Fast-developing Asian economies are bringing the dream of a middle-class lifestyle — cars, homes, consumer goods and leisure time — within reach of millions of their citizens. As more people set their sights on reaching this goal, infrastructure throughout the region will need to be developed and maintained to support the shifting socioeconomic trends. An important part of this shift is the continuing mass migrations of people from rural to urban and suburban areas. Transportation networks, electrical grids, water systems, ports and more will be developed and upgraded in order to support the changes in Asia, and China and India provide a good illustration of these trends.

After the recently concluded national elections in the world’s largest democracy, there is just cause for controlled optimism and cheer. In a country that is more than twice the size of the European Union and which speaks more than 50 languages and numerous other dialects, 417 million people turned up to vote for a new government and choose from a bewildering array of 300 political parties. The result was a clear majority for the Congress Party–led coalition — a party with a left of center approach. In many ways, this verdict is being viewed both politically and economically as a game changer for India.

There has now been a concerted attempt on behalf of the G20 group of leading nations to stabilize the global financial system and, in the case of the United States, to stabilize the housing market. While we believe to a large degree that the efforts to stabilize the global financial system — which have included fiscal stimulus measures, capital infusions and mark-to-market accounting rules — will be successful, we are less certain as to the prospects for the U.S. housing market.