This is an excellent well sourced article discussing a troubling trend – poor countries are not growing enough. In many cases, they are growing less than wealthy countries.
This is very relevant to neoliberals as a core belief we hold is that trade and capitalism will naturally help propel poorer countries upward and it is easier to grow your economy if you have a small economy. What if this idea is false and billions of people will never escape poverty?
We could be at the point where the price of investments/technological advantages mean they are not accessible to those in the south and with AI, western countries will return to ultra high growth and leave the rest of the world behind.
Priceless_Pennies on
This article is good but it should really be caveated with not including India which is a quite poor country with >1 billion people but with quite great economic growth for the last several years, it’s been at a consistent 8% (which is now the highest in the world) for several years now. That alone will contribute a lot to beta convergence.
Tricky-Astronaut on
Let’s look at BRICS, the presumed future growth engines of the world, and let’s consider the GDP with current USD to avoid cheating with the GDP deflator.
If it wasn’t for China and India, the picture of the developing world would look much bleaker. Fortunately, China and India are the two largest countries by population, so a lot of people can enjoy that growth.
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This is an excellent well sourced article discussing a troubling trend – poor countries are not growing enough. In many cases, they are growing less than wealthy countries.
This is very relevant to neoliberals as a core belief we hold is that trade and capitalism will naturally help propel poorer countries upward and it is easier to grow your economy if you have a small economy. What if this idea is false and billions of people will never escape poverty?
We could be at the point where the price of investments/technological advantages mean they are not accessible to those in the south and with AI, western countries will return to ultra high growth and leave the rest of the world behind.
This article is good but it should really be caveated with not including India which is a quite poor country with >1 billion people but with quite great economic growth for the last several years, it’s been at a consistent 8% (which is now the highest in the world) for several years now. That alone will contribute a lot to beta convergence.
Let’s look at BRICS, the presumed future growth engines of the world, and let’s consider the GDP with current USD to avoid cheating with the GDP deflator.
Brazil’s GDP [peaked in 2011](https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=BR). Russia’s GDP [peaked in 2013](https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=RU). South Africa’s GDP [peaked in 2011](https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=ZA).
Let’s compare with the “stagnant EU”. It [keeps growing](https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=EU).
If it wasn’t for China and India, the picture of the developing world would look much bleaker. Fortunately, China and India are the two largest countries by population, so a lot of people can enjoy that growth.
Good article!
[Youtube](https://www.youtube.com/results?search_query=solow+model) has short refreshers on the Solow Model