LONDON, ENGLAND — Most of my family and friends back home in the Philippines believe that the escalating conflict between Russia and Ukraine is nothing more than a distant crisis in a faraway land.
Although approximately 9,000 kilometers and six timezones separate us from the epicenter of the crisis, we are not spared from bearing the brunt of the inevitable economic repercussions that could result from the brewing conflict, and the ongoing political fallout. This will hurt our wallets.
While trade between the Philippines and Ukraine is relatively small compared to that with other economies, the impact of this conflict on the rising prices of commodities could leave a trail of destruction on our personal finances.
Remember what our economics teacher taught us in class: the world’s economies are intertwined and interdependent.
Technological advances whether in transportation, communication, or its other applications in optimizing the supply chain is a major factor enabling countries to exchange more goods and services than ever before.
We consume what others produce, and produce what others consume.
Russia and Ukraine are both important players in the global economy. While Russia is a major source of gas and fuel, Ukraine is among the world’s largest exporters of food and agricultural products such as sunflower oil, wheat, barley, and rye.
Instability and uncertainty arising from the geopolitical tensions in the region could result in shortages, and jack up prices for these commodities.
Truth be told, we have already felt the impact of this crisis on the increasing prices of gas as early as last year.
We will continue to feel its pinch as the prices of our favorite supermarket and grocery finds threaten to rise as well.
If there is one thing I’ve learned from working in the fast-moving consumer goods industry before, it’s this: price increases are almost always borne by the shopper. Don’t even get me started on inflation.
As prices increase while your income remains the same, you may not be able to buy as much as you did before with the same monthly grocery budget. For many of us, this is definitely bad news.
Yet, for some of us, it’s not just our wallets that will hurt but our emotional and mental well-being as well. Some of us have family or friends who may be among the 300 to 400 overseas Filipinos who are currently living and working in Ukraine.
This conflict does not only mean their jobs are at stake but more importantly, their lives and their safety.
While voluntary repatriation from the conflict zone is an option made available by the Department of Foreign Affairs, there are those who opt to stay to be able to keep earning for their families back in the Philippines.
For those who are directly affected, it’s not as easy as deciding between having a burger or spaghetti. For loved ones in the Philippines, it’s a terrifying time to be apart.
Conflicts such as this yield no winners. Everyone is affected in one way or another. Everyone suffers, although at varying degrees.
Because we live in a world where our lives and economies are knitted together by the forces of globalization such as technology and trade, we can’t simply say we are safely spared from what happens to others thousands of kilometers away. All global issues have a local dimension and vice versa. What happens over in Ukraine can surely be felt back home.
So before you heave a sigh of relief, thinking that the conflict in Ukraine doesn’t affect you, try gassing up or go grocery shopping, and maybe this issue you will feel much closer to home.
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Author’s email: [email protected]
