YCLOAK

China Expands Globally Amid Concerns Over its Mercantilist Policies

By Yeco on Thursday, May 25, 2017

Just as President Xi Jinping was launching the One Belt, One Road initiative to expand China’s geo-economic footprint, a former high-level U.S. trade official raised concerns that Beijing has been reversing its policies of reform and keeping the market to itself.

Charlene Barshefsky, who worked as the U.S. Trade Representative under President Bill Clinton and witnessed China’s accession to the World Trade Organization, told a group of corporate executives gathered in Tokyo that “China has stopped the process of economic reform and opening, and instead has put in place a spate of measures that are zero-sum, highly mercantilist, and discriminate against U.S. and foreign companies.”

Sinicizing the Chinese economy

Barshefsky accuses Beijing of “Sinicizing” the Chinese economy, all the while taking advantage of other countries’ open markets.

The former U.S. trade representative’s remarks echo sentiments revealed in the latest Business Climate Survey put out by the American Chamber of Commerce in China, which represents nearly 1,000 companies doing business there.

Respondents to the survey said it seems “China has gone backwards … more regulations, taxes and local company market share protectionism.” Others noted that “despite a long track record of employing and training locals and investing in the local community, when the economy gets tough, the foreign firm is always seen as somehow not friendly to China.”

Golden days over?

William Zarit, head of AmCham China, tells VOA that “25 percent of our companies are either reducing investment or not increasing investment — that’s one out of four companies. Some companies are looking elsewhere in Asia, and some companies are looking back to North America.”

In another sign of how China is losing its luster in the eyes of foreign investors, the latest Business Climate Survey shows the percentage of companies that consider China a high priority investment destination has dropped below 60 percent. Zarit points out that nearly 60 percent “would seem to be good except that three or four years earlier, it was over 80 percent.”

Watch: William Zarit, president of the American Chamber of Commerce in China

Dangers despite continued presence

“Every company has to be in China, to a certain extent,” says Georgetown University’s Ted Moran, professor of business and economics.

While a majority of companies may choose to maintain a presence, their decisions to expand less rapidly “are also a danger,” Moran says.

“They may be there, but they’re not going to have as strong value-added, they’re not going to expand as rapidly, they’re not going to introduce their best technology,” which in turn will confine China to a work bench economy, instead of one where companies feel comfortable bringing in operations with higher technology components.

Watch: Ted Moran, Georgetown professor of business and economics

‘A lot of things we have to consider’

Barshefsky, the former trade official, calls on President Donald Trump to either renegotiate the trade relationship with China or to revive the Trans-Pacific Partnership led by the United States.

A Chinese trade official, speaking at the same forum, defended Beijing’s policies, saying the reform, although having slowed down, is still going on, and “there are a lot of things we have to consider.” The official, Long Yongtu, who now presides over the Boao Forum for Asia, also warned foreign companies to buckle up for stiff competition coming from Chinese domestic companies.

Resurgence of the state in the Chinese economy

Ever since China started accumulating more and more capital and demonstrating less and less hesitancy to use that capital to advance its interests abroad, many have voiced the concern that as Beijing’s investment spreads, so will its politics. Lately, concern over expansion of the state sector in the Chinese economy as well as the government-guided overseas investment strategy and potential consequences have grown louder.

In a report issued earlier this year by the Washington-based Peterson Institute for International Economics, Nicholas Lardy, a senior fellow, pointed to official figures released by the People’s Bank of China that corporate loans issued to government-backed firms rose from 35 percent in 2013 to 60 percent in 2014, the latest year official figures were available.

While one negative of pumping money into state-owned enterprises is that less capital and less market share would be available to smaller, private firms, other concerns have to do with both the financial viability of this approach and how it could impact not only China but the United States and other countries.

In a sign of both the ballooning footprint of Chinese state-owned companies in the world economy as well as the uncertainties of their fates, three Chinese state-owned companies made Fortune Magazine’s Global 500 list in 2016, but two of the three, China National Petroleum Corporation and Sinopec (a producer of chemical products) saw significant reductions in revenue in 2016 (more than 30 percent from the previous year), and a loss of profit of 56.7 percent and 30.6 percent, respectively.

Rory MacFarquhar, a former White House economics and finance official, warns that if the Chinese government continues to prop up state firms that he says are “more indebted, less profitable and less productive than private firms,” and use them to channel China’s plans and objectives abroad, it could have serious spillovers for other countries, including the United States, because the presence of these companies could potentially “distort the competitive playing field, and their outward investment may raise national security concerns.”

One Belt, One Road

President Xi promised that China would add billions of dollars’ worth of investment to the One Belt, One Road initiative. Asked if it is true that American companies are giving the initiative the “cold shoulder,” as some media reports have suggested, Zarit, the president of AmCham China, replied: “A number of AmCham China members are closely following OBOR developments to gauge progress and substantive opportunities for their respective companies, although some members still view the project with a bit of skepticism.

“Despite OBOR still being a fledgling initiative, the Chinese have rolled out this Xi Jinping presidential priority through an oversized summit with undersized substance. Having said that, American companies are interested in OBOR if it makes business sense.”
…

Economy

China Expands Globally Amid Concerns Over its Mercantilist Policies

By Yeco on Thursday, May 25, 2017

China recently rolled out a global economic initiative known as One Belt, One Road, named after the ancient Silk Road. Chinese President Xi Jinping says the initiative is aimed at promoting international cooperation, but former U.S. officials and some business executives are concerned that China is not keeping its doors as open as it claims. Natalie Liu has more from Washington.
…

Technology

New Generation of Companies Looks to Create New Kind of Plant-based Food

By Ytech on Thursday, May 25, 2017

In a San Francisco kitchen, chefs are re-creating everyday foods, such as eggs, mayonnaise, salad dressings and cookies from unconventional sources.

“Playing with ingredients that are totally different in the food system is a lot like walking on the moon. We’re doing things no one has ever done before so it’s challenging,” said chef Chris Jones, who heads product development at the Hampton Creek technology company.

While vegetarian foods have been around as long as there have been vegetarians, a new generation of companies, mostly from California, is using new technology to look for alternative protein sources that do not come from an animal.

Hampton Creek

Hampton Creek uses robotics to identify plants from around the world that can help re-create traditional foods substituting animal products with plant material.

“We look into the different molecular characteristics and ultimately we’re able to identify relationships between what we see on a molecular level and whether it causes a cake to rise or what makes a mayo taste good or whether it binds a cookie together or makes a nice creamy butter,” said Hampton Creek founder Josh Tetrick.

“It’s been really recent advances, both in screening methodologies as well as data science, that actually makes it possible,” said Jim Flatt, Hampton Creek’s chief of research and development.

Beyond burger

In the lab of another company, Beyond Meat, scientists re-created a hamburger patty out of proteins from yellow peas, soy and beets for the look of blood. The scientists are breaking down the building blocks of meat and going into the plant kingdom to look for those same elements. They’re then rebuilding them into a new kind of food that uses plant-based protein to create a patty that looks just like a beef patty

“What we’re doing is we’re taking plant matter. We’re running it through heating, cooling and pressure and that’s basically stitching together the proteins so they take on the fibrous texture of animal muscle,” said Beyond Meat founder Ethan Brown

These companies say plants hold the key to solving global food problems.

“Whether it’s Asia, Africa, India, you’re seeing a very strong trend toward increasing animal protein consumption. I don’t think as a globe we can afford that,” Brown said.

“The planet actually cannot work with the way we are consuming meat because we don’t have enough arable land to create enough cereals for all the animals that we need if we are to feed the world through meat,” said Jeremy Coller of Coller Capital, an investor of alternative protein foods.

“Food security is an increasingly big issue, particularly because of climate change and some other issues. I think if you expand the number of tools we can use to feed people really well, you help to mitigate against these risks,” said Tetrick, who envisions bringing healthier, new plant-based foods, that are culturally relevant to local cuisines, to regions in the world such as Africa, where hunger is no stranger.

For now, Beyond Meat’s patties are sold in Hong Kong and the U.S. Hampton Creek’s mayonnaise, salad dressings and cookies can be found in Mexico, Hong Kong and U.S. grocery stories. Both companies are trying to improve and expand their range of products.

“How do we figure out a way to make food healthier, that’s more sustainable, to actually taste good that’s actually affordable for everyone,” explained Tetrick of his mission.

Because of this greater global goal, those who work in this industry say the subject of alternative sources of protein is not a fad, but a trend that is here to stay.
…

Technology

Using the Internet to Monitor the Elderly at Home

By Ytech on Thursday, May 25, 2017

According to the National Institutes of Health, 17 percent of people around the world will be 65 or older by 2050. Currently it is just more than 8 percent. That expected flood of elderly people is prompting authorities to think about new ways to care for them, and no surprise, the internet is involved. VOA’s Kevin Enochs reports.
…

Economy

Treasury Chief Says US Reviewing Iran’s Aircraft Licenses

By Yeco on Thursday, May 25, 2017

U.S. Treasury Secretary Steven Mnuchin said on Wednesday that his department is reviewing licenses for Boeing Co and Airbus to sell aircraft to Iran, telling lawmakers he will increase sanctions pressure on Iran, Syria and North Korea.

“We will use everything within our power to put additional sanctions on Iran, Syria and North Korea to protect American lives,” Mnuchin said in testimony to the House Ways and Means Committee. “I can assure you that’s a big focus of mine and I discuss it with the president.”

He did not elaborate on the review of the aircraft licenses, which are tied to Iran’s compliance with a 2015 agreement with world powers to freeze its nuclear weapons development.

IranAir has agreed to buy a total of 200 U.S. and European passenger aircraft worth a total of $35 billion — $37 billion at list prices, though such deals typically include big discounts.

They include 80 passenger jets from Boeing, 100 from its European rival Airbus and 20 turboprop planes from Franco-Italian supplier ATR. All of the aircraft need U.S. export licenses.
…

Economy

Treasury Chief to Congress: Raise Debt Limit Before August

By Yeco on Wednesday, May 24, 2017

Treasury Secretary Steven Mnuchin told lawmakers on Wednesday that they should vote to increase the government’s borrowing authority — and avert a disastrous economic default — before their August recess.

Within hours, the conservative House Freedom Caucus said it would oppose such a vote unless certain conditions are met.

The timeline is earlier than previous estimates. It had been expected that Congress wouldn’t have to act on the politically painful measure until sometime this fall, but tax revenues are coming in lower than previously estimated.

Mnuchin also urged the House Ways and Means Committee to pass the debt limit legislation as a bill without controversial additions, such as spending cuts sought by conservatives, that could complicate its approval.

“We can all discuss how we cut spending in the future and how we deal with the budget going forward but it is absolutely critical … that we keep the credit of the United States as the most critical issue,” Mnuchin said.

Pelosi favors debt limit increase

Democrats, including House Minority Leader Nancy Pelosi of California, have promised to support a debt limit increase provided it’s not weighed down by GOP policy changes. But such a vote is sure to be painful for conservative Republicans who opposed hiking the debt limit, presently set at almost $20 trillion.

In a statement, the Freedom Caucus said it would oppose a “clean raising of the debt ceiling,” and “we demand that any increase of the debt ceiling be paired with policy that addresses Washington’s unsustainable spending by cutting where necessary, capping where able, and working to balance in the near future.”

The Freedom Caucus counts several dozen conservatives who wield considerable clout in the House.

‘Extraordinary measures’

White House budget director Mick Mulvaney told a separate House panel that the reason for the new deadline is that “receipts currently are coming a little bit slower than expected.”

Mnuchin said in a letter to lawmakers in March that that he has started employing bookkeeping measures to avoid breaching the debt limit.

Those maneuvers, set out in law, are deemed “extraordinary measures,” but in reality they have been employed numerous times by Mnuchin’s predecessors to buy time until Congress could pass the legislation needed to raise the borrowing limit.

The Congressional Budget Office has estimated that the bookkeeping maneuvers Mnuchin can use will be exhausted by sometime in the fall.

Mnuchin has urged lawmakers to move quickly to remove investor doubt about any potential default. Lawmakers had been expected to wait until September or later to act.

…

Science

New WHO Chief Stresses Health as Human Right

By Yscien on Wednesday, May 24, 2017

Tedros Adhanom Ghebreyesus, the World Health Organization’s newly elected director-general, says health as a human right is at the core of his vision for the organization he soon will lead.

The former Ethiopian health and foreign minister is the first African chosen to head the organization, which was created 69 years ago.

After a long, bruising campaign that began in 2015, Tedros beat out two other contenders, David Nabarro of Britain and Pakistani physician Sania Nishtar, for the post by winning 133 of the votes cast by 185 WHO member states.

“The outcome of the voting was very, very clear,” said Tedros. “Having confidence from the majority of member states gives me legitimacy to really implement the vision that I have already outlined.”

Tedros’ goals

That vision included five promises, which Tedros made to the World Health Assembly during a final campaign pitch preceding Tuesday’s secret ballot vote.

He said that he would “work tirelessly” to fulfill the WHO promise of universal coverage and would ensure “a robust response for emergencies to come.”

He promised to strengthen the frontlines of health, transform the World Health Organization into a world class force and lastly “place accountability, transparency and continuous improvement at the heart of WHOs culture.”

At a news conference in Geneva, he said the concept of health as a human right would be at the heart of whatever he did.

“Half of our population does not have access to health care,” he said. That, he said, could and should be remedied through universal health care coverage, which would address the issue of health as a human right and act as a spur to development.

“All roads should lead to universal health coverage and it should be the center of gravity of our movement,” he said.

Tedros begins his five-year term as director-general on July 1, succeeding Margaret Chan, who has headed the WHO for the past 10 years.

The newly elected director general said he wants to reform and transform the World Health Organization into a better, more responsive agency.

As Ethiopia’s minister of health, Tedros led a comprehensive reform of the country’s health system, including the expansion of the country’s health infrastructure and health insurance coverage.

Resources a constant priority

As WHO leader, Tedros said one of his first orders of business would be to strengthen the organization’s ability to respond swiftly and effectively to emergencies because “epidemics can strike at any time” and the WHO must be prepared.

“The campaign has ended, as you know, officially, but I think the work begins actually now. I know it is very difficult. It is going to be tough,” he said.

One of the major difficulties is that of money. Reform, tackling emerging and ancient diseases take a lot of money, something the World Health Organization, which reportedly is struggling to close a $2.2 billion gap, does not have.

The problem is likely to be made even worse given the Trump administration announced budget cuts to global health programs, including a 32 percent cut to USAID (U.S. Agency for International Development) and between 20 percent and 30 percent cuts for scientific research institutes.

The United States is the biggest WHO donor. U.S. President Donald Trump has suggested funding cuts to the organization might be in the offing.

Tedros observed that it is the poor that are the most affected by big financial cuts.

“I hope this will be understood before finalizing the proposal. I believe this will be taken into consideration,” he said.

He can take heart in that a congratulatory statement on his election from Tim Price, U.S. Health and Human Services Secretary did not threaten any funding cuts. Instead, he told Tedros the United States looked forward to working with him on changing the World Health Organization for the better.

“The United States is committed to helping advance reforms and cultivating greater global health security,” he said.
…

Technology

Instagram, Snapchat Rated ‘Worst’ Platforms for Young People

By Ytech on Wednesday, May 24, 2017

Instagram and Snapchat are the worst social media platform for young people’s mental health, and YouTube is the most positive, a new study suggests.

The ranking comes in a report from the British Royal Society for Public Health, which ranked the sites’ impact on young people.

“Social media has been described as more addictive than cigarettes and alcohol, and is now so entrenched in the lives of young people that it is no longer possible to ignore it when talking about young people’s mental health issues,” said Shirley Cramer, the chief executive of the RSPH.

“It’s interesting to see Instagram and Snapchat ranking as the worst for mental health and well being, both platforms are very image-focused and it appears they may be driving feelings of inadequacy and anxiety in young people.”

For the study, researchers surveyed about 1,500 young people age 14 to 24 from Britain, asking them to score the impact social media sites had on 14 “health and well-being” issues. Those include anxiety, depression, quality of sleep, body image, loneliness and real-world friendships and connections.

According the RSPH, YouTube was the most positive, followed by Twitter, Facebook, Snapchat and Instagram.

“Social media has dramatically shifted how we socialize, communicate, and form relationships with each other,” said Laci Green, a professional health YouTuber with 1.5 million subscribers. “Its impact cannot be understated.”

She added that since Instagram and Facebook “present highly curated versions of the people we know and the world around us, it is easy for our perspective of reality to become distorted.”

To combat the negative influence of social media, the researchers recommend adding pop ups that warn users of heavy usage, which was supported by 71 percent of the people surveyed.

Another recommendation is for social media companies that can tell from a user’s post that they’re in distress could discretely point them toward help. That was supported by 80 percent of those surveyed. Finally, nearly 70 percent said social media sites should note when a photo has been manipulated.

“As the evidence grows that there may be potential harms from heavy use of social media, and as we upgrade the status of mental health within society, it is important that we have checks and balances in place to make social media less of a wild west when it comes to young people’s mental health and well being,” said Cramer. “We want to promote and encourage the many positive aspects of networking platforms and avoid a situation that leads to social media psychosis which may blight the lives of our young people.”
…

Technology

Amazon Founder Gives $1 Million to Support Press Freedom

By Ytech on Wednesday, May 24, 2017

Amazon founder Jeff Bezos has promised to donate $1 million to support press freedom, the Reporters Committee for Freedom of the Press announced Tuesday.

“This generous gift will help us continue to grow, to offer our legal and educational support to many more news organizations, and to expand our services to independent journalists, nonprofit newsrooms and documentary filmmakers,” Reporters Committee Chairman David Boardman said. “We’ll also be better positioned to help local newsrooms, the places hit hardest by the disruption in the news industry and whose survival is every bit as crucial to American democracy as those entities headquartered in Washington and New York.”

The gift from Bezos, who also owns The Washington Post newspaper, is the largest the organization has ever received.

The Reporters Committee also announced that it will support First Look Media and help administer its Media Press Freedom Defense Fund of up to $6 million. First Look Media was established by eBay founder Pierre Omidyar.

Bezos and Omidyar have cited a need for efforts to support an independent press.

Last month, Omidyar’s philanthropy, the Omidyar Network, promised $100 million over the next three years to support journalism and fight fake news.
…

Economy

Moody’s Cuts China Credit Rating One Notch

By Yeco on Wednesday, May 24, 2017

Moody’s Investors Service downgraded China’s credit rating Wednesday – from Aa3 (Double A-3) to A1 – saying it expects China’s economy to erode in coming years as growth slows and its debt burden continues to rise. The downgrade comes as the government faces new financial challenges after years of credit-fueled stimulus.

Craig Erlam, senior market analyst at foreign exchange firm Oanda, said the credit downgrade comes as no surprise. “Because talk of Chinese debt and concerns about the size of Chinese debt has been going on for the last few years. They seem to be very reliant on these high levels of growth, which has been slowing,” according to Erlam.

China’s economy, the second largest in the world, grew 6.7 percent in 2016, down from 6.9 percent the previous year, the slowest pace since 1990. Erlam says the next few years could be challenging.

“They’ve [the Chinese government] talked about wanting to move away from an investment and export-led economy and focus more on domestic consumption and look at a more sustainable model. But, as we’ve seen over the last couple of years, as soon as it runs into any difficulties – it seems to revert back to where it was a couple of years ago and start spending more money on infrastructure.”

Moody’s expects the government’s direct debt burden to rise to 40 percent of GDP by 2018 and closer to 45 percent by the end of the decade. That’s still well below the 60 percent debt to GDP warning line for the European Union.

China’s Finance Ministry said the downgrade overestimates the risks of rising debt and claims it was based on “inappropriate methodology.” The downgrade is likely to increase the cost of borrowing, but analysts say the one-notch downgrade remains comfortably within the investment grade rating range.

Triple A is the highest rating for creditworthiness, followed by Double A, then Single A. C represents the weakest creditworthiness and means default is imminent.

China’s Shanghai Composite Index fell more than 1 percent after the credit downgrade while the value of the yuan slipped briefly 0.1 percent against the U.S. dollar.
…

Technology

More Robots to Take Over Humans’ Jobs

By Ytech on Wednesday, May 24, 2017

According to a recent analysis, in about 15 years, depending on the country, up to 38 percent of jobs performed by humans may be turned over to robots. Experts who gathered last week at a robotic expo in Paris say we have to prepare for the new reality if we want to avoid disruptive social changes. VOA’s George Putic reports.
…

Technology

E-vision Glasses Enhance Vision for the Legally Blind

By Ytech on Wednesday, May 24, 2017

There are an estimated 39 million blind people in the world. Another 200 million, people like Julissa Marquez, are visually impaired. A knife attack left her with a less than 10 percent chance of having useful vision. But some new technology has literally opened her eyes. VOA’s Kevin Enochs reports.
…

Technology

Youth Robotics Contest Promotes Innovation for Africa Economic Growth

By Ytech on Tuesday, May 23, 2017

Several hundred middle school and high school students from Senegal and surrounding countries spent last week in Dakar building robots. Organizers of the annual robotics competition say the goal is to encourage African governments and private donors to invest more in science and math education throughout the continent. Ricci Shryock reports for VOA from Senegal’s capital.
…

Technology

Tattoos Talk and Play Music

By Ytech on Tuesday, May 23, 2017

A tattoo artist in California has created what many of us can’t imagine — a tattoo that also produces sound. Artist Nate Siggard inks audio soundwaves onto the skin that makes it possible to hear music or someone’s voice by using a smartphone app. VOA’s Deborah Block explains how he does it.
…

Economy

New Deadline for Greece Set After Another Stalemate

By Yeco on Tuesday, May 23, 2017

Hopes for a breakthrough in negotiations for cash-strapped Greece were dashed again and another deadline was set.

Greece once again failed to get approval from its European creditors to receive the next batch of bailout loans that it needs to meet a debt repayment hump this summer. It also failed to secure an agreement on the sort of debt relief measures it can expect to get when its current bailout program ends next year.

Without the loans, Greece faces another brush with bankruptcy. The Greek government had hoped that Monday night’s meeting of the eurozone’s 19 finance ministers would at least have seen it cleared to get the money. After all, it legislated for further cuts and reforms last week to meet creditor demands.

Still officials tried to put a brave face on the stalemate.

“It would be preferable to postpone a decision for a few days, which would give us time to work harder and prepare a better solution, than to take decisions that just move the problem on and do not offer a clear way out,” Greek government spokesman Dimitris Tzanakopoulos said Tuesday.

The eurozone’s top official Jeroen Dijsselbloem said a broad settlement involving both the next payout and the outlines of a debt relief deal is close, and could be reached in three weeks when finance ministers from the 19 countries from the single currency bloc meet next in Luxembourg on June 15.

Several eurozone officials though, had said as much before Monday’s meeting, too.

While hailing the recent progress the Greek authorities have made to implement the reforms and cuts demanded from creditors, Dijsselbloem said certain issues still needed to be addressed. But time is running out for Greece as without the rescue loans it would struggle to meet a big repayment in July of some 7 billion euros ($7.8 billion).

The executive Commission, which is one of the overseers of Greece’s bailout, sought to downplay fears that Greece was heading for another financial crisis.

“We are convinced that Greece has delivered,” said Margaritis Schinas, the Commission’s spokesman. “Now it is up to its partners to do the same.”

One of the major stumbling blocks has centered on a divergence of opinion between the eurozone and the International Monetary Fund, which is not involved financially in Greece’s current three-year bailout program which was agreed in the summer of 2015 and which could be worth up to 86 billion euros in total.

Getting the IMF on board is important as Germany and The Netherlands have indicated that they will refuse to lend more money to Greece without the Fund’s participation.

The IMF has argued that the eurozone forecasts underpinning the Greek bailout are too rosy and that the country as a result should get substantial debt relief so it can start growing on a sustainable basis following a depression that’s seen the economy shrink by a quarter and unemployment and poverty levels ratchet up sharply. While the eurozone has ruled out any debt write-off, it has indicated that extending Greece’s repayment periods or reducing the interest rates on its loans are possible at the conclusion of the bailout next year.

While austerity measures over the past seven years have seen Greece’s annual budget position improve markedly, the country’s debt burden stands at around 180 percent, a level that the Greek government and the IMF think is unsustainable in the long-term — hence the insistence on some debt relief.

Dijsselbloem said the IMF welcomes the progress made by Greece, and is “impressed” by the reforms undertaken by Greece and that it stands ready to go to the board to get involved financially.

Though the history of Greece’s various scrapes with bankruptcy over the past seven years of its bailout era shows how matters can easily spiral out of control, the prevailing view in markets is that despite some caution, Greece will get its deal.

“Despite some disappointment this time, a deal is clearly in the making,” said Lorenzo Codogno, chief economist of LC Macro Advisors. “The baseline scenario is for a deal at the June 15 Eurogroup meeting, with sufficient debt relief to allow the IMF to stay attached.”

The protracted nature of Greece’s bailout program has been costly for the country. Though Greece emerged from its economic depression in 2014, the economy is back in recession, having shrunk for two straight quarters. Analysts say the main reason why Greece has taken a step back is its stalled bailout negotiations.
…

Science

Spacewalking Astronauts Tackle Urgent Station Repairs

By Yscien on Tuesday, May 23, 2017

Spacewalking astronauts made urgent repairs at the International Space Station on Tuesday, three days after a critical relay box abruptly failed.

The 250-mile-high (400-kilometer-high) replacement job fell to commander Peggy Whitson, the world’s most experienced female astronaut. She now ties the record for most spacewalks by an American – 10.

Even though a second relay box managed the data load just fine after Saturday’s breakdown, NASA scrambled to put together a spacewalk in order to restore backup capability. The system is vital for operating the station’s solar panels, radiators and robotic equipment.

The failed data-relay unit – recently refurbished with upgraded software – was just installed in March. Hauling out a spare, Whitson photographed the faulty device to help engineers figure out what went wrong. Then she quickly removed it and bolted down the spare, an identical 50-pound (22-kilogram) box measuring 14 by 8 by 13 inches (35-20-33 centimeters) – officially known as an MDM or multiplexer-demultiplexer. But when Whitson discovered some metal flecks on some of the bolt holes, she had to pull the spare box back out.

Whitson and Fischer were just out spacewalking on May 12. That excursion was cut short by leaking station equipment, leaving two antenna installations undone. So Fischer completed the chore Tuesday.

Altogether, Tuesday’s spacewalk was expected to last no more than a few hours – exceedingly short by NASA standards.

“Here we go again,” French astronaut Thomas Pesquet said via Twitter as his U.S. colleagues suited up for the spacewalk. As they ventured outside, Pesquet cautioned, “You guys be safe.”

It was only the second spacewalk for Fischer, a rookie astronaut who arrived at the orbiting lab last month.

“What’s more awesome than being on @Space-Station? Getting a call from mission control 4 another spacewalk! Dancing w/ the cosmos,” he said in a tweet.

After he had installed the antennas, Fischer radioed, “Oh my gosh, it’s so beautiful,” as the station sailed out over the tip of South America and over the South Atlantic.

Whitson is more than halfway through a 9 ½-month mission. Currently on her third spaceflight, she’s spent more time off the planet than any other American and, at age 57, is the oldest woman to ever fly in space. Tuesday’s excursion put her in third place on the all-time spacewalking list, behind a Russian and fellow American with more hours out in the vacuum.

The space station also is home to two Russians.

…

Science

The Benefits of Exercise, in Pill Form

By Yscien on Tuesday, May 23, 2017

The positive impact of exercise is old news. There really is no downside, mentally or physically, to getting up and moving around in any form from taking walks to lifting weights. But what if a pill could give you all those benefits. VOA’s Kevin Enochs reports.
…

Economy

Proposed Trump Budget Spares Old-age Programs, Slashes Other Items

By Yeco on Tuesday, May 23, 2017

President Donald Trump is proposing to balance the federal budget within 10 years by slashing many social programs, including some that help the poor pay for food and medical care, called food stamps and Medicaid.

Officials have outlined some new details of the president’s first spending plan. A president’s budget has to be approved by Congress, so the final form is often quite different from what the chief executive proposes. Democrats oppose many of Trump’s plans, and the president’s Republican allies in Congress are divided on some budget issues.

In his campaign, Trump promised not to cut Social Security, a government-run old-age pension program, or Medicare, which helps elderly people pay for doctors, hospitals and medicine. That means deeper cuts to some other programs.

Critics of Trump’s budget, including a group called “Campaign to Fix the Debt,” says these popular and expensive programs make up just over half of government spending over the next 10 years. They say it is difficult to balance the budget without trimming this spending. They also say administration officials have based the budget on “unrealistic and rosy economic growth projections.”
…

Economy

Gambia’s Exiled President Accused of Massive Public Theft

By Yeco on Monday, May 22, 2017

Gambia’s government used a court order Monday to seize assets belonging to exiled former President Yahya Jammeh.

They include nearly 90 bank accounts and 14 companies linked to Jammeh.

Justice Minister Abubacarr Tambadou says Jammeh stole $50 million in public funds before fleeing Gambia for Equatorial Guinea in January.

Jammeh and his associates have been unavailable for comment since he left the country.

Jammeh ruled Gambia for 22 years before losing December’s presidential election to Adama Barrow. He contested the results for several weeks before giving up and fleeing the country.

His long-ruling political party lost April’s parliamentary elections to the opposition United Democratic Party.

Along with allegations of looting public funds, investigators in Gambia are also probing a number of disappearances under the Jammeh government.

…

Technology

Robotics Contest for Youth Promotes Innovation for Economic Growth in Africa

By Ytech on Monday, May 22, 2017

The hum of tiny machines fills a fenced-off obstacle course, as small robots compete to gather mock natural resources such as diamonds and gold.

The robots were built by teams of young people gathered in Dakar for the annual Pan-African Robotics Competition.

‘Made in Africa’

The event’s founder, Sidy Ndao, says this year’s theme is “Made in Africa,” and focuses on how robotics developed in Africa could help local economies.

“We have noticed that most countries that have developed in the likes of the United States have based their development on manufacturing and industrialization, and African countries on the other hand are left behind in this race,” Ndao said. “So we thought it would be a good idea to inspire the kids to tell them about the importance of manufacturing, the importance of industry, and the importance of creation and product development.”

During the week, the students were split into three groups.

The first group worked on robots that could automate warehouses. The second created machines that could mine natural resources, and the third group was tasked to come up with a new African product and describe how to build it.

Building a robot a team effort

Seventeen-year-old Rokyaha Cisse from Senegal helped her team develop a robot that sends sound waves into the ground to detect the presence of metals and then start digging.

Cisse says it is very interesting and fun, and they are learning new things, as well as having their first opportunity to handle robots.

As part of a younger team, Aboubacar Savage from Gambia said their robot communicates with computers.

“It is a robot that whatever you draw into the computer, it translates it and draws it in real life,” Savage said. “It is kind of hard. And there is so much competition, but we are trying. I have learned how to assemble a robot. I have learned how to program into a computer.”

The event’s founder, Ndao, is originally from Senegal, but is now a professor at the University of Nebraska’s Lincoln College of Engineering in the United States.

“I have realized how much the kids love robotics and how much they love science,” Ndao said “You can tell because when it is time for lunch, we have to convince them to actually leave, and then [when] it is time to go home, nobody wants to leave.”

Outsourced jobs cost Africa billions

A winning team was named in each category, but Ndao hopes the real winners will be science and technology in Africa.

The organizers of the Next Einstein Forum, which held its annual global gathering last year in Senegal, said Africa is currently missing out on $4 billion a year by having to outsource jobs in science, technology, engineering, and mathematics to expatriates.

Ndao said African governments and private investors need to urgently invest more on education in those fields, in particular at the university level.
…

Technology

Robotics Contest for Youth Promotes Innovation in Africa

By Ytech on Monday, May 22, 2017

Several hundred middle school and high school students from Senegal and surrounding countries spent last week in Dakar building robots, and organizers hoped to encourage African governments and private donors to invest more in science and math education throughout the continent.
…

Technology

Hackers Hit Russian Bank Customers, Planned International Cyber Raids

By Ytech on Monday, May 22, 2017

Russian cybercriminals used malware planted on Android mobile devices to steal from domestic bank customers and were planning to target European lenders before their arrest, investigators and sources with knowledge of the case told Reuters.

Their campaign raised a relatively small sum by cybercrime standards — more than 50 million roubles ($892,000) — but they had also obtained more sophisticated malicious software for a modest monthly fee to go after the clients of banks in France and possibly a range of other western nations.

Russia’s relationship to cybercrime is under intense scrutiny after U.S. intelligence officials alleged that Russian hackers had tried to help Republican Donald Trump win the U.S. presidency by hacking Democratic Party servers.

The Kremlin has repeatedly denied the allegation.

The gang members tricked the Russian banks’ customers into downloading malware via fake mobile banking applications, as well as via pornography and e-commerce programs, according to a report compiled by cybersecurity firm Group-IB, which investigated the attack with the Russian Interior Ministry.

The criminals — 16 suspects were arrested by Russian law enforcement authorities in November last year — infected more than a million smartphones in Russia, on average compromising 3,500 devices a day, Group-IB said.

The hackers targeted customers of state lender Sberbank, and also stole money from accounts at Alfa Bank and online payments company Qiwi, exploiting weaknesses in the companies’ SMS text message transfer services, said two people with direct knowledge of the case.

Although operating only in Russia before their arrest, they had developed plans to target large European banks including French lenders Credit Agricole, BNP Paribas and Societe General, Group-IB said.

A BNP Paribas spokeswoman said the bank could not confirm this information, but added that it “has a significant set of measures in place aimed at fighting cyberattacks on a daily basis.” Societe General and Credit Agricole declined comment.

The gang, which was called “Cron” after the malware it used, did not steal any funds from customers of the three French banks. However, it exploited the bank service in Russia that allows users to transfer small sums to other accounts by sending an SMS message.

Having infected the users’ phones, the gang sent SMS messages from those devices instructing the banks to transfer money to the hackers’ own accounts.

The findings illustrate the dangers of using SMS messages for mobile banking, a method favored in emerging countries with less advanced internet infrastructure, said Lukas Stefanko, a malware researcher at cybersecurity firm ESET in Slovakia.

“It’s becoming popular among developing nations or in the countryside where access to conventional banking is difficult for people,” he said. “For them it is quick, easy and they don’t need to visit a bank. … But security always has to outweigh consumer convenience.”

Cybercriminals

The Russian Interior Ministry said a number of people had been arrested, including what it described as the gang leader.

This was a 30-year-old man living in Ivanovo, an industrial city 300 km (185 miles) northeast of Moscow, from where he had commanded a team of 20 people across six different regions.

Four people remain in detention while the others are under house arrest, the ministry said in a statement.

“In the course of 20 searches across six regions, police seized computers, hundreds of bank cards and SIM cards registered under fake names,” it said.

Group-IB said the existence of the Cron malware was first detected in mid-2015, and by the time of the arrests the hackers had been using it for under a year.

The core members of the group were detained on November 22 last year in Ivanovo. Photographs of the operation released by Group-IB showed one suspect face down in the snow as police in ski masks handcuffed him.

The Cron hackers were arrested before they could mount attacks outside Russia, but plans to do that were at an advanced stage, said the investigators.

Group-IB said that in June 2016 they had rented a piece of malware designed to attack mobile banking systems, called Tiny.z for $2,000 a month. The creators of the Tiny.z malware had adapted it to attack banks in Britain, Germany, France, the United States and Turkey, among other countries.

The Cron gang developed software designed to attack lenders including the three French groups, it said, adding it had notified these and other European banks at risk.

A spokeswoman for Sberbank said she had no information about the group involved. However, she said: “Several groups of cybercriminals are working against Sberbank. The number of groups and the methods they use to attack us change constantly.”

“It isn’t clear which specific group is being referred to here because the fraudulent scheme involving Android OS [operating system] viruses is widespread in Russia and Sberbank has effectively combated it for an extensive period of time.”

Alfa Bank did not provide a comment. Qiwi did not respond to multiple requests for comment.

Google, the maker of Android, has taken steps in recent years to protect users from downloading malicious code and by blocking apps which are insecure, impersonate legitimate companies or engage in deceptive behaviors.

A Google spokesman said: “We’ve tracked this malware family for several years and will continue to take action on its variants to protect our users.”

Fake mobile apps

The Russian authorities, bombarded with allegations of state-sponsored hacking, are keen to show Russia too is a frequent victim of cybercrime and that they are working hard to combat it. The interior and emergencies ministries, as well as Sberbank, said they were targeted in a global cyberattack earlier this month.

Since the allegations about the U.S. election hacking, further evidence has emerged of what some Western officials say is a symbiotic relationship between cyber criminals and Russian authorities, with hackers allowed to attack foreign targets with impunity in return for cooperating with the security services while Moscow clamps down on those operating at home.

The success of the Cron gang was facilitated by the popularity of SMS-banking services in Russia, said Dmitry Volkov, head of investigations at Group-IB.

The gang got their malware on to victims’ devices by setting up applications designed to mimic banks’ genuine apps. When users searched online, the results would suggest the fake app, which they would then download. The hackers also inserted malware into fake mobile apps for well-known pornography sites.

After infecting a customer’s phone, the hackers were able to send a text message to the bank initiating a transfer of up to $120 to one of 6,000 bank accounts set up to receive the fraudulent payments.

The malware would then intercept a confirmation code sent by the bank and block the victim from receiving a message notifying them about the transaction.

“Cron’s success was due to two main factors,” Volkov said.

“First, the large-scale use of partner programs to distribute the malware in different ways. Second, the automation of many [mobile] functions which allowed them to carry out the thefts without direct involvement.”
…

Science

Outgoing WHO Director Says Agency Remains Relevant

By Yscien on Monday, May 22, 2017

Margaret Chan, the outgoing Director General of the World Health Organization (WHO), has opened this year’s World Health Assembly (WHA) by staunchly defending the organization against critics who say it has lost its relevance.

Chan’s tenure as head of WHO will soon end and after 10 years of service, she appears intent on handing her successor, who will be elected Tuesday, an organization that is viable and remains the essential leader in global health.

In addressing the WHA for the last time, Chan presented 3,500 delegates from WHO’s 194 member states with, what could be seen, as a report card of her work by presenting some highlights from a report issued this month tracking the evolution of public health during her 10-year administration.

“The report sets out the facts and assesses the trends, but makes no effort to promote my administration. The report goes some way towards dispelling criticism that WHO has lost its relevance. The facts tell a different story,” Chan said.

Drug costs

The report covers setbacks as well as successes and some landmark events. Among the successes, she cited WHO’s decade-long fight “to get the prices for antiretroviral treatments for HIV down.”

In contrast, she said “prices for the new drugs that cure hepatitis-C plummeted within two years.”

The results in both cases have been dramatic in making life-saving drugs affordable for millions of people. During the past 10 years, antiretroviral treatments have fallen from $10,000 to less than $100 a year and Hepatitis C drugs, which cost a prohibitive $80,000 just two years ago can now be had for less than $200.

Chan noted for most of her tenure she has been faced with shrinking health budgets resulting from the 2008 global financial crisis.

Despite the austerity measures forced upon the organization, she said WHO has made significant progress in many areas. These include the elimination or reduction of neglected tropical diseases, bringing mental health out of the shadows and into the spotlight, and bringing polio and guinea worm closer to eradication.

Ebola epidemic

Along with these successes, Chan accepted responsibility for mistakes and bad decisions, including the WHO failure to recognize the magnitude of the Ebola outbreak in West Africa.

She acknowledged the devastating consequences of this lapse for the people of Liberia, Sierra Leone and Guinea, 11,315 of whom died from the deadly Ebola virus before the epidemic was declared in January 2016.

“But, WHO made quick course corrections,” said Chan, “and brought the three outbreaks under control through team work and partnerships and gave the world its first Ebola vaccine that confers substantial protection.

“This happened on my watch, and I am personally accountable,” she said.

New leader competition

The World Health Assembly, which runs through May 31, has an exceptionally heavy and important agenda, with the election of a new Director-General topping the list.

On Tuesday, delegates will choose the new head by secret ballot. The three nominees include the first African candidate Tedros Adhanom Ghebreyesus of Ethiopia; David Nabarro of Britain, and Sanja Nishtar of Pakistan.

This is the first time that there has been more than one candidate. Whoever wins this fiercely contested post will take office on July 1.

During the coming nine days, delegates will approve WHO’s program budget for 2018-19, which has risen to $4.7 billion. The Assembly also will discuss a wide-range of health-related issues, including polio eradication, antimicrobial resistance, access to medicines and vaccines, health emergencies and the health of refugees and migrants.

This forum offers an opportunity for health ministers and other officials to present their views.

Newly appointed U.S. Health and Human Services Secretary Tom Price took the floor Monday to express the Trump Administration’s commitment to work with the new director general “on an agenda for ongoing improvements” including changes to ensure “a rapid and focused response to potential global health crises.”

Price stressed the need for reform and said Washington expected the next director-general “to prioritize threats to global health, including influenza.”

He said “we will work to enable all countries around the world to prevent, detect, respond to, mitigate, and control these outbreaks.”

Looking ahead

In closing her remarks to the WHA, Margaret Chan urged governments to maintain investments in health development, which, she said “brings dramatic results, also as a poverty reduction strategy.”

She said behind every number and every statistic is a person “who defines our common humanity and deserves our compassion, especially when suffering or premature death can be prevented.”

Judging from the thunderous applause at the end of her speech, the delegates appeared to have given Margaret Chan a good report card for her work during the past 10 years.
…

Technology

Leaked Documents Reveal What Facebook Will Let You Post

By Ytech on Monday, May 22, 2017

Leaked Facebook documents reveal the company walks a fine line between free speech and violent or hateful content.

The Guardian newspaper says it obtained the “more than 100 internal training manuals, spreadsheets and flowcharts” outlining how the social media giant decides what content can stay and what gets taken down.

According to the documents, Facebook does allows certain posts that contain violent language. For example, it’s OK to post “let’s beat up fat kids,” but prohibited to post “someone shoot Trump.”

“People commonly express disdain or disagreement by threatening or calling for violence in generally facetious and unserious ways,” reads one of the documents.

Images showing non-sexual physical abuse or bullying of children as long as there is not a “sadistic or celebratory element.” Live streams of people harming themselves is also allowed, the documents say because Facebook doesn’t want to “censor or punish people in distress.”

A Facebook representative said the company’s top priority is keeping users safe.

“We work hard to make Facebook as safe as possible while enabling free speech,” said Monica Bickert, Facebook’s head of global policy management. “This requires a lot of thought into detailed and often difficult questions, and getting it right is something we take very seriously.”

Facebook has been under increased pressure to prevent violent content from appearing, as a stream of violent videos have been allowed to stay on the site for hours before being deleted.

One particularly gruesome video showed the brutal murder of Cleveland grandfather Robert Godwin in a crime posted on Facebook Live.

The company recently hired 3,000 more humans to help curb objectionable material, and The Guardian documents reveal the moderators are overwhelmed with requests to review material.

“These reviewers will also help us get better at removing things we don’t allow on Facebook, like hate speech and child exploitation, “ Facebook founder Mark Zuckerberg wrote in a post about the hiring. “And we’ll keep working with local community groups and law enforcement who are in the best position to help someone if they need it – either because they’re about to harm themselves, or because they’re in danger from someone else.”

The company also employs algorithms to mark objectionable content.

Facebook also faces criticism when it does take down material deemed offensive.

Last fall, the company removed an iconic photo showing a naked Vietnamese girl running from a napalm attack during the Vietnam War. Facebook later allowed the image to be posted.
…