The world economy is currently undergoing a major transformation in terms of economic structure, power and influence. Economies, commonly referred to as “emerging markets,” appear to have finally emerged and come into their own in terms of their contribution to global economic and financial activity. The international corporate and landscape nature and even the form of the international financial system in the revision of the international economy have become even more important for understanding this phenomenon, both for the major developing countries at the forefront of these changes and for those who developing especially the least developed economies that remain on the periphery. The phenomenon of changing the engines of growth is not new, at least in terms of world economic history.
This time, indeed, the hitherto unprecedented importance of developing countries at the forefront of these changes looks different. Economies such as China and India are increasingly becoming important in the development of global growth for advanced countries such as the United States and Japan. From the first major component of trade, finance and technology, growth rates, measured in constant dollar terms, normalized to a maximum and a minimum for the entire period. What it turns into a world is becoming increasingly multipolar, and will only continue to do so in the future. In fact, in terms of relative economic magnitude, the world is now more multipolar than it was in the 60s, and this trend of greater diffusion should continue in the future, certainly until 2025.
However, it is important to recognize that a more diffuse distribution of global economic activity should not involve a more balanced distribution of the relative share of the contribution to growth, which does fall from the highs of the 1970s, but we live in the midst of what appears.
If we leave the financial crisis of 2007/2008, the consolidation of economic growth coupled with the rising economic levels of new states such as China and India means that the world is actually moving away from the multipolar contribution to growth we see today. Now, although some set the framework for the transition to a language of competition and in the context of developed countries, these changes need to be thought of more in terms of how the global distribution of global activity and influence is now simply less concentrated. So the story is not so much about the fall of an advanced economy, or about an emerging economy. But a more balanced distribution of the huge benefits of economic growth.
In other words, it is the kind of economic convergence of production and income that the economy has long dreamed of, and which has thus been elusive and is now approaching realization, at least for the largest developing countries.
The future that a multipolar world expects for developing countries is advanced for the whole phenomenon of multipolarity, their greater involvement in the future direction of the world economy means that greater diversification of growth activity turns into a better world in terms of equality.