Reflection on the World Economic Forum 2024 Growth Report
Through the lens of consulting and product development
My background is in economics and business, so I gladly dove into the World Economic Forum Future of Growth Report 2024, analyzing how the future of growth described will impact consulting and product development:
The World Economic Forum's Future of Growth Report 2024 provides a comprehensive and multidimensional assessment of the quality of economic growth around the world. By examining growth through the lenses of innovativeness, inclusiveness, sustainability, and resilience, the report highlights the complex trade-offs and synergies countries must navigate as they chart their unique growth pathways in an increasingly volatile and multipolar world.
The report contains a nuanced view of growth as more than just increasing GDP, which has significant implications for the fields of consulting and product development. As the report clarifies, innovative capacity, social inclusion, environmental sustainability, and systemic resilience are not just "nice to haves" - they are becoming indispensable qualities for countries and companies aiming to achieve durable growth and competitive advantage in the 21st-century economy. Consulting firms and product developers that internalize these priorities and help their clients do the same will be well-positioned to thrive.
Regarding innovativeness, the significant disparities between advanced and developing economies underscore the persistence of a global digital divide. Digitalization rates are diverging rather than converging, presenting both challenges and opportunities. While the lack of digital infrastructure remains a bottleneck for developing countries, the availability of digital talent in those markets could help meet unfilled demand in developed economies if trade in services is facilitated.
For consulting firms, assisting both governments and businesses in developing countries to accelerate digital transformation and boost technology absorption will be a significant growth area. Meanwhile, helping companies in advanced economies tap into global talent pools, preferablly internally, and implement work models enabling seamless remote collaboration will provide another avenue to add value. Product developers will need to take a twin-track approach - pushing the envelope on frontier technologies in leading innovation hubs while tailoring solutions to developing markets' contexts to expand access and adoption.
With inequality on the rise and social cohesion eroding in many countries, making growth more inclusive is a burning priority. Beyond closing gaps in access to essential services, the deeper issues of wealth concentration and unequal opportunity, influenced by factors like gender disparities and educational inequality, must be tackled. Consulting firms can play a vital role in advising on policies and practices to boost intergenerational mobility, reskill workers, and prepare social protection systems for future transformations. For their part, product developers should prioritize inclusive design, ensuring the benefits of new technologies are widely distributed.
On the sustainability front, the world still needs to catch up to critical climate targets. Institutional commitments have yet to translate into hardwiring emissions reduction into growth models at scale. Gaps in green finance and lagging deployment of environmental technologies are critical missing links. Consulting firms can assist with developing robust ESG strategies, accessing green finance, and forging public-private partnerships to spur climate innovation. Product development must place sustainability at the heart of the process, focusing on solutions for accelerating the transition to clean energy and a circular economy.
Finally, the COVID-19 pandemic and subsequent shocks have brought resilience to the forefront as an essential characteristic of both public and private sector organizations. While targeted domestic investments are necessary, resilience ultimately requires more international collaboration and strategic coordination, not less. Consultants can help stress-test organizational resilience and develop comprehensive risk management approaches suited to an interdependent world. Product developers should focus on innovations enabling real-time sensing, dynamic adaptation, and efficient resource use within industries and supply chains.
Each country's unique circumstances and policy choices will shape the road ahead for each country. But across all the archetypes depicted, actions to enhance innovation, inclusion, sustainability, and resilience in a balanced way can expand the frontier of what is possible - increasing the rate of growth and its quality and durability in the face of 21st-century challenges. By making these dimensions central to their business models and providing strategic advice to clients, consulting firms and product developers can contribute to a future of growth that is stronger, broader-based, greener, and more resilient than ever. Those who do will find themselves with a potent competitive edge through better relationships and positive brand recognition.