‘Coronavirus serious threat’

Islamabad: Coronavirus has become a serious threat to the globalisation as it has dramatically reduced the international flow of money, goods, and people, a business leader said Tuesday.

Coronavirus has compromised the circulatory system of the global economy by infecting the global supply chains that connect manufacturers and consumers, said Shahid Rasheed Butt, former President ICCI.

He said that nothing is safe from disruptions and many major companies are considering bringing back manufacturing facilities to their countries and seems less interested in economic integration.

Shahid Rasheed Butt said those who consider economic globalisation reason behind environmental degradation, climate change, conflicts and rising inequality are raising their voice with renewed vigour.

Global financial crisis, US-China trade war and now coronavirus outbreak has left many considering free trade a failed idea of the global elite commonly called Devos Elite, he added.

The UK has divorced the European Union which was a victory for economic nationalists as the global community has failed to establish new rules for comprehensive economic, environmental, education and healthcare problems.

He said that the global assembly line was already shifting away from China because of US tariffs but China could still come out as a winner, as it is no longer dependent on low-end manufacturing.

Realising US intentions, Beijing has started investing its surplus capital into higher value-added production, particularly in the digital sphere with less carbon footprint, he said.

The business leader said that corona virus has also helped China rediscover its dependence on the rest of the world which while Washington may think that a revived Cold War is unworkable.

It is time for a coordinated move that reduces pollution, tackle inequitably, and strengthen the global capacity to fight pandemic.