War in Ukraine: Lives and Livelihoods!

The Russian invasion of Ukraine has caused the greatest humanitarian crisis in Europe since the Second World War. Thousands of lives have been lost, and millions of livelihoods have been disrupted through displacement, lost homes, and lost incomes (see below). 

Source: McKinsey

As in any conflict, uncertainty is high. It is unclear how the military situation, the political process, and the countermeasures around the world will play out. However, it is already certain that, as a consequence of the economic impact of the crisis on energy and food markets, disruptions will affect many in Europe and beyond.

The invasion of Ukraine is causing a massive humanitarian crisis. In addition to the pain and suffering experienced by those inside Ukraine, there are already more than three million people seeking refuge in neighbouring nations, with similar numbers displaced within Ukraine. As in other major conflicts and refugee crises—including those in Syria and Yemen—it will be a gargantuan task for the world community to aid, shelter, and host these unfortunate people.

The vulnerable will suffer the most. Vulnerable populations are most likely to become refugees and will find it hardest to bear the rising costs of food and fuel. Aid efforts are under way globally to ensure that people’s basic needs for food, shelter, and psychological safety are met, in and beyond the conflict zone. 

The impact of the Ukraine war has been on energy policy, food security, competition heightened for critical materials, supply chain disruptions, financial system ripples and step-up defence investments by NATO and the U.S. But most of all we see volatility, uncertainty, lives lost and disrupted.

Many business leaders are trying to move their organizations from ad hoc reactions to each disruption to a foundation of greater resilience. The key is to stay alert to what is over the horizon and building capabilities to continually manage uncertainty. Although we in Malaysia are far from the conflict, the ripple effects impact our economy and political landscape. Nimble, resilient and practical steps will keep our lives and livelihoods safe.

Reference:

War in Ukraine: Lives and livelihoods lost and disrupted, Sven Smit, Martin Hirt, Kevin Buehler, Olivia White, Ezra Greenberg, Mihir Mysore, Arvind Govindarajan, and Eric Chewning, McKinsey, 17 March 2022