The world is witnessing a chaotic transition to uncertainty. While there is a profound transformation in the balance of global economic power, the lack of leadership has created a serious vacuum.
Not much more than a decade ago, the emerging economies — China, India, Indonesia, Turkey, Brazil, Mexico, South Africa, Vietnam and others — were still little more than global economic minnows. In the course of the last decade, the share of world GDP of the three main emerging economies — Brazil, China and India — has doubled. Not only have the emerging economies surged, they have also become increasingly interconnected. South-South trade, aid and investments are booming.
The surge of the emerging economies has been all the more marked since the recent global financial crisis. The woes of the erstwhile established economic powers — the European Union, Japan and the United States — stand in stark contrast with the high growth rates and levels of confidence of the emerging economic powers. From Sao Paulo to Istanbul to Jakarta there is a buzz that reflects recent achievements and envisages far more.