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Business Recorder
3 hours ago
- Business
- Business Recorder
Surge in conflicts fuels extreme poverty: World Bank
WASHINGTON: Conflicts and related fatalities have more than tripled since the early 2000s, fuelling extreme poverty, the World Bank said Friday. Economies in fragile and conflict-affected regions have become 'the epicentre of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict,' the bank added in a new study. This year, 421 million shaped by the frequency and intensity of conflict,' the bank added in a new study. This year, 421 million people get by on less than $3 a day in places hit by conflict or instability — a situation of extreme poverty — and the number is poised to hit 435 million by 2030. Global attention has been focused on conflicts in Ukraine and the Middle East for the past three years, said World Bank Group chief economist Indermit Gill. But 'half of the countries facing conflict or instability today have been in such conditions for 15 years or more,' he added. Currently, 39 economies are classified as facing such conditions, and 21 of them are in active conflict, the Washington-based development lender said. The list includes Ukraine, Somalia, South Sudan and the West Bank and Gaza. It also includes Iraq although not Iran. The report flagged that moves to prevent conflict can bring high returns, with timely interventions being 'far more cost-effective than responding after violence erupts.' It also said that some of these economies have advantages that could be used to reignite growth, noting that places like Zimbabwe, Mozambique and the Democratic Republic of Congo are rich in minerals key to clean tech like electric vehicles and solar panels.
Arab News
9 hours ago
- Business
- Arab News
Surge in conflicts fuels extreme poverty: World Bank
WASHINGTON: Conflicts and related fatalities have more than tripled since the early 2000s, fueling extreme poverty, the World Bank said in fragile and conflict-affected regions have become 'the epicenter of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict,' the bank added in a new year, 421 million people get by on less than $3 a day in places hit by conflict or instability — a situation of extreme poverty — and the number is poised to hit 435 million by attention has been focused on conflicts in Ukraine and the Middle East for the past three years, said World Bank Group chief economist Indermit 'half of the countries facing conflict or instability today have been in such conditions for 15 years or more,' he 39 economies are classified as facing such conditions, and 21 of them are in active conflict, the Washington-based development lender list includes Ukraine, Somalia, South Sudan and the West Bank and also includes Iraq although not report flagged that moves to prevent conflict can bring high returns, with timely interventions being 'far more cost-effective than responding after violence erupts.'It also said that some of these economies have advantages that could be used to reignite growth, noting that places like Zimbabwe, Mozambique and the Democratic Republic of Congo are rich in minerals key to clean tech like electric vehicles and solar panels.'Economic stagnation — rather than growth — has been the norm in economies hit by conflict and instability over the past decade and a half,' said Ayhan Kose, World Bank Group deputy chief bank's report noted that high-intensity conflicts, which kill more than 150 per million people, are typically followed by a cumulative fall of around 20 percent in GDP per capita after five years.
Al-Ahram Weekly
13 hours ago
- Business
- Al-Ahram Weekly
Surge in conflicts fuels extreme poverty: World Bank - Economy
Conflicts and related fatalities have more than tripled since the early 2000s, fueling extreme poverty, the World Bank said Friday. Economies in fragile and conflict-affected regions have become "the epicenter of global poverty and food insecurity, a situation increasingly shaped by the frequency and intensity of conflict," the bank added in a new study. This year, 421 million people get by on less than $3 a day in places hit by conflict or instability -- a situation of extreme poverty -- and the number is poised to hit 435 million by 2030. Global attention has been focused on conflicts in Ukraine and the Middle East for the past three years, said World Bank Group chief economist Indermit Gill. But "half of the countries facing conflict or instability today have been in such conditions for 15 years or more," he added. Currently, 39 economies are classified as facing such conditions, and 21 of them are in active conflict, the Washington-based development lender said. The list includes Ukraine, Somalia, South Sudan and the West Bank and Gaza. It also includes Iraq although not Iran. The report flagged that moves to prevent conflict can bring high returns, with timely interventions being "far more cost-effective than responding after violence erupts." It also said that some of these economies have advantages that could be used to reignite growth, noting that places like Zimbabwe, Mozambique and the Democratic Republic of Congo are rich in minerals key to clean tech like electric vehicles and solar panels. "Economic stagnation -- rather than growth -- has been the norm in economies hit by conflict and instability over the past decade and a half," said Ayhan Kose, World Bank Group deputy chief economist. The bank's report noted that high-intensity conflicts, which kill more than 150 per million people, are typically followed by a cumulative fall of around 20 percent in GDP per capita after five years. Follow us on: Facebook Instagram Whatsapp Short link:
RTÉ News
19-06-2025
- Business
- RTÉ News
World Bank flags drop in foreign investment to developing countries
The World Bank said in a report today that foreign direct investment (FDI) into developing economies has hit the lowest level since 2005, citing growing trade and investment barriers. Developing countries received just $435 billion of such investment in 2023, the Washington-based development lender added, noting this was the latest year for which data was available. As a share of gross domestic product (GDP), FDI flows to developing economies were at 2.3% in 2023 - about half the level of their peak in 2008. "What we're seeing is a result of public policy," said World Bank chief economist Indermit Gill, noting that investment is falling while public debt is reaching new highs. "In recent years governments have been busy erecting barriers to investment and trade when they should be deliberately taking them down," he added in a statement. Reversing this slowdown is "essential for job creation, sustained growth, and achieving broader development goals," urged World Bank deputy chief economist Ayhan Kose. The bank stressed that FDI can be a strong boost to economic growth. But investment treaties, a catalyst for investment flows, have also fallen in numbers. Between 2010 and 2024, just 380 new investment treaties came into force - less than half the number between 2000 and 2009, when around 870 pacts took effect - the World Bank report found. "Global economic policy uncertainty and geopolitical risk have soared to the highest level since the turn of the century," the report noted. Meanwhile, FDI tends to be concentrated in larger economies. Two-thirds of FDI flows to developing economies between 2012 and 2023 went to just 10 countries, with China, India and Brazil jointly receiving almost half of total FDI inflows to emerging market and developing economies. The 26 poorest countries received "barely 2% of the total," the report added. The World Bank urged for stronger global cooperation to help direct funding towards developing economies with the biggest investment gaps.
Arab News
17-06-2025
- Business
- Arab News
FDI into developing economies slumps to lowest level since 2005: World Bank
RIYADH: Foreign direct investment flows into developing economies dropped to $435 billion in 2023, the lowest level since 2005, as rising trade barriers, geopolitical tensions and growing fragmentation curbed cross-border investment. In its Global Economic Prospects report, the World Bank said FDI into advanced economies also dropped, sinking to $336 billion — the weakest level since 1996. While data for the 2023 calendar year is the latest available from the World Bank, net FDI into Saudi Arabia — one of the world's top emerging markets — reached SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a 26 percent increase compared to the previous three months, according to the Kingdom's General Authority for Statistics. Saudi Arabia is aiming to attract $100 billion in FDI annually by the end of this decade, as it seeks to make significant strides in diversifying its economy and reducing its decades-long dependence on oil revenues. Commenting on the findings, Indermit Gill, chief economist and senior vice president of the World Bank Group, said: 'What we're seeing is a result of public policy. It's not a coincidence that FDI is plumbing new lows at the same time that public debt is reaching record highs.' He added: 'Private investment will now have to power economic growth, and FDI happens to be one of the most productive forms of private investment. Yet, in recent years, governments have been busy erecting barriers to investment and trade when they should be deliberately taking them down. They will have to ditch that bad habit.' FDI inflows to developing countries in 2023 accounted for just 2.3 percent of their combined gross domestic product — about half the share recorded in the 2008 peak. The report noted that inflows had expanded rapidly in the 2000s, peaking at nearly 5 percent of GDP in 2008, but have since steadily declined. Between 2012 and 2023, two-thirds of FDI into developing countries was concentrated in just 10 markets. China captured nearly a third of the total, while Brazil and India accounted for about 10 percent and 6 percent, respectively. Advanced economies accounted for nearly 90 percent of total FDI in developing economies over the past decade, with about half of that originating from the EU and the US, the World Bank noted. Earlier this month, global credit rating agency S&P Global said FDI inflows into Gulf Cooperation Council countries are expected to slow in 2025 due to rising investor uncertainty. The outlook reflects shifting US trade policies, lower oil prices, and a more gradual rollout of economic diversification projects in the region. S&P Global also forecast a net negative impact on global FDI in the near term, driven by the indirect effects of US tariffs, a weaker oil price outlook, and declining global investor confidence. Combating challenges and easing restrictions The World Bank urged developing nations to ease investment restrictions that have accumulated in recent years, promote trade integration, and broaden participation in their economies. Ayhan Kose, the World Bank Group's deputy chief economist and director of the Prospects Group, said the sharp drop in FDI for developing countries 'should sound alarm bells.' He added: 'Reversing this slowdown is not just an economic imperative — it's essential for job creation, sustained growth, and achieving broader development goals. It will require bold domestic reforms to improve the business climate and decisive global cooperation to revive cross-border investment.' The report also outlined policy priorities for developing economies to increase FDI, including accelerating improvements in the investment climate — progress that has stalled in many countries over the past decade. Saudi Arabia is among the countries making notable strides to attract FDI by introducing regulatory reforms aimed at easing restrictions. In August, the Kingdom approved an updated investment law designed to boost transparency and simplify the investment process, as part of broader efforts to facilitate and expand FDI. The updated rule also promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers. In April, Saudi Arabia rose to 13th place in Kearney's 2025 Foreign Direct Investment Confidence Index, up from 14th in the previous year's ranking. The Kingdom also retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy. Kearney noted that the ranking reflects Saudi Arabia's bold, reform-driven approach to building an internationally competitive, future-ready economy. The World Bank emphasized that countries should amplify the economic impacts of foreign investment by promoting trade integration, improving institutional quality, fostering human capital development, and encouraging broader participation in the formal economy to maximize FDI benefits. 'Governments can also amplify the benefits by channeling FDI to sectors where the impact is greatest. FDI can also help increase job opportunities for women: the domestic affiliates of multinational enterprises, for example, tend to have a higher share of female employees than domestic firms,' the report stated. Saudi Arabia is also among the global frontrunners in efforts to bridge the gender gap in the workforce. Speaking during the Future Investment Initiative in Riyadh in October, Saudi Arabia's Minister of Finance, Mohammed Al-Jadaan, said the nation aims to achieve 40 percent female workforce participation by the end of the decade, having already surpassed its Vision 2030 target of 30 percent. He added that 45 percent of small and medium enterprises in the Kingdom are headed by women. Underscoring the importance of global cooperation, the World Bank urged all countries to work together to accelerate policy initiatives that can help direct FDI flows to developing economies with the largest investment gaps. 'Technical and financial assistance to support structural reform efforts in developing countries — especially low-income countries — are critical for facilitating FDI inflows,' the bank concluded.
