With the pandemic going on, there are a lot of things it has affected like the shattering of the economy, health shocks, deaths and dearth of necessities. let us understand what globalisation actually is.
Countries imposed widespread lockdown, movement restrictions on domestic and international level, transportation was stopped. International travel, migration, trade have been affected a lot.
It is a phenomenon that has defined the world economy in recent decades. The world is a global village and there’s an interconnectedness which has brought the world economies closer, penetrating borders.
It’s also an economic concept where trades, investments, market integrations happen, flow of products happen with few trade barriers. Culturally, it has brought people closer to where ideas and traditions are exchanged and acknowledged. The improvement in technology, internet, and exposure helped globalisation.
COVID-19 has worsened the situation. The world, as a global village, is suffering with its economy because of the disturbances in international trade, communication barriers, travel industry and tourism.
In the mobility and travel sector, the tourism industry has gone down. International travellers reduced to 56%. International flights also introduce trade and booms it further.
Data by World Trade Organization (WTO) for 2020 shows that there has been a 9.2% decline in world merchandise trade when compared to 2019. These alarming figures are testimony to the fact that many countries cannot meet demand and supply.
In India, there is a shortfall of trade because of COVID-19 related restrictions. Merchandise exports from India have reduced by 17.76% (April-November 2020). However, not everything is dismal; trade of medical goods has increased. With the manufacturing of COVID-19 vaccines, Indian pharma exports may cross $25 billion. (Source – The Hindu)
Globalization also affects cultural and social perspectives. Because face-to-face interactions weren’t possible, the internet became a place which was more active. The spread of news, documentaries, and releasing movies on OTT platforms became the order.
With that, misinformation also started spreading, as people were spending more time than usual. The business of Tik Tok, Instagram, twitter Zoom, Meet, etc boomed. Online learning enterprises also reached new levels because of the pandemic.
The government is focusing more on Atma Nirbhar Bharat Abhiyaan wherein India will have several reforms, policies and initiatives to promote business and foster its economy.
Reforms will be taken in the liberal market economy of the country to promote self-reliance while also being rational about Foreign Direct Investment.
There’s only one thing that the countries can do now to stabilize themselves from the loss. They have to be self dependent and self sufficient and not depend on just global supply chains.
They will need to invest in their country more and also bring in new opportunities from international business without being dependent.