Shifting Geo-Economic Power
Rising Powers’ Capacity to Economically Adapt to Inadequate Demand Is Speeding Up the Emergence of a Multipolar World
Marios Maratheftis, Standard Chartered Bank
Since the global financial and economic crisis, the main economic problem facing governments around the world is inadequate demand. While emerging markets are showing signs of successfully adapting to this new reality – by boosting domestic demand, thereby reducing their reliance on exports to drive growth – the outlook is less encouraging in the United States and, especially, in Europe. If emerging economies continue to be better at responding to weak global demand than advanced economies, the transition towards a multipolar world could happen more quickly than many had anticipated. Such relative strength of emerging markets could lead to a greater regionalization in trade, investment flows and political cooperation and a shifting geo-economic and geopolitical landscape.