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Global tensions
hit investments again in 2023: UN
TLE Desk
Worldwide foreign direct investment fell for a second consecutive year in 2023 amid a global economic slowdown, coupled with swelling trade and geopolitical tensions, the United Nations said Thursday.
Foreign direct investment (FDI) fell by two per cent to $1.3 trillion last year, according to a fresh report from the UN Trade and Development Agency, reports AFP.
But excluding a few exceptions, the report showed a far sharper decline of more than 10 per cent in FDI for the second consecutive year, it cautioned.
UNCTAD said the prospects for FDI remained “challenging” in 2024, but highlighted some positive developments.
It cited the easing of financial conditions and concerted efforts towards investment facilitation, “a prominent feature of national policies and international agreements”.
“We think that 2024 will be better,” UNCTAD chief Rebeca Grynspan told reporters in Geneva.
“There are signs that there will be a modest growth in 2024,” she said.
“It’s a modest growth, but it’s a change of tendency, so we are more optimistic towards 2024.”
Falling direct investment hurts developing countries in particular because it tends to be their largest external source of financing.
Last year, FDI flowed to developing countries fell by seven per cent, to $ 867 billion, UNCTAD said, reflecting an eight per cent decrease to developing countries in Asia. Flows to Africa meanwhile slumped three per cent, to $53 billion.
But UNCTAD highlighted that the continent was attracting “a growing share of global mega projects, with six valued at more than $5 billion”.
Inflows to most parts of Europe and North America were down by 14 per cent and fi ve per cent respectively, the report showed.
The largest greenfield announcement for any country in 2023 was a green hydrogen project in Mauritania, expected to generate $34 billion in investment, the agency said, pointing out that that was “several multiples of the country’s gross domestic product”.
As for foreign direct investment flows to developed countries, they were heavily impacted by the fi nancial transactions of multinational enterprises, UNCTAD said.
This was “partly due to efforts to implement a global minimum tax rate on the profits of these corporations”, it said.
ECONOMY
Is a recession coming? Economists say look at women’s lips 2
How do we know if the economy is in decline? The answer might be on our lips.
Estee Lauder chairman Leonard Lauder created the lipstick index during the economic downturn following September 11, 2001. He noticed that the purchase of cosmetics, lipsticks in particular, tend to be inversely related to the economy because women replace more expensive purchases with small pick-meups.
In fall 2001, US lipstick sales increased by 11%. And back during the Great Depression, cosmetics sales overall increased by 25 % , reports CNN.
In 2020, at the height of the Covid economic downturn, Estee Lauder’s CEO Fabrizio Freda said that the lipstick index had been replaced by a skincare item as customers donned masks and worked from home.
“The lipstick index has been substituted with the moisturizing index,” said Freda. “But the concept of the index is still there.”
Now we may be seeing that phenomenon rear its head once more. Sephora recently announced a record sales year and from consumer research group Circana shows that prestige beauty growth has outpaced mass beauty sales, growing 9% and 2%, respectively in the first quarter of the year.
Of course, the so - called lipstick index is a less technical and more fun measure of economic downturn and isn’t always entirely accurate. But as the free- spending post-pandemic party comes to an end in the US, it’s something worth exploring. Before the Bell spoke with Neela Montgomery, CEO of Overeon (a collective of premium cosmetics brands including BareMinerals, Laura Mercier, and Buxom ) about the outlook for beauty in an uncertain economic climate.
This interview has been edited for length and clarity.
Before the Bell: We’ve been writing a lot at CNN about how Americans are beginning to rein in their spending. Consumers seem to be taking a hit right now. But data shows that more expensive prestige beauty sales are outpacing mass, lower-priced beauty sales. How do you explain that?
Neela Montgomery: Beauty shifted a bit during the Covid times because it became self - care purchase orientated. I do think that’s making it more resilient to broader economic trends. As people are thinking about where to reduce spending, it’s more likely to be in fashion and very high - priced discretionary goods than beauty. What’s very interesting about beauty and one of the things I really like about the industry is that we continue to innovate, it’s fast-paced and there are new trends all the time for people to keep up with. So Bare Minerals Lip Gloss Balm is a huge new product for us…it’s like a micro - moment of pleasure that people can treat themselves to. I think that is still very appealing and seems relatively easy to access for $24. So I think that is why it’s more resilient. It’s more about the comparative nature of prices and what customers are using products for.
ECONOMY
Do you think the industry has been just resilient or have you seen a boost?
I think if you look at the broader prestige market, it’s been enormously resilient across all demographics including age and income. Skincare drove a lot of that for a while and now fragrance and makeup are dominating again. The category remains way, way higher than one would expect.
It’s a considered purchase, but it’s not so discretionary that it’s unobtainable.
You mentioned that trends move quickly in the beauty industry, are TikTok and other social platforms driving sales and have you adjusted your products based on influencer trends?
Well, Laura Mercier is very much about a fl awless face and what makes you unique makes you beautiful so we recognise that a trend like glassy skin is not for that brand. But the latte look could be, so we think about it more in terms of palette trends. For example, we’re about to launch a caviar matte lipstick, and matte lipstick has definitely made a huge comeback –it’s also super popular in Asia, which is a very high growth part of our business.
I think what’s fascinating is how informed people are about ingredients – whether it’s a sesame seed extract in the lip gloss, or
just being educated around some of these unique natural ingredients that have, probably not the same e ffi cacy, but have e ffi cacy as well compared to more more obvious things like retinol.
So we think about overall trends and then TikTok trends specifically where they’re relevant.
We can’t respond to every micro trend, we’re not in that kind of development cycle, but if it relates to our brand, how we then go to market and talk about it very much resonates on TikTok.
Clean has become a real buzzword in this industry, but this whole idea of no - tax ( anti - botox ) , remains a really important thing… The market is bifurcating between this very authentic, real look and people who are getting more cosmetic work done.
What we see is a need for more of these kinds of efficacious products for people who don’t want to go down the cosmetic procedure route or injectables route.
And then we continue to see that sort of clean girl with a pop of colour look. So you know, we have this sort of red lip…We continue to see that grow and expand.
I think what’s fascinating is how informed people are about ingredients – whether it’s a sesame seed extract in the lip gloss, or using sea buckthorn or just being educated around some of these unique natural ingredients that have, probably not the same
The Interplay of Labor, Economy, and Inflation
In today’s interconnected world, the relationship between labor, the economy, and in fl ation is clearer than ever. This dynamic is crucial for everyone, from policymakers to businesses and workers, as it shapes economies globally.
The labor market is the backbone of any economy. It drives productivity and growth but can also experience ups and downs that affect the broader economy.
When the job market is tight and there are more job openings than workers, wages often rise as companies compete for talent. This can lead to higher inflation. On the flip side, high unemployment can keep wages low, reducing consumer spending and slowing economic growth.
However, growth rates differ across regions. Emerging economies often see rapid growth due to industrialisation and urbanisation, while developed economies might experience steady, moderate growth.
Inflation measures how much prices for goods and services rise.
While moderate inflation indicates a healthy economy, too much in fl ation can erode purchasing power and savings. Central banks try to manage this by adjusting interest rates and other policies.
Today’s global economy faces unique inflationary pressures. Supply chain disruptions, rising energy prices, and post-pandemic
demand have driven up inflation rates worldwide.
In developed economies, both supply issues and large fiscal stimulus measures have contributed to inflation. In emerging markets, in fl ation is often driven by volatile commodity prices and currency depreciation.
The interplay of labor, the economy, and inflation is complex but crucial.
In the United States, low unemployment and high consumer demand have led to wage growth, contributing to inflation.
The Federal Reserve aims to control this by raising interest rates, hoping to curb in fl ation without harming economic growth.
The European Central Bank faces a di ff erent set of challenges. It must balance promoting growth in weaker economies while preventing overheating in stronger ones.
Meanwhile, central banks in Brazil and India are dealing with inflation driven largely by external factors like commodity prices and currency fl uctuations. E ff ective policies require a deep understanding of these dynamics.
Policymakers must balance fostering employment and controlling inflation.
Often, targeted fiscal policies can support monetary measures.
For example, investing in infrastructure and education can
and resilience in the labor market, helping to ease inflationary pressures in the long term.
Global cooperation is also vital. International organisations like the International Monetary Fund (IMF) and the World Bank play a crucial role in providing support and guidance, especially for developing countries facing high inflation and unemployment.
The relationship between labor, the economy, and inflation is fundamental to global economic health.
As the world navigates recovery from the pandemic and ongoing geopolitical uncertainties, understanding this relationship is more important than ever.
Policymakers, businesses, and workers must stay adaptable and informed, working towards strategies that promote sustainable growth and stability. By doing so, they can help ensure a prosperous future in an ever- evolving global economy.
— Written by Md Tarek Hossain
CLIMATE 5
Climate Change Awareness and Environmental Sustainability
An Initiative by the Economics Students Society of Bangladesh's #Ecovibes Wing
The pressing issue of climate change and environmental sustainability has garnered global attention over the past few decades.
The Economics Students Society of Bangladesh ( ESSB ) , particularly through its #Ecovibes wing, is actively contributing to raising awareness and promoting sustainable practices.
This article explores the importance of climate change awareness and environmental sustainability, highlighting ESSB's initiatives and their impact.
Climate change refers to long - term shifts in temperature and weather patterns, primarily caused by human activities such as burning fossil fuels, deforestation, and industrial processes. These changes lead to
Rising Temperatures: Increased global temperatures result in heatwaves, altering ecosystems and a ff ecting human health.
Melting Ice Caps and Rising Sea Levels: The melting of polar ice caps contributes to rising sea levels, threatening coastal communities and ecosystems.
Extreme Weather Events: More frequent and severe weather events like hurricanes, droughts, and floods cause widespread damage and displacement.
Biodiversity Loss: Changing climates disrupt habitats, leading to the extinction of various plant and animal species.
Environmental sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs.
It involves managing resources responsibly, reducing pollution, and preserving natural habitats.
Key principles include:
Resource Efficiency: Using resources more e ffi ciently to minimise waste and reduce environmental impact.
Renewable Energy: Transitioning from fossil fuels to renewable energy sources like solar, wind, and hydro power.
Conservation Eff orts: Protecting and restoring natural ecosystems to maintain biodiversity and ecological balance.
Sustainable Development: Promoting economic growth that is inclusive and environmentally sustainable.
The #Ecovibes wing of the ESSB is dedicated to fostering environmental awareness and advocating for sustainable practices among students and the wider community.
Their initiatives include:
Educational Campaigns: Organising seminars, workshops, and webinars on climate change, sustainability, and green technologies to educate students and community members.
Tree Planting Drives: Conducting tree planting events to combat deforestation and promote green spaces within urban areas.
Research Projects: Encouraging students to engage in research on environmental economics, exploring the economic impacts of climate change and sustainability strategies.
Community Outreach: Partnering with local organizations to implement sustainable practices in communities, such as waste management programs and clean energy projects.
Awareness Events: Hosting events like Earth Day celebrations, environmental film screenings, and eco-friendly product fairs to raise awareness and promote sustainable lifestyles.
ESSB's #Ecovibes initiatives have made significant strides in promoting climate change awareness and environmental sustainability in Bangladesh.
By engaging students and the community, they are fostering a culture of responsibility and proactive action towards environmental issues.
Future goals of the #Ecovibes wing include:
Expanding Outreach: Increasing the reach of educational campaigns to more schools and universities across Bangladesh.
Policy Advocacy: Collaborating with policymakers to influence environmental regulations and promote sustainable development policies.
Innovation and Technology: Supporting innovation in green technologies and sustainable practices through student - led projects and competitions.
Global Collaboration: Building partnerships with international organizations to share knowledge and resources for tackling global environmental challenges.
Climate change and environmental sustainability are critical issues that require immediate attention and collective action.
The Economics Students Society of Bangladesh's #Ecovibes wing is playing a pivotal role in raising awareness and promoting sustainable practices.
Through education, community engagement, and advocacy, they are contributing to a greener, more sustainable future for Bangladesh and the world.
This article is a product of the colaborative efforts of the Economics Students Society of Bangladesh's #Ecovibes wing, showcasing their commitment to environmental sustainability and climate change awareness.
Why we need a world without borders
So many of the divisions between countries are imaginary, decided by on agreement or conflict, writes Steve Taylor
There are countless di ff erent species on the surface of this planet. One of these is the human race, which has over seven billion members. In one sense, there are no nations, just groups of humans inhabiting different areas of the planet. In some cases, there are natural borders formed by sea or mountains, but often borders between nations are simply abstractions, imaginary boundaries established by agreement or conflict.
Rusty Schweickart, a member of the 1969 Apollo 9 space mission, explained how when he looked at the Earth from space, he experienced a profound shift in perspective.
Like most of us, he was brought up to think in terms of countries with borders and different nationalities, but seeing the world from this new angle changed his view. He felt “part of everyone and everything”. As he described it:
“You look down there and you can’t imagine how many borders and boundaries you cross, again and again and again, and you don’t even see them.”
Schweickart’s perspective reminds us that we belong to the Earth rather than to a nation, and to a species rather than a nationality. And although we might feel distinct and different, we all have a common source.
Our species originally developed in eastern Africa around 200,000 years ago and migrated out into the rest of the world in a series of waves.
If there was an ancestry website that could trace our lineage back to the very beginning, we would find that we all have the same great-great (followed by many other “greats”) grandparents.
How then do we explain nationalism? Why do humans separate themselves into groups and take on different national identities?
Maybe di ff erent groups are helpful in terms of organisation, but that doesn’t explain why we feel different. Or why different nations compete and fight with one another.
INDEPENDENT
The psychological theory of “terror management” offers one clue. This theory, which has been validated by many studies, shows that when people are made to feel insecure and anxious, they tend to become more concerned with nationalism, status and success.
We seem to have an impulse to cling to labels of identity to defend ourselves against insecurity. There has, however, been criticism of the theory by some psychologists who believe it overlooks wider factors that contribute to human behaviour.
That said, the theory could go some way to help explain why nationalism grows in times of crisis and uncertainty. Poverty and economic instability often lead to increased nationalism and to ethnic conflict.
An increased sense of insecurity brings a stronger need for conceptual labels to strengthen our sense of identity. We also feel the impulse to gain security through the feeling of belonging to a group with shared beliefs and conventions.
On this basis then it’s likely that people who feel the strongest sense of separation and the highest levels of insecurity and anxiety, are the most prone to nationalism, racism and to fundamentalist religion…
Why we need trans-nationalism
In my view, then, all nationalistic enterprises – such as “America First” or Brexit – are highly problematic, as they are based on anxiety and insecurity, so inevitably create discord and division.
And since nationalism contravenes the essential reality of human nature and human origins, such enterprises always turn out to be temporary. It’s impossible to override the fundamental interconnectedness of the human race. At some point, it always reasserts itself…
Ultimately, nationalism is a psychological aberration. We owe it our ancestors and to our descendants – and to the Earth itself – to move beyond it.
Reformist Masoud Pezeshkian elected Iran's president
Reformist Masoud Pezeshkian has been elected as Iran's new president, beating his hardline conservative rival Saeed Jalili.
The vote was declared in Dr Pezeshkian's favour after he secured 53.3 % of the more than 30 million votes counted. Mr Jalili polled at 44.3%
The run-off came after no candidate secured a majority in the first round of the election on 28 June, which saw a historically low voter turnout of 40%.
The election was called after Iran’s previous president Ebrahim Raisi was killed in a helicopter crash in May, in which seven others also died.
The leaders of China, India and Russia have all congratulated Dr Pezeshkian on his victory.
Even before the final results were declared by Iran's interior ministry, Dr Pezeshkian's supporters had taken to the streets in Tehran and a number of other cities to celebrate.
Videos posted on social media showed mostly young people dancing and waving the signature green flag of his campaign, while passing cars sounded their horns.
Dr Pezeshkian, a 71-year-old heart surgeon and member of the Iranian parliament, is critical of Iran’s notorious morality police and caused a stir after promising “unity and cohesion”, as well as an end to Iran's “isolation” from the world.
Keir Starmer
confirmed as Britain's new prime minister
The first step for Keir Starmer is done as his Labour Party has been swept into government.
But what did he promise and what policies can we expect from him in the coming weeks and months?
High on Labour’s list of things to fix will be cutting waiting times for hospital treatment, which have been on the increase since the Conservatives came into power 14 years ago and skyrocketed during the pandemic.
Labour pledged 40,000 more appointments a week in the cash - strapped National Health Service (NHS), but how it will be paid for is a bit vague. The party’s manifesto says it will be done by “cracking down on tax avoidance” and other loopholes. reports CBC.
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