He asserted, without the courage and the coordination of actions, the world will face uncertainty and financial instability. “Ultimately, we would run the risk of what some commentators have called it a lost decade , “Lagarde said on Wednesday (11/09/2011), on his first visit to Beijing since becoming Managing Director of the IMF in July.

Former French finance minister has revealed, the Asian economy is relatively strong, but still must be prepared to face the storm. He said Asian governments must cut back a little tight monetary policy that has been applied to counter inflation. “Asia is not immune. Do not make a mistake,” he said.

Last month, the IMF cut its growth forecast Asia this year to an average of 6.3 percent from its previous forecast of 7 percent due to Europe’s debt crisis and economic slowdown in the United States.

After traveling at the beginning of the year, Asia’s growth slowed due to reduced demand from developed countries and Japan are affected by the tsunami in March 2011 this pasa.

Source: AP

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Evidence that these two countries as well as smaller ones like Korea and Singapore are poised to take over the role as global economic leaders can be seen in two ways. The first is the stable growth that has occurred after 2008. While the rest of the world and especially the West is still reeling and possibly descending once again into an even greater recession than 2008, the above mentioned countries are growing slowly, but steadily.

The second component is the number of investment firms channeling money to China, India and the other emerging Asian economies. ARC China, headed by Adam Roseman is a perfect example of an American investment firm now based for the most part in China. ARC China moved over before the great crash and has embedded itself as one of the leading hedge funds in China. Other investors are following suit and as the pendulum swings further it is clear others will as well.

In conclusion, the East is rising and by the look of it is set to lead the world global economy much faster than originally thought. If investors and hedge fund managers want to be on the winning end of global investments they need to go East!

Peter R Schwim is a noted hedge fund analyst and author who writes regularly for http://www.hedgecrunch.com.

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