Page 20 - Insurance Times April 2020

Insurance industry Cover Story

response to Covid 19

coronavirus crisis in

the connected global

economy

oted Canadian philosopher and media theorist, collaborators. Enhanced by global nature of social media,
Marshall McLuhan was a lecturer at the people across national boundaries have begun to share
University of Toronto. His prediction of “a global similar views, aspirations, and even similar heroes and idols.
Nvillage”, which first appeared in his book ‘The People are talking about similar topics, dressing according
Gutenberg Galaxy’ in the early 1960s was grossly ridiculed. to similar codes, eating similar food, sharing similar dreams,
His belief was that the world was entering a “fourth age’’, and protesting against similar evils, as if the world were a
the electronic age, where people spread over the globe single unique place. With economic interdependence and
would be able to obtain the same information through social integration, the local flavour is being largely
technological intervention. McLuhan’s idea of a global extinguished.
village became a reality with the introduction of internet
in the year 1989. Professor Klaus Schwab coined the phrase “the fourth
industrial revolution”,which has been fundamentally
Fast modes of transportation, radio and television changing the way people live, work and relate to one
broadcast, high speed computing capabilities, continuous another. The world today is characterized by a range of
technological innovations, wired and wirelessconnectivity technologies that are fusing the physical, digital and
and use of artificial intelligence have brought the world biological worlds, impacting all disciplines, economies and
closer together and connected different parts of the globe industries. It is said that at the heart of his analysis was
economically, socially and politically. National economies the conviction that the fourth industrial revolution will be
have become more homogeneous and more integrated with characterised by collaborations across geographies, sectors
the outside world. People are moving across international and disciplines which in turn would offer immense global
boundaries in unprecedented numbers and frequency. opportunities.
People from different countries are getting to know each
other and exchange views and ideas, often becoming Is the connected global economy without pitfalls?The
connected global economy inevitably hasboth merits and
About the author risks. The extent to which the benefits are maximized and
the risks mitigated depends on the quality of governance
Deepak Godbole protocols, policies, norms and standards that shape the
Secretary General, development. Unfortunately, the process of globalization
Insurance Institute of India has not been able to eradicate national and ethnic conflicts.
Economic integration has also been leading to increasing

20 The Insurance Times, April 2020