Economic Disparities: Growth and Catching Up

This lecture discusses the economic disparities between countries, focusing on the case of the Dominican Republic and Haiti. It analyzes the growth rates of GDP per capita in both countries over the past thirty years and explores the necessary yearly growth rate for Haiti to catch up with the Dominican Republic by 2050. The instructor presents reasons why many countries have not reached the income levels of Western European countries, emphasizing the importance of strong saving and investment practices. Various economic models are used to illustrate how high-income countries have achieved their status and what factors may have hindered others from reaching similar levels.