Category Archives: Resource Based Economy

Prime Minister Zoran Zaevs new cabinet is confronted with a number of economic challenges, exacerbated by the economic hit to the global economy caused by the pandemic In 2021, North Macedonia will take economic decisions that will shape the course of the countrys future.

Despite a modest population of 2-million, North Macedonia repeatedly makes headlines, often due to apparently intractable disputes with neighbouring countries. Athenss trade embargo imposed on North Macedonia in the 1990s marked the start of a 27 year deadlock between the two countries, which ultimately stalled North Macedonias accession to the EU. Only recently did Skopje resolve the dispute with neighbouring Greece over its official name which Greece had previously taken issue with due to the fact that Macedonia is also a region of Greece, and the use of this name was interpreted by Greece to be an assertion of territorial ambitions in the region.

This dispute affected the countrys other diplomatic ventures. In 1999, North Macedonia was one of the first post-Yugoslav signatories of the NATO membership action plan, only to have its accession vetoed by Greece in 2008. Ultimately, North Macedonias Stabilization and Association Agreement with the EU has not been the diplomatic catalyst that Skopje hoped would ease localised tensions and draw it into a closer relationship with Brussels.

Under the leadership of Nikola Gruveski (2006-2016), corruption and state capture were endemic in North Macedonia. Gruveksi was averse to opening negotiations with mainstream governments in Greece and it was not until the centre-left Social Democratic Union of Macedonia ousted Gruveski out of power, that there was a breakthrough. Gruveskis successor, Zoran Zaev, capitalised on Greek Prime Minister Tsiprass reformism to broker the controversial Prespa Agreement which settled the name dispute. Two years later, North Macedonia was finally admitted to NATO, demonstrating that Greece was the final hurdle to NATO membership.

A tamed economy

However, North Macedonia soon found that NATO membership was not a passport to joining the EU. Internal ethnic tensions have created friction with EU member states. Relations with Bulgaria soured during the election campaign for July 2020 during which the campaigns of both main political parties played on anti-Bulgarian sentiment..Zaev managed to gain power by agreeing to a coalition with the main part of the Albanian minority. The new cabinets economic hurdles, specifically fiscal redistribution, could be exacerbated by renewed ethnic tensions between the Slav majority and the Albanian minority. Should tensions reach the levels of the 2001 civil conflict, the deepening of this fracture would slow down reforms and deter investments.

The Balkan countries suffered greatly during the Great Recession due to their proximity to the Greek economy at a time when Athens navigated the worst slowdown of recent history. As Greeces second largest export partner, the RNM was particularly hard hit(Figure 3a). The region had barely entered recovery before lockdown measures crippled world economic growth. In addition, North Macedonias small internal market is heavily reliant on external demand which the crisis has depleted. In Q1-Q2 2020, exports fell by 22.3% and industrial production by 14.6% compared to the same period of the previous year. Thus, GDP fell by 14.9% in Q2 of 2020 and another 3.3% in Q3 contrary to the projected 3.2 percent growth (Figure 7). Whilst forecasts suggest growth of 5.5% in 2021, the unpredictability of the pandemics economic influence may yet compromise this figure.

Meanwhile, rating agencies downgraded North Macedonias national debt, in turn raising financing costs. the RNMs debt was downgraded by some rating agencies, raising financing costs. Fitch, the American credit rating agency, as well as Moodys, another US-based credit rating agency, both value North Macedonias debt as a non-recommended investment asset to be reserved for short-term gain. Since May 2020 the outlook has been negative, suggesting the situation will worsen. Yet, with one of the comparatively smallest debt-GDPs of the region, these ratings are still the best in South-Eastern Europe after Bulgaria meaning the RNM has a relatively solid economic base (Figure 4).

The countrys effective response to the pandemic is in part the reason that North Macedonia is economically stronger than some of its neighbours. The caretaker government introduced a furlough scheme, worth approximately 5.5 percent of GDP, as well as a helicopter money initiative. Going forward, the government is prioritising policies that will stimulate economic growth such as slashing parafiscal charges and cutting VAT. Yet, since North Macedonia lacks the economic resources to commit to long-term reform, recovery will be slow.

North Macedonia is contending with mass emigration in tandem with declining fertility rates (Figure 5) both of which reduce human capital. The official estimate of two-million residents is dubitable, with some experts hypothesising an actual figure of approximately 1.5 million. Inaccurate projections of a states total population jeopardises effective government decision making. In the RNM, where the resources are redistributed amongst ethnic groups pro quota, this makes fiscal management particularly difficult. If, for example, the proportion of Albanians of the total population was lower than estimated, then this group will be receiving more public resources that they are entitled to.

Given that the EU acts in a starkly-protectionist way by restricting trade with third countries, greater cooperation is in the RNMs interest. In fact, Brussels could reduce trade barriers in the context of a stronger association with Skopje even before the latter formally joins the Union.

There are steps the government can take to encourage citizens not to emigrate . The first and most crucial step would be to improve the education system. Overall, North Macedonia spends much less of its GDP than the average EU country on education. As a result, few people complete their secondary-level education, and therefore either end up in low-paying jobs or unemployed, andare forced to emigrate for work. Another step would be investment in the underfunded Research and Development (R&D) sector. In fact, North Macedonias budget allocates only 0.36% of GDP to R&D, compared to an EU average of 2.2% and neighbouring Bulgarias 0.77%. Research and development is essential to creating high-paying jobs, driving productivity, and boosting the economy through innovation and market competition.

The silver lining in North Macedonias economic strategy is infrastructure development. This especially true for roads and highways. Grueveskis administration was instrumental in the investment into road infrastructure, starting works for two new highways in 2014.

Still, roads can be rather useless if they do lead nowhere. Thus come trade infrastructures. In addition to new road, the building of new border checkpoints and crossing points with Greece and Bulgaria, will bolster the trade infrastructure that North Macedonia shares with the EU, thereby driving trade with a global economic powerhouse. These investments will also reduce the RNMs dependence on the Yugoslav-time north-south arteries, which currently present a barrier for the development of the functioning market economy that is a requirement for EU membership. To achieve this goal, the RNM needs to improve, road connections towards the west (with Albania) and the east (with Bulgaria, an important trading partner). Building better connections within the country and with non-Yugoslav neighbours will boost the countrys internal cohesion by making it easier to move from one part of the country to another proving supplemental infrastructures to foster international trade.

Figure 6 Highways represent a key segment of the RNMs investments.

A secondary and related benefit of improving connectedness with EU trade routes is reduced economic dependence on Russia. This should reduce Moscows potential diplomatic leverage in future disputes in the region. As a matter of fact, pulling out of Moscows orbit is almost a precondition to full membership in the EU which would bring in more funding opportunity and increase financial stability. Yet, Russias main asset is not trade tout court, but energy. In fact, the Balkans serve as a strategic crossroad for oil and gas coming from Moscow and Baku through Bucharest and Ankara. Thus, North Macedonia should also consider developing its energy infrastructure as a route to closer integration with the EU. In order to reduce the Western Balkans dependence on Russian fossil fuels, the region needs investments. For cash-strapped countries, like North Macedonia, the opportunity to make real progress in this field may come from green funds the EU has earmarked for energy projects in both current member states and candidate countries . In addition, Greece has established an LNG terminal on the Aegean to which links the RNM is planning to adjoin its grid. There are also talks of an electric-grid link to Albania, through which the RNM could import as much as needed and even export eventual surpluses.

Without radical reform, the extant corruption, bureaucracy and public-sector inefficiency will stymy growth in the coming years. Luckily, the EU might be the answer to Skopjes economic woes. The Union is expected to grant 3.3 billion to Western-Balkan countries to kickstart economic recovery following the pandemic. The package does however come with strings attached: the country will have to accelerate progress towards regulatory harmonisation with the EU. This is a notoriously difficult and resource-consuming task, which may hinder other reforms.

Furthermore, North Macedonia must confront pre-pandemic economic struggles. The government could revert to coalition infightings and therefore prolong the process of economic reform. For investors, a cautious approach is recommended, in preparation for positive economic developments.

Acknowledgments The Author thanks Charlotte Millington, parliamentary researcher at the UK House of Commons specialising in European politics and international security for her suggestions.

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Innovative ways to resume international travel - Modern Diplomacy

The Herald

Elliot Ziwira

Senior Reporter

Notwithstanding the deadly Covid-19 contagion which has played havoc on global economies, Zimbabweans will tomorrow virtually converge across the country to commemorate 41 years of Independence from colonial clutches of subjugation.

Riding on the crest of the Second Republics strides towards job creation, re-engagement, democracy, conflict resolution and agricultural productivity, among other deliverables aimed at fostering socio-economic development and peaceful co-existence to eradicate poverty, the nation will unite in celebration under the theme [emailprotected] Together, Growing our Economy for a Prosperous, Resilient and Inclusive Society.

As a first since Independence in 1980, 16 radio stations were resourced to broadcast the Presidents Speech on Independence Day (tomorrow) in the local language dominant in each community.

The Constitution of Zimbabwe recognises 16 official languages, inclusive of Sign Language.

Outlining the Independence Day programme at a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said 50 learners were selected from primary and secondary schools countrywide to attend the Childrens Party at State House today.

The number is inclusive of Child Parliamentarians with each province providing five children who will be accompanied to State House by two teachers.

Marking the transition from the Childrens Party to Independence Day will be a Virtual Independence Gala and a 30-minute midnight fireworks display at the Rainbow Towers in Harare.

This years celebrations are coming at a time the country is basking in the glory of positives; from a bumper harvest in maize (estimated at 2,5 million to 2,8 million tonnes) and small grains (360 000 tonnes) as well as projected improved tobacco deliveries, to a relatively stable foreign currency exchange rate which has seen prices stabilising across product lines and growth in mining and industry sub-sectors.

In line with the national Vision 2030, the country targets to hit a 100-tonne gold production by 2023, and achieve its mission to have a stable and sustainableUS$12 billion mining industry by the same year.

Efforts have also been made towards the curbing of stigmatisation in the artisanal and small-scale mining sector, a major contributor (at 65 percent) to the countrys total gold output.

This years celebrations also come as the Government debunked the colonial legacy of barrenness through the provision of water, a universal right, to communities previously considered unimportant by successive settler governments.

Since 2019, the Second Republic has committed resources towards the construction of the Gwayi-Shangani Dam (at 40 percent completion), which has a holding capacity of 650 million cubic metres of water, with Treasury allocating $4,5 billion for the project in the 2021 National Budget, to ascertain sustainable livelihoods in the Matabeleland region, rendered perennially arid.

With 365 000 hectares of total arable land in Zimbabwe suitable for irrigation, the need arises to invest in irrigation schemes.

Cognisant that a modernised agriculture sector is key in bringing national Vision 2030 to citizens doorsteps, in March, 2020, President Mnangagwa commissioned the US$15 million Nyakomba Irrigation Scheme in Nyanga funded under the Japanese Grant Aid.

Mindful of the need to move away from over-reliance on rain-fed farming so as to ascertain food self-sustenance, the President commissioned the multi-million dollar Marovanyati Dam in Buhera on November 10, 2020.

The dam, which is on Mwerihari River, is expected to provide water for domestic, agricultural and industrial use.

Inroads have also been made towards beneficiation of horticultural products through Government support to companies in that sector, and the resuscitation of the national herd.

In May 2020, the President launched the Presidential Livestock Scheme at Cleveland Range in Harare to support livestock farmers.

In June 2018, President Mnangagwa launched the Command Livestock programme at Gwanda Showground, to cater mainly for Matabeleland, where he handed over 1 660 heifers to 151 beneficiaries from Matabeleland Souths seven districts with $10 million being channelled towards the scheme to empower communities in Matabeleland North and South by boosting their herds.

As envisaged, the horticulture recovery and growth plan will not just boost exports, but also drive rural incomes adding US$2 000 to the average household income for participating small-scale farmers by 2030.

The recovery plan would require US$1 billion from the private sector and partners while the Presidential Horticulture Scheme, would benefit 1,8 million rural households at a cost of US$186 million.

The Government has also set aside $34 billion for the Second Phase of the Emergency Roads Rehabilitation Programme which was officially launched by the President in Mount Darwin, Mashonaland Central Province on Thursday. The project is expected to create more than 20 000 jobs across the countrys 10 provinces.

Defying the illegal economic sanctions imposed on the country by some Western countries, the Second Republic crafted people-oriented five-year blueprints premised on national frameworks meant to better citizens livelihoods.

On November 16, 2020, the President launched the National Development Strategy 1 (NDS1); an economic master plan focusing on inclusive development from 2021 and 2025.

Pivoted on yet another strategic participatory governance plan earmarked at curtailing resource-based conflict areas; Devolution, NDS1 endeavours to streamline gender, youth women and other vulnerable groups, thus creating equal opportunities for all in an economically stable environment.

NDS1 is a successor step to the Transitional Stabilisation Programme (TSP) in the drive to achieve a middle income economy by 2030 as enshrined in national Vision 2030.

The TSP, a fiscal and monetary reform, which has brought the much needed economic stability the country enjoys and leverages its growth trajectories on, was launched in October 2018, and ran till the end of 2020.

Under President Mnangagwa, the Second Republic has taken a bold step towards addressing conflict through the signing of the National Peace and Reconciliation Commission Act on January 5, 2018.

This paved the way for dialogue towards sustainable peace and peaceful co-existence.

The NPRC has been playing its role as mandated by the Constitution, to unite Zimbabwe for sustainable peace by developing mechanisms for resolving violent conflicts of the past and present and preventing their recurrence.

Under the leadership of President Mnangagwa, the Second Republic had made re-engagement one of its key priorities and had established a platform for dialogue with political parties, churches and civil society organisations, to put closure to past conflicts, particularly the emotive Gukurahundi issue.

The Second Republic advocates engagement and re-engagement as a way of pushing for outcomes where the common good is the ultimate winner.

In 2018, Zimbabwes premier investment promotion body, Zimbabwe Investment Authority (ZIA), revealed that it received 165 business applications worth US$15,8 billion between January and June of the same year.

Another indicator that Zimbabwe was a destination of choice to investors was resplendent at the 60th edition of the Zimbabwe International Trade Fair (ZITF) which ran under the theme Propagating Industrial Growth through Trade and Investment, in 2019 when space was sold out for the first time since inception in 1959 forcing organisers to pitch up tents.

The space available for sale rose from 47 612 square metres in 2016 to 57 732 square metres in 2019.

Indeed, the essence of unity cannot be overemphasized in the drive for a prosperous nation where the common good is the ultimate winner under President Mnangagwas vision of one-nation, one-people.

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Zim@41: Nation rides on crest of collective achievement - The Herald

SAN FRANCISCO, April 16, 2021 (GLOBE NEWSWIRE) -- The RealReal (Nasdaq: REAL)the worlds largest online marketplace for authenticated, resale luxury goodsand its partners in the company's recent capital raise are coming together to give back to the community. The RealReal is donating $100,000 to the Asian American Legal Defense and Education Fund (AALDEF), which, along with an additional $105,000 contributed by its partners, will help the organization respond to its spike in requests for legal assistance resulting from the rise in violence toward the Asian American and Pacific Islander (AAPI) community.

We have to watch for and fight against racism. That starts with understanding the issues faced by Asian Americans and it continues with the work organizations like ours are doing to advocate for equity and justice, said Margaret Fung, executive director of AALDEF. Providing legal counsel and support for hate crimes is intensive work. This donation from The RealReal and its partners will help us add needed resources to our team so we can serve more people and more communities.

AALDEF is a New York-based national organization founded in 1974 that protects and promotes the civil rights of Asian Americans. AALDEF has provided legal representation and counseling to victims of anti-Asian violence for more than 40 years and has advocated for stronger hate crimes laws and victim assistance programs.

Joining The RealReal in its donation to AALDEF are Bank of America, Stifel, King & Spalding, KeyBanc Capital Markets, Cowen, Credit Suisse, UBS and Raymond James.

We are committed to supporting and advocating for diversity in our communities. Weve been working closely with our Asians + Pacific Americans Employee Resource Group to support our internal AAPI community and are now working together to extend our efforts to help support communities nationwide, said Julie Wainwright, founder and CEO of The RealReal. We appreciate our partners coming together in this collective effort to expand the essential work AALDEF is doing to advocate for the Asian American community.

To learn more about the important work AALDEF is doing, please visit http://www.aaldef.org.

About Asian American Legal Defense and Education Fund (AALDEF)AALDEF combines litigation, advocacy, education and organizing, working with Asian American communities across the country to secure human rights for all. AALDEF focuses on critical issues affecting Asian Americans through programs dedicated to social justice, immigrant rights, educational equity, environmental justice and democracy.

About The RealReal, Inc.The RealReal is the worlds largest online marketplace for authenticated, resale luxury goods, with more than 20 million members. With a rigorous authentication process overseen by experts, The RealReal provides a safe and reliable platform for consumers to buy and sell their luxury items. We have hundreds of in-house gemologists, horologists and brand authenticators who inspect thousands of items each day. As a sustainable company, we give new life to pieces by thousands of brands across numerous categoriesincluding women's and men's fashion, fine jewelry and watches, art and homein support of the circular economy. We make selling effortless with free virtual appointments, in-home pickup, drop-off and direct shipping. We do all of the work for consignors, including authenticating, using AI and machine learning to determine optimal pricing, photographing and listing their items, as well as handling shipping and customer service. At our 15 retail locations, including our 10 shoppable stores, customers can sell, meet with our experts and receive free valuations.

AALDEF Press Contact:Jennifer WengAssistant Directorjweng@aaldef.org

The RealReal Press Contact:Erin SantyHead of Communicationspr@therealreal.com

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The RealReal and Partners Support Asian American Legal Defense and Education Fund Expansion - GlobeNewswire

Experts are warning already that the controversial Colombo Port City would be a magnet for attracting unsavoury financial activities and shady economic deals, which would adversely affect Government revenue and real national economy. Would the esteemed Central Bank Governor Prof. W.D. Lakshman guarantee that this would not happen? If he cannot, it would only show that he too has succumbed to pressures from his political masters

The Governor of the Central Bank, Prof. W.D. Lakshman, a trained economist, respected academic and a proud colleague of mine at Peradeniya, stated sometime back that President NGRs promise of prosperity and splendour would be delivered through an alternative and novel path of development, without giving much details about it. However, from his subsequent interviews to the media and public speeches one could gather some sign posts of that heavenly path.

The Governors or more appropriately his master NGRs development model is based on a bundle of thought bubbles, which in economic parlance, would translate into guaranteeing adequate liquidity through printing money to facilitate market-based economic activities and transactions, low interest rates to encourage domestic investment, ad hoc import substitution measures, affirmative action to encourage domestic production especially in agriculture, and above all, not to seek assistance from IMF.

That strategy might have been the need of the time when the world economy was hit by COVID-19 and countries were desperately taking steps at least to maintain the pre-pandemic status quo. However, while the world economy seems to be on a slow recovery path, maintaining the same strategy at home, without introducing structural changes to the economy to favour the most productive sectors, may worsen rather than improve peoples lives.

Already, the alternate path has driven down the value of domestic currency, increased prices of consumer essentials, created supply constraints for local manufacturers, reduced government revenue, and brought down the level of foreign reserves to a historic low.

In the meantime, with debt obligations looming large during the current year, Prime Minister MR and his State Minister for Money, Capital, Market and Public Enterprise Reforms Ajith Nivard Cabraal (ANC), have flown to Bangladesh and Oman respectively, in search of credit assistance, either through currency swaps or loans.

There is nothing novel about this except the two countries they have approached now are Muslim. Bangladesh, until recently, was a textbook case of Third World poverty and misery, but has performed admirably well by the optimal utilisation of its cheapest resource, population. While the other, Oman, which was historically rural and agrarian, because of petroleum bonanza has emerged from a fishing village into a capital surplus economic megalith.

There is a lot to learn from the experience of Bangladesh in the utilisation of human resource. One cannot expect Sri Lanka to perform well economically when its human resources are used sub-optimally because of ethno-national politics,

While MR and ANC are looking for friendly Muslim nations for loans and currency swaps, back at home, President NGR, who is also the Minister of Defence, and Retired Admiral Sarath Weerasekera, the Minister of Public Security, are busy making the entrepreneurial Muslim community a scapegoat for the 2019 Easter Sunday massacre, while allowing those who masterminded, financed, enabled and executed that horror go unpunished.

When an entire community is suspected of extremism and kept under constant surveillance, its energy and enthusiasm to function freely and contribute to economic production is jeopardised. This is true of the Tamil minority also, which is constantly harassed and its economic resources are being plucked away under false pretences just to safeguard the regimes Sinhala Buddhist vote bank.

This is a political strategy at the expense of economic development and to win back the collapsing popularity of the NGR and his parliamentary retinue. It is also a diversionary tactic to hide the failure of the alternate model, which is leading to nowhere.

The controversial Colombo Port City (CPC) with all its fiscal and financial privileges and freedom seems to be another arm of this development model, just as Hambantota Port was under MR Presidency. Yet, CPC is of a different genre. It would, with all its privileges, emerge as a state within a state and an attractive destination for illicit offshore finance, whose economic and financial benefits to the country are highly questionable.

Experts are warning already that it would be a magnet for attracting unsavoury financial activities and shady economic deals, which would adversely affect Government revenue and real national economy. Would the esteemed Central Bank Governor and Professor guarantee that this would not happen? If he cannot, it would only show that he too has succumbed to pressures from his political masters.

Finally, the alternate model totally ignores the economic impact of oppressing the two minorities. Unfortunately, recent developments in economics have made it an objective science by detaching from it the significance and role of the human factor in economic development. After all, an economy exists for the people and is created by the people.

Without people there will be no capital, no technology and not even economic and development models. Therefore, when a section of the population is oppressed, threatened and kept under security surveillance its contribution to economic production will be sub-optimal at best and minimal if not none at worst. This is what happening in Sri Lanka now.

Public sector investment and development of regions where the minorities are concentrated are trivial and the most prominent activity in the name of development undertaken by the government seems to be land grabbing for colonisation yet by more Sinhalese. This ethnic rebalancing is economically disruptive and socially oppressive. It cannot be part of any development model, let alone the alternate path.

However, there is also another danger arising from this situation. Because of systemic discrimination against and oppression of minorities, a significant sector of the countrys skilled, entrepreneurial, intellectual and hardworking human resource has emigrated, settled abroad and contributing magnificently to other countries development.

Sri Lankas loss is foreigners gain. As a result, like the Jewish community before Second World War, the expatriates have now grown into a force to be reckoned with. Originally, it was largely Tamils, but now there is also a small but steadily swelling Muslim contingent. There is also a Sinhalese diaspora, which is also becoming increasingly critical of the alternate model.

It is no secret that the recent setback that Sri Lanka suffered at the UNHCR Council in Geneva bears a Tamil seal. That seal is destined to receive international recognition if oppression of Tamils continues unabated at home.

As noted earlier, MR and his State Minister recently ran to Muslim countries seeking financial assistance. If Sri Lanka continues with its alternate model without reconciliation with minorities, and if markets in the West become less receptive as a result to Sri Lankan exports in the future, those of Muslim countries would become crucially important. However, if Muslim community at home also continues to suffer oppression, that may impact economic relations between Sri Lanka and Muslim countries negatively.

It is therefore imperative for those who berate about the alternate and novel model to pay more attention to some of the non-economic factors that impinge on the economy. As it is, the model is taking the country nowhere.

(The writer is attached to the School of Business and Governance, Murdoch University, Western Australia)

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An 'alternative' path to nowhere - ft.lk

JAKARTA, INDONESIA - Media OutReach - 12 April 2021 - Asia Pacific Rayon (APR), the largest integrated rayon fiber producer in Indonesia, today announced that it has secured a syndicated loan facility of Rp 4.5 trillion (US$300 million) with national and international affiliated banks. The funding will be used to support continued capital investment in the company's production facilities at Pangkalan Kerinci, Riau Province, Sumatra.

APR is vertically integrated through its supply chain, from renewable fiber plantations to high-value textile development. It commenced operations in 2019 and was formally inaugurated by President Jokowi Widodo in February 2020. APR plans to increase its production capacity over the coming year to capture the strong growth potential of viscose staple fiber (VSF), strengthening its market position in Indonesia and in export markets across the region. APR is a member of the RGE group of companies. Founded by Sukanto Tanoto, RGE manages a group of resource-based manufacturing companies with global operations.

The syndicated loan participating banks are PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk, PT Bank Pan Indonesia Tbk, PT Bank Pembangunan Daerah Jawa Barat, PT Bank Woori Saudara Indonesia 1906 Tbk and PT Bank KEB Hana Indonesia

The joint mandated lead arrangers and bookrunners for the syndicated loan are PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Central Asia Tbk, and PT BANK Pan Indonesia Tbk.

Basrie Kamba, Director, Asia Pacific Rayon, said: "This funding will be used to support continued investment in our operations in Kerinci. Rayon fiber, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world."

APR's planned expansion is aligned with the Indonesian Government's strategy to increase investment and boost employment to support the recovery of the country's economy and address the continued impact of the COVID-19 pandemic. Following the passing into law of the Omnibus Bill in October last year to streamline investment and stimulate job creation, President Widodo said last month that investment would be the key factor in achieving 5% economic growth in 2021.

"This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world. We are committed to supporting the Indonesian Government's efforts to improve the investment climate in export-oriented manufacturing industries, and its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses," said Basrie.

Hari Setiawan, Executive Vice President of PT Bank Rakyat Indonesia (Persero) Tbk said : "As Representative of JMLAB and all lenders, I hope this collaboration will be useful to support the growth and development of PT Asia Pacific Rayon in increasing production and operations and also supporting the recovery of Indonesia's export growth."

"Support from BCA and other Banks reflect our confidence in APR, and as our contribution to promote a sustainable and environment friendly industry. We hope this cooperation will tighten our relationship as well," said Susiana Santoso, Executive Vice President of PT Bank Central Asia Tbk.

Asia Pacific Rayon is the first fully integrated viscose rayon producer in Asia. Located in Pangkalan Kerinci, Riau, the company uses the latest production technology to produce high-quality rayon to meet textile needs. APR is committed to becoming a leading viscose rayon producer with the principles of sustainability, transparency and operational efficiency, serves the interests of the community and the country, and provides value to customers. APR is part of the RGE (Royal Golden Eagle) group of resource-based manufacturing companies. Sustainability is fundamental to APR. The APR Sustainability Policy, updated in September 2020, include additional commitments on pulp sourcing and clean manufacturing.

RGE Pte Ltd manages a group of resource-based manufacturing companies with global operations. Our work ranges from the upstream, comprising sustainable resource development and harvesting, to downstream, where our companies create diverse value-added products for the global market. Our commitment to sustainable development underpins our operations, as we strive towards what is good for the community, good for the country, good for climate, good for customer, and good for company. RGE was founded in 1973. The assets held by RGE companies today exceed US$20 billion. With more than 60,000 employees, we have operations in Indonesia, China, Brazil, Spain and Canada and continue to expand to engage newer markets and communities. http://www.rgei.com

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Asia Pacific Rayon Raises US$300m from National and International Affiliated Banks to Expand Production Capacity - Taiwan News

What practical steps is the industry taking and what solutions are on the horizon to tackle the monumental challenge of carbon reduction? Victoria Hattersley spoke to experts from the Carbon Trust, Amcor, Mondi, Smurfit Kappa and Tetra Pak to get their views on some of the big questions around this issue.

Reducing carbon emissions to avert climate catastrophe is the true existential challenge of our times far more than Covid or anything else we can conceivably think of. And while the pandemic might have given us some temporary breathing space over the past year as emissions, according to the Global Carbon Budget Report, took a 7% drop, its almost certain we will be back on the same destructive path as soon as life returns to what we might blithely consider normal.

We know all this, and at Packaging Europe we report daily on the steps various members of the value chain are taking to grapple with this task. Some are making real progress, while others readily use terms like circular economy and decarbonization but have yet to make the kind of substantive changes the situation requires.

None of the people I have spoken to for this piece claim to have all the answers but were happy to share their thoughts on what concrete action might look like. The first question they addressed and its one we will all by now be familiar with was:

1. Do we need to put the focus on carbon over plastic waste?

The plastics backlash is perhaps an overused term but its certainly had major reverberations across the industry in recent years. So much so that some would say the focus on the undeniably dire issue of plastic waste has drawn attention away from the wider overall climate crisis. Is this a fair representation?

In part, it may come down to a simple case of what the eye can see. Obviously the plastic waste is more visible so I think that, even in the perception of government and media sometimes it is put in the same bucket as climate change when really they are very different, says Gerald Rebitzer, Director of Sustainability at Amcor Flexibles. Both are very important so Im not saying we should think of it as one vs. the other, but my personal view is that the climate crisis is the important issue for humanity.

But for others, they are really two parts of the same thing and cannot be treated separately. Tackling plastic waste and addressing the climate crisis are both important and often go hand-in-hand, says Laura Timlin, Director, Business Services at the Carbon Trust. We know that we need to move away from using fossil fuels in order to help global economies to fully decarbonize should virgin plastic derived from fossil fuels continue to be used at the current rate, it will comprise 17% of global emissions by 2050. So, reducing reliance on virgin plastic will be crucial to tackling the climate crisis at the same time as addressing the damaging environmental impact of plastic waste.

Most likely, the solution lies somewhere in-between. We cannot put all our energies into reducing plastic waste when the plastics industry is not even the biggest producer of carbon emissions: but more efficient use of the plastics we do create and perhaps a greater focus on non-fossil-based materials could make a real difference. Which leads us on to our next question.

2. What decarbonization routes should the industry focus on?

The above is all well and good: but if this justified urgency is not backed up by concrete action on a systemic scale then well all be left floundering. The people I spoke to have some areas of agreement and some differing views on where the industry should be directing its efforts. What does seem to a source of agreement is that all stakeholders in the packaging sector need to broaden their perspective.

The increased use of recycled content for plastic production is one strand: the world as a whole needs to come to treat plastic as the precious commodity it is. Only then can it be part of the solution, rather than contributing to the problem.

Utilizing recycled content is very important in a low carbon economy, says Laura Timlin. Carbon emissions continue to come from plastic packaging after its disposal with the amount of emissions dependent on the manner of its disposal. Most plastic packaging has low value and is not recycled but rather incinerated, which not only generates emissions but also wastes resources. Part of this comes down to an increased focus on design for recyclability and resource efficiency, using materials that are part of mainstream recycled pathways.

While increased recycling and improving the entire infrastructure for this could certainly reduce the overall carbon footprint of fossil-based plastics, we should also consider the role played by the feedstocks themselves.

Some put it more emphatically: While circular economy policy measures on recycling are essential, we need an environmental approach that includes the decarbonisation of materials and manufacturing, to reduce the impact on our planet.One approach is plant-based, says Gilles Tisserand, Head of Sustainability Transformation, Tetra Pak Europe & Central Asia. Plant-based materials are renewable and better for the environment. Renewable resources can be replenished over time and enable a move away from fossil fuel-based products, with a lower carbon footprint and reduced environmental impact. Bioplastics developed from sugarcane are an exciting area and we are continuing to innovate with sugarcane-derived polymers. Already, weve launched our Tetra Rex Plant-based carton, the worlds first and only fully renewable beverage carton.

And what about reusables? In recent years a considerable amount of momentum seemed to be building around reusable packaging models but this has slowed a little in part, but not wholly, because of the safety concerns around Covid-19. So how can the industry get reuse back on track, enabling it to play its part in the carbon solution?

A lot more needs to be done to push this agenda, says Laura Timlin. A re-use model provides a compelling way to reduce climate impacts by avoiding emissions associated with single-use packaging. Many brands will need to completely rethink their business model. Not only does a re-use model need to be easy for a consumer but it also needs to help a brand maintain its market value, credibility and competitiveness.

However, Gerald Rebitzer sounds a note of caution here, reiterating the importance of LCA: Carbon emissions for reuse models need to be considered so one should only make that change if it leads to lower carbon emissions; for example, if reusable bottles are being shipped a long way that somewhat negates the environmental benefits.

The above are by no means the only routes to carbon reduction, but its a fair overview of the directions in which the sustainability conversation is moving.

3. Should we be materials-agnostic?

Another big question with no simple answer: what of the packaging materials themselves and their respective carbon footprints? Do we favour plastics? Paper? Infinitely recyclable materials such as metal and glass? The crux of this issue is that its very hard to quantify the individual carbon impact of any material. By what metric do we measure? The initial production of the material? Distance travelled? Weight? End of life? So many questions and there are many, many more.

With plastic, for example, its protective properties are undeniable and carbon impact of production is comparatively low, so the issue here is that we are still, globally, falling short when it comes to the appropriate collection, sorting and recycling infrastructure.

According to Gerald Rebitzer, while Amcor uses plastics, aluminium and paper, from a carbon perspective, for most applications plastics and specifically flexibles are kind of unbeatable. But we need to solve the recyclability question otherwise there will be policies that ban certain plastics and then you go back to metal cans or glass which have a very bad LCA performance compared to plastics even if they are recycled.

What about the perspective from the paper industry? How does it counter the argument that paper is far more energy-intensive than plastic to produce and that, furthermore, that the paper industry is currently under less pressure from governments to tackle its emissions?

It is not a simple matter of evaluating a carbon footprint in isolation, says Susan Brunner, Senior Sustainability Positioning Manager, Mondi Group. We also have to consider the energy fuel mix (for paper its mainly biomass-based), in particular whether the energy is derived from renewable materials. According to Cepi, the paper industry has lowered its carbon emissions by 27% since 2005 and is the largest industrial generator and user of renewable energy in Europe.

And other paper producers believe perhaps unsurprisingly that we should be moving away from plastics altogether. Plastic is a fossil-based product and for the moment not easily recycled, says Steven Stoffer, Group VP of Sustainable Development at Smurfit Kappa. Even when it is recycled, it will most likely eventually be used as fossil-based fuel for heat generation. From that perspective, it has a delayed use as fossil fuel. Paper will never have that issue.

Or maybe, in some cases, there should be no packaging at all? The important thing with packaging is to avoid knee-jerk reactions by substituting with alternate materials that do not perform as well, says Laura Timlin. The lowest emission scenario is to eliminate all packaging where it is not required, i.e. online grocery retailers now offer a no bags option which enables the customer to unpack straight from the delivery crate.

How do we unpick all these varying and sometimes quite opposite opinions? Is an agnostic approach the best one: in short, yes, if you consider it to be a case of choosing the right material for each application (oft-used phrases such as plastics where possible, paper where necessary come to mind here). There is no sense in demonizing any one material: it comes down to that delicate balancing act of accounting for all the many metrics that make up the life cycle of a package.

4. What are the most promising emerging solutions or technologies?

The above has been focused mainly on todays market realities but technology is evolving all the time. Are there any game-changing solutions emerging with the potential to make a real difference to the packaging sectors carbon footprint?

For Gerald Rebitzer, there is not one single tech, or even a handful of technologies it comes down to systemic change increasing use of renewable energy everywhere, increasing recyclability: if we really get to the point where a large proportion of plastics are recycled and stay in the loop then the losses are filled with polymers from renewable sources. Then you have the most perfect system available as you keep the polymers in the loop wherever possible and you can plug the gaps with renewables. That would actually disconnect the plastics from the fossil fuel usage and related impact.

Chemical recycling, of course, is always hovering tantalizingly on the horizon, and most would agree there are huge opportunities for circularity here if or when the technology becomes widely available and economically viable. But there is still work to be done around the economics of this, and also the energy consumption required for the process.

As an interesting side note, Gerald Rebitzer gives us an illustration of how focusing on emissions reduction in one industry can have a trickle-down effect on sustainable development in other sectors.

At the moment a lot of the raw materials for polymers are a by-product of fuel production for the automotive sector: naphtha, diesel etc. If you look at how much oil and gas goes into fuels vs. how much goes into plastics, about 90% goes into fuels. At the moment chemical recycling is competing with a by-product that is generated from fuel production. Once there is more regulatory demand for electric cars and fuel production is reduced then chemical recycling should become a lot more competitive because there would be less of these by-products available to use. It could change the dynamics of the petrochemical chain.

As to paper, Smurfit Kappas Steven Stoffer tells us how new fuels, such as hydrogen, may help to make the industry more energy efficient. Also, there are lots of ongoing studies researching how to make paper without the use of water. If that is possible, then the energy requirements from paper reduction will be greatly reduced.

But this problem will not be solved by technology alone, cautions Laura Timlin. While new technologies can help, the real difference will be behaviour change from both organizations and consumers.

How to move forward?

To be blunt, is this behaviour change happening quickly enough?

There will hopefully always be areas of healthy disagreement, but more and more what we hear is voices calling for broad areas of consensus. It is not a case of pitting one material or one strategy against another. With carbon, there is no perfect solution, only the best that can be achieved. Of course, as individuals we can all play our part, but we are beyond relying on the example of individuals alone: the major change has to be systemic.

Some companies are doing a lot in this space but this level of effort needs to be universally applied in order to see significant change, says Laura Timlin. It is therefore really important for packaging companies to demonstrate the action they are taking by committing to, and then setting science-based targets backed by a plan on how they are transitioning to meet the requirements of a 1.5-degree pathway aligned with the Paris Agreement.

Indeed. And there has been some real progress made within the industry, while initiatives such as the European Green Deal aim to provide incentives for change, transforming the 27-country bloc into a low-carbon economy without reducing economic growth. But this is no time for hearty back-slapping and champagne all round. There needs to be greater transparency and scrutiny around decarbonization: those in the industry that are doing their part will welcome that; others will need to rethink.

Originally posted here:

The carbon crisis: Four big questions for the packaging industry - Packaging Europe

Friends of Netarts Bay Watershed, Estuary, Beach, and Sea (WEBS), in partnership with Tillamook Bay Watershed Council and Explore Nature Series, invite you to take a virtual walk through the history of Oregons forests and explore the relationship between these ecosystems and wildfires. As people have become a more prominent presence on the landscape, our personal relationship with wildfire has become strained and emotionally charged. The presentation will discuss both the connection between forests and fire and the impacts on people.

Last September brought fire very close to home for Tillamook. It generated a lot of questions and conversation, shared Chrissy Smith, Director of Friends of Netarts Bay WEBS. We wanted to offer an opportunity to learn about wildfire in our forests.

The presentation will discuss how our forests are adapted to deal with fire, how forested areas recover over time, and what you can do on your property to limit risk. Presenter, Alayna Lawson of Unbridled Conservation Outreach, has first-hand experience with fire and research around forest recovery after wildfires. The presentation will explore the Riverside Fire (burned in 2020), the Eagle Creek Fire (burned in 2017), recent fires in Tillamook and along the Oregon Coast.

This event is part of the Explore Nature series of hikes, walks, paddles and outdoor adventures. Hosted by a consortium of volunteer, community and non-profit organizations, these meaningful nature-based experiences highlight the unique beauty of Tillamook County and the work being done to preserve the areas natural resources and natural resource-based economy. Find out more about Friends of Netarts Bay WEBS by following our Facebook and Instagram pages (@netartsbaywebs) and stay connected with the Explore Nature Partnership at http://www.explorenaturetillamookcoast.com or on social media (@explorenature_tillamookcoast).

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Friends of Netarts Bay hosts virtual walk through Oregon's forests - Tillamook Headlight-Herald

Better governance could unlock economic opportunity for Africa's ocean industries Operations at the port of Lagos, Nigeria (scenar308 / Bernd S / CC BY 2.0)

By Mokrane Sabri 04-08-2021 03:55:00

Africa is a complex continent. She is an eclectic mix of authoritarian regimes, where leaders have been in power for many decades; countries that are attempting to make their way towards democracy, even if progress is incremental and slow; and others that have had a stronger semblance of democracy for many years, though (in honesty)are still trying to find their feet.

As beautiful as Africa is, she is a continent scarred by war, tainted by corruption, and in many instances lacking in transparency. For years there have been numerous attempts to bring the continent together to create a continent-wide common market, but the attempts have yet to gain serious traction. For a cohesive effort, you need common understanding and the ability to find common ground, so that you can make decisions for the greater good of the continent rather than just your own country.

With such diverse politics and governance, however, thats not easy to achieve. It is one of the reasons there are so many regional economic communities, and why so many countries belong to more than one. There are eight recognized by the African Union and seven more that it doesen't recognize, and overlaps occur in each. So far, the most successful attempt at uniting sub-Saharan Africa has been the African Continental Free Trade Area (AfCFTA), which started trading on January 1, 2021.

Focusing on growth

AfCFTA presents enormous opportunities for trade within the continent. Intra-African trade has increased its share to 15.4 percentover recent years, but Asia and Europe are still the continents main trade partners.

Greater focus needs to be placed on raising Africas share of world production and world trade, which are both currently less than three percent. Unfortunately, many African countries have low performance in trade facilitation indicators, scoring low in e-commerce; liner shipping connectivity; and doing-business indicators. Lack of transparency and perceptions of corruption are also hindrances to intra, and inter-continental trade, and sub-Saharan Africa is currently the lowest performing region on Transparency Internationals latest annual report.

Alternative approaches to revenue growth

In order to achieve her full capacity, Africa needs to look at alternative approaches to increasing revenue. In 2008, the Seychelles president, James Michel, shifted his countrys strategic focus to what has become known as the Blue Economy. The World Bank defines the Blue Economy as the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs, while preserving the health of ocean ecosystem. While its a concept that has been embraced globally, on the continent where the idea was born, were falling far behind.

The African Union (AU) has designated the years 2015-2025 as The Decade of African Seas and Oceans, and in February 2020, it launched the African Blue Economy Strategy. The Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), and the Indian Ocean Commission (IOC) also recognize the potential of the Blue economy as a lever of socio-economic development in their strategic documents.

According to the United Nations policy handbook on Africas Blue Economy, maritime zones under Africas jurisdiction total about 13 million square kilometers, including territorial seas and Exclusive Economic Zones (EEZ), and approximately 6.5 million square kilometers for the continental shelf. The continent therefore has a vast ocean resource base that can contribute to sustainable development.

In order to realize that sustainable development however, countries across the continent will need to collaborate across borders and sectors on a scale they have not previously achieved. The largest sectors of the current African aquatic and ocean-based economy are fisheries, aquaculture, tourism, transport, ports, coastal mining and energy.

Potential Major Hubs in Africa

As PWC has highlighted, African ports represent gateways for the continents commodity exports, but as countries grow and develop, ports are also essential for sustaining and improving more robust and diverse economic growth, through the import and export of manufactured goods and other products.

PwCs recent analysis showed that based on the degree of port centrality (shipping liner connectivity), the amount of trade passing through a port, and the size of the hinterland, Durban (South Africa), Abidjan (Cote dIvoire) and Mombasa (Kenya) are most likely to emerge as the major hubs in Southern Africa, West Africa and East Africa, respectively.

The report stated that the closest rivals to these ports are Lagos-Apapa (Nigeria) and Tema (Ghana) as alternatives to Abidjan, and Djibouti and to a lesser extent Dar es Salaam to Mombasa. Due to their better operational performance, both Lagos-Apapa and Tema pose significant challenges to Abidjans emergence as a hub, which might eventually be decided on factors such as on political stability, port performance and quality of inland connections.

Improving port performance could increase GDP by two percent. An efficient port reduces delays to shippers, reduces overall logistics costs and improves reliability of goods in transit. Yet across Africa, investment in port infrastructure and expansion has slowed.

Stability, security, and transparency are drivers of foreign investment

African governments have the ability to significantly impact the investment environment, and investors will look to the way they are planning, regulating, owning and operating their ports.

They will also take the countrys stability, security and perceived corruption levels into account. Experienced investors will certainly consider how individual governments have handled foreign inbound investment previously, and if there is not a favourable investment environment, it is not likely that inbound investment targets will be met.

This is particularly relevant at a time when the continent is seeing a high rate of election-related violence and accusations of corruption abound. There are thirteen national elections due to take place in 2021, a third of which take place in the Horn of Africa.

Djibouti, Benin and Chad all have their presidential elections in April 2021. Djiboutis port is located on Africas East coast, nestled on the Horn of Africa between Berbera and Massawa. As a potential rival to Mobassa for an African hub, Djiboutis ports have undergone some expansion in the past.

The country has already benefitted from investment from China, using the capital for port and infrastructural investments. In fact, the state-owned China Merchant Group acquired a 23.5 percent stake in Djibouti port in 2008, and is also trying to get a 40 percent stake (https://pwc.to/3wMXd1Z) in Ethiopian Shipping and Logistics Enterprise (ESLSE). In order to continue patrolling the waters of East Africa and to protect its investment in Djibouti, China inaugurated its first overseas military base in 2017 alongside the bases of the United States, France, Italy, Spain, Germany, and Japan.

The World Banks Economic Transformation in Djibouti reporthighlights key measures for improving its appeal to foreign investors, including: lowering the cost of production factors (electricity, ICT and labor costs) to raise competitiveness; further easing access to finance; leveling the playing field to enhance competition; and reforming the tax system to make it more equitable across firms.

Enticing future foreign investment may prove difficult, as investors will look to the past two years that DP World have spent in court attempting to secure a return on their investment in the Doraleh Container Terminal, which the Djiboutian government seized in 2018. The action was found to be illegal by the London Court of International Arbitration and the High Court of England and Wales. However, the Djiboutian government has failed to abide by the many court rulings and restore DP Worlds full rights under the concession agreement of 2006.

After Djibouti's election, Ismail Omar Guelleh must address the magnitude of the governments debt to the Chinese - along with the countrys reputation in the international investment community - if the people of Djibouti are to reap the benefits from its strategic location along global trading corridors.

In Benin, the Cotonou port was developed to assist landlocked countries like Mali, Niger and Burkino Faso. Rehabilitation of the port did help; however, it is still struggling to compete against nearby ports such as Tema, Lom and Lagos, which have been expanded and upgraded more recently. Both Chad and Burkina Faso have their own warehouses to store goods at Contonou port.

Considering the future

It will be interesting to see the outcomes of all of 2021s elections in Sub-Saharan Africa. Will the leadership remain the same? If it changes, will it make a tangible difference in uplifting the countries that do bring in a new order? Will we see changes in strategic economic approaches this year, and will concrete steps be taken to grow each countrys Blue Economy? Will the launch of AfCFTA be the start of growth across the continent?

Opportunities do abound in Africa, but as yet they are not nearly fully realized. What is needed is investment in improved governance to create a pipeline of investable opportunities that benefit both local and national economies, backed up by an enabling environment for responsible private sector investment throughout the value chain. The World Bank estimates the size of Europe's well-developed Blue Economy at 5.4 million jobs and nearly $600 billion in annual economic activity; just imagine what increased focus on Africas Blue Economy could do for the continent.

Mokrane Sabri is a senior trade manager and an expert on shipping in North Africa and the Middle East.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

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Africa's Growth and the Potential of the Blue Economy - The Maritime Executive

PM Imran Khan has called on the D-8 Organization for Economic Cooperation comprising eight of the most populous Muslim-majority countries to expand trade and mobilise their resources to tackle the challenges presented by the Covid-19 pandemic. Addressing a D8 summit virtually the other day, the PM noted that the group accounted for over a billion people and $4 trillion in GDP, but while the prerequisites for growth were there, work still needed to be done. He suggested investing time and money in resource mobilisation, youth engagement, expanding trade between member nations, and developing knowledge-based economies. These proposals are largely interlinked.

The PM also called on members to back his last years proposal for the world to provide debt relief and address illicit financial flows, both of which would bring billions back to the developing world, which could then mobilise the funds for development. That money would also motivate youth engagement in areas such as cultural, educational, scientific and business exchanges. This, in turn, is a stepping stone to developing a knowledge economy, the groundwork for which has already been necessitated everywhere due to the impact Covid-19 has had on how we work.

Several countries which had no significant online work or digital transaction infrastructure have had to quickly develop these. Increased digitisation could also help expand trade by making information on local markets more readily available and cross-border transactions less complicated. PM Imran also called for improving food security and healthcare to improve citizens' lives. These tie into the pandemic's socioeconomic impact, which has caused widening income and health inequalities to widen in countries rich and poor alike.

The impact, of course, has been most visible in poorer countries with weaker welfare systems. But in this comes an opportunity to restructure economies and quickly train and transition workers towards tomorrow's professions and careers. The transition can be done more smoothly if countries like the D8 bloc work together instead of in a vacuum. This would protect labour from exploitation during the transition, while also optimising improvements in communications infrastructure, which helps make the development itself sustainable.

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D-8 summit - The Express Tribune

By Lalit K Jha

Washington, Apr 10 (PTI) Asserting that the effects of the COVID-19 pandemic will be felt for years, the International Monetary Fund and the World Bank have been urged by a joint ministerial committee of the two global financial bodies to ensure timely delivery of safe and effective vaccines across all countries.

"Timely delivery of safe and effective vaccines across all countries is critical to ending the pandemic, especially as new variants emerge. Developing countries need to strengthen their readiness for vaccination campaigns and develop coordinated strategies to reach vulnerable populations," a joint ministerial committee of the World Bank and the IMF said in a communique.

The Development Committee Communique at the conclusion of the Spring Meetings of the IMF and the World Bank said the COVID-19 pandemic has caused an unprecedented public health, economic, and social crisis, threatening the lives and livelihoods of millions.

The economic shock is increasing poverty, worsening inequalities, and reversing development gains. As the global economy begins a gradual recovery, uncertainty surrounds near- and medium-term prospects, it said.

"We call for sustained, differentiated, and targeted financial and technical support for an adequate policy response, strong coordination across bilateral and multilateral organisations, and further support to the private sector. We urge the World Bank Group (WBG) and the International Monetary Fund (IMF), in line with their respective mandates, to work closely together and with other partners to contain the impacts of the pandemic," the communique said.

The communique called for redoubling the efforts to support manufacturing capacity for vaccines and the pandemic-related medical supplies in developing countries.

"The pandemic has triggered far-reaching consequences, and we must strengthen global preparedness for future pandemics, and at the same time make progress in building robust health systems with universal coverage," it said.

As poorer countries face the crisis with increased resource constraints, limited fiscal space, and rising public debt levels, more of them, including small states, are vulnerable to financial stress, the communique note.

The rapid initial response under the Debt Service Suspension Initiative (DSSI) has provided much-needed liquidity for IDA countries, it said.

"The effects of the COVID-19 crisis will be felt for years. Mobility restrictions and lockdowns have triggered job losses, especially for women, youth, and vulnerable groups, and can undermine social inclusion," the communique said.

School closures have caused unprecedented disruption to education, especially for girls, damaging human capital, with long-term economic implications. Inflation and depleted incomes have raised household indebtedness and food insecurity, it said, urging the IMF and the World Bank to scale-up its work to address rising levels of food insecurity and to support countries in achieving Sustainable Development Goal 2 and nutrition for all.

Commending the WBG''s scale-up of climate finance over the past two years, its continuing role as the largest multilateral source of climate investments in developing countries, its emphasis on biodiversity, and its technical and financial support for adaptation, mitigation, and resilience, the communique also welcomed the WBG and IMF''s work to assess the impact of climate change on macroeconomic and financial stability.

Observing that a vibrant private sector will be essential for client countries to recover, create jobs, and embrace economic transformation, the communique urged the World Bank Group to continue its work to help crowd-in private capital and finance, and to support the private sector.

Earlier in his address to the Development Committee, World Bank Group President David Malpass said the world is developing a better line of sight forward, and our collective efforts to poverty, climate change, and inequality will be the defining choices of our age.

"It''s time to move urgently toward opportunities and solutions that achieve sustainable and broad-based economic growth without harming climate, degrading the environment, or leaving hundreds of millions of families in poverty," he said.

Malpass strongly welcomed the G20''s decision to extend the DSSI to end-2021.

"We are working closely with the IMF to support the implementation of the G20 Common Framework, as detailed in this joint paper. I welcome the clear statement in the G20''s communique that the need for debt treatment, and the restructuring envelope that is required, will be based on an IMF/World Bank Debt Sustainability Analysis as an input to the creditor committee deliberations," he said.

To recover from COVID-19, we will need integrated, long-run strategies that emphasise green, resilient, and inclusive development (GRID), Malpass said.

"This must be aligned with the need for policies that help countries increase literacy, reduce stunting and malnutrition, ensure clean water and energy access, and provide better healthcare," he said.

"We must help countries improve their readiness for future pandemics. We need to help them accelerate the development and adoption of digital technologies. We need to work to improve and expand local supply chains and strengthen biodiversity and ecosystems," Malpass said. PTI LKJ KJ SCY

Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI

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IMF, World Bank urged to ensure timely delivery of safe & effective COVID vaccines across countries - Outlook India