Dubai: Former Spanish prime minister Jose Maria Aznar said yesterday rapid Asian economic growth was changing the face of the global economy.
He said the world economy was enjoying "something of a golden age" and prospects for next few years remain bright.
"Various large economies may witness growth rates between 8 per cent and 10 per cent over a number of years," he said.
Aznar noted the sustained growth rates of nearly 8 per cent had led to a rapid reduction in the number of poor people in Asia.
"This continent is changing the face of the world economy at a dizzying pace," he said, pointing to remarkable growth rates in countries like China and India.
He said the Middle East was enjoying a favourable economic climate due to high oil prices, but regional governments, barring places like the UAE, had not made it their priority to ensure greater prosperity for their inhabitants.
"Sensible economic management has enabled the country to avoid what economists call the curse of natural resources," he said, praising the UAE for defying "the apparent paradox" that being rich in natural resources results in economic and social impoverishment.
"Dubai is an enlightening example of the fact that this effect does not necessarily occur," he added.
"A prudent approach and sense of vision regarding the future are creating the strategic foundations for a diversified economy, based on a number of extremely buoyant sectors such as finance and tourism, thus guaranteeing the country's future prosperity," Aznar said, speaking on "Free Trade and Globalisation" at the 40th IAA Congress.
The former Spanish leader, who carried out an extensive privatisation programme between 1996 and 2004, said countries should adopt free-wheeling globalisation by eradicating protectionism within their borders.
Aznar said traditionally the "Atlantic economy" had powered the world's economic growth driven by the US and European economies but the scenario had changed.
While the US continues to be a powerful economic force, Europe's economic performance is disappointing, he observed.
According to Aznar, the medium-term prospects for European growth "are also rather negative" and the long-term prospects are "even more unfavourable."
"In spite of the favour-able and historically exceptional world economic climate, Europe has become the region of lowest economic growth on the planet. It is Europe's own fault and only Europe's fault," he said, blaming the European economic decline on a "fossilised and excessively rigid" economy, too much interventionism and protectionism.
The only region cut off from global economic integration is Africa, according to Aznar.
"This is a general development that affects all continents, except for Africa, the continent that is still isolated from the process of globalisation."
"Those countries that have chosen the path of protectionism and isolated themselves from the phenomenon of globalisation have made no progress whatsoever in their fight against poverty."
Aznar, who has in the past faced the ire of anti-globalisation groups for his radical economic liberalisation policies, said such critics were "anti-development and anti-progress."
He said the World Trade Organisation was the "only institution capable of progressively dismantling economic and trade barriers" and those who attack the world body are "guilty of the most extreme irresponsibility."
"It seems extraordinary that the experience of two whole centuries has been unable to convince every country of the benefits of free trade, of its beneficial effects as a driving-force for economic growth, wealth creation, innovation, prosperity and social progress."
