The world is changing, and changing fast. Countries from the west that dominated the global economic and financial system still do so though their dominance has reduced manifold. And when it comes to energy consumption - the driving force behind growth of economies - we have reached a very important inflection point. As per statistics released by BP, primary energy consumption in the non-OECD countries exceeded OECD consumption for the first time in 2008. OECD, or Organisation for Economic Co-operation and Development, is an international organisation of 30 countries like the US, Canada, European nations, Australia and Japan. And given the fact that these countries have seen significant slowdown in their growth rates over the past few years, the energy consumption picture was bound to change, and it did in 2008.
In fact, the Asia-Pacific region accounted for 87% of the world's energy consumption growth during the year. While the Chinese consumption growth slowed for the fifth consecutive year, yet China accounted for nearly 73% of the incremental energy consumed in 2008 over 2007! India came in a distant second with 13% share of incremental consumption during the year. And what might interest the global energy policymakers the most, the US was the worst performer, as it recorded the highest decline in incremental consumption. In fact, consumption in the US fell by 2.8%, the most since 1982.
So what does this indicate? I believe it is clearly indicative of the rising economic clout of emerging nations, especially the BRIC block made up of Brazil, Russia, India, and China, and their demand for a greater role in the world policy dynamics. Remember, the BRIC comprises about 15% of the world economy and, perhaps more important, have about 40% of global currency reserves. And these have also weathered the financial crisis better than the world as a whole, thereby marking their dominance on the world stage. In short, the world has changed in a fundamental way. But whether this change is fortunate or not, only the next few years will tell.
In fact, the Asia-Pacific region accounted for 87% of the world's energy consumption growth during the year. While the Chinese consumption growth slowed for the fifth consecutive year, yet China accounted for nearly 73% of the incremental energy consumed in 2008 over 2007! India came in a distant second with 13% share of incremental consumption during the year. And what might interest the global energy policymakers the most, the US was the worst performer, as it recorded the highest decline in incremental consumption. In fact, consumption in the US fell by 2.8%, the most since 1982.
So what does this indicate? I believe it is clearly indicative of the rising economic clout of emerging nations, especially the BRIC block made up of Brazil, Russia, India, and China, and their demand for a greater role in the world policy dynamics. Remember, the BRIC comprises about 15% of the world economy and, perhaps more important, have about 40% of global currency reserves. And these have also weathered the financial crisis better than the world as a whole, thereby marking their dominance on the world stage. In short, the world has changed in a fundamental way. But whether this change is fortunate or not, only the next few years will tell.
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