Rising economic nationalism and rapid digitalization are radically redefining globalization—with profound implications for Asian businesses and economies. With effective leadership, the region will be in a strong position to make the transition needed to confront the challenges—and capitalize on new opportunities.
Exports of manufactured goods have long been the catalyst of growth in Asia, but under the new globalization framework, services will also make a large contribu-tion. Invisible data highways and cloud storage, rather than the supply chains of multinational companies, will become increasingly important in delivering services to vast, borderless communities of digitally connected consumers.
National competitiveness will have less to do with abundant cheap labor and more to do with leveraging technology and the skills required to enhance operating efficiency and excel in advanced manufacturing and digital services. Countries must improve their business environments and ensure that the latest technologies and infrastructure are widely accessible so that small enterprises can participate in global value chains.