👋 Laba diena!*
Welcome to Wednesday, where Afghanistan's Taliban demand to speak at the United Nations, China takes a bold ecological stand and we find out why monkeys kept their tails and humans didn't. Business magazine America Economia also looks at how Latin American countries are looking to attract a new generation of freelancers known as "digital nomads" in the wake of the COVID-19 pandemic.
🌎 7 THINGS TO KNOW RIGHT NOW
• Taliban ask to speak at UN: With global leaders gathered in New York for the 76th meeting of the UN General Assembly, Afghanistan's new rulers say their country's previously accredited United Nations ambassador no longer represents the country, and have demanded a new Taliban envoy speak instead. Afghanistan is scheduled to give the final intervention next Monday to the General Assembly, and a UN committee must now rule who can speak.
• Four corpses found on Belarus border with Poland: The discovery of bodies of four people on Belarus-Poland border who appear to have died from hypothermia are raising new accusations that Belarus is pushing migrants to the eastern border of the European Union, possibly in retaliation over Western sanctions following the contested reelection of the country's strongman Alexander Lukashenko. The discovery comes amid a surge of largely Afghani and Iraqi migrants attempting to enter Poland in recent weeks.
• China to stop building coal-burning power plants abroad: Under pressure to limit emissions to meet Paris climate agreement goals, China announces an end to funding future projects in Indonesia, Vietnam and other countries through its Belt and Road initiative.
• Turkey ratifies Paris climate agreement: Following a year of wildfires and flash floods, President Recep Tayyip Erdogan announced at the UN that Turkey will become the last G-20 country to ratify the emissions-limiting accords. Turkey already signed the agreement in 2016, but has yet to hold a vote in parliament.
• Mass evacuations following Canary Islands volcano: More than 6,000 people have fled the Spanish archipelago as heavy flows of lava have buried hundreds of homes. Four earthquakes have also hit the Canaries since the Sunday eruption, which could also cause other explosions and the release of toxic gas.
• Rare earthquake hits Melbourne: The 5.9 magnitude quake struck near Melbourne in southern Australia, with aftershocks going as far Adelaide, Canberra and Launceston. Videos shared on social media show at least one damaged building, with power lines disrupted in Australia's second largest city. No injuries have been reported.• The evolutionary tale of tails: Charles Darwin first discovered that humans evolved to lose this biological trait. But only now are New York scientists showing that it was a single genetic tweak that could have caused this shift, while our monkey relatives kept their backside appendages.
🗞️ FRONT PAGE
"The roof of Barcelona" — El Periodico daily reports on the latest delay from what may be the longest-running construction project in the world. Work on the iconic Barcelona church La Sagrada Familia, which began all the way back in 1882 as the vision of master architect Antoni Gaudí, was slated to be completed in 2026. The Barcelona-based daily reports that a press conference Tuesday confirmed that the deadline won't be met, in part because of delays related to COVID-19. Officials also provided new details about the impending completion of the Mare de Déu tower (tower of the Virgin), the first tower of the temple to be completed in 44 years. Although it is currently the second tallest spire of the complex, it will become the highest point of the Sagrada Familia, reaching 172.5 meters thanks to an illuminated "great cross."
📰 STORY OF THE DAY
Latin America, the next mecca for digital nomads
Latin American countries want to cash in on the post-pandemic changes to the fundamental ways we work and live, in particular by capitalizing on a growing demand from the new wave of remote workers and "youngish" professional freelancers with money to spend, reports Natalia Vera Ramírez in business magazine America Economia.
💻🏖️ Niels Olson, Ecuador's tourism minister, is working hard to bring "digital nomads" to his country. He believes that attracting this new generation of freelancers who can work from anywhere for extended visits is a unique opportunity for all. Living in a town like Puerto López, he wrote on Twitter, the expat freelancer could "work by the sea, live with a mostly vaccinated population, in the same time zone, (enjoy) an excellent climate, and eat fresh seafood." For Ecuador, the new influx of visitors with money to spend would help boost the country's economy.
🧳 While online-based freelancers already hopped from country to country before COVID-19, the pandemic has boosted their current numbers to around 100 million worldwide. The Inter-American Development Bank estimates there could be a billion roaming, digital workers by 2050. Some European countries already issue visas for digital nomads. They include Germany, Portugal, Iceland, Croatia, Estonia and the Czech Republic, but in the Americas, only four countries make the list, namely Antigua and Barbuda, Barbados, Panama and Costa Rica.
💰 In August 2021, Costa Rica approved a law for remote workers and international service providers, intended to attract digital nomads and make its travel sector more competitive. The law provides legal guarantees and specific tax exemptions for remote workers choosing to make the country their place of work. It allows foreign nationals earning more than $3,000 a month to stay for up to a year in the country, with the ability to renew their visa for an additional year. If applicants are a family, the income requisite rises to $5,000.
➡️ Read more on Worldcrunch.com
#️⃣ BY THE NUMBERS
Google announced yesterday it will spend $2.1 billion to buy a sprawling Manhattan office building, in one of the largest sales of a building in U.S. history. The tech giant plans on growing its New York workforce to more than 14,000 people.
It is sickening and shameful to see this kind of president give such a lie-filled speech on the international stage.
— Opposition Brazilian congresswoman Vivi Reis in response to President Jair Bolsonaro's inflammatory 12-minute speech at the UN General Assembly. The unvaccinated head of state touted untested COVID-19 cures, criticized public health measures and boasted that the South American country's environmental protections were the best in the world.
✍️ Newsletter by Anne-Sophie Goninet, Hannah Steinkopf-Frank & Bertrand Hauger
Crunching the numbers of South Korea's personal and household debt offers a glimpse into what drives the win-or-die plot of the Netflix hit produced in the Asian country.
SEOUL — The South Korean series Squid Game has become the most viewed series on Netflix, watched by over 111 million viewers and counting. It has also generated a wave of debate online and off about its provocative message about contemporary life.
The plot follows the story of a desperate man in debt, who receives a mysterious invitation to play a game in which the contestants gamble their lives on six childhood games, with the winner awarded a prize of 45.6 billion won ($38 million)... while the losers face death.
It's a plot that many have noted is not quite as surreal as it sounds, a reflection of the reality of Korean society today mired in personal debt.
Seoul housing prices top London and New York
In the polished streets of downtown Seoul, one sees endless cards and coupons advertising loans scattered on the ground. Since the outbreak of the pandemic, as the demand for loans in South Korea has exploded, lax lending policies have led to a rapid increase in personal debt.
According to the South Korean Central Bank's "Monetary Credit Policy Report," household debt reached 105% of GDP in the first quarter of this year, equivalent to approximately $1.5 trillion at the end of March, with a major share tied up in home mortgages.
Average home loans are equivalent to 270% of annual income.
One reason behind the debts is the soaring housing prices. In Seoul, home to nearly half of the country's population, housing prices are now among the highest in the world. The price to income ratio (PIR), which weighs the average price of a home to the average annual household income, is 12.04 in Seoul, compared to 8.4 in San Francisco, 8.2 in London and 5.4 in New York.
According to the Korea Real Estate Commission, 42.1% of all home purchases in January 2021 were by young Koreans in their 20s and 30s. For those in their 30s, the average amount borrowed is equivalent to 270% of their annual income.
Playing the stock market
At the same time, the South Korean stock market is booming. The increased demand to buy stocks has led to an increase in other loans such as credit. The ratio for Korean shareholders conducting credit financing, i.e. borrowing from securities companies to secure stock holdings, had reached 21.4 trillion won ($17.7 billion), further increasing the indebtedness of households.
A 30-year-old Seoul office worker who bought stocks through various forms of borrowing was interviewed by Reuters this year, and said he was "very foolish not to take advantage of the rebound."
In addition to his 100 million won ($84,000) overdraft account, he also took out a 100 million won loan against his house in Seoul, and a 50 million won stock pledge. All of these demands on the stock market have further exacerbated the problem of household debt.
42.1% of all home purchases in January 2021 were by young Koreans in their 20s and 30s
Game of survival
In response to the accumulating financial risks, the Bank of Korea has restricted the release of loans and has announced its first interest rate hike in three years at the end of August.
But experts believe that even if banks cut loans or raise interest rates, those who need money will look for other ways to borrow, often turning to more costly institutions and mechanisms.
This all risks leading to what one can call a "debt trap," one loan piling on top of another. That brings us back to the plot of Squid Game, "Either you live or I do." South Korean society has turned into a game of survival.
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