SAN ANTONIO HUISTA, Guatemala — An American contractor went to a small town in the Guatemalan mountains with an ambitious goal: to ignite the local economy, and hopefully even persuade people not to migrate north to the United States.
Half an hour into his meeting with coffee growers, the contractor excitedly revealed the tool he had brought to change their lives: a pamphlet inviting the farmers to download an app to check coffee prices and “be a part of modern agriculture.”
Pedro Aguilar, a coffee farmer who hadn’t asked for the training and didn’t see how it would keep anyone from heading for the border, looked confused. Eyeing the U.S. government logo on the pamphlet, he began waving it around, asking if anyone had a phone number to call the Americans “and tell them what our needs really are.”
soared in 2019 and is on the upswing once more.
have risen, malnutrition has become a national crisis, corruption is unbridled and the country is sending more unaccompanied children to the United States than anywhere else in the world.
That is the stark reality facing Ms. Harris as she assumes responsibility for expanding the same kind of aid programs that have struggled to stem migration in the past. It is a challenge that initially frustrated her top political aides, some of whom viewed the assignment from Mr. Biden as one that would inevitably set her up for failure in the first months of her tenure.
Her allies worried that she would be expected to solve the entire immigration crisis, irked that the early reports of her new duties appeared to hold her responsible for juggling the recent surge of children crossing the border without adults.
linked to drug traffickers and accused of embezzling American aid money, the leader of El Salvador has been denounced for trampling democratic norms and the government of Guatemala has been criticized for persecuting officials fighting corruption.
Even so, Ms. Harris and her advisers have warmed to the task, according to several people familiar with her thinking in the White House. They say it will give her a chance to dive squarely into foreign policy and prove that she can pass the commander-in-chief test, negotiating with world leaders on a global stage to confront one of America’s most intractable issues.
critics denounced as unlawful and inhumane. Moreover, members of the current administration contend that Mr. Trump’s decision to freeze a portion of the aid to the region in 2019 ended up blunting the impact of the work being done to improve conditions there.
But experts say the reasons that years of aid have not curbed migration run far deeper than that. In particular, they note that much of the money is handed over to American companies, which swallow a lot of it for salaries, expenses and profits, often before any services are delivered.
Record numbers of Central American children and families were crossing, fleeing gang violence and widespread hunger.
independent studies have found.
“All activities funded with U.S.A.I.D.’s foreign assistance benefit countries and people overseas, even if managed through agreements with U.S.-based organizations,” said Mileydi Guilarte, a deputy assistant administrator at U.S.A.I.D. working on Latin America funding.
But the government’s own assessments don’t always agree. After evaluating five years of aid spending in Central America, the Government Accountability Office rendered a blunt assessment in 2019: “Limited information is available about how U.S. assistance improved prosperity, governance, and security.”
One U.S.A.I.D. evaluation of programs intended to help Guatemalan farmers found that from 2006 to 2011, incomes rose less in the places that benefited from U.S. aid than in similar areas where there was no intervention.
Mexico has pushed for a more radical approach, urging the United States to give cash directly to Central Americans affected by two brutal hurricanes last year. But there’s also a clear possibility — that some may simply use the money to pay a smuggler for the trip across the border.
The farmers of San Antonio Huista say they know quite well what will keep their children from migrating. Right now, the vast majority of people here make their money by selling green, unprocessed coffee beans to a few giant Guatemalan companies. This is a fine way to put food on the table — assuming the weather cooperates — but it doesn’t offer much more than subsistence living.
Farmers here have long dreamed of escaping that cycle by roasting their own coffee and selling brown beans in bags to American businesses and consumers, which brings in more money.
“Instead of sending my brother, my father, my son to the United States, why not send my coffee there, and get paid in dollars?” said Esteban Lara, the leader of a local coffee cooperative.
But when they begged a U.S. government program for funding to help develop such a business, Ms. Monzón said, they were told “the money is not designed to be invested in projects like that.”
These days, groups of her neighbors are leaving for the United States every month or two. So many workers have abandoned this town that farmers are scrambling to find laborers to harvest their coffee.
One of Ms. Monzón’s oldest employees, Javier López Pérez, left with his 14-year-old son in 2019, during the last big wave of Central American migration to the United States. Mr. López said he was scaling the border wall with his son when he fell and broke his ankle.
“My son screamed, ‘Papi, no!’ and I said to him, ‘Keep going, my son,’” Mr. López said. He said his son made it to the United States, while he returned to San Antonio Huista alone.
His family was then kicked out of their home, which Mr. López had given as collateral to the person who smuggled him to the border. The house they moved into was destroyed by the two hurricanes that hit Guatemala late last year.
Ms. Monzón put Mr. López in one of her relatives’ houses, then got the community to cobble together money to pay for enough cinder blocks to build the family a place to live.
While mixing cement to bind the blocks together, one of Mr. López’s sons, Vidal, 19, confessed that he had been talking to a smuggler about making the same journey that felled his father, who was realistic at the prospect.
“I told him, ‘Son, we suffered hunger and thirst along the way, and then look at what happened to me, look at what I lost,’” Mr. López said, touching his still-mangled ankle. “But I can’t tell him what to do with his life — he’s a man now.”
This morning, I am going to tell you another story about the C.D.C. and its approach to Covid-19 behavioral guidelines. It’s a story that highlights the costs of extreme caution.
When Dr. Rochelle Walensky, the C.D.C. director, appeared before a Senate committee this month and defended the agency’s description of how often Covid-19 is transmitted outdoors, she cited a single academic study.
She was responding to a question from Senator Susan Collins of Maine, who had asked why some C.D.C. guidelines seemed inconsistent with the available data. Collins quoted from that day’s edition of this newsletter and argued that the C.D.C. was exaggerating the risk of outdoor activities by claiming that “less than 10 percent” of Covid transmission occurred outside.
Anything close to 10 percent would mean that outdoor infections were a huge problem. Yet the true share appears to be closer to 0.1 percent.
a study published in The Journal of Infectious Diseases. The study was “a meta-analysis,” she explained, which means it synthesized data from other studies. “The topline result of all studies that were included in the systematic review said less than 10 percent of cases were transmitted outdoors,” she said.
Her answer made the study sound definitive. Walensky did not mention any other studies or offer any logical argument for why she believed outdoor transmission was a significant risk. She implied that the C.D.C. was simply listening to The Journal of Infectious Diseases, which, as she noted, is a top journal.
Later that day, one of the study’s authors posted several messages on Twitter, and the story got more complicated.
‘An amazing resource’
The tweets came from Dr. Nooshin Razani, an epidemiologist at the University of California, San Francisco. In them, she emphasized that the study’s results suggested that the share of Covid occurring outdoors was “much lower than 10 percent.” The central message of the paper, Razani wrote, was the relative safety of the outdoors:
in her testimony, had used the two terms interchangeably.)
Singapore construction workers who probably transmitted it in enclosed spaces.)
The actual share occurring outdoors is “probably substantially less than 1 percent,” Razani told me. “The outdoors is an amazing resource,” she added. “What we really should be focused on is how to transition more activities to be outdoors.”
Masks for all campers
Yet the C.D.C.’s guidance continues to treat outdoor activities as a major risk — as if the truth were closer to 10 percent than 0.1 percent.
The agency advises unvaccinated people to wear masks outdoors much of the time, and many communities still impose strict guidelines on outdoor activities. The C.D.C. has also directed virtually everyone attending summer camp this year — counselor or camper, vaccinated or not — to wear a mask at almost all times. The camp guidelines use the word “universal.”
It’s true that for many people, masks are a minor nuisance. For others, though, masks bring real costs. Some children find it harder to breathe while wearing one during, say, a game of soccer or tag. Many adults and children find it more difficult to communicate. That’s especially true for people without perfect hearing and for young children, both of whom rely heavily on facial movements to understand others.
has written, is often “like talking on your phone in a zone with weak cell service.”
No free lunch
For unvaccinated adults indoors or in close conversation outdoors, the costs of a mask are vastly lower than the risks from Covid. But the trade-offs are different in most outdoor settings, and they are different for children. The Covid risks for children are similar to those from a normal flu (as these charts show).
There does not appear to be much scientific reason that campers and counselors, or most other people, should wear a mask outdoors all summer. Telling them to do so is an example of extreme caution — like staying out of the ocean to avoid sharks — that seems to have a greater cost than benefit.
The C.D.C., as I’ve written before, is an agency full of dedicated people trying their best to keep Americans healthy. Walensky, a widely admired infectious-diseases expert, is one of them. Yet more than once during this pandemic, C.D.C. officials have acted as if extreme caution has no downsides.
Everything has downsides. And it is the job of scientific experts and public-health officials to help the rest of us think clearly about the benefits and costs of our choices.
THE LATEST NEWS
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Lives Lived: As a performer, writer and director, Robbie McCauley often put race at the center of her works. “Our nation is starving for the kinds of courageous conversation that Robbie and her work engendered,” a fellow artist said. McCauley died at 78.
ARTS AND IDEAS
baked feta pasta and dalgona coffee — as well as a new generation of cooking stars who are largely self-taught, preparing meals in their home kitchens.
Within 24 hours of posting his first TikTok in 2019, Eitan Bernath, now 19, had tens of thousands of followers. His upbeat and approachable food videos have since earned him over a million more, and he has three full-time employees, as well as a gig as a resident culinary expert on “The Drew Barrymore Show.”
Other up-and-coming food creators are making six figures through the app and sponsorships, often using TikTok fame to launch cookware lines, cookbooks and more.
Read Taylor Lorenz’s full story. — Sanam Yar, a Morning writer
This obituary is part of a series about people who have died in the coronavirus pandemic. Read about others here.
For nearly four decades, William R. Harris devoted his career to safeguarding his fellow citizens.
As an international lawyer and a sought-after consultant, he drafted treaties to prevent the proliferation of nuclear weapons and reduce the risk of accidental war. He modeled a framework for the government to continue functioning during a national catastrophe. He helped extend Daylight Saving Time to conserve fuel and focused officials on protecting the electrical grid from digital sabotage.
He practiced what he preached, too, making sure to get his first vaccination for the coronavirus in early February, as soon as he was eligible and the vaccine was available. He completed the regimen by the end of the month.
In late March, though, his family said, he received a jarring diagnosis: Covid-19. Mr. Harris also had chronic lymphocytic leukemia, and family members said that a few weeks after learning that he had Covid, he read an article in a scientific journal suggesting that the vaccine might not be fully effective for people with that type of leukemia.
The New York Times last month.
No vaccine is 100 percent effective, and some so-called breakthrough infections can be expected, even in healthy people who have been fully vaccinated. But those cases are rare. As of April 26, the Centers for Disease Control and Prevention reported 9,245 breakthrough cases, out of 95 million fully vaccinated Americans; 132 people died.
In a eulogy on Facebook, Mr. Harris’s daughter Darcy R. Harris described him this way: “As an international lawyer and policy wonk, his work spanned arms control treaties and verification, energy policy, space law. He was a consummate researcher, an early adopter, an innovator. On top of that, he was always working for free and helping others out.”
Dr. William A. Horwitz and Dr. Henriette Klein, both of whom were professors of clinical psychiatry at Columbia University.
He attended the Dalton School in Manhattan and, after graduating from the Choate School, now Choate Rosemary Hall, in Wallingford, Conn., earned a bachelor’s degree in history from Harvard College in 1962 and a law degree from Harvard Law School in 1966.
In 1968, he married Elizabeth Jones. Along with his wife and their daughter Darcy, he is survived by another daughter, Rebecca Harris Deane; a son, William Proctor Harris; four grandchildren; and his sister, Susan Harris Molnar.
That’s changing. The Biden administration and its allies are pushing the notion that caring for children — and the sick and the elderly — is just as crucial to a functioning economy as any road, electric grid or building. It’s human infrastructure, they argue, echoing a line of thought long articulated by feminist economists (and often ignored).
President Biden included money for home-based care for the elderly and the disabled under the umbrella of infrastructure, as part of a $2 trillion package he proposed in March. The next month, he proposed more funding for paid family leave, universal pre-K and $225 billion for child care.
The ambitious legislation is going to face huge hurdles in Congress, but Dr. Folbre, now 68, is both cautiously optimistic and heartened by the culture shift: “I often say to myself I’m glad I lived this long so I can say maybe I had a point.”
Every snag in the system
Mariel Mendez and her husband, David, each the first in their immigrant families to earn college degrees and find rewarding careers, assumed they’d rely on high-quality child care to make everything work. She holds a master’s in public health from Columbia University and works at a nonprofit near Kent, Wash., where they live; he has a master’s in education policy and works as a coach for elementary school teachers.
Yet, now they’re debating if one of them should stop working altogether.
Over the past year, the Mendezes have cycled through four different child-care arrangements for Milea, their 2-and-a-half-year-old daughter, starting with an overcrowded center they felt was unsafe, then a back-and-forth with an in-home day care struggling to survive through the pandemic, and a stressful marathon at home managing remote work and never-ending toddler duty.
“We’re starting to think for our mental health and for our relationship as a family, does it make more sense for one of us to step down, shift to part time?” said Ms. Mendez, 28, who is expecting another baby in June. The prospect of an infant, a full-time job and a still uncertain child-care arrangement is overwhelming. “I never thought I’d be here. That we would all be here,” she said.
But in a sense it was inevitable that they would be, since they were headed toward a cliff — with no bridge spanning it.
As American companies prepare to bring large numbers of workers back to the office in the coming months, executives are facing one of their most delicate pandemic-related decisions: Should they require employees to be vaccinated?
Take the case of United Airlines. In January, the chief executive, Scott Kirby, indicated at a company town hall that he wanted to require all of his roughly 96,000 employees to get coronavirus vaccines once they became widely available.
“I think it’s the right thing to do,” Mr. Kirby said, before urging other corporations to follow suit.
It has been four months. No major airlines have made a similar pledge — and United Airlines is waffling.
herd immunity has slipped as the pace of vaccinations has slowed.
But making vaccinations mandatory could risk a backlash, and perhaps even litigation, from those who view it as an invasion of privacy and a Big Brother-like move to control the lives of employees.
survey of 1,339 employers conducted by Arizona State University’s College of Health Solutions and funded by the Rockefeller Foundation, 44 percent of U.S. respondents said they planned to mandate vaccinations for their companies. In a separate poll of 446 employers conducted by Willis Towers Watson, a risk-management firm, 23 percent of respondents said they were “planning or considering requiring employees to get vaccinated for them to return to the worksite.”
two hours of pay for each dose they receive, while emphasizing it would not make doses mandatory. Target is offering a $5 coupon to all customers and employees who receive their vaccination at a CVS at Target location.
Supreme Court ruled about a century ago that states could require vaccinations for children attending public school. And universities like Rutgers have instituted mandatory Covid-19 vaccinations.
But the pandemic brings up a host of complications that companies typically prefer to avoid, involving the private lives, religious preferences and medical histories of employees, such as whether an employee is pregnant, breastfeeding or immuno-compromised, information they may not want to reveal.
Major union groups, like the A.F.L.-C.I.O., have not aggressively pushed the issue either. They are facing dueling forces — standing up for individual worker’s rights on the one hand and protecting one another on the other. Unions have also been arguing for stronger workplace safety measures, efforts that could be complicated by companies’ arguing that mandatory vaccinations reduce the need for such accommodations. The return to work protocols negotiated between the Alliance of Motion Picture & Television Producers and Hollywood’s unions, for instance, will not include mandatory vaccinations.
“There are going to be some people who may have legitimate reasons for not getting the vaccine or for not wanting to talk about it,” said Carrie Altieri, who works in communications for IBM’s People and Culture business. “It’s not an easy issue at this point.” IBM is working with New York State on a digital passport linking a person’s vaccination records to an app to show businesses, like performance venues, that may require vaccination. It is not, though, requiring vaccinations for its employees.
already struggling to hire workers, mandating vaccinations could make hiring even more difficult. And there are questions of logistics and execution. How can companies confirm the veracity of those who say they’ve been vaccinated?
Companies may need to hire additional staff, potentially with medical training, to handle such tasks, which could saddle businesses — particularly small ones — with burdensome costs.
Vivint, a home security company based in Utah with 10,000 employees, began offering vaccines in its on-site clinic this week, after the state approved the company to distribute 100 shots a week to its staff. It paid $3,000 for the necessary medical-grade freezer.
“We’re not requiring employees to get vaccinated, but we’re highly encouraging it,” said Starr Fowler, senior vice president for human resources. “For a lot of our employees, particularly those that are younger, the easier that we make it for them, the more likely they’re going to do it.”
Salesforce is introducing a policy in certain U.S. offices, including Salesforce Tower in San Francisco, where up to 100 fully vaccinated employees can volunteer to work on designated floors. The New York Stock Exchange issued a memo to trading firms saying they would be allowed to increase their staff on the floor, provided all the employees have been vaccinated.
The Equal Employment Opportunity Commission issued guidance in December stating that employers were indeed legally permitted to require employees to be vaccinated before they return to offices. But the threat of litigation still looms.
plans to open its offices on May 17 on a voluntary basis, said it strongly encouraged vaccines for employees — barring any religious or health restrictions — but would not require them. A spokeswoman for Goldman Sachs, which has not guided employees either way, declined to comment.
One potential path for companies seeking a middle ground is to mandate the shots only for new hires. Still, there is a fine line between encouraging and requiring shots — sometimes resulting in conflicting messages to employees.
The investment bank Jefferies sent a memo to employees in early February stating “verification of vaccination will be required to access the office.” On Feb. 24 came a follow-up memo. “We did not intend to make it sound as if we are mandating vaccines,” it said.
Reporting was contributed by Rebecca Robbins, Sapna Maheshwari, Kellen Browning, Niraj Chokshi and Eshe Nelson.
A better approach would be for a trusted figure to address the root cause of the hesitancy — fear, mistrust, misconceptions, ease of access or a desire for more information, said Mary Politi, an expert in health decision making and health communication at Washington University in St. Louis.
People often need to see others in their social circle embracing something before they are willing to try it, Dr. Politi said. Emphasizing the benefits of vaccination to their lives, like seeing a family member or sending their children to school, might be more motivating than the nebulous idea of herd immunity.
“That would resonate with people more than this somewhat elusive concept that experts are still trying to figure out,” she added.
Though children spread the virus less efficiently than adults do, the experts all agreed that vaccinating children would also be important for keeping the number of Covid cases low. In the long term, the public health system will also need to account for babies, and for children and adults who age into a group with higher risk.
Unnerving scenarios remain on the path to this long-term vision.
Over time, if not enough people are protected, highly contagious variants may develop that can break through vaccine protection, land people in the hospital and put them at risk of death.
“That’s the nightmare scenario,” said Jeffrey Shaman, an epidemiologist at Columbia University.
How frequent and how severe those breakthrough infections are have the potential to determine whether the United States can keep hospitalizations and deaths low or if the country will find itself in a “mad scramble” every couple of years, he said.
“I think we’re going to be looking over our shoulders — or at least public health officials and infectious disease epidemiologists are going to be looking over their shoulders going: ‘All right, the variants out there — what are they doing? What are they capable of?” he said. “Maybe the general public can go back to not worrying about it so much, but we will have to.”
Andrew here. Yesterday’s guilty verdict against George Floyd’s murderer, a former Minneapolis police officer, was a symbol of something profound: a demonstrable shift in the way this country, increasingly supported by business, has strived for civil rights.
As we ponder the meaning of this decision, it is worth recalling a moment in 1965, in the middle of that era’s civil rights movement.
A Wall Street bond firm, C.F. Securities, told Alabama that it would “no longer buy or sell bonds issued by the state or any of its political subdivisions.” Gov. George C. Wallace, who objected to desegregation, had said the state shouldn’t pay for the National Guard to protect Martin Luther King Jr. and protesters in the Selma-to-Montgomery march.
The investment firm’s executive vice president, Donald E. Barnes, wrote to the governor that his failure “to protect the citizens of Alabama in their exercise of constitutional rights” amounted to “discouragements to Alabama’s economic future.” He insisted that the move was based on economic risk, but the letter made clear it was about more than that.
paid time off on Juneteenth; the N.B.A. emblazoned the words “Black Lives Matter” on courts; Netflix steered its cash into local banks that serve Black communities; Wall Street banks announced programs worth billions to support Black communities; and just last week, in perhaps the greatest demonstration of the new responsibility business is feeling, 700 companies and executives signed a letter opposing laws that make it harder for people to vote.
“The murder of George Floyd last Memorial Day felt like a turning point for our country. The solidarity and stand against racism since then have been unlike anything I’ve experienced,” Brian Cornell, the C.E.O. of Target, wrote in a note to employees of the Minneapolis-based retailer yesterday. “Like outraged people everywhere, I had an overwhelming hope that today’s verdict would provide real accountability. Anything short of that would have shaken my faith that our country had truly turned a corner.”
You know what? Justice is good for business.
HERE’S WHAT’S HAPPENING
The European Super League has collapsed. Plans to create a closed competition of top soccer clubs fell apart yesterday when six English teams withdrew, bowing to outrage from fans and threats by lawmakers. Shortly after, an official at the Super League said the project had been suspended, ending an effort to upend soccer’s multibillion-dollar economics.
outweigh a small risk of blood clots, but wants a warning added. U.S. regulators will decide whether to end a pause on the vaccine in the coming days.
Goldman Sachs releases worker diversity data. The Wall Street bank disclosed for the first time how many of its senior U.S. executives are Black: 49 out of more than 1,500. Banks agreed last year to publish more information about their work forces; Morgan Stanley has an even smaller share of Black executives than Goldman.
Apple’s new products raise competition concerns. The tech giant unveiled new iPads and iMacs, and a revamped podcast app. But its new AirTags, which attach to items to help find them, was criticized by the C.E.O. of Tile, which makes a similar product. Apple also said it would roll out new iOS privacy features — criticized by Facebook and other app makers — next week.
Understanding the ‘antimonopolist’ Lina Khan
Lina Khan’s nomination to the Federal Trade Commission is one of the clearest signs of progressive influence in the Biden administration. A Columbia University scholar who worked on a major congressional report about Big Tech and antitrust last year, Ms. Khan is a star in the constellation of competition law experts known as “antimonopolists.” Her confirmation hearing with the Senate Commerce Committee is today.
power of internet giants, which could win her some conservative support. Having a “strong” perspective probably isn’t an obstacle to confirmation, Mr. Hoffman said.
“Antimonopoly is more than antitrust,” Ms. Khan wrote in 2018. It shifts away from a “consumer” take on mergers managed by antitrust agencies to a broader approach using “policy levers” across the government and keeps workers, voters, the environment and more in mind.
Big Tech will be a likely focus at the hearing. But this would be a “disservice” to Ms. Khan, according to Mr. Hoffman. “At the F.T.C., a lot of the agenda is reactive,” he said. Companies file merger paperwork and regulators respond, whatever the industry. Ms. Khan has a broad perspective on competition law, Mr. Hoffman said, and today would be “a fair time” to ask what “objective standards” she’d apply.
“You have to have some morals.”
— Ari Emanuel, the outspoken C.E.O. of the entertainment conglomerate Endeavor, speaking in a New Yorker profile about returning an investment from Saudi Arabia after the killing of Jamal Khashoggi. Separately, Endeavor disclosed yesterday that it hopes to be valued at more than $10 billion in an I.P.O.
These ‘Roaring Twenties’ have railroad battles, too
Canadian National Railway yesterday offered to buy Kansas City Southern for $33.7 billion, topping a $29 billion bid last month by its rival Canadian Pacific. They’re jockeying over the chance to create the first railroad connecting major ports from Canada to Mexico. The bidding war reflects bullishness about an industry poised for growth if a post-pandemic boom ushers in this generation’s “Roaring Twenties.”
antitrust concerns made the counterbid “illusory and inferior.” Kansas City Southern said it would evaluate the new bid in accordance with its agreement with its original suitor.
mixed reception from freight shippers, who suffered in the last round of consolidation. And we haven’t yet heard from Senator Amy Klobuchar, who heads the antitrust subcommittee and represents key industrial interests in Minnesota.
Giving Coinbase a run for its (digital) money
The public listing of Coinbase, the largest crypto exchange in the U.S., generated a wave of excitement that competitors aim to ride. Among them is Binance.US, the third-ranked domestic crypto exchange, which yesterday named Brian Brooks — formerly Coinbase’s chief counsel and most recently acting U.S. comptroller of the currency — as C.E.O., beginning in May. “There’s a lot of buzz about my former employer, which is well-deserved,” Mr. Brooks told DealBook about Coinbase. “But it’s in everybody’s best interest if there’s more competition.”
Mr. Brooks’ first task is building trust with regulators. He says “managing reputation” is his biggest concern. Binance has shifted its operations throughout Asia since it was founded in 2017, and some say it played fast and loose with rules. The C.F.T.C. was reportedly investigating the company for allowing U.S.-based customers to trade crypto derivatives, which is banned (the agency declined to comment). Mr. Brooks insists he did “a lot” of due diligence on his new employer and dismisses “loose talk” about the exchange flouting regulations.
Binance’s group C.E.O., CZ Zhao, says he embraces regulation. Hiring Mr. Brooks is one way the company is trying to make the point. Binance also hired Max Baucus, the former Montana senator and ambassador to China, last month, along with other former regulators.
Binance.US sees potential to lead in undeveloped areas of the American crypto landscape, like derivatives and lending. Mr. Brooks said the company can learn from competitors like Coinbase and Kraken — and challenge them. That is, if he can convince regulators to bless its efforts to bring crypto into the financial mainstream, a preoccupation of players across the industry.
JPMorgan wants to end banker burnout, for real this time
Yesterday, JPMorgan Chase’s co-heads of investment banking, Jim Casey and Viswas Raghavan, announced policies aimed at improving working conditions amid record deal volume and banker burnout. The company has attempted similar things before. DealBook spoke with Mr. Casey about the latest plan — and whether this one will stick.
JPMorgan has recently hired 65 analysts and 22 associates, and plans to add another 100 junior bankers and support staff, Mr. Casey said. It’s targeting bankers at rival firms, as well as lawyers and accountants interested in a career switch.
similar efforts to protect junior bankers’ hours in 2016, but “it wasn’t stringently enforced,” Mr. Casey said. Why not? “Laziness.” This time, junior bankers’ hours and feedback will figure in senior manager performance evaluation and compensation.
“It’s not a money problem,” Mr. Casey said, so there won’t be one-time checks or free Pelotons after a rush.Junior bankers will get their share of the record $3 billion in fees JPMorgan earned in the first quarter.
Some things won’t change. Because banking is a client-service job, managers sometimes have limited control over workloads and hours. “You might do 100 deals a year, but that client only does one deal every three years,” Mr. Casey said.
How the bank will measure success: “Ask me what our turnover ratio has gone to and I will tell you,” Mr. Casey said. The goal, he said, is “lower.”
THE SPEED READ
Politics and policy
Senator Bernie Sanders is co-sponsoring a bill that would impose a financial transaction tax on Wall Street to drastically expand tuition-free access to community colleges and trade schools. (CNBC)
Twelve megadonors accounted for nearly $1 of every $13 raised by federal candidates and political groups since 2009, a new study found. (NYT)
Best of the rest
The Sacklers, the family that founded the maker of OxyContin, are worth about $11 billion, according to documents released by a Congressional committee. (WSJ)
“Behind the Mysterious Demise of a $1.7 Billion Mutual Fund.” (WSJ)
Amazon is opening a hair salon in London. It isn’t called Prime Cuts. (WaPo)
We’d like your feedback! Please email thoughts and suggestions to email@example.com.
The pandemic abruptly slowed the global march of coal. But demand for the world’s dirtiest fuel is forecast to soar this year, gravely undermining the chances of staving off the worst effects of global warming.
Burning coal is the largest source of carbon dioxide emissions, and, after a pandemic-year retreat, demand for coal is set to rise by 4.5 percent this year, mainly to meet soaring electricity demand, according to data published Tuesday by the International Energy Agency, just two days before a White House-hosted virtual summit aimed at rallying global climate action.
“This is a dire warning that the economic recovery from the Covid crisis is currently anything but sustainable for our climate,” Fatih Birol, the head of the agency, said in a statement.
dropped to its lowest level in a decade in 2019. And, over the last 20 years, more coal-fired power plants have been retired or shelved than commissioned. The big holdouts are China, India and parts of Southeast Asia, but, even there, coal’s once-swift growth is nowhere as swift as it was just a few years ago, according to a recent analysis.
In some countries where new coal-fired power plants were only recently being built by the gigawatts, plans for new ones have been shelved, as in South Africa, or reconsidered, as in Bangladesh, or facing funding troubles, as in Vietnam. In some countries, like India, existing coal plants are running way below capacity and losing money. In others, like the United States, they are being decommissioned faster than ever.
where coal use is growing, the pace of growth is slowing.
In South Africa, after years of lawsuits, plans to build a coal-fired power station in Limpopo Province were canceled last November.
In Kenya, a proposed coal plant has languished for years because of litigation. In Egypt, a planned coal plant is indefinitely postponed. In Bangladesh, Chinese-backed projects are among 15 planned coal plants that the government in Dhaka is reviewing, with an eye to canceling them altogether.
Pakistan, saddled by debts, announced a vague moratorium on new coal projects. Vietnam, which is still expanding its coal fleet, scaled back plans for new plants. The Philippines, under pressure from citizens’ groups, hit the pause button on new projects.
“Broadly speaking, there’s growing opposition against coal and a lot more scrutiny right now,” said Daine Loh, a Southeast Asia power sector energy specialist at Fitch Solutions, an industry analysis firm. “It’s a trend — moving away from coal. It’s very gradual.”
Money is part of the problem. Development banks are shying away from coal. Japan and Korea, two major financiers of coal, have tightened restrictions on new coal projects. Japan is still building coal plants at home, rare among industrialized countries, though Prime Minister Yoshihide Suga said in October that his country would aspire to draw down its emissions to net-zero by 2050.
Australia continue to mine their abundant coal deposits. Perhaps most oddly, Britain, which is hosting the next international climate talks, is opening a new coal mine.
And then there are the world’s biggest coal consumers, China and India.
China’s economy rebounded in 2020. Government stimulus measures encouraged the production of steel, cement and other industrial products that eat up energy. Coal demand rose. The capacity of China’s fleet of coal-fired power plants grew by a whopping 38 gigawatts in 2020, making up the vast majority of new coal projects worldwide and offsetting nearly the same amount of coal capacity that was retired worldwide. (One gigawatt is enough to power a medium-sized city.)
Coal’s future in China is at the center of a robust debate in the country, with prominent policy advisers pressing for a near-moratorium on new coal plants and state-owned companies insisting that China needs to burn more coal for years to come.
to remain open, and it is seeking private investors to mine coal. If India’s economy recovers this year, its coal demand is set to rise by 9 percent, according to the I.E.A.
But even India’s coal fleet isn’t growing as fast as it was just a few years ago. On paper, India plans to add some 60 gigawatts of coal power capacity by 2026, but given how many existing plants are operating at barely half capacity, it’s unclear how many new ones will ultimately be built. A handful of state politicians have publicly opposed new coal-fired power plants in their states.
How much more coal India needs to burn, said Ritu Mathur, an economist at The Energy & Resources Institute in New Delhi, depends on how fast its electricity demand grows — and it could grow very fast if India pushes electric vehicles. “To say we can do away with coal, or that renewables can meet all our demand,” Dr. Mathur said, “is not the story.”
nearly one-fourth of all energy worldwide.
Its proponents argue that gas, which is less polluting than coal, should be promoted in energy-hungry countries that cannot afford a rapid scale-up of renewable energy. Its critics say multibillion dollar investments in gas projects risk becoming stranded assets, like coal-fired power plants already are in some countries; they add that methane emissions from the combustion of gas are incompatible with the Paris Agreement goal of slowing down climate change.
in Vietnam. Gas demand is growing sharply in Bangladesh, as the government looks to shift away from coal to meet its galloping energy needs. Ghana this year became the first country in sub-Saharan Africa to import liquefied natural gas. And the U.S. Agency for International Development has been promoting gas as a way to electrify homes and businesses across Africa.
And there’s the rub for the Biden administration: While it has set out to be a global climate leader, it has not yet explained its policy on advancing gas exports — particularly on the use of public funds to build gas infrastructure abroad.
“There’s fairly strong consensus around coal. The big question is around gas,” said Manish Bapna, acting president of the World Resources Institute. “The broader climate community is starting to think about what a gas transition looks like.”
Julfikar Ali Manik and Hiroko Tabuchi contributed reporting.
ROME — To most eyes, the scruffy, sun-faded ship that left Venice for Sicily last week might have looked like a junkyard-ready wreck.
Instead, as the ship embarked upon what may be its final voyage, via barge and tugboat, and arrived in Sicily on Tuesday, others were hoping it would become a monument to the devastating toll exacted by the trafficking of people across the Mediterranean from Africa to Europe by unscrupulous operators.
The ship, the relic of the deadliest wreck in the Mediterranean in living memory, is a symbol of contemporary migration in Europe that has become part of its cultural heritage, said Maria Chiara Di Trapani, an independent curator working on future projects for the vessel.
On April 18, 2015, the unnamed ship — originally built as a fishing vessel for a crew of around 15 — capsized off the coast of Libya, becoming the watery grave for the more than 1,000 people, many from Mali, Mauritius and the Horn of Africa, crammed onboard. Only 28 passengers survived.
Missing Migrants Project run by the International Organization for Migration has recorded a minimum of 12,521 deaths or disappearances during migration across the Central Mediterranean route.
The ship sank after colliding with a Portuguese freighter that had come to its assistance.An analysis of the shipwreck has been treated by migration activists as a case study on the perils of inexpert assistance at sea. The ship was later used as evidence in a case against the Tunisian captain who piloted the ship and in 2018 was convicted of human trafficking.
“The story of the boat is very complex, involving many people,” said Enzo Parisi, the spokesman for the Comitato 18 Aprile, a citizens’ group in Augusta, Sicily, that wants the boat to become a monument, “a testimony to tragedies at sea.”
In June 2016, the Italian government decided to raise the wreck 1,200 feet from the bottom of the sea to identify the victims. The ship was taken to a naval base in Augusta, and the victims were extracted.
laboratory at the University of Milan for the laborious task of cataloging and possible identification.
The ship’s destiny, at that point, was to head to the scrap yard, like hundreds of ships that have been seized by Italian authorities.
But the wreck’s symbolic power had become apparent. In 2019, supported by the Comitato 18 Aprile, Augusta’s municipal council was granted custody of the ship. The region lobbied to have it declared a monument of cultural interest and the committee came up with proposals for a memorial that would have the ship as the centerpiece.
“As a seaport, Augusta has always been welcoming,” said Giuseppe Di Mare, the mayor of the Sicilian city, which is a first landing spot for many migrants rescued in the Mediterranean, before they are processed and shunted off to other Italian cities. Because of the coronavirus, the sea rescues now include an interim stop on quarantine ships, and currently there are two such ships in Augusta’s harbor.
“Barca Nostra,” or “Our Ship” in Italian, the vessel was presented at the art exhibit as a “monument to contemporary migration” and restrictions on personal freedoms.
2019 documentary about the disaster and the attempts to identify the victims, Ms. Mirto counted headstones in a cemetery that read: “Unknown Immigrant Deceased in the Strait of Sicily on 18.4.2015.”
The project to identify victims continues, sponsored by Italy’s special commissioner for missing persons. Dr. Cattaneo, the forensicpathologist who is responsible for the university laboratory in Milan, said that funding shortages had hampered the work, and that, so far, only six victims had been identified using their methodology, which involves comparing the DNA extracted from the victims to the DNA of family members, as well as anthropological and dental traits.
She is hopeful that progress will be made this year, as the university is now working with other academic institutions, as well as Italian law enforcement authorities, but she cautioned that the condition in which researchers had found the bodies after a year under water made everything “extremely complex.”
The International Committee of the Red Cross and other national affiliates have also been involved in identifying the victims of the tragedy. They have adopted a different, complementary, approach, attempting to draft a list of the passengers onboard by cross-referencing the accounts of survivors, witnesses, relatives, friends, as well as from the objects that were recovered from the ship. Currently, they are calling some of the nearly 1,500 phone numbers — which have been tracked to 56 countries — that were found in the wreckage in hopes of gleaning new clues.
have died in the first months of 2021.
The ship will now undergo urgent maintenance, after two years exposed to a north Italian climate.
The city of Augusta has envisioned placing the ship in what the authorities describe as a “Garden of Memory,” that “will have to be in the open, because that boat gives a sense of the sea, the air, the skies. To enclose it in a building would clash with its’ story,” said Mr. Di Mare, the mayor.
“Certainly, the ship has attained an international dimension and we want this garden to become a place of reflection for the world, so that all people can ponder,” he said.
Before the pandemic, Carla Huanca and her family were making modest but meaningful improvements to their cramped apartment in the slums of Buenos Aires.
She was working as a hairstylist. Her partner was tending bar at a nightclub. Together, they were bringing home about 25,000 pesos ($270) a week — enough to add a second story to their home, creating extra space for their three boys. They were about to plaster the walls.
“Then, everything closed,” said Ms. Huanca, 33. “We were left with nothing.”
Amid the lockdown, the family needed emergency handouts from the Argentine government to keep food on the table. They resigned themselves to rough walls. They shelled out for wireless internet service to allow their children to manage remote learning.
“We have spent all of our savings,” Ms. Huanca said.
The global economic devastation that has accompanied Covid-19 has been especially stark in Argentina, a country that entered the pandemic deep in crisis. Its economy shrank by nearly 10 percent in 2020, marking the third straight year of recession.
wealth taxes to finance the costs of the pandemic — a measure that Argentina adopted late last year.
The fund’s analysis of Argentina’s debt picture, and its conclusion that the burden was not sustainable, set the groundwork for a settlement with international creditors last year. Investors ultimately agreed to write down the value of some $66 billion in bonds, overcoming the opposition of the world’s largest asset manager, BlackRock.
The Argentine government is proceeding on the assumption that it can secure a deal from the fund that will allow the country to significantly postpone its debts, providing relief from looming payments — $3.8 billion this year, and more than $18 billion next year — without strict requirements that it cut spending.
“The I.M.F. leadership has made clear that this is the framework,” said Joseph E. Stiglitz, a Nobel laureate economist at Columbia University in New York. The new arrangement will reflect “the new I.M.F.,” he added, “recognizing that austerity doesn’t work, and recognizing their concerns about poverty.”
antagonized the poor with cuts to government programs. His debt binge combined with another recession forced the country to submit to the ultimate humiliation — asking the I.M.F. for a hand.
In elections two years ago, voters rejected Mr. Macri and installed Mr. Fernandez — a Peronist. Some suggested that Mr. Fernandez might stake out an acrimonious position with creditors, including the I.M.F. But the Fernandez administration has proved pragmatic, winning the confidence of the I.M.F., while maintaining relief for the poor.
“We have to avoid following the patterns of the past that did so much damage,” the economy minister, Mr. Guzmán, said in an interview. “We want to be constructive, and resolve these problems in a way that works.”
The most pernicious problem remains inflation, a reality that assails businesses and households, adding to the strain on the poor through higher food prices.
In major economies like the United States, central banks conventionally respond to inflation by lifting interest rates. But that snuffs out economic growth — not a tenable proposition in Argentina, where the central bank already maintains interest rates at the stultifying level of 38 percent.
Brazil. Her partner’s employer reduced his hours, cutting his pay in half.
“I’m scared about what could happen now,” she said. “Everyone is very worried.”