🌍 The IMF and World Bank convene in Morocco

Hi there Intriguer. World records, they are a-tumblin’: Kenya’s Kelvin Kiptum just shattered the men’s marathon world record by 30 seconds; and Michael Jordan just won the 50th World Pumpkin Weigh-off by 21kg (the pumpkin is named Michael Jordan).

Today’s briefing is a 5 min read:

• 🏦 The IMF and World Bank meet in Morocco.

• 🚛 Cargo backs up at the US-Mexico border.

• ➕ Plus: Another European pipeline damaged, how the papers are covering Russia’s attempt to regain a seat on the UN Human Rights Council, and an island is reborn.

⏱️ Around the world in sixty seconds

1. 🇰🇷 South Korea: Korean tech firms Samsung and SK Hynix have received a waiver from Washington to supply their factories in China with US chip equipment. The firms said this “will contribute to the stabilization of the global semiconductor supply chain”.

2. 🇬🇧 UK: Several European nations (eg, the UK, Germany, France, and Switzerland) experienced their hottest September on record. This unseasonable Autumn heatwave is expected to last into October.

3. 🇦🇺 Australia: Canberra has announced it’ll re-join the UN Green Climate Fund, five years after the previous administration withdrew citing governance issues. The fund uses donations from developed countries to finance climate projects in developing countries.

4. 🇪🇨 Ecuador: Six men arrested in connection with the assassination of presidential candidate Fernando Villavicencio this past August were murdered in prison on Friday. Their deaths prompted President Lasso to remove and investigate several senior security officials.

5. 🇱🇷 Liberia: Counting is underway after elections yesterday (Tuesday), with President George Weah seeking a second term. Voting in Africa’s oldest independent republic faced unique challenges, such as the capsizing of a canoe carrying ballots to remote communities.

🏦 Global | Finance & development

World’s lenders of last resort meet in Morocco

The World Bank and the International Monetary Fund (IMF) are holding their annual meetings in Morocco this week (9-15 October).

It’s the first time they’ve held the annual gathering in Africa since 1973, and the choice of location is timely.

For years, the two Washington-based organisations have faced criticism for being unrepresentative and unresponsive. So they’ve been pushing to:

• 🗳️ Re-balance member representation and vote share 

• 🌱 Reorient their lending to address issues like climate change, and

• 🧵 Mobilise more funding, to more places, with fewer strings.

That last point is key.

IMF and World Bank support often comes with a requirement for the recipient country to reform its economy; the idea here is to address the root causes that led the country to seek financial assistance in the first place.

In practice, this can often mean painful tax hikes or spending cuts. So the IMF and World Bank are pitching ways to stretch their balance sheets through technical tweaks and more support from wealthy members.

But major progress would likely require stretched governments to pony up more cash, and spooked governments to cede more voting power.

And it’s hard to see that happening in Marrakesh this week.

Intrigue’s take: The World Bank has kept its AAA+ credit rating in part because of the rules it attaches to its loans. And that credit rating convinces its shareholders that the Bank is a good place to stash their cash.

So if lenders like the World Bank and the IMF sacrifice stewardship for expediency, it may come back to bite them. But given the scale of the challenges the world faces, they may not have much of a choice.

Also worth noting:

• Both lenders will likely announce a new board seat for Africa this week.

• Morocco was due to host in 2021, but this was twice postponed due to COVID. The meetings were almost postponed a third time due to the earthquake in Morocco that took 3,000 lives last month.

📰 How newspapers covered…

Russia’s efforts to regain a UN Human Rights Council seat

Russia was ultimately unsuccessful. The UN vote yesterday (Tuesday) saw 15 new countries elected to serve for three years from January.

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Updates on Israel and Gaza

Israel’s bombing in Gaza. Israel has continued to bombard Gaza, targeting what some officials have referred to as “terror nests”. The buildings hit so far have included schools, mosques, and hospitals. Health authorities in Gaza say the death toll there has passed 830 since the Hamas attacks on Israel, where authorities have now reported 1,200 dead. (New York Times)

An unprecedented mobilisation. Israel’s government has called up a further 60,000 reservists, bringing the total number to 360,000. That’s the most reservists mobilised since the country’s founding, and raises implications for Israel’s economy should the conflict drag on. (The Washington Post)

International concern over Israel’s siege. The EU’s top diplomat Josep Borrell has said “Israel has the right to defend (itself) but… some decisions are contrary to international law.” UN chief Antonio Guterres has recognised Israel’s “legitimate security concerns”, while saying he’s “deeply distressed” by the siege, and referring to the “long-standing conflict, with a 56-year long occupation”. (AP)

President Biden has called Hamas’s attacks “pure unadulterated evil” after talking with Israeli leader Benjamin Netanyahu. Secretary of State Blinken leaves for Israel today (Wednesday) to discuss, among other things, the fate of the “20 or more” Americans still missing and presumed taken hostage by Hamas. (CNN)

Twitter. Iran and Israel, which have no formal diplomatic ties, traded words via Twitter/X last night.

🇲🇽 Mexico | Trade

Mexico seeks an end to US cargo backlog

Mexico has issued a statement “respectfully urging” the US to “mediate with the Texas Government to stop the exhaustive inspections of cargo trucks”.

What’s going on?

Thousands of undocumented migrants are now crossing the border each day. So US authorities suspended certain cargo processing operations last month, freeing up agents to help manage the increased noncitizen arrivals.

In parallel, the Texas governor re-introduced state checks for commercial cargo shipments, citing a need to secure the border and curb smuggling.

Combined, this has impacted one of the world’s busiest trade routes: Mexico’s freight industry says (🇲🇽) there’s a backlog of 19,000 trucks at the border carrying $1.9B in goods.

Intrigue’s take: In a world where nearshoring is offered as a solution for overstretched and vulnerable global supply chains, the US-Mexico border is a reminder that trade isn’t always straightforward, even among neighbours. And federal governments aren’t the only ones calling the shots.

Also worth noting:

• After Texas introduced similar vehicle checks last year, Mexican truckers staged protests blocking key crossings for days.

• Mexico’s largest rail operator temporarily suspended 60 US-bound routes for the first time last month, citing an increase in people seeking to reach the US via the company’s freight trains.

• The Bridge of the Americas, a major US-Mexico border crossing in Texas, partially resumed cargo processing yesterday (Tuesday).

➕ Extra Intrigue

Once overrun with rats, this lush island is now a protected area

Redonda was once a haven for seabirds and other wildlife. But people descended upon the Caribbean island in the 19th century to mine for guano (bird excrement used for gunpowder and fertiliser) and brought with them non-native animals like goats and rats.

The humans eventually left, but the invasive species stayed and destroyed Redonda, leaving it barren and completely overrun by rodents. So in 2016, conservationists decided to restore the tiny island to its former glory.

“We just removed the species that were not supposed to be there and within months we saw the vegetation growing back — the island rebounding,” said one of the conservationists. “The island transformed right in front of our eyes.”

And that transformation has paid off: Redonda and the waters surrounding it were recently designated as an official protected area.

🗳️ Poll time!

💬 Quote of the day

Finnish President Sauli Niinistö said yesterday (Tuesday) that damage to key underwater gas and data infrastructure between NATO members Estonia and Finland was “likely… caused by external activity.” Finnish media is reporting (🇫🇮) that Helsinki officials suspect Russia as the culprit.

Yesterday’s poll: Which of the following industries do you think is due for an IPO golden era?

🟨🟨🟨🟨⬜️⬜️ 🤖 AI (30%)

🟩🟩🟩🟩🟩🟩 🌬️ Renewable energy (38%)

🟨⬜️⬜️⬜️⬜️⬜️ 🩺 Healthcare (6%)

🟨⬜️⬜️⬜️⬜️⬜️ 🧪 Biotech (13%)

🟨⬜️⬜️⬜️⬜️⬜️ 🌾 Agriculture (9%)

⬜️⬜️⬜️⬜️⬜️⬜️ ✍️ Other (write in!) (4%)

Your two cents:

• 🌬️ M: “For pure IPO potential, renewable opportunities seem far less fully exploited and frankly have the potential to power the AI boom, so their growth is linked.”

• ✍️ B.F.C: ”Defense Technology. Engineering brilliance shouldn’t be wasted on making Metaverse poop emojis.”

• 🧪 D.C: “Is “Longevity industry” part of Biotech or Healthcare?”