Outsourcing To India, China Pose Challenge To Western World

Washington | Updated: Aug 20 2004, 05:30am hrs
Outsourcing has resulted in a shift of wealth to India and China, posing a challenge to the western world as a result of the possibility of a frightening increase in demand for natural resources.

The phenomenon, which is fast picking up in India and China is the inevitable result of mature capitalism and poses a challenge to the western world, a media expert said in an article.

As China and India grow their economies and working families begin earning middle-class incomes, the demand for energy expands, said Floyd J Mckay, journalism professor emeritus at Western Washington University in an article in The Seattle Times.

The sheer size of these nations together nearly 2.5 billion people means that even if outsourcing is limited to the relatively elite, educated class, there are more people willing to work hard and compete than there are jobs in the US, he said.

One of the implications of a shift of wealth to these nations is a frightening increase in demand for the worlds natural resources, particularly oil and natural gas, he adds.

Also, as nations such as China and India, grow their economies and welcome more into the middle class, America and Europe will be forced to work and buy smarter.

As more nations go automotive, the worlds limited supply of oil will be more expensive. Add to oil a host of other natural resources that accompany an advanced, mature, capitalist society, and the implications of spreading the workforce mean additional pressure on resources and also the worlds limited supply of clean air and water, timber and farmland.

A second implication worth pondering is the location of outsourcing. Beyond India and China, the top 10 outsourcing sites include three others in Asia (Singapore, Malaysia, the Philippines), two in Latin America (Brazil, Chile), two in Europe (Poland, Czech Republic), and Canada, the article said.