Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

China and the new world order

By George Gu - posted Tuesday, 28 November 2006


A new world order in the making

Is a new world order in the making? The answer: yes. Up to now, only about 20 per cent of the world's people have attained solid development, growth, and modernity. Now the rest are catching up at an unprecedented speed. This sudden surge in so many late developers suggests a brave new world in the making.

Several key changes

Huge changes are happening, within a vastly expanded sphere for all people and nations. We can identify four in particular.

First, wealth making through industrialisation and commercialisation has become a universal thing. For a long time, products made in the United Kingdom, the United States, and Germany dominated global markets. Today, products made in China, Mexico, Vietnam, and Indonesia, among other developing nations, are increasingly flooding the world, changing the global production map again.

Advertisement

Behind this changing map, interestingly, many poor nations have rapidly taken on active roles in the global economy. Their biggest weapon remains low-cost labor, which provides a working platform for co-operation and sharing between the rich and poor nations.

Today, most developing nations are extremely limited in resources and strengths. Hence, for them, this cost gap is a survival gap. In fact, other than cheap labor and hard work, they have few advantages. However, it turns out that low labor cost and hard work do make a difference.

For now, manufacturing activities, especially in the low end of the value chains, increasingly shift to the poor nations, while the developed nations focus more and more on a service and high-tech-oriented economy. This giant change, though only beginning, will impact the future world economy even more.

Second, all regional markets are connected to each other. Interdependence is opening up the old national boundaries dramatically. Most profoundly, the flows of capital, technology, goods, and people have reached a new level. Moving from survival of the fittest to rational collaboration and sharing, life on the earth will never be the same again.

Third, wealth making has gained a record-high status. Consequently, old ideology is lost to the new economic waves. This is a truly golden age for capitalists anywhere, who can reach all corners of the world for the first time in human history.

Multinationals are gaining unprecedented power in shaping global life. Their share of trade approaches 50 per cent and is still on the rise. Actually, they are warmly courted by all nations, rich or poor. Courting them has become a high art for all governments. The new picture is this: incentives move the world: not politics, not ideology, not empty words.

Advertisement

Fourth, hundreds of millions of ordinary people everywhere have joined the entrepreneurial army. Starting a business is no longer for the privileged few as in the past, especially in the developing nations. Furthermore, individual private initiatives are undermining state domination especially in many less developed nations. This is hugely significant especially given that traditional bureaucratic powers in many developing nations have been strong and abusive.

Above all, such changes have happened within a short time, which is possible only in an increasingly globalised world. Naturally, more consequences will follow.

Interdependence and beyond

The sudden surge in late developers is bound to create ripple effects. Since well over 5 billion people are involved, development in these countries will be much more influential than ever before.

  1. Pages:
  2. Page 1
  3. 2
  4. All

Excerpts from China and the New World Order: How Entrepreneurship, Globalization, and Borderless Business are Reshaping China and the World by George Gu.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

6 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

George Zhibin Gu, a business consultant based in China, is an author of several new books on China and globalisation, including: China and the new world order, China's global reach, and Made in China. He can be reached at gzb678@yahoo.com.cn.

Other articles by this Author

All articles by George Gu

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of George Gu
Article Tools
Comment 6 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy