Category Archives: Resource Based Economy

ROCHESTER, N.Y., Jan. 8, 2021 /PRNewswire/ --The latest Paychex | IHS Markit Small Business Employment Watch benchmark report reveals the effect of increasing COVID-19 cases on small businesses in the U.S. The Jobs Index shows a slowing of 0.24 percent in December to 94.06, a decrease of 4.18 percent from the year prior. A decline in weekly hours worked and hourly earnings growth decelerating to 2.63 percent brought national weekly earnings growth to 2.42 percent.

"The winter season brought a surge in COVID-19 cases and with it a retreat in jobs growth," said James Diffley, chief regional economist at IHS Markit.

"The new pandemic stimulus package has come at the right time for business owners. COVID-19 cases continue to grow and many state and local restrictions remain in place, limiting business activity in some communities," said Martin Mucci, Paychex president and CEO. "The second round of Paycheck Protection Program loans, simplified forgiveness for new and existing PPP loans, and an extension and expansion of the Employee Retention Tax Credit are all significant measures to help businesses weather the months ahead."

In further detail, the December report showed:

The complete results for December, including interactive charts detailing all data at a national, regional, state, metro, and industry level, are available at http://www.paychex.com/watch. Highlights are available below.

Note: Data presented for the month of December was collected between November 13, 2020 and December 17, 2020.

National Jobs Index

National Wage Report

Regional Jobs Index

Regional Wage Report

State Jobs Index

Note: Analysis is provided for the 20 largest states based on U.S. population.

State Wage Report

Note: Analysis is provided for the 20 largest states based on U.S. population.

Metropolitan Jobs Index

Note: Analysis is provided for the 20 largest metro areas based on U.S. population.

Metropolitan Wage Report

Note: Analysis is provided for the 20 largest metro areas based on U.S. population.

Industry Jobs Index

Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found here. The Other Services (excluding Public Administration) industry category includes religious, civic, and social organizations, as well as personal services, including automotive and household repair, salons, drycleaners, and other businesses.

Industry Wage Report

Note: Analysis is provided for seven major industry sectors. Definitions of each industry sector can be found here. The Other Services (excluding Public Administration) industry category includes religious, civic, and social organizations, as well as personal services, including automotive and household repair, salons, drycleaners, and other businesses.

For more information about the Paychex | IHS Markit Small Business Employment Watch, visit http://www.paychex.com/watch and sign up to receive monthly Employment Watch alerts.

*Information regarding the professions included in the industry data can be found at the Bureau of Labor Statistics website.

About the Paychex | IHS Markit Small Business Employment WatchThe Paychex | IHS Markit Small Business Employment Watch is released each month by Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small-to medium-sized businesses, and IHS Markit, a world leader in critical information, analytics, and expertise. Focused exclusively on small business, the monthly report offers analysis of national employment and wage trends, as well as examines regional, state, metro, and industry sector activity. Drawing from the payroll data of approximately 350,000 Paychex clients, this powerful tool delivers real-time insights into the small business trends driving the U.S. economy.

About PaychexPaychex, Inc. (NASDAQ:PAYX) is a leading provider of integrated human capital management solutions for payroll, benefits, human resources, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex served more than 680,000 payroll clients as of May 31, 2020 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.

About IHS Markit (www.ihsmarkit.com)IHS Markit (NYSE: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners 2021 IHS Markit Ltd. All rights reserved.

Media ContactsLisa FlemingPaychex, Inc. +1 585-387-6402 [emailprotected] @PaychexNews

Kate SmithIHS Markit+1 781-301-9311 [emailprotected]

Colleen Bennis Mower +1 585-389-1865 [emailprotected]

SOURCE Paychex, Inc.

http://www.paychex.com

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Increase in COVID-19 Cases Spur Decline in Small Business Jobs and Wage Growth - PRNewswire

LAST week, this column highlighted five key elements that will dictate global markets and of course these global economic factors, which are universal, will also have an impact on the local economy in general and more specifically, the financial markets.

Index wise, the FBM KLCI, which closed the year 2020 at 1,627.21 pts or up 2.4%, the first annual rise of the benchmark index in since 2017, is now estimated to have a fair value of 1,756 pts this year, based on brokers estimates.

Effectively, consensus fair value for the 30-stock index is pencilling a near 8% rise on the index from last years close.

So, what will impact markets and economy this year other than those five global factors mentioned last week? Provided below, three key elements that can dictate the local markets direction in the year 2021, summarized in the form of three Es.

The first E is for the Economy

Budget 2021, which was tabled in early November last year, was given the green light by Parliament last month.

The key in the budget measures are in actual fact related to governments commitment to raise development expenditure to RM69bil as well as to provide the right stimulus to the economy as Malaysia opens up in a post pandemic world.

At the same time, in March, the government is expected to table the 12th Malaysia Plan (12MP), which will shape the nations direction over the next five years and up to 2025.

This is perhaps the mid-term plan of the Shared Prosperity Vision (SPV) 2030 that was announced in late 2019 as Malaysia readies itself for the future.

There were many inspirational targets that were set in SPV 2030 but much of these would require funding.

As it is, the government needs to ensure that it stays the course in meeting key benchmarks, especially those related to debt/GDP, budget deficit and debt service ratios that the rating agencies are closely monitoring.

Hence, its ability to remain the economic catalyst during the 12MP will not be easy.

Going back to Budget 2021, the projected revenue and expenditure for the year is ambitious based on the assumed GDP growth of between 6.5% and 7.5%.

Any shortfall in revenue or higher than expected expenditure could make the governments financial ratios worse off and this would have dire consequences on our ratings.

After Fitch had downgraded us BBB+ last year, further deterioration in our fundamentals will leave the door wide open for the other two rating agencies to follow suit.

Nevertheless, the governments development expenditure should drive infrastructure spending and along with that the construction and related sectors should indirectly benefit from increase in business activities.

The second E is for Elections

Barring unforeseen circumstance, especially in relation to Covid-19 and based on the assumption that the virus will be back under control, Malaysia is set to go to the polls this year, two years ahead of the five-year term since the last general election.

Timing of the 15th General Election (GE15) is difficult to pinpoint at this moment but the clue will definitely be how we are able to tackle the spread of Covid-19.

The current fragile political landscape has indeed cost us dearly, as the nation has been stuck in this limbo for a while now.

As a result of the slim majority presently held by the government, the endless politicking has been the order of the day since GE14.

The issue with the Malaysian political system is that we are now in a very fragmented situation where coalition politics will be main feature of the political landscape and not based on a single party rule.

Hence, jostling of numbers or popularly known as the numbers game will remain the key.

As it is, as we are just one week into the year, Umno is already calling for GE15 to be held by Q1 this year, provided Covid-19 is contained, and voicing out its intention to contest all the seats that belong to the party.

As Umno has made known that the party will remain in the government only up to the time snap polls are called, this indirectly suggest that the coming GE15 will be a crowded affair with multi-cornered fights, especially in Malay-majority seats.

Lawmakers, despite having vested interest, should approve a proposal to make party hopping illegal in the eyes of the law.

The uncertainty has created an impact on Malaysias political standing among investors as Malaysia has always been seen as a nation with strong political stability.

Businesses require government of the day that is stable, visionary and consistent in its policies and not one that is watching is back, lacking in direction or worse, flip-flopping on policy matters.

Having said that, GE15 will nevertheless be a distraction for the market and until and unless the dust settles with a clear winner, the market will be adopting a wait-and-see attitude.

Should GE15 be called, the market will likely go through a corrective phase first as investors re-assess their risk exposure and await the outcome on what will be labelled as the battle royal between at least two and up to four formidable sides or coalition of parties.

The third E is for Earnings

Other than the steep rebound in earnings post the Asian Financial Crisis of 1998, corporate Malaysia is now forecasted to deliver a mind-boggling 43.4% growth in earnings this year.

This comes after a 17.8% drop in earnings for the year 2020, based on current estimates. This is not only driven due to the base effect but also to a certain extent, much higher commodity prices.

Brent oil closed the year 2020 at US$51.80 per barrel, down 22%, while crude palm oil, based on the benchmark third month forward contract, closed last year at RM3,600/MT, or up more than 18% y-o-y.

While the annual price change of these two commodities can be said to be mixed, what is amazing is how much prices had recovered from the 2020 lows.

Brent closed the year 2020 higher by 135% from the years low of about US$20/barrel while CPO gained as much as 85% from the low of just RM1,946/MT.

With economic momentum back, barring unforeseen circumstances on the spread of Covid-19, higher commodity prices will see our resource based companies doing much better in 2021 compared with last year.

The oil & gas sector as well as planters are expected to see renewed interest among investors as higher commodity prices will lead to brighter outlook, higher earnings and of course, better dividends.

The local stock market will also be dictated by global geopolitical events, in particular the US-China relationship during Bidens presidency.

In addition, how the covid-19 and vaccine rollout will playout, the impact of potentially stronger Dollar, higher interest rates as inflation is expected to return this year, will be the key to any change in expectations for 2021.

Nevertheless, pent up consumer demand and the post-pandemic consumer behavioural patterns are some of the positive factors that will drive economic and earnings momentum, while outcome of the GE15 could potentially be a wild card.

Hence, performance of the stock market in 2021 is dependent on how these 3Es play out over the next 356 days.

Pankaj C. Kumar is a long-time investment analyst. Views expressed here are his own.

Read more:

2021 is about the 3Es - The Star Online

COVID-19 is often linked to its impact on mobility and globalization. Stringent measures have been taken to contain the situation, which have constrained the movement of people and goods, nationally and internationally. The coronavirus pandemic has also accelerated previously existing geopolitical trends, especially regarding trade protectionism associated with, for example, medical equipment, pharmaceutical products and COVID-19 vaccine-related research. This, in turn, continues to feed a techno-nationalist zeitgeist as governments resort to export controls and sanctions in strategic sectors such as semiconductors and 5G networks and other so-called dual use technologies.

This environment has created an acute demand for new and innovative management tools and systems to support good corporate governance and risk management practices. Governments also need to apply new technologies and tools to better fight COVID-19 and facilitate trade.

The emerging solution to manage the challenges of both COVID-19 and techno-nationalism are coming from a burgeoning new field called TradeTech. The dynamics of the development in this field are captured in the new World Economic Forum report, Mapping TradeTech: Trade in the Fourth Industrial Revolution.

The trade of goods dropped dramatically in the second quarter of 2020.

Image: World Trade Organization

TradeTech leverages the internet of things (IoT), artificial intelligence (AI), 5G, cloud-based platforms and other Fourth Industrial Revolution technologies to unlock new possibilities and enable transparency and traceability in digital trade and global value chains.

The importance of digital trade has also been outlined in a 2019 paper published by the McKinsey Global Institute titled Globalization in transition: The future of trade and value chains. Services trade is on a trajectory to outperform global goods trade. The authors of the report write: In 2017, gross trade in services totaled $5.1 trillion, a figure dwarfed by the $17.3 trillion global goods trade. But trade in services has grown more than 60% faster than goods trade over the past decade.

Although differences between political and economic systems are on a trajectory of decoupling, and value chains are fragmenting around different standards and values which will present challenges to TradeTech there will still be many opportunities to turn this field in a significant growth industry.

Three areas, in particular, offer great promise for the future of TradeTech.

1. Expanding upon existing supply chain technology

Visibility and data-sharing are critical for 21st century supply chain and logistics management. They allow companies to drive efficiencies, resilience and customer satisfaction. The complete end-to-end data, paired with powerful analytics, also enables compliance in export controls, denied parties, restricted entity and data privacy regulations. Advanced technology provides the components to realize innovative TradeTech solutions to bring global commerce to a new level of performance and compliance.

Initiatives such as IATAs ONE Record in aviation, or the TradeLens data-sharing environment for container ocean shipping originating from the collaboration between Maersk and IBM are two initiatives intending to ease data-sharing and raise visibility. The maritime sector is also working on digital standards through the Digital Container Shipping Association (DCSA).

Global supply chains rightly and wrongly have been criticized for their vulnerability to shocks. While many argue that near-shoring is the solution, the reality proves that this is easier said than done. What is certain, however, is that a higher level of visibility is needed regarding the suppliers along the chain, their location, abilities and capacities, the progress of orders and levels of material stocks, as well as the location and condition of goods in transit.

Compliance risk can be mitigated through unique digital trade identities. In a digital world with limited travel, it is hard to know with whom we are dealing. Privately, a Google or Facebook identity can be used across multiple applications. But big businesses need to establish and maintain thousands of profiles, one for each application they wish to use. This comes at a heavy cost and not without risk. While we are lacking a neutral entity that issues standardized and recognized identities for businesses, more reliable product identity technologies have emerged. Start-ups like Evrythng and Santrust, for example, have developed immutable QR codes to ensure authenticity of products.

For some time, export software solutions have been helping companies and employees to increase efficiencies in document processing, execute export licensing and deal with denied parties lists. Compliance and performance traditionally go largely hand-in-hand and many older, well established software solutions will coalesce into new technology ecosystems.

The new constraints and risks such as trading restrictions caused by the COVID-19 pandemic and techno-nationalism create opportunities for start-ups and innovative companies. A buzzword in the FinTech industry is the term Reg-Tech. Major banks are investing in know your customer (KYC), regulatory, and onboarding technology to reduce risk and costs as part of the broader digital transformation agenda.

Blending Reg-Tech into the mix of TradeTech solutions minimizes the impact of regulatory scrutiny, while coping with the changes of procedures, laws and regulations. New export control-driven Reg-Tech involves work being done on microscopic tracking technology that can be placed inside the tiniest of sub-components and components, which then get subsumed within larger machines. These can be used to trace end use and end users of restricted technologies.

When sovereign interests and our own health is at risk, the stakes for private business are at the highest level. With the expanded use of TradeTech and Reg-Tech, the need for cyber security is also increasing, as the fight against cyber risk and cybercrime is fought with the most advanced and sophisticated cyber weapons.

3. Beneficial spillover from TradeTech to other sectors

Data analytics services cut across major parts of supply chain networks throughout the global economy. With their industry-agnostic solutions, data companies drive progress and innovation throughout the world. Specialized companies fill data gaps with their own or third-party sensors and analyze newly created data along with data that is stored in traditional systems like enterprise resource planning (ERP), transport management systems (TMS), and port community systems (PCS). These companies, such as Navis and FourKites are themselves innovators but they also create the foundations for others to innovate on, across all industries.

TradeTech allows for the better management of sites, partners and activities far away. Technologies like 3D-printing, robotics and the internet of things allow for a much more distributed way of manufacturing and operating. While holding the global economy together, they also distribute the grounds for innovation and growth. TradeTech at large is driving many new solutions, ranging from better measurement and reduction of carbon footprints, to enforcement of labour standards, to tools that help to realize the circular economy a model that fosters the reuse of products and materials to replace the take-make-waste approach.

The first global pandemic in more than 100 years, COVID-19 has spread throughout the world at an unprecedented speed. At the time of writing, 4.5 million cases have been confirmed and more than 300,000 people have died due to the virus.

As countries seek to recover, some of the more long-term economic, business, environmental, societal and technological challenges and opportunities are just beginning to become visible.

To help all stakeholders communities, governments, businesses and individuals understand the emerging risks and follow-on effects generated by the impact of the coronavirus pandemic, the World Economic Forum, in collaboration with Marsh and McLennan and Zurich Insurance Group, has launched its COVID-19 Risks Outlook: A Preliminary Mapping and its Implications - a companion for decision-makers, building on the Forums annual Global Risks Report.

Companies are invited to join the Forums work to help manage the identified emerging risks of COVID-19 across industries to shape a better future. Read the full COVID-19 Risks Outlook: A Preliminary Mapping and its Implications report here, and our impact story with further information.

A recent Gartner survey finds that 70% of supply chain leaders are planning to invest in the circular economy in the next 18 months. Already, 35% of companies believe that digital technology will be a key enabler for their circular economy strategies, but very few are leveraging existing technology for this purpose yet," says Sarah Watt, senior director analyst with the Gartner Supply Chain practice.

Sensors and satellite imagery combined with other technologies that provide additional data points can be used to trace carbon footprints, illicit discharge and water pollution, and enforce environmental standards for sustainably-caught seafood. Many of these same technologies can also be used to track controlled technologies, from an export controls perspective, throughout global value chains.

Techno-nationalism, accelerated by the COVID pandemic, has disrupted supply chains and global commerce. But the need to manage new risks brings additional pressure for innovation to the TradeTech field, which, in turn, has spawned new ecosystems of Fourth Industrial Revolution technologies and businesses. These solutions provide transparency and traceability in supply chains, which facilitate commerce; as well as offering small and medium-sized enterprises the possibility to better connect to the global marketplace.

Core elements of TradeTech are expanding into new areas, creating new ecosystems and spilling over into other sectors, and have become important drivers on the journey towards a more just and sustainable economy.

Continued here:

How COVID-19 accelerated the shift towards TradeTech - World Economic Forum

Global efforts

The determinants and risk factors behind COVID-19 and countless other communicable and non-communicable diseases lie well beyond the purview of the health sector alone [24]. Possible synergies between COVID-19, non-health sector, and NTDs prevention and control programmes were explored in a previous piece, stressing the need for well-defined programmes that will set the stage for a multi-sectorial approach [23].

Many countries failed to respond effectively to COVID-19, a fact that calls for a transformation of their surveillance and public health response systems in a post-COVID-19 world. Thus, investments in such systems should top the list of priorities of the major development and economic recovery initiatives. However, health services and integrated disease surveillance-response systems will need to undergo profound changes in order to find more effective ways of coping with future emerging and re-emerging diseases, epidemics, and pandemics. NTD control programmes should actively participate in defining innovative integrated surveillance-response systems, as they cannot afford to be left behind yet again [25].

According to the World Bank, the immediate priority for policy-makers should be to address the health crisis and contain the short-term economic damage [26]. Preserving the financial sector will be key towards promoting recovery as a well-functioning financial system can help firms stay alive and ultimately retain jobs. Sustaining economic activity is expected to free up funds to support the health system.

The World Bank committed early in the COVID-19 crisis to providing important additional financial resources for the worlds poorest countries. In a press release dated April 2, 2020 [27], the World Bank stated that it would be prepared to deploy up to USD 160 billion over the next 15months to help countries respond to the COVID-19 pandemic and support economic recovery. A USD 12 billion fast-track package (in the form of low interest loans and grants) was announced to strengthen the COVID-19 response in LMICs and shorten the time to recovery [28] (Figs. 2, 3). Strengthening health systems is among this initiatives top priorities. As part of this funding, interventions ranging from laboratory rehabilitation to equipping health centres with WASH infrastructure can be supported. Another World Bank effort is the Health Emergency Preparedness and Response Multi-Donor Fund (HEPRF). The objective of this umbrella funding scheme is to help countries develop strong public health capacity, including preparedness, disease surveillance, laboratory and diagnostic capacity, human resources, as well as emergency response operations [29]. The World Bank statement does not specify any amounts as it is waiting for pledges to be made by donor countries. Japan has already expressed its intention to become the founding donor of the new HEPRF [29].

World Bank Fast Track Package COVID-19 response per region. Thus far, USD 1.5 billion have been earmarked [27]

COVID-19 Global EU response per region. Current allocation of EUR 5.55 billion per region so far [31]

The United Nations Development Program (UNDP) leads the UNs socio-economic response to the COVID-19 pandemic [30]. For its work, the agency relies on a network of over 3100 partners. A total of 52 countries are contributors to UNDPs core budget in 2019. UNDP is working with over 50 governments across the world on Integrated National Financing Frameworks (INFFs) to align the COVID-19 response with the Sustainable Development Goals (SDGs). At the outset of the COVID-19 pandemic, in March 2020, UNDP presented a 3- to 6-month response budget of USD 500 million covering three thematic areas: (i) health systems support (USD 150 million); (ii) inclusive and integrated crisis management and response (USD 250 million); and (iii) social and economic impact needs assessment and response (USD 100 million). Whether donors and partners will live up to these expectations remains to be seen.

The European Union (EU) is the largest international donor, providing about 57% of the total global development assistance, while accounting for only a fifth of the global economy. The EU reacted swiftly to assist LMICs in their response to the COVID-19 pandemic [27], allocating EUR 15.6 billion with an emphasis on Africa (EUR 3.25 billion) (Fig.3). Three priority areas have been identified: (i) emergency response; (ii) research, health, and water systems to combat the spread of coronavirus; and (iii) addressing the socio-economic consequences of the COVID-19 crisis, including, in the longer-term, support for a recovery phase [31].

Team Europe is another EU response to COVID-19 supporting the most vulnerable and fragile populations in LMICs and conflict zones [32]. It targets primarily the informal sector of society, with a focus on Africa. Together, the European Commission, the European External Action Service, EU Member States, and financial institutions are launching a EUR 20 billion package to combat the COVID-19 pandemic and its consequences. The package combines resources from existing programmes (EUR 11 billion) with support from financial institutions such as the European Investment Bank and the European Bank for Reconstruction and Development (EUR 5 billion), and from EU Member States (EUR 4 billion).

The Asian Development Bank (ADB) announced a USD 20 billion package (in the form of loans, grants, and technical assistance) to address the needs of its LMIC members as they respond to COVID-19 [33]. Thus far, approximately USD 4.6 billion have been earmarked. Priorities include health and economic measures ranging from strengthening governments alert and response capacities to addressing the COVID-19 pandemics economic and financial impact, and supporting various government measures targeted at poor people and vulnerable groups affected by COVID-19 through the loss of jobs and out-of-pocket health care expenditures. Eleven countries have already benefitted: Indonesia, the Philippines, and India are targeted to receive USD 1.5 billion each in sovereign projects [33].

The Asian Infrastructure Investment Bank (AIIB), of which the Peoples Republic of China is the largest shareholder, created a USD 5 billion crisis recovery fund to support countries and businesses during the COVID-19 pandemic. With a recent capital injection, this programme can be tailored to respond to local needs [34].

Other initiatives are considerably smaller but nevertheless relevant. A case in point is the European Institute of Innovation and Technology (EIT). It will make available EUR 60 million for entrepreneurs under the EIT Crisis Response Initiative to support 44 countries (Israel, Turkey, and 42 EU and Non-EU European countries) [35] in the launch of new innovation projects to tackle COVID-19 related challenges. A total of EUR 9.85 million are earmarked for health.

The Center for Global Development recently published an analysis on how international development agencies are responding to the COVID-19 crisis [14]. Included in the analysis is a WHO appeal for an estimated USD 675 million for a COVID-19 Preparedness and Response Plan, which saw donors pledge and commitment of around USD 320 million to date. The WHO also tracks partner funding and has already identified EUR 7.4 billion earmarked for COVID-19 response funding from 79 donors [36].

Development agencies are molding their aid packages according to their Governments priorities. The German Federal Ministry for Economic Cooperation and Development (BMZ) is funding a EUR 1 billion emergency COVID-19 support programme targeting seven areas, with health and pandemic control heading the list (EUR 200 million) [37].

The speed and scale of the response required by the COVID-19 pandemic highlighted how the fragmentation in current health systems significantly impaired our ability to respond effectively in times of crises. Fragmentation leads to duplication, inefficiencies, poorer outcomes, and an unsatisfactory experience of care. There is growing evidence that integration of services in the health system and across sectors increases the resilience of systems [38, 39]. Until recently, integration efforts have tended to focus on improving coordination between primary and secondary care, or on strengthening relationships between health and social services. It is now widely recognized that social determinants, such as housing, education, employment, and social connectedness have a greater impact on health and well-being than health and care services [40]. The focus is starting to shift towards integrating health and care with a much broader range of services, rooted in communities strengths, and needs. This is known as integrated community care (ICC). The importance of ICC is reflected in the WHOs vision for primary health care that is based on three pillars: (i) an integrated health service delivery system; (ii) active community participation; and (iii) actions addressing broader social determinants of health [41].

The evidence shows integration works best when aimed at people with severe, complex, and long-term needs [42, 43]. It offers a new opportunity for managing morbidity and long term disabilities in the community, through greater coordination between health, social and community care. This is something that has not yet gained wide attention from the NTD community, and yet it may be worth exploring through further research. Perhaps even mass drug administration (MDA) campaigns related to some NTDs would benefit from integration with other activities beyond drug delivery [44]. Disease control programmes are part of complex health systems [45] and as such creating parallel funding, planning cycles, and additional reporting and data information systems need to be avoided [46].

ICC as a way to strengthen health systems and achieve Universal Health Coverage (UHC) would arguably make countries more resilient to shocks such as COVID-19, but whether these initiatives garner sufficient support from the main stakeholders and decision makers remains to be seen. This is particularly relevant in resource-constrained settings, which also harbour the very same highly vulnerable population groups most affected by NTDs [47]. NTDs may impose a considerable economic and social burden on individuals, families, and households, often related to loss of productivity but also abandonment of agricultural land due to morbidity, disability, and stigma [48, 49]. In addition, there are the direct costs of diagnosis and treatment and, even if diagnostics, drugs, and vaccines are offered free of charge, direct nonmedical costs such as transportation and accommodation which can easily add up to 20% of annual household income, propelling a previously stable household into an untenable debt [48]. It is ultimately the decision of the governments of endemic countries to make UHC including NTDs a domestic policy priority. To be effective, NTD control needs to be part of the national health plans and budgets and, ideally, also feature in those of other sectors [50].

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Efforts to mitigate the economic impact of the COVID-19 pandemic: potential entry points for neglected tropical diseases - Infectious Diseases of...

Football brought me from the streets of Washington, D.C. to Minnesota and Iowa in the late 1960s. I often say it saved my life to get away from a life of petty crimes and into a position where I could begin learning how I could make a difference in the world. I worked hard to graduate from Rochester Junior College in 1971 and from Drake University in 1974 with a Bachelor of Arts degree in Education.

Shortly after graduating, I organized my first presidential forum in 1976, and Mary Campos and I formed the Black and Brown Presidential Forum in 1984 to highlight issues of race and the challenges black and brown people face with the economy, educational opportunities, criminal justice and access to health care. The Black and Brown Forum is the oldest minority presidential forum in the country, and we were excited to host president-elect Joe Biden, vice president-elect Kamala Harris as well as a host of other candidates in 2020.

I also started a nonprofit called Urban Dreams in 1985 and ran for the Iowa Legislature in 1996. I served in the Iowa House until 2010. I was the 10th black legislator to serve in Iowa.

While serving in the Legislature, I met a small-town lawyer who served in the Iowa Senate named Tom Vilsack. From the outside, most people would think we had little in common. But, we both were serving in the Iowa Legislature, we were both Iowans by choice rather than by birth, and we both loved playing football. And, because Tom Vilsack grew up in the city of Pittsburgh, we both had a different perspective on race than most of our colleagues in the Iowa Legislature.

Our shared experiences and shared values started a lasting friendship that continues today. In 1998, I was an early supporter of his campaign for governor of Iowa and helped with his campaign.

Tom Vilsack won in a huge upset in 1998. As governor, we maintained a close relationship. We spoke at length about the problems of significantly higher incarceration rates for people of color than whites in the Iowa penal system. In 1999, he asked me to colead the Governors Task Force on Overrepresentation of Blacks in Prison.

That task force found that 24 percent of the states prison population in 1999 was African American although blacks comprised just over 2 percent of Iowas population. The numbers were stunning. One of the recommendations from the task force was that the state should modify sentencing policies as they pertain to drug offenses and mandatory sentencing. That recommendation resonated with me and was one of the tenets for the Iowa minority impact legislation I authored in 2008. Iowa was the first state in the nation to pass this historic legislation. Gov. Chet Culver signed that bill.

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When Tom and I served together, I witnessed him pass an executive order restoring a felons right to vote. He directed state governmental agencies to aggressively participate in Iowas Targeted Small Business Program and set an expectation for department leaders to achieve their goals for procurement activities and compliance. This expectation still exists today. He initiated a task force, including myself, to establish the Iowa Principles and Practices for Charitable Nonprofit Excellence that continues to serve as a blueprint for the successful governance of nonprofits today. We worked together to pass legislation that required children to be tested for exposure to lead paint before enrollment in school.

An example of his successes as U.S. agriculture secretary that pertains to urban communities is Vilsacks USDA Urban Agriculture Toolkit that he assembled to provide a comprehensive resource for producers to effectively manage their businesses. This was an innovative approach to providing assistance and growth in urban communities.

When Tom Vilsack was elected governor, I was the only black legislator. We worked closely for eight years and collaborated on numerous legislative initiatives to positively impact the lives of minorities and low-income communities. These policies continue to enhance the lives of marginalized individuals today. Based on my close working relationship with Vilsack, and my friendship with him, I know that he will once again be an excellent secretary of agriculture.

Wayne Ford is a former state legislator and the principal of Wayne Ford and Associates in Des Moines.

Wayne Ford

Read more:

Vilsack is a longtime ally to people of color - The Gazette

This piece looks ahead to what we might expect as IT law develops in 2021.

2020: an extraordinary year of IT transformation at scale, pace and depth

At last, we can see 2020 through the rear view mirror. A year like no other within living memory, its impact on transformation in the world of IT is huge. It can be summarised in three words: Scale, Pace, Depth.

The digital economy is consuming the old economy said a former CEO of HSBC recently, neatly if graphically articulating the scale of change.[i] 2020s tech celeration and great shove online have compressed into months changes previously anticipated in years. And headlines in early December 2020 illustrate how the depth of these changes will impact all our lives:

The high street

Retail and the UK high street remained the place where these changes were most visible in 2020. The chart below[viii] shows how internet sales as a percentage of total retail sales inclined relatively gently upwards from 3% in 2006 to 20% in 2019, but then raced ahead to 30% in early 2020. The list of well-known UK retailers that went into liquidation or administration in 2020 as a result is likely to lengthen in 2021.

UK Internet sales as a percentage of total UK retail sales (Source: ONS)

Brexit and digital trade

So now we know what Brexit means Brexit means. Having ridden up six floors in the elevator of European economic integration, we finally got out at level 2, where we last were in 1960: tariff-free trade in UK- and EU- originating goods, bolted on to the WTOs basic principles of non-discrimination and equal treatment (see graphic).[ix]

Brexit means Brexit means getting out at Level 2

Decembers 1,246 page EU/UK Trade and Cooperation Agreement (TCA)[x] adds to this a number of high level terms on services plus commitments to negotiate. These include seven pages aiming to facilitate digital trade, to address unjustified barriers to trade enabled by electronic means and to ensure an open, secure and trustworthy online environment.[xi] The Government has called these out as some of the most liberalising and modern digital trade provisions in the world and the first time the EU has agreed provisions on data in a free trade agreement.[xii]

Brexit and data protection

As an example of the contortions that may lie ahead, many businesses are likely to end up with dual data protection compliance requirements. During the transition period, the GDPR continued to apply in the UK pretty much as before and the TCA defers the UK from being considered a third country for GDPR purposes until 30 June 2021 or (if earlier) when the EU makes an adequacy decision for the UK.[xiii] We will be keenly awaiting the outcome of the Commissions adequacy review.

However, as well needing to comply with UK GDPR, a UK business will also be subject to EU GDPR if it offers goods or services to data subjects in the EU, monitors their behaviour or has an EU establishment. Whilst divergence is unlikely to be material early on, room for inconsistency and conflict between UK GDPR and EU GDPR will grow over time.

If not reviewed before, the main areas affected that will need attention in 2021 are international data transfers, appointment of EU representatives and regulatory oversight for cross-border processing. The fall-out from the ECJ judgment in Schrems II (which struck down the US Privacy Shield arrangements with the EU)[xiv] and ongoing clarification in Brussels of points of EU GDPR detail are also likely to make this a volatile area of law for UK practitioners for a while.

At the global level, the data protection compliance picture is further complicated in 2021 as more states embed their own GDPR-type laws and rules. These include Brazil (September 2020); California (California Consumer Privacy Act: January 2020, California Privacy Rights Act: from January 2022); Canada (bill introduced November 2020); China (draft published October 2020); and South Africa (June 2021).

All the clouds a stage

IT transformation will continue to get star billing this year, and the main players are evident as we head into 2021. The cloud sets the stage where digital transformation plays out. In the world of everything as a service, efficient use of cloud resources is a pre-requisite to good performances from the rest of the 4th Industrial Revolution cast. Here, AI, 5G, blockchain, process automation, autonomous devices (robots, drones and vehicles), and virtual (aka augmented or extended) reality will be taking up the most important roles in 2021.

Towards the digital supply chain

Against this backdrop, transformation is taking place in different ways across different sectors, but emerging common features across industry include digital twinning, the development of secure digital supply chains and effective end to end governance and management of data and algorithms.

By way of example, the Air Transport Industry (ATI) has faced unprecedented challenges in 2020, from changing traffic patterns, through space and resource re-utilisation, to the green airport and greener ways to fly.

The ATI depends on a complex supply chain of layered, co-ordinated and structured processes, events and interactions from multiple entities including air traffic control, aircraft (in flight, landing, at stand and take-off), airports (departure and arrival), cargo, passengers and ticket distribution.

All these processes, events and interactions, or rather their digital twins, generate vast amounts of digital data. All the actors in the ATI supply chain are reliant on the availability and accuracy of this data: they all need the right data at the right time to perform their role. Viewed through the lens of data, the ATI supply chain becomes data points, data flows and data sharing based on common architectures, and permissioning within and between entities and ecosystems. Rules can be set through smart contracts, blockchain and standards to determine how these processes, events and interactions take place, and the value of data (as an asset) and its risk (as a liability) as it moves through the system.

Each process, event and interaction in the digital supply chain must comply with applicable legal requirements as critical infrastructure for example, and for cybersecurity, data protection, specific ATI regulation and data contracting and licensing.

The ATI is just one example of representing an industry through a data-centric lens which IT lawyers will see much more of in 2021.

Tech regulation: intermediary immunities and competition law

To the keywords of scale, pace and depth we might add regulation. With significant legislation in the works in Brussels and London, 2021 will be a seminal year for digital regulation, as well pointing the direction that regulatory divergence will take both between the UK and the EU, and between Europe and the US.

Longstanding intermediary immunities and safe harbours from liability are increasingly under challenge around the world as governments seek to deputise intermediaries to assist in law enforcement.[xv] These immunities arise in the EU under the E-Commerce Directive,[xvi] which the EU Commission is proposing to overhaul through the two pillars of its Digital Services Act package.[xvii] The first pillar will set out new rules on responsibilities of digital services providers towards their users, and the second will implement new rules on competition.

For the first pillar, the UK government stated in October 2020 that it had no current plans to change the UKs intermediary liability regime or its approach to prohibition on general monitoring requirements,[xviii] indicating that intermediary liability rules in the UK will diverge over time from those in the EU. On the second pillar, 2021 is scheduled to see UK legislative action around a new regulatory regime for online platforms and digital advertising, with responsibility shared between the new Digital Markets Unit of the Competition and Markets Authority, the Information Commissioners Office and Ofcom.[xix]

Regulating the distributed web

A feature of 2021 will be the rise of the distributed web, based on open source frameworks for publishing lightweight, peer to peer applications and decentralised data storage (like Holochain), encrypted identity verification (like Keybase) and third party service integration (like Electron). The distributed web heralds a move away from the centralised platforms of web 2.0 and towards a more user-centric, self-sovereign internet. But this new web world where theres no canonical single version of the truth as the data is stored on each users device may make the role of publishers and app developers more challenging in terms of intermediary liability, where the rules are set to tighten and effective notice and take down may no longer be in their gift. As ever, regulation struggles somewhat to keep up with the tech.

Telecoms regulation: OTT and the EECC

How the tides of tech regulation can catch business unawares is shown by the reach of the new European Electronic Communications Code (EECC).[xx] The EECC came into force on 21 December 2020, with the UK deferring certain provisions for a number of months. As part of a series of measures that replaces the 2002 EU telecoms regulatory package, it sets out general authorisation conditions for telecoms services. Under the old rules,[xxi] over the top (OTT) services calls and messages over the internet were outside the reach of telecoms law as they werent considered to be regulated electronic communications services (ECS). Brussels changed this in the EECC, where most OTT services now fall inside the definition of ECS and, if public ECS (essentially, where anyone can sign up), are subject to certain rules protecting users that the EECC imposes. However, note that the UK has not yet implemented the EECC fully in relation to OTT.

As public ECS, OTT services will also need to comply with the communications confidentiality, traffic data and location data rules in the (old) ePrivacy Directive (ePD),[xxii] which is due to be replaced in the EU by the ePrivacy Regulation (ePR) when agreed, likely in 2021. Of course, as the ePR wont apply in the UK and how the UK will deal with e-Privacy in 2021 isnt yet clear. The EECC, ePD and ePR rules are separate from the GDPR and other (largely EU-based) laws protecting consumers online, where the rule books are also lengthening.

With added dimension provided by Brexit, its a racing certainty that the scale, pace and depth of IT and regulatory change we have seen in 2020 will accelerate as we head into 2021.

Continue reading here:

Trends in information technology law: looking ahead to 2021 - Lexology

Vials of AstraZeneca's COVISHIELD, coronavirus disease (COVID-19) vaccine, are seen before they are packaged inside a lab at Serum Institute of India, Pune, India Image Credit: Reuters

If 2020 will be remembered as the year of the Covid-19 pandemic, 2021 should rightfully be regarded the year of the vaccine. After multiple human trials in various parts of the world, we are already in the process of witnessing a roll-out of the anti-Covid19 vaccine in different parts of the world.

In India, two vaccines have been approved already, the Oxford Institutes Covishield, manufactured by the Serum Institute, and the indigenously developed Bharat Biotechs Covaxin. More are in the pipeline.

Does this mean that we have conquered the pandemic? The human species with its great survival instinct, persistence against odds, and scientific ingenuity has once again demonstrably triumphed over a serious global medical and health emergency.

Incredible examples of heroism, dedication, research and scientific cooperation have combined with collective political will to overcome the great dangers posed by the pandemic. But the real question is what have we learnt? Will the new normal be more or less same as the old normal? What of the warning signs on the horizon as we try to limp back to some semblance of life as we know it in the new year?

One unforeseen and not too desirable outcome of the pandemic is the issue of disenchantment with democracy. Large and unruly democracies with diverse populations, such as United States and India certainly have the highest caseloads. Even smaller states such as UK, France, Germany and Spain, with their elected governments, have also had huge waves of infection sweeping through their populations.

China on the other hand, where the virus originated in the first place, has reported very few infections and deaths.

Politically and culturally attractive

Despite their apparent chaos and internal conflicts, democracies remain attractive both politically and culturally. The pandemic has shown that people would rather be free, even if that poses a greater risk than dying by disease.

Going by the Morning Consult approval ratings of world leaders, Indias Prime Minister Narendra Modi, with 53% tops the chart of 13 leaders of the free world. Even with French President Emmanuel Macron coming last at number 13, with a negative rating of -25%, it is not likely that the French would prefer to be governed by a single party.

What is clear, in other words, is that free and disciplined societies such as Sweden, Norway, and Demark in Europe; Japan, South Korea and Taiwan in Asia; Australia and New Zealand in the antipodes down under; and smaller well-managed states such as the UAE or Singapore have fared the best.

A self-disciplined an orderly populace does not require heavy-handed governmentality to keep its citizenry in check. The lesson of the pandemic is that a combination of freedom and orderliness is our best bet against a crisis of such magnitude.

However, one of the post-pandemic red flags that humanity faces is growing inequality. This is not just between the rich and poor but also between technological haves and have-nots. The digital divide is going to be much more important in the months ahead perhaps than even the economic divide.

New class of emergent poor

This applies both within countries and cultures as well as across the globe. There is, it would seem, a new class of emergent poor. Badly hit by Covid19 with wage losses, shrinking incomes, and less access to life saving health care, it is on the brink of a catastrophic reduction in the quality of life.

Among the affluent, too, the divide is between the naturally healthy, with better genes and lifestyles, and those highly stressed and suffering from several comorbities. Money, and even the best medical facilities, have not been able to save them.

A better life, it seems, is one where stress and consumption are well-regulated and balanced. Moderation, not excess or deprivation, is the key to the good life, as it is also to longevity.

Our ability to fight off infections, it is increasingly obvious, is based on our own immunity, which is directly related to our mental state and not just the physical well being. In the year head we may therefore expect greater attention and investment in holistic well-being, authentic and high-quality experiences, rather than fragmentary and piecemeal luxury goods or indulgences.

Finally, the global economy will shift even more from resource and commodities-based wealth to digital innovation and value addition. This poses a challenge not just to governments but to experts and professionals. Only those who can reinvent themselves to learn and grow will survive in the future.

Indeed, of all commodities and resources, knowledge, information, and research will be the most precious. Therefore, in addition to alleviating poverty and inequality, nations who invest in human excellence and capacity building will do well. More and more, it will be clear that the collective good cannot be enhanced or promoted without stimulating and incentivising individual talent and creativity.

Originally posted here:

Looking ahead 2021: The year of Vaccine | Op-eds Gulf News - Gulf News

Ive been legally blind since elementary school, and lost all functional vision by my early thirties. My mother didnt want me to go to a school for the blind, and was determined to keep me in the public school system: I used the low-vision technologies available at the time, as well as learning how to walk with a cane and read braille.

I describe losing my sight as an inconvenience, nothing more! Im married, Im a father to three children, Ive competed in martial arts, I ski, climb mountains and Ive had a successful 20-year career in the tech industry.

People with disabilities are the greatest untapped resource on the planet: we are the perfect candidates for what I call desk jockey type jobs: todays technology is so accessible, and people with disabilities are extremely productive and loyal employees. In some ways, they are more productive than sighted people. For example, some blind people can listen to their screen readers at 300 words a minute. That is faster that a sighted person can consume the same amount of data, looking at a screen.

Lets face it, big companies dont hire a person with a disability because its a feel-good story. They hire them because they are going to work twice as hard and they are not going to job-hop. They hire them because they know that they are going to deliver.

Unsplash/Sigmund

Technology has opened up new work opportunities for the visually impaired.

There are now tremendous opportunities for gainful employment for persons with disabilities, particularly since the Americans with Disability Act (ADA) came into force. This has helped to bring more persons with disabilities into the workforce, thanks to access ramps to buildings, braille in elevators and accessibility technology built into popular operating systems.

Im committed to reducing the high unemployment rate among skilled blind and visually impaired IT and tech professionals, and this starts with changing the perceptions of potential employers. Thats why I started the Blind Institute of Technology (BIT). Were based in Colorado, and we help those with disabilities, particularly the blind and visually impaired, to find work, through education and placements.

My job is to go out there, kick in doors and let employers know just how easy it is to seamlessly integrate people with disabilities and add value to the bottom line and the corporate culture.

The better we are at getting people with disabilities into the workforce, the more the economy benefits. I call it the "Billion Dollar Initiative". A blind person over their working lifetime in the United States will consume about a million dollars in public assistance, including disability benefits, food stamps and housing benefits.

If we can get a thousand people with disabilities out of that system and into work, that is around a billion dollars saved in public assistance, and nearly one hundred million dollars of earned income generated every year through employment.

Unsplash/Dylan Gillis

Mike Hess established the Blind Institute of Technology in the United States to change perceptions of potential employers.

Im a glass half full person, but when the COVID-19 pandemic hit, I had to ask myself if a small non-profit like ours could survive, as most of revenue comes from placing people with companies.

In fact, weve thrived throughout 2020. Things started to turn around in April, when Salesforce, through its Office of Accessibility, offered us a 50,000 dollar grant. After that we received more grants from foundations, and another from Adobe.

I promised the donors that I would use all the money to supplement wages for our students, whose education is geared towards a career. We tell them that we have grant money, we have passionate students, and they need work experience. This is helping us to have more conversations with more companies.

The fact that so many people are working for home, because of the pandemic, is also an unexpected bonus: for many persons with disabilities, and not just blind and visually impaired people, getting to and from the office is a challenge, and many do not have access to public transport. For now, this problem has gone away.

Its true that opportunities for social interaction are more limited now but, even in "normal" times, persons with disabilities are often isolated. To counter this, were organizing virtual mentoring in school districts for young people, to let them know theres a support network out there, and to remind them that resilience is a muscle, that we can exercise together.

Original post:

First Person: 'people with disabilities are the greatest untapped resource on the planet' - UN News

COVID-19 has further exposed the failures of a linear take-make-waste use of the worlds resources, and highlighted the need for a more circular reduce-redesign-reuse approach, according to a new study.

A group of researchers led by the UKs University of Warwick concluded that a circular economy could help the world recover from the pandemic, while also helping nations reach net-zero carbon emissions goals.

All industries can and should adopt a circular economy, says Dr Taofeeq Ibn-Mohammed, assistant professor in the Warwick Manufacturing Group (WMG), with strategies adapted to each sector.

The global population is expected to reach close to 9 billion people by 2030 inclusive of 3 billion new middle-class consumers.This places unprecedented pressure on natural resources to meet future consumer demand.

A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals and aims for the elimination of waste through the superior design of materials, products, systems and business models.

Nothing that is made in a circular economy becomes waste, moving away from our current linear take-make-dispose economy. The circular economys potential for innovation, job creation and economic development is huge: estimates indicate a trillion-dollar opportunity.

The World Economic Forum has collaborated with the Ellen MacArthur Foundation for a number of years to accelerate the Circular Economy transition through Project MainStream - a CEO-led initiative that helps to scale business driven circular economy innovations.

Join our project, part of the World Economic Forums Shaping the Future of Environment and Natural Resource Security System Initiative, by contacting us to become a member or partner.

More resource-efficient construction

In construction, for example, retrofitting, refurbishing or repairing existing buildings leads to lower emission facilities, is less resource-intensive and more cost-effective than demolition and new construction.

Digital infrastructure technologies such as thermographic and infrared surveys, 3D laser scanning and digital twinning creating virtual models of processes, products or services will play a crucial role in ensuring the low carbon and energy-efficient future of the built environment, the authors say.

Less wasteful food sector

Circular economy strategies could help create a more sustainable and secure food sector.

These include regenerative agriculture approaches such as using food waste to replenish nutrients in the soil. Anaerobic digestion can be used to create biogas from organic nutrients. Urban agriculture cultivating crops and animals for food in and around cities is another circular opportunity.

The authors cite the increased popularity of local farms as a direct consequence of COVID-19, suggesting that people could experience the power of local food cycles and avoid perceived contamination risks in supermarkets.

Companies can boost their resilience against future pandemics like COVID-19 by using disruptive digital technologies or smart manufacturing tools.

Big data analytics, for example, can help companies streamline their supplier selection processes. Cloud-computing is currently being used to facilitate and manage supplier relationships. And logistics and shipping processes can be greatly enhanced through automation and the internet of things the world of connected devices.

The Warwick team urges 'circular thinking' that targets the general well-being of the populace instead of a focus on boosting the competitiveness, profitability or growth of businesses and national economies.

The Ellen MacArthur Foundation recently set out 10 circular investment opportunities across five key sectors.

Image: Ellen MacArthur Foundation

10 circular investment opportunities

The World Economic Forum is a supporter of The Ellen MacArthur Foundation, which works to accelerate the worlds transition to a circular economy. The foundation recently set out 10 circular investment opportunities across five key sectors: the built environment, fashion, plastic packaging, food and mobility.

In an unprecedented response to the COVID-19 crisis, trillions in economic stimulus have been made available around the world, the foundation says, pointing out that this moment in time is a rare opportunity to build a resilient and low-carbon recovery. The circular economy, as an instrument to decouple economic growth from resource use and environmental impact, opens up the way for a resilient recovery.

The Netherlands, Germany, Sweden, Scotland, Denmark and Finland are among the nations pushing forward circular economy agendas.

For example, the Netherlands has a government-wide programme to achieve a circular Dutch economy by 2050.

Denmark is investing 16 million ($19 million) across 15 initiatives as part of a national circular economy strategy.

Scotland also has a circular economy strategy and already employs more than 200,000 people 8.1% of jobs in circular economy-related roles.

More than 40 countries, companies and international organizations work together to accelerate the transition to a circular economy as members of the Platform for Accelerating the Circular Economy (PACE).

Launched in 2017 by the World Economic Forum, the PACE community consists of 80 public, private, international and civil society executive leaders and more than 200 members championing 18 projects across the globe.

The World Economic Forum has created the Scale360 Playbook to build lasting ecosystems for the circular economy and help solutions scale.

Scale360 Playbook Journey

Image: Scale360 Playbook

Its unique hub-based approach - launched this September - is designed to prioritize circular innovation while fostering communities that allow innovators from around the world to share ideas and solutions. Emerging innovators from around the world can connect and work together ideas and solutions through the UpLink, the Forum's open innovation platform.

Discover how the Scale360 Playbook can drive circular innovation in your community.

Excerpt from:

Cutting waste and going 'circular' could help economies out of COVID slump - World Economic Forum

Chemicals are present in 95 percent of manufactured goods, from simple everyday items to hi-tech applications. From wind turbines to electric vehicles, the chemical industry plays a crucial role in producing technologies and solutions to create a carbon-neutral, resource-efficient and circular society.

In its eight-point Mid Century Vision for the Future of Europe, Cefic presents a view in which the European economy has gone circular, recycling molecules into new materials. Transitioning toward a circular economy can contribute to addressing our global resource challenge, reduce greenhouse gas emissions through better use and reuse of the materials that already exist in the economy, reduce environmental littering, create new meaningful jobs and spur economic growth. The European chemical industry sees itself at the center of the transition and of Europes circular economy. Going more circular means contributing to meeting the Paris Agreement and the broader U.N. 2030 Sustainability Development Goals. We therefore support the European Green Deal and Europes ambition to become climate neutral by 2050.

The European chemical industry sees itself at the center of the transition and of Europes circular economy.

Circular solutions should have an overall positive impact on the environment over their full life cycle. The sector offers solutions to keep materials in the loop as long as technically and economically possible through reuse of materials, extension of lifetime using more durable materials, resource recovery and different types of waste recycling technologies. Additionally, we are increasing the share of alternative feedstock such as CO2/CO through carbon capture and use, and bio-based feedstock. By using more waste-, bio- and CO2-based feedstock and the technologies to efficiently transform them into everyday products, the chemical industry actively supports the bio-based economy.

To meet the ambitious European Green Deal objectives, much more plastic waste needs to be recycled and a broader range of markets needs to be served with recycled content. Of the 30 million tons of end-of-life plastics collected in Europe each year, today 5 million tons make it back into marketable products. The rest is either incinerated, landfilled or exported for recycling. And it is with the rest that we the chemical industry can make the difference. Our innovations contribute to all forms of recycling: mechanical, chemical and organic. We already offer products which increase the performance of mechanically-recycled plastic and are now enabling better tracking and tracing of plastic waste streams. Compostable plastics have a role to play as well, for example when they are used for collection of biowaste. Chemical recycling complements the existing options and its potential to handle plastic waste is huge. Chemical recycling technologies allow use of plastic waste as feedstock to produce new chemicals and plastics. The quality of this kind of plastic is equivalent to those produced from virgin resources, allowing use in higher volumes and in high-quality applications such as food contact and food packaging. Chemical recycling technologies can also help cleaning material cycles as they have the potential to remove legacy chemicals.

To meet the ambitious European Green Deal objectives, much more plastic waste needs to be recycled and a broader range of markets needs to be served with recycled content.

Chemical recycling is not yet a widely deployed option for the recycling of plastic waste. Scale-up requires innovation, harmonized policies, recycling chains and clear pathways to valorize plastic waste that is currently incinerated, landfilled or wasted. The involvement of the entire value chain and a transnational policy framework is key in this respect.

Other examples where the chemical industry plays an important role in the transition to a circular economy include: the use of metals of recycled batteries to produce battery materials offering significant CO2 reduction in the production of electric vehicles; the recycling of wind turbines coming to their end of life; and industrial symbiosis where significant resource savings can be made because of an integrated production approach.

In the transition phase, the chemical industry will gradually have to increase its share of alternative, more sustainable feedstocks. In the beginning, these will only make up a small share of the overall amount of materials processed in our plants. We therefore need to apply mass balance concepts to allocate more sustainable feedstock to final products like renewable electricity is allocated to the consumer willing to pay for a more environmentally friendly option. This approach is a key enabler to allow Europe to develop new circular models.

Chemical recycling technologies allow use of plastic waste as feedstock to produce new chemicals and plastics.

Cefic and its members are ready to take a leading role in accelerating the transition. To be successful in its mission, cooperation on all levels in society is necessary. If Europes many industries and companies are truly enabled to deliver on their innovation strengths such as chemical recycling and are enabled to bring these to the market, we will jointly convert opportunity into success. We are keen to work with European policymakers and governments to have the right framework conditions in place that keep our competitiveness during this transition in clear focus. And governments and industry need to prioritize investments as we cannot have it all.

With the Green Deal and the European Recovery plan, a fund the size of the Marshall plan, funding will be available to support the transition to a climate-neutral, resource-efficient and circular economy. So, the question should not be whether the transition to a circular economy is possible, but how can we do this together, as the money and the necessity are there.

One of the lessons that we learned during the COVID-19 crisis is one of solidarity and unity across Europe where governments, businesses and citizens worked together to achieve a common goal. We must apply that lesson to our transformation to a circular economy: only by working together, can we achieve a Europe that is more sustainable, circular and climate-neutral, which thrives in the global economy.

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How will the chemical industry contribute to the circular economy? - POLITICO.eu