
War-torn nations face growing poverty and hunger crisis
WASHINGTON: The world's most desperate countries are falling further and further behind, their plight worsened by conflicts that are growing deadlier and more frequent.
That is the sobering conclusion of the World Bank's first comprehensive study of how 39 countries contending with 'fragile and conflict-affected situations'' have fared since the COVID-19 pandemic struck in 2020.
'Economic stagnation — rather than growth — has been the norm in economies hit by conflict and instability,' said Ayhan Kose, the World Bank's deputy chief economist.
Since 2020, the 39 countries, which range from the Marshall Islands in the Pacific to Mozambique in sub-Saharan Africa, have seen their economic output per person fall by an average 1.8 percent a year. In other developing countries, by contrast, it grew by an average of 2.9 percent a year over the same period.
The World Bank finds that countries involved in high-intensity conflict — which result in more than 150 deaths per million people — experience a cumulative drop of 20% in their gross domestic product, or the output of goods and services, after five years.
More than 420 million people in the fragile economies are living on less than $3 a day — the bank's definition of extreme poverty. That is more than the combined total of everywhere else, even though the 39 countries account for less than 15 percent of the world's population.
Many of these countries have long-standing problems with crumbling infrastructure, weak governance, and low educational standards.
People in the 39 countries get an average of just six years of schooling, three years fewer than those in other low- and middle-income countries. Life expectancy is five years shorter, and infant mortality is twice as high.
Increasing conflicts have made things worse.
In the 2000s, the world saw an annual average of just over 6,000 conflicts — in which organized groups used armed force against other groups or civilians and caused at least one death. Now the yearly average exceeds 20,000.
The conflicts are more lethal, too: In the 2000s, they took an average of fewer than 42,000 lives a year. From 2000 through 2024, the number averaged almost 194,000.
Of the 39 countries, 21 are involved in active conflicts, including Ukraine, Sudan, Ethiopia, and Gaza.
The World Bank finds that countries involved in high-intensity conflict — which result in more than 150 deaths per million people — experience a cumulative drop of 20 percent in their gross domestic product, or the output of goods and services, after five years.
More conflict also means more hunger: The World Bank estimated that 18 percent — around 200 million — of the people in the 39 countries are 'experiencing acute food insecurity'' compared with just 1 percent in other low and middle-income countries.
Some countries have managed to escape the cycle of conflict and economic fragility. Kose cites Nepal; Bosnia and Herzegovina; Rwanda; and Sri Lanka as relative success stories.
And the World Bank report notes that the 39 countries do enjoy strengths, including natural resources such as oil and natural gas, and a lot of young, working-age people at a time when many economies are aging.
'Some of them are very rich when it comes to their tourism potential,'' Kose said.
'But you need to have security established. You and I are not going to go and visit these places unless they are safe, even though they might be the most beautiful places in the world.''
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Arab News
2 hours ago
- Arab News
Arbitration court says has jurisdiction in Pakistan's Indus waters case against India
ISLAMABAD: The Permanent Court of Arbitration on Friday ruled that India's decision of holding the Indus Waters Treaty (IWT) in abeyance did not deprive the court of its competence to adjudicate Pakistan's complaints against its neighbor. In its supplemental award on the proceedings instituted by Pakistan against India, the court said it had previously found that once a proceeding before a court of arbitration is properly initiated, as in the present case, 'there must be a strong presumption against the incidental loss of jurisdiction over the matters placed before it by subsequent acts, such as the appointment of a neutral expert.' India announced it was putting the 1960 World Bank-mediated treaty, which ensures water for 80 percent of Pakistani farms, in abeyance a day after an attack in Indian-administered Kashmir that New Delhi blamed on Pakistan, an allegation Islamabad denies. Pakistan has previously said the treaty has no provision for one side to unilaterally pull back and that any blocking of river water flowing to Pakistan will be considered 'an act of war.' In light of the developments, the PCA issued a procedural order on May 16 and requested the parties to provide written submissions on the effect, if any, of these recent developments before the court. Pakistan filed written submissions and no submissions were filed by India, but the court said it had considered New Delhi's position. 'The current phase of the proceedings before the Court concerns the overall interpretation and application of the Treaty's provisions on hydro-electric project design and operation, as well as the legal effect of past decisions of dispute resolution bodies under the Treaty,' it said. 'Accordingly, the text of the Treaty, read in light of its object and purpose, does not to allow either Party, acting unilaterally, to hold in abeyance or suspend an ongoing dispute settlement process.' The IWT grants Pakistan rights to the Indus basin's western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower, while India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes, according to the agreement. On July 6, 2023, the PCA had issued its award on competence after considering India's objections. In a unanimous decision, the court had ruled that it was competent to consider and determine the disputes set forth in Pakistan's request for arbitration in the case. Pakistan had initiated the present arbitral proceedings before the court on August 19, 2016. The South Asian neighbors have been arguing over hydroelectric projects on the shared Indus river and its tributaries for decades, with Pakistan complaining that India's planned hydropower dams will cut flows on the river which feeds 80 percent of its irrigated agriculture. The PCA noted on Friday that the principal issue concerned the implications, if any, that India's decision to hold the treaty in 'abeyance' may have on the competence of the court. 'Paragraph 16 of Annexure G to the Treaty provides that '[s]ubject to the provisions of this Treaty and except as the Parties may otherwise agree, the Court shall decide all questions relating to its competence',' the PCA said. 'Accordingly, the Court found that it was for the Court — and the Court alone — to answer the question before it.' New Delhi's halting of the water agreement was one of a series of tit-for-tat diplomatic measures taken by both countries in the immediate aftermath of the April 22 attack in Kashmir, which resulted in a four-day military conflict between the neighbors in May. The Pakistani government welcomed the supplemental award by the PCA in the IWT case. 'Pakistan welcomes the Supplemental Award by the Court of Arbitration in the Indus Waters matter that has been handed down today and made public on the website of the Permanent Court of Arbitration,' it said in an X post on Friday. 'Pakistan notes that the Court has affirmed its Competence in the light of recent developments and that unilateral action by India cannot deprive either the Court or the Neutral Expert... of their competence to adjudicate the issues before them.' Islamabad said the priority at this point was for India and Pakistan to find a way back to a meaningful dialogue, including on the application of the Indus Waters Treaty. Pakistan is 'ready to engage in a meaningful dialogue with India on all outstanding issues, including Jammu and Kashmir, water, trade and terrorism,' it said, quoting Prime Minister Shehbaz Sharif's comments earlier this week.


Arab News
3 hours ago
- Arab News
Trump says he would consider bombing Iran again, drops sanctions relief plan
WASHINGTON: US President Donald Trump sharply criticized Iran's Supreme Leader, Ali Khamanei, on Friday, dropped plans to lift sanctions on Iran and said he would consider bombing Iran again if Tehran is enriching uranium to worrisome levels. Trump reacted sternly to Khamanei's first remarks after a 12-day conflict with Israel that ended when the United States launched bombing raids last weekend against Iranian nuclear sites. Khamanei said Iran 'slapped America in the face' by launching an attack against a major US base in Qatar following the US bombing raids. Khamanei also said Iran would never surrender. Trump said he had spared Khamanei's life. US officials said on June 15 that Trump had vetoed an Israeli plan to kill the supreme leader. 'His Country was decimated, his three evil Nuclear Sites were OBLITERATED, and I knew EXACTLY where he was sheltered, and would not let Israel, or the US Armed Forces, by far the Greatest and Most Powerful in the World, terminate his life,' Trump said in a social media post. 'I SAVED HIM FROM A VERY UGLY AND IGNOMINIOUS DEATH,' he said. Iran said a potential nuclear deal was conditional on the US ending its 'disrespectful tone' toward the Supreme Leader. 'If President Trump is genuine about wanting a deal, he should put aside the disrespectful and unacceptable tone toward Iran's Supreme Leader, Grand Ayatollah Khamenei, and stop hurting his millions of heartfelt followers,' Iran's Foreign Minister Abbas Araqchi said in a post on X in the early hours of Saturday. Trump also said that in recent days he had been working on the possible removal of sanctions on Iran to give it a chance for a speedy recovery. He said he had now abandoned that effort. 'I get hit with a statement of anger, hatred, and disgust, and immediately dropped all work on sanction relief, and more,' he said. Trump said at a White House news conference that he did not rule out attacking Iran again, when asked about the possibility of new bombing of Iranian nuclear sites if deemed necessary at some point. 'Sure, without question, absolutely,' he said. Trump said he would like inspectors from the International Atomic Energy Agency – the UN nuclear watchdog — or another respected source to be able to inspect Iran's nuclear sites after they were bombed last weekend. Trump has rejected any suggestion that damage to the sites was not as profound as he has said. The IAEA chief, Rafael Grossi, said on Wednesday that ensuring the resumption of IAEA inspections was his top priority as none had taken place since Israel began bombing on June 13. However, Iran's parliament approved moves on Wednesday to suspend such inspections. Araqchi indicated on Friday that Tehran may reject any request by the head of the agency for visits to Iranian nuclear sites. Trump said Iran still wants to meet about the way forward. The White House had said on Thursday that no meeting between the US and an Iranian delegation has been scheduled thus far.


Arab News
5 hours ago
- Arab News
As US inflation edges up, Trump renews criticism of Fed chief, calling him ‘stubborn'
WASHINGTON: The US Federal Reserve's preferred inflation measure logged a mild uptick Friday while spending weakened, triggering another tirade by President Donald Trump against the central bank chair for not cutting interest rates sooner. 'We have a guy that's just a stubborn mule and a stupid person,' Trump told an event at the White House, referring to Fed Chair Jerome Powell. 'He's making a mistake.' With Powell's term as Fed chief coming to an end next year, Trump hinted at his choice of successor: 'I'm going to put somebody that wants to cut rates.' The president's remarks came after government data showed the personal consumption expenditures (PCE) price index climbing 2.3 percent last month from a year ago in May. This was in line with analyst expectations and a slight acceleration from April's 2.2 percent increase, but still a relatively mild uptick. Excluding the volatile food and energy sectors, the PCE price index was up 2.7 percent, rising from April's 2.6 percent uptick, the Commerce Department's report showed. But consumer spending declined, after Trump's fresh tariffs in April dragged on consumer sentiment. PCE dropped by 0.1 percent from the preceding month, reversing an earlier rise. While Trump has imposed sweeping tariffs on most US trading partners since returning to the White House in January — alongside higher rates on imports of steel, aluminum and autos — these have had a muted effect so far on inflation. This is in part because he held off or postponed some of his harshest salvos, while businesses are still running through inventory they stockpiled in anticipation of the levies. But central bank officials have not rushed to slash interest rates, saying they can afford to wait and learn more about the impact of Trump's recent duties. They expect to learn more about the tariffs' effects over the summer. 'The experience of the limited range of tariffs introduced in 2018 suggests that pass-through to consumer prices is intense three-to-six months after their implementation,' warned economists Samuel Tombs and Oliver Allen of Pantheon Macroeconomics in a note. They flagged weakness in consumer spending, in part due to a pullback in autos after buyers rushed to get ahead of levies. And spending on services was tepid even after excluding volatile components, they said. 'There has also been a clear weakening in discretionary services spending, notably in travel and hospitality,' said Michael Pearce, deputy chief US economist at Oxford Economics, in a note. This reflects 'the chilling effect of the plunge in consumer sentiment,' he added. Between April and May, the PCE price index was up 0.1 percent, the Commerce Department report showed. As a July deadline approaches for higher tariff rates to kick in on dozens of economies, all eyes are also on whether countries can reach lasting trade deals with Washington to ease the effects of tariffs. For now, despite the slowing in economic growth, Pearce said risks that inflation could increase will keep the Fed on hold with interest rates 'until much later in the year.'