IMF boss sounds alarm about a new Cold War in the wake of the pandemic and the invasion of Ukraine
The head of the International Monetary Fund has warned of the dangers of a second Cold War in the wake of Covid and the Russian invasion of Ukraine.
Kristalina Georgieva, who grew up in Soviet-era Bulgaria, spoke out as countries stepped up efforts to secure supply chains amid geopolitical tensions.
At the spring meetings of the IMF and World Bank in Washington, she drew on experiences of growing up behind the Iron Curtain and said, “I know the consequences of a Cold War.” She recalled the loss of creativity and openness when talented people were cut off from the global economy.
Concern: Kristalina Georgieva (pictured) spoke out as countries ramp up efforts to secure supply chains amid geopolitical tensions between major powers
“The question is, can we be more determined to increase security of supply, but not push the world to the point of entering a second Cold War?” Georgieva said. “I believe it is possible.”
Her comments came after the advanced nations of the G7 warned that if global supply chains were repaired, there was a risk that the world would be divided into power blocs.
Russia’s war against Ukraine has changed the attitude of many European countries towards oil and gas supplies from Russia.
The US is working to diversify technology and other production from China amid concerns over Beijing’s threats against Taiwan.
“What we have learned from Covid and the war is that security of supply and the reliable functioning of global supply chains are given higher priority in economic discussions and decision-making,” said Georgieva.
“Unfortunately, we must recognize that we cannot take peace for granted.”