"THIS IS A GOLDEN AGE OF GLOBAL GROWTH (yes, you read that right)":
Convergence occurs when a country’s rate of economic growth per head exceeds that of the typical advanced country, say the US. Between 1960 and 2000, the US grew at about 2.5 per cent. About 20 poor countries (excluding oil exporters and small countries) grew faster than the US by 1.5 per cent on average, among them remarkable growth stories such as Japan, Korea, Singapore, China and India.
About a decade before the global crisis struck, a shift occurred. Eighty countries – four times as many as in the previous period, located in sub-Saharan Africa and Latin America as well as Asia – started catching up with US living standards. Their growth exceeded that of the US on average by nearly 3.25 per cent, implying that this broader group was catching up twice as fast as did countries following the second world war. Put simply, prosperity was spreading across the globe, and at an accelerating pace.
The implications are enormous. For example, if this pace continues, sub-Saharan Africa – and, indeed, 80 per cent of all countries – could in 50 years be in a situation comparable to that of Chile today.
Did the subprime and eurozone crises set back this process? Between 2008 and 2012, developing countries’ growth did decelerate in absolute terms, from about 4.5 per cent to about 3 per cent. But the pace at which they were catching up with rich ones did not slow significantly.This chart is telling (click to enlarge):