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A Liberal View on the Affect of the COVID-19 Pandemic on Globalization

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A Liberal View on the Affect of the COVID-19 Pandemic on Globalization

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By Daniel Yermenko

Death or Dawn of Globalization?

It is not correct to say that the coronavirus failed because of the idea of ​​globalization, because the new pandemic that is sweeping the world has only shown how fragile the system of globalization is today. I believe that COVID-19 has in some cases even had a positive effect on globalization, because now the countries can recognize where they are vulnerable and correct their deficits.

The main problem that caused the collapse of globalization was the lack of alternative protection for production (Political Department for External Relations, 2021). When countries are dependent on the global trading system and thereby specialize in certain industries, they endanger the less focused industries, because if the trade channel is suddenly closed, the state has nowhere to draw resources that it cannot provide.

The only part of the index that shows an unprecedented collapse due to Covid-19 is the flow of people. Commerce has recovered strongly, capital flows have recovered, and digital information flows have increased. https://t.co/4CwQy0KgZ1

– The prepaid economy. (@prepaid_africa) August 2, 2021

In a world of globalization, states are closely linked, at least think the liberals. Countries must work together for common prosperity. After all, an economy that has reached the global level, for example, is a rather complex system of production, trade and finance and, accordingly, cannot do without cooperation. Based on these provisions, countries should not only work together to act with each other but also work together to fight the pandemic as this virus has spread around the world and is very costly for all countries. Countries must share their knowledge and technology to defeat the disease.

But that’s not what happened in the world. While the US tried to corner scarce medical supplies, the EU literally failed to coordinate its policies on the coronavirus, and worse, the US and China began to argue over who would be responsible. If we look at the sales strategies of masks, equipment, suits and medicines in different countries, we can understand that the “trade war” is still going on, which in turn means that globalization is out of the question.

Why? Unfortunately, being dependent on states does not mean that they cooperate. Just one example of the US imposing sanctions on China when it realized that the Chinese economy had grown too strong. After the sanctions were imposed, they were completely withheld from the materials they used in rocket science because China was the main supplier of these materials. States only cooperate when it comes to undermining interdependence and threatening survival, as was the case during the Cold War, for example. States prefer to negotiate and implement arms races and form alliances. However, COVID-19 poses no threat to national survival and is therefore not a sufficient reason for global cooperation.

However, people began to work together intellectually a long time ago, this is the phase of globalization that has never failed. People worked together to prevent an outbreak of the virus as early as the SARS virus outbreak in 2002 and also in 2012 when MERS emerged (SARS: A Pandemic Prevented, 2013). This case even led to the creation of a scientific network called the SARS Club. Back then, people avoided secrecy and competition, which led to breakthroughs in this area, but now states are also taking over science. For example, the collaboration between China and the United States could lead to great discoveries, but the feud between them has reduced resources to fight the virus. In these judgments too, realistic expectations have prevailed, as all cooperative action has been replaced by state priorities.

graduation

With regard to the effects of the coronavirus on globalization, the following facts can be summarized:

1) First, the world was not ready to give up globalization, and the system of globalization itself failed, causing a crisis in almost every country in the world.

As mentioned earlier, this does not mean that the world is giving up the idea of ​​globalization, but, on the contrary, is starting to use new methods of interaction on the world stage.

2) I believe that countries will start to reduce trade in vital goods and produce them themselves to build reserves for emergencies, or if they import these very vital goods they will also use them to accumulate.

I would like to believe that after the pandemic, or better still during the pandemic, a liberal attitude will play a role and that people will use globalization as an opportunity to exchange knowledge and, despite differences of opinion between states, make new discoveries together and raise the financial resources State support.

3) It is worth noting that Covid-19 has also had a major impact on people’s online shopping habits. I think people will now shop online more often, probably from other countries as well, which means globalization will stay in its place.

4) Perhaps liberal views will come to the fore and states will become more cooperative. After all, liberal principles consist of four imperatives: interdependence, transnationalism, growth of international institutions, and democracy.

Daniel Yermenko is Chief Marketing Officer at Global Transportation Service.

The views expressed in this article do not necessarily reflect those of Al Bawaba News.

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