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When companies figure out how to serve low-income consumers in developing countries profitably, everyone wins: the disadvantaged gain access to products and services that the private sector is best positioned to deliver, while companies tap into vast new markets. On top of that, when core sectors of the economy—such as banking, electricity, telecommunications, and water—thrive, they transform consumers into producers and promote economic development. Unfortunately, this happy dynamic is more the exception than the rule. Low-income consumers just can't afford many products and services. A shaky infrastructure raises the costs of distribution.
The new growth frontier: Midsize cities in emerging markets - McKinsey Quarterly - Economic Studies - Productivity & PerformanceSenior executives searching for growth face a stark new reality: roughly 400 midsize cities in emerging markets—cities they mostly will have never heard of—are posed to generate nearly 40 percent of global growth over the next 15 years. That’s more growth than the combined total of all developed economies plus the emerging markets’ megacities (those with populations of more than ten million, such as Mumbai, São Paulo, and Shanghai), which together have been the historic focus of most multinationals. Learning about consumer attitudes in the emerging markets’ “middleweight” cities (three-quarters of which have less than two million people), figuring out market entry strategies for them, and deciding how to allocate resources within and across them will all be crucial priorities in the years ahead. New research from the McKinsey Global Institute (MGI) seeks to arm executives with the knowledge they’ll need to tap into global urban growth.
September 2012— Indonesia's fast-growing economy—propelled by powerful economic trends, including Asia's renaissance, rapid urbanization, and expanding population of young people—could become the world's 7th largest by 2030, up from 16th today. While the country's economic productivity has increased strongly over the past decade, it must rise by a further 60 percent to meet the government's target of 7 percent a year economic growth. more <p style="text-align:right;color:#A8A8A8"></p>