America’s economic adversaries

Tom Friedman writes another piece advancing his new thesis – that Bangalore is a bigger threat to America tha Bin Laden.

The bottom line: we are actually in the middle of two struggles right now. One is against the Islamist terrorists in Iraq and elsewhere, and the other is a competitiveness-and-innovation struggle against India, China, Japan and their neighbors. And while we are all fixated on the former (I’ve been no exception), we are completely ignoring the latter. We have got to get our focus back in balance, not to mention our budget. We can’t wage war on income taxes and terrorism and a war for innovation at the same time.[NYT]

There has been a body of opinion that suggests portraying India as an adversary is counterproductive to India’s interests. But I think it’s giving India’s image a tremendous boost. As I commented on one of Dan Drezner’s recent posts, by all accounts Bangalore is no match for Silicon Valley today but the fact that the Americans are making the comparison propels it into a league it could not have hoped for even ten years ago.

1 thought on “America’s economic adversaries”

  1. A little competition doesn’t hurt anyone, especially the United States. When the United States lost its status as a manufacturing leader, it became king of computer hardware, software, and information technology. Now it is about lose that crown as well to upstarts like India.

    All it will do now is become more innovative, pioneer some new technology and dominate it until the process starts all over again.

    In the end, it’s all about staying ahead of the curve.

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