Nations Look Within, Globalisation Wanes

Globalisation, once the buzzword for interconnected economies, appears to be losing its sheen. This week’s Government Work Report from Chinese Premier Li Qiang signals a significant strategic shift. China, the world’s factory, is now prioritising domestic consumption over exports. This pivot, making domestic consumption its top priority, underscores a global trend of nations increasingly looking inwards.

This inward turn isn’t solely a Chinese phenomenon. India’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, Brexit in the UK, and even former US President Trump’s protectionist policies, all point towards a similar direction. Rising trade tariffs, technology transfer restrictions, and geopolitical uncertainties are compelling even developed economies like Germany and the UK to bolster domestic investments and consumption. Germany’s focus on infrastructure and defence spending, and the UK’s increased defence budget, are cases in point.

Finance Skills For A Changed World

What does this evolving global landscape mean for businesses and professionals, particularly in finance? As economies become more localised and potentially more regulated, the demand for finance professionals with practical, applied skills is set to rise. In this context, the collaboration between KPMG India and XLRI Delhi-NCR to launch an Executive Development Programme in Applied Business Finance is timely. This programme aims to bridge the gap between theoretical finance and its real-world application, equipping professionals with crucial skills in corporate finance, ESG, treasury, and more.

This focus on applied skills is vital. As businesses navigate a more complex, inward-focused global economy, professionals who can make informed financial decisions, understand regulatory nuances, and drive innovation will be in high demand. The programme, blending XLRI’s academic rigour with KPMG’s industry expertise, reflects the growing need for practical, industry-driven education in finance.

Fintech Adapts To New Norms

Furthermore, the rise of fintech companies like Flex, which recently secured $225 million in funding, also underscores the evolving financial landscape. Flex’s all-in-one platform for business owners, integrating payment automation, expense management and banking solutions, highlights the need for streamlined financial operations, especially for small and medium businesses in this new era. Automation and efficiency will be key as businesses adapt to potentially disrupted supply chains and altered trade flows.

What should businesses and finance professionals do? Adaptability and continuous learning are paramount. In a world turning inwards, understanding local markets, regulations, and building resilient, efficient operations will be crucial for success. The focus needs to shift from just globalisation to ‘glocalisation’ – adapting global strategies to local contexts. The brave new world beckons, demanding agility and a fresh perspective.

Image Courtesy: X (XLRI Delhi NCR)