First published: Prospect Magazine, 17/10/13
Something unusual is happening in the world economy. Over the summer, economic forecasters have become more optimistic about the prospects for economic growth in the western world for the first time in four years. But in emerging and developing countries, there are new concerns about weakening economic growth and instability. This about-face in the fortunes of richer and emerging countries wasn’t in the script we have been reading in recent years. Even though rich countries are by no means out of the woods yet, some things are starting to go right. By contrast, China and many of its emerging market peers are slowing down for more than temporary reasons. Many could easily get stuck in a so-called “middle income” trap and fail to become yet more prosperous…. “more”:
