Global Economic Growth Will Bring New Challenges

Paolo Mauro and Tomas Hellebrandt discuss their new book, World on the Move, which argues that a projected reduction in the income gap between the rich and poor across the globe in the next 20 years will bring many new challenges to policymakers. As incomes rise, consumers worldwide are projected to spend proportionately less on food and more on transportation, energy, and services, which will in turn strain the global infrastructure and accelerate climate change. The largest income gains will be made in poorer parts of the world, chiefly sub-Saharan Africa and India, followed by China and the advanced economies. Mauro and Hellebrandt warn policymakers to prepare for the coming profound effects on the world economy and the planet.