Asian economies transform global scenario

The ongoing transformation of the global economy, with Asia as an economic powerhouse, has been accelerated by the crisis, said Strauss-Kahn, managing director of International Monetary Fund (IMF) addressing the closing ceremony of Asian Economies in Shanghai yesterday.
Asia stands at the helm of the global recovery, he said adding that its policy choices are important for its own sake, and also for the global economy as a whole.
The conference focused on macro-prudential policies, which deal with the intersection of the real economy and the financial sector, providing a birds-eye view of the entire system.
"In our interconnected world, these policies will become increasingly important, both in shifting seamlessly out of the crisis and in moving toward new sources of growth," Strauss-Kahn added.
Asia’s economic performance over the past few decades has been nothing short of remarkable. "Driven by rapid and steady growth, the region now accounts for about a third of the global economy, up from under just a fifth in 1980, according to him. "On current trends, Asia’s economy could be as large as the US and the EU — combined — by 2015."
But growth must benefit everybody, he opined. "Asia has made tremendous progress with poverty reduction, with China alone pulling hundreds of millions of people out of poverty over the past few decades. Such a feat has never before been accomplished in the entire history of human civilization."
He praised the Asia for being resilient during the global financial crisis. "Asia had not made the mistakes of other countries by piling up debt or using complex financial engineering that magnified risk," he said, adding that banks had built sizeable capital cushions, followed prudent lending practices, and had limited exposure to toxic assets.
Policymakers had internalised the lessons of the past, embracing sound macroeconomic and prudential policies.
He thanked solid foundations and a quick and forceful policy response of Asian economies that have become the launching pad of the global economic recovery.