A New Era of Reglobalization: Why Companies Should Embrace Global PartnershipsMay 18, 2023

One of the most important lessons the past year taught us is that global public-private partnerships are critical in solving the world’s greatest challenges. Had the United States and its allies not come together to counter Russia’s invasion of Ukraine, our world would look far different today – unpredictable, unstable, undemocratic. On another continent, a first-of-its-kind malaria vaccine, born from global public-private partnership, was officially recommended by the World Health Organization, paving the way for a safer future for generations to come.

Today the countries of the G7 will meet in Japan to once again show the need for and importance of global partnerships. From climate change and poverty to national security and global health crises, the challenges facing our world require collective action and collaborative solutions. And governments cannot do it alone. Companies and corporations have an outsized role to play in solving these issues. Now more than ever investing in global partnerships and supporting strong institutions are not only good for the bottom line and long-term business goals but also benefit society as a whole. 

However, this line of cooperative thinking was not always the case. Calls for a retreat from globalization and multilateralism have been underway after years of unfortunate events brought about feelings of uncertainty and insecurity. For example, the COVID-19 pandemic sent global manufacturing and supply chains into disarray, leaving many businesses, small and large, on the hunt for alternate solutions. While pulling back from the rest of the world may seem like the safe, reliable option, doing so leaves companies at a loss. 

We are now in an era of reglobalization. Whether through new partnerships or building onto existing ones, the benefits remain the same. Here are four distinct ways in which global partnerships benefit business: 

1. Partnerships allow business leaders to expand their reach, tap into emerging economies, and capitalize on cultural insights. Economic uncertainty and geopolitical tensions are at the top of everyone’s mind today. Yet, there are countries emerging as critical players on the global stage. Foxconn’s recent announcement of a major manufacturing expansion in India is one example. Engaging in partnerships in these burgeoning regions offers businesses a unique advantage for achieving their strategic goals.
2. Forging alliances across borders grants companies access to a diverse talent pool, stimulating innovation and creativity. In a world where competitive advantage is contingent on talent, these partnerships offer companies an advantage in attracting the best and brightest from around the world. GE Global Research Centers are a perfect example of this. Through partnerships with academic institutions and research organizations around the world, GE gains access to a diverse talent pool of scientists, engineers, and researchers.
3. Companies thrive off the stable and secure business environments that public-private partnerships and robust governance frameworks create. Such institutions reduce risks and promote long-term planning and investment – something that is vitally needed after the COVID pandemic, particularly in the global health arena. In return, by engaging these institutions, companies can actively contribute to their development through capital and influence, ensuring a more favorable business environment for all. 
4. Businesses engaged in global partnerships are more in line with their consumers and investors. By fostering partnerships that promote good governance, human rights, and environmental sustainability, companies not only fulfill their moral obligations but also build trust with consumers and investors. Take the war in Ukraine as an example. One of the many lessons it taught European states is the need to diversify their energy supplies. By prioritizing global partnerships with such states, green energy companies are spearheading transformative change and are doing so in line with consumers and investors in the region.

European Council President Charles Michel wrote as a preview to this week’s G7 summit:

“We will not achieve [our goals] through a global hodgepodge of different norms, standards, and trading practices, in an atmosphere of heightened security tensions. This would catapult the world back in time, away from the cooperative multilateral approach defined by shared international standards.”

Companies are in a unique position to help mitigate such backpedaling. Collaboration across borders allows companies to pool resources, share research and development, and leverage complementary strengths. These partnerships accelerate the pace of innovation, leading to breakthrough discoveries, disruptive technologies and novel solutions to pressing global challenges.

Global partnerships have been a part of our daily lives for over 75 years now. And while their presence has brought much good to the world, there is much more to be done. One of the United Nations Sustainable Development Goals (SDGs) is devoted solely to this – revitalizing partnerships to address the world’s problems. It is the top issue that will be discussed at the G7 summit – how strong partnerships contribute to economic resilience, food security, nuclear nonproliferation and more.

Companies that recognize the importance of global partnerships and strong institutions are well-positioned for success in today’s world. Embracing collaboration expands market opportunities, mitigates risks, fosters innovation, and enables collective action on global challenges. By championing these values, companies not only secure their own prosperity but also contribute to the sustainable development and well-being of societies worldwide. It is imperative for companies to step up, forge meaningful partnerships, and invest in the institutions that underpin a prosperous future for all.