{"id":22432,"date":"2019-01-11T00:00:00","date_gmt":"2019-01-11T00:00:00","guid":{"rendered":"https:\/\/itcluster.lviv.ua\/itid\/the-future-of-global-economy\/"},"modified":"2023-02-15T08:54:22","modified_gmt":"2023-02-15T08:54:22","slug":"the-future-of-global-economy","status":"publish","type":"itid","link":"https:\/\/itcluster.lviv.ua\/en\/itid\/the-future-of-global-economy\/","title":{"rendered":"The Future of Global Economy"},"content":{"rendered":"
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The last 30 years have completely changed the human relationship with technology. Technology has become an integral part of our everyday life, and the tech progress doesn\u2019t seem to be slowing down. Dr. Jonathan Woetzel, one of the world\u2019s greatest economists, Senior Partner of McKinsey & Company and Director of McKinsey Global Institute is confident <\/span><\/i>\u2013<\/span> the future is digital. For ITID Lviv, Jonathan reveals the nearest future of global economy driven by four major forces <\/span><\/i>\u2013 urbanization, technology, aging, and globalization.<\/span><\/i><\/i><\/p>\n

\"36332839_2102401913313555_5135710747669561344_n\"Jonathan Woetzel researches global economic trends, urbanization, and sustainable economic development, advises national governments and municipalities in 40 geographic locations around the world. On top of that, Woetzel is the founder of McKinsey China and has been working with Chinese companies since 1985 to implement the strategy of global leadership of the region. <\/span>A term \u201cthe China effect\u201d, which describes an approach of being faster, cheaper and global, belongs to Woetzel. <\/span>A leading researcher of the Chinese economy, Woetzel wrote and co-authored multiple books, <\/span>three of which have become international bestsellers <\/span>\u2013<\/span> Capitalist China. Strategies for a Revolutionized Economy<\/span><\/i>, <\/span>Operation China: From Strategy to Execution<\/span><\/i>, <\/span>One Hour China, No Ordinary Disruption<\/span><\/i>. In June 2018, Jonathan became the keynote speaker of IT Jazz, a C-level networking conference annually organized by Lviv IT Cluster in the midst of the famous Leopolis Jazz Fest. <\/span><\/p>\n

<\/i><\/i>How are we doing?<\/b><\/p>\n

If we look around we see a lot of bad stuff happening nowadays <\/span>\u2013<\/span> terrorism is on the rise as never before, Brexit looks bad on all fronts, USA became the only country in the world to withdraw from the Paris Agreement on climate change mitigation, etc. On the other hand, we are actually living in the middle of a really amazing time. \u201cThe world is a smarter place that it has ever been, the world is a richer place, it\u2019s a cleaner place, it\u2019s a safer place. It\u2019s important to have the bigger picture if you\u2019re sitting in the middle of something that looks very chaotic. Today is the best time for the human race,\u201d says Jonathan beaming with optimism.
\n\"untitled-1-01\"<\/span>Having looked at the graph above, it seems obvious that the world has changed for the better in the last few hundred years. This brings up the next question <\/span>\u2013<\/span> what is the biggest trend on the planet that has been driving this change?<\/span><\/p>\n

For hundreds of years, maybe even thousands of years the global economy was growing at 1% GDP growth, but somehow over the last 40 or 50 years, we doubled that. Mankind got better and smarter, hence more capable of fixing problems. Eastern economy has moved from the East to Europe and now it\u2019s going back to the East to India and China. The world\u2019s economic centre of gravity is shifting back to Asia. \u201c414 cities in emerging markets will fuel nearly half of the growth in global GDP through 2025 <\/span>\u2013<\/span> 293 of which are in Asia,\u201d states Jonathan <\/span>\u2013<\/span> he\u2019s confident that emerging regions are the place you should look at if you\u2019re in search for investors, technology, and marketplaces. In 2010, there were about 8000 companies in the world that had a billion-dollar revenue. By 2025, almost half of the world\u2019s billion-dollar-plus companies will be headquartered in emerging markets \u2013 40% of new companies in Asia.<\/span><\/p>\n

Comparing the landscape in Shanghai in the 1980s and now, Woetzel says: \u201cGrowth is a very physical thing. You go from flat to tall, you go from slow to fast, you go from local to global\u201d.<\/span><\/p>\n

Growth is also about spendings: by 2025, 7.5 million wealthy Chinese households will account for 44% of the global luxury-goods market. This means that for luxury brands like Rolls-Royce Asia is the only market they care about.<\/p>\n

The new digital reality<\/b><\/p>\n

Technology is completely revolutionizing the future of work and the future of economies. The average lifetime of companies has declined by 80% over the last 50 years. \u201c50 years ago if you were a big company, you were an old company. Today, if you are a big company, you\u2019re a young company,\u201d continues Woetzel. What he means is essentially 3 things: hardware, software, and data.<\/p>\n

According to the McKinsey Global Institute, the three factors that are accelerating the pace of technological change are the following: <\/span><\/p>\n