National efforts to expand international flows — of trade, capital, information, and people — can be a major leverage point for raising prosperity.
(An excerpt from an article in Strategy+Business by Pankai Ghemawat & Steven A. Altman).
Not that long ago, the world was supposed to be flat. Hardly a day passed without references to globalization and “borderless markets.” This led many policymakers and business leaders to jump on the bandwagon of open globalization, treating all interconnection among countries as equally beneficial.
But this perception that “the world is flat” was so exaggerated that it is fair to call it “globaloney.” The last few years — of financial crises, weak growth, and mounting protectionist pressures — have demonstrated that the world is far less connected than it appeared to be. The real world is roughly only 10 to 25 percent globalized. Most of the activities that could take place either across or within national borders are still domestic and the international flows that exist vary widely among countries, industries, and types of business interactions.
Now the trend is toward localization. The same policymakers and business leaders who once sought universal openness are focusing their investment, attention, and effort within their own home countries. Few of them, however, have actually measured the level of globalization that exists in their country; fewer still have quantified the untapped potential for growth in their countries. If they had, they would recognize that they need increased global connection, even more than before — but in a smarter, more conscious and more considered form.
Capitalizing on Connectedness
1. Picture the world to reveal potential gains.
2. Understand what’s unique about your country’s situation.
3. Increase depth through domestic and international policies.
4. Analyze breadth to find untapped markets.
5. Remember the importance of distance.
6. Don’t forget internal connectedness.
7. Seek to have strong flows in both directions: inward and outward
8. Recognize the importance of imports.
9. Recognize the long-term shift in world demand.
10. Resist protectionism.
As the U.S. journalist Walter Lippmann wrote in 1922, “The world that we have to deal with politically is out of reach, out of sight, out of mind. It has to be explored, reported, and imagined. Man is no Aristotelian god contemplating all existence at one glance.” The opportunities for gains from more global connectedness are not obvious. Most of us need to adjust our world view to see the headroom for gains, and we need to reach out first to form new connections before specific opportunities come into view. We still have room to benefit enormously from further expansion of the circles of human cooperation, especially when it is done in a deliberate way, capturing tangible gains while avoiding potential pitfalls
Full article :
- Yves Behar: Connectedness is what design does best [GigaOM] (gigaom.com)
- How Agencies Like iCrossing Are Evolving for the CMO (greatfinds.icrossing.com)
- Globalization and the world of contracts (contract-matters.com)