Emerging economies need greater assistance from the international community to reach income levels comparable with developed countries, International Monetary Fund First Deputy Managing Director David Lipton said on Tuesday, Sputnik reported. He noted that China will continue to lead global growth, while India has potential to play a similar role. “Greater efforts are needed to help emerging and developing economies get back on an accelerated convergence path,” Lipton stated at Peterson Institute for International Economics in Washington, DC. The IMF representative explained that key emerging markets are no longer catching up with the income levels of advanced economies. “This seems at odds with the promise of globalization.” He argued that collective action, including stronger financial safety net, managed capital flow volatility, and greater transfer of technology could help reverse the tendency. Together, these countries could become a new engine of growth. For example, 6% annual growth in 10 to 15 countries with a starting total GDP of $4 trillion would add more to the global economy than the eurozone growing at potential.”
