In the third edition of the McKinsey Global Institute Research Update, we highlight the findings of two new reports based on a year-long MGI research project on global capital markets and new research examining the impact of trade on jobs in the U.S.
GRAYING POPULATIONS COLOR GLOBAL SAVINGS PICTURE The aging of the developed world is creating a global savings shortfall that could radically transform the financial wealth of households, businesses, and government, according to MGI's report,"The Coming Demographic Deficit: How Aging Populations Will Reduce Global Savings." Over the next two decades, absent dramatic changes, growth in household financial wealth will slow by more than two-thirds. Demographic pressures on wealth accumulation can be counteracted through policy adjustments, but it will not be easy. (This feature includes a slideshow, MP3 audio article, and video interview). Read more
MAPPING THE WORLD'S CAPITAL MARKETS Based on the financial assets of more than 100 countries since 1980, MGI's report, "$118 Trillion and Counting: Taking Stock of the World's Capital Markets," has developed a comprehensive profile of the global capital market and how it is evolving across geographies and asset classes. MGI found that the global financial stock, which now totals more than $118 trillion, could increase to $200 trillion by 2010. It has grown faster than the world's gross domestic product with most of this growth coming from a rapid expansion of debt. Meanwhile, the role countries and regions play in the global capital market is changing. (This feature includes an interactive graphic, a video interview, and a collection of exhibits from The McKinsey Quarterly for download). Read more
U.S. JOB LOSSES: IS TRADE TO BLAME? A McKinsey Quarterly article by noted economists Martin Baily and Robert Lawrence makes the case that trade, particularly rising imports of goods and services, hasn't destroyed the vast majority of the jobs lost in the United States since 2000. This work is the first complete analysis of how the economic downturn, imports, exports, and global competition interact–directly and indirectly–to affect employment. Read more on the McKinsey Quarterly site
NEW APPOINTMENTS AT MGI We are pleased to announce that Martin Baily, a senior fellow at the Institute for International Economics and a former head of the White House Council of Economic Advisors, has joined MGI as a senior advisor. Adam Schwarz, an expert on Asia's political economy, has joined MGI as a senior fellow based in Singapore as part of MGI's ongoing effort to increase its presence and knowledge development in Asia. Susan Lund, an economist and former member of the McKinsey Quarterly board of editors, has also joined MGI as a senior fellow based in Washington to contribute to MGI research and publications. Read more
UPCOMING RESEARCH MGI now has underway a major new study to continue our extensive work in the area of global industry restructuring and offshoring, which will be available in the second quarter of this year. Based on an analysis of detailed sector case studies, we evaluate the current and future demand for employment to determine which occupations can benefit from global resourcing and to what degree. We are also developing supply estimates that consider location attractiveness, wages and, most importantly, the labor talent pool that are actually available in both developed and developing countries to match demand. Sign up for our news alert to receive an e-mail when this report is published.
MGI IN THE NEWS In an op-ed in the Financial Times, we argue that there's a silver lining to the U.S. trade deficit. The activities of foreign subsidiaries create value for the U.S. and the world, even if the trade accounts look worse. Please read this and other publications that feature MGI research in MGI in the news.
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McKinsey Global Institute 2006 Research in Review December 2006 Read more
Preparing for a Massive Middle Class in China… Comparing the Financial Systems of China and India …Advance Copies of MGI Anthologies From Harvard Business School Press November 2006 Read more
The Value of financial system reforms in China and India…China’s emerging middle class…Mapping the global capital market…Smarter offshoring June 2006 Read more
