Ideas of India

Lant Pritchett on Where Did Development Economics Go Wrong?

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Mar 17, 2022
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INSIGHT

Economic Convergence and Divergence

  • While economic convergence has occurred since 1997, India and China still lag behind leading nations.
  • Disparities persist, and complacency during periods of high growth can lead to stagnation.
INSIGHT

Episodic Growth and Complacency

  • Growth in non-OECD countries is episodic, marked by rapid growth followed by various outcomes.
  • Complacency during periods of high growth can be detrimental, as it can lead to stagnation.
INSIGHT

Deals-Based Economy vs. Institutions

  • India's growth relies on "deals" rather than strong institutions and rule of law.
  • This deal-based economy creates uncertainty, making sustained growth challenging.
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