WFP chief David Beasley photographed with the C-17 shortly after it arrived in Accra, Ghana. Courtesy WFP
WFP chief David Beasley photographed with the C-17 shortly after it arrived in Accra, Ghana. Courtesy WFP
WFP chief David Beasley photographed with the C-17 shortly after it arrived in Accra, Ghana. Courtesy WFP
WFP chief David Beasley photographed with the C-17 shortly after it arrived in Accra, Ghana. Courtesy WFP

Stark warning of dangers of Syrian famine from UN food programme chief


Damien McElroy
  • English
  • Arabic

Syria is in danger of slipping into famine as the country’s economic collapse, and that of neighbouring Lebanon, pushes food supply systems to the brink, the United Nations has warned.

David Beasley, the head of the UN's World Food Programme, issued the wake-up call in an interview with The National.

Figures compiled from the WFP’s extensive operations in Syria indicate that food prices are the highest on record after a collapse in the Syrian pound. Prices in the WFP’s food basket increased by 16 per cent in the latest monthly tally.

Mr Beasley said that an already bleak outlook in Syria for 2020 after a decade of war was rapidly worsening.

“If Syria continues to deteriorate and the availability of cash, availability of food and supply chain disruption on a country that’s already devastated by 10 years of war, famine could very well be knocking on that door,” Mr Beasley said.

The WFP provides food assistance for four million Syrians, as well as 1.6m compatriots displaced in neighbouring countries. The Syrians with remaining savings have been hit hard by the Lebanese banking crisis. With prices spiking, the WFP is shifting resources out of programmes that provided cash to households to pay for food and is now procuring supplies directly.

“If we send cash in, they don’t have anything to buy, so we are now having to convert cash to food,” he said. “Syria is deteriorating in a pretty serious way because the Lebanese economy has collapsed as has the banking system

“Those two economies are so linked by tradition and history," he added. "That has just had a devastating impact and now we’ve got real issues of food security in Lebanon, real serious.”

  • A satellite image that show an Idlib Displacement Camp B taken on September 27, 2017. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp B taken on September 27, 2017. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp B taken on September 26, 2018. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp B taken on September 26, 2018. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp B taken on December 2, 2019. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp B taken on December 2, 2019. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on September 27, 2017. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on September 27, 2017. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on September 26, 2018. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on September 26, 2018. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on December 2, 2019. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on December 2, 2019. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on February 26, 2020. Courtesy Maxar Technologies
    A satellite image that show an Idlib Displacement Camp A taken on February 26, 2020. Courtesy Maxar Technologies
  • A satellite image that show an Idlib Displacement Camp A taken on September 27, 2017. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on September 27, 2017. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on September 26, 2018. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on September 26, 2018. Courtesy Digital Globe
  • A satellite image that show an Idlib Displacement Camp A taken on December 2, 2019. Courtesy Digital Globe
    A satellite image that show an Idlib Displacement Camp A taken on December 2, 2019. Courtesy Digital Globe

Mr Beasley became ill with Covid-19 as the pandemic first swept the globe. Recovered, he now spends his time on the phone or in meetings in Congress in Washington, DC, trying to persuade governments to push his agency’s annual funding above $10 billion (Dh36.7bn) this year, a substantial bump from 2019's $8.3bn. The need for increased resources is vast with not only the coronavirus-induced global shutdown but the threat of a locust plague and the ravages of climate change.

“Everything is at stake but month by month it’s all hands on deck. It’s not Chicken Little here saying the sky is falling - it really is falling,” he said.

“I was saying before Covid that the year 2020 was going to be the worst humanitarian crisis since World War II.

“Then desert locusts hit, then Covid hit and Covid has done nothing but exponentially exacerbate a crisis situation.”

Without the extra $2bn targeted, Mr Beasley’s concern is that there could be further shutdown or interruption of the global food supply systems. He is pleading with governments to keep farmers planting seeds and harvesting to ensure there is enough to eat.

The number of vulnerable countries is rising. “We’re looking at a remote possibility that 36 countries could face famine,” he said. “Over 10 countries right now that have over a million people each are already on the brink, so we are right at that line.”

The WFP oversees the logistical support for all UN agencies and so is at the heart of the body’s mobilisation in response to the pandemic.

Mr Beasley said it was a joke with some truth that his charter flights were the biggest airline network still operating at the height of the crisis. The WFP works from eight hubs around the world, including its UAE centre.

He spoke of his friendship with Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, as a reliable supporter of the WFP. After a conversation between the two men early in the pandemic, the UAE provided three dedicated transport aircraft to support efforts to move supplies out of its hub, including a C17 Globemaster.

Mr Beasley greeted the C17 landing in Ghana with supplies for a field hospital that was then built a few days after the delivery.

“I said I've got to move more supplies and he didn’t blink an eye; he said you got it,” Mr Beasley recalled.

“He’s genuinely concerned that we have the access we need to help the victims.”

With more than 100 planes ready to carry 10,000 metric tonnes of supplies to those in need, Mr Beasley fears that failure to reach funding goals could interrupt his efforts. He waves a phone as he describes his constant lobbying efforts and the troubleshooting he is doing to keep borders open.

One of the harshest consequences of the lockdown is the impact on school-based meals programmes for children. At the peak of the restrictions there were 1.7bn children out of school globally.

The WFP has introduced distribution programmes in a number of countries for pupils, conscious that for many children that may be their only meal of the day.

“Where the schools are not open we are repurposing a lot of the programmes to move food rations to the schoolchildren who are not in school right now,” he added, speaking by video call from Washington.

“We are doing a lot of altering right now in a lot of different ways.”

After a 20-fold increase in the land area threatened by locusts, the agency is watching nervously where the plague will go next. “Just when you thought you had enough plagues and storms now comes the desert locusts. This is going to wreak havoc,” Mr Beasley said.

Along with the combined effects of price spikes (there was a 19 per cent increase in March in Yemen, where the WFP feeds nearly 13m people) and projected 20 per cent drop in global remittances, there is expected to be near doubling of those deemed to be in an acutely food insecure situation. “They’re not just going to bed hungry, they are literally on the brink of starvation,” he said.

WFP figures project that the number could rise to 260m from 135m. The current figure has risen from 85m just five years ago.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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