Disclaimer: It is an academic essay which is not exactly reader-friendly. Corrections have been made for small spelling errors only.

The future ahead seems bleak for Europe. Struck by a euro crisis, much of the region had to be salvaged by massive bailouts and endure painful austerity measures in order to repay growing debts. Gloom pervades much of the United States as well, with the acknowledgement of declining education standards, eroding job competitiveness amidst a lacklustre economy. At the other side of the world however, Asian giants seem to be thriving, with China and India spearing economic growth as well as commanding a greater presence on the international arena. In spite of the trends which have been observed of late, I believe that the fates of both the East and West have yet to be set in stone and can be altered by the choices of these countries in dealing with their problems.

Given the current circumstances, it would be easy to conclude that the decline of the West is certain, especially in the economic aspect. Years of extravagant government expenditure have left most Western governments saddled with debts of stratospheric levels. Greece, one of the worst hit economies in the euro crisis had a government debts to Gross Domestic Product (GDP) ratio of 120%. Even Italy, the third largest European economy, had to contend with a dangerously high ratio of 100% especially after the careless financial management by ex-Prime Minister Silvio Berlusconi. In addition to their unsustainable levels of debt, both Europe and the United States have seen their competitiveness eroding vis-à-vis other global powerhouses. In Britain, there has been a sharp decline in high-end manufacturing, from 22% of total GDP in 1990 to only 12% in 2010. In the United States, the high cost of production as well as the stagnating skill sets of its factory workers have seen an exodus of approximately 1.2 million manufacturing jobs from 2003 to 2010. In order to prop its agricultural industry, which otherwise cannot compete with cheaper producers, the West has routinely dished out export subsidies, with the cotton industry in the United States receiving US$25 billion from Congress in 2010. All these statistics belie a common trend; that in terms of economic performance, the West has not only reached a plateau in development, but has also experienced a fall in their prominence and eminence. The West today is often portrayed as a region plagued by moral decadence and poor fiscal management against the backdrop of their success-hungry and industrious Asian counterparts. This depressing outlook for the West extends to both social and political spheres as well. Even though the austerity measures have been regarded as a bitter necessity, the people of some of these countries have not been able to endure such needed pains. This can be observed by the ousting of ex-French President Nicolas Sarkozy in favour of the more populistic socialist Francois Hollande in the recent French elections this year. The inability of political and social development of and acceptance for measures which can guarantee long-term benefits in the West may be the very reason to believe that the fall of the West is imminent.

This is matched by a general sunny disposition towards fortunes of the East. Despite their vulnerability to global economic fluctuations, both the Eastern behemoths of China and India have performed remarkably well economically in the wake of the worldwide recession with high growth rates of 8% and 6% respectively from 2008 to 2009. This has been attributed to the prudent policies which these governments had implemented such as greater dependence on domestic market to ensure stability and the maintenance of their competitive edge in low-cost but highly value adding manufacturing industries. These giants also have the hardware in place to herald an epoch of their growing dominance. Since the 1990s, China has invested heavily in infrastructure in order to facilitate sustainable economic growth, culminating in the completion of its high-speed railway in 2011. Likewise, the citizens and youths of India have been equipping themselves with knowledge and expertise from both the Information Technology (IT) and engineering fields. Coupled with their proficiency in the world’s professional lingua franca, English, they have found themselves being extensively solicited into the ranks of their counterparts in developing countries. With the flourishing of their economies as well as in human capital and infrastructure, the ascent of the East seems very probable.

Yet ultimately, future success and failures will have to depend on how these countries deal with problems which threaten to inhibit their progress.

For all its brilliance, much of the East has still been plagued by issues which could reverse the trend of their rising fortunes. In China, intellectual property (IP) rights and laws remain a thorny issue for many of its foreign investors. Ford Motors saw 4000 of its trade documents being siphoned into a local firm in 2010 when an ex-employee was retrenched. The subversion of copyrights and patents mean that there are many foreign investors who are unwilling to bank in on China. This can prove to be a roadblock for its growth since China now has to depend on developing its higher value-added industries to propel future economic growth as its reputation as a low-cost manufacturer erodes in the face of rising wages. Furthermore, the one-child has led to a slowing growth in the working population. This means that there will be less labour resources available in the country and subsequently, declining economic output. The political climate may also be perceived as a problem. With the many incidences of crackdowns on political dissidents such as Liu Xiaobo and Ai Weiwei as well as lack of transparency, in the downfall of Chongqing party chief Bo Xilai, politics in China continue to be shrouded in uncertainty and instability. This can adversely impact the country by evoking more revolts and strikes of oppression. India is not spared either. Its messy bureaucracy means that doing business there incurs much red tape and is deemed as inefficient. A permit to open a stall would take as long as 95 days to be approved by the authorities. Furthermore, environmental issues continue to plague the country. This can be observed by the heavy pollution of the Ganges River by factories upstream which poison the waters which most of its people depend on for basic needs such as drinking, cooking and bathing. Because the plethora of problems continue to threaten the rise of the East, its rising eminence cannot be taken as a given.

Likewise for the West, its current challenges cannot be immediately written off as a ticket to impending doom. For the past two centuries, both the United States and Europe have consolidated their powers as one of the top developed countries in the world. Notwithstanding its current economic difficulties, both of these powers continue to domesticate in the global arena, where their influences is only set to grow as global collaboration on pressing issues such as climate change take precedence. This can be seen by how the United Nations continue to confer important stakes and voting rights to even the smaller Western countries like France. In spite of the austerity measures which they face, they continue to grow in clout on the international platform. This can be seen by how both Britain and France spearheaded and led efforts to help the rebels overthrow Libyan dictator Muammar Qaddafi in 2011. Since their roles and responsibilities have continued to grow in the settlement of international issues, the fates of the Western countries cannot be sealed just yet.

Ultimately, what truly determines the destinies of countries is determined by how they deal with the problems today. China has been trying to be more accommodating in its governance and politics as seen by its release of blind legal activist Chen Guangshao and this might be the harbinger of future political openness. Meanwhile, the West has also embarked on a tough journey to reverse its ailing fortunes with the restructuring of its economies as seen by Britain’s newfound efforts to revive its manufacturing industries. I believe that the prosperities of the East and the West are not inversely related, and that with the right choices, both can herald a new era of shared prosperity together.

Examiner Comments: Well written with good balance and coherent arrangement of points. Displaying good knowledge. Only flaws were the exclusive coverage of only India and China.

Only flaw now is exclusive coverage of only Japan.