About

Over the next 25 years, developing countries will move to center
stage in the global economy. Global Economic Prospects 2007:
Managing the Next Wave of Globalization analyzes the opportunities—
and tensions—this will create. While rich and poor countries alike stand to
benefit, certain stresses already apparent today—in income inequality, in
labor markets, and in the environment—will become more acute.
By 2030, the world’s population will have risen from some 6.5 billion to
8 billion, with more than 97 percent of this growth in developing countries.

Over the next 25 years, rapid technological progress, burgeoning trade
in goods and services, and the increased integration of financial markets will
facilitate faster long-term growth. However, some regions, notably Africa,
are at risk of being left behind. Moreover, even though many in the developing
world are likely to enter what can be called the “global middle class,”
income inequality could widen within many countries. At the same time,
low-wage competition from China, India, and other developing countries—
not only in goods trade but also in services—will place additional pressure
on an integrating global market for labor. Unskilled workers, in particular,
may fall farther behind. Managing these forces will place a new burden on
national policy makers—and on the international community as a whole—
to ensure that the opportunities of global integration are broadly shared.
The coming globalization will also see intensified stresses on the “global
commons.” Addressing global warming, preserving marine fisheries, and
containing infectious diseases will require effective multilateral collaboration
to ensure that economic growth and poverty reduction proceed without
causing irreparable harm to future generations.

Global Economic Prospects 2007: Managing the Next Wave of Globalization
builds on an analysis of short-term prospects for the world economy to
present scenarios for its future, analyzing the challenges that policy makers
confront today in shaping the world economy of tomorrow.
For additional information, please visit www.worldbank.org/prospects.
To access Prospects for the Global Economy, an online companion publication,
please visit www.worldbank.org/globaloutlook.