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

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid