The global economy was completely dominated by the western nations for centuries and that global economic system or order divided the nations of the world into either the consuming and importing economies or the manufacturing and exporting economies before the emerging markets and economies of China, India, Brazil, Russia, Mexico, Indonesia, South Korea, Hong Kong, Taiwan and South Africa entered into the international stage less than two decades ago to become the major players in the global trade. The developing economies of the world were the primary buyers and the markets for the finished products and services of the developed world's economies until the last 20 years.
These emerging economies are now experiencing double or triple rate in their annual and national economic growths than the developed or advanced economies of world of today. These emerging economies are now the major consumers of the global oil supply, raw materials and are now the key players in the 21st century economy. Today, China has the world's highest foreign currency reserves of about $3.1 trillion that are kept mainly in the United States dollar through the United States government and institutional bonds. Japan is second to China in terms of world's foreign currency reserves, but she is so far behind China at about $1 trillion.
As the global economy moves further and further into the 21st century, the economies of many of these emerging markets that are currently growing faster than those of the developed economies will eventually overtake the economies of today's developed nations of the western world if these current trends do not change. The biggest question that needs an urgent answer is this:can the western capitalist system that is based on the free enterprise and maximum profit but has no human face or compassion in it is truly sustainable without implementing the much needed radical economic reforms?
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