Greatest changes to the global economy

In the Industrial Revolution of the late 18th and early 19th centuries, one new force changed everything. Today our world is undergoing an even more dramatic transition due to the confluence of fundamental disruptive forces any of which would rank among the greatest changes the global economy has ever seen.

However by 2025, when China will be home to more large companies than either the United States or Europe, we expect nearly half of the worlds large companies defined as those with revenue of $1 billion or more to be headquartered in emerging markets.

The global urban population has been rising by an average of 65 million people annually during the past three decades. Technology offers the promise of economic progress for billions in emerging economies at a speed that would have been unimaginable without the mobile Internet.

Twenty years ago, less than 3 percent of the worlds population had a mobile phone; now two-thirds of the worlds population has one, and one-third of all humans are able to communicate on the Internet. Technology allows businesses such as Whats App to start and gain scale with stunning speed while using little capital.

We need to realise that much of what we think we know about how the world works is wrong; to get a handle on the disruptive forces transforming the global economy; to identify the long-standing trends that are breaking; to develop the courage and foresight to clear the intellectual decks and prepare to respond.






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 source:This article is an edited excerpt from No Ordinary Disruption: The Four Global Forces Breaking All the Trends, (Public Affairs, May 2015). To learn more about it and order copies, please visit Amazon, Barnes & Noble, or other leading bookstores.http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-four-global-forces-breaking-all-the-trendsd

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