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  • MIL-OSI Economics: Press Briefing Transcript: Julie Kozack, Director, Communications Department, March 27, 2025

    Source: International Monetary Fund

    March 27, 2025

    SPEAKER:  Ms. Julie Kozack, Director of the Communications Department, IMF

    MS. KOZACK: Good morning, everyone, and welcome to today’s IMF Press Briefing. It’s great to see you all, those of you here in person and, of course, our colleagues online as well.

    I am Julie Kozak, Director of Communications at the IMF.  And as usual, this program press briefing is embargoed until 11:00 a.m. Eastern Time in the United States.  I will start with two short announcements and then I’ll take your questions in person, on Webex, and via the Press Center. 

    First, the 2025 Spring Meetings of the IMF and World Bank Group will take place from Monday, April 21st, to Saturday, April 26th.  The press registration to attend these meetings in person in Washington is now open, and you can register through www.imfconnect.org. 

    And second, I would like to announce that the Managing Director, Kristalina Georgieva, will be delivering her Curtain Raiser speech outlining the key issues facing the world economy.  The speech and a related fireside chat will be held here at IMF headquarters on Thursday, April 17th.  It will be open to registered media and via live streaming on our Press Center and IMF social media channels.  And we will provide more details closer to the date.

    And with that, I will now open the floor for your questions.  For those connecting virtually, please turn on both your camera and microphone when you are speaking.  And I’m now over to you.

    All right, let’s start with you.  Thank you.  Microphone here in the front. 

    QUESTIONER: Thank you very much, Julie.  Minister Luis Caputo announced this morning in Argentina that the Argentine government had agreed with the IMF staff amount of $20 billion for the new program.  I’m sure you know this was a very highly unusual announcement.  I wanted to know first if this was coordinated with the IMF, if you had agreed with Mr. Caputo to release this information?  Second, if you can confirm that the actual amount of the program that’s been discussed is $20 billion.  Then the IMF has a lot of internal processes before a program is actually announced, so could this number change through that process?  And if you can give us a sense of the timing before the actual staff-level agreement announcement and eventually the board meeting and that’s all.  Thanks. 

    MS. KOZACK: Okay, very good. Thank you. Other questions on Argentina. 

    QUESTIONER: Mr. Caputo said the disbursement will be $20 billion.  Will it be a single disbursement, just one single disbursement?  Thank you, Julie.

    MS. KOZACK: Okay, thank you. Let’s go online.

    QUESTIONER: Hi, good morning.  Well, we are all referring to the speech of Caputo, which was a big surprise in Argentina at least.  So one of the rumors that Minister Caputo denied was that the IMF was demanding a 30 percent devaluation.  My question is, does the IMF believe an exchange rate correction is necessary?  Thank you, Julie. 

    MS. KOZACK: Thank you.

    QUESTIONER: Yes.  Hi, Julie.  Thank you.  So my question is, first of all, if you can confirm how much of the $20 billion dollars are going to be freely available?  And second, if there is any certainty at this stage of the negotiations whether the new program will include modifications to the current exchange rate regime, as the market and private sector seem to have considered in recent days?  Thank you.

    QUESTIONER: Good morning.  Well, I would like to know if a scheme of exchange rate bands is being considered in this agreement and if the agreement implies an increase in depth with the IMF?  And finally, if there is a technical agreement already done?

    MS. KOZACK: Okay, thank you. Anybody else want to come in on Argentina? Okay, let me go ahead and take these questions. 

    So first I want to just start by saying, and this is consistent with our previous statements, that Argentina has embarked on a truly impressive stabilization program.  And the country has shown that it’s determined to steer the — the authorities have shown that they are determined to steer the economy toward a more sustainable path. 

    Since the end of 2023, inflation has declined thanks to a very large fiscal consolidation and steps to heal the Central Bank’s balance sheet.  These measures have been complemented by deregulation, market reforms, and the elimination of distortions and some controls.  The reforms are starting to bear fruit.  Despite the sharp macroeconomic adjustment, economic activity is recovering strongly, real wages are increasing and poverty is declining.  This decline in poverty also reflects, of course, a significant increase in social assistance to vulnerable groups.  There is also a shared recognition between the Fund and the authorities that now is the time to move to the next steps of the authority’s stabilization plan. 

    In this regard, significant progress has been made in reaching understandings toward a new IMF supported program.  And this has followed intense and productive discussion, and those include in-person meetings in Buenos Aires and also here in Washington, D.C.  And at the Fund we have engaged at all levels. 

    What I can say now is that discussions on a new Fund supported program are very advanced and those discussions include discussions around a sizable financing package.  The size of that package is ultimately to be determined by our Executive Board, but I can confirm that discussions are focusing on a sizable package. 

    As for our processes, we do have a set of processes that we always follow when engaging with country authorities on a program.  And as part of these routine internal processes, we have also been engaging with our Executive Board.  With respect to the policies that will be covered under the program, as we’ve noted in the past here, discussions are still ongoing on the specific policies that will be covered under the program. 

    What I can say is that to sustain the gains that have been achieved so far by the authorities, there is a shared recognition about the need to continue to adopt a consistent set of fiscal, monetary, and foreign exchange policies while fostering further and furthering growth enhancing reforms.  And what I can also say is that we will keep you updated as discussions continue. 

    QUESTIONER: What about the amount?

    MS. KOZACK: So with respect to the amount, the amount or the size of the program will be determined ultimately by our Executive Board. What I can say today is that discussions are focused on a sizable financing program.

    And in terms of your question about single disbursement versus a phased disbursement, as with all of our programs, disbursements will come in tranches over the life of the program.  But the exact phasing and the size of each tranche is also, of course, part of the discussions that are underway. 

    QUESTIONER: The number is okay?

    MS. KOZACK: All I’m saying now is that the discussion is around a sizable financing program. That’s what I can say today.

    QUESTIONER: Thank you, Julie. 

    MS. KOZACK: Okay. Let’s go here.

    QUESTIONER: Thank you so much, Julie.  So I would like to ask you about the IMF prospects on the Russian economy.  Does the IMF plan to update its outlook on Russian GDP growth in 2025 during its next review?  What is the overall perspective on inflation easing signs?  Does the IMF plan to highlight any changes in potential monetary policy from the Central Bank?  And what is, from the IMF perspective, the current level of business activity in the Russian economy?  Thanks. 

    MS. KOZACK: Okay, thank you. On Russia.

    QUESTIONER: The Central Bank of Russia has maintained its key interest rate at 21 percent since October 2024 to combat inflation.  How does the IMF assess the effectiveness of this high-interest rate policy in controlling inflation?  And what are the IMF’s projections for Russia’s inflation trajectory in 2025 and what factors are expected to influence these trends?  Thank you. 

    MS. KOZACK: Great. Thank you very much. Are there any other questions on Russia?  Okay. 

    What I can say about the Russian economy is that our assessment is that the Russian economy was affected by overheating in 2024 and growth was driven by private consumption, which was supported by a tight labor market, fast-growing wages, and buoyant credit from the banking system into the economy.  This overheating also reflected strong corporate investment.  Fiscal policy did play a role in driving growth. 

    In 2025, what I can say is, and here I’m quoting from the January WEO, and I can confirm that we will be updating the projections for Russia, as with all countries for the April WEO.  But in January, we said we expected a slowdown in 2025 as the impact of tighter monetary policy took hold and the cyclical recovery ran its course, meaning that the boost to growth waned into 2025.  So in January, we had growth slowing from 3.8 percent in 2024 to 1.4 percent in 2025.  And again, that assessment will be updated as part of the WEO. 

    Now, with respect to inflation in particular, inflation in Russia remains high.  It is well above the Central Bank of Russia’s target, which is 4 percent.  And this partly reflects the tight labor market and also strong wage growth.  Currently, we are not seeing signs of an easing of inflation, although the projections that we had in the January WEO did suggest an easing of price pressures in the coming year.  And of course, just to reiterate that our assessment of Russia, the Russian economy, will be updated as part of the WEO. 

    QUESTIONER: Thank you, Julie.  My question is on the inflation expectation at the global level, not only U.S. but also in Japan recently, inflation expectation raised substantially up.  And how much are you concerned about such movement translating into the real inflation and, in the near future, given the tariff policies conducted by U.S. Administrations?  Thank you. 

    MS. KOZACK: Thank you. So what I can say on inflation at the global level, and this is, again, I’m going to be quoting here from our January and October WEOs. So what we expected at the time of our January WEO update was that global inflation would continue to decline.  We expected in January that it would reach 4.2 percent in 2025 and 3.5 percent in 2026.  And at that time, we expected that advanced economies would achieve their inflation targets earlier than emerging market economies. 

    Now, since that January update, what we have seen is greater than expected persistence in inflation.  And so this is a key factor that will be taken into account as we are updating not only our growth projections in the April WEO, but also our inflation projections.  And what this means for central banks and policymakers is, of course, that agile and proactive monetary policy is going to be needed to ensure that inflation expectations remain well anchored.  And of course, we’ll have a full discussion of inflation developments at the time of the WEO. 

    QUESTIONER: Hi.  Thanks, Julie.  I’m wondering if you can weigh in a bit on President Trump’s announcement yesterday of universal car tariffs of 25 percent.  This is going to send shock waves through a production system throughout the world that provides employment to millions of people, and supports economies all over.  I know it’s early to gauge the exact impact of what this would mean, but I’m wondering if you can talk directionally about how this could start to impact countries, particularly emerging markets that are in that supply chain.  Thanks. 

    MS. KOZACK: Thank you. Same topic, right?

    QUESTIONER: Thank you.  We have seen the impacts of the — sorry, let me start over again.  So following up on what David said regarding the tariff, how do you see the impact on these on economies — on the African continent in particular?  And also, you know, we are seeing more of nationalism and protectionism.  It’s from the U.S., and it’s spreading around the world as well.  So how concerned is the IMF regarding these. 

    QUESTIONER: Just to follow up.  In terms of the WEO that you’re preparing, how will these tariff actions be filtered into that in terms of inflation projections as it raises costs, does the IMF sort of see these as a one-time jump up in price level or is it going to contribute to ongoing inflation?  Thank you. 

    MS. KOZACK: Same topic?

    QUESTIONER: Thank you, Julie.  As a result of all the policy that we are witnessing right now, can the IMF rule out any risk of recession in the United States in 2025, 2026, or if we are not talking about annual decline, could you see any risks in quarter estimates? 

    MS. KOZACK: Okay, so let me say a few — respond to this set of questions.

    What I can say today is, we’ve seen several new developments on the trade front over the past several weeks and of course yesterday we had announcements about tariffs on the auto sector.  And the U.S. administration has also noted and announced that it will — that there will be new announcements coming next week on April 2nd. 

    What  I can say today is that we are in the process of assessing the impact of all of these announcements, and we will continue to do that work in the context of our World Economic Outlook that will be released as I noted in April. 

    We have previously noted that for countries like Mexico and Canada that if sustained tariffs could have a significant effect on Mexico and Canada, a significant adverse impact on Mexico and Canada.  For other regions and groups of countries, we’re in the process of undertaking that analysis at the moment. 

    What I can say about the way or the process by which this will be incorporated into the WEO, the way the process works is we will look at all of the announcements and economic developments and data up until as far as we can into the process.  But at some point, there will need to be sort of a cutoff date after which we’re no longer able to incorporate new information.  We’re not there yet.  But at some point in the process there will be a date after which we just for production processes, need to kind of stop the churning of the data. 

    What the WEO will then have is a very clear exposition of what is incorporated into our baseline forecast, our main forecast.  We’ll talk about the assumptions that are included and any policy announcements and actions that are included in the baseline forecast.  Anything that occurs after our cut-off date will be discussed in qualitative terms or as part of the risks section of the report.  But we will aim, of course, in that report to be very clear about what is incorporated into the forecast and what is not incorporated into the forecast.  And of course, you will have an opportunity the week of the Annual Meetings to not only read the WEO, but we will have a press conference led by our Economic Counselor to answer detailed questions around the forecast.  And we will also have the press conferences of our regional area department heads to talk to answer specific regional questions. 

    And just maybe on the question about the U.S. economy, just to say perhaps a few words.  What I can say now is that the performance of the U.S. economy has been remarkably strong throughout the recent monetary policy tightening cycle.  Activity and employment exceeded expectations, and the disinflation process proved less costly than most feared.  And this was our assessment at the time of our January WEO.  Since then, of course, there have been many developments.  Large policy shifts have been announced, and the incoming data is signaling a slowdown in economic activity from the very strong pace in 2024.  All of this said, recession is not part of our baseline. 

    Let’s now move online. 

    QUESTIONER: Thank you, Julie, for taking my questions.  My question is on Sri Lanka.  Sri Lanka’s Central Bank Governor has hinted, also suggested that the heavily indebted state-owned enterprises should be listed in the Colombo Stock Exchange as part of a program to perform these enterprises.  What is the IMF’s take on such a proposal given that the program also calls for extensive reforms in SEOs — I beg your pardon, SOEs? At the same time, $334 million was approved by the IMF Executive Board recently.  Has that tranche been given to Sri Lanka?  If not, why?  Thank you. 

    MS. KOZACK: Okay. Any other questions on Sri Lanka online? Okay, let me take this question on Sri Lanka. 

    So first, let me just step back on Sri Lanka.  First, I’ll say that on Friday, February 28th, the IMF Executive Board approved the Third Review under the EFF (Extended Fund Facility) arrangement for Sri Lanka.  And this provided the country with immediate access to $334 million of support.  So, yes, once the Board approved that Third Review, the $334 million was made available to Sri Lanka to support its economic policies and reforms.  And with this $334 million, it brings total financial support from the IMF to Sri Lanka to $1.34 billion. 

    What I can also add is that reforms in Sri Lanka are bearing fruit.  The economic recovery is gaining momentum.  Inflation remains low in Sri Lanka, revenue collection on the fiscal side is improving, and international reserves are continuing to accumulate.  Economic growth reached 5 percent in 2024, and that was after two years of economic contraction.  And we do expect the recovery to continue in 2025 in Sri Lanka.  These are all very positive developments for Sri Lanka and for the people of Sri Lanka. 

    All of this said, the economy still does remain vulnerable, and therefore it is critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved. 

    And with respect to your specific question, I don’t have anything for you on that regarding the SOEs, but we’ll come back to you bilaterally. 

    I have one question here online from Shoaib Nizami from ARY News TV.  And the question is, when will Pakistan receive Climate Resilience Funds?  So before I turn to this, are there any other questions on Pakistan?  Okay, let me talk a little bit about Pakistan then. 

    So again, just stepping back to explain where we are with Pakistan.  On September 25th of 2024, the Executive Board approved a 37-month EFF arrangement for Pakistan, and it was for $7 billion.  The First Review took place… the First Review mission took place recently, and a staff-level agreement on the First Review was reached on March 25th.  And in addition to reaching a staff-level agreement on the EFF arrangement for the First Review, there was also a staff-level agreement reached on an RSF, a Resilience and Sustainability Facility, that was also reached on March 25th.

    Under the EFF part – so I’m going to talk about both of them.  So the EFF part, which is the First Review under the program, once approved by the IMF’s Executive Board, that would enable Pakistan to have access of about $1 billion for that disbursement.  For the RSF over the length of the arrangement, again subject to approval by the IMF’s Executive Board, the staff-level agreement references an amount of $1.3 billion and that access will be over the life of the RSF, delivered in tranches. 

    Okay.  Kyle, you had a question in the room. 

    QUESTIONER: Good morning.  Kyle Fitzgerald with the National.  So, following the recent staff visit to Lebanon, the IMF and Lebanon agreed to remain in close contact on a new economic reform program.  I was just wondering if you could provide more clarity on what the next steps are and what a potential timeline for this looks like.  Thank you. 

    MS. KOZACK: Okay, very good. With respect to Lebanon, I also have another question online which I am going to read out loud. It is from Sabine Oawais from Annahar (phonetic).  There are two questions here.  The first is when does the IMF anticipate the signing of a program with Lebanon?  What prior actions must the Lebanese government take before reaching final agreement?  The second is, given Lebanon’s ongoing economic challenges, what specific reforms does the IMF see as critical for stabilizing the country’s financial system and securing a sustainable recovery? 

    Before I respond on Lebanon, are there any other questions on Lebanon?  Okay.

    So on Lebanon, an IMF fact-finding mission visited Lebanon from March 10th to 13th.  And on that mission, the staff welcomed the authority’s request for a new IMF-supported program to support the authority’s efforts to address Lebanon’s significant economic challenges.  We have received, obviously, this request for a new program.  We’re working with the authorities to help them develop their comprehensive economic reform program.  The engagement and discussions with the Lebanese authorities are ongoing. 

    And in terms of what is needed, what I can say is that first and foremost what is needed is a comprehensive strategy for economic rehabilitation.  This is going to be critical to restore growth, reduce unemployment and improve social conditions.  The authority’s reform program is going to need to be focused on fiscal and debt sustainability, financial sector restructuring, international reserves are continuing to accumulate.  Economic growth reached 5 percent in 2024, and that was after two years of economic contraction.  And we do expect the recovery to continue in 2025 in Sri Lanka.  These are all very positive developments for Sri Lanka and for the people of Sri Lanka. 

    All of this said, the economy still does remain vulnerable, and therefore it is critical that the reform momentum be sustained to ensure that macroeconomic stability and debt sustainability are durably achieved. 

    And with respect to your specific question, I don’t have anything for you on that regarding the SOEs, but we’ll come back to you bilaterally. 

    I have one question here online . And the question is, when will Pakistan receive Climate Resilience Funds?  So, before I turn to this, are there any other questions on Pakistan?  Okay, let me talk a little bit about Pakistan then. 

    So again, just stepping back to explain where we are with Pakistan.  On September 25th of 2024, the Executive Board approved a 37-month EFF arrangement for Pakistan, and it was for $7 billion.  The First Review took place… the First Review mission took place recently, and a staff-level agreement on the First Review was reached on March 25th.  And in addition to reaching a staff-level agreement on the EFF arrangement for the First Review, there was also a staff-level agreement reached on an RSF, a Resilience and Sustainability Facility, that was also reached on March 25th.

    Under the EFF part – so I’m going to talk about both of them.  So the EFF part, which is the First Review under the program, once approved by the IMF’s Executive Board, that would enable Pakistan to have access of about $1 billion for that disbursement.  For the RSF over the length of the arrangement, again subject to approval by the IMF’s Executive Board, the staff-level agreement references an amount of $1.3 billion and that access will be over the life of the RSF, delivered in tranches. 

    QUESTIONER: Good morning. So, following the recent staff visit to Lebanon, the IMF and Lebanon agreed to remain in close contact on a new economic reform program.  I was just wondering if you could provide more clarity on what the next steps are and what a potential timeline for this looks like.  MS. KOZACK: Okay, very good.  With respect to Lebanon, I also have another question online which I am going to read out loud.  There are two questions here.  The first is when does the IMF anticipate the signing of a program with Lebanon?  What prior actions must the Lebanese government take before reaching final agreement?  The second is, given Lebanon’s ongoing economic challenges, what specific reforms does the IMF see as critical for stabilizing the country’s financial system and securing a sustainable recovery? 

    Before I respond on Lebanon, are there any other questions on Lebanon?  So on Lebanon, an IMF fact-finding mission visited Lebanon from March 10th to 13th.  And on that mission, the staff welcomed the authority’s request for a new IMF-supported program to support the authority’s efforts to address Lebanon’s significant economic challenges.  We have received, obviously, this request for a new program.  We’re working with the authorities to help them develop their comprehensive economic reform program.  The engagement and discussions with the Lebanese authorities are ongoing. 

    And in terms of what is needed, what I can say is that first and foremost what is needed is a comprehensive strategy for economic rehabilitation.  This is going to be critical to restore growth, reduce unemployment and improve social conditions.  The authority’s reform program is going to need to be focused on fiscal and debt sustainability, financial sector restructuring, governance improvements, and reforms to state owned enterprises.  And critically, it’s going to be important to enhance data provision, to improve transparency and to inform policymaking.  And that is the latest update that I have on Lebanon.  We’ll of course keep you updated and I just want to reassure that we are fully committed to working with the Lebanese authorities and the engagement is ongoing and constructive. 

    Let me go online.  We have a few online before I come back to the room.  And I have another question to read here, which is on Egypt.  The question on Egypt is how do you assess the Egyptian economy right now, taking into consideration the impact of geopolitical tensions in the Middle East region? 

    So let me say a few words on Egypt, but before I do so, are there any other questions on Egypt?  So on Egypt, first, I just want to start by saying that on March 10th, the IMF’s Executive Board concluded the 2025 Article IV consultation and completed the Fourth Review under the EFF arrangement.  This enabled the authorities to draw $1.2 billion.  The Executive Board at that time also approved the RSF arrangement, which paves the way for Egypt to access about $1.3 billion over the life of the RSF. 

    Now, with respect to the specific question, our projections for growth, and this is the question about the impact on the Egyptian economy of tensions, our projections for growth in inflation for the next fiscal year — Egypt uses fiscal year, so it’s a 2025-2026 fiscal year — indicate a growth rate of 4.1 percent.  And this is an increase from 3.6 percent in the previous fiscal year.  And on the inflation side, we expect inflation to continue a downward trajectory and reach 13.4 percent by the end of this period.  We’ll be looking to update these projections for Egypt as part of our update in April of the World Economic Outlook.  And of course, those projections will take into account any recent developments. 

    What I can say more broadly for Egypt is that the main economic impact on Egypt of the tensions in the region has been through disruptions in the Red Sea and the disruptions to revenues through the Suez Canal.  Trade disruptions in the Red Sea in Egypt since December of 2023 have reduced foreign exchange inflows from the Suez Canal by about $6 billion in 2024 alone for Egypt.  And the volume of transit trade is about one third of pre conflict levels.  And so this has of course, adverse spillovers to growth in Egypt and also to fiscal revenues in Egypt.  That is the main area that we’re focused on in terms of how Egypt is being affected by the tensions in the region.  And of course, we’ll continue to closely monitor that as part of our deep and constructive engagement with Egypt. 

    QUESTIONER: Yes, thank you, Julie.  Can you hear me all right? 

    MS. KOZACK: Yes, we can hear you.

    QUESTIONER: Just a quick follow up on Argentina.  You mentioned the amount of discussion will be sizable.  I appreciate we can’t discuss what a final figure might be at this point, but can you confirm that Argentina has requested a loan package of around $20 billion or at least discussed a similar figure as Minister Caputo said this morning. 

    MS. KOZACK: Look, I’m not — just as with the other questions in terms of the ongoing discussions, I’m not going to get into the details of those discussions. They are ongoing. And I can simply confirm that the size of the final package for Argentina will be determined by our Executive Board and that the discussions are for a sizable financing package. 

    QUESTIONER: I want to look at the Caribbean specifically on this one.  With the U.S. proposing to tariff Chinese vessels to the tune of $1.5 million docking to an extent in the U.S., what recommendations or how does the — what does the IMF foresee in terms of potential economic fallouts for Small Island States within the Caribbean region going forward?  And this is in keeping with the tone of questions in the room there.  Do you foresee any potential — or what recommendation would the IMF give to Small Island States, especially those in the Caribbean region, about potential inflation as you look towards the future and tariffs “here is the name of the game” from the United States?

    MS. KOZACK: I’d say like with all of the other impacts of recent developments, we will be discussing this in our World Economic Outlook. But also, I think importantly for the Caribbean, we will have a discussion around regional developments by our Western Hemisphere Department.  And that discussion will, of course, cover the specific impacts on the Caribbean. 

    What I can say today about the Caribbean is to just give a sense of where we stood in our latest forecast, which was in January of 2025.  At that time we expected that growth in the region would be normalized.  So, what we saw in the Caribbean was a kind of rapid recovery after the Pandemic.  And now we’re seeing a normalization phase, or at least that was our assessment in January.  And we expected real GDP growth to reach 2.4 percent in 2025, which would have been about the same as in 2024.  What we saw on inflation again in January was that it had moderated significantly in 2023 and 2024 and that inflation in the Caribbean had returned to pre-Pandemic levels.  So of course, we will then incorporate any of the recent developments in our revised forecast, which will be coming out in April, and we can have a — we’ll have a fuller picture at that time. 

    But just to say a few words on the policy advice, our policy advice for the Caribbean has been more broadly to continue to pursue sustainable fiscal policies to continue to rebuild policy buffers and to strengthen the resilience of domestic economies and institutions.  We also encouraged Caribbean economies to accelerate investment in infrastructure and to implement necessary reforms to boost growth.  And again, we will have a fuller update in January — I mean, sorry, in April. 

    I see some more questions coming online for me to read.  I have a question online on Kenya.  And the question says at the end of the Eighth Review, and I assume under the program, Ms. Gita Gopinath stated, Kenya’s economy remains resilient with growth above the regional average, inflation decelerating and external inflows supporting the shilling and a buildup of external buffers despite a difficult socioeconomic environment.  What has changed since then that has prevented completion of the Final Review under the program? 

    So, before I move to Kenya, are there other questions on Kenya?  QUESTIONER: Thank you, Julie.  Yes, on Kenya, if there’s any details on, on why that last review was ditched as, as my colleague asked, and did they fail to meet any of their targets?  And can we expect any update on, on a request of a new program?  MS. KOZACK: Okay.  I don’t see anything else on Kenya.  So let me give this update on Kenya. So we did recently have an IMF staff team recently visited Kenya for a staff visit.  We did issue a statement on March 17th and in that statement, what was noted is that the Kenyan authorities and the IMF reached an understanding that the Ninth Review under the EFF and ECF programs would not proceed. 

    Where we — what I can say more generally is that the authorities, policy, agenda, and reform programs have been supported by the IMF and they have helped improve Kenya’s economic resilience.  As was stated in the first question, the external position has indeed strengthened over the past year and inflation has eased. 

    All of this said, fiscal challenges do remain amid continued revenue shortfalls and the materialization of additional spending pressures.  And what this is going to require is a reassessment of the medium-term fiscal consolidation strategy to ensure that fiscal sustainability can be preserved.  These challenges will require more time to resolve, and the IMF has therefore received a formal request for a new program from the authorities.  And we are going to — we are, our team is engaging on this request of the authorities, and they remain closely in contact with the authorities.  We’ll provide additional details as we have them.  I can just add that we do remain committed to supporting Kenya’s efforts to realize its full economic potential. 

    QUESTIONER: So I was wondering if you could provide an update on Nigeria, Senegal, and Zambia.  I know the Managing director met with the Finance Minister of Zambia yesterday.  So if you have any update that you could provide regarding the debt restructuring.  And on Senegal, there was a release that was issued yesterday by the IMF defining, confirming that there was a significant underreporting of the fiscal deficit.  How did the IMF miss that information and how do you plan to ensure that it doesn’t happen?  And are you looking to change your methodology? 

    MS. KOZACK: So, on Nigeria, what I can say is [that] the first Deputy Managing Director, Gita Gopinath, traveled to Abuja and Lagos on March 3rd and 4th. She met with Finance Minister Edun, Central Bank Governor Cardoso, as well as civil society groups and private sector leaders. And she also participated in an event with students at the University of Lagos.  Our staff are planning to travel to Nigeria next week in preparation for the 2025 Article IV Consultation.  The authorities’ policies to stabilize the economy and to promote growth are welcome, and they will, of course, need to be accompanied by targeted social transfers to support the most vulnerable populations. 

    We do recognize the extremely difficult situation that many Nigerians face.  And for that reason, I just want to emphasize that completing the rollout of cash transfers to vulnerable households is an important priority for Nigeria, as is improving revenue mobilization domestically. 

    And that is the latest that I have on Argentina and not will — not Argentina, I’m looking at Rafael — on Nigeria, and we will have, of course, more after the mission completes its work.

    MS. KOZACK: Now on Senegal, what I can say on Senegal is, you know, we are actively engaged with the Senegalese authorities and a staff team, which included experts from several different IMF departments, visited Senegal on March 18th through 26th. And they released the statement, of course, that you referred to at the end of that mission. The purpose of the mission was to advance efforts to resolve the recent misreporting case. 

    I think, as we have discussed here before, Senegal’s Court of Auditors released its final report on February 12.  The Court confirmed that the fiscal deficit and public debt were under-reported over the period 2019 to 2023.  And we’re also, our team is also working closely with the authorities to resolve those — that misreporting case and to look at what measures can be taken to ensure, of course, that it doesn’t happen going forward, what are the root causes, and what needs to be done to support Senegal as it seeks to move forward.

    What I can also add is that we collaborate.  The IMF collaborates closely with member countries in all of our engagements, but at the end of the day, it is the member country that is responsible for providing us with accurate and comprehensive data.  While we are partners in the process, it is really the primary responsibility of the country authorities to ensure that the credibility and the quality of the data is accurate.  And we do, of course, for countries that are finding shortcomings in data quality or data accuracy or who want to improve their data reporting, we do offer technical assistance through our experts to help support countries that are interested in improving their data provision. 

    QUESTIONER: Can I quickly ask, regarding that, about the technical support that you provide?  How much — how many African countries are taking advantage of? 

    MS. KOZACK: It is a good question. I do not have the numbers in front of me, but we can certainly come back to you bilaterally. Overall, the continent of, you know — well, Sub-Saharan Africa, the region of Sub-Saharan Africa, is a heavy user of technical assistance services.  How [many] of those are in the area of data and statistics, I do not know.  But we can certainly come back to you bilaterally with that information

    And then on Zambia, I don’t have an update here for you, but we can come back to you bilaterally on Zambia. 

    QUESTIONER: Okay.  Thank you very much.

    MS. KOZACK: Last question.

    QUESTIONER: Thank you, Julie.  And I am sorry for bothering you a third time in a row.  It is about the Black Sea Grain Initiative.  I presume that it is too early to assess, but from the IMF perspective, how can potential moratorium on strikes on the Black Sea between Russia and Ukraine contribute to global trade, food security, and overall, does the IMF monitor the current ongoing discussions on this topic?  MS. KOZACK: Okay, very good.  So, on this one, what I can say is, of course, we are closely monitoring the discussions around the Black Sea.  I do not have a full assessment, of course, now.  What I can say is that there is quite a bit of global trade that goes through the Black Sea.  I think the number is about 7 percent.  And also, we know that some of that global trade is concentrated in key food commodities like wheat.  And to the extent that there is a, let us say, improvement in the ability for transit through the Black Sea, particularly with respect to important global food commodities, that should help ease food shortages globally. 

    With that, I’m going to bring this Press Briefing to a close.  Thank you all for joining us today.  As a reminder, the briefing is embargoed until 11:00 a.m. Eastern Time in the United States.  A transcript will be made available later on IMF.org and as always, in the case of clarifications or additional queries, please do not hesitate to reach out to my colleagues at media@imf.org.

    This concludes our Press Briefing for today, and I wish everyone a wonderful day.  I look forward to seeing you next time and, of course, at the Spring Meetings.  Thank you. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Brian Walker

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics –

  • MIL-OSI United Nations: SRSG Kamal Kishore’s speech at the High-Level Policy Forum on Accelerated Financing for Disaster Risk Reduction to Build Resilience in Oslo, Norway

    Source: UNISDR Disaster Risk Reduction

    Your Excellency, Åsmund Aukrust, Minister of International Development,

    Excellencies and Colleagues,

    It is a great honour for the UN Office for Disaster Risk Reduction to be organizing this high-level forum with the Kingdom of Norway. I would like to start by expressing my deep appreciation to Norway for hosting this forum and for its leadership on the topic of finance – both for disaster risk reduction and for sustainable development, especially in the context of the ongoing negotiations ahead of the 4th International Conference on Financing for Development. 

    I am also thankful to Norway for serving as co-chair of the Group of Friends for Disaster Risk Reduction, which is critical to supporting the work of UNDRR as we race towards the 2030 deadline of the Sendai Framework for Disaster Risk Reduction.

    Indeed, as we look around the world, it is clear that we must accelerate the implementation of the Sendai Framework to protect people and sustainable development from the growing impacts of disasters.

    Countries, rich and poor, are facing disasters that are larger and more destructive. This is partially driven by an increase in extreme weather events, but it is also driven by risk-blind investments, which increase the exposure and vulnerability of people and assets. The end result is more expensive disasters, which are a threat to economic prosperity and sustainable development.

    Over the last five years, global economic losses from disasters have increased on average by 25%. This increase represents tens of billions of additional losses each year.

    We have seen this manifest on one end of the spectrum with the recent California wildfires, which were reportedly the most expensive disaster in the history of the United States. 

    On the other end of the spectrum, we have seen war-ravaged Syria suffer approximately $5 billion US dollars in damages as a result of the 2023 earthquakes, and the Libyan city of Derna largely swept into the Mediterranean as a result of severe floods. This is on top of the loss of life, which was in the thousands, and continues to be felt most acutely by the Least Developed Countries. 

    When we add on top of these direct costs, the cost of slow-onset events and the indirect impacts of disasters, such as productivity losses, compromised health, and disrupted education, the total cost of disasters is likely in excess of a trillion US dollars a year.

    Moreover, as disaster costs increase, insurance companies are pulling out of high-risk markets, even in developed economies. For instance, “nonrenewal notices” of home insurance in the United States surged by nearly 30% from 2018 to 2022 to more than 600,000 a year.  And in developing countries, much of the losses, are not even covered by insurance, driving more people into poverty. 

    Even humanitarian assistance, which is a measure of last resort for many affected countries, is becoming scarcer. In 2024, only 43% of the budgeted needs were funded.  This year, the gap will likely be higher.

    Therefore, to reduce the burden of disasters, avoid a spiral of decreasing insurability, and limit humanitarian needs, it is essential that we invest in disaster risk reduction. 

    This means increasing dedicated funding to disaster risk reduction, while also ensuring that all other development investments are risk-informed. 

    At this Forum, we will dive into this issue in detail. And to help set the stage, I would like to briefly review where these investments could come from, starting first with domestic resources. 

    Domestic public funds are the primary source for investments in DRR. Early warning systems, resilient hospitals, and other DRR investments tend to have a public good nature, meaning that they benefit society but are difficult for investors to capture direct financial returns. 

    Yet, our research shows that only a limited share of the public budget, less than 1%, is allocated to DRR and that current spending only meets in most countries 10 to 25% of the needs, leaving a significant gap. 

    Although resources are limited, countries have an opportunity to make public spending more efficient and impactful by further integrating disaster risk reduction in public finance. This requires a conscious effort to create a ring-fenced budget allocation for DRR to empower responsible agencies, while also mainstreaming DRR in sectoral plans. To that end, we recommend the use of appropriate accountability mechanisms, including budget tagging and tracking of DRR-related expenditures. 

    We also need to reinforce synergies across government, for instance between the Ministries of Environment and National Disaster Management Authorities, to break silos and optimize the use of climate and DRR-related financing. Similarly, we need to ensure that finance is available both at the national and sub-national levels, as many investments happen locally.

    That said, it is important to consider that many developing countries face unique challenges that constrain their ability to scale up investment in DRR – and that is high levels of debt. 

    Since 2010, debt in developing countries has grown twice as fast as in developed countries, and they face much higher borrowing costs. 

    At the same time, disasters fuel debt in affected countries. For example, a recent study from the Inter-American Development Bank shows that debt levels in the Caribbean are 18% higher three years after a severe storm than normally expected. 

    These outcomes can be mitigated by pre-arranging financing mechanisms ahead of disasters, such as contingency credit lines, disaster-related clauses in sovereign debt instruments, and risk-transfer instruments. These mechanisms allow for a quicker recovery, thus limiting the impact on growth and the economy. 

    The second primary source of finance is the private sector. 

    On average, the private sector is responsible for about 75% of a country’s investment in assets, such as factories and real estate. If those investments are risk-blind, they will lead to the creation of new disaster risks and exacerbate existing ones. We see this, for instance, through the expansion of urban development into hazard-prone areas or the construction of infrastructure that is not disaster-resilient. 

    This can be avoided through regulatory frameworks, risk information, and financial incentives to make private investment risk-informed and to create markets for resilience-building solutions. 

    We should also better leverage the financial sector, which has played a limited role thus far in DRR financing. For example, the rapid rise in the green bond markets has only had a limited impact on driving investments into adaptation and resilience, in part due to the lack of market standards and taxonomies. These market standards are necessary for the emergence of financial instruments, such as resilience bonds, and to guide investor decisions. 

    Similarly, the local banking sector can play a role in supporting small and medium businesses to access finance for investment in resilience-building, including through blended finance mechanisms. 

    In this regard, I am happy to report that UNDRR has been pioneering some work in this area, including the development of a “Resilience Taxonomy,” in partnership with the Climate Bond Initiative, and the launch of a guide for adaptation and resilience finance, which we developed with Standard Chartered Bank and KPMG.

    The third and final major source of finance is the international community, specifically through the provision of Official Development Assistance. This is an area that is currently under stress but remains critical for many developing countries, and its promotion is one of the seven targets of the Sendai Framework.

    Looking at the data, we see that, between 2019 and 2023, only 2% of ODA projects had DRR as an objective. And within the humanitarian sector, we find that the amount of funding for disaster prevention and preparedness has actually gone down over the years – from an already low level of 3.6% between 2015 and 2018, to 3.3% between 2019 and 2023. 

    These trends show an imbalance between the increase in disaster risks around the world and the limited international funding being allocated to Disaster Risk Reduction.

    Such funding is critical to protecting development gains and reducing humanitarian needs, and for some of the most vulnerable countries, they are unable to invest in DRR without international assistance.

    With that overview, I believe we at this Forum have a unique opportunity to address some of the biggest challenges around DRR financing. And to help guide our discussions, I would like to suggest that we aim to make progress on three main objectives:

    First, the development of a national-level Roadmap for DRR financing systems to help countries raise the funds they need. 

    Some of the questions we would need to answer are: what key elements should be included in such a roadmap and what has worked, or not worked, in countries? 

    Second, explore international actions that we can commit to together. 

    For example, what initiatives or partnerships can emerge from this Forum on DRR Financing? How can we better leverage existing international cooperation to strengthen DRR? And how can we ensure the integration of DRR in the global discourse on financing, in particular, in the upcoming 4th International Conference on Financing for Development? 

    And third, what more can be done to ensure that all investments are risk-informed and do not lead to disasters

    For public sector investments, how can we encourage the alignment of economic development plans with DRR strategies to avoid the creation of new risks? And what reforms or changes are needed to encourage risk-informed investing in the private sector?

    I think it is fair to say that this is a lot to cover over two days. That said, given the calibre of the participants, and the leadership of our host, I am confident that we can achieve concrete outcomes. 

    In closing, I want to again thank Norway for making this Forum possible at a critical time when financing is the single challenge that unites the disaster, climate, development, and humanitarian domains. The unique advantage of disaster risk reduction is that it can simultaneously strengthen all the other domains because of its emphasis on reducing vulnerabilities and building resilience.

    I am grateful for your participation in this Forum, and I look forward to our discussions.

    Thank you.

    MIL OSI United Nations News –

  • MIL-OSI Economics: Isabel Schnabel: Financial literacy and monetary policy transmission

    Source: European Central Bank

    Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the 2025 Mais Lecture at Bayes Business School

    London, 27 March 2025

    According to our latest public opinion survey, more than 90% of respondents are aware of the European Central Bank.[1][2] But when asked about our tasks, only 43% said they know that the ECB is responsible for maintaining price stability, despite inflation continuing to be the most important issue for European citizens.[3]

    These findings are part of a broader societal phenomenon: the widespread lack of financial literacy.

    Financial literacy is the ability to understand and apply basic financial concepts. It empowers individuals to make informed financial choices, mitigate investment risks and make provisions for old age.

    In my lecture today, I will argue that financial literacy also matters for the transmission of monetary policy. I will show that financially literate individuals react more strongly to interest rate changes, are more willing to take on risk and are more forward-looking when forming inflation expectations.

    Together, these factors suggest that greater financial literacy tends to strengthen the transmission of central bank policies to the real economy. Therefore, it can make monetary policy more effective in achieving its objectives and lower the sacrifice ratio – that is, the cost of reducing inflation in terms of lost output or higher unemployment.

    For this reason, central banks, including the ECB, have increased their efforts to foster financial literacy. Such initiatives strengthen trust in central banks and support broader policy goals, including progress on the European savings and investment union.

    Financial literacy varies widely across socio-economic groups

    In 2021 G20 finance ministers and central bank governors recognised financial literacy as an essential skill for empowering people and supporting individual and societal well-being.[4] It is defined as the ability to understand and effectively use basic financial concepts to take personal financial decisions.

    Such decisions are taken at various stages of life. People have to decide how much of their income they want to spend and to save, how to best invest their savings, how to finance big purchases like an apartment or a house, and how to make provisions for old age or emergencies. This requires an understanding of how interest rates and inflation affect the return on various financial products and the cost of borrowing.

    The sharp economic fluctuations over the past few years have underscored how important financial literacy is for the well-being of households. The surge in inflation in the aftermath of the pandemic and the sharp rise in interest rates after a decade of low rates have highlighted the need for individuals to properly understand and react to a changing inflation and interest rate environment.

    Economists Annamaria Lusardi and Olivia Mitchell developed the “Big Three” financial literacy questions, which have become a widely used measure of financial literacy (Slides 2 to 4).[5]

    These questions assess basic knowledge in three areas that are of key importance for households’ financial decision-making: the concept of compound interest, the importance of inflation for the purchasing power of savings, and the benefits of diversifying a portfolio across different assets.[6] People are usually considered to be financially literate if they can answer all these three questions correctly.

    Numerous surveys collect information about the level of financial literacy across various countries and socio-economic groups, and the ECB has contributed to this effort by including questions on financial literacy in its consumer expectations survey.

    These surveys show that many people struggle to answer all three questions correctly. In the euro area, less than half of respondents, around 48%, managed to get all three questions right (Slide 5).

    Moreover, financial literacy varies widely across socio-economic groups.

    First, financial literacy is lower for younger people. Those aged below 50 display below-average financial literacy, which could negatively affect their ability to build up long-term wealth or their decisions about major purchases.[7]

    Second, women have on average significantly lower financial literacy than men. This could lead to a higher risk of financial hardship and could explain why women are more often at risk of old-age poverty.[8]

    Third, financial literacy increases with educational attainment and income, potentially reinforcing inequality as, on average, financially literate people take better financial decisions.[9]

    Finally, there is considerable variation across countries, also within the euro area. Financial literacy tends to be higher in northern European countries.

    Financial literacy matters for monetary policy transmission

    These differences have important implications for individuals, but they may also have an impact on the effectiveness of macroeconomic policies.

    Monetary policy is a case in point. The effectiveness of monetary policy relies on the smooth transmission of policy decisions – especially changes to key policy rates – to financing conditions and, from there, to economic activity and inflation.

    Today I will focus on three key channels through which financial literacy can influence the transmission of our monetary policy: the interest rate channel, the risk-taking channel and the inflation expectations channel.[10]

    Financially literate households react more strongly to interest rate changes

    In standard macroeconomic models, monetary policy works mainly through the interest rate channel: an increase in interest rates shifts intertemporal trade-offs in the direction of higher savings and less consumption due to a substitution effect. Higher interest rates dissuade firms from investing and households from purchasing houses or durable goods.

    Policymakers frequently use these models to derive policy prescriptions, thereby implicitly assuming that households react in an optimal way to changes in interest rates by adjusting their borrowing and saving.

    However, a lack of financial literacy in part of society could be one reason that not all people behave in the way that models with rational expectations assume. Consequently, policymakers may make mistakes in predicting household behaviour, affecting the way monetary policy is transmitted to the real economy.[11]

    For example, survey evidence suggests that financially literate households are more responsive to changes in interest rates.

    On the one hand, this reflects the fact that these households are more attentive to interest rate developments. Among financially literate households, 62% report paying “some”, “much” or “a great deal” of attention to the level of interest rates. For households with low financial literacy, this share is only 49% (Slide 6).[12]

    On the other hand, a financially literate person has a better understanding of how interest rate changes will affect their financial situation and how they should best respond.

    The experience of recent years is a good example. When the ECB raised its policy rates in 2022 to fight inflation, financially literate individuals understood that this created more beneficial conditions for saving and less attractive conditions for borrowing, strengthening policy transmission. By contrast, less financially literate people reacted much less strongly to the dramatic change in the interest rate environment (Slide 7).

    In other cases, the impact on transmission is less clear.

    Households with high levels of financial literacy preferred fixed-rate loans when interest rates were low, but less so when interest rates were high (Slide 8). This behaviour tends to slow down policy transmission, as it insulates these households from changes in the interest rate environment. By contrast, less financially literate households did not significantly adjust their preferences when interest rates increased sharply.[13]

    The financial literacy of borrowers and depositors may also affect how swiftly and strongly banks pass through changes in policy rates to financing conditions. This is a key step in monetary policy transmission.

    The more attentive households are to interest rates, the more likely they are to search for the best possible interest rate for both loans and deposits. Indeed, according to the consumer expectations survey, financially literate households are more likely to “shop around” for the best terms of debt products (Slide 9, left-hand side).

    The same is true for deposits. During the recent hiking cycle, banks had to increase deposit rates to prevent a deposit flight as depositors shifted from low-yielding deposits to higher-yielding investments.[14]

    Such behaviour is likely linked to financial literacy. In fact, during the recent tightening cycle, cash accounts of corporates, which are managed by finance professionals, received higher interest rates for both overnight and term deposits than those of households (Slide 9, right-hand side).

    Higher funding costs for banks then also translate into higher bank lending rates, strengthening the transmission of policy rates to financing conditions.

    Financial literacy increases risk-taking and stock market participation

    A second important transmission channel of monetary policy operates through investors’ risk appetite. This is the risk-taking channel.

    Monetary policy influences people’s willingness to take risks, with looser monetary policy being associated with greater risk-taking, as investors have an incentive to switch from safe assets to higher‑yielding alternatives.[15] Increased risk-taking, particularly through greater stock market participation, amplifies the aggregate effects of monetary policy adjustments.[16]

    Research indicates that financial literacy plays a crucial role in determining the extent to which households engage in risk-taking by investing in the stock market or other risk assets.[17] Financially literate households are much more likely to invest in stocks or mutual funds, thereby strengthening monetary policy transmission (Slide 10, left-hand side).

    Differences can also be found in the mortgage market.

    A higher share of financially literate households take out mortgages and other loans than is the case for households with low financial literacy, although the difference is quantitatively much smaller than for stocks (Slide 10, right-hand side). Changes in aggregate consumption in response to interest rate adjustments are to a large extent driven by households with mortgages.[18]

    Higher risk-taking may also affect monetary policy indirectly by mobilising private capital for riskier and more productive investments. More risk capital should lead to higher productivity growth and hence a higher natural interest rate, r-star, giving central banks greater scope to stimulate the economy through lower interest rates due to a greater distance to the zero lower bound.[19]

    The effects of higher risk-taking can be self-reinforcing. If a larger share of the population rebalances their portfolios by switching from savings products or bonds to stocks in response to looser monetary policy, this may encourage firms to make additional investments. The increase in investment leads to higher aggregate income, in turn leading to more investment in the stock market.[20] Through this channel, stock market participation can magnify the investment response to monetary policy shocks.[21]

    Wealth effects provide another amplifying channel, as looser monetary policy tends to go hand-in-hand with a better performance of riskier assets, increasing household wealth and fostering consumption, with important distributional consequences. However, as shown over the recent tightening cycle, asset prices may behave differently. Over this period, the dampening effect of higher rates on stock prices was more than offset by stronger risk sentiment, leading to a surge in stock prices. Such wealth effects weakened monetary policy transmission in the most recent hiking cycle.

    Lastly, financially literate households have been shown to be more likely to build up precautionary savings, making them better able to cope with financial shocks and smooth their consumption.[22] This may slow monetary transmission, as these households can initially draw on cash buffers when the cost of borrowing increases through policy tightening. Hence, the impact of financial literacy on risk-taking may also go in the opposite direction.

    Financially literate households are more forward-looking when forming inflation expectations

    A third key transmission channel of monetary policy is the inflation expectations channel.

    Since consumption and investment decisions as well as price and wage-setting processes reflect expectations about the future pace of price changes, household inflation expectations shape inflation dynamics. A growing body of research suggests that consumers’ expectations matter greatly for the transmission of monetary policy, possibly more than those of financial market participants.[23]

    Research by the International Monetary Fund shows that, over the recent inflation episode, near-term inflation expectations became an increasingly important driver of inflation in advanced economies (Slide 11, left-hand side).[24]

    In turn, factors that can reduce the sensitivity of inflation expectations to actual inflation developments can contribute to bringing inflation down more quickly. And the lower the sensitivity, the lower the sacrifice ratio, allowing for swift disinflation without causing high unemployment or a deep recession.

    It is therefore crucial that central banks understand how households form these expectations.

    Research shows that policy tightening has a stronger dampening effect on near-term inflation expectations and inflation when a greater share of people in the economy are forward-looking (Slide 11, right-hand side).[25]

    Forward-looking households form their expectations on the basis of a broader set of information, including central bank policies and their expected impact on the economy, while backward-looking households base their expectations to a larger degree on past inflation experience.

    Therefore, a higher share of backward-looking households means that the central bank must tighten monetary policy more to achieve the same drop in inflation.

    The degree to which households are forward-looking likely depends on their level of financial literacy.

    Survey evidence indicates that households with higher financial literacy pay more attention to inflation.

    52% of financially literate households pay “much” or “a great deal” of attention to inflation. This share stands at just 45% for the less financially literate (Slide 12, left-hand side). Higher attention also implies that these people are easier to reach through central bank communication.[26]

    However, these data also suggest that even for financially literate people, almost one half do not pay much attention to inflation. This may explain why inflation perceptions are often very persistent, adapting slowly to actual inflation dynamics. While headline inflation in the euro area dropped by almost 8 percentage points from its peak in October 2022 until the end of 2023, inflation perceptions fell by much less (Slide 12, right-hand side).

    Again, there is some difference of inflation perceptions across different levels of financial literacy: while the inflation perceptions of both groups were similar when inflation had reached its peak, those of financially literate people are now 1.6 percentage points lower than those of less financially literate people.

    Inflation expectations paint a similar picture. The one-year ahead inflation expectations of financially literate households have dropped much more quickly than those of the less financially literate (Slide 13, left-hand side).

    These two findings are linked and reflect the fact that individuals’ inflation perceptions have a substantial impact on their expectations of future inflation.[27]

    Overall, the share of consumers with inflation expectations broadly anchored around 2% – meaning that three-year inflation expectations are between 1.5% and 2.5% – has fluctuated around a level of only 17%, indicating a low degree of anchoring.

    Again, there are notable differences in inflation expectations linked to financial literacy. The share of consumers with medium-term inflation expectations anchored around 2% is significantly higher for financially literate households. However, these households have also been more responsive to actual inflation developments, with the share of consumers with medium-term inflation expectations around 2% declining more sharply when inflation surged and rising more strongly when it came down (Slide 13, right-hand side).[28]

    The observed differences in the formation of inflation expectations translate into lower deviations of individual one-year ahead forecasts from inflation perceptions at that time for more financially literate people, implying a lower subjective forecast error (Slide 14). In other words, households with higher levels of financial literacy tend to have more accurate inflation expectations.[29]

    Financial literacy also affects household perceptions of real, i.e. inflation-adjusted, incomes, with implications for monetary policy transmission. Over the past three years, real private consumption has increased more slowly than real disposable income. This can be partly explained by household misperceptions of their real income developments.[30]

    While over 50% of households in the euro area experienced positive real income growth in 2024, only 11% perceived that their real income had increased (Slide 15, left-hand side). The net percentage of pessimistic households is highest for the bottom half of the income distribution, and it is also higher for households with low financial literacy (Slide 15, right-hand side).

    This implies that lower inflation due to restrictive monetary policy generally had a weaker impact on consumption due to such misperceptions, dampening the recovery.

    The need for enhanced financial education initiatives

    The evidence presented explains why central banks have a keen interest in promoting financial literacy and improving financial knowledge.

    In our 2021 monetary policy strategy review, we acknowledged that communication to broader audiences is key for monetary policy. That is why we have put more emphasis on explaining our monetary policy decisions to the general public in an accessible way.[31]

    Since President Lagarde took office, the Governing Council has made significant progress in making communication more accessible. For example, the introductory statement to the press conference after our monetary policy decisions has been replaced with the monetary policy statement, which offers a more concise and compelling narrative, while significantly reducing the textual complexity of monetary policy announcements, thereby increasing readability (Slide 16). To reach audiences beyond experts, the statement has been complemented by highly accessible, visualised statements, available in all EU languages.[32]

    When people understand how monetary policy works, they tend to trust central banks more.[33] And people’s trust in the central bank and in its ability to maintain price stability has been shown to help anchor inflation expectations and increase the share of forward-looking people in the economy.[34]

    Knowledge about the ECB is linked to financial literacy. Financially literate households tend to be significantly more knowledgeable about the ECB and its inflation objective (Slide 17).

    This has implications for the ECB’s credibility. In the most recent inflationary episode, the share of households with high financial literacy that trusted the ECB to maintain price stability over the next three years rose notably after the ECB had embarked on its hiking cycle and inflation had come down significantly (Slide 18).

    By contrast, households with low financial literacy lost confidence in the ECB’s ability to maintain price stability as interest rates rose. Even when inflation had already come down significantly, the share of households that trusted the ECB’s ability to maintain price stability remained low. This is in line with recent evidence from the United States, where 60% of survey respondents believe that high interest rates cause high inflation.[35]

    Therefore, to maintain and improve their credibility, central banks should help people understand their policy actions and their economic effects through communication and enhance their efforts to improve financial literacy.[36]

    At the ECB, we are taking active steps to do this. We have expanded our communication efforts towards the general public by offering explainers on YouTube (through our “Espresso Economics” channel), by speaking more frequently on TV, by engaging on social media and by producing regular podcasts.

    Earlier this month, on International Women’s Day, the ECB took another step in promoting financial literacy by committing to five joint actions with national central banks, also aimed at closing the gender gap in financial literacy.[37]

    These include raising awareness, establishing a central bank financial literacy network, collaborating with national authorities for consumer protection, developing a harmonised financial literacy dataset across Europe, and focusing communication efforts on key moments in life, such as early education, taking out a major loan or building a pension.

    Of course, such efforts can only complement, not replace, much broader efforts needed from governments and the education system. And it requires a long-term effort, with progress likely to be incremental.

    Financial literacy is also an important cornerstone of the savings and investment union, one of the European Commission’s flagship projects.[38]

    Under its first pillar, it aims to encourage citizens to invest in capital markets, which can contribute to financing part of the massive investments needed for the green and digital transitions.[39] As I said before, financial literacy increases the willingness to make such investments. Therefore, an improvement in financial literacy is seen as essential to achieving the stated objectives. That is why the European Commission will adopt a financial literacy strategy, in line with the ECB’s efforts.

    Conclusion

    Let me conclude.

    Financial literacy is an essential life skill that not only empowers individuals to make informed financial decisions but can also make monetary policy more effective.

    Financially literate individuals respond more strongly to interest rate changes, are more willing to take on risk and are more forward-looking when forming inflation expectations. This tends to strengthen the transmission of central bank policies to the real economy.

    However, significant differences in financial literacy across socio-economic groups highlight the need for continued educational initiatives.

    Fostering financial literacy can support policy effectiveness, enhance public trust in central banks and help people make better financial decisions, ultimately contributing to a stronger economy and individual well-being.

    As Benjamin Franklin, who spent more than 16 years here in London, once said, “an investment in knowledge pays the best interest.”

    Thank you.

    MIL OSI Economics –

  • MIL-Evening Report: The Coalition wants to increase Medicare psychology rebates from 10 to 20 sessions. Here’s what happened last time

    Source: The Conversation (Au and NZ) – By Joanne Enticott, Associate Professor, Monash Centre for Health Research and Implementation, Monash University

    Monkey Business Images/Shutterstock

    The most disadvantaged Australians have long experienced higher rates of mental illness than the broader population. But they also access fewer mental health services.

    Increasing everyone’s access to mental health care led to the creation of the Better Access initiative, which subsidised psychology sessions under Medicare. Officially called Better Access to Psychiatrists, Psychologists and General Practitioners through the Medicare Benefits Schedule, the Howard government launched the initiative in November 2006.

    During COVID, the former Morrison Coalition government temporarily expanded the yearly cap on the number of psychology sessions, from ten to 20. The Labor Albanese government reverted to ten sessions at the end of 2022.

    Now the Coalition says if elected at this year’s polls, it will take the number of sessions back to 20.

    But did capping sessions at 20 increase access to mental health care, especially for disadvantaged Australians? Or are there more effective ways to achieve this?

    How does it work?

    Australians can access up to ten rebated psychology sessions annually. Patients need to have a mental health treatment or management plan from their GP or psychiatrist.


    The Australian Psychological Society recommends consultation fees of around $311 for a standard 46- to 60-minute consultation.

    The typical Medicare rebate is $141.85 per session with a clinical psychologist and $96.65 with other registered psychologists. (All psychologists are university qualified mental health professionals, but clinical psychologists have more qualifications.)

    Psychologists can choose their own fees. They can bulk bill (no out of pocket cost for patients) or charge consultation fees, leaving some patients hundreds of dollars out of pocket for each session.

    How did access change during COVID?

    To assess the changes during COVID, we need to consider three components: number of people accessing services, service use rates (number of sessions per population) and the average number of sessions per patient.

    1. Number of people accessing services

    In 2020-21, all states saw a 5% jump in the number of people accessing Medicare mental health services, coinciding with the first year of the COVID pandemic.

    In the three years prior to this, there was an average yearly increase of about 3% more people.

    However, a 2022 independent evaluation of the Better Access initiative showed that between 2018 and 2021, new users declined from 56% to 50%, with the steepest drop between 2020 and 2021.

    This reduction in new users coincided with the temporary increased cap to 20 sessions.

    Australians from disadvantaged backgrounds continued to have poorer access to psychologists than those from wealthier population groups, despite an increase in the number of sessions.

    2. Service use rates (number of sessions per population)

    Service use rates tell us how much a particular service is being used each year. To compare service use rates between different years, and because the Australian population is growing yearly, we report service use rates per 1,000 people in the population.

    In 2020-21, service use rates for clinical psychologists and other psychologists increased by 18%. This was a large increase compared to the typical 5% increases in previous years. This persisted in the next two years.

    When the cap on number of sessions was reduced to ten sessions, there was a small drop in service use rates, but it didn’t return to the pre-pandemic levels.

    Most clients use ten or fewer sessions a year.
    Ben Bryant/Shutterstock

    3. Average number of sessions people used

    The increase in services occurring in the first two years of the COVID pandemic (and around the time as the cap temporarily increased from ten to 20 sessions), resulted in a small increase in the average number of sessions per patient.

    In the ten years between 2013-14 and 2022-23, average number of sessions with a clinical psychologist increased from five to six sessions whereas the average number of sessions with other psychologists increased from four to five sessions.

    Importantly, more than 80% of people received fewer than ten sessions.

    What does this tell us?

    Overall, most people used ten or fewer sessions, even when up to 20 sessions were available.

    Some extra services were provided to existing clients during COVID and this may have actually prevented new people from receiving services.

    So the evidence suggests simply increasing the number of rebated psychology sessions from ten to 20 for everybody isn’t the most effective approach.

    What should Labor and the Coalition do instead?

    We don’t limit the number of chemotherapy sessions for cancer patients, so why do we cap evidence-based psychological treatments for mental illness?

    Instead of capping access to Medicare rebates for mental health care, access should be based on a person’s needs and treatment outcomes. The number of sessions should be determined collaboratively between the person and the provider, ensuring people receive the appropriate level of evidence-based care for their condition.

    Measure outcomes

    Currently in Australia for Medicare-funded mental health services, we only measure service activity. Patient outcomes are not collected, which hinders the development of value-based mental health care.

    Without collecting outcomes, current initiatives to address inequities are only partially informed and may not work as intended.

    We urgently need to establish a set of outcomes (patient-reported outcome measures and experience measures) through consensus with the community, providers, professional organisations and governments.

    Address affordability

    We should also address inequities, such as gap fees that act as barriers to accessing services.

    Greater rebates and bulk billing incentives for vulnerable people can assist those with less money.

    Offer other evidence-based support

    Evidence also suggests people with mild to moderate mental health problems can benefit from psychological and social supports provided by people who are non-health-care professionals, such as the Friendship Bench and digital mental health programs.

    We need to develop and invest in a range of services that cater to differing levels of need. This would ensure more specialised services are available for those with higher complexity or severity.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. The Coalition wants to increase Medicare psychology rebates from 10 to 20 sessions. Here’s what happened last time – https://theconversation.com/the-coalition-wants-to-increase-medicare-psychology-rebates-from-10-to-20-sessions-heres-what-happened-last-time-249606

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Europe: Isabel Schnabel: Financial literacy and monetary policy transmission

    Source: European Central Bank

    Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at the 2025 Mais Lecture at Bayes Business School

    London, 27 March 2025

    According to our latest public opinion survey, more than 90% of respondents are aware of the European Central Bank.[1][2] But when asked about our tasks, only 43% said they know that the ECB is responsible for maintaining price stability, despite inflation continuing to be the most important issue for European citizens.[3]

    These findings are part of a broader societal phenomenon: the widespread lack of financial literacy.

    Financial literacy is the ability to understand and apply basic financial concepts. It empowers individuals to make informed financial choices, mitigate investment risks and make provisions for old age.

    In my lecture today, I will argue that financial literacy also matters for the transmission of monetary policy. I will show that financially literate individuals react more strongly to interest rate changes, are more willing to take on risk and are more forward-looking when forming inflation expectations.

    Together, these factors suggest that greater financial literacy tends to strengthen the transmission of central bank policies to the real economy. Therefore, it can make monetary policy more effective in achieving its objectives and lower the sacrifice ratio – that is, the cost of reducing inflation in terms of lost output or higher unemployment.

    For this reason, central banks, including the ECB, have increased their efforts to foster financial literacy. Such initiatives strengthen trust in central banks and support broader policy goals, including progress on the European savings and investment union.

    Financial literacy varies widely across socio-economic groups

    In 2021 G20 finance ministers and central bank governors recognised financial literacy as an essential skill for empowering people and supporting individual and societal well-being.[4] It is defined as the ability to understand and effectively use basic financial concepts to take personal financial decisions.

    Such decisions are taken at various stages of life. People have to decide how much of their income they want to spend and to save, how to best invest their savings, how to finance big purchases like an apartment or a house, and how to make provisions for old age or emergencies. This requires an understanding of how interest rates and inflation affect the return on various financial products and the cost of borrowing.

    The sharp economic fluctuations over the past few years have underscored how important financial literacy is for the well-being of households. The surge in inflation in the aftermath of the pandemic and the sharp rise in interest rates after a decade of low rates have highlighted the need for individuals to properly understand and react to a changing inflation and interest rate environment.

    Economists Annamaria Lusardi and Olivia Mitchell developed the “Big Three” financial literacy questions, which have become a widely used measure of financial literacy (Slides 2 to 4).[5]

    These questions assess basic knowledge in three areas that are of key importance for households’ financial decision-making: the concept of compound interest, the importance of inflation for the purchasing power of savings, and the benefits of diversifying a portfolio across different assets.[6] People are usually considered to be financially literate if they can answer all these three questions correctly.

    Numerous surveys collect information about the level of financial literacy across various countries and socio-economic groups, and the ECB has contributed to this effort by including questions on financial literacy in its consumer expectations survey.

    These surveys show that many people struggle to answer all three questions correctly. In the euro area, less than half of respondents, around 48%, managed to get all three questions right (Slide 5).

    Moreover, financial literacy varies widely across socio-economic groups.

    First, financial literacy is lower for younger people. Those aged below 50 display below-average financial literacy, which could negatively affect their ability to build up long-term wealth or their decisions about major purchases.[7]

    Second, women have on average significantly lower financial literacy than men. This could lead to a higher risk of financial hardship and could explain why women are more often at risk of old-age poverty.[8]

    Third, financial literacy increases with educational attainment and income, potentially reinforcing inequality as, on average, financially literate people take better financial decisions.[9]

    Finally, there is considerable variation across countries, also within the euro area. Financial literacy tends to be higher in northern European countries.

    Financial literacy matters for monetary policy transmission

    These differences have important implications for individuals, but they may also have an impact on the effectiveness of macroeconomic policies.

    Monetary policy is a case in point. The effectiveness of monetary policy relies on the smooth transmission of policy decisions – especially changes to key policy rates – to financing conditions and, from there, to economic activity and inflation.

    Today I will focus on three key channels through which financial literacy can influence the transmission of our monetary policy: the interest rate channel, the risk-taking channel and the inflation expectations channel.[10]

    Financially literate households react more strongly to interest rate changes

    In standard macroeconomic models, monetary policy works mainly through the interest rate channel: an increase in interest rates shifts intertemporal trade-offs in the direction of higher savings and less consumption due to a substitution effect. Higher interest rates dissuade firms from investing and households from purchasing houses or durable goods.

    Policymakers frequently use these models to derive policy prescriptions, thereby implicitly assuming that households react in an optimal way to changes in interest rates by adjusting their borrowing and saving.

    However, a lack of financial literacy in part of society could be one reason that not all people behave in the way that models with rational expectations assume. Consequently, policymakers may make mistakes in predicting household behaviour, affecting the way monetary policy is transmitted to the real economy.[11]

    For example, survey evidence suggests that financially literate households are more responsive to changes in interest rates.

    On the one hand, this reflects the fact that these households are more attentive to interest rate developments. Among financially literate households, 62% report paying “some”, “much” or “a great deal” of attention to the level of interest rates. For households with low financial literacy, this share is only 49% (Slide 6).[12]

    On the other hand, a financially literate person has a better understanding of how interest rate changes will affect their financial situation and how they should best respond.

    The experience of recent years is a good example. When the ECB raised its policy rates in 2022 to fight inflation, financially literate individuals understood that this created more beneficial conditions for saving and less attractive conditions for borrowing, strengthening policy transmission. By contrast, less financially literate people reacted much less strongly to the dramatic change in the interest rate environment (Slide 7).

    In other cases, the impact on transmission is less clear.

    Households with high levels of financial literacy preferred fixed-rate loans when interest rates were low, but less so when interest rates were high (Slide 8). This behaviour tends to slow down policy transmission, as it insulates these households from changes in the interest rate environment. By contrast, less financially literate households did not significantly adjust their preferences when interest rates increased sharply.[13]

    The financial literacy of borrowers and depositors may also affect how swiftly and strongly banks pass through changes in policy rates to financing conditions. This is a key step in monetary policy transmission.

    The more attentive households are to interest rates, the more likely they are to search for the best possible interest rate for both loans and deposits. Indeed, according to the consumer expectations survey, financially literate households are more likely to “shop around” for the best terms of debt products (Slide 9, left-hand side).

    The same is true for deposits. During the recent hiking cycle, banks had to increase deposit rates to prevent a deposit flight as depositors shifted from low-yielding deposits to higher-yielding investments.[14]

    Such behaviour is likely linked to financial literacy. In fact, during the recent tightening cycle, cash accounts of corporates, which are managed by finance professionals, received higher interest rates for both overnight and term deposits than those of households (Slide 9, right-hand side).

    Higher funding costs for banks then also translate into higher bank lending rates, strengthening the transmission of policy rates to financing conditions.

    Financial literacy increases risk-taking and stock market participation

    A second important transmission channel of monetary policy operates through investors’ risk appetite. This is the risk-taking channel.

    Monetary policy influences people’s willingness to take risks, with looser monetary policy being associated with greater risk-taking, as investors have an incentive to switch from safe assets to higher‑yielding alternatives.[15] Increased risk-taking, particularly through greater stock market participation, amplifies the aggregate effects of monetary policy adjustments.[16]

    Research indicates that financial literacy plays a crucial role in determining the extent to which households engage in risk-taking by investing in the stock market or other risk assets.[17] Financially literate households are much more likely to invest in stocks or mutual funds, thereby strengthening monetary policy transmission (Slide 10, left-hand side).

    Differences can also be found in the mortgage market.

    A higher share of financially literate households take out mortgages and other loans than is the case for households with low financial literacy, although the difference is quantitatively much smaller than for stocks (Slide 10, right-hand side). Changes in aggregate consumption in response to interest rate adjustments are to a large extent driven by households with mortgages.[18]

    Higher risk-taking may also affect monetary policy indirectly by mobilising private capital for riskier and more productive investments. More risk capital should lead to higher productivity growth and hence a higher natural interest rate, r-star, giving central banks greater scope to stimulate the economy through lower interest rates due to a greater distance to the zero lower bound.[19]

    The effects of higher risk-taking can be self-reinforcing. If a larger share of the population rebalances their portfolios by switching from savings products or bonds to stocks in response to looser monetary policy, this may encourage firms to make additional investments. The increase in investment leads to higher aggregate income, in turn leading to more investment in the stock market.[20] Through this channel, stock market participation can magnify the investment response to monetary policy shocks.[21]

    Wealth effects provide another amplifying channel, as looser monetary policy tends to go hand-in-hand with a better performance of riskier assets, increasing household wealth and fostering consumption, with important distributional consequences. However, as shown over the recent tightening cycle, asset prices may behave differently. Over this period, the dampening effect of higher rates on stock prices was more than offset by stronger risk sentiment, leading to a surge in stock prices. Such wealth effects weakened monetary policy transmission in the most recent hiking cycle.

    Lastly, financially literate households have been shown to be more likely to build up precautionary savings, making them better able to cope with financial shocks and smooth their consumption.[22] This may slow monetary transmission, as these households can initially draw on cash buffers when the cost of borrowing increases through policy tightening. Hence, the impact of financial literacy on risk-taking may also go in the opposite direction.

    Financially literate households are more forward-looking when forming inflation expectations

    A third key transmission channel of monetary policy is the inflation expectations channel.

    Since consumption and investment decisions as well as price and wage-setting processes reflect expectations about the future pace of price changes, household inflation expectations shape inflation dynamics. A growing body of research suggests that consumers’ expectations matter greatly for the transmission of monetary policy, possibly more than those of financial market participants.[23]

    Research by the International Monetary Fund shows that, over the recent inflation episode, near-term inflation expectations became an increasingly important driver of inflation in advanced economies (Slide 11, left-hand side).[24]

    In turn, factors that can reduce the sensitivity of inflation expectations to actual inflation developments can contribute to bringing inflation down more quickly. And the lower the sensitivity, the lower the sacrifice ratio, allowing for swift disinflation without causing high unemployment or a deep recession.

    It is therefore crucial that central banks understand how households form these expectations.

    Research shows that policy tightening has a stronger dampening effect on near-term inflation expectations and inflation when a greater share of people in the economy are forward-looking (Slide 11, right-hand side).[25]

    Forward-looking households form their expectations on the basis of a broader set of information, including central bank policies and their expected impact on the economy, while backward-looking households base their expectations to a larger degree on past inflation experience.

    Therefore, a higher share of backward-looking households means that the central bank must tighten monetary policy more to achieve the same drop in inflation.

    The degree to which households are forward-looking likely depends on their level of financial literacy.

    Survey evidence indicates that households with higher financial literacy pay more attention to inflation.

    52% of financially literate households pay “much” or “a great deal” of attention to inflation. This share stands at just 45% for the less financially literate (Slide 12, left-hand side). Higher attention also implies that these people are easier to reach through central bank communication.[26]

    However, these data also suggest that even for financially literate people, almost one half do not pay much attention to inflation. This may explain why inflation perceptions are often very persistent, adapting slowly to actual inflation dynamics. While headline inflation in the euro area dropped by almost 8 percentage points from its peak in October 2022 until the end of 2023, inflation perceptions fell by much less (Slide 12, right-hand side).

    Again, there is some difference of inflation perceptions across different levels of financial literacy: while the inflation perceptions of both groups were similar when inflation had reached its peak, those of financially literate people are now 1.6 percentage points lower than those of less financially literate people.

    Inflation expectations paint a similar picture. The one-year ahead inflation expectations of financially literate households have dropped much more quickly than those of the less financially literate (Slide 13, left-hand side).

    These two findings are linked and reflect the fact that individuals’ inflation perceptions have a substantial impact on their expectations of future inflation.[27]

    Overall, the share of consumers with inflation expectations broadly anchored around 2% – meaning that three-year inflation expectations are between 1.5% and 2.5% – has fluctuated around a level of only 17%, indicating a low degree of anchoring.

    Again, there are notable differences in inflation expectations linked to financial literacy. The share of consumers with medium-term inflation expectations anchored around 2% is significantly higher for financially literate households. However, these households have also been more responsive to actual inflation developments, with the share of consumers with medium-term inflation expectations around 2% declining more sharply when inflation surged and rising more strongly when it came down (Slide 13, right-hand side).[28]

    The observed differences in the formation of inflation expectations translate into lower deviations of individual one-year ahead forecasts from inflation perceptions at that time for more financially literate people, implying a lower subjective forecast error (Slide 14). In other words, households with higher levels of financial literacy tend to have more accurate inflation expectations.[29]

    Financial literacy also affects household perceptions of real, i.e. inflation-adjusted, incomes, with implications for monetary policy transmission. Over the past three years, real private consumption has increased more slowly than real disposable income. This can be partly explained by household misperceptions of their real income developments.[30]

    While over 50% of households in the euro area experienced positive real income growth in 2024, only 11% perceived that their real income had increased (Slide 15, left-hand side). The net percentage of pessimistic households is highest for the bottom half of the income distribution, and it is also higher for households with low financial literacy (Slide 15, right-hand side).

    This implies that lower inflation due to restrictive monetary policy generally had a weaker impact on consumption due to such misperceptions, dampening the recovery.

    The need for enhanced financial education initiatives

    The evidence presented explains why central banks have a keen interest in promoting financial literacy and improving financial knowledge.

    In our 2021 monetary policy strategy review, we acknowledged that communication to broader audiences is key for monetary policy. That is why we have put more emphasis on explaining our monetary policy decisions to the general public in an accessible way.[31]

    Since President Lagarde took office, the Governing Council has made significant progress in making communication more accessible. For example, the introductory statement to the press conference after our monetary policy decisions has been replaced with the monetary policy statement, which offers a more concise and compelling narrative, while significantly reducing the textual complexity of monetary policy announcements, thereby increasing readability (Slide 16). To reach audiences beyond experts, the statement has been complemented by highly accessible, visualised statements, available in all EU languages.[32]

    When people understand how monetary policy works, they tend to trust central banks more.[33] And people’s trust in the central bank and in its ability to maintain price stability has been shown to help anchor inflation expectations and increase the share of forward-looking people in the economy.[34]

    Knowledge about the ECB is linked to financial literacy. Financially literate households tend to be significantly more knowledgeable about the ECB and its inflation objective (Slide 17).

    This has implications for the ECB’s credibility. In the most recent inflationary episode, the share of households with high financial literacy that trusted the ECB to maintain price stability over the next three years rose notably after the ECB had embarked on its hiking cycle and inflation had come down significantly (Slide 18).

    By contrast, households with low financial literacy lost confidence in the ECB’s ability to maintain price stability as interest rates rose. Even when inflation had already come down significantly, the share of households that trusted the ECB’s ability to maintain price stability remained low. This is in line with recent evidence from the United States, where 60% of survey respondents believe that high interest rates cause high inflation.[35]

    Therefore, to maintain and improve their credibility, central banks should help people understand their policy actions and their economic effects through communication and enhance their efforts to improve financial literacy.[36]

    At the ECB, we are taking active steps to do this. We have expanded our communication efforts towards the general public by offering explainers on YouTube (through our “Espresso Economics” channel), by speaking more frequently on TV, by engaging on social media and by producing regular podcasts.

    Earlier this month, on International Women’s Day, the ECB took another step in promoting financial literacy by committing to five joint actions with national central banks, also aimed at closing the gender gap in financial literacy.[37]

    These include raising awareness, establishing a central bank financial literacy network, collaborating with national authorities for consumer protection, developing a harmonised financial literacy dataset across Europe, and focusing communication efforts on key moments in life, such as early education, taking out a major loan or building a pension.

    Of course, such efforts can only complement, not replace, much broader efforts needed from governments and the education system. And it requires a long-term effort, with progress likely to be incremental.

    Financial literacy is also an important cornerstone of the savings and investment union, one of the European Commission’s flagship projects.[38]

    Under its first pillar, it aims to encourage citizens to invest in capital markets, which can contribute to financing part of the massive investments needed for the green and digital transitions.[39] As I said before, financial literacy increases the willingness to make such investments. Therefore, an improvement in financial literacy is seen as essential to achieving the stated objectives. That is why the European Commission will adopt a financial literacy strategy, in line with the ECB’s efforts.

    Conclusion

    Let me conclude.

    Financial literacy is an essential life skill that not only empowers individuals to make informed financial decisions but can also make monetary policy more effective.

    Financially literate individuals respond more strongly to interest rate changes, are more willing to take on risk and are more forward-looking when forming inflation expectations. This tends to strengthen the transmission of central bank policies to the real economy.

    However, significant differences in financial literacy across socio-economic groups highlight the need for continued educational initiatives.

    Fostering financial literacy can support policy effectiveness, enhance public trust in central banks and help people make better financial decisions, ultimately contributing to a stronger economy and individual well-being.

    As Benjamin Franklin, who spent more than 16 years here in London, once said, “an investment in knowledge pays the best interest.”

    Thank you.

    MIL OSI Europe News –

  • MIL-OSI Global: Energy bills and debt are rising yet again – here are three things that would help vulnerable households

    Source: The Conversation – UK – By Elaine Robinson, Research Associate, Centre for Research in Social Policy, Loughborough University

    Energy prices are rising faster than benefits, wages or pensions, meaning the amount that UK households owe to energy suppliers – their energy debt – is also likely to grow.

    On April 1 2025, the energy price cap, which is the maximum amount suppliers can charge, will rise by 6.4%. This is the third consecutive quarterly increase, and a rise of 9.4% compared with the limit set the previous April, which amounts to an increase of £159 on the typical bill.

    Meanwhile, benefits such as universal credit are being increased by only 1.7%, which will mean those on low incomes will find it challenging to pay for the energy they need. The increase is so low because, every April, benefits rise in line with the rate of overall inflation for the previous September.

    State pension increases have outpaced increases to working age benefits due to “the triple lock”, which ensures annual increases are pegged to the highest of earnings growth, inflation or 2.5%. Nonetheless, the state pension is set to rise by only 4.1%.

    Combined with the loss of the winter fuel payment (at least £200 a year) for all but the poorest pensioner households, the price cap rise will especially hurt those who are just above the threshold to receive pension credit.

    People in low-paid work will fare slightly better. But still, the minimum wage rise of 6.7% for those over 21 in April 2025 will not keep pace with the 9.4% annual increase in energy prices. Essentials, such as energy, make up a greater proportion of spending for low-income households, so these price rises will have a greater impact here.

    Energy debt highest since 2012

    Energy regulator Ofgem reported those in arrears (without a repayment plan) owed an average of £1,568 for electricity and £1,324 for gas at the end of September 2024, an annual increase of 33% and 85% higher than debt levels in September 2021.

    Even for those on repayment plans, debt remains high, having risen by two-thirds since the start of 2022. Record levels of energy debt – the highest since records began in 2012 – are inflating bills for all consumers, as energy providers seek to recover the cost of debt. This situation looks set to worsen, given that this data precedes price rises since October 2024.

    Moving to a fixed rate or cheaper tariff with another supplier is not possible for those with more than 28 days unpaid energy bill debt. Households at risk of going into debt also tend to ration their energy use or self-disconnect. But living in a cold home risks damp and mould, which has severe health consequences.

    Available help is not enough

    The government is expanding the warm home discount scheme to make more households eligible for an annual payment of £150, but it is unclear at this stage who will benefit. The payment may not be enough, since price cap changes mean that from April 2025, average annual bills will be £159 more expensive. Crucially, energy debt repayments are not reflected in the government’s fuel poverty calculations.

    The government urgently needs to introduce an effective debt relief scheme.

    Ofgem has acknowledged that energy is essential for everyone and that disconnection has harmful consequences. It also recognises energy market failures prevent those with small debts from accessing better deals. The regulator recommends a debt relief fund of up to £1 billion to help vulnerable households that have been affected by the energy crisis and for suppliers to adopt consistent standards in handling and preventing debt.

    Here’s are three ways the government can protect vulnerable households.

    1. Store more energy

    Renewable energy sources like wind and solar are intermittent, so demand won’t always match supply. In a marketised energy system, that means prices will be more volatile. However, a leading cause of high bills in the last few years has been the fact that Britain’s privatised system sets electricity bills according to the wholesale price of gas, which is often the most expensive energy source.

    If the UK can create more energy storage options (such as batteries, pumped hydro and thermal storage), the grid can store excess green energy when it is abundant to use when it is needed. This would reduce price volatility and reliance on expensive gas.



    Read more:
    How gas keeps the UK’s electricity bills so high – despite lots of cheap wind power

    2. Insulate homes

    Home improvements such as insulation and draught-proofing can help people spend less on energy for heating, which accounts for most of the cost of domestic energy bills. This needs to be combined with adequate ventilation to prevent damp and mould.

    3. Cover medical energy costs

    Since late 2024, energy pricing reform has permitted tariffs without a standing charge. This is an amount you pay on your energy bill every day, regardless of whether you use any energy. The change will benefit those who spend the least on energy. However, it won’t help people whose energy needs are higher due to health conditions, or who spend more time at home.

    Older people, the disabled and those who are terminally ill will need more help, as highlighted by research I led on fuel poverty in the last year of life. Living in a cold home can exacerbate health conditions and cut lives short.

    People who are dying are more vulnerable to cold and may need to use more electricity for medical equipment. Our research found that they are more likely to be in fuel poverty. For the terminally ill, home energy-efficiency improvements take time that they don’t have. Getting work done is disruptive. What these people urgently need is help with their bills.

    End-of-life charity Marie Curie is campaigning for a social tariff which would provide cheaper energy for those who are terminally ill. It has asked the government for additional help to cover the energy costs of medical equipment, so that vulnerable people don’t fall into energy debt.

    Incomes are failing to keep pace with rising energy prices and existing schemes to help those on low incomes fall well short. This will push more people into hardship. The government must put the needs of the most vulnerable first.

    Don’t have time to read about climate change as much as you’d like?

    Get a weekly roundup in your inbox instead. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed so far.

    Elaine Robinson is a member of the Labour Party. She has received funding from Marie Curie.

    – ref. Energy bills and debt are rising yet again – here are three things that would help vulnerable households – https://theconversation.com/energy-bills-and-debt-are-rising-yet-again-here-are-three-things-that-would-help-vulnerable-households-252570

    MIL OSI – Global Reports –

  • MIL-OSI Global: The anti-Andrew Tate: how youth workers can counteract the impact of masculinity influencers

    Source: The Conversation – UK – By Amanda Dylina Morse, Research Fellow, Queen’s University Belfast

    defotoberg/Shutterstock

    Andrew Tate – online content creator, podcaster, former kickboxer, and subject of ongoing human trafficking investigations – has gained widespread influence with millions of men and boys. Tate promotes financial independence, being “mentally and physically strong,” and being successful with women, interspersed with (sometimes violent) misogyny.

    For my PhD research, I worked with 30 boys and young men aged between 16 and 19 from working-class backgrounds in Belfast, researching on the role of social connection to protect mental health. In the interviews I carried out, Tate’s name came up constantly.

    I found that almost all the participants had positive or mixed feelings about him. Even those less certain of him appreciated his financial advice or advocacy for men’s mental health. While other masculinity influencers were also mentioned, none achieved the same level of importance.

    But I also found that youth workers emerged as powerful counters, acting as “anti-Andrew Tate” figures and providing a positive example of manhood. This shows that, while the influence of online figures may seem unstoppable, we already have role models in our communities who can demonstrate an alternative version of what a man can be and how he should act with others.

    Looking for connection

    In their interviews, the young men spoke passionately about their enthusiasm for Andrew Tate and valued his advocacy for “traditional” manhood, including the classical ideal of a “strong mind in a strong body”. While none of the boys and young men endorsed Tate’s misogyny, they struggled to balance their discomfort with calling women property against his perceived valuable messages.

    I agree with some of the stuff he says, but not everything he says. So, with some of the stuff he says about men’s mental health, if you go to the gym, it can help, and eat well, that… all the stuff around men’s mental health, I believe in. But just some of the stuff he says about women being property and stuff like that, I don’t really properly agree with.

    The boys and young men drew a parallel between Tate’s childhood poverty and their own. They sometimes assigned Tate unexpectedly altruistic intentions in his targeting of young men desperate to attain financial security.

    All the controversial things that he says, I think he only said that to get himself a platform, so people would tune into him… More and more people listen to him. And he’s making more and more money. And he’s like, putting that money into his university, trying to help more people and then he promotes mental health and all. I think it’s brilliant like.

    Most of the people in my research had histories of substance use and violence at the boundaries between Catholic and Protestant neighbourhoods from a young age. For them, these challenging experiences were their entry into the youth work organisations which mentored them to build skills in emotional literacy, forecast the consequences of unsafe or unhealthy behaviour, and build community cohesion through acts of service.

    Relatable and non-judgmental

    For the boys and young men I worked with, their youth workers were like them – working-class men from their own communities with shared experiences of socioeconomic deprivation, exposure to paramilitary violence, and early substance use. Those parallels made them trustworthy and relatable.

    Youth workers can provide a non-judgmental listening ear.
    ingkaninant/Shutterstock

    The youth workers offered a confidential, nonjudgmental ear for their mentees, without the same risk of consequences for bad behaviour. For instance, telling a youth worker about having used drugs at the weekend wouldn’t lead to the lecture or loss of privileges that telling a parent or teacher might.

    I just think that, you know, at a young age, it’s important, em, young men get to know that there is that supportive people that can turn to even if they haven’t got, you know, a lot of friends or any friends. But I just think that, you know, like, I’ve got the opportunity of the youth club and the youth groups.

    In contrast to the version of masculine success Tate presents, youth workers usually had a home in the neighbourhood, played sports recreationally, and were establishing their families through marriage and having children. My study participants admired the stability their youth workers demonstrated in this more attainable – but still aspirational – version of adult manhood.

    When asked what kind of man they wanted to be as an adult, most of them described the sort of success their youth workers had achieved, rather than a version closer to Tate’s.

    The boys and young men I worked with said that youth service organisations were supportive spaces. They credited them with both improvements to their mental health and with giving them strategies to avoid engagement in sectarian violence. Some participants were so moved by their engagement with youth workers that they were themselves training in the profession.

    Despite strong evidence for their value, youth services are consistently underfunded. But they represent an opportunity to invest in the health of both young men and their communities.

    Amanda Dylina Morse does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. The anti-Andrew Tate: how youth workers can counteract the impact of masculinity influencers – https://theconversation.com/the-anti-andrew-tate-how-youth-workers-can-counteract-the-impact-of-masculinity-influencers-252786

    MIL OSI – Global Reports –

  • MIL-OSI Global: The anti-Andrew Tate: how youth workers can counteract the influence of masculinity influencers

    Source: The Conversation – UK – By Amanda Dylina Morse, Research Fellow, Queen’s University Belfast

    defotoberg/Shutterstock

    Andrew Tate – online content creator, podcaster, former kickboxer, and subject of ongoing human trafficking investigations – has gained widespread influence with millions of men and boys. Tate promotes financial independence, being “mentally and physically strong,” and being successful with women, interspersed with (sometimes violent) misogyny.

    For my PhD research, I worked with 30 boys and young men aged between 16 and 19 from working-class backgrounds in Belfast, researching on the role of social connection to protect mental health. In the interviews I carried out, Tate’s name came up constantly.

    I found that almost all the participants had positive or mixed feelings about him. Even those less certain of him appreciated his financial advice or advocacy for men’s mental health. While other masculinity influencers were also mentioned, none achieved the same level of importance.

    But I also found that youth workers emerged as powerful counters, acting as “anti-Andrew Tate” figures and providing a positive example of manhood. This shows that, while the influence of online figures may seem unstoppable, we already have role models in our communities who can demonstrate an alternative version of what a man can be and how he should act with others.

    Looking for connection

    In their interviews, the young men spoke passionately about their enthusiasm for Andrew Tate and valued his advocacy for “traditional” manhood, including the classical ideal of a “strong mind in a strong body”. While none of the boys and young men endorsed Tate’s misogyny, they struggled to balance their discomfort with calling women property against his perceived valuable messages.

    I agree with some of the stuff he says, but not everything he says. So, with some of the stuff he says about men’s mental health, if you go to the gym, it can help, and eat well, that… all the stuff around men’s mental health, I believe in. But just some of the stuff he says about women being property and stuff like that, I don’t really properly agree with.

    The boys and young men drew a parallel between Tate’s childhood poverty and their own. They sometimes assigned Tate unexpectedly altruistic intentions in his targeting of young men desperate to attain financial security.

    All the controversial things that he says, I think he only said that to get himself a platform, so people would tune into him… More and more people listen to him. And he’s making more and more money. And he’s like, putting that money into his university, trying to help more people and then he promotes mental health and all. I think it’s brilliant like.

    Most of the people in my research had histories of substance use and violence at the boundaries between Catholic and Protestant neighbourhoods from a young age. For them, these challenging experiences were their entry into the youth work organisations which mentored them to build skills in emotional literacy, forecast the consequences of unsafe or unhealthy behaviour, and build community cohesion through acts of service.

    Relatable and non-judgmental

    For the boys and young men I worked with, their youth workers were like them – working-class men from their own communities with shared experiences of socioeconomic deprivation, exposure to paramilitary violence, and early substance use. Those parallels made them trustworthy and relatable.

    Youth workers can provide a non-judgmental listening ear.
    ingkaninant/Shutterstock

    The youth workers offered a confidential, nonjudgmental ear for their mentees, without the same risk of consequences for bad behaviour. For instance, telling a youth worker about having used drugs at the weekend wouldn’t lead to the lecture or loss of privileges that telling a parent or teacher might.

    I just think that, you know, at a young age, it’s important, em, young men get to know that there is that supportive people that can turn to even if they haven’t got, you know, a lot of friends or any friends. But I just think that, you know, like, I’ve got the opportunity of the youth club and the youth groups.

    In contrast to the version of masculine success Tate presents, youth workers usually had a home in the neighbourhood, played sports recreationally, and were establishing their families through marriage and having children. My study participants admired the stability their youth workers demonstrated in this more attainable – but still aspirational – version of adult manhood.

    When asked what kind of man they wanted to be as an adult, most of them described the sort of success their youth workers had achieved, rather than a version closer to Tate’s.

    The boys and young men I worked with said that youth service organisations were supportive spaces. They credited them with both improvements to their mental health and with giving them strategies to avoid engagement in sectarian violence. Some participants were so moved by their engagement with youth workers that they were themselves training in the profession.

    Despite strong evidence for their value, youth services are consistently underfunded. But they represent an opportunity to invest in the health of both young men and their communities.

    Amanda Dylina Morse does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. The anti-Andrew Tate: how youth workers can counteract the influence of masculinity influencers – https://theconversation.com/the-anti-andrew-tate-how-youth-workers-can-counteract-the-influence-of-masculinity-influencers-252786

    MIL OSI – Global Reports –

  • MIL-OSI United Kingdom: Emergency fund launches to support the city’s third sector ahead of longer-term review

    Source: Scotland – City of Edinburgh

    Charities due to lose funding from the Edinburgh Integration Joint Board (EIJB) will be able to apply for emergency support from the City of Edinburgh Council.

    A one-off Third Sector Resilience Fund will launch tomorrow (Friday 28 March) and will remain open for two weeks. It will only be open to organisations in Edinburgh directly impacted by the closure of the EIJB’s third sector grants programme and applications must be made by 12 noon on Friday 11 April.

    This package of support will include a funded programme worth £1m to allow third sector advice providers to continue to offer income maximisation, debt, and welfare advice services previously funded by the EIJB grants programme.

    Applications will be reviewed and reported to a special meeting of the Policy and Sustainability Committee on Monday 12 May, with the intention of releasing funds in June.

    Further work is progressing to review the relationship between the public sector and third sector in Edinburgh, to improve funding certainty in future years.

    Council Leader, Jane Meagher, said:

    Many of these local charities are at the forefront of helping those in our city with the greatest need. We’ve urgently been working to provide a lifeline to those affected by the closure of the previous grants programme, and I’m really pleased that we’ve found a way forward.

    This fund should provide enough money to potentially support all 64 affected organisations for up to nine months. It must be said that this is a one-off emergency fund – we need to act quickly, and I urge applications to be made as soon as possible.

    Alongside this we must develop a stronger way of supporting the third sector in our city. We recognise that the EIJB, like the Council, is under significant financial pressure and there needs to be longer-term change.

    Tackling poverty and inequality is one of the biggest challenges we’ve set ourselves as a city and this will be a really important piece of work – for us, for our partners and for the whole third sector.

    Benjamin Napier, CEO of Citizens Advice Edinburgh, is a member of the third sector reference group which the Council has set up as it reviews the funding relationship the city has with charities.

    He said:

    We welcome this investment in the third sector and hope it will go some way to providing resilience, while we continue our work with colleagues across the Council to find a longer-term solution.

    We recognise the pressures on public funding and thank the Council for their efforts in securing this funding. The third sector in Edinburgh plays a vital and very cost-effective role in supporting some of the most vulnerable people in our communities.

    We look forward to strengthening the relationship between the Council and the third sector. By working together in this way, we can create real and lasting change for our citizens.

    The City of Edinburgh Council Third Sector Resilience Fund is a short term, one off, draw down resource using reserves agreed for use during 2025/26.

    The fund aims to:

    • Provide financial support in 2025/26 for Edinburgh based third sector organisations significantly impacted by the closure of the EIJB Grants Programme
    • Ensure that the closure of the EIJB Grants Programme does not affect, disrupt, or delay the delivery of other grant funded or commissioned projects and services in the city during 2025/26.

    Towards these aims:

    • The funding is for the period 1 July 2025 to 31 March 2026, whilst the wider review of the Council’s approach to supporting the third sector in Edinburgh is undertaken during 2025/26
    • Is intended to ensure the viability and survival of the third sector organisations whilst a new sustainable long-term approach, aligned with the Council’s Business Plan priorities, is developed for implementation from 2026/27 onwards
    • Not intended to provide costs associated with closure of an organisation because of the loss of EIJB grant funding, and
    • Not intended to be used for delivery of any specific projects or services that would be the direct function of the EIJB(noting that this fund will provide resilience until such time as the EIJB’s Strategic Plan is published and any future procurement processes are confirmed and made available to the 3rd sector).

    Please email policyandinsight@edinburgh.gov.uk for the full criteria for the fund and to apply.

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Child poverty in Scotland falls

    Source: Scottish Government

    UK Government decisions ‘hold back further progress’.

    New statistics show that child poverty in Scotland has fallen, in contrast to the rest of the UK.

    Annual statistics published today show that compared with the previous year’s statistics, relative child poverty in 2023-24 reduced from 26% to 22% in Scotland while absolute child poverty fell from 23% to 17%. UK Poverty statistics published today show levels of relative child poverty at 31% and absolute child poverty at 26%.

    Modelling published today suggests that UK Government policies are “holding back” Scotland’s progress. It estimates the UK Government could reduce relative child poverty by an additional 100,000 children in 2025-26 if it heeded Scottish Government calls to end the two child limit, replicate the Scottish Child Payment in Universal Credit, remove the benefit cap and introduce an essentials guarantee.

    This model does not take into account the UK Government’s own impact assessment of its welfare cuts announced yesterday , which states that they will leave an additional 250,000 people, including 50,000 children, in poverty.

    Social Justice Secretary Shirley-Anne Somerville said:

    “Eradicating child poverty is the Scottish Government’s top priority and we are committed to meeting the 2030 targets unanimously agreed by the Scottish Parliament.

    “Our policies are having to work harder than ever to make a difference, against a backdrop of a continuing cost of living crisis, rising energy costs and UK Government decision making. However, we know these policies are working.

    “Statistics published today show that, although we have not met the interim child poverty targets, the proportion of children living in relative poverty has reduced and year-on-year rates are now lower than they have been since 2014-15, while the proportion in absolute poverty has also fallen with the annual figure the lowest in 30 years.

    “While JRF predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, ‘are behind Scotland bucking the trend’.

    “But decisions taken by the UK Government are holding us back, and yesterday’s Spring statement will only make things worse. The DWP’s own figures show that proposed welfare cuts will drive 50,000 more children into poverty, which must call into question their commitment to tackling child poverty. I have already written to Work and Pensions Secretary Liz Kendall to seek reassurance about the purpose and direction of the UK Government’s Child Poverty Taskforce. The Taskforce’s credibility has been drastically undermined by the policies announced by the UKG in the past few days.”

    Background:

    Poverty levels broadly stable over last decade

    Child poverty modelling: update

     Covering the period until March 2024, child poverty after housing costs (AHC) has been consistently lower in Scotland compared to the UK overall over the last two decades.

    • Three-year averages

    The latest statistics show that relative child poverty levels in Scotland are six percentage points lower than the UK average – 23% compared to 30% in 2021-24 (31% England, 31% Wales and 24% NI). 

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: UK Statement: WTO Trade Policy Review of Cambodia

    Source: United Kingdom – Executive Government & Departments

    World news story

    UK Statement: WTO Trade Policy Review of Cambodia

    UK Statement for the 3rd Trade Policy Review of Cambodia. Delivered on 26th & 28th March 2025.

    Chair, let me warmly welcome the delegation, led by Minister of Commerce Mrs Cham Nimul, to their 3rd Trade Policy Review. Let me also express my gratitude to the government of Cambodia and to the WTO Secretariat for their Reports, to you Chair and to Ambassador James Baxter as discussant, for facilitating this Review with your insightful comments.

    Bilateral Relationship

    1. The UK and Cambodia enjoy long-standing and positive relations, with our diplomatic relationship dating back to 1953. In recent decades, the UK has been a considerable investor into Cambodia’s real estate and manufacturing industries, while supporting new approaches to developing Cambodia’s infrastructure to increase confidence in its investment potential is at the heart of our recent engagement. The UK’s development finance institution, British International Investment, has also focussed on renewable energy and climate financing in Cambodia.

    2. 2024 was a particularly positive year for the UK-Cambodia trade and investment partnership. In June we welcomed the first official Cambodian trade and investment mission to the UK, including Senior Minister for Trade and Investment Sok Siphana meeting the UK-ASEAN Business Council. In November, the Cambodia-UK business roundtable was attended by Deputy Prime Minister Sun Chantol, and the second annual UK-Cambodia Joint Trade and Investment Forum took place.

    3. The Joint Forum’s theme was the ‘Road to 2030’ and pathways to mutual growth, drawing on both parties’ experience and expertise. We agreed focus areas, including tax predictability, double taxation, and developing domestic capital markets. We look forward to the third meeting of the Forum later this year.

    4. I mentioned infrastructure investment. On this we hope a UK Export Finance Memorandum of Understanding to promote infrastructure development will help unlock up to £2bn in finance. We are also pleased the UK’s Private Infrastructure Development Group (PIDG), which coordinates investments for sustainable economic development and poverty reduction, has several projects in Cambodia, and a strategic partnership with the Cambodian Credit Guarantee Corporation.

    UK-Cambodia Development Relationship

    1. The UK has also aimed to be a reliable partner to Cambodia through wider development programmes, including UK bilateral  ODA  funding, to support Cambodia’s economic development, enhance trade and investment, and cooperate in areas offering longer-term resilience and growth, including encouraging green and inclusive growth.

    2. Our trade for development tools include ensuring Cambodian exporters can take advantage of comprehensive preferences under the UK Developing Countries Trading Scheme (DCTS). The UK also partners the Cambodian Ministry of Economy on the development of a Green Special Economic Zone and supports for agricultural SMEs.

    3. With all these initiatives in mind, we were also pleased to see confirmation last year of the UN recommendation for Cambodia to graduate from LDC status in 2029.

    Report Analysis

    The Trade Policy Review illustrates Cambodia’s significant economic policy progress during the reporting period, including the role of trade in Cambodia achieving GDP growth as high as 6% in 2024, and annual increases in the value of merchandise exports. This is impressive progress, and among other achievements is testament to Cambodia’s ability to respond to the economic impacts of the COVID-19 pandemic.

    WTO and Regional Engagement

    1. As well as national achievements, we welcome Cambodia’s active international engagement. This includes regional trade agreements like the Regional Comprehensive Economic Partnership and wider ASEAN economic initiatives. Here at the WTO we welcome Cambodia’s constructive and thoughtful approaches in a wide range of WTO business. We pay tribute to the Cambodia Permanent Representative, Ambassador Suon Prasith, and his team for their efforts in this regard.

    2. Recent examples of this include Cambodia’s active voice as a LDC focal point on dispute settlement reform. As co-convenor of work on accessibility the UK particularly welcomed Cambodia’s role in this regard. We have also appreciated Cambodia’s informed participation as Member of the Enhanced Integrated Framework (EIF) Board, including drawing insights from its own national use of EIF funding in sectors such as rice and silk.

    3. On WTO agreements, we welcomed Cambodia’s acceptance of the 2022 Agreement on Fisheries Subsidies in 2024, and are especially grateful for Cambodia’s active role in discussions to achieve incorporation of the Investment Facilitation for Development Agreement soon.

    4. In other areas, we encourage Cambodia to consider joining the Agreement on E-commerce and the Services Domestic Regulation initiative, both of which aim to break down barriers to cross-border trade in services and facilitate digital trade, which we believe would have significant benefits for Cambodia’s economic development.

    5. We are very interested to hear Cambodian views and any remaining concerns on these agreements, and look forward to continuing to work together in these and other areas. This also includes ongoing work on the additional fisheries subsidies agreement relating to overcapacity and overfishing where Cambodia’s continued insights and support would be welcome.

    6. Taking account of feedback from UK business, we also encourage Cambodia to increase momentum to achieving greater transparency in their customs valuation processes and regulations, including clearer processes for foreign business licensing, taxation, and land ownership.

    7. We also encourage Cambodia to accelerate efforts to establish stronger intellectual property protections, including enforcement of trademarks, copyrights and patent protections; and to pursue clear policies to strengthen regulatory frameworks in areas such as sustainable waste management, green investments, and emissions standards for automotive and construction industries.

    8. We also hope that Cambodia will continue to upskill their domestic workforce and implement stronger labour protections to meet increased economic demands, including after LDC graduation.

    9. Finally, Cambodia has made important efforts to advance women’s economic empowerment and strengthen gender equality, notably through its credit guarantee schemes and national strategy. On behalf of Ambassador Simon Manley, as co-chair of the Working Group on Trade and Gender, who due to other commitments could not be here in person today, we would also welcome Cambodia sharing its experiences at a forthcoming session of the Group.

    In closing, Chair, let me thank Cambodia for their report, for our wide cooperation bilaterally and here at the WTO. I again thank the delegation for its hard work and look forward to a productive Trade Policy Review.

    Updates to this page

    Published 27 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Poverty levels broadly stable over last decade

    Source: Scottish Government

    Latest Accredited Official Statistics and Official Statistics published

     The latest statistics cover the period up to March 2024 and three-year averages for levels of relative and absolute poverty show a broadly stable trend over the past decade for children, working age adults and pensioners.

    Three-year average results show that:

    • Working-age adults and pensioners are less likely to be in poverty compared to children: 20% of working-age adults and 15% of pensioners are in relative poverty after housing costs, compared to 23% of children.
    • Relative poverty has been broadly stable for most age groups. Adults under 25 are more likely to be in poverty than older adults.
    • Minority ethnic households are more likely to be in poverty compared to white British households. Muslim adults have higher rates of poverty compared to adults of Christian background and those with no religion. Some of this difference may be explained by Muslim households being younger.

    The publication also includes statistics for the measures in the Child Poverty (Scotland) Act 2017. These are based on single-year figures which tend to fluctuate year on year compared to three-year averages, which provide a better indication of trends.

    In 2023-24, rates of relative and absolute child poverty have reduced from the previous year to 22% and 17% respectively, with levels above the interim targets due in that year. Persistent poverty rates for children are relatively volatile over time, and the most recent estimate shows a marked increase (23%) to a level also higher than the interim target. The most recent combined low income and material deprivation estimate for 2023-24 is not comparable with earlier years as the material deprivation questions have been updated. The current figure of 9% is slightly above the interim target.

    Background

    The two full statistical publications are available here:

    Poverty and Income Inequality in Scotland contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes statistics on household food security. The data comes from the Department for Work and Pensions Family Resources Survey, Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.

    Figures are presented as three-year averages of each estimate. Three-year estimates best identify trends over time.

    The four child poverty measures in the Child Poverty (Scotland) Act are based on single-year figures.  These are available in the reference tables and in the child poverty summary.  

    Persistent Poverty in Scotland presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2018 to 2023.

    These poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.

    Official statistics are produced in accordance with the Code of Practice for Statistics.

    Key poverty measures:

    Relative poverty: A person is in relative poverty if their current household income is less than 60% of the current UK median. Relative poverty statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.

    Absolute poverty: A person is in absolute poverty if their current household income is less than 60% of the UK median in 2010/11, adjusted for inflation. Absolute poverty statistics fall if low income households are seeing their incomes rise faster than inflation.

    Combined low income and material deprivation identifies the number of children in families that cannot afford basic essential goods and services because of a low income (below 70 percent of the middle household income).

    Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years may be affected by it throughout their lifetime.

    Household income is adjusted for household size.

    The poverty publications present poverty figures before and after housing costs. Before housing costs figures are a basic measure of household income from earnings and benefits. After housing costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs. The poverty estimates in the child poverty summary refer to relative poverty after housing costs.

    Interim child poverty targets 2023-24

    The interim child poverty targets were as follows:

    Relative poverty: less than 18%

    Absolute poverty: less than 14%

    Combined low income and material deprivation: less than 8%

    Persistent poverty: less than 8%

    Further information on income and poverty statistics within Scotland is available.

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: University research a key enabler of the energy transition, Holyrood told Innovative approaches to helping Scotland secure long-term leadership in sustainable energy solutions and deliver an orderly energy transition were showcased by the University of Aberdeen at Holyrood last night.

    Source: University of Aberdeen

    Innovative approaches to helping Scotland secure long-term leadership in sustainable energy solutions and deliver an orderly energy transition were showcased by the University of Aberdeen at Holyrood last night.

    An 80-strong audience of MSPs, policy makers, industry representatives and other stakeholders attended the University’s parliamentary event, entitled ‘Accelerating the Energy Transition in Scotland and Beyond’. 

    They heard how the University has for the past five decades been a trusted partner to government and industry, delivering independent, data-led, evidence-based research and training programmes to address the global energy challenges and advance Scotland’s net zero ambitions. 

    Professor John Underhill, the interdisciplinary director for energy transition, spoke about how the University’s world-leading research supports Scotland’s energy future by driving industrial decarbonisation, informing energy policy, managing offshore spatial pressures, and enhancing workforce skills to secure Scotland’s global leadership in the energy transition. 

    The reception, which was hosted by Kevin Stewart MSP, also gave politicians the opportunity to engage directly with the University’s leading experts and discuss opportunities for collaboration in areas such as offshore wind, carbon capture and storage, hydrogen, decommissioning, geothermal and delivering a just transition. 

    “All aspects of the energy system, from exploration and production to consumption and decommissioning, must change. Our research seeks solutions to deliver a reliable, affordable, environmentally sustainable and climate compatible low-carbon energy system that ensures the transition is managed, orderly and just as we decarbonise and meet ambitious net zero targets,” said Professor Underhill. 

    “As parts of the world increasingly move towards renewable energy sources, the transition from oil and gas must be managed carefully to tackle fuel poverty and avoid imposing hardship yet ensure energy security. The transition strategy in Scotland will need to reassure communities about job security of those currently employed in the North Sea’s oil and gas industry while developing tangible new opportunities in renewable technologies. 

    “The challenge is inter and multi-disciplinary, and all aspects of the University’s research and training activity play a crucial role in providing solutions for low-carbon net-zero goals. For Net Zero to be successful it must obtain and retain public support, through continuous engagement, with people and places. Aberdeen is leading the way in the research needed to identify opportunities to accelerate decarbonisation and to design technically informed solutions that tackle societal challenges such as fuel poverty, sustainable local economies, wellbeing and social justice.” 

    Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “We are determined to ensure a successful energy transition for the North East and indeed for the whole of Scotland.
    “Our universities have an international reputation for excellence in research, and it’s clear from what we heard here tonight that the University of Aberdeen is at the forefront of accelerating the energy transition both here in Scotland and internationally. 
    “The Scottish Government is committed to continuing to work in partnership with universities, supporting and amplifying innovative research like this to help ensure a sustainable future for us all.”

    “There is a need to decarbonise and transform the UK’s and global energy systems to reduce emissions, achieve NetZero and climate targets,” added Principal Professor George Boyne. 

    “Academics, government and all sectors must continue to work together to map a just transition for energy global systems.  The University’s interdisciplinary approach is a key enabler for this work as energy transition spans all of our five interdisciplinary research challenge areas.” 

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: AberNecessities visit encourages partnership working

    Source: Scotland – City of Aberdeen

    A committee visit to local charity AberNecessities has highlighted the positive impact that partnership working between organisations can have on communities and service users.

    During the visit in January 2025, members of the Anti-Poverty and Inequality Committee met with Danielle Flecher-Horn, AberNecessities Founder and Michelle Herd, Co-Founder, and discussed a number of issues which have led to several actions being taken forward, some of which have already been completed.

    Issues discussed and some subsequent actions have included:

    • Supporting ways to improve access to infant formula milk
    • Improved access to life skills training for young people
    • Aiding wrap around support to prevent future need of foodbank dependency with the aim of stopping intergenerational poverty
    • Exploring the provision of community laundry facilities
    • Building on the success of the volunteer recruitment campaign for the Tall Ships Races 2025 to highlight the many other volunteering opportunities with organisations and charities across the city.

    Aberdeen City Council Co-Leader Councillor Christian Allard said: “Our committee visit to AberNecessities, along with our Committee’s External Advisors, allowed us to see the vital services they and their volunteers are providing for children and their families across the city.

    “I am encouraged by the lengthy discussions we had and the agreed actions that are taking place as a result of the visit and I look forward to continuing the joined-up working approach between organisations and our Council teams through these visits.”

    Anti-Poverty and Inequality Vice-Convener Councillor Desmond Bouse said: “Partnership working should be at the forefront of our common effort to address poverty and inequality across our city, and I’m delighted to see the many actions and issues that are now being addressed and taken forward as a result of our committee visit.”

    Danielle Flecher-Horn, founder of AberNecessities said “AberNecessities puts great value in partnership working. We have built wonderful relationships with many services across the local area including NHSG, education, social services and third sector organisations.

    “We thank the committee for taking the time to visit us and see the incredible effort our staff and volunteers put in every day to ensure that no child should go without. I look forward to moving forward with the committee in the hope that together, we can make a lasting, positive impact for local children and families.”

    AberNecessities provides disadvantaged families with essential and basic items so that no child goes without.  They recognise the importance of meeting the basic needs of a child in order to give them the best start possible.  The charity operates on a referral basis, receiving applications from a network of professionals across health, social care and education systems.

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Financial education and access to money advice services improved

    Source: Scotland – City of Aberdeen

    The Accessing Money Advice and Advisory Services questionnaire which returned 560 responses has helped identify areas where improvements can be made, with many of the recommendations having already been implemented.

    At Tuesday’s (25 March 2025) Anti-Poverty and Inequality Committee, members heard how the results highlighted the need for greater service availability, stronger collaboration between providers, and improved access to financial education resources.

    Improvement actions taken forward have included:

    • A series of SHMU Radio shows have been arranged to raise awareness of benefits, debt support and financial advice services available.
    • The Financial Inclusion Team have targeted benefit take-up using the Low-Income Family Tracker (LIFT).
    • A number of actions aimed at improving financial literacy have included ABZ Works, Adult Learning and Financial Inclusion Team working in partnership on various projects and financial education being provided by MyBnk.
    • Work is being undertaken through a Local Improvement Group project to simplify information, ensuring leaflets are easy read and available in multiple languages.
    • A new data project is being developed for Aberdeen City to connect individuals and families with essential support based on their needs.

    Aberdeen City Council Co-Leader Councillor Christian Allard said: “I’m pleased to see progress being made with vital improvements for accessing the money advice and advisory services.

    “Raising awareness of the services available and improving financial support and education for those most in need is crucial for tackling poverty across the city.”

    Anti-Poverty and Inequality Vice-Convener Councillor Desmond Bouse said: “Increasing collaboration and partnership working between all organisations involved with improving access to and awareness of the money advice services available is vital.

    “I’m encouraged to see the feedback from the questionnaire being taken forward and subsequent actions being implemented.”

    The committee also agreed to continue monitoring the impact of awareness campaigns along with partners in the Anti-Poverty Group. In addition, there will be expansion of the mobile outreach service, incorporating additional locations identified as high-need areas through the data collected.

    MIL OSI United Kingdom –

  • MIL-OSI Africa: SA-EU relations flourishing

    Source: South Africa News Agency

    By Nomonde Mnukwa

    South Africa’s first democratic elections on 27 April 1994 signalled not only the end of the brutal system of apartheid, but also a change in the country’s international image.

    The country’s struggle for liberation and reconciliation has shaped its identity and global standing. South Africa has positioned itself as a champion of international solidarity.

    South Africa’s unique approach to global issues has found expression in the concept of Ubuntu. These concepts inform our approach to diplomacy and shape our vision of a better world for all.

    This philosophy translates into an approach to international relations that respects all nations, peoples, and cultures. It recognises that it is in our national interest to promote and support the positive development of others.

    As we celebrate our over 30 years of freedom and democracy, South Africa’s global repositioning can be seen with the strong strategic partnership with the European Union that is premised on values such as democracy, human rights and the rule of law.

    Immediately after his release from prison thirty-five years ago, President Nelson Mandela, our first democratic President, travelled to the European Parliament to receive the Sakharov Prize for Freedom of Thought. This honorary award is the highest tribute given by the European Union (EU) to individuals who contributed to the fight for human rights.

    During this visit, the former president, who is affectionately known as Madiba addressed the European Parliament and thanked the European countries for their contribution towards our fight for freedom. He also called on them to support us as we set about rebuilding the country and reversing the legacy of apartheid, which continues to be felt up to this day.

    This visit marked the beginning of official relations between South Africa and the EU in pursuit of our national interests, especially to tackle pressing challenges we inherited under apartheid. In 1999 for instance, we became the first African country to sign a Free Trade Agreement (FTA) with the EU known as the South Africa-European Union (EU) Trade, Development and Cooperation Agreement (TDCA).

    In 2007 we further deepened our relations through the adoption of the South Africa – EU Strategic Partnership Joint Action Plan. The plan is essentially a roadmap for cooperation in various key areas such as trade, climate change, science and technology as well as regional and global issues.  

    The TDCA agreement has helped our country to integrate into the global economy and it established a Political Dialogue between South Africa and the EU at the Ministerial level. This high-level dialogue advances the EU-South Africa strategic partnership across key areas such as trade, energy, peace and security and multilateralism.

    We are pleased that as we celebrate 30 years of democracy and thirty-five years since Madiba’s release and visit to the EU Parliament, our relationship with the EU continues to flourish and is mutually beneficial. South Africa remains the EU’s key trade partner on the African Continent, and the EU as a bloc is South Africa’s largest trading partner.

    Total trade between South Africa and EU has increased by 44 percent over the past five years; recording an increase from R586 billion in 2019 to R846 billion in 2023. The EU accounts for 41 percent of total Foreign Direct Investment (FDI) in the country and over 2,000 EU companies operate in South Africa, supporting more than 500,000 direct and indirect jobs.

    To further discuss shared priorities and foster stronger ties between South Africa and EU, in February this year, we successfully hosted the 16th Ministerial Political Dialogue. The Dialogue was co-chaired by the Minister of International Relations and Cooperation, Ronald Lamola and Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy and Vice President of the European Commission.

    During this dialogue, both parties reiterated their commitment to multilateralism, rules-based international order, and the centrality of the United Nations Charter. They agreed on the need to make the UN Security Council more representative, inclusive, transparent, efficient, democratic and accountable. They further discussed issues of trade and investment, along with greater mutual cooperation and reinforced bilateral relations between South Africa and the EU.

    The dialogue also served as preparatory meeting for the EU-South Africa Summit which was held in South Africa on 13 March 2025. Our national priorities of reducing poverty, unemployment and inequality underpin our work at the SA-EU Summit. In line with commitments in the National Development Plan we engage with our EU counterparts to further grow our economy and develop our society.

    The summit was also an opportunity to set new priorities for the Strategic Partnership, including in trade and investment, and to reinforce the shared values underpinning the partnership. During the summit, the EU announced a 4.7-billion-euro investment package to support mutually beneficial investment projects. The investment package covers areas such as critical raw mineral processing, green hydrogen, renewable energy, transport and digital infrastructure, local vaccine and pharmaceutical production, and resources for skills development.

    The two parties further agreed to launch negotiations towards a Clean Trade and Investment Partnership to support the development of cleaner value chains for raw materials and local beneficiation, renewable and low carbon energy, and clean technology. Both parties committed to work together to address existing challenges in trade in animal and plant products. South Africa committed to find a solution to facilitate the imports of poultry from disease-free areas in the European Union into South Africa.

    The Summit was also an opportunity for South Africa to influence international policies that could have an impact on our own economy. Both parties agreed to support a just, comprehensive, and lasting peace on conflicts around the globe including Ukraine, the Democratic Republic of the Congo and Palestine. This includes a need to reform the UN Security Council.  

    Furthermore, the European Union expressed support for South Africa’s G20 Presidency in 2025, and our hosting of the G20 Summit at the end of the year. The EU also pledged to strengthen the G20 Compact with Africa.

    Government welcomes the visit by the EU leaders to the country and we are confident that the agreements signed will not only accelerate economic growth but will help South Africa eradicate the triple challenge of unemployment, poverty and inequality.

    *Nomonde Mnukwa is the Acting Director General of the GCIS

    MIL OSI Africa –

  • MIL-OSI United Nations: UNECE guidelines on subjective poverty open new avenue for holistic measurement

    Source: United Nations Economic Commission for Europe

    Recognizing and addressing poverty under all its dimensions, beyond traditional income or consumption-based thresholds, is essential to design more inclusive and effective policies. Subjective poverty, which reflects individuals’ perceptions of their financial well-being based on personal views and experiences, is increasingly being incorporated into poverty assessment tools alongside objective measures. This holistic approach helps capture the complexities of poverty and ensures that the voices of the poorest are heard, complementing objective measures in important ways.   

    Thanks to new guidelines for methodologies used in subjective poverty measurement published by UNECE, international and domestic policymakers will have additional means to support targeted measures to improve well-being and social stability, especially for disadvantaged populations. The document also recommends subjective poverty indicators that could be used for international comparisons. 

    Drawing on prior subjective poverty data collection strategies, namely the EU-SILC, and experience from Armenia, Austria, Mexico, Kazakhstan, The Netherlands, Switzerland, Ukraine, and the United Kingdom, the Task Force summarizes qualitative and quantitative approaches to subjective poverty measurement and analysis. Qualitative approach offers an analysis of poverty beyond the realm of specific income thresholds.  These questions include asking participants about their perceptions regarding their current financial situation and whether they consider their household poor or feeling at risk of poverty. The second group of qualitative categorical questioning focuses on specific perceptions of their own income in respect to ability to make ends meet, satisfaction, or adequacy of consumption (e.g. Deleeck question). Finally, the quantitative approach builds on money metric questions, asking respondents to provide a specific amount they consider necessary to pay usual necessary expenses (minimum income question).    

    Providing organizations with a methodological toolkit that is adaptable to independent resource constraints and research objectives, the guidelines outline procedures on defining sample populations, conducting surveys, hosting focus groups, and collecting information from administrative and registry data. Such procedures aid in eliminating sample biases and ensuring data validity and reliability errors related to responsiveness and representativeness, question wording, and plausible receipt of social transfers in-kind, differences in geographic prices, within household sharing, and cultural differentiation.  

    The guidelines were prepared by the UNECE Task Force on Subjective Poverty Measures under the Conference of European Statisticians. This follows in the footsteps of prior guidance developed by UNECE task teams, including the Guide on Poverty Measurement and the Poverty Measurement: Guide to Data Disaggregation. 

    MIL OSI United Nations News –

  • MIL-OSI USA: Senator Markey Hosts Office Hours on Importance of Protecting SNAP and Food Security Benefits as Trump Administration, Congressional Republicans Plan for Cuts

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey

    Massachusetts receives $2.6 billion in SNAP annually

    Washington (March 26, 2025) – Senator Edward J. Markey (D-Mass.) today hosted a virtual meeting with Congressman Jim McGovern (MA-02), advocates from Mass Law Reform Institute, Project Bread, Food Bank of Western Massachusetts, Greater Boston Food Bank, Worcester County Food Bank, Massachusetts Food System Collaborative, and Merrimack Valley Food Bank, and hundreds of constituents on the importance of protecting SNAP and other essential food security benefits for people in Massachusetts. Last month, Donald Trump, Elon Musk, and Republicans in Congress advanced their plan to cut billions from SNAP, school meals, food banks, and farmers markets after stripping funding for programs that help schools purchase locally grown food.

    Massachusetts receives $220 million in federal funding for food security monthly, reaching families in every city and town in the Commonwealth. SNAP helps one in six Massachusetts residents, or about 670,000 families, put food on their table, but nearly 20 percent of families in Massachusetts still report struggling with food access. Families across the Commonwealth are seeing their purchasing power decrease as food costs increase at the sixth-highest rate in the country.

    “Food is essential—it is how we feed our families and sustain ourselves; how children get the nutrition they need to learn; and how we share our cultures and build our community. SNAP is a critical lifeline in uplifting millions of families to put food on their table,” said Senator Markey. “I heard stories from early educators, community college students, food bank leaders, and advocates that I can use to show Republicans what cuts to food security benefits will mean. If they want to make these cuts, I’m going to make sure every American knows that Republicans are taking food from people’s dinner tables to fuel billionaires’ tax breaks.”

    “The proposed twenty percent cuts to SNAP pose a significant threat to food insecurity here in the Commonwealth,” said Catherine D’Amato, President, and CEO of the Greater Boston Food Bank. “GBFB estimates that the proposed reduction in SNAP benefits equal 118 million meals lost throughout the state. To put that in perspective, imagine a packed Gillette Stadium with around 65,000 fans. If each person there needed three meals a day, 118 million meals could feed a sold-out crowd every day for over 600 days—almost two years! The already overburdened emergency food system here in Massachusetts will not be able to bridge this gap without significant philanthropic support and policy interventions.”

    “MLRI is grateful to Senator Markey and our entire delegation for their work to protect SNAP, Medicaid, and our safety-net,” said Vicky Negus, Benefits Policy Advocate at the Mass Law Reform Institute. “SNAP is our country’s most effective anti-poverty program – helping 1 in 6 MA residents put food on the table. Cutting SNAP would harm families struggling to get by for generations to come, worsen hunger, and harm health and our local economies.”

    “Each month, SNAP benefits support approximately 194,000 individuals in Western Massachusetts, bringing in around $35 million in federal dollars to the region,” said Christina Maxwell, Director of Programs at the Food Bank of Western Massachusetts. “Reducing SNAP benefits will not only increase hunger but also hurt farmers, local economies, and small businesses that depend on these federal dollars.”

    “The federal Supplemental Nutrition Assistance Program (SNAP) is the very foundation and source of nutritious food for 42 million children, older adults, and hard-working adults in every community in the United States. People who are constituents of every Senator and Representative in Congress. We applaud Senator Markey and the entire MA delegation for their vigorous and vigilant protection of SNAP. It is immoral for elected officials to take money from SNAP, which is food for their constituents, to free billions of dollars for tax cuts for billionaires. Food Banks and food pantries cannot fill the food gap created by a reduction in federal financial support.  The federal budget is the people’s budget, and Congress should ensure that SNAP thrives,” said Jean McMurray, CEO of the Worcester County Food Bank.

    “The Massachusetts Food System Collaborative appreciates Senator Ed Markey’s leadership in supporting SNAP and the federal grant programs that help make Massachusetts farms more sustainable and feed hungry residents. At a time of heightened food insecurity, proposed cuts to SNAP will only put more pressure on the emergency food system, force families to make impossible choices between food and rent, increase diet-related illness, and take dollars out of the local economy. Massachusetts farmers are facing significant cuts to grant programs that helped feed more food insecure residents and provided expanded market channels, and cuts to SNAP will further destabilize the local food system,” said Rebecca Miller, Policy Director at the Massachusetts Food System Collaborative.

    “SNAP is the most effective solution we have in the fight against hunger,” said Erin McAleer, President and CEO of Project Bread, the leading statewide food security organization in Massachusetts. “We need to strengthen and expand SNAP’s impact to support our neighbors experiencing food insecurity, instead of cutting into a critical lifeline for over 1 million Massachusetts residents. We are asking Congress to reject cuts to SNAP and reject the harm that would impact our communities nationwide.”

    MIL OSI USA News –

  • MIL-OSI USA: Statement From Governor Hochul on Federal Cuts

    Source: US State of New York

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    MIL OSI USA News –

  • MIL-OSI Africa: George rallies world leaders to accelerate efforts to achieve SDGs

    Source: South Africa News Agency

    Minister of Forestry, Fisheries and the Environment, Dr Dion George, has called on the international community to urgently accelerate efforts to achieve the Sustainable Development Goals (SDGs).

    “We are less than five years away from our deadline to achieving the SDGs and the end of this critical decade for climate action. Yet, we are still far from our goals and action targets,” the Minister said on Tuesday.

    The United Nations describes the SDGs as the “blueprint to achieve a better and more sustainable future for all” by addressing global challenges related to poverty, inequality and climate change, among others, with the year 2030 set as the target to meet the goals.

    Addressing the Group of Twenty (G20) Environment and Climate Sustainability Working Group (ECSWG) virtually, the Minister said poverty levels are worsening, and that carbon dioxide (CO2) emissions reached record highs last year. 

    “This calls for an urgent acceleration of our efforts. Our commitment to achieve these goals must not waver. That is why South Africa has placed solidarity, equality and sustainability at the centre of our G20 Presidency.

    “As the international community, together, we committed ourselves to the ambitious agenda to end poverty and hunger, to protect our planet, to achieve universal education and health coverage, and to promote decent work and sustainable economic growth by adopting the 2030 Agenda for Sustainable Development and its Sustainable Development Goals,” George said.

    The Minister said South Africa is striving to champion and fast-track action in the pursuit of a just transition to a low-carbon, climate resilient and inclusive society, and lead by example. 

    Last week, President Cyril Ramaphosa proclaimed the Climate Change Act, laying the ground for ambitious climate action domestically. 

    Earlier this month, the Minister informed the public that the President proclaimed the Climate Change Act, 2024, with the proclamation notice published in the Government Gazette on 17 March 2025, which was the commencement date of the Act.

    “The Act is intended to enable the development of an effective climate change response and a long-term, just transition to a low-carbon and climate-resilient economy and society for South Africa in the context of sustainable development; and to provide for matters connected therewith,” the Minister said at the time.

    The Act lays the foundation for a green economy that is resilient, inclusive and future-focused. It creates a clear framework for climate action.

    In his address on Tuesday, the Minister said South Africa’s rollout of renewable energy has materially accelerated over the past few years, driving the decarbonisation of South Africa’s energy system, while the implementation of Expanded Producer Responsibility schemes and circular economy initiatives is improving waste management.

    “The task remains immense. Poverty, unemployment, hunger, inequality, environmental degradation and climate change are but a few of the complex and interconnected issues facing the world today. 

    “…We thus reiterate the critical role of multilateralism in addressing these complexities, and South Africa’s very strong support for multilateralism,” the Minister explained.

    Priorities 

    George said the five interrelated priorities of the Environment and Climate Sustainability Working Group provide an opportunity to address multiple complexities within this context, while advancing the achievement of the Sustainable Development Goals.

    The priorities include Biodiversity and Conservation, Land Degradation, Desertification and Drought, Chemicals and Waste Management, Climate Change and Air Quality, as well as Oceans and Coasts.

    “These priorities of the G20 Environment and Climate Sustainability Working Group for this year are viewed as critical enablers to address poverty, create employment and meet other sustainable development goals, thereby contributing towards the global effort to respond to the triple complexities of climate change, pollution and biodiversity loss, in line with the overall theme of South Africa’s G20 Presidency of Solidarity, Equality and Sustainability,” the Minister said.

    As a primary outcome of the G20 Presidency this year, South Africa will explore ways that the G20 can leverage opportunities to increase the scale and flows of climate finance, critical to enabling the Just Transition, mitigation and adaptation efforts, while ensuring that the required investments reach the most vulnerable of society. 

    “It is paramount for developing economy countries to be actively supported in their efforts to achieve ‘whole of society and whole of economy’ just transitions to sustainable development on the ground, through scaled access to low-cost finance, technology and skills.

    “It is also increasingly recognised that many people across the globe are exposed to unhealthy and often deadly levels of air pollution, and that the impacts of air pollution extend beyond health – affecting climate, biodiversity, ecosystems and economic development. 

    “This is also a key issue that needs to be addressed, and to which this Working Group can contribute. There are very extensive synergies between decarbonisation and the improvement of air quality,” the Minister said. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI USA: Tuberville, Moore Reintroduce Bill to Boost Alabama Pecan and Tree Nut Farmers, Increase Healthier Options for Seniors  

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)
    WASHINGTON – Today, U.S. Senator Tommy Tuberville is continuing his efforts to boost Alabama’s agriculture community and make healthy foods more accessible for Alabama’s more than 54,000 seniors by reintroducing the Farmers’ Market Expansion Act, legislation that would make pecans and other tree nuts eligible for the USDA’s Senior Farmers’ Market Nutrition Program (SFMNP). Senator Tuberville’s legislation would make tree nuts, including pecans and shelled nuts, available for participating seniors. AgriPulse first reported the bill’s introduction.
    “The Farmers’ Market Expansion Act would be a huge win for both our seniors and tree nut farmers by making it easier for seniors to incorporate pecans into their diet,” said Senator Tuberville. “Not only are pecans delicious, but they are a great source of nutrients needed for brain, bone, and heart health. I’m proud to introduce this legislation with Congressman Moore to support Alabama’s farmers and Americans seeking healthier lives. As Alabama’s voice on the Senate Ag Committee, I’ll continue advocating for Alabama’s farmers and bringing important ag and nutritional priorities to the table.”
    U.S. Senator Ben Luján (D-NM) joined Senator Tuberville in introducing the legislation. U.S. Representative Barry Moore (R-AL-01) is leading companion legislation in the U.S. House of Representatives.
    “Adding tree nuts, especially shelled pecans, to the Seniors’ Farmers’ Market Nutrition Program benefits Alabama producers and seniors,” said Rep. Moore. “Pecans are an important part of Alabama’s agriculture, and we are hopeful this legislation creates competitive markets for our tree nut producers. I am proud to work alongside Senator Tuberville to deliver this much needed legislation for Alabama’s farmers and the American people.”
    The Farmers’ Market Expansion Act is endorsed by the National Pecan Federation, Southeastern Pecan Growers Association, Almond Alliance, American Pistachio Growers, California Walnut Commission, Alabama Pecan Growers Association (APGA), Alabama Department of Agriculture & Industries, Alabama Farmers Federation (ALFA), Alabama Fruit and Vegetable Growers Association (AFVGA). Text of the bill can be found here. 
    “The attention to the pecan industry in Alabama continues to grow. The opportunity for Pecans to be added to the Senior Market Nutrition Program would be a huge win for Alabama growers. The pecan nut has the highest amount of Antioxidants of any tree.  The fit here is a benefit to all open additional market for growers provide high quality nutrition for seniors’.  Thank you, Coach, for your focus and commitment to Alabama Farmers,” said Brian Futral, President of the Alabama Pecan Growers Association (APGA).
    “I’m grateful to Senator Tuberville for reintroducing the Farmers Market Expansion Act. Alabama is home to 170 farmers markets and 114 farm stands that would benefit from adding tree nuts to the Seniors’ Farmers’ Market Nutrition Program (SFMNP). Adding pecans to this program would provide our seniors with another healthy choice in addition to fresh produce, while also supporting Alabama’s hardworking pecan growers. This would be a win for our farmers, for our seniors and for Alabama agriculture,” said Alabama Department of Agriculture & Industries Commissioner Rick Pate.
    “The Almond Alliance supports Senator Tuberville and Representative Barry Moore’s introduction of the Pecan and Tree Nut Producers Assistance Act, which would allow nutrient-dense, locally grown tree nuts—such as almonds—to be included in the Senior Farmers’ Market Nutrition Program. This bill supports both the health of low-income seniors and the economic vitality of almond growers. Including nutritious, locally grown tree nuts in the program benefits consumers and producers alike,” saidAlexi Rodriguez, President and CEO, Almond Alliance.
    “The National Pecan Federation is proud to support the reintroduction of this legislation, which would include tree nuts in the Senior Farmers’ Market Nutrition Program (SFMNP). The inclusion of pecans in the SFMNP will expand the market for pecan producers across the country and increase consumer access to a healthy and delicious product. We appreciate the opportunity to include pecans in new local markets that will benefit seniors in our communities,” said Larry Don Womack, Chairman of the National Pecan Federation.
    “The Southeastern Pecan Growers Association supports the reintroduction of the Farmers’ Market Expansion Act, which would include access to local pecans for eligible seniors. This potential market is especially important to our smaller growers who are actively looking to place their pecan products in local and community-based markets. The passage of this bill would create success for pecan producers across the Southeast, while providing consumer access to a new, highly nutritious product,” said Justin Jones, Chairman of the Southeastern Pecan Growers Association.
    BACKGROUND:
    The SFMNP provides fresh, nutritious, locally-grown fruits, vegetables, herbs, and honey to eligible low-income seniors. These seniors must be 60 years of age or older and have a household income of no more than 185% of the federal poverty level. Eligible seniors can exchange coupons for program products at farmers’ markets, roadside stands, and community-supported agriculture (CSA) programs. 
    According to the USDA, in fiscal year 2022, the SFMNP had 757,751 seniors participate and 15,089 farmers sold products through the program across the country. Annual program benefits vary per state between $20 – $50 per year, with over 54,000 eligible seniors in Alabama. 
    According to the USDA Economic Research Service (ERS), common tree nuts are considered almonds, hazelnuts, macadamia nuts, pecans, pistachios, and walnuts. With this legislation, these tree nuts would be eligible for the SFMNP.
    Alabama is one of the country’s top pecan producers, ranking eighth nationally. Growers across the state harvested approximately 3 million pounds across 9,000 pecan-bearing acres in 2022. According to the 2022 Census of Agriculture, Alabama had over 762 producers who harvested 7,276 pecan-bearing acres.
    During Farm Bill listening sessions throughout Alabama last Congress, Senator Tuberville had outreach from several pecan growers who were seeking to add pecans to the farmers’ market program. Pecan producers have had seniors seeking to purchase whole and shelled pecans through the program, but cannot due to current restrictions. 
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Do you feel £1,400 better off every year since 2014?

    Source: Scottish National Party

    In the 2014 independence referendum Westminster politicians said “every Scot will be £1,400 better off every year” if people voted ‘No’.

    It’s therefore painfully ironic that, just a decade later, people in Scotland see headlines saying “UK families to be ‘£1,400-a-year poorer by 2030’.”

    New analysis by the Joseph Rowntree Foundation (JRF) – using forecast models from the Bank of England – shows that the austerity policies of Keir Starmer’s government will leave people worse off in the next five years.

    The JRF also said that if living standards haven’t improved by 2030, Labour will not only have failed to meet their own election pledge but will have become the first government in nearly 75 years to have seen a fall in living standards across a full parliament.

    They concluded that the worse effects of these policies will fall on the poorest third of the population.

    The pledge that “every Scot will be £1,400 better off every year” is not only looking threadbare, it’s been ripped into rags by the very people who promised it.

    And, this is no joke, the same Westminster politicians seriously argued that this £1,400 meant people would be able to enjoy ‘scoffing 280 hot dogs’ or drinking ’636 cappuccinos’. Instead we’ve seen food banks rise year on year.

    But those aren’t the only promises Westminster politicians made to persuade people to vote ‘No’.

    In the run-up to the 2014 referendum people were also promised “lower shopping bills” and that Westminster would “keep energy costs down for families in Scotland“.

    Better Together on X: “Lower shopping bills than if we left the United Kingdom say supermarkets. Read more: http://t.co/hcmC81lu9q #indyref http://t.co/MmDmHF6nrt” / X

    Better Together on X: “Being part of the UK keeps energy costs down for families in Scotland http://t.co/VkNwzmQ4kq #indyref” / X

    They highlighted Gordon Brown urging people in Scotland to vote ‘No’ “to create a more socially just country“; and that a Westminster-run social security system “offers better protection for pensioners, disabled and the unemployed“.

    Better Together on X: “Gordon Brown urges people in Scotland to stay in the UK to create a more socially just country http://t.co/0s9ZggfkZN #indyref” / X

    Better Together on X: “Gordon Brown in Dundee: “Our UK welfare state offers better protection for pensioners, disabled and the unemployed.” http://t.co/AYzvqu9EBH” / X

    With Scots facing yet more energy bill increases – despite Labour promises to cut them by £300 – and Keir Starmer’s government cutting winter fuel payments for pensioners and support for the disabled.

    This situation not only makes a bad joke of the Westminster politicians’ promises in the 2014 independence referendum, but it also exposes the duplicity of Labour’s promise of “Change”.

    Even before the 2024 election the signs of the direction of the UK were obvious.

    Reports revealed that UK workers were missing out on over £10,000 a year, with living standards falling behind other G7 nations, as well as Australia and the Netherlands.

    Other analysis showed that, compared to neighbouring countries in north west Europe, the UK in the 21st century has had the least wealth per person, the most poverty, and the greatest gap between rich and poor. It also shows that countries similar in size or smaller than Scotland are wealthier and more equal than the north west European average.

    But it could be so much different, and better, for Scotland.

    With a huge offshore energy potential, a food and drink sector worth billions and one of the best educated populations in Europe and can even be asked: Why is Scotland in a UK trailing its neighbours so badly?

    The reason is that those countries don’t have government from Westminster obsessed with cutting public spending again and again.

    Those other countries get government’s they voted for with policies they want, and the results can be seen in how they are wealthier, fairer and happier than the UK.

    Despite the ‘No’ campaigns 2014 promises, Westminster isn’t working for Scotland, but independence works for those countries.

    So why shouldn’t it work for Scotland too?

    MIL OSI United Kingdom –

  • MIL-OSI Canada: Indigenous women in Surrey will have new complex-care housing, support

    Source: Government of Canada regional news

    Indigenous women with complex mental-health and substance-use challenges in and around Surrey will soon have access to safe, culturally supportive housing and wraparound services to help them with their recovery. 

    “Combining culturally appropriate and trauma-informed care with safe, secure housing is essential in helping Indigenous women heal and rebuild their lives,” said Josie Osborne, Minister of Health. “These new complex-care housing units offer the supports needed to help people stabilize and improve their well-being, all under one roof and for as long as they need.”

    Starting in April 2025, complex-care housing services will be available for 10 Indigenous women living in Surrey with mental-health, substance-use and other concurrent health challenges. People living in this home will receive comprehensive, person-centred care that meets their specific needs, such as access to primary care, mental-health and substance-use services, counselling, cultural supports and daily living resources.

    “Complex-care housing has helped me tremendously,” said Kaitlynn, who has lived experience. “Not only was I able to get the right care to fit my needs, but it also allowed me and my daughter to be healthy, housed and together on my pathway to healing.”

    In partnership with the Province, this new initiative is led by the Aboriginal Housing Management Association (AHMA) and the Fraser Region Aboriginal Friendship Centre Association (FRAFCA). AHMA and FRAFCA will support the women accessing these specialized housing services to maintain a connection or reconnect to their culture.

    “There’s a critical need to provide more supportive housing and complex care for people experiencing homelessness in Surrey,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “We are working with Indigenous organizations and health-care partners to ensure that culturally safe, wraparound care is available for Indigenous women so they can live full, healthy lives.”

    As of March 1, 2025, the Province has expanded complex-care housing services to more than 500 people through 27 complex-care housing projects throughout B.C. Budget 2022 and Budget 2023 invested a total of $430 million to create and expand the complex-care housing program.

    Complex-care housing is a key action in Belonging in BC, the Province’s homelessness action plan. It is also a part of the Province’s Safer Communities Action Plan, which is taking action to address the biggest challenges to keep people safe and communities strong. Since 2017, the Province has nearly 92,000 homes that have been delivered or are underway, including approximately 2,050 homes in Surrey.

    Quotes:

    Amna Shah, parliamentary secretary for mental health and addictions —

    “Indigenous women in our community face unique challenges and these new housing units will provide the safe, supportive environment they need to thrive. By offering culturally appropriate care, we’re helping to create a foundation for healing and long-term well-being.”

    Margaret Pfoh, chief executive officer, Aboriginal Housing Management Association —

    “Complex-care housing is a direct response to the long-standing call for adequate, integrated health services in housing for Indigenous Peoples. Our approach is trauma-informed, culturally safe and proven to change lives. We know that it is crucial to respect people’s agency, dignity and choice when it comes to housing and services. People are living in encampments across B.C. for many reasons, and often it’s because of systemic racism and inter-generational poverty and trauma.”

    Kyla Painter, executive director, Fraser Region Aboriginal Friendship Centre Association (FRAFCA) —

    “Safe, stable housing that is rooted in culture and community is the foundation for healing. At FRAFCA, we see first-hand the barriers Indigenous women face in accessing the care and housing they need to rebuild their lives. This new complex-care housing project is a significant step forward in providing a supportive, culturally safe space where women can heal and thrive. We are proud to partner with AHMA and the Province to bring this critical service to Surrey.”

    Quick Facts:

    • In B.C., First Nations people are almost six times more likely to die from toxic-drug poisonings.
    • In 2023, 1,060 people experienced homelessness in Surrey, an increase of 65% from 2020.
    • In Metro Vancouver, approximately 33% of people experiencing homelessness identified as Indigenous.
    • A 2020 Point-in-Time Homelessness Count found Indigenous people experiencing homelessness in Surrey were more likely to be living with addiction, acquired brain injury, have a learning disability or cognitive impairment than non-Indigenous people experiencing homelessness.
    • Launched in 2022, complex-care housing is designed for those whose mental-health or substance-use challenges overlap with other serious health conditions, such as brain injuries or mobility impairments.

    Learn More:

    Learn about mental health and substance use supports in B.C.:
    https://helpstartshere.gov.bc.ca/

    To learn more about complex-care housing, visit:
    https://www2.gov.bc.ca/gov/content/health/managing-your-health/mental-health-substance-use/complex-care-housing

    To learn more about the Safer Communities Action Plan, visit:
    https://strongerbc.gov.bc.ca/safer-communities/

    To learn more about Homes for People plan, visit:
    https://news.gov.bc.ca/releases/2023HOUS0019-000436

    MIL OSI Canada News –

  • MIL-OSI United Nations: Yemen: Ten Years of War, a Lifetime of Loss 

    Source: United Nations 2

    Humanitarian Aid

    Marking a decade of war in Yemen, Othman Belbeisi, Regional Director for Middle East and North Africa at the UN International Organization for Migration (IOM), highlights the resilience of its people, the deepening humanitarian crisis, and the urgent need for global action.

    Ten years. That’s how long Yemenis have been putting their lives on hold – through airstrikes, through hunger, through loss. A decade of war has left Yemen’s infrastructure in ruins and its people exhausted. And yet, as the eleventh year begins, the world seems not to notice Yemen’s plight.

    Today, close to 20 million people in Yemen depend on aid to survive. Nearly five million remain displaced, pushed from one place to another by violence or disaster. The international community, once moved by the staggering images of war and suffering, has switched its focus to new emergencies. But for those who work in Yemen – and for those who live this crisis every day – the story is far from over.

    Ten years. That’s how long Yemenis have been putting their lives on hold – through airstrikes, through hunger, through loss. And yet, as the eleventh year begins, the world seems not to notice Yemen’s plight.

    No one feels this reality more deeply than our Yemeni colleagues, who have remained at their posts through it all to help their own people. Many have worked through airstrikes, instability, and loss, all while worrying about the safety of their families. Now, with rising tensions and deepening funding cuts, they fear for their jobs too. Unlike most of us, they don’t have the option to simply start over. They can’t rely on savings or opportunities elsewhere – their passport alone often determines how far their future can stretch.

    This is the daily reality in a country that, too often, is reduced to headlines about war. But Yemen is so much more than a crisis zone. It is a place of stunning landscapes, ancient cities, rich traditions, warm hospitality and the kind of food that stays in your memory long after you’ve left. But these aren’t the stories that make headlines. Instead, Yemenis are seen only through the lens of conflict and poverty. It’s time we remember the people behind the statistics.

    Like Basma, a mother from Al Hodeidah who was forced to flee with her children to Al Makha in search of safety and water. She used to walk for hours every day just to fill a few jerrycans. Her youngest child once fainted from thirst while waiting in the heat. For years, clean water was a dream until a recently completed water project finally brought some relief to her village.

    IOM Video | Yemen: Ten Years of Crisis and Why We Must Act Now

    Or Ibrahim, a 70-year-old man displaced by heavy floods in Ma’rib. When the waters swept through the settlement, he carried his adult son, who lives with a disability, on his back to safety. They lost everything – their shelter, belongings, and sense of stability – butIbrahim never complained. He focused only on finding help for his son. Now, they live in a temporary tent exposed to the elements, dependent on aid that may not arrive in time or at all.

    Or Mohammed, a young man from Ethiopia who crossed deserts and conflict zones with nothing but the hope of reaching a better life. He never made it to the Gulf. Instead, he found himself stranded in Yemen – detained, beaten, and left without food or shelter. By the time he reached IOM’s Migrant Response Point, he was weak, traumatized, and desperate to go home. The only option left was to register for voluntary return – a journey home that many others never get to take.

    Yemenis are not just victims, They are survivors, caregivers, builders, teachers, mothers, fathers, and children with hopes and ambitions like anyone else.

    These are just three among millions of lives caught in the margins of this protracted crisis. One of the poorest countries in the Arab world is getting poorer – not because of its people, but because the world is slowly turning its back. This war didn’t start yesterday, but its consequences grow heavier by the day. Yemenis are not to blame for what is happening in the world, and yet, they bear the weight of it all. They don’t need our pity – they need our solidarity. Let this be the year we turn empathy into action.

    As the international community gathers in conferences, makes pledges, and sets priorities, Yemen must not be left behind. Yemenis are not just victims. They are survivors, caregivers, builders, teachers, mothers, fathers, and children with hopes and ambitions like anyone else. But words alone will not keep people safe, fed, or sheltered. Don’t let these conversations remain just talk – Yemen needs action. To look away now would not just be a failure of diplomacy – it would be a failure of humanity.

    Originally published on IOM Blogs on 26 March 2025.

    MIL OSI United Nations News –

  • MIL-OSI United Kingdom: Funding boost to keep homes warm and cut energy bills

    Source: City of Leicester

    PEOPLE are being encouraged to use a digital advice tool to see how they might benefit from new support for energy efficient home improvements.

    Leicester City Council has been awarded over £4.5 million of Warm Homes Local Grant funding from the Government’s Department for Energy Security and Net Zero.

    The scheme will offer grants to low-income households to pay for better insulation and other improvements, such as solar panels and low carbon heating, to cut bills for families, slash fuel poverty, and help reduce carbon emissions.

    To be eligible, homes must be privately owned (owner occupied or privately rented); have an energy performance certificate (EPC) between D and G; and have a household income of less than £36,000.

    Applications for the new grants are expected to begin in later-summer, with full details of the amount of support available to households due to be published soon.

    In the meantime, residents can explore how their homes might benefit by using the new Homewise digital advice tool, developed by Energy Saving Trust.

     This free online service helps homeowners identify energy efficiency improvements they could make to their homes. By completing a simple online survey, people can get a personalised action plan tailored to their needs and budget. They’ll also get a breakdown of the cost for any improvements and potential savings.

    Cllr Geoff Whittle, assistant city mayor for environment and transport, said: “We know that installing energy efficient home improvements can be expensive so the announcement of this Government funding for new grants is very welcome.

    “We are already making free tailored energy advice available to city residents through Homewise. This free online advice is easy to get and will help people see how they can make their home more energy efficient, save money and reduce their carbon footprint.

    “By understanding your home’s energy needs now, you’ll be in a better position to take advantage of the grants when applications open later this year.”

    Laura Atkinson, business development manager at Energy Saving Trust said: “Leicester City Council is leading the way in empowering its residents to identify home energy improvements that will benefit them.

    “We know the value of personalised advice in helping people to make informed choices on how to make their home cheaper to heat and lower carbon emissions – our expert tool Homewise was created with this aim.”

    To find out more about Homewise, and to register for free tailored energy advice for your home, visit leicestercitycouncil.homewise.energy

    The Warm Homes: Local Grant scheme is part of the Government’s national Warm Homes Plan which aims to upgrade five million homes over the next five years to cut bills for families and deliver warmer homes to slash fuel poverty.

    Leicester is one of 73 local authorities, combined authorities and consortium areas to receive a share of over £463,000,000 of Government cash set aside for the scheme.

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Spring Statement 2025 speech

    Source: United Kingdom – Executive Government & Departments 3

    Speech

    Spring Statement 2025 speech

    Spring Statement 2025 speech as delivered by Chancellor Rachel Reeves.

    Mr Speaker, [political content redacted]. 

    To provide security for working people. 

    And to deliver a decade of national renewal. 

    That work began in July – and I am proud of what we have delivered in just nine months. 

    Restoring stability to our public finances…  

    … giving the Bank of England the foundation to cut interest rates…  

    … three times since the General Election.  

    Rebuilding our public services… 

    … with record investment in our NHS… 

    … bringing waiting lists down for 5 months in a row.   

    And increasing the National Living Wage… 

    … to give 3 million people a pay rise from next week.  

    Now our task is to secure Britain’s future… 

    … in a world that is changing before our eyes.  

    The threat facing our continent was transformed when Putin invaded Ukraine. 

    It has since escalated further…  

    … and continues to evolve rapidly.  

    At the same time, the global economy has become more uncertain…  

    … bringing insecurity at home… 

    … as trading patterns become more unstable… 

    … and borrowing costs rise for many major economies.  

    Mr Speaker, the job of a responsible government is not simply to watch this change. 

    This moment demands an active government. 

    A government not stepping back, but stepping up.  

    A government on the side of working people…  

    … helping Britain to reach its potential.  

    We have the strengths to do just that… 

    … as one of the world’s largest economies … 

    … an ally to trading partners across the globe…  

    … and a hub for global innovation.  

    These strengths… 

    … and the progress we have made so far… 

    … mean we can act quickly and decisively in a more uncertain world… 

    … to secure Britain’s future… 

    … and to deliver prosperity for working people. 

    Mr Speaker, as I set out at the Budget last year… 

    … I am today returning to the House to provide an update on our public finances… 

    … supported by a new forecast from the independent Office for Budget Responsibility… 

    … ahead of a full Spending Review in June. 

    I will then return to the House in the autumn to deliver a budget… 

    … in line with our commitment to deliver just one major fiscal event a year. 

    So let me turn now to the OBR’s forecasts… 

    … and I want to thank Richard Hughes and his team for their dedicated work. 

    The increased global uncertainty has had two consequences. 

    First, on our public finances. 

    And second, on our economy. 

    I will take each in turn.  

    In the autumn, I set out new fiscal rules that would guide this government. 

    These fiscal rules are non-negotiable. 

    They are the embodiment of this government’s unwavering commitment… 

    … to bring stability to our economy… 

    … and to ensure security for working people. 

    [political content redacted]

    But we must earn that trust every single day.  

    The two fiscal rules that I set out at the Budget were… 

    First, our “Stability Rule”, which ensures that public spending is under control… 

    … balancing the current budget by 2029-30… 

    … so that day-to-day spending is met by tax receipts.  

    Second, our “Investment Rule” to drive growth in the economy… 

    … ensuring that net financial debt falls by the end of the forecast period…  

    … while enabling us to invest alongside business. 

    Turning first to the Stability Rule, the OBR’s forecast shows that… 

    … before the steps that I will take in this statement…  

    … the current budget would have been in deficit by £4.1bn in 2029-30… 

    … having been in surplus by £9.9bn in the autumn…  

    … as the UK, alongside our international peers like France and Germany… 

    … has seen the cost of borrowing rise during this period of heightened uncertainty in global markets. 

    As a result of the steps that I am taking today… 

    … I can confirm that I have restored in full our headroom against the “stability rule”…  

    … moving from a deficit of £36.1bn in 2025-26 and £13.4bn in 2026-27… 

    … to a surplus of £6.0bn in 2027-28, £7.1bn in 2028-29 and a surplus of £9.9bn in 2029-30. 

    [political content redacted]

    That means that we are continuing to meet the Stability Rule two years early…  

    … building resilience to shocks in this, a more uncertain world.  

    The OBR forecast that the “investment rule” is also met two years early… 

    … with net financial debt of 82.9% of GDP in 2025-26 and 83.5% in 2026-27… 

    … before falling from 83.4% in 2027-28, to 83.2% in 2028-29 and 82.7% in 2029-30…  

    … providing headroom of £15.1bn in the final year of the forecast… 

    … broadly unchanged from the autumn.  

    [political content redacted]

    … debt interest payments now stands at £105.2bn this year… 

    … Mr Speaker, that is more than we allocate on Defence, the Home Office and Justice combined. 

    [political content redacted]

    So the responsible choice is to reduce our levels of debt and borrowing in the years ahead… 

    … so that we can spend more on the priorities of working people. And that is exactly what this government will do. 

    Mr Speaker. 

    I said that our fiscal rules were non-negotiable. 

    And I meant it. 

    I will always deliver economic stability. 

    And I will always put working people first.  

    [political content redacted]

    I said it at the Budget. 

    And I say it again today. 

    Let me now set out the steps the government has taken.  

    At the Budget we protected working people… 

    … by keeping our promise not to raise their rates of National Insurance, income tax or VAT. 

    At the same time, we began to rebuild our public services…  

    [political content redacted]

    Ours were the right choices, the right choices for stability and the right choices for renewal… 

    … funded by the decisions that we took on tax.  

    As I promised in the autumn, this Statement does not contain any further tax increases.  

    But when working people are paying their taxes, while still struggling with the cost-of-living…  

    …it cannot be right that others are still evading what they rightly owe in tax.  

    In the Budget, I delivered the most ambitious package of measures that we have ever seen… 

    … to cut down on tax evasion… 

    … raising £6.5bn per year by the end of the forecast.  

    Today, I go further… 

    … continuing our investment in cutting-edge technology … 

    … investing in the HMRC’s capacity to crack down on tax avoidance… 

    … and setting out plans to increase the number of tax fraudsters charged every year by 20%. 

    These changes raise a further £1bn… 

    … taking the total revenue raised from reducing tax evasion under this [political content redacted] government to £7.5bn… 

    … figures verified by the Office for Budget Responsibility…  

    … and I want to thank my Honourable Friend the Exchequer Secretary for his continued work in this area.  

    Mr Speaker, last week my Right Honourable Friend the Secretary of State for Work and Pensions, set out this government’s plans to reform the welfare system.  

    [political content redacted]

    We believe that if you can work, you should work… 

    … but if you can’t work, you should be properly supported.  

    This government inherited a broken system.  

    More than 1,000 people are qualifying for Personal Independence Payments. 

    And 1 in 8 young people are not in employment, education or training. 

    If we do nothing, we are writing off an entire generation.  

    That cannot be right and we will not stand it.  

    It is a waste of their potential and it is a waste of their futures and we will change it. 

    As my Right Honourable Friend said in her statement last week… 

    … the final costings would be subject to the OBR’s assessment. 

    Today, the OBR have said… 

    … that they estimate the package will save £4.8bn in the welfare budget… 

    … reflecting their judgements on behavioural effects and wider factors. 

    This also reflects final adjustments to the overall package… 

    … consistent with the Secretary of State’s statement last week… 

    … and the government’s Pathways to Work Green Paper. 

    The Universal Credit Standard Allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30… 

    … while the Universal Credit Health element will be cut for new claimants by 50% and then frozen.  

    On top of this, we are investing £1bn to provide guaranteed, personalised employment support to help people back into work… 

    … and £400m to support the Department for Work and Pensions and our Job Centres to deliver these changes effectively and fairly… 

    … taking total savings after that for the package to £3.4bn. 

    Whilst spending on disability and sickness benefits will continue to raise, these plans 

    mean that welfare spending as a share of GDP will fall between 2026-27 and the end of the forecast period.  

    [political content redacted]

    We are reforming our welfare system… 

    … making it more sustainable… 

    … protecting the most vulnerable… 

    … and supporting more people back into secure work lifting them out of poverty.  

    Mr Speaker, at the Budget, I fixed the foundations of our economy to deliver on the promise of change. 

    That work has already begun. 

    2 million extra appointments in our NHS. 

    Waiting lists down.  

    New breakfast clubs opening across England. 

    The largest settlements in real terms for Scotland, Wales and Northern Ireland in the history of devolution.  

    Asylum costs, falling. 

    Promises made, promises kept.  

    [political content redacted]

    At the Budget… 

    … alongside providing an increase in funding for this year and next… 

    … I set the envelope for the Spending Review… 

    … which we will deliver in June… 

    led by my RHF the Chief Secretary to the Treasury 

    … to set departmental budgets until 2028-29 for day-to-day spending… 

    … and until 2029-30 for capital spending.  

    Today, I am reflecting two steps that we have taken in our spending plans.  

    First, because we are living in an uncertain world… 

    … as the Prime Minister has set out… 

    … we will increase defence spending to 2.5% of GDP, reducing overseas aid to 0.3% of Gross National Income. 

    This means we save £2.6bn in day-to-day spending in 2029-30… 

    … to fund our more capital-intensive defence commitments.  

    Second, in recent months, we have begun to fundamentally reform the British state… 

    … driving efficiency and productivity across government… 

    … to deliver tangible savings… 

    … and improve services across our country. 

    Earlier this month, the Prime Minister set out our plans to abolish the arms-length body NHS England… 

    … and ensure that money goes directly to improving the service for patients. 

    My Right Honourable Friend the Health Secretary is driving forward vital reforms to increase NHS productivity… 

    … bearing down on costly agency spend… 

    … to save money so that we can improve patient care. 

    And my Right Honourable Friend the Chancellor of the Duchy of Lancaster is taking forward work to significantly reduce the costs of running government… 

    … by 15%, worth £2bn, by the end of the decade. 

    This work shows that we can make our state leaner, and more agile… 

    … delivering more resources to the frontline…  

    … while ensuring we control day-to-day spending to meet our fiscal rules. 

    Today, I build on that work… 

    … by bringing forward £3.25bn of investment… 

    … to deliver the reforms that our public services need…  

    … through a new Transformation Fund.  

    That is money brought forward now… 

    … to bring down the costs of running government by the end of the forecast period…   

    … by making public services more efficient, more productive and more foucssed on the user. 

    I can confirm today the first allocations from this fund… 

    … including funding for Voluntary Exit Schemes to reduce the size of the Civil Service… 

    … pioneering AI tools to modernise the state… 

    … investment in technology for the Ministry of Justice to deliver probation services more effectively… 

    … and up-front investment so we can support more children in foster care… 

    … to give them the best possible start in life… 

    … and reduce cost pressures in the future. 

    Our work to make government leaner… 

    … more productive… 

    … and more efficient… 

    … will help deliver a further £3.5bn of day-to-day savings by 2029-30. 

    Overall, day-to-day spending will be reduced by £6.1bn by 2029-30…  

    … and it will now grow by an average of 1.2% a year above inflation…  

    … compared to 1.3% in the Autumn. 

    Mr Speaker, I can confirm to the House that day-to-day spending will increase in real terms, above inflation, in every single year of the forecast.  

    And in the Spending Review, apart from the reduction in overseas aid… 

    … day-to-day spending across government has been fully protected.   

    I can also confirm our approach to capital investment.  

    In the Autumn Budget I announced £100bn of additional capital spending…  

    … to crowd in investment from the private sector… 

    … to fix our crumbling infrastructure…  

    … and to create jobs in every corner of our country. 

    [political content redacted]

    Today, I am instead increasing capital spending … 

    … by an average of £2bn per year compared to the Autumn…  

    … to drive growth in our economy… 

    … and to deliver in full our vital commitments on defence. 

    This government will ensure that every pound we spend will deliver for the British people… 

    … by increasing productivity… 

    … driving growth in our economy… 

    … and improving our frontline public services.  

    Mr Speaker, let me turn now to the impact of increased uncertainty on our economy. 

    To deliver economic stability, we must work closely with the Bank of England… 

    … supporting the independent Monetary Policy Committee to meet their 2% inflation target.  

    There have been three interest rate cuts since the General Election and today’s data showed that inflation fell in February. 

    [political content redacted]

    … the OBR forecast that CPI inflation will average 3.2% this year… 

    … before falling rapidly to 2.1% in 2026 and meeting the 2% target from 2027 onwards… 

    … giving families and businesses the security that they need… 

    … and providing our economy with the stable platform it needs to grow. 

    Mr Speaker… 

    … earlier this month, the OECD downgraded this year’s growth forecast for every G7 economy, including the UK. 

    And the OBR have today revised our growth forecast for 2025… 

    … from 2% in the autumn… 

    … to 1% today. 

    I am not satisfied with these numbers. 

    That is why we on this side of the house are serious about taking the action needed to grow our economy.  

    Backing the builders, not the blockers…  

    … with a third runway at Heathrow Airport… 

    … and the Planning and Infrastructure Bill.  

    Increasing investment… 

    … with reforms to our pension system… 

    … and a new National Wealth Fund.  

    And tearing down regulatory barriers… 

    … in every sector of our economy. 

    That is a serious plan for growth. 

    That is a serious plan to improve living standards.  

    That is a serious plan to renew our country.  

    Mr Speaker, a changing world presents challenges.  

    But it also presents new opportunities.  

    For new jobs. 

    … and new contracts… 

    … in our world-class defence industrial centres… 

    … from Belfast to Deeside, and from Plymouth to Rosyth. 

    In February, the Prime Minister set out our government’s commitment to increase spending on defence to 2.5% of GDP from April 2027… 

    The biggest sustained increase in defence spending since the end of the Cold War 

    …and an ambition to spend 3% of GDP on defence in the next parliament. 

    That was the right decision in a more insecure world… 

    … putting an extra £6.4bn into defence spending by 2027. 

    But we have to move quickly in this changing world. 

    And that starts with investment. 

    So today I can confirm that I will provide an additional £2.2bn for the Ministry of Defence in the next financial year… 

    … a further downpayment on our plans to deliver 2.5% of GDP by 2027.  

    This additional investment is not just about increasing our national security…  

    … but increasing our economic security, too.  

    As defence spending rises, I want the whole country to feel its benefits. 

    So I will set out the immediate steps that we are taking to boost Britain’s defence industry… 

    … and to make the UK a defence industrial superpower.  

    We will spend a minimum of 10% of the Ministry of Defence’s equipment budget on novel technologies … 

    … including drones and AI enabled technology… 

    … driving forward advanced manufacturing production in places like Glasgow, in Derby and in Newport… 

    … creating demand for highly skilled engineers and scientists… 

    … and delivering new business opportunities for UK tech firms and start-ups.  

    We will establish a protected budget of £400m within the Ministry of Defence… 

    … a budget that will rise over time for UK Defence Innovation… 

    … with a clear mandate to bring innovative technology to the front line at speed. 

    We will reform our broken defence procurement system… 

    … making it quicker, more agile and more streamlined…. 

    … and giving small businesses across the UK better access to Ministry of Defence contracts. 

    Something welcomed by the Federation of Small Businesses. 

    We will take forward our Plan for Barrow, a town at the heart of our nuclear security… 

    … working with my Honourable Friend the Member for Barrow and Furness…  

    … and providing £200m, supporting the creation of thousands of jobs there. 

    We will regenerate Portsmouth naval base, securing its future…   

    … as called for by my Honourable Friend the Member for Portsmouth South. 

    We will secure better homes for thousands of military families… the homes that they deserve [political content redacted]. 

    … homes for our military families in the constituencies of my Honourable Friends for Plymouth Moor View, Plymouth Sutton & Devonport, York Outer and in Aldershot.  

    That is the difference that this [political content redacted] government is making.  

    Finally, Mr Speaker, we will provide £2bn of increased capacity for UK Export Finance… 

    … to provide loans for overseas buyers of UK defence goods and services… 

    Because I want to do more with our defence budget so we can buy and make and sell things here in Britain.  

    … giving further opportunities for our world leading defence companies and those who work in them… 

    … to grow and create jobs here in Britain… 

    … as military spending rises right across Europe.  

    To oversee all of this vital work… 

    … my Right Honourable Friend the Defence Secretary and I will establish a new Defence Growth Board… 

    … to maximise the benefits from every pound of taxpayers’ money that we spend. 

    And we will put defence at the heart of our modern industrial strategy… 

    … to drive innovation that can deliver huge benefits back into the British economy. 

    Mr Speaker, that is how we make our country a defence industrial superpower… 

    … so the skills of the future… 

    … the jobs of the future… 

    … and the opportunities of the future… 

    … can be found right here in the United Kingdom.  

    Mr Speaker, [political content redacted] there are no shortcuts to economic growth. 

    It will take long-term decisions.  

    It will take hard yards. 

    It will take time for the reforms that we are introducing to be felt in the everyday economy. 

    It is right that the Office for Budget Responsibility consider the evidence… 

    … and look carefully at measures before recognising a growth impact in their forecast.  

    But, Mr Speaker, I can announce to the House…  

    … that the OBR have considered – and have scored – one of the central planks of our plan for growth.  

    In my first week as Chancellor, I announced that we were pursuing the most ambitious set of planning reforms in decades… 

    … to get Britain building again. 

    And in December – we published changes to the National Planning Policy Framework… 

    … driven forward tirelessly by my Right Honourable Friend the Deputy Prime Minister…  

    … reintroducing mandatory housing targets… 

    … and bringing “grey belt” land into scope.  

    The OBR have today concluded that these reforms will permanently increase the level of real GDP… 

    … by point 0.2% by 2029-30… 

    … an additional £6.8bn in our economy… 

    … and by point 0.4% of GDP within 10 years… 

    … an additional £15.1bn in our British economy. 

    Mr Speaker, that is the biggest positive growth impact that the OBR have ever reflected in their forecast, for a policy with no fiscal cost.  

    And taken together with our plans to increase capital spending that we set out in the Budget last year… 

    … this government’s policies will increase the level of real GDP by point 0.6% in the next ten years.  

    Mr Speaker, that is the difference that this [political content redacted] government is making. 

    Policies to grow our economy.

    [political content redacted]

    The OBR have concluded that our reforms will lead to housebuilding reaching a forty-year high… 

    …  of 305,000 a year by the end of the forecast period.  

    And changes to the National Planning Policy Framework alone… 

    … will help build over 1.3 million homes in the UK over the next five years… 

    … taking us within touching distance…  

    … of delivering our manifesto promise to build 1.5 million homes in England in this parliament. 

    [political content redacted]

    The impact on our economy goes further still.  

    [political content redacted]

    We need economic growth.  

    So I can today confirm… 

    … that the effect of our growth policies… 

    … including our planning reforms… 

    … means an additional £3.4 billion to support our public finances and our public services by 2029-30. 

    The proceeds of growth. 

    [political content redacted]

    Mr Speaker, earlier this week…  

    … we provided an additional £2bn of investment in social and affordable homes next year… 

    … delivering up to 18,000 new homes… 

    … and allowing local areas to bid for new developments across our country… 

    … including sites in Thanet, in Sunderland and in Swindon.  

    More security for families across our country. 

    [political content redacted]

    And to build these new homes… 

    … we need people with the right skills. 

    Earlier this week, my Right Honourable Friend the Education Secretary announced more than £600m… 

    … to train up 60,000 more construction workers…  

    … including with 10 new Technical Excellence colleges across every region of our country… 

    … giving working people the chance to fulfil their potential.  

    New opportunities for our young people. 

    [political content redacted]

    Mr Speaker, all this is just the start.  

    The Planning and Infrastructure Bill passed its second reading on Monday. 

    [political content redacted]

    Once this Bill completes its passage… 

    … it will help deliver the homes and infrastructure our country badly needs. 

    [political content redacted] 

    And today, I can confirm to the House… 

    … that the OBR have upgraded their growth forecast next year… 

    … and every single year thereafter…  

    … with GDP growth of 1.9% in 2026, 1.8% in 2027, 1.7% in 2028, and 1.8% in 2029.  

    Mr Speaker, 

    By the end of the forecast… 

    … our economy is larger compared to the OBR’s forecast at the time of the Budget.

    [political content redacted]

    But Mr Speaker, this isn’t just about lines on a graph. 

    It is about improving people’s lives. 

    Working people are still feeling the pinch after a cost of living crisis [political content redacted] that saw prices spiral. 

    So I am pleased that the OBR confirm today … 

    … that Real Household Disposable Income…  

    … will now grow this year at almost twice the rate expected in the autumn.  

    [political content redacted]

    … and after taking into account inflation… 

    … the OBR say today… 

    … that people will be on average over £500 a year better off under this [political content redacted] government. 

    That will mean more money in the pockets of working people. Higher living standards. 

    [political content redacted]

    Mr Speaker, the world is changing. 

    We can see that… 

    … and we can feel it. 

    A changing world demands a government that is on the side of working people. 

    Acting in their interest. 

    Acting in the national interest.  

    Not retreating from challenges.  

    Not stepping back.  

    But a government with the courage to step up…  

    … to secure Britain’s future…  

    … and to seize the opportunities that are out there before us. 

    I am impatient for change, the British people are impatient for change, [political content redacted].

    And we are beginning to see change happen.  

    Our Plan for Change is working. 

    Defence spending is rising. 

    Waiting lists are falling. 

    Wages are up.  

    Interest rates are cut. 

    [political content redacted]

    And today, Mr Speaker… 

    … the OBR confirm… 

    … that our plan to get Britain building… 

    … will drive growth in our economy… 

    … and put more money in people’s pockets. 

    There are no quick fixes. 

    But we have taken the right choices.  

    [political content redacted]

    Delivering security for our country and security for working people.  

    That is what drives this government. 

    That is what drives me as Chancellor. 

    And that is what drives the choices that I have set out today.  

    And I commend this statement to the House.

    Updates to this page

    Published 26 March 2025

    MIL OSI United Kingdom –

  • MIL-OSI Global: Blaming absent dads for the crisis of masculinity is too simplistic – many men want to be more involved

    Source: The Conversation – UK – By Anna Tarrant, Professor of Sociology, University of Lincoln

    imtmphoto/Shutterstock

    Fatherlessness and a lack of male role models are often cited as causes of an apparent crisis of masculinity among boys. This is not new. These arguments have been made for nearly half a century, both in the UK and the US, as the root of a multitude of social issues.

    These are key ideas in the Lost Boys report from thinktank the Centre for Social Justice, cited recently by Gareth Southgate in his Richard Dimbleby lecture on the issues facing boys. In this report, concerns about fatherlessness and a lack of male role models for boys in their homes and schools loom large as part of an explanation about why boys today are “lost” and struggling.

    I am a researcher who works with boys and fathers, especially with those in low-income communities. I have long feared that these explanations fall short. In the report, boys are presented as passive victims of inequalities. Men, as fathers and educators, are considered to be to blame when they are deemed absent, or seen as a way to solve the societal ills that influence and shape the nation’s boys.

    But simply asking fathers to step up and do better isn’t enough. In my research with men as caregivers, including young fathers aged 25 and under, I’ve found they want to be involved in their children’s lives but face numerous challenges that can make this more difficult.

    Whether struggling to secure qualifications and find employment or family-suitable housing that is near to or safe for their children, they come up against serious barriers to support with their parenting.

    The UK remains woefully ill-equipped to support fathers to be involved and present in the lives of their children. Not only do we have among the worst parental leave offers in Europe, but family and public health services do not routinely engage with fathers as effectively as they should.

    Diverse family life

    Lost Boys also presents a bleak picture of family life in Britain. It highlights what is referred to, rather sensationally, as an epidemic of family breakdown.

    The report notes there are “just shy of half of young Britons growing up with only one biological parent … with close to nine out of ten of these being single mothers”. If absent fathers are the problem, then this concern over fatherlessness also presents single mothers bringing up boys as lacking.



    Read more:
    Having a single parent doesn’t determine your life chances – the data shows poverty is far more important

    Further, in the emphasis on the absence of biological fathers from households, it is assumed that the diverse ways we now live family life are also a problem. This obscures the very meaningful family connections that are forged through co-habiting, step-parenting, single-sex parenting and other forms of care – which men also engage in.

    Including fathers

    Working-class communities often bear the brunt of concerns about a gender crisis. Men in these communities, through labels like feckless and absent dads, are portrayed as failing fathers. This often happens despite limited engagement with them to understand their experiences.

    Fathers may face barriers, such as access to nearby work and housing, that prevent them from spending as much time with their children as they want.
    Alex Linch/Shutterstock

    My research with boys and fathers over the last decade has shown there are greater benefits when fathers are directly involved in addressing the systemic challenges shaping their parenting experiences. We have therefore involved fathers in creating dads’ groups and online parenting support, where they challenge negative views and advocate for progressive societal support for boys and men.

    Shifting away from the concept of “fatherless families”, this work promotes the idea of creating societies that are father-inclusive and better at supporting men as fathers. This might be by advocating for increased time to bond with their children through well-funded and affordable parental leave, or through more effective public health and community-based support for fathers through pregnancy and parenthood.

    Focusing on including fathers means we can explore ways that societies can better support men to be involved in caregiving – and role modelling.

    To do this requires collective and collaborative efforts. Building partnerships and fostering dialogues across diverse sectors including education, health, social services, local government and charities – as well as with parents and communities – we are better able to respond to the complexities of the issues boys and men navigate. My work demonstrates the value of developing systemic solutions that are rooted in lived experience and professional insight.

    The issues boys and men navigate are diverse, messy and reflective of the complex machinery of our social world. They’re linked to socioeconomic inequalities, geography and social history.

    Meaningfully addressing the problems boys and young men encounter that play out in our homes, schools and online means broadening the scope of change beyond individuals and families. It means creating the social conditions for happier, healthier journeys into and through adulthood and fatherhood.

    Anna Tarrant receives funding from UK Research & Innovation.

    – ref. Blaming absent dads for the crisis of masculinity is too simplistic – many men want to be more involved – https://theconversation.com/blaming-absent-dads-for-the-crisis-of-masculinity-is-too-simplistic-many-men-want-to-be-more-involved-252408

    MIL OSI – Global Reports –

  • MIL-OSI Global: Politicians’ attacks on immigrants lack solid evidence: New data set the record straight

    Source: The Conversation – Canada – By Edward Koning, Associate professor, University of Guelph

    Immigration dominated recent election campaigns in countries that include the United Kingdom, France, Germany and the United States.

    The subject sparked particularly fierce debates over welfare. While some politicians called for more support for typically economically vulnerable immigrant populations, others argued that welfare systems are already too generous and accommodating to newcomers.

    Unfortunately, many debates on this subject lack solid evidence. A newly launched data set could change that. The data, which provides systematic information on immigrants’ access to social programs across different countries and different time periods, can help ground some of these discussions in empirical reality.

    The data set reveals key insights. One striking observation is that the countries where politicians most frequently complain that immigrants are treated too generously are among the most exclusionary from a comparative perspective.

    It also shows that although most welfare systems were moving towards greater inclusion up until the 2010s, since then social programs in many countries have become more inclusive in some respects but more exclusive in others.

    A new data set for 22 countries

    The data set, called the Immigrant Exclusion from Social Programs Index (IESPI), measures how much immigrants’ access to pensions, health care, unemployment benefits, housing benefits, social assistance and active labour market programs compares to that of native-born citizens.

    The index uses 32 indicators to measure factors like whether immigrants have to have resided in the country for a certain period of time, held a specific type of residence status, or met standards of successful integration before they can access social programs.

    The data covers the years 1990 to 2023 and includes information for 22 countries.

    Complaints about inclusion

    In the United States, President Donald Trump has voiced concerns about immigrants’ welfare access repeatedly, both during his first term and since taking office again this year.

    In last year’s British election, a staple of Rishi Sunak’s campaign was the insistence that immigrants threaten the sustainability of the welfare state.

    On the other side of the North Sea, the political party that won the Dutch elections made the argument that immigrants are “pampered” a central feature of its election platform.

    Ironically, all three of these countries are among the most exclusionary, according to the most recent IESPI data, as the graph below illustrates. (Note that the IESPI is organized such that a value of 0 is maximally inclusionary and 100 is maximally exclusionary.)

    Inclusionary trends have ended

    A second observation is that the era of social welfare systems becoming more inclusive for immigrants has ended.

    From 1990 until the 2010s, most western welfare systems were removing barriers for immigrant access to social programs. But since then, levels of immigrant welfare exclusion have not changed dramatically over time.

    Closer inspection shows that this picture of stability since the 2010s hides negative trends in different social programs.

    On the one hand, health-care programs and active labour market policies have gradually become more inclusionary. More and more countries have been making health-care services accessible for vulnerable immigrant populations, and rolling out targeted programs to improve newcomers’ chances on the labour market.

    On the other hand, social assistance policies have generally become more exclusionary over time. Many countries have intensified restrictions for recent arrivals, migrants without permanent residence status and migrants who cannot demonstrate successful integration.

    Large differences in historical trajectories

    When we look beyond aggregate trends, we also note very different trajectories in different countries.

    In some countries (Austria, Germany, Finland, Iceland, Malta, New Zealand, Portugal and Spain), social programs have become consistently more inclusionary.

    Other countries (Canada, Luxembourg and Sweden) have also undergone an inclusionary development, although at a more modest pace of change.

    In a third set of countries (Australia, Belgium, Denmark, France, Ireland, Italy, Norway and Switzerland), policies initially became more inclusionary but this trend was halted or reversed around 2010. The social programs of three other countries (the Netherlands, the United Kingdom and the United States), finally, have consistently become more exclusionary over time.

    These comparisons within the IESPI data set hopefully enable us to make sense of the frequently charged nature of discussions about immigrants’ access to social programs.

    Most obviously, they show we should be cautious when listening to some of the politicians who are most critical of immigrant welfare access, like Donald Trump, Rishi Sunak and Geert Wilders.

    If their arguments that exclusionary reforms in their countries are nothing but reasonable adjustments to overly generous approaches ever had any merit, that merit is quickly evaporating.

    Edward Koning received funding from the Social Science and Humanities Research Council of Canada to collect the data for this project.

    – ref. Politicians’ attacks on immigrants lack solid evidence: New data set the record straight – https://theconversation.com/politicians-attacks-on-immigrants-lack-solid-evidence-new-data-set-the-record-straight-251853

    MIL OSI – Global Reports –

  • MIL-OSI Global: Mississippi’s education miracle: A model for global literacy reform

    Source: The Conversation – USA – By Harry Anthony Patrinos, Professor of Education Policy, University of Arkansas

    Mississippi’s reforms have led to significant gains in reading and math, despite the state being one of the lowest spenders per pupil in the U.S. Klaus Vedfelt/Getty Images

    In a surprising turnaround, Mississippi, once ranked near the bottom of U.S. education standings, has dramatically improved its student literacy rates.

    As of 2023, the state ranks among the top 20 for fourth grade reading, a significant leap from its 49th-place ranking in 2013. This transformation was driven by evidence-based policy reforms focused on early literacy and teacher development.

    The rest of the country might want to take note.

    That’s because Mississippi’s success offers a proven solution to the reading literacy crisis facing many states – a clear road map for closing early literacy gaps and improving reading outcomes nationwide.

    As an expert on the economics of education, I believe the learning crisis is not just an educational issue. It’s also economic.

    When students struggle, their academic performance declines. And that leads to lower test scores. Research shows that these declining scores are closely linked to reduced economic growth, as a less educated workforce hampers productivity and innovation.

    The Mississippi approach

    In 2013, Mississippi implemented a multifaceted strategy for enhancing kindergarten to third grade literacy. The Literacy-Based Promotion Act focuses on early literacy and teacher development. It includes teacher training in proven reading instruction methods and teacher coaching.

    Relying on federally supported research from the Institute of Education Science, the state invested in phonics, fluency, vocabulary and reading comprehension. The law provided K-3 teachers with training and support to help students master reading by the end of third grade.

    It includes provisions for reading coaches, parent communication, individual reading plans and other supportive measures. It also includes targeted support for struggling readers. Students repeat the third grade if they fail to meet reading standards.

    The state also aligned its test to the NAEP, or National Assessment of Educational Progress, something which not all states do. Often referred to as “The Nation’s Report Card,” the NAEP is a nationwide assessment that measures student performance in various subjects.

    Mississippi’s reforms have led to significant gains in reading and math, with fourth graders improving on national assessments.

    I believe this is extremely important. That’s because early reading is a foundational skill that helps develop the ability to read at grade level by the end of third grade. It also leads to general academic success, graduating from high school prepared for college, and becoming productive adults less likely to fall into poverty.

    Research by Noah Spencer, an economics doctoral student at the University of Toronto, shows that the Mississippi law boosted scores.

    Students exposed to it from kindergarten to the third grade gained a 0.25 standard deviation improvement in reading scores. That is roughly equivalent to one year of academic progress in reading, according to educational benchmarks. This gain reflects significant strides in students’ literacy development over the course of a school year.

    Another study has found an even greater impact attributed to grade retention in the third grade – it led to a huge increase in learning in English Language Arts by the sixth grade.

    But the Mississippi law is not just about retention. Spencer found that grade retention explains only about 22% of the treatment effect. The rest is presumably due to the other components of the measure – namely, teacher training and coaching.

    Other previous research supports these results across the country.

    Adopting an early literacy policy improves elementary students’ reading achievement on important student assessments, with third grade retention and instructional support substantially enhancing English learners’ skills. The policy also increases test scores for students’ younger siblings, although it is not clear why.

    Moreover, third grade retention programs immediately boost English Language Arts and math achievements into middle school without disciplinary incidents or negatively impacting student attendance.

    These changes were achieved despite Mississippi being one of the lowest spenders per pupil in the U.S., proving that strategic investments in teacher development and early literacy can yield impressive results even with limited resources.

    The global learning crisis

    Mississippi’s success is timely. Millions of children globally struggle to read by age 10. It’s a crisis that has worsened after the COVID-19 pandemic.

    Mississippi’s early literacy interventions show lasting impact and offer a potential solution for other regions facing similar challenges.

    In 2024, only 31% of U.S. fourth grade students were proficient or above in reading, according to the NAEP, while 40% were below basic. Reading scores for fourth and eighth graders also dropped by five points compared with 2019, with averages lower than any year since 2005.

    In 2013, Mississippi ranked 49th in fourth grade reading scores.
    Klaus Vedfelt/Getty Images

    Mississippi’s literacy program provides a learning gain equal to a year of schooling. The program costs US$15 million annually – 0.2% of the state budget in 2023 – and $32 per student.

    The learning gain associated with the Mississippi program is equal to about an extra quarter of a year. Since each year of schooling raises earnings by about 9%, then a quarter-year gain means that Mississippi students benefiting from the program will increase future earnings by 2.25% a year.

    Based on typical high school graduate earnings, the average student can expect to earn an extra $1,000 per year for the rest of their life.

    That is, for every dollar Mississippi spends, the state gains about $32 in additional lifetime earnings, offering substantial long-term economic benefits compared with the initial cost.

    The Mississippi literacy project focuses on teaching at the right level, which focuses on assessing children’s actual learning levels and then tailoring instruction to meet them, rather than strictly following age- or grade-level curriculum.

    Teaching at the right level and a scripted lessons plan are among the most effective strategies to address the global learning crisis. After the World Bank reviewed over 150 education programs in 2020, nearly half showed no learning benefit.

    I believe Mississippi’s progress, despite being the second-poorest state, can serve as a wake-up call.

    Harry Anthony Patrinos does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Mississippi’s education miracle: A model for global literacy reform – https://theconversation.com/mississippis-education-miracle-a-model-for-global-literacy-reform-251895

    MIL OSI – Global Reports –

  • MIL-OSI Australia: Interview – Triple J Hack with Dave Marchese

    Source: Murray Darling Basin Authority

    E&OE TRANSCRIPT

    PRESENTER DAVE MARCHESE: So, let’s get into this a bit more now with Anne Aly, the Youth Minister. Minister, thank you very much for joining us on Hack. The government hoping to pass its tax cuts for all Australians. The Opposition, calling them a cruel hoax, says Labor’s bribing voters. Are you bribing voters?

    MINISTER ANNE ALY: No, these are tax cuts. And I think that every Australian out there who knows the value of the dollar, particularly for young people, for whom cost of living is a particularly acute issue that’s impacting on them every day, knows exactly what it means to have an extra dollar or two or three or four in your pay packet. These are pretty significant tax cuts. They build on the tax cuts that we already gave. And everyone will remember that if it was up to the Coalition, people earning under $45,000 —which is a lot of young people —would have got absolutely zero, zilch, nothing, nada in terms of tax cuts, according to their plan for tax cuts. So, they voted against the tax cuts today. Shows exactly where their heads are at when it comes to giving a little bit of cost-of-living relief.

    MARCHESE: But is it fair everyone gets them? Like, do you think it’s fair that a nurse is going to be paying for a tax cut for someone like an MP, like a politician, you.

    ALY: Well, we all pay tax according to what we earn. One of the important things to note is bringing the lower tax bracket down to 14,000. And I think, you know, I think most Australians understand the more you earn, the more tax you pay. So, if you’re going to get a tax cut, of course it’s going to be a bigger tax cut.

    MARCHESE: But I guess people are asking, why not give more relief to those who need it, those who below the poverty line? Because there are some people out there saying, we don’t need this.

    ALY: Whether it’s like the largest, you know, increase in rent assistance, 45 per cent increase in rent assistance. Whether it’s increasing JobSeeker, Youth Allowance, ABSTUDY, Austudy. You know. The increases that we’ve made to the minimum wage, the increases that we’ve made in industrial relations to allow wages to increase. Whether it’s energy bill, rebates, medicines, cost of medicines, bringing the cost of medicines down, particularly also for young people, the HECS debt, saving them an average of $5,500. So, it’s not just the tax cuts in isolation. And I don’t think you could ever just give cost of living relief through one mechanism.

    MARCHESE: You mentioned HECS, which is obviously something a lot of our listeners are really keen to hear reform on. You’re promising to cut a further 20 per cent off all student loan debts, but only if you’re re-elected. Why do people have to wait for this? Why do students have to wait? Because the government’s had three years.

    ALY: I think it’s got to do with like setting everything up and everything like that. To be honest, you know, that’s more of a question for the Minister for Education around the timing of it as well…

    MARCHESE: It does affect young people though, and you’re the Youth Minister.

    ALY: It does, but the thing is. Yeah, yeah, you’re right there, Dave, I’ll give you that one. But look, I think the thing is that we’ve been doing a whole lot of reform across the whole education sector. Now when you get into government, there’s a whole lot of stuff that you have to do and you do them – you know, sometimes it’s incremental, sometimes you can do things straight away, sometimes you can’t do things straight away. I tell you what, if I had a magic wand or some kind of superpower, I would have loved to have done everything straight away.

    MARCHESE: But do you understand why some voters might think, well, it is a bribe. It’s only if I vote that I get this relief that I’ve needed not just this year but for years.

    ALY: I guess that is kind of reflective of also a more broader cynicism towards politics where every measure that we do is, you know, put into the basket of, oh, well that’s just a bribe or that’s just a bribe…

    MARCHESE: Or is it people just saying you’ve had three years and why can’t we see these changes in your term of government? Is it time to give someone else a go?

    ALY: Well, if they give someone else a go, that someone else is Peter Dutton. I can guarantee you he’s not going to give you any cuts off your HECS debt. I can guarantee you he’s not going to give you any cost-of-living relief. I can guarantee you he’s not going to fix the indexation or give you a fee-free TAFE. In fact, they voted against all of those things.

    MARCHESE: Alright, this is Hack. I’m Dave Marchese getting into the details of the budget with Youth Minister Anne Aly. Hearing from you on the text line. Someone says doing better than the coalition is not a flex. Someone else ‘This is so disappointing and disgusting, never ever voting Labor or Liberal again. And I know a lot of young people doing the same.’ Minister hearing loud and clear from the Hack audience, a lot of them asking about the long term because it is deficits as far as the eye can see. Young Australians are going to be the ones dealing with all this. Is there any plan for how we’re going to pay all of this off in the years ahead?

    ALY: Yeah, you know, I hear the term deficit and surplus. I’ll remind everyone that we did deliver two surpluses in a row and that there are a lot of global headwinds that contribute to the deficits and that the Treasurer has been very upfront in saying that we will be looking at deficits largely due to a lot of global kind of economic trends and activities. I’m not, you know, for the young people that I speak to, Dave, and I do speak to a lot of young people, not just in this portfolio. The starkest and most acute issue is what is impacting on their life currently and that is cost-of-living and that is being able to have the kind of life that they see that their parents had.

    MARCHESE: But that won’t be possible if there’s all this debt that has to be paid off later. Like Australia is spending $50 billion more per year than we’re collecting in tax. Shouldn’t we be seeing some sort of structural changes in the budget that will paint a picture of how this is all going to be dealt with in the future, how young Australians are going to deal with this.

    ALY: Well, the Treasurer has talked about how we’ve made some structural reform and structural repair of the budget too in terms of banking revenue back into the budget and continuing to bank revenue into the budget as well. What I think I would say is that, you know, in some senses deficit is, as the Treasurer said, unavoidable when there are global kind of economic headwinds at play that we have little control over. The role of a government, a responsible government, particularly at a time where there is high inflation and where people are facing real cost of living pressures, is to really ensure that we give that cost of living, ease those cost-of-living pressures without putting upward pressure on inflation. And we’ve managed to bring inflation down. I think one of the things that you’re talking about here is, you know, long term vision. I would say to you, and I would probably agree with the point that it’s when you have three year terms in government which actually effectively work out to about two and a half years of actually being able to work in your role as a Minister or as a representative in Parliament, it’s very difficult to instigate and put into place really long term reform.

    MARCHESE: But that is the system that we have, and we’ve had for a long time. And I mean, some of the concern here that we’re hearing from listeners. You’ve got someone on Hack’s Instagram now, Danny, that says, you know, ‘This isn’t a budget, it’s a slap in the face’, is that people think that they’ve been promised something that hasn’t been delivered. That when Anthony Albanese was pitching to be in government at the last election, he was saying nobody would be left behind. But the reality is now we’ve had the biggest fall in disposable income in the OECD over the past two years, that people are feeling worse off than they were a few years ago at that last election. How do you convince young Australians to vote for you with all of that in mind?

    ALY: Oh, we’re not sugarcoating anything here, Dave. We know that people are doing it tough. We know that. But I would say to young people and indeed, you know, all Australians, have a look at what we have done. Have a look at what we have managed to achieve in a situation where many, many other countries have been unable to achieve what we have. And, you know, it was, Peter Dutton said it the other day, he said judge people by their actions. And I would say if you were to judge the Labor government over the last two and a half years by the actions that we have taken to stave off for Australians some of the most egregious and worst impacts that we could have had, with global inflation being what it is, with the global economic headwinds being what they are, I think that if you looked at what we’ve done I think we have a good story to tell. By no means does that mean everything is hunky dory and everyone’s doing, you know, ‘beauty one mate’. But it does mean that we are conscious of people doing it tough. There’s more work to do.

    MARCHESE: I didn’t expect you to quote Peter Dutton in your pitch to voters, Anne Aly. But look, thank you very much for joining us. Youth Minister Anne Aly appreciate you coming on Hack.

    ALY: Thaks so much Dave. Appreciate you having me on.

    MIL OSI News –