THE NEW FRONTIERS

Honestly, I am a type of person who finds economics as the second most uninteresting topic of all, politics being the first one. Since high school, I’ve been marveling at the thought of “why would not just our government produce more new money to fund its projects”, many attempted to answer my questions but I just heard more economic principles which just impelled more confusions on my end. Thus, upon reading the article entitled “The new frontiers”, it took me quite a while to digest what it was trying to convey. It focuses more on the potential of China in having a more robust economy and gaining competitive edge in the world market by the time the recession ends. In my opinion, I do believe that China will become a lot better in the future than it was in the past. I remember, my high school history teacher, quoting a line from Napoleon Bonaparte, told our class that China was as a “sleeping giant”. Tapping its potentials would make it emerge as one of the leading nations in the world economy. This sort of “prophecy” about China is nothing new to us; in fact, we are in an era when its dramatic economy boost is coming to reality. I do believe that even before the recession started the economies of the developing countries mentioned in the article were already strong. Had not the recession surfaced, they would have gained greater profit margins. Every nation is affected by the recession but it does not completely impede one country from developing. The development may have slowed down but it is still moving forward. The article sounds like a nightmare for the USA but I am pretty sure that it is doing its best to employ the best strategy to beat down the financial crisis. Anand Raman says that companies in the developing countries are concentrating more on growing their sales at home. However, I think, with the exports shrinking, companies in other nations are also doing this approach. Every government must be implementing a system that would help it best adapt to this economic crisis. But as soon as the recession ends, the world economy will gradually normalize and the “growing divide” mentioned by the author will not realize for the very reason the author himself said that “financial markets all over the world are intertwined”. I like the part where Africa’s potential is being discussed. It is the 2nd largest continent in the world with nations sharing common languages, cultures and trade routes. Companies scattered in this continent are very likely to make a feasible market by creating a powerful channel of communications and instigate intense trading among African nations and the rest of the world. I will not be surprised if someday Africa will be using only one type of currency in its territory just like European countries which are united by the Euro currency. While the article contains economic verbosity, I still find most of its part easy to understand because of its being straightforward.