Indika Hettiarachchi
Recent geopolitical, security and trade tensions between powerful nations accelerated the “de-globalization” momentum marked by a shift from rapid trade integration toward protectionism, economic nationalism, and fragmented supply chains. Global trade and investment are being reorganized around national security and resilience, regionalization and “friend-shoring”, rather than cost-driven integration.
Small and developing countries like Sri Lanka face significant and disproportionate challenges from de-globalization. These challenges include suppressed economic growth, increased vulnerability to external shocks, and reduced influence in global decision-making. Sri Lanka’s trade dependency, stagnant foreign inflows, small domestic markets, limited export product basket make Sri Lanka a highly vulnerable country.
The World Economic Forum, the world’s leading pro-globalization think tank calls de-globalization as “re-globalization” and forecasts the outcome of currently ongoing changes will be “a multi-nodal, regionally and politically clustered world that still operates on a global scale, but with resilience and security prioritized alongside cost and efficiency”.
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