Emerging Economies : The Global Economic Growth

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The dominance of the traditional global economic powers has been challenged in the past two decades with the rise of a number of countries known as Emergent Market Economies (EMEs). These countries already account for a substantial amount of the world economic output and have been the major force behind the global economic growth in the last decade. The BRIC countries (Brazil, Russia, India and China), the largest contributors to this growth, represent a greater share of the economic growth than the G7 countries (Michaelson, 2010). Between 2001 and 2013 the economic output of non-developed countries doubled from almost 20% to 39% and is expected to exceed 41% by 2019. (IMF, 2014). This doesn’t mean that the developed economies of the world have been eclipsed. Far from it, the traditional economic powers still maintain a disproportionately large influence in the global economic landscape. However, the rapid progress of the emerging economies has changed the dynamics in such a way that traditional power imbalances are receding fast. The situation is best described by President Barack Obama’s speech to students at the St. Xavier College in Mumbai in 2010, where he said “The fact of the matter is, for most of my lifetime, the U.S. was such a dominant economic power. We were such a large market. Our industry, our technology, our manufacturing were so significant that we always met the rest of the world economically on our terms. And now, because of the incredible rise of India,
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