10 Global Insights into a Transforming World from 2019
Every day, global trends are reshaping society and the business landscape.
Today’s infographic from McKinsey Global Institute (MGI) presents a snapshot of 10 insights into how the world is changing, based on its research work from 2019.
How did we get here, and where are we going?
A Connected World in Flux
Globalization is making the world “shrink” every day, as humans and trade become increasingly connected. However, there are signs that point to a new phase of globalization that is leading to different outcomes than prior years.
1. Globalization in Transition
Global exports are fundamentally shifting. Although manufactured goods are traded at higher volumes, certain services have grown up to three times faster.
The compound annual growth rate (CAGR, 2007-2017) for different sectors are as follows:
|Sectors||Global CAGR (% of GDP)|
|Telecom and IT services||7.8%|
|IP charges services||5.2%|
|Financial and insurance services||3.2%|
This has a profound impact on the mix of industries and countries involved in this shift away from goods and towards services. Asia is coming of age in this phase of the global economy.
2. Asia’s Ascent
Trade with and within Asia is rising, and shows no signs of slowing down. The region’s economic might is growing rapidly, and with higher disposable incomes, consumption is growing too.
In China, there is a new dynamic at play.
3. China’s Changing Relationships
Compared to other developed nations, China’s economy is relatively closed. The country is re-balancing its focus towards domestic consumption and relying less on other countries for trade, technology, and capital.
At the same time, the rest of the world is increasingly exposed and tied to China for the same things—and such unequal engagement has a ripple effect on everything from financial markets to flows of technology and innovation.
Technology and the Future of Work
New technologies like artificial intelligence are sparking new opportunities, but they also raise questions about the future of work across geographies and gender.
4. Increasingly Digital India
As the costs of devices and data plummet, India’s digital adoption is surging—it closely competes with China for the highest digital population across everything from smartphone ownership to social media users.
As mass adoption of digital technologies continues, it is poised to add significant economic value to the Indian economy.
|Digital sector||Current economic value||Maximum potential value (2025E)|
|Core digital services|
e.g. IT business process management
|Newly digitizing sectors|
e.g. Financial services
Companies worldwide are also integrating new technologies—changing the nature of work itself.
5. New Geography of Work
By 2030, talent and investment in the U.S. will be concentrated in a few regions—with 60% of job growth coming from just 25 hubs.
These are just some examples of places which see double-digit potential net job growth by 2030. However, all regions will face unique challenges in the next decade.
6. Automation’s Effect on Gender at Work
Globally, women and men are at similar risk of losing their jobs to automation by 2030.
- Women: 107 million FTEs
Share of female employment, 2017: 20%
- Men: 163 million FTEs
Share of male employment, 2017: 21%
*FTE: full time equivalent. Based on midpoint automation scenario.
While everyone needs to adapt in the age of automation, women face more barriers. They spend up to 1.1 trillion hours on unpaid care work, nearly three times that of men (400 billion hours).
Women are also often in lower-paid roles or male-dominated professions. Additionally, many women have less access to digital technology, and limited flexibility to pursue education. These factors make it harder for women to “catch up” and bridge the gap left behind by automation.
Inequalities and Uncertainties
It’s clear that while technology generates opportunities, it also creates new social challenges. Low- and middle-income households face stagnating incomes, higher debt, and rising basic costs.
7. Declining Labor Share of Income
The U.S. labor share of income has been dropping for years—but ¾ of this decline has occurred since 2000.
According to McKinsey Global Institute, boom-bust commodity cycles and rising depreciation are the main factors behind this trend, more so than commonly-cited automation or globalization.
Stagnating incomes mean less purchasing power, while the cost of basics are sharply rising.
8. Changing Consumption Costs
The global inequality gap has narrowed, but within developed economies, it has actually increased.
Technology and globalization have made many discretionary goods cheaper. However, basic costs such as education, housing, and healthcare have ballooned compared to the rate of inflation over the past decade.
With wages stagnating, the higher costs for basics have eaten into disposable incomes in many mature economies.
A Changing Business World
Global trends drastically influence how companies compete with one another, transforming corporate dynamics worldwide.
9. Corporate Superstars
In just two decades, the distribution of economic profits has been growing increasingly wider. The top 10% of companies (>$1 billion in revenue) brings in an ever-larger share of total profits, while the losses of the bottom 10% share deepen.
- Average profit per company, 1995-1997
Top 10%: $0.85B
Bottom 10%: -$1.02B
- Average profit per company, 2014-2016
Top 10%: $1.36B
Bottom 10%: -$1.56B
*In 2016 dollars. Considers corporations with ≥$1 billion average sales (inflation-adjusted). Sample sizes: 2,450 companies (1996–1997) and 5,750 companies (2014–2016).
In essence, the bottom 10% destroy as much value as the top 10% create—and it has only intensified in 20 years.
10. Latin America’s Missing Middle
Latin America best exemplifies this corporate trend of companies “thriving” versus “surviving”.
Compared to similar economies, Latin American countries lack mid-size companies with over $50M in revenue. The Latin American average for firms per $1T GDP is 65 firms, while 100 firms is the benchmark average.
While Asia’s share of the largest firms is widely distributed across countries, Latin American enterprises are lagging behind.
What does the Future Hold?
CEOs and leaders will need to adapt to the new age of disruption—and quickly. To become a 21st century company, they must ask 10 crucial questions about how they operate in an increasingly complex world:
- What is our mission and purpose as a company?
- How far do we go beyond shareholder capitalism? How are we accountable to different stakeholders?
- Who benefits from our economic success? How?
- What is the time horizon for managing our economic success and impact?
- What is our responsibility to our workforce, especially given future-of-work implications?
- How do we leverage data and technology responsibly and ethically?
- What are our aspirations for inclusion and diversity?
- What is our responsibility for societal and sustainability issues involving our business, and beyond?
- What are our responsibilities regarding participants in our platforms, ecosystems, supply and value chains and their impact on society?
- How should we address the global and local (including national) imperatives and implications of how we compete, contribute and operate?
As the 10 insights suggest, global trends are profoundly altering the course of our future. Their impact varies greatly depending on demographics and region.
Everyone—business leaders, policy makers, and individuals worldwide—will need to adapt to the realities of a world in transformation.
The Population of China in Perspective
China is the world’s most populous country. But how does the population of China compare to the rest of the world?
The Population of China in Perspective
China is the world’s most populous country with an astounding 1.44 billion citizens. Altogether, the size of the population of China is larger than nearly four regions combined: South America, Europe (excluding Russia), the U.S. & Canada, and Australia & New Zealand.
Using data from the United Nations, this unconventional map reveals the comparative size of China’s population next to a multitude of other countries.
Note: To keep the visualization easy to read, we’ve simplified the shapes representing countries. For example, although we’ve included Alaska and Hawaii in U.S. population totals, the U.S. is represented by the contiguous states map only.
A Historical Perspective
Looking at history, the population of China has more than doubled since the 1950s. The country was the first in the world to hit one billion people in 1980.
However, in 1979, in an attempt to control the burgeoning population, the infamous one-child policy was introduced, putting controls on how many children Chinese citizens could have.
While the government eventually recognized the negative implications of this policy, it appeared to be too little, too late. The two-child policy was introduced in 2016, but it has not yet reversed the current slowdown in population growth.
|Year||China's Population (Millions)||Annual Rate of Growth (%)||Median Age||Fertility Rate|
The fertility rate has been consistently falling from over 6 births per woman in 1955 to 1.69 in 2020. Today, the median age in China is 38 years old, rising from 22 in 1955. Longer life spans and fewer births form a demographic trend that has many social and economic implications.
Overall, China’s young population is becoming scarcer, meaning that the domestic labor market will eventually begin shrinking. Additionally, the larger share of elderly citizens will require publicly-funded resources, resulting in a heavier societal and financial burden.
Strength in Numbers
Despite these trends, however, China’s current population remains massive, constituting almost 20% of the world’s total population. Right now 71% of the Chinese population is between the ages of 15 and 65 years old, meaning that the labor supply is still immense.
Here are the populations of 65 countries from various regions of the world—and added together, you’ll see they still fall short of the population of China:
|🇺🇸 U.S.||331,002,651||North America|
|🇨🇦 Canada||37,742,154||North America|
|🇧🇷 Brazil||212,559,417||South America|
|🇨🇴 Colombia||50,882,891||South America|
|🇦🇷 Argentina||45,195,774||South America|
|🇵🇪 Peru||32,971,854||South America|
|🇻🇪 Venezuela||28,435,940||South America|
|🇨🇱 Chile||19,116,201||South America|
|🇪🇨 Ecuador||17,643,054||South America|
|🇧🇴 Bolivia||11,673,021||South America|
|🇵🇾 Paraguay||7,132,538||South America|
|🇺🇾 Uruguay||3,473,730||South America|
|🇬🇾 Guyana||786,552||South America|
|🇸🇷 Suriname||586,632||South America|
|🇬🇫 French Guyana||298,682||South America|
|🇫🇰 Falkland Islands||3,480||South America|
|🇳🇿 New Zealand||4,822,233||Oceania|
|🇧🇦 Bosnia and Herzegovina||3,280,819||Europe|
|🇲🇰 North Macedonia||2,083,374||Europe|
|🇸🇲 San Marino||33,931||Europe|
|🇻🇦 Vatican City||801||Europe|
|🇬🇧 United Kingdom||67,886,011||Europe|
|🇮🇲 Isle of Man||85,033||Europe|
|🇫🇴 Faroe Islands||48,863||Europe|
To break it down even further, here’s a look at the population of each of the regions listed above:
- Australia and New Zealand: 30.3 million
- Europe (excluding Russia): 601.7 million
- South America: 430.8 million
- The U.S. and Canada: 368.7 million
Combined their population is 1.432 billion compared to China’s 1.439 billion.
Overall, the population of China has few comparables. India is one exception, with a population of 1.38 billion. As a continent, Africa comes in close as well at 1.34 billion people. Here’s a breakdown of Africa’s population for further comparison.
|🇨🇮 Côte d'Ivoire||26,378,274||Africa|
|🇧🇫 Burkina Faso||20,903,273||Africa|
|🇸🇱 Sierra Leone||7,976,983||Africa|
|🇨🇻 Cabo Verde||555,987||Africa|
|🇸🇭 Saint Helena||6,077||Africa|
|🇿🇦 South Africa||59,308,690||Africa|
|🇪🇭 Western Sahara||597,339||Africa|
|🇨🇩 Democratic Republic of the Congo||89,561,403||Africa|
|🇨🇫 Central African Republic||4,829,767||Africa|
|🇬🇶 Equatorial Guinea||1,402,985||Africa|
|🇸🇹 Sao Tome and Principe||219,159||Africa|
|🇸🇸 South Sudan||11,193,725||Africa|
Future Outlook on the Population of China
Whether or not China’s population growth is slowing appears to be less relevant when looking at its sheer size. While India is expected to match the country’s population by 2026, China will remain one of the world’s largest economic powerhouses regardless.
It is estimated, however, that the population of China will drop below one billion people by the year 2100—bumping the nation to third place in the ranking of the world’s most populous countries. At the same time, it’s possible that China’s economic dominance may be challenged by these same demographic tailwinds as time moves forward.
How to Avoid Common Mistakes With Mining Stocks (Part 5: Funding Strength)
A mining company’s past projects and funding strength are interlinked. This infographic outlines how a company’s ability to raise capital can determine the fate of a mining stock.
A mining company’s past projects and funding strength are interlinked, and can provide clues as to its potential success.
A good track record can provide better opportunities to raise capital, but the company must still ensure it times its financing with the market, protects its shareholders, and demonstrates value creation from the funding it receives.
Part 5: The Role of Funding Strength
We’ve partnered with Eclipse Gold Mining on an infographic series to show you how to avoid common mistakes when evaluating and investing in mining exploration stocks.
Part 5 of the series highlights six things to keep in mind when analyzing a company’s project history and funding ability.
View all five parts of the series:
- 1. Common mistakes made with the team
- 2. Common mistakes made with the business plan
- 3. Common mistakes with the jurisdiction of the project
- 4. Common mistakes with the project and technical risks
- 5. Common mistakes with raising money
Part 5: Raising Capital and Funding Strength
So what must investors evaluate when it comes to funding strength?
Here are six important areas to cover.
1. Past Project Success: Veteran vs. Recruit
A history of success in mining helps to attract capital from knowledgeable investors. Having an experienced team provides confidence and opens up opportunities to raise additional capital on more favorable terms.
- A team with past experience and success in similar projects
- A history of past projects creating value for shareholders
- A clear understanding of the building blocks of a successful project
A company with successful past projects instills confidence in investors and indicates the company knows how to make future projects successful, as well.
2. Well-balanced Financing: Shareholder Friendly vs. Banker Friendly
Companies need to balance between large investors and protecting retail shareholders. Management with skin in the game ensures they find a balance between serving the interests of both of these unique groups.
- Clear communication with shareholders regarding the company’s financing plans
- High levels of insider ownership ensures management has faith in the company’s direction, and is less likely to make decisions which hurt shareholders
- Share dilution is done in a limited capacity and only when it helps finance new projects that will create more value for shareholders
Mining companies need to find a balance between keeping their current shareholders happy while also offering attractive financing options to attract further investors.
3. A Liquid Stock: Hot Spot vs. Ghost Town
Lack of liquidity in a stock can be a major problem when it comes to attracting investment. It can limit investments from bigger players like funds and savvy investors. Investors prefer liquid stocks that are easily traded, as this allows them to capitalize on market trends.
- A liquid stock ensures shareholders are able to buy and sell shares at their expected price
- More liquid stocks often trade at better valuations than their illiquid counterparts
- High liquidity can help avoid price crashes during times of market instability
Liquidity makes all the difference when it comes to attracting investors and ensuring they’re comfortable holding a company’s stock.
4. Timing the Market: On Time vs. Too Late or Too Early
Raising capital at the wrong time can result in little interest from investors. Companies in tune with market cycles can raise capital to capture rising interest in the commodity they’re mining.
Being On Time:
- Raising capital near the start of a commodity’s bull market can attract interest from speculators looking to capitalize on price trends
- If timed well, the attention around a commodity can attract investors
- Well-timed financing will instill confidence in shareholders, who will be more likely to hold onto their stock
- Raising capital at the right time during bull markets is less expensive for the company and reduces risk for investors
Companies need to time when they raise capital in order to maximize the amount raised.
5. Where is the Money Going? Money Well Spent vs. Well Wasted
How a company spends its money plays a crucial role in whether the company is generating more value or just keeping the lights on. Investors should always try to determine if management is simply in it for a quick buck, or if they truly believe in their projects and the quality of the ore the company is mining.
Money Well Spent:
- Raised capital goes towards expanding projects and operations
- Efficient use of capital can increase revenue and keep shareholders happy with dividend hikes and share buybacks
- By showing tangible results from previous investments, a company can more easily raise capital in the future
Raised capital needs to be allocated wisely in order to support projects and generate value for shareholders.
6. Additional Capital: Back for More vs. Tapped Out
Mining is a capital intensive process, and unless the company has access to a treasure trove, funding is crucial to advancing any project. Companies that demonstrate consistency in their ability to create value at every stage will find it easier to raise capital when it’s necessary.
Back For More:
- Raise more capital when necessary to fund further development on a project
- Able to show the value they generated from previous funding when looking to raise capital a second time
- Attract future shareholders easily by treating current shareholders well
Every mining project requires numerous financings. However, if management proves they spend capital in a way that creates value, investors will likely offer more funding during difficult or unexpected times.
Wealth Creation and Funding Strength
Mining companies that develop significant assets can create massive amounts of wealth, but often the company will not see cash flow for years. This is why it is so important to have funding strength: an ability to raise capital and build value to harvest later.
It is a challenging process to build a mining company, but management that has the ability to treat their shareholders and raise money can see their dreams built.
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