Shifting Wealth: A Window of Opportunity
Abstract:While it is a potential challenge to social cohesion, the shift in the centre of economic gravity from west to east ‐ shifting wealth ‐ also opens a window of opportunity for more inclusive development and stronger social cohesion. The financial and economic crisis has, if anything, further accelerated the ongoing structural transformation where emerging and developing economies recovered more rapidly to pre‐crisis levels of economic activity compared to advanced economies. The process of shifting wealth made available a greater range and amount of resources, e.g. larger fiscal revenues, higher export earnings, the continuing build‐up of foreign exchange reserves and rents from natural resources. Policies are crucial for the financial sustainability of social protection programmes in a context where gains are potentially volatile and, in some cases, dependent on non‐renewable resources (subject to depletion and exhaustion).
Document Type: Review Article
Publication date: 2011-11-01