WASHINGTON, May 16, 2013 – Seventeen years from now, half the global
stock of capital, totaling $158 trillion (in 2010 dollars), will
reside in the developing world, compared to less than one-third today,
with countries in East Asia and Latin America accounting for the
largest shares of this stock, says the latest edition of the World
Bank\’s Global Development Horizons (GDH) report, which explores
patterns of investment, saving and capital flows as they are likely to
evolve over the next two decades.
Developing countries\’ share in global investment is projected to
triple by 2030 to three-fifths, from one-fifth in 2000, says the
report, titled ‘Capital for the Future: Saving and Investment in an
Interdependent World\’. With world population set to rise from 7
billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced
countries, demographic changes will profoundly influence these
structural shifts.
\”GDH is one of the finest efforts at peering into the distant future.
It does this by marshaling an amazing amount of statistical
information,\” said Kaushik Basu, the World Bank\’s Senior Vice
President and Chief Economist. \”We know from the experience of
countries as diverse as South Korea, Indonesia, Brazil, Turkey and
South Africa the pivotal role investment plays in driving long-term
growth. In less than a generation, global investment will be dominated
by the developing countries. And among the developing countries, China
and India are expected to be the largest investors, with the two
countries together accounting for 38 percent of the global gross
investment in 2030. All this will change the landscape of the global
economy, and GDH analyzes how.\” Read More…