economy, a growth rate beginning with a five would be cause for ecstasy. For India, it is a huge disappointment. Its most recent quarterly growth figure translates into an annualised rate of only 5.8%, the fourth consecutive quarterly slowdown. That is slower than China and substantially slower than India believes itself capable of. Recent data suggest the swoon has since deepened .
There are two competing explanations for the slowing of convergence. One is that the good times were never going to last. Development is hard, which is why so few poor countries became rich during the 20th century. But around 2000 an unlikely combination of tailwinds temporarily suspended this age-old truism.
During the growth spurt of the past two decades, many countries saw their stock of capital increase. Quite a few experienced periods of urbanisation and economic reform that helped pull workers into factory and office employment, at higher productivity levels. And in some economies the groundwork for sustained growth was also laid during the boom.
Risk-taking is the oxygen of development. Risk weighted bank capital requirements, lower for “safe” sovereign than “risky” entrepreneurs… as if bureaucrats know better how to use credit they’re not personally responsible for, stifles such risk taking🤢
Countries like China, America need each other cause when never the two big elephants fight the grass suffers same to such, the ordinary people suffer so they should fore see and avoid such. Unless they don't mind on people but on other interests
EM has a some way to go catching up with the developed world - and U.K. is trying to reverse engineer it’s way on becoming EM.
For EmergingMarkets incomes to reach rich world's, need strong selfless leadership that can resist external temptations & love hardwork to relentlessly grow their PESTEL elements critically balancing them to avoid 'tipping'. Otherwise they'll be ransomed to rich world. No?
Fake data Fudged figures Fraud numbers Real GDP of India is around 3%
This has to be one of the most disgusting articles I have ever come across. The 'first world countries' have reached where they are after a long struggle. Give these 'developing' countries a chance to grow and learn from their mistakes.