IMF official says split into competing systems would be 'disaster' for global economy

WASHINGTON - The world is on a path to a more multipolar world given the rise of emerging markets in the global economy, but it would be disastrous if the global economy fragmented into competing systems with different standards, a top IMF official said.

International Monetary Fund chief economist Pierre-Olivier Gourinchas told reporters that a managed transition to a more multipolar world would be a preferable outcome since it would maintain and protect gains realized globalization.

"One scenario is one where we have divided blocs that are not tarding much with each other, that are on different standards, and that would be a disaster for the global economy," he said, adding that this was more of a long-term risk.