While our nation remains mired in economic uncertainty, sluggish growth, high unemployment, and even higher underemployment — in short, Obamalaise — other nations continue to move ahead. A recent report brings this point home.
Citigroup projects that the pattern of world trade is going to shift dramatically over the next 40years, and not in our favor. Citi’s research indicates that Developing Asia’s share of total world trade, which in 2010 was 24%, will grow to 42% in 2030 and 46% by 2050. Conversely, Western Europe, which had the largest share of total world trade in1990 (48%) dropped to 34% in 2010. That's still the largest share. But by 2030, that will dwindle to only 19%, and by 2050 it will be a meager 15%. North America will see similar declines.
Citi projects that China will become the biggest-trading country by 2015, surpassing the U.S. — the current leader — within only four years, and will stay on top for the foreseeable future. But even more remarkable is the forecast that the US will also be overtaken by — India. Even though India was not even in the top 10 largest trading countries in 2010, by 2050 it will become the second largest.
Now, research projections can be wrong — for one thing, they cannot for see exogenous events (e.g., what if China and India get into a major war?). But the trends are pretty clear.
And the causes of these trends are also clear. One cause of trade growth (among others) is the willingness to trade freely with other nations. Asia has embraced free trade with a vengeance, while Obama has done his best to block all progress on the issue, even going so far as to reverse the free trade agreements we have, simply to please his union bosses. For Obama, it is as if Adam Smith never existed. This is taking its toll.