The COVID-19 pandemic is putting our understanding and approach to globalization to the test. The cumulative effect of supply bottlenecks and falling consumer demand coupled with increasing calls for domestic production of (essential) goods is challenging the existing global architecture of production, trade and investment flows.
Yet, the pandemic is only the latest in a series of global shocks and emerging mega-trends that have shaken the pillars of international production networks. Indeed, COVID-19 seems to be accelerating some of the trends that were already manifesting within the world’s value chains, including the growing role of digitization, regionalization of production networks, and the focus on proximity to key consumer markets.
Companies and governments alike are currently reassessing the way goods flow across borders, and they are in search of targeted solutions for tackling fragility in industry supply chains. Thus, the process of recalibration of global trade and production networks is also expected to bring to the forefront novel industrial policy approaches to reap the benefits from GVCs in both developed and developing economies.
Key questions to be discussed at the FGI 2020 are as follows:
- How can we understand value chain risk as a result of external shocks and emerging mega-trend and do we need to rethink existing approaches to international production and global sourcing?
- What options do companies have for improving resilience of their global footprint?
- How can policy and international cooperation help build resilience? Are there already “good practices” at the horizon?
- LI Yong (Director General, UNIDO)
- Gabriel Felbermayr (President, IfW Kiel)
- Ricardo Hausmann (Professor, Harvard University)
- Rania Al-Mashat (Minister of International Cooperation, Egypt)
- Susan Lund (Partner, McKinsey and Leader, McKinsey Global Institute)