Food supply chains will get disrupted globally

Food supply chains will get disrupted globally

As Climate change could cause 29% spike in cereal prices: leaked UN report, because Food supply chains will get disrupted globally, the study warns. Report to be officially released in August informs Nitin Sethi, of New Delhi in this article of Business Standard.

As far as the MENA region is concerned, food has always been in short supply, but does this mean it would get worse.

FAO estimates higher cereal output

The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8. Photo: Representative Image

“The rate and geographic extent of global land and freshwater resources over recent decades is unprecedented in human history,” a report authored by UN’s panel of scientists from across the world on climate change is set to inform. Business Standard reviewed a leaked copy of the draft report sent to the governments of 197 countries. The report warns that as the global temperatures rise, the stress on land resources and its productivity is set to rise.

The report by the UN Inter-governmental panel on climate change, is called, “IPCC Special Report on Climate Change, Desertification, Land Degradation, Sustainable Land Management, Food Security, and Greenhouse gas fluxes in terrestrial ecosystems.”

The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8.

The authors of the report, gleaning through state-of-art science research have concluded that, “Observed climate change is already affecting the four pillars of food security – availability, access, utilization, and stability – through increased temperatures, changing precipitation patterns, and greater frequency of some extreme events.”

Continuing climate change is expected to further “create additional stresses on land systems exacerbating risks related to desertification, land degradation and food security,” the report says.

In a significant finding for countries such as India, the authors say, at global warming of 2° Celsius, the population of drylands exposed and vulnerable to water stress, increased drought intensity and habitat degradation could be as high as 522 million. Scientists conclude that at current levels of greenhouse gas emission reductions committed by the countries under Paris Agreement there is a good likelihood for the planet to breach the 2° Celsius temperature rise barrier.

“In drylands, desertification and climate change are projected to cause further reduction in crop and livestock productivity, modify the composition of plant species and reduce biological diversity,” research endorsed by the scientific panel shows.

Half of the vulnerable population due to the climate-change induced aridity would be in South Asia. The degradation of land due to climate change is already leading to consequent shaving off of the global economy, the scientific panel notes. “There are increasingly negative effects on GDP from impacts on land-based values and ecosystem service as temperature increases,” the report says. But, it notes that, at the regional level, the impacts would vary. “Compound extreme events, such as a heat wave within a drought or drought followed by extreme rainfall, will decrease gross primary productivity of lands, the authors warn

The impact on agriculture in higher latitudes is recorded to be different than in lower ones, such as one covering India. “Increasing temperature are affecting agricultural productivity in higher latitudes, raising yields of some crops such as maize, cotton, wheat, sugar beets, while in lower-latitude regions yields of crops such as maize, wheat and barley are declining.

Modelling results, that the scientific panel reviewed, show that cereal prices could rise by up to 29 per cent in 2050 due to climate change, which would impact consumers globally through higher food prices, though the impact would vary by regions. The stability of food supply is expected to decrease as the magnitude and frequency of extreme events caused by climate change increases, disrupting food chains globally.

The increase in global temperatures and consequent climate change is already affecting the productivity of livestock, which is one a main-stay of Indian rural economy. The authors conclude, “Observed impacts in pastoral systems include pasture declines, lower animal growth rates and productivity, damaged reproductive functions, increased pests and diseases, and loss of biodiversity.”

At the same time coastal economies are already suffering an impact as well. “Coastal erosion is affecting new regions as a result of interacting human drivers and climate change such as sea-level rise and impacts of changing cyclone paths,” though the scientists hold a low level confidence in the scientific research that concludes the impact of climate change on cyclone paths.

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Gaza’s crafts industries fast disappearing

Gaza’s crafts industries fast disappearing

Israel’s 12-year blockade of the territory has accelerated this trend of Gaza’s crafts industries fast disappearing at a time when normal life seemed ever more difficult to bring back onto its streets. Decades in the besieged enclave, have somehow allowed stores to be reopened, students to head back to schools, and people generally resuming work. This article of Gulf News dated July 10, illustrates fairly well the particular situation of the strip today.


Gaza City, Gaza Strip: When Gazans think of better economic times, images of clay pottery, colorful glassware, bamboo furniture and ancient frame looms weaving bright rugs and mats all come to mind. For decades, these traditional crafts defined the economy of the coastal Palestinian enclave, employing thousands of people and exporting across the region. Today, the industries are almost non-existent.

While such professions have shrunk worldwide in the face of globalisation and Chinese mass production, Gazan business owners say Israel’s 12-year blockade has accelerated the trend. “We have been economically damaged. We are staying, but things are really difficult,” said Abed Abu Sido, one of Gaza’s last glassmakers, as he flipped through a glossy catalogue of his products.

At his quiet workshop, layers of dust covered the few remaining glass artifacts, requiring him to scrub them to reveal their colours. Cardboard boxes of unfinished products and materials were stacked floor-to-ceiling.

Abu Sido opened his business in the 1980s, selling many of his items to vendors in the popular marketplace of Jerusalem’s Old City. In his heyday, he said he took part in exhibitions in Europe. That changed after 2007, when the Hamas militant group overran Gaza, and Israel and Egypt responded by sealing Gaza’s borders. Abu Sido laid off his 15 workers and ceased operations the following year.

Israel says the blockade is needed to contain Hamas and prevent it from arming. But the closure, repeated rounds of fighting with Israel and a power struggle with the rival Palestinian Authority in the West Bank have hit Gaza hard.

London to be as hot as Barcelona by 2050?

London to be as hot as Barcelona by 2050?

London to be as hot as Barcelona by 2050? I research urban heat, and I’m sceptical said Robert Wilby, of Loughborough University.

Barcelona just had a week of temperatures above 30℃. It’s a few degrees hotter than the long-term average, but no heatwave. In winter, Spain’s second largest city is typically a mild 15℃ or so. With its climate regulated by warm Mediterranean waters, temperatures rarely drop below freezing.

Is this what the future holds for London? One group of scientists certainly thinks so. In a new study, they have tried to convey the risks of global warming by finding the closest modern-day climates to describe what the future might be like for certain cities. They predict that, for instance, Madrid’s climate in 2050 will be like Marrakech’s climate now, Seattle will resemble San Francisco, Stockholm will feel like Budapest, and that London will become like Barcelona.

It makes sense to focus on cities as they are literally “hot-spots” of climate risk due to their dense populations, concentration of assets and susceptibility to extreme weather. Getting this message across to city managers and vulnerable communities is not always easy.

The researchers gathered data on the background climate of 520 major cities. Nineteen variables, including maximum temperature of the warmest month and precipitation seasonality, were combined using a statistical method that takes account of their relative importance and interrelationships. Equivalent variables for 2050 were obtained from three climate models, which were all programmed to take the optimistic view that emissions will stabilise this century. Present and future city climates were then used to “twin” the most similar metropolises.

Pairing cities in this way is a clever idea. But such like-for-like comparisons are just too simplistic. This is because cities make their own climates according to their unique layouts, building materials, artificial heat sources, amounts of open or green spaces, and types of water feature.

There can be fundamental differences between two cities in these respects. For example, Barcelona has among the highest population densities in Europe, at about 16,000 per square kilometre, more than the 10,000 or so recorded by inner London boroughs. Population density is a useful indicator of both the intensity and level of exposure to the urban heat island – compact cities tend to be hotter cities.

Barcelona: dense city blocks around the Sagrada Família. marchello74 / shutterstock

While Barcelona is striving to become a greener city, nearly two-thirds of Greater London is already occupied by gardens, parks and water. Across the city, such spaces provide cool refuges for people and biodiversity. For instance, satellite observations reveal that on a hot summers day Richmond Park – a large space on the western edge of the city known for its deer – can be about 10°C cooler than parts of the more central Southwark, Lambeth and Westminster. Even in these central boroughs, temperatures are chillier along the Thames embankment than just a few hundred metres away. Hence, the multiple micro-climates experienced day-to-day and from place-to-place within a city are not readily characterised by a few summary statistics.

The actual “felt” temperature depends on a host of factors, not least the effect of atmospheric humidity. Conditions can become lethal when dangerous combinations of temperature and humidity are exceeded – something that unfortunately already occurs in cities such as Karachi in Pakistan or Kolkata in India.

Global warming means that 350m more people could be exposed to deadly heat by 2050 – and South Asian mega-cities are in the front-line. However, with 4°C of global warming even New York could become heat stressed. So any assessment of future conditions in global cities should evaluate the combined threat of heat with humidity. According to the Lancet Countdown 2018 Report, threats to human health from heatwaves are becoming more frequent and dangerous.

Despite the above reservations, the new study does alert us to the possibility that over one-fifth of the studied cities could shift to climate conditions hitherto unobserved anywhere on Earth. This applies to cities such as Kuala Lumpur in Malaysia, Libreville in Gabon and Manaus in Brazil, which are all in the tropics.

Extraordinary temperatures are already being experienced within the homes and workplaces of some low income communities of cities such as Accra, Ghana. Trying to visualise how these places might be further stressed by climate change is an important step towards improving the well-being of some of the world’s most vulnerable urban citizens.


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Robert Wilby, Professor of Hydroclimatic Modelling, Loughborough University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Economic and Governance Risks to the MENA Region

Economic and Governance Risks to the MENA Region

Economic and Governance Risks came as a no surprise assessment of today’s as well the immediate future of the MENA region. The inefficient state of most countries characterizes all of their public management and related corollaries: i.e., internal violence for some and external dependence for most. Even in the favourable assumption of relatively stable of the latter ones’ authorities, these prove powerless to achieve the objectives they have set themselves, because of the inefficiency of their administration and when these manage to achieve their objectives, it is at a high cost. Here is that Economic and Governance Risks to the MENA Region.

Exogenous factors, such as geo-economic division, climate change and technological threats all pose a particular risk to MENA, but so, too, do hazards that are more regional in nature. According to respondents in the Middle East and North Africa to the World Economic Forum’s Executive Opinion Survey, the top two risks across the region for doing business are “energy price shock” and “unemployment or underemployment.” These risks are largely economic in nature and affected by the health of governance in the region. Similarly, the number five risk, (“fiscal crises”), the number seven risk (“unmanageable inflation”) and the number 10 risk (“failure of financial mechanism or institution”) follow the same pattern of being largely economic in nature and potentially governance-driven.

The top risk, “energy price shock”, comes at a time when some countries have taken steps towards diversification, but the region is still largely a hydrocarbon economy, heavily reliant on revenue from this sector. Oil prices increased substantially between 2017 and 2018, from around USD 50 to USD 75. This represents a significant fillip for the fiscal position of the region’s oil producers, with the IMF estimating that each USD 10 increase in oil prices should feed through to an improvement on the fiscal balance of three percentage points of GDP. However, vulnerabilities to swings in oil prices have not disappeared and are particularly pronounced in countries where government spending is rising. This group includes Saudi Arabia, which the IMF estimated in May 2018 had seen its fiscal breakeven price for oil — that is, the price required to balance the national budget — rise to USD 88, 26 percent above the IMF’s October 2017 estimate and also higher than the country’s medium-term oil price target of USD 70 – USD 80.

It is no surprise, then, that Saudi Arabia remains one of five countries in the region that rank “energy price shock” as the top risk to doing business in the survey, along with Bahrain, Kuwait, Oman and Qatar.

The World Economic Forum in partnership with Marsh & McLennan Companies and Zurich Insurance Group released its Middle East and North Africa Risks Landscape Report, which uses data from the Global Risks Report 2019 and the Regional Risks for Doing Business 2018.

Click here to download the full briefing: Middle East and North Africa Risks Landscape Report >>

Click here to explore additional insights from Guy Carpenter >>

MENA start-up ecosystem on the rise

MENA start-up ecosystem on the rise

Saudi Gazette posted an article dated July 9, 2019, on MENA start-up ecosystem on the rise, explaining that it is all “positive news for the continually growing ecosystem with strong growth through a record number of transactions.”

DUBAI — Total funding across the Middle East and North Africa (MENA)-based start-ups was up 66% from H1 2018, MAGNiTT, the region’s most powerful startup platform, said in its H1 2019 MENA Venture Investment Report, which provides an in-depth analysis of start-up funding and venture capital across the Middle East and North Africa.

The report highlights positive news for the continually growing ecosystem with strong growth through a record number of transactions.

Philip Bahoshy, MAGNiTT’s founder, said “the MENA region is hitting its inflection point. The acceleration of funding we saw in the latter half of 2018 has continued into 2019.”

Bahoshy noted that “there are many signs of an ever maturing ecosystem. As start-ups grow, we have seen more start-ups raising larger tickets, more exits and a continued interest from International investors in the region, especially from Asia.”

He also pointed to “UBER’s acquisition of CAREEM is another example of a large international player acquiring a local company after Amazon’s acquisition of Souq. This will further act as a catalyst to spur on the regions entrepreneurial environment.”

The report noted that H1 2019 saw 238 investments in MENA-based start-ups, amounting to $471 million of total funding. This is an excellent indicator, a 66% increase in investment dollars compared to H1 2018, in which $283 million was invested.

The number of deals remained healthy at a record high, up 28% compared to H1 2018, showing continued appetite in start-ups from the region at all stages of investment.

Noor Sweid, General Partner of Global Ventures, said “the growth in the start-up and tech ecosystem in the region is phenomenal, and yet, we are just at the beginning of a trajectory that will see technology-driven companies grow significantly and incredibly quickly over the coming years. These numbers illustrate the momentum and successes that the underlying companies and founders are achieving, and the growth in the investment ecosystem and opportunities alongside them.”

The UAE remains the most active startup ecosystem with 26% of all deals and 66% of total funding. Saudi Arabia was one of the fastest growing ecosystems, up 2% from H1 2018 recording 26 investments in H1 2019.

The UAE has maintained its dominance with 26% of all transactions made in to UAE-headquartered start-ups in H1 2019, while it also accounted for 66% of total funding.

Khalfan Belhoul, CEO of the Dubai Future Foundation, explains this by highlighting that “With the vision of our leaders, and a strong strategy in place, the UAE has cemented its position as an ideal destination for startups, founders, creative thinkers, and innovators. We have leveraged that vision, through creating dynamic co-working spaces, agile legislation that supports innovation and attractive visa policies for entrepreneurs and business professionals, and we continue our efforts toward positioning Dubai as a global testbed for cutting-edge technologies.”

However, the landscape continues to evolve. Tunisia was the fastest growing ecosystem in H1 2019 – receiving the 5th highest number of deals at 8% of all deals, up 4% from H1 2018. While Saudi Arabia recorded 2% increase in number of deals, up to 11% of all transactions across the MENA region.

FinTech retained its top spot in H1 2019 and accounted for 17% of all deals. Notable investments include the $8 million in Yallacompare, $6 million in Souqalmal and $4 million in Beehive.

E-commerce still remains prevalent accounting for 12% of all deals, followed Delivery & Transport, which was the third most popular industry in terms total deals in H1 2019, accounting for 8%.

The report furthered said 130 institutions invested in MENA-based start-ups in H1 2019, of which 30% were from outside the region.

500 Startups remained the most active venture capital firm, especially at early stage investments, while Flat6Labs was the most active accelerator program.

Moreover, H1 2019 saw the influx trend of foreign investors continue. The entrance of China’s MSA Capital and Germany’s food conglomerate Henkel, among others, highlighted continued international interest in MENA start-ups. In fact, 30% of all entities that invested in MENA-based start-ups were international investors.

Walid Faza, Partner and Chief Operating Officer of MSA Capital, said: “Chinese models are shaping the consumption habits of emerging market tech consumers and MSA’s deep knowledge in both ecosystems positions us to add a lot of value to companies based in MENA.”

EMPG leads the start-up ecosystem with a $100 million fundraise, followed by Yellow Door Energy and Swvl

EMPG receives the highest amount of funding by a single start-up, raising $100 million in February 2019. Yellow Door Energy ($65M) and Swvl ($42 million) complete the top 3.

In total, the top 10 deals in H1 2019 account for 62% of the total investment amount in H1 2019, down 9% from H1 2019. In terms of exits, H1 2019 has seen 15 start-up exits take place across MENA, an increase of 5 compared to H1 2018.

The largest of these was Careem’’ landmark exit to Uber. Magnus Olsson, Co-Founder, Chief Experience Officer noted “Our $3.1 billion deal with Uber was a hugely significant moment, not just for Careem, but also for the Greater Middle East. It was the largest tech deal this part of the world has ever seen and puts our region’s emerging technology ecosystem on the map of both regional and foreign investors.” On the impact the deal will have across the ecosystem, Olsson noted that “Careem views its colleagues as owners of the business and so we introduced an equity scheme that will now see them financially benefit from the transaction. We hope that the deal will act as a catalyst for the next generation of tech startups in our region.”

— SG

International Cooperation for Sustainable Development

International Cooperation for Sustainable Development

The Peninsula, a daily of Qatar, elaborated as follows on July 9, 2019, on the Qatari role of international cooperation for sustainable development

Whereas Qatar was taken by surprise on June 5th, 2017, the international community was impressed by Qatar’s composed and firm stance in the face of the blockade and continued provocations of the blockading countries. Maturity of the Qatari diplomacy has since gripped global attention, courted international approbation, and most importantly, captured hearts and minds of Qataris into solidarity. A growing reverence for Qatar’s foreign policy and its key figures is unmistakable both domestically and abroad.

A less celebrated side of Qatar’s international role is that of sustainable development. Hundreds of resolutions and decisions are adopted yearly by the General Assembly, the Security Council and the Economic and Social Council of the UN, enacting and promoting sustainable development goals. Overall, the tie-ins between international cooperation and sustainable development are growing more reciprocal and symbiotic. 

This is evinced by the Millennium Declaration, the Johannesburg Declaration and the thousands of bi/multilateral treaties that have followed on from the UN Conference on Environment and Development in 1992. Since then, sustainability and sustainable development have become the watchwords for international bodies, most prominently the European Commission, the World Bank Group, the G-20 and obviously the UN, so much so they established dedicated offshoot organizations. Continuing to reaffirm commitment to the international community, Qatar has lived up to the (arguably) very ambitious agenda of sustainable development set in 2015.

Largely via Qatar Investment Authority (QIA) and Qatar Fund for Development (QFFD), Qatar has assumed the mantle of financiering, especially for the past several years. Qatar generously funds not-for-profit, philanthropic deeds in development assistance as well as investments in sustainable development. 

View of West Bay, Doha

In one year, 2018, QFFD disbursed more than $500m to hundreds of humanitarian and developmental projects in 70 countries across the world; funding natural disaster relief and recovery in the Caribbean, roadbuilding in the Horn of Africa, microfinancing SMEs in the Muslim World, and rehabilitating healthcare facilities in Arab countries, to name a few. 

QIA, on the other hand, ensures sustainable economic prosperity of Qataris for generations to come by investing in sustainable and profitable ventures worldwide. The $10bn pledged for US infrastructure enhancement and the £5bn for British infrastructure are examples of Qatari investments in international sustainable development.

We are yet to see all of these Qatari accomplishments and financial means complemented and popularised byways of active participation and close engagement with international bodies to further promulgate Qatar’s established role in global sustainable development. Young, well-educated Qataris are now more than ever capable of taking part in the sophisticated, pluralistic discourse on climate change, environmental protection, circular economy, wealth equality and social justice; hot sustainability topics that are increasingly gaining steam in international dialogue. In promoting sustainability and sustainable development, Qatari youth have HH Sheikha Moza bint Nasser as the role model to follow, especially with the recent designation of Her Highness as UN Sustainable Development Goals Advocate.

Domestically, international agreements have been coordinated with Qatari laws and regulations. This harmonisation process is best exemplified by the synchronization of the UN 2030 Agenda for Sustainable Development, Qatar National Vision (QNV) 2030 and the resultant quinquennial National Development Strategies. Qatar facilitated the UN Voluntary National Review of the country’s 2030 Agenda for Sustainable Development to acquire international credibility of implementation. Many nations are still lagging in setting and/or implementing sustainable development goals.

Following the onslaught of the blockading countries against Qatar, strong local faculties in sustainable development would call attention to ways the blockade hinders international cooperation intended to foster sustainable development; and they are many. 

The mere act of obstructing transportation to/from Qatar by stifling international transit corridors is condemnable as it violates the General Assembly’s Resolution 69/213 propositioned by the Secretary-General’s High-level Advisory Group on Sustainable Transport.

Qatar is building educational, governmental and diplomatic capabilities to navigate organizational and intergovernmental synergies of sustainable development. And as sustainable development organizations grow more influential in shaping major international accords, frameworks, standards and policies, Qatari representation is essential to preserve our state’s interest. 

Luckily, collective intelligence in Qatar has recognised that reinforcing alliances and partnerships through concerned UN agencies, and other organizations such as IFC and OECD can very much help perpetuate Qatar’s stability amidst the perils of the region.

Whether we are bracing for more seismic shifts in our regional geopolitics, more chasms, or for that matter, expecting rapprochements, sustainable development remains key to continued Qatari prosperity.

Dr Soud Khalifa Al-Thani is Sustainability Director at ASTAD.