Dr. Haroutioune Samuelian on “the Rise of Emerging Economies”
On Friday, 9 November, 2012, the Faculty of Business Administration and Economics at Haigazian University, hosted Dr. Haroutioune Samuelian, Vice Governor of the Central Bank of Lebanon, in a lecture entitled, “the Rise of Emerging Economies”.
Dean Fadi Asrawi introduced the guest speaker, stressing on the importance of rising economies in emerging markets.
In his presentation, Samuelian talked about the rise of developing nations, mainly those of the newly enlarged BRICS, which made an important change in the global economy, as well as political landscapes. “Those nations’ influence on world development has been increasing at a very high pace,” said Samuelian.
He then explained how according to the Global Development Horizons (GDH) report (2011), the rise of emerging economies will inevitably have major implications for the global economic and geopolitical hierarchy, just as similar transformations have had in the past. “The Rise of the emerging powers is leading to a more balanced development in the Global Wealth. The G7 industrialized countries share of world’s production dropped in the last two decades, from more than 70 percent to 50%’ in favor of the emerging markets,” Samuelian pointed out.
Most Emerging countries have overcome the impact of the global financial crisis and managed to achieve robust economic growth. However, the BRICS Countries are recently suffering from economic problems. The nature of the problem is not the same in the five nations. In fact, the BRICS are all affected by weak western economies, and are suffering from corruption.
Giving the example of China, Samuelian said that this country, for the first time in the last fifteen years will have an economic growth of less than 8 % a year. This slowing growth reflects the fall in demand in Europe. Wages in Chinese factories are also rising fast, which is good news for workers but bad for China’s comparative advantage.
Lately and in a bid to encourage investments, the Chinese authorities may apply a sliding scale taxing on the period of holding stocks.
Samelian concluded that despite the recent economic slowdown in the BRICS countries (China picking up again), there is no doubt that they will continue playing a bigger role in the global economy, and their role in the redistribution of economic power and formation of a more balanced world economic order will not stop.