WTO Retreating From Global Trade

  The recent conflict between Russia and Ukraine has left the other dominant nations in power, with no other choice but to impose sanctions on Russia. Although this makes Russia not obtain certain goods, it also affects the World Trade Organization (WTO) because Russia and Ukraine are responsible for a large amount of the world’s oil and European and African countries food supply. A fragmentation of the global economy has only begun because of the actions that Russia has taken against Ukraine. The chief of the WTO is wary that if fragmentation of the global economy continues, then some countries would experience higher transaction costs, balance of payments in distress, and it will make solving international issues such as climate change more difficult. 

Fragmentation on the global economy will continue as long as the conflict in Ukraine continues. Right now African countries are having shortages on their food supplies because Ukraine is unable to export goods. Sadly the WTO is unable to act with urgency because most of the countries that hold a majority of the power in the world, are part of NATO. World powers therefore can do very little except export themselves to make up for the losses that the African countries are experiencing. According to an article by devdiscourse, “Russia's invasion of Ukraine has delivered a further "huge negative shock" to sub-Saharan Africa, driving food and energy prices higher and putting the most vulnerable people at risk of hunger…” The importance of recognizing the conflict between Russia and Ukraine, does not occur by evaluating the two countries directly involved, but to recognize the indirect effects that occur. The WTO is supposed to make trade easy amongst all countries without discrimination, but how can they claim this when the rich dominant countries barely contribute to making up for losses that occur in the economy. It is easier said than done, but with the little leftover resources surely can help the suffering countries that the WTO can not help in a fragmented global economy.

The continuing fragmentation of the global economy will ensure the global market to climb because of shocks that will occur due to the Russia Ukraine conflict. African countries have already suffered with price increases that have left some people in situations that exploit them for their income. These poorer nations cannot recover as easily from a shattered global economy, not only does it hurt the goods being imported, but it hurts the pricing which can eventually lead to business deals being lost between countries. The WTO must be reorganized or reformed in order to be prepared for problems to arise in the future as they have now between Russia, Ukraine, and other African countries.