The pandemic has ushered in new trade restrictions and calls for new measures to cut dependency on imports. A common phrase among leaders in Europe, America and Asia is that “we’ve been naïve” and that societal resilience is reduced by allowing firms to globalize supply and value chains. For many politicians, it is now the time to re-shore manufacturing and bring critical supplies back home. We disagree with this approach.
In our “New Globalization” project, we will take stock of trade and global dependencies – predominantly in Europe – and point to the critical role of economic openness for restarting the global economy. We aim to demonstrate that international trade isn’t just about the economy: yes, free trade leads to prosperity, but it also makes societies more resilient.
We will show that globalization is changing. If “old globalization” was about goods and standard services crossing borders, “new globalization” is about rapid economic integration through a digital exchange, technology, innovation and the organizational imitation – essentially, the globalization of ideas and knowledge. While old globalization is in retreat, new globalization is growing – fast!