Sri Lanka is in the midst of its worst economic crisis in years. Increasing prices of basic food items such as milk, which are essential to regular food businesses and meals, have been caused by the acute shortage of US dollars in the country. With rising prices and high external debt, the island country faces a double whammy. Sri Lanka’s fuel shortage, caused by a shortage of foreign exchange, has forced tens of thousands of people to stand in long lines at petrol pumps for hours due to an acute economic and energy crisis.
Daily power outages also affect people for long periods of time. Even before the pandemic dried up the tourism funds, Sri Lanka’s debt spiral was unsustainable, according to economists. Sri Lanka has been forced to undergo a growing economic crisis due to a number of socio-political factors.
1. Afghanistan;
The economic and humanitarian crisis in Afghanistan has deepened since the Taliban took control in August. Afghanistan has been suffering from acute malnutrition since the US military withdrew, posing threats to food security. UN officials estimate that at least 55 percent of the population will experience food insecurity by March 2022. Humanitarian organizations have repeatedly warned about the escalating crisis and its impact worsening as thousands of Afghan children starve to death every day.
2. Venezuela;
The economic crisis in Venezuela has lasted for decades. Venezuelans are food insecure to the point of needing urgent food supplies, according to the World Food Programme (WFP). Further, the pandemic induced by Covid-19 has worsened the country’s humanitarian and economic crisis. Fuel, electricity, and clean water shortages have caused several riots in recent years, forcing hundreds of migrants to flee once more. The crisis began under Hugo Chávez and has worsened with a surge of political opposition to Nicolás Maduro.
3. Middle East;
Middle East conditions have deteriorated in more countries and in more ways over the past two years, says AP. Lebanon, Syria, Iraq, Libya and Yemen are on the verge of a humanitarian catastrophe as poverty rages and the region’s economy plunges. In the past, the UN General Assembly in New York was dominated by uprisings and wars in the Arab world.
4. Russia;
Russian President Vladimir Putin’s country is not only inflicting an economic catastrophe as a result of Moscow’s war on Ukraine. In addition, global economic ramifications threaten financial markets and make life more perilous for everyone from Uzbek migrant workers to European consumers and hungry Yemeni families. Oil, natural gas, and metals from Russia are vital for the rest of the world, and higher prices for those commodities will hurt global economies. Nearly 40% of Europe’s natural gas and 25% of its oil comes from Russia. Europe faces a significant possibility of runaway inflation, another economic downturn, or both as a result of Russia’s war.
5. Sudan;
The cash-strapped African nation, whose economy has deteriorated further due to a military coup four months ago, announced that its currency will float early in March as economic conditions deteriorate. In Sudan, the Sudanese pound will be determined by banks and exchange firms based on supply and demand. The governor, Yahai Hussein Ganqoul, said there would be no interference from the central bank. As a result of a drop in the value of the pound, commodities and services will likely become more expensive. In February last year, Sudan devalued its currency, and in recent weeks the exchange rate spiked.
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