World Bank: Developing Countries to Surpass Rich Countries' Economic Size by 2015

The Petronas Twin Towers in Kuala Lumpur. Developing countries like Malaysia and the rest of East Asia and the Pacific are leading the world out of the economic crisis, according to the World Bank. Photo by: Judhi Prasetyo / CC BY Judhi PrasetyoCC BY

Developing countries are becoming the new drivers of global economic growth and their collective economic size could surpass that of developed countries by 2015, a group of World Bank economists said in a new book.

Approximately 50 percent of total global growth at present is coming from the developing world, World Bank economists explained in the book “The Day After Tomorrow: A Handbook on the Future of Economic Policy in the Developing World.” The economists urged developing countries to take advantage of their current fiscal positions to promote inclusive growth.

The World Bank publication identifies five factors that account for the steady rise of growth in developing countries, namely faster technological learning, high commodity prices, healthier balance sheets, large middle-classes and more South-South commercial integration.

“The economic horizon of the developing world is promising,” Marcelo Giugale, poverty reduction and economic management director of the World Bank in Latin America and the Caribbean and co-editor the new World Bank book, said in a World Bank press release. “The rebalancing of global growth toward a multiplicity of engines will give developing countries new relevance. It will also change their policy agendas: on average, economic management will be stronger, governments will be better, and the beginning of the end of poverty will be within reach.”

According to the book, growth in developing countries could reach 6.1 percent in 2010, 5.9 percent in 2011 and 6.1 percent in 2012. Meanwhile, growth in high-income countries is estimated to reach 2.3 percent, 2.4 percent and 2.6 percent during the same time periods.

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.