economic

March 23 (Asia Today) — People Power Party leader Jang Dong-hyuk on Sunday criticized a parliamentary probe plan led by the ruling party, along with the government’s real estate policy and its response to the Iran crisis.

Speaking at a party leadership meeting at the National Assembly, Jang questioned the need for an investigation into alleged prosecutorial misconduct during the previous administration.

“If a fabricated indictment can be proven through a parliamentary probe, it would be much faster to obtain an acquittal in court,” he said. “The investigation will ultimately only confirm that the prosecution and trial were justified.”

Jang also invoked remarks previously made by President Lee Jae-myung, saying, “If a president commits a crime, he should go to prison,” adding that he was “returning those words as they are.”

The conservative party boycotted the National Assembly plenary session a day earlier and held a protest rally outside the chamber. A brief confrontation occurred with ruling party lawmakers after the probe plan passed.

Jang criticized the government’s real estate policy, accusing the president of centralizing decision-making while excluding public officials from the process.

“By that logic, the president, who is facing multiple trials, should step away from judicial policy,” he said.

He also warned against expanding fiscal spending in response to the Iran crisis, citing concerns over inflation, exchange rates and rising oil prices.

“With a triple shock of high exchange rates, inflation and oil prices, releasing an additional 25 trillion won, about $18.7 billion, would push prices and the currency higher,” he said. “This is not the time for cash handouts but for stabilizing the economy.”

Floor leader Song Eon-seok echoed the criticism, accusing the administration of attempting to consolidate power and warning against what he described as excessive control over parliamentary committees.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260323010006783

The United States Federal Reserve will hold interest rates steady as the labour market cools and prices on goods and services surge following the US and Israel’s joint strikes on Iran.

The central bank will maintain its benchmark rate at 3.5–3.75 percent, consistent with the Fed’s decision last month, when it also held rates steady.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the US economy are uncertain,” the central bank said in a statement announcing its policy decision and referring to its Federal Open Market Committee.

“The Committee is attentive to the risks to both sides of its dual mandate.”

Holding rates steady was in line with estimates. CME FedWatch, a tool that tracks monetary policy decisions, forecast that there was a 99 percent chance that rates would hold steady.

The stall comes after three rate cuts in 2025.

Global gripes

Consumers are also facing the repercussions of US President Donald Trump’s trade and military policies in their daily expenses.

“Despite meaningful progress on inflation in 2024, Trump’s tariffs have stalled progress and kept inflation persistently above the Fed’s target. Wholesale prices are running hot as service prices surge, and now, Trump’s war in Iran is rocking commodity markets around the globe,” Elizabeth Pancotti, managing director of policy and advocacy at Groundwork Collaborative, an economic think tank, said in comments provided to Al Jazeera.

Last month, the US Supreme Court ruled against the president for his use of the International Emergency Economic Powers Act (IEEPA). The high court said the president exceeded his authority and that the tariffs imposed under that order must be refunded. However, the president then imposed new tariffs not covered by IEEPA.

The White House announced a 15 percent tariff through Section 122, which allows the president to impose tariffs for 150 days. Those changes were reflected in the producer price index report released by the US Department of Labor’s Bureau of Labor Statistics on Wednesday.

Wholesale prices rose by 0.7 percent for the month, marking the biggest one-month surge in a year. Goods prices rose 1.1 percent overall after tumbling for two months. Energy prices rose by 2.3 percent, with the cost of gas or petrol rising by 1.8 percent. Those costs are expected to get higher as tensions rise in the Strait of Hormuz following joint US-Israel strikes on Iran in late February and the subsequent retaliation.

“In the near term, higher energy prices will push up overall inflation; however, it is too soon to know the scope and duration of the potential effects on the economy,” Fed Chair Jerome Powell told reporters.

In the last month, petrol prices have jumped for US consumers. The average price for a gallon of regular gasoline is $3.84, up from $2.92 this time last month.

“The Fed’s inflation worries extend beyond weathering a fleeting wave of one-off price hikes associated with tariffs and, more recently, an energy price spike,” Stephen Stanley, chief US economist at Santander US Capital Markets, told the Reuters news agency.

Labour market stalls

Holding rates steady also comes as the job market stagnates. The latest jobs report, which was released earlier this month, showed that the US economy lost 92,000 jobs, with unemployment rising to 4.4 percent.

Meanwhile, the Job Openings and Labor Turnover Survey, or JOLTS report, which came out last week, showed 6.9 million open jobs in the US, unchanged from the month prior. That shows that employer hiring has stalled and that those who have jobs are seldom leaving for new ones.

“This might be one of the toughest moments in recent memory for the Federal Reserve’s Open Market Committee,” Michael Linden, Senior Policy Fellow at the Washington Center for Equitable Growth, said in remarks provided to Al Jazeera. “Recent data has revealed that economic growth in the back half of last year was extremely weak, the labour market seems to be on the precipice of disaster, and prices keep rising faster than anyone feels comfortable with.”

Political undercurrents

Wednesday’s decision is the second-to-last one of current Fed Chair Powell, whose term is up in May. Powell, who was first appointed by Trump during his first administration, has been a target of Trump’s scorn and criticisms for not cutting interest rates fast enough.

“When is ‘Too Late’ Powell lowering INTEREST RATES?” Trump posted on his social media platform Truth Social on Wednesday morning ahead of the decision.

Previously, Trump said he would not nominate someone to lead the central bank unless the nominee agreed with his position.

“Anybody that disagrees with me will never be the Fed Chairman!” Trump said in a post on Truth Social in December.

“We at the Fed will continue to do our jobs with objectivity, integrity and deep commitment to serve the American people,” Powell told reporters.

Trump’s nominee to succeed Powell, Kevin Warsh, has his nomination in flux as Republican Senator Thom Tillis said he would not vote to advance any of Trump’s nominees to the central bank until a criminal probe into the current chairman, Powell, is closed.

Tillis sits on the Senate Banking Committee, which vets nominees for the central bank, including Warsh. He said he will not approve Trump’s Fed nominees until the probe of Powell is closed. The criminal probe of Powell centres on Fed building renovations after a judge quashed grand jury subpoenas and called the investigation a pretext to pressure the central bank to lower interest rates.

If Warsh has not been confirmed by the Senate in time for the Fed’s June 16–17 meeting, Powell would continue to lead the rate-setting Federal Open Market Committee.

“If my successor is not confirmed by the end of my term as chair, I would serve as chair pro tem until he is confirmed. That is what the law calls for,” Powell said.

“On the question of whether I will leave while the investigation is ongoing, I have no intention of leaving the board until the investigation is well and truly over with transparency and finality.”

Introduction

In 1974, Muhammad Yunus began experimenting with an initiative to give small loans to impoverished rural women to foster a sense of empowerment through entrepreneurial start-ups – an initiative that was institutionalised through the famous Grameen Bank. In just a couple of years, this initiative had snowballed into the United Nations declaring 2005 the International Year of Microcredit, with Yunus winning the Nobel Peace Prize for economic development.

In an age of international globalisation and neoliberal theories, microcredit seemed to be the solution to the ills of the developing world. Economists, development theorists, and journalists began to discuss the multiple success stories from the Grameen Bank and the vast impact small loans were having on people.

But a much darker reality came to take place. Although Yunus said that credit is a human right, he failed to address the fact that debt follows. Stories like Razia’s became far too frequent.

The Feminisation of Debt: Razia’s Story

Razia had taken out an initial microcredit loan of around $50 from Grameen Bank to put food on the table and pay for her children’s education; to her, this money was a lifeline to meet her family’s immediate needs. She was offered an interest rate of 20%, which she did not initially realise due to her limited fiscal literacy, and she could not pay.

Loan sharks targeted her family with violent threats when they were unable to meet payment deadlines; she had to sell her heirloom jewellery, her belongings, and eventually her home to make the payment – and even now, she continues to face threats from the loan sharks.

Razia’s story is not uncommon and illustrates how a linear model of microcredit has led to the feminisation of debt: women took out these loans to cover basic needs and fulfil their societal roles as caretakers, only to be uniquely burdened and targeted because they were unable to meet deadlines. This led women to be prone to economic vulnerability, social shame due to the procurement of debt, and violence from debt collectors.

Questioning the Efficacy of Microfinance

In addition to Razia’s story, the reality of the Grameen Bank’s efficacy is also up for debate. More and more economists became wary of the narrative that microfinance helps start income-generating enterprises, and recognised that this led many to feed their families or afford education. Another fundamental assumption was that microfinance would empower the poor, especially women, through microenterprises, given their financial bargaining power within the community. The neoliberal social policies used to model microenterprises for poor rural women to sell their labour or to ‘sub-contract’ their services were broadly not adopted, and forced women into disempowering roles in the informal sector.

Dr. Lamia Karim conducted research on the particular claims on gender empowerment by microcredit programmes and ended up creating a ‘local economy of shame’; repayment of these loans was tied to a woman’s standing and honour within the community, and these norms created environments of disempowerment, subjugation, and stress to repay the loans.

Theoretical Frameworks: From WID to GAD

Yunus’s microcredit initiative followed the theoretical prescriptions of Women in Development (WID), which sought to address gender-based economic disparities and integrate women into existing economic systems. The Grameen Bank was able to meet these goals; however, the linear model of empowerment used and the integration of women within the neoliberal economic market failed to meet the overall goals of empowerment.

As organisations, advocates, and economists saw the initial model struggling to meet the holistic goals of empowerment, they integrated theoretical prescriptions from Gender and Development (GAD), which sought to confront the root causes of gender inequality and to meet both the practical and strategic needs of women. This empowers women not only to meet economic goals to ensure survival, but also to develop collective action skills to confront power structures that lead to their subjugation.

Proshika: A New Model for Empowerment

Proshika was formed in 1979 under the WID model and focused on targeting rural communities, but realigned its goals with a GAD model in 2009. Their mission statement was revised to reflect the integration of collective-action training into their microcredit initiatives. As an organisation, they planned to “develop their capacity, so they can claim their due rights from the government” and “ensure life security” – a revolutionary shift within the broader conversation about microcredit.

Proshika had a model very similar to the Grameen Bank microcredit programmes; however, they added organisational spaces for women to meet and discuss community issues, embedding collective action within the programme. When a woman signed up for a loan, she was connected with other women in her community and asked to discuss pressing issues. Proshika organised a total of 42,809 groups; these various groups looked into important societal issues, such as the prevention of child marriage, the prevention of violence against women, and the abolition of dowry practices.

These trainings connected women with existing government systems and taught them how to access the judicial system, enabling them to pursue institutional avenues of change.

Building Social Capital and Political Agency

These spaces within the community allow women to build social credit, serving as places where information flows and as essential spaces for building trust and relationships. They increase social awareness, social interaction outside of one’s family unit, and increase domestic power and civic participation.

Dr Paromita Sanyal studies the role of microfinance agencies in Bangladesh, and credits NGOs such as Proshika for building both vertical and horizontal lines of social credit. Vertical social credit enables women to build essential connections within their own communities, and horizontal social credit allows them to connect with NGOs, politicians, and governing bodies. This axis of power builds political agency within communities and empowers women to challenge restrictive gender norms.

Proshika operates in 8,784 villages, 1,639 unions, 266 sub-districts, 42 districts, and 7 divisions within Bangladesh – they have organised 33,982 female groups across the nation. Through their collective action programmes, they were able to see a statistically significant decrease in child marriages, dowries, and gender-based violence within rural villages.

Towards True Empowerment

Proshika’s microfinance initiative not only enabled income-generating activities in rural villages but also empowered women to make a difference in their communities. Proshika’s success story should serve as a model for reforming existing microfinance institutions and incorporating collective action mechanisms into programmes.

Unlike the Grameen Bank, which focused solely on women’s practical needs, Proshika made an effort to address women’s and community members’ strategic needs. This led to statistically significant decreases in domestic violence and child marriages, as well as increased awareness of government systems and the justice system as a whole, with civic engagement opening accessible avenues for change.

Dr. Andrea Cornwall’s critical feminist analysis of women’s empowerment suggests that true empowerment is about changing asymmetrical power relations and requires building critical consciousness to help people recognise fundamental inequalities. Empowerment is relational and involves the interplay between personal and political to create a process, rather than focusing on an outcome.

Unlike the Grameen Bank, Proshika focused more on the various aspects of empowerment, without adopting a linear view of tangible results. This led to successful grassroots movements that brought attention to women’s structural needs and raised awareness of women’s value to community spaces.

Empowerment comes from changing power relations within the community, and Proshika met both women’s practical and strategic needs. It is essential to address the extreme poverty that women face, but also to build avenues for them to challenge the institutions they participate in.

March 5 (Asia Today) — China has lowered its economic growth target to between 4.5% and 5% for 2026, marking the lowest level in about 35 years as the country grapples with deflation, weak domestic demand and mounting external pressures.

Chinese Premier Li Qiang announced the target Wednesday in a government work report at the opening of the Fourth Session of the 14th National People’s Congress in Beijing.

The new range represents a modest reduction from the government’s previous goal of growth of “around 5%,” which had been maintained for the past three years. The change signals that Chinese leaders acknowledge mounting economic challenges.

One of the biggest concerns is the prolonged downturn in the country’s real estate sector, which analysts estimate accounts for roughly a quarter of China’s gross domestic product. The continued slump has contributed to weakening consumer spending.

Youth unemployment, U.S. tariffs and technology restrictions and broader global uncertainty have also weighed on the outlook, making even the lower end of the target difficult to achieve.

Despite the slowdown, Beijing signaled plans to support the economy through fiscal stimulus. Authorities plan to issue 1.3 trillion yuan in ultra-long-term special government bonds to finance major infrastructure projects and consumption subsidies.

The government also plans to issue an additional 300 billion yuan in special bonds to strengthen the capital base of state-owned commercial banks.

China’s defense budget will rise 7% this year to 1.9096 trillion yuan, slightly lower than the 7.2% increases recorded annually over the past three years.

The continued growth in military spending underscores Beijing’s commitment to modernizing its armed forces ahead of the centennial of the People’s Liberation Army in 2027.

Li also outlined long-term goals tied to the country’s upcoming 15th Five-Year Plan for 2026-2030, saying China aims to maintain steady economic expansion and double per capita GDP by 2035 compared with 2020 levels.

The premier said China will increase research and development spending by more than 7% annually during the plan period.

In foreign policy remarks, Li said China “firmly opposes hegemony and power politics,” a phrase widely interpreted as criticism of the United States.

However, the tone of the criticism was relatively restrained. Observers in Beijing say the cautious language may reflect efforts to ensure a smooth visit later this month by U.S. President Donald Trump for talks with Chinese President Xi Jinping.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260305010001413

Borge Brende has resigned from his roles as the president and CEO of the World Economic Forum (WEF), following revelations of his links with the late financier and convicted sex offender Jeffrey Epstein.

Brende, a former Norwegian foreign minister who became president of the WEF in 2017, announced his departure on Thursday, joining the ranks of prominent figures to have left their jobs or faced criminal investigations after their contacts with Epstein were revealed in files released by the US Department of Justice last month.

“After careful consideration, I have decided to step down as President and CEO of the World Economic Forum. My time here, spanning 8-1/2 years, has been profoundly rewarding,” Brende said in a statement, which made no mention of Epstein.

“I am grateful for the incredible collaboration with my colleagues, partners, and constituents, and I believe now is the right moment for the Forum to continue its important work without distractions.”

Brende’s departure came several weeks after the WEF, organiser of the annual Davos summit,⁠ launched an independent investigation into his relationship with Epstein, following revelations in the files that the Norwegian had three business dinners with the financier and had also communicated with him via email and text message.

Epstein was convicted of procuring a minor for prostitution in 2008, spending about a year in prison before his release.

His contacts with a network of wealthy and influential figures continued in the wake of his conviction until an investigation into the wealthy financier was reopened in 2019. Epstein died by suicide in prison that year while facing charges of sex trafficking underage girls.

Dinners, emails

Brende said in a statement earlier this month that during a visit to New York in 2018, he received an invitation from former Norwegian politician Terje Rod-Larsen to join him for dinner with several other leaders, plus “someone who was presented to me as an American investor, Jeffrey Epstein”.

“The following year, I attended two similar dinners with Epstein, alongside other diplomats and business leaders. These dinners, and a few emails and SMS messages, were the extent of my interactions with him,” he said.

“I was completely unaware of Epstein’s past and criminal activities.”

He said that had he known about Epstein’s background, he would have declined any contact with the convicted sex offender, adding that he regretted not having conducted a more thorough investigation into his past.

Investigation concluded

In a separate statement, Andre Hoffmann and Larry Fink, co-chairs of the WEF, said the independent review ⁠conducted by outside counsel into Brende’s ties with Epstein had concluded.

The findings stated there were no additional concerns beyond what had been previously disclosed, it ⁠added.

The co-chairs said the WEF’s Alois Zwinggi will serve ⁠as interim president and CEO, and that the forum’s board of trustees would oversee the leadership transition, including a plan to identify a permanent replacement.

Arrests and resignations

Epstein had ties to a long list of business and political leaders, whose links to the disgraced figure have now come under close scrutiny, resulting in arrests and resignations.

In Norway, Thorbjorn Jagland, former prime minister and former secretary-general of the Council of Europe, has been charged with “aggravated corruption” amid an investigation into his connections to Epstein, while Rod-Larsen and his wife Mona Juul, both diplomats, have also been charged.

Crown Princess Mette-Marit, the wife of Crown Prince Haakon, heir to Norway’s throne,  has also come under heavy scrutiny following the revelation of her close friendship with Epstein, issuing a public apology for her long association with him.

In the UK, prominent figures including Andrew Mountbatten-Windsor – formerly Prince Andrew – and Peter Mandelson, the former diplomat, minister, and adviser to multiple Labour Party prime ministers, have been arrested over alleged crimes linked to their relationships with Epstein.

In France, financial crimes prosecutors have opened an investigation into former Culture Minister Jack Lang, while in Slovakia, Miroslav Lajcak, former president of the UN General Assembly, resigned as security adviser to the country’s prime minister amid growing criticism over his correspondence with Epstein, uncovered in the files.

A growing number of prominent business and academic figures have also left their posts after their ties to Epstein were revealed.