Globalisation teeters from Ukraine war, Covid-19 pandemic one-two punch

Two years of disruptions amid the pandemic have caused major bottlenecks in the global supply chain and led to shortages, which the war looks set to make worse

The US says it’s still ‘deeply involved’ with the global economy – but as it decouples from China, some have declared ‘an end’ to 30 years of globalisation

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Shipping containers are seen piled up in the port of Bilbao, Spain, earlier this month. Photo: AFP

Published: 12:08pm, 27 Mar 2022Updated: 12:19pm, 27 Mar 2022

Globalisation, which has both fans and detractors alike, is being tested like never before after the one-two punch of Covid-19 and war.

The pandemic had already raised questions about the world’s reliance on an economic model that has broken trade barriers, but made countries heavily reliant on each other as production was delocalised over the decades.

Companies have been struggling to cope with major bottlenecks in the global supply chain.

Crews dredge near the container ship Ever Forward after it ran aground off the US coast earlier this month. Its sister vessel Ever Given disrupted the global supply chain for days after grounding in the Suez Canal last year. Photo: AP

Russia’s war in Ukraine has raised fears about further disruptions, with everything from energy supplies to car parts to exports of wheat and raw materials under threat.

Larry Fink, the head of financial giant BlackRock, put it bluntly: “The Russian invasion of Ukraine has put an end to the globalisation we have experienced over the last three decades.”

“We had already seen connectivity between nations, companies and even people strained by two years of the pandemic,” Fink wrote in a letter to shareholders on Thursday.

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