Thursday, May 19, 2011

'Population a ... part of 3G (Global Growth Generator) index' -CITIGROUP

'Population a headache but part of 3G index' By Ding Cervantes (The Philippine Star) Updated March 01, 2011 12:00 AM Comments (3)
CLARK FREEPORT, Pampanga , Philippines  – A runaway population may be a headache, but for Citigroup it’s part of the global growth generator or 3G index, which can signal huge growth potential for the Philippines and 10 other countries.
“Using that index the nations to watch over the coming years are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, the Philippines, Sri Lanka and Vietnam,” said Citigroup chief economist Willen Buiter in an article written by Patrick Allen of CNBC.com for USA Today. Buiter called 3G a “measure of economic progress.”
“They are our 3G countries,” he said, referring to the 11 nations.
“For poor countries with large young populations, growing fast should be easy: open up, create some form of market economy, invest in human and physical capital, don’t be unlucky and don’t blow it. Catch up, and convergence should do the rest,” Buiter added.
“The world is going to become richer and richer as developing economies play catch up over the coming years,” he said.
“Occasionally, there will be growth disasters, driven by poor policy, conflicts, or natural disasters. When it comes to that, don’t believe that ‘this time it’s different’,” he said.
“There are some easy wins for poor countries with big, young populations,” he said.
“We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050,” Buiter added.

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