Saudi Arabia

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

The Sky's Limits

Dubai's Construction Skyline at Night. Photo: <a href="http://www.flickr.com/photos/seeingthings/463684899/">twocentsworth (flickr)</a>
Dubai's Construction Skyline at Night. Photo: twocentsworth (flickr)

The financial crisis is crimping construction in the Middle East and other places that had been experiencing a building boom, Der Spiegel reports.

Developers in Dubai — once synonymous with high profit margins and high-concept architecture — have delayed lavish developments, including a chain of palm-tree-shaped islands and a $600-million Trump hotel and tower.

The slowdown has affected the migrant workers who make up the core of Dubai's workforce, 43 percent of whom call India home. The Times of India reported that thousands of laid-off construction workers have applied for visa cancellations.

Der Spiegel says developers elsewhere in the Middle East, namely Qatar, Bahrain, Kuwait and Saudi Arabia, are scaling back as oil prices fall.

And in Moscow, developers halted construction on what was to be Europe's tallest skyscraper. The Russian economy is "a house of cards that is built on Western loans and which is now collapsing," German architect Peter Schweger told Der Spiegel.

Swapping Lithium for Oil

There are two salt deserts in Bolivia: the Salar de Coipasa and the Salar de Uyuni &mdash; both of which could be destroyed in the mining of lithium. Photo: <a href="http://www.flickr.com/photos/elizacole/334393039/">Jessie Reeder (flickr)</a>
There are two salt deserts in Bolivia: the Salar de Coipasa and the Salar de Uyuni — both of which could be destroyed in the mining of lithium. Photo: Jessie Reeder (flickr)

Does Bolivia have a resource as valuable as Saudi Arabian oil?

The auto industry has historically relied on oil to power cars, but is now turning to new sources of energy. Consequently, raw materials like the lithium in electric car batteries are now in demand.

Ford and GM have invested in the research and production of electric cars, while Toyota has announced plans to build a hybrid electric and start selling an all-electric car by 2012.

So where does Bolivia come into the picture? The introduction of the lithium-ion battery allows cars to go farther on a single charge, making them more convenient and economically viable. But there is a catch: The lithium needed for these batteries is a limited resource, and according to this BBC video report, half of the world’s supply is under Bolivia’s salt flats.

Bolivia, the poorest country in South America, could benefit enormously from mining and processing lithium. But extraction industries have always been controversial. Political tensions over exporting natural gas have ended two presidencies and led to calls for regional autonomy. These tensions have damaged Bolivia's tourism industry, which makes up 6.1 percent of Bolivia's economy.

Mining lithium poses a potential economic Catch-22. Most tourists are drawn by Bolivia’s unspoiled landscape, with the salt flats being a particular point of interest. Mining for lithium could destroy the salt flats, while processing could lead to environmental degradation.

Although electric cars have often been hailed as the future of an environmentally conscious auto industry, lithium has the same Achilles heel as oil: it is a scarce resource. In addition, it is unclear whether the auto industry will even have access to the amount of lithium they would need to launch these ambitious plans. Bolivia’s president Evo Morales is famously cautious about allowing foreigners to mine, and he's considered a fierce environmental protectionist. The decision to mine the salt flats is Bolivia's. Ultimately, the country will have to weigh the benefits of economic development against environmental protection, tourism and foreign influence.

The Complexities of Food Aid in Sudan

Photo: Henry McInnis for Mercy Corps
Photo: Henry McInnis for Mercy Corps

Along the banks of the Nile River in Sudan is some of the most fertile land in Africa. In fact, “Sudan could be self-sufficient, it does have the potential to be the breadbasket of Africa,” notes Kenro Oshidari, director of the UN World Food Program in Sudan.

Despite a harsh humanitarian situation in Darfur, and being the recipient of the most food aid, Sudan is actually a major exporter of sorghum, wheat, beans, peanuts, and tomatoes, among other crops. Just last year the U.S. shipped 283,000 tons of sorghum to Darfur — almost the exact same amount of sorghum exported by Sudan, UN officials told the New York Times.

Jeffrey Gettleman of The New York Times explores the complexity of food aid in Sudan in his revealing article; "The Food Chain: Darfur Withers as Sudan Sells Food."

Gulf Region’s Financial Woes Mean More Job Opportunities for Women

In the Gulf area, religious customs and social norms make it a taboo for women to mix publicly with unrelated men, even for trivial purposes. In a male-dominated world, this makes it nearly impossible for women to earn an income. Now, economic necessity is forcing the conservative society to accept the idea of women in the workplace.

Many women-only ventures are being created to bring more women into the country’s workforce. Mega-retailer H&M is opening the first women-only department store in Saudi Arabia. Though small female-run stores already exist, this major venture is a landmark concession by the Saudi Government.

Saudi Arabia’s newest hotel is also women-owned, women-managed, and women-run – from the IT engineer to the electrical engineer. Until January, women could not check into any hotel alone unless accompanied by a male family member or if they had written permission from a male guardian.

Saudi and UAE banks have set up segregated branches for women only. In the UAE, a government holding company has set up an investment company run by women for women. These facilities allow women to manage their finances independently of prying fathers, brothers or husbands.

Home businesses and business dealings are also starting to crop up. The Economist reports, Western female bankers are seizing this opportunity and travel regularly to the region to hold private meetings with female clients in their homes.

Saudi official Faisal bin Muammar said high unemployment among Saudis and the reliance upon seven million foreign workers was forcing the societal change. “We cannot go on having seven million foreigners [at work] and our graduate women in their houses.”

To some, the Gulf’s women-only places are a sign of progress; for others, it simply reinforces gender segregation. Whatever the case, there are still problems for women gaining access to capital. It is difficult for female businesswomen to obtain loans, especially if they are not from prominent families. Even in Bahrain, where nearly one-third of businesses are registered by women, some can only get a business license in their husband's name. This just goes to show that the idea of women in the workplace has yet to fully materialize.


Stories We're Watching

Singapore Prods Locals to Speak Better English

The Associated Press - Tue, 09/07/2010 - 12:32
"Borrow me $5 can?" may not be the most graceful way to ask for a few dollars, but it's music to the ears of many Singaporeans.

Afghan Expatriates Weigh A Return Home

NPR - Mon, 09/06/2010 - 21:00
In the years after the U.S. invasion, a steady stream of Afghans living abroad came home to help rebuild their country. Then, security started to get worse. There were more suicide attacks and a general feeling of unease. Now, many Afghans living abroad wonder: Is it worth it?

In Afghanistan, The Civil Service 'Surge' That Isn't

NPR - Tue, 09/07/2010 - 06:10
There's a critical shortage of Afghan civil service workers in southern Afghanistan. In dangerous regions such as Helmand and Kandahar, the insurgency has gained strength because the Afghan government is either corrupt -- or not around.

Women Running for Afghanistan Parliament Now Have Tougher Time

Los Angeles Times - Mon, 09/06/2010 - 18:45
Not since the Taliban have women running for seats faced such intense political intimidation, female candidates say. Many are deeply frustrated by their inability to get out and connect with voters.

Mozambique Government Reverses Bread Price Hike

The Associated Press - Tue, 09/07/2010 - 07:41
Mozambique's government is reversing bread and water price increases that had touched off deadly riots.

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