G20 vows to fight coronavirus impact on poor nations

Yahoo - AFP, March 31, 2020

Saudi Arabia's King Salman chaired last week's emergency G20 videoconference which
pledged a 'united front' in the fight against the coronavirus (AFP Photo/Bandar AL-JALOUD)

G20 finance ministers and central bankers pledged Tuesday to address the debt burden of low-income countries and deliver aid to emerging markets as part of a plan to combat the coronavirus pandemic.

The announcement followed a second round of virtual talks after G20 leaders pledged a "united front" last week and said they were injecting $5 trillion into the global economy to head off a feared deep recession.

The ministers and bankers from major industrialised and emerging economies also welcomed a $160 billion World Bank relief package to be deployed over the next 15 months to support its member countries, the Saudi hosts said in a statement.

They agreed to press ahead with a plan to address "the risk of debt vulnerabilities in low-income countries" and work to "swiftly deliver... financial assistance to emerging markets and developing countries", the statement said.

The announcement comes a day after the UN called for a $2.5 trillion aid package to help developing countries weather the pandemic, including debt cancellation and a health recovery "Marshall Plan".

A report from the United Nations Conference on Trade, Investment and Development (UNCTAD) said two-thirds of the global population based in developing countries -- excluding China -- face "unprecedented economic damage" from the crisis.

The ministers and bankers tasked G20 working groups to outline details of the plan by the group's next meeting on April 15.

G20 countries will work with the Financial Stability Board -- an international body set up after the 2008 financial crisis -- to coordinate regulatory measures in response to the pandemic, the statement added.

'Decisive actions'

The talks follow criticism that the G20 has been slow to address the COVID-19 pandemic, which has left more than 40,000 people dead worldwide and triggered financial shock waves as some two-fifths of the globe's population is put under lockdown.

US President Donald Trump and Russian President Vladimir Putin joined last week's emergency summit chaired by Saudi Arabia's King Salman, who called for coordinated action while facing pressure to end an oil price war between Riyadh and Moscow that has roiled energy markets.

As concerns mount for poorer countries without access to capital markets or adequate health facilities, G20 leaders pledged to work with bodies such as the International Monetary Fund to deploy a robust financial package to support developing nations.

"We welcome the decisive actions many of you have taken to shield people and the economy from COVID-19, that led to a decline in volatility in major financial markets in recent days," IMF managing director Kristalina Georgieva said at Tuesday's meeting.

"Nonetheless we remain very concerned about the negative outlook for global growth in 2020 and in particular about the strain a downturn would have on emerging markets and low-income countries."

G20 trade and investment ministers also held an extraordinary meeting on Monday, as they assess the impact of the crisis on global trade.

They said they were working to ensure the flow across borders of medical supplies and equipment -- which are in short supply in some hard-hit nations -- as well as critical agricultural products, and other essential goods and services.

"We will guard against profiteering and unjustified price increases," they said in a statement, while also warning against trade barriers and disruption to global supply chains.

White House, Senate agree on $2 trillion coronavirus rescue plan

Yahoo – AFP, Michael Mathes, March 25, 2020

The measure will put cash directly into the hands of Americans hard hit by the
crisis (AFP Photo/Brendan Smialowski)

Washington (AFP) - The White House and Senate have reached agreement on a $2 trillion stimulus package for the US economy and millions of Americans ravaged by the coronavirus crisis, top lawmakers said early Wednesday.

"At last, we have a deal," Senate Majority Leader Mitch McConnell said, hailing the massive "wartime level of investment into our nation" reached after five days of arduous and tense negotiations.

"We have a bipartisan agreement on the largest rescue package in American history," top Senate Democrat Chuck Schumer said shortly after McConnell spoke.

"So many people are being put out of work through no fault of their own. They don't know what their future is going to be like, how are they going to pay the bills," Schumer added.

"Well, we come to their rescue."

The Senate and House of Representatives still need to pass the legislation before sending it to President Donald Trump for his signature.

McConnell said the Senate will vote on the measure later Wednesday.

The deal aims to buttress the teetering economy by giving roughly $2 trillion to health facilities, businesses and ordinary Americans buckling under the strain of the coronavirus pandemic.

It will put cash directly into the hands of Americans hard hit by the crisis, provide grants to small businesses and hundreds of billions of dollars in loans for larger corporations including airlines.

The pandemic has infected 55,000 and killed nearly 800 in the US (AFP Photo/

SETH HERALD)

It also proposes the injection of around $130 billion into what Schumer calls "a Marshall Plan for hospitals" and health care infrastructure, referring to the huge American aid program to rebuild Europe after World War II.

With infection numbers rising from coast to coast, hospitals have been in dire need of equipment like protective gear, intensive care beds and ventilators.

Asian equities soared Wednesday on the news, with Tokyo's Nikkei closing up eight percent and oil prices also climbing.

US stocks had already surged Tuesday on expectations of an agreement.

McConnell and Schumer negotiated the deal with Treasury Secretary Steven Mnuchin and other White House officials after days of bitter partisan fighting over what to put into the final package.

Mnuchin had shuttled between the Capitol offices of the Senate's leaders as they and staffers hammered out the language of the bill.

The agreement followed multiple failed attempts to advance a Republican-led proposal, and pressure had soared to swiftly reach a compromise.

President Donald Trump called for an immediate resolution to the stalemate.

"Congress must approve the deal, without all of the nonsense, today," he said Tuesday on Twitter.

"The longer it takes, the harder it will be to start up our economy. Our workers will be hurt!"

Senate Majority Leader Mitch McConnell hailed the massive 'wartime level of 

investment into our nation' (AFP Photo/SAUL LOEB)

'Stop negotiating'

Democrats rejected the original package, arguing that it put corporations ahead of workers, including health professionals on the front lines of the battle against a pandemic that has infected 55,000 and killed nearly 800 in the US alone.

As the hours ticked away Tuesday, several lawmakers voiced their anxiety.

"Pass the damn bill. Stop negotiating. Enough is enough," a visibly angry Republican Senator Lindsey Graham said on the floor, after accusing Democrats of "nickeling and diming at a time people are dying."

Any relief package that passes the Senate will need to clear the Democratic-led House too before going to Trump.

Speaker Nancy Pelosi unveiled a more generous, roughly $2.5 trillion counterproposal that included ambitious elements like guaranteed paid and family medical leave, student loan forgiveness and oversight of the $500 billion earmarked for corporations.

But she signaled the House may simply take up the Senate bill and try to pass it.

"Much of what we have in our bill is reflected in this supposed agreement," Pelosi said.

According to Schumer, the compromise legislation includes an oversight mechanism for the company loans, and will guarantee that laid-off workers "on average, will receive their full pay for four months."

Pelosi suggested the measure might even pass the House by unanimous consent.

But getting 435 lawmakers to swallow a gargantuan rescue package without debate could be an uphill proposition in a sharply divided chamber.

Congressman Justin Amash, a former Republican who left the party after feuding with Trump, slammed the agreement, tweeting that it gave "far too little for those who need the most help, while providing hundreds of billions in corporate welfare."

IMF, World Bank call for suspending debt payments by poorest nations

Yahoo – AFP, March 25, 2020

The World Bank's International Development Association fights poverty in some
of the world's poorest countries, including Central African Republic (AFP Photo/
CAMILLE LAFFONT)

The International Monetary Fund and World Bank on Wednesday called for governments to put a hold on debt payments from the world's poorest nations so they can battle the coronavirus pandemic.

"The World Bank Group and the IMF believe it is imperative at this moment to provide a global sense of relief for developing countries as well as a strong signal to financial markets," the Washington-based development lenders said in a joint statement.

The move aims to help countries that are home to two-thirds of the world's population living in extreme poverty -- largely in sub-Saharan Africa -- and qualify for the most generous, low-cost loans from the International Development Association (IDA) financed by wealthier nations.

"The coronavirus outbreak is likely to have severe economic and social consequences for IDA countries" which will face "immediate liquidity needs to tackle challenges posed by the coronavirus outbreak," the organization said.

The IMF and World Bank called on the Group of 20 nations to support the initiative for "all official bilateral creditors to suspend debt payments from IDA countries that request forbearance."

In addition, the institutions called for an analysis of the financing needs these countries will face, and whether their total debt load is sustainable.

Part of the World Bank, the IDA is one of the largest sources of assistance for the world's 76 poorest countries, providing zero or low interest loans spread over 30 years or more, and grants to some distressed nations.

In the fiscal year ending June 30, 2019, IDA commitments totaled $22 billion, of which 36 percent was provided on grant terms, according to the World Bank.

Richest one percent made 82% of wealth created last year: Oxfam

Yahoo – AFP, 22 January 2018

Residents walk on a wooden plank to cross a garbage-filled waterway in Manila
on January 17, 2018

The world's richest one percent raked in 82 percent of the wealth created last year while the poorest half of the population received none, Oxfam said Monday, as the world's elite prepared to mingle at the World Economic Forum in Davos.

A new report from the charity also found that the wealth of billionaires has grown six times faster than that of ordinary workers since 2010, with another billionaire minted every two days between March 2016 and March 2017.

Oxfam used its findings to paint a picture of a global economy in which the wealthy few amass ever-greater fortunes while hundreds of millions of people are "struggling to survive on poverty pay".

"The billionaire boom is not a sign of a thriving economy but a symptom of a failing economic system," Oxfam executive director Winnie Byanyima said in a statement.

Oxfam also emphasised the plight of women workers, who "consistently earn less than men" and often have the lowest paid, least secure jobs. Nine out of 10 billionaires are men, it added.

The report, titled "Reward Work, not Wealth", used data from Credit Suisse to compare the returns of top executives and shareholders to that of ordinary workers.

It found that chief executives of the top five global fashion brands made in just four days what garment workers in Bangladesh earn over a lifetime.

"The billionaire boom is not a sign of a thriving economy but a symptom of a failing
economic system," Oxfam executive director Winnie Byanyima said in a statement

"The people who make our clothes, assemble our phones and grow our food are being exploited to ensure a steady supply of cheap goods, and swell the profits of corporations and billionaire investors,"said Byanyima.

To fight rising inequality, Oxfam called on governments to limit the returns of shareholders and top executives, close the gender pay gap, crackdown on tax avoidance and increase spending on healthcare and education.

The study was released on the eve of top political and business figures meeting at a luxury Swiss ski resort for the annual World Economic Forum, which this year says it will focus on how to create "a shared future in a fractured world".

"It's hard to find a political or business leader who doesn't say they are worried about inequality," said Byanyima.

"It's even harder to find one who is doing something about it. Many are actively making things worse by slashing taxes and scrapping labour rights."

The world's richest one percent raked in 82 percent of the wealth created last year, says Oxfam. https://t.co/yr1DJ7LQ9H@AFPgraphics breaks down the numbers here pic.twitter.com/ZenyC6m2jO

— AFP news agency (@AFP) January 22, 2018

EU launches debit cards for refugees in Turkey

Yahoo – AFP, September 26, 2016

European Commissioner for Humanitarian Aid and Crisis Management Christos
 Stylianides (L) delivers a speech next to Turkey’s EU Minister Omer Celik (R)
during a joint press conference following their meeting on September 26, 2016
(AFP Photo/Adem Altan)

Ankara (AFP) - The European Union on Monday launched a scheme worth almost 350 million euros providing mainly Syrian refugees in Turkey with pre-paid debit cards, the biggest project yet under a landmark deal between the bloc and Ankara.

EU Humanitarian Aid Commissioner Christos Stylianides, in Ankara for the start of the programme, said the debit cards will help give vulnerable refugees a "sense of normality" in their lives.

The refugees will be able to use the cards in shops or institutions to pay for food, education, housing and clothing or also to withdraw cash from ATMs.

Each card will be automatically topped up with 100 Turkish lira ($33.50) a month, giving people the chance to choose their own purchases.

Stylianides said the programme was an "unprecedented response" to an "unprecedented crisis".

"This (scheme) is, in our humanitarian field, a game-changer in the delivery of humanitarian aid. Refugees can choose what they spend money on."

Turkey is home to some three million refugees, most of them Syrian. The vast majority live in cities without direct support from non-governmental organisations and aid groups.

Supported with 348 million euros ($392 million) from Brussels and its member states, the scheme will be rolled out by Turkish Red Crescent and the UN World Food Programme supported by the Turkish authorities.

Applications will start in October for the scheme. Families who have children going to school will receive more cash. All refugees registered in Turkey, including Iraqis, are eligible to apply.

Stylianides suggested that the programme would also benefit Turks.

"The money will be spent in local shops, boosting local businesses and encouraging social cohesion between citizens and refugees."

The project is part of a six billion euro ($6.75 billion) deal struck in March between Brussels and Ankara to curb the migrant influx into Europe, which saw more than a million arrive in the EU last year.

There have been fears the deal could collapse with President Recep Tayyip Erdogan complaining that the promised money was not handed directly to Turkey.

In exchange for cutting the flow, Brussels also offered Turkey visa liberalisation for its citizens to visit EU countries in the Schengen area as well as accelerated membership talks.

But Ankara has threatened to withdraw from the agreement if Europe does not allow visa-free travel for Turks by next month, though the numbers coming to Europe have dropped significantly since March.

Cheers as UN irons out roadmap to end poverty

Yahoo – AFP, 3 Aug 2015

Jubilant UN member states put the finishing touches to a hugely ambitious
roadmap aimed at wiping out poverty worldwide by 2030 and taking on climate
change (AFP Photo/Haidar Hamdani)

United Nations (United States) (AFP) - Jubilant UN member states put the finishing touches to a hugely ambitious roadmap aimed at wiping out poverty worldwide by 2030 and taking on climate change.

United Nations Secretary-General Ban Ki-moon lauded the hard-fought agreement, saying it "encompasses a universal, transformative and integrated agenda that heralds an historic turning point for our world."

After a week of heated negotiations at UN headquarters in New York, experts and diplomats from the 193 member states adopted a draft about 30 pages long entitled "Transforming Our World: The 2030 Agenda for Sustainable Development."

To cheers, Kenyan Ambassador Macharia Kamau called it "really a historic moment." Kenya chaired the negotiations along with Ireland.

World leaders will attend a Sustainable Development Summit at the UN September 25-27 to adopt a sustainable agenda document, firing the starting gun on efforts to improve the lives of one billion people living on less than $1.25 a day, mainly in Asia and sub-Saharan Africa.

Negotiators set out 17 new sustainable development goals seeking to end poverty, promote wellbeing and safeguard the environment -- all by 2030.

"This is the People’s Agenda, a plan of action for ending poverty in all its dimensions, irreversibly, everywhere, and leaving no one behind," proclaimed Ban of the multitrillion-dollar initiative.

The UN chief vowed that the September summit, on the sidelines of the UN General Assembly, "will chart a new era of sustainable development in which poverty will be eradicated, prosperity shared and the core drivers of climate change tackled."

The new 2015-2030 Sustainable Development Goals builds on the success of the Millennium Development Goals, which helped drag millions out of poverty.

But the new drive will go significantly further, targeting the causes of poverty and the need for development that works for all people.

Funding the massive effort will be key to its success and last month donor nations confirmed they aim to set aside 0.7 percent of gross national income for development aid, after several days of at-times fractious talks between rich nations and developing countries.

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UN aims to 'end poverty' with 2030 agenda for sustainable development

New York plans $15 minimum wage at fast-food chains

Yahoo – AFP, 23 July 2015

Low wage workers, many in the fast-food industry, join with supporters in front 

of a McDonald's to demand a minimum wage of $15 an hour, on April 15, 

2015 in New York (AFP Photo/Spencer Platt)

New York (AFP) - New York state was poised Wednesday to raise the minimum wage to $15 in the fast-food sector, a key victory in a long-running workers campaign for liveable wages.

A three-person panel appointed by New York Governor Andrew Cuomo said the state's current minimum wage of $8.75 an hour should be increased to $15, a raise of more than 71 percent.

Cuomo had indicated he would follow the panel's recommendation.

"What a great, great day!" Cuomo, a Democrat, said at a news conference with the leaders of the $15 campaign.

Governor Andrew Cuomo speaks to labor 

leaders, workers and activists at a rally for

 a $15 minimum hourly wage on July 22, 

2015 in New York (AFP Photo/Spencer

Platt)

The wage increase will be phased in, starting with fast-food chain restaurants operating in New York City. They are due to meet the new minimum wage by 2018, while elsewhere in the state fast-food restaurants will have until 2021 to comply.

The federal minimum wage is $7.25 an hour, but states and municipalities can set their own. Some 29 states and Washington, DC, have minimum wages above the federal minimum.

"We're getting $15 before every other state," said Eric Schneiderman, New York attorney general.

"It's a victory you have all built," he said, thanking the labor leaders and Cuomo. "This is a victory for all men and women who work hard."

Activists have been pushing for several years to get the $15 minimum wage in the fast-food sector, notorious for low pay that workers say does not keep them out of poverty.

Under pressure from unions, McDonald's announced in April a pay hike for 90,000 employees in company-owned restaurants, though that does not affect the majority of its restaurants, which are owned by franchisees.

From July 1 the starting wages for full and part-time workers in its own restaurants were raised by one dollar above the local minimum wage.

The move followed similar wage increases announced by Wal-Mart Stores, Gap and others, all under pressure from labor and social groups over low pay.

Cuomo said that New York state's $15 minimum wage decision would "radiate" across the country.

"If it's right in New York, it's right in California," he said.

In May, Los Angeles, the second biggest US city, passed an increase in its minimum wage from $9 to $15 an hour by 2020. That followed a similar move by Seattle one year ago.

Other states and communities have also passed, or are weighing increases to, statutory minimum pay, after years in which inflation eroded the spending power of US workers.

But only a few have moved toward the $15 target that worker groups are calling for.

According to US labor data, workers in the food preparation and serving-related occupations comprise 22 percent of US employees who make at or below the minimum wage. Workers such as waiters can earn less than the minimum wage if they make up the gap in tips.

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