Five emerging powers have become the object of the G7 industrialised powers’ charm offensive, as the club of rich nations seeks broader support in their backing for Kyiv.
German Chancellor Olaf Scholz, who is hosting the G7 summit of advanced economies in the Bavarian Alps, said the invitation to Argentina, India, Indonesia, Senegal and South Africa signalled that the community of democracies is not limited to the West or to countries in the northern hemisphere.
“The democracies of the future are to be found in Asia and Africa,” said the German leader.
On the eve of the guest nations joining the summit, the G7 rolled out a $600-billion global infrastructure programme for the developing world.
But belying the invitation and the altruistic programme are fears that a blowback over the West’s support for Ukraine is building around the globe.
Western allies are battling to counter the rhetoric fanned by Moscow that it is the sanctions against Russia rather than Vladimir Putin’s invasion of Ukraine that are causing the multitude of crises rocking the world.
“Russia is responsible for this dramatic crisis, not international sanctions,” German Foreign Minister Annalena Baerbock insisted at a recent international food security conference.
“We know about indirect negative sanctions effects and we acknowledge them. However, they are much smaller than the brutal actions of Russia, which uses hunger as a weapon,” she said.
– Sceptical –
Three of the five guest countries — India, Senegal and South Africa — failed to condemn Russia over its assault of Ukraine, although Argentina and Indonesia did.
All five have been hit hard by the economic fallout from the war.
Thorsten Brenner, director of the Global Public Policy Institute, noted that “a crucial task” facing the G7 “is convincing many non-Western countries who are sceptical of sanctions that the West is mindful of their concern about rising energy prices when designing sanctions”.
The emerging powers have underlined the hunger crisis threatening their countries as Russia’s blockade of Ukrainian grain exports sends wheat prices soaring.
But other essentials such as sunflower oil and fertilisers essential for planting were also becoming scarcer, as both Ukraine and Russia are large producers.
And a scramble for energy by Western powers seeking to wean themselves off Russian energy has further pushed up power prices — once again hitting the poorest hardest.
Statements by Senegal President Macky Sall following his recent visit to Moscow for talks with Putin over the food crisis alarmed Western officials.
Sall had said he was “reassured” by Putin and had instead called on Ukraine to demine waters around its Odessa port to allow grain exports out.
At the same time, Western allies are seeking to ensure that the developing giants refrain from taking action that could worsen the crisis.
India’s decision to halt wheat exports and Indonesia’s move to stop palm oil exports have sparked shockwaves in the commodities markets.
Argentina has also lowered its quota of wheat exports.
South Africa meanwhile is suffering from the soaring oil prices.
A G7 official said Monday’s talks had shown that there was work to be done to convince the emerging giants about their action.
– ‘Don’t torpedo’ –
Putin too is jostling to broaden his backing, trying to hammer home his message that Western sanctions were to blame.
During a summit of Brazil, China, India and South Africa, calling on them to cooperate in the face of “selfish actions” from the West.
Amid fears of a growing gulf between the West and the rest, European leaders were tempering their tone.
While calls had been made earlier for G20 host nation Indonesia to exclude Putin from this November’s summit, European leaders now appear to have distanced themselves from that stance.
A Kremlin advisor said Monday that Putin planned to attend the summit, having received the official invitation. Jakarta has also invited Ukraine’s President Volodymyr Zelensky.
Scholz said the group of major developed and developing economies would continue to play a “big role” and cooperation was key.
Germany would therefore “not torpedo” the G20’s work, Scholz told ZDF public television.
EU chief Ursula von der Leyen said on Sunday that she did not rule out sitting at the same table with Putin at the G20.
“It is also important to tell him to his face what we think of him,” she said.
“And we must carefully consider whether we want to paralyse the whole G20,” she said, warning that the bloc, which makes up 80 percent of total world economic output, is “too important a platform” to undermine.
Americans' pandemic-era entrepreneurial streak is holding strong—for now
Inflation has nothing on the American entrepreneurial spirit, which, judging by the volume of new businesses formed, continues to see potential in the post-pandemic economy.
To better understand the post-COVID-19 outlook for entrepreneurship in the U.S., altLINE analyzed data and reports from the National Bureau of Economic Research and the Census Bureau. The data shows that Americans are on track through July of this year to submit 54% more applications to start new businesses compared to the same period in 2019, before the onset of the pandemic.
New business applications soared initially at the start of the COVID-19 pandemic as brick-and-mortar businesses were forced to close their doors in compliance with local social distancing mandates. Stores saw business plummet and many were never able to reopen their doors, even as public health restrictions eased. The seismic shift in shopping habits spurred many Americans to start new business ventures at rates not seen since before the Great Recession, when the U.S. consumer took a hit from one of the deepest recessions on record.
As the current economic situation puzzles economists who debate whether a recession may be in the future, the continuing creation of businesses could mitigate some of the pain of a slowing economy.
Studies have suggested that the growth of the smallest businesses can help an economy’s resilience. Young, tiny companies, sometimes called “microbusinesses,” reduce local unemployment rates in their communities and have been related to rising household incomes, according to GoDaddy’s July 2021 Venture Forward Report.
COVID-19 recession provides shot in the arm
Advancements in technology made it easier for business owners to set up and run online storefronts and services. Leading up to 2020, ecommerce platforms integrating new technology for enhanced shopper experiences provided a critical foundation for the spike in new businesses. As Americans stayed at home during the height of the pandemic, they shopped online for everything from personal care to groceries. Ecommerce sales nearly doubled in 2020, jumping by 43% to a whopping $815 billion in annual retail sales. Thousands in stimulus checks also did their part to keep Americans afloat—and spending. On top of those factors, interest rates for loans to buoy new companies and purchase real estate were at historic lows.
In the first year of the new business surge, retailers in the fashion space made up the lion’s share of new small businesses, according to the GoDaddy Venture Forward Report.
Today, those new business owners face a much more expensive economy. Costs for labor, gas, clothing, food, and other critical inputs for businesses have risen considerably since 2020.
Ground Picture // Shutterstock
New business class faces considerable headwinds
The typical new business faces its most difficult time in its first years of operation. Historically, 4 in 5 new businesses make it beyond their first year, according to Bureau of Labor Statistics data. But the odds of survival dwindle in each subsequent year of operation. Based on trends, just 1 in 2 businesses created in 2020 will likely survive beyond 2025.
The entrepreneurs looking to survive now face mounting headwinds in the face of rising interest rates, which has made borrowing money more expensive for both consumers and small business owners.
For small businesses seeking venture funding, seed-stage venture capital has stagnated as the venture capitalist ranks have grown wary of investing in early-stage companies. For those seeking loans, the cost of borrowing money today is at its highest since 2001, when the tech bubble burst, throwing the U.S. into recession.
Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.
This story originally appeared on altLINE and was produced and
distributed in partnership with Stacker Studio.
Robots are starting to deliver takeout orders. Are they here to stay?
In a March 2023 Deloitte survey, 47% of Americans said they would order from a restaurant that delivers food with a drone or an autonomous vehicle. That’s up 3 percentage points from the company’s 2021 survey about restaurant trends.
In that first survey, researchers noted there was “massive uncertainty in the industry, and many worried that restaurant patronage might never recover” from the COVID-19 pandemic. It found that two-thirds of consumers believed they would not immediately return to their pre-pandemic restaurant habits.
In 2023, most restaurant customer behavior is back to normal—though some changes have blended into the industry’s practices. Task Group analyzed the state of autonomous delivery systems, both nationally and internationally, to measure the progress of this technology post-pandemic.
As with other industries, technology has helped maximize efficiency and improve customer satisfaction. Business owners learned new service methods, marketing strategies, and technical terminology. Food delivery skyrocketed during lockdowns, making greater strides in restaurant efficiency and, in some cases, profits. Many restaurant owners connected apps that allowed customers to order without talking to a human to state-of-the-art delivery systems that don’t require a driver.
Restaurants and transportation companies in North America and Europe are experimenting with new automated delivery techniques that can reduce their costs as long as they do not compromise customer satisfaction. And consumers are ready—but how soon will it become standard practice?
Julija Sh // Shutterstock
What are drones and sidewalk delivery vehicles?
The robots most commonly used in the food delivery industry are aerial drones and wheeled autonomous delivery vehicles that travel along sidewalks to reach customers.
Drones are classified by how they generate lift—with fixed wings, rotors, or a combination—by how they’re used, such as food delivery, and what equipment they have on board, including batteries and cameras.
In the U.S., the Federal Aviation Administration regulates drone use. The agency requires pilots to be certified—and bans drones within five miles of airports.
For many years, the FAA stood in the way of companies seeking to use drones for deliveries, but in 2019, the agency agreed to allow uncrewed delivery flights beyond the pilot’s line-of-sight by UPS and Wing Aviation, owned and operated by Google’s mothership Alphabet. Since then, the agency has approved drone delivery operations for several companies, including Amazon and Walmart.
According to a study published by the Harvard Kennedy School in 2022, autonomous delivery vehicles are not the future. They’re already here. Self-driving machines about the size of a large cooler are already traveling down our sidewalks and crosswalks to deliver various packages.
Policymakers question how these vehicles will work and interact with people and other vehicles in already congested and chaotic urban environments. The Harvard researchers believe these vehicles “offer the promise of less congestion and greener shipments,” but also “raise concerns about safety and use of road and sidewalk infrastructure.”
While the debate continues, the manufacturers of these robots continue to advance their technology, including using machine learning to improve navigation, efficiency, and safety.
How far off are drone or sidewalk deliveries?
Estonia-based delivery startup Bolt, working with Starship Technologies, has been trialing sidewalk deliveries in Estonia, the U.K., and the U.S. and plans to formally launch robot deliveries later this year in as many as 500 cities in 45 countries.
Bolt’s main competitor, Uber, signed a deal in 2022 with autonomous vehicle startup Nuro “to test driverless food deliveries” in Mountain View, California, and Houston, Texas. Before the agreement, Uber ran a pilot program for sidewalk delivery in Los Angeles, while Nuro delivered Domino’s pizzas in specific areas of Houston for a year.
Story editing by Jeff Inglis. Copy editing by Kristen Wegrzyn.
This story originally appeared on Task Group and was produced and
distributed in partnership with Stacker Studio.
AI “superusers” seek education, fun, and productivity with generative AI
A look at two separate studies by Sparktoro and Salesforce on people’s generative AI use.
Maybe it was through your job. Or simply out of curiosity.
With the rise of generative AI, you’ve probably tried out ChatGPT or a similar tool. But how often are people using these? More interestingly, what motivates them? Both Salesforce and SparkToro sought to find out with two separate studies.
Here are highlights from each report and how they compare:
Work automation and educational pursuits top priorities for AI users
Both Salesforce and SparkToro can agree on this. SparkToro highlighted professional use of the platform as at an “all-time high,” then ranked categories of interest across over 4,000 ChatGPT prompts with these in the top 5:
- Programming: 29.14%
- Education: 23.30%
- Content: 20.79%
- Sales and Marketing: 13.47%
- Personal & Other: 6.73%
Salesforce found that 75% of generative AI users are motivated by streamlined work communications and task automation. The second highest topic of interest? Technically “messing around” (38%), though a close third was learning and education (34%). Both SparkToro and Salesforce posit that education doesn’t just include homework or university coursework—users also use tools like ChatGPT to develop knowledge of other desired educational topics.
Younger generations more likely to use AI than older ones despite general decline in usage
Salesforce surveyed 4,000 people to find out how they use generative AI and what their demographics are. Turns out, most “superusers” — aka those who use the tool every day — are Millennials or Gen Zers (65%). Plus, 70% of the Gen Z participants surveyed said they use generative AI.
Still, SparkToro notes an overall decline in generative AI use regardless of age. After studying monthly traffic data on OpenAI provided by Datos, SparkToro found overall traffic fell by nearly 30%.
Users ask ChatGPT to write, create, and list
These were the top three common words in SparkToro’s assessment in ChatGPT prompts. However, they also share a notable prevalence of the words “game” and “SEO in prompts as well. Other words less commonly used yet enough to come up in the results included judge, SaaS pricing, curriculum, employment, and employer.
Veronica Ott is a freelance writer and digital marketer with a specialization in finance and business. As a CPA with experience in the industry, she’s able to provide unique insight into various monetary, financial and economic topics. When Veronica isn’t writing, you can find her watching the latest films!
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