Volume 11 - Issue 59
/ November 2022
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http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2022.59.11.13
How to Cite:
Musiienko, O., Kapustnyk, V., Arbeláez-Encarnación, T.F., Rojas-Bahamón, M.J., & Arbeláez-Campillo, D.F. (2022). The global
economic crisis against the background of the war in Ukraine: Currant realities and prospects for overcoming. Amazonia
Investiga, 11(59), 141-150. https://doi.org/10.34069/AI/2022.59.11.13
The global economic crisis against the background of the war in
Ukraine: Currant realities and prospects for overcoming
La crisis económica mundial en el trasfondo de la guerra en Ucrania: Realidades actuales
y perspectivas de superación
Received: September 20, 2022 Accepted: December 15, 2022
Written by:
Oleg Musiienko40
https://orcid.org/0000-0001-6533-0359
Volodymyr Kapustnyk41
https://orcid.org/0000-0003-0733-4233
Tanya Fernanda Arbeláez-Encarnación42
https://orcid.org/0000-0002-1635-4116
Magda Julissa Rojas-Bahamón43
https://orcid.org/0000-0003-4882-1476
Diego Felipe Arbeláez-Campillo44
https://orcid.org/0000-0002-9041-9563
Abstract
The purpose of the article is to study the global
economic crisis through the prism of the war in
Ukraine, as well as to study the prospects to
overcome it. The subject matter of the research is
global economic crisis. Research methodology
includes the use of general scientific and special
methods of scientific knowledge, including
dialectical, historical, qualitative and quantitative
comparison, normative and dogmatic, method of
factor and structural analysis, modelling and
forecasting methods. Research results. The
peculiarities of the term “economic crisis” are
revealed and the authors’ definition of this
concept is provided. National and international
statistical studies related to the economic
situation in Ukraine are considered. The
legislative acts and resolutions on solving the
problems of the economic crisis caused by the
war, adopted by Ukraine, are analyzed. Practical
implementation. It is determined how the war in
Ukraine affects the economic system of all
countries of the world. It is concluded that the
40
Ph.D in Law, Associate Professor, Associate Professor of the Department of Criminalistics of the Yaroslav Mudryi National Law
University, Ukraine.
41
Doctor of Law Sciences, Associate Professor of the Department of Forensic Medicine and Medical Law named after Honorary
Professor M.S.Bokarius, Kharkiv National Medical University, Ukraine.
42
Estudiante Derecho, Universidad Libre de Colombia.
43
PhD. Educación y Cultura Ambiental. Docente titular Jorge Eliécer Gaitán. Grupo de Investigación Primmate. Par evaluadora
Colciencias, Colombia.
44
Grupo de Investigación Lenguajes, Representaciones y Educación, Universidad de la Amazonia, Grupo de Investigación Primmate,
Colombia.
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war in Ukraine negatively affects inflation
fluctuations and may cause and could increase
poverty in Colombia. Value/ originality. It is
concluded that the war in Ukraine can be the
cause of global economic crisis. The measures
that will contribute to overcoming rapid
development of this negative phenomenon are
proposed.
Keywords: aggressor, crisis, economy, finances,
food, poverty, war.
Introduction
We observe crisis phenomena in any sphere of
development of modern society – social,
political, spiritual and economic ones nowadays.
In particular, the latter one – the economic sphere
or economic space – is an extremely relevant
topic for discussion. As a result of the armed
aggression of the russian federation against
Ukraine and the conduct of hostilities on our
territory, the economic crisis has begun to
develop rapidly, and its effects are being felt
worldwide.
Until the 19th century the concept of “crisis”
referred to the medical sphere (a sharp course of
the disease), the theater (the culmination of the
performance), politics, military affairs, and
agricultural production. In the middle of the 19th
century it began to be used in the economy, as a
result of the comprehensive research by Karl
Marx, who came to the conclusion that the crisis
is an integral part of the capitalist economy
(Kuruma, 1936).
The world experienced one of the biggest global
crises of modern times as a result of the rapid
spread of the Covid-19 pandemic, which
seriously shook the world economy in 2020.
According to economic experts, after the
pandemic, the world community is facing the
worst economic crisis since the Second World
War. Thus, in the first 9 months of 2020, the
number of working hours decreased by 11.7%,
equal to 323 million permanent jobs. This, in
turn, led to the reduction in revenues of $3.5
trillion, or 5.5% of GDP. About 12 trillion dollars
were spent on financial support for families,
vulnerable groups, and enterprises (Radio
Svoboda, 2021).
The Head of the UBS, Axel Weber, noted that it
will take about two years to return to pre-crisis
GDP indicators, that is, the world awaits a long-
term recovery (Ellyatt, 2020). The
representatives of the United Nations Conference
on Trade and Development (UNCTAD) say that
the economic consequences of the coronavirus
will be felt for a long time, primarily among the
poorest and most vulnerable social groups.
Before the world had recovered from the
economic crisis caused by the rapid spread of the
Covid-19 disease, on February 24, 2022, the
Russian Federation launched a full-scale
invasion of the territory of Ukraine. As a result,
martial law was declared in the country. For more
than six months since the beginning of the
invasion, Ukraine has experienced large-scale
destruction. According to the report prepared by
the World Bank, the cost of reconstruction of
Ukraine and its economy is more 349 billion
dollars (DW, 2022). As a result, the world
economy found itself on the brink of a global
crisis, the consequences of which will be felt by
all, without exception, countries of the world.
Methodology
The methodological and theoretical basis for the
study consists of the fundamental provisions of
economic theory regarding global economic
crisis, the scientific works of leading domestic
and foreign scientists on the issues of the
development, and spread of the crisis.
In particular, dialectical and historical methods
are used to generalize the theory of global
economic crisis, to determine its nature and to
highlight its features.
Qualitative and quantitative comparison method
is applied to clarify the peculiarities of the course
and consequences of the economic crisis in
Ukraine, Latin American countries and other
countries of the world.
Normative and dogmatic method helps to
identify the mechanisms of counteraction to the
Musiienko, O., Kapustnyk, V., Arbeláez-Encarnación, T.F., Rojas-Bahamón, M.J., Arbeláez-Campillo, D.F. /
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challenges of the global financial crisis in
Ukraine.
The method of factor and structural analysis
makes it possible to reveal the impact of the
economic crisis, caused by the war in Ukraine, on
the economy of this State and of Colombia, as
according to the UN, the invasion of the russian
federation caused the increase in poverty in
Colombia (the poverty rate is expected to rise
from 36.3 % to 38%).
Modelling method is used to estimate the global
consequence of the economic crisis and the
further GDP development in 2022 and 2023.
Forecasting method is applied to propose the
measures that will contribute to overcoming
rapid development of the global economic crisis,
caused by the war in Ukraine.
Literature Review
Among the foreign scientists who studied the
issue of the crisis in the economy, we can
highlight Arthur Spiethoff (1902), who studied
the causes of cyclical processes in the economy,
and, as a result, the onset of the crisis. He noted
that the signs of the crisis are over-accumulation
of capital and a decrease in wages. Reduced
incomes of the population cause a reduction in
consumer services, which leads to a crisis.
The research by Fischer, Dornbusch and
Schmalensee (1988) draws our attention to
another definition of a crisis in the economy;
according to them, it is breaking the balance of
various nature, from monetary and fiscal policy,
the emergence of new products and methods,
rising prices for oil and raw materials to changing
people’s consumer preferences and workplaces.
That is, there is a violation of the balance of
supply and demand in all spheres.
The economist John Maynard Keynes (1936)
noted that the understanding of the economic
crisis is expressed not in the increase in interest
rates, but in a sudden drop in the efficiency of
capital. He is one of the first who proved the need
for State intervention in the economic sphere to
overcome the crisis.
Among the domestic scientific researchers, we
can highlight Chukhno (2010, p. 5), who believes
that the crisis is one of the forms of economic
development, during which outdated equipment
and technology, the organization of production
and labor are eliminated, and the space for
growth and the establishment of a new one is
revealed.
According to Ostapyshyn (2013, p. 115), crisis is
breaking of the balance in the development of the
economic system, which leads to changes in the
form of its organization, to its transition to a new
state or to the cessation of existence.
According to Bilodid (1973, p. 343), crisis is a
sudden change in the usual state of things;
breakdown, aggravation of the situation; in the
economy, it is periodic overproduction of goods,
which leads to a sharp aggravation of economic
benefits: a reduction in production, disruption of
credit and monetary relations, mass
unemployment, etc.
Results and Discussion
Having analyzed the views of a number of
researchers and scientific sources, we can come
to the conclusion that the economic crisis has the
following features:
1) intervention in the system development;
2) overproduction of goods;
3) massive bankruptcies;
4) reduction of individual productions;
5) salary reduction;
6) increase in unemployment;
7) high rates of inflation;
8) growth of social tension;
9) disaster to the monetary system;
10) long-term effect;
11) negative character.
As Sushchenko (2015, p. 58) correctly notes, the
economic crisis is also characterized by the
disruption of the macroeconomic balance, an
imbalance of interacting structures;
overproduction followed by a fall in production
volumes; accumulation of commodities in
wholesale trade; falling commodity prices;
decline in company income and living standards.
Consequently, in our opinion, economic crisis is
a sudden decrease (fall) of the country’s
economy, which is caused by a financial crisis
happened under the influence of internal and
external economic and political factors.
Unfortunately, there are no accurate data that
would reveal the current economic situation in
Ukraine. But we have tried to conduct our own
analyzes, based on statistical studies.
As for CPI inflation accelerated by 10.7% year
on year in February (study by the State Statistics
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Service of Ukraine (2022). In March, it was
13.7%, and in April it was already 16.4%. This
growth is due to the disruption of supply chains,
uneven demand, increased business expenses,
and the physical destruction of business assets
during the war. According to the Center for
Economic Strategy, by the end of 2022, prices
may rise by another 10 – 15% (Zhyrii, 2022).
As for the labor market, it is gradually
recovering. But the number of applicants exceeds
the number of vacancies, therefore, this entails a
reduction in wages. In April, 54% of enterprises
had to retain fewer staff, and 34% had to pay
lower salaries. The number of enterprises
completely shut down in late April was almost
halved – from 32% to 17% (Yudina, 2022).
Due to occupation and mining, about 4.5
thousand hectares of land were sown.
Agricultural enterprises suffer great losses due to
the removal of grain, destruction of machinery by
the occupiers, and the land’s unfit for sowing.
There is a shortage of fertilizers, plant protection
products, etc. (Uhniva, 2022).
The reduction of economic activity led to the
formation of a significant budget deficit. It is
financed by the placement of military bonds of
the domestic State loan (for March – April 135
billion UAH were raised, of which 70 billion
UAH were purchased by the National Bank of
Ukraine) and international aid (grants and
bilateral loans). As for the provision of bilateral
agreements and grants we can highlight: the EU
(132 million euros), the United States (about 10
billion dollars), Germany (1 billion euros), Great
Britain (128 million euros), Lithuania (5 million
euros) and other countries, excluding periodic aid
packages (Ministry of Finance of Ukraine,
2022a).
Expenditures in the country increased
significantly owing to military needs and social
programmes, as well as the reconstruction of the
regions. Instead, the monthly deficit of the State
budget is about 5 billion dollars (Ministry of
Finance of Ukraine, 2022b).
Thus, we have considered how the war affects the
socio-economic situation in Ukraine, but whether
the negative effects are confined to the territory
of our State? Clearly, not.
We can observe that the war in Ukraine is a key
factor affecting the state of the economy both
inside and outside the country. A number of
researches by the economists, journalists and
international organizations testify to this.
Thus, Josep Borrell, the EU High Representative
for Foreign Affairs and Security Policy (2022),
have stated that “the negative consequences of
the war in Ukraine have the greatest impact on
the countries of the European Union. The war in
Ukraine is accompanied by a sharp increase in
inflation under the pressure of prices for food,
energy and basic essential goods. Inflation has
already increased throughout 2021, and the war
in Ukraine in 2022 only accelerated it. If we pay
attention to those regions of the world that do not
produce energy, do not import food, we can see
their suffering. For example, in Latin American
countries, the Covid-19 pandemic has already
weakened the economy, and the war in Ukraine
will only accelerate serious economic changes.
That is, the economic perspective of many
countries of the world will have global negative
social, economic and political consequences that
will arise as a result of the war”. That is, there are
real reasons to believe that the war in Ukraine can
cause a global economic crisis.
According to a study by the World Trade
Organization (WTO) from 12 April 2022, the
most immediate consequence of the crisis that we
are witnessing has been a sharp rise in the prices
of goods and services. Despite relatively small
fractions in world trade and production, Ukraine
is a key supplier of essential goods, including
food, energy commodities, fertilizers, etc. If the
transportation of vital goods is interrupted, it
could have dire global consequences for the food
security of the poor countries (World Trade
Organization, 2022).
WTO Director General Ngozi Okonjo-Iweala, in
his turn, noted that “the war in Ukraine caused
not only enormous human suffering, but also
damage to the world economy at a critical
moment. The impact of the war is felt all over the
world, particularly in the countries with a low
level of economy. But now is not the time to
reduce supplies and raise prices – in times of
crisis, more trade is needed to ensure access to
basic necessities. And dividing the world
economy and turning away from the poorest
countries will not lead neither to prosperity nor
to peace” (World Trade Organization, 2022).
According to the WTO’s modeling of further
GDP development in 2022 and 2023, global GDP
is expected to grow by 2.8% in 2022, which is 1.3
points below the previous forecast of 4.1%.
Growth is set to reach 3.2% in 2023, close to the
3.0% average between 2010 and 2019.
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Production in the Commonwealth of Independent
States (CIS) region, excluding Ukraine, is
expected to drop sharply by 7.9% before a 12.0%
decline in the region’s imports. This study was
based on the following elements: 1) the direct
impact of the war in Ukraine, including the
destruction of infrastructure and the increase in
trade costs; 2) sanctions introduced against the
aggressor state; 3) weakening global demand due
to lack of confidence (World Trade Organization,
2022).
The World Bank (2022) notes in its report for
April 2022 that “according to the forecasts, the
volume of production in 2022 will decrease by
4.1%”. The war in Ukraine has worsened the
world’s recovery from the Covid-19 pandemic,
and its economic consequences are being felt
across many sectors, including commodity and
financial markets, trade and migration links, and
investor confidence. Supply shortages and higher
energy and food prices will accelerate inflation,
affecting the entire world. The countries most at
risk are those with high current account deficits
or a significant share of debt nominated in
foreign currency. It will be hard for them to
prolong the debt. Prolonged conflict can increase
human and economic costs, political uncertainty,
fragmentation of regional integration, and
destruction of important trade and investment
ties”.
According to the Report by the Organization for
Economic Co-operation and Development
(OECD, 2022), “the war in Ukraine triggered a
cost-of-living crisis, targeted the world economy
for inflation as a result of soaring prices for
energy and food prices, and poses a major risk of
a food crisis in poor countries of the world.
Before the war, the world economy was on the
way to recovery. After the full-scale invasion of
the russian federation into Ukraine, this process
has stalled”.
That is, we can conclude that the impact of the
war in Ukraine on the world’s economic system
is decisive one and could trigger a global
economic crisis that would be prolonged and
destructive for all countries. The term “global” is
synonymous with “world”, therefore absolutely
all countries of the world will experience the
consequences of the war in Ukraine, which will
be expressed in the economic crisis.
Using the example of the countries of the Latin
American region, we will try to consider this
situation in more detail.
A Reuters study indicates that the risks facing
Latin American countries include rising
inflation, including food inflation, which could
trigger social unrest (Campos & Nomiyama,
2022).
The World Food Program of the United Nations
(WFP) (2022) predicts that many countries in
Latin America are already facing a shortage of
fertilizers, and crops in Brazil are particularly at
risk. According to the experts, almost 50 million
people in 45 countries are on the verge of
starvation.
According to the UN, the invasion of the russian
federation into Ukraine caused the increase in
poverty in Colombia and other Latin American
countries. The United Nations Economic
Commission for Latin America and the
Caribbean (ECLAC, 2022) declared in its report
that it expects the poverty rate in Colombia to rise
from 36.3 per cent to 38 per cent; that is, almost
880,000 people will become poor.
The projected increase in poverty in Colombia
and the rest of the region will mainly be driven
by “uncertainty, inflation (especially in food and
energy) and a slowdown in economic activity and
trade. That is, the region is facing a domestic
situation characterized by a sharp economic
slowdown, rising inflation, slow and incomplete
recovery of labor markets, leading to an increase
in poverty. As a result, 7.8 million people are
projected to join the 86.4 million others whose
food security is already at risk (ECLAC, 2022).
According to ECLAC (2022), the sharp increase
in food prices associated with the war in Ukraine
will have the greatest impact on poor people who
have not yet been able to recover from the
Coronavirus pandemic.
Colombia’s statistical agency DANE reported
that inflation in May was 9%. There was a 21.6%
increase in prices for food and non-alcoholic
beverages (Alsema, 2022). This indicates that the
economic crisis in this region as a result of the
war in Ukraine is rapidly developing.
Another urgent issue related to the global
economic crisis is the “grain agreement” –
unblocking of Ukrainian ports for the export of
grain. It was concluded on 22 July 2022 in
Istanbul between Turkey, the UN and Ukraine,
and allowed commercial and cargo ships to leave
Ukrainian ports (Odesa, Chornomorsk and
Pivdennyi) and deliver agricultural products to
various countries around the world. Since the
establishing of “grain corridor”, more than 177
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ships with wheat, corn, and oil (approximately 4
million tons of agricultural products) left
Ukrainian ports to the EU States, Asian and
African countries. The validity period of this
agreement is 120 days from the moment of
concluding (Rail.insider, 2022). It will be
automatically extended unless either party
indicates that they wish to terminate it. But what
are the guarantees that the aggressor country will
comply with all the terms of the agreement?
None.
On 23 July, 2022, after signing the agreement,
russia launched a missile attack on the Odesa
trade port. According to the UN, “maybe it didn’t
technically break the contract, but the
consequences caused by the strikes affect
everything – people’s lives and destinies,
infrastructure, economy”.
The Minister of Foreign Affairs of Ukraine
Dmytro Kuleba stressed in this regard that as part
of the work of the 77th session of the UN General
Assembly, Ukraine should expand co-operation
with other countries, primarily African, Asian
and Latin America ones. He pointed out that
Ukraine maintains a constant dialogue with
European and American partners “we are
working to expand the circle of this
communication thanks to African, Asian, Latin
American countries. Those issues that are
relevant for us – sanctions against Russia,
weapon, trade, functioning of the grain corridor
– all of them are at the “heart” of our directives”.
According to him, the General Assembly
provides an opportunity to “communicate with
those parts of the world, which we do not have
constant contact with” That is, an extended
program of such communication with the
countries of Asia, Africa, Latin America and the
Pacific region is expected (Ukrinform, 2022).
As for the specific issues that the delegation is
working on, it is the creation of coalition to
protect the grain corridor, the Minister added.
Active communication with the countries of the
“Global South” is aimed at getting them to
protect the grain corridor, because it affects
prices and makes it possible to avoid hunger in
the poorest countries (Ukrinform, 2022).
Among the adopted legislative acts and
resolutions aimed at solving the problems of the
economic crisis caused by the war, the following
ones can be highlighted:
1) the Law of Ukraine “On the State Budget of
Ukraine for 2022” was supplemented by the
article on the transfer of funds from the State
Road Fund to fulfill debt obligations on
loans received by the State or under State
guarantees, as well as to meet the needs of
the defense sector (Law of Ukraine
No. 2135-IX, 2022).
2) Resolution No. 2141-IX (2022) “On the
Appeal of the Verkhovna Rada of Ukraine to
the United Nations, the European
Commission, the European Parliament,
other international organizations and their
parliamentary assemblies, the parliaments
and governments of the European Union and
NATO Member States, the parliaments and
governments of the democratic States of the
world regarding the necessity to take
additional joint measures to stop the
aggression of the Russian Federation against
Ukraine and prevent the expansion of this
aggression to other European countries;
3) Law of Ukraine No. 2143-IX (2022) “On the
ratification of the Guarantee Agreement
(Additional financing for combating
COVID-19 within the Access to Long-Term
Financing Project) between Ukraine and the
International Bank for Reconstruction and
Development”;
4) Resolution of the Verkhovna Rada of
Ukraine No. 2185-ІХ (2022) on the
Adoption of the Draft Law of Ukraine on
compensation for damage and destruction of
the selected categories of immovable
property as a result of hostilities, acts of
terrorism, sabotage caused by the military
aggression of the Russian Federation;
5) Law of Ukraine No. 2257-ІХ (2022) “On
making changes to some legislative acts of
Ukraine regarding increasing the
effectiveness of sanctions related to the
assets of certain individuals”;
6) Resolution No. 2288-ІХ (2022) “On the
approval of proposals regarding the
application of personal special economic
and other restrictive measures (sanctions) to
the representatives of the Russian Orthodox
Church”;
7) Resolution No. 2329-ІХ (2022) “On the
adoption of the Draft Law of Ukraine on
Amendments to the Law of Ukraine “On the
State Budget of Ukraine for 2022” regarding
the financing of measures aimed at
regulating relations on the natural gas
market and in the field of heat management
during the war and subsequent recovery”;
8) Resolution No. 2424-ІХ (2022) “On the
formation of the Temporary Special
Commission of the Verkhovna Rada of
Ukraine on the issues of monitoring the
receipt and use of international logistical
assistance during martial law”;
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9) Resolution No. 2478-ІХ (2022) “On the
Formation of a Temporary Special
Commission of the Verkhovna Rada of
Ukraine for Preliminary Consideration of
the Issues Regarding Violations of
Legislation That Could Lead to Crisis
Phenomena in the Energy Market of Ukraine
on the Eve and During the Armed
Aggression of the Russian Federation
Against Ukraine;
10) Resolution No. 2496-ІХ (2022) “On the
Address of the Verkhovna Rada of Ukraine
to the European Union and the countries of
the Group of Seven, as founders of the
Financial Action Task Force on Money
Laundering (FATF), regarding the
strengthening of the fight against money
laundering, including funds of criminal
origin, with the financing of terrorism, with
financial mechanisms used by the Russian
Federation to avoid sanctions and continue
the invasion of the territory of Ukraine”;
11) Resolution No. 2504-ІХ (2022) “On the
Appeal of the Verkhovna Rada of Ukraine to
the members of the Financial Action Task
Force on Money Laundering (FATF)
regarding the exclusion of the Russian
Federation from among FATF members and
its inclusion in the list of high-risk
countries”.
At the international level, among the adopted
legal decisions on solving problems in the
economic sphere as a result of the war in Ukraine,
the following can be highlighted:
1) Approval of the EU sanctions package in
response to Russia’s aggression, including:
the introduction of a ban on financing the
Russian Federation, its government and the
central bank; a ban on the import of goods
from the non-controlled territories of the
Donetsk and Luhansk regions of Ukraine,
restrictions on trade and investments, a ban
on the provision of tourist services; freezing
of assets of 27 known natural and legal
persons, who participated in undermining
and threatening the territorial integrity,
sovereignty and independence of Ukraine
(European Council, 2022а);
2) Approval of the EU economic sanctions,
including: expansion of existing financial
restrictions; prohibition to provide services
on shares of Russian companies on EU
trading platforms; prohibition to accept
deposits exceeding a certain value;
prohibition of keeping accounts of Russian
clients in the Central Securities Depositories
of the EU, as well as the sale of securities
denominated in euros; prohibition of the
sale, supply, transfer or export to Russia of
certain goods and technologies from oil
refining; ban on the export of goods and
technologies in the aviation and space
industry; ban on the sale of all aircraft, spare
parts and equipment to Russian airlines
(European Council, 2022b);
3) prohibition to carry out operations with the
central bank of Russia;
4) prohibition of certain business services
(directly or indirectly) such as accounting,
auditing, statutory audit, tax consulting
services, IT consulting, legal consulting,
architectural and engineering services,
business consulting and management
services, as well as services from public
relations for the government of the Russian
Federation, as well as legal entities,
organizations or bodies based on the
territory of Russia;
5) blocking foreign exchange reserves by
excluding the main Russian banks from the
SWIFT system;
6) a complete ban on the participation of
Russian citizens and organizations in
procurement contracts in the EU;
7) restrictions on financial and non-financial
support of Russian business entities that are
state-owned or under state control within the
framework of EU, Euratom and Member
States programs. There will be any new
contracts or agreements with Russian state
bodies or related persons (European
Commission, 2022);
8) creation of the "Trading Group on Freezing
and Confiscation" to study the links between
assets belonging to the persons subject to the
EU sanctions and criminal activities
(European Commission, 2022).
That is, at the national and international level, the
leadership of our country is doing everything
possible to solve the problem of spreading the
global economic crisis, which awaits the world as
a result of the war in Ukraine.
Conclusion
Analyzing the above, we can state that the war in
Ukraine can be the cause of global economic
crisis, which is expressed in: bankruptcy of
enterprises, reduction of production, reduction of
wages, increase in unemployment, hunger,
humanitarian crisis, inflation, economic
slowdown, destruction of political, economic,
social ties, etc.
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Among the measures that will contribute to
overcoming rapid development of the global
economic crisis as a result of the war in Ukraine,
in our opinion, are the following:
1) support for Ukraine in all spheres, in
particular defense and financial ones;
2) support to industries and producers:
measures to increase production, removing
barriers to resource trade;
3) orientation of the State and world policies to
support farmers and all industries;
4) forging of an international consensus (G-7,
G-20);
5) avoiding or reducing export restrictions that
increase the prices for goods; import
restrictions in developing countries;
6) expansion of targeted programs of social
protection;
7) change or improvement of food systems, etc.
As Antonio Guterres, UN Secretary General
correctly pointed out, “there is no way to solve
this global economic crisis without solving the
economic crisis in developing countries. The
global financial system should rise above its
principles and fully use all its tools to provide
support and aid to vulnerable countries. We must
act now to save our lives and solve the coming
global crisis” (UN, 2022).
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