The Brazil economy doesn’t have the raw force to drive it forward. The Federative Republic GDP per capita is today back where it was in 2010; this means the people of Brazil have lost the entire last decade. Worse yet, during the 80’s they had another “lost decade.” The current lost decade is the second time this has happened in the last 40 years. Over the last forty years, Brazil had over 20 years of zero GDP growth per capita.
Southeast Asia’s largest economy has been affected by Covid 19, causing Indonesia’s first recession in over 20 years. The last reported GDP declined 3.49% for the quarter ended September. This is the second GDP showdown in a row, with a 5.32% contraction in the previous three months. The definition of a recession is two consecutive quarters of negative growth.
The Harvard economist Dani Rodrik has written that a country’s economic development is virtually synonymous with its ability to produce manufactured goods for export. As countries adopt this export model it allows, for example, companies in Nigeria to compete internationally and gradually raise productivity through investment in capital and skills: “Industrialising has been a key escalator that has enabled rapid growth.”
The World Bank is forecasting an “anemic” economic outlook for Pakistan, with an expected growth rate of only 0.5% in the current fiscal year. “Given anemic growth projections in the near term, poverty is expected to worsen with government estimates of pandemic job losses at 14 million, as poverty is expected to increase for the first time in two decades.”
India’s GDP has just dropped by a whopping 24% in the last quarter, one of the biggest drops globally. The core reason for this significant decline was that India had one of the strictest COVID 19 economic lockdowns in the world.
This greatly and negatively affected the livelihoods of millions of Indians. So what can Indians do to repair their economy and increase lost incomes for their millions of citizens? A study has shown almost all countries need to grow and establish new Global Value Chains (GVC). Almost nothing has been proven better to raise incomes and reduce poverty, while requiring very little government involvement or costs.