PIC had the privilege of hosting the well-known economist and political commentator Lord Meghnad Desai for the latest edition of PIC Conversation held on 5th October. The event was chaired by Dr. Urjit Patel, former Governor of Reserve Bank of India. Lord Desai drove right into the topic and began by providing a brief background of the history of the onset and evolution of the phenomenon of globalisation. He explained that post the Industrial Revolution and the World Wars, it was the decoupling of the US Dollar from the gold standard that led to the first ‘oil shock’. This led to high inflation across the globe and precipitated the migration of Western capital and manufacturing to Asia as the Japanese came up with ‘just in time’ inventory, and developed efficient supply lines based on shipping routes, which eventually led to the development of the global supply chain logistics. This meant that companies could have a manufacturing ecosystem spread across several nations.
However, the onset of Covid-19 has highlighted that having global supply and manufacturing chains requires having flawless logistics in place. The entire logistics industry has been interrupted, as people remain wary of the spread of infection through movement of goods. Lord Desai stated that post pandemic, the world would see a reset in globalisation, with the changes being positive in terms of development of new modes of production.
He fielded questions from the audience regarding concerns of economic slowdown, delayed business cycles, and other issues. This event saw high attendance and audience interest and concluded with PIC expressing its gratitude to Lord Desai for having made time, sharing his expertise, and engaging with the audience.