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World Bank: Inflation, poverty keep climbing in war-torn Myanmar

Voice of America’s immigration news - June 12, 2024 - 16:11
Bangkok — Myanmar’s economy shows no signs of recovering from the 2021 military coup, as civil war drives more workers abroad, pushes inflation into triple digits in some parts of the country and pulls it deeper into poverty, a new World Bank report says. “Livelihoods Under Threat,” launched Wednesday in Myanmar, says the economy shuffled along over the past year with gross domestic product growing at a meager 1%. The same is expected for next year. While staving off recession, slow growth still leaves Myanmar’s once-booming economy 10% smaller than it was before the country’s military ousted the democratically elected government more than three years ago. Resistance groups have made major battlefield gains against the junta since late last year and are believed to control more than half the country, including some key border trade routes. “The overall storyline is that the economy remains weak and fragile overall. Operating conditions for businesses of all sizes and all sectors remain very difficult,” World Bank senior economist Kim Edwards said at the report’s launch. The bank says overall inflation rose some 30% in the year leading up to September 2023, and even more in areas where fighting has been fiercest. “You can see in the conflict-affected states and regions — Kayin, Kachin, Sagaing, northern Shan, Kayah — price rises of 40 to 50%,” Edwards said. “And then in Rakhine, where … there’s been particular problems and increasing conflict recently, we’ve seen price rises of 200% over the year. So, very substantial. And obviously, it has very significant effects for food insecurity,” he said. The United Nations’ World Food Program says food insecurity now plagues a quarter of Myanmar’s 55 million people, especially the more than 3 million displaced by the fighting. In Wednesday’s report, the World Bank also estimates that nearly one-third of the population now lives in poverty. “And we see the depth and severity of poverty. So, this is really a measure of how poor people in poverty actually are — worsening also in 2023, meaning that poverty is more entrenched than at any time in the last six years,” Edwards said. The bank says much of the inflation is being driven by the steady depreciation of the currency, the kyat. While the official exchange rate remains stuck at 2,100 to the U.S. dollar, trading of the kyat on the black market soared past 4,500 to the dollar in May. The junta has imposed several controls to conserve its dwindling foreign currency reserves. Last month, it urged companies doing business abroad to barter with their trade partners and settle bills with their wares instead of cash. At the same time, the bank says border trade — a major source of tax revenue for the regime — is being hit hard by the gains the resistance has been making along Myanmar’s frontiers with China, India and Thailand. It says imports and exports by land fell 50% and 44% respectively, in the past six months. The junta has leaned heavily on oil and gas revenue, but with little investment for exploration of new reserves, those exports are likely to start falling in the coming years, as well, Edwards said. More of what the junta does earn is going to the military at the expense of other basic services. According to the report, defense spending hit 17% of the national budget in the fiscal year that ended in March, nearly twice what was spent on health and education combined. Encouraging news The World Bank says manufacturing and agriculture output in Myanmar have started to pick up, and a combination of cheaper fertilizer and higher crop prices could keep the farming sector growing. Traders stymied by blocked border gates also seem to be shifting some of their traffic to new routes on land and sea. “There are some signs of life,” Edwards said. “And these really speak to the adaptability of many of Myanmar’s businesses and their ability to cope with what, under any objective circumstances, are very difficult business constraints and conditions.” Even so, Edwards said, “The near-term outlook remains quite weak, with the economy failing to recover from its recent, very sharp contraction.” Htwe Htwe Thein, an associate professor at Australia’s Curtin University who has been studying Myanmar’s business and economic development for two decades, said she could not recall a worse time for Myanmar’s economy. “The state of the economy has never been this low in terms of prospects, in terms of … the trajectory,” she told VOA. “The only people who are doing well … is a very, very small percentage at the top who are working with the junta,” she said. “Everybody else is suffering severely.” Amid the fierce inflation, falling wages and dwindling job prospects, Thein said, the young are losing hope and grasping at any opportunity to work or study abroad. She added that the junta’s efforts to shore up the economy have been ad hoc and short-sighted, and that rebuilding will take years and can only be achieved if and when the junta is out of power.

North Koreans face lives devoid of hope, UN rights chief says

Voice of America’s immigration news - June 12, 2024 - 16:00
United Nations — The U.N. high commissioner for human rights delivered a bleak assessment of the situation in North Korea on Wednesday, a decade after an in-depth report shed light on severe and widespread abuses in the country. “Today, the DPRK is a country sealed off from the world,” Volker Türk told a special briefing of the U.N. Security Council that North Korea’s ambassador did not attend. “A stifling, claustrophobic environment, where life is a daily struggle devoid of hope.” DPRK is the abbreviation for North Korea's official name, the Democratic People's Republic of Korea. Türk expressed concern about the regime’s tight control over the movements of its citizens, including the ability to leave the country. Most North Koreans cannot obtain the required government permission to leave, and those who attempt to escape face torture, labor camps or death if they fail. “Leaving your own country is not a crime – on the contrary, it is a human right, recognized by international law,” he said by video from his office in Geneva. He said repression of the freedom of expression has also worsened with the enforcement of laws forbidding people from consuming foreign media or culture, such as South Korean television dramas or K-pop music. “Put simply, people in the DPRK are at risk of death for merely watching or sharing a foreign television series,” the human rights chief said.   He urged Pyongyang to halt the use of the death penalty throughout its legal system and move toward its complete abolition. Perhaps even more worrying, is the situation of food security in North Korea. “Every single person interviewed by my office has mentioned this in one form or another,” Türk said. “In the words of one: “It’s very easy to become fragile and malnourished because there is nothing to eat.” The World Food Program says more than 40% of North Koreans, nearly 11 million people, are undernourished. Many suffer from chronic malnutrition because of a lack of essential nutrients, especially those living outside major cities. Children are particularly affected, with 18% suffering stunting and impaired development because of chronic malnutrition. The high commissioner also expressed concern about Pyongyang’s use of forced labor, including overseas. He noted that workers they have interviewed described often performing work that is physically dangerous and they endured extreme levels of surveillance. Western nations accuse North Korea of using these laborers’ wages to help fund their illicit nuclear weapons and ballistic missile programs. Türk said there have been some recent “positive signs” from North Korea in their engagement with the international human rights system, but he did not explain what that included. Defector speaks Gumhyok Kim, 33, grew up in privilege in North Korea. His family were Kim regime loyalists and so in 2010, he was able to leave the country and study in Beijing. “At the age of 19, I saw a world for the first time that was different from everything I had learned,” he told the council. “In particular, the internet enabled me to learn about my country’s history and realize the horrific truth of North Korea that had been hidden from me.” He said his feeling of loyalty to the Kim family that has ruled North Korea for three generations quickly turned to one of betrayal, and he began to connect with other North Korean students in Beijing to discuss the situation. In the winter of 2011, the North Korean authorities discovered their activities, and he fled China to South Korea to avoid arrest. “I survived and found freedom. But that freedom had come at a great cost,” he said.  “It has already been 12 years since I defected, but I still have no contact with my family.” He appealed directly to North Korean Leader Kim Jong Un, saying nuclear weapons and repression are not the way to maintain leadership. “Allow North Koreans to live in freedom. Allow them their basic rights so they can live full and happy lives,” Kim said. “Turn away from the nuclear weapons threat and return your country to the family of nations so all North Korean people may lead prosperous lives.” Kim and his South Korean-born wife chronicle their married life on YouTube, where they show what life is like in Seoul. He said he is now a father to a 1-year-old, and he hopes one day to take his son to a changed North Korea. Council inaction The U.N. Security Council is divided over the situation in North Korea. The last time its 15 members agreed on sanctions for the regime’s nuclear and ballistic missile activity was in 2017. Since then, the geopolitical landscape has changed, the council has become more fractured, and action on the North Korean file has become more difficult. Both China and Russia objected to Wednesday’s human rights briefing, saying such issues do not belong in the Security Council. Russia called for a procedural vote, but lost, as only China joined it in voting against holding the meeting and 12 council members supported it. Mozambique abstained. There are no vetoes in procedural votes. “The efforts by both Russia and China to block this meeting today is another effort to support the DPRK, and is also emboldening their actions,” U.S. Ambassador Linda Thomas-Greenfield said. Venezuela’s envoy made a statement to reporters outside the council during the meeting on behalf of the “Group of Friends in Defense of Charter of the United Nations,” rejecting the convening of a human rights-specific council meeting. The group of 18 like-minded countries includes Russia, China, North Korea, Belarus, Iran, Cuba and Syria. The council meeting was requested by the United States and Britain, along with Japan and South Korea, who both currently hold non-permanent council seats. “The DPRK nuclear and human rights issues are like two sides of the same coin, and thus, need to be addressed comprehensively,” South Korean Ambassador JoonKook Hwang said. He urged the council to regularly address the human rights situation. Until last August, the last time the council discussed North Korea’s human rights situation also was in 2017. A 2014 Commission of Inquiry report found that North Korea’s rights violations had risen to the level of crimes against humanity. The panel said the regime had used “extermination, murder, enslavement, torture, imprisonment, rape, forced abortions and other sexual violence, persecution on political, religious, racial and gender grounds, the forcible transfer of populations, the enforced disappearance of persons and the inhumane act of knowingly causing prolonged starvation.”

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Voice of America’s immigration news - June 12, 2024 - 16:00
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Kenyan group uses old ATMs to dispense free sanitary pads to students

Voice of America’s immigration news - June 12, 2024 - 15:55
A public-private partnership in Kenya provides female students with free sanitary napkins dispensed from converted ATMs at school. The goal is to provide pads to young women from poor families so they don't miss school because they are menstruating. Victoria Amunga reports from Nairobi, Kenya.

Southern African nations wary as UK’s Labor Party commits to hunting trophy ban

Voice of America’s immigration news - June 12, 2024 - 15:11
Gaborone, Botswana — Some Southern African countries pushing against the United Kingdom’s anti-hunting efforts suffered a blow when the Labor Party, expected to form the next government, committed last week to support a ban on hunting trophy imports. Angola, Botswana, Namibia, South Africa, Zambia and Zimbabwe said in a joint statement that they are disappointed Britain’s Labor Party will attempt to ban hunting trophies. The countries said, however, that unlike the Conservative government, the Labor Party has “at least pledged a full consultation on a policy with significant ramifications for conservation programs in our countries.” Botswana, with the largest elephant herd in the world at more than 130,000, has been at the forefront of a campaign against efforts by the U.K. and other European nations to ban hunting trophies from Africa. Adam Hart, a U.K.-based ecologist and conservation scientist specializing in southern Africa, told VOA he is disappointed with the Labor Party’s move. “It shows that perhaps they have not listened to the sides that have gone in front of the Conservative Party, and they have not listened to the voices of the affected nations,” he said. In its manifesto, the Labor Party says it will put forward a comprehensive plan to end animal cruelty that includes a ban on the import of hunting trophies from abroad. “I think politicians see this as an easy win,” said Hart, who is a professor at the University of Gloucestershire. “It's only when they start getting involved more with the issues that they realize that it is nowhere near as straightforward as they thought.” He said the Labor Party must be honest in its consultation with the affected southern African countries. “We have to give [the Labor Party] the benefit of the doubt and suggest that perhaps the consultation will be genuine,” he said. “Many people when they go into this debate think that they have the answers. They think that it’s a very ... simple issue, that banning hunting trophies will save endangered species. “Of course, once you start digging into the issue, you realize it’s much more complicated than that and that, in fact, it can have the opposite effect.” Countries such as Botswana and Zimbabwe are pursuing alternative markets. Botswana’s permanent secretary in the Ministry of Environment and Tourism, Boatametse Modukanele, said, "We are looking at the Middle East. We are also looking at the United Arab Emirates, as an example. We are looking at those countries because they also have a hunting culture, and they do not have the many restrictions that we have currently.”

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Voice of America’s immigration news - June 12, 2024 - 15:00
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World prepares for G7 summit

Voice of America’s immigration news - June 12, 2024 - 14:35
The wars in Gaza and Ukraine and Western competition with China are, not surprisingly, the biggest topics up for discussion at the upcoming G7 summit in Italy. NATO strikes a deal with Hungary to not stand in the way of support for Ukraine as Kyiv is targeted again. North Korea appears to be strengthening ties with Russia as cross-border tensions with South Korea are on the rise. And pilgrims begin arriving for the Hajj.

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Voice of America’s immigration news - June 12, 2024 - 14:00
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Voice of America’s immigration news - June 12, 2024 - 13:00
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On X, Iran's Khamenei dignifies Raisi's legacy, sparking outrage

Voice of America’s immigration news - June 12, 2024 - 12:30
Throughout decades of his serving among Iran's ruling clique, late President Ebrahim Raisi engaged in mass human rights violations, earning the nickname the "butcher of Tehran."

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Voice of America’s immigration news - June 12, 2024 - 12:00
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Voice of America’s immigration news - June 12, 2024 - 11:00
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US inflation cooled in May in sign that price pressures may be easing 

Voice of America’s immigration news - June 12, 2024 - 10:42
WASHINGTON — Inflation in the United States eased in May for a second straight month, a hopeful sign that a pickup in prices that occurred early this year may have passed. The trend, if it holds, could move the Federal Reserve closer to cutting its benchmark interest rate from its 23-year peak. Consumer prices excluding volatile food and energy costs — the closely watched "core" index — rose 0.2% from April to May, the government said Wednesday. That was down from 0.3% the previous month and was the smallest increase since October. Measured from a year earlier, core prices rose 3.4%, below last month's 3.6% increase. Fed officials are scrutinizing each month's inflation data to assess their progress in their fight against rising prices. Even as overall inflation moderates, such necessities as groceries, rent and health care are much pricier than they were three years ago — a continuing source of public discontent and a political threat to President Joe Biden's re-election bid. Most other measures suggest that the economy is healthy: Unemployment remains low, hiring is robust and consumers are traveling, eating out and spending on entertainment. Overall inflation also slowed last month, with consumer prices unchanged from April to May, in part because of sharp falls in the cost of gasoline, air fares and new cars. Measured from a year earlier, consumer prices rose 3.3%, less than the 3.6% increase a month earlier. The cost of auto insurance, which has soared in recent months, actually dipped from April to May, though it's still up more than 20% from a year earlier. Grocery prices were unchanged last month, after declining slightly in April. They're now up just 1% on a year-over-year basis. The Fed has kept its key rate unchanged for nearly a year after having rapidly raised it in 2022 and 2023 to fight the worst bout of inflation in four decades. Those higher rates have led, in turn, to more expensive mortgages, auto loans, credit cards and other forms of consumer and business borrowing. Though inflation is now far below its peak of 9.1% in mid-2022, it remains above the Fed's target level. Persistently elevated inflation has posed a vexing challenge for the Fed, which raises interest rates — or keeps them high — to try to slow borrowing and spending, cool the economy and ease the pace of price increases. The longer the Fed keeps borrowing costs high, the more it risks weakening the economy too much and causing a recession. Yet if it cuts rates too soon, it risks reigniting inflation. Most of the policymakers have said they think their rate policies are slowing growth and should curb inflation over time. Inflation had fallen steadily in the second half of last year, raising hopes that the Fed could pull off a "soft landing," whereby it manages to conquer inflation through higher interest rates without causing a recession. Such an outcome is difficult and rare. But inflation came in unexpectedly high in the first three months of this year, delaying hoped-for Fed rate cuts and possibly imperiling a soft landing. In early May, Chair Jerome Powell said the central bank needed more confidence that inflation was returning to its target before it would reduce its benchmark rate. Several Fed officials have said in recent weeks that they needed to see several consecutive months of lower inflation. Some signs suggest that inflation will continue to cool in the coming months. Americans, particularly lower-income households, are pulling back on their spending. In response, several major retail and restaurant chains, including Walmart, Target, Walgreen's, McDonald's and Burger King, have responded by announcing price cuts or deals.

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