Economists Admit Failure of Convergence Theory: Why Poor Countries Haven't Caught Up

Summary

The article discusses a significant economic essay by three economists (Arvind Subramanian, Justin Sandefur, and Dev Patel) titled "We were wrong about convergence," which represents a major admission from the economics profession. The essay addresses the failure of economic convergence theory - the idea that poorer countries would naturally catch up to richer ones through globalization and technology transfer. The authors acknowledge that their previous research supporting convergence was flawed, and that in reality, the gap between rich and poor nations has persisted or even widened, with developing countries like those in Africa failing to achieve the expected economic growth despite globalization. The article examines the implications of this admission for development economics and global economic policy.