New research spells out the benefits of diverse supply chains

OVER THEIMF quarter-century before the pandemic, global manufacturing was transformed by the emergence of complex supply chains, through which firms could efficiently produce all sorts of goods at low cost and enormous scale. The pandemic put these supply chains through the wringer, causing wild swings in demand while forcing repeated lockdowns that frustrated both production and distribution. The result has been a surge in shipping delays, shortages of critical components and soaring prices.Governments have become keener to boost domestic production, the better to reduce their vulnerability to disruptions in foreign supplies. But new work by the suggests that this would be misguided. Supply chains held up better during the pandemic than is often assumed, it argues, and greater self-sufficiency is likely to leave countries more vulnerable to future shocks, not less.