A two-year-old girl suffering from malnutrition is fed by her mother at their shelter in Cox’s Bazar, Bangladesh. Credit: UNICEF/Ilvy Njiokiktjien
By Oritro Karim
UNITED NATIONS, Jun 22 2026 (IPS)
Nearly nine years after the violent persecution of the Rohingya minority population in Myanmar and the following mass exodus of refugees, over 1.2 million Rohingya currently reside in neighbouring Bangladesh, where they face immense challenges. With the United Nations (UN) recording significant shortfalls in global humanitarian funding, alongside Bangladesh’s diminishing ability to support these populations, experts warn of a deepening humanitarian crisis.
Described by the UN as “the most persecuted minority in the world,” Rohingya refugees experience a state of statelessness, where they are not legally recognized as citizens by any country and lack legal rights. The vast majority of Rohingya refugees in Bangladesh reside in the densely populated camps of Cox’s Bazar, where they face widespread insecurity and systemic gaps in access to basic services, such as healthcare, education, food, and clean water.
Since early 2024, the UN has recorded an influx of over 150,000 Rohingya refugees into Bangladesh, placing immense pressure on the already overcrowded camps. Domestic resources in Bangladesh are also severely strained as the nation struggles to support these displaced populations while simultaneously sustaining its own citizens.
“Bangladesh has shown extraordinary generosity in hosting this highly vulnerable population, and we are deeply grateful to our donors who have continued to stay the course. Their sustained support remains a lifeline for refugees,” said Rania Dagash-Kamara, Assistant Executive Director for Partnerships and Innovation at the UN World Food Programme (WFP).
“But humanitarian assistance is not the end goal. Rohingya refugees want to return home to Myanmar when they can do so safely, voluntarily, and with dignity. We must continue to help create these conditions; we cannot let this crisis be forgotten,” she added.
According to the Office of the United Nations High Commissioner for Refugees (UNHCR), from 2017 to the end of 2025, the international community has contributed approximately USD 5.42 billion to humanitarian responses to the Rohingya crisis, allowing Bangladesh to sustain its refugee camps and expand access to education, health, and protection services. In May this year, UNHCR, in collaboration with the Government of Bangladesh, launched an appeal for USD 710.5 million to address the most urgent needs of Rohingya refugees and host communities.
Despite the vast and increasing scale of needs, this appeal marks a 26 percent decline compared to 2025, reflecting the UN’s strategy of prioritizing response efforts for the most vulnerable populations and acute needs. Humanitarian funds have largely been exhausted—a direct result of rampant insecurity, further displacement from conflict within Myanmar, and major budget cuts from historically large donors like the U.S.
These shortfalls have significantly compromised humanitarian responses, leaving thousands out of reach of essential services. This is particularly dire for the Rohingya refugees in Bangladesh, as the vast majority are largely dependent on shrinking humanitarian aid for survival. According to UNHCR, in 2025 roughly 35 percent of households relied entirely on humanitarian food assistance, 42 percent earned income through temporary and unstable means, and 23 percent earned income through cash-for-work-based humanitarian programs.
With Rohingya refugees in Bangladesh lacking any form of sustainable income, UN experts project that they could lose “precious gains” in the coming months and years if a safe, voluntary, and dignified return to Myanmar is not established. Limited economic opportunities and reduced humanitarian aid have devastated Rohingya households, leaving many to embark on dangerous voyages in search of better conditions in the region.
2025 marked the deadliest year on record for these voyages, with UNHCR recording nearly 900 Rohingya refugees missing or dead in the Andaman Sea and Bay of Bengal. Over 6,500 Rohingya refugees attempted these voyages that year, with roughly one in seven reported missing or dead–the highest mortality rate for any refugee or migrant sea journeys in the world. The first half of 2026 marked a continuation of this trend, with over 2,800 Rohingya undertaking these dangerous voyages, with over half of them being women and children.
Additionally, persistent cuts to humanitarian funding have significantly strained food rations across the camps in Bangladesh, leaving hundreds of thousands facing acute food insecurity. In April, WFP introduced a tiered, needs-based food assistance approach for Rohingya refugees in Bangladesh, distributing as much as UD 12 per person per month for extremely food-insecure households in Cox’s Bazar, with less insecure households receiving anywhere from $7 to $10.
WFP stated that even at the lowest transfer value, the minimum allotment is sufficient to meet basic food needs. Additionally, the agency cited that this approach was not driven by declining funding but rather by the need for prioritization and equity.
“This alignment reflects our continued commitment to the entire Rohingya community. We will still provide food assistance for everyone in the camps but will target the highest levels of support for those who need it most,” said Simone Parchment, WFP Country Director.
Local representatives and the Rohingya community in Bangladesh have expressed dissatisfaction with this tiered approach, expressing concern that lowered rations at this pivotal time could have deadly consequences for the population and spur further insecurity. Mohammad Mizanur Rahman, Bangladesh’s Refugee Relief and Repatriation Commissioner, told reporters in April that “law and order will be deteriorated”, as the Rohingya attempt to flee the camps in search of food and work opportunities.
Additionally, UNHCR states that reduced humanitarian funding will disproportionately affect women and girls, disabled persons, and older refugees in the Cox’s Bazar camps. An overwhelming lack of critical protection services has led to a rise in rates of gender-based violence, armed group violence, exploitation, and kidnappings.
Furthermore, due to the collapse of healthcare responses for refugees in Cox’s Bazar, alongside persistent overcrowding and a lack of access to clean water, these populations are at a heightened risk of contracting infectious diseases. According to the International Rescue Committee (IRC), as of April 28, there has been a major measles outbreak, which has devastated Rohingya refugee camps and spread across 58 of Bangladesh’s 64 districts.
The IRC has reported over 34,600 suspected cases, including 200 confirmed deaths. Strained health systems and shrinking aid have left thousands of refugee children in the camps without access to routine vaccinations and urgent medical interventions.
“This outbreak is a direct consequence of years of strain on the health system in Bangladesh and caused by lack of resources to meet the needs of local communities and a growing refugee population,” said Hasina Rahman, IRC Bangladesh Director and Asia Deputy Director.
“It is critical that the international community scales up funding for the humanitarian response in Bangladesh to enable the sustained investment in primary healthcare, immunization infrastructure and community health workers.”
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Credit: Coalition of Governments on Global Public Investment
By Ben Phillips
BANGKOK, Thailand, Jun 22 2026 (IPS)
The fallout from the sudden collapse of the old system of financing international cooperation has been disastrous, unleashing a wave of harm and leaving the world more vulnerable to shocks and less able to respond to them. The wreckage is plain to see. The issue is what to do next.
Calling attention to the damage done, several commentators in the Global North have made the case for putting back up what had been pulled down. That will not happen, however. The crisis of financing for international cooperation was a reflection of a crisis of support for the model, and for the narrative of paternalism it embodied. The structure collapsed so fast because it was unsound.
Another set of commentators in the Global North, calling themselves “realists”, have advanced two low-hope ideas for the future international cooperation.
One idea put forward is to accept and find ways to cope with ever shrinking resources for shared global challenges, trying to “do more with less”. This approach would fail. The real-world consequence of attempting it would be failing to adequately resource collective responses to global threats – including pandemics, energy insecurity, natural disasters, and more. This would be existentially dangerous, and orders-of-magnitude more costly for every country than tackling shared threats upstream.
Another idea put forward is to ask the private sector to take over responsibilities which have previously been intergovernmental. This approach would fail too. The real-world consequence of pursuing it would not only be desperately inadequate resourcing of shared threats, and the supercharging of extreme inequality, but also the surrender of accountability and power to oligarchy.
This triptych of unworkable ideas – keep trying to restore the old order, accept managed decline or hand over to the private sector – dominates much of the attention in the Global North.
Thankfully, however, a growing group of Global South governments have been hard at work shaping a solution for the financing of shared global challenges.
Co-convened by the Foreign Ministers of Senegal and Colombia, more than 30 countries have come together in the Coalition of Governments on Global Public Investment, to transform the current global inflection point into a moment of renewal.
“Our challenges are shared; our risks are shared; and increasingly, our solutions must also be shared,” observes Martín Clavijo, Director of Uruguay’s Agency for International Cooperation. “We need an evolution in how we understand cooperation towards a framework in which all countries contribute according to their capacities, all benefit according to their needs, and all participate as equals in decisions about the use of resources.”
“Global public investment is the smart, 21st-century answer to how governments can work together to overcome the challenges and crises that affect us all,” remarks Rosa Yolanda Villavicencio Mapy, Minister of Foreign Affairs of Colombia and co-chair of the coalition. “A significant increase in public financing is essential — and crucially, these resources must be governed under more representative and effective frameworks.”
“We are moving beyond traditional donor-recipient paradigms, towards a more horizontal, inclusive, and partnership-based approach,” shares Cheikh Niang, Minister of Foreign Affairs of Senegal and co-chair of the coalition. “All countries, regardless of their level of development, have both contributions to make and legitimate expectations to express. To solve our national, regional, and global problems, we can’t rely on philanthropy alone, and we can’t just look to the private sector to save us. We need more and better public money to solve our collective challenges.”
Launched in July 2025 at the Fourth International Conference on Financing for Development, the coalition held its inaugural planning meeting in September 2025 on the sidelines of the United Nations General Assembly. This year the governments have gathered in Bogota in March, and in Nairobi in May, and will gather again in New York in September.
Anchored in the Global South, the coalition is also reaching out to countries in the Global North. “We are not looking for sympathy. What we want is an equal partnership,” emphasises Samuel Okudzeto Ablakwa, Minister of Foreign Affairs of Ghana.
“The future of international cooperation must evolve toward approaches that better reflect shared responsibility and collective interest,” points out Limpho Tau, Minister of Foreign Affairs of Lesotho.
The governments are working closely with civil society. “The leaders coming together are pioneers renewing and remaking multilateralism,” says María Elena Agüero, Secretary General of Club de Madrid. “The approach they’re developing together will be fairer than approaches inherited from the last century, by ensuring all countries have a voice and a stake. It will also be much more effective, helping to improve lives across the world.”
The leaders insist on the need to go beyond simply cushioning the present disruption. They are clear that past approaches will not and should not return. Instead, they are working to turn breakdown into breakthrough by bringing countries together as equals to redesign international finance for an interdependent world.
“There is an urgent need for a renewed international financial architecture that is more inclusive, more representative and better aligned with contemporary global realities,” observes Korir Singoei, Principal Secretary, Department for Foreign Affairs of Kenya.
“Do we want to be the generation that managed a crisis — or the generation that transformed the course of global cooperation?” asks Javier Eduardo Martínez-Acha Vásquez, Minister of Foreign Affairs of Panama. “Global public investment can enable us not only to transform international cooperation but to transform the future of humanity.”
The leaders have put together a roadmap for transforming international cooperation by 2030: “A great deal of intellectual effort has been made over years to ensure that an appropriate model was brought forward,” remarks Alva Baptiste, Minister of Foreign Affairs of Saint Lucia. “Now”, he concludes, “we are mandated to get airborne.”
Ben Phillips is the author of How to Fight Inequality, and Public Good: Building a Winning Narrative to Bring the World Together.
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Sephora*, an 18-year-old mother of two, holds her baby girl at the Karibuni wa Mama Clinic supported by SOFEPADI in Bunia, Ituri province, DR Congo, on 25 November 2025. Originally from a remote village, she fled when armed clashes erupted in 2023. Credit: UNICEF / Mirindi Johnson
By Naureen Hossain
UNITED NATIONS, Jun 22 2026 (IPS)
A record number of children were subject to grave violations by parties to armed conflicts, the highest since the UN mandate for children and armed conflict (CAAC) was established in 1996.
In the Secretary-General’s annual report, UN-verified sources confirmed 35,558 violations committed against children during armed conflicts. This is the fourth year in a row that incidents have increased from years.
The data in the report is based on instances occurring in and verified in 2025. At least 24,174 children were directly affected or had their rights violated, through killing and maiming, forced recruitment, abduction, sexual violence, and denial of humanitarian assistance. At least 1 in 3 victims were girls. The killing of children increased by 34 percent compared to incidents from 2024, totaling to 14,224 children killed or maimed. 5129 children were abducted, and there were at least 8322 instances of denial of humanitarian assistance. 6607 children were recruited or used by armed groups, and a total of 1667 children were detained for their actual or alleged connection to armed groups.
For the first time since the CAAC mandate was created, government forces were responsible for the highest number of grave violations. In addition to the killing and maiming of children, government forces were largely responsible for the destruction or military use of schools and hospitals, and the denial of humanitarian access. This sense of impunity is further amplified by hostilities, and in the increasing use of wide-area explosive weapons and in densely populated areas, resulting in more civilian casualties. The use of artificial intelligence and autonomous weapons systems has also transformed.
The states responsible for the highest number of violations included Israel, the occupied Palestinian territories, Myanmar, Somalia, Nigeria and the Democratic Republic of the Congo (DRC). Israeli forces were responsible for nearly one-third of the grave violations in the report — 12,455. In the DRC, 4,114 grave violations against children were committed, including 519 deaths and 1067 abductions.
Vanessa Frazier, the UN Secretary-General’s Special Representative for Children and Armed Conflict, at the release of the Secretary-General’s annual report on children and armed conflict in 2025. Credit: IPS / Naureen Hossain
Under-Secretary-General Vanessa Frazier, the Special Representative for Children and Armed Conflict, warned that the frequency — and intensity — of violations against children reflect a growing disdain for international law and the protected rights of children.
“2025 was without a doubt one of the darkest chapters for child protection since monitoring began,” said Frazier. “When States, on whom the obligation to protect children falls, instead contribute to their suffering, it signals the deeper erosion of respect for international law. The principles of humanity, distinction, proportionality, and necessity must be restored — without exception.”
Frazier told reporters on June 18 that the report is meant to be a “tool of accountability”. It should be used by member states to inform their own actions to take the appropriate steps needed to protect children in armed conflict. In the case of countries named in the report with ongoing situations, this is also an opportunity for them to enter into agreements to reduce and prevent further violations during conflict between now and the following year.
Frazier confirmed that early drafts of the report were shared with these countries back in March, and the countries had at least one month to present their own evidence to be corroborated with the UN-verified data. She added that open dialogue between her office and the countries is encouraged, if those countries choose to engage in the first place.
The report calls on member states to uphold international law to protect civilians, especially children, during times of conflict, through upholding their commitments to existing peace and security agreements. Parties to conflicts are also called on to develop and implement action plans with the UN, and to grant the UN access to conduct thorough monitoring and reporting of grave violations against children.
The report also calls on technology and social media companies to take concrete measures to prevent their platforms from being used by armed groups to recruit and exploit children, and to cooperate with accountability and child protection mechanisms. The misuse of digital technology can have adverse effects on children’s wellbeing even in peaceful contexts. Without sufficient legal guardrails and proper monitoring, children are more likely to be exposed to misinformation and recruitment content.
A senior UN official told Inter Press Service that online recruitment is a pervasive issue across multiple conflict areas, and that more resources need to be mobilized to create responsibility. The official confirmed that Frazier and her office were in contact with lawmakers from the European Union to determine how existing frameworks like the Digital Services Act could protect children. The office is also working with TikTok in Colombia to implement strategies to prevent the recruitment and use of children during conflict.
Frazier called on the state actors to adopt action plans to protect and reintegrate children formerly associated with armed groups. In 2025, 13,112 children received protection and reintegration support with the help of other UN agencies like UNICEF and its partners. This requires funding support from donors and state parties as much as it requires political will. Further investments into accountability and prevention measures among parties in conflicts are also needed, through partnerships with the UN, governments and parties to conflicts.
Before she was the Secretary-General’s Special Representative (SRSG) for Children and Armed Conflict, Frazier was the Permanent Representative of Malta to the UN during its term in the Security Council from 2023-2024. Both in her capacity as SRSG and as a member of the Security Council, Frazier has visited conflict sites and spoken with children directly impacted. She reflected that it was particularly aggravating to see state actors in the list of perpetrators in the report, given that state actors, who are also UN member states, are supposed to be the ones abiding by the rule of law and protecting children. “It’s not acceptable that there are nine state actors listed, irrespective of who they are and how bad they are,” said Frazier.
What was most striking to her is that many of these incidents that resulted in so many child casualties could have been avoided. State actors seem to make the conscious, operational decision to target factories manufacturing weapons or enemy strongholds, regardless of whether civilian infrastructures like schools are nearby and would get caught in the radius. Even if those infrastructures are not the intended target, state actors will follow through with the attacks, which show a disregard for international humanitarian law and a lack of concern for the consequences of civilian casualties. It is children who are suffering the consequences of state actors’ decisions, Frazier said.
“I think for state actors it is worse than non-state actors, because this mandate was originally created to target armed groups and non-state actors; ones who work outside of the law. We cannot have state actors who are supposed to work within the reams of the law, now working outside the reams of the law. That should not be something that is acceptable.”
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Secretary-General Kofi Annan speaks at a ceremony to unveil the official portrait of his predecessor, Boutros Boutros-Ghali. Credit: UN Photo/Eskinder Debebe
By Thalif Deen
UNITED NATIONS, Jun 22 2026 (IPS)
When Egypt’s onetime Foreign Minister Boutros Boutros-Ghali was running for the post of U.N. Secretary-General in late 1991, he had to contend with the rival candidacy of Bernard Chidzero, then foreign minister of Zimbabwe.
As the campaign began to intensify, Boutros-Ghali recounted a brief encounter with Chidzero, a longstanding friend, at a conference in Africa, a continent that at that time claimed the job of U.N. chief on the basis of geographical rotation.
Chidzero, who hailed from an English-speaking country and was backed by the UK and the 54-member Commonwealth of mostly ex-British colonies, was in conversation with Boutros-Ghali when he suddenly switched from English to French.
Having picked up the subtle message, Boutros-Ghali said he put his arms around Chidzero and jokingly remarked, “Bernard, if you want the approval of France, you must not only speak French, but also speak English with a French accent.”
France, a veto-wielding permanent member of the Security Council, has been so passionately protective of its language that it may well have exercised its veto on any candidate who did not speak French.
And no one who aspires to be the Secretary-General of the United Nations can expect to be elected to office if he or she does not have a working knowledge of French—or at least promise to eventually master the language—because France considers it the “language of international diplomacy.”
Which triggers the question: How many of the candidates, both male and female, now running for the next UN Secretary-General are fluent in both English and French?
Over the last 81 years, the two working languages of the United Nations have been primarily English and French, although there are four other official languages recognized by the world body: Chinese, Arabic, Spanish and Russian.
Boutros-Ghali, who was fluent in English, Arabic and French, held “the world’s most impossible job” from January 1992 through December 1996. Asked at a briefing with reporters about his fluency in three languages, Boutros-Ghali jokingly said his primary language was Arabic “because when I fight with my wife, I fight in Arabic.”
The independence of the Secretary-General, he pointed out, is a longstanding myth perpetuated mostly outside the United Nations. As an international civil servant, he is expected to shed his political loyalties when he takes office, and more importantly, never seek or receive instructions from any governments.
But virtually every single Secretary-General—nine at last count—has played ball with the world’s major powers in violation of Article 100 of the UN Charter. Boutros-Ghali, the only Secretary-General to be denied a second term because of a negative US veto, unveiled the insidious political maneuvering that goes inside the glass house.
The US, which preaches the concept of majority rule to the outside world, exercised its veto even though Boutros-Ghali had 14 of the 15 votes in the Security Council, including the votes of the other four permanent members of the Council, namely the UK, France, Russia and China.
In such circumstances, tradition would demand the dissenting US abstain on the vote and respect the wishes of the overwhelming majority in the Security Council. But the US refused to acknowledge the vibrant political support that Boutros-Ghali had garnered in the world body.
Unlike most of his predecessors and successors, Boutros-Ghali refused to blindly play ball with the US despite the fact that he occasionally caved into US pressure at a time when Washington had gained notoriety for trying to manipulate the world body to protect its own national interests.
Going down memory lane, Samir Sanbar, a former UN Assistant Secretary-General, told Inter Press Service last week when Boutros-Ghali met Bernard Chidzero after leaving his post, his former competitor for the SG office asked how come the U.S. insisted on blocking his re-election although he was perceived to be “America’s Yes Man”. With his sense of humor intact, Boutros-Ghali responded that the U.S. Administration did not want just a “Yes, Man but a “Yes Sir, Man”
In his 368-page book titled “Unvanquished: A US-UN Saga” (Random House, 1999), he provided an insider’s view of how the United Nations and its chief administrative officer (CAO) were manipulated by the Organization’s most powerful member: the United States.
Although he was accused by Washington of being “too independent” of the US, he eventually did everything in his power to please the Americans. But still the US was the only country to say “no” to a second five-year term for Boutros-Ghali.
In his book, Boutros-Ghali recalls a meeting in which he tells the then Secretary of State Warren Christopher that many Americans had been appointed to UN jobs “at Washington’s request over the objections of other UN member states.”
“I had done so, I said, because I wanted American support to succeed in my job (as Secretary-General),” Boutros-Ghali says. But Christopher refused to respond.
When he was elected Secretary-General in January 1992, Boutros-Ghali noted that 50 percent of the staff assigned to the UN’s administration and management were Americans, although Washington paid only 25 percent of the UN’s regular budget.
When the Clinton administration took office in Washington in January 1993, Boutros-Ghali was signaled that two of the highest-ranking UN staffers appointed on the recommendation of the outgoing Bush administration– Under-Secretary-General Richard Thornburgh and Under-Secretary-General Joseph Verner Reed — were to be dismissed despite the fact that they were theoretically “international civil servants” answerable only to the world body.
They were both replaced by two other Americans who had the blessings of the Clinton Administration. Just before his election in November 1991, Boutros-Ghali remembers someone telling him that John Bolton, the US Assistant Secretary of State for International Organizations, was “at odds” with the earlier Secretary-General Javier Perez de Cuellar because he had “been insufficiently attentive to American interests.”
“I assured Bolton of my own serious regard for US policy.” “Without American support” Boutros-Ghali told Bolton, “the United Nations would be paralyzed.”
The former UN chief recalls a meeting in which he tells the then Secretary of State Warren Christopher that many Americans had been appointed to UN jobs “at Washington’s request over the objections of other UN member states.” “I had done so, I said, because I wanted American support to succeed in my job (as Secretary-General),” Boutros-Ghali says. But Christopher refused to respond.
Boutros-Ghali also recounted how Secretary of State Warren Christopher had tried to convince him to publicly declare that he would not run for a second term as Secretary-General. But he refused. “Surely, you cannot dismiss the Secretary-General of the United Nations by a unilateral diktat of the United States. What about the rights of the other (14) Security Council members”?, he asked Christopher. But Christopher “mumbled something inaudible and hung up, deeply displeased.”
Boutros-Ghali also said that in late 1996, US Ambassador to the UN Madeleine Albright, on instructions from the US State Department, was fixated on a single issue that had dominated her life for months: the “elimination” of Boutros-Ghali.
Under-Secretary-General Joseph Verner Reed, an American, is quoted as saying that he had heard Albright say: “I will make Boutros think I am his friend; then I will break his legs.” After meticulously observing her, Boutros-Ghali concludes that Albright had accomplished her diplomatic mission with skill.
“She had carried out her campaign with determination, letting pass no opportunity to demolish my authority and tarnish my image, all the while showing a serene face, wearing a friendly smile, and repeating expressions of friendship and admiration,” he writes. “I recalled what a Hindu scholar once said to me: there is no difference between diplomacy and deception.”
In his book, Boutros-Ghali says he was also urged by then-US President Bill Clinton to appoint William Foege, a former head of the US Centres for Disease Control, as UNICEF chief to succeed James Grant, also an American.
Since Belgium and Finland had already put forward “outstanding” women candidates — and since the US had refused to pay its UN dues and was also making “disparaging” remarks about the world body — “there was no longer automatic acceptance by other nations that the director of UNICEF must inevitably be an American man or woman,” said Boutros-Ghali.
“The US should select a woman candidate,” Boutros-Ghali told Albright, “and then I will see what I can do,” since the appointment involved consultation with the then 36-member UNICEF Executive Board.
Albright rolled her eyes and made a face, repeating what had become her standard expression of frustration with me,” he writes.
When the US kept pressing Foege’s candidacy, Boutros-Ghali says that “many countries on the UNICEF Board were angry and (told) me to tell the United States to go to hell.”
The US eventually submitted an alternate woman candidate: Carol Bellamy, a former director of the Peace Corps.
Although Elizabeth Rehn of Finland received 15 votes to Bellamy’s 12 in a straw poll, Boutros-Ghali said he asked the Board president to convince the members to achieve consensus on Bellamy so that the US could continue a monopoly it had held since UNICEF was created in 1947.
This article contains excerpts from a book on the United Nations titled “No Comment—and Don’t Quote Me on That,” authored by Thalif Deen, Senior Editor at Inter Press Service news agency. A former member of the Sri Lanka delegation to the General Assembly sessions, he is a Fulbright scholar with a Master’s Degree in Journalism from Columbia University, New York, and twice (2012-2013) shared the gold medal for excellence in UN reporting awarded annually by the UN Correspondents Association (UNCA). The book is available on Amazon. The link to Amazon via the author’s website follows: https://www.amazon.com/No-Comment-dont-quote-that/dp/064811838X
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People hold electronic candles during a vigil at Liberty Square in Taipei on the anniversary of China’s 1989 crackdown on democracy protesters in Beijing's Tiananmen Square, 4 June 2026. Credit: Cheng-Chia Huang/AFP
By Andrew Firmin
LONDON, Jun 19 2026 (IPS)
When performance artist Sammu Chen tried to tie a red thread to a streetpost, plainclothes police stopped him before he could finish. Chen has twice been detained for his symbolic acts of commemoration of the 4 June 1989 Tiananmen Square Massacre, when Chinese authorities killed hundreds, perhaps thousands, to crush democracy protests.
The day used to one of commemoration in Hong Kong. Tens of thousands used to attend the mass vigil. But authorities banned it during the COVID-19 pandemic and haven’t permitted it since.
Chen’s attempted act of commemoration took place near the former site of the banned vigil. Close by, police moved on another artist marking the anniversary by holding a question mark-shaped balloon. In recent years, other symbolic acts, such as silently holding candles or flowers, have led to arrests. The organisation that used to hold the vigil closed itself down in 2021 following police investigations and prosecution of its leaders.
China’s campaign to stamp out demands for democracy in Hong Kong doesn’t stop at its borders, as events in the UK recently made plain.
UK spy network
Last month, two men with dual British and Chinese nationality were found guilty of spying on Hong Kong democracy activists in the UK. The case showed how far the Chinese state is prepared to go to silence Hong Kong’s diaspora.
Chi Leung Wai, who worked for the UK’s Border Force, and Chung Biu Yuen, who worked for the Hong Kong Economic Trade Office in London, were found to have carried out shadow policing operations to gather information on exiles. The spies also targeted UK politicians critical of China.
One of their targets was Nathan Law. Law was a student leader and politician active in Hong Kong’s democracy movement, which mobilised in mass protests in 2014 and again in 2019. Having spent time in jail in 2017 for his role in protests, he headed into exile in 2020 when the authorities introduced a draconian National Security Law.
In 2023, Law was one of eight activists the Hong Kong police targeted with arrest warrants, with a bounty of around US$130,000 offered as a reward. Hong Kong police took Law’s parents and brother in for questioning, and in 2024, authorities revoked his passport and those of other exiled activists.
Escalating transnational repression
Such is the level of repression China exerts in Hong Kong that activism can only be sustained among the diaspora. But while many states are exerting transnational repression against diasporas and exiles, the spy case shows that China remains the world leader in this field.
Hong Kong police issued a further round of arrest warrants and bounties against six more exiled activists in December 2024 and announced bounties on another 19 in July 2025. Hong Kong authorities have also started targeting exiles with spurious tax demands and may be gearing up to weaponise international anti-money laundering cooperation agreements against them.
Exiles’ families in Hong Kong aren’t spared. In February, Kwok Yin-sang, father of exiled activist Anna Kwok, was handed an eight-month sentence for violating national security laws after he tried to cash in her education savings insurance policy.
Around 100,000 people have fled Hong Kong to the UK, which controlled the territory before handing it over to China in 1997. That makes them a particular target. In 2024, addresses of Hong Kong citizens living in the UK were published online and anti-migrant protesters were encouraged to attack them, in a move that showed all the signs of a Chinese influence operation.
Intensifying domestic repression
As a new CIVICUS report documents, repression has intensified further within Hong Kong. In 2024, authorities introduced the Safeguarding National Security Ordinance, which allows them to criminalise simple acts of dissent by claiming they constitute secession, sedition, subversion and other major crimes. They’ve used this latest law’s sweeping provisions and the 2020 National Security Law to prosecute activists, dissidents and journalists. Since 2020, Hong Kong authorities have arrested at least 365 people and convicted 174 under the two laws. People have been convicted for such trivial offences as wearing T-shirts with protest slogans.
The authorities’ determination to silence dissent was on display again in the aftermath of a horrendous apartment complex fire in November 2025, in which over 160 people died. People were arrested for social media posts calling for accountability . Student Miles Kwan Ching-fung was detained and expelled from university after starting an online petition urging an independent investigation. China’s national security office in Hong Kong warned foreign journalists about negative coverage of the government’s response.
Hong Kong once had one of Asia’s most vibrant media environments, but now it ranks 140th out of 180 on the Reporters Without Borders World Press Freedom Index. In February, media owner Jimmy Lai, whose Apple Daily newspaper championed democracy, received a 20-year sentence under the National Security Law. Lai has been detained under multiple charges since 2019, often in solitary confinement. At 78 years old with diabetes and other reported health problems, he faces dying in jail. Despite Lai’s British citizenship, China has refused international appeals for his release.
The campaign against Lai continues, with four bookshop staff arrested in March on suspicion of selling copies of his biography, deemed a seditious publication. The authorities’ attempts to suppress the book are part of their wider cultural censorship, which extends to banning films, barring publishers from book fairs and demanding the blocking of YouTube videos of the protest anthem ‘Glory to Hong Kong’. In the face of this repression, many civil society organisations, media outlets and political parties have concluded that their only option is to close down.
In these circumstances, it will continue to fall on the diaspora to keep shining a light on the suppression of basic civic freedoms in Hong Kong. States where Hong Kong’s exiles live must be alert to the threats of China’s transnational repression and defend and protect exiled activists. They must confront the full scope of this repression, or be complicit in it.
Andrew Firmin is CIVICUS Editor-in-Chief, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report.
For interviews or more information, please contact research@civicus.org
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Delegates huddle during the informal consultations on cooperation with other international organisations. The climate talks in Bonn were long and tense. Credit: IISD/ENB/Kiara Worth
By Umar Manzoor Shah
BONN, Jun 19 2026 (IPS)
The United Nations June Climate Meetings (SB64) ended in Bonn with sharp disagreements between developed and developing countries over climate finance, adaptation support and emissions reductions, leaving negotiators with significant unresolved issues ahead of the COP31 climate summit in Antalya, Türkiye.
After nearly two weeks of negotiations at the World Conference Center Bonn, delegates acknowledged some progress on technical matters such as technology transfer, capacity building and just transition discussions. However, many of the most politically sensitive issues, particularly adaptation finance and implementation support for developing countries, remained unresolved.
UNFCCC Executive Secretary Simon Stiell described the atmosphere as increasingly difficult, warning against what he called a tendency among countries to wait for others to act first.
“In some negotiating rooms, we’ve heard a familiar tendency towards ‘you-first-ism’ — groups refusing to deliver commitments or allow the process to move forward unless others go first. This is a recipe for gridlock when we need all negotiating tracks to be moving in the fast lane,” Stiell said in his closing assessment.
The Bonn meetings serve as a key preparatory stage for annual UN climate summits. The discussions are intended to advance technical negotiations and lay the groundwork for political decisions at the next Conference of the Parties. This year, however, the meetings exposed deep divisions over who should pay for climate action and how quickly countries should reduce emissions.
Climate negotiators in Bonn. Credit: UN Climate Change/Lara Murillo
Developing countries argued that adaptation remains an urgent priority because millions of people are already suffering from climate-related disasters. They stressed that without substantial financial support, adaptation plans cannot be implemented effectively.
Speaking on behalf of the Group of 77 and China, Uruguay said developing countries remained deeply concerned about the lack of progress on adaptation and adaptation finance.
“Adaptation remains a key priority for developing countries,” the group said, stating that there is a need to move forward in ways that address the growing adaptation needs of vulnerable nations.
The G77 and China also called for greater attention to climate finance commitments under Article 9.1 of the Paris Agreement and stressed the importance of turning discussions into practical action.
“We should move beyond dialogues and reports and translate into effective implementation of climate action,” the group said, noting that agriculture, livelihoods and food security in developing countries are already being affected by climate change.
The European Union acknowledged that some progress had been achieved but said the pace of negotiations remained too slow.
“The pace remains insufficient to meet the scale of the challenge before us,” the EU said in its closing statement. The bloc urged countries to focus on implementing previous climate agreements and reaffirmed support for limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
The EU also expressed frustration over the handling of adaptation negotiations.
“We are extremely disappointed in how GGA negotiations have been handled here in Bonn,” the bloc said, while calling for discussions to continue at a higher political level ahead of COP31.
Several negotiating groups voiced concern over attempts to challenge or weaken scientific findings that underpin international climate action.
The Environmental Integrity Group, represented by Switzerland, warned against efforts to undermine the role of science.
“Science is not negotiable,” the group declared, urging countries to support the timely publication of future reports by the Intergovernmental Panel on Climate Change (IPCC).
The group said scientific evidence had consistently guided global climate action and should remain central to future decisions, including the second Global Stocktake process under the Paris Agreement.
The Umbrella Group, represented by the United Kingdom, echoed similar concerns.
“Our climate action must always be guided by the best available science,” the group said. It expressed disappointment that negotiators were unable to reach more substantial conclusions on research and systematic observation.
The Alliance of Small Island States (AOSIS), representing some of the world’s most climate-vulnerable countries, delivered one of the strongest critiques of the Bonn outcome.
The group said it was disappointed by the pace, tone and approach of the negotiations and warned that insufficient progress had been made to ensure a successful COP31.
“AOSIS is deeply concerned by the attempts that were made across agenda items to place the 1.5 limit in doubt, to overlook and diminish its significance as a lifeline for SIDS,” the group said.
Small island nations face existential threats from sea-level rise, coastal erosion and increasingly severe storms.
AOSIS also criticised the slow progress on adaptation finance and transparency issues, saying procedural obstacles had prevented meaningful advances.
The African Group of Negotiators similarly expressed frustration over the lack of movement on climate finance.
Speaking on behalf of 54 African countries and more than 1.6 billion people, Ghana warned that Africa could not afford delays as climate impacts intensify across the continent.
“Antalya and Addis Ababa must deliver meaningful progress as a solid foundation for GST2,” the group said, referring to the second Global Stocktake process.
African negotiators argued that disputes over governance and terminology should not delay efforts to provide desperately needed adaptation finance for vulnerable communities.
The BASIC group, which includes Brazil, South Africa, India and China, also highlighted concerns over declining support for developing countries.
The group called for climate finance to occupy a central place at COP31 and urged countries to complete the transition of the Adaptation Fund so that it can better support vulnerable nations.
BASIC further stressed that developed countries must take the lead in reducing emissions while also mobilising financial support for developing nations.
The Least Developed Countries (LDC) Group delivered an emotional message, saying vulnerable populations were running out of time.
“LDCs do not look to this process for promises, but for action,” Timor-Leste said on behalf of the 44 least developed countries. “Our people didn’t send us here to negotiate the terms of their suffering.”
The group warned that climate impacts are accelerating faster than international responses.
“We reject the blatant undermining of science at this session,” the LDCs said. “Science is neither contentious nor negotiable for our group.”
The Mountain Group, representing 11 mountainous countries, focused attention on the growing vulnerability of mountain regions. Kyrgyzstan said mountain communities are facing severe challenges from glacier loss, water shortages, floods and ecosystem degradation.
The group welcomed the first formal Dialogue on Mountains and Climate Change and called for mountain issues to become a permanent part of the UN climate process.
Meanwhile, the Like-Minded Developing Countries (LMDCs), represented by China, emphasised equity and the principle of common but differentiated responsibilities as essential foundations for climate cooperation. The group argued that implementation gaps often arise because promised support from developed countries fails to materialise.
Outside the negotiating rooms, civil society organisations sharply criticised the outcome.
Oxfam accused wealthy countries of avoiding their responsibilities on climate finance.
“The UN negotiations have once again been derailed by rich countries’ refusal to take responsibility for increasing critical public climate finance,” said Mariana Paoli, Oxfam’s Climate Policy Lead.
According to Oxfam, even if the pledge to triple adaptation finance were fully implemented, it would provide about $120 billion, far below the estimated adaptation needs of developing countries, which are projected to reach between $310 billion and $365 billion annually by 2035.
Paoli described the situation as a “dark irony,” noting that the world’s first trillionaire emerged at a time when vulnerable countries were struggling to secure adequate climate finance.
“The unwillingness of rich countries to engage meaningfully is astonishing,” she said.
Despite the tensions, negotiators did achieve some notable progress.
Countries agreed on the selection of the United Nations Environment Programme (UNEP) as the new host of the Climate Technology Centre and Network, a key institution supporting technology transfer and climate solutions in developing countries. Several groups welcomed the decision as an important step toward strengthening climate action.
Delegates also reported progress on capacity-building initiatives and discussions surrounding a just transition, which aims to ensure that workers and communities are protected during the shift toward low-carbon economies.
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Women farmers using a thresher; they are beneficiaries of a UNDP project to bring agritech to smallholder farmers. Credit: Ignatius Banda/IPS
By Ignatius Banda
BULAWAYO, Zimbabwe , Jun 19 2026 (IPS)
Long burdened by the labour-intensive nature of agriculture, Zimbabwe’s female farmers are finding relief in new agritechnologies that significantly reduce the time they spend in the field.
With assistance from the United Nations Development Programme (UNDP), female farmers are adopting technologies such as earth augers, multi-crop threshers and grinder-choppers to help them navigate climate resilience and boost production at a time when African countries are facing funding cuts in the agriculture sector, further threatening food security.
As global food prices soar because of the ongoing geopolitical tensions that have disrupted global trade and commerce, female farmers find themselves bearing the high costs of food, but new technologies such as those being introduced for Zimbabwe’s farmers are expected to ease these challenges.
Women in Zimbabwe make up the bulk of small-scale farmers, providing a backbone for the country’s food security efforts, but they have been shut out of agricultural finance, limiting their access to farming inputs and equipment.
According to the Food and Agriculture Organization, “approximately 80% of women live in communal areas, where they constitute 61% of farmers and provide 70% of the labour.”
Despite Zimbabwe’s farm mechanisation drive, there are concerns that the collateral demanded by banks has made it impossible for women to fully participate in the country’s agricultural economy.
According to the UNDP, the Green Climate Fund finances the project to support rural female farmers through labour-saving agri-tech under the Climate Resilient Livelihoods Project, which aims to strengthen climate resilience.
“The initiative is supporting 230 Farmer Field Schools with earth augers, multi-crop threshers and grinder-choppers designed to reduce the physical burden of agricultural labour, improve productivity and strengthen resilience to climate change,” the UNDP said in its June media brief.
“The introduction of labour-saving technologies is helping women reclaim valuable time, reduce physical strain and participate more actively in income-generating activities, community leadership and climate-resilient farming practices,” the agency added.
Across Zimbabwe, rural women face the same challenges: field work overload and taking care of their families, creating both physical and mental strain, experts say.
However, with the introduction of earth auger machines, which are hand-operated and drill the earth to prepare for planting, beneficiaries say they are experiencing significant ease in farming labour practices.
“Digging basins manually was exhausting. The auger brought real relief. We now finish plots fast and plant on time,” said Christine Mudzingwa, a farmer and housewife in Buhera, in the country’s east.
“There’s balance now. I can tend my garden and spend time with my family,” she said, painting a picture of how female farmers have struggled to juggle their multi-tasking routines.
Rural farmers have traditionally literally beat grain to produce livestock feed, and the physically taxing practice has led to poor health, with fatigue being an integral part of the occupational hazards women have to endure.
“Preparing feed for livestock used to take us the whole day,” says Precious Hobane, another smallholder and beneficiary in Gwanda, a low rainfall district in the country’s west. “We chopped stover manually, and it was very tiring work. During harvest time, threshing grain was another difficult task for women.”
The planting season has been difficult for female farmers because they know the work ahead will be exhausting, but simple technologies are providing relief, the farmers say.
“Digging planting basins manually was one of the most exhausting jobs,” says Christine Mudzingwa, from the Manicaland province in the country’s eastern highlands. “You would spend the whole day bent over with a hoe in hard soil. By evening, you were completely worn out, but the work would still not be finished.”
The UNDP intervention has been a great help for the 230 women, who say they can now invest their energy in other, more productive farming endeavours.
“Preparing feed used to take a whole day. Now the grinder-chopper does the heavy work. The machines help us care for livestock during droughts, and women are no longer exhausted,” explains Hobane.
The UNDP partnership with the government of Zimbabwe is part of a broader Green Climate Fund initiative expected to promote climate resilience and boost food production as countries in the Global South continue to seek ways to cushion their populations against climate uncertainty.
“Through this Green Climate Fund Readiness support, Zimbabwe is strengthening the systems, partnerships and investment pathways required to translate its Nationally Determined Contributions (NDCs) ambitions into climate-resilient and low-emission development outcomes,” said Constance Pepukai, the UNDP Nature, Energy and Climate Team Leader, at the launch of the initiative.
The government has welcomed the climate-proofing support as Zimbabwe seeks to boost household food security amid a series of droughts and floods that have further complicated how smallholders navigate the climate crisis.
“The project provides an important platform for aligning climate technology, private sector engagement and project pipeline development with Zimbabwe’s national climate priorities,” says Washington Zhakata, acting Secretary for Environment, Climate and Wildlife.
For now, the beneficiaries of the small agritech remain confident that their working hours are being invested wisely and that if the technology is to spread further to the bulk of the country’s female farmers, taking to the fields could be less daunting.
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Opening ceremony of RightsCon 2025 in Taipei, Taiwan. Credit: Equality Now
By S. Mona Sinha and Mrinalini Dayal
NEW YORK, Jun 19 2026 (IPS)
RightsCon, the world’s leading summit on human rights in the digital age, has served for over a decade as a vital global gathering, bringing together civil society, academics, technologists, policymakers, and the private sector in cross-border collaboration. The abrupt cancellation of RightsCon 2026, following intervention by Zambia’s government just days before the convening was due to commence in Lusaka, should concern us all.
Worryingly, this is not an isolated disruption. It reflects a deeply troubling global pattern of shrinking civic space alongside a rapidly growing, well-resourced, and increasingly networked transnational anti-rights movement. We are calling on civil society, donors, the media, and democratic governments to take a strong stand against these coordinated efforts to undermine human rights and the forums that uphold them.
S. Mona Sinha
Access Now explains RightsCon cancelled due to political interferenceOn May 1, RightsCon organiser and host Access Now released a statement announcing the summit, scheduled to run between May 5 and 8, could not proceed after Zambia announced it was postponing the event to ensure it “aligns with Zambia’s national values, policy priorities, and broader public interest.”
Access Now reported that on April 27, one day after the Zambian Ministry of Technology and Science had endorsed RightsCon, government officials told organisers that diplomats from China were pressuring Zambia because Taiwanese civil society participants were planning to attend. Zambia’s new conditions for allowing the conference to proceed included select topics being moderated and the exclusion of some participants, including Taiwanese civil society representatives.
Access Now has called this interference “transnational repression” and a deliberate effort to project authoritarian preferences across borders and shrink civic spheres.
Mrinalini Dayal
Why RightsCon matters for digital rights and gender equalityDigital rights advocacy is essential to advancing gender equality. That is why Equality Now co-founded the Alliance for Universal Digital Rights (AUDRi), a global campaign working toward a digital future where everyone can enjoy equal rights to safety, freedom, and dignity.
Equality Now and AUDRi were looking forward to returning to RightsCon to reconnect with allies and forge new relationships. Over 500 sessions were scheduled, including two by Equality Now on co-creating solutions to online safety and privacy challenges, and addressing the exclusion of women from artificial intelligence development and other emerging technologies.
Activists have spent months preparing, from developing proposals and collaborating with partners to organising funding, travel, and logistics. Significant time, energy, and resources have been invested that cannot be recouped.
RightsCon is one of the few annual, in-person opportunities where smaller frontline organisations meet potential funders. Locally led groups, particularly those in the Global Majority already grappling with funding cuts and rising competition for limited resources, will be hardest hit by the lost networking, visibility, and donor engagement that sustains their work.
Beyond this substantial loss is the deeply troubling shutting down of a vital locus for dialogue and collective action, alongside a growing anxiety that this will not be the last such disruption of an essential global forum.
RightsCon: a unique mix of diverse voices
RightsCon is the only global, civil society-led convening focused on the intersection of technology and human rights. Other international gatherings on the internet, emerging technologies, and digital governance are generally complex, exclusionary multilateral processes dominated by governments and the tech companies whose products and power are meant to be scrutinised.
Discussions about digital harms, inequality, and the future of our online world are often relegated to the margins or excluded completely, despite their far-reaching consequences. In contrast, RightsCon is where activists set the agenda, and lived experience is central.
Participants working towards safer, inclusive digital futures can share insights and learn from others’ successes and challenges across diverse contexts. The summit’s activist spirit prioritises voices often excluded elsewhere: women and girls, LGBTQI+ communities, Indigenous peoples, and those resisting surveillance and authoritarian rule.
Holding RightsCon in Zambia was a deliberate choice by Access Now intended to lower barriers to participation. For people from Global Majority countries, visa requirements and travel costs to Europe or North America are routinely insurmountable, and increasingly restrictive visa policies are making access evermore difficult. Equality Now staff have been unable to attend UN gatherings in New York for exactly this reason.
The impacts of widespread exclusion from attending consultative and decision-making settings cannot be overstated. That Zambia’s government sought to justify postponing RightsCon on visa grounds, saying some speakers and participants were “subject to pending administrative and security clearances”, is a stark illustration of how bureaucratic levers can be wielded to stifle dissent.
Tech-facilitated gender-based violence
In an increasingly digital world, women and girls face distinct and escalating threats to their rights, safety, privacy, and freedom. The rapid advance of technologies is opening new frontiers for human traffickers, coercers and abusers, but existing legal systems everywhere are ill-equipped to handle these multi-jurisdictional harms.
At RightsCon 2026, we were going to jointly explore legal solutions to the explosion of tech-facilitated gender-based violence. Online violence is rarely, if ever, confined to a ‘virtual’ space; it follows women and girls into their homes and workplaces, and often involves real-world harm including physical violence.
Emerging technologies such as artificial intelligence risk deepening existing inequalities and amplifying misinformation and bias, while expanding surveillance and online exploitation and abuse place fundamental rights and freedoms at risk.
Without civil society-led convenings that centre human rights in digital technologies, it becomes harder to build the intersectional, integrated, responsive movements needed to defend online rights, especially for marginalised communities.
That is precisely why losing this moment hurts so much, and why the issues that RightsCon sought to elevate, including those that governments seek to suppress, must be debated in the global spotlight. At Equality Now and AUDRi, we are planning alternative ways to hold conversations with even wider audiences than a conference format allows. We will not be deterred.
Standing against the pushback on human rights
Equality Now has been tracking the pushback against human rights advocates globally, particularly those working on gender equality and against misogyny and gender-based violence. Even knowing how organised that pushback has become, it is devastating to watch RightsCon become a casualty of it.
The cancellation and the speed of it set a worrying precedent for future international human rights convening. No forum is truly safe from political scrutiny, interference, or silencing.
This is the moment for a coordinated response. Funders must step up to prioritise digital rights and engage with organisations at the convergence of human and digital rights and development. Regional gatherings and alternative spaces need resourcing to replace this year’s RightsCon.
Democratic governments need to defend the right to assemble across borders and scrutinise international pressure that may have shaped RightsCon’s cancellation.
To our peers across the digital rights community: we stand with you. Silencing one convening will not silence the movements behind it. We will continue to organise, collaborate, and defend the freedoms and human rights at stake, because the price of allowing authoritarian pressure to determine who gets to participate, speak, and assemble is simply too high.
S. Mona Sinha, Chief Executive Officer, Equality Now, and Mrinalini Dayal, Global Coordinator of the Alliance for Universal Digital Rights (AUDRi)
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By Jomo Kwame Sundaram and Nurina Malek
KUALA LUMPUR, Malaysia, Jun 19 2026 (IPS)
US President Trump’s policies are supposed to make America great again (MAGA), which means different things to various parties. Some of its consequences are inadvertent, including undermining dollar dominance and inducing stagflation worldwide.
Jomo Kwame Sundaram
Bretton WoodsThe US held 70% of the world’s gold reserves at the time, with gold priced at $35 per ounce. Other central banks bought and held US Treasury bonds and similar dollar assets as liquidity reserves.
This effectively made the US dollar the primary means of payment in the post-war international monetary system. The exchange rates of other national currencies were all set against the dollar.
As other economies recovered post-war, the US current account and trade surplus declined. Until 1971, the International Monetary Fund (IMF) occasionally adjusted fixed exchange rates for ‘structural’ balance-of-payments deficits or surpluses.
Exorbitant privilege
This dollar-based international monetary system gave the US what France’s Gaullist leadership called an ‘exorbitant [economic] privilege’.
Under the Bretton Woods arrangements, the US would never face balance-of-payments problems, as it paid for imports with its own currency, which it could print at will.
Nurina Malek
The US federal government could fund its large and growing budget deficits by selling Treasury bills. This debt is now around $39 trillion, over 125% of annual GDP!Foreign central banks soon became accustomed to holding US Treasury bonds as official reserves, effectively funding the large and growing federal debt.
Such foreign central bank demand kept the dollar strong in foreign exchange markets. Persistent capital inflows into the US have kept the dollar overvalued.
The strong dollar has boosted domestic consumption of imports, depressed exports, widened trade deficits, and kept consumer price inflation in check.
In 1960, Robert Triffin warned the US Congress about the inevitable problems that arise when a national currency is also used as an international reserve currency.
He urged the US Federal Reserve Bank (Fed) to consider the dollar’s international role when making domestic monetary policy.
In August 1971, President Richard Nixon unilaterally ended the US Bretton Woods commitment to redeem dollars with gold. Thus, the dollar clearly became a fiat currency, with exchange rates shaped by market confidence.
Protection through diversification
After the 2009 Great Recession, Western central banks kept nominal interest rates low for over a decade through coordinated ‘quantitative easing’ (QE).
Low interest rates were maintained for over a decade through the 2020-21 Covid-19 recession before the Fed raised interest rates from 2022, ostensibly to address inflationary pressures.
Borrowers worldwide were thus induced to take on more debt. Governments, corporations, and households borrowed more, increasing accumulated debt.
International payment obligations are increasingly being settled by other means. Gradually, dollar-based arrangements are co-existing with euro- and renminbi-based arrangements and BRICS-initiated alternatives.
Thus, US indebtedness and stagnation have been growing with inflationary pressures. Unsurprisingly, other monetary authorities’ previous preference for holding US Treasury bills as official reserves has declined.
Instead, official reserves have been increasingly diversified to include more gold holdings ostensibly to help hedge against inflation and currency debasement.
About 36,200 tonnes, a fifth of all gold holdings, are now held by central banks, up from 15% at the end of 2023. By 2025, non-US central bank gold holdings exceeded their US Treasury bonds for the first time this century!
Trump 2.0
Criticism of the dollar system has resurfaced from time to time, especially as Washington weaponises more financial instruments and arrangements.
The second Trump administration has threatened major US federal government creditors, including China and longtime allies such as Japan and the Gulf monarchies.
As loyal allies are bullied, many are quietly moving away from prevailing dollar-based international monetary and financial arrangements, which have long been preferred for convenience.
After bombing ten nations in the first year of Trump 2.0, US military spending has been rising rapidly, especially with the Iran war and many of its consequences likely to be protracted despite the promise of a ceasefire.
With international confidence in the US consistently undermined by unexpected unilateral White House initiatives, governments are trying to reduce their vulnerabilities, especially by diversifying their reserve assets.
But unlike early in his first term, Trump now welcomes a weaker dollar as “great”. His ongoing efforts to lower Fed interest rates also reflect successive US presidents’ refusal to address ever-larger federal fiscal deficits over the decades.
With inflation rising, market premiums over Fed interest rates are pushing up commercial rates. These hurt the real economy, employment, and banks, many struggling with rising defaults.
All this exacerbates financial ‘market corrections’ in the US and beyond. Trump-induced international disruptions are worsening instability and slowing economies worldwide.
Trump’s policies have slowed the world economy, including the US. With efforts to address the Hormuz crisis undermined by Israel, his legacy will now surely include having induced the first major stagflation in almost half a century.
IPS UN Bureau
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