Emerging Economies: Rise of east
The emerging economies have a share of 38 percent of the world GDP.The emerging markets account for 80 percent of the world growth.The rise of the poor and third world countries into the world economic stage is the discussion story for analysts today.
China is attracting the largest FDI in the world. China has emerged as the largest car market in the world overtaking United States of America.China’s Growth story has been an impressive one.There is a major shift in demand from the industrialized to the emerging markets of Asia. The consumption led growth is propelling these new economies.
Industrialized world faces several problems of slow down of growth, increase in the aged population etc.Sovereign debt and Fiscal policy issues are dragging down growth in European countries.
In this background,the Finance Minister Mr Chidambaram made a excellent and eloquent speech at the Harvard University on emerging economies which is of great contemporary significance.The finance minister started with the famous quote of Kipling East is East and West is West and never the twain shall meet.
This article will be of great information for those preparing for IAS exam with factual and analytical information.Read the full text of the speech of Chidambaram on The Rise of the East: Implications for the Global Economy