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tv   Counting the Cost  Al Jazeera  February 14, 2023 8:30am-9:01am AST

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fonts as possible, rescue efforts are underway and the defense force of the rallied. residents have been advised to stay away from rising cost. the waters, many region from the north was still recovering from record rain for 2 weeks ago. on the east coast of the north island and tire towns and settlements have been cut off due to eva rising, flood waters. all the roads going in and out of these places have been cut off by slips or fallen trees. in some places the entire road is gone. 100 the roads are impossible. land is continuing to slip under the weight of torrential rain and tens of thousands of people have no power rescue. i could say it's too early to assess the extent of the damage with the continuing to mit mikey, to hamper reflected. so can you bring laura hahn al jazeera? ah
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not your desert with me? civil robin in doha. reminder of our top new stories. it's been 8 days since to devastating earthquakes. to kia and syria. more than 37000 people have been declared dead across the 2 countries, but that toll is expected to rise. syrian president bashar al assad has agreed to allow deliveries to the rebel held north west through 2 additional border crossings . aid has now been arriving slowly in the country which was already hit and already ravaged by 12 years of civil war. against all the other small number of survivors have also been found a 13. y'all was rescued on monday, after 192 hours under the rubble of a collapsed apartment building in hattie in idea. man, a young girl was rescued after being trapped for more than 170 hours. some is done as more from nevada, in south east and took you well, a lot of the focus is going to be shifting. it's already started for a while,
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but it's going to be intensifying on the needs of those many who have survive. remember that the turkish president said, hundreds of thousands of buildings are uninhabitable. how many people does that leave? too many for authorities to have to house and they've been going through their resources as much as they can to try and provide temporary shelter to put people off in public buildings in schools and domes and so on. but there's a lot of people, police in the state of michigan say a suspect in a shooting has died after self inflicted wounds. the suspected gunman is reported to kill 3 people at the university in the city of east lansing. 5 others were injured firefighters in chile, still battling to contain a massive while fires that have been bending across the south central regions. 3300 fires, remain active, and new ones are repairing. at least 24 people have died since the blazes broke out with a week ago. and more than 1000 homes have been destroyed. the zealand is declared
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a national state of emergency due to the impact of cycling, gabrielle. it's the 3rd time in the country's history that the measures have been introduced. hundreds of people have been false to leave homes power outages. the also being reported in the region which is still recovering from recent surveys, flooding. and you can follow those stories on our website to thousands of a dot com updated throughout the day. more news and half now with me. but next on algebra its counting, the cost to stay with us. ah, 1956 to nicea gained independence from france. but the brutal power struggled broke out between the b to this is monica. and the countries nationalist prime minister al jazeera world, tells the story of the downfall of the dentist and folded the paper. i read to him the decision to shield the last monarch of tunisia, power and politics on a jessina.
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ah, i hello, i'm molly inside of this is counting the cost on al jazeera, your look at wells of business and economics. this week, the race for green subsidies is accelerating that you have set out a plan to boost the production of electric cause and renewable energy projects, but can on the block, keep off with the u. s. in china. also this week, brazil's president is loosening the past strings and he's threatened the central bags autonomy to mounting lower interest rates, will lead to silva's economic plan work. clos, hong kong is facing its highest rate of homelessness in a decade. we explore how one angio is helping people sleeping in tunnels or on the
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streets to find shelter. ah, the international energy agency estimates the global market for mass produced clean energy will triple to around $650000000000.00 a year by the year 2030. now the wells biggest economies want a slice of that growing industry. the united states recently announced the inflation reduction act. this includes billions of dollars in grants and loans to boost financing and deployment of new clean energy projects. but it sparked a trade dispute with its allies in europe. and now the e. u has set up its own plan to compete with the us as a production hub, the green products. it includes redeploying more than $270000000000.00 remaining from the east pandemic recovery fund. european commission has also suggested relaxing state aid rules to allow governments to pump cash into green industries,
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implants to make approvals for green projects, foster and c will trade agreements to secure supplies of critical rule materials that he also wants to create a european sovereignty found to invest in emerging technologies. so why is europe so threatened by america's inflation reduction acts? well, they fear that the aisle, 8th, $369000000000.00 a subsidies for electric vehicles and other clean technologies. could put companies based in europe at a disadvantage. for example, many of the tax breaks only applicable for products manufactured in north america, which could of course encourage european firms to ship production to the u. s. on the plan also provides tax credits to consumers who bought electric cars made in the u. s. which could again make european made electric vehicles less attractive to bias. but even with the biggest ever climate bill, the u. s. lived behind china is green spending last year. the energy research group,
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bloomberg any f says almost half of all global energy transition investments with $546000000000.00. while in china, they use as chinese subsidies have been twice as high as those in the block relative to g d, p. the u, as a single entity came 2nd at a $180000000000.00, while the us spent a $141000000000.00 from brussels on join. now, by milan elk about milan as a research fellow and head of the climate policy program at the center for european policy studies in brussels. thank you for joining the program. is the right to be threatened by the u. s. is inflation reduction act? well, yes. and no, on the one hand, the inflation reduction acts of a very general subsidies and the subsidies are combined with some other measures related to the components that need to be used in the production certain goods.
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and these are really a challenge to european industry. but on the other hand, no, because the inflation reduction acts still really as overwhelmingly a good thing. it is the 1st time that the u. s. pastor, they a comprehensive federal climate policy, which for the 1st time also target the greenhouse gas emissions coming from the industry and all these investments that the subsidies promote will lead to increased economies of scale and deaf, also lower costs for low carbon technologies. and that is really a good thing for all countries around the world. until now, industrial policy in the u has been restrained by very tough competition laws in order for them to have their own green tex pledge europe is going to have to change that. how tricky is that going to be for them? this is indeed a very important but difficult issue. what we should keep in mind is that these
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competition rules called state rules have been in place for a very long time. it actually goes back to the late 19 fifties, really the beginning of european integration, but then they have been also a lot more relax since the beginning of the damage. and the reason why was because due to all the luck dance, really extensive support to businesses to close wasn't necessary anyway. and nice, relaxed rules are still in place today. now there is a risk if we keep those rules, very relaxed that we get a subsidy rates between the members. and that's the very best thing within the european single market. so definitely if some interests from european policymakers also to make sure that we still have some degree of competition rules between the
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member states. but of course, they should not be so strict that the countries and the u. s. a whole cannot respond to this challenge coming from the us. so what do you make of the use green proposals? it has quite a few components. it's really not just only about subsidy, but also really look at what the bottlenecks that exists today that can slow down the role of, of clean technologies. and there are some things be on subsidies that are very important. one of those, this label, market skills in the labor markets and a lot of european countries are very tight that moment. another very important thing relates to purchasing renewables in particular are very economically competitive. already costs have come down enormously. so it's not really a question about money, but you can have all sorts of rules by local authority for people who would not
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like to see which ones in the neighborhood. and that can slow down the role of technologies as well. so foster permitting is also part of it. that's a good thing really when it comes to the subsidies europe passed for a long time, already supportive industry quite extensively, but it has done so in a very different way from the us. because the us a single country with a single fiscal policy, so it can really provide money very directly in the u. it's much more dispersed across different programs. and one of the most difficult things about the european approach is that we have a lot of administrative processes and certain outcomes for companies. the strength of the us approach is that companies know exactly how much money they will be able to get out of the inflation reduction act. so one part of the european response is
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also really about simplifying the rules. i'm making them more and more. but if that is a very good thing, it's interesting that you mentioned that point, that it's not just about spending, because when you look at the numbers, the u. s. the spending almost $370000000000.00 on subsidies. china subsidies are double that of europe. so how do you see europe competing with the u. s. in china when it comes to the green economy? to start with, maybe if we look at the number of the us, the 370000000000 us dollar been reported very extensively. it's a staggering slung in some way, but it's also for a 10 year period. so as a percentage of the u. s. g t p is well not that much. and a lot of this money is also for things like renewables or transport
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emissions reductions where europe really has some very serious and successful policy for the last 10 to 20 years already. so part of the american money is also for catching up to europe. then another 6070000000000 will really be about industry, and this is where most of the discussion is euro in europe is a box because the industrial factors are about traded goods. and this is where the competition can really play a role in europe has also supported industrial innovation quite a bit over the last decade. but it has really focused on the early stage innovation, basically research and development. what the us is doing now is providing direct funding for, for production and for investment. and that is something that we in europe do not
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have yes. and what we need to address in the future, so that there are, yeah, clear incentives, invest light technologies that are still more expensive. a funny, how do you see consumers benefiting from all this, from the subsidy race and the investments going on around the world in the green energy front. they ultimately over the long term as we have seen already with renewables such as maybe or on shore. and also wind, if you increase the scale of production in a certain technology and a certain product, the costs down to come down. it's not a rule that will or was applied, but in most cases, if you can increase a skill, then sean's will become more affordable. and that is a good thing for the company around the world. milan really interesting to talk to you about the subject, milan elk, about from the center european policy studies in brussel. thank you.
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iraq has re valued its currency as part beneatha to stabilize the foreign exchange market. the cabinet has approved the decision to set the exchange rate at $1300.00 dina's per us dollar. now the rocky dina has been selling at $1417.00 against the greenback before the us introduce tighter controls on transactions by commercial iraqi banks made up through what he has more from back that places are going golf heaney, rockies tours since mid november, the denado has declined against u. s. dollar. losing about 10 percent of its value. a bought on it says he double, it checks the price tags every time he comes to the supermarket and put that in there. i believe i hadn't let us do it. alpha shopper is blame it on the dollar exchange rate because most of the products are imported. in this case,
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the government should pay our salaries and dollars wad since november the u. s. has tightened the rules on international transfers to prevent money laundering. it's reduced cash flows to iraqi banks by about 80 percent. lou are the 100 for guided entity key. it's cleared u. s. federal reserve scrutinizing foreign transfers from iraq. and especially to those countries unfriendly with 2 u. s. army, such as iran, lebanon, but syria and yemen. consequently, iraq steal a virus transfers from the u. s. have been cut from $240000000.00 to only $22000000.00 on a day. the government has launched a campaign to combat illegal currency trading and promised to hold further discussions with washington to stabilize the exchange rate. will hire dodges on. this is one aspect of an economic challenge that requires a brave response and practical solutions to end the wrong financial policies inherited by the current government. in the mean time,
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the prime minister has extended credit to small businesses by half a $1000000000.00. despite government promises to continue the depreciation, many iraqis are worried about an increase in prices ahead of the holy month of ramadan. especially in imports such as gas and wheat, a number of currency exchanges have stopped trading, answered that is more certainty about trees. so many rockies blame the central bank for the shortage of dollars. others accused the united states of we promising the dollar. either way, it's the iraqi people who boot of the brand of the changes. brazil is the world's largest exporter of beef and the 2nd largest exporter of grain, yet tens of millions of brazilians on not getting enough to eat. the nations president made it clear that his governess, priority is reducing the number of hungry people. louise in our seo lillard da
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silva, has boosted spending for social welfare programs, but investors a worry that the measure could make brazil's debt more unsustainable an effect it's fiscal credibility. congress has suspended the government spending cap to allow lunar da silva to raise spending by an extra $28000000000.00 on social welfare and public works this year. the approval is a political victory for lula who started his 3rd term in january. the markets have tanked after the budget was passed, the nations finance minister announced to plan to more than half the government's deficit this year in an attempt to allay investor concerns. meanwhile, brazil central bank plans to keep interest rates at a 6 year high for longer than expected period. and as warned fiscal risks on the lula to silver says the current inflation target slows economic growth. and he threatened the central bags, independence, the chief of the central bank in 5th, the institution plans to act independently,
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adding that it's so tommy gives of the capacity to stabilize markets from mulligan, spain. i'm joined now by mariano machado. he is a principal analyst of the americas at global risk, various maple cross. thank you for joining the program. why all the government and the central bank in brazil at loggerheads when it comes to brazil's economy? thank you for having us today. and that's actually the $1000000.00 question i did happening with other countries and in the world monetary authorities decisions. this is the central banks and government positions in regards to spending our have created tensions all across the world. in brazil has been no exception to this. just recently the, the ro between the central bank president, campus network president of the country, la silva, has reached new heights. but despite technical discussions around interest, rayden and measures detain inflation. there's also seems to be
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a political background to we tend to believe that this is because compost net, though the central bank president has been nominated by the previous administration, the jade or sonata of ministry. and there is reason to believe that there is a degree of mistrust between the both of them. so basically we expect this tension to last a bit longer. live is actually threatened the autonomy of the central bank, hasn't he? i mean, how, how far would he go with that, and how important is it to brazil that the central bank remain independent? that's an excellent question. and actually, we're seeing lula barking, if you will, a lot. but the ability to bite it's, it's the real question here. so in terms of the independence of the central bank, in general data from the world bank and other research sources show that and in the been the central bank, it's that it's is actually an extremely useful asset in terms of rain and inflation and provide a monetary and polish a certainty ahead. in the case of brazil, this independence in particular, was passed just recently in 2021
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a couple of years ago. that are boy campbells. neither was nominated at this point . we believe that the next stage of this potential escalation between the 2 actors could be, ah, the upcoming nominations for some members of the directorate of the central bank members to bend in on, hulu lays able to nominate to those places. we will understand how this relationship michael forward, but all in all one things for a certain composite outdoor air canal li, been removed by conks and comp. congress has a choose for independence, so it will be a tough battlefield led to handle. yeah, it's interesting because the last time lena was empower, he didn't even have the central bank or to deal with it. so he, he's used some strong words at when it's when he's come to the central bank. he says there's no justification for the interest rate being at the current rate of $13.00. he says it's shameful and that there should be other tools used to fight inflation. she think he is justified in those comments. i think that luna has
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a top concern and that top concern is basically keeping the economy war. you cannot govern with an economy that is cool enough. and basically that could be the situation in brazil showing some of the highest interest rate net interest rate in the world perhaps. but in the end, are the true question is if the potential other ways to rain in inflation or at some degree useful for lou law as well. just to recap, you can think about, ah, a new fiscal plan to be presented to, to investment to society. that as expected to happen in the a couple of months, that was the announcement on behalf of the government. but laura knows that he cannot rule out, cannot govern on an empty wallet. so was simply to see the fine print of that blunt and full. if you can think of something that is also useful in terms of rain in inflation beyond interest rates, good b r. a much expected along a way to tax reform. but that bending homework has been a phone on the side of every single administration in brazil for the best part of
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the, of the last 3 decades, including last 2 previous administrations. and generally, when you look at the markets, investors don't seem to be convinced at all about louis plans. there's not amount of political will that can make, ah, one plus one equals 3. so basically, yes, there is, we are sienna. ah, if you want to call it a crisis self expectations between the testers, at least for the moment, local investors in the gaze of brazil and the government in terms of what's going to be the policy direction. recap in on a thing that i just mentioned when you have a central bank authority that has been emanated as independent and with a tenure that doesn't coincide, the stint doesn't coincide with the presidency. you face this risks, you faced, the risk of you can call a quotation, we in simpler terms, it would be having a, ah, less strict government in terms of fiscal and spend the measures and a, perhaps more strict sense for bunk authority. and this is the 1st time in brazil in
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which we are witnessing how policies be made with dis 2 pillars interact and encounter interacting with each other. how much of a concern is the ad brazil's debt situation, especially in line of newness plans when it comes to spending the seals death situation has been an issue of concern for a long time. now, this is not new to lula latest set. if analysis said that by 2025 bristles overall, our external depth to g d p ratio could reach some one along the lines of 108 per cent of g b. so that sir, a backbone concern that has been persistent and so far, no solution has been found. in this particular case, we tend to believe that lu days focus and much more on, on the ground type of concerns. this is again, keeping the economy running to assured that he can deliver what he was elected for . he was voted for happier times and he needs to make sure he delivers to
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a degree happier times. well, part of the reason he delivered happier times previously was because brazil had that commodity both in 2000 and t. this time the, the circumstances are very different given that do you think he can deliver? is he aware of the challenges that he is facing? indeed, it's a completely different setting for the last 3 point. oh, as we call it a completely different from his 2 previous presidential inclinations. and we're already, if, if the region serves as an example, we're already seeing other ah, left leaning governments in the region such as argentina, sheila, to a degree even columbia with gustavo federal, recently elected last year, ah, struggling exactly with the same dilemma i'm riding to office with abundance promises of deliver in economic prosperity. nonetheless, finding a completely different set in, in terms of governance. we're seeing weaker governance,
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with inability to just steam roll. there are policy priorities. and on the external side, we're seeing a much shake your geopolitical context. that doesn't allow for this promises to be a bank rolled in the way that there used to be ah, the inner circle of lou lays, very much aware of this. so one month and change into his 3rd presidency. we believed that we're still seeing different elements in the coalition accommodate in traditional reality, and perhaps that we have more clarity on the backend of this year. marianna met machado, really get to talk to you on monday. i know our principal analyst of the americas and global risk v risk map across. thank you for your time. a pleasure. hong kong is facing the highest rate of homelessness in a decade. it's one of the most expensive cities to live in, and rising inflation has sent the cost of everything from food to rent. a soaring, jessica washington met some of the people in hong kong,
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forced to make the street their home. this is the image of hong kong that dazzles visitors, a bustling, glamorous city, but under ground a different reality appears. oh. busy there are many mosquitoes and bed bugs here. you see so many on getting fungal infections. he has slept here for 4 years and looks to rubbish bins for left over food in takeaway boxes, official figures released in november show the number of people experiencing homelessness. is the highest in a decade, and there's a sharp rise in the number if women experiencing housing insecurity. that report also said there's need for better services and more funds for hostile accommodation . as the situation worsens. this is a very wealthy city. you know, it's, it's extremely wealthy with one and 5 at this moment, or having food insecurity. they cannot afford 3 meals a day. you know, it's, it's an amazing city where you see the house and the have nots and in your face all the time. impact h. k isn't in geo founded in 2017. so far they've helped around 500 people find
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shelter. they also welcomed people into their community centers for hot meals and fresh clothes over 90 percent of those individuals have no emergency contacts. they have no friend or found, or a member in their life. in the isolation, you know, plays a huge role in their, you know, step towards becoming homeless. he says, emergency shelter is provided by the government, don't address the needs of the city and a difficult for people to access. the hong kong government told down to 0 social workers give assistance to those willing to accept services. in tyco china, there are more than 30 people sharing this underground space. it's the middle of winter here in hong kong, and the temperature often drops below 10 degrees at night. people in this underpass of repairing for another night exposed to freezing conditions. alec used to be one of them. he spent almost 20 years on the streets. yet. oh, how i have a place to live. i have food to eat and
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a job. i'm happy and more cheerful now. now he works in the community center, distributing food and essentials to people sleeping outside, helping them through the same dark days he experienced during his time on the streets. that is our site for this week. get in touch with us by twisting may at mullin, site and do use the hash tag a j c c c, when e j, or drop us an e mail counter, the cost at al jazeera dot net is our address that mo, for you online al jazeera dot com slash ctc. that'll take you straight to our page, which adds individual ports, links an entire episodes for you to catch up on that is it for this edition of counting the cost? i'm mullins, i even the whole team i spent joining us. the news on al jazeera is next ah ah.
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