The Policy Center for the New South (PCNS) recently published a book titled Climbing a High Ladder – Development in the Global Economy, by Otaviano Canuto, Senior Fellow at the Policy Center for the New South, former vice president and former executive director of the World Bank and executive director of the International Monetary Fund (IMF).
The delivered which has four (4) parts and twenty-three (23) chapters, attempts to shed light on the notion of climbing the income ladder in the context of the global economy before and after the global financial crisis of 2007-2008, indicates the PCNS.
The author deals here with the opportunities and challenges facing developing countries to increase their level of per capita income in the most recent phase of globalization. After discussing the post-global financial crisis economic landscape in advanced economies, he looked at the opportunities that trade and financial globalization offers developing countries to move up the income ladder.
He then underlined the domestic conditions for a developing country to benefit from these opportunities. China, Brazil and sub-Saharan Africa are presented as case studies. The book ends with an assessment of the impact of the coronavirus crisis on the global economy.
The first chapter reviews the growth performance of emerging markets and developing economies before and after the global financial crisis. Not only have these countries failed to rise to the rank of new growth pole of the world economy, but their convergence of per capita incomes towards that of advanced economies has suffered a setback. This chapter also draws attention to policies and reforms that can address this.
The first part of the book deals with the post-crisis global macro-financial context. The second part is devoted to technologies and the globalization of trade as facilitating factors – with preconditions – of growth in developing countries. The third part presents the author’s point of view on the different stages of growth. Finally, the fourth part offers case studies by country.
The final chapter of the book deals with the coronavirus crisis and its impact on the global economy. In addition to the difficulties they face in managing the coronavirus epidemic, emerging markets and developing countries have suffered additional external shocks. The coronavirus has plunged them into a deep crisis. The possible consequences of the coronavirus crisis are also highlighted in this chapter.
According to the Policy Center, the takeaway from this dual analytical and historical approach is unique: if historical and geographic conditions matter, but ultimately it is the adoption of appropriate policies and reforms. and specific to each country that can make a difference.