Wednesday, September 06, 2023

Can a Few Sparks Light a Fire?

In Hungary, a fledging New Left is rebuilding amidst the ruins of Orbánism



AUTHOR
Áron Rossman-Kiss
Members of the left-wing group Szikra demonstrate against the Orbán government’s plan to bring Chinese Fudan University to Budapest, 5 June 2021
.Photo: IMAGO / EST&OST


On a warm morning in June this year, a small group made its way through the streets of Tatabánya, a midsize post-industrial town an hour northwest of Budapest. They were in a hurry — the eviction was scheduled for 11:00.

Áron Rossman-Kiss is a Budapest-based researcher, artist, and activist in Szikra, a left-ecological political movement in Hungary.

They reached the flat, two scruffy rooms on the second floor with enough time to talk things through with the tenant, Erzsébet, put their backpacks in a corner, post a handmade slogan on the door that read “A HOME FOR EVERYONE”, and form two short rows in front of the entrance. Then, they waited for the police to show up who would probably, inevitably, remove them one by one, seal the door, and leave Erzsébet on the streets. A middle-aged woman, she had lived in the flat since the 1990s and fallen into arrears in the past years. These days, she worked as a cleaner.

“There’s little chance we’ll succeed — five percent, tops”, the activist in charge of the action explained. The municipality would simply not budge, despite attempts to find a solution by advocacy groups, politicians, and charities in the previous days.

The group formed two rows in front of the entrance. Shortly after 11:00, a man walked up the stairs with an assistant carrying a drill. Bailiffs? The group jeered and took photos. Policemen walked halfway up the stairs a few times, waited downstairs, and fined a driver who had illegally parked. A woman carrying a document stopped in the hallway. Intermittently, a member of the group livestreamed the scene. They made calls. Hours passed.

Soon after, the news came through back-channels, first tentative, and still hesitant when it became official: the human chain had worked. The eviction was deferred.
A Snapshot of Modern Hungary

The group that stopped the eviction on that day was formed of members of Budapest-based housing rights group The City is For All (AVM), activists affiliated with Párbeszéd (“Dialogue”), the Green Party, and Szikra (“Spark”), a left-green movement. The livestreaming activist was MP András Jámbor, a Szikra candidate elected to parliament against all odds in April 2022. Successfully halting an eviction remains a rare feat in Orbán’s Hungary, and particularly so outside of Budapest. But besides the outcome, that morning’s circumstances give a clear snapshot of Hungary’s present.

Just like in other countries of the former Eastern Bloc, the once state-owned housing stock in Hungary was almost completely privatized following the 1989 regime change. In the absence of political strategy or will — Hungary has not had a housing ministry or unified housing agency in the past 30 years — every crisis immediately ripples through already precarious housing arrangements.

This is particularly true in places like Tatabánya. Although the long downturn of the 1990s hit other regions harder, it still saw the closure of its heavy industry and mining, leaving its inhabitants with much reduced prospects. Much of the middle class that formed in the upturn of the 2010s moved to nearby suburbia. State-funded houses of culture, once central to community life, have closed, educational access stymied, and the population finds itself in steady decline.

As social services have been hollowed-out, falling into debt the way Erzsébet did often becomes an inevitable trap, even more so for those relying on irregular, informal jobs. Living in one of the remaining social housing units should have offered her a layer of protection, particularly in a city that elected an oppositional mayor in 2019. But as in similar municipalities, most of the mayor’s term has been marked by infighting within local opposition ranks, the absence of a social vision, and the incapacity and unwillingness to build a political movement in the face of the unrelenting hostility of the Orbán regime. No wonder a semi-privatized system for debt collection geared towards profit — and intertwined with the highest state authorities — thrives in such a context.

A welfare system catering to the needs of the middle and upper classes, growing inequality, a private-public nexus of greed and cruelty, indebtedness, and emigration all characterize Hungary midway through the fifth Orbán government — together with a largely disoriented and toothless opposition. Stopping the eviction of a single woman might appear like a minor change in such circumstances, but it shows that a handful of resolute activists can make a difference in people’s lives. It is upon such small victories that the Left must build to both inspire and mobilize towards a genuine alternative.
The True Face of Orbánism

Erzsébet’s situation is hardly an anomaly in contemporary Hungary. As we approach the middle of Orbán’s fourth mandate since his return to power (he also served as prime minister between 1998 and 2002), inflation in Hungary is by the far the highest in the EU, nearly double that of the second-highest country. Food prices have risen by over 30 percent. Real wages have been in decline for almost a year, while many companies rack up exceptional profits.

Isolated internationally and in increasingly dire economic straits, Orbán unleashed a stringent pack of austerity measures, raising taxes while slashing most of the meagre social support and subsidies established over the last decade. In the last weeks alone, the government scrapped price caps for designated food products, enacted additional taxes on pharmaceutical goods, massively reduced the capacity of the postal service, and shut down train lines. Moreover, despite a prolonged social movement among teachers throughout the country (a starting teacher’s salary is less than 700 euro), the government’s supermajority voted to end their status as public servants, further pushing the educational sector into precarity. A few weeks after the vote, the government’s spokesperson blamed the country’s poor results in reading comprehension on Roma children.

After 13 years, the Orbán regime reigns less through mobilization than through apathy, arbitrary and centralized decision-making, and the unceasing churning of a media machine controlled by the ruling party. But just as state and party have become inextricably intertwined, state capacity has also been profoundly hollowed out in key sectors such as education, health, and basic infrastructure. Little wonder that the level of COVID-related excess mortality was shocking even in global comparison.


There’s no denying the system’s blatant cronyism and corruption, but no regime can survive on coercion and brainwashing alone. Neither does propaganda produce docile subjects out of thin air.

Indeed, this is the true nature of a regime that has seemingly delighted in the confusion its hybrid nature breeds among commentators, academics, and politicians — friend and foe alike. It is true that the regime’s own propaganda has created a kind of political force field of its own, buoyed by the sycophantic embrace of a far-right international that sees Budapest as a bastion of the West, whiteness, family, and tradition. Moreover, it is also true that a superficial glance at some of its measures — such as the re-nationalization of energy providers and the pension system — could lead to see potential signs of a redistributive or developmentalist agenda. But if Orbán pointedly attending Thatcher’s funeral wasn’t evidence enough, perhaps Hungary’s flat tax system, the hollowing-out of social services, and its draconian anti-labour laws offer some indication of the true political economy of the Orbán regime.

And yet, just as most Hungarians never voted for the sweeping marketization that took place after 1989, opinion surveys consistently confirm that most of the population favours higher state investment in the kinds of social welfare and redistributive policies that are anathema to the government. By now, even an issue such as gay marriage — ardently demonized by the government and its propagandists — is supported by a majority of the population. Despite this, mobilization against Orbán’s Fidesz party has only been sporadic. Many protest movements were unable to catalyse widespread anger and support, or simply reverted to liberal platitudes once their momentum had.

How to explain such a seeming contradiction? Much blame can be attributed to the opposition’s echo chambers. It also is impossible to underestimate the role of censorship and fake news spewed by the government-controlled public media system. Complicit transnational firms and a shift in global industrial policies have been decisive.

Similarly, the EU’s complacency is painfully clear: the European Commission and Council have knowingly postponed the decision to freeze financial transfers until recently, despite the fact that the systematic funnelling of these funds to Orbán’s cronies has been amply documented over the past 14 years. Finally, the first years of the regime also saw a reorganization of the economy that brought material benefits — however precarious and uneven — to a segment of the population that went well beyond a small coterie of insiders.
The Golden Years

Orbán’s first years in office remain crucial to his power. To this day, much of the regime’s legitimacy is built on the memory of the late 2000s (a trauma repeatedly invoked by pro-government media). Hungary’s openness to global flows of capital — once heralded by local elites and international institutions as proof of its development — also meant that the country was extremely vulnerable by the time the 2008 financial crisis came crashing down.

As a nominally Socialist-led government under Prime Minister Ferenc Gyurcsány followed by an unelected “technocrat” enacted harsh austerity measures and wide-scale privatization, hundreds of thousands of citizens lost their jobs, savings, and future prospects. Many defaulted on foreign currency-denominated mortgages and found themselves trapped between squalor and casual jobs, joining the flexible labour market in the EU’s Western core, where an expendable workforce from the East proved essential in maintaining a semblance of normalcy amidst the neoliberal dismantling of state structures.

In the face of the Socialists’ tone-deafness and pressure and deception on the side of international institutions such as the EU and the IMF, social dislocation ensued, exemplified by countless evictions, murders of Roma citizens, and the rise of far-right militias. Fidesz’s “Hungary First” discourse proved unsurprisingly popular in such a context. But this was not merely a question of finding the right narrative: during its years in opposition, the party had effectively built a nationwide movement capable of mobilizing a wide cross-section of a society largely disenchanted with the broken promises of 1989.

For all of Orbán’s political acumen, his party’s rise would not have been possible without a political reorientation among a large section of the Hungarian economic elites. In Poland, a disgruntled comprador class allied with a resurgent nationalist Right in the guise of the Kaczyński brothers’ Law and Justice Party (PiS). In Hungary, Fidesz managed to broker a deal with a national bourgeoisie that felt pushed aside by transnational firms’ dominance over domestic markets, while simultaneously creating a haven for international investors in strategic sectors.

This has led to a two-pronged economy: on the one hand, special economic zones and tax breaks have facilitated a reindustrialization via foreign-owned, export-oriented, low-value added (largely automotive, most often German) industry. While German companies with Hungarian subsidiaries may sometimes pay lip service to liberal democratic norms (for instance, berating the Hungarian government for its homophobic propaganda), German industrial interests are firmly aligned with — and catered to by — the Orbán government. On the other hand, state intervention has facilitated accumulation for the Hungarian bourgeoisie in sectors such as construction, tourism, and banking. In this process, rather than marginalizing the state, increased financialization has led to steeper power verticals, reorienting the state’s overlap with the market.
The Foundations of Fidesz’s Power

After more than a decade in power, Orbán has carved himself an outsized persona in global politics, often removed from the actually existing Hungary his system has created. As such, what happens in the country has reverberations far beyond Hungary itself. This is not only the case for ideological battles — even as the regime’s economic structure unravels, it will certainly remain a key battleground for the future of Europe.

As the EU’s green industrial policy has in effect been largely outsourced to private companies, Hungary has become a key site for the production of electric batteries in recent years. Established through governmental decrees and shrouded in secrecy, they have also been the site of worker abuse and lack of democratic consultation with affected communities. As such, they represent a dire harbinger of what a for-profit “green politics” stripped of accountability, redistributive elements, or wider consideration for ecosystems might bring — and one to which the Left must provide clear and progressive alternatives.


Despite widespread dissatisfaction and the destruction of basic social services, we cannot take the Orbán regime’s demise for granted. In these circumstances, Szikra and the broader Hungarian Left have to offer both concrete forms of resistance and support as well as a long-term political horizon to which they can aspire.

While often justifiably indignant, many critics still dismiss the regime as an authoritarian contraption under which all (bar a closed circle of insiders) are condemned to suffering and silence. Indeed, there’s no denying the system’s blatant cronyism and corruption — the sheer number of childhood and university friends, family members, and grifters of all kinds suddenly elevated to positions of power is staggering, but no regime can survive on coercion and brainwashing alone. Neither does propaganda produce docile subjects out of thin air.

Orbán’s tenure coincided with the release of an extended EU Cohesion Fund and slight but steady growth throughout the bloc. Industry brought jobs. Under the guise of a pro-natalist programme, the government engineered a construction boom (tailored for the middle and upper classes.) The much-vaunted public works system reinforced existing inequalities and offered neither avenues towards education nor integration into the labour market. But in regions entirely abandoned by previous governments and blighted by long-term unemployment, it was often seen as more than nothing. A cap on utility bills proved immensely popular — even if investment in retrofitting or renewable energy communities would have provided similar savings in the long run (and could not have been terminated from one day to the next with the stroke of a pen).

As the EU’s financial transfers and indolence facilitated the regime’s entrenchment, these political successes were endlessly trumpeted in an increasingly centralized public media system. The dissonance between official propaganda and everyday reality was often adeptly highlighted by the far right, all the while the government curtailed the right to strike and demonized even the mildest social measures. Crucially, this status quo was never subjected to a serious challenge from the Left.
Sparks of Hope on the Left

Under Orbán, the once-dominant Hungarian Socialist Party (MSZP), which facilitated widespread marketization and deindustrialization throughout the 1990s and the 2000s, has seen its base wiped out as it ambles aimlessly to the rhythm of defections and ideological disarray. The two fratricidal green-liberal parties, Hungary’s Green Party (LMP) and Párbeszéd, never formulated coherent political platforms, and years of infighting have left them both in tatters. The strongest opposition party today thus remains none other than former PM Gyurcsány’s Democratic Coalition (DK). After losing four general elections in a row, he has seemingly settled with attempting to rule over the opposition instead.

In a cruel twist, the electoral system devised by Fidesz has de facto forced all these parties — including the arch-liberal Momentum and reformed (but not repentant) far-right party Jobbik — to collaborate in order to have any chance of challenging the ruling party. Confusion was inevitable: during the spring 2022 general elections, the united opposition’s programme did contain a few socially minded proposals, but it was headed by a conservative candidate who all but disavowed them, professed admiration for Orbán’s flat tax, and singled out corruption as the only reason for Hungary’s woes. The electoral results were, perhaps predictably, abysmal.

If, a few exceptions aside, the Left has made only little electoral inroads in Hungary during the past decade, a lively left-wing scene has nevertheless emerged. Still small, Budapest-centric, and inevitably beset by fierce disagreement, it has nevertheless contributed to broadening the terms and possibilities of political imagination.

Mérce, an online news portal, offers invaluable reporting and commentary from a variety of critical and left-wing perspectives. The openly left-wing YouTube channel Partizán has emerged as one of the most important media organs in the country. Institutions and initiatives such as the Solidarity Economy Centre (SZGK), Periféria Központ, Helyzet Műhely (Working Group for Public Sociology) or Közélet Iskolája (School for Public Life) do tireless work, organizing, and research. Gólya Cooperative and Auróra are two community centres that offer precious space and opportunities for a variety of progressive initiatives. AVM has effectively empowered homeless people alongside allied activists as part of the struggle for just housing. And while trade unions are historically weak and hopelessly divided, strong individual voices have emerged from the labour movement in recent years as well.

Szikra emerged from this milieu, but in contrast to the wholesale rejection of institutional politics professed by many on the Hungarian Left, its members have always seen it as a necessary terrain of engagement — however fraught, hostile, and hollowed-out. Its forerunner, Szabad Budapest, supported left-of-centre candidates in municipal elections in 2019, including the current Mayor of Budapest Gergely Karácsony. The movement was officially formed as Szikra in 2020.

During a lull in COVID lockdowns, it organized one of the most significant demonstrations of the past few years, a protest against the planned building of a local branch of the Chinese state-run Fudan University. But whereas much of the mainstream opposition’s criticism resorted to hackneyed racism and orientalist clichés, Szikra instead used the case to place the question of housing at the centre of a public debate, as the campus was to be built on the location of long-planned and acutely needed student dorms. The construction of the campus has since been indefinitely put on hold.
The Long March through the Institutions

In the opposition primaries of autumn 2021, Szikra nominated András Jámbor, the founder and former editor-in-chief of Mérce, as its candidate in Budapest’s XIII–IV district, the poorest and most unequal part of the inner city. Raised by a social worker single mother, Jámbor built a campaign focused on solutions to local inequalities, the housing crisis, and tensions caused by creeping gentrification. Running on an openly left-wing platform, he roundly defeated his opponents in the primary.

In the run-up to the 2022 elections, the government poured an extraordinary amount of resources into the district, which had been a stronghold of Fidesz potentate Máté Kocsis, amplifying its disinformation campaign, routinely harassing volunteers, and tearing down Jámbor’s electoral placards. And yet, the campaign managed to mobilize the largest number of volunteers in a single district in all of the country. On the very night when Orbán raked in his fourth supermajority in a row, Jámbor flipped the district by a decisive margin, showing that the Left could still resonate, mobilize, and inspire in Hungary today.


In the face of mounting pressure, Szikra has not backed down.

Being an MP in a regime that has effectively hollowed out parliamentary deliberation brings with it a series of conundrums. In this context, Jámbor has used the visibility offered by his position to tirelessly raise issues related to the cost of living crisis, social injustice, and labour struggles, quickly becoming one of the most recognizable faces of the opposition. But his work has also gone beyond such interventions, whether in decisively vouching for the inclusion of pre-paid utility meters (used predominantly in social housing) into the new utility cost regulations, or in implementing a household energy assistance programme in his district.

Because participation in institutional politics allows access to visibility and funds otherwise inaccessible, Szikra will also field candidates for the 2024 municipal elections both in Budapest and smaller cities. But gaining electoral representation cannot be an end in itself. In a country where the alienation wrought by politics has been essential to Fidesz’s grip on power, Szikra has sought to build a political community that can offer support and socializing opportunities for its members alongside concrete forms of action.

Structured around a strong mentorship programme, the several-hundred-member-strong movement organizes a host of educational activities and events both internal and open to all. In parallel to street actions that highlight social injustices, it also seeks to collaborate with other social movements, trade unions, and civic initiatives. This spring, it co-organized a day-long May Day programme together with SZEF, one of the independent trade union federations. Since then, it organized a campaign denouncing the racketeering system of debt collection. Municipal campaigns are gradually gathering strength.
Rebuilding a Shared Sense of Hope

As the contemporary examples of Putin’s Russia and Erdogan’s Turkey show, autocratic regimes can continue well after the social contracts that constituted their foundation collapse. Indeed, against the backdrop of unprecedented climate breakdown and the unravelling of liberal democracies, perhaps such death spirals are becoming the norm.

Despite widespread dissatisfaction and the destruction of basic social services, we cannot take the Orbán regime’s demise for granted. In these circumstances, Szikra and the broader Hungarian Left have to offer both concrete forms of resistance and support as well as a long-term political horizon to which they can aspire. Going forward, the challenge for the movement will be one shared by left-wing movements worldwide: mobilizing a largely non-union labour force, meaningfully repoliticizing a hollowed-out public sphere, offering concrete solutions and networks of solidarity that go beyond reactive acts of resistance, and creating institutions capable of pushing for an inclusive green transition built around and for communities. It’s a difficult but necessary task. One that necessitates day-to-day, often tedious work, the rebuilding of trust and of a shared sense of hope.

Meanwhile, faced with multiple crises (many of its own making), an increasingly erratic and vindictive Orbán regime is increasingly clamping down on any form of dissent. In early August, two weeks before Szikra’s annual summer camp, the venue caved into political pressure and cancelled the event. A few months earlier, a 42-year-old woman active in the movement was imprisoned on bogus charges for two weeks in the aftermath of incidents surrounding a tacitly approved neo-Nazi march.

The march marked the escalation of a coordinated campaign against the movement and András Jámbor, which has relied on the full force of state-controlled media to smear the organization as violent, foreign-backed, and even paedophilic. These are no idle threats coming from a government whose use of the Pegasus software against journalists and opposition has been amply documented, that directly controls courts and has a proven record in whipping up hateful hysteria. The direct line between open threats professed in parliament and a death threat received shortly thereafter should be clear to all.

And yet, in the face of mounting pressure, Szikra has not backed down. As it was being ceaselessly maligned through the regime’s loudspeakers, its activists made their way to Tatabánya on a June morning. They stopped an eviction. In the next weeks, the movement’s campaign gathered enough money to pay off a substantial amount of Erzsébet’s debts. It looks like she’ll be able to keep her home, as we all should be able to.
Meta’s Tussle with Canada Isn’t Over Principle, or Even Profit: It’s About Control

International attention is clearly part of the plan: the company wants to make an example of Canada.

Blayne Haggart
September 6, 2023
Meta CEO Mark Zuckerberg leaves federal court after attending the Facebook parent company’s defence of its acquisition of virtual reality app developer Within Inc., December 20, 2022. 
(Laure Andrillon/REUTERS)


Meta’s ongoing (as of this writing) blocking of news media on Facebook and Instagram in Canada, in response to the federal government’s passage of the Online News Act, has garnered international attention. Many other countries are considering passing a version of the act, itself modelled on an Australian law, that would, like Canada’s, require large social media and search engines that are “digital news intermediaries” to negotiate payments to these news companies. And Meta’s consistent refusal to lift its blockade to help Canadians deal with the worst forest fires in our history has only supercharged international attention.

For Meta, international attention is part of the plan. The company clearly wants to make an example of Canada to the rest of the world: this is what happens when a democratic country that isn’t a global or economic superpower tries to regulate it in ways it doesn’t like. The lesson: We can hurt you. Regulate us and we will.

But that’s not the only — or even the most important — lesson to be drawn from this attempted coercion. Recognizing those other lessons requires understanding what is actually happening, and why.

The what is straightforward: Meta (and Google, waiting in the wings) has spent the past two decades deliberately and successfully establishing itself as essential information infrastructure, a macrointermediary (a more precise term than “platform”) between its users and suppliers, on which Canadians are now dependent. Meta’s news blockade is the private sector equivalent of an authoritarian state internet shutdown, if somewhat (but not completely) more targeted: a blackout of vital communication infrastructure in order to crush dissent. The latter, in this case, stems from the democratically elected representatives of the Canadian people in the form of the Online News Act, which treats Meta and Google as essential infrastructure, and regulates accordingly.

Once one understands this, the why also becomes clear. It’s not about a principle, or even money. Meta is calling the question of whether democratic governments are able to control these transnational companies and subject them to the rule of law in the public interest, or whether they are a law unto themselves. This action has implications not only for the funding of news media, but for any law the company deems not in its interest.

Lesson One: Close the Loopholes, Get Ready for a Fight

Technically, Meta is exploiting what it sees as a loophole in the Online News Act, which regulates “digital news intermediaries.” The reasoning, as University of Ottawa law professor Michael Geist, the foremost exponent of this approach, highlights in his many posts on the topic, goes as follows: If Meta kicks all news off its services, it’s no longer a news intermediary and not subject to the law.

This strategy is likely a big reason why the company has refused pleas to allow Canadians affected by the forest fires in the Northwest Territories and British Columbia to access news sources via their network — something Geist has also defended as consistent with the law.

Putting aside the obvious immorality of refusing to help — in fact, withdrawing help from — people in need, the fact that Canadians are begging Meta to restore news access shows how the company’s pretense that it is not a news intermediary, and therefore not subject to this law, is risible. Facebook has spent the past two decades marketing itself as the everything app. Its Free Basics plan is designed to persuade people in developing countries to see Facebook and its “walled garden” partners as equivalent to the internet. In 2019, the company attempted to launch its own currency, again, to bring ever more of the world under its umbrella.

The story is no different in news. Some 45 percent of Canadians cite social media as their “go-to place for news.” On the supply side, for the past decade Meta has positioned itself explicitly as a medium (i.e., an intermediary) for “ideas and news,” and had made a big show of supporting “a healthy news ecosystem,” funding “dozens of news publishers,” although it has since cancelled a program funding local reporters to protest the law and indicated its other programs “could be at risk.”

Online search engines are even more important to how we find and access information. In Canada, Google remains the only game in town, accounting for 92 percent of searches.

Of course these are digital news intermediaries. If it walks like a news intermediary and quacks like a news intermediary, it’s a news intermediary. They've assumed the power; now, they rebel against the related responsibilities.

The good news is, loopholes can be closed. Communications scholar Dwayne Winseck suggests the answer may be in the legislation itself. Section 51 of the act forbids digital news intermediaries from “unjustly discriminat[ing] against an eligible news business” or providing “undue or unreasonable preference to any individual or entity, including itself.” Meanwhile, the Competition Bureau is investigating Meta’s actions as potentially anti-competitive.

No matter the outcome, the ideal policy response is obvious: close the loophole or sue for compliance. The lesson for other countries is that if you want to regulate these transnational corporations, make your legislation airtight and be ready to defend it.

While the spectre of taxing links raises fears of censorship and chilled speech, the act’s actual funding structure seems designed to address such concerns.

Lesson Two: This Is about Power

No grand principles are at stake here. Unlike previous large-scale digital protests undertaken to oppose proposed laws that could stifle free speech, Meta’s news blackout is not a principled stand for freedom of expression.

Indeed, Bill C-18 in no way impinges on freedom of expression. Contrary to some misleading claims, it doesn’t impose a “link tax.” While the spectre of taxing links raises fears of censorship and chilled speech, the act’s actual funding structure seems designed to address such concerns. Rather than designate the government as the decider, the law leaves it to the companies involved to negotiate agreements among themselves, subject to final-instance arbitration if needed. Such arbitration, as it happens, somewhat restricts Google’s and Meta’s power to exact overly favourable concessions from the companies that depend on their services. That is likely one reason why both oppose the bill so strongly.

Regardless, we already have empirical proof that freedom-of-expression fears over the act are overblown. Australia’s similar law, enacted in 2021, has not broken the internet or reduced access to information. On the contrary, the Australian Treasury reports that it’s been a resounding success in creating much-needed jobs for journalists.

Years of intense debates over hate speech, misinformation and disinformation have demonstrated the naïveté of the early-2000s utopian assumption that simply connecting people is enough to deliver freedom. Quality matters as much as quantity, and quality is expensive.

It is in no way unreasonable to require companies that form part of the information ecosystem to help support the news outlets that make their businesses socially worthwhile — especially when neither Facebook nor Google has thus far been a particularly responsible steward of this ecosystem. Google’s search algorithms have come under fire for bias and racism. Facebook’s network has facilitated hate speech (according to the United Nations, Amnesty International and Facebook itself) to the point of genocide, against the Rohingya in Myanmar in 2017.

If Meta’s news blackout is not about a principle, it’s also not about money. These are fantastically wealthy companies who, in Australia, Canada and elsewhere, have demonstrated they have no moral objection to funding news under other circumstances.

It is, rather, about power.

In Australia, Meta ended its news blackout in 2021 when the government agreed to allow it and Google to avoid designation under the law, if they reached funding arrangements with Australian news media companies. As the Treasury report notes, the resulting law allows the companies to choose with whom they will and won’t negotiate, the resulting agreements being kept secret.

In contrast, the Canadian law mandates negotiations, a degree of transparency, and mandatory arbitration if an agreement cannot be reached: democratically, it’s a superior option.

The contrast highlights the stakes for which Meta and Google are playing. These companies refuse to abide the loss of their power over others, to set the terms by which others operate.

International political economy scholar Susan Strange called the ability to set rules and norms “structural power.” That power is these companies’ line in the sand: a refusal to allow democratic countries to tell them what to do.

That companies, and not just countries, can exert structural power can be hard to understand. It can be difficult to recognize the direct equivalence between a government shutting down the internet to deal with protests and a company cutting off access to an entire country’s media.

But the effects are the same. The offending government can argue (correctly) that people can still talk to one another by other means, just as Meta argues that the 45 percent of Canadians who get their news from social media can simply go to the original source. In both cases, the injustice is obvious: people have become accustomed to using the internet, and Facebook, to communicate. It is fundamentally unjust to capriciously shut down these sources of information. It doesn’t matter if it’s the government or the company turning off the taps: the effect on people’s lives and livelihoods is identical.

The Meta news blockade is giving Canadians and governments around the world a lesson in private, unaccountable, capricious corporate structural power. It’s a lesson that will be very familiar to marginalized groups: capricious private power leaves you at the whims of the macrointermediary’s rules, which it can change at any time, for any reason.

If you depend on a company to direct subscribers and readers your way, as Halifax Examiner editor Tim Bousquet indicated his outlet does, in an interview with CBC Halifax, then that company has structural power over you.

If your visibility as an artist or influencer on a platform changes when the company adjusts its algorithm, that company has structural power over you.

If users can no longer access news as they’ve done for a decade because of a corporate decision, that company has structural power over them.

And if a country’s news media is thrown into an existential crisis when a company decides to block its work, that company has structural power over the industry, and the country.

Democracies were and are designed to make structural power accountable to citizens. Corporations, which can also exert structural power, are not so designed. Unaccountable structural power is ripe for abuse, as Meta is showing with its decision to block news during a natural disaster.

The company’s power grab is designed to thwart the stated purposes of the Online News Act, which is to both foster a healthy information ecosystem and promote stability and accountability, two things that Meta’s capricious corporate structural power eschews.

This is a fight that Canada — or indeed any country interested in effective regulation — was always going to face, the moment public and corporate interests diverged.

The Battle We Were Always Going to Have

There’s little room for compromise if one party refuses to accept the legitimacy of the other.

One way or another, this situation will be resolved, and its outcome will tell us where the balance of structural power lies between small-country democracies and these global, US-based, macrointermediaries.

The Canadian government’s proposed regulations for the Online News Act, released September 1, shed some light on this question. While the regulator, the Canada Radio-television and Telecommunications Commission (CRTC), would still retain oversight over any agreements, it cedes some structural power to the macrointermediaries. The regulations would provide a limit on their liability, and significant flexibility over which media companies they bargain with, allowing them to ignore “any group of 10 independent news businesses operating local news outlets.” Perhaps most significantly, the proposed rules would allow non-monetary services, such as training, to count as “compensation” to news providers. This raises the potential for the tech giants to extend their influence into newsrooms: there’s no such thing as neutral, unbiased training.

To place this in context, consider what some alternative outcomes would reveal about the exercise of structural power. Canada could back down further and withdraw the act, effectively showing that macrointermediaries can impose their will on democratic governments. Or the government could up the ante by suing Meta, or by closing the loophole, or by requiring that all social media not discriminate against legitimate news services. It could increase the pressure to the point where Meta is forced to choose between abandoning a trillion-dollar Group of Seven market and itself backing down.

Which brings us to the final lesson: This is a fight that Canada — or indeed any country interested in effective regulation — was always going to face, the moment public and corporate interests diverged. It could just as easily have been over online harms, competition policy, or something else.

This conflict is only part of a longer contest between global macrointermediaries and democracies seeking to subject them to greater democratic oversight. Meta’s news blockade should convince policy makers that these macrointermediaries are, first and foremost, competitors for power, not partners or service providers. This truth extends beyond communication, to health, smart cities and — with the arrival of commercial generative artificial intelligence — education. There’s not a policy area into which these corporations will not seek to insert themselves. The goal will always be the same: the pursuit of corporate structural power at the expense of domestic democratic governance.

Meta’s actions confirm that national governments must be very cautious about allowing companies to establish themselves as intermediaries — say, in artificial intelligence — and need to examine sectors, such as retail and transportation, in which corporations have already gained a toehold. If there’s any lesson from the Meta news blackout, it’s that these companies must be subject to more and stronger regulation, not less, in order to ensure stability, transparency and democratic accountability, in the public interest.

The opinions expressed in this article/multimedia are those of the author(s) and do not necessarily reflect the views of CIGI or its Board of Directors.

ABOUT THE AUTHOR
Blayne Haggart

Blayne Haggart is a CIGI senior fellow and associate professor of political science at Brock University in St. Catharines, Canada. His latest book, with N
atasha Tusikov, is The New Knowledge: Information, Data and the Remaking of Global Power.

Canada Is Right to Push Back Against Digital Platforms’ Power

Requirements for social media companies to distribute ad revenue are not novel.

Natasha Tusikov
August 30, 2023
Photo illustration by Dado Ruvic/REUTERS.

Unprecedented wildfires in the Northwest Territories and the Okanagan area of southern British Columbia are again highlighting the vital role that social media companies play in enabling people to access and share information during a natural disaster.

Many people have become accustomed to receiving news stories through Facebook and Instagram — about 30 percent and 10 percent of Canadians, respectively — but with Meta now blocking all Canadian news on its platforms, those fleeing wildfires have another thing to think about. As Prime Minister Justin Trudeau said on August 21, “Facebook is putting corporate profits ahead of our democracy and our well-being.”

Meta’s actions constitute a “chokepoint” — a tactic that only works when companies command significant market share and provide critical services. Worse, this news ban is political, intended to pressure the Canadian government into amending or repealing Bill C-18, the Online News Act, which will require fair revenue sharing between companies designated as “digital news intermediaries” such as Google and Meta and news outlets.

Requirements for social media companies to distribute ad revenue are not novel. In February 2021, Facebook reportedly used news blockades to bully the Australian government, which had introduced the News Media Bargaining Code, requiring Facebook and Google to establish commercial agreements with media companies in Australia for the remuneration of news content, or face legal consequences. The blockades resulted in the Australian government amending the bill, and Facebook lifting its news ban after eight days.

Meta’s Canadian news ban during a state of emergency starkly highlights the capriciousness and cruelty of corporate power. But it also provides an ideal opportunity to reflect on how we can regulate tech companies’ power, and why Meta’s decision is so consequential for news media organizations and for its users.

Meta, alongside Google, dominates the digital advertising industry. As digital advertisers, these companies courted the news industry and inserted themselves into the ecosystem. This relationship became interdependent: news organizations now rely on Google and Facebook for advertising revenue and traffic to their sites, while the social media companies benefit from users’ engagement with news stories, driving advertising. This relationship, however, is distinctly asymmetrical: social media companies control the advertising revenue flows by setting rates, and control user engagement through secret algorithms, allowing them to set rules that privilege their commercial interests over those of news organizations or the public.

Facebook and Instagram can also create chokepoints because they are designed to function not just as social media companies, but also as interfaces through which people would access other sites and services on the web. Facebook has long desired to be an “everything” or “mega” app that combines messaging, social media, payments and marketplace services in the same way that Tencent’s WeChat app has done in the Chinese market. This ambition has raised concerns of anti-competitive behaviour in the United States and elsewhere. While accessing news directly through a media organization’s app or its website is possible, this goes against Meta’s carefully constructed social media empire.

Recognizing how social media companies wield market power — including by instituting chokepoints that deprive other actors of revenue sources or audiences — better equips us for designing effective regulation. Canada’s efforts to implement the Online News Act can learn from Australia’s experience where, for example, researchers have found that a lack of transparency makes it difficult to determine which news outlets receives what amount of funds from social media companies. As a researcher from Swinburne University of Technology in Melbourne notes, under the code, social media companies may act to serve their “business priorities, rather than in the interest of the code’s stated aim of supporting public-interest journalism.”

The fight over the Online News Act is also a preview of the battles yet to come. The federal government has plans to introduce the right to repair for software-connected goods in 2024 and revive consultations on its long-stalled online harms legislation. These two initiatives will generate significant opposition from big tech, as has been evident in the United States, where high-powered lobby groups have pushed back against right-to-repair legislation. We need to plan how to regulate the wider digital economy and digital society, while addressing the problem of monopolies operated by incredibly powerful technology companies.

Meta’s extortive tactics during a wildfire-induced state of emergency are a dare for the Canadian government to back down. Instead, Canada needs to push back against unchecked corporate power.

This article first appeared in The Globe and Mail.

The opinions expressed in this article/multimedia are those of the author(s) and do not necessarily reflect the views of CIGI or its Board of Directors.

ABOUT THE AUTHOR
Natasha Tusikov

Natasha Tusikov is an associate professor of criminology in the Department of Social Science at York University and a visiting fellow with the School of Regulation and Global Governance (RegNet) at the Australian National University.
EU climate report: Earth experienced hottest three months ever in summer 2023
By A.L. Lee



Sept. 6 (UPI) -- The planet experienced the hottest three-month period in its history this summer, punctuated by numerous heat records across the globe as sea surface temperatures soared to unprecedented levels, according to a climate study from the European Union published Wednesday.

The analysis determined that July 2023 was the hottest month in recorded history, followed by the warmest August ever documented, according to the Copernicus Climate Change Service, which tracks global climate data for the EU.

Both months followed a record-setting June that kicked off the extraordinary summer heat wave.

Copernicus released a similar analysis in early August declaring July 2023 the hottest month ever on Earth, with daily surface air temperatures rising drastically since 1940 while 2023 was outpacing all other years in what's now considered the hottest summer in modern human history.

Read More'
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The ongoing scorcher, attributed to climate change, has broken numerous temperature records dating back to the mid-19th century, with the first eight months of this year becoming the second-hottest on record alongside 2016, when a powerful El Niño bathed the globe in sweltering heat.

August also saw the highest-ever monthly average for global sea surface temperatures, which topped more than 101 degrees every single day of the month, the study said.

"Our planet has just endured a season of simmering -- the hottest summer on record," U.N. Secretary-General António Guterres said in the report. "Climate breakdown has begun. Scientists have long warned what our fossil fuel addiction will unleash. Surging temperatures demand a surge in action. Leaders must turn up the heat now for climate solutions. We can still avoid the worst of climate chaos -- and we don't have a moment to lose."

Meanwhile, satellite observations showed Antarctic sea ice has reached a record low -- 12% below average in August -- compared to where ice levels have been historically at this time of year. At the same time, Arctic sea ice was about 10% below average, a level not seen since the late 1970s, the report said.

A climate study published in January predicted half of the world's glaciers will melt and disappear before the turn of the next century despite meaningful efforts in recent years to address global warming.

In May, the World Meteorological Organization issued a report warning that global temperatures were likely to rise to historic levels over the next five years due to increased greenhouse gases and give rise to extreme weather events.

Further, the international climate agency predicted that 2023 through 2027 would go down as the hottest years on record, with a 66% chance of the average annual surface temperature usurping climate goals set by the Paris Agreement to shrink global warming through the next century.

The unrelenting conditions around the world are expected to continue for the foreseeable future -- potentially into late fall and the start of winter, according to meteorologists with the National Oceanic and Atmospheric Administration.

Previously, meteorologists warned that another El Niño event was likely to prolong extreme temperatures into the coming months, raising the potential for even more heat records.

Extreme temperatures were still being felt across the United States, Mexico, Southern Europe, China, the North Atlantic, and the Mediterranean as Mother Nature held its grip.

A recent analysis by World Weather Attribution said extreme world temperatures in July were a likely sign of worsening climate change, and that heat waves were no longer rare but at least 50 times more likely in the modern world.
INVESTIGATING ITSELF
Sri Lanka government to investigate allegation of intelligence complicity in 2019 Easter bombings



COLOMBO, Sri Lanka (AP) — Sri Lanka’s government will appoint a parliamentary committee to investigate allegations made in a British television report that Sri Lankan intelligence had complicity in the 2019 Easter Sunday bombings that killed 269 people.

Labor Minister Manusha Nanayakkara told Parliament on Tuesday that details on the investigation will be announced soon.

A man interviewed in the Channel 4 videos released Tuesday said he arranged a meeting between a local Islamic State-inspired group and a top state intelligence official to hatch a plot to create insecurity in Sri Lanka and enable Gotabaya Rajapaksa to win the presidential election later that year.

Azad Maulana was a spokesman for a breakaway group of the Tamil Tiger rebels that later became a pro-state militia and helped the government defeat the rebels and win Sri Lanka's long civil war in 2009.

Rajapaksa was a top defense official during the war, and his older brother, Mahinda Rajapaksa, had been defeated in the 2015 elections after 10 years in power.

A group of Sri Lankans inspired by the Islamic State group carried out the six near-simultaneous suicide bombings in churches and tourist hotels on April, 21, 2019.

Related video: Sri Lanka protests: University students lead anti-government rallies (Al Jazeera)  Duration 2:08  View on Watch


The attacks killed 269 people, including worshippers at Easter Sunday services, locals and foreign tourists, and revived memories of frequent bombings during the quarter-century war.

Fears over national security enabled Rajapaksa to sweep to power. He was forced to resign last year after mass protests over the country’s worst economic crisis.

In the Channel 4 program, Maulana said he arranged a meeting in 2018 between IS-inspired extremists and a top intelligence officer at the behest of his boss at the time, Sivanesathurai Chandrakanthan, the leader of the rebel splinter group-turned-political party.

Maulana said Chandrakanthan had met the group in prison while in detention on allegations of murder and found they could be useful to create insecurity in the country.

Maulana told Channel 4 that he himself did not participate in the meeting but that the intelligence officer told him later that creating insecurity was the only way to return the Rajapaksa family to power.

After security camera footage of the bombings was released, Maulana recognized the faces of the attackers carrying bomb-laden backpacks as those whom he had arranged to meet with the intelligence officer, Maulana said in the program.

Channel 4 reported that Maulana had been interviewed by U.N investigators and European intelligence services over his claims.

Neither Chandrakanthan or Rajapaksa has commented on the claims.

Pro-Rajapaksa lawmaker Mahindananda Aluthgamage rejected the claims in the documentary. He told Parliament that Rajapaksa had no reason to set off bombs or use suicide bombers to get elected because public support was already on his side as shown by the result of local elections held in 2018.

Krishan Francis, The Associated Press

British broadcaster: Rajapaksa officials behind Easter 2019 attacks

by Melani Manel Perera

An investigation aired yesterday on Channel 4 implicates the former president for the Colombo massacres. In a documentary with unreleased material, a source revealed that a meeting was arranged between the current intelligence chief and Islamic extremists. The current executive says it will support an international investigation, but ministers contradict each other.



Colombo (AsiaNews) - Some officials close to the family of the former Sri Lankan president have facilitated the organization of the 2019 Easter attacks - in which over 260 people died - to favor the Rajapaksa family's return to power.

The revelation, made by a high-level source, is contained in an investigative documentary of the "Dispatches" program aired yesterday on the British broadcaster Channel 4. In the video, the source admits that in 2018 he had organized a meeting between the curren t of military intelligence, Suresh Salley, who was then working for the national intelligence directorate, and some militiamen of the National Thowheed Jamath (NTJ), an extremist organization affiliated with the Islamic State.

The goal was to hatch a plot to destabilize the country and ensure that Gotabaya Rajapaksa, effectively elected president in November 2019 after promising to shed light on the attacks, came to power.

Six suicide attacks took place on Easter Sunday against churches and luxury hotels in the capital Colombo, killing 269 people and injuring around 500. Since then, law enforcement has had difficulty arresting those responsible for the tragedy and thoroughly investigate the massacre.

The broadcast of the documentary immediately generated a parliamentary debate, following which the ministers also contradicted each other. Labor minister Manusha Nanayakkara said yesterday that the current president, Ranil Wickremesinghe - appointed after street protests last year ousted Rajapaksa - will support an international investigation. At the same time, he added, the executive will set up a "special parliamentary commission" to look into the matter.

Opposition leader Sajith Premadasa has also called for an international inquiry to be launched, while MPs from Sri Lanka Podujana Peramuna, the party still led by the Rajapaksa family, argue that the British broadcast is trying to create internal divisions of the country, and that the population had already decided, before the attacks, to vote for the election of the former president.

Later, the government spokesman and Minister of Transport and Mass Media, Bandula Gunawardena, denied in a press conference that there had been a discussion between the Council of Ministers regarding the matter of the documentary: "We only discussed what it was on the agenda,” he said.

Both Gunawardena and Nanayakkara have argued that Channel 4 has in the past broadcast its documentaries before sessions of the UN Human Rights Commissions to tarnish Sri Lanka's reputation.

CRIMINAL CAPITALI$M BIG PHARMA
South Africa ‘held to ransom’ by big pharma, overcharged for COVID vaccines

J&J, Pfizer charged South Africa between 15 and 33 percent more for COVID vaccine doses, contracts reveal.

A vial of Pfizer-BioNTech's COVID-19 vaccine
 [File: Robyn Beck/AFP]


By Sumayya Ismail
Published On 6 Sep 2023

Johannesburg, South Africa – Big pharmaceutical companies “bullied” South Africa into signing unfair agreements that forced the country to overpay for COVID-19 vaccines compared with Western nations, according to a nonprofit that lobbied for the details to be released.

The details were revealed on Tuesday in an analysis by the Health Justice Initiative (HJI), a South African NGO campaigning against public health inequality after it won a court bid last month to get the government to release its contracts.

During the height of the pandemic, Johnson & Johnson (J&J) charged South Africa 15 percent more per dose of its COVID vaccine than it charged the European Union, while Pfizer-BioNTech charged South Africa nearly 33 percent more than it reportedly charged the African Union, according to vaccine contracts between the pharmaceutical companies and the government.

“In simple terms, Big Pharma bullied South Africa into these conditions,” HJI director Fatima Hassan told Al Jazeera. “Amid a deadly pandemic, when scarce vaccines were only going to the richest countries, the companies exploited our desperation.”

“Put simply, pharmaceutical companies held us to ransom,” a HJI press release stressed.
(Al Jazeera)

South Africa was liable for payments of at least $734m, HJI said, including advance payments of almost $95m, with no guarantees of timely delivery.

“I wouldn’t say we were bullied, but we were in a catch-22 situation to save lives of South Africans against all odds,” Foster Mohale, spokesperson for South Africa’s Department of Health, told Al Jazeera. “The Department entered into these agreements to secure vaccine doses to protect the lives of South Africans against the deadly virus which claimed more than hundred thousand lives in South Africa.”

Hassan told Al Jazeera. “We hope that more countries will publish their contracts with Big Pharma, so that the world can see how the industry really conducts business.”

‘Pharmaceutical bullying’

The analysis of the documents also showed unfair practices by the Serum Institute of India – which charged South Africa 2.5 times more for a generic version of the Oxford-AstraZeneca vaccine than the United Kingdom – and the Global Alliance for Vaccines and Immunization (Gavi), which is meant to improve equitable access to vaccines.

Gavi gave no guarantees to South Africa about the number of doses it would receive, or the delivery date, HJI said, but South Africa remained liable to pay for everything it ordered – even after it had to order more doses directly from pharmaceutical companies when Gavi failed to deliver.

The HJI criticised “the pernicious nature of pharmaceutical bullying and Gavi’s heavy-handedness”, saying that “the terms and conditions are overwhelmingly one-sided and favour multinational corporations”.

It said the “most egregious example” of this was J&J, which traded supplies under “extractionist terms and conditions”. J&J charged South Africa $10 per dose while the EU reportedly paid $8.50, and non-profits paid $7.50.

However, Kafi Mojapelo, a spokesperson for J&J, told Al Jazeera the number was “incorrect” and “no customer paid more than $7.50 for our single-dose vaccine”.

“Johnson & Johnson … supplied our vaccine to South Africa at our final global price of $7.50 per dose, transferred our technology to Aspen Pharmacare in Gqeberha to enable the local fill and finish of the Johnson & Johnson COVID-19 vaccine and later enabled Aspen to manufacture, market and sell its own COVID-19 vaccine, ‘Aspenovax’,” a statement from the company said.

On Pfizer’s pricing, HJI said the company was “equally problematic” and “extracted over the top concessions” from South Africa, which had to pay it $40m in advance, half of it non-refundable. Pfizer also charged $10 a dose, but it charged the AU $6.75. The company is yet to respond to Al Jazeera’s requests for comment on the matter.

“It is unconscionable, imperial and unethical,” HJI said.

The contracts also stipulated that South Africa needed to get permission from the pharmaceutical companies if it wanted to donate or sell doses it had already paid for.

“Frankly, in a global pandemic this is paternalistic and imperialist, harms public health programming and deliberately reduces the autonomy of African states,” HJI said.

It highlighted the “deference to and fear of pharmaceutical power” and said that a regional and global solution as well as a “legally binding international agreement” was needed to solve the problem before future pandemics.

#KASHMIR IS #INDIA'S #GAZA

India's top court reserves judgment on Kashmir autonomy challenge

Petitioners say Modi's move to end special treatment of region was unconstitutional



A Kashmiri man looks from a window of his home in Srinagar in August. EPA

Taniya Dutta
Sep 06, 2023

India’s Supreme Court has reserved its verdict on a legal challenge to Prime Minister Narendra Modi’s move to end the disputed Kashmir region's autonomy.

Indian-administered Kashmir – the strife-torn Muslim-majority territory in the Himalayas – enjoyed special powers and limited autonomy under the Indian constitution, which Mr Modi’s government unilaterally scrapped the provision in 2019.

New Delhi further divided the state of Jammu and Kashmir into two federally administered regions on August 5: Jammu and Kashmir, and Ladakh.

The contentious move was challenged in the top court but the case was kept on hold.

India’s Chief Justice Dhananjay Chandrachud announced in July that the court's five-member constitutional bench would hear the case on a day-to-day basis.

After 16 days of arguments by the petitioners and government lawyers, the court reserved its verdict on Tuesday, although the date for the pronouncement of judgment has not been announced.

Nearly 24 politicians and activists petitioned the court against Mr Modi’s decision to unilaterally annul the autonomy of a region that is gripped by a three-decade-long armed movement against New Delhi.

Kashmir, like many princely states in British India, joined the newly formed Indian dominion in 1947 but secured its autonomy in the Indian constitution.

The erstwhile state had a separate constitution and the ability to vet federal laws before their imposition. Only Kashmiris were allowed to permanently settle in the region and own properties.

New Delhi argued that the constitutional provision fuelled separatist sentiments in Kashmir and deprived the region of investment and development.

Mr Modi's shock decision triffered a months-long security and communication clampdown in the region and a diplomatic war between India and Pakistan, which has controlled part of Kashmir since the two countries went to war over the disputed region in 1947.

The petitioners argued that Mr Modi's government acted unconstitutionally in annulling the provision. A clause in Article 370 stated that the legislation could only be amended or scrapped with the consent of Kashmir’s constituent assembly.

Government lawyers defended the move and told the court that it followed the legal procedures.

Oman’s wealth fund invests in US-based EV battery start-up

Oman Investment Authority and Our Next Energy to identify partnerships in energy storage

Our Next Energy's headquarters in Novi, Michigan. The EV battery start-up is valued at $1.2 billion. Reuters

John Benny
Sep 06, 2023

The Oman Investment Authority has invested in US-based electric vehicle battery start-up Our Next Energy (One).

Oman’s sovereign wealth fund also signed a strategic co-operation agreement with One to identify potential areas of partnership in energy and battery storage in the sultanate, Oman News Agency reported on Wednesday.

The financial value of the transaction was not disclosed.

The move, which is consistent with Oman’s strategy to reach net-zero emissions by 2050, will ensure the growth of the electric car market, said Ibrahim Al Eisri, director general of private equity investments at the Oman Investment Authority.

READ MORE
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In March, Oman signed a deal with the UK's Knights Bay to extract nickel in the sultanate's first mineral exploration agreement with a foreign partner.

The initial investment in the exploration and evaluation phase is about $25 million to $30 million in the first three years, Oman News Agency quoted the sultanate's Ministry of Energy and Minerals as saying.

EVs will make up about half of new car sales worldwide by 2035 as the push for net-zero carbon emissions picks up pace, Goldman Sachs Research said in a February report.

Sales will soar to 73 million units in 2040, from about two million in 2020, with the percentage of EVs in global car sales projected to rise to 61 per cent, from 2 per cent, during the period, the US investment bank said.

The International Energy Agency expects global electric car sales to surge by 35 per cent to 14 million this year.

These investments will contribute to accelerating the company’s progress towards a sustainable future and allow it to expand the scope of its products and networks to the global market, said Mujeeb Ijaz, founder and chief executive of One.

In February, One closed a $300 million series B capital raise, valuing the company at $1.2 billion. The investment round was led by venture capital firm Fifth Wall and Franklin Templeton, according to its website.

Oman, the largest non-Opec producer in the Middle East, has been investing heavily in sectors such as renewable energy and tourism in an effort to diversify its economy.

The sultanate is on track to become one of the largest producers of hydrogen in the world by 2030, the IEA said in a June report.

The country, which could also be the top exporter of the low-carbon fuel in the Middle East by the end of the decade, benefits from ample renewable energy sources and vast tracts of available land, the Paris-based agency said.

Last year, Oman set up a state-owned company, Hydrogen Oman, to oversee the development of hydrogen projects in the country.
Canada reach semis to end Doncic's Basketball World Cup dream


WEDNESDAY SEPTEMBER 06 2023

Canada's Dillon Brooks (L) and Slovenia's Mike Tobey (C) vie for the ball during their FIBA Basketball World Cup quarter-final match at the Mall of Asia Arena in Manila on September 6, 2023. 
PHOTO | JAM STA ROSA | AFP

By AFP

Canada ended Luka Doncic's Basketball World Cup dream on Wednesday with a 100-89 win over Slovenia to reach the semi-finals.

The Canadians overcame a 26-point effort from the Dallas Mavericks superstar to reach the final four for the first time, where they will face Serbia on Friday.

The result also meant Serbia and Germany qualified for the Paris Olympics as the highest-placed European teams at the World Cup.

Read: South Sudan win hearts, minds at World Cup

Doncic, who also had five assists and four rebounds, was ejected in the fourth quarter for picking up his second technical foul.

Canada's Dillon Brooks was also ejected earlier in the fourth quarter.

Related

Rwanda defends Bayern Munich deal


Brooks and Doncic were engaged in a ferocious tussle throughout the game.

The Manila crowd, getting their first look at Doncic in the flesh, cheered the Slovenian superstar's every move and booed Brooks.

Brooks responded by blowing a kiss to the fans after nailing an early three-point shot.

The two teams refused to give an inch and were locked at 50-50 at the half-time break.

Canada began to edge ahead after the interval, helped by a timely three-pointer from Brooks that gave his team a seven-point lead.

Read: US gather pace at Basketball World Cup on day of historic wins

Shai Gilgeous-Alexander had 31 points to lead Canada in scoring, followed by RJ Barrett with 24.

Germany beat Latvia in the day's first quarter-final to set up a semi-final showdown with the United States.