CHINA DAILY | Felipe Muñoz:Outbreak no excuse for protectionism

Author:Felipe Muñoz Release date:2020-05-12 10:50:49Source:CHINA DAILY

The novel coronavirus pandemic has overwhelmed public health systems across the world. And although global efforts should be focused on containing the spread of the virus and providing proper medical treatment for those infected, we must not forget the medium-and long-term effects the outbreak will have on the economic and political systems, especially from the perspective of international relations.

To begin with, there is a lack of coordination and cooperation at the global level to contain the pandemic. Although institutions such as the World Health Organization have played an important role in dissemination of information on the virus and the pandemic situation, measures to control the outbreak have been taken mainly at the national level (even at the local level in some cases), despite the international community not necessarily agreeing to many of the measures, which include the closing of borders to check people's migration as a way to prevent the spread of the disease.

This is especially true for Europe-where countries, apparently ignoring the European project, imposed their distinct, stringent measures-and the United States, which left the European countries shocked by cancelling air travel to and from continental Europe.

In other regions such as Latin America, the lack of coordination between countries forced many people to be stranded hundreds, even thousands, of kilometers from their destinations due to the closure of airports and borders.

Many countries have been forced to take drastic measures to contain the pandemic, which will have a big impact on their economic development. In fact, lockdowns and quarantine measures in countries have disrupted the global production chains.

Although the production of necessities-such as food and medicines-and their distribution have been maintained, industries and, in many cases, entire sectors have collapsed, with transportation and tourism being the worst hit. And despite many companies encouraging employees to work from home, the real economy has taken a huge blow. In particular, small and medium-sized companies don't have enough capital and liquidity to offset the loss caused by lockdowns and restrictions on movement of vehicles and people.

Besides, given the unprecedented rise in unemployment in the United States, the severe economic shock suffered by countries such as France, Spain and Italy, and the devastating impact of the outbreak on other countries, states should make concerted efforts to rebuild the economic system and contain population growth.

Since all the above factors can intensify nationalism and xenophobia, there is a high possibility that some countries will adopt trade protectionist policies. And the lack of regional and global collaboration, as seen in the initial responses of countries to the outbreak, suggest some economies could indeed resort to protectionism to make up for the economic loss but also to assuage public feelings.

The lack of medical equipment including face masks, ventilators and testing kits led many countries to increase their domestic production because, in many cases, they were not certain they could import such products from other countries, especially because some governments banned their exports for fear of running short of supplies themselves.

Similarly, some governments are restricting the export of food products, saying they first need to ensure food security in their own country. This is not to say that countries should not boost their domestic production or ensure uninterrupted food supply. But such measures, in the absence of regional and global coordination and cooperation, could lead to a race to the bottom, where every country, at best, would end up in a sub-optimal situation.

Mistrust and lack of coordination among countries at a time when concerted efforts are needed to contain the pandemic may give rise to nationalist policies. International relations and multilateral trade, in particular, were facing problems even before the outbreak, and the pandemic will prolong the impact of Brexit and the US' protectionist and unilateral policies far beyond imagination. That's why it is important for governments to establish a global mechanism to coordinate their policies, in order to guarantee the well-being of people not only in their own countries but also in other countries.

The author is deputy director of the Institute of International Studies at the University of Chile, and an invited researcher at Fudan Development Institute, Fudan University.

The views don't necessarily reflect those of China Daily.