The Finance Foundation
Reinventing capitalism for all
AUTHOR
Michel
Gabrysiak
President of the Finance Foundation

The 4 disruptive forces changing global econonmy
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In the industrial revolution of the late 18th  and early 19th  century one new force changed everything. Industry took over. 

Today, 4 disruptive forces are changing global economy.

McKinsey believes that this new change is 300 times bigger than the industrial revolution and its impact is 3000 more important. 

1)-The age of urbanisation. Cities are growing at a phenomenal speed. An example: Tanjin, in China, had a GDP of 130 billion dollars. More or less the size of Stockholm. In 10 years from now the GDP of Tianjin will be around 625 billion. In other words, the size of Sweden. This new age of urbanisation has thousands of consequences to be dealt with.

2)-The acceleration of technological change. It took radio 38 years to attract 50 million listeners. It took Facebook 6 years to attract 600 million users.

Five years after the launch of the iphone the number of applications is 1.2 million. The users downloaded more than 75 billion apps. More than 10 for every person on the planet. Processing power and connectivity are just part of the news. New businesses are born every day. Alibaba, Uber. 20 years ago less than 3% of world’s population had a mobile phone, 20 years later 2/3 of world’s population have one, and 1/3 communicate on the internet.

3)-How to respond to the challenges of an aging world. Despite the ever-growing world population, the aging makes for a demographic deficit. In Japan, in Russia, in China, soon in Latin America, caring for large number of elderly people will put severe pressure on government finance. 

4)- Connectivity of the world is growing at a totally unknown speed. Examples: the volume of trade between China and Africa rose from 9 billion in 2000 to 211 in 2012. Global capital flows expanded 25 times between 1980 and 2007. More than 1 billion people crossed state boarders in 2009. That is 5 times more than in 1980. 

No surprise that Big data/Governance of information are a growing industry
 

 

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