Paradigm Shift of World Economy
In the early 20th century the world economy had been divided in to western and the third world countries, including developing economies like India and Africa. After opening its market in 70s by China and thereafter by India in 90s the competition began for liberal market and investment opportunities. This has ultimately eradicated the poverty by massive upward graph of millions of people which ultimately affects standard of living. There is paradigm shift in economy of countries like China, South Korea, Thailand, Indonesia and India, due to their increasing growth rates that too because of their investments in infrastructure and education. This happens as they combine the human capital and economic capital with a relatively young population and opposing the aging economies of western countries. These countries want to achieve economic excellence in every sector of their business. Some of these countries were known as Asian Tigers whereas the others were called the hottest emerging markets. These Asian countries led their growth chart increasing only after integrating their market with global economy as a result they are representing the economic group like G20. Economic crisis impact is more on western countries than Asian countries due to power shift in investment. But it does not mean that vibrant Asian economy like China and other emerging Asian economy should take it easy. As India is much behind of China in many sector and China on other hand is following progressive path because of Chinese government decision making power, which led China’s rise which is an illustrative of another paradigm shift, where it was previously thought that only democracies could sustain high levels of economic growth. Another shift in economy is from emerging market like Brazil, South Africa along with rejuvenated Russia, emerging India and vibrant China are now member country of BRICS. This group of nations is able to sustain their growth rates and challenge the western countries in terms of power and prestige instead of being just countries that are still growing. These emerging economies in few years may likely be an alternative to the western countries. The paradigm shift in global economies is due to countries like China, South Korea, Thailand, Indonesia and India that too because of their vibrant investment policy in all business sectors.