World has entered recession, says IMF

News Network
March 28, 2020

Washington, Mar 28: The world is in the face of a devastating impact due to the coronavirus pandemic and has clearly entered a recession, the International Monetary Fund said on Friday, but projected a recovery next year.

"We have reassessed the prospects for growth for 2020 and 2021. It is now clear that we have entered a recession as bad or worse than in 2009. We do project recovery in 2021," IMF Managing Director Kristalina Georgieva told reporters at a news conference.

Georgieva was addressing the press after a meeting of governing body of the IMF, the International Monetary and Financial Committee. Representing 189 members, the body met virtually to discuss the unprecedented challenge posed to the world by COVID-19.

The key to recovery in 2021, she said, is only if the international community succeeds in containing the virus everywhere and prevent liquidity problems from becoming a solvency issue.

"The US is in recession, as is the rest of the advanced economies of the world. And in a big chunk of developed and emerging markets in developing economies. How severe? We are working now on our projections for 2020, Georgieva said in response to a question.

The new projections are expected in the next few weeks.

Stressing that while containment is the main reason for the economy to stand still and get into a recession, she said containment is very necessary to come out of this period and step in to recovery. "Until the virus is not contained, it would be very difficult to go to the lives we love."

"A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery. But can erode the fabric of our societies," the IMF chief said.

To avoid this from happening, many countries have taken far-reaching measures to address the health crisis and to cushion its impact on the economy, both on the monetary and on the fiscal side, she said.

The IMF chief said 81 emergency financing requests, including 50 from lower-income countries, have been received. She said current estimate for the overall financial needs of emerging markets is 2.5 trillion dollars.

"We believe this is on the lower end. We do know that their own reserves and domestic resources will not be sufficient," she added.

The G-20, a day earlier, reported fiscal measures totalling some 5 trillion dollars or over 6 per cent of the global GDP.

Responding to another question, Georgieva said the IMF is projecting recession for 2020.

"We do expect it to be quite deep and we are very much urging countries to step up containment measures aggressively so we can shorten the duration of this period of time when the economy is in standstill," she said.

"And also to apply well-targeted measures, primarily focusing on the health system to absorb that enormous stress that comes from coronavirus. And on people, businesses and the financial system, I am very pleased to say that when we went through countries' responses, that sense of targeted fiscal measures is there and are also very impressive to see the size of these measures," she added.

"Countries are doing all they can on the fiscal and on the monetary front. We have heard from our members' very impressive decisions taken over the last days," the IMF chief said.

"We also want to caution that as we are responding now, we want to make the recession as possibly short and not too deep. We also want to think about what is going to follow the recovery and make sure that we are putting forward measures that can be supportive in this regard," she said.

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Agencies
July 1,2020

The ILO has warned that if another Covid-19 wave hits in the second half of 2020, there would be global working-hour loss of 11.9 percent - equivalent to the loss of 340 million full-time jobs.

According to the 5th edition of International Labour Organisation (ILO) Monitor: Covid-19 and the world of work, the recovery in the global labour market for the rest of the year will be uncertain and incomplete.

The report said that there was a 14 percent drop in global working hours during the second quarter of 2020, equivalent to the loss of 400 million full-time jobs.

The number of working hours lost across the world in the first half of 2020 was significantly worse than previously estimated. The highly uncertain recovery in the second half of the year will not be enough to go back to pre-pandemic levels even in the best scenario, the agency warned.

The baseline model – which assumes a rebound in economic activity in line with existing forecasts, the lifting of workplace restrictions and a recovery in consumption and investment – projects a decrease in working hours of 4.9 percent (equivalent to 140 million full-time jobs) compared to last quarter of 2019.

It says that in the pessimistic scenario, the situation in the second half of 2020 would remain almost as challenging as in the second quarter.

“Even if one assumes better-tailored policy responses – thanks to the lessons learned throughout the first half of the year – there would still be a global working-hour loss of 11.9 per cent at the end of 2020, or 340 million full-time jobs, relative to the fourth quarter of 2019,” it said.

The pessimistic scenario assumes a second pandemic wave and the return of restrictions that would significantly slow recovery. The optimistic scenario assumes that workers’ activities resume quickly, significantly boosting aggregate demand and job creation. With this exceptionally fast recovery, the global loss of working hours would fall to 1.2 per cent (34 million full-time jobs).

The agency said that under the three possible scenarios for recovery in the next six months, “none” sees the global job situation in better shape than it was before lockdown measures began.

“This is why we talk of an uncertain but incomplete recovery even in the best of scenarios for the second half of this year. So there is not going to be a simple or quick recovery,” ILO Director-General Guy Ryder said.

The new figures reflect the worsening situation in many regions over the past weeks, especially in developing economies. Regionally, working time losses for the second quarter were: Americas (18.3 percent), Europe and Central Asia (13.9 percent), Asia and the Pacific (13.5 percent), Arab States (13.2 percent), and Africa (12.1 percent).

The vast majority of the world’s workers (93 per cent) continue to live in countries with some sort of workplace closures, with the Americas experiencing the greatest restrictions.

During the first quarter of the year, an estimated 5.4 percent of global working hours (equivalent to 155 million full-time jobs) were lost relative to the fourth quarter of 2019. Working- hour losses for the second quarter of 2020 relative to the last quarter of 2019 are estimated to reach 14 per cent worldwide (equivalent to 400 million full-time jobs), with the largest reduction (18.3 per cent) occurring in the Americas.

The ILO Monitor also found that women workers have been disproportionately affected by the pandemic, creating a risk that some of the modest progress on gender equality made in recent decades will be lost, and that work-related gender inequality will be exacerbated.

The severe impact of Covid-19 on women workers relates to their over-representation in some of the economic sectors worst affected by the crisis, such as accommodation, food, sales and manufacturing.

Globally, almost 510 million or 40 percent of all employed women work in the four most affected sectors, compared to 36.6 percent of men, it said.

The report said that women also dominate in the domestic work and health and social care work sectors, where they are at greater risk of losing their income and of infection and transmission and are also less likely to have social protection.

The pre-pandemic unequal distribution of unpaid care work has also worsened during the crisis, exacerbated by the closure of schools and care services.

Even as countries have adopted policy measures with unprecedented speed and scope, the ILO Monitor highlights some key challenges ahead, including finding the right balance and sequencing of health, economic and social and policy interventions to produce optimal sustainable labour market outcomes; implementing and sustaining policy interventions at the necessary scale when resources are likely to be increasingly constrained and protecting and promoting the conditions of vulnerable, disadvantaged and hard-hit groups to make labour markets fairer and more equitable.

“The decisions we adopt now will echo in the years to come and beyond 2030. Although countries are at different stages of the pandemic and a lot has been done, we need to redouble our efforts if we want to come out of this crisis in a better shape than when it started,” Ryder said. 

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News Network
June 4,2020

New York, Jun 4: The Minneapolis police officer who used his knee to pin down George Floyd's neck before his death was the most experienced of the four officers involved in the arrest, with a record that included medals for bravery and 17 complaints against him, including one for pulling a woman out of her car during a speeding stop.

New details about Derek Chauvin and the other now-fired officers emerged Wednesday after prosecutors upgraded Chauvin's charge to second-degree murder and charged the others with aiding and abetting in a case that has convulsed the nation with protests over race and police brutality.

Heavily redacted personnel files show that Chauvin, a 19-year veteran of the force, was initially trained as a cook and served in the Army as a military police officer.

Eleven-year veteran and native Hmong speaker Tou Thao began as a community service officer and was the subject of six complaints.

The other two officers were relative newcomers to the department, including Thomas Lane, a former juvenile detention guard who did volunteer work with Somali refugees, and J. Alexander Kueng, who got his start in law enforcement by patrolling his college campus and a department store.

The files were notable for what they didn't include. Only one of the 17 complaints against Chauvin was detailed, none of the six against Thao were mentioned and there was no further detail about a 2017 excessive force lawsuit against Thao.

Records show that the 44-year-old Chauvin initially studied cooking before taking courses in law enforcement and doing two stints in the Army as a military police officer in the late 1990s, serving at Fort Benning, Georgia, and in Germany.

Chauvin became a Minneapolis police officer in 2001 and the lone reprimand in his file involved a 2007 incident when he was accused of pulling a woman out of her car after stopping her for going 10 mph (16 kph) over the speed limit.

Investigators found it was not necessary for Chauvin to remove the woman from the car and noted that his squad car video was turned off during the stop.

But Chauvin was also singled out for bravery. Files show he won two medals of valor, one in 2006 for being part of a group of officers who opened fire on a stabbing suspect who pointed a shotgun at them, and another in 2008 for a domestic violence incident in which Chauvin broke down a bathroom door and shot a suspect in the stomach.

He also won medals of commendation in 2008 after he and his partner tackled a fleeing suspect who had a pistol in his hand, and in 2009 for single-handedly apprehending a group of gang members while working as an off-duty security guard at the El Nuevo Rodeo, a Minneapolis nightclub.

Since his arrest, the former owner of the club, Maya Santamaria, said Chauvin and Floyd both worked as security guards there at various times but that she wasn't sure if they had known one another.

She said Chauvin was unnecessarily aggressive on nights when the club had a black clientele, quelling fights by dousing the crowd with pepper spray and calling in several police squad cars as backup, a tactic she called “overkill.”

Chauvin's wife, Kellie, a Laotian immigrant who became the first Hmong winner of the Mrs. Minnesota pageant, said shortly after his arrest last week that she intends to divorce him.

Before news of the upgraded charges, an attorney for Chauvin said he was not making any statements at this time. Lawyers for the others did not return messages seeking comment.

In cellphone video of the May 25 arrest of Floyd, Chauvin is shown pressing his knee onto Floyd's neck for more than eight minutes while Floyd cries out “I can't breathe” and eventually stops moving.

During much of the arrest, Kueng and Lane were helping Chauvin restrain Floyd. Thao was standing nearby keeping onlookers back.

According the complaint, at one point during the arrest, as Chauvin held Floyd down with his knee, Lane asked Chauvin twice whether they should roll Floyd over.

“No, staying put where we got him,” Chauvin replied, “I am worried about excited delirium or whatever,” Lane said. And Chauvin replied again, “That's why we have him on his stomach.” None of the three officers moved from their positions.

Lane joined the police early last year as a 35-year-old cadet — much older than most rookies — and became a full-fledged officer last December. He had no complaints in his file during his short time on the force.

On employment forms, the University of Minnesota graduate said he done volunteer work tutoring Somali youth and as a mentor helping at-risk elementary school students with reading and homework.”

Kueng, at 26 the youngest of the four officers, was also a recent recruit to the police force. He completed his year's probation just three months before the Floyd arrest.

His personnel file, which notes that he speaks, reads and writes Russian, did not include any commendations or disciplinary actions during his short time on force.

Kueng was a 2018 graduate of the University of Minnesota, where he worked part-time as part of the campus security force. He also worked nearly three years as a theft-prevention officer at Macy's.

Thao joined the police force part-time in 2008 while attending a community college. Before that, he worked as a security guard, a supermarket stocker and trainer at McDonald's.

City records show six complaints were filed against Thao, but there was no mention of that in the records released Wednesday. There also was no mention of a 2017 federal lawsuit accusing him and another officer of excessive force.

According to the lawsuit, Lamar Ferguson claimed that in 2014, Thao and his partner stopped him and beat him up while he was on his way to his girlfriend's house. The lawsuit was settled for $25,000 ___

Richmond reported from Madison, Wisconsin. Associated Press writer Scott Bauer in Madison and researcher Rhonda Shafner in New York contributed to this report.

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News Network
June 2,2020

Minneapolis, Jun 2: An official autopsy released Monday ruled that George Floyd, the African-American man whose death at police hands set off unrest across the United States, died in a homicide involving "neck compression".

George, 46, died of "cardiopulmonary arrest complicating law enforcement subdual, restraint, and neck compression," and the manner of death was "homicide," the Hennepin County Medical Examiner in Minneapolis said in a statement.

Floyd's other significant health conditions were listed as "arteriosclerotic and hypertensive heart disease; fentanyl intoxication; recent methamphetamine use."

The statement added that the "manner of death is not a legal determination of culpability or intent."

It emphasized that under Minnesota state law "the Medical Examiner is a neutral and independent office and is separate and distinct from any prosecutorial authority or law enforcement agency."

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