In the aftermath of the global financial crisis, the economies of
A more contentious claim offered by Bardhan is that internal reform -- not the global market -- has been the key driver of both countries' growth. Rather than focusing on
The book thus suggests that the fates of
GIANT FEUDS
One of the external circumstances affecting both
The nadir of Chinese-Indian relations was the brief, one-sided war between the two countries in 1962, which resulted in a humiliating defeat (and the loss of more than 3,000 troops) for
There are also newer sources of tension, including competition over
Underlying these tensions is a power gap. Rising simultaneously, the two Asian giants compete for markets, natural resources, commercial investment, and political influence in
Of course, there are forces -- especially the
ASIAN LODESTAR
A major factor in the Chinese-Indian competition -- and in its perceived significance for the wider world -- is that the two countries have such different political systems. Their trajectories, therefore, offer insights into the prospects for development under authoritarianism and under democracy. In addressing this point, Bardhan rightly cautions against the simplistic conclusion that authoritarianism is superior to democracy with regard to growth. Yet he echoes simplistic characterizations of the subject, writing, for example, "
The challenge for
One hears often of a "
This concerns many in the West who warn against
WESTERN RULES
Having been influenced by foreign investors and experts, the Chinese government and business community have deliberately altered
Meanwhile, argues Steinfeld, the role of the
"
Such analysis may breed complacency. First,
The state's decisive role in the Chinese economy allowed it to respond bluntly and effectively to the recent global financial crisis. But, as the financier
These insights are useful, but perceptions matter, and many U.S. policymakers viewed
THE INDISPENSABLE NATION
Many Americans are concerned that in a "post-American world," as the
Before the economic crisis, there seemed a reasonable case to be made that
But some efforts are already under way to limit Asian economies' reliance on U.S. markets by increasing Asian states' own domestic consumption and developing new financial mechanisms to keep Asian savings in
Steinfeld's book explains why even such reforms separate Asian economies from Western ones only marginally. As
There are many additional factors outside the scope of Steinfeld's book that also demonstrate the interdependence of
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Awakening Giants, Feet of Clay: Assessing the Economic Rise of China and India
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- Stopping Nuclear Proliferation Before It Starts
- Veiled Truths: The Rise of Political Islam in the West
- Steps to Stop Iran From Getting a Nuclear Bomb
- Iran: The Nuclear Containment Conundrum
- Iran: The Right Kind Of Containment
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- What China's Currency Reform Means For Investors
- Russian-American Obstacles Overshadow Obama-Medvedev Meeting
- Russia's Courtship of Silicon Valley
- Ukrainian Blues: Viktor Yanukovych's Rise and Democracy's Fall
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- Afghanistan Poses Difficult Challenges
- Defining Success in Afghanistan
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- Castrocare in Crisis
(C) 2010 Foreign Affairs, September/October 2010