Hippolyte Fofack in Project Syndicate:
Overcoming the risk of “immiserizing” growth – an increase in aggregate national output that results in a net decline in national welfare – has been a perennial challenge as countries pursue economic development. It is also proving to be a major roadblock to achieving greater global income convergence.
Developing countries’ GDP growth has exceeded the global average over the past several years, and their economies are projected to expand by 3.6% on average in 2022, compared to world growth of 3.2%, according to the International Monetary Fund. But the income and welfare gaps between them and the advanced economies have widened, especially where GDP has consistently expanded at the expense of total wealth and future prosperity.
This counterintuitive development reflects a combination of factors.