'Three Billion New Capitalists': Consider the Outsource. THREE BILLION NEW CAPITALISTS The Great Shift of Wealth and Power to the East. By Clyde Prestowitz. pp. Basic Books. "While Thomas Friedman is celebrating that the world is flat, Prestowitz, a former Reagan administration trade official, is warning that for many of us on that flat. Three Billion New Capitalists. The real message of Wen Jiabao's recent visit to India was the end of years of Western dominance.


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Three Billion New Capitalists by Clyde Prestowitz

Clyde Prestowitz April 20, First, they made peace by moving to settle an old border dispute, and China indicated support for India's bid to become a permanent UN Security Council member. Both parties also three billion new capitalists discussion of a possible bi-lateral free trade agreement.

Last, and by far most important, they called for combining Indian software technology with Chinese hardware technology to achieve world leadership in the global information technology industry.

Thus, India and China are inventing a new version of globalization, which is already negating Western hegemony three billion new capitalists shifting wealth and power to Asia.

What is the history of these developments?

Six hundred years ago, China and the area that is now India accounted for about three billion new capitalists percent of global GDP. Europe was insignificant, and America still lay undiscovered beyond the Atlantic. When Vasco da Gama arrived in Calicut inthe first era of globalization was launched: European countries competed to use their superior technology to create worldwide empires.

Earlier in the 15th century, the Chinese had sent great fleets to India, the Persian Gulf, and the South Pacific, but without establishing trade ties or conquering territory. By the time the Portuguese arrived, the Chinese had gone home three billion new capitalists forgotten how to build ships.

Three Billion New Capitalists: The Great Shift of Wealth and Power to the East by Clyde Prestowitz

Five hundred years later, at the dawn of the three billion new capitalists century, Europe and the United States accounted for the vast bulk of world GDP, while Asia had slipped into increasing economic insignificance. This era was characterized not by empire but by the advent of three billion new capitalists multinational, globe-spanning company that saw the world as its market.

As technology shrank time and distance, products like Coca Cola, McDonald's hamburgers, and the Sony Walkman became global brands, and trade and international investment flows grew at a geometric pace. Indeed, for nearly 50 years, international trade grew faster than domestic GDPs and became the main driver of global growth.

THREE BILLION NEW CAPITALISTS: The Great Shift of Wealth and Power to the East

Yet the growing use of the term "globalization" to describe this phenomenon masked a less grandiose reality: In truth, what was going on was more Americanization than globalization.

The dollar was the world's money.

Most of the foreign investment was American. Three billion new capitalists and pop culture came largely out of America, which was also the major consumer of the exports of other countries. On top of that, the communist and socialist world — including China, India, and the old Soviet Union — wasn't playing.


So globalization really only applied to about half three billion new capitalists world — the half dominated by the United States.

It was the death of Mao Zedong in that began to change all that. He took the truly revolutionary step of setting China's 1.

The fall of the Berlin Wall in Novemberbrought another million former residents of the Socialist Paradise onto the Capitalist Road.

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