‘India, China can’t have too much inequality’

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New Delhi, Apr 8: We are headed back to a natural world order after two-odd centuries of unprecedented Western growth. And the transformation is going to be both difficult and easy. That’s Kishore Mahbubani, dean, Lee Kuan Yew School of Public Policy, National University of Singapore, pointing to the unique historical moment we occupy today. And the need for East and the West to come together ensure a better future for all.

Mahbubani is in India for the launch his latest book, The New Asian Hemisphere: The Irresistible Shift of Global Power to the East (Public Affairs), which, while remaining optimistic about the rest of this landmark century, also points to how some of the pitfalls can be avoided. Mahbubani sees two major problems—reluctance of the West to acknowledge the shift and the psychological non-preparedness of the Asian nations to take responsibility in global leadership. “China, India and other Asian nations have been the biggest beneficiaries of the current economic order, but they must become custodians too,” he stresses, adding “the option of going on autopilot is no longer available”. The fundamental contradiction of the 21st century is going to be between economic forces which will push growth even faster and the political forces which will stand for tradition, is his way of looking at the near future. “We are all in the same boat now, and there is no captain.”

This Singapore resident, born of Indian immigrants, sees reason for optimism in India’s growth, but warns that “neither China nor India can afford to have too much inequality.” He also sees a role for India in bridging the fault lines between the established and the emerging power centres - US and China. “India has withdrawn for now, it will have a huge geopolitical role, especially as it cannot afford to be a bystander in a process it has considerable stakes in”. “China and India have effectively lowered tariffs ahead of schedule,” he says speaking of trade regulations. “The West imposed high-entry points for China to enter WTO, and China thought strategically and worked towards the high standard, realising it would become more competitive.”