Siilasmaa warns against backtracking in globalization

Risto Siilasmaa, the chairman of the telecommunication company Nokia, said here Friday that Europe should fight for the continued existence of the rule-based global system.

Siilasmaa gave his comments as the Confederation of Finnish Industries published a survey predicting that the rate of globalization will accelerate, but instead of growth in trade in goods, focus of growth will be in services, data and digitalization.

Siilasmaa said that while globalization in traditional trade is challenged currently, digitalization takes globalization forward at high speed, but remains somewhat unnoticed due to the modest inclusion of the ICT sector in statistics that measure economic development.

He meanwhile warned against backtracking in globalization. "Globalization has raised huge numbers of people from poverty. If we take steps back, the standard of living of billions of people will decline."

Siilasmaa also noted globalization has been criticized, for example, on account of the poor conditions in production plants in developing countries.

"But people got the work first. Now the pressure groups working for improved conditions should be seen as part of globalization," he formulated.

A survey carried out by Boston Consulting Group indicated that small and medium sized companies in Finland were most concerned about the hazards of protectionism as they cannot relocate production for different markets in the way major companies can.

Three thirds of them believed though that digital services and technologies help them grow internationally.