Times are a changin'

You know times are changing when Japan has no one to export their plethora of goods to, China is actually showing an ability to help other countries despite their belief that their ideas do not hold enough weight in international policy, and people believe India could be the next China. All of these perspective changes are clearly correlated to the economic crisis in the United States.

Over the past week China has made their desire to have a bigger say in organizations like the International Monetary Fund (IMF) known to the public. Of course they realize the only way to make this possible is to aid other states in this time of financial downturn. Currently China is operating with a surplus which, today, is not the norm of many powerful countries. This is a perfect time for China to start putting in the money so that they can become a bigger player as changes are made.

China sees this as a good opportunity to increase its influence," said Jun Ma, China economist for Deutsche Bank. China doesn't want to miss out on the chance to help rewrite the rules that will govern global finance for coming decades. "China is more actively contributing their thoughts. This is very different from 10 years ago, when China was much quieter and more low profile," said Mr. Ma, who previously worked for both the IMF and the Chinese government.

China’s stimulus plan to offset the consequences of the crisis is one of the largest in the world. Recently, China contributed $350 million to the Inter-American Development Bank which is aiding Latin American and Caribbean nations.
While China is improving its position in international politics and economic unions other countries see room for competition. Many believe India has the potential to become the next China. Why? One simple reason, democracy. China’s oppressive “communist” government has hampered their development despite a capitalistic style economy. The most powerful nations in the world have adopted democracy and India is realizing its potential.

Admittedly slow, the democratic process has begun to set the foundations which will stabilize and deter political unrest. This will help form a stronger and more united basis of the common population which will be necessary to establish continuity and progress in the near future. In addition to improving the political and economic structure, democracy will play a large role in voicing opinions in global organizations. Other countries will be more apt to listen to the diplomats and economic leaders of India with the reassurance that the views they express are of the people they represent. Countries without the luxury of a democratic political structure enter meetings like the G20 or IMF conferences without a certainty of expressing the desires of their citizens. India believes they are catching up. They believe they have an unprecedented opportunity during this time of financial crisis. Coordinated properly, India can become a player in global economic politics.