JUNE 2013

Mark Florman

The World

The World in 1991

46%

The World in 2013

GINI index

Source: World Bank

22%

Shifting Demographics

Old vs. Young

Old - Indebted35% of WG

Young – No Debt65% 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

2012

13%

70%

18%

7 BILLION

2050

9.3 BILLION

67%

18%15%

More Developed CountriesLess Developed Countries

Least Developed Countries

Source: United Nations Population Fund

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 World

Surpluses

STEM

Young

Europe

Unprecedented growth in productivity required from investing in

Physical Capital

Knowledge Capital

Human Capital

New Flat World

Connected & communicating

Constant fight over resources

Working old & poorInstability & angerOnline educationSustainable energy

Springboard Economy

Schools: STEM & business

Angel & VentureInnovation

ecosystemsProductivityApprenticeships

Springboard Society

No one left behindBusiness

responsibilitySocial impact

industryBack to workOne million jobsSlavery (CSJ)

UK Statistics

2013

45%

39%

16%

53 MILLION

2060

63 MILLION

34%

36%30%

Public Sector net debt as a % of GDP

Source: HM Treasury

66+ years old36-65 years old

0-35 years old

Source: Office of National Statistics

Current State of the UK

Living beyond our means

OvertaxedMortgaged the futureInward FacingShort termistLack of innovationNeed 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.

UK Housing

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)

Thank you