How the Pandemic Made the World More Self-Sufficient

By: Kaydee Ambas · December 11, 2023 · Reading Time: 2 minutes

Breaking Foreign Dependence

Let’s talk about how the pandemic has changed the world and made it more self-sufficient. For years, globalization was the name of the game, with countries relying heavily on each other for financial markets, supply chains, and more. But then, boom! The pandemic hit, and everything went haywire.

The global economy took a massive hit as supply chain issues caused chaos. Suddenly, countries realized just how much they depended on others to provide goods and services to their own citizens. It was a wake-up call, to say the least.

Avoiding the Same Mistakes

Now that we’re recovering from the pandemic, countries are determined to be less reliant on each other. They want to avoid getting caught in the same mess if another crisis hits. The new trend is regionalization, where countries within a smaller, geopolitically aligned group work together more closely. This way, supply chains are less exposed to international conflicts or crises. Sounds like a good plan, right?

But hold on, the International Monetary Fund has a word of caution. They’re worried that this shift toward regionalization might make the global economy less resilient. It’s a valid concern, and only time will tell if it’s true. For now, the global economy has been surprising economists by performing better than expected.

The New Norm

To make this self-sufficiency dream a reality, governments are investing big bucks into new technology. Take the United States, for example. They, along with their allies like the European Union and Japan, have put strict limits on semiconductor exports to China. Instead, they’re pouring billions into developing their own chips domestically. Will this make the global economy more fragile? We’ll have to wait and see.

The pandemic has shaken things up and made countries rethink their dependence on others. It’s a delicate balance between self-sufficiency and global resilience. Let’s hope we find the right path forward.

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