The Business Year

Celso Malimpensa

ECUADOR - Economy

On Trend

Geographic Leader, PwC

Bio

Born in in Marilia, Celso joined the firm in 1985 as assistant, at the office of Sao Paulo, being promoted to manager in 1989, and was admitted as partner in 1996, working for the Assurance division. In 1986 he was transferred to the Comprehensive Professional Services (CPS) department, which was structuring its activities in Brazil, focused on SMEs and family-controlled companies. He supported several projects related to consulting services, such as the implementation of cost management systems, organizational climate survey, and profitability analysis, among others. He has been devoted to the development of Private Company Services (PCS) practices in Brazil. Currently, he is the country geographic leader of PwC Ecuador. He is a member of the Regional Accounting Council of Sao Paulo (CRC).

TBY talks to Celso Malimpensa, Geographic Leader, PwC, on the five major global megatrends affecting business, and the specific challenges and potential benefits these present to Ecuador.

What global megatrends has PwC identified and what are their implications?

The first of the five global megatrends is demographic and social change. By 2015, we will have added another billion people to reach about 8 billion, with the over-65s the fastest-growing group. But there will be sharp regional variations: Africa’s population is projected to double by 2050, while Europe’s is expected to shrink. These demographic changes bring risks for businesses that fail to respond adequately.

The second megatrend is the shift in global economic power. On current trends, the aggregated purchasing power of the “E7″ emerging economies—Brazil, China, India, Indonesia, Mexico, Russia, and Turkey—will overtake that of the G7 by 2030. The global emerging middle class will represent an annual market of some $6 trillion by 2021. Businesses have to address the needs of ever more diverse—and more demanding—customer segments. The ongoing rebalancing of global economic power also brings major implications for investments in infrastructure. Worldwide, we estimate that annual spending on infrastructure will grow from $4 trillion in 2012 to more than $9 trillion by 2025—with a total of close to $78 trillion expected to be spent globally between 2014 and 2025.

The third megatrend is rapid urbanization. Every week, some 1.5 million people join the urban population, through a combination of migration and childbirth. Rapid urbanization brings major implications for businesses as they refocus their offerings, marketing, and distribution towards and increasingly urban customer base with distinct needs and consumption habits.

The fourth megatrend is climate change and resource scarcity. As the world becomes more populous, urbanized, and prosperous, demand for energy, food, and water will rise. But our planet’s natural resources to satisfy this demand are finite. Business must take the lead in mitigating environmental damage and tackling climate and resource challenges, while simultaneously striving to make their organizations more agile and resilient. Corporate responsibility has evolved from a “luxury” to a business imperative. Ultimately, sustainability is the lens through which every business will be judged by its consumers, workforce, society and even investors.

The last megatrend is technological breakthroughs. In our latest Global CEO Survey, business leaders told us technology is one of the biggest disrupting forces in their organizations. One aspect is that the time it takes to go from breakthrough technology to mass-market application is collapsing. The price of new technologies is falling equally rapidly. At the same time, digitization via the internet has created extraordinary value, as exemplified by Google. And social media is steadily strengthening its position as a dominant force in the day-to-day lives of people across the globe, enabling many of the world’s top brands to capitalize on it to deepen their relationship with customers.

How do these translate into Ecuador’s economic environment?

Countries like Ecuador, very well positioned in terms of agribusiness and other natural resources, could take advantage from this, being an important food supplier for the world, as the population will be added another 1 billion by 2025. On the other hand, rapid urbanization, climate change, and resource scarcity are important challenges not only for Ecuador, which will require infrastructure investments and doing business in a mega sustainable fashion. Ecuador is a beautiful country with a variety of natural

What opportunities will these megatrends bring to enterprises?

We are finding that our clients are targeting two core sources of growth: the consumption power of growing population segments and the innovative potential of a diverse workforce; another opportunity is global mobility as the number of people being assigned by their employers to roles beyond their home country has increased by 25% over the past decade and we project a further 50% rise by 2020. Emerging markets will challenge developed economies in the production of high-end consumer durables; today’s “F7″ frontier markets—Bangladesh, Colombia, Morocco, Nigeria, Peru, Philippines, and Vietnam, will become tomorrow’s growth markets.

ADVERTISEMENT

ADVERTISEMENT

You may also be interested in...

Fernando Correa

ECUADOR - Real Estate & Construction

Fernando Correa

Interview

Fernando Correa CEO SEMAICA, SEMAICA

Joseph Schwarzkopf

ECUADOR - Real Estate & Construction

Joseph Schwarzkopf

Interview

General Manager, Uribe & Schwarzkopf (US)

Dario Herrera

ECUADOR - Real Estate & Construction

Dario Herrera

Interview

Minister, Ministry of Housing and Urban Development

View All interviews