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Reuters Top US News: May 24, 2017

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New York firms offer 'Plan B' to staff ahead of summer transit woes
NEW YORK (Reuters) - Faced with this summer's partial shutdown of a key New York transit hub due to track repairs, some employers in the largest U.S. city are scrambling to come up with "Plan B" offerings to allow their suburb-dwelling staff to avoid the largely shuttered hub.
Newark, N.J. airport reopens after United Airlines engine fire
(Reuters) - Newark Liberty International Airport in New Jersey reopened late on Tuesday after being shut down when 131 people were evacuated from a United Airlines flight over flames seen emerging from an aircraft engine.
Trump budget cuts may stir backlash in rural America
WASHINGTON (Reuters) - President Donald Trump’s proposals to slash federal aid to the poor, the sick and people living in rural areas reflect conservatives' demands for a smaller federal government but target many of the very people who voted for him last November.
Texas House approves new voter ID bill after setbacks in court
AUSTIN, Texas (Reuters) - The Texas House of Representatives gave preliminary approval on Tuesday to a new bill on showing identification when voting after a previous voter ID law was struck down by U.S. courts which said it discriminated against black and Hispanic people.
Connecticut proposes wage freeze, higher employee share for benefits
(Reuters) - Connecticut Governor Dannel Malloy on Tuesday proposed a wage freeze and higher employee contributions to pension and healthcare while reducing the state's share, in a framework for an agreement with labor unions that could save the state over $1.5 billion by 2019.
North American leagues urge vigilance after Manchester attack
(Reuters) - North America's major sports leagues have strict safety procedures at their arenas but have urged fans attending games to be vigilant following Monday's suicide bombing at a pop concert in Manchester, England, officials said on Tuesday.
Wikipedia can pursue NSA surveillance lawsuit: U.S. appeals court
(Reuters) - A federal appeals court on Tuesday revived a Wikipedia lawsuit that challenges a U.S. National Security Agency (NSA) program of mass online surveillance, and claims that the government unconstitutionally invades people's privacy rights.
Bond market braces for impact of New York's free tuition plan
NEW YORK (Reuters) - Little known private colleges that are already struggling to grow their revenues are facing a new threat that could further weaken their finances and make borrowing harder: free tuition at public universities.
Uber inadvertently underpaid New York City drivers for over two years
(Reuters) - Uber Technologies Inc [UBER.UL] said on Tuesday it underpaid its New York City drivers for the past two-and-a-half years, an error that could cost the ride-hailing company tens of millions of dollars.
Trump seeks to slash $3.6 trillion of spending in austere budget
WASHINGTON (Reuters) - U.S. President Donald Trump asked lawmakers on Tuesday to cut $3.6 trillion in government spending over the next decade, taking aim at healthcare and food assistance programs for the poor in an austere budget that also boosts the military.

India cancels plans for huge coal power stations as solar energy prices hit record low

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  • India has cancelled plans to build nearly 14 gigawatts of coal-fired power stations – about the same as the total amount in the UK – with the price for solar electricity “free falling” to levels once considered impossible.
    Analyst Tim Buckley said the shift away from the dirtiest fossil fuel and towards solar in India would have “profound” implications on global energy markets.
    According to his article on the Institute for Energy Economics and Financial Analysis’s website, 13.7GW of planned coal power projects have been cancelled so far this month – in a stark indication of the pace of change.
    In January last year, Finnish company Fortum agreed to generate electricity in Rajasthan with a record low tariff, or guaranteed price, of 4.34 rupees per kilowatt-hour (about 5p).
    Mr Buckley, director of energy finance studies at the IEEFA, said that at the time analysts said this price was so low would never be repeated.
    But, 16 months later, an auction for a 500-megawatt solar facility resulted in a tariff of just 2.44 rupees – compared to the wholesale price charged by a major coal-power utility of 3.2 rupees (about 31 per cent higher).
    “For the first time solar is cheaper than coal in India and the implications this has for transforming global energy markets is profound,” Mr Buckley said.
    “Measures taken by the Indian Government to improve energy efficiency coupled with ambitious renewable energy targets and the plummeting cost of solar has had an impact on existing as well as proposed coal fired power plants, rendering an increasing number as financially unviable.
    “India’s solar tariffs have literally been free falling in recent months.”
    He said about it has been accepted that some £6.9bn-worth of existing coal power plants at Mundra in Gujarat were “no longer viable because of the prohibitively high cost of imported coal relative to the long-term electricity supply contracts”.
    This, Mr Buckley added, was a further indication of the “rise of stranded assets across the Indian power generation sector”.
    Investors from all over the world were showing an interest in India’s burgeoning solar sector.
    “The caliber of the global financial institutions who are bidding into India’s solar power infrastructure tenders is a strong endorsement of India’s leadership in this energy transformation and will have significant ripple effects into other transforming markets, as is already seen in the UAE, South Africa, Australia, Chile and Mexico,” Mr Buckley said.

    Mideast: Growing Urbanisation Worsens Water Scarcity, Food Imports

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    Egyptian countryside south of Luxor, Egypt. In the background: the village of Al Bayadiyah. Photo: Marc Ryckaert (MJJR). Creative Commons Attribution 3.0 Unported license.
    Egyptian countryside south of Luxor, Egypt. In the background: the village of Al Bayadiyah. Photo: Marc Ryckaert (MJJR). Creative Commons Attribution 3.0 Unported license.
    ROME, May 24 2017 (IPS) - Conflict and insecurity remain the key barriers to development progress in the Middle East and North Africa. In Iraq, Libya, Syria, and Yemen, about half the population—around 40 million people—require humanitarian assistance. Across the region, countries depend heavily on food imports. As their populations urbanise and grow, the need for imports will increase.
    These are some of the Middle East and North of Africa related key findings of the 2017 Global Food Policy Report, which was issued by the International Food Policy Research Institute (IFPRI) on 24 May at an international experts meeting in Cairo.
    Dealing with the major challenges facing the Middle East and North of Africa (MENA) social and economic development, the Cairo international experts seminar focused on food import dependency in a region rife with population growth, urbanisation and conflict.
    Organised by IFPRI and the Faculty of Economics and Political Science of Cairo University under the theme “Rapid Urbanisation Challenges Food Security in Egypt” the meeting examined the situation in Egypt, where “the combination of high domestic population growth and swelling refugee and migrant populations is adding stress to an already vulnerable food system,” according to Shenggen Fan, IFPRI’s director general.
    Clemens Breisinger
    Clemens Breisinger
    In an interview to IPS, Clemens Breisinger, economist and senior research fellow based in IFPRI’s Cairo office, said that rapidly growing populations and the related increase in food consumption are likely to increase MENA countries’ dependence on food imports.
    Countries with sizable agriculture sectors, such as Egypt, Morocco, Sudan, and Tunisia, generally have a low food import dependency ratio of between 10 and 20 per cent—that is, food imports account for 10 to 20 per cent of food consumption, he said.

    Food Imports Dependency
    Nevertheless, the food imports dependency ratio of all other MENA countries exceeds 30 per cent, with Iraq, Mauritania, Oman, and Yemen reaching about 50 per cent, and Gulf countries such as Kuwait and the United Arab Emirates reaching up to 70 per cent, said Breisinger.
    According to the researcher, scope remains for increasing agricultural output in the region—but additional land and water resources for crop production are limited; climate change is expected to reduce crop yields; and fast-growing cities are encroaching on (often fertile) agricultural land.
    “To ensure future food security, MENA countries should be prepared to import more food from international markets in the near future.”
    Asked about the growing water challenges in the region, Breisinger said to IPS that water scarcity is projected to get much more severe in MENA, but there are technical and policy options to avoid disaster.
    The food security challenges place an added burden on the available water sources over and above the higher demand brought about by population increases, he said, while informing that by 2050, projections show that global per capita renewable water resources will fall by 25 per cent.
    “These pressures vary greatly across different regions of the world. In the Middle East and North Africa, further declines, estimated from 778 m3 to 506 m3 per capita per year, are expected to severely constrain livelihoods and economic development.”
    According to Breisinger, possible solutions to mitigate climate change impact on water scarcity include: increasing water use efficiency, and investing in alternative sources of water.
    The former can be achieved through investing in improved irrigation schemes and improving wastewater reuse, while the latter includes investing more in desalination technology, water harvesting, groundwater extraction, he explained.
    Breisinger added that the share of people living in urban areas is projected to overtake the share living in rural areas in most MENA countries by 2030—with the notable exceptions of Egypt, Somalia, Sudan, and Yemen.
    “In combination with population growth and rising incomes, urbanisation can be expected to increase the demand for processed foods. This likely trend provides an opportunity for agroindustry-led economic transformation in the MENA region to generate employment opportunities, improve food security, and reduce poverty.”
    Credit: IFPRI
    Credit: IFPRI
    The Double Burden of Malnutrition
    Asked about the “the double burden of malnutrition” in MENA, i.e. “over-and-under-nutrition,” he said this has been particularly prevalent in middle-income countries and especially those in the region.
    “Egypt faces relatively more pronounced instances of the double burden of malnutrition than other developing countries. For instance, almost every third Egyptian child under five years of age is chronically undernourished, while 78 per cent of all (non-pregnant) ever-married women 15–49 years of age are overweight.”
    According to the researcher, addressing these challenges through the reform of existing policies and programs can be expected to make a critical contribution to accelerating the country’s economic and social development.

    Economic and Social Safety Net Reforms in Egypt
    Many of the economic challenges that Egypt is facing today have for decades been deeply rooted in the country, he said. “To tackle these longstanding issues, such as slow progress in economic diversification and persistently high levels of unemployment and poverty, Egypt recently embarked on a historic economic reform process.”
    The year 2016 witnessed several of these reforms, including the imposition of a value-added tax (in August 2016), the floatation of the Egyptian pound (in November 2016), and further reductions in energy subsidies (in November 2016, following the 2014 partial removal of the subsidy,) explained Breisinger.
    The Egyptian government estimates current population growth rate of 2.4 per cent, which is double the average of other developing countries. Much of that growth is concentrated in urban areas, with the Cairo metropolitan area expected to grow by half a million people by the end of 2017, more than any other city in the world.
    In addition, armed conflict and drought in the region are exacerbating the challenges high growth and urbanisation bring, by adding displaced migrants and refugees to some of the country’s most vulnerable populations, according to the report.
    To meet the challenges of feeding these ballooning populations, IFPRI’s director general stressed the importance of connecting rural and urban areas.
    “Improving rural-urban linkages can decrease hunger and malnutrition, and bring growth and prosperity in both rural and urban areas,” he said.
    “Connecting farmers to cities provides farmers access to large markets where they can sell higher-value crops, and can provide city dwellers with access to more healthy and nutritious foods.”
    IFPRI was established in 1975 to identify and analyse alternative national and international strategies and policies for meeting the food needs of the developing world, with particular emphasis on low-income countries and on the poorer groups. It is member of CGIAR, a worldwide partnership engaged in agricultural research for development.

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