Showing posts with label Insight. Show all posts
Showing posts with label Insight. Show all posts

Wednesday, March 12, 2014

28-million-year-old fossil gives researchers new insight into origin of whales’ sonar

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28-million-year-old fossil gives researchers new insight into origin of whales’ sonar

Thursday, February 6, 2014

Insight: Republicans still seen falling behind in election data wars




WASHINGTON Fri Feb 7, 2014 1:17am EST



The Republican party information table is seen at a Romney/Ryan office as volunteers get in their last efforts the day before election day in Wauwatosa, Wisconsin November 5, 2012. REUTERS/Darren Hauck

The Republican party information table is seen at a Romney/Ryan office as volunteers get in their last efforts the day before election day in Wauwatosa, Wisconsin November 5, 2012.


Credit: Reuters/Darren Hauck




WASHINGTON (Reuters) – When Barack Obama defeated Mitt Romney in the 2012 U.S. presidential election, many political strategists saw it as a triumph of the Obama team’s technological prowess, allowing it to identify likely Democratic voters and get them to the polls.


It was a sore point for Republicans, who came out of that election vowing to nullify the Democrats’ advantage in gleaning information from voter databases and social media to find potential supporters.


More than a year later that still has not happened. According to interviews with a dozen strategists from both parties, Democrats appear set to maintain their technological edge, potentially boosting their prospects in the 2014 midterm elections just as other factors – such as President Obama’s sliding popularity – are likely to favor Republicans.


It is not that the Republicans are not trying.


The Republican National Committee is spending “tens of millions of dollars,” spokeswoman Kirsten Kukowski says, to “change the culture of our data and digital program” with new data analysis teams in Washington and Silicon Valley. Meanwhile, independent conservative groups funded by big-money donors such as the billionaire brothers Charles and David Koch continue to have their own digital teams, typically focused more on issues – such as opposing Obama’s healthcare overhaul – than on individual candidates.


But in a reflection of some of the divisions between the Republican Party’s most conservative members and its more moderate establishment, campaigns and other groups often do not share information about voters and tactics.


And even as party leaders are aggressively pursuing a new digital game plan, Republican strategists acknowledge that some conservative candidates and their supporters remain wary of changing tactics they have used for years, such as reaching voters through television ads and door-to-door campaigning without much help from analyses of voter databases.


Some Republicans’ skepticism was fueled in 2012 by the embarrassing failure of the Romney campaign’s ORCA project, a data system that was designed to help get conservative voters to the polls and improve communication between campaign offices. ORCA crashed on Election Day, potentially harming Republican turnout.


“There’s a fundamental cultural problem” in how Republicans have dealt with technology in recent elections, said Vincent Harris, a Republican digital strategist who this year is helping candidates such as Senate Majority Leader Mitch McConnell of Kentucky.


“Democrats are still a couple (election) cycles ahead of us,” Harris said.


OBAMA’S DIGITAL ‘GURUS’


The Democrats’ digital advantage is fueled largely by tools developed by Obama’s campaigns in 2008 and 2012 to identify likely Democratic voters, persuade them to vote and encourage their friends to do the same.


Using databases built from such information, digital teams can design and target ad campaigns and online outreach efforts through social media and emails to specific groups.


The Democrats’ efforts are further boosted by a network of dozens of former Obama technology aides who have formed consulting companies that, while independent of one another and the party, share information and strategies with each other and with clients, including many campaigns.


During the past year, this Democratic network helped the successful campaigns of Virginia Governor Terry McAuliffe, New York City Mayor Bill de Blasio, New Jersey Senator Cory Booker and Boston Mayor Marty Walsh.


Now, several of Obama’s former digital and data staffers are turning their sights on 2014 races, some of which pose large hurdles for Democrats.


They include Teddy Goff, a former digital director for Obama’s 2012 campaign. Goff’s firm, Precision Strategies, has been hired by the campaign of Charlie Crist, the Republican-turned-Democrat and former Florida governor who is seeking to reclaim that job this fall in a battle against his successor, conservative Republican Rick Scott.


In Wisconsin, BlueLabs, which includes Obama 2012 data engineers Chris Wegrzyn and Daniel Porter, has gone to work for Mary Burke. She is the Democrat challenging conservative Republican Governor Scott Walker, who is seen by many Republicans as a potential presidential candidate.


Other firms led by Obama digital campaign veterans include 270 Strategies, which is led by the 2012 campaign’s battleground states director Mitch Stewart and national field director Jeremy Bird.


It has signed on to help Democrat Wendy Davis’ long-shot bid for Texas governor against Greg Abbott, the Republican attorney general in the mostly Republican state.


The 270 Strategies firm also is working for Ready for Hillary, the political action committee supporting a possible presidential run by former Secretary of State Hillary Clinton in 2016.


The Democratic digital and data teams are coy about discussing their tactics and strategies, but Republican digital specialists say they have seen enough of them to recognize a gulf between each side’s capabilities.


Ned Ryun, founder of Republican campaign technology company Voter Gravity, pointed to the 2013 race for Virginia governor as an example of Republicans’ struggles with voter data.


McAuliffe defeated conservative Republican Ken Cuccinelli in the politically divided state, a big win for Democrats at a time when Obama’s administration was under fire for problems with the rollout of Obamacare.


“The Cuccinelli campaign was going door-to-door using paper and pen” while collecting voter data, Ryun said. “When I asked what happened to the data, their guy just shrugged his shoulders.”


When campaigns do not retain or share data, Ryun said, it hurts candidates’ ability to persuade voters, and information that a campaign obtains cannot be used by future candidates.


A ‘WAKEUP CALL’


So will the digital advantage of the Democratic Party and its friends make a big difference in the 2014 elections?


Probably only in tight races, analysts said. These could include those featuring vulnerable Senate Democrats such as Mark Begich of Alaska, Mark Pryor of Arkansas, Mary Landrieu of Louisiana and Kay Hagan of North Carolina. The four Democratic senators are crucial to Democrats’ efforts to keep control of the Senate, where Republicans need to gain six seats to take over the chamber.


The embattled Democratic incumbents will benefit from their party’s continued investment in data operations, analysts in both parties said. The Democratic Senatorial Campaign Committee has launched an effort to increase turnout in the senators’ states, and plans to use voter data to mobilize people who otherwise might not vote in a midterm election.


Republicans are hoping their efforts to oust the senators will receive a big push from dissatisfaction with Obamacare and the first fruits of the RNC’s revamped digital program that the party hopes will be in high gear by the 2016 presidential election.


Money is not an issue, and Republicans are trying to close the expertise gap by both hiring more experts and increasing training.


“There was a wakeup call after 2012″ throughout the Republican Party, said Tim Miller, executive director of America Rising, an opposition research group for Republicans.


Even so, some Republican digital strategists say the party’s investment in a digital team at the RNC headquarters in Washington has not yet translated into much help for campaigns.


“I have a dozen clients with primary elections in two months, and early voting starts in two weeks. If I were waiting for people sitting inside the (Capital) Beltway for marching orders, I wouldn’t have done anything yet,” Harris said. “We have had to do this ourselves without a lot of help from the establishment.”


(Editing by David Lindsey, Martin Howell and Lisa Shumaker)






Reuters: Politics



Insight: Republicans still seen falling behind in election data wars

Insight: Republicans still seen falling behind in election data wars

WASHINGTON (Reuters) – When Barack Obama defeated Mitt Romney in the 2012 U.S. presidential election, many political strategists saw it as a triumph of the Obama team’s technological prowess, allowing it to identify likely Democratic voters and get them to the polls.


Reuters: Top News



Insight: Republicans still seen falling behind in election data wars

Monday, December 2, 2013

Insight with Gene Sharp- From Dictatorship to Democracy

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Insight with Gene Sharp- From Dictatorship to Democracy

Sunday, August 4, 2013

Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

ZINTAN, Libya (Reuters) – To his captors, the fate of Libya’s most prominent prisoner, the son of ousted dictator Muammar Gaddafi, can be sealed only in one place – in the small straggling mountain town where they have kept him locked up for nearly two years.



Reuters: Top News



Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son


Saif al-Islam, the son of Libyan leader Muammar Gaddafi, smiles as he greets supporters in Tripoli in this August 23, 2011 file photo. REUTERS/Paul Hackett/Files

Saif al-Islam, the son of Libyan leader Muammar Gaddafi, smiles as he greets supporters in Tripoli in this August 23, 2011 file photo.


Credit: Reuters/Paul Hackett/Files






ZINTAN, Libya | Sun Aug 4, 2013 4:19am EDT



ZINTAN, Libya (Reuters) – To his captors, the fate of Libya’s most prominent prisoner, the son of ousted dictator Muammar Gaddafi, can be sealed only in one place – in the small straggling mountain town where they have kept him locked up for nearly two years.


The prize of former rebel fighters who triumphed in catching him as he tried to flee the country, Saif al-Islam Gaddafi is being kept in a secret location somewhere among Zintan’s sandstone and concrete buildings.


The one-time heir apparent remains out of reach of the government in Tripoli and even further from the International Criminal Court (ICC) in The Hague, which also wants to try him. His captors, distrustful of a government they say is failing the state, say any tribunal he will face should be in Zintan.


If the country’s leaders do not hold a trial soon over crimes committed before and during the 2011 uprising that toppled his father, they will do so themselves, they say.


“If there is no trial for him, the Libyan people will bring him to justice,” said Alajmi Ali Ahmed al-Atiri, the man who led the patrol that caught Saif al-Islam in the Sahara desert.


“We will give the Libyan government a chance to bring him to trial. If they delay it, frankly we will say that we, as Libyan revolutionaries, will bring Saif to the revolutionary court. It will be a public and just trial.”


Such declarations highlight the limited power the central government has on the fighters who chased out Gaddafi and now believe they deserve to be the real beneficiaries of the 2011 uprising.


Zintan, a dusty Arab garrison town sprawled atop a steep-walled plateau in the mainly ethnic Berber Western Mountains, played an outsized role in the 2011 war. Two years ago, its fighters came down from the highlands, broke Gaddafi’s defenses along the coast and led the charge into Tripoli.


Today, they remain organized and contemptuous of a central administration that, faced with assassinations, attacks on national and Western targets and a mass jail break, is losing its grip over the oil-producing state.


Tripoli is already involved in a legal dispute with The Hague, which is seeking Saif al-Islam for war crimes. But the real tussle is at home, where the government has unsuccessfully tried to move him to a specially-built jail in the capital.


His impending trial, whenever and wherever it may be, will be emblematic of who has the real power on the ground – the frontline rebels who fought Gaddafi’s forces or Tripoli’s politicians, who already face increasing popular discontent.


“The ball is now in the government’s court and the government is very fragile – it is probably going through its most fragile phase ever in this transition,” Human Rights Watch Libya researcher Hanan Salah said.


“This is a case of one very prominent detainee but think about the so many more detainees being held by other militias that are given some sort of legitimacy or not. It showcases where the country is at in this stage of its transition.”


“MICKEY MOUSE TRIALS”


Zintan fighters caught Saif al-Islam in the southern desert, a month after his father was captured alive, battered to death by a lynch mob and displayed in a meat locker. The son was flown back to Zintan and many say treated ever since as the town’s trophy and a bargaining chip for influence and power.


With a photographer and a cameraman, I was the only reporter on the plane that brought him to Zintan in 2011. Wrapped in a Bedouin turban and cloak, the former heir apparent, known for his dapper suits and PhD from the London School of Economics, was lost in thought, occasionally chatting with his captors.


His right hand was bandaged and missing three fingers. He said they were blown off in battle. Many Libyans assume his captors chopped them off, including the index finger he wagged at the camera in a notorious televised speech at the uprising’s start, when he promised his father’s foes “rivers of blood”.


Saif al-Islam, 41, has already appeared in court in Zintan on separate charges that he gave information threatening national security to an Australian ICC lawyer last year.


Melinda Taylor, appointed by the ICC to act as his defense lawyer, was herself detained in Zintan for three weeks after her meeting with him. She has said her detention proved he could not get a fair trial in Libya.


For Libyans with years of pent up anger, Saif al-Islam and former spy chief Abdallah al-Senussi, in a Tripoli jail, are the most important faces of the Gaddafi government they can hold accountable for 42 years of dictatorship.


The men in Zintan, a town that prides itself on a history of martial prowess far beyond its modest size, say they are doing their national duty by keeping Saif al-Islam safe from harm.


“There is no reason to transfer him to Tripoli. Zintan is a Libyan town and there needs to be a secure place for the trial. We have good judges,” Atiri said.


“We will ask Libyans who may have any problems with Saif or any accusation, as well as anyone who wants to defend Saif, to be at this court. If we find him guilty, he will be punished, if we find he is innocent, he will choose his life.”


In June, the prosecutor general’s office said one major trial involving Saif al-Islam, Senussi and other Gaddafi-era officials would begin in the first half of August.


It is not clear whether the trial will indeed go ahead soon, or where it would be held. Justice Minister Salah al-Marghani, whose ministry has previously been stormed by angry armed groups, says he will not stand for “Mickey Mouse trials”.


“He will be tried where the court is sitting. We have most of the accused in Tripoli so it could well be Tripoli or any other place,” Marghani told Reuters. “There will be proper trials and when we say proper, we mean proper.”


On Wednesday, a court in Misrata, another city at the forefront of the revolt, sentenced former Gaddafi-era Education Minister Ahmed Ibrahim to death for inciting violence during the uprising, the first such sentence handed down. The supreme court must confirm it before the execution can be carried out.


Human rights activists fret that the government’s weakness and the shakiness of rule of law mean that proceedings will fall short of international standards. The government is still trying to take control of prisons where thousands of detainees have languished for two years without trial. Investigations are slow, prosecutors scarce and willing defense lawyers even scarcer.


IMPATIENCE


Armed groups, distrustful of a judiciary they view as a relic of dictatorship, often enforce their own justice, holding prisoners in jails out of reach of the state.


“Impatience with the pace of justice and overall mistrust embolden armed groups,” International Crisis Group wrote in a report April. “Their increased activism undermines the state’s ability to function, including on matters of law and order; and this in turn vindicated the armed group’s claim that it is their duty to fill the vacuum.”


Saif al-Islam, who was seen as the business-friendly face of Libya in the years when his father achieved rapprochement with Western powers, is not the only prisoner in Zintan. A former school library has been turned into a jail, where Gaddafi-era field commanders and officials are held.


“All Zintani prisoners have rooms with air conditioning, they have a television, they go outside in the sun, they have time for reading, they get religious lectures,” Atiri said, adding prison literature was usually religious-themed.


Saif al-Islam was “just like any other any other prisoner”, he said. His health is fine and he receives monthly medical checks. “He is talking, he has good relationship with his guards,” he said. Asked if Saif al-Islam was alone, Atiri would not answer: “The main thing is that he is in prison.”


Residents complain that the town of 35,000 people, made up of modest one-storey houses and where bins placed in the middle of roads act as speed bumps, is being neglected.


“After two years, nothing has been achieved – we have a lack of drinking water, poor communications, an old hospital and buildings. The only thing we have is security,” Mohammed Ali Wakwak, head of the Zintan local council, said. “The government promises a lot but nothing has been done. Of course we are patient, we want to give the government a chance but the situation now is very serious.”


If the government was serious about trying Saif al-Islam, it should build a proper court in Zintan, he said.


(Editing by Peter Graff)





Reuters: Top News



Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

ZINTAN, Libya (Reuters) – To his captors, the fate of Libya’s most prominent prisoner, the son of ousted dictator Muammar Gaddafi, can be sealed only in one place – in the small straggling mountain town where they have kept him locked up for nearly two years.



Reuters: Top News



Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

ZINTAN, Libya (Reuters) – To his captors, the fate of Libya’s most prominent prisoner, the son of ousted dictator Muammar Gaddafi, can be sealed only in one place – in the small straggling mountain town where they have kept him locked up for nearly two years.



Reuters: Top News



Insight: Libya"s turmoil revealed in feud for custody of Gaddafi"s son

Sunday, July 28, 2013

Insight: The poison pill in India"s search for cheap food




A farmer sprays pesticide containing monocrotophos on a paddy field at Mohanpur village, about 45 km (28 miles) west of Agartala, capital of India


1 of 2. A farmer sprays pesticide containing monocrotophos on a paddy field at Mohanpur village, about 45 km (28 miles) west of Agartala, capital of India’s northeastern state of Tripura July 25, 2013.


Credit: Reuters/Jayanta Dey






MUMBAI/NEW DELHI | Sun Jul 28, 2013 1:35am EDT



MUMBAI/NEW DELHI (Reuters) – Nearly a decade ago, the Indian government ruled out a ban on the production and use of monocrotophos, the highly toxic pesticide that killed 23 children this month in a village school providing free lunches under a government-sponsored program.


Despite being labeled highly hazardous by the World Health Organization (WHO), a panel of government experts was persuaded by manufacturers that monocrotophos was cheaper than alternatives and more effective in controlling pests that decimate crop output.


India, which has more hungry mouths to feed than any other country in the world, continues to use monocrotophos and other highly toxic pesticides that rich and poor nations alike, including China, are banning on health grounds.


Although the government argues the benefits of strong pesticides outweigh the hazards if properly managed, the school food poisoning tragedy underlined criticism such controls are virtually ignored on the ground.


According to the minutes, the 2004 meeting conducted by the Central Insecticides Board and Registration Committee, the Indian government body that regulates pesticide use, concluded that: “The data submitted by the industry satisfies the concerns raised…Therefore, there is no need to recommend the ban of this product.”


The minutes of the meeting can be read here: cibrc.nic.in/248rc.doc


Government scientists continue to defend the pesticide, and insist the decision to not ban it remains good.


Just weeks before the school tragedy in Bihar state, the Indian government advised farmers via text message to use monocrotophos to kill borer pests in mandarin fruits and rice, records on the agricultural meteorology division’s web site show.


“It is cost effective and it is known for its efficacy … some even call it a benevolent pesticide,” said T. P. Rajendran, assistant director general for plant protection at the Indian Council of Agricultural Research.


“I can say that pesticides currently permitted in the country are safe provided they are used as per specifications and guidelines. We have exhaustive and detailed guidelines. They need to be followed.”


A senior official directly involved in the decision-making on pesticide use said: “You have got to understand that all pesticides are toxic but they are essential for maintaining or increasing agricultural production.


“Can we afford to lose 15-25 percent of output? One cannot afford to lose such a large percentage of agricultural produce. The answer lies in judicious use.”


The official declined to be identified.


The WHO has cited a 2007 study that about 76,000 people die each year in India from pesticide poisoning. Many of the deaths are suicides made easy by the wide availability of toxic pesticides.


15 PAGES OF REGULATIONS


In the school tragedy, police suspect the children’s lunch was cooked in oil that was stored in a used container of monocrotophos.


The Indian government has issued 15 pages of regulations that need to be followed when handling pesticides – including wearing protective clothing and using a respirator when spraying. Pesticide containers should be broken when empty and not left outside in order to prevent them being re-used.


But in a nation where a quarter of the 1.2 billion population is illiterate and vast numbers live in far-flung rural districts, implementation is almost impossible. For instance, monocrotophos is banned for use on vegetable crops, but there is no way to ensure the rule is followed.


According to the WHO, swallowing 1,200 milligrams – less than a teaspoon – of monocrotophos can be fatal to humans. In 2009, it called for India to ban the product because of its extreme toxicity.


“It is imperative to consider banning the use of monocrotophos,” it said in a 60-page report. “The perception that monocrotophos is cheap and necessary, have prevented the product from being taken off the market” in India.


WHO officials say the school tragedy reinforces the dangers of the pesticide.


“We would advocate that countries restrict, ban, or phase out…those chemicals for which they can’t ensure that all aspects of use are safe,” said Lesley Onyon, WHO’s South-East Asia regional adviser for chemical safety. “If they can’t ensure safety, it’s our policy to say that these chemical or pesticides shouldn’t be used.”


Indian government officials refuse to address the WHO’s findings directly.


“We have to take decisions depending on our need, our priorities, and our requirements. No one knows these things better than us,” said the government source.


NATIONAL PRIORITY


For India, providing more food to its people is a national priority. According to the World Bank, nearly 400 million people in the country live on less than $ 1.25 per day.


Nearly half its children under five are malnourished.


The Bihar school where the children died was participating in the government’s midday meal program, aimed at giving 120 million school pupils a free lunch – both providing nutrition and encouraging education. India is also close to implementing an ambitious plan to provide cheap food to 800 million people.


Central to these efforts will be higher crop yields and managing costs.


According to government officials and manufacturers, monocrotophos is cheap and is also a broad spectrum pesticide that can only be replaced by four or five crop- or pest-specific pesticides. Even similar pesticides are much more expensive.


A 500 ml monocrotophos bottle sold by Godrej Agrovet, a subsidiary of Godrej Industries, is priced at 225 rupees ($ 3.75), while an alternative, Imidacloprid, in a bottle of 500 ml produced by Bayer, costs 1,271 rupees.


Monocrotophos is banned by many countries, including the United States, the European Union nations, China, and, among India’s neighbors, Pakistan. Sri Lanka only allows monocrotophos use for coconut cultivation.


One of the two companies that argued against the ban on monocrotophos in 2004 halted production five years later under pressure from the public in its home country, Denmark.


Cheminova, a unit of Auriga Industries, said it stopped producing monocrotophos in India in 2009 and converted its plant to produce a low-toxic fungicide.


“We decided to phase out monocrotophos because with many alternative products, we could not see any reason to have such a toxic product in a country like India,” Lars-Erik Pedersen, vice-president of Auriga Industries, told Reuters in Copenhagen.


“It was a big decision because it is one of the best-selling products in India,” he added.


The other manufacturer that made a presentation at the 2004 meeting was United Phosphorus, currently the biggest producer of the pesticide in the country.


Managing Director Rajju D. Shroff told Reuters that monocrotophos was “very harmless,” and hinted calls for a ban were aimed at helping multinationals sell more costly alternatives.


“Companies want to sell new pesticides. If they have monocrotophos, farmers will not change to new, expensive ones,” said Shroff, who attended the meeting as the head of the Crop Care Federation of India, a position he still holds.


NOT MOST TOXIC


Historically, India appears reluctant to ban pesticides. Monocrotophos isn’t the most toxic pesticide used in the country, according to the WHO’s classifications. Phorate, methyl parathion, bromadiolone and phosphamidon, all classified as extremely hazardous, are likewise registered for use.


And endosulfan – a substance so nasty the United Nations wants it eliminated worldwide – was banned only by a Supreme Court order in 2011. The decision came a few months after the chief minister of the southern state of Kerala, the top elected official, went on a day-long hunger fast to demand the ban.


According to media reports, over 1,000 people were killed and hundreds born deformed because of indiscriminate aerial spraying of endosulfan in Kasargod, a Kerala district.


Both production of monocrotophos and demand in India was higher in 2009/10 than in 2005/06, according to latest available government data. It accounted for about 4 percent of total pesticide use in 2009/10 and 7 percent of production.


Its share in total sales is about 2-3 percent now, according to the Pesticides Manufacturers & Formulators Association, which says it represents the industry on a national basis with over 250 members.


The Centre for Science and Environment, a leading environmental NGO in India, says the state of pesticide control in the country is deplorable and companies have great influence.


“The story on the ground is abysmal, it’s very disappointing,” said Amit Khurana, program manager in the CSE’s food safety and toxins unit.


“People still do not know how much of pesticide is to be used, which pesticide is to be used for which crop. The biggest influence for a farmer is the sales representative of the company … so there’s this sense of gross mismanagement at that level.”


The government has tried to introduce legislation for “more effective regulation of import, manufacture, export, sale, transport, distribution and use of pesticides” but the bill has languished in parliament since 2008.


India is no stranger to the dangers of pesticides. Besides the thousands killed each year, the country suffered the world’s worst industrial disaster when lethal methyl isocyanate gas leaked from a pesticide plant in the city of Bhopal in 1984, killing nearly 4,500 people.


But in the fields of rural India, pesticides like monocrotophos continue to be widely used.


“I have been using it for the last 10 years, I have a very good experience,” said Gaiyabhu Patil, a 56-year-old farmer who has just finished spraying monocrotophos on his 15-acre cotton crop in the western state of Maharashtra. “It is cheap and effective.”


Anil Dhole, a pesticide vendor in Koregaon, a district town southeast of Mumbai at the center of a sugarcane and cotton growing region, said few of his customers took health warnings seriously.


“Many farmers don’t take the necessary precautions while applying the pesticide. We do inform them about its toxic nature, but they take it casually,” he said “Farmers don’t even bother to cover their noses.”


($ 1 = 59.5650 Indian rupees)


(Additional reporting by Annie Bannerji and Mayank Bhardwaj in NEW DELHI, Kate Kelland in LONDON, Ole Mikkelsen in COPENHAGEN, Catherine Hornby in ROME and Rujun Shen in SINGAPORE; Editing by Raju Gopalakrishnan)





Reuters: Most Read Articles



Insight: The poison pill in India"s search for cheap food

Saturday, July 27, 2013

Insight - Obama and Syria: a trail of half-steps, mixed messages

WASHINGTON (Reuters) – As the Syrian civil war deepened and anti-government rebels struggled to unify their fractious forces, the White House early last year quietly convened an elite group of senior policymakers to advise President Barack Obama.


Reuters: Top News



Insight - Obama and Syria: a trail of half-steps, mixed messages

Wednesday, July 24, 2013

Insight: Jeans and shoes show criminal underbelly of China-EU trade




Containers are seen at Naples harbour July 13, 2013. Italy, a high-fashion Mecca and home to a culture obsessed with elegant appearances, was the top EU importer of low-cost Chinese clothing a decade ago, before Italian customs agents cracked down on the illicit practice of undervaluation. Picture taken July 13, 2013. To match Insight EU-CHINA/TRADE REUTERS/Tony Gentile


1 of 4. Containers are seen at Naples harbour July 13, 2013. Italy, a high-fashion Mecca and home to a culture obsessed with elegant appearances, was the top EU importer of low-cost Chinese clothing a decade ago, before Italian customs agents cracked down on the illicit practice of undervaluation. Picture taken July 13, 2013. To match Insight EU-CHINA/TRADE


Credit: Reuters/Tony Gentile






ROME | Wed Jul 24, 2013 12:47am EDT



ROME (Reuters) – The importer, a front man for the Calabrian mafia, tells the Chinese seller, who speaks fluent Italian and lives in Rome, that he wants to fix a lower price on the next shipment.


Their business is not drugs or weapons, but Chinese T-shirts, jeans and shoes. The buyer for the mob in Italy’s impoverished south wants to declare a falsely low price to reduce the customs duties he must pay because, as he says in a wiretap, “it goes to the state”.


This police recording offers a glimpse of the criminal underbelly of trade between the European Union and China, whose mind-boggling size – worth well over 1 billion euros a day – makes it fiendishly hard to police. Making matters worse, the EU is a single market of 300 million people but which has 28 national customs authorities with differing priorities.


Italy, a high-fashion Mecca and home to a culture obsessed with elegant appearances, was the top EU importer of low-cost Chinese clothing a decade ago, before Italian customs agents cracked down on the illicit practice of undervaluation.


Criminal groups trying to evade tariffs by lying about the real value of clothing sold in the EU, China’s biggest export destination, had singled out the southern Italian port of Naples as their entry point. There they were declaring pairs of jeans for as little as a euro each and T-shirts for 50 cents.


“The profit margins are high, the volumes are huge and the laws are lax,” said Rocco Burdo, the top intelligence officer at the Italian customs agency’s anti-fraud unit.


“Undervaluation is a grave threat to all of Europe, and so EU integration should be accelerated to make a unified fight against fraud across the region,” he told Reuters at his office’s headquarters on the outskirts of Rome.


After the crackdown led by Burdo, the savvy dealers simply re-routed goods through other EU ports such as Hamburg. Italy dropped to number six as importer of Chinese clothing in the region, but it became the top collector of textiles duties, customs data show.


National authorities collect customs duties, which vary but amount to 12 percent of the value of a pair of denim jeans or cotton T-shirts made in China, but hand three-quarters of the revenue to the EU’s central budget.


Europe has become a bonanza for trade gangs which exploit the free movement of goods within the EU by importing where there are fewest controls.


The increasingly sophisticated practice of undervaluation costs taxpayers billions in lost duties, and it is often accompanied by counterfeiting and value-added tax (VAT) evasion.


Undervaluation accounts for only a small fraction of overall customs fraud, and European officials stress that criminal gangs, not the Chinese government or state-owned companies, perpetrate this type of fraud.


Nevertheless, it illustrates broader trends in an often difficult trade relationship, where China’s aggressive business strategy has brought on more than 50 EU trade defense measures for unfair practices.


Duty-dodging is made easier by the Chinese strategy of controlling both production and distribution to maximize profit. Diverging opinions between EU countries on trade disputes, such as in a recent row over Chinese-made solar panels, also reflect an inconsistent approach to fighting undervaluation.


BOTTOM END


In Europe, this kind of fraud is conducted mostly by small companies headed by Chinese nationals living in Europe in collaboration with local companies which operate below the radar, the EU’s anti-fraud investigative body OLAF said.


“Valuation fraud mainly involves criminal organizations. It’s the bottom end of the market, and outside the normal commercial circuits,” David Murphy, head of the trade customs fraud unit at OLAF, told Reuters.


“For a fraud investigation agency, it’s very difficult to get to grips with it. When you do engage with it, it either melts away or moves somewhere else.”


OLAF is currently investigating six undervaluation cases, some already known to involve Chinese nationals, but most cases are tackled by local authorities.


China is the world’s biggest exporter, with EU imports from there worth 289.7 billion euros ($ 380.6 billion) last year, Eurostat data show. Total EU-China trade hit 433.6 billion.


EU imports of Chinese shoes and textiles, which are the goods targeted by criminal groups practising undervaluation fraud, were worth 36.4 billion euros in 2012.


Though many of the world’s most popular brands sell clothing made in China, the fraudsters who practise undervaluation mainly supply a more informal retail market.


In Rome’s growing Chinatown, there are as many as 10 clothing or shoe shops per city block, selling jeans for 20 euros, T-shirts for 10 and shoes for as little as 15.


But it is in open-air markets across the capital where Chinese dresses, jeans, shirts, underwear and shoes are sold at a frantic rate everyday, and it is through these kind of flea markets, common all over Europe, that the criminal groups make their biggest profits.


Also common in the open-air markets is the sale of counterfeit brand-name clothing at heavy discounts compared with the real thing, like rip-off Converse Chuck Taylor basketball sneakers for 20 euros.


Investigators say counterfeiting often accompanies valuation fraud to boost margins further, and in 2011 three quarters of all fake goods seized at European borders came from China.


“I was surprised at the volumes that you can shift through these markets,” OLAF’s Murphy said. “Initially I thought of it as kind of a minor problem, but in fact vast volumes go through there and vast profits are generated as well.”


There are no official estimates on how much EU taxpayers lose to overall customs fraud or to valuation fraud, but an investigation coordinated by OLAF offers some insight.


In conjunction with investigators in several EU states, OLAF dismantled two major Chinese organized crime groups operating out of Austria, Italy and Hungary in 2008 and 2009. Total losses in duties alone were put at 100 million euros, while VAT losses from national budgets amounted to 200 million euros.


As with counterfeiting, VAT avoidance is a common byproduct of valuation fraud. After paying falsely low customs duties at the port of entry, such as Hamburg in Germany, VAT payment is deferred to a country of final destination within the EU that maybe has no sea port, such as the Czech Republic or Austria, and the VAT is never paid, said Murphy.


Five Austrian forwarding agents acted on behalf of Chinese clients to shuttle clothing through customs, handing it over afterward to a network of Chinese distributors and retailers in several European countries.


When the Chinese company running the scam in Vienna was raided by authorities, they found sophisticated equipment used to copy and print false invoices, transport documents and certificates of origin, OLAF said.


“We’re talking about billions overall,” Murphy said, referring to customs fraud in general. “In my experience, I would say it’s much higher than it’s estimated.”


Italy offers an indicative number. The state collected 3.7 billion euros more in customs duties in the decade that followed its campaign against the fraud compared with what it collected in 2003, before the squeeze, even though volumes decreased.


EU FRAGMENTATION


After Italy, for many years Germany was the top importer of Chinese clothing, though it was never more than the third-biggest collector of duties on garments, data show.


Many of the same companies that were caught practising valuation fraud in Naples moved to Hamburg, Burdo said, citing investigations carried out by his office and prosecutors.


Now Britain is emerging as the main importer of Chinese textiles, though it is no more than the fifth-biggest collector of duties on the goods.


Some countries have taken time to wake up to the fraud and use computer systems to spot irregularities in customs declarations, letting the gangs off the hook. “As each country became aware of the problem and applied risk parameters in their automated declaration system, then the operators would move elsewhere. They are very, very mobile,” Murphy said.


Italy’s Burdo and OLAF’s Murphy say the EU could do more. “Europe, when taken together, is a significant player in the world economy and in world trade, but the EU countries do not play as a team, and this shows in trade with China,” Thomas Rosenthal, an economist who heads the research department at the Italy-China Foundation in Milan, told Reuters.


Customs fraud, and undervaluation in particular, is made easier because each country has its own customs agency, and because some countries are wary of imposing any kind of trade restrictions while others value them.


For instance Italy, the EU’s second-biggest manufacturer whose goods often compete with Chinese imports, favors curbs while Germany, the biggest and a major exporter to China, appears reluctant to confront an important client.


The EU needs to overcome such national interests. “There should be a further stimulus to political union to become a real global player,” Rosenthal said.


In Italy’s street markets, most of the Chinese clothing has been brought by truck from the ports of Rotterdam or Hamburg, where it entered the EU, Burdo said. “If there was a single customs service it might function better,” OLAF’s Murphy said.


(editing by David Stamp)





Reuters: Business News



Insight: Jeans and shoes show criminal underbelly of China-EU trade