In economics, the process signifies a tendency for poorer economies to grow faster than wealthier ones, thereby reducing the income gap between them. This implies that over time, levels of income per capita, productivity, or other economic indicators will become more similar across different regions or countries. An example illustrates this concept: If a developing nation experiences rapid technological adoption and capital accumulation, while a developed nation’s growth stagnates, the developing nation may eventually “catch up” in terms of living standards.
The significance of this process lies in its potential to reduce global inequality and promote more balanced economic development. If less developed regions consistently outpace more developed ones in growth, the disparities in wealth and opportunity diminish, leading to greater global economic stability and potentially reduced social unrest. Historically, discussions about this have influenced international development policy, with initiatives aimed at fostering growth in less developed economies, premised on the belief that such growth will eventually lead to a reduction in global disparities.
