HED: A Development Nightmare DEK: What if poor nations actually caught up with rich ones? BYLINE: By Kenneth Rogoff BODY: Indulge in a dream scenario for a moment: Suppose the world awoke tomorrow and, miraculously, every country suddenly enjoyed the same per capita income as the United States, or roughly $40,000 per year. Global annual income would soar to $300 trillion, or some 10 times what it is now. And while we’re at it, suppose also that international education levels, infant mortality rates, and life expectancies all converged to the levels in rich countries. In short, what if foreign aid worked and economic development happened overnight instead of over centuries? A heretical thought, perhaps. But I wonder sometimes what voters in rich nations must be thinking when they reward their politicians for cutting already pathetic foreign-aid budgets. Is it possible that, deep down, the world’s wealthy fear what will happen if the developing countries really did catch up, and if the advantages their own children enjoy were shared by all? Would the dream become a nightmare? Consider whether today’s wealthy would materially suffer under such a scenario. As things now stand, 290 million U.S. citizens already cause almost one fourth of world carbon dioxide emissions. What if 1.3 billion Chinese and 1.1 billion Indians suddenly all had cars and began churning out automobile exhaust at prodigious U.S. rates? While the sun might not turn black and the ozone layer might not vaporize overnight, the environmental possibilities are frightening. And what of the price of oil, which is already notoriously sensitive to small imbalances in demand and supply? Absent huge new discoveries or brilliant new inventions, oil could easily reach $200 per barrel, as consumption and depletion rates accelerate. The mighty U.S. dollar would become a boutique currency and the euro...