The Enduring Enigma of Economic Growth: New Commentary by Professor Andrés Velasco

Professor Andrés Velasco, Dean of the School of Public Policy, has published a new Project Syndicate commentary, The Enduring Enigma of Economic Growth, examining one of the most important questions in economics: why some countries achieve sustained prosperity while others struggle to grow.

In the article, Professor Velasco argues that while many developing countries have made significant progress in areas linked to growth, including education, health, investment and institutions, income convergence with advanced economies has remained frustratingly slow.

Drawing on examples from countries including China, India, Brazil and Mexico, he explores why economic reforms can create the conditions for growth but do not always deliver the expected results. While some countries have experienced rapid increases in living standards, many others have struggled to sustain growth despite pursuing similar policies.

The commentary highlights the role of productivity, innovation and the diffusion of technology, arguing that the challenge for many developing economies is not simply accessing new ideas but building the capabilities needed to apply them effectively.

Ultimately, Professor Velasco argues that governments have an important role to play in supporting technological upgrading, skills development and innovation, while ensuring markets remain competitive. Understanding how to bring more people into productive economic activity, he suggests, remains one of the defining challenges of economic development.

Read the full article on Project Syndicate.