Experts: Developing countries will change the world's economic geography

Participants of St. Petersburg International Economic Forum agreed that developing countries will change the world's economic geography, Tengrinews.kz reported. Kazakhstan Minister of Economic Development and Trade kairat Kelimbetov took part in the session called Developing markets as a determinant factor of the new world economic discipline. He noted that developing and developed countries cannot collide with each other. “We have to help each other,” Kelimbetov said and reminded of Chinese support to Central Asian countries during the crisis. Comparing the world economic system, with cycling, head of Kazakhstan Cycling Federation Kairat Kelimbetov told about “new leaders” and “new economies”. Chairman of the Board of Global Counsel Peter Mandelson said that there will be a moment when management of the world financial institutions (like the IMF and World Bank) will be given to developing countries instead of Americans and Europeans. Currently, according to the publicized information, the level of the BRIC countries influence in the IMF is 10 percent. The participants agreed that this value has to be higher. The share of the BRIC countries in the world GDP reached 50 percent in 2010. “We cannot underestimate advantages of the national currency for improvement of trade, as use of dollar as a reserve currency requires big efforts to hedge the funds. Use of national currencies would help solve these issues,” said CEO of Hong Kong Monetary Authority Norman Chan. According to Luciano Coutinho (Brazilian Development Bank (BNDES), there is a threat that the world is going into a deeper recession. And developing countries will become a driving force of the world economic growth. Luciano Coutinho expressed his confidence that developing economies will be able to demostrate growth rate of more than 6 percent a year. This will change the economic geography of the world, the expert said. The participants discussed the need for of multi-party negotiations under international organizations. Chief Executive of China Development Bank Di Weiping noted that it is necessary to develop cooperation in infrastructure, power engineering, mineral resources and ecology. According to Weiping innovations in financial sector and payments in national currencies are required. By Maksim Popov