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2001 Nobel Laureate Michael Spence Talks about Trends of World Economy

2012-12-17
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Mr. Dobbs argued that the sustained economic growth from the 20th century to the beginning of the 21st century has now been greatly changed because of the following three factors: firstly, urbanization has accelerated economic growth, especially in Asia. China, India and some other Asian countries are leading a great regional revival. Secondly, the aging trend of the international society hinders economic development, which should not be ignored. The problems brought by aging are predicted to become more serious among countries with large population, such as China, and whose structure is of the inverted pyramid form. At last, the emergence and dispersion of disruptive technologies lead to great changes in the economic development trends. With closer relationship between the world economy and capital markets, countries all over the word are increasingly interdependent upon each other. As a result, more attention needs to be paid to the possibility of severe economic fluctuations.