12 - Global Economy: Geographies of Production During Crises

Summary

Introduction

The global economic and social stresses are at their heights given the ripple effects of the COVID-19 pandemic, ongoing and emerging new variant/s, supply chains disruptions, war, rising inflations and unemployment. Economic and psychological hardships have been echoed across the globe since the start of the pandemic. These uncertain times and the changing nature of the global economy and societies require rethinking of the global production system, of trade and of livelihoods, particularly in developing a more resilient approach in economic geography to understanding the geographies of production and the state of the global economy during crises (see also Chapters 21 and 27 in this volume). This chapter, therefore, explores the state of the global economy and geographies of production during crises by examining the key actors and processes that contribute to the global economy and the work by economic geographers in understanding the geographies of production, supply chains disruptions as well as economic life. It aims to develop a more comprehensive approach to understand the changing nature of global economy, production systems, and societies by acknowledging the vulnerabilities and flexibilities of those involved. It also underscores the work of economic geographers in identifying the relationships between people and places as well as the location and distribution of economic activities and uneven development across geographic space and scale. The work of economic geographers ranges from traditional location theories/economic geography to new economic geography and economic geographies (Wood and Roberts, 2011). The field has broadened and become very diverse (see all chapters in Part I). The methodological approaches have also been mixed reflective of this plurality (Poon, 2005). This chapter utilizes the diverse approach in economic geography by offering an overview of the global economy, key actors and processes. It then discusses the evolving geographies of production and disruptions of the global supply chains. The chapter concludes with a discussion of developing a comprehensive approach to understanding and addressing the state of the global economy, geographies of production and crisis management.

The changing nature and current state of the global economy

The world has witnessed the impact of COVID-19 pandemic on both people and economy since the official start of the pandemic in early 2020.