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The Global Delta - Stephen Roach

Today’s world is increasingly caught up in a China mania, with growth rates literally off the charts in most aspects of Chinese economic activity. But as impressive as these rates of increase are, it is important to remember that China is still a relatively small economy in the broad scheme of things. Sure, if small economies continue growing rapidly ad infinitum, then, of course, they will eventually become big economies -- overtaking the current leaders in the world. Such extrapolation seems to be the allure of the so-called BRICs paradigm -- the rather simplistic notion that the developing economies of Brazil, Russia, India, and China have the potential to exceed the collective output of the G-6 developed economies over the next 40 years.

Source: Morgan Stanley

:) Falkor

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