The world is slowly moving into what it has been defined as slowbalisation, a new economic world order that is moving into a more regionally focused economies driven by the need to diversify the supply chain and become less dependent on China.
Globalisation has proven to be a proporeous engine for world trade and lifting out of the poverty millions of people in China, Southeast Asia, India and Africa mainly. Most of Latin America has been stagnant during the past two decades, only Mexico has a highly diversified economy but without the benefits of it as its main drive for economic development has been profiting from low wages and high corporate benefits, inequality remains in most of the country and industrialisation remains closely linked to trade agreements and foreign investment.
Third world countries have no other option but to comply with highly developed countries into trade agreements and dependent on foreign investment. Corruption and crony policies that benefit only a few have created a "dead end" for these countries.
Trade wars and coronavirus / covid-19 have created the perfect storm for globalisation and we are at the point of no return, we are going to still be seeing soft globalisation but the continuing growth of global trade is going to keep slowing and focusing on regional suppliers.
For North America this is an opportunity to become less dependant on China, and source the supply chain to Mexico and Central America and even South America to keep low and competitive prices for most goods that rich countries such as the United States need.
Some trademarks and companies in Europe have been reshoring and resourcing the supply chain to Turkey and Northern Africa, regionalisation is and ongoing effort for most european companies acknowledging that China has been harming european intellectual property such as the case of Siemens in high speed trains.
Most see Slowbalisation as a threat to growth but countries such as the US can thrive under this scheme by protecting their intellectual property and sourcing the remaining processes to Mexico and Central America and focus in exporting high value goods such as mobile technologies, cars, trucks, aircrafts and source low tech processes such as textile manufacturing, aerospace components such as harnesses, automotive components among other goods that need to be handcrafted.
The integration of northern Mexico to enhance such capability is fundamental, in such an economic global environment, the government needs to provide better infrastructure for central and southern Mexico to create opportunities for Michoacan, Oaxaca, Chiapas and Guerrero mainly and create a deconcentration of economic power among monopolies and oligopolies in central mexico key in a certain time of history, now a liability for national economic growth. What these means is to create legal instruments that divide infrastructure from the service, for example telecom, which the infrastructure operator is the same as the service provider.
Mexico in such terms in other industries such as natural gas have created good rules to divide such companies and thus making opportunities for service providers to compete using the same pipeline, telecom, banking, mining and other highly concentrated industries need to be rethinked to level the opportunities for more companies and so helping employees to earn better driven by more competitive labor opportunities.
It is essential for the US to push for better policies if countries want to make business, democracy, highly democratised economies and competitiveness is essential to put ethics and the citizens interests and the centerpoint.
The US has also suffered from highly concentrated industries, the results are seen now as a divided society that don't longer believe in their authorities and politicians. To enhance globalisation, regionalism is key, the European Union knows that if we create trade agreements without social and economic reforms, development will be uneven and corruption will be inside the regional system, direct or indirect. In such comparison, Latin America's corruption damages trade, businesses and society and thus pushing the United States into receiving illegal immigration, sponsoring security initiatives to combat drug trafficking, investing in the development of infrastructure needed to conduct trade and financing debt, in general attractive and lucrative to benefit from low wages, but in long term damaging for US reputation and national security.
Slowbalisation is both a threat and an opportunity, a two edged sword, a great opportunity for growing and help regional development, and a threat if negatively influencing policy to only benefit high profits and crony policies. We remain positive that highly developed countries have understood that leaving unattended matters and not creating policies that embrace pulling countries to reform their economy by conditioning investment and trade deals is a bad business for everyone.