Global Connectedness Index 2012: Confirming Globaloney

By The Editors

The conclusion of the DHL Global Connectedness Index 2012 — the world today is less globally connected than it was in 2007 — does not come as a surprise.

Pankaj Ghemawat (author of World 3.0: Global Prosperity and How to Achieve It, winner of the Thinkers 50 Book Award for the best business book published in 2010-2011) has repeatedly shown, with brilliance and with hard data, that the world is far less connected than it appears to be.

According to Pankaj Ghemawat, the real world is roughly only 10 to 25 percent globalized. Most activities that could take place either across or within national borders are still domestic. In addition, the trend is toward further localization.

In a captivating TEDGlobal talk, Ghemawat states:  “Clearly, apocalyptically minded authors have overstated the case for globalization.  This is globaloney.”

The DHL Global Connectedness Index Ten Key Take-Aways are:

1) The world today is less globally connected than it was in 2007.

2) Capital markets are fragmenting and services trade is stagnant.

3) Global connectedness is also weaker than is commonly perceived.

4) Distance and borders still matter – even online.

5) Europe is the world’s most globally connected region: a reminder of what EU integration has managed to achieve – and what its fragmentation might put at risk.

6) Sub-Saharan African countries averaged the largest connectedness increases.

7) Potential gains from boosting global connectedness can reach trillions of dollars.

8) Every country has untapped possibilities to benefit from more connectedness.

9) Countries’ domestic and international policies can help them connect more.

10) The world’s shifting economic center of gravity reshapes industry connectedness.