Asia, Latin America: Is the Rise of New Growth Markets Shifting the Balance of Power in the Global Market?

A new free trade area is being created in Asia, and Latin America is also planning to conclude a trade agreement. Is the rise of the new growth markets changing the balance of power in the global market and shifting the main focal point of world trade? For Barbara Dluhosch, Helmut-Schmidt-University/University of the Bundeswehr Hamburg, there is no doubt that the global economy's growth pole has shifted in recent years. Higher competition among economic policies could have a beneficial effect due its disciplinary character. Although the economic policy priorities are different in each economic area, experience to-date suggests that demand for protection of the environment and better working conditions, for example, increases with income. In this respect the development process has its positive side. Michael Pflüger and Philipp Ehrl, University of Passau also see a transfer of economic power from the global economy's powerhouse to date, namely North America, Europe and Japan, to the dynamic economies of Asia and Latin America. This constitutes a replacement of the Washington consensus, which reflects the dominant influence of the United States on global economic institutions. When considering all of the issues raised by this phenomenon, it is important to remember that the new growth markets not only pose a threat, but may also create opportunities. According to Volker Treier, Deutscher Industrie- und Handelskammertag (DIHK), Berlin, the shifting of the balance of power creates opportunities for the world economy. A higher number of strong economic centres should reduce dependency and promote competition. The new economic importance of Asia and Latin America does not mean that the powers there are already strong enough to clearly influence global economic frameworks.