The energy and food crises, the consequences of the war in Ukraine or the climate crisis have focused the debates on the first day of the Davos Economic Forum.
The energy and food crises caused by the war in Ukraine have led to pessimism in the Davos World Economic Forumthe major global gathering of political, economic and social leaders, who struggled to propose concrete solutions on the first day of the sessions.
The main uncertainty lies in the fact that no one can predict how long the Russian aggression against Ukraine will last and how far the first country will go in its territorial ambitions. This raises fears that governments will opt for somewhat desperate responses, such as increasing investment in fossil fuels to have alternative sources to Russia’s.
“We should not try to justify a new wave of long-term fossil fuel investment,” warned the director of the International Energy Agency (IEA), Fatih Birol, who has previously opted for renewable energy, for energy efficiency and for increasing nuclear production in capable countries.
It was more condescending to take advantage of existing oil and gas fields in response to the current situation, as long as it is short-term, not long-term.
The exponents in the early debates of this 51st edition of the Davos Forum have recognized that the resolution of the energy crisis will entail very high costs and sacrificesespecially among importing countries.
The energy crisis is one of the economic factors of concern to participants in today’s meetings, but not the only one. The decline in economic activity – the result of uncertainty and risk aversion among economic actors -, the increase in inflation and the decrease in income have also come to light.
If governments and businesses were counting on an economic recovery in 2022 after the Covid-19 pandemic was overcome, the crisis in Ukraine has cleared that expectation. Growth is expected to be very moderate in all regions, at best.
The scenario of pessimism completes it the food crisisin which the war in Ukraine is not the only cause, but has acted as a kind of coup de grâce by pushing the price of food very quickly to unprecedented heights.
The climate emergency it has multiplied and exacerbated drought in several countries, where three to four growing seasons have been ruined, putting millions of people at risk of famine.
According to the analysis of the experts in the Forum, the world will face a larger increase in food prices in the next ten to twelve months if the scarce supply of fertilizers, the drop in production and the blockade of the exit Ukrainian grain shipment are not solved.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
