“The crisis will not end with the opening of borders” Yuriy Pyvovarov, Chairman of the Organising Committee of the KIEF
Unemployment and rising social inequality are among the long-term challenges facing humanity. Why the crisis will not end with the opening of borders and how developing countries prepare for a serious economic storm, read in the column of the Chairman of the Organising Committee of the Kyiv International Economic Forum Yuriy Pyvovarov.
The economist identifies the actualization of the following risks in the post-quarantine world:
- Unemployment. According to the UN, more than 160 million people may lose their jobs. The main problem is that jobs will not be able to recover after the crisis.
- Poverty. According to World Bank estimates, about 60 million people are at risk of poverty.
- Inequality: countries that are unable to print money are automatically left without the ability to fill their economies with national banknotes and become more dependent on the world’s dominant currencies. Countries that launch money in print, thereby reducing the value of the currency and rising inflation in less economically developed countries.
Opportunities for Ukraine in the postcoronavirus world:
- World companies are abandoning production in China. Ukraine has the opportunity to subdue the wave of the relocation of production from Asian countries and increase the share of foreign investment.
- The direction of domestic resources to stimulate the domestic economy — in particular, through priority procurement of domestic products and government support for small and medium-sized businesses.
Read more about the threats posed by the changing economic situation in the world due to the pandemic and how Ukraine is able to adapt in the light of events in the column for NV of the Chairman of the Organizing Committee of the Kyiv International Economic Forum Yuriy Pyvovarov.