The trend of economic interconnectedness as outlined in KPMG’s Future State 2030 series on the global megatrends impacting governments.
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The interconnected global economy will see a continued increase in the levels of international trade and capital flows, but unless international conventions can be strengthened, progress and optimum economic benefits may not be realized.
For governments, the trend toward further economic interconnectedness brings significant potential and a major push toward global free trade could shift 650 million people out of poverty over a 10-20-year period.1 However, there are also new challenges as economies are increasingly connected to risks beyond national borders. These risks not only move quickly, they also defy the scope of national regulation, demanding international cooperation. As the trend toward increased economic interconnectedness is expected to continue, governments throughout the world will need to ensure that they have the policy frameworks in place to capture the benefits of trade and manage the risks.
1William Cline. September 2003. “CGD Brief. Trading up: Trade Policy and Global Poverty (PDF 83 KB)”. Center for Global Development, Peterson Institute for International Economics.