Sunday, June 25, 2006
India vs China: Is the world really 'flat'?
Sorry for digressing from my pet topic of books and writers this week. I find the India vs Chian debate extremely engrossing as it concerns our own future. A good debate on the two rising economies has been going on for quite some time now.
Here is an interesting podcast, which in fact provides a radically different view on this topic (TiECON East 2006: Howard Anderson Keynote on India & China: Is the World Flat or “Spiky”?)
Venture capitalist Howard Anderson, in this podcast, predicts the position of India and China in the next 20 years.
Anderson says that India has a temporary advantage and it might lose the game if it does not move towards development of proprietory software and increase its manufacturing base (Amartya Sen said the same thing in a BBC interview a few days ago). India already employs about 10,000 foreign workers (from US, Europe as it is suffering from shortage of skilled workers!!) and the salaries of its workers are steadily increasing--damaging India's cost advantage (No wonder recently Apple decided to shut down its outsourcing lab there; Another company, a British power company, also recently closed down its call centre business in India).
China is developing its physical as well intellectual infrastructure at a great speed. It seems to be at a more advantageous position.