Confusing signals from developed economies

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J. Soedradjad Djiwandono
J. Soedradjad Djiwandono, Emeritus Professor of Economics, Faculty of Economics and Business, Universitas Indonesia, and Adjunct Professor of International Economics, S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore.

A less encouraging picture emerges from what has been taking place in countries like Kenya, Sudan, Ethiopia, and certain other less-developed economies. Extreme heat and drought have been devastating for crops, threatening severe food shortages and even famine for some areas. 

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Be that as it may, the extreme heat spreading globally, the Covid-19 pandemic and, starting in February, the Russian incursion into Ukraine, now expanded into total war, has created additional disruptions in supplies of gas, fertilizer and one of its derivatives, and also grain, thus imperiling many economies, both emerging and less-developed ones globally. There was a degree of relief when Russia permitted Ukraine to export grain and fertilizer via ports on the Black Sea. But we do not know whether this policy will be sustained before hostilities are concluded.