Western nations should come to terms with the rise of Asian economies and global institutions must change to accomodate a new power balance, Indian Prime Minister Manmohan Singh said on Thursday.
India and China, among the fastest growing economies in the world in recent years, have begun to assert their authority on the global stage thanks to robust growth. Singh, who was speaking at a London School of Economics forum, said the rise of major Asian economies will redraw the global map of income distribution, but the West need not worry as it would provide new opportunities for Europe and North America.
"It is essential that the West should come to terms with the consequences of the rise of Asia," Singh said. "One of the re-assuring aspects of the on-going growth process is that it is more orderly. Just as the world accommodated the rejuvenation of Europe in the post-war period, it must accommodate the rise of new Asian economies."
Western firms have benefited from outsourcing financial services and other jobs to India, and have reaped rewards from cheaper manufacturing costs in China. The Indian economy, Asia's fourth-largest, has grown at an average 8 percent for the past three years, and is poised for a fourth year of similar expansion.
China roared ahead of its giant neighbour by opening its economy to trade and foreign investment earlier, bringing in new technology and management talent, and transforming itself into a global manufacturing hub. But India is making big strides too.
Singh, an economist-turned-politician known as the architect of reforms credited with spurring current growth, called for changes at the United Nations, especially the restructuring of its Security Council to reflect the power shift.
"This is as true for the reform and revitalisation of the UN and the UN Security Council as it is true for the management of a multilateral trading regime, for the protection of the global environment and security of energy supplies."
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