The regions along this diagonal of growth have many of the building blocks to create a new era of prosperity, such as vast water resources and biodiversity, plus strengths in industries such as food, biotechnology and commodities. They also have growing populations, expanding middle classes, and the capacity and know-how for ground-breaking innovations and technological advances.
In a world where demand for food is expected to increase as the global population rises to an estimated 9.7 billion in 2050, South America’s rich biodiversity and diverse range of crops means it is positioned well as a food superpower of the future. Similarly, the vast deposits of lithium, copper, cobalt, silver and graphite in South America will be needed to feed the huge, expected demand for critical minerals and metals that go into electric batteries as we embark on a sustainability transition.
Africa combines a wealth of resources with a huge demographic dividend. As the world grapples with ageing populations and shrinking workforces, Africa’s working-age population is expected to grow from 670 million in 2022 to approximately 1.25 billion by 2050.
As well as prospects from economic diversification in the Middle East, there are both the huge existing reserves of oil and gas and the huge potential from new, renewable energy sources such as solar and hydrogen in the region.
And in Southeast Asia and China they have fast-growing middle classes, as well as exciting new hotbeds of innovation in areas such as biotechnology, AI and new energy. Southeast Asia, for example, has more than 50 unicorns, and many others that we call “soonicorns” – companies that will soon become unicorns.
When combined with the enthusiasm and long-term thinking I am hearing and seeing across the regions within this diagonal of growth, the potential opportunities are huge.
If we can channel our know-how, apply our expertise, offer our support and drive a convergence in GDP per capita from the average of around USD 7,500 measured across Africa, South America, the Middle East, India, South East Asia and China, toward the USD 41,000 measured in Europe and the USD 80,000 registered in the United States, the impact on the world economy could be considerable: this could significantly lift living standards for millions and create a new era of global prosperity.
But to realise this vision, these regions within the diagonal of growth need connectivity to match capital with opportunities.