GGP | Global Governance
Policy Brief No. 202012
April 27, 2020
本文已发表于China Daily | April 24, 2020
Series on #Global Health Governance# No. 7
Pandemic undermining pillars of globalization
Chen Zhaoyuan
If not handled properly, the crisis will wipe out the achievements of globalization and fuel anti-globalization sentiment.
The COVID-19 pandemic has had a huge impact on economic globalization, how long the impact will persist remains to be seen. According to statistics released by the World Trade Organization, the global import and export volume dropped by around 10 percent in February, year-on-year, and the merchandise trade volume for 2020 is forecast to fall by 13 to 32 percentage points. Foreign direct investment is projected to decline by 5 to 15 percent this year, according to estimate by the United Nations Conference on Trade and Development. In addition, the pandemic has led to breaches of contract in some investment programs, with many projects canceled or at risk of being canceled. Also the travel restrictions imposed by many countries to stop the virus from spreading have had negative effects on the flow of people and tourism industry. In a word, the three pillars of economic globalization, namely the flow of goods, capital and people, have all slowed down or even reversed due to the pandemic.
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