The Elephant and the Dragon
Last night I watched Charlie Rose's interview with Robyn Meredith, writer for Forbes Magazine, as well as author of, The Elephant and the Dragon: The Rise of India and China, and What It Means for All of Us. Fascinating piece, but also a deeply troubling one. And although the individual components of the story have been out for awhile, somehow it wasn't until last night that I connected the dots.
Everyone is aware of the rise of China in recent years due to massive economic growth and development, and consequently as more MNC's build factories in China, more and more manufacturing jobs are moving overseas. Similarly with India, though it has developed more of a service economy than a manufacturing economy, it is also experiencing rapid economic growth. But what I didn't realize is that due to various reasons, China and India withdrew from the global markets for the past 50 years, giving us what Meredith calls a "free pass." However, because of the possibilities opened up through technology, both of these countries are rapidly engaging in the world markets and 1 billion new workers are now entering the global workforce. In other words, it hasn't been a slow, gradual change, but rather the impacts of this entrance into the global economy are going to be concentrated in a short timeframe.
Additionally, it is not just the size of the increase in the global workforce that will be competing with American and European jobs, but the quality as well. Meredith cites that there are around 1.3 million U.S. college graduates each year, whereas there are 2.6 million college graduates coming out of India each year, and 4.1 million Chinese graduates. Therefore it is not computer programmers vs. tennis-ball makers, but computer programmers vs. computer programmers. If you do the math, in a competitive global market, the forecast doesn't look good for American and European workers. As Meredith points out, it is simply not realistic for Americans to continue to earn 10 times more than the rest of the world. The global market will move towards equilibrium, and therefore the standard of living in the U.S. and Europe will look dramatically different in 30 years from how it is today.
Additionally, it is not just the size of the increase in the global workforce that will be competing with American and European jobs, but the quality as well. Meredith cites that there are around 1.3 million U.S. college graduates each year, whereas there are 2.6 million college graduates coming out of India each year, and 4.1 million Chinese graduates. Therefore it is not computer programmers vs. tennis-ball makers, but computer programmers vs. computer programmers. If you do the math, in a competitive global market, the forecast doesn't look good for American and European workers. As Meredith points out, it is simply not realistic for Americans to continue to earn 10 times more than the rest of the world. The global market will move towards equilibrium, and therefore the standard of living in the U.S. and Europe will look dramatically different in 30 years from how it is today.
What's more, if you add to this equation the global shift in Christianity's "center for gravity" (see Alister E. McGrath's book, The Future of Christianity) from the North Atlantic (between North America and Europe) to the Indian Ocean (between Africa and Asia), the implications are enormous. The world, both economically as well as religiously, will be radically different one generation from now.
Consequently, in terms of global missions, both the focus and strategy will necessarily change, as well as the ability of North American churches to support missionaries since the available financial resources will be much smaller. And that has big implications for us, the missionaries. The good news in all this, however, is two-fold. First, there will be millions people in India and China who will finally have an opportunity to come out of abject poverty and enjoy a reasonable standard of living. Secondly, in Europe where people have grown accustomed to their standard of living and have largely decided that God is irrelevant to their lives, the coming radical and rapid economic changes might give them pause to reconsider.