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As Businesses Embrace Sustainability, a Pathway to Economic Reset Emerges

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In the midst of a deep recession brought on by the COVID-19 pandemic, there is a growing consensus that the global economy is due for a reset. Business leaders are optimistic that rather than slide back into normality, as the leading economies did after the 2008-2009 financial crisis, the major social, political and climatological ruptures of recent years have driven a growing awareness that as the world emerges from the pandemic, it will not be business as usual.

The urgent need for far-reaching change, however, is matched by the enormity of the challenges. “What this pandemic has done so far is not really change the future yet, but it has very much revealed the present,” said Achim Steiner, Administrator, United Nations Development Programme (UNDP).

“Our main measures of success remain solely financial,” said Alan Jope, Chief Executive Officer of Unilever. “It’s bizarre and it’s outdated.” He called for “21st-century tools for a 21st-century environment”, noting that: “The definition of success for a country, which is usually GDP, and all our traditional financial metrics are built on environmental degradation and growing inequality.”

Along with mandating non-financial reporting, Jope called for four other changes to the way business is done. “It’s really believing that operating to the benefit of multiple stakeholders works,” he said. “Serving customers properly, looking after employees, being fair with suppliers, and making a positive contribution to society and the health of the planet will lead to better financial returns.”

Anne Finucane, Vice-Chairman of Bank of America, echoed the assertion that companies can do well by doing good. “In recent years, there’s a fair amount of data that’s been put forward to demonstrate that if ESG is calculated into the behaviour of a company that the company itself does better – less bankruptcy, higher satisfaction with its clients and customers, and even sometimes higher multiples.”

“We are hearing our shareholders. We are hearing our stakeholders. They are broader than just economic. They are looking for us to be citizens of the world,” she said.

Noting that one of the changes likely to endure after the pandemic is the acceleration of reliance on digital technology, Bradley Smith, President of Microsoft, argued that while business will clearly continue to have an important role to play in upskilling and reskilling workers, governments have an important role to play in facilitating advanced training in technology. “If you look back at the last 20 years, after an upsurge in employer investments in employing skilling in the late 1990s we’ve seen 20 years of decline and stagnation by employers investing in the skilling of their employees,” Smith said. “We need to have a recovery that is led in part by small business. We’re going to need to help small businesses onboard new employees. We’re going to need to help small businesses invest in skilling of their employees, and this is a huge opportunity I think for governments to think anew about tax credits and other incentives they can provide.”

One of the biggest obstacles, participants agreed, is to dispel the idea that there is an either-or choice between delivering profits and growth, on the one hand, and on the other, giving primacy to the interests of stakeholders – employees, customers, communities, and the environment. Jope challenged that assumption. “We have to break that paradigm. We have to build the evidence that offering sustainable solutions to consumers, that conducting yourself with decency makes you an attractive employee, that treating suppliers well, that reducing your environmental footprint actually lowers costs – and all these things drive better financial performance,” he said. “Then there will be less suspicion that there will always be a tradeoff between the [sustainable goals] and better financial performance.”

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Development

Vaccination, Jobs, and Social Assistance are All Key to Reducing Poverty in Central Asia

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As the pace of economic recovery picks up, countries in Central Asia have an opportunity to return to pre-pandemic levels of poverty reduction – if they put in place the right policies. This was the overall message shared by World Bank economists today at a regional online event “Overcoming the Pandemic and Ending Poverty in Central Asia”.

In the early 2000s, Central Asian countries were among the world’s best performers in poverty reduction. Starting in 2009, however, the pace of progress began to slow and even stagnated in some of the countries. The COVID-19 pandemic impacted a region already struggling to generate inclusive growth and end extreme poverty. Now in the second year of the pandemic, poverty rates in Central Asia are falling again, but with high inflation and low vaccination rates, the poor and the most vulnerable continue to suffer from food insecurity, uncertainty, and limited employment opportunities, especially for women.

“Central Asia is recovering from the first shocks of the pandemic, albeit in uneven ways,” said Will Seitz, World Bank Senior Economist in Central Asia. “Migration and remittances, key drivers of poverty reduction in the Kyrgyz Republic, Tajikistan, and Uzbekistan, are quickly returning to 2019 levels. Labor markets are also recovering, and work disruptions are much less common. However, the region is yet to get on a stable poverty reduction path.”

Among policy priorities to reduce poverty, the World Bank is focused on three key areas: widespread vaccination, increasing employment and wages, and strengthening social assistance programs to support the most vulnerable. To support labor market recovery, the World Bank economists outlined short-term and medium-term measures, including the need to invest in green jobs and encouraging the creation and growth of firms.

It was also stressed that employment alone will not address all drivers of poverty, and strong safety nets are essential to protect the most vulnerable. Compared with other middle-income countries, Central Asian governments typically provide smaller shares of their populations with social assistance.

“Along with ensuring fair, broad access to effective and safe COVID-19 vaccines, Central Asian countries need to urgently address vaccination hesitancy, as it threatens to slow down the recovery,” said Tatiana Proskuryakova, World Bank Regional Director for Central Asia. “For every million people vaccinated, global GDP recovers on average nearly $8 billion. We are expecting advanced economies with relatively high vaccination rates to demonstrate much better growth rates than developing economies with low vaccination rates.”

Among the main reasons behind vaccine hesitancy in Central Asian countries are worries about vaccine contraindication and safety. While people with pre-existing health conditions in other countries are usually prioritized for vaccination, in the Central Asia region they are more likely to be hesitant to get vaccinated. Providing the public with accurate information on the safety of vaccines and encouraging people with pre-existing health conditions to be vaccinated may help address hesitancy issues.

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Why Traders Should Never Miss Forex Trading Investment Opportunities

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Trading forex is a great opportunity to make money if you know how to do it right. Some of the top forex traders are often asked about tactics and tricks they use that have helped them to make great profits. Investment opportunities can be fully used only when you know how to turn such opportunities into profit.

What does it take to turn investment opportunities into trading profits? Here are some things which you can do to make a difference and have helped several people in making profits in the long run.

A Strong Trading Plan:

Ask any successful trader and you will be told that a trading plan is of utmost importance. One needs to plan quite systematically before trading or when one starts trading. This trading plan usually has a strategy which is followed with great caution. This trading strategy should also be tested, and adjustments made accordingly. If everything goes well, the strategy can be repeated whenever any opportunity comes along.

Managing Risk:

Capital management is an essential part of forex trading success. If any trader doesn’t know how to manage risks, the trader will not be able to make it long. No matter how lucrative the investment opportunities seem to be, a trader should not trade money which the person cannot afford to lose. It is extremely important to ensure that the risks are sensible because that will keep him going.

The Importance of Being a patient Trader:

If you wish to earn in the long run, you need to be patient. It does take time to develop any currency trading plan. It also takes time to develop different skills. Thus, any trader needs to wait for the right opportunities. If a trader hurries or rushes, the decision can be wrong which will affect trading.

The Mind has to be Clear:

Experts reveal that success and failure often depend on the mindset of the individual. If the trading psychology of the trader is not as it should be, profitability will become a distant dream. However, the sad part is that most traders do not consider this as a fundamental truth. There are many expert traders who do meditation or yoga so that they ensure that they have a healthy mind.

Disciplined Actions:

To be successful in any sphere of life, one needs to be disciplined and exercise caution. For a successful trading career, a trader should be consistent and should be learning regularly so that mistakes can be avoided. If a trader lacks discipline, it may lead to trading errors which will result in losses in the future.

Trading Journal Can Help:

There are many experts who suggest the use of trading journals. Such smart traders work as record keepers which helps them in future. For example, when they win a trade, they have everything recorded in the journal. Thus, they are aware how they are winning and why they are winning. Thus, this way they are aware of the strategies that can help them in winning trades and the strategies which can cause them losses.

If any trader can take note of all details such as different conditions for entry and exit, it helps in trades and targets.

Overtrading Can be Risky

At times traders are tempted to overtrade with the hope of making more profits. However, experts believe that overtrading should be avoided because it leads to trading mistakes and errors. Thus, traders need to ensure that they are patient and do not do things that will make it risky.

Thus, investment decisions should be made wisely and cautiously.

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Energy News

Sustainable transport key to green energy shift

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With global transport at a crossroads, government leaders, industry experts, and civil society groups are meeting in Beijing, China, for a UN conference to chart the way forward to a more sustainable future for the sector, and greater climate action overall. 

The three-day UN Sustainable Transport Conference, which opened on Thursday, will examine how transportation can contribute to climate response, economic growth and sustainable development. 

It is taking place just weeks before the COP26 UN climate change conference in Glasgow, Scotland. 

In remarks to the opening, UN Secretary-General António Guterres underlined what is at stake. 

“The next nine years must see a global shift towards renewable energy. Sustainable transport is central to that transformation,” he said.  

The move to sustainable transport could deliver savings of $70 trillion by 2050, according to the World Bank.   

Better access to roads could help Africa to become self-sufficient in food, and create a regional food market worth $1 trillion by the end of the decade. 

Net-zero goal 

The COVID-19 pandemic has revealed how transport is “far more than a means of getting people and goods from A to B”, the UN chief said.

Rather, transport is fundamental to implementing the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change, both of which were “badly off-track” even before the crisis. 

The Paris Agreement aims to limit global temperature rise to 1.5 degrees Celsius, but the door for action is closing, he warned. 

“Transport, which accounts for more than one quarter of global greenhouse gases, is key to getting on track. We must decarbonize all means of transport, in order to get to net-zero emissions by 2050 globally.” 

A role for everyone 

Decarbonizing transportation requires countries to address emissions from shipping and aviation because current commitments are not aligned with the Paris Agreement. 

Priorities here include phasing out the production of internal combustion engine vehicles by 2040, while zero emission vessels “must be the default choice” for the shipping sector. 

“All stakeholders have a role to play, from individuals changing their travel habits, to businesses transforming their carbon footprint,” the Secretary-General said. 

He urged governments to incentivize clean transport, for example through regulatory standards and taxation, and to impose stricter regulation of infrastructure and procurement. 

Safer transport for all 

The issues of safety and access must also be addressed, the Secretary-General continued. 

“This means helping more than one billion people to access paved roads, with designated space for pedestrians and bicycles, and providing convenient public transit options,” he said. 

“It means providing safe conditions for all on public transport by ending harassment and violence against women and girls, and reducing deaths and injuries from road traffic accidents.” 

Making transport resilient 

Post-pandemic recovery must also lead to resilient transport systems, with investments going towards sustainable transport, and generating decent jobs and opportunities for isolated communities. 

“Public transport should be the foundation for urban mobility,” he said. “Per dollar invested, it creates three times more jobs than building new highways.” 

With much existing transport infrastructure, such as ports, vulnerable to extreme climate events, better risk analysis and planning are needed, along with increased financing for climate adaptation, particularly in developing countries. 

Mr. Guterres stressed the need for effective partnerships, including with the private sector, so that countries can work together more coherently. 

“The transformative potential of sustainable transport can only be unleashed if improvements translate into poverty eradication, decent jobs better health and education, and increased opportunities for women and girls. Countries have much to learn from each other,” he said. 

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