The Future of Asia 2012

Emerging Markets Key To Growth: World Bank's Sri Mulyani

Thursday, May 24, 2012

TOKYO (Nikkei)--World Bank Managing Director Sri Mulyani Indrawati said on Thursday that emerging markets will continue to play a major role in the world economy during times of crisis.

"The prospects for developing economies continue to be brighter than for high-income countries," Sri Mulyani said at the annual Future of Asia conference. "Addressing the constraints to growth in these economies will be the key to global growth in the coming years."

She identified three key areas for emerging markets to focus on in order to avoid sliding into the so-called "middle income trap" that rapidly growing countries often end up facing. She pointed to regional imbalances, structural constraints and the need to foster innovation.

Sri Mulyani also said that it is becoming increasingly important for countries to coordinate their policies, because the global economy has become more interconnected. "What happens in Greece will matter in Japan -- decoupling is a fantasy," she added.

Titles of speakers, names of companies, etc., were correct as of the time when the forum was held.