After 2000, globalisation and surging commodity prices astronomically boosted economic growth among nations with emerging economies. Over the next decade their share of the global economy nearly doubled, growing to 35%. By 2007, 107 of the 110 developing economies featured in the Penn World Table were catching up to the United States in average income, helping millions to escape poverty. The celebratory mood was captured in a popular phrase: “the rise of the rest.”
Then came the crisis of 2008. Trade and capital flows plunged and commodity prices tanked, while slowing global population growth started to shrink work forces. Instead of rising again, developing economies saw their share of the global economy stagnate in the 2010s. Half the countries in the Penn World Table fell behind the United States in average income. Recently hyped stars like Brazil and Russia are growing slower than the US economy is. With the exception of China, “the rest” have fallen off the radar of the global media and financial markets.
Courtesy – https://timesofindia.indiatimes.com/