US research institute calls this recent Hungarian measure the worst possible
The Russian-Ukrainian war has already taken a serious toll on the economies and supply chains of many countries over the world. It is projected that approximately 40 million people could become deeply impoverished as a direct consequence of the military conflict in Ukraine.
Index published the findings of Center for Global Development (CGD), an American research institute that approximated that some 40 million people could become deeply impoverished following the war.
The institute expects a steep rise in energy and food prices, calling out Hungary’s governmental measure as the worst a country can do.
We previously wrote about the hardships of local agricultural workers who face difficulties procuring fuel in Hungary. These issues can further deteriorate the country’s situation. If you would like to know more, visit the following link:
Hungarian agriculture on the brink of collapse due to fuel shortage?
CGD said that due to the war, a drastic and long-term increase in food and energy prices may occur which will show resemblance to the 2007 and 2010 events when 44 million people became deeply impoverished.
In connection to the spiking food prices, the research institute called on the current Hungarian measure of banning export on grain at the beginning of March as an example.
“The reflex-like response of Hungary banning exports is a typical example of what not to do. Luckily, their decision will not affect the global supply chain too severely, however, politicians and decision-makers must not give in and should maintain openness,” – CGD said.
Another research conducted in Hungary shows that many people are already below the EU average when it comes to access to meat, fish or equivalent plant-based products. You can read about the country’s “food poverty” in greater detail in the following article:
Shocking! So many Hungarians can’t afford meat and fish
According to Index, the research institute compared the current Hungarian measures on wheat export ban to the ban on rice export in India and China back in 2007, which caused a global increase in rice prices.
“It is important that major food-producing countries other than Ukraine, maintain an open trade,” – the American research institute said.
Center for Global Development recommended a few solutions which can be implemented by political leaders and decision-makers, but they have highlighted that
sanctions against Russia must not include food products and fertilizers.
The research institute once again reiterated that export bans pose a threat and added that prices can increase even with open trade, and many countries might need new resources to meet demand.
Source: Index.hu, Daily News Hungary