Convergence in a Global Economy

link here to article

Michael Spence delivered a talk on the problems of global growth and sustainability at the Carnegie Council. He had some very interesting views on how global GDP will increase by a factor of 3 and how it is forcing countries to respond to the problem of convergence. Most of the growth will occur in developing countries and it will raise 70% of the world's population above the poverty level. He had some very interesting comments on how China has grown its economy along with the recognition that growth must be sustainable in order to continue. There is a link to China's latest 5 year plan that is worth reading.

Growth in the developing world will create problems for many developed nations. For example most of the growth in the US economy has been in non-tradable services such as healthcare and education. The US will have to make the right kind of investments in order to participate in the high value added tradable sectors. Germany, may provide a model for the US to follow (if the US is able to learn from what other countries have done).