Why COVID-19 shows the future not the end of globalisation
I’ve long been a strong advocate of globalisation but, in 2020, even my own convictions have been momentarily challenged. A virus that knows no borders has “pecked away” at the foundations of the way we live and the way we trade. How long will governments keep borders sealed? Will these physical borders evolve into trade borders and will more governments try to keep the outputs of trade within their own borders? Shortages in vital provisions – such as personal protective equipment and ventilators – have precipitated calls for change. We’ve heard voices demanding a return to domestic manufacturing and the renationalisation of critical industries. We have heard it all. The idea that firms and their products should be treated equally regardless of where they come from is in peril. If these and other thoughts proliferate, trade will cease to flow freely. Countries will become less connected and the cornerstones of the commercial world we’ve become accustomed to will begin to creak and crack. Is this the end of globalization as we know it? Opportunities in disguise I, for one, am not convinced. This pandemic has shown us that global connectedness is in fact not the problem, but the solution. It is simply amazing how quickly the world has adapted to a new way of being. To a large extent, societies have managed to maintain normal life because goods have been delivered to our doorstep. We’ve kept in touch with friends, family and work through digital connections. Thanks to global collaboration, we’re getting closer to finding effective treatments and vaccines for this virus. Adaptable supply chains and access to the global market are helping us soften the economic impact. The benefits of a connected world are visible everywhere. We’ve witnessed huge growth in cross-border e-commerce. Many companies with a global reach […]