Globalization Will Speed Our Recovery

As we approach the end of an extraordinary year, 2020 will no doubt be remembered as a defining moment for societies and our world as a whole. Amid the most severe pandemic in a lifetime and one of the worst economic shocks in decades, economies around the world are struggling to recover from deep recessions, with businesses and people anxious to get back to work, and to regain normality.

Even in this critical public health and economic situation, though, many areas have been able to maintain a remarkable degree of continuity. Global supply chains continue to ensure that products are made and delivered to supermarket shelves and homes, with state-of-the-art logistics networks working as fast and reliably as ever. And digital tools and media have enabled many of us to continue to learn, work and stay in touch even at a distance.

Unexpected resilience

We owe much of this continuity to the power of global connectedness. In a time of lockdowns and disruptions, a robust global web of digital and physical linkages has kept the world running. These technological connections and trade ties have made it possible for us to maintain much more continuity than would have been possible in the past.

Indeed, in contrast to speculation that this pandemic could mark ‘the end of globalization,’ the new DHL Global Connectedness Index 2020 reveals a world where people, companies and countries continue to connect and do business with each other. As the latest edition of our report on the state of globalization shows, trade is rebounding rapidly, capital flows are recovering, and digital information flows are surging.

The real story told by the data is clearly not one of deglobalization. Most international flows proved more resilient in 2020 than many thought possible. And, in spite of ever-present geopolitical tensions, our report – which we publish annually in partnership with New York University’s Stern School of Business – detects no strong evidence of the world economy fracturing along regional lines. That is encouraging news, because more globally interconnected economies tend to enjoy higher rates of growth and should therefore recover more quickly from this pandemic.

Connecting people, improving lives

I am convinced that as we work through this crisis, we will be able to maintain the benefits of our connected world – and, indeed, expand them by connecting further because the world is, in fact, less connected than many people believe. According to the report, only a limited share of global flows actually crosses borders, with most taking place within rather than between major world regions. For example, just about 20% of global economic output is exported.

In other words, there still is a lot of room for expanding global integration and the benefits associated with it. We at Deutsche Post DHL Group are proud to be an important driver of an ever more connected world. We sincerely believe that connecting people improves lives. In fact, that is our purpose as the world’s leading logistics provider. It’s what motivates us – and it has never been more important than it is today.

By supplying stores and bringing goods directly to homes, we make sure that people can access the things they need. We deliver medicines and medical equipment – to hospitals, pharmacies and doctor’s offices. For many, we’re a bridge to the rest of the world.

We’re helping to get everyone through this crisis, and to restart our economies. Thanks to our supply chains, companies can resume production. In normal times, the logistics behind the scenes tend to go unnoticed. It takes a situation like this for people to truly appreciate how critical logistics is. Never before have our services been so urgently needed.

Part of the solution

This year’s pandemic has clearly shown that globalization is not the problem, but the solution. It helps us mitigate the economic impact of the crisis. Stable supply chains and access to the global market enable businesses to continue to operate and supply people with everyday essentials. Without global exchange, the impact of this pandemic would have been considerably more severe.

I feel strongly that global connectedness has made our world more secure and less vulnerable in the current crisis – and that a more connected planet offers the best prospects for a healthy and prosperous tomorrow. That is what inspires our commitment to a future in which we trade more, share new ideas with people across the globe and solve problems together as a community.

More information on the DHL Global Connectedness Index 2020