A very interesting article by Mohamed A. El-Erian, Chief Economic Adviser at Allianz, someone I truly respect and I highly recommend reading the article; link below. I would also like to add the following comment on his article because I do feel that sometimes financial analysts/experts overanalyse issues related to economic growth or whether intentionally (or NOT) minimise the role of political reform in the process;
The data is indeed in and probably has been for some time; economies built on inequality are temporary & unsustainable on the long run. The crux of the problem is and always has been a political ecosystem mired in corruption and divisive politics. This to me is the bottom line; there is no potential for sustained economic growth without political reform. So instead of overanalysing the problem we need to simplify it as much as possible then apply the necessary remedies to fix (NOT patch) it. We also need financial analysts to correctly come to this same conclusion (political reform before economic growth) before they begin talking complex economic theories/analysis.