Main Article Content
While the income per capita in the developing world since the turn of the Millennium has grown faster than that of the developed world, the question whether there is an ongoing process of catching up between countries remains. The notion of income convergence has provided many insights into the sources for long-run growth but has largely neglected the role of social capabilities in economic development. By social capabilities we mean the qualification of the ‘theory of convergence’ which asserts that productivity growth rates between countries tend to vary inversely with regard to productivity levels. The social capabilities approach holds that a country’s potential for rapid growth is strong when “it is technologically backward but socially advanced” (see Abramovitz, 1986:388). This means that the potential to catch up under globalization is strongest for countries in which social capabilities are developed to allow successful use of technologies and where institutional arrangements are conducive to economic progress. Yet there is no clear agreement in the literature on the main components of social capabilities or how to measure them. Our framework argues that the role of capabilities in catching up needs to understand them in terms of structural transformation, economic and social inclusion, state´s autonomy and accountability. Without progress in these dimensions within-country inequality may increase and might in turn lead to stagnating growth and slim prospects for global income convergence.
Esta obra está bajo una Licencia Creative Commons Atribución-NoComercial-CompartirIgual 4.0 Internacional.
Abramovitz, M. (1986). ‘Catching up, forging ahead and falling behind’. Journal of Economic History, 46 (2), 385-406.
Abramovitz, M. (1995). ‘The elements of social capability. In Koo, B. H. & Perkins, D. H. (eds). Social capability and long term economic growth. New York: St Martin´s press.
Adelman, I. & Morris, C. T. (1967). Society, politics & economic development; a quantitative approach. Baltimore: Johns Hopkins Press.
Adler, G. & Magud, N. E. (2013). Four Decades of Terms-of-Trade Booms: Saving-Investment Patterns and a New Metric of Income Windfall. IMF Working Paper No. 13/103.
Akamatsu, K. (1962). Historical pattern of economic growth in developing countries. The Developing Economies, 1, 3-25.
Allen, F., Demirgüç-Kunt, A., Klapper, L. F. & Martinez Peria, M. S. (2012). The foundations of financial inclusion: Understanding ownership and use of formal accounts. Washington DC: The World Bank.
Alvaredo, F., Chancel, L., Piketty, T., Saez, E. & Zucman, G. 2017. Global Inequality Dynamics: New Findings from WID. National Bureau of Economic Research.
Andersson, M. & Gunnarsson, C. (2003). Development and Structural Change in Asia-Pacific: Globalising Miracles or End of a Model? London: Routledge.
Andersson, M. & Palacio, A. (2016a). Structural change and the fall of income inequality in Latin America-Agricultural development, inter-sectoral duality and the Kuznets curve. In Bertola, L. & Williamson J. (eds.). Has Latin American Inequality changed direction? Looking over the Long Run (pp. 365-386). Basel: Springer International Publishing AG.
Andersson, M. & Palacio, A. (2016b). Structural Change and Income Inequality–Agricultural Development and Inter-sectoral Dualism in the Developing World, 1960-2010. Revista OASIS, 23, 28-56.
Banerjee, A. V. & Duflo, E. (2011). Poor Economics – A Radical Rethinking of the Way to Fight Global Poverty. New York: Public Affairs.
Barro, R. & Sala-i-Martin, X. (1992). Convergence. Journal of Political Economy, 100 (2).
Baumol, W. J. (1986). Productivity growth, convergence and welfare: what the long-run data show. American Economic Review, 76, 1072-1085.
Besley, T. & Persson, T. (2013). Taxation and development. In Auerbach, A. J., Chetty, R., Feldstein, M. & Saez, E. (eds). Handbook of Public Economics (vol. 5, pp. 51-110). Amsterdam: Elsevier.
Bourguignon, F. (2002). The growth elasticity of poverty reduction: explaining heterogeneity across countries and time periods. In Eicher, T. S. & TurnovsMaky, S. J. (eds). Inequality and Growth: Theory and Policy Implications. Boston: MIT press.
Bräutigam, D., Fjeldstad, O. H., & Moore, M. (eds.). (2008). Taxation and state-building in developing countries: Capacity and consent. Cambridge University Press.
Broadberry, S. & Wallis, J. (2016). Growing, shrinking and long run economic performance: historical perspsectives on economic development. Unpublished.
Burckhardt, T. (2007). Foundations for measuring equality. Equalities Review Companion Report.
Christiaensen, L., Demery, L., & Kuhl, J. (2011). The (evolving) role of agriculture in poverty reduction. An empirical perspective. Journal of development economics, 96 (2), 239-254.
Diamond, P. A. & Mirrlees, J. A. (1971). Optimal taxation and public production I: Production efficiency. The American Economic Review, 61 (1), 8-27.
Duflo, E. (2001). Schooling and labor market consequences of school construction in Indonesia: Evidence from an unusual policy experiment. National Bureau of Economic Research.
Fagerberg, J., Feldman, M. P. & Srholec, M. (2014). Technological dynamics and social capability: US states and European nations. Journal of Economic Geography, 14 (2), 313-337.
FAO. (2014). The state of food and agriculture. Rome, Italy: United Nations.
Friedman, M. (1992). Do old fallacies ever die? American Journal of Economic Review, 2129-2132.
Gates, B. & Gates, M. (2014). Three Myths That Block Progress for the Poor. Gates Annual Letter.
Gelb, A., Meyer, C. & Ramachandran, V. (2013). Does poor mean cheap? A comparative look at Africa’s industrial labor costs. Washington D. C.: CDG WP 325.
Gerschenkron, A. (1962). Economic Backwardness in Historical Perspective: A Book of Essays. Cambridge: Harvard University Press.
Ghani, E. & O’Connell, S. D. (2014). Can service be a growth escalator in low-income countries? World Bank Policy Research Working Paper (6971).
Ghai, D. (2003). Decent work: Concept and indicators. Int’l Lab. Rev, 142, 113.
Gollin, D., Lagakos, D. & Waugh, M. E. (2013). The agricultural productivity gap (No. w19628). National Bureau of Economic Research.
Grabowski, R. (2014). Economic growth without transformation: the case of Uganda. Canadian Journal of Development Studies/Revue canadienne d’études du développement, 35 (2), 314-327.
International Monetary Fund (2015). World Economic Outlook Database. Washington D. C.: IMF.
Johnston, B. F. & Mellor, J. W. (1961). The role of agriculture in economic development. The American Economic Review, 51 (4), 566-593.
Ledgerwood, J., Earne, J. & Nelson, C. (eds.) (2013). The new microfinance handbook: A financial market system perspective. Washington D. C.: World Bank Publications.
Lewis, W. A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22 (2), 139-191.
Lin, J. (2011). From flying geese to leading dragons: New opportunities and strategies for structural transformation in developing countries. 15th annual UNU/ WIDER Lecture.
McMillan, M. S. & Harttgen, K. (2014). What is driving the African Growth Miracle? (No. w20077).
National Bureau of Economic Research Milanovic, B. (2016). Global inequality: A new approach for the age of globalization. Panoeconomicus, 63(4), 493-501.
Ocampo, J. A., Rada, C. & Taylor, L. (2009). Growth and policy in developing countries: a structuralist approach. Columbia: Columbia University Press.
Ohkawa, K. & Rosovsky, H. (1973). Japanese Economic Growth: Trend Acceleration in the Twentieth Century. Stanford: Stanford University Press.
Pritchett, L. (1997). ‘Divergence, big time’. Journal of Economic Perspectives, 11 (3), 3-17.
Putterman, L. (2013). Institutions, social capability and economic growth. Economic systems, 37, 345-353.
Ranis, G. & Fei, J. C. (1966). Development of the labor surplus economy; theory and policy. Irwin: Homewood.
Ravallion, M. & Chen, S. (2003). Measuring pro-poor growth. Economics letters, 78 (1), 93-99.
Rhode, P. W. & Toniolo, G., (2006). The Global Economy in the 1990s: A long-run perspective. Cambridge: Cambridge University Press.
Rodrik, D. (1994). Getting Interventions Right: How South Korea and Taiwan Grew Rich. NBER WP, 4964.
Rodrik, D. (1999). Where did all the growth go? External shocks, social conflict and growth collapses. Journal of Economic Growth, 4, 358-412.
Rodrik, D. (2011). The globalization paradox: democracy and the future of the world economy. Oxford: WW Norton & Company.
Rodrik, D. (2014). An African Growth Miracle? National Bureau of Economic Reserach, Working paper series No. 20188
Timmer, C. P. (1988). The agricultural transformation. In Chenery, H. & Srinivasan, T. N. (eds.). Handbook of development economics. North Holland: Amsterdam.
Wade, R. (1990). Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton: Princeton University Press.
World Bank (2006). Financial structure. Washington D. C.: World Bank Publications.
World Bank (2014). Growth Poles Report. Washington D. C.: World Bank Publications.
World Bank (2017). Universial financial inclusion. Washington D. C.: World Bank Publications.
TED (2016). Total Economic Database, the Conference Board.
Temple, J. & Johnson, P. A. (1998). Social capability and economic growth. The Quarterly Journal of Economics, CXIII, 965-990.
United Nations (2016). Report World Economic Situation and Prospects. Geneva: UN.