Jayati Ghosh has a new article in Project Syndicate about the impact of the Russian invasion on Ukraine on the global economy, particularly on the developing world.
But the challenges are greater still in the developing world, leaving policymakers with even less wiggle room. The dramatic recent increase in oil prices obviously affects oil-importing countries directly, and will feed into all other prices through rising input and transport costs.
The tragedy playing out in Ukraine is also increasing global food prices, creating even more pain in developing countries where hunger had already increased dramatically during the pandemic. Before the war, Ukraine was the world’s fifth-largest wheat exporter, and also a major exporter of barley, corn, rapeseed, and sunflower oil. The prices of these commodities in global trade have risen significantly, adding to recent increases in crop prices generally.
