Covid-19 has threatened the future of globalisation which might affect the economic activities of most countries. Currently, the integration of the world economy is in retreat on almost every front.
As a scholar, when I was reading last week, I came across the most interesting two theories that caught my attention. Firstly, the modern world systems theory which talks about how the division of labour has resulted in the world operating as a whole. The other theory that caught my attention is the game theory which looks at human interactions as a game.
In essence, these two theories made me think how my country Malawi will play the game; hence, the strategies it will implement to remain part of the global system. It is no secret that Covid-19 will result in a lot of revolution in our daily operations as individuals and the world as a whole; hence, there will also be a lot of structural transformation.
One thing is clear amidst this pandemic, we cannot avoid disruptive innovations and countries like Malawi need to get prepared for disruptive changes. As countries are on lockdown, it is no secret that most systems in the global arena are falling apart which will surely affect foreign direct investment inflows, imports and exports; hence, the balance of payments.
On the other hand, the level of debts will increase as countries are seeking funds from the IMF and World Bank to help in curbing the pandemic. It is all clear that right now we are talking about nationalisation as every country is coming up with strategies on how to survive the pandemic as well as to achieve economic prosperity.
Now countries need to play the game, not just for survival but also for dominance, but most importantly, amidst the dominant strategies, countries should also protect and prioritise citizens.
The lockdown will surely be an opportunity for product, service, business model innovation and import substitution. Furthermore, for innovative strategies countries need to research and contextualise what will work for them without copying the other, size one fit all strategy will jeopardize economic activities.
Besides, as countries are trying to survive on their own with closed borders, most will rule out the comparative advantage and start producing products in country to meet demand and supply which even at a later stage will alter the supply chain and outsourcing activities around the globe.
In addition, the lockdown will also result in companies practicing holacracy which a few companies in the United States of America have been using where employees can work anywhere and power is decentralised.
Of course, the pandemic has disrupted many activities, but surely it is not the end of society and this is why countries need to play the game
well and be ready for a lot of transformations.
Perhaps this will be an opportunity for countries like Malawi to move only from commodities and consider manufacturing. Moreover, developing countries like Malawi need to come up with strategies which are favourable to its citizens, and most importantly the State should avoid unnecessary debts, as in every game there are losers and winners and it would be painful to be on the losing end, borrowing should be only for essential needs to avoid accumulating unmanageable amounts of debt.
Lastly, it is important to keep in mind that no matter how long it rains, the sun will still shine one day, therefore, let us all stay healthy and observe rules, and take all necessary precautions while we fight the pandemic.