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The International Monetary Fund has urged advanced countries to form partnerships with emerging and developing countries so as to bolster sustainable and safer capital flows.
Managing Director of the Fund, Christine Lagarde, said developing economies which now account for almost 60% of the global GDP, have contributed to more than 80% of global growth since the 2008 financial crisis.
Because advanced economies rely on emerging markets as investment destinations and for exported products, a decline in either easily affects the other.
According to the fund, the new partnerships will go a long way in cushioning the economies from shocks such as a plunge in oil prices.
