Tectonic Economics? Robyn Meredith has written a must read book, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us. Take a look at Wall Street lately? Then think about oil, the environment and the post cold war shift in the global economy. Its time for business and education to take note…and fast.
Tectonic Economics is about the impact of the two fastest growing economies who have embraced capitalism AND globalization at the same time.
And by the way America and Europe have been left out of this economic growth spurt since 9/11.
Actually at the rate China and India are rising you just need to look at both countries since 9/11 to see their immediate impact.
Meredith has done a great job of helping understand these two transformations. There is no more waiting for a new generation they have arrived and instituted global change in less than a decade. For most Americans they still do not see changes occurring at this speed affecting the global economy.
Meredith makes the hard salary figures easy to understand why companies around the globe have jumped to China and India. But this will not be easy for IT professionals in America. India’s InfoSys hires computer science graduates (some also have an MBA) to be a VoIP specialist in Bangalore with an annual salary of $5,000. Yes, five grand a year for a VoIP specialist. This similar type job in California via InfoSys pays $120,000.
This should be really easy to understand why hundreds of tech companies including Cisco, Apple, IBM and HP have moved operations (some larger than others) to Bangalore. Remember you have to please your stockholders. The changes already underway (and under the radar) will continue to add stress to America’s middle class.
From MIT’s