Russia-Ukraine war has damaged global economy – Okonjo-Iweala

Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala says the ongoing war between Russia and Ukraine has “damaged the global economy”.

She spoke on Tuesday at a press briefing in Geneva at WTO headquarters to appraise the current state of global economy and the disruption the Russia-Ukraine war has caused.

According to her, worst hit are low-income nations who are experiencing shortage in food supply.

The former Nigeria’s finance minister warned that restricting trade as a form of sanction would “threaten the wellbeing of families and businesses”.

“The war in Ukraine has created immense human suffering, but it has also damaged the global economy at a critical juncture. Its impact will be felt around the world, particularly in low-income countries, where food accounts for a large fraction of household spending.

“Smaller supplies and higher prices for food mean that the world’s poor could be forced to do without. This must not be allowed to happen. This is not the time to turn inward. In a crisis, more trade is needed to ensure stable, equitable access to necessities. Restricting trade will threaten the wellbeing of families and businesses and make more fraught the task of building a durable economic recovery from COVID-19,” the Director-General went on to say,” Okonjo-Iweala said.

She said governments and multilateral organizations must work together to facilitate trade at a time of sharp inflationary pressures on essential supplies and growing pressures on supply chains.

“History teaches us that dividing the world economy into rival blocs and turning our backs on the poorest countries leads neither to prosperity nor to peace. The WTO can play a pivotal role by providing a forum where countries can discuss their differences without resorting to force, and it deserves to be supported in that mission,” she added.