Toward A Switchover Of Locomotives In The Global Economy
The recovery in advanced economies is now exhibiting several signs of fragility and the medium-term growth prospects for these economies also look difficult. Could developing economies "Switch over" to become locomotives in the global economy, providing a countervailing force against downward trends? The view taken here says, yes, as long as appropriate domestic policies and reforms are pursued in developing countries. Developing countries as a whole have been growing faster than advanced economies, even before the start of the current global economic crisis. In 2007 and the first three quarters of 2008, as the signs of increasing financial fragility and economic stagnation in the major advanced economies were becoming clear, much was said about a possible "Decoupling" of emerging markets.