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A family from the Q'eqchi Mayan indigenous people of Guatemala gathers to share a meal cooked with firewood. Life in many rural areas of Latin America continues to be marked by scarce resources and inequality, in comparison with urban areas. CREDIT: IDB

By Humberto Márquez
CARACAS, Jan 31 2024 (IPS)

Rural life in Latin America and the Caribbean continues to be marked by poverty and inequality compared to the towns and cities where the vast majority of the population lives. A new focus on rural life in the region could help reveal and address the challenges and neglect faced by people in the countryside.

“Many people in our countryside simply no longer have a way to live, without services or incentives comparable to those in the cities, producing less and for less pay, under the threat of more disease and poverty,” Venezuelan coffee producer Vicente Pérez told IPS."Many people in our countryside simply no longer have a way to live, without services or incentives comparable to those in the cities, producing less and for less pay, under the threat of more disease and poverty." -- Vicente Pérez

In Mexico, whose countryside was home to 24 million of its 127 million inhabitants at the beginning of this decade, according to the World Bank, a study by the Economic Commission for Latin America and the Caribbean (ECLAC) showed that eight out of every 10 rural inhabitants lived in poverty, and six in extreme poverty.

It was in the Mexican capital where experts from ECLAC and the International Fund for Agricultural Development (IFAD) proposed this January “a new approach” to the concept of rural life in the region, to help public action to reduce inequality and contribute to the achievement of the Sustainable Development Goals (SDGs).

The project’s director, Ramón Padilla, told IPS from Mexico City that “we need a new narrative about rural Latin America that goes beyond the traditional static and dichotomous vision, and that sees rural areas not as backward places, but as territories with great potential for development and connections.”

Building a new narrative “is important for a better visualization, treatment and reduction of inequalities in income, infrastructure, education, health, gender, etc.,” added Padilla, head of ECLAC’s Economic Development Unit in Mexico.

“Those who have access to electricity, drinking water, communications and transport to work or school in a big city are at a great distance from life in many depressed rural areas,” said Pérez, executive director of the Venezuelan Confederation of Agricultural Producers (Fedeagro).

A woman feeds livestock next to her house in rural Nicaragua. Housing and food conditions are often very precarious in the most depressed rural areas of Central America. CREDIT: FAO

Entrenched rural poverty

Hilda, the head of her household in Los Rufinos, a village of 40 families in the middle of a sandy dry forest in the northwestern department of Piura, Peru, told visitors from the Argentina-based Latfem regional feminist communication network what it is like to live without electricity and drinking water, to cook with firewood and, among other hardships, to get her granddaughters the schooling she did not have.

In their dirt-floored houses with fences and walls made of logs, plastic and tin sheeting, the women in Los Rufinos cook in the early hours of the morning for the men of the village who go to work in the agro-exporting fruit plants in Piura, the departmental capital.

“When there is no moon, the night is really dark, you can’t see a thing. It’s not like in the city, where there is so much light,” Hilda commented to the Latfem representatives.

In Peru, a country of 33.5 million inhabitants (80 percent urban and 20 percent rural), 9.2 million people are poor, according to the government statistics institute. Poverty measured by income affects 24 percent of the urban population and 41 percent of the rural population, while extreme poverty affects 2.6 percent of the urban population and 16.6 percent of the rural population.

Farther north, in a rural area of the department of Cundinamarca in central Colombia, Edilsa Alarcón showed on the television program “En los zapatos de” (In the Shoes of), on the Caracol network, how she goes every day to two small fields near her home to milk four cows, her family’s livelihood.

Women farmers work in a field in Guatemala. In rural areas of Latin America, women have more precarious or lower paid jobs than men, and barely a third of them have access to forms of land ownership. CREDIT: Juan L. Sacayón / UNDP

She carries 18 liters of milk on the back of a donkey every morning, which she sells for 14 dollars, barely enough to live on. She owns no land and her biggest expense is renting pastureland for 860 dollars a year.

Colombia’s rural areas are home to 12.2 million people (51.8 percent men and 48.2 percent women), 46 percent of whom live in poverty, according to ECLAC.

“Gente de Guate”, produced by Guatemalan Youtubers , collects and delivers food, household goods and even cash for families in the countryside who barely scrape by in houses with four walls made of corrugated metal sheeting, boards and logs, wood stoves and a few chickens running around among corn and cooking banana plants.

Of Guatemala’s 17.2 million inhabitants, 60 percent live in poverty and between 15 and 20 percent in extreme poverty, according to figures from official entities and universities. Half of the population lives in rural areas, where poverty affects two thirds of the overall population – and 80 percent of indigenous people – and extreme poverty affects nearly one-third of the total population.

Schoolchildren walk through a suburban area in Mexico. The need to secure services such as education, health and communications, along with better incomes, continues to drive the displacement of rural dwellers. CREDIT: IDB

Regional data

Some 676 million people live in Latin America and the Caribbean, of whom 183 million are poor (29 percent), and 72 million are in extreme poverty (11.4 percent), according to ECLAC data for 2022 and 2023.

While 553 million people (81.8 percent) live in towns and cities, 123 million (18.2 percent) live in rural areas. And while in urban areas poverty stands at 26.2 percent and extreme poverty at 9.3 percent, in rural areas 41 percent of the inhabitants are poor and 19.5 percent are extremely poor.

Gender inequality also persists, stubbornly. One figure that reflects it is that only 30 percent of rural women (58 million) have access to some form of land ownership, their jobs are often more precarious and less well paid, and at the same time they spend more time on household and family care tasks.

The exodus from the countryside continues, first to the cities of each country, then abroad. In countries like Venezuela many rural dwellers alternate their life and work between their plots of land in the countryside and a slum in a nearby town every few days. CREDIT: Correo SurErbol

Time to migrate from the countryside

Latin America has experienced a massive exodus from rural to urban areas in the 20th century and so far in the 21st. “In 1960, less than half of the region’s population lived in cities. By 2016 that proportion had risen to over 80 percent,” wrote Matías Busso, a researcher at the Inter-American Development Bank (IDB).

This process, driven by the search for better employment opportunities and living conditions, first fueled the expansion of the region’s major cities – to form megalopolises such as São Paulo and Mexico City – and more recently migration to foreign destinations, such as the United States.

The largest migratory phenomenon abroad that the region has known, the exodus of more than seven million Venezuelans in the last decade, has involved numerous urban and suburban inhabitants, but also people from many rural areas.

Pérez said that, in addition, in countries like Venezuela there is now a tendency to move from the countryside to urban areas, “but not to the big cities, like Caracas or Maracaibo, but to nearby towns or small cities, maintaining their ties to the plot of land where the family has crops or a few animals.”

“New shantytowns form in small towns next to agricultural areas, such as coffee plantations in the Andes (southwest) or grain fields in the (central) Llanos, and people work for a few days in some urban job and then return to the countryside at the weekend. A sort of double life,” said Pérez.

View of a suburban area neighboring the city of Medellín, in northwestern Colombia, where urban and rural features are combined. ECLAC and IFAD are promoting a new narrative to consider the potential of many areas that should not be pigeonholed as exclusively urban or rural. CREDIT: Medellín city government

Seeking a new narrative

New realities such as these prompted the ECLAC-IFAD initiative to “overcome the traditional view that contrasts rural and urban areas, recognizing the existence of different degrees of rurality in the territories and greater interaction between them,” according to its advocates.

“The project seeks to replace the dominant narrative – which is reductionist and marginalizing – of rural areas as static and backwards, with one that recognizes the challenges and opportunities of today’s new rural societies,” said Peruvian economist Rossana Polastri, regional director of IFAD.

The basis of the initiative is that between what is defined as rural and urban – the limit in countries such as Mexico is to consider urban areas as those with more than 2,500 inhabitants and rural areas as those below that level – there is a variety, degree and wealth of possibilities and opportunities to address issues of equity and development.

Padilla from Mexico said that a first element of the work they propose is to collaborate with the public bodies in charge of designing and implementing policies for rural areas, since “technical work, well grounded in concepts and theories, has to go hand in hand with a dialogue with the public sector.”

“A second element is continuous dialogue with the communities. The new understanding has to be translated into participatory solutions, in which each community and each territory creates a new vision, a renewed plan for sustainable development,” said the head of the project to build a new approach to rural life in Latin America.

WHO Director-General Tedros Adhanom Ghebreyesus and WHO Goodwill Ambassador for Leprosy Elimination, Yohei Sasakawa. Credit: Sasakawa Leprosy Initiative

By Busani Bafana
GENEVA, Jan 31 2024 (IPS)

Tuji Sode detached himself from his family and hid himself from the public, embarrassed by his condition, which in biblical times meant exclusion from society and even death.

Sode, a university student in Ethiopia, has Hansen’s Disease, also commonly known as leprosy. Leprosy is a bacterial disease that, left untreated, can cause severe disability and deformity.

Sode recalls the severe discrimination because of his leprosy. He developed a disability because the disease was detected too late for treatment. He admits to having tried different solutions to be cured.

“I did it myself and sought local remedies like holy water,” Sode said in a video message at the launch of the Global Appeal 2024 to End Stigma and Discrimination Against Persons Affected by Leprosy. 

“Discrimination restricts our opportunities for education, employment, and marriage, forcing us to detach from our families, lose property, and live a life that depends on begging,” said Sode, who called for global efforts to change the misconception about leprosy and fight entrenched stigmatization and discrimination.

Debilitating Discrimination

Sode’s pain was echoed by Kofi Nyarko, who represents a leprosy information service, IDEA, in Ghana.

“It is very painful,” Nyarko says. “[For] a disease like leprosy, if you get your treatment, you will be cured, but because of this discrimination against us, the disease affects us for many years, and it is hurting us a lot.”

Nyarko appealed to the World Health Organization (WHO) to help abolish all laws against people affected by leprosy.

Discrimination against people with leprosy continues unabated, reversing efforts to eliminate the disease that crops up in several countries in Asia, Africa, South America, and the United States.

More than 2 million people have leprosy, according to the WHO, and there are 200 000 new cases each year. The resultant discrimination against people affected by leprosy has prevented early detection and treatment, subjecting those affected to a life of hardship, poverty, and isolation. This is the drive behind the launch of the 2024 Global Appeal, calling for an end to “unwarranted discrimination that persons with leprosy continue to face.”

Speaking at the launch of the 2024 appeal, WHO Director General Tedros Adhanom Ghebreyesus said while the world was on track to eliminate the disease, medical interventions were not enough without addressing the conditions in which the disease thrives: discrimination and stigmatization.

“Although it has now been curable for more than 40 years, it still has the power to stigmatize,” Ghebreyesus said, emphasizing that eliminating leprosy requires renewed political commitment, access to services, and awareness-raising.

Ghebreyesus said the global appeal demonstrates a need for renewed commitment to end leprosy by 2030.

While the current WHO Goodwill Ambassador for Leprosy Elimination and the chair of the Nippon Foundation that supports the Sasakawa Leprosy (Hansen’s Disease) Initiative, Yohei Sasakawa, said leprosy was not a curse or a punishment from God but a disease that can be cured by early detection and with raised public awareness.

Sasakawa has committed his life to fighting against the discrimination of people affected by leprosy, visiting more than 120 countries and advocating for zero leprosy.

“Zero leprosy is not an impossible dream,” Sasakawa said in galvanizing global partners to act on eliminating discrimination and securing the rights of persons affected by leprosy.

“I ask for your cooperation so that together we can make the impossible possible,” said Sasakawa, who has pledged to climb Mount Kilimanjaro in Tanzania and hoist a banner at the summit to raise awareness about eliminating discrimination against people affected by leprosy.

The appeal, endorsed by the WHO, was launched with calls for a “world where no one is left behind because of a treatable disease, aiming to break the chains of discrimination and ensure dignity for all.” Discrimination is a major drawback to eliminating the transmission of leprosy, a centuries-old bacterial disease that affects the nerves, skin, eyes, and lining of the nose, causing severe disfigurement and disability.

The appeal organized by the Sasakawa Leprosy (Hansen’s Disease) Initiative, is part of its Don’t Forget Leprosy campaign. For nearly 50 years, the Nippon Foundation has worked hand in glove with the WHO to eliminate leprosy. Each year, it receives the support of influential partners from different fields to build solidarity and ensure that its message reaches far and wide.

Maya Ranavare, President of Apal in India, said the discrimination against persons affected by leprosy necessitates a collaborative effort by all, making it imperative for countries to enact laws and policies that acknowledge and address discrimination while involving persons affected by leprosy.

“Countries must also recognise their obligation to prevent third parties from discriminating against persons affected by leprosy as mandated by international and domestic law,” Ranavare said.

Deterring Discrimination

Leprosy was officially eliminated in the world as a public health problem in 2000 and in most countries by 2010. The WHO has set global numerical targets that link “elimination” to “interruption of transmission” in its most recent global strategy (2021–2030).

The Tanzania Leprosy Association has been working to end discrimination against persons affected by leprosy and their families, as this has excluded them from participating in economic and social activities.

“The discrimination has contributed to poverty and life hardship,” says Mohamed Mtumbi, Executive Secretary of the Association, noting that community sensitization through education has been the most effective way to change community perceptions about leprosy.

Mozammel Hoq, Secretary of the Rangpur Federation in Bangladesh, appealed to the WHO to ensure all policies formulated for persons affected by leprosy are properly implemented and that the WHO should form a welfare trust for them.

The UN Special Rapporteur on the Elimination of Discrimination Against Persons Affected by Leprosy, Beatriz Miranda-Galarza, highlighted that each year thousands of people, including women, children, and the elderly, face discrimination linked to leprosy. There were disempowering caregiving approaches that perceived people affected by leprosy as passive recipients of care.

“There is a demanding need for the establishment of a support and care system grounded in human rights principles,” Miranda-Galarza said, adding that states, countries, and international organizations must incorporate the fundamental rights of individuals affected to access quality care and support into their policy frameworks.

IPS UN Bureau Report

 

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Zero leprosy is not an impossible dream—Yohei Sasakawa, WHO Goodwill Ambassador for Leprosy Elimination at the Global Appeal 2024 to End Stigma and Discrimination Against Persons Affected by Leprosy

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By Unnikrishnan Divakaran Nair and Nirupama Vinayan
LONDON, Jan 31 2024 (IPS)

The 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) marked a pivotal moment in the global efforts to combat climate change. Held in Dubai, United Arab Emirates (UAE) with the participation of delegates from around the world, COP28 showcased a commitment to drive genuine strides in climate action, bringing optimism and progress to the forefront. Here we explore the implications of COP28 outcomes for small and other vulnerable Commonwealth countries and identify the gaps that still need attention. Additionally, it will discuss concrete expectations for COP29, focusing on critical discussions held at COP28.

Unnikrishnan Divakaran Nair

COP28 Highlights

COP28 was distinctive in its comprehensive approach, covering a diverse range of topics crucial for addressing the climate crisis. Notable discussions included the First Global Stocktake, the Operationalization of the Loss and Damage Fund, the Business and Philanthropy Climate Forum, the UAE Leaders’ Declaration on the Global Climate Finance Framework, and the UAE Climate and Health Declaration.

First Global Stocktake

The First Global Stocktake at COP28 provided a comprehensive assessment of collective progress towards the goals of the Paris Agreement. It involved a thorough review of individual countries’ Nationally Determined Contributions (NDCs) and their efforts to limit global temperature rise. This mechanism served as a vital tool for accountability and transparency, fostering a sense of shared responsibility among nations.

For the Commonwealth countries, the Global Stocktake offers an opportunity to showcase their commitment to climate action and demonstrate tangible progress. However, challenges persist in ensuring that the Stocktake remains fair and inclusive, addressing the diverse circumstances of the Commonwealth nations, including those that are particularly vulnerable to the impacts of climate change.

Operationalization of Loss and Damage Fund

Addressing loss and damage associated with the impacts of climate change is a critical aspect of climate action. COP28 saw discussions on the operationalization of the Loss and Damage Fund, aiming to provide financial and technical assistance to countries facing the most severe consequences. For the Commonwealth nations, particularly those in low-lying regions, this initiative is crucial for building resilience and adapting to climate-induced challenges.

Nirupama Vinayan

Despite positive strides, gaps remain in determining the fund’s scale and ensuring swift disbursement to affected countries. COP29 must prioritize finalizing the operational details of the Loss and Damage Fund to ensure its effectiveness and responsiveness in times of need.

Business and Philanthropy Climate Forum

The Business and Philanthropy Climate Forum at COP28 facilitated crucial discussions on the role of private sector engagement and philanthropy in climate action. Commonwealth countries, with their diverse economies, can leverage partnerships with businesses and philanthropic organizations to accelerate sustainable initiatives.

However, challenges persist in ensuring that such collaborations align with the principles of climate justice and contribute to the overall well-being of communities. COP29 should focus on refining frameworks for private sector involvement, emphasizing transparency, accountability, and the alignment of business practices with climate goals.

UAE Leaders’ Declaration on the Global Climate Finance Framework

The UAE Leaders’ Declaration at COP28 outlined a framework for global climate finance, acknowledging the need for increased financial support to developing countries. For Commonwealth nations, many of which are developing economies, this declaration holds promise for accessing the necessary funds to implement ambitious climate actions.

Nevertheless, a significant gap exists in defining the specifics of the finance framework, including the sources of funding and the mechanisms for distribution. COP29 should prioritize establishing a clear and robust climate finance framework to ensure that developing Commonwealth countries receive the support needed for sustainable development.

UAE Climate and Health Declaration

The UAE Climate and Health Declaration emphasized the interconnectedness of climate change and public health. Commonwealth countries, facing diverse health challenges exacerbated by climate impacts, can benefit from a holistic approach that integrates climate and health policies.

While the declaration at COP28 recognized the importance of this intersection, concrete steps for implementation and resource allocation are crucial. COP29 should prioritize the development of strategies that integrate climate and health considerations, ensuring the well-being of Commonwealth populations in the face of a changing climate.

Shaping Expectations for COP29

COP28 concluded on a note of optimism and progress, with participants committing to genuine strides in climate action. However, acknowledging the herculean task ahead is essential. COP29, set to be held in Azerbaijan, becomes a crucial milestone for the international community.

Concrete expectations for COP29 include deciding on a new climate finance goal and framing new and ambitious NDCs. The Commonwealth, as a collective voice for equitable and sustainable growth, is expected to play a more prominent role in the global climate action scene. Ensuring that all parties move as one entity with a clear vision is imperative for deriving the desired outcomes and addressing the gaps highlighted at COP28.

Looking ahead, the international community anticipates decisive actions at COP29, setting the stage for framing new NDCs at COP30, hosted by Brazil. The Commonwealth’s involvement will be pivotal in achieving a sustainable and resilient future, fostering global cooperation and ensuring that no nation is left behind in the pursuit of a climate-safe world.

Unnikrishnan Divakaran Nair is the Head of Climate Change at the Commonwealth Secretariat covering 56 small and other vulnerable Commonwealth countries.

Nirupama Vinayan is an intern at the Commonwealth Secretariat working in the area of climate finance for the small and other vulnerable member countries of the Commonwealth.

IPS UN Bureau

 

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By Jomo Kwame Sundaram
KUALA LUMPUR, Malaysia, Jan 31 2024 (IPS)

Contractionary economic trends since 2008 and ‘geopolitical’ conflicts subverting international cooperation have worsened world conditions, especially in the poorest countries, mainly in Africa, leaving their poor worse off.

Jomo Kwame Sundaram

Conditions and prospects are so bad that two well-known globalisation cheerleaders have appealed to rich nations for urgent action. Former IMF Deputy Managing Director and World Bank Senior Vice-President, Professor Anne Krueger and influential Financial Times columnist Martin Wolf warn ominously of the dire consequences of inaction.

Deepening stagnation
Following tepid growth after the 2008 global financial crisis, Covid-19 disrupted supply chains worldwide. Then, post-pandemic recovery was disrupted by wars in Ukraine and then Gaza.

Food and energy prices soared briefly, largely due to market manipulation by opportunistic investors. Invoking the price hikes as a pretext, the US Fed and European Central Bank raised interest rates, deepening economic stagnation worldwide.

Countries which borrowed heavily during the earlier decade of unconventional monetary policies – especially ‘quantitative easing’, offering easy credit – now have to cope with increasingly unbearable debt burdens, particularly in the global South.

Earlier modest progress in reducing poverty – now termed ‘extreme poverty’ – and food insecurity has slowed sharply, if not worse. For many of the world’s poorest, progress has not only stopped but even been reversed.

The World Bank currently defines the poor as those with daily per capita incomes under US$2.15 in 2017 prices. It estimated those deemed poor fell from 1.87bn – 31% of the world’s population – in 1998 to a forecast of 690mn (9%) in 2023.

The rate of decline of poverty has slowed sharply: global poverty is forecast to fall by a little over three percentage points during 2013-23 – very much less than the 14 percentage points in the decade before 2013.

Poorest mainly in poor countries
The pace of poverty decline has slowed most in the world’s poorest nations. Wolf defines these countries as those deemed eligible for concessional loans from the World Bank Group’s soft-lending arm, the International Development Association (IDA).

Seventy-five countries are now considered eligible for IDA resources, including 39 in Africa. Some – e.g., Bangladesh, Nigeria and Pakistan – can also borrow on costlier terms from financial markets and the Group’s International Bank for Reconstruction and Development.

In IDA-eligible countries, those in extreme poverty fell from 48% in 1998 to 26% in 2023. But this only involved a single percentage point decline over 2013-23, compared to 14 percentage points in the decade before.

Extreme poverty has mainly declined in better-off middle-income countries, with 497 million poor in IDA-eligible countries. With 72% of the world’s total of 691 million poor in IDA-eligible nations, the remaining 193 million were in other countries.

The population share in extreme poverty in countries not IDA-eligible fell from a fifth in 1998 to 3% in 2023, falling by only four percentage points during 2013-23. Expecting modest overall growth, Wolf expects this 3% share will be largely eliminated by 2030.

Hence, he argues that extreme poverty can only end if attention and resources are focused on the world’s poorest countries, where poverty is most concentrated and deeply entrenched.

Unequal debt burdens
Government debt is widespread, but especially debilitating in countries where the poor are most concentrated. The World Bank’s last International Debt Report notes such countries depend too much on unreliable and expensive funding.

The report acknowledges, “For the poorest countries, debt has become a nearly paralysing burden: 28 countries eligible to borrow from [IDA] are now at high risk of debt distress. Eleven are in distress.”

During 2012-21, the external debt share of IDA-eligible countries owed to private creditors jumped from 11.2% to 28.0%! Their debt service payments more than tripled from $26bn in 2012 to $89bn in 2022, as interest due jumped from $6.4bn to $23.6bn!

Meanwhile, the share of bondholders and other private lenders in total government debt fell from 37% in 2021 to 14% in 2022! As the US Fed raised interest rates sharply during 2022-23, investors dumped ‘high-risk’ poor borrowers, lending much less to those in most need.

With this ‘perfect storm’, debt distress should come as no surprise. The 2023 International Debt Report found 56% – over half – of IDA-eligible countries at risk of such distress.

Distress of the poorest
Wolf argues it is in rich nations’ interest and their obligation to provide poor countries with far more concessional finance. But such funding has actually declined in recent decades, especially with the end of the first Cold War over three decades ago.

The IDA is using its 20th replenishment for July 2022 to June 2025 to provide financing on concessional terms. The World Bank president has argued for a much bigger new replenishment ostensibly to accelerate growth, reduce poverty and address other challenges in the poorest countries.

IDA-eligible countries include many of the world’s worst-managed nations, often very fragile, vulnerable to shocks, and stuck in “hard to escape” poverty. But their problems have become pretexts to withhold or withdraw concessional finance from those most in need.

Much more concessional finance and other resources are needed for poor nations to develop sustainably. But reducing sustainable development to simply eliminating poverty, nowadays with climate action, will condemn the poorest developing countries to backwardness.

World financial arrangements have been crucial in undermining fair, sustainable development in poor countries. While it will be critical to enable these nations to overcome their current and imminent predicaments, far more fundamental reforms must quickly follow.

As the poorest developing countries are both weak and vulnerable, needed reforms are nowhere on the horizon. Instead, the ‘international community’ continues to kick the can down the road instead of undertaking bold reforms for the short and medium term.

IPS UN Bureau

 

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Credit: GMB AKASH / UNDP
 
Asia-Pacific countries experienced, on average, six natural disasters a year over the past three decades – about twice as many as developing countries of Latin America and the Caribbean and about three times as many as in sub-Saharan Africa.
 
Governments, central banks, financial supervisors, and multilateral institutions must coordinate and develop a comprehensive strategy to attract more private capital.

By Ritu Basu and Cheng Hoon Lim
WASHINGTON DC, Jan 31 2024 (IPS)

Countries in the Asia-Pacific region face a shortfall of at least $800 billion in climate financing. With public finances depleted by the pandemic, policymakers must unlock the vast potential of private capital to join the fight more effectively against global warming.

Doing so will demand a coordinated and multi-faceted approach by actors on all sides, from governments and central banks to financial supervisors and multilateral institutions. Important strategies include phasing out fossil-fuel subsidies, which have reached a record $1.3 trillion. It will also be key to expand carbon pricing, bridge critical data gaps, and promote innovative financing along with public-private partnerships.

Here’s an explainer based on our latest research, which draws on recent chapters of the Global Financial Stability Report on scaling up climate finance and other IMF studies on climate issues:

• Why is climate finance urgent? Progress is too slow. Global temperatures are set to surpass the critical 1.5 degrees Celsius threshold above pre-industrial levels. Efforts to halve 2019 levels of greenhouse gas emissions by 2030 fall alarmingly short, targeting only an 11 percent reduction. Without stronger action, our warming planet imperils homes, health, and food security. Mobilizing more climate finance is vital not only for mitigating emissions but to build adaptive capacity through investments in climate resilient infrastructure. This is especially important for Asia, which is home to several of the largest emitters and a region acutely vulnerable to climate change due to high population density and geography.

• What makes Asia’s role pivotal? The region’s transition to greater sustainability has global implications. Asia contributed about two-thirds of global growth last year, and will again in 2024, but its heavy reliance on burning coal for energy means that it contributes more than half of harmful global greenhouse gas emissions. Asia’s economies recognize how climate hazards directly impact lives and livelihoods, and have made deeper commitments, as their revised Nationally Determined Contributions under the 2015 Paris Agreement show. Asia can aid the climate fight by demonstrating how to balance economic growth and environmental sustainability.

• How significant is the funding gap? Asia’s emerging market and developing economies need investment of at least $1.1 trillion annually to meet mitigation and adaptation needs. But they’re only getting $333 billion, mostly from sustainable debt instruments like green bonds, and public sources contribute more than half. Such a shortfall leaves these economies with a funding gap of at least $815 billion. China leads in attracting climate finance, making major strides in renewable energy adoption, and its collaborations with the EU have yielded crucial frameworks for sustainable finance, such as the Common Ground Taxonomy and stricter China Green Bond Principles.

• What are the biggest challenges? Pacific island countries and other small economies often have trouble accessing international capital markets or obtaining financing via global climate funds. In particular, they find it hard to meet stringent accreditation requirements of global climate funds as their capacity is already stretched thin and public investment management is challenging. For larger countries, green bonds may be as costly as conventional securities because investors appear to be less trusting of green characteristics in Asia’s sustainable debt instruments. These issues underscore the broader challenges for the region’s funding aspirations.

• What do countries say? A survey of 19 countries in Asia revealed important gaps in data, disclosures, and taxonomies, and that these are exacerbated by inconsistent national climate policies that can promote fossil fuel subsidies. These deficiencies undermine investor confidence in forward-looking targets and transition. Greenwashing also is a risk, respondents say, because it can call into question the legitimacy of environmental claims made by bond issuers. In addition, increasing geoeconomic fragmentation, including friend-shoring and fraying global supply chains, could threaten cooperative and collective action to contain climate change.

Action to unlock much more climate finance requires coordination among agencies overseeing climate initiatives, plus collaboration between local and global entities:

• How can Asia’s governments help? One way will be to comprehensively enhance the framework on data, taxonomies, and disclosures. They should phase out fossil fuel subsidies and expand carbon pricing, which would generate revenue for sustainable public investment. This would help boost investment in green technology, jobs, and growth, while supporting vulnerable households. Measures that strengthen macroeconomic and public investment management will help reduce risk premiums and funding costs, drive economic growth, and attract private capital.

• Where do central banks and financial supervisors fit in? They should promote global standards for transparent and consistent disclosures, while strengthening climate risk analyses and incorporating climate-related financial risks into prudential frameworks to enhance financial stability. Lastly, collaborating with multilateral standard setters to develop internal capacity is crucial for improving the clarity and reliability of ESG score ratings, fostering greater trust and understanding in these evaluations.

• What is the IMF’s role? The Fund is working with member countries to better detail climate-related economic risks and policies in surveillance and lending activities. The IMF also is strengthening data and statistics, including through capacity building and peer learning, to develop common standards for measuring and analyzing climate risk.

• Finally, our Resilience and Sustainability Trust can help vulnerable low- and middle-income countries catalyze financing from other sources by restoring sound macroeconomic management and building the institutional capacity of the public sector. Other multilateral organizations can provide more grant financing and concessional lending, and risk-mitigating mechanisms can help expand their lending capacity. Cooperation among multilateral institutions is essential to align efforts and resources to achieve a balanced allocation between mitigation and adaptation lending.

—This IMF blog reflects research by Cheng Hoon Lim, Ritu Basu, Yan Carriere-Swallow, Ken Kashiwase, Mahmut Kutlukaya, Mike Li, Ehraz Refayet, Dulani Seneviratne, Mouhamadou Sy, and Ruihua Yang.

IPS UN Bureau

 

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The US Secretary of State, Antony Blinken, with CAF President, Dr Patrice Motsepe while on tour in Africa. Some commentators have questioned the effectiveness of US foreign policy in Africa. Credit: CAF media

By Promise Eze
ABUJA, Jan 30 2024 (IPS)

US Secretary of State Antony Blinken’s week-long tour across four African countries was aimed at strengthening the US-Africa relationship—a relationship, according to some commentators, already waning as China and Russia are increasing their influence.

Blinken made his first stop in Cape Verde, a small island in West Africa, where he engaged Prime Minister Ulisses Correia e Silva in discussions and reiterated the US dedication to deepening and expanding its collaborations with Africa. Continuing his diplomatic journey, he then proceeded to Ivory Coast, Nigeria, and concluded his tour in Angola.

While Blicken, on his tour, touted the US as a crucial economic and security ally for Africa, particularly during times of regional and global challenges, analysts say that US foreign policy towards Africa has suggested that the continent may have been “pushed to the back burner.” Their assertions are not baseless.

At the US-Africa Leaders Summit in Washington in November 2022, President Joe Biden made commitments to support democracy in Africa and announced his endorsement for a permanent seat for the African Union at the Group of 20. Biden also promised to visit the continent but that dream never materialised as Washington was preoccupied with a host of global challenges, such as the war in Gaza and the Russia-Ukraine war.

Addressing questions about Biden’s unsuccessful visit during an interview in Nigeria, Blinken defended the president by saying, “It is just the opposite. The President very much wants to come to Africa. We have [had] 17 cabinet-level or department-level officials come since the Africa Leaders Summit.”

US Counterproductive Counter-terrorism Fight

In Abidjan, the capital of Ivory Coast, Secretary of State Antony Blinken pledged USD 45 million to bolster security along the West African coast. This commitment extends the funding for an ongoing program in the region, bringing the total to USD 300 million. Blinken commended the Ivorian military for their counterinsurgency efforts in combating armed groups, acknowledging the difficulty of the region’s location between Mali and Burkina Faso and recognizing hotspots for violence in the Sahel.

For over two decades, the US has made consistent efforts to enhance security and promote democracy, particularly in the Sahel. However, despite these investments, terrorism persists, leading to frequent coups that pose a continuous threat to the stability of the continent.

Last year saw President Mohamed Bazoum of the Niger Republic—a crucial US ally—forcibly ousted from power by disgruntled US–trained military officers. This coup dealt a significant blow to Niger’s sprouting democracy, as President Bazoum had ascended to power through the country’s first democratic elections. Moreover, it marked a setback to the longstanding US endeavours to foster democracy in the Sahel.

Facing international pressure, the coup plotters justified their actions by pointing to President Bazoum’s perceived inability to effectively address the threat of insurgency in the country, despite substantial investments by the US in regional security.

Since 2012, the US has allocated more than USD 500 million in security assistance to Niger, positioning it as the leading recipient of US military aid in West Africa and the second-highest in sub-Saharan Africa.

In addition to having troops on the ground, the US currently operates a drone base in sub-Saharan Africa, a USD 100 million facility based in Agadez. However, despite these advancements, counterinsurgency operations funded by taxpayers have given rise to splinter groups associated with jihadist militancy, causing distress in villages and towns.

Experts attribute the insurgency in Sub-Saharan Africa to the US-led invasion of Libya, which failed to bring stability to the country and resulted in the proliferation of arms and violent groups across the region when foreign fighters, especially the Turareg rebels loyal to Libya’s dictator, Colonel Muammar Gaddafi, fled the country after his death.

A recent report by the Africa Center for Strategic Studies, a US defense department research institution, indicates that the Sahel experienced the largest increase in violent events linked to militant Islamists in the past year compared to any other region in Africa, with 2,737 violent events. The report notes that attacks linked to militant Islamist groups in the Sahel have surged by 3,500% since 2016.

“If the US had not destabilised Libya, there is no way Nigeria, Mali, Niger, Chad, and Burkina Faso would have been in chaos,” argues Zainab Dabo, a Nigerian-based political analyst.

“With military takeovers in [West Africa], along with a general distrust for the West, Blinken is here to offer an irresistible package of promises in a bid to remain relevant, especially in Sub-Saharan Africa, where Russia is gaining influence,’’ she added.

For the US, Russia’s expanding influence in Africa is a cause for worry. The rivalry between the two nations intensified significantly following Russia’s invasion of Ukraine in 2022. Russia justified its actions by citing the US-led NATO expansion in Ukraine, which it deemed a threat. Although the US has refrained from direct involvement in the conflict, it has provided substantial financial and military assistance to Ukraine.

Meanwhile, tensions between the US and Russia are escalating in Africa. This is evident as coup plotters, many of whom have undergone military training in the US, are now ditching the West to seek military support from the Russian-backed private military Wagner group in their efforts to combat terrorism. Russia is also actively seeking to gain influence in Africa and challenge the dominance of the dollar through the BRICS.

However, while the Biden administration is considering designating the Wagner Group, a Russian group, as a terrorist organisation for its human rights violations, the US has always shied away from its own misdeeds in Africa.

US military partnerships on the continent have been marred by a record of human rights abuses, fostering distrust of Western influence.

In Nigeria, where Blicken promised support for improved security, a US-Nigerian airstrike in 2017 hit a refugee camp in Raan, near the Cameroon border, killing at least 115.  Until today, no one has been held accountable for the massacre, and the victims have not gotten justice.

In Somalia, where the US military has conducted numerous airstrikes against the Islamic Jihad group Al-Shabaab for more than a decade, civilian casualties have become inevitable, many leaving family members in agony and with no hope of justice.

In 2020, Amnesty International slammed the US Africa Command (AFRICOM) for killing a woman and a young child in an airstrike in Somalia. Despite the families of the victims of this strike contacting the US Mission to Somalia, Amnesty International reported that neither US diplomatic staff nor AFRICOM had reached out to them to offer reparation.

US, China, Russia and the Scramble for Africa

According to Frank Tietie, a lawyer and human rights activist in Abuja, Nigeria’s capital, Blinken’s visit coincides with a period when America’s influence is perceived to be at a low point in the recent scramble for Africa. Tietie maintains that the US needs to go beyond merely advocating for democracy and should actively match China and Russia’s efforts by deploying both financial and developmental resources.

Since 2003, Chinese foreign direct investment (FDI) in Africa has experienced a substantial increase, rising from a modest USD 74.8 million in 2003 to USD 5.4 billion in 2018. Although it saw a decline to USD 2.7 billion in 2019, the trend reversed, despite the challenges posed by the COVID-19 pandemic, with a resurgence to USD 4.2 billion in 2020. However, concerns arise regarding China’s infrastructural investments and over USD 170 billion worth of loans in Africa, which are perceived as exploitative, given the expectation of natural resources in exchange.

During a meeting with President João Lourenço of Angola, Blinken praised the advancements in one of the US’s most significant investments in Africa: the construction of the Lobito Corridor, a crucial rail link for metals exports from the central African Copper Belt. However, for Tietie, who holds that the US is bent on containing the influence of Russia and China in Africa, such developments are insufficient.

“The gospel of democracy by the Americans [in Africa] has not been able to match the alluring and tantalising presence of the Chinese with their loans and offer to exploit natural resources in exchange for cash. The Americans must do more than ordinary promises, many of which we have had in the past that have not translated to growth and development for African countries,” Tietie told IPS.

For Dabo, Africa, which she described as “the land of opportunities,” will keep being exploited for its natural resources by the US and China if the US does not put its capacities to good use.

IPS UN Bureau Report

 

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UNRWA's funding is in jeopardy after allegations that some staff were involved in the Hamas' October 7 attack in Gaza. The concern is that UNRWA's humanitarian aid is crucial to the Palestinian people in the Gaza Strip. Credit: Hussein Owda/UNRWA

By Naureen Hossain
UNITED NATIONS, Jan 30 2024 (IPS)

The consequences of the investigation into the 12 United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) staffers allegedly linked to the October 7 Hamas attack in Israel have led to major donor countries pulling their support from the UN agency. However, the agency has appealed to the governments to continue the aid in the face of the humanitarian crisis in Gaza.

The first to suspend their funding was the United States on January 26. Since then, donor countries that have suspended funding include Britain, France, Germany, Finland, Canada, and the European Union.

The common reason cited was that funding would not be continued until an outcome was reached following an investigation into the allegations against the UNRWA staff members.

This UN agency is largely dependent on funding from donors, notably leading member states like the United States, which was its largest donor in 2022 with a contribution of more than USD 343 million. In that same year, the United States, Germany, and EU member states were among the largest individual donors, accounting for 61.4 percent of the agency’s overall funding.

Spokesperson Stéphane Dujarric briefed reporters on Monday on the investigation into UNRWA after the Israeli government presented allegations that employees at UNRWA were involved in the October 7.

He confirmed that the UN Office of Internal Oversight (OIOS) has begun its investigation into the agency and that Secretary General António Guterres met with the head of OIOS to ensure that the investigation would be done “as swiftly and as efficiently as possible.”  He also informed reporters that Guterres would be meeting with the UN Permanent Representatives of UNRWA donor countries on Tuesday.

In a separate statement, Guterres expressed that he was “horrified by these accusations.” He also “strongly appealed to the governments that have contributions to, at least, guarantee the continuity of UNRWA’s operations.”

It is crucial that UNRWA’s operations continue in the current humanitarian crisis because 2 million civilians in Gaza depend on the aid it provides.

“No other organization than UNRWA has the infrastructure to do the work that they do,” said Dujarric.

UNRWA’s operations range from providing schooling to shelters to running health care centers. Since the current war between Israel and Hamas, at least 145 UNRWA facilities have been damaged.

In a recent situation report from UNRWA, it was stated that 1.7 million displaced people were sheltered across emergency shelters, both public and those run by UNRWA, adding that these shelters were congested. Only four out of 22 UNRWA health care centers are operational, and 152 staff members have been reported dead. Meanwhile, 3,000 out of the 13,000 UNRWA staff members, the majority of whom are Palestinian, are still in Gaza, continuing their work.

Despite its crucial presence and the urgent needs it addresses, allegations of staff members’ involvement with Hamas have undermined support for UNRWA. The Israeli government provided a dossier to the United States, which detailed the allegations that at least 10 percent of UNRWA were part of Hamas. This dossier has not been shared with the UN, according to Dujarric.

While current measures by UNRWA were to single out the 12 staffers accused and terminate their contracts, the suspension of funds by the major donor countries will have undeniably impacted the entire agency’s operations. The UN has warned that the current funding is insufficient to meet the requirements until February. The fear is that the funds will run out within weeks.

In a statement, UNRWA Commissioner-General Phillipe Lazzarini stated that “it would be immensely irresponsible to sanction an agency and an entire community it serves because of allegations of criminal acts against some individuals, especially at a time of war, displacement, and political crises in the region.”

Lazzarini urged UNRWA to “strengthen its framework for the strict adherence of all staff to humanitarian principles” by calling for an additional independent investigation by outside experts in addition to the OIOS investigation.

IPS UN Bureau Report

 

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Credit: Economic and Social Commission for Asia and the Pacific (ESCAP)

By Sayuri Cocco Okada
BANGKOK, Thailand, Jan 30 2024 (IPS)

Quadrupling in size since 1950, the working age population in Asia and the Pacific now accounts for 67.2 per cent of the total population in the region and is set to peak at 3.3 billion by the mid-2030s.

Now is the moment for Asia and the Pacific to harness this demographic window by investing in a more resilient working age population.

In Asia and the Pacific, the challenges loom large. Two in three workers are in informal employment. If they fall sick, lose a job, have a disability or become old, they have no employment safeguards or social protection to navigate such disruptions and life contingencies.

Half the region’s workforce survives on $5.5 a day, barely enough to lift them out of, or shield them from sliding into, poverty. Unpaid care and domestic workers, are particularly vulnerable as they lack access to income and social protection.

A more resilient workforce is an important step towards eliminating poverty. Effective social protection can mitigate the need of families to resort to measures such as taking a child out of school or selling livestock. Critical ingredients to foster more resilient populations include more comprehensive and inclusive social protection systems and enhanced access to decent employment.

Universal non-contributory social protection schemes can ensure that all persons have access to basic income security to weather disruptions across the lifecycle to enable an adequate standard of living.

Access to universal schemes would also mitigate the risk of the working age population falling into poverty, particularly informal workers, persons with disabilities, women or migrant workers.

ESCAP simulations show that the combined impact of investing in a universal child, disability, maternity and old age benefit can reduce poverty by up to 91.2 per cent at the $3.65 International Poverty Line, and on average decrease inequality by 8.8 per cent for 25 countries in the region, at a cost ranging between 5.1 per cent and 2.6 per cent of GDP.

Figure 1. Investment in universal non-contributory child, disability, maternity and old age benefit can reduce poverty for the total population

While non-contributory schemes ensure a basic level of income security, they should be complemented by job-related contributory schemes to provide more comprehensive and higher levels of income security. However, in two thirds of countries, fewer than half the workforce is contributing into a scheme.

Tackling this challenge requires addressing legal barriers and incentive structures, simplifying administrative procedures, strengthening enforcement measures, as well as enhancing awareness and representation of informal workers.

Some positive measures are being implemented, through the expansion of voluntary or mandatory contributory schemes, adjusting eligibility criteria or providing pension credits for caregivers.

By helping to match labour demand and supply, Active Labour Market Policies (ALMPs) can support the working age population to find decent and productive work through public works, training, re-skilling or job-matching. ALMPs will be critical to smoothen the impacts of trends such as the green transition, population ageing and digitalisation, which will demand new skills whilst phasing out some existing ones.

A majority of studies on vocational and on-the-job training programmes identify increased employability and earnings for trainees throughout the region. In Viet Nam, for example, women who received job-training had a 12 percentage point higher wage than untrained women and men.

However, most countries spend on average only 0.2 per cent of GDP a year on ALMPs. There is a pressing need to invest in public employment programmes along with improving the quantity and quality of training schemes, and enhance collaboration with the private sector, whilst working towards formalising jobs and advancing the decent work agenda.

The impacts of the recent COVID-19 pandemic demonstrated the fragility of hard-won development gains. Against the steady decline of extreme poverty over the past decades, in 2023, due to the fallout from the COVID-19 pandemic and cost of living crisis, 47 million people are expected to have fallen into extreme poverty.

Escalating frequency and intensity of climate change-related shocks will add further pressure on populations. Work-related contributory schemes such as unemployment insurance can act as an automatic stabiliser to build the first layer of resistance against these shocks.

However, unemployment benefits are available to a less than a quarter of the total workforce in the region. Well designed ALMPs can help people access employment opportunities, enhance productivity and increase earnings. When well-coordinated with social protection systems, such as in the case of Turkiye, they can help groups in vulnerable situations access training opportunities needed to re-engage in the labour market.

Other work-related social protection can also support mitigation measures, for example through directing public works programmes towards mangrove restoration or afforestation efforts.

Building the resilience of the working age population will be paramount to maintain and progress sustainable development in Asia and the Pacific. Through extending multipillar social protection systems across the lifecycle and ALMPs, countries are investing in a key group to build resilience to life contingencies, work transitions and climate change: a workforce that is able to override these disruptions and break through cycles of poverty.

Sayuri Cocco Okada is Social Affairs Officer at ESCAP.

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It accuses the military rulers of Mali, Burkina Faso and Niger of not acting in good faith.

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