After decades of policymakers assuming that manufacturing is the key to climbing the global value chain and boosting incomes, the evidence shows that services increasingly represent a more promising path to prosperity. In fact, the countries that pioneered the old model have become a case in point.
WASHINGTON, DC – For developing countries around the world – especially the poorest – the economic terrain has seldom been so slippery. Low-income countries have already suffered a lost decade, with virtually zero per capita income growth since 2010. Many middle-income countries are coming to terms with a demographic shift that puts them at risk of growing old before they grow rich. And many high-income countries risk stagnation because of sky-high debt and anemic productivity growth.
WASHINGTON, DC – For developing countries around the world – especially the poorest – the economic terrain has seldom been so slippery. Low-income countries have already suffered a lost decade, with virtually zero per capita income growth since 2010. Many middle-income countries are coming to terms with a demographic shift that puts them at risk of growing old before they grow rich. And many high-income countries risk stagnation because of sky-high debt and anemic productivity growth.