In a video interview with Mark Weisbrot, co-author of “The Scorecard on Development, 1960-2010: Closing the Gap?,” Mr. Jomo Kwame Sundaram, Assistant-Secretary-General for Economic Development of DESA, discussed the implications of the long-term economic failure of development.
The vast majority of developing countries have had a growth failure for more than 20 years since 1980, which has received very little attention from economists and the major media.
Mr. Weisbrot explained that the decline in growth happened due to the introduction of a number of neoliberal reforms in most developing countries. This includes tighter fiscal and monetary policies; de-regulation and opening to international markets; privatization; and abandonment of development strategies. It is important to note that this is what caused the decline in progress on social indicators, including life expectancy, child mortality, and education.
The recent economic growth in the developing world happened due to policy changes from less neoliberal to more pro-development and policy changes led by China. However, it is still too early to tell how much of this improvement is likely to be sustained.
Video length – 1:04:27