Bloomberg: Oil Shock Devastates Poorer Nations as Shortages, Protests Mount
(Bloomberg) -- Developing nations are suffering the biggest hit from this year’s oil shock. Many are dependent on imported fuel and are being crushed by a combination of high international prices, weak currencies and competition from rich nations whose economies are rebounding from the pandemic.
Higher fuel bills are exacerbating inflation in countries that are already struggling with soaring food prices. The combination is leading to unrest and protests from citizens, which democratic governments know from experience is one of the surest ways to lose popularity and power.
Sri Lanka, Laos, Nigeria and Argentina are among emerging economies in Asia, Africa and Latin America that have seen long queues at some filling stations in the past weeks because of fuel shortages.
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WNU Editor: With high fuel prices how will goods be transported that will make economic sense for the farmer/store to sell, and for the customer to buy? In the industrialized rich countries we will adjust. But for everyone else, it is now a crisis.
A regular reader of this blog in Kenya emailed me yesterday that almost half of his government salary (he is a teacher) is now spent on food!?!?!? This is not sustainable, and you do not have to be a genius to know that in the coming months the situation is going to get worse.
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