The effects of technology on the global economic structure are triggering immense change in the way organizations and nations go about their business. It has become more and more of an essential component in everything from how they research and develop new products and processes, organize production, trade goods, and invest capital.
Trade has long been a defining characteristic of globalization. Only recently have international rules governing trade become an area of concern and negotiation. Global trade has great potential to increase economic growth to the countries involved and it has the potential to provide trickle-down income growth and health benefits to the populations within those countries. Of course, all countries might not benefit equitably, and within each country, benefits may be enjoyed more by some population segments at the expense of others.
At the World Economic Forum’s Davos 2019, the conversation about how globalization affects and touches each country, region and sector were top of mind given recent political events and pronouncements by several world political leaders. Globalization permits both developed and developing countries to harness technology more efficiently, with the expectation of creating higher standards of living for all involved.
To be clear, even as the movement of goods and products may slow, the movement of people, information, data, and ideas around the world is increasing exponentially and is likely to continue to do so for the foreseeable future.
In the private sector, it’s especially interesting to see how technological developments begin to seize opportunities as they gain the ability to cross borders like never before, magnifying their effects on the world stage. To an unprecedented extent, tech developments in every sector can bring more solutions and benefits to those in need, open new markets, and provide new growth opportunities where there weren’t any before.
From health care to agriculture, technology can help deploy opportunities and help raise standards of living for even those living in the most remote areas of the world. Digital banks have been able to blur the historically rigid lines of traditional borders and provide expats and unbanked populations access to the power of their capital. Mobile networks are moving to 5G which will impact the infrastructure globally for the next 40 years. The ability to earn, save and trade capital for goods and services will continue to mobilize previously limited populations within inaccessible communities and workforces.