Greece’s debt troubles have captured the world’s attention, and headlines, in recent months. Even after the country’s unprecedented bailout by the European Union and the International Monetary Fund, angry protests in Athens raise the question of whether Greeks will accept years of painful austerity rather than default on their obligations. The crisis has split Europe’s political leaders and prompted German politicians to lash out at speculators and impose curbs on short-selling. Suddenly, the future of the euro seems in doubt, and the fallout in financial markets risks tipping Western economies back into recession.
Less visible but no less important, something equally dramatic — and positive — has been taking place halfway around the world. China’s economy has continued its impressive recovery, expanding at a double-digit pace so far this year. The country is now acting as a locomotive for the global economy, much as U.S. consumers did in years past. In the first four months of this year, Chinese imports surged by 60 percent, or $157.6 billion, an amount that’s nearly half of Greece’s gross domestic product. “Every eight months China’s importing a Greece,” says Jim O’Neill, global chief economist at Goldman Sachs Group in London.
China and Greece may be extreme examples, but their differing fortunes reflect a much broader shift in the balance of economic power in favor of the world’s emerging-markets countries. The shift has ....