Decentralization of Economic Power
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The time has changed for the world’s superpowers to play their respective supremacy in the field of economy. The importance of the developing countries economies in the present day world is rising very fast. Both in terms of size and weight the contribution of the developing countries is very note worthy.[br]
The time has changed for the world’s superpowers to play their respective supremacy in the field of economy. The importance of the developing countries economies in the present day world is rising very fast. Both in terms of size and weight the contribution of the developing countries is very note worthy.[br]
According to the World Bank report, the developing nations account for 20 percent of the global GDP and 26 percent of world trade presently. According to the statistics, there was a total $47 billion of FDI betweendeveloping countries in 2003, which was up from $14 billion in 1995.
In the year 2003, that total investment accounted for 37 percent of the total foreign direct investment in developing countries. In case of trade, developing countries rose to $562 billion in 2004, up from $222 billion in the year 1995. The FDI among the developing countries originated with middle-income country firms and is invested in the same region.
In case of the economic growth the world GDP increased by 3.6 percent in the year 2005.[br]
Out of which, the developing nations led the way with GDP growth of 6.4 percent and high income countries, at 2.8 percent in the same year.
The Global Development Finance report in the year 2006 says that the net private capital inflows to developing countries reached high level of US$491 billion in the year 2005. The foreign direct investment from developing countries to other developing countries was estimated is in the order of $47 billion.
Though the world is suffering the problem of rising oil prices and volatile expansion, still the developing nations are experiencing a better platform for operating. The growth rate of thedeveloping countries of the world is more satisfactory in comparison to the others. Though the cases for the Latin American and the Caribbean are a matter of concern, still it is expected that the region will grow by an average of 3.8 percent.
Moreover the present world economic scenario truly depicts that the economic concentration is changing and is more favorable on the part of the developing nations.
