A snapshot in 2030 will reveal a world in which more than two-thirds of all global investment and
and half of the global accumulated capital stock will be in developing economies. This is in sharp contrast with recent history. Currently, almost 70 percent of
the world’s capital stock resides in the developed world, and in 2000 developing countries’ share
in global investments was only about 20 percent.
Projections made by the World Bank indicate
that, by 2030, global aggregate investment activity will far and away reside in China—with 30
percent—while India and Brazil (7 percent and 3
percent, respectively) will account for shares comparable to the United states and Japan (11 percent and 5 percent, respectively). Developing asia
will collectively hold capital stocks exceeding 55
percent of the entire developed world’s.
This shift in investment activity toward the
Global south coincides with rapid catch-up
growth that began during the 1990s as developing countries integrated into global markets,
underwent structural transformations, and
improved their institutions. assuming a continuation of needed reforms, this catch-up process is
expected to carry on over the course of the next
two decades. in fact, the shift in allocation of
the global capital stock corresponds closely to
a similar rise in developing countries’ share of
global gross domestic product (GDp). Currently,
roughly 70 percent of global GDp is produced
in high-income countries, and that share will
decline to around 50 percent by 2030. indeed,
the capital-to-GDp ratios of developing countries as a group and high-income countries as a
group differ very little, even as the ratio can vary
substantially across individual countries: in both
groups, the size of the capital stock is about 2.5
times the size of annual GDp, and this ratio is
expected to increase gradually over time. as labor
productivity in developing countries catches up
with the higher levels that exist in high-income
countries, the global distribution of capital per
capita will become more equal.
with much higher productivity".
Source: World Bank
and half of the global accumulated capital stock will be in developing economies. This is in sharp contrast with recent history. Currently, almost 70 percent of
the world’s capital stock resides in the developed world, and in 2000 developing countries’ share
in global investments was only about 20 percent.
Projections made by the World Bank indicate
that, by 2030, global aggregate investment activity will far and away reside in China—with 30
percent—while India and Brazil (7 percent and 3
percent, respectively) will account for shares comparable to the United states and Japan (11 percent and 5 percent, respectively). Developing asia
will collectively hold capital stocks exceeding 55
percent of the entire developed world’s.
This shift in investment activity toward the
Global south coincides with rapid catch-up
growth that began during the 1990s as developing countries integrated into global markets,
underwent structural transformations, and
improved their institutions. assuming a continuation of needed reforms, this catch-up process is
expected to carry on over the course of the next
two decades. in fact, the shift in allocation of
the global capital stock corresponds closely to
a similar rise in developing countries’ share of
global gross domestic product (GDp). Currently,
roughly 70 percent of global GDp is produced
in high-income countries, and that share will
decline to around 50 percent by 2030. indeed,
the capital-to-GDp ratios of developing countries as a group and high-income countries as a
group differ very little, even as the ratio can vary
substantially across individual countries: in both
groups, the size of the capital stock is about 2.5
times the size of annual GDp, and this ratio is
expected to increase gradually over time. as labor
productivity in developing countries catches up
with the higher levels that exist in high-income
countries, the global distribution of capital per
capita will become more equal.
with much higher productivity".
Source: World Bank
