Gita Gopinath said it is time for international solidarity because a lot depends on the global supply chain. She said currently many places are under lockdown.
Gita Gopinath said it’s very important that the countries don’t resort to protectionism and try to go inward banning export. (File phoot: AFP)
International Monetary Fund (IMF) chief economist Gita Gopinath on Wednesday warned against the protectionist approach by the governments in post-coronavirus phase. Speaking to India Today TV in a special E-Conclave corona series, Gita Gopinath said it is very important that the countries don’t resort to protectionism and try to go inward banning export.
Gita Gopinath said it is time for international solidarity because a lot depends on the global supply chain. She said currently many places are under lockdown. “People are not going to work. No significant economic activity is happening. Supply chain is disrupted. If countries turn to protectionism, it would do great damage to the global supply chain,” Gita Gopinath said.
Her comments gain significance in the view that voices are being raised in many countries including the US that dependence on China, which is not only the manufacturing hub of the world but also the most important pivot in the global supply chain, made them extremely vulnerable to novel coronavirus pandemic.
The US has been the worst hit by coronavirus pandemic with maximum number of infections and deaths. The Europe, another economic superpower with huge dependence on China, is equally adversely hit by coronavirus. On the other hand, China, from where coronavirus pandemic spread to the world, managed to contain the virus relatively quickly. The sentiments in many economic power-houses are going in favour of what is being called de-globalisation.
Gita Gopinath warned against any such moves by the governments of these countries. She emphasised the coronavirus pandemic has brought the biggest economic crisis since the Great Depression of 1929-30. It is much bigger than that of 2008-09 that originated in the sub-prime mortgage troubles in the US.
“It is important not to put restrictions on export on certain items by manufacturing countries,” said Gita Gopinath adding, “This is the moment of solidarity.”