Economy

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Brazil Mulls Minimum Retirement Age of 65 for Men and Women

Brazil’s government has opened discussions with congressional leaders, state governors and mayors on a pension reform bill that would set the minimum retirement age for men and women at 65, a government official said on Monday.

The proposal is one of several under consideration, as President Jair Bolsonaro looks to get the legislative ball rolling on his ambitious plans to overhaul Brazil’s creaking social security system.

Currently, if workers have contributed into the system for at least 15 years, the earliest men can retire is 65 and for women it is 60. But men can retire at any age if they have paid into the system for at least 35 years, and women if they have contributed for 30 years.

Speaking to reporters outside the Economy Ministry in Brasilia, Rogerio Marinho, secretary of social security and labor at the ministry, confirmed talks were underway on the proposal to change that.

Part of the proposal, which was originally reported by O Estado de Sao Paulo newspaper, stipulates that workers must pay into the system for a minimum of 20 years.

“Until a draft has been finalized, Bolsonaro cannot confirm anything on social security,” Bolsonaro’s spokesman Otavio Rego Barros said on Monday.

Bolsonaro has put overhauling social security at the top of his agenda. Depending on the final proposals, it could save up to 1.3 trillion reais ($354 billion) over the next decade, economy ministry sources reckon.

Investors have pinned much of their optimistic outlook for Brazil this year on Bolsonaro delivering on pension reform. The elections of Bolsonaro allies as house and senate presidents last week were seen as a step in that direction.

The Bovespa stock market hit a record high on Monday above 98,500 points, and the real has risen around 7 percent against the dollar in the last six weeks.

($1 = 3.6707 reais)

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For Migrants in Russia, Shattered Dreams and Uncertain Futures

Long before she became just one of the financially destitute legions of street sweepers that dot Moscow’s bitterly cold winter landscape, Shaknoza Ishankulova had simply wanted to do the right thing.

It was 2008, and the recent Uzbekistan National University graduate was ecstatic to secure a teaching post at a Tashkent high school, finally making good use of her diploma in secondary education.

Twenty-two years old and eager to guide younger Uzbeks toward a better life, she was shaken when Uzbekistan’s notoriously vast culture of entrenched corruption revealed itself in the form of a personal mentor and supervisor — a deputy principal at the school who notified her that, if she wished to keep her job, a full third of her weekly salary would have to be kicked back to him.

It was his cut, he explained, for having hired her in the first place.

Years passed before Shaknoza gathered the courage to broach the issue with the school’s principal, a suspiciously wealthy public servant who promptly dismissed the complaint as naively frivolous.

Taking her cue from the anti-corruption initiatives she had seen in Uzbekistan, marketed in the form of public service announcements since 2005, Shaknoza escalated her complaint to Russia’s Ministry of Education, and was summarily placed on paid leave pending further investigation. 

Two years and a cancer battle later, Shaknoza’s case had wound its way through ministry proceedings, leaving her fate in the hands of her employer, who summarily fired her, demanded reimbursement for the two years of salaried leave, and permanently blacklisted her from any professional employment.

Like many unemployed Uzbek nationals, Shaknoza was lured by Moscow’s abundance of service sector jobs that paid more than similar work in Tashkent. After spending nearly a year as a sweeper, she lucked out by landing a relatively well-paid waitressing job, only to lose the position when a Russian supervisor publicly castigated her for making conversation with foreign diners, an experience she attributed to the ethnic workplace discrimination many Uzbeks face in Russia.

Tall and slender with distinctly Asian facial features and straight shoulder-length hair, Shoksana, appearing older than her 34 years, is now a cashier and produce vendor at one of Moscow’s many 24-hour convenience stores.

Speaking with VOA on a frigid afternoon in Moscow, her bare hands balled in fists as she stood stock still in seemingly arctic gales, the former high school teacher said she has done reasonably well for herself when compared to fellow migrants sleeping 10 to a room on the city’s outskirts.

Making $37 per 24-hour shift, each of which is followed by 24 hours off, she said the salary is enough to share a two-room apartment with three other laborers: two Uzbek men and a woman, with whom she shares the bedroom.

After feeding and clothing herself, she says, she sends a small amount home to her mother.

“But it’s not enough to save anything,” she said, explaining that she lacks the resources to get ahead in Moscow and that, as a blacklisted whistleblower, any path back to Tashkent is surely a dead end.

Millions seek opportunity

By 2017, Russia was home to nearly 12 million migrants — the world’s third largest foreign-born population.

Much like in western European nations and the United States, the large numbers of immigrants have triggered unease, and a majority of Russians have become increasingly intolerant of the newcomers.

A 2018 survey by the Washington-based Pew Charitable Trust showed that nearly 70 percent of Russian nationals felt the country should allow fewer or no migrants in the future.

While many of the migrants from China, eastern Europe and the West possess a broad range of professional skill sets, the vast majority of Russia’s lowest-paid laborers hail from impoverished central Asian countries, of which Uzbeks are the largest group.

This makes them the most visible targets of anti-immigrant vitriol.

Some high-level Russian officials have relayed largely context-free statistics that they portray as an immigrant-fueled crime wave for which Uzbeks in particular are to blame.

“If you create a ranking of criminality, you will find citizens of Uzbekistan at the top,” Moscow chief prosecutor Sergei Kudeneyev told Moskovsky Komsomolets newspaper in 2014. “They have committed 2,522 crimes; next is Tajikistan, with 1,745 crimes; and in third place there is Kyrgyzstan, whose citizens committed 1,269 crimes.”

“The unremitting crime rates among foreign citizens are causing serious concern, particularly since crimes of this nature draw a lot of public attention,” Russian President Vladimir Putin told a gathering of top security officials in 2016. During the televised statement, the president demanded a swift crackdown on foreign criminals.

Alexander Verkhovsky of SOVA, the Center for Information and Analysis, a think tank in Moscow, questioned the veracity and transparency of these datasets.

“Any statistics on working migrants are very blurry,” he said. “While there are police crime statistics — or at least crime documentation — that may indicate a given perpetrator’s country of origin, that specific data is never published in full.

“In general, data on crimes is organized by categories of crime, and even whether these crimes may have been committed by or against a foreigner,” he said. But by the time police records are internally digested into statistics and prepared for public presentation via the prosecutor’s office, hard data about specific countries of origin has been scrubbed.

“You never get to see the complete data,” he said.

A 2016 report by Columbia University’s Eurasia.org news site suggests migrants who have committed crimes may have acted in response to a series of new Russian laws that drastically increased living costs.

Migrant work permit requirements unveiled in 2015 required applicants to “undergo a battery of tests for HIV, tuberculosis, drug addiction and skin diseases.” Permit holders, the report says, were also required to purchase health insurance, acquire taxpayer identification numbers, and be tested on Russian language, history and laws.

Failure to satisfy requirements within a month of arriving in Russia subjected migrants to a $152 fine.

“Once migrants have jumped through all the hoops, they must pay 14.5 thousand rubles ($219) for their work permit and another four thousand rubles ($61) every month to renew the document,” the report says. “All told, this costs almost $1,000 per year.”

A December 2018 SOVA report on hate crimes that was compiled from official statistics and field research said although attacks targeting foreigners are decreasing, ethnic migrants are among the most vulnerable to violent attacks on Russian soil.

“People perceived as ethnic outsiders constituted the largest group of victims in 2017,” says the report, which recorded 28 ethnically motivated attacks, down from 44 attacks (7 fatal) in 2016.

“Migrants from Central Asia were the most numerous group in this category of victims … followed by individuals of unidentified non-Slavic appearance,” the report states. “Most likely, the overwhelming majority of these people were also from Central Asia, since their appearance was described as Asian.”

Foreigners targeted

All of the migrants VOA spoke with mentioned that they had been intimidated by racists or nationalists, swindled into weeks of free labor by dishonest employers, or were the victims of robbery.

Oibek Usupov, a construction worker from Tashkent, recounted the time he and his brother accepted jobs at an apartment development, wherein the employer required them to sign contracts to work throughout the winter. They received a small advance up front, followed by a handful of paychecks well below what they were promised.

Once the units began selling, the developer said, they would be reimbursed in full. Then payments stopped and, a week before spring, it was announced the project had been bought out by another developer.

The new boss, Usupov told us, said prior contracts weren’t binding because his company hadn’t authorized them.

“We lost months of back pay,” he said.

Adkham Enamov, an Uzbek artist who lives an hour north of Moscow, says he became stranded in Russia after intermediaries who sold his paintings at a famous Moscow arts bazaar disappeared with the profits.

“At the time, my dream was to see Moscow, to sell my paintings in Russia, but I didn’t know that half of Moscow are artists,” he said. “So my current dream is to see my motherland, to return in good health.”

Emanov, 46, who speaks very little Russian, has a 16-year-old son with cerebral palsy. His purpose in Moscow was to cover the medical expenses stacking up in Tashkent.

And then in early 2018, tragedy struck when his 4-year-old daughter, Nama, died from an undiagnosed illness.

“She was buried without me due to the Muslim tradition,” he said, referring to the Sharia ritual of washing and burying the dead within 24 hours of passing. “Well, I sent some money there. Not much.”

After a long, reflective pause, he added, “I should come back being quite rich, but my dream didn’t come true.”

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For Migrants in Russia, Shattered Dreams and Uncertain Futures

Long before she became just one of the financially destitute legions of street sweepers that dot Moscow’s bitterly cold winter landscape, Shaknoza Ishankulova had simply wanted to do the right thing.

It was 2008, and the recent Uzbekistan National University graduate was ecstatic to secure a teaching post at a Tashkent high school, finally making good use of her diploma in secondary education.

Twenty-two years old and eager to guide younger Uzbeks toward a better life, she was shaken when Uzbekistan’s notoriously vast culture of entrenched corruption revealed itself in the form of a personal mentor and supervisor — a deputy principal at the school who notified her that, if she wished to keep her job, a full third of her weekly salary would have to be kicked back to him.

It was his cut, he explained, for having hired her in the first place.

Years passed before Shaknoza gathered the courage to broach the issue with the school’s principal, a suspiciously wealthy public servant who promptly dismissed the complaint as naively frivolous.

Taking her cue from the anti-corruption initiatives she had seen in Uzbekistan, marketed in the form of public service announcements since 2005, Shaknoza escalated her complaint to Russia’s Ministry of Education, and was summarily placed on paid leave pending further investigation. 

Two years and a cancer battle later, Shaknoza’s case had wound its way through ministry proceedings, leaving her fate in the hands of her employer, who summarily fired her, demanded reimbursement for the two years of salaried leave, and permanently blacklisted her from any professional employment.

Like many unemployed Uzbek nationals, Shaknoza was lured by Moscow’s abundance of service sector jobs that paid more than similar work in Tashkent. After spending nearly a year as a sweeper, she lucked out by landing a relatively well-paid waitressing job, only to lose the position when a Russian supervisor publicly castigated her for making conversation with foreign diners, an experience she attributed to the ethnic workplace discrimination many Uzbeks face in Russia.

Tall and slender with distinctly Asian facial features and straight shoulder-length hair, Shoksana, appearing older than her 34 years, is now a cashier and produce vendor at one of Moscow’s many 24-hour convenience stores.

Speaking with VOA on a frigid afternoon in Moscow, her bare hands balled in fists as she stood stock still in seemingly arctic gales, the former high school teacher said she has done reasonably well for herself when compared to fellow migrants sleeping 10 to a room on the city’s outskirts.

Making $37 per 24-hour shift, each of which is followed by 24 hours off, she said the salary is enough to share a two-room apartment with three other laborers: two Uzbek men and a woman, with whom she shares the bedroom.

After feeding and clothing herself, she says, she sends a small amount home to her mother.

“But it’s not enough to save anything,” she said, explaining that she lacks the resources to get ahead in Moscow and that, as a blacklisted whistleblower, any path back to Tashkent is surely a dead end.

Millions seek opportunity

By 2017, Russia was home to nearly 12 million migrants — the world’s third largest foreign-born population.

Much like in western European nations and the United States, the large numbers of immigrants have triggered unease, and a majority of Russians have become increasingly intolerant of the newcomers.

A 2018 survey by the Washington-based Pew Charitable Trust showed that nearly 70 percent of Russian nationals felt the country should allow fewer or no migrants in the future.

While many of the migrants from China, eastern Europe and the West possess a broad range of professional skill sets, the vast majority of Russia’s lowest-paid laborers hail from impoverished central Asian countries, of which Uzbeks are the largest group.

This makes them the most visible targets of anti-immigrant vitriol.

Some high-level Russian officials have relayed largely context-free statistics that they portray as an immigrant-fueled crime wave for which Uzbeks in particular are to blame.

“If you create a ranking of criminality, you will find citizens of Uzbekistan at the top,” Moscow chief prosecutor Sergei Kudeneyev told Moskovsky Komsomolets newspaper in 2014. “They have committed 2,522 crimes; next is Tajikistan, with 1,745 crimes; and in third place there is Kyrgyzstan, whose citizens committed 1,269 crimes.”

“The unremitting crime rates among foreign citizens are causing serious concern, particularly since crimes of this nature draw a lot of public attention,” Russian President Vladimir Putin told a gathering of top security officials in 2016. During the televised statement, the president demanded a swift crackdown on foreign criminals.

Alexander Verkhovsky of SOVA, the Center for Information and Analysis, a think tank in Moscow, questioned the veracity and transparency of these datasets.

“Any statistics on working migrants are very blurry,” he said. “While there are police crime statistics — or at least crime documentation — that may indicate a given perpetrator’s country of origin, that specific data is never published in full.

“In general, data on crimes is organized by categories of crime, and even whether these crimes may have been committed by or against a foreigner,” he said. But by the time police records are internally digested into statistics and prepared for public presentation via the prosecutor’s office, hard data about specific countries of origin has been scrubbed.

“You never get to see the complete data,” he said.

A 2016 report by Columbia University’s Eurasia.org news site suggests migrants who have committed crimes may have acted in response to a series of new Russian laws that drastically increased living costs.

Migrant work permit requirements unveiled in 2015 required applicants to “undergo a battery of tests for HIV, tuberculosis, drug addiction and skin diseases.” Permit holders, the report says, were also required to purchase health insurance, acquire taxpayer identification numbers, and be tested on Russian language, history and laws.

Failure to satisfy requirements within a month of arriving in Russia subjected migrants to a $152 fine.

“Once migrants have jumped through all the hoops, they must pay 14.5 thousand rubles ($219) for their work permit and another four thousand rubles ($61) every month to renew the document,” the report says. “All told, this costs almost $1,000 per year.”

A December 2018 SOVA report on hate crimes that was compiled from official statistics and field research said although attacks targeting foreigners are decreasing, ethnic migrants are among the most vulnerable to violent attacks on Russian soil.

“People perceived as ethnic outsiders constituted the largest group of victims in 2017,” says the report, which recorded 28 ethnically motivated attacks, down from 44 attacks (7 fatal) in 2016.

“Migrants from Central Asia were the most numerous group in this category of victims … followed by individuals of unidentified non-Slavic appearance,” the report states. “Most likely, the overwhelming majority of these people were also from Central Asia, since their appearance was described as Asian.”

Foreigners targeted

All of the migrants VOA spoke with mentioned that they had been intimidated by racists or nationalists, swindled into weeks of free labor by dishonest employers, or were the victims of robbery.

Oibek Usupov, a construction worker from Tashkent, recounted the time he and his brother accepted jobs at an apartment development, wherein the employer required them to sign contracts to work throughout the winter. They received a small advance up front, followed by a handful of paychecks well below what they were promised.

Once the units began selling, the developer said, they would be reimbursed in full. Then payments stopped and, a week before spring, it was announced the project had been bought out by another developer.

The new boss, Usupov told us, said prior contracts weren’t binding because his company hadn’t authorized them.

“We lost months of back pay,” he said.

Adkham Enamov, an Uzbek artist who lives an hour north of Moscow, says he became stranded in Russia after intermediaries who sold his paintings at a famous Moscow arts bazaar disappeared with the profits.

“At the time, my dream was to see Moscow, to sell my paintings in Russia, but I didn’t know that half of Moscow are artists,” he said. “So my current dream is to see my motherland, to return in good health.”

Emanov, 46, who speaks very little Russian, has a 16-year-old son with cerebral palsy. His purpose in Moscow was to cover the medical expenses stacking up in Tashkent.

And then in early 2018, tragedy struck when his 4-year-old daughter, Nama, died from an undiagnosed illness.

“She was buried without me due to the Muslim tradition,” he said, referring to the Sharia ritual of washing and burying the dead within 24 hours of passing. “Well, I sent some money there. Not much.”

After a long, reflective pause, he added, “I should come back being quite rich, but my dream didn’t come true.”

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Trump Likely to Take Credit for US Economic Success in State of Union Speech

U.S. President Donald Trump is expected to praise the U.S. economy and insist on the need for a physical barrier on the U.S. border with Mexico in his upcoming state of the union address. Trump’s address was originally scheduled for Jan. 29, but has been postponed for Feb. 5 (Tuesday) due the longest-ever U.S. government shutdown, caused by the rift between the Republican president and the Democratic majority in Congress over the funding for the border wall. VOA’s Zlatica Hoke reports.

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Trump Likely to Take Credit for US Economic Success in State of Union Speech

U.S. President Donald Trump is expected to praise the U.S. economy and insist on the need for a physical barrier on the U.S. border with Mexico in his upcoming state of the union address. Trump’s address was originally scheduled for Jan. 29, but has been postponed for Feb. 5 (Tuesday) due the longest-ever U.S. government shutdown, caused by the rift between the Republican president and the Democratic majority in Congress over the funding for the border wall. VOA’s Zlatica Hoke reports.

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Report: Huawei CFO May Fight Extradition by Claiming US Political Motive

Huawei executive Meng Wanzhou, who was arrested in Canada and faces possible extradition to the United States, is exploring a defense that claims U.S. charges against her are politically motivated, the Globe and Mail newspaper reported on Monday.

Meng, the chief financial officer of China’s Huawei Technologies Co. Ltd., is the central figure in a high-stakes dispute between the United States and China. Canada arrested Meng in December at the request of the United States and last month she was charged with wire fraud that violated U.S. sanctions on Iran.

“The political overlay of this case is remarkable,” Richard Peck, lead counsel for Meng, told the Toronto newspaper in a telephone interview.

“That’s probably the one thing that sets it apart from any other extradition case I’ve ever seen. It’s got this cloud of politicization hanging over it,” Peck added.

The office of Canadian Justice Minister David Lametti and Peck did not immediately respond to requests for comment. A Huawei spokesman declined comment.

In December, U.S. President Donald Trump said in a Reuters interview he would intervene in the Justice Department’s case against Meng if it would serve national security interests or help close a trade deal with China.

Canada fired John McCallum, its ambassador to China, in January after he said Meng could make a strong argument against being sent to the United States.

“He [Mr. McCallum] mentions some of the potential defenses – and certainly, I think any person that knows this area would see the potential for those defenses arising,” Peck told the newspaper.

Meng’s lawyers are also planning to challenge whether her alleged conduct would be deemed criminal under Canadian law, the Globe and Mail said.

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Tech Women in Silicon Valley Likely to Be Foreign-Born

Pushpa Ithal may not fit the stereotype of the typical Silicon Valley CEO — she’s female, foreign-born, and a mother.

Nevertheless, Ithal is an entrepreneur, living the Silicon Valley dream of running her own startup.

Like her, many foreign-born tech women are finding a place in the Valley — as tech companies have become more and more dependent on foreign-born workers to create their products and services.

Silicon Valley, the global center for high-tech innovation, could be renamed “Immigrant Valley.” When it comes to technical talent, the engine of Silicon Valley is fueled by foreign-born workers, many of whom are from humble roots. And having worked hard to get here, many have ambitions beyond their day jobs.

One of them is Ithal.

On Sundays, she and her two children, ages 5 and 10, pick out the clothes the kids will wear the coming week. Each outfit is placed on a labeled hanger. Then she does the same with the week’s snacks.

“So there are no surprises for the kids,” Ithal said.

Being organized is one of Ithal’s strategies for juggling parenting and running her own startup. And while that juggle is commonplace in Silicon Valley, Ithal is part of a distinct club — foreign-born women in tech. 

Hailing from countries such as India and China, these women make up the majority of all women in certain Silicon Valley fields and are often the only females on male-dominated teams in tech companies. 

Their uniqueness does not stop there. Foreign-born women in tech are more likely to be married and have children than their U.S.-born female coworkers.

​Immigrant Valley

Born in Bangalore, India, Ithal has worked for big tech companies and startups. Her husband, also from India, has built successful startups. Starting her own firm, however, was a leap.

“I came here all the way, let’s risk it,” recalled Ithal, founder and CEO of a company called MarketBeam, which is an AI-driven social marketing company.

More than 60 percent of tech workers in Santa Clara and San Mateo counties, home to Google, Facebook, LinkedIn and other U.S. tech firms, are immigrants, according to the Silicon Valley Institute of Regional Studies. Immigrants work at all levels of the industry. Many are executives, company founders and venture capitalists.

But foreign-born women stand out. In an industry where women make up about 20 percent of the technical workforce, many of these jobs are filled by foreign-born women.

Technical roles

Nearly three-quarters of all women in their prime working year and in technical occupations in Silicon Valley are foreign-born, according to the institute. In computers and mathematics, foreign-born women make up nearly 80 percent of the female workforce.

The numbers surprised Rachel Massaro, vice president of Joint Venture Silicon Valley and senior researcher at the institute. It’s her job to contribute to an annual index of Silicon Valley that looks at housing, transportation and population.

“I double-checked, triple-checked the number just to make sure it was even real,” Massaro said.

Many things contribute to foreign-born women dominating tech — the dearth of women seeking a technical education in the United States, and an emphasis on tech education for girls in other countries, with many seeing technical skills as a path to financial independence and possibly a work visa in the U.S.

There are also stereotypes of what women can and should do with their lives both in the U.S. and overseas.

​Working and raising children

Looking more closely at these women, Massaro found a few other surprises — 71 percent of foreign-born female tech workers ages 25-44 are married, compared to 39 percent of native-born female tech workers.

And they are more likely to be mothers — 44 percent have children, compared to 27 percent of U.S.-born female workers.

One of those women is Lingling Shi, who was born in China. She saw studying computer science as her ticket.

“Computer science, for most of us, it’s easier to apply for a green card,” she said. “It’s not my main interest, I’ll be honest.”

But Shi has succeeded in each of her jobs — she brushes up on any new technical areas online in the evenings — and is now vice president of digital banking technology at East West Bank. With her husband, who is also from China and in tech, she is raising her son.

“I guess for Chinese, the family building is most important thing,” she said.

No amount of career success would fulfill her parents’ desire for grandchildren. The message from family is clear, Shi said — “Oh, you are VP of Engineering now, but you don’t have a kid?”

Many women from India and China are “under a set of cultural expectations and norms that they will have a family right away — and they will excel in their careers,” said AnnaLee Saxenian, dean of the UC Berkeley School of Information, who has written about immigrants in tech.

“These women are really kind of super women in the tasks that they take on,” she added.

As Silicon Valley looks to bring more women into the technical workforce, these women provide a model of how to thrive.

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Zimbabwe Teachers to Strike, Ignoring Government Appeal

Zimbabwean teachers will go ahead with a national strike from Tuesday after last-ditch negotiations with the government failed, unions said, risking more unrest after violent protests last month.

The main public sector union backed down last week on its plan to strike for better pay, citing a volatile situation after security forces cracked down on protesters in January, but teachers said they would go ahead with a work stoppage.

Government officials met teachers’ unions on Monday in Harare to try to dissuade them from walking out, and to continue negotiations, but without success.

The country’s 305,000 government workers are demanding wage rises and payments in dollars to help them to deal with spiraling inflation and an economic crisis that has sapped supplies of cash, fuel and medicines in state hospitals.

The Zimbabwe Teachers Union and Progressive Teachers’ Union of Zimbabwe (PTUZ), the two biggest teachers’ unions, said their demands had not been met and the strike was on from Tuesday.

“There is no going back, the strike is indefinite. But if government concedes to our demands tomorrow, we will call it off,” said PTUZ secretary general Raymond Majongwe.

Education Minister Paul Mavhima said he had pleaded with unions to give talks a chance as the government seeks ways to address some of their grievances.

“They should be guided by considerations of the bigger national interests and in this case it is the welfare of learners,” Mavhima told reporters.

Zimbabwe was thrown into turmoil last month when a three-day stay-at-home strike against President Emmerson Mnangagwa’s decision to raise the price of fuel by 150 percent turned into violent anti-government protests.

The government introduced a subsidized bus service in major cities, forcing public taxis, which had hiked prices threefold, to cut fares.

But on Monday bakers hiked the price of bread by 60 percent, according to new prices displayed in shops. The increase follows that of other basic goods like cooking oil, rice, maize meal and beef last month.

Last week private doctors set new charges in U.S. dollars.

Zimbabweans say Mnangagwa, in office since 2017, is failing to deliver on pre-election promises to provide accessible healthcare and education and to boost employment, leading to growing frustration that analysts say could trigger further unrest.

Mnangagwa and government officials, without giving evidence, accuse Western governments of funding the opposition to cause violence and unrest, an echo of the era of former President Robert Mugabe, when authorities blamed the West for most of its troubles.

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US, China Will Be Big Losers in Tit-for-Tat Trade Wars, UN Report Says

A new report from U.N. Conference on Trade and Development warns the U.S.-China trade wars will negatively impact international trade, with the two economic superpowers emerging among the biggest losers.

U.S.-China trade discussions are underway.  If no agreement is reached by March 1, tariffs on $200 billion in Chinese goods will increase from 10 percent to 25 percent.  A new UNCTAD study warns the repercussions on international trade will be massive, leading to a downturn in the global economy and instability in commodities and financial markets.

Pamela Coke-Hamilton, director of UNCTAD’s Division on International Trade in Goods and Services, and Commodities, said small — and lower — income countries will suffer, as their exposure to external shocks will make it very difficult for them to maintain any level of resilience.

“Stagflation leading to job losses and higher unemployment and more importantly, the possibility of a contagion effect, or what we call a reactionary effect, leading to a cascade of other trade distortionary measures because everybody then will get in the game, and it will be very difficult,” Coke-Hamilton said.  

The study predicts higher tariffs will trigger currency wars and devaluation.  It warns the impact on global value chains and intermediate suppliers will be devastating.  For example, the U.N. report says the relocation from East Asian value chains will result in a reduction of almost $160 billion to the region.

Coke-Hamilton said the retaliatory tariffs imposed by the United States have not achieved their intended effect.  She says they have not resulted in increased domestic production, but rather will lead to a diversion of trade to third countries.

“If the tariffs rise to 25 percent,” Coke-Hamilton said. “What will occur is simple — they will limit trade from China. However, it will not be effective in protecting domestic firms.  So, suppliers in the rest of the world will be more competitive. Trade diversion affects in favor of third countries.”  

U.N. economists said the European Union will emerge as the biggest winner, capturing about $70 billion of U.S.-China bilateral trade.  They said Japan, Mexico and Canada will each capture more than $20 billion.

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Fears of Street Riots as British Economy Takes Brexit Hit

British lawmakers are debating new proposals on the European Union Withdrawal Agreement this week, amid a series of stark warnings over the consequences of Britain crashing out with no deal on 29 March.

Prime Minister Theresa May hopes to negotiate changes to the Withdrawal Agreement in meetings with Brussels in the coming days, after a majority of British MPs backed calls to change the deal last week. The European Union has flatly rejected reopening the talks.

There are growing signs that uncertainty over Brexit is starting to hit investment, as Japanese car giant Nissan has announced Sunday it is moving production of the X-trail — one of its most popular SUV models — out of the UK. The decision reverses a pledge made by Nissan in the wake of the 2016 referendum.

It’s emerged that Britain offered Nissan over $100 million in 2016 to persuade it to keep its operations in the UK. The reversal was met with dismay by British lawmakers.

‘”It concerns me that they have noted the uncertainty around Brexit and I think that is a serious signal to all of us in Parliament, that now is the time to resolve that uncertainty,” Business Minister Greg Clark told reporters Sunday.

As Britain’s ties stumble, Japan and the European Union are celebrating the entry into force of a trade deal, covering a third of global GDP. Visiting Tokyo Monday, German Chancellor Angela Merkel said a Brexit deal was still possible.

“But we need to know from Britain — and this is the critical point — what it envisages,” Merkel said in a press conference.

The threat of a no deal Brexit is growing starker by the day. Government contingency plans leaked to British media purportedly entail evacuating the Royal Family from Buckingham Palace. Worst-case scenarios envisage rioting on the streets amid food and medicine shortages, as waste export restrictions create mountains of garbage.

Alberto Alemanno, a professor of EU Law at HEC Paris, says neither Britain nor Europe can accurately predict the consequences of a no-deal exit.

“Obviously it’s a very complicated scenario, which entails incredible implications for citizens, for businesses on both sides of the Channel. But the other option is to rethink the Withdrawal Agreement. But not entirely — it’s just about arranging the process that might lead the Withdrawal Agreement to finally find a majority in the Houses [of Parliament].”

That might not be enough. Britain is demanding changes to the so-called “Irish backstop” clause, which seeks to keep Britain tied to EU rules until a trade deal is in place — aimed at preventing a hard border between the Irish Republic and Northern Ireland, which will become the EU’s external border.

But the EU is unlikely to budge, says analyst Anand Menon of the UK in a Changing Europe program at Kings College London.

“They won’t give us a time-limited backstop, because as the Irish keep staying, if it’s time-limited it’s not a backstop,” said Menon.

Reopening the Withdrawal Agreement could see other EU member states request their own changes, notably Spain’s demands for talks on the sovereignty of Gibraltar.

“Some member states could have some possible claims, certainly Spain might be one of them. But also the political context in Europe is also moving, and very fast, ahead of the next European elections,” notes Professor Alemmano.

It is a reminder that the current deadlock is just the beginning of Britain’s recasting its relationship with a fast-changing Europe — a process that could take years, if not decades.

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Nissan Cancels Plans to Make SUV in UK

Nissan announced Sunday it has cancelled plans to make its X-Trail SUV in the UK — a sharp blow to British Prime Minister Theresa May, who fought to have the model built in northern England as she sought to shore up confidence in the British economy after it leaves the European Union.

Nissan said it will consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced, allowing the company to reduce investment costs in the early stages of the project.

That reverses a decision in late 2016 to build the SUV at Nissan’s Sunderland plant in northern England, which employs 7,000 workers. That plant will continue to make Nissan’s Juke and Qashqai models. The announcement Sunday made no mention of any layoffs relating to the X-Trail SUV decision.

“While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future,” Nissan Europe Chairman Gianluca de Ficchy said in a statement.

Less than two months before Britain is scheduled to leave the European Union on March 29, Britain still doesn’t have an agreement on what will replace 45 years of frictionless trade. This has caused an enormous amount of concern among businesses in Britain, which fear the country is going to crash out of the vast EU trade bloc without a divorce deal, a scenario economists predict would hurt the U.K. economy.

The Nissan decision, first reported by Sky News, is a major setback for May’s Conservative government, which had pointed to Nissan’s 2016 announcement that Sunderland would make the SUV — months after the country’s Brexit referendum — as proof that major manufacturers still had confidence in Britain’s economic future.

Nissan’s announced its plans to build the X-Trail and Qashqai models in Sunderland after the government sent a letter to company officials offering undisclosed reassurances about its ability to compete in the future.

British politicians have sharply criticized May’s Brexit deal and voted it down in Parliament.

May’s government has refused to rule out a no-deal Brexit, saying the threat strengthens her hand with EU negotiators. Parliament voted last week to give May more time to try to iron out a compromise with the bloc.

Nissan’s change of heart comes just days after Britain’s carmakers issued a stark assessment about Brexit’s impact on the industry, warning that their exports are at risk if the U.K. leaves the EU without an agreement.

Investment in the industry fell 46 percent last year and new car production dropped 9.1 percent to 1.52 million vehicles, in part because of concerns over Brexit, the Society of Motor Manufacturing said.

The group’s chief executive, Mike Hawes, described the threat of a no-deal Brexit as “catastrophic.”

He says the drop in investment is only a foreshadowing of what could happen if the U.K. leaves the EU on March 29 without a deal.

“With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert,” Hawes said Thursday. “Brexit uncertainty has already done enormous damage to output, investment and jobs.”

 

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Nissan Cancels Plans to Make SUV in UK

Nissan announced Sunday it has cancelled plans to make its X-Trail SUV in the UK — a sharp blow to British Prime Minister Theresa May, who fought to have the model built in northern England as she sought to shore up confidence in the British economy after it leaves the European Union.

Nissan said it will consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced, allowing the company to reduce investment costs in the early stages of the project.

That reverses a decision in late 2016 to build the SUV at Nissan’s Sunderland plant in northern England, which employs 7,000 workers. That plant will continue to make Nissan’s Juke and Qashqai models. The announcement Sunday made no mention of any layoffs relating to the X-Trail SUV decision.

“While we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future,” Nissan Europe Chairman Gianluca de Ficchy said in a statement.

Less than two months before Britain is scheduled to leave the European Union on March 29, Britain still doesn’t have an agreement on what will replace 45 years of frictionless trade. This has caused an enormous amount of concern among businesses in Britain, which fear the country is going to crash out of the vast EU trade bloc without a divorce deal, a scenario economists predict would hurt the U.K. economy.

The Nissan decision, first reported by Sky News, is a major setback for May’s Conservative government, which had pointed to Nissan’s 2016 announcement that Sunderland would make the SUV — months after the country’s Brexit referendum — as proof that major manufacturers still had confidence in Britain’s economic future.

Nissan’s announced its plans to build the X-Trail and Qashqai models in Sunderland after the government sent a letter to company officials offering undisclosed reassurances about its ability to compete in the future.

British politicians have sharply criticized May’s Brexit deal and voted it down in Parliament.

May’s government has refused to rule out a no-deal Brexit, saying the threat strengthens her hand with EU negotiators. Parliament voted last week to give May more time to try to iron out a compromise with the bloc.

Nissan’s change of heart comes just days after Britain’s carmakers issued a stark assessment about Brexit’s impact on the industry, warning that their exports are at risk if the U.K. leaves the EU without an agreement.

Investment in the industry fell 46 percent last year and new car production dropped 9.1 percent to 1.52 million vehicles, in part because of concerns over Brexit, the Society of Motor Manufacturing said.

The group’s chief executive, Mike Hawes, described the threat of a no-deal Brexit as “catastrophic.”

He says the drop in investment is only a foreshadowing of what could happen if the U.K. leaves the EU on March 29 without a deal.

“With fewer than 60 days before we leave the EU and the risk of crashing out without a deal looking increasingly real, UK Automotive is on red alert,” Hawes said Thursday. “Brexit uncertainty has already done enormous damage to output, investment and jobs.”

 

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Business Space for Women Fosters Creativity, Cooperation

Finding a comfortable working environment can sometimes be difficult, especially for women working in male-dominated fields like science and technology. But some new startups are all about creating spaces that cater to and are dominated by women. VOA’s Kevin Enochs reports.

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Optimism, But No Concrete Progress at US-China Trade Talks

The most recent round of trade talks between the United States and China concluded in Washington this week with no firm deal other than a commitment to keep talking. Nike Ching reports on the status of the talks between the world’s leading economies, as they try to find common ground before more America tariffs come online in early March.

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Why Wealthy Americans Are Renting Instead of Buying

Although they can afford to purchase a home, more well-to-do Americans are choosing to rent instead.

The number of U.S. households earning at least $150,000 annually that chose to rent rather than buy skyrocketed 175 percent between 2007 and 2017, according to an analysis by apartment search website RentCafe, which used data from the Census Bureau to reach its conclusions.

This new breed of renters challenges long-held assumptions that Americans rent a place to live primarily because they can’t afford to buy a home.

“Lifestyle plays an important part in their decision to rent,” study author Alexandra Ciuntu told VOA via email. “Renting in multiple cities at once has its perks, and so does changing one trendy location after another.”

Business and technology hubs like San Francisco and Seattle have the highest numbers of wealthy renters.

“Given the escalating house prices, it seems like a verifiable better decision to go with renting for longer,” Ciuntu said. “Given that in San Francisco, for example, $200,000 buys you just 260 square feet, it’s understandable why top-earners give renting a serious try before deciding whether to invest in a property or not.”

In fact, in both San Francisco and New York, wealthy renters outnumber well-to-do buyers. There are more high-earning renters — 250,000 — in New York City that anywhere else in the country.

“Ten years ago we would have associated real estate equity with life stability, whereas the two are not necessarily interrelated nowadays,” Ciuntu said. “Renting proves to be a more flexible option for those enjoying a dynamic and rich lifestyle. From a more millennial standpoint, this is no longer a brief solution before settling down, but rather an attractive world of possibilities.”

However, this rental enthusiasm doesn’t mean folks in the wealthiest brackets are rejecting homeownership, according to Ciuntu. Between 2007 and 2017, Chicago added 9,800 more wealthy owners than high-income renters, Seattle gained 13,400, and Denver added almost 18,000 more well-to do earners than wealthy renters.

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Robust Job Gain in January Shows US Economy’s Durability

U.S. employers shrugged off last month’s partial shutdown of the government and engaged in a burst of hiring in January, adding 304,000 jobs, the most in nearly a year.

The healthy gain the government reported Friday illustrated the job market’s resilience nearly a decade into the economic expansion. The U.S. has now added jobs for 100 straight months, the longest such period on record.

The unemployment rate did rise in January to 4 percent from 3.9 percent, the Labor Department said, but mostly for a technical reason: The number of people counted as temporarily unemployed jumped 175,000, with most of that increase consisting of federal workers and contractors affected by the shutdown.

The government on Friday also sharply revised down its estimates of job growth in November and December. Still, hiring has accelerated since last summer, a development that has surprised economists because hiring typically slows when unemployment is so low.

“The overwhelming conclusion from today’s numbers is that the U.S. labor market remained incredibly strong at the start of 2019,” said Leslie Preston, senior economist at TD Economics.

Diane Swonk, chief economist at Grant Thornton, said that many federal workers and contractors likely went out and found part-time work during the 35-day shutdown. The ability of many of them to do so is itself a sign of the job market’s strength, Swonk said.

Last month’s healthy job gain will assuage some concerns that had arisen about the U.S. economy. Global growth is weakening, the Trump administration is engaged in a trade war with China and higher mortgage rates have slowed home sales. Those factors have led many economists to forecast slower growth this year compared with 2018.

Yet strong hiring should boost household incomes, fueling more consumer spending, which would help drive economic growth.

Most sectors of the economy reported solid hiring gains in January. Education and health care added 55,000 jobs, retailers nearly 21,000 and professional and business services, which includes such higher-paying positions as engineers and architects, 30,000. 

Rising pay

The ongoing demand for workers is leading some businesses to offer higher pay to attract and keep staff. Average hourly wages rose 3.2 percent in January from a year earlier. That’s just below the annual gain of 3.3 percent in December, which matched October and November for the fastest increase since April 2009.

Teresa Carroll, an executive at the staffing firm Kelly Services, said her company has explained to many clients that they have to pay more to find the workers they need. Some employers are still reluctant to offer higher pay, which has made it harder for them to find and keep workers, she said.

“They’ve enjoyed two decades of minimal pay growth in general,” she said. “It’s our job to educate our clients about the labor market.”

On a monthly basis, from December to January, wages barely rose, though. That’s likely to keep the Federal Reserve unlikely to raise interest rates in the coming months, economists said. Chairman Jerome Powell said earlier this week that the case for raising the Fed’s benchmark rate had weakened. Many economists and investors took that as a sign that a rate increase is unlikely any time in the coming months.

Swonk cautioned that some quirks likely inflated last month’s job gain. For example, some of the furloughed federal workers and contractors who took part-time jobs during the 35-day government shutdown might have been counted as having two jobs during January. Now that the shutdown has ended, these people will go back to being counted as having just one job beginning in February.

And for most of January, the weather was relatively warm in much of the United States, which likely boosted construction employment. Builders added 52,000 jobs, the most in nearly a year.

The strong job market, though, is encouraging more people who weren’t working to begin looking. The proportion of Americans who either have a job or are seeking one — which had been unusually low since the recession ended a decade ago — reached 63.2 percent in January, the highest level in more than five years.

Jessica Jacumin began a permanent job a month ago as a cook at an assisted living facility in Augusta, Georgia, after working there as a paid intern. Before that, she had been out of work and mostly not looking while she spent 18 months studying culinary arts at Helms College, a career school sponsored by Goodwill Industries.

Though Jacumin, 42, and her husband both have Navy pensions, her new job has provided much-needed income and health insurance. That, in turn, has allowed their family to spend a bit more freely.

“I am right now planning our first family vacation in three years,” she said.

Jacumin, her husband and three children will head to Hilton Head in South Carolina in July.

Impact of shutdown

The partial government shutdown caused 800,000 workers to miss two paychecks. But because these workers will eventually receive back pay, they were counted as employed in the survey of businesses that produces the monthly job gain.

But in a separate survey of households that is used to calculate the unemployment rate, some of these people were counted as temporarily jobless. That’s a key reason why the unemployment rate rose despite the healthy job gain.

Most economists have forecast that the shutdown will likely slow economic growth for the first three months of this year. But some say that even businesses that lost income from the shutdown likely held onto their staffs, knowing that the shutdown would only be temporary.

The nonpartisan Congressional Budget Office estimates that the shutdown slowed annual growth for the January-March quarter by about 0.4 percentage point, to a rate of 2.1 percent, though that loss should lead to a bounce-back later this year.

The partial government shutdown has delayed the release of a range of government data about the economy, including statistics on housing, factory orders, and fourth-quarter growth.

The reports that have been released have been mixed. The Federal Reserve’s industrial production report showed that manufacturing output rose in December by the most in nearly a year, boosted by auto production. But consumer confidence fell in January for a third straight month.

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Hit by Sanctions, Asia’s Iran Crude Oil Imports Drop to 3-Year Low in 2018

Iranian crude oil imports by Asia’s top four buyers dropped to the lowest volume in three years in 2018 amid U.S. sanctions on Tehran, but China and India stepped up imports in December after getting waivers from Washington.

Asia’s top four buyers of Iranian crude — China, India, Japan and South Korea — imported a total 1.31 million barrels per day (bpd) in 2018, down 21 percent from the previous year, data from the countries showed.

That was the lowest since about 1 million bpd in 2015, when a previous round of sanctions on Iran led to a sharp drop in Asian imports, Reuters data showed.

The United States reimposed sanctions on Iran’s oil exports last November as it wants to negotiate a new nuclear deal with the country. U.S. officials have said they intend to reduce the Islamic Republic’s oil exports to zero.

On a monthly basis, Asia’s imports from Iran rebounded to a three-month high of 761,593 bpd in December as China and India stepped up purchases after Washington granted eight countries waivers from the Iranian sanctions for 180 days from the start of November.

“We expect Iranian exports to Asia to remain stable at around 800,000 barrels per day until May, when the waivers expire,” said Energy Aspects analyst Riccardo Fabiani.

In December, China’s imports climbed above 500,000 bpd for the first time in three months, while India’s imports rose above 302,000 bpd.

Japan and South Korea did not import any Iranian crude that month because they were still sorting out payment and shipping issues, but the countries have resumed oil lifting from Iran this month.

During the 180-day period, China can import up to 360,000 bpd of Iranian oil, while India’s imports are restricted to 300,000 bpd. South Korea can import up to 200,000 bpd of Iranian condensate.

“After May, it will all depend on the U.S. administration’s decisions, which at the moment remain completely obscure. On balance, they are likely to extend the current waivers, although rumors are that there could be a significant cut in waivered volumes,” Fabiani said.

As a precaution, Indian Oil Corp, the country’s top refiner, is looking for an annual deal to buy U.S. crude as it seeks to broaden its oil purchasing options, its chairman said Wednesday.

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Hit by Sanctions, Asia’s Iran Crude Oil Imports Drop to 3-Year Low in 2018

Iranian crude oil imports by Asia’s top four buyers dropped to the lowest volume in three years in 2018 amid U.S. sanctions on Tehran, but China and India stepped up imports in December after getting waivers from Washington.

Asia’s top four buyers of Iranian crude — China, India, Japan and South Korea — imported a total 1.31 million barrels per day (bpd) in 2018, down 21 percent from the previous year, data from the countries showed.

That was the lowest since about 1 million bpd in 2015, when a previous round of sanctions on Iran led to a sharp drop in Asian imports, Reuters data showed.

The United States reimposed sanctions on Iran’s oil exports last November as it wants to negotiate a new nuclear deal with the country. U.S. officials have said they intend to reduce the Islamic Republic’s oil exports to zero.

On a monthly basis, Asia’s imports from Iran rebounded to a three-month high of 761,593 bpd in December as China and India stepped up purchases after Washington granted eight countries waivers from the Iranian sanctions for 180 days from the start of November.

“We expect Iranian exports to Asia to remain stable at around 800,000 barrels per day until May, when the waivers expire,” said Energy Aspects analyst Riccardo Fabiani.

In December, China’s imports climbed above 500,000 bpd for the first time in three months, while India’s imports rose above 302,000 bpd.

Japan and South Korea did not import any Iranian crude that month because they were still sorting out payment and shipping issues, but the countries have resumed oil lifting from Iran this month.

During the 180-day period, China can import up to 360,000 bpd of Iranian oil, while India’s imports are restricted to 300,000 bpd. South Korea can import up to 200,000 bpd of Iranian condensate.

“After May, it will all depend on the U.S. administration’s decisions, which at the moment remain completely obscure. On balance, they are likely to extend the current waivers, although rumors are that there could be a significant cut in waivered volumes,” Fabiani said.

As a precaution, Indian Oil Corp, the country’s top refiner, is looking for an annual deal to buy U.S. crude as it seeks to broaden its oil purchasing options, its chairman said Wednesday.

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Ghirardelli, Russel Stover Fined over Chocolate Packaging

Ghirardelli and Russell Stover have agreed to pay $750,000 in fines after prosecutors in California said they offered a little chocolate in a lot of wrapping.

Prosecutors in Sacramento, San Joaquin, Shasta, Fresno, Santa Cruz and Yolo counties sued the candy makers, alleging they misled consumers by selling chocolate products in containers that were oversized or “predominantly empty.”

Prosecutors also alleged that Ghirardelli offered one chocolate product containing less cocoa than advertised.

The firms didn’t acknowledge any wrongdoing but agreed to change their packaging under a settlement approved earlier this month. Some packages will shrink or will have a transparent window so consumers can look inside.

San Francisco-based Ghirardelli and Kansas City-based Russell Stover are owned by a Swiss company, Lindt & Sprungli.

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Ghirardelli, Russel Stover Fined over Chocolate Packaging

Ghirardelli and Russell Stover have agreed to pay $750,000 in fines after prosecutors in California said they offered a little chocolate in a lot of wrapping.

Prosecutors in Sacramento, San Joaquin, Shasta, Fresno, Santa Cruz and Yolo counties sued the candy makers, alleging they misled consumers by selling chocolate products in containers that were oversized or “predominantly empty.”

Prosecutors also alleged that Ghirardelli offered one chocolate product containing less cocoa than advertised.

The firms didn’t acknowledge any wrongdoing but agreed to change their packaging under a settlement approved earlier this month. Some packages will shrink or will have a transparent window so consumers can look inside.

San Francisco-based Ghirardelli and Kansas City-based Russell Stover are owned by a Swiss company, Lindt & Sprungli.

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Trump Order Asks Federal Fund Recipients to Buy US Goods

President Donald Trump will sign an executive order Thursday pushing those who receive federal funds to “buy American.” The aim is to boost U.S. manufacturing.

Peter Navarro, director of the White House National Trade Council, told reporters during a telephone briefing the policies are helping workers who “are blue collar, Trump people.” Later he amended that, saying he “every American is a Trump person” because Trump’s economic policies affect everyone.

 

Navarro said the order would affect federal financial assistance, which includes everything from loans and grants to insurance and interest subsidies.

 

He says some 30 federal agencies award over $700 billion in such aid each year. Recipients working on projects like bridges and sewer systems will be encouraged to use American products.

 

 

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Need for Speed: Carts on Rails Help Manila’s Commuters Dodge Gridlock

Thousands of commuters flock to Manila’s railway tracks every day, but rather than boarding the trains, they climb on to wooden carts pushed along the tracks, to avoid the Philippine capital’s infamous traffic gridlock.

The trolleys, as the carts are known, most of them fitted with colorful umbrellas for shade from the sun, can seat up to 10 people each, who pay as little as 20 U.S. cents per ride, cheaper than most train rides.

“I do this because it gives us money that’s easy to earn,” said Reynaldo Diaz, 40, who is one of more than 100 operators, also known as “trolley boys,” who push the carts along the 28-km (17-mile) track, most wearing flimsy flip-flops on their feet.

“It’s better than stealing from others,” said Diaz, adding that he earned around $10 a day, just enough for his family to get by. A trolley boy since he was 17, he lives in a makeshift shelter beside the track with his two sons.

Diaz said the trolley boys were just “borrowing” the track from the Philippine National Railways, but the state-owned train company has moved to halt the trolley service after the media drew attention to its dangers recently.

The risk arises because those pushing and riding the trolleys have to watch out for the trains to avoid collisions.

“Of course we get scared of the trains,” said Jun Albeza, 32, who has been a trolley boy for four years after he was laid off from plumbing and construction jobs.

“That’s why, whenever we’re pushing these trolleys, we always look back, so we can see if there’s a train coming. Those in front of us will give us a heads-up too.”

When a train approaches, the trolley boys quickly grab the lightweight carts off the track and jump out of the way along with their riders.

Still, there have been no fatal accidents since the makeshift service started decades ago, some of the trolley boys told Reuters.

A Manila police officer confirmed that records showed no casualties related to the trolley boys.

“It is really dangerous and should not be allowed, But we understand that it’s their livelihood,” said the officer, Bryan Silvan. “They’re like mushrooms that just popped up along the tracks and they even have their own association.”

When the Philippine National Railways began operation in the 1960s, its network of more than 100 stations extended to provinces outside Manila.

But neglect and natural disasters have since caused it to cut back operations by two-thirds, even as the capital’s population has ballooned to about 13 million.

For office workers and students, the minutes shaved off daily commutes justify the risks of trolley rides.

“The distance to our workplaces is actually shorter through this route,” said one office worker, Charlette Magtrayo.

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