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tv   Counting the Cost 2019 Ep 13  Al Jazeera  April 2, 2019 8:32am-9:01am +03

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monthly payments due was killed six months ago after entering the south because of the consulate in istanbul turkish president roger out of the un's ruling party's says it will challenge the results of local elections in two major cities with nearly all votes counted the opposition jep a appears to have won in istanbul and ankara many see the election as a referendum on are the ones government. reuters is reporting that a group of former u.s. intelligence agents helped the united arab emirates spy on prominent arab media figures targets for the hakas included the chairman of al-jazeera as well as the host of a b.b.c. arabic television show those are your headlines the news continues announcer after counting the costs they were lost.
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hello i'm adrian finnegan this is counting the cost on al-jazeera your weekly look at the world of business and economics this week indonesia's on the road to becoming one of the world's biggest economies we find out what's holding it back and how that could damage the president's hopes for reelection. also this week as the world's biggest democracy gets ready to vote who's financing political parties there. and mexico's leftist president swept to power on a promise to help the country's poorest but now he's axing social programs we'll look at why. indonesia's economy isn't growing as fast as the president promised when he was elected five years ago joko widodo is spending huge
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sums to try to get reelected for a second term he's giving regional governments billions and giving handouts to the country's poorest while indonesia is well on its way to becoming a two trillion dollar economy in the next five years a population of more than two hundred fifty million people strong across more than seventeen thousand islands is being held back by among other things poor infrastructure while economic growth on the main island of java. landed at five point seven percent last year bali than nusa tenggara group just two point seven percent unemployment in jakarta is running at around five point three percent but it's more than eight percent in the neighboring state of west java the world bank estimates that indonesia has an infrastructure gap of one point five trillion dollars compared to other emerging markets president joko widodo is halfway through a ten year three hundred twenty seven billion dollar program to construct new
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airports highways and ports congestion in the capital jakarta costs the country billions in lost revenue al-jazeera florence louis reports now on how the city's newly opened mass rapid transport system is proving to be highly popular. jakarta's long awaited mass rapid train system is finally here was and it's proving a hit more than ten million people work and live in the indonesian capital and the m r t goes a long way in easing the city's notorious traffic congestion. this is a mess if you are in the news your finally has a name marty just like other country that has been having it for years it is also i am very proud moment i usually take an old bus to office but no i am provided with these very comfortable public transportation i hope people who take car still office will use this facility. there's only one line at the moment running from south jakarta to the city center covering
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a distance of sixteen kilometers the plan is to expand this to eventually cover one hundred twelve kilometers with more than sixty stations by twenty twenty five since coming to power in two thousand and fourteen president joe kudo's administration has prioritized infrastructure development like this one as one of the ways to unlock the country's economic potential other projects include the construction of ports roads power plants and oil refineries since the country is moving from the commodity base to the manufacturing base producing more high value at products it needs quite calm but the. system exporting goods from any genre or just sending them around the country is expensive logistics costs make up around twenty four percent of g.d.p. much higher than the regional average but the infrastructure projects also come at
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a price they're estimated to cost four hundred billion dollars over five years adding to government debt levels but the government says that the debt is manageable by law we are allowed to go to sixty percent but remember the main percent. g.d.p. number all the loan that we got to be looking at the productive projects or they can be from the project. so i don't see that much problem but the economic growth that was supposed to happen on the back of infrastructure development hasn't yet materialized g.d.p. growth has hovered around five percent in the last five years while that can be considered a pretty solid number for some countries it's below the government's target of seven per cent and it's not enough for indonesia's development needs and ambition. condiments generally agree indonesia has to keep spending and not just on building roads railways and other facilities but we also need the soft infrastructure what i
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mean about this stuff infrastructure is for instance capital human capital development which i think. one of the up by at the of the government education in health care for instance have been given bigger allocations in the state budget physical infrastructure but jakarta's newly opened m.r.i. is only part of what indonesia needs to boost its economy. joining us now from london. is emerging markets columnist at capital economics good to have you with us gareth. but forecast seven percent growth at the time of his election the economy has been delivering what around five percent that's not too bad when you look around but what's holding the economy back. i think there's a number of factors that certainly commodity prices haven't helped being quite subdued for most of gerry's term i think also more fundamentally it's just been a failure to revitalize the manufacturing sector which when he set out five years
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ago was one of his key aims now there's a number of reasons why he's failed to do that he has admitted he's done some kind of useful tinkering around the edges we've made it more easy for foreign manufacturers to set up in he's pushed ahead with some improvements to the infrastructure but the one thing that he's really failed to do is to press ahead and make any progress with them with labor market reform so in indonesia it's incredibly expensive to hire and fire workers and what that means is that people are reluctant to share set up manufacturing facilities in indonesia when they could do so much more cheaply in neighboring say vietnam for example and i think that's been the key reason why growth is to fail to come really anywhere near the government's target so what needs to be done what does he need to do i mean people are arguing that the kind of infrastructure investment that we're seeing it into these here at the moment isn't creating the right kind of work and i think he's made some reasonable progress in infrastructure spending so over the past five years he's increased an annual average about twenty percent which is pretty decent
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and given the constraints with a fiscal position and so on it's unlikely he could have done much more but i think as i mentioned the key thing that he really needs to do is press ahead with these labor market reforms and i think without that then that indonesia is really going to struggle to attract the kind of manufacturing sector that it needs to really kind of raise growth above the five percent that we've got but that we seem to be stuck at the moment now this is something that we were talking about growth on last week's program china became indonesia's second biggest source of foreign direct investment in twenty seventeen jakarta says it expects chinese inflows will only continue to swell should. be concerned about failing to keep up with repayments to china. i think it's a very difficult position that it's a problem facing not just indonesia but other countries in asia as well it's that china has clearly got a lot of money to spend as part of its belt and rodentia tive and given the
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infrastructure deficit that indonesia has at the moment there's a clear role for chinese investment to pay i think the concern that indonesia has but also places such as pakistan and malaysia where there's been quite a big push back on chinese investment recently is that that these investments come with say that you hear stories about interest rates and double digits in his stories that china wants to control the asset even after it's been built and i think that's the reason why indonesia is going to tread very carefully with this over the next few years and why you're already seeing some pushback at the election over the prospect of a big increase in chinese investment like many developing nations you look at the statistics and wonder what on earth the problem is but i mean you have this massive what sixty percent informal economy what he's done to be done to make that more inclusive. i think the key point that i've mentioned is that if you look at the most successful asian economies since the second world war countries such as taiwan
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hong kong korea what they all had in common was a very competitive export orientated manufacturing sector now this is something that the indonesians really struggle to create and generate and i think if it's if it's going to meet its potential and raise growth to the seven percent or so that you kerry's been targeting it really needs to do something about that now he has made some useful progress on infrastructure so there are improvements in place there but i think until you see the big changes in the labor market also land reform is another area that hasn't really to show until you see changes that and i think indonesia is really going to struggle for it so whoever wins the election what should the main priorities be as they take office and looking ahead to the next five years i think if you look at the economic proposals of both candidates neither of them really have the economic policies if you look at pro bono of of all he's got a very kind of population nationalist agenda he wants to cut taxes which may
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provide a short economy but would also raise borrowing and probably borrowing costs as well he's also been very circumspect about chinese investment and also very nationalistic about kind of promoting a more a more self-sufficient economy and i think investors are very wary of a prayer when but he's still a long way behind in the opinion polls that doesn't look very likely on jacoby i think you get more of the same so you get kind of tinkering around the edges you get some further improvements to the business environment you probably get more spending on infrastructure but he doesn't look as if he's going to be this kind of second transformative figure he's not going to push ahead with these big changes to infrastructure i mean changes to the labor market the indonesia needs now a lot of the put the problem with that with indonesia the problem with the policy mindset is if you think back kind of twenty years or so where indonesia was hit very. by the asian financial crisis. is pretty sad deep distrust of foreign markets and also open markets and so they're likely to be very cautious in their approach
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to policy making really good story gareth many thanks indeed for being with us ok thank you now around one in five of the philippines one hundred six million people live in extreme poverty getting by on less than two dollars a day many including children were blown out as a street vendors or laborers to make enough to feed themselves hunger occurs most in the agriculture and fishing sectors where seventy percent of workers a pool of zeroes gentle and dog and meet some of those struggling to earn a living in the capital manila. when war broke out in malawi in the southern philippines almost two years ago. and her children fled the violence they made their way here to downtown manila since then her eldest son up to her man has been providing for the family but life in manila is also violence and like many others they are harassed because they are homeless and they're classified as illegal
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vendors later it is hard when they see them hauled away in tire which is even more difficult is when the children are sick but what can i do. experts say iran to have a filipino children go to bed hungry and the young are most at risk of money meant more than twenty percent of them are under with the philippines ranks ninth in the world among countries with the highest number of children with stunted growth. how occurs the most in agriculture and fishing sectors where more than seventy percent of workers are impoverished displacements brought about by natural disasters and continuing on conflict contributes to communities food insecurity the autonomy's a region in muslim mindanao has one of the highest tendency for on their way children and it may be attributed to the history of conflict in the region. aid groups have been feeding children in many public schools for years and the
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government to promise to expand that program nationwide and include kindergartens and elementary schools. in hopes to eradicate hunger and reduced on to the growth in children by twenty thirty on their it's sustainable development goal it's not being highlighted because. this is very abstract we only notice one nutrition if the child is skin and bones sometimes we call it behave that hunger even recall it like. that starvation of the soul because when we talk about malnutrition that it doesn't only affect the body but it affects the whole being of the child shane is twelve years old and for four years she's been helping her mother feed her other seven siblings they sell flowers outside churches and together make less than six u.s. dollars a day shane sleeps here on the pavement with her mother she says she dreams should
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become a doctor one day but for now she sells her flowers with hunger her constant companion . still to come on counting the cost community farms are springing up in venezuela as u.s. sanctions kick in. but first india's prime minister narendra modi declared the country a space power after the successful test of an empty satellite missile but opposition leaders complained that the prime minister used the test to score political points the election commission said if you'll pardon the pun that it would launch a probe of its own this one into the prime minister's announcement which comes ahead of elections more than nine hundred million indians will go to the polls in the world's biggest democratic process beginning april eleventh political parties are expected to spend seven billion dollars over the election cycle that ends on may twenty third but there are concerns new campaign laws introduced by modi are
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making it more difficult to find out who's financing the parties and their candidates anyone can walk into a bank and buy electoral bombs anonymously for the party of their choice. joining us now from new delhi is charlie a professor and dean at the gentle school of international affairs good to have you with us professor the government has defended these new campaign financing rules why is that if you know before the finance. it is what passed and you once released it was completely in the dark and. so you know anybody need donations and it was not a co-author for a lot of it was after books and after a car saw the dark skinned means that you know by introducing these barns and others it seems a lot of people have been in the back in early june or to be you know available for
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school to me and we can actually tell who was receiving how much and before the boss that we couldn't even guess who was this. why i was assuming what amount of money and from whom so of course the arab media that is still in the last which means the only ones not needing well at least you know who is it is see it in the boston legal are completely black marks so the next it wasn't going to be any far but i believe from there you are at the last show your efforts are if it does seem like it is also lost on the situation by screwing you think of the ruling party and he's of working against the interests of the opposition and therefore there's a lot of concern of all of it will do the balance of the e.o.p. what the donors expect for their money in india can elections in the country be bought and our politicians perhaps more concerned about their sponsors than their constituents. well you know capitalism is
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a problem with most democracies there are influential guy. who are trying to curry favor with the government and to get policies enacted in their favor i'm not so sure the kind of situation means that a lot of some big businesses will want to do a lot of us because one of the interesting aspects of this law is that even foreign companies not just in newcastle a spotted one with the new branches can also need parties i'm honestly so odd to me that you know it's leveling the playing field but i want to get i mean this is about loan on cash water ok people pay to play kind of our game but only if it was obvious changed the particular betting on wins so it's about exchanging all the little things on the last call that solutions do not concessions but investments and also the possibly could be applied to them it's back to the second all are you
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going in the company or the market or see at the end of the date and elections cannot be bought off fixed i mean that i think is outlandish because you really for example understand why the party gets most of the funding that the gotta be truly you not only the election of the party that are already left alone are also on because they're all using stubbornness regarding identity plays and you know i can see that side of what can be really what's not to be the leader of caste and religion out of this ok so who are the big donors and what about foreign political donors the concern all over the world about foreign political funding what about in india well these are those of the most interesting aspects of it i mean it's all in the new business houses the big family owned business houses a lot of bodies and the time. you know. it's and so are we in martin
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county fighting out in the open secret that we're morrow not only the law of indian subsidies of foreign companies and i mean it's an interesting because there are a lot over the last. quarter. you know we and only one of the most attractive destinations for our investment saw our results for our own law international multinational corporations now looking for market access and better jobs for our region returning india and dealing with larry king who probably made a mark in this election unlike in the last man foreign legion and so we started a list this election law our interests are all going to look like foreign policy layers professor really good to talk to your counting the cost many thanks and they for being with us now getting enough food just to survive continues to be a big problem in venezuela the oil rich nation produces only twenty percent of its
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own food and with the latest u.s. oil sanctions now beginning to bite some hope the community farms will get them through tough times now to zero stories about reports from caracas. difficulties are everywhere in venezuela these days the economy crisis has million struggling but people in illinois say they're ready to fight back by producing their own food they have turned this small farming back us into an agricole logical project where they can roll fruits vegetables and even fish. on a limb at that he says the situation will likely deteriorate in the country when the new us sanctions take effect. that there is an economic war against us and we try to supply our families in the hospital in the area with displays we can feed seventy people every day. there are three families living here and with what they
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produce they're helping a local hospital people here say that they need to be ready for what's coming. on the people say that in this place almost everything to survive. on a linux is there over twenty thousand projects like this one in venezuela but that they need more government support. we need to teach people that they need to learn how to produce their own food this needs to be public policy we need to tell the government the budget that is invested in food production must be the same one vested in the armed forces. venezuela imports most of the food it consumes the us has impose new sanctions that will make it tougher for the government to sell oil and get much needed cash. on the part of america and we send the says there are real sanctions begin now. the sentence we saw by the united states in the past were
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affecting individuals but they were not against the state against p.d.s.a. it was against people related to the government the sanctions were light we're going to see now is an embargo and this is going to be tough demolishing. the m.d.s. has been breeding rabbits in the farm he says people see them as pets but they could be a crucial source of protein. there also needs to be self-criticism the government doesn't know how to plan how to get organized the enormous corruption because the state continues to operate like all agog what we want to eradicate is still and it's up to our social movements to make change in this production as a way to protest. most analysts say the situation will deteriorate in the next few months becoming self-sufficient is the only way many venezuelans will have to deal with their every day life mexico's leftist president under as manuel lopez obrador swept to power promising more help for the country's poorest now though soup
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kitchens that feed the hungry a shutting down as he takes the axe to government social programs john holdren explains why from mexico city. mix can community kitchens where some of the country's most vulnerable you get a cheap meal for the next several years to quote lou pape their life saver in feeding her family of six with his gaze wally i know it's really helped with our finances even with the gas for the stove and now i go to work rather than just worrying about cooking and until now we've never gotten. that many of mitts because almost six thousand federal food kitchens have already shut as part of budget cuts to social services it's not just the soup kitchens closing their doors funds have also been slashed for child daycare centers and the government plan to shut down shelters for women fleeing domestic violence and give the money instead until
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a backlash made it change its mind and this is all come from a president who's long championed the poor and vulnerable at school some surprise and indignation. he says the measures necessary to stamp out corruption said today mean it's finished around thirty years of these programs which were just used to win elections and get media attention. programs which encourage corruption using the name of the humble the poor to do it was that's all finished the c.f.l. on the base something in the government social ministry was recently implicated in a monumental corruption scandal but civil society groups say the wholesale scrapping of programs for the pool is not the answer and some worry there are other motivations well my concern is that is really an attempt to to concentrate power to have all the social programs in their hands to be a political platform and in that says if you really committed to transparency and
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avoid corruption will be transparency in the sense of the of an easy chair of the of the new of the new programs that you're putting together none of that so far in place the new programs he's talking about include expanded help for students the old and those with disabilities the president it seems those will social programs just ones do so his own design. and that's for this week if you'd like to comment on anything that you've seen get in touch with us you can tweet me a finnigan on twitter use the hashtag a j c t c wade through all the line counts in the cost of al jazeera dot net email address as always there's plenty more few online. column slash c.t.c. that takes you straight to our page and there you'll find individual reports links even entire episodes for you to catch up on but that's it for this edition of counting the cost i'm adrian finighan for the whole team here in doha thanks for being with us the news on al-jazeera is next.
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my main to every weekly news cycle going to series of breaking stories and then of course there's donald trump told through the eyes of the world's channelise that's right out of a hamas group that calls for the annihilation of israel that is not what that phrase means at all he joined the listening post as we turned the cameras on the media focused on how they were caught on the story step matter the most embed is a free palestine a listening post on al-jazeera. a city defined by military occupation there's never been an arab state here at the capital of jerusalem everyone is welcome but the depôt structure that maintains because only a project that's what we refuse it was one of the founders of the settlement this and the story of jerusalem through the eyes of its own people segregation occupation discrimination injustice this is apartheid in the twenty first century
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jerusalem our rock and a hard place on al-jazeera. i'm sammy's a down in dar with a look at the headlines here now to syria algeria is eighty two year old president has agreed to step down by the end of the month bowing to weeks of protests and pressure but it's unclear if the move by of those these beautifully for will satisfy protesters who've been demonstrating for six weeks victoria gate and bureau forts after being abandoned by algerian military leaders it was perhaps only a matter of time before president abdelaziz bouteflika was forced to name a date for his departure it came in the form of a statement read on state television confirming booted.


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