The New Titans

Emerging economies drive global economic growth and thus influence global economic factors including average wages, inflation as well as population growth and migration. For example, emerging economies account for most of the growth in energy consumption and hold almost three quarters of foreign-exchange reserves. With China, India and former Soviet Union nations joining the world economy, the global labor force has essentially doubled. By 2007, China alone could account for 10 percent of world trade. With emerging economies gathering strength, excess debt accrued by the US and any related economic problems could pose less difficulties for the global economy. Over the next 10 years, the International Monetary Fund predicts the pace of growth from the emerging countries to double that of the developed nations. Developed countries that try to protect jobs or impose trade limits will only hasten their decline, suggests this article from “The Economist.” The fast growth will alleviate poverty for millions, while intensifying demand and increasing prices for limited resources such as oil and water. – YaleGlobal