A UN agency launched a scathing attack on Britain over its foreign aid budget cuts, warning that women and girls around the world will suffer as a result.
The UN Population Fund said the UK planned to cut family planning aid from £154 million ($214m) to £23m this year – a drop of 85 per cent.
Details of the cut emerged came after other programmes were identified as being in the firing line for funding cuts after Britain slashed its foreign aid budget.
The agency, UNFPA, supplies contraceptives and maternal health medicine for millions of women in some of the world’s poorest countries, trains maternal health workers, and promotes efforts to stop female genital mutilation and child marriage.
Natalia Kanem, UNFPA executive director, accused Britain of “stepping away from its commitments at a time when inequalities are deepening and international solidarity is needed more than ever”.
“These cuts will be devastating for women and girls and their families across the world,” she said.
"With the now-withdrawn £130m, the UNFPA Supplies Partnership would have helped prevent around 250,000 maternal and child deaths, 14.6 million unintended pregnancies and 4.3 million unsafe abortions.”
An additional £12m will be cut from UNFPA's core operating funds.
The agency acknowledged "the challenging situation facing many donor governments", but said it "deeply regrets the decision of our longstanding partner".
"The truth is that when funding stops, women and girls suffer, especially the poor, those living in remote, underserved communities and those living through humanitarian crises," it said.
The UK this year announced it would slash its overall foreign aid budget from 0.7 per cent to 0.5 per cent of its national income, a reduction of about £4 billion.
The programmes affected by the decision are now becoming apparent.
On Wednesday, it was reported the UK planned to slash funding for international clean water and sanitation projects by 80 per cent.
On Tuesday, Liz Sugg – a former Foreign Office minister who resigned in protest over the cuts – challenged the government to confirm which programmes would be cut.
She said the government planned to cut the overseas budget for girls' education by more than 40 per cent.
The former minister also claimed that Britain planned to close its Women’s Integrated Sexual Health programme and cut funding to the Reproductive Health Supplies Coalition by up to 80 per cent.
Foreign Secretary Dominic Raab said he did not recognise the figures, but admitted no area was immune to cuts.
Responding to the UN statement on Thursday, Ms Sugg said Britain’s withdrawn financial support to the women’s health organisation was a “double hit on the world's poorest”.
"The cuts which we're seeing to the aid budget are huge," she told the BBC Radio 4 Today programme on Thursday.
“This is money the UK committed to in the UN chamber, signed an agreement and now we’re walking away from it – it’s pretty unheard of.”
She said the UK was traditionally a strong advocate for women and girls around the world.
"(The cut) means millions of women will not have access to contraception and sadly that will mean many unwanted pregnancies and unsafe abortions," she said.
Former UK prime minister Tony Blair called on the leaders of the wealthy G7 collective of wealthy nations to redirect aid budgets to help poorer nations purchase Covid-19 vaccines.
Vaccines Minister Nadhim Zahawi emphasised the UK’s commitment to the World Health Organisation’s Covax initiative that helps inoculate the world’s poorest populations, with the UK donating £548m to the scheme.
“We are doing a hell of a lot to make sure we help the rest of the world,” he told Sky News.
The Foreign Office said the aid cuts were only temporary and put in place because of the "seismic effect” of Covid-19 on the UK economy.
"We are working through what this means for individual programmes. Decisions will be announced in due course,” it said.
"We will still spend more than £10bn this year to fight poverty, tackle climate change and improve global health."
Official data shows emergency pandemic support measures have sent Britain's annual borrowing rocketing to the highest level since the Second World War.
More on foreign aid
UK vows to reverse cut in international aid when economy recovers from pandemic
World’s poorest countries braced for funding cuts ahead of UK aid budget announcement
UK’s foreign aid cuts likely to hinder vaccination and climate change efforts
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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
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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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Formula 2 qualifying, 7pm
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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