21/03/2016 World Business Report


21/03/2016

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As Obama touches down in a rather rainy Cuba for a historic visit,

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we look at how businesses there are beginning to take advantage

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Plus new technology aiding the fight against corruption.

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We take a look at advances in India that seem to be having a big impact.

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Welcome to World Business Report. I'm Sally Bundock.

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Also in the programme, what are "click farms"?

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Here is a clue - the recent denial from

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Cambodia's Prime Minister that he bought millions of Facebook likes.

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President Obama has arrived in Havana, the first US presidential

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Mr Obama will meet President Raul Castro later today

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and then speak at an event focused on entrepreneurships.

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US-Cuba relations were frozen in the early 1960s, when the US

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broke off diplomatic relations and imposed a trade embargo after

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It's estimated the trade embargo has cost the Cuban

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Obama normalised diplomatic and economic ties in December 2014,

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but the embargo cannot be fully lifted without approval from the

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Travel restrictions have also been eased by President Obama.

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Yesterday US hotel company Starwood became the first American firm to

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agree a deal with the Cuban authorities since the revolution

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of 1959, agreeing to spend millions renovating hotels in Havana.

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Many in Cuba now hope the country is on the verge of a new

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economic era, and it's estimated that between 20-30% of the workforce

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is now privately employed in the self-described communist state.

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Throughout the day, we'll look at some of those people

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running businesses in Cuba, starting with art design, a career that's

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We wanted to do something different. We also wanted to do something that

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is very connected to design. Because design is very important, and here

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in Cuba it is not that common. It is a sharp gallery, design studio and

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workshop. This is really powerful, and very interesting. But it doesn't

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represent me any more. So I want to make it closer to me. Just to chill

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out all that propaganda. It is not criticising, it is not making

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history wrong or whatever, it is just saying what we want to say

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right now. The challenges of making a business in Cuba are very

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connected to how people face that new reality. It is very hard also

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because there is no tradition, we have no tools for that. I have to be

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very concerned about quality, about competitiveness, about efficiency. I

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feel like an astronaut. I feel like I'm discovering a whole new world. I

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feel like if people around me feel the same, we can actually do

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something really amazing. And I don't know, maybe this doesn't work.

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Maybe next year we're out of business. But right now, it feels

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like it is working. Let's hope she is not out of business next year. A

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lot more about Uber online. -- Cuba. When is a like on Facebook a real

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like - and when has it been bought? That's a question being asked

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on social media in Asia this week, with the Prime Minister

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of Cambodia, Hun Sen, forced to That's because the leader of the

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relatively small Asian nation has That's in a country with an internet

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penetration rate of just 9%. That compares to the UK,

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for example, where Prime Minister David Cameron's Facebook page has

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a mere one million likes, even though the UK has a hefty

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internet penetration rate of 91%. Thousands of likes can be purchased

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for just a few dollars, and it's becoming a growing issue

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across social media platforms. It is a big deal for advertisers, as

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you can imagine. Sharanjit Leyl joins me now from

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Singapore with more on this. This is a fascinating story. It is

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fascinating. I will try to tell you as much as a node in one minute. It

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is extraordinary when you look at those stats. It is something

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everybody knows exists. Several studies have been done looking at

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the phenomenon of buying the likes, and social media has been criticised

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for this practice even though many of these platforms have issued

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statements saying they discourage the practice by regularly purging

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fake accounts. But the business upshot is if you are a brand,

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celebrity or political leader, buying social media popularity will

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likely come back and white you. For instance, it was widely reported

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when Instagram purged accounts of fake followers, celebrities like

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Justin Bieber lost 3.5 million followers on that platform. As you

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showed, it has not done the Cambodian leader any favours, as he

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has been caught out using this practice. One analyst said there is

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a more with jubilant -- all legitimate way to drum up interest

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by creating engagement with users that go beyond the like button, and

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to do well, companies should initiate the right engagement at the

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right time and create timely posts that relate to trends. In this way,

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the algorithms from Facebook and other social media will be able to

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recognise it as legitimate interest and increase that person's file. So

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that is a bit of a trick. Thank you for those topped tips. See using. --

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top tips, see using. In many countries,

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corruption is an unwelcome part However, bribes and kickbacks don't

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just have an impact on those who have to pay them,

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they also have a huge influence It's estimated that corruption costs

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the global economy All this week, we're looking at how

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governments are trying to tackle the problem, starting in India, where

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Shilpa Kannan reports from Delhi. A Delhi traffic policeman

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filmed taking money. Shocking as it may be,

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bribery like this, usually small amounts of money taken

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by officials for doing something that should be free, has long been a

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way of life in many Indian cities. Now the police force is trying to

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clean up the system, Using basic technology,

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people can use the messaging service WhatsApp to submit evidence

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of alleged wrongdoings, and they Compared to the amount invested to

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make the service more accessible to the public,

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I feel the economic impact on the Cracking down

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on often petty corruption Another big frustration many Indians

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have come across is that getting even official things like passports

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can only be done if you know the So, might technology be helping

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to clean up that as well? India issues over 12 million

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passports each year. It used to be an endless wait to get

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one, but now the process can take That is partly down to the

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technology automating the system, But the government department

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responsible says computers have stripped away the opportunities

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for under-the-table bribes. It makes

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the bureaucracy faceless, and also Once you make

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the operation cashless, From fingerprint-scanning to

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keeping digital records, it may seem basic, but is

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technology making a difference? With India increasingly looking

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for outside investment, often from countries with very

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strict anti-bribery and corruption laws, making doing business here

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more transparent can only help. And in the war on corruption,

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technology is looking Australian stocks have fallen after

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Prime Minister Malcolm Turnbull recalled parliament and brought

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the Budget forward, setting Australia will hold

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an early election if the country's Senate fails to pass laws aimed

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at curbing union corruption. The government has introduced bills

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to re-establish a construction industry watchdog to

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the Senate five times. A UK exit from the EU would cause

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a "serious economic shock", potentially costing the country ?100

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billion and nearly one million jobs. That's the verdict

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of a report commissioned by the CBI, a lobby group which represents

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major business in the UK. The report was rubbished by the

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Vote Leave campaign group, who say employment and the economy would

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continue to grow after an exit. That is all for me for now. We will

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cover other business stories shortly when we cover the papers. See you

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shortly. With the increase

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in laser attacks on helicopters and aeroplanes, the authorities here

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in the UK have been thinking up new ways to protect pilots -

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and catch those responsible. According to the

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Civil Aviation Authority,

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