IMD World Competitiveness Booklet 2023
Figure 2: Regional unemployment rate
Regional unemployment rate
Regional Consumer Price Index (CPI) Regional unemployment rate
Regional Consumer Price Index (CPI)
10 12 14
10 12 14 16 1 12
10 12 14
10 12 14 6
0 2 4 6 8
0 2 4 6 8
0 2 4 6 8
0 2 4 6 8
2018
2019
2020
2021
2022
Western Europe
Eastern Europe Eastern Asia Eastern Europe South America Eastern A ia 2020
Western Asia & Africa
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
2018
2019
2021
2022
Ex-CIS & Central Asia Western Europ Western Eu ope Ex-CIS & Central Asia North Ameri ca Western Europe s e
Southern Asi a & The Paci fic Western Asia & Africa i f i Western Asia & Afric Southern Asi a & The P ci fic
Eastern Europe astern Europe
Southern Asi a & The Paci fic i ci fi Western Asia & Africa Southern Asi a & The Paci fic
Ex-CIS & Central Asia - I l i Ex-CIS & Central si
Eastern Asia i Eastern Asia
North Ameri ca North Ameri ca i
North Ameri ca
South America
Globalization has been the center of criti cism for some time. While globalization’s push towards free trade and facilitation of the movement of people and capital have all undeniably contributed to height ened prosperity, trade-offs exist within this economic paradigm. For example, it has been reported by sources including the World Bank that China succeeded in moving millions of Chinese citizens above the poverty level partly thanks to globalization. However, the relocation of operations to lower-cost developing countries – mainly in Southeast Asia – has resulted in job losses for unskilled manu facturing workers in developed econo mies. Insufficient measures to address this dislocation, such as comprehensive upskilling and reskilling programs, have fueled a shift toward inward-looking policies, protectionist measures, and the emergence of populist political figures.
The impact of the COVID-19 pandemic further exacerbated these already existing dynamics, given the lockdowns, movement restrictions, and disrupted supply chains which have imposed even higher costs on the transportation of goods. Consequently, multinational companies have diversi fied their operations and reconsidered the geographical distribution of their activities. These factors, topped with the re-emergence of geopolitical risks, have together compelled firms to reassess their offshoring strategies. This has led to a paradigm shift toward reshoring (domestic production) and friend shoring (production in geopolitically aligned countries). This trend toward a more fragmented world extends beyond economic consid erations, encompassing political alliances and industrial policies. Countries and regions are increasingly prioritizing the safeguarding of their internal markets through targeted industrial policies. This
19
Made with FlippingBook - professional solution for displaying marketing and sales documents online