A Michael Spence, a Nobel laureate in economics, has stated that India has created the world's finest digital economy and financial architecture, pointing out that India is a big economy with the greatest potential growth rate at the moment.
During Monday's discussion with students and teachers at Bennett University in Greater Noida, Spence—who was awarded the Nobel prize in Economic Sciences in 2001—shared his ideas.
In terms of potential growth rate, India's economy is currently the most promising. Without a doubt, India's financial and digital infrastructure is second to none. It is accessible to all, fosters healthy competition, and provides inclusive services to a wide range of areas," the Nobel winner stated in a statement released by the university.
A "kind of regime change in the global economy" is happening, as Spence noted as well.
The 70-year-old global system is "breaking down" because to pandemics, geopolitical tensions, climate shocks, etc., according to Spence, who traced the growth of the global economy after WWII.
He made the point that "in a shock-prone world, it doesn't make sense to have single sourcing" and stressed that the global system, which is based on economic criteria like a global supply chain that prioritizes efficiency and comparative advantage, is going through a fast change.
He went on to say that the world economy is undergoing a fundamental shift as its center of gravity moves further and further east, leading to more complex global governance and a diversification of supply chains.
He remarked that the positive response to the question of whether or not we have countermeasures to improve human wellbeing is what brings hope in the face of adversity. Generative AI, biological life science revolutions, and huge energy transitions are just a few of the technological advances he listed as having the potential to improve human well-being.
The speaker used the competitive pricing of solar energy as an example and mentioned that the cost of DNA sequencing has dropped from $10 million to $250 million. Despite its availability to both large and small firms, he did note that there is a disadvantage to this technical advancement.
Spence, known for his studies of asymmetric information markets, stated, "We now have incredibly powerful scientific and technological tools that, if we use correctly, can be used to essentially deliver wellbeing and opportunity to a wide range of people."
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