Tuesday, Apr 09, 2013
Abu Dhabi: The World needs leadership to utilise the positive aspects of globalisation and its fruit of connectivity and global tourism but at the moment such a leadership is not visible, according to an expert.
G-7 [G-8], the group of industrialised nations, is preoccupied with old crises and Brics [the group consisting of Brazil, Russia, India, China and South Africa] has not grown to the world leadership, said Prof Ian Goldin, Director , Oxford Martin School, University Oxford.
He was talking at the Global Summit of the World Travel and Tourism Council [WTTC] in Abu Dhabi yesterday.
Talking about the positive impact of globalisation, he said, since 1980 life expectancy has gone up by 20 years, illiteracy rate has reduced, and number of people earning under one dollar a day has gone down by 300 million, despite the population going up by two billion.
But the same globalisation has caused two major problems. Inequality of wealth is growing and one billion people across the world believe that they are not the beneficiaries of globalisation, the professor said.
Second problem is that thde open door policy of globalisation also brings bad elements along with good things. Internet and other [physical] connectivity make the world more vulnerable, Goldin said.
There is an uncertainty about demographic growth. It is not clear whether the world population will grow up to 9 billion or 12 billion by 2050. Then the world has to deal with the growing population of old people, he pointed out.
Talking about the need of sustainable economies, Goldin said China’s economic growth will be sustainable by 7 per cent in the coming 15 years. The China’s official figure is 6.5 per cent but that is a conservative estimate, Goldin said. “China will become the largest economy in the world in the near future,” he said.
Two billion more people will emerge as the new middle class and they will be potential tourists, Goldin said.
The progress in technology will be unpredictable. He pointed out the fact an expert had predicted in 1895 that a flying machine heavier than air would be impossible. But aeroplane became a reality very soon.
Similarly, devices of ten thousand more times powerful than those currently available will come up with the same price very soon. The computer capacity will be doubled every year with the same price, he said.
But all these advantages of technology are enhancing the connectivity, which poses risks also. The swine flue originated in Mexico was spread to 130 countries in a week, Goldin pointed out.
Travel and Tourism industry has the potential to utilise the benefits of technology, he said. This sector has created 250 million jobs in 2012, Goldin pointed out.
He said the world needs the leadership to utilise the positive aspects of globalisation and connectivity. As he said G-8 and Brics are not in a position to give such a leadership,andthinks the world is in a state of a transition of power.
By Binsal Abdul Kader Staff Reporter
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