7.11 Conclusion

Southwest Airlines captured the spirit—and possibilities—of modern transportation with its slogan, "You're now free to move about the country." But, we don't just move about our home country. Emirates Airways, Ryanair, and Singapore Airlines make it possible to see the world, broadening our horizons and enriching our lives. Now, that's pretty cool!

But, did you know, transportation is the great poverty slayer? Consider the lowly shipping container: Although only a 20 x 8 x 8 reusable steel box, the container changed world trade. Some analysts call the container one of the most revolutionary innovations of the 20th century.1 Jakob Stausholm, Chief Strategist at Maersk Line, explains, "Container shipping made globalization a reality." Today, container fleets transport 90% of world trade in manufactured goods.2 Modern transportation means companies really can design networks that utilize worldwide resources to meet global customers' needs. What does this mean for poverty? Two benefits stand out:

1. A Dollar a Day: Global trade is easing extreme poverty. Xavier Sala-i-Martin, Columbia University economist, noted that since 1970, "[The] percent of people living on a dollar a day or less—a traditional poverty measure—has fallen by 80%. This is the greatest antipoverty achievement in world history." 3

2. Discretionary Income: Global trade and the resulting economic and political stability are leading to economic convergence and the rise of a global middle class. Kishore Mahbubani, Dean of the Lee Kuan Yew School of Public Policy, observed, "In 1990, one billion human beings earned enough income to consider making discretionary purchases beyond mere necessity; by 2010, the figure had more than doubled." 4

Of course, managing for hyper efficiency and flexibility needed to make world trade possible and raise living standards isn't easy. But, changing the world for the better never is easy!