The US gauntlet for India and China


Place: Mumbai | Agency: DNA

This much is clear from US president Barack Obama’s state of the union speech delivered on November 25: India and China better watch out.

In his attempt to rejuvenate the US’s flailing economy, create jobs and improve morale, Obama has pointed out that the US needs to understand how the world has changed and move appropriately.

He said, “In a single generation, revolutions in technology have transformed the way we live, work and do business… Meanwhile, nations like China and India realised that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science. They’re investing in research and new technologies”.

Obama’s answer to this is not just inspiring words about the greatness of America or its strength and resilience but a concerted effort to boost education and invest money in research and development. The goal is for this generation of Americans to have their “Sputnik” moment — as the Soviets did with the first space exploration. He did not fail to point out that America is already at the forefront of invention and innovation and just has to take it further. And, it must be said, faster than the rest of the world.

There is no doubt that America is still the most powerful nation in the world and has the biggest economy. But it is also true that new and potent threats are coming from the developed world. India and China, both have shaken the old powers systems with their growth and their demand for a share of the pie. The challenge for India and China is now to understand that the US has thrown down the gauntlet and work even harder to improve their positions.

Obama plans to use tax cuts to big companies to fund his education and research plans. If he manages to implement even some of his ideas, the results will be evident and the threat to the rest of the world’s emerging powers, very real. It is true that Obama is no longer in the dominant position that he used to be in and that the US economy is suffering. But having taken a page out of former president Bill Clinton’s book and concentrated on the economy, Obama has re-focused his government and the Republicans on the issues that can make a difference.

Whether he can or not is another matter, what is evident is that if he does it, India and China must be prepared.