Connect with us

Published

on

The story we’re currently seeing unfolding in Israel and Gaza at present doesn’t seem to have much to do with economics. It’s about murders, terrorism and missile attacks.

But the economics lurks behind the scenes. It can’t explain all of what’s happening in the Middle East. It certainly can’t justify the horrendous attacks on Israel on 7 October – the worst massacre of Jewish people since the Holocaust.

Nor can it explain the intensity of the Israeli response, which has, according to Palestinian representatives, claimed more lives than were lost in the Hamas attack.

But, alongside religion, history, democracy – and the lack of it – economics is nonetheless an important part of the background story to the instability in this region.

Trustworthy data on the Palestinian Territories is hard to come by, but earlier today UNCTAD, the economic wing of the United Nations, published its annual stock-take of the Palestinian economy – perhaps the most reliable assessment of the situation on the ground. And that situation is stark.

Chart from Ed Conway, Sky's Economics & Data Editor, on the economics of the Palestinian territories.

It shows that as of last year, in other words before the recent attacks, the economy of Gaza was, by some measures, the most benighted in the world.

Gross domestic product per capita – the broadest measure of living standards – was a whopping 46% below its 1994 levels.

More on Gaza

In other words, in the space of a generation, even as most other countries around the world saw their living standards rise sharply, Gaza’s people have become dramatically poorer.

What’s particularly striking when you look through the data is the divergence between Gaza and the West Bank, the other main part of the Palestinian Territories.

The two regions’ economies had roughly similar GDP per capita up until around 2007, when Hamas seized control of the Gaza Strip.

Chart from Ed Conway, Sky's Economics & Data Editor, on the economics of the Palestinian territories.

But look at what happened next. Economic growth in the West Bank meant that its economy is now considerably bigger and more prosperous than its 2007 levels.

The Gaza Strip, meanwhile, has seen its levels of prosperity crumple in a fashion rarely seen elsewhere in the world.

Chart from Ed Conway, Sky's Economics & Data Editor, on the economics of the Palestinian territories.

It’s a similar story if you look at unemployment rates in each of the regions: while they were relatively close up until 2007 (albeit that the Gaza jobless level was always a few percentage points above the West Bank level) in the post-Hamas period, the two lines have diverged dramatically.

The jobs market in the West Bank is (or was, as of 2022) tough. The jobs market in Gaza was hopeless.

Chart from Ed Conway, Sky's Economics & Data Editor, on the economics of the Palestinian territories.

Compare the Gaza Strip to other countries and you see just how much of an outlier it is.

While the unemployment rate in Israel is 3.5%, the comparable rate in the Palestinian Territories is 24% and the rate in the Gaza Strip is at 45%.

This is higher than any other country in the world – and note that the number is significantly higher for women and for young people.

There are plenty of explanations for this divergence. After Hamas took control of Gaza, Israel imposed a series of restrictions on the flow of people and trade in and out of the region.

The border is heavily policed. Entry and exit by air and sea is banned and there are only two crossing points towards the West Bank and East Jerusalem.

The majority of residents have been “locked in” for years, making it more like a prison than a fully functioning state.

Chart from Ed Conway, Sky's Economics & Data Editor, on the economics of the Palestinian territories.

Look at this chart of exports from Gaza and the West Bank and you get a sense of what this means in practice.

While the West Bank (and for that matter most other economies) have been able to grow their exports each year, as new businesses seek out opportunities to trade with Israel (the trade mostly goes to Israel), Gaza’s exports have essentially flatlined.

Of course, this does not cover the black market, but it’s the best picture we have available.

Israeli authorities say these restrictions are an essential part of policing Hamas and preventing terrorist activity. Trade is monitored and controlled to prevent weapons coming in and leaving.

That goes, too, even for items like fertiliser and steel tubes, since they could be used to make missiles. And they have more than half a point: Hamas social media accounts have gleefully boasted about how productive its home-made ammunition factories have been – despite these restrictions.

Please use Chrome browser for a more accessible video player

Reality of Palestinians in Gaza City

These restrictions are not the only explanation for the collapse in Gaza’s economy: corruption is rife throughout the territory, with the upshot that much of what enters the country for the purpose of helping civilians is sometimes seized by Hamas leaders.

It is a sorry story, and the upshot is that Gaza has been a failing economy for many years, with levels of deprivation and poverty which have mounted to world-leading levels.

None of the above can explain, let alone justify, the attacks of October 7. In a parallel universe, Gaza could have been blessed with leadership which would turn the lines in the chart around – though that would also have been reliant on Israel lifting its various restrictions.

But numbers like these tend to make people feel desperate.

Gaza was already desperately poor before Hamas won its election and seized power. It has become significantly poorer, and significantly more desperate, in the years since.

Continue Reading

World

Hurricane Melissa: What we know about the powerful storm approaching Jamaica

Published

on

By

Hurricane Melissa: What we know about the powerful storm approaching Jamaica

Hurricane Melissa, the world’s most powerful hurricane of the year so far, is closing in on Jamaica, with forecasters warning it could have a “catastrophic” impact.

The Category 5 hurricane has reached speeds of 175mph, already making it one of the strongest ever in the Atlantic basin.

A storm of Category 4 or higher has not hit Jamaica since records began 174 years ago.

It is expected to make landfall in the coming hours, continuing towards eastern Cuba and across the southeastern or central Bahamas.

Here’s what we know so far.

How bad could it be?

“Catastrophic” flash flooding and numerous landslides are likely when the hurricane hits, according to the US National Hurricane Centre, which warned of “total structural failure”.

Parts of the Caribbean island could see rainfall of up to 40 inches and it could cause a “life-threatening” storm surge on Jamaica’s southern coast, peaking around 13ft above ground level, the US centre said.

The storm is expected to be particularly bad along the coast of Kingston, which is home to critical infrastructure, including Jamaica’s main international airport and power plants.

Hurricane Melissa moves towards Jamaica and Cuba. Pic: CIRA/NOAA via Reuters
Image:
Hurricane Melissa moves towards Jamaica and Cuba. Pic: CIRA/NOAA via Reuters

Live updates as hurricane approaches

Jamaica’s prime minister Andrew Holness said he expected “major damage to our road infrastructure, bridges, drains and possibly some damage to ports and airports” and warned it would take “far more resources than Jamaica has to recover”.

There are 850 shelters across the island, he added, enough for more than 20,000 people. Jamaica has a population of roughly 2.8 million.

All of Jamaica is expected to experience hurricane-force winds, heavy rainfall and flooding.

Has anyone died because of the hurricane?

Officials have said the storm is already responsible for at least seven deaths in the Caribbean, including three in Jamaica, three in Haiti and one in the Dominican Republic, where another person remains missing.

The three deaths in Jamaica happened during preparations for the storm’s arrival as people were cutting trees, health minister Christopher Tufton said. Thirteen people were injured, mostly due to falling off ladders and rooftops.

He urged Jamaicans to be careful during preparations, adding they should ensure all homes are stocked with enough drinking water and non-perishable food.

Please use Chrome browser for a more accessible video player

Jamaica braces for Hurricane Melissa

On Monday evening Matthew Samuda, the environment minister, said the time to prepare for the storm was over and that “the time now is to listen to instruction”, advising the public to start using resources sparingly.

Evacuation orders issued as power outages hit

Map showing areas of Jamaica which have evacuation orders
Image:
Map showing areas of Jamaica which have evacuation orders

Jamaica’s government has issued mandatory evacuation orders for at least seven areas in the southeast that are designated as high risk.

As of Monday night, many people had remained in their homes, according to Jamaica’s minister for science, energy, transport and telecommunication, Daryl Vaz.

“It’s very difficult, and it has always been a problem because people basically don’t take the event as seriously as they ought to,” Mr Vaz told Sky News.

He added that evacuation numbers were still “way below” the government’s targets.

Please use Chrome browser for a more accessible video player

‘Very difficult’ to convince Jamaicans to evacuate

Colin Bogle, a Mercy Corps adviser based near Kingston, suggested many families were sheltering in their homes due to fears rather than complacency.

“Many have never experienced anything like this before, and the uncertainty is frightening,” he said.

“There is profound fear of losing homes and livelihoods, of injury, and of displacement.”

An estimated 52,000 people lost power as the hurricane approached, mostly in the western part of the country, the Jamaica Public Service said.

In the early hours of Tuesday morning, it said crews had managed to restore power for 30,000 of those affected and that they were continuing to work on the issues.

It added heavy rain and difficult terrain were “creating access challenges” and that “the safety of our crews and the public is our top priority”.

British holidaymakers locked down in hotels

Jamaica’s peak holiday season runs from mid-December to mid-April, but its tropical climate brings warmth all year round.

Hurricane season runs from June until November, but the country continues to attract tourists.

One of them is Andrew Tracey, a British holidaymaker who told Sky News he has been locked down in his hotel room until Wednesday at the earliest, having arrived on 20 October.

Please use Chrome browser for a more accessible video player

Briton in Jamaica: ‘There is an undercurrent of panic’

He also estimated there were at least 200 people from the UK staying at the same complex.

With all airports in Jamaica closed, his flight was cancelled and there was “nothing really we could do”, he said.

“If I knew that the hurricane would hit while I was out here, I wouldn’t have gone at all,” he said.

“It’s hard to comprehend what we’re about to expect. I’ve never experienced any kind of hurricane, let alone a Category 5.

“The tension in the hotel last night when we went down for dinner was definitely one of nerves, even locals.”

Please use Chrome browser for a more accessible video player

Hotel owner preparing for ‘catastrophic situation’

What route will Hurricane Melissa take?

Eastern Cuba is next in the path of Melissa, with tropical storm conditions expected to hit on Tuesday evening, including rainfall of up to 20 inches.

More than 500,000 people living in coastal and mountainous areas vulnerable to heavy winds and flooding have been evacuated, according to authorities.

Some 250,000 people were also accommodated in shelters around Santiago de Cuba, the second-largest city that lies right in the hurricane’s expected path.

A hurricane watch is in effect across the southeastern and central Bahamas, along with the British Overseas Territory, Turks and Caicos Islands.

They could be affected on Wednesday and the National Hurricane Centre expects flash floods with up to 8 inches of rainfall in tropical storm and hurricane conditions.

Continue Reading

World

Warships, the CIA and potential ‘precision attacks’ – the US-Venezuela crisis explained

Published

on

By

Warships, the CIA and potential 'precision attacks' - the US-Venezuela crisis explained

US warships in the region, the green light for covert operations, and deadly strikes on what the Trump administration claims are “narco terrorists” – could America’s next move be to strike Venezuela?

President Donald Trump has accused President Nicolas Maduro of leading an organised crime gang (without providing evidence) and declined to answer when questioned if the CIA has the authority to assassinate him.

In return, the Venezuelan leader has accused Mr Trump of seeking regime change and of “fabricating a new eternal war” against his country, as he appealed to the American people for peace.

The rhetoric coming out of the White House, coupled with the presence of military ships in the region, has raised questions about a possible armed conflict between the US and Venezuela.

The question in the air is: Will the US actually attack Venezuela?

The USS Gravely destroyer arrives in Port-of-Spain, Trinidad and Tobago, on 26 October. Pic: AP
Image:
The USS Gravely destroyer arrives in Port-of-Spain, Trinidad and Tobago, on 26 October. Pic: AP

What are US warships doing?

The docking of the USS Gravely guided missile destroyer in the capital of Trinidad and Tobago – just 25 miles from the coast of Venezuela – is the latest incident to escalate tensions.

Venezuela’s government condemned the arrival and called it a provocation by Trinidad and Tobago and the US.

The USS Gerald R Ford aircraft carrier – the largest warship in the world – is also moving closer to Venezuela.

Satellite image shows USS Gerald R Ford on 25 October off the coast of Croatia, a day after the announcement it would be deployed to the Caribbean. Pic: EU Copernicus
Image:
Satellite image shows USS Gerald R Ford on 25 October off the coast of Croatia, a day after the announcement it would be deployed to the Caribbean. Pic: EU Copernicus

It comes as the US has acknowledged carrying out at least seven strikes since September on vessels near Venezuela that it claims were transporting drugs, killing at least 32 people.

Venezuela’s government says the strikes are illegal, amount to murder, and are acts of aggression.

Earlier this month, Trump confirmed he has authorised the CIA to carry out covert operations – including lethal operations – in Venezuela.

The CIA has a long history of operations in Latin America, with actions varying widely from direct paramilitary engagement to intelligence gathering and support roles with little to no physical footprint.

What could happen?

To get an idea of what could happen next, Sky News spoke to Dr Carlos Solar, an expert on Latin American security at the RUSI defence thinktank.

He says the level of military strategy the US is applying around Venezuela seems “unproportionate” for the task of tackling drug trafficking.

In Venezuela, the government has civilians trained in the use of weapons to defend the country in the event of a US attack. Pic: AP
Image:
In Venezuela, the government has civilians trained in the use of weapons to defend the country in the event of a US attack. Pic: AP

“A build-up this size can only suggest there’s a strategic military goal,” he added.

Dr Solar says the role of the CIA is “not surprising”, as the US often deploys spying capabilities in countries deemed adversarial.

“With the chances of a military conflict looming, having the most intelligence capable on the ground would be reasonable.”

The world's largest warship, the USS Gerald R Ford, has been tasked to the Caribbean. File pic: Reuters
Image:
The world’s largest warship, the USS Gerald R Ford, has been tasked to the Caribbean. File pic: Reuters

Asked what could happen next, Dr Solar told Sky News: “One scenario is Trump authorises a round of long-range precision attacks in Venezuela’s territory linked to drug trafficking operations, eventually forcing Maduro to reciprocate later.

“We saw this early in the year when the US attacked Iran’s nuclear facilitates and Tehran returned missiles to US bases in Qatar.

“If the US decides to move more strongly, destroying all critical military targets from the Venezuelan forces, then the US could have Maduro surrender and leave the country immediately.

“This would be the least disruptive without causing greater destabilisation of the country.”

Please use Chrome browser for a more accessible video player

Venezuelan President: ‘We don’t want a war’

What does Trump say about Venezuela?

Trump said his reasons for the strikes on vessels were the migration of Venezuelans, allegedly including former prisoners, to the US – and drug trafficking.

“I authorised for two reasons really,” he said. “Number one, they have emptied their prisons into the United States of America…they came in through the border. They came in because we had an open border,” he told reporters. “And the other thing are drugs.”

He has accused Venezuela of trafficking huge amounts of cocaine into the US, and alleged Mr Maduro is the leader of the Tren de Aragua gang – a claim most of his own intelligence agencies do not support.

President Donald Trump is currently on a tour of Asia. Pic: Reuters
Image:
President Donald Trump is currently on a tour of Asia. Pic: Reuters

The US leader has not provided evidence for the claim about prisoners, and Sky News chief correspondent Stuart Ramsay pointed out the fentanyl drug that is causing destruction in America is largely manufactured in Mexico, not Venezuela.

“We are looking at land now, because we’ve got the sea very well under control,” Mr Trump added. It is not clear what actions this could entail.

The Pentagon recently disclosed to US Congress that the president has determined the US is engaged in “a non-international armed conflict” with drug cartels.

When asked if the CIA has the authority to execute Maduro, which would be a massive intervention, Trump declined to answer. Instead, he said: “I think Venezuela is feeling heat.”

Read more:
Venezuela opposition leader wins Nobel Peace Prize

Trump may have another motive in escalation of war on drugs

Venezuela's President Nicolas Maduro. Pic: Reuters
Image:
Venezuela’s President Nicolas Maduro. Pic: Reuters

What does Venezuela’s leader say?

Maduro has been in power since 2013, including re-elections in contests marred by accusations of fraud.

The last decade has seen his country gripped by spiralling hyperinflation and a humanitarian crisis that has seen an estimated eight million Venezuelans flee the country.

As the USS Gerald R Ford aircraft carrier moved closer to Venezuela, Maduro accused the US government of “fabricating a new eternal war” against his country.

Venezuelan ambassador to the UN, Samuel Moncada, holds a newspaper article about a recent US military strike. Pic: Reuters
Image:
Venezuelan ambassador to the UN, Samuel Moncada, holds a newspaper article about a recent US military strike. Pic: Reuters

“They promised they would never again get involved in a war, and they are fabricating a war that we will avoid,” he said in a national address.

“They are fabricating an extravagant narrative, a vulgar, criminal and totally fake one,” he added, perhaps a reference to Trump’s claim that he is the leader of the Tren de Aragua gang and that his country trafficks cocaine into the US.

“Venezuela is a country that does not produce cocaine leaves.”

Members of Venezuela's Bolivarian National Guard. Pic: Reuters
Image:
Members of Venezuela’s Bolivarian National Guard. Pic: Reuters

Tren de Aragua, which traces its roots to a Venezuelan prison, is not known for having a big role in global drug trafficking but instead for its involvement in contract killings, extortion, and people smuggling.

Venezuela has raised a complaint to the UN Security Council and demanded accountability from the US.

Continue Reading

World

Over 1.2m people a week talk to ChatGPT about suicide

Published

on

By

Over 1.2m people a week talk to ChatGPT about suicide

An estimated 1.2 million people a week have conversations with ChatGPT that indicate they are planning to take their own lives.

The figure comes from its parent company OpenAI, which revealed 0.15% of users send messages including “explicit indicators of potential suicide planning or intent”.

Earlier this month, the company’s chief executive Sam Altman estimated that ChatGPT now has more than 800 million weekly active users.

While the tech giant does aim to direct vulnerable people to crisis helplines, it admitted “in some rare cases, the model may not behave as intended in these sensitive situations”.

Please use Chrome browser for a more accessible video player

OpenAI launches web browser

OpenAI evaluated over 1,000 “challenging self-harm and suicide conversations” with its latest model GPT-5 and found it was compliant with “desired behaviours” 91% of the time.

But this would potentially mean that tens of thousands of people are being exposed to AI content that could exacerbate mental health problems.

The company has previously warned that safeguards designed to protect users can be weakened in longer conversations – and work is under way to address this.

“ChatGPT may correctly point to a suicide hotline when someone first mentions intent, but after many messages over a long period of time, it might eventually offer an answer that goes against our safeguards,” OpenAI explained.

OpenAI’s blog post added: “Mental health symptoms and emotional distress are universally present in human societies, and an increasing user base means that some portion of ChatGPT conversations include these situations.”

Read more from Sky News:
King heckled over Prince Andrew
British airline suspends operations

Please use Chrome browser for a more accessible video player

Parents suing OpenAI after death of son

A grieving family is currently in the process of suing OpenAI – and allege ChatGPT was to blame for their 16-year-old boy’s death.

Adam Raine’s parents claim the tool “actively helped him explore suicide methods” and offered to draft a note to his relatives.

Court filings suggest that, hours before he died, the teenager uploaded a photo that appeared to show his suicide plan – and when he asked whether it would work, ChatGPT offered to help him “upgrade” it.

Last week, the Raines updated their lawsuit and accused OpenAI of weakening the safeguards to prevent self-harm in the weeks before his death in April this year.

In a statement, the company said: “Our deepest sympathies are with the Raine family for their unthinkable loss. Teen wellbeing is a top priority for us – minors deserve strong protections, especially in sensitive moments.”

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

Continue Reading

Trending