Sept. 18, 2017
A panel on impact investment featuring Tomicah Tillemann was covered in the Diplomatic Courier.
As globalization continues to shape financial markets around the world, the issue of international trade is becoming an increasingly unstable force. In the last 25 years alone, international trade has increased at an astounding rate, with trade in 2007 alone accounting for 60% of total global GDP; yet in more recent years, global trade has begun to see a decrease, with only 55% of the global GDP accounting for trade, and capital flow within the United States decreasing from 16% to a mere 2% in a ten year span. Even in terms of human movement, European immigration rates have seen a decrease in five million people in the last four years, with the flow of people entering the US from Mexico similarly coming in at negative numbers over the past three years.
Interestingly, while the global economic landscape may currently be in a state of flux, the social landscape may be in an even more unstable state. With the dramatic rise of countries such as China, India, Indonesia and Brazil, inequality among nations has declined dramatically over the past 25 years; conversely, inequality within countries simultaneously continues to rise. Ultimately, these increasingly dramatic shifts reveal the need for less focus on growth and trade and more focus on redistribution in terms of both the social and economic global landscape, which raises two important questions: first, are new strategies needed to cure globalization’s current fluctuating status? And how can the private sector aid in this effort?