Warning that Afghanistan is facing “a make-or-break moment,” the United Nations chief on Monday urged the world to prevent the country’s economy from collapsing.
Secretary General Antonio Guterres also appealed to the Taliban to stop breaking its promises to allow women to work and girls to have access to all levels of education.
Eighty per cent of Afghanistan’s economy is informal, with women playing an overwhelming role, and “without them there is no way the Afghan economy and society will recover,” he said.
Guterres said the UN is urgently appealing to countries to inject cash into the Afghan economy, which before the Taliban takeover in August was dependent on international aid that accounted for 75 per cent of state spending. The country is grappling with a liquidity crisis as assets remain frozen in the United States and other countries, and disbursements from international organizations have been put on hold.
“Right now, with assets frozen and development aid paused, the economy is breaking down,” Guterres told reporters at UN headquarters in New York. “Banks are closing and essential services, such as health care, have been suspended in many places.”
The UN chief said that injecting liquidity to prevent Afghanistan’s economic collapse is a separate issue from recognition of the Taliban, lifting sanctions, unfreezing frozen assets or restoring international aid.
Guterres said cash can be injected into the Afghan economy “without violating international laws or compromising principles.” He said this can be done through UN agencies and a trust fund operated by the UN Development Program, as well as non-governmental organizations operating in the country. He added that the World Bank can also create a trust fund.
G20 leaders to discuss Afghanistan on Tuesday
Leaders of the world’s 20 largest economies — the G20 — are holding an extraordinary meeting to discuss the complex issues related to Afghanistan on Tuesday. On the issue of “the injection of liquidity in the Afghan economy,” Guterres said, “I think the international community is moving too slow.”
The Taliban overran most of Afghanistan as U.S. and NATO forces were in the final stages of their chaotic withdrawal from the country after 20 years. They entered the capital, Kabul, on Aug. 15 without any resistance from the Afghan army or the country’s president, Ashraf Ghani, who fled.
Guterres pointed to promises by the Taliban since the takeover to protect the rights of women, children, minority communities and former government employees — especially the possibility of women working and girls being able to get the same education as boys.
“I am particularly alarmed to see promises made to Afghan women and girls by the Taliban being broken,” he said, stressing that “their ability to learn, work, own assets and to live with rights and dignity will define progress.”
WATCH | Journalist and activist Mahbouba Seraj on what women in Afghanistan need:
Mahbouba Seraj on the fight to preserve women’s rights in Afghanistan
Mahbouba Seraj, the head of the Afghan Women’s Network, discusses the Taliban’s return to power and the future of women’s rights in Afghanistan with CBC’s Susan Ormiston. 5:02
However, Guterres said, “the Afghan people cannot suffer a collective punishment because the Taliban misbehave.”
He said the humanitarian crisis in Afghanistan is growing, affecting at least 18 million people, or half the country’s population.
Guterres said the UN has been engaging the Taliban every day on the safety and security of its staff, unhindered humanitarian access to all Afghans in need and human rights — especially for women and girls. “Gender equality has always been an absolute priority for me,” he said.
While humanitarian assistance saves lives, it won’t solve the country’s crisis unless an economic collapse is avoided, Guterres said.
“Clearly, the main responsibility for finding a way back from the abyss lies with those that are now in charge in Afghanistan,” he said.
Nonetheless, he warned, “If we do not act to help Afghans weather this storm, and do it soon, not only they but all the world will pay a heavy price.”
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
