Globalisation is something that has been with us every day for the last few decades. The world has gradually become more connected, making life easier for many people. However, it has been known from the beginning that globalisation has its downsides, which became apparent during the recent pandemic. So where is the world going from here? Let’s take a look.
Bumps for globalisation
With the advent of the pandemic, there were huge issues regarding the global supply chains. Factories were locked down or at least understaffed, imports in many cases were incredibly difficult, if not impossible and prices for everything imaginable went up. As the pandemic began to recede and things looked better, the war in Ukraine began. Individual countries started to impose sanctions on Russia and globalisation took a huge blow again. Among other topics, this was also the subject of discussion in Davos, Switzerland, which was hosting the traditional World Economic Forum (WEF) recently.
According to economic experts, the opposite of globalisation is currently taking place – fragmentation. Some countries have started to protect their domestic markets and have reduced or baned exports of strategic sources, which are very important for other countries. An example of this behaviour is India, which has reduced its exports of wheat in order to have food mainly for its own people. For this reason, food and other things are also becoming more expensive and it can be expected that prices will rise higher and higher also due to rising oil prices. Oil is not necessary only for transportation, but also for fertilizers.
So what could be happening?
Takeda’s Christophe Weber, CEO of Asia’s largest pharmaceutical firm, said that, “It would be premature to say that the end of globalisation has come. But the fact is that globalisation as we know it no longer exists.” It is therefore possible to expect in the future that countries will slowly begin to move away from globalisation and attempt to create more self-sufficient economies.
What can you do?
It is a good idea to support small local farmers, businesses and companies and also to have at least part of your assets not dependent upon the global payment system. Such an opportunity is provided for example by Platon Life and its ecosystem, where you can do both. Support local companies but keep global access to your assets.