Former director-general (DG) of the World Trade Organisation (WTO) has cautioned about the rise in cost of living for three years.
Roberto Azevêdo, in a session at the World Government Summit in Dubai last March 29 Tuesday, reportedly said that with the pandemic disrupting the global supply chain and driving up prices the cost of living will continue to rise for at least another two to three years.
About the current crisis Azevêdo, now a director of corporate affairs for PepsiCo, was quoted as saying that the prices of items have soared and, “Most people I talk to in different markets see this as a situation lasting a minimum of two to three years. I am not convinced this is a situation that can be normalised in a few months.”
Azevêdo, while speaking during a discussion at the summit titled “Is the World Economy Going Back to the 70s?”, said that some suggest that countries could look at self-sufficient models to build economies which are less reliant on exporting goods to other countries which would however be a mistake and “I think countries should avoid the trap of self-sufficiency.”
He said that having a supply chain completely internalised was a risk as during a catastrophe there could be no other supply chains and one could be inviting inefficiency.
