512
sion gives way to the light of renewal and the dream of op-
portunity is available to all.
This future will not be easy to reach. It will not come
without setbacks, nor will it be quickly claimed. But the
founding of the United Nations itself is a testament to hu-
man progress. Remember, in times that were far more try-
ing than our own, our predecessors chose the hope of uni-
ty over the ease of division and made a promise to future
generations that the dignity and equality of human beings
would be our common cause.
Globalization 4.0 and the New Logistics
“THE GRAVITY OF TRADE HAS SHIFTED”
Address by DAN BRUTTO, President, UPS International
Delivered to the Foreign Press Association, New York, N.Y., Sept. 22, 2010
T oday, I’d like to discuss a new phase of global trade and
advancements in logistics that are helping to open op-
portunities for exports and growth around the world. I call
this trend Globalization 4.0.
Let me give you some context. Global trade dates back
to ancient times. And you could define Globalization 1.0 as
the long era of trans-Atlantic trade that started in the late
19th Century and continued through the Cold War.
Then, the Berlin Wall fell, and markets opened in the
old Communist bloc. The emergence of new technologies
such as the Internet and mobile phones also boosted global
commerce during this decade of growth—an era that also
saw new trade agreements and falling tariffs around the
world. This time during much of the 1990s was globaliza-
tion 2.0.
In 2001, terrorist attacks slowed the march of globaliza-
tion, but the world continued to flatten. China entered the
World Trade Organization, and India became a technol-
ogy and services powerhouse. Along with resource rich
countries Brazil and Russia, the so-called BRIC economies,
experienced dramatic growth.
Author Thomas Friedman described this era as Global-
ization 3.0. In 2005, when his book “The World is Flat”
was released, the United States was a big driver of global
growth. U.S. consumers shopped till they dropped by
leveraging rising house and asset prices. Imports clogged
U.S. ports and warehouses, and prices for commodities
and raw materials spiked.
Then the financial crisis gave us an economic body slam.
Major U.S. and European banks imploded in 2008. Global
trade collapsed—but not for long.
Trade for the past year has boomed and is now ap-
proaching pre-crisis levels. Why the swift V-shaped re-
covery in global trade? For one thing, developing nations
made trade agreements with each other and lowered tariffs.
Emerging economy business leaders responded by pushing
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VITAL SPEECHES OF THE DAY
It falls to us to fulfill that promise. And though we will
be met by dark forces that will test our resolve, Americans
have always had cause to believe that we can choose a better
history; that we need only to look outside the walls around
us. For through the citizens of every conceivable ancestry
who make this city their own, we see living proof that op-
portunity can be accessed by all, that what unites us as hu-
man beings is far greater than what divides us, and that peo-
ple from every part of this world can live together in peace. 
Thank you very much.  
hard into new markets and leveraging new technologies.
The result is evident in Asia where trade is growing rap-
idly. Export-focused economies elsewhere such as Germany
are also doing well. For those countries geared toward
trade, the future is bright.
What’s different with today’s boom in trade is that the
United States is no longer a magnet for goods. Now, in the
wake of the financial crisis, the pull is greatest in Asia and
emerging economies. With Globalization 4.0, the gravity of
trade has shifted.
The new competitive advantage of logistics
Another part of the story is logistics, which underpins
all global trade. By logistics, I’m referring to the art and sci-
ence of moving something exactly where it needs to be, ex-
actly when it needs to be there. Logistics done well means
that sellers more efficiently connect with buyers. And that
means more profitability and growth opportunities.
According to some estimates, the logistics industry
amounts to more than $3 trillion—similar to the economy
of Germany and much bigger than the $80 billion package
delivery industry.
UPS is a global leader in logistics, and at any moment our
business manages more than 2 percent of global GDP. We
are the only logistics provider with major capabilities in
North America, Europe, and Asia.
International business is increasingly important at UPS,
and I expect this trend will continue with new technologies
and processes for moving goods efficiently across borders.
In fact, logistics is the key to ensuring that global trade
continues to expand and thrive. And logistics is a rapidly
changing practice.
Under the old logistics, firms tended to develop capa-
bilities internally, and shipments often got bogged down in
paperwork as they moved through different networks and
across borders.
DAN BRUTTO
Under the new logistics, shipments are traced electroni-
cally, and businesses have clear transparency of product
movement. Large businesses can outsource logistics costs
and tap into a single global network. Small businesses can
compete in new markets with access to the same UPS plat-
form that moves goods to more than 200 countries.
New Logistics is a powerful tool that supports entrepre-
neurs, export growth, and global economic prosperity.
Not long ago I was in Vietnam, a country where new
ideas and technologies are spreading like wildfire. In Ha-
noi, the streets were buzzing with business people on mo-
torbikes, and you could sense the entrepreneurial spirit.
The business people I spoke with in Vietnam were hun-
gry for new global markets. And when I brought up logis-
tics, they were thrilled by the power of the technology in
the palm of their hand. They used their cell phones to do
most everything, not only to connect with customers but
also to clear paperless customs into new markets, or check
tracking shipments. Now, I can see why the UPS mobile app
is one of the most popular business tools on the iPhone.
Another example of how technology is lowering global
barriers is AliExpress. This China-based Web site matches
buyers and sellers in a global B-to-B marketplace with
wholesale prices. AliExpress is powered by UPS logistics,
which helps their customers compete globally.
Now, I don’t want to leave you with the impression that
trade barriers have disappeared. Global shipments are still
subject to changing anti-terrorism rules and trade require-
ments. But, along with our competitors, UPS provides free
risk assessment technology to international customs agen-
cies. In addition, we continue to develop our proprietary
technology for electronic customs and other ways to speed
global shipments.
With our extensive capabilities also comes responsibility.
In particular, I’m passionate about the power of logistics
to respond to natural disasters. For instance, earlier this
year, UPS brought the Salvation Army handheld Trackpad
technology to track relief supplies being distributed to vic-
tims at a camp in earthquake-ravaged Haiti. Also, UPS has
trained US employees as part of the UN’s Logistics Emer-
gency Teams to respond to disasters.
Our commitment to humanitarian relief is a growing
and important part of our vision to enable global com-
merce. And logistics is the critical link to meeting the needs
of the suffering.
Developing nations and trade
People everywhere want to build better lives, and in
more and more places prosperity means going global. The
rise of the middle class in a few large developing nations is
driving growth in trade. Every year, millions of new con-
sumers join the global economy.
Just this year, China recently replaced Japan as the #2
world economy. How? To begin with, the government
invested heavily in infrastructure and exporting. Entre-
513
preneurism was fostered, and the Chinese government set
manufacturing and trade at the heart of its political agenda.
To support this growth, UPS has its new intra-Asian air
hub in Shenzhen, China and is also continuing to invest
heavily in China’s logistics infrastructure.
Transportation infrastructure investment has been the
key to building manufacturing capacity and prosperity be-
yond the traditional trade centers. Much of China’s manu-
facturing is concentrated along its east coast. The govern-
ment is building new highways to open western provinces
to development and bring even more of China’s vast
population into the global economy. Contrast that with the
United States’ crumbling transportation infrastructure that
hasn’t seen a major influx of investment since the 1960s.
With our growing presence in Asia, UPS has a unique
window on China’s astonishing transformation. Our tracking
data show the value of goods leaving the country is up even
more than the volume. We’re seeing a shift from bulk freight
to more express packages containing high-value goods.
I’m optimistic about growth of inter-Asian trade as na-
tions like China and Taiwan set aside old political rivalries
to open up new avenues for economic engagement. I have
been impressed by the foresight and courage demonstrated
by several Asian nations as they build their export base and
act toward long-term economic growth.
Asia isn’t the only region that’s doing well with Global-
ization 4.0. Latin America has solid growth. The countries
I believe that have particular promise have at least 80 mil-
lion in population, export-driven economies, and are open
to global investment. These include what I might call the
new growth tigers of Turkey, Mexico, and Vietnam, which I
already mentioned.
Economic nationalism in developed countries
But as export-oriented nations drive more global
growth, other countries—especially in Western Europe and
North America—are pulling inward. With high unemploy-
ment and slow growth, major developed nations are threat-
ening to raise barriers to commerce. I would argue their
economies are suffering as a result of this sentiment toward
economic nationalism.
The United States is a case in point. Troubling signs of
protectionism include new tariffs on Chinese aluminum.
Such tax increases often provoke retaliation, hindering U.S.
exports, and increasing the risk of a trade war in which ev-
eryone loses.
Major U.S. trade agreements (South Korea, Columbia,
Panama) are stuck on the docket. A few industry-specific
disagreements (agriculture, cars) are blocking legislation
that would boost U.S. trade and growth.
I understand why some people feel threatened by global
competition, but I believe those fears are misguided. First
of all, many of the nations that fear trade are highly com-
petitive. Their workforces are productive, and they excel at
making high value products.
NOVEMBER 2010
514
Also, trade helps consumers through lower prices, and
it pushes domestic businesses to become more productive
and efficient. Trade also clears the way for new export re-
lated jobs. Every 22 packages that come into the U.S. from
overseas supports a job at UPS.
The bottom line is our country’s recent economic perfor-
mance has been poor, and one reason is lack of trade. More
specifically exports.
Jobs and exports in the U.S.
This past summer, UPS CEO Scott Davis joined the
President’s Export Council. He will lead the group’s export,
promotion, and advocacy committee and offer his views
on how the U.S. can revive its economy by selling more in
overseas markets.
This policy group strives to double exports within five
years and create two million jobs. This goal is ambitious,
but Scott and I believe it’s attainable.
For one thing, many businesses may not know about the
U.S. Commercial Service. This arm of the U.S. Commerce
Department provides valuable support to firms that are try-
ing to reach out and sell to customers in other countries.
I believe that many U.S. businesses that don’t export could be
The New Generation
“OPTIMISTIC ABOUT OUR COUNTRY … ABOUT OUR WORLD … ABOUT THE POWER OF POLITICS”
Address by ED MILIBAND, Labour Party leader, United Kingdom
Delivered at the Labour Party’s Annual Conference, Manchester, England, Sept. 28, 2010
C onference, I stand here today ready to lead: a new
generation now leading Labour.
Be in no doubt.
The new generation of Labour is different. Different at-
titudes, different ideas, different ways of doing politics.
Today I want to tell you who I am, what I believe and
how we are going to do the most important thing we have
to do - win back the trust of the country.
We all of us share a deep conviction which brought us
into this party and into this hall.
But each of us has our own individual story.
And I want to tell you about mine.
In 1940, my grandfather, with my Dad, climbed onto
one of the last boats out of Belgium.
They had to make a heart breaking decision – to leave
behind my grandmother and my father’s sister. They spent
the war in hiding, in a village sheltered by a brave local
farmer. Month after month, year upon year, they lived in
fear of the knock at the door.
At the same time, on the other side of Europe, my moth-
er, aged five, had seen Hitler’s army march into Poland.
She spent the war on the run sheltering in a convent
and then with a Catholic family that took her in. Her sister,
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VITAL SPEECHES OF THE DAY
successful in overseas markets. But first they have to overcome
their fear of the unknown, research and identify opportunities,
and then execute on a well-conceived strategy to go global.
Today, only one percent of U.S. small and medium
businesses export, and much of this activity is to just one
country: Canada. By contrast, more than half the small-to-
medium sized businesses in Germany sell to other markets.
Many UPS customers have increased revenue by exporting
to just one more country and then using that experience to
expand into other markets.
The U.S., with its many economic advantages, remains
the world’s largest market. Yet more and more shipments
are bypassing this country. That trend does not bode well,
but we can do something about it.
The most competitive nations of the future will pursue
trade agreements, build up their transportation infrastruc-
ture, and they will pursue innovative ways to boost exports.
In closing, let me say that I believe businesses that are
willing to push into new markets around the world will
find the conditions of Globalization 4.0 very much to their
liking. I expect that trade will continue to grow and spread
into new and surprising places and that the New Logistics
will go hand in hand with even stronger global growth.
her mother and her.
My love for this country comes from this story. Two
young people fled the darkness that had engulfed the Jews
across Europe and in Britain they found the light of liberty.
They arrived with nothing. This country gave them ev-
erything.
It gave them life and the things that make life worth liv-
ing: hope, friendship, opportunity and family.
And they took hope and opportunity. They worked
hard; they got on.
My Dad learnt English, paid his way moving furniture
during the day, and studying at night at technical college.
He joined the Navy to fight for our country and afterwards
he wanted to go to university. He did.
My Mum built a life here after the war, for all of us. I
know nobody more generous, nobody more kind, nobody
more loving and nobody more relieved that this is contest
is over, than my Mum.
The gift my parents gave to me and David are the things
I want for every child in this country. A secure and loving
home. Encouragement and the aspiration to succeed.
In those ways my family was just like every other. But in
some ways it was different.
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