Look and learn from developing world – Zoellick

LONDON, May 25 (BestGrowthStock) – The world’s developed nations
should follow the example of the developing word and boost
growth if they are to avoid a “lost decade,” World Bank chief
Robert Zoellick said in a newspaper column published on
Tuesday.

Writing in the Financial Times Zoellick urged leaders of
developed nations to take note of developing countries who are
introducing regulatory reforms to encourage private sector
growth and ensure a stable recovery.

“They (developed countries) need to seize opportunities
from growth in developing countries to avoid their own lost
decade.”

“Last year as developed economies focused on Keynesian
changes in demand, Asia-Pacific economies were advancing
reforms especially in services to generate higher growth,”
Zoellick wrote.

“As developed economies focused on financial regulation and
a broader regulatory movement, Asians were considering how
deregulation might foster innovation and jobs,” he added.

The World bank has forecast growth in developing countries
of about 6 percent this year and next — more than double that
of high-income nations.

Zoellick pointed to countries throughout the developing
world that have improved their growth prospects by investing in
infrastructure to raise productivity.

According to a World Bank study of 4,000 Indian companies,
reforms in banking, telecoms and transport have helped improve
productivity, Zoellnick said.

“To avoid a decade-long work-out with political and economic
risks the world needs stronger growth in developing and
developed countries. We are seeing a shift towards a new
multi-polar global economy, with better prospects in developing
countries than in developed ones,” he wrote.

Zoellick urged European policymakers, currently battling a
debt crisis, to look to the developing world to make sure they
learn the correct lesson from the financial crisis.

“The 750 billion euro package to defend the euro buys time.
But it is not enough. So far, the world has focused on fiscal
contraction and debt, but these are only half the story,”
Zoellick wrote.

“The world and Europe also need a return to robust growth.
Without it the fiscal adjustments will be more painful and the
politics more unmanageable.”

Stock Market Advice
(Reporting by Caroline Copley; Editing by Carol Bishopric)
([email protected]; +44 20 7542 7939))

Look and learn from developing world – Zoellick