How to meet the next big growth challenge

The global economy is undergoing very large structural shifts, driven by three mega-trends. One is the digital transformation of the foundations on which economies are built and run. Another is the growing purchasing power and economic strength of emerging economies, China in particular. And third, there are broad-based political economy trends, which include rising nationalism, various forms of populism, political and social polarization, and a possible breakdown of the multilateral framework within which the global economy has functioned since the end of World War II.

The media devote most of their attention to the economic, social and regulatory challenges arising from these megatrends, and to the trade, investment and technology tensions between China and the United States. Yet a significant share of the world's population lives in poor countries, or in poorer parts of developing countries. Besides, the rapid reduction in global poverty over the past three decades is primarily the result of sustained growth in developing economies.

Lower-income nations can seize growth opportunities