1

A New China-Taiwan Agreement Protects Investors

China and Taiwan may disagree on political issues. But on Thursday they reached an agreement to
protect investors. The agreement is important because China and Taiwan do not have diplomatic
relations. China claims Taiwan as its territory. But Taiwan has been self-governing since 1949. The
sides agreed to open new areas to investment and to inform the other within 24 hours if an
investor is arrested. Talks on the deal have lasted two years. But they have been slowed because
of the different legal systems in the two areas. The Chinese and Taiwanese negotiators signed the
agreements in Taipei. They set up a way to negotiate, an arbitration mechanism. The deal also will
open new areas of business and industry to investment. Chinese interests had held back
investment because of fears of a change in Taiwan's government. Market experts expect Chinese
investors to buy shares of Taiwanese companies listed on Taiwan's stock exchange. Experts think
high-technology and travel industries will receive a lot of investment over the short term.
Taiwanese share prices are considered undervalued although companies are doing well. Jack
Huang is a lawyer in Taipei. He says China will buy stocks and seek partnerships with Taiwanese
companies, especially in technology. Jack Huang says a lot of investment will come from Chinese
companies or the Chinese government wealth fund. He says Taiwan's companies are mainly
financially sound but stock prices are not too high. "Taiwan stocks," he says, "are
undervalued."Taiwan's economy is over $430 billion. Taiwan permits Chinese investors to buy
directly into Taiwanese companies in 247 industries. They can also buy up to a 10 percent share in
most companies.Experts in Taiwan say China wants to invest in the island to support efforts at
political reunification. The Nationalist Party, or KMT, of the former leader of China Chiang Kai-shek
went to Taiwan at the end of the country's civil war in the 1940s. Today, Taiwan has several
political parties. The main opposition party held power for eight years starting in 2000. President
Ma Ying-jeou of the KMT has sought closer economic ties with the mainland. In 2010, China
invested $1 billion in Taiwan after a deal that year reduced export taxes for both sides. Transcripts,
MP3s and PDFs of our reports are online at voaspecialenglish.com. For VOA Special English, I'm
Alex.

2

Avoiding the 'Fiscal Cliff'
Congressional leaders and the Obama administration began budget negotiations soon after the
presidential election. They are trying to avoid what is being called "the fiscal cliff," which is a
combination of tax increases and budget cuts that could harm the economy. However, a group of
wealthy Americans has formed to try to influence those talks. More than 20 members travelled to
Washington recently to call on lawmakers to raise taxes on the richest Americans.The group calls
itself "Patriotic Millionaires." Members have incomes of at least $1 million a year. Their message is
simple: "Tax us more. We can take it." They are worried about the growing gap between rich and
middle-class Americans.The group supports President Obama's plan to raise taxes on high-income
earners as part of a budget agreement to avoid the "fiscal cliff." If an agreement is not reached by
the end of this year, taxes will go up for most Americans, and federal spending will go down
sharply. The Patriotic Millionaires believe their taxes need to be raised. They also do not agree
with the idea that increasing taxes on those who create jobs means fewer jobs will be created. T.J.
Zlotnitsky is the head of iControl Systems, a data management company. He is also a member of
the group. He says his personal tax rate is not an issue when he decides on hiring workers. The
group opposes raising taxes on the middle-class, but not high-earners, noting it would be bad for
the economy.Patriotic Millionaires has more than 200 members across the country. They work in
finance, entertainment, technology and other areas. For VOA Learning English, I'm Alex Villarreal.

3

Business English Speakers Can Still Be Divided by a Common
Business is the most popular subject for international students in the United States. At last count,
twenty-one percent of foreign students at American colleges and universities were studying
business and management. The Institute of International Education in New York says engineering
is the second most popular field, in case you were wondering.Thomas Cosse is a professor of
marketing and business at the University of Richmond in Virginia. He says international students
who want to study business need to have good English skills -- and not just to study at his
school.But the world has more non-native speakers of English than native speakers. As a result,
Americans working with foreign companies may need to learn some new English skills themselves.
At the University of Richmond, teams of graduate students work with companies seeking to enter
the American market. The students learn about writing market entry studies. The reports are
written in English. But Professor Cosse tells his students to consider who will read them.He said his
students have to write the report so that it can be understood by someone who is an English
speaker but not a native English speaker. For example, he tells his students to avoid jargon and
other specialized terms that people might not know in their own language. This can be good
advice even when writing for other native speakers. But effective communication involves more
than just words. Kay Westerfield is director of the international business communication program
at the University of Oregon. She says you must have the language skills as well as cultural
intelligence. Cultural intelligence means the need to consider local behaviors in everything from
simple handshakes to speaking to large groups. Still, Kay Westerfield says the ability of foreign
workers to speak English is becoming more important to companies looking to move operations to
other countries. Or, as she puts it, to "off-source." Also, she says English skills often provide a
competitive edge for business students when they seek jobs. She said: "As one business student in
West Africa put it, 'English is a lifeline.'"For VOA Special English I'm Alex Villarreal. You can read
and listen to our programs and find activities for English learners at voaspecialenglish.com. We're
also on Facebook and Twitter at VOA Learning English.

4

China Increases Food Imports
From VOA Learning English, this is the Economics Report. A new report says Chinas demand for
food imports will sharply rise in the next 10 years. The United Nations Food and Agriculture
Organization and the Organization for Economic Cooperation and Development made the
prediction. They say China will increase its imports of grains, oil seeds and meat. Angel Gurria is
secretary-general of the OECD. He says Chinas need for food is growing at a time when world food
production is decreasing. Imports to China are expected to grow at a yearly rate of three percent
to 1.7 million tons by the year 2022. Chinas imports of crops used to feed animals, called coarse
grains, are expected to double by 2022. And imports of oil seeds are predicted to rise 41 percent.
Angel Gurria says Chinas economic growth is fueling its hunger for imports. He says the country
already has a big effect on world food markets. Jose Graziano Da Silva is the head of the Food and
Agriculture Organization. He says reducing the large amount of food that is now wasted would
help meet the growing demand for food. The rise in the Chinese demand for food is expected to
cause grain and other commodity prices to rise. Businesses are taking new steps because of
Chinas influence on world food trade. Last month, the Chinese meat processing company
Shuanghui announced a $7 billion offer for the American pork company Smithfield Foods. China is
already the worlds biggest importer of milk and soybeans. It is expected to become the worlds
biggest consumer of pork, passing the European Union within 10 years. The FAO and OECD say
that will cause international pork prices to rise. For VOA Learning English, Im Alex Villarreal.

5

Chinas Air Pollution
From VOA Learning English, welcome to the Economics Report in Special English. China has been
struggling to deal with record levels of smog over Beijing. Recently, officials in several Chinese
cities announced plans to trade carbon credits as a way to reduce air pollution. For many years,
China considered economic growth more important than the environment. The nation remains
hungry for energy. But it has also become the worlds biggest producer of carbon gasses. Beijings
smoggy days have made international news. Small particles in the air reduce visibility and threaten
public health. Smog has been a concern in the city for years. But a sharp rise in pollution levels in
January led to sharp criticism from many Chinese. Pollution from coal-burning power centers and
factories is a big part of the problem. Now, officials hope to control industrial air pollution by
creating systems to trade carbon credits. The trading systems, or platforms, would enable
companies to receive credits for lowering greenhouse gas emissions. The credits can then be
traded. The goal of these market-based platforms is to get businesses to invest in clean
technology. Markets for carbon credits are expected to open this year in seven cities, including
Beijing, Shanghai and Tianjin. Officials say the government has decided to start with pilot
programs because carbon trading is something new. China wants to launch a national carbon
trading program by 2016. Still, public pressure continues building on the government to find an
answer to thick air pollution. Wu Changhua is with The Climate Group. She says the Chinese
people are looking at more than jobs. They want a better environment too. For VOA Learning
English, Im Alex Villarreal. (Adapted from a radio program originally broadcast 8Feb2013)

6

Chinese Exports to North Korea Fell During First Half of 2013
Recent Chinese trade information shows that China's exports to North Korea decreased by more
than 13 percent during the first six months of 2013. This is the first time in 4 years that exports
have fallen. Exports decreased by about $1.6 billion from January to June compared to the same
period last year. The last time exports from China to North Korea dropped was in 2009 during the
world financial crisis. This year, there was a large decrease in shipments of unprocessed oil to
North Korea. Lu Chao studies at the Liaoning Academy of Social Sciences. He says China is the
biggest oil provider to North Korea. He said last year, China exported 500,000 tons of oil to the
country. Mr. Lu says China placed trade restrictions on North Korea this year after its third nuclear
test. He says the Chinese government made the decision based on a United Nations Security
Council resolution. North Korea's decision to carry out its third nuclear test earlier this year has
affected ties between the two countries. Following the test, Chinese students called on the
government to completely cut ties with North Korea. Chinese officials have condemned the test.
They have called for the continuation of six-nation talks aimed at ending the country's nuclear
weapons programs. In May, the government operated People's Bank of China announced it was no
longer doing business with North Korea's foreign trade bank. Recently officials from the United
States and South Korea met. They announced their plan to continue placing restrictions on North
Korea and to seek more assistance from China in the process. For VOA Learning English, I'm Alex
Villarreal.

7

Detroit Files for Bankruptcy
Detroit Mayor Dave Bing had to report some bad news recently. He said Detroit was seeking
bankruptcy protection. The move would give the city court protection from creditors. The decision
to declare bankruptcy is an effort to restructure and reduce debt. It comes at a difficult time for
Detroit. In March, Michigan Governor Rick Snyder named Kevyn Orr, a bankruptcy expert, to
oversee the city's financial problems. Detroit has been struggling to reduce a budget deficit of
more than $300 million. In addition, the city's long-term debt has increased to at least $18 billion.
Detroit's problems have grown over many years. Michigan State University professor Eric Scorsone
says the city depended too much on one industry: automobile manufacturing. Jobs with car
makers were a big reason why Detroit was one of the country's largest cities half a century ago. In
the 1950s, it had a population of about 1.8 million people. Today the number is down to less than
800,000. Robin Boyle is a professor of urban planning at Wayne State University. He says, over the
years, many Detroit residents moved to areas outside the city or even left the state. That hurt
Detroit's ability to invest in itself. It is rare for a large American city of seek bankruptcy protection.
In 1975, New York City came close before the federal government agreed to provide money.
Detroit, however, is the largest city to seek bankruptcy.
Now, a federal judge is to consider Detroit's request. One of the main issues is what to do about
the retirement pay of city workers. Currently, there are many more retired workers than those
paying into the pension system. For VOA Learning English, I'm Alex Villarreal.

8

Facebook Stock Goes on Sale
Facebook is the world's biggest social network. It has over nine hundred million users worldwide.
And it reported $3.7 billion in sales for last year. The company has been privately held since two
thousand four. That was when Mark Zuckerberg and several classmates at Harvard University
started Facebook as a business. But on May eighteenth, Facebook becomes a publicly traded
company. That means its shares will be listed on the NASDAQ stock market, and sold to the public.
Interest in the stock kept building after Facebook announced details of its initial public offering, or
IPO, earlier this year. The IPO will make billionaires of the company's founders, including Mr.
Zuckerberg. Eduardo Saverin, a Brazilian-born co-founder, has been strongly criticized for recently
giving up his United States citizenship. By doing so he will avoid a fifteen percent tax on the value
of his shares. He now lives in Singapore.Shortly before the trading started, Facebook told the
Securities and Exchange Commission that it wanted to increase the number of shares being
offered to over four hundred twenty million. The company had earlier said it planned to offer
three hundred thirty-seven million. The starting price was set at thirty-eight dollars, also an
increase. Some financial experts say Facebook could raise sixteen billion dollars, making it one of
the biggest IPOs ever.Most of Facebook's revenue comes from online advertising. But the
company also says it expects to earn money from fees charged on the sales of virtual goods. These
are digital products used in social games, not physical goods. Facebook says it sees important
income coming from this new market, which could reach fourteen billion dollars by twenty
sixteen.Not everyone is pleased. General Motors ended its advertising agreement with Facebook
just before the stock began trading. The carmaker said it did not see results from the millions of
dollars it spent on advertising with Facebook.And Facebook has been criticized for some recent
business decisions. It offered one billion dollars to buy Instagram, an application for sharing
photographs. The deal requires government approval and has yet to be finalized. So is Facebook
worth the price of the stock? That will be for investors to decide.For VOA Special English, I'm Alex
Villarreal. You can read, listen and learn English with more business stories at
voaspecialenglish.com. (Adapted from a radio program broadcast 18May2012)

9

Future Uncertain for African Growth and Opportunity Act
The United States is considering the future of an American law called the African Growth and
Opportunity Act, or AGOA. This law allows countries in sub-Saharan Africa to export some goods
and natural resources to the United States without duties.AGOA is set to end in 2015. It was
signed into law in 2000 and has been extended once already. Earlier this month, American Trade
Representative Michael Froman met with African ministers in Ethiopia for talks on the possible
renewal of AGOA. He said the United States is interested in African trade talks with the European
Union. He said American officials want to know about the results of those talks before they decide
what to do about extending the law. Mr. Froman said African partner countries need to think
about how they want to work with the United States on renewing it. He said the countries need to
understand how this issue relates to their negotiations with the European Union. EU economic
partnership agreements with African countries would be different from AGOA. Not only would
African products be duty-free in Europe. European goods sent to African markets would not be
subject to import taxes either. Mr. Froman said the wording of AGOA might need to be changed so
the law is more like the EU partnership agreements. He said the United States is unlikely to
support calls for giving African partners one-way access to the American market while limiting
trade for American companies. In the end, the United States Congress will decide whether or not
to approve an extension of the law, and for how long. For VOA Learning English, I'm Alex Villarreal.

10

Getting Young Indians to Choose Tea Over Coffee
India is traditionally a tea-drinking country. But Indians are gaining a new taste for coffee. This has
led international coffee companies to consider moving into the market. At the same time, local
business people are looking for new ways to profit from the country's tea-drinking tradition. They
are opening new places that offer tea. Coffee shops have spread from major cities like New Delhi
and Mumbai to smaller towns. In the past ten years, cafes have become increasingly popular.
India's huge population of young people has quickly taken to the coffee culture. Indians now drink
twice as much coffee as they did ten years ago. The success of the coffee market has gained the
attention of foreign companies like Starbucks. The American-based company will open its first
store in India later this year. Other companies like Lavazza and Costa Coffee are already there. The
head of the India Coffee Trust, Anil Kumar Bhandari, praises Starbucks's decision. He says cafes in
India have become central to the lifestyle of the young middle-class. He says coffee companies like
Starbucks "should have been here before ... Almost any cafe chain which has a reasonable quality
with its service, ambiance and food -- and coffee first -- will succeed in this country." Look at the
young population, he says, "they are all taking to it like ducks to water." India has over a billion
people. Business experts point out that half of them are under the age of twenty-five. Yet even
with the growth in coffee drinking, Indians still drink eight times more tea. They have been
drinking tea for more than one hundred fifty years. India is also one of the world's biggest
producers of tea, or chai, as people call it locally. Indians usually drink tea at home or in offices or
buy it mostly from street sellers. But some business people hope to change that. Amuleek Singh
Bijral is thirty-six years old and a graduate of Harvard University in the United States. He opened a
place called Chai Point in Bangalore, the center of India's information technology industry. In less
than a year thirteen more Chai Point locations have opened in the city. One tea drinker in
Bangalore welcomes the new outlets: "Out-of-home options like this are new, especially since
coffee-drinking has boomed in the last couple of years. This is a little different." For VOA Special
English, I'm Alex Villarreal. (Adapted from a radio program broadcast 17Feb2012)

11

Greece's Debt Crisis and the Future of Europe
Finance ministers from the euro area met in Poland in the middle of September to discuss
the Greek debt crisis. American Treasury Secretary Tim Geithner joined them. Fabian
Zuleeg, chief economist at the European Policy Center in Brussels, said the United States
was right to get involved. The intervention from the US has also shown at least a risk that
the stability of the financial system as a whole the global financial system might be
under threat again. Earlier, the leaders of France, Germany and Greece held a
conference call to discuss how to contain Europes deepening financial crisis. Germany
and France are Europes two largest economies. Seventeen European Union countries
use the euro as their currency. On September fifteenth, five major central banks agreed to
lend additional dollars to European banks in the euro zone. The European Central Bank
says the three-month loans will provide as many dollars as the banks need. The
operations will end in December. The European Central Bank is acting with the United
States Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National
Bank. The announcement helped lift European bank shares and major European stock
lists.The Paris-based Organization for Economic Cooperation and Development has
lowered its growth estimates for the euro area. In Greece the economy has shrunk this
year. German Chancellor Angela Merkel urged eurozone nations to do everything possible
to avoid an uncontrolled insolvency by Greece. On September thirteenth, she warned
that problems would quickly spread if Greece failed to pay its international rescue loans.
And, she said, If the euro fails, Europe fails.The next day, European Commission
President Jose Manuel Barroso spoke to the European Parliament. He announced that the
commission would propose creating eurobonds. The idea is for euro zone governments
to jointly guarantee their debts. Germany and France have opposed such bonds. Mr.
Barroso also said the current system that lets individual countries easily block policy is not
working. I am convinced we need a deeper and more results-driven integration. A
system based purely on intergovernment cooperation has not worked in the past and will
not work in the future. For VOA Special English, Im Alex Villarreal.

12

How Stress Affects Mental Bandwidth
New research shows how a lack of money, food or even time can affect decision making and the
ability to act. In the book, "Scarcity: Why Having Too Little Means So Much," Professors Sendhil
Mullainathan and Eldar Shafir examine the mental stress of dealing with a lack of something
necessary. Sendhil Mullainathan is an economist. He teaches at Harvard University in
Massachusetts. Eldar Shafir teaches psychology at Princeton University in New Jersey. Their
research combined theories from economics and psychology to explain behaviors. The two
borrowed a word from digital technology to describe how thinking is harmed by scarcity. They use
the word, "bandwidth" to describe the ability of the mind to remember and plan. They say mental
bandwidth decreases when people have too little. When mental energy is divided between worry
and planning, planning is affected. One experiment in India tested the intelligence of farmers
before and after the yearly harvest. Farmers scored higher after they had sold their crops. Worry
over the lack of money before the harvest had temporarily decreased their intelligence. The two
men experienced their own decreased bandwidth. They found that a lack of enough time affected
their performance in all parts of their lives. Sendil Mullainathan was chosen for a MacArthur
Genius Award, yet he says he found himself missing meetings, not answering e-mails and
forgetting to call his mother. Eldar Shafir says the research is meaningful for public policy. He says
the condition of being poor or hungry or even too busy restricts the ability to think and act to
make things better. For VOA Learning English, I'm Alex Villarreal.

13

Italy Moves to Satisfy Creditors
The economic situation in Italy is worrying investors and may have cost its prime minister his job.
Like Greece, Italy is facing pressure to make unpopular cuts in government spending. Silvio
Berlusconi sought to enact measures meant to satisfy his countrys creditors. On early November
eighth, Mr. Berlusconi won a budget vote in Italys lower house of parliament. But the prime
minister lost something else. A majority of lawmakers in the lower house refused to vote. It
appeared Mr. Berlusconi had lost their support. He announced that he would resign after
parliament passed budget cutting measures. Italian government debt is about one hundred twenty
percent the size of the countrys economy. That is second only to Greece in Europe. Greece,
Ireland and Portugal have all required rescue loans to help them pay creditors. But unlike those
nations, Italy has the third largest economy using the euro. And it is among the ten largest
economies in the world. On November seventh, European finance ministers met in Brussels to
discuss the deepening debt crisis among nations using the euro. European Union Economic and
Monetary Affairs Commissioner Olli Rehn said Italy needed to enact reforms. [It is] essential now
that Italy will stick to its fiscal targets, ensure their implementation and intensify the structural
reforms that can boost growth and job creation. Italy recently faced an increase in borrowing
costs that topped seven percent. Unlike Greece, Italys budget deficit is not out of control. Of
greatest concern, however, is Italys lack of growth and job creation.Financial officials and market
watchers are also concerned that Italys debt problems may be too big to solve for the seventeen
nations using the euro. European leaders have yet to agree on the size and conditions of a rescue
fund, or plan.In Brussels, Dutch Finance Minister Jan Kees de Jager said the rescue fund needed to
be bigger. But he said budget reform of euro nations was important, too. We have to increase the
capacity of the emergency fund, thats very important, but its not the only thing. Economic
reforms and budget cuts in countries currently under attack of the financial markets are at least as
important than more money in the emergency fund. For VOA Special English, Im Alex Villarreal.
Special English is VOAs daily source of news and information for people learning English. Go to
voaspecialenglish.com for transcripts and MP3s of our stories and for the Classroom, our e-
learning platform.

14

Limits on Rare Earth Exports Get China in Trade Dispute
The United States, the European Union and Japan have called for talks with China under the
dispute settlement system of the World Trade Organization. They want to discuss Chinas export
limits on rare earth metals and two other minerals. WTO rules give talks sixty days to work. If they
do not settle the dispute, a WTO panel can then be requested to help reach a settlement.Rare
earth metals are used in the manufacture of almost every high-technology device from mobile
phones and computers to batteries for electric cars. And demand is only growing.China says it
follows WTO rules in exporting the minerals. In twenty ten, China mined about one hundred thirty
thousand metric tons of rare earth metals. That was about ninety-seven percent of world
production. But information from Chinas government and the United States Geological Survey
shows that China has reduced its export limits sharply in the past two years. Critics say this unfairly
helps Chinese companies in the production of high-technology products. And, they say, it is a
violation of World Trade Organization rules. President Obama explained why the United States
was involved in the case. He said American manufacturers use rare earth materials to make high-
tech products like advanced batteries. We want our companies building those products right here
in America, he said. To do that they need access to materials that China supplies. In the
presidents words, If China would simply let the market work on its own, wed have no
objections. But he said Chinese policies go against the very rules that China agreed to follow.
China says it has restricted rare earth exports to meet needs at home. And it says its policy helps
limit the environmental damage caused by over-mining. China now faces a slowing economy. In
February, the nation had its biggest trade deficit in ten years. Experts expect Chinas central bank
to increase the money supply to aid economic growth. At the same time, inflation remains a
threat. On March fourteenth, Premier Wen Jiabao discussed the need for reform. China, in his
words, must continue to strike a balance between maintaining steady and robust economic
development, making economic structural adjustments and managing inflationary expectations.
For VOA Special English, Im Alex Villarreal. Get more business news and learn English at
voaspecialenglish.com

15

Meeting Highlights Economic 'Dynamism' of Southeast Asia
The World Economic Forum is an independent organization. Its job is to help businesses,
governments and civil society groups find ways to work together to improve the world. The
twenty-first World Economic Forum on East Asia recently took place in Thailand. Organizers
wanted to bring attention to development in Southeast Asia. The event received extra attention
because of the presence of Nobel Peace Prize winner Aung San Suu Kyi, the Burmese opposition
leader and a newly elected member of parliament. She traveled to Bangkok in her first foreign trip
in over twenty years. Burmese President Thein Sein cancelled his appearance at the meeting
shortly after her travel plans were announced. Klaus Schwab started what came to be called the
World Economic Forum and serves as its executive chairman. In opening comments, he praised
the growing influence of Southeast Asian nations in the world economy and in political issues. In
his words, "When you look at the ASEAN region, you feel that here you have a region which is full
of dynamism." He said the region "becomes more and more a crucial factor in the world economic
and world political context." Several government leaders were in Bangkok for the meeting. They
included the president of Indonesia, the prime minister of Vietnam and the prime minister of
Thailand. The forum is a place to discuss issues affecting the ten members of ASEAN, the
Association of Southeast Asian Nations. In a speech, Thai Prime Minister Yingluck Shinawatra
noted threats like the debt crisis in Europe and climate change. But she also pointed to
technological progress, democratic reforms and new centers of economic growth as signs of hope.
ASEAN nations are becoming increasingly important in the world economy. As a group, their
economic activity is nearing two trillion dollars. Southeast Asian economies are expected to grow
more than five percent this year. That rate is higher than Europe or North America.World Trade
Organization Director-General Pascal Lamy also attended the meetings. He said Southeast Asia is
doing better than other areas now, but he warned that a slowing world economy could create
problems. He said he would expect the region to be more affected in the two or three years to
come than it has been so far. For VOA Special English, I'm Alex Villarreal. (Adapted from a radio
program broadcast 01Jun2012)


16

Obama Makes His Case for Jobs Plan
President Obama has been seeking support for his four-hundred-forty-seven-billion-dollar jobs
plan. The American Jobs Act calls for cutting wage taxes on most businesses. It seeks to prevent
public employees like teachers, police and firefighters from losing their jobs to budget-cutting
measures. And it calls for more federal spending on roads and transportation infrastructure to
help create jobs.In October the Senate blocked a vote on the full bill. President Obama said he
would seek votes on different parts of his jobs plan. Mr. Obama and his wife, Michelle, traveled to
North Carolina and Virginia as part of efforts to seek support for his jobs plan.The Republican
majority leader in the House of Representatives said some parts of the bill are like those in a plan
put forward by the Republicans. Eric Cantor urged President Obama to find common ground with
House Republicans. We want the president to work with us. We want him to stop campaigning.
Lets go find the things that are in common between this plan and his.Republicans in Congress
offered their own plans to improve job growth earlier in the year. They have called for cutting tax
rates and limiting government rules on businesses.Also in October, Congress passed free trade
deals with South Korea, Colombia and Panama, and the president signed them into law. Both Mr.
Obama and congressional Republicans agree the deals should create jobs at home and open
markets to American exports. United States trade officials say every additional billion dollars in
new exports supports six thousand additional jobs. Last year, exports to South Korea alone stood
at about thirty-nine billion dollars. But the president says a lack of jobs continues to hurt economic
growth. The unemployment rate held at 9.1 percent in September. The economy added over one
hundred thousand jobs during the month. But economists say that is not enough to markedly
bring down jobless rate.For VOA Special English, Im Alex Villarreal. Our programs are a way for
people to read, listen and learn American English and much more. You can download transcripts
and MP3s of our stories at voaspecialenglish.com. You can also join us on Facebook and Twitter at
VOA Learning English.

17

'Passive' Homes Save Energy, Money
Heating and cooling equipment are the biggest users of energy in American homes. And homes
are responsible for about one fourth of the nation's total energy use. But there are surprisingly
simple ways to deeply cut energy use, its effect on the environment and its cost. David Peabody
and his team at Peabody Architects design passive homes. He says the design of a passive house
aims to reduce energy demand to its lowest possible level. Passive houses use no solar,
geothermal or wind energy equipment. But they are extremely energy efficient.Mr. Peabody says
passive houses cut heating and cooling costs by about ninety percent. But what sets his design
apart from other "green homes" is that it looks like any other home."That is the beauty of the
passive house approach is that you don't have to build in a particular way with any particular
materials or to any particular style. That's why in our case we decided to try to do something to
prove that point to make something that was very traditionally American."Peabody Architects says
it is building the first passive home in the Washington, DC, area. In Arlington, Virginia, Roger Lin
and his brother Eric are also building one. Roger Lin of Southern Exposure Homes explains that
windows are sealed against leaks and have three layers of glass. The windows are airtight. On a
cold winter day, the temperature inside the unfinished home is a comfortable twelve degrees
Celsius. David Peabody says you can find passive homes all over the world. "North Africa, for
example, has a passive house community designing for very hot dry climates and that's a whole
other area of exploration for passive house."The first passive design was an apartment building in
Darmstadt, Germany. Two physicists helped develop it about twenty years ago. Passive houses use
some specialized materials. These include precast concrete panels and insulation. They also need
to have special air treatment systems. Supporters say they cost only about five or eight percent
more than traditional homes. But they use ten percent of the energy for heating and cooling. The
designs are passive because they do not use geothermal, sun or wind energy for power. But
Passive House Institute US says even greater savings can be reached with additions like solar water
heating systems. They might call that an active passive house. For VOA Special English, I'm Alex
Villarreal. (Adapted from a radio program broadcast 13Jan2012)

18

Pressure in Europe Builds for Banking Reform
Pressure for financial reform has been building in Europe. In June, the financial services company
Moody's Investors Service reduced Spain's credit rating. The rating was cut from A3 to baa3. That
means that Moody's officials believe the credit risk of Spanish debt has moved from very low to
moderate. The company said it acted because Spain is borrowing about one hundred twenty-five
billion dollars in rescue loans for its banks. Debt markets punished Spain by pushing up the
interest rate on its long-term debt to about six point eight percent. That increases Spain's
borrowing costs and hurts its already troubled economy. Spain was not the only country to get
downgraded by Moody's. Cyprus got the same treatment.Recently, American Treasury Secretary
Tim Geithner spoke at the Council on Foreign Relations in Washington. He said the increase in
borrowing costs for European countries like Spain means European officials must move quickly to
avoid growing costs. In his words, "If you wait to move in these things and you let the market get
ahead of you, then you increase the costs of the solution, and you make it harder to get there.
Once you decide," he said, "there is no argument for doing it slowly."Germany, Europe's largest
economy, has been pushing for economic reform in the seventeen countries using the euro. But
German Chancellor Angela Merkel has argued that her country is unwilling to put money at risk
unless banking reform is enacted throughout the Eurozone. She warned that Germany's economic
power was not unlimited.In early June, the European Commission proposed steps toward a
common banking policy. The proposals include empowering nations to intervene when their banks
are in trouble. But proposed changes may also bar support for failing banks. Some European
leaders are pressing for an expanded European bailout fund. Germany has resisted providing new
financial resources. But details of any deal with big European economies have yet to be decided.
Europe's financial crisis is likely to be a major international issue in the weeks to come. For VOA
Special English, I'm Alex Villarreal. You can read, listen and learn English with more stories about
economics and other subjects at voaspecialenglish.com. (Adapted from a radio program broadcast
15Jun2012)

19

Public Debt, Protests Made Economic News in 2011
Today we look back at some of the top stories of twenty-eleven. In Europe, the debt crisis that
started in two thousand ten in Greece and Ireland spread to other countries. Portugal needed a
financial rescue, and Italy needed a new prime minister. Silvio Berlusconi lost his job over Italy's
debt problems. Former European Union official Mario Monti replaced him in November.Pressures
on Europe's financial system called into question the future of the euro. European finance officials
called for greater cooperation and new rules. World Bank President Robert Zoellick said Europe
would have to find its own answers to its debt problems. "Europe has to rescue Europe, OK? And
it's very important. If there's any message when I'm asked, "Well, what can the U.S. do and what
can China do?" The best thing they can do is clean up their act at home, be a source of growth at
home."Mr. Zoellick also said it was important for other big economies to deal with their own
budget imbalances. "The downgrade of America from triple A didn't affect the finances today, but
it may be one of those events people look back on ten years from now and say, 'Did they get the
warning?'" In August, a credit rating agency cut the United States' credit rating from the highest
level, triple A, to double A-plus. Also in August, Steve Jobs stepped down as chief at Apple because
of his failing health. He died of cancer in October at the age of fifty-six. He brought the world the
iPod, iPhone and iPad, and helped make Apple into one of the world's most valuable companies.
Twenty-eleven will be remembered as a year of protests. Revolutions for political freedom swept
North Africa and the Middle East in the Arab Spring. But protests over budget cuts and jobs were
heard around the world. In the United States, activists in hundreds of cities protested economic
inequality and joblessness. Protesters were angry that banks got rescued with taxpayers' money
during the financial crisis nearly four years ago. But many Americans continue to face hardship.
Anger over government budget cuts led to protests in Greece, Britain and elsewhere. And in
southeastern China, villagers in Wukan rebelled against local officials they accused of illegally
taking land. For VOA Special English, I'm Alex Villarreal. If your New Year's resolution is to learn
English, we can help. Find out more at voaspecialenglish.com and on Facebook, Twitter and iTunes
at VOA Learning English. (Adapted from a radio program broadcast 30Dec2011)

20

Religion Gets Largest Share of Charity in US
Americans gave about two hundred ninety billion dollars to charity last year. That was ten billion
dollars more than the amount of charitable giving in two thousand nine. The estimates are from
the Giving USA Foundation and its research partner, the Center on Philanthropy at Indiana
University. Charities are nonprofit organizations that raise money to provide social services or
other programs. Giving USA has been reporting on charitable donations since nineteen fifty-six.
The group estimates that about seventy-five million households gave to at least one charitable
organization in the United States last year. A household is one or more people living in a home.
The largest share of charitable giving goes to religious groups. Giving USA says they received thirty-
five percent of all donations in twenty-ten. Some people give a percentage of their pay to religious
organizations. Schools and other education-related organizations were second on the list. They
received an estimated fourteen percent of all charitable giving last year. The federal tax agency,
the Internal Revenue Service, recognizes donations to official charities. Those who give to charity
may be able to get tax breaks and reduce the amount of taxes they owe. People who give to
charity may want to know how their donations are being spent. Organizations like Charity
Navigator and the American Institute of Philanthropy look at how charities spend the money they
receive. Their reports and ratings offer a measure of how effectively the charities use their money.
For example, donors can learn how much a group spends on services, compared to how much it
spends on itself in administrative costs. Charity Navigator recently asked donors and charities to
answer questions about year-end giving trends this year. More than five hundred donors and one
hundred charities completed the questionnaire. On average, these charities said they received
forty-one percent of all their donations in the last few weeks of the year. Charity Navigator also
asked donors about the kinds of charities they would likely support this holiday season. Human
services rated at the top of the list. Arts, culture and humanities rated at the bottom.For VOA
Special English, Im Alex Villarreal. Read, listen and learn with our programs and English teaching
activities at voaspecialenglish.com and on the VOA Learning English page on Facebook. (Adapted
from a radio program broadcast 23Dec2011)