Globalization in 2022: How Countries Are Adapting to the Changing Landscape
On the second day of the U.S. Chamber of Commerce’s 2022 Global Forum, experts explored economic trends, sustainability outcomes, energy conservation, and how counties are adapting.
Air Date: May 11, 2022
Moderator: Myron Brilliant, Executive Vice President and Head of International Affairs, U.S. Chamber of Commerce, Sean Heather, Senior Vice President, International Regulatory Affairs & Antitrust, Gary Litman, Senior Vice President, Global Initiatives, Martin Durbin, Senior Vice President, Policy, John G. Murphy, Senior Vice President for International Policy, Neil Herrington, Senior Vice President, Americas, Scott Eisner, President, U.S.-Africa Business Center, Sr. Vice President, U.S. Chamber of Commerce
Featured Guests: Caroline Louveaux, Chief Privacy Officer, Mastercard, Rich Carter, Chief Digital Officer, Eli Lilly, Mike Parra, CEO, DHL Express Americas, Daniel Hanna, Global Head of Sustainable Finance, Standard Chartered Bank, Vivek Pathak, Global Head of Climate Business, International Finance Corporation, Dr. Srinivas Veeramasuneni, Chief Technology Officer, USG, Peter Huntsman, CEO, Huntsman Corporation, Dr. Ngozi Okonjo-Iweala, Director-General, World Trade Organization, Debbie Mucarsel-Powell, Special Advisor, Summit of the Americas
Globalization is evolving and reflecting the current geopolitical climate and changes we are experiencing worldwide. From supply chain issues to the gas and energy crisis, countries across the globe are experiencing ramifications resulting in devastating outcomes.
To persevere through these obstacles, we must work together globally to forge a sustainable future. On day two of the U.S. Chamber of Commerce’s 2nd Annual Global Forum, experts explored the topic of globalization and how businesses, governments, and citizens are adapting to the changing landscape.
Day two began with opening remarks by Myron Brilliant, Executive Vice President and Head of International Affairs at the U.S. Chamber of Commerce. Brilliant introduced many of the pertinent issues of focus on the agenda, including digitalized economic trends, sustainability outcomes, and energy conservation. He then introduced the President of Ecuador, His Excellency Guillermo Lasso, who discussed the importance of these issues from a South American perspective in a keynote address.
Here are some key takeaways from the panels that followed throughout the second day of the 2022 Global Forum.
The Current Global Digital Transformation Is Calling For More Responsible Governance
According to Mathias Cormann, Director General of OECD & Corporations on the Digital Frontier, technology and innovation drive positive change, contributing to global prosperity, sustainability, and wellbeing. Currently, he noted, “we are witnessing a massive digital transformation sweeping across the world.”
“As technologies are rapidly transforming our economies and our everyday lives, responsible governance, which keeps pace with developments, is critical to optimizing the benefits by better managing the potential risks associated with the digital transformation of our economies,” said Cormann. “Digitalization has disrupted and reshaped competitive dynamics, creating new markets by transforming existing ones. Ensuring that policies and regulations remain appropriate and well is key.”
“We need to promote policies that can help seize the benefits from the digital economy,” he continued. Examples of such policies include those that focus on providing more universal access to high-quality digital infrastructure, boosting connectivity, technology diffusion, SME digitalization, cyber security, and appropriate arrangements for taxation, competition, and digital trade.
Caroline Louveaux, Chief Privacy Officer at Mastercard, and Rich Carter, Chief Digital Officer at Eli Lilly, added to the conversation, highlighting the corporations spearheading the digital frontier.
Three Technology Advancements Are Moving the Needle on Climate Change
In terms of technologies that are helping move the needle on climate change, Mike Parra, CEO of DHL Express Americas, noted three advancements.
“Number one is in re-fleeting our air operations,” he said. “Our biggest CO2 emissions as a transportation company [are] in the air … Over the last four years, we've seen already a reduction and an improvement of 18% more energy-efficient fleet. So that's a big focus there.”
“The second focus is around sustainable aviation fuel,” Parra continued. “DHL continues to work with SAF producers and startups, both in the U.S. and in Europe, and recently we signed a deal with Neste and Air BP for one of the largest SAF offtake agreements to date globally.”
The last area of focus, he noted, is the electric aircraft.
“We have purchased 12 electric aircraft… [that] carry a payload capacity of 2,600 pounds, or 1200 kilograms, and we're going to use those aircraft starting in 2025 on some short line haul lanes that we have in the United States,” Parra said.
The Rise in Energy Prices Has Caused Instability in Pricing — Especially in the Food Industry
The rise in energy prices around the world has become an ongoing and persistent issue, with the current war on Ukraine exacerbating the tight markets.
“We're seeing changes today that we have not seen in decades,” said Peter Huntsman, CEO of Huntsman Corporation. “We used to price our products on a quarterly basis … In the last year, [we] went from quarterly pricing to monthly price to weekly pricing, and now, for the first time literally in our industry's history … we're moving prices on a daily basis.”
High energy prices have impacted various sectors, like fertilization, raw materials, and cold chain supply. This greatly impacts the food industry as a whole, and consumers are experiencing less stability in pricing.
“These prices are going to be fluctuating and changing, I dare say, almost on a daily basis or weekly basis because we've seen such massive movement and volatility,” Huntsman said.
Supply Chain Issues and Restrictions Are Impacting Various Sectors and Industries
Supply chain issues have been an ongoing concern since the start of the pandemic, impacting countries around the world.
“We've worked with specific industries like vaccine manufacturers, who are experiencing supply chain issues,” said Dr. Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO). “Some of them have to come from export restrictions and prohibitions that stop them from getting their inputs to where they need them for production.”
“We've been able to meet with the CEOs every six weeks, looking at their supply chain problems, at their raw materials problems, and trying to work with our members to make sure that these restrictions are lifted … and that they don't form an impediment,” she continued.
According to Dr. Okonjo-Iweala, WTO has reduced export restrictions from 119 at the beginning of the pandemic to about 35 as of April 2022.
The day wrapped up with a look into the future by Debbie Mucarsel-Powell, Special Advisor for the Summit of the Americas. Scott Eisner, President of the U.S.-Africa Business Center and Senior Vice President at the U.S. Chamber of Commerce, gave the closing remarks.