Showing posts from category economics.
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New World Bank Report on Land Grabs Is a Dud
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After months of delays and false starts, and a tantalizing partial leak to the Financial Times earlier this summer, the much-ballyhooed World Bank report on large-scale land acquisitions has finally arrived.
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The Complexities of Decarbonizing China’s Power Sector
›August 27, 2010 // By Wilson Center StaffOver the past year, there have been a series of new initiatives on U.S.-China energy cooperation. These initiatives have focused primarily on low-carbon development, and have covered everything from renewables and energy efficiency to clean vehicles and carbon capture and storage. Central to the long-term success of these efforts will be strengthening the U.S.’s incomplete understanding of China’s electricity grid, as all of the above issues are inextricably linked to the power grid itself.
As both the United States and China try to figure out how to decarbonize their power sectors with a mixture of policy reform and infrastructure development, China’s power-sector reforms could present valuable lessons for the United States. At a China Environment Forum meeting earlier this summer, Federal Energy Regulatory Commission (FERC) Chairman Jon Wellinghoff joined power sector experts Jim Williams, Fritz Kahrl, and Ding Jianhua from Energy and Environmental Economics (E3) to address the subject, discussing gaps related to electricity sector analysis and presenting research on decarbonizing China’s electricity sector.
Addressing Shared Challenges
Chairman Wellinghoff kicked off the presentation with an overview of the similarities and differences in the U.S. and Chinese power sectors. Wellinghoff stressed that both countries face common obstacles in expanding renewables, namely that wind- and solar-energy sources are located inland, far away from booming coastal cities where energy demand is highest. He added that market and regulatory incentives to integrate renewables into grids are currently insufficient.
However, Wellinghoff also made the point that each side has comparative advantages. For instance, while China has superior high-voltage grid transmission technologies, the United States has been developing advanced demand-side management practices and markets to spur energy efficiency and renewable integration in the power sector. Wellinghoff argued that mutual understanding of each others’ power sectors is important for trust-building and effective cooperation, and can result in net climate and economic benefits for both sides.
Achieving these benefits will not be easy. E3’s Jim Williams noted that the Chinese power sector is currently in transition, a process that is producing some increasingly complicated policy questions. How these questions are answered has the potential to drastically shift the outlook for China’s carbon emissions. For instance, if the United States can help push China’s power sector to become less carbon-intensive, there could be substantial benefits for lowering global greenhouse gas emissions.
One of the major issues at the moment is assessing the cost-benefit analysis of renewable and low-carbon integration and trying to ascertain what the actual cost of decarbonizing the power sector would be. Due to a lack of “soft technology” — analytical methods, software models, institutional processes, and the like — policymakers in China still do not have a good sense of what level of greenhouse gas reductions could be achieved in the power sector for a given cost.
More Intensive Research Needed
Fritz Kahrl and Ding Jianhua, also from E3, went on to explain that for China, as with the United States, the underlying issues of how to decarbonize the power sector will demand considerable quantitative analysis. The United States has more than three decades of experience with quantitative policy analysis in the power sector, driven in large part by regulatory processes that require cost-benefit analysis. In China, policy analysis in the power sector is still at an early stage, but there is an increasing demand among policymakers for this kind of information.
For instance, over the past five years, China’s government has allocated significant amounts of money and attention to energy efficiency. However, standardized tools to assess the benefits and costs of energy efficiency projects are not widely used in China, which has led to a lack of transparency and accountability in how energy efficiency funds are spent. This problem is increasingly recognized by senior-level decision-makers. Drawing from its own experience, the United States could play an important role in helping Chinese analysts develop quantitative approaches for power sector policy analysis.
Pete Marsters is project assistant with the China Environment Forum at the Woodrow Wilson Center.
Photo Credit: “Coal Power Plant (China),” courtesy of flickr user ishmatt. -
“All Consuming:” U of M’s ‘Momentum’ on Population, Health, Environment, and More
›August 23, 2010 // By Schuyler NullMinnesota’s Institute on the Environment is only in its third year of operation but has already established itself as an emerging forum for population, health, and, environment issues, due in no small part to its excellent thrice-a-year publication, Momentum. The journal is not only chock-full of high production values and impressively nuanced stories on today’s global problems, but is also, amazingly, available for free.
Momentum has so far covered issues ranging from food security, gender equity, demographic change, geoengineering, climate change, life without oil, and sustainable development.
Highlights from the latest issue include: “Girl Empower,” by Emily Sohn; “Bomb Squad,” with Paul Ehrlich, Bjørn Lomborg, and Hans Rosling; and “Population Hero,” on the fiscal realities of stabilizing growth rates.
The lead story featured below, “All Consuming,” by David Biello, focuses on the debate over whether consumption or population growth poses a bigger threat to global sustainability.Two German Shepherds kept as pets in Europe or the U.S. use more resources in a year than the average person living in Bangladesh. The world’s richest 500 million people produce half of global carbon dioxide emissions, while the poorest 3 billion emit just 7 percent. Industrial tree-cutting is now responsible for the majority of the 13 million hectares of forest lost to fire or the blade each year — surpassing the smaller-scale footprints of subsistence farmers who leave behind long, narrow swaths of cleared land, so-called “fish bones.”
Continue reading on Momentum.
In fact, urban population growth and agricultural exports drive deforestation more than overall population growth, according to new research from geographer Ruth DeFries of Columbia University and her colleagues. In other words, the increasing urbanization of the developing world — as well as an ongoing increase in consumption in the developed world for products that have an impact on forests, whether furniture, shoe leather, or chicken fed on soy meal — is driving deforestation, rather than containing it as populations leave rural areas to concentrate in booming megalopolises.
So are the world’s environmental ills really a result of the burgeoning number of humans on the planet — growing by more than 150 people a minute and predicted by the United Nations to reach at least 9 billion people by 2050? Or are they more due to the fact that, while human population doubled in the past 50 years, we increased our use of resources fourfold?
Photo Credit: “All Consuming” courtesy of Momentum. -
Fire in the Hole: A Look Inside India’s Hidden Resource War
›August 18, 2010 // By Schuyler NullThis month’s Foreign Policy has two features on India’s ongoing internal conflict with Maoist and tribal rebels – perhaps the least known insurgency and resource conflict in the world.
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How Maternal Mortality and Morbidity Impact Economic Development
›“Investing in women and girls is the right thing to do,” says Mayra Buvinic, sector director of the World Bank’s gender and development group. “It is not only fair for gender equality, but it is smart economics.” But while it may be smart economics, many developing countries fail to address the underlying social causes that impact economic growth, such as poverty and gender inequality. Buvinic was joined by Dr. Nomonde Xundu, health attaché at the Embassy of South Africa in Washington, D.C., and Mary Ellen Stanton, senior maternal health advisor at the U.S. Agency for International Development (USAID), at the sixth meeting of the Advancing Policy Dialogue on Maternal Health Series, which addressed the economic impact of maternal mortality and provided evidence for the need for increased investment in maternal health.
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Reform Aid to Pakistan’s Health Sector, Says Former Wilson Center Scholar
›August 5, 2010 // By Wilson Center StaffExcerpt from op-ed by Samia Altaf and Anjum Altaf in Dawn:
WE must state at the outset that we have been wary of, if not actually opposed to, the prospect of further economic assistance to Pakistan because of the callous misuse and abuse of aid that has marked the past across all elected and non-elected regimes.
We are convinced that such aid, driven by political imperatives and deliberately blind to the well-recognised holes in the system, has been a disservice to the Pakistani people by destroying all incentives for self-reliance, good governance and accountability to either the ultimate donors or recipients.
Even without the holes in the system the kind of aid flows being proposed are likely to prove problematic. Over half a century ago, Jane Jacobs, in a brilliant chapter (Gradual and Cataclysmic Money) in a brilliant book (The Death and Life of Great American Cities), showed convincingly how ‘cataclysmic’ money (money that arrives in huge amounts in short periods of time) is a surefire way of destroying all possibilities of improvement. What is needed, she argued, is ‘gradual’ money in the control of the residents themselves. While Jacobs was writing in the context of aid to impoverished communities within the US, she concluded with a remarkably prescient concern: “I hope we disburse foreign aid abroad more intelligently than we disburse it at home.”
Continue reading on Dawn.
For more on U.S. aid to Pakistan, see New Security Beat‘s coverage of the recent U.S.-Pakistani Strategic Dialogue.
Photo Credit: A U.S. Army Soldier with 32nd Infantry Regiment, 10th Mountain Division, hands out medical supplies to Pakistani refugees outside an International Committee of the Red Crescent aid station in Afghanistan’s Kunar province, October 23, 2009. Courtesy of flickr user isafmedia. -
Wilson Center’s Michael Kugelman Finds the Real Culprit in Pakistan’s Water Shortage
›July 28, 2010 // By Wilson Center StaffExcerpt from Dawn:
ON Jan 15, 2006, the Karachi Port Trust (KPT) inaugurated its new fountain – the Rs320m lighted harbour structure that spews seawater hundreds of feet into the air.
Also on this day – as on most others in Karachi – several million gallons of the city’s water supply were lost to leakage, some hundred million gallons of raw sewage oozed into the sea, and scores of Karachiites failed to secure clean water.
Over the next few years, the fountain jet would produce a powerful and relentless stream of water high above Karachi. Meanwhile, down below, tens of thousands of the city’s masses would die from unsafe water.
After several fountain parts were stolen in 2008, the KPT quickly made the necessary repairs and re-launched what it deems “an extravaganza of light and water”.
In an era of rampant resource shortages, boasting about such extravagance demonstrates questionable judgment. So, too, does the willingness to lavish millions of rupees on a giant water fountain, and then to repair it fast and furiously – while across Karachi and the nation as a whole, drinking water and sanitation projects are heavily underfunded and water infrastructure stagnates in disrepair.
Continue reading on Dawn.
For more on Pakistan’s water crisis, see the Wilson Center report, “Running on Empty.”
Photo Credit: Adapted from UN map of South Asia, courtesy of Wikimedia Commons. -
Demographics, Depleted Resources, and Al Qaeda Inflame Tensions in Yemen
›July 21, 2010 // By Schuyler NullA second spectacular Al Qaeda attack on Yemeni government security buildings in less than a month is a worrisome sign that the terrorist group may be trying to take advantage of a country splitting at the seams. U.S. officials are concerned that Yemen, like neighboring Somalia, may become a failed state due to a myriad of challenges, including a separatist movement in the south, tensions over government corruption charges, competition for dwindling natural resources, and one of the fastest growing populations in the world.
Wells Running Dry
Water shortages have become commonplace in Yemen. Last year, the Sunday Times reported that Yemen could become the first modern state to run out of water, “providing a taste of the conflict and mass movement of populations that may spread across the world if population growth outstrips natural resources.”
Earlier this year, government forces came to blows with locals over a disputed water well license in the south. Twenty homes were damaged and two people were killed during the resulting eight day stand-off, according to Reuters.
The heavily populated highlands, home to the capital city of Sanaa, face particularly staggering scarcity. Wells serving the two million people in the capital must now stretch 2,600 – 3,200 feet below the surface to reach an aquifer and many have simply dried up, according to reports.
Yemeni Water and Environment Minister Abdul-Rahman al-Iryani told a Reuters reporter that the country’s burgeoning water crisis is “almost inevitable because of the geography and climate of Yemen, coupled with uncontrolled population growth and very low capacity for managing resources.”
Nineteen of Yemen’s 21 aquifers are being drained faster than they can recover, due to diesel subsidies that encourage excessive pumping, loose government enforcement of existing drilling laws, and growing population demand. Qat farmers in particular represent an excessive portion of water consumption; growing the popular narcotic accounts for 37 percent of agricultural water consumption. Meanwhile, according to a study by the World Food Programme this year, 32.1 percent of the population is food insecure and the country has become reliant on imported wheat.
Yemen’s other wells – the oil variety – have long been the country’s sole source of significant income. According to ASPO, oil has historically represented 70-75 percent of the government’s revenue. But recent exploration efforts have failed to uncover significant additions to Yemen’s reserves, and as a result oil exports have declined 56 percent since 2001. The steep decline has pushed Yemeni authorities to look to other natural resources, such as rare minerals and natural gas, but the infrastructure to support such projects will take significant time and money to develop.
The Fastest Growing Population in the Middle East
Despite the country’s limited resources, Yemen’s population of 22.8 million people is growing faster than any other country in the Middle East. According to projections from the Population Reference Bureau, by 2050, Yemen’s burgeoning population is expected to rival that of Spain.
Fully 45 percent of the current population is under the age of 15 – a troubling ratio that is expected to grow in the near future. The charts from the U.S. Census Bureau embedded below illustrate the dramatic growth of the country’s youth bulge from 1995 through 2030.A poor record on women’s rights and a highly rural, traditional society contribute to these rapid growth scenarios. According to Population Action International’s Elizabeth Leahy Madsen, only 41 percent of Yemeni women are literate and their total fertility rate is well over the global average. A recent survey from Social Watch ranking education, economic, and political empowerment rated Yemen last in the world in gender equity. Yemeni scholar Sultana Al-Jeham pointed out during her Wilson Center presentation, “Yemeni Women: Challenges and Little Hope,” that there is only one woman in a national parliament of 301 members and that ambitious political women routinely face systematic marginalization.
A contributing factor is that 70 percent of Yemen’s population live outside of cities – far more than any other country in the region – making access to education and healthcare difficult, especially in the large swaths of land not controlled by the government.
External migration from war-torn east Africa adds to Yemen’s demographic strains. According to IRIN, approximately 700,000 Somali refugees currently reside in country, and that number may grow as the situation in Somalia continues to escalate. Within Yemen’s own borders, another 320,000 internally displaced people have fled conflict-ridden areas, further disrupting the country’s internal dynamics.
Corruption and Rebellion
Competition over resources, perceived corruption, and Al Qaeda activity have put considerable pressure on the Saleh regime in Sanaa. The government faces serious dissidence in both the north and the south, and the Los Angeles Times reports that talk of rebellion is both widespread and loud:Much of southern and eastern Yemen are almost entirely beyond the central government’s control. Many Yemeni soldiers say they won’t wear their uniforms outside the southern port city of Aden for fear of being killed. In recent months, officials have been attacked after trying to raise the Yemeni flag over government offices in the south.
USAID rates Yemen’s effective governance amongst the lowest in the world (below the 25th percentile), reflecting Sanaa’s poor control and high levels of corruption. Some reports claim that up to a third of Yemen’s 100,000-man army is made up of “ghost soldiers” who do not actually exist but whose commanders collect their salaries and equipment to sell on the open market.
The West and Al Qaeda
In testimony before Congress earlier this year, Assistant Secretary of State Jeffrey Feltman called on the Yemeni government to take a comprehensive approach to “address the security, political, and economic challenges that it faces,” including its natural resource and demographic challenges.
The Yemeni government is poised to receive $150 million in bilateral military assistance from the United States. But some experts are critical of that approach: Dr. Mustafa Alani of the Dubai-based Gulf Research Center told UN Dispatch that, “you are not going to solve the terrorist problem in Yemen by killing terrorists,” calling instead for investing in economic development.
USAID has budgeted $67 million for development assistance, economic support, and training programs in Yemen for FY 2010 and has requested $106 million for FY 2011 (although about a third is designated for foreign military financing).
While Yemen’s Al Qaeda presence continues to captivate Western governments, it is the country’s other problems – resource scarcity, corruption, and demographic issues – that make it vulnerable to begin with and arguably represent the greater threat to its long-term stability. The United States and other developed countries should address these cascading problems in constructive ways, before the country devolves into a more dangerous state like Somalia or Afghanistan. In keeping with the tenets of the Obama administration’s National Security Strategy, an exercise in American soft power in Yemen might pay great dividends in hard power gains.
Sources: Association for the Study of Peak Oil – USA, Central Intelligence Agency, Congressional Research Service, Guardian, IRIN, Los Angeles Times, New York Times, Population Action International, Population Reference Bureau, ReliefWeb, Reuters, Social Watch, Sunday Times, U.S. Census Bureau, U.S. Department of State, UN Dispatch, USA Today, USAID, World Food Programme.
Photo Credit: “Yemen pol 2002” via Wikimedia Commons courtesy of the U.S. Federal Government and “Yemen youth bulge animation” arranged by Schuyler Null using images courtesy of the U.S. Census Bureau’s International Data Base.
