The future for rich countries is economic stagnation, as economic growth increasingly occurs in developing countries in Asia.

Introduction

In December 2007, The Great Recession has affected the world economy(S. Montana.2010). This downturn more or less was detrimental to every country. However, by the summer of 2009, world economists started to believe that recession was over. The subsequent recovery was weak with persistent high levels of unemployment and inflation which still remained throughout many countries(The Economist.2010). This so called economic crisis caused substantial economic upheaval. Rich countries are no longer dominate the world, while rapid economic growth in Asia is becoming more and more significant. This essay will emphasize that the balance of power will not shift to the East, as India and China develop, and will illustrate the key fact why the West will not regress. An analysis regarding the forecast for both, developing and developed, countries will be provided by looking at: the economic prognoses for Asia, China and India in particular; the potential economic stagnation in rich countries; the evidence suggesting that the balance of power will not shift from West to East.

Current economic situation in Asia. Forecast for Chinese and Indian economy.

Even The Great Recession in 2007 could not stop sustained takeoff of two countries, which population together accounts one-third of the planets population, India and China. Both countries have been growing steadily for the last two decades, China by 9.5% a year and India by 6%(Bloomberg BusinessWeek.2008). Complementarity makes these countries especially powerful. India keeps amaze the world with design service and precision industry while China stays dominant in mass manufacturing. In other words those Asian giants complemented each other strengths, China controls heavy