India, China to Not Be Global Growth Poles: UNCTAD What are Growth Poles? (Download PDF)

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UNCTAD’s Trade and Development Report (TDR) 2017 predicts with India and China at their current growth will not serve as global growth polls. Barometer for assessing the global economic climate.

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Created with Highcharts 5.0. 14YearAnnual Growth Rate (%) India GDP Annual Growth Rate8.38.3666.86.87.67.68.48.47.47.49.29.27.97.97.57.5776.16.15.75.7Annual Growth (%) Jul 2014Jan 2015Jan 2015Jul 2015Jul 2015Jan 2016Jan 2016Jul 2016Jul 2016Jan 2017Jan 2017Jul 201702.557.510 Jul 2016Annual Growth (%): 7.9

What is TDR?

  • Flagship report of the United Nations Conference on Trade and Development (UNCTAD)

Global Economy and Non-Inclusive (Exclusive) Growth

  • Global growth expected to reach 2.6%, well below pre 2008 financial crisis average of 3.2%.

  • Globalized world suffers from unregulated finance and resulting deep-seated inequalities threatening inclusive economies.

  • The fix is to regulate the market power, rent-seeking behaviour and winner-take-most rules generating the exclusionary outcomes.

  • Indian should become more inclusive by combining economic recovery with regulatory reforms and redistribution policies.

India’s Growth

  • Likely to slow down to 6.7 % in 2017 from 7 % in 2016.

  • Needs reforms in banking sector- burdened with stressed and non-performing assets.

  • Needs reforms in informal sector still accounting for one-third of India’s GDP and more than four-fifths of employment

China’s Growth

  • Retained at 6.7%, same as in 2016 with gradual slowdown expected to continue

  • With debt-to-GDP ratio of 249%, needs measures to contain debt

Advanced and Developing Economies

Recovery in advance countries hampered by fiscal austerity- Capital inflows to developing countries remain negative

What Are Growth Poles?

  • Growth poles theory says that economic development takes place around a specific pole or region. The central location presents certain conditions, which favor growth pushing the surrounding regions towards growth.
  • In terms of the definition used by UNCTAD growth pole refers to the concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries.
Image of Growth Poles

Image of Growth Poles

Image of Growth Poles

What is UNCTAD?

  • United Nations General Assembly (UNGA) organization dealing with trade, investment, and development issues.

  • Aims to maximize the trade, investment and development opportunities of developing countries

  • Organizes World Investment Forum.

  • Publishes reports like “World Investment Report” and “Technology and Innovation Report”.

- Published/Last Modified on: October 14, 2017

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