Ukraine Crisis hurting the global economy, G20 leaders in strong deploration

The two-day summit in Bali hosted world’s 20 biggest economies. The leaders at large have deplored the war between Russia and Ukraine. They have called out in very strong terms that the war in Ukraine is hurting the global economy.

The leaders of the G20 met in Indonesia for a two-day summit .They raised concerns regarding the Ukraine crisis, and asked for immediate and unconditional withdrawal of the Russian troops. A declaration was adopted by the end of the summit for the same. 

The leaders talked to about passing the interest rates carefully to avoid spillovers. They also cautioned against the increased volatility in currency which could be escalated due to the Ukrainian crisis.

Russia was a part of the crisis, and also a G20 member was present in the summit, held on the Indonesian island of Bali. The declaration signed at the end of the two-day summit clearly condemned the ongoing war in Ukraine. 

Just like the UN resolution of March, the stands of India and China where ambiguous. 

The United States and its allies were keen on obtaining legal sanctions against Moscow’s intervention in Ukraine. To this direction, the Russian counterpart replied that the politicization of the summit was not fair.

The leaders also discussed issues of hunger and nuclear threats. Putin’s invasion of Kyiv plummeted the economy at global level and revived global divisions just like another Cold War Era. The world economy has already been crippled by the aftermath of the COVID-19 pandemic.

A draft of declaration was prepared, yet to be adopted, that took into acknowledgement the existing rift. The leaders of most of the nations condemned the war and put forward their concerns for the human sufferings and worsening of the existing frailities in the global economy.

Read – Ukrainian Missiles Behind Polish Deaths, No Direct Attack By Russia: Reports

Unparalleled Multidimensional Crisis

These G20 nations are the 20 biggest economies of the globe and account for around 80% of worlds gross domestic product, 75% of the international trade and 60% of the world population.

The G20 host this year Indonesia, focused on issues like inflation, hunger, and rising energy prices all were worsening by the Ukraine crisis. It pleaded the G20 nations to act as a catalyst to revive the global economy and prevent it from falling into another cold war situation.

The draft declaration proposed that the central banks should keep an eye on the global inflation and that the stimulus must be ‘temporary and targeted’ to prevent rising prices.

It also talked about sharing of fair burden on the existing debt. 

The declaration said that the global economy was facing an ‘unparalleled multidimensional crisis’ due to the ongoing war in Ukraine that has forced the globe into inflation and tightening of their monetary policies. 

The US officials wanted to let out a clear and strong message that the Russian invasion had an impact on the global economy. 

However, the leaders committed to avoid excessive exchange rate volatility. 

The leaders also discussed about the inadmissible use of nuclear weapons and that the international law and multilateral system must safeguard peace and stability. Hence the principles put forward in the Charter of the United Nations must be defended and adhered to. 

Earlier, the meeting scheduled was disrupted to discuss a missile attack in Poland, killing two people. The US and its allies gave out the information that the fire might not have been caused from the Russian counterpart. 

The meet also included all the G7 members. 

Other Highlights

Draft declaration proposed to condemn the ongoing war in Ukraine

Zelensky reassures his plan to end the crisis

Bali pleaed to end the political polarisation

Issues of inflation, tightening of fiscal policy and debt discussed

The gala dinner was skipped by the US president

The schedule got disrupted due to missile attack in Poland