As socioeconomic experts around to understand what the world will look in a post-coronavirus age, India Today TV spoke to Morgan Stanley’s Chief Global Strategist Ruchir Sharma to understand just how much the world will change.
Speaking exclusively at the India Today e-Conclave session Jumpstart India, Ruchir Sharma said that contrary to popular perception, the world will fundamentally remain the same after the Covid-19 pandemic, barring the acceleration of few changes.
“If you look at past pandemics, those incredibly destructive episodes told us very little about what comes next… It is understandable that when we are going through such a stressful period, we will think that this is what the future will be about. However, this episode doesn’t change the world, it may simply accelerate some things,” Sharma said.
Ruchir Sharma has identified seven trends to emerge from the Covid-19 pandemic. Here is what he had to say:
DEGLOBALISATION
It means that the flow of goods, services, capital and migrant are slowing down. The share of global trade will fall to 53 per cent of the global GDP from a peak of 60 per cent this year because of a global recession. We will never go back to 60 per cent.
There is also a rise in nationalism around the world, especially food nationalism. Many countries want to ban food exports or rely less on imported food.
This will have a very significant impact on developing countries like India. Countries like China exported their way to prosperity. That model has been hit badly. India cannot do the same now. There needs to be much more reliance on domestic markets now.
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