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Syria’s government signed a contract with an Iranian company on Tuesday to import five gas-fired power plants to the war-battered city of Aleppo, in an early sign of the major role Tehran is expected to play in Syria’s reconstruction.

The deal, reported by Syria’s state news agency SANA, is part of a broader understanding reached by Damascus and Tehran promising Iranian companies contracts to restore electrical infrastructure in Syria, Electricity Minister Zuhair Kharboutli said during a visit to Tehran.

The Aleppo contract was awarded to the Iranian firm Mabna and is valued at around 130 million euros, according to a Kharboutli statement carried Sunday by SANA.

Kharboutli also signed memorandums with Iranian Energy Minister Sattar Mahmoudi promising to import five plants to provide 540 megawatts of electricity to the coastal Latakia province, as well as to build wind and solar plants, and to restore plants in Deir el-Zour and Homs.

Iran has been an indispensable ally to President Bashar Assad, organizing militias from Lebanon to Afghanistan to fight for alongside his forces and sending its own Revolutionary Guard Corps to Syria to manage battles. Assad has been battling an uprising against his family’s 47-year dynasty since 2011.

Electricity generation plunges

The fighting has come at a tremendous cost to the nation’s infrastructure. Electricity generation dropped by more than half from 2010 to 2014, according to the latest figures available from the OECD’s International Energy Agency monitoring group.

Syrian troops retook eastern Aleppo at the end of last year with the help of Russian air raids and Iran-backed militias after years of heavy fighting. In the weeks after the fighting ended, electricity was cut off across the entire city, even in government-held neighborhoods, but residents say power has since been restored in some areas.

Most of the city’s power plants were in eastern Aleppo, which was captured by rebels in 2012 and suffered catastrophic destruction during the government’s drive to recapture it.

Assad’s government awarded a concession to Iran to operate a new cellular network for Syria in January. Other concessions signed to Iran include thousands of hectares of land for farming and oil and gas terminals, and the operation of a phosphate mine in central Syria, according to Iran’s official IRNA news agency.
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Eiffel Tower employees planned a walkout, angry carnival workers snarled traffic around Paris’ Arc de Triomphe, and Paris police girded for potential violence as unions and others hold nationwide protests Tuesday against changes to labor laws they fear corrode job security.

 

The protests are the first big public display of discontent with President Emmanuel Macron’s presidency, which kicked off in May amid enthusiasm over his promises of reviving up the French economy but is now foundering amid anger over the labor decrees and other domestic troubles.

 

The prominent CGT union is leading Tuesday’s protests, calling for strikes and organizing some 180 demonstrations against last labor decrees unveiled last month by Macron’s government.

 

At the Eiffel Tower, CGT union representative Denis Vavassori told The Associated Press that workers plan a walkout Tuesday afternoon, but it is unclear so far whether the monument will be forced to close or will stay partially open for tourists.

 

Horn-tooting funfair workers held a separate protest movement Tuesday against legal changes they say favor big corporations and could wipe out their centuries-old industry.

 

Dozens of big rigs drove at a snail’s pace around the Arc de Triomphe, causing rush-hour traffic snarls as protesters danced and waved flags on a flat-bed truck with a severed plastic head from a funfair ride.

 

The workers said they timed their protest to coincide with Tuesday’s broader labor demonstrations, since both movements are about workers fearing their jobs are at threat.

 

Bumper car worker Sam Frechon said, “everybody likes funfairs. Everybody has been to a funfair one time in his life … Funfair is France.”

 

Meanwhile, thousands of union activists marched Tuesday morning in the Mediterranean city of Marseille, in Le Havre on the English Channel and other cities.

 

An afternoon march is planned in Paris, where police announced extra deployments. While union marches are usually peaceful, troublemakers on the margins often clash with police. A broad movement against similar labor reforms last year saw several weeks of scattered violence.

 

The protests come amid anger at a comment last week by Macron suggesting that opponents of labor reform are “lazy.” Government spokesman Christophe Castaner said on RTL radio Tuesday that Macron didn’t mean workers themselves but politicians who failed to update French labor rules for a globalized age.

 

Macron’s labor decrees — which reduce the power of unions and give companies more authority to fire workers and influence workplace rules — are the first step in what he hopes are deep economic changes. The decrees are to be finalized this month.

 

Critics say they dismantle hard-fought worker protections and accuse the government of being undemocratic for using a special method to push the decrees through parliament.

 

Companies argue that existing rules prevent them from hiring and contribute to France’s high unemployment rate, currently around 10 percent.

 

Some unions refused to join the protests, preferring to negotiate with the government over upcoming changes to unemployment and retirement rules instead of taking their grievances to the street.

 

Macron himself chose Tuesday to go to the French Caribbean to bring aid and meet with victims of Hurricane Irma.
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While U.S. stock indexes continue to see record breaking gains and U.S. employment numbers are encouraging, American farmers continue to struggle with high costs for fertilizer and seed at a time when demand and prices for their products are low. As VOA’s Kane Farabaugh reports, the economic hardship has a ripple effect beyond the farmers’ fields.
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The former chairman of the world’s largest meatpacker, whose testimony implicated Brazil’s president in corruption, turned himself in to police Sunday after the country’s Supreme Court ordered his arrest.

 

Joesley Batista has avoided prosecution under a plea bargain deal in which he described how meatpacking giant JBS had bribed dozens of politicians, including President Michel Temer.

 

Earlier this year, Temer was charged with corruption for allegedly orchestrating a scheme in which he would get payouts totaling millions of dollars for helping JBS resolve a business issue.

 

Temer denies wrongdoing, and Congress voted in August that he would not stand trial on the charge while in office.

 

But Brazil’s sprawling probe into the massive trade in bribes and kickbacks for favors between companies and politicians, known as Operation Car Wash, continues to churn out new allegations on almost a daily basis. Just this week the country’s chief prosecutor, Rodrigo Janot, filed charges against three former presidents and several other powerful politicians, accusing them of forming criminal organizations to pilfer from public coffers, and authorities detained a former Cabinet minister and close ally of Temer after $16 million in cash was found in an apartment linked to him.

 

Janot also has said he plans to file more charges against Temer. To do so, he’ll need to act in the coming days since his terms ends on Sept. 18.

 

But the specter that Batista and others withheld information could cast a pall over the Car Wash investigation, which has relied heavily on plea bargain deals, a fairly new innovation here. Many in Brazil are uneasy with the agreements, in general, and the deals JBS executives got provoked specific outrage from those who thought they were too lenient.

 

Janot said last week that he is investigating whether Batista and other cooperating witnesses omitted some information from their testimony and he has threatened to revoke the deals if they didn’t tell the whole truth.

 

The revelation came after Janot’s office received audio of a conversation between Batista and Ricardo Saud, an executive at J&F Investimentos, the holding company that controls JBS. The men apparently did not know they were being recorded, and Janot said it contained vague references to potentially illicit activity not previously disclosed, including the possibility of wrongdoing in his own office and at the Supreme Court.

 

He was careful to add that any information they have given — like the allegations against Temer — was still valid.

 

In his decision, Justice Edson Fachin said there was sufficient indication that Batista and Saud had withheld information from prosecutors when formalizing their plea bargains. Fachin ordered both men be detained. The decision was made Friday but was only made public by the court on Sunday.

 

Guilherme Barros of the public relations firm GBR that represents J&F said Batista and Saud have turned themselves in to Federal Police in the city. A statement e-mailed by GBR said that both Batista and Saud deny that they lied or omitted information in their deals and that they are fulfilling the terms of the agreement.
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The White House’s decision this week to repeal the Deferred Action for Childhood Arrivals (DACA), carries enormous repercussions for the nearly 800,000 beneficiaries: The undocumented young people who were brought to the United States as children.

But the cost, which is difficult to quantify for a workforce faced with the real possibility of losing their job and forced to leave the country, is evident to employers, who largely view both the moral and economic implications of ending the program as intertwined.

“Losing [the economic contributions of DACA recipients] is a direct cost,” said Kathryn Wylde, president and CEO of Partnership for New York City, which represents the city’s business leadership. She said the state’s DACA workforce contributes several billion dollars a year to the local economy.

WATCH: DACA Repeal to Cost U.S. Businesses, Economy Billions

“It’s also a signal to the rest of the world that somehow America is no longer a place that is embracing talent and hard work and the energy of immigrants,” Wylde told VOA. “That message has a ripple effect in terms of hurting recruitment efforts by our major companies, because they need talent — multilingual talent — from all over the world.”

Employers bear the brunt

To date, more than 400 U.S. entrepreneur and business leaders have signed an open letter that calls on U.S. President Donald Trump and Congress to preserve DACA and provide a permanent solution that ensures recipients’ ability to continue working legally in the country without risk of deportation.

“Our economy would lose $460.3 billion from the national GDP and $24.6 billion in Social Security and Medicare tax contributions,” the letter reads, referencing research conducted by the liberal-leaning Center for American Progress, over a 10-year period.

The conservative-leaning CATO Institute places that figure at $280 billion.

​Lose-lose

Following the announcement of DACA’s repeal, the White House suggested unemployed American workers might somehow benefit, based solely on the age of the workforce.

“There are over 4 million unemployed Americans in the same age group as those that are DACA recipients,” White House Press Secretary Sarah Huckabee Sanders told reporters.

“Over 950,000 of those are African-Americans in the same age group; over 870,000 unemployed Hispanics in the same age group. Those are large groups of people that are unemployed that could possibly have those jobs,” Sanders said.

But economists and immigration analysts find fault with Sanders’ argument: The native-born unemployed population is not a perfect substitute for the DACA workforce, and the displacement of one worker for another does not increase productivity.

Under the repeal of DACA, CATO estimated employers would incur $6.3 billion in turnover costs, a figure that includes the recruiting, hiring and training of 720,000 new employees in often highly skilled positions. Thirty-six percent of DACA recipients 25 and older hold a bachelor’s or advanced degree.

Many DACA recipients “are highly educated and working in positions such as health care and education, where they are more highly paid and therefore more productive,” said David Bier, immigration policy analyst at CATO Institute. “[Those are] the industries where you’re going to see a greater impact as a result of this forced turnover caused by the DACA repeal.”

“Contracting the labor force, kicking people out of the country, will not create jobs. It will just shrink the overall size of the economy,” Bier said.

Over the long term, Wylde said, failing to find a permanent solution for DACA workers would inhibit U.S. businesses’ ability to compete.

“We want to be at the forefront of the attraction and support of our talent,” she said. “We don’t want to be deporting them.”
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The White House’s decision to repeal DACA, or Deferred Action for Childhood Arrivals, carries enormous repercussions for the nearly 800,000 beneficiaries who arrived in the U.S. as children. Over the next two years, more than 700,000 employed recipients will find themselves without a job. And for their employers, laying off a qualified workforce carries not only moral implications, but billions in lost revenue and an overall reduction in U.S. economic growth. VOA’s Ramon Taylor reports.
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Two back-to-back storms will have a significant impact on U.S. growth and productivity, according to economists tracking the impact of Hurricanes Harvey in Texas, and Irma — expected to make landfall in Florida this weekend. Despite the potential catastrophic loss in lives and capital, economists who spoke with VOA say the damage to the U.S. economy is likely to be short-lived. Mil Arcega has more.
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China’s producer price inflation accelerated more than expected to a four-month high in August, fueled by strong gains in raw materials prices and pointing to strong, sustained growth for both factory profits and the economy.

The producer price index (PPI) rose 6.3 percent in August from a year earlier, from 5.5 percent in July, the National Bureau of Statistics said Saturday.

Analysts polled by Reuters had expected the August producer price inflation rate would edge up to 5.6 percent, its first pickup in six months.

Strong industrial profits

China’s industrial firms have been posting their strongest profits in years thanks to a government-led construction boom that has fueled demand and prices for everything from cement to steel.

The country’s strong appetite for resources such as iron ore has helped fuel a reflationary pulse in the manufacturing sector worldwide.

But analysts continue to maintain that factory-gate prices will lose steam eventually as the government continues to clamp down on riskier types of financing, which is slowly pushing consumer and corporate borrowing costs higher.

China’s commodities futures markets have rallied hard this year and continued to surge through in August. Strong restocking demand and government pledges to shut inefficient and highly polluting mines and plants have underscored concerns over tight supply heading into winter.

Steel industry expands

Activity in China’s steel industry expanded in August at the fastest pace since April 2016, reflecting high levels of production and low inventory.

With the industrial sector in high gear, China’s economy grew by a faster-than-expected 6.9 percent in the first half of this year, turbo-charged by heavy government spending and massive bank lending last year.

That momentum plus strong August readings so far should allow Beijing to easily meet or beat its full-year growth target of 6.5 percent.

Indeed, relatively steady growth through the rest of the year would see the world’s second-largest economy accelerate for the first time in seven years. Last’s years pace of 6.7 percent was the slowest in 26 years.

China’s consumer inflation rate also rose more than expected to a seven-month high of 1.8 percent in August, the bureau said, the first time it has accelerated in three months.

The consumer price index (CPI) had been expected to rise 1.6 percent on-year compared with an increase of 1.4 percent in July.

Food prices, the biggest component of the consumer price index (CPI), fell 0.2 percent from a year earlier.

Nonfood price inflation quickened to 2.3 percent in August from 2 percent in July. Analysts had expected the CPI to rise 1.6 percent from 1.4 percent in July but remain well within the central bank’s comfort zone.
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Aid groups have criticized efforts by European leaders to stem the flow of migrants from sub-Saharan Africa, arguing Europe’s economy needs more workers. One nongovernmental organization in Italy has been trying to fill the gap by training African migrants to work as beekeepers and then pairing them with local honey producers in need of employees. Ricci Shryock reports for VOA from Alessandria, Italy.
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As women pound the pavements of Abidjan selling their wares, direct manic traffic in blue police uniforms and host popular television shows, it’s hard to believe Ivory Coast has one of the world’s widest gender gaps.

With stark inequalities in school, as well as in access to healthcare and jobs, the United Nations ranks French-speaking West Africa’s largest economy 155 out of 159 countries when it comes to gender equity.

“Ivorian women get by because we have strength,” said Animata Touré, before trying to cajole passersby into buying her fruit in the city’s business district Plateau.

“[Life] is a bit hard,” she acknowledged.

The 46-year-old has scraped by as a hawker all her life, shelving her dream of opening a small restaurant as unrealistic.

“Who is going to give me the means to do that?”

Ivorian women earn on average half as much as men, the World Bank says, largely because they are less educated, spend several hours a day cooking and caring for children, and lack access to finance, equipment and commercial networks.

Supporting would-be female entrepreneurs, like Touré, could generate at least $6 billion, or a third of the country’s current revenues, the Bank says.

“We have huge potential here,” said Ahmed Diomande, an official in the trade ministry, describing the World Bank’s latest data as an “alarm bell.”

“The challenge is convincing men that they have a vested interest in gender parity,” he told the Thomson Reuters Foundation at a women’s rights conference in Abidjan.

The government is working to reduce the gender gap by using a $9 million loan from Morocco to fund small- and medium-sized businesses run by women entrepreneurs, he said.

It is also backing a private-sector initiative to lift women out of the informal sector by training them as grocery store managers in more than a dozen shops in Abidjan.

As Ivory Coast’s vast, informal economy is largely run by women, authorities and business leaders are keen to help them make the leap to better-paying, regulated businesses with training and access to credit.

“Economic power is in women’s hands,” said Salimata Porquet, a former politician who fought successfully for gender equality at work to be included in Ivory Coast’s 2016 constitution.

Books for Boys

Ivory Coast needs to get more girls into school and provide them with role models across the board, from business to politics, activists say, as reducing gender inequality has proven key to the success of many emerging nations.

Discrimination starts young in Ivory Coast, where only 33 percent of women are literate compared to 53 percent of men – a gap that has widened since the early 1980s, the bank says.

Unlike most African nations, Ivory Coast does not have an equal number of boys and girls in primary school.

Many poor parents educate their boys, rather than girls, as they believe the sons will get better jobs and provide for them.

Girls, meanwhile, often become married mothers in their teens.

“The more we see women… in a field that we like, the more we have young girls trying to follow that path,” said Tchonté Silué, 23, a female blogger who runs a children’s library in Abidjan to encourage youngsters to read.

She tries to inspire Ivorian girls by sharing her story as a young woman who earned a master’s degree in the United States.

Activists say women also need to support each other as they advance in business and politics.

“If we’re able to share our experiences, that can inspire each woman to do her part,” said Marie-Thérèse Boua N’Guessan, who runs a publication about women’s leadership.
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Treasury Secretary Steven Mnuchin is raising speculation that Harriet Tubman’s future on the $20 bill could be in jeopardy.

 

In a CNBC interview, Mnuchin on Thursday avoided a direct answer when asked whether he supported the decision made by the Obama administration to replace Andrew Jackson on the $20 bill with Tubman, the 19th century African-American abolitionist who was a leader in the Underground Railroad.

 

“People have been on the bills for a long period of time,” he said. “This is something we’ll consider. Right now, we have a lot more important issues to focus on.”

 

During last year’s campaign, Donald Trump praised Jackson, the nation’s seventh president, for his “history of tremendous success” and said the decision to replace him with Tubman was “pure political correctness.”

 

Trump suggested during the campaign that one possibility would be to put Tubman on another bill and leave Jackson on the $20. He and Ben Carson, currently secretary of housing and urban development, had both suggested during the GOP primaries that Tubman might go on the $2 bill instead.

Then-Treasury Secretary Jacob Lew announced last year that he had decided to place Tubman on the $20 bill as part of a make-over of the nation’s currency to improve security features on the bills. The new currency bearing Tubman’s portrait was scheduled to be unveiled in 2020, the 100th anniversary of passage of the 19th amendment giving women the right to vote.

 

Lew arrived at the decision to displace Jackson on the $20 bill after generating a loud outcry with an initial proposal to put a woman on the $10 bill replacing Alexander Hamilton.

 

In the CNBC interview, Mnuchin said, “The number one issue why we change the currency is to stop counterfeiting. So the issues of why we change it will be primarily related to what we need to do for security purposes.”

 

At the White House, press secretary Sarah Huckabee Sanders told reporters, “I’m not aware of any policy change. I’d certainly have to check into that.”

 

In a wide-ranging interview, Mnuchin also:

 

— Said the original goal of getting Congress to pass comprehensive tax reform by August “got delayed a bit,” but he stressed that the administration was still on track to have a measure signed into law by the end of this year.

 

Mnuchin’s comments on taxes came one day after Trump launched the administration’s fall push to overhaul the nation’s tax system with a speech in Springfield, Missouri. There he said the plan, details of which have yet to be revealed, would unlock strong economic growth, reduce the tax burden of the middle-class and encourage corporations to keep jobs in America.

Mnuchin rejected the idea that the administration has yet to settle on the details of the tax plan.

 

“We are on track to get this done by the end of the year,” he said. “So you’re going to see the detail come out [in September.] It’s going to go through a committee process. We expect the House and Senate will get this to the president to sign this year and we couldn’t be more excited about the progress we’ve made.”

 

Mnuchin would not say whether Trump’s goal of reducing the top corporate tax rate to 15 percent from the current 35 percent would remain in the finished administration proposal, or whether it might be changed to a less ambitious cut to 20 or 25 percent.

 

“We’ll go through with the [congressional] committees and see where we end up,” Mnuchin said.

 

— Expressed confidence that Congress will pass legislation needed to raise the government’s borrowing limit this fall and avoid a catastrophic default on the nation’s debt. Mnuchin has authority to use a range of bookkeeping maneuvers to avoid breaching the limit through Sept. 29, although private analysts believe the actual deadline for Congress increasing the current $19 trillion limit will be in mid-October.

 

— Stated that the administration has a good working relationship with Federal Reserve Chair Janet Yellen. He refused to say how many candidates, other than Yellen, President Donald Trump is considering for the Fed job when Yellen’s current term expires in February. Trump said in an interview last month that Yellen, Gary Cohn, head of Trump’s National Economic Council, and “two or three” other contenders were in the mix.

Yellen used a high-profile speech last Friday at a central bank conference in Jackson Hole, Wyoming, to defend the Dodd-Frank bank regulatory overhaul passed in 2010. She described it as a successful effort to make the financial system stronger following the 2008 financial crisis. Trump has called the measure a “disaster” and he and GOP lawmakers would like to rewrite it extensively to reduce regulatory burden on banks.

Asked if this was an area of conflict between Yellen and the administration, Mnuchin said, “I had breakfast with Fed Chair Yellen this morning. … we have a very constructive dialogue on a lot of issues including regulation.”

 

Mnuchin said “ultimately the president will make a decision later in the year” on who he will nominate for a new term as Fed chair.
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Gasoline futures surged more than 13 percent Thursday, and crude oil settled nearly 3 percent higher, as almost a quarter of U.S. refining capacity remained offline and traders scrambled to reroute millions of barrels of fuel.

U.S. gasoline futures have rallied more than 28 percent from the previous week to a two-year high above $2 a gallon, buoyed by fears of a fuel shortage days ahead of the U.S. Labor Day weekend’s traditional surge in driving. Gasoline settled up 25.52 cents, or 13.54 percent, at $2.1399.

Hurricane Harvey, which brought record flooding to the U.S. oil heartland of Texas and killed at least 35 people, has paralyzed at least 4.4 million barrels per day (bpd) of refining capacity, according to company reports and Reuters estimates.

The U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement said that roughly 13.5 percent of oil production in the Gulf of Mexico was also shut in Thursday.

US taps strategic oil reserves

The U.S. government tapped its strategic oil reserves for the first time in five years Thursday, releasing 1 million barrels of crude to a working refinery in Louisiana. Traders were also scrambling to redirect fuel to the United States.

U.S. West Texas Intermediate (WTI) crude futures settled $1.27 higher at $47.23 per barrel, up 2.76 percent. It remained on track to close August down almost 6 percent, the steepest monthly loss since March.

International benchmark Brent crude settled $1.52 higher, or 2.99 percent, at $52.38 a barrel. It had fallen by just more than 2 percent in the previous session.

“The market has turned in reverse pretty sharply,” said Gene McGillian, manager of market research at Tradition Energy. “You do have some signs of rebalancing, regardless of Harvey.”

US refineries key to oil prices

On Wednesday, oil prices fell despite a weekly drop in closely watched U.S. commercial crude stocks of 5.39 million barrels. Crude inventories are 14.5 percent below record levels hit in March.

OPEC output this month also fell 170,000 bpd from a 2017 high, a Reuters survey found, as renewed unrest cut supplies in Libya and other members stepped up compliance with a production-cutting deal.

Analysts called the status of U.S. refineries a key to oil prices.

“The disruptions in recent days may delay the ongoing global crude oil rebalancing process,” Bank of America Merrill Lynch said in a note.

Analysts at Goldman Sachs and Stifel said U.S. outages would probably last several months, but it was difficult to estimate the exact damage. Others said higher gasoline prices might prompt operational refineries to delay typical September seasonal maintenance.

“Refineries outside the affected area may delay maintenance to benefit from high processing margins,” said Commerzbank oil analyst Carsten Fritsch. “Hence, the negative impact on crude oil demand and oil product supply might be less severe than feared.”

Shrinking crude stocks and expectations for rising growth in global demand meant analysts in a monthly Reuters poll raised their oil price forecasts for the first time in six months.
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U.S. Customs and Border Protection selected four construction companies Thursday to erect prototypes of the Mexican border wall that President Donald Trump has said he intends to build to deter illegal immigration and smuggling.

The four firms, from four different U.S. states, are to build solid-concrete prototypes of the border wall within 30 days, once they are given a notice to proceed. Those four sample walls will then be tested for strength and “permeability,” according to the agency’s acting deputy commissioner, Ronald Vitiello.

The border protection agency is separately screening applicants for other contracts to build prototype walls made from alternate materials.

Trump has said he thinks the 10-meter-tall wall should have windows, or even be fully transparent, so Border Patrol officers in the United States can observe suspicious activities on the other side of the barrier.

“We’re going to use all the things that we think will work the best,” Vitiello said.

Thursday’s announcement was the latest step forward in a bureaucratic process that has been delayed multiple times. The administration once said construction of the full border wall would begin in June, but it was not until mid-March that the first requests for proposals went out to contractors, seeking conceptual designs for the border barrier, which has been shrouded in political controversy.

Congress has appropriated $20 million to CBP for use in preparing the prototypes, both of concrete and other materials. No funds have yet been budgeted for the full border wall, likely a multibillion-dollar undertaking that would be one of the largest public works projects in U.S. history.

The four companies selected Thursday to build concrete prototypes were Caddell Construction of Montgomery, Alabama; Fisher Industries of Tempe, Arizona; Texas Sterling Construction of Houston; and W.G. Yates & Sons of Philadelphia.
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The French government said on Thursday it would cap unfair dismissal payouts and give companies more flexibility to adapt pay and working hours to market conditions in a labor reform France’s biggest union said was disappointing.

The reform, President Emmanuel Macron’s first major policy step since his election in May, is also the first big test of his plans to reform the euro zone’s second-biggest economy.

For decades governments of the left and right have tried to reform France’s strict labor rules, but have always diluted them in the face of street protests.

The government said in a document presenting the reform that it will make it possible to adapt work time, remuneration and workplace mobility to market conditions based on agreements reached by simplified majority between employers and workers.

Workers compensation for dismissal judged in a labor court to be unfair would be set at three months of wages for two-years in the company with the amount rising progressively depending on how long a worker was with the firm, unions said.

However, normal severance pay would be increased from 20 percent of wages for each year in a company to 25 percent, Liberation reported.

The government consulted with unions for weeks as it drafted the reform, and only the hardline CGT union, the country’s second biggest, said from the start that it would hold a protest, set for Sept. 12.

France’s biggest union, the reformist CFDT, said that it would not call a strike against the reform but described the reform as a missed opportunity to improve labor relations.

“CFDT disappointed,” the union’s leader Laurent Berger told reporters after a meeting with the government, but he added: “Taking to the streets is not the only mode of action for unions.”
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In the coming weeks, as Houston turns its attention to rebuilding areas devastated by Tropical Storm Harvey, people like Jay De Leon are likely to play an outsized role — if they stay around.

De Leon, 47, owns a small construction business in Houston, and he and his 10 employees do exactly the kind of demolition and refurbishing the city will need. But like a large number of construction workers in Texas, De Leon and most of his workers live in the United States illegally, and that could make things complicated.

The Pew Research Center estimated last year that 28 percent of Texas’s construction workforce is undocumented, while other studies have put the number as high as 50 percent. Construction employed 23 percent of working undocumented adults in Texas at the end of 2014, higher than any other sector, according to the Migration Policy Institute.

Undocumented immigrants nervous

However, undocumented immigrants are growing increasingly nervous in Texas because of an immigration crackdown by the Trump administration that has cast a wide net.

In addition, a new Texas law that would have taken effect later this week bars cities from embracing so-called sanctuary policies, where they offer safe harbor to illegal immigrants, and allows local police to inquire about a person’s immigration status. A federal judge Wednesday temporarily blocked most of the law from taking effect.

De Leon, who has lived in the country for 20 years and has two citizen children, says the changes have spooked the city’s migrant workforce. In recent weeks, he said, one of his employees left the state and another returned to Mexico. Both feared that if they stayed they risked arrest.

Departing workers, he says, pose a problem for Houston in the wake of Harvey, which has caused flood damage to commercial buildings, houses, roads and bridges expected to run into tens of billions of dollars.

“The situation that Houston is going through now with the hurricane is going to be the trial by fire for the Republicans and the governor that approved these radical laws,” De Leon said. “They will need our migrant labor to rebuild the city. I believe that without us it will be impossible.”

Undocumented workers perform a wide range of construction jobs, from framing and dry-walling to plumbing and wiring.

Shortage of U.S. trained workers

Stan Marek, chief executive of Marek Construction in Texas, said his company doesn’t hire undocumented immigrants and has long had difficulty finding enough trained U.S. workers.

“It’s a crisis,” Marek said. “We are looking at several thousand homes that have flood damage. There is no way the existing (legal) workforce can make a dent in it.”

Marek would like to see the federal government grant emergency work authorization for undocumented workers in the rebuilding effort, he said. Otherwise, those immigrants are likely to be hired by firms that do not pay payroll taxes or provide benefits like workers’ compensation and legally mandated overtime.

It isn’t yet possible to estimate how many construction jobs will be added in Texas as it rebuilds, but in the 12 months after Hurricane Katrina hit in 2005, Louisiana added 14,800 jobs in the sector, U.S. government data shows.

About 25 percent of the construction workers involved in the cleanup of New Orleans were undocumented, according to a study by researchers at Tulane and UC Berkeley universities. Those without papers were “especially at risk of exploitation,” the study found.

Worker exodus

The labor shortages are likely to grow worse, many builders warn. Earlier this year, a group of Hispanic contractors sent a letter to Texas Governor Greg Abbott warning that the pending ban on sanctuary city policies would make it “difficult to find and retain experienced workers.”

Javier Arrias, chairman of the Hispanic Contractors Association de Tejas and one of the letter’s signers, told Reuters that “many construction workers are already moving to other states.”

Abbott’s office did not respond to a request for comment about the role undocumented workers might play in the recovery.

Elizabeth Theiss, president of Houston-based anti-immigration group Stop the Magnet, sees another option besides looking to workers in the country illegally. She says the rebuilding effort should be used to help train U.S. veterans and other citizens who need jobs.

Theiss acknowledged that reconstruction might proceed more slowly, at least initially, if immigrants without work documents are not part of the effort, but she noted that rebuilding would be slow under any scenario.

Personal hardships

Whatever role undocumented people play in rebuilding Houston, they could face hardships rebuilding their own lives.

While the Federal Emergency Management Agency provides emergency food, water and medicine to anyone, regardless of immigration status, cash assistance and other longer term aid is only available to citizens and immigrants in households where at least one family member has legal status.

Immigrant advocates are launching private fundraising drives to help fill the void.

“It is deeply tragic and un-American that so many of those working men and women who will be rebuilding Houston and the rest of the state will be doing so while facing tragedy in their own lives,” said Jose Garza, executive director of the Workers Defense Project.

De Leon said his family was lucky and did not suffer flood damage. He is now busy rounding up supplies for immigrant families stuck at shelters who are afraid to seek out more help from authorities.

In the end, he says, President Donald Trump has to know “it’s going to be impossible to rebuild Houston without the labor force of immigrants. It is illogical, what he says with his words and what really has to happen.”
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Michigan is likely to be the state most hurt by changes to the NAFTA trade agreement, according to a Fitch Ratings report released Wednesday, as U.S. President Donald Trump renewed threats to scrap the deal.

Trump has threatened three times in the past week to abandon the North American Free Trade Agreement, revisiting his view that the United States would probably have to start the process of exiting the accord to reach a fair deal for his country.

A second round of talks starts Friday in Mexico City to renegotiate the 1994 accord binding the United States, Mexico and Canada.

Business groups have largely praised NAFTA and hope to persuade all three governments to make minimal changes to the pact. U.S.-Canada-Mexico trade has quadrupled since NAFTA took effect in 1994, surpassing $1 trillion in 2015.

Michigan’s auto sector

While several other states export a significant amount of products to Canada and Mexico, Michigan is an outlier in Fitch’s analysis because of the state’s global role in the automotive sector and proximity to Canada, the report said.

Sixty-five percent of the Michigan’s exports went to Canada and Mexico in 2016, totaling 7.4 percent of its gross state product, it said.

“Any state that is particularly export dependent or exposed to trade, if there’s a falloff in trade it’s going to hit income and sales taxes and that’s going to weaken state revenues,” said Michael D’Arcy, a director of U.S. public finance at Fitch. “Cuts would have to be made.”

Anna Heaton, a spokeswoman for Republican Michigan Governor Rick Snyder, said in a statement to Reuters that Canada, Michigan’s No.1 trading partner, has been important to the state’s economic recovery but he understands that sometimes policies need to change.

11 states trade heavily with Canada

According to the report, 11 U.S. states send at least 30 percent of their exports to Canada. By merchandise value, 82 percent of North Dakota’s exports went to Canada in 2016. Forty-three percent of New Mexico’s exports were sent to Mexico.

Several states also import a substantial amount of Canadian goods.

“A unilateral U.S. withdrawal from NAFTA would sharply increase import tariffs overnight, entailing potentially substantial costs for U.S. importers and consumers,” the report said.

Major metropolitan areas could also be affected by U.S. trade policy changes, with Texas’s El Paso MSA, or metropolitan statistical area, left vulnerable to NAFTA changes, the report said. Exports to Canada and Mexico accounted for 91 percent of the MSA’s exports.
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An abattoir located among herding communities in Ethiopia’s eastern Somali region, known more for droughts and famine than business opportunities, is an unusual stop for a U.S. aid administrator.

But USAID chief Mark Green stopped at the Jijiga Export Slaughter House (JESH) during a visit to the town of Jijiga on Wednesday to see the effects of a crippling drought that has pushed some areas to the south to the brink of famine.

The abattoir buys goats, sheep, cows and camels for slaughter from herders for export to the Middle East, giving families cash to buy food during the drought.

A $1.5-million loan from Feed the Future, a $1 billion-a-year agricultural program launched during U.S. President Barack Obama’s presidency in 2010, helped purchase refrigerators and trucks for the facility, which employs 100 people from local villages.

To Green, the slaughterhouse represents what USAID can do to help attract private-sector money into investments that boost the productivity of small farmers in developing countries.

While at the abattoir, Green announced 12 countries that will benefit from Feed The Future investments in 2017, signaling that the program will survive proposed deep cuts to USAID’s budget this year.

The 12 countries are Bangladesh, Ethiopia, Ghana, Guatemala, Honduras, Kenya, Mali, Nepal, Niger, Nigeria, Senegal and Uganda.

Green said investments like the Jijinga slaughterhouse not only created markets for American businesses but helped communities out of poverty. Herders can earn as much as $80 per goat when they sell to the slaughterhouse.

“I’m under no illusions; the development journey in many places in the world is a long one, but I want us to always be thinking what we can do that nudges something towards a day when people get to take care of themselves,” he said.

“This is a place where we see some of the benefits and the potential for Feed the Future,” Green added.

JESH Chief Executive Faisal Guhad said the abattoir had been open for a year but was forced to close for three months last year because of the drought.

The facility currently processes about 10,000 animals a month. Guhad said he hoped to quadruple that in the second year of operation.

Demand for Ethiopian goat meat was currently high because of the annual haj pilgrimage to the holy city of Mecca, said Guhad.

“We opened at the wrong time. El Nino happened to us and we started again after it rained,” said Guhad. “We’re now in the second month of starting again.”

The facility employs about 108 people from the community and plans to increase hiring to 200, said Guhad.

In the Jijinga area, planting for the March to May rains, known as the belg, is already delayed, and aid workers say they have seen a growing number of women and children at food distribution centers. The hunger crisis is predicted to worsen until the harvest begins in September.

Many parts of the Ethiopian highlands are still recovering from the 2016 drought, which was attributed to the El Niño weather phenomenon in the Pacific Ocean.
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A flood of Indian business in fast-growing Vietnam has solidified commercial ties to help Hanoi upgrade an alliance with a powerful Asian neighbor and offset dependence on its historic rival, the more massive China.

Indian investment in Vietnam has reached $2 billion and bilateral trade hit $10 billion over the year ending in March on its way to $15 billion by 2020, said Radha Krishnan, vice chairman of the Indian Business Chamber of Vietnam.

“As of now that is very easily achievable,” Krishnan said. “The last three … years exports from Vietnam to India have picked up momentum.”

Vietnam has many trade partners

Last year the two countries agreed to upgrade a “strategic partnership,” giving Vietnam more Indian market access, and they will drop import tariffs in 2022 as part of a trade deal with a bloc of Southeast Asian countries.

Those totals hardly match those of Vietnam’s long-time investment sources such as Taiwan, South Korea and China. But their growth offers Vietnam a line to the world’s second-largest country, helping to reduce dependence on China, which is the world’s second-largest economy and Vietnam’s biggest trading partner.

China-Vietnam set a trade target of $100 billion in 2016, but the pair disputes a swathe of the South China Sea. Their dispute sparked clashes in 1974, 1988 and 2014.

“The Vietnamese government, they don’t want to get an unbalanced investment portfolio where any particular country or region is dominant, because then it just unbalances everything else — foreign policy, domestic politics and everything,” said Frederick Burke, partner with the international law firm Baker McKenzie in Ho Chi Minh City.

“As far as people who think about strategic issues are concerned, they would like the Indians to be probably more present in the market, because they’re probably behind mainland China in particular,” he said. “Everybody wants to balance the two out, be friends with both. That’s the ideal situation.”

Robust trade but also continuing disputes with China

Vietnam depends on China for cheap mass market goods, as well as raw materials for export manufacturing. The two Communist countries fought a border war in the 1970s shortly after what was then South Vietnam lost the Paracel Islands to China. That archipelago is part of the South China Sea.

In 2014, the placement of a Chinese oil rig in the South China Sea east of Vietnam touched off a boat-ramming incident and deadly anti-China riots on land. In June, a Chinese military official cut short his Vietnam visit as the host drilled for oil offshore.

Over the past two decades, Indian farming, garment and pharmaceutical investment have reached Vietnam because of its eager partners, Krishnan said. Low-cost but advanced Indian technology has helped Vietnam farm in dry weather, produce sugar and process cashews, he said. Tata Power of India runs a $1.8 billion thermal power plant in Vietnam.

For the past three years, the overseas subsidiary of India’s government-run ONGC has worked with PetroVietnam Exploration Production Corporation to search for oil and gas in the South China Sea.

About 80,000 Indians visit Vietnam every year, often as tourists looking for business opportunities, and 20,000 go the other way, sometimes as travelers to Buddhist landmarks, Krishnan said.

India has its own reasons for strengthening trade with Vietnam

India, for its part, is keen to resist China’s expansion in Asia. The two Asian powers are easing just this week a more than two-month-old military standoff in Bhutan. China claims the area in question, and Bhutan called on India to help when the Chinese came to work on a highway project.

Countries that build trade, investment and economic ties do not always become political allies, but in the India-Vietnam case, that fate is “natural,” said Alexander Huang, strategic studies professor at Tamkang University in Taiwan. China, he added, is unlikely to flinch at India because Vietnam is chasing stronger ties with other powerful countries, as well.

“You don’t need to be a grand strategist to think of diversifying your market,” Huang said. “Of course it will have some kind of impact, but so far I do not see one to the degree that will fundamentally change the Chinese perception over Vietnam, because the United States is improving relationships with Vietnam, Japan is improving relationships with Vietnam.”

A need to resist continued Chinese expansion

Beijing’s “belligerence” and escalation of territorial disputes in the seas to the Bhutan border have “served to bring a coalition of China-wary states closer,” said Mohan Malik,professor at the Asia-Pacific Center for Security Studies in Honolulu.

Elsewhere in Asia, Indonesia, Myanmar and the Philippines have also tried to balance foreign policies between China and the West, often through trade and investment.

China is expected to keep a special eye out for India’s maritime ties with Vietnam. The Indian oil company could work again in the waters off Vietnam, Krishnan said. Officials in Hanoi, he said, would try to protect that investment and others.

“I don’t think it’s going to be a big problem per se,” said Krishnan. “We are very, very positive that both governments will be able to handle that very, very positively. I don’t think investments made in Vietnam by a foreign country or company will be at risk.”
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The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.

 

The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3 percent in the April-June quarter, the Commerce Department reported Wednesday. It was the best showing since a 3.2 percent gain in the first quarter of 2015.

 

The result is a healthy upward revision from the government’s initial estimate of 2.6 percent growth in the second quarter. The growth rate in the January-March quarter was a lackluster 1.2 percent.

 

Improvements in consumer spending, particularly on autos, and business investment powered second-quarter growth. Those revisions offset a bigger drag from spending by state and local governments.

This was the second of three estimates the government will provide for second quarter growth. Even with the upward revision, the weak start to the year means that growth over the past six months has averaged 2.1 percent, the same modest pace seen for the recovery that began in mid-2009.

 

During last year’s presidential campaign, Donald Trump attacked the Obama administration’s economic record, pledging to double GDP growth to 4 percent or better. His first budget, sent to Congress earlier this year, projects growth rates will climb to a sustained annual rate of 3 percent, a goal that many private economists believe is still too optimistic.

 The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists.

 

Many economists had been forecasting growth in the current July-September quarter would be around 3 percent. Some are now saying that the devastation from Hurricane Harvey could shave about a half-percentage point off growth this quarter. However, analysts believe the pace of growth will bounce back once the rebuilding begins and oil refineries get back to full production, bringing down prices.

For the entire year, Mark Zandi, chief economist at Moody’s Analytics, is forecasting growth of 2.1 percent. That would mark an improvement over last year when the economy grew a meager 1.5 percent, the poorest showing since 2009 when GDP shrank by 2.9 percent.

Zandi is forecasting that growth in 2018 will be an even stronger 2.8 percent. But he said 0.4 percentage point of that forecast reflects an assumption that the Trump administration will win a tax cut package that will take effect in early 2018. The economy will also be boosted by higher spending on the military and infrastructure projects, he said.

 

“For the first time since the Great Recession ended in mid-2009, the economy is not facing any significant headwinds,” Zandi said.

 

 
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U.S. sanctions on the finance boss of Venezuela’s oil company PDVSA have led to some exports to the United States being blocked as banks and investment funds refuse to provide letters of credit to potential buyers, three financial sources said.

U.S. businesses are barred from dealing with a sanctioned person or company and one of the sources said the sanctions on PDVSA’s Finance Vice President Simon Zerpa were deterring some businesses from investments with the company as so many of its transactions are linked to the finance department he leads.

A Venezuelan oil shipment to the United States was blocked this month as lenders refused to provide letters of credit to PDVSA customers, the sources said.

Letters of credit, issued by banks, guarantee to a seller that a buyer will pay a specified amount on time when a shipment is accepted. Without a letter of credit, shipments cannot be delivered and the shipper does not get paid. Blocking letters of credit for PDVSA oil chokes off cash that is desperately needed in the OPEC nation.

Petróleos de Venezuela, S.A., commonly known as PDVSA, is the financial motor of President Nicolas Maduro’s leftist government, and it is operating within one of the deepest economic recessions Venezuela has ever experienced and widespread political unrest.

In one instance, U.S. refiner PBF Energy was unable to get a letter of credit for a Venezuelan crude cargo to be received at a U.S. port.

The Suezmax tanker Karvounis has been anchored in the U.S. Gulf for more than a month. It partially discharged its cargo on Aug. 23 in New Orleans, according to Thomson Reuters vessel tracking data. A trader close to the deal said PBF Energy ultimately agreed to a prepayment, removing the need for a credit letter. It was unclear what would happen with the rest of the cargo.

Some U.S. customers can import without a letter of credit if they pay up front.

In July, the United States imposed sanctions on 13 senior Venezuelan officials, including the head of Venezuela’s army, the national police chief, the director of elections, and Zerpa.

At the time, a U.S. official warned that the administration of U.S. President Donald Trump was readying tougher measures that could be part of a “steady drumbeat” of responses to the Venezuelan crisis.

The most serious potential future step would be financial sanctions that would halt dollar payments for the country’ oil, starving the government of hard currency, or a total ban on oil imports to the United States, Venezuela’s biggest customer.

This month the United States imposed its first economic sanctions on Venezuela, banning debt trades for government-issued bonds and bonds issued by PDVSA. 

The problem could spread to more cargoes if banks refuse to extend credit to companies that have a commercial relationship with PDVSA, the sources said.

The sources said foreign oil companies funding projects in Venezuela and financial entities negotiating with PDVSA were avoiding signing agreements that could involve Zerpa.

Major oil company China National Petroleum Corporation (CNPC) has pulled back from funding some operations at its joint venture in Venezuela, a source at PDVSA said.

Neither PDVSA nor the Information Ministry responded to requests for comment. Zerpa was not immediately available to comment.

“PDVSA will face additional trouble just by keeping a sanctioned individual as CFO,” said Jorge Piedrahita, chief executive of broker-dealer Gear Capital Partners, who has been involved with Venezuelan debt for many years.

“Even the Russians and China’s Development Bank should be worried about signing something with him as they can be subject to collateral damage from sanctions just by association.”

A close Maduro ally, Zerpa, 34, rose to prominence by leading the bilateral Venezuela-China fund through which Caracas borrows from Beijing and repays loans in oil and fuel. Venezuela has borrowed over $60 billion from China, earning Zerpa the nickname “Zerpa the Chinese.”

Two additional financial sources said having Zerpa as the company’s head of finance had made it impossible for U.S. entities to assist PDVSA in debt refinancing, even before the U.S. economic sanctions.

Even basic activities, such as a conference call with bondholders, are now essentially unthinkable, the sources said.

Sanctions against Zerpa are having a knock-on effect on Wall Street, affecting imports of food and medicine to Venezuela made through funds headed by Zerpa, according to Delcy Rodriguez, president of Maduro’s new legislative assembly.

“This wasn’t done to affect Venezuelan officials but rather the entire population,” Rodriguez said on Monday.

Zerpa has held several high-profile posts including heading Venezuela’s state economic development bank Bandes and off-budget investment fund Fonden.

Opposition lawmakers have said he is an example of how the late Hugo Chavez’s “21st century socialism” has allowed unprepared political figures to wield power over financial deals.

“I have a negative opinion of him because of the way he handled the Chinese fund,” said opposition lawmaker Angel Alvarado, describing Zerpa as Maduro’s “finance tsar.”

U.S. pressure could force PDVSA to remove Zerpa from his post, at least on paper. However, PDVSA has had issues in the past that have led investors to tread cautiously with Venezuela.

“In part, the sanctions codify an already existing situation in which PDVSA and the Republic have little to no access to international financial markets due to the combination of political risk, unsustainable policies, concerns about legality

of new issues and reputational risk from providing funds to the Venezuelan government,” investment firm Torino Capital wrote in a report to clients after Friday’s sanctions.
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U.S. President Donald Trump is traveling to the state of Missouri to try to build support for his goal of reforming the country’s tax code.

Administration officials say the president will focus on explaining the need for tax reform, but not the specifics of a plan to do so, during a speech Wednesday in the city of Springfield.  They say he will promote tax cuts as a way to help American workers.

Trump has in the past proposed cutting the corporate tax rate from 35 percent to 15 percent.

The U.S. tax code has not undergone a significant overhaul since 1986.

Trump’s Republican Party controls both houses of the U.S. Congress, but failed in its earlier efforts to overhaul another major program as leaders were unable to get enough votes to change the health care system.
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In Texas, rebuilding efforts in areas devastated by Hurricane Harvey’s winds and floods face higher costs and some delays because the construction industry has a critical shortage of skilled workers. VOA’s Jim Randle reports.
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With rising urban populations and ever scarcer water supplies, cities and companies are teaming up to invest billions of dollars in water management projects, a report said on Tuesday.

Around two thirds of cities from London to Los Angeles are working with the private sector to address water and climate change stresses with 80 cities seeking $9.5 billion of investment for water projects, according to a report by the Carbon Disclosure Project (CDP), a non-profit environmental research group.

Water investment opportunities are greatest in Latin America, with Quito in Ecuador seeking $800 million to manage its water supply, including building three hydropower stations and cleaning up its contaminated rivers and streams.

City in India prepares for future

The cities most concerned about their water supply lie in Asia and the Pacific, the report found, with serious risks also identified in Africa and Latin America.

The key issues for cities include declining water quality, water shortages and flooding.

The Indian city of Chennai faced extreme floods in 2015 which killed hundreds and left survivors without access to clean water, while businesses were also severely disrupted.

The city is now investing in boosting its resilience to future water crises, with water conservation education, building a storm water management system and new infrastructure.

“We are seeing critical shifts in leadership from cities and companies in response to the very real threat of flooding, for example, to local economies,” said Morgan Gillespy, head of CDP’s Water Program.

Climate change is another underlying threat to all cities with an increase in extreme weather events from droughts to floods, with cities in North America more concerned than those in Europe, the report found.

Tropical Storm Harvey, pounding the U.S. Gulf Coast, has killed at least eight people, led to mass evacuations and paralyzed Houston, the fourth most-populous U.S. city.

The storm is most likely linked to climate change, said the U.N. weather agency.

Companies are also concerned about the effects of climate change on water supplies, with $14 billion of water impacts such as loss of production reported by companies last year, the report found.

WATCH: Worrying About Water

UN predicts global water shortfall

The United Nations predicts a 40 percent shortfall in global water supply by 2030, while global demand is set to increase by 55 percent due to growing domestic use, manufacturing and electricity generation.

“From our work with cities around the world, water has consistently come up as a key resilience challenge,” said Claire Bonham-Carter, Principal and City Resilience Lead at AECOM, a global infrastructure firm and partner on the report.

“Many of them, regardless of size, from Mexico City, Mexico to Berkeley, California, are addressing both long-term water supply issues as well as chronic urban flooding.”
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The Middle East and North Africa region loses about $21 billion each year because of an inadequate supply of water and sanitation, the World Bank said Tuesday, warning that urgent action is needed to prevent ripple effects on stability and growth.

Poor management of water resources and sanitation in the world’s most water-scarce region costs about 1 percent of its annual gross domestic product, with conflict-hit states losing as much as 2 to 4 percent each year, the bank said in a report issued at the World Water Week conference in Stockholm, Sweden.

Deaths due to unsafe water and sanitation in some parts of the region, particularly countries affected by conflict, are higher than the global average, it added.

“As the current conflict and migration crisis unfolding in the Middle East and North Africa shows, failure to address water challenges can have severe impacts on people’s well-being and political stability,” the report said.

Peril in Yemen

In Yemen, which is reeling from more than two years of conflict, water supply networks serving its largest cities are at risk of collapse due to war-inflicted damage and disrepair, and about 15 million people have been cut off from regular access to water and sanitation, the U.N. children’s agency (UNICEF) said in a separate statement Tuesday.

In Syria, where the conflict is well into its seventh year, water has frequently been used as “a weapon of war,” with pumps deliberately destroyed and water sources contaminated, and about 15 million people are in need of safe water, including an estimated 6.4 million children, UNICEF said.

Overall, 183 million people lack access to basic drinking water in countries affected by conflict, violence and instability around the world, it added.

Better management

With the urban population in the Middle East and North Africa expected to double by 2050 to nearly 400 million, a combination of policy, technology and water management tools should be used to improve the water situation, the World Bank report said.

“Water productivity — in other words, how much return you get for every drop of water used — in the Middle East in general is the lowest on average in the world,” said Anders Jägerskog, a specialist in water resources management at the World Bank and one of the report’s authors.

Middle Eastern and North African countries are using far more water than can be replenished, said the report.

To reverse the trend, technology and innovation are “essential but not enough,” Jägerskog told the Thomson Reuters Foundation. Water governance — in particular, water tariffs and subsidies — must also be addressed, he said.

The region has the world’s lowest water tariffs and spends the highest proportion of GDP on public water subsidies. Such policies lead to excessive use of already scarce water supplies and are not sustainable, said Jägerskog.

Untreated wastewater

Another challenge is that more than half of the wastewater collected in the region is fed back into the environment untreated.

“Along with better water management, there is room for increasing the supply through nonconventional methods such as desalination and recycling,” Guangzhe Chen, senior director of the World Bank’s global water practice, said in a statement.

Improved water management could bring considerable financial returns, the report noted.

Governments could gain $10 billion annually by improving the storage and delivery of irrigation water to users, while increasing agricultural production by up to 8 percent, the report said.

Egypt, Syria and Iran — which have the largest proportion of irrigated land in the region — are the countries that could benefit most.
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