Surviving Economic Crisis in Ukraine: Lessons from Regional Disasters
The recent suspension of operations by global credit card giants Visa and MasterCard in Russia has raised significant concerns about the survival of people, businesses, and banks in neighboring Ukraine. While Russia faces a critical economic challenge, the situation in Ukraine, particularly in regions unaffected by combat, remains more dynamic. Understanding how infrastructure and financial systems can adapt to such crises is crucial.
Current Situation in Ukraine
Ukraine, consisting of diverse regions, currently experiences varying degrees of operational functionality. Straddling a divide, banks in the West of the country are still operational, unlike those in the East and Northeast, which are under attack. Visa and MasterCard continue to operate in Ukraine, albeit with operational challenges. In areas of conflict, the primary issue is not the suspension of card operations but the safety concerns and logistical difficulties faced by people and businesses.
Infrastructure and Financial Adaptability
The suspension of Visa and MasterCard operations primarily affects Russia, as most of the Russian card economy depends on the Mir card network. The Mir card network, established by Russia to reduce dependency on external networks and currency, fails to protect Russian cardholders when the Ruble suffers. The exit of Visa and MasterCard from the Russian market significantly impacts the country's ability to secure foreign credit, exacerbating the economic crisis by devaluing the currency.
Mobile Wallet Technology: A Beacon of Hope
In similar scenarios of disaster, innovations in financial technology have demonstrated remarkable resilience. In Jordan, for instance, where Syrian, Iraqi, and Palestinian refugees face displacement, sophisticated mobile wallet technology was developed by non-governmental organizations (NGOs) in collaboration with telecommunications companies. This technology enabled registered refugees to access funds for essential needs like food and clothing using innovative methods such as retinal scans. This approach has proven effective in situations where traditional banking systems are inaccessible or non-existent.
Organizational and Evacuation Support
Non-profit organizations (NGOs) in Ukraine have stepped up to mobilize experienced aid to support disaster emergency. Despite the operational challenges, these organizations have managed to organize evacuations and provide support to refugees. With the support of skilled NGOs, the Disaster Emergency Committee is effectively tackling the current crisis. These efforts highlight the importance of leveraging existing resources and innovative solutions to address urgent needs during times of crisis.
Adapting Lessons Learned
The experience of leveraging mobile wallet technology in Jordan during refugee crises offers valuable lessons for Ukraine. The development of mobile payment solutions that do not rely on traditional banking infrastructure can mitigate financial disruptions. Additionally, the involvement of NGOs and telecommunications companies can rapidly deploy these solutions to areas in need. By adopting these innovative approaches, Ukraine can better support its citizens and businesses during times of economic and humanitarian crises.
In conclusion, while the suspension of Visa and MasterCard operations in Russia presents a significant challenge, the resilience shown by the Ukrainian financial system and the adaptability of NGOs provide hope. By learning from successful innovations in other crisis situations, Ukraine can develop effective survival strategies that ensure basic needs are met and the economy can stabilize.
Keywords: survival strategies, NGOs in Ukraine, mobile wallet technology