FAO: Conflicts in Middle East Hamstring Efforts to Eradicate Hunger

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
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FAO: Conflicts in Middle East Hamstring Efforts to Eradicate Hunger

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)
FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed during the report's launch in Cairo, Egypt (Asharq Al-Awsat)

Food and Agriculture Organization (FAO) called for increasing the cooperation and solidarity among the countries of the Near East and North Africa region to eradicate hunger, which affects about 40 million people in the region, according to official figures.

The organization also requested intensifying the efforts to end conflicts and achieve development after food insecurity levels in conflict countries were six times higher than that of more stable countries of the region.

FAO estimates that about 55.2 million people suffer from acute food insecurity in the region, confirming that 10.2 percent of the region's population suffer from malnutrition, while 12 percent suffer from food insecurity.

FAO Assistant Director-General and Regional Representative, Abdessalam Ould Ahmed reiterated importance of establishing resilient and sustainable peace in the region is important for improving the well-being of the population.

Speaking to Asharq Al-Awsat, Ould Ahmed stressed that no country in the region can succeed on its own because the countries are linked, adding that it is necessary to work together to compensate "lost opportunities" in comprehensive development, including food security.

In Cairo, FAO launched its 2017 report "Regional Overview of Food Security and Nutrition in the Near East and North Africa (NENA)" which highlights in particular how an ongoing intensification of violence is opening a wide "hunger gap" between countries being affected by conflicts and those that are not.

The report indicated that in countries directly impacted by conflict, 27.2 percent of all people were chronically hungry, or undernourished, during the 2014-2016 period, which is six times higher than the share of the population that was undernourished in countries not affected by strife.

Meanwhile, "severe food insecurity", one of FAO's metrics to measure hunger, in conflict-affected countries now is double that in non-conflict countries.

In a region largely made up of developing, middle-income countries, chronic hunger typically affects less than 5 percent of their populations. Violence in some of these countries has seen the proportion of chronically hungry people in conflict zones increase to levels comparable with the world's poorest countries.

This will make realistic progress towards eradicating hunger in the region using traditional tools of policy-making difficult, unless decisive steps towards peace and stability are taken, the report cautions.

The report highlights several regional countries being particularly affected by conflict, with profound consequences for people's incomes and food security.

In Syria, violence has provoked a 67 percent reduction in the country's Gross Domestic Product (GDP) and severely undermined food security, as between 70 and 80 percent of Syrians now need humanitarian assistance, while 50 percent require food assistance.

In Iraq, the report stated that violence led to a 58 percent decline in GDP, with 30 percent of the population needing humanitarian assistance while 9 percent requires food assistance.

As for Yemen, the conflict led to a situation where 70 to 80 of the population in need of humanitarian assistance and 50 percent require food assistance.

Whereas in Libya, conflict is undermining food security with 6 percent of the population in need of food assistance, according to the report.

During the launch ceremony, FAO Assistant Director-General Ould Ahmed highlighted the pivotal importance of building resilience and sustaining peace in the Near East and North Africa region to improving peoples' well-being.

He pointed to "the growing need to implement long-term and comprehensive policies and practices to achieve Zero hunger by 2030," adding that "when countries in the region are suffering from an escalation of conflicts, the aim to tackle the region's deepest concerns of malnutrition, water scarcity and climate change becomes more challenging but at the same time more urgent".

Ould Ahmed concluded that only through improved cooperation and solidarity will the region be able to end conflicts and violence and get back to development.

FAO's report establishes a baseline for measuring future progress towards achieving the second goal of the SDG in the MENA region using the latest indicators for the SDG targets on hunger and food insecurity and malnutrition.

The report also identifies how conflict itself encumbers SDG monitoring with UN agencies gathering and assessing information on food security and nutrition status during conflict, but the data are not always complete and can be difficult to compare with peacetime data.

Other than statistics, the report focuses on the fundamental factors that improves food security and malnutrition: poverty reduction, economic growth, improvements in maternal and childhood nutrition and public health, increases in the quantity and quality of food and the cessation of violence.



Türkiye Says Russia Gave It $9 Billion in New Financing for Akkuyu Nuclear Plant

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
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Türkiye Says Russia Gave It $9 Billion in New Financing for Akkuyu Nuclear Plant

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)

Türkiye's energy minister said Russia had provided new financing worth $9 billion for the Akkuyu nuclear power plant being built by ​Moscow's state nuclear energy company Rosatom, adding Ankara expected the power plant to be operational in 2026.

Rosatom is building Türkiye's first nuclear power station at Akkuyu in the Mediterranean province of Mersin per a 2010 accord worth $20 billion. The plant was expected ‌to be operational ‌this year, but has been ‌delayed.

"This (financing) ⁠will ​most ‌likely be used in 2026-2027. There will be at least $4-5 billion from there for 2026 in terms of foreign financing," Alparslan Bayraktar told some local reporters at a briefing in Istanbul, according to a readout from his ministry.

He said ⁠Türkiye was in talks with South Korea, China, Russia, and ‌the United States on ‍nuclear projects in ‍the Sinop province and Thrace region, and added ‍Ankara wanted to receive "the most competitive offer".

Bayraktar said Türkiye wanted to generate nuclear power at home and aimed to provide clear figures on targets.


China Bets on Advanced Technologies to Revive Tepid Industrial Sector

A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
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China Bets on Advanced Technologies to Revive Tepid Industrial Sector

A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)

China pledged on Friday to double down on upgrading its manufacturing base and ​promised capital to fund efforts targeting technological breakthroughs, after its industrial sector delivered an underwhelming performance this year.

China's industry ministry expects output of large industrial companies to have increased 5.9% in 2025 compared with 2024, state broadcaster CCTV said on Friday, almost unchanged from the 5.8% pace in 2024.

It would also be less than the ‌6% pace ‌of the first 11 months of ‌2025, ⁠based ​on ‌data released by the National Bureau of Statistics, as a weak Chinese economy suppressed domestic demand.

Industrial output, which covers industrial firms with annual revenue of at least 20 million yuan ($2.85 million), recorded growth of 4.8% in November, the weakest monthly year-on-year rise since August 2024.

Chinese policymakers have been looking ⁠to create new growth drivers in the economy by focusing on advancing ‌its industrial sector.

China has also vowed stronger ‍efforts to achieve technological self-reliance ‍amid intensifying rivalry with the United States over dominance ‍in advanced technology.

At the annual two-day national industrial work conference in Beijing that ended on Friday, officials pledged to deliver major breakthroughs in building a "modern industrial system" anchored by advanced manufacturing.

The ​focus will be on sectors such as integrated circuits, low-altitude economy, aerospace and biomedicine, an industry ministry ⁠statement showed.

The statement comes after China launched on Friday a national venture capital fund aimed at guiding billions of dollars of capital into "key hard technologies" such as quantum technology and brain-computer interfaces.

On artificial intelligence, the industry ministry said it will expand efforts to help small and medium-sized enterprises adopt the technology, while fostering new intelligent agents and AI-native companies in key industries.

Officials also vowed to "firmly curb" deflationary price wars, dubbed "involution", referring to excessive and low-return competition among ‌firms that erodes profits.


Japan Proposes Record Budget Spending While Curbing Fresh Debt

Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
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Japan Proposes Record Budget Spending While Curbing Fresh Debt

Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)

Japan's government on Friday proposed record spending for next fiscal year while curbing debt issuance, underscoring Prime Minister Sanae Takaichi's challenge in boosting the ​economy while inflation remains above the central bank's target.

Her cabinet approved a draft budget of $783 billion that addresses market jitters by capping bond issuance and reducing the proportion of the budget financed by fresh debt to the lowest in almost three decades.

Also complicating Takaichi's policy challenge, core inflation in Tokyo stayed above the Bank of Japan's 2% target this month while the yen remains weak, bolstering the central bank's case to keep raising interest rates.

The record 122.3-trillion-yen budget for the year starting in April, a core part of Takaichi's "proactive" fiscal policy, will likely underpin consumption but could also accelerate inflation and further strain Japan's tattered finances.

DELICATE BALANCE OF BUDGET SUPPORT, DEBT RESTRAINT

Investor unease about fiscal expansion in an economy with the heaviest debt burden in the industrialized world has driven super-long government bond yields to record highs and weighed on the ‌yen.

"We believe we have ‌been able to draft a budget that not only increases allocations for key policy ‌measures ⁠but also takes ​fiscal discipline ‌into account, achieving both a strong economy and fiscal sustainability," said Finance Minister Satsuki Katayama.

She told a press conference the draft budget keeps new bond issuance below 30 trillion yen ($190 billion) for a second consecutive year, with the debt dependence ratio falling to 24.2%, the lowest since 1998.

The Takaichi government's efforts to reassure Japanese government bond investors were showing some success.

The 30-year JGB yield fell on Thursday from a record high 3.45% after Reuters reported the government will likely reduce new issuance of super-long JGBs next fiscal year to the lowest in 17 years. Yields slipped further on Friday on the administration's efforts at fiscal restraint.

The budget was not as large as initially feared, said Saisuke Sakai, senior economist at Mizuho Research & Technologies. "But political fragmentation raises ⁠the risk that Takaichi may resort to a large supplementary budget next year to secure opposition support, keeping alive market concerns that fiscal expansion could push the yen down and accelerate inflation," he ‌said.

"It's too optimistic to assume that the current environment will persist."

The proposed spending is ‍inflated by a jump in debt-servicing costs for interest payments and ‍debt redemption.

It also reflects a 3.8% rise in military spending to 9 trillion yen ($60 billion) as part of the assertive defense ‍policy of Takaichi, a conservative nationalist, and in line with a U.S. push for its allies to pay more for their own defense.

TOKYO INFLATION SLOWS BUT STILL POINTS TO RATE HIKES

The Tokyo core consumer price index, which excludes volatile costs of fresh food, rose 2.3% in December from a year earlier, less than market forecasts for a 2.5% gain and slowing from a 2.8% increase in November.

The data backs up the central bank's view that core inflation will ​slide below its 2% target in coming months on easing cost pressure, before resuming a more demand-led increase that justifies additional rate increases.

But some analysts warn of the risk renewed yen declines may prod firms to keep raising ⁠prices, leading to sticky, cost-led inflation that could quicken the pace of BOJ rate hikes.

"Today's data suggests food inflation may be peaking. But the weak yen may give firms an excuse to resume price hikes for food, which may keep inflation elevated," said Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute.

An inflation index for the capital that strips away both fresh food and fuel costs - closely watched by the BOJ as a measure of demand-driven prices - rose 2.6% in December after a 2.8% increase in November.

Data on Friday also showed Japan's factory output fell 2.6% in November from the previous month, deeper than market forecasts for a 2.0% drop, due to cuts in automobile and lithium-ion battery production.

The BOJ raised its policy rate last week to a 30-year high of 0.75%, taking another landmark step in ending decades of huge monetary support, in a sign of its conviction Japan is progressing toward durably hitting its 2% inflation target.

With core inflation exceeding the BOJ's target for nearly four years, Governor Kazuo Ueda has signaled the BOJ's readiness to keep raising rates if the economy continues to improve, backed by solid wage gains.

Yen bears, however, have dumped ‌the Japanese currency in the belief that Ueda's rate hikes are too gradual, prompting Katayama last week to threaten yen-buying intervention, saying the government was "alarmed as we are clearly seeing one-sided, sharp moves" in the yen.