Understanding the New Global Economy

2

Global production

DOI: 10.4324/9781003057611-2

A sustainable increase in the material standard of living was achieved by mankind only with the Industrial Revolution but was also accompanied by a ‘Great Divergence’, the decoupling of the dynamic economic development in the West from the rest of the world. It was not until the second half of the 20th century that a few, mainly Asian countries, succeeded in catching up (see Figure 2.1). As a consequence, a multipolar world has replaced the 20th-century world order of European and American economic dominance. This chapter explores the drivers of economic growth and convergence of latecomer countries, with a particular focus on the role of technology. It finishes by discussing the future of ...