Africa Growth
4. Jan, 2007

Growing apart: Zambia and Thailand

In the 1960s, Zambia produced more output per person than Thailand. Today, however, Thailand’s income per person is six times that of Zambia. Yet Zambia has received far more foreign aid than Thailand. Why did the two countries grow so far apart in one generation? What does the modern theory of economic growth tell us about the divergence between the two countries? This article compares their growth
performance with broad strokes, and concludes that the experience of Thailand offers a number of useful lessons for Zambia and several other African countries.