Ukraine Reconstruction Costs “Hopefully” to Rise

The costs of rebuilding Ukraine and its economy are already projected to be 2.6 times greater than the country’s entire 2022 GDP. But in some ways, Ukraine and its allies should hope the costs are even higher.

The World Bank’s most recent estimates for reconstruction and recovery in Ukraine have grown to US $411 billion.

China Still Gets “Developing Nation” Preferential Treatment

The People’s Republic of China is the world’s second largest economy, ranks in the top five nations for trade and foreign investment, has the world’s largest number of middle-class consumers, and provides an estimated $3 billion per year in foreign aid expenditures. But the United Nations still formally treats it as a developing economy.

Much of the World Facing Debt Distress

60% of low-income countries, and at least 25% of middle-income countries, are in debt distress or at high risk of debt distress.

In an essay published shortly before he left his role as World Bank president, David Malpass warned that “[e]xcessive government debt raises doubts about whether the private economy can produce enough output and profit to carry the burden….” He wrote, “Government debt levels, both current and projected, are an order of magnitude larger than in previous crises, undercutting growth.”

Syria and the Arab League

In the Assad-led war in Syria, more than 300,000 civilians have been killed, half the population has been displaced, chemical weapons have reportedly been used over 330 times, and 14 million people are in desperate need of humanitarian assistance. Despite that, in May, the Arab League reinstated Syria’s membership.