One example worth mentioning is that IT exports now account for almost 40 per cent of India’s total export income. All in all, the percentage of manufactured goods in developing countries’ exports has increased from 20 per cent in 1980 to just over 70 per cent in 2001 (however, in Africa the figure is less than 30 per cent). In addition, ICT developments, which have enabled more efficient production in networks and at a distance, have led to new sectors in the service industries being opened to trade and international competition. An important element in this process is the increasingly strong cooperation between ICT, trade and efficiently-functioning product markets that allows labour-intensive stages of goods and services production to be moved to low-wage countries, and that emphasises how closely linked the various components of the globalisation process actually are. The effects of increased internationalisation on people’s daily lives I consider it particularly important to point out that although integration and technological developments entail large, and in many cases difficult, adjustments for individuals, they also have direct, positive effects on people’s daily lives. The percentage of people living in extreme poverty - with a daily income of less than USD 1 - fell from 40 per cent of the world population in 1981 to 21 per cent in 2001. In absolute terms, this is a reduction from 1.5 billion to 1.1 billion people. A large part of this improvement is due to the rapid growth in China and India.
However, a historical warning may be appropriate; experiences show that confidence in integration, the market and the open society can be rapidly undermined in the event of major economic crises and political instability. This happened in the First World War, which broke off the globalisation process of the time. Later, the spread of Communism after the Second World War forced the previously successful industrial nations in central Europe out of the international community. At present, the main threat to a free exchange perhaps stems from the risk of an escalation of terrorism leading to more closed borders. It is therefore important that we constantly explain why tendencies towards increased protectionism and introversion are not good for growth. Globalisation cannot be taken for granted - it must be defended. Future possibilities and challenges I now intend to look ahead to the possibilities and challenges that follow in the wake of the increased integration and technological changes. I have already mentioned the importance of safeguarding and developing the advances already made, and this cannot be stressed too much. Nor should we forget that macro stability, that is to say, price stability and sound public finances, is an important condition for stable growth. The Swedish experiences over the past decade are a very good example of this. A stable economic policy framework is particularly important in the light of the demographic challenges that will soon have a major effect on the economies of many countries, particularly in Europe.