The rapidly growing flows of international trade and finance that characterized the 20th century have flattened or declined since 2008. Yet globalization is not moving into reverse. Instead soaring cross-border digital flows are transmitting a valuable stream of ideas and innovation around the world. Digitization changes the economics of doing business across borders as large-scale Internet platforms reduce transaction costs and create markets with truly global scale. They provide businesses with enormous built-in customer bases and effective ways to connect with them, and they enable millions of small businesses around the world to participate directly in global flows.
A new McKinsey Global Institute report, to be released at New America, finds that globalization has reached a critical turning point. This research measures how all types of global flows influence GDP and productivity growth—and for the first time, it quantifies the value of data flows.
While the digital world may be more inclusive and closely connected, it is not truly flat—and digitization tends to accentuate disparities. This echoes the findings of MGI’s recent Digital America report, which found enormous gaps between the digital “haves” and “have-mores.” As globalization turns into a more digital phenomenon, the United States can build on a significant comparative advantage if it can deepen capabilities across the economy.
The convergence of globalization and digitization means that policy makers and business leaders alike have to re-assess their strategies. Given that we are only in the very early stages of this phenomenon, enormous opportunities are still at stake. This event will bring together industry experts, economists, business leaders, and policy makers to discuss a profound change in the world’s economic ties and whether the United States can navigate the challenges posed by this more digital version of globalization.
Head, Global Public Policy, Paypal Robert Atkinson Founder and President, Information Technology and Innovation Foundation (ITIF)
Vice President and Senior, Counsel, GE Global Government Affairs and Policy, General Electric
Co-Founder and Executive Vice President, Hunch Analytics
Director of Digital Economy, U.S. Department of Commerce and Senior Advisor to the Secretary of Commerce
Special Assistant to the President for Economic and Technology Policy, The White House
Co-Founder and Co-CEO, 1776
Manager of Global Policy Development, Facebook
Director, Ranking Digital Rights, New America
Partner, McKinsey Global Institute
Director, McKinsey Global Institute; Director (Senior Partner), McKinsey & Company; Vice Chair, President's Global Development Council
Senior Fellow, McKinsey Global Institute
President, CEO, New America
Head of Global Trade Policy, Google
Assisting Managing Editor, Time Magazine