Development Policy Centre Podcast

Since the mid-1990s, economic growth rates in large and populous middle-income countries have substantially outpaced those in OECD countries. This has reshaped the global economy and favoured convergence in global income per capita. The process of ‘shifting wealth’ was led by China and India, but other countries are also contributing to it, including Brazil and South Africa. In spite of the persistence of large gaps in income per capita between OECD and non-OECD economies and the wide inequality within developing countries, most developing countries have improved their macroeconomic management and have started to address long-term structural challenges. Developing countries are still accumulating capital and labour but they are also improving capabilities and increasingly using and producing innovations. However, mastering technology and knowledge in order to move up the value chain is still a goal to be achieved for most of them. To address the new development challenges, some countries are implementing indu