States its people its economy and the way it deals with the rest of the world the bottom line. Hello im sam is a than this is counting the cost of aljazeera your weekly look at the world of business and economics this week japan im aging population soaring debts and follow me in recession can japans new Prime Minister of 4 decades of contraction. Also this week pakistan is asias best performing stock market and the rally may have a long way to go despite the pandemic. Plus famine poverty and uprisings a stark warning says the pandemic wipes out a decade of economic growth. In the end maybe in a conservative country the choice of continuity was too appealing chief cabinet secretary. Replaced his bastions as Prime Minister stepped down as the countrys longest serving Prime Minister for Health Reasons challenges to pick up from where they left off and make sure their twentys are not a wasted decade. Had attempted to turn around the stale economy with a 3 pronged revival plan we have inherited an economy that struggled with deflation and slowing growth after the stock and Property Market crash in the 1990 s. The effort had limited success and rb nomics as it was known was more or less abandoned the central bank introduced unconventional tools to tackle the countrys problems from driving Interest Rates into negative territory to a quantity of easing again with limited success right now the economy is in its 3rd straight quarter of recession in the 2nd quarter of this year the economy shrank an annualized 28 point one percent due to the pandemic to counter that our bay initiated a trillion dollar Stimulus Program the countrys debts are expected to hit 268 percent of g. D. P. By the end of the year thats up about 40 Percentage Points from where are they inherited so what can we expect from surrogates premiership or joining me now from tokyo is now a year or she could go oh your is a senior economist tokyo based so many tournaments so we trust banks good to have you with us so is abby nomics still relevant today yes it is. Then i make you feel very important because its accommodate accommodate my theory potency and expansionary policy. That you know we cant let up already because of an army yes i was able to brag that with a phrase and now read probably 90. Accommodate their policy on the stuff or is the best that definitely stick on the me. So what do you think the pseudo will change if anything then to abba eban or mick. I think sue gets policy rating warrants same as athletes that maybe some more different. Fruit breaking after full body items ration the most things they go through the phone. And that was excessive interest i expect him for september no way this year small fire phone charity or how many instead of medicine some offer education and create that this agency has some more serious issue of the government for i think real restructuring original plan attorneys no. Means around a center a young cycle of an alex do you think that will deal with some of the basic structural problems and challenges which still face japans economy i mean basic one of which is an aging population right as everybody know your path has the oldest population in so worked. Has said it was and now something made us so that foreign prostrate that she has the 1st man i expect this is all well. If sam says if only this those stops the ending for operation so across the city from morning their economy may be the key to boost defense economy i expect so though we have succeeded in promoting begin to fall and thinking isnt that the best interest the same time all the expansion measures you are talking about they dont help the debt problem does japan have a debt problem do you think at this point. No it doesnt. 90 percent of defines a government thats plana by domestic entities the fact that we define almost all the folks find 2 percent of all outstanding defines government from the end of must have been 20 and he meant the top by a defunct the 2nd largest brightest Insurance Companies and the pension fund raise 22 percent. On 3 percent do not expect rising best ever to raise or not as 90 percent that would be had by the message and the not. From a dramatic end to the need daisies. Artist management. And of course you know its pretty recent b. O. J. In addition that the usa has suppressed industry. If you have control policy as. Part of the uns accomplished amanda did you see how to read that any sound i agree thats at best prices are going to back. To g. D. P. Ratio. Is high isnt it but i dont think we raise the call. To an effect im just that. You dont think that what he said before the election is going to that hes actually going to follow through on that ben i dont think you know it is the consumption tax he had said that see their faces and they said they need to intersect consumption tax for 10 years to a place more emphasis on economy recovery during our after calling banking discuss this crock because thats you know what about when it comes to International Relationships what do you see in store closer relationship with washington. I mean just assume there is to have really those people might think its funny that. Foreign policy from other foreign minister. Is also the man on the scene as a result jeff rense Foreign Policy really fast us right here and were focused on today since. Read before china. So where does it leave our relationships with china if he moves closer to the u. S. I think we also price amplify is known to connotation ship with china. But i mean its. Just so you know were. Reading translations 6 rifat sources. At the same time thats for sure looks like its going to be a challenge thank you very much for your thoughts and comments and analysis on that thank you. Under the headline our markets detached from reality we probably have another one thats raised eyebrows pakistans care c. 100. 00 has surged more than 36 percent since march this year making it one of the best in asia yet the rally may have a long way to go the market is still 50 percent below its peak its extraordinary because pakistans economy was pretty fragile before the pandemic after a 6000000000. 00 loan from the International Monetary fund last year the lender of last resort extended another 1400000000. 00 to tackle the health and economic crisis pakistans Unemployment Rate is predicted to surge to 28 percent that doesnt include informal day laborers about 2 thirds of the population or 145000000 people are living in poverty. The nation is dependent on its fast spread to finance its spending in the 12 months to the end of june overseas pakistanis sent back 23000000000. 00 compare that to its exports of just 21000000000 dollars 3rd find out whats behind that stock market surge joining me now from karachi there you could go for u. B. S. The chief Investment Officer a karate based faisel funds so what do you make of the stock markets then you have does it make any sense well the market is up 56 percent from its low in march when away what their speech and a lot of down to are that easy so i would say thats come to them in a multiple factors multiple all of the factors that i wanted to get to the search question that supply a time you know the debt ratio is increasing right then when it was still dealing with the after effects of the whole credit virus locked down to many that its surprising that the stock market would be rising so fast at this point but we have to understand the facts arent answered behind the Program Last Year and it has started on a path of economic recovery and our whole edition and confidence was just about to start the locals men who were finding it and what happened was the Economic Team here was quick to understand the impact that forward would have liked the economy they were quick to react to words monetary and fiscal stimulus just as in most countries in the globe did quite yet their markets right back in quickly and recover quickly and overall we see the confidence theyre not going back that the locals are primarily for growth this market. For not having next 10. 00 in the market for the past 2 years because they had a lack of focus on the economic stability of the country by the i mean for granted and i think that confidence and the locals went on the Violence Free obviously that really started by the central bank by over almost 600. 00 basis points addict it was a fire that. So i would say that the side is not such a sweet spot right now for not having next set of what 2 years and that ability to send more is very limited now and the discount is a region that is in debt so its a great time for quantised and to the country again goes out there and i see the markets there doing on the spot how the interventions by the bank of Pakistan Government being things like you mention the flashing right expanding loans to businesses yes so what happened was men who were 900 the governor of initially was on had some solutions bought by the good do you realise in fact you wont have any started giving some easing in the more space they are serious early on by a very small and are looking dictated by the underlying fundamentals of the economy arent going to be the cant drive to be doing those very parts and we can see now that he does it at the ready as anybody says because of the fosters that is expected i think detrimental for the greenback so keeping the already strong like ours keeping an eye view are repeat and the form of exchanges those that were going to drop in before getting the full grants and then i think theyre going to take their jobs why getting back to doing this much needs doing this to the economy and are just the governor i think you have a great team of professionals are going to have that and then this matter what you make of the Prime Ministers handling of the pandemic then. If this is not unprecedented event and this year this country and most are created started to. Generic words in a lockdown then watch for the box on that its on prescription correct and it was primarily a lot down with some focus groups merged with those areas where there was a majority a focus of the kids as they are active cases here so i would say they were on a con and are there to read and dont all achieving their target which is being disease and it was not just him and he had a great team at various levels of the government that are geared physicians and those cities are best decisions because as you can see that friend ration is a different level of progress there are Different Levels of and was ordered by being in this epidemic at the early stages so it gives a confidence that the iranian government has the ability being such a big crisis so i would say it hats off to him in a recent interview with al jazeera noncon spoke about the Economic Future being linked to the chinese economy is that a good thing is not a good direction i would say so its a good thing because if you look at history for the past 30 the chinese economy has been growing phenomenally or less and linking yourself to that economy is from an economic standpoint i think its a big move by the government. Unfortunately the best get offered that kind of growth because its just not there so linking up the china problem youre already going on next time why is it think what is going where and we can debate about the finer aspects of growth but thats a separate argument what about the developmental Road Initiative is that delivering for pakistan from a local standpoint i would say it is depicts that this is on dont project. So productive as and one of the initiatives is all down from there and the foods offered are stark. To pay off your guard look at the weather short down the Software Look at the long dividends that started going to benefit far especially from the early Infrastructure Projects or china set up by fox from the father project and set up there so i think with all of those projects our g. D. P. Growth path would have been much different and if you look at the overly economic interconnected then this is your brings congress together and this one boy and 100 initiative is getting last word their boss that within their region we can have better interconnectivity back to comment or spender to the other so im not counting the cost of. Being invested to china which as you know im sure some in the west are warning countries about should be cautious about that just. So i agree that that depends on the war called into sinai and what bible if you dig on if its a very aggressive dent it can be detrimental to your country but in this case every country choose that on our new economy growth were stronger than losing debt from china and i dont think. Look at the long term in fact of one bad 100. 00 initiative and its not Something Like theyre not going to give us debt and make us trapped in that and then use us for that one thats longer initiative so i think its a longer term project and they will not shoot themselves in the 45 compromising and focus on on their projects theyre so look at for a long dont respect their life or think this is going to happen and ive gotten by and are you all right thing great talking to you thanks so much to cooper thank you. There are warnings the world is on the brink of a hunger pandemic Charity Oxfam says up to 12000. 00 people could starve to death each day because of coronavirus related restrictions in india mounted fishing is already a threat to life and the u. N. Says the pandemic is making that worse elizabeth for has more from new delhi. She did they these relatives have come to her home to comfort the mother of 2 her 5 year old daughter sagna died after having diarrhea sheila says its because they couldnt afford to feed her while she was sick got the money we. Got the money she died hungry and there was nothing to eat what do we eat there is no work even if i go looking for work there is none. Sagna is just one of nearly 2000 under 5 year olds who die every day in india with malnutrition the underlying cause and the un has warned of more hunger and malnutrition because of the increase in unemployment and poverty during the coronavirus pandemic. The Indian Government says it spending 20000000000. 00 on giving free rise sweet and lentils to 800000000. 00 households but help isnt reaching everyone nongovernment aid organizations continue to fill the gap left by the state of new scientist magazine for 115000000 andean children who are dependent on daily School Lunches are on the verge of malnourishment because of one long Term School Closure is the n. P. R. Child watson youve been feeding the children the people of this westerly neighborhood for the past 15 years and says its never been as busy as it has been here. Sonia whos pregnant with her 1st child collects free rations with what she feeds herself and her 10 year old nephew saeed her husband has been looking for a job since the factory he used to work in closed. Months ago thought all i needed to tiny good. Weve come to stay at our sister in law was to eat because we didnt have any food at home and the rations have helped us we could eat a little because there were days when we would go to bed hungry situation changes very quickly yet the uns childrens Agency Unicef says addressing malnutrition must remain a priority for so much effort going to preventing a meriting the huge huge numbers of go for it and taking that it doesnt spread more but the same time we should not lose all the efforts made into stopping malnutrition and losing all of the progress that has been made in the last few years. She did they view the death of her daughter couldnt be more painful her 5 year old son also died from hunger during the economic crisis in india 4 years ago now the warnings are coming in ficken fast with the United Nations saying yemen south sudan and northeastern nigeria as well as democratic republic of congo all facing the 1st famines of the coronavirus era all 4 countries had been in the midst of conflict and food deprived as a the agencies were unable to operate freely a decade of Poverty Reduction in some of the poorest nations is about to be wiped out as the International Monetary fund back in calls from the world bank for creditors to cut that rather than just offering Interest Payment relief the stark warning is come as risk Analysis Firm various made for kraft identified 37. 00 nations that face major spikes in on rest due to painful post pandemic economic recovery and mobile crafts lead economist david willey joins us now good to have you with us so is it too late to stop decades of economic gains evaporating at this point. Yes that the Global Economy has been devastated by the current irish pen demick and wealthy nations are no exception that were about a month ago we released the results of our recovery capacity index to help our clients understand what that next phase of the recovery looks like looking out into the next few months ahead to 2021 how rapidly do we see countries recovering from the economic slowdown and when we look at just the g 20 countries is the 20 largest economies in the world what our data predict is that youre going to see a 2 track recovery emerging so on the one hand countries in western europe in east asia that were initially hardest hit by the pandemic they ultimately had the underwrite underlying resilience thats going to allow them to bounce back relatively quickly from the downturn on the other hand youve got major emerging markets that are now forming the global epicenter of the pandemic these are places like india brazil south africa. Countries that suffered very severe setback economically from the pandemic and their economies were already growing slowly even before krone virus they are the places where are that say are most at risk stagnating you know long after their peers in western europe and east asia