Global Business Center world news http://global-business-center.com Business and trade news from GBC Sat, 19 May 2012 09:04:13 +0200 Astcon RSS Builder en hourly 1 London Fears Losing Aviation Relevance http://global-business-center.com/r10855,London_Fears_Losing_Aviation_Relevance.php http://global-business-center.com/r10855,London_Fears_Losing_Aviation_Relevance.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10855,London_Fears_Losing_Aviation_Relevance.php With Europe still struggling to build sustained growth, many governments are looking to emerging economies in Asia, Africa and South America to boost trade.  A rivalry is emerging among the continent's main airports to provide the fastest links to these hubs. London's Heathrow airport, o]]> With Europe still struggling to build sustained growth, many governments are looking to emerging economies in Asia, Africa and South America to boost trade.  A rivalry is emerging among the continent's main airports to provide the fastest links to these hubs. London's Heathrow airport, one of the world's busiest, fears it is being left behind.

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Four years ago, environmental protestors from Greenpeace demonstrated atop a passenger jet at London's Heathrow airport.   The stunt gained widespread media attention, and the battle for the future of Britain's aviation industry is still being fought.

Joss Garman is a senior campaigner with Greenpeace.

"Britain is already very well served by airport capacity and the problem is that a huge amount of that capacity is being taken up by short-haul flights to destinations less than 500 kilometers away," said Garman.  "So places like Paris and Manchester [are] easily reachable by train, which is ten times less polluting."

The British government has ruled out building a third runway at Heathrow and has no current plans to expand other airports.  But business groups say Britain is being held back.

Nicola Walker is head of infrastructure at the employers' organization, Confederation of British Industry.  Its offices overlook the Crossrail construction project, one of the capital's biggest infrastructure investments.  Walker says Britain needs to be more ambitious.

"Our current international hub Heathrow is running at 99.2 percent capacity, and we don't believe that there's the opportunity to put on new links to those high-growth emerging markets that businesses really want to attack," Walker noted.

That means markets like Chongqing in China.  Chongqing has grown from a small regional city to a manufacturing hub, home to an estimated 7-million people.

Additionally, Sao Paolo, Brazil is seeing a huge influx of European businesses keen on trying to exploit old colonial ties.

Research by the British Chamber of Commerce claims two-thirds of business leaders in Brazil, China, India, South Korea and Mexico are more likely to trade with France, Germany or the Netherlands rather than Britain, because they offer more direct flights.

Independent aviation consultant Peter Forbes says London's lack of direct flights means it is losing out to rivals.

"Frankfurt for example has, I think, something like seven routes into China in comparison with Heathrow's four," said Forbes.  "But Germany has a lot more trade with China and from their point of view it's good to have those links."

London Mayor Boris Johnson wants a new airport built in the Thames estuary. The architecture firm Foster and Partners, which designed Beijing's airport, has submitted plans.  But with Britain back in recession, analysts say it will be difficult to justify the estimated price tag of $80 billion. The government says it will make a decision later this year.

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Greek Political Leaders Fail to Form Government http://global-business-center.com/r10853,Greek_Political_Leaders_Fail_to_Form_Government.php http://global-business-center.com/r10853,Greek_Political_Leaders_Fail_to_Form_Government.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10853,Greek_Political_Leaders_Fail_to_Form_Government.php Greek political leaders have failed to form a coalition that would resolve a political impasse and avert the need for new elections.

Socialist leader Evangelos Venizelos made the announcement Friday after the Radical Left Coalition, or Syriza, refused to join the Socialists and conserv]]>
Greek political leaders have failed to form a coalition that would resolve a political impasse and avert the need for new elections.

Socialist leader Evangelos Venizelos made the announcement Friday after the Radical Left Coalition, or Syriza, refused to join the Socialists and conservatives due to a disagreement on the country's economic austerity program.

The Socialist and conservative New Democracy parties have proposed a gradual phasing out of the tough measures imposed by the European Union and IMF in exchange for a bailout loan. The leftists want them canceled immediately. If there is no lasting agreement by May 17, new elections will be called.

"Arrogance and petty party politics with a view toward elections are not suitable at this critical moment. Even if elections are repeated, what is going to change from this attitude? Nothing. The moment of truth is here for everyone. I will inform the president tomorrow afternoon. I hope everybody shows maturity and responsibility in consultations with the president,'' said Venizelos.

Syriza leader Alexis Tsipras said the Greek people voted against the austerity measures imposed by the European Union and IMF, and that their will cannot be ignored.

"It is not the Left Coalition that has refused this proposal, but the Greek people who did so with their vote on Sunday.''

Greek voters punished both the Socialists [PASOK] and New Democracy for having pushed through the tough economic austerity measures in return for huge international loans to avert bankruptcy.

Venizelos is the third Greek leader who tried and failed to form a government after Sunday's inconclusive election.  

Earlier Friday, Venizelos met with the leader of the Conservative Party, Antonis Samaras, for talks on a coalition government. Another possible ally, the small Democratic Left party, said it would not join a government made up only of Socialists and the conservative New Democracy party that did not include Syriza.

President Karolos Papoulias is expected to call on parties to form an emergency coalition to govern until new elections are held.  

New Democracy won the most parliamentary seats in Sunday's election, followed by the Radical Left and the Socialists. But no party won enough seats to be able to put together a new government on its own.

Syriza leader Tsipras had called on the two parties to renounce their support for the deep spending cuts, but could not get enough support in parliament to hammer out a coalition.

European Union leaders are pressuring Greece to carry through with the austerity plans. Germany warned Friday that Greece will get no more money without reforms and that the eurozone can survive if the cash-strapped country leaves Europe's 17-member currency union.

Some information for this report was provided by AP, AFP and Reuters.

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JP Morgan Losses Bolster Case for New Financial Regulations http://global-business-center.com/r10854,JP_Morgan_Losses_Bolster_Case_for_New_Financial_Regulations.php http://global-business-center.com/r10854,JP_Morgan_Losses_Bolster_Case_for_New_Financial_Regulations.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10854,JP_Morgan_Losses_Bolster_Case_for_New_Financial_Regulations.php Banks stocks took a big hit Friday after JP Morgan Chase and Company reported a $2-billion loss on a complex trading strategy that went bad. The bank's disclosure is renewing debate over the need for tougher financial regulations.

It's one of the world's biggest investment bank]]> Banks stocks took a big hit Friday after JP Morgan Chase and Company reported a $2-billion loss on a complex trading strategy that went bad. The bank's disclosure is renewing debate over the need for tougher financial regulations.

It's one of the world's biggest investment banks, and its CEO is among the harshest critics of government efforts to rein in risky financial bets. But in a late night conference call to shareholders, JP Morgan CEO Jamie Dimon told investors the bank may have taken too big a risk.

“We are reducing that hedge, but in hindsight, the new strategy was flawed, complex, poorly reviewed, poorly executed and poorly monitored," said Dimon.

Dimon blamed the $2-billion loss on a complex trading scheme that was designed, ironically, to help manage the bank's credit risks. Instead, the trading blunder bolstered the argument that big banks cannot be trusted to handle risks on their own.

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"Well, as he [Dimon] said himself, there's egg on his face [he's embarrassed] and it does play very well, as he says, into the pundits who have been advocating the Volcker rule and also the scenario of being too big to fail," said CMC Markets analyst Brenda Kelly.

The Volcker rule is named after former Federal Reserve Chairman Paul Volcker. It would restrict the biggest U.S. banks from making risky investments that do not benefit bank customers. Volcker said such trades involving credit default swaps and other derivatives played a key role in the financial crisis of 2008.

"It was elements of a casino, a very complex casino with all sorts of inter-dependencies.  And when it came under pressure, not just from credit default swaps but otherwise, when the system came under pressure - it collapsed," said Volcker.

JP Morgan has warned investors to expect additional losses - sending a shiver through Wall Street. JP Morgan stock lost more than 8 per cent of its value. Other financial stocks also suffered big declines.

Analysts fear the scandal will impact regulations not just in the U.S., but around the world.

"Just as it will in the U.S. and in the eurozone, Asia will not be spared this push down the path of greater, tighter regulations," said Tim Condon, who is head of Asia research at ING Financial Markets.

In a statement Friday, U.S. Senator Carl Levin of Michigan, who has been pushing for new banking rules, said the bank's losses were "a stark reminder of the need for regulators to establish tough, effective standards."

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US Panel Recommends Approval of Drug to Prevent HIV http://global-business-center.com/r10852,US_Panel_Recommends_Approval_of_Drug_to_Prevent_HIV.php http://global-business-center.com/r10852,US_Panel_Recommends_Approval_of_Drug_to_Prevent_HIV.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10852,US_Panel_Recommends_Approval_of_Drug_to_Prevent_HIV.php The recommendation by a U.S government-funded panel of doctors and scientists that healthy people should be able to use an AIDS drug to prevent contracting the HIV virus has many advocates hoping the U.S. goal of an “AIDS-free generation” may actually be more within reach. The potentially lif]]> The recommendation by a U.S government-funded panel of doctors and scientists that healthy people should be able to use an AIDS drug to prevent contracting the HIV virus has many advocates hoping the U.S. goal of an “AIDS-free generation” may actually be more within reach. The potentially life-saving effects of the prophylactic use of Truvada are in the spotlight.

The U.S. Food and Drug Administration held a marathon 12-hour hearing Thursday to evaluate evidence that Truvada, a once-daily pill currently being used to treat AIDS patients, also could be used to prevent HIV infection in healthy individuals.

A panel of independent medical experts voted overwhelmingly to back Truvada’s use to prevent HIV and urged the FDA to approve the drug for use by those who are considered to be at a high risk for contracting the disease.

“Using Truvada or pre-exposure prophylaxis, to prevent acquiring HIV, for an HIV negative person is a game changer, and it’s something that I believe is really going to take us to the next level," said Kali Lindsey, who is with the National Minority AIDS Council.

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New drug provides hope

Some critics have said Truvada could give people a false sense of confidence and lead to a reduced use of condoms. But HIV educator Brad Miller believes approval of the drug will actually promote a dialogue on condom usage.

“They’ll know more about their health and what they can do to protect their health, versus being told what to do about their health,” said Miller.

Lisa and her husband, Tracy, who is HIV positive, make up one of the estimated 140,000 couples in the U.S. with mis-matching HIV statuses.

“This woman cared more about me than what I was infected with. Because the average person around here when they hear it, would go running the opposite direction," said Tracy.

Lisa chose not to cut ties, but instead to tie the knot [get married], and also to try Truvada.

“I want to remain healthy, so that in the times of his need, that I’m there to assist. So when PrEP came along I jumped at the idea," said Lisa.

Optimism among advocates, users

PrEP refers to pre-exposure prophylaxis, and Tracy is a strong supporter.

“PrEP helps, it does. I think that’s one of the most positive things they could have come up with, along with their research of how to combat the disease," said Tracy.

Currently wait-listed for a trial where she would receive free PrEP drugs, Lisa worries about the cost - as high as $1,500 per month.

“I just hope that they approve the PrEP, so that many others that are living in the situation that I’m living in will have this resource available to them,” she said.

The U.S. Food and Drug Administration is not required to follow the panel's recommendation on Truvada, but FDA officials concluded the high-profile session by saying more must be done to prevent more HIV infections from occurring.

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India's Softer Tax Stance Fails to Placate Foreign Investors http://global-business-center.com/r10850,Indias_Softer_Tax_Stance_Fails_to_Placate_Foreign_Investors.php http://global-business-center.com/r10850,Indias_Softer_Tax_Stance_Fails_to_Placate_Foreign_Investors.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10850,Indias_Softer_Tax_Stance_Fails_to_Placate_Foreign_Investors.php India has softened recent controversial tax measures that had rattled foreign companies, but this has not gone far enough to placate overseas investors. Business confidence in Asia’s third largest economy has taken a hit.

For weeks, foreign investors had pressed India to reconsider ]]>
India has softened recent controversial tax measures that had rattled foreign companies, but this has not gone far enough to placate overseas investors. Business confidence in Asia’s third largest economy has taken a hit.

For weeks, foreign investors had pressed India to reconsider a proposal to retroactively tax foreign companies that have bought an Indian asset overseas.  Parliament passed the law this week after Finance Minister Pranab Mukherjee said he could not let India become a tax haven.

The government says the new tax rules are aimed at  "tax evasion" by foreign companies, which often route their investments in India through tax friendly countries like Mauritius.  

Investors say they face the prospect of huge bills they had not anticipated because the new law can be used against transactions from as early as 1962. The company immediately affected is Vodafone. It could face demands to pay more than $2.2 billion in taxes from its takeover in 2007 of a telecom company, even though the Indian Supreme Court ruled it was not liable to pay the tax.   

However, Indian authorities stepped back on a separate rule that could also have led to higher tax liabilities for foreign investors in India’s stock markets. They said its implementation will be deferred by a year.

In recent weeks, concerns over the proposed law had led some foreign funds to withdraw investments from India, costing the country billions of dollars.

However, analysts say the government’s moves may not have done enough to revive confidence in India as an attractive investment destination.

A. Prasanna, an economist at ICICI Securities in Mumbai, says India’s economy has been losing its sheen as growth slides to around seven percent.  “I don’t think anyone should question the intent of the government. But I think the short term problem or the medium term problem that continues to persist, essentially is that reforms are not moving forward and the investment climate has worsened," Prasanna stated. "That apart, there is a general sense of drift in policy making which has definitely contributed to this problem.”

Officials say India remains attractive for investors because it is a growing economy with a huge middle class population. They say investment decisions are based on the size of the market and will not be impacted by the new tax laws.

But analysts are not so sure. They point out that there are no signs of a quick economic revival as the government had hoped. The national currency, the rupee, has plunged by nearly 16 percent against the dollar in the last year. And the latest data indicates that industrial output - a key economic indicator - fell 3.5 percent in March from a year ago due to weak domestic demand and investment.

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Ethiopia's Meles Blames African Corruption on Foreign Investors http://global-business-center.com/r10851,Ethiopias_Meles_Blames_African_Corruption_on_Foreign_Investors.php http://global-business-center.com/r10851,Ethiopias_Meles_Blames_African_Corruption_on_Foreign_Investors.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10851,Ethiopias_Meles_Blames_African_Corruption_on_Foreign_Investors.php What is the poison that corrupts many African leaders, no matter how honorable their intentions when they take office?  That was the question put to a panel of that included heads of state and government at the World Economic Forum on Africa on Thursday.  The question received a surprisingly ca]]> What is the poison that corrupts many African leaders, no matter how honorable their intentions when they take office?  That was the question put to a panel of that included heads of state and government at the World Economic Forum on Africa on Thursday.  The question received a surprisingly candid answer.

It was promoted as a conversation on Africa's leadership.  Among those on stage were the leaders of Africa's two most populous nations - Nigeria's President Goodluck Jonathan and Ethiopia's Prime Minister Meles Zenawi.

The conversation was routine until the floor was opened to questions from youth leaders.  A young South African woman stood up to ask the question that many had pondered, but few dared to pose.

"Good day.  My name is Gobano Madnamaraso," she said. "When our leaders are young - most of our African leaders - they are visionaries.  They have wonderful visions for our continent.  They are admirable.  The speak good, they do good.  But something happens to them once they are seated in those chairs of power.  My question is:  We want to see our continent change, but we are afraid of this power that corrupts even some of the best, most admirable leaders on our continent, and what is this poison that happens in these chairs of power and how can we prevent it? "

But perhaps just as frank as the question was the reply.

Ethiopian Prime Minister Meles Zenawi pointed to greedy foreign corporations as a main driver of corruption.

"What is the poison that leaders face when you go to national palaces, and transforms people with vision sometimes into ordinary thieves?  Let's start with the total amount of loot in Africa, and what our role as leaders in that loot[ing] is," said Meles. "The vast majority of the loot[ing] is done by properly organized companies through all sorts of accounting gimmicks."

Meles said African leaders are forced to be facilitators for foreign companies who demand favors in return for their investment that might means jobs for their people.

"It's a difficult thing to manage because our bargaining cards are very limited," he said. "We need these companies to create jobs, in order for them to come to Africa.  The image is very negative, so the risk is artificially spiked.  And if the risk is artificially spiked, the return has to be commensurate with the risk.  And so it's difficult to attract them without extraordinary returns."

The Ethiopian leader said that sometimes leaders give in to temptation.

"Sometimes we facilitate without being paid," he said. "At other times we say, 'Okay, if your family's farm is being looted, why not join in?'  I think that is the most insidious form of corruption.  It affects everybody, including those whose hands are not in the till."

Another question that was less confrontational, but no less pointed, came from young Sudanese woman who wanted an explanation for the lack of female representation among African leaders.

"Hello, I am Jihada Bonefice from the Khartoum hub in Sudan," she said. "It's quite wonderful to see all you gentlemen up there.  But my question is:  How do you envision the role of African women in shaping the future?  And is there any way you are trying very hard to maybe to get African women where they belong - right up there [on stage]?"

Gabon's President Ali Bongo Ondimba answered, saying “Women are Africa's chance for success tomorrow.”  But panelists agreed that solutions to the continent's leadership gender imbalance will be difficult.

Increasing the ranks of female leaders will be among topics discussed at Friday's closing forum meetings, along with China's rising prominence in Africa.

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Ancient Mayan Artwork, Calculations Discovered http://global-business-center.com/r10849,Ancient_Mayan_Artwork,_Calculations_Discovered.php http://global-business-center.com/r10849,Ancient_Mayan_Artwork,_Calculations_Discovered.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10849,Ancient_Mayan_Artwork,_Calculations_Discovered.php Archeologists working among the ruins of a 9th century Mayan town in Guatemala have discovered a room filled with extraordinarily well-preserved artwork. The colorful wall paintings provide new insights into how Mayan astronomers charted the cosmos.  

Xultun was the largest city in th]]>
Archeologists working among the ruins of a 9th century Mayan town in Guatemala have discovered a room filled with extraordinarily well-preserved artwork. The colorful wall paintings provide new insights into how Mayan astronomers charted the cosmos.  

Xultun was the largest city in the ancient Mayan empire in Central America, where, at its height, an estimated 90,000 people lived and worked among pyramids, inscribed monuments, water reservoirs and sport fields. But by the 14th century, the Mayan civilization had collapsed and this great city fell with it.

In 1920, Xultun was rediscovered, overgrown with vegetation. Work to map the 31 square-kilometer site and decode the myriad inscriptions on its monuments continues to this day.<!--IMAGE-LEFT-->

In 2008, Boston University archeologist William Saturno was exploring tunnels in the Xultun ruins that had been opened by looters in the 1970s.  One day his student assistant, Max Chamberlain, discovered the entranceway - close to the surface but hidden by vegetation - to a room-like structure.

“Max thought he saw the remnants of paint on the walls of this fairly small Maya structure,” Saturno says.

Once inside the room - part of a larger residential complex at the Xultun site - Saturno knew he was in a special place. On the opposite wall, he came face-to-face with the painting of a Mayan king, its regal colors remarkably preserved.<!--AV-->

“[He’s wearing] this gorgeous sort of blue-green head dress, he’s holding this white scepter in his hand," Saturno says. "He’s sitting on top of this throne. He is just incredible to look at."   

Another figure painted in brilliant orange wears a white medallion and holds a small stylus in his hand - possibly the artist scribe who lived in the house, Saturno speculates.  On the other walls are more male figures in black with white loin cloths and identical head dresses with a single red feather.  And running all around, between and sometimes on top of these figures is tiny Mayan hieroglyphic script.

“There are these large numerical arrays, just columns of numbers of one after another, after another," Saturno says. "This seems to be a place where Maya scribes are at work.  They are painting and repainting texts on the walls. They are in different hands and different scales and different sizes in order to have the calculations present.”<!--IMAGE-LEFT-->

According to Saturno, the painted numbers are a version of the Mayan calendar system, one that he notes predates the Mayan astronomical tables written on bark paper books in the 14th century. The parallels were obvious once he began to do the math.

“The Maya had a 260-day ceremonial calendar and a 365 solar calendar," Saturno says. "The Maya combined those two calendars to make a longer cycle of time that repeated every 52 years. But they also kept track of the motions of Venus and the motions of Mars and perhaps the motions of Mercury. And the numbers that are recorded on this wall are multiples of all of those cycles combined.”

The painted room also pays tribute to the way the Maya used those calendars to synchronize human activities with the larger cycles of the moon and planets they routinely observed in the heavens. Saturno says while modern humans keep looking for endings, the Maya were looking for a guarantee that nothing would change.

“This is the type of calculation and dissemination of knowledge that we don’t get to look at for a people for whom this type of knowledge was central to their existence.”

Saturno is making images of the Xultun paintings that students and scholars can access using desk-top scanners and other tools. When that work is done, Saturno plans to rebury the site, leaving it to rest where the ancient Mayan people created it.  His study of the Xultun site is featured in the journal Science and in the June issue of the National Geographic magazine.

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Africa's Transformation on Display at World Economic Forum http://global-business-center.com/r10847,Africas_Transformation_on_Display_at_World_Economic_Forum.php http://global-business-center.com/r10847,Africas_Transformation_on_Display_at_World_Economic_Forum.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10847,Africas_Transformation_on_Display_at_World_Economic_Forum.php The pace of change across Africa may be about to accelerate, driven by advances in technology that are just breaking onto the scene. The World Economic Forum on Africa in Addis Ababa provides a peek at the coming transformation.

Africa's big guns attended the forum. Seven heads of ]]>
The pace of change across Africa may be about to accelerate, driven by advances in technology that are just breaking onto the scene. The World Economic Forum on Africa in Addis Ababa provides a peek at the coming transformation.

Africa's big guns attended the forum. Seven heads of state were at the top of a long list of luminaries such as former United Nations Secretary-General Kofi Annan.

But the big ideas were coming from relative unknowns, names like Ory Okolloh, Bright Simons and Omobola Johnson, who were featured speakers at a session on Africa's innovators.

Young developers driving change

Okolloh, policy manager for Google South Africa, explained what Google is doing with a group she called “young developers."

"We have set up something called Google Tech User Groups in more than 30 countries like DRC [Democratic Republic of Congo], Cote d'Ivoire [Ivory Coast]. Establishing a footprint, and giving these developers who are doing what they were doing anyway, but without the resources, without some of the skills around how to improve an application for instance, or to better improve a user interface [or] how to get an app to market," said Okolloh.

Bright Simons is president of Mpedigree Network in Ghana. Concerned about the deaths of 2,000 people a day from fake medical products, his firm came up with a way to help consumers know that the medicines they buy are genuine.

"We've been trying in about six countries in Africa to create a mechanism where manufacturers and distributors of medicine can implant a unique ID, identification tags on each pack of medicine, so when the consumer buys the medicine, that comes with a free text message or a free MMS, using a cameraphone to verify instantly whether the particular medicine they are holding is likely to kill them or save their lives," said Simons.

Major wave of innovation on horizon

Omobola Johnson is Nigeria's minister of communications technology. She said her government is working with the tech giants to allow people with good ideas the chance to do great things.

"It's the responsibility of us as policy makers to look at, 'How do we create that environment that allows those innovators to thrive and succeed?' Google is working with us, creating islands of sanity where people can think, and taking ideas into reality and commercialization," she said.

Okolloh said the online world is helping to break down social barriers that have prevented some Africans from achieving success.

"It frees people from waiting for someone to make things happen for them, which has been a big challenge for young people especially.  And, that's why they're gravitating to technology so much," she said. "It's the one space where you don't have to come from the right family, or the right tribe, or have the right connection to make it. And it's an area old people don't understand, so they can't dominate it."

Okolloh admits that, as a woman, she also loves technology because it neutralizes gender stereotypes.

"I'm not sure I'd be as successful as I am as a woman in a profession other than in technology. Because it tends to be a bit neutral. If you have the tools, if you can code, it's a lot more sort of merit, and recognizes talent."

These innovators say that in as little as five years, a combination of fresh ideas and demographic imperatives will begin to revolutionize Africa. As several participants at the economic forum noted, half of the continent's population is under 30, and they are demanding change.

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PM: DR Congo Can Cut Poverty in Half by Exploiting Agriculture http://global-business-center.com/r10848,PM:_DR_Congo_Can_Cut_Poverty_in_Half_by_Exploiting_Agriculture.php http://global-business-center.com/r10848,PM:_DR_Congo_Can_Cut_Poverty_in_Half_by_Exploiting_Agriculture.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10848,PM:_DR_Congo_Can_Cut_Poverty_in_Half_by_Exploiting_Agriculture.php The new prime minister of the Democratic Republic of Congo says the country could halve its poverty rate in the next five years by exploiting its vast agricultural potential.  Prime Minister Matata Ponyo Mapon made the claim in a speech to the parliament this week outlining his government’s ag]]> The new prime minister of the Democratic Republic of Congo says the country could halve its poverty rate in the next five years by exploiting its vast agricultural potential.  Prime Minister Matata Ponyo Mapon made the claim in a speech to the parliament this week outlining his government’s agenda. But, there are few details yet as to how the DRC is going to meet this target.

In his first speech to the Democratic Republic of Congo’s new parliament, Prime Minister Ponyo said that if the agricultural sector could increase its growth rate to six percent, then the rate of absolute poverty in the country could be cut by 50 percent by 2017.

Huge agricultural potential

Ponyo suggests there is great potential to double agricultural growth, from three percent to six percent.  He says the country is only farming seven million hectares of the 75 million hectares of arable land.

The new government has just been sworn into office and has not yet drawn up a budget, so there were no details in the prime minister’s speech Monday on how much funding will be allocated to agriculture.

Funding will have to be sharply increased, says Roger Kizungu, who works at the Congo’s National Institute for Agricultural Research. Kizungu says that the first condition for achieving six percent growth in agriculture is for the government to commit 10 percent of its budget to rural development. He says the Congo has already made that commitment, but in fact it is spending far less than that and less than two percent on agriculture.

Rural development includes spending on rural roads. The poor state of the road network is one of the biggest obstacles facing Congo’s farmers.

Government vs. donors

Kizungu says the second condition for achieving six percent growth in agriculture is for donors to let the government shoulder its responsibilities.  He says everyone agrees aid is needed, but that donors should not take over the state’s role, because the government would then wait for the donors to do everything.

He says donors have pledged that, if the government commits 10 percent of its budget to rural development, they would commit funds in the same proportion.

An opposition member of parliament, Martin Fayulu, questions whether agriculture really ranks high on the government’s list of spending priorities.

"The Ministry of Agriculture is ranked number 20 [in spending].  You see the place they have ranked agriculture.  There is no consistency.  This country was number one for palm oil in 1960s, and today Malaysia is exporting $20 billion every year in palm oil from the seeds they took from this country.  What’s the proposal for palm oil for this country?  Nothing."

Competing needs

A member of parliament with the ruling alliance, Patrick Muyaya, says that that this government is making a priority of improving services for the Congolese people, but there are many competing needs.

"You know we have a lot of challenges in our country, but the first is to give solutions for health problems, school problems, water and power.  That’s the needs our people have," he said.

In his speech, Prime Minister Ponyo told parliament that he would be watching closely the performance of all sectors, including the national electricity company.  As he said this, there was a power cut - one of several during his speech.

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China Internet Crackdown Continues With New Sina Weibo Guidelines http://global-business-center.com/r10846,China_Internet_Crackdown_Continues_With_New_Sina_Weibo_Guidelines.php http://global-business-center.com/r10846,China_Internet_Crackdown_Continues_With_New_Sina_Weibo_Guidelines.php Thu, 01 Jan 1970 01:00:00 +0100 GBC Team http://global-business-center.com/r10846,China_Internet_Crackdown_Continues_With_New_Sina_Weibo_Guidelines.php China's largest microblogging service is unveiling a controversial new set of guidelines that aims to officially restrict what its users can post online.

Sina Weibo, a Twitter-like service with 300 million users, has been under increasing government pressure in recent months to mor]]>
China's largest microblogging service is unveiling a controversial new set of guidelines that aims to officially restrict what its users can post online.

Sina Weibo, a Twitter-like service with 300 million users, has been under increasing government pressure in recent months to more aggressively censor its content.

Earlier this week, it unveiled a wide-ranging user contract that, among other things, forbids posting material that is "untrue," "threatens the honor of the nation," "promotes evil teachings, or "destroys societal stability."

Many Chinese web users have reacted negatively to the guidelines, saying they will restrict free speech. But others say the contract, which is to be implemented later this month, simply places in writing restrictions that are already in place.

Chad Catacchio, a U.S.-based blogger who follows China tech stories, says that the move could even be viewed positively, because it represents a rare step towards more transparency in China's often subjective world of Internet censorship.

"These kinds of rules have existed for a while on the Internet in China, so I wouldn't say anything [in the contract] is necessarily a surprise," said Catacchio.  "I think one thing that is on the positive side is that they are putting it in writing publicly, but what that means and if that's good for the users, that's yet to be seen."

Sina Weibo, which already employs a large "rumor control team," recently pledged to work more with government censors to squash out online rumors.

Last month, it was among several Chinese microblog services punished by the Chinese government for failing to adequately restrict false rumors of a political coup.

China's massive network of Internet censors, dubbed the Great Firewall of China, has been working overtime in recent months as the date for a once-in-a-decade leadership transition in the Communist Party draws closer.

In March, Beijing introduced new rules requiring all of the country's microblog users to register using their own names, in an effort to better control what is being posted online. But many of the country's microblog services have struggled to enforce the rule.

Popular Western social media websites such as Facebook and Twitter are blocked in China.

Some information for this report was provided by AP, AFP and Reuters.

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