Trends Identified
Global dominance of the top three economies
By 2030 the top three economies of the world will be the US, China and India. Such will be the growth of the two latter countries, in particular, that by 2050 they will each be richer than the next five (Indonesia, Germany, Japan, Brazil, and the UK) put together. This will represent a scale of wealth relative to the rest of the top ten that is unique in recorded history.
Given China’s and India’s economic might, they will take on a much bigger role in addressing global issues such as climate change, international security and global economic governance. In the medium term, this will require the world’s existing powers—notably the US—to let India, and especially China, play a greater role on the world stage and adapt international institutions to allow them to exert greater influence.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
A new era of global demographic decline
Global growth to 2050 is not expected to decline dramatically from its average historical levels. However, regional growth rates are expected to begin to decline across every region after 2030. Much of the global growth in recent decades has been driven by population growth. Long-term population estimates, however, reveal that growth in the global population is expected to see a dramatic decline from an average of 1.3% in the 1980-2014 period to 0.5% across the 2015-50 period. The slowdown in the growth rate of the global working-age population will be even starker, with a drop to 0.3% in the 2015-50 period, compared with an average growth rate of 1.7% in the 1980-2014 period.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
Population growth will still bene t a few
The majority of countries in Africa and the Middle Eastern region will benefit from an increase in their working populations, which will be an advantage in sustaining higher growth rates in the forecast period.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
For most, population as a source of growth will need to be replaced
Most of Europe and East Asia, by contrast, is expected to see labour-force declines, representing a severe drag on growth. Japan will see the greatest decline of over one-quarter, from 66m to 47m; China and South Korea are also expected to experience a 17-18% contraction in their labour forces.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
Collectively rich, individually not so rich
Emerging markets are expected to grow faster than developed economies, and as a result developing countries such as China and India are likely to overtake current global leaders such as the US, Japan and Western Europe, while other emerging markets, such as Indonesia and Mexico, will rank among the top ten economies at market exchanges rates by 2050, overtaking economies such as Italy and Russia. By contrast, in terms of income per capita, a measure of individual spending power, today’s advanced economies are likely to continue to dominate.
2015
Long-term macroeconomic forecasts Key trends to 2050
The Economist
Climate change and planetary boundaries
As evidence mounts that the impacts of human-caused climate change are already upon us, the future of international development cannot be considered in isolation from the need to adapt. Furthermore the Earth’s natural systems are under enormous pressure, with huge consequences for the world’s most vulnerable people. As UNep’s 2012 Global Environment Outlook assessment concludes: “Scientific evidence shows that Earth systems are being pushed towards their bio-physical limits, with evidence that these limits are close and have in some cases been exceeded”.
2015
Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
Demographic shifts
The global population could reach 9.6 billion by 2050 and 10.9 billion by 2100. In 2000, for the first time, there were more people over the age of 60 in the world than children under five. By 2050, four-fifths of older people will live in developing countries, where 80% of them will have no regular income. Youth unemployment is also growing. In 2012, 15- to 24-year-olds made up 40% of the total unemployed population.
2015
Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
Urbanisation
Globally, more people live in urban than rural areas and this is expected to gather pace. But the urban transition is taking place at different rates in different parts of the world. By 2050 most northern regions are expected to be at least 84% urban. In contrast, even by 2050, Africa’s urban dwellers are projected to make up just 62% of its total, and Asia’s 65%. Even in Asia and Africa, though, rapid rural-to-urban shifts are taking place. Urbanisation is a key engine of economic growth, but with this comes the risks of social marginality, conflict and exploitation.
2015
Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
Natural resource scarcity
Demographic pressures create food and water insecurity, and supplies of non-renewable natural resources including fossil fuels are depleting. Scarcity could push prices up, creating further hardship for those most in need. Notwithstanding the current low oil price, from 2000 to 2013 metal prices rose by 176%, energy prices by an average of 260% and food prices by 120%. Depending on political responses, this may drive humanitarian crises, population movements and a rise in protectionist or nationalist policies.
2015
Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
Geopolitical shifts
In 2012, the Brics countries of Brazil, Russia, India, China and South Africa were reported as being responsible for more than 25% of the world’s GDP based on purchasing power parity and home to 40% of the global population. The axis of the world’s economic and geopolitical power has shifted – and will continue to shift – from west and north to east and south. Poverty patterns and distributions are changing alongside the wider geopolitical shifts, and donor policies are changing alongside them. Declining overseas development assistance to middle income countries and new donors entering the landscape are reshaping the nature of aid. Moreover, there is a risk that some growing political powers restrict the space for civil society action.
2015
Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian