News / Africa

Developing World Investment to Rise

2013 edition of Global Development Horizons report sees large investment growth in developing world.
2013 edition of Global Development Horizons report sees large investment growth in developing world.

Multimedia

Audio
  • Listen to De Capua story on Global Development Horizons report

Joe DeCapua
The developing world is poised to become a major player in global investment. The World Bank says in fewer than 20 years half the global stock of capital will be in developing countries. That compares to about one-third today. The bank has released the latest edition of its Global Development Horizons report.


The World Bank forecasts, by 2030, “developing countries’ share in global investment is projected to triple” to nearly 160-trillion dollars. Chief Economist and Senior Vice-President Kaushik Basu said that “demographic changes will profoundly influence structural shifts.”

“Population will increase from the current roughly seven billion to eight-point-five billion at the end of 2030. Some societies will be well advanced in the process of aging. The demographic bulge in different countries will progress at different paces. And the big question that should concern us all is what will happen to the major drivers of growth and development, namely savings and investment – and in particular, infrastructural investment.”

The report is being released during – what Basu called – troubling times. He said there is a “decoupling between the world of finance and the real economy.”

“By most financial indicators we are doing better, distinctly better, actually, than a year ago. But if you look at the real economy, including the news that came from Europe, the recession is prolonging. Europe is probably into the longest stagnation since 1945. There is a trap lurking at every level of income for every country. Policymakers have to be aware of that,” he said.

He admitted that long-term economic forecasting can be difficult. However, he said that the Global Development Horizons report reveals “a host of interesting trends.”

“By 2030, we are also being told that China and India will be the largest investors in the world. Developing countries will account for 47 to 60 percent of global capital flows in 2030. This is an amazing shift from the current roughly 23 percent,” he said.

That’s expected to continue until the late 2030s, when another region will rise.

“At that stage,” he said, “the demographic dividend will be on the rise in sub-Saharan Africa. A lot of our global attention will no doubt turn to the great opportunities that will happen in sub-Saharan Africa.”

The report paints a scenario of deeper financial market development there. It adds that foreign investors will become much more willing to invest in the region. Also, sub-Saharan Africa will have a much younger labor force than many other parts of the world.

“By 2030, for every dollar that will be invested in the world 60 cents will be invested in developing countries. This is a dramatic change with respect to the past. For almost four decades, from the 60s to the 90s and 2000, the investments were only 20 cents to the dollar. So this is a major change,” said  Maurizio Bussolo, lead author of the World Bank report.

Bussolo added that by 2019, total investment share in developing countries will overtake the total investment by developed nations.

“This is happening even though we foresee the investment rates coming down across all the regions. This is because growth will decelerate from [a] very high level and there will be a lot of churning within countries where investment will shift toward service sectors from agricultural and manufacturing.”

The report also says that “unlike in the past, developing countries will likely have the resources needed to finance massive future investments for infrastructure and services, including education and health care.”

Education is described as the best opportunity for policymakers to increase the earning capacity of its poor citizens.

You May Like

Yemen Brings US, Iran Closer to Naval Face-off

US sending two more ships to waters off coast of Yemen to take part in 'maritime security operations' More

Minorities Become Majority Across US

From 2000 to 2013, minorities became the majority in 78 counties in the United States. Here's where those demographic shifts are happening More

Japan's Maglev Train Breaks Own Speed Record

Seven-car 'magnetic levitation' train traveled at more than 600 kilometers per hour during test run Tuesday More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
New Brain Mapping Techniques Could Ease Chronic Paini
X
Shelley Schlender
April 20, 2015 7:03 PM
Pain has a purpose - it can stop you from touching a flame or from walking on a broken leg. As an injury heals, the pain goes away. Usually. But worldwide, one out of every five people suffers from pain that lasts for months and years, leading to lost jobs, depression, and rising despair when medical interventions fail or health experts hint that a pain sufferer is making it up. From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video New Brain Mapping Techniques Could Ease Chronic Pain

From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video Hope, Prayer Enter Fight Against S. Africa Xenophobia

South Africa has been swept by disturbing attacks on foreign nationals. Some blame the attacks on a legacy of colonialism, while others say the economy is to blame. Whatever the cause, ordinary South Africans - and South African residents from around the world - say they're praying for the siege of violence to end. Anita Powell reports from Johannesburg.
Video

Video Italy Rescues Migrants After Separate Deadly Capsize Incident

Italy continued its massive search and rescue operation in the Mediterranean Monday for the capsized boat off the coast of Libya that was carrying hundreds of migrants, while at the same time rescuing Syrian migrants from another vessel off the coast of Sicily. Thirteen children were among the 98 Syrian migrants whose boat originated from Turkey on the perilous journey to Europe.
Video

Video New Test Set to Be Game Changer in Eradicating Malaria

The World Health Organization estimates 3.4 billion people are at risk of malaria, with children under the age of five and pregnant women being the most vulnerable. As World Malaria Day approaches (April 25), mortality rates are falling, and a new test -- well into the last stage of trials -- is having positive results in Kenya. Lenny Ruvaga reports for VOA from Nairobi.
Video

Video Are Energy Needs Putting Thailand's Natural Beauty at Risk?

Thailand's appetite for more electricity has led to the construction of new dams along the Mekong River to the north and new coal plants near the country's famous beaches in the south. A proposed coal plant in a so-called "green zone" has touched off a debate. VOA's Steve Sandford reports.
Video

Video Overwhelmed by Migrants, Italy Mulls Military Action to Stabilize Libya

Thousands more migrants have arrived on the southern shores of Italy from North Africa in the past two days. Authorities say they expect the total number of arrivals this year to far exceed previous levels, and the government has said military action in Libya might be necessary to stem the flow. VOA's Henry Ridgwell reports.
Video

Video Putin Accuses Kyiv of ‘Cutting Off’ Eastern Ukraine

Russian President Vladimir Putin, in his annual televised call-in program, again denied there were any Russian troops fighting in Ukraine. He also said the West was trying to ‘contain’ Russia with sanctions. Henry Ridgwell reports on reactions to the president’s four-hour TV appearance.
Video

Video Eye Contact Secures Dog's Place in Human Heart

Dogs serve in the military, work with police and assist the disabled, and have been by our side for thousands of years serving as companions and loyal friends. We love them. They love us in return. VOA’s Rosanne Skirble reports on a new study that looks at the bio-chemical bond that cements that human-canine connection.
Video

Video Ukrainian Volunteers Search for Bodies of Missing Soldiers

As the cease-fire becomes more fragile in eastern Ukraine, a team of volunteer body collectors travels to the small village of Savur Mohyla in the what pro-Russian separatists call the Donetsk Peoples Republic - to retrieve bodies of fallen Ukrainian servicemen from rebel-held territories. Adam Bailes traveled with the team and has this report.
Video

Video Xenophobic Violence Sweeps South Africa

South Africa, long a haven for African immigrants, has been experiencing the worst xenophobic violence in years, with at least five people killed and hundreds displaced in recent weeks. From Johannesburg, VOA’s Anita Powell brings us this report.
Video

Video Apollo 13, NASA's 'Successful Failure,' Remembered

The Apollo 13 mission in 1970 was supposed to be NASA's third manned trip to the moon, but it became much more. On the flight's 45th anniversary, astronauts and flight directors gathered at Chicago's Adler Planetarium to talk about how the aborted mission changed manned spaceflight and continues to influence space exploration today. VOA’s Kane Farabaugh reports.
Video

Video Badly Burned Ukrainian Boy Bravely Fights Back

A 9-year-old Ukrainian boy has returned to his native country after intensive treatment in the United States for life-threatening burns. Volodia Bubela, burned in a house fire almost a year ago, battled back at a Boston hospital, impressing doctors with his bravery. Faith Lapidus narrates this report from VOA's Tetiana Kharchenko.
Video

Video US Maternity Leave Benefits Much Less Than Many Countries

It was almost 20 years ago that representatives of 189 countries met at a UN conference in Beijing and adopted a plan of action to achieve gender equality around the world. Now, two decades later, the University of California Los Angeles World Policy Analysis Center has issued a report examining what the Beijing Platform for Action has achieved. From Los Angeles, Elizabeth Lee has more.
Video

Video Endangered Hawaiian Birds Get Second Chance

Of the world's nearly 9,900 bird species, 13 percent are threatened with extinction, according to BirdLife International. Among them are two Hawaiian honeycreepers - tiny birds that live in the forest canopy, and, as the name implies, survive on nectar from tropical flowers. Scientists at the San Diego Zoo report they have managed to hatch half a dozen of their chicks in captivity, raising hopes that the birds will flutter back from the brink of extinction. VOA’s George Putic reports.
Video

Video Exhibit Brings Renaissance Master Out of the Shadows

The National Gallery of Art in Washington has raised the curtain on one of the most intriguing painters of the High Renaissance. Mostly ignored after his death in the early 1500s, Italian master Piero di Cosimo is now claiming his place alongside the best-known artists of the period. VOA’s Ardita Dunellari reports.

VOA Blogs