Karl Wilhelm Nahr (wnahr) wrote,
Karl Wilhelm Nahr

Wake up call but it is too late: Globalization works - They work

“Since their industrial revolutions in the 19th century, the rich countries of the ‘first world’ have dominated the global economy. By one measure at least, that era may be over. According to estimates by The Economist, in 2005 the combined output of emerging (or developing) economies rose above half of the global total. This figure has been calculated from the IMF`s World Economic Outlook database. We have adjusted the IMF`s numbers in two ways. First, we have taken account of China`s recent upward revision of its GDP by 17%. Second, we include the newly industrialized Asian economies (South Korea, Taiwan, Hong Kong and Singapore). We have used the IMF`s method of converting national GDPs into dollars using purchasing-power parities (PPPs) instead of market exchange rates. The latter can distort the relative size of economies, not only because currencies fluctuate, but also because prices are lower in poorer economies (so a dollar of spending in China, say, is worth a lot more than it is in America). (...) But even when measured by market exchange rates emerging economies are flexing their muscles. Last year, their combined GDP grew in current dollar terms by $1.6t, more than the $1.4t increase of developed economies. (...) Of course, with half the world`s output but five-sixths of its population, emerging economies still have incomes per head far lower than the rich world. But by a wide range of gauges they are looming larger. (...)”
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