[March 15, People’s Daily]Over the past few years, protectionism has been on the rise in some countries, leading to an increase in disruptions to global supply chains and industrial chains. Some believe that the “golden age” of economic globalization is over, given the weakness in trade to begin with.
However, economic globalization is an inevitable result of the development of productive forces and the progress of science and technology. For example, advances in science and technology have significantly lowered the costs of transporting goods, transmitting information, and moving people around the world, providing the material basis for economic globalization.
Economic globalization has provided great strength to the development and progress of human society. World GDP, which was approximately 25 trillion dollars (approximately 3,760 trillion yen) in 1992, will reach approximately 101 trillion dollars (approximately 1.5 trillion 5,200 trillion yen) in 2022. GDP per capita increased from $4,659 (about 700,000 yen) to $12,647 (about 1.9 million yen). In 1992, trade value as a percentage of global GDP was 40.15%, but in 2019 it was 56.33%. During the same period, the proportion of people living in poverty worldwide fell from 36.5% to 8.5%, and the average life expectancy of the population increased from 65.6 to 73.4 years.
The twists and turns that have appeared in economic globalization are mainly due to the policies of some Western countries. International organizations view rising protectionism as a serious threat to global economic recovery. The International Monetary Fund (IMF) has warned that if economic fragmentation continues, 7% of global GDP, equivalent to the combined GDP of France and Germany, could eventually be lost.
Economic globalization is also a “double-edged sword.” Fairly covering trade deficits is a challenge that each country faces. But the important thing is to find a way to solve the problem. The international community must focus on making people around the world happier and work together to advocate measures that benefit each country.
Economic globalization must respond to the demands of developing countries in particular, and resolve the problems of imbalance between and within countries brought about by imbalances in the distribution of resources. Interdependence among countries around the world has already become universal. Each country must develop itself while also thinking about the balanced development of the world. Together, we must grow the pie and divide it fairly, so that different countries, different classes, and different people can enjoy the fruits of development.
Economic globalization should be accompanied by inclusiveness. We must support each country to follow a path of development that suits its own national conditions, and at the same time ensure that all humankind develops together. Promote the liberalization and facilitation of trade and investment, maintain the smoothness of global industrial chains and supply chains, and ensure that each side considers the interests of the other side, and eliminate structural issues that impede the healthy development of the world economy. We must solve problems and maintain the vitality of global economic growth.
Economic globalization is the path that human society must take in order to move forward. The international community should work together to advance better economic globalization and promote the building of a community with a shared future for humanity. (c)People’s Daily/AFPBB News
Source: Japanese