21/01/2014 World Business Report


21/01/2014

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Those are the latest headlines from BBC World News. Now for the latest

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financial news with Sally and World Business Report.

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Where are the jobs? The International Labour Organisation

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sees rising unemployment in the next few years, despite the creation of

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many new jobs. Serbia has officially started

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accession talks with the European Union. If all goes well, it may

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become a member sometime around 2020.

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Welcome to World Business Report. I'm Sally Bundock. In a minute,

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we'll also hear how it's becoming easier for foreign auto companies to

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build and sell cars in Malaysia. The world economy may have turned

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the corner but the job market is yet to recover. That's according to the

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latest report by the International Labour Organisation. The study shows

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not enough new jobs are being created to keep up with a growing

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labour force. Almost 202 million people were jobless around the world

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last year. That's five million more than in 2012. And the ILO predicts

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global unemployment will continue to rise, with about 215 million people

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seeking jobs by 2018. Guy Ryder is the director-general of

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the International Labour Organisation. He joins me now from

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Geneva. You are calling this a jobless recovery. Tell us more about

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your concerns. The problem we have is that despite the recovery, in

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global economic growth, we're not going quickly enough into the new

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entrance of the markets around the world.

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We have going dole queues. This trend will continue unless the trend

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picked up significantly. At the time, policymakers were saying, the

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crisis will be over. When we get people back to work, that is.

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Unfortunately, people are not going back to work. Things are still going

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in the wrong direction. Policymakers have to focus on this. From the

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perspective of business leaders and the developed world, they say there

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are more confident. Many are ready to invest and create new jobs. You

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are saying that governments need to be more. We need investment to pick

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up. One of the key policy areas we identified in our report is

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uncertainty. Higher uncertainty, policy uncertainty. Policymakers

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have they have clear indications of where they are going in the future.

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Then we will see jobcreating investment picked up. Corporate

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profits are doing well around the world. Two of that is still going

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into financial markets and assets, rather than real economy

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investment, job creation investments. That needs to be

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redirected. We are looking at a global view. If we have to narrow it

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down, where do you feel which country is doing... Not doing

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enough? Nearly half of the additional unemployment in 2013, 40

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5% has been observed in Asia, South Asia and East Asia. That might not

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be where you would expect. That might be related to demographic

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trends. The highest level of unemployment, and this is not new,

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is to be found in North Africa and the Middle East. Some of the has to

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do with political turbulence and dislocation. That part of the world

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has had a long-term structural problem in labour markets. We have

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to look at the developed world. We have to look at the euro area. An

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employment figures remain stubbornly high despite feeling the corner has

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been turned. We have to look across the world and point the finger at

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the situation of young people. If you translate these millions in the

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percentage terms, for the general population, unemployment is around

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6%. For young people, it is 13% and heading in the wrong way. We have to

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give priority that. Thank you.

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Serbia, once considered a pariah state, is eagerly awaiting the start

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of accession talks with the European Union, hoping the move will provide

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a boost to its struggling economy. Socialist Prime Minister Ivica Dacic

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will head Serbia's delegation in Brussels today at the first

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inter-governmental conference, a formal start of the talks on EU

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membership. As Guy Delaunay reports from Belgrade, Serbia's industry has

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a lot of catching up to do before it can join the European mainstream.

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It had its own railway station. It gave its name to the surrounding

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area and local football team. The sprawling industrial complex outside

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a great lies in ruins. This is to be a combined Harvester fact there

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Thousands of people once worked here. Like most of Serbia's

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industry, it didn't survive the breakup of Yugoslavia. -- harvester

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factory. It is trying to attract investment. These are desperate

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times. Around one in three people cannot find a job. Even those who

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can earn an average of 400 euros per month. The country has to break with

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the past and embrace a European future. We are very keen. We are

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very frank and open to cooperate with the international community to

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get more knowledge from Western societies, to attract more

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investors. Is car factory shows renewal is possible. It is to be a

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disaster of a factory. Now it is turning out the theatre models. The

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Italian company to wake for EU talks to make the move. -- wait. It might

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make Serbia at an attractive option for investors. There are mixed

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feelings about the prospect of EU membership. We have a big market in

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European unions. We have the opportunities. Maybe we have a

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problem with retail standards because a lot of companies work in

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Serbia do not have licences and standards. We are closer to Russia

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and NT the EU. We appreciate some of the things that are not Willie

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valuable today. A lot of things will change you. Whatever happens, it

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will take time. Of negotiations and reform will follow before Serbia

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finally becomes an EU member. The Malaysian government has

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unveiled a new policy which could create big changes for foreign car

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manufacturers. Babita Sharma has the details from Singapore. An

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interesting development this morning. The government says it will

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these incentives in relation to smaller vehicles. Foreign carmakers

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can only make vehicles with an engine size of 1.8 litres. That was

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to protect the country's National car makers. This policy shift

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emphasises the opportunities for international brands looking for new

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avenues of growth. To give you an idea, there are 650,000 cars sold in

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Malaysia last year. That is a 5% growth compared to sales in 2012.

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The government aim is to increase total car production to around 2.5

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million vehicles by 2020. Previously, Malaysia was South East

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Asia's carmaking hub, before Thailand took over. This change

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could be a benefit for Honda. They already have a hybrid car

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manufacturing plant in Malaysia. Time will tell how this works out.

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A lot of cash has been injected in the Chinese economy in the run-up to

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the lunar New Year. Energy distribution bosses will face

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questions today from MPs about the power cuts which followed the storms

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over the Christmas period. The problems hit

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