Furthermore, the rapid expansion of the market economy, together with the progress in IT and the ample inflow of capital to emerging economies, led to a rapid catch-up in industrialization among emerging economies and an increase in their domestic demand.
4  BIS central bankers’ speeches  While these rapid global economic changes were occurring, Japan needed to devote substantial economic resources to dealing with the post-bubble adjustments. As a result, Japan was, in some respects, slow in adapting to these changes by, for example, achieving structural reforms and capturing demand from emerging economies, both of which bring about forward-looking investment.