We live in uncertain times. A sluggish global economy, geopolitical volatility, the migration crisis and acts of terror have raised serious concerns about the current state of world. It seems that in the absence of a compelling vision for the future of humanity, negative forces such as nationalism and protectionism have taken root. These worrisome trends suggest the world is in a downward spiral, and that countries and regions are drifting apart. A common perception is that the world has entered a phase of de-globalization. But does this perception match reality?
The new DHL Global Connectedness Index (GCI) 2016 provides hard data about the current state of globalization. The 2016 report indicates that globalization is, in fact, not dead. Measured by flows of trade, capital, information and people, the world’s overall level of global connectedness actually surpassed its 2007 pre-crisis peak during 2014. Although globalization is not advancing as rapidly as it was before the financial crisis, the GCI suggests it has not gone into reverse.
This is good news, because globalization has served as the world’s engine of progress over the past half century. Life today is better for most people thanks to the depth and breadth of cross-border interactions. Whether measured by GDP, life expectancy, poverty levels or other significant metrics, global living standards have vastly improved. And the GCI confirms there is still enormous potential for increased connectedness between the world’s nations and regions.
Globalization is simply part of the fabric of our organization
At Deutsche Post DHL Group, we observe another key trend: The digital revolution will drive even greater global connectedness. Let’s take global e-commerce as an example. The global B2C cross-border e-commerce market is estimated to reach US$ 1 trillion by 2020, with a compound annual growth rate of 27% over the next four years. More than 900 million people around the world will be international online shoppers by 2020, enjoying a greater variety of products and more convenient delivery options.
Our global team of 500,000 employees is proud of the role it plays in enabling e-commerce and global supply chain solutions. By connecting merchants and consumers across virtually all geographies, we improve lives. Globalization is simply part of the fabric of our organization, and we are passionate advocates for the progress it has achieved and for the potential it still holds.
I encourage you to consider the timely analysis provided in the 2016 edition of the DHL Global Connectedness Index, which includes exciting new insights on the globalization of cities. Perhaps you will even join me in my belief that despite the world’s current challenges, there is a better tomorrow in store for future generations.