Economics of convergence

Recently I've taken an interest in reading about developmental studies.

We see from Solow Model that there may be a theoretical convergence of the world's economies in the future... it's a matter of time, or so it was?

Quoting Friedman, in this world of globalization, it's like running a "hundred-metre" race, no matter how many times you win, you'll always have to run again the next day... and if you lose by a-tenth of a second, it can be as if you lost by an hour."

From my perspective, it is an unfair race to begin with. The developing countries are being hampered by a relatively lower level of competitive status quo (e.g. in terms of secondary education levels, Information Communications infrastructure...) Also, the premature openning up of these economies to foreign competition may inject the much needed competitiveness, but the locals may be displaced in terms of economic influence. It hence places a huge responsibity on the MNC to ensure alignment of their interests with the respective developing countries' development plans.

Despite the considerable (and indeed applaudable) performance of East Asia and South Asia in the past decade in catching up in terms of development, we see African subcontinent (where a good portion of the world's poor live in) being rather left out in the developments. We need to engage these countries in real dialogue... to get a pledge by these countries to contribute to improving their countries, themselves.

Aid can do only thus much... the bulk of the work is often reliant on the local governments and adminstration.

In order for convergence in an absolute sense... we'll probably take a really "long run"... and hopefully in a long-run where we are still alive to see.