ReportWire

Tag: Opinion

  • In 2023, Bitcoiners Must Stop Shooting (Or Blocking) The Messengers

    In 2023, Bitcoiners Must Stop Shooting (Or Blocking) The Messengers

    [ad_1]

    This is an opinion editorial by Heidi Porter, an entrepreneur with 35 years in the tech industry.

    I love Bitcoin — and the world that Bitcoin helps create — as much as any of the most passionate Bitcoiners do. As such, I want to do and say things that help it succeed. This desire is not even an iota unique.

    However, sometimes what does not feel productive, is productive.

    Constructive criticism is productive discourse for Bitcoin. Pointing out incorrect assumptions is productive discourse for Bitcoin. Enumerating dangers is productive discourse for Bitcoin. Calling out hypocrisy of goals versus actions is (or can be) productive discourse.

    [ad_2]

    Heidi Porter

    Source link

  • Malaysias TVET Ecosystem in Need of All-of-Society Engagement

    Malaysias TVET Ecosystem in Need of All-of-Society Engagement

    [ad_1]

    TVET students from Tech Terrain College in Malaysia visited as part of The Asia Foundation’s research work on improving technical and vocational education in the country . Credit: The Asia Foundation/ Whitney Legge
    • Opinion by Nadya Subramaniam, Fauwaz Abdul Aziz (kuala lumpur, malaysia)
    • Inter Press Service

    KUALA LUMPUR, Malaysia, Jan 20 (IPS) – Technical and Vocational Education and Training (TVET) in Malaysia originated from the colonial and early post-colonial governments’ need for trained and skilled manpower to run state agencies and projects.

    Over the last few decades, the TVET system has shifted notably towards efforts to collaborate with industry players. The Ministries of Education, Higher Education and Human Resources have been the more recognised public faces in matters of TVET.

    Up to 10 other ministries (Youth and Sports, Women, Family and Community Development, Agriculture and Food industries, Defence, Works, and Rural and Regional Development, among others) and as many as 20 government bodies have had their own TVET programmes operating independently and with different standards (for capacity planning, recruitment and training and curriculum development).

    There are also sub-ministry bodies, such as the Rubber Industry Smallholders Development Authority (RISDA) and MARA. Hundreds of private TVET providers with little-known operations, performance and standards exist.

    Although the National Occupational Skills Standard (NOSS) serves as the national curriculum for the recruitment and training of TVET instructors and trainees, some ministries operate independently and keep to their own standards. Some bodies operate in silos, while others compete with each other.

    Masterplan lacking

    Here, we see the entanglement of parallel, overlapping or even competing jurisdictions and standards, and the lack of one lead agency to champion and coordinate the national TVET agenda.

    This results in a duplication of offerings, especially apparent in situations where public and private TVET institutes in close geographical proximity to each other compete for students.

    In one particular district in northern Malaysia that we visited, for example, one local TVET institution providing automotive courses complained of having to compete fiercely with several other local TVET training providers in close proximity to one another for students interested in acquiring the same skills certification.

    The divergence caused by the multiplicity of stakeholders has led to differing preferences in employers. Some employers will hire based on the reputation of the TVET training provider (such as the Penang Skills Development Corporation, PSDC), while others prefer to hire skilled workers based on the accrediting body of the certification.

    Other employers prefer TVET graduates with certificates accredited by the Malaysian Qualifications Agency (MQA), which is under the Ministry of Higher Education, over those accredited by the Human Resources Ministry’s DSD. An institute chairman reported to us that his institute saw a decrease in applicants after the Department of Public Services in charge of civil service employment withdrew recognition of a particular DSD certification.

    Currently, important political actors – state governments, district and municipal/town councils and economic programmes such as the five Regional Economic Corridors, have yet to clearly and systematically integrate and engage in projects to develop national TVET.

    Clearly, too many organisations involved in the management of TVET have led to confusion, lack of clarity, weak enforcement and needless duplications, thereby exacerbating the already poor image of TVET among the key stakeholders (namely, industry, parents, students and the community at large).

    The Human Resources Ministry’s Department of Skills Development (DSD) regularly engages with the industry to gain their input. The Sistem Latihan Dual Nasional (National Dual Training System, SLDN) was established to increase collaboration with industry and provide work-ready TVET graduates.

    In fact, several small, private TVET institutes – often with an industry parent or partner organisations – do provide skilled workers who meet industry needs, thus ensuring their students’ employability.

    Large-scale collaborations with industry have shown some success; the Malaysian Plastics Manufacturers Association (MPMA) collaborated with the Economic Planning Unit (EPU) in 2012 and 2017 for talent development in the plastics industry, using both local and international expertise. Based on a recent Auditor General’s Report, current employer satisfaction with TVET graduates’ outcomes is at 88.5%.

    Solving the Conundrum

    However, a common point raised by our interlocutors is that industry players are seldom, inadequately and unsystematically engaged in the development of TVET programmes. Industry players, on the other hand, say they do not see clear returns on their investment when they collaborate with ministries and other stakeholders on TVET. They are especially wary about the complicated bureaucracy involved.

    A survey found that more than one-fifth of 507 locally based companies said they either would not allow trainees from the SLDN programme to perform on-site operations side-by-side with their employees (17.8%) or were not sure if they would allow the trainees to do so (10.2%).

    An overwhelming majority of the companies (82.2%) said they would not participate in the SLDN programme, while 13.4% said they were not sure. Only 4.4% said they would.

    The lack of adequate collaboration has led to a mismatch of skills for the needs of the industry. Now, employers have to spend time and resources retraining their fresh hires, leading to their unwillingness to offer high salaries to fresh TVET graduates. It frustrates existing trainees and deters many others from joining TVET programmes because, at the end of the day, they might not even be hired.

    Despite the positive commitment and various initiatives and developments, TVET in Malaysia is still plagued by the lack of synergies, efficiencies and shared aspirations among its key players and stakeholders. However, we believe there is a way out of the woods.

    Most generally, an overall improved audit of the TVET system, covering all ministries and the governance system, needs to be done. The institutional framework should then be rationalised to focus on skills development efforts that align with national socio-economic priorities. That said, strategic collaboration across ministries and industry support must be improved.

    There is also a need for shared responsibility and more autonomy among states and district and local authorities, as well as for greater engagement with the regional economic corridors. A whole-of-government as well as a whole-of-society approach should be adopted for forging partnerships and strengthening the TVET system. To this end, increased inter-ministry data sharing would be important to support effective decision-making.

    As for the role of industry in TVET, it is a consensus among many observers and stakeholders that TVET needs to become industry-driven. The industry should be accorded a prominent role in steering the national TVET agenda, instead of merely being invited to collaborate.

    TVET institutions, meanwhile, should be empowered and incentivised to engage with their stakeholders, especially industry partners, expand partnerships with the industry beyond student internships and curriculum development, and inculcate innovative learning through student mentorship, project-based learning and guest lectures.

    To improve the quality assurance of TVET, a single quality assurance system (as recommended in the mid-term review of the 11th Malaysian Plan) should be implemented to make TVET pathways comparable to academic ones.

    A rating exercise, however, should also be undertaken on all TVET providers to enhance the overall management of TVET and to publicly ascertain the quality of these providers. A review of all approved TVET courses based on established protocols and end-user (industry) participation is planned, although the question of how this review would be carried out (e.g. balanced scorecard) has not yet been answered.

    Audit reviews at the appropriate frequency should be carried out on selected TVET providers in order to assess, for example, course alignment with industry requirements.

    All efforts to revamp the TVET system as the preferred education pathway will have to be accompanied by focused, coherent, national-level, branding initiatives targeted at specific groups; from students and parents to the community and industry. TVET should be highlighted as a potential incubator for entrepreneurs in order to attract more high-quality students.

    Finally, the marketing of TVET through new and traditional media is crucial. The public image of TVET needs to be raised to motivate the next generation.

    Nadya Subramaniam is a Program Manager at The Asia Foundation, leading the initiative to support the growth and development of Malaysia’s TVET Ecosystem. She is also involved in digital upskilling efforts aimed at women microentrepreneurs and youth living below the poverty line.

    Fauwaz Abdul Aziz is a Projects Researcher at Penang Institute, and is currently completing his PhD dissertation in anthropology at the Friedrich-Alexander University (FAU) Erlangen–Nürnberg in Bayern, Germany.

    Note: The authors have been involved in a research partnership formed in early 2021 between The Asia Foundation (TAF) and the International Institute of Public Policy and Management (INPUMA), University of Malaya, to understand the critical constraints and challenges facing TVET in Malaysia, in order to support the growth and improvement of the system. Funded by the Australian Department of Foreign Affairs and Trade, the research involved engaging with diverse stakeholders in the national TVET system in interviews, focus group discussions, a policy lab, and site visits.

    The stakeholders ranged from TVET students, instructors and administrators to government officials, institutional representatives and industry players. The outcome was the publication, in January 2022, of Recommendations Towards Improving Technical and Vocational Education and Training in Malaysia, which assessed the national TVET ecosystem and proposed ways to improve that system. The complete report can be downloaded here.

    This article was first published by Penang Institute on 6th January 2023 and is republished with permission.

    IPS UN Bureau

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • Mainstream Bitcoin Exchanges Have Obscured The Value Of Private, P2P Alternatives

    Mainstream Bitcoin Exchanges Have Obscured The Value Of Private, P2P Alternatives

    [ad_1]

    This is an opinion editorial by Okada, mechanical engineer and contributor to peer-to-peer bitcoin exchange RoboSats.

    Buying your first bitcoin has dramatically changed since the early days of trading on forums or Internet Relay Chat (IRC). Large exchanges sprung up and nowadays, they’ve perfected the art of attracting newbies through demystifying the buying experience with seamless and, quite frankly, mindless user interfaces.

    Over time, regulators pressured exchanges into collecting users’ data to verify their personal credentials. Exchanges such as these — we’ll call them “verification” exchanges (VEXs) — have custody of your funds and have tools at their disposal to track your identity-linked funds on chain. The reader should already be aware of the advantages of self custody, a topic worthy of its own detailed exploration.

    [ad_2]

    Okada

    Source link

  • The People of Africa Need Relief: the Biden Administration can Provide it

    The People of Africa Need Relief: the Biden Administration can Provide it

    [ad_1]

    US-Africa Leaders Summit. Credit: Wikimedia Commons
    • Opinion by Pauline Muchina, Emira Woods (nairobi, kenya)
    • Inter Press Service

    NAIROBI, Kenya, Jan 19 (IPS) – United States Treasury Secretary Janet Yellen is traveling to South Africa, Zambia, and Senegal this week in the hopes of strengthening U.S.-Africa relations at a time of waning U.S. influence on the continent — the first in a series of Biden administration trips announced at last month’s U.S.-Africa Leaders Summit.

    As African women leaders working for peace and climate justice, we welcome this renewed engagement with a region that is too often sidelined. But meetings and photo-ops are not enough.

    If the United States wants the trust of the African people, we need more than words. We need tangible action to materially improve the lives of communities across the continent.

    There are two steps the Biden administration could take today to do just that: supporting a new issuance of Special Drawing Rights (SDRs) for cost-free, debt-free crisis relief, and providing additional financial support for the Loss and Damage Fund agreed to at COP27, the most recent UN Climate Conference.

    Three years since the COVID-19 outbreak, under one-third of Africans have received a single vaccination dose. Economic growth in Africa slowed “sharply” in 2022, due to a worldwide economic slump, inflation, and an ongoing series of shocks.

    The World Bank is warning of a “sharp, long-lasting slowdown” in 2023 that will “hit developing countries hard.” One-fifth of Africa’s population faces chronic hunger—double the world average—and the climate crisis is only deepening these stark statistics.

    For perspective: Driven by climate and conflict, half of Somalia’s population faces acute food insecurity. Trekking for weeks to refugee camps for food, many Somalis are forced to bury starved loved ones in shallow graves.

    Against such challenges, the 2021 issuance of $650 billion in SDRs by the International Monetary Fund provided a lifeline for millions of Africans. SDRs are a reserve asset that can be issued in times of crisis at no cost to the U.S. or any other country. Developing countries can then use these SDRs to pay debts, stabilize currencies, or fund critical purchases like vaccines and food supplies.

    Since the 2021 issuance, over 100 low- and middle-income countries have used their SDRs for often life-saving care for their citizens. African countries used SDRs more than any other region, with 47 of 54 African nations using some or all of their allocation.

    Though last year’s SDR issuance was impactful, it was not enough. That’s why African leaders like African Union Chair Macky Sall and finance ministers across the continent are calling for a new SDR issuance of at least the same size.

    The UN Global Crisis Response Group on Food, Energy, and Finance; dozens of US lawmakers; the International Chamber of Commerce; and nearly 150 civil society organizations worldwide also support the proposal.

    Additionally, African countries must be compensated for the harms caused by a climate crisis for which they bear little responsibility. Despite having contributed the least of any continent to greenhouse gas emissions, Africa remains the most vulnerable to climate change.

    Nineteen million Africans have been affected by extreme weather events in 2022 alone, and cyclones and droughts wrought havoc on infrastructure, agriculture, and domestic economies.

    In the words of the Pan-African Climate Justice Alliance, “you cannot set fire on someone’s house and sell them the fire extinguisher, or worse still, loan them money to rebuild it.” The Loss and Damage Fund will provide climate reparations through financial support to nations most vulnerable to climate shocks.

    The Fund’s impact, however, will only be as strong as the world’s commitment. While nations like Germany and Belgium have made symbolic pledges to the fund, current contributions fail to address the existential magnitude of the crisis. Increased U.S. financial backing will pave the way for additional support from other high-income countries.

    Naysayers may balk at the cost of these proposals, or suggest they do not align with U.S. national interests. However, a new SDR issuance, while costing nothing to U.S. taxpayers, would foster global economic—and therefore political—stability, while proving U.S. responsiveness to African needs.

    Following the passage of the highest-ever Pentagon budget, the Biden Administration should recall their own analysis that climate change exacerbates global security challenges.

    Instead of paying massive sums for weapons of war, often in the name of debunked strategies to counter terrorism, the U.S. should invest in measures that address the root causes of violent conflict in places like Somalia and the Sahel.

    During last month’s U.S.-Africa Leaders Summit, 60 organizations, including Partners In Health, Africans Rising, and Friends of the Earth US, called on President Biden to support these two urgent proposals. At the time, he failed to do so.

    As Secretary Yellen travels to our continent, the administration has another opportunity to move beyond rhetoric and toward action to improve the lives of Africa’s 1.2 billion people.

    Supporting a new SDR issuance and contributing funding for the Loss and Damage Fund would go a long way toward salving the ever-present economic wounds of colonialism, addressing the climate crisis, and bolstering opportunities for Africans to chart their own course in the 21st century and beyond.

    Pauline Muchina comes from the Rift Valley in Kenya, where her family still resides. She is the Policy, Education and Advocacy Coordinator for Africa for the American Friends Service Committee in Washington, DC, and the Chair of the COVID-19 Working Group of the Advocacy Network for Africa.

    Emira Woods, originally from Liberia, is the Executive Director of Green Leadership Trust and an ambassador for Africans Rising for Justice, Peace, and Dignity, a network of African social movements on the continent and the diaspora.

    IPS UN Bureau

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • What Black Investors Can Teach You About Bitcoin

    What Black Investors Can Teach You About Bitcoin

    [ad_1]

    This is an opinion editorial by Nicholas Otieno, a freelance writer focused on fintech and crypto.

    Bitcoin has received growing attention from investors, the media and regulatory authorities as its price rises and adoption develops worldwide. However, relatively little is known about the black investors who have been attracted to it. Whether you are purchasing bitcoin or not, you can learn important lessons from these black Americans and become a more intelligent investor in any field.

    In the late 2010s, a significant number of black Americans began researching Bitcoin with enthusiasm. They saw the promise of its blockchain technology, a distributed ledger that provides an immutable record of transactions. They watched the price movement of bitcoin hitting record highs, which doubtlessly appealed to them as well.

    [ad_2]

    Nicholas Otieno

    Source link

  • Ukraine Crisis and No First Use of Nuclear Weapons

    Ukraine Crisis and No First Use of Nuclear Weapons

    [ad_1]

    • Opinion by Daisaku Ikeda (tokyo, japan)
    • Inter Press Service

    TOKYO, Japan, Jan 18 (IPS) – The Ukraine crisis that erupted in February last year continues with no prospect for cessation. The intensified hostilities have inflicted great suffering in population centers and destroyed infrastructure facilities, compelling large numbers of civilians, including many children and women, to live in a state of constant peril.

    The history of the twentieth century, which witnessed the horrors caused by two global conflicts, should have brought home the lesson that nothing is more cruel or miserable than war.

    During World War II, when I was in my teens, I experienced the firebombing of Tokyo. To this day, I remember with great vividness getting separated from family members as we fled desperately through a sea of flames, and not learning that they were safe until the following day.

    How many people have lost their lives or livelihoods in the ongoing crisis, how many have found their own and their family’s ways of life suddenly and irrevocably altered?

    Many other countries have also been seriously impacted in the form of constrained food supplies, spiking energy prices and disrupted financial markets.

    It is crucial that we find a breakthrough in order to prevent any further worsening of the conditions facing people worldwide, to say nothing of the Ukrainian people who are compelled to live with inadequate and uncertain supplies of electricity amidst a deepening winter and intensifying military conflict.

    I therefore call for the urgent holding of a meeting, under UN auspices, among the foreign ministers of Russia, Ukraine and other key countries in order to reach agreement on a cessation of hostilities. I also urge that earnest discussions be undertaken toward a summit that would bring together the heads of all concerned states in order to find a path to the restoration of peace.

    Together with calling for the earliest possible resolution to the Ukraine crisis, I wish to stress the crucial importance of implementing measures to prevent the use or threat of use of nuclear weapons, both in the current crisis and all future conflicts.

    Nuclear rhetoric has ratcheted up, and the risk that these weapons might actually be used stands today at its highest level since the end of the Cold War. Even if no party seeks nuclear war, the reality is that, with nuclear arsenals in a continuing state of high alert, there is a considerably heightened risk of unintentional nuclear weapon use as a result of data error, unforeseen accident or confusion provoked by a cyberattack.

    Along with reducing tensions with the goal of resolving the Ukraine crisis, I feel it is of paramount importance that the nuclear-weapon states initiate action to reduce nuclear risks as a means of ensuring that situations do not arise—either now or in the future—in which the possibility of nuclear weapons use looms. It was with this in mind that in July last year I issued a statement to the Nuclear Non-Proliferation Treaty (NPT) Review Conference in which I urged the five nuclear-weapon states to make prompt and unambiguous pledges that they would never be the first to launch a nuclear strike—the principle of “No First Use.”

    Regrettably, the August NPT Review Conference was unable to reach consensus on a final document. But this in no way means that the nuclear disarmament obligations set out in Article VI of the treaty no longer pertain. As the various drafts of the final document indicate, there was widespread support for nuclear risk reduction measures such as the adoption of No First Use policies and extending negative security assurances, by which nuclear-weapon states pledge never to use nuclear weapons against states that do not possess them.

    The pledge of No First Use is a measure that nuclear-weapon states can take even while maintaining for the present their current nuclear arsenals; nor does it mean that the threat of the some 13,000 nuclear warheads existing in the world today would quickly dissipate. However, what I would like to stress is that should this policy take root among nuclear-armed states, it will create an opening for removing the climate of mutual fear. This, in turn, can enable the world to change course—away from nuclear buildup premised on deterrence and toward nuclear disarmament to avert catastrophe.

    Looking back, the global state of affairs during the Cold War era was characterized by a series of seemingly insoluble crises that rattled the world, spreading shockwaves of insecurity and dread. And yet humankind managed to find exit strategies and pull through.

    One example of this is the Strategic Arms Limitation Talks (SALT) held between the United States and the Soviet Union. Intention to hold these was announced on the day of the 1968 signing ceremony for the NPT, which had been negotiated in response to the bitter lessons of the Cuban Missile Crisis. The SALT negotiations were the first steps taken by the US and the USSR to put the brakes on the nuclear arms race based on their nuclear disarmament obligations under Article VI of the NPT.

    For those involved in these talks, to impose constraints on the nuclear policies that had been developed as the exclusive prerogative of the state could not have been easy. Nonetheless, this was a decision indispensable to the survival not only of the citizens of their respective nations, but of all humankind.

    Having experienced first-hand the terror of teetering on the brink of nuclear war, the people of that time brought forth historic powers of imagination and creativity. Now is the time for all countries and peoples to come together to once again unleash those creative powers and bring into being a new chapter in human history.

    The author is Peace builder and Buddhist leader Daisaku Ikeda, who is President of the Soka Gakkai International (SGI). https://www.daisakuikeda.org/ Read full statement here full statement

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • The Value of Strong Multilateral Cooperation in a Fractured World

    The Value of Strong Multilateral Cooperation in a Fractured World

    [ad_1]

    • Opinion by Ulrika Modeer, Tsegaye Lemma (united nations)
    • Inter Press Service

    UNITED NATIONS, Jan 18 (IPS) – The multilateral system, even in the face of heightened geopolitical tension and big power rivalry, remains the uniquely inclusive vehicle for managing mutual interdependencies in ways that enhance national and global welfare. The complex challenges of a global pandemic, climate emergency, inequality and the risk of nuclear conflict cannot be dealt with by one country or one region alone. Coordinated collective action is required.

    Without coordinated and timely collective global action in recent years to respond to the COVID-19 pandemic, global suffering would have been far greater.

    Initiatives such as COVAX and the UN’s socio-economic response to COVID-19 not only helped mitigate the public health emergency, but also help decision-makers look beyond recovery towards 2030, managing complexity and uncertainty.

    The devastating war in Ukraine has been a colossal blow to multilateral efforts by the international community to maintain peace and prevent major wars. However, multilateral cooperation cannot be declared obsolete – it is crucial in efforts to put human dignity and planetary health at the heart of cross-border cooperation.

    The recent Black Sea Grain Initiative agreement represents a key testament to the value of multilateral cooperation working even in the most difficult circumstances, ensuring the protection of those that are most vulnerable to global shocks.

    Without this agreement, global food prices would have risen even further, and vulnerable countries pushed further into hunger and political unrest.

    The multilateral system is faced with the ostensible imbalance in matching humanitarian and development needs with Official Development Assistance (ODA) commitments. Despite some donors’ efforts to maintain – and even increase – their ODA commitments, others are faced with increasing politicization of aid – and it is part of the political calculus.

    With the war in Ukraine still raging, there is real possibility that several donors will tap into ODA budget to cover the partial or entire cost of hosting Ukrainian refugees and rebuilding the devastated Ukrainian infrastructure and economy.

    The UN system, a core part of the rule-based international order, is funded dominantly by voluntary earmarked contributions. Ultimately, this gives donor countries influence over the objectives of global public good creation.

    Funding patterns tend to be unpredictable, making it hard to strategize and plan for the long term. Although earmarked funding allows the system to deliver solutions to specific issues with scale, the system’s lack of quality funding support risks eroding its multilateral character, strategic independence, universal presence, and development effectiveness.

    The recently launched report by the Dag Hammarskjöld Foundation and the UN’s Multi-Partner Trust Fund Office showed that more than 70 percent of funding to the UN development system is earmarked, compared to 24 percent for the World Bank Group and IMF, and only 3 percent for the EU.

    As the world faces daunting development finance prospects in 2022-2023, investments should focus on protecting a strong and effective multilateral system; the system that remains trusted by countries and partners for its reliable delivery of services.

    It has also proven to complement bilateral, south-south and other forms of cooperation – beyond the traditional development narrative. An ODI study showed that the multilateral channel, when compared with bilateral channel, remains less-politicized, more demand-driven, more selective in terms of poverty criteria and a good conduit for global public goods.

    Notwithstanding the institutional and bureaucratic challenges that the multilateral system faces, which must be addressed head-on, a retreat from a shared system of rules and norms that has served the world for seven decades is the wrong response.

    Those of us in the multilateral system, especially in the UN development system, must recognize the difficult work that lies ahead. We must continue to demonstrate that each tax dollar is spent judiciously and show traceable results, while upholding the highest standards set out in the UN charter.

    Improved transparency on how and where we spend the funds entrusted to us by our key partners and the IATI standard have long been adopted as key requirement outlined in the funding compact.

    The Multilateral Organisation Performance Assessment Network and other donor assessments have recognized the systems’ value for money and confirmed that partnerships with other UN entities improve programmes and effectively integrates multiple sources of expertise.

    Of course, the system must continue to build on successes and lessons to prove to our partners that we remain worthy of their trust and drive our collective agenda.

    However, the true value of multilateral cooperation can only be fully realized with strong political commitment by partners matched with the necessary financial investment.

    Ulrika Modéer is UN Assistant Secretary-General and Director of the Bureau of External Relations and Advocacy, UNDP; Tsegaye Lemma is Team Leader, Strategic Analysis and Corporate Engagement, Bureau of External Relations and Advocacy, UNDP.

    Source: UNDP

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • Dear Normie, Don’t Buy Bitcoin

    Dear Normie, Don’t Buy Bitcoin

    [ad_1]

    This is an opinion editorial by Tim Niemeyer, co-host of the Lincolnland Bitcoin Meetup.

    Source

    As you might have learned from watching the mainstream news, the bitcoin price has been pumping as of late. If you bought the top and held until now, you may consider taking advice from good ol’ Mr. Goldshill himself, Peter Schiff, and use this opportunity to sell. If you’re someone who missed the boat, though, you may reasonably wait for confirmation and buy closer to $70,000. For those thinking to make a quick buck, you might hop on for a ride just to try and cash out near the next all-time high. If you’re a Communist who doesn’t believe we need a noncoercive way to coordinate human action… well, then, I can’t help you.

    [ad_2]

    Tim Niemeyer

    Source link

  • NATOs Opportunity in the Indo-Pacific

    NATOs Opportunity in the Indo-Pacific

    [ad_1]

    • Opinion by Taehun Lim (gwangiu, south korea)
    • Inter Press Service

    GWANGIU, South Korea, Jan 17 (IPS) – Given the tensions in the Indo-Pacific, a co-operation between South Korea, Japan and NATO sends a message of deterrence and shared liberal values.

    The year 2022 was pivotal for the West and the NATO military alliance. Russia’s invasion of Ukraine and China’s mounting military threats against Taiwan forced NATO to recalibrate its risk analysis.

    The NATO summit in Madrid in June was, therefore, remarkable in that two far-eastern states, South Korea and Japan, were invited. While Japan already has the status of a Western actor within the framework of the G7, the invitation to South Korea to attend the summit was particularly surprising.

    Although Seoul has been a global partner of NATO since 2006, co-operation to date has been essentially diplomatic. South Korea had already been invited to NATO meetings of foreign ministers several times before, but this had not led to any geopolitical commitment on its part to NATO or Europe.

    But circumstances have changed. The invitation to the summit was driven by NATO’s most important member by far – the US, an ally of South Korea. Does this mean that Japan and South Korea will now take on new significance for Europe and the Far East in terms of security policy?

    There was immediate praise for the Indo-Pacific strategy from Washington.

    On 28 December, the South Korean government under new President Yoon Suk-yeol published a strategy for the Indo-Pacific region for the first time. It stated that the country’s focus should be on promoting freedom, peace and prosperity through the creation of a rules-based order and co-operation on the rule of law and human rights.

    The 43-page document includes only one paragraph on China, Seoul’s largest trading partner and the rival of its most important ally, the US. On taking office in May, Yoon announced a hard line towards China and since then has intensified the security co-operation with the US.

    The Indo-Pacific strategy indirectly addresses fears of military action by China against Taiwan and calls for a resumption of the summit meetings between South Korea, Japan and China, the last of which took place in 2019.

    It states that co-operation with Japan is essential for promoting co-operation and solidarity between like-minded nations in the Indo-Pacific region – a clear indication that Yoon wants to improve relations between these neighbouring countries.

    Seoul also wants to expand co-operation with the Quad – the Quadrilateral Security Dialogue between Australia, India, Japan and the US – which is seen as a counterweight to China’s ambitions in the region. There was immediate praise for the Indo-Pacific strategy from Washington.

    Advantages of closer co-operation for NATO

    Closer ties between South Korea and Japan and a security partnership with the two East Asian states would have strategic advantages for NATO. With South Korea, it can benefit immediately from the strength of the country’s armed forces, not least in light of China’s military build-up in the Indo-Pacific.

    The South Korean military is well-equipped and combat-ready because of constant North Korean military provocations. Moreover, South Korea holds large-scale joint military exercises with the US every year. Secondly, South Korea can contribute to NATO through co-operation on armaments, and can supply high-quality weapons.

    The competitiveness of its arms industry is demonstrated, for example, by Poland’s purchase of South Korean tanks and howitzers in response to Russia’s invasion of Ukraine. Third, as a leader in digital technology, South Korea can strengthen NATO’s cybersecurity against Russia and China (and North Korea).

    Fourth, as a globally important microchip manufacturer, South Korea – along with Japan and Taiwan – is seen by the US as part of a microchip alliance whose task is to isolate China completely from the microchip supply chain. Conversely, South Korea thus serves as a reliable partner in the microchip supply chain for NATO countries.

    The current Japanese government under Fumio Kishida wants to raise the country’s military spending to two per cent of GDP by 2027 and to acquire 500 Tomahawk cruise missiles. Such an enhancement of Japan’s military capabilities would provide NATO with further strategic options in the face of China’s military build-up in the Indo-Pacific.

    Advantages for South Korea and Japan

    From a Far Eastern perspective, a strategic partnership with NATO would help in managing the Chinese military threat.

    As a first step, joint military exercises involving NATO and East Asian countries could be held in the Indo-Pacific (where the US, France, the UK and Germany already have a military presence) or in Europe, in order to enable, for instance, the defence of free and unfettered trade flows in the South China Sea.

    As a second step, the Far Eastern countries and NATO could perhaps establish an intelligence alliance comparable to the ‘Five Eyes’ of the Anglo-Saxon powers. This would enable the two sides of the alliance to exchange military intelligence and facilitate the formulation of joint strategies towards China and Russia.

    As a third step, NATO and the Far Eastern countries could establish an informal military alliance similar to the Quad, which would strengthen collective security on both sides.

    Co-operation between South Korea and NATO not only sends a clear message about deterrence but also represents a commitment to the defence across the world of the liberal values that both sides share.

    For a successful strategic partnership between NATO and the Far East to develop, relations between South Korea and Japan must improve significantly. The smouldering conflict over how to address the issue of Japan’s colonial history stands in the way of close co-operation.

    The enforced prostitution of Korean women during the colonial period, the visits of Japanese politicians to the Yasukuni Shrine, where Japanese war criminals are buried, and the border dispute over the Liancourt rocks (Dokdo in Korean, Takeshima in Japanese) are some of the unresolved historically controversial issues.

    This is compounded by the Japanese trade sanctions imposed on South Korea in 2019, which aim to impede the further rise of the South Korean industry. Fortunately, the current South Korean government under Yoon Suk-yeol is keen on significantly improving relations with its neighbour in order to boost a security co-operation between the two sides vis-à-vis China and North Korea.

    The Japanese government will now have to respond to the signals from Seoul, if necessary, also involving the US as a mediator.

    NATO’s decision in August to accept South Korea’s request to designate an embassy to represent the country in dealings with the military alliance bodes well for the development of a close strategic partnership. Given the rising military tensions in the Indo-Pacific and China’s military threats against Taiwan, co-operation between South Korea and NATO not only sends a clear message about deterrence (and thus the prevention of war) but also represents a commitment to the defence across the world of the liberal values that both sides share.

    Dr Taehun Lim, who works at the Institute for Eurasian Research and Humanities at Chonnam National University, South Korea, studied international politics at the University of Strasbourg and received his PhD in the same field from the University of Cologne. From 2011 to 2013, Dr Lim served as an artillery lieutenant in the South Korean army.

    Source: International Politics and Society (IPS)-Journal published by the International Political Analysis Unit of the Friedrich-Ebert-Stiftung, Hiroshimastrasse 28, D-10785 Berlin

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • 10 simple investments that can turn your portfolio into an income dynamo

    10 simple investments that can turn your portfolio into an income dynamo

    [ad_1]

    Many people are good at saving up money for retirement. They manage expenses and build up their nest eggs steadily. But when it comes time to begin drawing income from an investment portfolio, they might feel overwhelmed with so many choices.

    Some income-seeking investors might want to dig deeply into individual bonds or dividend stocks. But others will want to keep things simple. One of the easiest ways to begin switching to an income focus is to use exchange-traded funds. Below are examples of income-oriented exchange-traded funds (ETFs) with related definitions further down.

    First, the inverse relationship

    Before looking at income-producing ETFs, there is one concept we will have to get out of the way — the relationship between interest rates and bond prices.

    Stocks represent ownership units in companies. Bonds are debt instruments. A government, company or other entity borrows money from investors and issues bonds that mature on a certain date, when the issuer redeems them for the face amount. Most bonds issued in the U.S. have fixed interest rates and pay interest every six months.

    Investors can sell their bonds to other investors at any time. But if interest rates in the market have changed, the market value of the bonds will move in the opposite direction. Last year, when interest rates rose, the value of bonds declined, so that their yields would match the interest rates of newly issued bonds of the same credit quality.

    It was difficult to watch bond values decline last year, but investors who didn’t sell their bonds continued to receive their interest. The same could be said for stocks. The benchmark S&P 500
    SPX,
    -0.20%
    fell 19.4% during 2022, with 72% of its stocks declining. But few companies cut dividends, just as few companies defaulted on their bond payments.

    One retired couple that I know saw their income-oriented brokerage account value decline by about 20% last year, but their investment income increased — not only did the dividend income continue to flow, they were able to invest a bit more because their income exceeded their expenses. They “bought more income.”

    The longer the maturity of a bond, the greater its price volatility. Depending on the economic environment, you might find that a shorter-term bond portfolio offers a “sweet spot” factoring in price volatility and income.

    And here’s a silver lining — if you are thinking of switching your portfolio to an income orientation now, the decline in bond prices means yields are much more attractive than they were a year ago. The same can be said for many stocks’ dividend yields.

    Downside protection

    What lies ahead for interest rates? With the Federal Reserve continuing its efforts to fight inflation, interest rates may continue to rise through 2023. This can put more pressure on bond and stock prices.

    Ken Roberts, an investment adviser with Four Star Wealth Management in Reno, Nev., emphasizes the “downside protection” provided by dividend income in his discussions with clients.

    “Diversification is the best risk-management tool there is,” he said during an interview. He also advised novice investors — even those seeking income rather than growth — to consider total returns, which combine the income and price appreciation over the long term.

    An ETF that holds bonds is designed to provide income in a steady stream. Some pay dividends quarterly and some pay monthly. An ETF that holds dividend-paying stocks is also an income vehicle; it may pay dividends that are lower than bond-fund payouts and it will also take greater risk of stock-market price fluctuation. But investors taking this approach are hoping for higher total returns over the long term as the stock market rises.

    “With an ETF, your funds are diversified. And when the market goes through periods of volatility, you continue to enjoy the income, even if your principal balance declines temporarily,” Roberts said.

    If you sell your investments into a declining market, you know you will lose money — that is, you will sell for less than your investments were worth previously. If you are enjoying a stream of income from your portfolio, it might be easier for you to wait through a down market. If we look back over the past 20 calendar years — arbitrary periods — the S&P 500 increased during 15 of those years. But its average annual price increase was 9.1% and its average annual total return, with dividends reinvested, was 9.8%, according to FactSet.

    Also see: When can I sell my I-bonds? Are I-bonds taxed? Answers to your questions about Series I bonds.

    In any given year, there can be tremendous price swings. For example, during 2020, the early phase of the Covid-19 pandemic pushed the S&P 500 down 31% through March 23, but the index ended the year with a 16% gain.

    Two ETFs with broad approaches to dividend stocks

    Invesco Head of Factor and Core Strategies Nick Kalivas believes investors should “explore higher-yielding stocks as a way to generate income and hedge against inflation.”

    He cautioned during an interview that selecting a stock based only on a high dividend yield could place an investor in “a dividend trap.” That is, a high yield might indicate that professional investors in the stock market believe a company might be forced to cut its dividend. The stock price has probably already declined, to send the dividend yield down further. And if the company cuts the dividend, the shares will probably fall even further.

    Here are two ways Invesco filters broad groups of stocks to those with higher yields and some degree of safety:

    • The Invesco S&P 500 High Dividend Low Volatility ETF
      SPHD,
      -0.33%
      holds shares of 50 companies with high dividend yields that have also shown low price volatility over the previous 12 months. The portfolio is weighted toward the highest-yielding stocks that meet the criteria, with limits on exposure to individual stocks or sectors. It is reconstituted twice a year in January and July. Its 30-day SEC yield is 4.92%.

    • The Invesco High Yield Equity Dividend Achievers ETF
      PEY,
      -0.70%
      follows a different screening approach for quality. It begins with the components of the Nasdaq Composite Index
      COMP,
      +1.39%      ,
      then narrows the list to 50 companies that have raised dividend payouts for at least 10 consecutive years, whose stocks have the highest dividend yields. It excludes real-estate investment trusts and is weighted toward higher-yielding stocks meeting the criteria. Its 30-day yield is 4.08%.

    The 30-day yields give you an idea of how much income to expect. Both of these ETFs pay monthly. Now see how they performed in 2022, compared with the S&P 500 and the Nasdaq, all with dividends reinvested:


    Both ETFs had positive returns during 2022, when rising interest rates pressured the broad indexes.

    8 more ETFs for income (and some for growth too)

    A mutual fund is a pooling of many investors’ money to pursue a particular goal or set of goals. You can buy or sell shares of most mutual funds once a day, at the market close. An ETF can be bought or sold at any time during stock-market trading hours. ETFs can have lower expenses than mutual funds, especially ETFs that are passively managed to track indexes.

    You should learn about the expenses before making a purchase. If you are working with an investment adviser, ask about fees — depending on the relationship between the adviser and a fund manager, you might get a discount on combined fees. You should also discuss volatility risk with your adviser, to establish a comfort level and to try to match your income investment choices to your risk tolerance.

    Here are eight more ETFs designed to provide income or a combination of income and growth:

    Company

    		 Ticker

    		 30-day SEC yield

    		 Concentration

    		 2022 total return
    iShares iBoxx $ Investment Grade Corporate Bond ETF

    		 LQD,
    -0.36%         		4.98%

    		 Corporate bonds with investment-grade ratings.

    		 -17.9%
    iShares iBoxx $ High Yield Corporate Bond ETF

    		 HYG,
    -0.34%         		7.96%

    		 Corporate bonds with lower credit ratings.

    		 -11.0%
    iShares 0-5 Year High Yield Corporate Bond ETF

    		 SHYG,
    -0.26%         		8.02%

    		 Similar to HYG but with shorter maturities for lower price volatility.

    		 -4.7%
    SPDR Nuveen Municipal Bond ETF

    		 MBND,
    +0.04%         		2.94%

    		 Investment-grade municipal bonds for income exempt from federal taxes.

    		 -8.6%
    GraniteShares HIPS US High Income ETF

    		 HIPS,
    +0.82%         		9.08%

    		 An aggressive equity income approach that includes REITs, business development companies and pipeline partnerships.

    		 -13.5%
    JPMorgan Equity Premium Income ETF

    		 JEPI,
    -0.25%         		11.77%

    		 A covered-call strategy with equity-linked notes for extra income.

    		 -3.5%
    Amplify CWP Enhanced Dividend Income ETF

    		 DIVO,
    -0.55%         		1.82%

    		 Bue chip dividend stocks with some covered-call writing to enhance income.

    		 -1.5%
    First Trust Institutional Preferred Securities & Income ETF

    		 FPEI,
    +0.05%         		5.62%

    		 Preferred stocks, mainly in the financial sector

    		 -8.2%
    Sources: Issuer websites (for 30-day yields), FactSet

    Click the tickers for more about each ETF.

    Read: Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Definitions

    The following definitions can help you gain a better understanding of how the ETFs listed above work:

    30-day SEC yield — A standardized calculation that factors in a fund’s income and expenses. For most funds, this yield gives a good indication of how much income a new investor can be expected to receive on an annualized basis. But the 30-day yields don’t always tell the whole story. For example, a covered-call ETF with a low 30-day yield may be making regular dividend distributions (quarterly or monthly) that are considerably higher, since the 30-day yield can exclude covered-call option income. See the issuer’s website for more information about any ETF that may be of interest.

    Taxable-equivalent yield — A taxable yield that would compare with interest earned from municipal bonds that are exempt from federal income taxes. Leaving state or local income taxes aside, you can calculate the taxable-equivalent yield by dividing your tax exempt yield by 1 less your highest graduated federal income tax bracket.

    Bond ratings — Grades for credit risk, as determined by ratings agencies. Bonds are generally considered Investment-grade if they are rated BBB- or higher by Standard & Poor’s and Fitch, and Baa3 or higher by Moody’s. Fidelity breaks down the credit agencies’ ratings hierarchy. Bonds with below-investment-grade ratings have higher risk of default and higher interest rates than investment-grade bonds. They are known as high-yield or “junk” bonds.

    Call option — A contract that allows an investor to buy a security at a particular price (called the strike price) until the option expires. A put option is the opposite, allowing the purchaser to sell a security at a specified price until the option expires.

    Covered call option — A call option an investor writes when they already own a security. The strategy is used by stock investors to increase income and provide some downside protection.

    Preferred stock — A stock issued with a stated dividend yield. This type of stock has preference in the event a company is liquidated. Unlike common shareholders, preferred shareholders don’t have voting rights.

    These articles dig deeper into the types of securities mentioned above and related definitions:

    Don’t miss: These 15 Dividend Aristocrat stocks have been the best income builders

    [ad_2]

    Source link

  • Day of reckoning for Macron on French pension reform

    Day of reckoning for Macron on French pension reform

    [ad_1]

    Press play to listen to this article

    Voiced by artificial intelligence.

    PARIS — France is bracing for a day of severe disruptions and strikes on Thursday as trade unions and opposition parties vow to force the government to abandon French President Emmanuel Macron’s flagship pensions reform.

    Schools, universities and public administrations are expected to close, public transport will be severely affected and demonstrations are planned in major cities across the country.  

    “It’s going to be a [day] of hassles… It’ll be a Thursday of great disruption of public services,” warned Transport Minister Clément Beaune.

    Workers are protesting the government’s decision to raise the legal retirement age to 64 from 62. As part of the proposed overhaul, the number of years of contributions needed for a full pension will also rise faster than previously planned and will be set at 43 years from 2027.

    This is one of the biggest tests for Macron since losing outright majority in parliament in June. Macron was reelected last year on promises he would reform France’s public pension system and bring it in line with European neighbors such as Spain and Germany where the legal age of retirement is 65 to 67 years old. According to projections from France’s Council of Pensions Planning, the finances of the pensions system are balanced in the short term but will go into deficit in the long term.

    “Whatever pension projection you look at, the system will be go into the red within 15 years… it is difficult to deny the funding issues … The level of expenditure has stabilized but it’s simply higher than the revenues,” said Antoine Bozio, director of the Institute of Public Policy in Paris.  

    French polls suggest that the French are opposed to the reform but are aware of the need to overhaul state pensions. There is, however, deep disagreement on how to achieve that. Both the far-right National Rally party and the leftwing NUPES coalition staunchly oppose pushing back the age of retirement to 64 and argue that it will unfairly hit French working classes. Both groups vow to fight the government and stall debates as the pensions bill goes through parliament.

    “The Macron-Borne reform is a serious step back for French welfare,” tweeted Jean-Luc Mélenchon, leader of the far-left France unbowed party — which is planning a second day of protests on Sunday.

    Macron is hoping to get the votes of the conservative Les Républicains to get the reforms passed in parliament, where he does not have absolute majority.

    In the battle to win over public opinion, French Prime Minister Elisabeth Borne, who unveiled the reform last week, has repeatedly maintained that the changes include several measures that benefit the poorest. The government plans to increase the minimum monthly pension by close to 10 percent to €1,200 for low-income earners, and vows to improve access to early retirement schemes for employees who work in difficult professions.

    According to Bozio, while the government’s aim is primarily to balance the books amid increased funding needs for health, education and support for businesses, there are legitimate questions over the fairness of the reform.

    “Pushing back the retirement age will not hit the poorest in France, so in that sense the reform is fair,” said Bozio referring to precarious workers who have checkered careers and often leave the workforce later at 67 years old.

    In the battle to win over public opinion, French Prime Minister Elisabeth Borne has repeatedly maintained that the changes include several measures that benefit the poorest | Pool photo by bertrand Guay/AFP via Getty Images

    However, lower-income groups, who start work early, will be disadvantaged compared to higher-income groups who have later careers.

    “Those hit by the reform will be qualified factory workers, less qualified office workers … Senior managers, the intellectual classes who have done long studies, will be less affected,” he said.

    There were other options on the table. In 2020, Macron’s government worked on a more balanced reform, which had the backing of one of France’s main trade unions the CFDT, but was forced to shelve it following months of strikes along with the COVID-19 pandemic which brought the country to a halt.

    France has a long history of showdowns between government-led pension reforms and the public backlash on the street in the form of mass protests and walking off the job. In his second term, Macron has settled for a less aggressive, more topical reform focused on raising the legal age of retirement in the hope that it would be easier to pass through parliament. The breadth of Thursday’s protests will be a first test of that choice.

    [ad_2]

    Clea Caulcutt

    Source link

  • The Year of Inflation Exposes Dogma and Class Bias

    The Year of Inflation Exposes Dogma and Class Bias

    [ad_1]

    • Opinion by Anis Chowdhury (sydney)
    • Inter Press Service

    SYDNEY, Jan 17 (IPS) – Inflation worries topped Ipsos’s What Worries the World survey in 2022 overtaking COVID concerns. The return of inflation caught major central banks, e.g., the US Federal Reserve (Fed), Bank of England, European Central Bank “off guard”. The persistence of inflation also surprised the International Monetary Fund (IMF). The return of inflation and its persistence exposed the poverty of the economics profession, unable to agree on its causes and required policy responses. It also exposed the profession’s anti-working class biases.

    Anis Chowdhury

    Inflation goof

    Almost all major central banks as well as the IMF dismally failed to see the coming of inflation. In December 2020, the US Fed forecast that prices would rise by less than 2% in 2021 and 2022. It failed spectacularly when in December 2021, it estimated that inflation in 2022 would be just 2.6% even though prices were already rising by more than 5% a year.

    The US Fed was not alone in failing to see inflation coming. The Governor of Australia’s central bank – the Reserve Bank of Australia (RBA) – was so confident of low inflation that he declared in March 2021 that the interest rate would remain at a historic low until at least 2024. Inflation in advanced economies during 2021 exceeded the average of forecasters’ expectations by around 5–8 percentage points. The IMF’s forecasts have badly and repeatedly undershot inflation.

    There was a widespread view among most central bankers and leading economists that the price increases (or inflation) that began in mid-2021 were temporary, and price increases would slow or inflation would drift downwards in 2022. Some, of course, insisted otherwise, and wanted immediate anti-inflationary measures. Thus, policy confusion ruled.

    Inflation phobia and dogma

    Soon inflation phobia overtook and central banks were advised to act decisively with interest rate hikes even if it meant slowing the economy or a rise in unemployment. Exaggerated claims were made without evidence that not acting now would be more costly later.

    References to rare episodes of hyperinflation were made to justify tough policy stances.

    The dogmatic inflation hawks ignored the fact that, in most cases, inflation does not accelerate to become harmful hyperinflation, but remains moderate. They also ignored their own neo-classical macroeconomic model, which suggests small welfare loss from moderate inflation.

    Notwithstanding the IMF’s Article IV preamble which provides that economic policies should aim to foster “orderly economic growth with reasonable price stability, with due regard to circumstances”, a one-size-fits-all policy of steep interest rate hikes became the only medicine to be applied to achieve a universal inflation target of 2%, a figure plucked from thin air. Yet, central bankers and mainstream economists boast their credibility!

    Inflation excuse for class war

    Inflation is primarily an expression and outcome of conflicting claims over the distribution of national output and income, e.g., firms’ profit mark-ups vis-à-vis workers’ wages. Thus, no sooner inflation spiked early in the year due to slow adjustment of COVID-induced supply shortages to pent-up demand, exacerbated by war and sanctions, leading central bankers and mainstream economists found an excuse to weaponise economic policies against the working class.

    Stoking the fear of wage-price spirals, they advocate the use of an interest rate sledgehammer to create unemployment and, in turn, discipline labour. This is despite research within the IMF and the Reserve Bank of Australia which found no evidence of wage-price spirals since the 1980s due to declines in labour’s bargaining power. Thus, Bloomberg headlined, “Fattest Profits Since 1950 Debunk Wage-Inflation Story of CEOs”.

    Research conducted by the IMF also found increases in firms’ or corporations’ market power, resulting in higher prices and profit margins. Yet, the IMF does not think such factors “are contributing in any sizeable way to the current inflationary environment”. Instead, it justifies such fattening of profits on the ground that “they provide flexible buffers between general wage and general price increases” and that it is only a catching-up “after taking a hit in 2020”!

    But no such compassion is extended to the working people who have lost their lives and livelihoods. The calls for “front-loaded interest rate hikes simply got louder. The Bank for International Settlements (BIS) warned, “With the prospect of higher wages as workers look to make up for the purchasing power they lost, inflation could be high for long”.

    Labour a clear loser

    Labour is a clear loser. Labour’s income share in the GDP has been in decline since the early 1970s. Casualisation, off-shoring, anti-union legislation and technological progress have greatly reduced labour’s bargaining power, while privatisation and dilution of anti-monopoly legislation hugely strengthened corporate power and their collusive anti-competitive behaviour. Meanwhile, CEO compensation packages swelled to obnoxious levels, rising 940% since 1978 in the US as opposed to a 12% rise for workers during that period. Profiting from the pandemic, CEO pay increased by 16% in 2020 when workers suffered, and to a record level in 2021.

    Leading central bankers and mainstream economists conveniently created a dogma around a 2% inflation target to justify their anti-labour stance. The 2% inflation target has become a global norm akin to the law of gravity, even though it has no theoretical or empirical basis. The law of gravity differs depending on altitude, but the 2% target is said to be universal regardless of circumstances!

    Collateral damage

    Meanwhile, the advanced countries’ inflation fight is causing adverse spillover into developing countries. Higher interest rates have slowed the world economy, and triggered capital outflows from developing countries, thereby depreciating their currencies and lowering their export earnings.

    Together, these are causing devastating debt crises in many developing countries, similar to what happened in the 1980s. The rating agency S&P estimates that central bank rate rises could land global borrowers with US$8.6t in extra debt servicing costs in the coming years.

    Instead of providing genuine debt-relief, the G20 kicked the can down the road. As wealthy nations failed the poor countries during the pandemic, the IMF is moving to debt-distressed countries with conditionality-laden one-size-fits-all austerity packages. Thus, a Foreign Policy op-ed asked, “The International Monetary Fund: Holy Grail or Poisoned Chalice?”

    Meanwhile, the chiefs of the World Bank and the BIS urged “supply-side” policies professed to increase labour force participation and investment. These are code words for further labour market deregulation, privatisation and liberalisation.

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • Bitcoin Is The Solution To The World’s Economic Inequality Problem

    Bitcoin Is The Solution To The World’s Economic Inequality Problem

    [ad_1]

    This is an opinion editorial by Haider Rafique, the global chief marketing officer for cryptocurrency exchange OKX.

    As we reflect back on a wild and woeful year in the markets, it is easy to overlook the fact that we are living through the next great technological revolution. Anyone doubting this need only take ChatGPT for a spin and imagine how artificial intelligence will change society in the years to come. Market cycles come and go, but the innovations being built today bring lasting potential for revolutionizing how we go about our lives in the future.

    [ad_2]

    Haider Rafique

    Source link

  • To Becomes Bitcoin’s Go-To Platform, Nostr Will Have To Solve Its Key Management Issues

    To Becomes Bitcoin’s Go-To Platform, Nostr Will Have To Solve Its Key Management Issues

    [ad_1]

    This is an opinion editorial by Shinobi, a self-taught educator in the Bitcoin space and tech-oriented Bitcoin podcast host.

    I suggest, before reading this, that you read the prior article I wrote explaining what Nostr is and how it works at a high level. You should then have a good idea of the core design of the system at that point, so now let’s take a look at likely problems that are going to occur as it grows in adoption. With the platform becoming a popular one for the Bitcoin community, these problems are ones to be aware of.

    [ad_2]

    Shinobi

    Source link

  • Demography Doesn’t Care

    Demography Doesn’t Care

    [ad_1]

    The median ages of populations are expected to continue rising over the coming decades. East Nanjing Road, Shanghai, China. Credit: Shutterstock.
    • Opinion by Joseph Chamie (portland, usa)
    • Inter Press Service

    PORTLAND, USA, Jan 16 (IPS) – Demography doesn’t care about such things as national strikes over pension retirement ages, public protests about contraception and abortion rights, sexual orientation, habits and preferences, political ideology and party affiliation, dress codes and head coverings, and religious identity, beliefs and practices.

    Demography is basically about the mathematics of human populations, i.e., births, deaths, migrations, ageing, morbidity, sex ratios, mobility, size, change, growth, distribution, density, structure, composition, life expectancies, biological, social and economic characteristics, etc.

    Demography is relatively straightforward, visible and equitable. For example, in every human population a person is born an infant at age zero, ages one year every twelve months, and eventually over time faces death, too often earlier rather than later unfortunately.

    Between birth and death, a wide variety of demographic phenomena or transitions typically occur in human populations. Among them are surviving infancy and childhood, passing through puberty, finding a mate, having offspring, migrating to another place, falling ill or becoming disabled, and experiencing ageing.

    Over the many centuries of human history, the interactions of those various demographic phenomena and transitions have resulted in today’s world population of 8,000,000,000. That extraordinary number of human beings now inhabiting planet Earth is due in large part to the record-breaking rapid growth of world population during the 20th century.

    World population reached the one billion milestone at the start of the 19th century in 1804. The 20th century then ushered in what turned out to be the century of rapid demographic growth. World population nearly quadrupled from 1.6 billion at the start of the 20th century to 6.1 billion by the century’s close (Figure 1).

    Source: United Nations.

    In addition to that unprecedented rapid demographic growth, the world’s annual rate of population growth peaked at 2.3 percent in 1963. Also, by 1990 the world’s annual population increase reached a record high of 93 million.

    The unprecedented growth of world population that took place during the 20th century was simply the result of births greatly outnumbering deaths with mortality rates dropping rapidly, especially during the second half of the past century.

    The world’s fertility rate in the 1960s, for example, was about five births per woman and births outnumbered deaths by nearly three to one in the 1980s. Life expectancy at birth increased dramatically, increasing from about 45 years in the middle of the 20th century to about 65 years by the end of the century.

    The current demographic situation for the world is different from the exceptional rates, levels and changes of the past century. For example, the growth rate of world population in 2021 was about 0.8 percent, or nearly one-third the peak level in 1963.

    In addition, the annual increase of world population in 2021 was about 68 million, or about three-fourths the level in 1990. Also, the median age of the world’s population, which was about 20 years in 1970, has increased by 50 percent, reaching 30 years in 2022.

    The world’s fertility rate is now about 2.3 births per woman, or about half the level 60 years ago. In addition, approximately 100 countries have a total fertility rate below the replacement level of 2.1 births per woman.

    Furthermore, the fertility rates of some thirty countries in 2021 were less than 1.5 births per woman. Several of those countries had fertility rates that were approximately half or less than the replacement level, including China at 1.16, Singapore at 1.12 and South Korea at 0.81 (Chart 1).

    Source: United Nations.

    As a result of below replacement fertility rates, the current populations of some 60 countries are expected to be smaller by 2070. The total population decline of those countries over the next 50 years is projected to be more than a half a billion. Among the countries with the largest declines in their populations are China (-340 million), Japan (-35 million), Russia (-22 million), South Korea (-16 million) and Italy (-15 million).

    In addition, many countries are expected to experience substantial declines in the relative size of their populations. Many of those countries are projected to have population declines of 10 percent or more over the coming four decades. For example, the relative decline in population size is expected to be 22 percent for Japan, 21 percent for South Korea and 18 percent for Italy (Figure 2).

    Source: United Nations.

    At the other extreme, the populations of two dozen countries, accounting for nearly 10 percent of the world’s population, are expected to more than double by 2060. Those projected population increases by 2060 include 106 percent in Afghanistan, 109 percent in Sudan, 113 percent in Uganda, 136 percent in Tanzania, 142 percent in Angola, 147 percent in Somalia, 167 percent in the Democratic Republic of the Congo, and 227 percent in Niger (Figure 3).

    Source: United Nations.

    In addition to the projected decline and growth of national populations, the age structures of countries worldwide are expected to become substantially older. Many countries have attained median ages in 2020 above 40 years, such as France at 41 years, South Korea at 43 years, Italy at 46 years and Japan at 48 years.

    The median ages of populations are expected to continue rising over the coming decades. The median age for the world, for example, is expected to increase from 30 years today to close to 40 years by 2070. In some countries, including China, Italy, Japan and South Korea, the median ages of their populations by 2070 are projected to be 55 years or older.

    Demographic ageing in the 21st century constitutes a major challenge for societies and economies. The consequences of the demographic realities of older population age structures and increasing human longevity are likely unavoidable.

    In particular, the ageing of populations is contributing to strains on fiscal revenues and spending on pensions and healthcare for the elderly. Despite the ageing of populations and increases in human longevity, official retirement ages for government pension benefits have remained largely unchanged at comparatively low ages.

    In France, for example, the official pension retirement age is 62 years, which is well below the retirement ages of many other developed countries. Despite criticisms, protests and a scheduled national strike from worker unions and leftist opponents, the French government has unveiled a pension overhaul that proposes gradually raise the retirement age to 64 years by 2030.

    Also, a mounting crisis for a growing number of countries worldwide is illegal immigration. Neither governments nor international agencies have been able to come up with sensible policies and effective programs to address the mounting illegal immigration crisis.

    A major factor behind the rise of illegal immigration is the large and growing supply of men, women and children in sending countries who want to migrate to another country and by any means possible, including illegal immigration. The number of people in the world wanting to migrate to another country is estimated at nearly 1.2 billion.

    In conclusion, too often many choose to ignore, deny or dismiss today’s demographic realities, such as population growth and decline, demographic aging, declining fertility, rising life expectancy and increasing illegal immigration.

    Rather than acknowledging, addressing and adjusting to the challenging consequences of the demographic realities of the 21st century, many are turning to protests, strikes, demonstrations, and balderdash. Demography, however, simply doesn’t care about such things.

    Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division and author of numerous publications on population issues, including his recent book, “Births, Deaths, Migrations and Other Important Population Matters.”

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • African Journalists: More Training & Resources will Boost Climate Change Coverage

    African Journalists: More Training & Resources will Boost Climate Change Coverage

    [ad_1]

    Environment reporting is expenseiv; it needs a lot of traveling and risk-taking. Journalists reporting at COP27 in Sharm El Sheikh, Egypt, last year. Credit: Africa Renewal
    • Opinion by Kingsley Ighobor (united nations)
    • Inter Press Service

    UNITED NATIONS, Jan 16 (IPS) – At the end of a five-minute newscast from a makeshift studio in Sharm El Sheikh, Egypt, the venue of COP27, Cotonou-based journalist Ghyslaine Florida Zossoungbo was able to provide real-time information to her compatriots back home in the Republic of Benin.

    Zossoungbo reports for Benin ODD Television, an online platform dedicated to promoting Sustainable Development Goals (SDGs) in her country.

    On this day, she had found a small corner in one of the pavilions at COP27 sat on a high stool behind a laptop while a camera perched on a tripod a few feet away.

    At the conference, Zossoungbo and other journalists, even those from big established media institutions such as CNN or bloggers clutching an iPhone but with a large social media following, ran briskly after celebrities and world leaders or just about anyone who had anything significant to say about climate change.

    And at the end of each day, they immediately churned out climate change content to audiences globally.

    Kingsley Ighobor

    Yet, despite Zossoungbo’s best effort to report on the climate crisis, buoyed by new public information technology, she says climate change reporting in her country—perhaps also in rest of Africa— is fraught with challenges.

    “We are the only media institution that regularly reports on the climate crisis because we are focused on SDGs,” Zossoungbo says. “Other media concentrate on politics and other issues.”

    She adds: “People can see that there is something happening to the weather because of the floods and drought, but they don’t yet understand what it is in its full context. So we keep talking and talking about it.”

    In Cameroon, explains Killian Chimton Ngala, a journalist with multiple accreditations, “Climate change doesn’t often make the front pages of newspapers or lead in television or radio news.”

    Reporting context

    Ngala’s experience is that “Climate reporting often lacks context. When journalists report on flooding, for example, they don’t necessarily link it to climate change. They usually focus on the event and the impact.”

    Without a perspective, climate change reporting becomes a complex concept for many, particularly the grassroots population.

    Ngala provides an example of such reporting: “Not long ago, fighting broke out in communities in Cameroon’s far North Region, between Choa-Arab cattle herders and Mousgoum farmers, over dwindling water resources.

    Many people died in the conflict, and a top government official decided to visit the area.

    “Do you know how journalists reported the story?” Ngala asks rhetorically. “They all reported that the minister had admonished the communities and asked them to be peaceful.

    “Yet, when you look at it, why were the communities fighting? It’s because the village stream was drying up, and community dwellers and cattle herders had to fight for the limited water, a consequence of changing weather patterns.

    “If you ask many people in Africa why their lake is drying up or why they are experiencing frequent droughts, some will not even know, let alone advocate for solutions.

    “Take the drying up of Lake Chad, which is forcing herders in northern Nigeria and Cameroon to migrate down south. The farmers in the south believe the herders are coming to take over their lands. The resulting fight has claimed many lives,” he laments.

    Why then is the media not robustly telling the climate story as it should be?

    Need for training

    Ngala blames it on lack of resources and training.

    “Environment reporting is expensive; it needs a lot of traveling and risk-taking. It does not come cheap. Many media organisations in Africa find it unaffordable. For instance, they cannot afford to spend thousands of dollars to sponsor reporters to cover COP27,” says Ngala.

    There are very few trained environment reporters in newsrooms, he says. As a result, climate change reporting does not yet receive the attention it deserves.

    “Media managers would rather send reporters to cover politics, which drive sales, than to report on issues related to the environment, unless it is a major disaster. They would rather send reporters to cover our President’s trip to Addis Ababa than to COP27,” she says.

    External sponsors

    Ngala was one of several African journalists sponsored to cover COP27 by climate-focused organisations particularly in Europe and North America.

    For example, the Climate Change Media Partnership (CCMP) fellowship programme, an Earth Journalism Network (EJN) project managed by Internews and the Stanley Center for Peace and Security, brought Ngala and five other African journalists to Sharm El Sheikh to cover COP27.

    They were among 20 journalists (out of over 500 who applied) from low and middle-income countries sponsored under the fellowship.

    The fellowship package comes with training on “quality reporting on developments at COP27,” according to an EJN announcement, adding that Africa accounts for 2-3 per cent of global emissions but bears the brunt of the climate crisis. Therefore, African journalists must continue to report on the impact of the crisis and hold governments accountable.

    “It was a rigorous application process,” says Evelyn Kpadeh Seagbeh of the Liberia-based Power FM and Television, also a fellow.

    “But for the fellowship, I would not be here . I applied for the fellowship because coming here for two weeks would have cost thousands of dollars, which my organization may not afford.”

    Climate content

    The symbiotic relationship between media content producers and content consumers is complex.

    The perceived interest of the audience may influence content production even as the agenda-setting role of the media involves guiding audiences to focus on particular issues.

    It leads to the point that African journalists have not yet effectively linked climate change issues to citizens’ socioeconomic well-being.

    “That’s the point,” retorts Ngala. “Journalists report on the environment in isolation of other economic development sectors. You can see why, in many countries, the economic affairs ministries do not consider the climate crisis a part of their portfolio. It is often the preserve of underfunded environment ministries.”

    “There is a lack of appreciation of the seriousness of the climate crisis,” explains Mwika Bennet Simbeye, acting Managing Editor of the Times of Zambia.

    “Journalists tend to instinctively focus on day-to-day problems—all the political drama and bread and butter issues,” says Simbeye.

    Agreeing that training and increased financing resources will boost climate reporting, Paul Omorogbe, the Chief Correspondent of the Tribune of Nigeria, is optimistic.

    “I believe the situation is gradually changing. In Nigeria, climate crisis reporting is slowly but steadily gaining prominence in the media. We are getting there.”

    Source: Africa Renewal, United Nations

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • With Confident Ignorance Of Bitcoin, So-Called ‘Experts’ Sacrifice Their Credibility

    With Confident Ignorance Of Bitcoin, So-Called ‘Experts’ Sacrifice Their Credibility

    [ad_1]

    This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transitioning to the Finance Corps.

    Barely a week into 2023, and I’ve seen Anthony “Pomp” Pompliano debate Michael Shellenberger and Joe Rogan interview Peter Ziehan. While these media impressions may seem unrelated, a common thread is sewn between the two: experts in different fields confidently professing uninformed opinions on Bitcoin.

    Ziehan’s misunderstandings can be heard in the last 20 minutes or so of the interview. In fact, our friend Guy Swann just made a nearly 90-minute long episode of “Bitcoin Audible” dedicated to tearing Ziehand’s analysis apart. Café Bitcoin did the same recently in the first half or so of its January 9, 2023 episode.

    [ad_2]

    Mickey Koss

    Source link

  • How I Introduced My Younger Sister To Bitcoin

    How I Introduced My Younger Sister To Bitcoin

    [ad_1]

    This is an opinion editorial by Santiago Varela, a bitcoin miner and writer from Mexico City.

    My sister turned 18 years old in the beginning of 2023 and I gave her a very unusual gift during this holiday season. Because I love her, I truly believe that the best gift I can give her is the orange pill.

    It all started with a letter that I wrote for her explaining the gift I was about to give her. Then, I handed her a copy of “The Bitcoin Standard” by Saifedean Ammous and a hardware wallet. However, that was just the beginning of a long process that we had to go through together if I really wanted to orange pill her.

    [ad_2]

    Santiago Varela

    Source link

  • More Austerity in 2023 Will Fuel Protests

    More Austerity in 2023 Will Fuel Protests

    [ad_1]

    Anti-Austerity protests in 2006-2020. Credit: World Protests Platform
    • Opinion by Isabel Ortiz, Sara Burke (new york)
    • Inter Press Service

    NEW YORK, Jan 13 (IPS) – This week world leaders meet in Davos to discuss cooperation to address multiple crises, from COVID-19 and escalating inflation to slowing economic growth, debt distress and climate shocks.

    Only three months earlier, finance ministers had gathered in Washington DC for the same reason. The mood was grim. The need for ambitious actions could not be greater; however, there were no agreements, evidencing the fragility of multilateralism and international cooperation.

    Isabel Ortiz

    Worse, policy makers -advised by the International Monetary Fund- are resorting to old, failed and regressive policies, such as austerity (now called “fiscal restraint” or “fiscal consolidation”), instead of much needed corporate/wealth taxation and debt reduction initiatives, to ensure an equitable recovery for all.

    A recent global report alerts of the dangers of a post-pandemic wave of austerity, far more premature and severe than the one that followed the global financial crisis a decade ago. While governments started cutting public expenditures in 2021, a tsunami of budget cuts is expected in 143 countries in 2023, which will impact more than 6.7 billion people or 85% of the world population.

    Analysis of the austerity measures considered or already implemented by governments worldwide shows their significant negative impacts on people, harming women in particular. These austerity policies are:

    • targeting social protection, excluding vulnerable populations in need of support by cutting programs for families, the elderly and persons with disabilities (in 120 countries);
    • cutting or capping the public sector wage bill, this is, reducing the number and salaries of civil servants, including frontline workers like teachers and health workers (in 91 countries);
    • eliminating subsidies (in 80 countries);
    • privatizing public services or reforming state-owned enterprises (SOEs) in areas such as public transport, energy, water;
    • reforming hard-earned pensions by adjusting benefits and parameters, resulting in lower incomes for retirees (in 74 countries);
    • (6) labor flexibilization reforms (in 60 countries);
    • reducing employers’ social security contributions, making social security unsustainable (in 47 countries);
    • and even cutting health expenditures despite COVID-19 is not over.
    Sara Burke

    Austerity and all the human suffering it causes is evitable, there are alternatives. There are at least nine financing options, available even in the poorest countries, fully endorsed by the UN and international financial institutions, from increasing progressive taxation to reducing debt. Policymakers must urgently look into these. Many countries have already implemented them.

    In recent years, citizens have protested austerity all around the world. A recent study on world protests shows that nearly 1,500 protests in the period 2006-2020 were against austerity. Citizens demand better public services, social protection, jobs with decent wages, tax and fiscal justice, equitable land distribution, and better living standards, among others. Protests against pension reforms, and high food and energy prices have also been very prevalent. Recently, the jobs and cost-of-living crises have been accentuated by the COVID-19 pandemic, resulting in more protests despite lockdowns.

    The majority of global protests against austerity and for economic justice have manifested people’s indignation at gross inequalities. The idea of the “1% versus the 99%,” that emerged a decade ago during protests over the 2008 financial crisis, has spread around the world, feeding grievances against elites and corporations manipulating public policies in their favor, while the majority of citizens continue to endure low living standards, aggravated by austerity cuts.

    Let’s remember that trillions of dollars have been used to support corporations during the pandemic and to support military spending. Now people are being asked to endure austerity cuts, at a time when they are suffering a cost-of-living crisis. The 2023 meetings in Davos are being faced with new protests and demands to tax the rich.

    Unless policymakers change course, we shouldn’t be surprised to see increasing waves of protests all over the world. Clashes in the street are likely to intensify if governments continue to fail to respond to people’s demands and persist in implementing harmful austerity policies.

    Governments need to listen to the demands of citizens that are legitimately protesting the denial of social, economic and civil rights. From jobs, public services and social security to tax and climate justice, the majority of protesters’ demands are in full accordance with United Nations proposals and the Universal Declaration of Human Rights. Leaders and policymakers will only generate further unrest if they fail to act on these legitimate demands.

    Isabel Ortiz is Director of the Global Social Justice Program at Joseph Stiglitz’s Initiative for Policy Dialogue at Columbia University, former Director at the International Labour Organization (ILO) and UNICEF.

    Sara Burke is Senior Policy Analyst at Friedrich-Ebert-Stiftung (FES) New York

    IPS UN Bureau


    Follow IPS News UN Bureau on Instagram

    © Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service

    [ad_2]

    Global Issues

    Source link

  • Establishing The Architectural Styles Of Bitcoin

    Establishing The Architectural Styles Of Bitcoin

    [ad_1]

    This is an opinion editorial by Frances Hogan Steffian, a writer, bitcoin investor and wife of an award-winning architect.

    What should be the architectural styles of Bitcoin? In the history of our world, our enduring buildings give stature to our best ideas and enshrine our core beliefs. If Bitcoin realizes its potential to remake the world’s financial system, and as Bitcoin communities spring up around the globe, how should our ideas and ideals about Bitcoin be expressed in these newly-built environments?

    [ad_2]

    Frances Hogan Steffian

    Source link