WASHINGTON, (Reuters) – The rise of emerging economies in the global economic system is paving the way for a multipolar world. However, it would prove disastrous if there were competing standards and the world economy became fragmented, according to a senior IMF official.

Pierre-Olivier Gourinchas, chief economist at the International Monetary Fund, stated that it was preferable to make a transition towards a multipolar world. This would preserve and protect globalization’s gains.

One scenario involves two or more blocs which do not lag behind each other but are still on the same standards. That would spell disaster for the world economy, he stated, adding that it was a greater risk in the long term.