There is progress in emerging lands
The Wall Street Journal - 02/07/2014
Ruchir Sharma’s “The Emerging-Market Comedown” (op-ed, Jan. 22) is a useful antidote to all the hype about emerging economies, but he is wrong to assert that incomes in poor countries aren’t gradually converging with those of rich countries. Economist Angus Maddison’s work has shown that since emerging economies gained independence, and especially after they embraced globalization in the 1980s and 1990s, their incomes have been rising faster than that of rich countries. Mr. Sharma’s point that all emerging markets haven’t grown at a high clip all the time is true—but hardly damning. He is also right that poor countries highly dependent on natural-resource exports grow less consistently, but the majority of poor countries, including China and India, aren’t in that situation.