The Case for Regionalism in a Post-Coronavirus World

Motti

Regular Member
Joined
Jun 1, 2017
Messages
37
Likes
55
Country flag
The Case for Regionalism in a Post-Coronavirus World


COVID-19 has exposed the myopia and fragility underlying our worldwide supply chains. The first order of business, therefore, should be in ensuring the integrity of critical supply chains. Elected officials cannot play dice with basic necessities like food, medicines, clothing, public transportation, and the assorted nuts and bolts of daily societal functions. Supply chains should be shorter, less prone to exogenous risks, and must be dictated by long-term strategic imperatives rather than economics.

Take the global healthcare ecosystem, for instance. When COVID-19 struck, India — a traditional pharmaceutical powerhouse — was sourcing 70% of its active pharmaceutical ingredient (API) imports worth $2.4 billion from China. The figures appear worse for the US. According to a recent CFR blog, about 97% of all US antibiotics were sourced from China, on top of 80% of APIs used in local drug production. To make matters worse, both the US and India are engaged in a severe geopolitical logjam with China. Imagine the consequences of a full-scale trade war?
 

Motti

Regular Member
Joined
Jun 1, 2017
Messages
37
Likes
55
Country flag
In short, India needs to wean itself from Chinese imports as soon as possible. Atmanirbhar Bharat means nothing if Indian industries continuously get nudged out by cheap Chinese imports. I am not sure there is any sector in India that does not source some component from China.
 

Hijibiji

Regular Member
Joined
Feb 16, 2020
Messages
781
Likes
1,062
Country flag
You mean "localization" as opposed to "globalization"?

OK, so the russian website uses the term "regionalism"... OK.
 

Motti

Regular Member
Joined
Jun 1, 2017
Messages
37
Likes
55
Country flag
I believe both regionalism and globalization have not been properly defined yet. Their definitions keep morphing over the years.
 

Motti

Regular Member
Joined
Jun 1, 2017
Messages
37
Likes
55
Country flag
How soon can India begin to replace critical imports (such as active pharma ingredients as the author in the original link stated) from China?

The timeline is important. You cannot set up factories overnight.

 

Latest Replies

Global Defence

New threads

Articles

Top