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Argentine feminists pin hopes on Peronist duo to pass abortion bill

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Argentina’s feminists suffered a setback in 2018 when a plan to decriminalise abortion was narrowly defeated in the Senate. Now they hope to secure support for a similar bill this week in the more conservative upper house after gaining a crucial ally: Peronist vice-president — and Senate chair — Cristina Fernández de Kirchner.

Ms Fernández de Kirchner had opposed legalisation of abortion during her own presidency. But in 2018, under the centre-right administration of Mauricio Macri, she said she had changed her mind after seeing “the thousands and thousands of girls rallying [in] the streets.” On December 29, the ruling duo she now forms with President Alberto Fernández will try to get the abortion right bill past the Senate hurdle.

If they succeed, Argentina would make history as the most populous country in Latin America to adopt such nationwide legislation. In Brazil, abortion is a crime, albeit tolerated if the pregnancy is the result of a rape, if it puts the mother’s life at risk or if the foetus has severe brain malformation. In Mexico, two states have made it legal in the first trimester. Women in El Salvador can spend up to 40 years in jail under charges of murders for terminating a pregnancy or suffering a miscarriage.

A life-size picture of Cristina Fernández de Kirchner during a demonstration © Juan Mabromata/AFP/Getty Images

“This is all part of a larger process that includes women’s right to vote, shared custody of children, reproductive health, the rights of sexual minorities, gender quotas and more,” said Vilma Ibarra, Argentina’s secretary in charge of the bill and adviser to Mr Fernández in legislative matters. “These demands came with a strong impulse from civil society but needed a government behind them to make them a reality.”

Two weeks ago members of Argentina’s Chamber of Deputies passed the bill, which would allow the termination of pregnancies in the first 14 weeks, by 131 votes to 117 — a wider margin than the 129-125 in 2018. But even with Ms Fernández de Kirchner exerting more influence as head of the Senate, it is not clear whether the legislation will win enough raised hands to reverse the 37-31 defeat of 2018.

The Peronist government has sought to convince its more conservative senators to switch position on the issue, or at least abstain. The opposition, meanwhile, is having second thoughts about allowing pro-choice activists within their ranks to give the government a political victory. Estimates suggest a tie, with the possibility of a tiebreaking vote falling on Ms Fernández de Kirchner.

Activists paint slogans on the pavement in Buenos Aires © Victor R. Caivano/AP

The law would cap decades-long feminist activism in a country where Catholic traditions remain entrenched. A milestone in this campaign was the creation of the National Campaign for the Right to Legal, Safe and Free Abortion in 2005, that united scattered activist groups.

“We knew we needed to get society to decriminalise abortion first, that we needed to create a broad social consensus,” Celeste Mac Dougall, one of the group’s key members, told the Financial Times. “It was a lot of invisible work that changed the way in which people thought about the issue.”

Activists such as Ms Mac Dougall built networks of health professionals supporting women’s choice over abortion; they organised street rallies and cultural events, and campaigned for the liberation of women sentenced to jail for terminating pregnancies. They also lobbied to include sexual education content at school.

Cristina Fernández de Kirchner she had changed her mind about the legislation after seeing ‘the thousands and thousands of girls rallying [in] the streets’ © Alejo Manuel Avila/Le Pictorium/dpa

Support for the right to abort “whenever a woman decides to” doubled between 2008 and 2019, from 14 to 27 per cent of the population, according to the National Survey on Beliefs and Religious Attitudes, the largest of such kind in Argentina. Meanwhile, supporters of full prohibition remained little changed at 19 per cent.

Religion is an important factor in the debate: opponents to abortion rights can be found among Catholics — a majority in the country — and evangelicals, a growing and active minority. But one in five Argentines say they are non-believers and while opposition to abortion tends to win when pollsters ask binary yes or no questions, a majority say they would back legalisation in some cases.

In 2018, feminist protests pushed Mr Macri to give his green light to introduce legislation, but he said he personally opposed it. Evangelical and Catholic organisations mobilised and with the help of senators from the more conservative Northern and Western provinces, the bill was knocked down.

The debate had political consequences for Mr Macri. The right splintered, with Juan José Gómez Centurión even launching a rival presidential bid in 2019 after years working with Mr Macri. His vice-presidential candidate Cynthia Hotton was a leading anti-abortion campaigner.

Currently touring the country to stop the bill, Ms Hotton insisted in an interview with the FT that Argentina’s population was mostly Christian and anti-abortion. “Whatever the outcome of the vote, it will not end up paying dividends for the government,” she warned.

Additional reporting by Jude Webber in Mexico and Michael Pooler in Sao Paulo



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Emerging Markets

South Korea looks to fintech as household debt balloons to $1.6tn

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South Korea Economy updates

After her family business of ferrying drunk people home was hit by closures of bars due to Covid-19 curfews and social distancing, Lee Young-mi* found herself juggling personal debts of about Won30m ($26,000).

The 56-year-old resident of Suncheon in South Korea was already struggling to pay off or refinance four credit cards, but now faces the prospect of those debts rapidly multiplying after her husband was diagnosed with cancer.

“We’ve had little income for more than a year as not many people are out drinking until late into the night,” said Lee. “Now my husband won’t be able to work at all for the next three months after his surgery.”

Lee’s story is playing out across Asia’s fourth-largest economy as self-employed workers, who make up nearly a third of the labour force, have seen their incomes reduced sharply due to coronavirus restrictions. Now, after struggling for years to keep a lid on household debts that hit a record Won1,765tn ($1.6tn) in March, Seoul is looking to fintech companies and peer-to-peer lenders for answers. 

Chart showing increase in South Korea's household debt

Among them is PeopleFund, which touts tech-based investment products backed by machine learning that allow borrowers to refinance their higher-interest loans from banks and credit card companies.

The company has loaned at least $1bn to more than 7,500 customers since it was established in 2015. Its products allow borrowers to switch their debts to fixed-rate, amortised loans at annual interest rates of about 11 per cent, a change from the riskier floating rate, interest-only loans common in South Korea. 

PeopleFund has received about Won96.7bn in financing from brokerage CLSA, and along with Lendit and 8Percent is one of the first among the country’s 250 shadow banks to win a peer-to-peer lending licence. 

“The country’s most serious household debt problem is with unsecured non-bank loans, whose pricing has been too high. We can offer more affordable loans to ordinary people unable to receive bank loans,” Joey Kim, chief executive of PeopleFund, told the Financial Times.

The proliferation of digital lenders and fintechs in South Korea, where higher-risk borrowers are often cut off from bank financing, has been encouraged by the country’s government.

“We hope that P2P lenders will help resolve the dichotomy in the credit market by increasing the access of low-income people to mid-interest loans,” said an official at the Financial Supervisory Service.

South Korea’s household debt situation has become more pressing since the onset of the pandemic, with increases in borrowing for mortgages, to cover stagnating wages and to invest in the booming stock market. South Korean households are among the world’s most heavily indebted, with the average debt equal to 171.5 per cent of annual income.

South Korea’s household debt-to-GDP ratio stood at 103.8 per cent at the end of last year, compared with an average 62.1 per cent of 43 countries surveyed by the Bank for International Settlements.

Much of the new debt has been risky. Unsecured household loans from non-bank financial institutions were Won116.9tn as of March, up 33 per cent from four years ago, according to the Bank of Korea, much of it high interest loans taken out by poorer borrowers.

Getting on top of the problem has taken on national importance. In a rare warning in June, the central bank said the combination of high asset prices and excessive borrowing risked triggering a sell-off in markets and a rapid debt deleveraging.

“If financial imbalances increase further, this could dent our mid-to-long-term economic growth prospects,” BoK governor Lee Ju-yeol said in July.

The country’s economic planners, however, are struggling to contain debt-fuelled asset bubbles without undermining South Korea’s fragile economic recovery.

The government has attempted to address the danger by tightening lending rules. Regulators in July lowered the country’s maximum legal interest rate that private lenders can charge their customers from 24 to 20 per cent.

Economists caution that rising debt levels increase South Korea’s vulnerability to an economic shock. 

They also warn that the asset quality of financial institutions could be hit by a jump in distressed loans when the BoK rolls back monetary easing, expected in the fourth quarter.

“Monetary tightening is needed to curb asset bubbles but this will increase the household debt burden, holding back consumption further,” said Park Chong-hoon, head of research at Standard Chartered in Seoul. “The government is facing a dilemma.”

For Lee Young-mi, however, the 11 per cent rate offered by the PeopleFund is still too high. “I am not sure how to pay back the debt.”

*The name has been changed



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European and Chinese stocks rise after calming words from Beijing

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Chinese equities updates

European shares chased gains in China after calls from Beijing for greater co-operation with Washington helped sooth jitters over a regulatory crackdown in the world’s biggest emerging market.

Europe’s Stoxx 600 index rose 0.7 per cent on Monday to hit new all-time highs, while the UK’s FTSE 100 rose 1 per cent led by economically sensitive stocks including banks and energy groups. London-listed lender HSBC gained 1 per cent after it reported second-quarter figures that easily beat analysts’ expectations.

The gains came after the China Securities Regulatory Commission, Beijing’s market regulator, called on Sunday for closer co-operation with Washington, stressing the country’s efforts to improve transparency and predictability after a crackdown on tutoring groups obliterated the market value of the $100bn sector’s biggest companies.

Chinese listings in the US have become a geopolitical flashpoint as Beijing has sought to exert greater control over the country’s powerful tech sector. The US Securities and Exchange Commission said on Friday that Chinese groups that sought to sell shares in America would be subject to stricter disclosures.

Shares in China rebounded after their worst month in almost three years, with China’s CSI 300 benchmark of Shanghai- and Shenzhen-listed blue-chips rose 2.6 per cent on Monday, while Hong Kong’s Hang Seng index added 1.1 per cent. The city’s Hang Seng Tech index, which tracks big internet groups including Tencent and Alibaba, reversed early losses to rise 1 per cent. Futures tracking Wall Street’s benchmark S&P 500 index climbed 0.6 per cent.

Last month, China’s cyber-security regulator announced plans to review all foreign listings by companies with data on more than 1m users after top leaders in Beijing called for an overhaul of how the country regulates initial public offerings in the US. The crackdown came just days after the $4.4bn listing of ride-hailing group Didi Chuxing.

The intensifying scrutiny of how Chinese groups access capital markets has pummelled stocks, delivering the worst month for China tech groups listed in the US since the global financial crisis. The Hang Seng Tech index fell 17 per cent last month.

“While we do not consider it prudent to completely avoid investments in China, further volatility can be expected until the first quarter of 2022, by which time we believe most regulatory changes may already be in place,” analysts at Credit Suisse wrote in a note on Monday.

Meanwhile, data released by China at the weekend showed that factory activity grew at the slowest pace in 15 months in July as demand contracted for the first time in more than a year.

Government bonds were steady with the yield on the benchmark German 10-year Bund, which moves inversely to its price, gaining 0.01 percentage points to minus 0.45. The equivalent US 10-year yield was steady at 1.234 per cent.

Bond yields have been falling in recent weeks, despite higher than expected inflation readings in the US and indications from the US federal Reserve last week that it was moving a step closer to the day when it would start tapering its $120bn in monthly asset purchases.

The euro rose 0.1 per cent against the dollar to $1.1885, while the pound gained 0.1 per cent to purchase $1.3924. Prices for global oil benchmark Brent crude fell 1 per cent to $74.66.

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Turkey battles to quell wildfires as residents and tourists flee

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Turkey updates

Turkey has contained more than 100 wildfires after a series of blazes near its Mediterranean coastline killed six people and forced thousands of residents and foreign tourists to flee holiday resorts, the government said on Sunday.

Winds gusting at 50km per hour, low humidity and temperatures hovering near 40C have made controlling the fires difficult, Bekir Pakdemirli, the forestry minister, said on Twitter and in comments reported in state-run media.

The fires began on July 28, and the simultaneous start of so many conflagrations raised suspicions they may have been deliberately set, Pakdemirli said, although he did not offer evidence of arson.

About 100 Russian nationals were evacuated from the Bodrum peninsula in western Turkey on Saturday and moved to hotels elsewhere, the Russian consulate in the city of Antalya said in a statement, according Sputnik, a Russian state media outlet. Local tourists were also among the evacuees, with some forced to leave by sea as the blaze cut off other escape routes.

Flights from Russia, Turkey’s biggest source of tourists, only resumed in late June after Moscow suspended charter trips amid a record outbreak of Covid-19 cases in Turkey in the spring. Coronavirus-related travel restrictions to Turkey have hammered its tourism sector, which directly and indirectly accounts for about 13 per cent of gross domestic product.

Villagers water trees to stop the wildfires that continue to rage in the forests in Manavgat, Antalya, Turkey © AP

The forestry ministry website showed at least 15 active fires on Sunday. Villagers and forestry workers were among the six people who died, according to Turkish media. Mehmet Oktay, mayor of the resort town of Marmaris, said one volunteer firefighter had died and another 100 people had been injured in a spate of fires that have scorched more than 10,000 hectares near the town.

A half-dozen fires continued to sear areas mostly inaccessible by road, and the number of blazes across Turkey meant not enough firefighting planes were available, he said. “It’s heartbreaking, and I am fighting back tears to concentrate on the emergency at hand. It will take more than a decade to restore this land,” he said.

Thousands of farm animals and untold numbers of wild animals also perished in the fires, which one meteorologist estimated reached 200C.

Wildfires are an annual occurrence in south-west Turkey’s pine forests, and one expert told CNN Turk television that 95 per cent are deliberately or accidentally sparked by people.

Yet the scale of the current conflagration is remarkable, and some are blaming climate change for the disaster. Turkey recorded its highest ever temperature in a south-eastern town last month, and much of the country has been gripped by drought this year, while deadly floods struck north-east Turkey last month.

Several other Mediterranean countries are battling blazes this summer, including Cyprus, Greece, Lebanon and Italy, and scientists have said the extreme weather events across the globe this summer may be the result of global warming.



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