20/09/2013 World Business Report


20/09/2013

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BBC World News. Now for the latest financial news

:00:00.:00:00.

Nigeria's criminal crude — oil worth with Alice

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Nigeria's criminal crude — oil worth billions of dollars is stolen and

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sold on international markets every year, according to a new report.

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Iceland's Prime Minister tells the BBC his country is open for business

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five years after the financial crisis that brought it to the brink

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of bankruptcy. Welcome to World Business Report.

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Sunday's German election with a top Sunday's German election with a

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economist in Berlin. But first, stolen on an industrial

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scale — that is how a new report describes the theft of crude oil

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Nigeria. A Nigeria. A massive criminal

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enterprise that has knock—on effects around the world. According to the

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Royal Institute of International Affairs, 100,000 barrels of oil per

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day were stolen from pipelines in the Niger Delta in the first three

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months of this year. Counting theft from export terminals, that total

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could be much higher. The theft could be much higher. The theft and

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lost production because of damage to pipelines costs Nigeria an estimated

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$5 billion a year in lost revenue. Stolen oil from this area could be

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finding its way into markets in the US, Asia and the Balkans, often

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mixed with legitimate crude to make it untraceable. And the proceeds are

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likely to be laundered in the financial centres like London,

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Singapore and Dubai. Here is our Singapore and Dubai. Here is our

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correspondent in Nigeria. Armed and ready for action. These

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soldiers are off to patrol the creeks of the Niger Delta. Tough

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security is needed here because creeks of the Niger Delta. Tough

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is stolen. It is estimated that Nigeria lost about 100,000 barrels

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of oil every day of this year 's first quarter. It is a lucrative

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oil which is then sold break into pipelines,

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internationally. Closer home, some of the stolen oil is processed

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from their land. This is contributed to the ongoing plunder of resource.

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The corporation charged with regulating the oil industry is often

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report has raised these reports —— report has raised these reports ——

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these concerns and more, calling for foreign governments to and ensuring

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countries. They have also urged the countries. They have also urged the

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government to track the oil more thoroughly. Stemming the flow of

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stolen crude is crucial. This report highlights the well—known facts

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about the billions of dollars of oil —— of revenue lost to theft. The

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Nigerian authorities, including the Nigerian authorities, including the

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military, have themselves been accused of being complacent or even

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colluding with the thieves. Clearly, the government has its work

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cut out if it is to put an end to this rampant pilfering of the nation

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's most treasured resource. 's most treasured resource.

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Now to Germany, and Now to Germany, and Sunday's

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election, which is being closely watched by global markets.

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Chancellor Angela Merkel's centre right coalition has a slim lead over

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the left—leaning opposition parties in opinion polls. She's credited

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with steering a with steering a steady course

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through the eurozone crisis so far, insisting on tough austerity in

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return for Germany's financial support. That's despite calls from

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the left for more emphasis on growth and from the right to quit the euro

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as usual on Monday? as usual on Monday?

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President of the DIW research President

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Come Sunday, is it likely that we institute in Berlin.

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are going to see any major change in are going to see any major change in

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Germany's economic policy? Good morning. No ID not think there will

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be a major feeling that the German economy is

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government will come feeling that the German economy is

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everything right in the past is the everything right in the past is the

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perception. On key issues, the major parties have

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position will stop I do not expect there will be any major change. What

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about the differences in calls that we are seeing from some parties

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saying that the austerity routes that we are seeing across Europe,

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being driven by Germany, is still working, others saying it is not,

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those on the right in Germany saying they want to leave the eurozone

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altogether. There is big support within Germany to stay within the

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euro and also to keep all the other members part of the euro. The

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attitude of the population and of the major parties is very much pro—

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European. However, there is little appetite, as before, by any party to

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give more to Europe in terms of financing, so the German government

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will do the least necessary to keep the euro afloat. There is also these

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Germany. This focus on the need for Germany. This focus on the need for

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a minimum wage in Germany, and also this debate about the top rate of

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tax, and whether tax, and whether it should be

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raised. The election campaign has very much been about fairness, not

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about the economy, Howard is doing, but really about distribution. You

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should have how much within German society. Very much a push towards

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more equality, less inequality in terms of income and benefits and

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entitlements will stop that has been entitlements will stop that has

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a key issue. But the European issues a key issue. But the European issues

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and the German economy has not been at the forefront of the debate.

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Would you say that debate is focused on Eurozone crisis, unemployment and

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social policy, but specifically social policy, but specifically on

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the topic of the top the topic of the top rated tax, is

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that likely to gain traction? Has it proved a divisive point within the

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campaigning? This discussion of raising the tax for the top income

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earners has been very controversial. But I think it is fair to say that

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there is a fair bit of scepticism echoes the German government already

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has a fiscal surplus. A lot of people ask, why do we need a another

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is doing very well? I have picked tax rate if the government

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is doing very well? I have picked out whether such a big change in

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income tax for the top earners will come into effect because of that

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surplus and that the government has surplus and that the government

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been doing very well. been doing very well.

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Thank you for joining me. Thank you for joining me.

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Five years ago, its banking system collapsed, its currency crashed and

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it was plunged into a severe recession. But now Iceland is back

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and ready for and ready for international

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investment. That's the message from its prime minister Sigmundur

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week trying to entice foreign week trying to entice foreign

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capital back to his country. capital back to his country. He's

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been talking to the BBC and started by telling us why Iceland has halted

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talks to join the European Union. There is very little support for EU

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membership in Iceland. Why is that? Because things are not progressing

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economically in the eurozone in particular. We see GDP growth in

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Iceland, we see stability, economic and political stability returning.

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future, based on natural resources, future, based on natural resources,

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the position in the Arctic, a the position in the Arctic, a

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EU talks now? Will there be a so on. Have you closed the

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referendum? We have decided we would referendum? We have decided we would

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not continue without a referendum. point would a referendum be a viable

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option. The next step would be to have a debate in Parliament. What is

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the opinion of what it is it —— what the opinion of what it is it —— what

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is it becoming? We will have two decide whether it is something which

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will suit us in the future. You have talked about capital controls. They

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Iceland. In a way, unfairly protect basically prevent foreign owned

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rid of them? And what effect will they have on the economy? They were

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a necessity because of the situation the economic crisis created in

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to deal with. However, the to deal with. However, the

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fundamentals of fundamentals of the Icelandic

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inspecting investment to grow inspecting investment to grow

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steadily, we are expecting the current —— the currency

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strengthen. Everybody remembers the strengthen. Everybody remembers the

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banking saga in Iceland. It is that —— is it now I trust worthy

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situation? The Eurozone and the EU situation? The Eurozone and the EU

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have not gone through this process. Iceland has built a more stable

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system, transparent and well system, transparent and well

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functioning, so people should feel more at ease investing in Iceland

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are in in other places. —— than

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