The Global North must stop growing

“However, this requires preventing the Global North from rising, as we have to take seriously the aspiration of countries like India to reach the same level of prosperity as the Global North,” Piketty, a professor at the Paris School of Economics, said on Thursday.

“This aspiration is not going to go away, even if people in the North can imagine a world where it will go away,” he said in an interview on a new ‘Global Justice Report’ published by the World Inequality Lab, which he co-founded.

Piketty said that as part of a broader vision of global income convergence, India could reach a per capita income of 60,000 euros in purchasing power parity terms by the end of the century, equivalent to about 5,000 euros per month currently.

“Our plan is to bring India and the Global South to the level of rich countries today, or a little over 5,000 euros, compared to 4,500 euros today in North America,” he said.

According to Piketty, such convergence is possible while keeping global warming within manageable limits, but only through major changes in production and consumption patterns.

He said, “By 2100 we can reach 5,000 euros per month in all countries including India. But, this requires different production systems than in the US today. So, it will be much less fossil fuel.”

Piketty said India’s immediate priority should remain economic recovery. “The priority for countries like India is to achieve greater prosperity, to achieve greater income,” he said. “At this stage, the real issue for India is to try to promote convergence and convergence.”