Russia-Ukraine War

Importance of Peace for Economic Development based on Russia-Ukraine War

On April 11, 2022, the World Bank said that the ongoing Russian-Ukrainian war would shrink Ukraine’s economy by 45%, following a shutdown of businesses, exports, and imports (Associated Press, 2022). The war began after Ukraine separated from the Soviet Union to join NATO. Based on news sources, the war has already affected the economy in the two countries and is taking root in affecting the global economy (Finnis, 2022). According to Finnis (2022), president Putin is worried about Ukraine joining NATO as that would threaten Russian power in the East. However, in this case, the topic of interest is the impact of the war on the economy of the two countries, more especially Ukraine. The main argument is that instead of putting the economy at risk that will threaten human survival, Russia and Ukraine should negotiate to settle their differences.

Based on the article, the Russian economy is also getting into a recession following export and financial sanctions by western countries. According to the Washing Lender’s post in its economic part, the war is estimated to have twice the economic damage that the covid-19 pandemic had on the economy (Duffy, 2022). The World Bank report said that most of Ukraine’s infrastructure had been destroyed, which is why its economy will be highly impacted. For instance, Ukraine serves as a significant exporter of agricultural products such as wheat, but planting and harvesting have been disrupted due to the war.

It means that the global economy is also at risk. According to Business Insider (2022), the war will see many Russians living in poverty due to economic sanctions. This is backed up by the World Bank report that says the economic destruction will enormously hit the two countries and extend to the rest of the world. Additionally, most economies have already started feeling the impact of the war. While some had begun recovering from the covid-19 pandemic after effects, the Russian-Ukrainian war has revived the recessions. For example, food prices have gone up, and some countries are already witnessing fuel shortages.

As much as Russia is trying to preserve its power over the East and regain control, it is not logical to put one’s country and the world at risk of economic recession. It does not sit well with me, and I find it illogical when a president is facilitating the invasion of another country. Yet, the issue can be handled through other means like negotiation. This opinion does not seek to criticize president Putin but tries to discuss the issue logically regarding its impact on the economy.

Backing up my argument, the main reason for having a president leader is to enable the forward going of countries, including the economy. It does not only apply to presidents but to all leaders who lead some followers. One of the most remarkable leadership ideas is to bring people together as one (Kotter, 2017). However, what the Russian president is doing by invading Ukraine is facilitating an economic recess, not just in his country but also globally. Since the president has witnessed previous wars and seen their impact on the economy, what prevents him from negotiating for peace with Ukraine? Does it mean that invading a country will resolve the differences they have? It is evident from news updates that the war is not solving the differences but increasing the gap between them. For instance, Ukrainians allegedly poisoned pastries early this month, and the pastries were given to Russian soldiers, leaving two dead and others hospitalized (Salo, 2022). Such an incidence implies that the two countries are playing tit for tat, which only worsens the situation without solving anything.

Furthermore, better economic conditions prevail where there is peace. Without peace, it is almost impossible for an economy to upturn because people are not working, and the flow of goods and services is disrupted (Cissé, 2017). This is why the global economy has also suffered immensely after the war between the two countries broke since Russia is one of the largest oil exporters. Considering that fuel is one of the most precious goods that run many industries, the economy is recessed. When the war continues, the world at large will also suffer in all aspects.

The only way to get Ukraine, Russia, and the global economy at the normal peak is to embrace peace and not war. War and chaos will only cause a deep recession that might be hard or take longer to move out. Given that the World Bank has speculated the shrinking of Ukrainian by 45%, and other sources have acknowledged the impact of the war on the Russian economy, it means the global economy is also at stake. Peace is essential for the economy and survival of human beings in terms of psychological needs. Presumably, what the world needs now is peace. Following the after-effects of the covid-19 pandemic on the economy, Russian and Ukraine needs to negotiate and find a peaceful place to rest their interests. By this, the economy will be back to normal as the flow of goods and services that have been stopped will resume. Therefore, peace should be the number one concern that president Putin and his allies should consider for the sake of the Ukrainian and global economy.

References

Associated Press. (2022, April 11). Russia’s War to Shrink Ukraine Economy 45%, World Bank Says. US News. https://www.usnews.com/news/business/articles/2022-04-11/russias-war-to-shrink-ukraine-economy-45-world-bank-says

Cissé, B. (2017). Why Peace and Security are Key to Economic Emergence. The Emergence, 19.

Duffy, K. (2022, April 11). Putin’s former chief economic adviser says the number of Russians living in poverty will probably double, maybe triple, in the wake of the Ukraine war. Business Insider Africa. https://africa.businessinsider.com/news/putins-former-chief-economic-adviser-says-the-number-of-russians-living-in-poverty/p78wnvy

Finnis, A. (2022, February 2). Why Russia and Ukraine are fighting, and the history of the conflict explained. inews.co.uk. https://inews.co.uk/news/world/russia-ukraine-fighting-why-conflict-explained-putin-invasion-full-scale-war-1435024

Kotter, J. P. (2017). What leaders really do. Leadership Perspectives, 7-15. https://doi.org/10.4324/9781315250601-2

Salo, J. (2022, April 3). Russian soldiers were reportedly killed by the ukrainians’ poison-laced pastries. New York Post. https://nypost.com/2022/04/03/russian-soldiers-killed-by-pastries-poisoned-by-ukrainians/