Archive for January, 2010
Meles Zenawi will probably win the election. But that may not bring calm
Jan 21st 2010 | ADDIS ABABA | From The Economist print edition
Getty Images
Upwardly mobile Meles
WORRIES about Ethiopia’s election, due in May, are growing. Aid-giving Western governments hope it will pass off without the strife that followed the last one, in 2005, when 200 people were killed, thousands were imprisoned, and the democratic credentials of Meles Zenawi, despite his re-election, were left in tatters.
Though poor and fragile, Ethiopia carries a lot of weight in the region. A grubby election could worsen things in neighbouring Sudan, where civil war threatens to recur. The borderlands near Kenya, where cattle raiding, poaching and banditry are rife, would become still more dangerous. A renewal of unrest in Ethiopia would be exploited by its arch-enemy, Eritrea, which already backs sundry rebel groups in an effort to undermine the country’s government. And it could make matters even worse in Somalia, where jihadist fighters linked to al-Qaeda want to weaken “Christian” Ethiopia, where a third of the people are in fact Muslim. Foreign intelligence sources have long feared a jihadist attack in Ethiopia’s capital, Addis Ababa.
Ethiopia is a country of contradictions. With its present population of around 82m growing by 2m a year, it is poised to overtake Egypt as Africa’s second-most-populous country after Nigeria, with around 150m. It hosts the seat of the African Union. It runs one of Africa’s biggest airlines. This year its economy is predicted to grow by 7%, one of the fastest rates in the world. It is wooing foreign investors with offers to lease 3m hectares of arable land. It is expensively branding its coffee for export.
Yet the grim side is just as striking. Hunger periodically stalks the land. Some 5m people rely on emergency food to survive; another 7m get food aid. Few people benefit from the country’s free market. Ethiopia has one of Africa’s lowest rates of mobile-phone ownership. Income per head is one of the most meagre in the continent.
All this is the responsibility of Mr Meles’s Ethiopian People’s Revolutionary Democratic Front (EPRDF), which has run the show since 1991. The party is dominated by former Marxist rebels from Tigray, even though Tigrayans, among them Mr Meles, make up only 6% of Ethiopia’s population. Not that Tigrayans want to cling to power, says Mr Meles brusquely. It is just that Ethiopia needs consistency to pursue a long-term development agenda. And the EPRDF can point to some successes. Since Mr Meles came to power, infant mortality has fallen by half, school attendance has risen dramatically and life expectancy has increased from 45 to 55 years.
Nourishing a liberal democracy or upholding human rights, however, has never been central to that agenda, even less so after Mr Meles clobbered the opposition in 2005. Some Western diplomats insist, implausibly, that politics has got better since. The government and some opposition parties have, for instance, signed a code of conduct for the coming election. Some of the opposition groups are genuine, but others are in hock to the EPRDF. In any case, the main opposition grouping, Forum, refused to join the talks, arguing that the EPRDF would exploit any agreement for its own ends. The government has been smothering potential sources of independent opposition, such as foreign and local NGOs. It insists it does not censor the press, but newspapers continue to close and independent journalists are moving abroad. Some farmers allege they are being denied food aid for political reasons.
Forum is demanding the release of one its leaders, Birtukan Mideksa, from prison. She was jailed with other opposition figures after the 2005 election, later pardoned, then arrested again. She is unlikely to be let out again before the poll as she could, some say, pose a real threat to the EPRDF in Addis Ababa and other cities.
Yet most Western governments seem keen to downplay Mr Meles’s human-rights record, hoping his re-election will keep his country stable. America is to disburse $1 billion in state aid to Ethiopia this year, more if covert stuff is included. Ethiopia can expect a similar amount from the European Union, multilaterally and through bilateral arrangements with Britain and others. And climate-change deals may bring Mr Meles even more cash.
Books: The Beautiful Things That Heaven Bears
Buy from www.ibexmarket.com
By Linda Kulman
“How was I supposed to live in America when I had never really left Ethiopia?” questions Sepha Stephanos, the protagonist of The Beautiful Things That Heaven Bears. That isolation and frustation of immigrant life is thoughtfully portrayed in the award-winning fictional debut from Dinaw Mengestu.
The story of an Ethiopian immigrant who fled his country’s communist revolution, The Beautiful Things That Heaven Bears follows him nearly two decades later, struggling to live the American dream, with a failing convenience store in a gentrifying Washington, D.C., neighborhood.
Praised by the New York Times Book Review as a “great African novel, a great Washington novel and a great American novel,” the book was awarded the Guardian First Book Award in 2007. The National Book Foundation included Mengestu on its list of “5 Under 35″ “as someone whose work is particularly promising and exciting.”
Mengestu, like his protagonist, was born in Ethiopia, but came to the United States in 1980 at the age of 2, a move that reunited his family after his father had been forced to flee. Mengestu was educated at Georgetown and Columbia University.
The author says the voice of the narrator “popped” into his head one night when he was walking in D.C. and “saw an Ethiopian immigrant behind the counter of a small, little grocery store.” And although the Times comments on Mengestu’s “fine ear for the way immigrants from damaged places talk in the sanctuary of their own company,” he says he “didn’t deliberately go off and research anything” to write the novel.
“Obviously, I come from a family of immigrants,” he says, “and if you pay attention to the environments around you, you get a sense of who these people are.” He adds, “The character is driven by a search for a sort of home … what I think is a pretty universal and pretty common feeling.”
This reading of The Beautiful Things That Heaven Bears took place in February of 2008 at the Politics and Prose bookstore in Washington, D.C.
Source NPR
Do I have to File a Tax Return?
File your Tax
You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. Check the Individuals section of IRS.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a tax return with the IRS this year.
Even if you don’t have to file, here are eight reasons why you may want to file:
- Federal Income Tax Withheld If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax.
- Making Work Pay Credit You may be able to take this credit if you have earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.
- Government Retiree Credit You may be eligible for this credit if you received a government pension or annuity payment in 2009. However, the amount of this credit reduces any making work pay credit you receive.
- Earned Income Tax Credit You may qualify for EITC if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means you could qualify for a tax refund.
- Additional Child Tax Credit This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.
- Refundable American Opportunity Credit This education tax credit is available for 2009 and 2010. The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.
- First-Time Homebuyer Credit The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. The credit applies to homes bought anytime in 2009 and on or before April 30, 2010. However, you have until on or before June 30, 2010, if you entered into a written binding contract before May 1, 2010. If you bought a home after November 6, 2009, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.
- Health Coverage Tax Credit Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2009 tax return.
For more information about filing requirements and your eligibility to receive tax credits, visit IRS.gov.
Is Bottled Water Better Than Tap?
Americans Are Spending Billions on a Drink That’s Virtually Free
Waste your Money
By JOHN STOSSEL
It started with Perrier. Somehow, a French company convinced people it’s cool to buy bottled water. Today, Evian has surpassed Perrier in sales and now it’s the chic French water of choice. Why? It costs about 5 bucks a gallon! Why do people pay so much for something they can get virtually free?
If they’re not buying Evian, they buy Aquafina and Dasani and the dozens of new brands that are jumping into this billion-dollar business, including bizarre ones like Venus, the Water for Women, and Trump Ice, with “The Donald” scowling on the label. I’d have to be very thirsty to buy that.
Many people say they buy bottled waters because they taste better. We spoke with people in New York City, asking them why they liked bottled better than tap water.
“I drink Dasani. It tastes good, it tastes crisp, like — natural,” one girl said.
“I think tap water kind of tastes like sewer,” said another.
People also say they drink bottled water because they believe it’s safer than tap water.
One man told me he’s the only one “who’s brave enough” to drink tap water at home. His family’s afraid to drink tap water because of germs, he said.
At recent Earth Day celebrations, a lot of people told us they believe tap water is unhealthy. “As a parent I feel more comfortable giving her bottled water,” one father told us.
Bottled water, we were told, is cleaner, safer, healthier.
Watching bottled water ads, you’d think that tap water might not be healthy. But it’s not true.
“20/20″ took five bottles of national brands of bottled water and a sample of tap water from a drinking fountain in the middle of New York City and sent them to microbiologist Aaron Margolin of the University of New Hampshire to test for bacteria that can make you sick, like e. coli.
“There was actually no difference between the New York City tap water and the bottled waters that we evaluated,” he said.
Many scientists have run tests like that and have consistently found that tap water is as good for you as bottled waters that cost 500 times more.
This is the Book worth to read: Beneath the Lion’s gaze
by Euan Kerr, Minnesota Public Radio
Meaza Mengiste
But the experience was so traumatic she has very clear memories of what happened.
“I remembered so vividly my life in Ethiopia, and I remember very specific moments and those stayed with me here,” she said. “And as I grew older I started wanting to put them into context, to try to find a historical and political explanation for what I remembered.”
So she wrote “Beneath the Lion’s Gaze,” a critically-acclaimed novel about a family living through the Ethiopian revolution. The story also tells of the last days of Hailie Selassie before his death in prison.
Maaza Mengiste, who now lives in New York, told Euan Kerr even though many people wanted the Emperor gone, his removal was traumatic.
Broadcast Dates
Why is AIDS education for young people important?
AIDS education for young people plays a vital role in global efforts to end the AIDS epidemic. Despite the fact that HIV transmission can be prevented, each year millions of people become infected with the virus; in 2008 alone, there were 2.7 million new HIV infections. Almost 1-in-6 of these new infections were among people under 15 years old. “In 2008 alone, there were 2.7 million new HIV infections. Almost 1-in-6 of these new infections were among people under 15 years old.” Providing young people with basic AIDS education enables them to protect themselves from becoming infected. Young people are often particularly vulnerable to sexually transmitted HIV, and to HIV infection as a result of drug-use. Acquiring knowledge and skills encourages young people to avoid or reduce behaviours that carry a risk of HIV infection. Even for young people who are not yet engaging in risky behaviours, AIDS education is important for ensuring that they are prepared for situations that will put them at risk as they grow older. AIDS education also helps to reduce stigma and discrimination, by dispelling false information that can lead to fear and blame. This is crucial for prevention, as stigma often makes people reluctant to be tested for HIV. Somebody who is not aware of their HIV infection is more likely to pass the virus on to others. AIDS education can help to prevent this, halting stigma and discrimination before they have an opportunity to grow. In order to prevent becoming infected with HIV, young people need comprehensive information about how HIV is transmitted and what they can do to stop themselves from becoming infected. This information should be delivered without moral judgement.
What is HIV ?
HIV is a virus. Viruses such as HIV cannot grow or reproduce on their own, they need to infect the cells of a living organism in order to replicate (make new copies of themselves). The human immune system usually finds and kills viruses fairly quickly, but HIV attacks the immune system itself – the very thing that would normally get rid of a virus.
With around 2.7 million people becoming infected with HIV in 2008, there are now an estimated 33 million people around the world who are living with HIV, including millions who have developed AIDS.
Source: http://www.avert.org
2009-2010 STUDENT ESSAY CONTEST
The Federal Reserve Bank of Minneapolis announces the 22nd Annual Student Essay Contest open to all high school juniors and seniors in the Ninth Federal Reserve District.
What economic factors may be contributing to the problem of obesity, and how can economics be applied to address the problem?
For almost all of the human past, the prospect of starvation was a real threat to most people. While scarcity is still the pervasive fact of economics, modern industrial economies have an abundance of low-cost food. As a result, the United States and other countries have seen an increase in rates of obesity.
Obesity is a medical condition in which excess body fat becomes a health threat. This can have such adverse consequences as higher rates of heart disease, diabetes, cancer and stroke. In addition, some claim that increasing obesity rates inflict costs on the rest of society as well. For this reason, there might be a case for public action to reduce obesity.
The Minneapolis Fed has decided for its 22nd Annual Student Essay Contest to ask the question, “What economic factors may be contributing to the problem of obesity, and how can economics be applied to address the problem?”
Essays can explore why obesity has increased, and what sorts of policies (if any) can combat this increase. What follows is a summary of some, but not all, economic aspects of obesity. Read more
If you have any questions, contact Joe Mahon at Joseph.Mahon@mpls.frb.org or call 612-204-5254.
Writing Guide
- Topic Primer
- Bibliography
- Economic Principles To Keep in Mind
- Tips on Writing a Winning Essay
- Eligibility Requirements
- Contest Regulations
- Essay Judging
- Student Entry Form
- Two Divisions: Standard and Advanced Economics
Rules
Awards
Fifteen students in each division will receive a $100 U.S. savings bond. In addition, a first- and second-place winner will be selected from each division. The two second-place winners will each receive an additional $200 savings bond, and the two first-place winners will each receive an additional $400 savings bond. One first-place winner will be selected as the overall winner of a paid summer internship at the Minneapolis Fed. The winning essay will also be published in The Region magazine.
Contest Timetable |
||
| Student essays due | March 26, 2010 | |
| Finalists announced | April 16, 2010 | |
| Student Workshop and Awards Program, Minneapolis, Minn. | April 30, 2010 |
Essay Contest Archive
Source:
http://www.minneapolisfed.org/
How to Obtain a Transcript of Your Past Tax Information
- Taxpayers who need their past tax return information can obtain it from the IRS. Here are nine things to know if you need copies of your federal tax return information.
- There are two easy and convenient options for obtaining free copies of your federal tax return information — tax return transcripts and tax account transcripts.
- The IRS does not charge a fee for transcripts, which are available for the current year as well as the past three years.
- A tax return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules. It does not reflect any changes you, your representative or the IRS made after the return was filed. In many cases, a return transcript will meet the requirements of lending institutions, such as those offering mortgages and student loans.
- A tax account transcript shows any later adjustments either you or the IRS made after the tax return was filed. This transcript shows basic data – including marital status, type of return filed, adjusted gross income and taxable income.
- To request either transcript by phone, call 800-829-1040 and follow the prompts in the recorded message.
- To request a tax return transcript through the mail, individual taxpayers should complete IRS Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Form 4506T-EZ is only for individuals who filed a Form 1040 series return. Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use the Form 4506T, Request for Transcript of Tax Return.
- You should receive your tax return transcript within 10 working days from the time the IRS receives your request. Allow 30 calendar days for delivery of a tax account transcript.
- If you still need an actual copy of a previously processed tax return, it will cost $57 per tax year and take much longer. Complete Form 4506, Request for Copy of Tax Form, and mail it to the IRS address listed on the form for your area. Please allow 60 days for actual copies of your return. Copies are generally available for the current year as well as the past six years.
Visit the IRS Web site, IRS.gov, to determine which form will meet your needs. Forms 4506, 4506T and 4506T-EZ can be found at IRS.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).
Links:
Form 4506-T, Request for Transcript of Tax Return (PDF 45.3K)
Form 4506, Request for Copy of Tax Form (PDF 42.3K)
Tax Credit Helps Pay for Higher Education Expenses
The American Recovery and Reinvestment Act was passed in early 2009 and created the American Opportunity Credit. This educational tax credit – which expanded the existing Hope credit – helps parents and students pay for college and college-related expenses.
- Here are the top nine things the Internal Revenue Service wants you to know about this valuable credit and how you can benefit from it when you file your 2009 taxes.
- The credit can be claimed for tuition and certain fees paid for higher education in 2009 and 2010.
- The American Opportunity Credit can be claimed for expenses paid for any of the first four years of post-secondary education.
- The credit is worth up to $2,500 and is based on a percentage of the cost of qualified tuition and related expenses paid during the taxable year for each eligible student. This is a $700 increase from the Hope Credit.
- The term “qualified tuition and related expenses” has been expanded to include expenditures for required course materials. For this purpose, the term “course materials” means books, supplies and equipment required for a course of study.
- Taxpayers will receive a tax credit based on 100 percent of the first $2,000 of tuition, fees and course materials paid during the taxable year, plus 25 percent of the next $2,000 of tuition, fees and course materials paid during the taxable year.
- Forty percent of the credit is refundable, so even those who owe no tax can get up to $1,000 of the credit for each eligible student as cash back.
- To be eligible for the full credit, your modified adjusted gross income must be $80,000 or less — $160,000 or less for joint filers.
- The credit begins to decrease for individuals with incomes above $80,000 or $160,000 for joint filers and is not available for individuals who make more than $90,000 or $180,000 for joint filers.
- The credit is claimed using Form 8863, Education Credits, (American Opportunity, Hope, and Lifetime Learning Credits), and is attached to Form 1040 or 1040A.
For more information about the American Opportunity Tax Credit visit the IRS Web site at IRS.gov/recovery.
Credit Union … Bank … What’s the Difference?
More than 89 million Americans love their credit unions, and they are more satisfied with their service than those who are customers of banks. Credit unions have been a consumer favorite for service and customer satisfaction in the independent American Banker/Gallup poll every year since it began in 1983.
How do credit unions garner the top spot every year? Well, they’re different from banks. In honor of International Credit Union Day, observed the third Thursday of every October, here are the top 10 reasons why belonging to a credit union rocks.
No. 1: You belong
At a bank, you are a customer. At the credit union, you are a member, and you belong.
Members can be connected through a place of work, worship, residence, or through family. A field of membership determines who can join each credit union. However your credit union is structured, all members have some kind of shared connection with each other just by belonging.
No. 2: The credit union works for you
As a credit union member, you don’t just belong, you own part of your credit union. And you don’t have to sit in a stuffy board room every day.
The credit union employees work for you—to ensure you’re satisfied. Their primary goal is to make sure all your needs are met, and they actually enjoy what they do. Employees get more satisfaction out of their work when members are happy with their service.
No. 3: You pay lower interest on loans and earn higher dividends on deposits
Banks consistently are among the most profitable companies in the world. They are in business to make money for their shareholders. Whereas credit unions are not-for-profit organizations and any profits are returned to you in the form of lower fees, higher dividends, and improved service. Credit unions typically charge fewer and lower fees than other financial institutions, according to the Credit Union National Association’s (CUNA) latest fee report. CUNA is the trade association for credit unions nationwide. Overall, credit unions have better loan rates, too.
No. 4: People, not profits, are the No. 1 priority
A bank’s top priority is making profits for stockholders. That usually doesn’t bode well for your banking experience—or your wallet. Members—not money—are the credit union’s most valuable asset. At the credit union, you’re much more than just an account number. You are a member—and an owner. Credit union employees know their members and often greet them by name. That’s a huge difference from megabanks, where you literally are only one of a million customers.
No. 5: Your money is protected at the credit union
You’ve heard of the FDIC, which insures accounts at banks up to $100,000. The National Credit Union Share Insurance Fund (NCUSIF) insures federal and many state credit union accounts up to $100,000. Retirement accounts are backed up to $250,000. If a credit union is not backed by the NCUSIF, it often is insured by a private insurer. Contact someone at your credit union to find out what kind of account insurance it offers.
Credit unions are regulated by the National Credit Union Association (NCUA), an independent agency of the federal government. The NCUA supervises and charters federal credit unions. State-chartered credit unions are regulated by a state regulator.
No. 6: Credit unions can help you make better financial choices
Whether it’s buying a car or home, building an emergency fund, or planning retirement, you can turn to the credit union for the facts to make wise choices.
Part of the credit union philosophy is ensuring that members understand financial options. To that end, credit unions offer seminars, newsletters, and print and online financial resources (such as Home & Family Finance Resource Center®, which you’re reading now) to help members gain a deeper understanding of financial matters.
Unlike financial predators who try to dupe consumers into thinking there’s only one choice, credit unions show members the gamut of choices available for a financial service. The people at your credit union can help members learn the skills to make informed decisions among these options.
No. 7: Credit unions are for everyone, including the Little Guy
Credit unions were founded on the idea of members pooling their money and lending to each other. Credit unions are for all people, especially those who traditionally have been underserved. The Federal Credit Union Act of 1934 states that credit unions were established, “to make [credit] more available to people of small means…” Today, credit unions still follow that idea, serving everyone—from the elderly on small, fixed-incomes to single mothers to well-to-do families. At the credit union, everyone is welcome.
No. 8: Convenience
Credit unions are located in most communities—including regions that other financial institutions choose not to serve. They offer many or all of the same services banks do, but credit unions focus their attention on individual consumers.
Although your credit union may be only one branch, credit unions have formed alliances to offer you more convenience in a cost-effective way. For example, there are credit union co-op networks of ATMs across the country that charge low or no fees. Each credit union has its own system, so ask the professionals at your credit union where you can use your ATM card for free.
Many credit unions also offer online banking and bill pay, so you can conduct your financial transactions wherever you have access to a computer, at home or halfway around the world. It doesn’t get more convenient than that.
No. 9: We listen to you
As democratically controlled institutions, credit unions give you the opportunity to make suggestions and vote for the board of directors and for other policies that can improve your credit union experience. If you want to, you even can run for a position on the board of directors. But you don’t have to be a credit union big-wig to be heard. No matter how large (or little) your account balance is, you have one vote, which means it’s not those who have the most money who are running the show.
No. 10: Your credit union is a part of your community
Credit unions take an active interest in local affairs. Whether it’s sponsoring local community events, working to educate all consumers about better ways to manage money, or offering discounted tickets to local sporting events, credit unions strive to make a positive difference in their communities. Credit unions also work for the sustainable development of communities.
As a credit union member, you could probably add a few more reasons of your own to this list. We’ll leave it at 10 and wish you a happy International Credit Union Day using this year’s theme: “Together We’re Better.”
