Tuesday, October 16, 2018 11.58AM / ICA Blog of Apr 10,
2018 / Picture from bushcenter.org
I had the pleasure to shake
hands with Mr. Wim Elfrink, Cisco’s Chief Globalization Officer.
He highlighted some major
(FDI) globalization trends, and I like to share with you the TEN (10) most
striking ones that are open for discussion:
- This will be the decade of
China, the future, however, will be India
- In 2020, 3 billion people
will be connected to the Internet and this will affect our communication
behavior, knowledge, access to resources and quality of life.
- 50% of the world’s population
will be urbanized, this means for instance 500 million urban dwellers in India.
- The key reason for Cisco,
setting up a second Headoffice in Bangalore was proximity: within a 5 hrs
flight radius, 70% of the world’s population can be reached.
- Other key criteria for
choosing India, were growing talent pool, co-operative government, proximity to
innovation, sizable domestic market, law and patent protection, top 5 economy
in 2020, proximity of global partners, and an active investment community.
- Population in countries such
as Germany, Sweden and Japan is decreasing. The percentage of 65+ in developed
countries is (rapidly) increasing to more than 20%. This is significantly
slowing down the economy.
- Also China will face
difficulties to accommodate the increasing demand for the right talents due to
its one-child policy.
- Countries such as Pakistan,
Iraq, Yemen, Saudi Arabia, Kenya, Bangladesh, Nigeria and to a lesser extent
India show huge population growth figures. That is what counts to embrace
further economic development.
- 300 highly educated persons
are leaving the Netherlands each day (!) to pursue career opportunities abroad.
- Think out of the box, develop
a vision and execute. Do not engage in FDI for labor arbitrage or cost
reductions only! It should always be a combination of Costs and Capabilities,
in order to remain competitive in the long run.
This leaves the question:
Will Iraq, Bangladesh or Nigeria be the next hot spot for FDI in 2020?
Any comments or suggestions are welcomed.
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