Women Leading Central Banks

According to the International Monetary Fund (IMF) women are leading more central banks than ever before, thanks to appointments in the past year, but recent gains still leave the share of female governors far short of parity. Before you read the details, please join me in applauding the services of Dr. Shamshad Akhtar who was appointed Governor, State Bank of Pakistan on January 02, 2006.

Dr. Shamshad Akhtar

Dr. Shamshad Akhtar took over as Governor, State Bank of Pakistan on January 02, 2006 for a three-year term. Dr. Akhtar, who is the first woman and the 14th Governor of the State Bank since its inception in July, 1948 brings rich experience, both national and international, to her new assignment.

Prior to her appointment as SBP Governor, Dr. Akhtar has been serving the Asian Development Bank (ADB) as its Director General, Southeast Asia Department since January, 2004. Earlier, she was Deputy Director General of the Department. She also held the position of Director, Governance, Finance and Trade Division for East and Central Asia Department of ADB.

Dr. Akhtar began her career in ADB in 1990 and rose to the position of Manager in 1998 after serving as Senior and Principal Financial Sector Specialist. She has been ADB’s Coordinator for APEC Finance Ministers Group from 1998-2001 and has served on a number of ADB committees including the Reorganization Committee, Appeals Committee and Oversight Committee etc. She has interfaced and represented the Asian Development Bank at the Bank for International Settlements and the International Organization of Securities Commissions (IOSCO). She has developed a broad regional expertise in financial and economic matters of Central Asian Republics & Southeast Asia including the People’s Republic of China.

Before joining the ADB, Dr. Akhtar worked for 10 years as an Economist in the World Bank’s Resident Mission in Pakistan. In Pakistan, she also worked briefly with the Planning Offices of both the Federal and Sindh Governments. She dealt with wide ranging subjects which covered analysis of macroeconomic situation, finance and money and structural reforms of key sectors including industry and agriculture. Her work included papers on taxation system of Pakistan, state of inter-governmental fiscal relations, poverty incidence & its dimensions and foreign direct investment etc. Dr. Akhtar also contributed to the development of diversification of financial markets including the analysis of monetary policy and state of banking industry (at the World Bank) and restructuring of the Securities & Exchange Commission, Insurance Commission and worked closely with the private sector including the stock exchanges of Pakistan. She has been advising the central banks on reforms of financial markets. Dr. Akhtar has also been dealing with the banking sector’s legal, regulatory and institutional reforms while advising on diversification of the industry to exploit long term funding through development of bond market.

Born in Hyderabad, Dr. Akhtar had her earlier education at Karachi and Islamabad. She has had an excellent academic record. She graduated from the University of Punjab with a B. A. Economics degree in 1974. Dr. Shamshad Akhtar has an M.Sc. in Economics from the Quaid-e-Azam University, Islamabad, an M.A. in Development Economics from the University of Sussex in 1977 and a Ph.D. in Economics from the U.K.’s Paisley College of Technology in 1980. She is a post-doctoral fellowship Fulbright Scholar and was a visiting fellow at the Department of Economics, Harvard University in 1987.

Dr. Akhtar has presented numerous papers on economics and finance at international conferences/seminars/symposia. Her research interests are on Monetary and Fiscal Policy, Banking and Capital Market, International Finance Architecture, Regulation and Supervision, and Industrial & Corporate Restructuring.

The number of women in governor roles rose to 29 this year from 23 last year, though that left the share of female leaders at just 16% of the world’s 185 central banks, according to an April report by the Official Monetary and Financial Institutions Forum. Greater gender balance in senior positions may help increase the diversity of thought and checks and balances, in turn contributing to increased economic and financial stability and improved performance, IMF research shows.

Appointments this year in Bosnia and Herzegovina and Papua New Guinea are examples of how smaller economies are driving more progress on gender balance, according to OMFIF, a London-based think tank for monetary, economic and investment issues.

This year’s rise was the biggest gain in more than a decade of surveys, but the Chart of the Week shows how central banks still have much room to make progress toward greater parity in the ranks of top policymakers steering the global economy.

The tally adds to evidence of the struggle of women at central banks as well as in the economics discipline, where they remain underrepresented even after steady gains.

A first-of-its-kind IMF survey of the European Central Bank and its Group of Seven counterparts showed last year that fewer than half of employees at those institutions are women, but on average only a third of women are economists or managers. This survey underscores how policies to eliminate gender gaps have been only partially successful.

ECB Executive Board member Isabel Schnabel has cited a substantial gender imbalance in economics—one that the institution is determined to change among its own staff. Schnabel noted in a 2020 speech that the barriers aren’t insurmountable, and that mentoring opportunities and ensuring childcare can help narrow gender imbalances. 

The latest additions to the list of countries naming a woman as central bank chief came in January, when Jasmina Selimović began a six-year term in Bosnia and Herzegovina and Elizabeth Genia was appointed to the top job after serving as acting governor. Last year, Michele Bullock became the first woman to lead the Reserve Bank of Australia.

Cambodia, Georgia, Moldova and Montenegro also appointed women as the heads of their monetary authorities last year, according to OMFIF’s 2024 gender balance index. 

 

Israel-Lebanon escalation to weigh on Kamala

Escalation of conflict between Israel and Lebanon’s Hezbollah leading to higher oil prices and inflation could weigh on the popularity of US Presidential candidate Vice President Kamala Harris, reports ZAWYA.

The resulting uncertainty in the region would lead to higher oil prices and inflation, which could make Kamala less popular, Yoel Sano, head of global, political and security risk, BMI, said.  

Republican candidate, Donald Trump is likely to be less critical of Israel and Saudi Arabia, while Kamala is, rhetorically at least, more sympathetic to the Palestinian cause, experts said.

Should Trump return to the White House, Sano said a nuclear deal with Iran is ‘not impossible’ under his leadership.

But there is a matter of willingness on the Iranian side, and a Kamala presidency would be ‘more conducive’ to re-starting talks, Sano said, as well while Trump did not object to a nuclear deal in principle, he objected to a deal signed by President Barack Obama in 2015. 

“Iran is potentially undergoing a leadership transition. The supreme leader Ayatollah Ali Khamenei is 85 and has been in office 35 years.

“In this context, his would-be successors are unlikely to want to be seen as soft towards the US by rushing towards a new nuclear deal with the US,” he said.

While the Israel-Hamas conflict is likely to take ‘many months’ to resolve, BMI would expect it to be over by the time the new Presidential term starts in January 2025, Sano said.

Both Kamala and Trump continue to favour the process of normalization of relations between Israel and Saudi Arabia, which has been delayed by the Israel-Hamas conflict, he said, adding that it is unclear when progress can be made.

While escalation of Israel and Hezbollah hostilities would weigh heavily, BMI last month put likelihood that escalation would happen at 30%, with both sides unlikely to want it due to factors including increased domestic tensions and economic costs.

Tension between the two sides flared at the weekend, but analysis from S&P Global Market Intelligence said the exchange of fire was unlikely to grow in scope.

BMI projections for the US election, which is due to take place in November, showed a tight 50–50 race between Trump and Kamala, with Kamala perceived as a "highly energizing candidate" compared to Biden, Iris Malone, BMI’s director, political science, data modelling, said.  

Prior to her entering the race, polling on Democrat party voter enthusiasm was 36% in April, but it has jumped to 85% for Kamala, she said.

 

Iran appoints female government spokesperson

President Masoud Pezeshkian has appointed Fatemeh Mohajerani as the new spokesperson for the Iranian government on Wednesday. The appointment marks a historic first, as Mohajerani becomes the first woman to hold this position in Iran.

Mohajerani, born in 1970 in Arak, holds a Doctorate of Business Administration from Heriot-Watt University Edinburgh Campus. She served as the head of the Technical and Vocational Training University of Shariati (special for females) in Hassan Rouhani’s government. Mohajerani was also elected as the head of the Center for Brilliant Talents in 2017. 

In addition to this appointment, the cabinet meeting also saw the appointment of Elias Hazrati, a former member of the Iranian Parliament, as Chairman of the Government's Information Council. 

 

Namibia blocks vessel carrying munitions

According to a BBC report, a vessel MV Kathrin, en route from Vietnam, was blocked from docking in Namibia on suspicion of carrying military cargo for Israel’s ongoing war against Hamas in the Gaza Strip.

The ship was stopped due to “explosive material destined for Israel,” Namibian Justice Minister Yvonne Dausab claimed. The ship, which left from Vietnam, had requested to dock at Walvis Bay before continuing north towards the Mediterranean.

Walvis Bay, Namibia's largest commercial port, is located on the western side of the African continent. It handles nearly 900 vessels and about eight million tons of cargo each year, the BBC cited the Namibian Ports Authority (Namport). The MV Kathrin was set to dock there on Monday but was stopped.

Justice Minister Yvonne Dausab said this was in line with Namibia's support for the Palestinian people and its call to end the violence in Gaza, as reported by the state-run New Era news website.

The report noted that the reason for the MV Kathrin's request to dock was initially uncertain, as ships on long voyages often stop for supplies, rest, or cargo exchanges.

Citing a police investigation, Dausab later confirmed that the MV Kathrin was "indeed carrying explosive material destined for Israel" and was thus barred from entering Namibian waters.

She stressed that Namibia is committed to avoiding involvement in "Israeli war crimes, crimes against humanity, genocide, as well as its unlawful occupation of Palestine."

The BBC noted that the Economic and Social Justice Trust (ESJT) welcomed the decision, with Herbert Jauch saying they are pleased that our government has decided to respect international law and not be complicit in genocide."

Namport, which had not responded to the BBC before Dausab's statement, mentioned it had not received the required pre-clearance documents but promised to ensure "effective safety and security of our territorial waters and ports" while supporting Namibia's international viewpoint on the ongoing conflict.

In their report, the BBC noted that Namport had earlier allowed another vessel with dangerous cargo to pass through but not dock.

Rights groups warned that allowing the vessel to dock could involve Namibia in possible human rights violations.

 

Indian dockworkers’ strike averted

The latest showdown between dockworkers in India and their employers appears to be ending without any significant disruptions.

Port employees’ unions in India agreed to a new five-year wage deal with government officials, averting a planned nationwide strike scheduled to start Wednesday, Bloomberg’s Rajesh Kumar Singh and Weilun Soon report.

The new deal halts a walkout that could have involved nearly 20,000 workers and brought widespread disruption to cargo operations at some of the nation’s busiest ports.

Unions at India’s 12 major state-run ports have been negotiating with the government since 2021 to try to increase pay.

Under the newly agreed terms, unions accepted an 8.5% wage increase over five years, backdated to January 01, 2022, said Narendra Rao, a working committee member of the Centre of Indian Trade Unions.

P.M. Mohammed Haneef, president at All India Port and Dock Workers’ Federation, said management has agreed to conclude the proceedings of the wage negotiations panel within 15 days.

Earlier this year, labor disruptions at Germany’s biggest ports threatened to worsen shipping delays, and a French union called a series of strikes to protest government pension reforms, potentially slowing grain export terminals.

In March, Finland’s ports and rail networks faced strikes over labor market reforms.

The following month, port workers in Chile staged protests that disrupted the loading and unloading of ships in one of the biggest exporters of raw materials from copper and lithium to pulp and fruit.

Perhaps the biggest potential problem with maritime labor is unfolding in the United States, where talks between East and Gulf Coast dockworkers and their employers are at a stalemate, a little over a month before the current contract expires September 30, 2024.

 

Bangladesh Floods: Natural Calamity or Manmade Disaster

The recent floods in Bangladesh have underscored the complex and often contentious nature of water management in South Asia. As the region faces increasing challenges from climate change and population growth, the need for cooperation and mutual respect between nations has never been more urgent. The disaster serves as a wake-up call, highlighting the critical importance of regional collaboration in managing shared resources and ensuring the well-being of all people in the region.

Bangladesh, frequently affected by natural calamities, is now enduring one of the worst floods in recent memory. While floods are common in this region, the current catastrophe is not solely attributable to nature’s wrath. Instead, it is being increasingly linked to the actions of neighboring India.

The recent and abrupt release of water from the Dumbur Dam in India’s Tripura State, located upstream of the Gumti River, has sparked unprecedented flooding in Bangladesh’s eastern border districts. This incident has intensified long-standing tensions between the two countries, with Bangladesh accusing India of negligence and poor management of their shared water resources.

The flood’s impact has been nothing short of catastrophic. More than three million people have been affected, with vast areas of farmland, homes, and infrastructure swallowed by the surging waters. The districts of Feni, Parshuram, Fulgazi, and Chhagalnaiya have suffered the most, as the Chhota Feni River, along with the Muhuri, Silonia, and Kahua rivers, swelled beyond control.

Residents of these regions are in shock, noting that such severe flooding has not been witnessed in over three decades. The immediate trigger for this disaster, as widely believed in Bangladesh, was India’s decision to release water from the Dumbur Dam.

Indian authorities, however, have pointed to heavy rainfall in the Gumti River’s catchment areas as the primary reason for the dam’s release. Nonetheless, Bangladeshi officials and local media remain adamant that the scale of the flooding could have been mitigated with better management and communication from the Indian side.

In response to the growing accusations, India’s Ministry of External Affairs (MEA) has defended its actions, stating that the water release from the Dumbur Dam was an automatic response to the heavy inflow caused by intense rainfall.

According to the MEA, real-time flood data was shared with Bangladesh until the floods disrupted communication channels. Indian officials maintain that the crisis was an unavoidable consequence of natural forces and that they are not to blame for the resulting devastation.

Despite these explanations, Bangladesh remains skeptical. Officials in Dhaka argue that India’s handling of the dam and the subsequent communication breakdown significantly worsened the situation. They believe that India could have taken additional steps to minimize the impact of the water release, including better coordination with Bangladeshi authorities and ensuring contingency plans were in place for such emergencies.

The fact that communication between the two countries failed at a critical moment has raised alarm bells in Dhaka. This disruption has exposed serious flaws in the existing bilateral protocols, particularly in how emergency communications are managed. Whether due to inadequate preparedness or a lack of priority given to emergency communication, this failure has clearly exacerbated the disaster.

The flood crisis is not merely an environmental catastrophe; it carries significant political and diplomatic repercussions as well. The incident has strained the already fragile relations between India and Bangladesh, with public opinion in Bangladesh increasingly viewing India as an unreliable and negligent neighbor. This growing sentiment could have lasting effects on bilateral relations, particularly in areas such as water-sharing agreements, border management, and regional cooperation.

For years, Bangladesh has advocated for fair and equitable water-sharing agreements with India, given its reliance on trans-boundary rivers like the Ganges, Brahmaputra, and Teesta. The recent floods have reignited these concerns, with calls growing louder for a more transparent and accountable system for managing shared water resources.

In the wake of this disaster, there is a strong push within Bangladesh for a reevaluation of its water-sharing arrangements with India. Many are demanding stricter regulations and more effective safeguards to prevent a recurrence of such incidents. Additionally, there is increasing support for greater international involvement in overseeing the management of these critical resources, considering the potential for cross-border disputes.

While the political and diplomatic fallout is significant, the human toll of the floods is devastating. Millions of people have been displaced, with many losing their homes, livelihoods, and, tragically, loved ones. The affected regions are now facing severe shortages of food, clean water, and medical supplies, as relief efforts struggle to address the magnitude of the disaster.

The floods have also deepened existing vulnerabilities in Bangladesh’s rural areas, where poverty and inadequate infrastructure make communities particularly susceptible to natural disasters. The long-term impact of the floods will likely be felt for years, as Bangladesh undertakes the arduous task of rebuilding and recovering from this calamity.

As Bangladesh contends with the aftermath of the floods, it is evident that the country must bolster its disaster preparedness and resilience. This involves not only improving infrastructure and early warning systems but also ensuring that neighboring countries are held accountable for actions that have cross-border consequences.

Bangladesh must continue to assert its rights and interests in regional discussions, particularly concerning water management and disaster response. For India, this incident should serve as a critical reminder of the importance of maintaining transparent and reliable relationships with its neighbors. Effective communication, collaboration, and a genuine commitment to resolving shared challenges are essential to preventing similar disasters in the future.

 

Gaza: Prolonged and Inconclusive war

Israeli army officials have become increasingly exasperated with the prolonged and inconclusive war against Gaza over last eleven months. Their frustration is being compounded due to the mounting casualties of Israeli soldiers. 

The Gaza war may ultimately come to an end but the complicity of Western countries in Israel’s carnage in the Palestinian territory will never slide into oblivion.

Israeli Prime Minister Benjamin Netanyahu launched the war on Gaza on October 07, 2023 after Hamas carried out the Al-Aqsa Storm, a surprise military operation in southern Israel. More than 1,100 people were killed during the operation and about 250 others were taken captive. 

Netanyahu has repeatedly vowed to continue the war until achieving “total victory” over Hamas and “destroying” the Palestinian resistance movement. 

Despite receiving large amounts of weapons from Western countries, in particular the United States, the Netanyahu regime has failed to make good on its promise.  

Israel’s failures on the Gaza battlefield once again came to the fore after an army general acknowledged the regime’s inability to defeat Hamas. 

“For almost a year now, we have not been able to fully defeat even our smallest enemy,” Major General Israel Ziv told Israel’s Maariv news site.

Ziv, who previously headed the Israeli military’s operations directorate, added that there are still 20,000 Hamas fighters regrouping in Gaza.”

He admitted that Israel will not be able to get involved in a broad war with Iran and Lebanon’s Hezbollah, citing the regime’s inability to defeat Hamas. 

“Israel certainly cannot take on the task of fighting everyone when it can’t even close the simplest front,” he said.

Ziv’s statements echo a speech delivered by war minister Yoav Gallant earlier this month. 

Speaking during a closed-door hearing before a Knesset committee on August 12, Gallant dismissed Netanyahu’s “total victory” slogan as “nonsense” and “gibberish”.  

Gallant also said Netanyahu’s “total victory” goal amounts to a “beating of war drums” not backed up by actions.

On June 19, the Israeli military spokesman also disputed Netanyahu’s war aim of defeating Hamas. 

“The idea that it is possible to destroy Hamas, to make Hamas vanish — that is throwing sand in the eyes of the public,” Rear Adm. Daniel Hagari told Israel’s Channel 13. He added, “Hamas is an idea, deeply rooted in the hearts of the residents of Gaza”.

Netanyahu has been accused of derailing talks aimed at ending the Gaza war to keep himself in power. The premier believes that a permanent state of war will help him avoid accountability for failing to prevent the Al-Aqsa Storm. However, he remains under fire for failing to secure the release of the remaining captives in Gaza.

More than 100 of those who were taken captive on October 07 were freed following a swap deal with Hamas in November last year. Dozens still remain in Gaza. Dozens of others have lost their lives during Israeli strikes on the territory. 

Besides, the Gaza war has taken a heavy toll on the Israeli military which has put immense pressure on Netanyahu.  

According to Israeli media, more than 700 Israeli troops have died since October 07.

Despite Israel’s claims of dismantling Hamas, the group’s attacks still claim the lives of the regime’s soldiers on the battlefield. 

The Israeli army continues to strike residential buildings, schools and hospitals in Gaza under the pretext of targeting Hamas fighters in a bid to distract attention away from its failures. 

About 40,500 Palestinians including more than 16,000 children have been killed in Gaza since the start of the Gaza onslaught. 

Unfortunately, the United States and some of its Western allies continue to feed Israel’s war machine despite the rising civilian death toll.