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Ed Webb

The World Bank's Doing Business Indicators Still Work - Foreign Policy - 1 views

  • The Doing Business indicators measure the costs and the number of steps for starting a formal business — for example, a car dealership. If one were to open a car dealership in Madagascar, it would take eight days and cost 35.8 percent of the average annual income (this cost includes official fees and fees for legal or professional services). If one wanted to open a car dealership in Malaysia, it would take 18 to 19 days and cost 5.4 percent of the average annual income. Contrast this with opening a car dealership in United States, where it would only take around four days and cost 1.3 percent of the average annual income. The steps and costs reflect rules, and sometimes the corruption, in a system.
  • The existence of Doing Business has brought about thousands of reforms across the world over the last 15 years. They have led to job creation and improved access to credit and business registration, enhancing competition and investment opportunities worldwide.
  • Doing Business uses country pride and even national chauvinism as a form of jiu jitsu to get countries to reform policies that impact business regulations
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  • Doing Business is a sort of economic cholesterol check — important, even critical, but not the whole story.
  • some critics perceive Doing Business as a libertarian argument against the collection of taxes. On the contrary, Doing Business facilitates the participation of companies in the formal economy, including the payment of taxes and respect for the legal framework
  • The consensus, quite reasonably, calls for more women’s economic empowerment in the developing world. If we want to see empowerment, that generally means women participating in the formal economy, accessing loans from banks, and participating in global supply chains. Any business that seeks bank loans or seeks to participate in supply chains needs to be a formal business. Making it easier for anyone to start a business also has a positive impact on women’s economic empowerment
  • The Doing Business indicators have been subject to a number of methodological adjustments. These have been relatively minor in impact on most countries’ rankings. In the case of Chile, for a variety of reasons, the rankings swung more wildly, in such a way that the center-left Michelle Bachelet administration accused the World Bank and the rankings of being politically motivated. To make matters worse, Paul Romer, then the chief economist of the World Bank, in response to a question from the Wall Street Journal about the possibility of the the ranking being “tainted by the political motivations of bank staff” seemed to imply that he found the rankings unfair and misleading, and he said he would “recalculate national rankings of business competitiveness.” This caused a furor. Romer retracted his statement within 72 hours, the World Bank board reviewed the indicators, and management formally responded.
  • In the future, the World Bank’s money will be less and less important. Instead, its analytics, data, and ability to share lessons across countries are going to be increasingly valued. The World Bank imprimatur also matters more than we appreciate in the United States. The Doing Business indicators should be a big part of the World Bank’s future. Countries that seek to make improvements in their rankings of Doing Business are countries that seek to have better governance and have reform-minded governments. After 15 years of effort, Doing Business has improved with time and is one of the most valuable assets of the World Bank Group.
Ed Webb

Outgrowing growth: why quality of life, not GDP, should be our measure of success - The... - 0 views

  • The old fantasy that market mechanisms will somehow magically solve the climate crisis has been thoroughly dashed, and a new consensus is emerging: we need coordinated government action on a massive scale. 
  • Climate scientists are warning that it’s not feasible for high-income nations to transition to renewables fast enough to stay within the carbon budget for 1.5C, or even 2C, if they continue to pursue economic growth at the usual rates. Why? Because more growth means more energy demand, and more demand makes it all the more difficult to roll out enough renewable energy capacity. According to a team of scientists based in Canada,
  • Our dogged insistence on economic growth is making this vital task much more difficult than it needs to be. It’s like choosing to fight a life-or-death battle while going uphill, blindfolded, with both hands tied behind your back. We are voluntarily sabotaging our chances at success. 
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  • if we want a decent shot at climate stability, high-income nations will have to shift to post-growth economic principles
  • Post-growth thinking is starting to trickle into policy, too. Jacinda Ardern, the prime minister of New Zealand, captured headlines in 2019
  • Economists have long assumed that we need growth to improve people’s lives. But it turns out there’s no empirical evidence for this argument. Beyond a certain point, which high-income countries have long since surpassed, the relationship between GDP and human wellbeing completely breaks down.
  • dozens of countries beat the US in life expectancy with only a fraction of the income
  • universal public services are significantly more cost-efficient than their private counterparts. Spain spends $2,300 per person on healthcare,
  • The reason that GDP growth tends not to deliver the outcomes that we might expect is because the vast majority of it goes straight into the pockets of the rich. They are the real beneficiaries of growth. In the United States, the incomes of the richest 1% have more than tripled since the 1970s,
  • growthism
  • We can accomplish our social goals right now, without any growth at all, simply by sharing what we already have more fairly, and by investing in generous public goods. It turns out justice is the antidote to the growth imperative – and key to solving the climate crisis.
  • The less energy we use, the easier it is to accomplish a rapid transition to renewables. This is perhaps the single most important lesson that climate science has taught us in the past few years.
  • Think of all the energy that’s needed to extract and produce and transport all of the material commodities that the economy churns out each year. Think of the mining, the logging, the factories, the packaging, the container ships, the warehouses, the retail outlets and the waste disposal facilities. The material economy is a giant energy-sucking machine. By reducing the material "throughput" of our economy – the amount of stuff we produce and consume – we can reduce our energy demand. 
  • The key thing to grasp is that a huge chunk of material production in our economy is intended, literally, to be wasted. Firms desperate to overcome the limits of saturated markets resort to all sorts of devious tactics to artificially increase turnover. Take planned obsolescence, for example. The lifespan of household appliances like refrigerators and washing machines has plummeted over the past few decades.
  • Research by US sociologists has revealed that advertising expenditures have a direct impact
  • We like to think of capitalism as a system that’s rational and efficient when it comes to meeting human needs. But in some respects, it’s exactly the opposite. In pursuit of constant growth, firms resort to intentional inefficiencies. This might be rational from the perspective of profits, but from the perspective of human need, and from the perspective of ecology, it is a kind of madness. It is madness in terms of human labour, too. Think about the millions of hours that are poured into producing stuff that’s designed to break down, or that people don’t actually need in the first place.
  • We can legislate for long-term warranties, rights to repair, and mandatory take-back schemes. We can regulate marketing expenditures, and we can liberate public spaces from ads telling us to buy even more – both offline and online. The gains from this could be enormous. Think about it: if clothes and refrigerators and smartphones last twice as long, we will consume half as many. That’s half the extraction, half the shipping, half the warehouses, half the transport, half the waste – and half the energy it takes to power it all. 
  • There are also a number of other steps we can take. We can shift from private cars to public transport. We can ban food waste by supermarkets and farms. We can cut single-use packaging. And we can choose to scale down ecologically destructive and socially less necessary industries, such as SUVs,
  • But, you might ask, what about jobs? As we scale down unnecessary industrial activity, won’t that cause unemployment to rise? Under normal circumstances, yes. But ecological economists have a surprisingly simple solution to this: shorten the working week. Add a job guarantee to the mix (a policy that happens to be resoundingly popular)
  • What’s exciting about this move is that it has a substantial positive impact on wellbeing. Studies in the US have found that people who work shorter hours are happier than those who work longer hours, even when controlling for income. And it has a big impact on energy demand, too. If the United States were to reduce its working hours to the levels of western Europe, its energy use would decline by a staggering 20%. 
  • Public interest in post-growth economics has soared over the past year as the climate crisis worsens. With fires blazing through Australia and the Amazon, floods swamping northern England, droughts driving migration, and record heatwaves searing across Antarctica, people realise that the status quo has us hurtling toward disaster, and they’re increasingly open to new ideas. In the 2020s, we can expect that the climate movement will rally around the Green New Deal and a vision for a completely new economy. 
Ed Webb

Stolen Vehicle Intercepts are on the Rise at US Ports - 0 views

  • While most attention that port security gains is focused on the importation of illegal goods, contraband, and narcotics, U.S. Customs and Border Protection (CBP) also conducts outbound cargo examinations at the nation’s ports. One of the items that they are seeking are stolen vehicles being shipped overseas. CBP reports that among the methods criminal organizations are using is car theft looking to sell them in overseas markets. To do this they need to quickly export the stolen vehicle to get it away from US law enforcement.
  • The number of stolen car interceptions is on the increase, according to CBP. For example, the Baltimore field office cited a significant rise in the past three years. They recovered 100 stolen cars in 2018, a record 246 in 2019, and 157 this last year. That compares with just 41 stolen cars recovered in 2015, 14 in 2016, and 43 in 2017.
  • “Transnational criminal organizations use stolen vehicles as a form of currency to fund their illicit enterprise and it is incumbent upon us to disrupt their trade in stolen vehicles through rigorous outbound cargo examinations,”
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  • two-thirds are sport utility vehicles, with the highest valued being a 2019 Land Rover Range Rover destine to Guinea which they valued at $114,175. The newest vehicle recovered was a 2020 Maserati Ghibli, destined to Jordan valued at $78,485.
Ed Webb

Obama Bid for Europe Trade Pact Stirs Hope on Both Sides - www-nc.nytimes.com - Readabi... - 1 views

  • Experts cited tough economic times on both sides of the Atlantic and a perceived need among European leaders for a cause to unify their frayed union as major reasons that an agreement might be reached now, where past efforts have failed. But an even greater consideration, they said, was the growing economic might of China
  • Negotiations are not expected to be easy, with entrenched interests, especially in protected sectors of the agriculture industry, fighting to maintain their subsidies and preferences. European consumers have rejected the kinds of genetically modified crops3 that are commonplace in the United States but are known across the Atlantic as Frankenfoods. Nevertheless, Mr. Obama’s announcement was applauded by leading politicians and business groups in Europe, especially here in Germany, and so far the news has not provoked the instant union opposition in the United States that free-trade talks with underdeveloped, low-wage countries do.
  • In a Democratic administration, free-trade agreements are much easier to reach with higher-wage, unionized countries like those in Europe that do not spook trade unions. And the cross-pollination between American and European companies, as in the auto sector, also is expected to blunt opposition from labor groups
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  • China may present the single most compelling factor. There is an increasing awareness that to deal with the challenge of China’s rapidly growing economy, Europe and the United States will have to learn to cooperate better
  • European leaders, including Prime Minister David Cameron of Britain and Chancellor Angela Merkel of Germany, have been pushing for a trade deal as a low-cost way of stimulating their struggling economies. The United States Chamber of Commerce and large companies like General Electric have also lobbied for an agreement
  • Potentially more important than abolishing tariffs, but also much more complicated, would be a deal that harmonized regulations on products like food, cars, toys and pharmaceuticals. Automobile manufacturers would like to see agreement on safety and emissions standards for cars, reducing or eliminating the need to build different versions for the American and European markets. Matthias Wissmann, head of the German Association of the Automotive Industry, said that harmonizing safety features would save several hundred dollars per automobile. Mr. De Gucht, who is expected to lead the talks on the European side, said that a deal could provide vital leverage over emerging powerhouses like China
Ed Webb

How Goldman Sachs Created the Food Crisis - By Frederick Kaufman | Foreign Policy - 0 views

  • in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food
  • After World War II, the United States was routinely producing a grain surplus, which became an essential element of its Cold War political, economic, and humanitarian strategies -- not to mention the fact that American grain fed millions of hungry people across the world
  • Futures markets traditionally included two kinds of players. On one side were the farmers, the millers, and the warehousemen, market players who have a real, physical stake in wheat. This group not only includes corn growers in Iowa or wheat farmers in Nebraska, but major multinational corporations like Pizza Hut, Kraft, Nestlé, Sara Lee, Tyson Foods, and McDonald's -- whose New York Stock Exchange shares rise and fall on their ability to bring food to peoples' car windows, doorsteps, and supermarket shelves at competitive prices. These market participants are called "bona fide" hedgers, because they actually need to buy and sell cereals. On the other side is the speculator. The speculator neither produces nor consumes corn or soy or wheat, and wouldn't have a place to put the 20 tons of cereal he might buy at any given moment if ever it were delivered. Speculators make money through traditional market behavior, the arbitrage of buying low and selling high. And the physical stakeholders in grain futures have as a general rule welcomed traditional speculators to their market, for their endless stream of buy and sell orders gives the market its liquidity and provides bona fide hedgers a way to manage risk by allowing them to sell and buy just as they pleased.
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  • Every time the due date of a long-only commodity index futures contract neared, bankers were required to "roll" their multi-billion dollar backlog of buy orders over into the next futures contract, two or three months down the line. And since the deflationary impact of shorting a position simply wasn't part of the GSCI, professional grain traders could make a killing by anticipating the market fluctuations these "rolls" would inevitably cause. "I make a living off the dumb money," commodity trader Emil van Essen told Businessweek last year. Commodity traders employed by the banks that had created the commodity index funds in the first place rode the tides of profit
  • dozens of speculative non-physical hedgers followed Goldman's lead and joined the commodities index game, including Barclays, Deutsche Bank, Pimco, JP Morgan Chase, AIG, Bear Stearns, and Lehman Brothers, to name but a few purveyors of commodity index funds. The scene had been set for food inflation that would eventually catch unawares some of the largest milling, processing, and retailing corporations in the United States, and send shockwaves throughout the world
  • Not only does the world's food supply have to contend with constricted supply and increased demand for real grain, but investment bankers have engineered an artificial upward pull on the price of grain futures. The result: Imaginary wheat dominates the price of real wheat, as speculators (traditionally one-fifth of the market) now outnumber bona-fide hedgers four-to-one.
  • a problem familiar to those versed in the history of tulips, dot-coms, and cheap real estate: a food bubble
  • when the global financial crisis sent investors running scared in early 2008, and as dollars, pounds, and euros evaded investor confidence, commodities -- including food -- seemed like the last, best place for hedge, pension, and sovereign wealth funds to park their cash. "You had people who had no clue what commodities were all about suddenly buying commodities," an analyst from the United States Department of Agriculture told me. In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since
  • The more the price of food commodities increases, the more money pours into the sector, and the higher prices rise
  • from 2005 to 2008, the worldwide price of food rose 80 percent -- and has kept rising
  • speculation has also created spikes in everything the farmer must buy to grow his grain -- from seed to fertilizer to diesel fuel
  • The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion people across the world who spend more than 50 percent of their income on food, the effects have been staggering: 250 million people joined the ranks of the hungry in 2008, bringing the total of the world's "food insecure" to a peak of 1 billion -- a number never seen before.
  • I asked a handful of wheat brokers what would happen if the U.S. government simply outlawed long-only trading in food commodities for investment banks. Their reaction: laughter. One phone call to a bona-fide hedger like Cargill or Archer Daniels Midland and one secret swap of assets, and a bank's stake in the futures market is indistinguishable from that of an international wheat buyer. What if the government outlawed all long-only derivative products, I asked? Once again, laughter. Problem solved with another phone call, this time to a trading office in London or Hong Kong; the new food derivative markets have reached supranational proportions, beyond the reach of sovereign law
  • nervous countries have responded instead with me-first policies, from export bans to grain hoarding to neo-mercantilist land grabs in Africa. And efforts by concerned activists or international agencies to curb grain speculation have gone nowhere. All the while, the index funds continue to prosper, the bankers pocket the profits, and the world's poor teeter on the brink of starvation
Ed Webb

Brazil Arms Exports: Country Preaches Peace, Sells Tons Of Arms - 0 views

  • "To be honest, there are a lot more regulations on the export of corn, cars or any other product, than on arms," said Nicholas Marsh from the Norwegian Initiative on Small Arms Transfers. "Everything has to be registered with the WTO. Commerce is well-regulated. Meanwhile, arms commerce has always been excluded from international treaties."
  • since 2006, there is a WTO negotiation about establishing an international treaty to regulate the international commerce of conventional arms, whether heavy or light. Nuclear arms or high-lethality arms, such as clusterbombs, would be treated specifically. At the time, the negotiations for the Arms Trade Treaty were supported by 153 countries -- including Brazil -- but were rejected by the US, the world's biggest arms exporter. Although the Obama administration had supported the initiative, the majority of US senators were opposed, which resulted in an enormous international impasse. Such an idea also came up against fierce resistance from arms industry representatives in Brazil. "You are not going to have global organizations taking care of the market. Each nation is sovereign. Its people deserve respect and have the right to self-determination. Whether they have a bloody dictator or not, the people deserve it," said Jairo Candido, president of Com Defesa, a group from the Federation of Industries of São Paulo (FIESP) that lobbies for the sector.
Ed Webb

Climate Efforts Falling Short, U.N. Panel Says - NYTimes.com - 0 views

  • decades of foot-dragging by political leaders had propelled humanity into a critical situation, with greenhouse emissions rising faster than ever. Though it remains technically possible to keep planetary warming to a tolerable level, only an intensive push over the next 15 years to bring those emissions under control can achieve the goal
  • “If we lose another decade, it becomes extremely costly to achieve climate stabilization.”
  • the divisions between wealthy countries and poorer countries that have long bedeviled international climate talks were on display yet again in Berlin.Some developing countries insisted on stripping charts from the report’s executive summary that could have been read as requiring greater effort from them, while rich countries — including the United States — struck out language that might have been seen as implying that they needed to write big checks to the developing countries. Both points survived in the full version of the report, but were deleted from a synopsis meant to inform the world’s top political leaders
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  • since the intergovernmental panel issued its last major report in 2007, far more countries, states and cities have adopted climate plans, a measure of the growing political interest in tackling the problem. They include China and the United States, which are doing more domestically than they have been willing to commit to in international treaty negotiations
  • the emissions problem is still outrunning the determination to tackle it, with atmospheric carbon dioxide levels rising almost twice as fast in the first decade of this century as they did in the last decades of the 20th century. That reflects a huge rush to use coal-fired power plants in developing countries that are climbing up the income scale, especially China, while rich countries are making only slow progress in cutting their high emissions
  • It is increasingly clear that measures like tougher building codes and efficiency standards for cars and trucks can save energy and reduce emissions without harming people’s quality of life, the panel found. And the costs of renewable energy like wind and solar power are falling so fast that its deployment on a large scale is becoming practical
  • if greater efforts to cut emissions are not implemented soon, future generations seeking to limit or reverse climate damage will have to depend on technologies that permanently remove greenhouse gases from the air; in effect, they will be trying to undo the damage caused by the people of today
  • these technologies do not exist on any appreciable scale, the report said, and there is no guarantee that they will be available in the future, much less that they will be affordable
  • The new report, dealing with ways to limit the growth of the emissions that are causing climate change, is the third in recent months. A report released in Stockholm in September found a certainty of 95 percent or greater that humans were the main cause of global warming, and a report released in Yokohama, Japan, two weeks ago said profound effects were already being felt around the world, and were likely to get much worse.
  • the committee described money spent fighting climate change as a form of insurance against the most severe potential consequences
Ed Webb

Donald Trump Is the First Demagogue of the Anthropocene - The Atlantic - 0 views

  • Jürgen Scheffran, a professor of geography at the University of Hamburg, has been investigating whether climate change makes armed conflict more likely for more than a decade. In 2012, he worked on a team that analyzed all 27 empirical studies investigating the link between war and climate change.“Sixteen found a significant link between climate and conflict, six did not find a link, and five found an ambiguous relationship,” he told me. He described these numbers as inconclusive. Trying to prove that climate change is linked to war, he said, would be like trying to prove that smoking causes cancer with only one available case study.
  • there is only one world, and not a million worlds, in which the temperature is rising, and you cannot associate a single event—like a single hurricane or a single conflict—to climate change. It’s a statistical problem, and we don’t have enough data yet
  • the U.S. Department of Defense already considers global warming a “threat multiplier” for national security. It expects hotter temperatures and acidified oceans to destabilize governments and worsen infectious pandemics
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  • Martin O’Malley was mocked for suggesting that a climate-change-intensified drought in the Levant—the worst drought in 900 years—helped incite the Syrian Civil War, thus kickstarting the Islamic State. The evidence tentatively supports him. Since the outbreak of the conflict, some scholars have recognized that this drought pushed once-prosperous farmers into Syria’s cities. Many became unemployed and destitute, aggravating internal divisions in the run-up to the war
  • Scheffran underlined these climate connections but declined to emphasize them. “The Syrian War has so many complex interrelated issues—and most of them are political and economic—that the drought is just one contributing factor to the instability in the region,”
  • it’s all about the exogenous shock. We were all interested in, to what extent does a big event like a flooding or a drought undermine society, or trigger a conflict outbreak?
  • Heatwaves, droughts, and other climate-related exogenous shocks do correlate to conflict outbreak—but only in countries primed for conflict by ethnic division. In the 30-year period, nearly a quarter of all ethnic-fueled armed conflict coincided with a climate-related calamity. By contrast, in the set of all countries, war only correlated to climatic disaster about 9 percent of the time
  • climate disaster will not cause a war, but it can influence whether one begins
  • Models predict that northern Africa and the Levant, both already drought-prone, will dry out significantly over the course of the century. On the phone, Schleussner also cited southern Africa and south-central Asia as regions to watch. (It’s no coincidence that some of the largest, longest wars this century have occurred in those places.)
  • a drought-and-flood-fueled armed conflict near the Mediterranean Basin could send people toward Western Europe in the hundreds of millions
  • “I wouldn’t say that there would be a mass migration to Europe, but I would expect to see a large number of people being displaced within Africa,”
  • There is literally, in legal parlance, no such thing as an environmental refugee,” says Edward Carr. “To meet the international standard for refugee, a changing environment is not a forcing. It doesn’t count.”
  • When would you attribute the decision to move to changes in the climate? Does a place have to be dry for five years? For 10 years? Does someone have to have three children die, and then they decide to move?
  • Climate change could push Western politics toward demagoguery and authoritarianism in two ways, then. First, it could devastate agricultural yields and raise food prices; destroy coastal real estate and wash away family wealth; transform old commodities into luxury goods. Second, it could create a wave of migration—likely from conflict, but possibly from environmental ruination—that stresses international reception systems and risks fomenting regional resource disputes.
  • it could erode people’s sense of security, pushing them toward authoritarianism
  • Like the CEO in the 1950s who predicted that America would see flying cars and three-day workweeks by the year 1999, I’ve assumed that every ongoing trend line can be extrapolated out indefinitely. They can’t. The actual future will be far stranger.
  • climate change must be mitigated with all deliberate speed. But he also suggests certain cultural mechanisms. Some Americans may favor more restrictive immigration policies, but—in order to withstand against future waves of mass migration (and humanely deal with the victims of climate change)—racist fears must be unhooked from immigration restrictionism. In other words, as a matter of survival against future authoritarians, white supremacy must be rejected and defeated.
  • Improving the United States’s immune response to authoritarian leadership—a response that could be repeatedly tested in the century to come—can follow from weaving its civic fabric ever tighter. I don’t know what this will look like, exactly, for every person. But here are some places to start: Volunteer. Run for local or state office. Give to charity (whether due to religion or effective altruism). Organize at work. Join a church or a community choir or the local library staff. Make your hometown a better place for refugees to settle. Raise a child well.
  • climate realists have always split their work between mitigation—that is, trying to keep the climate from getting worse—and adaptation—trying to protect what we already have
Ed Webb

Mining the Future - Foreign Policy - 0 views

  • No new phone, tablet, car, or satellite transferring your data at lightning speed can be made without certain minerals and metals that are buried in a surprisingly small number of countries, and for which few commonly found substitutes are available. Operating in niche markets with limited transparency and often in politically unstable countries, Chinese firms have locked up supplies of these minerals and metals with a combination of state-directed investment and state-backed capital, making long-term strategic plays, sometimes at a loss
  • unprecedented concentration of market power
  • “Made in China 2025,” aims to build strategic industries in national defense, science, and technology. To meet these objectives, in October 2016, the Ministry of Industry and Information Technology announced an action plan for its metals industry to achieve world-power status: By deploying state-owned enterprises and private firms to resource-rich hot spots around the globe, China would develop and secure other countries’ mineral reserves—including minerals in which China already holds a dominant position
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  • By directly acquiring mines, accumulating equity stakes in natural-resource companies, making long-term agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for outright control or influence over large shares of the global production of these resources. Despite China’s slowing growth and a major pullback in its foreign direct investment in other sectors, the government has maintained robust financial support for resource acquisition; mergers and acquisitions in metals and chemicals hit a record high in 2018.
  • China lacks significant reserves of three resources vital to its tech ambitions: cobalt, platinum-group metals, and lithium. It has successfully employed two strategies to secure control of them. One is driven by China’s state-owned enterprises (SOEs), which use development finance and infrastructure investment to embed themselves in higher-risk countries, establishing close ties with government leaders. The second is investment by state-linked private firms in market-based economies. Both strategies have shown agility and an ability to effectively adapt to local circumstances to achieve the same end.
  • Chile is home to 57 percent of the world’s known lithium reserves, the world’s largest known concentration, and SQM controls roughly half the country’s production
  • DRC is home to nearly two-thirds of the world’s cobalt production and half of its known reserves. Those resources are the prime target of investors for the booming battery industry. Over a decade of steady engagement, China has staked out a dominant position by developing strong political ties and investing in production assets and related infrastructure
  • China’s SOEs and private firms have made at least eight major equity and off-take plays in platinum-group metals in the Bushveld Complex. Such investments in South Africa’s highly concentrated and strategic resource deposits have helped make metals the country’s leading source of export growth, with nearly 50 percent of its metal exports going to China—tying South Africa’s economic welfare directly to Chinese investment.
  • the three countries where nearly 90 percent of global lithium production and more than three-quarters of the world’s known lithium reserves are located: Chile, Argentina, and Australia. In just six years, China has come to dominate the global market: More than 59 percent of the world’s lithium resources are now under its control or influence
  • China now owns or has influence over half of the DRC’s cobalt production, and has a massive stake in its mining industry. Six months ahead of the presidential elections, the event also sent a strong message to candidates about China’s deep investment in copper and cobalt mining—which constitutes 80 percent of the DRC’s export revenue and thousands of jobs—and its capacity to influence the future of the DRC’s economy
  • Though the final agreement included restrictions on Tianqi’s board and committee participation and its access to SQM’s sensitive data, Tianqi’s equity position still confers considerable influence over SQM.
  • In a cash-strapped industry, Chinese firms are financing mine expansion and new development in exchange for a guaranteed supply of lithium in both mature and emerging markets. In Argentina, where President Mauricio Macri is eliminating mineral export taxes, reducing corporate tax rates, and allowing profit repatriation, China is establishing a dominant position in the nascent sector with “streaming deals,” which provide development capital in exchange for future lithium yields to help projects get off the ground. Chinese firms, led by Ganfeng, have stakes in 41 percent of the country’s major planned projects that account for 37 percent of Argentina’s reserves. This raw-material strategy is already coming to fruition: Lithium export volumes from Argentina to China rose nearly fourfold from 2015 to 2017, and China has secured access to the country's lithium for the longer term.
  • This same strategy, combined with asset acquisition, has also been successful in Australia, whose proximity to China, significant lithium reserves, and broad political support for mining investment have attracted Chinese investment. Tianqi and Ganfeng have established stakes in 91 percent of the lithium mining projects underway and 75 percent of the country’s reserves, including some of the world’s largest.
  • Natural resources are abundant in China; it is the No. 1 producer and processor of at least ten critical minerals and metals that are essential to high-tech industries and upon which China’s commercial and strategic competitors depend. To reinforce its strength, Chinese firms are acquiring mines and output from the next-largest producers and reserves, giving China both an economic edge in the next high-tech industrial revolution and increasing geopolitical power.
  • Perhaps the best-known example both of China’s natural-resource dominance and its willingness to exploit it is rare-earth elements, a group of 17 elements that (despite their name) are commonly found, but rarely in concentrations that can be economically extracted. They are important materials for the defense, aerospace, electronics, and renewable energy industries. Over the past two decades China has produced more than 80 percent of the world’s production of rare-earth elements and processed chemicals. In 2010 it cut off exports to Japan amid rising tensions over the East China Sea, and the following year it imposed export quotas that threw governments and manufacturers into a panic. But with the exception of Japan, the attention to this critical vulnerability was short-lived, and little action was taken by other countries reliant on imports to diversify their resources or develop minerals action plans of their own.
  • China declared rare-earth elements a strategic resource in 1990 and prohibited foreign investment in the sector. Six state-owned enterprises control the industry, and the government cut production quotas in 2018 by 36 percent. With global demand for rare-earth elements projected at a compound average growth rate of more than 17 percent to 2025, a supply crunch is likely approaching—and China is already securing other nations’ supplies
  • While Russia strictly limits foreign participation in rare-earth element development, Chinese firms have accumulated off-take agreements and stakes in rare-earth element mines in Australia and Brazil
  • in 2017, China’s Shenghe Resources and two U.S. private equity firms acquired the sole U.S. and North American rare-earth element producer and processor, Molycorp, and its idled mining operations at Mountain Pass, California.
  • In 2016, China’s Yellow Dragon Holdings Ltd. co-invested with Bushveld Minerals, the primary vanadium developer in South Africa’s massive Bushveld Complex, to acquire Strategic Minerals, which owned the Vametco vanadium mine and plant. Yellow Dragon subsequently increased its investment in Bushveld Minerals and has become the fifth-largest shareholder. The holdings deepen China’s influence over South Africa’s vanadium resources and its role in the country’s emerging high-tech sector
  • China’s position is even stronger in graphite, a crystalline form of the element carbon whose high conductivity makes it a major component in electrodes, batteries, and solar panels, as well as industrial products such as steel and composites. For the last 20 years, China has been the leading global supplier of graphite, representing nearly 70 percent of the world’s production in 2018 and 24 percent of its reserves. While synthetic graphite, which is produced from petroleum coke, is an alternative, unfavorable economics constrain its use
  • New projects are concentrated in Mozambique, where the world’s largest graphite mine and fourth-largest known reserves are located. Already, Chinese firms have secured off-take agreements with the three major developers in Mozambique for the majority of their graphite production, and they are financing new development.
  • Japan is 90 percent reliant on China for its graphite
  • This resource consolidation could determine whether China is able to overcome the last major hurdle to achieving its ambitions: a competitive semiconductor industry.
  • Semiconductors can be pure elements or compounds and altered with impurities to improve their conductivity. Several materials are now being used to improve speed and performance, including rare-earth elements, graphite, indium, gallium, tantalum, and cadmium. China is the dominant producer of five out of the six, controls more than 75 percent of the world’s supply of three, and is consolidating control over them all
  • Should China succeed technologically, its capacity to scale production and flood markets (as it has already done with solar panels and wind turbines) has serious implications not only for leading semiconductor producers, but also for national security, if Chinese-manufactured chips are embedded in the devices upon which our data-driven lives, our economies, and our defense systems increasingly depend. While government and industry officials have started to restrict semiconductor sales and scrutinize Chinese acquisition of technology firms—e.g., the United States’ temporary ban on selling semiconductors to ZTE, or the recent flare-up over Huawei —such moves are strengthening China’s resolve to develop its domestic industry. More attention should be paid to its efforts to consolidate critical raw materials and the computing power they confer.
  • In April, U.S. government officials announced plans to meet with lithium industry leaders and automakers with the intention of developing a national electric-vehicle supply chain strategy. It is a start.
Ed Webb

Coronavirus and food supply: Visa bottleneck raises labor concerns - Los Angeles Times - 0 views

  • California’s nearly $50-billion agricultural industry is bracing for a potential labor shortfall that could hinder efforts to maintain the nation’s fresh food supply amid the widening coronavirus outbreak.The immediate concern centers on a backlog in the recruitment of foreign guest workers because of the virus-related shutdown of consul offices processing agricultural H2-A visas in Mexico.
  • fears highlight a gap in the Trump administration’s market-centered approach to keeping vital industries running, which includes numerous measures aimed at supporting aid, credit and the major commodity crops in the nation’s heartland. There has been little done to address the labor-intensive fresh food crops that form the backbone of California agriculture.
  • Assurance from USDA and State were not enough to satisfy growers, shippers and contractors in California, who have been pressing for more clear answers as the scope of the pandemic comes into focus. The state has faced years of labor shortages caused by the aging of the local workforce, immigration crackdowns, improvements in job prospects in Mexico and other factors.“We don’t have enough H-2A workers coming across in normal times,”
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  • “A halt or a drastic slowdown in processing visas will have an immediate domino effect of the domestic food supply of this country,” said David Scaroni, vice president of Fresh Harvest, the country’s largest private contractor of H-2A workers. “No emergency declaration or short term provision will change this fact.”
  • “We believe because of what’s planted and what’s going to be harvested that we can meet the demand and maintain the continuity of the food supply,” Valadez said. “The question is the labor equation. The crops are going to be there. But what are we going to be able to do to get the crops out of the ground?”
  • labor contracting surges dramatically as produce shifts from the winter desert regions of California and Arizona and gets underway along the central coast. That region hosts the bulk of the state’s strawberry production and much of its spring and summer leafy greens, broccoli and cauliflower, among other crops.
  • deep, short-term dependency within crops and harvest areas
  • Any shortfall or slowdown, however, would have a cascade effect across production, harvest, processing and distribution within weeks, Scaroni said. “Plants already in the ground do not know that there is a pandemic occurring. It is crucial to keep this process going as close to the prior normal to ensure a stable food supply for the coming months.”
  • There is no evidence that contact with produce is contributing to the spread of coronavirus, federal health and safety agencies have said.
  • “Historically, farmworkers are so used to not having healthcare they just put up with being sick,” said Armando Elenes, secretary-treasurer of the United Farm Workers. “They’re going to go to work, and on the way to work, they’ll be in a car with four, five or six workers. So ‘social distancing’? Forget that.”
  • An agriculture industry source said operations dependent on food-service clients could suffer irreparable economic harm. The inability of the retail side to absorb the unused supply could leave a paradox of empty bins in grocery stores while food rots in the fields.
  • Rabobank Research predicts that effects of the pandemic will last several months. It already has affected parts of the food economy few think about, such as the boxes it’s packed in — cardboard production largely halted in China in January and February, driving up prices.
  • Wholesalers report that unusually heavy rains have created an “extreme” market for many produce items, including carrots, peppers, squash, potatoes and cauliflower. California’s citrus industry has had to slow or pause harvest during the prolonged rains of the last week, according to California Citrus Mutual. The industry had hoped to overcome most of the supply imbalances as it shifted production north and into additional states. Then the pandemic hit.
Ed Webb

How Different-and Dangerous-Is Terrorism Today? | The New Yorker - 0 views

  • terrorism is now a standard feature of asymmetric warfare, with fewer wars pitting states against each other and more of the combatants being non-state actors with less traditional forms of weaponry
  • professional or experienced terrorists are being supplemented by a proliferating array of amateurs
  • “There may have been, in aggregate, more terrorism in the seventies and eighties, but it was discriminate,” he said. “They kept their terrorism within boundaries related to their cause. Today it’s different. It’s less predictable, less coherent and less cohesive. It leaves the impression of serendipity. ISIS posts pictures of a vehicle and says get in your car and drive into people—and that’s all it takes.”
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  • while the absolute number of attacks is down, the lethality of terrorism has risen sharply in the past two years
  • Today’s third generation is engaged in plots that are simpler yet more widespread than the 9/11 attacks by Al Qaeda, Watts told me. “They’re not as sophisticated as in the Al Qaeda era, when complex operations were well coördinated and carried out by a few designated men. Now, some are not even trained or formally recruited. They’re self-empowered.” As a result, killing people on a bridge may not have the same impact or symbolic emphasis as an attack on a U.S. Embassy or the World Trade Center. But the reaction can be just as profound.
  • “The West can do things on the margins to be safer,” Berger said, but it still faces another “five or ten years of potentially dangerous situations. There’s not any silver bullet that will reduce the occurrence of these events in the short term. We need to be thinking about resilience—and how we’re going to assimilate events when they happen.”
  •  
    Wright is well-informed on foreign affairs, security, and terrorism.
Ed Webb

Russian Mercenaries in Great-Power Competition: Strategic Supermen or Weak Link? | RAND - 0 views

  • Russia's worst-kept secret is its increasingly heavy reliance on private security contractors—really, mercenaries—to maintain a Russia-favorable global status quo and to undermine its competitors' interests. This reliance on mercenaries stems from a known capability gap
  • The employment of private forces within the spectrum of both domestic and interstate rivalry has been more norm than anomaly throughout most of recorded history.
  • Even a strong de facto dictator like Vladimir Putin cannot deploy one-year conscripts beyond Russia's borders without incurring significant political risk
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  • Unlike the Soviet Union, Russia is not a global ground combat power.
  • Russia has employed heavily armed mercenaries from the notorious Wagner Group and a range of other (PDF) government-cozy (and perhaps government-run) companies as the tip of the Russian foreign policy spear. In effect, Russia has outsourced its foreign policy in Libya, Syria, the Central African Republic, Madagascar, Mozambique, Sudan, Ukraine, Yemen, Burundi, and other global hot spots.
  • Dmitry Utkin, former commander of the Russian military intelligence directorate's (GRU's) Spetsnaz special forces units, allegedly founded the Wagner Group in 2014. Wagner and an elite GRU Spetsnaz unit reportedly share a military base in the Russian town of Molkino.
  • RAND's work on will to fight—the disposition and decision to fight, act, or persevere in conflict and war—and on Russian state power suggests that Russia is using mercenaries due in great part to its inherent military and civil weaknesses. Russian mercenaries (in fact, all mercenaries) also have behavioral limitations and vulnerabilities to influence. Dependence on mercenaries also reflects a vulnerability in Russian national will to fight. Both of these weaknesses can be exploited.
  • Mercenary soldiers with the Wagner Group (formerly Moran Security Group, and then Slavonic Corps Limited) and other Russian mercenary groups like Patriot, took the lead in some of the more dangerous frontline operations in Syria while uniformed Russian soldiers guarded air and naval bases along Syria's coastline
  • Russia's military has strictly limited ability to project ground power worldwide. It has almost no organic ability to project and sustain ground power more than a few hundred kilometers beyond its own borders. Russian strategic lift is anemic compared to Soviet-era lift. Available forces are often tied down in one of the many frozen conflicts that ring Russia's western and southern borders.
  • In February 2018, Russian-hired mercenaries led (or at least closely accompanied) a Syrian militia force armed with artillery and heavy tanks to seize an oilfield near the city of Deir az-Zour in northeastern Syria. American Special Operations Forces and Marines decimated them with hours of precision air attacks, killing perhaps (PDF) hundreds and causing the rest of the force—including the mercenaries—to flee. As Russian-hired mercenary personnel retreated from the battlefield at Deir az-Zour, other teams of Russian private military actors had to call in helicopter teams to evacuate the wounded from the battlefield in the absence of state support.
  • Russian mercenaries have also performed poorly in Africa. In Mozambique, Wagner mercenaries stumbled through the kinds of partner-building efforts at which U.S. special operations forces tend to excel. They offended the locals and reportedly double-crossed allies to make money. Islamic State insurgents have successfully attacked and killed them on poorly secured roads. Mercenary disinformation tactics in Mozambique backfired. What was billed as a Russian power play in a former Soviet client state looks like a disaster in the making.
  • Wagner sent hundreds of trainers and security personnel to the Central African Republic to help Russian commercial interests secure mining rights and to support a complex regional diplomatic push to increase Russian influence. There has been little pretense in this operation: It is primarily a money-making venture. In one case, Wagner mercenaries reportedly helped the rebels they were hired to fight in order to help a Russian mining company gain access to diamond mines. Wagner has been linked to the suspicious deaths of three journalists who were nosing around its CAR operations. This Russian mercenary-led deployment has been partially successful in countering French influence, but it is not clear that reported successes on the ground outweigh the lasting, negative consequences of Wagner's cutthroat behavior.
  • Russia sent mercenaries and probably some active military forces to support Khalifa Haftar's anti-government forces in Libya. In early 2020, 1,000 Wagner mercenaries reportedly fled the front lines between pro- and anti-government forces after suffering a resounding defeat. Combat losses for Wagner in Libya are unknown but possibly significant.
  • as individuals and as a group, Russian mercenaries have repeatedly shown that they will pursue self-interest and commercial interests over state interests, and that they will quickly abandon partner forces—and perhaps each other—when the tactical risks fail to outweigh the financial rewards.
  • There is no shortage of genuine tough guys in groups like Wagner and Patriot. Under the will to fight factor of quality, many Russian mercenaries would earn high marks for fitness and resilience. But outright toughness and even elite military training alone cannot sustain the will to fight of an individual primarily motivated by money.
  • Together, the weaknesses within Russian mercenary forces and within the Russian state in relation to press-ganged youths, conscripts, and casualties may offer ready opportunities for exploitation in great-power competition. These broader weaknesses in Russian national will to fight could be examined to identify more ways to prevent Russia from aggressively undermining Western democracy.
Ed Webb

The rush to 'go electric' comes with a hidden cost: destructive lithium mining | Thea R... - 0 views

  • In order to stave off the worst of the accelerating climate crisis, we need to rapidly reduce carbon emissions. To do so, energy systems around the world must transition from fossil fuels to renewable energy. Lithium batteries play a key role in this transition: they power electric vehicles and store energy on renewable grids, helping to cut emissions from transportation and energy sectors. Underneath the Atacama salt flat lies most of the world’s lithium reserves; Chile currently supplies almost a quarter of the global market. But extracting lithium from this unique landscape comes at a grave environmental and social cost.
  • The entire process uses enormous quantities of water in an already parched environment. As a result, freshwater is less accessible to the 18 indigenous Atacameño communities that live on the flat’s perimeter, and the habitats of species such as Andean flamingoes have been disrupted.
  • does fighting the climate crisis mean sacrificing communities and ecosystems?
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  • we are on the verge of a global boom in mining linked to the energy transition
  • by 2040, the IEA forecasts that demand for lithium will have increased 42 times relative to 2020 levels
  • In the US and Europe, policymakers increasingly talk about a “race” to secure the minerals linked to energy transition and shore up domestic supplies; the idea of a “new cold war” with China is frequently invoked
  • natural resource sectors, which include extractive activities like mining, are responsible for 90% of biodiversity loss and more than half of carbon emissions. One report estimates that the mining sector produces 100bn tons of waste every year. Extraction and processing are typically water- and energy-intensive, and contaminate waterways and soil. Alongside these dramatic changes to the natural environment, mining is linked to human rights abuses, respiratory ailments, dispossession of indigenous territory and labour exploitation. Once the minerals are wrested from the ground, mining companies tend to accumulate profits and leave behind poverty and contamination. These profits only multiply along the vast supply chains that produce electric vehicles and solar panels. Access to these technologies is highly unequal, and the communities who suffer the harms of extraction are frequently denied its benefits.
  • battles between competing visions of a low-carbon world are intensifying – and they will become increasingly central to politics across the world
  • there are multiple paths to rapid decarbonisation
  • A transportation system based on individual electric vehicles, for example, with landscapes dominated by highways and suburban sprawl, is much more resource- and energy-intensive than one that favours mass transit and alternatives such as walking and cycling
  • Chilean activists are clear: there is no zero-sum conflict between fighting climate breakdown and preserving local environments and livelihoods. Indigenous communities in the Atacama desert are also on the frontlines of the devastating impacts of global heating. Rather than an excuse to intensify mining, the accelerating climate crisis should be an impetus to transform the rapacious and environmentally harmful patterns of production and consumption that caused this crisis in the first place
Ed Webb

African countries not ready to implement free trade from January | Financial Times - 0 views

  • Fifty four African nations have committed to join AfCFTA but of the 33 countries to have ratified the agreement so far many lack the customs procedures and infrastructure to facilitate tariff-free trade, said Wamkele Mene, secretary-general of the AfCFTA secretariat.
  • “If you don’t have the roads, if you don’t have the right equipment for customs authorities at the border to facilitate the fast and efficient transit of goods . . . if you don’t have the infrastructure, both hard and soft, it reduces the meaningfulness of this agreement.”
  • In 2019, 14.4 per cent of official African exports went to other African countries, a small proportion compared with the 52 per cent in intra-Asian trade and 73 per cent between European nations in the same year
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  • “We want to move Africa away from this colonial economic model of perpetually being an exporter of primary commodities for processing elsewhere,”
  • goods traded within Africa were more processed than the raw materials exported from the continent to China, India, Europe and other major trading partners
  • “Policymakers have understood that, although trade on the continent is limited, this is value-added trade,” he said. “This is where the jobs are coming from, as opposed to trade with the rest of the world, which is mostly commodities.”
  • Jeffrey Peprah, chief executive of Volkswagen, Ghana, said he hoped eventually to export cars assembled in Accra to other west African countries.
  • For the agreement to work, one western diplomat said the free trade zone must benefit producers in smaller, poorer countries as well as those in more industrialised parts of the continent. Many countries saw the free trade area as a way of boosting their exports but few had embraced the corollary that they would need to import more, the diplomat said.
Ed Webb

How Japan Increased Immigration Without Stoking Xenophobia - 0 views

  • even as immigration grows in this traditionally homogenous country, Japan appears to be avoiding the organized far-right backlash that has coursed through the West in recent years
  • In Europe and the United States, immigration and national identity seemingly consume all politics; in Japan, despite its reputation as closed-off, homogenous, and xenophobic, a large increase in immigration has mostly been met with a shrug. While anti-immigrant sentiments are widespread, they do not run very deep, or so suggests the lack of substantial opposition
  • In April 2019, Tokyo implemented historic immigration reform, expanding visa programs to allow more than 345,000 new workers to immigrate to Japan over the subsequent five years. Low-skilled workers will be able to reside in Japan for five years, while foreign workers with specialized skills will be allowed to stay indefinitely, along with their family members—suggesting that many of these workers might stay for good
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  • This growth in immigration, in turn, is changing the image of Japan from ethnically homogenous to moderately diverse. Among Tokyo residents in their 20s, 1 in 10 is now foreign-born. And Tokyo is no longer an outlier. Much of the migration is happening in small industrial towns around the country, such as Shimukappu in central Hokkaido and Oizumi in Gunma prefecture, where migrant populations make up more than 15 percent of the local population. In the mostly rural Mie prefecture, east of Osaka and Kyoto, foreign migration has reversed years of population loss.
  • Conservative Prime Minister Shinzo Abe has based his support for the changing immigration policy not on any humanitarian concerns but rather on pragmatic, demographic arguments. By 2050, the world population is expected to increase by 2 billion people, according to the United Nations, but Japan’s population is expected to shrink by at least 20 million. Meanwhile, the fertility rate in Japan has fallen to 1.4 children per woman, while 28 percent of the country is over 65 years old. This means that the country’s population has been dropping by around 400,000 people a year
  • With unemployment consistently below 3 percent in recent years, even after the pandemic, employers are increasingly raising alarms about labor shortages. Last year, for the first time in Japan’s history, there were more jobs available than the number of job seekers in all of Japan’s 47 prefectures. In a country long known for its restrictive borders, immigration is now seen as the most obvious solution to that demographic challenge.
  • Japan has developed a unique program of customized immigration, based on specific requests for workers from various countries
  • Japan custom-orders a labor force in the 14 sectors where they are most urgently needed, including nurses and care workers, shipbuilders, farm workers, car mechanics, and workers in the fishing and construction industries
  • given that latest bill allows an easier pathway for skilled foreign workers to apply for permanent residency and, eventually, Japanese citizenship—it may do more than simply sustain society. “More workers will try to stay here permanently,” Oguma said. “So even if the bill is not meant to change Japan, it certainly has the potential to change Japanese society in the long term.”
  • most of Japanese society supports the changing immigration policy. In a recent survey by Nikkei, almost 70 percent of Japanese said it is “good” to see more foreigners in the country. “The nationalist, anti-immigrant groups here only make up perhaps 1-2 percent of voters. It’s not like Europe. And they have not raised their voices about this so far,”
  • bilateral agreements Japan has drafted with countries such as Indonesia and the Philippines, which will allow them to send tens of thousands of care workers to Japan annually. Both countries see this as a win-win proposition. Japan gets much-needed labor, the Philippines gets an increase in foreign remittances, and many workers will eventually return, having learned new valuable skills
  • opposition has largely come from Abe’s left, over concerns about a lack of regulation on employers, which they fear could lead to exploitation. Many foreign workers are already forced to work overtime, receive less pay, and risk having their passports and travel documents confiscated by employers
  • some factories in the mostly rural Gifu prefecture have implemented segregated bathrooms and locker rooms for domestic and foreign workers
  • This dynamic was common in the immigration debate in Europe and the United States in the 1980s and ’90s, when pro-business conservatives often pushed for more immigrants and guest workers, while labor unions raised concerns for workers’ rights and downward pressure on wages.
  • The widespread xenophobia in Japan is hardly a myth. In 2010, the U.N.’s human rights experts called out Japan for racism, discrimination, and exploitation of migrant workers. Increased immigration has not changed the country’s notoriously strict asylum policies. In 2018, only 42 asylum-seekers were approved, out of around 10,000 applicants.
  • he said he prefers the casual xenophobia of Japan to the structural racism of America
  • Sooner or later, Japan may face nationwide debate on what it means to be Japanese in the 21st century. Few countries undergoing demographic shifts are able to avoid these challenges.
  • When South Korea accepted 500 Yemeni refugees in 2018, it created storms of protests, with street rallies demanding that the Yemenis be sent back, calling them “fake refugees.”
  • In early June, thousands of people participated in Black Lives Matter protests in Tokyo, which has contributed to a nationwide debate on harassment of migrants and foreigners—as well as race.
  • “Xenophobic nationalists are generally irrelevant in politics. If there is a backlash, it will most likely begin as a local uprising against Tokyo, a populist revolt against the central government, just as in the EU,” Oguma said. “But I don’t see it happening right now. The far-right here is too atomized, each faction want different things. So I don’t really worry about an organized uprising.”
  • With massive stimulus spending and a robust, universal health care system, Japan has weathered the pandemic fairly well. Unemployment in April was 2.5 percent. While there has been some anecdotal evidence of increased racist harassment of foreign workers, coupled with an emerging skepticism toward globalization and migration, Japan at the moment is one of the few countries where resentment against immigrants is not the defining feature of politics.
Ed Webb

Where Will Everyone Go? - 0 views

  • The odd weather phenomenon that many blame for the suffering here — the drought and sudden storm pattern known as El Niño — is expected to become more frequent as the planet warms. Many semiarid parts of Guatemala will soon be more like a desert. Rainfall is expected to decrease by 60% in some parts of the country, and the amount of water replenishing streams and keeping soil moist will drop by as much as 83%. Researchers project that by 2070, yields of some staple crops in the state where Jorge lives will decline by nearly a third.
  • As their land fails them, hundreds of millions of people from Central America to Sudan to the Mekong Delta will be forced to choose between flight or death. The result will almost certainly be the greatest wave of global migration the world has seen.
  • For most of human history, people have lived within a surprisingly narrow range of temperatures, in the places where the climate supported abundant food production. But as the planet warms, that band is suddenly shifting north.
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  • the planet could see a greater temperature increase in the next 50 years than it did in the last 6,000 years combined. By 2070, the kind of extremely hot zones, like in the Sahara, that now cover less than 1% of the earth’s land surface could cover nearly a fifth of the land, potentially placing 1 of every 3 people alive outside the climate niche where humans have thrived for thousands of years. Many will dig in, suffering through heat, hunger and political chaos, but others will be forced to move on
  • In Southeast Asia, where increasingly unpredictable monsoon rainfall and drought have made farming more difficult, the World Bank points to more than 8 million people who have moved toward the Middle East, Europe and North America. In the African Sahel, millions of rural people have been streaming toward the coasts and the cities amid drought and widespread crop failures. Should the flight away from hot climates reach the scale that current research suggests is likely, it will amount to a vast remapping of the world’s populations.
  • Drought helped push many Syrians into cities before the war, worsening tensions and leading to rising discontent; crop losses led to unemployment that stoked Arab Spring uprisings in Egypt and Libya; Brexit, even, was arguably a ripple effect of the influx of migrants brought to Europe by the wars that followed. And all those effects were bound up with the movement of just 2 million people. As the mechanisms of climate migration have come into sharper focus — food scarcity, water scarcity and heat — the latent potential for large-scale movement comes to seem astronomically larger.
  • Northern nations can relieve pressures on the fastest-warming countries by allowing more migrants to move north across their borders, or they can seal themselves off, trapping hundreds of millions of people in places that are increasingly unlivable. The best outcome requires not only goodwill and the careful management of turbulent political forces; without preparation and planning, the sweeping scale of change could prove wildly destabilizing. The United Nations and others warn that in the worst case, the governments of the nations most affected by climate change could topple as whole regions devolve into war
  • To better understand the forces and scale of climate migration over a broader area, The New York Times Magazine and ProPublica joined with the Pulitzer Center in an effort to model, for the first time, how people will move across borders
  • Our model projects that migration will rise every year regardless of climate, but that the amount of migration increases substantially as the climate changes. In the most extreme climate scenarios, more than 30 million migrants would head toward the U.S. border over the course of the next 30 years
  • If governments take modest action to reduce climate emissions, about 680,000 climate migrants might move from Central America and Mexico to the United States between now and 2050. If emissions continue unabated, leading to more extreme warming, that number jumps to more than a million people. (None of these figures include undocumented immigrants, whose numbers could be twice as high.)
  • As with much modeling work, the point here is not to provide concrete numerical predictions so much as it is to provide glimpses into possible futures. Human movement is notoriously hard to model, and as many climate researchers have noted, it is important not to add a false precision to the political battles that inevitably surround any discussion of migration. But our model offers something far more potentially valuable to policymakers: a detailed look at the staggering human suffering that will be inflicted if countries shut their doors.
  • the coronavirus pandemic has offered a test run on whether humanity has the capacity to avert a predictable — and predicted — catastrophe. Some countries have fared better. But the United States has failed. The climate crisis will test the developed world again, on a larger scale, with higher stakes
  • Climate is rarely the main cause of migration, the studies have generally found, but it is almost always an exacerbating one.
  • In the case of Addis Ababa, the World Bank suggests that in the second half of the century, many of the people who fled there will be forced to move again, leaving that city as local agriculture around it dries up.
  • North Africa’s Sahel provides an example. In the nine countries stretching across the continent from Mauritania to Sudan, extraordinary population growth and steep environmental decline are on a collision course. Past droughts, most likely caused by climate change, have already killed more than 100,000 people there. And the region — with more than 150 million people and growing — is threatened by rapid desertification, even more severe water shortages and deforestation. Today researchers at the United Nations estimate that some 65% of farmable lands have already been degraded. “My deep fear,” said Solomon Hsiang, a climate researcher and economist at the University of California, Berkeley, is that Africa’s transition into a post-climate-change civilization “leads to a constant outpouring of people.”
  • The story is similar in South Asia, where nearly one-fourth of the global population lives. The World Bank projects that the region will soon have the highest prevalence of food insecurity in the world. While some 8.5 million people have fled already — resettling mostly in the Persian Gulf — 17 million to 36 million more people may soon be uprooted, the World Bank found. If past patterns are a measure, many will settle in India’s Ganges Valley; by the end of the century, heat waves and humidity will become so extreme there that people without air conditioning will simply die.
  • We are now learning that climate scientists have been underestimating the future displacement from rising tides by a factor of three, with the likely toll being some 150 million globally. New projections show high tides subsuming much of Vietnam by 2050 — including most of the Mekong Delta, now home to 18 million people — as well as parts of China and Thailand, most of southern Iraq and nearly all of the Nile Delta, Egypt’s breadbasket. Many coastal regions of the United States are also at risk.
  • rough predictions have emerged about the scale of total global climate migration — they range from 50 million to 300 million people displaced — but the global data is limited, and uncertainty remained about how to apply patterns of behavior to specific people in specific places.
  • Once the model was built and layered with both approaches — econometric and gravity — we looked at how people moved as global carbon concentrations increased in five different scenarios, which imagine various combinations of growth, trade and border control, among other factors. (These scenarios have become standard among climate scientists and economists in modeling different pathways of global socioeconomic development.)
  • every one of the scenarios it produces points to a future in which climate change, currently a subtle disrupting influence, becomes a source of major disruption, increasingly driving the displacement of vast populations.
  • Around 2012, a coffee blight worsened by climate change virtually wiped out El Salvador’s crop, slashing harvests by 70%. Then drought and unpredictable storms led to what a U.N.-affiliated food-security organization describes as “a progressive deterioration” of Salvadorans’ livelihoods.
  • climate change can act as what Defense Department officials sometimes refer to as a “threat multiplier.”
  • For all the ways in which human migration is hard to predict, one trend is clear: Around the world, as people run short of food and abandon farms, they gravitate toward cities, which quickly grow overcrowded. It’s in these cities, where waves of new people stretch infrastructure, resources and services to their limits, that migration researchers warn that the most severe strains on society will unfold
  • the World Bank has raised concerns about the mind-boggling influx of people into East African cities like Addis Ababa, in Ethiopia, where the population has doubled since 2000 and is expected to nearly double again by 2035
  • now a little more than half of the planet’s population lives in urban areas, but by the middle of the century, the World Bank estimates, 67% will. In just a decade, 4 out of every 10 urban residents — 2 billion people around the world — will live in slums
  • Migration can bring great opportunity not just to migrants but also to the places they go
  • High emissions, with few global policy changes and relatively open borders, will drive rural El Salvador — just like rural Guatemala — to empty out, even as its cities grow. Should the United States and other wealthy countries change the trajectory of global policy, though — by, say, investing in climate mitigation efforts at home but also hardening their borders — they would trigger a complex cascade of repercussions farther south, according to the model. Central American and Mexican cities continue to grow, albeit less quickly, but their overall wealth and development slows drastically, most likely concentrating poverty further. Far more people also remain in the countryside for lack of opportunity, becoming trapped and more desperate than ever.
  • By midcentury, the U.N. estimates that El Salvador — which has 6.4 million people and is the most densely populated country in Central America — will be 86% urban
  • Most would-be migrants don’t want to move away from home. Instead, they’ll make incremental adjustments to minimize change, first moving to a larger town or a city. It’s only when those places fail them that they tend to cross borders, taking on ever riskier journeys, in what researchers call “stepwise migration.” Leaving a village for the city is hard enough, but crossing into a foreign land — vulnerable to both its politics and its own social turmoil — is an entirely different trial.
  • I arrived in Tapachula five weeks after the breakout to find a city cracking in the crucible of migration. Just months earlier, passing migrants on Mexico’s southern border were offered rides and tortas and medicine from a sympathetic Mexican public. Now migrant families were being hunted down in the countryside by armed national-guard units, as if they were enemy soldiers.
  • Models can’t say much about the cultural strain that might result from a climate influx; there is no data on anger or prejudice. What they do say is that over the next two decades, if climate emissions continue as they are, the population in southern Mexico will grow sharply. At the same time, Mexico has its own serious climate concerns and will most likely see its own climate exodus. One in 6 Mexicans now rely on farming for their livelihood, and close to half the population lives in poverty. Studies estimate that with climate change, water availability per capita could decrease by as much as 88% in places, and crop yields in coastal regions may drop by a third. If that change does indeed push out a wave of Mexican migrants, many of them will most likely come from Chiapas.
  • even as 1 million or so climate migrants make it to the U.S. border, many more Central Americans will become trapped in protracted transit, unable to move forward or backward in their journey, remaining in southern Mexico and making its current stresses far worse.
  • Already, by late last year, the Mexican government’s ill-planned policies had begun to unravel into something more insidious: rising resentment and hate. Now that the coronavirus pandemic has effectively sealed borders, those sentiments risk bubbling over. Migrants, with nowhere to go and no shelters able to take them in, roam the streets, unable to socially distance and lacking even basic sanitation. It has angered many Mexican citizens, who have begun to describe the migrants as economic parasites and question foreign aid aimed at helping people cope with the drought in places where Jorge A. and Cortez come from.
  • a new Mexico-first movement, organizing thousands to march against immigrants
  • Trump had, as another senior government official told me, “held a gun to Mexico’s head,” demanding a crackdown at the Guatemalan border under threat of a 25% tariff on trade. Such a tax could break the back of Mexico’s economy overnight, and so López Obrador’s government immediately agreed to dispatch a new militarized force to the border.
  • laying blame at the feet of neoliberal economics, which he said had produced a “poverty factory” with no regional development policies to address it. It was the system — capitalism itself — that had abandoned human beings, not Mexico’s leaders. “We didn’t anticipate that the globalization of the economy, the globalization of the law … would have such a devastating effect,”
  • No policy, though, would be able to stop the forces — climate, increasingly, among them — that are pushing migrants from the south to breach Mexico’s borders, legally or illegally. So what happens when still more people — many millions more — float across the Suchiate River and land in Chiapas? Our model suggests that this is what is coming — that between now and 2050, nearly 9 million migrants will head for Mexico’s southern border, more than 300,000 of them because of climate change alone.
  • “If we are going to die anyway,” he said, “we might as well die trying to get to the United States.”
  • The world can now expect that with every degree of temperature increase, roughly a billion people will be pushed outside the zone in which humans have lived for thousands of years
  • Without a decent plan for housing, feeding and employing a growing number of climate refugees, cities on the receiving end of migration can never confidently pilot their own economic future.
  • The United States refused to join 164 other countries in signing a global migration treaty in 2018, the first such agreement to recognize climate as a cause of future displacement. At the same time, the U.S. is cutting off foreign aid — money for everything from water infrastructure to greenhouse agriculture — that has been proved to help starving families like Jorge A.’s in Guatemala produce food, and ultimately stay in their homes. Even those migrants who legally make their way into El Paso have been turned back, relegated to cramped and dangerous shelters in Juárez to wait for the hearings they are owed under law.
  • There is no more natural and fundamental adaptation to a changing climate than to migrate. It is the obvious progression the earliest Homo sapiens pursued out of Africa, and the same one the Mayans tried 1,200 years ago. As Lorenzo Guadagno at the U.N.’s International Organization for Migration told me recently, “Mobility is resilience.” Every policy choice that allows people the flexibility to decide for themselves where they live helps make them safer.
  • what may be the worst-case scenario: one in which America and the rest of the developed world refuse to welcome migrants but also fail to help them at home. As our model demonstrated, closing borders while stinting on development creates a somewhat counterintuitive population surge even as temperatures rise, trapping more and more people in places that are increasingly unsuited to human life
  • the global trend toward building walls could have a profound and lethal effect. Researchers suggest that the annual death toll, globally, from heat alone will eventually rise by 1.5 million. But in this scenario, untold more will also die from starvation, or in the conflicts that arise over tensions that food and water insecurity will bring
  • America’s demographic decline suggests that more immigrants would play a productive role here, but the nation would have to be willing to invest in preparing for that influx of people so that the population growth alone doesn’t overwhelm the places they move to, deepening divisions and exacerbating inequalities.
  • At the same time, the United States and other wealthy countries can help vulnerable people where they live, by funding development that modernizes agriculture and water infrastructure. A U.N. World Food Program effort to help farmers build irrigated greenhouses in El Salvador, for instance, has drastically reduced crop losses and improved farmers’ incomes. It can’t reverse climate change, but it can buy time.
  • Thus far, the United States has done very little at all. Even as the scientific consensus around climate change and climate migration builds, in some circles the topic has become taboo. This spring, after Proceedings of the National Academy of Sciences published the explosive study estimating that, barring migration, one-third of the planet’s population may eventually live outside the traditional ecological niche for civilization, Marten Scheffer, one of the study’s authors, told me that he was asked to tone down some of his conclusions through the peer-review process and that he felt pushed to “understate” the implications in order to get the research published. The result: Migration is only superficially explored in the paper.
  • Our modeling and the consensus of academics point to the same bottom line: If societies respond aggressively to climate change and migration and increase their resilience to it, food production will be shored up, poverty reduced and international migration slowed — factors that could help the world remain more stable and more peaceful. If leaders take fewer actions against climate change, or more punitive ones against migrants, food insecurity will deepen, as will poverty. Populations will surge, and cross-border movement will be restricted, leading to greater suffering. Whatever actions governments take next — and when they do it — makes a difference.
  • El Paso is also a place with oppressive heat and very little water, another front line in the climate crisis. Temperatures already top 90 degrees here for three months of the year, and by the end of the century it will be that hot one of every two days. The heat, according to researchers at the University of California, Berkeley, will drive deaths that soon outpace those from car crashes or opioid overdoses. Cooling costs — already a third of some residents’ budgets — will get pricier, and warming will drive down economic output by 8%, perhaps making El Paso just as unlivable as the places farther south.
  • “If we don’t develop a different attitude,” he said, “we’re going to be like people in the lifeboat, beating on those that are trying to climb in.”
Ed Webb

The Coronavirus Is Killing Globalization and Empowering Nationalists and Protectionists - 0 views

  • what if the economic disruption has an enduring impact? Could the coronavirus pandemic even be the nail in the coffin for the current era of globalization?
  • The coronavirus crisis has highlighted the downsides of extensive international integration while fanning fears of foreigners and providing legitimacy for national restrictions on global trade and flows of people.
  • the coronavirus crisis is likely to have a lasting impact, especially when it reinforces other trends that are already undermining globalization. It may deal a blow to fragmented international supply chains, reduce the hypermobility of global business travelers, and provide political fodder for nationalists who favor greater protectionism and immigration controls
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  • The cost advantage of producing in China has eroded in recent years as the country has become richer and wages have soared.
  • The extended shutdown of many Chinese factories has pushed exports down 17 percent in the first two months of the year compared with a year earlier, and it has disrupted the production of European cars, iPhones, and other consumer goods.
  • there are still many advantages to producing in China, such as scale and efficient logistics. But the coronavirus crisis could mark a tipping point that prompts many businesses to remodel their supply chains and invest in more resilient and often more local patterns of production
  • businesses may discover that while face-to-face meetings are sometimes necessary, technological alternatives are often just fine
  • there is both an environmental reason and an economic one why business travel may decline
  • the coronavirus crisis has also exposed the hollowness of nativists’ assertions that their anti-immigration and protectionist policies make people safer. Even though the nationalist coalition that runs Lombardy’s provincial government is led by Matteo Salvini’s far-right League party, it has not been successful in protecting the region from the coronavirus. Nor, for all his desire to decouple from China, has Trump been able to prevent the coronavirus from reaching the United States
Ed Webb

It's Time to Put Climate Change at the Center of U.S. Foreign Policy - 1 views

  • If the Iran nuclear deal boosted carbon emissions because the easing of sanctions brought an additional 2 million barrels per day of Iranian oil onto the market, that was a price well worth paying to prevent Iran from acquiring a nuclear weapon
    • Ed Webb
       
      Do you agree, and if so why?
  • climate change obviously needs to be at the center of U.S. energy diplomacy. For example, dialogue with OPEC nations or cooperation on strategic oil stocks to address global supply shocks should include discussion of how to prepare for an uncertain and potentially volatile period of transition away from oil
  • Expanding energy access for the 840 million people who lack access to electricity, the majority of whom live in sub-Saharan Africa, is critical for global health and development, yet support for efforts to achieve this goal must avoid following the carbon-intensive paths of other emerging economies such as India
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  • issues such as securing electricity grids around the world against cyberattacks, since a decarbonized world will depend even more on electrical power as many additional sectors—such as buildings, cars, and trucks—are electrified
  • access to rare earths and other critical minerals such as lithium and cobalt will be even more important as raw materials for batteries, solar panels, and other renewable energy technologies.
  • defense leaders should work with their counterparts in other governments and within international institutions, such in the United Nations Security Council and NATO, to integrate climate change into their security agendas. Defense planning must increasingly consider the impacts of climate change, such as the threats of extreme weather to military installations, the stresses increased disaster assistance may pose to military readiness, and the risks food or water scarcity may pose to security in fragile states
  • From the standpoint of foreign policy, stronger domestic action can also lay the groundwork for cooperation instead of conflict with the European Union, which is planning to impose carbon border tariffs on imports from countries taking inadequate climate actions.
  • foreign policy must go beyond climate and energy diplomacy to make mainstream the consideration of climate change in all foreign-policy decisions. It may not always prevail when weighed against all other national security goals, but it is too important to be ignored.
  • the biggest shift from the current U.S. approach would be to take climate change considerations into the mainstream of all national-security and foreign-policy decision-making
  • Every ton of carbon dioxide contributes to climate change no matter where it is emitted, so an ambitious climate strategy cannot only be domestic—it must put the issue squarely at the center of U.S. foreign policy.
  • given both the urgency and global nature of climate change, the issue cannot be siloed into U.S. State Department or Energy Department offices and spheres of diplomacy. Many aspects of U.S. foreign policy will impact, and be impacted by, climate change. An effective foreign policy requires taking climate change directly into consideration—not just as a problem to resolve, but as an issue that can affect the success and failure of strategies in areas as varied as counterterrorism, migration, international economics, and maritime security.
  • a strategy for stability in Iraq will not be effective unless it considers the impacts of water scarcity and heat waves on the Iraqi people or the loss of Iraq’s oil revenue as climate policy gradually erodes oil demand. Similarly, the United States’ efforts to counter terrorism in North Africa may prove fruitless unless officials also consider climate impacts on desertification that make local populations vulnerable to terrorists’ promises
  • U.S. foreign policy has aimed for many years to rebuild Iraq’s struggling economy by helping the country to boost its oil output, and to address its chronic and politically destabilizing electricity shortages by increasing gas production as well. A climate-centered foreign policy would not only provide assistance to reduce flaring and use that gas within Iraq, but also explore opportunities to attract investment in renewable energy
  • in many cases there may not be a climate-friendly alternative approach. But foreign-policy makers won’t know whether the alternatives exist or not unless they ask the question
  • The National Environmental Policy Act requires that before major federal actions are taken, the relevant agency analyzes the effects on the environment and identifies reasonable alternatives that may mitigate those effects. A similar internal step in the foreign-policy making process—time permitting—would ensure that officials have full information about environmental consequences before they act. Several international financial institutions such as the World Bank have processes, albeit imperfect, to review the environmental impacts of their actions
Ed Webb

In Mexico, Cross-Border Fight Over Water Erupts - The New York Times - 0 views

  • longstanding tensions over water between the United States and Mexico that have recently exploded into violence, pitting Mexican farmers against their own president and the global superpower next door
  • rising temperatures and long droughts have made the shared rivers along the border more valuable than ever, intensifying the stakes for both nations
  • Along the arid border region, water rights are governed by a decades-old treaty that compels the United States and Mexico to share the flows of the Colorado and Rio Grande rivers, with each side sending water to the other. Mexico has fallen far behind on its obligations to the United States and is now facing a deadline to deliver the water this month.
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  • this has been one of the driest years in the last three decades for Chihuahua, the Mexican border state responsible for sending the bulk of the water Mexico owes. Its farmers have rebelled, worried that losing any more water will rob them of a chance for a healthy harvest next year.“These tensions, these tendencies, are already there, and they’re just made so much worse by climate change,” said Christopher Scott, a professor of water resources policy at the University of Arizona. “They are in a fight for their lives, because no water, no agriculture; no agriculture, no rural communities.”
  • Since February, when federal forces first occupied the dam to ensure water deliveries to the United States continued, activists in Chihuahua have burned government buildings, destroyed cars and briefly held a group of politicians hostage. For weeks, they’ve blocked a major railroad used to ferry industrial goods between Mexico and the United States.
  • Mexico’s president, Andrés Manuel López Obrador, who has repeatedly bent to President Trump’s demands on immigration, has vowed that his country will make good on its water obligations to the United States — whether the state of Chihuahua likes it or not.
  • Mr. Velderrain, 42, said he never saw himself as the type of person who would lead hundreds over a hill to overwhelm a group of soldiers protecting a cache of automatic weapons. But there he was in a video posted on Facebook, escorting a Mexican general out of the Boquilla Dam on the day he led the takeover.
  • With the intensity of the drought in Chihuahua this year, Mexico has fallen far behind on its water shipments to the United States. It now has to send more than 50 percent of its average annual water payment in a matter of weeks. The Mexican government insists it will still comply, despite the takeover of the dam, which spans the Conchos River, a major tributary of the Rio Grande. But some Texans have their doubts.
  • The treaty doesn’t punish either side for shirking its duties but, eager to avoid conflict, Mexico is scrambling to find a way to meet its water obligations as the deadline nears. One of the likeliest solutions is that Mexico will hand over a significant amount of the water it owns in reservoirs, normally used by more than a dozen Mexican cities. In exchange, Mexico has asked the United States to lend it drinking water for those cities, if Mexico ends up running out.
  • Mexico’s need for water has grown since the signing of the North American Free Trade Agreement in the 1990s, as more people settled in the country’s dry border region and agricultural production ramped up to satisfy American consumers.
  • “I myself will migrate if I don’t have anywhere to work here.”
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