Development pp 51-74 | Cite as

The Economy Strikes Back; Convergence, Divergence and Imbalances

  • Gianni VaggiEmail author


Major changes have characterized the international economy since the ’70s. Asian growth, in China in particular, is changing the economic relations and development cooperation, with many emerging countries now becoming ‘new donors’. International finance has boomed to a level almost 10 times larger than world GDP; however, financial crises are a recurrent phenomenon. Income distribution has been worsening in many countries: income and wealth are highly concentrated in the top 10% and top 1% of the population. Since the 2007 crisis, economic growth has slowed. Is this a secular stagnation? Large trade ‘imbalances’ and protectionist policies have emerged. Developing countries are experiencing huge migration outflows. All these economic forces can affect the long-run progress towards sustainable development.


Asian growth International finance Inequalities Secular stagnation Economic imbalances 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Department of Economics and BusinessUniversity of PaviaPaviaItaly

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