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As Iran veers right, ties with Gulf Arabs may hinge on nuclear pact

DUBAI — Gulf Arab states are unlikely to be deterred from dialogue to improve ties with Iran after a hardline judge won the presidency but their talks with Tehran might become tougher, analysts said.

Prospects for better relations between Muslim Shi’ite Iran and Sunni Gulf Arab monarchies could ultimately hinge on progress to revive Tehran’s 2015 nuclear accord with world powers, they said, after Ebrahim Raisi won Friday’s election.

The Iranian judge and cleric, who is subject to US sanctions, takes office in August, while nuclear talks in Vienna under outgoing President Hassan Rouhani, a more pragmatic cleric, are ongoing.

Saudi Arabia and Iran, longtime regional foes, began direct talks in April to contain tensions at the same time as global powers have been embroiled in nuclear negotiations.

“Iran has now sent a clear message that they are tilting to a more radical, more conservative position,” said Abdulkhaleq Abdulla, a UAE political analyst, adding that Mr. Raisi’s election might make improving Gulf ties a tougher challenge. “Nevertheless, Iran is not in a position to become more radical … because the region is becoming very difficult and very dangerous,” he added.

The United Arab Emirates, whose commercial hub Dubai has been a trade gateway for Iran, and Oman, which has often played a regional mediation role, were swift to congratulate Mr. Raisi.

Saudi Arabia has yet to comment.

Mr. Raisi, an implacable critic of the West and an ally of Supreme Leader Ayatollah Ali Khamenei, who holds ultimate power in Iran, has voiced support for continuing the nuclear negotiations.

“If the Vienna talks succeed and there is a better situation with America, then (with) hardliners in power, who are close to the supreme leader, the situation may improve,” said Abdulaziz Sager, chairman of Gulf Research Center.

LEVERAGE
A revived nuclear deal and the lifting of US sanctions on the Islamic Republic would boost Mr. Raisi, easing Iran’s economic crisis and offering leverage in Gulf talks, said Jean-Marc Rickli, an analyst at Geneva Centre for Security Policy.

Neither Iran nor Gulf Arabs want a return to the kind of tensions seen in 2019 that spiralled after the US killing, under former US President Donald Trump, of top Iranian general Qassem Soleimani. Gulf states blamed Iran or its proxies for a spate of attacks on oil tankers and Saudi oil plants.

A perception that Washington was now disengaging militarily from the area under US President Joseph R. Biden has prompted a more pragmatic Gulf approach, analysts said.

Nevertheless, Mr. Biden has demanded Iran rein in its missile programme and end its support for proxies in the region, such as Hezbollah in Lebanon and the Houthi movement in Yemen, demands that have strong support from Gulf Arab nations.

“The Saudis have realized they can no longer rely on the Americans for their security … and have seen that Iran has the means to really put pressure on the kingdom through direct attacks and also with the quagmire of Yemen,” Mr. Rickli said.

Saudi-Iran talks have focused mainly on Yemen, where a military campaign led by Riyadh against the Iran-aligned Houthi movement for over six years no longer has US backing.

The UAE has maintained contacts with Tehran since 2019, while also forging ties with Israel, Iran’s arch regional foe.

Sanam Vakil, an analyst at Britain’s Chatham House, wrote last week that regional conversations, particularly on maritime security, were expected to continue but “can only gain momentum if Tehran demonstrates meaningful goodwill.” — Reuters

Brazil passes half a million COVID-19 deaths; experts say worse ahead

SAO PAULO — Brazil’s death toll from coronavirus disease 2019 (COVID-19) surpassed 500,000 on Saturday as experts warn that the world’s second-deadliest outbreak may worsen due to delayed vaccinations and the government’s refusal to back social distancing measures.

Only 11% of Brazilians have been fully vaccinated and epidemiologists warn that, with winter arriving in the southern hemisphere and new variants of the coronavirus circulating, deaths will continue to mount even if immunizations gain steam.

Brazil has registered 500,800 deaths from 17,883,750 confirmed COVID-19 cases, according to Health Ministry data on Saturday, the worst official death toll outside the United States. Over the past week, Brazil has averaged 2,000 deaths per day.

COVID-19 continues to devastate countries around the region with the Pan American Health Organization (PAHO) reporting 1.1 million new cases of COVID-19 and 31,000 deaths in the Americas last week. PAHO noted upticks in six Mexican states, Belize, Guatemala, Panama and some places in the Caribbean.

PAHO warned that Colombia’s COVID-19 situation is at its worst point yet, with intensive care unit beds filled in major cities.

Experts see the toll in Brazil, already the highest in Latin America, climbing far higher.

“I think we are going to reach 700,000 or 800,000 deaths before we get to see the effects of vaccination,” said Gonzalo Vecina, former head of Brazilian health regulator Anvisa, predicting a near-term acceleration in fatalities.

“We are experiencing the arrival of these new variants and the Indian variant will send us for a loop.”

Vecina criticized far-right President Jair Bolsonaro’s handling of the pandemic, including the lack of a coordinated national response and his skepticism toward vaccines, lockdowns and mask-wearing requirements, which he has sought to loosen.

Thousands of Brazilians protested against Mr. Bolsonaro’s management of the pandemic in nationwide demonstrations on Saturday, blaming the administration for the high death toll and calling for the president’s ouster.

Raphael Guimaraes, a researcher at Brazilian biomedical center Fiocruz, said delays in the vaccination program in Latin America’s most populous nation meant its full effects would not be felt until September or later.

Mr. Guimaraes warned that Brazil could revisit scenes from the worst of its March-April peak, when the country averaged 3,000 deaths per day.

“We are still in an extremely critical situation, with very high transmission rates and hospital bed occupancy that is still critical in many places,” he said.

Last week, new confirmed cases in Brazil accelerated to more than 70,000 per day on average, edging past India for the most in the world.

Vaccination will be crucial in beating the virus in Brazil, since the country has failed to reach a consensus on social distancing and masks, said Ester Sabino, an epidemiologist at the University of Sao Paulo.

“We really need to increase vaccination very quickly,” she said.

However, evidence from neighboring Chile, which like Brazil has relied overwhelming on a vaccine developed by China’s Sinovac Biotech, suggests it may be months before mass immunization will effectively curb transmission.

Nearly half of Chileans have been vaccinated, but their capital Santiago just went back into lockdown as cases surged again to near peak levels.

Brazil will need to inoculate some 80 million people to reach Chile’s current per capita vaccination levels.

That will require a more consistent supply of vaccines and ingredients in Brazil, which have been spotty in recent months, as imports from China were delayed after Mr. Bolsonaro antagonized Beijing with comments perceived as anti-Chinese. — Reuters

Airlines, holiday companies ramp up pressure on Britain to ease travel rules

LONDON — Britain’s airlines and holiday companies are planning a “day of action” on Wednesday to ramp up pressure on the government to ease travel restrictions, with just weeks to go before the start of the peak summer season.

Travel companies, whose finances have been stretched to breaking point during the pandemic, are desperate to avoid another summer lost to COVID-19. But with Britain’s strict quarantine requirements still in place that now looks likely.

As the clock ticks down to July, Europe’s biggest airline Ryanair and Manchester Airports Group on Thursday launched legal action to try to get the government to ease the rules before the industry’s most profitable season starts.

On Wednesday, June 23, pilots, cabin crew and travel agents will gather in Westminster, central London, and at airports across Britain to try to drum up support.

Britain’s aviation industry has been harder hit by the pandemic than its European peers, according to data published by pilots trade union BALPA on Sunday.

That showed daily arrivals and departures into the United Kingdom were down 73% on an average day earlier this month compared to before the pandemic, the biggest drop in Europe. Spain, Greece and France were down less than 60%.

UK airports were also badly affected, with traffic in and out of London’s second busiest airport Gatwick down 92%, according to the data.

Time is running out for the industry, said the union.

“There is no time to hide behind task forces and reviews,” said BALPA general secretary Brian Strutton.

“BALPA is demanding that the UK Government gets its act together and opens the US routes and European holiday travel destinations that it has blocked with no published evidence at all.”

Over 45,000 jobs have already been lost in UK aviation, with estimates suggesting that 860,000 aviation, travel and tourism jobs are being sustained only by government furlough schemes. — Reuters

UAE to suspend entry from three countries, Dubai updates travel protocols

CAIRO — The United Arab Emirates (UAE) will suspend travelers from Liberia, Sierra Leone and Namibia from entering the country on national and foreign flights, effective 23:59 p.m. on Monday, June 21, state news agency WAM reported on Saturday, citing a statement by the General Civil Aviation Authority (GCAA).

The GCAA said the restrictions would also include transit passengers, with the exception of transit flights travelling to the UAE and bound for those countries.

Cargo flights between those countries and the UAE will continue, as usual, the statement added.

It said the restrictions were being introduced to limit the spread of COVID-19.

The GCAA added that exemptions to its decision include: UAE nationals, their first-degree relatives, diplomatic missions, official delegations, business jets — after getting prior approvals — and golden and silver residency permit holders, in addition to those who work essential jobs.

Those who are exempted will still have to take a PCR test at the airport and enter a mandatory 10-day quarantine.

Separately, Dubai’s Supreme Committee of Crisis and Disaster Management said on Saturday it would allow travellers from South Africa, who have received two doses of a UAE-approved vaccine, to enter Dubai starting from June 23, WAM said.

Travelers from India, who have valid residence visas and have received two doses of a UAE-approved vaccine, will also be allowed in the emirate.

Meanwhile, travellers from Nigeria must only present a negative PCR test taken 48 hours prior to departure and will also undergo another PCR test on arrival in Dubai, WAM added. — Reuters

Taiwanese staff to leave Hong Kong office in ‘one China’ row

XANDREASWORK-UNSPLASH

TAIPEI — Taiwanese staff working at the island’s representative office in Hong Kong will begin leaving the Chinese-run city from Sunday, a senior official said, after the government there demanded its officials sign a document supporting Beijing’s claim to Taiwan. 

Chinese-ruled Hong Kong has become another bone of contention between Taipei and Beijing, especially after Taiwan lambasted a security law imposed on Hong Kong by Beijing and began welcoming Hong Kongers to settle on the island. 

Lin Fei-fan, deputy secretary general of Taiwan’s ruling Democratic Progressive Party, said only local staff would remain at the office. 

“This is because the Chinese Communist Party and the Hong Kong government continue to force our personnel stationed in Hong Kong to sign a ‘one China commitment letter’ to recognize ‘one China,’” he said on his Facebook page. 

“As a political prerequisite for the visa renewal, we will of course not accept it!” 

China sees democratically ruled Taiwan as part of “one China” and has never renounced the use of force to bring the island under its control. 

Mr. Lin said Taiwan would never accept “one China” or “one country, two systems,” Beijing’s way of running Hong Kong under Chinese sovereignty it hopes to one day apply to the island. 

A senior Taiwan official familiar with the matter told Reuters seven Taiwan officials will return on Sunday afternoon, with the last remaining official to come back after visa expiry next month. 

In a statement earlier on Sunday, Taiwan’s Mainland Affairs Council said that since July 2018 the Hong Kong government has “repeatedly set unreasonable political conditions for staff visas for our Hong Kong office, demanding the signing of a ‘One China Commitment Letter.’” 

Starting from Monday, the Hong Kong office will “adjust its business handling method,” it added, saying the office will maintain “necessary operations.” 

Taiwanese staff will not sign any such “one China” letter, it added. 

Last month, Hong Kong suspended operations at its Taiwan representative office, blaming Taipei’s “gross” interference in internal affairs, including with its offer to assist “violent” protesters, accusations Taiwan rejected. 

Macau’s government followed suit on Wednesday. — Ben Blanchard and Yimou Lee/Reuters  

Rohingya artists tackle COVID-19 fears as refugees wait for vaccines

UNSPLASH

DHAKA — Busy with his brushes beneath a tarpaulin roof, Rohingya artist Ansar Ullah works on a mural depicting a giant vial of coronavirus disease 2019 (COVID-19) vaccine towering over the ramshackle homes of the world’s largest refugee settlement in Bangladesh. 

More than 700,000 Rohingya who fled Myanmar in 2017 live in Bangladesh’s refugee camps, where a vaccination drive scheduled to start in March has been postponed indefinitely due to delays in supplies from the COVAX program, the United Nations said. 

COVID-19 cases have remained relatively low despite a recent uptick, but the artists said many refugees have misconceptions about the coronavirus vaccines, which they aim to allay through their work. 

“Firstly, we hope someone or some organization sees this painting and helps us get vaccines. Our camps are crowded and we need them the most,” Mr. Ullah, 26, told the Thomson Reuters Foundation by phone. 

“There are also fears about the vaccine in our camps. Some are scared they might die or that their health might worsen because of the injection. We want to address these rumors, so that when the vaccine does come, everybody takes it,” he added. 

Painted ahead of Sunday’s World Refugee Day by a dozen artists, the mural also depicts a refugee receiving the jab and a man using a megaphone to challenge vaccine hesitancy and encourage camp residents to get vaccinated as soon as possible. 

“Fear and stigma around COVID-19 has proven to be a major barrier to people getting tested,” Louise Donovan, a spokesperson for the office of the United Nations High Commissioner for Refugees (UNHCR), said by e-mail. 

“Hence major efforts are being undertaken to ensure that refugees have adequate information when the vaccination campaign will begin,” she added. 

Mr. Ullah and his fellow artists are supported by New York-based nonprofit Artolution, and their project is the latest in a series of arts-based initiatives aimed at tackling issues in the camps  from gender-based violence to mental health concerns. 

THE WEDDING SINGER
Rohingya singer Nabi Hossain used to perform at weddings back home in Myanmar, but last year the 50-year-old visited homes around the camps to sing songs about the importance of wearing face masks and respecting social distancing. 

“The same messages are given by authorities through megaphones, but people understand the messages better through music,” said Mr. Hossain, 50, who was forced to leave for Bangladesh after his village was destroyed during a military crackdown. 

UN investigators later concluded that Myanmar’s military campaign was executed with “genocidal intent.” Myanmar denies that, saying the army was battling an insurgency. 

While most of Mr. Hossain’s family made it safely across the border, two of his sisters who lived in another village were killed. 

Mr. Hossain said he still grieved for his sisters, but that singing songs about them brought some relief. 

“It’s not just me. Many Rohingya have lost their relatives. They ask me to sing about them. They cry when I sing about those days. But they also laugh when I sing happy songs. Some of them even record the songs and take them back,” he added. 

Max Frieder, executive director and co-founder of Artolution, said he had witnessed “massive improvements” in the mental health of the artists he has worked with in recent years. 

“The shifts we’ve seen are not always quantitative, but qualitative … We’ve seen our artists, many of whom have had traumatizing experiences, go from becoming victims to survivors to becoming agents of social change,” he said. 

Numerous murals adorn the plastic and bamboo structures at the camps in Cox’s Bazar, a city in southeastern Bangladesh, and many contain broader references to Rohingya culture. 

One shows an elephant crossing the river Naf, which thousands of Rohingya had to pass as they fled Myanmar four years ago, and being welcomed by a rooster symbolizing Bangladesh. 

Even when the artists work in partnership with UN agencies and are given set themes, camp residents come up with the ideas for the murals  often after a discussion about key social issues with other members of the community, Mr. Frieder said. 

‘MUST FOR SURVIVAL’
Before the pandemic, theater was widely used in the camps to highlight residents’ concerns, too. 

The Bangladesh Institute of Theatre Arts (BITA), a nonprofit, organized more than 1,200 plays on issues including trafficking, drug abuse and early marriage, and the entity’s executive director, Sisir Dutta, said they had raised awareness. 

“Take the trafficking cases. Initially many adolescents didn’t even know the term, let alone the dangers. But when they could visualize it, they understood how brokers worked and how their life could be in danger,” he said. 

Many arts-based projects have seen their activities reduced during the pandemic, said Ms. Donovan, but she added that the UNHCR aimed to boost community-led art projects later in the year in partnership with groups like Artolution. 

Another of the COVID-19 mural painters, Ayla Akter, 18, said the artistic initiatives were “a must for survival” in the camps. 

“As long as we sit together and paint, life in the camp feels really good,” she said. “I don’t really have anything else to look forward to. This gives my mind peace.” — Naimul Karim/ Thomson Reuters Foundation 

French far-right tests voters’ appetite in regional elections

Image via Rémi Noyon/Flickr/CC BY-SA 2.0

PARIS  French voters go to the polls on Sunday in regional elections that will test the appeal of far-right leader Marine Le Pen’s softened image less than a year before the next presidential election. 

Coming after a grueling year and a half of lockdowns, curfews and restrictions, Sunday’s first round is likely to prove dire for President Emmanuel Macron, whose party is projected to win none of mainland France’s 13 regions. 

Boosted by a resurgence of law-and-order issues during the campaign, despite the fact French regions have no police powers, Le Pen is hoping to capitalize on a rebrand that has seen her ditch promises of “Frexit” and inflammatory rhetoric. 

“She appears less extreme in the eyes of the French, less dangerous for democracy, than she did a decade ago,” Brice Teinturier, an analyst with pollster IPSOS told Reuters. 

Her best chance is in the south of France, the region around Marseille and Nice, where one of her lieutenants, a former conservative minister, is projected by one opinion poll as winning the race even if all parties rally against him. 

Gaining one region, for the first time ever, would give Ms. Le Pen a major boost less than a year before presidential elections, and would be a slap in the face for Mr. Macron, who has painted himself as a bulwark against the far-right. 

The far-right is also likely to do well in two other regions, around Calais in the north and in Burgundy, helped by low turnout in a country whose attention is shifting to summer holidays to forget the pandemic. 

In the deindustrialized north, the incumbent and frontrunner to become the conservatives’ candidate in the presidential election, Xavier Bertrand, is facing Ms. Le Pen’s party spokesman and Mr. Macron’s justice minister. 

Whether Mr. Macron’s party reaches the 10% threshold will determine if it can force Mr. Bertrand into an alliance to defeat the far-right, which would undermine his pitch as Mr. Macron’s opponent-in-chief in 2022. 

However, a win for Mr. Bertrand would bolster his chances of becoming the conservatives’ presidential candidate. Mr. Macron aides see the one-time health minister as a rival who would erode the president’s center-right voting base. 

Results of Sunday’s first round will send parties into frantic backroom dealing for two days to strike alliances ahead of June 27’s final round. — Reuters

Australia’s top economists call for budget measures to speed the switch to electric cars

Image via Ivan Radic/CC BY 2.0

By Peter Martin 

Australia’s top economists overwhelmingly back government measures to speed the transition to electric cars in order to meet emission reduction targets. 

An exclusive poll of 62 of Australia’s preeminent economists — selected by their peers — finds 51 back measures to boost the take-up of electric cars including subsidizing public charging stations, subsidizing the purchase of all-electric vehicles, and setting a date to ban the import of traditionally-powered cars. 

Only 11 oppose such measures, three of them because they prefer a carbon tax. 

Six of the 51 who supported special measures said they did so reluctantly, as their preferred alternative would be a carbon price or a carbon tax, rather than subsidizing “one alternative out of many to reduce emissions.” 

Cars account for roughly half of Australia’s transport emissions, making them about 8% of Australia’s total emissions. 

Yet Australia’s take-up of electric vehicles is dwarfed by the rest of the world. 

On one measure, all-electric cars accounted for just 0.7% of new car sales in Australia in 2020 compared to 5% in China and 3.5% in the European Union. 

Australia has no domestic car industry to protect, meaning industry policy concerns needn’t hold back the transition. 

Norway plans to outlaw new petrol car sales from 2025; Denmark, the Netherlands, Ireland and Israel from 2030; and California and Britain from 2035. 

Asked whether Australia should take action to speed the transition, eight in ten of the 62 economists selected by the Economic Society said it should. 

The results represent a departure for a profession whose usual advice is to avoid interfering with markets. 

One participant, University of New South Wales (NSW) professor Gigi Foster said an important question needed to be answered in order to justify government intervention: “what is the market failure here?” 

The market failure was pollution, imposing costs on the community beyond the drivers of conventionally powered cars and on the planet by pushing up global temperatures. 

If it wasn’t to be dealt with by a carbon price, measures that sped up the switchover to electric vehicles could achieve some of the same effect. 

By far the most popular measure of six presented to the panelists who supported government action was subsidizing public charging points, backed by 84%. 

The next most popular was removing the luxury car tax from electric-only vehicles. At present the 35% tax applies to cars valued at more than $69,152, and $79,659 for fuel-efficient vehicles. 

According to the survey, 43% supported making charging points compulsory in new homes and new car parks; 39% supported setting a date to ban the import of petrol and diesel cars. 

Matthew Butlin, who chairs South Australia’s Productivity Commission, noted that much of Australia was not urban and unlikely to be served by charging points for some time. 

Without government measures to speed the installation of remote charging stations, many buyers would be reluctant to go electric, even if most of their driving was in cities. 

When they were in place, there would be a good case for banning the import of petrol and diesel vehicles, but not until then. 

Others wanted to hold off on banning the import of conventionally-powered cars until Australia had a lower-emissions mix of electricity. 

Macquarie University’s Lisa Magnani said that with three quarters of Australia’s electricity generated from coal, electric vehicles created considerable emissions. 

The Grattan Institute’s Danielle Wood disagreed, saying “network effects” built a case for switching over early. 

The more people switched, the more charging stations would be built and the lower electric vehicle prices would drop, driving more people to switch, and increasing the benefits of decarbonizing the electricity supply. 

The sooner Australia swapped over, the easier it would be to get to net zero emissions by 2050 without the need for a “cash for clunkers” style scheme to buy back polluting vehicles. 

Setting 2035 as the date for banning imports of gas-powered cars as recommended this year by the International Energy Agency would give buyers time to adjust while the charging infrastructure developed. 

Tax specialist John Freebairn said electric cars were already heavily subsidized by escaping the fuel excise used to fund roads, despite the efforts of some states to plug the gap. 

Sydney University economist Stefanie Schurer argued on the other hand bulky and polluting sport utility vehicles were effectively subsidized because of the tax benefits they attracted when used for work. 

Former Liberal Party leader John Hewson who heads the Crawford School of Public Policy said smoothing the transition had become urgent. 

It took only 10 years from 190313 for the United States to switch from horse-drawn to gas-driven vehicles, and technology take-up was quicker today, particularly in Australia. 

Other economists surveyed noted that there was much that could be done to reduce harmful emissions in addition to going electric. 

Sue Richardson said Australia should impose serious limits on the tailpipe emissions of new cars. Australia is unusual among developed nations in not having such a limit, making it a favored market for high-emission cars. 

Rana Roy said a better approach would be to limit transport itself through remote working and efforts to encourage walking and cycling. Subsidies for electric cars could send such moves backwards. 

When responses to the survey were weighted by the confidence respondents had in them on a scale of 1 to 10, support of special measures to drive the transition remained about as strong, backed by 8 in 10 of the economists surveyed. — The Conversation 

 

Peter Martin is a visiting fellow at the Crawford School of Public Policy, Australian National University. 

This article is republished from The Conversation under a Creative Commons license. Read the original article. 

Cheers and quiet reflection as US crowds mark Juneteenth

ATLANTA/CHICAGO  Marching bands sparked loud cheers and quieter reflections about racial justice from crowds gathered on Saturday to mark Juneteenth as a new US federal holiday commemorating the end of the legal enslavement of Black Americans.  

President Joseph R. Biden, Jr., and Vice-President Kamala D. Harris on Thursday signed a bill making Juneteenth the 11th federally recognized holiday, just over a year after the murder of George Floyd in Minneapolis ignited nationwide protests for racial justice and for ending police brutality.  

“Juneteenth is a day of profound weight and profound power,” Mr. Biden tweeted on Saturday.  

Juneteenth, or June 19th, marks the day in 1865 when a Union general informed a group of enslaved people in Texas that they had been made free two years earlier by President Abraham Lincoln’s Emancipation Proclamation during the Civil War.  

“This particular Juneteenth is special because last year we were in the George Floyd protests, and this year we received some resolution,” said Andrea Johnson of Atlanta, watching a parade under rainy skies near the historic Ebenezer Baptist Church in Atlanta.  

Outside the church where Martin Luther King, Jr. preached and led protests for voting rights, equal access to public services, and social and economic justice, boisterous crowds cheered marching bands and their dancers, who competed with dramatic dips and twirls and were followed by Jeeps adorned with “Black Lives Matter” signs.  

Many onlookers were joyful but some said declaring a national holiday might be a hollow victory for Blacks, many of whom still suffer racial injustice in the United States that can be remedied only through more substantial efforts by the federal government.  

“There are mixed feelings for me,” said Jermaine Washington, a marching band director who lives in Stone Mountain, Georgia, just 20 miles northeast of Atlanta.  

“Oftentimes we see these types of events as a win when it’s just pacification for the Black community instead of making sure there’s an equal education or equitable housing,” Mr. Washington said as he herded his young musicians at the Atlanta procession.  

Stone Mountain, a tiny village that is holding its first ever Juneteenth celebration this year, stands in the shadow of a nine-story high bas-relief of Confederate figures carved into a sprawling rock face, the largest monument to the pro-slavery legacy of the US South.  

Around the United States, concerts, rallies, art displays, and lots of food were among events planned for Juneteenth.  

Atlanta and its metro area have been celebrating Juneteenth for years. Richard Rose, president of the Atlanta chapter of the NAACP, said this year’s designation of Juneteenth as a federal holiday resonates in the city often called the “cradle of the civil rights movement.” 

“While we celebrate, what we have to remember is that we must fight for our rights  in the ballot box, in the schools. And we have to stand up, city-to-city, across this nation,” Mr. Rose said.  

Across the country, many events will take place in-person, unlike last year, as the United States emerges from the coronavirus pandemic and more Americans get vaccinated.  

Chicago’s “March For Us” has a mile-long route in the city’s business district known as the Loop.  

“We celebrate Independence Day, so we would be remiss if we don’t celebrate the day that people who were worth three-fifths of the person finally became free and started this journey towards equality,” said “March for Us” organizer Ashley Munson.  

Ms. Munson said that while strides have been made, recent incidents of police brutality toward Black people and legislation in several US states that curtails voting rights show that much work still needs to be done.  

Among events planned in New York City is “Juneteenth in Queens,” a week-long festival of virtual panel discussions set to conclude on Saturday with food trucks of jerk chicken and waffles, BBQ and more, as well as in-person live performances.  

The initiative is spearheaded by Assemblymember Alicia Hyndman, who sponsored legislation last year that made Juneteenth a state holiday.  

One of the events taking place in Colorado is a flyover to honor the legacy of aviation pioneer Bessie Coleman, who in 1921 became the first African-American woman to earn a pilot’s license.  

Deneen Smith, a 17-year-old Black high school student and aspiring pilot, is inspired by Coleman’s story.  

“That’s what Juneteenth means to me  independence and freedom for African Americans because of what our ancestors struggled through,” Smith said. — Rich McKay and Brendan O’Brien/Reuters 

Duterte to finish 29 flagship projects before term ends

DPWH

The government expects to finish 29 flagship infrastructure projects worth P238.48 billion before President Rodrigo R. Duterte’s term ends in 2022.

It has added 13 more projects for a total of 119 projects worth P4.73 trillion, presidential adviser for flagship infrastructure projects Vivencio B. Dizon told a televised news briefing on Friday.

The National Economic and Development Authority (NEDA) has yet to release the updated list.

Mr. Dizon said 11 projects worth P126.76 billion have been completed. Fifty-one projects worth P3.28 trillion are expected to be finished beyond Mr. Duterte’s term.

Twenty-eight projects worth P1.09 trillion are in the pipeline, he added.

He said some projects had been canceled as the state tries to be fiscally prudent amid a coronavirus pandemic.

“We really have to be more prudent about how we finance and what we finance,” Mr. Dizon said, noting that many of these funds had been channeled to the government’s pandemic response.

The government has completed 212 airport projects, 446 seaport projects, 10,376 flood mitigation structures, 26,494 kilometers of roads and 5,555 bridges under Mr. Duterte’s Build, Build, Build program, he said.

He said 102 airport projects, 117 seaport projects, 1,090 kilometers of railways, 2,587 flood mitigation structures, 2,515 kilometers of roads and 1,020 bridges were ongoing.

“Nowhere in our history did we exceed 5% of gross domestic product,” Economic Planning Secretary Karl Kendrick T. Chua told the same briefing, referring to state infrastructure spending.

“Ten years ago, that was our aspired goal. We could not even reach more than 2% of GDP.”

Mr. Chua said the government had programmed P1 trillion worth of infrastructure projects in the past three years excluding 2020 because of the coronavirus pandemic.

“We have a strong pipeline to ensure that the next administration will have a very good starting point to build on the progress we have so far,” he said. “We will continue to welcome all possible financing options.”

Government infrastructure spending grew by 45% to P58.2 billion in April from a year earlier, according to data from the Budget department. The spending declined by 34% from a month earlier.

On a monthly basis, infrastructure spending rose by 29% to P253.4 billion in the four months to April.

The higher spending mainly came from various infrastructure projects of the Public Works and Transportation departments.

These include the first segment of the Metro Manila Subway project and North-South Commuter Railway project.

The inter-agency Development Budget Coordination Committee expects state infrastructure spending to have peaked at P324.974 billion in the second quarter from P243 billion in January to March.

The government has a P1.02-trillion infrastructure spending plan for the year.

Meanwhile, the World Bank said it had approved a $280-million (P13.5 billion) loan for the Philippines to boost infrastructure projects in the countryside.

The loan is an additional financing for the Philippine Rural Development Project and will be complemented by a newly approved €18.3-million (P1.06 billion) grant, the multilateral lender said in a statement on Friday.

The bank expects more than 300,000 Filipinos in rural areas to benefit from the project.

BoP 2021 estimate raised on better economic landscape

JANNOON028/FREEPIK

The Philippine central bank raised its balance of payment (BoP) projection for this year on expectations of an improved economic landscape here and overseas.

It now expects the payment position to post a $7.1 billion surplus by year-end, which is lower than the $16-billion surplus last year but higher than the $6.2-billion surplus projection made in March.

“The better-than-expected global economic outlook for the year is driven by upward revisions in the growth prospects of major advanced economies such as the US and Japan, the country’s major trading partners,” the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.

On the local front, government efforts to fast-track, the recovery and the faster rollout of coronavirus vaccines are expected to “boost market confidence and encourage further expansion of domestic economic activities.”

The BoP which measures the country’s transactions with the rest of the world. A surplus means more funds entered the economy.

Cash remittances from migrant Filipino workers are expected to grow by 4% this year, unchanged from the previous estimate.

“This is supported by expectations of improved labor mobility following rising vaccination levels in the country and in major destination countries, easing of travel restrictions and reopening of borders to foreign workers,” the BSP said.

It expects the payment position to decline to a $2.7-billion surplus next year, driven mainly by the anticipated narrower current account surplus of $6.7 billion. This is lower than the $3.8-billion surplus estimate given in March.

The outlook depends on the sustained performance of both exports, which should grow by 6% and imports, which should rise by 10%, the central bank said.

Meanwhile, foreign direct investment and hot money inflows are projected to reach $8.5 billion and $7.4 billion, respectively, as the investment climate improves further.

The emerging gross international reserves in 2022 is estimated to reach $117 billion in anticipation of continued foreign currency deposits by the National Government to address the coronavirus pandemic and fast-track its infrastructure program.

The estimates considered potential renewed coronavirus lockdowns, Zeno Ronald R. Abenoja, senior director at the central bank’s Department of Economic Research told an online news briefing.

The country posted a BoP deficit of $2.8 billion in the first quarter, higher than the $68-million deficit a year earlier after an uptick in net outflows in the financial account, coupled with the reversal of the current account from a surplus to a deficit during the period.

The current account posted a $614-million deficit as the merchandise trade gap widened on import growth amid the gradual reopening of the domestic economy, the BSP said. Lower net receipts of primary income also contributed to the deficit.

The country had a $225-million current account surplus a year earlier.

“An expected economic recovery that would lead to a corresponding pickup and rebound in imports plus remittance growth means the current account may not post a substantial surplus,” Robert Dan J. Roces, chief economist Security Bank Corp. said in a Viber message. — BML

BSP fully awards 28-day bills

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The Philippine central bank raised P100 billion from its auction of short-term securities on Friday even as rates rose on hints by the US central bank of a looming interest rate increase in 2023.

The Bangko Sentral ng Pilipinas (BSP) fully awarded the 28-day bills from total bids worth P140.525 billion. The auction was 1.4 times oversubscribed, but the demand was 14% lower than P162.69 billion in the previous auction.

The debt paper fetched an average 1.811%, up by 1.4 basis points (bps) from 1.797% last week.

Yields sought by banks ranged from 1.78% to 1.845%, narrower than 1.755-1.87% a week earlier.

The continued uptick in local yields may be traced to the US Federal Reserve’s hints that two 25-bp rate increases are likely to happen toward the end of 2023, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

The possibility of the Fed soon unwinding its bond purchases as the US economy recovers may also have contributed to rising local bond yields.

At its latest two-day meeting, majority of the Federal Open Market Committee members said they expected the Fed to raise its benchmark interest rates twice in 2023.

The Fed also increased its forecast for inflation to 3.4% from 2.4% this year amid a bigger-than-expected impact of supply chain disruptions.

Investors are also becoming more cautious about when the Fed will taper its bond purchases, a measure that many central banks adopted to boost market liquidity amid a coronavirus pandemic. — Beatrice M. Laforga