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The Unfinished Business of Globalisation The business I run is global, because many of our students come from overseas. Many of my colleagues are also born abroad. Indeed, I watched the business of professional training and higher education for last three decades, and it is very apparent that this industry, and many other sectors along with it, has become intensely global. In fact, since the 1990s, Globalisation has become a keyword of sorts. t is also universally accepted that globalication is an irreversible process, a sort of juggernaut, which will steamroll everything on its way. Economists, Journalists, Politicians everyone have signed up to this common minimum faith, and every policy, business and ideas have to be global to be considered seriously. So, as we are unquestionably in the age of a Flat World, as Tom Friedman theorised, the only debate worth having is whether globalisation is something new. Marco Polo, the Chinese and Indian merchants of ancient times, the Arab traders carrying goods and knowledge across Asia, Christopher Colombus, all can claim to be precursors to globalisation in one way or the other. This, if anything, establishes the vintage of globalisation, though what we have now, its defendants claim, is faster, smarter and better globalisation. There are indeed disagreements, even street fights, on whether this is a good or a bad thing. The battles are fought between the 'World is Flat' people, who believed that the global corporations are making national boundaries irrelevant, and the 'Shock Doctrine' people, who believe in exactly the same thing, but think that's necessarily bad. The believers of good globalisation assemble in Davos every year to hail good globalisation, whereas the faithful of bad globalisation arrange their own annual global summit in Rio. So, in this setting, coming to realize that the world is less global than one thinks, and the global prosperity remains stunted as the world is deeply divided, is somewhat counter-intuitive. But this is exactly what Pankaj Ghemawat, Professor of Global Strategy in

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Asian Voice & Gujarat Samachar - 2011

Dr. Dak Patel FCCA FOTHM Principal

IESE Business School in Barcelona, argues in his new book, eerily named World 3.0. He essentially says we haven't seen true globalisation yet, and claims that the world is actually in a reverse gear as far as globalisation is concerned. Some of the statistics he uses to make his case are persuasive (I have drawn upon the review of his book by The Economist recently): 1. Only 3% of the people live outside their country of birth 2. Only 2% of the students are at universities outside their home countries 3. Only 7% of the Rice traded across borders 4. Only 7% of the directors in S&P 500 companies are foreign born 5. Less than 1% of all American companies have foreign operations 6. Exports are equivalent to only 20% of global GDP 7. Air Travel is still restricted by bilateral treaties 8. Ocean shipping is dominated by global cartels 9. Foreign Direct Investment accounts for only 9% of fixed investments 10. Less than 20% of venture capital is deployed out side the fund's home country 11. Less than 20% of shares traded in the major stock markets are owned by foreign investors 12. Less than 20% of Internet traffic crosses national borders What we are seeing is not the death of distance, he argues, but a reassertion of the love of the familiar and the local. By this standard, David Cameron's recent concern that local communities are falling apart with people arriving with strange dialects is not out of place. Professor Ghemawat cites more data: Two otherwise identical countries will engage in 42% more trade if they share a com-

FBI 25th May 2011  

Finance Banking Insurance (FBI)

FBI 25th May 2011  

Finance Banking Insurance (FBI)