Wednesday, October 5, 2022

UN Warns That Ukraine War Will Hit Developing Countries Hard

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The United Nations has warned that the war in Ukraine will have a devastating effect on developing countries, intensifying as the conflict persists.

The warning came in a new report from the UN’s trade, investment, and development agency, UNCTAD.

Dubbed “Tapering a Time of Conflict,” the 33-page document observed that the war in Ukraine had triggered a global economic slowdown.

“The global economy is, literally and metaphorically, staring down the barrel of a gun. Stopping the war in Ukraine, rebuilding its economy, and delivering a lasting peace settlement must be the priorities,” the report asserted.

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It explained that two immediate impacts of the war had been exchange-rate instability and surging commodity prices, particularly for food and fuel.

“The added pressure of price increases is intensifying calls for a policy response in advanced economies, including on the fiscal front, threatening a sharper than expected slowdown in growth,” the report said.

According to the document, the danger for many developing countries heavily reliant on food and fuel imports is more profound.

It noted that higher prices threaten livelihoods, discourage investment and raise the spectre of widening trade deficits.

The UN report observed that with elevated debt levels from the COVID-19 pandemic, sudden currency depreciation could quickly make debt service unsustainable and tip some countries into a downward spiral of insolvency, recession, and arrested development.

“Whether this leads to unrest or not, a profound social malaise is already spreading,” it warned.

UNCTAD chief Rebeca Grynspan demanded a coordinated international response to help poorer countries weather the crisis, stressing to journalists that “urgency is of the essence”.

Russia invaded Ukraine on February 24, the most significant conventional military attack on a European state since World War Two.

Ukraine and Russia are among the biggest exporters of farm-grown foodstuffs and fertilisers, notably wheat, maize, rapeseed, sunflower seeds, and sunflower oil.

But Ukraine’s access to its ports has been cut off as the conflict continues.

At the same time, Russia is increasingly isolated from export markets, with its economy the target of international sanctions.

As a result, both countries’ commodities are shrinking fast, spurring surging prices.

 

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

13 COMMENTS

  1. This war is beginning to look like a planned conflict. Russia supplies only 8 percent of the world’s oil. So why should the global price of oil skyrocket because they are in a war? For years I have been hearing that most of the world’s oil come from the Middle East. There isn’t much money left to be made in vaccines, so create a war? Just thinking…

    • @Random Thoughts: Just thinking…are you related to “Random Guaido” from Venezuela? His current situation is also a result of his “hearing” ONLY “sweet-nothings” from the agents of the “empire of lies,” for years!

      (TRY TO KEEP UP, HERE) Russia is still pumping natural gas into Europe via the pipelines in Ukraine; they are still paying Ukraine transit fees to do this (while the war continues)…imagine that!

      The US unilaterally banned Russian oil imports (reneging on long-term contracts) of the particular grade required by their refineries on the Gulf of Mexico, after having (years ago) done the same to the only other 2 nations (Iran & Venezuela) from which that particular grade of crude had been available.

      Thus, after having shot itself in both feet (Iran & Venezuela), the US decided to shoot itself in the head (ending the status of the US dollar as the world’s reserve currency) after playing Russian Roulette, unsuccessfully.

      Now, the US bullied its vassal states into expressing unfriendliness towards Russia, and started the economic war against Russia, essentially preventing her from using her stash of dollars to pay off her international debts. In response, Russia has demanded that all its oil & gas exports to “unfriendly” nations, must be paid for in rubles (which are now backed by real gold) that can only be bought from the Bank of Russia (its central bank). Russia’s economic relations with “friendly” has actually improved; they can negotiate payments using their own currencies (India, for instance, agreed to a rubles-rupee plan), much to the consternation of the US.

      By freezing the US dollar assets of Russia, the US has openly announced to the world that it (the US) cannot be trusted with their dollar assets, so Russian-friendly nations are scrambling to free themselves from US dollar hegemony (THE GREAT EXTORTION RACKET, even greater than the vaccine racket of the last 2 years), under which they have lived (mere subsistence) since 1971.

      What about nations who joined the US in unfriendly behavior towards Russia? Well, there’s a saying: “He that lies down with dogs shall rise up with fleas”!

  2. Putin don’t give up run the Nazis from your backyard, everybody having sympathy for the most corrupt country in the world. You don’t notice not country in Africa condemned Putin Gee I wonder why ??? Thought I would never live to see the day Black People unify on something .

  3. Independent and critical thinkers will have spotted the BIG LIE in the article’s headline, immediately!

    The truth is that the very sanctions imposed on Russia & China by the US & EU will be catastrophic to the US & EU, as well as their vassal western states – a modern-day version of the tale about killing the geese that laid the golden eggs.

    In relevant news today, for states deemed unfriendly to Russia & China (last week, Russia announced that they would have to pay for their oil & gas in rubles, which must be bought from the Central Bank of Russia):

    “The Bank of Russia, in order to ensure a balance of supply and demand in the domestic precious metals market, will buy gold from credit institutions at a fixed price starting from March 28, 2022. The price from March 28 to June 30, 2022 inclusive will be 5 thousand rubles per 1 gram, ” the press service of the Central Bank informed.”

    In layman’s terms, the Russian Ruble is now backed by gold! (Contrast that to the US dollar [to which our currency is pegged], on which is inscribed, “In God We Trust”; but more realistically is based on how much we value our lives, while the US points a loaded pistol to our heads)

    Explained in simpler than layman’s terms by a random commentator, online:

    “Rubles for gas – brilliant move by Putin!

    What are the Europeans going to do?

    1. They can refuse to buy Russian gas:
    – Which will lead to an economic crisis
    – Which will lead to a banking crisis (that will spread to the U.S. [and all its vassal states])
    – Which will make the financial crisis of 2008 look like a tea-party, or

    2. They can buy Russian gas with rubles:
    – Which will devalue the Euro
    – Which will lead to a banking crisis (that will spread to the U.S. [and all its vassal states])
    – Which will lead to an economic crisis
    – Which will make the financial crisis of 2008 look like a tea-party.

    Checkmate! [small wonder that Russia has always produced champion chess players]”

  4. Shorter Fox misdirection:
    “I cannot admit to being swept up into the mass psychosis for supporting Nazis, so I will defer to a mythological entity to avoid accountability for my weak-minded cowardice”!

  5. Everyone is for his or herself. Every country is the same. Putin didn’t care that starting a war like this would affect the rest of the world and cause inflation to rise. China didn’t care the handling of the virus would affect lives and livelihood. Governments didn’t care by placing lockdowns would affect lives and livelihoods. US and allies do not care that placing sanctions would affect its people and other countries causing inflation to rise exponentially. Zelensky did not care that his actions and relations with the West and his decisions would get hundreds or thousands of his people killed including children and the innocents and cause his country to be like an apocalypse.

    • I was with you until your last sentence that says, “Zelensky did not care that his actions and relations with the West and his decisions would get hundreds or thousands of his people killed including children and the innocents and cause his country to be like an apocalypse”. It is an inalienable right of all people to seek freedom from tyranny and oppression such as being forced to live under Russian dictatorship, censorship, lies, suppression of free speech, etc. The fact that Zelenskyy sought to steer his nation away from being a sitting duck for Putin who is seeking to return all of Eastern Europe to Soviet totalitarianism, cannot be equated to “not caring” about the consequence of one’s actions!

    • Unknown- you are justifying the killing of innocent lives simply because someone did not bow down to a dictator’s fluckery? Yol humans are sick to rasss!

    • perhaps you should look up the Azov battalion and what they’ve been doing to Russians for the last 8 years. YOu people need to learn to shut up if you don’t understand the history of a situation.

  6. This dust up in Ukraine which we call a war is hardly a prelude of what is really to happen at some time at which none of us can put a time line on. I don’t think its healthy to empathize, to think and to dwell on the subject of wars of today, tomorrow or the distant future for that which is to come, and is certainly to happen, is nightmarish, for those of a weak mind, the fearful, the sick the elderly and the infant, the pregnant mothers and the ones stricken in bed it is too much to even think of – fo that which is to happen, will happen and suddenly too. Having said all of this, what are we to do?
    I believe in a Savior, I believe in His Name, I do call on Him daily, we who wait on Him shall be saved. The unbelieving shall be left behind to face the abomination of desolation.

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