Toys ‘R’ Us, an iconic United States toy store, has filed for bankruptcy after struggling to compete with online retailers and racking up about $5 billion worth of debt.

In a statement Monday, the company said it is voluntarily seeking relief through the U.S. bankruptcy process, but that its international holdings would not be affected.

“The company’s approximately 1,600 Toys ‘R’ Us and Babies ‘R’ Us stores around the world, the vast majority of which are profitable, are continuing to operate as usual,” the statement reads. “Customers can also continue to shop for the toy and baby products they are looking for online.”

The company said it has begun the process of working with creditors to restructure the debt that its stores will remain open as the bankruptcy plays itself out.

The bankruptcy filing, CEO Dave Brandon said in a statement, “will provide us with greater financial flexibility to invest in our business … and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide.”

The company said it is “well-stocked” for the upcoming holiday season, which has historically been a time when retailers can pad their bottom-line at the end of the year.

Toys ‘R’ Us has seen its popularity fall since the 1980s and ‘90s, when it began losing customers to big-box stores like Wal-Mart and Target, and more recently with the advent of online shopping giants like Amazon.
…

As many as three dozen domestic and international flights at New Zealand’s Auckland Airport have been canceled Tuesday as it struggles to deal with a weeklong fuel shortage.

New Zealand’s main airport has lost 70 percent of its jet fuel supplies since a digger ruptured the main pipeline that carries fuel to the facility, forcing many air carriers to refuel at other airports in the Pacific region. The accident has also cut off supplies of high-grade gasoline at Auckland gas stations, although fuel supplier Z Energy says stocks of regular gasoline are still plentiful.

The pipeline’s owner says the repairs will not be completed until sometime next week.

Prime Minister Bill English says a naval tanker and military trucks have been assigned to transport fuel to ease the shortage, and has ordered all lawmakers and public employees to avoid any unnecessary air travel until the situation is resolved.

The fuel disruption has placed enormous pressure on English with Saturday’s national elections on the horizon. Jacinda Ardern, the leader of the main opposition Labour Party, accused English of ignoring warnings about the pipeline’s vulnerability.

“One pipeline, one digger, and New Zealand grinds to a halt,” Ardern told reporters Tuesday. The 37-year-old politician has led the Labour Party from a certain electoral defeat to a tight race with English’s ruling National Party.
…

A multi-million-dollar banking flap being investigated in Vietnam this month casts light on a tough corruption problem that nips at the Southeast Asian country’s explosive economic growth.

The Vietnamese Ministry of Public Security last week began investigating three companies under state-owned gas and oil giant PetroVietnam on suspicion of trying to divert $5.2 million from OceanBank, a domestic financial institution.

Widespread corruption

The case, analysts say, points to widespread corruption Vietnam. They point to construction, land use contracts and government procurement as particular sore spots. People are also asked for side payments to process official paperwork or get out of traffic violations.

“In terms of corruption in Vietnam, I do think it’s a serious problem here and I think the government recognizes that,” said Frederick Burke, partner with the international law firm Baker McKenzie in Ho Chi Minh City.

Corruption, known to cause waste in business, could hobble economic growth.

Growth driven by export manufacturing makes Vietnam a darling in Asia among foreign investors. The economy grew between 5.2 percent and 6.68 percent each year from 2012 to 2016.

The nonprofit advocacy group Transparency International placed Vietnam at 113th out of 176 countries and regions that it evaluated in 2016 for perceptions of corruption.

“It doesn’t constrain growth. It’s just an added cost of business,” said Song Seng Wun, Southeast Asia-specialized economist with the private banking unit of CIMB in Singapore. “When it’s corrupt, that’s just wastage without any addition to capacity or contribution to productive economic activities.”

New York-based business compliance consultancy Gan Integrity calls corruption “pervasive” in Vietnam. It says companies are likely to face bribery, political interference and “facilitation payments” across industries. Land development and construction fall especially to corruption, the consultancy says.

Reasons for the corruption

Inadequate salaries for government workers, some of whom need extra money to provide for their families, causes a lot of the corruption, said Trung Nguyen, international relations dean at Ho Chih Minh University of Social Sciences and Humanities.

Complex regulations have also pushed companies to seek permitting shortcuts, another source of corruption.

People with capital sometimes hold back expansion to avoid getting enmeshed in graft, adding to a large underground economy, Nguyen said.

He added Vietnamese also face graft when they ask government offices for documents and if police stop them in traffic, eroding overall public confidence in government services.

“I think it’s very bad,” he said. “I have so many friends and they don’t want to open big businesses in Vietnam because they think that they will have to deal with the government and they have to bribe them, and it violates their ethics and their principles.”

PetroVietnam probe

The PetroVietnam probe, as described in Vietnam’s English-language media, fits into a bigger issue at OceanBank.

Reports say more than 50,000 people and 400 organizations benefited from what prosecutors call illegal interest payments worth $70.4 million.

From 2010 to 2014, bank executives offered loans and set deposit rates, above state-approved limits to key customers, including PetroVietnam, local media have reported.

The Vietnamese news website VnExpress calls this case one of the biggest bank fraud flaps ever brought to court in Vietnam.

Some legal cases start with allegations brought by unhappy company employees, Burke said. Only “squeaky clean” firms can build reputations strong enough to eliminate solicitations for graft, he said.

“We do see from time to time perfectly good businesses get disrupted completely by some allegation of corruption,” he said. “Often our employment disputes turn into compliance cases and they trigger full investigations. People lose their jobs. It’s quite traumatic.”

Multinationals get used to graft as a cost of business in emerging economies, Song said, but countries that try to stop corruption grab more sympathy.

Around Asia, investors face similar barriers in Indonesia, the Philippines and China.

Most countries around the Asia Pacific ranked in the lower half of the 2016 corruption perceptions index.

Anti-corruption efforts

Government attention to the issue has surfaced in Vietnam with the roll-out of the Anti-Corruption Law in 2005, a 2009 law on government procurement and the National Strategy on Anti-Corruption, which is due to run through 2020. Domestic media may be widely reporting the OceanBank case to discourage others from graft, Burke said.

In October 2016, the government gave an unusually candid report to the legislature, saying numerous officials had been “neglecting their duties and failing to uphold moral standards and political virtues,” VnExpress reported.

Gan Integrity says sentences for graft in Vietnam range from fines to capital punishment, but that enforcement is lacking.

Vietnam’s anti-graft work, Song believes, is a “work in progress.”

But Transparency International says it sees little public information about the outcomes of anti-corruption work.

“Vietnam’s “top leaders…are not united in stopping the problem,” Nguyen said. “I don’t think they have political will to end corruption.”
…

Two of Italy’s biggest coffee houses are reinforcing their brands with flagship cafes in Milan near the spot where U.S. rival Starbucks is set to begin operations next year.

Lavazza opens its first flagship cafe in the coffee-obsessed city on Tuesday, not far from the renovated 19th century palazzo where Starbucks will open its first Italian store, a ‘Reserve Roasteries’ outlet offering specialty blends and fine food.

Another top Italian brand, illycaffe, opened its own luxury cafe close to the Starbucks site in May, in a cozy courtyard in Milan’s most fashionable street.

Lavazza, which is opening near the city’s famous La Scala opera house, and illycaffe both deny their moves are a response to a global rival’s impending arrival, a first step in what may become a 200-store expansion.

Industry experts suspect it is no coincidence.

“Lavazza and illycaffe are the purists of coffee, they want to show they are there when Starbucks arrives,” says Jean-Paul Gaillard, who ran Nespresso for 10 years before founding the Ethical Coffee Company, a Swiss firm selling coffee pods.

Milan’s battle of the coffee palaces reflects global competition among major brands to capture a growing market for people who are prepared to pay a premium for quality espresso coffees in upmarket boutique cafes.

Nestle last week bought California-based Blue Bottle Coffee, one of the top boutique U.S. chains whose single-origin and cold-brewed coffees have proven popular with hipsters and have made inroads into the Starbucks franchise.

JAB Holdings, the investment vehicle of Germany’s Reimann family, has also been buying up independent start-ups selling premium brews around the world, from Europe to the Americas.

Starbucks Chief Executive Howard Schultz hopes his company’s arrival in Milan, which he calls the home of the “perfect espresso”, and the inspiration for his Starbucks vision, will show discerning Italian coffee-lovers that “we got it right.”

“We are happy to hear about Lavazza’s growth,” said a Starbucks spokesman when asked to comment on Lavazza’s opening.

The U.S. chain will open its 2,400-square-meter cafe in late 2018, seeking to attract tourists, young Italians and the business crowd. If the Milan experiment succeeds, Starbucks and its local partner, Antonio Percassi, could open more than 200 stores in Italy over six years, according to Percassi.

Some analysts are skeptical that Starbucks can crack a market where espresso typically sells for just one euro ($1.20), a fraction of the price of a Starbucks coffee.

But the local brands are also gambling Italians will spend much more than one euro for a restaurant-style experience: illycaffe charges around three times that for coffee brought to the table.

Nestle, JAB Holdings and Starbucks are the three largest players in the global coffee market, followed by several mid-tier players including Lavazza and illycaffe.

“As the biggest get bigger, mid-tier companies are in a position where they must either expand or risk being left behind or swallowed up by their massive rivals,” said Matthew Barry, an analyst at market research firm Euromonitor International.

Lavazza’s chief executive and some of its family owners will cut a ribbon to launch their cafe, where customers can sip a blend of coffee specifically crafted for the store, taste gourmet food and buy single-origin coffees.

“The opening of the new flagship store has nothing to do with Starbucks,” a Lavazza spokeswoman said, adding that it was solely aimed at giving people an exclusive Lavazza experience.

The group is primarily a roaster and supplier to independent cafes and restaurants rather than a retailer and its new store is a way of boosting brand visibility on the high street.

Lavazza went on an acquisition spree three years ago, buying up three coffee suppliers in Europe and Canada, boosting sales to nearly 2 billion euros last year. It has overtaken Starbucks in supermarket sales, Euromonitor International says.

Illycaffe sells its coffee both through independent cafes and 230 mono-brand stores, some of them directly owned, in 43 countries, and says it wants to develop the network further, though not via major acquisitions.

“The new store wants to be a landmark for the global nomad in search for the real Italian lifestyle experience,” illycaffe said, without commenting on the arrival of Starbucks.

Milanese coffee society is divided on whether Starbucks can make its name at the high-end of Italian market, the world’s fourth-largest coffee consumer.

“I am curious about Starbucks, I will give it a try when it arrives in Milan,” office worker Giuseppe Gaggiano, 55, said at a small, upmarket independent cafe close to the Starbucks site.

However, another customer there, Alberto Paparusso, 31, said he wouldn’t abandon his usual cafe: “I don’t like Starbucks coffee. It’s not worth going there.”

($1 = 0.8371 euros)
…

Mexico’s economy minister said on Monday a successful retool of the North American Free Trade Agreement (NAFTA) would hinge on two or three complex areas that he called “elephants in the room,” just days before the next round of treaty talks in Canada.

Speaking at an event in Mexico City, Ildefonso Guajardo said four chapters in the agreement could be renegotiated in the third round of talks, due to take place Sept. 23-27 in Ottawa.

The areas cover smaller companies, transparency and food safety.

The “elephants,” such as the U.S. trade deficit with Mexico and rules of origin, will determine the success of the trade treaty’s renegotiation, he said. Rules of origin specify the percentage of components in a product that must be from the three NAFTA nations for it to qualify as duty free.

“This challenge of resolving two or three un-traditional topics at the trade negotiation tables is what is going to determine if, at the end of the day, we’re going to have an agreement or not,” Guajardo said in a Forbes Mexico talk.

In addition, Guajardo added that as many as 13 other chapters would also be tough to negotiate.

Asked by journalists if Mexico would accept national content rules that would require a portion of products to be made in the United States, the minister said the topic had yet to reach the negotiating table.

“We would analyze it, but I believe as of today there is no trade agreement that contains this type of clause,” he said.

Guajardo reiterated that Mexico was ready to modernize the agreement, which U.S. President Donald Trump has threatened to scrap, and to find solutions with the United States and Canada.
…

The WTO dispute settlement system is “deficient” and has often ruled in favor of free trade that overlooks details of a trade agreement, U.S. trade envoy Robert Lighthizer said on Monday.

Speaking at the Center for Strategic and International Studies, Lighthizer, a trade lawyer, made clear that the administration was poised to push for major changes to the global trade system during upcoming meetings of the Geneva-based trade body. WTO member countries will meet in Buenos Aires on Dec 10.

U.S. President Donald Trump called the World Trade Organization a “disaster” during his presidential campaign and his administration has sought to unilaterally go after countries like China that it thinks is breaking trade rules.

“There are a number of issues on which there is pretty broad agreement that the WTO dispute settlement understanding is deficient,” said Lighthizer, highlighting problems with WTO staffing and transparency.

“The United States sees numerous examples where the dispute settlement process over the years has really diminished what we’ve bargained for or imposed obligations that we do not believe we agree to,” he said.

He added: “There have been a lot of cases in the trade remedies laws where in my opinion the decisions are really indefensible.”

Since its launch in 1995 the WTO has become the main venue for resolving trade disputes between countries. The Trump administration has begun to launch trade investigations under statutes seldom used in the WTO era, including a “Section 301” probe of China’s intellectual property practices.

Lighthizer did not threaten a U.S. withdrawal from the WTO, but emphasized his own dissatisfaction with some of its rulings.

In a letter in March, the Trump administration made clear that U.S. law supersedes WTO rules — a view that could be invoked should Congress adopt policies that are later challenged by other member countries as violating WTO rules.

“We’ve had tax laws struck down, we’ve had other provisions where the WTO has taken…the decision they were going to strike down something they thought shouldn’t happen, rather than

looking at the agreement as a contract,” he said.

Lighthizer emphasized that the Trump administration was reviewing all trade agreements and would seek to renegotiate those that did not benefit U.S. workers and businesses.

“I believe, and I think the president believes, that we must be proactive,” he said, “We must demand reciprocity in home and international markets. So expect change, expect new approaches and expect action.”
…

Peru’s prime minister said on Monday that the country’s new Cabinet will focus on reviving public investments as it seeks to mend fences with the opposition party that forced President Pedro Pablo Kuczynski to form a new government.

Congress ousted the former Cabinet last week following a dispute over education reforms, fueling fears that political fighting might hurt economic growth that has already slowed sharply this year due to floods and a graft scandal.

Mercedes Araoz, Peru’s new prime minister, said on local broadcaster RPP that she was optimistic about rebuilding a working relationship with the opposition. A key test will be efforts to rapidly rebuild parts of Peru hit by flooding, Araoz said.

Congress will likely vote on whether to give Araoz’ Cabinet a vote of confidence in the first week of October, she added.

Araoz is a ruling party lawmaker and former finance minister in the 2006-2011 term of former President Alan Garcia.

Forecasts for an economic recovery in Peru hinge on the government increasing public investments that fell 10.4 percent year-on-year in the first half of 2017.

“Now’s the time. We can’t fall behind in this process” of increasing public investments, Araoz said.

President Kuczynski, a center-right politician and former Wall Street banker, vowed to work to modernize Peru and strengthen the economy of the world’s second-biggest copper producer.

But his first year in office has been marked by slowing economic growth and clashes with Congress, where the right-wing populist party of his former rival Keiko Fujimori has a majority.

Fujimori welcomed the new Cabinet on Twitter after it was sworn in on Sunday and said Kuczynski’s government still has four years to “mend its ways and make progress.”

Similar remarks from opposition lawmakers signaled Congress would likely give the new Cabinet a vote of confidence. But after previous efforts to reset relations failed, it was unclear how long the new truce might last.

Verisk Maplecroft, a global risk analysis company, said Peru has a score of 4.44 out of 10 – a “high risk” ranking – on its government effectiveness index.

Despite Fujimori’s support for the new Cabinet, “the re-tooled team will remain hostage to the Fujimorista-controlled Congress, with Kuczynski’s political credibility continuing to ebb,” said Maplecroft analyst Eileen Gavin.

If Congress fails to approve of the new Cabinet, Kuczynski can summon new legislative elections.
…

U.S. central bank leaders are expected to hold the key interest rate steady this week, but they may begin trimming a huge bond-buying program that was intended to boost economic growth.

Federal Reserve Chair Janet Yellen is scheduled to speak with reporters about those decisions Wednesday afternoon, following a two-day strategy meeting in the U.S. capital. Surveys of economists show they do not expect the Fed to raise interest rates at this time.

During the 2008 financial crisis, Washington slashed the key interest rate nearly to zero in a bid to boost growth and jobs. Over the years, it has worked well enough to help cut the unemployment rate to its current low of 4.4 percent. As the jobless rate improved, interest rates have been raised, but remain below historic averages. 

An additional effort to boost growth involved purchasing trillions of dollars’ worth of bonds. The Fed is expected to gradually reduce this program over the next few years. 

Some experts worry that cutting back stimulus efforts too sharply or too soon could cause the economy to stumble back into recession. But continuing ultra-low interest rates or bond-purchase programs for too long could spark a sudden and sharp increase in prices. That inflation could also damage the economy.
…

The man tasked with overseeing Texas’ Hurricane Harvey rebuilding efforts sees his job as “future-proofing” before the next disaster, but he isn’t empowered on his own to reshape flood-prone Houston or the state’s vulnerable coastline, which has been walloped by three major hurricanes since 2006.

 

Texas A&M Chancellor John Sharp will face the same political and bureaucratic challenges that have long stalled meaningful improvements in storm protections, and some doubt that even Harvey’s record flooding and huge price tag will bring about real change.

 

“It doesn’t give me very much confidence at all,” Houston resident Steve Sacks said of the prospects that the government will get the recovery right. Sacks’s home has flooded four times since 2012, and even before Harvey’s floodwaters near the rooftops in his Meyerland neighborhood, he was frustrated by delays and what he believes is the mismanagement of a government project to elevate homes in the city.

 

“It’s all spur of the moment and not thought out. It’s just, ‘Let’s go ahead and react now to make it look good,”’ said the 46-year-old Sacks.

 

Sharp, who was appointed by Republican Gov. Greg Abbott, follows a line of fix-it men charged with picking up the pieces following major storms in recent years, including Hurricane Katrina in 2005 and Superstorm Sandy in 2012. He has won early bipartisan praise as a practical choice to preside over the efforts to recover from Harvey, which killed more than 70 people and damaged or destroyed more than 200,000 homes.

Sharp is the rare Democrat with sustained relevance in Republican-controlled Texas. He is former lawmaker and state comptroller who was U.S. Energy Secretary Rick Perry’s college roommate at Texas A&M, which Sharp has led since 2011 and will continue to lead while overseeing the rebuilding effort. Abbott joked that he’s now getting calls, texts and emails from Sharp “up to and sometimes well after midnight.”

 

Sharp hasn’t laid out a long-term rebuilding plan yet and most of his public comments so far have been aimed at reassuring hard-hit communities that he won’t be a bureaucratic cog. But he has indicated that he’s thinking about the next disaster, saying “one of the guiding principles will be to future-proof what is being rebuilt so as to mitigate future risks as much as possible.”

 

Abbott spokesman John Wittman said Sharp will be involved in developing a rebuilding plan to “minimize the impact” of future natural disasters and will advocate for funding.

 

But Sharp is constrained in how far he can go in reimagining a more resilient Texas coast. His mandate only pertains to public infrastructure, and not housing, which experts say is crucial to any comprehensive mitigation plan, including buying out particularly flood-prone neighborhoods.

Sharp’s mandate also doesn’t mention zoning changes — Houston is the largest U.S. city with no zoning laws — or how much money the state will put up to deliver on his eventual recommendations. Abbott, who has estimated that the recovery could cost more than $150 billion, has suggested the state will dip into its $10 billion rainy day fund, but not by how much.

 

“When you’re dealing with a limited amount of funds, there are always trade-offs that have to be made,” said Marc Williams, deputy executive director of the Texas Department of Transportation. His agency will work closely with Sharp’s commission, which could recommend elevating certain roads that flooded during Harvey.

 

All rebuilding czars are eventually tested by political and financial realities. Donald Powell, who left his role as chairman of the Federal Deposit Insurance Corporation to be the federal coordinator of Gulf Coast recovery efforts after Katrina, expressed frustration over not being able to speed up the rebuilding.

 

Marc Ferzan, who was appointed by Gov. Chris Christie to oversee New Jersey’s recovery after Sandy, said his biggest struggle was jumping from agency to agency to get funding.

 

“Whether it’s Katrina or Sandy or any major event you’re going to hear the same story. It’s just the way disaster aid is administered. It’s a slow, cumbersome process that is too bureaucratic to respond to the urgency of the situation,” he said.

 

After Hurricane Andrew caused $26 billion in damage to the Miami area in 1992, Florida installed the most stringent building codes in the country. Since 2001, structures throughout the state must be built to withstand winds of at least 111 mph (178 kph), and new codes also require shatterproof windows, fortified roofs and reinforced concrete pillars, among other things.

 

Sam Brody, an environmental planning expert and director of the Center for Texas Beaches and Shores at Texas A&M University, said drainage is among the “low-hanging fruit” that could be addressed immediately to begin future-proofing the coast for the next major storm. But he said the funds and the political determination must be solved.

 

“In terms of will, there hasn’t been the will in the past. Maybe this is a wake-up call, and maybe with his leadership and personality, he can change the way we can think and act,” Brody said of Sharp.

This week, Houston Mayor Sylvester Turner endorsed long-stalled plans for a sweeping reservoir project that might have spared parts of the city from Harvey’s flooding. He also has joined some top Texas Republicans in urging Congress to approve billions to build a coastal seawall that could protect Houston and other areas from deadly storm surges that Harvey didn’t unleash but that future storms could.

 

Turner said Houston “cannot talk about rebuilding” if “we do not build the coastal spine.”

 

How active the federal government will be in making the Texas coast more resilient is unclear. Following Sandy, the Obama administration commissioned a design competition that ultimately resulted in nearly $1 billion in federal funding to kickstart projects that include turning the low-lying Meadowlands into a flood-protected public park and installing bulkheads and seawalls along the Hudson River.

 

The project, known as Rebuild by Design, was just a one-time initiative. And even when things go right, such enormous undertakings are slow to materialize: the first projects aren’t scheduled to break ground until 2019, seven years after Sandy.

 

“You are receptive when you feel like something ripped the heart out of your city,” said Amy Chester, managing director of Rebuild by Design. “Everyone is going to need to say, ‘We’ve had enough.”’
…

Florida’s economy has long thrived on one import above all: People.

 

Until Irma struck this month, the state was adding nearly 1,000 residents a day – 333,471 in the past year, akin to absorbing a city the size of St. Louis or Pittsburgh. Every jobseeker, retiree or new birth, along with billions spent by tourists, helped fuel Florida’s propulsive growth and economic gains.

 

Yet Hurricane Irma’s destructive floodwaters renewed fears about how to manage the state’s population boom as the risks of climate change intensify. Rising sea levels and spreading flood plains have magnified the vulnerabilities for the legions of people who continue to move to Florida and the state economy they have sustained.

 

Florida faces an urgent need to adapt to the environmental changes, said Jesse Keenan, a lecturer at Harvard University who researches the effects of rising sea levels on cities.

“A lot is going to change in the next 30 years – this is just the beginning,” Keenan said.

 

People might need to live further inland, Keenan said, and employers might have to relocate to higher ground, with the resulting competition between offices and housing driving up land prices. It would become harder to adequately insure houses built along canals. Traffic delays could worsen across parts of Florida as more roads flood. Developers might shift away from sprawling suburban tracts toward denser urban pockets that are better equipped to manage floods.

 

At the same time, the belief remains firm among some developers and economists that for all the threats from rising water levels, the state’s population influx will continue with scarcely any interruption. The allure of lower taxes and easier living, the thinking goes, should keep drawing a flow of residents and vacationers.

 

“Irma doesn’t change the fact that there is no state income tax,” said Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness. “In a few months, when the first Alberta Clipper starts blowing down cold weather across the United States and it’s 80 degrees and sunny down here, the memories of Irma will be blown away.”

Certainly, the influx of people has been testament to that appeal. After slowing when the housing bubble burst in 2007, the population has marched steadily upward. The number of Floridians, now above 20 million, is projected to hit 24 million by 2030, with more than half the increase coming from retiring baby boomers. Many of them first experienced Florida as tourists. More than 112 million people visited the state last year – a 33 percent increase over the past decade.

 

All of which means that compared with Hurricane Andrew 25 years ago, Irma struck a far more densely packed state. It is also one marked by greater extremes of wealth and poverty. Luxury condo towers populated by the global elite now crowd the Miami skyline. But the metro area is also cursed by the worst rental housing affordability in the United States, according to Harvard University’s Joint Center for Housing Studies.

 

Flooding washed away mobile home parks in the Florida Keys where lower-income workers live. As a magnet for jobs at restaurants, hotels and other parts of the services sector, the state attracts workers with relatively low incomes who can’t pay higher rents if flooding eliminates a chunk of the housing stock.

 

Still, Citigroup estimated that damages were just $50 billion – well below initial estimates – in part because some homes were better equipped to weather the wind and rain than during Andrew.

Storms can cause population loss in the near term. A year after Andrew hit in 1992, Miami-Dade County lost 31,000 residents. Many appear to have moved to Broward and Palm Beach counties, where the risks of flooding were lower, a pattern that could be repeated after Irma.

Given the brisk pace of construction and population growth, Florida could endure a heavy economic blow in coming decades if it fails to reduce the risks from climate change. Homes that were too close to eroding beaches could become effectively worthless. Those along canals that flood could become too costly to rebuild. The state’s economic fuel – tourism and residential development – could dissipate.

 

Sean Becketti, chief economist at Freddie Mac, the mortgage giant, warned in an analysis last year that rising sea levels and widening flood plains “appear likely to destroy billions of dollars in property and to displace millions of people.”

 

“The economic losses and social disruption,” Becketti added, “may happen gradually, but they are likely to be greater in total than those experienced in the housing crisis and Great Recession.”

 

Federal taxpayers might oppose bailing out these homeowners, Becketti said, mortgage lenders could absorb heavy losses and employers might choose to move to safer parts of the country – and take their jobs with them.

 

Still, for now at least, the heads of several major Florida real estate companies say they expect people to keep flocking to Florida despite the increasing risks.

 

Budge Huskey, president of Premier Sotheby’s International Realty, drove around Naples, Florida, and said he observed “very little damage” to homes constructed under new building codes after Hurricane Andrew. These houses had wind-resistant hurricane windows and stronger roofs.

 

“Let’s face it, people work their whole lives to retire to Florida – that’s where they want to be,” Huskey said.

 

Jay Parker, CEO of Douglas Elliman’s Florida brokerage, monitored Irma from an Atlanta hotel. He was gratified that Florida escaped much of the expected destruction. And he said would-be buyers, sniffing out potential bargains, were approaching him at the hotel about cut-rate deals on condos in the storm’s wake.

 

“If anything,” Parker said, “this might create some short-term buying sprees.”
…

Scandal-hit Brazilian construction company Odebrecht said on Sunday it has sold its 33 percent stake in a massive subway project in Argentina’s capital Buenos Aires, but vowed to keep working in the country.

Odebrecht is involved in a sprawling corruption saga and has already paid $3.5 billion in settlements in the United States, Brazil and Switzerland, embroiling politicians across Latin America.

“Present for 30 continuous years, Odebrecht plans to continue contributing to the development of Argentina in an ethical, integral and transparent manner,” the construction company said in a statement emailed to Reuters.

In July the Argentine justice system banned Odebrecht from bidding on new projects in the country a period of one year.
…

Prime Minister Narendra Modi inaugurated India’s biggest dam on Sunday, ignoring warnings from environment groups that hundreds of thousands of people will lose their livelihoods.

The controversial Sardar Sarovar Dam on the Narmada river in the country’s western state of Gujarat that will provide power and water to three big states was dedicated to the people of India by Narendra Modi.

The project has been beset by controversies since the laying of the foundation stone by Prime Minister Jawaharlal Nehru in 1961. The construction of the project began in 1987.

The dam is the second biggest dam in the world after the Grand Coulee Dam in the United States.

Ahead of the inauguration Modi said in a tweet, “This project will benefit lakhs of farmers and help fulfil people’s aspirations.” (1 lakh = 100,000)

The dam is expected to provide water to 9,000 villages and the power generated from the dam would be shared among three states — Madhya Pradesh, Maharashtra and Gujarat.

The Narmada Bachao Andolan (NBA), led by social activist Medha Patkar, has been protesting against the project, raising several environmental concerns.

Construction on the dam had been suspended in 1996 following a stay by the Supreme Court which allowed work to resume, four years later, but with conditions.

Patkar and her supporters started the protest against the inauguration of the dam on Saturday and the opening of its gates which would raise the level of water and risk displacing several villages.

“Today is a very sad day for India, and for one of our biggest peoples’ movements and struggle — the Narmada Bacchao Andolan,” Ravi Chellam, executive director at Greenpeace India said in a statement.

“The Sardar Sarovar Project… signals ruin not development for tens of thousands of unsuspecting, hapless and poor farmers,” Chellam added.
…

Just a stone’s throw across a narrow waterway from the world’s largest gambling hub Macau, a former oyster farming island is being transformed into China’s newest tourism haven.

Dubbed by some as China’s answer to Florida’s Orlando — a global tourist magnet with its cluster of major theme parks — Hengqin has seen property prices more than double over the past two years.

While still a dusty mass of construction sites, Hengqin now draws millions annually to its anchor attraction, the “Chimelong Ocean Kingdom” theme park, with a slew of hotel, malls and sprawling residential developments being built nearby.

Spanish soccer club, Real Madrid, announced last week they would open an interactive virtual reality complex in Hengqin, in partnership with Hong Kong-listed developer, Lai Sun Group .

The 12,000-square-meter venue, set to open in 2021, will include virtual reality entertainment and a museum showcasing the club’s history.

​Oysters to Orlando of China

The transformation of Hengqin, which is three times as large as Macau, is part of Beijing’s efforts to bolster links between Hong Kong, Macau and nine cities in the Pearl River Delta region, or so-called “Greater Bay Area,” modeled after other dynamic global bay areas such as Tokyo and San Francisco.

“Hengqin will be the Orlando of China. Macau is Las Vegas (and) Hong Kong is New York,” said Larry Leung, an executive with Lai Sun that is helping build the Real Madrid complex at its “Novotown” project in Hengqin. “Within an hour you can have them all.”

Novotown’s entertainment mix will also feature China’s first Lionsgate movie world with theme rides from blockbuster films such as the Hunger Games and Twilight, as well as a National Geographic educational center. High-end hotel chains and luxury yacht makers are building more hotels and a marina on Hengqin.

​Expanding Macau

Chinese officials see Hengqin helping Macau diversify away from casinos to a more wholesome tourism industry. More than 80 percent of Macau’s public revenues come from the gambling sector.

Businesses in Macau have been encouraged to invest in Hengqin with the government providing cheaper rent and tax subsidies. Galaxy Entertainment, Shun Tak and Macau Legend have also earmarked developments for Hengqin.

Realtors expect property prices to keep rising once a sea bridge linking Hong Kong, and a high-speed rail station are completed.

Hoffman Ma, deputy chairman of Success Universe Group, which operates the Ponte 16 casino in Macau, said Hengqin could take some convention and exhibition business away from the former Portuguese colony.

“It doesn’t make sense for Macau to do that, due to a consistent labor shortage,” he said.

Big population, more theme parks

Wang Lian, from Wuhan in central China, brought his daughter to watch whale sharks and polar bears at Chimelong Ocean Kingdom recently.

Industry reports show 8.5 million people visited China’s top theme park last year, more than Hong Kong Disneyland’s 6.1 million, and almost a third of the 28 million people who visited Macau last year.

“China’s population is so big they need something like this nearby … its (Hengqin’s) economic ties will also help Macau develop,” Wang said.
…

When Hurricane Irma hit the Florida Coast, the Islamic Circle of North America arranged shelter. After it passed, they provided relief. Its volunteers — made up of immigrant and nonimmigrant, Muslim and non-Muslims — has opened minds and hearts wherever they go, to their shared desire to give back to the country.
…

When Hurricane Irma battered the Florida Coast, volunteers of the Islamic Circle of North America (ICNA) arranged shelter.

After it passed, they provided relief — from flood-damaged homes in Naples to uprooted tree trunk clearings in Cooper City, Florida.

Abdulrauf Khan, a Pakistani immigrant and assistant executive director at ICNA Relief USA — a network of disaster relief and social services — has been through all of it. Anytime a natural calamity strikes, he’s present.

Khan describes his motives as two-fold: a desire to assist his neighbors, while empowering his three children.

“I have a son who is 18 years old,” he begins to recount a vivid memory. “He asked me five years ago, ‘Dad, what have you done for this country?’”

It’s a simple question that would provide clarity to Khan’s mission.

“We have to work and we have to make sure our children feel that ownership of the country,” he said. “We have to give back.”

‘A basic part of the religion’

From Hurricanes Harvey to Irma, there are many Texans who embrace the work of Muslim relief volunteers, and select others who are hesitant to grant their trust, based solely on religion. But regardless of their reception, ICNA answers the call to assist, and changes some minds in the process.

“Charity is a big part of Islam, and giving back to the community is a big part of Islam,” says Aqsa Cheema, administrative coordinator for ICNA Relief South Florida.

Cheema, 22, a generation Pakistani-American who assisted with Irma relief, says she has been in the habit of giving back since she was a kid, attending mosque.

“You go along with it, and you get the chance to distribute food and do things that can benefit the community,” she says. “That’s just a basic part of the religion.”

Open hearts, open arms

Earlier in the week, as Irma’s ruthless winds pounded the state indiscriminately, ICNA facilitated shelter for Floridians — any and all Floridians —  in a Boca Raton-based Islamic Center.

Some of their guests said they had never met a Muslim.

“It was their first experience coming to an Islamic Center,” Khan said. “They felt like, ‘this is what we feel like when we go to church, when we go to synagogue’” — welcome, and at home.

Cheema, who is studying to be a social worker, describes her work as enriching, but never complete.

“That lack of true fulfillment is what keeps me going,” she says.

“I accept the fact that I can’t help everyone, but maybe if I help one person, and someone sees me helping that person, they will be like, ‘Hey, you know what? It felt nice to bring a smile on a person’s face. I can help them too.’”
…

Think of it as motorbike banking.

For Vietnamese who live far from a retail bank branch, VietinBank scrambles scooters so its officers can meet clients where they live, tablet in hand.

There’s also the strategy of DongA Bank, which decks out a van with four ATMs and parks it near factories to reach laborers.

All across Vietnam, people are heeding the government’s call for “financial inclusion,” the global buzzword for bringing banks to the masses, and all the better if it can be digital. Hanoi has staked out some national targets for the year 2020, including an ambitious reduction in the share of transactions based on cash, down to a whopping 10 percent.

That goes hand in hand with other targets, like increasing the number of point-of-sales (POS) devices to 300,000, and getting 70 percent of utility payments done electronically.

But most seem to think those will be a tough goal to meet and that cash, the Vietnamese dong, will stay king.

“Cash will not disappear in Vietnam soon,” State Bank of Vietnam payment director Le Anh Dung conceded, even as he’s promoting a cashless society.

But nevertheless, the communist country is seeing a very visible sea change in the digitization of the economy.

Take utilities. To pay for water or power, Vietnamese used to have only the cash option, which meant either stopping in at the post office, or waiting for a collector to ring the doorbell. But now convenience stores from 7-Eleven to Circle K have mushroomed around cities, and with them comes an explosion of POS devices that accept utility payments.

Downsides to branchless banking

But the push toward more sophisticated finance is not all smooth sailing. Customers worry their bank accounts can be hacked, in the same way that thieves can purloin Vietnamese dong stashed in the mattress. Programs that let workers borrow against their salaries to buy phones or fridges risk breeding a culture of debt and consumerism. And citizens have been slow to adopt branchless banking tools like e-wallets Moca, MoMo, and Payoo, which are Vietnam’s answer to PayPal.

“At the moment, the mobile wallet has really taken off — in terms of institutions,” but not so much in terms of customer use, said Kalidas Ghose, CEO of the consumer finance company FE Credit, speaking last week at the Seamless e-commerce conference in Ho Chi Minh City.

At the conference, Dung praised the innovations of global brands like Alibaba’s use of QR codes, Amazon’s one-click pay option, and Uber’s “invisible” transactions, meaning users don’t have to lift a finger and the app charges them instantly after each ride. What the three have in common is to make it close to effortless for customers to hand over their money.

Uber, though, also provides a counter-example of a foreign business adapting to the indigenous reliance on cash in Vietnam. This is one of the few countries where the San Francisco-based company allows riders to pay with hard currency.

Google, similarly, allows people in a number of places, including Vietnam, to make purchases in Google Play through their phone credits.

These are a workaround to keep customers who don’t have debit cards, and they demonstrate the transition that societies undergo on the road to cashless economies.

For Vietnam the transition has been multifaceted.

Vietnam’s financial evolution

About a decade ago, most businesses paid their employees in physical dong. Then policymakers and bankers campaigned to turn that process into direct deposits.

“We encountered huge challenges because everybody wanted salary in cash and thought it was a hassle to use the card,” DongA Bank deputy CEO Nguyen An said. But the bank collaborated with employers and union leaders to change people’s minds.

Then came online retail. Vietnam’s e-commerce market was worth $400,000 in 2015 but will grow to $7.5 billion in 2025, according to a report from Google and Temasek, the Singapore sovereign wealth fund.

Officials are happy to see more people move to the Internet, but they’re not quite as digital as hoped: 89 percent of Vietnam’s online shoppers use cash on delivery, said Dung, who wants more buyers to pay with plastic or wire transfers.

Next in the Southeast Asian country’s financial evolution are plans to digitize public services,so that Vietnamese can pay electronically for hospitals, traffic tolls, schools, and other fees.

After that, locals predict further use of blockchain, the virtual ledger system behind bitcoin. Nicole Nguyen, head of marketing at Infinity Blockchain Labs, expects Vietnam will find applications for agriculture, the internet of things, and financial technology.

“We think that these are the three areas where blockchain can thrive in the next few years,” she said.

For now, mobile banks will continue to roam the cities of Vietnam, searching for customers.

 
…

Jim McIngvale was standing in the parking lot of Gallery Furniture, greeting drivers and directing cars as they trickled in one sunny afternoon.

It had been a week and a half since his local furniture store chain opened the doors to its showrooms and offered shelter to hundreds of Houstonians during Hurricane Harvey.

Everyone had since relocated to other shelters, but McIngvale and his employees remained in disaster-relief mode as a long line of men, women and children snaked across the parking lot. On this day, drinking water, cleaning supplies, toiletries, clothing and free pizza were being handed out.

“My parents taught me that the essence of living is giving,” McIngvale said. “That’s who I am, that’s what we do.”

The local businessman and philanthropist is a longtime fixture in the Houston community, and he received national media attention along with an outpouring of public support for his latest efforts.

What about the bottom line?

How businesses respond in times of disaster can either enhance or undermine their public image. But does it affect their bottom line?

McIngvale didn’t seem concerned.

“After this hurricane, we took the people in and we said, ‘to hell with profit, let’s take care of the people,’” McIngvale said. “Profit takes care of itself. If you take care of the people, the people will take care of you.”

“When businesses make public stands and they make public commitments to do good things, consumers take notice,” said Utpal Dholakia, a professor of marketing at Rice University.

According to Dholakia, doing well and doing good don’t have to be mutually exclusive. Businesses are a part of the community in which they operate, and as a result, community members can be seen as stakeholders. Businesses thrive when communities support them and vice versa.

“The company tries to do something good for the community and it actually helps them sell more and also make more money,” Dholakia said.

Employee Juan Rea has worked at Gallery Furniture for more than 30 years and has seen firsthand how McIngvale’s responses over the years have resulted in community members giving back to the business.

Hurricane Harvey evacuees slept on the store’s sofas and mattresses, and later were offered discounts of 20 percent to 40 percent off the same furniture, according to Rea.

“He helps the people and he makes money also,” Rea said.

Or taking advantage

Meanwhile, taking advantage of trying times for the sake of a buck can result in a public relations nightmare.

A local Best Buy electronics store decided to price a case of water at an exorbitant $42.96. After a customer snapped a photo and posted it on Twitter, the resulting public outrage prompted a public apology from company officials.

Why different responses?

In emergency scenarios, why do company responses vary so widely? Dholakia said that can be attributed to differences in management thinking and companies’ corporate cultures.

“Some managers have a very detailed plan of action in place about how to react when something like a hurricane or a similar natural disaster happens. So they’re able to execute their plan of action right away,” Dholakia said. “Other companies react in a slower way because they’re not prepared.”

McIngvale clearly was ready.

“Get prepared, get some sleep,” he told his employees before the hurricane. Rea worked seven consecutive days to aid evacuees, and after a day off, he was ready to keep going.

While it’s hard to quantify how a company’s bottom line benefits from good deeds, Dholakia said giving back can only help boost a brand’s standing in the eyes of its customers.

“It creates a positive knowledge association for the brand, which then feeds into the rest of the things that the customers know about the brand,” Dholakia said.

With so many advertisers vying for our dollars online and offline, good deeds become a way to rise above the noise.

“It is harder and harder to gain consumer attention in this fragmented media landscape,” Dholakia said. “Suddenly, you do something positive for the community and everyone is talking about it.”
…

During natural disasters, why do some companies open their doors to the community while others take advantage of its members? Tina Trinh explores the reasons why businesses react the way they do and the cost to their public image.
…

One of China’s biggest bitcoin exchanges says it will end trading after news reports that regulators have ordered all Chinese exchanges to close caused the price of the digital currency to plunge.

 

BTC China said on its website it will “stop all trading business” Sept. 30. The exchange said it was acting in the spirit of a central bank ban last week on initial coin offerings but gave no indication it received a direct order to close.

 

The central bank has not responded to questions about the currency’s future in China.

 

There was no immediate word from other Chinese bitcoin exchanges about their plans.

 

Bitcoin’s value tumbled 15 percent Thursday to about $3,300. The famously volatile currency has shed about a third of its value since Sept. 1 but is up from about $600 a year ago.

 

Bitcoin surged in popularity in China last year as its price rose. Trading dwindled after regulators tightened controls and warned the currency might be linked to fraud.

 

Bitcoin is created and exchanged without the involvement of banks or governments. Transactions allow anonymity, which has made bitcoin popular with people who want to conceal their activity. Bitcoin can be converted to cash when deposited into accounts at prices set in online trading.

 

A Chinese business news magazine, Caixin, said at one point up to 90 percent of global trading took place in China.
…

Radio Free Asia has joined the ranks of media outlets shuttered under the now almost blanket smothering of an independent press in Cambodia, as U.S. and European diplomatic efforts have failed, so far, to halt the county’s descent into authoritarianism ahead of elections next year.

The closure of the U.S.-funded outlet, due to what it called intimidation, represents another escalation in opposition to Washington by Prime Minister Hun Sen.

Conciliatory overtones made in a news conference Tuesday by U.S. Ambassador William Heidt have failed to halt the government’s campaign to paint Washington as the masterminds of a vast conspiracy involving all major opponents of the government.

“These are extraordinary allegations. The business of diplomacy is normally carried out with careful and respectful language, the kind of language I’m going to use today. Difficult messages are delivered privately first. Friendly nations seek ways to bridge differences,” he told reporters.

Two days later, the government mouthpiece Fresh News posted an article declaring the United States “should take a helicopter to transport its citizens from Cambodia, as it did in April 1975.”

Having spent billions of dollars promoting a stable, nominally democratic Cambodia, the United States and the European Union now have only a beleaguered opposition to show for it. The party’s leader, Kem Sokha, was arrested this month in connection with Washington’s alleged grand plan.

“Basically, after tens of billions of dollars invested in Cambodia, we’re back where we were 25 years ago … the more things changed, the more they actually stayed the same,” said Sophal Ear, author of Aid Dependence in Cambodia: How Foreign Assistance Undermines Democracy.

China’s deep pockets are often cited as an unstoppable force whittling away Western leverage in Cambodia, and Beijing has offered public support for Cambodia’s arrest of Sokha.

Returning from China on Wednesday, Hun Sen praised Beijing as “a strong backer who continues to help Cambodia in all circumstance, which no foreign [countries] can break.”

But Cambodia’s economic entanglements are far more complicated than mere aid contributions, and as tension with Western powers intensifies, drastic measures that would be considered unthinkable under normal circumstances could come into play.

Access to markets

Aid to Cambodia is measured in millions of dollars, but export markets are measured in the billions.

The United States is its biggest individual country export market at $3.5 billion, or 22 percent of the total, according to the Observatory of Economic Complexity (OEC), an online resource for economic data. China accounts for just 4.4 percent.

Cambodia also benefits handsomely from preferential access to European markets, with its exports there rising from just above $595 million in 2006 to about $5.25 billion in 2016 — under a scheme that has both labor and human rights clauses. In comparison, Cambodia has an enormous trade deficit with China of around $3 billion, OEC data show.

The EU has withdrawn a country’s access to these markets three times: from Sri Lanka in 2010 for human rights violations carried out during that country’s civil war, from Myanmar in 1997 for forced labor and from Belarus in 2007 for failing to respect the basic rights of trade unions.

“What could trigger such a procedure is a serious and systematic violation of one of the listed fundamental human rights or labor rights conventions,” an EU spokesperson told VOA.

So while it is true that Chinese foreign investment in and aid to Cambodia increased dramatically — in 2015 its foreign direct investment eclipsed all other countries combined at around $1 billion — the assertion that the West’s relationships with Phnom Penh are rendered meaningless as a result is not the full picture.

“The last thing Hun Sen would want would be to provoke the U.S., whether the Congress, White House or U.S. trade representative, to raise Cambodia’s market access to the United States. Unrest by textile workers would destabilize the Hun Sen regime and provide grist for the opposition mill,” said Carl Thayer, an emeritus professor at the Australian Defence Force Academy.

There are more than 700,000 registered garment workers in Cambodia in an industry heavily reliant on Western markets.

Bigger fish to fry

Some are interpreting new U.S. visa restrictions on Cambodians as a punitive measure. But other than that and the usual statements expressing concern and urging transparency, the response in the West has been muted, especially in Washington.

“I can only surmise that the State Department is in disarray with the new Trump administration, a new secretary of state with little experience in diplomacy, vacancies at the senior level, and impending budget cuts,” Thayer said.

“There has been no response by the Trump administration to Hun Sen’s cancellation of military exercises with the U.S. earlier this year. Since Trump’s Afghanistan speech, in which he nixed nation-building and democracy promotion, who at State will take any initiative against Hun Sen?” Thayer asked.

Trump has also abandoned U.S. participation in one of the State Department’s sharpest diplomatic tools in Asia, the Trans-Pacific Partnership trade agreement.

Meanwhile, higher priorities are bountiful, even in Asia.

“Whether we like it or not, Cambodia is not one of the so-called hot spots of global politics. The international community’s focus is on countries like Afghanistan, Pakistan or Myanmar,” said Barbara Lochbihler, vice chair for the European Parliament’s Human Rights Committee.
…

Your afternoon chocolate bar may be fueling climate change, destroying protected forests and threatening elephants, chimpanzees and hippos in West Africa, research suggests.

Well-known brands, such as Mars and Nestle, are buying through global traders cocoa that is grown illegally in dwindling national parks and reserves in Ivory Coast and Ghana, environmental group Mighty Earth said.

“Every consumer of chocolate is a part of either the problem or the solution,” Etelle Higonnet, campaign director at Mighty Earth, told the Thomson Reuters Foundation.

“You can choose to buy ethical chocolate. Or you’re voting with your dollar for deforestation.”

Mars and Nestle told the Thomson Reuters Foundation they are working to tackle deforestation.

“We take a responsible approach to sourcing cocoa and have committed to source 100 percent certified sustainable cocoa by 2020,” Mars said in an email.

Both companies have committed to join the Cocoa and Forests Initiative, a major effort to end deforestation in the global cocoa supply chain, launched in March.

“We will be working to ensure human rights are given a high priority alongside the environmental aims of this initiative,” Nestle said in emailed comments.

Conversion to plantations

Almost one-third of 23 protected natural areas in Ivory Coast that researchers visited in 2015 had been almost entirely converted to illegal cocoa plantations, the report said.

Researchers said the practice is so widespread that villages of tens of thousands of people, along with churches and schools, have sprung up in national parks to support the cocoa economy.

Ivory Coast, Francophone West Africa’s biggest economy, is the world’s top cocoa grower.

While the bulk of its 1 million cocoa farmers ply their trade legally, Washington-based Mighty Earth estimates about a third of cocoa is grown illegally in protected areas.

Deforestation for cocoa happens in sight of authorities and chocolate traders are aware of it, they said.

Loss of natural forests is problematic because they act as a home for the region’s wildlife and a key weapon against climate change, absorbing carbon dioxide — a major driver of climate change — as they grow.

Available land for new cocoa plantations in Ivory Coast ran out long ago, so farmers have moved into parks and reserves, taking advantage of a decade of political crisis that ended in 2011.

Ivory Coast’s now has about 2.5 million hectares (6 million acres) of natural forest, a fifth of what it had at independence in 1960, according to European Union figures. Most of the losses have been caused by expanding agriculture.

The government has struggled to evict farmers from forest reserves amid accusations in 2013 of human rights abuses by security forces.

Details of the Cocoa and Forests Initiative, which is initially focusing on Ivory Coast and Ghana, will be announced by November’s global climate talks in Bonn.
…

More than 50 local and national charities have raised more than $350 million in the nearly three weeks since Hurricane Harvey struck the Texas Gulf Coast, and the disparate groups are trying to decide on priorities while some storm victims still await help.

Distrust of large charities such as the American Red Cross has driven many donors to smaller, local organizations. For instance, Houston Texans football star J.J. Watt has raised more than $30 million for his foundation, an effort he started by posting appeals on social media.

One donor to Watt’s effort, Helen Vasquez, stood outside the Texans’ stadium and said she had seen a Facebook post listing the salaries of executives at top national charities. She gave Watt $20 instead.

“It’s all going to the people itself and not to the corporations, not the higher-ups in the corporations,” Vasquez said.

But most of the money raised for Harvey has gone to the Red Cross, which has raised a least $211 million. The rest went to other organizations, including 40 groups listed by Charity Navigator, as well as dozens of other groups and individual families raising money on do-it-yourself sites such as GoFundMe.

More than $50 million has poured into the local fund set up by Houston Mayor Sylvester Turner and Harris County Judge Ed Emmett, the county’s chief administrative official.

Turner and Emmett openly urge donors to give to the local fund and not the Red Cross, saying doing so will ensure the best use of the money.

Emmett has blamed the Red Cross for problems that arose with setting up and running the emergency shelters used by tens of thousands of people who were flooded out of their homes.

The Greater Houston Community Foundation, which the men have asked to administer the fund, is creating a 12-member board and a grant committee to set priorities and distribute donations starting in the next several weeks. The foundation is working with the United Way and dozens of other charities, but so far not with the Red Cross or with Watt, who did not respond to questions sent through a spokesman for the Texans.

David Brady, CEO of the Red Cross of the Texas Gulf Coast, said his group would be “happy to be a part of all conversations” and that the Red Cross would review how it could improve its shelter operations in the future.

“We can’t take the criticisms personally,” he said.

The foundation’s CEO, Stephen Maislin, said it will pay the costs of running the Harvey relief fund on its own, including the credit card fees banks charge for donations.

The charities are still weighing the best ways to use the money and setting up systems to monitor where the money goes. Veterans of other major disasters, such as Hurricane Katrina and Superstorm Sandy, say coordination between groups is critical to make the most out of every dollar.

Reese May, national director of recovery for the home rebuilding group SBP, said local leaders need to bridge the gaps between the dozens of groups by setting clear goals.

“When there is aggressive leadership, when there are aggressive goals that are publicly set, it plants the flag,” May said. “It gives neighbors the opportunity to connect with one another, saying, ‘Absolutely, we’re going to make it back from this.'”

Among the most critical needs is figuring out housing for thousands of people who are still living in emergency shelters, many of whom are not eligible for federal assistance. Others lost everything in their homes, and some people are living in gutted homes flooded by sewage because they have nowhere else to go.

The people involved in fundraising say they must move quickly and coordinate with each other.

“I’m praying we can stretch it,” said Anna Babin, head of the United Way of Greater Houston, which is already issuing grants to people needing help with rent and lost vehicles and cleaning out flooded homes. “But this is so significant.”

As the Texans played their first game of the season Sunday, around 1,900 evacuees were inside the NRG Center, the convention center across the street from the stadium. Thousands of NFL fans were tailgating in nearby parking lots, and smoke from sausages and chicken on the grill rose in the air.

Estella Martin and several other people said they wanted answers from the groups raising money on their behalf.

“They got enough to put every one of the people that are still here in a home or an apartment and help them out until they get up on their feet,” Martin said. “Instead, they’ve got us here.”
…

The Northland area of Columbus, Ohio was booming in the 1960s and 70s. About 65 square kilometers, the area was a shopping and dining destination. Its centerpiece was the Northland Mall on Morse Road.

“You couldn’t get a parking space at the mall at Christmas time,” Dave Cooper, president of the Northland Area Business Association, told Columbusalive.com.

In the early 2000s, the area fell on hard times. Retailers began to desert the mall – Columbus’s oldest – for newer shopping centers and in 2002, Northland Mall closed, ushering the whole Morse Road corridor into a period of increasing crime and vacant storefronts.

The city of Columbus went into action, creating special commissions and offering tax incentives. But when help arrived, it came from an unexpected quarter.

As the old mall was closing, immigrants and refugees were opening up small shops and restaurants along Morse Road. A group of Somali refugees opened Global Mall just five blocks away, offering new space opportunities for startup entrepreneurs. Part shopping center, part community gathering place, Global Mall today hosts all sorts of businesses.

And Global was just the beginning of what has become a corridor of immigrant and refugee businesses along Morse Road.

“Some refugees or some immigrants have great business skills. So they got into the business without help of the government … and they flourished,” says Somali business owner Ahmed O. Haji.  

Saraga Grocery

“I bought ramen noodles and extra hot peppers. I like the fact that there is a big variety from all different places around the world,” says Ron Kosa, a customer at the Saraga International Grocery, which is located in a former Toys R Us building on Morse Road.

Korean immigrant John Sung opened the 5,000 square-meter grocery four years ago.

“We have products from five continents, Africa, Asia, South America, Europe all over the world basically,” Sung says, adding that his 80 employees are similarly from all over the world.

In addition to selling groceries, Saraga provides space for individual merchants, hosting a halal butcher, a Mexican bakery and a Nepali food stand among others.

Jubba Value Center Mall

About two kilometers away from Saraga grocery is Jubba Value Center Mall where Somali refugees and immigrants have small shops and help each other bring in new customers. Columbus has the second largest Somali community in the U.S. after Minneapolis, MN.

“Morse Road is a very strategic location,” says Haji who started the Jubba Travel agency nine years ago. “It’s one of the highest revenue generated ZIP codes in Columbus.  It’s a great location. Morse has very diverse ethnic people that live in this area.”

The influx of refugees and immigrants kept the population of the Northland area from declining in the first years of the new millennium.

From 2007 to 2012, immigrant entrepreneurship rose citywide by 41.5%.  Native born entrepreneurship declined by 1.2 percent during the same time period.

“Based on a recent study, we could account for over 900 businesses that were opened specifically by the refugee community,” said Guadalupe Velasquez, Assistant Director of the Department of Neighborhoods for the city of Columbus. “And they then in turn employ over 23,000 individuals.”

The total contribution of refugees to the city’s economy is $1.6 billion, Velasquez added.

Travel Agency

 “I did not have an incentive move or any advice from the city,” says Haji about opening his travel agency.

“What drove me to start the business was the need for my immigrant people predominantly Somali people who are going back home. And the means of transportation is an airline. So I thought that was a lucrative business to get into.”

Since the president’s executive order limiting travel from six countries, including Somalia, took effect in June, Haji says his business has declined dramatically. But he will keep at it.

“The city is very welcoming. Columbus, I’ve been here for almost 21 years now, and I am not going to go anywhere else.”
…

The two recent hurricanes that hit the United States raised inflation and puzzled analysts tracking job losses in Texas and Florida. Experts say the impact on the huge economy is “limited.”

Thursday’s report from the Labor Department says overall unemployment claims declined 14,000 over the past week, after jumping by tens of thousands the previous week in the wake of Hurricane Harvey.

Nationwide, 284,000 Americans signed up for unemployment assistance last week, a figure experts say is low enough to show a generally healthy job market.

Experts caution that the jobs data is likely to be “volatile” for a while, as the storms that put many people out of work also closed the government offices where jobless people file claims. PNC Bank chief economist Gus Faucher says claims from Hurricane Irma are likely to “jump” upward in Florida in coming weeks; but, Faucher says despite the storms, the nationwide labor market is “strong.”  Florida is about one-twentieth of the U.S. economy, and the Florida Keys, ravaged by Irma, are just a tiny fraction of the state’s economy.

Gasoline prices have risen and may continue to increase after Hurricane Harvey’s floods and winds damaged and closed oil industry facilities, including nearly one-quarter of U.S. refineries. The lower stocks of gasoline forced buyers to pay higher prices. Refineries are gradually making repairs and resuming operations.

Those higher prices for fuel and a boost in rent costs showed up in the newest assessment of inflation, which showed the Consumer Price Index gaining 1.9 percent over the past year. Inflation and other economic data will be closely examined by top officials of the U.S. central bank as they gather next week to decide whether to reduce efforts to stimulate the economy.

IHS Markit analyst James Bohnaker says Federal Reserve leaders should be “encouraged” by “healthy” gains in prices. He says the Fed may start cutting back stimulus efforts by reducing a massive bond-buying program next week. Bohnaker and other experts say the Fed will probably not ease the other stimulus effort – very low interest rates – until December. 
…