A World at the Crossroads

In 2015, global headwinds – technology, demographic shifts, income inequality and resource depletion- will continue to push long-term global growth prospects downwards.

We will continue to grapple with the defining challenge of our time: how to create solid and sustained economic growth and continue to meaningfully put a dent in poverty across the world.

In essence, how do we restore robust growth in the Eurozone, the United States, and around the industrialized economies creaking under mounting debt, challenging demographics, and stagnating productivity; and how do we boost growth in the developing world – home to 90% of the world’s population and where, on average, 70% of the population is less than 25 years old – as a period of unprecedented economic expansion begins to slow in some places and regress in others?

Against this backdrop, the efficacy of democracy and market capitalism will continue to be challenged. Moreover, the temptation of policy makers to pivot to inferior models of economics and politics (including state-led capitalism, trade protectionism and reduced cross-border capital flows, de-prioritizing liberal democracy) will continue to mount.

From an investment stand point, opportunities will be in those countries and sectors that benefit from greater global volatility and declining globalization.

Dr. Dambisa Moyo
January, 2015