Author: Andrea Goldstein, Nicolas Pinaud, Helmut Reisen, Xiaobao Chen.

With the integration of China and India – the “Asian Drivers” – in the world economy gaining momentum, it is ever more manifest that economy and polity in poor countries will be affected in various, complex ways. The sheer size of the Asian Drivers, their phenomenal rate of growth, their hunger for natural resources, and their growing economic and political power ensure that they will re-shape the world economy and influence the rules of the game. Their growing presence is likely to transform past relationships in a number of key respects, providing both competition and opportunities not just to the major trading partners in OECD countries, but also to developing countries and other emerging economies. Therefore, innovative policy responses to the Asian Drivers have to be devised. And they will be needed for the long term, as the giants’ rise is unlikely to be only transient (OECD, 2005a) .