The sixth director general of the World Trade Organization, Roberto Azevedo, head of public affairs at PepsiCo, said that the integration of the global economy makes shocks caused by wars or epidemics affect everyone without exception, stressing that the global economy cannot return to what it was during a period The seventies, due to different circumstances and the nature of the risks.
He explained during a session entitled “Does the world’s economy return to the seventies?”, during the activities of the World Summit of Governments, that the resort of the world’s countries to a policy of self-sufficiency, in light of the spread of epidemics and wars, is not a successful economic solution, as supply chains turn to become local, while The global economy is based on economic interconnection and integration.
He pointed out that the inflation rates that the world is currently witnessing began with the Corona pandemic, and was reinforced by the Russian-Ukrainian crisis, and not caused by the recent rise in oil prices, especially since the repercussions of high oil prices are no longer as they were in the seventies of the last century, as the world currently depends on Various sources of energy sources.
Azevedo added that the global economy was characterized by comprehensiveness and integration, as economic relations and financial transactions were intertwined, which makes all countries of the world vulnerable to any global economic shock.
Commenting on the economic repercussions of the Russian-Ukrainian war, he said that Russia is one of the countries in the world that did not have good economic contact with the world, except through energy production, so its impact will be limited.
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