Success, Disappointment, and Failure
As we’ve seen, rates of long-run economic growth differ quite a lot around the world. Now let’s look at three regions of the world that have had quite different experiences with economic growth over the last few decades.
Figure 9-8 shows trends since 1960 in real GDP per capita in 2000 dollars for three countries: Argentina, Nigeria, and South Korea. (As in Figure 9-1, the vertical axis is drawn in logarithmic scale.) We have chosen these countries because each is a particularly striking example of what has happened in its region. South Korea’s amazing rise is part of a broad “economic miracle” in East Asia. Argentina’s slow progress, interrupted by repeated setbacks, is more or less typical of the disappointing growth that has characterized Latin America. And Nigeria’s unhappy story until very recently—with little growth in real GDP until after 2000—was, unfortunately, an experience shared by many African countries.
Success and Disappointment Real GDP per capita from 1960 to 2013, measured in 2000 dollars, is shown for Argentina, South Korea, and Nigeria, using a logarithmic scale. South Korea and some other East Asian countries have been highly successful at achieving economic growth. Argentina, like much of Latin America, has had several setbacks, slowing its growth. Nigeria’s standard of living in 2013 was only barely higher than it had been in 1960, an experience shared by many African countries. Neither Argentina nor Nigeria exhibited much growth over the 50-year period, although both have had significantly higher growth in recent years. Source: The Conference Board Total Economy Database™, January 2014, http://www.conference-board.org/data/economydatabase