UK supermarket workers oppose new wage-cutting contract at Walmart subsidiary Asda

Barry Mason

Workers are rallying in Leeds today to oppose the imposition of a new work contract that will negatively impact 60,000 employees of the UK supermarket giant Asda, a subsidiary of US-based global retailer Walmart.

The merging of five current contracts into one “flexible” contract, known as Contract 6, will mean workers losing paid breaks. Working bank holidays and weekends would be compulsory and they would have to agree to work more flexible hours. This would cut across the needs of many working parents to have guaranteed work hours for them to be able to perform care duties for their children or, in other cases, adult relatives. The changes would come in return for a tiny rise in basic pay from £8.84 an hour to £9 an hour.

Asda employs over 100,000 workers, including 12,000 workers just in its delivery warehouses—servicing both stores and the growing home delivery sector.

In a consultative ballot of GMB trade union members, 93 percent rejected the terms of the contract. In response the GMB has organised today’s rally, to be followed by a march passing Asda’s nearby headquarters. The GMB is the only union recognised by Asda.

Transferring to the new contract was previously voluntary but is now compulsory. The Daily Mirror on August 5 quoted from a question and answer leaflet to be given to Asda workers not wanting to move onto the new contract. It states, “You will have a number of 121s [one-to-one meetings] with your manager. As part of the 121 process, we hope you agree to move to the new contract. If you still don’t want to sign up to the contract after those 121s, at that stage we would issue notice to terminate your employment on your existing terms and conditions.”

To make clear the threat, the leaflet states, “We will offer to re-engage you on the new terms. If you choose not to accept the new terms you would leave the business.”

Asda was bought by Walmart in 1999 for £6.7 billion and, along with Tesco, Sainsbury’s and Morrisons, is one of the big four supermarkets dominating the UK market. However, this leading position is being challenged by discounter supermarkets, Aldi and Lidl. In response, attacks on workers’ conditions are being ramped up across the big four. Along with rents, labour costs are a major factor in supermarkets’ overall costs.

In May last year, in return for raising basic pay to just £9.20, Sainsbury’s imposed a new contract, with a threat to sack any worker who did not sign up, including a loss of paid breaks, premium Sunday pay and bonuses. According to the Unite union, around 9,000 workers would lose up to £400 a year, with some losing thousands. An online article in the Grocer explained that among the “contractual changes being introduced are the removal of… paid overtime, alterations to productivity, flexibility and attendance standards, and streamlined and broader roles. These include moving from 22 specific roles to just five.”

In June and July, hundreds of workers at one of Sainsbury’s 23 distribution depots—Waltham Point in London—held two 24 hour strikes in opposition to changes in the firm’s attendance policy and plans to reduce sickness pay from 26 weeks to just two weeks.

A pay rise awarded to Tesco staff in June 2017 was tied to proposals to reduce the rate of pay for Sundays and bank holidays from time and a half to time and a quarter from July 2018. This year’s basic pay rise for Tesco store and warehouse workers was set at £9 and was offset by abolition of an annual cash bonus.

Although most Asda supermarket staff are low paid, senior executives are raking it in. The Walton family, which owns Walmart, has a combined net worth of $191 billion—an increase of $39 billion since last year—with their astronomical wealth rocketing up by $4 million every hour. In the same amount of time, one of their shop floor employees in the UK earns just £9 and one of their American employees $11. Tesco’s chief executive, Dave Lewis, was given a £1.6 million annual bonus this year, bringing his total annual earnings to £4.6 million.

Italy: Democrats, Five-Star Movement call for technocratic government

Marianne Arens

Last night, the Italian Senate decided that the parliamentary vote of no confidence that is expected to mark the end of the current government will take place on Tuesday, August 20, following a speech by Prime Minister Giuseppe Conte.

The 345 members of the Senate had been recalled from their traditional summer holidays because their party leaders were unable to agree on a course of action on Monday. The far-right Lega party had announced its lack of confidence in Conte on August 9, after its leader, Interior Minister and Deputy Prime Minister Matteo Salvini, formed a coalition government with Conte’s Five-Star Movement (M5S) over on August 7.

Salvini is aiming to hold new elections and to become the leader of a far-right government. His party received 34 percent of the votes in the recent European elections and has since recorded stronger polling results. He wants to form a coalition with the fascist Fratelli d’Italia (Brothers of Italy), with Silvio Berlusconi’s Forza Italia, or with both. On Tuesday, Salvini had talks with Fratelli d’Italia leader Giorgia Meloni and with Berlusconi.

However, the decision on the what steps to take next lies with President Sergio Mattarella of the opposition Democratic Party (PD). If the government falls next week, he has three options: to find a new majority in the existing Senate, call new elections or appoint a “technocratic” transitional government.

Currently, the strongest proponent of a technocratic government is former Prime Minister Matteo Renzi (PD), who vehemently opposes new elections. He has declared that an unelected government is needed to save Italy from an “extremist course,” reduce the size of parliament, and push through the next budget with European Union (EU) approval before new elections. He thus directly plays into the hands of Salvini, who could present himself Tuesday in the Senate as a “true democrat” wanting to “give the people the vote.”

Salvini’s previous coalition partner, the M5S, also rejects new elections, after party founder Beppe Grillo spoke out against it on his blog. The M5S also wants to approve the budget and reduce the size of the parliament before new elections are held. They would also lose about half their seats if a vote took place now.

On Tuesday evening, the M5S and PD together blocked a vote of confidence from taking place in the Senate as Salvini had demanded. Since then, speculation has continued in Rome as to whether the two parties, which have been public political enemies, will form a new ruling coalition. They could jointly secure a parliamentary majority supporting a technocratic government appointed by the president.

Salvini’s speech in the Senate was interrupted several times by loud denunciations from senators of the PD and its breakaway, LeU ( Liberi e Uguali). This parliamentary opposition to Salvini is from the right, however. It is not directed against Salvini’s fascist and anti-refugee policy, which was fully supported by the M5S, the new ally of the PD, for 14 months, but against his threats to ignore the EU’s limits on Italian budget deficits.

Argentina’s stock market crashes after Macri loses pre-election poll

Rafael Azul

Argentina’s “PASO” primary election, which is designed to select candidates for federal posts and weed out political parties that obtain less than 1.5 percent of the vote, took place on August 11.

The unexpected collapse of support for President Mauricio Macri and his Juntos for El Cambio coalition spurred a run on the Argentinian stock market, which plummeted 60 percent to close down nearly 40 percent, the second largest one-day market collapse in the world since 1950. The peso lost 23 percent of its value, reaching a low of 61 pesos per US dollar.

Above all, the market crash shows international finance capital’s concern that the vote reflects massive social opposition to austerity regimes. Spain’s El Paíscalls the collapse “Black Monday” and warned that the economy is “on the verge of collapse.” What is “even worse” than the crash, El País wrote, is the “fear over the long coming months of a vacuum of power … without a credible government.” The first round of the general election is October 27. The New York Times, meanwhile, makes references to Argentina’s 2001 default when the country confronted mass demonstrations and went through a handful of presidents in a matter of weeks.

In Sunday’s elections, four political coalitions qualified to run on October 27. The big winner was the Peronist and trade union-led Frente Para Todos (Front for All), with 47.4 percent of the total vote. Its presidential and vice-presidential candidates are Alberto Fernández and former President Cristina Kirchner. The ruling coalition won just 32.1 percent of the vote. Its candidates are Macri and Migue Ángel Pichetto (Peronist).

Third, with 8 percent, was former economics minister Roberto Lavagna (Peronist) of the Consenso Federal, an anti-Kirchner Peronist group.

The pseudo-left Frente de Izquierda Unidad (an electoral alliance consisting of Partido Obrero, Partido de los Trabajadores Socialistas, Izquierda Socialista and Movimiento Socialista de los Trabajadores) came in fourth with 3 percent. Another pseudo-left candidate, running independently of the FIT-U, Manuela Castañeira, of Nuevo MAS (Movement for Socialism) obtained 0.8 percent of the vote.

Opinion polls leading into Sunday’s vote predicted a toss-up election between Macri and the Peronists. The difference was overwhelming, with Macri’s supporters acknowledging his chances in the general election are close to zero. If Sunday’s vote holds up in October, the Peronists will not only win the presidency in the first round, but will also very likely control the lower house of Congress. The possibility of such an outcome is provoking consternation in financial and industrial sectors.

There are some indications that Wall Street and the Argentine bourgeoisie are ready to dump Macri, whose illegitimacy will make enforcing International Monetary Fund (IMF) cuts more difficult. Among the domestic capitalist class, some are now demanding that Macri abandon the race and throw his support to Roberto Lavagna, of the anti-Kirchner Peronist Alternativa Federal.

Lavagna, 77, was economics minister for President Eduardo Duhalde during the 2001 debt crisis; shortly thereafter he became economics minister once again, under President Néstor Kirchner, where he was charged with negotiating the IMF’s “rescue” package of social service cuts.

As the voting was taking place, a group called the “256 executives” (members of the country’s industrial business association) actively discussed the voting results through Nuestra Voz, a Whatsapp chat group. Included in the discussion was the the proposal that Macri drop out of the race and lend support to support Lavagna.

The following day, Juan Manuel Urtubey, Lavagna’s candidate for vice president, denied having received such indications from the big business association. At the same time, Urtubey called on Macri to listen to the 47 percent “that did say something” on Sunday, demanding that he abandon the “electoral model” and begin thinking about his next steps, given the seriousness of the election results, calling for a transition organized by the political and productive establishment to accomplish a “common goal.”

Concerns over the legitimacy of Macri’s rule goes beyond Argentina’s borders. The British Financial Times weighed in on Tuesday, accusing Macri of having lost touch with reality.

“With voters giving Mr. Fernandez a 15-point lead, the peso tumbled while the Merval—the local stock index—lost 48 per cent of its value in US dollar terms. Government dollar bonds lost about 25 per cent on average, with yields rising to about 35 per cent on short-term notes, while credit default swaps showed an implied default probability of 75 per cent.

“At a press conference, [Macri] vowed to fight back and blamed the market crash on voters. This presidential loss of touch with reality may have scared markets even more than the prospect of Cristina Fernández de Kirchner’s return...

Explosions at Russian military facilities leave eight dead

Andrea Peters

Seven workers killed in a nuclear military accident last Thursday in Russia’s far north were buried on Monday. Details of the events surrounding the men’s deaths are still largely unknown, with the Russian government providing few specifics about the explosion that took place at its naval facility near the town of Nyonoska on August 8.

According to Rosatom, the country’s nuclear energy corporation, the blast was set off by the ignition of some form of liquid propellant, which experts say is a component of cruise or ballistic missiles, during a failed test. After several days, officials acknowledged that the test took place on an offshore platform in the White Sea.

In addition to the seven dead, more than a dozen others were injured.

Defense ministry officials initially denied that the explosion discharged any radioactive materials into the atmosphere, flatly contradicting reports by the Civil Protection Department in nearby Severodinsk—home to nearly 190,000 people—of a sharp spike in background radiation. It took several days before the Kremlin acknowledged that there had been a nuclear accident.

Maritime officials have since banned shipping in the White Sea’s Dvina Bay for a month-long period. There are also reports that a military vessel designed to clean-up and store nuclear waste has sailed to the area. Online sources show images of emergency responders in hazardous materials suit working with victims and deploying to the area.

In Arkhangelsk, a city of 350,000 about 90 kilometers from the site of the accident, there has been a run on the pharmacies. Frightened residents are buying up iodine, which can help protect parts of the body from certain radioactive isotopes.

The experience of Chernobyl, the 1986 nuclear accident in Soviet Ukraine that sickened thousands and threatened the world with catastrophe, is a recent memory for the people of the former USSR and no doubt shaping the response of Arkhangelsk’s inhabitants to news of the explosion. The deceit and corruption that contributed to the Chernobyl disaster, well portrayed in an immensely popular recent HBO series, can be found in equal measure among the occupants of today’s Kremlin.

Within the press there is widespread speculation as to which weapons system was being tested last week outside of Nyonoska, with the explosion happening as the Russian government presses to expand its nuclear capabilities in the face of growing threats from the United States. On August 3, Washington formally scrapped the decades-old Intermediate Range Nuclear Forces Treaty.

Last week’s nuclear-test-gone-wrong underscores the immense dangers posed by both the American war drive and the frenzied efforts of Russia’s ruling class to shore up its position in response. Even as it guts social spending for an increasingly discontented, impoverished population, the Kremlin is trying to arm itself to the teeth.

Concerns grow over global financial stability

Nick Beams 

The current turmoil in financial markets was set off by the Trump administration’s threat to impose tariffs on an additional $300 billion worth of Chinese goods and its decision to label China a “currency manipulator,” following Beijing’s move to allow the renminbi to fall. The extreme volatility has prompted questions about the stability of the global financial system.

But the latest round in the US-China conflict was only the catalyst for the emergence of these issues. Under conditions where the world economy is clearly on a recessionary trend—the euro zone is slowing and the UK economy contracted in the second quarter—the deeper question now coming to the surface is how long central banks can continue to pump money into the financial system without setting off a systemic crisis?

Having cut interest rates to record lows in response to the global financial crisis of 2008, the world’s major central banks have reversed their policy of trying to “normalise” monetary policy and are moving to provide further stimulus.

The US Fed cut interest rates last month and is set to do so again in September, with the prospect that more cuts may follow. The European Central Bank has signaled it is looking to further ease monetary policy at its meeting next September, and the central banks of Australia, New Zealand, India and Thailand have already moved and cut their rates.

The results so far have created a historically unprecedented situation in bond markets. It is estimated that some $15 trillion worth of government bonds are trading at negative yields, meaning an investor who purchased the bond and held it to maturity would make a loss.

This phenomenon may spread still further. Over the weekend, the Wall Street Journal published a lead article with the headline “Investors Ponder Negative Bond Yields in the US.” It quoted one financial analyst who noted that if you had raised the prospect of negative rates 10 years ago you would have been “laughed out of the room,” but now “people are getting on board the negative-rate idea very quickly.”

The fall in long-term interest rates is essentially a vote of no confidence in the prospects for global growth, as investors seek safe havens for the cash that has been injected into the system. If there were opportunities for profitable investments in the real economy, money would move in that direction. Instead it is being pushed into financial assets.

In the market for equities, this leads to higher stock prices. It also brings higher bond prices, pushing down their yield, since the two factors move in the opposite direction.

In an expression of the growing concern, the Journal article cited another analyst who said he was “perplexed” over yield levels and it was as if “Armageddon is being priced in.”

Across the Atlantic, similar concerns have been voiced in the pages of the Financial Times. As a column by Rana Foroohar noted, the market volatility was “ostensibly triggered by the US-China conflict turning into a full-blown currency war.”

But, she continued, at its heart it was about the “inability of the Federal Reserve to convince us that the July rate cut was merely ‘insurance’ to protect against a future downturn,” when, “as any number of indicators now show… the global downturn has already begun.”

However, stock markets have in general continued to rise. But this is not an indication of health, as stocks are rated at their most expensive levels in more than a century. “I don’t think it’s a question of whether we’ll see a crash—the question is why we haven’t seen one yet,” she wrote.

There were “plenty of worried market participants,” as evidenced by the record levels of negative-yielding bonds around the world. When many are prepared to pay for the “security” of losing a little bit of money as a hedge against losing a lot, “you know there’s something deeply wrong in the world.”

Eight-hour power blackout hits Indonesian capital

Owen Howell 

The Indonesian capital was thrown into chaos early this month when a major power blackout spread across the entire city and surrounding areas. It began at around midday on August 4 and continued until 8 p.m., when power was gradually restored.

For some parts of Jakarta, however, the power supply only lasted two or three hours before it shut down again. Large sections of the city remained in darkness into the following morning.

The blackout affected tens of millions of people across Greater Jakarta and in the neighbouring provinces of West Java and Banten. Power outages are by no means rare occurrences in Jakarta but they are usually short-lived and confined to particular areas in the city.

Some offices, shopping centres, and apartments were able to use their own back-up generators as did hospitals and the Soekarno-Hatta International Airport, which continued throughout the day without hindrance.

The city’s train service and the newly-opened mass rapid transit (MRT) system, on the other hand, came to a sudden halt, leaving passengers stranded at stations after being evacuated from the trains. Over 800,000 commuters use the regional train service per day on a weekend. Buses then replaced the crippled metro system, but could only accept cash as digital payments were not working.

Traffic lights stopped across most of the city, worsening the notorious congestion of Jakarta’s roads. Traffic jams soon developed at many crowded intersections. ATMs were down, while sporadic disruptions to major mobile phone networks, including Telkomsel, XL, and Indosat, left people unable to connect to the internet.

PLN (Perusahaan Listrik Negara–State Electricity Company) issued an initial statement explaining that the blackout started when seven gas turbines from various power plants were tripped and shut down. A few hours later, it revealed that faulty transmission circuits on the Unggaran-Pemalang line in Central Java were responsible for causing the voltage drops that hit the turbines.

PLN, which is a government-owned corporation and has a nationwide monopoly on electricity distribution, generates most of the country’s electrical power. PLN electricity supplies are more reliable in Java where the grid is better developed than elsewhere in the country because most areas are serviced by localised systems, often powered by small diesel plants.

Power outages, however, are still common in Java. In 2005, a widespread five-hour blackout in Java and Bali affected around 100 million people.

While sudden extended blackouts were numerous under the former Yudhoyono government, Joko Widodo promised from the beginning of his presidency to improve the country’s power infrastructure.

Over 50,000 join opposition protests in Moscow

Clara Weiss

An estimated 50,000-60,000 people joined an officially sanctioned rally by the liberal opposition on Saturday in the city center of Moscow. The rally was held under the slogan “Let’s take back our right to vote.” Its main demands were the inclusion of liberal opposition candidates on the ballot for the Moscow City Council elections on September 8 and the release of politicians who have been arrested in the previous week as part of a massive police crackdown on the opposition. Smaller protests took place in St. Petersburg and several other cities.

The call for the protest was supported by all the major figures of the liberal opposition in Russia, including Alexei Navalny, who is still in jail, and Liubov Sobol, who was arrested again just before the beginning of the rally. Several prominent entertainers, TV moderators and musicians also supported the protest, among them the popular YouTube moderator Yuri Dud. The rapper Face and electronic music group IC3PEAK, which count among the most popular musicians in Russia among youth, joined the rally with performances.

According to reports, a substantial portion of those attending were young people, many of whom had never joined an opposition protest before. A significant factor that contributed to the large turnout, beyond the participation of popular music groups, was the violent crackdown on the opposition in recent weeks. At two unsanctioned rallies, on July 27 and August 3, the police and paramilitary organization OMON, which forms part of the National Guard, arrested over 1,000 people, transforming the center of the Russian capital into a virtual state of siege. Hundreds of thousands of people have watched footage of the violent crackdown on social media.

Following the mass arrests, members of Alexei Navalny’s staff have continued to be subject to raids and criminal persecution.

As in previous weeks, there was a heavy presence of police and OMON. According to a report in the liberal Novaya Gazeta, OMON troops were brought in from other regions of the country, most notably Tula. By the end of Saturday, around 240 people had been arrested.

Many demonstrators, including prominent figures like Yuri Dud, came to the protest wrapped in or waving Russian flags. Slogans included: “Down with the Tsar [Putin]!” “Putin is a thief” and “Russia will be free.”

Amid growing social and political discontent within the working class, the Kremlin has seized upon the protests by the liberal opposition to both stage exercises of state repression against protests and step up the legal and political framework for the repression of mass protests.

On Friday, the state agency Roskomnadzor, which has overseen a massive extension of internet surveillance in recent years, called upon Google to stop advertising “illegal events” on YouTube. Should Google not comply with the request, the agency warned, the Russian government would consider this foreign interference into its sovereignty. The Stalinist KPRF, a “loyal opposition” of the ruling United Russia party in parliament, is now preparing a bill, scheduled to be introduced to parliament in the fall, which would threaten anyone accused of “virtual interference” in the electoral process with criminal persecution.

While the ongoing crackdown on the opposition must be seen as a serious warning and opposed as an attack on democratic rights, workers and youth must be warned about the extremely right-wing character of the political forces that stand behind the protests.

Study finds workplace injuries increase risk of death by suicide, drug overdose

Jessica Goldstein

In the US, life expectancy has fallen for the total population for the past three years for which data is available, from 2015 through 2017. Death rates in the younger age groups in particular drove this decline, with increases in 2016 and 2017 for those aged 25–44. These figures point to an intensifying social crisis, with many of the younger age group dying from “deaths of despair,” including drug and alcohol abuse and suicide.

A critical study conducted by the Boston University School of Public Health and the US Social Security Administration, published in the American Journal of Industrial Medicine in July, examines the complex interaction of several factors that affect an increasing number of workers in the US: depression, prescription drug use, early death and workplace injuries.

The study linked New Mexico workers’ compensation data for 100,806 workers injured between 1994 and 2000 with Social Security Administration earnings and mortality data through 2013 and National Death Index cause of death data. The workers’ data came from all industries, including agriculture, fishing and forestry; construction; retail trade; services; mining and extracting; and others.

The study found that workers who were injured at work were at significantly higher risk of death from suicide and/or drug overdose, as well as other serious health consequences, both mental and physical, as a result of losing work time and income from a work-related injury.

The study made note of the alarming increase in drug overdose deaths and suicides in the US over the past two decades. Deaths in the US from opioid overdose in 2015 were recorded as 2.5 times higher than in 2000, with an astonishing 13 percent increase between 2015 and 2016. Even more concerning is the increasing suicide rate, which rose by 30 percent from 1999 to 2016. Suicide has remained the tenth most frequent cause of death in the US since 2008.

The authors found that work-related or occupational injuries typically involve acute and chronic pain. In one study cited by the authors, 42 percent of workers with back injuries were prescribed opioids within one year of their injury. Sixteen percent continued the opioid use for one year, with the dose increasing substantially over time, resulting in a form of “medically managed” addiction.

Work-related injuries that require more than one week off, defined as “lost-time injuries” in the study, were found overall to have more negative consequences for workers’ long-term physical and mental health and well-being. Depression, one of the most well-documented consequences of work-related injuries, is strongly associated with a greater risk of suicide.

The study found that lost-time injuries took their toll on the life expectancy of workers, increasing the risk of mortality from both suicide and drug-related causes. Men who experienced such injuries were found to have a 72 percent greater risk of suicide and 29 percent greater risk of drug-induced death, while women were found to have a 92 percent greater risk of suicide and 33 percent greater risk of drug-induced death.

The differences between men and women in increased risk of “death of despair” following an occupational injury were not examined, but the data shows that regardless of gender, workers who are injured on the job are at substantially higher risk of death due to suicide or drug overdose.

UK growth contraction caps week of economic turbulence

Nick Beams

The British economy experienced a contraction in the second quarter, the first such event for seven years, in what is another indication of a slowdown in the world economy. Gross Domestic Product (GDP) fell 0.2 percent in the three months to June, down from an increase of 0.5 percent in the first quarter and under market expectations of a flat rate.

Underlying trends revealed in yesterday’s data from the Office for National Statistics point to the possibility of a further contraction in the third quarter. This would put the UK in a recession, defined as two consecutive quarters of economic contraction.

The decline was across the board. There was a 2.3 percent fall in manufacturing, business investment contracted by 0.5 percent and construction was down by 1.3 percent from the previous quarter. Growth in the services sector, one of the mainstays of the UK economy, slowed to 0.1 percent, its lowest level in three years.

The output data were impacted by the uncertainty over Brexit. In the first quarter, growth was boosted as firms added to their inventories in the run-up to the original Brexit deadline of March 29. They then ran them down when the deadline was extended to October 31, with changes in inventories subtracting 2.24 percentage points from GDP growth in the June quarter.

Household spending increased by 0.5 percent for the quarter and the expectation is that consumer spending may avert another overall contraction. However, that is not sustainable over the longer term.

As the chief economist at the Institute of Directors, Tej Parikh told the Financial Times: “While consumers have helped keep the economy afloat, it is increasingly worrying that underlying growth is largely absent.”

The British GDP data ended a week of deepening uncertainty in financial markets and growing fears of a recession in major areas of the global economy.

Data from Germany on exports and manufacturing showed that its economy is being significantly impacted by the uncertainties created by the US-China trade war.

The German purchasing managers’ index, a key indicator of economic activity, dropped to a seven-year low in July. Activity in the construction industry has dropped for the first time in nine months and the weakness in manufacturing is now being reflected in the labour market with hiring intentions falling to a six-year low.

The European Central Bank is expected to provide further monetary stimulus next month either by taking its base interest rate further into negative territory (it is already minus 0.4 percent) and/or resuming its purchases of financial assets.

But these measures will do little or nothing to boost the real economy. They will simply create further distortions in financial markets, which this week saw German government bonds trading with negative yields across the board.

Editorials in the world’s two leading financial newspapers, the Wall Street Journal and the Financial Times have pointed to the worsening trends revealed in events of this week.

5G: Assessing India's Options on Huawei

Anand Benegal


5G connectivity is an important telecommunications upgrade which is expected to propel digital revolution in India. At present, however, the Indian government's committee on 5G technology remains split on the issue of allowing Huawei’s participation in the upcoming trials. The broad consensus is that safeguards are needed before Huawei is allowed to participate. Research on 5G and policies made by other countries with regard to Huawei’s participation suggest that broadly, India has three options: a) a complete ban on Huawei; b) a carte blanche to Huawei; and c) a middle ground which would involve limiting and regulating the use of Huawei gear and/or implementing substantial testing and regulatory oversight.

A technical and legal review of the merits and de-merits of these options combined with capacity related assessments indicate that a middle ground might be the most feasible for India on Huawei.

A Complete Ban 5G possesses wide-ranging social and technological implications to the ‘Internet of Things’ (IoT) ecosystem (which extends internet connectivity to objects used in everyday life), and is identified as a key driver for future economic development. The technology is more closely interlinked than 4G, and therefore some countries like the US and Australia believe that the line separating “core” and ”non-core” network components becomes considerably blurred. These countries hold that any 5G telecom equipment manufactured by Huawei poses a very high national security risk.

The US, Australia, Japan, and New Zealand are countries that have currently banned Huawei from their 5G developments. In India, however, the inexpensive nature of Huawei equipment means that Indian telecom operators are likelier to prefer the option of using its equipment. Moreover, a ban represents a surface-level solution to the broader issue of establishing norms and policies that enhance telecom network security.

A Carte Blanche An alternative policy option is to give Huawei a free pass in developing core and non-core aspects of the 5G network. This policy is the least desirable one, because of the security risks posed by the company’s participation. Though Huawei has indicated a willingness to sign a “no back door” pact with India, the company’s links with the Chinese government are well known, and consequently, there may not be a guarantee of this pact being honoured, irrespective of whether Huawei itself intends to meet its commitments. The Communist Party of China maintains a branch inside Huawei, and Chinese domestic security laws can be invoked to ensure compliance for the purpose of intelligence sharing. In such a scenario, Huawei would likely cooperate. After all, state-backed finance is the major factor in how Huawei was able to keep costs lower than competitors such as Nokia and Ericsson.

Another related issue pertains to security negligence concerns. A cyber security evaluation report by a UK government oversight board highlighted substantial defects in software engineering and cyber security processes. A US IoT security firm too published an account of the extensive flaws inherent in Huawei firmware. So far, India’s DoT has not published similar assessments of Huawei, or of other potential 5G vendors. Such assessments should be carried out and published soon, to enhance awareness into telecom risks, and of vendors’ strengths and weaknesses.

A Middle Ground A middle ground option involves allowing the use of Huawei gear for non-core components whilst using other companies’ gear for core components, and/or implementing safeguards and comprehensive regulatory oversight. Huawei is not the only option for core 5G technology. Ericsson, Nokia, Cisco, and Samsung are some readily available alternatives. However, Huawei’s equipment is generally cheaper and is therefore often preferred by telecom operators.

However, the success of the middle ground strategy would rely heavily on India’s technical expertise and capacity for identifying cyber risk and recognising potential loopholes across the network chain. Experts consider 5G to be more insecure than 4G, and therefore, it is necessary for India to be able to recognise the security flaws in this technology. Although telecom operators might prefer using Huawei equipment due to its lower costs, the extent to which this would be a sound option would depend on the country’s ability to manage and mitigate network risk.

India’s recent effort to roll out the “Mandatory Testing and Certification of Telecom Equipments” (MTCTE) policy for mandatory pre-use testing and certification of telecom equipment indicates an inclination towards enhancing indigenous testing and regulatory capacity. Although the policy is currently in its early days, it is expected that the MTCTE’s vision is to eventually test and certify all telecommunications equipment, from network equipment down to user devices.

India’s policy direction seems aligned with those of France and the UK. In July 2019, France legislated in favour of implementing safeguards in core technology and an extensive review of components and gear. In its analysis of this legislation, a Bloomberg report found that these tests “may be tantamount to suppliers handing over industrial secrets” for 5G bidding eligibility. In April 2019, the UK announced that it will use Huawei equipment for non-core components whilst blocking its use for core technology. Meanwhile, the EU—with whom India is engaging to receive recommendations and guidance regarding 5G security—seems to be moving towards the middle ground policy as well. For instance, in May 2019, Dutch telecom carrier KPN stated that it will use Huawei antennae and base stations but will select a Western vendor to supply its network “core” equipment.

Looking Ahead At present, it appears that neither a complete ban on, nor a carte blanche to, Huawei equipment are feasible options. However, if India deems that Huawei telecom equipment is altogether unsafe, it could find a complete ban to be a logical option. That being said, extensively testing and regulating 5G equipment, isolating core and non-core network components, and implementing oversight on Huawei gear, could help India keep costs and network risks low. More importantly, the process could also catalyse India’s effort to enhance its telecom security capacities considerably.

1,500 Chevening Scholarships 2020/2021 in UK for Developing Countries (Fully-Funded)

Application Deadline: 5th November 2019 12pm BST

Offered annually? Yes

Eligible African Countries: Developing countries

To be taken at (country): UK Universities

Eligible Fields of Study: Chevening Scholarships are awarded across a wide range of fields; including politics, government, business, the media, the environment, civil society, religion, and academia in any UK University

About Scholarship: Chevening Scholarships are awarded to individuals with strong academic backgrounds who also have demonstrable leadership potential. The scholarship offers financial support to study for a Master’s degree at any of the UK’s leading universities and the opportunity to become part of an influential global network of 44,000 alumni. There are approximately 1,500 Chevening Scholarships on offer globally for the2018/2019 academic cycle. These scholarships represent a significant investment from the UK government to develop the next cohort of global leaders.
Prior to starting your application for a Chevening Scholarship please ensure you have the following ready:

• Essential: Three different UK master’s course choices
• Optional: English language test results (if you’ve already met the requirements) 
• Optional: UK master’s university offer (if you’ve already met the requirements)

Scholarship Offered Since: 1983

Eligibility: To be eligible for a Chevening Scholarship you must:

• Be a citizen of a Chevening-eligible country
• Return to your country of citizenship for a minimum of two years after your award has ended
• Have an undergraduate degree that will enable you to gain entry onto a postgraduate programme at a UK university. This is typically equivalent to an upper second-class 2:1 honours degree in the UK.
• Have at least two years’ work experience (this may be up to five years for fellowship programmes, so please refer to your country page for further details)
• Apply to three different eligible UK university courses and have received an unconditional offer from one of these choices by 11 July 2019
• Meet the Chevening English language requirement by 11 July 2019

Number of Scholarship: 1,500

Value of Scholarship: A full Chevening Scholarship award normally comprises:

• payment of tuition fees;
• travel to and from your country of residence by an approved route for you only;
• an arrival allowance;
• a grant for the cost of preparation of a thesis or dissertation (if required);
• an excess baggage allowance;
• the cost of an entry clearance (visa) application for you only;
• a monthly personal living allowance (stipend) to cover accommodation and living expenses. The monthly stipend will depend on whether you are studying inside or outside London. It is currently £917 per month outside London and £1134 per month inside London (subject to annual review).

Duration of Scholarship: One year

How can I Apply? To apply for a Chevening Scholarship, you must complete and submit an online eChevening application form.
It is important to go through the application instructions on the scholarship webpage before applying.

Visit Award Webpage for Details

Sponsors: Chevening Scholarships are funded by the Foreign and Commonwealth Office (FCO), with further contributions from universities and other partners in the UK and overseas, including governmental and private sector bodies.

Important Notes: The process of selecting Chevening Scholars takes a minimum of eight months from the application deadline to when scholars are conditionally selected for an award.

Africa-India Mobility Fund 2019 for African and Indian Researchers

Application Deadline: 4th October 2019 at 5 PM EAT.

Eligible Countries: African countries and India

To Be Taken At (Country): African countries and India (In an exchange format)

About the Award: The AIMF initiative by the African Academy of Sciences and the Wellcome Trust/DBT India Alliance (India Alliance) intends to encourage South-South collaborations and learning between the two ecosystems. This is in recognition of the fact that Africa and India face similar challenges, both in the diseases that affect their populations and socio-political issues as well as the leadership required to address these. The exchanges are expected to enhance their skills and contribute to the growth of knowledge and leadership towards common health challenges.

Objectives

• To strengthen research & innovation capacity and knowledge exchange
• To strengthen scientific collaboration between Indian and African teams

Type: Short courses, Grants

Eligibility: 

• Applicants must be nationals of India or nationals of countries within Africa.
• They should be based either in Africa or in India, and should be affiliated with a recognised academic, medical, research institution, or other similar institutions. Those based at for-profit organisations are not eligible.
• The call is also open to non-African investigators who must be resident in Africa or Overseas Citizen of India (evidence may be requested), have an appointment/affiliation with an African/Indian institution, and their residence and tenure of service with the appointing African/Indian institution should cover the duration of the award.
• Travel should be between an African country and India and can be in either direction. Travel within Africa can also be sought for an engagement of more than one African country with India.
• Applicants must have a PhD/MD or equivalent research qualification and hold a permanent or fixed-term contract in an eligible institution, which must span the duration of the project.
• Collaboration should focus on a single project involving researchers in Africa and India, respectively.
• An applicant is eligible to receive only one grant per year.

Selection Criteria:

• The candidate – evidence of scientific track record or achievements (if young researcher) in the specified project area and demonstrated interest in collaborating with India/Africa.
• The proposal – scientific quality and feasibility of the proposal.
• Evidence that the grant will facilitate scientific exchange that would otherwise not be possible from distance. Evidence of added value for addressing the disease area/challenge and for fostering Africa-India collaboration.

Number of Awards: Not specified

Value of Award: 

• The award will cover directly incurred costs up to $5,000 / INR 325,000 for travel lasting up to 3 months. This is to cover the applicant’s airfare (at Economy class) and subsistence whilst on the visit. Salaries and fees to attend meetings will not be eligible. An additional $2,500 may be requested for laboratory reagents, however, the decision to award the extra funds will be on case by case basis upon justification of the needs.
• The amount of each individual award will vary according to location and timescale. For example, if staying for a 3-month placement, the applicant may be expected to source university accommodation, or a short term let. However, if visiting for a week, a hotel or equivalent may be more suitable. The decision committee will consider whether the expenses are reasonable and may ask for revised costing.
• Please note that the grant can only be used to deliver the objectives stated in the grant application. Ensure that the best estimates for the full cost of undertaking the project described in the application are requested.
• Applicants may not seek funding for conference attendance, salary, equipment, per diem and indirect costs.

Duration of Program: 3 months.

How to Apply: To apply, visit The AAS Grants Management System Ishango 

Visit the Program Webpage for Details

Award Providers: The AIMF initiative by the African Academy of Sciences and the Wellcome Trust/DBT India Alliance (India Alliance)


Important Notes: Please note that the grant can only be used to deliver the objectives stated in the grant application. Ensure that the best estimates for the full cost of undertaking the project described in the application are requested.

AWDT African Writers Residency 2019 for African Writers (Fully-funded)

Application Deadline: 7th September 2019

Eligible Countries: Applicants from Benin Republic, Burkina Faso, Rwanda, Congo DR, and Nigeria

To be Taken at (Country): Abuja, Nigeria

About the Award: According to Anthony Onugba, the Executive Director of the African Writers Development Trust, applicants from Benin Republic, Burkina Faso, Rwanda, Congo DR, and Nigeria, are invited to apply and are required to submit a nonfiction story of not more than 1500 words on the theme, The African Identity. The fully-funded residency programme will take place in Abuja, Nigeria, in November 2019 for 21 days.

Type: Short course

Eligibility: In order to qualify for this residency, you must be fluent in English and must be a citizen of and resident in the following countries

Number of Awards: Not specified

Value of Award: A fully-funded residency programme .

• Applicants are invited to apply and are required to submit a nonfiction story of not more than 1500 words on the theme, The African Identity.
• The writers will write two short stories which will have a cultural undertone. A total of 24 short stories from the writers will be compiled in a book and disseminated in hardback and eBook formats. The residency programme will hold in Nigeria in November, 2019 and in Kenya in February 2020.

Duration of Award: 21 days.

How to Apply: To apply, you must be affiliated to an established literary community in your country.
• All applications must be made through and by your literary community.
• All applications must be sent via email to ppa@writerstrust.org.


*NOTE: each literary community can only send a maximum of 5 applications.
• Evidence of your affiliation to a literary community must be provided (said evidence can be in form of images of meetings, flyers of special events hosted by the literary community, etc).
• There is no fee attached to the application.

• It is important to go through all application requirements in the Award Webpage (see Link below) before applying.

Visit Award Webpage for Details

NUFFIC Short Courses Scholarships 2020 for Developing Countries

Application Deadline: 8^th October 2019

Eligible Countries: Eligible NFP Countries (see list below)

To be taken at (country): The Hague Academy, Netherlands

About the Award: Nuffic is a Dutch non-profit organisation which offers scholarships for training courses in The Netherlands. These scholarships seek to develop and strengthen the skills and abilities of professionals, in order to enable their organisations and communities to succeed in an ever-changing world. The Dutch Ministry of Foreign Affairs funds the Nuffic Scholarship programme.
The Nuffic Scholarships for short courses at The Hague Academy (OKP, MSP and StuNed) cover the tuition fee, return flights (from an international airport to Amsterdam), insurance, and accommodation, in addition to a small Daily Subsistence Allowance. Follow the links below to find out more about the scholarship programmes available, the application deadlines and the application procedures.

Available Courses:
Deadline 8^th October 2019 (Registration opens 1st August 2019)

• Migration and Local Authorities (24 February – 6 March 2020)
• Inclusive Service Delivery and the SDGs (9 -20 March 2020)
• Citizen Participation and Inclusive Governance (23 March – 3 April 2020)
• Climate Adaptation and Local Resilience (1 – 12 June 2020)
• Integrity and Anti-Corruption (15 – 26 June 2020)

Deadline 7^th March 2020 (Registration opens 15^th October 2019)

• Multilevel Water Governance (7 – 18 September 2020)
• Local Economic Development (21 September – 2 October 2020)
• Conflict, Rule of Law and Local Security (26 October – 6 November 2020)
• Gender Responsive Governance (16 – 27 November 2020)

Deadline 4^th July 2020 (Registration opens 14^th March 2020)

• Fiscal Decentralisation and Local Finance 2021 (Feb 2021)

Type: Short Courses

Eligibility: There is a set of criteria for each course. Go through your preferred course and do make sure to read thoroughly before applying.

Number of Trainees: 

• minimum number of participants is six persons;
• maximum number of participants is 20 persons;

Value of Training: The Nuffic Scholarships for short courses at The Hague Academy (OKP, MSP and StuNed) cover the tuition fee, return flights (from an international airport to Amsterdam), insurance, and accommodation, in addition to a small Daily Subsistence Allowance.

Duration of Training: 2-3 weeks

Eligible African Countries: Ethiopia, Nigeria, Ghana, Benin, Guinea-Bissau, Rwanda, Senegal, South Africa, Sudan, Burkina Faso, Ivory Coast, Burundi, Tanzania, Kenya, Cape Verde, Uganda, Mali, Zambia, DR Congo, Zimbabwe, Mozambique, Egypt, Namibia

Other Developing Countries outside Africa? Afghanistan, Eritrea, Nicaragua, Albania, Armenia, Georgia, Pakistan, Autonomous Palestinian Territories, Peru, Bangladesh, Guatemala, Philippines, Bhutan, Honduras, Bolivia, India, Bosnia-Herzegovina, Indonesia, Sri Lanka, Brazil, Iran, Suriname, Jordan, Cambodia, Thailand, Kosovo, Colombia, Macedonia, Vietnam, Costa Rica, Yemen, Cuba, Moldova, Mongolia, Ecuador, El Salvador, Nepal

How to Apply: Apply in Links above


Visit Scholarship Webpage for details