Global Development Horizons 2013: Capital For the Future
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Global Development Horizons 2013: Capital For the Future

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By 2030, half the global stock of capital will reside in developing countries, compared to less than one-third today, says report. For more visit: http://www.worldbank.org/CapitalForTheFuture

By 2030, half the global stock of capital will reside in developing countries, compared to less than one-third today, says report. For more visit: http://www.worldbank.org/CapitalForTheFuture

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  • Welcome to the second edition of theGlobal Development Horizons GDH, a world bank report dedicated to identifying emerging trends that will affect development in the long run. This edition looks at the important processes of saving and capital accumulation in the next two decades or so. And, by peering into the future, the report anticipates dramatic changes. what underpins growth in these various parts of the world. More precisely, it looks atThe first edition highlighted that the world economy has become multipolar: global economic expansion is and will continue to be the result of growth in many different parts of the world. And the first edition emphasized the fact that many developing countries will continue to experience sustained growth and thus are or will soon become some of the most important growth poles in the global economy.
  • Let’s organize the main findings of the “GDH Capital for the future“ around three key questions:The first one considers the demand for capital: Which countries will drive investment in a multipolar world? The second one addresses the concern that aging, by shrinking the share of high saving individuals in the population, will negatively affect saving… And the third onecontemplates how savers and investors will be matched in the future world economyThe report has qualified answers for these three questions…
  • Let’s organize the main findings of the “GDH Capital for the future“ around three key questions:The first one considers the demand for capital: Which countries will drive investment in a multipolar world? The second one addresses the concern that aging, by shrinking the share of high saving individuals in the population, will negatively affect saving… And the third onecontemplates how savers and investors will be matched in the future world economyThe report has qualified answers for these three questions…
  • Let’s organize the main findings of the “GDH Capital for the future“ around three key questions:The first one considers the demand for capital: Which countries will drive investment in a multipolar world? The second one addresses the concern that aging, by shrinking the share of high saving individuals in the population, will negatively affect saving… And the third onecontemplates how savers and investors will be matched in the future world economyThe report has qualified answers for these three questions…
  • Let’s organize the main findings of the “GDH Capital for the future“ around three key questions:The first one considers the demand for capital: Which countries will drive investment in a multipolar world? The second one addresses the concern that aging, by shrinking the share of high saving individuals in the population, will negatively affect saving… And the third onecontemplates how savers and investors will be matched in the future world economyThe report has qualified answers for these three questions…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • In terms of the first question, Developing economies will be major investors in the world economy, accounting, by 2030, for 60 cents of every dollar that will be invested. This is a dramatic change especially when considered against the historical performance: for almost 4 decades, developing countries had been accounting for just about 20 cents for every dollarIn less than a few years from now, total investment in the developing world will overtake high income countries; and world total investment will continue to rise thanks to an upward trend of investment activity in developing nations [, while investment in high income countries will likely level in the next two decades.]Note that the increasing role of developing countries materializes even with investment rates projected to come down for all regions. This apparent paradox can be resolved by considering the fact that the economic weight of developing countries is rapidly increasing and that these countries have much larger investment rates than developed regions. This is the so called composition paradox…
  • Having answered the first question, let’s move to the second: will an aging world have enough savings?Here you see a graph that illustrates the evolution of the ratio of working to nonworking population. Different regions reach the maximum of the demographic dividend with different speed, and in different time, but for most there will be a reduction of this dividend in the future. Thus for most regions, saving rates will be coming down with the noticeable exception of sub saharanafricaOnce again at the global level, the composition effect applies and high saving regions, even with decreasing saving rates, will have a larger weight in the future.………………..3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).
  • Having answered the first question, let’s move to the second: will an aging world have enough savings?Here you see a graph that illustrates the evolution of the ratio of working to nonworking population. Different regions reach the maximum of the demographic dividend with different speed, and in different time, but for most there will be a reduction of this dividend in the future. Thus for most regions, saving rates will be coming down with the noticeable exception of sub saharanafricaOnce again at the global level, the composition effect applies and high saving regions, even with decreasing saving rates, will have a larger weight in the future.………………..3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).
  • Having answered the first question, let’s move to the second: will an aging world have enough savings?Here you see a graph that illustrates the evolution of the ratio of working to nonworking population. Different regions reach the maximum of the demographic dividend with different speed, and in different time, but for most there will be a reduction of this dividend in the future. Thus for most regions, saving rates will be coming down with the noticeable exception of sub saharanafricaOnce again at the global level, the composition effect applies and high saving regions, even with decreasing saving rates, will have a larger weight in the future.………………..3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).
  • Having answered the first question, let’s move to the second: will an aging world have enough savings?Here you see a graph that illustrates the evolution of the ratio of working to nonworking population. Different regions reach the maximum of the demographic dividend with different speed, and in different time, but for most there will be a reduction of this dividend in the future. Thus for most regions, saving rates will be coming down with the noticeable exception of sub saharanafricaOnce again at the global level, the composition effect applies and high saving regions, even with decreasing saving rates, will have a larger weight in the future.………………..3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).3 dimensions of demographic asynchronicity: (a) speed (slope); (b) timing (location of peaks); (c) size of baby boomer/bulge generation (height of peaks).
  • Finally the third question… how will savers and investors be matched? Well, developing countries will become the main savers and investors. Here we show an interesting metric: the evolution of international gross capital flows. these flows are currently dominated by advanced economies, but this will change dramatically in the future, especially in a high convergence scenario where developing countries will account for 60 percent of the world flows.And our computer based projections are quite conservative when compared to a linear trend (that represents a situation where the past continues as usual).Let me conclude with one important warning though. The trends that the report shows, will not be realized automatically. Without any efforts, some countries will be left behind. And, more importantly, even within successful countries, some people, will be left behind. There is not much time, and there is a lot of work to do.
  • Finally the third question… how will savers and investors be matched? Well, developing countries will become the main savers and investors. Here we show an interesting metric: the evolution of international gross capital flows. these flows are currently dominated by advanced economies, but this will change dramatically in the future, especially in a high convergence scenario where developing countries will account for 60 percent of the world flows.And our computer based projections are quite conservative when compared to a linear trend (that represents a situation where the past continues as usual).Let me conclude with one important warning though. The trends that the report shows, will not be realized automatically. Without any efforts, some countries will be left behind. And, more importantly, even within successful countries, some people, will be left behind. There is not much time, and there is a lot of work to do.
  • Finally the third question… how will savers and investors be matched? Well, developing countries will become the main savers and investors. Here we show an interesting metric: the evolution of international gross capital flows. these flows are currently dominated by advanced economies, but this will change dramatically in the future, especially in a high convergence scenario where developing countries will account for 60 percent of the world flows.And our computer based projections are quite conservative when compared to a linear trend (that represents a situation where the past continues as usual).Let me conclude with one important warning though. The trends that the report shows, will not be realized automatically. Without any efforts, some countries will be left behind. And, more importantly, even within successful countries, some people, will be left behind. There is not much time, and there is a lot of work to do.
  • Finally the third question… how will savers and investors be matched? Well, developing countries will become the main savers and investors. Here we show an interesting metric: the evolution of international gross capital flows. these flows are currently dominated by advanced economies, but this will change dramatically in the future, especially in a high convergence scenario where developing countries will account for 60 percent of the world flows.And our computer based projections are quite conservative when compared to a linear trend (that represents a situation where the past continues as usual).Let me conclude with one important warning though. The trends that the report shows, will not be realized automatically. Without any efforts, some countries will be left behind. And, more importantly, even within successful countries, some people, will be left behind. There is not much time, and there is a lot of work to do.
  • Finally the third question… how will savers and investors be matched? Well, developing countries will become the main savers and investors. Here we show an interesting metric: the evolution of international gross capital flows. these flows are currently dominated by advanced economies, but this will change dramatically in the future, especially in a high convergence scenario where developing countries will account for 60 percent of the world flows.And our computer based projections are quite conservative when compared to a linear trend (that represents a situation where the past continues as usual).Let me conclude with one important warning though. The trends that the report shows, will not be realized automatically. Without any efforts, some countries will be left behind. And, more importantly, even within successful countries, some people, will be left behind. There is not much time, and there is a lot of work to do.
  • For example, the report finds that savings tend to be concentrated amongst few richer people. Poorer households have very few or no saving at all. Without saving they cannot accumulate physical or human capital and they and their sons and daughters are trapped in poverty.Increasing earning capacity via increasing access to education is a powerful way to start being able to save and thus escape poverty.Beyond this equity argument there is also an efficiency argument. As shown in this graph when we simulate an increase in education, Mexico aggregate saving rates may increase considerably. The report points to some other policy issues and it highlights that a 15- to 20-year time period will go by much quicker than we think. The pressure on developing countries to adapt is coming faster than it ever did for the industrialized countries during their own development.The global distribution of capital and wealth will shift toward the developing world Developing countries will account for two-thirds to three-quarters of every dollar of investment and saving, compared to less than 50 cents today. Global capital stocks and wealth will be concentrated in the developing world, which will account for more than 50 percent, compared to less than 30 percent today. As developing country saving outstrip investment projects, global investment will be increasingly funded by capital flows the South.Asynchronous demographic change will drive global saving patterns Regions with aging populations (EAP, HIC) will experience relatively larger contractions in their saving rates, while regions with growing labor forces and/or rapid productivity advances (SAR, AFR) will experience significantly slower declines (or increases). Global investment rates will fall slightly, largely in response to the smaller global pool of saving, but changes in relative rental rates on capital will mean that some regions (HIC, LAC) will see slower declines than others.A global financial landscape more diversity, more integration, and more interdependency Diversity: Developing countries will be a more important participants in global markets. Sophisticated: Decline in FDI and bank lending, shift toward capital markets. interconnected: Net and gross capital flows will increase. Integrated: Convergence in returns to capital between the developed and developing world (convergence in returns to capital due to relatively faster growth of risk-adjusted rental rates in HIC and compression in risk premia faced by DEV).
  • For example, the report finds that savings tend to be concentrated amongst few richer people. Poorer households have very few or no saving at all. Without saving they cannot accumulate physical or human capital and they and their sons and daughters are trapped in poverty.Increasing earning capacity via increasing access to education is a powerful way to start being able to save and thus escape poverty.Beyond this equity argument there is also an efficiency argument. As shown in this graph when we simulate an increase in education, Mexico aggregate saving rates may increase considerably. The report points to some other policy issues and it highlights that a 15- to 20-year time period will go by much quicker than we think. The pressure on developing countries to adapt is coming faster than it ever did for the industrialized countries during their own development.The global distribution of capital and wealth will shift toward the developing world Developing countries will account for two-thirds to three-quarters of every dollar of investment and saving, compared to less than 50 cents today. Global capital stocks and wealth will be concentrated in the developing world, which will account for more than 50 percent, compared to less than 30 percent today. As developing country saving outstrip investment projects, global investment will be increasingly funded by capital flows the South.Asynchronous demographic change will drive global saving patterns Regions with aging populations (EAP, HIC) will experience relatively larger contractions in their saving rates, while regions with growing labor forces and/or rapid productivity advances (SAR, AFR) will experience significantly slower declines (or increases). Global investment rates will fall slightly, largely in response to the smaller global pool of saving, but changes in relative rental rates on capital will mean that some regions (HIC, LAC) will see slower declines than others.A global financial landscape more diversity, more integration, and more interdependency Diversity: Developing countries will be a more important participants in global markets. Sophisticated: Decline in FDI and bank lending, shift toward capital markets. interconnected: Net and gross capital flows will increase. Integrated: Convergence in returns to capital between the developed and developing world (convergence in returns to capital due to relatively faster growth of risk-adjusted rental rates in HIC and compression in risk premia faced by DEV).
  • For example, the report finds that savings tend to be concentrated amongst few richer people. Poorer households have very few or no saving at all. Without saving they cannot accumulate physical or human capital and they and their sons and daughters are trapped in poverty.Increasing earning capacity via increasing access to education is a powerful way to start being able to save and thus escape poverty.Beyond this equity argument there is also an efficiency argument. As shown in this graph when we simulate an increase in education, Mexico aggregate saving rates may increase considerably. The report points to some other policy issues and it highlights that a 15- to 20-year time period will go by much quicker than we think. The pressure on developing countries to adapt is coming faster than it ever did for the industrialized countries during their own development.The global distribution of capital and wealth will shift toward the developing world Developing countries will account for two-thirds to three-quarters of every dollar of investment and saving, compared to less than 50 cents today. Global capital stocks and wealth will be concentrated in the developing world, which will account for more than 50 percent, compared to less than 30 percent today. As developing country saving outstrip investment projects, global investment will be increasingly funded by capital flows the South.Asynchronous demographic change will drive global saving patterns Regions with aging populations (EAP, HIC) will experience relatively larger contractions in their saving rates, while regions with growing labor forces and/or rapid productivity advances (SAR, AFR) will experience significantly slower declines (or increases). Global investment rates will fall slightly, largely in response to the smaller global pool of saving, but changes in relative rental rates on capital will mean that some regions (HIC, LAC) will see slower declines than others.A global financial landscape more diversity, more integration, and more interdependency Diversity: Developing countries will be a more important participants in global markets. Sophisticated: Decline in FDI and bank lending, shift toward capital markets. interconnected: Net and gross capital flows will increase. Integrated: Convergence in returns to capital between the developed and developing world (convergence in returns to capital due to relatively faster growth of risk-adjusted rental rates in HIC and compression in risk premia faced by DEV).
  • what underpins growth in these various parts of the world. More precisely, it looks atThe first edition highlighted that the world economy has become multipolar: global economic expansion is and will continue to be the result of growth in many different parts of the world. And the first edition emphasized the fact that many developing countries will continue to experience sustained growth and thus are or will soon become some of the most important growth poles in the global economy.

Transcript

  • 1. Capital for the Future
  • 2. Capital for the FutureWhich countries willdrive investment in amultipolar world?
  • 3. Capital for the FutureWill an aging worldrun out of saving tofund investment?Which countries willdrive investment in amultipolar world?
  • 4. Capital for the FutureWill an aging worldrun out of saving tofund investment?Which countries willdrive investment in amultipolar world?How will savers andinvestors be matchedin the future?
  • 5. Developing economies will be majorinvestors in the world economy,accounting for 60 cents of everyinvestment dollar by 2030
  • 6. Developing economies will be majorinvestors in the world economy,accounting for 60 cents of everyinvestment dollar by 2030
  • 7. Developing economies will be major investorsin the world economy, accounting for 60 centsof every investment dollar by 2030DevelopingHighincomeWorldinvestmentWorld GDP0204060801001200510152025302005 2010 2015 2020 2025 2030Y (USDtrillions)I (USDtrillions)Total investment in thedeveloping world will overtakehigh-income countries…
  • 8. Developing economies will be major investorsin the world economy, accounting for 60 centsof every investment dollar by 2030DevelopingHighincomeWorldinvestmentWorld GDP0204060801001200510152025302005 2010 2015 2020 2025 2030Y (USDtrillions)I (USDtrillions)Total investment in thedeveloping world will overtakehigh-income countries…
  • 9. Developing economies will be major investorsin the world economy, accounting for 60 centsof every investment dollar by 2030DevelopingHighincomeWorldinvestmentWorld GDP0204060801001200510152025302005 2010 2015 2020 2025 2030Y (USDtrillions)I (USDtrillions)Total investment in thedeveloping world will overtakehigh-income countries…
  • 10. Developing economies will be major investorsin the world economy, accounting for 60 centsof every investment dollar by 2030RussianFed.BrazilIndonesiaIndiaSub-SaharanAfricaHighincome10152025303540452005 2010 2015 2020 2025 2030I/Y (%) Despite declining investmentrates, their growing size means thatglobal investment remains stableDevelopingHighincomeWorldinvestmentWorld GDP0204060801001200510152025302005 2010 2015 2020 2025 2030Y (USDtrillions)I (USDtrillions)Total investment in thedeveloping world will overtakehigh-income countries…
  • 11. Developing economies will be major investorsin the world economy, accounting for 60 centsof every investment dollar by 2030RussianFed.BrazilIndonesiaIndiaSub-SaharanAfricaHighincome10152025303540452005 2010 2015 2020 2025 2030I/Y (%) Despite declining investmentrates, their growing size means thatglobal investment remains stableDevelopingHighincomeWorldinvestmentWorld GDP0204060801001200510152025302005 2010 2015 2020 2025 2030Y (USDtrillions)I (USDtrillions)Total investment in thedeveloping world will overtakehigh-income countries…
  • 12. While there will undoubtedly be demographicpressures, the world will not “run out” ofsaving in the futureHICEAPLACSSA11.21.41.61.822.22.42.61950 1981 2011 2042Working/non-workingpopulationAsynchronicity in evolvingdemographic pressures…
  • 13. While there will undoubtedly be demographicpressures, the world will not “run out” ofsaving in the futureHICEAPLACSSA11.21.41.61.822.22.42.61950 1981 2011 2042Working/non-workingpopulationAsynchronicity in evolvingdemographic pressures…
  • 14. While there will undoubtedly be demographicpressures, the world will not “run out” ofsaving in the futureHICEAPLACSSA11.21.41.61.822.22.42.61950 1981 2011 2042Working/non-workingpopulationAsynchronicity in evolvingdemographic pressures…HighincomeEast AsiaSub-SaharanAfricaLatinAmerica1015202530354045502005 2010 2015 2020 2025 2030S/Y (%) …implies heterogeneous decline insaving rates, with only SSA buckingthe trend
  • 15. While there will undoubtedly be demographicpressures, the world will not “run out” ofsaving in the futureHICEAPLACSSA11.21.41.61.822.22.42.61950 1981 2011 2042Working/non-workingpopulationAsynchronicity in evolvingdemographic pressures…HighincomeEast AsiaSub-SaharanAfricaLatinAmerica1015202530354045502005 2010 2015 2020 2025 2030S/Y (%) …implies heterogeneous decline insaving rates, with only SSA buckingthe trend
  • 16. Developing countries will increasingly be the mainsavers and investors. Indeed, they will become keyplayers in the international financial arenaHighincome05101520252000 2005 2010 2015 2020 2025 2030Grosscapitalinflows($ trillions)Developing countries will becomeimportant financial intermediaries…Developing countriesAdvanced countries47%53%
  • 17. Developing countries will increasingly be the mainsavers and investors. Indeed, they will become keyplayers in the international financial arenaHighincome05101520252000 2005 2010 2015 2020 2025 2030Grosscapitalinflows($ trillions)Developing countries will becomeimportant financial intermediaries…Developing countriesAdvanced countries47%53%
  • 18. Developing countries will increasingly be the mainsavers and investors. Indeed, they will become keyplayers in the international financial arenaHighincome05101520252000 2005 2010 2015 2020 2025 2030Grosscapitalinflows($ trillions)…and more so, in a scenario with rapidconvergence in institutions60%40%
  • 19. Developing countries will increasingly be the mainsavers and investors. Indeed, they will become keyplayers in the international financial arenaHighincome05101520252000 2005 2010 2015 2020 2025 2030Grosscapitalinflows($ trillions)…and more so, in a scenario with rapidconvergence in institutions60%40%
  • 20. Developing countries will increasingly be the mainsavers and investors. Indeed, they will become keyplayers in the international financial arenaHighincome05101520252000 2005 2010 2015 2020 2025 2030Grosscapitalinflows($ trillions)…and more so, in a scenario with rapidconvergence in institutions60%40%02468101214162000 2005 2010 2015 2020 2025 2030Grosscapitalflows todevelopingcountries(% GDP)And the scenarios are conservativeHistoricalGradual convergence scenarioRapid convergence scenarioLinear (Historical)9%6%11%
  • 21. These outcomes will only be realizedif policymakers take active steps interms of policy and institutionalreform.
  • 22. For example, even though saving will be more equally distributed acrosscountries, within them savings may still be concentrated amongst fewricher households, unless education opportunities are given to everyoneHousehold saving rate, MexicoDemographiceffectDemographic +education effect1011121314151617182010 2015 2020 2025 2030 2035 2040 2045 2050
  • 23. For example, even though saving will be more equally distributed acrosscountries, within them savings may still be concentrated amongst fewricher households, unless education opportunities are given to everyoneHousehold saving rate, MexicoDemographiceffectDemographic +education effect1011121314151617182010 2015 2020 2025 2030 2035 2040 2045 2050
  • 24. www.worldbank.org/CapitalForTheFuture