The war in Ukraine has not only affected the countries in Europe, but it has created an economic and social crisis worldwide. Whilst we support Ukraine and tackle its humanitarian crisis, there are wider consequences from the war too. In the last few decades, the world has improved in various aspects. Economic developments, social developments and investments have been successful. Extreme poverty, inequalities, and the child mortality rate, have also decreased. However, this rising prosperity has been interrupted by the war in Ukraine..
This conflict has raised the prices of food and fuel in developing countries, already weakened by the pandemic and climate crisis. This food crisis means that extreme poverty is on the rise again. As a result, young people are quitting their studies, especially girls, which causes a rise in the number of child marriages and teenage pregnancies.
The conflict is also a major blow to the global economy. Beyond the suffering and humanitarian crisis from Russia’s invasion of Ukraine, the whole world has felt the effects of slower economic growth and a crippling inflation. Since Ukraine and Russia make up 30% of the global exports of wheat, food costs have risen to a new record. Furthermore, prices of oil and gas have seen a dramatic increase too. This means that economies reliant on oil imports have seen their trade deficits grow, although oil producers have benefited from the high prices. As inflation is pushed further, incomes are lowering and demand is diminishing.Trade in neighbouring countries has also been disrupted. Therefore, countries with direct trade, tourism and financial exposures have felt additional pressures. Furthermore, businesses and investor’s confidence has decreased, negatively affecting the market. R
Hence, the war in Europe emphasizes that investments in education, livelihood, conflict prevention, peace work, and genuine partnerships are the most effective and affordable forms of crisis management. As a counterbalance, there is a danger of growing instability and recession in many countries in the world. An increasing number of countries are threatened by a deepening crisis. This is not unavoidable if we’re ready to invest in positive solutions.