Economic Growth

Continuing my study of the GSG report Bending the curve, today I look at the second critical trend that they used in their model, economic growth. The refence scenario was characterised by quadrupling of the world economic output with respect to 1995 and income (GDP per capita adjusted for purchasing power parity) growth of 150% in 2050. Also the world would be characterised by increasing inequality. The average annual growth rate of the world GDP was projected to be 2.7%, growing from $33.4 trillion in 1995 to $145 in 2050. The absolute difference in income between OECD and the developing countries was expected to increase from $17,000 per capita in 1995 to $47,000 per capita in 2050.
The policy reform scenario envisaged similar economic growth but with more equity both at the national and international level.
In 2003 the world GDP (PPP) was $51,8 trillion and the annual growth rate of the world GDP was 3%. The difference in per capita GDP (PPP) between the advanced countries and Africa was $26,110.
While economic growth is impressive inequality both at the national and international level are increasing and it is quite evident that we haven't shown a lot of political will to change the status quo. Hopefully things take a small but significant turn at the Gleneagles G8 summit.