DHL and the New York University Stern School of Business have released the DHL Global Connectedness Index 2020.
The report, now in its seventh edition, is the first comprehensive assessment of globalisation during the spreading COVID-19 pandemic, tracking international flows of trade, capital, information, and people across 169 countries and territories.
After holding steady in 2019, current forecasts implied that the index would fall significantly in 2020 due to the distancing effects of COVID-19 on societies, such as closed borders, travel bans, and grounded passenger airlines.
Nonetheless, according to the latest report, the pandemic is unlikely to send the world’s overall level of connectedness below where it stood during the 2008-2009 global financial crisis.
The index noted that trade and capital flows “have already started to recover” and international data flows surged during the spreading pandemic as in-person contact migrated online, boosting international internet traffic, phone calls, and e-commerce.
“The current crisis has shown how indispensable international connections are for maintaining the global economy, securing people’s livelihoods, and helping companies strengthen their trading levels,” said Chief Executive Officer of DHL Express, John Pearson,
“Connected supply chains and logistics networks play an essential role in keeping the world running and stabilising globalisation especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge. The recent vaccine breakthrough has put a spotlight on the systemic importance of fast and secure medical logistics dependent on a worldwide interconnected network that effectively ensures international distribution.”
While COVID-19 has disrupted business and life around the world, the report pointed out that it had not severed the fundamental links that connect nations.
“This report shows that globalisation did not collapse in 2020, but that the pandemic did transform – at least temporarily – how countries connect. It also demonstrates both the dangers of a world where critical linkages break down and the urgent need for more effective cooperation in the face of global challenges,” commented GCI lead author, Steven Altman.
“Stronger global connectedness could accelerate the world’s recovery from the COVID-19 pandemic, as countries that connect more to international flows tend to enjoy faster economic growth.”
