Jakarta: The International Monetary Fund (IMF) assesses that the world is currently facing a crisis on top of a crisis due to soaring world commodity prices due to the war between Russia and Ukraine.
IMF Managing Director Kristalina Georgieva said the pandemic had changed people's lives as well as the world economy. Meanwhile, Russia's invasion of Ukraine has devastated the Ukrainian economy and sent shockwaves around the world.
"The economic consequences of war are spreading fast and far, to neighbors and beyond, hitting the world's most vulnerable people the hardest. Hundreds of millions of families are already struggling with lower incomes and higher energy and food prices, " he said, quoted from the IMF's official website, Sunday, April 17, 2022.
He said the war had made the situation much worse, and threatened to further increase inequality. Even for the first time in years, inflation has become a real danger to many countries in the world, causing a major setback for the global recovery.
"Economically, growth is down and inflation is up. In human terms, people's incomes go down and difficulties go up. This dual crisis and our ability to deal with it, is further complicated by another growing risk, namely the fragmentation of the world economy," he said.
According to him, the emergence of geopolitical blocs with different trade and technological standards, payment systems, and reserve currency reserves will create gaps between countries. This condition certainly makes poor countries and poor people will bear the heaviest burden.
This fragmentation of global governance is perhaps the most serious challenge to the world's country frameworks. This condition has also undermined the capacity of all parties to work together in the two crises they face, including facing other global challenges such as the existential threat of climate change.
"This is an important moment for the international community. The actions we take now, together, will fundamentally determine our future. We need that spirit today, as we face bigger challenges and more difficult choices," he concluded.
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