Diane Wang: Digital Platforms; Anti-globalization has already lost

Blogs are the author’s own opinion and not necessarily representative of Misys or the World Trade Board.

 

The world is currently in great state of worry regarding current anti-globalization and pro-protectionism sentiments that are taking place across different continents, as it should be. According to the 2017 B20 statement:

“Trade promotes prosperity worldwide. Between 1990 and 2014, world trade increased about five fold and global per capita income grew by nearly 250 percent. This had a very real and positive effect on people’s lives: half a billion people have been moved from poverty and seen their living standards and incomes improve. This has been particularly evident in regions that have proactively integrated into the world economy such as East and Southeast Asia.”

RECORD HIGH GLOBAL TRADE UNCERTAINY: According to the World Bank, global trade policy uncertainty is at a record high, and has been aggravated by the U.S. Presidential Election and Brexit.

The outcomes of both of these events were triggered by nationalist and protectionist sentiments.

INCLUSIVE GROWTH: I have been asked many times why I think organizations such as the World Trade Symposium exist. The answer is simple; to promote cooperation and collaboration between nations, to work together to benefit the global economy and therefore all of humankind.

MSMEs (micro-small-and-medium sized enterprises) are the foundation of the global economy, and have gained the most from globalization. Digitization has been the key to integrating MSMEs into the global value chain and realizing inclusive trade, specifically due to the rise of digital platforms.

GLOBAL TRADE’S FUTURE: Digital marketplace platforms that connect buyers and sellers have distinguished themselves as the future of global trade and commerce.

Digital marketplaces have changed the dynamics of international cooperation, collaboration, and transactions, in addition to lowering expenses. They create and define new sections of the global market, power digital supply chains, and complete all procedures involved in international transactions.

REDEFINING INTERNATIONAL COOPERATION: These mechanisms give businesses the ability to instantly connect with potential customers across the globe, decreasing the impact that borders have on the ability of entrepreneurs and small business to engage in the global marketplace.

According to McKinsey:

  • Approximately 12 percent of the global goods trade is conducted via international e-commerce
  • By 2025 online talent marketplaces could add $2.7 trillion to global GDP
  • Persistent problems in the world’s labor markets will begin to be eliminated, potentially benefiting up to 540 million people

A BEAUTIFUL NEW WORLD: I cannot help but smile as I thought of the beautiful world developing around us. A world where people from all countries, all walks of life, all genders, finally have equal opportunities and resources to benefit from the global economy through digitalization.

I don’t just have faith, but I am certain, because the numbers don’t lie. Digital platforms have already succeeded in connecting the entire world, making complete digital globalization a guarantee that protectionists and nationalists will soon be forced to accept.