The world’s economy is completely globalized – Peres

The world’s economy is completely globalized – Peres
16 September 2011

“No national economies, in fact, exist in the modern world, there is only the global economy and national “poverties”, Shimon Peres, President of the State of Israel, stated in his special speech at the 8th Yalta Annual Meeting of YES.

President Peres compared the world with a ship containing 193 cabins, which is equal to the number of countries. “Each cabin influences the life of the entire ship. Where a new state is founded, it occupies a new cabin. And developments in the cabin somehow influence the ship movement. However, this global ship has no captain and we don’t know the direction we sail in. And we can’t influence this, just like the USA occupying the same kind of cabin in the ship like we do.”

Globalization of the economy forces us to review our conventional views on it. In particular, according to President Peres, the impact of human psychology on economic processes increased repeatedly. “People influence markets, while markets influence people not so powerfully. Remember the story when the Spanish national team became the world champion and the following morning the goods consumption in Spain boosted dramatically. No scientist may predict what mood the world would wake up in tomorrow.”

The same way, the criteria consumers use to select goods have changed radically in the modern world. Quality of goods played the main role in the past, nowadays this is the relations between a manufacturer and people that matters. “Whether the company would sell more products depends not on the product quality, but on the consumer attitudes and other stakeholders’ attitudes to the company”, he noted. The company image, its social commitments play a huge role. “The company striving for success should not create the impression that it earns from poverty.”

Finally, leadership undergoes serious changes – both in private sector and in state sector. “A leader today is not the person standing on the top. He is the person moving forward,” Shimon Peres emphasized. According to him, this rule is applicable both to business and politics: “Governments today would like to be popular. But populists can’t govern normally. They make everything to be liked and, as a result, people stop believing them.”

The 8th Yalta Annual Meeting entitled “Ukraine and the World: Common Challenges, Common Future”, organized by the Yalta European Strategy (YES) in partnership with the Victor Pinchuk Foundation, will take place in Livadia Palace, Ukraine from 15th to 18th of  September 2011.

Special Partners:
Alfa-Bank Ukraine

Visa Inc.
International Renaissance Foundation

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Yuval Harari
Yuval Harari
Professor, Hebrew University of Jerusalem, 16th YES Annual Meeting, 2019
«Technology is now really upgrading humans into gods.»