Global energy price surge pushes countries into survival mode
- Written by Alejandra Garcia / Radio Havana Cuba
- Published in Secciones
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The global rise in energy prices, driven by conflict in the Middle East, is shaking the foundations of the international economic system and exposing tensions that economic theory textbooks fail to fully capture. In principle, economics books argue that markets allocate resources efficiently: whoever can pay more gets what they need.
But in practice, the current energy crisis seems to be governed less by rational rules and more by a survival logic. The war has severely restricted oil supplies from the Persian Gulf, a key region for global energy.
In response, the world’s strongest economies, such as China, Japan, Europe, and the United States, have reacted by securing large volumes of energy, even at high prices. Meanwhile, developing countries are the most vulnerable amid this supply crisis.
At the same time, some countries have begun limiting their exports to protect their domestic reserves, reinforcing a dynamic that pushes prices even higher.
According to economist Eswar Prasad, the result is a widespread increase in energy costs. Countries in Asia, Sub-Saharan Africa, and Latin America face growing difficulties accessing basic fuels, threatening their economic and social stability.
In India, for example, shortages of cooking gas are already being reported, while in Southeast Asia aviation fuel is beginning to run short. Some experts describe this phenomenon as a form of global hoarding.
Economist Isabella Weber argues that “the market is not a harmonious allocation mechanism, but rather ends up resembling the law of the jungle.” In her view, rationing based on exorbitant prices is deeply unjust, as it excludes those who lack the ability to pay.
Recent history offers precedents for this dynamic. During global food crises, fear of shortages led countries to stockpile reserves and restrict exports, worsening the problem.
Something similar occurred during the COVID-19 pandemic, when governments fiercely competed for protective equipment and vaccines, prioritizing their own populations over international cooperation. Today, the pattern is repeating in the energy sector. Prasad warns that the world is far from acting in a coordinated way.
“It’s not that the world is united and trying to solve the problem together. Each country is in survival mode,” he says.
Amid this crisis, an unavoidable question arises: will it serve as a catalyst for greater cooperation, or will it consolidate a more competitive and unequal order? For now, the evidence points to the latter, a scenario in which, faced with uncertainty, each nation struggles to secure its place in an increasingly unstable market.
