ABSTRACT
This chapter analyses the complex manner in which the emerging developing economies of East, South and South-East Asia (in particular China and India) have been influencing the main imbalances in the world economy before the global economic crisis and after, how the global crisis has affected them, and how in particular the ‘dragon’ (China) and to a lesser extend the ‘elephant’ (India) stimulate the world economy’s recovery. It will be argued that ‘developing Asia’ is contributing to the rebalancing of a highly unbalanced world economy, but with its spectacular growth it was also part and parcel of growing global financial imbalances, while furthermore causing new ones to emerge.
