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World Bank says 26 poorest nations in worst financial shape since 2006
Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen, read the report.
The world’s 26 poorest countries, home to 40% of the most poverty-stricken people, are more in debt than at any time since 2006 and increasingly vulnerable to natural disasters and other shocks, a new World Bank report showed on Sunday.
The report finds that these economies are poorer today on average than they were on the eve of the COVID-19 pandemic, even as the rest of the world has largely recovered from COVID and resumed its growth trajectory, Reuters reported.
Released a week before World Bank and International Monetary Fund annual meetings get underway in Washington, the report confirms a major setback to efforts to eradicate extreme poverty and underscores the World Bank’s efforts this year to raise $100 billion to replenish its financing fund for the world’s poorest countries, the International Development Association (IDA).
The 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on IDA grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72% is at an 18-year high and half of the group are either in debt distress or at high risk of it.
Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen, read the report.
Two-thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said.
“At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline,” World Bank chief economist Indermit Gill said in a statement. “Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered.”
IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by Dec. 6.
Natural disasters have also taken a greater toll on these countries over the past decade. Between 2011 and 2023, natural disasters were associated with average annual losses of 2% of GDP, five times the average among lower-middle-income countries, pointing to the need for much higher investment, the World Bank said.
The report also recommended that these economies, which have large informal sectors operating outside their tax systems, do more to help themselves. This includes improving tax collections by simplifying taxpayer registration and tax administration and improving the efficiency of public spending.
Nooruddin Azizi, Minister of Industry and Commerce of the Islamic Emirate of Afghanistan, met on Thursday with Sadin Ayyıldız, Chargé d’Affaires of the Turkish Embassy in Kabul. During the meeting, Ayyıldız invited the Minister of Industry and Commerce to participate in Turkey’s Antalya Diplomacy Forum.
According to a statement from the Ministry of Industry, the meeting also emphasized the economic, trade, and historical relations between Kabul and Ankara, as well as the export of Afghan goods to Turkey.
The two sides discussed increasing trade volume between the two countries, strengthening economic relations, facilitating and enhancing commercial activities, cooperation in road transport along various routes, activating the Lapis Lazuli Corridor, and regional cooperation.
Azizi, while thanking Turkey for inviting the Islamic Emirate to the Antalya Diplomacy Forum, introduced the Ministry’s technical team to ensure better coordination and planning.
The Antalya Diplomacy Forum is an international conference held annually in Turkey, aimed at examining global challenges and finding joint solutions through dialogue and diplomacy. It hosts representatives from more than 100 countries, including presidents, leaders, high-ranking officials, international organizations, analysts, and media from various countries.
Mullah Mohammad Hassan Akhund, Prime Minister of the Islamic Emirate, in a telephone conversation initiated by Mohammad Anwar Ibrahim, Prime Minister of Malaysia, discussed regional developments, particularly the recent situation between Pakistan and Afghanistan.
Zabihullah Mujahid, spokesperson for the Islamic Emirate, said in a statement that Hassan Akhund stated during the call that the Islamic Emirate of Afghanistan’s principled position is clear and that it believes in resolving issues through mutual understanding and cooperation.
Hassan Akhund added that during Eid al-Fitr, at the request of Saudi Arabia, Turkey, and Qatar, the Islamic Emirate demonstrated its goodwill by respecting a pause in defensive operations.
He stated that violence benefits no party and that actions that increase tensions should be avoided, emphasizing that wisdom and rationality must guide efforts to resolve problems.
He also expressed concern over rising regional tensions following the US and Israeli attacks on Iran.
The Malaysian Prime Minister also expressed concern about the regional situation and hoped that the temporary halt in hostilities between Afghanistan and Pakistan would continue, and that existing problems could be resolved through sincere negotiations and understanding.
He added that Malaysia aims to play a positive role in facilitating understanding between both parties.
Israel’s defence minister says that an Israeli air strike has killed Alireza Tangsiri, commander of the Iranian Revolutionary Guards’ navy.
The killing was carried out “last night, in a precise and lethal operation” and targeted other “senior officers of the naval command”, said Israel Katz, in a video statement.
“The man who was directly responsible for the terrorist operation of mining and blocking the Strait of Hormuz to shipping was blown up and eliminated,” he claimed.
Since the start of the joint US-Israeli war on Iran on February 28, Israel has announced the assassination of several top Iranian officials, including Supreme Leader Ali Khamenei and the Islamic Republic ‘s powerful security chief, Ali Larijani.
Al Jazeera’s Tohid Asadi, reporting from Tehran, said there was no official Iranian confirmation yet of Tangsiri’s killing.
“But if it’s true it’s going to be another major blow for a country that has already experienced a lot of military commanders being killed” since the war began, he said.
The head of the Basij paramilitary forces, Brigadier General Gholamreza Soleimani, and Intelligence Minister Esmail Khatib were also assassinated in Israeli attacks.
Moreover, in recent days, Israeli forces have carried out several strikes targeting the naval assets of Iran.
Last week, Israeli airstrikes hit several Iranian naval ships in the Caspian Sea, including ones equipped with missile systems, support vessels, and patrol craft.
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