Acheiving economic security has become a top priority in global trade - ERDAL TANAS KARAGÖL

Acheiving economic security has become a top priority in global trade

The disruption in global supply chains in conjunction with the spread of the Covid-19 pandemic, and supply problems caused by countries - which have the raw materials needed for production - prioritizing their economies, have led to a change in the economic perspective and impacted macroeconomic indicators.

It is expected that in the coming period, the countries, which possess certain products and raw materials, will become more strategic, and that the global economy and politics will be shaped by these countries.

Economic security in lieu of competition

It is worth noting that the issues of shortage of energy sources needed for the security of energy supply, fluctuations in the supply of agricultural products, shortage of raw materials, low production of electronic chips needed for automobile production, and interruptions in the flow of raw materials, in recent years, have changed the economic system.

Disruptions in supply chains, and rising prices, threaten not only consumers and industry but also a strategic threat to the economic security of the economies of many countries; due to a possible shortage of supply.

Economic security includes a wide range of issues and elements interrelated with the investment climate, security of energy supply, integration of research and development, and the flexibility of operating supply chains.

Therefore, the threat to economic security means that the increase in per capita income in economies is slowing down and declining; Because of the decline in economic growth expectations in the world's economies, the expected economic stagnation and the decline in growth expectations.


These issues are very important; They will negatively affect economies in the upcoming period.


The new priority is economic security


Are priorities changing when it comes to the economy?

The trend of economic freedom, free trade, export, and economic growth, which began globally during the 1980s, has been a success story for many economies. Here, the question arises as to whether free trade, which has affected economies over the past forty years, has finally gone in the opposite direction.


The priority in economics is not trade but rather the hoarding of strategic products or raw materials.


The issue of energy supply security, the lack of supplies in agricultural products, which emerged with the Russian invasion of Ukraine, and China's reduction of exports of many raw materials and products with the start of the Corona epidemic, are concrete indications that the priority of the country's economies has changed.


This is a change in priorities, and questions about how the path of economic development will be, how the goals of the green economy that began around the world will change, and how will the possible effects be on poor countries in particular if countries with a strategic location in agricultural production decide to limit the export of their agricultural products, One of the important issues that must be discussed and focused on.


Moreover, it is clear that there will be important issues to consider as to how this change will affect current cooperation and integration between countries.

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