Introduction
The focus on globalization is one of the dominant movements on a global scale, affecting decision-making concerning state-specific policies. While globalization has been changing the transnational political, economic, and social landscapes, a significant adverse factor has undermined the core of the principles on which globalization was based.1 Specifically, COVID-19 has outlined the weaknesses that global expansion and erasure of economic and sociocultural boundaries suggested, creating an enormous threat to people.2 Hence, the advantages of protectionism as the effort to keep some limitations intact have become apparent.3 The dilemma between the focus on global cooperation and the resulting progress has been challenging. Despite the significant gaps that the pandemic has revealed in the fabric of globalization, the latter still needs to be encouraged. At the same time, enhanced risk management strategies should be integrated into the global international relations policies. This paper is aimed at a thoughtful and constructive assessment of the shortcomings of the globalization process, taking into account current trends, an analysis of the degree of impact and impact of the pandemic on the idea of protectionism, and substantiation of views and assumptions about steps towards protectionism after the pandemic.
Drawbacks of Globalization
Primarily, the author should note that the coronavirus pandemic is one of the most common general social problems, making it possible to identify and expose globalization’s shortcomings, weaknesses, flaws, and imperfections to the most vivid extent. Thus, for instance, among the prominent negative aspects of globalization in the context of the international situation, it is essential to highlight the increase in unemployment and the decline of several industries, the monopolization of the economy, the growth of speculative operations, the widening gap between the leading and developing countries, and much more. The unexpected global outbreak of the previously unknown disease has made evident the unacceptable dependence of many states on foreign goods and resources. In particular, the acute trade war between the United States and China, which has been developing since the beginning of 2018, can be cited as an example of this phenomenon.
The severe epidemiological threat hypothetically blocked the international supply of vital goods, creating troubles at the micro, meso, and macro levels with all the ensuing consequences. In such conditions, purely economic calculation in the construction of national economies begins to give way to the need to ensure individual states’ viability and independence from external shocks. It is obvious that many countries will make serious efforts in this direction in the coming years.
The Impact of the Pandemic on Protectionism
The goal of trade protectionism is to safeguard a country’s crucial economic objectives, including its lucrative markets, goods, and employment opportunities. While the impact of the pandemic on both local and foreign markets has been significant, it proves that the idea of protectionism, if applied to the situation in the United States, can be beneficial for the domestic businesses. First, it is worth mentioning that during the global pandemic, supply chains were disrupted, and the import of many goods was impeded. Such damage can affect the nation’s importation problems, which can result in significant losses in the GDP of several states.4 Nevertheless, while protectionism regulations lower the level of imports, they create more opportunities for the growth of smaller domestic manufacturing businesses and boost the trade balance.
Moreover, protectionism policies provide opportunities to other industries by creating more demand for services. For example, during Covid-19, hospitals and medical professionals have had to deal with serious financial consequences as a result of the pandemic outbreaks5. The majority of hospitals faced financial challenges due to bed scarcity6. In order to address the challenges, healthcare institutions needed quick infusions of public funding to buy equipment, pay the premium, and establish temporary facilities7. As a result, it could be profitable for construction sector due to an increased demand for more healthcare facilities.
Lastly, the objective of protectionism is to provide citizens with more jobs as well. For instance, global pandemic caused reduction in demand for international travelling. Most nations have implemented restrictions during the pandemic outbreak to keep the infection under control and prevent viral spread8. Due to a sharp rise in flight cancellations and a sizable decline in demand, it also makes international airline travel more difficult. For instance, April 2020 data shows that compared to 2019, there were approximately 80% fewer flights worldwide and more than 90% fewer flights in Europe9. While it was damaging for airline industries, they were supported by the government initiatives. On the other hand, domestic travelling and e-travelling industries have surged, providing more position due to a higher demand for services.
As a result, Covid-19 has increased the persuasiveness of protectionism. While the idea of protectionism lies within the protection of the domestic markets, it also provides more opportunities for local businesses, lowers imports that create competition for domestic companies, and provides citizens with more jobs. Aside from such obvious points, the aforementioned advantages allow protectionism to increase the GDP of the country and lower the risks that stem from free trade with foreign markets.
Conclusions and Thoughts
Summarizing the facts and details mentioned earlier, it is essential to note that there is currently insufficient accurate, reliable, and objective information regarding the extension and continuation of steps towards protectionism after the coronavirus pandemic. Nonetheless, according to the student’s opinions and assumptions, there is a considerable probability that multiple states, countries, and regions, especially developing ones, will adhere to the policy regarding import restrictions and support for domestic producers. Hence, well-chosen methods, tactics, and strategies on the part of authorities, improved through the active use and processing of global data to create viable and accurate forecasts, are recommended to be further integrated into the development of this approach. Without any doubt, a set of such financial, organizational and legal measures will be able to raise a country’s defining economic indicators and social parameters, create new jobs and increase the employment of citizens, and, most notably, mitigate adverse effects, minimize potential monetary risks and shocks while remaining afloat. In addition, the idea of protectionism reinforces the domestic economy in the given situation by creating more opportunities and jobs.
At the same time, it would also be wrong to talk about the irrevocable decline of the era of globalization and the pronounced development of the concept of protectionism in several countries. Quite objective macroeconomic factors dictate this long-term trend. At the same time, this lively developing process cannot do without obvious shortcomings and distortions. It should be assumed that the current weakening of the trend towards globalization of the world economy is only temporary. In the following years, this process will be a resumption in a modified form. The current level of information technology and logistics development makes this process almost inevitable.
Reference List
Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
Footnotes
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.
- Thi My Hanh, L., et al., ‘Exploring the Impact of Pandemic on Global Economy: Perspective from Literature Review’, Pertanika Journal of Social Sciences & Humanities, vol. 29, no. 3, 2021, pp. 2033-2087.