AAYG organizes a seminar “The impacts of the Russian-Ukrainian crisis on the Asia-Africa economy”
The Asia and Africa Youth Government (AAYG) organized an international webinar on July 4, 2022 on the theme “The impact of the Russian-Ukrainian conflict on the Asia-Africa economy”.
The Russian-Ukrainian conflict has caused a wave of economic crises, particularly in Asia and Africa.
Respiratory Saddam Al-Jihad, the President of AAYG 2021-2026, said Asian and African countries are not only grappling with political and socio-cultural problems but have also exacerbated the economic problem due to conflict and COVID -19.
Therefore, Saddam expected the youth to formulate solutions and policies to address this critical issue as the food crises become increasingly severe in Africa and Asia.
“I very much hope that this forum can discuss the problem, especially the potential economic crisis in Asia and Africa, and then formulate the solution on how to help resolve the conflict. So that the government can focus on economic recovery in the post-COVID-19 era,” Saddam Al-Jihad said in his welcome speech.
Gracia Paramitha, senior lecturer at LSPR Communication and Business Institute Jakarta, argued that Indonesian President Joko Widodo’s mission through diplomatic visits to Russia and Ukraine is a good initiative. However, as Gracia said, we cannot rely on reunion alone as the determining factor in achieving a successful peace settlement.
Therefore, Gracia pointed out that these are other factors that we need to look at. In the meantime, she also appreciated the presence of Joko Widodo to exercise his functions as President of the G20, which will take place in Bali in November 2022.
In addition, AAYG’s Coordinating Minister of Economy and IT, Naoufal Oulda, focused on how countries should devise strategies in the face of an economic downturn. The war, he said, has affected countries experiencing inflation since the spike in energy prices.
“Natural gas represents around 25% of the world’s energy resources. Thus, energy prices have become expensive because we have imported from Russia and Ukraine. The sanction of exporting gas from Russia is also called the sanction of the economy to other countries as well, especially to Asian countries. This will limit economic momentum in all countries,” Oulda explained.
Oulda also asked the government to encourage local agriculture and renewable energy, such as solar and wind, to minimize dependencies on supplies from Russia and Ukraine.
“So we must also have our autonomy in the agricultural sector. We urge the government and organizations to support them, especially young people, to realize their ideas by encouraging start-ups and small businesses with a view to youth collaboration,” Oulda said.
In addition, AAYG Coordinating Minister for Politics, Law and Security, Mohammad Zaman Bajwa, the second speaker, highlighted how the Russian-Ukrainian conflict has affected the countries’ imports and exporters, given that most Asian and African economies depend on Ukraine and Russia. energy.
“In 2021, Kenya imported 30% of its wheat consumption from Ukraine. Cameroon imported 44% of fertilizers from Russia. In Ghana, 60% of its iron production comes from Ukraine and Russia,” said Zaman Bajwa.
He further claimed that dependencies could slow down development projects due to soaring commodity prices and continued his explanation.
“If they are not able to buy things, all countries will export these things. When this country will not export, the weaker economy will have to facilitate people. In this case, they will benefit from a low tax rate. They will not spend money on development,” Bajwa explained.
“So this situation needs to stop because it is not just impacting the global economy. What matters is the determination of world leaders, like Jokowi who took on the responsibility of trying to mediate between two powers.