Globalization rethink

The novel coronavirus global pandemic not only hits the world on the health aspect but also imposed a profound impact on the world economy as well. As and when the virus situation subsides (hopefully it will) there will be a host of topics that the world must look into it so many people said our world is going to be a different one after the pandemic. Among the list of topics, one most talked about is the future development of the existing globalization setting.

Some people said the once flourish globalization is nearly destroyed overnight along with the onset of the outbreak. Alongside the lockdowns and shutdown on the national borders on many nations across the major continents human traffic, especially cross-border, literally came to a complete halt. Cargo traffic is equally hit as well because when lockdowns on cities as well as on some nations kicked in the production is unavoidably severely impacted. Globalization means production of all the parts within a product scattered throughout different countries, if not continents. The Domino effect further hammers the normal operation in production when one or some imported parts is out of stock due to the lockdowns. This is particularly true for those enterprises who practice JIT (Just in Time) inventory system. The world suddenly realizes that how fragile the existing system is so people can't help but just question whether we should keep the existing system running.

Naturally the concern on the stability issue arising from the logistic problem is quite valid. The view is rather monotone though. The argument rests mainly on economic which focuses on the disruption on production and the economic losses arising from it. Despite there are also some western countries have political concern that some strategic essentials which are now produced overseas. This raises the concern up to the national security level when supplies are interrupted just like what has happened on the face masks. Naturally it is almost for sure that governments around the world will raise an agenda for the procurement on such strategic essentials but after all, these items are just a very small fraction of the total world trade volume so the retreat of these items from the world trade will not pose a significant impact on the globalization status.

Perhaps before we go further on the assessment on the survival of globalization, a look back on how the globalization is born can help. Most people see globalization a rather modern thing meaning it happened quite lately. Many people relate it to the industrialization and the modern management theory of labour division. It is true that only after the industrial revolution that production mode changed from manually to inception of machinery so efficiency was gradually increased and so was the output. As the technologies advanced over time but not all countries progressed in the same pace and the same direction, some countries outperformed others in the production of some particular products so labour division emerged among nations and that was the background of the birth of globalization.

Nevertheless, industrialization and labour division just provided a breeding ground of globalization but they do not necessarily cultivate it without a key drive. There must be someone giving them a big push to facilitate the onset of globalization. In fact industrialization and labour division were something very revolutionary by themselves at their birth but they were just the means of the underlying end, ie., profit maximization. By the employment of sophisticated production technologies and having the products made in a low costs country yields the highest profit. Profit maximization is the ultimate goal, or the single goal, if a business must choose from. Yet this is the economic drive only.

In the earlier paragraph I mentioned that most people think that globalization is a rather contemporary concept but in fact perhaps it happened as earlier as in the heyday of the British Empire who was once described as the empire on which sun never sets. The Empire earned this title because she once had colonies where the sun would always shine on one of her colonies. She owned so many colonies not for fun but for profit maximization. People should remember that the Empire was the birthplace of the industrial revolution so she had the most state of the art machinery at that time. The Empire needed a great deal of raw materials for her production as well as a big market to dump her products made by the machinery. Naturally she did not have enough natural resources from her own soil of three islands only so the Royal Navy conquered those colonies which fed the Empire's appetite. On the other hand, the warships also opened up the market for her products in different continents. This is the globalization in true sense.

After the WII, the U.S. succeeded in replacing her mother to be an empire. "American Empire" exists in another form that it basically does not own colony but through its strong military muscle and the U.S. Dollar landscape the "Empire" has been ruling the world with even more (economic) colonies than her mother. Therefore the U.S. was, till this late decade, an hard core fan of globalization. People have heard her solid support on the globalization as well as free world trade over the past decades because these two advocates are the nutcracker on opening up the world market on the natural resources supplies as well as product export. Things started to change only when Trump became the president of the U.S. because he holds different view from the multiple super super wealthy families whom are the beneficiaries of the U.S.'s globalization policy. Therefore Trump does not earn their support and people see Trump has his leg being pulled more than any of his predecessors.

Just like any of the empires in the history, the British Empire fell so will the "American Empire" eventually but people is seeing a young challenger on the rise. China is eagerly trying to mimic what the Uncle Sam's defeat over his mother to replace this ageing giant. People see that China is pathing her way towards an empire by advocating the Rise of a Big Nation followed by the initiative of Belt and Road. She is actively stretching her legs and arms over the world. Therefore people is not surprised to see China became the most solid supporter of the free world trade and globalization than is the U.S. now.

Globalization is the way empires pillage the world so as long as there is empire in the world, there will always be globalization out of question.