Power Transition process in two
great countries, the US and China in terms of size, economic and military might,
has created enthusiasm across the world. Change of leadership in White house
and Great hall will definitely affect future economic and political path of
direction of the world. So, from businessmen to politicians, all glued their
eyes on it. This year it was a rare instance of coincidence that the leadership
is getting changed in both countries at the same time. In the US, the leadership
is elected while in China there is a process of selection by party members of
Communist Party of China (CPC). On 6th November the Americans
elected there leader Mr. Barack Obama when in China, all is set for Xi Jinping
to take sit. But both leaders may not have chance to cherish their achievement
as already they are shadowed by daunting challenges of numerous crises. Let’s
see those respective challenges of two leaders of two great states.
For Mr. Obama, economic recovery
by creating jobs for millions is the biggest challenge. In his prior term Obama
showed his successes in health care law, Wall Street reform, and stimulus bill.
Upcoming tenure will be a tougher one for him as said by many economic analysts.
Tackling the deficit, increasing worker productivity and optimizing incentives
system for the Americans are a few to denote the challenges. At the same time,
fiscal consolidation is no easy task. Bill Clinton, the last president to run a
budget surplus, was benefited enormously from productivity and GDP growth
spurred by the first tech boom. Unfortunately, president Obama will have no such
luck. Instead, he will return to the White House faced with stagnating
productivity growth. Foreign policy challenges are another which will be no
easy as well. Popular media in the US are claiming that the Obama
administration will have five major foreign policy challenges ahead. They
include- 1. Rethink defense in an era of economic restraint. 2. Contain the
euro zone crisis. 3. Mend the fence with China. 4. Confront border violence and
immigration. 5. Encourage innovation and global competitiveness. But still
there are many immediate challenges. Syria crisis; irresistible Iran with
nuclear crisis; conundrum in Afghanistan and Iraq and continuing deteriorating
relationship with Pakistan will through Obama administration in an ordeal. John
Bolton, former US ambassador to UN, told that Obama administration has less
focus on foreign policy. That’s why reelection of Obama for consecutive second
term will give the enemies of US an opportunity to breathe a sigh a relief.
Like the United States, China is
also at a turning point, and though the specifics differ, the crux of the
problem is the same: major structural change is critical to sustained future
growth and stability of the country. Beijing's economic strategy must be
drastically overhauled. The Hu Jintao and Wen Jiabao leadership, recognizing
the danger, in March 2011 formally adopted a new development strategy that
stresses increasing household consumption, reducing reliance on exports,
expanding services, and moving to more innovative, less resource-intensive
manufacturing. A study released this February by the World Bank in conjunction
with the State Council Development Research Center, one of China's top
government think tanks, confirmed the importance of this new strategy. But
little serious reform has happened to date.
Overwhelming controversies of
corruptions among top leaders of the government and party already have raised
the questions of legitimacy of the government and party. Outgoing president Hu
Jintao warned in his last speech about corruptions among party leaders which
may eat upon the glorious achievements of the great country.
Many scholars deem that incumbent
president of China, Xi Jinping will have to face more challenges than that of
Obama. Unlike Barack Obama, for instance, the incoming leader Xi Jinping won't
be able to choose most of his own team.
On foreign policy side, China is
still working to strengthening its position within and in its door step region.
China still portrays itself as a Third World country that pursues "an
independent foreign policy of peace." But the ‘foreign policy of peace’
seems no more peaceful in the context of developments taking places centering
South China Sea and Island row against Japan. Burgeoning economic and military
might is making China more and more arrogant towards its neighbors. But growing
US naval presence in the Asia pacific forced Chinese security thinkers to
shuffle its security strategy. Last President Hu Jintao warned in his swan song
that China needs to concentrate more to be a naval power in the world. This
urge was given definitely, denoting US move.
Two leaders Mr. Obama and Xi
Jinping have lots of jobs to do ahead, no doubt. Observers will see their performance
critically, because many wellbeing of the tiny earth depends upon their
success.
