Just 15 years ago, cross-border digital flows were almost non-existent. Today, they exert a larger impact on global economic growth than traditional flows of goods, which developed over centuries.
“Yes, globalization. For many people, that word conjures up, at best, images of container ships moving manufactured goods from far-flung factories. At worst, it harkens back to acrid debates about trade deficits, currency wars and jobs moving to China. In fact, since the Great Recession of 2008, the global flow of goods and services has flattened, and cross-border capital flows have declined sharply. But globalization overall isn’t on the wane. Like so much in our world today, it has reinvented itself by going digital.”