The popularity of coronary virus diseases in 2019 has caused the world to fall into a completely unknown dangerous situation, and no country can be alone.More than half of the world's population is in a form of blockade.Global economies, regardless of the rich and the poor, will fall into decline, and countries must work together to reduce the negative impacts brought by the epidemic.
China, as the first epidemic center of crown disease, lets us see the necessity of fighting against epidemic in the world.Hubei governor of more than two months, coupled with strict traffic restrictions from all over China, led to nearly 40%year -on -year industrial profits in January and February.Even though the factory began to work again in March, due to the influence of foreign buyers due to the epidemic, the factory must now respond to issues such as cancellation, delay, and delay of payment.
Therefore, even if the domestic public health situation is gradually improving, the speed of China's economic recovery still depends on other parts of the world to some extent.The global economy is intertwined. For any country, even if the epidemic is controlled in China, the other parts of the world fall into chaos, and more epidemic conditions that may occur will hinder its economic recovery.
The global supply chain is also similar.Before the popularity of crown disease, the supply chain was still digesting the impact of more than two years of trade disputes between China and the United States.Today, it also has to face problems such as suspension of production, transportation interruption, and sudden drop in global demand.The World Trade Organization predicts that this year's global commodity trade volume may decrease by as much as 32%.At the same time, the unemployment rate of multiple economies has risen sharply: In the United States, 22 million people have applied for unemployment relief in the past, surpassing any period of history.
We should now understand that the closely connected and interdependence pattern of countries around the world cannot be reversed.No country can win alone, although some people may think so.The world is facing serious economic recession and humanitarian disasters. What we do not need is a nationalist political posture.
To minimize the influence of crown disease, the only way is to unite and consistent: In order to protect their people, governments of various countries must cooperate with each other to formulate plans to benefit everyone.The first step is to cancel protectionist tariffs and other trade barriers to ensure that key supplies (especially medical supplies and equipment, as well as food and other necessities) are delivered to each place required.Before everyone is safe, no one is safe.
Unity also means protecting employment, income and livelihood in various places.This requires practical measures to maintain the survival of small and medium -sized enterprises. The International Chamber of Commerce has recently emphasized this.Among most major economies, small and medium -sized enterprises have created a large part of work opportunities and provided many products and services we use every day.In order to ensure that the overall economic slowdown does not cause durable structural damage, these companies must be protected.
However, it is not only for the long enough time to support existing companies until they return to normal operations.When planning the road of crown crisis, our goal should be to create a better future.This future is to shape through mutually beneficial cooperation, not to support common prosperity trade, and to be shaped by other competing behaviors with other relationships with other relationships.
While striving to revitalize multilateralism, we must reshape multilateralism in multiple levels that recognize and reflect the global interdependence.This first means to ensure open and sustainable global trade. This is an effective means to achieve economic growth and alleviating poverty in all countries, regardless of size, rich and poor.Trade also benefits everyone through the same world system, so that global peace and stability are consolidated.
Establishing such a system is not only the cancellation of tariffs, administrative obstacles, but also those in -border measures that will hinder basic consumer goods and industrial products, especially the flow of technology.All countries must realize that we can enable people from all over the world to achieve tools needed to improve the quality of life, develop industry and innovation, work together to win, or we will face more difficult situations.
This means that the trade financing channels of emerging economies with a capital gap exceed 1 trillion US dollars are required to greatly improve trade financing channels.Insufficient trade and investment funds, severely cracking down on SMEs, hindering their ability to expand or innovate in the current situation, and restrict their ability to survive in adversity.Therefore, the International Chamber of Commerce calls on banks to increase the transitional financing of enterprises to reduce the worst impact of crisis crisis and allow enterprises to continue to trade in the case of shortage of funds.
However, there are many jobs to do.Although during the 2008 global financial crisis, promoting trade financing helped promote the global economic recovery, the progress of the future has fallen into stagnation.In order to ensure the continuous recovery of the economy after the crisis and develop a more tough and inclusive global economy for a longer period of time, trade financing must always have a place on the global agenda.
Revitalize multilateralism to ensure that open trade is a goal that can be achieved.They do not need new laws or additional resources, we only need to promise together and unite.From this we will achieve fair and sustainable development, this return will be huge.
Humanitarian assistance has long proved its importance during the crisis.Today, when we are in crisis worldwide, all of us must also recognize the importance of humanitarian trade.
Author Victor K. FUNG is Hong Kong Feng's Group Chairman and former Chairman of the International Chamber of Commerce (2008 to 2010)
English Title: The Trade Cure for the Global Economy
Copyright: Project Syndicate, 2020
