France

Europe's Financial Troubles Worry Neighbors

The European Central Bank looms large over the Euro debt crisis. Photo: <a href="http://www.flickr.com/photos/soumit/928182271/">soumit (flickr)</a>
The European Central Bank looms large over the Euro debt crisis. Photo: soumit (flickr)

As Europe attempts to thwart a broader global recession, it is facing what many economists refer to as a trilemma, and poorer countries could be the victims.

A financial trilemma is comprised of three goals that policy makers try to achieve: (1) a stable/fixed exchange rate; (2) an economy open to international flows of capital; and (3) a sound monetary policy to stabilize the economy.

Here's the catch: In reality you can only achieve two of these goals, not all three.

In 1999, the Eurozone decided to give up the third goal, independent monetary policy. In exchange, they enjoy a common currency across 17 member nations and the freedom to exchange money and goods across borders. Though the European Central Bank creates monetary and fiscal policy for the European Union, each member nation relinquishes its own control.

This becomes an issue when a country gets into financial trouble and must defer to the European Central Bank or greater European Union. This was recently evidenced with the bailout and continuing debt problems in Greece.

Potential for problems arise due to our ever globalized, interconnected world. Eurozone policies are far-reaching, extending their grasp to neighboring emerging markets dependent on foreign dollars. With austerity measures becoming the norm, lenders are avoiding risk and could cut foreign lending in favor of keeping business in their own backyard. The Economist references a speech by the Financial Stability Board head, Mark Carney, in which he warned about the damage if the European bank were to deleverage on the world economy.

Many emerging economies in Eastern Europe depend on both foreign aid and outside investment. If the Eurozone's financial well runs dry the effect will ripple throughout Eastern Europe, even the U.S. Poorer E.U. members worry that they'll emerge the victims. French president Nicolas Sarkozy rocked the political world after his comments at a University of Strasbourg debate on November 8, where he described a proposal for a two-speed Europe, presumably divided between richer and poorer nations.

What part does the European Central Bank (ECB) play in this? That’s the question everyone is asking. Similar to the U.S. Federal Reserve, the ECB has the power and leverage to swoop in and bail out E.U. members on the brink of collapse. They are hesitating, however. Germany feels the ECB should step in only as a last resort. Many policymakers in Germany believe that the current crisis is forcing reform and thus serving a purpose, as recently expressed in The New York Times.

With optimism waning on debt solutions for the U.S. and abroad, tensions mount and consensus becomes imperative. Politics need to be set aside before any sort of real dialogue can exist. Will the E.U. decide on a two-speed Europe? Will any countries abandon the Euro? The implications for emerging markets are considerable; several outcomes could result in global recession.

For China, flush with cash, financial crisis may mean political opportunity

Managing Director of the IMF Christine Lagarde meets China's Vice Premier Wang Qishan, Beijing, China. Photo: <a href="http://www.flickr.com/photos/imfphoto/6329172810/in/photostream/">International Monetary Fund (flickr)</a>
Managing Director of the IMF Christine Lagarde meets China's Vice Premier Wang Qishan, Beijing, China. Photo: International Monetary Fund (flickr)

The global financial crisis has shaken up the international seating chart, and China may be vying for a better spot.

Though China was one of the International Monetary Fund’s original members, that invitation to the table didn’t mean it had a voice in the conversation. But last year, the World Bank and IMF both moved the country to third place. While the move changes the pecking order for Germany, the UK and France, traditional leaders, it matches China’s increasing position in the world economy with voting power.

Now, we wait to learn whether China will use its power to ease the Eurozone crisis. The IMF, typically the lender of last resort for sovereign states, needs more capital to provide the kind of liquidity Europe needs. China has that liquidity. In loaning to the IMF to play middleman, China can keep itself out of European politics, while keeping world economies - and important European trading partners - humming.

China’s funds would go far. Just last week, the New York Times reported, the IMF offered an additional short-term credit to “bystanders” - member nations feeling the “contagion" of regional and global default. One tool is a “precautionary and liquidity” credit line that would help countries approved by the Fund as having sound economic policies to meet short-term payments. The other new tool combines emergency disaster and post-conflict relief under a new rapid-financing instrument, which can now also be used after exogenous shocks like global financial crises.

The announcement immediately reversed earlier market slides the same day, showing the move boosted investor confidence, according to the Times. But if even a few countries take up the IMF on its offer, its account will soon run dry.

If that happens, China and its ocean of cash will be waiting. The country has shown signs that it’s at least willing to play, but it remains to be seen what rules it will follow. With Western economies looking increasingly desperate, China has the opportunity to play tough. Its decision could relieve the global economy, but it could also help put a new country at the head of the table.

Could a 'Good Samaritan' law bridge China's growing wealth gap?

A Victorian stained glass window depiction of the "Good Samaritan" story from the Gospel of Luke.  <a href="http://www.flickr.com/photos/paullew/2566602101/">Photo: Lawrence OP (flickr)</a>
A Victorian stained glass window depiction of the "Good Samaritan" story from the Gospel of Luke. Photo: Lawrence OP (flickr)

This article was republished by The Christian Science Monitor.

The Good Samaritan of Biblical lore was different than you and me: he was able to help without the fear of being sued.

Disturbing footage of an unattended Chinese girl being run over twice and ignored by 18 witnesses has shed unflattering light on China’s civil society. Two-year-old Xiao Yueyue (which translates as Little Joy in Chinese), daughter of two migrant worker parents, died on October 21st in a Guangdong hospital, eight days after the horrific incident.

Disapproving fingers are being pointed in various directions: from the disintegration of society’s morality to the government’s neglect of protecting civil liberties. Yue Yue’s unexpected death has revived a fierce international debate over Good Samaritan laws.

If you missed the final Seinfeld episode, Good Samaritan laws protect people who assist victims of injury or crime. “They are intended to reduce bystanders' hesitation to assist, for fear of being sued or prosecuted for unintentional injury or wrongful death," as Wikipedia puts it.

Prior to the broadcasting of Yue Yue’s tragedy, several sensational lawsuits had embittered the public toward performing heroic deeds for strangers. Specifically, in 2007 an elderly woman sued a young man by the name of Peng Yu for escorting her to the hospital after she had fallen and broken her leg. Mr. Peng was ordered to pay the damages to the elder woman under the judge’s logic that the man wouldn’t have helped her unless he was guilty of injuring her in the first place. Some litigators suggest that lawsuits of this nature create legal disparity between the affluent and the less privileged. Perhaps had the woman not belonged to the poorer class, in need of money, no such lawsuit would have been filed.

A recent China Daily poll reveals that approximately 87 percent of Chinese citizens are unlikely to aid an elderly person who has fallen in the street because they want to avoid being blamed for the accident. “The public's lack of a sense of trust has been made obvious by recent media stories that have looked at the hesitation people feel before they come to someone else's aid," Xie Jing, a communications professor at Fudan University, told the newspaper.

While Good Samaritan Laws in the United States are not federally imposed, the largest jurisdictions in the United States—New York, California, and Texas—have statutes that shield voluntary assistants from liability in the case of an accident. Yet “Good Samaritans” in California and Vermont may be prosecuted if they don’t act in the medical interest of the victim. In 2007 a woman who pulled a friend out of a wrecked car, leaving the friend paralyzed, was liable to civil damages in California because “the perceived danger of remaining in the wrecked car was not "medical," the court ruled.”

One explanation for not imposing more collective responsibility on individuals: separation of morals and law.

"Our common law has always refused to transmute moral duties into legal duties,” Virginia Law Professor Charles O. Gregory noted to Time Magazine in 1965, when the killing of a woman within earshot of dozens of her neighbors prompted a national debate about civic duty. Today, every state has some form of Good Samaritan law protecting people from liability for trying to save a life, according to HeartSafe America.

In Canada, too, each province has its own set of laws concerning Good Samaritan acts. Quebec’s Charter of Rights gives citizens a "duty to rescue:" individuals must assist anyone in jeopardy, unless there is reasonable evidence that it would cause danger to himself or a third party. Abstaining from helping someone is not considered a criminal offense, since it comes from the provincial level. Yet the majority of provinces have adopted a version of the Good Samaritan Law, most of which provide some form of protection for voluntary passers-by from liability for the victim’s damages, unless it can be proven that the damages were caused by the gross negligence of the person.

In France, witnesses to a person in distress can be arrested for not intervening. A Frenchman who fails to help another when he can do so without risk is liable for up to five years in prison and fined several thousands in Euros. The French logic follows that a witness is a participant in the crime if he/she does nothing to prevent it.

In spite of the outrage bubbling in China over society’s apparent moral decline, the majority of the population is reluctant to follow in France’s footsteps. According to one online poll, 77.7 percent of Chinese respondents disagree with the idea of establishing a 'duty to rescue' law. Most claim they don’t want moral acts to be legally enforced. With restrictions on individual freedom already so tightly monitored, the Chinese appear weary to have one more government mandate imposed.

It took the death of a two-year-old girl to bring greater awareness to what it means to do the right thing. Perhaps what is most disturbing about Yue Yue’s death is the realization that an underlying current of fear has become inherently attached to what should be a visceral reaction of compassion. Had the Samaritan described by Luke in the New Testament been bound by today’s laws, perhaps he would not have been so good.

An anti-poverty tax, some say, could save financial markets from themselves

Some say a transaction tax could put humans back in charge of financial markets. Photo: <a href="http://www.flickr.com/photos/rogbu/3064449616/in/photostream/">RoGb77 (flickr)</a>
Some say a transaction tax could put humans back in charge of financial markets. Photo: RoGb77 (flickr)

As lightning-fast computer programs replace human brokers on Europe's virtual trading floors, anti-poverty warriors want to slow things down.

There's never been a better time, they say, for a redistributive "Robin Hood tax," which would slap a fee on each financial transaction, deterring meaningless trades and putting the revenue toward fighting poverty and climate change. The center-right leaders of France and Germany called for such a tax last month, Reuters reported, and leftish outlets like The Guardian have happily joined their choir: "Even if such a tax was levied at just 0.05%, it could raise hundreds of billions of dollars, which could be ploughed into development projects," the paper wrote of a petition signed by 1,000 economists from around the world. The EU plans to gather support for a tax at November's G-20 summit, says Reuters.

Political attacks on money-changers are nearly as old as money itself. What's new is that the usual arguments against such a tax – that it'd reduce trading volume and hurt the economy by making financial markets more volatile – may be getting weaker. In fact, people like former London Stock Exchange executive Martin Wheatley now argue that computer-driven trades make volatility worse.

Exhibit A: Wall Street's May 2010 "flash crash," in which computer algorithms temporarily wiped 10 percent off major stock indexes in a squall of rapid transactions, apparently because they saw one another doing the same thing.

On the Robin Hood Tax website, spokesman Richard Gower called this "casino capitalism cyborg-style" and suggested that humans could tax irrational computer programs out of the market.

Others use less colorful language.

"For the first time in financial history, machines can execute trades far faster than humans can intervene," Bank of England executive Andy Haldane said in July, according to The Telegraph. "Grit in the wheels, like grit on the roads, could help forestall the next crash."

Haldane was speaking in favor of internal or regulatory changes, not a redistributive "Robin Hood" tax. But with Western economies in a skid, some think financial markets might be safer with Robin behind the wheel. After all, at least he's human.

Tips from Ashoka's Top Social Entrepreneurs

One room, packed with 1,000 bustling social entrepreneurs, is bound to muster innovative ideas to change the world. It’s the Ashoka Changemakers association that makes it possible.

Ashoka Changemakers is a global online community that aims to bring together innovators, journalists, investors and enthusiasts to solve some of the world’s toughest problems. It’s now one of the largest associations of social entrepreneurs.

On June 21-22, 1,000 Changemakers met in Versailles, France to exchange ideas and encourage each other’s projects. Ideas varied from parenting and youth empowerment programs to solar power projects. Roots of Empathy, which aims to build caring, peaceful and civil societies as well as Solar Aid which plans to deliver clean and renewable power to some of the poorest people in the world, were both on hand.

The leading Changemakers aim to help relieve some of the pressures of new social entrepreneurship with simple, but valid statements. "When things don’t turn out the way you’ve planned, it’s because there is a better solution waiting to be found," says Thorkil Sonne, founder of software-testing company Specialsterne.

Check out the video below for more tips on creating and running successful social enterprises from some of the leading Changemakers.

Hangzhou, China Pedals to Number One in Bike Sharing

Washington, D.C.’s bike sharing program has 1,100 bikes. London’s system has 6,000. And Paris has more than 20,000.

But on the other side of the globe, Hangzhou, China has them beat with more than 60,000, according to a recent report by National Geographic.

To see how it all works, check out this short from Streetfilms:



Bike shares -- where a user can pick up a bicycle at one service point, ride it, and then drop it off at another and walk away -- are growing in popularity. China, along with many other developing nations, has a long-held cultural tie to bicycling. Demand for automobiles skyrocketed in recent decades, but in a city of 6.7 million like Hangzhou, it would be impossible to build enough roads to support this, not to mention environmental concerns.

Bike shares are cheap (nearly free for many in Hangzhou), highly accessible, and part of a sustainable urban growth model. Hangzhou hopes to expand its system to 120,000 bikes by 2020 and other cities are taking notice of its success. Companies in Beijing, Rio de Janeiro, and Mexico City are making a go of it and hope to remove the training wheels soon.

Pay Up, S'il Vous Plaît

Vive la Révolution! Haitians rebel in the Battle at Sainte-Domingue. Photo: <a href="http://en.wikipedia.org/wiki/File:San_Domingo.jpg">Wikimedia Commons</a>
Vive la Révolution! Haitians rebel in the Battle at Sainte-Domingue. Photo: Wikimedia Commons

This week, the ghosts of colonial misdeeds returned to haunt France.

EU politicians and others wrote an open letter to President Nicolas Sarkozy, demanding that the French government compensate Haiti for a past wrongdoing, explains the Christian Science Monitor.

A petition signed by 100 artists, scholars, and EU politicians that was released Monday called on France to give Haiti $17 billion for earthquake reconstruction. The money would essentially reimburse a fee French King Charles X charged Haiti after a revolt that ended slavery there. King Charles justified the fee as compensation for the loss of slaves and other property.

In 1804, Haiti won a bloody independence from France. But the small Caribbean country was still economically shackled to France until 1947, when the Haitian government finally paid off interest from their lofty independence debt of roughly 90 million gold francs.

Today, that sum is worth about $17 billion — a chunk of change that could surely go to good use helping Haiti rebuild. Haiti remains knee-deep in rubble six months after the devastating earthquake killed thousands and left millions without homes or good health. Yet despite the petition's plea, French foreign ministry spokesperson Christine Fages stressed France's commitment to Haiti, when she spoke with the Christian Science Monitor:

France gives Haiti $25 million a year, has given $30 million in humanitarian aid since the earthquake in January that left some 250,000 dead, has erased a $72 million in debt, and plans a total of $420 million more in aid through next year.

Although President Sarkozy dismissed the petition, he recently stated, "Even if I did not start my mandate at the time of Charles X, I am still responsible in the name of France."

Let's hope so, Monsieur le Président.

Guide to the Global Summit

The G-20 is meeting this week in Pittsburgh, Pennsylvania. Chaired by President Barack Obama, the purpose of the summit is to, “review the progress made since the Washington and London Summits and discuss further actions to assure a sound and sustainable recovery from the global financial and economic crisis.” I’ve heard of the G-8, but the G-20? I began to wonder about this alphanumeric soup of organizations. Who are they and what are they concerned with? The following scorecard should help interested followers of this subject keep track of the major players.

The G-6: Organized in 1975 by the finance ministers of Germany and France who were frustrated with the formality and structure of larger international meetings, the G-6 and subsequent evolutions of this body are strictly informal bodies that meet to discuss economic issues of mutual interest. After the creation of the G-8, the term G-6 is now used to refer to the six most populous members of the European Union. The member countries are: the United States, United Kingdom, France, Germany, Italy, Japan

The G-7: Formed in 1976, this is an informal forum for the finance members of seven big industrial economies to discuss economic issues and seek agreement. Member countries include: Canada, France, Germany, Italy, Japan, United Kingdom, United States. Now also includes the European Union.

The G-8: An evolution of the G-7, membership grew to include Russia. The European Union is a limited member; it cannot host a meeting or hold the presidency of the body. Members are: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member)

The G-8 plus Five: Recognizing the growing influence of other countries, the original group sometimes broadens their meetings by including the Outreach Five. As with all meetings, other countries are sometimes invited to attend. Members: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member) Plus: Brazil, China, India, Mexico, South Africa.

The G-20: According to their website, “[t]he G-20 was created as a response both to the financial crises of the late 1990s and a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance.” Where the earlier groups (G-6 through G-8) were organized around the industrialized countries of the world, the G-20 begins to bring emerging economies into the dialog. Their first meeting was in Berlin, Germany. The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.

The G-20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, European Central Bank

The G-33: The name for a group of developing countries that coordinates on trade and economic issues. It was created in order to help group countries which were all facing similar problems and give a unified voice to countries that were traditionally excluded from discussions among the industrialized countries. Members: Antigua & Barbuda, Barbados, Belize, Benin, Botswana, China, Côte d’Ivoire, Cuba, Democratic Republic of the Congo, Dominican Republic, El Salvador, Grenada, Guyana, Guatemala, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Laos, Mauritius, Madagascar, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Senegal, South Korea, Sri Lanka, Suriname, Tanzania, Trinidad & Tobago, Turkey, Uganda, Zambia and Zimbabwe.

There are other groups variously labeled as G-8, G-20, G-33, and even N-11 (countries which Goldman Sachs considered in 2005 to have a high potential of becoming the world’s largest economies this century: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam).

One of the best, reliable, sources of information about these groups and their members may be found on the websites of the World Trade Organization and the previously mentioned G-20.

You can Track the ongoing discussions of the Pittsburgh G-20 Summit here. But be prepared for slow page loading. It is a very busy website.

Keywords: G-8, G-6, G-20

Slow Summer Tourist Season Means Job Losses for Many

Popular vacation destinations are ready to give tourists what they're looking for, all that's missing now are the tourists themselves. Photo: <a href="http://www.flickr.com/photos/mscolly/12990079/">Marvin (PA) (flickr)</a>
Popular vacation destinations are ready to give tourists what they're looking for, all that's missing now are the tourists themselves. Photo: Marvin (PA) (flickr)

Ah, summer. A time of rest, relaxation, meticulously planned vacations ... and this year, less travel.

One June report by a UN body predicted tourism would decline by 4 to 6 percent this year — and that's before the H1N1 virus further dampened travel.

Tourism is down even in the U.S., where tourists spent more money than anywhere else in 2008. But the downturn is worse across the Atlantic, according to an August Reuters story.

On Spain's popular Costa del Sol, tourist traffic is "the worst I have ever seen it," drink seller Pedro Hervas tells The Telegraph. "There is no one on the beach. If you came here last year at this time you would not be able to get around, there would be so many cars and people."

Analysts cited in a Wall Street Journal story on the battered Mediterranean tourism industry conclude that nations have yet to see the real effects of the tourism slump on economic growth.

"We are seeing a multifaceted impact from the crisis on the tourism sector and there will be a variety of consequences," Marko Mrsnik told the Journal. "These include employment consequences, consequences on the creditworthiness of households and companies in the sector and their ability to pay their debts, and it will certainly have an impact on government revenues."

In Greece about 19,000 jobs have been lost, people in the industry told The Wall Street Journal, and economists predict the lack of tourism could cut more than a percentage point off economic growth this year. According to the same Journal article, in Italy private-sector estimates of tourism-related job losses are as high as 150,000.

Some sunlight, however, has seeped through the dreary forecasts. After Iceland's economic meltdown made their currency more affordable, tourism spiked, and has continued to grow through the summer. North African countries such as Morocco and Algeria have also welcomed more visitors. Some of them are undoubtedly vacationing on the other side of the Mediterranean Sea for a change — or rather, to save some change.

When Thought Turns into Action

Topics: Corporations, Justice
Countries: France, United Kingdom

Hostage takings, vandalism and attempted assault sound like charges on a rap sheet for a hardened criminal. But they're the collective crimes of people who've been laid off recently.

Workers in the French factories for 3M and Sony — enraged about the size of severance packages for laid-off workers — held their bosses captive last month. The captured CEOs actually ended up bargaining with the kidnappers, while the police — not wanting to incense the workers even more — promptly responded by doing ...nothing.

Just last week, workers at a Caterpillar plant in France held their bosses captive as well. They, too, were looking for better treatment for laid-off coworkers. In another incident, workers at the French luxury retail company PPR surrounded their CEO's car and blocked roads so he couldn't escape. This time police did intervene and escorted François-Henri Pinault to safety.

Across the Channel in the United Kingdom, people are outraged with the multimillion dollar pension package given to former Royal Bank of Scotland CEO Fred Goodwin. One group was so upset that it vandalized Sir Goodwin's house and car.

An ominous e-mail from the vandals threatened more attacks:

We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made unemployed, destitute and homeless. This is a crime. Bank bosses should be jailed. This is just the beginning.

Joining in the spirit of protest, as many as 5,000 protesters gathering in London's financial district on the first day of the G-20 summit, expressing discontent over the financial crisis, climate change and war. Several demonstrators threw projectiles and forced their way into an RBS branch through broken windows.

Bert Klandermans, a professor of applied social psychology at Amsterdam's Free University, offers a psychological explanation for why some people are expressing their frustration in this way.

Anger is an emotion that spurs collective action ... [It's] an emotion that results from feeling that somebody is responsible for something, and could have acted differently ... [For many] the bankers did it wrong, and they did it wrong because they were greedy. That's what makes people angry.

Frustrated by executive compensation and the economy, protesters broke windows of an RBS branch in London. Photo: <a href="http://www.flickr.com/photos/camusartink/3406149635/">Camus Live Art (flickr)</a>
Frustrated by executive compensation and the economy, protesters broke windows of an RBS branch in London. Photo: Camus Live Art (flickr)

What does an Obama Presidency mean for Africa?

As the world's euphoria following Barack Obama's election fades (watch VOA's Africa coverage above), what can Africa expect from America's first African-American president — especially when it comes to issues of global poverty?

Many Africans are hopeful that Obama will work to vigorously tackle poverty and disease throughout Africa. Former South African President Nelson Mandela echoed those sentiments in a note of congratulations to President-Elect Obama: "We trust that you will also make it the mission of your presidency to combat the scourge of poverty and disease everywhere."

Are those hopes well-founded? Perhaps. President-elect Obama was a key sponsor of The Global Poverty Act which seeks to cut global poverty in half by 2015. After its passage in February of this year, Obama stated:

With billions of people living on just dollars a day around the world, global poverty remains one of the greatest challenges and tragedies the international community faces. It must be a priority of American foreign policy to commit to eliminating extreme poverty and ensuring every child has food, shelter, and clean drinking water. As we strive to rebuild America's standing in the world, this important bill will demonstrate our promise and commitment to those in the developing world.

Some humanitarian agencies, like World Vision, are already strongly urging President-Elect Obama presidency to increase foreign assistance, food aid in order to meet the UN Millennium Development Goals.

But will the current global economic crisis limit these commitments to poverty alleviation? During the Vice Presidential debate, Vice President-elect Joe Biden admitted that given the current state of the economy an Obama administration may need to "slow down" their previous commitment to doubling foreign assistance.

Obama isn't talking about poverty alleviation nowadays. He (and everyone else) is focused on the U.S. economy. So despite the world's hopeful outlook, it's still unclear how Africa — and its poor — will benefit from America's first African-American president.

Saharan Solar Plants Could Power All of Europe

These squares represent how much land would be needed to power the world, Europe or Germany with solar-thermal power. Photo: <a href="http://www.treehugger.com/files/2008/04/solar-thermal-power-photos-how-much-world-europe-germany.php#ch01">Treehugger</a>
These squares represent how much land would be needed to power the world, Europe or Germany with solar-thermal power. Photo: Treehugger

A single solar farm in the Sahara desert could provide clean electricity for all of Europe.

Scientists are investigating solar farms in the Sahara, as part of a $62 billion plan to provide all green power for a new, carbon-neutral European super-grid.

Because the sunlight in northern Africa is more intense, solar panels in the Sahara can capture up to three times more energy then panels located in northern Europe.

Arnulf Jaeger-Walden of the European commission’s Institute for Energy said today at the Euroscience Open Forum in Barcelona that a mere 0.3 percent of the light falling on the Sahara and Middle Eastern deserts would supply all the energy Europe needed.

The proposed solar farms will utilize advanced solar technology created by the California-based firm Ausra. These solar power plants use movable reflectors to concentrate sun light on pipes. The water in these pipes is solar-heated to produce high-pressure steam, which then goes through a turbine to generate electricity.

These innovative solar plants store enough hot water to make electricity even at night, and to increase production during peak demand periods. The plants are much more effective than traditional solar panel designs, allowing the plants to generate electricity at a mere 10 cents per kilowatt hour, much less than what the average consumer is paying now.

Ausra’s technology has been made cost-efficient by advances in transportation. Jaeger-Walden explained today that transporting the solar electricity would be relatively easy using new high-voltage direct current transmission (DC) lines instead of the alternating lines currently used. Energy loss using DC lines is very low, making the usual issue of transportation over long distances less of a problem.

Sixty-two million dollars for a project of this kind seems expensive — until you compare it with the more than $45 trillion in green-energy systems the world needs over the next 30 years to avoid global catastrophe, according to the International Energy Agency.

Doug Parr, Greenpeace UK's chief scientist, welcomed the project, saying:

"A large scale renewable energy grid is just the kind of innovation we need if we're going to beat climate change. Europe needs to become a zero-carbon society as soon as possible, and that will only happen with bold new ideas like this one. Tinkering with 20th-century technologies like coal and nuclear simply isn't going to get us there."

The Wheel World

Ciclovía Documentary shot by Streetfilms

Bogotá, Colombia is holding a 70-mile long block party. And everyone’s invited.

Ciclovía — "bike path" in Spanish — is an event that closes down major roads for pedestrian use every Sunday and holiday from 7 a.m. to 2 p.m. Created in 1976, it rapidly grew from eight miles and 140,000 bicyclists to 70 miles and an average of 1.5 million weekly riders. Ciclovía is championed as a community building event that attracts people from all backgrounds for a day of biking, walking, skating and dancing in the streets.

In the above video, Bogota’s former park commissioner Guillermo (Gil) Penalosa discusses Ciclovía’s main appeal: social integration.

You will see people in $5,000 bikes and others in $50 bikes, and all having the same fun! Rich and poor, young and old, men and woman, tall or short... ALL!

Cited for “endless benefits” such as the improvement of personal and public health, Ciclovía has inspired other cities to develop similar programs, including Guadalajara, Mexico; Quito, Ecuador; Santiago, Chile; and Paris, where an expressway along the Seine is transformed into a pedestrian refuge one month out of the summer.

Cities in the U.S. are also developing similar programs, starting with El Paso, Texas. This Sunday Portland, Ore., is clearing 6 miles of roadway for six hours in its inaugural "Sunday Parkways." New York Mayor Michael Bloomberg announced his city's plans for Ciclovía-like event this August that would stretch from 72nd to the Brooklyn Bridge along Park Avenue.

Events such as Ciclovía are not only free, but they also bring all sorts of people together to get healthy and build a happy community. It seems like a no-brainer that every city should have a Ciclovía!

Chinese Say No to French Goods

Countries: France, China

After all the protests during the U.S. and European legs of the Olympic Torch Relay, I figured a call to boycott Chinese goods may follow. Instead, it's the Chinese who are rallying behind a boycott.

The Financial Times reports on an online appeal asking Chinese consumers to stop buying French goods. Targeted brands include Louis Vuitton, Givenchy and L’Oréal.

I found one Chinese blogger who called the boycott appeal "immature" but nonetheless criticized Olympic protesters:

Olympics is like the Wedding Ceremony of PEOPLE in China, not the government. Imagine your reaction if someone try to ruin YOUR wedding, instead of your governor's wedding? Now the wedding of 13 billion people started to be ruined. Its not the government official who are not happy, it is everyone in the country who feel being hurt. Please understand the difference, and think about what is going to happen.

It remains to be seen whether such a boycott will gain popularity or have lasting effects on French companies. However, it's worth noting that France isn't even among China's top 10 trading partners, and that the same Financial Times piece notes that "a campaign against Japanese companies three years ago had little lasting impact."

On the contrary, a Chinese boycott of French goods, says Stratfor, a global intelligence service, "could come back to bite Chinese brands — potentially those of corporate Olympic sponsors."

The Implication of Economic Indoctrination

Topics: Education
Countries: Germany, France

Children learn based on their teachers-- and often national policy regarding education. This month's issue of Foreign Policy explores how the way Germany and France teach economics may spell a dismal economic future.

Millions of children are being raised on prejudice and disinformation. Educated in schools that teach a skewed ideology, they are exposed to a dogma that runs counter to core beliefs shared by many other Western countries. They study from textbooks filled with a doctrine of dissent, which they learn to recite as they prepare to attend many of the better universities in the world. Extracting these children from the jaws of bias could mean the difference between world prosperity and menacing global rifts. And doing so will not be easy. But not because these children are found in the madrasas of Pakistan or the state-controlled schools of Saudi Arabia. They are not. Rather, they live in two of the world’s great democracies—France and Germany.


Stories We're Watching

As Growth Slows, India Awakens to Need for Foreign Investment

International Herald Tribune - Tue, 02/07/2012 - 19:58
India’s central bank and economic analysts predict that growth will fall sharply to 7 percent this fiscal year and remain sluggish.

Social responsibility and a new world order

Washington Post - Innovations - Tue, 02/07/2012 - 07:56
Just before the New Year, the London-based Center for Economics and Business Research announced that Brazil had overtaken the United Kingdom as the world’s sixth largest economy. Furthermore, it predicted that by 2020, India and Russia will also have overtaken all the European economic powers.

Aid for trade policy rears its ugly head

The Guardian's Poverty Matters - Mon, 02/06/2012 - 01:41
The UK government's dismay at not being granted the contract for Typhoon fighter jets in India is an indication that its controversial aid for trade policy is still very much alive.

Liberia's battle to put the lights back on

The Guardian's Poverty Matters - Sun, 02/05/2012 - 23:00
Ellen Johnson Sirleaf has set ambitious targets to restore the country's electricity supply. But will it meet them by 2015?

As Africa's consumers rise, so does inequality

Yale Global Online - Fri, 02/03/2012 - 10:17
Kenya struggles to spread the wealth from rapid growth.

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