Category Archives: World Bank

Oil price could exceed $100 a barrel if Middle East conflict worsens, World Bank warns

Posted on by

Increase in cost of crude could drive inflation up and force central banks to keep interest rates high

• Business live – latest updates

A serious escalation of tensions in the Middle East would push the price of oil above $100 (£80) a barrel and reverse the recent downward trend in global inflation, the World Bank has said.

The Washington-based institution said the recent fall in commodity prices had been levelling off even before the recent missile strikes by Iran and Israel – making interest rate decisions for central banks tougher.

Continue reading...

World Bank suspends Tanzania tourism funding after claims of killings and evictions

Posted on by

Plan to expand Ruaha national park has been beset by allegations of abuse, leading bank to withhold final $50m of $150m budget

The World Bank has suspended financing intended to develop tourism in southern Tanzania after allegations of killings, rape and forced evictions.

The bank began investigating last year after being accused of enabling abuses around Ruaha national park, which was due to double in size as part of a World Bank-supported programme.

Continue reading...

Most difficult global outlook since 1930s heralds end of US-led world order | Larry Elliott

Posted on by

IMF has revised up growth forecasts but medium-term prospects remain poor as globalisation goes into reverse

The 2020s are almost halfway over and are on course to be the most difficult decade for the global economy since the 1930s. Every finance minister and central bank governor at the spring meeting of the International Monetary Fund in Washington last week knows that, even if they were not prepared to admit it publicly.

The IMF likes to look on the bright side. It revised up slightly its forecast for global growth and now thinks scarring from the coronavirus pandemic and the cost of living crisis will be less severe than it originally feared. Interest rates have risen without triggering the recessions that were predicted. A soft landing has been finessed. The performance of some countries – the US and India to take two examples – has been strong.

Continue reading...

Covid pandemic made poorest countries even worse off, World Bank warns

Posted on by

Poverty reduction drive all but halted across many nations as Bank calls for more money to tackle a ‘great reversal’

The devastating impact of the pandemic on the world’s poorest countries has brought poverty reduction to a halt and led to a widening income gap with nations in the rich west, the World Bank has warned.

In a report released to coincide with its half-yearly meeting, the Washington-based organisation said half of the world’s 75 poorest nations had seen income per head rise more slowly than in developed countries over the past five years.

Continue reading...

World Bank’s funding of ‘hog hotel’ factory farms under fire over climate effect

Posted on by

Environmental and animal welfare groups call on lender to phase out support for ‘industrial’ livestock operations

The private sector arm of the World Bank is facing claims that it contributes to global heating and the undermining of animal welfare by providing financial support for factory farming, including the building of pig farming tower blocks in China.

A coalition of environmental and animal welfare groups is calling on the World Bank to phase out financial support for large-scale “industrial” livestock operations. More than $1.6bn was provided for industrial farming projects between 2017 and 2023, according to an analysis by campaigners.

Continue reading...

World Bank report finds imminent risk of catastrophic famine in Gaza Strip

Posted on by

Findings come as UN secretary general calls on Israel to give unconditional access to Gaza for aid relief

Half the population of the Gaza Strip is at imminent risk of famine as food shortages approach catastrophic levels for more than a million people, the World Bank has warned.

Almost six months after the war between Israel and Hamas began, the Washington-based Bank said urgent action was needed to prevent widespread deaths from starvation within the next two months.

Continue reading...

China needs to do more on ‘silent crisis’ of debt, says World Bank official

Posted on by

Beijing must be more ready to support countries facing distress, says deputy chief economist

China holds the key to speeding up debt relief and ending the “silent crisis” that is holding back attempts to tackle poverty in the world’s poorest countries, a senior World Bank official has said.

Ayhan Kose, the Bank’s deputy chief economist, said Beijing needed to be more active in negotiations to provide financial support for those countries already in, or close to, debt distress.

Continue reading...

War has left Gaza economy at almost total standstill, says World Bank

Posted on by

Washington-based development organisation providing $20m for citizens suffering ‘multidimensional poverty’

The economy of Gaza has ground to an almost total standstill as a result of the war between Israel and Hamas that has left about 85% of workers without jobs, the World Bank has said.

In an assessment of the economic impact of the two-month-long conflict, the Washington-based development organisation said Gaza was operating at only 16% of its productive capacity and was in “deep recession”.

Continue reading...

World Bank accused of ‘turning blind eye’ to sexual abuse in Kenyan schools it funded

Posted on by

Calls grow for independent inquiry after the bank’s internal watchdog found 21 cases of child sexual abuse by teaching staff

The World Bank has been accused of failing to prevent child abuse at a school chain it funded in Kenya.

The bank’s internal watchdog, the Compliance Advisor Ombudsman (CAO), found that the bank’s International Finance Corporation (IFC) had failed to satisfy its own environmental and social requirements before it started funding Bridge International Academies in 2014, and during its supervision of its investment in the project, which came to an end last year.

Continue reading...

Climate crisis talks resume on ‘loss and damage’ funding for poorest countries

Posted on by

World leaders will reconvene in Abu Dhabi before UAE’s Cop28 after talks broke down two weeks ago

Governments will meet this weekend for a last-ditch attempt to bridge deep divisions between rich and poor countries over how to get money to vulnerable people afflicted by climate disaster.

Talks over funds for “loss and damage”, which refers to the rescue and rehabilitation of countries and communities experiencing the effects of extreme weather, started in March but broke down in rancour two weeks ago.

Continue reading...

Africa’s ‘optimist-in-chief’ on the continent’s renaissance: ‘Don’t just believe me, believe the data’

Posted on by

In an exclusive interview, Akinwumi Adesina, head of the African Development Bank, says the outlook is good for a continent with the workers of the future and the best investment opportunities

Africa holds the future workforce for the ageing economies of the west, according to one of the continent’s leading financial figures, who also said it was time to ditch the myths around corruption and risk.

In an exclusive interview before this weekend’s World Bank meetings in Morocco, Akinwumi Adesina said there was a resurgence of belief in Africa’s economic prospects and attacked negative stereotyping, adding that there was “every reason to be optimistic”.

Continue reading...

IMF clings to a hopeful agenda as crisis follows crisis

Posted on by

At the fund’s annual meeting this week in Morocco, ambitions for climate and debt relief may be overwhelmed by events – again

Last week’s turmoil in the global bond markets will be playing on the minds of finance ministers and central bank governors when they gather in Marrakech this week for the annual meetings of the International Monetary Fund and the World Bank.

After the triple shocks of the Covid pandemic, the war in Ukraine and the surge in inflation, the mood may be less febrile than it was a year ago, but few if any of those travelling to Morocco – which suffered a devastating earthquake last month – would dare say that the crisis era is over. Most will be wondering what might go wrong next.

Continue reading...

Investigation launched into killings and evictions on World Bank tourism project

Posted on by

Tanzania government blamed for violence against villagers in national park, while thousands more people face losing their homes

The World Bank is investigating allegations of killings, rape and forced evictions made by villagers living near the site of a proposed tourism project it is funding in Tanzania.

The bank has been accused of “enabling” alleged violence by the Tanzanian government to make way for a $150m (£123m) project ministers say will protect the environment and attract more tourists to Ruaha national park.

Continue reading...

Australia tells big development banks to ‘lift their game’ in the Pacific

Posted on by

There are concerns the World Bank and ADB are giving contracts to low-price bidders who then demand more when budgets blow out

The Australian government has told big development banks to “lift their game” in the Pacific amid concerns they are approving poor-quality, cut-price projects only for the budgets to blow out.

Largely funded by governments, development banks provide grants and low-cost loans to developing countries to help them build infrastructure and other projects.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Paris finance reforms could untie poor countries’ hands in climate crisis

Posted on by

Changes to the World Bank could unlock developing states access to loans and to the means of staving off disaster

The Netherlands has almost the same amount of solar generating capacity as the whole continent of Africa. That must be, in part, because the interest on a loan to set up a windfarm in Africa is about 17% more than one to do the same in Europe.

Many poor countries enjoy vast natural resources of wind and sun yet struggle to access renewable energy because of the crippling cost of capital imposed on them. Private sector companies perceive far greater risk in poor countries, penalising most heavily the countries in greatest need of investment.

Continue reading...

Ukraine lacks capacity to process huge sums in aid, official admits

Posted on by

Largest amount of money Kyiv previously worked with was $6bn a year in 2014, Mustafa Nayyem says

Ukraine will struggle to absorb the expected billions of western private and public sector aid for its recovery not due to corruption, but a simple lack of capacity to process and invest such huge sums, a senior Ukraine official has said on the eve of the UK-sponsored Ukraine recovery conference in London.

“It is about the capacity to work with this amount of money,” said Mustafa Nayyem, the head of the Ukraine State Agency for Restoration and Infrastructure Development.

Continue reading...

World Bank walking tightrope as it mulls increased lending to poorest

Posted on by

Campaigners say bank should rush to rescue countries facing recession – but can it do so without resulting in mass debt write-offs?

Not since the early 1990s has the world faced such a period of low growth.

Discounting the havoc caused by the financial crash of 2008 and the initial impact of the Covid-19 pandemic, the World Bank says that by the end of 2024 it will have been 30 years since the global economy grew at an average of less than 2% a year.

Continue reading...

Climate-focused reform of World Bank could be done in a year, says Al Gore

Posted on by

Former US vice-president says bank should refocus its spending and end its role in ‘fossil fuel colonialism’

Fundamental reform of the World Bank could be completed within a year, to refocus its spending on the climate crisis and end its contribution to “fossil fuel colonialism”, according to the former US vice-president Al Gore.

“I don’t know why it need take longer than a year,” said Gore, a longtime campaigner on the climate crisis since leaving politics, in an interview with the Guardian at the Cop27 UN climate summit. “We have an emergency on our hands.”

Continue reading...

UK joins calls for World Bank reform to focus funding on climate crisis

Posted on by

Alok Sharma’s intervention puts pressure on Trump-appointed Bank chief who faces calls to resign

The UK has joined calls for sweeping reforms to the World Bank, to focus much-needed funding on the climate crisis, saying that its current structures are not working.

The intervention from Alok Sharma, the current president of the UN climate talks, heaps further pressure on beleaguered World Bank chief, David Malpass. He has faced calls to resign over an apparently climate-dismissing stance, and the Bank’s perceived failures to deliver climate finance.

Continue reading...

Half of poorest countries have cut health spending despite Covid, says Oxfam

Posted on by

Analysis of budgets finds rich nations, including UK, ‘exacerbated explosion of economic inequality’

Many of the world’s poorest countries have cut health spending during the last two years, sometimes to make debt repayments to rich creditors, according to a report by Oxfam that shows inequality between rich and poor nations worsening during the coronavirus pandemic.

Analysis of national budgets across 161 nations found that despite the biggest global health emergency in a century, half of low- and lower-middle-income countries cut health spending, while almost half cut their welfare budgets and almost three-quarters cut education spending.

Continue reading...