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The rapid rise of China and India is reshaping our global economic and environmental systems, raising major issues of stability, governance, and sustainability. This book develops a framework that shows the interdependence between economic size, trade, finance, technology, environment, security, and global governance. The author uses this framework to provide data on the speed of global power shifts and to trace the implications for nations worldwide. Specifically, as the book shows, China and India's unchecked growth has the potential to ignite trade, resource, cold, and conventional wars. Moreover, these nations could set in motion monumental challenges related to climate change. The author argues that the current international governance system is not actively trying to defuse the challenges of these frictions. The major powers, including China and India, must do more to address the gathering storm. Developing sustainable economic and social relationships will be a most difficult charge, but the cost of putting off reforms will be lower global welfare. The author discusses the starting points for initiating these changes. The book will be of interest to students and researchers of Development Economics, International Relations and Asian Politics. Table of Contents List of Figures List of Tables Preface Acknowledgments List of Abbreviations 1. Rising Powers Why This Book? The Rise of These Two Powers Is Stressing the Global System Structure of the Book: Review the Past to Get Insights into the Present and the Future 2. Insights from History of Power Shifts and Growing Interdependence Conflicting Theories Provide Relevant Perspectives This Book Uses a Broad Framework to Analyze and Track Power Shifts 2000-Year Overview of the Rise and Decline of Power Shows Frictions Spiral into Wars and Changes of the Global System There Have Been Significant Shifts in Economic Size Even in the Last 30 Years Conclusion: The History of Power Shifts Is Not Reassuring 3. Understanding the Rapid Rise of China and India Basic Comparisons Some Similarities in Otherwise Very Different Histories A Macroaccounting for the Differences in Growth The Type and Role of Government Two Contrasting Growth Strategies Acquiring Technology from the Rest of the World Conclusion: Both Countries’ Growth Is Largely Driven by Technological Catch-Up and Participation in the International System 4. Positive Growth Prospects for China and India The Impact of the 2008–2009 Financial Crisis on China and India Long-Term Projections for Growth of China and India China and India Face Daunting Challenges Both Countries Are Increasing Their Competitiveness Part of Their New Competitive Advantage Is Their Growing Critical Mass in Higher Education They Are Also Moving from Imitation to Innovation Both Countries Are Likely to Continue to Grow Much Faster Than the World Average for the Next Two Decades 5. Growing Economic and Geopolitical Impact Positive and Negative Impact Through Increased Trade From China’s Trade Surpluses to Global Imbalances Growing Foreign Direct Investment (FDI) A Tilted Technology Playing Field Growing Geopolitical Impact of the Rise of China 6. Environmental and Natural Resource Impact China and India Are Resource Poor The Rapid Growth of China and India Combined with Their Large Populations Is Creating Global Environmental Sustainability Problems China and India Will Account for the Majority of Global Increase in Energy Demand and CO2 Emissions from 2008 to 2035 There Is a Stalemate on Action to Deal with Climate Change Because It Is a Zero-Sum Game Technological Innovation Is a Way to Break the Climate Change Deadlock, but Not Enough Investments in R&D Are Being Made There Is Also Increasing Pressure on the Environment from the Growth of Other Developing Countries 7. Power Shifts and Rising Frictions Have Implications for the Global System and the United States The Rapid Rise of China and India Is Putting Pressure on the Global Governance System Growing Friction Areas Are Beyond the Current Capabilities of the International System Risks That Frictions May Lead to Greater Problems Evolution Within the Existing System or the Rise of a New System? What Can/Should the United States Do? 8. How Will the World Adjust to the Swift Ascent of China and India? Alternative Scenarios Moving Toward a More Sustainable System Implications for Other Developing Countries Vary Conclusion: The Main Powers Need to Take Stronger Actions to Ensure a More Sustainable and Equitable Global System Notes References Index