##### World Bank predicts that developing countries become the largest sources of capital

Admin Sat May 18, 2013 10:54 am


Posted on: 05/17/2013 14:55:17

Category: Economic	Written by: kawthar	Views: 40
Washington / with / follow-up: World Bank predicted that the percentage of global investments, which went to developing countries, significantly in the next twenty years, with emerging economies to catch up with the rich countries and the increasing integration of financial markets. The bank said in a report that these countries and other countries with large populations and small peoples are not expected to become also the largest sources of capital as China and India will become the largest investors in the world in 2030. And a shift in the map of savings and investments have significant implications for everything from currencies that will dominate the global market to the rise of new financial centers and patterns of capital flows and investment priorities. But Kaushik Basu, chief economist of the World Bank says that the decision-makers are still not ready to change and focus instead on what will happen in three months or six years. Basu told reporters ahead of the release of the report "The big question that should be all of our concern is what will happen to the savings and investment, the main engine of growth and development." He continued, "In a sense the global economic turmoil that we are experiencing today are some of the early indications on the turbulent period that will be witnessing the world." Predicted by Standard & Poor's earlier this week that exceed the borrowing needs of Chinese companies is the financial needs of their U.S. counterparts in the next two years. And by 2030, will direct 60 cents of every dollar invested in the world's developing countries, which is a big change from 20 cents per dollar in 2000. China will constitute 30 percent of the total investment activity and the United States 11 percent and India seven percent. These projections assume that the global economy will grow by between 2.6 and three percent per year on average over the next two decades, while emerging economies grow by between 4.8 and 5.6 percent annually. http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http%3A%2F%2Fwww.mustakbal.net