Category: Child Poverty

  • MIL-OSI United Kingdom: Nuclear energy has no role in Scotland’s green future

    Source: Scottish Greens

    Nuclear energy is costly and toxic and will do nothing to cut bills.

    New nuclear power would cost Scottish households while diverting funding and resources from real climate action, says Scottish Green Co-leader Patrick Harvie.

    Speaking ahead of a Scottish Government debate on Scotland’s renewable future, Mr Harvie warned that Labour’s focus on nuclear power would risk increasing household bills and would be a gift to a toxic industry that is not offering the solutions we need.

    The UK Labour government has proposed building new nuclear power plants across the UK touting so-called ‘small modular reactors’, despite one never having been built and the long-running record of the nuclear power industry running over schedule and budget.

    The first nuclear power plant to be built in the UK for over 30 years, at Hinkley Point, is nearing £28 billion over budget and despite the construction phase beginning in 2016, it will likely not generate any electricity until at least 2029 but possibly 2031.

    Mr Harvie said:

    “This cold war era obsession with nuclear power shows just how out of touch Labour are with the real crisis we face. It is costly, takes years to go online and will leave a long and toxic legacy for future generations.

    “New nuclear power would cost billions of pounds at a time when Labour are telling the public that there is no money to tackle poverty or keep pensioners warm. These new reactors would do nothing to reduce the bills that Labour promised to cut during the election.

    “Hinkley Point is the perfect example of everything wrong with nuclear power. Its construction has been a disaster for the environment, requiring masses more concrete and steel than initially thought and it is now running significantly over budget and behind schedule. Does Keir Starmer really think the people want more of this?

    “It is a distraction from doing the real work that is so important in terms of investing in clean, green renewable energy that will make a big difference for people and planet.

    “Keir Starmer seems to have been sold up the river by his friends in the nuclear power industry who promise modular reactors, which have never been built to any kind of scale and don’t remove the major problem of highly toxic nuclear waste that will still scar our landscape for centuries to come.

    “Scotland can have a positive and prosperous green future, but nuclear energy has no part in it. We have the resources for a renewables revolution but we need all governments to commit to it rather than taking a big backwards step with nuclear.”

    MIL OSI United Kingdom

  • MIL-OSI Economics: Asian Impact Webinar 89: Mapping the Unpaid Care Work Economy in Asia

    Source: Asia Development Bank

    The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

    Headquarters

    6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

    MIL OSI Economics

  • MIL-OSI Economics: Independent Evaluation Report Urges ADB to Adopt a More Systems-Based Approach in Education Sector Operations to Better Address Regional Education Challenges

    Source: Asia Development Bank

    MANILA, PHILIPPINES (4 March 2025) — The Asian Development Bank (ADB) should adopt a more systems-based approach to better address the complex issues facing education systems in the region, according to an Independent Evaluation Report. The evaluation assesses ADB’s contribution to education as a tool for poverty reduction and inclusive growth from 2011 to 2023.

    “ADB is recognized by our developing member countries as a trusted and reliable partner, delivering successful projects and providing essential support to enhance education systems across the region. However, to be more transformative, ADB should prioritize enhanced learning quality and system-wide reforms and invest in strategic partnerships to provide more impactful support for education,” said the Director General of ADB’s Independent Evaluation Department Emmanuel Jimenez.

    Countries in Asia and the Pacific have made impressive progress in expanding access to education over recent decades. However, the region still faces challenges in ensuring equitable access, improving learning outcomes, and aligning the skills provided by education systems with the demands of the modern economy, the evaluation notes. As a result, many economies experience a surplus of graduates while facing skills shortages. These problems were aggravated by the COVID-19 pandemic.

    Despite aiming to expand education sector lending to 6%–10% by 2024, ADB’s education lending is at 5%, with Bangladesh, the Philippines, and Sri Lanka accounting for almost half of the commitments. Growth has been hindered by insufficient resources, staffing, and structural changes, particularly in countries without existing education portfolios.

    “Enhancing the effectiveness of sector diagnostics and strategic planning at the country level is crucial. Improved diagnostics will help ADB identify policy and institutional constraints, optimize resource allocation, and better support targeted, innovative, and impactful interventions in education across developing member countries,” said evaluation team leader Ari Perdana.

    Education will continue to play a pivotal role in shaping inclusive and sustainable development across Asia and the Pacific. This evaluation provides a retrospective assessment of ADB’s efforts and offers forward-looking guidance on how ADB can enhance its support for this critical sector.

    ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—49 from the region.

    MIL OSI Economics

  • MIL-Evening Report: Without change, half of Australian kids and adolescents will be overweight or obese by 2050

    Source: The Conversation (Au and NZ) – By Jessica Kerr, Research Fellow, Adolescent Population Health and Obesity Epidemiology, Murdoch Children’s Research Institute

    World Obesity Federation

    Since the 1990s, the proportion of the world’s population who are overweight (with a body mass index of 25–30) or obese (with a body mass index of 30 or above) has doubled.

    If current patterns continue, we estimate that by 2050, 30% of the world’s children and adolescents (aged five to 24 years) will be overweight or obese, according to our new research in The Lancet.

    By 2050, we forecast that 2.2 million Australian children and adolescents will be living with obesity. A further 1.6 million will be overweight. This is a combined prevalence of 50% – and an increase of 146% between 1990 and 2050.

    Already in 2017–18, excess weight and obesity cost the Australian government A$11.8 billion. The projected disease burden will add billions of dollars to these health costs.

    So how did we get here? And most importantly, what can we do to turn this trajectory around?

    It’s not just about health problems later in life

    Living with obesity increases the likelihood of living with disability and dying at a young age.

    Obesity doesn’t just cause health problems later in life. Living with obesity increases the chance of developing many serious diseases during childhood or adolescence, including fatty liver disease, type 2 diabetes and hypertension (high blood pressure).

    Due to weight-related teasing, bullying and stigma, obesity can also cause problems with mental health, and school and community engagement.

    Some of the negative health effects of obesity can be reversed if young people return to a normal weight.

    But reducing your weight from an obese BMI (30-plus) to a normal weight BMI (18.5–25) is very difficult. As a result, 70–80% of adolescents with a BMI of 30 or above live their adult years with obesity.

    So it’s important to prevent obesity in the first place.

    How did this happen?

    Obesity is often blamed on the individual child, parent or family. This is reflected in significant weight-based stigma that people in larger bodies often face.

    Yet the rapidly changing patterns of obesity throughout the world reinforce the importance of viewing it as a society-level problem.

    The drivers of the obesity epidemic are complex. A country’s increasing obesity rates often overlap with their increasing economic development.

    Economic development encourages high growth and consumption. As local farming and food supply systems become overtaken by “big-food” companies, populations transition to high-calorie diets.

    Meanwhile, our environments become more “obesogenic”, or obesity-promoting, and it becomes very difficult to maintain healthy lifestyles because we are surrounded by very convenient, affordable and addictive high-calorie foods.

    Obesity arises from a biological response to living in these environments.

    Some people are more negatively affected by living in these environments and gain more body weight than others. As our recent study showed, compared to those born with low genetic risk, adolescents who are born with a high genetic risk of developing obesity are more likely to become overweight or obese when living in poverty.

    Other research shows those with a high genetic risk are more likely to gain weight when living in obesity-promoting environments.

    Can we fix this problem?

    The steepest increase in the proportion of young people with obesity is expected to be in the coming years. This means there is an opportunity to address this public health issue through bold actions now.

    Some young people with severe obesity should be provided access to funded, stigma-free team-based weight-management health care. This may include:

    • access to GPs and nurses for lifestyle advice about diet and exercise

    • anti-obesity medications such as semaglutide

    • weight-loss surgery.

    Changes need to reach older and younger adolescents.
    Murrr Photo/Shutterstock

    But to reach all young people, it is the overarching systems, not people, that need to change.

    Success will be greatest if policies change multiple parts of the environmental systems that young people live in, including schools, food systems, transport systems and built environments. These changes will also reach older adolescents, whose rate of obesity continues to increase.

    It is also important to target the commercial determinants of obesity. Strategies could include:

    This should be coupled with changes to the built environment and urban planning, such as increasing green space, footpaths and walkability.

    Because obesity doesn’t belong to any one part of government, action can fall through the cracks. Although there are significant efforts being made, action requires coordinated investments from numerous government portfolios – health, education, transport, urban planning – at local, state and national levels.

    Governments should commit to an immediate five-year action plan to ensure we don’t fail another generation of children and adolescents.

    Jessica Kerr has received funding from the Australian National Health and Medical Research Council. This research was also funded by the Gates Foundation.

    Peter Azzopardi receives funding from NHMRC.

    Susan M. Sawyer has received funding from National Health and Medical Research Council and the Wellcome Trust.

    ref. Without change, half of Australian kids and adolescents will be overweight or obese by 2050 – https://theconversation.com/without-change-half-of-australian-kids-and-adolescents-will-be-overweight-or-obese-by-2050-250520

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Russia: IMF Executive Board Concludes 2025 Article IV Consultation with Malaysia

    Source: IMF – News in Russian

    March 3, 2025

    Washington, DC: On February 25, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Malaysia and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]

    Malaysia’s economic performance has improved significantly in 2024. The economy grew by 5.2 percent (y/y) in the first three quarters of 2024, supported by strong private consumption, buoyant investment, improvements in external demand for electrical and electronic products, and a recovery in tourism. Labor market conditions have been strong, with the unemployment rate low at 3.2 percent in 2024Q3. Meanwhile, inflation has been stable around 2 percent, and the ringgit appreciated against the U.S. dollar by 2.6 percent in 2024.

    Current policies are focused on rebuilding fiscal buffers, augmenting growth potential, and strengthening social protection while preserving macroeconomic and financial stability. The landmark Public Finance and Fiscal Responsibility Act (FRA), enacted in 2023, aims to strengthen fiscal management and governance. Fiscal consolidation continued in 2024, with the overall fiscal deficit estimated to have declined from 5.0 percent of GDP in 2023 to the budget target of 4.3 percent of GDP in 2024, supported by subsidy reforms and strengthening of the sales and service tax. Bank Negara Malaysia (BNM) has kept the Overnight Policy Rate (OPR) unchanged at 3.0 percent since May 2023. Under the Economy MADANI Framework, the authorities have developed a set of concerted policy frameworks that focus on increasing incomes, addressing climate change, promoting digitalization, and enhancing governance.

    Executive Board Assessment

    In concluding the Article IV consultation with Malaysia, Executive Directors endorsed the staff’s appraisal as follows:

    Malaysia’s favorable economic conditions provide a window of opportunity to build macroeconomic policy buffers and accelerate structural reforms. Malaysia’s strong growth momentum is expected to be sustained in the near term, with growth projected at 4.7 percent in 2025. Inflation, which eased to 1.8 percent in 2024, is projected to increase to 2.6 percent in 2025 on account of the anticipated implementation of gasoline subsidy reforms, before moderating to 2.3 percent in 2026. Malaysia’s external position in 2024 is preliminarily assessed to be stronger than the level implied by medium-term fundamentals and desirable policies.

    Risks to growth, mostly external, are tilted to the downside, while inflation risks are tilted to the upside. Downside external risks include deepening geoeconomic fragmentation, a growth slowdown in major trading partners, and intensification of geopolitical conflicts, while upside growth risks include faster implementation of investment projects. The upside risks to the inflation outlook stem from global commodity price shocks and potential wage pressures from increases in minimum wage and civil servants’ pay.

    Fiscal consolidation should continue to rebuild buffers and achieve the medium-term targets set under the FRA. Staff recommends achieving a small structural primary balance by 2027. Building on successful subsidy reforms, including for electricity and diesel, staff recommends gradually phasing out remaining fuel subsidies. Revenue mobilization efforts toward a more broad-based and efficient tax system are warranted. Reintroducing the GST could help achieve this goal. The associated impact of fiscal reforms on vulnerable households should be mitigated by well-targeted cash transfers. Staff welcomes the historic enactment of the FRA and recommends its swift and thorough implementation.

    The current neutral monetary policy stance is appropriate. Going forward, monetary policy should remain data dependent. BNM should stand ready to tighten monetary policy if upside inflation risks materialize. Maintaining exchange rate flexibility is essential.

    Financial systemic risks appear contained, and the financial sector remains sound. Banks’ capital and liquidity positions are robust. Credit growth, corporate and household balance sheets, and real estate markets do not pose systemic risks at this juncture. Continued vigilance is warranted against pockets of more highly leveraged borrowers, interlinkages between banks and non-bank financial institutions, and climate and cyber risks—although spillover risks from these areas remain contained. Given the strong growth and accommodative financial conditions, pre-emptive broadening of the macroprudential policy toolkit could be considered.

    Staff encourages swift implementation of the structural reform initiatives to enhance productivity and inclusive growth. The ongoing development of the PADU digital registry can help strengthen social safety nets and public service delivery. Investment incentives to promote high-growth and high-value industries should be well-targeted and ring-fenced. Further efforts are warranted toward Malaysia’s transition to net-zero emissions and readiness for Artificial Intelligence. Staff welcomes the authorities’ efforts to strengthen governance and the anti-corruption framework.

    Selected Economic and Financial Indicators, 2020–30

    Nominal GDP (2023): US$399.7 billion

         

     Population (2023): 33.4 million

               

    GDP per capita (2023, current prices): US$11,967

         

     Poverty rate (2019, national poverty line): 0.2 percent

           

    Unemployment rate (2023, period average):  3.4 percent

         

     Adult literacy rate (2019): 95.0 percent

             
                             

    Main domestic goods exports (share of total domestic exports, 2023): Machinery and Transport Equipment (45.6 percent), Manufactured Goods and Miscellaneous Manufactured Articles (19.0 percent), and Mineral Fuels, Lubricants etc. (16.5 percent).

                 
           
               

    Proj.

       

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

    2030

    1/

                             

    Real GDP (percent change)

     

    -5.5

    3.3

    8.9

    3.6

    5.0

    4.7

    4.4

    4.0

    4.0

    4.0

    4.0

    Total domestic demand

     

    -4.8

    3.8

    9.5

    4.7

    6.1

    4.7

    4.0

    3.6

    3.6

    3.6

    3.4

    Private consumption

     

    -3.9

    1.8

    11.3

    4.7

    5.3

    4.5

    3.9

    3.4

    3.9

    3.8

    3.7

    Public consumption

     

    4.1

    5.8

    5.1

    3.3

    4.3

    3.5

    2.7

    2.4

    2.3

    2.3

    2.3

    Private investment

     

    -11.9

    2.8

    7.2

    4.6

    12.0

    6.0

    5.1

    4.0

    4.0

    4.0

    4.0

    Public gross fixed capital formation

     

    -21.2

    -11.0

    5.3

    8.6

    11.2

    4.0

    2.8

    2.3

    2.1

    2.0

    2.1

    Net exports (contribution to growth, percentage points)

     

    -1.0

    -0.3

    -0.1

    -0.9

    -0.8

    0.2

    0.5

    0.6

    0.5

    0.6

    0.7

                             

    Output gap (in percent)

     

    -4.0

    -1.1

    2.5

    1.3

    1.1

    0.7

    0.4

    0.0

    0.0

    0.0

    0.0

                             

    Saving and investment (in percent of GDP)

                           

    Gross domestic investment

     

    19.7

    22.1

    23.6

    22.5

    22.5

    22.5

    22.6

    22.6

    22.5

    22.5

    22.5

    Gross national saving

     

    23.8

    26.0

    26.8

    24.0

    24.5

    24.7

    25.0

    25.3

    25.4

    25.5

    25.5

                             

    Fiscal sector (in percent of GDP) 2/

                           

    Federal government overall balance

     

    -6.2

    -6.4

    -5.5

    -5.0

    -4.3

    -3.8

    -3.8

    -3.8

    -3.8

    -3.8

    -3.8

    Revenue

     

    15.9

    15.1

    16.4

    17.3

    16.5

    16.2

    15.4

    15.1

    14.8

    14.6

    14.4

    Expenditure and net lending

     

    22.0

    21.5

    22.0

    22.3

    20.8

    20.0

    19.2

    18.9

    18.6

    18.4

    18.2

    Federal government non-oil primary balance

     

    -7.5

    -6.7

    -7.8

    -6.6

    -4.9

    -4.1

    -3.7

    -3.4

    -3.0

    -2.8

    -2.6

    Consolidated public sector overall balance 3/

     

    -7.3

    -8.3

    -6.0

    -5.9

    -8.4

    -6.7

    -6.8

    -6.9

    -6.8

    -6.9

    -6.9

    General government debt 3/

     

    67.7

    69.2

    65.5

    69.7

    69.6

    68.9

    68.7

    69.1

    69.3

    69.6

    69.8

    Of which: federal government debt

     

    62.0

    63.3

    60.2

    64.3

    64.4

    63.7

    63.5

    63.8

    64.1

    64.3

    64.5

                             
                             

    Inflation and unemployment (in percent)

                           

    CPI inflation, annual average

     

    -1.2

    2.5

    3.4

    2.5

    1.8

    2.6

    2.3

    2.0

    2.0

    2.0

    2.0

    CPI inflation, end of period

     

    -1.4

    3.2

    3.8

    1.5

    1.7

    3.8

    2.0

    2.0

    2.0

    2.0

    2.0

    CPI inflation (excluding food and energy), annual average

     

    1.1

    0.7

    3.0

    3.0

    1.8

    2.4

    2.2

    2.0

    2.0

    2.0

    2.0

    CPI inflation (excluding food and energy), end of period

     

    0.7

    1.1

    4.1

    1.9

    1.6

    3.8

    2.0

    2.0

    2.0

    2.0

    2.0

    Unemployment rate

     

    4.5

    4.6

    3.9

    3.4

    3.2

    3.2

    3.2

    3.2

    3.2

    3.2

    3.2

                             
                             

    Macrofinancial variables (end of period)

                           

    Broad money (percentage change) 4/

     

    4.9

    5.6

    4.0

    5.8

    7.1

    7.6

    6.7

    5.9

    5.9

    5.9

    5.9

    Credit to private sector (percentage change) 4/

     

    4.0

    3.8

    3.0

    5.2

    6.2

    6.1

    6.0

    5.9

    5.9

    5.9

    5.9

    Credit-to-GDP ratio (in percent) 5/ 6/

     

    144.8

    137.7

    122.4

    126.7

    125.7

    123.9

    123.1

    123.1

    123.1

    123.1

    123.1

    Overnight policy rate (in percent)

     

    1.75

    1.75

    2.75

    3.00

    Three-month interbank rate (in percent)

     

    1.9

    2.0

    3.6

    3.7

    Nonfinancial corporate sector debt (in percent of GDP) 7/

     

    109.7

    109.0

    97.5

    101.2

    Nonfinancial corporate sector debt issuance (in percent of GDP)

     

    2.3

    2.6

    2.4

    2.5

    Household debt (in percent of GDP) 7/

     

    93.1

    88.9

    80.9

    84.2

    Household financial assets (in percent of GDP) 7/

     

    204.5

    191.9

    167.3

    174.3

    House prices (percentage change)

     

    1.2

    1.9

    3.9

    3.8

                             
                             

    Exchange rates (period average)

                           

    Malaysian ringgit/U.S. dollar

     

    4.19

    4.14

    4.40

    4.56

    Real effective exchange rate (percentage change)

     

    -3.5

    -1.3

    -1.4

    -2.5

                             
                             

    Balance of payments (in billions of U.S. dollars) 5/

                           

    Current account balance

     

    14.1

    14.5

    13.0

    6.2

    8.7

    10.2

    12.0

    14.3

    16.1

    17.6

    19.4

    (In percent of GDP)

     

    4.2

    3.9

    3.2

    1.5

    2.0

    2.2

    2.4

    2.7

    2.9

    3.0

    3.1

    Goods balance

     

    32.7

    42.9

    42.6

    29.9

    26.3

    29.3

    31.8

    33.9

    36.5

    39.2

    43.7

    Services balance

     

    -11.2

    -15.8

    -13.2

    -9.5

    -4.4

    -4.1

    -3.1

    -1.7

    -1.3

    -1.0

    -1.5

    Income balance

     

    -7.4

    -12.5

    -16.3

    -14.2

    -13.2

    -14.9

    -16.7

    -17.9

    -19.2

    -20.6

    -22.8

    Capital and financial account balance

     

    -18.5

    3.8

    1.8

    -3.4

    -6.0

    0.2

    -3.0

    -5.0

    -6.2

    -7.1

    -8.2

    Of which: Direct investment

     

    0.7

    7.5

    2.9

    0.0

    -1.3

    2.0

    2.1

    2.2

    2.4

    2.5

    2.6

    Errors and omissions

     

    -0.1

    -7.3

    -2.7

    -7.2

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Overall balance

     

    -4.6

    11.0

    12.1

    -4.5

    2.7

    10.4

    9.0

    9.3

    9.9

    10.6

    11.2

                             

    Gross official reserves (US$ billions) 5/

     

    107.6

    116.9

    114.7

    113.5

    116.2

    126.6

    135.6

    144.9

    154.8

    165.4

    176.6

    (In months of following year’s imports of goods and nonfactor services)

     

    5.5

    4.9

    5.4

    4.6

    4.4

    4.6

    4.7

    4.8

    4.9

    4.9

    5.0

    (In percent of short-term debt by original maturity)

     

    117.6

    120.8

    104.9

    100.3

    99.4

    98.3

    97.2

    97.0

    97.3

    97.9

    98.9

    (In percent of short-term debt by remaining maturity)

     

    91.9

    93.5

    84.6

    80.7

    78.7

    79.4

    79.0

    79.2

    79.7

    80.5

    81.5

    Total external debt (in billions of U.S. dollars) 5/

     

    238.8

    258.7

    259.6

    270.6

    284.6

    305.1

    324.4

    342.8

    361.1

    379.2

    397.2

    (In percent of GDP)

     

    70.8

    69.3

    63.8

    67.8

    65.1

    65.3

    65.1

    64.9

    64.4

    63.8

    63.0

    Of which: short-term (in percent of total, original maturity)

     

    38.3

    37.4

    42.1

    41.8

    41.1

    42.2

    43.0

    43.6

    44.1

    44.6

    44.9

      short-term (in percent of total, remaining maturity)

     

    49.1

    48.3

    52.2

    51.9

    51.9

    52.3

    52.9

    53.4

    53.8

    54.2

    54.5

    Debt service ratio 5/

                           

    (In percent of exports of goods and services) 8/

     

    13.6

    10.5

    9.7

    11.8

    12.1

    12.1

    10.1

    9.8

    9.7

    9.6

    9.5

    (In percent of exports of goods and nonfactor services)

     

    14.4

    11.4

    10.3

    12.7

    12.9

    12.9

    10.7

    10.4

    10.3

    10.2

    10.0

                             
                             

    Memorandum items:

                           

    Nominal GDP (in billions of ringgit)

     

    1,418

    1,549

    1,794

    1,823

    1,952

    2,099

    2,241

    2,373

    2,512

    2,660

    2,817

                             

    Sources: Data provided by the authorities; CEIC Data; World Bank; UNESCO; and IMF, Integrated Monetary Database, and staff estimates.

                             

    1/ Data used in this report for staff analyses are as of January 29, 2025, unless otherwise noted.
    2/ Cash basis.
    3/ Consolidated public sector includes general government and nonfinancial public enterprises (NFPEs). General government includes federal government, state and local governments, and statutory bodies.
    4/ Based on data provided by the authorities, but follows compilation methodology used in IMF’s Integrated Monetary Database. Credit to private sector in 2018 onwards includes data for a newly licensed commercial bank from April 2018. The impact of this bank is excluded in the calculation of credit gap.
    5/ IMF staff estimates. U.S. dollar values are estimated using official data published in national currency.                                                                                                                         
    6/ Based on a broader measure of liquidity. Credit gap is estimated on quarterly data from 2000, using one-sided Hodrick-Prescott filter with a large parameter.
    7/ Revisions in historical data reflect the change in base year for nominal GDP (from 2010=100 to 2015=100).
    8/ Includes receipts under the primary income account.

                               

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    https://www.imf.org/en/News/Articles/2025/03/02/pr25050-malaysia-imf-executive-board-concludes-2025-article-iv-consultation

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI Economics: IMF Executive Board Concludes 2025 Article IV Consultation with Malaysia

    Source: International Monetary Fund

    March 3, 2025

    Washington, DC: On February 25, 2025, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Malaysia and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2]

    Malaysia’s economic performance has improved significantly in 2024. The economy grew by 5.2 percent (y/y) in the first three quarters of 2024, supported by strong private consumption, buoyant investment, improvements in external demand for electrical and electronic products, and a recovery in tourism. Labor market conditions have been strong, with the unemployment rate low at 3.2 percent in 2024Q3. Meanwhile, inflation has been stable around 2 percent, and the ringgit appreciated against the U.S. dollar by 2.6 percent in 2024.

    Current policies are focused on rebuilding fiscal buffers, augmenting growth potential, and strengthening social protection while preserving macroeconomic and financial stability. The landmark Public Finance and Fiscal Responsibility Act (FRA), enacted in 2023, aims to strengthen fiscal management and governance. Fiscal consolidation continued in 2024, with the overall fiscal deficit estimated to have declined from 5.0 percent of GDP in 2023 to the budget target of 4.3 percent of GDP in 2024, supported by subsidy reforms and strengthening of the sales and service tax. Bank Negara Malaysia (BNM) has kept the Overnight Policy Rate (OPR) unchanged at 3.0 percent since May 2023. Under the Economy MADANI Framework, the authorities have developed a set of concerted policy frameworks that focus on increasing incomes, addressing climate change, promoting digitalization, and enhancing governance.

    Executive Board Assessment

    In concluding the Article IV consultation with Malaysia, Executive Directors endorsed the staff’s appraisal as follows:

    Malaysia’s favorable economic conditions provide a window of opportunity to build macroeconomic policy buffers and accelerate structural reforms. Malaysia’s strong growth momentum is expected to be sustained in the near term, with growth projected at 4.7 percent in 2025. Inflation, which eased to 1.8 percent in 2024, is projected to increase to 2.6 percent in 2025 on account of the anticipated implementation of gasoline subsidy reforms, before moderating to 2.3 percent in 2026. Malaysia’s external position in 2024 is preliminarily assessed to be stronger than the level implied by medium-term fundamentals and desirable policies.

    Risks to growth, mostly external, are tilted to the downside, while inflation risks are tilted to the upside. Downside external risks include deepening geoeconomic fragmentation, a growth slowdown in major trading partners, and intensification of geopolitical conflicts, while upside growth risks include faster implementation of investment projects. The upside risks to the inflation outlook stem from global commodity price shocks and potential wage pressures from increases in minimum wage and civil servants’ pay.

    Fiscal consolidation should continue to rebuild buffers and achieve the medium-term targets set under the FRA. Staff recommends achieving a small structural primary balance by 2027. Building on successful subsidy reforms, including for electricity and diesel, staff recommends gradually phasing out remaining fuel subsidies. Revenue mobilization efforts toward a more broad-based and efficient tax system are warranted. Reintroducing the GST could help achieve this goal. The associated impact of fiscal reforms on vulnerable households should be mitigated by well-targeted cash transfers. Staff welcomes the historic enactment of the FRA and recommends its swift and thorough implementation.

    The current neutral monetary policy stance is appropriate. Going forward, monetary policy should remain data dependent. BNM should stand ready to tighten monetary policy if upside inflation risks materialize. Maintaining exchange rate flexibility is essential.

    Financial systemic risks appear contained, and the financial sector remains sound. Banks’ capital and liquidity positions are robust. Credit growth, corporate and household balance sheets, and real estate markets do not pose systemic risks at this juncture. Continued vigilance is warranted against pockets of more highly leveraged borrowers, interlinkages between banks and non-bank financial institutions, and climate and cyber risks—although spillover risks from these areas remain contained. Given the strong growth and accommodative financial conditions, pre-emptive broadening of the macroprudential policy toolkit could be considered.

    Staff encourages swift implementation of the structural reform initiatives to enhance productivity and inclusive growth. The ongoing development of the PADU digital registry can help strengthen social safety nets and public service delivery. Investment incentives to promote high-growth and high-value industries should be well-targeted and ring-fenced. Further efforts are warranted toward Malaysia’s transition to net-zero emissions and readiness for Artificial Intelligence. Staff welcomes the authorities’ efforts to strengthen governance and the anti-corruption framework.

    Selected Economic and Financial Indicators, 2020–30

    Nominal GDP (2023): US$399.7 billion

         

     Population (2023): 33.4 million

               

    GDP per capita (2023, current prices): US$11,967

         

     Poverty rate (2019, national poverty line): 0.2 percent

           

    Unemployment rate (2023, period average):  3.4 percent

         

     Adult literacy rate (2019): 95.0 percent

             
                             

    Main domestic goods exports (share of total domestic exports, 2023): Machinery and Transport Equipment (45.6 percent), Manufactured Goods and Miscellaneous Manufactured Articles (19.0 percent), and Mineral Fuels, Lubricants etc. (16.5 percent).

                 
           
               

    Proj.

       

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    2029

    2030

    1/

                             

    Real GDP (percent change)

     

    -5.5

    3.3

    8.9

    3.6

    5.0

    4.7

    4.4

    4.0

    4.0

    4.0

    4.0

    Total domestic demand

     

    -4.8

    3.8

    9.5

    4.7

    6.1

    4.7

    4.0

    3.6

    3.6

    3.6

    3.4

    Private consumption

     

    -3.9

    1.8

    11.3

    4.7

    5.3

    4.5

    3.9

    3.4

    3.9

    3.8

    3.7

    Public consumption

     

    4.1

    5.8

    5.1

    3.3

    4.3

    3.5

    2.7

    2.4

    2.3

    2.3

    2.3

    Private investment

     

    -11.9

    2.8

    7.2

    4.6

    12.0

    6.0

    5.1

    4.0

    4.0

    4.0

    4.0

    Public gross fixed capital formation

     

    -21.2

    -11.0

    5.3

    8.6

    11.2

    4.0

    2.8

    2.3

    2.1

    2.0

    2.1

    Net exports (contribution to growth, percentage points)

     

    -1.0

    -0.3

    -0.1

    -0.9

    -0.8

    0.2

    0.5

    0.6

    0.5

    0.6

    0.7

                             

    Output gap (in percent)

     

    -4.0

    -1.1

    2.5

    1.3

    1.1

    0.7

    0.4

    0.0

    0.0

    0.0

    0.0

                             

    Saving and investment (in percent of GDP)

                           

    Gross domestic investment

     

    19.7

    22.1

    23.6

    22.5

    22.5

    22.5

    22.6

    22.6

    22.5

    22.5

    22.5

    Gross national saving

     

    23.8

    26.0

    26.8

    24.0

    24.5

    24.7

    25.0

    25.3

    25.4

    25.5

    25.5

                             

    Fiscal sector (in percent of GDP) 2/

                           

    Federal government overall balance

     

    -6.2

    -6.4

    -5.5

    -5.0

    -4.3

    -3.8

    -3.8

    -3.8

    -3.8

    -3.8

    -3.8

    Revenue

     

    15.9

    15.1

    16.4

    17.3

    16.5

    16.2

    15.4

    15.1

    14.8

    14.6

    14.4

    Expenditure and net lending

     

    22.0

    21.5

    22.0

    22.3

    20.8

    20.0

    19.2

    18.9

    18.6

    18.4

    18.2

    Federal government non-oil primary balance

     

    -7.5

    -6.7

    -7.8

    -6.6

    -4.9

    -4.1

    -3.7

    -3.4

    -3.0

    -2.8

    -2.6

    Consolidated public sector overall balance 3/

     

    -7.3

    -8.3

    -6.0

    -5.9

    -8.4

    -6.7

    -6.8

    -6.9

    -6.8

    -6.9

    -6.9

    General government debt 3/

     

    67.7

    69.2

    65.5

    69.7

    69.6

    68.9

    68.7

    69.1

    69.3

    69.6

    69.8

    Of which: federal government debt

     

    62.0

    63.3

    60.2

    64.3

    64.4

    63.7

    63.5

    63.8

    64.1

    64.3

    64.5

                             
                             

    Inflation and unemployment (in percent)

                           

    CPI inflation, annual average

     

    -1.2

    2.5

    3.4

    2.5

    1.8

    2.6

    2.3

    2.0

    2.0

    2.0

    2.0

    CPI inflation, end of period

     

    -1.4

    3.2

    3.8

    1.5

    1.7

    3.8

    2.0

    2.0

    2.0

    2.0

    2.0

    CPI inflation (excluding food and energy), annual average

     

    1.1

    0.7

    3.0

    3.0

    1.8

    2.4

    2.2

    2.0

    2.0

    2.0

    2.0

    CPI inflation (excluding food and energy), end of period

     

    0.7

    1.1

    4.1

    1.9

    1.6

    3.8

    2.0

    2.0

    2.0

    2.0

    2.0

    Unemployment rate

     

    4.5

    4.6

    3.9

    3.4

    3.2

    3.2

    3.2

    3.2

    3.2

    3.2

    3.2

                             
                             

    Macrofinancial variables (end of period)

                           

    Broad money (percentage change) 4/

     

    4.9

    5.6

    4.0

    5.8

    7.1

    7.6

    6.7

    5.9

    5.9

    5.9

    5.9

    Credit to private sector (percentage change) 4/

     

    4.0

    3.8

    3.0

    5.2

    6.2

    6.1

    6.0

    5.9

    5.9

    5.9

    5.9

    Credit-to-GDP ratio (in percent) 5/ 6/

     

    144.8

    137.7

    122.4

    126.7

    125.7

    123.9

    123.1

    123.1

    123.1

    123.1

    123.1

    Overnight policy rate (in percent)

     

    1.75

    1.75

    2.75

    3.00

    Three-month interbank rate (in percent)

     

    1.9

    2.0

    3.6

    3.7

    Nonfinancial corporate sector debt (in percent of GDP) 7/

     

    109.7

    109.0

    97.5

    101.2

    Nonfinancial corporate sector debt issuance (in percent of GDP)

     

    2.3

    2.6

    2.4

    2.5

    Household debt (in percent of GDP) 7/

     

    93.1

    88.9

    80.9

    84.2

    Household financial assets (in percent of GDP) 7/

     

    204.5

    191.9

    167.3

    174.3

    House prices (percentage change)

     

    1.2

    1.9

    3.9

    3.8

                             
                             

    Exchange rates (period average)

                           

    Malaysian ringgit/U.S. dollar

     

    4.19

    4.14

    4.40

    4.56

    Real effective exchange rate (percentage change)

     

    -3.5

    -1.3

    -1.4

    -2.5

                             
                             

    Balance of payments (in billions of U.S. dollars) 5/

                           

    Current account balance

     

    14.1

    14.5

    13.0

    6.2

    8.7

    10.2

    12.0

    14.3

    16.1

    17.6

    19.4

    (In percent of GDP)

     

    4.2

    3.9

    3.2

    1.5

    2.0

    2.2

    2.4

    2.7

    2.9

    3.0

    3.1

    Goods balance

     

    32.7

    42.9

    42.6

    29.9

    26.3

    29.3

    31.8

    33.9

    36.5

    39.2

    43.7

    Services balance

     

    -11.2

    -15.8

    -13.2

    -9.5

    -4.4

    -4.1

    -3.1

    -1.7

    -1.3

    -1.0

    -1.5

    Income balance

     

    -7.4

    -12.5

    -16.3

    -14.2

    -13.2

    -14.9

    -16.7

    -17.9

    -19.2

    -20.6

    -22.8

    Capital and financial account balance

     

    -18.5

    3.8

    1.8

    -3.4

    -6.0

    0.2

    -3.0

    -5.0

    -6.2

    -7.1

    -8.2

    Of which: Direct investment

     

    0.7

    7.5

    2.9

    0.0

    -1.3

    2.0

    2.1

    2.2

    2.4

    2.5

    2.6

    Errors and omissions

     

    -0.1

    -7.3

    -2.7

    -7.2

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    Overall balance

     

    -4.6

    11.0

    12.1

    -4.5

    2.7

    10.4

    9.0

    9.3

    9.9

    10.6

    11.2

                             

    Gross official reserves (US$ billions) 5/

     

    107.6

    116.9

    114.7

    113.5

    116.2

    126.6

    135.6

    144.9

    154.8

    165.4

    176.6

    (In months of following year’s imports of goods and nonfactor services)

     

    5.5

    4.9

    5.4

    4.6

    4.4

    4.6

    4.7

    4.8

    4.9

    4.9

    5.0

    (In percent of short-term debt by original maturity)

     

    117.6

    120.8

    104.9

    100.3

    99.4

    98.3

    97.2

    97.0

    97.3

    97.9

    98.9

    (In percent of short-term debt by remaining maturity)

     

    91.9

    93.5

    84.6

    80.7

    78.7

    79.4

    79.0

    79.2

    79.7

    80.5

    81.5

    Total external debt (in billions of U.S. dollars) 5/

     

    238.8

    258.7

    259.6

    270.6

    284.6

    305.1

    324.4

    342.8

    361.1

    379.2

    397.2

    (In percent of GDP)

     

    70.8

    69.3

    63.8

    67.8

    65.1

    65.3

    65.1

    64.9

    64.4

    63.8

    63.0

    Of which: short-term (in percent of total, original maturity)

     

    38.3

    37.4

    42.1

    41.8

    41.1

    42.2

    43.0

    43.6

    44.1

    44.6

    44.9

      short-term (in percent of total, remaining maturity)

     

    49.1

    48.3

    52.2

    51.9

    51.9

    52.3

    52.9

    53.4

    53.8

    54.2

    54.5

    Debt service ratio 5/

                           

    (In percent of exports of goods and services) 8/

     

    13.6

    10.5

    9.7

    11.8

    12.1

    12.1

    10.1

    9.8

    9.7

    9.6

    9.5

    (In percent of exports of goods and nonfactor services)

     

    14.4

    11.4

    10.3

    12.7

    12.9

    12.9

    10.7

    10.4

    10.3

    10.2

    10.0

                             
                             

    Memorandum items:

                           

    Nominal GDP (in billions of ringgit)

     

    1,418

    1,549

    1,794

    1,823

    1,952

    2,099

    2,241

    2,373

    2,512

    2,660

    2,817

                             

    Sources: Data provided by the authorities; CEIC Data; World Bank; UNESCO; and IMF, Integrated Monetary Database, and staff estimates.

                             

    1/ Data used in this report for staff analyses are as of January 29, 2025, unless otherwise noted.
    2/ Cash basis.
    3/ Consolidated public sector includes general government and nonfinancial public enterprises (NFPEs). General government includes federal government, state and local governments, and statutory bodies.
    4/ Based on data provided by the authorities, but follows compilation methodology used in IMF’s Integrated Monetary Database. Credit to private sector in 2018 onwards includes data for a newly licensed commercial bank from April 2018. The impact of this bank is excluded in the calculation of credit gap.
    5/ IMF staff estimates. U.S. dollar values are estimated using official data published in national currency.                                                                                                                         
    6/ Based on a broader measure of liquidity. Credit gap is estimated on quarterly data from 2000, using one-sided Hodrick-Prescott filter with a large parameter.
    7/ Revisions in historical data reflect the change in base year for nominal GDP (from 2010=100 to 2015=100).
    8/ Includes receipts under the primary income account.

                               

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

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

    MIL OSI Economics

  • MIL-OSI Submissions: Africa Women Innovation and Entrepreneurship Forum (AWIEF) launches Call for Applications for its Growth Accelerator programme with support from African Guarantee Fund and FSDH Merchant Bank Limited

    SOURCE: Africa Women Innovation and Entrepreneurship Forum (AWIEF)

    The tri-party collaboration between AWIEF, AGF, and FSDH Merchant Bank Limited was created with the aim to increase access to finance for WSMEs who are driving solutions in different catalytic sectors in Nigeria

    LAGOS, Nigeria, March 3, 2025/ — The Africa Women Innovation and Entrepreneurship Forum (AWIEF) (www.AWIEForum.org/home-awief/) has partnered with African Guarantee Fund (AGF) and FSDH Merchant Bank Limited to implement its flagship AWIEF Growth Accelerator programme in Nigeria and is excited to announce the call for applications.

    Background

    Limited access to finance remains a significant barrier for women entrepreneurs in Africa, with a staggering financing gap estimated at USD 49 billion. To address this challenge, the Growth Accelerator Programme leverages the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, which aims to unlock up to USD 3 billion in financing for women-owned/led Small and Medium-Sized Enterprises (WSMEs) across the continent.

    AGF, a leading non-bank financial institution whose objective is to promote economic development, increase employment and reduce poverty in Africa, serves as the implementing partner for AFAWA. AGF’s commitment extends into providing technical assistance to partner financial institutions, enhancing their capacity to serve women-owned businesses effectively. By addressing both supply and demand-side constraints, AGF and AFAWA work in tandem to create a more equitable landscape for women entrepreneurs in Africa.

    FSDH Merchant Bank Limited partnership with AGF is backed by AFAWA to enable the Partner Financial Institution (PFI) provide loans to WSMEs in Nigeria. FSDH Merchant Bank Limited is dedicated to empowering women in business across Nigeria and drives its gender strategy through its Women in Business Initiative (WIBI).

    The tri-party collaboration between AWIEF, AGF, and FSDH Merchant Bank Limited was created with the aim to increase access to finance for WSMEs who are driving solutions in different catalytic sectors in Nigeria. This will be achieved by making the WSMEs credit and investment-ready and eligible to access business loans and financing from FSDH Merchant Bank Limited. The programme will provide a stream of businesses that are adequately prepared to meet the FSDH Merchant Bank’s credit requirements.

    Call for Applications

    Applications are open to qualifying businesses. The programme will attract and select a cohort of 100 beneficiaries, comprising women entrepreneurs and founders with businesses registered and operating in Nigeria who will participate in the 12-month Growth Accelerator and will benefit from a wide range of tailored and refined business development mentorship, training, and advisory services.

    Eligibility Criteria

    Businesses must meet ONE of the following criteria:

    Entrepreneurship & Ownership:

    51% share of women ownership OR Business founded by a woman.

    OR

    Leadership:

    At least 20% share of women in senior management or 10% share of women on the Board.

    OR

    Products & Services:

    Product(s) or service(s) enhance(s) well-being of women/girls and/or drive(s) gender equity.

    Additionally, businesses must be:

    Based and operating in Nigeria.
    In post-revenue stage.
    Highly innovative and scalable ventures.
    In operation for not less than three years.
    Owned and/or led by ambitious and committed entrepreneurs.
    Seeking for investment, credit or financing to scale and expand.

    What Are the Benefits for Participants?

    Access to high-level training, mentorship, and business advisory.
    Improved technical, managerial, leadership, and interpersonal skills aligned with the priority needs of their businesses.
    Increased creditworthiness and capacity to meet the AGF PFI’s financing requirements.
    Post-capacity building and loan application support.
    Enhanced access to other financing opportunities.
    Effective integration of the WSMEs into the financial ecosystem.
    Expanded peer networks in Nigeria and across the African continent.

    Applications Open Now!

    Applications are officially open for qualifying candidates for the AWIEF Growth Accelerator, in partnership with AGF and FSDH Merchant Bank Limited.

    To submit your application and for more programme details, please follow this link: https://apo-opa.co/3DgIuo0

    The deadline for submission is Monday, 31 March 2025 at 11:59pm West Africa Time (WAT).

    MIL OSI – Submitted News

  • MIL-OSI Africa: Finance in Common Summit urges global development finance institutions to harness collective power to address global poverty

    Source: Africa Press Organisation – English (2) – Report:

    CAPE TOWN, South Africa, March 3, 2025/APO Group/ —

    The fifth edition of the Finance in Common Summit (FiCS) concluded on Friday in Cape Town, South Africa, with strong calls for global development finance institutions to work together to address poverty and development challenges. South African Finance Minister Enoch Godongwana led the call.

    The summit, which was co-sponsored by the African Development Bank and took place alongside the G20 Finance Ministers’ Meeting, was themed “Fostering Infrastructure and Finance for Fair and Sustainable Growth.”

    Godongwana described the meeting as an unprecedented gathering of key financial players, saying: “Your determination and commitment will change the world. Your determination and will have an impact on global poverty.”

    The minister linked the summit’s goals to South Africa’s development trajectory, highlighting the structural reforms the country had undertaken in the electricity, roads, and port sectors, which have opened new investment opportunities to development partners.

    African Development Bank Vice President for Finance and Chief Financial Officer, Hassatou Diop N’Sele—one of several senior officials of the Bank Group at FiCS—represented Bank Group President, Dr. Akinwumi Adesina at a meeting on Wednesday organized by the Council of Europe Development Bank. At the meeting, multilateral development banks reaffirmed a shared commitment to maximize their collective impact.

    During the G20 meetings of Finance Ministers and central bank governors, Hassatou Diop N’Sele said, “We call on G20 nations to enhance financial commitments, especially for the 17th replenishment of the African Development Fund, to simplify processes for accessing climate finance, and to create enabling policies that facilitate sustainable capital flows to Africa.”

    In her various interventions during FiCS, she discussed the innovative financing tools and initiatives launched by the African Development Bank to leverage resources and mobilize the private sector at scale, including the landmark hybrid capital transactions successfully replicated by other development finance institutions and the Africa Investment Forum.

    N’Sele emphasized the urgency for philanthropies and foundations to further strengthen their partnerships with multilateral development banks and to fully embrace innovation to amplify their impact. She also recognized the challenges for expanding climate finance in Africa and reflected on such solutions and platforms as the Alliance for Green Infrastructure in Africa, designed to catalyze bankable, greener infrastructure projects at scale and speed.

    The African Development Bank delegation highlighted the progress of Mission 300 (https://apo-opa.co/4bolqQE), an initiative to accelerate access to electricity for 300 million Africans by 2030. The Bank, working with the World Bank and other development finance institutions and private sector partners, has committed $18.2 billion to this effort.

    Senior leaders of the Bank stressed the need for urgent action. Nnenna Nwabufo, Bank Group Vice President for Regional Development, Integration and Business Delivery, said: “Africa is not looking for aid, we are looking for partnerships.”.

    She added: “The time for pilot projects that deliver incremental progress is over. We need investments that enable our nations to take ownership of their development, fostering resilience, self-sufficiency, and sustainable growth that benefits both Africa and the global economy.”

    Solomon Quaynor, the African Development Bank’s Vice President for Private Sector, Infrastructure and Industrialization, called for faster implementation of infrastructure projects. “Africa can no longer sustain infrastructure projects that take seven to 10 years to complete – we must accelerate development to deliver within three years, prioritizing green infrastructure,” he said.

    The African continent needs $2.7 trillion through 2030 to meet its climate action goals, but receives only 3.6% of all global climate finance, despite its minimal contribution to global emissions.

    The African Development Bank’s Director General for Southern Africa, Leila Mokaddem, emphasized that Africa’s green transition must be inclusive. She said: “With 600 million Africans still without electricity, our transition cannot be about climate goals alone. It must be about jobs, industrialization and economic opportunity. The African Development Bank is supporting this vision through its Jobs for Youth in Africa strategy to create 25 million jobs and equip 50 million young Africans with green economy skills by the end of this year.”

    The summit achieved several significant breakthroughs in expanding the scope and impact of development financing. Key outcomes included: the endorsement by G20 finance ministers of public development banks’ crucial role in international financial architecture; steps toward setting up frameworks to support cultural industries as valid asset classes; and the formation of a coalition between public development banks and civil society to ensure that development finance serves communities.

    CEO of Agence Française de Développement and Chair of the Finance in Common Summit Rémy Rioux noted: “We have made tremendous progress in building public development banks as an asset class through innovation, commitment, and shared values. In times of uncertainty and conflict, we are offering a calm, collective alternative.”

    “This has truly been an African FiCS,” said Boitumelo Mosako, CEO of the Development Bank of Southern Africa. He added:  “With 34% of delegates coming from the continent, we have shown that Africa is unstoppable as the second fastest growing region in the world.”

    Following the Finance in Common Summit, the Fourth Finance for Development Conference will take place in Spain between June and July this year. Being organized by the United Nations and the Spanish government, that summit will feature continuing discussions on reshaping the international financial architecture to better serve development needs.

    MIL OSI Africa

  • MIL-OSI USA: Reed: Musk’s False Claim that Social Security is a ‘Ponzi Scheme’ is a Sure Sign Trump is Willing to Cut Social Security

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – After multi-billionaire ‘shadow president’ Elon Musk falsely asserted that Social Security is “the biggest Ponzi scheme of all time” during a Friday podcast, U.S. Senator Jack Reed (D-RI) rebuked Musk’s false claim and noted it was another clear sign that the Trump Administration is destabilizing people’s retirement security and cutting away the social safety net for seniors and everyday Americans.

    Senator Reed has warned that the Trump Administration is actively decimating the Social Security Administration and making it harder for older Americans to access the benefits they earned. 

    Today, Senator Reed stated:

    “Let’s be clear: Social Security is not a Ponzi scheme, it is an effective lifeline that helps seniors avoid destitution.  It is a sound insurance program that works for wage earners who pay into the system while they are working, and when they reach retirement age they get benefits.  For nearly ninety years, it has effectively helped keep generations of seniors, survivors, and disabled Americans out of poverty.

    “Social Security is not the scam, the scam here is out of touch multi-billionaires are systemically trying to undercut working people and take away their earned benefits.

    “On the campaign trail, Donald Trump repeatedly pledged he wouldn’t touch Social Security benefits if he were re-elected.  But he’s already broken other campaign pledges.  So the American people need to be vigilant and make their voices heard. 

    “By comparing Social Security to a criminal enterprise, Musk is signaling Trump should prioritize tax breaks for billionaires and special interests over working people’s retirement.  Trump is already actively cutting the Social Security Administration.  Elon Musk is making it clear he wants to break Social Security and President Trump has given him the green light to make it harder for people to access the benefits they earned.

    “I will continue working strengthen Social Security and fight efforts to weaken it.  President Trump must abandon the MAGA crusade against Social Security.”

    MIL OSI USA News

  • MIL-OSI Global: Nigeria’s 2025 budget has major flaws and won’t ease economic burden

    Source: The Conversation – Africa – By Stephen Onyeiwu, Professor of Economics & Business, Allegheny College

    There are doubts as to whether Nigerian president Bola Tinubu’s N54.99 trillion (US$36.6 billion) 2025 budget will lay a solid foundation for addressing some of the country’s current economic challenges.

    Economist Stephen Onyeiwu unpacks these challenges and sets out why the 2025 budget won’t change Nigeria’s economic landscape (though it has some silver linings).

    What are Nigeria’s four biggest economic challenges?

    Firstly, Nigeria’s economy has grown at a subdued average rate of about 3% for the past three years.

    Though comparable to global economic growth, this rate of growth is insufficient to create jobs and alleviate poverty. The official unemployment rate is 4.3%.

    Only 15% of those employed, however, are in the formal sector as wage earners. About 93% of Nigerians are engaged in informal sector activities. They’re doing low-income and vulnerable jobs, with no social protection.

    Secondly, Nigerians are struggling with a high cost of living. Inflation has remained high for three years, as have interest rates.

    The exchange rate has been elevated and volatile. The result has been rising food, fuel and housing costs.

    Thirdly, the country has not been able to attract enough foreign investment to generate high-paying jobs in the formal sector. Foreign direct investment to Nigeria has been declining. It fell from US$8.6 billion in 2009 to US$1.8 billion in 2023.

    Reasons for the decline are the high cost of doing business in Nigeria, insecurity, poor infrastructure and macroeconomic instability.

    Fourthly, poverty rates are high. This is due to unemployment and the lack of safety nets. The poverty rate rose from 33.2% in 2020 to 47.2% in 2024. The number of poor people is expected to increase by 13 million in 2025, largely due to inflation.

    Will the 2025 budget help?

    There are a number of serious flaws in it which suggest it won’t.

    Tinubu said the 2025 budget “was designed to ensure macro-economic stability, poverty reduction, promoting economic stability, developing human capital and addressing insecurity.”

    But the allocation of funds does not reflect these priorities. The allocations to personnel and overheads far exceed allocations to capital expenditures – things that build the economy’s productive capacity.

    A key challenge for Nigeria is how to shift resources from consumption to production. The 2025 budget reinforces the longstanding consumerist nature of the economy.

    China spends about 45% of GDP on capital formation. This has spurred and sustained the country’s high growth rates for decades. Nigeria’s allocation to capital expenditure in the 2025 budget is about 19%.

    In his budget speech the president said his administration’s goal was to

    “get our manufacturing sector humming again and ultimately increase the competitiveness of our economy.”

    But the federal ministries that should be driving this effort – industry and education – weren’t allocated enough for capital expenditure.

    Nor did the budget prioritise things that would ease the economic burden of Nigerians.

    A big chunk of the budget (about 35.4%) goes to servicing debt. Indeed, about 65% of the 2025 budget will finance debt repayment, personnel costs and overheads.

    Another concern is that the government intends to borrow N9.22 trillion (US$6.2 billion) to finance the budget, higher than the N7.83 trillion (US$5.2 billion) borrowed in the previous year.

    Borrowing to finance a budget increases the interest rate and makes private-sector borrowing costly. Businesses can’t access funds that would enable them to invest and boost economic growth, reduce inflation, create jobs and alleviate poverty.

    Are there any silver linings?

    There are some.

    It is commendable that the Federal Ministry of Communications & the Digital Economy was allocated about N450 billion (US$300 million) for capital expenditure, compared to just N33 billion (US$22 million) for recurrent expenditure. The administration is signalling its commitment to building capacity in the IT sector. This is important because Nigeria needs to promote a knowledge-based economy that would diversify away from hydrocarbons.

    Another encouraging aspect of the budget is that the ratio of budget deficit to GDP (3.89%) is lower than the average 5% prior to 2024. Although the administration will borrow to cover the deficit, it’s borrowing less than before relative to GDP. This signals an intention to be more financially prudent than previous administrations, assuming it won’t resort to supplementary budgets.

    What needs to happen now?

    The 2025 budget is anything but pro-poor. Most of its provisions benefit the elites, contractors and public employees.

    Much will be used to pay politicians and their aides at the National Assembly and workers in the government ministries and agencies.

    Money allocated to capital expenditure will be used to pay contractors for government projects.

    Nigerians in the informal sector will not feel a direct impact. There should have been more proactive measures to address unemployment and poverty.

    Sustainable development requires a strong rural economy. While the manufacturing and services sectors are critical for structural transformation and job creation, they can’t develop without a vibrant agricultural sector.

    Strengthening the rural economy of Nigeria requires raising the productivity of farmers so that they can supply food to urban workers at affordable prices. This helps keep inflation and wage rates low.

    Raising the productivity of rural people raises their incomes and alleviates poverty.

    Higher rural incomes increase farmers’ purchasing power, leading to an increase in the demand for goods and services produced in the manufacturing sector. When rural people earn more, there’s less reason to migrate to urban areas.

    Less migration implies less pressure on urban social services, the labour market and the informal sector.

    More funds need to be allocated to sectors and activities that raise the productive capacity of the economy. This will involve reducing governance costs and using the savings to boost food production, agro-processing and manufacturing.

    The key to stabilising the Nigerian economy is massive food production, which will reduce food inflation. Coupled with agro-processing, food production will boost exports, reduce food imports and strengthen the value of the naira.

    A stronger naira will reduce inflation and interest rates.

    In conclusion, the 2025 budget does not solve Nigeria’s endless cycle of deficits and debts. Neither does it lay the foundation for structural transformation, economic diversification, sustainable economic growth, employment generation and poverty alleviation.

    It will leave the economic landscape unchanged.

    Stephen Onyeiwu 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. Nigeria’s 2025 budget has major flaws and won’t ease economic burden – https://theconversation.com/nigerias-2025-budget-has-major-flaws-and-wont-ease-economic-burden-250713

    MIL OSI – Global Reports

  • MIL-OSI Africa: Nigeria’s 2025 budget has major flaws and won’t ease economic burden

    Source: The Conversation – Africa – By Stephen Onyeiwu, Professor of Economics & Business, Allegheny College

    There are doubts as to whether Nigerian president Bola Tinubu’s N54.99 trillion (US$36.6 billion) 2025 budget will lay a solid foundation for addressing some of the country’s current economic challenges.

    Economist Stephen Onyeiwu unpacks these challenges and sets out why the 2025 budget won’t change Nigeria’s economic landscape (though it has some silver linings).

    What are Nigeria’s four biggest economic challenges?

    Firstly, Nigeria’s economy has grown at a subdued average rate of about 3% for the past three years.

    Though comparable to global economic growth, this rate of growth is insufficient to create jobs and alleviate poverty. The official unemployment rate is 4.3%.

    Only 15% of those employed, however, are in the formal sector as wage earners. About 93% of Nigerians are engaged in informal sector activities. They’re doing low-income and vulnerable jobs, with no social protection.

    Secondly, Nigerians are struggling with a high cost of living. Inflation has remained high for three years, as have interest rates.

    The exchange rate has been elevated and volatile. The result has been rising food, fuel and housing costs.

    Thirdly, the country has not been able to attract enough foreign investment to generate high-paying jobs in the formal sector. Foreign direct investment to Nigeria has been declining. It fell from US$8.6 billion in 2009 to US$1.8 billion in 2023.

    Reasons for the decline are the high cost of doing business in Nigeria, insecurity, poor infrastructure and macroeconomic instability.

    Fourthly, poverty rates are high. This is due to unemployment and the lack of safety nets. The poverty rate rose from 33.2% in 2020 to 47.2% in 2024. The number of poor people is expected to increase by 13 million in 2025, largely due to inflation.

    Will the 2025 budget help?

    There are a number of serious flaws in it which suggest it won’t.

    Tinubu said the 2025 budget “was designed to ensure macro-economic stability, poverty reduction, promoting economic stability, developing human capital and addressing insecurity.”

    But the allocation of funds does not reflect these priorities. The allocations to personnel and overheads far exceed allocations to capital expenditures – things that build the economy’s productive capacity.

    A key challenge for Nigeria is how to shift resources from consumption to production. The 2025 budget reinforces the longstanding consumerist nature of the economy.

    China spends about 45% of GDP on capital formation. This has spurred and sustained the country’s high growth rates for decades. Nigeria’s allocation to capital expenditure in the 2025 budget is about 19%.

    In his budget speech the president said his administration’s goal was to

    “get our manufacturing sector humming again and ultimately increase the competitiveness of our economy.”

    But the federal ministries that should be driving this effort – industry and education – weren’t allocated enough for capital expenditure.

    Nor did the budget prioritise things that would ease the economic burden of Nigerians.

    A big chunk of the budget (about 35.4%) goes to servicing debt. Indeed, about 65% of the 2025 budget will finance debt repayment, personnel costs and overheads.

    Another concern is that the government intends to borrow N9.22 trillion (US$6.2 billion) to finance the budget, higher than the N7.83 trillion (US$5.2 billion) borrowed in the previous year.

    Borrowing to finance a budget increases the interest rate and makes private-sector borrowing costly. Businesses can’t access funds that would enable them to invest and boost economic growth, reduce inflation, create jobs and alleviate poverty.

    Are there any silver linings?

    There are some.

    It is commendable that the Federal Ministry of Communications & the Digital Economy was allocated about N450 billion (US$300 million) for capital expenditure, compared to just N33 billion (US$22 million) for recurrent expenditure. The administration is signalling its commitment to building capacity in the IT sector. This is important because Nigeria needs to promote a knowledge-based economy that would diversify away from hydrocarbons.

    Another encouraging aspect of the budget is that the ratio of budget deficit to GDP (3.89%) is lower than the average 5% prior to 2024. Although the administration will borrow to cover the deficit, it’s borrowing less than before relative to GDP. This signals an intention to be more financially prudent than previous administrations, assuming it won’t resort to supplementary budgets.

    What needs to happen now?

    The 2025 budget is anything but pro-poor. Most of its provisions benefit the elites, contractors and public employees.

    Much will be used to pay politicians and their aides at the National Assembly and workers in the government ministries and agencies.

    Money allocated to capital expenditure will be used to pay contractors for government projects.

    Nigerians in the informal sector will not feel a direct impact. There should have been more proactive measures to address unemployment and poverty.

    Sustainable development requires a strong rural economy. While the manufacturing and services sectors are critical for structural transformation and job creation, they can’t develop without a vibrant agricultural sector.

    Strengthening the rural economy of Nigeria requires raising the productivity of farmers so that they can supply food to urban workers at affordable prices. This helps keep inflation and wage rates low.

    Raising the productivity of rural people raises their incomes and alleviates poverty.

    Higher rural incomes increase farmers’ purchasing power, leading to an increase in the demand for goods and services produced in the manufacturing sector. When rural people earn more, there’s less reason to migrate to urban areas.

    Less migration implies less pressure on urban social services, the labour market and the informal sector.

    More funds need to be allocated to sectors and activities that raise the productive capacity of the economy. This will involve reducing governance costs and using the savings to boost food production, agro-processing and manufacturing.

    The key to stabilising the Nigerian economy is massive food production, which will reduce food inflation. Coupled with agro-processing, food production will boost exports, reduce food imports and strengthen the value of the naira.

    A stronger naira will reduce inflation and interest rates.

    In conclusion, the 2025 budget does not solve Nigeria’s endless cycle of deficits and debts. Neither does it lay the foundation for structural transformation, economic diversification, sustainable economic growth, employment generation and poverty alleviation.

    It will leave the economic landscape unchanged.

    – Nigeria’s 2025 budget has major flaws and won’t ease economic burden
    – https://theconversation.com/nigerias-2025-budget-has-major-flaws-and-wont-ease-economic-burden-250713

    MIL OSI Africa

  • MIL-OSI: C.W. Williams Community Health Center Awarded $500,000 Grant for New Medical Facility in Charlotte

    Source: GlobeNewswire (MIL-OSI)

    CHARLOTTE, N.C., March 03, 2025 (GLOBE NEWSWIRE) — SECU Foundation has awarded a $500,000 capital grant to C.W. Williams Community Health Center (CWWCHC) to support the construction of a new medical facility that will serve low-income and uninsured residents in a nine-county region of southwest North Carolina. The new facility will expand the non-profit’s reach to 25,000 patients annually, a 92% capacity increase.

    CWWCHC, a Federally Qualified Community Health Center, reports that more than 20% of their area’s population lives in poverty. Its data shows 42% of their patients are uninsured and 66% live on incomes below 200% of the federal poverty level. Through the new facility, CWWCHC will provide a comprehensive care model that integrates primary, preventative, educational, and support services in one location, reducing barriers to care.

    “The C.W. Williams Community Health Center has been an important resource for southwestern North Carolina since 1981, providing reliable, high-quality care for marginalized populations,” said SECU Foundation Board Chair Chris Ayers. “We are pleased to support the construction of this state-of-the-art facility, which will help them increase capacity and meet the growing needs for their services.”

    “As we continue to grow and flourish, C.W. Williams Community Health Center continues to provide the best quality health care and social services,” said CWWCHC CEO Debra Weeks. “This year, thanks in part to SECU Foundation, we will focus on nutritional health, maternal health, and behavioral health, making a positive impact in communities that are struggling. Funding is leveraged across every facet of our operations, so this grant will be reinvested in services and staffing to ensure quality healthcare to all, regardless of their ability to pay.”

    About SECU and SECU Foundation

    A not-for-profit financial cooperative owned by its members, and federally insured by the National Credit Union Administration (NCUA), SECU has been providing employees of the state of North Carolina and their families with consumer financial services for 87 years. SECU is the second largest credit union in the United States with $53 billion in assets. It serves more than 2.8 million members through 275 branch offices, 1,100 ATMs, Member Services Support via phone, www.ncsecu.org, and the SECU Mobile App. The SECU Foundation, a 501(c)(3) charitable organization funded by the contributions of SECU members, promotes local community development in North Carolina primarily through high-impact projects in the areas of housing, education, healthcare, and human services. Since 2004, SECU Foundation has made a collective financial commitment of over $300 million for initiatives to benefit North Carolinians statewide.

    Contact: Jama Campbell, Executive Director, secufoundation@ncsecu.org

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dd79a796-5f5d-42d8-be09-ee4aa3f7e78c

    The MIL Network

  • MIL-OSI Global: English schools provide free period products – but they’re still not easy for pupils to get hold of

    Source: The Conversation – UK – By Maria Kathryn Tomlinson, Lecturer in Public Communication and Gender, University of Sheffield, University of Sheffield

    noowans/Shutterstock

    Pupils in the UK are struggling to afford menstrual products. In a 2022 UK survey, charity WaterAid found that one in five girls were missing school as a result. Limited access to period products can also have a negative impact on learning and attainment.

    In 2020, the government attempted to address this problem in England with a scheme to make period products available for free in schools and colleges. This is a valuable endeavour. However, just because pads and tampons are stocked in schools, this does not mean that they are easily accessible to the pupils who need them.

    In research for my recently published book, I talked to 77 teenagers in England about their knowledge and views of menstruation and related social issues.

    Many of the girls and non-binary pupils used this opportunity to share the frustrations, anxiety and embarrassment that they had experienced when searching for, requesting, or using the free period products in their current and previous schools.

    Some pupils explained that they had to ask for period products and wished that they could “just grab them” when needed. They told me that products were kept at reception, locked away, or stored in areas – such as staff rooms – that pupils are not allowed to access.

    This requires teenagers to discuss their period with teachers or other members of school staff and many pupils I spoke to explained that they felt too embarrassed to do this. This echoes the findings of other research on the continued role played by menstrual stigma in schools.

    The teenagers in my research also said that the stigma around poverty deterred them from asking for menstrual products. “There’s so much shame thrown on to it. There are so many labels around the whole concept of not being able to afford these things,” one explained. Another said:

    If you’re from a low-income household, you feel really awkward to go and
    pick them out, especially because the box is in the middle of the common
    room. So, to walk all the way there just to pick out some products… I
    wouldn’t say anyone is going to look at you weirdly, but obviously people
    have got that mindset of ‘oh they’re going to stare at me because I can’t
    afford it’.

    Other pupils reported that products were kept in libraries or only in one bathroom in the entire school which, in a large school, could be very far from their classrooms. One girl explained that this distance was especially problematic if her period had begun unexpectedly:

    Reception was in a completely different building across the courtyard, so it’s not like I’m going to go to the loo, discover I have my period, go to the front desk, get some stuff and then go back. It’s too time-consuming. If I have classes, I can’t use it. I feel like the period product scheme is a really good idea, but it is dependent on the schools properly utilising it.

    Exam time

    The pupils also said that they could not always access period products during examinations. They reported that this lack of access had affected their concentration during their GCSEs. They said that examinations often took place far from where they usually accessed menstrual products and, due to concerns about cheating, they could not bring their own into examination rooms.

    One girl explained: “Exams are stressful enough and then you put bleeding on to that and getting your pads and painkillers sorted. It’s another thing us girls have to worry about”. Another said: “In exams you can’t really bring anything in. They’re just going to think you’re cheating but you’re not, you just need to change yourself.”

    Teenagers said that the products they needed weren’t always available.
    New Africa/Shutterstock

    Some of the teenagers also mentioned that the products themselves were not serving their needs. Some schools only stocked internal products, such as tampons. For a range of reasons – due to culture, disability, and personal preference, among others – these are not suitable for everyone.

    Other schools only provided thin pads. This is a problem for pupils with heavy bleeding. “The school pads are not thick enough,” one girl said. “I have to change my pad five to six times a day because I come on really heavy.”

    Besides discussing the barriers they had faced to access these products, they also stated that they had never raised these issues with teachers or pastoral staff.

    Menstrual justice charity Irise International is launching a toolkit for schools on how they can improve access to both period products and toilets themselves. This is based on evidence from my book as well as Irise’s own consultations with young people.

    It is important that pupils are given the opportunity to share – in a comfortable and inclusive setting – their views with staff on which products should be available and where they are stored. This can include ordering reusable products such as cups and period underwear.

    Schools should also ensure that period products are easily accessible during exams – such as on a table outside the exam room or in nearby toilets – and that pupils know in advance where they will be kept.

    Maria Kathryn Tomlinson received funding for this research from the Leverhulme Trust under Grant ECF-2019-232.

    ref. English schools provide free period products – but they’re still not easy for pupils to get hold of – https://theconversation.com/english-schools-provide-free-period-products-but-theyre-still-not-easy-for-pupils-to-get-hold-of-249776

    MIL OSI – Global Reports

  • MIL-OSI Global: GOP lawmakers commit to big spending cuts, putting Medicaid under a spotlight – but trimming the low-income health insurance program would be hard

    Source: The Conversation – USA – By Paul Shafer, Assistant Professor of Health Law, Policy and Management, Boston University

    Speaker of the House Mike Johnson addresses the media on Feb. 25, 2025, after the House narrowly passed his budget resolution calling for big spending cuts.
    Kayla Bartkowski/Getty Images

    Efforts by Republicans in Congress to make steep spending cuts have stirred widespread concerns that the federal government may trim expenditures on Medicaid even though President Donald Trump has previously indicated that he’s unwilling to do that. This public health insurance program covers around 72 million people – about 1 in 5 Americans.

    The Conversation U.S. asked Paul Shafer and Nicole Huberfeld, Boston University health policy and law professors, to explain why cutting Medicaid spending would be difficult and what the consequences might be.

    What is Medicaid’s role in the health care system?

    Created in 1965 along with Medicare, the public health insurance program for older Americans, Medicaid pays for the health care needs of low-income adults and children, including more than 1 in 3 people with disabilities. It also covers more than 12 million who qualify for both Medicare and Medicaid because they are both poor and over 65.

    In addition, this safety net program pays the health care costs of more than 2 in 5 U.S. births. Medicaid is a joint federal/state program, driven by federal funding and rules, with the states administering it.

    The Affordable Care Act was supposed to make nearly all U.S. adults under age 65 without children who earn up to 138% of the federal poverty level eligible for Medicaid. Prior to the 2010 landmark health care reform law, adults without children in most states could not get Medicaid coverage. The Supreme Court, however, made this change optional for states.

    So far, 40 states – as well as Washington, D.C. – have participated in Medicaid expansion. The program’s growth has reduced the number of Americans without health insurance and narrowed coverage gaps for people of color and those with low-wage jobs who typically do not get employer-sponsored coverage.

    Hundreds of studies have found that Medicaid expansion has improved access to care and the health of the people who gained coverage, while reducing mortality and bolstering state economies, among other positive outcomes.

    Ten states haven’t expanded Medicaid yet. Two of them, Georgia and Mississippi, have seriously considered doing so.

    Bishop Ronnie Crudup Sr., center, seen in May 2024, has called for the Mississippi Legislature to expand Medicaid in the state.
    AP Photo/Rogelio V. Solis

    Why are you concerned about Medicaid’s funding?

    A memo circulated among House Republicans in January 2025 included a menu of up to US$2.3 trillion in Medicaid cuts over 10 years. A House budget blueprint, approved in a 217-215 vote on Feb. 25, which fell largely along party lines, indicated that the Republican majority was instead aiming to reduce Medicaid spending by $880 billion over a decade.

    To be clear, GOP lawmakers didn’t say they planned to do that.

    Instead, they told the committee that oversees Medicaid and Medicare to identify cuts of that magnitude. Experts agree that slashing Medicare spending would be harder to pull off because Trump has made it clear he considers it off-limits, but at times he has suggested he might be open to trimming Medicaid. Trump says he supports the budget plan the House approved.

    In an interesting coincidence, Medicaid itself costs around $880 billion a year between federal and state government spending. That suggests Republicans are aiming for an approximately 10% cut.

    How does the program work?

    If you’re eligible for Medicaid, by law you can enroll in the program at any time and get health insurance coverage.

    If you require treatment for a condition Medicaid covers, whether it’s breast cancer or the flu, that happens with no – or low – out-of-pocket costs. Being enrolled in Medicaid means your medical treatment is covered and cannot be denied for budgetary reasons. The federal government contributes a share of what states pay for the health care of residents who enroll, but it can’t decide how much to spend on Medicaid – states do.

    The federal match rate is linked to the per capita income of each state. That means a state with lower per capita income gets a higher federal match, with all states getting at least 50%. For states that participate in the Medicaid expansion, the federal match is 90% across the board for that population.

    A dozen states have so-called trigger laws on their books that could automatically revoke Medicaid expansion if this enhanced match rate is lowered.

    How can the federal government reduce its Medicaid spending?

    The federal government could simply adjust the match rate, shifting more of the cost of Medicaid to states. But prior proposals have suggested a larger change, either through per capita caps or block grants.

    Per capita caps would place a per-person cap on federal funding, while block grants would place a total limit on how much the federal government would contribute to a state’s costs for Medicaid each year. In turn, the states would likely cover fewer people, reduce their benefits, pay less for care, or some combination of such cost-cutting measures.

    Either per capita caps or block grants would require a massive transformation in how Medicaid operates.

    The program has always provided open-ended funding to states, and both states and beneficiaries rely on the stability of federal funds to make the program work. Imposing caps or block grants would force states to contribute significantly more money to the program or cut enrollment drastically. Assuming a substantial cut in federal funding for Medicaid, millions could lose health insurance coverage they cannot afford to get elsewhere.

    Speaker Mike Johnson said that per capita caps and changing the federal match rates are not on the table, but they were included in the earlier House Republican memo detailing potential cuts.

    House Minority Leader Hakeem Jeffries, a New York Democrat, flanked by his fellow House Democrats, criticizes the House Republicans’ budget bill at the U.S. Capitol on Feb. 25, 2025.
    Saul Loeb/AFP via Getty Images

    What else could happen?

    Another idea many Republicans say they support is to add what are known as “work requirements.” The first Trump administration approved state proposals for Medicaid beneficiaries to complete a minimum number of hours of “community engagement” in activities like work, job training, education or community service to enroll and maintain Medicaid eligibility. This is despite the fact that the majority of Medicaid enrollees already work, are disabled, are caregivers for a loved one, or are in school.

    Some politicians argue that making people work to receive Medicaid benefits would help them transition to employer-based coverage, so adding that restriction may sound like common sense. However, the paperwork this requires can lead to lots of working people getting kicked out of the program and is very costly to implement. Also, job training programs, volunteering and education, unless in a degree program, generally don’t come with health insurance coverage, making this reasoning faulty.

    When Arkansas implemented Medicaid work requirements in 2018, despite the majority of enrollees already working, about 18,000 people lost coverage. The policy was poorly understood, and enrollees had trouble reporting their work activity. What’s more, the employment of low-income adults didn’t grow.

    Is Medicaid vulnerable to waste or fraud?

    Medicaid already spends less than Medicare or private health insurance per beneficiary. That includes spending on doctors, hospitals, medications and tests.

    The Government Accountability Office – an independent, nonpartisan government agency – has estimated that preventing payments which shouldn’t be made, or overpayments, could lead to $50 billion in federal savings per year. The GAO cautions that “not all improper payments are the result of fraud.” This significant sum is still nowhere near the scale of the cuts Republicans apparently want to make.

    Would Medicaid spending cuts be popular?

    That’s very unlikely.

    Polling and focus groups show that Medicaid is quite popular.

    More than half of Americans say that the government spends too little on Medicaid, and only 15% say spending is too high.

    We believe if Medicaid cuts were to be openly debated that members of Congress would be inundated with calls from constituents urging their lawmakers to oppose them. That is what happened in 2017, when the first Trump administration tried and failed to repeal the Affordable Care Act.

    Should Medicaid be cut by anything close to $880 billion over the next decade, we’d expect to see millions of America’s poorest and most vulnerable people kicked out of the program and wind up uninsured. But that would only be the beginning of their problems. Uninsured people are more likely to wait too long before seeing a doctor when they get sick or injured, leading to worse health outcomes and widening the gaps in health between haves and have-nots.

    Paul Shafer receives research funding from the National Institutes of Health, Agency for Healthcare Research and Quality, and Department of Veterans Affairs. The views expressed in this article are those of the authors and do not necessarily reflect the position or policy of these agencies or the United States government.

    Nicole Huberfeld 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. GOP lawmakers commit to big spending cuts, putting Medicaid under a spotlight – but trimming the low-income health insurance program would be hard – https://theconversation.com/gop-lawmakers-commit-to-big-spending-cuts-putting-medicaid-under-a-spotlight-but-trimming-the-low-income-health-insurance-program-would-be-hard-250998

    MIL OSI – Global Reports

  • MIL-OSI Europe: Message of the Holy Father to participants in the General Assembly of the Pontifical Academy for Life

    Source: The Holy See

    Message of the Holy Father to participants in the General Assembly of the Pontifical Academy for Life, 03.03.2025
    The following is the Message sent by the Holy Father Francis to the participants in the General Assembly of the Pontifical Academy for Life, on the theme: “The End of the World? Crises, Responsibilities, Hopes”, taking place from 3 to 5 March at the Conference Centre of the Augustinianum:
     
    Message of the Holy Father
    The End of the world? Crises, Responsibilities, Hopes
    Dear Academicians,
    It is always a pleasure for me to address the women and men of science, as well as those in the Church who cultivate dialogue with the scientific world. Together you can serve the cause of life and the common good. And I warmly thank Archbishop Paglia and the collaborators for their service to the Pontifical Academy for Life.
    In this year’s general Assembly, you have proposed to consider the question that is today defined as “polycrisis”. It relates to some fundamental aspects of your research activity in the field of life, health and care. The term “polycrisis” evokes the dramatic nature of the historical juncture we are currently witnessing, in which wars, climate changes, energy problems, epidemics, the migratory phenomenon and technological innovation converge. The intertwining of these critical issues, which currently touch on various dimensions of life, lead us to ask ourselves about the destiny of the world and our understanding of it.
    A first step to be taken is that of examining with greater attention to our representation of the world and the cosmos. If we do not do this, and we do not seriously analyze our profound resistance to change, both as people and as a society, we will continue to do what we have always done with other crises, even very recent ones. Think of the Covid pandemic: we have, so to speak, “squandered” it; we could have worked more deeply in the transformation of consciences and social practices (cf. Apostolic Exhortation Laudate Deum, 36).
    And another important step to avoid remaining immobile, anchored in our certainties, habits and fears, is to listen carefully to the contribution of areas of scientific knowledge. The theme of listening is decisive. It is one of the key words of the entire synodal process we have undertaken, and which is now in its implementation phrase. I therefore appreciate that your way of proceeding reflects its style. I see in it the attempt to practice in your specific sphere that “social prophecy” to which the Synod was dedicated (Final Document, 47). In the encounter with people and their stories, and in listening to scientific knowledge, we realize that our parameters regarding anthropology and culture require profound revision. This was also the origin of the intuition of the study groups on certain topics that emerged during the synodal process. I know that some of you are part of them, also valuing the work done by the Academy for Life over the past years, work for which I am very grateful.
    Listening to the sciences continually offers us new knowledge. Consider what we are told about the structure of matter and the evolution of living beings: there emerges a far more dynamic view of nature compared to what was thought in Newton’s time. Our way of understanding “continuous creation” must be re-elaborated, in the knowledge that it will not be technology that saves us (cf. Encyclical Letter Laudato si’, 101): endorsing utilitarian deregulation and global neoliberalism means imposing the law of the strongest as the only rule; and it is a law that dehumanizes.
    We can cite as an example of this type of research Fr. Teilhard de Chardin and his attempt – certainly partial and unfinished, but daring and inspiring – to enter seriously into dialogue with the sciences, practising an exercise in trans-disciplinarity. It is a risky path, which leads us to wonder: “I ask whether it is necessary for someone to throw the stone into the pond – indeed, to end up being ‘killed’ – to open the way”.1 Thus he launched his insights that focused on the category of relationship and interdependence between all things, placing homo sapiens in close connection with the entire system of living things.
    These ways of interpreting the world and its evolution, with the unprecedented forms of relatedness that correspond to it, can provide us with signs of hope, which we are seeking as pilgrims during this Jubilee year (cf. Bull Spes non confundit, 7). Hope is the fundamental attitude that supports us on the journey. It does not consist of waiting with resignation, but of striving with zeal towards true life, which leads well beyond the narrow individual perimeter. As Pope Benedict XVI reminded us, hope “is linked to a lived union with a ‘people’, and for each individual it can only be attained within this ‘we’” (Encyclical Letter Spe salvi, 14).
    It is also because of this community dimension of hope, faced with a complex and planetary crisis, that we are urged to value instruments with a global reach. We must unfortunately note a progressive irrelevance of international bodies, which are also undermined by short-sighted attitudes, concerned with protecting particular and national interests. And yet we must continue to commit ourselves with determination for “more effective world organizations, equipped with the power to provide for the global common good, the elimination of hunger and poverty, and the sure defence of fundamental human rights” (Encyclical Letter Fratelli tutti, 172). In such a way, a multilateralism is promoted that does not depend on changing political circumstances or the interests of the few, and which has stable effectiveness (cf. Apostolic Exhortation Laudate Deum, 35). It is an urgent task which regards the whole of humanity.
    This vast scenario of motivations and objectives is also the scope of your Assembly and of your work, dear members of the Academy for Life. I entrust you to the intercession of Mary, Seat of Hope and Mother of Hope, “as we, the pilgrim people, the people of life and for life, make our way in confidence towards ‘a new heaven and a new earth’ (Rev 21:1)” (Saint John Paul II, Encyclical Letter Evangelium vitae, 105).
    For all of you and for your work, I impart my heartfelt blessing.
    Rome, from “Gemelli” Hospital, 26 February 2025
    FRANCIS
    ____________________
    1Quotation from B. DE SOLANGES, Teilhard de Chardin. Témoignage et étude sur le développement de sa pensée, Toulouse 1967, 54

    MIL OSI Europe News

  • MIL-OSI Economics: Asian Development Blog: Multi-Stakeholder Solutions Needed for Women Entrepreneurs in South Asia

    Source: Asia Development Bank

    Gender-inclusive entrepreneurship in South Asia remains hindered by financial, social, and structural barriers. A holistic approach—combining access to finance, business development services, and multi-stakeholder partnerships—can accelerate women’s entrepreneurship and foster inclusive growth.

    While gender-inclusive entrepreneurship is a significant enabler of economic growth, only 18% of firms in South Asia are owned by women, compared to 34% globally. Women in the region lack capital and finance, as well as opportunities to access business networks and effectively market products and services. They have limited engagement in trade activities and with innovative solutions. 

    These challenges are compounded by structural barriers, such as social and customary norms and disproportionate household and care responsibilities that limit women’s opportunities as entrepreneurs and hinder their economic participation. 

    The following approaches, which should be tailored to distinct contexts, cultures, and levels of development, can help boost women’s entrepreneurship in South Asia:

    Create an inclusive business ecosystem: Accelerating women’s entrepreneurship in South Asia, a region with complexities and inequalities intertwined, requires development of an ecosystem of inclusive interventions and investments, policies, private sector engagement, and promoting resources that give women access to capital, skills, innovation, services and new markets.

    Access to finance for women has positive direct and indirect impact on business and economic empowerment, reducing poverty, and achieving good health and well-being. 

    Addressing only one issue in the chain of challenges cannot produce a sustainable effect; rather, adopting a holistic approach that creates an enabling environment by explicitly addressing constraints of women and promoting women’s entrepreneurship through specific actions is essential for long-term strategic changes that can support inclusive economic growth and development in South Asia. 

    Providing access to finance for women can be life changing: Limited financial resources confine women to smaller-scale business operations at the micro level in countries such as Sri Lanka, Bhutan, and Bangladesh. Challenges related to capital are often rooted in gender biases, lack of tailored financial products, absence of collateral, and limited understanding of financial institutions.

    Applying innovations in finance, more targeted approaches, including for women in more vulnerable positions, can help overcome the barriers related to social norms, mobility, and control of resources and assets. While 65% of women-led small and medium enterprises in developing countries are unserved financially, access to finance for women has positive direct and indirect impact on business and economic empowerment, reducing poverty, and achieving good health and well-being. 

    Providing targeting approaches and giving access to finance has been done in Bangladesh, India, Sri Lanka, Nepal, and Bhutan and has helped women to expand and grow their businesses. Targeting women as clients has a business case as well, offering opportunities for the private sector to capitalize on this important segment by providing tailored financial products and services.

    Offer comprehensive business development services: Because women-owned enterprises are under-financed and under-resourced in South Asia, offering non-financial services can be a driver of business growth. Business development services, such as mentoring, financial advisory, legal support, skills training, and accessing new markets and networks can be key drivers for women entrepreneurs in Bangladesh, Maldives, Sri Lanka, and other South Asian countries. 

    Providing tailored services for women in start-ups is equally important as challenges at this stage are intertwined with a lack of confidence, social norms, and expectations towards women with limited resources. While also facing other forms of discrimination (particularly, in India and Nepal), supplying women with these services can lead to more equitable access to non-financial resources and significant economic growth on local and regional levels. 

    Leverage multi-stakeholder partnerships: Development partners, governments, and private sector companies – all can play role in advancing women’s entrepreneurship in South Asia. Gender-inclusive investments by development partners, improving policy frameworks by governments, and fostering bold actions by the private sector through targeted investments and financial products can all address the gender divide in entrepreneurship. Moreover, partnerships across stakeholders can only enhance these actions. 

    The path to advancing women’s entrepreneurship and engagement of stakeholders needs to be deepened to also address often discriminatory underlying social norms and practices that hold women back. This is particularly so in South Asia, where gender disparities are intertwined with religion, caste, ethnicity, and other social exclusions that exacerbate gender inequalities.

    MIL OSI Economics

  • MIL-OSI Economics: Development Asia: Harnessing Youth and Infrastructure for Timor-Leste’s Sustainable Future

    Source: Asia Development Bank

    Timor-Leste presents a unique mix of strengths and weaknesses that shape its development trajectory.

    Youth and labor supply. The country’s youthful population is part of its strength, with a median age of 20.7 years and 64.6% of its citizens under 30. By 2037, the labor forces is expected to grow by 34.8% compared to the 2022 population. Depending on various population growth scenarios, the labor force will increase by at least 26% to 27% over the next 15 years based on the latest population census (Figure 1). This increase in the working-age labor force presents a significant opportunity to boost employment prospects and sustain higher economic growth.

    Figure 1: Supply of Labor Force

    Source: The National Institute of Statistics (INETL). 2023. Timor-Leste Population and Housing Census 2022; Author’s estimate.

    Strategic location and vibrant democracy. Geographically situated in Southeast Asia, Timor-Leste holds a strategic position at the intersection of key sea lines in the Indo-Pacific region—giving it an advantage in terms of regional investments, maritime trade, and security. Benefitted from a robust electoral process, pluralism, and civil liberties, Timor-Leste is ranked 45th out of 167 countries in the 2023 Democracy Index, surpassing the average indices of the Association of Southeast Asian Nations (ASEAN), Asia and the Pacific, and the world (Figure 2).

    Figure 2: Democracy Index

    Source: The Economist Intelligence Unit (EIU). 2024. Democracy Index 2023-Age of Conflict.

    Resource endowment and savings. The country boasts significant oil and gas reserves in the Timor Sea, especially in the Greater Sunrise gas and condensate field. In 2005, it established a petroleum fund as a sovereign wealth fund, primarily sourced from petroleum revenues from the Bayu-Undan field and investment income from the petroleum fund. By the end of 2024, the petroleum fund’s balance has reached nearly $18.3 billion, exceeding the non-petroleum gross domestic product (GDP) by more than tenfold (Figure 3).

    Figure 3: The Petroleum Fund

    Source: The Central Bank of Timor-Leste (BCTL). 2024. The Petroleum Fund Reports; Author’s estimate.

    High poverty and food and nutrition insecurity. Despite its strengths, Timor-Leste faces significant challenges with poverty and food insecurity. Issues—such as poverty rate standing at 41.8% based on the national poverty line and 48.3% when measured using the multidimensional poverty, over 62.5% of the population experiencing food insecurity, 42% of households dealing with acute food insecurity, and half of the children under five years old are stunted—represent major barriers to development. Malnutrition, reduced cognitive development, impaired learning ability, and low productivity have limited human capital development.

    Narrow economic base and high dependence on the petroleum fund. The economy remains undiversified and highly susceptible to domestic and external shocks, including disasters from natural hazards and trade fluctuations. GDP growth has been low and volatile, heavily reliant on public expenditures and the petroleum fund, projected to be depleted by 2035 based on current spending. From 2009 to 2023, the average annual real GDP growth was 2.9%, but it decelerated to just 1% over the past decade, highly correlated with the growth in budget expenditure and withdrawals from the petroleum fund (Figure 4).[1]

    Figure 4: GDP Growth and Public Spending

    Source: Ministry of Finance of Timor-Leste. 2009-2024. Budget Transparency Portal; Author’s estimate.

    Lack of competitiveness and budget deficit. The high cost of doing business stems from challenges related to connectivity, land title issues, limited electricity and clean water supply, and low labor productivity—contributing to lack of competitiveness. The underdeveloped private sector contributes to a low domestic revenue base, averaging only 12.3% over the past 15 years. In contrast, total spending has been exceedingly high, averaging 90.5% of GDP. This imbalance has resulted in a significant government budget deficit, averaging 35.4% of GDP over the same period, primarily financed through persistent and excessive withdrawals from the petroleum fund (Figure 5).[2] As of 2023, GDP per capita and gross national income per capita remained low at $1,324 and $1,294 respectively. This current economic structure underscores the urgent need for economic diversification and development of a robust private sector to ensure sustainable growth and resilience against economic shocks.

    Figure 5: Government Budget

    ESI = estimated sustainable income, GDP = gross domestic product, PF = petroleum fund.
    Source: Ministry of Finance of Timor-Leste. 2009-2024. Budget Transparency Portal; Author’s estimate.

    Infrastructure gaps and limited basic services. In addition to underdeveloped human, institutional, and private sector capacities, Timor-Leste faces significant gaps and challenges in infrastructure development and provision of basic services. The country was ranked 46th out of 50 in terms of facilities supporting regulatory compliance and institutions and infrastructure enabling business activities. Due to inadequate infrastructure connectivity, access to markets and essential services—such as healthcare, education, and clean water—is limited, particularly in rural areas where 71.4% of the population resides. Significant investment in human capital, institutional strengthening, and infrastructure and logistics is crucial to support development and improve living standards.

    Lack of policy continuity. New administrations often bring changes in policies and program orientations, along with high staff turnover in the public sector. To advance ongoing priority initiatives and achieve development goals, it is crucial to strengthen institutions and ensure policy continuity and certainty.

    Suboptimal allocation of government resources to social sectors. Over the past 15 years, the compound annual growth rate of current budget expenditures in Timor-Leste was 8.9%, significantly outpacing the 4.2% compound annual growth rate of capital expenditures. Consequently, the share of current spending in the total budget has risen to 79% in 2024 from 65% in 2009. Despite the increase, there remains a persistent misallocation of resources, particularly in health and education. This misallocation leads to intergenerational human capital issues and economic disparity. Notably, the planned spending from the veterans’ fund for 2025 is nearly double the annual healthcare budget. Education spending has remained low at 7.6% of total government expenditure, significantly below the ASEAN historical average of 13.8%. Similarly, healthcare expenditure per capita in Timor-Leste is only $59, starkly contrasted with the ASEAN average of $630.

    MIL OSI Economics

  • MIL-OSI Global: In many of Appalachia’s flood-ravaged areas, residents have little choice but rebuild in risky locations

    Source: The Conversation – USA – By Kristina P. Brant, Assistant Professor of Rural Sociology, Penn State

    Parts of the North Fork of the Kentucky River flooded in July 2022, and again in February 2025. Arden S. Barnes/For The Washington Post via Getty Images

    On Valentine’s Day 2025, heavy rains started to fall in parts of rural Appalachia. Over the course of a few days, residents in eastern Kentucky watched as river levels rose and surpassed flood levels. Emergency teams conducted over 1,000 water rescues. Hundreds, if not thousands of people were displaced from homes, and entire business districts filled with mud.

    For some, it was the third time in just four years that their homes had flooded, and the process of disposing of destroyed furniture, cleaning out the muck and starting anew is beginning again.

    Historic floods wiped out businesses and homes in eastern Kentucky in February 2021, July 2022 and now February 2025. An even greater scale of destruction hit eastern Tennessee and western North Carolina in September 2024, when Hurricane Helene’s rainfall and flooding decimated towns and washed out parts of major highways.

    Scenes of flooding from several locations across Appalachia in February 2025.

    Each of these events was considered to be a “thousand-year flood,” with a 1-in-1,000 chance of happening in a given year. Yet they’re happening more often.

    The floods have highlighted the resilience of local people to work together for collective survival in rural Appalachia. But they have also exposed the deep vulnerability of communities, many of which are located along creeks at the base of hills and mountains with poor emergency warning systems. As short-term cleanup leads to long-term recovery efforts, residents can face daunting barriers that leave many facing the same flood risks over and over again.

    Exposing a housing crisis

    For the past nine years, I have been conducting research on rural health and poverty in Appalachia. It’s a complex region often painted in broad brushstrokes that miss the geographic, socioeconomic and ideological diversity it holds.

    Appalachia is home to a vibrant culture, a fierce sense of pride and a strong sense of love. But it is also marked by the omnipresent backdrop of a declining coal industry.

    There is considerable local inequality that is often overlooked in a region portrayed as one-dimensional. Poverty levels are indeed high. In Perry County, Kentucky, where one of eastern Kentucky’s larger cities, Hazard, is located, nearly 30% of the population lives under the federal poverty line. But the average income of the top 1% of workers in Perry County is nearly US$470,000 – 17 times more than the average income of the remaining 99%.

    This income and wealth inequality translates to unequal land ownership – much of eastern Kentucky’s most desirable land remains in the hands of corporations and families with great generational wealth.

    When I first moved to eastern Kentucky in 2016, I was struck by the grave lack of affordable, quality housing. I met families paying $200-$300 a month for a small plot to put a mobile home. Others lived in “found housing” – often-distressed properties owned by family members. They had no lease, no equity and no insurance. They had a place to lay one’s head but lacked long-term stability in the event of disagreement or disaster. This reality was rarely acknowledged by local and state governments.

    Eastern Kentucky’s 2021 and 2022 floods turned this into a full-blown housing crisis, with 9,000 homes damaged or destroyed in the 2022 flood alone.

    “There was no empty housing or empty places for housing,” one resident involved in local flood recovery efforts told me. “It just was complete disaster because people just didn’t have a place to go.”

    Most homeowners did not have flood insurance to assist with rebuilding costs. While many applied to the Federal Emergency Management Agency for assistance, the amounts they received often did not go far. The maximum aid for temporary housing assistance and repairs is $42,500, plus up to an additional $42,500 for other needs related to the disaster.

    The federal government often provides more aid for rebuilding through block grants directed to local and state governments, but that money requires congressional approval and can take months to years to arrive. Local community coalitions and organizations stepped in to fill these gaps, but they did not necessarily have sufficient donations or resources to help such large numbers of displaced people.

    Affordable rental housing is hard to find in much of Appalachia. When flooding wipes out homes, as Jackson, Ky., saw in July 2022 and again in February 2025, it becomes even more rare.
    Michael Swensen/Getty Images

    With a dearth of affordable rentals pre-flood, renters who lost their homes had no place to go. And those living in “found housing” that was destroyed were not eligible for federal support for rebuilding.

    The sheer level of devastation also posed challenges. One health care professional told me: “In Appalachia, the way it usually works is if you lose your house or something happens, then you go stay with your brother or your mom or your cousin. … But everybody’s mom and brother and cousin also lost their house. There was nowhere to stay.” From her point of view, “our homelessness just skyrocketed.”

    The cost of land – social and economic

    After the 2022 flood, the Kentucky Department for Local Government earmarked almost $300 million of federal funding to build new, flood-resilient homes in eastern Kentucky. Yet the question of where to build remained. As another resident involved in local flood recovery efforts told me, “You can give us all the money you want; we don’t have any place to build the house.”

    It has always been costly and time-intensive to develop land in Appalachia. Available higher ground tends to be located on former strip mines, and these reclaimed lands require careful geotechnical surveying and sometimes structural reinforcements.

    If these areas are remote, the costs of running electric, water and other infrastructure services can also be prohibitive. For this reason, for-profit developers have largely avoided many counties in the region. The head of a nonprofit agency explained to me that, because of this, “The markets have broken. … We have no [housing] market.”

    Eastern Kentucky’s mountains are beautiful, but there are few locations for building homes that aren’t near creeks or rivers. Strip-mined land, where mountaintops were flattened, often aren’t easily accessible and come with their own challenges.
    Posnov/Moment via Getty Images

    There is also some risk involved in attempting to build homes on new land that has not previously been developed. A local government could pay for undeveloped land to be surveyed and prepared for development, with the prospect of reimbursement by the U.S. Department of Housing and Urban Development if housing is successfully built. But if, after the work to prepare the land, it is still too cost-prohibitive to build a profitable house there, the local government would not receive any reimbursement.

    Some counties have found success clearing land for large developments on former strip mine sites. But these former coal mining areas can be considerable distances from towns. Without robust public transportation systems, these distances are especially prohibitive for residents who lack reliable personal transportation.

    Another barrier is the high prices that both individual and corporate landowners are asking for properties on higher ground.

    The scarcity of desirable land available for sale, combined with increasingly urgent demand, has led to prices unaffordable for most. Another resident involved in local flood recovery efforts explained: “If you paid $5,000 for 30 acres 40 years ago, why won’t you sell that for $100,000? Nope, [they want] $1 million.” That makes it increasingly difficult for both individuals and housing developers to purchase land and build.

    One reason for this scarcity is the amount of land that is still owned by outside corporate interests. For example, Kentucky River Properties, formerly Kentucky River Coal Corporation, owns over 270,000 acres across seven counties in the region. While this landholding company leases land to coal, timber and gas companies, it and others like it rarely permit residential development.

    But not all unused land is owned by corporations. Some of this land is owned by families with deep roots in the region. People’s attachment to a place often makes them want to stay in their communities, even after disasters. But it can also limit the amount of land available for rebuilding. People are often hesitant to sell land that holds deep significance for their families, even if they are not living there themselves.

    Rural communities are often tight-knit. Many residents want to stay despite the risks.
    AP Photo/Timothy D. Easley

    One health care professional expressed feeling torn between selling or keeping their own family property after the 2022 flood: “We have a significant amount of property on top of a mountain. I wouldn’t want to sell it because my papa came from nothing. … His generation thought owning land was the greatest thing. … And for him to provide his children and his grandchildren and their great-grandchildren a plot of land that he worked and sweat and ultimately died to give us – people want to hold onto that.”

    She recognized that land was in great demand but couldn’t bring herself to sell what she owned. In cases like hers, higher grounds are owned locally but still remain unused.

    Moving toward higher ground, slowly

    Two years after the 2022 flood, major government funding for rebuilding still has not resulted in a significant number of homes. The state has planned seven communities on higher ground in eastern Kentucky that aim to house 665 new homes. As of early 2025, 14 houses had been completed.

    Progress on providing housing on higher ground is slow, and the need is great.

    In the meantime, when I conducted interviews during the summer and fall of 2024, many of the mobile home communities that were decimated in the 2022 flood had begun to fill back up. These were flood-risk areas, but there was simply no other place to go.

    Last week, I watched on Facebook a friend’s live video footage showing the waters creeping up the sides of the mobile homes in one of those very communities that had flooded in 2022. Another of my friends mused: “I don’t know who constructed all this, but they did an unjustly favor by not thinking how close these towns was to the river. Can’t anyone in Frankfort help us, or has it gone too far?”

    With hundreds more people now displaced by the most recent flood, the need for homes on higher grounds has only expanded, and the wait continues.

    Kristina Brant has received funding from the National Science Foundation and United States Department of Agriculture to support her past and ongoing research in rural Appalachia.

    ref. In many of Appalachia’s flood-ravaged areas, residents have little choice but rebuild in risky locations – https://theconversation.com/in-many-of-appalachias-flood-ravaged-areas-residents-have-little-choice-but-rebuild-in-risky-locations-240429

    MIL OSI – Global Reports

  • MIL-OSI Global: The urgent mental health needs of young people: Lessons for Canada from a global commission

    Source: The Conversation – Canada – By Tovah Cowan, Postdoctoral Fellow in Psychiatry, McGill University

    Since 2015, youth mental health has noticeably declined. Currently, 1.25 million young people in Canada require mental health support. (Shutterstock)

    Canada urgently needs to take action to support the well-being of young people and secure a healthier and more prosperous future for generations to come.

    Since 2015, well before the COVID-19 pandemic began, self-reported mental health has notably declined among young people. Currently, 1.25 million young people require mental health support. According to Mental Health Research Canada, in 2024, 19 per cent of Canadians between 16 and 34 years old accessed mental health services in the previous year while another 12 per cent felt they needed services but did not receive them.

    Megatrends

    The recently published Lancet Psychiatry Commission on Youth Mental Health shows that this problem is global, and in part driven by megatrends — major and long-lasting societal changes such as climate change, insecure employment and growing intergenerational inequality. These issues are situated within decades of colonial and neoliberal political, social and economic policies.




    Read more:
    What exactly is neoliberalism?


    In Canada, the effects of historic and ongoing colonialism on First Nations, Métis and Inuit youth are heartbreakingly clear in rates of suicide, which are six times higher in First Nations youth than non-Indigenous youth, and 33 times higher in young Inuit women than non-Indigenous young women. Additionally, there are gaps in services and barriers to access for Indigenous, 2SLGBTQ+, newcomer, Black and racialized young people, leading to disparities in care and support.

    To support youth mental health, Canada must work towards reversing these megatrends while also investing in youth mental health services.

    The youth mental health problem is global, and in part driven by ‘megatrends’ — major and long-lasting societal changes such as climate change, insecure employment and growing intergenerational inequality.
    (Shutterstock)

    As a team of mental health researchers and professionals, we are deeply committed to improving youth mental health. Without timely support, mental health challenges can disrupt education, relationships and career development, creating long-term effects for young people, their families and their communities. Unaddressed mental health issues can persist into adulthood, becoming more difficult to treat, adding preventable strain to health-care systems and hindering economic growth due to lost productivity.

    We were inspired by The Lancet Psychiatry Commission on Youth Mental Health, which calls for global action to address this urgent mental health crisis affecting young people. This global initiative involved researchers from diverse fields, service providers and young people, and was co-led by Srividya Iyer (a co-author on this piece and Canada Research Chair in Youth, Mental Health, and Learning Health Systems). It advances a framework for improving youth mental health care, integrating all sectors providing services relevant to mental health (for example, community centres, stand-alone clinics, hospitals) and all types of interventions, ranging from prevention to specialized services for youth with long-term mental health problems.

    The situation in Canada

    Canada is a global leader in creating new mental health services for youth, which began with the creation of a network of programs for youth with psychosis. Lessons learned have inspired transformation in broader youth mental health services, called “Integrated Youth Services” (IYS).

    Designed with input from youth and their families, IYS do not require transition from pediatric to adult care at age 18, which prevents youth from slipping through the cracks between the two systems. IYS integrate mental health, medical health and other social services; and create primary mental health care services.

    Today, there are almost 80 IYS hubs in most jurisdictions across Canada, with approximately 50 more in development. In the 2024 federal budget, a $500 million investment in community-based youth mental health services was the most positively received item by the public.

    These services and investments represent Canada’s critical commitment to youth mental health. However, there have been relatively fewer efforts to address other elements responding to factors contributing to worse youth mental health, such as the ongoing harms of colonization and the climate crisis.

    To truly address the youth mental health crisis, we must move beyond just creating services and into creating a world that supports young people to thrive. In these areas, young people themselves have shown us the way through initiatives like the Indigenous Climate Action Youth Leadership, the Anti-Racist Youth Lab and EveryChildNow, which takes action on youth poverty.

    What can we do

    Society must embrace a strong cultural shift that prioritizes a duty to young people.
    (Shutterstock)

    To support young people, the Lancet report highlights that society must embrace a strong cultural shift that prioritizes a duty to young people, future generations and intergenerational equity, ensuring that present-day policies consider their long-term impacts. The influence of megatrends suggests that activism on any of these societal issues can benefit youth mental health.

    For those who want to take action directly, advocating for increasing mental health and social service funding, supporting local organizations dedicated to young people, involving youth in decision-making processes, and fostering nurturing social communities are all important steps.

    In light of the upcoming federal election, Canadians should demand that all political parties have a clear plan for youth mental health. Policymaking should prioritize youth, family and community needs. Policies should be evidence-based, especially since intuitively helpful but untested ideas may have unintended consequences (for example, negative effects of universal prevention efforts) or can be complicated (such as the relationship between social media use and youth mental health).

    Continuous funding for mental health research can generate knowledge that can inform practice and policy, anticipate and respond to future priorities, test innovative interventions (like nature-based, social prescribing and intergenerational connection) and improve existing systems and interventions.

    Young people are tomorrow’s leaders, innovators and contributors. Ignoring their mental health problems undermines their potential and jeopardizes Canada’s ability to build a prosperous, inclusive society. Prioritizing youth mental health is not just a strategic investment for the country’s resilience — it is an ethical imperative.

    Tovah Cowan receives funding from CIHR for a Planning and Dissemination grant supporting a project related to improving learning health systems for youth mental health services. Her current salary is paid through a CIHR grant previously awarded to Dr. Iyer.

    Camila Velez receives funding from the Canadian Institutes of Health Research (CIHR) through a Doctoral Scholarship and a Planning and Dissemination grant for an International Symposium on arts-based research in youth mental health. Her current research assistant salary is paid through a CIHR grant previously awarded to Dr. Iyer.

    Nora Morrison’s current salary is paid through a CIHR grant previously awarded to Dr. Srividya Iyer.

    Rubén Valle receives his salary from a CIHR grant previously awarded to Dr. Iyer.

    Srividya N. Iyer is supported by the Canada Research Chairs Program (Tier 1) and has received peer-reviewed grants from the Canadian Institutes of Health Research, Fonds de Recherche du Québec – Santé and the International Development Research Centre.

    ref. The urgent mental health needs of young people: Lessons for Canada from a global commission – https://theconversation.com/the-urgent-mental-health-needs-of-young-people-lessons-for-canada-from-a-global-commission-245039

    MIL OSI – Global Reports

  • MIL-OSI Economics: Finance in Common Summit urges global development finance institutions to harness collective power to address global poverty

    Source: African Development Bank Group
    The fifth edition of the Finance in Common Summit (FiCS) concluded on Friday in Cape Town, South Africa, with strong calls for global development finance institutions to work together to address poverty and development challenges. South African Finance Minister Enoch Godongwana led the call.

    MIL OSI Economics

  • MIL-OSI NGOs: Over 500,000 people demand oil & gas companies pay for climate damages

    Source: Greenpeace Statement –

    Cape Town, February 28, 2024 — Greenpeace Africa delivered on Friday 28th February a global petition on behalf of more than half a million people, calling on governments to force fossil fuel companies to “stop their climate wrecking activities” and “repair and pay for the damage they have caused.” The petition was handed over to a coalition of 17 countries and groups currently reviewing “polluter pays” levies [1] at the sidelines of the meeting of the Finance in Commons Summit in Cape Town.[2] In parallel, Cape Town’s iconic Table Mountain National Park is being consumed by wildfires, in the midst of the worst drought in more than 100 years across Southern Africa.[3]

    Sherelee Odayar, Greenpeace Africa’s Oil and Gas Campaigner, said: “It is unfair to expect that ordinary people will face the climate crisis with cents and rands, while the polluters in chief will pocket billions. It is also impractical: Most world governments simply cannot afford to provide climate solutions at the needed scale. Drought, extreme heat, storms, floods and fires are disproportionately affecting Africa and other Global Majority countries. Science and technology can help bring relief, now governments must make polluters pay to deliver justice and raise the necessary funds.”  

    Signatures by people from Africa, the Middle East, Europe, North America, and Southeast Asia were collected between 2023-24, the two hottest years since records began, replete with extreme weather events fuelled by greenhouse gas emissions from the oil and gas industry. At the same, five oil and gas corporations alone reported over US$100 billion cumulatively in profit for last year. 

    The collective demand was presented to the secretariat of the Global Solidarity Levies Taskforce, a coalition of 17 countries and groups, co-led by Barbados, France, and Kenya. It contributes to a public process of consultation which started last month concerning a series of proposals being considered by the governments who are members of the Taskforce, including options to apply levies on fossil fuel industry profits and extraction to fund climate action.

    A letter accompanying the petition reminds that oil and gas companies “knowingly lied about climate change and lobbied to slow action” and are failing to pay their fair share. “Super rich individuals and other polluting industries… should also be held to account. Making polluters pay for the damages they have caused is vital to help communities across the world to recover, rebuild and invest in climate solutions.” 

    The petition’s demands are in line with public polling across a range of geographies, including research recently commissioned by Greenpeace International, which has consistently demonstrated the strong popularity of increasing taxes on oil and gas profits. 

    Greenpeace Africa calls for designing tax and penalty mechanisms in a way that is fair and proportionate – including: ensuring a well-managed and just transition out of coal, oil and gas, while imposing more polluter taxes and fines on the industry to help fund the transition; taking steps to prevent knock-on increases in prices and the cost of living, especially for people living in poverty; and ensuring that people most impacted by climate change benefit the most from revenues raised. 

    Notes:

    [1] The Global Solidarity Levies Task Force: For People and the Planet explores feasible, scaleable and sensible options for levies to raise additional resources for climate and development: https://globalsolidaritylevies.org/world-leaders-pledge-action-on-climate-finance-as-coalition-for-solidarity-levies-launched-at-cop29/ 

    [2] The 5th Finance in Common Summit (FiCS), co-hosted by the Development Bank of Southern Africa (DBSA) and the Asian Infrastructure Investment Bank (AIIB): https://www.financeincommonsummit2025.com/ 

    [3] A night of flames: Table Mountain fire lights up the Cape Town skyline https://www.capetownetc.com/news/a-night-of-flames-table-mountain-fire-lights-up-the-ct-skyline/ ; Climate change behind the 2021 Table Mountain fire – study https://mg.co.za/the-green-guardian/2023-03-02-climate-change-behind-the-2021-table-mountain-fire-study/ 

    Photos: Handover of petition by Greenpeace Africa campaigner

    For more information, contact: 

    Greenpeace Africa Press Desk: [email protected] 

    Greenpeace International Press Desk: [email protected], +31 (0) 20 718 2470 (available 24 hours). Follow @greenpeacepress for our latest international press releases.

    MIL OSI NGO

  • MIL-OSI United Nations: ‘This is our land’ – Building Gaza’s future from the wreckage of war

    Source: United Nations MIL OSI b

    Peace and Security

    At night he sleeps under a tarpaulin sheet on the ruins of his family home. Like others returning to northern Gaza after months of being displaced by war, Sufian Al-Majdalawi clings to whatever he can find.

    Using small tools and his bare hands, he sifts through mounds of twisted debris and dirt to try and unearth belongings and important paperwork such as property deeds to prove he is the legal owner.

    He dreams of one day being able to rebuild; in the short-term, he hopes that even the rubble might hold some value.

    The war in Gaza has left an unprecedented level of destruction, with an estimated 51 million tons of rubble blanket the landscape where bustling neighborhoods once thrived.  According to a new UN damage and needs assessment report, over 60 per cent of homes – amounting to some 292,000 – and 65 per cent of roads have been destroyed, across the approximately 360 square kilometre enclave.

    UN News

    Debris and rubble lines the streets of Gaza.

    As the international community ponders Gaza’s future and how to rebuild, Al-Majdalawi is sure of one thing: “We will not leave. That will not happen. This is our land.’’

    Moving cautiously through the rubble, Yasser Ahmed says: “I am looking for my papers.” His desperate search is made even more daunting because adjacent structures have collapsed in on each other. “Maybe while I am removing the rubble, I will find a human body, an explosive device,’’ he adds, underlining the huge emotional and physical risks of dislodging debris in a war zone.

    In collaboration with the Palestinian Ministry of Public Works and Housing, the UN Development Programme-led Programme of Assistance to the Palestinian People and the UN Environment Programme co-chair a debris management group that brings together more than 20 entities to support the response to this critical issue across the Gaza Strip.

    UN staff are drawing on similar experiences in Mosul, Iraq, and the Syrian cities of Aleppo and Latakia, all decimated by war. 
    UNOPS, a UN agency that provides infrastructure, procurement and project management services around the world, is part of Gaza’s ‘Debris Management Working Group.’

    UN News

    15 months of war in Gaza resulted in more than 50 million tons of debris.

    The agency, which has conducted threat and risk assessments throughout the Territory, has developed advanced GeoAI and remote sensing techniques, including 3D modeling technologies, to enhance explosive hazard evaluation and rubble removal strategies.

    UNOPS Executive Director Jorge Moreira da Silva, following a recent trip to Gaza, says explosive hazard education had been provided to 250,000 Palestinians and some 1,000 humanitarian workers, providing “critical knowledge to stay safe and navigate explosive hazards effectively.”

    UNDP, which helps countries reduce poverty, build resilience and achieve sustainable development, started removing rubble from Gaza in December 2024, weeks before a ceasefire began.

    UNDP’s Sarah Poole says about 28,500 tons of rubble were initially removed, and 290 tons of it used for roadworks to enhance humanitarian operations, restoring access to sites such as a hospital, a bakery and a critical water supply plant.

    Poole describes the issue of land and property ownership in Gaza as “very complex” – particularly when title deeds, inheritance records and other legal documents are lost or destroyed.

    Amjad Al-Shawa, Director of the network of NGOs in the Gaza Strip, says the issue of rubble represents a “major challenge.’’

    “We need a mechanism to dispose of the rubble which will take a long time, and which requires resources that are not available in the Gaza Strip,’’ he says.

    “Today, this rubble also represents the possessions of the residents. Many disputes may arise between families.’’

    Some $7 million has already been made available from various donors to aid the rubble removal – but Poole says an additional $40 million is needed “in this initial phase in order to significantly scale up the work.”

    “The issue of access and the ability to bring in some of the heavy equipment that is needed is also absolutely essential,” he adds.

    The challenge ahead looks daunting: Once-thriving neighborhoods have been leveled – very little remains. In this Territory where people turning 18 have already lived through five massive armed conflicts, the destruction this time is significantly worse.

    The cost of the damage to physical infrastructure has been estimated at some $30 billion, according to the UN. The housing sector was the hardest hit, with losses amounting to $15.8 billion. The costs of recovery and reconstruction are estimated at over $53 billion.

    UN News

    Yasser Ahmed stands in front of his destroyed home in Jabalia, in the north of the Gaza Strip.

    “There is no residential life here. I look around and see nothing but destruction,’’ says Ahmed, standing in front of the wreckage of his house. “The hard work of 59 years – the number of years of my life – was lost, and everything is gone.’’

    “Everything is under the rubble,’’ he says. “I miss my home … a person is only comfortable in his home and his own place.”

    Nearby, Ramadan Katkat sits on the remnants of his home. Living in tents precariously perched atop mounds of rubble, he echoes the despair felt by many: Beneath them could lie a perilous mix of unexploded devices and human remains.

    His wish? “We want to live.’’

    Al-Majdalawi is adamant, though: “We are capable of rebuilding the land.”

    UN News

    Ramadan Kutkut sits on the rubble of his house in Jabalia, in the northern Gaza Strip.

    With a fragile ceasefire holding for now, regional talks are underway to develop a plan for rebuilding Gaza after 16 months of brutal conflict. Next Tuesday, UN Secretary-General António Guterres will travel to Cairo for a summit with Arab leaders focused on reconstruction. He aims to advocate for sustainable rebuilding efforts and a cohesive, transparent, and principled political resolution.

    MIL OSI United Nations News

  • MIL-OSI USA: Cortez Masto Announces Sparks Elementary School Principal as Guest to Presidential Address to Congress

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto

    Jason Shipman is the Principal at Florence Drake Elementary, the highest-performing Title I school in the region 

    Washington, D.C. – Today, U.S. Senator Catherine Cortez Masto (D-Nev.) announced Jason Shipman, Principal at Florence Drake Elementary School in Sparks, as her guest to President Donald Trump’s 2025 Presidential Address to Congress on March 4, 2025. Under his leadership, Florence Drake Elementary has become one of the highest performing Title I schools in Nevada, receiving the 2024 Elementary and Secondary Education Act (ESEA) Distinguished Schools award. Florence Drake Elementary was also recognized as a 2022 National Blue Ribbon School.

    Following reports that Elon Musk and the “Department of Government Efficiency” plan to eliminate or dramatically cut the Department of Education, students, teachers, and parents at Florence Drake Elementary School and at schools across Nevada face uncertainty. Dissolving the Department of Education would have devastating impacts on public schools, including the potential disruption of the Title I funds that support low-income students. Principal Shipman’s school relies on Title I to pay teachers, keep kids safe, fund classroom equipment, and support special education.

    “I’m the product of Nevada public schools – from kindergarten all the way to my time at UNR – and I know the difference a good education can make in a child’s life,” said Senator Cortez Masto. “As schools across the country face the potential cuts to critical federal funding, I won’t abandon our educators. I’m proud to work with Nevada leaders like Principal Shipman to ensure our students have everything they need to thrive.”

    “I am incredibly proud of the continued success of the students and staff members at Florence Drake Elementary School,” said Jason Shipman, Principal at Florence Drake Elementary School. “We are a Title I school, and the federal funding we receive provides crucial resources and supports to children living in poverty. I can relate to the struggles of our students, as my own family lived in poverty when I was in elementary school. I encountered barriers to my education, as Title I funding had not been established yet, and I saw how those barriers adversely affected many of my friends whose educations and lives were negatively impacted by their lack of access to education. Title I funding is the federal government’s promise to help reduce these barriers so all students have the right to access a free and appropriate education, and I am proud to play a part in helping each of our students find success in our school.”

    Senator Cortez Masto has delivered critical support to students and schools across Nevada. Cortez Masto’s legislation to increase the number of mental health professionals in schools was included in the bipartisan Safer Communities Act, which was signed into law. In addition, the Bipartisan Infrastructure Law included three of Cortez Masto’s bipartisan bills to boost transportation safety for students, expand internet access for both rural and urban schools, and update old school infrastructure. The Senator has also championed bipartisan Reaching English Learners Act to create a competitive grant program to fund partnerships between institutions of higher education and high-need school districts to provide training for new English-language teachers.

    MIL OSI USA News

  • MIL-OSI Global: Foreign powers have long profited from Ukrainian resources – Trump’s minerals grab is no exception

    Source: The Conversation – UK – By Victoria Donovan, Professor of Ukrainian and East European Studies, University of St Andrews

    Donald Trump and Ukrainian president, Volodymyr Zelensky, meet outside the Élysée Palace in Paris. Frederic Legrand – COMEO / Shutterstock

    Donald Trump’s grab for Ukraine’s minerals, which the US president is demanding as compensation for his country’s wartime assistance to Kyiv, might seem like a new low in a week of US-Ukraine relations lows.

    The latest draft of Trump’s “minerals deal” would grant the US substantial control of a new fund that would invest in Ukrainian reconstruction. The fund would receive 50% of the profits from the future monetisation of government-owned Ukrainian natural resources such as lithium and titanium, as well as coal, gas, oil and uranium.

    This deal, despite offering no guarantee of continued US military support, is a slight improvement on Trump’s first offering. That bid would have imposed financial conditions on Ukraine harsher than those forced on Germany after the first world war.

    However, the deal will still require future generations of Ukrainians to shoulder the cost of a war for which they bear no responsibility. Commentators, including British foreign minister David Lammy, have noted that it would be more just to seize frozen Russian assets and use them to cover the cost of repairing the damage Russia has wreaked across the country.

    But, while many in the west have balked at Trump’s barefaced extractivism, his actions are entirely in line with the way western capitalists have approached Ukraine and its resources since the 19th century.

    The Donbas region of Ukraine is a major coal mining and industrial area.
    deniks315 / Shutterstock

    Ukraine’s east, referred to as Donbas, is often thought to have been industrialised in the 1930s, when Joseph Stalin was leading the Soviet Union. At this time, Donbas was marketed to the world as a symbol of proletarian superabundance. It was a place where miners and steelworkers exceeded their production quotas by 30 or 40 times.

    But the development of industrial extraction in eastern Ukraine dates back much earlier and was powered, in part, by European capital and technology.

    In the mid-19th century, when this part of Ukraine was controlled by the Russian empire, the Russian tsars opened the country’s borders to foreign capital investment in the hopes of accelerating its industrialisation drive. A series of fiscal measures were introduced that made it more attractive to foreigners to invest in the empire’s emerging industrial markets.

    This encouraged a wave of economic migration from western Europe to all regions of the multinational state. Foreign capitalists often partnered with Russian business elites based in Saint Petersburg and other major cities and set about generating huge amounts of profit from the extraction of the empire’s valuable resources.

    Donbas, with its wealth of minerals, was a region of particular interest for foreign capitalists. French, Belgian, German, Dutch and British industrialists all relocated to the region in the second half of the 19th century hoping to make their fortunes by excavating the region’s salt, chalk, gypsum, and coal. In fact, there was so much Belgian capital circulating at one point that Donbas became known as “the tenth Belgian province”.

    Despite the paternalism of some foreign managers, the extraction of Ukraine’s minerals did little to improve the life of local communities. Rather, it contributed to the displacement of indigenous people and caused massive environmental and ecological damage.

    Urban planning often replicated the segregated conditions of European colonies in Africa and India. Foreign settlers lived apart from local workers, in privileged housing located in better provisioned parts of town downwind of the toxic fumes of the blast furnaces and the chimney stacks.

    In the settlement of Hughesovka (now known as Donetsk), which was named after the Welsh industrialist John Hughes, Welsh settlers attempted to reconstruct the trappings of British life on the Ukrainian steppe.

    They built tennis courts and an Anglican church, arranged tea parties, and even had an amateur dramatics society. Meanwhile, the local workforce lived in abject poverty, often accommodated in barracks or mud dugouts.

    In these dismal conditions, infectious disease and dissatisfaction were widespread. There are several reports of riots following large-scale outbreaks of cholera and local hospitals were reportedly overflowing.

    Before Russia’s full-scale invasion of Ukraine in 2022, this period of European capitalist exploitation was drawing considerable interest from researchers.

    The “European” industrial heritage of Donbas was being used to tell different stories about the region and to highlight its complex, multicultural history. This heritage was seen to hold potential as a counter-narrative to the toxic “Russian world” propaganda emanating from the occupied territories, which maintains that Ukraine is an integral part of Russia’s historic sphere of cultural influence.

    But there is a danger in being too romantic about this chapter in history. Foreign capitalist investment in the extraction of Ukrainian minerals was not a classic example of settler colonialism. However, it bore many similarities to western European colonial practices in other parts of the world at this time.

    What this history reminds us is that Ukraine has long been located at the intersection of empires. And these empires have often collaborated to plunder the country’s resources, offering little or nothing in return.

    We can see this kind of predatory collaboration of imperial and neo-imperial regimes once again taking shape. Russia’s leader, Vladimir Putin, is trying to tempt Trump away from a deal with Ukraine with promises of access to Ukraine’s rare earth minerals in the occupied territories.

    We must continue to gather and protest, as many of us did on the three-year anniversary of the full-scale invasion this week, to resist such politics of resourcification.

    Victoria Donovan’s research has received funding from the Arts and Humanities Research Council, 2019-2023.

    ref. Foreign powers have long profited from Ukrainian resources – Trump’s minerals grab is no exception – https://theconversation.com/foreign-powers-have-long-profited-from-ukrainian-resources-trumps-minerals-grab-is-no-exception-250811

    MIL OSI – Global Reports

  • MIL-OSI Russia: Tatyana Golikova presented the national project “Family”

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Deputy Prime Minister Tatyana Golikova presented the national project “Family” at an extended meeting of the State Duma Committee on Family Protection, Fatherhood, Motherhood and Childhood.

    Tatyana Golikova presented the national project “Family”

    Previous news Next news

    Deputy Prime Minister Tatyana Golikova, Minister of Labor and Social Protection Anton Kotyakov, Minister of Health Mikhail Murashko, Minister of Culture Olga Lyubimova, Deputy Minister of Science and Higher Education Olga Petrova and Deputy Minister of Education Andrei Nikolaev spoke about the prerequisites for the formation, main goals and directions of the new national project.

    As Tatyana Golikova noted, the national project “Family” is comprehensive and was formed taking into account the instructions of the President of Russia and his decree No. 309. It is aimed at achieving three national development goals:

    • preserving the population, strengthening health and improving well-being of people, supporting families;

    • realizing the potential of each person, developing his talents, raising a patriotic and socially responsible individual;

    • comfortable and safe living environment.

    “When developing the national project, we focused on the family in the broadest sense of the word. Therefore, the national project included measures aimed at both stimulating new births and supporting various types of families, including young, large families, and older generations of families,” the Deputy Prime Minister emphasized.

    She noted that the national project “Family” replaces the national projects “Demography”, “Culture” and some activities of the national project “Healthcare” and takes into account all the experience of positive decisions accumulated in recent years.

    The national project consists of five federal projects. The Ministry of Labor has been appointed as the head of three projects: FP “Family Support”, “Large Families”, “Older Generation”. FP “Maternity and Childhood Protection” is assigned to the Ministry of Health, FP “Family Values and Cultural Infrastructure” to the Ministry of Culture.

    17.9 trillion rubles have been allocated for the implementation of the national project over six years, including 7.8 trillion rubles over the next three years.

    “The President of the country has set the task of ensuring sustainable growth in the birth rate, increasing the total fertility rate to 1.6 by 2030 and to 1.8 by 2036. The target value can be achieved provided that not only the social sphere, but also all areas of our life – the economy, development of housing and rural infrastructure, improvement of cities and towns – will work towards this goal,” said Tatyana Golikova.

    According to her, preliminary results for 2024 show that, compared to 2023, the total fertility rate, according to Rosstat’s operational data, has remained almost unchanged, decreasing by 0.7% to 1.4.

    At the same time, 18 regions have seen an increase in the birth rate. It is important that among them are regions of Central Russia, the North-West from the cluster “Demographic Winter” – these are Smolensk, Oryol, Ryazan, Leningrad and Kaliningrad regions.

    “The growth dynamics of births of third and subsequent children has been maintained – by 1.1% compared to the previous year. At the same time, Russia, like many developed countries, is characterized by demographic challenges and new trends in the development of the institution of the family. Based on these challenges, we have formed seven key areas,” the Deputy Prime Minister said.

    The first direction is the implementation of the “plus one child in every family” approach. The target is large families.

    The second direction is to level out the high regional differentiation in birth rates.

    According to preliminary results for 2024, in 38 regions, excluding new regions, the birth rate is higher than the Russian average, and in two – the Chechen Republic and Tuva – it exceeds the level of simple reproduction – 2.1. In general, the differentiation between regions has not changed – the indicator differs by three times).

    In such conditions, federal umbrella measures with uniform conditions for the entire country must be supplemented in all subjects with regional support measures linked to local specifics and targeted work with individual groups of regions, supporting them from the federal level. It is important that the growth of the total fertility rate in the territory, support for large families, and the reduction of their poverty become a personal project of each governor.

    The third direction is the creation of conditions for the harmonious combination of professional development with the birth and upbringing of children.

    “To do this, we are fine-tuning both state and corporate policies. Together with the Russian Union of Industrialists and Entrepreneurs and the Federation of Independent Trade Unions of Russia, we have developed recommendations for the implementation of corporate social policy. Informally, we call them the “corporate demographic standard”. At the end of the year, it was adopted by the Russian Tripartite Commission,” noted Tatyana Golikova. “As you remember, at the final meeting of the State Council, the President supported certain additional measures, including tax incentives for employers, so that there would be an opportunity to support working women and working families. And of course, an important topic here is support for the older generation.”

    The fourth direction is increasing the birth rate in rural areas.

    The village has traditionally been the basis for population growth in the country, large families. Despite the decrease in the total fertility rate in the village by a third in the last 10 years, the fertility rate in the village as a whole is currently maintained at the level that must be achieved throughout the country by 2030. It is important to maintain it at this level and, if possible, increase it.

    “Last year, a pilot project was launched in three regions – Novgorod, Tambov and Penza regions, which is aimed at developing infrastructure. And although not much time has passed, we are already seeing the first positive results. Over the three quarters of 2024, compared to the same period in 2023, the number of women registered for pregnancy at antenatal clinics in the pilot regions increased by 15% on average, and the number of women who continued their pregnancy increased by 22% on average,” the Deputy Prime Minister said.

    “Another area is improving the well-being of families so that they can make decisions about having another child. These are, of course, new targeted support measures. And here, both within the framework of the national project and within the framework of individual state programs and general policy, we will continue measures aimed at increasing the minimum wage, increasing citizens’ labor incomes, and, of course, keeping inflation low,” Tatyana Golikova emphasized.

    The sixth direction is strengthening reproductive health and developing children’s medicine. It is planned to further increase additional investments in infrastructure and technologies in healthcare.

    The seventh direction is strengthening the values of the family institution. All events related to the national project “Culture” implemented in previous years are concentrated here. These include cultural centers, cinemas in rural areas, modernized theaters and museums, model libraries, renovated and equipped children’s art schools, and new cinemas.

    “There are no trifles in issues such as birth rate. This really should become the business of every governor, so that there are more of us, Russians,” concluded Tatyana Golikova.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI USA: Scott Highlights Need to Confirm Trump Administration Nominees for Top Economic, Financial Regulator Posts

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott

    WASHINGTON — At yesterday’s nominations hearing before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Senator Tim Scott (R-S.C.) highlighted the qualifications of President Trump’s nominees to top economic policy and financial regulator posts: 

    • Dr. Stephen Miran, nominee to be Chairman of the Council of Economic Advisors, Executive Office of the President
    • Mr. Jeffrey Kessler, nominee to be Under Secretary of Commerce for Industry and Security, Department of Commerce
    • Mr. William Pulte, nominee to be Director, Federal Housing Finance Agency
    • Mr. Jonathan McKernan, nominee to be Director, Bureau of Consumer Financial Protection

    Senator Scott emphasized the importance of quickly advancing President Trump’s nominees to rebuild the economy, restore confidence in the financial system, and ensure American families have the tools to thrive.

    Senator Scott’s opening remarks as delivered:

    I want to take a second to congratulate each of our nominees before us today and thank you for your willingness to serve our country.

    If confirmed, you will help put our nation back on the path to prosperity. 

    As we reflect on the past four years, we must acknowledge the severe damage created by the Biden administration’s reckless spending.

    It’s hard for me to forget, as a kid and my brother growing up in poverty, single parent household, watching my mother trying to make every single dollar count. She did the best she could with what she had. 

    Inflation is especially cruel to the communities like the one I grew up in.

    No one should have to make a choice between putting food on the table and keeping the lights on.

    During Joe Biden’s time in office, overall prices rose by over 20 percent, energy by 34 percent, transportation 31 percent, groceries 22 percent.

    I refuse to accept that the last four years will be the next four years.

    Unlike his predecessor, President Trump understands what it takes to create a blue-collar comeback. And I’m excited about that.

    Each of the nominees before us today will play a critical role in rebuilding the economy, restoring confidence in our financial system, and ensuring that American families can thrive once again.  

    The Council of Economic Advisers serves as the White House’s chief advisors, think tank so to speak, providing the President with data-driven guidance on policy decisions. 

    Dr. Stephen Miran is an accomplished economist with a strong record of advocating for fiscal responsibility and pro-growth policies.

    He will play an instrumental role in helping President Trump rebuild America’s economy. 

    Turning to Mr. Kessler, the Department of Commerce’s mission is to create an environment for economic growth and opportunity for all communities.

    Unfortunately, under President Biden, we saw China rapidly advance in developing advanced technologies that support its military capabilities, distort global markets, and erode competitiveness of U.S. companies.  

    Mr. Kessler’s experience in trade and national security policy will be critical in strengthening our supply chains and ensuring the U.S. leads in the next generation technologies. 

    Now, let’s talk about housing. Under President Biden, the dream of homeownership became unaffordable for millions and millions of Americans. The FHFA plays a crucial role in overseeing Fannie Mae, Freddie Mac, and the Federal Home Loan Bank – entities that significantly influence the U.S. housing finance market.

    These institutions not only impact mortgage rates and housing affordability, but also provide essential liquidity to the mortgage market, ensuring a stable supply of funds for home loans. 

    William Pulte is a businessman with a deep understanding of the housing market. His insight and passion for people will serve him well in leading the FHFA’s efforts to address our broken housing system.

    And finally, the CFPB was allegedly created to protect American consumers, but under the Biden administration, it overstepped its authority, burdened businesses with excessive politically driven regulation, and drove up costs for consumers.

    The CFPB has become a tool for progressive overreach, making it harder for small banks and lenders to serve their communities.

    Jonathan McKernan has the expertise needed to rein in the CFPB’s excesses and ensure that the agency works for consumers – not against them.

    Today’s hearing is not just about these four nominees – it is about the future of our economy and the direction of our country.

    We have an opportunity to undo the failures of the past four years and usher in a golden era of American prosperity.

    That begins by confirming these well-qualified individuals who will stand up for the American families, American workers, and for small businesses.

    MIL OSI USA News

  • MIL-OSI Europe: Global Gateway: Partnership between EBID and EIB to promote climate action and environmental sustainability projects in the ECOWAS region

    Source: European Investment Bank

    EIB

    The ECOWAS Bank for Investment and Development (EBID), the European Investment Bank (EIB), with the support of the European Union (EU), today announce a €100 million financial partnership to support climate action and environmental sustainability projects in the ECOWAS region.

    A project with a considerable impact on populations

    The EUR 100 million credit line signed under a EUR 150 million envelope is the EIB’s first operation with the EBID. It supports economic development, climate action and environmental sustainability in the ECOWAS region, which fills the financing gap in these areas and contributes to sustainable livelihoods and poverty reduction.

    This facility affirms joint EBID and EIB targeted support for sustainable investments across the ECOWAS region, with particular support for sectors contributing to climate mitigation. The projects which will be financed by this operation target particularly renewable energy including small and medium-sized photovoltaic projects, sustainable agriculture and water treatment.

    A project with a strategic vision

    This project – targeting total investments of at least EUR 300 million – is in line with the strategic priorities of the ECOWAS region and is part of the European Union strategy in Africa under the Africa-European Union Green Energy Initiative as well as the Global Gateway strategy, a model for how Europe can build more resilient connections with the world. It also responds to the ECOWAS Vision 2050 ambitions linked to the environment, economic growth, private sector development and regional integration as well as the ECOWAS Regional Climate Strategy and the Action Plan for 2022-2030.It contributes to various Sustainable Development Goals (SDGs), such as sustainable agriculture, health and quality education, clean water and sanitation, affordable and clean energy.

    “We appreciate this line of credit as an initiative of the European Investment Bank to help ECOWAS countries increase their growth and sustainable development,” said EBID Vice President Risk and Control, Dr. Mory Soumahoro. “This partnership demonstrates EBID’s commitment to supporting regional member countries’ access to sustainable sources of finance.”

    “I am very delighted to sign this first operation with the EBID to support economic development, climate action and environmental sustainability in the ECOWAS region. It will help to bridge the financial gap in this region while contributing to reduce poverty and ameliorate daily lives. “ said EIB Vice-President Ambroise Fayolle. He added: “By contributing financially to this project, the EIB demonstrates its commitment to regional integration and developed infrastructure for the benefit of local populations.  Through EIB Global, our branch dedicated to development, we aim to support the EU’s Global Gateway initiative and key sectors in the region such as innovation, digital economy, renewable energy, water, agriculture and transport.”

    “More than half a billion people in Africa still lack access to electricity. Our long-standing goal is to change that. The partnership between the ECOWAS Bank for Investment and Development (EBID) and the European Investment Bank (EIB) is a clear demonstration of our commitment to supporting sustainable development and climate action in Africa. By mobilising €300 million for projects that promote clean energy, we are empowering people in the ECOWAS region to build a greener and more prosperous future.” – Jozef Síkela, European Commissioner for International Partnerships

    The EIB loan will also be accompanied by technical assistance program of the EIB with climate action focused training and capacity building This is closely aligned with the EIB and EBID initiatives supporting sustainable development.

    Background information:

    EIB Global

    The European Investment Bank (EIB), whose shareholders are the Member States of the European Union (EU), is the EU’s long-term financing institution. It finances the implementation of investments which contribute to the major objectives of the EU.

    BEI Global is the specialist arm of the EIB Group dedicated to developing the impact of international partnerships and development finance, and a key partner of the Global Gateway strategy. It aims to support 100 billion euros of investment by the end of 2027 – around a third of the overall target of this EU strategy. Within Team Europe, EIB Global promotes strong and targeted partnerships, alongside other development finance institutions and civil society. BEI World brings the BEI Group closer to populations, businesses and institutions through its offices around the world.

    High-quality, up-to-date photos of our headquarters for media use are available here.

    About EBID

    ECOWAS Bank for Investment and Development (EBID) is the development finance institution of the Economic Community of West African States (ECOWAS) comprising fifteen (15) Member States namely, Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Based in Lomé, Togolese Republic, the Bank is committed to financing developmental projects and programmes covering diverse initiatives from infrastructure and basic amenities, rural development and environment, industry, and social services sectors, through its private and public sector windows. EBID intervenes through long, medium, and short-term loans, equity participation, lines of credit, refinancing, financial engineering operations, and related services. www.bidc-ebid.org

    MIL OSI Europe News

  • MIL-OSI Economics: Costa Rica: Staff Concluding Statement of the 2025 Article IV Consultation Mission

    Source: International Monetary Fund

    February 28, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    San José: An International Monetary Fund (IMF) staff team, led by Mr. Ding Ding, held the 2025 Article IV consultation with the Costa Rican authorities during February 18-28. At the conclusion of the discussions, Mr. Ding issued the following statement:

    Costa Rica is one of the fastest-growing economies in the Western Hemisphere, achieving notable economic success in recent years. GDP growth has averaged above 5 percent since 2021, outpacing regional peers and contributing to lower poverty and unemployment. Over the same period, public debt fell by an impressive 8 percentage points of GDP to below 60 percent of GDP. These successes are fruits of good macroeconomic policies, wide-ranging reforms in the context of becoming a member of the OECD, two successfully completed IMF-supported programs, and a strategic focus on exports and economic diversification. Growth is projected to remain strong at about 4 percent for 2025.

    Inflation is showing encouraging signs of returning towards the inflation target, following decisive monetary policy easing by the BCCR. Having been near zero since mid-2024, headline inflation has begun to rise and is projected to reach the BCCR’s tolerance band in mid-2025 and the 3 percent target within a year. However, core inflation remains subdued and there are downside risks, primarily stemming from low inflation expectations becoming entrenched below the target. Upside risks could arise from possible commodity price increases and/or supply-side disruptions.

    The BCCR’s forward-looking data-dependent approach has proven effective and its inflation targeting regime is working well. At the current monetary policy rate, inflation is expected to be 3 percent by 2026Q1. If the convergence of inflation to the 3 percent target weakens in the coming months, there is room for the BCCR to cut the policy rate further. Credit growth has been strong. If there are signs of excess credit growth especially associated with FX loans, macroprudential measures should be tightened to mitigate potential risks to financial stability.

    It is important to further strengthen the BCCR’s autonomy, governance, and operational framework. This would be achieved by approving legislative proposals to improve BCCR governance, transparency, and accountability, and institutionalize the central bank’s de facto autonomy.

    The exchange rate should be allowed to adjust more flexibly to market conditions. The BCCR accumulated US$ 920 million in international reserves during 2024, and reserve coverage is now comfortable by multiple metrics. A further accumulation of international reserves is unwarranted and would impose unnecessary costs over time. Moreover, frequent foreign exchange intervention can weaken monetary policy transmission and hinder foreign exchange market development. Concerted efforts including legal reforms are needed to deepen FX markets and strengthen the non-financial public sector’s ability to manage currency risks, reducing its reliance on the BCCR as an intermediary for FX transactions. Alongside the planned reform to restructure existing pension funds into generational funds, regulatory limits on foreign investments by local pension funds need to be updated. Adjustments to these limits should be phased in and supported by FX market development.

    There is scope to further capitalize on the significant progress on financial sector oversight. Indicators of financial soundness remain comfortable, notwithstanding the resolution of two small non-bank financial institutions last year. These episodes highlighted the importance of a strong supervisory and resolution framework. The Legislative Assembly should, therefore, pass the proposed amendments to the bank resolution and deposit insurance law that would further strengthen supervisory and resolution powers and enhance the crisis management framework.

    Although public debt fell to below 60 percent of GDP in 2024, the task of rebuilding fiscal space is not yet complete. The debt ratio fell in part due to some drawdown of cash balances and transfers of cash balances by decentralized and autonomous entities to the Treasury Single Account (which lowered financing needs). However, the primary surplus fell in 2024 due to temporary factors and the regrettable reductions of the vehicle property tax (marchamo) and corporate tax base. An unwinding of temporary factors is expected to help the primary balance rise to around 1½ percent of GDP this year. A higher primary balance is essential to bring debt down further, reduce interest costs, and create room for additional spending. While spending should be less than the ceiling permitted by the fiscal rule, the higher primary balance should still allow for some increases in priority areas like infrastructure, child and adult care (which will help boost female labor market participation), and investments in skills training for vulnerable groups (which will help reduce dependency on social assistance).

    Tax reforms could improve the fairness and efficiency of the system while raising resources for both debt reduction and somewhat higher spending. However, revenue-increasing bills presented over the last five years that would also have increased progressivity and bolstered dynamism have not been viewed favorably by legislators. These have included proposals to reduce VAT and income tax exemptions (such as on the salario escolar and for lottery winnings) and to bring income from self-employment, salaries, and pensions under a single threshold while raising the top marginal rate. These bills warrant renewed consideration as higher revenues would allow faster increases in social and capital spending. At the same time, we are worried that various Legislative Assembly bills are reducing revenues.

    Full implementation of the public employment bill and debt management reforms would improve spending quality and reduce interest costs. Legislative proposals aimed at amending the public employment law could significantly undermine progress in containing the public-sector wage bill. Institutions that have not yet fully implemented the public employment law should do so without further delay to ensure its benefits are broadened to beyond the central government. Legal reforms to permit access to international sovereign debt markets and grant the executive branch more flexibility in issuing external debt would also be valuable. There have been welcome improvements in the quality of government finance statistics, which are expected to be used in the setting of fiscal policies.

    A comprehensive solution is needed to resolve the dispute between Caja Costarricense de Seguro Social (CCSS) and the Ministry of Finance (MoF) over social security claims. The outstanding claim is due to an unfunded expansion of beneficiaries and CCSS’s unilateral decisions to raise the government’s contribution. Addressing this issue requires urgent improvements in the CCSS’s registry systems so as to allow for an accurate tracking of outlays and beneficiaries. Moreover, the CCSS and the MoF should clarify the scope of healthcare services and pension benefits that are currently covered by the budget while identifying additional funding sources as needed to ensure that the healthcare and pension systems are actuarially sound. Strengthening CCSS governance will be essential to ensure that any future changes to the social security system include a thorough assessment of the fiscal and labor market implications of such changes. There is also scope to enhance the accountability of the CCSS, the transparency of their operations, and the simplicity of the system, in line with international best practice. These reforms will be critical to safeguard the long-run sustainability of the social security system as the population ages.

    Advancing supply-side reforms can help sustain Costa Rica’s impressive economic performance by addressing key bottlenecks to growth. To tackle skill shortages, particularly in high-tech industries, it is essential to accelerate efforts to reduce skills mismatches, align school curricula with industry needs, promote dual education (including apprenticeship programs) and bilingual education, and improve adult secondary education graduation rates. The recent reduction of the minimum contribution base for part-time workers has helped encourage formal employment but there is scope to lower the high tax wedge on labor, substituting for alternative revenue sources. Enhancing infrastructure quality and maintenance would further strengthen potential growth. In this regard, integrating climate considerations into public investment decisions is already making infrastructure more resilient against natural disasters. Given the substantial additional funding needed to upgrade infrastructure, approving and implementing the new legislation on public private partnerships is critical. Additionally, ongoing reforms to facilitate private-sector electricity provision, including diversification into non-hydroelectric renewables, will make electricity more affordable and less vulnerable to fluctuations in rainfall.

    The IMF team is grateful to the Costa Rican authorities and other counterparts for the productive discussions and hospitality during the mission.

    Costa Rica: Selected Economic and Financial Indicators

     

     

     

     

     

     

    Projections

    2022

    2023

    2024

    2025

    2026

    2027

    Output and Prices

    (Annual percentage change)

    Real GDP

    4.6

    5.1

    4.3

    3.9

    3.8

    3.6

    GDP deflator

    6.3

    -0.1

    0.0

    2.9

    3.2

    3.2

    Consumer prices (period average)

    8.3

    0.5

    -0.4

    2.0

    3.0

    3.0

    Savings and Investment

    (In percent of GDP)

    Gross domestic saving

    14.4

    13.8

    14.3

    14.1

    14.1

    14.3

    Gross domestic investment

    17.7

    15.3

    15.7

    15.7

    15.7

    15.8

    External Sector

    Current account balance

    -3.3

    -1.4

    -1.4

    -1.6

    -1.6

    -1.5

    Trade balance

    -6.7

    -3.7

    -2.7

    -3.0

    -2.8

    -3.1

    Financial account balance

    -2.5

    -0.7

    -0.7

    -1.6

    -1.5

    -1.5

    Foreign direct investment, net

    -4.4

    -4.3

    -4.0

    -5.3

    -5.5

    -5.4

    Gross international reserves (millions of U.S. dollars)

    8,724

    13,261

    14,181

    15,056

    16,077

    16,827

    External debt

    50.7

    43.3

    38.6

    35.5

    33.3

    30.9

    Public Finances

    Central government primary balance

    2.1

    1.6

    1.1

    1.5

    1.6

    1.7

    Central government overall balance

    -2.8

    -3.2

    -3.8

    -3.0

    -2.7

    -2.3

    Central government debt

    63.0

    61.1

    59.8

    59.4

    58.4

    57.1

    Money and Credit

    Credit to the private sector (percent change)

    3.3

    1.9

    6.4

    7.5

    7.0

    7.0

    Monetary base 1/

    8.0

    7.9

    8.0

    8.0

    8.0

    8.0

    Broad money

    47.5

    47.4

    49.4

    50.1

    50.3

    50.9

    Memorandum Items

    Nominal GDP (billions of colones) 2/

    44,810

    47,059

    49,116

    52,531

    56,237

    60,132

    Output gap (as percent of potential GDP)

    -0.3

    1.0

    0.6

    0.5

    0.4

    0.2

    GDP per capita (US$)

    13,240

    16,390

    17,901

    19,013

    20,009

    21,045

    Unemployment rate

    11.7

    7.3

    6.9

    8.0

    8.5

    9.0

    Sources: Central Bank of Costa Rica, and Fund staff estimates.

    1/ Includes currency issued and required reserves.

    2/ National account data reflect the revision of the benchmark year to 2017 for the chained volume measures, published in January 2021.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    MIL OSI Economics

  • MIL-OSI Russia: Costa Rica: Staff Concluding Statement of the 2025 Article IV Consultation Mission

    Source: IMF – News in Russian

    February 28, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    San José: An International Monetary Fund (IMF) staff team, led by Mr. Ding Ding, held the 2025 Article IV consultation with the Costa Rican authorities during February 18-28. At the conclusion of the discussions, Mr. Ding issued the following statement:

    Costa Rica is one of the fastest-growing economies in the Western Hemisphere, achieving notable economic success in recent years. GDP growth has averaged above 5 percent since 2021, outpacing regional peers and contributing to lower poverty and unemployment. Over the same period, public debt fell by an impressive 8 percentage points of GDP to below 60 percent of GDP. These successes are fruits of good macroeconomic policies, wide-ranging reforms in the context of becoming a member of the OECD, two successfully completed IMF-supported programs, and a strategic focus on exports and economic diversification. Growth is projected to remain strong at about 4 percent for 2025.

    Inflation is showing encouraging signs of returning towards the inflation target, following decisive monetary policy easing by the BCCR. Having been near zero since mid-2024, headline inflation has begun to rise and is projected to reach the BCCR’s tolerance band in mid-2025 and the 3 percent target within a year. However, core inflation remains subdued and there are downside risks, primarily stemming from low inflation expectations becoming entrenched below the target. Upside risks could arise from possible commodity price increases and/or supply-side disruptions.

    The BCCR’s forward-looking data-dependent approach has proven effective and its inflation targeting regime is working well. At the current monetary policy rate, inflation is expected to be 3 percent by 2026Q1. If the convergence of inflation to the 3 percent target weakens in the coming months, there is room for the BCCR to cut the policy rate further. Credit growth has been strong. If there are signs of excess credit growth especially associated with FX loans, macroprudential measures should be tightened to mitigate potential risks to financial stability.

    It is important to further strengthen the BCCR’s autonomy, governance, and operational framework. This would be achieved by approving legislative proposals to improve BCCR governance, transparency, and accountability, and institutionalize the central bank’s de facto autonomy.

    The exchange rate should be allowed to adjust more flexibly to market conditions. The BCCR accumulated US$ 920 million in international reserves during 2024, and reserve coverage is now comfortable by multiple metrics. A further accumulation of international reserves is unwarranted and would impose unnecessary costs over time. Moreover, frequent foreign exchange intervention can weaken monetary policy transmission and hinder foreign exchange market development. Concerted efforts including legal reforms are needed to deepen FX markets and strengthen the non-financial public sector’s ability to manage currency risks, reducing its reliance on the BCCR as an intermediary for FX transactions. Alongside the planned reform to restructure existing pension funds into generational funds, regulatory limits on foreign investments by local pension funds need to be updated. Adjustments to these limits should be phased in and supported by FX market development.

    There is scope to further capitalize on the significant progress on financial sector oversight. Indicators of financial soundness remain comfortable, notwithstanding the resolution of two small non-bank financial institutions last year. These episodes highlighted the importance of a strong supervisory and resolution framework. The Legislative Assembly should, therefore, pass the proposed amendments to the bank resolution and deposit insurance law that would further strengthen supervisory and resolution powers and enhance the crisis management framework.

    Although public debt fell to below 60 percent of GDP in 2024, the task of rebuilding fiscal space is not yet complete. The debt ratio fell in part due to some drawdown of cash balances and transfers of cash balances by decentralized and autonomous entities to the Treasury Single Account (which lowered financing needs). However, the primary surplus fell in 2024 due to temporary factors and the regrettable reductions of the vehicle property tax (marchamo) and corporate tax base. An unwinding of temporary factors is expected to help the primary balance rise to around 1½ percent of GDP this year. A higher primary balance is essential to bring debt down further, reduce interest costs, and create room for additional spending. While spending should be less than the ceiling permitted by the fiscal rule, the higher primary balance should still allow for some increases in priority areas like infrastructure, child and adult care (which will help boost female labor market participation), and investments in skills training for vulnerable groups (which will help reduce dependency on social assistance).

    Tax reforms could improve the fairness and efficiency of the system while raising resources for both debt reduction and somewhat higher spending. However, revenue-increasing bills presented over the last five years that would also have increased progressivity and bolstered dynamism have not been viewed favorably by legislators. These have included proposals to reduce VAT and income tax exemptions (such as on the salario escolar and for lottery winnings) and to bring income from self-employment, salaries, and pensions under a single threshold while raising the top marginal rate. These bills warrant renewed consideration as higher revenues would allow faster increases in social and capital spending. At the same time, we are worried that various Legislative Assembly bills are reducing revenues.

    Full implementation of the public employment bill and debt management reforms would improve spending quality and reduce interest costs. Legislative proposals aimed at amending the public employment law could significantly undermine progress in containing the public-sector wage bill. Institutions that have not yet fully implemented the public employment law should do so without further delay to ensure its benefits are broadened to beyond the central government. Legal reforms to permit access to international sovereign debt markets and grant the executive branch more flexibility in issuing external debt would also be valuable. There have been welcome improvements in the quality of government finance statistics, which are expected to be used in the setting of fiscal policies.

    A comprehensive solution is needed to resolve the dispute between Caja Costarricense de Seguro Social (CCSS) and the Ministry of Finance (MoF) over social security claims. The outstanding claim is due to an unfunded expansion of beneficiaries and CCSS’s unilateral decisions to raise the government’s contribution. Addressing this issue requires urgent improvements in the CCSS’s registry systems so as to allow for an accurate tracking of outlays and beneficiaries. Moreover, the CCSS and the MoF should clarify the scope of healthcare services and pension benefits that are currently covered by the budget while identifying additional funding sources as needed to ensure that the healthcare and pension systems are actuarially sound. Strengthening CCSS governance will be essential to ensure that any future changes to the social security system include a thorough assessment of the fiscal and labor market implications of such changes. There is also scope to enhance the accountability of the CCSS, the transparency of their operations, and the simplicity of the system, in line with international best practice. These reforms will be critical to safeguard the long-run sustainability of the social security system as the population ages.

    Advancing supply-side reforms can help sustain Costa Rica’s impressive economic performance by addressing key bottlenecks to growth. To tackle skill shortages, particularly in high-tech industries, it is essential to accelerate efforts to reduce skills mismatches, align school curricula with industry needs, promote dual education (including apprenticeship programs) and bilingual education, and improve adult secondary education graduation rates. The recent reduction of the minimum contribution base for part-time workers has helped encourage formal employment but there is scope to lower the high tax wedge on labor, substituting for alternative revenue sources. Enhancing infrastructure quality and maintenance would further strengthen potential growth. In this regard, integrating climate considerations into public investment decisions is already making infrastructure more resilient against natural disasters. Given the substantial additional funding needed to upgrade infrastructure, approving and implementing the new legislation on public private partnerships is critical. Additionally, ongoing reforms to facilitate private-sector electricity provision, including diversification into non-hydroelectric renewables, will make electricity more affordable and less vulnerable to fluctuations in rainfall.

    The IMF team is grateful to the Costa Rican authorities and other counterparts for the productive discussions and hospitality during the mission.

    Costa Rica: Selected Economic and Financial Indicators

     

     

     

     

     

     

    Projections

    2022

    2023

    2024

    2025

    2026

    2027

    Output and Prices

    (Annual percentage change)

    Real GDP

    4.6

    5.1

    4.3

    3.9

    3.8

    3.6

    GDP deflator

    6.3

    -0.1

    0.0

    2.9

    3.2

    3.2

    Consumer prices (period average)

    8.3

    0.5

    -0.4

    2.0

    3.0

    3.0

    Savings and Investment

    (In percent of GDP)

    Gross domestic saving

    14.4

    13.8

    14.3

    14.1

    14.1

    14.3

    Gross domestic investment

    17.7

    15.3

    15.7

    15.7

    15.7

    15.8

    External Sector

    Current account balance

    -3.3

    -1.4

    -1.4

    -1.6

    -1.6

    -1.5

    Trade balance

    -6.7

    -3.7

    -2.7

    -3.0

    -2.8

    -3.1

    Financial account balance

    -2.5

    -0.7

    -0.7

    -1.6

    -1.5

    -1.5

    Foreign direct investment, net

    -4.4

    -4.3

    -4.0

    -5.3

    -5.5

    -5.4

    Gross international reserves (millions of U.S. dollars)

    8,724

    13,261

    14,181

    15,056

    16,077

    16,827

    External debt

    50.7

    43.3

    38.6

    35.5

    33.3

    30.9

    Public Finances

    Central government primary balance

    2.1

    1.6

    1.1

    1.5

    1.6

    1.7

    Central government overall balance

    -2.8

    -3.2

    -3.8

    -3.0

    -2.7

    -2.3

    Central government debt

    63.0

    61.1

    59.8

    59.4

    58.4

    57.1

    Money and Credit

    Credit to the private sector (percent change)

    3.3

    1.9

    6.4

    7.5

    7.0

    7.0

    Monetary base 1/

    8.0

    7.9

    8.0

    8.0

    8.0

    8.0

    Broad money

    47.5

    47.4

    49.4

    50.1

    50.3

    50.9

    Memorandum Items

    Nominal GDP (billions of colones) 2/

    44,810

    47,059

    49,116

    52,531

    56,237

    60,132

    Output gap (as percent of potential GDP)

    -0.3

    1.0

    0.6

    0.5

    0.4

    0.2

    GDP per capita (US$)

    13,240

    16,390

    17,901

    19,013

    20,009

    21,045

    Unemployment rate

    11.7

    7.3

    6.9

    8.0

    8.5

    9.0

    Sources: Central Bank of Costa Rica, and Fund staff estimates.

    1/ Includes currency issued and required reserves.

    2/ National account data reflect the revision of the benchmark year to 2017 for the chained volume measures, published in January 2021.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    https://www.imf.org/en/News/Articles/2025/02/28/mcs-022825-costa-rica-staff-concluding-statement-of-the-2025-article-iv-consultation-mission

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI United Kingdom: Plans to protect Edinburgh from climate effects

    Source: Scotland – City of Edinburgh

    Detailed plans have been produced outlining 66 steps the council and partners must take to get ‘climate ready’.

    Our Climate Ready Edinburgh Implementation Plan, published today (Friday 28 February), will be considered by members of the Policy and Sustainability Committee next month (Tuesday 11 March).

    Over the next two years, it is proposed that all actions in the plan are implemented to help Edinburgh adapt to the impacts of climate change.

    This could include working with partners to tackle the risks of flooding and coastal erosion and protecting the World Heritage Site, to planting trees and exploring transport systems to make the city resilient against weather extremes.

    It is hoped this work will help to protect homes from flooding and overheating, safeguard our buildings and support new climate skills and jobs, while increasing the resilience of our ancient city against the future risks of climate change.

    Some of the proposed steps to implement our Climate Ready Edinburgh Plan 2024-2030 include:

    • Identifying trigger points and action needed to prepare for weather extremes 
    • Making Edinburgh a Million Tree City by planting 25,000 new trees a year 
    • Prioritising street tree planting in areas prone to flooding and overheating
    • Increasing the tree canopy from 17% to 20% of the whole city by 2045
    • Establishing a Wilding Wee Spaces Schools programme
    • Undertaking a flood study to determine the long-term management of existing defences along the coast
    • Completing a surface water flood management project with Scottish Water in Craigleith by 2026
    • Delivery of new small-scale adaptation and energy retrofit pilot projects in the Old and New Towns of Edinburgh World Heritage Site by 2026
    • Monitoring issues of damp in Council housing, addressing most at risk properties
    • Working with providers to increase the resilience of Edinburgh’s transport systems.

    Council Leader, Jane Meagher, said:

    With architecture spanning 1,000 years and two World Heritage Sites, more trees than any other Capital city and a vast coastline, there is no question that Edinburgh’s natural and built environment is unique. Our Climate Ready plan has been designed to protect and enhance the place we are lucky enough to call home.

    Recent events have been a stark reminder of how disruptive weather can be to our city and to property. As such, we need to focus our efforts on adapting and preparing for such risks. 

    Where we face issues of flooding and dampness, it disproportionately affects disadvantaged households. Where buildings suffer from poor energy efficiency, this brings up the cost of bills. It is to this end that climate change goes hand in hand with poverty as the biggest challenge we face, and we cannot tackle one without the other. 

    With our businesses at risk as much as our homes, there is also a clear economic case for getting our capital ‘climate ready’. This report makes it clear that this work will require significant investment, but the costs of failing to prepare are higher. That is what has driven us to pledge an additional £2.9m to address our climate and nature emergencies in the budget we set last week. It is also why we have invested £500,000 into protecting our coastline with the successful introduction of new groynes at Portobello Beach.

    If approved next month by Committee, this detailed 66-step plan will further guide us and partners to become a ‘climate ready’ capital. Climate change is a major threat to our health and that of our ancient, coastal city and it is crucial that we work with partners to protect it.

    Gordon Reid, Scottish Water and chair of the Edinburgh Adapts Partnership that developed the plan, said:

    We are already seeing the impacts of a changing climate in Edinburgh, with more frequent severe storms causing flooding, damage to buildings and disruption to travel.

    If we don’t take action then we will see greater impacts to the people, buildings, economy and the services we all rely on in the city. Many of these impacts disproportionately effect disadvantaged households and we need to ensure that we act to deliver adaptation for everyone in society as part of the just transition to a climate changed future.

    In addition, we need to act to address the nature emergency and many of the actions in the plan will address adaption and nature, delivering multiple benefits for the city.

    Yann Grandgirard, Head of Climate Change at Edinburgh World Heritage and member of the Edinburgh Adaptation and Nature Partnership, said:

    Climate change is one of the biggest threats to the Old and New Towns of Edinburgh World Heritage Site, affecting its integrity, and undermining our efforts to preserve it and share its cultural values with current and future generations.

    Climate change impacts are diverse and not limited to physical damages to our historic buildings, streets and green spaces. They also affect our experience of this special part of the city – a vibrant place where people live, work, study and visit.

    The finalisation of the Edinburgh Climate Ready implementation plan is an important step in providing the necessary framework to protect and enhance both the World Heritage Site and the city through sensitive adaptation actions. It will act as a critical tool to prioritise climate actions, attract much needed funding and support partnerships across the city.

    MIL OSI United Kingdom