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Mark Florman. June 2013. The World. The World in 1991. 46%. The World in 2013. GINI index. 22%. Source: World Bank. Shifting Demographics. Old vs. Young. Old - Indebted 35% of WG. Young – No Debt 65% of WG. 2013 – Where are all the <30s?. Source: US Census Bureau.
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Mark Florman June 2013
The World in 2013 GINI index 22% Source: World Bank
Old vs. Young Old - Indebted35% of WG Young – No Debt 65% of WG
2013 – Where are all the <30s? Source: US Census Bureau
World Urbanisation 2012: 50% 2030: 60% Source: Global Trends 2030, National Intelligence Council
World Population Growth 18% 13% 7 BILLION 70% 2012 15% 18% 9.3 BILLION Source: United Nations Population Fund 67% 2050 Least Developed Countries Less Developed Countries More Developed Countries
Global Middle Class Consumption • 2000 • 65% Old World • 2050 • 20% Old World
Demographic Facts • Japan & Germany:World’s Oldest Populations • European Elderly:58m more by 2050 • European workforce ratio: 1/2 approaches
Resources Land Water Minerals
How Springboard Economy Springboard Society
Migration Old World Shortages STEM Young New WorldSurpluses STEM Young
Europe • Unprecedentedgrowth in productivity requiredfrom investing in Physical Capital Knowledge Capital HumanCapital
New Flat World • Connected & communicating • Constant fight over resources • Working old & poor • Instability & anger • Online education • Sustainable energy
Springboard Economy • Schools: STEM & business • Angel & Venture • Innovation ecosystems • Productivity • Apprenticeships
Springboard Society • No one left behind • Business responsibility • Social impact industry • Back to work • One million jobs • Slavery (CSJ)
UK Statistics 16% 53 MILLION 45% 39% 2013 30% 36% 63 MILLION Source: HM Treasury Source: Office of National Statistics 34% 2060 0-35 years old 36-65 years old Public Sector net debt as a % of GDP 66+ years old
Current State of the UK • Living beyond our means • Overtaxed • Mortgaged the future • Inward Facing • Short termist • Lack of innovation • Need growth of 3% p.a.
Long Term Solution • Promote innovation investments • Environment for flexible talent development • Encourage entrepreneurship • Shape disruptive technologies • Foster ecosystems
Short Term Spending Review • HMT will make £11.5bn overall savings from Government departments year 2015/16. • NHS budget to help fund investment in social care. • Investments in long-term capital infrastructure. • Will announce sums allocated to Local Enterprise Partnerships.
Facts on UK Housing • 1.8 million households on waiting lists • 60,000 households made homeless per year • 4.6 million homes needed in next 20 years • 2,000 housing associations • Demographics and new household formation increases pressure • Income-housing cost ratio worsening • Impact of universal credit on credit quality of HA’s
Homes & Communities • Communities that support each other • Innovation in work/home environments • Socially inclusive societies • Early intervention to support families
Invest in Communities • Construction & housing key catalyst to UK GDP • Private investment via social impact investing • Tax relief for social enterprises • Support new social enterprises • Private equity & venture capital • Static communities • Innovation in Elderly & Social Care
Invest in Markets • Measure and value social impact... ERR • Form a development service company to aggregate development plans • Aggregation of assets, income streams and risks • Migrate £50bn of bank finance towards bond market (currently £7.5bn) • Co-op housing – borrow against unfettered assets • Regulator to consider treatment of grants (as assets)