Economy

Globalisation is not as widespread as one thinks: Ghemawat

Our Bureau New Delhi | Updated on November 02, 2011 Published on November 01, 2011

Mr Pankaj Ghemawat





Cross-border telephone calls around the world are only about one-tenth of all calls made

About 10-20 per cent of the bits and bytes on the Net actually cross national borders

Typically, people get 90 per cent of their news locally, than from abroad.

Only 10 per cent of global investments are FDI

Mr Pankaj Ghemawat, global strategist, and author of a recent book, ‘ World 3.0, Global Prosperity and How to Achieve It' published by Harvard Business, made these telling points to emphasise that the world is not as globalised as one would like to think it is.

Speaking to the media at AdAsia at an interaction to launch his new book, Mr Ghemawat said, “When we talk about globalisation, the tendency is to overstate how globalised the world actually is.”

Mr Ghemawat said that brand consultancy Millward Brown, in a study of 10,000 brands, found that only 16 per cent found recognition in more than one country and only 3 per cent achieved recognition in seven or more countries. “On the one hand there is this vision of a seamless and integrated world and brands are spreading across it, but the reality is that borders still seem to matter a great deal and this has profound implications for business and public policy.”

On the public policy front, Mr Ghemawat said there are two major implications. If only 10-20 per cent of the world is globalised, one implication is that there is potential for additional integration.

“Second, if you recognise only 10-20 per cent is globalised one can look at some aspect of contemporary life and say globalisation is at work.

“So being reminded about the correct extent of how globalised we are as opposed to having these exaggerations in our mind helps put what a lot of the critics of the anti-globalisation movement say in perspective.”

Speaking on the challenges brands face he said it's most evident in Spain where unemployment is 22 per cent. How does one get people to pay for brands where people are in trouble and also price-sensitive, Mr Ghemawat wondered.

He said the rise of strong retailers and private labels was also a huge challenge for brands. “The challenges here are different from developed countries,” he added.

Published on November 01, 2011

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