Wednesday, July 3, 2013

Michael Spence writes . . .

Our ASET bookclub read this nobel winners book - The Next Convergence.

He ends this May piece from Project Syndicate:

If current trends continue, with the US economy recovering slowly but steadily, the pattern of convergence with China will continue. East Asia as a whole will surpass the US in terms of aggregate GDP by 2015, with China contributing the highest proportion of the total. China’s GDP is projected to catch up to that of the US and Europe in 10-15 years, at which point (if not sooner) both Chinese and US real GDP will exceed $25 trillion (in 2012 prices), more than three times China’s current GDP. Each will account for approximately 15% of global output.

And yet this shift will be accompanied by very substantial global economic challenges and uncertainties, underscoring the importance of Sino-US cooperation. A constructive, cooperative relationship can make a significant contribution to both countries’ efforts to adapt their policies and institutions to achieve sustainable, inclusive growth patterns. Beyond the bilateral benefits, the rest of the global economy is dependent on Chinese and US leadership – both in terms of growth and in matters concerning global economic governance and coordination. Trade and economic openness, financial stability and regulation, energy security, climate change, and many other issues confront the world collectively. It is very difficult to imagine successful global rebalancing and progress without China and the US taking a leading role in the process. Read more at

No comments:

Post a Comment