expenses

· by improving quality.

· by maintaining well educated and motivated labor force;

· by having strong social policies

· by building infrastructure and service sectors.

Thus even Chinese and Indian industrialization followed Japan’s path, because of their vastness, the very new economic tools of easy to use high technologies and internet and the expanding freedom of market competition around the world they (China and India) were able to start strong industrial production growth which enable them powerfully expanding export in proportions unknown and unreachable before. The difference of the impact on the Global market between China and India from one side and Japan is in the proportions of industrial dominance they were able to achieve on the Global marketplace: much more powerful and overwhelming.

When Japanese economy went through its industrialization, it did not take long for Japan to become a very strong exporter flooding the world with its cars and TV’s making Japan the strongest economy which first place is now being taken by China. Japan was locking numbers to maintain adequate consumption thus Japan was volatile to Global recessions but China is not locking numbers and is not volatile that much to Global recessions as it well demonstrated most recently to the World: by growing its own consumption, by maintaining strong social policies and by improving its infrastructure China has shown to everyone the economics is a science not politically and ideologically motivated function of governments run by interest groups, lobbyists or even public opinion. Thus however an economy needs financial or other adjustments these must be used indiscriminately (without political influence). Which is a parody because China is a communist run country that happen to run its economy non politically.

The problem for the rest of the World in this new development of well becoming high tech industrialized China and India competitiveness in combination with mighty Japan as already being strongest industrialized economy in the World is these industrial countries’ ability to export industrial/manufactured goods globally in race unseen and unknown, run expanding surplus and thus triggering fiscal shortages in other countries and markets elsewhere. These countries are using and improving high technologies and creating their educational and scientific basis in high technologies appropriating them as strong industrial Global competitors.

Manufacturing/industrial production adds highest percentages to any GDP of any country by the system of economics currently used; to maintain adequate fiscal quantities against ever rising Social Security, Medicare, Educational and Infrastructural expenses US Economy as well any economy must maintain constant growth (but not any growth mostly of Manufacturing/ Industrial Production) when the rest of less developed economies have even more improbable task to develop such manufacturing/industrial production in order to continue maintaining and improving their fiscal quantities;

To keep up with furiously competitive old big guys on the block like US, Japan and Germany and even more vast and dangerous new big guys like China and India is futile, thus most developing countries are left with very few alternative to meet their minimum obligations to their citizens: either cut their fiscal quantities and consequently their fiscal expenses (examples is Bulgaria) that basically make this country’s infrastructure deteriorating, basic medical services unavailable and poverty unknown until widespread, or run like Greece into high national debt to somehow maintain fiscal quantities, apropos.

If there were a few countries running into fiscal problems the World may carry-on without a problem, however some most developed economies as US and UK were running into very similar to these of developing countries problems of constant deficit and consequential national debt, EU is experiencing very similar problems too. Last Global crisis was one not only a consequence of “self adjusting economic cycle” of dialectic development but also it was a sign of economies using manufacturing/industrial production foundations for their economics would suffer when such manufacturing/industrial production was gone from their economies to oversees: Real Estate over-capitalization was prompted by deregulated financial sector but the real reason for such doom-and-bust economic consequences was the shortage of economic growth for of the US and other economies.

(See: Philosophy of the Economy)

© Joshua Konov,2010
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