Table 1 on the contribution of major economies to World growth during the past three decades encapsulates succinctly the point about global change and credibility. In the decade of the 1980s, the US and Eurozone + UK contributed over one-fifth each with Japan contributing about one tenth. In the decade of the 2000s the contribution of each of these had declined sharply with the USA contributing less than the 10% contribution of India, and all three together contributing about half that of China. The contribution of the Eurozone + UK has declined progressively from 20.6% in the 1980s to 17.3% in the 1990s to 6.4% in the 2000s. This reflects a fundamental transformation of the world economy and an emerging shift in economic power. Unless this shift in economic power is reflected in the IMF an institution for monitoring/managing the global economy, it is not difficult to imagine it going the way of other UN institutions that have completely lost global credibility and are increasingly being bypassed.
Table 1. Structural change in the world economy
|Contribution to world growth|
|Euro Area + UK||20.6%||17.3%||6.4%||12.6%|