While the pandemic may be loosening its grip, another global crisis looms over everyone’s head, giving people very little room to breathe. In addition, while initially improving from the pandemic, the economy remains in a fragile state as Russia’s war on Ukraine continues.
“The hurricane is right down the road coming our way,” warned JPMorgan Chase CEO Jamie Dimon last week. “We just don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”
The prospect of a severe recession is a great cause for worry in the developed world, but in less developed countries, the same kind of fear present is what the World Food Program is called a looming “hunger catastrophe.” When economies grow shaky and poverty rates increase, political systems also grow fragile and can be seen in a few countries.
Jamie Dimon’s comments address the economy in America and refer to the impact of the Federal Reserve’s efforts to slow down the soaring inflation. However, the pandemic and Ukraine war have been having rippling effects.
Although there are people who blame the current administration for the economic downturn, America is not the only country going through the same endeavors. Gas and food prices have been increasing, and staff shortage has been running rampant across the globe. Many businesses have also started reducing operation hours due to the lack of human resources.
The political state is already shaking. For example, in Colombia, voters shifted their mindset with hopes of change. Meanwhile, Sri Lanka is experiencing another crisis from bad decisions prior to the pandemic, running out of money in the process. The Middle East could suffer another political instability with the rising prices.
While each country handles the crises differently, many of them deal with similar problems. However, the World Food Program noted that the “seismic hunger crisis” is the most urgent as it is already crippling the world, potentially bringing nearly 50 million people to the edge of famine – a higher number compared to the lives COVID-19 has taken so far. In addition, the magnitude of poverty and hunger can cause great migrations, leading to political instability, which already looms over the impending economic hurricane.
