There's Still Hope
Globalization is the integration of markets and investments around the world on an economic level. This began in the late 19th century and has continued to grow and develop until coronavirus hit. Since the pandemic arose in 2020, these trade markets have plummeted and have yet to return to normal. With the amount countries relying on trade with each other for their economy, it’s not hard to assume that globalization will reach the levels it was at once and possibly even peak above that. However, many are contemplating that globalization was in a decline before this and that this type of human crisis will haunt the markets forever. Although this is one of the few human experiences we’ve had like this, it happened before in our past (such as the Great Depression of 1929 and the 2008 Financial Crisis) is leaving foreign investors worried about their next project. Recovering from something of this magnitude involving the economy will take a while to recover, but without our markets, we won’t be able to function globally, especially in the poorer countries.
A major contributor to our economies yearly is the volume of tourists internationally. Obviously, in the midst of this pandemic traveling has not been recommended, and in fact, in many countries, it was or still is not permitted. The reason for a major hit to globalization was the lack of integration; there were 1 billion fewer global travel entries in 2020 than in 2019. As David Faris says in his article in The Week,” Did the Pandemic End Globalization”, “Tourism was an enormous economic force before the pandemic…that has cost at least $1.3 trillion in export revenue and could lead to as many as 120 million tourism job losses.” COVID-19 has not only affected those who travel worldwide, but also the people and countries that rely on tourism for a living. With 120 million tourism jobs being vacated it creates a hole in the economy and the status of these countries will be driven through the dirt. The tourism-dependent countries are devastated by this pandemic and even more so when they are struggling to acquire a sufficient amount of vaccines for their people.
The worldwide supply chains between all these countries were halted by the pandemic which certainly created a crisis. People didn’t realize how much they rely on each other for services and exportations. This puts the countries with lower income at a much lower chance to survive. Since the pandemic put an end to trading, for the time being, these countries have become independent. Places like the United States don’t have to worry so much about coronavirus because they have the resources to function independently. However, the smaller countries that rely on imports and exports are facing the more extreme consequences of this pandemic. In The Week’s article, Faris said,” Wealthy countries are on the verge of a euphoric release, as Covid-19 vaccine distributions ramp up. But the rest of the world is starting at a potentially years-long effort to inoculate citizens.” The richer countries are holding onto these resources while the smaller nations are left straggling for seconds. Without tourism available because of the pandemic, these smaller countries are stuck with a lack of independence. They are not able to create for themselves and hold an economy up with the supply chains that COVID-19 took. The smaller countries have closed up borders and integration because of the lack of resources coming through while trying to keep their citizens healthy. These countries are in the midst of an “every man for itself” and the resources/wealth will predicate how far these countries can survive of international independence. Globalization has become extinct since the start of the pandemic, however, the countries are built of supply chains therefore the second era of globalization is bound.
What the pandemic has brought on is a lot more significant than pausing globalization, which is major. Countries will now not be as dependent on other nations for goods and services, but rather create foundations to produce their own. Global investors now understand the risks and what would happen to the economy in sake of another human crisis. Travel and tourism will not be the same for years to come as regulations differ from country to border and the fact that not everyone will be vaccinated will haunt some travelers. But for all we know, the world will continue to spin and everything will return to normal over time. It’s challenging to recover from a natural disaster such as Covid-19 but because the economy was once booming after many financial crises it will happen again. In the article,” Did the Pandemic End Globalization?” Faris states,” Yes, you will get your life back, and soon. But the post-COVID world might be a bit more insular and less integrated than the one that came before.” The poorer countries are still not getting enough vaccines for their population and thus there will be a delay to normalcy once again in our world. Full immunization worldwide won’t happen until sometime near 2023. Like the many examples of the economy rocket shipping through the ground, the economy has always built itself back up and better than before. Economic integration might be lacking as we begin to immunize towards Coronavirus, but with the needs of each country, the hope is there. Countries will begin focusing more so on international independence and their own supply chains versus worldwide to prevent such a drastic measure ever again for this type of crisis.
Countries will now rely on more of an isolated economy for their own goods and services. Globalization might be vanished for now but as soon as the immunizations are more mobilized worldwide the economy will be booming once again. It’s not the first time globalization has faced a hardship like this and, most likely, won’t be the last. With borders and supply chains being shut down for the pandemic it makes sense everyone would go into a frenzy however the economy is just in quarantine for a little while, not a lifetime.
