Showing posts from category development.
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Brookings’ “Taking Stock of the Youth Challenge in the Middle East”
›Samantha Constant and Mary Kraetsch of the Brookings Institution have created a handy visual aid to understanding the Middle East’s demographics. The interactive flash graphic shows select economic and demographic information as you scroll over each country, including GDP per capita, youth percentage of the population, secondary school enrollment rate, and unemployment figures. Clicking on each country brings up a more detailed fact sheet that breaks down economic, education, and demographic statistics.
The companion write-up to the map stresses the importance of these figures to youth-inclusive development. Citing the 2009 UN Arab Human Development Report, the authors point out that the region will need to create about 51 million jobs by 2020 to account for youth entering the work force and already high unemployment rates.
The report does however shy away from some of the Middle East’s most difficult demographic challenges. Iraq and the West Bank are mentioned as areas that will continue to have large youth bulges, but Yemen, which has far and away the most troubling demographics in the region, is not mentioned at all. Adding “total fertility rate” as a statistic, which shows the average number of children born to an average woman over her lifetime, might illustrate these trouble areas more clearly. As illustrated by data from the Population Reference Bureau, Yemen (5.5), the Palestinian Territory (4.6), and Iraq (4.4) all have noticeably higher total fertility rates than other countries in the region, which helps explain why their demographic problems will continue.
The inclusion of total fertility rates would also help make a stronger argument for closer attention to be paid to women’s rights issues, as generally better women’s rights translates to lower total fertility rates, which help draw down youth bulges over time. The report only briefly mentions that more research is needed to create better paths for young women to become productive members of society with “greater career opportunities beyond traditional roles.”
The map does mention that information will be updated on a regular basis so it is worth checking back to see what it added to this useful primer.
Sources: The Brookings Institution, Population Reference Bureau.
Interactive Map: “Understanding the Generation in Waiting” courtesy of The Brookings Institution. -
Trillions of Dollars of Minerals? Misusing Geology and Economics to the Detriment of Policy
›Monday’s New York Times article, “U.S. Identifies Vast Mineral Riches in Afghanistan,” triggered a memory of a 70s-era Popular Science magazine cover that screamed “$3 trillion of minerals on the ocean floor!” That article, along with speeches from promoters of deep seabed mining, built up the anticipation that there were windfall profits to be had from the deep seabed. From this gross misuse of geologic speculation came all the difficulties with the negotiations of Part XI of the Law of the Sea Convention — and the United States’ continuing struggle to join the convention.
One of my roles on the U.S. delegation to the Law of the Sea Conference in 1979 and 1980 was to play defense against the misuse of geology and mineral economics in the negotiations, both by countries on the other side of the negotiating table and by seabed mining promoters at home. Part of that task was to gather and accurately “translate” the scientific and economic data from mineral statistics agencies, including the U.S. Bureau of Mines (since incorporated into the U.S. Geological Survey [USGS]), for policymakers and diplomats.
At times I felt like a goalie in the Part XI negotiations, blocking shots being taken by the forwards of the other teams that were promoting seabed mining as an economic bonanza. Unfortunately, by that time, too many groups had a vested interest in portraying the profitability of deep seabed mining and we couldn’t (yet) turn back the clock to a more reasonable approach.
When I read this week’s article in The New York Times, I had the same feeling of policy being manipulated by misuse of geologic data. With some help, I located the original DOD powerpoint presentation. The differences illustrate how science and economics can be misused to cause extensive damage in the policy process—a lesson I learned from the Law of the Sea negotiations.
The New York Times left out two important items from the DOD graphic accompanying the article:
First, the word “undiscovered” was left out; the original phrase reads “known and estimated ‘undiscovered’ resources anticipated by USGS and AGS and using prices as of 12/09.” Not only does that hide the important fact that the resources cited have not yet been discovered, it obscures that the estimates are largely defined by the USGS as either “hypothetical” and “speculative” resources — not the kind of numbers on which to stake a strategy for war and peace.
Second, the article omitted a caveat from DOD’s original powerpoint slide: “USGS agrees with the assertion: ‘At least 70 percent of Afghanistan’s mineral resources are yet to be identified.’”
Therefore, less than 30 percent of DOD’s estimated value is based on tangible evidence of deposits and 70 percent of the estimate is based on hypothetical or speculative resources of uncertain grade and abundance.
The value depends not just on metal content but also on the type of mineral, the grade (percent metal content) in the deposit, the size of the deposit, the distance from fuel and power, the amount of earth that covers the deposit, among other factors. If this report had geological merit as a USGS report, it would have said how much ore was in place at what grade.
Assigning a value to as yet undiscovered deposits is an effective way to influence a policymaker in a powerpoint presentation or generate a headline story from a reporter who has no experience with the terms of art used by geologists. But it has little to do with reality.
So, I drafted these points in response to the story in The New York Times:- According to the USGS, at least 70 percent of Afghanistan’s mineral wealth as estimated by the DOD is hypothetical or speculative, based on geologic theories, not measurement.
- The value estimates are grossly exaggerated by including sub-economic resources because they fail to consider capital and operating costs of recovery and processing to recover ore and convert it to finished metal.
- The DOD assessment fails to note whether the known or hypothetical deposits in Afghanistan are capable of competing economically with known and hypothetical deposits elsewhere in the world.
- Seventy-six percent of the estimated value comes from iron and copper, both of which are already found and produced in many locations around the world in commercially viable mines.
- The DOD values fail to distinguish between economically viable deposits and those that cannot be profitable in the foreseeable future, or to note those that are entirely speculative.
- The headline value of nearly $1 trillion is grossly in error and misinforms policymakers as to the economic potential of mineral deposits in Afghanistan.
Caitlyn L. Antrim is the executive director of the Rule of Law Committee for the Oceans. This article originally appeared in The Ocean Law Daily. To subscribe, please email caitlyn@oceanlaw.org.
Read more on Afghanistan’s mineral wealth and transparency initiatives on The New Security Beat.
Photo Credit: “Sunrise in Afghanistan,” courtesy of flickr user The U.S. Army. -
Sustainable Development
›Are Women the Key to Sustainable Development?, by Candice Stevens and appearing in Boston University’s Sustainable Development Insights series, asks whether gender-conscious development strategies are the missing link in the three pillars–social, economic, and environmental–of sustainable development. She points out that “An increasing number of studies indicate that gender inequalities are extracting high economic costs and leading to social inequities and environmental degradation around the world.” In the policy world gender-conscious initiatives are often more effective as well. “United Nations and World Bank studies show that focusing on women in development assistance and poverty reduction strategies leads to faster economic growth than ‘gender neutral’ approaches.” Stevens finds that achieving greater gender parity may be the key to better governance, increased growth, and a safer environment.The Role of Cities in Sustainable Development, by David Satherwaite and also appearing in Boston University’s Sustainable Development Insights series, argues that traditional depictions of cities as dirty and unsustainable are inaccurate. Instead, “…with the right innovation and incentives in place, cities can allow high living standards to be combined with resource consumption that is much lower than the norm in most cities today,” he finds. Satherwaite contends that high-density living arrangements can reduce per capita energy consumption, transportation emissions, and costs of public service provisions like hospitals and schools. However, he warns that none of these potential advantages are guaranteed, and city planners must utilize effective local governance in order to make cities safe, clean, and sustainable. -
Protect Nature to Protect Us: Biodiversity and Adaptation to Climate Change
›June 17, 2010 // By Dan Asin“We believe that changes in biodiversity, either through local extinction or biological invasions, is the single most important and dramatic problem in contemporary ecology,” reads the mission of the Naeem Lab, led by Professor Shahid Naeem of Columbia University and editor of Biodiversity, Ecosystems Functioning, and Human Wellbeing: An Ecological and Economic Perspective. As Naeem told a group of USAID employees last week, this problem is even more important today, because biodiversity is a key factor in determining the resilience of life–and could be an important ally in the fight against the impacts of climate change.
At the talk, Naeem described an experiment funded by the National Science Foundation that tested the effect of carbon dioxide, nitrogen, and diversity of plant species on rates of plant growth. The scientists found both carbon dioxide and nitrogen exposure to increase plant growth, but the impact of biodiversity to be even greater.
In the monoculture trials, exposure to carbon dioxide, nitrogen, and both increased vegetation growth by by 7 percent, 2 percent, and 17 percent, respectively. When the plot was expanded to include 16 species, however, rates of plant growth jumped to 22, 25, and 36 percent.
Real-World Implications
Naeem’s message aligned with an earlier World Bank report, Biodiversity, Climate Change, and Adaptation, which in 2008 noted that “Climate change is already impacting on ecosystems and livelihoods, but enhanced protection and management of biological resources can mitigate these impacts and contribute to solutions.”
The report, which examines the importance of biodiversity to mitigating and adapting to climate change, cites real-world examples, such an analysis of a forest management project in Madagascar that would cost $97 million but generate $150-180 million in revenue from direct payments for conservation activities, ecotourism, and watershed protection.
Another example focuses on a farmer in South Africa’s Bokkeveld Plateau, who 30 years ago switched from cultivating cereals and pasture crops to nurturing indigenous vegetation. “With the diversity of indigenous plants, McGregor was able to maintain productivity for much longer through the dry summer season,” the report says. Further, he was able to eliminate the need for pesticides and increase the productivity of sheep grazing. The flowering of the natural plants attracted tourists to his farm, generating greater income for both himself and his district, and has since become South Africa’s ninth botanical garden.
Bringing Science to Bear on Policy
Still, Naeem said that although the scientific evidence connecting biodiversity, resilience, and adaptation has long been established, it is in large part failing to affect environmental and development policy. Naeem said scientists have completed their leg of the race but aren’t able to reach the policymakers who need to carry-on the baton. Along the chain connecting research and policy-making the message becomes lost or diluted.
“How do we translate the science?” Naeem asked the USAID practitioners in the audience. The knowledge of biodiversity’s important role in climate adaptation is available, but how can scientists ensure that it impacts policy? Members of the audience cited both Congressional funding mandates and departmental silos as significant barriers to efforts to address the link between biodiversity and adaptation.
One promising avenue could be programs that already work across departmental silos to integrate environment and health initiatives in areas of the world with high biodiversity. These population-health-environment (PHE) programs, which seek to preserve biodiversity while improving community livelihoods and human health, could be effective mechanisms for exploring the contribution of biodiversity to climate adaptation.
Photo credit: Wildflowers bloom in Namaqualand, South Africa, courtesy Flickr user Martin Heigan. Near the Bokkeveld Plateau, the wildflowers in the two regions are resilient to changes in rainfall and temperature patterns and each year attract tourists from all over the globe. -
Defusing the Bomb: Overcoming Pakistan’s Population Challenge
›According to the UN’s latest mid-range demographic projections for Pakistan, the country’s population–currently about 185 million–will rise to 335 million by 2050. This explosive increase, however, represents the best-case scenario: Should fertility rates remain constant, the UN estimates this figure could approach 460 million. Such soaring population growth, coupled with youthful demographics, a dismal education system, high unemployment, and a troubled economy, pose great risks for Pakistan. Predictably, many observers depict Pakistan’s population situation as a ticking time bomb.
At the same time, some demographers contend that the country’s population profile can potentially bring great benefits to the country. If young Pakistanis can be properly educated and successfully absorbed into the labor force, such experts explain, then the country could experience a “demographic dividend” that boosts social well-being and sparks economic growth. On June 9, the Wilson Center’s Asia Program, Environmental Change and Security Program, and Comparative Urban Studies Project, along with the Karachi-based Fellowship Fund for Pakistan, hosted a day-long conference to examine both the challenges and opportunities of Pakistan’s demographics, and to discuss how best to tackle the former and maximize the latter.
Pakistan at a Crossroads
In her opening address, Zeba A. Sathar of the Population Council declared that Pakistan is “at a crossroads.” Demography will play a key role in determining the country’s future trajectory, she said, yet there is presently little discussion about demographics in Pakistan. Sathar’s presentation traced Pakistan’s recent demographic trends. Despite its high population growth, Pakistan’s fertility rates have actually been in decline since the early 1990s–a fact that Sathar attributed to progressively higher ages at marriage (for both men and women), but also to the “reality” of abortion. However, Pakistan’s pace of fertility decline has slowed in the last few years–a consequence, Sathar argued, of Islamabad’s failure to promote social development (particularly education) and of the international donor community’s prioritizing of HIV/AIDS funding over that of family planning since 2000. Sathar concluded that achieving Pakistan’s “demographic dreams” will require more educational and employment opportunities (particularly for women) and better access to family planning in rural areas.
In the following panel, Wilson Center Senior Scholar Shahid Javed Burki noted the long-standing failure of demographers and economists in Pakistan to work together on the country’s population issues. This failure, Burki asserted, has resulted in poor choices and bad policy. He also criticized officials and scholars for being reactive in their population proposals, rather than proactive. Burki emphasized that good policy choices can produce favorable results. If, for instance, the population policies launched in Pakistan’s early decades had been sustained to the present, the country today would have 30 million fewer people. Similarly, had Pakistan followed the Bangladeshi approach and concentrated on the economic empowerment of women, today there would be more than 40 million fewer Pakistanis. Good policies matter, Burki repeatedly asserted, and Pakistan’s large and growing population, if dealt with wisely, can be an asset rather than a burden.
Development Through the Bangladeshi Model and Education
Like Burki, Yasmeen Sabeeh Qazi of the Packard Foundation pointed to Bangladesh as a relative success story. She highlighted Bangladesh’s reproductive health services system, which has served to increase the health of Bangladeshis and reduce their poverty. Indonesia and Iran, whose fertility rates are one-half Pakistan’s, provide other examples in the Muslim world where official policy has made a significant difference. Qazi’s presentation emphasized the linkages between family planning, reproductive health, and development. Noting that one-third of pregnancies in Pakistan are unplanned, she underscored the correlation between smaller family size and higher gross national income. She urged the government to fashion a population policy that expands access to reproductive health services, strengthens the health system generally, promotes education (especially for girls), and creates more jobs.
Moeed Yusuf of the U.S. Institute of Peace examined the prospects for radicalization of Pakistan’s youth. Pakistan’s stratified education system, Yusuf cautioned, is not training productive, employable members of society. Only graduates of elite private schools or of foreign schools are prepared for the economy of the 21st century. Meanwhile, the economy is not producing the quality jobs the young expect, leading to an “expectation-reality disconnect” that fosters not only un- or underemployment, but also anger and alienation. Moreover, the state, by deliberately cultivating the ultra-right elements in Pakistani society who most want to radicalize the country’s youth, is part of the problem. Still, Yusuf added, echoing the hopefulness of other speakers, it is not too late. These disturbing trends can be reversed, with help from outside friends like the United States, which, Yusuf counseled, should focus on assisting Pakistan’s education system, support rural private schools, and allow more Pakistani students to study in the United States.
Plugging Public Sector Holes with Private Initiatives
Saba Gul Khattak focused her luncheon address on the work of the Pakistan government’s Planning Commission, of which she is a member. In recent years, Pakistan’s population programs have been devolved from the federal to the provincial and sub-provincial levels. This decentralization, she averred, has opened the way for a genuine reform agenda. But it has also contributed to a situation where no one at the federal level feels any “ownership” over the country’s population programs. Implementation has always been the most vulnerable point in the policy process–and the lack of “ownership” only accentuates this problem today. Khattak emphasized the linkages between population, health, education, and development. Today, she asserted, children are seen by their parents as a source of old age security. Only when the government fills this void through the establishment of an effective social security structure will Pakistan be able to reduce its fertility rates. Development must accompany a truly effective population program.
In the afternoon panel, Sohail Agha of Population Services International discussed the role of the private sector in family planning in Pakistan. He argued that this sector has made a “substantial contribution” to Pakistan’s increased use of condoms: In 2006-07, a period when condom use spiked by nearly 8 percent, about 80 percent of this increase was covered by contraceptives provided by the private sector. Additionally, he noted that a 2009 survey found that urban Pakistanis exposed to social marketing campaigns about condom utilization increased their use of the contraceptive by 10 percent. Furthermore, he described private-sector-led health financing plans for women’s fertilization–a method of contraception that, like condoms, has increased over the last 30 years in Pakistan.
Engaging Youth and Political and Religious Leaders
Shazia Khawar of the British Council discussed the “Next Generation” report, a 2009 Council study about Pakistan’s youth. The report, based on a survey of 1,500 young people across both rural and urban Pakistan, concludes that young Pakistanis are deeply disillusioned about their country and its institutions, with three-quarters of those surveyed saying they regard themselves as “primarily” Muslims, not Pakistanis. The report’s “critical point,” said Khawar, is that Pakistani youth participation in policy development is nonexistent. To this end, the British Council has spearheaded several initiatives to engage the country’s youth in Pakistani politics and to spark dialogue between young Pakistanis and policymakers. Khawar concluded, however, that success is possible only if Pakistan’s top political leaders “pledge themselves to this agenda.”
Mehtab S. Karim of the Pew Research Center offered a comparative perspective, discussing demographics in the broader Muslim world, with particular emphasis on Bangladesh and Iran. Why, he asked, has Pakistan experienced less fertility decline than most of its fellow Muslim-majority nations? He suggested that the answer lies in the failure of Pakistan’s political and religious leaders to make early and sustained commitments to family planning. In Bangladesh, he explained, the country’s very first government made lower population growth rates a “prime goal.” And in Iran, spiritual leader Ayatollah Khomeini issued a fatwa in support of contraceptive use soon after the Islamic Revolution. Yet in Pakistan, according to Karim, religious figures have consistently opposed Islamabad’s family planning efforts, and the government has proven unwilling or unable to combat this resistance.
Scott Radloff of USAID discussed his agency’s family planning and reproductive health (FP/RH) projects in Pakistan. FP/RH aid to Pakistan was largely cut off during much of the 1990s due to the Pressler Amendment–a 1985 modification to the U.S. Foreign Assistance Act that banned most U.S. military and economic assistance to Pakistan unless the U.S. president certified that Pakistan had no nuclear weapons. President George W. Bush waived this prohibition in 2001, and since then USAID FP/RH assistance has risen to nearly $45 million. Current interventions focus on strengthening services within Pakistan’s Ministry of Health and Ministry of Population Welfare; improving contraceptive supplies and logistics; expanding community-based services; and increasing awareness and commitment, including among religious leaders.
Participants concurred that Pakistan’s demographic situation is fraught with risk. Yet they also highlighted a series of hopeful signs. Yusuf noted the absence of an “imminent” danger of youth radicalization; Khawar pointed to the testimonies of “many young leaders determined to do their part” that flow from the “Next Generation” report; and both Karim and Qazi cited Bangladesh and Iran as proof that successful family planning programs are possible even in countries marked by deep poverty or conservative Islam. The presenters were also in accord about the necessary policies moving forward: more extensive family planning and reproductive health services, better education, and more job opportunities (particularly for women). At the same time, speakers repeatedly underscored the profound challenges facing the implementation of such policies. Still, for all the talk about major obstacles and challenges, there was recognition that more modest and simple steps can be taken as well–such as promoting more discussion about demographics within Pakistan, and especially among experts from different disciplines.
Michael Kugelman is program associate and Robert M. Hathaway is director of the Wilson Center’s Asia Program.
Photo credit: Traffic in downtown Karachi, courtesy Flickr user Ali Adnan Qazalbash. -
Afghanistan’s Mineral Wealth: Gold Mine, Curse, or Illusion?
›June 15, 2010 // By Schuyler NullAccording to The New York Times, U.S. officials have discovered a veritable bonanza of heavy metals and rare earth minerals in Afghanistan that have the potential “to fundamentally alter the Afghan economy and perhaps the Afghan war itself”:The previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the United States officials believe.
Reaction to the announcement has been mixed, with both Foreign Policy and Wired bloggers expressing skepticism about the timing of the announcement – in the midst of a difficult period of the war – and pointing out that the “discovery” is old news.
Others have expressed hope that the find, worth an estimated $1 trillion, might provide an injection of much-needed capital into one of the world’s worst economies. Environmental security expert Saleem Ali of the University of Vermont told Public Radio International’s The World that “there’s an opportunity now for the country to develop outside of a predominantly drug-dependent economy and if properly managed the minerals could provide a catalyst for all kinds of other activities as well.”
Afghanistan’s rare earth minerals in particular might prove to be extremely valuable as global demand continues to grow for these critical components of renewable energy technology and advanced electronics. The New York Times reports that an internal Pentagon memo says Afghanistan has the potential to become the “Saudi Arabia of lithium”:Just this month, American geologists working with the Pentagon team have been conducting ground surveys on dry salt lakes in western Afghanistan where they believe there are large deposits of lithium. Pentagon officials said that their initial analysis at one location in Ghazni Province showed the potential for lithium deposits as large of those of Bolivia, which now has the world’s largest known lithium reserves.
The existence of mineral reserves in Afghanistan is not new news, nor is foreign interest in them (see our coverage of Chinese copper investments at Aynak earlier this year). But the size of these resources warrants attention and raises new questions about the possibility of the unstable country falling victim to the natural resource curse – remaining mired in poverty while generating billions of dollars for an elite few.
Mineral wealth has a long history of fueling conflict in unstable countries, such as Sierra Leone, Nigeria, and the Democratic Republic of Congo. The DRC’s mining laws – which, like Afghanistan’s, were designed by the World Bank – have not prevented violent struggle to control the country’s valuable resources, as described by John Katunga in ECSP Report 12.
How can Afghanistan’s newly discovered mineral resources be developed without funding insurgents or fueling new conflicts? USAID’s Minerals and Conflict Toolkit offers a start with a set of recommendations and discrete steps that development agencies should take to avoid exacerbating the links between mining, valuable resources, and violent conflict.
Stay tuned for more analysis on Afghanistan’s development, resource curse dynamics, and what this all means for the continuing conflict.
Sources: Foreign Policy, National Public Radio, The New York Times, Public Radio International, Wired.
Photo Credit: “Remote Sensing Survey 2006” courtesy of the U.S. Geological Survey. -
‘The Plundered Planet’: A Discussion With Paul Collier
›Who owns the planet’s natural wealth found underwater, below ground, and in the air? How do we reconcile our use of these assets with that of future generations? Such questions are the subject of Oxford Professor Paul Collier’s latest book, The Plundered Planet: Why We Must–and How We Can–Manage Nature for Global Prosperity, which he discussed at a recent Wilson Center event.
The author of The Bottom Billion and Breaking the Conflict Trap, Collier called Plundered Planet “the most important book I’ve written.” Resources are a “one-shot game,” he said; if we waste them, they’re gone. The next 10-20 years are “vital” to preserving natural assets as new technologies for removing them proliferate. We’re sucking fish up like “hoovers,” he said, and a combination of technology and economic growth are rapidly pushing mineral extraction into the few remaining frontiers.
Because time is short, Collier hopes his work will bring economists and environmentalists together. He said the two groups are largely at each other “cat and dog,” yet their objectives–environmental preservation and economic development–are not fundamentally opposed. In fact, to overcome polarization and produce key policy decisions, development and conservation must become partners.
Becoming Custodians, Not Curators
Collier said resource plunder can take one of two forms: “Where the few expropriate what belongs to the many”; and “where nature is expropriated by the present generation and burned up rather than benefiting future generations.” Both forms of plunder not only impede development, but are also unjust, he said.
Unlike other assets–such as books or records, which are typically owned by their authors or artists–natural assets have no human creators. A system whereby “natural assets are owned by the people who are lucky enough to live on top of them” creates “staggering inequality,” said Collier. Instead, resources must be shared equally among all citizens of a nation, including those not yet born.
Yet sharing nature’s wealth with generations to come does not mean leaving all fish in the sea, all trees on land, or all minerals underground. “We are not curators of natural artifacts,” Collier said. “We’re custodians of natural value.”
For the one billion people living in poverty, the development of natural resources can provide a path toward development, growth, and better lives, Collier argued, when properly and justly managed.
Filling the Gaps in Governance
Why have we largely plundered, rather than invested in, our resources thus far? What can be done to change the current principles of resource management? Collier’s short answer: governance.
For the poor countries in the “bottom billion,” Collier said the “broken decision chain” must be mended. The chain has six steps:- Discovering natural assets;
- Avoiding appropriation by a few at the expense of the many;
- Ensuring local inhabitants receive generous compensation for unavoidable environmental damage;
- Consuming in a way that benefits both the present and the future;
- Investing in the absorptive capacity of government; and
- Investing in domestic development.
Igniting a Movement
“There is no substitute…for building a critical mass of informed opinion,” Collier said. While technology enables plunder, it also creates a way for people to share knowledge at tremendous speeds and with wide audiences. The challenge, he said, “is to ignite the information transformation process.” A shift from plunder to sustainable management of transnational and developing country resources is a historic opportunity to benefit the world’s poor. “If these resources are harnessed for sustained development,” he said, “they can drag themselves decisively from poverty to prosperity.” The window of opportunity, however, is closing. -
Rare Earth: A New Roadblock for Sustainable Energy?
›June 7, 2010 // By Wilson Center Staff
The 2010 National Security Strategy emphasizes that energy independence is part of a larger strategy for national security, stating, “As long as we are dependent on fossil fuels, we need to ensure the security and free flow of global energy resources.”
However, the alternatives to fossil fuels–such as wind energy, hybrid vehicles, and energy-efficient light bulbs–could also lead to dependence on international resources. They require minerals known as rare earth elements or minerals (REEs). REEs are required for producing the magnets necessary for a variety of goods, including precision-guided munitions, computer hard drives, lasers, communication and radar systems, satellites, and color televisions.
But China has a virtual lock on the production of REEs. In response, U.S. policymakers requested the GAO produce a detailed assessment of REEs in the U.S. defense supply chain as part of the 2010 National Defense Authorization Act. At the same time, the Pentagon is changing its policies regarding acquiring and stockpiling REEs.
Demand for Rare Earth Predicted to Rise
CEO Mark Smith of Molycorp Minerals, a U.S. rare earth mining operation, told HardAssetsInvestor.com:Today the largest use of these magnets is in hard disk drives… We believe that may be changing as hybrid cars become more popular and the use of wind turbines becomes more widespread. Clearly, on a volumetric basis, these two new clean energy technologies could easily overtake hard disk drives in terms of the volume of permanent rare earth magnets required.
Despite their name, REEs are not necessarily rare–known stocks and demand vary widely by element–but supplies of some key elements are short, reports Robin Bromby of The Australian.
China Corners the Rare Earth Market
The growing attention paid to REE supply stems more from the location of mining and production facilities rather than pure scarcity concerns. According to the GAO assessment, China produced 97 percent of rare earth oxides in 2009, and it has established economic protections on rare earth exports. The United States Magnet Material Association has estimated that China’s consumption of rare earth materials will outpace its supply between 2012-2015.
“What we need to be careful of is that we don’t unknowingly change our dependence on foreign oil to a new dependence on Chinese rare earths,” Molycorp’s Smith told HardAssetsInvestor.com. While new technologies may change the type of battery used in hybrids, “the one thing that cannot change in electric vehicles or hybrid vehicles is the use of permanent rare earth magnets in the motors and generators. There is simply no substitute for those magnets,” said Smith.
U.S. Seeks Secure Supplies
Given the lack of substitutes, the United States is attempting to secure access to REEs. Known deposits exist in the United States, Australia, Brazil, India, Canada, South Africa, and Greenland. However, in order for the United States to procure secure access to REEs, they must both acquire mines and processing facilities for the multi-stage production process, which today takes place almost entirely in China.
The GAO estimates it may take up to 15 years for the United States to produce a finished product. In that time, Chinese consumption is expected to have vastly increased and demand for certain REEs may be very high.
Washington is taking this threat seriously. As pointed out by CNAS’ Christine Parthemore, the 180-day turnaround time on the GAO’s rare earth assessment was considerably shorter than for other assessments, including a plan for operational use of biofuels.
The Pentagon is revamping its stockpiling practices, reducing bureaucratic barricades to changing quotas, broadening buying options, and growing the array of stockpiled resources, the Wall Street Journal reported, adding:The rising competition for raw materials has sparked fears in the U.S. military that some materials that once seemed abundant could suddenly become hard to get at any price. In 2008 the military suspended or limited sales of 13 commodities it had previously considered excess. Last year it added 14 materials to its list of resources it considers for stockpiling, including specialty steels, lithium and some rare-earth elements, taking the total to 68. More additions are expected, said Ms. Stead of the Defense National Stockpile Center.
While it seeks secure supplies of REEs, the United States, and the defense community in particular, should take heed of the long history of minerals and conflicts around the world. Global demand for certain minerals has supported combatants in conflict areas; for example, control of coltan mines in the Democratic Republic of Congo, while producing only 1 percent of global supply, played a significant role in that country’s civil war.
The switch to alternative transportation fuels could similarly produce new patterns of global resource demand that spur or support conflict–a phenomena that will be explored in an upcoming ECSP event, “Backdraft: The Conflict Potential of Climate Mitigation and Adaptation.”
On the other hand, done correctly, mineral extraction could be a way to break the “resource curse” and increase cooperation rather than conflict. In Pakistan, “development and maintenance of an extractive mineral industry could revolutionize the Waziristan economy and infrastructure in the long-term,” says Natural Security, which could provide “an incentive for local cooperation.”
Ultimately, the way that the United States seeks to slake its hunger for resources will determine whether it can stockpile its way to security.
Tara Innes is a PhD student at the University of Maryland, studying conflict-environment linkages and an intern with ECSP.
Photo Credit: Adaptation of Periodic Table, courtesy Flickr user Destinys Agent
