Convergence, Interdependence, and Divergence

Kemal Derviş argues that growth rates in emerging market and developing economies are less dependent on advanced economies over the long run, but in the short run they are strongly linked. Derviş identifies three trends that characterize today’s world economy – convergence in long-term growth rates, cyclical interdependence around the long-term trend, and divergence between the world’s richest and poorest.