Home > Uncategorized > Time is running out

Time is running out

This is a quick one not really developed yet. If we assume that the current stable growth regime cannot be permanent as economists assume, then the continuous growth rate of 2% on average over the last hundred years will not be sustained. Perhaps this will coincide with the end of cheap oil, perhaps with other limits, but we cannot assume growth per capita to continue like this. Given that assumption, the current international trade regime is creating permanent structural imbalances. The economic growth from developed economies goes to increasing per capita income and in theory increasing human capital. The economic growth in third world economies goes to a large degree to population growth. (Or at least has gone till the 1970s) This means that this limited era of continuous growth will leave the developed countries at a steady stay of per capita which is permanently much higher than third world countries. I do not think that the lack of investment in human capital is an accident, it is a product of the system built on core-periphery dynamics in which peripheries under colonialism were deindustrialized and integrated into an economy centered on the colonial metropole. All of this means that time is ruunning out, the sooner the third world economies switch to human capital and productivity gains enhancement the better. THere is only a limited time to raise GDP per capita before the end of the steady growth regime  or era and when it comes all states better be as high up on that productivity frontier as they can.

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: