DHL releases Global Connectedness Index

DHL has released the fourth edition of its Global Connectedness Index, that is a detailed analysis of the state of globalisation around the world. The DHL report shows that global connectedness, that is measured by cross border flows of trade, capital, information and people has surpassed its 2007 pre-crisis peak during 2014.

In a statement DHL said, “In 2015, globalization’s post-crisis expansion slowed, but the data indicate that it did not go into reverse. Currently available evidence – still preliminary in some areas – suggests that the world was about 8% more connected in 2015 than in 2005.”

The report has shown that the information pillar that is measured by information traffic, telephone call minutes and trade in printed publications, has shown the strongest growth over the reporting period between 2013-15. DHL’s statement added, “The gains in capital and people flows have been more modest, while the decline in the proportion of goods traded across borders – which began in 2012 – accelerated in 2015.”

“Globalization has served as the world’s engine of progress over the past half century,” commented Deutsche Post DHL Group CEO Frank Appel. “The GCI documents that globalization has finally recovered from the financial crisis, but faces an uncertain future. It is imperative that policymakers and business leaders support an environment in which globalization can continue to flourish and improve the lives of citizens around the world.”

The research on the GCI was led by internationally acclaimed globalization expert Pankaj Ghemawat, who highlighted how emerging economies still lag behind on global connectedness. “Advanced economies are about four times as deeply integrated into international capital flows, five times as much on people flows, and nine times with respect to information flows,” Ghemawat commented. The GCI also notes that if emerging economies become more similar to advanced economies in terms of their connectedness levels, this would provide a powerful boost to overall connectedness. 

The 2016 edition also documents a rising proportion of internet traffic crossing national borders, even as international trade and information flows lag their potential. “This underscores the tremendous headroom available for international e-commerce to boost business activity and expand the options available to consumers around the world,” commented Jürgen Gerdes, CEO Post – eCommerce – Parcel, Deutsche Post DHL Group.
 
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