13.4% of Arab Countries’ Populations Live in Acute Poverty

A general view of a street in downtown Cairo, Egypt, March 9, 2017
A general view of a street in downtown Cairo, Egypt, March 9, 2017
TT

13.4% of Arab Countries’ Populations Live in Acute Poverty

A general view of a street in downtown Cairo, Egypt, March 9, 2017
A general view of a street in downtown Cairo, Egypt, March 9, 2017

A report published this month estimated that the number of poor people in 10 Arab countries was 38.2 million, which represents 13.4 percent of the Arab population.

The first Arab Multidimensional Poverty Report was co-authored by the United Nations Economic and Social Commission for Western Asia (ESCWA), the United Nations Children’s Fund (Unicef), the Arab League, and the Oxford Poverty and Human Development Initiative.

Launched on September 21 at the United Nations General Assembly, the report covers 75% of Arab population. It also indicated that 38.2 millions of Arabs live in acute poverty, and 116.1 million in moderate poverty – that is a staggering 40.6% of the population studied.

The report divides regions into 3 groups, the poorest countries are Mauritania, Yemen, Sudan, and Comoros. The poorest countries have 42.6% of their households in acute poverty and nearly three-quarters in moderate poverty (72.7%).

Among the countries covered were Egypt, Tunisia, Morocco, Algeria, Jordan, Sudan, and Iraq.

In addition to the existing poverty rate, another quarter of the population is vulnerable to domestic poverty, the report said.

Multidimensional poverty is widespread, affecting more than 4 in 10 families and children, it added.

The report's analysis of poverty in Arab countries shows that it is concentrated in some geographic regions. The percentage of the poor is higher in rural areas and in households where the head of the household is not educated.

The poorest 15 provinces or states in 11 Arab countries (after adding Palestine to the report) are located in only 3 countries: Sudan (9 states), Mauritania (5 states) and Yemen.

Poverty among children in rural areas is about 55 percent, 1.8 times over that of children living in urban areas.

The report pointed out that the issue of child poverty is vital to the Arab region, as the population of minors represents more than a quarter of the total population.

The multidimensional poverty index measures non-monetary deprivation in all its aspects, painting a more accurate picture of the situation.

The report calls for improving educational gaps, social protection, safeguarding children, rural development and establishing an Arab poverty center.



Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
TT

Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.