Developing countries should fast-track US trade deals: World Bank president

Short Url
Updated 26 April 2025
Follow

Developing countries should fast-track US trade deals: World Bank president

  • Agrees with US push for removal of China from bank's list of“developing country” status
  • Says WB is also pushing to encourage private sector job creation in developing countries

WASHINGTON: Developing countries should strike swift trade deals with the United States at the “earliest possible” opportunity, the president of the World Bank told AFP Friday, after a busy week with global financial leaders in Washington.
Ajay Banga was interviewed by AFP at the World Bank and International Monetary Fund’s Spring Meetings, which have been held this year under a cloud of uncertainty about President Donald Trump’s stop-start tariff rollout.
The Bank has been advising developing countries to get a deal done quickly with the United States, and to then focus attention on cutting trade barriers and boosting regional flows of goods, Banga said.
“You need to negotiate trade systems with the US at the earliest possible (opportunity),” he said. “If you delay, it hurts everyone.”
Trump’s tariffs have roiled financial markets, sent volatility surging and spooked investors and consumers.
Since returning to office in January, the US leader has imposed a “baseline” 10 percent tariff on most countries, with much higher duties on China, and 25 percent sector-specific levies on areas including steel, aluminum, and automobiles not manufactured in the United States.
He also introduced much higher tariffs on dozens of countries — which have since been temporarily paused — accusing them of having an unfair trade balance with the United States.

China’s ‘absurd’ status
Banga also addressed the criticism leveled by US Treasury Secretary Scott Bessent at the Bank earlier this week.
Bessent criticized China’s “absurd” developing country status and called on Banga and IMF Managing Director Kristalina Georgieva to “earn the confidence of the administration.”
“I don’t think he’s wrong,” Banga said of Bessent’s comments on China.
“A country that is the size of China and the capability of China, at some point, should no longer be taking money from IBRD,” he said, referring to the International Bank for Reconstruction and Development — an arm of the World Bank that lends largely to middle-income countries.
Such a move would require the support of the World Bank’s executive board, which is made up by member states.
China, Banga said, borrowed around $750 million from the IBRD last year, while paying billions of dollars to the institution in repayments and donations.
“My view is, I’ve brought it down to 750 (million), and I’m trying to figure out a way to deal with China to bring it down further,” he said. “I want to get it done. And that’s what I’m talking to the Chinese about.”
Banga said the Trump administration’s criticisms of the World Bank, which included “expansive policy overreach,” were not unusual, citing newly elected governments in countries including France, Japan and Korea.
“I keep telling people this is a perfectly constructive request, to say, tell me and show me that you guys are the kind of people that advance the interests of my taxpayer, of my country,” he said.
“I take it in that spirit,” he said. “There’s nothing wrong with it.”


Since taking the helm of the Washington-based development lender in 2023, Banga has pushed to streamline operations and encourage private sector participation, while focusing on job creation and electricity connectivity.
Among the Bank’s current priorities is a push with the African Development Bank to connect 300 million people in sub-Saharan Africa to electricity by 2030 — a process that will require a vast amount of new energy to be brought online.
“You should try and get (energy) in the best, accessible way and the lowest possible cost,” Banga said, suggesting that in addition to renewable power, nuclear and gas could help provide a base load — two energy sources the World Bank is currently hesitant to finance.
The Bank’s executive board is set to discuss its energy strategy in June, Banga said, adding that funding for both nuclear and gas would likely be on the agenda.
Banga said the Bank is also pushing to encourage private sector job creation in developing countries — beyond simply outsourcing jobs from advanced economies.
“Because then you end up with challenges in (advanced economies), and you can see that people are speaking about them with their votes,” he added.
 


US official says Trump not signing G7 statement on Israel-Iran de-escalation

Updated 5 sec ago
Follow

US official says Trump not signing G7 statement on Israel-Iran de-escalation

  • Canadian and European diplomats said G7 attendees are continuing discussions on the conflict at the summit in Canada, which ends on Tuesday

CALGARY, Alberta: A US official said on Monday that President Donald Trump would not sign a draft statement from Group of Seven leaders calling for de-escalation of the Israel-Iran conflict.
The draft statement, seen by Reuters, also commits to safeguarding market stability, including energy markets, says Iran must never have a nuclear weapon, and that Israel has the right to defend itself.
Canadian and European diplomats said G7 attendees are continuing discussions on the conflict at the summit in Canada, which ends on Tuesday.

 


Anti-domestic violence groups are suing over the Trump administration’s grant requirements

Updated 17 June 2025
Follow

Anti-domestic violence groups are suing over the Trump administration’s grant requirements

  • The groups say the requirements, which Trump ushered in with executive orders, put them in “an impossible position”

Seventeen statewide anti-domestic and sexual violence coalitions are suing President Donald Trump’s administration over requirements in grant applications that they don’t promote “gender ideology” or run diversity, equity and inclusion programs or prioritize people in the country illegally.
The groups say the requirements, which Trump ushered in with executive orders, put them in “an impossible position.”
If they don’t apply for federal money allocated under the Violence Against Women Act of 1994, they might not be able to provide rape crisis centers, battered women’s shelters and other programs to support victims of domestic violence and sexual assault. But if the groups do apply, they said in the lawsuit, they would have to make statements they called “antithetical to their core values” — and take on legal risk.
In the lawsuit filed in US District Court in Rhode Island on Monday, the coalitions said that agreeing to the terms of grants could open them to federal investigations and enforcement actions as well as lawsuits from private parties.
The groups suing include some from Democratic-controlled states, such as the California Partnership to End Domestic Violence, and in GOP-dominated ones, including the Idaho Coalition against Sexual and Domestic Violence.
The groups say the requirements are at odds with federal laws that require them not to discriminate on the basis of gender identity, to aid underserved racial and ethnic groups, and to emphasize immigrants with some programs and not to discriminate based on legal status.
The US Department of Justice, which is named as a defendant in the lawsuit, did not respond to a request for comment.
The suit is one of more than 200 filed since January to challenge President Donald Trump’s executive orders. There were similar claims in a suit over anti-DEI requirements in grants for groups that serve LGBTQ+ communities. A judge last week blocked the administration from enforcing those orders in context of those programs, for now.


Nigerian state signs peace pact with criminal gangs: official

Updated 16 June 2025
Follow

Nigerian state signs peace pact with criminal gangs: official

  • Dozen bandit kingpins met with local officials to renounce violence. With no ideological leaning, the bandits are motivated by financial gains
  • As a mark of goodwill, the bandits surrendered weapons and released 17 hostages, with the promise to free more people they were holding

KANO, Nigeria: Authorities in Nigeria’s northwestern Katsina state struck a peace deal at the weekend with criminal gangs to try to end years of violence, a government official said Monday.
Katsina is one of several states in northwestern and central Nigeria terrorized by criminal gangs that the locals refer to as bandits.
The gangs raid villages, kill and abduct residents as well as torch homes after looting them.
The gangs maintain camps in a huge forest straddling Zamfara, Katsina, Kaduna states in the northwest region and Niger state in the country’s central zone and have carried out mass kidnappings of students from schools in recent years.
On Saturday, a dozen bandit kingpins met with local officials and community leaders in the town of Danmusa, where they renounced violence and pledged to turn a new leaf, Nasiru Mu’azu, Katsina state internal commissioner said.
“There was a peace meeting between 12 bandit leaders and the local community leaders in Danmusa where the bandits renounced their criminal activities and committed to peace,” Mu’azu said.
The bandits initiated the meeting, he said. “The community welcomed the overtures and agreed to a peace deal as long as the bandits are genuinely interested in peace,” he said.
As a mark of goodwill, the bandits surrendered weapons and released 17 hostages, with the promise to free more people they were holding.
Authorities in Katsina had earlier ruled out peace deals after the criminal gangs reneged on peace negotiations and returned to crime.
With no ideological leaning, the bandits are motivated by financial gains but their increasing alliance with jihadists from the northeast has been raising concern among authorities and security analysts.
In 2023, Katsina state governor Dikko Umar Radda established Katsina Community Watch Corps, comprising around 2,000 vigilantes to assist the military and police in fighting the bandits.
“We have been fighting the bandits for the past two years and the state governor has reiterated he will not negotiate from a position of weakness,” Mu’azu said.
“But since they on their own came forward and extended the olive branch, we have to give them that opportunity.”
In November last year, neighboring Kaduna state, which has rejected negotiation with bandits, signed a peace accord with the criminal gangs terrorizing Birnin-Gwari district.


Hunger crisis deepens in global hotspots as famine risk rises, UN warns

Updated 16 June 2025
Follow

Hunger crisis deepens in global hotspots as famine risk rises, UN warns

  • Conflict, economic shocks, and climate-related hazards blamed for harsh conditions in the worst-hit areas

ROME: Extreme hunger is intensifying in 13 global hot spots, with Gaza, Sudan, South Sudan, Haiti, and Mali at immediate risk of famine without urgent humanitarian intervention, a joint UN report warned on Monday.

The “Hunger Hotspots” report by the UN Food and Agriculture Organization and World Food Programme blamed conflict, economic shocks, and climate-related hazards for conditions in the worst-hit areas.

The report predicts food crises in the next five months.

It called for investment and help to ensure aid delivery, which it said was being undermined by insecurity and funding gaps.

“This report is a red alert. We know where hunger is rising and we know who is at risk,” said WFP Executive Director Cindy McCain. 

“Without funding and access, we cannot save lives.”

For famine to be declared, at least 20 percent of the population in an area must be suffering extreme food shortages, with 30 percent of children acutely malnourished and two people out of every 10,000 dying daily from starvation or malnutrition and disease.

In Sudan, where famine was confirmed in 2024, the crisis is expected to persist due to conflict and displacement, with almost 25 million people at risk.

South Sudan, hit by flooding and political instability, could see up to 7.7 million people in crisis, with 63,000 in famine-like conditions, the report said.

In Gaza, Israel’s continued military operations and blockade have left the entire population of 2.1 million people facing acute food insecurity, with nearly half a million at risk of famine by the end of September, the report said.

In Haiti, escalating gang violence has displaced thousands, with 8,400 already facing catastrophic hunger, while in Mali, conflict and high grain prices put 2,600 people at risk of starvation by the end of August.

Other countries of high concern include Yemen, the Democratic Republic of the Congo, Myanmar, and Nigeria.

“Protecting people’s farms and animals to ensure they can keep producing food where they are, even in the toughest and harshest conditions, is not just urgent — it is essential,” said FAO Director General QU Dongyu.

Some countries, such as Ethiopia, Kenya, and Lebanon, have improved and have been removed from the FAO and WFP’s Hunger Hotspots list.

The UN’s Office for the Coordination of Humanitarian Affairs said on Monday it was drastically scaling back its global humanitarian aid plans because of the “deepest funding cuts ever” — leaving tens of millions of people facing dire straits.

OCHA said it was seeking $29 billion in funding for 2025 compared to the $44 billion requested initially in December, in a “hyper-prioritized” appeal.

“Brutal funding cuts leave us with brutal choices,” OCHA chief Tom Fletcher said in a statement.

“All we ask is 1 percent of what you chose to spend last year on war. But this isn’t just an appeal for money it’s a call for global responsibility, human solidarity, and a commitment to end the suffering.”

In late April, while visiting a hospital in Kandahar in Afghanistan, Fletcher warned: “Cutting funding for those in greatest need is not something to boast about ... The impact of aid cuts is that millions die.”

With 2025 nearly halfway through, the UN has received only $5.6 billion out of the $44 billion sought initially for this year — a mere 13 percent.

In total, the original plan covered more than 70 countries and aimed to assist nearly 190 million vulnerable people.

Even so, that plan acknowledged there were 115 million people the UN could not reach.

“We have been forced into a triage of human survival,” Fletcher said on Monday.

The mathematics “is cruel, and the consequences are heartbreaking.”

“Too many people will not get the support they need, but we will save as many lives as we can with the resources we are given,” he said.

Aid will now be directed so that it can “reach the people and places facing the most urgent needs,” with those in “extreme or catastrophic conditions” as the starting point, said Fletcher.

“This will ensure that limited resources are directed where they can do the most good — as quickly as possible,” the statement said.


Norway’s king makes symbolic visit to Svalbard, in coveted Arctic

Updated 16 June 2025
Follow

Norway’s king makes symbolic visit to Svalbard, in coveted Arctic

  • the region around Svalbard has gained in geopolitical and economic importance as tensions mount between Russia and the West, not least with the ice sheet receding
  • Interest in the Arctic has intensified since US President Donald Trump’s threats this year to annex Greenland, which he says the US needs for reasons of national security

OSLO: Norway’s King Harald made a highly symbolic visit on Monday to the country’s Svalbard archipelago, located in an Arctic region coveted by superpowers like the United States, Russia and China.
Situated halfway between the European continent and the North Pole, the region around Svalbard has gained in geopolitical and economic importance as tensions mount between Russia and the West, not least with the ice sheet receding.
Interest in the Arctic has intensified since US President Donald Trump’s threats this year to annex Greenland, which he says the US needs for reasons of national security.
“It was especially appropriate to come this year,” the 88-year-old monarch said after stepping off the royal yacht with his wife Sonja in Longyearbyen, Svalbard’s main town which is home to 2,500 people.
“We have seen increased attention being paid to the Arctic and Svalbard. This brings both challenges and opportunities,” he added.
The king was in Svalbard to take part in celebrations marking the 100th anniversary of the entry into force of an international treaty that put the Svalbard archipelago under Norwegian rule.
Drawn up in Paris in 1920, the treaty gives the citizens of the nearly 50 signatories — including China and Russia — an equal right to exploit the archipelago’s natural resources.
As a result, Russia is able to maintain two settlements, including a mining community, in the small village of Barentsburg where a Lenin statue stands and Soviet flags are regularly flown — all in a NATO country.
China has meanwhile defined itself as a “near-Arctic state” and has displayed a growing interest in the region.
“When the royal yacht ‘Norge’ drops anchor with the royal standard atop the mast, this emphasizes, even more than King Harald’s words could say, that Norway is taking care of its rights and assuming its responsibilities,” said Lars Nehru Sand, a commentator at public radio NRK.
“The king is here to show that this is ours,” he said.