IMF boss Kristalina Georgieva ‘faces coup plot’

Renowned economist Joseph Stiglitz says chief is victim of conservative ‘hatchet job’ using unfair report to discredit her

The International Monetary Fund boss, Kristalina Georgieva, is the victim of a plot to oust her, according to a Nobel prize-winning economist, after a report alleged that she applied “undue pressure” on staff to boost China’s standing in global rankings while in her previous job at the World Bank.

Joseph Stiglitz, a former chief economist at the World Bank, said a report prepared by the law firm WilmerHale on concerns about China’s influence at the Washington-based organisation was being used unfairly to “discredit and oust” Georgieva.

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‘A perfect storm’: supply chain crisis could blow world economy off course

From Liverpool to LA, shortages of energy, labour and transport are threatening recovery from Covid

It was all going so well. Successful vaccination programmes were driving the post-pandemic recovery of the global economy, stock markets were back at record highs, and prices were rising just enough to make deflation fears a thing of the past.

But a supply crunch that initially put a question mark over the availability of luxury cars or whether there would be enough PlayStations under our Christmas trees is instead morphing into a full-blown crisis featuring a shortage of energy, labour and transport from Liverpool to Los Angeles, and from Qingdao to Queensland.

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China sends jets and bombers near Taiwan as Beijing opposes island’s trade deal bid

Nuclear-capable bombers entered air defence zone, says Taipei, amid simmering row over competing bids to join regional trade agreement

China has voiced opposition to Taiwan joining a major trans-Pacific trade deal as it flew 24 planes – including two nuclear-capable bombers – into the self-ruled island’s air defence zone, the biggest incursion in weeks, Taiwanese officials said.

Last week Beijing submitted its own application to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

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More than 100 countries face spending cuts as Covid worsens debt crisis, report warns

As pandemic widens inequalities, many developing countries spend more on debt than health, study says

More than 100 countries face cuts to public spending on health, education and social protection as the Covid-19 pandemic compounds already high levels of debt, a new report says.

The International Monetary Fund believes that 35 to 40 countries are “debt distressed” – defined as when a country is experiencing difficulties in servicing its debt, such as when there are arrears or debt restructuring.

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Food fraud and counterfeit cotton: the detectives untangling the global supply chain

Amid the complex web of international trade, proving the authenticity of a product can be near-impossible. But one company is taking the search to the atomic level

Five years ago, the textile giant Welspun found itself mired in a scandal that hinged on a single word: “Egyptian”. At the time, Welspun was manufacturing more than 45m metres of cotton sheets every year – enough to tie a ribbon around the Earth and still have fabric left over for a giant bow. It supplied acres of bed linen to the likes of Walmart and Target, and among the most expensive were those advertised as “100% Egyptian cotton”. For decades, cotton from Egypt has claimed a reputation for being the world’s finest, its fibres so long and silky that it can be spun into soft, luxurious cloth. In Welpsun’s label, the word “Egyptian” was a boast and a promise.

But the label couldn’t always be trusted, it turned out. In 2016, Target carried out an internal investigation that led to a startling discovery: roughly 750,000 of its Welspun “Egyptian cotton” sheets and pillowcases were made with an inferior kind of cotton that didn’t come from Egypt at all. After Target offered its customers refunds and ended its relationship with Welspun, the effects rippled through the industry. Other retailers, checking their bed linen, also found Welspun sheets falsely claiming to be Egyptian cotton. Walmart, which was sued by shoppers who had bought Welspun’s “Egyptian cotton” products, refused to stock Welspun sheets any more. A week after Target made its discoveries public, Welspun had lost more than $700m from its market value. It was cataclysmic for the company.

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The Taliban are not the only threat to Afghanistan. Aid cuts could undo 20 years of progress

The most vulnerable people will bear the cost of sanctions, as services and the economy collapse

Watching Afghanistan’s unfolding trauma, I’ve thought a lot about Mumtaz Ahmed, a young teacher I met a few years ago. Her family fled Kabul during Taliban rule in the late 1990s.

Raised as a refugee in Pakistan, Ahmed had defied the odds and made it to university. Now, she was back in Afghanistan teaching maths in a rural girls’ school. “I came back because I believe in education and I love my country,” she told me. “These girls have a right to learn – without education, Afghanistan has no future.”

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Climate impact of a transatlantic flight could cost global economy $3,000

Economic cost of climate crisis has cut 37% from global GDP this century, say researchers

A return flight from the UK to New York could cost the global economy more than $3,000 (£2,170) in the long run, owing to the effects of the climate crisis, according to a report.

Researchers examined the economic cost of the climate crisis and found it would cut about 37% from global GDP this century, more than twice the drop experienced in the Great Depression.

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Recovery in global trade hit by Covid outbreaks in east Asia

Decline in exports from Taiwan combines with port closures in China and Japan to hinder growth

A recovery in global trade during the summer is beginning to wane, according to some early warning signs pointing to the negative effects of widespread Covid-19 outbreaks in the manufacturing centres of east Asia.

A dramatic decline in exports from Taiwan, which makes many of the computer chips used in cars and mobile phones, has combined with temporary port closures and lockdowns in Australia, China and Japan to cut the level of global trade.

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Economic recovery from Covid ‘running out of steam’ – OECD

Data collected from 38 member countries says UK among the major economies now in the slow lane

The world’s major economies have seen their rapid recovery after easing Covid restrictions begin to run out of steam in the past month as a resurgence in the virus depressed consumer spending, according to the Organisation for Economic Cooperation and Development.

There are signs that the recovery in the US and Japan is losing momentum, the OECD said, while parts of Europe and China have slowed as consumers remain reluctant to eat out, visit attractions and shop as they did before the pandemic.

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If education is such a great investment, it deserves serious international backing

The World Bank and IMF should step in to finance a recovery of children’s learning chances devastated by the pandemic

“Education,” wrote Nelson Mandela, “is the most powerful weapon you can use to change the world.” One wonders what he would have made of the response to the education crisis triggered by the Covid-19 pandemic. A crisis threatening to derail social and economic progress, trapping millions of children in poverty. The UN secretary general has warned of a “generational catastrophe”, yet the international response has been marked by staggering complacency.

That lack of concern was on public display at last week’s Global Education Summit in London. Fresh from cutting UK aid to education by 40%, Boris Johnson – a self-styled champion for universal girls’ education – opened proceedings by declaring that education was “the single best investment we can make in the future of humanity”.

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New Zealand rated best place to survive global societal collapse

Study citing ‘perilous state’ of industrial civilisation ranks temperate islands top for resilience

New Zealand, Iceland, the UK, Tasmania and Ireland are the places best suited to survive a global collapse of society, according to a study.

The researchers said human civilisation was “in a perilous state” due to the highly interconnected and energy-intensive society that had developed and the environmental damage this had caused.

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Failure to help poor countries fight Covid ‘could cost global economy $4.5tn’, says IMF

Fund calls on rich nations to help halt spread of infectious variants through countries with low vaccination rates

The world economy risks losing $4.5tn (£3.3tn) from highly infectious variants of Covid-19 spreading through poor countries where vaccination rates are lower, the International Monetary Fund has warned.

Calling on rich countries to take urgent action to share at least 1bn doses with developing nations, or risk severe economic consequences, the Washington-based fund said the gap between rich and poor economies had widened during the pandemic and risked worsening further next year.

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Delta variant fears send shares down sharply in London and Europe

Investors worry resurgence of Covid-19 cases will slow economic growth and stall global recovery

Fears that the fast-spreading Delta variant of Covid-19 will hurt the global recovery sent stocks sliding on Thursday, as investors worried that economic growth could be slowing.

Shares fell sharply in London and across other European exchanges, after losses in Asia-Pacific markets, on concerns that the economic rebound from the shock of the pandemic may have peaked, and on signs of a slowdown in China.

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Forget GDP, ‘vulnerability index best gauges aid’ to small islands

Commonwealth research says UVI is better measure of small island states’ aid needs, especially on climate

Small island nations on the climate crisis frontlines have been overlooked in overseas aid, according to a new index.

Urging a move away from the current benchmark of using gross domestic product (GDP) to measure aid allocation, researchers from the Commonwealth secretariat and the Foundation for Studies and Research on International Development (Ferdi), a French thinktank, have developed the universal vulnerability index (UVI) as an alternative. GDP, they claim, fails to reflect the realities nations face, particularly on climate.

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Recipe for inflation: how Brexit and Covid made tinned tomatoes a lot dearer

Combine the pandemic with rising raw material costs, stir in a labour shortage, a twist of Brexit, add a pinch of poor weather and voila …

Tinned tomatoes are a taken-for-granted store cupboard staple, relied upon by Britons to whip up home cooked favourites such as spaghetti bolognese. But the price could soon make you take notice, amid warnings of higher shopping bills, set against a backdrop of soaring global food prices.

From the packaging to the transportation and the energy used in manufacturing, nearly all aspects of the production of this popular ingredient now cost more. The crushed tomatoes alone are 30% dearer than a year ago, at €0.48 per kilo. The same pressures are driving the prices of many foods higher, meaning Britons will probably face bigger bills for groceries or meals out this autumn.

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Half of Zimbabweans fell into extreme poverty during Covid

Poor families cannot afford healthcare and schooling but good harvests offer some hope, World Bank finds

The number of Zimbabweans in extreme poverty has reached 7.9 million as the pandemic has delivered another economic shock to the country.

According to the World Bank’s economic and social update report, almost half of Zimbabwe’s population fell into extreme poverty between 2011 and last year, with children bearing the brunt of the misery.

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China rushes through law to counter US and EU sanctions

Foreigners could be placed on an anti-sanctions list and denied entry into China or expelled from the country

China has passed a law to counter foreign sanctions in response to US and EU pressure over trade, technology, Hong Kong and Xinjiang.

Individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list and may be denied entry into China or be expelled from the country. Their assets within China may be seized or frozen and they could be restricted from doing business there.

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Global economy set for fastest recovery for more than 80 years

Slow Covid-19 vaccine progress in low-income countries will widen divisions between rich and poor nations

The global economy is set for the fastest recovery from recession for more than 80 years, but poor nations are at risk of falling further behind wealthy countries amid slow progress with the Covid-19 vaccine, the World Bank has said.

In its half-yearly outlook report, the Washington-based institution said the world economy was forecast to grow at 5.6% this year, in a sharp upgrade from previous estimates it made in January for growth of 4.1%.

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Climate crisis to shrink G7 economies twice as much as Covid-19, says research

G7 countries will lose $5tn a year by 2050 if temperatures rise by 2.6C

The economies of rich countries will shrink by twice as much as they did in the Covid-19 crisis if they fail to tackle rising greenhouse gas emissions, according to research.

The G7 countries – the world’s biggest industrialised economies – will lose 8.5% of GDP a year, or nearly $5tn wiped off their economies, within 30 years if temperatures rise by 2.6C, as they are likely to on the basis of government pledges and policies around the world, according to research from Oxfam and the Swiss Re Institute.

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‘Historic agreement’: Rishi Sunak announces G7 deal on tax reform – video

Finance ministers from the world’s richest economies have agreed a deal to tackle tax abuses by some of the world’s biggest multinationals and establish a minimum global corporation tax for the first time. Announcing the deal, the UK chancellor, Rishi Sunak, said it would create ‘a fairer tax system fit for the 21st century’

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