Gustavo Volmar

Factors affecting economies and weaknesses

The prevailing economic difficulties these days are not the exclusive domain of nations like ours, underdeveloped and exposed to the harmful effects of increases in fuel prices. They also affect advanced countries, which have not been able to escape the turbulence of the present situation.

A combination of acting factors has contributed to create unfavorable conditions for the development of the economies. First the pandemic and the suspension of activities, with its sequel of unemployment and decline in production of goods and services. Then the dislocation of supply chains. Later, the congestion in the ports and the disorder in the maritime transport of cargo. And finally, as if it had been a clincher or coup de grace, the conflict in Ukraine and the rise in oil and gas.

However, despite the undeniable consequences that this mixture of successive events has had, it would be an exaggeration to attribute responsibility for all the vicissitudes that numerous countries are going through. The documentary evidence reveals the presence of difficulties that have been dragging on since before, indicative of weaknesses unresolved issues that go beyond the conjunctural sphere and show characteristics of a structural type.

that kind of weaknesses persistent is reflected in the political arena. The popular discontent caused by these problems, derived from the scarcity of employment opportunities and the increase in the cost of living, leads to reactions against the governments of the day, be they from the right, center or left. For this reason, apparently contradictory behaviors are observed, because while voters in nations such as Chile, Peru and Germany accept proposals that are less conservative than the existing ones, in France there is a rebound of the extreme right, and in the US it is visible a strengthening of the electoral prospects of the Republican opposition.

Doctor of Economics from Columbia University specialized in companies, markets, forecasts and risk.

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