Angela Merkel said there is a wake up call and we need to find out how to move forward.

German Chancellor Angela Merkel on Wednesday said countries like India and China have begun affecting the world economy much more today and that needs to be taken into account for having a relook at the global trade and financial systems.

In a veiled attack at policies being adopted by countries like the US, she said, "There is a new approach in the world that says shouldn't we look after our own, and ensure that our own are looked after."

"I have great doubts about this approach. We should always remember that others have their own interests," Ms Merkel said. "Let's call a spade a spade."

Speaking at the World Economic Forum Annual Meeting in Davos, she said there are a number of disturbances around the world and the IMF has painted a rather gloomy picture of the global economy.

If we look at the international order today, the global architecture is still driven a lot by what was created by people who were in power after the Second World War and they had the insight and their decisions should not be cast aside, Ms Merkel said.

She added that politicians have got a lot to face and banking industry has also lost a lot of credibility after the financial crisis.

"The global financial system has got damaged quite a bit and we need to do a lot to fix the things," she said, while noting that international bodies such as the World Trade Organization (WTO), IMF and the World Bank have very much contributed to making the world a better place.

"Countries like China and India are affecting the global economy much more today and the global organisations need to take that into account," she said, while highlighting the emergence of organisations like G20 and the Shanghai Cooperation Organization (SCO).

She said there is a wake up call for the world and we need to find out how to move forward.

Ms Merkel said compromise these days has a bad reputation, but a global architecture is only possible if we are able to compromise.