World Bank Head Calls for Business-like Focus on Health, Education

The fight against poverty needs to focus aggressively on the health and education of the young and vulnerable, said non-government organization and development officials who spoke at the Milken Institute Global Conference in Los Angeles recently. 

World Bank President Jim Yong Kim said that social unrest will spread without a focus on meeting basic human needs and taking a businesslike approach to philanthropy. The critique comes as a powerful new player, China, forges a major role in international development and as the World Bank prepares a ranking of nations to reflect investments in people.

One in 10 people around the world lives in extreme poverty, which the World Bank defines as earning less than $1.90 a day. Nearly 6 million children under the age of 5 die every year, many from preventable diseases like pneumonia, diarrhea or malaria.

Malnutrition, stunted growth, and cognitive impairment affect more than 150 million young children around the world, especially in sub-Saharan Africa and South Asia, leaving citizens unprepared for the automated economy of the future, said Kim. In Afghanistan, half of all young children are stunted in their development, along with one in three in Indonesia. Kim said the numbers are improving, but not fast enough. 

“Many, many, many people will find themselves undereducated and without the skills to be able to compete in the economy of the future,” he said, “and so many countries are going to go down the path of fragility, conflict, violence, and then of course, extremism and migration.”

Kim said the mindset has to change. Too often, he said, national leaders and finance ministers pursue investments in “roads and railways and industrial parks,” ignoring the data that Kim said shows links among health, education and productivity. The World Bank plans to release a nation-by-nation ranking measuring health and education in its first Human Capital Index in October, which Kim said will shame some countries and prod leaders to view social investments more seriously.

There are success stories in the battle against disease and illiteracy, said a former U.S. aid official who now leads the Rockefeller Foundation.

“When you look at countries like Rwanda,” said Rajiv Shah, the foundation’s president, “they’ve achieved a 70 percent reduction in child mortality in just one decade. So, we know that nations can be successful. What it takes, though, is more political will, more focus on science and technology.”

Shah said improvements in health and education produce measurable economic results. “A dollar invested in community health generates $7 to $10 dollars in economic value,” he said, and improving the health of children and reducing child mortality results in families having fewer children and investing more in their education.

China loans

Joining the United States as a major development lender and donor, China has expanded its footprint in the world with loans and aid to 140 countries, by one count exceeding $350 billion over a 14-year period.

In March, China announced a new aid agency, the International Development Cooperation Agency, to coordinate its overseas development efforts. Critics say China’s development outreach comes with fewer restrictions than those imposed by Western agencies regarding corruption, governance and human rights.

Part of the agency’s mandate is to promote China’s Belt and Road initiative, improving the infrastructure to promote Chinese trade, and extend China’s influence across Eurasia.

The Chinese say “their form of interaction, which is basically doing business…is preferable to the way Western institutions have engaged in the past,” said Matt Ferchen, a nonresident scholar at the Carnegie-Tsinghua Center for Global Policy. He said much of Chinese lending is in the form of commercial loans from state development banks, and the role of the new agency may be to coordinate Chinese overseas investments. China’s growing involvement in developing economies worries some, but Ferchen said the jury is still out on its impact. 

He said the new Chinese aid arm, the International Development Cooperation Agency, is the result of a bureaucratic restructuring aimed at coordinating development projects across the various branches of Chinese government.

World Bank lending totaled nearly $59 billion last year, projects that ranged from infrastructure projects in transportation and energy to refugee resettlement and basic needs like health and education. 

The World Bank’s Kim said all are important, and a focus on people is good for business.

One health sector official welcomes the approach. 

“The biggest asset class that we have is our talent,” said Tanisha Carino, executive director of FasterCures, a nonprofit organization funded by the Milken Institute. She said nations view people as assets.

“We’re never going to unlock that potential for creativity, for the next generation innovation, for the next cure that we have in the marketplace,” she said.

These analysts said that a stable, prosperous world requires a focus on human needs and that the dividends will follow. 

 

Trump Vows Action to Ease Job Loss at Chinese Tech Giant

President Donald Trump says he is looking for a way to let a Chinese technology firm “get back into business fast” after U.S. trade ruling severely crippled the company.

“Too many jobs in China lost,” Trump tweeted Sunday, days after ZTE announced it had ceased “major operating activities.”

The U.S. had cut off exports of U.S.-made parts to ZTE — more than 25 percent of the components ZTE needs to build its wireless stations, optical fiber networks and smartphones.

The U.S. cutoff came after ZTE was, in the words of one expert, “caught red-handed” putting the U.S. technology into products and selling those goods to countries under a U.S. trade embargo, including Iran and North Korea.

The U.S. fined ZTE $1.2 billion last year. But the U.S. said last month ZTE lied about punishing the employees believed to be involved in skirting the sanctions, paying them bonuses instead.

The Commerce Department cut off ZTE’s access to U.S. components until 2025, forcing it to shut down operations at its factory in Shenzhen.

Trump has often complained about China stealing U.S. jobs. But he tweeted he is working with Chinese President Xi Jinping to ease the economic fallout at ZTE and ordered the U.S. Commerce Department “to get it done!”

“The president’s tweet underscores the importance of a free, fair, balanced, and mutually beneficial economic trade and investment relationship between the United States and China,” the White House said Sunday. “The administration is in contact with China on this issue, among others, in the bilateral relationship.”

Douglas Jacobson, an attorney who represents suppliers who do business with ZTE, told VOA that Trump’s order to help ZTE is a stunning decision and one bound to make U.S. law enforcement officials unhappy by going over their heads.

“This has caught all of those in the exports and sanctions world certainly by surprise and with some degree of shock and awe,” Jacobson said. “This is unprecedented that the president of the United States would intervene in what really is a law enforcement case.”

But Jacobson said the ZTE matter is not a sign of a general thaw in trade tensions between the U.S. and China, including the recent tit-for-tat tariffs.

Jacobson said he believes Trump may be willing to make a concession on China in exchange for China’s help with North Korea.

Steve Herman, Ken Bredemeier, Ira Mellman and Kenneth Schwartz contributed to this report.

 

Australia Steps up Effort to Save Vulnerable Koalas

A koala hospital and new wildlife reserves are the focus of one of Australia’s boldest plans to protect the vulnerable marsupial. Almost 25,000 hectares of state forest will be set aside for koalas in New South Wales state, which will also set up a new clinic north of Sydney to provide specialist care for sick and injured animals.

Koalas are officially listed as vulnerable to extinction in New South Wales. The state government is to spend $34 million on a range of measures to protect the iconic marsupial.Special reserves will be set up where the animals will be able to breed freely.

The koala population in New South Wales has fallen by a quarter over the past two decades. It is estimated there are 36,000 koalas left in the state.Their numbers have also fallen in other parts of Australia.

The animals face various threats, including a loss of habitat due to land-clearing, attacks by dogs, bushfires, heatwaves and road accidents. A sexually-transmitted disease — chlamydia — is also harming the health of many koalas.

Special measures will also be put in place to help drivers avoid koalas that stray onto highways, including better signs. Tunnels and specially-made bridges have also allowed wildlife to traverse roads while avoiding cars and trucks.

New South Wales environment minister Gabrielle Upton hopes to set up a network of koala and wildlife hospitals to help injured animals.

“This is so there are places that we can have resident expertise in one placein places where we know that koala populations are present and need to be sustained and therefore increased over time. We are going to trial chlamydia vaccinations. Chlamydia is a disease that impacts them most severely on the north coast in New South Wales. There are some really practical parts of this package that address some of the roadkill hot-spots,” said Upton.

“We have had some success with underpasses and overpasses in areas where they know they have core habitat. We need to ensure we have the right road signs, the right fencing.”

The new koala clinic will be set up in Port Stephens, north of Sydney. It will join an existing hospital in the regional town of Port Macquarie that began treating injured marsupials in 1973.

Conservationists have welcomed the new facility but argue that the New South Wales state government’s multi-million dollar plan does not address the number one threat to koalas – land clearing and logging.

The koala lives in trees and has large furry ears, sharp claws adapted for climbing and no tail. It features in many Aboriginal stories of creation and is considered a totemic species.

Hometown Celebrates Markle’s Sparkling Personality, Charitable Works

People in her hometown of Los Angeles remember actress Meghan Markle as a charitable young girl who sparkled on stage. Next week the entire world will be watching Markle as she officially ties the knot to England’s most eligible bachelor. VOA Correspondent Mariama Diallo takes a look at Markle’s fairy tale life and the prince that some say is the lucky one.

Management Training in India Aims to Empower Professional Women

There’s a push to level the playing field for women in India, where women account for 42 percent of university graduates but only 24 percent are hired as entry level professionals. Of these, 19 percent are likely to reach senior level management. To make matters worse, the number of women who leave the work force is also higher than men. As Ritul Joshi reports, a specially designed management course for women in New Delhi is teaching them to make their way in a male dominated work force.

Songbirds Could Help Unravel Human Speech Disorders

Scientists at Rockefeller University in New York discovered that the brains of songbirds use a similar process as humans do when learning to make sounds. And, as a result, VOA’s Deborah Block reports, the research could lead to treatments for people with speech impediments.

NASA to Send Tiny Helicopter to Mars 

NASA is planning to send a tiny autonomous helicopter to Mars on its next rover mission to the red planet.

The space agency announced Friday that the helicopter will be carried aboard the Mars 2020 rover as a technology demonstration to test its ability to serve as a scout and to reach locations not accessible by ground.

The helicopter is being developed at NASA’s Jet Propulsion Laboratory in Southern California.

The craft weighs less than 4 pounds (1.8 kilograms), has a fuselage about the size of a softball and twin, counter-rotating blades that will spin at almost 3,000 rpm — a necessity in the thin Martian atmosphere. Solar cells will charge its lithium-ion batteries.

Flights will be programmed because the distance to Mars precludes real-time commands from Earth.

Israel’s Netta Barzilai Wins 2018 Eurovision Song Contest

The Eurovision song contest has concluded for 2018, with the top prize going to Israel’s Netta Barzilai and her quirky girl-power song Toy.

The Eurovision contest is an international tradition pitting performers from 43 nations against each other and decided by viewers all over the world. Along with European nations, Australia and Israel are allowed to compete.

Barzilai’s song, a fast-paced pop number, featured throaty singing and unconventional mouth noises, including squeaks, pops and clucks, as she protested to her listeners that she would not be used as a plaything. Meanwhile, her backup singers cavorted and preened in a manner that was, at times, reminiscent of chickens strutting and flapping their wings.

Some viewers responded negatively online to the performer’s antics, but in the end, her unorthodox performance and #MeToo-friendly message won the day.

The show, staged in Lisbon, Portugal, was not without other controversies: British singer SuRie was interrupted onstage when a protester grabbed her microphone. The protester was quickly subdued and SuRie finished her performance, with viewers online lauding her for her calm response and strong finish.

An Australian broadcaster narrating the event, however, accidentally uttered an expletive on the air, prompting a storm of chatter on Twitter.

A Chinese video service, Mango TV, was barred by the European Broadcast Union from airing the event, after it edited out of Tuesday’s semifinal a performance featuring a romantic dance sequence by two men. It also reportedly blurred out images of rainbow flags in the audience.

Some 200 million viewers were expected to view Saturday’s performances.

Football Star Accuses Australian League of Racism

A former Australian Rules Footballer of Nigerian descent is taking legal action against the sport for alleged racial, sexual and religious discrimination.  Joel Wilkinson says the abuse he suffered was a “continuous breach of human rights” and insists that racism is rife in Australia’s most popular professional sport.  It is thought to be the first case of its kind in Australia.

In 2014, Wilkinson appeared in an anti-discrimination advert sponsored by the Australian Football League, the AFL in which he spoke of the abuse he had suffered on the field.

“I actually felt like he was trying to make me feel like I was a little kid, a little black kid, a little piece of dirt.”

But the former Gold Coast Suns player now alleges that the League’s public stance on racism is very different from what he says is a “much darker reality.”  He insists that his career ended abruptly in 2013 because he was so outspoken about the mistreatment he endured.

He is taking his case for compensation to Australia’s Human Rights Commission after talks with the AFL failed to reach an agreement.

“I have suffered extreme racism  during my time in the AFL and post my career in the AFL until this very day,” said Wilkinson. “My career was taken from me.  My rights were violated due to racism, religious vilification and racially-motivated sexual harassment that I experienced for many years.”

The AFL said in a statement that it was sorry the ex-player “had suffered experiences of racial abuse” during his time as a footballer, and that it was committed to resolving his complaint.

In 2013,  a famous Aboriginal AFL player was taunted by a young spectator who called him an ape.’  The 13-year old girl later apologized for her behavior.

The competition is Australia’s most-watched professional sport.  Matches in the city of Melbourne attract up to 100,000 fans.  The Australian Football League has more than 80 Indigenous players, about 10 per cent of the total.   It has also featured players with Jamaican, Lebanese and Sudanese heritage.

Rights groups have previously praised the League’s efforts to tackle racism in Australia.

Turkish Ambassador’s Residence Tells Many Tales

The Everett House, which serves as the Turkish ambassador’s residence, is a Washington landmark. It is also famous as the one-time home of the Ertegun family, the brothers who would go on to found Atlantic records and change the sound of American jazz and pop music. But the Erteguns also played a role in Washington history by standing with African Americans in what was, at the time, a deeply segregated city. VOA’s Ozlem Tinaz reports.

Creating Milk Alternatives for Animal Babies

Aardvarks are not the most attractive animals. They have rabbitlike ears, a kangaroo tail and a nose like a pig. But they are mammals, and that means they feed their babies milk. At the Cincinnati Zoo in Ohio, an aardvark mother is contributing to the largest collection of exotic animal milk in the world. As Faiza Elmasry tells us, the milk is used to learn about mammal nutrition and help create milk alternatives for animal babies that need to be hand-raised. VOA’s Faith Lapidus narrates.

How Close Is Electric Aviation?

Electric-powered ground transport is slowly but steadily taking over from one based on fossil fuels. Electric cars, buses, bikes, scooters, even electric skateboards are growing more common on streets around the world. The next step is electric aviation, and airplane manufacturers are eyeing this potentially very lucrative market. VOA’s George Putic reports.

Rockefeller Treasures Set Record at Auction

Peggy and David Rockefeller’s lavish artworks and other treasures set a new world record this week at a Christie’s auction, topping $800 million as the priciest single-owner collection.

That’s about twice the previous record of $484 million from a 2009 Paris sale of designer Yves Saint Laurent’s estate.

The three-day live sale of the late couple’s belongings ended Thursday with a $115 million star lot — a Picasso painting called “Fillette a la corbeille fleurie” of a naked girl holding a basket of flowers that once belonged to the writer Gertrude Stein, estimated to be worth $100 million. The runner-up, at $84 million, was a Monet canvas with his famed water lilies, “Nimpheas en fleur,” which surpassed its $50 million estimate and set a record for his art at auction against a previous high of $81 million.

Matisse’s “Odalisque Couchee aux Magnolias,” depicting a woman in a Turkish harem, sold for $80.8 million, topping the $70 million estimate and setting a new record for a Matisse, whose highest price at auction had been $48.8 million.

​Rockefeller Mania

In what one art publication dubbed “Rockefeller Mania,” Christie’s said 100 percent of the 893 Rockefeller lots offered live had sold, for a total of $828 million, as well as all of the more than 600 lots sold online for $4.6 million.

Diego Rivera’s 1931 “The Rivals” went for the highest price ever paid for a Latin American artwork on the block, $9.8 million against a pre-auction estimate of $5 million to $7 million.

On Friday, the sale wasn’t over until the online-only bids were in. Anyone with a few hundred dollars could go for a piece of the opulence that surrounded the late Rockefeller couple, by bidding on, say, cufflinks or jewelry. A 14-carat gold money clip once filled with Rockefeller cash sold for $75,000 against an estimate of $800 to $1,200.

Eclectic tastes

The total 1,564 Rockefeller lots reflected the couple’s eclectic tastes in everything from fine furniture, porcelain and ceramics to duck decoys and blue-chip art that graced their various properties and David’s bank office. Paintings filled the walls of their Maine home, their Manhattan townhouse and a country mansion in the Pocantino Hills north of the city, complete with horses and cows.

For a whiff of that life, buyers were willing to pay prices way above the pre-auction estimates.

A rare Chinese blue and white “dragon” bowl from the Maine kitchen cabinet, valued at up to $150,000, went for $2.7 million. A bronze figure of the Buddhist deity Amitayus realized $2.5 million, against a $600,000 high estimate.

A 256-piece Sevres dessert service commissioned by Napoleon Bonaparte sold for $1.8 million — more than six times its high estimate.

Six George III “Gothick” Windsor Armchairs sold for $336,500 against a top estimate of $80,000, and an English wicker picnic hamper soared to $212,500, against a high estimate of $10,000.

​Proceeds go to charity

All prices include buyers’ premiums. Christie’s bolstered the auction by guaranteeing the whole Rockefeller collection, not disclosing the minimum price at which a work would have to sell or buyers’ names. Many came from abroad, drawn to the New York power name that dominated the city’s privileged, philanthropic society for a century.

Peggy died in 1996, and David in 2017, as the last surviving grandson of the oil baron John D. Rockefeller. The couple’s son, David Rockefeller Jr., said auction proceeds would go to charity.

The collection ended up, appropriately, in Rockefeller Center off Fifth Avenue where Christie’s is located. John D. Rockefeller Jr. had helped finance and build the grand complex in the 1930s.

‘Solo’ Lands in ‘Star Wars’ Galaxy, Puts Drama Behind

The latest “Star Wars” movie did not have a smooth flight to the screen, but the director and cast of “Solo” say the scramble to remake the movie ultimately paid off, with early reaction ahead of the May 25 launch largely positive.

Original directors Phil Lord and Chris Miller were fired from “Solo: A Star Wars Story” midway through production, and Walt Disney Co. asked Ron Howard to come in to oversee extensive reshoots.

The film, which tells the origin story of Han Solo, premiered in Hollywood on Thursday and drew cheers and applause throughout from the crowds in two historic theaters, the first large audiences to see the finished product.

“We went so fast to get the movie ready,” Howard said in an interview with Reuters on Friday. “I was really on pins and needles, and I was so gratified to hear laughs and hear cheers in all the places I hoped and I dreamed that they would be. It was a good night. I slept well last night.”

Alden Ehrenreich, 28, stepped into the role of cowboy smuggler Han Solo, made famous by Harrison Ford in the original “Star Wars” trilogy that began in 1977. Ehrenreich plays a younger Solo just beginning his pilot training and seeking his own spaceship when he becomes involved in a dangerous mission in the galaxy far, far away.

“Game of Thrones” star Emilia Clarke, who portrays Solo’s childhood friend Qi’ra, said the change of directors produced less drama than people may think.

“Something that on paper sounds horrific was not in reality at all for someone who was in it and experienced and was living through it,” Clarke said. “Everyone who handled it was seamless and graceful.”

Fans around the world have debated how Ehrenreich, little known beyond a well-received performance in quirky 2016 comedy “Hail, Caesar,” would handle one of cinema’s most loved characters.

Ehrenreich confirmed he had signed a contract to play Solo in three movies and said he was anxious to step into the role again in future installments.

“By the end of the movie, he’s more like the guy we know, and that’s fun,” Ehrenreich said.

Facebook Checks Its Bias

When Facebook recently said it would allow outside reviewers inside its platform to look for signs of racial or political bias, civil liberties and human rights activists politely applauded.

For years, activists have called on tech companies to undergo assessments of how their policies affect people, both in the U.S. and globally. The companies have long rejected those audits as unnecessary.

But now Facebook is inviting outsiders in to look at allegations of racial and political bias.

“It’s better than nothing,” Rebecca MacKinnon said of the Facebook audits. She is director of Ranking Digital Rights a project that evaluates 22 tech and telecommunications firms annually in areas such as privacy, expression and governance.

“There’s increasing pressure on them to do this kind of thing,” MacKinnon added.

Facebook has faced criticism that it has allowed advertisers to use racial and ethnic profiles to target job and housing ads. American political conservatives have complained that Facebook has removed or taken down legitimate content because of its liberal bias, something the company has denied.

Both issues came under scrutiny following the 2016 U.S. election, but activists say the company’s focus on issues mainly concerning American users is overshadowing Facebook’s bigger problems with the platform abroad.

“The audits that Facebook is doing in the U.S., while welcomed, are very U.S.-centered,” said Arvind Ganesan, director of Human Rights Watch’s business and human rights division. “That’s really a response to domestic pressure.”

Call for global assessments

Critics say Facebook’s bias problems do not stop at the U.S. border. They point to the role that the platform is alleged to have played in incidents of mass violence, such as the persecution of ethnic Rohingya in Myanmar in recent years or sectarian violence in Sri Lanka.

The United Nations reported that in the case of violence in Myanmar, Facebook “substantively” contributed to the level of conflict.

Facebook’s News Feed, which highlights content of interest to a user based on the person’s friends and preferences, has also been accused of reinforcing false or inflammatory stories that go viral. That can help extreme viewpoints get in front of a mainstream audience.

Critics say the company is only starting to come to grips with the issue.

“There needs to be an honest, candid, comprehensive assessment,” said HRW’s Ganesan. “What is the panoply of Facebook’s impact?”

Transparency as industry trend

Self-assessments are nothing new for tech firms. Starting with Google in 2010, tech companies began publishing transparency reports that provide snapshots of how governments have turned to firms for user data or issued takedown notices because of copyright infringement or other reasons.

More than 60 companies regularly file transparency reports, according to Access Now, a digital rights group in New York.

Eleven companies, including Google and Facebook, undergo outside assessments every two years by the Global Network Initiative, a nongovernmental organization that looks at how companies are responding to government requests.

In its recent assessment, Ranking Digital Rights, which is a nonprofit research initiative affiliated with the nonpartisan New America Foundation think tank, gave low marks to Facebook for disclosing less information than other tech firms about how it handles data that can be used to identify, profile or track users.

Apple earned the greatest year-over-year score improvement of any company because it “strengthened its public commitment to protecting users’ privacy as a human right,” the report said.

How effective these assessments are in spurring companies to change is unclear. But company-run reports and outside audits can help find and measure problems, human rights advocates say.

“We call on Facebook to engage with stakeholders wherever it impacts human rights — the burden extends globally,” said Peter Micek with Access Now.” It doesn’t make sense from a human rights perspective to treat the U.S. exceptionally.”

Latest Round of NAFTA Talks Ends Without Breakthrough

Senior officials from the United States, Canada and Mexico ended the latest round of talks on the North American Free Trade Agreement without any major breakthroughs on how to renegotiate the deal.

U.S. Trade Representative Robert Lighthizer said Friday after a week of talks in Washington that the United States will continue to work with its partners to update the 1994 trade pact. 

“The United States is ready to continue working with Mexico and Canada to achieve needed breakthroughs on these objectives,” he said.

The talks involved all three of the top officials in the NAFTA negotiations: Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo.

The talks have come under increased pressure to produce a deal quickly after U.S. House Speaker Paul Ryan said this week he would need to be notified of a new agreement by May 17 to give the current Congress a chance to pass it this year.

Guajardo said Friday that revising the deal will take time. “We’re not going to sacrifice the quality of an agreement because of pressure of time. We’ll keep engaged,” he said.

Freeland echoed those comments. “The negotiations will take as long as it takes to get a good deal.”

She told reporters that there was a long “to-do” list to finish a renegotiation of NAFTA, but said the talks were making progress.

U.S. President Donald Trump again heaped criticism on NAFTA during a meeting with auto executives Friday at the White House. “NAFTA has been a horrible, horrible disaster for this country. And we’ll see if we can make it reasonable,” he said.

Trump has long criticized NAFTA, blaming it for the loss of millions of manufacturing jobs that hurt the U.S. economy.

The auto industry has featured prominently in the NAFTA talks, with one of the key sticking points being a U.S. demand to increase the U.S.-made components in vehicles that receive duty-free status in NAFTA.

Trump praised Fiat Chrysler chief Sergio Marchionne on Friday for plans to move production of its popular Dodge Ram truck back to the United States from Mexico.

“Right now, he’s my favorite man in the room,” Trump said.

Trump Administration Prescribes Remedy for Headache of High Drug Prices

America will not be “cheated” by foreign countries that “extort” unreasonably low drug prices from U.S. companies, declared President Donald Trump on Friday.

Rolling out an ambitious blueprint to significantly cut the cost of prescription medication here and abroad, Trump announced he is directing U.S. Trade Representative Robert Lighthizer to make it a priority to prevent foreign countries from forcing American drugmakers to provide medicines at drastically lower prices than in the United States.

“It’s time to end the global freeloading once and for all,” Trump said during a White House Rose Garden event.

Trump did not specifically name any countries, but according to a report from the White House Council of Economic Advisers profit margins on brand-name drugs in the United States are four times as high as in more regulated markets, such as major European countries and Japan.

Earning more profit in such countries presumably would give drugmakers greater maneuverability with their bottom line to charge less in America.   

In its annual report last month on the protection of intellectual property around the world, the Office of the U.S. Trade Representative, in addition to EU nations and Japan, also specifically criticized the drug pricing and reimbursement policies of Canada, India, South Korea and New Zealand. 

In his Rose Garden comments, Trump also singled out what he called greedy companies and middlemen, who he declared had grown rich through “dishonest double-dealing,” vowing his administration is now “putting American patients first.”

Trump’s plan has four main themes: increasing marketplace competition; empowering private health care plans to negotiate discounts for Medicare beneficiaries; providing new incentives for manufacturers to reduce the list prices of medications; and reducing out-of-pocket costs for patients. 

The president’s plan, however, breaks with one of his campaign promises, which was to authorize the purchasing clout of the federal government to negotiate directly with drug manufacturers for lower prices. 

“Instead of putting forth a bold initiative, the president pulled his punch,” said Nancy Pelosi, the leader of the opposition Democrats in the House of Representatives. “The president is breaking his promise to the American people to allow Medicare to negotiate lower drug prices, which would save seniors billions of dollars at the pharmacy.” 

Medicare is a federal health insurance program, covering 15 percent of the U.S. population, primarily those age 65 and older and certain younger people with disabilities. 

Pelosi is calling on Trump to work “with Democrats to offer real solutions for struggling families, not waste their time bragging about meager, window dressing (a superficial appearance) policies.”

Shortly after the Rose Garden event, Health and Human Services Secretary Alex Azar told reporters in the briefing room that much of Trump’s plan can be achieved without legislative action. 

“Most of this can be done by executive action,” Azar said, adding that “some of this will require regulatory action” that would take months, while restructuring the entire U.S. drug system would take years.  

Azar, a former chief executive of the giant Eli Lilly pharmaceutical company, where he raised drug prices, explained incentives need to be put into place to encourage the lowering of prices. 

“The entire system is actually built for increased prices and high prices,” he explained.

The Pharmaceutical Research and Manufacturers of America (PhRMA), which is the industry’s main lobbying organization, said some of Trump’s proposals could help make medicines more affordable for patients, but “others would disrupt coverage and limit patients’ access to innovative treatments.”

PhRMA President and Chief Executive Officer Stephen Ubl said in a statement the association “will be reviewing the request for information and look forward to participating in the comment process in the coming months.”

SpaceX Launches New Rocket Primed for Future Crewed Missions

An updated version of the SpaceX Falcon 9 rocket, tailored for eventual crewed missions into orbit, made its debut launch Friday from Florida’s Cape Canaveral, carrying a communications satellite for Bangladesh.

The newly minted Block-5 edition of the Falcon 9 — equipped with about 100 upgrades for greater power, safety and reusability than its Block-4 predecessor — lifted off at 4:14 p.m. EDT (2014 GMT) from the Kennedy Space Center.

Minutes later, the Block-5’s main-stage booster flew itself back to Earth to achieve a safe return landing on an unmanned platform vessel floating in the Pacific Ocean.

The recoverable booster for the Block-5 is designed to be reused at least 10 times with minimal refurbishment between flights, allowing more frequent launches at lower cost — a key to the SpaceX business model.

Enhanced rocket reusability also is a core tenet of SpaceX owner and billionaire entrepreneur Elon Musk’s broader objectives: making space travel commonplace and ultimately sending humans to Mars.

The flight came a day after the original launch countdown was halted one minute before blastoff time due to a technical problem detected by the rocket’s onboard computers. Friday’s second attempt by SpaceX, formally known as Space Exploration Technologies, appeared to have gone off without a hitch.

UK’s May, Trump Agree Talks Needed Over Iranian Sanctions

British Prime Minister Theresa May and U.S. President Donald Trump agreed in a phone call Friday that talks were needed to discuss how U.S sanctions on Iran would affect foreign companies operating in the country.

Trump’s decision to pull the United States out of the Iranian nuclear deal and revive U.S. economic sanctions has alarmed the leaders of Britain, France and Germany who remain committed to the deal and who have significant trade ties with Tehran.

“The prime minister raised the potential impact of U.S. sanctions on those firms which are currently conducting business in Iran,” her spokeswoman said. “They agreed for talks to take place between our teams.”

The spokeswoman said May had told Trump that Britain and its European partners remained “firmly committed” to ensuring the deal was upheld as the best way to prevent Iran from developing a nuclear weapon. Iran says its nuclear program is for peaceful purposes only.

The two leaders also condemned Iranian rocket attacks against Israeli forces earlier this week and strongly supported Israel’s right to defend itself.

“They agreed on the need for calm on all sides and on the importance of tackling Iran’s destabilizing activity in the region,” the spokeswoman said.

Minister: Mexico Refuses to Be Rushed Into Poor NAFTA Deal

Mexico will not be rushed into revamping the North American Free Trade Agreement (NAFTA) just to get a deal, Economy Minister Ildefonso Guajardo said on Friday ahead of trilateral talks with his U.S. and Canadian counterparts.

Guajardo said he would meet at 1 p.m. EDT (1700 GMT) with Canada’s Foreign Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer, and that the three are closer to agreeing new rules for autos that are vital for a deal.

However, Guajardo, who is eager to reach an agreement on all the principal aspects of a modernized NAFTA before sealing a new deal, said plenty of other issues were outstanding.

“I have to make very clear [that] the quality of the agreement and the balance of the agreement has to be maintained. So we are not going to sacrifice balance and quality for time,” he told reporters on the doorsteps of Lighthizer’s office.

“We believe there is a way to solve autos. I think we are trying to make a very good effort … We are looking at the whole set of items we have to solve. So it’s not autos, it’s everything else.”

Guajardo and Freeland have been meeting Lighthizer separately since the start of the week. Friday’s trilateral meeting will be the first held this week.

Drafting new rules of origin governing what percentage of a car needs to be built in the NAFTA region to avoid tariffs has been at the center of the talks to update the 1994 deal. It forms a key plank of the Trump administration’s aim to boost jobs and investment in the United States.

Officials and industry sources say the three sides have been gradually narrowing their differences on autos.

However, several other major issues are still unresolved, including U.S. demands for a five-year sunset clause that would allow NAFTA to expire, and elimination of settlement panels for trade disputes.

U.S. House Speaker Paul Ryan set a May 17 deadline to be notified of a new NAFTA to give the current Congress a chance of passing it. The United States will hold elections in November for a new Congress that will be seated early next year.

Mexico’s top trade official, however, said time was running short to meet such a deadline. Mexico will hold its presidential election on July 1.