the live, the worst, another story that may not be mainstream the, the way that you tell the story is what can make a difference. the hello, i'm adrian said again, this is counting the cost on al jazeera. you'll, we can look at the world of business. i think it all makes this week, it's being called a competitiveness crisis. the use investment income and productivity lagging behind the us in china. so can the folks economy catch up? the body wants india to become a developed country by 2047, but with the reduced power mentioned, the jersey term, the prime minister pushed through is economic reforms. and it's the 2nd largest

source of income off of hydrocarbons for saudi arabia. and it just tourism sector is boosted this year by the increase in the number of harsh to the struggling with slow growth weak productivity and changing demographics. europe share of the global economy is shrinking at its lagging behind the us in china. its leaders are worried that the continent might not be able to catch up and want to make the you more competitive to achieve that. before the president of the european central bank, mario garcia says the block plates radical change. but getting more than 2 dozen nations in the blocked x jointly and calling about our way forward is challenging to say the least as katia lopez hold i on reports to europe's economy is struggling to keep up. the u. s. and china have outpaced the european union in investment, income and productivity. the world is changing fast,

and staying competitive is a new and growing challenge. it at least former prime minister mario the us heading a city of here of competitiveness. he warns the e you is working on an outdated framework design before cobit before the warrant ukraine. an before viable res, between super powers. we need your p and union that is free for 2 days and tomorrow's world. and so what i'm proposing in the report to the present, the commission asked me to prepare this radical change. but that is what is needed . that radical change, he says requires additional and investments of about $550000000000.00 in green and digital technologies every year. and vicious plans to boost renewable energy and domestic supply chains are falling behind. productivity growth is lower than other major economies. while energy prices are much higher. but there are signs of

improvement. the european central bank issued its 1st interest rate cut in 5 years, lowering a quarter of a percentage point. the progress has been made in tackling inflation, but the fight this far from over. despite the progress of a recent quarters, domestic price pressures remain strong. as wage growth is elevated, and inflation is likely to stay above target well into next year. and the recent e u elections, fluoride parties make gains, adding uncertainty to the blocks political and economic direction. more than 2 dozen countries make up the you. they may share the euro, but they often different priorities, strengths and long term vision funds in the me. i believe you guys have us to miss . we have a lot of problems with dealing with rising prices and also migration. these issues

that haven't been addressed properly by the same political system that's been governing europe for decades. how these countries move forward now as the block will likely determine their economic ranking, competitiveness for generations. see a little bit again, how does 0 for accounting to call? well, let's take a look at how big or pay an american economy is compare. for example, bloomberg economics, it's just a gap between the 2 in terms of gdp amounted to 18 percent. that's more than 3 trillion dollars between 202023. it predicts that sure full will reach almost 40 percent by 2050. private investment lags behind 2 launch corporations invested 60 percent less than 2020 to the american counter pods. according to the mackenzie global institute, per capita income is on average 27 percent low up in the united states, and productivity growth is slower and other major economies will energy prices

a much higher. the has taken some steps to keep up at post a green deal industrial plan to speed the energy transition proposed to the industrial defense policy for the 1st time. but that's dwarfed by the amount of resources committed by the us and china. that's freaked out to frederick ericsson, who is the director of the european sense of international political economy. he joins a set from berlin to, to have you with a set frederick. what's it going to take to prevent your sliding into irrelevance in terms of economic plans and becoming a much diminished global power? there's many things that need to happen, and i think you've already pointed to many of them in the report that you just had . we need to raise economic growth in europe, and we need to raise it a lot. we have had to sort of in the core, you an economy which has been growing at less than one percent year over the last

uh, 12 years. and we probably need to raise that rates on after you sent to 50 percent, if we're going to catch up on the economies in the world that have been moving ahead fast then europe. so a very, very strong focus on raising the growth levels and getting that sort of underlying dynamism in the european economy to work again, that's what's required. but with national governments often putting their own interests ahead of that in the block with 27 economies, but aren't yet fully integrated. to what extent is, is your lack of competitiveness. i'm not of simply copy cracked. i want to get it can be cracked, but it's i don't think we should expect that a big pop down solution coming from brussels that are going to instructs romo berlin. no power is what they going to do in order to arrive revise the economic growth. a lot of this needs to happen locally, nationally. we're talking about performance about bringing up the economies about liberating capital markets so that all the savings that europeans have,

that they actually can put to corporate cues. we talking about radically increasing spending on r and d and making sure that there is european companies that are at the frontier of global technological change. i mean that's, that's the sort of things that we've been missing to do over the last 25 years. and that's also explains why we've been folding in these over to you over sort of richness rankings. that you, that you are noted to. ready average you come to right now, we wouldn't be pours on mississippi. if we were to be a state in the united states, to what extent the have your people intentionally chosen to be less competitive by, for instance, all things work few hours will never american counterparts. it's, it's all part of the, the european way of life is this. well, i mean, that's what many people think it is. and i mean, if you want to sort of explain why i sort of say,

the average american was having a higher income and then a european until say, in 1995. the main explanation was that the average american was working longer hours than the europeans were. since then, there hasn't been much change in sort of how much your pains work and how much american square, what has changed is that for every, all of that goes into the economy, the us walker has become so more productive than the work or has been the work intended to be more productive than the average american walker until late 19 nineties. but for the past 2025 years, there's been sort of a gap going in the opposite direction where the use economy is more productive. and that doesn't mean that it's strain more working hours, the more capital into the call and make it means that they are using all these inputs in a much smarter way. what about the argument? that's the competitiveness should be left to the open markets and that it's not

a collective action by government, but it's needed if it's more private investment. and i think that's obviously the case. i mean, it's going to be an extraordinary difficult task if a government or the european union and brussels would, or to set itself task to sort of in a command economy structure, trying to deliver that growth on its own volition. it is the market. it is companies that aren't going to be the major drive as of this change, but the markets and the companies also need to be liberated right now. we have had a dozen of he is with a rapid increase in, in regulations, in europe and regulations that are in most cases going harder, deeper and faster than any of the comparable economy in the world. so that is a change which needs to come through political decisions. it's the same with problems we have with capital markets with r and d, with the size of investments. governments can do

a lot of things just by stepping out of the way and basically allowing the animal spirits so the market to do the job for them off the last weeks election. to what extent will the make up of the new european pond would make it easier or harder to make your more competitive? a lot of people voted for instance, a against immigration. they say they went for more right wing policies to pledge to reduce immigration. but that's what your needs to submit with with an aging population. immigration, it's going to be it's safe here when it comes to competitiveness. i don't think immigration itself is going to be a safer, a panacea, but i think you're absolutely right that your needs for integration, immigration, it also needs more immigration across the board and perhaps what we missing the most right now is high skills integration. we have a global competition for tenants, and europe right now is not winning bunch competition. we educate a lot of engineers. computer engine is a i engine is in europe,

but we haven't met the level the people educating themselves in europe and then moving to other parts of the world the cause. but it's much more action in other parts of the world in these technologies. so it's perfectly reasonable why they want to go, but we need to reverse that trend and we need to sort of make it easier for companies in europe to higher uh to get access to the human capital they need to grow. what i would say though, is that i don't think the european election that we had now is changing that to much when it comes to the overall direction to european economy. we did have advancements for extreme right parties, but we also could see that the sense and the center oriented type of parts is basically kept to control them. they have the ability to form a majority in the problem. and right now, what we shouldn't worry about is much more developments that are happening in individual member states takes for instance, friend squared president mccomb had to call us not protection just because of the enormous search for the extreme right party in france during the election. and if

that party wants to take over the government in farms, i mean that's going to have tremendous consequences for the ability to turn it to columbia around. because that is a pocket which favors protectionism nationalism. it favors a very, very strong government that take, takes control over many companies and it's, it's going to be sort of a europe that becomes even more inward looking and think that it can hides itself into success. it's always good to talk to yourself on calculate the cost, but he thinks that they could be with us. thank you. about financial institutions in saddam's capital costume have been destroyed by the fighting between the army and parent military rapids support forces that's made it difficult. of course of people still trapped in the city to get access to money. while the price is a basic commodities of skyrocketed, hipaa move and reports from under mom. so my yeah,

the law has come to this shop and i'm doing man incidents, capital cartoon. not only to buy goods, but to get cash. she says it's the only way she can get some money from her bank account. after fighting between the 2, denise army and the parent military rapids support forces led to the destruction of many bags. and cartoon. how in bunker i use the online banking app because there's no way to be for bread, a groceries, unless i transfer to the shop owner here and get cash from here. and not everyone has to add the milk man doesn't have to advertise the grocery store doesn't have to add. so i come here to buy things and transfer extra to get cash. the conflict which spotted more than a year ago has seen the destruction and looting of many banks in the capital bills who can have relied on online banking apps to access their much needed savings. as the prices of goods continue to rise. with the more we rely on the transfers we get from outside and things are hard. so you can't always find cash. so we rely on the

online banking app. specifically the bank of cartoon. it's easier, more widely used. we can use it in shops, pharmacies, and exchange cash to transfers via the up. but the now common way of getting cash is not always available. online banking apps rely on the internet, but many parts of the capital and several states are experiencing an internet blackout. and this is what's most banks now here look like which has made it hard for millions across the country to get cash to buy their daily needs. the destruction of financial institutions has led to the loss of billions of denise pounds for the limits in people's abilities to access cash, even in safe areas. the state bank of have to has recently opened a branch and undermine. and that's been helpful for many. but it doesn't provide full surfaces where the vehicle on since the start of the staging of the month,

i get transferred from my relatives outside. so having access to my account is crucial. i conquered cash in the bank yet, but i can use other services. this gives me hope this things may improve. the banks here say they're working to provide services to their clients. but for now, the easiest way to do that is through the app, the data and say states we provide full services, but we're striving to provide those services in the capital as well. so that people don't risk their lives to go to other states to access their funds while banks try to find ways to provide services to their clients. so maria says she will continue to rely on shops to be able to access her account. and by what she and her family need, he but morgan ultra 0 on demand. now let's turn to india, where private as the render body has been sworn in for us. so his party, the pgp campaigns on india's explosive economic games. the nation now has the

world's 5th largest economy, but a high unemployment rate of income inequality, or among the biggest challenges facing body, introducing economic reforms to fix them and grow the economy even. so the could now be a challenge for the prime minister who lost his majority in parliament. bodies government has pledged to making the other was the largest economy in a few years time. invest to say that that could happen. if the country plays its cons, right? it's economy grew by more than 8 percent in the last fiscal year, and it's on track for more growth. let's take a look at the numbers. currently, the united states has the highest gd, paid around $27.00 trillion dollars. that's followed by china, germany and japan. india is the head of the u. k. with the g. d. p, a pulled and 3 and a half trillion dollars. now major brought driver of that growth is infrastructure . and now india is also looking towards manufacturing, which accounts for the 17 percent of g d p, that it's aiming to replace china as a global production hub. now, despite the explosive growth,

there are significant challenges. bolden, 40 percent of college graduates under the age of $25.00 unemployed. there's plenty of jobs in agriculture and construction, but vacancies, unlimited in other sectors. income inequality is also wife and automotives. watch a report by the world in a corner of the lab shows the richest one percent owns around 40 percent of india as well. so let's get stuck into this web transit. gosh, was a professor of economics at the university of massachusetts and hust in the united states to join us today from the bank called good to have you with this professor. so will private of somebody be able to push through tough business friendly reforms as the head of a coalition government? well, i think the real question is which business spends you this long as he already not pushed through the only ones the food that was in fact when he tried to do the found those which were in fact seen by thomas to be extremely against the both and

did i did go to them the farmers themselves, and i don't think he's going to try that again. i don't think the go in this shouldn't really have any major problems with what you would call the business family. but i would argue that continuing along the same route that these take him to the last 10 years will not be good for the indian economy. and that's all fine and even not be good for engine business. all right, so doesn't distress the results of all right. so, so what we're sure this 1st day, bye or seems to be they should really be employment generation and controlling and station the big issue of school people today at the lack of adequate jobs at the very high rises in cost of living, which means the really just that was stagnant, over about a decade on all funding and food. poverty is increasing. so you really have to address those. and that means focusing on the things that will create jobs focusing on more social services. i've had education sanitation, focusing on the smaller microwave museum enterprises and looking at the needs

because that's what i'm planning generation is dominant, going to be happening. what about his previous focus on manufacturing? hey, are you saying that the but that was probably a mistake that he did, he took his off the bowl the well, i don't think it was a mistake. it was just a faded attempt. that hasn't been any increase in the condition of manufacturing the engine economy. that hasn't been a significant increase in manufacturing employment. in fact, if anything does a slight decline. and so really, the problem is not that the, the intention is good, but the delivery was not bad. with many of the country's workforce, still on the skills and working in, in agriculture. what does the government need to do in terms of, of up skilling, an education right now? should that be a priority? absolutely. we have one of the few countries that didn't actually make an effort to change off to the band demik. we should have recognized the defendant, spent

a huge loss in education at all levels, especially for 1st generation and not as many of them forgot everything they have wanted score. we tried to do online learning in the country where, you know, even more back than attrition is relatively limited. and perhaps in both families it's only want to move out of the family, which means the children really can't access it for school work overtime. and so we've had a major loss and students we haven't really in what's in their required investment to make sure that we can recover that. so i think education should be a major part of the jeep of public education, not private times education, that people are being through the g for and then and not getting jobs. and what does the government need to do to bring down the countries high unemployment rate, particularly among the young? and i did decide to major areas where the employment has to go up. why it isn't public services govern kiwi massively under provide public services. i'll talk to the public health spending is only one percent of g d p. and we have very few as

well because public health workers, but population. so we need to do that as we need to dramatically increase on spending on education as well. as i've already mentioned, these a huge in the implement creating and they have positive multiplied effects. they will need to secondary employment benefits as well. and also the big potential employer in the country of the micro, small and medium enterprises. we have to make them via but at the moment it's a miracle that they can survive at the door because they faced all kinds of constraints, not just interest structure, which the government is looking at. but credit access, marketing, access, rule materials and knowledge technology. and so we need a package that will actually deliver to micros wondering medium enterprises, the same kind of playing fields, good logical operations get by definition, but professor i, i here. so i, we need to, we need to, we need to, the question is how well that's quite simple to have been so many proposals put forward in the previous government and i'm show again. and so in effect,

what we need to do is whether or not it's really a question of political with, of shifting the focus away from thinking that providing huge incentives to a fuel favorites, large corporations is going to solve either the employment problem or the diversification problem we need to focus specifically on these enterprises and we need to dramatically increase public services. that's fairly straightforward. it's not, you know, it's a no brain out about how to increase public employment in head. for example, you have to spend more and you have to recognize that you need to spend marks and provide the money for that. instead of just giving large tax breaks to be corporations, which is what the previous and what do they seem good? really good to talk to you on counting the cost for for so many thanks and thanks for being with us. a thank you. religious tourism contributes around $12000000000.00. the saudi arabia's economy each year and 20 percent if it's not oil g d p. revenue from the sector is expected to grow further. with an estimated

$1600000.00 pilgrims converging on is lumps for the a sites this year. the hodge pilgrimage is also a boon for travel agencies. airlines of the hospitality industry in the kingdom and the wide gulf region. well, saudi authorities have recently spent billions of dollars on developing the kingdoms holy sites and mecca and medina. the kingdom aims to increase hodge and overall capacity. the $13000000.00 pilgrims each year as part of its 20. so the vision to diversify the economy. performing hodge can cost upwards of $5000.00 per person. and it's one of the 5 pillars of islam. every muslim who is physically able and can afford it, is obliged to perform it at least once in the life. for more on this, let's talk to, to an up sleep who is a pop, the head of hospitality, tourism and pleasure. advisory for the middle east and north africa night, frank, a global real estate consultancy firm. he joins us now from re as detective with the subject. how important been to the sound of the economy is religious tourism.

thank you for having the religious tourism is a lot of the backbone of the overall tourism overall and tourism. imaging them is, is driving so does that really just door to them to come in the next day or target isn't on 30000000 really to stories which will keep crying as part of the region 2030. so it is playing a significant role. the i'm the or it used to be seasonal business now. um since uh, the doctor been diamond is uh, the business as of right now, it's a year around, but with the cities are touching it on some of the 75 percent knock offenses. so it's no more a season of business is so your own business and projections are if we keep driving in the coming years. uh, as the rest of the tourism is also on a uh, in a very positive uh uh your directory. but can the holy sites themselves cope with

an ever expanding number of, of pilgrims is, is the risk of over developing them a good test. and i think that there's a huge potential in the store. somebody, it's very much boils down to how much your infrastructure can take. so government is spending a lot from the enhancing the infrastructure. so the more you at spend and it has your infrastructure, the more capacity can be resolved. so already there are some of the $2000000000.00 in the pipeline just for these those cities to develop problem $231000.00 keys. and this is a bod from the infrastructure and development fund, which is not only the roman emergency bill and has by the joint did 221000 and coming to us. so with a, the, the continued expansion of the holy sites and the countries ability to, to deal with ever growing numbers of, of, of pilgrims. does that mean the costs for pilgrims themselves will come down over

when it continues to get more and more expensive? i think with the time that a lot of initiatives are taken by the government to the new a lines coming in. but as a landline community is a biggest feeder up towards the end of the stores of the country. so there is a limitation of that capacity, which is now we let every out coming in the, in the, in the, in the picture to more than you realize coming in. it's a big jump within k s it. it's really held to is that down plus when you have enough of facility enough for room and mentoring the pipeline, then for sure it's the deluging the, the because right now the, the capacity, the model is so high and the capacity is limited. it means it will help or, or the bush that rates up, which is made the overall expenses that it would be beyond the normal limits. but when you have enough room capacity, when you have a line capacity, it would help to bring the price to to,

to what people can afford. affordability is an bought up and it is a part of the overall scheme ready to go to talk to seth on counting the cost manufacturing day for being with us. thank you. thank you. by the way. um, that's a show for this week. if you'd like to comments on anything that you've seen, i'm a thinking on x, try to remember to use the hash tag h a c t c, or you could trucks. the line comes in the cost of out here at dot net is our email address. as always, there's plenty more few on lineup. i'll just do a dot com slash ctc. that takes you straight to a page and they will find individual reports links. they have an entire episode straight to catch up on, but that is it. so this edition of counting, the cost on adrian said again from the team here in the thanks for being with us. the news on al jazeera is next to unique perspectives. one picture is not going to tell the entire 8 months of the

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or the 19 palace to means that killed and 50 injured. and then these really strike on 3 homes in guys of 16. the play you're watching. i'll just hear a lie from jo. hi, i'm sending back. people also coming up. we meet the sudanese who've taken up arms against the power military rapids support forces while fight.