Globalization Is A Symbol Of The 21st - amazonia.fiocruz.br

Theme, will: Globalization Is A Symbol Of The 21st

The open system of trade that had dominated the world economy for decades had been damaged by the financial crash and the Sino-American trade war.

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Now it is reeling from its third body-blow in a dozen years as lockdowns have sealed borders and disrupted commerce. The pandemic will politicise travel and migration and entrench a bias towards self-reliance. This inward-looking lurch will enfeeble the recovery, leave the economy vulnerable and spread geopolitical instability.

The world has had several epochs of integration, but the trading system that emerged in the s went further than O before. After Lehman Brothers collapsed in most banks and some multinational firms pulled back.

Since January a new wave of disruption has spread westward from Asia. Factory, shop and office closures have caused demand to tumble and prevented suppliers from reaching customers. The damage is not universal. But the overall effect is savage. The underlying anarchy of global governance is being exposed. Chaos and division at home have damaged its prestige. Around the world, public opinion is shifting away from globalisation. People have been disturbed to find that their health depends on a brawl Globalization Is A Symbol Of The 21st import protective equipment and on the migrant workers who work in care homes and harvest crops.

This is just the start. Although the flow of information is largely free outside China, the movement of people, Globalizatikn and capital is not. Consider people first.

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Other countries are likely to follow. Travel is restricted, limiting the scope to find work, inspect plants and drum up orders. The industry is signalling that the disruption to travel will be lasting. Airbus has cut production by a third and Emirates, a symbol of globalisation, expects no recovery until Trade will suffer as countries abandon the idea that firms and goods are treated equally regardless of where they come from. Governments and central banks are asking taxpayers to underwrite national firms through their stimulus packages, creating a huge and ongoing incentive to favour them.

And the push to bring supply chains back home in the name of resilience is accelerating. America is urging Intel to build plants at home. Digital trade is thriving but its scale is still modest. The sales abroad of Amazon, Apple, Facebook and Microsoft are equivalent to just 1. The flow of capital is also suffering, as long-term investment sinks. Multinational firms may cut their cross-border investment by a third this year.

As governments try to pay down their new debts by taxing firms and investors, some countries may be tempted to further restrict the flow of capital across borders.

Poorer countries will find it harder to catch up and, in the rich world, life will be more expensive and less free. The way to make supply chains more resilient is not to domesticate them, which concentrates risk and forfeits economies of scale, but to diversify them.]