The Era of Digitalization and Globalization

Digital globalization is a new form of globalization. It brings about relevant changes regarding how business is conducted across borders, the flow of economic benefits, and broadening participation. The growth of data and information related to digital globalization determines that global economic, financial, and social connections increase through digital platforms. Covid-19 is causing a shock to the global economy that is proving to be both faster and more severe than the 2008 global financial crisis. If the current crisis is pushing towards deglobalization, at the same time, Covid-19 represents a challenge for digital globalization and the digital transformation of economies.

Digital globalization, defined largely by flows of data and information, is a new form of globalization. It brings about relevant changes regarding how business is done across borders, the flow of economic benefits, and broadening participation.

Presently, the adverse effects of Covid-19 are severely affecting the global economy resulting in a retreat from freewheeling global supply chains. At the same time, the flow of data and information has been increasing. Digital flows are transmitting information, ideas, and innovations throughout the world, broadening participation in the global economy, and strengthening the digital globalization process. These data flows ensure that global economic, financial, and social connections in the digital era continue to grow and widen.

Thus, the phenomenon of global digitalization is gaining momentum, so that governments, large multinational corporations, and major financial institutions are not the only central characters, but also artisans, entrepreneurs, app developers, freelancers, small businesses, and even individuals can participate directly on digital platforms with global reach.

Therefore, the on-going digital transformation of the economies characterized by new technologies, and pressed by the Covid-19 emergency, requires inclusive, coherent, and well-coordinated policies, reflecting a multi-stakeholder and whole-of-government approach to policy making that pro-actively consider those who will benefit from the digital transformation and those who risk being left behind.

This crisis triggers a series of economic, technological, and psychological responses that must meet economic difficulties, communication problems, the digital divide, and a sense of distress among citizens. For this reason, the sense of belonging to a global, supportive, and interconnected, community can help overcome the difficulties of this profound crisis. Digital transformation and digital globalization could become an opportunity to improve the economic, human, and psychological condition of citizens around the world.

Credit: Toward Digital Globalization and the Covid-19 Challenge (Daniele Schiliro)