Economic Transition into the ‘New Normal’
Bernardo Calzadilla-Sarmiento, Director at the United Nations Industrial Development Organization (UNIDO) has participated in a webinar entitled “Economic Transition into the ‘New Normal’: How can International Organizations help European Economies Bounce Back?”
The webinar was convened by The Brussels Timesand Huawei Technologies and featured a high-level panel, including Isabelle Mauro, Director, Head Telecommunications, World Economic Forum; Abraham Liu, Vice-President of the European Region, Huawei; Jaroslaw Ponder, Head of Europe Office, International Telecommunication Union; and Nada Sirotic, Counsellor, Permanent Representation of Croatia to the European Union.
Calzadilla-Sarmiento who is Director of UNIDO’s Department of Trade, Investment and Innovation noted a very strong downward pressure on jobs due to the pandemic, with 1.6 billion people at risk, while also observing disruption to global value chains, investment and demand. He observed that the outbreak presented a challenge to implementation of the Sustainable Development Goals (SDGs), with 24 million people at risk of falling into poverty as a result, and an estimated 3.6 billion people still lacking access to Internet connectivity.
He also stated that women are particularly affected by the global disruption caused by the pandemic, making Goal 5 on gender equality and women’s empowerment more difficult to achieve, while additional medical waste also impacts on environmentally-oriented goals.
Calzadilla-Sarmiento stressed that the Fourth Industrial Revolution would be “at the core” of the “new normal” following the outbreak, with disruptive technologies such as robotics, 3D printing and big data leading to new issues for policymakers and regulators.
“The data sector is coming on very strongly, but we need the regulatory framework to decide how we go about it,” he said, adding,. “Artificial intelligence has to be for the good…we have to put technology on the right track for bringing it to our society, not leaving anyone behind.,”
Standardization will be particularly important, he suggested, especially finalizing international standards on innovation management systems. According to Calzadilla-Sarmiento, UNIDO is prioritizing industrial transition for manufacturers, especially to relevant sectors such as mask and ventilator production, as outlined in the Organization’s response paper to the outbreak, “Responding to the Crisis: Building a Better Future”. He also cited “three C’s” for rebuilding trust in the international system and digital networks- confidence, connectivity and collaboration.
Isabelle Mauro emphasized the importance of regulation and dialogue between the public and private sectors. “We really need to look at being a bit more innovative in the way we regulate and the way we make policy, which is a much stronger dialogue between public and private sector. Because we are going into territories that are sometimes new or less known, both sides [should] come together to make sure we don’t hinder innovation, but that we really promote…an environment that is more conducive to innovation,” she urged.
Jaroslaw Ponder stressed the need for a systemic approach to digital upskilling and addressing the digital divide.
Abraham Liu noted that the digital economy is growing three times faster than other sectors, and underlined how artificial intelligence is key to providing economic and social solutions in the post-COVID-19 era, while Nada Sirotic stressed the need for greater international cooperation, data sharing and trust.
Confrontation between US and Chinese ships in South China Sea
A US Navy destroyer sailed near the disputed Paracel Islands in the South China Sea and sparked yet another confrontation between the US and China for the second day in a row, informs London’s ‘The Independent’.
The first confrontation occurred when the USS Milius guided-missile destroyer sailed near the group of islands.
Next day the ship was spotted again in the vicinity of the islands, as part of a “freedom of navigation operation” challenging requirements from China, Taiwan, and Vietnam, that require advance notification or permission before a military vessel can pass through.
China said that the US’s actions violate its sovereignty and security and said its navy and air force had forced the American vessel away, something the US military has denied. Beijing also warned the US of “serious consequences”.
The latest incident comes as tensions between the US and China have plumetted to new lows.
“The United States challenges excessive maritime claims around the world regardless of the identity of the claimant,” said US 7th Fleet spokesman Luka Bakic.
China’s Ministry of National Defense responded by accusing the US of “undermining the peace and stability of the South China Sea”.
“The act of the US military seriously violated China’s sovereignty and security, severely breached international laws, and is more ironclad evidence of the US pursuing navigation hegemony and militarizing the South China Sea,” ministry spokesman Tan Kefei said.
He said China will take “all necessary measures” to ensure security, but did not elaborate further.
In recent years, China has become increasingly assertive in the region, prompting the US to push back.
The South China Sea is an important waterway for global trade, with around $5 trillion in trade passing through each year. Additionally, the area holds valuable fish stocks and undersea mineral resources.
Seymour Hersh: The cover-up
This is a new comment of American journalist Seymour Hersh: “It’s been six weeks since I published a report, based on anonymous sourcing, naming President Joe Biden as the official who ordered the mysterious destruction last September of Nord Stream 2, a new $11-billion pipeline that was scheduled to double the volume of natural gas delivered from Russia to Germany.
The story gained traction in Germany and Western Europe, but was subject to a near media blackout in the US.
Two weeks ago, after a visit by German Chancellor Olaf Scholz to Washington, US and German intelligence agencies attempted to add to the blackout by feeding the New York Times and the German weekly Die Zeit false cover stories to counter the report that Biden and US operatives were responsible for the pipelines’ destruction.
Press aides for the White House and Central Intelligence Agency have consistently denied that America was responsible for exploding the pipelines, and those pro forma denials were more than enough for the White House press corps.
There is no evidence that any reporter assigned there has yet to ask the White House press secretary whether Biden had done what any serious leader would do: formally “task” the American intelligence community to conduct a deep investigation, with all of its assets, and find out just who had done the deed in the Baltic Sea.
According to a source within the intelligence community, the president has not done so, nor will he. Why not? Because he knows the answer.
In early March, President Biden hosted German Chancellor Olaf Scholz in Washington. The trip included only two public events — a brief pro forma exchange of compliments between Biden and Scholz before the White House press corps, with no questions allowed; and a CNN interview with Scholz by Fareed Zakaria, who did not touch on the pipeline allegations.
The chancellor had flown to Washington with no members of the German press on board, no formal dinner scheduled, and the two world leaders were not slated to conduct a press conference, as routinely happens at such high-profile meetings. Instead, it was later reported that Biden and Scholz had an 80-minute meeting, with no aides present for much of the time.
There have been no statements or written understandings made public since then by either government, but I was told by someone with access to diplomatic intelligence that there was a discussion of the pipeline exposé and, as a result, certain elements in the Central Intelligence Agency were asked to prepare a cover story in collaboration with German intelligence that would provide the American and German press with an alternative version for the destruction of Nord Stream 2.
In the words of the intelligence community, the agency was “to pulse the system” in an effort to discount the claim that Biden had ordered the pipelines’ destruction…” stresses Seymour Hersh.
FORBES: Where is the Russian banking crisis?
“Sanctions were supposed to kill the Russian financial sector. It did, and it didn’t. Where is the Russian banking crisis?” – FORBES is perplexed.
Yes, sanctions have hurt Russia’s financial institutions. But a Russian banking crisis, one that looks like we have seen in the U.S. recently with Silicon Valley Bank and in Switzerland with Credit Suisse, has not occurred.
There were never any runs on Russian banks. The ruble strengthened. And while most banks are protected by the state – led by Sberbank and VTB – the Russian Central Bank has spent much of the last decade working to clean up the financial system.
For this reason, Russian banks have survived the West’s sanctions regime and stock market delistings better than anyone would have imagined. For a cynical Russian, watching Silicon Valley Bank and Credit Suisse burn down while their bankers are gainfully employed is like smirking before the camera lens in front of a burning building.
Had the sanctions come at the time when the Russian Central Bank was cleaning up its “zombie banks” – all hell would have broken loose. But seeing how much of that mess was swept away prior to the 2022 sanctions regimes taking hold, Russia’s banks remain safe and sound, even if Russian investors in those banks have lost their shirt.
The sanctions policy, the hardest ever taken out on Russia, is 13 months old. New ones pop up regularly. It is unclear what can possibly be next, as Russia’s financial institutions have already been largely cut off from the Western system.
Russia’s financial sector, and its banks at home, aren’t making headlines like banks in the U.S. and Europe are. They have withstood the onslaught of sanctions.
They’ve lost their European and U.S. assets, which will not be recovered for years to come, if ever. Sberbank CEO Herman Gref said in press reports that Sberbank is “the most attacked entity” in the country, which experiences “unprecedented challenges in terms of complexity and power.” He said Sberbank lost nearly all of its assets abroad, leading to massive write-downs.
Yet, Russian president Vladimir Putin smirks at the burning buildings of Credit Suisse and the lost $200 billion in Silicon Valley Bank deposits, needing unprecedented FDIC support to protect account holders. The bank is now insolvent. His biggest banks remain only because most of Russia’s banks over the years have been folded and rendered insolvent. And a danger to the Russian financial system was liquidated.
“Thanks to the professional actions of our banking community, government agencies, and the efforts of the central bank, I want to emphasize that we managed to overcome all these (sanctions) difficulties in general,” Putin reportedly said in Moscow earlier this month after meeting with Sberbank’s CEO. He said that Sberbank’s current stable position was “a good signal for the whole economy.”
With sanctions expected to remain for a long time to come, will Russia’s heavily sanctioned banks fold one day, too?
“Who knows what will happen in Russia, because we all only know what we read in the press and what we read in the press is that Russia did a smart job handling their banks pre-sanctions and so after sanctions they have managed okay,” says famous commodities investor Jim Rogers from his home in Singapore, who has been a director of Russian fertilizer company PhosAgro. “We saw the ruble go down when sanctions were first imposed, then it went up. So in that case alone, the market tells me that somebody in Russia did something right,” he says.
Aurat March 2023 & Agenda Setting
In history, women are portrayed in default of men. The women in primitive societies were freer and more emancipated than...
Confrontation between US and Chinese ships in South China Sea
A US Navy destroyer sailed near the disputed Paracel Islands in the South China Sea and sparked yet another confrontation...
Seymour Hersh: The cover-up
This is a new comment of American journalist Seymour Hersh: “It’s been six weeks since I published a report, based...
The dilemma of China’s role as Mediator in the case of Ukraine
Since the full-scale Russo-Ukrainian war unfolding after 24 February 2022, China has maintained so-called neutral stance on the conflict, passively...
China Gains Political Clout in the Middle East at the expense of the US’s Indispensability
There is yet another détente in the Middle East, but it is neither between Israel and Arabs nor has the...
Breaking Diplomatic Norms: Indian Response to OIC & Turkish Support for Kashmir Issue
Recently, the Indian government has been facing backlash for its highly undemocratic and derogatory remarks on Turkey’s support to the...
Playing The New Game of Geoeconomics
In these contemporary times, state actions are now rendered by the emergence of ‘Geo Economics’. Implying the term coined by...
Middle East3 days ago
Arab plan for Syria puts US and Europe in a bind
Economy3 days ago
Impact of technological advancements on International Trade and Finance
Finance3 days ago
Credit Suisse Collapse – this is a robbery of Arab investors
Middle East3 days ago
Iraq’s Geopolitics, Key Factor for US, EU Energy Security Strategies
South Asia4 days ago
India’s G20 Leadership: Challenges and Opportunities
Southeast Asia4 days ago
Indonesia: Climate Change Challenges
Russia4 days ago
The Political and Diplomatic Implications of the ICC’s Arrest Warrant for Vladimir Putin
New Social Compact4 days ago
Dance and games offer glimpses of life – and death – in ancient Italy