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Global South Reeling From High Cost of Basic Goods Amid Russian Invasion of Ukraine: Survey
"The most vulnerable people around the world are bearing the brunt of skyrocketing food, fuel, and fertilizer prices, with women and girls the hardest hit."
Jun 26, 2023
A report published Monday by the international anti-poverty group ActionAid revealed that the cost of food, fuel, and fertilizer continues to increase in some of the world's most vulnerable communities due to Russia's ongoing 16-month invasion of Ukraine.
The survey of more than 1,000 community leaders and members from 14 countries in Africa and Asia plus Haiti conducted by the Johannesburg-based NGO found that some families are spending up to 10 times what they paid for necessities nearly 16 months ago.
This, despite the latest United Nations Food and Agriculture Organization Food Price Index—which tracks monthly changes in the price of a basket of food items in various countries—indicating a nearly 12% decline in global prices since February 2022, the month Russian forces invaded neighboring Ukraine.
Community leaders in almost all of the surveyed countries also reported an increase in child marriages, a sign of growing desperation among the world's poor.
"This pioneering research shows that since the onset of the war in Ukraine, the most vulnerable people around the world are bearing the brunt of skyrocketing food, fuel, and fertilizer prices, with women and girls the hardest hit," ActionAid global policy analyst Alberta Guerra said in a statement. "They are disproportionally affected by multiple crises that impact their food intake, education, their right to live free from child marriage, and their mental health and well-being."
Joy Mabenge, ActionAid's country director for Zimbabwe—a particularly hard-hit country where reported gasoline prices skyrocketed by more than 900%, the cost of pasta soared by as much as 750%, fertilizer was 700% dearer, and feminine hygiene pads increased sixfold in price—said that "food and fuel prices in Zimbabwe have been increasing on a near-daily basis, hitting the country's many families who live below the poverty line the hardest."
"They are literally living one day at a time, not knowing where their next meal will come from."
"In certain areas, some households cannot even afford one meal a day because the food prices have spun completely out of control, leaving many battling to keep their heads above water," Mabenge added. "They are literally living one day at a time, not knowing where their next meal will come from."
Some of the survey's findings include:
- Communities are on average now spending twice as much (101% more) on a loaf of bread (rising by up to 614% in the Binga district of Zimbabwe) and 119% more on pasta;
- Average prices for fertilizers rose by 118%;
- The cost of period pads soared by 83% on average;
- The average cost of petrol increased by 80%;
- Sugar was up by an average of 59% (rising by more than 800% in Zimbabwe's Binga district);
- Cooking oil was up by an average of 57% (rising by 224% in Somaliland's Wajale district); and
- Cooking gas was up by an average of 47% (rising by 216% in the Kwara area of Nigeria).
"Almost a year-and-a-half since the outbreak of the war in Ukraine in February 2022, the impact of the conflict is continuing to intensify in the world's most vulnerable hunger hot spots," ActionAid stated. "The price hikes are particularly alarming over a period when incomes have fallen nearly a quarter across the communities surveyed, or by 133% in one area of Ethiopia."
"Almost a year-and-a-half since the outbreak of the war in Ukraine in February 2022, the impact of the conflict is continuing to intensify in the world's most vulnerable hunger hotspots."
"Children's education prospects are also being threatened," the group added. "Community leaders... surveyed said that the increased cost of living had led to higher school dropout rates for boys as parents struggle to afford school fees or are forced to rely on child labor to support their livelihoods, while leaders in eight... countries said the same had happened for girls."
Roster Nkhonjera, a 40-year-old mother of five from Rumphi district in Malawi, said she had to take her children out of school due to untenable living costs.
"I have failed to pay school fees for my two children due to price hikes," she told ActionAid. "What I earn from my small business barely covers one meal a day for my children."
ActionAid said the news isn't all doom and gloom.
"The survey also revealed that many communities have shown resilience in tackling the impacts of the crisis, identifying and practicing sustainable coping mechanisms," the group said. "Community members in 12 of the 14 countries surveyed said that using agroecology was helping them to make savings on crop production. Agroecology means adopting farming practices that work with nature, such as using local manure to build soil fertility and reduce reliance on chemical fertilizers."
Guerra asserted that "social protection measures need to be urgently introduced, including free education services and free school meals, to assist the families who are most at risk."
"In the longer term, governments dependent on food imports must also invest in national and regional food reserves to act as buffers and reduce countries' vulnerability to food shortages and price rises," she continued.
"The catastrophic impacts we are seeing make it clear why a just transition to renewable energy and agroecological farming practices is needed now more than ever, both to protect communities from shocks but also to offer resilience against the climate crisis," added Guerra. "There is no time to waste."
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'Everything Is Destroyed': 90% of Mozambique Port City Wrecked by Tropical Cyclone Idai
"The people who've done the least to change the climate suffer the most."
Mar 18, 2019
Hundreds of people were killed and many more remain missing after a tropical cyclone destroyed 90 percent of the port city of Beira, Mozambique, before moving on to Malawi and Zimbabwe--eliciting fresh demands for bolder efforts to battle the climate crisis that is making extreme weather more common and devastating.
An initial assessment from the International Federation of Red Cross and Red Crescent Societies (IFRC) on Monday found that 90 percent of the city and the surrounding area "is completely destroyed" after experiencing a direct hit from Cyclone Idai last Thursday.
\u201c~36 hours after the landfall of Cyclone #Idai \u2014 what the @WMO called a "potential worst case scenario\u201d \u2014 these are some of the first photos of Beira, Mozambique, a city that is still largely cut off from the rest of the world by flooding.\n\nA growing humanitarian catastrophe.\u201d— Eric Holthaus (@Eric Holthaus) 1552742769
"The situation is terrible. The scale of devastation is enormous," said Jamie LeSueur, who is leading the IFRC team into Beira. "Communication lines have been completely cut and roads have been destroyed. Some affected communities are not accessible."
\u201cThe @CruzVermelhaMOZ and @ifrc team flew into #Beira this morning. The devastation from #cycloneidai is massive but #RedCross is here on the ground and responding. @DekunleCharles @KaufmanR @hagacaroline @CorButler\u201d— Jamie LeSueur (@Jamie LeSueur) 1552845746
"I think this is the biggest natural disaster Mozambique has ever faced," Celso Correia, the country's environment minister, told the South Africa-based Mail & Guardian. "Everything is destroyed. Our priority now is to save human lives."
Citing the Red Cross and government officials, The Associated Pressreported Monday that across the three African countries, "more than 215 people have been killed by the storm, hundreds more are missing, and more than 1.5 million people have been affected by the widespread destruction and flooding."
However, LeSueur noted, aid workers and government officials are still working to access the damage: "Beira has been severely battered. But we are also hearing that the situation outside the city could be even worse. [Sunday], a large dam burst and cut off the last road to the city."
Speaking to state-owned Radio Mozambique on Monday, President Filipe Nyusi said the death toll may surpass 1,000 people in his country alone.
\u201cWe made it to #Beira. Coming in by helicopter we saw significant damage, barely any houses seemed intact, power lines and trees are down, many parts are flooding. What we hear that the situation outside the city is even worse #cycloneIdai @ifrc @IFRCAfrica @CruzVermelhaMOZ\u201d— Caroline Haga (@Caroline Haga) 1552842307
As aerial footage began to circulate online Monday, the emerging sense of devastation provoked calls for the world to "wake up" to the reality of the global climate crisis:
\u201cIt is confirmed that 90% of the city Beira in Mozambique is destroyed by a cyclone. So the city of half a million citizens have just been destroyed by the consequences of climate change. 120 lives + lost. #ClimateChangeIsReal #timetowakeup \n\nhttps://t.co/ihD2iIpml7\u201d— Martin Strand (@Martin Strand) 1552900390
\u201cInsane Cyclone Idai hits Zimbabwe, Mozambique, all of Southern Africa. This is really too much. Climate change is coming for us all and governments are so ill-prepared for the consequences! #Zimbabwe <3 #Mozambique <3 #Malawi <3 https://t.co/FXbOxZ7X3h\u201d— Amanda Leigh Lichtenstein (@Amanda Leigh Lichtenstein) 1552921692
\u201cAwful news out of Mozambique after Cyclone Idai \u2014 a powerful example of how more severe storms in a changing climate will impact people around the world. \nhttps://t.co/fnsrqu6WZ4\u201d— TNC Africa (@TNC Africa) 1552917120
\u201cThe death and destruction caused by cyclones in Malawi, Mozambique, and Zimbabwe continue. Over 250 people have been killed. Africa must urgently address climate change and the forces creating it! https://t.co/NZKHYIhMnr\u201d— Queenmother Of The Blacks (@Queenmother Of The Blacks) 1552916731
Bill McKibben, co-founder of the environmental group 350.org, tweeted a reminder on Monday that "the people who've done the least to change the climate suffer the most."
\u201cMajor African city "90% destroyed" by massive cyclone. The people who've done the least to change the climate suffer the most. https://t.co/0qDc8tPaik\u201d— Bill McKibben (@Bill McKibben) 1552906893
An editorial published Monday by Zimbabwe's state-owned daily newspaper, The Herald, called the storm a "wake-up call to climate change." As the editorial reads:
The increase in cyclones and other extreme weather phenomena like droughts and floods, clearly indicate that climate change effects are intensifying... While we cannot completely stop climate change, there is much the government can do to adapt to the weather phenomenon. After all the tumult surrounding Cyclone Idai dies down, it will be critical for government to have a re-look at the adaptive strategies to climate change which it has put in place.
While recognizing that in the short term, "there is urgent need for medicines, shelter, food, and new homes for the survivors of Cyclone Idai," the editorial calls for a long-term "holistic approach to fighting the effects of climate change and ensure that communities are cushioned even in the event of devastating cyclones."
\u201cZimbabwe is the latest Southern African State to suffer the effects of #IdaiCyclone, with dozens dead, adding to the devastation in parts of Mozambique and Malawi. @UN chief @antonioguterres expressed his sadness at the loss of life, https://t.co/2ZE9DwX4NI\u201d— UN News (@UN News) 1552870434
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Doctors Strike in Zimbabwe as Government Imposes Austerity to Attract More Chinese Investment
In the post-Mugabe era, the new regime aims to show it is worthy of a bigger piece of the Chinese pie
Jan 03, 2019
Zimbabwean President Emmerson Mnangagwa has had to cut his holiday vacation short to try to resolve an escalating strike among doctors at public hospitals over low pay and medical supply shortages. Now entering its second month, the strike comes as the government pursues a short-sighted effort to improve its reputation among international creditors by slashing public spending.
After 37 years of former President Robert Mugabe's iron fist rule, Zimbabwe's government is now rolling out the welcome mat for foreign investors -- particularly for China. While President Trump has his "Make America Great Again" slogan, Mnangagwa, who became president of this southern African country in 2017, is using the theme "Zimbabwe is open for business."
What that means in policy terms is severe austerity measures that hit the poor hardest in a country already reeling from skyrocketing poverty and unemployment.
What that means in policy terms is severe austerity measures that hit the poor hardest in a country already reeling from skyrocketing poverty and unemployment. And if the experiences of other countries are any guide, this approach will reduce, rather than increase the country's ability to repay foreign debts or resolve its current financial crisis.
In November, Zimbabwe's finance minister, Mthuli Ncube, announced the annual budget, which he summarized with the dissonant phrase "austerity for prosperity." He began his speech by quoting the 19th century British philosopher John Stuart Mill: "I have learned to seek my happiness by limiting my desires, rather than in attempting to satisfy them." This was an attempt to build rationale for cutting expenditure on most sectors of the economy.
Even prior to his speech, Ncube had begun implementing austerity, with his most unpopular move being the imposition of a 2 percent tax on electronic money transactions. Almost every Zimbabwean pays with mobile money, debit card, or by bank transfer because of a cash shortage tied to a spiraling trade deficit.
Ncube, just like most African policymakers who have gone the austerity route, believes that this will attract foreign investment, particularly from China, which is now considered a savior of Africa. This, he hopes, will help alleviate the financial crisis and open the market for international trade relations that will bring a much-needed foreign currency injection to boost failing local industries.
Small African countries like Zimbabwe risk being entangled in China's debt trap -- owing more than they can pay back in reasonable time.
Since 2010, China has invested US$10 billion in Zimbabwe, which is a meager slice of the US$230 billion invested in the rest of sub-Saharan Africa in the same period. According to the International Monetary Fund, Zimbabwe has one of the world's most fragile economies (probably the worst for a country without any wars or devastating natural disasters). It has external debts of US$9 billion -- more than half the size of the nation's GDP -- and needs more than US$15 billion for an immediate economic revival.
With western countries and investors wary of investing in Zimbabwe without massive restrictions and pre-conditions that the country looks unlikely to meet, China is the only global powerhouse willing to throw a bone, supposedly with "no strings attached."
Last year, a meeting between Mnangagwa and China's President Xi Jinping ended in a promise to write off Zimbabwe's debt to China, which had been accrued under former President Mugabe's rule. With the recent announcement by Xi Jinping that China will invest US$60 billion in Africa, one can begin to connect the dots that Ncube's fiscal policy is a clean-up act to attract more loans and investment by showing a commitment to paying back the money.
In fact, this is a game being played by almost all African nations. The Scramble for China is on, with countries competing for the biggest slice of China's cake. Last September twice as many African leaders attended the China-Africa cooperation summit in Beijing as the last UN general assembly.
Austerity policies reek of the neo-liberalism that the World Bank and IMF forced upon global south countries in the early 1980s in the form of structural adjustments and unequal free market policies.
The austerity measures are a calculated display by the government to show that Zimbabwe, under Mnangagwa's leadership, is worthy of getting a bigger slice of the Chinese pie because their money will be used efficiently, and this time debts will be paid. But, as several governmental bodies, development organizations, and economic analysts have already warned, small African countries like Zimbabwe risk being entangled in China's debt trap -- owing more than they can pay back in reasonable time.
Some of these warnings are coming from the United States and the EU, which clearly feel threatened by China's growing influence in Africa. But China's role does raise serious questions with not so clear answers. How will China protect its investment? How much will China be involved in ensuring a return on its investment? To what lengths and at whose expense (the public or the government - the rich or the poor), will countries like Zimbabwe go to try and pay back the debt? And with the growing unease, particularly from global north countries, that China is trying to export its labor-intensive industry to Africa, how will these countries protect their sovereignty in the process?
Austerity policies reek of the neo-liberalism that the World Bank and IMF forced upon global south countries in the early 1980s in the form of structural adjustments and unequal free market policies. In fact, Ncube has quoted the late UK Prime Minister Margaret Thatcher, who saw her neoliberal economic policies as the only path, often saying "There Is No Alternative" (TINA).
Small sovereign nations like Zimbabwe need to look at other African countries that have tried the same policies and failed. A wave of anti-austerity protests earlier this year should serve as a warning of how devastating these unpopular policies can be. Protests have resulted in arbitrary detentions in Sudan, violent clashes in Tunisia, and political turmoil in South Africa, Egypt, Kenya, and Gabon.
Yanis Varoufakis, the former Greek minister of finance, knows from his own country's experience that these measures are self-defeating as they not only depress national income but also the government's revenue, therefore making the nation suffer rather than prosper. He calls austerity an "assault on the poor."
It's high time African governments start to implement policies that favor the well-being of their people first before pleasing the Money Masters. An economy that does not improve the lives of its citizens is a poor and failing economy.
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