The world is poised on the threshold of economic changes that will reduce the income gap between the rich and poor on a global scale while reshaping patterns of consumption. Rapid economic growth in emerging-market economies is projected to enable consumers worldwide to spend proportionately less on food and more on transportation, goods, and services, which will in turn strain the global infrastructure and accelerate climate change. The largest gains will be made in poorer parts of the world, chiefly sub-Saharan Africa and India, followed by China and the advanced economies. In this new study, Tomas Hellebrandt and Paolo Mauro detail how this important moment in world history will unfold and serve as a warning to policymakers to prepare for the profound effects on the world economy and the planet.
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Paolo Mauro was a senior fellow at the Peterson Institute for International Economics from December 2014 to August 2016. Prior to joining the Institute, Mauro worked at the International Monetary Fund for 20 years, including in managerial positions in the research, fiscal affairs, and African departments.Tomas Hellebrandt was a research fellow at the Peterson Institute for International Economics from January 2013 to September 2015. His research focuses on the impact of business behavior and governance on inequality as part of the Inclusive Capitalism Initiative.
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