READY FOR MUTUALLY BENEFITIAL GLOBALISATION!

The first twenty-five years of this century have shown great progress and promise an exciting new technology that is redefining globalization and will determine how global leaders respond to cultural changes in the future. Many people say, “We are the most fortunate generation,” especially in an era of super-intelligence and digitalization. There have been different kinds of globalization in history; each was driven by new technologies that grew at different rates. This time, it is driven by digital technology growing at a rapid rate, and the tools are accessible to all.

To keep track of the future of 21st-century globalization, one must first understand its nature and history—particularly before the beginning of the First Industrial Revolution, which few nations leveraged to outperform others and achieve sustained economic growth, while some countries and entire continents were totally left behind in development.

The Voyagers

Four hundred years ago, global commerce was led by European explorers whose voyages facilitated the establishment of maritime empires through the acquisition of colonies and trade in sugar, tobacco, textiles, and minerals.

Although the Dutch held great wealth at the time, England was determined to catch up by expanding its colonies for commercial advantage. England imposed tariffs to prevent other European powers from trading with the British Empire, which led to prolonged naval wars between 1650 and 1674. By the end of the 17th century, global maritime commerce was fully integrated, and economic prosperity was attained by the warring countries.

Industrial Revolution. 

Without long sea voyages and continuous improvements in vessel efficiency, the Industrial Revolution might not have taken off, or perhaps would have been delayed by another century. After the first quarter of the 19th century, the literacy rate in parts of Europe reached an average of 50%, and income per worker was roughly four times higher than the basic living standard. Furthermore, the revenue of certain nations was three times greater than that of most other countries.

Globalization in this era was advanced through the transfer of technology to North America, driving development at an unprecedented speed. Inventions such as steam engines, originally designed for coal mines, were remodeled to power trains and ships as early as the 1850s. While the earlier discovery of electricity enhanced manufacturing efficiency, it was the emergence of entirely new scientific industries in the 1950s that truly interconnected world markets. However, the global income gap widened further during this period as rich nations utilized capital-intensive technologies while poorer nations were left behind.

Leap of Faith.

Think of this economic history as an elevator that holds only six people. One person jumped in at the ground floor; three joined on the third floor; but by the time it reached the middle, two were kicked out. Nonetheless, a few ditched the elevator entirely and scaled the building to the rooftop using ropes.

These ‘rope teams’—including Japan, China, and Russia—leapfrogged from poverty to prosperity. They achieved this by coordinating rapid structural development, enhancing efficiency through technology, promoting education and skilled labor, and maintaining annual GDP growth of at least 6% for over a decade. This performance closed the poverty gap with the ‘elevator countries’ in only 35 years during the 20th century.

What makes today’s globalization different, and why are we the most fortunate generation? In his book Global Economic History, Robert Allen notes that two consistent patterns of the last five hundred years are technological change and a highly educated population that can adopt innovation quickly. However, he warns that the capital-intensive technology of the 21st century could be difficult for low-wage countries to implement.

Yet, our generation is poised to break the cycle. Just as the second quarter of the 19th century saw widespread literacy meet new technology, we are seeing a similar convergence. Today, 65% of the West African population is educated, and Ghana’s literacy rate is approximately 85%—a stark contrast to the less than 20% literacy rate during the First Republic in 1957. Our generation is already in the globalization elevator, but we also have ropes in hand as a second option, and we are riding on the shoulders of Artificial Intelligence. 

The Future – Ghana and West Africa. 

We are motivated and excited about the next quarter of this century, and we are determined not to miss its opportunities. While we acknowledge the cautions raised by economic historians, we are prepared to overcome these challenges because the tools for addressing underdevelopment are now widely available.

The Global Futures Institute will probe further to answer a critical question: how can 21st-century globalization become a mutually beneficial collaboration between all nations? The Institute calls on the youth of Ghana and West Africa to join our teams as we navigate the post-pandemic era of building businesses and growing economies.

Nana Benyin Quaison
Research Director.