Cities are highly complex ecosystems. Their contribution to global economic growth is explained in more granular detail by the McKinsey Global Institute in their recent report, Pixels of Progress. The analysis covers the years 2000-2019. It includes 178 countries and more than 40,000 microregions. McKinsey offers unique insights into pockets of progress and prosperity often masked by country-level averages. Examples cited include, e.g., Lima, Peru & Manchester, England, or Goa, India & Porto, Portugal. These comparable regions sit within countries (Portugal, India, Peru, and England) at markedly different stages of overall development. For business development specialists, microregional analysis matters. This analysis is critical when benchmarking levels of prosperity and health across borders to better capture market opportunities. Insights and conclusions from the report may counter traditional stakeholders’ common perceptions and prescriptions.
Global growth and market opportunities
For market research and business teams, understanding your market is crucial. Looking at global growth over the past 20 years, can we spot the market opportunities? Since 2000, global growth has been strong. By 2019, nearly half of the world’s population achieved greater prosperity (USD 8,300 GDP/Capita). Health outcomes also improved( life expectancy >72.5 years) compared to just 21% of the population two decades prior. As expected, China remained the breakout story, generating half of the growth. The other half of the growth was spread over 75 countries, including Columbia, Egypt, Türkiye, Morocco, the Philippines, Vietnam, etc.
Generally, the McKinsey data use case primarily focuses on deeper insights to create more expansive models of growth and prosperity. What about this growth’s impact on the environment, climate, and natural resource use? The report appears to sidestep this issue. The authors plan to address this in future research depending on data availability and quality. By 2050 nearly 70% of the world’s population will inhabit cities. Understanding these microregional growth patterns and their impact on resource use and climate change is becoming more urgent. Further analysis may lead to more thoughtful approaches to addressing climate change.
Partnering for urban-based solutions
At ClearSky 2100 Ventures, we recently partnered with Provectus Enterprising to capture opportunities in the circular economy. Provectus is an emerging player in micro-waste recycling infrastructure and green citizenship models. We continue to advocate for a “smaller is better” approach utilizing micro-infrastructure hubs. This approach is key to strengthening climate resilience in megacities across the Global South. Technology must be effectively blended with highly inclusive stakeholder models. More broadly, the McKinsey insights are invaluable for companies and governments seeking to develop more targeted approaches in creating a circular economy and other sustainability initiatives.
Click here for a link to the report
