Pandemic and War Reverse Decades of Global Poverty Reduction
TimeDec 01, 2022
Report: Energy Costs Could Drive 141M to Extreme Poverty
story
Image copyright: Alex Lawson/The Guardian
The Facts
A study published in Nature Energy found that soaring energy prices triggered by the Russia-Ukraine war could push up to 141M more people around the globe into extreme poverty. The conflict has increased the cost of energy for households globally by between 62.6% and 112.9%.
Researchers from the Netherlands, the UK, China, and the US, who modeled the impact on households in 116 countries, are calling for energy assistance to vulnerable households during the current crisis — emphasizing that many people will need food and other forms of support.
The Spin
Anti-Russia narrative
The blame for soaring prices is laid squarely on Russia and President Putin's invasion of Ukraine. Soaring costs of food production — which drive inflation both in the developed and developing world — have now made famine a reality in a sizable portion of Africa. Furthermore, speculation by financial traders on food prices also drives prices up further, and climate change is yet another problem. With multiple problems already stretching resources thin, food supplies will not be safe until Russia ends its invasion.
Pro-Russia narrative
The West is being deceitful about the cause of the global food crisis. The problem is not Russia’s invasion of Ukraine but rather the West’s attempt to cripple Russia’s economy as punishment. By doing so, the price of grain, cooking oil, fertilizer, and energy are soaring, hurting global growth. Western sanctions also tipped agricultural markets towards the edge of the abyss by disrupting payment systems, shipping, and insurance, preventing Russian exports of food and fertilizer to the Global South.
