A new infographic from The Economist neatly shows the inversion taking place in the customary trade relationship between developed and developing countries (if such terms even still apply). It also shows the likely way developed countries will try get out of the current crisis they find themselves in: devalue and export. Of course, for countries in the eurozone it’s hard to devalue while remaining tied to an externally controlled currency union, but that’s another story. One thing to note is that the trend has been occurring since 1999, which means that economic contraction due to the current crisis cannot explain it. There’s something else at work. The very large and increasingly “wealthier” populations of developing countries are buying more stuff. And just as before the industrial revolution regional economic power was determined by population, it looks like this correlation is returning.
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