Asia and the west
With a show of hands, moderator Michael Oreskes, Senior Managing Editor of the Associated Press, asked the audience gathered in the session “What does the rise of Asia mean for western economies and companies” on the rise of Asia whether they felt they knew enough about China and India and how these countries’ economies are affecting the West.
A smattering of hands went up in the near-capacity room. With that, the panel discussion commenced with a distinguished panel of speakers who each brought their own unique perspective of the implications of a rising Asia.
James Wolfensohn, Chairman, Wolfensohn & Company and former President, World Bank, noted the crucial statistic. “By 2050 it is projected that 48% of the global GDP will be comprised by India and China,” Wolfensohn said.
Desmond Shum, CEO, Airport City Developments, held a tempered view about China and its growth. Instead of China having a role as a dominant world player, Shum sees a world of parity instead. “Chinese companies can be very competitive in their domestic market, but not necessarily in a global market,” he said.
Charles–Edouard Bouée, Senior Partner, Head of Asia, Roland Berger Strategy Consultants, acknowledged the monumental challenges facing China: an asset bubble, widespread corruption, and the environment among them. Still he remained positive. “Do not bet on the collapse of China,” Bouée said. He said China’s strong government direction the growth of entrepreneurship, and the culture of assimilation were strengths.
S.D. Shibulal, Co-Founder and COO, Infosys, India, said that as the economies of China and India grow, there is evidence that their economies are moving from how they have been traditionally seen to something different. “They are becoming hubs of innovation,” Shibulal said.
Innovation that will be supplied by talent, as Jacques Attali, CEO, PlanetFinance, said that over the next several years China and India will hundreds of thousands of highly trained engineers.
Responding to the question of how should the West adapt, Attali said the role of U.S. business is a vital one. “These are the new markets, the new hubs, they need to be liberated,” he said.
The conversation among the panelists ultimately came back to the question of what China’s role will be in the following decades.
Shum for one maintained the same pragmatic view he expressed at the panel’s opening. “The fact is if your model is not admired around the world, you can’t be that dominant player.”
