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Connecting Armenia’s Regions with Technology to Ensure Greater Opportunities for Young People

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Photo: Arevik Badalyan/World Bank

Just over two months ago, an economist, an IT specialist, a historian and a linguist teamed up at the Vanadzor Technology Center to establish a startup for developing mobile applications. Their first creation, “Digital Menu”, is an app that will help customers in restaurants and cafes to choose dishes and pay online, and it has already started attracting potential clients.

Irina Ghazazyan, a former historian, is the team lead and the driving force behind the startup. She describes how her life has taken a whole new direction since the opening of the Vanadzor Technology Center in late 2016. “We learned programming, set up our own venture, and found space for work and business opportunities,” says Irina.

Vanadzor is the third largest city in northern Armenia and the capital of Lori province. Like other urban areas beyond the country’s capital Yerevan, the city has suffered from industrial decline. Today, its landscape blighted by a huge Soviet-era chemical plant, Vanadzor experiences especially high rates of poverty and long-term youth unemployment.

Patvakan Hakhinyan left Yerevan for Vanadzor some years ago and is today the Business Development Manager for Vanadzor Technology Center. He proudly shows visitors the Center’s labs, shares success stories, and outlines the opportunities that the Center provides to the young generation in Lori region.

“It was obvious that the Center would become an educational hub that offered consultations and workshops, and would house startups and businesses,” says Patvakan. “We are changing the profile of Vanadzor by filling the gap in the quality of IT education and providing new prospects in the city and the region.”

So far, eight companies have opened their offices at the Center, their work ranging from IT to architecture.

“Our training courses are identifying more and more young talent, although the companies that want to open in Vanadzor are also looking for professionals with experience. We need time and patience, but we are on the right track,” says Patvakan.

Hi-Tech Gateway is one of the pioneer companies at the Center. A branch of the American company, ConnectTo, it focuses on research and creating new technologies for the market. Svetlana Jaghatspanian, the company’s team leader, says that the possibilities and services provided by the Center can really help their business to grow. They have hired 30 people so far, while another 8 will be employed soon.

“The Center is unique for Vanadzor, as it is where young people can put their dreams into action,” Svetlana says.

Each month, around 40 people participate in training sessions at the Vanadzor Technology Center. In addition to the trainers based there, professional trainers travel to Vanadzor from Yerevan – they discuss market requirements with participants and outline the knowledge and skills required for employability. The young students are so focused and attentive, they even turn off their phones for a while!

Omni Code, another growing company, provides web services and hosts workshops and training courses. “After our classes, four people got jobs, and seven more will join us in the next round,” says Yuri Virabyan, co-founder of Omni Code.

The Vanadzor Technology Center is open to anyone who is creative and wants to grow professionally – people like Babken Mkhitaryan and Arman Vardanyan, each of whom has a space and a computer at the Center. “We are working on an app that will connect taxi services to their customers,” says Babken. “This will be a more competitive, multifunctional and comprehensive app than the ones currently available on the market.”

The Center is a safe, supportive and fun environment where young people can come together as a community to learn and explore opportunities for future employment. Starting from the age of 10, children can learn the basics of programming. Almost 3,000 students from the region have so far attended these classes.

Vahe Aloyan is a 16-year-old high school student and he also works for the company X-Tech. A true polyglot, he knows eight programming languages. At the age of 14, Vahe designed his first game and won a contest organized by the Vanadzor Technology Center. His second game won an award for best design.

“My desire is to work for a company that produces only games,” Vahe says. “But my biggest dream is to see the gaming industry in Armenia fully developed and supporting the economy.”

In Shirak region, the Gyumri Technology Center (GTC), established four years ago with support from the World Bank’s E-Society and Innovation for Competitiveness project, has been very successful. Currently, the GTC houses 28 companies with over 200 employees and up to 2,000 students, and has business connections with over 10 countries. It is not a local phenomenon, but a regional IT hub.

The Vanadzor Technology Center could follow the same path to success.

Both Technology Centers demonstrate the empowerment of regional development beyond the capital city, and wide-ranging decentralization of the IT industry to the provinces. The right mix of skills and talent is being created locally and nationally, through investments that are economically and socially rewarding.

Source: World Bank

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ILO: Developing countries should invest US$1.2 trillion to guarantee basic social protection

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To guarantee at least basic income security and access to essential health care for all in 2020 alone, developing countries should invest approximately US$1.2 trillion – on average 3.8 per cent of their GDP – says a new ILO policy brief.

Since the onset of the COVID-19 pandemic  the social protection financing gap has increased by approximately 30 per cent according to Financing gaps in social protection: Global estimate and strategies for developing countries in light of the COVID-19 crisis and beyond .

This is the result of the increased need for health-care services and income security for workers who lost their jobs during the lockdown and the reduction of GDP caused by the crisis.

The situation is particularly dire in low-income countries who would need to spend nearly 16 per cent of their GDP to close the gap – around US$80 billion

Regionally, the relative burden of closing the gap is particularly high in Central and Western Asia, Northern Africa and Sub-Saharan Africa (between 8 per cent and 9 per cent of their GDP).

Even before the COVID-19 crisis, the global community was failing to live up to the social protection legal and policy commitments it had made in the wake of the last global catastrophe – the 2008 financial crisis.

Currently, only 45 per cent of the global population is effectively covered by at least one social protection benefit. The remaining population – more than 4 billion people – is completely unprotected.

National and international measures to reduce the economic impact of the COVID-19 crisis have provided short-term financing assistance. Some countries have sought innovative sources to increase the fiscal space for extending social protection, like taxes on the trade of large tech companies, the unitary taxation of multinational companies, taxes on financial transactions or airline tickets. With austerity measures already emerging even with the crisis ongoing, these efforts are more pressing than ever, the study says.

“Low-income countries must invest approximately US$80 billion, nearly 16 per cent of their GDP, to guarantee at least basic income security and access to essential health care to all,” said Shahrashoub Razavi, Director of the ILO’s Social Protection Department. “Domestic resources are not nearly enough. Closing the annual financing gap requires international resources based on global solidarity.”

Mobilization at the international level should complement national efforts, says the ILO. International financial institutions and development cooperation agencies have already introduced several financial packages to help governments of developing countries tackle the various effects of the crisis but more resources are needed to close the financing gap, particularly in low-income countries.

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No More Business as Usual: Green Deal Needed in Europe’s Recovery

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Chief executive officers (CEOs) and senior representatives of around 30 European companies expressed today their support for the European Green Deal as a growth strategy for Europe with a joint statement. The COVID-19 recovery is the opportunity to reset Europe’s economy with a new growth model on the path to net-zero emissions, based on circularity, renewable energy and low-carbon industries.

The CEOs said they firmly believe the way out of the current crisis cannot be more of the same. They commit to reducing their carbon footprint and to embrace new production and work models to play their part in decarbonizing Europe’s economy and achieving climate-neutrality by 2050.

“The COVID-19 pandemic requires a massive and coordinated economic stimulus to both mitigate the economic repercussions of the pandemic and, above all, to accelerate the necessary transition to a low carbon economy. We have to take more and faster action with more emphasis on sustainability and circularity. The European Green Deal presents an opportunity to do just this. It requires a strong partnership between business, politics and society. Together we can make Europe the greenest, most innovative and inclusive region in the world, where the Green Deal should provide jobs and economic prosperity at the same time. The action plan announced today by the WEF CEO Action Group for the European Green Deal is an important step with concrete actions to support this agenda.” commented the CEO Action Group Co-Chairs, Axa’s CEO Thomas Buberl and Feike Sybesma, Royal DSM’s Honorary Chairman.

“The EU is putting in place the largest and greenest stimulus plan ever. It is the right time for businesses to show how they can effectively contribute to achieving the EU’s climate targets. As a next step, this group is working on lighthouse projects, which demonstrate how to step up action in areas such as sustainable transport and mobility, food and agriculture and renewable energy markets,” Børge Brende, President of the World Economic Forum, added.

The EU Commission President Ursula von der Leyen, in her State of the European Union speech today, is expected to reassert the Green Deal as a central element of Europe’s growth strategy and the region’s recovery efforts. Frans Timmermans, the European Commission’s Executive Vice-President in charge of the European Green Deal, welcomed the CEO statement: “The Green Deal is a once-in-a-generation effort to transform our economy. It is crucial to have European businesses on board, as we’ll need every company to contribute to climate neutrality and help deliver on the Green Deal. I very much support the efforts of the CEO Action Group to implement the European climate agenda.”

CEOs and senior representatives supporting the statement are:

  • Michael Altendorf, Co-Founder and Chief Executive Officer, Adtelligence GmbH, Germany
  • Marco Alverà, Chief Executive Officer, Snam S.p.A., Italy
  • Claudia Azevedo, Chief Executive Officer, SONAE SGPS SA, Portugal
  • Kai Beckmann, Chief Executive Officer, Performance Materials, Member of the Executive Board, Merck, Germany
  • Dick Benschop, President and Chief Executive Officer, Royal Schiphol Group, Netherlands
  • Jesper Brodin, Chief Executive Officer, Ingka Group (IKEA), Netherlands
  • Thomas Buberl, Chief Executive Officer, AXA SA, France*
  • Levent Cakiroglu, Chief Executive Officer, Koç Holding AS, Turkey
  • Bertrand Camus, Chief Executive Officer, SUEZ, France
  • Liam Condon, President, Bayer Crop Science, Bayer AG, Germany
  • Claudio Descalzi, Chief Executive Officer, Eni SpA, Italy
  • Hanneke Faber, President, Foods and Refreshment Division, Unilever, Netherlands
  • Camilla Hagen Sørli, Member of the Board, Canica AS, Norway
  • André Hoffmann, Vice-Chairman, F. Hoffmann-La Roche Ltd, Switzerland
  • John Holland-Kaye, Chief Executive Officer, Heathrow Airport Holdings Limited, United Kingdom
  • Svein Tore Holsether, President and Chief Executive Officer, Yara International ASA, Norway
  • Paul Hudson, Chief Executive Officer, Sanofi, France
  • Nuno Matos, Chief Executive Europe, HSBC Holdings Plc, United Kingdom
  • Gerald Podobnik, CFO Corporate Bank, Deutsche Bank AG, Germany
  • Jonas Prising, Chairman and Chief Executive Officer, ManpowerGroup, USA
  • Nicolas Namias, Chief Executive Officer, Natixis, France
  • Yves Robert-Charrue, Member of the Executive Board and Head of Switzerland, Europe, Middle East & Africa, Bank Julius Baer & Co. Ltd, Switzerland
  • Michael Schernthaner, Chief Executive Officer, Schur Flexibles Group, Austria
  • Veronica Scotti, Chairperson, Public Sector Solutions, Swiss Re Management Ltd, Switzerland
  • Marco Settembri, Executive Vice-President and Chief Executive Officer, Europe, Middle East and North Africa, Nestlé, Switzerland
  • Feike Sybesma, Honorary Chairman, Royal DSM NV, Netherlands*
  • Jean-Pascal Tricoire, Chairman and Chief Executive Officer, Schneider Electric, France
  • Loic Tassel, President, Europe, Procter & Gamble, Switzerland
  • Bernhardt von Spreckelsen, Fashion Photographer & Developing Hyper Luxury, Brand Owner, Bernhardt von Spreckelsen, United Kingdom

The CEO Action Group for the European Green Deal, launched in autumn 2019 in cooperation with the World Economic Forum and the European Commission, seeks to mobilize business to step up commitments towards achieving the Green Deal and the EU greenhouse gas reduction targets for 2030 in order to drive a clean and inclusive economic recovery.

*Co-chairs of the CEO Action Group for the European Green Deal

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Indigenous People in World Affairs

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In late May, the world’s biggest iron ore miner Rio Tinto legally destroyed two historically significant sacred caves in a Western Australian state, against the wishes of the traditional Aboriginal owners, which sat atop a high-grade ore body it planned to mine.

The destruction distressed the local Puutu Kunti Kurrama and Pinikura people (PKKP) and fuelled a wider public outcry that led to an inquiry into how the blast was legally sanctioned.

The destruction of the sites, which showed evidence of 46,000 years of continual habitation, occurred just as the Black Lives Matter protests trained a global spotlight on racial injustice.

The inquiry is looking at how a culturally significant site came to be destroyed, the processes that failed to protect it, the impacts on traditional owners, and the legislative changes required to prevent such incidents from recurring.

Rio is conducting its own independent board review into the incident, due to be completed in October, and has pledged to make the findings public.

Aboriginal cultural heritage is a fundamental part of Aboriginal community life and cultural identity. It has global significance and forms an important component of the heritage of all Australians.

But the destruction of this culturally significant Aboriginal site is not an isolated incident. Rio Tinto was acting within the law.

In 2013, Rio Tinto was given ministerial consent to damage the Juukan Gorge caves. One year later, an archaeological dig unearthed incredible artefacts, such as a 4,000-year-old plait of human hair, and evidence that the site was much older than originally thought.

But state laws let Rio Tinto charge ahead nevertheless. This failure to put timely and adequate regulatory safeguards in place reveals a disregard and disrespect for sacred Aboriginal sites.

Another example is the world’s leading steel and mining company ArcelorMittal.

ArcelorMittal needs to move beyond good intentions on environmental and social improvements and turn words into deeds. Despite its rhetoric on social responsibility, the company continues to destroy the environment, risk people’s lives and displace local communities, according to a new report launched in 2019 by the Global Action on ArcelorMittal coalition to coincide with the company’s annual shareholder meeting in Luxembourg.

Comprising case studies from seven countries ranging from the Czech Republic to India and South Africa, the report also reveals new problems emerging around ArcelorMittal’s iron ore-mining operations in Nimba County, Liberia, including unclear resettlement plans for local people, a lack of permanent employment from the mine, threats to the Mount Nimba Nature Reserve, and a questionable donation of 100 pickup trucks.

The action of another manufacturer also raises controversy. Anglo American is a global mining company with a portfolio that spans diamonds, platinum, copper, iron ore and more. The emissions from a new Anglo American underground mine project in Chile could be catastrophic for the nation, ecologists reveal. The multinational company has so far avoided scrutiny of the project by hollowing out regional environmental organisations and sharing erroneous information with the scientific community. Anglo American, a London Stock Exchange listed company, has tunnelled under a Chilean glacier, with a plan to excavate copper and approximately 166 million tonnes of raw material from beneath the Yerba Loca nature sanctuary. This is equivalent to the volume of 127 Costanera Centre towers—South America’s tallest building, which sits at 300 metres and is located in Santiago. It then plans to backfill the entire mine with approximately 114.9 million tonnes of concrete.

The carbon footprint of the 3.4 million tonnes of cement required will be equivalent to 3.2 percent of the South American nation’s 2016 carbon dioxide equivalent emissions, or the collective carbon dioxide emissions of 20 of the world’s least-polluting countries. The number rises to 9.7 percent if Anglo American’s plan to extend the life of the mine from 2036 to 2065 is agreed.

We have more good examples.

The third largest steelmaker in the world is Nippon Steel. Each year beginning from 2015, the company has conducted a forest environment preservation activity—Greenship Action. In order to protect the valuable nature in the Tokyo metro area, with the cooperation of NPOs and members of the local forestry industry, Nippon Steel have been performing thinning work and creating access roads in the mountain forests of Ome City in Tokyo. Although cutting down trees may seem like environmental destruction, if the forest is left on its own, the trees will grow increasingly dense, resulting in a dark and unhealthy forest due to the lack of sunlight penetration. By identifying necessary and unnecessary trees, and removing the unnecessary ones, a suitable amount of sunlight can enter, restoring an environment that allows a diverse range of woodland life to coexist. This activity is a valuable opportunity for the participants to personally experience and understand the importance of contributing to society.

The Russian company Nornickel is a global leader in the production of the mineral nickel. Murmansk Oblast and the Taymyr Peninsula have been the homeland for indigenous peoples of the Arctic for generations and are the principal sites for the company’s activities. The Sámi, Nentsy, Nganasan, Entsy, Dolgan, and Evenki communities have preserved the traditional life, culture, and economy of Northern peoples, including reindeer herding, hunting, fishing, and gathering. Healthy and productive ecosystems, both on land and water, are the basis of indigenous people’s culture and identity, supported by the company.

In particular, the company allocates funds for the construction and repair of housing for indigenous peoples, the improvement of small and remote settlements in Taimyr, and the provision of food for the children of reindeer herders. Norilsk Nickel also renders assistance to the indigenous population with air transportation of goods to remote villages, supplies of building materials and fuel.

This article takes a critical look at how large-scale mining works in the emerging global economy. The strategies adopted by governments around the world in recent years to encourage foreign investment in exploration and production of minerals raise questions about how multinational mining companies are approaching environmental and related challenges. And the role of ecology in the policy of companies should only grow.

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