Michael Spence, author of The Next Convergence: The Future of Economic Growth in a Multispeed World; talking about on economic progress in the developing world.
He expects that the developed world will eventually encompass 80 per cent of the world’s population and the factors behind high-growth economies:
- The openness of globalisation according to Spence, but the openness is also due to technology driving knowledge transfer. This means that intellectual property rights is essentially harmful to this growth
- A second factor is high investment equivalent to 25 per cent of GDP: 6-7 per cent of GDP in infrastructure and education. China is currently investing at 45 per cent of GDP and savings rates are over 50 per cent
- Having a benign authoritarian regime helps to make things happen faster