Dear Editor
Dhaka Opinion Magazine
Dhaka
The alarming rise in global inflation, primarily driven by ongoing international conflicts such as the Ukraine-Russia and Israel-Palestine conflicts, coupled with the aftermath of the COVID-19 pandemic, poses a severe threat to the economic stability of nations worldwide. The surge in prices, especially of daily necessities, has pushed the cost of living to unprecedented levels. The pandemic immensely disrupted global supply chains. Though the world has recovered from the impacts of the pandemic, intensifying conflicts have aggravated the disruptions — leading to a dramatic increase in the prices of essential goods in the world. According to Forbes, the International Monetary Fund (central bank data) indicates that different countries such as Venezuela, Zimbabwe, Argentina, Sudan and Turkey had high inflation rates in January 2024.
Inflation is not merely an economic issue, it directly undermines the United Nations’ Sustainable Development Goal to eradicate poverty by 2030. But the impact of the rising inflation is most acutely felt in different developing and less developed countries in Asia, Africa, the Middle East and South America, especially where large segments of the population were already grappling with poverty. The soaring prices have made basic commodities unaffordable for many, plunging them deeper into financial hardship, and are creating a crisis where hunger, malnutrition, and poverty are more widespread. Additionally, the economic sanctions and product boycotts emerging from international conflicts have a domino effect, disturbing the economic equilibrium of nations not directly involved in the conflicts. The resultant economic turmoil, including rising inflation, is derailing the progress made toward poverty eradication, a cornerstone of the sustainable development goals of the United Nations.
Addressing the issues of inflation and poverty demands a global response — aligned with the United Nations’ sustainable development goals. Peaceful resolutions to ongoing international conflicts must be a priority, as continuous unrest only serves to exacerbate economic instability and hinder efforts toward poverty eradication. International organizations, including the United Nations, must play a pivotal role in facilitating dialogue and fostering cooperation among conflicting nations in resolving conflicts. But, importantly, addressing global inflation and poverty also requires strengthening global supply chains and promoting economic policies that cushion the blow of inflation on the most vulnerable populations. Among others, enhanced financial assistance, fair trade practices and cooperation among countries are imperative in this direction.
To combat global inflation and related crises effectively, governments worldwide should also implement measures that directly support those most affected by inflation. This includes increasing social welfare benefits, providing subsidies for essential items, and implementing tax relief programs for low-income groups. Simultaneously, investment in sustainable and local production methods is vital to reduce dependence on international markets, which are prone to fluctuations due to geopolitical tensions. Along with ensuring transparent financial governance, aligning national policies with the UN’s goal of eradicating poverty and putting emphasis on poverty reduction may be helpful in mitigating the current inflationary pressures and moving towards a more equitable and resilient global economy.
Sincerely
Md Maruf Hasan
PhD Candidate
International Islamic University Malaysia
Kuala Lumpur
Email:marufenglish021@gmail.com
DISCLAIMER: The views/opinions expressed are those of the LTE authors and do not necessarily reflect the official policy or position of the Magazine or its editorial team.
