The global economy is experiencing a ‘great reindustrialisation’, driven by geopolitical shifts, the pandemic, and climate change. This reindustrialisation is not about reviving old industries, but building new ones, focusing on advanced manufacturing and digital technologies.
The geopolitical shifts, especially the tension between the US and China, are causing a rethinking of global supply chains. Countries are prioritising resilience over efficiency, leading to a more regionalised and diversified approach to production.
The pandemic has accelerated this shift towards reindustrialisation. The crisis revealed the vulnerabilities of global supply chains and the importance of domestic production capacities in critical sectors like healthcare and food.
Climate change is another factor driving reindustrialisation. The transition to a low-carbon economy requires a massive industrial effort, from renewable energy technologies to electric vehicles.
Reindustrialisation is also linked to the rise of digital technologies. The digital economy requires physical infrastructure like data centres and semiconductor factories, leading to a new kind of industrialisation.
This great reindustrialisation presents both opportunities and challenges. It could lead to job creation and economic growth, but it also requires significant investment and policy changes. It’s crucial for countries to adapt to this new economic reality, and to do so in a way that is sustainable and inclusive.
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