Topic 2: (DE)GLOBALIZATION

Recently, the Indian government announced a partial ban on wheat exports, an attempt to tame the prices and meet domestic demand. Although India accounts for only a fraction of global wheat exports, the protectionism move made by the Indian government has been widely criticized.

Improved seed selection and better farm practices have given bumper harvests in recent years. However, a severe heatwave across some major wheatproducing states ruined the harvest, impacting the output. Like India, 20 other countries have put restrictions on exports of food and fertilizers. These protectionism measures could lead to a full-scale trade war.

For three decades, falling trade barriers and hyper-efficient logistics produced an age of easy trade across the globe. But over the last few years, a series of disruptions have increased trade barriers. Tariff rate hikes during the US-China trade war, covid induced lockdowns, supply disruptions due to the Russia-Ukraine war, and export controls are all toppling the supply of goods and commodities. While some of the above factors may fade away with time, there is an increasing fear of deglobalization which could lead to a world of lower growth and higher prices.



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