Go Finance Reporting Davos - The analysts see a shift in global economic power that once controlled the Western countries, has now headed to Asia. Statement of the analysts are presented in the opening World Economic Forum (WEF) 2011 in Davos, Switzerland, yesterday.
The meeting was attended by the political elite and businessmen from around the world. Recovery of the economy that continues to improve as a signal that Asia will continue to solidify its position in the future.
Chairman of Wipro, India's leading software company, Azim Premji said, it is the decline of the Western world and the growth of emerging markets. "In 10 years the world economy will emerge, the same or slightly larger than the U.S. economy (U.S.)," the Indian billionaire said this when speaking in Davos WEF panel was quoted as saying by AFP.
China's highest officials at the International Monetary Fund (IMF), Zhu Min said the global economic recovery was driven largely Asian giants, namely India and China.
"In emerging markets, I think the growth is very strong. China will still end up with nine percent, India may be around eight percent, "said former Deputy Governor of Central Bank of China this.
Most of the panelists who spoke on the first day of operation the WEF Davos agreed that the global economy grew significantly healthier than when they met last year. The condition was even approved by Nouriel Roubini, professor at the University of New York who is usually pessimistic about the prospects of the global economy.
"Glass is half empty and full. There are several positive and negative risks, "he said.
Roubini explains, downside risk is the euro zone debt crisis, the recession in the U.S. housing market and higher commodity prices that lead to social unrest in some areas.
In addition, the social gap between the rich and the poor, both in developed and developing countries, will be a key risk in the future. Analysts estimate leads to the growing tensions in North Africa and the Middle East.
Zhu Min said, the world does not give enough attention to it. Many have warned that the attitude of developed countries for ignoring risk emerging markets amid incessant India and China became the center of power in Asia. Chief Executive of WPP, the second largest advertising company in the world, said Martin Sorrell, is currently happening is not only a shift from West to East, but also to the South West.
"This is the decade of Latin America with Brazil holding the World Cup and Olympics. And in Asia, not just India and China, but in countries such as Pakistan, Bangladesh, and Thailand, "he said.
Meanwhile, Indonesia is included in the Asian countries with positive economic growth 2011.Delegasi Indonesia participated in the WEF chaired by President Susilo Bambang Yudhoyono (SBY).
In this forum, the President is scheduled to deliver a special speech on trade and development. Trade Minister Mari Elka Pangestu said earlier, the Indonesian delegation also will maximize the WEF 2011 to attract more interest from overseas investors in the fields of trade and investment with Indonesia.
According to Mari, by participating in the WEF, Indonesia will get some benefit. It was of them is to increase cooperation and collaboration with other state delegations and the international business community. On the other hand, the businessmen and academics who gathered in Davos still admire the wonders of China's economy.
However, they assess, with the incredible surge of export growth driven for 30 years, China needs a new round of reforms as the giant developing countries. China's economy is a manufacturing economy that relies on cheap labor once and not endless. And now they have an aging population.
China valued the success of global trade imbalances have created the destructive economic and trade customers currency. Faced with the possibility of inflation and the asset is increased, a Chinese business leaders in general have been agreed with the need for greater currency flexibility and rely on domestic demand. (GoFinance)
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