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 – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.
However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.
The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.
Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.
The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.
The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.
This report by The Canadian Press was first published Oct. 17, 2024.
OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.
In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.
The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.
Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.
In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.
It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.
This report by The Canadian Press was first published Oct 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.
The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.
The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.
Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.
Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.
Overall manufacturing sales in constant dollars fell 0.8 per cent in August.
This report by The Canadian Press was first published Oct. 16, 2024.
