Global Development Perspective, Economic Realignment and its Challenges-A Synoptic view

Abstract

Economic development of a country cannot be achieved without the global orientation. The global development is multidimensional and multilateral and it transformed many countries. Emerging Market and Development Economies shifted the geographical landscape and new growth centers have come up and now the paradox is whether these developments are identical with the countries and people. The literature shows that the global economy was expanding with falling unemployment and brought inequality among countries. International cooperation, world tax and migration governance is increasing and it brought new challenges. India and a few developing countries have unique position as a global player in the knowledge based sectors. Technology has changed its trajectory and the robotics and machine intelligence would significantly replace labour in the future. The countries like India and China have grown faster than the OECD average. However, impending ricochet in global GDP growth is doubtful as slow growth and trade tensions are observed in the world. Such global trade tensions may be avoided if the countries respect multilateralism. The current condition of the global manufacturing activity, lower business spending, lesser consumer purchases of durable goods, passive final demand, muffled inflation and trade tensions needs to be addressed. The world output discussed in this paper shows that for the periods 2020 and 2021 it is not favourable for the emerging market and developing economies. The assessment of the global economic situation portrays that the global economic realignment is unfavourable to the emerging market and developing economies in particular and other economies in general. This necessitates for an appropriate policy formulation to contain the declining trend otherwise global equality cannot be achieved and results in furthering of geopolitical and bilateral and multilateral trade tensions in the future.