The developing world is growing faster than us, but don't panic

I'd still rather be growing slowly at a high level of development than the other way round.

Chris Giles and Kate Allen, writing in the FT, highlight the changing pattern of worldwide economic growth:

In 2013, for the first time since mechanisation led Britain down the path of industrialisation in the 19th century, emerging economies will produce the majority of the world’s goods and services. The inhabitants of rich, advanced economies have long represented only a small but powerful proportion of the world’s population. Now, they are less economically important than the mass of people living in the world’s poor and middle-income countries.

They also present a fun little chart of the changing economic "centre of gravity" in the world, showing its shift to the northwest throughout the 19th and first half of the 20th centuries, and then sharp reversal after 1960:

The shift is certainly important, in an arbitrary-but-psychologically-important-figure sort of way, but its worth taking proclamations of doom with a pinch of salt. In a follow-up blog post, Allen shows why, presenting the ten fastest-growing economies:

  GDP change, % (2013)
South Sudan 32.1
Libya 20.2
Sierra Leone 17.1
Mongolia 14.0
Paraguay 11.0
Timor-Leste 10.0
Iraq 9.0
Panama 9.0
The Gambia 8.9
Mozambique 8.4

 

The pattern is clear: if you want to top world growth tables, the best thing to do is experience a crippling conflict which destroys most of your productive capacity, and then recover from it. Not only will your annual growth skyrocket because you basically weren't making anything the year before, all the slack in your economy will be taken up with the recovery effort!

Of course, that's not actually something worth aiming for. But it's useful to make the point that when it comes to the developing world overtaking us, it's GDP, not growth, which we should be concerned about.

Now, given China's GDP will outstrip America's in a few years, that's not to say there's nothing to worry about…

A car is parked in the city of Chengdu, China. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Green party calls on Labour, Lib Dems, and Plaid Cymru to form a "progressive alliance" next election

Will Jeremy Corbyn, Tim Farron and Leanne Wood agree to meet for talks?

The Green party leadership have called upon Labour, the Lib Dems and Plaid Cymru to work together to challenge the Tories at the next election. In an open letter, the Green leaders stress the exceptional circumstances occassioned by the vote to leave the EU:

“In a spirit of openness and transparency, we are writing to you as leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

“We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

“With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

Caroline Lucas shot down a rumour that she would be joining Corbyn’s shadow cabinet. But her party has decided to call for a progressive alliance and an early general election. 

Key to such cross-party talks would be the demand for electoral reform, as the leader Natalie Bennett added in a statement:

“Central to such a progressive alliance would be a commitment to proportional elections for the House of Commons and an elected second chamber.”

The call for a more plural politics follows a post-referendum surge in Green party membership, with up to 50 people joining per hour.

Here’s the letter in full:

Open letter to: Jeremy Corbyn, Tim Farron, Leanne Wood on behalf of Green Party of England and Wales,

In a spirit of openness and transparency, we are writing to you as Leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

Britain is in crisis and people are scared about the future. Never have we had a greater need for calm leadership to be shown by politicians.  

We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

This is an opportunity to recognise that a more plural politics is in both the Left’s electoral and political interests. This crisis exposes the absurdity of our first past the post electoral system.  Just 24 per cent of those eligible to vote elected the government that called the referendum. The only fair way to proceed is to have a proportional voting system where people can back the politicians who they believe in, rather than taking a gamble and not knowing who they will end up with.  

The idea of a progressive alliance has been floated for several years, and proposals have once again been put forward in the context of the current crisis.  We believe that the time has come to urgently consider such ideas together in the context of a Westminster Government. We recognise the very different political situation in Scotland, given the strongly pro-EU majority there. We hope that co-operation between progressive parties their can ensure that this mandate is respected, and we will support them to keep all options open.

We look forward to your response,

Natalie Bennett, Leader of The Green Party of England and Wales

Steven Agnew MLA, Leader of the Green Party of Northern Ireland

Alice Hooker-Stroud, Leader of Wales Green Party

Caroline Lucas, MP for Brighton Pavilion

India Bourke is the New Statesman's editorial assistant.