Businessmen trust globalization amid challenges and supply chain disruptions

Despite global challenges and supply chain disruptions, more than 80 percent of businesspeople agree that globalization is succeeding in the five pillars of trade, capital, technology, talent and sustainability. The role of trade in driving economic growth has received the most support, says Standard Chartered's new white paper. However, rising geopolitical tensions, the global energy crisis, supply-chain issues and declining foreign investment have raised doubts about the future role of globalization.

According to the white paper, 86 percent of business people said that global trade can lead to more sustainable development, and 83 percent believe that globalization helps make supply chains more resilient. Leaders also called for a more collaborative and transparent approach to international trade agreements with complementary domestic policies.

Global trade has had a positive impact on sustainable development. Almost all (95%) entrepreneurs agree on the need for capital to be able to move freely. While 70% of businessmen believe that global governance mechanisms are effective in handling environmental issues, growth and sustainability goals need to be balanced in developing markets.

Although 70% of businessmen were positive about the effectiveness of global governance mechanisms, only 56% believe that global efforts are needed to address climate change. Respondents added that the transition to a net-zero future needs to be accelerated.

Respondents emphasized the importance of three key aspects of capital. Almost all respondents (95%) believed that capital should be able to flow freely around the world, and leaders agreed on the benefits that financial markets bring to developed and developing markets and the need for governments to strive to attract foreign investment.

Technology emerged as a strong theme, with 75% of businesspeople saying the free flow of data globally has had a positive outcome. 74% of business people agree that being able to hire talent from anywhere in the world is a good thing for businesses.

Compared to other markets, businessmen in China were most positive about the role of digital assets in solving the challenges of moving money around. Businessmen in India were more positive about the role of trade than in the other pillars, and most would say that global trade can lead to more sustainable development. Businessmen in Ukraine were the most likely to say that global services have created significant opportunities where they live.

Globalization needs to be reset and the next chapter must be fairer, more inclusive and more sustainable. Despite the complex issues, businessmen overwhelmingly favor globalization for more resilient and inclusive trade, greater capital flows to bridge funding gaps in growing markets, and more people to benefit from technological advances.