The world economy in 2010 and the revolution of services

Abstract

This paper analyses the impacts of ongoing technological innovations (particularly,
in microelectronics) on the future of the world economy. The author argues that
service-intensive activities will become increasingly important, and the world economy will
reach “network characteristics “, with a much higher degree of interdependence than ever.
The technical feasibility of worldwide integration, however, will not necessarily translate
itself into economic integration given the resistance of nationalist and protectionist forces.
And the disarray of the international financial system will tend to foster these forces. Against
this background, the options for Brazil vis-à-vis the worldwide integration process are also
discussed.

JEL Classification: F02; L80.