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tv   Talk to Al Jazeera Martin Guzman  Al Jazeera  January 24, 2022 5:30am-6:01am AST

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no longer prime minister italy's recovery could go off track. the many bold can be president of the republic while as abram, you're a derived, he is not easily replaceable. so ease, much more useful as a grammar be election held in parliament will likely go on for several rounds until a candidate gains enough votes. whoever wins will have to try and help italy avoid political crises as it tries to solidify a sustainable recovery from the pandemic. adarine al jazeera rome ah the sounds is there. these are the top stories. authorities implicated also have declared an overnight curfew after a day of violence. soldiers, newton needed several army camps, but the government denied that there was an attempted to us is told that citizens in ukraine and families of its give embassy staff to leave the country. the state department is wanting military action by russia could come at any time in the us
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will not be able to evacuate americans over the weekend, the u. s. and to blame those of weapons and ammunition to ukraine. the $200000000.00 shipment of so called lethal aid is aimed at strengthening caves, defense capabilities, as russian troops mass on ukraine's border. moscow denies and its planning and military offensive. mike, hannah has moved from washington d. c. the state department personnel also made clear one very important point that there has been no change in the situation in recent days, which has led to this upgraded travel notice at making very clear that the decision to do so now was not in response to any specific that threat, rather the broad threat posed by a russian incursion, which has been in place for a period of time. now the state department officials also say that a u. s. nationals in ukraine should start making arrangements should they wish to leave?
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taliban officials are in talks with western powers in norway. the focusing on afghanistan is worsening. humanitarian crisis and reports of human rights abuse. senior taliban members are expected to meet officials from several nato countries, including u. s. representatives. the wealth of organizations, europe, director, says there are further signs. the ami con variant is moving the pandemic into a new phase. he said that he is optimistic, that poet 19 is shifting from a pandemic to a more manageable endemic illness. like the flu, scientists in israel say a 4th shot of flies is called the 19 vaccine triples protection from severe illness . for people over the age of 60. they also say the age group comes twice as resistant to infection, that the additional booster will not provide complete immunity. as that line sinews continues on al jazeera, after talk to al jazeera lazarus, the home of jesus christ, his long drawn pilgrims and visitors from around the world. hundreds of years,
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it's old city rang to the sounds of shopkeepers and crops. people. this entry though, sounds of dwindled, a handful of businesses struggling on. but here are that splashes of color, show signs of a fight. resign zombies it and decided to renovate an old warehouse and to work and live in the old city with a mission. it, me and another person opens that there work that can be here will start here, organically. it will open by itself. young palestinian is really designers, and entrepreneurs have been moving in, inspired by earlier artists to let them all at once. there were 450 businesses operating in the old city. now there are just 50. the old cities always be in the heart of nazareth. now a growing group of residence wants to get it beating again. it will come back because the city still have very much for i think with
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as we begin a new year, the u. n. forecasts and lower global economic growth because of the pandemic, labor shortages, supply chain issues, and rising inflation. for the identity and economy with a long history of economic crisis, this will pose an even bigger challenge. the south american nation is just weeks away from a deadline to restructure its debt with the international monetary fund. failing to do so good cut off access to most of the international financial institutions, putting even more pressure and it's already struggling economy. the debt dates back to 2018 when then press it, and nowadays your monthly signed on to a 57000000 dollar loan, the largest in the i, m f. his tweets he success or precedent. i let it go for a man. this inherited a debt of some 44000000000 for the man. this rejected the terms of the agreement
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and sent his finance minister. might have been man to renegotiate. so will he succeed and will the country ever resolve it's year long? financial crisis. argentina's finance minister might have ingle, man talks to al jazeera minister might have been man, thanks so much for talking to i 0 it's been a very difficult year for countries around the world. argentina is also included in that list of countries. it's currently under negotiations with the i m f. when do you think an agreement could be reached where we're working on it every minute counts. this is of course, like any international initiation of that. a complex negotiation with a many a countries involved with a math, which is an institution it, which is
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a complex institution. a that is facing a massive challenge like govern things, facing massive challenge, which is the capacity of reaching an agreement to finance, which was the historic, the highest loan in the history of they, america, the largest low in the history of home f, a 57000000 doris loan, out of which almost 45000000 doris, were disburse. so we are in right now, or in the were she shows, am with argentina i strained to achieve is an agreement that doesn't job or dies the very strong economic recovery that the countries going through. argentina 2021 was one of the countries in the world that had the fastest recovery. actually they cut and 3 from the g 20, with the highest rate of economic growth economy will have grown by 10 percent. in 2021. employment is growing significantly, investment we will have grown by 35 percent. our exports are growing. but the main,
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the main burden for continuing, i long, sorry for going on recovering 22 east the debt with the i m f. so this is sort of an erotic situation. a method to boast sees countries in situations of balance of pain in crisis emerging tina, the tension in the violence of payment east, the i m f, and all we are asking international support for is to support our views for shares. having urgent deena alongside the track of the economic recovery, the now is occurring. why if any patient so difficult, i mean, i didn't have to pay this year. $19000000000.00. i mean, what are the discrepancies that exist in order to reach an agreement with versus difficult because of the size of a loan? because of what happens before a, you know, in 2018, there was a loan that many, many so as a political loan, as the support funds moving actually solution to
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a government so that the government could win the elections. and that created a lot of anti a t. it created many problems on the economic problem. there was implemented in not work, a deteriorated economic and the social situation. unemployment grew economic activity fell over t increase inflation and increase. there was say, an evaluation from the m f recently called the ex boss personalization, which was very, very important document review day me a free cool, nice is that the program was a failure that did not achieve any of its objectives. the entire economic and social situation got worse and that it was based on fund foundations that were not appropriate for the team as economy. the evaluation frame africa, nice to be with that there should have been that operation to restore the sustainability of republic debt in foreign currency. and that this would have been
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a capital calling regulations in order to avoid what actually happened the entire loan. those $45000000.00 were use to pay an sustainable debt to foreign creditors and to finance their form. a massive formation of foreign assets in about 24000000000 dollars constituted a capital flight finance by the i m f. and in this context, the process of international, the creation of common understandings in international community, it becomes very important. there's something interesting in the communique of the m, f for about the export from nation, which is that it says that directors basically support the conclusions of that report. but it says a number of directors do not. so what we see now is that it has proved difficult to
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achieve international consensus on what's the right path forward on having common understanding on what happened in the past. and these differences within the international community is what's preventing de m f from achieving the consensus in needs to support what tina is trying to adopt. there's big differences between members of the i m f of those who support what organ tina is proposing and, and those who don't. what if the dispute about i mean, what are they discussing and what is origin tina proposing? well, you know, there are difference of interest to begin with and there may be difference in views as well. whereas in teens proposing to have a program that is consistent, that has a sin main goal. the continuing to of economic growth and that fosters job creation. and that code says to reduce the most significant social
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problems that we have in our economy. and most importantly, the child poverty in our population under 14 year. so we have about 54 percent of the population in that age range insulation of poverty, which is a very important social problem for our economy and a out 40 percent of our population, eastern situation of poverty. overall, we need the cognitive row and economy that doesn't grow as an economy that doesn't receive the social problems. and as you can afford that we have been implementing and it's working. the economy is growing now. there's job creation and economy very significant. and poverty is getting reduce. their main difference is the fiscal path. what we're proposing is if the scope past that in our view we'll have bargain, tina not only to give continuity to the met, recovering the short term. but it will also help us to have a more dynamic market economy and economy that bills comp,
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dynamic competitive advantage is it has more a creation of value that a has more public infrastructure and has better capacity to invest in science. in technological developments, our view is that the kind of fiscal path that the i m f is proposing will bring troubles. there are differences, day m f once a faster boss of fisco. it faster fiscal conciliation than what argentina's proposing. and we think that will affect the, the recovery in the short term, but also the capacity of the economy to grow in the medium, a long term mandate, particularly one aspect. the de m f has been facing, de mess won't less investment in a public capital is basically capital spending done what argentines proposing for ass a capital spending east of the essence to date the congress. and they were the managed
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to have more vibrant economies or those that have more abundance in what is not more bio i cross borders, of course, knowledge and the solutions create knowledge, but also public infrastructure. do you think that when they see ation, there is a chance to change the way the i m f. implements with programs? i mean, we know that many of the very few measures implemented by the i m f has not work in many countries around the world. do you think the business with the asian can be away with changing the way the i m f, implement some of its program where there's going to be a historic negotiation and the will to, to a large extent determine the face that the m. f. will have in the next few years in a war that is full of problems in a word that is evolving and in which multilateralism needs to evolve and they
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michelson is to revolve. i need to have the ability to evolve. certainly we know that fiscal disparity in context of countries that have been recessions, like you've probably not anything or have a recession for out of the last 5 years. and now, i mean, i'm not counting 2021, right? right. so from 2016 to 2020, and 2021 is recovering us 30 now, which has undermined the recovery. so the point is what works and what doesn't. and there are, you know, influential a stakeholders that have different views and also hear what the financial markets are part of the picture and many things that it is better to have economy that does implemented program off fiscal adjustment, but not just reduction for their fees, which we are doing and it is something that is very important to see the reduction,
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the fiscal deficit is being very significant and it's happening on the basis often economy that recovers others. there's food for programs or construction re and the logic of those is that by having a contraction, the country will have lower economic growth and therefore lower imports. and if there are no or imports, there will be more accumulation of foreign exchange reserves. therefore, market axis will restore earlier and that just doesn't work. that will mean putting the interest of financial market participants. i have off the interest of the argentine, people, no program. these contraction or re can be sustain. no government will continue with a program. there is contraction re what we need now is a healthy, multi lecturer,
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leasing one that codes the conferencing. they were when they are in situations of crisis to resolve the crisis in a way that help the people of those countries. you talk about economic growth and how i can pina has recovered in the past year, especially after the kinetic but i would continue still a country that has very high inflation around 50 percent a year. as you mentioned before, high poverty rates. what could government plan in order to get to fight inflation to get the economy going and to actually, you know, for the, for that improvement in be economy to reach the population. the inflation has been a pervasive pro limit notion dennis history and inflation is the consequence of multiple causes. and some of which are structural some of important progress was achieve in these engagement. we day a math over the last couple of years. it is reflected in the evaluation day and
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half of the previous is done by agreement of 2018 in this relation was published just a few weeks ago. there is a recognition that inflation in the more fast the problem does come with a i m f portrait and not just a monitor phenomenon, but it cannot be should tackle tackle with a policy of high interest rates in is more than that. what does it mean 1st in needs increases as sustain increase in the production of the trade that will sector of our economy, right. our export. so we're export need to increase in a sustainable way that's very important because in urgent dina, typically what traits pressures on the exchange rate. these are the haitians in which the economy grows, but exports not keep up with the growth of the economy and that growth puts pressure on the foreign exchange reserves. what in turn put pressure on the
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exchange rate on inflation? so that's an structural issue. changing the structure of action of economy, that's why it's important to have productive policies in which the state placed an important role that holds the market economy to have a situation of more dynamic, some through investments in the right public infrastructure. technological progress is high in the fact progress. number 2, the fiscal fcc custody of his and it's happening where we use a fiscal deficit from 6.4 percent of g d p to 2. but point 9 percent of g d p. we expect to point 123, in 2021. the primary deficit that's remarkable in the context of people living, i don't the races of the current growth. he was the nomic recovery that led to such a large increase in revenues that it made this reaction bustled, not economic contraction. as we were discussing with we day
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a mass direction. after that, it is important to the pan less on morning or financing for a country that last the access to international markets in 2018. and a 3rd part of this multi faceted problem has to do with expectations. you can imagine how people grow in a country that has been used to view with inflation. the mindsets evolve in a way in which, when there was inflation, the past everyone expects inflation in the future, and those expectations sometimes become so fulfilling. so the state place an important role in order to coordinate actions between the private sector, the companies, their workers, the unions, you know, the to coordinate a decrease of a day, inflation expectations. imagine, you know, i'm, i'm asking if you are for an investor and you're outside of argentina, and you look at the economy here and you say, it's
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a country that has had over 20 programs with the many of which have had failed. a country with capital controls waves inflation. what would you say to them to say that this time is going to be different whether today there is only website this on the upside, because it both prices searches. prices are incredibly low. they do not reflect the actual capacity, diversion, tina, for generating incomes in foreign currency. if we measure today g d, p per capita version dina using the foreign exchange rate because in the presence of capital controls there is an efficient exchange rate and the exchange rate was the people below them 5000 dollars per capita. that's not realistic. are indeed not a low income country, he's a new income country. everyone understands that that's unrealistic. so there is on the upside, the economy is growing. there are investment opportunities, investment as they said, we have grown by 35 percent this year. and actually there is 4 in their investment today in important sectors of our economy,
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especially in sectors associated with natural resources and then get industrialized or in denise. now on the right path duprang's off inflation i pro and our historic that have multiple causes and are being address, it will take time. this is a short, it will take time for us and dina to reduce the inflation to levels that are healthy for the workings of the market economy. but we are along that path. many of the confrontations that exist today is not only between argentina and i m f or those negotiations, but also internal problems, internal problems within the government, with different views about how to deal with the i m f. what do you say to me? it's known that the president supports one thing, but then there's an internal dispute with the vice president on many of her supporters who do not want an agreement. what, how, how do you explain that?
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no, but that's not correct. that's not correct. there are no different views we in the governing coalition on what we're trying to do with. we want to achieve a deal to be able to refiners, the debt that was it taken in 201820191 that doesn't job dice the recovery of washington as economy. the reason why we don't have a deal yet is because the i m f has been too slow in achieving the consensus needs, in order to support the needs that a argentine needs today. so to order it off, christina, fernandez and, and other movements. it does not have an impact on what the government is doing right now to negotiate because in many cases, when you say yes, an agreement is being reached. many will tell you and what is christina saying about this? so my question is, is there a join for agreement in this negotiation by both the press and the vice president
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work to protect argentina, to make or dena stronger country we what we all work together. and i did. the question is understandable in the sense that there is a lot of noise that we hear from many in international community read, read that noise is some founded there. real reason why we don't have a do today is because the i m f is too slow and we hope we can be there for support the international community. so we can move to it, but not any kind of theme. that's a point. it is. there is a principle when it comes to i, i am a 4th, that is called ownership. the country has to own their program, not just to validate what others dictate. and what we want is to be able to be the ones that the sign, the program, which we view and get support for the program that aren't in now once i need support the argentine now we on, on many goals cation with the i, m,
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f. there are several congressmen in the united states that have reached to treasury to try to assist countries, not only argentina, others with a 3 charges, which is something that generates a big problem for, for those who own the, the i, m f. is this realistic? is it something that would have an impact on many patients in origin, tina and other nations across the world? well this the surcharge, this is an issue that he's not very well known, or at least worse than that well known in the were and eighty's becoming more know now. and this is, sparkle, feel fake ness associated sometimes with some of the policies in the context of multilateralism. if you look for information, precise information about how much contra space in terms of the or charges interests or charges that they met for both of you won't find it. this is not, not available, it's not, there is no transparency when it comes to this point. and basically what's
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happening now is that countries in crisis are financing the operational expenses of the i, m f to a large extent. this just makes no sense. this is a policy that is pro cyclical. it undermines the mission of a mass because it occurs. those can be deprived countries in crisis from the foreign exchange. they need inorder to recover. so it basically war says it's balance of payment problems. there are none of countries that is increasing. they are paying this or charges issue the all used in the context of it and then they, they should have been revised. but it didn't happen yet. many international community are supporting a change and it was very important to see this letter from the a number of lawmakers in the us to the sector of the treasury. explaining that this whole charge is basically will make countries in situations are difficult. if they
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would put these countries and have we been more difficult position. this is by the what's happening there in the world. we are a member of the g 20, participate of all the discussions that you 20. and what we see is that it is very difficult to achieve consensus on issues now on which the benefit to cost ratio is so high in the short term. josh is one of this case, it was a policy that should have been revised, but google of what's happening with the vaccines right direction in the war. the countries have very low rates of recognition because advance countries have coordinate vaccines. and we have manage in international community to find the right corporation to 11. there's, if it's that difficult, the chief corporation on things in which the benefits in the short term are so large and so obvious how we go into chief corporation to deal with issues like
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climate change for which their benefits will be seen in, in terms that are longer and one last question, argentina has been, you know, when you, when you look at the country history, i mean we've had one crisis after another. you know, it's like a systematic thing that every 1020 years something happens. what is wrong with with argentina? what is wrong with the economy? what needs to be fixed in order to come out of this permanent crises that, that happen? one of the other, well, the main, the main constraint for sustaining going on the growth in dina has been the lack of dynamism in the export sector. and the high dependence on, ah, commodities. and they are incomplete of economy to transform its structure of production and add more value it to, to its production by deswartz. we're changing now, and it is working. if we look at the data for 2020, when our exports increased significantly,
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and this was not just you to the increasing their prices afford, we sell to the war. we are experiencing an increase in volumes in the quantities afford, we sell to the war. that's why it's so important for us to have this report in the mission community to be able to give continuity to the set of economic policies that we have been involved in. so we can create a country. there's the cas more dana mason this morning. bruce if that create more jobs and it debit basically makes for an environment in which our people can leave in a more come way. thank you very much for talking to i 0. my pleasure. thank you very much. the athletes a lot. just deny it, but the world of sumo wrestling is shrouded in secrecy. one 0 one east. get to re
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rec, safe. inside to sport where ancient tradition meet modern scandal on l. g 0 with school. ah ah ah, europe's grand capitals are littered with monuments loading their imperial pas and their museums filled with artifact, spoils of war and occupation uprooted from their places of origin. people in power explores the heated debate are all right,
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from ownership admits activists taking matters into their own. out of africa on a, jesse, you know, ah, a late night gunfire heard in booking fossils capital. after a day that saw soldiers stage mutiny said several barracks. ah, are you watching al jazeera live from doha? i'm funny back. people also coming up. the u. s. embassy in ukraine tells diplomats families to leave and edges other americans to go to fighting the threat of a russian invasion. taliban leaders arrive a no way to disc.


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