Hooray for Globalization
The Guardian reports that "Developing countries will enjoy their best year of economic growth in 2004, producing a 'spectacular' drop in poverty around the world."
The report was bullish on developing countries, saying they could double their growth rates to an average of 3.4%, up from less than 2% during the 90s. That would slash poverty rates in half by 2015 everywhere except sub-Saharan Africa.
Releasing its annual report on global economic prospects, the World Bank said developing countries will register growth of 6.1% this year and just above 5% in 2005 and 2006. This compares with overall global growth of about 4% for this year.
Nor were these increases confined to the fast-growing economies of China and India but were widespread around the developing world with the notable exception of Africa, said Ari Dadush, director of development prospects at the Washington-based organisation.
"A lot of countries have grown a lot faster in the past couple of years than they did in the 90s. And growth is the single most important driver of poverty reduction. It is absolutely fundamental," he said.
The report was bullish on developing countries, saying they could double their growth rates to an average of 3.4%, up from less than 2% during the 90s. That would slash poverty rates in half by 2015 everywhere except sub-Saharan Africa.
The faster growth was possible because of a sustained improvement in their macro economic stability, greater flexibility in moving resources to competitive opportunities, a better investment climate and continued progress in reducing trade barriers.
Sub-Saharan Africa remained the global laggard because of its vulnerability to oil prices and more fundamental issues of ineffective economic structures and inefficient government spending, it said, which would only partly be offset by further aid flows and debt forgiveness.
