Economic Power

Free Essay Sample «Economic Power»

The economic power of the country is defined by the amount of  Gross Domestic Product. The leading economy has the highest GDP data per capita. GDP per capita measures the strength of the economy by determining the average wealth of all residents in the country. China and India were the economic giants between 1820 and 1870. Unfortunately, between 1870 and 1913, they experienced a sharp economic decline making the United States to assume the superiority. However, these countries are vigorously catching up with USA. In this paper, these issues are analyzed by critically analyzing charts and also research (Bardhan, 2012).

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The first chart shows that China had the strongest economy followed by India. The strength of China can be attributed to its immense population. China and India had the highest population in the world history China and India comprised of 36% of the world population in the 1870, which was the highest population in the world history. The high population resulted into increased economic activity resulting to high input. In the Chart, China was  the leading economy with a GDP of 16.4% followed by India with 9.3%. However, these countries lost dominance between the year 1870 and 1950 where they experienced a relatively sharp economic decline. The change can be attributed to the negative effects of colonialism. Colonialsm hindered the growth as it prevented them from applying the indigenous policies of promoting economic growth. However, U. S.A became the leading economy as demonstrated in the chart with a GDP of 18.6. It is anticipated that china will be far ahead of U.S.A by 2030 (Meredith, 2008).

The second chart shows that China and India countries are recapturing their glorious position in the international sphere. These countries began the process of recovery in 1978 and 1992 respectively. These events were made possible due to various social and economic reorganizations. First, it adopted a triple mix economy which combined private and public ownership, centralized and decentralized structure and plan and market economy. It also introduced a decentralized system of governance, which gives more power to the private capitalists and local authorities. India also followed closely the steps adopted by China. Its main reforms include advocacy for liberalized economy both locally and internationally and adoption of a decentralized system, which is autonomous to various economic states and agents. The second chart shows that china is regaining the economic dominance where it has overtaken the major countries of the world. India has not performed exemplarily well, but its regaining its status (Bardhan, 2012).

The obvious implication is that America willl lose their economic dominance and power. The Chinese and Indians boast of their active diplomacy and strong economic power and, therefore, pose a risk of overthrowing the existing order. It also poses a risk of restructuring the institutions of the international system, as well as reshaping   its rules in order to serve their interests and other hegemon countries (Meredith, 2008).  

There are certain recommendations that United States can implement to ensure its position in the global economy is intact. The first U.S should reestablish itself as the leading supporter of the international systems that supports the western order. The move is likely to attract other western countries into the system thereby reinforcing the dominance of the west. U.S.A. should also champion the support of multilateral institutions, which results in signing of agreements and trade talks thereby expanding its markets. It should also help the developing countries grow into global institutions that can rationally make decisions regarding their economy (Meredith, 2008).

In conclusion, China and India are rapidly coming back to regain their economic dominance. This might make America lose its economic influence and dominance. However, there are measures that relating to international systems that can save America and make it remains intact.

Free Essay Sample «Economic Power»

 

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