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AIPC MEMBERSSPEAK
THE VIEW FROMSOUTHEASTASIA
CULTURAL,STRUCTURAL
DIFFERENCESD TINGUISH
INDIA AND CHINA
W I T HM U C HO FT H EW O R L DW A T C H I NTGH EE M E R G I NEGC O N O M PI CO W E R O FC H I N A '

THERE A R ET W OT H I N G O
S FTEN O V E R L O O K ETD I ST H A TI N D I AI SU N D E R G O I N G
H.EF I R S T

A N E Q U A L LDY R A M A T IECC O N O M ITCV O L U T I O TNH. ES E C O N IDST H A TT H I SG R O W T H

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t i o n i s r e v e r s e dC. h i n ai s b l e s s e w d i t hm a n y a n de x h i b i t i o ni sn d u s t r yh a sb e e ns l o wi n I n -
T h e r ei s n o d o u b tt h a t C h i n aa n d I n d i aw i l l
s h i c hw e r eb u i l tt h r o u g h -
d i f f e r e nfta c i l i t i ew d i ad u et o t h e d e m o c r a c t si ca f e t yv a l v e st h a t
b e d o m i n a net c o n o m ipc o w e r sb y t h e m i d d l e
o u t t h e c o u n t r yb y c e n t r agl o v e r n m e ni nt fr a - a r ei n p l a c et o g u i d ec h a n g eW . h i l ei t m a y
of this century,but in manykeyrespects
structurefundingoverthe past5-7years'As take l o n g e t
r o e f f e c c
t h a n g ei n I n d i at,h a t w i l l
they are quitedifferentfrom one another.
a n e x a m p l ea,c c o r d i ntgo I C C At,h e r ea r e1 2 0 l i k e l yp a yo f f h a n d s o m e il n y thefuture.
T h i si s r e f l e c t e idn t h e p o s i t i o ne a c hh a si n
worldclassconvention centresexpected to
t h e a r e a so f c o n v e n t i o nasn de x h i b i t i o n s ,
b e o p e r a t ign b V2 O 4 O . l na d d i t i o n , t h e 2 0 08 ClydePrestowitz,President of the Economic
w h e r et h e s c o r e c a rids c o n t i n u a l lcyh a n g i n g .
Beijing O l y m p i casn dt h e 2 0 1 0 W o r l d E x p S t r a t e g yI n s t i t u t e
oi n s a i dt h a t ," a l t h o u g h China
In fact,the strengthsof Indiaare very often
S h a n g h awi i l ll e a v e a v e n u el e g a c yt h a t w i i s f a r a h e a do f I n d i aw i t ha n e c o n o m tyh a t
ll
t h e w e a k n e s s eosf C h i n aa n dt h e s t r e n g t h s
e v e nf u r t h e r e n h a n c C
e h i n a ' p
s o s i t i o n
i n t h is twiceas largeandgrowingfaster,it has
e
o f C h i n aa r et h e w e a k n e s s eo sf I n d i a .
M e e t i n gIsn d u s t r Y . v u l n e r a b i l i t io e vs e rt h e l o n gt e r m .T h es a m e
l a c ko f r u l eo f l a wa n dd u ep r o c e stsh a t h a s
India'p s o p u l a t i oonf 1 . 1b i l l i o ni s e x p e c t e tdo
g i t ha s e r i e go f n e w allowedit rapiddevelopment hasalsoledto
overtake C h i n a '1s . 3b i l l i o nb e f o r e2 0 3 Ow , h i l e W h i l eI n d i ai s e m e r g i n w
e x h i b i t i oann dc o n f e r e n ccee n t r e sp l a n n e d corruption a n d s o c i a ul n r e s tA' l t h o u g hI n d i a ' s
t h e p o p u l a t i oinn C h i n ai s a c t u a l l ys e tt o
f o r N e wD e l h iK , e r a l aM , u m b aai n dB a n g a l o r e , d e m o c r a t s
i cy s t e mc a n b e c u m b e r s o maen d
d r o pi n t h e f i r s th a l fo f t h e c e n t u r yw i t ht h e
it stillhasa longwayto 9o before it catches s l o w i t i s s t a b l e "
g e n d e ri m b a l a n ccea u s e db y t h e " o n ec h i l d "
p o l i c yc o m b i n e w d i t ht h e m a l ep r e f e r e n c e u p w i t ht h e s i t u a t i o n i n C h i n aA. s w e l l ,a n y -
w h o h a s b e e n t o b o t hc o u n t r i ew s i l lh a v e M o r ec r u c i adl i f f e r e n c easr ef o u n di n s o c i a l
syndromethat wasin effectfor manyyears. one
p o p u - n o t i c e t
d h e s i g n i f i c a nd ti f f e r e n c ei n
s i n r
f a - s t r u c t u r ea n dg o v e r n a n cC e .h i n ai s s l o w l y
T h i sw i l lu l t i m a t e lcya u s ep r o b l e mos f
evolvingout of widespread povertyto a
l a t i o ni m b a l a n cw e h e nt h e y o u n g s t e rrse s u l t - s t r u c t u r es u c ha s a i r p o r t se, x p r e s s w a yr a s ,i l
n e t w o r k as n dp u b l i cf a c i l i t i etsh a t a r ef u r t h e r n e w p o s i t i o nw i t h a g r o w i n gm i d d l ec l a s s
i n gf r o mt h i ss i t u a t i o n c o m eo f a g e ,a n dw i l l
and a m o r e d e m o c r a t ipco l i t i c asly s t e m .
i m p a c tp o p u l a t i odni s t r i b u t i ocno n s i d e r a b l y . a d v a n c i nagt a r a p i dp a c ei n C h i n aI.n m a n y
r e s p e c ttsh e d e v e l o p m e n o tf t h e m e e t i n g s However, it still has a long way to go in many
ln the areaof infrastructure,the situa-

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r e s p e c t sA. g o o de x a m p l e i s t h e c o p y i n ga n d l a n g u a g ei s a n i s s u ek n o w st,h i s c a n b e t h e India'sdeveloping industries are in far more

patentproblemsrelatedto tradeshowsand differencebetweenselectingand rejecting profitablesectorsand its stockmarkets
p r o d u c t st h; i sh a sb e c o m ea s e r i o u sp r o b l e m a d e s t i n a t i o nA. t t h e s a m et i m e ,o u t s o u r - are considerably betterrun and more
that needsto be resolvedbeforeit can c i n gw i l lc o n t i n u et o d e v e l o pi n I n d i a a , nd t r a n s p a r e nt ht a nt h o s ei n C h i n aE. n t r e -
expectto interacteffectivelywith the restof t h i s w i l la l s os u p p o r td e v e l o p m e ni n t the p r e n e u r s h ri pe i g n si n I n d i aa, n dt h e i r si s a
t h e w o r l d I. n I n d i ao, n t h e o t h e rh a n d e, xist- m e e t i n g s e c t o r- y o u r n e x to n l i n ee v e n t systemthat rewardsthe brightestand sup-
ing regulatorysystemsare bettersuitedto r e g i s t r a t i o on r t e l e p h o n eh o t e lr e g i s t r a - p o r t st h e w h o l ei d e ao f t a k i n gb u s i n e srsi s k .
p r e v e ntth e s ek i n d so f i s s u e sa n dt h i sg i v e s t i o n m a y b e c o n d u c t e di n a s m a l lb u t h i g h T h i si s a c o m b i n a t i otnh a t o b v i o u s lby e n e f i t s
t h e ma d i s t i n cat d v a n t a gien t h e i ri n t e r f a c e t e c ho f f i c ei n B a n g a l o r w e i t h y o u rc o n t a c t b u s i n e sdse v e l o p m e natn, do n et h a t i s m o r e
w i t ho t h e re c o n o m i e s . s p e a k i n gw i t h a n A m e r i c a no r B r i t i s ha c - f a m i l i atro f o r e i g ni n v e s t o rasn dw e l c o m i n g
cent! t o t h e M e e t i n gIsn d u s t r y .
Thisis to a largeextenta productof differen-
cesin government.Indiaalreadyenjoys English u s a g ei s s t i l ln o t w i d e s p r e ai d nChina, It'san acceptedfact that the success of
democratic systemwith a FederalRepublic a n dt h i sp l a c e sa s i g n i f i c a nr e t s t r i c t i oonn m e e t i n gas n de x h i b i t i o nt sr a c k st h e e c o n o m y
a n dP a r l i a m e n t asr y s t e ms i m i l a tro E n g l a n d . i t s p o t e n t i af lo r i n t e r n a t i o n m
a le e t i n qas n d - a n dw i t hb o t ht h e s ee c o n o m i eosn a r o l l ,
A s a r e s u l tt,h e i rs y s t e ma n di n s t i t u t i o nasr e tourism. thesesectorsare boundto expandas well.
b o t hm o r ef a m i l i a ar n dm o r ep r e d i c t a b l e Whatis alreadyclearis that this growth
in termsof howthey operatethan thoseof Thereare alsomajordifferences in the willtakeverydifferentdirectionsin these
C h i n aw h i c ha r es t i l lh i q h l yc e n t r a l i z eadn d respective businessenvironmentsof these two countriesdueto differences in culture,
controloriented. t w o c o u n t r i e sS.e l l i n g
t o t h e C h i n e s ep,a r t i - business practices and whereeachstandsin
c u l a r l yi n t h e i ro w nm a r k e tr,e m a i n sa r e a l termsof factorsrangingfrom publicinfra-
Languageis anotherkeydifference. Dueto challenge for mostforeigners. Therulesare structureto government and business prac-
bettereducational programsand manymore u n i q u ea, n di n m a n yr e s p e c ttsh e n o r m so r t i c e s I. n t h e m e e t i n gas r e a a, s i n a n yo t h e r
overseas graduates, moreIndiansspeakEng- ethicsexpectedby thosemorefamiliarwith sector,the greatestrewardswill go to those
l i s ht h a nd o C h i n e s eg.i v i n gt h e ma d i s t i n c t otherwesterneconomies go out the window. w h o r e c o g n i zteh e o p p o r t u n i t i e- sa n dw h o
a d v a n t a gien t h e i n t e r n a t i o n m a la r k e t p l a c e , I n a d d i t i o nt ,o b e s u c c e s s f iunl C h i n aa l o c a l understand and respondto the differences
p a r t i c u l a r li yn t h e r a p i d l ye m e r g i n g
informa- Chinesepartneris necessary, and this adds t h a t w i l lc o n t i n u e
t o e x i s ta s t h e s e" g i a n t so f
t i o n a ls c i e n c easn ds e r v i c ei n d u s t r i e sl t.a l s o anotherlayerof complexity. Oncepastthis the future"evolve.
a u g e r sw e l li n t h e m e e t i n g b susinesw s ,h e r e initialobstaclehowever, the paybacks are
t h e a b i l i t yt o c o m m u n i c a twei t h p l a n n e r s exceptional - but it takesa lot of experience
a n dd e l e g a t eisn w h a th a se m e r g e da s t h e and expertiseto get it right.
i n t e r n a t i o n laal n g u a goef b u s i n e scso n f e r sa
AIPCCONTACT
DETAILS
big advantage. Thesedifferences are alreadygivinga hint
of whatthe futureholds.Forexample, it sur- Mariannede Raay
A s a n y o f u s w h o h a v es t r u g g l e dt o m a k e prisedmanythat in Forbeslatestlist of the marianne.de.raay@a
ipc.org
w h a ta r e o f t e nc o m p l e xa r r a n g e m e n tfso r world'swealthiest people,12werefrom India WWW.AIPC.ORG
a m a j o re v e n ti n a n e n v i r o n m e nwt h e r e w h i l eo n l yt w o w e r ef r o mC h i n a !

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