Morning Knowledge /8. Networks

When globalization takes off, it does so very fast, as new global links allow the creation of still more new links and so on. Globalization feeds on itself, says Fernando Vega Redondo. Another result of his research may be less expected: a well-rooted local network is a necessary prerequisite for globalization.

As new connections are formed through existing ones, too much local cohesion (i.e too many inward-looking links) can be detrimental to globalization. For, in this case, the partners/friends of your partners tend to be already partners and hence they do not open new opportunities. But, in a crucial sense, some cohesion is also needed for globalization to take off, because in economic relationships trust is key in the formation of new links and trust only develops if those new links are well supported by pre-existing relationships. Thus, a sufficient degree of cohesiveness is needed for the network to expand early on and eventually become truly global.