Connect with us

Analysis

New CBI boss heralds change for UK’s largest employers group

Published

on


The CBI will reset its goals next year with a new economic focus and mandate to work more closely with the government to improve national competitiveness, according to new boss Tony Danker.

Mr Danker, who took over last week as director-general of the CBI from Carolyn Fairbairn, wants businesses to “act in the national interest” to help return the economy to growth. He said that the UK was facing a “once in fifty years opportunity to change the trajectory of the British economy”. 

After several years of frosty relations with the government — largely caused by disagreements over Brexit — Mr Danker is also clear that the CBI will work much more closely with Boris Johnson’s ministers to deliver economic growth.

“The CBI needs to be in the service of a growing, thriving economy that’s good for our members,” he said.

Belfast-born Mr Danker, 48, has joined the CBI from Be the Business, a government and industry-backed body that supports business productivity. Be the Business was largely non-adversarial by design and the CBI role will involve more front line lobbying work over issues such as helping ensure businesses have the right support after the end of the Brexit transition period on December 31. 

Nonetheless, once the UK leaves the EU trading bloc in January, Mr Danker said that business and government will be “in a much more aligned place”, pointing to common goals to deliver a more competitive economy after Brexit is concluded.

He also said that the close work between the CBI and the Treasury to shape the Covid-19 economic support packages showed how industry and government could work together.

In the spring, the CBI will produce a report on the economic future of the UK which will also dictate its own goals and structure. “We will need to change too. Once we have that economic vision, we will get to that,” said Mr Danker, a former head of strategy at The Guardian who also worked at McKinsey, the management consultancy.

“I don’t want the CBI to just be an organisation that lobbies and publishes reports, I want the CBI to be an organisation that leads,” he added. “I want to find new ways of putting our hands up and saying we are going to help deliver this new economy — to build this more regionally competitive, diverse, net zero economy, and that might mean changing the things we do and the way we do them.”

He wants businesses to follow suit. Responding to a question about the UK being on a wartime economic footing, he said Britain needed business and government to pull together in similar fashion to that period. “It’s the closest our generation has been.” 

Mr Danker met chancellor Rishi Sunak in his first week, where the discussion was focused on how business could work with the government to help rebuild the economy. He has also held meetings with officials in Number 10, saying of Mr Johnson: “He is definitely pro enterprise by instinct.” 

Although he wants the CBI to start thinking about the future, he admits that dealing with the twin challenges of Covid-19 and Brexit will dominate in the short term. He has set up a Brexit task force to discuss the practical problems that will confront companies. 

“It’s getting incredibly serious to business people who need to make decisions,” said Mr Danker. “They need maximum guidance to make good decisions. It’s not over in January. It will take months to implement well.”

Brexit will, he said, require the UK to think much more “proactively and aggressively” about its competitiveness in the world. To help with this, he wants the CBI to support the government’s net zero carbon emissions push, boost entrepreneurial interests and grow regional competitiveness to a national level. 

He also wants to keep growing the membership of the CBI, which says it represents 190,000 businesses employing nearly 7m people, pointing to the importance of attracting new members from smaller businesses in particular. The CBI has given complimentary memberships to some SMEs during the pandemic, which has led to people converting to paid membership.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Analysis

Third Covid wave pushes Poland’s health system to limits

Published

on

By


After Michal Drozdz, a Warsaw paramedic, pulls up outside a hospital, his ambulance often has to queue for hours before his patients are admitted.

“This has been happening all the time for three weeks. Every shift there’s a real threat you’ll have to spend it waiting in front of a hospital,” he said. “Sometimes it’s two hours, sometimes six . . . During that time you can’t help anyone, which is what this job should be about.”

It is not just Warsaw that is struggling. Across Poland, the health system has been brought close to its limits as the central European nation battles through its most difficult days of the coronavirus pandemic so far.

Infections have surged since early March and on April 1 hit their highest daily level since the pandemic began. In the past fortnight, Poland has recorded 989 cases per 100,000 inhabitants, the third highest figure in the EU. Deaths have surged to record levels and the number of people in hospitals and on ventilators with Covid-19 have also touched all-time highs.

“The scale is incomparable [with the first wave],” said Drozdz. “Back then there were a few confirmed cases per district. Now it’s a few confirmed cases per block of flats.”

As elsewhere in Europe, the surge has been caused by the arrival of the more infectious B.1.1.7 strain of the virus first sequenced in the UK, which in recent weeks has accounted for 90 per cent of new cases in Poland.

A nurse attends to patients at an emergency ward in Bochnia, Poland. The country has the lowest number of practising physicians per capita in the EU © Omar Marques/Getty Images

But critics say the government also made errors that let the strain spread more quickly: first, by not enforcing rigorous enough checks on the thousands of Poles who returned from the UK for Christmas; and second, by loosening restrictions in mid-February once the British variant was already circulating.

The huge inflow of patients has left the health system reeling. Although about a quarter of Covid-19 beds and 20 per cent of ventilators are still free, they are not always in the same place as the people who need them.

Some 150 patients had to be moved from the southern Silesia region to other areas this month after local hospitals were overwhelmed. In the Mazovia region, officials were so worried about oxygen supplies before Easter that doctors were asked to limit the use.

The biggest problem, however, is a lack of staff, the result of years of high emigration and chronic health system underfunding. A Eurostat study in 2018 found that Poland had the lowest number of practising physicians per capita in the EU, with just 238 per 100,000 inhabitants.

“It’s not just Covid that’s the problem. It has just highlighted how insufficient our health system is,” said one young doctor recently sent to work with Covid patients in a Warsaw hospital.

In an effort to regain control of the situation, the government imposed new restrictions in mid-March, which it extended last week to April 18. It has also used powers allowing it to oblige medical professionals to switch from their normal jobs to treating coronavirus patients, and repeatedly expanded the number of Covid beds and ventilators in Poland’s hospitals.

Medical staff at the intensive care unit of Krakow University Hospital. The government has used powers obliging health professionals to switch from their normal jobs to treating coronavirus patients © Omar Marques/Getty Images

Adam Niedzielski, health minister, said on Friday there were signs that the surge in infections was beginning to ebb and that a peak in hospitalisations was imminent. He added that Poland would now also speed up its vaccination drive by broadening the groups of people allowed to give jabs.

“[Accelerating vaccinations] is the only possible answer, given the available resources, to fight the pandemic and get out of the third wave,” he said. “It is a very difficult time and therefore special solutions are needed.”

Yet doctors in hospitals in hard-hit areas are still scrambling to cope, with small teams juggling large numbers of seriously ill patients. The Warsaw doctor said a particular challenge for new staff was helping patients who needed intubation because their oxygen levels were dropping — a procedure normally carried out by specialists.

“You just have to wait for the call from the anaesthetist,” she said. “You don’t get emotional because that’s what we do on a daily basis — but you feel a bit insufficient as a doctor . . . You feel helpless.”

The shortages have left medical staff with huge workloads. “[My colleagues] are exhausted. You don’t have to ask, you can see it when they come off their shifts. I’ve just done my first few shifts and that was the hardest day and a half in my life,” said a second doctor recently deployed to a hospital for Covid patients in Warsaw. “Those who have been working here since February look as if they were seriously ill already.”

To boost their energy, some medics have resorted to giving themselves oxygen and intravenous drips, according to Polish media. Asked about the accounts by Radio RMF24, Niedzielski acknowledged that staff shortages were “noticeable” and described Poland’s medics as “heroes”. “This really is a war and the situation requires non-standard behaviour,” he said.

On top of the exhaustion, medics also have to deal with the psychological pressure that comes with confronting death so frequently. Treating couples where one partner was far sicker than the other, or parents who would not survive, was particularly tough, the second doctor said.

“Sometimes it is easier not . . . to build up links with patients because then when they die I feel like I have lost someone close myself, someone whom I fed and gave stuff to drink, whose hand I held,” she said.

“But on the other hand . . . I cannot imagine cutting off all these emotions completely. You have to find the golden mean. But it’s not easy.”



Source link

Continue Reading

Analysis

Iranian TV action thriller delivers warning to Zarif

Published

on

By


It is hardly surprising that Mohammad Javad Zarif, Iran’s foreign minister and nuclear negotiator, is not a fan of Gando, a popular television drama that depicts an incompetent minister who scuppers nuclear talks with world powers by hiring dual nationals who turn out to be spies for MI6.

The series — made by an institute believed to be affiliated to the elite and hardline Revolutionary Guards — “is a lie from the beginning to the end” that “damages foreign policy more than me” by fuelling public mistrust, Zarif said.

By focusing on the nuclear talks, the Guards’ motive goes beyond creating compelling drama, reformist analysts say. Iran is in discussion with western powers about reviving the nuclear deal, a key reformist achievement, and hardliners want to deter the popular foreign minister from declaring his interest in the presidency in what is a crucial election year.

“I’ll be grateful to Gando-makers to let us continue our current job,” Zarif said this month, and commented that he would not run for the presidency.

The possibility of nuclear talks with the US and other powers has complicated an already fraught Iranian political scene ahead of the June election. Many reformists are pinning their hopes on Iran’s top diplomat to reinvigorate the nuclear deal and boost support at the ballot box. Hardliners might prefer to negotiate the deal themselves after the election. The polls are also seen as particularly crucial in case supreme leader Ayatollah Ali Khamenei, 81, dies during the next president’s term.

Pendar Akbari, left, and Ashkan Delavari, right, in a scene from ‘Gando’
Pendar Akbari, left, and Ashkan Delavari, right, in a scene from an episode of ‘Gando’. The series title refers to an Iranian crocodile able to distinguish its friends from its enemies © Bahar Asgari/Shahid Avini Cultural and Artistic Institute via AP

The purpose of Gando, which refers to an Iranian crocodile able to distinguish its friends from its enemies, “is to tell Zarif that should he dare to announce his candidacy, he will be destroyed immediately,” said one reformist analyst. “When the intelligence service of the Guards truly believes in the Gando plot lines, it means even if Zarif decides to defy such warnings, he will not be allowed to run.”

Centrist president Hassan Rouhani is due to step down this year after two terms and it is not yet clear who the presidential candidates will be. Politicians register as late as May and then have to be vetted by the Guardian Council, the hardline constitutional watchdog, which can disqualify nominees. Potential hardline candidates include Mohammad Bagher Ghalibaf, the parliament speaker and a former guards commander; Ebrahim Raisi, the judiciary chief; and Ali Larijani, a former speaker of parliament. On the reformist side, speculation has centred on Es’haq Jahangiri, first vice-president, Hassan Khomeini, a grandson of the founder of the Islamic republic, and Zarif.

A US-educated career diplomat widely respected in the west for his pragmatism, Zarif was instrumental in the historic deal in 2015, under which Iran curbed its nuclear activity in exchange for the lifting of sanctions. But Donald Trump abandoned the accord in 2018, imposed sanctions, including on Zarif, and said he would pursue a new accord to contain Iran’s regional and military policies. The US move emboldened hardliners, confirming to them the untrustworthiness of the US.

Zarif’s background in the US both as a university student and as Iran’s head of mission at the UN — during which he met US politicians including then senator Joe Biden — has long made him a source of suspicion for hardliners.

This wariness of both Zarif and the west is evident to viewers of Gando, as is the heroism of the Revolutionary Guards. Mohammad, the action hero protagonist, warns that western negotiators may sabotage refineries as part of nuclear talks. Mohammad works out of elaborate facilities akin to those in a James Bond film. The fictional foreign minister is advised by a media adviser, the main culprit, “to enter into direct talks with the US and accept the conditions of the leader of the global village”.

Vahid Rahbani in a scene from an episode of ‘Gando’
Vahid Rahbani in a scene from an episode of ‘Gando’. State TV abruptly stopped broadcasting the series that was less than halfway through its 30-episode run © Hassan Hendi/Shahid Avini Cultural and Artistic Institute via AP

The dramatic scenes reflect, in part, the worldview of some of Zarif’s critics. “Reformists, Mr Zarif and his lobby group in Washington [Iranian dual nationals] should be wiped out from Iran’s politics,” said an aide to a senior hardline politician who is a potential presidential candidate. “We have to get rid of this cancerous tumour once for good.”

Gholamali Jafarzadeh, a former conservative member of parliament, said Zarif “is not a good statesman and should not run for president” while “reformists should know that their choices have no chance to be allowed to run”. 

This month, state TV abruptly stopped broadcasting the series that was less than halfway through its 30-episode run. Local media said broadcasts would resume when the presidential race was over. Iran’s centrist president Hassan Rouhani, whose signature achievement is the nuclear deal — alluded to the show on Wednesday and said “people’s money” should not be spent on “fabrication of the truth” and “distortion of facts”.

After three years of sanctions, many voters are disillusioned by the infighting and the prospect of real change, whatever the outcome of the election. “Whether Zarif or a figure more senior than him runs or not, I’m not going to vote,” said Hamid, a 40-year-old engineer. “Let the Guards win the election as they are the ones who are running the country anyway. Why shall I make a fool of myself?” 



Source link

Continue Reading

Analysis

Rising inflation complicates Brazil’s Covid-19 crisis

Published

on

By


After seven months in lockdown, Michele Marques received some unwelcome news when she returned to work: while she was away the prices of almost all the products she uses as a hairdresser had soared.

“A box of gloves rose 200 per cent. Colouring products increased at least 100 per cent,” said the 37-year-old from São Paulo, underlining how costs were rising while her revenue had collapsed. “I had to raise the price of my services, too.”

It is a dynamic that is playing out across Brazil, adding an extra layer of complexity to the country’s coronavirus crisis, which has already claimed the lives of almost 350,000 individuals and pushed hospital services to the brink.

With much of Latin America’s largest economy being shuttered, inflation is surging to its highest level in years, fuelling a silent scourge of hunger among poorer citizens that has run in parallel to the Covid-19 pandemic.

“The high price of staple foods — rice and beans, for example — has led to the disappearance of these items from the table of millions of Brazilians,” said Ana Maria Segall, a researcher at the Brazilian Research Network on Food and Nutritional Sovereignty and Security. In the 12 months to the end of March, the price of rice increased 64 per cent and black beans 51 per cent.

“In Brazil currently food inflation has penalised the very poorest, preventing them from having adequate access to food and in many situations leading to hunger,” she said, adding that rising unemployment and the curtailment of social programmes were also contributing factors.

Volunteers hand out food in São Paulo © Alexandre Schneider/Getty Images

Less than half of Brazil’s population of 212m now has access to adequate food all the time, with 19m people, or 9 per cent of its inhabitants, facing hunger, according to a recent report by Segall’s group.

“I’m doing some odd jobs, but it’s not enough to keep us going,” said Jonathan, a 28-year-old who lost his job in the kitchen of a Chinese restaurant in São Paulo when the pandemic began. He said he now struggles to provide enough food for his three young children and pregnant wife.

On a 12-month basis, inflation in June is expected to surpass 8 per cent, far above earlier estimates. In the 12 months to March, food prices jumped 18.5 per cent, while the price of agricultural commodities in local currency surged 55 per cent and the cost of fuel increased almost 92 per cent.

Line chart of Percentage increase over past 12 months showing The price of rice in Brazil is soaring

The developments pose a fresh challenge to President Jair Bolsonaro, who is already under fire for his handling of the Covid-19 pandemic. Across Brazil’s biggest cities, graffiti has sprung up labelling the populist leader “Bolsocaro” — a portmanteau of his name and the Portuguese word for expensive.

The rising prices are also likely to provide useful ammunition to leftist former president Luiz Inácio Lula da Silva, who returned to the political fray last month and may challenge Bolsonaro in elections next year.

“Bolsonaro is to blame for the increase in food prices, he is to blame for everything. They have to remove this guy,” said Maria Izabel de Jesus, a retiree from São Paulo.

Armando Castelar, a researcher at the Brazilian Institute of Economics, said the government had underestimated inflation both in terms of the numbers and also “how much a concern it should be”.

He attributed the rising prices to the devaluation of the Brazilian currency, triggered in part by the stimulus packages passed by the US government — which helped to bolster the dollar and led to higher Treasury yields — and the brighter economic outlook outside Latin America.

“You have a situation where commodity prices are going up because the global economy is going to grow a lot this year. With the growth in the US, interest rates are going up and the dollar is strengthening. This puts a lot of pressure on the exchange rate in Brazil and emerging markets in general,” he said.

As the spectre of inflation loomed last month, the Brazilian central bank raised its key interest rate by 75 basis points, higher than the half-percentage point many economists had expected. A further rate rise is expected next month.

“The central bank acted correctly, but it cannot stop there. It is important not to be too lenient in dealing with this,” said Castelar.

Silvia Matos, a co-ordinator at the Brazilian Economy Institute, also pointed to Brazil’s weakening currency as a contributing factor to inflation. But she said the slide in the real was triggered by investor concerns over Brazil’s deteriorating public finances.

Following the creation of two separate stimulus packages to mitigate the impact of Covid-19, government debt has risen to about 90 per cent of gross domestic product, a high level for an emerging market economy.

The rollout of the second of these packages began this month, with 45m Brazilians set to receive $50 a month for four months.

Critics said, however, these stipends were not nearly enough to keep people both fed and at home in lockdown.

“It is essential that the emergency aid is of a greater value, so that people do not leave the house but no one also stays at home starving,” said Marcelo Freixo, a federal lawmaker with the leftwing PSOL party.

“We need to reduce the circulation of the disease. Brazil is already experiencing 4,000 deaths per day. We will reach 500,000 total deaths by the middle of the year.”

Matos says that inflation had hit poorer citizens much harder than middle-class and rich Brazilians because a larger portion of their income was dedicated to food, the price of which has increased substantially.

“The only thing that could help right now is to get out of this pandemic,” she said.

Coronavirus business update

How is coronavirus taking its toll on markets, business, and our everyday lives and workplaces? Stay briefed with our coronavirus newsletter.

Sign up here



Source link

Continue Reading

Trending