US, Europe, Issue Strictest Rules Yet on AI

washington — In recent weeks, the United States, Britain and the European Union have issued the strictest regulations yet on the use and development of artificial intelligence, setting a precedent for other countries.

This month, the United States and the U.K. signed a memorandum of understanding allowing for the two countries to partner in the development of tests for the most advanced artificial intelligence models, following through on commitments made at the AI Safety Summit last November.

These actions come on the heels of the European Parliament’s March vote to adopt its first set of comprehensive rules on AI. The landmark decision sets out a wide-ranging set of laws to regulate this exploding technology.

At the time, Brando Benifei, co-rapporteur on the Artificial Intelligence Act plenary vote, said, “I think today is again an historic day on our long path towards regulation of AI. … The first regulation in the world that is putting a clear path towards a safe and human-centric development of AI.”

The new rules aim to protect citizens from dangerous uses of AI, while exploring its boundless potential.

Beth Noveck, professor of experiential AI at Northeastern University, expressed enthusiasm about the rules.

“It’s really exciting that the EU has passed really the world’s first … binding legal framework addressing AI. It is, however, not the end; it is really just the beginning.”

The new rules will be applied according to risk level: the higher the risk, the stricter the rules.

“It’s not regulating the tech,” she said. “It’s regulating the uses of the tech, trying to prohibit and to restrict and to create controls over the most malicious uses — and transparency around other uses.

“So things like what China is doing around social credit scoring, and surveillance of its citizens, unacceptable.”

Noveck described what she called “high-risk uses” that would be subject to scrutiny. Those include the use of tools in ways that could deprive people of their liberty or within employment.

“Then there are lower risk uses, such as the use of spam filters, which involve the use of AI or translation,” she said. “Your phone is using AI all the time when it gives you the weather; you’re using Siri or Alexa, we’re going to see a lot less scrutiny of those common uses.”

But as AI experts point out, new laws just create a framework for a new model of governance on a rapidly evolving technology.

Dragos Tudorache, co-rapporteur on the AI Act plenary vote, said, “Because AI is going to have an impact that we can’t only measure through this act, we will have to be very mindful of this evolution of the technology in the future and be prepared.”

In late March, the Biden administration issued the first government-wide policy to mitigate the risks of artificial intelligence while harnessing its benefits.

The announcement followed President Joe Biden’s executive order last October, which called on federal agencies to lead the way toward better governance of the technology without stifling innovation.

“This landmark executive order is testament to what we stand for: safety, security, trust, openness,” Biden said at the time,” proving once again that America’s strength is not just the power of its example, but the example of its power.”

Looking ahead, experts say the challenge will be to update rules and regulations as the technology continues to evolve.

US accuses Kenyan officials of corruption in contract awards

Nairobi, Kenya — American firms are losing out on business and contracts in Kenya because top government officials demand bribes, the U.S. trade office said in a report released last week, warning that corruption will hurt foreign investment.

According to the Office of the U.S. Trade Representative, American businesses are finding it hard to secure Kenyan government contracts meant to develop the East African nation because senior government officials seek a bribe before awarding such jobs.

The 2024 National Trade Estimate Report on Foreign Trade Barriers said that the contracts are going mainly to foreign firms willing to pay the bribes.

This level of corruption, say the authors of the report, will cause Kenya to lose future investment from businesses and countries that shun or punish corrupt activities.

Cleophas Malala, secretary general of Kenya’s ruling party, acknowledged that Kenya’s procurement and payment system has been a problem but said President William Ruto and the government are working to solve the problem.

“We know it’s a challenge to us, but the president is keen on fighting corruption. You’ve seen how hard he has been. He moved very swiftly when the KEMSA saga came up,” Malala said, referring to a corruption scandal last year involving a $28 million contract that led to the dismissal of the top officials at Kenya’s Medical Supplies Authority.

“He has been steadfast in ensuring that any public officer who gets involved in corrupt activities languishes his position and faces the rule of law,” Malala said. “As a political party, we’ve said time and again that we are not going to defend anybody.”

According to a survey by Kenya’s Ethics and Anti-Corruption Commission, the country’s interior, health and transport ministries are the most corrupt. The survey showed that the size of the average bribe doubled in 2023.

Kenyan activist Boniface Mwangi told VOA that American businesses are simply being asked to follow what has become a standard procedure in Kenya.

“Kenyans pay bribes every day, not because they want to, but because they are forced to,” Mwangi said. “If you want to apply for an ID, you need to pay a bribe. You go to the police, you tell them to investigate a crime, you pay a bribe. You want to ask for a passport, you pay for a bribe. We are a bribe nation.

“One of the reasons the Chinese succeed in this country very well in doing business is because they are able to pay to play,” he said, adding, “The Americans are not told to do something that is not common. They’ve been asked to do what’s been the norm in this country. … Corruption is a way of life in our country.”

Last year, the Ethics and Anti-Corruption Commission said the lack of transparency, accountability and public participation in some government projects creates a breeding ground for corruption.

That aligns with the U.S. trade office report, which said American firms complained of excessive complexity and inefficiency in the procurement process for contracts.

Malala said the government is working to change some of the procurement laws to help fight corruption and allow investors to compete fairly.

“We would want to ensure that all our investors get justice when it comes to the procurement system,” he said.

Kenya finished low on the Transparency International corruption rankings for 2023, ranking 126th out of 180 countries measured for perception and prevalence of corruption.

Botswana leads calls on G7 countries to review diamond tracking initiative

GABORONE, BOTSWANA — Africa’s leading diamond producer, Botswana, has written to the Group of Seven leading industrial countries seeking to reverse an initiative requiring all producers to send gems to Belgium for certification. This follows G7 move to prevent the import of diamonds mined in Russia.

Botswana President Mokgweetsi Masisi told diplomats in Gaborone Wednesday the G7 traceability mechanism poses an unfair burden on African diamond producers. 

The G7 is an informal grouping of seven of the world’s advanced economies, including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. They have required since March 1 that all diamonds entering G7 countries be sent through Antwerp, Belgium, to determine their origin.

The controls are meant to prevent Russian diamonds out of global markets amid concerns the revenues will be used to finance Russia’s Ukraine war.

“We cannot agree to an attempt to undermine our quest for development by taking charge and responsibility of our own value addition of our resources,” Masisi said. “Because if you make Belgium, Antwerp the single node for verification, gosh, what impudence. When we mine our diamonds here and we are certain they are mined here and you add another layer of cost, delay and time and risk to direct interaction with customers and clients and you take them still to Antwerp, it’s not acceptable.”

Masisi said African diamond producing countries were not consulted by the G7 before the measures were introduced in March.

“When the G7 made these propositions, that are inimical to our interests and particularly Botswana because we are one of the largest producers at least outside Russia,” he said. “They were essentially regulating our industry completely without our participation. You can’t do this without engaging us, particularly Botswana. They did reach out and send people here. The engagement was pretty patronizing. They had essentially made up their minds.”

Masisi said he is lobbying other leaders to protest the controls.

 

 

Botswana, together with Angola and Namibia, two other African diamond producers, sent a letter protesting G7’s move but there has been no response.

“We wrote a letter, we authored the main letter, we shared it with other producing countries namely Namibia and Angola and we asked them to be co-signatories and with minor amendments we all co-signed and sent it to G7 and we have not gotten a response. Apparently they say they are consulting but the requirements have kicked in and luckily the World Diamond Council has also protested because there has been serious disruption to the flow of diamond trade, and cost implications and delays.”

Masisi said Botswana in particular already has advanced verification and traceability systems. 

The G7 move is seen as undermining the Kimberley Process, an existing commitment to remove conflict diamonds from the global supply chain.

“The African Diamond Producers Association is very right to protect their interests,” said Jaff Bamenjo, coordinator of the Kimberley Process Civil Society Coalition, which acts as an observer of the Kimberly Process. 

“That is legitimate. However, the G7 is also right to protect the values and principles they cherish and defend. The main issue to us, as the Kimberley Process Civil Society Coalition, is how much we accommodate the legitimate concerns of each other. That is the question. But I should say, the G7 in my opinion, from the very onset made a mistake not to consult the African diamond producers right from the initial stages.” 

Belgian-based diamond industry researcher Hans Merket told VOA traceability measures are necessary but that there is also a need to respond to African producers’ concerns. 

“A serious advancement of traceability in the diamond trade is long overdue,” Merket said. “Too many actors have been overtly comfortable in a lack of transparency for many years. I think delays in the implementation of the scheme in the first month were a growing pain and have already been partly resolved after some adaptations. The added costs I think are also manageable given that the scheme only applies to more valuable diamonds of about 1 carat.”

More than 100 diamond businesses recently wrote a letter to the Antwerp World Diamond Centre expressing concerns over delays in customs clearance of diamonds since the G7 introduced the traceability measures.

US employers added 303,000 jobs in March in sign of economic strength

WASHINGTON — America’s employers delivered another outpouring of jobs in March, adding a sizzling 303,000 workers to their payrolls and bolstering hopes that the economy can vanquish inflation without succumbing to a recession in the face of high interest rates. 

Last month’s job growth was up from a revised 270,000 in February and was far above the 200,000 economists had forecast. By any measure, it amounted to a strong month of hiring, and it reflected the economy’s ability to withstand the pressure of high borrowing costs resulting from the Federal Reserve’s interest rate hikes. With the nation’s consumers continuing to spend, many employers have kept hiring to meet steady customer demand. 

Friday’s report from the Labor Department also showed that the unemployment rate dipped to 3.8% from 3.9% in February. That rate has now come in below 4% for 26 straight months, the longest such streak since the 1960s. 

Normally, a blockbuster bounty of new jobs would fan worries that the additional spending from those new workers could accelerate inflation. But the March jobs report showed that wage growth was mild last month, which might allay any such fears. Average hourly wages were up 4.1% from a year earlier, the smallest year-over-year increase since mid-2021. But hourly pay rose 0.3% from February to March after increasing 0.2% the month before. 

The economy is sure to weigh on Americans’ minds as the November presidential vote nears and they assess President Joe Biden’s reelection bid. Many people still feel squeezed by the inflation surge that erupted in the spring of 2021. Eleven rate increases by the Fed have helped send inflation tumbling from its peak over the past year and a half. But average prices are still about 18% higher than they were in February 2021 — a fact for which Biden might pay a political price. 

The Fed’s policymakers are tracking the state of the economy, the job market and inflation to determine when to begin cutting interest rates from their multidecade highs — a move eagerly awaited by Wall Street traders, businesses, homebuyers and people in need of cars, household appliances and other major purchases that are typically financed. Rate cuts by the Fed would likely lead, over time, to lower borrowing rates across the economy. 

The central bank’s policymakers started raising rates two years ago to try to tame inflation, which by mid-2022 was running at a four-decade high. Those rate hikes — 11 of them from March 2022 through July 2023 — helped drastically slow inflation. Consumer prices were up 3.2% in February from a year earlier, far below a year-over-year peak of 9.1% in June 2022. 

Yet the sharply higher borrowing costs for individuals and companies that resulted from the Fed’s rate hikes were widely expected to trigger a recession, with waves of layoffs and a painful rise in unemployment. Yet to the surprise of just about everyone, the economy has kept growing steadily and employers have kept hiring at a healthy pace. Layoffs remain low. 

Some economists believe that a rise in productivity — the amount of output that workers produce per hour — made it easier for companies to hire, raise pay and post bigger profits without having to raise prices. In addition, an influx of immigrants into the job market is believed to have addressed labor shortages and slowed upward pressure on wage growth. This helped allow inflation to cool even as the economy kept growing. 

In the meantime, the Fed has signaled that it expects to cut rates three times this year. But it is awaiting more inflation data to gain further confidence that annual price increases are heading toward its 2% target. Some economists have begun to question whether the Fed will need to cut rates anytime soon considering the consistently durable U.S. economy.

Scathing federal report rips Microsoft for response to Chinese hack

BOSTON — In a scathing indictment of Microsoft corporate security and transparency, a Biden administration-appointed review board issued a report Tuesday saying “a cascade of errors” by the tech giant let state-backed Chinese cyber operators break into email accounts of senior U.S. officials including Commerce Secretary Gina Raimondo.

The Cyber Safety Review Board, created in 2021 by executive order, describes shoddy cybersecurity practices, a lax corporate culture and a lack of sincerity about the company’s knowledge of the targeted breach, which affected multiple U.S. agencies that deal with China.

It concluded that “Microsoft’s security culture was inadequate and requires an overhaul” given the company’s ubiquity and critical role in the global technology ecosystem. Microsoft products “underpin essential services that support national security, the foundations of our economy, and public health and safety.”

The panel said the intrusion, discovered in June by the State Department and dating to May, “was preventable and should never have occurred,” and it blamed its success on “a cascade of avoidable errors.” What’s more, the board said, Microsoft still doesn’t know how the hackers got in.

The panel made sweeping recommendations, including urging Microsoft to put on hold adding features to its cloud computing environment until “substantial security improvements have been made.”

It said Microsoft’s CEO and board should institute “rapid cultural change,” including publicly sharing “a plan with specific timelines to make fundamental, security-focused reforms across the company and its full suite of products.”

In a statement, Microsoft said it appreciated the board’s investigation and would “continue to harden all our systems against attack and implement even more robust sensors and logs to help us detect and repel the cyber-armies of our adversaries.”

In all, the state-backed Chinese hackers broke into the Microsoft Exchange Online email of 22 organizations and more than 500 individuals around the world — including the U.S. ambassador to China, Nicholas Burns — accessing some cloud-based email boxes for at least six weeks and downloading some 60,000 emails from the State Department alone, the 34-page report said. Three think tanks and foreign government entities, including a number of British organizations, were among those compromised, it said.

The board, convened by Homeland Security Secretary Alejandro Mayorkas in August, accused Microsoft of making inaccurate public statements about the incident — including issuing a statement saying it believed it had determined the likely root cause of the intrusion “when, in fact, it still has not.” Microsoft did not update that misleading blog post, published in September, until mid-March, after the board repeatedly asked if it planned to issue a correction, it said.

Separately, the board expressed concern about a separate hack disclosed by the Redmond, Washington, company in January, this one of email accounts — including those of an undisclosed number of senior Microsoft executives and an undisclosed number of Microsoft customers — and attributed to state-backed Russian hackers.

The board lamented “a corporate culture that deprioritized both enterprise security investments and rigorous risk management.”

The Chinese hack was initially disclosed in July by Microsoft in a blog post and carried out by a group the company calls Storm-0558. That same group, the panel noted, has been engaged in similar intrusions — compromising cloud providers or stealing authentication keys so it can break into accounts — since at least 2009, targeting companies including Google, Yahoo, Adobe, Dow Chemical and Morgan Stanley.

Microsoft noted in its statement that the hackers involved are “well-resourced nation state threat actors who operate continuously and without meaningful deterrence.”

The company said that it recognized that recent events “have demonstrated a need to adopt a new culture of engineering security in our own networks,” and added that it had “mobilized our engineering teams to identify and mitigate legacy infrastructure, improve processes, and enforce security benchmarks.”

US, Britain announce partnership on AI safety, testing

WASHINGTON — The United States and Britain on Monday announced a new partnership on the science of artificial intelligence safety, amid growing concerns about upcoming next-generation versions.

Commerce Secretary Gina Raimondo and British Technology Secretary Michelle Donelan signed a memorandum of understanding in Washington to jointly develop advanced AI model testing, following commitments announced at an AI Safety Summit in Bletchley Park in November.

“We all know AI is the defining technology of our generation,” Raimondo said. “This partnership will accelerate both of our institutes work across the full spectrum to address the risks of our national security concerns and the concerns of our broader society.”

Britain and the United States are among countries establishing government-led AI safety institutes.

Britain said in October its institute would examine and test new types of AI, while the United States said in November it was launching its own safety institute to evaluate risks from so-called frontier AI models and is now working with 200 companies and entites.

Under the formal partnership, Britain and the United States plan to perform at least one joint testing exercise on a publicly accessible model and are considering exploring personnel exchanges between the institutes. Both are working to develop similar partnerships with other countries to promote AI safety.

“This is the first agreement of its kind anywhere in the world,” Donelan said. “AI is already an extraordinary force for good in our society and has vast potential to tackle some of the world’s biggest challenges, but only if we are able to grip those risks.”

Generative AI, which can create text, photos and videos in response to open-ended prompts, has spurred excitement as well as fears it could make some jobs obsolete, upend elections and potentially overpower humans and catastrophic effects.

In a joint interview with Reuters Monday, Raimondo and Donelan urgent joint action was needed to address AI risks.

“Time is of the essence because the next set of models are about to be released, which will be much, much more capable,” Donelan said. “We have a focus one the areas that we are dividing and conquering and really specializing.”

Raimondo said she would raise AI issues at a meeting of the U.S.-EU Trade and Technology Council in Belgium Thursday.

The Biden administration plans to soon announce additions to its AI team, Raimondo said. “We are pulling in the full resources of the U.S. government.”

Both countries plan to share key information on capabilities and risks associated with AI models and systems and technical research on AI safety and security.

In October, Biden signed an executive order that aims to reduce the risks of AI. In January, the Commerce Department said it was proposing to require U.S. cloud companies to determine whether foreign entities are accessing U.S. data centers to train AI models.

Britain said in February it would spend more than 100 million pounds ($125.5 million) to launch nine new research hubs and AI train regulators about the technology.

Raimondo said she was especially concerned about the threat of AI applied to bioterrorism or a nuclear war simulation.

“Those are the things where the consequences could be catastrophic and so we really have to have zero tolerance for some of these models being used for that capability,” she said.

Kia Recalls 427,000 Telluride SUVs; Could Roll Away While Parked

New York — Kia is recalling more than 427,000 of its Telluride SUVs due to a defect that may cause the cars to roll away while they’re parked.

According to documents published by the National Highway Traffic Safety Administration, the intermediate shaft and right front driveshaft of certain 2020-2024 Tellurides may not be fully engaged. Over time, this can lead to “unintended vehicle movement” while the cars are in park — increasing potential crash risks.

Kia America decided to recall all 2020-2023 model year and select 2024 model year Tellurides earlier this month, NHTSA documents show. At the time, no injuries or crashes were reported.

Improper assembly is suspected to be the cause of the shaft engagement problem — with the recall covering 2020-2024 Tellurides that were manufactured between Jan. 9, 2019, and Oct. 19, 2023. Kia America estimates that 1% have the defect.

To remedy this issue, recall documents say, dealers will update the affected cars’ electronic parking brake software and replace any damaged intermediate shafts for free. Owners who already incurred repair expenses will also be reimbursed.

In the meantime, drivers of the impacted Tellurides are instructed to manually engage the emergency brake before exiting the vehicle. Drivers can also confirm if their specific vehicle is included in this recall and find more information using the NHTSA site and/or Kia’s recall lookup platform.

Owner notification letters are otherwise set to be mailed out on May 15, with dealer notification beginning a few days prior.

The Associated Press reached out to Irvine, California-based Kia America for further comment Sunday. No comment was received.

Gmail Revolutionized Email 20 Years Ago

San Francisco — Google co-founders Larry Page and Sergey Brin loved pulling pranks, so they began rolling out outlandish ideas every April Fool’s Day not long after starting their company more than a quarter century ago. One year, Google posted a job opening for a Copernicus research center on the moon. Another year, the company said it planned to roll out a “scratch and sniff” feature on its search engine.

The jokes were consistently over-the-top, and people learned to laugh them off as another example of Google mischief. That’s why Page and Brin decided to unveil something no one would believe was possible 20 years ago on April Fool’s Day.

It was Gmail, a free service boasting 1 gigabyte of storage per account, an amount that sounds almost pedestrian in an age of 1-terabyte iPhones. But it sounded like a preposterous amount of email capacity back then, enough to store about 13,500 emails before running out of space compared to just 30 to 60 emails in the then-leading webmail services run by Yahoo and Microsoft. That translated into 250 to 500 times more email storage space.

Besides the quantum leap in storage, Gmail also came equipped with Google’s search technology so users could quickly retrieve a tidbit from an old email, photo or other personal information stored on the service. It also automatically threaded together a string of communications about the same topic, so everything flowed together as if it was a single conversation.

“The original pitch we put together was all about the three ‘S’s’ — storage, search and speed,” said former Google executive Marissa Mayer, who helped design Gmail and other company products before later becoming Yahoo’s CEO.

It was such a mind-bending concept that shortly after The Associated Press published a story about Gmail late on the afternoon of April Fool’s 2004, readers began calling and emailing to inform the news agency it had been duped by Google’s pranksters.

“That was part of the charm, making a product that people won’t believe is real. It kind of changed people’s perceptions about the kinds of applications that were possible within a web browser,” former Google engineer Paul Buchheit recalled during a recent AP interview about his efforts to build Gmail.

It took three years to do as part of a project called “Caribou” — a reference to a running gag in the Dilbert comic strip. “There was something sort of absurd about the name Caribou, it just made make me laugh,” said Buchheit, the 23rd employee hired at a company that now employs more than 180,000 people.

The AP knew Google wasn’t joking about Gmail because an AP reporter had been abruptly asked to come down from San Francisco to the company’s Mountain View, California, headquarters to see something that would make the trip worthwhile.

After arriving at a still-developing corporate campus that would soon blossom into what became known as the “Googleplex,” the AP reporter was ushered into a small office where Page was wearing an impish grin while sitting in front of his laptop computer.

Page, then just 31 years old, proceeded to show off Gmail’s sleekly designed inbox and demonstrated how quickly it operated within Microsoft’s now-retired Explorer web browser. And he pointed out there was no delete button featured in the main control window because it wouldn’t be necessary, given Gmail had so much storage and could be so easily searched. “I think people are really going to like this,” Page predicted.

As with so many other things, Page was right. Gmail now has an estimated 1.8 billion active accounts — each one now offering 15 gigabytes of free storage bundled with Google Photos and Google Drive. Even though that’s 15 times more storage than Gmail initially offered, it’s still not enough for many users who rarely see the need to purge their accounts, just as Google hoped.

The digital hoarding of email, photos and other content is why Google, Apple and other companies now make money from selling additional storage capacity in their data centers. (In Google’s case, it charges anywhere from $30 annually for 200 gigabytes of storage to $250 annually for 5 terabytes of storage). Gmail’s existence is also why other free email services and the internal email accounts that employees use on their jobs offer far more storage than was fathomed 20 years ago.

“We were trying to shift the way people had been thinking because people were working in this model of storage scarcity for so long that deleting became a default action,” Buchheit said.

Gmail was a game changer in several other ways while becoming the first building block in the expansion of Google’s internet empire beyond its still-dominant search engine.

After Gmail came Google Maps and Google Docs with word processing and spreadsheet applications. Then came the acquisition of video site YouTube, followed by the introduction of the Chrome browser and the Android operating system that powers most of the world’s smartphones. With Gmail’s explicitly stated intention to scan the content of emails to get a better understanding of users’ interests, Google also left little doubt that digital surveillance in pursuit of selling more ads would be part of its expanding ambitions.

Although it immediately generated a buzz, Gmail started out with a limited scope because Google initially only had enough computing capacity to support a small audience of users.

But that scarcity created an air of exclusivity around Gmail that drove feverish demand for elusive invitations to sign up. At one point, invitations to open a Gmail account were selling for $250 apiece on eBay. “It became a bit like a social currency, where people would go, ‘Hey, I got a Gmail invite, you want one?’” Buchheit said.

Although signing up for Gmail became increasingly easier as more of Google’s network of massive data centers came online, the company didn’t begin accepting all comers to the email service until it opened the floodgates as a Valentine’s Day present to the world in 2007.

New $20 Minimum Wage for California Fast Food Workers Starts Monday 

LIVERMORE, Calif. — Most fast food workers in California will be paid at least $20 an hour beginning Monday when a new law is scheduled to kick in giving more financial security to an historically low-paying profession while threatening to raise prices in a state already known for its high cost of living.

Democrats in the state Legislature passed the law last year in part as an acknowledgement that many of the more than 500,000 people who work in fast food restaurants are not teenagers earning some spending money, but adults working to support their families.

That includes immigrants like Ingrid Vilorio, who said she started working at a McDonald’s shortly after arriving in the United States in 2019. Fast food was her full-time job until last year. Now, she works about eight hours per week at a Jack in the Box while working other jobs.

“The $20 raise is great. I wish this would have come sooner,” Vilorio said through a translator. “Because I would not have been looking for so many other jobs in different places.”

The law was supported by the trade association representing fast food franchise owners. But since it passed, many franchise owners have bemoaned the impact the law is having on them, especially during California’s slowing economy.

Alex Johnson owns 10 Auntie Anne’s Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources.

Increasing his employees’ wages will cost Johnson about $470,000 each year. He will have to raise prices anywhere from 5% to 15% at his stores, and is no longer hiring or seeking to open new locations in California, he said.

“I try to do right by my employees. I pay them as much as I can. But this law is really hitting our operations hard,” Johnson said.

“I have to consider selling and even closing my business,” he said. “The profit margin has become too slim when you factor in all the other expenses that are also going up.”

Over the past decade, California has doubled its minimum wage for most workers to $16 per hour. A big concern over that time was whether the increase would cause some workers to lose their jobs as employers’ expenses increased.

Instead, data showed wages went up and employment did not fall, said Michael Reich, a labor economics professor at the University of California-Berkeley.

“I was surprised at how little, or how difficult it was to find disemployment effects. If anything, we find positive employment effects,” Reich said.

Plus, Reich said while the statewide minimum wage is $16 per hour, many of the state’s larger cities have their own minimum wage laws setting the rate higher than that. For many fast food restaurants, this means the jump to $20 per hour will be smaller.

The law reflected a carefully crafted compromise between the fast food industry and labor unions, which had been fighting over wages, benefits and legal liabilities for close to two years. The law originated during private negotiations between unions and the industry, including the unusual step of signing confidentiality agreements.

The law applies to restaurants offering limited or no table service and which are part of a national chain with at least 60 establishments nationwide. Restaurants operating inside a grocery establishment are exempt, as are restaurants producing and selling bread as a stand-alone menu item.

At first, it appeared the bread exemption applied to Panera Bread restaurants. Bloomberg News reported the change would benefit Greg Flynn, a wealthy campaign donor to Newsom. But the Newsom administration said the wage increase law does apply to Panera Bread because the restaurant does not make dough on-site. Also, Flynn has announced he would pay his workers at least $20 per hour.

IMF Confirms Increasing Egypt’s Bailout Loan To $8 Billion

CAIRO — The executive board of the International Monetary Fund confirmed a deal with Egypt to increase its bailout loan from $3 billion to $8 billion, in a move that is meant to shore up the Arab country’s economy, which is hit by a staggering shortage of foreign currency and soaring inflation.

In a statement late Friday, the board said its decision would enable Egypt to immediately receive about $820 million as part of the deal, which was announced earlier this month.

The deal was achieved after Egypt agreed with the IMF on a reform plan that is centered on floating the local currency, reducing public investment and allowing the private sector to become the engine of growth, the statement said.

Egypt has already floated the pound and sharply increased the main interest rate.

Commercial banks are now trading the U.S. currency at more than 47 pounds, up from about 31 pounds. The measures are meant to combat ballooning inflation and attract foreign investment.

The Egyptian economy has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from Russia’s full-scale invasion of Ukraine and, most recently, the Israel-Hamas war in Gaza. The Houthi attacks on shipping routes in the Red Sea have slashed Suez Canal revenues, which is a major source of foreign currency. The attacks forced traffic away from the canal and around the tip of Africa.

“Egypt is facing significant macroeconomic challenges that have become more complex to manage given the spillovers from the recent conflict in Gaza and Israel. The disruptions in the Red Sea are also reducing Suez Canal receipts, which are an important source of foreign exchange inflows and fiscal revenue,” said IMF Managing Director Kristalina Georgieva.

The IMF said such external shocks, combined with delayed reforms, have hurt economic activity. Growth slowed to 3.8% in the fiscal year 2022-23 due to weak confidence and foreign currency shortages and is projected to slow further, to 3%, in the fiscal year 2023-24 before recovering to about 4.5% in 2024-25, the IMF statement said.

The annual inflation rate was 36% in February, but is expected to ease over the medium term, the IMF said.

The currency devaluation and interest rate increase have inflicted further pain on Egyptians already struggling with skyrocketing prices over the past years. Nearly 30% of Egyptians live in poverty, according to official figures.

Finance Minister Mohamed Maait said the confirmation by the IMF executive board “reflects the importance of the correcting measures” taken by the government.

Egypt also this month signed a deal with the European Union that includes a 7.4 billion-euro ($8 billion) aid package for the most populous Arab country over three years.

To quickly inject much-needed funds into Egypt’s staggering economy, the EU intends to fast-track 1 billion euros ($1.1 billion) of the package, using an urgent funding procedure that bypasses parliamentary oversight and other safeguards, according to European Commission President Ursula von der Leyen.

West African Project Helps Women Farmers Claim Their Rights, Land

ZIGUINCHOR, Senegal — Mariama Sonko’s voice resounded through the circle of 40 women farmers sitting in the shade of a cashew tree. They scribbled notes, brows furrowed in concentration as her lecture was punctuated by the thud of falling fruit.

This quiet village in Senegal is the headquarters of a 115,000-strong rural women’s rights movement in West Africa, We Are the Solution. Sonko, its president, is training female farmers from cultures where women are often excluded from ownership of the land they work so closely.

Across Senegal, women farmers make up 70% of the agricultural workforce and produce 80% of the crops but have little access to land, education and finance compared to men, the United Nations says.

“We work from dawn until dusk, but with all that we do, what do we get out of it?” Sonko asked.

She believes that when rural women are given land, responsibilities and resources, it has a ripple effect through communities. Her movement is training women farmers who traditionally have no access to education, explaining their rights and financing women-led agricultural projects.

Across West Africa, women usually don’t own land because it is expected that when they marry, they leave the community. But when they move to their husbands’ homes, they are not given land because they are not related by blood.

Sonko grew up watching her mother struggle after her father died, with young children to support.

“If she had land, she could have supported us,” she recalled, her normally booming voice now tender. Instead, Sonko had to marry young, abandon her studies and leave her ancestral home.

After moving to her husband’s town at age 19, Sonko and several other women convinced a landowner to rent to them a small plot of land in return for part of their harvest. They planted fruit trees and started a market garden. Five years later, when the trees were full of papayas and grapefruit, the owner kicked them off.

The experience marked Sonko.

“This made me fight so that women can have the space to thrive and manage their rights,” she said. When she later got a job with a women’s charity funded by Catholic Relief Services, coordinating micro-loans for rural women, that work began.

“Women farmers are invisible,” said Laure Tall, research director at Agricultural and Rural Prospect Initiative, a Senegalese rural think tank. That’s even though women work on farms two to four hours longer than men on an average day.

But when women earn money, they reinvest it in their community, health and children’s education, Tall said. Men spend some on household expenses but can choose to spend the rest how they please. Sonko listed common examples like finding a new wife, drinking and buying fertilizer and pesticides for crops that make money instead of providing food.

With encouragement from her husband, who died in 1997, Sonko chose to invest in other women. Her training center now employs more than 20 people, with support from small philanthropic organizations such as Agroecology Fund and CLIMA Fund.

In a recent week, Sonko and her team trained over 100 women from three countries, Senegal, Guinea-Bissau and Gambia, in agroforestry – growing trees and crops together as a measure of protection from extreme weather – and micro gardening, growing food in tiny spaces when there is little access to land.

One trainee, Binta Diatta, said We Are the Solution bought irrigation equipment, seeds, and fencing — an investment of $4,000 — and helped the women of her town access land for a market garden, one of more than 50 financed by the organization.

When Diatta started to earn money, she said, she spent it on food, clothes and her children’s schooling. Her efforts were noticed.

“Next season, all the men accompanied us to the market garden because they saw it as valuable,” she said, recalling how they came simply to witness it.

Now another challenge has emerged affecting women and men alike: climate change.

In Senegal and the surrounding region, temperatures are rising 50% more than the global average, according to the Intergovernmental Panel on Climate Change, and the UN Environment Program says rainfall could drop by 38% in the coming decades.

Where Sonko lives, the rainy season has become shorter and less predictable. Saltwater is invading her rice paddies bordering the tidal estuary and mangroves, caused by rising sea levels. In some cases, yield losses are so acute that farmers abandon their rice fields.

But adapting to a heating planet has proven to be a strength for women since they adopt climate innovations much faster than men, said Ena Derenoncourt, an investment specialist for women-led farming projects at agricultural research agency AICCRA.

“They have no choice because they are the most vulnerable and affected by climate change,” Derenoncourt said. “They are the most motivated to find solutions.”

On a recent day, Sonko gathered 30 prominent women rice growers to document hundreds of local rice varieties. She bellowed out the names of rice – some hundreds of years old, named after prominent women farmers, passed from generation to generation – and the women echoed with what they call it in their villages.

This preservation of indigenous rice varieties is not only key to adapting to climate change but also about emphasizing the status of women as the traditional guardians of seeds.

“Seeds are wholly feminine and give value to women in their communities,” Sonko said. “That’s why we’re working on them, to give them more confidence and responsibility in agriculture.”

The knowledge of hundreds of seeds and how they respond to different growing conditions has been vital in giving women a more influential role in communities.

Sonko claimed to have a seed for every condition including too rainy, too dry and even those more resistant to salt for the mangroves.

Last year, she produced 2 tons of rice on her half-hectare plot with none of the synthetic pesticides or fertilizer that are heavily subsidized in Senegal. The yield was more than double that of plots with full use of chemical products in a 2017 U.N. Food and Agriculture Organization project in the same region.

“Our seeds are resilient,” Sonko said, sifting through rice-filled clay pots designed to preserve seeds for decades. “Conventional seeds do not resist climate change and are very demanding. They need fertilizer and pesticides.”

The cultural intimacy between female farmers, their seeds and the land means they are more likely to shun chemicals harming the soil, said Charles Katy, an expert on indigenous wisdom in Senegal who is helping to document Sonko’s rice varieties.

He noted the organic fertilizer that Sonko made from manure, and the biopesticides made from ginger, garlic and chili.

One of Sonko’s trainees, Sounkarou Kébé, recounted her experiments against parasites in her tomato plot. Instead of using manufactured insecticides, she tried using a tree bark traditionally used in Senegal’s Casamance region to treat intestinal problems in humans caused by parasites.

A week later, all the disease was gone, Kébé said.

As dusk approached at the training center, insects hummed in the background and Sonko prepared for another training session. “There’s too much demand,” she said. She is now trying to set up seven other farming centers across southern Senegal.

Glancing back at the circle of women studying in the fading light, she said: “My great fight in the movement is to make humanity understand the importance of women.”

Swedish Embassy Exhibit Highlights Uses of Artificial Intelligence

WASHINGTON — Artificial Intelligence for good is the subject of a new exhibit at the Embassy of Sweden in Washington, showing how Swedish companies and organizations are using AI for a more open society, a healthier world, and a greener planet.

Ambassador Urban Ahlin told an embassy reception that Sweden’s broad collaboration across industry, academia and government makes it a leader in applying AI in public-interest areas, such as clean tech, social sciences, medical research, and greener food supply chains. That includes tracking the mood and health of cows.

Fitbit for cows

It is technology developed by DeLaval, a producer of dairy and farming machinery. The firm’s Market Solution Manager in North America Joaquin Azocar says the small wearable device the size of an earring fits in a cow’s ear and tracks the animal’s movements 24/7, much like a Fitbit.

The ear-mounted tags send out signals to receivers across the farm. DeLaval’s artificial intelligence system analyzes the data and looks for correlations in patterns, trends, and deviations in the animals’ activities, to predict if a cow is sick, in heat, or not eating well.

As a trained veterinarian, Azocar says dairy farmers being alerted sooner to changes in their animals’ behavior means they can provide treatment earlier which translates to less recovery time.

AI helping in childbirth

There are also advances in human health. The developing Pelvic Floor AI project is an AI-based solution to identify high-risk cases of pelvic floor injury and facilitate timely interventions to prevent and limit harm.

It was developed by a team of gynecologists and women’s health care professionals from Sweden’s Sahlgrenska University Hospital to help the nearly 20% of women who experience injury to their pelvic floor during childbirth.

The exhibition “is a great way to showcase the many ways AI is being adapted and used, in medicine and in many other areas,” said exhibition attendee Jesica Lindgren, general counsel for international consulting firm BlueStar Strategies. “It’s important to know how AI is evolving and affecting our everyday life.”

Green solutions using AI

The exhibition includes examples of what AI can do about climate change, including rising sea levels and declining biodiversity.

AirForestry is developing technology “for precise forestry that will select and harvest trees fully autonomously.” The firm says that “harvesting the right trees in the right place could significantly improve overall carbon sequestration and resilience.”

AI & the defense industry

Outlining the development of artificial intelligence for the defense industry, the exhibit admits that “can be controversial.”

“There are exciting possibilities to use AI to solve problems that cannot be solved using traditional algorithms due to their complexity and limitations in computational power,” the exhibit states. “But it requires thorough consideration of how AI should and shouldn’t be utilized. Proactively engaging in AI research is necessary to understand the technology’s capabilities and limitations and help shape its ethical standards.”

AI and privacy

Exhibition participant Quentin Black is an engineer with Axis Communications, an industry leader in video surveillance. He said the project came out of GDPR, or General Data Protection Regulation; an EU policy that provides privacy to citizens who are out in public whose image could be picked up on video surveillance cameras.

The regulations surrounding privacy are stricter in Europe than they are in the U.S., Black said.

“In the U.S. the public doesn’t really have an expectation of privacy; there’s cameras everywhere. In Europe, it’s different.” That regulation inspired Axis Communications to develop AI that provides privacy, he explained.

Black pointed to a large monitor divided into four windows, to show how AI is being used to set up four different filters to provide privacy.

The Axis Live Privacy Shield remotely monitors activities both indoors and outdoors while safeguarding privacy in real time. The technology is downloadable and free, to provide privacy to people and/or environments, using a variety of filters.

In the monitor on display in the exhibition, Black explained the four quadrants. The upper right window of the monitor displays privacy with a full color block out of all humans, using AI to distinguish the difference between the people and the environment.

The upper left window provides privacy to the person’s head. The bottom left corner provides pixelization, or a mosaic, of the person’s entire/whole body, and the immediate environment surrounding the person. And the bottom right corner shows blockage of the environment, so “an inverse of the personal privacy,” Black explained.

“So, if it was a top secret facility, or you want to see the people walking up to your door without a view of your neighbor’s house, this is where this can this be applied.”

Tip of the iceberg

“I think that AI is on everybody’s thoughts, and what I appreciate about the House of Sweden’s approach in this exhibition is highlighting a thoughtful, scientific, business-oriented and human-oriented perspective on AI in society today,” said Molly Steenson, President and CEO of the American Swedish Institute.

Though AI and machine learning have been around since the 1950s, she says it is only now that we are seeing “the contemporary upswing and acceleration of AI, especially generative AI in things like large language models.”

“So, while large companies and tech companies might want us to speed up and believe that it is only scary or it is only good, I think it’s a lot more nuanced than that,” she said.

Chinese Leader to Dutch PM: Restricting Technology Access Won’t Stop China’s Advance

BEIJING — Chinese leader Xi Jinping told visiting Dutch Prime Minister Mark Rutte on Wednesday that attempts to restrict China’s access to technology will not stop the country’s advance. 

The Netherlands imposed export licensing requirements in 2023 on the sale of machinery that can make advanced processor chips. The move came after the United States blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. 

An online report from state broadcaster CCTV did not mention the chip machinery, but quoted Xi as saying that the creation of scientific and technological barriers and the fragmentation of the industrial and supply chains will lead to division and confrontation. 

“The Chinese people also have the right to legitimate development, and no force can stop the pace of China’s scientific and technological development and progress,” Xi said, according to CCTV. 

Dutch company ASML is the world’s only producer of machines that use extreme ultraviolet lithography to make advanced semiconductors. In 2023, China became ASML’s second-largest market, accounting for 29% of its revenue as Chinese companies bought up equipment before the licensing requirement took effect. 

 

Rutte, speaking to journalists after his meeting, declined to go into specifics of the talks. 

“What I can tell you is that … when we have to take measures, that they are never aimed at one country specifically, that we always try to make sure that the impact is limited, is not impacting the supply chain, and therefore is not impacting the overall economic relationship,” he said. 

The Dutch leader, who was accompanied by Trade Minister Geoffrey van Leeuwen on the trip, said the top issue for him in their meetings with Xi and Chinese Premier Li Qiang was the war in Ukraine. 

China has taken a neutral position on the war, providing Russia with diplomatic cover and economic support through trade. That stance has angered and frustrated much of Europe, which sees Russia as the aggressor and Ukraine as the victim. 

Rutte said it’s important for China to understand that “this is a direct security threat for us, because if Russia will be successful in Ukraine, it will be a threat to the whole of Europe. It will not end with Ukraine.” 

He added that he had asked China’s leaders “to put their considerable weight — and they can do that as far as I’m concerned in a very discreet way — but as much as possible on Russia to influence the course of events.” 

ASML, the Netherlands’ largest company, recently threatened to leave the country over anti-immigration policies that may impact the company’s ability to hire talent, leaving government officials scrambling to ensure that the firm does not leave. 

Van Leeuwen said this week in an interview with The FD, a Dutch business newspaper, that protecting the interests of ASML is a top priority but acknowledged that national security comes before economic interests. 

Beijing has repeatedly accused the U.S. of trying to hold back China’s economic development by restricting access to technology. In response, Xi has launched a campaign to develop home-grown chips and other high-tech products. 

“China always opposes the U.S. overstretching the concept of national security and making various excuses to coerce other countries into imposing a technological blockade against China,” Foreign Ministry spokesperson Wang Wenbin said in January. 

Rutte said that NATO and its growing ties with Asia did not come up at Wednesday’s talks. He is a leading candidate to be the next head of the alliance, which China has criticized for provoking regional tensions and making diplomatic forays into the Asia-Pacific region.

Chinese President Xi Meets With US Executives as Investment Wanes

BEIJING — China’s President Xi Jinping met American business leaders at the Great Hall of the People in Beijing on Wednesday, as the government tries to woo back foreign investors and international firms seeking reassurance about the impact of new regulations. 

Beijing wants to boost growth of the world’s second-largest economy after foreign direct investment shrank 8% in 2023 amid heightened investor concern over an anti-espionage law, exit bans, and raids on consultancies and due diligence firms. 

Xi’s increasing focus on national security has left many companies uncertain where they might step over the line, even as Chinese leaders make public overtures toward foreign investors. 

“China’s development has gone through all sorts of difficulties and challenges to get to where it is today,” Xi said, according to state media. 

“In the past, [China] did not collapse because of a ‘China collapse theory,’ and it will also not peak now because of a ‘China peak theory,'” he said. 

Stephen Schwarzman, co-founder and CEO of private equity firm Blackstone, Raj Subramaniam, head of American delivery giant FedEx, and Cristiano Amon, the boss of chips manufacturer Qualcomm, were part of the around 20-strong all-male U.S. contingent.  

The audience with Xi — organized by the National Committee on U.S.-China Relations, the U.S.-China Business Council and the Asia Society think tank — lasted around 90 minutes, according to a person with direct knowledge of the matter. 

The source, who declined to be named as they were not authorized to speak to the media, had no immediate comment on what was discussed. The National Committee on U.S.-China Relations and Asia Society did not immediately respond to requests for comment on the meeting. 

A statement from U.S.-China Business Council said the participants “stressed the importance of rebalancing China’s economy by increasing consumption there and encouraging the government to further address longstanding concerns with cross border data flows, government procurement, intellectual property rights, and improved regulatory transparency and predictability.” 

The U.S. and China are gradually resuming engagements after relations between the two economic superpowers sank to their lowest in years due to clashes over trade policies, the future of democratically ruled Taiwan and territorial claims in the South China Sea.