ABSTRACT
In 2008, an unprecedented, though short-lived period of broad-based global economic growth came to an end. During 2002 and 2008, developing countries averaged about 5 per cent of per capita GDP growth per year, outpacing by far welfare increases in developed countries. Also many of the poorest countries witnessed strong per capita income growth (Figure 2.1), leading some observers to make the contradictory claims that globalization was effectively working to enhance living standards worldwide and that some kind of “decoupling” was taking place with strong endogenous growth in developing countries having become less sensitive to downturns in developed economies. 2
