Another Global Megatrend

Check out this “megatrend”: 97% of global population growth over the next 40 years will occur in Asia, Africa, Latin America and the Caribbean, says the shiny new 2009 World Population Data Sheet. The headline data point was the total growth projection for the world population: 7 billion by 2011. That’s a 200 million extra people on this Earth in just two years.

But it’s the fine print that’s really getting our attention. Here are the highlights… some serious investment trends, to say the least:

  • 90% of the world’s youth, about 1.2 billion people, live in developing nations
  • Africa’s population just passed 1 billion and is set to double by 2050.
  • Half of the population growth in the U.S. and Canada over the next two years will come from immigration
  • By 2050, India’s population will reach 1.7 billion, passing China as the world’s most populous nation.

That last one was a particular surprise to us. In fact, the whole rundown of world population growth by nation is worth a quick look:


To further illustrate this point, you have to check out this array of animated charts on “Future Human Capital”. They are too complex for our humble 5 Min., but shouldn’t be missed.

All these data point to the same conclusion: The world is becoming increasingly less Amero-centric.

“Populations are rising,” says Chris Mayer. “The amount of arable land is in decline, thanks to desertification, urbanization and other factors. Water tables are dropping fast — Beijing is sinking eight inches per year!

“As I said in Vancouver, I don’t see how, when we look at the world in three-five years, the market for irrigation equipment is not substantially bigger than it is today. The Asian countries have the money to build new irrigation systems. They just have to decide to make that a top priority. China already gives its farmers subsidies to purchase equipment. I expect we’ll see more of this from other countries too.

“That’s one example of a great long-term idea that this short-term market crunch could give you a great chance to own.”

The Daily Reckoning