More on Globalization – Covid and its effects
by Marina Tanase
[Follow-up to popular earlier post by Marina Tanase, The Real Story of Globalization.]
Here I am …- me again. I find myself writing one more time about globalization. My interest in this challenging topic dates back to 2014. It all started with a passion to connect with others not just locally, but also globally, as I consider myself a traveller and avid learner.
Years ago when I was in my 20’s, I participated along with my sister in a summer school in Bulgaria, where I met great people whom I immediately connected with. It was at that time that a very interesting book written by Thomas Larsson (a Swedish journalist), called: “The Real Story of Globalization”, fell into my hands. I flipped through the book, and suddenly I was caught up into it. It was the exact concept I was looking for and eager to explore more: “interact with others from all over the world”. At that time I did not know how to define the idea, but Thomas Larsson described it for me perfectly.
The theory I was interested in learning more about was called globalization: “The process in which everyone gets closer, (and) can interact with others from all over the world”. The book had such appealing content, followed by so many real examples, that it was hard for me to leave it aside on my desk and not continue reading it.
I was passionate about the topic, desiring to learn more about the historic events that led to the development of this particular concept. I was eager to read examples of people connecting to each other through creative methods in order to be able to share ideas; and exchange goods and services.
Globalization could be described as the freedom of exchanges with no borders, whether we were looking at capital, technologies or human beings. As someone coming from a former Communist country, that “freedom” of trade with no barriers caught my attention. We were all aspiring to that idea, the idea of “freedom.”
After finishing the book, I was inspired with a desire to write an article on this topic. I wanted to write a review, an opinion, something that could be shared with others and lead to some debate. The result was that I wrote an article which happened to capture the interest of many readers in the following years.
This is the reason I decided to give it a twist and come back to it. Only now it was the famous year 2020: the historical moment in humankind that marked and challenged us under so many aspects and levels.
The challenges all nations were encountering in 2020 due to Covid caused me to reflect on how this virus will impact our economies. I instantly related back to my article on globalization. What will happen? Would globalization disappear or expand? Or maybe it will transform? Or perhaps it will only exist for rich countries, leaving behind the poorer developing countries?
Witnessing the quick transformation of technology and observing how artificial intelligence takes over our lives, whether at a personal or professional level I wondered to myself if this powerful tool called “technology” will bring change to not just tangible things, but also feelings, emotions, and concepts.
There it was: “change of a concept, change of our traditional definition of globalization”. So many question marks were spinning into my head, and I felt the urge to go back to the article I wrote back in 2014. And there it was, a key phrase which the author, Thomas Larsson, pointed out years ago in his book.
“Globalization nowadays is facilitated through”’information and technology.” A few years ago, a business lasted weeks, months, but now it can last only a few minutes”, Larsson said. I read the phrase and reread it, and I decided to go deeper into the concept, and this is how the idea arose: “How will Covid affect globalization? Will that even be globalization anymore? Will we be forced to create the new definition of globalization?
I decided to take this time on my computer, not the pencil; (which we are leaving behind in this new age of technology), and write an updated article, for I wanted along with society to adapt to the real world.
When it comes to writing this article, I have to admit that it took me some time to do the research, but what I am calling for is a reflection with your own thoughts and your own definition of globalization, as you would describe it. After some research, I noticed that there are different opinions out there on this topic.
Some think that globalization will end due to this pandemic. The believers of this concept start from its definition: “gGlobalization was born to ensure the economic and cultural growth of individuals.”. This was was possible due to the modernization of transportation where people had the chance to travel, and exchange goods, services, and ideas.
When the virus hit, “travel and trade” (which were the main components of globalization) were seen as the principal contributors to the spread of the virus.
During the pandemic we were and still are spectators of how countries were mobilizing themselves to gather actions and plans in order to combat the quick spread of the virus. Every country had its own rules, including banning travelling, in-person work, and in-person meetings and events. The implementation of the rules and policies did not come easy and they made an impact on the economies; thus, by the end of the year we were facing recessions and a drop down in the economic stability.
A pandemic can affect the economy in terms of decelerating the economic growth of the countries, which leads to reduction in trade and increase in poverty. The lockdown measures have increased telework and cancelled operations contributing to the restriction of the supply and demand. So, what is the impact of the virus on globalization in terms of:
– Mobility and travel?
– Economy and workforce?
– Health capacity?
– Vulnerability?
The partisans of the theory who consider that “globalization will end due to the pandemic” are looking only at the traditional definition of them. They argue that because the long lockdowns and travelling bans of goods, services, and people come to a stop, therefore globalization will eventually disappear.
Industries such as transportation, tourism, services, and hospitality suffered an increased decline.
But we should not forget that there were and still are other industries who benefited from the virus, such as technology and marketing, to name a few.
Some others think that the pandemic will expand globalization, but not in the traditional way we all knew it. The concept will change and adapt as our mindset changes and adapts.
The believers of this theory argue that “globalization will shape into the flow of ideas and solutions, if not necessarily products.” They believe that the advance in technology will bring people closer, in a more effective and quicker way than before.
Let’s take the example of the conferences/events that used to be organized in the workforce. Due to the rapid growth of artificial intelligence, people are able to connect from all over the world in a span of minutes and from the comfort of their own home. The costs diminished as there was no need for transportation and accommodation arrangements. Online platforms can bring thousands of people together where ideas can flow and bring new business perspectives into place.
Let’s look at another example. How about the service sector, such as retail, as they were one of the main actors which were hardly impacted by the virus? The power of technologies gave the opportunity to the companies to transform and move all their products to be sold online. We can see that goods and services can still travel, not in the traditional way, but rather in a modern way using an online platform.
So, why is globalization so important?
I would dare to answer that it allows businesses to find solutions to lower cost in order to produce their products and services. It allows global competition to increase, which has a domino effect in driving the prices down and creating a larger variety of choices for consumers. By lowering the costs, it will help people in both developing and developed countries to live a better life with less need for money.
As I mentioned at the beginning of the article, I am calling upon reflection and debate.
Isn’t that what this pandemic brought us? We all tried to find ways to connect, to keep doing and growing businesses, to stay in touch and even travel with the power of technology. Costs were diminished, as we-see in the examples above, and productivity was increased.
But were we all able to adapt to this rapid and challenging situation we were confronted with? Were governments prepared to move most of the services online, and were the people and businesses ready mentally and financially to work and connect remotely?
Technology is not free, but comes with a cost. Countries needed a strong economic system and infrastructure, so new online systems and platforms could be implemented. And we were all witnesses of the fact that the world was not prepared for this.
Let us not forget that there are countries and continents whose system allows for complex technologies to be implemented, but there are some such as Africa, for example, which are facing big challenges. In underdeveloped countries, governments are still struggling to provide basic needs such as potable water or food. Access to technology is impossible as internet access is being seen as an unnafordable a luxury. What is going to happen with these countries? How would globalization be affected? Would globalization even exist?
Adaptation, open minds, and flexibility is what is all about. These are the key points the virus taught us, whether we look into a concept, a skill, or our own mindset. Companies, governments, and individuals who have the power and a stable economy will see globalization through the lenses of technology. The free movement of people, goods, and services will have to adapt and take another form; the – online so that globalization can still survive.
But I would still like to leave you, dear reader, with a few open questions that call for a debate:
What about the poor countries? How will they face the shift in globalization? Will globalization die for them or take another shape? Will we witness a division of poor and rich countries?
I will leave you, dear friend, with this thought, as meanwhile I myself will continue to ponder it.
Marina Tanase, originally from Romania, earned a graduate degree in Malaga, Spain before moving to Calgary, Canada and then to Vancouver, BC. Ms. Tanase has degrees in Environmental and Natural Resource Law and in Business Administration and has worked in legal services, tourism, and education.