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Gene Ellis

Why Is Zambia So Poor? And Will Things Ever Get Better? - 0 views

  • Sixty-four percent of the population lives on less than $1 per day, 14 percent have HIV, 40 percent don’t have access to clean drinking water. Almost 90 percent of women in rural areas cannot read or write. Name a category—schools, health care, environment—and I’ll give you statistics that will depress the shit out of you.
  • For more than 150 years, the only reason to come to Kitwe—to Zambia, really—was the copper.
  • Most of the buildings in Kitwe, the roads, the health clinics, the schools, were built by the national mining company
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  • At its peak, the Zambia Consolidated Copper Mines company employed more than 65,000 Zambians and carried out services like water delivery and waste collection for five cities in the Copper Belt Province.
  • Mining employment has dropped to just 30,000, half of its glory-days peak, and the job of maintaining all that company housing and infrastructure has reverted back to the government.
  • The stats identify Switzerland as Zambia’s primary export market. This is not an indicator that Zambia hosts a thriving chocolate and suspenders sector, but rather that its copper trades are booked in the jurisdiction where they are least likely to be taxed.
  • Many of the mining companies pay just 0.6 percent royalties to Zambia, far below the already-meager industry standard of three percent.
  • And then there’s the Chinese. They arrived like a well-packed picnic, everything in shipping crates ready to be unpacked. Their own materials, their own equipment, their own workers, their own fences. If you were designing a foreign investment not to benefit the host community, this is what it would look like.
  • This is Namwile Uzondile, the director of a rural health education project.
  • Last year Namwile conducted a survey of prostitutes here in Kitwe, and found that at least half of them had education certificates, but couldn’t find work. Most had been married off early, 15 or 16, and since then had either left their husbands or lost them to AIDS.
  • First, you go to the tribal chief. Ninety-four percent of the land in Zambia is customary or traditional, no one has a title to it. It’s not just sitting there, people are living on it, farming, grazing animals, it’s just technically under the control of a chief.
  • In Zambia most of the chiefs require a gift just to get a meeting. This might mean taking them lunch at a restaurant in Lusaka, or it could mean buying their daughter a car—it’s up to them.
  • Another reason Zambia lacks skills is that some parts of the workforce operate as cartels. Take lawyers. Zambia only has 1,000 of them, and they’re concentrated where the money is: Lusaka (government), Copper Belt (mining) and Livingstone (safari tourists).
  • Last year, only six lawyers were admitted to the bar out of 164 who took the exam. The year before that, it was 16 out of 145. Keep in mind, these aren’t people coming in off the streets. These are people who have a law degree.
  • More than 60 percent of Zambia’s government revenue comes from the copper mines.
  • Taxing all this informal activity would be costly in both resources and voter goodwill. In 2012, Zambia collected just $2.3 million in income taxes from its citizens.
  • It goes as high up as you want to follow it. Michael Sata, the president of Zambia, appointed his uncle the finance minister, his nephew the deputy finance minister, his niece the local government minister, and cousins as ambassador to Japan and chief justice.
  • Zambia’s cabinet has ballooned to 20 ministers and 47 deputy ministers, the largest in Africa. With salaries three to four times higher than opposition MPs and each ministerial post bundled with perks like a company car, free fuel, house servants, and mobile phone talk-time, you get the feeling politicians aren’t jumping from opposition into government on moral sentiment alone.
  • But even if Zambia was run by a coalition of charitable technocrats and Mormon philanthropists, that wouldn’t solve the most fundamental problem of all: There simply isn’t that much money to go around.
  • In 2011, Zambia spent a total of $4.3 billion running itself. Stretch that to cover every man, woman, and child, and it amounts to just $325 per person per year. That amount—less than a dollar per person per day—has to cover education, health care, infrastructure, law enforcement, foreign debt … everything.
  • Now she goes all NGO. “Little government capacity,” she says, is the nicest way to put it. “There are simply no systems for routine government services,” she says. Getting a license, a permit, certificates, approvals to start work, visas for expats to fly down here—nothing is in one place, nothing is fast or easy.
  • And that’s just the bureaucracy. Then there are the cops that pull you over to ask for 50 kwacha ($10); the schools with slots reserved for paying parents; the hospitals that swear the earliest appointment, the only available medicine, is six months away until you reach into your pocket.
  • “Sometimes we have to pay for the inspectors to come to our mines,” Jane says.
  • The conversation goes like this: Jane tells the local certification body that she needs an inspector to sign off for a permit. The local certification body tells her that they would be happy to come out to the site, but they don’t have fuel for their cars, or enough petty cash to pay per diems. Jane offers to pay their costs, but only their costs, and the payments aren’t related to clearing the inspection.
  • The company has even paid the police to follow up on complaints or to investigate thefts. “They say, ‘We don’t have this in our budget’ or ‘We’ll need you to pay for it,’” Jane says. So the company fixes the police cars, covers their travel expenses, treats them to lunch.
  • “We tell them, ‘The company I work for, we’re not going to pay up.’ But at the end of the day, they know you’re on a short timeline, and they aren’t.”
  • Thomas’ family told him his nephews didn’t need to be in school. From their perspective, that’s not totally irrational. In a country with so few formal jobs and so much competition for getting them, I can see how spending hundreds of hours, thousands of kwachas, on education would seem superfluous. Thomas’ daughter wants to become a lawyer. You could almost forgive Thomas if he told her that the bar exam failure rate is more than 90 percent, so what’s the use?
  • International investors pledged $750 million last year to build infrastructure.
Gene Ellis

Red, Green, and Blue | Patriotism that loves our country, our land, and our planet - 0 views

  • What is ironic is that these vines represented about the least scary GMO crop imaginable.  They were engineered to be resistant to a disease called Fan Leaf Virus that is spread by nematodes that live in the soil.  Back before people understood this disease it was unintentionally spread to many grape-growing areas.  Once a given vineyard is contaminated with the nematodes and virus, grapes will only survive for a few years on that site before declining and dying.  Some of the best wine production areas around the world are seriously compromised this way, and there has been no lasting cure.
  • at was being tested in Colmar was a “rootstock.”  All grapes are cuttings of the desired variety (Gewurtztraminer, Cabernet, Chardonnay…) grafted on to a root that is resistant to various pests.  The Colmar roots would have also been resistant to the virus.  The top of the vine (all that is above ground) would be exactly like all the neighboring vineyards.  In theory the grapes wouldn’t die in a few years (that is what the researchers were hoping to demonstrate).
  • but this same irrationality is hindering efforts to provide things like virus resistant Cassava to poor farmers in Africa or virus resistant Papayas to people in Thailand. 
Gene Ellis

Nigeria Pays Off Its Big Debt, Sign of an Economic Rebound - NYTimes.com - 0 views

  • Nigeria reached a deal last October with the Paris Club, which includes the United States, Germany, France and other wealthy nations, that allowed it to pay off about $30 billion in accumulated debt for about $12 billion, an overall discount of about 60 percent.
  • Nigeria, which owed about $36 billion in overall debt, is one of the most indebted nations in the world.
  • Yet Nigeria had not been among the nations that have received write-offs or discounts on their debts, as several poor countries have. In part that is because of its reputation for corruption, earned by a succession of military governments that plundered the state treasury, and because Nigeria, with its oil wealth, is seen as being able to pay.
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  • But Nigeria's debt was largely accumulated under civilian governments,
  • The World Bank president, Paul D. Wolfowitz, announced on Friday an important step toward providing $37 billion in debt relief to 17 of the poorest countries, most of them in Africa. He said he had enough votes from donor countries on the board of the International Development Association, the bank arm that provides very low interest loans, to approve the measure.
  • The 17 countries will begin receiving the relief, worth close to $1 billion a year over 40 years, on July 1. They are Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Guyana, Honduras, Madagascar, Mali, Mozambique, Nicaragua, Niger, Rwanda, Senegal, Tanzania, Uganda and Zambia.
Gene Ellis

As Drilling Practice Takes Off in U.S., Europe Proves Hesitant - NYTimes.com - 0 views

  • Germany’s decision to eliminate its nuclear plants led it to bring coal-fired power plants out of mothballs to make up the difference. Doing so was a viable option because coal demand in the United States has dropped sharply as American power plants have turned to less expensive gas, driving down the cost of American coal for export to global markets.
  • As a result, carbon dioxide emissions in Germany went up last year, not down
  • “Without shale gas, this would be a world where Russia would have very, very strong market power and there would be very strong dependency on gas supply from geopolitically risky regions in the Middle East, Iran and North Africa,” said Laszlo Varro, the director of the Gas, Coal and Power Markets Division of the International Energy Agency.
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  • Gazprom, the huge Russian gas company, finds its traditional business model in trouble. Under the pressure of a market in which gas is being supplied from more places, Gazprom has had to renegotiate gas contracts with European countries, costing it $6 billion, Mr. Varro said.
  • “Gazprom is not against shale gas,” Mr. Stevens said, “it’s just against everyone else having it.”
  • As Europe becomes a more “contestable market” with more integrated pipelines, more liquefied natural gas and more shale gas, behavior will change. “If people can come in easily, the threat of coming in will make the monopolist behave differently,”
Gene Ellis

Gaps in Graduates' Skills Confound Morocco - NYTimes.com - 0 views

  • “It’s sad to note that the state of education is worse now than it was 20 years ago,
  • “How is it that a segment of our youth cannot realize their legitimate aspirations at professional, physical and social levels?”
  • They say that their education has left them ill-equipped for the workplace.
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  • but she is worried that the education she is getting, in a public system that she faults on quality, will not be enough to win her a place in a job market that she says is often skewed by bribery and favoritism.
  • “Students do not have an equal chance to succeed,” she said, adding that many parents had gone into debt trying to ensure that their children have some chance for a future by paying for them to study in private schools. “The quality of education all depends on the parents’ income.”
  • about one-third of the country’s civil servants work in the sector.
  • In his speech he called for mandatory foreign language training in university degree courses and a new emphasis on vocational and technical training.
  • In the 1980s, a political decision to reclaim the Moroccan identity resulted in a change in the language of instruction, with elementary and high school classes shifting to Arabic. Most higher education programs, however, remained in French.
  • Many critics attribute high dropout rates to this language switch. University students, they say, are struggling to learn in a language they barely understand.
  • Mr. Mrabet said other problems included an excessive focus in graduate training on quantity over quality; a failure to adapt courses to workplace opportunities; overcrowded lecture halls; student strikes; and school financing issues.
  • Instead of hiring graduates of the Moroccan public education system, recruiters tend to look for graduates educated abroad or the products of Moroccan private schools,
  • “Call centers are the biggest employers in Morocco with about 50,000 jobs that generally require good skills in French,” he said. “In some fields, like I.T., it is difficult to find people with the adequate training.”
Gene Ellis

Amid Rows of Tin Shacks, a Luxury Hotel Rises - Slide Show - NYTimes.com - 0 views

  • Amid Rows of Tin Shacks, a Luxury Hotel Rises
Gene Ellis

Crisis Swirls in Kenya, and Politicians Reward Themselves - New York Times - 0 views

  • Still, some say legislators have lost touch with the poor districts they represent. Per capita income is about $463 a year, which nobody here would expect a lawmaker to survive on. Minimum wage is $924 a year, still far too little, in most Kenyans' view, for someone taking care of the nation's business. But the base compensation that legislators earn is about $81,000 a year, tax free, plus a variety of allowances and perks, which can effectively double their take-home pay. That means those public servants earn more than most Kenyan corporate executives and outstrip the salaries of many of their counterparts in the developed world.
Gene Ellis

BBC News - Explore DR Congo in maps and graphs - 0 views

  • Explore DR Congo in maps and graphs
Gene Ellis

BBC News - South Sudan rebels take Bor town after 'coup attempt' - 0 views

  • South Sudan rebels take Bor town after 'coup attempt'
Gene Ellis

American and 2 Japanese Physicists Share Nobel for Work on LED Lights - NYTimes.com - 0 views

  • American and 2 Japanese Physicists Share Nobel for Work on LED Lights
  • In Africa, millions of diode lamps that run on solar power have been handed out to replace polluting kerosene lamps.
  • For the same amount of energy consumption, LED bulbs produce four times the light of a fluorescent bulb and nearly 20 times the light of an incandescent bulb.
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  • ED bulbs are also more durable, lasting 10 times as long as a fluorescent bulb and 100 times as long as an incandescent bulb.
  • In 2006 he was awarded the Millennium Technology Prize of one million euros (about $1.3 million) for inventing the first efficient blue-light laser, opening the way for things like Blu-ray players.
Gene Ellis

Oversize Expectations for the Airbus A380 - NYTimes.com - 0 views

  • this aircraft, which can hold more than 500 passengers. The plane dwarfs every commercial jet in the skies.
  • Its two full-length decks total 6,000 square feet, 50 percent more than the original jumbo jet, the Boeing 747.
  • The A380 was also Airbus’s answer to a problematic trend: More and more passengers meant more flights and increasingly congested tarmacs. Airbus figured that the future of air travel belonged to big planes flying between major hubs.
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  • Airbus has struggled to sell the planes. Orders have been slow, and not a single buyer has been found in the United States, South America, Africa or India.
  • While the A380 program has been a boon for the European aerospace industry, Airbus is unlikely to recover its research and development costs. The best it can now expect is to break even on production costs, according to analysts, provided that it can keep orders going.
  • Airbus made the wrong prediction about travel preferences. People would rather take direct flights on smaller airplanes, he said, than get on big airplanes — no matter their feats of engineering — that make connections through huge hubs.
  • “It’s a commercial disaster,” Mr. Aboulafia says. “Every conceivably bad idea that anyone’s ever had about the aviation industry is embodied in this airplane.”
  • Airline executives were wary of expanding their fleets aggressively, especially for a costly, four-engine fuel hog.
  • And there are a fair number of those routes. Around 15 of the 20 largest long-haul routes by passenger volume in the world today are slot-constrained,
  • “The A380 is not made for every route, but it is ideal for high-traffic routes, high-volume routes that are congested, or where there are flying constraints,”
  • A little more than a decade ago, the two dominant airplane makers, Boeing and Airbus, looked at where their businesses were headed and saw similar facts: air traffic doubling every 15 years, estimates that the number of travelers would hit four billion by 2030 — and came to radically different conclusions about what those numbers meant for their future.
  • Boeing, too, is facing lukewarm demand for its latest jumbo jet upgrade, known as the 747-8. The company has received just 51 orders for this big plane, which can seat about 460 passengers and lists at $357 million. By contrast, it has sold more than 1,200 twin-engine 777s, which sell for as much as $320 million.
  • Richard H. Anderson, Delta’s chief executive, has said the A380 is “by definition an uneconomic airplane unless you’re a state-owned enterprise with subsidies.”
  • Bruno Delile, Air France’s senior vice president for fleet management, says that there are a limited number of routes in its network with enough daily traffic to justify the expense of such a big plane. “The forecasts about traffic growth and market saturation haven’t exactly panned out,” he says.
  • Not only do airlines take a big risk on the size and cost of the A380, but they also have to gain the cooperation of airports to modify gates and widen taxiways to make room for the plane.
  • With versions that seat 210 to 330 passengers, and with a range of about 9,000 miles, the 787 allows airlines to fly pretty much anywhere in the world and connect smaller airports without going through a hub.
  • And passengers are willing to pay more to avoid a connection
  • f most airlines appear skeptical of the A380, Emirates is a true believer. It stunned the industry in December when it ordered 50 more of the planes, beyond the 90 it already had on order, throwing Airbus a much needed lifeline
  • The airport handled 66 million passengers last year, rivaling Heathrow as the busiest international hub.
  • for Emirates, the biggest selling point of the A380 is its ability to pack in more business-class seats and create an environment that appeals to big-spending passengers.
Gene Ellis

A Scramble for Tin in Congo - The New York Times - 0 views

  •  
    good slide show
Gene Ellis

IRIN Africa | GUINEA: Winners and losers in Guinea's bauxite industry | Guine... - 0 views

  • GUINEA: Winners and losers in Guinea’s bauxite industry
  • “Rather than making people richer, mining has made them poorer,” said Akoumba Diallo, a mining sector researcher. “It polluted their environments so they can’t grow crops or let animals feed near mining sites. And it is hard to get water anywhere because it’s contaminated.” With mining contributing to 85 percent of the country’s external revenue, and the World Bank estimating investments of up to US$20 billion in bauxite mining in Guinea over the next decade, the government is currently rewriting and renegotiating its mining contracts - unchanged for 25 years - with 15 companies to ensure Guineans are more likely to benefit from the wealth they spawn.
  • Mining companies are legally obliged to pay taxes to owners of the land they mine,
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  • “We have been paying US$100,000 in annual taxes directly to the Kindia prefecture,” he told IRIN. “The distribution of the money rests with them according to the needs they have identified in Mambia.”
  • Seeing this for themselves, the CBK became concerned that the money was not being well spent, according to Cirra Dieng, communications officer at the CBK, and withdrew its payments in 2007 awaiting some explanation. They are still waiting.
  • The EITI has set up a monitoring committee made up of government representatives, mining companies and civil society to push mining companies to publish what they pay and the government to disclose what it receives at the state, prefecture and CRD level. So far it has done so for six mining companies, including the CBK.
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