About pseudo-de-globalization, the silk street of world worth chains and the function of Georgia – OpEd – Eurasia Evaluate
The COVID-19 pandemic has had a significant impact on the world economy and global economic projects, including the Belt and Road Initiative, which brings together the 21st century maritime Silk Road and the Silk Road economic belt.
Limiting contact between people has proven to be an effective way of preventing the massive spread of the coronavirus. For this reason, many companies had to stop their activities, whereupon an economic crisis broke out worldwide.
The COVID-19 pandemic has practically exposed many of the accumulated problems of the globalization process. The COVID-19 pandemic in particular has led to a certain degree of skepticism and has put the question of how far the deglobalization process can go and, as a result, the possibility of isolating humanity on the agenda.
In summary, the experience with the beginning of the COVID-19 pandemic can be summarized that almost nobody in the world expected the rapid spread of the coronavirus, as a result of which not only nation states but also international organizations and above all the WHO were practically unprepared . The government of each country took certain measures on an individual basis. In particular, these measures were different in different countries: the harder ones were based on the announcement of a general quarantine and the mildest were restricted only by the recommendation to adhere to social distancing. Some governments have practically not taken harsh measures in the initial stages of the coronavirus spread, although they gradually introduced more restrictive measures as it continued to spread.
The de facto contradictory behavior of the leaderships of different states as well as the confusion of the WHO (especially in the initial phase of the pandemic) and other international organizations contributed to an increased skepticism about the objectivity of the globalization process, whereby the COVID-19 pandemic became a signal for the beginning the “globalization crisis” perceived.
Despite all the difficulties associated with the COVID-19 pandemic, it must not be forgotten that many components of globalization (e.g. the Internet) have already been created and are being used more actively around the world due to the pandemic. And above all, the pandemic as such, and the COVID-19 pandemic in particular, is also a global phenomenon. Only global measures can effectively counteract a global phenomenon.
Some of the isolationist measures taken by this or that government have been put in place to prevent the unimpeded spread of COVID-19 between countries and regions. At the same time, however, it must be remembered that isolationist policies have a negative impact not only on economic growth, but also on many areas, primarily the environment.
Obviously, in the context of the COVID-19 pandemic, the so-called process of “forced deglobalization” was provoked by the unexpected and rapid spread of the coronavirus, as a result of which the leadership of almost all countries acted in isolation in many cases.
Due to the global nature of the pandemic, it is fundamentally impossible to overcome under conditions of isolationism. The simple logic says that for success it is necessary to hold globally coordinated events in which international organizations and states should also actively participate. If the efforts of individual states to end the epidemic are of the utmost importance, then, in principle, overcoming the pandemic is not possible without the coordinated action of these states.
Even with the COVID-19 pandemic, there is no doubt that those countries that hinder free trade will end up suffering the hardest economically.
We can therefore assume that the deglobalization process is of a temporary nature; ie a pseudo-deglobalization is taking place. It follows that such deglobalization is temporary. It is therefore advisable for all countries to use the current situation to better prepare for the start of a new round of globalization; ie globalization at a higher level of development (https://www.project-syndicate.org/commentary/covid19-deglobalization-two-priorities-by-mohamed-a-el-erian-2020-05?utm_source=Project% 20Syndicate% 20Newsletter & utm_campaign = 3ce69c95d3-sunday_newsletter_17_05_2020 & utm_medium = email & utm_term = 0_73bad5b7d8-3ce69c95d3-93567601 & mc_cid = 3ce69c95d3 & mc_eid = aclog0fb).
In the context of a new round of globalization, the development of the Belt and Road Initiative as a project that is by its nature global plays a special role. Despite all the difficulties faced by this initiative, it was in particular its global nature that helped to find ways to overcome it. The most vivid example is the creation and successful functioning of its new branch within the economic belt of the Silk Road – the Health Silk Road, which was used as a corridor for medical care (delivery of medical devices and equipment, as well as drugs and vaccines) (https: // merics .org / en / short-analysis / chinas-health-silk-road-adapting-bri-pandemic-era-world).
Among the problems that have manifested themselves in the context of the economic crisis caused by the COVID-19 pandemic, the gap in global value chains stands out.
Obviously, in the process of the “renewal” of globalization, the question of the harmonization of global value chains becomes urgent, which can only be achieved by diversifying these chains. The diversification of global value chains should for their part take place through their “connection” to new countries and above all to those who have the most suitable starting positions for it.
In the context of the Silk Road economic belt, it is therefore necessary to develop another of its branches – the Silk Road of global value chains.
Georgia can play a special role in the context of the formation and development of the Silk Road of global value chains. Georgia is not only sandwiched between China in the east and the EU in the west, it is also the only country in the region that has free trade regimes at the same time as China and the EU. As is well known, such trade regulations only affect the added value that is predominantly created in the exporting country. And this factor could interest not only Chinese and European but also third country investors to “use” Georgia as a platform for the production of end products for export to the EU and China. In other words, Georgia has objective advantages of being “tied” to the renewed Silk Road format of global value chains.