IMF Committee warns against complacency, says global economic recovery incomplete

Agencies
October 15, 2017

Washington, Oct 15: Despite the global upswing in economic activity, the IMF's steering committee has warned policymakers to guard against complacency, citing medium-term economic risks and rising geopolitical tensions.

The International Monetary and Finance Committee (IMFC), in a communique issued, said there has been a notable pickup in investment, trade, and industrial production.

"But, the (global economic) recovery is not yet complete, with inflation below target in most advanced economies, and potential growth remains weak in many countries," the communique said.

"Near-term risks are broadly balanced, but there is no room for complacency because medium-term economic risks are tilted to the downside and geopolitical tensions are rising," it further said, adding that the upturn in global activity provided a window of opportunity to tackle key policy challenges and stave off downside risks.

The committee advised the policymakers to go for "accommodative" monetary policies and fiscal policies that are "flexible and growth-friendly."

"Monetary policy should remain accommodative, where inflation is still below target and output gaps are negative, consistent with central banks’ mandates, mindful of financial stability risks, and underpinned by credible policy frameworks," it said.

"Structural reforms, well-sequenced and adapted to individual country circumstances, should aim to lift productivity, growth, and employment; promote competition and market entry, and enhance resilience," it further said.

The committee also warned against excessive volatility in exchange rates, saying it may adversely impact economic stability.

"Flexible exchange rates, where feasible, can serve as a shock absorber, but, excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and financial stability," the IMF communique said

In their communique, the IMF member nations said they were committed against competitive currency devaluations.

"The IMF member countries pledged to work together to achieve a level playing field in international taxation; address tax and competition challenges raised by the digitalisation of the economy; and tackle the sources and channels of terrorism financing, corruption, and other illicit finance," the communique said.

The countries also pledged to work towards reducing excessive global imbalances in a way that supports global growth by pursuing appropriate and sustainable policies.

"The IMF members countries reinforced their commitment to achieve strong, sustainable, balanced, inclusive, and job-rich growth, and said to this end, they will use all policy tools— monetary and fiscal policies and structural reforms—both individually and collectively," the communique said.

"We will support countries dealing with the macroeconomic consequences of pandemics, cyber risks, climate change and natural disasters, energy scarcity, conflicts, migration, and refugee and other humanitarian crises," it said.

The meeting was chaired by the Governor of Bank of Mexico, Agustín Carstens. It was attended by IMF chief Christine Lagarde and Finance Minister Arun Jaitley, along with other dignitaries from across the globe.

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News Network
June 23,2020

Jun 23: US President Donald Trump has issued a proclamation to suspend issuing of H-1B visas, which is popular among Indian IT professionals, along with other foreign work visas for the rest of the year.

Trump said the step was essential to help millions of Americans who have lost their jobs due to the current economic crisis.

Issuing the proclamation ahead of the November presidential elections, Trump has ignored the mounting opposition to the order by various business organisations, lawmakers and human rights bodies.

The proclamation that comes into effect on June 24, is expected to impact a large number of Indian IT professionals and several American and Indian companies who were issued H-1B visas by the US government for the fiscal year 2021 beginning October 1.

They would now have to wait at least till the end of the current year before approaching the US diplomatic missions to get stamping. It would also impact a large number of Indian IT professionals who are seeking renewal of their H-1B visas.

“In the administration of our Nation's immigration system, we must remain mindful of the impact of foreign workers on the United States labour market, particularly in the current extraordinary environment of high domestic unemployment and depressed demand for labour,” said the proclamation issued by Trump.

In his proclamation, Trump said that the overall unemployment rate in the United States nearly quadrupled between February and May of 2020 -- producing some of the most extreme unemployment rates ever recorded by the Bureau of Labor Statistics.

While the May rate of 13.3 percent reflects a marked decline from April, millions of Americans remain out of work.

The proclamation also extends till the end of the year his previous executive order that had banned issuing of new green cards of lawful permanent residency.

Green card holders, once admitted pursuant to immigrant visas, are granted "open-market" employment authorisation documents, allowing them immediate eligibility to compete for almost any job, in any sector of the economy, he said.

“American workers compete against foreign nationals for jobs in every sector of our economy, including against millions of aliens who enter the United States to perform temporary work. Temporary workers are often accompanied by their spouses and children, many of whom also compete against American workers,” Trump said.

“Under ordinary circumstances, properly administered temporary worker programmes can provide benefits to the economy. But under the extraordinary circumstances of the economic contraction resulting from the COVID-19 outbreak, certain non-immigrant visa programmes authorising such employment pose an unusual threat to the employment of American workers,” he said.

For example, Trump said, between February and April of 2020, more than 17 million United States jobs were lost in industries in which employers are seeking to fill worker positions tied to H-2B nonimmigrant visas.

“During this same period, more than 20 million United States workers lost their jobs in key industries where employers are currently requesting H-1B and L workers to fill positions,” he said.

“Also, the May unemployment rate for young Americans, who compete with certain J non-immigrant visa applicants, has been particularly high -- 29.9 percent for 16-19-year-olds, and 23.2 percent for the 20-24-year-old group,” he said.

“The entry of additional workers through the H-1B, H-2B, J, and L non-immigrant visa programmes, therefore, presents a significant threat to employment opportunities for Americans affected by the extraordinary economic disruptions caused by the COVID-19 outbreak,” Trump said.

Trump observed that excess labour supply is particularly harmful to workers at the margin between employment and unemployment -- those who are typically "last in" during an economic expansion and "first out" during an economic contraction.

In recent years, these workers have been disproportionately represented by historically disadvantaged groups, including African Americans and other minorities, those without a college degree, and Americans with disabilities, he said.

The proclamation suspends and limits entry into the US of H-1B, H-2B and L visas and their dependents till December 31, 2020. It also includes certain categories of J visas like an intern, trainee, teacher, camp counselor, or summer work travel programme.

The new rule would apply only to those who are outside the US, do not have a valid non-immigrant visa and an official travel document other than a visa to enter the country.

According to the proclamation, it does not have an impact on lawful permanent residents of the United States and foreign nationals who are spouses or child of an American citizen.

Foreign nationals seeking to enter the US to provide temporary labour or services essential to the food supply chain are also exempted from the latest proclamation.

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News Network
February 1,2020

New Delhi, Feb 1: India on Friday banned the export of personal protection equipment such as masks and clothing amid a global coronavirus outbreak.

It did not give a reason for the ban but it reported its first case of the new coronavirus on Thursday, a woman in Kerala who was a student of Wuhan University in China.

The central Chinese city of Wuhan is the epicentre of the outbreak, and the virus has since spread to more than 9,800 people globally and killed 213 people in China.

Several Indian citizens living in Wuhan will arrive in India by plane on Saturday and be taken to a quarantine centre on the outskirts of the capital New Delhi.

India, the world’s second most heavily populated country after China, has taken measures to ensure that all people arriving from China report to health authorities.

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Agencies
May 8,2020

United Nations, May 8: UN Secretary-General Antonio Guterres said Friday the coronavirus pandemic keeps unleashing a tsunami of hate and xenophobia, scapegoating and scare-mongering. 

The UN chief said anti-foreigner sentiment has surged online and in the streets, anti-Semitic conspiracy theories have spread, and COVID-19-related anti-Muslim attacks have occurred. 

Guterres said migrants and refugees have been vilified as a source of the virus -- and then denied access to medical treatment. 

With older persons among the most vulnerable, contemptible memes have emerged suggesting they are also the most expendable, he said. 

And journalists, whistleblowers, health professionals, aid workers and human rights defenders are being targeted simply for doing their jobs. 

Guterres appealed for an all-out effort to end hate speech globally. The secretary-general called on political leaders to show solidarity with all people, on educational institutions to focus on digital literacy at a time when extremists are seeking to prey on captive and potentially despairing audiences. 

He called on the media, especially social media, to remove racist, misogynist and other harmful content, on civil society to strengthen their outreach to vulnerable people, and on religious figures to serve as models of mutual respect. 

And I ask everyone, everywhere, to stand up against hate, treat each other with dignity and take every opportunity to spread kindness, Guterres said.

The secretary-general stressed that COVID-19 does not care who we are, where we live, what we believe or about any other distinction. His global appeal to address and counter COVID-19-related hate speech follows his April 23 message calling the coronarivus pandemic a human crisis that is fast becoming a human rights crisis. 

Guterres said then that the pandemic has seen disproportionate effects on certain communities, the rise of hate speech, the targeting of vulnerable groups, and the risks of heavy-handed security responses undermining the health response. 

With rising ethno-nationalism, populism, authoritarianism and a push back against human rights in some countries, the crisis can provide a pretext to adopt repressive measures for purposes unrelated to the pandemic, he warned.

In February, Guterres issued a call to action to countries, businesses and people to help renew and revive human rights across the globe, laying out a seven-point plan amid concerns about climate change, conflict and repression.

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