10 Established 1961 Monday, April 13, 2020 Business Rising joblessness from virus fight threatens ’s poverty targets Millions lose jobs in economic fallout

BEIJING: Although China is claiming success in its Data firm Caixin said its services purchasing man- battle against the coronavirus, millions have lost their agers’ index, a key indicator of activity in the services jobs in the economic fallout, throwing into jeopardy sector, showed companies cut staff at the quickest an ambitious target to eradicate poverty this year. Bei- pace on record in March. Hu Fangdi, 23, lost her job jing has been working to fire up the economy again as a saleswoman at an airport retail store two weeks after bringing it to a near standstill to curb the spread ago and has had no luck finding a new role. of COVID-19, but many firms have had a bumpy “No one was buying things during the outbreak restart and workers are bearing the brunt of the pain. and the company laid us off,” she said. Lily Han, who Despite being a country of skyscrapers and high- lost her sales job at a tech firm last month, said she tech innovations, China still has millions of people on needs a new job within two months just to make ends meager incomes. About 5.5 million rural Chinese live meet. The 24-year-old has applied for over 300 posi- in poverty, defined by the government as surviving on tions but has come up empty handed. less than 2,300 yuan ($326) a year. ‘Constant anxiety’ A slowing economy With much of the rest puts pressure on a key of the world still locked in Communist Party goal to Many firms all-consuming battles become a “moderately against the virus, the pan- prosperous society” by experience a demic is expected to the end of 2020, an am- bumpy restart heavily weigh on demand bition in place long be- for Chinese goods. Ana- fore the virus emerged. It lysts at financial services also threatens a long- firm Nomura said the na- SHENYANG: A customer (right) buys fruits at a market in Shenyang in China’s northeastern Liaoning province. held tacit agreement be- tion could lose around 18 Inflation in China slowed in March after a record increase the earlier month, driven by a fall in food prices tween people and party million jobs in the export as the country gradually lifts travel lockdowns due to the COVID-19 coronavirus outbreak. — AFP that freedoms can be sacrificed in return for economic sector-nearly a third of the industry’s workforce. This progress, an understanding that largely forms the growing unemployment will be a major blow to con- basis of the authoritarian government’s legitimacy in sumption-a key driver of China’s growth, said Louis to cover my daily expenses,” he said. sales are barely 10 percent of pre-virus levels and Liu the absence of elections. Kuijs of Oxford Economics. has cut salaries. Some firms have taken dramatic China has little in the way of social security benefits Workers and businesses are beginning to feel the ‘I feel constant anxiety’ measures to stay solvent, including paying just a min- and workers who lose their jobs have an inadequate squeeze as cash flow dries up. One worker in con- Some businesses still can’t reopen amid lingering imal living allowance. And authorities have al- safety net, meaning mass unemployment often brings struction management surnamed Zhao, 28, told AFP lockdowns. Eric Liu, owner of Maomaochong Bar and lowed companies to waive some social security a fear of unrest. Official statistics show jobless num- his employer stopped paying salaries in February. “I Pizza in one of Beijing’s ageing hutong neighborhoods, payments, including contributions to pension, unem- bers have soared, with roughly five million more peo- have housing and credit loans to pay... My family is says business is paltry as the narrow alleyways remain ployment and work injury funds-measures that could ple out of work between December and February. now covering my housing loan and I work part-time sealed off. Relying on his home delivery customers, further hit vulnerable workers. — AFP

avirus crisis. Brazil has already an- Wet markets in Brazil deficit nounced a measure to support compa- nies with annual sales of 360,000 reais to 10 million reais. Now, the government struggle jumps to 7% is looking at proposals to target smaller companies to survive blow of GDP “In all of them there is ... the Treas- ury will be behind it because the risk is very high,” said Mansueto. “Soon we WUHAN: Fish and vegetable merchants BRASILIA: Brazil’s 2020 deficit is ap- will define which scheme will be chosen are reopening stalls at wet markets in proaching 500 billion reais ($96 billion), from the three or four that are under China’s central city of Wuhan as it lifts a or 7% of gross domestic product, even discussion.” He did not give further de- months-long lockdown against the coron- before a state aid proposal of up to 222 tails. For the second consecutive day, avirus pandemic, but their future looks un- billion reais to tackle the coronavirus is Brazil’s President Jair Bolsonaro took to certain with few customers as the virus factored in, the economy ministry said the streets on Saturday. A far-right for- stigma persists. on Saturday. In 2019, the deficit was 61 mer army captain, Bolsonaro has The virus, which has infected 1.6 million billion reais, or 0.9 percent of GDP, the chafed at social distancing measures people and killed 106,000 in 214 countries, ministry said. imposed by state governors and even is believed to have originated late last year “It is important that any new fiscal his own health officials. WUHAN: Fish and vegetable merchants are reopening stalls at wet markets in China’s among wild animals on sale in a seafood impact be discussed carefully to avoid an He wants to see the economy central city of Wuhan as it lifts a months-long lockdown against the coronavirus pan- market in Wuhan that has been closed and excessive growth of the primary deficit restarted, arguing that extended shut- demic, but their future looks uncertain with few customers as the virus stigma persists. boarded up since January. That has and public debt of the public sector be- downs pose a greater risk than a disease prompted heavy scrutiny for wet markets, a yond what is strictly necessary to reduce he calls a “little cold.” On Saturday, Bol- key facet of China’s daily life, even though animals, such as fish, in the open air. They yuan ($28 million) to upgrade its 425 farm- the economic and social impacts of the sonaro visited a field hospital being built only a few sell wildlife. Some US officials tend to be popular with shoppers who be- ers’ markets, in a campaign to improve hy- coronavirus crisis,” the ministry said in a near the capital Brasilia, and greeted have called for them, and others across Asia, lieve the items on sale are cheaper and giene, city officials said on Friday. Still, statement. supporters who flocked to see him. to be closed. fresher than in supermarkets. some worry they may not stay around long Separately, Brazilian Treasury Secre- Brazil is the worst-hit country in “This is a person-to-person virus, no Stall owners in Wuhan said they were not enough to see it. tary Mansueto Almeida said that the Latin America by the coronavirus out- matter where you are,” said Jin Qinzhi, a optimistic after their business was badly “We don’t have any income and busi- government is studying a Treasury- break. On Saturday, Brazil’s health min- vegetable and meat vendor at a , hurt by the strict shutdowns in China, which ness,” said Jin. “If it goes on like this, it will backed scheme to help smaller compa- istry said 1,124 people had died as a when asked what she thought about de- ordered a temporary ban on trade and con- be very difficult for us to survive.” Many nies as many banks are not lending due result of the outbreak, with 20,727 con- mands for their closure. sumption of wildlife in January. stores remain shut and some curbs continue, to the risk of default during the coron- firmed cases. — Reuters “Even the supermarket is full of people. “There is no business and no one is even though a sharp drop in new local cases Here people are more scattered. As long as coming,” said a worker chopping fish who prompted lifting of the lockdown. we take precautionary measures, and we only gave her surname, Zhang. “Everywhere China reported 99 new virus infections said Anna Barker, Fairtrade Foundation’s pay attention to disinfecting, it should be is blocked and people cannot come in. on Saturday, taking its tally to 82,052, with East Africa’s senior supply chain manager for flowers. fine.” A common sight across Asia, wet mar- Everyone is scared to go out and contract a death toll of 3,339. Globally, the virus has “Flower workers don’t always earn a lot kets traditionally sell fresh produce and live the virus.” Wuhan will spend 200 million reached 214 countries. — Reuters female flower of money to have savings. We’re really concerned that they won’t have enough workers lose jobs food on their table.” Kenyan farmers Exports wither, workers laid off Floriculture is a key economic pillar NAIROBI/ADDIS ABABA: Emma for Africa’s top flower exporters, Kenya battle fruit-fly Wanjiru had been packing roses at the and Ethiopia. The sector - which culti- flower farm in Kenya’s Rift Valley town of vates flowers for largely European mar- menace Naivasha for six months when she was kets such as the Netherlands, Italy, told not to come back two weeks ago. Germany and Britain - generates over $1 The mother-of-two was devastated billion annually and employs hundreds KIRWIRE VILLAGE, Kenya: Gideon Gi- to lose the monthly wage of 7,200 of thousands of people across the two tonga inspected his avocado orchard in Kenyan shillings ($72) in a nation where east African nations. In Kenya, flower central Kenya with military precision, re- unemployment is high and her husband’s exports are among the top foreign ex- vealing that some of the fruit were tinged wage as a mason too meagre to support change earners, along with tourism and with a worryingly familiar yellow colour. their family of four. “I didn’t understand remittances. While in Ethiopia, the sec- Yet again, it was the same culprits at- when my supervisor first told me I was tor earned $280 million in the last fiscal tacking his crop on the farm in Kirwire vil- losing my job because of the coron- year, according to the Ethiopian Horti- lage in Meru County: fruit flies. “Most of the avirus,” Wanjiru, 37, told the Thomson culture Producers Exports Association. fruits you see with a ripening colour are not Reuters Foundation by phone from But lockdowns across many Euro- ripe,” he said. “(They) have been punctured Naivasha, 100 km (60 miles) north of the pean countries, coupled with the can- capital, Nairobi. by fruit flies and are in the process of rotting Gideon Gitonga holds a container of trapped fruit flies at his farm in the†Kenyan village cellation of international flights, has led and eventually falling off.” of Kirwire, in Meru County. — Reuters “She said the flower orders were not to flower exports in both nations plung- As the planet’s climate heats up, rising coming anymore and there was not ing by up to 80 percent, forcing farm temperatures have driven a massive in- enough work for us all. I hope to go owners to trash tons of their high-qual- crease in Kenya’s fruit fly population, say damage by the fruit flies is quite devastat- ure for the whole area. back to work when this coronavirus is ity blooms. “Because of the lockdowns agricultural experts. Farmers in fruit fly-in- ing,” Gitonga told the Thomson Reuters Mwaura said warmer weather speeds up over ... but I don’t know when that it is in our main markets, flowers are not fested areas are losing on average up to half Foundation. a fruit fly’s development, giving it more time and how my family will survive until seen as a necessity, but more of a luxury. their crops each year to the tiny pests, said as an adult to lay eggs and produce more then.” With overseas demand for fresh- The concentration has been on health Onesmus Mwaura, a research assistant at Heat-loving pests offspring. “The body activity increases with cut flowers plummeting due to the and safety products, and food,” said the Nairobi-based International Centre of Paul Thiuki, an agricultural extension offi- the rise in temperature, hence feeding and COVID-19 pandemic, thousands of Clement Tulezi, chief executive of the Insect Physiology and Ecology (ICIPE). cer who has been working in Meru for 20 reproduction is highly increased, leading to women in flower farms in Kenya and Kenya Flower Council. Fruit-fly damage costs farmers an esti- years, said the region’s warming climate has population build-up,” Mwaura explained in Ethiopia have lost their jobs and are at “Cash flows have become an issue mated 50 billion Kenyan shillings ($472 mil- turned it into a perfect breeding ground for an email interview. risk of being pushed into poverty, and we had to look at how to remain lion) every year, according to the fruit flies. Average temperatures in Kenya have Higher temperatures also cause fruit to warned labor rights campaigners. The afloat. The first thing to look at was the government’s Horticultural Crops Direc- risen by 0.3 degrees Celsius (0.54 degrees ripen faster and release more of the com- coronavirus crisis, they add, has spot- workers because wages take up 45 per- torate. The fruit fly population in Gitonga’s Fahrenheit) per decade since 1985, according pound that attracts fruit flies, encouraging lighted long-standing problems in cent of any flower farm operation.” two-acre (0.8-hectare) orchard was “mini- to the U.S. development agency USAID. their feeding and egg-laying, he added. global supply chains, such as East Around 10,000 casual workers have mal” when he first started commercial avo- In 2011, when farmers in Meru first Adult flies burrow into the fruit’s flesh to lay Africa’s flower industry which employs been laid off, and about 50 percent of cado farming eight years ago. It has since started noticing more fruit flies, the county’s their eggs, introducing bacteria that causes mostly female workers growing bou- permanent workers given compulsory turned into an infestation, destroying up to central ward had about 10,000 of the in- the fruit to rot. When the eggs hatch, the lar- quets of roses and carnations for west- annual leave, said Tulezi, adding this three-quarters of his crop each year since sects - a manageable number at the time, vae eat the fruit from the inside out. An adult ern supermarkets. was done in agreement with workers’ 2017, he said. Thiuki said. ICIPE researchers calculate the fly can lay between 100 and 500 eggs in its “We’re already hearing reports of unions. In neighboring Ethiopia, indus- Even when the affected avocados sur- number of fruit flies by laying monitoring lifetime, Mwaura explained. “Fruit flies (are) tens of thousands of workers who’ve try officials estimate about 50,000 vive, their quality is so degraded it is diffi- traps, counting how many are caught after denying farmers a chance to generate any been sent home on compulsory leave or workers could lose their jobs in the cult to find anyone willing to buy them. “The two months, and then extrapolating the fig- substantial income,” he said. — Reuters that temporary contracts ended earlier,” coming weeks. — Reuters