India seems to be the "IT" country right now for big companies like Dell and Microsoft setting up shop there. Blah blah blah wages are going up yadda yadda yadda. So what country is posed to be the next India? Will it be a non-Asian country?
I think Dell and Microsoft have a lot of employees in China already. As for eastern European country, I recall reading somewhere that Estonia has a very vibrant computer community.
The next India? If you mean in a country with as many educated, English speaking people, I'm not sure anyplace can match that.
Eastern Europe is going to be a hot spot. Estonia, Latvia, Lithuania. Cheap labor, educated workforces, LOW TAXES.
There are three factors that work to India's favour in this: 1) A lot of IT/Engineering graduates every year, of whom a good percentage are quite talented. 2) Fairly decent command over the English language. 3) Political stability, and no strong anti-US feelings unlike some parts of the Islamic world and South America. Right now no other place meets all these conditions. China does exceedingly well on point 1, and as good as India on point 3.But lags behind in English language skills. The Eastern European countires right now, are looking towards EU. If they join the EU, then US companies there will have to pay the workers there mnimum EU wages which are almost as equal to what the worker in US gets paid if not higher. So it would not make much economic sense.
Yes. The point 2 is good for India, but you forget one point which China is a lot better than India--the government effciency and infrastracture (sp?). Also with the way China is going, maybe in the future, more people willing to speak Chinese than English? For example, in California, Chinese becomes #1 foreign language (used to Spanish) in High School and College for participants.
What you say is correct, but it works against China too. For sure China has more efficiency and infrastructure than India. Its government is also not at corrupt as India's government. But with this comes the prospect of Chinese government actively interfering in the day to day business of the outside firms in China. Indian government maintains a laissez faire attidue when it comes to foreign firms in India as long as they get their taxes.
I wouldn't call the government's attitude as laissez faire. They have more than plenty of regualations and taxes to keep them far from that. They have a more democratic approach to their over-regulation than China but it's not laissez faire. a
Nowsday, Chinese government is only helping business then interfering it. For example, in Shanghai, the government wants to promote hardware designing companies, but the tool costs about $5M for license. Many small startups cannot affort, so the government bought the tool and let those startups using for free.
Yes, i agree that they want to encourage businesses. That is true. But they also want to control how business is in China. they have stricter regulations. A good example of this is google, when they launched a google China, on government instructions they had to limit/ban all falun gong sites, under the google search. this is one instance of a company's working being interfered with by the government. Google changed their ways, but all companies might not.
The Indian governemnt is hardly hands-off when it comes to foreign investment. Remember the rows over airport privatization or the past ones over foreign banks, etc. etc. etc.
This happens before the government decides weather or not to let the private/foreign players invest or help start a venture. But after they give the green signal, the government in most cases will not interfere in the dailly running the company.
Maybe but in the end I'm not sure that it better. China, for example, has let entire industries be dominated by foreign investors and foreign firms. In comparison India still protects all sorts of industries. Even with ones that have been "liberlised" such as airlines they still place considerable restrictions on what can and can't be done. They may interfere less in a handful of things foreigners are allowed to do but there are a heck of lot less opportunites. I don't want to encourage people to jump on the China bandwagon. But, poorvi, you very well may be leaning to far the other way. An insane amount of foreign investment has been pooring into China (see chart below) and that has been putting a lot of pressure on the government to clarify and create laws and regulations that weren't around 5 or 10 years ago.
I agree with every word you say. But Foreign Investment comparison between India and China is not the topic. Most of the Investment in China is in the manufacturing sector. While in India the investment is in IT and IT related fields. I couldnt find any supporting figures or graphs, but I am sure India will have much more Foriegn Investment in the IT and related sectors than China does. The reasons for those, I have mentioned in my first post in this thread. The reasons that China heavily outperforms India in manufacturing are 1) Much better infrastructure and transportation. 2) Lower labour wages. 3) The Communist government/labour unions of China hardly allows any strikes, so work progresses as per schedule.
But China has lower wages? Not in terms of distribution of wealth. But overall, what you're saying is a nice way to put it. Really, India doesn't have a lot of manufacturing jobs because they have a highly, highly, highly regualted insider/outsider system. It keeps the outsiders (both in teerms of foreign companies but also in the sense of citizens looking for employment that don't have a job) out and helps those who do get in, stay in. The tariffs and regulations are very harsh and prohibitive.
Samples of IQ scores in urban China from internationally used tests. I get an impression that China has a lot of potential to bring forth after more economic reform and better living conditions for more millions of its citizens (better nutrition/quality of life/etc means people will get smarter). But this is just my uneducated guess - so nevermind me
A comparison between India and China in business competence http://in.rediff.com/news/2006/mar/14inter1.htm