When economies shrink and poverty rates increase, political systems shudder. And we’re already seeing that in some countries.
As we emerge from the pandemic’s grip, we’re beginning to see just how the coronavirus reshaped the world. That picture was troubling enough before Russia threw a punch that pushed the world backwards.
Dimon was speaking about the US economy, referring to the impact of the Federal Reserve’s efforts to smother soaring inflation. But the economic reverberations of the twin crises — the pandemic and the Ukraine war — are sending shockwaves across the entire planet.
When people experience extreme economic pain, they often demand change. And it looks like change is coming. Colombians are on edge.
Similar dramas are playing out across the globe. Each country is different, and every situation includes multiple factors. But what is undeniable is that the impact of the coronavirus pandemic is lingering in ways much more significant than our exhausted debates over whether or not to wear masks or gather indoors with friends.
The pandemic has dealt a massive blow to the world beyond the millions of lives it has already taken. And then, just when the world was trying to ease supply chain bottlenecks, stabilize labor markets and restore oil production to pre-pandemic levels, Putin’s war reversed much of the progress.
Europe should also work to boost Ukrainian exports by rail, even if that would not make up for seaborne routes.
As we learned in recent years, the problems in one country don’t stay within its borders. Humanitarian reasons alone justify assistance to prevent famine, but self-interest is also at play.
Poverty and hunger drive great migrations and produce political instability. And that, in the face of an approaching economic hurricane, could make an already-difficult situation even more perilous.