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Author: Echobiz

Nigerian Anti-graft Activists Want Further Action From Buhari

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Anti-corruption activists in Nigeria say the president’s suspension of two top officials is only a first step and must be followed up with more action.

On Wednesday, Buhari suspended national intelligence agency chief Ayo Oke, who was linked to more than $40 million found in an empty Lagos apartment, and the secretary of his government, David Babachir Lawal, who allegedly collected money on a phony contract.

Abdulkarim Dayyabu is chairman of the Movement for Justice in Nigeria, a non-governmental organization.  He says the suspensions are overdue.

“This should have been done a long time ago,” Dayyabu told VOA’s Hausa Service on Thursday.  “Someone like Buhari ought to take immediate measures against any official accused of corruption; he should not wait for too long.”

Abdulmajid Dan Bilki Kwamanda is a member of the ruling APC coalition who recommends the president move against other aides.

“Buhari is finally fighting corruption from within.  He must continue to look inwards and confront his senior officials who are accused of corruption head-on,” he said.”

Another activist, Naja’atu Mohammed, is skeptical that the suspended officials will be held accountable, saying the administration shielded Lawal previously when senators accused him of corruption.

“We are looking for results,” she told VOA.

There have been calls, including one from Nigeria’s Senate, for the removal of Lawal over his alleged complicity in the mismanagement of funds meant for a presidential initiative on northeastern Nigeria

Rholavision Engineering, a company owned by Lawal, received payments of about $500,000 from a contract he awarded for the clearing of “invasive plant species” in Yobe state.

Oke, director-general of the National Intelligence Agency (NIA), is embroiled in the discovery of $43 million in cash by the Economic and Financial Crimes Commission, EFCC.

So far, no one has claimed ownership of the money, which was in both local and foreign currencies.

Ownership of the apartment complex in which the funds were found, Osborne Towers Lagos, is still unclear, but the building is occupied by many powerful Nigerians including the former chairman of the opposition party, Ahmadu Muazu, whose PDP ruled Nigeria for years under former president Goodluck Jonathan.

Government spokesman Femi Adesina said the government has launched an investigation into the funds.

Another presidential spokesman, Garba Shehu, told VOA’s Umar Farouk Musa in Abuja that Buhari has given two probe panels, headed by Vice President Yemi Osinbajo, two weeks to investigate and submit their findings.

The suspensions follow recent discoveries of large amounts of money by the EFCC in strange places, including homes of senior government officials.

Last month, the EFCC found about $1.25 million abandoned in large bags at the Kaduna airport.

Earlier, nearly $10 million was seized from the home of a former head of Nigeria’s National Petroleum Company, NNPC, in the northern state of Kaduna.

The EFCC also uncovered yet another unclaimed $1 million in two shops at a shopping mall in Victoria Island, Lagos.  

A new government initiative to reward whistleblowers is encouraging many Nigerians to reveal the secret locations of money stashed away by corrupt officials. The EFCC, Nigeria’s anti-corruption agency, has offered to give up to 5 percent of amounts recovered to the informants, whose identities it protects.

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Categories: Економіка

Atlantic Salmon Farms Shift to Open Seas, Trying to Shake Off Lice

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Atlantic salmon farming companies are designing huge pens to raise fish in the open seas in a radical shift from calm coastal waters where marine lice have slowed growth of the billion-dollar industry.

The drive for new designs by Norway, producer of 54 percent of all farmed Atlantic salmon in 2016, will have to cope with ocean storms that can rip cages and free thousands of fish.

Escapees disrupt natural stocks by breeding with wild cousins.

“The industry has to develop and to solve the environmental challenges it has, especially linked to salmon lice,” Norwegian Fisheries Minister Per Sandberg told Reuters, referring to parasites that often spread infections resistant to antibiotics.

One in five salmon farmed in Norway dies before reaching maturity, partly due to tiny blood-sucking lice that latch onto the outside of the pink fish.

Lice, also a problem in other countries, tend to concentrate in the more stagnant waters of Norway’s bays and fjords where farms are now based. A shift offshore would expose farms to ocean currents that should help to sweep away the lice larvae.

The Norwegian Directorate of Fisheries is seeking innovative fish farm designs, both for offshore and coastal waters, in a two-year drive open until November 2017. So far it has approved a handful and is reviewing about 40 others.

Many borrow ideas from the offshore oil and gas industry.

The lure of offshore pens is that they would open almost unlimited areas for fish farms beyond bays and fjords, attracting investors and transforming the global aquaculture industry.

Norway produced 1.1 million tons of salmon in 2016, more than double the output of number two producer Chile, and earned $7.6 billion in exports. Smaller producers include Britain, the Faroe Islands and Canada.

But Norway’s production, by companies including Marine Harvest, SalMar and Leroy Seafood, has been little changed since 2012 due to lack of space and disease, even as rising demand has pushed prices to record highs.

Storm risks 

“We’ll take the project that works best, has no salmon lice, the lowest cost, no escapes and is industrial,” Marine Harvest’s chief executive officer Alf-Helge Aarskog told Reuters of a range of designs the company has proposed.

Nets in coastal farms sometimes tear in storms, harming wild stocks from Scotland’s Spey River to Norway’s Alta River, and offshore farms will be exposed to far stronger winds and waves. Last year, 126,000 salmon broke out of Norwegian farms.

“Escaped fish mix with the wild salmon – that creates problems with genetics,” said Ingrid Lomelde, of the WWF Norway Farmed fish are bred to grow fast and fatter than their sleek wild cousins. Interbreeding could produce fish too weak, for example, to leap up waterfalls to reach spawning grounds.

Among approved designs, SalMar is building what it calls the “world’s first offshore fish farm” to start in late 2017 — a floating circular construction 110 metres (360 ft) across that looks like a drilling rig, apart from huge nets dangling below.

The 700 million Norwegian crown ($82 million) yellow and white steel construction is being built at a Chinese yard, and will be big enough to raise more than a million salmon.

“We’re starting to install the anchoring systems,” off the coast of mid-Norway, chief financial officer Trond Tuvstein said. “No one wants escapes,” he said.

In Chile, Felipe Sandoval, head of industry group SalmonChile, said the government wanted more research into farming in more exposed and offshore areas. “We will have to wait a bit to see how this takes off,” he said.

Most approved designs in Norway are still on the drawing board, such as a sealed 44-metre (144.36 ft) tall egg-shaped tank by Marine Harvest where the fish swim inside in seawater filtered to keep out lice, or a 400-metre long farm by Nordlaks shaped like a supertanker.

Egg

Marine Harvest hopes to start building an “Egg” prototype in mid-2017, CEO Aarskog said. The sealed design would be suited for calm waters in fjords and is favored by environmentalists and river owners as a way of isolating any disease.

If successful, “the technologies will allow aquaculture in more exposed areas globally” including for other types of farmed fish such as sea bass or bream, said Tore Toenseth, an analyst at SpareBank 1 Markets in Oslo.

Huge new cages able to withstand storms could be used anywhere, from Japan to the United States, he said.

But river owners say not enough is done to protect wild stocks by the expansion of farming.

“It’s a very vulnerable system,” said Erik Sterud, of the river owners’ association Norske Lakseelver, who estimates there are now just 500,000 wild salmon off Norway against half a billion farmed fish.

Companies are willing to invest hundreds of millions of crowns in the new technologies partly because Norway will award licenses to operate the new fish farms, almost for free.

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Princess Cruises Fined $40 Million for Water Pollution

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A federal judge in Miami fined Princess Cruise Lines $40 million Wednesday for illegally dumping oil waste into the Atlantic Ocean and Gulf of Mexico, and for falsifying records.

It is the largest such water pollution fine in U.S. history.

The Miami Herald newspaper says the British engineer who reported the dumping to the U.S. Coast Guard will get a $1 million reward.

According to the Herald, engineers aboard the Caribbean Princess in 2012 and 2013 were ordered to dump the oily water straight into the sea and avoid the ship’s filtration system, in order to save money. It said the ship’s two senior engineers falsified the vessel’s records.

The British engineer recorded the dumping on a cellphone.

Four other Princess ships also were involved in the illegal dumping off the East Coast, and near Florida and Texas.

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Finance Minister: Peru Economy to Recover in 2018, 2019 After Flood Damage

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Peru’s economy will recover in coming years with investment in construction after recent flooding, likely growing 4.5 percent in 2018 and 5 percent in 2019, Finance Minister Alfredo Thorne said on Wednesday.

Previously, the government had expected growth of 4.3 and 4.1 percent for the next two years.

The estimate for 2017 growth was lowered this month to 3 percent from 3.8 percent previously due to flooding.

“The shock will be temporary,” Thorne said in a presentation at Lima’s Chamber of Commerce.

The floods have damaged 6,000 kilometers (3,728 miles) of roads, destroyed thousands of houses and killed 106 people since December.

Peru’s economy, which has also been hurt by paralyzed infrastructure projects due to a corruption investigation involving Brazil’s Odebrecht, grew at its lowest rate in more than two years in February.

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Sleepy Pakistani Village Rises as China’s Gateway to Middle East

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Over the last six months, the skyline over the sleepy fishing city of Gwadar has been transformed by machines that dredge the Arabian Sea and cranes that set up shipping berths in what is projected to become Pakistan’s biggest international port.

Infrastructure developments have enabled the hammer-shaped Gwadar peninsula to emerge as the centerpiece of China’s determined effort to shorten its trade route to the Persian Gulf and obtain access to the rich oil reserves there.

A mini-“Chinatown” has appeared, with prefabricated living quarters, a canteen and a karaoke center. After hours, the workers have the grounds to play their favorite game, badminton.

A spokesman for the Chinese team in Gwadar said in an interview that his government had invited employment bids in China, then brought the workers here.

He proudly touted the successful test run conducted by China in November when it used Pakistan’s land route from Kashgar to Gwadar to transport a convoy of 60 containers for export to the Middle East and North Africa.

Prior to that, he said, China had sailed materials through the South China Sea and the Indian Ocean to reach Gwadar.

The Chinese propose to cut down that 12,000-kilometer sea route by about one-fourth once they adopt the land route from the northwestern province of Xinjiang to Gwadar.

So eager is China to save on distance, time and expense — and the challenge posed by the U.S. Navy in the South China Sea — that it has weathered Pakistan’s unstable law-and-order situation to build its economic corridor.

Small wonder that the Chinese spokesman omitted an incident — related by locals to VOA — that the test convoy came under fire in Hoshab, Baluchistan, despite protection from a special security force.

Since then, Pakistan has enhanced its 12,000-plus security force to protect the Chinese. That has turned Gwadar into a military zone, with strict checks of vehicles and ID cards, plus an encampment of intelligence officials.

Still, Baluch insurgents use attacks on “soft targets,” like laborers from other provinces, to drive away investors from the China Pakistan Economic Corridor. On April 5, as road workers from Sindh were gunned down in Kharan in targeted killings claimed by the Baluchistan Liberation Front, former army Col. Farooq Ahmed said suspicion fell on militants operating from Afghanistan.

The Chinese, for their part, have taken heart from the security provided by Islamabad to plan ahead. A prefabricated coal plant will be brought from China to Gwadar to fire up its energy needs. Moreover, China will finance Gwadar international airport, according to the spokesman.

Distances inside Pakistan have shortened as the Frontier Works Organization builds a 3,000-km network of roads funded by Chinese investment.

Symbolizing skepticism

Despite Pakistan’s ongoing military operation against the Taliban, sporadic terror attacks are the biggest hurdle to the country’s development. After 9/11, when Pakistan allied with the U.S. in combating terrorism in Afghanistan, militant organizations put down their roots and threatened the nation from inside.

As social indicators fell and Pakistan became one of the world’s most food-insecure nations, it opened its doors to China — one of America’s rivals — to help fight poverty, a key factor in fundamentalism and terrorism.

When U.S. envoy Nikki Haley recently spoke of nations that use their United Nations veto to stop non-state actors from being designated as terrorists, it was seen as a reference to China’s refusal to let Kashmiri militant Masood Azhar be so named. Pakistani analysts interpreted this to mean the U.S. would move closer to India, even while revisiting ties with Pakistan because of its key role in Afghanistan.

Now the road from Karachi to Gwadar is smooth and empty, with awe-inspiring, wind-carved hills and mysterious canyons that dip into golden sands that run for kilometers along the deep blue-green Arabian Sea. It has enabled locals to rediscover their country — even as some marvel at the speed of construction.

But in a country that suffers from grinding poverty, little industry and high unemployment, the benefits of China’s investment are still hard to sell to the average person.

Gwadar symbolizes the skepticism. A miniscule amount has been spent by Islamabad and Beijing on people’s welfare, including a vocational training center, a hospital and school. The peninsula’s natural beauty belies erratic electricity, scarce drinking water and lack of proper sewerage.

Gwadar Port Authority Chairman Dostain Jamaldini explains to delegations arriving daily from across the country that revenue generation is the key to uplifting the area.

He showed off a huge quadrangle in the center of Gwadar that “can even be seen on Google Earth.” There, he has recommended to Islamabad that a multipurpose lighthouse be constructed to guide incoming ships and generate revenue.

Until that happens, the fishermen who build wooden boats along Gwadar beach will likely lose their livelihood as their shanty homes are removed.

Already, the vacant plots in Gwadar’s Sinjhaar area overlooking the sea have been repossessed by the Pakistan Navy and earmarked for sale to military officials and politicians.

For the well-connected, a real estate boom is on the horizon. Trader Abbas Rashanwala said he waited for years for peace to come to Gwadar. Now his real estate business has taken off, with investors flocking in to buy land.

Many realtors are betting on Gwadar as on the stock market — making deals online or on the phone. Several sit in the Punjab, selling property they have never seen in Gwadar, all on speculation that prices will soon skyrocket.

Meanwhile, China’s investment in Gwadar is helping control maritime crime. Officials tell how traffickers from Africa and the Middle East used to dock on the beach at night to swap slaves for narcotics.

In February, 36 nations, including the U.S. and Russia, participated in the Pakistan Navy’s multinational patrolling of the Arabian Sea in a global recognition of China’s role in making the waterways safer.

Still, China’s emerging role in Pakistan has raised many questions. The most prominent criticism is that China will become Pakistan’s “East India Company” — a metaphor for the British empire’s plunder of India.

Notwithstanding the doomsayers, there also is a readiness to accept that development and peace are inextricably linked to Pakistan’s future.

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Categories: Економіка

Павлоград: за скоєння вибуху у багатоповерхівці чоловік отримав 15 років в’язниці

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У Павлоградському міськрайонному суді на Дніпропетровщині 19 квітня винесли рішення у справі про вибух у житловому будинку і вбивство жінки. Обвинуваченого у скоєнні вибуху та вбивстві засудили до 15 років в’язниці.

За інформацією суду, вирок набуде чинності за 30 днів, якщо його не оскаржать в апеляційному суді.

Свою провину обвинувачений частково визнав.

За даними суду, обвинуваченим у справі є 60-річний житель міста, колишній чоловік загиблої жінки Олександр Коломоєць. На початку судового процесу він звернувся до суду з проханням здійснювати слухання справи у закритому режимі й дозволу брати участь у засіданнях в режимі відеозв’язку, однак суд відхилив ці клопотання.

За інформацією правоохоронців, у ніч з 17 на 18 вересня 2016 року обвинувачений не тільки скоїв убивство дружини, нанісши їй 128 ножових поранень, а й влаштував вибух у 5-поверховому будинку, здійснивши пошкодження системи постачання побутового газу.

За даними слідчих, у результаті вибуху і пожежі в багатоквартирному будинку була зруйнована частина споруди, декілька квартир лишаються в аварійному стані, на реконструкцію будинку необхідно витратити понад 1,5 мільйона гривень.

Восени 2016 поліція відкрила кримінальне провадження через вибух у 5- поверховому житловому будинку Павлограда Дніпропетровської області. Як повідомили в обласному управлінні Нацполіції, вибуху передувало вбивство. На місці пожежі виявили тіло 53- річної жінки з численними ранами. Загибла була колишньою дружиною власника квартири, де стався вибух. Чоловіка затримали за підозрою в умисному вбивстві і порушенні вимог пожежної безпеки.

Водночас у Держслужбі з надзвичайних ситуацій уточнили, що внаслідок вибуху газоповітряної суміші з подальшим загоранням зруйновано 5 квартир. Міська рада Павлограда відселила мешканців пошкоджених квартир.

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Categories: Економіка

Trump Executive Order Makes It Harder to Hire Foreign Workers

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U.S. President Donald Trump on Tuesday signed an executive order aimed at making it harder for companies to hire temporary foreign workers.

The order, called “Buy American — Hire American,” will take initial steps to reform the H1-B visa program.

H1-Bs allow employers — mostly high-tech firms — to hire skilled foreign workers to work in the U.S. for three years. There are 85,000 slots available each year, 65,000 for applicants with bachelor’s degrees and 20,000 for those with master’s degrees or higher.

“We are going to use a tool you all know very well. It’s called the sledgehammer,” Trump said Tuesday during a speech at Snap-on Tools, a company in Kenosha, Wisconsin.

The administration will require companies to demonstrate that the visas are going only to the most highly skilled workers in their fields.

“They [H1-Bs] should be given to the most skilled and highest-paid applicants and not be used to replace Americans,” Trump said.

WATCH: H1-B Visas Let US Firms Hire Foreigners for Specialized Jobs

Open to abuse

The administration says the visas, which can be renewed once, have contributed to a slide in American wages; 80 percent of H1-B visa holders are paid less than the median wage in their fields.

Howard University political science professor Ron Hira said the Trump administration is right: “The laws are loose, and so what happens is it’s become a way for employers to bring in cheaper, indentured workers as opposed to filling those skills gaps. As a result, the program is oversubscribed, and it’s actually undercutting Americans.”

When the application season opened for H1-Bs this month, federal offices were quickly flooded. As in recent years, there were so many applications that the U.S. government stopped accepting them within a week. Visa winners will be chosen by a computer-generated lottery.

Hira also said the intent of the program is good in serving as a guest worker program for when there are shortages of American workers. What got in the way? Politics.

Companies are making so much money, he said, that they are able to influence Congress to prevent changes in the H1-B program. And it’s all legal.

Fixing H1-Bs

Hira said that if the sledgehammer seemed to be velvet-coated, that’s because the executive order is not really intended to change policy so much as to guide policy changes. Federal agencies will have to implement it.

“The idea behind the executive order is to make it merit-based, that the really highly skilled people get preference over the cheap labor that goes on,” Hira said.

Overwhelmingly, India has been the biggest recipient of H1-B visas. The Department of Homeland Security reports that 71 percent of H1-Bs went to Indians in 2015. China was a distant second with 10 percent of the visas.

India’s success is attributed to its huge outsourcing firms that submit thousands of applications every year, increasing their chances of winning the visa lottery.  

Outsourcing firms, which supply services to other companies, are controversial because they are not subject to a federal requirement that they not displace American workers if they pay the H1-Bs at least $60,000 a year.

Hira said the new policy might help high-tech American companies at the expense of the outsourcing firms that abuse the system.

But “expect the Indian government to lobby against the changes,” he predicted.

The executive order also called on all federal agencies to buy American. It established a 220-day review on waivers and exemptions to government “Buy American” rules.

VOA’s Mil Arcega contributed to this report.

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Silicon Valley Startups Turn to Chinese Backers for Funds

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When Mark Pavlyukovskyy, founder of a do-it-yourself computer kit maker, was looking for investors last year, he wanted someone who knew the Chinese market.

Turns out, Pavlyukovskyy didn’t have to go to Beijing or Shanghai. Chinese venture capitalists are everywhere in Silicon Valley.

Last year, Pavlyukovskyy, a Ukrainian-born American entrepreneur working in San Francisco, raised $2.1 million from nine investors, including a Chinese firm based in the Valley.

“We’re looking not just for financial capital, but interpersonal capital with expertise and knowledge of the education market in China,” said Pavlyukovskyy. His company, Piper, sells a $299 augmented reality computer kit that children assemble themselves. Now, Piper is in schools in Hong Kong. Over 150,000 kits have been distributed around the world.

For the past decade, Silicon Valley money flowed to China as the communist country opened its markets and companies sought to expand there. That cross-border investing reversed as Chinese companies started to look outside their borders for investment opportunities. While Chinese investors have made their impact felt in the U.S. real estate, energy and transportation sectors, it was only in recent years they turned to tech.

Chasing U.S. innovation

Now, Chinese investors are pouring money into Silicon Valley deals, where it might take longer to see a return on an investment than in commercial real estate but where the potential to strike it big is higher.

“This is the very beginning,” said David Cao, who came from Singapore as a programmer before founding F50, a full-service investment firm, in 2014.

Fueling the Chinese capital is a perception that the majority of innovation is still coming out of the U.S., and that China is playing catch-up, said Chris Evdemon, who in 2014 opened Sinovation, the U.S. arm of Chuangxin, one of China’s leading early-stage venture firms. There are now 38 startups in his portfolio, which includes firms specializing in internet-of-things, robotics and education technology.

“We thought we should put some capital to work and see if we can be a great go-to market,” said Evdemon.

Chinese investors, particularly traditional media groups, are interested in firms specializing in virtual reality and augmented reality technologies, which might enhance digital entertainment. Other areas of interest for Chinese backers include robotics, artificial intelligence and technologies that focus on the financial, health and education markets. There are now more than 30 Chinese incubators in Silicon Valley.

Strategic U.S.-developed tech

But this wave of Chinese investment has called into question whether advanced technologies that are seen as critical to U.S. strategic interests are, instead, going to a competitor. A recent Pentagon report raised concerns about whether the Chinese government and Chinese investors in Silicon Valley were gaining access to key technologies through these investments.

Those concerns did not gain much attention at a recent cross-border investment summit held by F50 in Menlo Park. Instead, investors talked about how Chinese investors have become more savvy, with an emphasis on working with Silicon Valley companies to test their ideas in the U.S. first, before thinking about the Chinese market.

“I don’t see any barriers anymore between the two ecosystems,” said Evdemon. “I’m enjoying seeing wall gardens disappear.”

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Trump Administration Seeks Tougher Stance On Buy & Hire American

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The Trump Administration says it is time for tougher enforcement of rules governing hiring certain foreign workers in the United States, and to review laws requiring U.S. government agencies to use American-made products. The president is scheduled to sign an executive order regarding “Buy American/Hire American” rules on Tuesday.

In a briefing for journalists, senior administration officials said lax enforcement and numerous legal loopholes mean American workers and companies lose jobs and business to foreign competition, which hurts the U.S. economy.

Government agencies are being directed to review their procurement practices and require that exceptions to the “buy American” rules be approved by the head of the agency.

Officials also said government procurement portions of existing trade agreements will be reviewed to see if U.S. companies get the same chance to sell products to the governments of our trading partners that foreign firms get in Washington.

Another review is aimed at rules governing visas issued to foreigners with certain skills, called the “H-1-B visa” program. The program is supposed to bring workers with skills that are scarce in the United States into the country. But Trump Administration officials say they are concerned that companies are hiring foreigners who do the same work as Americans at lower wages.

Government agencies are being directed to do “top to bottom” reviews of these rules and laws, and report problems and recommendations that may bring changes to laws and rules.

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‘The National’ Newspaper of Abu Dhabi Sees Layoffs after Sale

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A state-backed newspaper in the United Arab Emirates that was bought by an Emirati who oversees the English soccer club Manchester City is undergoing layoffs, those with knowledge of the firings said Monday.

They told The Associated Press that staffers at The National were informed Sunday they had been let go. They spoke to the AP on condition of anonymity for fear of repercussions.

 

It wasn’t clear how wide the layoffs were or what specific plans The National’s new owner had for the daily newspaper. Repeated calls to the newspaper rang unanswered Monday.

 

The layoffs come after months of turmoil at The National, which was founded in 2008 and staffed with top writers and editors from Western newspapers. Its owner, the state-backed firm Abu Dhabi Media, hoped it would become the Mideast’s standard for independent, hard-nosed newspapering.

 

But while the paper broke local stories on skyscraper fire safety and other issues, it largely stayed away from controversial topics in a country with strict laws governing speech.

 

International Media Investments, a subsidiary of Abu Dhabi Media Investment Corp. owned by Sheikh Mansour bin Zayed Al Nahyan of Manchester City, bought The National in November from Abu Dhabi Media. Sheikh Mansour’s media firm has a joint venture with Britain-based Sky to run the Arab satellite news channel Sky News Arabia.

 

In a statement, International Media Investments said: “The National is putting together its team, made of existing and new talent,” and will undergo “a digital transformation while retaining its print product.” It answered no questions from the AP about the layoffs.

 

Although the newspaper sale has yet to finalize, staffers had to reapply for jobs at the paper. All this comes as low global oil prices have pinched the economy of the United Arab Emirates, a federation of seven sheikhdoms on the Arabian Peninsula.

 

Sheikh Mansour is a member of the ruling family of Abu Dhabi, the UAE’s oil-rich capital. He also serves as a deputy prime minister and minister of presidential affairs.

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The Long, Rough Ride Ahead for ‘Made in America’

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Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

But it will be a long ride before it can stamp its products “Made in USA.”

The loss of nearly one out four U.S. factories in the last two decades means parts for its bike frames and engines must be purchased in China, where the manufacturing supply chain moved years ago.

“There’s just no way to source parts in America right now,” said Monster Moto Chief Executive Alex Keechle during a tour of the company’s assembly plant. “But by planting the flag here, we believe suppliers will follow.”

Monster Moto’s experience is an example of the obstacles American companies face as they, along with President Donald Trump, try to rebuild American manufacturing. U.S. automakers and their suppliers, for example, have already invested billions in plants abroad and would face an expensive and time-consuming transition to buy thousands of American-made parts if President Trump’s proposed “border tax” on imported goods were to become law.

When companies reshore assembly to U.S. soil – in Monster Moto’s case that took two years to find a location and negotiate support from local and state officials – they are betting their demand will create a local supply chain that currently does not exist.

For now, finding U.S.-based suppliers “remains one of the top challenges across our supplier base,” said Cindi Marsiglio, Wal-Mart Stores Inc.’s vice president for U.S. manufacturing and sourcing. Wal-Mart partnered with Monster Moto and several other U.S. companies in a drive to increase spending on American-made goods by $250 billion by 2023 in response to consumer demand for American-made goods.

Their experience has shown Americans’ patriotic shopping habits have limits, namely when it comes to price.

Take Monster Moto’s bikes, which sell for between $249 to $749. Keechle, the CEO, says he can’t raise those prices for fear his price sensitive prospective customers will turn to less expensive rivals made in China.

“Consumers won’t give you a free pass just because you put ‘Made in USA’ on the box,” Keechle says. “You have to remain price competitive.”

Keeping a sharp eye on labor costs in their factory is one thing these U.S. Manufactures can control. They see replacing primarily lower-skilled workers on the assembly line with robots on American factory floors as the only way to produce here in a financially viable, cost-competitive way. It’s a trend that runs against the narrative candidate Donald Trump used to win the U.S. presidency.

 

Since taking office, Trump has continued promises to resurrect U.S. manufacturing’s bygone glory days and bring back millions of jobs. On March 31, Trump directed his administration to clamp down on countries that abuse trade rules in a bid to end to the “theft of American prosperity.”

But it’s more complicated on the ground for companies like Monster Moto.

“It’s almost as if people think you can just unplug manufacturing in one part of the world and plug it in to the U.S. and everything’s going to be fine,” said David Abney, Chief Executive Officer of package delivery company United Parcel Service Inc., which helped Monster Moto reconfigure its supply chain to bring its Chinese-made parts to Ruston.

“It’s not something that happens overnight,” he said.

A White House official said that the Trump administration’s efforts to encourage manufacturers to reshore production will be focused on cutting regulations and programs to provide new skills to manufacturing workers.

“We recognize that the manufacturing jobs that come back to America might not all look like the ones that left,” a White House official said, “and we are taking steps to ensure that the American workforce is ready for that.”

Making robots great again

In Monster Moto’s cavernous warehouse in Ruston, boxes of imported parts that are delivered at one end then become bikes on a short but industrious assembly line of a few dozen workers.

A solitary, long-bearded worker by the name of Billy Mahaffey fires up the bikes to test their engine and brakes before a small group of workers puts them in boxes declaring: “Assembled in the USA.”

Helped by that label, Monster Moto has experienced a recent boom in demand from major customers that include Wal-Mart. The company expects to double production to 80,000 units and increase its assembly workers — who make $13 to $15 an hour — to 100 from around 40 in 2017.

The most likely components Monster Moto could produce in America first are black, welded-metal frames for bikes and go-karts, but they would have to automate production because human welders would be too expensive.

 

“We can’t just blow up our cost structure,” said Monster Moto President Rick Sukkar. “The only way to make it work in America is with robotics.”

The same principle applies for much larger manufacturers, such as automotive supplier Delphi Automotive PLC’s.

Chief Financial Officer Joe Massaro told analysts in February that 90 percent of the company’s hourly workforce is in “best-cost countries.”

When asked about shifting production to the United States from Mexico, Massaro said depending on what happens to trade rules “it would have to be much more of the sort of the automated type manufacturing operations just given… the labor differential there.”

That trend is already showing up in data compiled by Economic Policy Institute, a Washington-based think tank.

According to senior economist Rob Scott, not only did America lose 85,000 factories, or 23.5 percent of the total, from 1997 to 2014, but the average number of workers in a U.S. factory declined 14 percent to 44 in 2014 from 1997. According to Scott, much of the decline in workers was due to automation.

“We’re going to see more automation in this country because it makes good sense economically for every company,” said Hal Sirkin, a managing director at the Boston Consulting Group. “You can spend a lot of time bemoaning it, but that’s not going to change.”

Manufacturers say automated production requires fewer, but more skilled workers such as robot programmers and operators.

The National Association of Manufacturers (NAM) estimates because of the “skills gap” there are 350,000 unfilled manufacturing jobs today in a sector that employs over 12 million people.

In Ruston, Mayor Ronny Walker bet on Monster Moto by guaranteeing the company’s lease because he wants to diversify the city’s economy, and envisions suppliers setting up alongside Monster Moto’s assembly plant.

“Could it take a long time to bring manufacturing back here?

Sure,” he says. “But you have to start somewhere.”

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China’s Economy Gains Steam; 1Q Growth Fastest Since 2015

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China’s economic recovery is gaining traction, with growth rising to its fastest pace in over a year in January-March.

The 6.9 percent annual pace of expansion for the world’s second-largest economy, reported Monday, surpassed economists’ forecasts and was an improvement from 6.8 percent growth in the last quarter of 2016.

Growth last was that strong in July-September of 2015.

Analysts said government spending and a property boom spurred by easy credit were the main factors helping to driving stronger demand.

China saw its slowest growth in nearly three decades in 2016, at 6.7 percent. The official full-year economic growth target for 2017 is 6.5 percent.

“Currently, China’s economy is demonstrating good signs of pickup in growth, overall price stability, expansion in employment and improvement in the international balance of payments,” Mao Shengyong, a spokesman for the National Bureau of Statistics, told reporters in Beijing.

Fears of being dragged into a trade and currency war with the U.S. have abated after U.S. President Donald Trump toned down his previously antagonistic comments against Beijing.

A summit earlier this month with Chinese President Xi Jinping ended calmly, and the U.S. Treasury Department did not label China a currency manipulator in its latest assessment.

During the first quarter, investment in fixed assets such as factories expanded 9.2 percent from a year earlier, while retail sales grew 10 percent. Industrial production rose 6.8 percent, including a stronger-than- expected 7.6 percent year-on-year gain in March.

Although exports have also shown sharp improvement, strong lending and investment figures suggest Beijing is relying on its traditional strategy of powering growth through government stimulus. China’s leaders have been trying to shift to an approach based more on consumer demand but tend to open the spending and credit taps at times when growth appears to be slowing too much.

“The question we need to ask is whether this investment-led model is sustainable as the authorities have trouble taming credit,” said Raymond Yeung and David Qu, economists at ANZ.

The latest figures indicate China’s economy is on track to meet its official growth target — a good sign for China’s communist leaders, who don’t like surprises and are preparing for a twice-a-decade party congress in the autumn to appoint new leaders.

“The 6.5 percent target this year, you could say it’s more important than ever, because of the political reshuffle later this year,” said Amy Zhuang, chief Asia analyst at Nordea Markets. “At least being able to maintain the stability in growth is very, very important for Beijing.”

On a quarter-to-quarter basis, which is how other major economies report data, the economy lost steam, expanding just 1.3 percent. That’s slower than 1.7 percent in the fourth quarter of 2016.

The economists at ANZ said such figures should be viewed cautiously because they might reflect changes in how the government made adjustments for seasonal factors.

Economists say they expect the boost from the government’s policies and the property boom to persist for a few more months before fading later in the year.

Real estate plays an outsize role in fueling growth in the wider Chinese economy by spurring knock-on demand in the manufacturing and service sectors.

House prices will likely start cooling this year as tighter restrictions finally kick in, but Beijing will probably take steps to offset that decline with more stimulus to meet its annual growth target, Zhuang said.

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Categories: Економіка

Вартість випікання паски у 2017 році зросла на третину – Мінекономрозвитку

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Вартість випікання великодньої паски у 2017 році зросла порівняно з минулим на 35,3%, або до 30 гривень. Про це повідомляє Міністерство економічного розвитку і торгівлі України (МЕРТ) на своїй сторінці у Facebook, оприлюднивши так званий «Індекс паски».

«Напередодні Великодніх свят наша команда аналітиків вже вдруге поспіль вирішила дослідити динаміку вартості випікання святкової паски в 2017 році порівняно з 2016 роком. В ході дослідження ми виявили, що випікання паски в домашніх умовах коштуватиме 29,81 гривні, що на 35,3% дорожче, ніж у 2016 році», – говориться у повідомленні.

У міністерстві вказали, що ціни зросли майже на всі інгредієнти. Найбільше, на 34%, подорожчало вершкове масло. Воно ж найсуттєвіше вплинуло на зростання кінцевої вартості домашньої паски, оскільки частка вершкового масла становить близько 30% її вартості.

Зросли також ціни на борошно, молоко, родзинки, сіль, дріжджі, олію, яйця та цукор.

У повідомленні вказується, що, згідно з консенсус-прогнозом Мінекономрозвитку, інфляція в 2017 році утримається на рівні 11% (грудень 2017 до грудня 2016).

У міністерстві звернули увагу на те що так званий «індекс паски» не є офіційним макроекономічним показником, усі розрахунки в ньому приблизні, здійснені на основі моніторингу Державної служби статистики цін на соціально значущі товари та експертної оцінки Мінекономрозвитку.

Національний банк України прогнозує інфляцію на кінець 2017 року на рівні 8%.

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Employers Look to Fill Seasonal Jobs; Advocates Look to Protect Workers

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You may have noticed: Much of the recent anti-immigration rhetoric in Washington most loudly comes from factions on the political right: H1B, H2B, it’s all about protecting American jobs.

But every step of the way, progressive groups — while pro-immigrant — are just as critical of foreign worker visas. Federal regulations on the books, they argue, are inherently insufficient to protect visa holders from abuse, whether through unwarranted recruitment fees, misrepresentation of job requirements, fraud or intimidation.

The issue plagues potential recruits, but also well-meaning businesses that can’t find enough Americans willing to take seasonal jobs. In Cape Cod, Massachusetts and other areas of the country whose economic models are centered on five-to-six-month tourist seasons, the work of H2B visa-holders becomes essential to business owners.

Employers worry, too

Tyler Hayes, vice president of Cape Cod Restaurants, says he is fortunate that his seasonal foreign workforce, mainly from Jamaica, has created a “family atmosphere” during his 20-year tenure with the company.

“Now, their children are coming in, working for us,” Hayes said.

But while Hayes can only point to the well-being of his own workforce, he acknowledges that at least in recent years, abuse of workers has not been inconceivable.

“There used to be these companies that would send out these big petitions,” Hayes recalled. “They bring in 100 or 200 people, get them in the country and then farm them out.”

In response, the U.S. Department of Labor (DOL) and Department of Homeland Security (DHS) cracked down on abuse within the H2B system in 2015, both in order to prevent the exploitation of workers and to ensure U.S. workers’ awareness of available jobs.

Are regulations enough?

Elizabeth Mauldin, policy director at Centro de los Derechos del Migrante, Inc. (CDM) — the Center for Migrant Rights — calls those protections basic, including the right to receive a contract before entering the U.S. and protection from being charged a recruitment fee.

But many aspects of those existing regulations, she argues, are difficult to ensure, absent greater transparency in the recruitment process.

“It’s impossible to enforce a ban on charging workers fees,” Mauldin told VOA. “When workers are charged fees upfront, they are vulnerable to the same type of economic coercion across the board.” As a result, she notes, foreign workers become susceptible to wage theft and other abuses, regardless of their visa category.

Afraid to report

A 2013 report issued by CDM, whose findings were based on a survey and in-depth interviews with hundreds of H2B workers, found that 58 percent of respondents reported paying illegal recruitment fees, while 10 percent reported recruitment fraud — having paid a fee for a nonexistent job.

While there are mechanisms in place for foreign workers to report abuse, Mauldin argues that the disincentives are often too great.

“[Abusive employers] will say, at the end of the season, ‘If you pay those fees, then we will be more likely to recruit you in the future,’ or ‘If you don’t report these violations, then our recruiter will choose you again next year,’” Mauldin said.

Jane Nichols Bishop, founder and president of Peak Season Workforce, a family-run company that helps Cape Cod-area businesses secure H2B visas, says the mechanisms in place to prevent exploitation, including audits by the Department of Labor, have largely worked. But in cases where they do not, she says it’s in everyone’s interest that the infractions are reported.

“If there are abuses, we would like to see them caught,” Nichols said. “They give everyone who does this and who works at this very successfully a very bad name.”

Workers empower themselves

Despite ongoing reports of abuse nationwide, there is some hope for affected foreigners outside of federal regulations, thanks to the internet. A bilingual workers’ rights initiative, which Mauldin calls the Yelp for migrant workers, allows workers to review recruiters and share their experiences, and create a self-empowering community in the process.

 

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Categories: Економіка

New Kabul Coffee Shop Aims for Success in Tea-dominated Afghanistan

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Steeped in centuries of seemingly impenetrable tea tradition, Afghanistan’s capital is getting a little coffee buzz.

Nargis Aziz Shahi says business has been increasing day by day since she opened iCafe a couple of weeks ago. Looking a little like a brick-walled Starbucks with a distinctively homey Afghan feel, it’s attracting a mostly youthful clientele drawn by free internet service and books to peruse over a cup or two.

“There were three key objectives that led me open the cafe: 1) to introduce coffee to Afghans who mostly don’t know coffee and its taste and benefits; 2) to provide a place for our youth to carry out social activities; and 3) to provide job opportunities for young people,” Shahi told VOA’s Afghan service.

Tea came to Afghanistan early

Afghanistan was introduced to tea early because of its location on ancient trade routes. The Chinese traded silk and tea for other commodities. Tea became part of the country’s hospitality for guests. Just about every family has its own recipe.

Today, Afghanistan is the world’s largest tea consumer, with each person consuming an average of almost 4.5 kilograms — more than 1,500 cups — per year in 2012. By comparison, the U.S. ranked 72nd at 0.4 kilograms per person.

Only the Russian Federation and Britain, with much larger populations, import more tea.

Coffee culture gets a start

Dr. Nabi Misdaq, adviser to President Ashraf Ghani, has visited iCafe. He regards coffee drinking as a new, enlightening culture in Afghanistan.

“It is a good beginning,” Misdaq said. “It is a profitable business, because many young people come here to read books and exchange ideas. I am sure that this will also lead to the opening of new shops.”

The cafe also serves as a place for young Afghans to carry out social and cultural activities. They come to iCafe to attend literary programs and poetry contests.

The female customers say there are few other places where they can get together and entertain themselves, but they maintain that they come to the shop to relax and enjoy.

“I am very happy that we have a coffee shop in Kabul,” said customer Samira Seerat. “It is a very good place for women to visit. There are in fact no appropriate places for women in Kabul, and Afghanistan as a whole, to visit, because our people believe that women cannot go to restaurants.”

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Categories: Економіка

Will Robots Replace Human Drivers, Doctors and Other Workers?

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The impact of automation on U.S. jobs is open to debate. Robots have displaced millions of manufacturing workers, and automation is getting cheaper and more common, raising concerns it will eventually supplant far more workers in the services sector of the economy, which includes everything from truck driving to banking. 

University of Virginia Darden School of Business Professor Ed Hess says we are just starting to see automation’s impact. “It is going to be broad and it is going to be deep,” he said, adding that “tens of millions” of jobs could be at risk.

Data from the Bureau of Labor Statistics show 5 million U.S. manufacturing jobs have disappeared already.

While some politicians blame trade for the job losses, most economists say automation is mainly to blame as robots do routine factory tasks previously done by humans. 

Hess calls self-driving cars and trucks a threat to millions of human jobs, and says fast-food workers are also vulnerable, as companies install electronic kiosks to take restaurant orders. McDonalds says displaced workers will be reassigned to other tasks.

The professor says research shows nearly half of U.S. jobs could be automated, including retail store clerks, doctors who scan X-rays for disease, administrative workers, legal staffers, and middle managers.

Future of jobs

Starting more than a century ago, advancing technology changed the United States from an agrarian to a manufacturing economy. Displaced farm hands eventually found factory work, but the transition took years. This new transition may also take a time because, Hess says, “We’re not going to anywhere produce the number of jobs that we automate.”

But 50 years of experience in banking shows that while automation may change the industry, it does not necessarily end jobs for humans. 

The first Automatic Teller Machines, or ATMs, were installed 50 years ago, and there are now 420,000 in the United States. International Monetary Fund analysis shows the number of human tellers did not drop, but rose slightly.

“Humans were doing mostly service and routine types of tasks that could be converted into more automated tasks,” Tremont Capital Group’s Sam Ditzion said. But “the humans then became far more valuable in customer service and in sales in these branches.”

In a Skype interview, Ditzion said that while automation can be “scary,” the oversight of ATMs created new kinds of work for “tens of thousands of people.”

Automation grows

A report by Redwood Software and the Center for Economics and Business Research (CEBR) says surging investment and falling prices will help robotics grow.

Redwood’s software handles business processes that are repetitive, rule-bound and tedious.

CEBR Economist David Whitaker says as growing fleets of robots take over mundane tasks, higher productivity could bring higher wages for some human workers. He says people who want to stay employed must hone skills that robots can’t handle, such as unpredictable work or the need for an emotional human connection.

One example, according to Alex Bentley of Blue Prism software, is a program that helps law firms examine visa applications. The robot enters data but gets help from a human partner with problems such as missing information. Bentley says some human jobs have been lost, but in other cases displaced workers move within the firm to new work, particularly jobs that are “customer-centric.”

U.S. Senator Chris Coons says Germany and other nations use training programs to help their citizens get and keep jobs in a changing economy. The Democrat says America’s competitors invest six times what the U.S. does in skills development and workforce training, while Washington has slashed funding for such programs. Coons and a Republican colleague, Senator Thom Tillis, are seeking more help for schools, companies, workers and government agencies operating programs to upgrade the workforce.

New opportunities

While workers need to make some changes, philosopher and professor Ed Freeman of UVA’s Darden School of Business says companies also need to rethink their basic purpose. He says businesses must do more than just maximize value for shareholders.

“I need red blood cells to live,” he said. “It doesn’t follow that the purpose of my life is to make red blood cells. Companies need profits to live, it doesn’t follow that the purpose of a company is to make profits. We have to think through this idea about what purpose is in business.”

Freeman says he is “optimistic” because many jobs, such as creating applications for smartphones that would have been unimaginable a few years ago, are creating thousands of opportunities. He is also encouraged by his many students who, he says, bring new ideas, passion and energy to the task of starting businesses that will create new kinds of jobs.

Freeman is convinced that the problem isn’t the tsunami of lost jobs, it is the lack of “really good ideas” for creating a safety net for people who will lose jobs to automation.

Many experts worry about growing levels of automation — particularly advanced forms known as artificial intelligence — hurting employment for U.S. workers.

But U.S. Treasury Secretary Steven Mnuchin says it will be “50 or 100 years” before artificial intelligence takes American jobs. In an interview with Mike Allen of AXIOS, Mnuchin said, “I think we are so far away from that, [it is] not even on my radar screen.”

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Will Robots Take More Jobs From Humans?

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Robots have displaced millions of manufacturing workers, and automation is getting cheaper, more capable, and far more common in the much-larger services sector. This area includes everything from truck driving to banking and has far more jobs than factories had. VOA’S Jim Randle reports that one expert says “tens of millions” of jobs could be at risk, but others say the picture is more complex, and less grim.

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No US Trading Partners Manipulate Currency, Trump Administration says

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U.S. President Donald Trump’s administration declined to name any major trading partner as a currency manipulator in a highly anticipated report on Friday, backing away from a key Trump campaign promise to slap such a label on China.

The semi-annual U.S. Treasury currency report did, however, keep China on a currency “monitoring list” despite a lower global current account surplus, citing China’s unusually large, bilateral trade surplus with the United States.

Five other trading partners who were on last October’s monitoring list – Japan, South Korea, Taiwan, Germany and Switzerland – also remain on the list, ensuring that the Treasury would apply extra scrutiny to their foreign exchange and economic policies.

The Treasury report recognized what many analysts have said over the past year, namely that China has recently intervened in foreign exchange markets to prop up the value of its yuan currency, not push it lower to make Chinese exports cheaper.

Foreign exchange experts told Reuters last week that a manipulator label was unlikely for Beijing.

Trump, who on the campaign trail blamed China for “stealing” U.S. jobs and prosperity by cheapening its currency, repeatedly promised to label the country as a currency manipulator on “day one” of a Trump administration – a move that would require special negotiations and could lead to punitive duties and other action.

The report did call out China’s past efforts to hold down the yuan’s value, saying this created a long-term “distortion” in the global trading system that “imposed significant and long-lasting hardship on American workers and companies.”

The Treasury also warned that it will scrutinize China’s trade and currency practices very closely and called for faster opening of China’s economy to U.S. goods and services and a shift away from exports to more domestic consumption.

“China will need to demonstrate that its lack of intervention to resist appreciation over the last three years represents a durable policy shift by letting the RMB (yuan) rise with market forces once appreciation pressures resume,” the report said.

The report shows the Trump administration is taking an approach to foreign exchange based on data rather than politics, said Nathan Sheets, a former U.S. Treasury under secretary for international affairs during the Obama administration.

“This isn’t the report that Donald Trump had in mind on Nov. 8,” said Sheets, who is now with the Peterson Institute for International Economics in Washington. “But it lays out legitimate complaints. It’s a clear statement to the Chinese that they need progress.”

The Treasury did not alter its three major thresholds for identifying currency manipulation put in place last year by the Obama administration: a bilateral trade surplus with the United States of $20 billion or more; a global current account surplus of more than 3 percent of gross domestic product, and persistent foreign exchange purchases equal to 2 percent of GDP over 12 months.

No countries were determined to have met all three of these criteria, but Japan, South Korea, Taiwan, Germany and Switzerland all met two of them.

The Treasury warned Japan against resuming currency interventions, saying that these “should be reserved only to very exceptional circumstances with appropriate prior consultations, consistent with Japan’s G-7 and G-20 commitments.”

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