Global Development Horizons 2011 : Multipolarity - The New Global Economy

The world economy is in the midst of a transformative change. One of the most visible outcomes of this transformation is the rise of a number of dynamic emerging-market countries to the helm of the global economy. It is likely that, by 2025, emerging economies, such as Brazil, China, India, Indonesia, and the Russian Federation, will be major contributors to global growth, alongside the advanced economies. As they pursue growth opportunities abroad and encouraged by improved policies at home, corporations based in emerging markets are playing an increasingly prominent role in global business and cross border investment. The international monetary system is likely to cease being dominated by a single currency. Emerging-market countries, where three-fourths of official foreign exchange reserves are currently held and whose sovereign wealth funds and other pools of capital are increasingly important sources of international investment, will become key players in financial markets. In short, a new world order with a more diff use distribution of economic power is emerging, thus the shift toward multipolarity. The new report serves as a vehicle for stimulating new thinking and research on anticipated structural changes in the global economic landscape. To retain this forward looking orientation and to serve the World Bank Group's mandate of development and poverty alleviation, it is envisaged that future editions of Global Development Horizon (GDH) will be dedicated to themes of importance to the emerging development agenda and global economic governance, including changing global income inequality, increasing economic insecurity, global population aging, and the future shape of development finance.