Check out our new Special Report on the Financial Crisis. Don't miss feature
writer Ted Landphair's America - a new blog on American life. And remember to
log on to USAVotes2008.com, our election community site, where you can discuss
U.S. politics with others around the world.
US Moves to Strengthen Banks as Markets Rally
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Speaking at White House Tuesday, US President George Bush says plan will
encourage banks to resume lending
World markets are rallying sharply for a second consecutive day as governments
continue coordinated efforts to prop up financial institutions and unfreeze
tight credit. VOA's Michael Bowman reports from Washington, where President
Bush announced new emergency measures to rescue America's banking
system.President Bush delivers remarks on the economy in the Rose Garden of the
White House in Washington, Tuesday, 14 Oct. 2008Speaking before the opening of
U.S. financial markets, President Bush detailed an unprecedented plan of direct
government involvement in private banks. He said the federal government will
inject capital into banks by purchasing some of their stock. "This new capital
will help healthy banks continue making loans to businesses and consumers," Mr.
Bush said. "And this new capital will help struggling banks fill the hole
created by losses during the financial crisis, so they can resume lending and
help spur job creation and economic growth." In addition, the president said
the federal government will guarantee most new loans issued by insured banks,
including short-term loans between banks. And, the government will take
additional steps to make it easier for businesses to cover day-to-day
operations.The president stressed that the steps being taken are temporary, and
are, in his words, "not intended to take over the free market, but to preserve
it." The funds to be spent will come from the $700 billion rescue package Mr.
Bush signed into law earlier this month. The new measures mirror several
components of a European plan announced Sunday.Meanwhile, the global market
rebound continues. Building on Monday's breathtaking gains, shares in Tokyo
finished up more than 14 percent. Major European markets had gained between
five and seven percent in afternoon trading.
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Obama, McCain Detail US Economic Proposals
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Senator Obama proposes a temporary tax credit for companies that create new
jobs in US; Senator McCain says he has plan to keep taxes low
Senator Barack Obama in Toledo, Ohio, 13 Oct 2008U.S. presidential candidates
Republican John McCain and Democrat Barack Obama have outlined their plans to
stabilize the struggling U.S. economy, three weeks before the election.Senator
Obama proposed a temporary tax credit for companies that create new jobs in the
United States.During a rally Monday in the key battleground state of Ohio,
Obama also proposed penalty-free withdrawals from individual retirement
accounts of up to $10,000 and temporarily barring banks from foreclosing on
people trying to pay their mortgages. His campaign says his proposals likely
would cost $60 billion over the next two years.Senator McCain highlighted
several steps to address the economic crisis, during campaign stops in Virginia
and North Carolina.John McCain speaks to supporters during rally in Virginia
Beach, Virginia, 12 Oct 2008McCain said he has a plan to keep taxes low,
protect workers' retirement savings, and bring relief to people devastated by
what he called "the excesses of Wall Street and Washington."National polls show
McCain trailing Obama ahead of the candidates' last televised debate
Wednesday.One opinion poll, by Reuters, C-Span and Zogby released today shows
Obama with a four-point lead over McCain, down from a six-point lead Sunday,
while a separate survey, by The Washington Post and ABC News indicates Obama is
leading by 10 points among likely voters.Some information for this report was
provided by AP and Reuters.
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Congressional Democrats, Economic Experts Discuss New Stimulus Package
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Minority Republicans say they agree on need for new legislation to help
economy, but call Democrats' proposals insufficient
Majority Democrats in Congress met with economic experts on Capitol Hill Monday
to discuss a new package of steps to stimulate the U.S. economy. VOA's Dan
Robinson reports that minority Republicans say they agree on the need for new
legislation to help the economy, but call Democrats' proposals
insufficient.House Speaker Nancy Pelosi (r) at a news conference following an
economic forum with Democratic leaders and economic experts, 13 Oct 2008As Wall
Street experienced a dramatic one day recovery of nearly 1,000 points after
last week's sharp declines, Democrats were making clear they intend to take
further steps to help Americans battered by recent financial market losses, and
reform financial markets.House Speaker Nancy Pelosi and other key Democrats met
behind closed doors with a group of economic experts, and afterwards Pelosi
summarized what a new stimulus package would include."A recovery package will
have some of the features we have had before, about infrastructure, health
care, aid to the states for health for children and seniors, food stamps and
unemployment insurance in this time of rising unemployment," said Nancy
Pelosi.Pelosi was non-committal when asked about how much this would cost,
saying more clarity will come from congressional hearings before and after the
November 4th U.S. presidential election.Steny Hoyer is the House Democratic
Majority Leader."[Hearings] to look in the very short term, but nevertheless in
a considered fashion at what options will best help our economy recover and
particularly how best to help those who are most vulnerable and most in need,"
said Steny Hoyer.Joseph Stiglitz, recipient of the 2001 Nobel Prize for
Economics, said there was "remarkable agreement" among economists who met with
lawmakers about the need for a comprehensive recovery program.". . . not just
based on trickle down economics, not just giving money to financial markets,
but going directly, at least some of the money going directly, to households to
meet infrastructure needs, to meet the variety of challenges facing our society
today," said Joseph Stiglitz.In addition, says Stiglitz, the program must be
efficient and well-designed, and consistent with longer-term U.S. economic
needs and prospects for growth. Arthur Leavitt, who headed the U.S.
Securities and Exchange Commission from 1993 to 2001, strongly endorsed
Democrat's plans to address financial market and regulatory reforms when a new
Congress convenes next year."We are here [in this financial situation] today
not because of what happened in the last year, but because of what happened
perhaps over the last two decades," said Arthur Leavitt. "We have an
opportunity now to make a difference. And the thrust of everything that
happened today was to take a look at that and decide how we will restore
investor confidence."Allen Sinai, noted economist and consultant to several
U.S. presidential administrations, said there is no doubt that the U.S. economy
is in recession."Look, the U.S. economy is in recession, the global economy is
in recession," said Allen Sinai. "We - Washington and Americans - are working
through the most severe financial crisis we have had since the 1930s. I think
all Americans know the score." At the same time, Sinai predicts that with
congressional action on financial system reforms, in his words, things will
look a lot better by next year. Massachusetts Democrat Barney Frank, who
chairs the House Financial Services Committee discussed what Democrats are
calling their "recovery initiative"."So what we will be doing next year is to
adopt the kind of sensible regulation of credit default swaps and
collateralized debt obligation derivatives and those other instruments, which
have been un-regulated by conscious choice for the past years, and put rules on
them so they do not get out of hand," said Barney Frank.In a letter to House
Speaker Pelosi on Monday, House Republican Minority Leader John Boehner
asserted that nothing known so far about Democrat's plans will bring long-term
stability to the U.S. economy.While agreeing on the need for additional steps
to get the economy back on track, Boehner repeated Republican calls for capital
gains and corporate tax cuts, adoption of Republican energy proposals, and
other measures. Speaker Pelosi told reporters that Democrats are closely
coordinating their economic steps with Democratic presidential candidate Barack
Obama.In campaign stops on Monday, Obama laid out in more detail steps he would
take to help the economy, including a two year tax break for businesses that
create new jobs and a 90 day moratorium on home foreclosures.His Republican
opponent, John McCain, told supporters he would do more to help the economy,
focusing on steps to halt declines in home values, protect retirement funds and
freeze government spending.
------------------------------------------------------
Afghan Provincial Official Assassinated
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Police say roadside bomb was apparently intended to target NATO troops
Two gunmen on a motorbike assassinated a senior official in southern
Afghanistan Tuesday, in a province where Taliban militant attacks and violence
are on the rise. The head of Kandahar province's labor and social affairs
department, Dost Mohammad Arghestani, and his bodyguard were shot dead on their
way to work. In response to the news, a presidential spokesman, Humayun
Hamidzada, said the Afghan government is working hard to protect public
servants. Earlier in the day, Afghan authorities said nine people died when a
roadside bomb hit a small bus in Kandahar.Police say the bomb was apparently
intended for NATO troops. Two children were among those killed. Also today,
NATO said three of its soldiers were killed when their vehicle was struck by a
roadside bomb in eastern Afghanistan.Separately Tuesday, the U.S. military said
a soldier with the U.S.-led coalition was killed in southern Afghanistan.The
U.S. military says the soldier was riding in a vehicle that struck an
improvised explosive device Monday. Several other soldiers in the vehicle were
wounded.Some information for this report was provided by AFP and Reuters.
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Syria Opens Formal Diplomatic Ties with Lebanon
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President Bashar al-Assad signs decree calling for creation of diplomatic
embassy at ambassador level in Beirut
Bashar al-AssadSyrian President Bashar al-Assad has issued a decree formally
establishing diplomatic ties with next-door neighbor Lebanon.The decree was
announced Tuesday by the official Syrian news agency. It calls for the
creation of a diplomatic embassy at the ambassador level in the Lebanese
capital of Beirut.Mr. Assad and Lebanese President Michel Suleiman agreed to
establish relations back in August, during talks in Paris with French
counterpart Nicolas Sarkozy. The two countries have not had embassies in each
other's capitals since they both gained independence from France more than 60
years ago. Relations between Damascus and Beirut have been strained since the
2005 assassination of former Lebanese Prime Minister Rafiq Hariri. Syria was
blamed for Hariri's murder, and withdrew its troops from Lebanon a few months
later under international pressure, ending a three-decade long occupation.
Syria had denied any involvement in Hariri's death. During Mr. Suleiman's
official visit to Damascus in August, he and Mr. Assad also agreed to formally
demarcate the Syrian-Lebanese border as part of the process of improving
relations.
Some information for this report was provided by AFP and AP.
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Africans Sort Out Financial Priorities As Nations Pursue Coordinated Rescue
Plan
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High food and fuel prices, humanitarian costs of alleviating poverty, and
ensuring continued support from international donors top the list of African
concerns at Washington World Bank gathering
In Washington, African finance ministers on the sidelines
of the annual meetings of the World Bank and International Monetary Fund (IMF)
began assessing the impact of economic rescue measures unveiled over the
weekend. During urgent weekend meetings in Paris and Washington, the leading
European, American, and Japanese industrial powers pledged to pour more than a
trillion dollars into imperiled banks across the globe to help extend loans and
investment and resuscitate a shattered credit market. As the recovery package
started to calm world financial anxieties
on Monday, African countries indirectly, but clearly impacted by the imminent
financial collapse started to evaluate how best to shore up international
organization support and donor government pledges in the wake of the
crisis. World Bank communications
director for Africa Herbert Boh explains what priorities developing countries
must salvage from the shaky
climate.
“The
key thing that was on the line, especially for countries in Africa, was the
need for African countries, many of which are not as exposed, given that most
banks in Africa hold their loans on their balance sheets. They do not have a
derivative market, and
they also have a small secondary financial market. So because of this, the
attention was being drawn to African
countries to make sure that they continue to work on their macro-economic
stability issues and continue to work on inflation issues and ensure that
growth continues to benefit the poor,” he said.
Last
year, African migrant workers employed in Europe and elsewhere sent home some
$20 billion in earnings to help their Africa-based relatives escape poverty at
home. This year, African countries face
prospects of dwindling foreign derived investments on the continent and a
possibility of diminishing income remittances from migrants working overseas,
who are in greater jeopardy of losing their jobs because of the downturn. Boh
says Africans need to protect themselves against falling back into deeper
levels of poverty that could be precipitated by a falloff of foreign income
finding its way into Africa.
“To
the extent that these migrant workers were to lose their jobs in rich
countries, it could very negatively impact the poor, not necessarily banks,
because the money just transits through banks,” said Boh.
The
World Bank official notes that the world crisis could have greater impact on
African economic giants like Nigeria and South Africa, which are more actively
engaged in international finance. He says those two powers account for 54
percent of the continent’s total Gross Domestic Product (GDP). But he also
says that the commitment of
industrial powers to bail out major globally oriented banks and lenders sends a
positive sign to other African countries not likely to be as hard hit by the
current crisis.
“Those
countries, (Nigeria and South Africa), given their links to the international
markets, were going to be badly hit.
The rest of Africa is not so much connected with international
hits. But the fact that things have
happened well and that the bailout package, or the rescue package, seems to be
working well, it’s a lot of good news for countries that are dependent on aid,
and many of them are dependent on aid for more than one-half of their budgets,”
he noted.
On
Sunday, World Bank President Robert Zoellick told reporters that the global
economic crisis should not be allowed to lower offers of humanitarian aid to
poor countries already being strapped with rising food and fuel costs. Africa
communications director Herbert Boh
says World Bank officials are striving to emphasize that recent economic gains
negotiated by developing countries with G8 nations at major power summits set a
humanitarian priority that should not be sacrificed because of growing
financial pressures.
“In
a region where, since 1995, the number of the poor has almost doubled again in
spite of support. So the World Bank has
been very insistent on countries honoring their Gleneagles promises to provide
at least $50 billion in aid to Africa every year,” he said.
To help Africa cope with rising food prices, the World Bank has created a $1.2
billion fund. It is designed to ease feeding populations at risk by helping
boost agricultural production, improve irrigation and other farming methods,
facilitate the transport of food to markets, and reform land ownership
practices.
There is also a $2.7 billion energy fund being drawn up to help African
countries plagued by power shortages and weak infrastructures get their
economies moving. In addition, the World Bank voted yesterday to open up a
third director position on its executive board to members from Africa and other
emerging economies, effectively raising the number of board members from 24 to
25. Herbert Boh says the move is in response to requests to extend a greater
voice for African interests and voting representation on the bank’s prestigious
decision-making panel.
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Canadians Vote in Parliamentary Elections
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Polls indicate Prime Minister Stephen Harper will retain power, but experts say
his party's lead is by no means secure
Stephen Harper Canadians are voting Tuesday for a new parliament, in a battle
between Prime Minister Stephen Harper's Conservative party and the Liberals,
led by Stephane Dion.Polls indicate Mr. Harper will keep power, but experts say
his party's lead is by no means secure. Mr. Harper has been accused of being
slow to respond to the global economic crisis and insensitive to the financial
concerns of his constituents.Dion, from the French-speaking province of Quebec,
is an environmentalist who has been criticized for speaking poor English, a
factor that could cost him votes. This is the first election in any of the
world's major industrialized nations since the global economic crisis began.Mr.
Harper announced in September that he would dissolve parliament and call for
new elections, after he and Liberal leader Dion failed to agree on a common
legislative agenda. During meetings between the two leaders, the opposition
rejected a request to keep Mr. Harper in power until the next scheduled
elections in October 2009.
Some information for this report was provided by AFP, AP and Reuters.
------------------------------------------------------
Russians Pull Back in Georgia But Scars of War Remain
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Some families return to find ransacked homes and say there will be no security
until the Russians are really gone
Life is returning to normal in parts or northern Georgia - two months after
open warfare there between Georgian and Russian troops and Russian-backed
separatists from the enclaves of Abkhazia and South Ossetia. Russian troops
pulled out of their self-declared buffer zones in the area last week and
Georgian families are moving back into their homes there. But as VOA's Sonja
Pace reports from the village of Ergneti, the scars of war are still all too
evident. Column of Russian APCs moves along road near village of Rukhi at
Inguri river, 08 Oct 2008Until last week, few wanted to venture back into
Ergneti, a small village in northeastern Georgia, caught in the midst of the
war in early August and then part of a buffer zone under the control of Russian
troops and their South Ossetian allies. But, the Russians have gone and
Georgian families are coming back to their homes - Goderdzi Kasradze is one of
them.The men stand on the wide front porch, examining the damage: a mattress
ripped and strewn on the floor, shattered glass, even a wooden window frame
left dangling. Goderdzi Kasradze looks on in dismay."The Russians destroyed my
house and Ossetians looted it. They took everything we had," he said. Nine
family members call this home. They fled when the shooting and shelling
started."The whole family was here when the shooting started. We evacuated the
women and children. Then, I also had to flee," he explained.They've just
returned - to find this.No room escaped damage. The children's bedroom - the
living room. Kasradze's wife Lena tries a few keys on the once-prized piano. It
too has been destroyed.Whatever was left behind when the family fled was
ransacked - even an old stove pipe ripped out of the ceiling to search for any
hidden valuables. The family reacts with disbelief and despair.PACE: What was
your reaction when you came back here?"I cry and that is my reaction," Kasradze
responded.The Kasradze home is just a kilometer from the dividing line with
South Ossetia. Until recently, the last checkpoint here was under Russian
control, but now Georgian security forces have taken over. Across here is
South Ossetia - its capital Tskhinvali less than two kilometers up the road.
The soldiers say this is as far as we can go. It was events in Tskhinvali that
sparked the fighting in August - when Georgian forces launched an attack to try
to rein in Russian-backed separatists and regain control of the enclave.
Russian forces moved in quickly, driving the Georgians back, pushing deep into
Georgia and creating buffer zones around South Ossetia as well as the other
breakaway region - Abkhazia in the northwest. Under a European Union-backed
cease-fire accord Moscow promised to withdraw by October 10. The Ergneti
crossing is quiet - not much traffic either way - with the occasional
exception. Ildizar Talibov slowly walks up the road toward the checkpoint.
The soldiers quickly move to stop and query him. They let him pass.Talibov says
he regularly sold goods in the Tskhinvali market. He fell ill and was in the
hospital when fighting broke out. He says he had to take shelter and could not
leave until now. "Tskhinvali is much destroyed," he said. "A friend who was in
the hospital with me took me to his house. In those Georgian villages there
is hardly any building left." Thirty kilometers away - the Russians are still
manning the Akhalgori checkpoint. They say they've received no orders so far
to pull back any farther. A few hundred meters back is the Georgian checkpoint
and on this occasion a European Union monitoring patrol has just stopped by."Do
you know if there are any mines anywhere?" asks Fredrik Nylyn, part of an
observer force sent here to monitor the cease-fire. The Russians were to have
moved back to pre-conflict positions on this day. There are differing views as
to where those exact positions are and whether the Russians have fully
complied."There is room for different interpretations on both sides, actually,"
noted Nylyn. "Yes, there will be different opinions on whether this agreement
has been fulfilled from both parts or not."The Russians have pulled out of
their self-declared buffer zones, but they remain inside Abkhazia and South
Ossetia. But, back in Ergneti, Goderdzi Kasradze says there'll be no security
until the Russians are really gone."We had fruits and flowers. It looked like
people had lived here. It does not look like that now, but we hope we can
change that and make it a home again," he said.Making life normal again is what
many Georgians hope, especially in these areas ravaged by fighting. Life is
returning to normal, people are moving back to tend their orchards and farms
and to rebuild. But for some, looking at their destroyed homes, it's hard to
know just where to begin.
------------------------------------------------------
WHO Advocates Primary Health Care, Universal Coverage
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World Health Organization says primary care can provide billions of people
fairer access to health care
The World Health Organization is urging governments to adopt primary health
care and universal coverage as the best ways of improving health and saving
lives. This year's World Health Report says primary health care can provide
billions of people fairer access to health care. Lisa Schlein reports for VOA
from WHO headquarters in Geneva.This year's report commemorates the 30th
anniversary of the Alma-Ata Conference, which put primary health care on the
international political agenda. Primary health care offers a holistic
approach. It operates at the community level, allowing people to have easier
access to medical care.The doctrine espoused in 1978 was aimed at improving
health in deprived populations by tackling health problems at an early stage,
before they got out of hand. However, 30 years later, the promise of Alma-Ata
has not been fulfilled. The World Health Organization reports differences in
life expectancy between the richest and poorest countries now exceed 40
years.An estimated 136 million women will give birth, this year. Yet, WHO says
around 58 million of them will receive no medical assistance, endangering their
lives and that of their infants.WHO Assistant Director-General for Information,
Evidence and Research Timothy Evans says the world's health picture during the
past 30 years has been generally positive. But, he tells VOA even more
children's lives could have been saved had more countries embraced primary
health care."If all countries had performed at the higher end, than that figure
could have been three million deaths annually instead of nine million deaths,
annually," Evans said. "So, we know that there is a tremendous amount more
that needs to be done in order to reach health opportunities for all." The
report finds the amount of money governments spend every year on health varies
widely from $20 to $6,000, per person. It says, for 5.6 billion people in
low and middle income countries, more than half of all health care expenditure
is through out-of-pocket payments.It says more than 100 million people are
pushed below the poverty line each year, by rising health care costs. Evans
says universal coverage would ease this situation. It would give all people
access to health care, regardless of their ability to pay. "The evidence
globally is very clear," Evans said. "In countries where you have to pay out
of pocket when you access health care, people are much less likely to access
health care at the right time. They tend to wait until it is too late, when
either there is very little that can be done for them or what is done for them
is extremely expensive and not often effective." Evans says primary health
care is best suited to deal with a whole host of new risks today associated
with chronic illnesses."We are saying that those risks to ill health need to be
aggressively addressed with the appropriate policies, in order to effectively
prevent them from becoming major health problems," he said.The World Health
Organization says strong and committed leadership is often more important than
money, in providing good health care. It says countries with poor resources -
such as Sri Lanka, Kerala State in India, and Oman, which was poor in the 1970s
- have greatly improved the health of their people by embracing primary health
care and universal coverage.
------------------------------------------------------
For Craftsman, Kayaks Are Way of Life
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VOA's Zulima Palacio finds for aficionados, wooden kayak is Rolls Royce of
light, fast boat
Chesapeake Light Craft, has shipped thousands of small boat kits around the
world and says kayaks are the most popularFor more than 1,000 years, kayaks
have fascinated people young and old. The long, narrow, boats were originally
designed by Eskimos for hunting seals in the arctic. They are mostly covered,
with a small opening in the center and are propelled by a double bladed paddle.
They made it to Europe in the early 1900s and spread around the world, used for
hunting, pleasure and competition - in rivers and seas.
Tourists who kayak mostly use mass produced plastic models. But a wooden
kayak is the Rolls Royce of this light and fast boat. Producer Zulima Palacio
spoke to a craftsman who has spent a lifetime designing kayaks. Carol Pearson
narrates.
------------------------------------------------------
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