#44: third world rising
The recent issue of The Economist reflects on the growth of the developing countries – it's implications for these countries, for the developed countries, and the world economic order that is being challenged everyday. See the linked article titled "The New Titans".
This report coincides with the World Bank-IMF Annual Meetings in Singapore. It is a timely reminder that all is not hunky-dory in the scheme of international trade, commerce, and economics. The institutions and norms are anachronistic; they reflect the world of 1940s in 2006. These systems have served us well for most of the last 60 years. But their relevance now is being hampered by their own structure.
In case you wonder "why should we care", it's because the globalised economy is growing faster – at rates unprecedented, outstripping even the industrial revolution, and affecting more people than ever before. Plus most of it is happening beyond the borders of the traditional power-houses. If these inequities and imbalances are not addressed now through a gradual adjustment process, the pains of unexpected upheavals and breakdowns in future may be catastrophic. We've all heard the word "contagion".
It is tough to make changes. The ones with power will resist any erosion. And those seeking greater prominence will always seek more. In the words of Bill Clinton, "It's a tough sell" on either side. But turning a blind eye and pushing it under the rug is not really an option. The article gives a fair evaluation of what's at stake.
This report coincides with the World Bank-IMF Annual Meetings in Singapore. It is a timely reminder that all is not hunky-dory in the scheme of international trade, commerce, and economics. The institutions and norms are anachronistic; they reflect the world of 1940s in 2006. These systems have served us well for most of the last 60 years. But their relevance now is being hampered by their own structure.
In case you wonder "why should we care", it's because the globalised economy is growing faster – at rates unprecedented, outstripping even the industrial revolution, and affecting more people than ever before. Plus most of it is happening beyond the borders of the traditional power-houses. If these inequities and imbalances are not addressed now through a gradual adjustment process, the pains of unexpected upheavals and breakdowns in future may be catastrophic. We've all heard the word "contagion".
It is tough to make changes. The ones with power will resist any erosion. And those seeking greater prominence will always seek more. In the words of Bill Clinton, "It's a tough sell" on either side. But turning a blind eye and pushing it under the rug is not really an option. The article gives a fair evaluation of what's at stake.
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