The war between Russia and Ukraine – both major producers of food and energy commodities – has disrupted global production, trade and supply in these regions, leading to skyrocketing prices.
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Queen Maxima of the Netherlands told CNBC she was worried about the impact of rising food and energy prices on families, adding that this could lead to increased instability in some areas. area.
The war between Russia and Ukraine – both major producers of food and energy commodities – has disrupted global production, trade and supply in these regions, leading to skyrocketing prices.
According to the latest World Bank Commodity Market OutlookEnergy prices in 2022 are expected to increase by more than 50%, while wheat prices are forecast to increase by more than 40%.
“Food prices rising at the rate that we’re seeing, energy prices, will basically mean that many families will have three or two meals a day to have one meal a day. And this in turn, In fact, it’s probably going to be a source of further instability in other regions. So that worries me a lot,” Maxima said, speaking exclusively to CNBC last week at the Business Forum. World Economy in Davos, Switzerland.
Maxima, the United Nations Secretary-General’s special advocate for inclusive finance for development, told CNBC that the pandemic has pushed more people into extreme poverty and that rising fertilizer prices could have serious consequences. short-term and long-term effects. A trained economist, Maxima has previously worked in international finance and emerging markets.
“We’re going to see now because of inflation, but we’re also going to see next year, because when you don’t have fertilizer, you can’t increase your yield. So you’re going to her. says that there will be less product coming out of Africa, which actually feeds each other.
Access to finance
When asked how concerned she is about the conflict in Europe, Maxima told CNBC: “Well, sadly, the concern is not only with conflict within and beyond itself, but also in the role My goal in financial inclusion for development is that I want to eradicate poverty, I want more girls to go to school, I want more people to have a better future”.
She said that while the Covid-19 pandemic has had a negative impact on many people, it has also led to some positive steps towards financial inclusion.
The shift to digitization during the lockdown led many governments to discover the importance of using tools like mobile phones to reach those in need of financial relief.
A Ukrainian military officer inspects a grain depot bombed by Russian forces on May 6, 2022, near the front line of Kherson Oblast in Novovorontsovka, Ukraine. Russia is accused of targeting food storage sites in frontline areas and disrupting Ukraine’s wheat production, potentially causing a global shortage.
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“Many governments when the pandemic and the shutdown started, thought … this is our way of sending money to the poorest and the most vulnerable, who have to stay in lockdown. , they can’t go to the market and sell their products, and this is a very important issue,” she said.
“Many, many countries have increased this payment, I would say from the government to the people in these two years, and they have really discovered this tool of financial inclusion to really do a lot of the work. another goal they’re trying to achieve.”
At the World Economic Forum, Maxima said “1.2 billion adults have had access to financial services over the past decade.” but she told CNBC there’s probably another 1.5 billion left. The latest data from the World Bank’s Global Findex, which measures how adults in 148 economies save, borrow, pay and manage risk, are expected this summer.
Maxima says technology is important for connecting people.
“Without technology, we wouldn’t be able to reach the billions of people that we can reach now… so fintech can actually play a very good role. Why? Because they think differently and they can really listen to her.
She said that women, rural smallholder farmers, microenterprises and the world’s poorest and most vulnerable people are in need of digital solutions to improve access to finance.
“Sadly, after this pandemic, we’re seeing even fewer groups of women actually connected to the internet, because between the money it costs to actually have a phone and the food on the table, they’re choose to put the food on the table. ” she said.
“So there’s a huge connection between affordability and accessibility of digital solutions, to be able to attract people financially.”
