China, India and Southeast Asia in Economic Globalization

India had the distinction of being the world’s largest economy in the beginning of the Christian era, as it accounted for about 32.9% share of world GDP and about 32.5% of the world population. The goods produced in India had long been exported to far off destinations across the world. International trade in India reached 24% of GDP by 2006, up from 6% in 1985. International trade as a proportion of GDP reached 24% by 2006, up from 6% in 1985 and still relatively moderate. Although economic in the core, globalization has pervasive effects on the society. It has its impact on the social structure, values, social institutions and attitudes. India is a multilingual, multiethnic and multi-cultural society. Globalization has impacted noticeably on cultural identity and social harmony among various social groups. The Indian social structure is extremely categorized; replete with a multitude of enclaves of several types and strata. The picture we have drawn so far sees China as benefiting from corporate-driven globalisation only if it maintains its low-wage advantage. The same TNCs that once invested in Southeast Asia have moved to China and are prepared to move once more if China loses its competitive edge in labor costs. This may be difficult to imagine at this point, but it cannot be warded off indefinitely if one continues to be dependent on a low-wage, export-oriented, foreign-capital dependent strategy of development. In the light of globalization and regional economic integration, some political convergence will have to take place in Southeast Asia — and it will likely be in the direction of greater openness, freedom and pluralism. This book provides deep insight to various dimensions of issues relating to the subject.