How is the growth of India and China affecting the world economy?
The opening up of the Chinese and Indian markets to the world economy is having a profound affect. These countries are going through an industrial revolution and manufacturing a lot of goods for the west. In order to provide for this expansion these nations are consuming a lot of oil and food. This coupled with infringing on food production by oil crops has led to a food crisis throughout the world. Similarly the oil industry is under pressure and consumption has risen rapidly. Moreover the cheap labout market in china has led to the transfer of jobs from the west and other areas of the world while pushing down global wages in general and freezing wage growth. This deindustrialisation of the west is partly responsible for the growing consumer debt in the west as these nations dont have anything to barter for the goods they trade. This process has led to the redevelopment of the labour markets in countries like Britain and the US to generate huge masses of working poor people working mo
