The world has witnessed in history how quickly the focus of power shifts from one side to another. The days when the Roman Empire was the hope of the world for a very long time and nobody could think of its demise. Not to mention the decline of the British Empire that ruled the world for centuries. The bottom line is that with time everything changes and nothing is constant in this world.
The Greek philosopher Heraclitus once said;
“Nothing endures but change”.
We can call this a universal phenomena or the rule of the land but it justifies itself when we talk about the shift the world is currently undergoing. The world dominance of the United States is evident; therefore a slight change in the US economy marks a significant change in the worlds economy. It acts as a tipping point and the whole world follows. The dependence on one economy is like putting all our eggs in one basket.
In the past decade Asia has been the driving force of the world and it is expected to continue its growth with increasing stability in the next decade. The dominance of the West is slowly perishing with the emergence of powers like India and China. We can clearly see that the growth rate of Europe and US is below potential. The unemployment rates are high and economic stability is far fetched. Eastern countries like India and China are growing comparatively. The GDP growth of these two countries has been spectacular in the past 5 years. Predictions are being made that before 2030 china will take over as the world’s largest economy. Currently China is the runner up after the United States.
How did this happen? The answer is reflected in what Heraclitus said: “Nothing endures but change”. The gradual rise of the Eastern economies is backed by their export capabilities. The East gradually became a supplier to the entire world of everything from consumer goods, machineries, building materials to practically any and every commodity.
The West quickly realized the cost effective production capabilities of eastern countries and evidently started shifting local production facilities to countries like China, Indonesia and Malaysia. Software companies moved towards India, generating millions of jobs for Indians who had good English skills. This resulted in a significant a rise in the Business Process Outsourcing (BPO) Industry.
With millions of dollars pouring in from the West and the constant growth of the Eastern region, the focus of the world has shifted from West to East, and the West is now suffering from the consequences. The immediate effects are growing unemployment, the decline of purchasing power, and it’s first recession in decades. Although it is evident that the focus of power has changed, the world is still guided by Western Giants like the US, who are highly equipped and developed enough to withstand any debacles. It is a testing time for the world. We are being examined by our own system and the system will eventually decide the focus of the world. No one can be certain what the future holds, but there is one thing that we can surely say; CHANGE IS CONSTANT.
**This is Part 1 of a series of articles to be published on this subject.
