The Covid-19 pandemic is leading to
border closures and economic shutdowns across Asia, Europe and other affected areas. Global trade is being disrupted, and stock markets are
collapsing. The world’s economy is falling into
recession. Before we can begin to arrest the decline, we must reflect on some deep-seated problems.
In focusing on Covid-19, it is easy to miss the bigger picture. Yes, the first cluster outbreak was reported in
Wuhan, Hubei province, and the Chinese government should be
accountable for initially concealing the outbreak.
However, the Western world is also largely responsible for worsening the outbreak. US President Donald Trump has waged trade wars on different countries. The trade war with China was fought, in part, to force US companies to
relocate production from China to other developing countries, or back to the US.
The fact is that the Western world has been relying excessively on manufacturing and cheap labour in China. Hence, when Chinese factories shut as a result of the coronavirus outbreak, it has caused shortages of medical supplies like surgical masks and
drugs in the West.
This is why, as the coronavirus spreads in Europe and America, countries might not have sufficient resources. Indeed, the West has failed to contain the virus, because it arrogantly
misjudged the risk and wasted all the opportunities it had to stop the spread.
Trump has pointed to the US’
trade deficit as proof that other countries are exploiting America. Only a dummy would believe that. In fact, American consumers have been benefiting from low production costs in developing countries, and buying retail products at unreasonably cheap prices.
Meanwhile, the US keeps printing currency to spend, while getting the money back from developing countries by selling
government debt.
Evidently, the US is struggling with debt but still playing with fire. If no one stands up to the US, it might lead to another global financial crisis. In fact, the consequences of the last crisis, in 2008, are still being felt in the world’s economy. The quantitative easing measures taken then delayed that crisis, but have not resolved it.
Furthermore, developing countries that became the world’s factories to feed the insatiable demand from developed nations now face serious pollution problems. Shamefully, America, as the biggest beneficiary of these factories, is doing little to help because the pollutants are not in its backyard.
It
withdrew from the Paris climate agreement in 2017, and is refusing to implement carbon reduction policies. If more countries withdraw, acute climate change will surely destroy the planet.
In the face of an unstoppable pandemic, the “America First” doctrine must be laid aside. If greedy and selfish capitalists do not change their ways, the destruction of the world is not far off. Back in 2015,
Bill Gates anticipated the trouble the world would be in when he delivered a TED talk titled, “The next outbreak? We’re not ready”.
He proposed that the world invest in a global response system, and health care in the developing world. He argued that this would “make the world more just, as well as more safe”. It’s not too late to take his advice.
Albert Cheng King-hon is a political commentator
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