Our political and economic leaders are learning that connectivity is not charity , it is opportunity . And that ’ s why our financial community needs to understand that connectivity is the most important asset class of the 21st century .
24 | THE WORLD DEMANDS A NEW MAP
The conventional systems that have long shaped life on Earth are floundering , rendered unfit for purpose in a world that is transforming and advancing like never before . For centuries , “ geography is destiny ” has been the fatalistic mantra , condemning landlocked countries to eternal poverty , teaching small countries they are destined to lose out to larger neighbors and viewing distance as an insurmountable barrier to trade , cooperation and progress . But all of that is changing ; there is now a greater force than geography shaping our planet : connectivity . It is a force to be reckoned with , and one that the businesses must embrace if they are to keep up with the pace of change and succeed in tomorrow ’ s world .
Whether through digital advancements , new trade routes , or bricks-and-mortar infrastructure , connectivity is propelling the mobility of people , goods and information to unprecedented heights , paying little regard to sovereign borders as it goes , and drawing once isolated corners of the world into the global economy . In the midst of such sweeping change , the time has come to re-think how life on our planet is organized . And as the world re-organizes , businesses , too , must reconsider where and how they fit in . Here are eight points that corporate leaders should factor into their thinking as they strategize for life in a connected world .
1 . Connectography
Where connectivity and geography collide , an evolution is taking place : emphasis is shifting from how we legally divide the world , to how we use it . Here , economic size is more important to business than national borders .
That connectivity is a greater force than geography may appear a bold statement , but the evidence is all around us . The surface of our planet is home to 64 million kilometers of roads , four million kilometers of railways , two million kilometers of pipelines and one million kilometers of Internet cables . By contrast , we have less than 500,000 kilometers of borders . With the numbers painting a stark picture , it is clear that Planet Earth demands a different map .
The reality is , connectivity , not sovereignty , has become the organizing principle of the human race . Our global system has progressed from the integrated empires of the 19th century , through the horizontally interdependent nations of the 20th century and into the 21st century ’ s global network civilization , where the most connected places also boast the greatest economic strength . Imagine if our global diplomatic institutions , such as the G20 , were to base their membership on economic size rather than national representation . Some Chinese megacities may have a seat at the table , while entire countries , like Argentina or Indonesia would be out .
Yet , as connectivity alters the global balance of economic power , it does not replace geography . Instead , the two are inextricably linked , resulting in a concept that I call “ connectography ,” an evolution from political geography , which is how we legally divide the world , to functional geography , which is the way we use it .
It is this use of geography , rather than the borders dividing it , that business leaders should focus on . In the pursuit of new opportunities , while companies still have to contend with national bureaucracies and regulations , their search parameters should not be limited by sovereign boundaries . Rather , companies should strive to transcend borders rather than transact across them , and target locations with the highest connectivity .
Our political and economic leaders are learning that connectivity is not charity , it is opportunity . And that ’ s why our financial community needs to understand that connectivity is the most important asset class of the 21st century .
EMERGING MARKETS BUSINESS FIRST QUARTER 2017 ISSUE NO . 2