The Multipolar World Economy

By Martin Hahn

The global economy currently is undergoing a great transformation in terms of economic structure, power, and influence. The economies that have been commonly called " emerging markets" appear to have finally emerged and are coming into their own in terms of their contributions to global economic and financial activity. The international corporate and landscape and even the shape of the international financial system as they redefine the international economy has become even more important to grasp with this phenomenon engenders, both for the major developing economies at the forefront of this change, as well as for those especially the least developed economies that remain at the periphery. The phenomenon of shifting growth drivers is not a new one, at least from the perspective of global economic history.

What does appear to be genuinely different this time is the hitherto unprecedented importance of developing countries at the helm of this change. Economies like China &India are increasingly assuming an importance in the global growth picture to the advanced countries like US and Japan. From the first principal component of trade, finance, and technology -weighted growth shares measured in constant form of dollars, normalized to the maximum and minimum of the full period. What this translates into the world is increasingly multipolar, and will only continue to be so in the future. In fact, from the perspective of the relative economic size, the world is more multipolar now than it has been in the 60s, and this trend of greater diffusion is set to continue into the future certainly through till 2025.

What is importance to recognize here, however, is that a more diffused distribution of global economic activity need not imply a more balanced distribution of the relative shares of growth contributions does dip down from the highs of the 1970s, but we are living in the midst of what appears to be a nadir.

As we leave the financial crisis of 2007/2008, the consolidation in economic growth coupled with increased economic size of emerging powers such as China and India means that the world actually retreats from the multipolarity in growth contributions that we see today. Now,while some have framed with transition in the language of competition and in the context of the developed world this change should really be thought of more in terms of how the global distribution of world activity and influence is now simply less concentrated. Hence, the story is not so much one of the advanced economy decline or emerging economy might. But a more balanced sharing of tremendous benefits that comes with economic growth.

Put another way, this is the sort of economic convergence in output and incomes that economics have long dreamt about and which has thus been elusive and is now tantalizingly close to being realized at least for the largest developing countries.
The future that a multipolar world hold for developing countries are the forefront of the entire multipolarity phenomenon, their greater involvement in the future direction of the global economy means that greater diversification of growth activity translates to a better world in terms of equality.

Get an affordable life experience degree at http://www.asian-europeanuniversity.com

Article Source: The Multipolar World Economy

Post a Comment

Informations From: Taun17

Previous Post Next Post
  • Quitting Smoking - Win The Good Fight

    By Ian Newton When it comes to my quit smoking clients I ask them to fight for their health and to become true warriors of change. The reason for this is simple. If you try a passive process and expect some outside force to fix your smoking habit then you have a poor chance of success. This includ... Readmore

  • What Is a Dash Diet?

    By Arati Shah DASH stands for Dietary Approach to Stop Hypertension. DASH diet has been clinically proven to reduce blood pressure within 2 weeks in individuals following the diet. It is not only known to help manage the blood pressure but is also designed for weight loss programs, helps to preven... Readmore

  • 7 Tips to Consider When Choosing an E-Commerce Platform

    By Rajib KR Saha Although there are a series of e-commerce platforms readily available today, choosing one among the lot requires utmost caution and is definitely an extremely challenging as well as time-consuming endeavor. Well, instead of feeling helpless and spending money on professional help,... Readmore

  • Best Places to Eat in Rostov-On-Don

    By Zoey Alena Rostov-on-Don may not be a famous destination among culinary enthusiasts but the staggering number of restaurants in the city beg to differ on that stance. These places to eat leave no stone unturned in giving foodie souls a delectable meal that is worth every penny they spend. From ... Readmore

  • Doing Customer Support on Social Media Right

    By Donald Smithon Customer care support is one of the most important aspects of business - ask any business owner. Not only does it help solve issues and help let you know if you're actually doing a good job relating to your customers, but it affects your business's overall branding as well. With ... Readmore

  • Generating E-Way Bills Is Simple Now With New Tally Software

    By Riyaz Tamboli The introduction of Tally e-Way bill and consequently the Tally.ERP 9 software to manage it has relieved the inter-state transporters. While there is plenty of interstate transportation of goods, the e-Way bill should be produced for transporting goods exceeding the amount of Rs.5... Readmore

  • You Can't Sell Snow Shovels in May

    By Larry Galler It's Spring! The birds are chirping, daffodils and other bulbs are exploding out of the formerly frozen earth, snow shovels and snow throwers have wended their way to the back of the storage area, and thought of warm, sunny breezes have replaced memories of snowmen and snowballs. T... Readmore

  • Top Seven Honeymoon Destinations in Greece

    By Bruce Thomsan Greece is a cluster of 6000 islands out of which 227 are inhabited. It can indeed get boggling to someone visiting Greece for the first time. So here we present to you the top seven destinations ensure that you have an amazing honeymoon in Greece 1. Santorini It will seem as thoug... Readmore

  • Seven Ways to Enjoy the Best of Eastern Europe

    By Bruce Thomsan We give you a list of seven of the best places to visit a fantastic experience at your Eastern European holiday. 1. Prague, Czech Republic. Prague is the capital city of Czech Republic. It is like a maze of cobbled stone street, hidden courtyards, and baroque architecture that wil... Readmore

  • How to Enjoy a Valuable Holiday in Mauritius?

    By Bruce Thomsan Being a volcanic island, Mauritius boasts of a range of dramatic mountains ideal for trekking and climbing. You can explore the rich Mauritian culture by taking a tour of its temples, churches, mosques, and other religious structures. But that's not all. The awe-inspiring natural ... Readmore