WILL ASIA SAVE THE GLOBAL ECONOMY?

ASIA: SAVING GRACE OF GLOBAL ECONOMY?

Suvendrini Kakuchi (IPS)

Eurasia Review, October 14, 2012

Developing countries – ­relegated to the sidelines of the West-led postwar expansion – have emerged as the saving grace of the global economy against a backdrop of calls for a new economic model that can ease the ravages of globalisation and address the lack of confidence in market-based systems.

Indeed, supporting economic growth in developing countries in a way that expands domestic productivity and stimulates global demand has been a core message at the annual meetings of the World Bank and International Monetary Fund (IMF) underway in Tokyo this week.

Financial leaders and influential policymakers have also identified the importance of investment in infrastructure and technology transfer in order to boost sustainable growth in developing economies.

“The envisaged global superhighway has not realised enough growth in the world,” said IMF Managing Director Christine Lagarde, pointing out that economic expansion is currently being recorded mostly in developing countries.

Speaking at a discussion on globalisation here, Lagarde says the key economic challenge today is the trend of decreasing job opportunities for youth, suggesting that nations can help each other in meeting these challenges.

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