As the international unrest between Russia and Ukraine continues. Virgin Islands Businessman, Attorney and former Education Minister Myron V Walwyn took to social media expressing his thoughts on the situation and its impact on the Virgin Islands.
Walwyn began by saying, “The Russian/Ukraine conflict will have implications on food supply and fuel well into 2023 as it stands. Russia is the world’s largest exporter of wheat and the Ukraine is the fifth largest. Together they account for 19% of the world’s barley supply, 14% of wheat supply, 4% of corn and one-third of global cereal exports. Russia is the world’s third largest producer of petroleum.”
“Houston we have a problem!”-Walwyn
Walwyn continued, “A problem which will permeate every strata of the local economy. The price of an item in low supply and high demand will steadily rise to meet the consumer’s expected demand. When the cost of doing business increases, businesses often assess their operations with a view to cutting cost and for most businesses, the labour cost is the first area that gets attention. The knock on effect of reduced work hours and possible layoffs will take a toll on every area of the economy. The stark reality of business in an economy like the BVI is that you cannot pass on every increase in the cost of business to the consumer. The market cannot always absorb it.”
Business community has already been under severe strain
Walwyn closed by saying, “Though the planned interventions of the government may be well intentioned they are woefully inadequate. A much higher level of intervention is needed and the government must do its part to keep the local economy intact. It must look at the current import duties and other fees with a view to reduction or suspension of some of them. It must address the matter of the fuel variation charge on electricity. It must find ways to assist businesses to better access capital for operational purposes. It must meet with the business community to see how best they can assist businesses to ride out this storm. The local business community has been under severe strain from 2017 and is in need of major support. The Covid Stimulus unfortunately did very little to help businesses to keep their doors opened. We can get through this but it will call for strong, thoughtful and inclusive leadership. I hope that we can rise to occasion.”