Alainah Amer
Recent trends are expecting the global economy to move away from interdependence between nations to weaker interconnectivity, localised policies, and enhanced border controls, a phenomenon also referred to as ‘de-globalisation’. With the catastrophic impact of the global financial crisis, the rise of protectionism, exemplified by the US and China engaging in a trade war, and the implementation of Brexit, there are widespread concerns amongst economists that de-globalisation is a force that is here to stay. COVID-19 has further exacerbated these concerns. The ongoing pandemic has uncovered the vulnerable roots of globalisation illustrated by a sharp fall in global GDP, plunging levels in international trade, the decline of foreign direct investment, the vast disruptions of global value chains and lastly, higher unemployment rates. These trajectories seem to prove that globalisation comes with severe risks – which have the tendency to spread like wildfire. This begs the question of whether globalisation might actually be a ‘bad’ thing.
Continue reading “Are we living in a world of de-globalisation? ”