Editor’s Note: Asian economies are seeing strong, stable growth and leading the world out of the recession. In the December 2009 issue of the IMF’s Finance & Development, Eswar Prasad discusses how Asian emerging markets can improve their economic welfare by rebalancing growth toward domestic demand.
With the increasing importance of Asian emerging markets in the world economy, rebalancing growth in developing Asia toward more reliance on domestic demand and less on exports is an important component of the global effort to stabilize world financial and economic systems.
Asia’s export-oriented growth strategy played a role in the global imbalances that have characterized the international economy in recent years and played some role—though how much is hotly debated—in contributing to the global economic crisis.
I don’t think there is any room [for TPP to pass in the lame duck session of Congress. Nevertheless, the other 11 countries should] move forward in renegotiating at least just one clause of the TPP [so the pact can] come alive [without U.S. participation].