Stephen Roach on China and India as victims of the euro breakup

China and India could be the next victims of the euro crisis if they don't revise their economic policies, writes economist Stephen Roach in the business paper Jornal de Negócios: "While China is in better shape than India, neither economy is likely to implode on its own. It would take another shock to trigger a hard landing in Asia. One obvious possibility today would be a disruptive breakup of the European Monetary Union. In that case, both China and India, like most of the world's economies, could find themselves in serious difficulty. ... Seduced by the political economy of false prosperity, the West has squandered its might. Driven by strategy and stability, Asia has built on its newfound strength. But now it must reinvent itself. Japanese-like stagnation in the developed world is challenging externally dependent Asia to shift its focus to internal demand. Downside pressures currently squeezing China and India underscore that challenge. Asia's defining moment could be hand."

» full article (external link, Portuguese)
More from the press review on the subject » International Relations, » Economic Policy, » Economy, » Europe, » China, » India