Rising poverty in conflict zones ‘causes a billion people to go hungry’
Extreme poverty is accelerating in 39 countries affected by war and conflict, leaving more than a billion people to go hungry, according to the World Bank,Civil wars and confrontations between nations, mostly in Africa, have set back economic growth and reduced the incomes of more than a billion people, “driving up extreme poverty faster than anywhere else”, the Washington-based body said,Underscoring the breadth of conflicts beyond the Russia-Ukraine and Israel-Gaza wars, it said the 39 developing economies classified as being in fragile and conflict-affected situations are plagued by instability and weak institutions, “hindering their ability to attain the robust, sustained economic growth needed for development”,In its first assessment of conflict zones since the Covid-19 pandemic began in 2020, the World Bank urged western governments to step up support for war-torn countries to end the conflicts and rebuild vital institutions,Since 2020 the level of national income per head of population has shrunk by an average of 1.
8% a year in the affected countries, while it has expanded by 2.9% in other developing economies, the report found.The World Bank, which lends to poor nations to promote stable economic growth, said acute hunger was increasing and development goals set by the United Nations were now “further out of reach”.The report said: “This year, 421 million people are struggling on less than $3 a day in economies afflicted by conflict or instability – more than in the rest of the world combined.That number is projected to rise to 435 million, or nearly 60% of the world’s extreme poor, by 2030.
”The number of deaths in wars and conflicts across the world was stable before the 2008 banking crisis, which forced many developing countries to cut back welfare and education programmes to pay for rising debt payments.The report said the average number of such fatalities was about 50,000 between 2000 and 2004 and even lower between 2005 and 2008, but then there was an increase to more than 150,000 in 2014.Since the pandemic the number of deaths in conflict has averaged 200,000, reaching more than 300,000 in 2022.“For the last three years, the world’s attention has been on the conflicts in Ukraine and the Middle East, and this focus has now intensified,” said Indermit Gill, the World Bank Group’s chief economist.“Yet more than 70% of people suffering from conflict and instability are Africans.
Untreated, these conditions become chronic.Half of the countries facing conflict or instability today have been in such conditions for 15 years or more.Misery on this scale is inevitably contagious.”He said of the 39 economies currently classified as facing conflict or instability, 21 are in active conflict.Several major donors to investment programmes across the developing world have reduced their funding in recent years, including the UK and the US.
Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionSome philanthropic organisations, including the Bill Gates Foundation, have said they cannot increase funding to fill gaps left by governments, leaving many countries to scramble for funds to pay loan interest payments,According to the report, the extreme-poverty rate has fallen to 6% on average across all developing world countries,However, in economies facing conflict or instability the rate is nearly 40%,The 39 countries have a rate of national income per head of $1,500 (£1,282) a year, “which has barely budged since 2010 – even as GDP per capita has more than doubled to an average of $6,900 in other developing economies,” the report said,Joining the army of local militia can also be an attractive option for young men and women.
In 2022, the latest year for which such data was available, more than 270 million people were of working age in these economies, yet fewer than half were employed.“The global community must pay greater attention to the plight of these economies,” said M Ayhan Kose, the World Bank Group’s deputy chief economist.“Jumpstarting growth and development here will not be easy, but it can be done – and it has been done before.With targeted policies and stronger international support, policymakers can prevent conflict, strengthen governance, accelerate growth, and create jobs.”
US reaches deal with China to speed up rare-earth shipments, White House says
The US has reached an agreement with China to speed up rare-earth shipments into America, officials confirmed on Friday. The news sent US stock markets to fresh highs amid news of wider efforts to end the trade wars between the US and the world’s biggest economies.Donald Trump said on Thursday that the US had signed a deal with China the previous day, without providing additional details, and that there might be a separate deal coming up that would “open up” India.But the trade news was complicated on Friday afternoon when Trump announced he had called off talks with Canada over a digital sales tax. The S&P and the Nasdaq turned negative before recovering their losses
M&S boss slams ‘bureaucratic madness’ of products requiring ‘not for EU’ labels
The boss of Marks & Spencer has called on the government to rapidly reset relations with the EU and criticised new rules which demand extra checks and labelling on products headed from the UK mainland to Northern Ireland as “bureaucratic madness”.Stuart Machin, the chief executive of M&S, which has 25 stores in Northern Ireland, said that from next week the retailer would have to label 1,000 more products destined for the UK country with “not for EU” while another 400 items would require “additional checks”.The “not for EU” labelling is designed to prevent products intended for sale in Northern Ireland being moved to the Republic of Ireland, which is an EU member.In a post on X, he said the change in rules added “yet another layer of unnecessary costs and red tape for food retailers like M&S”.“Quite frankly it’s bureaucratic madness, confusing for customers, and completely unnecessary given the UK has some of the highest food standards in the world
Lotus plans to end UK sportscar production, putting 1,300 jobs at risk
Lotus is planning to end production of its sportscars in the UK and shift it to the US, a move that would put 1,300 jobs at risk and represent a major blow to the British car industry.The carmaker’s Chinese owner, Geely, is looking at options including manufacturing its Emira sportscar in the US, and permanently stopping production at its factory in Hethel, Norfolk, according to a person with knowledge of the company’s thinking. No final decision has been made.Workers at the factory, in a former second world war bomber facility, have not been informed of the plans. Lotus declined to comment on “rumours and speculation”
Wall Street hits record high on trade deal hopes; UK car exports to US halve due to tariffs – as it happened
UK car production has slumped to a 76-year low, as Donald Trump’s trade war hurt the British auto industry.Shipments to the US fell by 55.4% last month, according to new data from the Society of Motor Manufacturers and Traders.The SMMT says:This was primarily due to the imposition by the US administration of a supplementary 25% Section 232 tariffs on cars from March which depressed demand instantly forcing many manufacturers to stop shipments.However, with the trade agreement negotiated by government due to come into effect before the end of June, this should hopefully be a short-lived constraint
Barclays and Jes Staley face fresh lawsuit in US over Epstein link
Barclays and its former chief executive Jes Staley are facing a class action lawsuit in the US over claims they defrauded and misled investors over Staley’s relationship with the child sex offender Jeffrey Epstein.A judge in a Los Angeles court denied Staley’s request to dismiss the case this week, paving the way for a fresh hearing that continues a long-running legal saga emanating from Staley’s statements to regulators and investors over the nature of his ties to the disgraced financier.It is a bruising outcome for the American banker, who lost a legal challenge in the UK on Thursday against the Financial Conduct Authority (FCA), which in 2023 had banned him for life from holding senior management roles in the City for misleading the watchdog over his history with Epstein.The US class action suit, led by pension funds in New York and Missouri, alleges that Barclays, its chair, Nigel Higgins, and Staley repeatedly misrepresented Staley’s history with Epstein to media and investors, starting in July 2019, weeks after Epstein was arrested on charges of trafficking underage girls for sex.Court documents allege that this was done in an attempt to protect Barclays’ reputation and share price
Superdrug to add more stores as demand for weight loss drugs soars
An increase in demand for weight loss drugs, including Mounjaro and Wegovy, as well as demand among its generation Alpha customer base for beauty products is driving expansion at Superdrug.The retailer plans to add 25 more stores to its 800-plus strong chain this year as well as extending existing outlets, despite troubles across the high street that have led to the closure of hundreds of stores at its rival Boots and downsizing at chains from Poundland to River Island.Superdrug is bouncing back from difficult times during the coronavirus pandemic as demand for its weight-loss services almost 300% in the first half of this year compared with last year.While many of the drugs are ordered online via its private GP service, the retailer is looking at how it can adapt and expand in-store services to cater for demand so that its team of nurses can offer help with the potential side-effects, such as hair loss, for example. More serious problems, including with the pancreas, have also been flagged up in some cases
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