Back to the future

A regression of economic globalization due to Corona seems unlikely [Photo: Bene A/GettyImages]

It is not only the elderly and those with pre-existing illnesses who are among the potential victims of the Corona pandemic. The end of globalization itself, too, is seen as a possible long-term effect. Crises are indeed moments of historical recalibration. However, not everything changes after a crisis.

It is indeed questionable that the pandemic will lead to the end of globalization, at least economically. Undoubtedly, there are alternatives to the global production chains, and a partial renationalization of economic cycles is possible. That, though, comes at high costs and welfare losses. Upon the return of normalcy, public and private debt will have skyrocketed. This kind of environment does not make further globalization less likely.

The situation looks a bit different with regards to political globalization. Many view the current crisis as the hour of the executive, while others point to the fact that we are witnessing a renaissance of political regulation rather than the return of the sovereign nation-state.

Until an accurate assessment can be made, many things will happen.  The outcome of the crisis will be determined not only by objective facts, but to a large extent also by battles over their interpretation.

Read more on the global implications of the Corona pandemic in the full German article here.

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