“Global economic systems today are interconnected international networks, digitally operationalized, and technologically enabled.”
Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech
When we look at and analyze global economic systems today, it is striking that they are now interconnected international networks, digitally operationalized, and technologically enabled.
This is nothing like the economic systems of 20 years ago. Economies have transformed into operating systems. Just like the ones that manage the computer you have in front of you.
I have already mentioned that globalization is now in its 2.0 phase precisely because of this transformation. The global digital interconnection of economies is the most relevant structural fact of these two decades. It is not the rise of China. China could only rise because markets became interconnected. Without this, it would be there, as big as ever, but isolated within its walls.
The most relevant outcome of this phenomenon is an unprecedented optimization of performance in economies and their fundamentals. And a change in mindset and perspective on how processes, dynamics, and flows began to occur in economic systems.
When economies become operating systems, we need to shift our focus from the world of finance exclusively and connect it to new logics of increment and exponentiation that only operating systems – which are, after all, technological platforms that make things work within hardware – can provide. And enable.
Ah… the hardware in this case is society.
Connected societies are, at least conceptually, more digitally inclusive. Connection does not solve glaring inequities and inequalities between social strata or countries, but it puts the less fortunate in a position to, at least, be incorporated into the system, without which they would simply, and gradually, cease to have economically active existence.
This is part of the operating system. But from this base, everything only expands. See where and how:
The platformization of companies, jumping out of their niches and becoming players often larger than many national economies;
The productive optimization at scale, as well as the reduction, also at scale, of costs and values involved in productive activities and service provision;
The exponential advancement of effectiveness and results in the retail and commerce sector;
The expansion and acceleration of trade commerce between nations and companies, now increasingly borderless, but mainly, now increasingly technologically enabled;
The online integration of financial systems and global stock exchanges, giving the financial system an unprecedented capacity for interconnection;
In this context, the recent phenomenon, underway, of democratizing stock investments for layers previously excluded from this business environment, thanks precisely to the breakdown of barriers provided by digitization and decentralization of investment controls in companies, breaking the previously existing and dominant oligopolies;
Artificial Intelligence breaking barriers in all layers of financial systems, endowing them with increasingly exponential processing and business acceleration capabilities, as well as greater efficiency in everything, notably the ability of economies to become more and more innovative, which, in turn, will indefinitely feed back into the entire chain described so far.
These are just some of the components and programs of the new global economic operating system, already in full operation.
You don’t need to worry about updating your computer for this new system because it is in the cloud and is already pervasive to everything that involves economic systems today. Therefore, you already have one right there on your machine. And in your life.
Text by Pyr Marcondes, Senior Partner at Pipeline Capital Tech, originally published in Exame.