For many of us, autumn is not only marked by kids heading back to school and the transition of weather, but also for a different kind of season: conference season. During my own travels over these past few weeks, I’ve heard a common phrase crop up again and again in conference ballrooms and hallway networking conversations. This is the idea of “the missing middle.” Maybe you’ve heard it too.
The missing middle has been used in a broad context, from housing policy to labor markets. At a high level, I hear it used to describe the global population of people who aren’t the high-income earners, or the folks living at or below the global poverty line. It’s the 3 billion people who fall somewhere in the middle: with jobs, some discretionary income, and opportunity for upward mobility.
Who are the missing middle?
The missing middle is often perceived as a small slice of the population existing between these two larger groups. In actuality, that couldn’t be further from the truth. The missing middle is roughly a majority of the global population. At Tala, we call this group the global majority, and we’ve been serving them for over a decade.
These are communities largely living in emerging markets on roughly $10 to $20 a day, according to the Pew Research Center. They have jobs, side hustles, and contribute immensely to local economies, yet may also struggle with saving for retirement or coming up with funds for an emergency. These challenges are exacerbated by a financial system that wasn’t designed to meet their unique needs.
But we also know that Tala is just one player when it comes to organizations, companies, and governments serving the global majority. It’s part of the reason why we decided to support a global research agenda in partnership with the Atlantic Council, looking into the global majority—with a full research report anticipated in early 2025.
The impact on global challenges
We rarely hear this population talked about with the full recognition they can play in shaping the global stage. Estimates indicate that unlocking the economic power of the global majority could result in a $10 trillion boost to the global economy. And beyond that, addressing the barriers holding this population back from realizing this potential could have ripple effects on some of the biggest global challenges.
Consider migration. We know that economic opportunity is a driver of migration, with one of the key migration corridors being from emerging market economies to larger economies. If we can open the door to more jobs at home for people in the global majority, we can boost local economies and limit migration abroad for economic reasons.
Or consider global health. Roughly 3 billion people lack financial resources for a healthy diet. What we eat is one of the foundations of our health. When communities in the global majority have more affordable access to nutritious food, we cultivate a crucial cornerstone of healthy, thriving communities.
Or, perhaps most top of mind for many, is the climate crisis. According to the International Monetary Fund, lower-income countries will be particularly at risk from climate change impact, with many communities already bearing the brunt of climate-related disasters. All the more reason to invest in green technology and renewable energy, and create more job opportunities in the process, for communities in the global majority.
The opportunity for the global majority
The global majority is the unifying factor in addressing these intersectional challenges facing our world today. At Tala, we see a clear need to look at this population more holistically, to recognize the immense potential we can unlock if we do.
Now when I hear the missing middle at conference venues, I can’t help but think about the opportunity that lies ahead if we give the global majority the time and attention it deserves. I’m excited for what’s to come in the Atlantic Council’s research, but more importantly, how the key players in this space will act with this new insight.
Shivani Siroya is founder and CEO of Tala.