Karabell: Developing Countries Key to Curing Economic Woes

Indian stockbrokers react as they monitor share prices during intraday trade at a brokerage firm in Mumbai on August 5, 2011. Indian shares plunged by nearly four percent to its lowest point in over a year, triggered by US economic worries and the European debt crisis which have spooked world markets. (Indranil Mukherjee/AFP/Getty Images)

Asia Society Associate Fellow Zachary Karabell took stock of Thursday's market crash in The Daily Beast:

And yet, while I claim no particular crystal ball insight on whether the next move is 5 percent down or 5 percent up, I can see that a global system is emerging increasingly anchored by what used to be called the “emerging markets” and hobbled by what used to be called the “developed world.” These are and have always been coupled, and too much weakness in one cannot be readily offset by too much weakness in the other. Now, it’s just reversed.

China, even a slightly-slowing China, has been a source of growth for a Brazil that sells it iron ore, a Chile and Peru that provides copper, an Australia that sells a whole suit of base metals, a Canada that does the same, a sub-Saharan Africa that provides agricultural commodities, and even an Indonesia and a Vietnam that are becoming sources of lower cost labor for a domestic market.

And then there is India, more insulated from the turbulent global financial markets—by design—not as sexy as its northern neighbor but still messily knitting together a democracy of affluence and poised to lead, along with others.

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About the Author

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Dan Washburn is Asia Society's Chief Content Officer. The Financial Times named his book, The Forbidden Game: Golf and the Chinese Dream, one of the best of 2014.