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International Journal of New Economics and Social Sciences № 1(15)2022
IMPACT OF THE SARS-COV-2 CORONAVIRUS
PANDEMIC (COVID-19)
ON GLOBALIZATION PROCESSES
Dariusz Prokopowicz 1), Piotr Komorowski 2)
1)
PhD, Institute of Economics and Finance, Faculty of Social and Economics
Cardinal Stefan Wyszyński University in Warsaw,
ul. Wóycickiego 1/3, 01-938 Warsaw, Poland
Corresponding author: e-mail: darprokop@poczta.onet.pl
ORCID: https://orcid.org/0000-0001-6383-916X
2)
PhD eng., Institute of Economics and Finance, Faculty of Social
and Economics Cardinal Stefan Wyszyński University in Warsaw,
ul. Wóycickiego 1/3, 01-938 Warsaw, Poland
Corresponding author: e-mail: p.komorowski@uksw.edu.pl
ORCID: https://orcid.org/0000-0002-4731-271X
_____________________________________________________________________________________________________________________________________________
Article history:
Received: 23.05.2022 Accepted: 15.06.2022 Published: 30.06.2022
JEL Classification: F 15, F 36, G 15, L 16, O 11.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Abstract
The SARS-CoV-2 coronavirus (Covid-19) pandemic caused a global health crisis and a recession
of the global economy in 2020. As part of the improvement of instruments and recommendations
for handling, anti-pandemic security measures, the implementation of ICT and Internet information
technologies into remote communication processes, business processes, etc. has increased. The
scale of Internetization and digitalization of various aspects of economic activity and citizens' behaviour, social communication,has increased. During the pandemic, the scale of international tourism development decreased significantly and many international supply and supply logistics chains
were disrupted. Therefore, coronavirus pandemic caused changes in the nature of economic and
information globalization processes. On the other hand, globalization processes may also be determined by the growing importance of green globalization,increasing international importance of
achieving sustainable development goals and developing global environmental policies.
Keywords: globalization, pandemic, coronavirus, Covid-19, macroeconomics, global economy, internetization, digitization, sustainability, environmental policy
Statement of the problem in general outlook and its connection with important scientific and practical tasks
Determinants of economic globalization processes
For several decades, due to the development of transnational corporations, the development of global brands, the deregulation of financial markets (since the 1970s), the increasing importance of international capital flows, transnational direct investment of enterprises, the increase in the scale of operations of internationally operating banks and
investment funds, etc., the importance of economic globalization is increasing [1]. The
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
DOI 10.5281/zenodo.7114252
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development of the Internet increases the scale of information globalization. The development of globally operating technology companies increases the scale of international
technology transfer. The growth of technological and information globalization increases
the scale of development of economic globalization [27]. The ongoing economic globalization due to the increasing scale of international trade becomes an important factor in
global economic growth [2]. The socio-economic, political and business transformations
taking place globally since the middle of the last century have resulted in the acceleration
of globalization processes [23]. These processes include both developed and developing
countries and take place, among others, in the following areas:
a) based on broadly understood economics and against the background of economic
phenomena occurring simultaneously in many countries,
b) on the background of problems of information society, information technology and
data transmission [32],
c) in the area of finance, banking and capital investments [39],
d) in the area of social processes, culture and arts.
Global processes are taking place in many areas of people's and economic entities' functioning, for which: communication conducted through the Internet, settlements made
electronically, mobile banking, are basic attributes of everyday life. On the one hand,
teenagers contacting each other through social media networks and playing computer
games online, on the other become a part of the global village and globalization [31].
Globalization occurred in different periods and cultures of the development of civilizations, but in the distant past it usually had a more radical and violent character. From
antiquity to the mid-20th century, globalization processes were mainly determined by
military actions, military intervention of some countries in others, aggression aimed at
taking over the most important capital, which at that time was the land and the raw materials contained in it [18]. On the other hand, a more precise term for the globalization
processes of the time is internationalization due to the limited territorial scope of these
processes. Internationalization is the process of unification, standardization realized in
different areas of life, culture and technology within the territory of several or more countries [19]. The aforementioned limitation was determined in the distant past by geographic
and natural factors, because the individual processes of internationalization usually took
place within the area of a given continent or its part. This internationalization often concerned almost the entire civilization sphere of achievements of individual societies including inventions of technique and technology, mainly military, construction, means of
transport, agriculture, and in later periods also industry [32]. Besides, this internationalization was realized in the area of particular fields of knowledge and science, as well as
art, philosophy, economics and finance [37]. The current internationalization, which is
basically global in scope, has a different character [18]:
1) The globalization processes being realized today go beyond geographic and natural
barriers and take place simultaneously on all continents.
2) The current standardization in the field of scientific and technological achievements
is conditioned mainly by economic factors, but it proceeds evolutionary in principle
without military actions, which in the distant past were the main source of these processes.
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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3) In the course of current globalization the fastest standardization is taking place in the
components of economic and business infrastructure, i.e. means of transport, tele
communications, organization of the financial system of a country. The standardization also concerns such fields as [30]:
a) the language in which the people of a community, now a global community, communicate,
b) prices of basic energy carriers and raw materials and final products, falling prices of
electricity and heat produced from renewable energy sources,
c) culture in its broadest sense, but mainly in the field of media, marketing of global
products manufactured by transnational companies, philosophy and understanding of
the surrounding reality in connection with globalization of remote communication
via Internet and internationalization of many aspects of culture and media, including,
among others, achievements of the film industry.
The decline in the price of electricity and heat generated from renewable energy sources
globally is shown in the chart below.
Chart 1. Electricty from renewables became cheaper as we increased capacity – clectricity from nuclear and coal did not.
Source: Portal OurWorldInData.org (https://ourworldindata.org), licensed under CC-BY by the author Max
Roser, for: IRENA 2020 for all data on renewable sources; Lazard for the price of electricity from nuclear and
coal – IAEA for nuclear capacity and Global Energy Monitor for coal capacity. Gas is not shown because the
price between gas peaker and combined cycles differs significantly, and global data on the capacity of each of
these sources is not available. The price of electricity from gas has fallen over this decade, but over the longer
run it is not following a learning curve. (accessed on 10.06.2022).
The current information, technological and economic globalization is created by the processes of unification of standards, mainly in the field of ICT systems, telecommunications, clearing, and integration of financial markets, homogenization of products of these
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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markets, their marketing and distribution. Financial services are currently the area where
the most dynamic globalization processes are observed. The unification of standards is
not limited to the products themselves, but concerns the infrastructure and organization
of financial markets in the broadest sense [26]. Integration of international commodity
markets is also progressing, but much slower due to the higher cost of transporting goods
relative to the information stored digitally in the information systems of financial institutions [41]. Besides, in the field of international trade, many countries still selectively and
deliberately apply various types of protection instruments, contributing to inhibiting the
process of liberalization of capital flows and industrial final products [40].
The following graphs show the development of stock market index levels on the example
of selected countries and key events that acted on a global scale (coronavirus pandemic,
interest rate cuts and increases by central banks, the outbreak of war in Ukraine). Globally
acting factors on economies and capital markets caused analogous reactions and trends
on stock markets of individual countries [35].
Chart 2. Warsaw Stock Exchange Index and indices of several other major securities markets (June 2017 - June 2022).
Source: Own elaboration based on data from Bankier.pl portal (accessed on 13.06.2022).
The current globalization of financial markets began in the middle of the last century with
the internationalization of these markets, which consisted in the integration of separate
market structures operating in different countries into one common organism, for which
state borders no longer constituted a significant barrier [5]. When the integration processes of financial markets began to take place on a global scale, internationalization was
replaced by globalization [4]. One of the areas where the integration of financial markets
is currently taking place most intensively and clearly is the banking sector [40]. The acceleration of globalization processes in relation to banking systems was observed in the
1970s in connection with the increase in liberalization of capital flows and deregulation
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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of financial markets and in the 1990s, i.e. in the initial period of development of electronic
banking, including Internet banking and unification of standards for ICT payment and
settlement systems [22]. In the past few decades, the impact of globalization on society
and environment is significant and multifaceted. Especially the globalization of information, economy, culture, social dimension etc. The global problem of coronavirus pandemic (Covid-19) has affected the globalization processes taking place in many fields.
This pandemic has modified globalization in many ways [9]. On the one hand, the pandemic is global in nature, yet through relentless mutations, new regional types of coronavirus strains are created, which can then become and are becoming a new global strain of
the virus. However, when examining the impact of coronavirus on the global economy
and the economies of individual countries, many aspects and disintegrating factors
emerge that work inversely to the traditional processes of economic globalization [35].
For example, if due to the coronavirus pandemic, international logistics chains, including
intermodal ones were temporarily interrupted, then there are problems with maintaining
the continuity of production processes. When the scale of such problems increases, it may
result in moving production to other countries [31]. This may lead to a situation where
multinational corporations [42] that divided their production processes in the previous
years into stages in plants and factories located in other countries may now, because of
problems related to supply logistics, return to the concept of concentrating all production
processes in one country, in the country of the company's headquarters or in countries
located much closer to each other. This may result in many factories returning from developing countries to developed countries despite slightly or significantly higher production costs. This will reduce the risk of sourcing, procurement logistics, etc. Such internationally occurring economic processes have become an important determinant of the retreating processes of economic globalization [9]. At present (June 2022), the pandemic
state has been replaced by a state of increased pandemic risk in many countries, but the
aforementioned globalizing post-pandemic effects are still at work in many issues.
Chart 3. Daily new confirmed Covid-19 cases per milion people.
7-day rolling average. Due to limited testing, number of confirmed casus is lower than true number of infections.
Source: Portal OurWorldInData.org (https://ourworldindata.org), for: John Hopkins University CSSE Covid-19
Data (accessed on 10.06.2022).
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
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Besides, also between the issues of ecology, sustainable development, climate change,
the process of global warming, etc. and globalization, many correlations can also be diagnosed. Promoting the idea of sustainable pro-ecological development, including the
implementation of ecological innovations into economic processes should be an important factor of the current information globalization conducted through various new
Internet media, including social media portals [27].
More and more institutions promoting the principles of sustainable pro-ecological economic development act beyond national borders. The development of international cooperation for greater and more effective integration of political, business and social activities in the implementation of the principles of sustainable pro-ecological economic development, the dissemination of the concept of green economy, the introduction of ecological innovations, including the reform of the energy sector, the development of renewable and emission-free energy sources, the development of electromobility, the improvement of waste segregation, the development of recycling is insufficient, is too small [33].
Therefore, the transfer of technology and innovation, including ecological innovation between countries should be improved and developed.
Chart 4. What are the safest and cleanest sources of energy?
*Life-cycle emissions from biomass vary significantly depending on fuel (e.g. crop resides vs. Forestry) and
the treatment of biogenic sources.
*The Heath rate to 2019 and are show In primary energy substitution equivalents to correct for inefficiencies of
fossil fuel combustion. Traditional biomass is taken into account.
Source: Portal OurWorldInData.org (https://ourworldindata.org), for: Markandya and Wilkinson (2007); Sovacool et al. (2016); IPCC AR5 (2014); Pehl et al. (2017); BP (2019); Smil (2017), accessed on 10.06.2022.
In order to increase the global scale of implementation of eco-innovations and green technologies into economic processes, it is necessary to improve the logistics of international
transfer of new technologies. Environmental policy should be internationally synchronized. There should be greater compatibility and cooperation beyond national borders in
the implementation of eco-innovation and green technologies in economic processes, car-
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
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rying out environmentally friendly transformation of the energy sector, reducing greenhouse gas emissions, improving recycling processes, waste segregation, reclamation of
areas degraded by industrial development, e.g. through reforestation, etc. [16].
Supranational institutions such as the United Nations, World Bank, etc. should be given
more influence in terms of coordinating and solving global problems such as the progressive process of global warming. In view of the above, globalization processes continue to
have a large multifaceted impact on the economy, society and environment [24].
Analysis of latest research where the solution of the problem was initiated
Based on the review of source literature, it was stated that globalization processes change
their nature every dozen or so years. Current globalization processes are determined by
the activities of transnational technological, manufacturing corporations, internationally
operating commercial and investment banks, investment funds, international trade and
factor exchange, international technology transfer, etc. (A. Dmowski, D. Prokopowicz,
2010) [4].
The current globalization processes are dominated by economic, social and information
globalization. Besides, since March 2020, globalization processes are modified by SARSCoV-2 coronavirus pandemic (K. Golczak, K. Golinowski, J. Kamycki, K. J. Lewandowski, K. Pajak, J. Płaczek, D. Prokopowicz, Z. Wesołowski, 2021). As a result, international intermodal logistics chains for supply logistics and supplying factories with components, prefabricated parts and raw materials are shortening [9]. Besides, in the context
of financial and global crises that have already occurred in the 21st century, there are also
policy changes in the formation of production and socio-economic policies with the issue
of international direct investment, including the interventionist influence of the state on
these processes, the growth of protectionist practices to protect the domestic labour market. These processes also currently modify the ongoing processes of economic globalization. About the multifaceted impact of the coronavirus pandemic on the economy and
financial markets wrote D. Prokopowicz and P. Komorowski (2021) [35].
P. Soroka, D. Prokopowicz (2021) and others in the publication "Report containing the
diagnosis and forecast of the global financial and economic crisis determined by the
coronavirus pandemic in the economic, social, political and geopolitical area" on the
basis of the situation at the end of the 1st wave of the pandemic presented a forecast of
the global financial and economic crisis determined by the coronavirus pandemic in the
economic, social, political and geopolitical area with particular emphasis on the forecast
of the economic crisis [9].
J. Grzegorek, D. Prokopowicz, S. Goździewicz (2021) showed that the current era of the
fourth technological revolution, the development of Industry 4.0 technology and Internet
access from mobile devices, whose characteristics include Internet information globalization can increase the scope of global cooperation [13]. Although the term "global village" should suggest global cooperation, solving global problems, etc. (M. Such-Pyrgiel,
D. Prokopowicz, A. Golębiowska, 2021) [11]. Thanks to the new online media, it is possible to develop international cooperation in the field of scientific research. Unlike other
past eras, nowadays there are probably the greatest opportunities for international cooperation, including scientific cooperation to solve global problems (A. Gołębiowska, W.
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
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Jakubczak, D. Prokopowicz, R. Jakubczak, 2021) [10]. The increase in the scale of Internetization and digiotalization of remote communication processes and economic processes was also indicated by M. Matosek, D. Prokopowicz, A. Gołębiowska (2021) [27].
A. Gołębiowska and D. Prokopowicz (2021) pointed to the acceleration of the development and implementation of Internet technologies, Industry 4.0, including Big Data [8]
in business activities, in the development of remote Internet communication, the development of e-commerce, remote working, mobile banking, marketing conducted through
social media portals and other aspects of the growth of digitalization and Internetization
of business activities during the pandemic [34]. During the pandemic, the scale of cybercrime and improvement of cyber security techniques and systems increased. A.
Golębiowska, W. Jakubczak, D. Prokopowicz, R. Jakubczak (2021) showed that due to
the Internet environment in which the issue of cybercrime also the issue of cyber security
can be an important factor of information globalization [12].
Aims of paper. Methods
Prior to writing this article, a review of the literature addressing the impact of the SARSCoV-2 (Covid-19) coronavirus pandemic on globalization processes was conducted. The
conducted literature review was also preceded by the clarification of the key issues of this
problematic, which were analyzed, the definition of the objectives of the undertaken research and the formulation of key research questions and theses. The topic of this paper,
initially conceptually and axiomatically defined, was also clarified after the above-mentioned review of publications of other researchers on the impact of coronavirus pandemic
on globalization processes. In view of the above, this paper analyzes in a synthetic approach the problem of the impact of the key determinants of the development of the coronavirus pandemic in 2020-2021 on various aspects of the globalization processes taking
place. The analysis of the source materials shows that the investigated issues of the subject of the influence of the coronavirus pandemic on the globalization processes have been
described and considered in the previous scientific literature only in selected few aspects.
On the other hand, there has been no previous attempt to conduct research that would
consist of developing a synthetic account of this issue. A full synthetic approach would
include, in an integrated way, various key aspects of the impact of the coronavirus pandemic on the processes of globalization, the considerations would have the attribute of
interdisciplinarity and the conclusions would also have the attribute of synthetic approach. This is the type of research approach used in this study. One of the key methodological premises undertaken in this study of the issues of the impact of coronavirus pandemic on globalization processes was the use of a fully objective description of all premises, conditions, components of the analyzed topic and factors affecting the various aspects of the impact of coronavirus pandemic on globalization processes. Analyzing the
issue of the impact of coronavirus pandemic on globalization processes, the authors of
this study verified the theses and conclusions formulated by the authors of the cited publications. The verified theses and conclusions, which sometimes represented a diverse
view, heterogeneous assessment of key aspects of the topic in terms of their level of significance and identified correlations were used to formulate key research questions and
theses for this study. Based on the verification of the theses, conclusions were formulated
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
DOI 10.5281/zenodo.7114252
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and are included in the conclusion section. In formulating these conclusions of the conducted research, the principle of scientific objectivity, impartiality and syntheticity of the
research approach was followed.
Various research methods were used during the conducted research, including descriptive
and comparative method, inductive and deductive reasoning, descriptive-vector method
and media observation method. The choice of methods was determined by the type of
research materials, in which various aspects of the studied problem of the impact of the
coronavirus pandemic on globalization processes were described. In order to present the
key issues of the topic, to explain particularly important dependencies, links, correlations
occurring between the components of the problem of the impact of coronavirus pandemic
on the processes of globalization, mainly the descriptive method was used.
The comparative method was used primarily in comparisons of selected aspects of the
problem under study in time, i.e. the period of globalisation processes before the coronavirus pandemic in comparison with the period during the pandemic. Inductive reasoning
was used to select unambiguous facts and aspects of the coronavirus pandemic's impact
on globalization processes that met the condition of indisputability in their experimental
verification. Deductive reasoning was commonly used through rationalistic formulation,
selection and ordering of axioms, which did not have to be certainties. However, they had
to meet the condition of being able to represent complex problems in the form of models
and diagrams.
The axioms formulated by this method were built and developed in the process of logical
linking of facts. The descriptive-vectorial method was applied in this article by highlighting the important factors of the problematic of the influence of the coronavirus pandemic
on globalization processes with the indication of the appropriate direction of influence for
them. The literature review was also carried out using the method of media observation,
consisting of observation of selected issues of the studied problem described by publicists
specializing in specific areas of pandemic, economic, social, technological, etc.
Exposition of main material of research with complete substantiation of obtained
scientific results. Discussion
Determinants of economic globalization
An important factor of economic globalization is transnational manufacturing corporations, commercial corporations, and financial institutions that sell global products to markets in different countries [42]. As a result, transnational corporations use global marketing, including even the same advertising spots displayed in different countries as part of
analogous advertising campaigns. However, global marketing is only one of many elements influencing the development trends of economic, informational, media, social
globalization processes, etc. Many cooperating countries confirm the thesis that countries
will cooperate with each other economically if trade exchange is developed and barriers
to capital flow are reduced.
Economic and political cooperation should be carried out in such a way that the participating countries all develop economically, so that the standard of living rises in each
country. An example is the development of the European Union in Europe [32]. Also,
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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economic and information globalization should be developed, increasing cooperation between countries in various aspects and barriers in access to information in individual
countries will be reduced. Besides, a balanced balance of power in political, economic
and military terms between major national economies in global terms should be maintained [23]. Besides, in addition to the determinants of the development of international
trade and international direct investment usually carried out by globally operating corporations, among the important factors of contemporary processes of economic globalization are the issues of international flow of speculative financial capital and investments
made in foreign financial markets [14]. Well, in the context of the development of international capital markets, the development of stock exchanges, increasingly globalized and
interconnected, the importance of the globalization of financial markets, including capital
markets, stock exchanges increases. On these capital markets also operate increasingly
large, internationally functioning investment banks and investment funds, which generate
their profits increasingly from speculative trading in securities issued by companies and
the public sector, including government bonds of other countries [4].
In addition, the foreign exchange markets are growing, in which the internationally operating banks and investment, hedge funds are also speculative. Before the emergence of
the global financial crisis in 2008, it was mainly investment banking that generated the
acceptance of too high levels of credit risk and speculative, overvalued securities valuations on stock exchanges [17]. The recent global financial crisis that emerged in the autumn of 2008 was an example of an increase in potential systemic credit risk in many
countries, where the governments of these countries, through the issuance of sovereign
bonds and their sale to foreign investors, led to a significant increase in the risk of a liquidity crisis in state finances and generated serious sovereign debt crises in many economically smaller countries. All the issues described above also affect the economic development of individual countries [20].
Accordingly, the processes of economic globalization, information globalization, technological globalization, financial market globalization, etc. are significantly shaping such
issues as [4]:
a) the level of increase in the differentiation of economic development of developing
and highly developed countries, including the increase in the scale of differentiation of the examined factors of comparative advantage, determinants of specific
socio-economic policies, the scale of influence of globalization processes, international financial institutions and transnational corporations operating globally,
b) the level of growth in the importance of the share of foreign capital and technology
transfer in financing investment projects in developing countries.
Consequently, research on [42] continues in this area of concern:
a) an analysis of the impact of international technology transfer and the cross-border
flow of financial capital to finance said technology transfer,
b) analysis of the significance and economic efficiency of investment projects carried
out by multinational corporations based in highly developed countries for the development of key infrastructure enabling economic development in developing
countries.
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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In view of the above, the development of international trade, and especially the factors
activating this development, including, for example, the growing comparative advantage
between countries can motivate to overcome various types of barriers that divide different
countries [14]. Processes of economic globalization are strongly correlated with the scale
of development of international trade and international financial capital flows [43]. The
development of international trade with the simultaneous economic growth of many
countries, rising income and living standards of citizens reduces the risk of the emergence
of wars between countries.
With the development of international trade, capital exchange, flows of factors of production, the development of tourism, the growth of political cooperation, the development
of multinational corporations, the merger of enterprises previously operating locally, nationally and transforming into internationally operating enterprises, etc., may develop in
parallel. All these processes can be correlated with each other to a certain extent and are
important determinants of economic globalization processes [42].
Nowadays, the dominant view is that the current processes of economic globalization take
place to the greatest extent in the area of integrating markets and modifying the activities
of economic entities operating in these markets. It is widely accepted that globalization
as a process composed primarily of economic factors [2]:
a) proceeds simultaneously at multiple levels, including at the level of firms, individual markets, and the global economy as a whole;
b) consists of interrelated components that integrate the activities of economic actors
and merge national economies into a single global system;
c) progresses primarily under the influence of the activities of transnational corporations and global financial institutions and international economic organizations,
whose purpose is to support the effective economic development of countries affiliated with these organizations (IMF, World Bank, GATT/WTO) [24];
d) leads to integration of national economies, homogenization of market structures,
consolidation of financial markets, unification of commodity trading standards,
and growing interdependence of individual markets.
Globalization is a concept that describes complex multifactorial interrelated processes
analyzed primarily in the field of economics [19, 31, 43]. Therefore, it is most often identified with phenomena and problems that, due to their dimension, are realized globally
and concern various aspects of economics with particular emphasis on international capital flows, including technology and information [25]. In the second half of the last century, the economies of many countries moved from the industrial era to an era dominated
by services, information societies in which technology and information are becoming increasingly valuable assets. The widely accepted definition of globalization ties globally
occurring processes to those aspects of socioeconomic life that are most highlighted in
the media and science for multi-million dollar communities.
Globalization understood in this way includes transnational links between economies determined by the international flow of capital, trade exchange and exchange of technology,
knowledge, information technology and dissemination of various scientific achievements
[40]. The process of economic globalization understood in this way is analyzed as the
main factor conditioning the course of many phenomena occurring in the economies of
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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different countries and in the global world economy. The analyzed globalization is a significant factor generating significant changes on the ground of economies of many countries, especially those that are entering the next stages of economic integration, such as
countries of the European Union [32]. Economic globalization modifies, among others,
the following factors of economic systems:
- the rate of economic growth by usually contributing to its acceleration in connection
with the liberalization of capital flows;
- the level of unemployment, modifying its size on a local, national or multinational
basis;
- turnover on financial markets, generally contributing to their growth and standardization of individual markets and financial instruments functioning on them;
- settlement of financial operations, which is carried out in an increasingly shorter period of time, mainly non-cash;
- the emergence of new categories of systemic, economic-financial and investment
risks due to the increased deregulation of financial markets and the hedging of these
risks using new futures financial instruments traded on futures and cash exchanges
located in different countries, on different continents,
- the development of new types of online clearing and payments, such as the development of cryptocurrencies.
Cryptocurrencies may change the nature of the economic globalization processes taking
place in the next few years. There may be an increase in the importance of cryptocurrencies in the conduct of online payments and settlements. Internet payments and settlements
carried out with the use of cryptocurrencies may develop particularly quickly in the situation of the necessary high priority of security of transactions carried out online.
Since the 1970s, a process of intensification of various types of factors integrating the
economies of individual countries and regions has been observed. The noted increase in
integration is mainly conditioned by:
- the fact that the economies of many countries are entering a stage of domination of
services in the value of the generated GDP and societies are entering the information
age;
- technical and technological progress;
- metamorphosis of the infrastructure of management and economics of many organizations and enterprises, caused by the implementation of modern information technology solutions in many areas of the operation of individual entities
- the increasing standardization of consumer and financial services and products offered by transnational corporations and financial institutions operating in various international money and capital markets.
These processes have contributed to a significant reduction in the unit cost of financial
operations and trade transactions and indirectly to the GDP growth of the vast majority
of countries participating in the economic globalization [43]. The most significant importance for the growth of integration of individual markets and intensification of international ties at the level of economic systems is attributed to the liberalization of capital
flows and changes in its structure. In the past, land and labor capital were most important,
followed by financial capital in the form of precious metals and processed tangible goods.
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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Currently, the importance of new categories of capital, which include information,
knowledge and technology, is increasing. The importance of these categories of capital
grew on the basis of neoclassical trends in economic thought in the second half of the
20th century and has also become one of the many determinants of economic globalization.
In view of the above, due to the multi-faceted nature of economic globalization processes,
both positive and negative aspects of globalization processes are distinguished. The positive aspects of economic globalization include the international transfer of new technologies. This is facilitated by technological, economic, financial and information globalization. On the other hand, the negative aspects of globalization include the often occurring situation in which large, internationally operating corporations occupy a dominant
position in markets operating in individual countries [5].
Impact of the SARS-CoV-2 coronavirus pandemic (Covid-19) on globalization processes
The SARS-CoV-2 coronavirus (Covid-19) pandemic caused a global health crisis and a
recession of the global economy in 2020. In the improvement of instruments and recommendations for handling, anti-pandemic security measures, the implementation of ICT
and Internet information technology into remote communication processes, economic
processes, etc. has increased. [15]. The scale of Internetization and digitalization of various aspects of economic activity and citizens' behavior, social communication, etc. has
increased.
During the pandemic, the scale of international tourism development decreased significantly. The coronavirus pandemic also caused many changes in supply logistics. Already
during the 1st wave of the pandemic in Q2 2020, many international supply and procurement logistics chains were disrupted. Subsequently, in the following months, some companies switched from contractors, sub-assembly manufacturing partners, raw materials
and semi-finished products to those whose production factories are located much closer
than the existing contractors. Consequently, the SARS-CoV-2 coronavirus pandemic
caused changes in the nature of economic and information globalization processes [35].
During the SARS-CoV-2 (Covid-19) coronavirus pandemic, similar security measures
were taken in many countries around the world to limit the spread of the pandemic.
Among other things, there were recommendations or legally mandated orders to remain
in home quarantine and to continue working and/or doing business remotely via the Internet whenever possible [11]. Besides, in terms of wearing protective masks, restricting
the movement of citizens in public places, temporary closure of certain types of service
establishments and stores, cultural centers, suspension of stationary teaching in schools
and universities and their replacement by e-learning. Banks and public institutions also
offer their services mainly remotely via the Internet. The importance of e-commerce,
electronic payments made over the Internet is growing, the importance and scale of digitalization of the economy is now increasing [11].
In many countries, the applied safety measures to limit the development of the SARSCoV-2 coronavirus pandemic are analogous, very similar, but applied at different scales,
in other stages of the development of the pandemic, etc., so the effects of the applied
measures should also be similar. Besides, the SARS-CoV-2 coronavirus pandemic in
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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many respects, despite also a strong decline in tourism services and temporary restrictions
on foreign travel opportunities, is global in nature [9]. Among other things, the economic
impact will be largely international and global. One important element of this globalization is, for example, the analogous reactions of investors operating in the financial markets in different countries.
In addition, there is an international exchange of information on, for example, the effects
of security measures to reduce the development of the SARS-CoV-2 pandemic and anticrisis programs to reduce the negative effects of the pandemic on the economy, the functioning of business entities, branches and sectors of the economy, individual markets, to
reduce the scale of the development of economic crisis, the possible possibility of economic recession. Thanks to information globalization, the achievements of individual
countries in these activities to improve the security of citizens and interventionist, anticrisis economic policy programs [34]. Thanks to international cooperation, the global
problem of pandemics was solved more effectively compared to the situation if there was
no such cooperation.
Coronavirus SARS-CoV-2 pandemic has resulted in the acceleration of digitization and
Internetization of many economic processes, increasing the scale of e-commerce development, but mainly on a national scale, less on an international scale. However, there are
many indications that information and information technology globalization may increase
under the influence of the development of the SARS-CoV-2 coronavirus outbreak, while
economic globalization may decrease if the scale of broken international intermodal logistics chains is large [9].
The importance of developing sub-assemblies, intermediates, inputs for the production of
specific goods within a domestic economy, to which they are now imported from geographically distant other economies, may increase [35]. Thus, the importance of shortening logistics chains and replacing international logistics chains with national logistics
chains is growing in order to reduce the risk of dependence on foreign suppliers of components, located in geographically distant countries, characterized by different economic,
social, political systems and also different environmental conditions associated with a
different climate zone, i.e. also factors to which little attention has been paid until recently
[16]. Thus, the SARS-CoV-2 coronavirus pandemic may significantly reduce the scale of
economic globalization. Accordingly, the coronavirus pandemic caused a modification of
globalization processes.
The development of global environmental policy as an important factor in contemporary globalization
Considering the issue of implementation of the objectives of sustainable development and
green transformation of economic processes, globalization is a process in which the processes of pro-environmental transformation of the classical economy towards a sustainable, zero-emission, green closed-cycle economy, thanks to international agreements, are
increasingly obtaining a supra-national character [10]. The issue of environmental protection, protection of biodiversity of natural ecosystems, protection of various forms of
life from extinction, protection of the biosphere and climate of the planet should also have
a supra-national character.
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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Chart 5. What are the largest threats to wildlife?
The number of species threatened with extinction by a specific driver of biodiversity loss. This is based on a
study of 8688 species that are near-threatened or threatened with extinction on the IUCN Red List. Around 80
proc. Of assessed species are at risk from more than one threat.
Source: Portal OurWorldInData.org (https://ourworldindata.org), licensed under CC-BY by the author Hannah
Ritchie, licensed under CC-BY by the author Hannah Ritchie, for: Maxwell et al. (2016). Biodiversity: The
ravages of guns, nets and bulldozers, (in:) “Nature”, (accessed on 10.06.2022).
It is also related to the global nature of climate change problems, the progressive process
of global warming and the increase in the scale of environmental pollution, including air
pollution by toxic derivatives of the combustion processes of various fossil fuels, marine
and ocean pollution by microplastic particles, etc. [24]. On the other hand, the implementation of sustainable development goals is also coordinated internationally, for example,
through the UN-ET international climate conferences COP held annually [10].
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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The development of green technologies and implementation of eco-innovations, implementation of sustainable development goals and carrying out pro-environmental transformation of the economy does not have to cause a decrease in the scale of globalization if
pro-ecological reforms and transformations of economic systems will be implemented in
all countries and also on a global scale will be coordinated. In such a situation, i.e. within
the framework of international cooperation of exchange of pro-environmental technologies and implementation of global eco-innovations, the growth of importance of international organizations coordinating and integrating on a global scale the development of
green circular economy, pro-environmental processes of transformation of the energy
sector, development of renewable energy sources, etc., then globalization will continue
to progress only it will change its character, get more positive aspects, become more proenvironmental and can be referred to as green globalization [16]. The global deforestation
problem is shown in the map below.
Map 1. Share of global annual deforestation, 2015-2020. The UN FAO publish forest
data as the annual average on 5-year timescales.
Source: Portal OurWorldInData.org (https://ourworldindata.org), for: UN Food and Agriculture Organization (FAO). Forest Resources Assessment, 2020 (accessed on 10.06.2022).
Solving global problems resulting from the progressive process of global warming, carrying out pro-environmental transformation of the economy, increasing the scale of implementation of the objectives of sustainable development, climate protection and biosphere of planet Earth should become an important factor of globalization processes in
the 21st century [16]. In order to increase the effectiveness of solving global problems
arising from climate change and environmental pollution, it is necessary to develop inter______________________________________________________________________
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national cooperation. Within the development of international cooperation, global environmental policy should be developed. The aim of the global environmental policy should
be international integration and coordination of activities on environmental protection,
protection of biodiversity of natural ecosystems, protection of the biosphere and climate
of the planet [10]. One of the global problems that should be covered by global environmental policy is environmental pollution from non-biodegradable plastic waste. The map
below shows the global environmental pollution problem of plastic waste by analyzing
the mismanaged plastic waste per capita.
Map 2. Mismanaged plastik waste per capita, 2019.
Source: Portal OurWorldInData.org (https://ourworldindata.org), for: Meijer et al. (2021). More than 1000 rivers account for 80 proc. of global riverine plastic emissions into the ocean, (in:) “Science Advances”. (accessed
on 10.06.2022).
Taking into account the growing importance in the media in recent years of such issues
as pro-environmental policy, pro-environmental awareness of citizens, the determinants
of carrying out pro-ecological transformation of the economy, reducing greenhouse gas
emissions, increasing the scale of reduction of environmental pollution and increasing the
scale of implementation of the objectives of sustainable development, the question arises:
In the 21st century, will one of the key trends of globalization become global international
cooperation realized to efficiently carry out the pro-environmental transformation of the
classic growth, brown, linear economy of excess to a sustainable, green, zero-carbon zerogrowth and closed-loop economy to avoid or reduce the negative effects of the future
global climate crisis [16].
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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The SARS-CoV-2 coronavirus (Covid-19) pandemic may have increased the scale of proenvironmental general public awareness among citizens. However, whether the pandemic
has realistically accelerated the development of pro-environmental policies and international cooperation in this area remains an open question [33]. Based on the research, the
authors of this article concluded that despite the emerging opportunities in the framework
of the anti-crisis economic policy, unfortunately, the processes of pro-environmental
transformation of the economy have not been accelerated [33]. The anti-crisis public financial aid used during the pandemic was aimed at limiting the growth of unemployment
and, unfortunately, was not aimed at supporting mainly pro-environmental economic projects. Only in the European Union, in the final phase of the pandemic, developed the EU
Recovery Plan, under which one of the key strategic objectives is to support the processes
of pro-environmental transformation of the economy [16].
Another important factor in the potential acceleration of the pro-environmental transformation of the economy, including above all the pro-environmental transformation of the
energy sector in the European Union, is the ongoing war in Ukraine since the end of
February 2022. The ongoing war in Ukraine has caused a number of global phenomena
and crises, including, above all, an increase in the prices of energy resources and a food
crisis in some countries in Africa and poorer countries on other continents.
Chart 6. Global food production: how much comes from Ukraine and Russia? May
2019.
This is shown for the largest crops grown by Ukraine and Russia.
Source: Portal OurWorldInData.org (https://ourworldindata.org/agricultural-production), for: Calculated by
Our Word In Data based on the Food and Agriculture Organization of the United Nations. may 2022 (accessed
on 10.06.2022).
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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The SARS-CoV-2 coronavirus (Covid-19) pandemic may have scaled up the pro-environmental transformation of the economy. The level of greenhouse gas emissions unfortunately returned to the amount of CO2 emitted into the atmosphere before the pandemic.
However, due to the accelerating process of global warming, the issue of climate change,
the increase in the importance of international cooperation in achieving the goals of sustainable development and reducing CO2 emissions will result in the future recognition of
the negative effects of the climate crisis as a global problem [33]. The result may be the
development of global environmental policy. Thus, in the 21st century, the issue of global
environmental policy may become an important factor in the new green globalization.
The problem of increasing CO2 concentration in the atmosphere will be a topical and key
issue for many years to come in the context of projected climate change [10]. This issue
is illustrated in the figure below.
Chart 7. Atmospheric concentrations of carbon dioxide. Projection according to various scenarios.
Global atmospheric concentrations of carbon dioxide are measured in parts per million.
Source: Riahi et al. (2017). The Shared Socioeconomic Pathways and their energy, land use, and greenhouse
gas emissions implications: An overview, (in:) “Global Environmental Change”. Portal OurWorldInData.org
(https://ourworldindata.org), accessed on 10.06.2022.
Conclusions
The pandemic has changed the nature of progressive globalization processes in many
ways. In some areas of the economy, the pandemic caused globalization processes to slow
down and in others to accelerate. During the SARS-CoV-2 (Covid-19) coronavirus pandemic, problems arose in the timely delivery of components and prefabricated parts
within international supply and procurement logistics [9].
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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As a result, many companies that are assemblers of final, high-tech products are shortening their international supply and procurement logistics chains and are switching suppliers of sub-assemblies, sub-suppliers, and sub-suppliers that produce the prefabricated
components necessary to assemble the final product. In this type of situation, for many
companies in industrial sectors located closer to business partners, buyers of components
and semi-finished products, the pandemic has proven to be a growth opportunity [21].
These problems can reduce the scale of progressive processes of economic globalization.
On the other hand, the pandemic increased the scale of development of remote communication realized through the Internet, increased the scale of digitalization and Internetization of many aspects of economic activity [34]. The pandemic was a global health crisis.
Therefore, there was a development of international scientific cooperation to effectively
solve the problems generated by the pandemic.
On the other hand, greening developed globally can become a new green globalization.
Sustainable development should globally replace classical economics.
Therefore, on a global scale and in all countries, the scale of implementation of sustainable development principles, implementation of sustainable development goals, increase
in the importance of environmental (ecological) social responsibility, development of
pro-environmental programs, reforms of implementation of eco-innovation into economic processes, etc. should be increased. International cooperation in the field of exchange and cross-border transfer of pro-ecological technologies and global eco-innovations should be developed [33]. The SARS-CoV-2 coronavirus pandemic (Covid-19) is
changing the nature of globalization processes.
New global problems, i.e. global health, pandemic, but also economic problems change
the character of globalization processes.
Globalization of science and technology as well as information is becoming more and
more important in order to increase the effectiveness of international organizations and
institutions dealing with global problems. The importance of international, multi-modular, intermodal supply and supply chains is decreasing [9].
The importance of international logistics is changing. Besides, in the years to come, globalization processes may also be determined by the increasing importance of green globalization, i.e. the growing international importance of achieving sustainable development
goals and developing global environmental policies.
The current era of the fourth technological revolution, the development of Industry 4.0
technology and Internet access from mobile devices, whose characteristics include Internet information globalization may increase the scope of global cooperation [27]. Although the term "global village" should imply global cooperation, solving global problems, etc. With the new online media, it is possible to develop international cooperation
in the field of scientific research. Unlike other past eras, nowadays there are probably the
greatest opportunities for international cooperation, including scientific cooperation to
solve global problems.
In summary, the SARS-CoV-2 (Covid-19) coronavirus pandemic has had a significant
multifaceted impact on globalization processes. Due to the intermittent chains of international supply and procurement logistics, the shortening of these chains, the increase in the
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Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
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concentration of cooperating companies and cooperating enterprises economic globalization is decreasing. On the other hand, due to the increase in digitalization and Internetization of remote communication processes and various aspects of business, the development of e-commerce, e-banking, e-learning, remote working, online payments and settlements, etc., information and technological globalization has accelerated [22].
In addition, in connection with the growing level of pro-environmental awareness of citizens, the progressive process of global warming, the decline in the level of biodiversity
of natural ecosystems, the need to protect the biosphere and the climate of the planet, the
importance of the development of global environmental policy is growing, which may
also generate a new category of globalization in the future, which can be called ecological
globalization or green globalization.
Within the framework of green globalization, it is necessary to develop international cooperation in the field of transfer of new green technologies, eco-innovations and support
for the process of environmentally friendly transformation of the energy sector and also
in other aspects of environmentally friendly transformation of the economy.
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© 2021 /Published by: Międzynarodowy Instytut Innowacji Nauka-Edukacja-Rozwój w Warszawie, Polska
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/)
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International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
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© 2021 /Published by: Międzynarodowy Instytut Innowacji Nauka-Edukacja-Rozwój w Warszawie, Polska
This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/)
Prokopoiwcz D., Komorowski P., (2022) Impact of the Sars-Cov-2 Coronavirus Pandemic (Covid-19) on Globalization Processes
International Journal of New Economics and Social Sciences 1 (15) 2022: 157 - 180
DOI 10.5281/zenodo.7114252
180