The near future’s triumvirate of big economies – China, Brazil and the US – each express a different variation of capitalism. Will they be compatible, complementary or in conflict with each other?
The redistribution of wealth brought on by globalization is raising the expectations of the new middle classes in emerging economies. Amplified by social networks, they are driving the dynamism of social change in a wave of protests throughout the world.
Increasing domestic demand and imports in China is one way of kick-starting the world economy. But in order to do that, the conditions for saving, rather than spending, must be in place.
Once the quintessence of economic disparity and fiscal irresponsibility, Brazil is now showing other nations how to get their economies in order. But many of its problems remain and risk undermining the nation’s hard-earned progress.
Behind a veneer of consensus, two main factions are vying for control of the new “Fifth Generation” of Chinese communist rulers. By the time a leader is picked, most of the concessions will have been made.
In order to avoid sudden shocks China has utilized a monetary policy to nurture its rapid growth, while harnessing inflation often to the detriment of its competition. Keeping a balance between the two will be crucial to its international stability.