KARACHI: President Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain expressed his apprehensions over the possibility of the coronavirus killing globalization.
After the 2008 global financial crisis the US-China trade war has shaken the foundations of globalization and the pandemic may be the last nail in the coffin of the free-market mantra, he said.
Mian Zahid Hussain said that the concept is getting unpopular among people, US is not ready to play its due role due to financial difficulties, other nations are not well-placed while China is ready to go to any extent to safeguard its interests which can shatter globalization.
He said that many countries have lifted or eased lockdown triggering economic activities but the movement of goods, services, immigrants, capital, services and flow of information may never gain pre-pandemic levels.
He said that the US is discouraging overseas investment and migration while it is pressuring companies to shift their manufacturing back to the US so that maximum number of Americans could get jobs.
EU, Japan and other countries are also following suit while India is trying to attract almost 1,000 US companies which may leave China. Resultantly, China has also cut investment in the US which will be reduced gradually.
The emerging scenario will make goods and services costly in the developed world while efforts of the developing nations to defeat poverty will get a blow.
Nationalism and protectionism will create a gulf between nations hitting at efforts to combat global problems. Many countries may allow trade and migration from only those nations where similar health protocols are followed which will be a doomsday situation for free trade.
Copyright Business Recorder, 2020
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