International Economic Management

Abstract

The article examines the performance of the Chinese, Indian and Russian economies in the context of the world economy. The major features of the world economy has been (i) its slowing down for all regions except Asia since the oil price shocks of 1973–74, (ii) the increasing integration of the different economies as barriers to trade have been reduced, and (iii) increasing importance of private capital flows. While the Russian economy, or that of the erstwhile Soviet Union, was not affected by the oil price shocks other economies apart from the Asian economies were. A major aspect of this effect is the decreasing productivity of capital. An important challenge is how the international economic system can be managed to return the world economy to higher rates of growth. In particular, how can growth rates in the developing world be raised? Trade liberalization must assist in this endeavor. Furthermore, increasing private capital flows have created the potential for destabilizing capital movements. It has been recognized that changes must be made in the international financial system. In this article we examine the interests of China, India and Russia in the international economic system.