Mint Explainer: After covid, the unfolding of an unfair world
- India remains an outlier in a world where the gulf between rich and poor nations has widened.
The post-pandemic world is not only poorer, but also becoming more unequal and unfair. Economic disparities between the rich and the developing nations have widened. This is evident from the World Bank's recent Global Economic Prospects report. Poverty reduction initiatives have slowed, as debt-laden developing economies battle inflation, interest rates and weak investment. Commodity prices are cooling, but the US is now exporting inflation to other countries. The US Federal Reserve's relentless interest rate rate hikes to control prices have weakened currencies across countries, feeding into global inflation. The pandemic and what followed have altered the global macroeconomic landscape – from the decline of China to the rise of India.