Even if growth in rich economies is spurred by the IT revolution, emerging economies could outpace them for several decades if they pursue sensible policies. If it is to happen, prudent monetary and fiscal policies, markets that are open to trade and foreign investment, and efficient banking systems are all essential. Not easy but feasible Asia's challenge now is to make better use of savings than in the past by allowing markets, not mandarins, to allocate capital, cleaning up banking systems, and cutting the red tape that stifles competition. To the extent that the crisis has unleashed reforms, this will continue to allow Asia to catch up. Other developing countries around the globe are also at last opening up their markets and deregulating their economies, so Latin America and Eastern Europe could well see their growth rates pick up over the next decade.
More open markets allow technology to be diffused more speedily.
Some economies will remain submerged, but those that embrace reforms most keenly will have the best chance of closing the income gap.