The world was woefully unprepared for a pandemic. Let’s be ready for the next one | Elhadj As Sy

The Global Preparedness Monitoring Board is calling for a coherent action plan to counter future health emergencies

Two years ago, three months before coronavirus erupted, the Global Preparedness Monitoring Board (GPMB) issued a warning to the international community that a pandemic was only a matter of time, and that the world was not prepared. Tragically, we were proved right.

After 20 months of Covid-19, with nearly five million directly attributed deaths and economic devastation, we say again that the world is not prepared. It has neither the capacity to end the current pandemic in the near future, nor to prevent the next one.

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Apple may cut iPhone 13 production by millions as US warns of Christmas shortages

Shares in Apple fall as global chip shortage and supply chain issues prompt White House to admit there could be empty shelves during festive season

Apple may slash the number of iPhone 13s it will make this year by up to 10m because of a shortage of computer chips amid a worldwide supply chain crunch that led the White House to warn that “there will be things that people can’t get” at Christmas.

Apple was expected to produce 90m units of the new iPhone models this year but has told its manufacturers that the number would be lower because chip suppliers including Broadcom and Texas Instruments were struggling to deliver components, Bloomberg reported on Tuesday.

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Covid pandemic has pushed poor countries to record debt levels – World Bank

‘Tragic reversal’ has set back progress, president says, as he calls for a comprehensive plan

The Covid-19 pandemic has led to a “tragic reversal” in development and pushed debt in poor countries to record levels, the head of the World Bank has said.

David Malpass, the bank’s president, warned the virus had widened the gap between rich and poor nations, setting back progress by years and, in the case of some countries, by a decade.

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IMF to issue downbeat outlook as spectre of stagflation looms

Fund set for a gloomy annual meeting as supply chain issues and inflationary pressures hobble global recovery

Weaker global growth, vaccine protectionism and the spectre of 1970s-style inflation haunting large economies. As the International Monetary Fund prepares for its annual gathering this week, the contrast with the spring could not be more stark.

Back in April, at the Washington-based fund’s last virtual bash, there were sharp upgrades for global growth amid a sense of optimism for the road ahead, led by stronger-than-expected recoveries in the US, UK and other advanced economies. Vaccines would pave the way for the swift unlocking of pandemic restrictions, fuelling a rapid recovery from the worst global recession since the 1930s Great Depression.

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What does the Irish tax deal mean for multinationals?

Tech titans came to Ireland for its tax lures – but may now stay despite Dublin’s agreement to raise its rates

Ireland has dropped its low-tax policy after months of wrangling over the fine print of an Organisation for Economic Co-operation and Development (OECD) agreement to operate a 15% minimum tax rate in more than 130 countries.

Why was Ireland key to a deal on taxing multinationals?

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Ireland ends 12.5% tax rate in OECD global pact

Low-tax policy of past 18 years had attracted multinationals such as Google and Facebook to Dublin

Ireland has dropped its cornerstone low-tax policy of the past 18 years, which helped persuade some of the world’s biggest companies, including Google and Facebook, to site their European headquarters in Dublin.

The decision comes after months of wrangling over the fine print of an Organisation for Economic Co-operation and Development (OECD) agreement to operate a 15% minimum tax rate in more than 130 countries.

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Global deal on 15% minimum tax rate for multinationals edges closer

Almost 140 countries understood to be in final OECD talks on measures to stop firms moving profits to tax havens

Almost 140 countries are edging closer to a global deal on the taxation of multinationals, with agreement on a minimum 15% rate of corporation tax set to be announced as part of a landmark statement at the OECD in Paris on Friday.

Governments representing more than 90% of the world economy are understood to be in the final stages of talks on a global minimum rate and other measures designed to stop multinationals shifting profits into tax havens.

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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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