IMF Report: Equality and Efficiency
My Global Hustle
Africa on the Come Up
"During the past 10 years, six of the world’s fastest-growing economies have been in sub- Saharan Africa, according to the Economist magazine. Over the next five years, the Democratic Republic of the Congo, Ethiopia, Ghana, Mozambique, Nigeria, Tanzania and Zambia may grow at an average of 7.2 percent annually, the Economist says. Over this period, the average African economy will outpace its counterpart in Asia. Africa has become an important emerging market and, compared with other regions, it has a relatively high rate of return on investments."
Fulfilling the promise of Latin America’s cities
Latin America is a bright spot
 in the postrecession global economy, with growth rebounding strongly in much of the region. But to lengthen today’s strides toward recovery into a sustained period of rising prosperity, it must take full advantage of its cities’ economic potential.
The region is more urban than any other in developing markets, with 80 percent of its population living in cities, compared with about 50 percent in China. The shift from country to town has contributed much to Latin America’s growth, as economies of scale have raised the productivity of expanding cities and reduced the cost of delivering their basic services.1 Cities are critical to Latin America’s overall economy.2 The region’s 198 large ones—defined as having populations of 200,000 or more—together contribute more than 60 percent of GDP. The 10 largest alone generate half of that output. Such a concentration of urban economic activity in the largest cities makes Latin America comparable to the United States and Western Europe in this respect but not to many other emerging regions. China’s top ten cities, for instance, contribute around 20 percent of the nation’s GDP.
The making of an emerging-market champion
Few companies from emerging markets have grown into successful multinational enterprises. One business that has is the packaged-goods company Grupo Bimbo. Founded in Mexico in 1945 by Lorenzo Servitje, the publicly traded company now holds the title of the world’s largest baker, with sales exceeding $10 billion in 2010. Just over half of those sales came from outside its home market—namely China; many Latin American countries, including Argentina and Brazil; and the United States. The company trades under several well-known brands, including Entenmann’s and Thomas’ in the United States, and the ubiquitous Bimbo brand in Latin America.
