These days we observe a global trend growing towards looking inward. US, the immigrant country, which has believed in getting immigrants in droves to the country to aid in economic growth, now is shutting its doors to immigrants. India which thrived on globalisation has now a nationalist government that is against opening of the economy to outsiders and is more to natives running the country on capitalist principles.
What are the risks associated with Deglobalisation ?
1. Competition to control the Internet : The Internet is getting divided these days, SPLINTERNET, with China and US trying for independent ways and means to control the global usage of Internet. With Internet protocol and standards matured and accepted across the world, the security protocols are still being debated, the control mechanisms, the over-riding mechanisms and the like. Any country that gets to control the Internet, will in effect control a good portion of humanity.
2. Dearth of talent in developed countries : Because of the inward looking policies of the developed nations, it is becoming difficult with each passing day to attract the best talent to these countries. Countries then resort to selective relaxation for specialised skills and resources to get immigration status for specialists to the developed countries
3. Multi national corporations (MNCs) are more inward looking : MNCs are now comfortable being being local MNCs that global MNCs. This is because every country is concerned about their security and safety and want MNCs and global internet companies to have local servers which are more accessible to their country's judiciary and legal system than be out of it. For example India has asked Google and Facebook to place their India users servers within Indian territory and jurisdiction.
4. Global organisations are finding it difficult to raise funds or financial resources from cheap international financial markets for their development, leading to stalling of developmental projects and limited growth across geographies.
5. Growing tensions across geographies: This is leading inward looking and nationalist leadssearch on defence related projects than looking at the general growth and benefit of humanity.
Can stronger subsidiaries for corporations with stronger local leadership held loosely by the global leadership team lead to better and fast decision making for corporation and organisation in the deglobalised world ? More discussions will ne needed to adress this global issue.
Will deglobalisation take us deeper into our trenches and prevent us from climbing to higher strategic and tactical trenches or prevent us from falling into lower trenches ? Will deglobalisation lead to countries forming alliances and flexing their muscles and military might lead to global tensions and threats to air and maritime trade and transportation ?
Time can tell.
George. (credits to Dambisa Moyo 's HBR article , Dec '19, highlighting the threats of global business on deglobalisation)
What are the risks associated with Deglobalisation ?
1. Competition to control the Internet : The Internet is getting divided these days, SPLINTERNET, with China and US trying for independent ways and means to control the global usage of Internet. With Internet protocol and standards matured and accepted across the world, the security protocols are still being debated, the control mechanisms, the over-riding mechanisms and the like. Any country that gets to control the Internet, will in effect control a good portion of humanity.
2. Dearth of talent in developed countries : Because of the inward looking policies of the developed nations, it is becoming difficult with each passing day to attract the best talent to these countries. Countries then resort to selective relaxation for specialised skills and resources to get immigration status for specialists to the developed countries
3. Multi national corporations (MNCs) are more inward looking : MNCs are now comfortable being being local MNCs that global MNCs. This is because every country is concerned about their security and safety and want MNCs and global internet companies to have local servers which are more accessible to their country's judiciary and legal system than be out of it. For example India has asked Google and Facebook to place their India users servers within Indian territory and jurisdiction.
4. Global organisations are finding it difficult to raise funds or financial resources from cheap international financial markets for their development, leading to stalling of developmental projects and limited growth across geographies.
5. Growing tensions across geographies: This is leading inward looking and nationalist leadssearch on defence related projects than looking at the general growth and benefit of humanity.
Can stronger subsidiaries for corporations with stronger local leadership held loosely by the global leadership team lead to better and fast decision making for corporation and organisation in the deglobalised world ? More discussions will ne needed to adress this global issue.
Will deglobalisation take us deeper into our trenches and prevent us from climbing to higher strategic and tactical trenches or prevent us from falling into lower trenches ? Will deglobalisation lead to countries forming alliances and flexing their muscles and military might lead to global tensions and threats to air and maritime trade and transportation ?
Time can tell.
George. (credits to Dambisa Moyo 's HBR article , Dec '19, highlighting the threats of global business on deglobalisation)
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