Posts tagged ‘McKinsey’

  |  
31/03/2015

What could happen in China in 2015? | McKinsey & Company

What could happen in China in 2015?

What do you get when you add slower economic growth, greater volatility, and rising competition to more international flights and genuine Chinese innovation? McKinsey director Gordon Orr’s annual predictions.

December 2014 | byGordon Orr

It seemed harder to prepare my “look ahead” this year. On reflection, I believe this is because political and economic leaders in China have clear plans and supporting policies that they are sticking to. You can debate the pace at which actions are being taken, but not really the direction in which the country is traveling. This means a number of the themes I highlighted for this year will remain relevant in 2015:

What could happen in China in 2015?

Author Gordon Orr discusses his China predictions with McKinsey director Nick Leung and principal Yougang Chen.

Improving productivity and efficiency will remain the key to maintaining profitability for many companies, given lower economic growth (overall and at a sector level) and the impact of producer price deflation on multiple sectors.

The impact of technology as it eliminates jobs in services and manufacturing will become even greater (but still not in government).

As a result, the government will keep a sharper focus on net job creation and the quality of those new positions. Companies will hire even more information technologists to keep up in the race to exploit technology better than their competitors.

The push to lower pollution, and now carbon emissions, will lead to even greater investment in domestic solar and wind farms, boosting the global position of Chinese producers.

High-speed-rail construction will continue domestically and increasingly abroad, as Chinese companies become the builder of choice for high-speed rail globally.

Beyond these, there are several additional themes that will be important in 2015. I describe them below.

What else may happen in 2015? – see article:

via What could happen in China in 2015? | McKinsey & Company.

Posted in China alert, Economics, Politics, Social & cultural | Leave a Comment »

Tags: , , , , , , , , , , , ,
20/02/2014

A New Way to Measure Poverty in India – India Real Time – WSJ

How should you measure poverty?

It is a question that has generated enormous controversy in India. The country’s government says that since the mid-1990s, the number of people living below the official poverty line has dropped by more than half, hitting 270 million, or 22% of the population, in 2012.

Still, India continues to rank extremely low in United Nations’ measures of well-being. India ranked 136 out of 186 countries in the 2012 U.N. Human Development Index and 94 out 119 in the U.N. World Food Programme’s Global Hunger Index.

The Indian government sets its official poverty line at 816 rupees per person per month in rural areas and 1,000 rupees per person per month for city dwellers. That works out to about 40 cents a day in the countryside and 50 cents a day in the city.

A new study by the McKinsey Global Institute – the research arm of consulting company McKinsey – says that such a gauge of extreme poverty has its place. But it argues India should focus instead on a more comprehensive measure of what it would take to satisfy a person’s basic needs for food, energy, housing, drinking water, sanitation, healthcare, schooling and social security.

McKinsey calls its new measure an “empowerment line.” It is the level where the report’s authors conclude that India’s citizens can get out of poverty and have the resources to build better lives for themselves, rather than scrape along at subsistence levels. McKinsey set its empowerment line at 1,336 rupees a month – roughly 50% above the government poverty line.

“It’s an expanded definition of poverty and aims to calculate the escape velocity needed to get people sustainably out of poverty,” said Anu Madgavkar, a senior fellow at the institute in Mumbai.

According to McKinsey’s calculations, about 680 million people, or 56% of Indians, now live below the empowerment line. Insufficient and ineffective public programs, poor agricultural productivity and a lack of better jobs all conspire to keep people poor.

via A New Way to Measure Poverty in India – India Real Time – WSJ.

Enhanced by Zemanta

Posted in Economics, India alert, poverty | Leave a Comment »

Tags: , , , , , , , , ,
18/12/2013

Reimagining India: Unlocking the Potential of Asia’s Next Superpower – McKinsey & Co

India’s rising economy and burgeoning middle class have earned it a place alongside China as one of the world’s indispensable emerging markets. But what is India’s true potential? And what can be done to unlock it?

Reimagining India

In Reimagining India: Unlocking the Potential of Asia’s Next Superpower, McKinsey brings together leading thinkers from around the world to explore and debate the challenges and opportunities facing the country. The book’s contributors include CNN’s Fareed Zakaria; Microsoft cofounder Bill Gates; Google chairman Eric Schmidt; Mukesh Ambani, the CEO of India’s largest private conglomerate; Harvard Business School dean Nitin Nohria; and Nandan Nilekani, cofounder of Infosys and chairman of the Unique Identification Authority of India, as well as a host of other leading executives, entrepreneurs, economists, foreign-policy experts, journalists, historians, and cultural luminaries.

As the foreword notes, “While McKinsey consultants have contributed a few essays to this volume, Reimagining India is not the product of a McKinsey study; neither is it meant as a ‘white paper’ nor coherent set of policy proposals. Rather, our aim was to create a platform for others to engage in an open, free-wheeling debate about India’s future.”

http://www.mckinsey.com/features/reimagining_india_book

Simon & Schuster (US) | Executive editors: Clay Chandler and Adil Zainulbhai

Posted in Economics, India alert, superpower | 1 Comment »

Tags: , , , , , , , ,
20/11/2013

Reimagining India | McKinsey & Company

India’s rising economy and burgeoning middle class have earned it a place alongside China as one of the world’s indispensable emerging markets. But what is India’s true potential? And what can be done to unlock it?

Reimagining India

In Reimagining India: Unlocking the Potential of Asia’s Next Superpower, McKinsey brings together leading thinkers from around the world to explore and debate the challenges and opportunities facing the country. The book’s contributors include CNN’s Fareed Zakaria; Microsoft cofounder Bill Gates; Google chairman Eric Schmidt; Mukesh Ambani, the CEO of India’s largest private conglomerate; Harvard Business School dean Nitin Nohria; and Nandan Nilekani, cofounder of Infosys and chairman of the Unique Identification Authority of India, as well as a host of other leading executives, entrepreneurs, economists, foreign-policy experts, journalists, historians, and cultural luminaries.

As the foreword notes, “While McKinsey consultants have contributed a few essays to this volume, Reimagining India is not the product of a McKinsey study; neither is it meant as a ‘white paper’ nor coherent set of policy proposals. Rather, our aim was to create a platform for others to engage in an open, free-wheeling debate about India’s future.”

via Reimagining India | McKinsey & Company.

Posted in Economics, India alert, Politics | Leave a Comment »

Tags: , , , , , , , , ,
20/10/2013

The Balance of Global Corporate Power Is Sliding Eastward – Businessweek

… a new report from the McKinsey Global Institute forecasts the economic future not of nations, but of dominant global companies. Today there are roughly 8,000 companies worldwide with annual revenues exceeding $1 billion. Together these heavy hitters generate consolidated global revenue equivalent to 90 percent of global gross domestic product, or $57 trillion. Three out of four of these leading companies are located in developed countries, but McKinsey predicts the balance of power will gradually shift eastward and southward.

Half of all large global corporations are headquartered in the U.S., Canada, and Western Europe, which together account for 11 percent of global population. Meanwhile, only 2 percent of large global corporations are based in South Asia, where 23 percent of the world’s population lives.

By 2025, McKinsey predicts another 7,000 companies will surpass annual revenues of $1 billion, and that 7 out of 10 of these emerging companies will be headquartered in the developing world. In particular, the report names Chinese telecommunications giant Huawei, Brazilian aircraft manufacturer Embraer (ERJ), and Indian industrial conglomerate Aditya Birla Group as examples of emerging titans.

The impacts of the gradual shift won’t be felt only in corporate boardrooms. “This geographic rebalancing … will shift more of the world’s decision making, capital, standard setting, and innovation to emerging markets,” the report says. Perhaps in the future, professionals in the U.S. and Europe may have reason to worry if Alibaba or Tencent (700:HK) halt services unexpectedly for a week.

via The Balance of Global Corporate Power Is Sliding Eastward – Businessweek.

Posted in China alert, Economics, India alert | Leave a Comment »

Tags: , , , , , , , , , , ,
  |  
CCChang

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India