Recession has been tough time for many countries both developed as well as developing. The US has had its fair share of setbacks and India and China are fast recovering from this difficult economic situation. All these countries had to brave it up. Unemployment was rampant, and prices soared, and purchasing power of the people came down. Those who lost their jobs were virtually on the streets. It is a precarious situation to be in.
How has recession affected US, China and India?
Recession did impact countries in the same manner. Industrial production got a setback, less investments, unemployment, unstable market conditions. Yet the impact did vary from country to country as the recovery variations made them stand out from each other.
The United States, which as always remained a super power is now economically struggling and the dollar standing is being threatened. China and India are emerging as economic and political forces that US seems to recognize as being future contenders for the hegemony in world and economic spheres.
Recently in a meeting with Indian Prime Minister, Dr. Manmohan Singh, the US President, Barack Obama said that both China as well as India would be playing a “pivotal role” in future challenges facing the world. In fact, Obama even visited China and also is planning a visit to India in 2010.
The impact of recession on the US economy has been pretty bad. The US is taking time to recover and many observers feel that perhaps US may not be all that powerful in the years to come in world politics. It may have to share its global power with China as well as India.
The dollar has had a set back of late. It is weakening. India recently took a decision to buy gold from International Monetary Fund (IMF) to the tune of $6.7 billion which has surprised many world powers. Of course, Dr. Singh reassured US that would continue to retain its global hegemony.
The recent parley between the leaders of US, China and India, each having bilateral talks with each other was primarily aimed at discussing economic and political issues concerning the respective countries. India, of course, does feel a bit threatened by US paying more attention to China, but Obama assured the Indian Prime Minister that India would not in any way be ignored by it.
It is quite evident that US, china and India would meet more often n common issues and that US has recognized the potential of China as well as India as would- be world powers in the Asian region.