The Multipolar World Economy
The global economy is currently undergoing major changes in terms of economic structure, power and influence. The economies, commonly referred to as "emerging markets", appear to have finally emerged and are developing in their favor in terms of their contributions to global economic and financial activity. The international corporate and landscape structure and even the shape of the international financial system in redefining the international economy have become all the more important to grasp this phenomenon, both for the major developing countries at the forefront of this change and for those economies Of particular importance is the least developed economies that remain on the periphery. The phenomenon of shifting growth drivers is not new, at least from a global economic perspective.
What seems to be different this time is the unprecedented importance of developing countries at the forefront of this change. Economies such as China and India are increasingly gaining importance in global growth for advanced countries such as the US and Japan. The first major component of trade, finance and technology-weighted growth measures shares in constant dollars and normalizes them to the maximum and minimum of the entire period. What this translates into the world is becoming more and more multipolar and will continue to be so in the future. From a relative economic point of view, the world today is more multi-polar than it was in the 1960s, and this trend of increased penetration is sure to continue until 2025 in the future.
It should be noted, however, that a more diffuse distribution of global economic activity does not necessarily result in a more equitable distribution of the relative shares of growth contributions after the highs of the 1970s. However, we live in the middle of what seems to be a nadir.
If we leave the financial crisis of 2007-08, the consolidation of economic growth coupled with the increasing economic size of emerging powers such as China and India means that the world is actually pulling away from the multipolarity of the growth contributions that we see today. While some focus on the transition in the competitive language and in the context of the developed world, this shift should really be seen as the global distribution of world activity and influence is now less concentrated. Therefore, it is not so much a story of the decline of the advanced economy or the emerging economy. A more balanced distribution of the enormous benefits associated with economic growth.
In other words, this is the kind of economic convergence in production and income that the economy has long dreamed about, and which was therefore elusive and almost feasible, at least for the largest developing countries.
The future that a multi-polar world holds for developing countries is the focus of the entire multipolarity phenomenon. Their greater involvement in the future direction of the global economy means that greater diversification of growth activity will lead to a better world in terms of gender equality.