BlackRock urged to delay debt repayments from crisis-torn Zambia

Anti-poverty campaigners say world’s largest fund manager refuses to reduce or delay payments on Zambia’s debt

BlackRock, the world’s largest fund manager, has come under pressure to delay demands for debt interest payments from Zambia to prevent the crisis-hit African country’s finances from spiralling out of control.

Anti-poverty campaigners said BlackRock, which manages $10tn (£7.68tn) of assets, was among the private sector lenders that had refused to reduce the interest rate or delay payments on Zambian bonds, unlike governments and international agencies that hold the country’s debts.

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We can afford to reverse poverty and climate breakdown. What we can’t afford is the alternative | Kevin Watkins

Our global finance system is failing to rise to the challenges we face. It’s time it was reimagined – and grounded in our shared humanity

“The peoples of the Earth,” Henry Morgenthau said, “are inseparably linked by a deep underlying community of purpose.”

In July 1944, Morgenthau, the US Treasury secretary, was closing the Bretton Woods conference with a reflection on extreme nationalism and the failures of cooperation that had led to war. Cautioning against the pursuit of national interest through “the plan-less, senseless rivalry that divided us”, he outlined an accord for new institutions grounded in an appeal to shared humanity.

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IMF warns China over cost of Covid lockdowns

Hardline approach to pandemic risks damaging global economy, says Kristalina Georgieva

China, the world’s second largest economy, should review its zero-tolerance approach to the pandemic or risk damaging the global recovery, according to the head of International Monetary Fund.

Kristalina Georgieva said Beijing should reassess the use of lockdowns to limit the spread of the highly contagious Omicron variant since it became clear the harm to human health was less severe than the Delta variant.

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Barbados can be a beacon for the region – if it avoids some of its neighbours’ mistakes | Kenneth Mohammed

The Caribbean’s newest republic must avoid the corruption that has hampered Trinidad and Tobago and use its presidency to ensure good governance

The charismatic prime minister of Barbados, Mia Mottley, elevated her country’s status in the world with her stinging speech at Cop26 in Glasgow last month. This speech resonated throughout the West Indies, a region that has largely been devoid of a strong leader to give these vulnerable small island developing states (SIDS) a voice in the climate crisis debate. The survival of SIDS such as Barbados depends on the finance to invest in measures to limit the global temperature rise to 1.5C, which was the Paris agreement’s main objective.

Mottley called on all leaders of developed countries to step up their efforts as she outlined a solution embodied in flexible development finance. First, create a loss and damage fund made up of 1% of revenues from fossil fuels (which she estimated would amount to about $70bn, or £50bn, a year), accessible only to countries that have suffered a climate disaster and loss of 5% of their economy.

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WHO says no deaths reported from Omicron yet as Covid variant spreads

US and Australia become latest countries to confirm locally transmitted cases

The Omicron variant has been detected in at least 38 countries but no deaths have yet been reported, the World Health Organization has said, amid warnings that it could damage the global economic recovery.

The United States and Australia became the latest countries to confirm locally transmitted cases of the variant, as Omicron infections pushed South Africa’s total cases past 3 million.

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Credit Suisse fined £350m over Mozambique ‘tuna bonds’ loan scandal

Bank also pleads guilty to wire fraud and forgives hundred of millions of dollars of debt owed by country

Credit Suisse has been fined nearly £350m by global regulators, pleaded guilty to wire fraud, and agreed to forgive hundreds of millions of dollars worth of debt owed by Mozambique in an attempt to draw a line under the long-running “tuna bonds” loan scandal.

The Swiss banking company had been accused of “serious” failings in its financial crime controls by the UK’s Financial Conduct Authority (FCA), and has entered into a deferred prosecution agreement with the US Department of Justice that will put the bank under heavy monitoring for three years after having “defrauded US and international investors”.

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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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Rishi Sunak to save billions by counting IMF cash as aid for poor

Exclusive: chancellor criticised by former Tory international development secretaries for planned use of $27.4bn windfall

Rishi Sunak is to save billions of pounds by counting as aid financial assistance to poor countries being provided as a result of a windfall Britain has received from the International Monetary Fund (IMF).

In a move that has been condemned by former Conservative international development secretaries, the chancellor has chosen not to use the UK’s share of a new $650bn IMF global fighting fund to increase the share of national output spent on aid.

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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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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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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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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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Covid and the crisis of neoliberalism | Adam Tooze

The year 2020 exposed the risks and weaknesses of the market-driven global system like never before. It’s hard to avoid the sense that a turning point has been reached

If one word could sum up the experience of 2020, it would be disbelief. Between Xi Jinping’s public acknowledgment of the coronavirus outbreak on 20 January 2020, and Joe Biden’s inauguration as the 46th president of the United States precisely a year later, the world was shaken by a disease that in the space of 12 months killed more than 2.2 million people and rendered tens of millions severely ill. Today the official death tolls stands at 4.51 million. The likely figure for excess deaths is more than twice that number. The virus disrupted the daily routine of virtually everyone on the planet, stopped much of public life, closed schools, separated families, interrupted travel and upended the world economy.

To contain the fallout, government support for households, businesses and markets took on dimensions not seen outside wartime. It was not just by far the sharpest economic recession experienced since the second world war, it was qualitatively unique. Never before had there been a collective decision, however haphazard and uneven, to shut large parts of the world’s economy down. It was, as the International Monetary Fund (IMF) put it, “a crisis like no other”.

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The Guardian view on global vaccine inequality: unwise as well as unethical | Editorial

Richer countries must wake up and see the bigger Covid picture

The statistics are stark and shaming. During an exasperated intervention earlier this week, the World Health Organization’s director general, Tedros Adhanom Ghebreyesus, pointed out that of 4.8bn Covid vaccine doses delivered around the world to date, around 75% have gone to just 10 countries. The level of vaccine donations from richer countries, he added with some understatement, has been “really disappointing”. In Africa, where a third wave of the virus has been on the march since May, less than 2% of the continent’s population has received a first dose. While high-income countries across the globe have administered around 100 doses for every 100 citizens, the equivalent figure for low-income countries is 1.5.

As a consequence, while the United States, Britain and other richer nations begin to roll out programmes for booster shots in the autumn, a pandemic of the unvaccinated continues unabated elsewhere. The WHO’s target of reaching 10% of the population of every country with a first shot by the end of September is unlikely to be met. This grotesque inequity, as Mr Ghebreyesus and others have repeatedly pointed out, is ultimately in no one’s interest. Allowing much of the planet to operate as a variant factory, and the more transmissible Delta variant to run riot, stores up trouble for the future. “Vaccinating the world” should therefore be seen as sound strategy as well as an ethical obligation. But, in Europe and North America, early good intentions have so far come a distant second to domestic priorities.

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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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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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Guns, gangs and ‘bad aid’: Haiti’s crisis reaches full throttle

Incessant foreign meddling and corrupt elites have ensured life for Haitians remains mired in violence and poverty. President Moïse’s assassination marks an escalating catastrophe

The Haitian political activist Marie Antoinette Duclair appears to have been unaware that two men on a motorbike were following her car through the badly lit streets of Port-au-Prince.

Her passenger on the night of 29 June was a journalist, Diego Charles. They had been attending a meeting, and she was now, at 11 o’clock at night, dropping him at his home in the Christ-Roi area of Haiti’s capital.

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Protesters call on banks to ‘drop African debt’ in wake of Covid

World’s poorest nations saddled with ‘imprisoning’ debt, hampering responses to the pandemic, say activists protesting HSBC meeting

Activists at a demonstration outside the annual general meeting of HSBC in London have demanded the bank and other financial giants provide debt relief to African countries hit hard by the coronavirus pandemic.

In an attempt to highlight the role of private creditors in the debt crises of the world’s poorest countries, campaigners with “drop the debt” banners gathered outside HSBC’s AGM at the Southbank Centre.

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G20 takes step towards global minimum corporate tax rate

Meetings of finance ministers follow change in US stance, with consensus growing on tackling tax avoidance

G20 finance ministers are exploring a global minimum tax on corporate profits, amid growing international consensus on tackling avoidance after the pandemic.

The virtual meetings between the group of 20 major industrial nations come after the US made the case for an international base rate this week, in a move by the Biden administration to end US resistance to international tax reforms.

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