Dynamics and Factors of Economic and Social Progress of Developing Countries. Part 2

The second part of the article reveals that in recent decades, largely due to an increase in the level of financial depth in developing countries (DCs) and implementation of a more active policy in accumulation of physical and human capital (HK), the DCs on the whole, despite a significant increase in total debt (internal in Asian DCs, external in Sub-Saharan Africa (SSA)), almost caught up with the advanced economies (AEs) in terms of the share of total investments in GDP. The increase achieved on the whole in DCs’ government effectiveness, their quality of HK and progress in innovation enabled the DCs to begin surpassing the AEs in terms of labor productivity (LP) growth rates by 4 to 5 times, jump up in terms of the social progress index to ¾ of the AEs’ level, and the total share of the non-poor population in DCs tripled to 50%. But the faster growth rate of per capita GDP was by a third caused by its low initial level, in non-Asian DCs the growth rate of LP is many times lower, and in SSA the share of the critically poor population is almost 2/5. However, the fact that such a dynamic part of the DCs as the BRICS+, which surpass AEs’ G7 in investment efficiency by almost two times, and in GDP growth rates – three times, indicates that the countries of the Global South, are becoming an almost irresistible force, which the countries of the collective West can no longer ignore when solving the global problems of our time.