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for what follows, and most of them disagree with some parts of our text.

      Finally, for so much that has nothing to do with writing books, we thank our families, for forbearance, distraction and love.

       JH, CJ and TB, Kingston, Ontario; and Melbourne, November 2019

       1.1 Introduction

      Early in 2019, the London Financial Times announced, ‘The Asian Century is set to begin’ (Romei and Reed 2019). The grounds on which this pronouncement was based were that whereas in 2000 the Asian economies, all combined, accounted for just one-third of world output, according to calculations based on purchasing power parity (PPP – the method of comparing the currencies of different countries that takes account of differences in standards of living), it was projected that by 2020 they would account for more than half of world output. Among Asian countries, by 2017 China had by far the biggest economy, the biggest in the world according to PPP comparisons, or second to the United States measured in terms of exchange values. According to the first set of calculations (PPP), by 2017 India had the third largest economy in the world, though that of China was two-and-a-half times as big; in terms of the ranking of the gross national income of countries at exchange values, India had only the seventh largest economy in the world and it was only one-fifth as big as that of China, though it was only a little smaller than the economies of the UK and of France – and set to overtake both of them (see tables 1.1 and 1.2).

      Looked at historically, however, the world in the twenty-first century is returning to the way it was before the ‘great divergence’ that took place from the later eighteenth century. From about that time, or rather before according to some calculations, the Western European economies that had until then lagged behind the major Asian economies, took off, and their peoples became, on average, very much wealthier than people elsewhere in the world. In the eighteenth century the Indian share of the world economy is reckoned to have been as big as Europe’s. With China, India accounted for a very large share of the world’s manufactured products. But in the nineteenth century, thanks to European imperialism, ‘Asia was transformed from the world’s manufacturing centre into classic underdeveloped economies exporting agricultural commodities’, in the words of the economic historian, R. C. Allen (cited by Romei and Reed 2019).

      Table 1.1 Gross National Income (current US$) of Leading Countries, 2017

      SOURCE: World Bank, World Development Indicators

Country GNI (US$ billions)
United States 18,980.3
China 12,042.9
Japan 4,888.1
Germany 3,596.6
United Kingdom 2,675.9
France 2,548.3
India 2,405.7
Brazil 1,800.6
Russia 1,355.6

      SOURCE: World Bank, World Development Indicators

Country GNI (US$ billions)
China 23,241.5
United States 19,607.6
India 9,448.7
Japan 5,686.3
Germany 4,274.0
Russia 3,721.6
Brazil 3,173.4
France 2,939.3
United Kingdom 2,810.0

      India was for long seen as perhaps the archetypal poor developing country, of very little account in the global economy. Latterly, even if it has not experienced quite such a dramatic economic transformation as has China in the last decade or so of the twentieth century and the first twenty years of the present one, India clearly has become a major economic power. According to the World Development Indicators of the World Bank, the average annual growth of GDP in China between 2000 and 2017 was 9.7 per cent, and that of India was 7.5 per cent – both rates much higher than those of comparator countries such as Brazil (2.9 per cent) or Indonesia (5.5 per cent). The average annual growth of GDP in the United States over this period, according to the same data set, was 1.7 per cent, that of the UK 1.5 per cent. In a delicious twist of history, an Indian company, Tata, has become the biggest employer of manufacturing workers in Britain, the former colonial power that ruled over the country for a century and a half. The Forbes magazine annual listing of billionaires across the world showed that in 2018 India had 131 of them, the third largest number, behind only the United States and China. There is no doubt that India, with China, will be at the heart of the Asian century.

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