Global growth to slow through 2023, for 25th year in a row, Greenland ice sheet shrinks and green hydrogen may pave the way towards energy transformation. Here is what you missed from last week’s headlines in the international development sector:
Global growth to slow through 2023, adding to risk of ‘Hard Landing’ in developing economies
Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from COVID-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies, according to the World Bank’s latest Global Economic Prospects report. Global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world.
The rapid spread of the Omicron variant indicates that the pandemic will likely continue to disrupt economic activity in the near term. In addition, a notable deceleration in major economies—including the United States and China—will weigh on external demand in emerging and developing economies. At a time when governments in many developing economies lack the policy space to support activity if needed, new COVID-19 outbreaks, persistent supply-chain bottlenecks, inflationary pressures, and elevated financial vulnerabilities in large swaths of the world could increase the risk of a hard landing.
“The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory. Rising inequality and security challenges are particularly harmful to develop countries,” said World Bank Group President David Malpass.“Putting more countries on a favorable growth path requires concerted international action and a comprehensive set of national policy responses.”
The analysis also shows that commodity-price booms since the 1970s have tended to be larger than busts, creating significant opportunities for stronger and more sustainable growth in commodity-exporting countries—if they employ disciplined policies during booms to take advantage of windfalls.
Climate change: For 25th year in a row, Greenland ice sheet shrinks
2021 marked the 25th year in a row in which the key Greenland ice sheet lost more mass during the melting season, than it gained during the winter, according to a new UN-endorsed report issued.
The data from the Danish Arctic monitoring service Polar Portal – which forms part of the UN weather agency WMO’s annual State of the Climate report – shows that early summer was cold and wet, with unusually heavy and late snowfall in June, which delayed the onset of the melting season.
After that, however, a heatwave at the end of July led to a considerable loss of ice. In terms of “total mass balance” (the sum of surface melting and loss of ice chunks from icebergs, in addition to the melting of glacier “tongues” in contact with seawater), the ice sheet lost around 166 billion tonnes during the 12-month period ending in August 2021.
According to the report, 2021 was notable for several reasons. It was the year in which precipitation at Summit Station, which is located at the top of the ice sheet at an altitude of 3,200 meters above sea level, was registered in the form of rain. Winter snowfall was also close to the average for the period between 1981 and 2010, which was good news because a combination of low winter snowfall and a warm summer can result in very large losses of ice, as was the case in 2019.
Green hydrogen may pave the way towards energy transformation
Hydrogen has many applications in the energy industry and it is widely used by various sectors. However, its production generates harmful carbon dioxide emissions which need to be reduced to prevent further global warming. Green hydrogen may be a cutting-edge solution that will significantly support energy transition.
According to the International Energy Agency (IEA), hydrogen consumption has been steadily growing since 1975. However, the problem is that its production relies almost entirely on fossil fuels whose use humanity must phase out.
At the moment, about 75% of the entire global production of hydrogen (70 million tons a year) is based on natural gas. The industry uses 6% of the total annual natural gas supply and 2% of the coal supply with only 0.1% of hydrogen being made from renewables, i.e., based on water electrolysis which results in green hydrogen that is not associated with greenhouse gases emissions.
DevelopmentAid Editorials
Why are poor countries poor? | Experts’ Opinions
They say that if all the money in the world was shared between each individual thus making everyone equal, in time, those who were previously rich would become rich again while those who were poor would return to their original situation too. Is it the same case for poor countries as well? Researchers say that poor states are poor because their economies fail to grow fast enough. Among other causes are low levels of education, poor water quality and weak health systems. The economies of the least developed states shrink too often and only a few have the capacity to reduce the incidences of this, economists say. We discussed the topic with some experts. Check their answers below.
Hero Stories | Malachy Mitchell: “The timing has never been better for us to work in the food security and agriculture sector”
The pandemic has resulted in an increased focus on food security and the basic human needs of the less well-off in society. With a 30-year-long experience of working in Europe, the Middle East, and global food and agriculture, Malachy Mitchell has reiterated his commitment to deliver significant impact and added value to his clients and stakeholders. Invited to become the champion in the latest edition of the “Hero Stories” interviews, the co-founder and Managing Director of Farrelly & Mitchell, an international food and agribusiness management consultancy firm with offices in Europe, the Middle East, and Africa, explained how important it is to rethink supply chains, explore the potential of Africa and establish ties with the Middle East. Discover this expert’s projections regarding the food crisis in our “Hero Stories” interview.
Unemployment rate statistics in 2021: first signs of recovery after crisis
Unemployment refers to the share of the working-age population that is currently without a job. The COVID-19 crisis had significantly affected the global labor market pushing unemployment rates to alarming levels. In the meantime, many advanced economies such as the UK, Canada, Australia, and the United States are facing large-scale labor shortages. This article explains the concept of unemployment and presents certain statistics and facts related to it.
Here’s what else has happened
USAID: The U.S. Agency for International Development (USAID) is providing $100,000 in immediate assistance to support people affected by severe flooding in the Bahia State of Brazil, which has impacted nearly 800,000 people, including displacing more than 73,000 people from their homes.
WFP: The United Nations World Food Programme (WFP) is serving hot meals to 2,200 refugees affected by a large fire that damaged or destroyed at least 500 shelters in Camp 16 of the Kutupalong refugee settlement.
UNHCR: UNHCR, the UN Refugee Agency, is calling on the French Presidency of the Council of the European Union (EU), and the Czech Republic which will assume the Presidency in July, to prioritize the better protection of refugees in Europe and globally.
IRC: The IRC warns of a growing humanitarian catastrophe in Afghanistan as economic freefall pushes 9 million people to the brink of famine and the United Nations issues an urgent financial appeal for $5 billion to prevent a humanitarian catastrophe in 2022.
Reports
EIB Investment Report 2022: Investment in the European Union is recovering while social and geographical inequalities are growing
The COVID-19 shock demonstrated the power of policy. The quick rebound of investment in Europe (excluding in Ireland, where real investment is lagging behind) shows that public support was crucial in softening the impact of the economic shock on firms and households. However, there are signs that the COVID-19 crisis has exacerbated existing asymmetries and inequalities. The report, the most comprehensive, regular examination of investment in the EU, looks back at the impact of the pandemic on individuals, firms, and countries within the European Union.
Vietnam’s economic growth is expected to accelerate to 5.5% in 2022 and greening its trade would offer new opportunities
Vietnam’s economic recovery is likely to accelerate in 2022 as GDP growth is expected to rise to 5.5% from 2.6% in the year just ended, the World Bank’s economic update for Vietnam Taking Stock says. Entitled “NO TIME TO WASTE: The Challenges and Opportunities of Cleaner Trade for Vietnam,” this edition of Taking Stock argues that greening the trade sector should be a priority. Trade, while an important driver of Vietnam’s remarkable economic growth over the past two decades, is carbon-intensive —accounting for one-third of the country’s total greenhouse gas emissions — and polluting.
The future for autocrats is darker than it seems
Autocratic leaders faced significant backlash in 2021, but democracy will flourish in the contest with autocracy only if democratic leaders do a better job of addressing global problems, Kenneth Roth, executive director at Human Rights Watch, said in releasing the Human Rights Watch World Report 2022.
Events
Fourth intersessional meeting on human rights and the 2030 Agenda | Virtual
📅 18 January 2022
Virtual
In June 2020, the Human Rights Council adopted resolution 43/19 on the promotion and protection of human rights and the implementation of the 2030 Agenda for Sustainable Development.
A Global Procurement Partnership for Sustainable Development: An International Stocktaking of Developments in Public Procurement | Virtual
📅 19 January 2022
Virtual
Sound public procurement can free up a trillion-dollar in savings annually that could be used to sustain green, resilient, and inclusive economies. Governments spend an estimated $13 trillion on public contracts for goods, services, and public works.
42nd session of the European Commission on Agriculture | Virtual
📅 19- 21 January 2022
Virtual
To assist the region’s Members in cooperating on agricultural problems and to make recommendations on all matters within its geographical and technical competence, FAO convenes the European Commission on Agriculture every two years, between sessions of the FAO Regional Conference for Europe.
OneUN, Diverse Talents: Explore Opportunities in Finance, Economics, and Statistics in the United Nations | Webinar
📅 20 January 2022 🕟 3 PM (Brussels Time)/ 9 AM (Washington DC Time)
Virtual
The ‘OneUN, Diverse Talents’ is a series of insightful joint events unifying the United Nations system and bringing together more than 30 multilateral organizations for talent outreach.
