SINGAPORE, May 8 (Xinhua) -- Rising anti-globalization sentiments pose a serious challenge in the wake of a global crisis like the COVID-19 outbreak and there needs to be strong cooperation between China and the United States, an economic expert has said in Singapore.
Gu Qingyang, an associate professor of the Lee Kuan Yew School of Public Policy at the National University of Singapore, told reporters on Thursday that the global economy is facing a serious challenge.
The global spread of the coronavirus has accelerated anti-globalization sentiments, especially in the United States, which may lead to a global recession, he warned.
Gu said that the rise of anti-globalization has surfaced over the years, especially after the 2008 global financial crisis, Brexit and rising protectionism shown by the United States. With the global economic fall-out caused by COVID-19, it has provided the "ammunition" to fuel another wave of anti-globalization.
Gu noted that while globalization has contributed significantly to global economic growth and technological process, it is also a double-edged sword. It can bring many problems, such as an uneven distribution of growth outcomes, cross-border crime, terrorism, cultural conflicts and the spread of infectious diseases.
But these issues need to be addressed through "appropriate global governance and global cooperation," he said.
In a country's economy, one cannot rely on the market system to allocate resources efficiently but on governance as well.
Similarly, with globalization, the formation of a global resource trading system, can enhance the goal of economic efficiency but it does not automatically guarantee equitable distribution of increased welfare.
An effective system of global governance is hence a necessary condition for the functioning of globalization.
Gu cited how coronavirus pandemic outbreak took place in an era of globalization, where people, information and resources flow through a market-oriented global system.
However, when a major infectious disease occurs and its enormous negative externality causes the market-oriented global trading system fail, there is an "urgent need" for a strong international governance body to step in, said Gu.
Unfortunately, effective global leadership and global collective action has not emerged from this crisis, he added.
For instance, The World Health Organization, as the coordinating body for global public health, has not had the support of some of the major powers to deal with such a major global public health crisis, said Gu.
Gu called the spread of this epidemic as a crisis of global governance, not a crisis of globalization" and that the aftermath of this lack of global governance has been "disastrous."
In fact, globalization has played a crucial role in the fight against the epidemic, said Gu.
The world has provided China with scarce medical supplies. Likewise, when the United States and Europe situation worsened, the international community, led by China, provided much support as well.
This process of mutual support therefore illustrates the importance of global production and supply chain systems in supporting global disasters, and in allowing for international aid to reach disaster areas quickly, said Gu.
Some might think that a shortage for medical emergency supplies like masks due to more demand is a problem caused by the global supply chain and that the future solution is to localize medical supplies, Gu said.
In times of crisis, however, the reality is that the principle of efficiency or timely supply of critical goods cannot be guaranteed.
"Because the probability of such rare public health emergencies occurring frequently is very small, we can't know in advance which country the crisis will occur," he said.
While political interference may affect globalization in the short term, globalization will not end, as long as enterprises seek to maximise profits, and consumers pursue their interests.
Hence, as globalization is inevitable, countries should make strengthening global governance their top priority, because globalization without global governance is "fragile and even dangerous," said Gu.
The world has undergone fundamental changes, with the growth of developing countries which still lack a voice on global governance.
As the power of the U.S. continues to wane, it cannot sustain its unipolar hegemony, and is further weakened by Trump administration's decision to pull out in many areas of global governance, said Gu.
The most important need now is for the world to form a multi-polar system of governance as soon as possible, he said.
This can be done through a reform of the existing governance system, as well as establishing new institutions. But either way, multilateralism and the participation of developing countries should be important elements, said Gu.
For this to happen, cooperation between the two major powers of China and the United States is essential to solve many of the existential crisis facing the world.
"Now is the best time for U.S.-China cooperation, and any attempt to decouple China and the United States cannot stand the test of a global crisis," said Gu.
Globalization should also not be confined to economic aspect, but include broader goals such as global health and safety, global environmental protection and global human development, said Gu. Enditem
