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Societal Growth Rates At least up to the early 1980's the orthodox theory of economic growth was Solow's neoclassical model which involved an exogenously determined long-run rate of growth and hence predicted convergence of growth rates between countries. However, widespread convergence has clearly not occurred, something that -among other things- caused dissatisfaction with the orthodox view and led to the emergence of the New Growth Theories. These made the rate of growth endogenous and as we will see allowed for non-convergence and even for divergence of income levels and growth rates between countries so the opposite from the essay title is true. A brief account of the neoclassical model would be useful. It assumes that only one good is produced, all savings are automatically invested, factor prices are flexible (i.e. there is no independent investment function), universal perfect competition and the aggregate production function conforms to the "Inada conditions" which among other...

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