Leaders of development agencies say the fight against poverty needs a more aggressive focus on the health and education of the young and vulnerable. NGO and development officials spoke at the Milken Institute Global Conference in Los Angeles recently, where World Bank President Jim Yong Kim warned social unrest will spread without a business-like approach to philanthropy. Mike O’Sullivan has more from Los Angeles.
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Month: May 2018
President Donald Trump says he is looking for a way to let a Chinese technology firm “get back into business fast” after a U.S. trade ruling severely crippled the company.
“Too many jobs in China lost,” Trump tweeted Sunday, days after ZTE announced it had ceased “major operating activities.”
The U.S. had cut off exports of U.S.-made parts to ZTE — more than 25 percent of the components ZTE needs to build its wireless stations, optical fiber networks and smartphones.
The U.S. cutoff came after ZTE was, in the words of one expert, “caught red-handed” putting the U.S. technology into products and selling those goods to countries under a U.S. trade embargo, including Iran and North Korea.
The U.S. fined ZTE $1.2 billion last year. But the U.S. said last month ZTE lied about punishing the employees believed to be involved in skirting the sanctions, paying them bonuses instead.
The Commerce Department cut off ZTE’s access to U.S. components until 2025, forcing it to shut down operations at its factory in Shenzhen.
Trump has often complained about China stealing U.S. jobs. But he tweeted he is working with Chinese President Xi Jinping to ease the economic fallout at ZTE and ordered the U.S. Commerce Department “to get it done!”
“The president’s tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic trade and investment relationship between the United States and China,” White House Deputy Press Secretary Lindsay Walters said Sunday. “The administration is in contact with China on this issue, among others, in the bilateral relationship.”
The U.S. and China are due to hold their latest round of trade talks this week in Washington.
“China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries,” Trump said in another tweet. “But be cool, it will all work out!”
Douglas Jacobson, an attorney who represents suppliers who do business with ZTE, told VOA that Trump’s order to help ZTE is a stunning decision and one bound to make U.S. law enforcement officials unhappy by going over their heads.
“This has caught all of those in the exports and sanctions world certainly by surprise and with some degree of shock and awe,” Jacobson said. “This is unprecedented that the president of the United States would intervene in what really is a law enforcement case.”
But Jacobson said the ZTE matter is not a sign of a general thaw in trade tensions between the U.S. and China, including the recent tit-for-tat tariffs.
Jacobson said he believes Trump may be willing to make a concession on China in exchange for China’s help with North Korea.
Steve Herman, Ken Bredemeier, Ira Mellman and Kenneth Schwartz contributed to this report.
A koala hospital and new wildlife reserves are the focus of one of Australia’s boldest plans to protect the vulnerable marsupial. Almost 25,000 hectares of state forest will be set aside for koalas in New South Wales state, which will also set up a new clinic north of Sydney to provide specialist care for sick and injured animals.
Koalas are officially listed as vulnerable to extinction in New South Wales. The state government is to spend $34 million on a range of measures to protect the iconic marsupial.Special reserves will be set up where the animals will be able to breed freely.
The koala population in New South Wales has fallen by a quarter over the past two decades. It is estimated there are 36,000 koalas left in the state.Their numbers have also fallen in other parts of Australia.
The animals face various threats, including a loss of habitat due to land-clearing, attacks by dogs, bushfires, heatwaves and road accidents. A sexually-transmitted disease — chlamydia — is also harming the health of many koalas.
Special measures will also be put in place to help drivers avoid koalas that stray onto highways, including better signs. Tunnels and specially-made bridges have also allowed wildlife to traverse roads while avoiding cars and trucks.
New South Wales environment minister Gabrielle Upton hopes to set up a network of koala and wildlife hospitals to help injured animals.
“This is so there are places that we can have resident expertise in one placein places where we know that koala populations are present and need to be sustained and therefore increased over time. We are going to trial chlamydia vaccinations. Chlamydia is a disease that impacts them most severely on the north coast in New South Wales. There are some really practical parts of this package that address some of the roadkill hot-spots,” said Upton.
“We have had some success with underpasses and overpasses in areas where they know they have core habitat. We need to ensure we have the right road signs, the right fencing.”
The new koala clinic will be set up in Port Stephens, north of Sydney. It will join an existing hospital in the regional town of Port Macquarie that began treating injured marsupials in 1973.
Conservationists have welcomed the new facility but argue that the New South Wales state government’s multi-million dollar plan does not address the number one threat to koalas – land clearing and logging.
The koala lives in trees and has large furry ears, sharp claws adapted for climbing and no tail. It features in many Aboriginal stories of creation and is considered a totemic species.
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There’s a push to level the playing field for women in India, where women account for 42 percent of university graduates but only 24 percent are hired as entry level professionals. Of these, 19 percent are likely to reach senior level management. To make matters worse, the number of women who leave the work force is also higher than men. As Ritul Joshi reports, a specially designed management course for women in New Delhi is teaching them to make their way in a male dominated work force.
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Scientists at Rockefeller University in New York discovered that the brains of songbirds use a similar process as humans do when learning to make sounds. And, as a result, VOA’s Deborah Block reports, the research could lead to treatments for people with speech impediments.
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NASA is planning to send a tiny autonomous helicopter to Mars on its next rover mission to the red planet.
The space agency announced Friday that the helicopter will be carried aboard the Mars 2020 rover as a technology demonstration to test its ability to serve as a scout and to reach locations not accessible by ground.
The helicopter is being developed at NASA’s Jet Propulsion Laboratory in Southern California.
The craft weighs less than 4 pounds (1.8 kilograms), has a fuselage about the size of a softball and twin, counter-rotating blades that will spin at almost 3,000 rpm — a necessity in the thin Martian atmosphere. Solar cells will charge its lithium-ion batteries.
Flights will be programmed because the distance to Mars precludes real-time commands from Earth.
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Aardvarks are not the most attractive animals. They have rabbitlike ears, a kangaroo tail and a nose like a pig. But they are mammals, and that means they feed their babies milk. At the Cincinnati Zoo in Ohio, an aardvark mother is contributing to the largest collection of exotic animal milk in the world. As Faiza Elmasry tells us, the milk is used to learn about mammal nutrition and help create milk alternatives for animal babies that need to be hand-raised. VOA’s Faith Lapidus narrates.
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Electric-powered ground transport is slowly but steadily taking over from one based on fossil fuels. Electric cars, buses, bikes, scooters, even electric skateboards are growing more common on streets around the world. The next step is electric aviation, and airplane manufacturers are eyeing this potentially very lucrative market. VOA’s George Putic reports.
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When Facebook recently said it would allow outside reviewers inside its platform to look for signs of racial or political bias, civil liberties and human rights activists politely applauded.
For years, activists have called on tech companies to undergo assessments of how their policies affect people, both in the U.S. and globally. The companies have long rejected those audits as unnecessary.
But now Facebook is inviting outsiders in to look at allegations of racial and political bias.
“It’s better than nothing,” Rebecca MacKinnon said of the Facebook audits. She is director of Ranking Digital Rights a project that evaluates 22 tech and telecommunications firms annually in areas such as privacy, expression and governance.
“There’s increasing pressure on them to do this kind of thing,” MacKinnon added.
Facebook has faced criticism that it has allowed advertisers to use racial and ethnic profiles to target job and housing ads. American political conservatives have complained that Facebook has removed or taken down legitimate content because of its liberal bias, something the company has denied.
Both issues came under scrutiny following the 2016 U.S. election, but activists say the company’s focus on issues mainly concerning American users is overshadowing Facebook’s bigger problems with the platform abroad.
“The audits that Facebook is doing in the U.S., while welcomed, are very U.S.-centered,” said Arvind Ganesan, director of Human Rights Watch’s business and human rights division. “That’s really a response to domestic pressure.”
Call for global assessments
Critics say Facebook’s bias problems do not stop at the U.S. border. They point to the role that the platform is alleged to have played in incidents of mass violence, such as the persecution of ethnic Rohingya in Myanmar in recent years or sectarian violence in Sri Lanka.
The United Nations reported that in the case of violence in Myanmar, Facebook “substantively” contributed to the level of conflict.
Facebook’s News Feed, which highlights content of interest to a user based on the person’s friends and preferences, has also been accused of reinforcing false or inflammatory stories that go viral. That can help extreme viewpoints get in front of a mainstream audience.
Critics say the company is only starting to come to grips with the issue.
“There needs to be an honest, candid, comprehensive assessment,” said HRW’s Ganesan. “What is the panoply of Facebook’s impact?”
Transparency as industry trend
Self-assessments are nothing new for tech firms. Starting with Google in 2010, tech companies began publishing transparency reports that provide snapshots of how governments have turned to firms for user data or issued takedown notices because of copyright infringement or other reasons.
More than 60 companies regularly file transparency reports, according to Access Now, a digital rights group in New York.
Eleven companies, including Google and Facebook, undergo outside assessments every two years by the Global Network Initiative, a nongovernmental organization that looks at how companies are responding to government requests.
In its recent assessment, Ranking Digital Rights, which is a nonprofit research initiative affiliated with the nonpartisan New America Foundation think tank, gave low marks to Facebook for disclosing less information than other tech firms about how it handles data that can be used to identify, profile or track users.
Apple earned the greatest year-over-year score improvement of any company because it “strengthened its public commitment to protecting users’ privacy as a human right,” the report said.
How effective these assessments are in spurring companies to change is unclear. But company-run reports and outside audits can help find and measure problems, human rights advocates say.
“We call on Facebook to engage with stakeholders wherever it impacts human rights — the burden extends globally,” said Peter Micek with Access Now.” It doesn’t make sense from a human rights perspective to treat the U.S. exceptionally.”
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Senior officials from the United States, Canada and Mexico ended the latest round of talks on the North American Free Trade Agreement without any major breakthroughs on how to renegotiate the deal.
U.S. Trade Representative Robert Lighthizer said Friday after a week of talks in Washington that the United States will continue to work with its partners to update the 1994 trade pact.
“The United States is ready to continue working with Mexico and Canada to achieve needed breakthroughs on these objectives,” he said.
The talks involved all three of the top officials in the NAFTA negotiations: Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo.
The talks have come under increased pressure to produce a deal quickly after U.S. House Speaker Paul Ryan said this week he would need to be notified of a new agreement by May 17 to give the current Congress a chance to pass it this year.
Guajardo said Friday that revising the deal will take time. “We’re not going to sacrifice the quality of an agreement because of pressure of time. We’ll keep engaged,” he said.
Freeland echoed those comments. “The negotiations will take as long as it takes to get a good deal.”
She told reporters that there was a long “to-do” list to finish a renegotiation of NAFTA, but said the talks were making progress.
U.S. President Donald Trump again heaped criticism on NAFTA during a meeting with auto executives Friday at the White House. “NAFTA has been a horrible, horrible disaster for this country. And we’ll see if we can make it reasonable,” he said.
Trump has long criticized NAFTA, blaming it for the loss of millions of manufacturing jobs that hurt the U.S. economy.
The auto industry has featured prominently in the NAFTA talks, with one of the key sticking points being a U.S. demand to increase the U.S.-made components in vehicles that receive duty-free status in NAFTA.
Trump praised Fiat Chrysler chief Sergio Marchionne on Friday for plans to move production of its popular Dodge Ram truck back to the United States from Mexico.
“Right now, he’s my favorite man in the room,” Trump said.
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America will not be “cheated” by foreign countries that “extort” unreasonably low drug prices from U.S. companies, declared President Donald Trump on Friday.
Rolling out an ambitious blueprint to significantly cut the cost of prescription medication here and abroad, Trump announced he is directing U.S. Trade Representative Robert Lighthizer to make it a priority to prevent foreign countries from forcing American drugmakers to provide medicines at drastically lower prices than in the United States.
“It’s time to end the global freeloading once and for all,” Trump said during a White House Rose Garden event.
Trump did not specifically name any countries, but according to a report from the White House Council of Economic Advisers profit margins on brand-name drugs in the United States are four times as high as in more regulated markets, such as major European countries and Japan.
Earning more profit in such countries presumably would give drugmakers greater maneuverability with their bottom line to charge less in America.
In its annual report last month on the protection of intellectual property around the world, the Office of the U.S. Trade Representative, in addition to EU nations and Japan, also specifically criticized the drug pricing and reimbursement policies of Canada, India, South Korea and New Zealand.
In his Rose Garden comments, Trump also singled out what he called greedy companies and middlemen, who he declared had grown rich through “dishonest double-dealing,” vowing his administration is now “putting American patients first.”
Trump’s plan has four main themes: increasing marketplace competition; empowering private health care plans to negotiate discounts for Medicare beneficiaries; providing new incentives for manufacturers to reduce the list prices of medications; and reducing out-of-pocket costs for patients.
The president’s plan, however, breaks with one of his campaign promises, which was to authorize the purchasing clout of the federal government to negotiate directly with drug manufacturers for lower prices.
“Instead of putting forth a bold initiative, the president pulled his punch,” said Nancy Pelosi, the leader of the opposition Democrats in the House of Representatives. “The president is breaking his promise to the American people to allow Medicare to negotiate lower drug prices, which would save seniors billions of dollars at the pharmacy.”
Medicare is a federal health insurance program, covering 15 percent of the U.S. population, primarily those age 65 and older and certain younger people with disabilities.
Pelosi is calling on Trump to work “with Democrats to offer real solutions for struggling families, not waste their time bragging about meager, window dressing (a superficial appearance) policies.”
Shortly after the Rose Garden event, Health and Human Services Secretary Alex Azar told reporters in the briefing room that much of Trump’s plan can be achieved without legislative action.
“Most of this can be done by executive action,” Azar said, adding that “some of this will require regulatory action” that would take months, while restructuring the entire U.S. drug system would take years.
Azar, a former chief executive of the giant Eli Lilly pharmaceutical company, where he raised drug prices, explained incentives need to be put into place to encourage the lowering of prices.
“The entire system is actually built for increased prices and high prices,” he explained.
The Pharmaceutical Research and Manufacturers of America (PhRMA), which is the industry’s main lobbying organization, said some of Trump’s proposals could help make medicines more affordable for patients, but “others would disrupt coverage and limit patients’ access to innovative treatments.”
PhRMA President and Chief Executive Officer Stephen Ubl said in a statement the association “will be reviewing the request for information and look forward to participating in the comment process in the coming months.”
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An updated version of the SpaceX Falcon 9 rocket, tailored for eventual crewed missions into orbit, made its debut launch Friday from Florida’s Cape Canaveral, carrying a communications satellite for Bangladesh.
The newly minted Block-5 edition of the Falcon 9 — equipped with about 100 upgrades for greater power, safety and reusability than its Block-4 predecessor — lifted off at 4:14 p.m. EDT (2014 GMT) from the Kennedy Space Center.
Minutes later, the Block-5’s main-stage booster flew itself back to Earth to achieve a safe return landing on an unmanned platform vessel floating in the Pacific Ocean.
The recoverable booster for the Block-5 is designed to be reused at least 10 times with minimal refurbishment between flights, allowing more frequent launches at lower cost — a key to the SpaceX business model.
Enhanced rocket reusability also is a core tenet of SpaceX owner and billionaire entrepreneur Elon Musk’s broader objectives: making space travel commonplace and ultimately sending humans to Mars.
The flight came a day after the original launch countdown was halted one minute before blastoff time due to a technical problem detected by the rocket’s onboard computers. Friday’s second attempt by SpaceX, formally known as Space Exploration Technologies, appeared to have gone off without a hitch.
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British Prime Minister Theresa May and U.S. President Donald Trump agreed in a phone call Friday that talks were needed to discuss how U.S sanctions on Iran would affect foreign companies operating in the country.
Trump’s decision to pull the United States out of the Iranian nuclear deal and revive U.S. economic sanctions has alarmed the leaders of Britain, France and Germany who remain committed to the deal and who have significant trade ties with Tehran.
“The prime minister raised the potential impact of U.S. sanctions on those firms which are currently conducting business in Iran,” her spokeswoman said. “They agreed for talks to take place between our teams.”
The spokeswoman said May had told Trump that Britain and its European partners remained “firmly committed” to ensuring the deal was upheld as the best way to prevent Iran from developing a nuclear weapon. Iran says its nuclear program is for peaceful purposes only.
The two leaders also condemned Iranian rocket attacks against Israeli forces earlier this week and strongly supported Israel’s right to defend itself.
“They agreed on the need for calm on all sides and on the importance of tackling Iran’s destabilizing activity in the region,” the spokeswoman said.
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Mexico will not be rushed into revamping the North American Free Trade Agreement (NAFTA) just to get a deal, Economy Minister Ildefonso Guajardo said on Friday ahead of trilateral talks with his U.S. and Canadian counterparts.
Guajardo said he would meet at 1 p.m. EDT (1700 GMT) with Canada’s Foreign Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer, and that the three are closer to agreeing new rules for autos that are vital for a deal.
However, Guajardo, who is eager to reach an agreement on all the principal aspects of a modernized NAFTA before sealing a new deal, said plenty of other issues were outstanding.
“I have to make very clear [that] the quality of the agreement and the balance of the agreement has to be maintained. So we are not going to sacrifice balance and quality for time,” he told reporters on the doorsteps of Lighthizer’s office.
“We believe there is a way to solve autos. I think we are trying to make a very good effort … We are looking at the whole set of items we have to solve. So it’s not autos, it’s everything else.”
Guajardo and Freeland have been meeting Lighthizer separately since the start of the week. Friday’s trilateral meeting will be the first held this week.
Drafting new rules of origin governing what percentage of a car needs to be built in the NAFTA region to avoid tariffs has been at the center of the talks to update the 1994 deal. It forms a key plank of the Trump administration’s aim to boost jobs and investment in the United States.
Officials and industry sources say the three sides have been gradually narrowing their differences on autos.
However, several other major issues are still unresolved, including U.S. demands for a five-year sunset clause that would allow NAFTA to expire, and elimination of settlement panels for trade disputes.
U.S. House Speaker Paul Ryan set a May 17 deadline to be notified of a new NAFTA to give the current Congress a chance of passing it. The United States will hold elections in November for a new Congress that will be seated early next year.
Mexico’s top trade official, however, said time was running short to meet such a deadline. Mexico will hold its presidential election on July 1.
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Motorists with the money can now explore off-road in luxury or just make a statement dropping the kids off at school.
Rolls-Royce unveiled its first SUV on Thursday. The Cullinan, named for the diamond in Britain’s Crown Jewels, carries a $325,000 price tag plus an estimated $5,000 gas-guzzler tax.
The Cullinan’s 6.75-liter, twin-turbo V12 engine has 563 horsepower. The SUV includes Rolls’ “magic air ride,” but drivers can press an “off-road” button to hit the trails.
Deliveries are expected to begin in 2019.
Rising sales of SUVs and pickup trucks are driving auto sales in the U.S. Autodata Corp. said in March that truck and SUV sales rose 16.3 percent, while car sales plunged 9.2 percent. Nearly two-thirds of all vehicles sold were trucks or SUVs.
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On Yaji Mountain in southern China, they are checking in the sows a thousand head per floor in high-rise “hog hotels.”
Privately owned agricultural company Guangxi Yangxiang Co Ltd is running two seven-floor sow breeding operations, and is putting up four more, including one with as many as 13 floors that will be the world’s tallest building of its kind.
Hog farms of two or three floors have been tried in Europe.
Some are still operating, others have been abandoned, but few new ones have been built in recent years, because of management difficulties and public resistance to large, intensive farms.
Now, as China pushes ahead with industrialization of the world’s largest hog herd, part of a 30-year effort to modernize its farm sector and create wealth in rural areas, companies are experimenting with high-rise housing for pigs despite the costs.
The “hotels” show how far some breeders are willing to go as China overhauls its farming model.
“There are big advantages to a high-rise building,” said Xu Jiajing, manager of Yangxiang’s mountain-top farm.
“It saves energy and resources. The land area is not that much but you can raise a lot of pigs.”
Companies like Yangxiang are pumping more money into the buildings — about 30 percent more than on single-story modern farms — even as hog prices in China hold at an eight-year low.
For some, the investments are too risky. Besides low prices that have smaller operations culling sows or rethinking expansion plans, there is worry about diseases spreading through such intensive operations.
But success for high-rise pig farms in China could have implications across densely populated, land-scarce Asia, as well as for equipment suppliers.
“We see an increasing demand for two- or three-level buildings,” said Peter van Issum, managing director of Microfan, a Dutch supplier that designed Yangxiang’s ventilation system.
Microfan also supplied a three-story breeding operation, Daedeok JongDon GGP Farm, in South Korea.
“The higher ones are still an exception, but the future might change rapidly,” van Issum said.
High-rise hogs
Yaji Mountain seems an unlikely location for a huge breeding farm. Up a narrow road, away from villages, massive concrete pig buildings overlook a valley of dense forest that Yangxiang plans to develop as a tourist attraction.
The site, however, is relatively close to Guigang, a city with a river port and waterway connections to the Pearl River Delta, one of the world’s most densely populated regions.
While Beijing is encouraging more livestock production in China’s grain basket in the northeast, many worry that farms there will struggle to get fresh pork safely to big cities thousands of miles away.
That has helped push some farm investments to southern provinces like Guangxi and Fujian, where land is hilly but much closer to many of China’s biggest cities.
Yangxiang will house 30,000 sows on its 11-hectare site by year-end, producing as many as 840,000 piglets annually. That will likely make it the biggest, most-intensive breeding farm globally. A more typical large breeding farm in northern China would have 8,000 sows on around 13 hectares.
In Fujian province, Shenzhen Jinxinnong Technology Co Ltd also plans to invest 150 million yuan ($24 million) in two five-story sow farms in Nanping. Two other companies are building high-rise hog farms in Fujian as well, according to an equipment firm involved in the projects.
Thai livestock-to-retail conglomerate CP Foods is also building four six-story pig units with local firm Zhejiang Huatong Meat Products Co in Yiwu, a Chinese city near the large populations around Shanghai.
High-tech complexity
Yangxiang spent 16,000 yuan per sow on its new farm, about 500 million yuan total, not including the cost of the pigs.
Building upward means higher costs and greater complexity, such as for piping feed into buildings, said Xue Shiwei, vice chief operations officer at Pipestone Livestock Technology Consultancy, a Chinese unit of a U.S. farm management company.
“It would save on land but increase the complexity of the structure, and costs for concrete or steel would be higher,” he said.
Health concerns also raise costs, because the risk of rampant disease — an ever-present problem in China’s livestock sector — is higher with more animals under one roof.
Even two-story farms in Europe have sparked worries that pigs will receive less care, said Irene Camerlink, an animal welfare expert at the University of Veterinary Medicine in Vienna who has worked with Chinese farms.
Any outbreak of disease could lead to extensive culling, she said.
Farm manager Xu said Yangxiang reduces the risk of disease by managing each floor separately, with staff working on the same floor every day. New sows are introduced to a building on the top floor, and are then moved by elevator to an assigned level, where they remain.
The ventilation system is designed to prevent air from circulating between floors or to other buildings. Air enters through ground channels and passes through ventilation ducts on each level. The ducts are connected to a central exhaust on the roof, with powerful extraction fans pulling the air through filters and pushing it out of 15-meter high chimneys.
A waste treatment plant is still under construction on Yaji Mountain to handle the site’s manure. After treatment, the liquid will be sprayed on the surrounding forest, and solids sold to nearby farms as organic fertilizer.
The project’s additional equipment — much of it imported — to reduce disease, environmental impact and labor costs, significantly increased Yangxiang’s spending, the company said.
But after testing other models, Yangxiang concluded the multistory building was best. Others are less convinced.
“We need time to see if this model is do-able,” said Xue of the farm management firm, adding that he would not encourage clients to opt for “hog hotels.”
“There will be many new, competing ideas [about how to raise pigs in China],” Xue said, including high-rise farms. Eventually, “a suitable model will emerge.”
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Before taking office, President Donald Trump railed against the pharmaceutical industry and accused it of “getting away with murder.”
The populist rhetoric appears to be giving way to a more nuanced strategy focused on making the pharmaceutical market more open and competitive, with the aim of lowering costs for consumers.
It’s an approach that could avoid a direct confrontation with the powerful pharmaceutical lobby, but it could also underwhelm Americans seeking relief from escalating prescription costs.
On Friday, Trump is scheduled to give his first speech on an overarching plan to lower drug prices. Administration officials previewing the speech Thursday touted it as the most comprehensive plan to tackle prescription drug costs that any president has ever proposed, but offered few specifics.
Officials said the plan would increase competition, create incentives for drugmakers to lower initial prices and slash federal rules that make it harder for private insurers to negotiate lower prices. The result would be lower pharmacy costs for patients — a key Trump campaign promise.
The plan will not include giving the federal Medicare program power to directly negotiate prices with drugmakers, they noted. Trump campaigned on the idea, which is vigorously opposed by the pharmaceutical industry.
Public outrage over drug costs has been growing for years, because Americans are being squeezed in a number of ways: New medicines for cancer and other life-threatening diseases often launch with prices exceeding $100,000 per year. Drugs for common ailments like diabetes and asthma routinely see price hikes around 10 percent annually. Meanwhile some companies have been buying up once-cheap older drugs and hiking prices by 1,000 percent or more.
Since entering the White House, Trump has backed away from reforms directly targeting drugmakers and staffed his administration with appointees who have deep ties to the industry, including his health secretary, Alex Azar, a former top executive at Eli Lilly.
Still, administration officials ratcheted up the rhetoric ahead of Trump’s speech. Azar promised bold action. FDA Commissioner Scott Gottlieb — another Trump appointee with industry connections — hinted at a plan to “dismantle” the convoluted system of discounts and rebates between drugmakers and health care middlemen.
On Thursday, administration officials also vowed to address foreign governments that rely on U.S. medicines but pay drastically lower prices due to government controls. The U.S. accounts for 70 percent of the world’s brand-name drug profits, according to a White House report released earlier this year.
Here are some of the drivers of U.S. prescription drug prices, proposals for reducing the costs and what’s at stake:
Lack of regulation
Drugmakers generally can charge as much as the market will bear because the U.S. government doesn’t regulate medicine prices, unlike most other countries.
Medicare is the largest purchaser of prescription drugs in the nation, covering 60 million seniors and Americans with disabilities, but it is barred by law from directly negotiating lower prices with drugmakers. Democrats have long favored giving Medicare that power, but Republicans traditionally oppose the idea.
The powerful pharmaceutical lobby has repeatedly fended off proposals that could lower prices, such as Medicare negotiations or importing drugs from countries that regulate pricing.
With no direct government price regulation, the primary check on prices comes from buyers in bulk — such as insurance companies and pharmacy benefit managers, which handle prescription coverage for insurers, employers and other big clients.
But because there are so many players in the fragmented system, the discounts achieved in the U.S. are generally far more modest than those in other countries.
The result is that the U.S. spends more on medicines than any other nation. In 2015, the U.S. spent $1,162 per person on pharmaceuticals, according to the Organization for Economic Cooperation and Development. That compares with $756 for Canada and $497 for the United Kingdom, both of which have government measures to control drug prices.
Lack of transparency
The U.S. system for pricing drugs is notoriously complex, so much that the “real” price for most medicines isn’t clear. Critics contend that this lack of transparency limits competition and drives prices higher.
Pharmaceutical companies often launch their drugs with high initial prices. But they argue list prices are merely a starting point for negotiations because they give substantial rebates and discounts to pharmacy benefit managers. Those price concessions are almost never disclosed and it’s unclear what portion actually flows back to consumers.
FDA Commissioner Scott Gottlieb and others say the lack of transparency in the current system creates perverse incentives in which drugmakers and other health care companies benefit from rising prices — at the expense of patients.
Trump officials have suggested requiring Medicare pharmacy benefit managers to share rebate payments with patients. Another proposal would do away with rebates altogether to encourage more upfront discounts in Medicare.
But the benefit managers and insurers say that they use rebates to lower health care premiums overall and that doing away with them would drive up costs.
Patents and anti-competitive tactics
Patents last longer in the U.S. than most countries, typically giving companies a dozen years of competition-free marketing after a drug launches. Most drugmakers increase their prices annually during this monopoly period, and until recently double-digit price hikes were the norm.
Drugmakers also have developed a number of techniques to block competitors from launching lower-cost generic drugs. Companies often tweak drug formulations to extend their patents. In other cases, companies directly pay would-be competitors to stay off the market in so-called “pay-to-delay” deals.
Gottlieb has promised a crackdown on some of these techniques used to “game the system.” He’s highlighted a practice in which drugmakers use tightly controlled distribution systems to prevent rival manufacturers from purchasing their drug. This effectively blocks the development of generic versions because generic drugmakers must test their products against the original medicine before they can win FDA approval.
Public perception
A majority of Americans say bringing down prescription drug prices should be a “top priority” for Trump and Congress, according to recent polling by the Kaiser Family Foundation.
And experts who study drug pricing say it’s encouraging that the discussion around the issue has moved from outrage to sophisticated reforms. But some warn there is no guarantee that unraveling the current pricing-setting bureaucracy will lead to lower prices, because it all starts with drugmakers’ prices.
“Until we get closer to policy solutions that address the ability of drug manufacturers to set whatever price they want and increase prices year after year we may only be scratching the surface of this problem,” said Juliette Cubanski, a health care expert with the nonpartisan Kaiser Family Foundation.
Dan Mendelson, a health care consultant, said: “If they don’t address the cost that patients see at the pharmacy counter it’s not going to be seen as responsive.”
The World Health Organization said Friday it is preparing for “the worst case scenario” for an Ebola outbreak in the Democratic Republic of Congo.
WHO said Thursday that between April 4 and May 5, twenty-seven cases of fever with hemorrhagic signs, including 17 deaths, were reported in the DRC’s Bikoro district. WHO says two of the cases tested positive for the Ebola virus.
The DRC Ministry of Public Health has requested WHO’s support in coordinating the international and NGO response to the health crisis.
The full extent of the outbreak is not yet known, according to WHO, and the location presents “significant logistical challenges.” The affected area is remote with limited communication and poor transportation infrastructure.
Ebola, named for the Congolese river near where it was first identified in 1976, begins with a sudden fever, aching muscles, diarrhea and vomiting. It is a hemorrhagic fever, marked by spontaneous bleeding from internal organs and, in most cases, death. It can be transmitted by close contact with infected animals or people, usually through blood or other bodily fluids.
People can contract the virus through direct contact with victims’ bodies at funerals. Caretakers, nurses and doctors treating Ebola patients also are at high risk.
WHO says the outbreak in Bikoro is the ninth outbreak of Ebola in the DRC since it first emerged in 1976.
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Burden or business opportunity? A new U.N.-backed study of refugees from the World Bank’s International Financial Corporation argues for the latter. The IFC researchers examined one of Africa’s oldest and largest refugee camps, Kakuma in northwest Kenya. What they found is a growing consumer base they say is ripe for more private investment in sectors like mobile banking and energy. The IFC took VOA’s Daniel Schearf on a tour of the camp. He has this report.
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Advanced sensor technology can monitor a wide range of applications, from water quality to air pollution to energy use. Faith Lapidus tells us how a team of scientists at the University of Washington, with support from the National Science Foundation, is turning the sensors in smartphones into home health care tools.
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A senior United Nations official says trade protectionism, rising private and corporate debt, and shortcomings in revenue raising are growing challenges to the economic outlook for the Asia Pacific.
Shamshad Akhtar, executive secretary of the UN’s Economic and Social Commission for Asia and the Pacific (UNESCAP), noted the threats of trade wars undermining the region’s positive economic growth outlook.
The United States has pressed states, notably China, to reduce trade and current account deficits with the U.S., recently imposing tariffs on steel exports from several countries.
Akhtar said such trade protectionism represents “quite a big threat” along with nontariff barriers, which have been rising since the 2008 global financial crisis, such as cross border restrictions that further limit trade.
“If you look at the trends, there has been a post-2008 crisis, there has been an increase in nontariff barriers that face the Asia Pacific region as a whole. [The U.S. tariff increases] have been classified as a trade war eventually, if at all those [measures] are invoked there will be a counter reaction,” Akhtar said.
Trade war and growth
She said a trade war would directly impact the region’s economic growth, especially affecting small- and medium-sized enterprises in the Asia Pacific that have trading links to economies such as China, a key target of the U.S. tariffs.
“Yes, growth in itself would be impacted, and it’s happening at a time when we have just seen a recovery; both in terms of growth as well as trade,” Akhtar told VOA.
She said the trade conflicts represented a challenge to the long-standing multilateral rules set down under the World Trade Organization (WTO).
But economists with the Singapore/London based Capital Economics, say recent trade talks between the U.S. and China, and slowing global growth may have eased the threat of a trade war.
China trade surplus leveling
Capital Economics Senior China economist, Julian Evans-Pritchard, in a May commentary, said that while the trade surplus with the U.S. remains near an all-time high, there were “some signs” of it leveling off.
Evans-Pritchard said China’s export performance was also easing as global growth may have peaked.
“This will hopefully encourage [China] to adopt a pragmatic approach to trade negotiations in order to try to avoid the imposition of tariffs and an even sharper slowdown in export growth,” he said.
Outlook for 2018-2019
UNESCAP’s annual economic survey for the Asia Pacific, released this week, remained upbeat for the region’s economic growth at 5.5 percent in 2018 and 2019, with a “slight moderation” in China, offset by a recovery in India, with steady growth elsewhere in the region.
But Akhtar said there are still significant economic headwinds going forward, including infrastructure financing, estimated to be as much as $1.7 trillion.
To meet such demand, she said there is a need to reform taxation administration “in some of the Asia Pacific economies” through simplified tax regimes that could mobilize as much as $60 billion.
Mounting debt
The survey warned of “potential financial vulnerabilities” in regions of high private and corporate debt, particularly in China, South Korea, Malaysia and Thailand, in order to avoid a repeat of the Asian financial crisis of 1997-1998.
“It’s very clear to me we need to tackle the issue of private and corporate debt because from our previous experiences any overexposure in terms of whether the debt is private, corporate or household can induce a huge amount of domestic financial vulnerability,” Akhtar said.
Akhtar noted progress achieved in reducing poverty from almost 44 percent in 1990 to around 12 percent in early 2010.
But poverty levels remain “relatively high” in South and Southwest Asia. The Asia Pacific region still has some “400 million people living in poverty.”
Another issue is growing income inequalities in key economies, with the most marked changes in China and Indonesia, and to a lesser extent in India and Bangladesh.
“Given that we have steep inequalities with countries, it basically means that people don’t have access to basic economic and social services,” which can also sustain poverty rates, she said.
Akhtar said in the medium term “potential economic growth” appeared on a downward trend in several countries because of aging populations and a need to boost investment in human resources, such as education.
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The Trump administration will not stand in the way of the development of artificial intelligence in the United States, a top official said on Thursday, while acknowledging that the burgeoning technology will displace some jobs.
At a White House summit that included companies like Alphabet Inc.’s Google, Facebook Inc. and Amazon.com Inc., technology policy adviser Michael Kratsios said the administration of President Donald Trump did not want to dictate “what is researched and developed.”
“To the greatest degree possible, we will allow scientists and technologists to freely develop their next great inventions right here in the United States,” he said, according to a copy of his remarks provided by the White House.
AI and deep machine learning raise ethical concerns about control, privacy, cybersecurity, and the future of work, companies and experts say.
Kratsios acknowledged that “to a certain degree, job displacement is inevitable.”
He added: “But we can’t sit idle, hoping eventually the market will sort it out. We must do what Americans have always done: adapt.”
The White House, which has previously clashed with scientists over issues such as climate change, conservation and budget cuts, said it would create a new committee on AI. It will be comprised of the most senior research and development officials across the U.S government, tasked with looking at research and development (R&D) priorities and better coordinating federal investments.
“We cannot be passive. To realize the full potential of AI for the American people, it will require the combined efforts of industry, academia, and government,” Kratsios said.
“In the private sector, we will not dictate what is researched and developed. Instead we will offer resources and the freedom to explore,” he added.
Intel Corp.chief executive Brian Krzanich, who attended the summit, said in a blog post that “without an AI strategy of its own, the world’s technology leader risks falling behind.”
AI is already being used in a number of fields. For instance, the National Institute of Health is exploring ways machine learning can improve cancer detections and treatment, while the General Services Administration is using AI to reduce the need for federal auditors, the White House said.
Among more than 30 major companies attending included officials from Ford Motor Co., Boeing Co., Mastercard Inc. and Microsoft Corp.
The Pentagon and various U.S. departments took part, along with senior White House officials including Jared Kushner and Andrew Bremberg, who heads the Domestic Policy Council.
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Two weeks of climate talks organized by the United Nations ended Thursday as countries failed to resolve differences about implementing the Paris climate accord.
The negotiations will resume in Bangkok in September, where an extra week’s meeting has now been scheduled.
The pact’s 197 signatories have set a December deadline to agree on the precise rules that countries have to stick to under the Paris agreement.
The lack of progress threatens to unravel three years’ worth of work to complete the Paris agreement, a landmark deal reached in 2015 that set a goal to limit fossil-fuel pollution in all nations for the first time and keep global warming below 2 degrees Celsius by the end of the century.
Overall progress at the meeting in Bonn was very slow, with some countries such as China looking to renegotiate aspects of the Paris deal.
Patricia Espinosa, head of the U.N. agency that oversees climate talks, described the package being negotiated as “highly technical and complex.” It aims to ensure that the efforts countries claim they’re making in the fight against global warming can be verified and compared.
The administration of President Barack Obama was widely credited with helping to bring together the diverging interests of rich and poor countries in the drive to secure the Paris deal. His successor, President Donald Trump, withdrew the U.S. from the accord in June 2017. His administration has attacked climate science, saying it questions whether human activity is behind climate change, and is focused on boosting the fossil fuel industry.
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Young men who smoke are more likely to have a stroke before age 50 than their peers who avoid tobacco, a small study suggests.
Smoking has long been linked to an increased risk of stroke in older adults, but research to date examining this connection in younger adults has mainly focused on women. For the current study, researchers examined data on 615 men who had a stroke before age 50 and compared their smoking habits to a control group of 530 similar men who didn’t have a history of stroke.
Overall, current smokers were 88 percent more likely to have a stroke than men who never smoked, the study found.
Light smokers who had fewer than 11 cigarettes a day were 46 percent more likely to have a stroke. Heavy smokers with a two pack-a-day habit, or more, were over five times more likely to have a stroke.
‘Simple takeaway’
“The simple takeaway is the more you smoke, the more you stroke,” said lead study author Janina Markidan of the University of Maryland School of Medicine in Baltimore.
Smoking causes inflammation in blood vessels that increases the risk of blood clots forming, which in turn increases the risk of stroke, Markidan said by email.
“Although reducing the number of cigarettes smoked can reduce your risk of stroke, quitting is still the best choice for smokers,” Markidan added.
For the study, researchers focused on what’s known as an ischemic stroke, the most common kind, which occurs when a clot blocks an artery carrying blood to the brain.
Study has limitations
Among the stroke cases included in the study, 239 men had never smoked and 108 were former smokers. Another 103 men smoked less than 11 cigarettes daily, while 97 men smoked between 11 and 20 cigarettes a day and 40 men smoked 21 to 39 cigarettes daily.
An additional 28 men who had strokes smoked more than 40 cigarettes, or two packs, a day.
Most of the men who had strokes in the study were between 35 and 49 years old.
The study wasn’t a controlled experiment designed to prove whether or how smoking habits might directly influence the potential for a stroke in younger men.
Another limitation is that researchers lacked data on other tobacco products participants used in addition to cigarettes, which might influence their risk of stroke, researchers note in the journal Stroke.
Results hold true for younger smokers
The study team also lacked data on other factors that can independently influence the risk of stroke such as alcohol consumption or exercise habits.
Even so, the results suggest the link between smoking and strokes that is well established for older adults also holds true for younger smokers, said Allan Hackshaw, a researcher at University College London in the UK, who wasn’t involved in the study.
“It shows that smoking has a serious impact even when people are younger,” Hackshaw said by email. “Because treatments for stroke are much better now (fewer die from it straight away), many people who suffer one can have long-lasting consequences and physical disabilities at an age when they are usually expected to be working and physically active/fit.”
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