Sources from Davos stated that former RBI Governor Raghuram Rajan had stated that the Western world must realize they cannot go a long way without the help of the emerging economies and warned that no one would be able to resolve any problem of a 'fractured world' if things are not set right soon.
Meanwhile without naming any country, he said the West must realize that their population is ageing and the demand for their products would mostly come from the emerging world. Further when speaking in Davos at a session of the World Economic Forum (WEF) Annual Meeting, Rajan said there is a risk that by the time the West goes to the emerging world for their support, they may have to answer quite a few questions about why they did not share the benefits earlier.
Moreover Rajan also took on the economists who frown upon the idea of economic narratives and said it has become difficult to make people believe in them for setting things right. He added "When the economist hears the word narratives and stories he thinks it's below him and to believe they are beyond the tradition of narratives”.
