Combine this connectedness with rapidly changing demographics, shifting values and attitudes, growing political uncertainty and it’s clear the next decade is setting up to be one of historic transformation.
Visual Capitalist have identified 8 forces they think are going to change the future of the globe.
- Tech Invasions
- Evolution of Money
- Wealth Landscape
- Eastern Promises
- Accelerating Tech Progress
- Green Revolution
- Shifting Human Geography
- Trade Paradox
1. THE TECH INVASION
For most of the history of business, the world’s leading companies have been industrially-focused.
Pioneers like Henry Ford and Thomas Edison innovated in the physical realm using atoms – they came up with novel ways to re-organize these atoms to create things like the assembly line and the incandescent lightbulb. Then, companies invested massive amounts of capital to build physical factories, pay thousands of workers, and build these things.
The majority of the great blue chip companies were built this way: IBM, U.S. Steel, General Electric, Walmart, and Ford are just some examples.
But today’s business reality is very different. We live in a world of bytes – and for the first time technology and commerce have collided in a way that makes data far more valuable than physical, tangible objects.
The best place to see this is in how the market values businesses.
2. THE EVOLUTION OF MONEY
Money is arguably one of humanity’s most important inventions. From beaver pelts to gold bars, the form and function of money has constantly fluctuated throughout history.
In the modern world, the definition of money is blurrier than ever. Central banks have opted to create trillions of dollars of currency out of thin air since the financial crisis – and on the flipside, you can actually use blockchain technology to create your own competing cryptocurrency in just a few clicks.
Regardless of what is money and what is not, people are borrowing record amounts of it.
The world has now amassed $247 trillion in debt, including $63 trillion borrowed by central governments:
3. THE WEALTH LANDSCAPE
Wealth is not stagnant – and so for those looking to make the most out of global opportunities, it’s imperative to get a sense of how the wealth landscape is changing.
The modern view is either extremely healthy or bubbly, depending on how you look at it: Amazon and Apple are worth over $1 trillion, Jeff Bezos has a $100+ billion fortune, and the current bull market is the longest in modern history at 10 years.
Will this growth continue, and where will it come from?
Here’s one look based on projections from the World Bank:
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