Amid the global economic crisis, almost every country, whether it is developed or developing, is facing the brunt of economic challenges. The crisis had begun since the emergence of the global pandemic and now has deteriorated due to the ensuing Ukraine crisis. In a recently published World Economic Outlook, the International Monetary Fund (IMF) has projected that the estimated inflation would reach 8.7% in developing economies, whereas the rich counties are also facing decade-high inflation of 5.7%. Due to the war in Ukraine, energy and commodity prices have been rising rapidly. The post-pandemic economic recovery has been derailed and it is estimated that global growth would slow from 6.1% last year to 3.6% in 2022.  

As the global economy is facing turmoil, developing countries in Global South are undertaking a strategy of economic adjustment to deal with the crisis. However, their governments’ adjustment strategies are often misunderstood due to misinformation, exaggeration and alarmist tendencies.

Governments all around the world are taking adjustment measures to curb the rope of the economic slowdown. In doing so, countries are devising policies, prioritizing austerity, making price adjustments for necessary commodities and fuels, cutting government expenditures, discouraging growing imports and encouraging the rising flows of foreign currency and pacing exports.

These measures are being taken for specific reasons. First, the current trend of inflation and price hike is global in nature, so economies are pursuing such measures to adjust the economy. Second, due to interdependent international trade and global financial and economic policies, the national economy is very much connected with the global economy. Countries are bound to adjust their economies with the global pace. Third, these are part of precautionary measures to cope with future challenges. Notably, the adjustment measures, especially the price adjustment undertakings are following a global trend. Whether it is developed or developing economy, they are adopting similar economic adjustments. For instance, Bangladesh, India, Pakistan, and many others have already adjusted the fuel price owing to diminishing subsidy capacity. 

Ironically enough, in the midst of the global crisis, there are widespread misinformation, selective use of data and information, propagation, manipulation as well as ‘rhetorization’ that are hampering the process and rather derailing the outcomes of the adjustment measures that are producing ‘alarmist’ views. Unnecessary skepticism that the economy may collapse has become prevalent in the Global South. For instance, the rhetoric of ‘becoming Sri Lanka’ and skepticism about bankruptcy has become common in Pakistan, Nepal and Bangladesh, even though these countries’ economic growth rates and adjustment policies are different from that of Sri Lanka.

Notably, with technological advances and the popularization of social media platforms, the spread of misinformation and fake news has gone viral. The prevalence of manipulated information is not only creating negative hype and disrupting social harmony, but also damaging the reputation of major institutions and causing economic losses. For instance, recently Bangladesh pre-emptively applied for loans from IMF under the resilience and sustainability trust program, but most of the mainstream media reported that Bangladesh is seeking a ‘bailout’ package from IMF. This has caused unnecessary debate and fear. An economic study reveals that fake news is making harm to the global economy, costing the global economy $78 billion each year. The World Economic Forum has also ranked the spread of misinformation and fake news as among the world’s top global risks.

Against this backdrop, a burning question is: Why are the price adjustments common sense, not parochialism, amid the global economic crisis? From a Gramscian point of view, common sense or ‘senso commune’ is the most widespread conception of life and morals within a given social stratum. It comprises the general form of thought common to a particular period and a particular popular environment. However, from this point of view, the attempts of economic adjustments in the face of the global economic crisis created by the COVID-19 global pandemic, the ongoing Ukraine War and the hegemonic global economic system can be referred to as common sense.

Few issues are relevant to consider. First, the rising price of fuel and commodities, growing inflation as well as economic slowdown are global trends, which need to be addressed by the governments through appropriate measures. Second, the crisis is not local, but global. Notably, the crisis and further economic adjustments are happening in a particular period, when the world is facing challenges caused by the pandemic and then the Ukraine war. Hence, the economic crisis and further adjustments are considered common sense with the weight of a particular time frame and popular environment. Third, if we look at the global economic picture, we can find that almost every economy is facing a crisis and struggling to cope with the problem. Even, the developed countries are struggling to cope with the situation. The war has led to a 30% increase in oil prices, a 90% increase in European gas prices and a 17% increase in food prices. As the Ukraine–Russia region is responsible for roughly 30% of global exports of wheat and 65% of sunflower and Russia is the net producer and supplies of oil and gas, the world is confronting a critical situation.

Coming to the issues of misinformation and manipulation in regard to economic adjustment, it is widely observed that there is a tendency to present the crisis as exaggerated, exclusive for specific economies and alarmist, especially for Global South. For instance, while declining foreign exchange reserve is a common phenomenon for many Global South countries, there are widespread biased predictions about debt distress.  The author’s experience of Bangladesh also suggests the same. Even though many analysts claimed previously that Bangladesh may face Sri Lanka-style debt distress, the latest analysis suggests that the situation is different considering the debt sustainability of the country. IMF’s Asia-Pacific chief Rahul Anand recently also said that Bangladesh is not in a crisis.

Nonetheless, common sense must prevail. It is more so when the issues are linked with the everyday lives of citizens of different nations. We need to recognize the common sense that the crisis is a global trend and economic adjustments are also worldwide and temporary. We also need to avoid misinterpretation and parochial objectives; instead, we should come together to make coordinated and collective actions to face the present crisis and possible future challenges.