Over the past two decades, global economic power has been steadily shifting from the West to the East, fundamentally reshaping trade flows, technological leadership, and consumer dynamics. This transformation is not only redrawing the global economic map but also raising critical questions about cooperation, competition, and inclusion in a multipolar world.The key Indicator to these shifts are:

         1.  Economic Power: BRICS nations, led by China and India, surpassed the G7 in share of global GDP in 2018. By 2024 BRICS,accounts for 35.43% of global GDP, up from 21.37% in 2000.

2.  Foreign Exchange Reserves: Over two-thirds of global reserves are now held in Asia, with China alone holding $3 trillion.

3.Investment Flows: China is the largest outbound investor in developing regions, largely through its Belt and Road initiative.

4. Consumer Growth: Asia represents more than half of the global middle class and is projected to exceed 50% of global consumer spending, up from 20% in 1990.

5.  Technological Leadership: Asia, especially China, leads in AI, fintech, 5G, and patent filings, surpassing the US and EU combined.

The shift necessitates a reimagined framework for international cooperation, moving beyond traditional trade agreements to address inequality, sustainability, and resilience. Economist Arno van Niekerk outlines five strategic pillar.

  1. Inclusive Trade & Investment

    • Fair trade deals that empower small producers and ensure tech access for developing nations.

  2. Financial Cooperation

    • Expand access to climate finance, enable debt restructuring, and build social infrastructure through PPPs.

  3. Knowledge & Capacity Building

    • Invest in joint research, skills development, and labour mobility schemes.

  4. Governance Reform

    • Reform global institutions (IMF, World Bank, WTO) to reflect the voices of emerging economies.

Africa is uniquely positioned to shape this new global economic landscape. Key priorities include:

  • Building a digital and AI-driven economy through infrastructure and skills development.

  • Attracting investment in broadband, 5G, and data centres leveraging China’s Digital Silk Road where strategic.

  • Fostering inclusive and sustainable growth to move beyond raw material dependency.

  • Maximising geopolitical leverage by balancing partnerships with the US, China, and BRICS+, and enhancing South-South cooperation.

The eastward shift in global economic power is irreversible and accelerating. For emerging markets and especially Africa, success in this new multipolar world will depend on strategic investment in digital capacity, inclusive policies, and proactive engagement in global governance reforms. Business leaders and policymakers must adapt now to stay ahead of this transformation.

Source:The conversation