On July 1, 2020, at Democratic Alliance on Digital Governance conference, organized by the Boston Global Forum, Professor Richard Vietor, Harvard Business School presented “Global Economic Effects of COVID-19 Pandemic” at the section “New Supply Chain, New Economy, New Democracy”.
Some thoughts on Global Supply-chains
- Supply chain disruption not new – Japanese tsunami (2011), global financial crisis (2008-09);
- Either demand or supply shocks;
- Pandemic presents countries with both demand and supply shocks;
- Hits major global economic centers almost simultaneously;
- Tradeoff is one of static efficiency; just-in-time production, hyper-specialization, minimizing inventories…
- S. – China trade war has significantly exacerbated re-shoring or diversification
- Part of recent de-globalization
The presentation can be found here.