Impact of the Pandemic on Globalization
According to the Johns Hopkins Coronavirus Resource center, there have been 565,719 deaths and over 12 million confirmed cases as of July 12 due to Covid-19. The virus is not only affecting the health and well being of citizens around the world, it is also having a profound impact on economics, politics, and especially the role of globalization in the modern world. Prior to Covid-19, globalization was having significant challenges and setbacks due to its side effects involving immigration and low-skilled workers. The pandemic has accelerated those forces.
For the last 40 years globalization has been a driving force on the world stage. Many countries have become very wealthy in the last few decades due to the rise in globalization. The E.U has gained more power and control over the countries that are a part of it. A major part of this rise is the many free trade agreements that have been signed and implemented all over the world. There has never been a time in human history where more free trade has taken place. An example of this is NAFTA. Though NAFTA made some people very wealthy, it also left many people, especially in the Midwest, worse off than they were before. Those who held jobs in factories saw those jobs disappear for cheaper labor in places like Mexico and China. This phenomenon is called outsourcing and it left many workers in Western countries feeling disheartened with globalization and free trade agreements.
The process of globalization and hyper interconnectedness between countries has seen some pushback in recent years. Well before anyone knew of a virus named Covid-19, people were feeling that globalization may not be the best for their individual countries. One can see this sentiment expressed in many countries in North America, Europe, and even South America. The rise in populist parties has been an indicator that many people feel left out. These people, many of whom are in the working and middle class, have seen the wealthy get even richer from globalization while they struggle to pay their bills. Populist parties all over the Western World have been growing in strength and numbers for many years. The elections of Trump, Bolsonaro from Braziil, Viktor Orvban from Hungry, and Brexit show that many people are not onboard with globalization. There is a strong movement currently in Italy that is calling for a “Italexit” and Spain has a strong populist and nationalist party called Vox that is also anti-European Union.
Covid-19 is accelerating the resentment many people have to the rapid increase in globalization and it will likely slow it down and may even somewhat reverse it. In fact, many leaders are rethinking some parts of globalization that have gone too far. For example, politicians in the United States and many European countries are asking if they have become too dependent on international trade for essential products. Should ventilators, antibiotics, pharmaceuticals, and protective equipment be outsourced just because it is cheaper? Are these items are so important to national security that they should be made in the United States? As we are seeing now, when there is an economic crisis/pandemic, we become very vulnerable when essential items are made in other countries.
The shutdown over Covid-19 has caused massive unemployment in the Unites States and many other countries. This may not be the time for unchecked immigration and increased globalization. With so many problems, the United States may not be able to handle an influx in immigration while the U.S unemployment rate is at 11.1 percent. This pandemic has made many people rethink the free trade agreements and rise in globalization that has taken place in the last few decades. This is not to say that many good things haven’t happened due to globalization. In fact a huge amount of people have been taken out of poverty due to globalization. However, this Pandemic may cause a new shift and many countries will take back control over their trade, manufacturing, and borders in the coming years.
