Travel bans put global economy on the verge

US-prompted chaotic responses to COVID-19 hamper interconnectivity

The novel coronavirus’ rapid spread throughout the world brought with it a wave of panic and nativism, fueling a flurry of uncoordinated and chaotic responses from a rising number of countries led by the US, with restrictions on global travel and trade that are not only ineffective in addressing the world public health crisis but will also have serious economic and social ramifications for the highly globalized world for years after the pandemic, global organizations and analysts said on Friday.

The sweeping restrictions, which came despite the US’ clear failure to stop the virus with its preemptive ban on visitors from China and in complete disregard for China’s effective experience, further sowed chaos and panic throughout the world and highlighted loopholes and a deterioration in the global governance system, which has been battered by rising nationalism and protectionism over the past few years, and underscored the dire need for an efficient mechanism to coordinate response to global crises, in which China can play a larger role, analysts noted.

Following the US’ 30day ban on visitors from 26 European countries on Wednesday, a slew of Latin

America countries, including Argentina, Bolivia and Peru also moved on Thursday to impose various restrictions on travelers from dozens of countries including the US, China and Italy.

While the move might be the easiest option under such a desperate situation and might offer “some help” to contain the virus, it could deal a major below to Latin America, which is already facing serious economic and social challenges and betting on bringing more tourists and investment from China, the US and Europe, according to Zhou Zhiwei, a senior researcher on Latin American studies at the Chinese Academy of Social Sciences.

Many countries in Europe, including the Czech Republic, and in Africa such as Uganda, also imposed new restrictions on visitors from countries like the US and those in Europe.

“Under normal circumstances, air transport is a catalyst for economic growth and development. Suspending travel on such a broad scale will create negative consequences to the economy. Governments must recognize this and be ready to provide support,” Alexandre de Juniac, IATA’s Director General and CEO, said in a statement sent to the Global Times on Friday.

Global airlines employ about 2.7 million people and are under serious financial and operational pressure, and the crisis could wipe out $113 billion in revenue for airlines even before the US measures, according to IATA.

Canceled flights also mean disruptions to business trips, conferences and other activities that generate trillions of dollars each year. Another deepening concern is that the restrictions fueled already rising protectionism and anti-globalization forces around the world. That explains why the new US measures failed to calm skittish financial markets.

However, unlike 2008, when G20 leaders convened emergency meetings and came up with a concerted stimulus package, there have been no concrete collective actions taken by the global community, although officials vowed a coordinated economic approach after recent meetings of the G7 and G20.

“This is a public health crisis, so what the global governance mechanism can do is very limited. That is why we are seeing many countries taking the matter into their own hands,” Chen Fengying, a research fellow at the China Institute of Contemporary International Relations in Beijing.

WHO advises

By unilaterally imposing restrictions, countries also disregarded repeated guidance and recommendations from the World Health Organization (WHO), which advised against countries restricting travel or trade, arguing such moves are ineffective in containing the virus.

Some countries like India, Germany and France have also imposed restrictions on exports of medical components and other supplies, as massive demand caused a global shortage in medical supplies in many countries.

Another stark reminder that restrictions on travel cannot stop the virus is the fact that Italy and the US, which are now facing serious epidemics, were among the first countries to impose a travel ban on China.

“Completely restricting [travel and trade] is counterproductive to [containing] the epidemic, to the economy and other areas,” said Cai Jiangnan, director of the Center for Healthcare Management at the China Europe International Business School.