Refer to the article at <
http://www.asianscholarship.org/asf/ejourn/articles/Quan%20Heng2.pdf> for a
comparison between inequalities in China and India over time.

Sukla

On 2 August 2010 09:58, Sultan Ibrahim <[email protected]> wrote:

>
>
>
>
> THat is really great news. What is truly great about china is that the
> country has banished poverty and education is provided to all its citizens.
> What is now required is an air of cooperation in Asia so that the others in
> the region can learn and try to replicate this model. Lets put a break to
> the deepening polarisation of wealth and poverty in India so that the
> largest no of poor in the world will be able to live a decent life. sultan
>
> --- On Sat, 7/31/10, Sukla Sen <[email protected]<sukla.sen%40gmail.com>>
> wrote:
>
> From: Sukla Sen <[email protected] <sukla.sen%40gmail.com>>
> Subject: [IHRO] China overtakes Japan as No.2 economy - FX chief
> To: "greenleft_discussion" 
> <[email protected]<GreenLeft_discussion%40yahoogroups.com>>,
> "IHRO" <[email protected] <ihro%40yahoogroups.com>>, "issueonline" <
> [email protected]<issuesonline_worldwide%40yahoogroups.com>>,
> [email protected] <arkitectindia%40yahoogroups.com>,
> "indiathinkersnet" 
> <[email protected]<indiathinkersnet%40yahoogroups.com>>,
> "mahajanapada" <[email protected]<Mahajanapada%40yahoogroups.com>>,
> "bahujan" <[email protected] <Bahujan%40yahoogroups.com>>,
> [email protected] <invitesplus%40yahoogroups.com>
> Date: Saturday, July 31, 2010, 10:12 PM
>
>
>
>
> [How about Third Worldist theories?]
>
> http://in.reuters. com/article/ idINIndia- 50518020100730
>
> China overtakes Japan as No.2 economy - FX chief
>
> Fri Jul 30, 2010 5:56pm IST
>
> By Aileen Wang and Alan Wheatley
>
> (Reuters) - China has overtaken Japan to become the world's second-largest
> economy, the fruit of three decades of rapid growth that has lifted hundreds
> of millions of people out of poverty.
>
> Depending on how fast its exchange rate rises, China is on course to
> overtake the United States and vault into the No.1 spot sometime around
> 2025, according to projections by the World Bank, Goldman Sachs and others.
>
> China came close to surpassing Japan in 2009 and the disclosure by a senior
> official that it had now done so comes as no surprise. Indeed, Yi Gang,
> China's chief currency regulator, mentioned the milestone in passing in
> remarks published on Friday.
>
> "China, in fact, is now already the world's second-largest economy," he
> said in an interview with China Reform magazine posted on the website (
> www.safe.gov. cn) of his agency, the State Administration of Foreign
> Exchange.
>
> Cruising past Japan might give China bragging rights, but its per-capita
> income of about $3,800 a year is a fraction of Japan's or America's.
>
> "China is still a developing country, and we should be wise enough to know
> ourselves," Yi said, when asked whether the time was ripe for the yuan to
> become an international currency.
>
> CAN IT BE SUSTAINED?
> China's economy expanded 11.1 percent in the first half of 2010, from a
> year earlier, and is likely to log growth of more than 9 percent for the
> whole year, according to Yi.
>
> China has averaged more than 9.5 percent growth annually since it embarked
> on market reforms in 1978. But that pace was bound to slow over time as a
> matter of arithmetic, Yi said.
>
> If China could chalk up growth this decade of 7-8 percent annually, that
> would still be a strong performance. The issue was whether the pace could be
> sustained, Yi said, not least because of the environmental constraints China
> faces.
>
> In an assessment disputed by Beijing, the International Energy Agency said
> last week that China had surpassed the United States as the world's largest
> energy user.
>
> If China can keep up a clip of 5-6 percent a year in the 2020s, it will
> have maintained rapid growth for 50 years, which Yi said would be
> unprecedented in human history.
>
> The uninterrupted economic ascent, which saw China overtake Britain and
> France in 2005 and then Germany in 2007, is gradually translating into clout
> on the world stage.
>
> China is a leading member of the Group of 20 rich and emerging nations,
> which since the 2008 financial crisis has become the world's premier
> economic policy-setting forum.
>
> In one important respect, however, China is still a shrinking violet:
> anxious to shield itself from the rough-and-tumble of global markets, it
> does not permit its currency to be freely exchanged except for purposes of
> trade and foreign direct investment.
>
> And Yi said Beijing had no timetable to make the yuan fully convertible.
>
> "China is very big and its development is unbalanced, which makes this
> problem much more complicated. It's difficult to reach a consensus on it,"
> he said.
>
> In the same vein, China was in no rush to turn the yuan into a global
> currency.
>
> "We must be modest and we still have to keep a low profile. If other people
> choose the yuan as a reserve currency, we won't stop that as it is the
> demand of the market. However, we will not push hard to promote it," he
> added.
>
> NO BIG RISE IN YUAN
> China has been encouraging the use of the yuan beyond its borders, allowing
> more trade to be settled in renminbi and taking a series of measures to
> establish Hong Kong as an offshore centre where the currency can circulate
> freely.
>
> But Yi said: "Don't think that since people are talking about it, the yuan
> is close to becoming a reserve currency. Actually, it's still far from
> that."
>
> He said expectations of a stronger yuan , also known as the renminbi, had
> diminished. There was no basis for a sharp rise in the exchange rate, partly
> because the price level in China had risen steadily over the past decade.
>
> "This suggests that the value of the renminbi has moved much closer to
> equilibrium compared with 10 years ago," he said.
>
> Yi's comments are unlikely to go down well in Washington, where lawmakers
> have scheduled a hearing for Sept. 16 to consider whether U.S. government
> action is needed to address China's exchange rate policy.
>
> China scrapped the yuan's 23-month-old peg to the dollar on June 19 and
> resumed a managed float. The yuan has since risen only 0.8 percent against
> the dollar, and economists calculate that it has fallen in value against a
> basket of currencies.
>
> China would stick to the principle of holding its $2.45 trillion of
> official reserves in a mix of currencies and assets.
>
> The stockpile -- the world's largest - was so big that it was impossible to
> adjust its currency composition in a short space of time: "We won't be
> particularly bearish on the dollar at a given time or particularly bearish
> on the euro at another time."
>
> (Additional reporting by Zhou Xin; Editing by Ken Wills)
> --
> Peace Is Doable
>
> [Non-text portions of this message have been removed]
>
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