7 Ways The Coronavirus Pandemic Will Change The World As We Know It
The coronavirus pandemic will change the world as we know it, and there is no doubt about that. Our focus should be on what ways this change could be felt or materialized. In the words of Winston Churchill, “fear is a reaction, and courage is a decision.” At this point, fear should not be your problem; rather, courage and faith must be your best friend at these trying times.
When you know what is coming, you will be in a better position to prepare for it. Remember, chance favors only the prepared mind. This article is written to help prepare you for the things to come. It does not get your agitated or depressed; rather, the article is to help you make informed decisions with the future in mind.
Almost half of the world’s population has been confined to their homes. Also, in many parts of the world, especially in Europe, North America and Africa borders have been closed. This is all in the bid to curtail the virus. This unprecedented course of action by governments has greatly impacted the social structure of many societies and the corporate world.
Also read: 24 Greatest Lessons from the coronavirus pandemic in The World
There has been mass unemployment and also an increase in the specter of widespread hunger. At the moment, much remains uncertain. However, analysts have opined that the measures we have put in place to protect ourselves have the potential to change the ways we live, work, worship, and even play in the coming future. So, it is not about whether coronavirus pandemic will change the world. We should be more concerned about how coronavirus pandemic will change the world.
So, what does the future hold at the end of this crisis?
How Coronavirus Pandemic Will Change The World
Tech Firms Will Become More Powerful
Currently, the coronavirus pandemic is decimating the physical analog world. Traditional analog businesses like restaurants, airlines, and hotels are in serious crisis. The fact that we are surviving through this pandemic at this rate is because of technology. Big corporations like Google, Microsoft, Apple, etc. have all embraced virtual meetings. In the wake of the coronavirus pandemic and the resulting social distancing and lockdown, businesses either embrace technology or be run out of business. This has proven that corporations can conduct and transact business while employees are in the comfort of their homes.
Covid-19 Is Unlikely To End Great-Power Rivalry Nor Will It Usher In A New Era Of Global Cooperation
Sometimes to predict how the future will unfold, we take a few steps back to consider past events. Previous pandemics, like the influenza pandemic of 1918-1920, failed to end great power-rivalry. It also did not usher in a new era of global cooperation. There is every likelihood that history will repeat itself with this coronavirus pandemic.
We are going to witness a further retreat from globalization as citizens look up to their national governments to protect. Covid-19 is going to create a “new world” that is less open, less prosperous, and less free. Although it doesn’t have to be this way, however, the combination of a deadly virus and inadequate planning has placed the entire human race on a worrisome path.
This Might Be The End Of Economic Globalization
If there is one certain way that the coronavirus pandemic will change the world, it is through economic globalization. Covid-19 might get the stroke that breaks the Camel’s back of economic globalization. The Chinese growing economic and military power has already provoked a bipartisan determination in the United States to decouple China. The United States is also trying to force its allies to do the same.
Currently, the coronavirus pandemic is forcing corporations, companies, governments, and societies to strengthen their capacity while in these extended periods of economic isolation. When you watch recent events closely, it is highly unlikely that the world will return to the idea of mutually beneficial globalization.
In the absence of the incentive to protect the shared gains from global economic integration, the global economic governance put together in the 20th century will quickly die off. With the impact of this coronavirus pandemic, it will take great discipline on the part of political leaders to sustain international cooperation. The easiest and much safer thing to do is retreat into an overt geopolitical competition.
Also read: Businesses you can start during the Coronavirus Quarantine period
Many world leaders will be glad to prove to their citizens that they can manage the covid-19 crisis. Those of them who will fail is undoubtedly going to blame others for their failure.
We Are Going To Experience A More China-centric Globalization
Another way the coronavirus pandemic will change the world is by creating more China-centric globalization. The truth is this; covid-19 will not fundamentally disrupt the global economic directions. It will only accelerate a change that had already begun. We are going to see a move away from the United States-centric globalization to an even more China-centric globalization.
Chinese leaders know quite well that China’s century of humiliation from 1842-1949 was because of the futile effort of its previous leaders to cut it off from the rest of the world. In the past few years, the Chinese people have had an explosion of cultural confidence, and they believe they can compete anywhere. A very good example is Jack Ma and Justin Sun, founders of Alibaba Group and TRON, respectively.
With the efficient way the Chinese government handled the outbreak of covid-19 in the city of Wuhan, you can see that they are quite prepared. The same thing cannot be said of the Europeans and North America.
Companies And Businesses Will Likely Focus More On Stability Than Profit
Should humanity survive this pandemic, which I strongly believe, we will; companies will be more interested in staying afloat. The truth is that the basic tenets of global manufacturing are being undermined by this coronavirus pandemic. The closing down of factories in affected countries have left businesses and factories bereft o inventories and products.
When it all ends, more companies will demand to know more about the origin of their supplies. These companies will most likely trade-off efficiency for redundancy. Also, there is every possibility that governments will intervene, forcing the strategic industries to have domestic backup plans and reserves. In light of such an approach, businesses will witness a fall in profitability. However, there will be supply stability.
A New Stage In Global Capitalism
What the coronavirus pandemic has taught the world’s financial and economic system is that there are huge lapses in global supply chain and distribution networks. Covid-19 will not only have a long-lasting economic effect, but it will also lead to a more fundamental change. Companies and industries have always relied on globalization to source out raw materials all over the world to deliver their products to the market in record time.
Prior to this coronavirus pandemic, inventories that sat on shelves for a couple of days were seen as market failures. Before this Covid-19 era, supply had to sourced and shipped on a well planned global level. What this pandemic has taught us is that pathogens not only have the power to infect people, it can also shut down the entire “just-in-time” system of the global supply chain.
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When you consider the scale of financial market losses so far, companies will pay less attention to the “just-in-time” model when the pandemic comes to a stop. This could result in a dramatic new era in global capitalism. However, it may disrupt companies’ near-term profit but certainly, render the entire system more resilient.
We Might Have More Failed States As Many Countries Will Find It Difficult Recovering From The Pandemic
I expect that many countries will find it very difficult to recover from this crisis. With the current spate of state weakness, failed states will become an even more prevalent feature of the world. This coronavirus pandemic will, at least for a few years to cause most governments to look inwards. They will be forced to focus on what takes place within their borders rather than what happens beyond them.
There is no doubt that this crisis will most likely fuel the deterioration of Sino-American relations and the weakening of European integration.
The points that I have highlighted in this article on how the coronavirus pandemic will change the world are all possible outcomes. It means that it might happen just like I wrote here or not. You can also use the comment section to share your knowledge on how you think that the coronavirus pandemic will change the world. Thank you for your time.