The Growing Importance of Emerging Economies the Globalised World and its Implications for the International Financial Architecture
Speech by Jean-Claude Trichet, President of the European Central Bank delivered at the Tenth L. K. Jha Memorial Lecture, organised by Reserve Bank of India, Mumbai on November 26, 2007.
The consultations involved both mature and emerging economies, including the euro area, the United States, Japan, China and Saudi Arabia, again illustrating the fact that large current imbalances are no longer an issue for mature economies only, but a truly global issue. We at the ECB welcomed these discussions as a way to foster the implementation of the agreed strategy to address global imbalances. Evidently, these discussions are also of relevance to India. Large current account imbalances worldwide go hand-in-hand with sizeable cross-border capital flows. India has been confronted with challenges posed by strong capital inflows. This is why addressing imbalances is in the interest of the international community as a whole.......
We have learned indeed that the world economy is changing constantly. The emerging economies, which played a relatively modest role in the global economy 20 years ago, occupy a far more important place today, but one which will be dwarfed in importance by their role in the future.