We need to rethink the economic rules around supply chains

Globalisation is not a natural phenomenon, but the result of choices by politicians and businesses. So changes can – and should – be made, writes Phil Thornton, particularly in times of crisis

Ports, such have this one in LA, have worked hard to try and clear up global supply issues (AP)

The stark images of empty supermarket shelves and queues at petrol stations at points this year have been disconcerting. But we cannot say we were not warned about the threat of a supply chain crisis.

As Ian Wright, chief executive of the Food and Drink Federation previously told MPs in October, business now expects the current crisis to last until “2023 and into 2024”. He added: “It is a very long‑term thing.”

The last decade and a bit have shown how vulnerable global supply chains are. The cause of the 2008 global finance crisis was a credit crunch, as banks realised they had no idea whether their trading partners were financially sound and shut down their lending operations. World trade experienced a sudden, severe and synchronised collapse.