Economy

World’s Biggest Container Shipping Line Operating Close to Normal After Cyberattack

A global Danish transport and logistics company says it has restored most of its information technology systems after experiencing a major cyberattack last week that affected companies and government agencies in more than 60 countries.

A.P. Moller-Maersk says it resumed container deliveries at its major ports Monday, but said it may take another week to restore all computer functions.

The cyberattack that hit the world’s biggest container shipping line also affected U.S. pharmaceutical company Merck, FedEx subsidiary TNT, London based international law firm DLA Piper, and Kyiv’s Oschadbank,

 

Ukrainian authorities have blamed Russia for masterminding the attack.  Russia denies the charge.

Ukraine has repeatedly come under fire from high-powered cyberattacks tied to Moscow, but several independent experts say it is too early, based on what is publicly known, to come to a firm conclusion about who is responsible for this attack.

The hackers encrypted data on infected machines and demanded a ransom to give it back to its owner.  Some researchers question the motivation behind the attack, saying it may not have been designed to collect a ransom, but instead to simply destroy data.

Russian anti-virus firm Kaspersky Lab says the code used in the hacking software would not have allowed its authors to decrypt the stolen data even after a ransom had been paid.

The computer virus used in the attack includes code known as “Eternal Blue”, a tool developed by the U.S. National Security Agency that exploited Microsoft’s Windows operating system, and which was published on the internet in April by a group called Shadowbrokers.  Microsoft released a patch in March to protect systems from that vulnerability.

The attack bore resemblance to the previous “WannaCry” hack, that sent a wave of crippling ransomware to hospitals across Britain in May, causing the hospitals to divert ambulances and cancel surgeries.  The program demanded a ransom to unlock access to files stored on infected machines.

Researchers eventually found a way to thwart the hack, but only after about 300 people had paid the ransom.

Last week, Tim Rawlins, the director of the Britain-based cybersecurity consulting firm NCC Group, told VOA the attacks continue to happen because people have not been keeping up with effectively patching their computers.

“This is a repeat WannaCry type of outbreak and it really comes down to the fact that people are not focusing on what they should be focusing on, the very simple premise of patching your systems,” Rawlins said.

 

Qatar’s Stock Market Falls as Neighbors’ Demands Unmet

Qatar’s stock market fell sharply Sunday as a deadline for Doha to accept a series of political demands by four Arab states was expected to expire later in the day with no sign of a resolution.

The Qatari stock index sank as much as 3.1 percent in thin trading, bringing its losses to 11.9 percent since June 5, when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and trade ties, accusing Doha of backing militants.

Stocks tumbled across the board Sunday, with 41 lower and only one higher. Qatar National Bank, the largest listed lender in the Gulf, lost 3.1 percent.

Thailand, China to Sign $5 Billion Rail Infrastructure Agreement

In a major boost to Thailand’s transportation infrastructure, the military government is set to sign a more than $5 billion agreement with China for a high-speed rail network.

The first stage of the rail, the 252 kilometers from Bangkok to Nakhon Ratchasima, is a key step in a line that, once complete, will stretch more than 1,260 kilometers to Kunming, in China’s Yunnan province. The next stages will reach the Thai border with Laos. 

Analysts see the rail line as an extension of China’s One Belt, One Road initiative, expanding regional trade and investment. The project also highlights China’s growing regional influence.

The agreement, expected to be signed in July, follows almost two years of delays in negotiations, with final details of the contract still to be made public.

The deal has also raised widespread criticism of the government’s use of powerful clauses in an interim charter.

Economic boost for Thailand

Economists say investment in Thailand’s rail infrastructure needs to be a priority.

Pavida Pananond, an associate professor of business studies at Thammasat University, said general improvements to Thailand’s transportation network are welcome.

Several other countries, including Japan and South Korea, have put forward transportation plans and proposals for rail systems in recent years.

“It’s good for Thailand and it’s good for Thai business. I would say a clear ‘yes’ because Thailand is in dire need of better infrastructure, especially with regard to transport,” Pavida said.

Thailand, she said, faces high transportation logistics costs due to a reliance on roads.

Talks surrounding the Sino-Thai rail agreement have been bogged down for over two years due to disputes over land access to China, debate over interest charges on loans from Chinese banks, and the eligibility of Chinese engineers and architects to work on the project.

Professor of economics Somphob Manarangsan said the rail project offers the region significant economic potential and a boost in Chinese foreign direct investment.

He said Thailand is also looking to China to invest in the government-backed Eastern Economic Corridor (EEC) that is targeting regional foreign investment.

“Thailand wants them [China] to move their regional supply chain outside of China to the mainland of ASEAN [Association of South East Asian Nations] area, which has Thailand at the hub, connecting to CLMV [Cambodia, Laos, Myanmar, Vietnam],” he told VOA.

The rail network includes a 410-kilometer section through Laos, in which China is contributing 70 percent of the total $5.8 billion cost. Laos sees the rail line as vital to enable it to export goods to the Thai seaport of Laem Chabang, near Bangkok.

Special powers raise concern

But the project has come under increasing criticism in Thailand after the military government, in power since May 2014, insisted on using powers under Section 44 of the interim charter that give the government absolute authority in policy application.

The government claims the use of the special power was to ensure Chinese investment, expertise, technology and equipment.

Former army chief and Thai Prime Minister Prayut Chan-o-cha told local media the use of the charter powers was to clear legal hurdles in the Thai-Sino rail project, “not a special favor to China but to Thailand’s benefit.”

But the use of the laws was challenged by organizations of Thai professional engineers and architects who said Chinese engineers were not registered to work in Thailand.

Thitinan Pongsudhirak, a political scientist at Chulalongkorn University, in a commentary, said Thailand should press for open bidding on the project to ensure the country ended up with the “best bid with the best value.”

“Instead, opting for the Chinese plan is poised to violate a slew of Thai laws and undermine the government’s own good governance agenda,” Thitinan said.

Besides exemptions to Chinese engineers and architects working on the project, the charter articles also exempt state procurement laws and environmental regulations covering forest reserves, which will be set aside for the line’s construction.

Thammasat University’s Pavida said other concerns include levels of transparency on the agreement.

“People don’t know the details. People haven’t seen much information on the potential benefit, and partly, this is because the feasibility study has been done by the Chinese,” she said.

“So, if you look at that and the Chinese try to sell their technology and then we let them do the feasibility study, so they would say, ‘yes, it is feasible.’ So that’s one of the reasons why people do not have trust in the rush into this,” she said.

Analysts said the government’s push to sign an agreement comes as Thai’s Prayut is due to visit China in September to attend meetings of the BRICS — Brazil, Russia, India, China and South Africa — forum in Xiamen.

India to Rollout Momentous Tax Reform, But Many Fear Rocky Transition

India is set to rollout a momentous tax reform at midnight Friday that will transform the country of 1.3 billion people into a single market.

The Goods and Services Tax (GST) will replace an entanglement of more than a dozen confusing levies with a single tax and bring down barriers between states.

But the transition is bringing upheaval. The new tax has sparked strikes, protests and concerns it could disrupt many businesses unprepared for a leap into the digital economy.

In markets across the country, confusion and chaos prevail among millions of small shopkeepers and traders, who have for decades maintained records in dusty ledgers and issued paper receipts to customers. Some are hurriedly investing in computers as new rules require all but the smallest businesses to submit online taxes every month.

Calculator to computer

Suresh Kumar, who runs a family owned store in a bustling neighborhood market in New Delhi, has never operated a computer and does not have an Internet connection in his shop. His customers mostly pay in cash and a calculator on his counter is the only modern gadget he has used since he opened this shop 47 years ago.

“How will I pay the salary of an accountant? I can barely cover the costs of these three men who help me,” Kumar said, pointing out that stores like his run on wafer-thin profit margins to stay in business.

The archaic accounting systems that were the method of operation of thousands of shops and traders also kept them out of the formal economy.

But as GST draws them into the tax net, government revenues are expected to get a huge boost in a country where tax compliance has been very low.

​Growing pains

The government agrees there will be growing pains due to the scale of the task ahead but points to long-term advantages. Over time, the new tax is expected to add about 2 percent to gross domestic output and vastly improve business efficiencies in the world’s fastest growing economy.

Economists say the GST will be a benefit for manufacturers, because it will free up domestic trade by cutting through a gigantic bureaucracy that involved a myriad of tax inspectors and checkpoints at state borders.

At the moment, trucks transporting goods lose an estimated 60 percent of transit time as they wait at state borders. Paying bribes was a fact of life accepted by businesses.

The tax will also make India’s $2 trillion economy more attractive to investors as it makes the economy more transparent.

More time needed

But in recent weeks many businesses have called for a postponement of the July 1 rollout, saying they did not get enough time to prepare.

K.E. Raghunathan, president of the All India Manufacturers Organization, said businesses need more time to adjust.

“The way it is being implemented, it is bound to create lots of chaotic conditions,” he said.

Underlining concerns of millions of small and medium manufacturers, he said, “they neither have the wherewithal to understand the sudden implementation and if they approach chartered accountants or consultants, it costs lots of money.”

A big concern is that the GST being rolled out by India is far more complex than that introduced by other countries where a single rate prevails. There will be four layers of taxation with rates of 5, 12, 18 and 28 percent.

Manufacturers and traders complain the different levels are creating confusion.

More than 50,000 textile traders went on strike this week. Thousands of other traders shut businesses Friday.

Many big and small retailers worried about the switchover have been offering massive discount sales across the country to get rid of their inventories.

Government pushes ahead

But the government has brushed aside concerns about businesses not being prepared for the switchover. 

“If he is still not ready, then I am afraid he does not want to be ready,” said Finance Minister Arun Jaitley recently as he rejected calls for a delay of the rollout.

Businesses say the tax rollout is the second disruption they have faced, coming months after Prime Minister Narendra Modi’s radical move to scrap 86 percent of the country’s currency, which slowed the economy.

As customers pour into his shop to buy stationery and other items, New Delhi shopkeeper Vimal Jain wonders whether he will handle customers or enter transactions in a computer starting Saturday. 

“Now this is another headache,” he said. “We had barely begun to recover from demonetization and now this sword hangs over our head.”

The tax will be ushered in at a grand midnight ceremony in parliament, but even that has become contentious. Calling it a “publicity stunt,” the main opposition Congress Party and several other parties have said they will boycott the special session.

US Growth in First Quarter Better Than Expected, Global Outlook Improves

U.S. economic growth in the first quarter of 2017 was better than expected but not by much. The Commerce Department says U.S. GDP, the broadest measure of goods and services produced in the country, grew 1.4 percent from January to March, 0.2 percent faster than the previous estimate. But many analysts believe U.S. growth will improve in the second quarter. And growth prospects for the global economy are the best they’ve been in six years. Mil Arcega has more.

Kenya’s Nomads Work Together to Reduce Conflicts and Poverty

It looked like a hostage swap, only the currency was livestock and the mission was to end decades of deadly clashes.

More than 50 sheep, goats and cows stood in the scorching heat of a desolate no-man’s land in arid northern Kenya, as Maasai and Samburu herders negotiated their handover.

Lipan Kitonga cast a critical eye over his emaciated herd, which 10 gun-toting Samburu had stolen from his home in Isiolo County, 300 kilometres (186 miles) north of Kenya’s capital.

“I was not around at the time,” said Kitonga, a community-based police officer, known as a police reservist, dressed in camouflage fatigues with a G3 rifle in hand. “Otherwise it would have been a different matter,” he said, his voice still tight with anger nine days after the animal theft.

Drought and violence

Nomadic herders in remote northern Kenya, which is awash with illegal arms, frequently raid cattle from each other and fight over scarce pasture and water, especially during droughts.

A wave of violence has hit Isiolo’s neighboring Laikipia region in recent months as armed herders searching for grazing have driven tens of thousands of cattle onto private farms and ranches from denuded communal land.

The livestock exchange was organized by the Northern Rangelands Trust (NRT), a charity set up in 2004 with support from donors and conservationists to reduce conflict and poverty among nomads by helping them better manage their land.

Almost 300,000 people are members of NRT’s 33 conservancies, which are community organizations focused on conservation, owning nearly 6 million acres (2.4 million hectares) of land across Kenya’s north and coast.

Nomads no more

Drought has hit millions this year in northern Kenya, where most people live off their livestock. As Kenya’s population has doubled in 25 years, nomads can no longer freely follow the rains, turning some overgrazed common lands to dust.

“You have got more people, with more livestock, on less and less productive rangeland and it’s a really explosive situation,” said Mike Harrison, chief executive of NRT, funded by the U.S. Agency for International Development (USAID). “The only answer to this is that everybody has to invest in improving their land.”

NRT promotes rotational grazing with a sustainable number of livestock, which allows land to rest, and the reseeding of degraded areas. Zones are set aside for wildlife, people and livestock, with limited access during drought for nomadic animals from other communities.

It also helps develop new businesses — tourism, bead-making and livestock markets — so nomads are less dependent on herding.

Tourism is the real money-spinner.

The most successful conservancies earn about $500,000 a year from visitors paying daily entry fees of $50-$80, Harrison said.

These earnings go into a community fund with 40 percent spent on operations, such as rangers’ salaries, and 60 percent on community projects, such as education and health, NRT says.

Shootouts

One of NRT’s main achievements has been to reduce conflict, cattle rustling and poaching by funding more than 500 rangers, trained by Kenya Wildlife Service, to patrol members’ land.

Many are police reservists, like Kitonga, issued rifles by the government to back up the overstretched police.

In Nasuulu, just north of Isiolo town, the Samburu, Turkana, Somali and Borana — who have traditionally fought each other — have come together to form one conservancy, an NRT member.

“They never used to talk to each other before, but they are now working together,” said Omar Godana, Nasuulu’s chairman.

 

Wildlife protected, too

Elephant poaching has stopped on 35,000 hectare (86,487 acre) Nasuulu since 12 NRT-funded scouts were deployed, he said.

NRT’s mobile security teams work with the police and wildlife service and receive aircraft and tracker-dog backup from a nearby wildlife conservancy, Lewa.

With increased security and strict controls on grazing, shootouts between armed herders and rangers are inevitable.

“It’s a killer squad,” said John Leparsanti, a Samburu herder in Laikipia who sees the crackdown on illegal grazing on NRT conservancies as a threat to his traditional way of life. “When there is a biting drought we cannot graze.”

Herding is key to the identity and culture of Kenya’s nomads, whose young men are initiated as warriors in colorful ceremonies where each kills a cow and drinks its blood. Their role as ‘morans’ is to guard the community and its animals.

Livestock provide nomads with a ready income because they can be sold quickly for cash. Pastoralists often do not have bank accounts and have high illiteracy rates because they roam over vast terrains with their cattle from a young age.

“We are not ready to do business like other tribes because we believe in cows,” said Samburu politician Mathew Lempurkel. “What are we going to replace them with?”

Harrison says less than 1 percent of NRT members’ land is set aside exclusively for wildlife.

Livestock is life

In remote, insecure lands, with poor roads and patchy mobile phone networks, there are no obvious alternative ways of life.

“If we went to say: ‘Look, you’ve all got to cut your livestock numbers in half, we would be laughed out the door,” Harrison said. “It’s a long slow process of rethinking what the incentives might be, trying different options.”

The authority of elders who used to control shared grazing land has been eroded by centralized government rule and modern education, experts say.

As climate change has brought increasingly frequent and prolonged drought and less grass, herders are keeping more goats as they can browse on shrubs and young shoots, unlike cattle.

The goats rip out the grass roots, further degrading the rangeland and reinforcing the vicious downwards cycle.

Some northern counties have formalized traditional land management customs in local bylaws, with the aim of giving power back to elders, in contrast to NRT’s approach of supporting decision-making by conservancy boards of directors.

“When you have the elders managing, there is enhanced ownership and the feeling of exclusion is not there,” said George Wamwere-Njoroge, an expert with the International Livestock Research Institute, which supports such initiatives.

ILRI is also encouraging herders to keep fewer, healthier animals, which fetch a better price at local markets, instead of trucking their cattle for 24 hours to the capital, Nairobi, where cartels control sales, he said.

Status cows

One solution, rarely discussed by politicians, would be to reduce the number of livestock owned by wealthy, urban elites, who keep vast herds on northern lands as a status symbol.

Unlike in the past, when droughts would naturally have reduced livestock numbers, the elites ship in hay and water to keep their animals alive.

“A lot of destitute pastoralists have dropped out and moved to the small trading centers and depend on relief and petty trade,” said Wamwere-Njoroge. “But the elite pastoralist animals keep on going.”

US Farmers Plow Through Uncertain Trade Environment

Many Americans in rural parts of the United States voted to elect Donald Trump as president in 2016, despite his stance against trade agreements. In the wake of the President Trump’s announcement to withdraw from the Trans Pacific Partnership Agreement, or TPP, and now curbing trade with Cuba, VOA’s Kane Farabaugh reports on how farmers in the Midwest state of Illinois are reacting, and adjusting, to the uncertain road ahead.

Uber, Others Change Vietnam’s Motorbike Culture

Nguyen Kim Lan used to make a decent living shuttling customers around town on his Honda motorbike. But his clientele has dwindled as young and tech-savvy Vietnamese increasingly use ride-hailing apps like Uber and Grab to summon cheaper, safer motorbike taxis.

 

The expansion of the ride-hailing services across Southeast Asia is shaking up traditional motorcycle taxi services that are a key source of informal work for people like Lan. In some cases, the Xe Om, or motorbike taxi, drivers are venting their anger in attacks on the new competitors.

 

Lan is just frustrated. He says his income has fallen to 20 percent to 30 percent of what it used to be. 

‘Picked up at the door’

 

“Nowadays, my frequent customers have all booked Grab and Uber, so they don’t come here anymore,” said Lan, 62, as he waited for customers at an intersection in downtown Hanoi. 

 

“Before, office workers would come here after work. Now they just sit in their offices and get picked up at the door,” he said. 

 

As elsewhere in the region, motorbikes are Vietnam’s main form of transportation, especially in the capital Hanoi and the southern commercial hub of Ho Chi Minh City. They can maneuver through crowded, narrow city streets more easily than cars and are less expensive to buy and run.

​First taxis, now motorbikes

Having invaded the conventional taxi market, ride hailing apps like Uber and Malaysia-based Grab are now elbowing aside the Xe Om with their UberMoto and GrabBike services.

 

Vietnam, a communist-ruled country of 93 million, has about 45 million motorbikes, the highest rate of motorcycle ownership per capita in Southeast Asia. About 3 million new motorbikes were sold last year. 

 

Practically everyone has mobile phones, and cheap Internet access has enabled most Vietnamese city dwellers to get online. 

 

Nguyen Tuan Anh, chairman of Grab Vietnam, said the number of GrabBike drivers has jumped from 100 when they first launched in late 2014 to more than 50,000, with hundreds joining every day.

 

The growth of passengers is “explosive,” he said. 

 

Many Vietnamese now prefer to use ride hailing apps, viewing their services as safer and cheaper, Tuan Anh said. “GrabBike brings transparency and that’s why customers love it. They know that they will not be cheated by the drivers.”

Hotspots of conflict

 

But Tuan Anh said he knows of more than 100 cases where GrabBike drivers were attacked in the past year, often by Xe Om drivers worried about losing business. 

 

Bus stations, hospitals and schools are hotspots for conflict. In one case, a GrabBike driver was stabbed in the lung. In another, police fired warning shots to disperse crowds of Xe Om and GrabBike drivers who were battling near a bus station in Ho Chi Minh City.

 

Similar problems have been reported in Thailand and Indonesia. 

 

Tuan Anh said GrabBike tells its drivers to be cautious and to seek help from police. 

 

Many Vietnamese seem keen to use such services despite the potential for conflict.

Cheaper, more convenient

 

Tran Thuc Anh, a 21-year-old video games designer, says she switched to using GrabBike to commute from bus stations to and from her office about six months ago.

 

It costs her half as much as using Xe Om did, she says. 

 

“I just need to be online to book a bike without going around to look for a traditional Xe Om, so it’s very convenient,” Thuc Anh said. 

 

Many GrabBike drivers originally worked as Xe Om, but not all are willing to sign up. Older motorbike taxi drivers say they don’t know how to use online apps or lack the cash to buy smart phones. Others are put off by the cheaper fares GrabBike charges. 

 

But Nguyen Quang Trung, a 30-year-old salesman who began moonlighting for GrabBike six months ago, said Xe Om drivers who try to overcharge their customers are finished.

 

“Uber and Grab are safe and their fares are reasonable and customers see this,” Trung said. “Only elder people or those who are in hurry use traditional Xe Om. Young people and people who are not short on time never use Xe Om.”

Cuba Expects Tourism Growth Despite Trump’s Crackdown on US Travel

Cuba earned more than $3 billion from tourism in 2016 and expects to better that this year despite President Donald Trump’s tightening of restrictions on U.S. travel to the Caribbean island, a government official said on Wednesday.

“In 2016, revenue reached more than $3 billion in all activity linked to tourism in the country,” Jose Alonso, the Tourism Ministry’s business director, told state-run media.

“We think that, given the growth the country is seeing at the moment, we will beat that figure this year,” Alonso said.

Tourism revenue totaled $2.6 billion in 2015.

The number of foreign visitors to Cuba was up 22 percent in the first half of 2017 compared with the same period last year, according to Alonso, who said that put it on track to reach its target for a record 4.2 million visits this year.

Tourism has been one of the few bright spots recently in Cuba’s economy, as it struggles with a decline in exports and subsidized oil shipments from its key ally Venezuela.

A surge in American visitors has helped boost the sector since the 2014 U.S.-Cuban detente under the Obama administration and its easing of U.S. travel restrictions, even as a longtime ban on tourism remained in effect.

But Trump earlier this month ordered a renewed tightening of travel restrictions, saying he was canceling former President Barack Obama’s “terrible and misguided deal” with Havana.

Many details of the policy change are still unknown. But independent travel to Cuba from the United States, by solo travelers and families, will likely be much more restricted.

Alonso said he was confident “an important number of Americans” would still be able to visit the island. But an announcement by Southwest Airlines Co (LUV.N) on Wednesday that it was reducing its number of flights to Cuba cast shadow over his upbeat comments.

“There is not a clear path to sustainability serving these markets, particularly with the continuing prohibition in U.S. law on tourism to Cuba for American citizens,” Southwest said in a statement.

Southwest joined other U.S. airlines that have cut flights to Cuba over past months or pulled out of the market altogether.

Politics of Death: Lawyers Join Battle Over Land in Mineral-rich Indian State

For Shalini Gera, a rights lawyer in India’s Chhattisgarh state, it was the searing testimony of tribal activist Soni Sori that drew her attention to atrocities in the mineral-rich state.

Sori, who was arrested in 2011 on charges of aiding Maoist rebels in the state, accused the police of torturing and sexually assaulting her while in prison. Her crime?

Defending the right of indigenous people to live in an area rich in minerals in what is one of India’s poorest states.

Police officials, who have since been moved to other locations, deny any mistreatment.

Stirred by Sori’s call for justice, Gera and a couple of other lawyers left Delhi to set up office in the state’s restive Bastar region in 2013. It wasn’t long before they were targets.

The lawyers said they were followed, had objects thrown into their home, and were accused of helping Maoist rebels. They say they were harassed for defending villagers and indigenous people.

They were finally evicted by a fearful landlord last year, and relocated to Bilaspur about 400 km (250 miles) away, where they continued to pursue their cases.

Mineral-rich, rights-poor

The lawyers have angered plenty of people in high places.

A top police official recently said they should be crushed on the highway for going against the state to protect villagers.

“Parts of Chhattisgarh are like a war zone,” said Sudha Bharadwaj, a lawyer in Bilaspur who backed Gera and set up a legal aid group, Janhit, for farmers and indigenous people.

“There is violence against people who insist on their rights and we are perceived as anti-development for helping them,” said Bharadwaj, 55, who took up law at the age of 40 to help local people.

One of India’s least developed states, Chhattisgarh sits atop some of India’s biggest reserves of coal, iron ore, bauxite, dolomite, limestone, tin and gold, and accounts for nearly a fifth of the total value of minerals produced in India.

At least 25 conflicts are raging in the state — over coal and iron ore, power projects and steel plants — and they affect 70,000 people, according to research firm Land Conflict Watch.

The race for resources to spur India’s economic growth has pitted some of its most vulnerable people against the state, stalling industrial projects worth billions of dollars.

There are at least 332 land conflicts nationwide, affecting more than 3.5 million people, according to Land Conflict Watch.

Nowhere are these conflicts more violent and bloody than in Chhattisgarh, part of the “Red Corridor” stretching across eastern and central India that has witnessed a Maoist rebellion for more than three decades.

The rebels, who say they are fighting for the land rights and empowerment of indigenous people, accuse the government of plundering mineral resources while ignoring the villagers.

Adivasis, or “original dwellers,” and lower-caste Dalits make up more than 40 percent of the state’s 28 million population and traditionally lived in its forests and hills.

After the opening of the economy in the early 1990s, tracts of forest land were handed to companies including Adani Group, Jindal Power, Essar and Tata Steel for mines and power plants.

Backed by the state, an anti-insurgency militia called Salwa Judum — meaning “Peace March” or “Purification March” — began cracking down on the Maoist rebels from 2005 to free up land.

A pitched battle ensued, in which hundreds were killed and tens of thousands displaced amid accusations of mass rape, illegal detentions, torture and extra-judicial killings.

Activists are caught “between two sets of guns” in the conflict between Maoist combatants and government security forces, Human Rights Watch said in a 2012 report.

“The original inhabitants are seen as road blocks that they have to get out of the way to do more mining, build more plants, more industry,” said Bharadwaj.

Murder, treason

The fight for land and the environment is “a new battleground for human rights,” according to British-based watchdog Global Witness, with India chalking up at least six deaths in 2015 related to land conflicts.

In Chhattisgarh, villagers spoke of giving up land at gunpoint while activists faced charges from murder to treason.

Lingaram Kodopi, a tribal activist, fled to Delhi after being shot in the leg in 2011.

Binayak Sen, a physician, was convicted of treason and sedition in 2010 and sentenced to life imprisonment.

Ramesh Agrawal, who received the prestigious Goldman Environmental Prize in 2014 for leading a protest that shut down a proposed coal mine, was wounded by masked gunmen in 2012.

Sori was attacked again last year with chemicals.

Delhi University professor Nandini Sundar was among those charged last year in the killing of an indigenous man in Bastar shortly after she published a book on the conflict.

“People opposing the state are not treated as citizens. The state sees it fit to tackle them only through the military,” said Gera, a co-founder of Jagdalpur Legal Aid Group. “Would there be less violence if there were no resources? Perhaps.”

‘Iron fist’

Laws that protect the rights of farmers and indigenous people — including a 1996 law on tribal areas and the 2006 Forest Rights Act giving traditional forest dwellers access to forest resources — are poorly implemented, activists say.

Meanwhile, state officials say resource-based industries are needed to spur growth and generate jobs for the state.

“We have settled forest rights where requested. If there is any complaint of rights violation, we look into it,” said Subodh Kumar Singh, a senior official in the mines department. “There may be a few displacements, but the people are resettled. The industries are bringing good development.”

The Supreme Court in 2011 called Salwa Judum “illegal” and ordered its disbandment. The top court said it was dismayed the only option for the state was “to rule with an iron fist.”

But a battle is still raging.

Among the cases that Bharadwaj is handling is that of Janki Sidar, who is fighting the unauthorized takeover of her land.

The case is 14 years old. Bharadwaj is her 10th lawyer.

“It is necessary for us — doctors, lawyers, journalists — to be involved,” said Bharadwaj. “We have to help them confront the power of the state and industry. We have to become their amplifiers to carry their voices to the outside world.”

Trial of Chinese Billionaire in UN Bribery Case Opens

Jury selection began Monday in the trial of a Chinese billionaire accused of bribing United Nations diplomats to gain their approval of a U.N. conference center he wanted to build.

Ng Lap Seng has pleaded not guilty. He has posted $50 million bail, but is restricted to a luxury New York City apartment that he owns, where he is under guard around the clock. He is allowed to leave his apartment only to visit his doctors or his lawyers.

Ng, who is 69, is accused of paying hundreds of thousands of dollars in bribes for the center he planned to build in Macau.

Prosecutors say some of the money reached former General Assembly president John Ashe and a former diplomat from the Dominican Republic, Francis Lorenzo.

Ashe died last year in a freak accident while lifting weights at his home.

Lorenzo pleaded guilty and agreed to cooperate with U.S. prosecutors in the case against Ng.

Ng’s lawyers contend the charges are politically motivated, aimed at trying to curb China’s influence over developing countries that might have used the Macau conference center.

If prosecutors and defense lawyers can agree on selection of a jury without delay, the judge in the case estimated the trial would last a month or perhaps longer.

Thirteen EU Nations Back Plan for Talks With Russia Over Pipeline

Thirteen EU nations voiced support on Monday for a proposal to empower the bloc’s executive to negotiate with Russia over objections to a new Russian gas pipeline to Germany, despite opposition from Berlin.

At an informal debate among EU energy ministers, Germany’s partners in the 28-nation bloc spoke out against Russia’s Nord Stream 2 pipeline plan to pump more gas directly from Russia’s Baltic coast to Germany.

EU nations are expected to vote in the autumn on the European Commission’s request for a mandate to negotiate with Russia on behalf of the bloc as a whole.

Germany, the main beneficiary of the pipeline, sees it as a purely commercial project, with Chancellor Angela Merkel last week saying she saw no role for the Commission.

The plan taps into divisions among the bloc over doing business with Russia, which covers a third of the EU’s gas needs, despite sanctions against Moscow over its military intervention in Ukraine.

In private, EU officials say they hope direct talks with Russia would delay the project past 2019, depriving Russian state gas exporter Gazprom of leverage in talks over transit fees for Ukraine, the current route for most gas supplies to Europe.

Germany, Austria and France – which have firms partnering with Gazprom on the project – declined to take the floor on Monday, EU diplomats said.

“We had 13 delegations intervening, with all of them being supportive of the Commission’s approach,” Commission Vice President Maros Sefcovic told Reuters by telephone after presenting the EU executive’s case to member states. “I am definitely optimistic about getting the mandate, but I know this is just the beginning of the debate.”

The Commission found support from Italy as well as Nordic, Eastern European and Baltic states, EU sources told Reuters.

“Germany has commercial interests, but it needs to explain itself,” one senior EU official said.

With the pipeline expected to reroute Russian gas supplies around Ukraine to the north, Italy voiced concerns it would increase gas prices for customers further down the line.

Eastern European and Baltic states fear it will increase their dependence on Gazprom and undercut Ukraine.

Nordic nations, meanwhile, have security concerns over the pipeline being laid near their shores under the Baltic Sea, where Russia has bolstered its military presence.

However, many EU nations have yet to take a stand.

“It is quite toxic. Many member states are quite wary of advertising their position,” one diplomat told Reuters.

There are also differences among EU member states over what aims to pursue in potential talks with Russia.

Speaking in Paris on Monday, Ukraine’s foreign minister said the draft EU proposal did not go far enough to secure guarantees from Russia, warning Nord Stream 2 would have “dangerous consequences” for the bloc.

Adding to tensions is the threat of new U.S. sanctions on Russia that would penalize Western firms involved in Nord Stream 2: Uniper, Wintershall, Shell, OMV and Engie.

Several EU diplomats said the measures proposed by the U.S. Senate have already backfired against their stated aim of bolstering European energy security.

“It’s a divisive measure,” one senior official said. “It’s easy for the U.S. to go after Russian gas of course, they don’t use it. … We are trying to make the best of a bad thing by balancing the interest of different member states.”

Cuban Farmland Lies Fallow, Production Languishes, Govt. Report Shows

More than half of Cuba’s arable land remains fallow nearly a decade after a government pledge to cultivate it, and food production is sluggish, according to a government report.

Cuba has yet to publish an overall figure for last year’s agricultural output. But the report released over the weekend by the National Statistics Office indicated only minor improvement in 2016 over the previous year.

The state owns 80 percent of the land and leases most of that to farmers and cooperatives. The remainder is owned by private family farmers and their cooperatives.

Despite the leasing of small parcels of land to some 200,000 would-be-farmers over the last decade, the report said just 2.7 million hectares (6.7 million acres) out of the 6.2 million hectares (15.3 million acres) of arable land available were under cultivation.

The Cuban government often blames bad weather, a lack of labor and capital for poor land use and production, while critics charge it is due to a lack of private property and foreign investment, rickety infrastructure and the Soviet-style bureaucracy.

President Raul Castro made increased food production and reducing the Communist-run Caribbean island’s dependence on imports his top priority after taking office in 2008 from his then ailing and now deceased brother, Fidel.

Castro began leasing land, decentralizing decision-making and introducing market mechanisms into the sector. But most of the effort has faltered and the state has backtracked on market reforms, once more assigning resources, setting prices and controlling most distribution.

Cash-strapped Cuba imports more than 60 percent of the food it consumes at a cost of around $2 billion annually, mainly for bulk cereals and grains such as rice, corn, soy and beans, as well as other items such as powdered milk and chicken.

Last year, $232 million of the imports came from the United States under an exception to the trade embargo that allows agricultural sales for cash.

The country does not produce wheat or soybeans, though experiments are underway to produce the latter. Over the last decade the government has poured millions of dollars into corn, rice, beans, meat and milk production in hopes of reducing imports, but with little success.

Unprocessed rice production was 514,000 tons in 2016, up more than 20 percent from the previous year. But that figure, representing just a third of national consumption, barely surpassed the 436,000 tons reported in 2008 and was less than the 642,000 produced five years ago.

Beans weighed in at 137,000 tons, up more than 15 percent from the previous year and compared with 117,000 in 2012, but little changed from the 2008 figure of 127,000 tons.

Corn, at 404,000 tons last year, was up some 10 percent over 2015 and the 360,000 output of 5 and 10 years ago, but again just a third of national consumption.

Pork and beef production have increased, while milk, chicken and egg production have stagnated.

Export crops, from coffee and citrus to tobacco and sugar cane, have not increased significantly, and in some cases declined.

Tonnage for root and garden vegetables has improved some 15 percent over the decade and reached 5.3 million tons last year, an increase of 200,000 tons. Bananas and plantains increased some 15 percent to a million tons in 2016 compared with an average of around 850,000 tons over the decade.

US Firm Stops Selling Cladding Used in Grenfell Tower

The American company which made cladding used London’s Grenfell Tower, where 79 people died after the building caught fire, has said it will stop global sales of the product.

U.S.-based Arconic cited “inconsistencies in building codes around the world” for stopping the sales. The company’s shares fell over 11 percent after it was linked to the blaze in London.

Hours after the announcement from Arconic, the Department for Communities and Local Government said that samples from 75 high-rises in England had failed fire safety tests.

The tests were initiated following the Grenfell Tower fire. Grenfell’s exterior insulation is thought to have been responsible for the rapid acceleration of the blaze, resulting in the deaths of at least 79 people, fire officials said.

Grenfell Tower and many of the buildings tested are all part of government-run, low-cost, public housing developments.

Saudi Business Cheers Leadership Shift, Frets Over Reform, Region

The promotion of Saudi Arabia’s top economic reformer to crown prince has cheered business leaders who believe it will open up new opportunities. But they worry about officials’ ability to implement reforms and about geopolitical tensions in the region.

The Saudi stock market jumped 7 percent in the two days after Mohammed bin Salman, previously deputy crown prince, was appointed last week to be first in line for the throne.

Part of the market’s rise was due to a decision by index compiler MSCI to consider upgrading Riyadh to emerging market status. But much of the euphoria was political; shares in companies closely linked to Prince Mohammed’s reforms were the top performers.

National Commercial Bank, the biggest lender, which is expected to play a big role handling financial transactions related to the reforms, surged 15 percent.

Miner Ma’aden soared 20 percent; Prince Mohammed has labelled mining a key sector in his drive to cut Saudi Arabia’s reliance on oil exports. Emaar the Economic City, builder of an industrial zone which the prince hopes

to develop as an export industry base, gained 16 percent.

Solid political move

Business leaders said the promotion of Prince Mohammed, 31, removed political uncertainty by confirming a smooth shift of power from an older generation of Saudi leaders to a young generation represented by the prince.

“The political transition was very smooth — we expect the reforms to continue,” Muhammad Alagil, chairman of Jarir Marketing, a top retailing chain, told Reuters.

He said Jarir, which has 47 stores, some 39 of which are in Saudi, would open at least six this year and a similar number next year, mostly inside Saudi Arabia.

Fresh opportunity

To some in business, Prince Mohammed represents fresh opportunity in the form of a $200 billion privatization program and state investment to help kick start new industries such as shipbuilding, auto parts making and tourism.

Some executives predicted the progress of these plans, which are still largely on the drawing board a year after Prince Mohammed announced them, would accelerate after his promotion.

“I didn’t see a risk of the reforms stalling or being reversed before, given the political backing behind them. But now the reforms can go ahead with more strength,” said Hesham Abo Jamee, chief executive at Alistithmar Capital.

He added that social initiatives in the reforms would help the economy by stimulating consumer spending.

For example, developing an entertainment sector, in a conservative society which has so far shunned many forms of public entertainment, would create jobs. The government plans an entertainment zone south of Riyadh with sports, cultural and recreational facilities.

Increasing the role of women in the workforce would boost family incomes and could accelerate creation of small businesses such as restaurants, Abo Jamee said.

Repatriation

Prince Mohammed is also architect of a tough austerity policy, including spending cuts and tax rises, that aims to abolish by 2020 a budget gap which totaled $79 billion in 2016.

The austerity has slowed private sector growth almost to zero.

But many in business see austerity as inevitable in an era of low oil prices and are pleased by the prince’s willingness to moderate it to avoid a worse slowdown. To mark his promotion, Riyadh retroactively restored civil servants’ allowances at a cost it estimated at around $1.5 billion.

Privately, many executives expect Prince Mohammed to persuade or pressure wealthy Saudis to repatriate some of the billions of dollars which they are believed to have transferred overseas for safe-keeping.

Other issues

It is not clear what tools he would use — moral suasion, legal action or financial incentives — but his promotion may have given him the political capital for such a sensitive step. Businesses remain worried by two other issues, however.

One is the competence of the bureaucracy to carry out the complex reforms. The government talks of partnerships between the public and private sectors to finance projects, for example, but has not released legal frameworks for such deals.

“Many of the reforms are in name only — nothing has happened. They’re struggling with the details,” said a foreign economist who advises the Saudi government.

Military intervention

The other big worry is rising tensions around Saudi Arabia — tensions in which Prince Mohammed has been closely involved in his role as defense minister for two years.

In addition to its military intervention in Yemen, Saudi Arabia is locked in a diplomatic confrontation with Iran, its allies are struggling in Syria’s civil war, and early this month it cut diplomatic and transport ties with Qatar.

For some in business, these tensions are at best a distraction for the government at a time when it needs to focus on the economy, and at worst risk a more serious regional crisis that could deter foreign investment and endanger the reforms.

 

Air Bag Maker Takata Files For Bankruptcy in Japan, US

Embattled Japanese auto parts manufacturer Takata said Monday it has filed for bankruptcy protection.

Takata also announced that rival Key Safety Systems is purchasing Takata for $1.5 billion. 

Takata has been overwhelmed with the costs of lawsuits and recalls related to defective airbags linked to the deaths of 16 people and scores of injuries worldwide.

The defective airbags led to a global recall of tens of millions of automobiles. The chemicals that power the airbags were found to deteriorate spontaneously with prolonged exposure to high humidity, causing the airbags to deploy far more forcefully than normal and sending metal and plastic shrapnel into drivers and passengers.

Takata has already agreed to pay a billion-dollar fine to settle with U.S. safety regulators.  Former U.S. Transportation Secretary Anthony Foxx has said that Takata engaged in a pattern of “delay, misdirection and refusal to acknowledge the truth.”

Jason Luo, president  and CEO of Key Safety Systems, said, “Although Takata has been impacted by the global airbag recall, the underlying strength of its skilled employee base, geographic reach, and exceptional steering wheels, seat belts and other safety products have not diminished.” 

The Tokyo Stock Exchange suspended trading of Takata shares Monday and said it would delist Takata stock Tuesday.

Debt, Protectionism Could Drag Down Improving Global Economy

The global economy has picked up and prospects for the next few months are the best in a long time.

 

But the recovery is maturing and faces risks from populist rejection of free trade and from high debt that could burden consumers and companies as interest rates rise.

 

Those were key takeaways from a review of the global economy released Sunday by the Bank for International Settlements, an international organization for central banks based in Basel, Switzerland.

 

The report said that “the global economy’s performance has improved considerably and that its near-term prospects appear the best in a long time.” Global growth should reach 3.5 percent this year, according to a summary of forecasts, not quite what it was before the Great Recession but in line with long-term averages. Meanwhile, financial markets for stocks and bonds have been unusually buoyant and steady.

 

On top of that, forecasts by governments and international organizations as well as by private analysts point to “further gradual improvement” in coming months.

 

Key risks include a possible weakening of consumer spending across different economies. So far, the recovery has been largely fueled by people being willing and able to spend more. But that trend could fall victim to higher levels of debt as interest rates rise in some countries and as the amount people need to spend to service their debts takes a bigger chunk of income.

 

Countries that were slammed by collapsing real estate markets during the Great Recession seem less vulnerable now, such as the United States, the U.K., and Spain. But debt burdens are more worrisome in a range of other countries mentioned in the report, including China, Australia and Norway.

 

Another risk comes from weak business investment, typically the second stage of recovery after consumers start spending more; yet that kind of spending has lagged its pre-recession levels for reasons that aren’t always clear to economists.

 

The BIS urged governments around the world to take advantage of the economic recovery as an opportunity to make growth more resistant to trouble by implementing pro-business and pro-growth measures.

 

In particular, the report warned against a backlash against globalization, saying that trade and interconnected financial markets had led to higher standards of living and lifted large parts of the world’s population out of poverty. It called for domestic policies to address inequality and lost jobs, saying that changing technology was often to blame, not free trade. “Attempts to roll back globalization would be the wrong response to these challenges,” it said.

 

 

 

Ford’s China Move Casts New Cloud on Mexican Automaking

A second U-turn this year by Ford Motor Co. in Mexico has raised the specter of Chinese competition for local carmaking, adding to pressure on the industry after repeated threats by U.S. President Donald Trump to saddle it with punitive tariffs.

Ford announced on Tuesday it would move some production of its Focus small car to China instead of Mexico, a step that follows the U.S. automaker’s January cancellation of a planned $1.8 billion plant in the central state of San Luis Potosi.

The scrapping of the Ford plant was a bitter blow, coming after U.S. President Donald Trump had blamed the country for hollowing out U.S manufacturing on the campaign trail, and threatened to impose hefty tariffs on cars made in Mexico.

Since then, rhetoric from the Trump administration has become more conciliatory, and Mexico and the United States have expressed confidence that the renegotiation of the NAFTA trade deal, expected to begin in August, could benefit both nations.

But the loss of the Focus business is an unwelcome reminder of competition Mexico faces from Asia at a time China’s auto exports and the quality of its cars are rising.

“For a long time, the quality of vehicles coming out of China was not to global standards. There was a gap in quality that [favored] Mexico – but that is closing,” said Philippe Houchois, an analyst covering the auto industry at investment bank Jefferies. “That is probably a threat to Mexico.”

In the past decade, global automakers have invested heavily in Chinese factories to make them capable of building cars at quality levels that make the grade in developed markets.

Ford’s decision to shift Focus production for the United States market to China from Mexico shows automakers have increasing flexibility to choose between the two countries to supply niche vehicles to American consumers or other markets.

‘Very Troubling’

Demand for small cars in the United States is waning and General Motors Co. faces a similar situation to Ford’s with its Chevrolet Cruze compact.

Were GM to go down the same path with the Cruze and shift its production out of U.S. factories, it could give more work to its Mexican plants – but might also bring its Chinese operations in Shenyang or Yantai into play.

GM did not immediately reply to a request for comment on its plans for the Cruze.

Studies show Mexican manufacturing is competitive, and business leaders believe that NAFTA talks between Mexico, the United States and Canada could ultimately yield tougher regional content rules for the region that benefit local investment.

Ford said its decision balanced cheaper Chinese labor rates against pricier shipping, but that in the end an already-planned refit of its Chinese factory saved it some $500 million over retooling both that facility and its Hermosillo plant in Mexico.

The volatile state of U.S.-Mexican trade relations also carries big risks if Trump renews his threats to impose 35-percent tariffs on cars made in Mexico.

To be sure, Trump has also threatened to levy 45-percent tariffs on Chinese goods and his Trade Representative Robert Lighthizer said he found Ford’s China move “very troubling.”

Trump’s threats have battered the peso, ironically making Mexico’s goods cheaper. Uncertainty over the future of NAFTA pushed the currency to a record low in January, although it has since rebounded.

That same month, the Boston Consulting Group published an assessment of manufacturing competitiveness that gave Mexico an 11-percent lead over China.

That advantage has prompted global firms to plow billions of dollars into the Mexican auto industry, pushing output to record highs. Some officials in the automotive sector painted Ford’s move as a one-off decision.

“There’s still very dynamic investment and growth in plants,” said Alfredo Arzola, director of the automotive cluster in Guanajuato state, one of Mexico’s top carmaking hubs.

Still, there have been “significant quality improvements” in Chinese cars, consultancy J.D. Power said in a 2016 study.

Chinese car manufacturing could catch up with international standards in China by 2018 or 2019, said Jacob George, general manager of J.D. Power’s Asia Pacific Operations, citing the consultancy’s gauge of “hard quality”, or failures.

However, when measured in terms of “perceptual” quality, China was probably still some 4 to 6 years behind, he added.

One of China’s Richest Women Hopes to Keep Driving Culture of Philanthropy

After starting work in a hotel kitchen, Zhai Meiqin began selling furniture and built a billion-dollar conglomerate, but she took great pride in being recognized this week for driving a new phenomenon in China: philanthropy.

Zhai, one of China’s richest women and president of the privately owned HeungKong Group Ltd., said she never forgot her humble upbringing in Guangzhou in southern China, where her father was an architect and her mother worked in a store.

This made her determined to help others, and she started donating to charity shortly after setting up the business with her husband in 1990.

As their business grew, taking in real estate, financial investment and health care, Zhai broke new ground in 2005 by establishing China’s first nonprofit charitable foundation.

Since then, the HeungKong Charitable Foundation has helped an estimated 2 million people, by funding 1,500 libraries, providing loans for women to start businesses, and funding orphans, single mothers, handicapped children and the elderly.

“I realized there were a lot of poor people in China and this drove me to earn more money so I could help them,” said Zhai, 53, who was one of nine philanthropists named Thursday as winners of the 2017 Carnegie Medal of Philanthropy.

Zhai and her husband, Liu Zhiqiang, whose HeungKong Group with 20,000 staffers has made them worth about $1.4 billion, according to Forbes magazine, are known for being leaders of the culture of philanthropy in China.

Their foundation was listed as number 001 by the Ministry of Civil Affairs. Zhai said at the end of 2015 there were 3,300 registered nonprofit charitable foundations in China.

Next generation

“By setting up the foundation, I wanted to encourage other people, other entrepreneurs, to also donate to charity,” she told the Thomson Reuters Foundation in a phone interview from Guangzhou translated by her daughter.

“Now I want to make sure that the next generation continues this culture of philanthropy in China,” she added, with two of her four children taking an active role in her foundation.

The other philanthropists to win the Carnegie Medal — which was established in 2001 and is awarded every two years — came from around  the globe.

The list included India’s education-focused Azim Premji, Canadian-born social enterprise pioneer Jeff Skoll and American-Australian lawyer and former World Bank Group President James Wolfensohn.

The winners were chosen by a committee made up of seven people representing some of the 22 Carnegie institutions in the United States and Europe.

Women on the Frontlines of Cambodia Land Fight

Cambodian activists fighting plans to transform Phnom Penh’s largest lake into a luxury development made a tactical decision when they took to the streets: put women on the frontline to show a “gentle” face and prevent violence.

But it was wishful thinking.

The women of Boeung Kak Lake, once home to a thriving community, have been kicked, manhandled, threatened and jailed, one of many land battles globally where women are bearing the brunt of the crackdown on protesters.

“We are mostly women because we are more gentle so we face less violence. This is our strategy,” said Im Srey Touch, a 42-year-old activist from Boeung Kak Lake.

“If we let men participate in our protests, we let them stand behind us or outside, and we stand in the front to reduce the likelihood of violence.”

​Evictions began in 2007

In fact, as the number of people killed in land conflicts around the world soars, more than half of the dead have been women, rights watchdogs say.

In Phnom Penh the conflict began in 2007 when nearly 4,000 families were stripped of their housing rights after the Cambodian government leased the Boeung Kak Lake area in the nation’s capital to make way for an upmarket mini city.

Since then, the lake has been filled with sand and most of the 4,000 families evicted, with little to no compensation, amid complaints about the social and environmental impact.

Over the years, more than a dozen activists protesting the evictions have been arrested, most of them women through whom land is passed down in many parts of Cambodia.

Whose courts?

In February, a court sentenced Tep Vanny, the most high-profile lake activist, to two and a half years in jail for inciting violence and assaulting security guards.

Rights observers say the government is using the courts and jails to muzzle activists, including those defending their land rights against government officials and their business cronies.

“It is a signal to civil society that ‘We can come after you whenever we want. The courts are ours. We can make anything we say about you stick,’“ said Phil Robertson, deputy director of Asia for New York-based nonprofit Human Rights Watch.

The government of Minister Hun Sen’s ruling Cambodian People’s Party (CPP) rejects such criticism and says it respects due process.

“The court makes decisions based on the constitution and, like every open society, the court provides justice to everyone no matter who they are,” said government spokesman Phay Siphan.

​Long history of land disputes

Amnesty International has criticized the Cambodian government for “bending the law to their will” to crack down on dissent. It said 42 criminal cases have been brought against the Boeung Kak Lake activists since 2011.

“Nobody believes Tep Vanny was assaulting these security guards,” said Robertson, who accused the judges of being “stooges” of the CPP.

Home to 15 million people, impoverished Cambodia has a long history of disputes over land rights, many dating back to the 1970s when the communist Khmer Rouge regime destroyed property records, and all housing and land became state property.

Cambodia began to privatize land after 1989, when Hun Sen’s CPP-led government shed its communist past and courted foreign investment, paving the way for economic land concessions.

“After privatization, land prices started going up, and people were at risk of land grabbing by companies, the state and well-connected individuals,” said Naly Pilorge, director of the nonprofit Cambodian League for the Promotion and Defense of Human Rights (LICADHO).

LICADHO says the lack of a publicly available land register detailing boundaries means authorities could confiscate land, claiming that affected families were living on state property.

Between 2000 and 2014, about 770,000 Cambodians were affected by land conflicts, according to charges presented by lawyers at the International Criminal Court in the Hague.

“Because Cambodia is lawless … with close ties between companies, government, the military and police, it’s a recipe for violence,” Pilorge said by phone from Phnom Penh.

A broken family

Despite the court cases and jail time, the Boeung Kak Lake women persist. They protest loudly and lie on the ground when ringed and roughed up by authorities. They are arrested in groups, sometimes just two, and, once, 13 of them.

Pilorge says authorities now appear to be trying a new tack, turning their energies onto Vanny on whom it is taking its toll.

During a brief recess before her guilty verdict Feb. 23, the 37-year-old divorcee who was arrested last August described the impact of her detention on her son, 11, and daughter, 13.

“I lost my role as a mother. I have a broken family. My child is sick,” she said, adding that she could not be there for her daughter’s surgery to remove her appendix.

“During the last hearing, my daughter cried until she fainted … I am a mother but I’m in prison. I can’t take care of her,” she said.

Activists suspect authorities are using her in a bid to silence other activists ahead of local elections this month and next year’s national vote.

A lake activist who was arrested with Vanny last year, Sophea Bov, was convicted for insulting authorities and fined $20. So far Bov has refused to pay the fine, Pilorge said, but no one has come for yet although the judge could imprison her.

“She was hoping that if she refused to pay the fine, she could go to prison to be with Vanny. Imagine where they are now, to think like that,” Pilorge said. “As human beings, we grow and we become stronger with challenges … these women have been tested, and they’ve overcome a lot of obstacles.”

 

Agriculture Group: Drought Has Cost Italian Farmers 1 Billion Euros

Soaring temperatures and a lack of rainfall across Italy have cost farmers 1 billion euros ($1.12 billion) so far this year, the national agricultural association said on Friday.

The government declared a state of emergency in the gastronomic heartland around the northern cities of Parma and Piacenza, a usually lush valley that produces tomatoes, cheese, and high-quality ham.

Wine grapes growing near Venice will be harvested early, mozzarella makers near Naples have been thrown into crisis, and Sardinian shepherds have taken tractors onto main roads to call for help to save their livelihoods, the Coldiretti group said.

The group’s chairman, Roberto Moncalvo, said the climate was becoming “tropical.”

“If we want to maintain high quality in agriculture we need to organize ourselves to collect water during rainy periods, doing structural work that cannot be put off any longer,” Moncalvo said.

($1 = 0.8935 euros)

China Probe of Big Companies Could Redefine Their Role Overseas

China is probing the loan practices of a group of big private sector conglomerates who have been on a high-profile global spending spree over the past few years.

And although the review targets only a few of the country’s most politically-connected companies, some analysts see an attempt to increase government control over the role played by the private sector in foreign markets.

“I think this is an attempt to change the direction (of) the role these Chinese companies play in the Chinese economy,” says Paul Gillis, a professor at Peking University’s Guanghua School of Management. “To align them more closely with the policies of the government and to reduce the risks that actions of these private companies could end up having a shock effect on the economy as a whole.”

Chinese authorities say they launched the probe because of worries that highly leveraged overseas deals pose risks to China’s financial system. Officials have already expressed worries over mounting debt among Chinese lenders, some of which may remain hidden by China’s opaque lending networks.

Notable companies targeted

According to media reports, the list of companies under review is a relative who’s who of Chinese enterprises.

Among those reportedly targeted are Dalian Wanda, which owns the AMC Theaters chain in the United States and has been actively courting deals in Hollywood. High-flying insurance company Anbang, which owns New York’s Waldorf Astoria and Essex House hotels. Also on the list is Hainan Airlines, which bought a 25 percent stake in Hilton Hotels last year and another insurance company Fosun, which owns Cirque de Soleil and Club Med.

Over the past few years, China has seen massive amounts of capital moving overseas with companies and wealthy individuals buying assets abroad. Authorities began taking steps late last year to tighten controls. But many big conglomerates view foreign investment as a golden opportunity – given the low global interest rate environment – and worth the risk of highly-leveraged investments.

Peking University’s Gillis says it appears the Chinese government is coming to terms with how to effectively regulate private enterprises, companies that behave more aggressively than their state-owned counterparts. But he also sees the move as a further consolidation of power by President Xi Jinping, bringing companies more under the control of the central government.

“I think many of the companies had a pretty favorable treatment from prior administrations, and I think Xi Jinping is less enamored of these large private companies than some of his predecessors were.”

Expensive acquisitions by companies like Wanda and Anbang have thrust China into the global spotlight. But the news and commentary that followed the companies’ mega-deals has not always been positive.

In some cases, the deals have given China a black eye, says Fraser Howie, author of the Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise. Anbang’s attempt last year to purchase Starwood Hotels is one example, he says.

“This is high profile, global Bloomberg headline, Chinese company buys Starwood Group, next week it’s all off because the funding was never there, the due diligence could never be completed there, it made all Chinese bidders look horrible,” said Howie. “It looks dreadful for the party and for the leadership that these private entrepreneurs are running out there and yet China as a country is being impacted by it.”

Earlier this month, the head of Anbang was the latest to be swept up in the ongoing financial crackdown.

Regulating private spending?

Authorities so far have not said specifically what the targeted companies may have done wrong, if anything. Some analysts argue that the probe is just a part of a process that began six month ago to curtail the flight of capital from China.

“If cross-border M&A deals make sense, if they deliver strong returns, then there should be no problem either for bankers or those doing the buying. But, if Chinese groups overpay and get the money to do so from Chinese banks providing risky or underpriced loans, then Chinese regulators have an obligation to step in,” Peter Fuhrman, Chairman and Chief Executive Officer of China First Capital tells VOA in an emailed response.

Others see a deeper message about Xi Jinping’s view on the role that private companies should serve broader national goals.

Howie says the probe challenges assumptions about the role of private enterprises in China.

“If anyone ever thought these companies were truly private in the sense of being independent or beyond government reach. Clearly that was never true,” he says. “Everyone operates at the discretion of the Communist Party, even if you’ve done nothing wrong and clearly even if you are wealthy.”

China Takes Delivery of First Shipments of American Beef in 14 Years

China let through the first shipments of beef from the United States in 14 years on Friday, after the two nations agreed to resume the trade in May, state media reported.

The imports were brought in by Cofco Meat Holdings Ltd from U.S. meat processor Tyson Foods Inc., China National Radio (CNR) reported on Friday, citing Beijing Entry-Exit Inspection and Quarantine Bureau.

China officially allowed U.S. beef imports from Tuesday this week after the two sides settled the conditions for exports last week.

Under the new rule, boneless and bone-in beef from cattle under 30 months of age will be eligible for imports. Beef destined for China must also be from cattle that can be traced to its birth farm, according to the rule.

Chinese importers are racing to bring in American beef to meet increasing demand for premium meat in the $2.6 billion beef import market.

Cofco’s imports, the first to have landed in China, will be sold on Cofco’s e-commerce platform Womai.com, according to CNR.

Arrivals of U.S. beef could erode sales of Australian beef in China’s lucrative premium meat market, as U.S. beef is expected to be cheaper because of low grain prices in the nation.

UN to Advertisers: Go Beyond the Female Stereotypes

Demeaning images in advertising of women doing domestic chores or scantily clad act as stubborn obstacles to gender equality, the head of U.N. Women said Thursday, urging the global ad industry to become a weapon for good.

Advertising has the power to create positive portrayals of women and eliminate stereotypes, Phumzile Mlambo-Ngcuka, executive director of the United Nations’ agency on women, told the Thomson Reuters Foundation.

Mlambo-Ngcuka spoke from France, where she is calling on advertising leaders who are attending the industry’s annual Cannes Lions Festival of Creativity to eliminate stereotypes and commit to gender equality.

“People are more likely to see adverts in their lives than read books,” she said. “It’s a waste if we are not using this opportunity for good.”

​Stereotypes everywhere

Stereotypes of women permeate the globe, she said, be it in nations such as Iceland with high gender equality or those with very little in the way of equal rights, like Yemen.

“Of the many things that we’ve tried to do to obtain gender equality, we are not getting the kind of traction and success that we are looking for, because of the underlying stereotypes and social norms in existence in society,” she said.

“Adverts create a role model that people look up to, even mimic and try to be like,” said the veteran South African politician.

“If they see men in powerful positions most of the time and do not see women and people who look like them … then they think this is not for them.”

Research illustrates issue

Research by the Geena Davis Institute on Gender in Media illustrates the issue, said Philip Thomas, chief executive of the annual advertising event in Cannes, who also participated in the interview with the Thomson Reuters Foundation.

One in 10 female characters in advertising is shown in sexually revealing clothing, six times the number of male characters, he said.

Of characters portrayed as intelligent, such as doctors or scientists, men are 62 percent more likely than women to play those roles, he said. Women are 48 percent more likely to be shown in the kitchen, he said.

Creative teams at advertising agencies are predominantly male, and just 11 percent of creative directors around the world are female, he said.

The industry can make an effort to mentor women, employ and promote more female creative teams and reward work that promotes positive images, he said.

Mlambo-Ngcuka said she welcomed efforts such as one in Berlin, where the city’s ruling coalition has agreed on a ban on degrading or sexist advertising.

An expert committee will examine and prevent discriminatory advertising on both privately and publicly owned advertising billboards and hoardings.

Opposition parties in Berlin say such a ban infringes on free speech.

“When it’s so much that is against us, I think we are allowed sometimes to make some extreme measures even if there’s a controversy,” she said. “Let’s have the discussion.”