Joseph Stiglitz: Russia's war highlights fallacy of relying on markets for progress

Like previous disruptions to the global economy, Russia’s war in Ukraine has highlighted the fallacy of relying on markets alone to mitigate risks and strengthen countries’ resilience. Neoliberalism has failed yet another test and must finally be replaced by a new economic vision based on new values.

Firefighters tackle a blaze at an apartment building after a Russian attack in Kharkiv, Ukraine, on Sunday. The charitable interpretation of Germany’s position over Russia's war is that it hoped commerce would tame Russia. Photo: AP/Andrew Marienko

The fallout from Russia’s invasion of Ukraine has reminded us of the unforeseeable disruptions constantly confronting the global economy. We have been taught this lesson many times. 

No one could have predicted the September 11, 2001, terrorist attacks, and few anticipated the 2008 financial crisis, the Covid-19 pandemic or Donald Trump’s election which resulted in the United States turning toward protectionism and nationalism. Even those who did anticipate these crises could not have said with any precision when they would occur.