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.