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The pace of globalization is increasing. And that is good for all of us. Today, we are more inter-connected than at any other date in history. More people communicate, collaborate and compete with each other than ever before.

Globalization is the driving force behind the progress of the human race. Globalization brings peace and prosperity. Globalization is spreading smart ideas at the speed of light and pushing innovations forward. Due to globalization, authoritarian regimes around the world feel pressure to abide by the rules of the international community. The most pressing issues of our time, i.e. overpopulation, resource scarcity (water, food, oil) and climate change, demand a global solution. No country in the world is powerful enough to solve any of these problems on its own. A lack of cooperation between nations in different parts of the world makes measures implemented by one country useless. A great example that demonstrates how prone to failure one-sided attempts are is the climate policy of the European Union. By forcing up prices for emitting carbon dioxide in Europe, the EU might achieve a reduction in European CO2 emissions by lowering demand for fossil fuels, but this has zero effect on global CO2 emissions. Lower demand for oil in Europe for instance achieved through artificially high prices in the EU, is decreasing the pace at which international oil prices would increase otherwise, therefore allowing the rest of the world to consume more (and emit more CO2 emissions) at a lower price. The bottom line is that European efforts to reduce carbon emissions only reduce the pressure on emerging economies to become more efficient and consume less oil. This is what German economist Hans-Werner Sinn calls the “Green Paradox”. (For more on the Green Paradox: http://en.wikipedia.org/wiki/Green_paradox )

To get an idea of the incredible speed of globalization, I recommend you to watch the video “Did You Know?” by Karl Fisch, a teacher at Arapahoe High School in Centennial, Colorado. His videos track the progression in both, information technology and globalization.

Being aware of the mind-boggling magnitude of globalization, it is hard to overstate the effects it will have on us in the future. Economic integration will progress as the global market becomes freer and world trade fairer than in the decades before. Populist protectionist measures will be short-lived and harm the long- and medium-term competitiveness of the very countries that give them a try.

We can expect changes that exceed the capacity of our imagination.

In the coming days, I will publish several posts about globalization and what it means to us. Amongst others, I will examine the role of China in the global economy in the past, today and in the future.

Check http://www.whatmattersweblog.com/category/globalization/  regularly to stay up-to-date.

Without a doubt, globalization is a huge challenge. The rise of nations such as China and India is challenging the way we had been doing business for centuries. It is challenging the way we use resources as well as our understanding of what we are entitled for. Globalization forces us to change our habits. But at the same time, globalization is as much of an opportunity for us as it is for the Chinese. Increasingly, individuals can’t anymore rely on their governments to shield them off from outside influences. But at the same time, more and more individuals do no longer accept their governments isolating them and limiting their freedom.

We’re entering a new era in the history of mankind - and it will be an exciting one! Probably the most exciting era ever…

This entry was posted on Thursday, November 26th, 2009 at 1:32 PM and is filed under Globalization. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.