Paolo Mauro and Tomas Hellebrandt, former fellows at the Peterson Institute for International Economics, presented the findings of their new book published by PIIE, World on the Move: Consumption Patterns in a More Equal Global Economy, on January 5, 2017. The Institute thanks the GE Foundation and the Eranda Foundation for their support of this research.
Mauro and Hellebrandt argue that the world is poised to 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, energy, 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, the authors set out how this transformative process in world history will unfold, with its implications for businesses and investors. They also warn policymakers to prepare for the coming profound effects on the world economy and the planet.
Paolo Mauro is currently an assistant director of the African Department at the International Monetary Fund (IMF). He was a senior fellow at the Institute from December 2014 to August 2016. Prior to joining the Institute, Mauro worked at the IMF for 20 years, including in managerial positions in the research, fiscal affairs, and African departments.
Tomas Hellebrandt was a research fellow at the Institute from January 2013 to September 2015. He contributed to Institute research on inequality and inclusive capitalism. Previously, he worked at the Bank of England.