Israel or Palestine: The Impact of the Israel-Palestine Conflict on Global Business and Third-World Countries, with Insights into Sri Lanka’s Adaptive Strategic Approaches
What is war? Are wars some type of business? According to the National Geographic Society, war is a “violent conflict between states or nations,” and “wars are fought primarily for economic, religious, and political reasons.” Thus, it is understandable that war is a complex and multifaceted subject that can be defined in numerous ways. In contemporary times, the topic of war has been captivating the attention of individuals globally through the ongoing conflicts between Israel and Palestine, even as this article is being composed. The underlying reasons and causative factors behind these wars may include political power and struggles, economic interests, territorial disputes, ethnic or religious tensions, and resource competition. However, these reasons may also depend on the historical and geopolitical context as well. According to the aforementioned facts, when these causative factors are deeply analyzed, it is evident that wars have a huge impact on various contexts like the economic status of countries, political influence, including regime changes and international relations, humanitarian crises that cause displacement of civilian populations, socio-cultural impact encompassing psychological effects, environmental pollution, technological issues like disruption of communication, medical challenges, and disruption of education. Consequently, this article aims to discuss the impact of the Israel-Palestine war on the global economic sphere and its implications for third-world countries like Sri Lanka while exploring the strategic approaches that Sri Lanka uses to manage arising crises.
The ongoing conflict between Israel and Palestine impacts the global business field, causing major economic ramifications for third-world countries, including Sri Lanka. The Middle East is renowned for the supply of oil, as it is the fundamental global hub that provides oil across the world. Thus, the Israel-Palestine turmoil could interrupt the global crude oil supply and trade. Amidst the Russia-Ukraine War, individuals learned to be mindful of the global economic status and geopolitical landscape while also being aware of inflation and economic crises. However, internal and interstate conflicts between Israel and Palestine have significant effects on the stock market and exchange rates. Therefore, it may lead to the escalation of prices beyond the usual customary rate, affecting third-world countries and their trading partners. The Hindu Business Line website states that conflicts within the region may drastically push up crude oil prices, which may go up to USD 150 per barrel as the crude supply of the world comes from the Middle East, covering over 20%. Hence, it is evident that spikes in oil prices that result from conflicts interrupt the global oil supply as well. According to Bianchi (2023), “higher energy prices would hamper the central bank’s efforts to tame inflation pressures in most advanced and emerging economies.” Third-world nations like Sri Lanka are still trying to emerge from the inflation crises and economic repercussions that have resulted from the COVID-19 pandemic. Consequently, the abrupt changes in the global market and elevated prices may challenge the fostering economic growth of nations. It may affect the supply of energy, logistics, high-tech and semiconductors, jewelry, pharmaceuticals, and medical supplies within the nations. Accordingly, this may lead to the economic instability of nations and their inability to cope with global trade and investments. Elevated prices may also affect the imports and exports that lead to the economic imbalances where governments are forced to take debt from industrialized first-world nations.
It is crucial that economic specialists address the emerging crises that have resulted from the aftermath of the Israel-Palestine conflicts and turn their attention to formulating strategies for the management of global economic challenges. In relation to third-world countries that face severe inflation and economic crises, there should be proficient schemes and effective strategies to address those issues. Lately, Sri Lanka as a nation has faced a multitude of economic challenges, and the entire globe has witnessed the major political changes that have emanated from the economic crisis and inflation, demonstrating the consequences of inaccurate economic decisions. However, it is apparent that the government of Sri Lanka seems to follow some strategic approaches in order to manage these crises, as the ongoing inflation is controlled to some extent. For instance, the government of Sri Lanka is popularly known for maintaining strategic diplomacy by balancing relationships with powerful nations and regions that are involved in conflicts. Sri Lanka often seems to be dealing with China, India, and Russia by maintaining supportive and peaceful resolutions with long-term interests for the country. Infrastructure development is another alternative tactic followed by Sri Lanka to develop the economic sphere. Sri Lanka is recognized to be a famous tourist magnet with attractive destinations. It has businesses seeking stability and “Foreign Direct Investment” (FDI) that enhance economic development, new job opportunities, investing in infrastructure projects, and technology transfer. Therefore, it facilitates creating a tumultuous global environment within Sri Lanka. Nevertheless, Sri Lanka still seems to lag behind in the diversification of trade partnerships that strengthen the economic ties with various commercial sectors. Furthermore, the government should follow proper risk management criteria to handle potential economic risks effectively. Accordingly, it is obvious that the Sri Lankan government needs to uphold proper strategic plans and engage in pioneering economic possibilities to enhance risk management under various crises. In conclusion, this article has discussed the ongoing conflict between Israel and Palestine, and the impact on the global economic sphere and third-world countries, while focusing on the strategic approaches of Sri Lanka to manage the economic crisis. The Israel-Palestine War has significant influences on the global business landscape and challenges the economic management systems of the nations, allowing those respective nations to formulate stronger strategic solutions. The effects of war are far-reaching and impact human existence, leaving enduring scars and memories for every individual who has experienced war. Sri Lankans have also undergone 30 years of turmoil that some individuals may still struggle to overcome. Socially, politically, economically, and psychologically, war has a toll on every individual that can only be repaired with rehabilitation, reconciliation, and rebuilding. Nonetheless, there are still some individuals and groups of people who are not sensitive to these circumstances and engage in antagonistic discourse, where groups blame one another for supporting either Israel or Palestine on social media platforms, especially by condemning public figures. Thus, rather than battling over Israel or Palestine, it is necessary to investigate solutions to overcome contemporary challenges. As Sri Lankan citizens, it is essential to unveil such accurate subject matters in front of society to acknowledge people about the current global economic status in relation to the Israel-Palestine conflicts and research on how it could affect the economic status of third-world nations. The famous quote by Eckhart Tolle, “Awareness is the greatest agent for change,” encourages providing knowledge about trade and economic management to people, as it will eventually contribute to transforming the prevailing economic conditions in Sri Lanka.
References
- Bianchi, D. (2023, October 20). How the Israel-Hamas war could affect the world economy and worsen global trade tensions. The Conversation. https://theconversation.com/how-the-israel-hamas-war-could-affect-the-world economy-and-worsen-global-trade-tensions-215930
- BL Chennai Bureau. (2023, November 01). Education of West Asia crisis will push up prices of Commodities, says World Bank. The Hindu Business Line. https://www.thehindubusinessline.com/markets/commodities/escalation-of-west-asia crisis-will-push-up-prices-of-commodities-says-world-bank/article67485450.ece
- National Geographic Society. (2023, October 19). War. National Geographic Education. https://education.nationalgeographic.org/resource/war/
