From: Aditya Rana
Date: Sat, Jul 7, 2012 at 2:39 PM
Subject: On Urbanization and the Case for Emerging Markets and Dietary Fibre!
The case for emerging markets equities rests on their superior long-term growth prospects, which in turns depends on the rate of urbanization of the population as workers migrate from rural areas to cities, thereby increasing income levels and productivity. The McKinsey Global Institute has recently released a fascinating report on urbanization and how the rise of these cities is driving the growth of the consumer class, particularly in emerging markets (http://www.mckinsey.com/insights/mgi/research/urbanization/urban_world_cities_and_the_rise_of_the_consuming_class ). To summarise:
-Until 1500, Asia was the centre of gravity of the world economy and contributed roughly two-thirds of global growth. The urbanization and industrialization of Europe and the US led to a shift in the centre gravity to the west, which is now rapidly being reversed on an unprecedented scale (see diagram…
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