Introduction
Globalization is not merely a political construct, but a process of dismantling three technical barriers: the costs of moving goods, ideas, and people. In his analysis, Richard Baldwin argues that each "unbundling" of these constraints has fundamentally reshaped the global order. Understanding this evolution is crucial for states and businesses to navigate a reality where physical distance no longer protects local labor markets. This article explores the mechanisms of old and new globalization and previews the upcoming service revolution.
Three Barriers: The Costs of Transport, Ideas, and People
The first phase of globalization, triggered by the steam revolution in the 19th century, broke the barrier of transporting goods. This "first unbundling" allowed the separation of production and consumption locations. However, the high cost of transferring ideas meant that innovation remained concentrated in a few clusters in the North. This led to the phenomenon of the Great Divergence: rapid industrialization in wealthy nations alongside the deindustrialization of the Global South, which became merely a supplier of raw materials.
Critics of Baldwin’s theory note, however, that this division was not solely the result of technology. Power relations, colonialism, and forced changes in ownership structures played an equally vital role in cementing the asymmetry between metropolises and peripheries.
The Great Convergence and GVC Networks
At the end of the 20th century, the information revolution lowered the costs of moving ideas, initiating the second unbundling. Global value chains (GVCs) emerged, in which the manufacturing process was dispersed across continents. Know-how began migrating to selected emerging economies, triggering the Great Convergence—rapid GDP growth in countries like China and India at the expense of the G7 nations' share in the global economy.
In this new regime, profits are distributed along the smile curve: the highest value is generated by research, design, and services, while physical production has become commoditized. By controlling these networks, global corporations limit the economic sovereignty of states, which must compete for a share in the chain, often settling for the role of a low-cost subcontractor.
Telepresence, AI, and Virtual Immigration
We are currently on the threshold of the Third Unbundling, which, through telepresence and telerobotics, will reduce the cost of moving people. These technologies will enable virtual immigration—the remote provision of physical and cognitive services by workers from anywhere in the world. Artificial Intelligence is accelerating this process by replacing personal supervision and automating office tasks, opening the service sector to global wage arbitrage.
These changes bring immense legal and ethical challenges. Telerobotics raises questions about labor jurisdiction and liability for remote actions. Regional responses vary wildly: the EU focuses on regulation, the US experiences polarization, and Arab countries see an opportunity for a technological leap. Baldwin’s theory, while insightful, must be supplemented by ecological costs and the carrying capacity of the biosphere, which represent the ultimate barrier to growth.
Summary: Toward a Wisdom Economy
The future of globalization will unfold between scenarios of hyper-globalization and selective re-globalization. As Professor Elżbieta Mączyńska emphasizes, the knowledge-based economy must evolve into a wisdom economy, where technology serves social goals rather than just profit optimization. A new social contract must include virtual workers and protect local communities from erosion.
Globalization, like a river, constantly changes its course. Will the Third Unbundling become a symbol of a new era of cooperation, or will it deepen divisions? The answer depends on our ability to create institutions that survive the digital transformation and ensure a fair distribution of benefits in a world without borders for remote work.
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