Globalisation has not always led to greater equality.
There have been many elements of success. For example, poverty has been halved in the two decades since 1990.
But research from the International Monetary Fund also shows financial globalisation – the liberalisation of international capital flows – led “to limited output gains while contributing to significant increases in inequality”.
In the decade since the global financial crisis, “a substantial part of society has become disaffected and embittered,” says Klaus Schwab, founder and executive chairman of the World Economic Forum. “Not only with politics and politicians, but also with globalisation and the entire economic system it underpins.”
As world leaders, politicians, CEOs and thought leaders come together in Davos, Switzerland for the Forum’s Annual Meeting, they’ll focus on these imbalances and address the meeting’s theme: Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution.
As a global platform for cross-border payments and Foreign Exchange, with operations that spans across 160+ countries including a mix of emerging and developed markets, Finablr is committed to ensuring that globalisation creates sustainable and inclusive growth.
Empowering the mobile workforce
In an article published before the Annual Meeting, Klaus Schwab draws a distinction between globalisation and globalism: Globalisation is a phenomenon driven by technology and the movement of ideas, people and goods. But globalism is an ideology that priorities the neoliberal global order over national interests.
Finablr’s business model is built upon globalisation; increased migration and an increasingly mobile global workforce. Our products are designed to serve consumers moving freely around the world and who need their money to move as seamlessly as they do.
And it’s not just people who want to travel with their money. Globalisation has led to more people than ever before working outside their home country. The World Bank estimates the global migrant workforce of around 258 million people sent $613 billion in remittances back to their home countries in 2017.
The majority of this, around $466 billion, goes to low and middle-income countries and can have a significant impact on the lives of the beneficiaries and the families they support.
Finablr Network Brands are amongst the key players facilitating this movement of money. The Finablr global platform processed more than 150 million transactions in 2017 serving markets, home to 63% of the global migrant population.
The important role of remittances in alleviating people from poverty is highlighted by the fact that the UN’s Sustainable Development Goals include a target to reduce the global average cost of sending money back home.
In the first quarter of 2018, sending $200 cost an average of 7.1% , more than twice as high as the UN’s target of 3%. The World Bank says the introduction of more efficient technologies will help bring these costs down and Finablr is committed to support the UN’s targets.
Not overlooking rural communities
At the same time, operating globally renowned brands around the world, Finablr also operates as a local player in each of its domestic markets, listening to the local needs of customers and is responsive to their behaviours.
Part of that commitment includes serving communities where cash is still the predominant form of money and where internet connectivity cannot be presumed.
Here Finablr network brand, Xpress Money offers many essential services. Its partnership network spans more than 160,000 locations in more than 160 countries, and additionally includes money transfer operators, banks, telcos, as well as emerging fintech players.
Such a formidable network gives unparalleled reach and insight that is both truly local and truly global. In this way Finablr works with local communities, financially enabling both businesses and individuals.
With the World Economic Forum calling for wider engagement and a new global-governance architecture, Finablr’s network brands are well-placed to help inform and enact these new models of working.