YCLOAK

China Southern Airlines has flown its inaugural Guangzhou to Mexico City flight, via Vancouver, the first route operated by a domestic Chinese carrier to the Latin American nation, the Mexican government said on Tuesday.

China’s interest in Mexico, including tourism and investment, has been on the rise in recent years. In 2016, 74,300 Chinese tourists visited Mexico, up 33.5 percent from a year earlier.

Mexican authorities expect over 100,000 Chinese tourists to visit this year.

China and Mexico recently pledged to deepen ties at a meeting between their top diplomats following the U.S. presidential election victory of Donald Trump, who has tested Washington’s relationship with both countries.

 
…

Several minutes after a passenger recorded a video watched around the world that showed security officers dragging another passenger off an overbooked United Express flight at Chicago’s O’Hare International Airport, a smaller snippet of video showed an even more troubling scene.

There stood the passenger who had been dragged on his back to the front of the plane, appearing dazed as he spoke through bloody lips and blood that had spilled onto his chin.

 

“I want to go home, I want to go home,” he said.

 

The treatment of the passenger on Sunday night prompted outrage and scorn on social media, and anger among some of the passengers on the flight as the unidentified man was evicted.

 

The incident risks a backlash against United from passengers who could boycott the airline as the busy summer travel season is about to begin. For Chicago, it is another public relations nightmare, adding to its reputation as a city unable to curb a crime wave in some neighborhoods, which President Donald Trump has highlighted with critical tweets.

 

The embarrassing incident spiraled out of control from a common air travel issue – an overbooked flight. United was trying to make room for four employees of a partner airline, meaning four people had to get off the flight to Louisville.

 

At first, the airline asked for volunteers, offering $400 and then when that didn’t work, $800 per passenger to relinquish a seat. When no one voluntarily came forward, United selected four passengers at random.

 

Three deplaned but the fourth, a man who said he was a doctor and needed to get home to treat patients on Monday, refused.

 

Three men, identified later as city aviation department security officers, got on the plane. Two officers tried to reason with the man before a third came aboard and pointed at the man “basically saying, ‘Sir, you have to get off the plane,’ ” said Tyler Bridges, a passenger whose wife, Audra D. Bridges, posted a video on Facebook.

 

One of the security officers could be seen grabbing the screaming man from his window seat, across the armrest and dragging him down the aisle by his arms.

 

Other passengers on Flight 3411 are heard saying, “Please, my God,” “What are you doing?” “This is wrong,” “Look at what you did to him” and “Busted his lip.”

 

“We almost felt like we were being taken hostage,” said Tyler Bridges. “We were stuck there. You can’t do anything as a traveler. You’re relying on the airline.”

 

United Airlines’ parent company CEO Oscar Munoz late Monday issued a letter defending his employees, saying the passenger was being “disruptive and belligerent.”

 

While Munoz said he was “upset” to see and hear what happened, “our employees followed established procedures for dealing with situations like this.”

 

Chicago’s aviation department said the security officer who grabbed the passenger had been placed on leave.

 

“The incidence on United Flight 3411 was not in accordance with our standard operating procedure and the actions of the aviation security officer are obviously not condoned by the Department,” the department said in a statement.

 

After a three-hour delay, United Express Flight 3411 took off without the man aboard.

 

Airlines are allowed to sell more tickets than seats on the plane, and they routinely overbook flights because some people do not show up.

 

It’s not unusual for airlines to offer travel vouchers to encourage people to give up their seats, and there are no rules for the process. When an airline demands that a passenger give up a seat, the airline is required to pay double the passenger’s one-way fare, up to $675 provided the passenger is put on a flight that arrives within one to two hours of the original. The compensation rises to four times the ticket price, up to $1,350, for longer delays.

 

When they bump passengers, airlines are required to give those passengers a written description of their compensation rights.

 

Last year, United forced 3,765 people off oversold flights and another 62,895 United passengers volunteered to give up their seats, probably in exchange for travel vouchers. That’s out of more than 86 million people who boarded a United flight in 2016, according to government figures. United ranks in the middle of U.S. carriers when it comes to bumping passengers.

 

ExpressJet, which operates flights under the United Express, American Eagle and Delta Connection names, had the highest rate of bumping passengers last year. Among the largest carriers, Southwest Airlines had the highest rate, followed by JetBlue Airways.

 

___

 

Associated Press Writer David Koenig contributed to this report.

AP-WF-04-11-17 1128GMT
…

With its colonial mansions, landscaped gardens and ornate fountains, the town of Petropolis, a traditional haunt of Brazil’s last monarch Dom Pedro II, retains a grandeur that has not faded since he was forced into exile in 1889.

 

But beneath the opulent surface of the former summer imperial capital, resentment simmers against a special tax, the proceeds of which continue to go directly to the king’s descendants – more than a century after he was ousted.

For many of the 300,000 people living in the hill town, a 2.5 percent tax on real estate transactions is a symbol of social injustice in Latin America’s biggest country where inequality has widened amid its worst recession on record.

Brazil is one of the world’s most unequal places for property distribution with almost half of the land owned by one percent of the population. Colonial-era laws exacerbate the problem, analysts said.

“People aren’t happy to pay this tax,” Isabela Verleun, who works at the Imperial Museum of Petropolis, told the Thomson Reuters Foundation. “It shouldn’t exist.”

Petropolis, known as the Imperial City, is the closest mountain resort to Rio. Just 65 kms (42 miles) northeast of Brazil’s second biggest city, it’s a favored getaway for Rio residents with its forested hills and waterfalls.

It is well known for its 19th century architecture and home of the Imperial Museum, one of Brazil’s most visited museums.

Dom Pedro II and his family spent summers there after 1845 to escape the sweltering heat of then capital Rio de Janeiro.

 

Inside what is now a tourist attraction, children slide along wooden floors as adults marvel at a grand dining room complete with crystal chandelier.

“Ancient and Hereditary”

The town’s special property tax – known as laudemio – dates back to before Brazil’s independence in 1882.

The tax was imported to Brazil by its former colonial master Portugal to ensure land was passed from European settlers to their heirs. In colonial years, Brazil’s land was deemed the property of the Portuguese crown.

Despite becoming an independent republic in 1889, the special tax has never been repealed and is now criticized for continuing to earn money for a few privileged families.

“This ancient tax is hereditary and perpetual,” said Vitor Fernandes, a property law expert at the University of Campinas.

Marco Antonio de Melo Breves, a senior official with Brazil’s federal tax department, could not provide figures on how much revenue is paid annually under the royal property tax or how much it costs the average homeowner.

“There is not a unified database where it’s possible to obtain this,” Breves told the Thomson Reuters Foundation.

Payments are generally made through notaries, or private lawyers who certify documents, Breves said, so the government doesn’t have information on how many royal descendants are receiving benefits from property taxpayers.

Dom Joao Henrique de Orleans e Braganca, a businessman and photographer popularly known as Prince Bishop Johnny, is the great-great-grandson of the final monarch, and counts prominent politicians and artists among his friends.

In an interview with the Brazilian newspaper Valor, Braganca acknowledged some resent the royal family’s continued perks.

The prince said he received “very little money” from Petropolis under the special tax, without giving an amount, but added payments must continue as they are part of a “legal contract” in the city.

Royal Rewards

A fan of the British TV series “The Crown” which showcases the hectic schedules of the U.K. royal family, Braganca said that he does useful work “traveling all over Brazil doing talks in favor of respect for democracy and citizenship.”

The former royal family is not the only institution to benefit from the laudemio and a related land tax known as enfiteuse. The navy and the Catholic Church also levy similar property taxes, said Ely Machado, a lawyer in Rio de Janeiro who helps clients navigate Brazil’s complex housing rules.

A lack of clear property ownership and complex land registration policies are ongoing problems in Brazil, government officials said.

Half the population cannot prove full legal ownership of their homes, according to the Ministry of Cities.

While taxing homeowners based on colonial history may seem archaic, removing the special land tax would require a series of complex legal changes, said Ana Paula Bueno, a lawyer with the Land Governance Group at the State University of Campinas.

When Brazil emerged from military dictatorship and launched a new constitution in 1988 some people pushed for the tax to be abolished, said Verleun, but their lobbying was unsuccessful.

“We have to live with it,” Ana Paula Bueno told the Thomson Reuters Foundation.
…

When they are not tending to international affairs, diplomats based in Havana can be found these days stewing in interminable queues at gas stations and concocting ways to increase the octane in fuel as Cuba’s premium gasoline shortage takes its toll.

Cuba sent around an internal memo last week advising that it would restrict sales of high-octane, so-called “special fuel” in April. That is not an issue for most Cuban drivers, whose vintage American cars and Soviet-era Ladas use regular fuel.

But it is for the embassies that use modern cars whose engines could be damaged by the fuel at most Havana gas stations. So the diplomats are taking a leaf out of the book of Cubans, used to such shortages, and becoming resourceful.

Given the U.S. trade embargo, Cubans have for decades had to invent new ways to keep their cars on the road, replacing original engines with Russian ones and using homemade parts.

“I bought octane booster, and the embassy has bought lubricants, meant to help the motor deal with rubbish gasoline,” said one north European diplomat, who got a relative to bring the booster in his luggage given it is unavailable in Cuba.

“At the moment we are using the car that runs on diesel, so we can ‘survive’,” said an Eastern European diplomat.

Cuba has not announced the measure officially yet. According to the memo, “the special fuel remaining in stock at gas stations from April will only be sold in cash and to tourists until the inventory is depleted.”

“It’s very serious. I have already suspended a trip to Santiago de Cuba for fear of lack of gas,” said one Latin American diplomat, adding that it seemed like the problem would last. “Diplomats are very worried.”

Some embassies in Havana have people scouting out which stations still have some higher-octane fuel and are sending around regular updates to staff. One gas station worker said they were getting small deliveries of fuel each day still.

The embassies are also advising people to carpool or use the diplomatic shuttle.

Meanwhile the European Union has requested from the ministry of foreign affairs that one or more service centers be set aside for diplomats with special gas, according to a European diplomat.

Cuba has become increasingly reliant on its socialist ally Venezuela for refined oil products but the latter has faced its own fuel shortage in recent weeks.

Meanwhile, the Communist-ruled island cannot easily replace subsidized Venezuelan supplies as it is strapped for cash.

Although the memo referred to April, it is not clear how long the shortage will last. Cubans joke that once something disappears in Cuba, it is never to return, referring to products that have disappeared from their ration book like cigarettes, beef and condensed milk.

The Peugeot dealership in Havana has sent its clients lists of technical tips how to protect their motors while using lower-grade gasoline, including more frequent maintenance and ensuring vehicles at running at optimum temperature before driving.

The shortage is also impacting others using modern cars such as taxi drivers, tourists and workers at joint ventures.
…

The airlines are getting better at sticking to their schedules and are losing fewer bags. Their customers seem to be complaining less often.

Those are the findings of an annual report on airline quality being released Monday by researchers at Wichita State University and Embry-Riddle Aeronautical University.

 

The researchers use information compiled by the U.S. Department of Transportation to rate the airlines for on-time performance, baggage handling, bumping passengers off oversold flights, and complaints filed with the government.

 

They planned to release their list of the best airlines later Monday.

 

The report’s general observations:

 

On time performance: The percentage of flights that arrived on time or close enough rose to 81.4 percent in 2016 from 79.9 percent in 2015. Of 12 leading U.S. carriers, only American, JetBlue and Virgin America got worse.

 

Lost bags: The rate of bags being lost, stolen or delayed fell 17 percent.

 

Bumping passengers: Your chances of getting bumped by the airline dropped 18 percent, which doesn’t include people who voluntarily gave up their seat for money or a travel voucher.

 

Fewer complaints: The rate of complaints filed with the government dropped about one-fifth, with complaints rising only for Hawaiian and Virgin America.

 

The official complaint rates don’t include the larger number of complaints that passengers file directly with the airline. The airlines are not required to report those figures.

 

Clearly, however, airlines still have a perception problem. It’s not hard to find passengers who complain about a miserable flight, a missed connection, or shabby treatment by airline employees. Comments like that abound on Twitter.

 

“People don’t look at the numbers,” said Dean Headley, a marketing professor at Wichita State and co-author of Monday’s report. “They just know what happened to them, or they hear what happened to other people.”

 

The Wichita State and Embry-Riddle researchers have been doing their report for more than 25 years, making it useful for comparing airlines. But some observers of the airline industry dismiss their number-crunching approach, and there are many other surveys that purport to rank the airlines.

 

The Transportation Department counts a flight as being on time even if it arrives up to 14 minutes late. “Airlines are happy with that (grace period) because it makes them look better and misleads the passenger,” said aviation consultant Michael Baiada. He said airlines can do better, and besides, travelers pay to be on time — not 14 minutes late.

TripAdvisor releases rankings

 

More broadly, a statistical analysis of government data “really doesn’t take into consideration how the customer is treated,” said Bryan Saltzburg, an executive with travel site TripAdvisor LLC. “`How comfortable are they on the plane? How helpful is the staff? What’s the value for what the customer paid?”

 

TripAdvisor released its own airline rankings Monday, which it said were based on analysis of “hundreds of thousands” of reviews posted by users. It placed JetBlue and Alaska Airlines among the top 10 in the world, and it rated Delta ahead of American and United among the largest U.S. carriers.

 

Other outfits including J.D. Power and Skytrax also put out ratings. Airlines boast when they win. Recently, American Airlines started putting stickers on all 968 of its planes to note that a trade publication, Air Transport World, named it airline of the year.

 
…

India and Bangladesh signed a slew of agreements on Saturday, including a $4.5 billion concessionary line of credit from India for development projects in Bangladesh, as the South Asian neighbors try to deepen their ties.

Indian Prime Minister Narendra Modi and his Bangladeshi counterpart, Sheikh Hasina, held wide-ranging talks in New Delhi, exchanging views on defense, regional security and cooperation in combating international terrorism.

Officials from the two sides signed 22 agreements, including a framework deal for defense cooperation over the next five years and an additional $500 million for Bangladesh to buy military equipment from India.

The two sides also signed an agreement on civil nuclear cooperation under which India will help Bangladesh develop its civilian nuclear program.

Modi said Hasina’s visit marked the “golden era” of India-Bangladesh relations and described India as “a long-standing and trusted development partner of Bangladesh.”

India and Bangladesh share a nearly 4,100-kilometer (2,545-mile) border. The two countries have had a close relationship since 1971, when Bangladesh, aided by India, gained independence from Pakistan following a bloody nine-month war.
…

India and Bangladesh signaled deepening ties Saturday as New Delhi committed a $4.5 billion line of credit to Dhaka for development projects, and the two countries signed their first-ever pact on defense cooperation. 

Indian Prime Minister Narendra Modi announced an additional $500 million in credit for Bangladesh to buy military equipment from India during the visit to New Delhi by Bangladeshi Prime Minister Sheikh Hasina.

Calling India a “long standing and trusted development partner,” Modi said that the new credit lines “bring our resources allocation to Bangladesh to more than $8 billion over the past six years.” 

Both leaders reaffirmed their close ties during the Bangladeshi prime minister’s first visit to India in seven years, with Modi speaking of a “golden era” in their friendship and Hasina saying their friendly ties would benefit South Asia.

The two countries signed 22 agreements, including one on civil nuclear cooperation that aims to help Bangladesh develop its civilian nuclear program.

Many in New Delhi see the deal for defense cooperation over the next five years as the key breakthrough that will help reduce Bangladesh’s reliance on China for its military needs.

Worried by the growing Chinese influence in its neighborhood, New Delhi has made a concerted push in recent years to grow strategic ties with neighboring countries. Bangladesh’s purchase of two submarines from China last year deepened those concerns in India.

Calling the defense pact a feather in India’s cap, Sukh Deo Muni, a South Asia expert at New Delhi’s Institute of Defense Studies and Analyses, said,“India does not want China to consolidate defense ties just next to its belly, that is true.”

Although the political opposition in Bangladesh has denounced the pact, independent analysts in Dhaka was optimistic that it will help achieve balance.

“Approximately 80 percent dependency at this moment you see on China, so it should be brought down. That actually reduces our vulnerability,” said Abdur Rashid, Executive Director of the Institute of Conflict, Law and Development Studies in Dhaka. “If one is interrupted we can depend on the other.”

 A new rail link between the Indian city of Kolkata and Khulna in Bangladesh, and a bus link between Kolkata and Dhaka also were inaugurated, while another old rail link was restored to coincide with Hasina’s visit. The Bangladeshi leader said the greater connectivity is vital for the region’s development.

A key water-sharing agreement that Dhaka has long pushed for, however, eluded Hasina.

Although New Delhi favors such an arrangement, opposition from West Bengal state in India, through which the Teesta River flows into Bangladesh, has prevented the two countries from clinching a deal.

As Modi assured her of his commitment to conclude a deal, the Bangladeshi leader sounded a note of optimism. “I believe we shall be able to get India’s support in resolving these issues expeditiously,” said Hasina.

The two countries have had a close relationship since 1971, when India helped Bangladesh gain independence from Pakistan following a bloody nine-month war.

  

 
…

March was a disappointing month for job seekers, with the U.S. Labor Department reporting that the private sector added only 98,000 jobs last month. But one industry is looking beyond the job numbers and toward distant shores as President Donald Trump meets for the first time with Chinese President Xi Jinping to talk about trade. Mil Arcega reports.
…

Kostas Argyros’s unpaid electricity bills are piling up, among a mountain of debt owed to Greece’s biggest power utility.

His family owe 850 euros to the Public Power Corporation (PPC), a tiny fraction of the state-controlled firm’s 2.6 billion euros ($2.8 billion) in unpaid bills.​

Argyros picks up only occasional work as an odd-job man.

“When you only work once a week, what will you pay first?” said the 35-year-old, who lives in a tiny apartment in an Athens suburb with his unemployed wife and four small children.

The Argyros family are emblematic of deepening poverty in Greece following seven years of austerity demanded by the country’s international creditors. They burn wood to heat their home in winter, food is cooked on a small gas stove, and hot water is scarce.

The only evening light is the blue glare of a TV screen, for fear of racking up more debt.

Five-watt lightbulbs provide a dim glow and Argyros worries about the effect on their eyesight. More than 40 percent of Greeks are behind on their utility bills, higher than anywhere else in Europe.

People in poor neighborhoods are also increasingly turning to energy fraud, meaning that the problem for PPC is much higher than the mountain of unpaid bills suggests.

Power theft is costing PPC around 500-600 million euros a year in lost income, an industry official said, requesting anonymity because he was not authorised to divulge the numbers.

PPC declined to comment on the figure. Public disclosures by the Hellenic Electricity Distribution Network Operator HEDNO, which checks meters, show that verified cases of theft climbed to 10,600 last year, up from 8,880 in 2013 and 4,470 in 2012.

Authorities believe theft is far higher than the cases verified by HEDNO, another official said, declining to be named.

Households in the country are equipped with analog meters, which are easy to hack. One of the most common tricks is using magnets, which slow down the rotating coils to show less consumption than the real amount, a HEDNO official said.

Some websites even offer consumers tips and tricks on power fraud.

Burden of Arrears

For households who have had their electricity cut off, a group of activists calling themselves the “I Won’t Pay” movement have taken it upon themselves to reconnect the supply. The group says it has done hundreds this year.

PPC, which has a 90 percent share of the retail market and 60 percent of the wholesale market, is supposed to reduce this dominance to less than 50 percent by 2020 under Greece’s third, 86 billion euro bailout deal.

The lenders also want PPC to sell some of its assets, but the company is toiling under the debt of unpaid bills, a problem opposition lawmakers say will force a fire-sale.

In little over a year from June 2015, overdue bills to the 51-percent state-owned firm grew by nearly a billion euros to 2.6 billion, Chief Executive Manolis Panagiotakis told lawmakers in March.

Analysts estimate PPC’s cash reserves have shrunk to about  00 million euros, forcing it to secure a 200 million euro bank loan to repay a bond due in May.

The tangle has left it with little leeway for new investments or to fund a switch to cleaner forms of energy from coal to improve environmental standards.

“It is often said that PPC is undergoing the most critical phase of its history,” Panagiotakis told lawmakers. “I will not argue with that.” He declined a Reuters request for an interview.

The burden of arrears for PPC is now “so big that some worry it will not be able to lift it for much longer”, said energy expert Constantinos Filis.

The apartment building where the Argyros family live is a testament to that. Many tenants struggle even to pay the 25 euro annual fee to light communal areas such as staircases.

Ground Zero

PPC has tried to recoup unpaid bills with phased repayment plan. A total of 625,000 customers owing a total of 1.3 billion euros had signed up to the plan by January.

The Argyros family have also entered the plan with the help of Theofilos, a local charity, which also contributes towards their monthly bills.

Meanwhile, PPC’s provisions for bad debt remain high. The plans drove the figure down to 453 million euros in the nine months to September last year from 690 million a year earlier.

Analysts expect PPC to swing back to a profit of between 63-109 million euros in 2016, with provisions of below 600 million euros.

Filis, the energy expert, said the more things stayed the same, the closer PPC was to “ground zero” and he drew comparisons with the Greek state’s brushes with near bankruptcy during the debt crisis.

“It’s reasonable to say that PPC is too big to allow it to collapse, particularly regarding energy security,” he said. “On the other hand, a few years ago some argued that no country could fail either.”
…

A torrid summer and devastating fires across central Chile’s wine belt have forced an earlier harvest this year, but there are no signs that volume or flavor will be affected, local industry experts said on Thursday.

High temperatures can lead to excessive sugar and alcohol in the grapes and the harvest needed to take place as soon as the right level was reached, they said.

Climate change is contributing to record droughts, heat and wildfires in Chile, the world’s No. 4 exporter of wine by volume and the biggest among New World producers, threatening crops and spurring growers to move south to cooler climes.

In December, temperatures in central Chile hit their highest level in a century. The hot, dry conditions sparked the biggest wildfires in the country’s modern history, burning homes and forests and blanketing the entire region in thick smoke.

Most vines had escaped the flames and the bigger worry was the effect of the smoke on the flavor of the grapes, said Angelica Valenzuela, commercial director of industry body Wines of Chile.

“The number of vines burnt was low. But there could be an effect from the smoke which we will see when the harvest is done,” she said in an interview at the Undurraga vineyard near Talagante, 22 miles (35 kilometers) southwest of the capital of Santiago. “For now, the first results are not showing signs of any problems.”

Close to where some of the worst fires raged, Undurraga produces around 2 million cases a year, some 70 percent of which is exported.

The hot conditions in the southern hemisphere summer had forced growers like Undurraga to bring forward the harvest by about a month, with the first varieties picked as early as January, company spokesman Fernando Anania said.

That earlier-than-usual harvest was a challenge to Chile’s winegrowers in logistics terms, but should not have a major effect on volumes or taste, said Anania in an interview.

Exports of Chilean wine grew 0.9 percent in 2016 by volume and 3.5 percent by value, according to Wines of Chile. Last year, for the first time, China overtook the United States to become the industry’s top export destination.
…

Serbian President-elect Aleksandar Vucic likes to use the past to explain the future.

In 1947, as Josip Broz Tito was consolidating Yugoslavia, he built a railway through Bosnia that linked Serbs, Croats and Muslim Bosniaks, friend and foe after World War II.

“Tito wasn’t stupid,” Vucic told Reuters. “People had to work together, build together, then travel together, live together. That’s what we need — connecting.”

Together again

Yugoslavia broke up in war 26 years ago, spawning seven states. Now, the European Union has taken up a project put forward by Vucic that would see five of them — plus Albania — joined once more, this time in a common market.

It would abolish all remaining tariff barriers, lift obstacles to the free movement of people, commodities and services and introduce standard regulations across the region.

The EU wants an outline agreed to in July, seizing on the idea as a way to re-engage with Balkan states unnerved by the bloc’s evaporating enthusiasm for further enlargement and exposed to the growing influence of Russia.

But it has received a mixed reception.

Some apprehensions

Kosovo, for one, fears being roped back into a Serbian-dominated union of the kind it fought to leave; others worry it will only slow their accession to the EU, or worse still replace it.

The EU has delegated development of the plan to the Regional Cooperation Council. Its head, Goran Svilanovic, told Reuters Balkan leaders were “increasingly realistic” about the reduced appetite in Brussels for EU enlargement.

“They see what’s up in the EU,” he said.

But they will work together on the Balkan market plan and with the EU “when it comes to something they see is … bringing change to their daily lives.”

Market of 20 million

For years, the prospect of EU accession has stabilized relations and driven reform in a turbulent and impoverished region. But since Croatia followed ex-Yugoslav Slovenia in joining in 2013, the EU has been beset by problems of migration, Brexit and right-wing populism.

A year later, European Commission President Jean-Claude Juncker ruled out any further expansion until at least 2020.

Stability and democracy in the Balkans have suffered.

Juncker was stating a fact, a senior EU official told Reuters, but in hindsight he had made “a huge mistake.”

“A lot of things that were in progress just stopped,” the official said. Another EU diplomat said Brussels had “dropped the ball” and was trying to re-engage.

Start with market, trade

One of the results is the Western Balkans Common Market, which would build on the Central European Free Trade Area, CEFTA. All six countries are members of CEFTA, but the pact has struggled to stimulate trade within the region and some barriers remain.

Backers of the plan say a single economic space with a market of 20 million people would be more attractive to investors than six small states each with their own red tape.

“Investors would be banging down our doors,” said Vucic, Serbia’s prime minister who was elected president Sunday.

The EU says it would mark a step toward membership, not an alternative.

But it did not go unnoticed that enlargement had no place in a March document by Juncker that set out the options for the EU after Britain leaves in 2019.

“Create your own common market [because you are not joining ours],” was the headline of an opinion piece last month by Kosovo analyst Besa Shahini on the Pristina Insight website.

Kosovo threw off Belgrade’s repressive rule in a 1998-99 war, and is wary of Serbia as the biggest country in the region and a friend of Russia.

“We don’t want to see a Serbia that behaves in the style of Russia, trying to politically dominate the region,” Kosovo Foreign Minister Enver Hoxhaj said of the initiative Tuesday.

Prime Minister Isa Mustafa took to Facebook: “We share different experiences of the past,” he wrote. “We do not want that past to return, repackaged.”

Sokol Havolli, an adviser to Mustafa, told Reuters the project risked slowing the region’s EU integration.

Alternative narratives

Asked if a common market may become a substitute for EU enlargement, Vucic said that “should not and must not” happen but said he had heard, unofficially, of such fears in Montenegro.

The office of Montenegrin Prime Minister Dusko Markovic told Reuters Podgorica had yet to receive a detailed proposal, but that it supported greater regional cooperation.

An Albanian official, who spoke on condition of anonymity, said Tirana was “skeptical.”

Kristof Bender, deputy chairman of the European Stability Initiative, a Brussels-based research group, said he would be surprised if creating a club of poor economies would do much to address the region’s woes.

Nor could it be a “credible alternative” to the narrative of prosperity and stability inside the EU.

“If this narrative evaporates, Balkan politicians will need to look for other narratives,” Bender told Reuters. “Given recent history, this is dangerous.”

Railroad holds lessons

Today, the railway Tito built speaks less of the future than the folly of the past: as trains cross between Bosnia’s two ethnically-based regions, different crews take over, reflecting how power was divided up in order to end the 1992-95 war. Part of the line is no longer used.

Vucic said critics of his idea argued they simply wanted to leave the Balkans behind and join the EU.

So does Serbia, he said. “But does that mean we should lose the next three, four, five years when we know we’re not going to become a member?”
…

The U.S. economy had a net gain of 98,000 jobs in March, which is much weaker job growth than most economists expected.

Payroll growth was slowed by stormy weather in March after unusually good weather helped growth in January and February, according to economist Jed Kolko, of the job web site “Indeed.”

Friday’s report from the Labor Department also said the unemployment rate fell two-tenths of a percent, to 4.5 percent. Government data show that is the lowest level since April, 2007.  The unemployment rate has been five percent or lower for well over a year.

The slight decline in the jobless rate is due to 145,000 people entering the workforce and nearly half a million Americans finding jobs, according to S&P Global Rating’s economist Beth Ann Bovino. She says this is the latest in a series of mostly positive reports on the job market.   

PNC Bank economist Gus Faucher says the job market “is getting tighter and business are finding it more difficult to hire.”  That may force employers to raise wages to attract and keep workers.  

Job gains were found in professional and business services and mining, while retail continued to lose positions.  Faucher also said problems in retail may reflect a shift from traditional stores to on-line commerce.  That shift is evident in the announcement that several major retail chains are closing a large number of stories, according to economist Dean Baker of the Center for Economic and Policy Research.

While the report shows that the total number of unemployed Americans fell by over 300,000, there are still 7.2 million people out of work across the country.  

 
…

U.S. Commerce Secretary Wilbur Ross held out hope Thursday that the Trump administration will revive the U.S. Export-Import bank’s full lending powers, saying the institution is part of its “trade toolbox” to boost exports.

The U.S. government trade lender has been hobbled for the better part of two years by conservative Republicans in Congress who tried to shut it down in 2015 by revoking its charter, and then limited its lending powers last year by blocking nominations to its board of directors.

Big loans impossible

With only two active members on its five-seat board, the bank cannot make or guarantee loans of more than $10 million, preventing it from financing large exports such as U.S.-built commercial aircraft, nuclear reactors or petrochemical plants.

Thus far, Trump administration officials have not said publicly whether they support reviving EXIM’s full lending powers, but some members of Congress say that Trump has told them privately that he supports the institution.

“The bank is part of a domestically focused trade toolbox that this administration will continue to focus on in the coming months,” Ross said in brief video remarks to EXIM’s annual conference in Washington. “We will use that toolbox to rebalance our trade policy in order to put American workers first.”

Ross did not provide details of how EXIM will be used in his trade strategy or whether the administration has specific plans to nominate new board members.

Trump appears to be an ally

He urged hundreds of U.S. manufacturers, lenders and foreign government and company officials attending the meeting to work toward increasing U.S. exports to create jobs.

U.S. Representative Chris Collins of New York, a Republican Trump ally who headed a small manufacturer that used EXIM working capital loan guarantees in the past, told the conference that Trump told him February 16 at a White House meeting that he was “all in” on supporting EXIM.

“We asked him very directly about the five board seats,” Collins said. “The president looked to his right and to his left and said ‘Can you get me some names? I’m all in.’ There was no hesitation whatsoever.”

Reviving EXIM, however, would anger conservative groups backed by the Koch brothers, the influential billionaire Republican donors. The groups have waged a campaign that has painted EXIM as unnecessary corporate welfare even though it is self-funding through the interest and fees it charges borrowers.
…

Conservative activist groups that generally support Republicans but oppose a pro-export, anti-import Republican tax proposal released a study on Thursday estimating its impact on individual U.S. states, underscoring the party’s division over taxes.

The two activist groups, backed by billionaire industrialists Charles and David Koch, reported that seven states won by President Donald Trump in November’s election would be among the 10 hardest hit by the proposal.

Freedom Partners and Americans for Prosperity, both based in the Washington area, said the “border adjustment tax,” or BAT, would harm all 50 states, but that those heavily dependent on imports could suffer most.

The report predicted economic harm to Georgia, Kentucky, Louisiana, Michigan, South Carolina, Tennessee and Texas — all states Trump won in the 2016 presidential election. The list of hard-hit states also includes California, New Jersey and Illinois, which Democrat Hillary Clinton carried.

House Ways and Means Committee Chairman Kevin Brady, a Texas Republican who intends to include the BAT in tax reform legislation this spring, sharply criticized the study.

‘Fantasy figures’

“That so-called study will be easily discredited and probably fits the definition of fake news,” Brady told reporters. “It takes one provision, pretends the economy freezes … applies it in our current tax code and comes up with fantasy figures.”

BAT, billed as a way to boost U.S. manufacturing, would exempt export revenues from federal tax, while ending the deductibility of import costs by corporations, making imports for production or resale costlier.

The plan is part of a tax reform blueprint supported by House Speaker Paul Ryan. Trump is also working on a tax plan.

The proposal is also opposed by a number of Senate Republicans who could prevent its passage, should the House approve a tax reform bill that contains it.

Koch organizations, including the brothers’ privately held conglomerate, Koch Industries, have warned that BAT could devastate the U.S. economy by raising prices on consumer goods, including gasoline. Refineries owned by Koch Industries rely on oil imports from Canada.

The Koch groups say they support tax reform but oppose BAT.
…

White House economic adviser Gary Cohn said he backed bringing back the Glass-Steagall Act, a Depression-era law that would revamp Wall Street banks by splitting their consumer-lending businesses from their investment arms.

The National Economic Council director, also a former Goldman Sachs president, expressed support to lawmakers for a banking system where firms would focus primarily on trading and underwriting securities or issuing loans.

Big banks have strongly opposed such a move that would fundamentally overhaul their business. Reinstating the law, which was repealed in 1999, has not attracted significant attention in Congress, but advocates in the White House and both parties now argue it would provide critical safeguards to prevent another financial crisis.

Critics of that approach say it lacks nuance and would not have prevented the last financial meltdown.

The fact Cohn, widely viewed as one of Wall Street’s own, was willing to push that position spooked big banks’ representatives in Washington.

The White House confirmed Cohn’s remarks in a private meeting with lawmakers on Wednesday. A spokesperson said he was “simply discussing the President’s previously stated position” in favor of a “21st century Glass-Steagall.”

Cohn’s remarks were first reported by Bloomberg.

The Trump administration has indicated support for a return to Glass-Steagall. The White House has stuck by the idea since it was included in the Republican Party platform during the presidential campaign, and Treasury Secretary Steven Mnuchin expressed interest in a modernized version of the law.

When asked on Thursday when large financial institutions should begin to worry about Glass-Steagall becoming a reality, one industry representative said, “Right now.”

However, any legislation establishing such a firewall faces long odds in the current Congress. The heads of the House and Senate banking committees have indicated support for alternative approaches, and efforts to move Glass-Steagall legislation in prior years have garnered little support.

“A new Glass-Steagall would require legislation, and it simply isn’t a priority issue in Congress,” wrote Ian Katz, a financial policy analyst for the research firm Capital Alpha Partners, in a note to clients.

In the meeting which was arranged by Senate Banking Committee Chairman Mike Crapo, Cohn was asked by Senator Elizabeth Warren about Glass-Steagall. Cohn responded favorably, noting that the Republican Party platform supports the idea, according to sources familiar with the meeting. The meeting included lawmakers from both parties and their staff.

Bringing back Glass Steagall would likely have a significant impact on banks like JPMorgan Chase, Bank of America and Citigroup that have large highly intertwined commercial lending and investment banking operations, say analysts.

It would impact Goldman Sachs Group and Morgan Stanley to a lesser degree although, they would likely have to revert to being standalone investment banks and shed their deposit funding.

Here are some details about the law, called the Glass-Steagall Act:

What is Glass-Steagall: Originally passed as part of the U.S. Banking Act of 1933, Glass-Steagall established a firewall between commercial and investment banking activity. The law was whittled away over time as banks gained permission to engage in more trading activity, and was repealed altogether in 1999 with the Gramm-Leach-Bliley Act.

Who supports it?: Since the 2008 financial crisis, Glass-Steagall has become a calling card for politicians eager to crack down on Wall Street. Democratic Senator Elizabeth Warren frequently invokes it, and Senator Bernie Sanders made it a major part of his presidential campaign. President Donald

Trump also seized on the policy during his campaign.

What does the White House say?: The Trump administration has not backed away from his campaign stance, but there are questions about how aggressively the president will push for a new law. The issue only tends to come up when officials are asked about it. Treasury Secretary Steven Mnuchin said he supported a modern version of Glass-Steagall in response to a

question during his confirmation hearing. White House Press Secretary Sean Spicer said the White House supports the proposal when asked by reporters. Cohn responded favorably when asked by Warren at a private meeting with senators.

What would a new Glass-Steagall look like?: There are number

of ideas to create what some refer to as a “21st Century Glass-Steagall.” Warren has proposed splitting commercial and investment banking, and also barring depository institutions from using modern financial instruments like derivatives. Thomas Hoenig, the vice chair of the Federal Deposit Insurance

Corporation, has proposed a similar split, and would subject banks to a higher, 10 percent capital requirement. Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, would force big banks to take on so much capital they would prefer to split into smaller institutions.

Could it happen?: Although many Wall Street critics have seized on Glass-Steagall, efforts to change the law have garnered very little support. Warren’s proposal received just a handful of legislative co-sponsors. And because Congress and the White House are still consumed with complex fights over health care and tax reform, there seems to be little appetite for a

broad, controversial overhaul of the financial system.

Are there risks for banks?: Big U.S. lenders including JPMorgan Chase, Bank of America and Citigroup would be most impacted, because their commercial lending and investment banking operations are closely

intertwined, say analysts. Goldman Sachs and  Morgan Stanley might be less impacted, although they would likely have to revert to being standalone investment banks and shed their deposit funding. But even if Glass-Steagall does not become law, the industry may have to spend money, time and

energy lobbying against the idea, when they would rather focus on rolling back existing rules.
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Protesters in Argentina clashed with police during marches over government austerity measures on Thursday as labor unions challenged President Mauricio Macri in the first general strike since he took office 16 months ago.

Security forces used high-powered water cannon and tear gas to control picketers who had blocked the Pan-American Highway, the main road leading from the north to capital city Buenos Aires, where normally bustling streets were half-empty and businesses were closed.

Truck and bus drivers, teachers, factory workers, airport employees and the government customs agents who run Argentina’s all-important grains export sector walked off the job at midnight for 24 hours.

“No customs officials are here, so there will be no exports or imports today,” said Guillermo Wade, manager of the maritime chamber at Argentina’s main grain hub of Rosario. The country is the world’s top exporter of soymeal livestock feed and the third-largest supplier of soybeans.

Macri took office in December 2015. He eliminated currency and trade controls and cut government spending, including gas subsidies, a move that steeply pushed up home-heating bills.

The strike came as Macri welcomed hundreds of potential investors and foreign officials to a meeting of the World Economic Forum in Buenos Aires. Blocks away from the hotel where the meeting was held, protesters clamored for wage increases in line with inflation, which was 40 percent last year and expected to be about 20 percent in 2017.

“The situation is dramatic,” Julio Piumato, a spokesman for labor umbrella group CGT, said in a telephone interview.

“Wealth is being concentrated in the hands of a few at the same rate that poverty is growing,” he said. “Urgent measures are needed to create employment. One out of every three Argentines is poor.”

The one-day work stoppage came ahead of an October congressional election that will gauge Macri’s strength going into his 2019 re-election bid. The market is concerned about a political comeback by previous President Cristina Fernandez, who boosted the government’s role in the economy during her eight years in power.

Macri took office promising a wave of foreign investment that has been slow to manifest itself. Investors want to see that his Cambiemos coalition remains the biggest vote-getter in heavily populated areas like Buenos Aires, which will be key to the 2019 election.

He was elected after Fernandez left Argentina with rampant inflation, dwindling central bank reserves and a wide fiscal deficit.
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Brazilian President Michel Temer plans to water down its landmark pension reform proposal to ease lawmakers’ resistance to the controversial bill key to rebalance the government’s depleted finances.

Temer said in a radio interview on Thursday he has authorized the lawmaker sponsoring the plan to alter its terms as long as he maintains the bill’s minimum retirement age. He did not specify what changes could take place.

The reform plan, submitted last year to Congress, sets a minimum retirement age at 65 for both men and women and requires more years on the job for workers to gain full pension benefits.

Those points and others to limit benefits have drawn criticism from public servants and labor unions alike, irking lawmakers who face elections next year.

A newspaper survey of lawmakers on Wednesday showed support for the proposal fell well below the 308 votes necessary to pass the lower house of Congress, with only 92 in favor and 242 against.

Arthur Maia, the lawmaker sponsoring the legislation, told reporters later on Thursday that he will change the proposal to protect the poorest without hurting the “backbone” of the amendment. He is considering altering the transition rules for those nearing the retirement age, easing pension requirements for farmers and agricultural workers while keeping some special benefits to teachers and police.

Maia said he will unveil his proposed changes on April 18.

A revamp of Brazil’s costly pension system is the centerpiece of Temer’s crusade to balance the government budget and reverse the rise in public debt as he seeks to lift Latin America’s largest economy from its deepest recession on record.

Still, some investors fear he could face a rocky road ahead due to a bickering Congress and corruption probes ensnaring senior figures of his administration.

Temer could even be unseated if Brazil’s top electoral court rules that he and former President Dilma Rousseff, under whom he was vice president, used illegal money to fund their 2014 campaign. Rousseff was impeached in 2016.

The Supreme Electoral Tribunal (TSE) on Tuesday delayed any verdict in the trial until at least May, playing into what Temer’s aides have outlined as a defense strategy centered on dragging the case out through 2018.

Still, Temer said in the radio interview he wishes that the issue will be solved “as soon as possible” in order to reduce uncertainty.
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Many companies aim for “Best in Class” status, but some are seeking another “B” — B corporation certification.

Certified B corporations, or “B corps,” address the growing consumer interest in supporting socially and environmentally responsible companies.

B corps are essentially for-profit companies that behave more like nonprofits, tackling global issues such as pollution and income disparity through everyday business practices.

‘Business as a force for good’

“B corporations are companies that are using their business as a force for good,” said Andrew Kassoy, co-founder of B Lab, the nonprofit organization that issues B corp certification. “By having that B corp certification, it makes good easy for the consumer … to know that the company is having a positive impact on society,” he added.

For many companies, doing good may take a back seat to making money. But not for certified B corps.

Multimillion-dollar brands like fashion company Eileen Fisher and ice cream maker Ben & Jerry’s are among businesses certified as B corps.

“In some cases, it’s about the company trying to create more value for its workers, to create opportunity for workers to grow in the economy and have a job with dignity,” Kassoy said.

“In other cases, it might be about creating a product that’s more environmentally sustainable or socially responsible,” he said.

Growing around the globe

B corps are a growing global movement. Brands large and small make up the more than 2,000 certified B corporations, representing 130 different industries in 55 countries.

“Our foreign certifications are outpacing our U.S.-based certifications for the last year,” said Jennifer Warden, B Lab’s global partner manager. “We’ve got partners in 13 different regions — a lot in Latin America, Europe, a lot of momentum now in the Asia Pacific regions and Africa.”

To qualify as a B corp, companies must score at least 80 out of 200 points on an assessment that covers four key areas: corporate governance, employee rights, community outreach and environmental impact. Everything from waste reduction efforts to leadership roles for women and minorities are considered.

“You’re able to measure how you rank in terms of taking care of the community, how you rank in taking care of the environment, how you take care of your customer,” said Sean Cullen, project coordinator at Uncommon Goods, a Brooklyn-based online retailer that is a certified B corp.

Assessments are made every two years. In addition to maintaining a minimum score, certified B corps are also required to revise company bylaws to reflect accountability to workers and customers.

Depending on a company’s size, B corp certification costs $500 to $25,000 annually. For many, the payoff is in being among the best in the business.

Look for the logo

“When you see that certified B Corp logo on different products, you know that you’re getting a good product,” Cullen said.

B Lab maintains a website with a B corporation directory so consumers can look up a company and verify its certification.

“The goal is that one day, all companies will be able to manage and measure their impact with the same rigor as their profits,” Kassoy told VOA.

“And by doing that … all companies will compete to be best for the world, not just best in the world,” he said.
…

Many companies aim for B Corporation certification. Certified “B corps” address the growing demand for social and environmental responsibility. And more consumers are letting their wallets do the talking, aligning with business that complement their personal values. VOA’s Tina Trinh reports on the category of companies called B corps.
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Mexico’s central bank chief said Wednesday the bank altered course on how to protect the peso after a couple of tweets by U.S. President Donald Trump in early January pummeled the currency to near historic lows and wiped out the effect of a $2 billion currency intervention.

The Banco de Mexico in early January had sold dollars to fight off the peso’s nosedive to record lows amid fears the protectionist policy pronouncements of then President-elect Trump could further hammer Latin America’s second-largest economy.

“I’ll say it like this, in simple terms: with two tweets from you know who, the effect [of that intervention] vanished,” Mexican Central Bank chief Agustin Carstens said Wednesday.

“It was precisely then we thought that instead of using hard currency like dollars, it would be better to move to a scheme in which there was the possibility of offering hedges” without having to eat into Mexico’s currency reserves, Carstens added.

Carstens did not specify what tweets he was referring to. But Trump in early January targeted Toyota Motor Corp. and General Motors Co. with the threat of a “big border tax” over cars built in Mexico meant for U.S. consumers.

Since then, Mexico’s central bank has moved from intervening directly in the foreign exchange market through dollar sales by implementing an exchange hedging program for up to $20 billion.

The bank earlier Wednesday sold its entire offer of $200 million in foreign exchange hedges in an auction in which demand far outstripped supply, reflecting appetite for the program aimed at supporting the country’s peso currency.

Carstens said that the peso, which fell to a low of nearly 22 per dollar following the U.S. elections in November but has since recouped most of those losses, is still undervalued and has room to appreciate.

Future interest rate decisions by the U.S. Federal Reserve should not cause further depreciation in the peso, Carstens added.

Regarding monetary policy, Carstens also said that depending on the evolution of inflation expectations, the Banco de Mexico may be able to stop following Fed decisions in tandem.
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Asia’s developing economies will see steady growth this year and the next, though the evolving policies of President Donald Trump’s administration are a major uncertainty, the Asian Development Bank said in a report Thursday.

The Manila, Philippines-based lender forecast growth in developing Asia at 5.7 percent in 2017 — unchanged from its previous forecast — and said that pace would continue into 2018.  

 

It said 30 of the 45 countries covered in the report will see sustained growth that will help offset the gradual slowdown in China, Asia’s biggest economy.

U.S. to gradually raise rates

 

However, the risks include unexpected changes to U.S. government policies in areas such as interest rates. The ADB said the uncertainty could undermine the outlook for the region, which accounts for 60 percent of global economic growth.

 

The U.S. Federal Reserve, which raised its benchmark interest rate in March for the second time in three months, plans to gradually raise rates over the next three years as the economy improves.

 

If those rate increases come more rapidly because of stronger than expected U.S. economic growth, the “sharper than expected monetary tightening could have further consequences for developing Asia,” the ADB said in its Asian Development Outlook.

Trump not mentioned

Economies with high corporate or household debt in particular would be most vulnerable to the shock of higher interest rates, the report said.

 

It said that “possible shifts in trade and tax policies, especially policy changes being discussed in the U.S., could create uncertainty for business, investment and export growth in developing Asia.”

 

The report did not mention Trump by name.

 

Trump accused China of unfair trade practices, such as manipulating its currency. He has threatened to impose punitive tariffs on imports from China. Trade is likely to be a big part of the agenda during meetings between Trump and Chinese President Xi Jinping in Florida on Thursday and Friday.

Positive forecast for India

 

The ADB forecast that China’s economic growth will slow to 6.5 percent this year and 6.2 percent in 2018 from last year’s 6.7 percent, a 30-year low.

 

China is due to release its first quarter GDP figures on April 17.

 

In India, growth will accelerate to 7.4 percent in 2017 and 7.6 percent in 2018, from 7.1 percent last year, as the country rebounds from a one-off demonetization of its highest-value currency bills that “temporarily stymied commerce,” the report said.
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With 70 percent of the world’s population expected to live in cities by 2050, getting urban planning right is crucial to ensuring future cities are safe, resilient and fair places, particularly for the poorest residents, experts said Wednesday.

As Africa urbanizes, its cities will need 700 million more homes, 310,000 more schools and 85,000 additional health centers by 2050, said Christian Benimana, a Rwandan architect.

“How we set up all this infrastructure has to be carefully thought through,” said Benimana, who works with MASS Design Group, which focuses on architecture that promotes human dignity.

“It can’t be a random thing, in the way we’ve been doing it for 100 years. We have to think seriously. If we don’t, the current situation where economic inequality is blatantly visible will worsen,” Benimana said.

What not to do

Rapidly expanding Lagos, for instance, a megacity of 23 million, would like to “sanitize” itself and look more like Singapore, said Liz Agbor-Tabi, an associate director at 100 Resilient Cities, a Rockefeller Foundation initiative.

But in its efforts to make that happen, authorities in recent months have demolished swathes of waterfront slums, leaving thousands of people homeless.

“When cities approach their desire to develop this way, it undermines … cohesion, ownership, well-being, belonging and communities,” Cameroon-born Agbor-Tabi said during a panel discussion at the Skoll World Forum on Social Entrepreneurship.

Make poor visible

What needs to happen instead, said Sheela Patel, the chairwoman of Slum Dwellers International, is a genuine rethink of planning efforts to ensure the poor are not seen as invisible or simply an obstacle to growth and development.

“The real fault line in cities is the difference between formal and informal,” said Patel, who directs the Mumbai-based charity. 

“The old rules make all informal [settlements and activities] criminal, illegal and unacceptable,” she said.

That makes it very hard to effectively include slums and poor people in plans to spread the use of clean energy or address climate change, for instance, she said.

When “everybody who is poor is invisible,” city data collected is often inaccurate and that means “the chances you’ll get anything right, even in the next century, seems dismal,” she said.

“Engineering, planning and architecture are very far away from looking at the kind of changes that are needed to create equitable cities that are welcoming to all,” she added.

Better urban life for all

Some cities, however, have shown how changing planning to include the poor can fundamentally improve urban life for all.

As Medellin, Colombia’s second largest city, expanded rapidly a decade ago, slums sprung up in the hills above the city, Agbor-Tabi said.

Without effective transport to reach the city center or opportunities to find work, many slum dwellers ended up working instead for cocaine cartels.

More transit, fewer homicides

When city officials tried to turn things around they not only took on the cartels but consulted with slum residents to try to find out how they could better connect them to the city and give them other opportunities.

In time, cable cars and escalators were installed, linking previously separated parts of the city, and facilities from libraries to cultural centers were built in poor areas.

Eventually the city’s once notorious homicide rate collapsed and poverty was on the decline too, Agbor-Tabi said.

Young and ambitious

Benimana, the Rwandan architect, said good design and planning can help avoid the kind of problems Medellin suffered.

“We strongly believe if we curate the design and construction process as architects we can curb hindrances to economic equality, to gender equality,” he said.

The risks are particularly large as more people gain access to the internet, smartphones and a clear view of how people live in other parts of the world.

World Bank President Jim Yong Kim has called this a “convergence of aspirations” as more people demand a middle-class lifestyle.

“Many people are young, they all have smartphones and they have seriously big aspirations,” Patel said. “They are not like their migrant parents, humble and grateful to be fed two times a day, ready to suffer all injustices.”
…

Three years ago, 14-year-old Julius left his family near the lakeside city of Mwanza, Tanzania, to try his luck mining gold.

Today, Julius is in no hurry to leave, despite having one of the riskiest jobs on a chaotic mine site — handling mercury each day with his bare hands.

“It’s good work. I’m paid well,” Julius, who wanted to use only his first name, told the Thomson Reuters Foundation, wearing an orange T-shirt and skinny jeans coated with red dirt.

Julius, now 17, said he has been working with mercury for three years, but no one had ever told him it was dangerous.

There are more than 4 million child laborers in Tanzania aged between 5 and 17, according to a government survey released last year in conjunction with the International Labor Organization. That’s roughly a third of the country’s children.

More than 3 million are doing hazardous jobs, including at illegal mines like the one near Nyaligongo in northern Tanzania, where they are exposed to mercury, heavy dust and work long shifts without safety gear.

Many unaware of laws

The Tanzanian government is aware of the problem but has struggled to keep children out of small, unlicensed mines. Its laws do not allow children under 14 to work, and hazardous work is not permitted for children over 14. Tanzania has signed all major international conventions on child labor and introduced its own laws to prevent the worst child labor.

But not everyone knows of the child labor laws, including families and local officials.

Government workers tasked with enforcing the laws lack the staff and funds for inspections, let alone prosecutions.

“In Tanzania we have a good law and strategy to eliminate all kinds of child labor, but the problem here is who is going to implement this at the local level,” said Gerald Ng’ong’a, executive director of Rafiki Social Development Organization (SDO), an NGO that works on child labor in northern Tanzania.

“Local officials don’t have enough information about the law and how to protect children.”

Lure of gold

The problem is especially hard to tackle in the informal sector, said Emma Gordon, senior Africa analyst at global risk consultancy Verisk Maplecroft, which ranks Tanzania as the 55th-most “at risk” country in its 2017 Child Labor Index, due to be published Wednesday.

“The government’s focus is very much centered around large industrial projects, particularly foreign-owned businesses that would be able to pay fines if violations were discovered,” Gordon wrote in an email to the Thomson Reuters Foundation.

 

In Lake Victoria’s gold belt, where gold has been extracted since the 1890s, licensed and unlicensed small mines operate with major mining firms close by. The scrappy “artisanal” mines provide a crucial source of income to people outside Tanzania’s cities, but like the mining site at Nyaligongo, many operate without government licences.

The majority of children working in gold mines are employed by individuals running these unlicensed mines, observers say. They are among the worst exploited of the mines’ workers, typically earning the equivalent of about 1 euro ($1) a day.

“Pit owners employ children because they’re cheap labor,” said Ng’ong’a.

Legal or not, the lure of the mines — and the harsh poverty of the farming communities around them — keep children coming.

Brothers Petromos and Mayalamos, 12 and 16, left their village outside Mwanza because they heard there was good money to be made at this mine.

“The work is difficult,” said Mayalamos. “But I can only leave this place once I’ve earned enough.”

Nyaligongo village relies on gold to survive.

On the village’s main street, cramped shops sell vegetables, SIM cards and lunch to off-duty miners. Middlemen purchase gold from miners to sell in the closest town, Kahama, where it is resold in bigger cities like Mwanza and Dar es Salaam.

Students leave to work

More than 8,000 people live in Nyaligongo, says Faustine Masasila, the village’s secretary and a mine site owner, and more are still arriving.

“There are people here who used to have very miserable lives,” Masasila said, walking through the buzzing market. “If you work hard, you are guaranteed prosperity.”

At the primary school down the road, teachers are less impressed with mining’s promise of a good future.

A poster on the school office wall is a testament to the number of children who leave to work when they are old enough.

This year, in Class 1, there are 236 students aged 6 and 7, while in Class 7 there are only 40 students aged 13 and 14.

“I feel very frustrated when children leave and go to the mines instead of going on to secondary school,” said Mabula Kafuku, the education officer for the ward. “They don’t even have enough knowledge to mine safely.”

Children dropping out of school is a nationwide problem in Tanzania and a major impediment to the government’s aspiration to become a middle-income nation by 2025. A recent Human Rights Watch report found that in 2016, more than 5 million children aged between 7 and 17 were out of school across the country.

For government workers tasked with inspecting mines for health, safety and labor violations, enforcing the law at the far-flung informal mines sprinkled around the Lake Victoria region is an onerous task.

Masasila, the village secretary, cannot recall ever seeing inspectors at the mining site near Nyaligongo.

“If you have children working in remote areas, you need a budget to visit. We don’t have such things,” said Hadija Hersi, a regional labor officer in Mwanza. “That’s why you have NGOs stepping in to intervene.”

Some success

Several nongovernmental organizations, including Terre des Hommes Netherlands, have been trying to get child workers back in school and help families develop alternate income sources to wean them off their wages.

Since 2014, Terre des Hommes Netherlands, working with Rafiki SDO, has managed to help more than 725 children leave the mines. In Geita, another nearby gold-mining area, U.K.-based Plan International has helped 12,000 children withdraw from small-scale mining work and is trying to reach another 11,600.

But as long as people are struggling to find work outside Tanzania’s cities, there is only so much NGOs can do.

At the mine, Nyanjige Mwendesha looks on as her three children, ages 10, 12, and 15, sit on the red, dusty ground, smashing up rocks with small metal hammers in the midday sun.

Mwendesha brought her family to work here after there wasn’t enough rain on her farm this year. The family needed the money.

“When it starts to rain, I’ll go back to the farm,” she said.
…

Some big American coal companies have advised President Donald Trump’s administration to break his promise to pull the United States out of the Paris Climate Agreement — arguing that the accord could provide their best forum for protecting their global interests.

Remaining in the global deal to combat climate change will give U.S. negotiators a chance to advocate for coal in the future of the global energy mix, coal companies like Cloud Peak Energy and Peabody Energy told White House officials over the past few weeks, according to executives and a U.S. official familiar with the discussions.

“The future is foreign markets, so the last thing you want to do if you are a coal company is to give up a U.S. seat in the international climate discussions and let the Europeans control the agenda,” said the official, who asked not to be named because he was not authorized to speak publicly on the issue.

“They can’t afford for the most powerful advocate for fossil fuels to be away from the table,” the official said.

Cloud Peak and Peabody officials confirmed the discussions.

‘Path forward’

In Cloud Peak’s view, staying in the agreement and trying to encourage “a more balanced, reasonable and appropriate path forward” on fossil fuel technologies among signatories to the accord seems like a reasonable stance, said Richard Reavey, Cloud Peak’s vice president of government affairs.

The coal industry was interested in ensuring that the Paris deal provides a role for low-emission coal-fired power plants and financial support for carbon capture and storage technology, the officials said. They also want the pact to protect multilateral funding for international coal projects through bodies like the World Bank.

The Paris accord, agreed by nearly 200 countries in 2015, would seek to limit global warming by slashing carbon dioxide and other emissions from burning fossil fuels. As part of the deal, the United States committed to reducing its emissions by between 26 percent and 28 percent below 2005 levels by 2025.

During his 2016 presidential campaign, Trump vowed to pull the United States out of the pact, tapping into a well of concern among his fellow Republicans that the United States’ energy habits would be policed by the United Nations.

Seeking companies’ advice

But since being elected, he has been mostly quiet on the issue, and administration officials have recently been asking energy companies for advice.

White House spokesman Sean Spicer said last week that the administration expected to make a decision on whether to remain a party to the deal by the time leaders of the Group of Seven wealthy nations meet in late May.

The prospect of the United States remaining in the Paris deal has irritated some smaller miners, including Murray Energy Corp, whose chief executive, Robert Murray helped fund Trump’s presidential bid.

Staying in the Paris accord could also face resistance from within Trump’s party. Republican Congressman Kevin Cramer of North Dakota has been circulating a letter among Republican lawmakers calling on the president to stay in the deal but has gathered only seven signatures so far.
…