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Ed Webb

Manufacturing: Up? Down? | FRED Blog - 0 views

fredblog.stlouisfed.org/...manufacturing-up-down

IR economy economics employment unemployment globalization technology industry

shared by Ed Webb on 15 Nov 16 - No Cached
  • Manufacturing output is definitively trending up; that is, the number of things produced in this country has increased over time and is currently increasing. This production is accomplished, however, with fewer and fewer employees. It should be no surprise that an economy becomes increasingly better (quicker, more efficient, etc.) at producing things, thanks to increasing productivity per employee through innovations, for example. Recently, though, manufacturing employment is trending up slightly, while productivity has slowed down (as it has in other sectors).
  • when an industry needs fewer people because it is better at doing something, this is viewed as a gain by economists: Workers who aren’t needed any more can move on to produce something else. Of course, there are costs in the process if displaced workers cannot find new employment right away. The U.S. has a relatively flexible labor market that has generally managed to respond well to such challenges. In the short-term, though, the gains are not shared by everyone. Manufacturing unemployment is particularly high in recessions, as is seen in the graph below. But consider yet another twist: The current unemployment rate for manufacturing is lower than the rate for the general population.
  • Ed Webb on 15 Nov 16
     
    Like the UN and international financial institutions, the Federal Reserve and its counterparts in many other countries make data available online and relatively accessible for analysis.
Ed Webb

Why Factories Leaving China Aren't Going to India - Bloomberg - 0 views

www.bloomberg.com/...ng-china-aren-t-going-to-india

Africa India Pakistan Bangladesh Vietnam China development FDI manufacturing industry opinion

shared by Ed Webb on 26 Oct 19 - No Cached
  • Vietnam seems to be the consensus pick for winner of the U.S.-China trade war, as Chinese and other manufacturers shift production to the cheaper Southeast Asian nation. If there’s a loser, at least in terms of missed opportunities, it may be the countries of South Asia.
  • Faced with rising costs, Chinese manufacturers must decide whether to invest in labor-saving automation technologies or to relocate. Those choosing the latter present an enormous opportunity for less-developed countries, as Chinese companies can help spark industrialization and much-needed economic transformation in their new homes. 
  • The only proven pathway to long-lasting, broad-based prosperity has been to build a manufacturing sector linked to global value chains, which raises productivity levels and creates knock-on jobs across the whole economy
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  • African countries, too, are making manufacturing a top priority. Ethiopia alone has opened nearly a dozen industrial parks in recent years and set up a world-class government agency to attract foreign investment. The World Bank has lauded sub-Saharan Africa as the region with the highest number of reforms each year since 2012.
  • In the last five years, the American Enterprise Institute’s China Global Investment Tracker has recorded 13 large Chinese investment deals in Africa and only nine in South Asia.
  • In the past few years, Bangladesh has fallen to 176 out of 190 countries in the global Ease of Doing Business country rankings. DBL Group, a Bangladeshi company, is investing in a new apparel manufacturing facility that will generate 4,000 jobs -- in Ethiopia.
Ed Webb

U.S. Supply Chain Strategy Needs a Globalization Rethink to Beat China - 0 views

foreignpolicy.com/...y-chains-china-reglobalization

US USA China IR analysis opinion globalization trade pandemics military security industry

shared by Ed Webb on 29 Jul 20 - Cached
  • The capacity to manufacture drugs and active pharmaceutical ingredients has moved from the United States and Europe to developing countries in Asia where costs are lower and environmental regulations more relaxed. According to some widely cited estimates, the United States now imports virtually all of certain common antibiotics and over-the-counter pain medications from China, along with a high percentage of generic drugs used to treat HIV, depression, Alzheimer’s, and other ailments, and many of the active pharmaceutical ingredients used to make other medicines. Constriction of supply chains due to coronavirus-related shutdowns in China, further disruptions in global transportation networks, and a spike in worldwide demand for essential drugs could endanger the health of American citizens.
  • If trade were suspended due to a tense confrontation or an actual armed conflict, the United States might find it difficult, and perhaps impossible, to ramp up and sustain production of arms, munitions, weapons platforms, communications equipment, and other military systems.
  • Even before the current crisis, many companies had begun to diversify production away from China, shifting a portion of their manufacturing capacity to other countries. This movement was driven by the need to avoid U.S. tariffs, but also by longer-term trends, including rising Chinese wages and technological developments that are making it both desirable and cost-effective to shorten some supply chains, bringing producers closer to final consumers.
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  • greater awareness of the potential impact of natural as well as man-made shocks will accelerate tendencies not toward deglobalization but rather toward reglobalization: a reshuffling of supply chains and at least a partial reduction in the concentration of capacity inside China
  • The disruption caused by the pandemic creates an opportunity for U.S. policymakers to reassess and recalibrate their generally laissez-faire approach to globalization.
  • Another reason for attempting to shift existing supply chains and, in particular, for trying to preserve and expand domestic manufacturing capacity is that doing so could help boost the overall productivity, international competitiveness, and long-term growth prospects of the U.S. economy. That, in turn, would generate more of the aggregate resources necessary to sustain a protracted strategic competition with China, while at the same time enhancing the well-being of many American workers.
  • Even if the value-added from the final assembly of consumer goods is relatively small, from a strategic standpoint it would be preferable if the resulting gains accrued to the economies of U.S. friends and allies rather than to China. The physical relocation of some portion of existing supply chains could also help slow China’s efforts to extract sensitive technology through industrial espionage or coerced joint ventures.
  • Even a largely market-driven dispersion of supply chains and a lesser degree of concentration in China should help to reduce risks and increase resilience.
  • To the extent feasible, the United States should seek to source imports of critical goods from a trusted production network of facilities in friendly or allied countries, at least some of them located far from China.
  • During World War II and the opening stages of the Cold War, the federal government used the tax code in a focused fashion, extending the so-called rapid tax amortization privilege to promote expansion in sectors where resource requirement calculations revealed gaps that could stall defense mobilization. In the 1950s, federal agencies also used procurement guarantees to encourage the maintenance of capacity above anticipated market demand for certain minerals and machine tools by promising to buy a portion of the resulting output. Some of these were then placed in stockpiles for possible future use.
  • The U.S. government could use similar tools today if, for example, it wanted to expand the nation’s ability to manufacture personal protective equipment and ventilators, items that might be needed to combat the next pandemic.
  • Globalization is not an unstoppable natural force, propelled solely by technological progress and autonomous market forces; instead it is a man-made phenomenon with contours shaped by the choices of states as well as firms.
  • China’s emergence as an irresistibly attractive manufacturing platform was partly due to the sheer size of its working-age population and the falling costs of communication and transportation, but also due to deliberate government policies designed to aid in the acquisition of foreign intellectual property while keeping the cost of land, labor, and capital low and exchange rates favorable.
  • the migration of manufacturing capacity from the advanced industrial countries reflected not only the profit and loss calculations of individual companies but also the permissive policies of Western governments that concluded in effect (in the U.S. case) that what was good for Apple or 3M was good for the United States.
  • if it results in excessive dependence, an addiction to low costs can create serious commercial and strategic risks
  • There are obvious dangers here. Sharpened tools of trade and industrial policy can be abused by irresponsible leaders seeking to pander to voters and pay off supporters, or they may be captured and exploited by special interests.
Ed Webb

Imperialist appropriation in the world economy: Drain from the global South through une... - 0 views

www.sciencedirect.com/...S095937802200005X

empire analysis history colonialism politics economics economy trade

shared by Ed Webb on 05 Mar 22 - No Cached
  • Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade.
  • Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South
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  • Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.
  • Today, we are told, the world economy functions as a meritocracy: countries that have strong institutions, good markets, and a steadfast work ethic become rich and successful, while countries that lack these things, or which are hobbled by corruption and bad governance, remain poor. This assumption underpins dominant perspectives in the field of international development (Sachs, 2005, Collier, 2007, Rostow, 1990, Moyo, 2010, Calderisi, 2007, Acemoglu and Robinson, 2012), and is reinforced by the rhetoric, common among neoclassical economists, that free-trade globalization has created an “even playing field”.
  • Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Historians have demonstrated that the rise of Western Europe depended in large part on natural resources and labour forcibly appropriated from the global South during the colonial period, on a vast scale. Spain extracted gold and silver from the Andes, Portugal extracted sugar from Brazil, France extracted fossil fuels, minerals and agricultural products from West Africa, Belgium extracted rubber from the Congo; and Britain extracted cotton, opium, grain, timber, tea and countless other commodities from its colonies around the world – all of which entailed the exploitation of Southern labour on coercive terms, including through mass enslavement and indenture. This pattern of appropriation was central to Europe’s industrial growth, and to financing the expansion and industrialization of European settler colonies, including Canada, Australia, New Zealand and the United States, which went on to develop similarly imperialist orientations toward the South (e.g., Naoroji, 1902, Pomeranz, 2000, Beckert, 2015, Moore, 2015, Bhambra, 2017, Patnaik, 2018, Davis, 2002).
  • for every unit of embodied resources and labour that the South imports from the North they have to export many more units to pay for it, enabling the North to achieve a net appropriation through trade. This dynamic was theorized by Emmanuel (1972) and Amin (1978) as a process of “unequal exchange”.Emmanuel and Amin argued that unequal exchange enables a “hidden transfer of value” from the global South to the global North, or from periphery to core, which takes place subtly and almost invisibly, without the overt coercion of the colonial apparatus and therefore without provoking moral outrage. Prices are naturalized on the grounds that they represent “utility”, or “value”, or the outcome of “market mechanisms” such as supply and demand, obscuring the extent to which they are determined by power imbalances in the global political economy. Price differentials in international trade therefore function as an effective method of maintaining the patterns of appropriation that once overtly defined the colonial economy, allowing blame for “underdevelopment” to be shifted onto the victims.
  • Following Dorninger et al. (2021), we use a “footprint” analysis of input–output data to quantify the physical scale of raw materials, land, energy and labour embodied in trade between the North and South, looking not only at traded goods themselves but also the upstream resources and labour that go into producing and transporting those goods, including the machines, factories, infrastructure, etc.
  • Grounding our analysis in the physical dimensions of unequal exchange is important for several reasons. First, these resources – raw materials, land, labour and energy – embody the productive potential that is required for meeting human needs (use-value) and for generating economic growth (exchange-value). Physical drain is therefore ultimately what drives global inequalities in terms of access to provisions, as well as in terms of GDP or income (see Hornborg, 2020). Second, this approach allows us to maintain sight of the ecological impacts of unequal exchange. We know that excess energy and material consumption in high-income nations, facilitated by appropriation from the rest of the world, is causing ecological breakdown on a global scale. Tracing flows of resources embodied in trade allows us to determine the extent to which Northern appropriation is responsible for ecological impacts in the South; i.e., ecological debt (Roberts and Parks, 2009, Warlenius et al., 2015, Hornborg and Martinez-Alier, 2016).
  • Due to the growing fragmentation of international commodity chains, monetary databases on bilateral gross trade flows have been criticised for not accurately depicting the monetary interdependencies between national economies (Johnson and Noguera, 2012), i.e., the amount of a countries’ value added that is induced by foreign final demand and international trade relations. Trade in Value Added (TiVA) indicators Johnson and Noguera, 2012, Timmer et al., 2014 are designed to take into account the complexity of the global economy. The TiVA concept is motivated by the fact that, in monetary terms, trade in intermediates accounts for approximately two-thirds of international trade. Imports (of intermediates) are used to produce exports and hence bilateral gross exports may include inputs (i.e., value added) from third party countries (Stehrer, 2012). TiVA reveals where (e.g., in which country or industry) and how (e.g. by capital or labour) value is added or captured in global commodity chains (Timmer et al., 2014).
  • TiVA, which is sometimes referred to as the “value footprint”, is the monetary counterpart of the MRIO-based environmental footprint because both indicators follow the same system boundaries, i.e., all supply chains between production and final consumption of two countries including all direct and indirect interlinkages. Moreover, in contrast to global bilateral monetary trade flows, TiVA is globally balanced, meaning that national exports and imports globally sum up to zero. This is an important feature of the TiVA indicator that facilitates more consistent and unambiguous assessments.
  • for every unit of embodied raw material equivalent that the South imports from the North, they have to export on average five units to “pay” for it
  • For land the average ratio is also 5:1, for energy it is 3:1, and for labour it is 13:1
  • Table 1. Resource drain from the South.ResourceNorth → South flows 2015South → North flows 2015Drain from South in 2015Cumulative drain from South 1990–2015Raw material equivalents [Gt]3.3715.3912.02254.40Embodied land [mn ha]527.421,349.01821.5932,987.23Embodied energy [EJ]21.5543.5121.06650.34Embodied labour [mn py-eq]31.11219.22188.125,956.62
  • in the year 2015 the North’s net appropriation from the South totalled 12 billion tons of raw materials, 822 million hectares of land, 21 exajoules of energy (equivalent to 3.4 billion barrels of oil), and 188 million person-years equivalents of labour (equivalent to 392 billion hours of work). By net appropriation we mean that these resources are not compensated in equivalent terms through trade; they are effectively transferred gratis. And this appropriation is not insignificant in scale; on the contrary, it comprises a large share (on average about a quarter) of the North’s total consumption.
  • significant consequences for the global South, in terms of lost use-value. This quantity of Southern raw materials, land, energy and labour could be used to provision for human needs and develop sovereign industrial capacity in the South, but instead it is mobilized around servicing consumption in the global North.
  • Eight hundred and twenty-two million hectares of land, which is twice the size of India, would in theory be enough to provide nutritious food for up to 6 billion people, depending on land productivity and diet composition
  • material use is tightly linked to environmental pressures. It accounts for more than 90% of variation in environmental damage indicators (Steinmann et al., 2017), and more than 90% of biodiversity loss and water stress (International Resource Panel, 2019). Moreover, as Van der Voet et al. (2004) demonstrate, while impacts vary by material, and vary as technologies change, there is a coupling between aggregate mass flows and ecological impact. Net flows of material resources from South to North mean that much of the impact of material consumption in the North (43% of it, net of trade) is suffered in the South. The damage is offshored.
  • Industrial ecologists hold that global extraction and use of materials should not exceed 50 billion tons per year (Bringezu, 2015). In 2015, the global economy was using 87 billion tons per year, overshooting the boundary by 74% and driving ecological breakdown. This overshoot is due almost entirely to excess resource consumption in global North countries. The North consumed 26.71 tons of materials per capita in 2015, which is roughly four times over the sustainable threshold (6.80 tons per capita in 2015). Our results indicate that most of the North’s excess consumption (58% of it) is sustained by net appropriation from the global South; without this appropriation, material use in high-income nations would be much closer to the sustainable level.
  • In consumption-based terms, the North is responsible for 92% of carbon dioxide emissions in excess of the planetary boundary (350 ppm atmospheric concentration of CO2) (Hickel, 2020), while the consequences harm the South disproportionately, inflicting dramatic social and economic costs (Kikstra et al., 2021b, Srinivasan et al., 2008). The South suffers 82–92% of the costs of climate change, and 98–99% of the deaths associated with climate change (DARA, 2012)
  • Net appropriation of land means soil depletion, water depletion, and chemical runoff are offshored; net appropriation of energy means that the health impacts of particulate pollution are offshored; net appropriation of labour means that the negative social impacts of exploitation are offshored, etc (Wiedmann and Lenzen, 2018). In the case of non-renewable resources there is also a problem of depletion: resources appropriated from the South are no longer available for future generations to use (Costanza and Daly, 1992, World Bank, 2018), which is particularly problematic given that under conditions of net appropriation economic losses are not offset by investments in capital stock (cf. Hartwick, 1977). Finally, the extractivism that underpins resource appropriation generates social dislocations and conflicts at resource frontiers (Martinez-Alier, 2021).
  • the value of resources and labour cannot be quantified in dollars, and there is no such thing as a “correct” price.
  • Prices under capitalism do not reflect value or utility in any objective way. Rather, they reflect, among other things, the (im)balance of power between market agents (capital and labour, core and periphery, lead firms and their suppliers, etc); in other words, they are a political artefact
  • While prices by definition do not reflect value, they do allow us to compare the scale of drain to prevailing monetary representations of production and income in the world economy.
  • Fig. 2 shows that drain from the South in 2015 amounted to $14.1 trillion when measured in terms of raw material equivalents, $5.1 trillion when measured in terms of land, $3.6 trillion when measured in terms of energy and $20.3 trillion when measured in terms of labour.
  • Over the period 1990–2015, the drain sums to $242 trillion (constant 2010 USD). This represents a significant “windfall” for the North, similar to the windfall that was derived from colonial forms of appropriation; i.e., goods that did not have to be produced on the domestic landmass or with domestic labour, and did not have to be bought on the domestic market, or paid for with exports (see Pomeranz, 2000, Patnaik, 2018). While previous studies have shown that the price distortion factor increased dramatically during the structural adjustment period in the 1980’s (Hickel et al., 2021), our data confirms that since the early- to mid-1990’s it has tended to decline slightly. This means that the increase in drain during the period 1990–2007, prior to the global financial crisis, was driven primarily by an increase in the volume of international trade rather than by an increase in price distortion.
  • Table 3 shows that, over the 1990–2015 period, resources appropriated from the South have been worth on average roughly a quarter of Northern GDP.
  • the North’s reliance on appropriation from the South has generally increased over the period (despite a significant drop after the global financial crisis), whereas the South’s losses as a share of total economic activity have generally decreased, particularly since 2003, due to an increase in South-South trading and higher domestic GDP creation or capture within the South, both driven largely by China
  • Aid flows create the powerful impression that rich countries give benevolently to poorer countries. But the data on drain through unequal exchange raises significant questions about this narrative.
  • net appropriation by DAC countries through unequal exchange from 1990 to 2015 outstripped their aid disbursements over the same period by a factor of almost 80
  • for every dollar of aid that donors give, they appropriate resources worth 80 dollars through unequal exchange. From the perspective of aid recipients, for every dollar they receive in aid they lose resources worth 30 dollars through drain
  • The dominant narrative of international development holds that poor countries are poor because of their own internal failings and are therefore in need of assistance. But the empirical evidence on unequal exchange demonstrates that poor countries are poor in large part because they are exploited within the global economy and are therefore in need of justice. These results indicate that combating the deleterious effects of unequal exchange by making the global economy fairer and more equitable would be much more effective, in terms of development, than charity.
  • In an equitable world, the resource trade deficit that the North sustains in relation to the South would be financed with a parallel monetary trade deficit. But in reality, the monetary trade deficit is very small, equivalent to only about 1% of global trade revenues, and fluctuates between North and South. In effect, this means that the North achieves its large net appropriation of resources and labour from the South gratis.
  • The question of sectoral disparities has been moot since the 1980s, however, as industrial production has shifted overwhelmingly to the South. The majority of Southern exports (70%) consist of manufactured goods (data from UNCTAD; see Smith, 2016). Of all the manufactured goods that the USA imports, 60% are produced in developing countries. For Japan it is 70%. We can see this pattern reflected also in the industrial workforce. As of 2010, at least 79% of the world’s industrial workers live in the South (data from the ILO; see Smith, 2016). This shift is due in large part to the rise of global commodity chains, which now constitute 70% of international trade. Between 1995 and 2013, there has been an increase of 157 million jobs related to global commodity chains, and an estimated 116 million of them are concentrated in the South, predominantly in the export manufacturing sector (ILO, 2015). In other words, during the period we analyse in this paper (1990–2015), the South has contributed the majority of the world’s industrial production, including high-technology production such as computers and cars. And yet price inequalities remain entrenched.
  • if Northern states or firms leverage monopoly power within global commodity chains to depress the prices of imports and increase the prices of final products, their labour “productivity” appears to improve, and that of their counterparts declines, even if the underlying production process remains unchanged. Indeed, empirical evidence indicates that real productivity differences between workers are minimal, and cannot explain wage inequalities (Hunter et al., 1990).
  • wage inequalities exist not because Southern workers are less productive but because they are more intensively exploited, and often subject to rigid systems of labour control and discipline designed to maximize extraction (Suwandi et al., 2019). Indeed, this is a major reason why Northern firms offshore production to the South in the first place: because labour is cheaper per unit of physical output (Goldman, 2012).
  • the terminology of “value-added” is a misnomer. In international trade, TiVA does not tell us who adds more value but rather who has more power to command prices. And in the case of global commodity chains, TiVA does not indicate where value is produced but rather where it is captured (Smith, 2016).
  • our analysis reveals that value in global commodity chains is disproportionately produced by the South, but disproportionately captured by the North (as GDP). Value captured in this manner is misleadingly attributed to Northern economic activities
  • rich countries are able to maintain price inequalities simply by virtue of being rich. This finding supports longstanding claims by political economists that, all else being equal, price inequalities are an artefact of power. Just as in a national economy wage rates are an artefact of the relative bargaining power of labour vis-à-vis capital, so too in international trade prices are an artefact of the relative bargaining power of national economies and corporate actors vis-à-vis their trading partners and suppliers. Countries that grew rich during the colonial period are now able to leverage their economic dominance to depress the costs of labour and resources extracted from the South. In other words, the North “finances” net appropriation from the South not with money, but rather by maintaining the prices of Southern resources and labour below the global average level.
  • Patents play a key role here: 97% of all patents are held by corporations in high-income countries (Chang, 2008:141)
  • In some cases, patents involve forcing people in the South to pay for access to resources they might otherwise have obtained much more affordably, or even for free (Shiva, 2001, Shiva, 2016).
  • In the World Bank and the IMF, Northern states hold a majority of votes (and the US holds a veto), thus giving them control over key economic policy decisions. In the World Trade Organization (which controls tariffs, subsidies, and patents), bargaining power is determined by market size, enabling high-income nations to set trade rules in their own interests.
  • ubsidized agricultural exports from the North undermine subsistence economies in the South and contribute to dispossession and unemployment, placing downward pressure on wages. Militarized borders preclude easy migration from South to North, thus preventing wage convergence. Moreover, structural adjustment programs (SAPs) imposed by the World Bank and IMF since the 1980s have cut public sector salaries and employment, rolled back labour rights, curtailed unions, and gutted environmental regulations (Khor, 1995, Petras and Veltmeyer, 2002).
  • SAPs, bilateral free trade agreements, and the World Trade Organization have forced global South governments to remove tariffs, subsidies and other protections for infant industries. This prevents governments from attempting import substitution, which would improve their export prices and drive Northern prices down. Tax evasion and illicit financial flows out of the South (which total more than $1 trillion per year) drain resources that might otherwise be reinvested domestically, or which governments might otherwise use to build national industries. This problem is compounded by external debt service obligations, which drain government revenue and require obeisance to economic policies dictated by creditors (Hickel, 2017). In addition, structural dependence on foreign investors and access to Northern markets forces Southern governments and firms to compete with one another by cutting wages and resource prices in a race to the bottom.
  • structural power imbalances in the world economy ensure that labour and resources in the South remain cheap and accessible to international capital, while Northern exports enjoy comparatively higher prices
  • Cheap labour and raw materials in the global South are not “naturally” cheap, as if their cheapness was written in the stars. They are actively cheapened
  • the analysis obscures class and geographic inequalities within countries and regions, which are significant when it comes to labour prices as well as resource consumption. The high levels of resource consumption that characterize Northern economies are driven disproportionately by rich individuals and affluent areas, as well as by corporations that control supply chains, and enabled by internal patterns of exploitation and unequal exchange in addition to drain through trade (Harvey, 2005). For example, there are marginalized regions of the United States that serve as an “internal periphery” (Wishart, 2014). It would also be useful to explore the gender dynamics of unequal exchange within countries. These questions cannot be answered with our data, however.
  • This research confirms that the “advanced economies” of the global North rely on a large net appropriation of resources and labour from the global South, extracted through induced price differentials in international trade. By combining insights from the classical literature on unequal exchange with contemporary insights about global commodity chains and new methods for quantifying the physical scale of embodied resource transfers, we are able to develop a novel approach to estimating the scale and value of resource drain from the global South. Our results show that, when measured in Northern prices, the drain amounted to $10.8 trillion in 2015, and $242 trillion over the period from 1990 to 2015 – a significant windfall for the North, equivalent to a quarter of Northern GDP. Meanwhile, the South’s losses through unequal exchange outstrip their total aid receipts over the period by a factor of 30.
  • support contemporary demands for reparations for ecological debt, as articulated by environmental justice movements and by the G77
  • True repair requires permanently ending the unequal distribution of environmental goods and burdens between the global North and global South, restoring damaged ecosystems, and shifting to a regenerative economic system.
  • It is clear that official development assistance is not a meaningful solution to global poverty and inequality; nor is the claim that global South countries need more economic liberalisation and export-oriented market integration. The core problem is that low- and middle-income countries are integrated into the global economy on fundamentally unequal terms. Rectifying this problem is critical to ensuring that global South countries have the financial, physical and human resources they need to improve social outcomes.
  • democratize the institutions of global economic governance, such as the World Bank, IMF and WTO, so that global South countries have more control over trade and finance policy.
  • end the North’s use of unfair subsidies for agricultural exports, and remove structural adjustment conditions on international finance, which would help mitigate downward pressure on wages and resource prices in the South while at the same time enabling Southern countries to build sovereign industrial capacity
  • a global living wage system, and a global system of environmental regulations, would effectively put a floor on labour and resource prices
  • Reducing North-South price differentials would in turn reduce the scale of the North’s net resource appropriation from the South (in other words, it would reduce ecologically unequal exchange), thus reducing excess consumption in the North and the ecological impacts that it inflicts on the South.
  • Structural transformation will only be achieved through political struggle from below, including by the anti-colonial and environmental justice movements that continue to fight against imperialism today
Ed Webb

More Wealth, More Jobs, but Not for Everyone: What Fuels the Backlash on Trade - The Ne... - 1 views

www.nytimes.com/...els-the-backlash-on-trade.html

trade economy US USA China Netherlands EU jobs globalization automation robots

shared by Ed Webb on 28 Sep 16 - No Cached
  • “More global trade is a good thing if we get a piece of the cake,” Mr. Duijzers said. “But that’s the problem. We’re not getting our piece of the cake.”
  • For generations, libraries full of economics textbooks have rightly promised that global trade expands national wealth by lowering the price of goods, lifting wages and amplifying growth. The powers that emerged victorious from World War II championed globalization as the antidote to future conflicts. From Asia to Europe to North America, governments of every ideological persuasion have focused on trade as their guiding economic force. Advertisement Continue reading the main story But trade comes with no assurances that the spoils will be shared equitably. Across much of the industrialized world, an outsize share of the winnings have been harvested by people with advanced degrees, stock options and the need for accountants. Ordinary laborers have borne the costs, suffering joblessness and deepening economic anxiety
  • When millions of workers lost paychecks to foreign competition, they lacked government supports to cushion the blow. As a result, seething anger is upending politics from Europe to North America.
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  • Much of the global economy is operating free of artificial enhancements. Lower-skilled workers confront bleak opportunities and intense competition, especially in the United States. Even as recent data shows middle-class Americans are finally starting to share in the gains from the recovery, incomes for many remain below where they were a decade ago
  • technological disruption and economic upheaval are now at work in an era of scarcity
  • The worst financial crisis since the Great Depression has left banks from Europe to the United States reluctant to lend. Real estate bonanzas from Spain to Southern California gave way to a disastrous wave of foreclosures, eliminating construction jobs. China’s slowdown has diminished its appetite for raw materials, sowing unemployment from the iron ore mines of Brazil to the coal pits of Indonesia.
  • Trade did not cause the breakdown in economic growth. Indeed, trade has helped generate what growth remains. But the pervasive stagnation has left little cover for those set back by globalization.
  • China’s entry into the World Trade Organization in 2001 unleashed a far larger shock, but a construction boom absorbed many laid-off workers.
  • “We do need to have these trade agreements,” Mr. Bown said, “but we do need to be cognizant that there are going to be losers and we need to have policies to address them.”
  • Corporations that used China to cut costs raised their value, enriching executives and ordinary investors. Today’s Headlines Wake up each morning to the day’s top news, analysis and opinion delivered to your inbox. Please verify you're not a robot by clicking the box. Invalid email address. Please re-enter. Sign Up Receive occasional updates and special offers for The New York Times's products and services. Thank you for subscribing. An error has occurred. Please try again later. You are already subscribed to this email. View all New York Times newsletters. See Sample Manage Email Preferences Not you? Privacy Policy The casualties of China’s exports are far fewer, but they are concentrated. The rugged country of western North Carolina suffered mass unemployment as Chinese-made wooden furniture put local plants out of business. So did glassmakers in Toledo, Ohio, and auto parts manufacturers across the Midwest.
  • Even among those who support trade, doubts are growing about its ability to deliver on crucial promises. A 2014 Pew Research Center survey of people in 44 countries found that only 45 percent of respondents believed trade raises wages. Only 26 percent believed that trade lowers prices.
  • Workers employed in major export industries earn higher wages than those in domestically focused sectors.Americans saw their choice of products expand by one-third in recent decades, the Federal Reserve Bank of Dallas found. Trade is how raspberries appear on store shelves in the dead of winter.
  • In the fallout, the United States maintained limits on unemployment benefits, leaving American workers vulnerable to plummeting fortunes. Social welfare systems have limited the toll in Europe, but economic growth has been weak, so jobs are scarce.
  • automation has grown in sophistication and reach. Between 2000 and 2010, the United States lost some 5.6 million manufacturing jobs, by the government’s calculation. Only 13 percent of those job losses can be explained by trade, according to an analysis by the Center for Business and Economic Research at Ball State University in Indiana. The rest were casualties of automation or the result of tweaks to factory operations that enabled more production with less labor.
  • if robots are a more significant threat to paychecks, they are also harder to blame than hordes of low-wage workers in overseas factories.“We have a public policy toward trade,” said Douglas A. Irwin, an economist at Dartmouth College. “We don’t have a public policy on automation.”
  • China’s relentless development was turning farmland into factories, accelerated by a landmark in the history of trade: the country’s inclusion in the World Trade Organization.The W.T.O. was born out of the General Agreement on Tariffs and Trade, a compact forged in 1947 that lowered barriers to international commerce in an effort to prevent a repeat of global hostilities.In the first four decades, tariffs on manufactured wares plunged from about 35 percent to nearly 6 percent, according to the Federal Reserve Bank of Chicago. By 2000, the volume of trade among members had swelled to 25 times that of a half-century earlier.
  • Mexico — home to about 123 million people — was not big enough to refashion the terms of trade. When China joined the W.T.O. in 2001, that added a country of 1.3 billion people to the global trading system
  • The anti-trade backlash, building for years, has become explosive because the global economy has arrived at a sobering period of reckoning. Years of investment manias and financial machinations that juiced the job market have lost potency, exposing longstanding downsides of trade that had previously been masked by illusive prosperity.
  • Chinese imports eliminated nearly one million American manufacturing jobs between 1999 and 2011. Add in suppliers and other related industries, and the total job losses reach 2.4 million.
  • Mr. Trump vows to slap punitive tariffs on Chinese goods. But that would very likely just shift production to other low-wage countries like Vietnam and Mexico. It would not turn the lights on at shuttered textile plants in the Carolinas. (Even if it did, robots would probably capture most of the jobs.)
  • Trade Adjustment Assistance, a government program started in 1962 and expanded significantly a dozen years later, is supposed to support workers whose jobs are casualties of overseas competition. The program pays for job training.But Mr. Simmons rolls his eyes at mention of the program. Training has almost become a joke. Skills often do not translate from old jobs to new. Many workers just draw a check while they attend training and then remain jobless.
  • European workers have fared better. In wealthier countries like Germany, the Netherlands, Sweden and Denmark, unemployment benefits, housing subsidies and government-provided health care are far more generous than in the United States.In the five years after a job loss, an American family of four that is eligible for housing assistance receives average benefits equal to 25 percent of the unemployed person’s previous wages, according to data from the Organization for Economic Cooperation and Development. For a similar family in the Netherlands, benefits reach 70 percent.
  • Yet in Europe, too, the impacts of trade have been uneven, in part because of the quirks of the European Union. Trade deals are cut by Brussels, setting the terms for the 28 member nations. Social programs are left to national governments.
  • In China, farmers whose land has been turned into factories are making more steel than the world needs. Advertisement Continue reading the main story In America, idled steel workers are contemplating how to live off the land.
  • a provision that would enable multinational companies to sue governments for compensation when regulations dent their profits.Esso, a subsidiary of Exxon Mobil, the American petroleum company, has operations in the Netherlands. Suppose the government went ahead with plans to limit drilling to protect the environment?“They could sue the Dutch state,” he fumed. “We are not so sure in the Netherlands whether we want to give the multinationals so much power. We are a trading country, but it’s not always that trade should prevail against quality of life.”
  • the longshoremen fret about robots
  • Now, many longshoremen sit in glass-fronted offices set back from the docks, controlling robotic arms via computer terminals.
  • The robots will win in the end, because robots never strike. Robots improve with time.
  • Trade deals, immigrant labor, automation: As Mr. Arkenbout sees it, these are all just instruments wielded in pursuit of the same goal — paying him less so corporations can keep more.“When they don’t need me anymore,” he said, “I’m nothing.”
  • Ed Webb on 28 Sep 16
     
    Relevant to our class discussion on 9/27/16
Ed Webb

Mining the Future - Foreign Policy - 0 views

foreignpolicy.com/...china-critical-minerals-metals

China US Africa SouthAfrica trade mining economy technology future strategy

shared by Ed Webb on 11 Jul 19 - No Cached
  • 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
  • ...23 more annotations...
  • 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

How Many Guns Did the U.S. Lose Track of in Iraq and Afghanistan? Hundreds of Thousands... - 0 views

www.nytimes.com/...tan-hundreds-of-thousands.html

US USA arms weapons proliferation Iraq Syria Afghanistan

shared by Ed Webb on 21 Oct 16 - No Cached
  • In all, Overton found, the Pentagon provided more than 1.45 million firearms to various security forces in Afghanistan and Iraq, including more than 978,000 assault rifles, 266,000 pistols and almost 112,000 machine guns. These transfers formed a collage of firearms of mixed vintage and type: Kalashnikov assault rifles left over from the Cold War; recently manufactured NATO-standard M16s and M4s from American factories; machine guns of Russian and Western lineage; and sniper rifles, shotguns and pistols of varied provenance and caliber, including a large order of Glock semiautomatic pistols, a type of weapon also regularly offered for sale online in Iraq. Advertisement Continue reading the main story Many of the recipients of these weapons became brave and important battlefield allies. But many more did not. Taken together, the weapons were part of a vast and sometimes minimally supervised flow of arms from a superpower to armies and militias often compromised by poor training, desertion, corruption and patterns of human rights abuses. Knowing what we know about many of these forces, it would have been remarkable for them to retain custody of many of their weapons. It is not surprising that they did not.
  • the Pentagon said it has records for fewer than half the number of firearms in the researchers’ count — about 700,000 in all
  • Overton’s analysis also does not account for many weapons issued by the American military to local forces by other means, including the reissue of captured weapons, which was a common and largely undocumented practice.
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  • One point is inarguable: Many of these weapons did not remain long in government possession after arriving in their respective countries. In one of many examples, a 2007 Government Accountability Office report found that 110,000 Kalashnikov assault rifles and 80,000 pistols bought by the United States for Iraq’s security forces could not be accounted for — more than one firearm for every member of the entire American military force in Iraq at any time during the war. Those documented lapses of accountability were before entire Iraqi divisions simply vanished from the battlefield, as four of them did after the Islamic State seized Mosul and Tikrit in 2014, according to a 2015 Army budget request to buy more firearms for the Iraqi forces to replace what was lost.
  • According to its tally, the American military issued contracts potentially worth more than $40 billion for firearms, accessories and ammunition since Sept. 11, including improvements to the ammunition plants required to keep the cartridge production going. Most of these planned expenditures were for American forces, and the particulars tell the story of two wars that did not go as pitched. More than $4 billion worth of contracts was issued for small arms, including pistols, machines guns, assault rifles and sniper rifles, and more than $11 billion worth was issued for associated equipment, from spare machine-gun barrels to sniper-rifle scopes, according to Overton’s count. A much larger amount — nearly $25 billion — was issued for ammunition or upgrades to ammunition plants to keep those firearms supplied. That last figure aligns with what most any veteran of ground combat in Iraq and Afghanistan could tell you — American troops have been involved in a dizzying number of gunfights since 2001, burning through mountains of ammunition along the way.
  • In April, after being approached by The New York Times and reviewing data from Armament Research Services, a private arms-investigation consultancy, Facebook closed many pages in the Middle East that were serving as busy arms bazaars, including pages in Syria and Iraq on which firearms with Pentagon origins accounted for a large fraction of the visible trade
  • many new arms-trading Facebook pages have since cropped up, including, according to their own descriptions, virtual markets operating from Baghdad and Karbala
  • The American arming of Syrian rebels, by both the Central Intelligence Agency and the Defense Department, has also been troubled by questions of accountability and outright theft in a war where the battlefield is thick with jihadists aligned with Al Qaeda or fighting under the banner of the Islamic State.
  • The data show large purchases of heavy-machine guns and barrels. This is a wink at the shift in many American units from being foot-mobile to vehicular, as grunts buttoned up within armored trucks and needed turret-mounted firepower to defend themselves — a matériel adaptation forced by ambushes and improvised bombs, the cheaply made weapons that wearied the most expensive military in the world.
  • a startlingly risky aspect of the Pentagon’s arming of local forces with infantry arms: the wide distribution of anti-armor weapons, including RPG-7s, commonly called rocket-propelled grenades, and recoilless weapons, including the SPG-9. Each of these systems fires high-explosive (and often armor-piercing) projectiles, and each was commonly used by insurgents in attacks. After the opening weeks of each war, the only armor on either battlefield was American or associated with allied and local government units, which made the Pentagon’s practice of providing anti-armor weapons to Afghan and Iraqi security forces puzzling. Why would they need anti-armor weapons when they had no armor to fight? All the while rockets were somehow mysteriously being fired at American convoys and patrols in each war.
  • a portrait of the Pentagon’s bungling the already-awkward role it chose for itself — that of state-building arms dealer, a role that routinely led to missions in clear opposition to each other. While fighting two rapidly evolving wars, the American military tried to create and bolster new democracies, governments and political classes; recruit, train and equip security and intelligence forces on short schedule and at outsize scale; repair and secure transportation infrastructure; encourage the spread or restoration of the legal industry and public services; and leave behind something more palatable and sturdy than rule by thugs.
  • The procession of arms purchases and handouts has continued to this day, with others involved, including Iran to its allies in Iraq and various donors to Kurdish fighters. In March, Russia announced that it had given 10,000 Kalashnikov assault rifles to Afghanistan, already one of the most Kalashnikov-saturated places on earth. If an analysis from the United States’ Special Inspector General for Afghanistan Reconstruction, or Sigar, is to be believed, Afghanistan did not even need them. In 2014 the inspector general reported that after the United States decided to replace the Afghan Army’s Kalashnikovs with NATO-standard weapons (a boon for the rifles’ manufacturer with a much less obvious value for an already amply armed Afghan force), the Afghan Army ended up with a surplus of more than 83,000 Kalashnikovs. The United States never tried to recover the excess it had created, giving the inspector general’s office grounds for long-term worry. “Without confidence in the Afghan government’s ability to account for or properly dispose of these weapons,” it noted, “Sigar is concerned that they could be obtained by insurgents and pose additional risks to civilians.” Write A Comment
  • What to do? If past is precedent, given enough time one of the United States’ solutions will be, once again, to ship in more guns.
Ed Webb

Chocolate: Worth its weight in gold? - Features, Food & Drink - The Independent - 0 views

www.independent.co.uk/...ts-weight-in-gold-2127874.html

IR trade commodities development Africa chocolate

shared by Ed Webb on 10 Nov 10 - No Cached
  • The world could run out of affordable chocolate within 20 years as farmers abandon their crops in the global cocoa basket of West Africa, industry experts claim.
  • Farmers in the countries that produce the bulk of cocoa bought by the multinationals who control the market have found the crop a bitter harvest. The minimal rewards they have historically received do not provide incentives for the time-consuming work of replanting as their trees die off – a task that usually means moving to a new area of canopied forest and waiting three to five years for a new crop to mature. "It's hard to maintain production at high levels in a particular plot of land every time, because of pest problems that eat away at the yields and the farms need to be rejuvenated," explains Thomas Dietsch, research director of ecosystem services at the Earthwatch Organisation. "Although research into new varieties and better management methods could solve those problems, the other challenge is that cocoa is competing for agricultural space with other commodities like palm oil – which is increasingly in demand for biofuels."
  • Despite price rises on the trading floor, precious little reaches the smallholders who make up 95 per cent of growers, according to Mr. Lass, a former Cadburys trader and ethical sourcing advisor who has co-authored a book on the cocoa industry.
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  • some farmers in West Africa have turned to child labour to compensate for the manpower shortage
  • , chocolate will go back to being what it used to be – a rarefied treat
  • A spokesman from Cadburys doesn't deny the shortage of cheaper cocoa, but suggests scarcity might be averted through Fair Trade initiatives. "Together with other manufacturers and the wider cocoa industry, we have been working on a number of agricultural initiatives to both increase and improve yields," he says. "Our move into Fair Trade was a separate step, to both pay a better price to farmers, and to encourage the next generation of cocoa farmers to stay within the industry."
  • Divine Chocolate, a Ghanaian manufacturer that is 45 per cent owned by a cooperative of 45,000 cocoa farmers. "The Fair Trade system helps ensure that the value of farming is delivered directly to the farmers and their communities," says its managing director Sophi Tranchell.
Ed Webb

Beyond Oil: Lithium-Ion Battery Minerals and Energy Security - Foreign Policy Research ... - 0 views

www.fpri.org/...y-minerals-and-energy-security

energy China resources commodities technology climate trade OPEC Saudi KSA Russia oil

shared by Ed Webb on 11 Mar 21 - No Cached
  • Should the mass adoption of electric vehicles occur, access to reliable and affordable sources of minerals like cobalt, graphite, lithium, manganese, and nickel, which are used in modern electric-vehicle batteries, will come to occupy a larger share of energy security concerns, especially since one country has already gained control over much of the world’s production and processing of those minerals
  • oil has remained abundant and affordable, despite major production disruptions during the Arab Spring from 2010-2012, in Libya from 2013-2016, and in Venezuela after 2017. In fact, oil prices had dropped 60 percent from their 2008 highs by early 2020, even before the COVID-19 pandemic had made a dent in the global economy.
  • falling oil prices throughout the 2010s may have lulled Western policymakers into believing that the Russian Federation, whose economy is heavily reliant on oil and natural gas exports, would become more docile. It did not; instead, it continued to modernize its military and intimidate its neighbors
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  • China’s monopoly can be largely attributed to its relatively low energy costs and less stringent environmental regulations.
  • a single country, China, has gained control over much of the world’s production and processing of the cobalt, graphite, lithium, manganese, and nickel used in lithium-ion batteries, the type of electricity-storage devices favored by electric-vehicle manufacturers today.
  • Chinese companies now control almost half of the DRC’s cobalt output, which constitutes over two-thirds of the world’s production. Perhaps of greater concern, China has come to dominate the refining and processing of those minerals. Eighty percent of the cobalt sulphates and oxides used for lithium-ion battery cathodes are processed in China.
  • OPEC and Russia bargained for months, but talks finally broke down after Moscow refused to limit its oil production to help stabilize oil prices in the wake of the slump in global oil demand caused by the COVID-19 pandemic. Calculating that it could hurt Russia enough to force it back to the negotiating table, Saudi Arabia boosted its daily oil output by 20 percent, flooding the market with oil. Not to be intimidated, Russia responded with a short-term increase in its own oil output (possibly to strike back at Saudi Arabia or to force some American shale-oil companies out of business or both). As a result, oil prices collapsed. The futures price for West Texas Intermediate crude touched a remarkable -$37 per barrel. Although beneficial for oil consumers, the Russia-Saudi Arabia oil price war was a reminder of the influence that state-driven oil producers still had over the world’s energy security.
  • Though China controls a smaller share of the world’s production of lithium than that of other minerals, it has been buying up stakes in lithium mines around the globe.
  • Moving up the value chain, it is expected to build 101 of the 136 lithium-ion battery manufacturing plants that are currently planned over the next decade
  • n 2010, China abruptly restricted its rare-earth metal exports to Japan, nominally to protect the environment. But after a lengthy review, the World Trade Organization ruled against China’s restrictions. Since then, worries about relying on China as a strategic-minerals supplier have continued to grow. Sometimes, China feeds those fears. In one 2019 incident, China’s state-run Global Times flaunted the country’s dominance over rare-earth metals as a strategic weapon against other countries with the headline “China gears up to use rare-earth advantage.” Such not-so-veiled threats from government-linked media only fan suspicions that China will behave no better than Russia or Saudi Arabia—and possibly worse.
  • In 2019, the U.S. Department of State launched the Energy Resources Governance Initiative to “promote resilient and secure energy resource mineral supply chains” for all kinds of renewable energy and battery storage technologies.  The initiative’s membership has grown to include Australia, Botswana, Canada, Peru,
  • the world appears to be swapping its old dependency on OPEC and Russia, a fractious bunch that until recently was losing power to American oil-shale upstarts, for a new one on China, a single country with a one-party government
Ed Webb

How Globalization Will Look After the Coronavirus Pandemic - 0 views

foreignpolicy.com/...war-after-coronavirus-pandemic

IR opinion analysis globalization pandemics

shared by Ed Webb on 03 Aug 20 - Cached
  • has also illustrated that national governments remain the primary actors
    • Ed Webb
      Ed Webb on 03 Aug 20
       
      Has it really? Which perspective would argue this and how might we challenge it?
  • the world is likely to see a different, more limited version of global integration than the one we have known over the past three decades
  • Before the pandemic, global goods trade was still rising, but relative to the total output of the global economy, the share of trade is lower today than it was before the financial crisis.
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  • Total global foreign direct investment has not returned to its highs more than a decade ago.
  • globalization is complex, and not every indicator points in the same direction. The intensity of trade in goods is down, but in services it’s up. The flow of data across borders has risen dramatically, even as countries like China and Iran seek to restrict it. International travel and study abroad were at all-time highs before the coronavirus pandemic
  • Globalization is often blamed for financial crises—not only the global one of 2008, but also the 1997 Asian crisis and others in Russia, Turkey, Ecuador, Cyprus and elsewhere
  • expanded inequality both among nations and within them
  • consume more energy and produce higher greenhouse-gas emissions
  • since 2003, the world has seen successive outbreaks of SARS, swine flu, MERS, Ebola, and the Zika virus
  • many of those benefits are diffuse and taken for granted, while the costs—lost manufacturing jobs, for instance—remain concentrated. And those on the losing end of globalization now have a new political voice: populist parties promising sovereignty, nationalism, and local solutions, as well as a weakening of elite-led, seemingly unaccountable international institutions
  • Many see COVID-19 not as a cause around which the world’s governments should rally, but rather as the most dramatic example of an already broken globalized system.
  • it is easy to imagine governments around the world broadly rethinking international travel, migration, supply-chain risk, export controls, information sharing, and more—in short, key components of globalization itself. The new watchword is likely to be risk reduction rather than cost reduction.
  • Fragile supply chains are not an indictment of globalization per se, but of the way companies have become dependent on single sources of supply
  • economic integration will still take place, but it will continue to shift from the global to the regional and bilateral level
  • How to protect workers without undermining globalization’s economic benefits, including a higher standard of living, remains an unsolved question.
  • Closed borders, travel bans, paralyzed supply chains, and export restrictions have prompted many to ask whether globalization itself might fall victim to the coronavirus.
  • globalization was already in decline well before the outbreak, having reached its peak before the 2008 global financial crisis and having never recovered since then
  • The worldwide interconnectedness of goods, services, capital, people, data, and ideas has produced undeniable benefits. But during this pandemic, the risks of dependency have fully entered the public consciousness
  • the pandemic has demonstrated the fragility of supply chains, prompted national responses rather than cooperative international ones, and reinforced nationalist arguments for reshoring manufacturing and more limited migration
Ed Webb

Why the Pandemic Is So Bad in America - The Atlantic - 0 views

www.theatlantic.com/...614191

politics analysis USA US pandemics health healthcare race racism economy Trump

shared by Ed Webb on 05 Aug 20 - No Cached
  • almost everything that went wrong with America’s response to the pandemic was predictable and preventable
  • sluggish response by a government denuded of expertise
  • Chronic underfunding of public health
  • ...62 more annotations...
  • bloated, inefficient health-care system
  • Racist policies that have endured since the days of colonization and slavery left Indigenous and Black Americans especially vulnerable
  • decades-long process of shredding the nation’s social safety net
  • same social-media platforms that sowed partisanship and misinformation during the 2014 Ebola outbreak in Africa and the 2016 U.S. election became vectors for conspiracy theories
  • the COVID‑19 debacle has also touched—and implicated—nearly every other facet of American society: its shortsighted leadership, its disregard for expertise, its racial inequities, its social-media culture, and its fealty to a dangerous strain of individualism.
  • SARS‑CoV‑2 is neither as lethal as some other coronaviruses, such as SARS and MERS, nor as contagious as measles. Deadlier pathogens almost certainly exist. Wild animals harbor an estimated 40,000 unknown viruses, a quarter of which could potentially jump into humans. How will the U.S. fare when “we can’t even deal with a starter pandemic?,”
  • The U.S. cannot prepare for these inevitable crises if it returns to normal, as many of its people ache to do. Normal led to this. Normal was a world ever more prone to a pandemic but ever less ready for one. To avert another catastrophe, the U.S. needs to grapple with all the ways normal failed us
  • Many conservationists jump on epidemics as opportunities to ban the wildlife trade or the eating of “bush meat,” an exoticized term for “game,” but few diseases have emerged through either route. Carlson said the biggest factors behind spillovers are land-use change and climate change, both of which are hard to control. Our species has relentlessly expanded into previously wild spaces. Through intensive agriculture, habitat destruction, and rising temperatures, we have uprooted the planet’s animals, forcing them into new and narrower ranges that are on our own doorsteps. Humanity has squeezed the world’s wildlife in a crushing grip—and viruses have come bursting out.
  • This year, the world’s coronavirus experts—and there still aren’t many—had to postpone their triennial conference in the Netherlands because SARS‑CoV‑2 made flying too risky.
  • In 2003, China covered up the early spread of SARS, allowing the new disease to gain a foothold, and in 2020, history repeated itself. The Chinese government downplayed the possibility that SARS‑CoV‑2 was spreading among humans, and only confirmed as much on January 20, after millions had traveled around the country for the lunar new year. Doctors who tried to raise the alarm were censured and threatened. One, Li Wenliang, later died of COVID‑19. The World Health Organization initially parroted China’s line and did not declare a public-health emergency of international concern until January 30. By then, an estimated 10,000 people in 20 countries had been infected, and the virus was spreading fast.
  • it found a nation through which it could spread easily, without being detected
  • “By early February, we should have triggered a series of actions, precisely zero of which were taken.”
  • Even after warnings reached the U.S., they fell on the wrong ears. Since before his election, Trump has cavalierly dismissed expertise and evidence. He filled his administration with inexperienced newcomers, while depicting career civil servants as part of a “deep state.” In 2018, he dismantled an office that had been assembled specifically to prepare for nascent pandemics. American intelligence agencies warned about the coronavirus threat in January, but Trump habitually disregards intelligence briefings. The secretary of health and human services, Alex Azar, offered similar counsel, and was twice ignored.
  • countries “rely on bans to the exclusion of the things they actually need to do—testing, tracing, building up the health system,”
  • genetic evidence shows that the specific viruses that triggered the first big outbreaks, in Washington State, didn’t land until mid-February. The country could have used that time to prepare. Instead, Trump, who had spent his entire presidency learning that he could say whatever he wanted without consequence, assured Americans that “the coronavirus is very much under control,” and “like a miracle, it will disappear.” With impunity, Trump lied. With impunity, the virus spread.
  • A study showed that the U.S. could have averted 36,000 COVID‑19 deaths if leaders had enacted social-distancing measures just a week earlier. But better late than never: By collectively reducing the spread of the virus, America flattened the curve. Ventilators didn’t run out, as they had in parts of Italy. Hospitals had time to add extra beds.
  • Tests were in such short supply, and the criteria for getting them were so laughably stringent, that by the end of February, tens of thousands of Americans had likely been infected but only hundreds had been tested.
  • Sabeti’s lab developed a diagnostic test in mid-January and sent it to colleagues in Nigeria, Sierra Leone, and Senegal. “We had working diagnostics in those countries well before we did in any U.S. states,”
  • In response to the global energy crisis of the 1970s, architects made structures more energy-efficient by sealing them off from outdoor air, reducing ventilation rates. Pollutants and pathogens built up indoors, “ushering in the era of ‘sick buildings,’ ” says Joseph Allen, who studies environmental health at Harvard’s T. H. Chan School of Public Health. Energy efficiency is a pillar of modern climate policy, but there are ways to achieve it without sacrificing well-being. “We lost our way over the years and stopped designing buildings for people,”
  • The indoor spaces in which Americans spend 87 percent of their time became staging grounds for super-spreading events. One study showed that the odds of catching the virus from an infected person are roughly 19 times higher indoors than in open air. Shielded from the elements and among crowds clustered in prolonged proximity, the coronavirus ran rampant in the conference rooms of a Boston hotel, the cabins of the Diamond Princess cruise ship, and a church hall in Washington State where a choir practiced for just a few hours.
  • Between harsher punishments doled out in the War on Drugs and a tough-on-crime mindset that prizes retribution over rehabilitation, America’s incarcerated population has swelled sevenfold since the 1970s, to about 2.3 million. The U.S. imprisons five to 18 times more people per capita than other Western democracies. Many American prisons are packed beyond capacity, making social distancing impossible. Soap is often scarce. Inevitably, the coronavirus ran amok. By June, two American prisons each accounted for more cases than all of New Zealand. One, Marion Correctional Institution, in Ohio, had more than 2,000 cases among inmates despite having a capacity of 1,500.
  • America’s nursing homes and long-term-care facilities house less than 1 percent of its people, but as of mid-June, they accounted for 40 percent of its coronavirus deaths. More than 50,000 residents and staff have died. At least 250,000 more have been infected. These grim figures are a reflection not just of the greater harms that COVID‑19 inflicts upon elderly physiology, but also of the care the elderly receive. Before the pandemic, three in four nursing homes were understaffed, and four in five had recently been cited for failures in infection control. The Trump administration’s policies have exacerbated the problem by reducing the influx of immigrants, who make up a quarter of long-term caregivers.
  • the Department of Health and Human Services paused nursing-home inspections in March, passing the buck to the states. Some nursing homes avoided the virus because their owners immediately stopped visitations, or paid caregivers to live on-site. But in others, staff stopped working, scared about infecting their charges or becoming infected themselves. In some cases, residents had to be evacuated because no one showed up to care for them.
  • its problematic attitude toward health: “Get hospitals ready and wait for sick people to show,” as Sheila Davis, the CEO of the nonprofit Partners in Health, puts it. “Especially in the beginning, we catered our entire [COVID‑19] response to the 20 percent of people who required hospitalization, rather than preventing transmission in the community.” The latter is the job of the public-health system, which prevents sickness in populations instead of merely treating it in individuals. That system pairs uneasily with a national temperament that views health as a matter of personal responsibility rather than a collective good.
  • “As public health did its job, it became a target” of budget cuts,
  • Today, the U.S. spends just 2.5 percent of its gigantic health-care budget on public health. Underfunded health departments were already struggling to deal with opioid addiction, climbing obesity rates, contaminated water, and easily preventable diseases. Last year saw the most measles cases since 1992. In 2018, the U.S. had 115,000 cases of syphilis and 580,000 cases of gonorrhea—numbers not seen in almost three decades. It has 1.7 million cases of chlamydia, the highest number ever recorded.
  • In May, Maryland Governor Larry Hogan asserted that his state would soon have enough people to trace 10,000 contacts every day. Last year, as Ebola tore through the Democratic Republic of Congo—a country with a quarter of Maryland’s wealth and an active war zone—local health workers and the WHO traced twice as many people.
  • Compared with the average wealthy nation, America spends nearly twice as much of its national wealth on health care, about a quarter of which is wasted on inefficient care, unnecessary treatments, and administrative chicanery. The U.S. gets little bang for its exorbitant buck. It has the lowest life-expectancy rate of comparable countries, the highest rates of chronic disease, and the fewest doctors per person. This profit-driven system has scant incentive to invest in spare beds, stockpiled supplies, peacetime drills, and layered contingency plans—the essence of pandemic preparedness. America’s hospitals have been pruned and stretched by market forces to run close to full capacity, with little ability to adapt in a crisis.
  • “We’re designed for discrete disasters” like mass shootings, traffic pileups, and hurricanes, says Esther Choo, an emergency physician at Oregon Health and Science University. The COVID‑19 pandemic is not a discrete disaster. It is a 50-state catastrophe that will likely continue at least until a vaccine is ready.
  • American hospitals operate on a just-in-time economy. They acquire the goods they need in the moment through labyrinthine supply chains that wrap around the world in tangled lines, from countries with cheap labor to richer nations like the U.S. The lines are invisible until they snap. About half of the world’s face masks, for example, are made in China, some of them in Hubei province. When that region became the pandemic epicenter, the mask supply shriveled just as global demand spiked. The Trump administration turned to a larder of medical supplies called the Strategic National Stockpile, only to find that the 100 million respirators and masks that had been dispersed during the 2009 flu pandemic were never replaced. Just 13 million respirators were left.
  • The supply of nasopharyngeal swabs that are used in every diagnostic test also ran low, because one of the largest manufacturers is based in Lombardy, Italy—initially the COVID‑19 capital of Europe. About 40 percent of critical-care drugs, including antibiotics and painkillers, became scarce because they depend on manufacturing lines that begin in China and India. Once a vaccine is ready, there might not be enough vials to put it in, because of the long-running global shortage of medical-grade glass—literally, a bottle-neck bottleneck.
  • As usual, health care was a matter of capitalism and connections. In New York, rich hospitals bought their way out of their protective-equipment shortfall, while neighbors in poorer, more diverse parts of the city rationed their supplies.
  • Travel bans make intuitive sense, because travel obviously enables the spread of a virus. But in practice, travel bans are woefully inefficient at restricting either travel or viruses. They prompt people to seek indirect routes via third-party countries, or to deliberately hide their symptoms. They are often porous: Trump’s included numerous exceptions, and allowed tens of thousands of people to enter from China. Ironically, they create travel: When Trump later announced a ban on flights from continental Europe, a surge of travelers packed America’s airports in a rush to beat the incoming restrictions. Travel bans may sometimes work for remote island nations, but in general they can only delay the spread of an epidemic—not stop it.
  • the indiscriminate lockdown was necessary only because America’s leaders wasted months of prep time. Deploying this blunt policy instrument came at enormous cost. Unemployment rose to 14.7 percent, the highest level since record-keeping began, in 1948. More than 26 million people lost their jobs, a catastrophe in a country that—uniquely and absurdly—ties health care to employment
  • In the middle of the greatest health and economic crises in generations, millions of Americans have found themselves disconnected from medical care and impoverished. They join the millions who have always lived that way.
  • Elderly people, already pushed to the fringes of society, were treated as acceptable losses. Women were more likely to lose jobs than men, and also shouldered extra burdens of child care and domestic work, while facing rising rates of domestic violence. In half of the states, people with dementia and intellectual disabilities faced policies that threatened to deny them access to lifesaving ventilators. Thousands of people endured months of COVID‑19 symptoms that resembled those of chronic postviral illnesses, only to be told that their devastating symptoms were in their head. Latinos were three times as likely to be infected as white people. Asian Americans faced racist abuse. Far from being a “great equalizer,” the pandemic fell unevenly upon the U.S., taking advantage of injustices that had been brewing throughout the nation’s history.
  • Of the 3.1 million Americans who still cannot afford health insurance in states where Medicaid has not been expanded, more than half are people of color, and 30 percent are Black.* This is no accident. In the decades after the Civil War, the white leaders of former slave states deliberately withheld health care from Black Americans, apportioning medicine more according to the logic of Jim Crow than Hippocrates. They built hospitals away from Black communities, segregated Black patients into separate wings, and blocked Black students from medical school. In the 20th century, they helped construct America’s system of private, employer-based insurance, which has kept many Black people from receiving adequate medical treatment. They fought every attempt to improve Black people’s access to health care, from the creation of Medicare and Medicaid in the ’60s to the passage of the Affordable Care Act in 2010.
  • A number of former slave states also have among the lowest investments in public health, the lowest quality of medical care, the highest proportions of Black citizens, and the greatest racial divides in health outcomes
  • As of early July, one in every 1,450 Black Americans had died from COVID‑19—a rate more than twice that of white Americans. That figure is both tragic and wholly expected given the mountain of medical disadvantages that Black people face
  • Native Americans were similarly vulnerable. A third of the people in the Navajo Nation can’t easily wash their hands, because they’ve been embroiled in long-running negotiations over the rights to the water on their own lands. Those with water must contend with runoff from uranium mines. Most live in cramped multigenerational homes, far from the few hospitals that service a 17-million-acre reservation. As of mid-May, the Navajo Nation had higher rates of COVID‑19 infections than any U.S. state.
  • Americans often misperceive historical inequities as personal failures
  • the largely unregulated, social-media-based communications infrastructure of the 21st century almost ensures that misinformation will proliferate fast. “In every outbreak throughout the existence of social media, from Zika to Ebola, conspiratorial communities immediately spread their content about how it’s all caused by some government or pharmaceutical company or Bill Gates,”
  • Rumors coursed through online platforms that are designed to keep users engaged, even if that means feeding them content that is polarizing or untrue. In a national crisis, when people need to act in concert, this is calamitous. “The social internet as a system is broken,” DiResta told me, and its faults are readily abused.
  • Like pandemics, infodemics quickly become uncontrollable unless caught early.
  • In 2016, when DiResta spoke with a CDC team about the threat of misinformation, “their response was: ‘ That’s interesting, but that’s just stuff that happens on the internet.’ ”
  • The WHO, the CDC, and the U.S. surgeon general urged people not to wear masks, hoping to preserve the limited stocks for health-care workers. These messages were offered without nuance or acknowledgement of uncertainty, so when they were reversed—the virus is worse than the flu; wear masks—the changes seemed like befuddling flip-flops.
  • the United States underperformed across the board, and its errors compounded. The dearth of tests allowed unconfirmed cases to create still more cases, which flooded the hospitals, which ran out of masks, which are necessary to limit the virus’s spread. Twitter amplified Trump’s misleading messages, which raised fear and anxiety among people, which led them to spend more time scouring for information on Twitter.
  • By tying career advancement to the publishing of papers, academia already creates incentives for scientists to do attention-grabbing but irreproducible work. The pandemic strengthened those incentives by prompting a rush of panicked research and promising ambitious scientists global attention.
  • In March, a small and severely flawed French study suggested that the antimalarial drug hydroxychloroquine could treat COVID‑19. Published in a minor journal, it likely would have been ignored a decade ago. But in 2020, it wended its way to Donald Trump via a chain of credulity that included Fox News, Elon Musk, and Dr. Oz. Trump spent months touting the drug as a miracle cure despite mounting evidence to the contrary, causing shortages for people who actually needed it to treat lupus and rheumatoid arthritis. The hydroxychloroquine story was muddied even further by a study published in a top medical journal, The Lancet, that claimed the drug was not effective and was potentially harmful. The paper relied on suspect data from a small analytics company called Surgisphere, and was retracted in June.**
  • Science famously self-corrects. But during the pandemic, the same urgent pace that has produced valuable knowledge at record speed has also sent sloppy claims around the world before anyone could even raise a skeptical eyebrow.
  • No one should be shocked that a liar who has made almost 20,000 false or misleading claims during his presidency would lie about whether the U.S. had the pandemic under control; that a racist who gave birth to birtherism would do little to stop a virus that was disproportionately killing Black people; that a xenophobe who presided over the creation of new immigrant-detention centers would order meatpacking plants with a substantial immigrant workforce to remain open; that a cruel man devoid of empathy would fail to calm fearful citizens; that a narcissist who cannot stand to be upstaged would refuse to tap the deep well of experts at his disposal; that a scion of nepotism would hand control of a shadow coronavirus task force to his unqualified son-in-law; that an armchair polymath would claim to have a “natural ability” at medicine and display it by wondering out loud about the curative potential of injecting disinfectant; that an egotist incapable of admitting failure would try to distract from his greatest one by blaming China, defunding the WHO, and promoting miracle drugs; or that a president who has been shielded by his party from any shred of accountability would say, when asked about the lack of testing, “I don’t take any responsibility at all.”
  • Trump is a comorbidity of the COVID‑19 pandemic. He isn’t solely responsible for America’s fiasco, but he is central to it. A pandemic demands the coordinated efforts of dozens of agencies. “In the best circumstances, it’s hard to make the bureaucracy move quickly,” Ron Klain said. “It moves if the president stands on a table and says, ‘Move quickly.’ But it really doesn’t move if he’s sitting at his desk saying it’s not a big deal.”
  • everyday Americans did more than the White House. By voluntarily agreeing to months of social distancing, they bought the country time, at substantial cost to their financial and mental well-being. Their sacrifice came with an implicit social contract—that the government would use the valuable time to mobilize an extraordinary, energetic effort to suppress the virus, as did the likes of Germany and Singapore. But the government did not, to the bafflement of health experts. “There are instances in history where humanity has really moved mountains to defeat infectious diseases,” says Caitlin Rivers, an epidemiologist at the Johns Hopkins Center for Health Security. “It’s appalling that we in the U.S. have not summoned that energy around COVID‑19.”
  • People suffered all the debilitating effects of a lockdown with few of the benefits. Most states felt compelled to reopen without accruing enough tests or contact tracers. In April and May, the nation was stuck on a terrible plateau, averaging 20,000 to 30,000 new cases every day. In June, the plateau again became an upward slope, soaring to record-breaking heights.
  • It is no coincidence that other powerful nations that elected populist leaders—Brazil, Russia, India, and the United Kingdom—also fumbled their response to COVID‑19. “When you have people elected based on undermining trust in the government, what happens when trust is what you need the most?”
  • Drawn to novelty, journalists gave oxygen to fringe anti-lockdown protests while most Americans quietly stayed home. They wrote up every incremental scientific claim, even those that hadn’t been verified or peer-reviewed.
  • The virus was never beaten in the spring, but many people, including Trump, pretended that it was. Every state reopened to varying degrees, and many subsequently saw record numbers of cases. After Arizona’s cases started climbing sharply at the end of May, Cara Christ, the director of the state’s health-services department, said, “We are not going to be able to stop the spread. And so we can’t stop living as well.” The virus may beg to differ.
  • The long wait for a vaccine will likely culminate in a predictable way: Many Americans will refuse to get it, and among those who want it, the most vulnerable will be last in line.
  • It is almost unheard-of for a public-health measure to go from zero to majority acceptance in less than half a year. But pandemics are rare situations when “people are desperate for guidelines and rules,” says Zoë McLaren, a health-policy professor at the University of Maryland at Baltimore County. The closest analogy is pregnancy, she says, which is “a time when women’s lives are changing, and they can absorb a ton of information. A pandemic is similar: People are actually paying attention, and learning.”
  • As the economy nose-dived, the health-care system ailed, and the government fumbled, belief in American exceptionalism declined. “Times of big social disruption call into question things we thought were normal and standard,” Redbird told me. “If our institutions fail us here, in what ways are they failing elsewhere?” And whom are they failing the most?
  • It is hard to stare directly at the biggest problems of our age. Pandemics, climate change, the sixth extinction of wildlife, food and water shortages—their scope is planetary, and their stakes are overwhelming. We have no choice, though, but to grapple with them. It is now abundantly clear what happens when global disasters collide with historical negligence.
  • America would be wise to help reverse the ruination of the natural world, a process that continues to shunt animal diseases into human bodies. It should strive to prevent sickness instead of profiting from it. It should build a health-care system that prizes resilience over brittle efficiency, and an information system that favors light over heat. It should rebuild its international alliances, its social safety net, and its trust in empiricism. It should address the health inequities that flow from its history. Not least, it should elect leaders with sound judgment, high character, and respect for science, logic, and reason.
Ed Webb

The Islamic State Isn't Behind Syria's Amphetamine Trade, But the Regime Could Be - 0 views

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  • Scientists first produced Captagon, the brand name of the drug fenethylline, in the 1960s to treat depression and children with attention deficit hyperactivity disorder. Two decades later, the World Health Organization banned the substance due its high potential for addiction, abuse, and other adverse health effects. But counterfeit Captagon—which is sometimes just a cocktail of amphetamines with no fenethylline—remains in demand on the black market in the Middle East.
  • pills intercepted in Salerno arrived on three ships from Latakia, a Syrian port, and Italian police quickly announced that the Islamic State was responsible for their production and shipment—allegedly to fund its global terrorism operations.
  • Global media outlets disseminated the information provided by the Italian police without questioning it, replicating misinformation without considering how a scattered group of Islamic State members could pull off such an operation—but the truth is, they probably didn’t
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  • more likely that the regime of Syrian President Bashar al-Assad has a hand in producing Captagon, reaping a profit that it can invest into its armed campaigns against civilians and damaging the health of many Syrians who are now addicted to amphetamines after years of war
  • “When Syria invaded Lebanon in the ’90s there were many reports showing the Syrian military were aiding and abetting hashish and opium production in the Bekaa Valley,”
  • Captagon production flourished in Syria after 2013, when a crackdown in neighboring Lebanon likely forced Hezbollah to relocate its drug production operations next door. The shift came at an opportune time for the Syrian regime, as it needed money to fund its military campaign against rebel groups
  • The majority of Syria’s Captagon production sites are in regime-held areas, according to Abu Ja’far, a former truck driver who worked between Homs, Rif-Dimashq, and Aleppo. “You only need some deserted homes and a few workers supervised by someone with strong connections,”
  • International organizations are unable to conduct research on the ground, meaning there is no concrete evidence linking the Assad regime to the Captagon trade. But sources say that strong protection would be required to produce, sell, and export the drugs from regime-held areas. “It was always possible in a country at war that those best placed to safely manufacture a drug in large quantities would be people in the regime … or in areas the regime were guaranteeing security,”
  • Last year, more than 33 million Captagon pills were seized in Greece after being shipped from regime-held Latakia. And in April this year, Saudi customs seized more than 44 million pills hidden in tea packaging from a company close to the Assad family.
  • At the height of its territorial control, the Islamic State was involved in the black market, trading looted antiquities, arms, and oil. But there is little evidence that the group ever produced Captagon—even if individual fighters used the drug on the battlefield. It would not have been sanctioned at the institutional level because of the group’s Salafism: Islamic State leaders punished people caught smoking or selling tobacco, making it unlikely they condoned the manufacturing of amphetamines.
  • Saudi Arabia has long been the No. 1 consumer of Captagon, which is popular among young and affluent partygoers. As conflict drags on in Libya, it is also possible the large shipment was destined for the port of Benghazi, with Europe as a transit point.
  • While much of the Captagon produced in Syria is destined for overseas markets, Syrians themselves suffer some of the worst damage from the trade. The worst-quality Captagon tablets are sold within Syria for as cheap as $1 per pill
  • Captagon is known to inhibit tiredness, hunger, and fear. But its use is now common among all demographics in Syria, not just fighters. The most common side effects include extreme depression, insomnia, malnutrition, and heart and blood toxicity
Ed Webb

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

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  • 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

China: Soon the most visible victim of deglobalisation - Al Jazeera English - 1 views

www.aljazeera.com/...alisation-161016052547323.html

China economy globalization trade investment FDI economics analysis

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  • China's exports hit an all-time high in December, 2015 and (ignoring season fluctuations) have been declining ever since. China is increasingly turning inward for growth - and having trouble finding it
  • Most other countries export intermediate goods that are just parts and components of the finished goods that consumers actually buy. China more often exports the finished goods
  • both Chinese and global exports are falling
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  • Annual global FDI is down roughly 50 percent from its 2007 peak of just over $3 trillion. It's still much larger than it was in the 1990s or earlier decades, but global FDI has stabilised at roughly the levels of the early 2000s.
  • the roots of today's global economy really go back to 1973, when the United States went off the gold standard and most countries moved from fixed to floating exchange rates. Floating exchange rates meant that the era of managed trade was over. The global economy moved into a new phase driven by market forces. The oil exporting countries of the Gulf were the first to benefit as the market price for oil quadrupled between 1973 and 1974. China came to the party just a few years later. Since then the global economy has become more and more open. After the currency liberalisation of 1973 came a huge increase in international trade and then, in the 1990s, in foreign investment. Both trade and investment peaked in 2007-2008
  • These days China has to compete with India, Southeast Asia, Latin America and even Africa for scarce foreign investment dollars
  • China's export-oriented garment industry employs about 10 million people. These jobs are increasingly threatened as companies move production to lower-cost countries such as Vietnam
  • China has been the most visible beneficiary of the increasing globalisation of the global economy. Soon it may be the most visible victim of deglobalisation
Ed Webb

IS 'producing weaponised mustard gas': Watchdog | Middle East Eye - 0 views

www.middleeasteye.net/...ns-use-syria-august-1866069973

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shared by Ed Webb on 18 Nov 16 - No Cached
  • The global watchdog tasked with destroying chemical weapons is probing more than 20 reports of the alleged use of toxic weapons in Syria since August, its chief told the AFP news agency on Friday.And, in what he called an "extremely worrying" development, Ahmet Uzumcu revealed that the Organisation for the Prohibition of Chemical Weapons (OPCW) believes the so-called Islamic State (IS) group has manufactured its own mustard gas for use in Syria and Iraq.
  • The OPCW is already "collecting information and analysing" it, the OPCW director general said, to see if the allegations "are credible or not in order to deepen our investigation"."The number (of allegations) is quite high. I counted more than 20," said Uzumcu, revealing that even on Thursday the Syrian authorities had sent to the OPCW fresh reports of chemical weapons use against them.
  • Samples of mustard gas taken from attacks in Syria and Iraq have now been analysed by the OPCW's dedicated laboratories and "the findings do suggest that this substance may have been produced by IS itself," said Uzumcu.It was "poor quality, but still harmful ... and it was weaponised so it's extremely worrying," the OPCW chief said."Especially given the fact that there are several foreign fighters in those countries who may go back to their countries of origin one day. This requires a high-degree of vigilance within our countries," he warned.
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  • "I don't think we will be able to investigate them all," Uzumcu said, highlighting the difficulties of working in a conflict zone.
Ed Webb

Chinese TV Host Says Regime Nearly Bankrupt | Business & Economy | China | Epoch Times - 0 views

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China economy analysis recession

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  • Lang’s assessment that the regime is bankrupt was based on five conjectures. Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly. Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang. Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession. Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010). Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 51.6 percent, Lang said. Once the “economic tsunami” starts, the regime will lose credibility and China will become the poorest country in the world, Lang said. Several commentators have expressed broad agreement with Lang’s analysis.
Matthew Ferry

Benjamin Friedman | How Washington Left the Public Behind on Foreign Policy | Foreign A... - 0 views

www.foreignaffairs.com/...he-state-of-the-union-is-wrong

Foreign Affairs SOTU foreign policy

shared by Matthew Ferry on 29 Jan 14 - No Cached
  • So political leaders -- those in Congress and those vying for the White House -- can generally buck the public on foreign policy without losing votes. It is not that politicians entirely ignore voters’ foreign policy views. But, at least compared with tax and entitlement issues, politicians have considerable rope to pursue their own agendas. Only in rare circumstances, such as very unpopular wars, do voters hold politicians to account on foreign policy.
  • No state menaces U.S. borders or regularly checks U.S. military actions abroad, as the Soviet Union once did. Trade accords matter a good deal for certain industries, but most of us barely notice them. For the majority of Americans, even the war in Iraq brought little worse than marginally higher tax rates and unsettling TV images. With bigger things to worry about, such as job security and health care, Americans have little incentive to inform themselves about foreign policies; it is rational for them to remain ignorant. 
  • Realists and other reliable skeptics of intervention are essentially confined to the academy, while true isolationism has become virtually extinct in Washington.
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  • By the Cold War’s end, realists and other advocates of restraint had been marginalized, despite the fact that their views remained popular among the public; the interventionists, on both the left and right, had successfully established a new elite foreign policy consensus. To this day, anyone seeking prominence as a beltway foreign policy wonk, or a future political appointment, quickly learns that it is necessary to hew to the interventionist conventional wisdom.
  • The Cold War provided the United States with a permanent set of private military contractors and a vast domestic infrastructure of military bases. Regions that were previously indifferent to foreign events, or even flat-out isolationist, developed a direct economic interest in military manufacturing.
Ed Webb

Environment Magazine - September/October 2013 - 0 views

www.environmentmagazine.org/...case-of-water-full.html

climate environment water security US USA military

shared by Ed Webb on 26 Feb 14 - No Cached
  • Environmental security is still viewed in Western countries that see climate change as a “threat multiplier” in already conflict-sensitive regions differently than in developing countries that consider security implications with regional neighbors when responding to extreme events.
  • operational risk analyses that focus on environmental systems supporting overall stability
  • The most crucial of these resources and critical nodes is water.
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  • In 2007, Congress placed language in the National Defense Authorization Act that requires the military to consider effects of climate change on facilities, capabilities, and missions
  • The challenge with integrating climate change hazards with military planning has been that “climate change” is at the same time too general a term of reference yet is also too limiting
  • Many systems rely on predictable delivery of water, and too much or too little at the wrong time can spell catastrophe for agriculture, power, transport, or other critical systems linked around the globe
  • through 2040, the best solutions to water problems are expected to be found in improved management strategies such as pricing, allocation decisions, and addressing international trade in “virtual water”—“water consumed in the manufacturing or growing of an export product”
  • the Chinese drive for water security may spark a series of actions that others may interpret as threats even while inside China they may be technical responses to very real risks
  • The regional security difficulty lies not only in Tibetan politics, but in the fact that the Yarlung-Tsangpo becomes the Brahmaputra once it crosses into India in Arunachal Pradesh, a territory disputed by India and China and heavily militarized. Diversions affecting the Brahmaputra would imperil India's own water security, including hydropower and irrigation projects, and would have further impacts downstream in Bangladesh. Although China may see its water projects as increasing its own security, India and Bangladesh view the Chinese actions as a direct threat to their national security. Specifically, China's actions have the potential to increase the risk of water-related population stresses, cross-border tension, and migration and agricultural failures for perhaps a billion people in India and Bangladesh, and its actions may be interpreted as a security threat by India
  • empirical cases of conflict between states directly over water supplies are historically rare
  • The connections between extreme heat/drought in Russia in the summer of 2010 and the subsequent Arab Spring revolts in late 2010 are an example of where changes in one system (in this case, water/moisture for food production) may contribute to existing instability in a far different geographical region.
  • The topic of environmental security also raises questions about what or who is driving policy priorities and how science is (mis)communicated to policymakers.
  • Complex risk assessments must take into account the multidimensional and interdisciplinary nature of the strategic environment. Providing adequate resources for these complex assessments requires knowledge not only of climate and weather systems, but of particular geographical, cultural, and socioeconomic factors that make environmental hazards unique to each region and community
Ed Webb

Climate Risk Atlas 2014 - 0 views

maplecroft.com/...sks-2025-maplecroft-risk-atlas

IR climate economy

shared by Ed Webb on 31 Oct 13 - Cached
  • 31% of global economic output will be based in countries facing ‘high’ or ‘extreme risks’ from the impacts of climate change by the year 2025 – a 50% increase on current levels
  • The economic impacts of climate change will be most keenly felt by Bangladesh (1st and most at risk), Guinea-Bissau (2nd), Sierra Leone (3rd), Haiti (4th), South Sudan (5th), Nigeria (6th), DR Congo (7th), Cambodia (8th), Philippines (9th) and Ethiopia (10th), which make up the 10 most at risk countries out of the 193 rated by the CCVI. However, other important growth markets at risk include: India (20th), Pakistan (24th) and Viet Nam (26th) in the ‘extreme risk’ category, in addition to Indonesia (38th), Thailand (45th), Kenya (56th) and, most significantly, China (61st), all classified at ‘high risk.’
  • three factors: exposure to extreme climate-related events, including sea level rise and future changes in temperature, precipitation and specific humidity; the sensitivity of populations, in terms of health, education, agricultural dependence and available infrastructure; and the adaptive capacity of countries to combat the impacts of climate change, which encompasses, R&D, economic factors, resource security and the effectiveness of government
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  • According to the CCVI’s sub-national calculations, of the 50 cities studied, five present an ‘extreme risk’ – Dhaka in Bangladesh; Mumbai and Kolkata in India; Manila in the Philippines and Thailand’s Bangkok – while only two London and Paris were classified as ‘low risk.’ Shenzhen and the Pearl River Delta, which encompasses the cities of Guangzhou, Dongguan and Foshan and make up China’s manufacturing heartland, are among the most exposed to physical risks from extreme climate-related events.
Ed Webb

Of Turks and Armenians by Artin H. Arslanian* - 0 views

www.todayszaman.com/...detaylar.do

history memory Turkey Armenia genocide opinion

shared by Ed Webb on 22 Jul 10 - Cached
  • I came to understand that the pursuit of national and individual interests of political leaders is the driving force of international relations. Sure, in recent years several Western governments have officially recognized the Armenian genocide. However, domestic political considerations or foreign policy objectives (like the goal of keeping Turkey out of the EU) rather than a commitment to rectifying an historical injustice, appear to be the primary reasons for these actions. After all, why had these governments ignored the Armenian genocide until now?
  • Focusing all my energies to the task of forcing the Turkish government to reverse its policy of denial is self-defeating and perpetuates my emotional and intellectual self-incarceration. I have shed the culture of victimhood and freed myself from the oppressive weight of our history.
  • it is Turkey’s problem. Let the Turks come to terms with their history by freeing it from their self-manufactured myths, reassess their past and transform their state from an ethnically exclusive home for Turks alone into an inclusive one for different ethnic and religious groups who consider themselves the citizens of Turkey. But while Dink was mourned by Armenians all over the world and even by a large number of Turks, his message -- as far as the Armenian diasporas are concerned -- has fallen on deaf ears.
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