Report Reveals Who Profits Most From Growing Globalization

MOSCOW (Sputnik) - Globalization generates welfare gains for states that are engaged in international trade and facilitates more growth for highly-industrialized states than for emerging economies, a Globalization Report showed on Friday.
Sputnik

"The report shows: globalization can clearly create welfare gains. Protectionism is not the right way forward. However, globalization must be shaped in such a way so the focus is on the people. This is the only way we can live up to our promise of success," Aart De Geus, the CEO of the Bertelsmann Stiftung foundation that commissioned the Globalization Report 2018, said, as cited in a press release accompanying the report.

Industrialized countries like Switzerland, Japan, Finland and Germany benefited most from increased globalization, while emerging markets such as China, India and Brazil occupied places at the bottom of the ranking, according to the report.

"The Swiss benefit the most: in Switzerland, the GDP per capita resulting from increasing globalization grew on average by 1,910 euros per year between 1990 and 2016. In India, the last ranked with respect to globalization-related welfare gains, this figure rose by an average of only 20 euros per year. China (80 euros per year) also recorded below-average gains," the press release said.

READ MORE: China Better Economic Choice Than US for EU

Outdated Financial Model: Why Russia Refuses to Give Money to the World Bank
One of the reasons is the fact that they joined the global market later than many industrialized economies and are still practicing state-imposed trade barriers and restrictions.

The report analyzed the benefits of globalization on the basis of real gross domestic product per capita across 42 developed and emerging economies for the period between 1990 and 2016. Experts calculated the so-called globalization index for each country, with the highest possible value being 100. The higher the index value of each country in the study was, the greater the country’s interdependence with other states.

READ MORE: Trump's Decision Will Scuttle Global Peace, Denuclearization — Indian Analyst

Discuss