growth Archives - Glimpse from the Globe https://www.glimpsefromtheglobe.com/tag/growth/ Timely and Timeless News Center Fri, 23 Apr 2021 20:43:43 +0000 en hourly 1 https://www.glimpsefromtheglobe.com/wp-content/uploads/2023/10/cropped-Layered-Logomark-1-32x32.png growth Archives - Glimpse from the Globe https://www.glimpsefromtheglobe.com/tag/growth/ 32 32 Foreign Perspective: Mario Draghi’s Transformation of Italy on the International Stage https://www.glimpsefromtheglobe.com/regions/europe-regions/foreign-perspective-mario-draghis-transformation-of-italy-on-the-international-stage/?utm_source=rss&utm_medium=rss&utm_campaign=foreign-perspective-mario-draghis-transformation-of-italy-on-the-international-stage Fri, 23 Apr 2021 20:08:32 +0000 https://www.glimpsefromtheglobe.com/?p=7673 LOS ANGELES — While the world was plagued with despair as COVID-19 lockdowns reached unparalleled heights, unity among Italians provided a sense of hope to the world. Viral videos of Italians singing on their balconies and Andrea Bocelli’s performance at the Duomo di Milano drew global attention in the early stages of the pandemic, effectively […]

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LOS ANGELES — While the world was plagued with despair as COVID-19 lockdowns reached unparalleled heights, unity among Italians provided a sense of hope to the world. Viral videos of Italians singing on their balconies and Andrea Bocelli’s performance at the Duomo di Milano drew global attention in the early stages of the pandemic, effectively shielding the underlying political and socioeconomic hardships that awaited the country and their rising political titan, Prime Minister Mario Draghi. 

An interview with Francesco Loiola, a USC senior and Italian-born citizen, shed light on the country’s sociopolitical complexities. 

Currently, over 118,000 deaths have been reported in Italy, and the government is again scrambling to contain a new surge and the emergence of variants. As the first European country to enter a full lockdown, Italy has become all too familiar with the imposed stringent restrictions. 

“Italy is fragmented,” Loiola said. “There are parts of the nation where people tend to behave in a certain way.”

Geographical regions are color-coded on a map, depending on their level of contagion. In red-zone areas, individuals cannot leave their homes except for health and work-related reasons, and all non-essential businesses are closed. In orange zones, various shops can open, but restaurants and bars exclusively offer take-away and/or delivery services. In yellow zones, businesses, restaurants and bars may remain open until 6 PM. 

However, over Easter weekend, the entire country was considered a red zone and subjected to a national lockdown from April 3 to 5. In tandem with inoculation delays and medical concerns with the AstraZeneca vaccine due to unsubstantiated claims of blood clot formation, the nation finds itself at a crossroads. 

Vaccination delays across the European Union (EU) inevitably explain Italy’s low vaccination rates, but are not the sole contributing factor. News of AstraZeneca’s vaccine efficacy and health-related concerns halted the EU’s vaccination efforts, giving rise to controversial claims among health and safety experts. A lack of transparency and a disunited front led Italy to temporarily suspend the use of the vaccine until the European Medicines Agency (EMA) granted clearance. In April 2021, the EMA’s Executive Director, Emer Cooke, said there is no clear evidence linking the negatively experienced symptoms, such as clotting and bleeding, to the vaccine. However, the impressions of Italian citizens vary. 

A scientific study published by the European Journal of Epidemiology, “Mistrust in Biomedical Research and Vaccine Hesitancy”, assessed vaccine hesitancy amongst a random sample of 968 Italian citizens. The report revealed that citizen trust in scientific research and vaccine efficacy decreased, especially amongst middle-aged individuals. According to the results, the proportion of citizens willing to receive the vaccination is too miniscule to prevent the effective spreading of COVID-19 within the nation. Trust in the European Medicine Agency is essential to extinguish misleading claims that deter herd immunity efforts. 

“In general, people are aware that there are no side effects but are fearful because of health concerns… some are calling upon Draghi to receive the vaccine on camera and will not receive it until Draghi and the Minister of Health do,” Loiola said. 

Draghi has faced unbearable pressure since winning the Senate’s confidence vote, a formality in creating a new government within Italy. At the request of Italy’s president, Draghi formed his own government in January 2021 to tackle the nation’s health and economic crises.

When Draghi was elected, “newspapers all over the world reported on an Italian giant taking over Italy,” Loiola said. “They called him ‘Super Mario’… this is the first time in 25 years that Italian politics has been shown in a positive light,” posing a direct contrast to the notorious corruption that had taken center stage in Italian politics in years past. 

The “cheating mentality” in Italian politics, as Loiola mentioned, has led to widespread misconduct, as evidenced by Matteo Renzi’s term as prime minister and the infamous referendum of 2016. The proposed plebiscite encompassed a series of drastic changes to the Italian political system. If passed, it would have allowed for major reforms to the constitution. 

Francesco Galietti, chief executive of a Rome based political risk consultancy expressed concerns about the referendum’s disillusioned goals: “Renzi, like David Cameron, thought he could unite the party with a referendum and all he achieved was to divide it more than ever,” said Galietti. For most, the referendum was tied to the prime minister’s performance in office. Renzi received high approval ratings when initially assuming the role in 2014, but voters became increasingly frustrated over high unemployment numbers, the migration crisis and health-related issues. 

The referendum received unparalleled voter turn-out, with 70% of the population voting ‘no’ not only on the issues at hand but on Renzi’s rule. While Renzi promised to step back after an ignominious defeat, he returned after a month, launching his own party and igniting a governmental crisis amid the pandemic. 

Thus, the most notable effect of Draghi’s emergence into Italian politics has been both the nation’s and the European Union’s renewed trust in Italy. His experience as former chief of the European Central Bank, credited with “saving the Euro,” has gained him immense popularity amongst Italians and political opposition parties. He remarkably received the support of moderate and conservative politicians alike and now leads a six-party government. 

“Draghi’s presence means we have access to a lot more European money because they [the European Union]trust him,” Loiola said.

In addition to restoring transparency, Draghi’s main task is to redesign the recovery plan that determines how Italy will spend 251 billion dollars in loans and grants from the EU. Draghi’s extensive experience in handling financial markets has made him the quintessential leader to lead Italy out of its economic crisis and improve the quality of life for Italian citizens. 

The wave of restrictions has caused a 30% decline in Italy’s industrial production and an economy shrinkage of 8.9%, a comparable recession to Italy post-World War II. 

Record unemployment numbers and business closures drove the masses into poverty. Approximately 36.7 billion euros were lost from the Italian economy due to travel restrictions that halted their tourism industry, which traditionally makes up 13% of their GDP. 

The European Commission is expected to release more information about an EU-wide digital vaccination passport that would allow for a certain degree of tourism. When asked about how Italians would respond to a digital vaccination passport, Loiola said: “At this stage, more people care about the economy… by May, citizens under the age of 60 should start being vaccinated and they comprise a huge majority of the population and those most heavily affected by COVID-19. When they administer those vaccinations… Italy will [encourage]tourism.”

With a clear agenda ahead, Italians are hopeful in a reformed governmental approach that can effectively tackle the myriad of crises that have plagued the nation. With an emphasis on transparency and diplomacy, Italy’s growth may be insurmountable within the next few years, making way for a second renaissance under Mario Draghi’s guidance. 

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Predictions for Piñera https://www.glimpsefromtheglobe.com/topics/politics-and-governance/predictions-for-pinera/?utm_source=rss&utm_medium=rss&utm_campaign=predictions-for-pinera Tue, 13 Mar 2018 16:47:23 +0000 http://www.glimpsefromtheglobe.com/?p=5672 In its most recent presidential election in December 2017, Chile elected conservative billionaire Sebastian Piñera over leftist candidate Alejandro Guillier. The decisive 55-45 percent victory signals a political shift for the country which has been dominated by the center-left coalition for the last 37 years. The only other disruption of the Left’s power during this […]

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Chile’s president-elect Sebastian Piñera took office on March 11, 2018. 2010. (Gobierno de Chile / Wikimedia Commons).

In its most recent presidential election in December 2017, Chile elected conservative billionaire Sebastian Piñera over leftist candidate Alejandro Guillier. The decisive 55-45 percent victory signals a political shift for the country which has been dominated by the center-left coalition for the last 37 years. The only other disruption of the Left’s power during this era was Piñera’s first presidential term, 2010-2014.

Piñera’s reelection could put many of former president Michelle Bachelet’s policies at stake, as they hinge on socialist values. However, Piñera maintained a very moderate tone throughout his campaign and promises to uphold some of Bachelet’s most progressive laws such as ensuring free university tuition for the country’s poorest 60% of students. His commitment to easing social inequality, accommodating the country’s powerful left wing, and dramatically strengthening the economy will likely clash with the right wing coalition Chile Vamos’ goals, and could be a source of conflict for the veteran politician.

Sebastian Piñera assumed office on March 11 in an unusual political climate, both in Chile and in Latin America more broadly. Chile now joins Brazil, Argentina, and Peru as part of the growing list of countries that recently elected conservative leaders in response to corruption or economic frustration at the hand of leftist administrations. The case of Venezuela has been a particularly strong driver for this continental shift, as its economic crisis has made its neighbors wary of socialism. This became evident during the Chilean elections as voters referenced the possibility of a “Chilezuela” under Guiller, given his passionate commitment to the Bachelet’s leftist policy.

Piñera’s agenda, however, offered voters a slightly more reliable alternative. The Harvard-educated economist is business-focused and has promised to double growth after taking office by reducing bureaucratic obstacles. He wants to cut corporate taxes and instigate $40 billion worth of investment projects related to mining, energy, and infrastructure that stagnated under the previous administration. He expects the rapid growth to help fund pensions, health care, and free education (which shows a change of heart from when he was previously in office, during which time he referred to education as a consumer good.) Voters had good reason to believe in his promises given that economic growth remained around 5 percent per year when Piñera was first president.

However, a number of challenges have already begun to arise for the president-elect. He will not have a majority in either the Senate or the Chamber of Deputies, and will likely have to assign half of his administration to getting anything approved in Congress. Additionally, by striving for moderacy in his campaign, he had to distance himself somewhat from the agenda of his party, Chile Vamos. For example, many conservatives are unhappy that Piñera plans to continue providing free university tuition to poor students, a Bachelet-era development. Some tension has already arisen following Piñera’s criticism of Chile Vamos’s cabinet proposal: “the parties made a very broad (proposal), so in the end all of them were seen, all their people, but they gave up their influence.”

The high potential for partisan conflict, lack of support in Congress, and very lofty goals imply that Piñera may have promised more than he can deliver. I predict that the progress he aims to make by streamlining bureaucratic processes will be balanced by the stagnation of any new proposals in Congress. Therefore, social issues such as changes to state pension plans and the education system will be minimal.

However, Piñera’s term in office will likely see the economic growth promised by his campaign. The economy grew during his previous term because the price of copper was high, and, luckily for Piñera, the price of copper is predicted to rise 3 percent during 2018. Additionally, the GDP is predicted to grow 3 percent in the upcoming year, which will pave the way for his proposed spending plans.

The big question is how Sebastian Piñera will be able to navigate the Chilean political climate given the pressure he will receive from Chile Vamos and the still-primarily-leftist government and population who have set very high expectations. A lot falls on his shoulders, but Piñera has made it this far by emphasizing faith and unity:each time that we Chileans have confronted each other, and seen each other as enemies, we have suffered our greatest defeats and greatest grief. We all know that each time we have united as Chileans, we have achieved our most beautiful triumphs, and our greatest victories.” We will see if Piñera is able to maintain this level of optimism as he settles into his new office.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff, editors or governors.

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Development from an African Perspective https://www.glimpsefromtheglobe.com/regions/sub-saharanafrica/development-from-an-african-perspective/?utm_source=rss&utm_medium=rss&utm_campaign=development-from-an-african-perspective Mon, 05 Oct 2015 19:42:00 +0000 http://www.glimpsefromtheglobe.com/?p=3937 Every year, numerous articles and books are written on the topic of development. These publications regularly focus on Sub-Saharan Africa, the poorest region in the world, and they almost always describe development from a Western perspective, appealing to policy makers and readers in the United States and Europe. Although the authors have virtuous intentions, they […]

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Cranes load containers at the Port of Mombasa. 2012. (MEAACT Kenya/Wikimedia Commons).
Cranes load containers at the Port of Mombasa. 2012. (MEAACT Kenya/Wikimedia Commons).

Every year, numerous articles and books are written on the topic of development. These publications regularly focus on Sub-Saharan Africa, the poorest region in the world, and they almost always describe development from a Western perspective, appealing to policy makers and readers in the United States and Europe. Although the authors have virtuous intentions, they often forget to acknowledge the viewpoint of the African people and are one sided in their portrayal. So, what is the African perspective, and are the needs of the African people truly being met by current programs? If there is one man that can answer this question, it is Donald Kaberuka, the former president of the African Development Bank (ADB).

In 2013, Kaberuka spoke at the African Growth Initiative in Washington DC, laying out a framework for comprehensive development. Kaberuka claimed that most African countries require investment in three areas: institutions, infrastructure and integration. These three requirements are interconnected and dependent on one another. International financial institutions are not easily accessible to many countries in Sub-Saharan African, where the amount of capital available at the domestic level is insufficient. As a result, the build up of infrastructure has fallen behind the rate of economic growth and is now limiting development. Further investment in infrastructure is needed in order to integrate Sub-Saharan Africa regionally, creating a steady flow of trade between African countries and preparing domestic firms for global competition. Kaberuka believes that this is the next step in African development.

Presently, African financial institutions lack the necessary funds to finance new infrastructure projects. The World Bank estimates that Africa needs to invest over $93 billion per year in infrastructure. African institutions currently only spend $25 billion, leaving a gap of $68 billion to be filled by foreign investors. China has proven to be a major financial asset, but only to countries that are rich in natural resources, such as Angola and Nigeria. Leaders in Beijing have invested heavily in various African nations in order to secure long-term supplies of heavy metals and fossil fuels, meeting the demands of China’s ever-expanding manufacturing industry. Moreover, international financial institutions, like the World Bank, have offered limited support due to the bureaucratic nature of their loans, which are slow to be approved and often include onerous reforms. Private investors have supplied a minimal amount of funding, and at the cost of high interest rates.

Kaberuka believes that international financial institutions are the best option for financing infrastructure projects in Africa. He argues that international organizations provide the cheapest loans to African countries and that they protect African governments from developing an unsustainable amount of debt. These organizations routinely evaluate the worthiness of projects and take into consideration the solvency of governments, using their development expertise to ensure that loans are spent strategically. However, as of right now, too many strings have been attached to international loans. These strings, which are also known as structural adjustment programs (SAPs), include policies such as trade liberalization, fiscal austerity, deregulation of financial institutions and privatization. Many researchers have concluded that SAPs are detrimental to the economies of borrowing countries, citing historical examples as proof of reforms gone wrong. For instance, during the 1980s, the IMF bailed out indebted Latin American countries on the condition that they implement SAPs. The adjustments unintentionally exposed borrowing countries to financial volatility and increased the rate of poverty by removing capital controls and eliminating the social safety net.

As the largest shareholder of the IMF and the World Bank, the US could use its voting power to lessen the restrictions that are placed on loans to governments in the Sub-Saharan region. Although the risk of default would be higher with fewer SAPs, African countries will achieve greater economic development if they are given more freedom. For example, fiscal austerity measures should be abandoned, as government spending is an essential component of stimulating an economy. There are many incentives for the US to reduce the number of economic reforms attached to loans. Mainly, advancements in infrastructure will open up new business opportunities for American multinationals, which could stand to benefit from the abundant natural resources and cheap labor. International financial institutions will be able to more effectively generate economic growth in Sub-Saharan Africa if they are not required to demand as many policy reforms.   

Kaberuka’s final point is that Sub-Saharan Africa needs to be integrated as a region. This process involves two parts: improvements in infrastructure and removal of barriers to trade. Regional integration is extremely important, because it boosts overall economic growth, mitigates the risk of market fluctuations and prepares emerging firms for competition in the global economy. Kaberuka makes the case that the process of integration must begin with improvements in regional infrastructure.

There is a very large deficiency of infrastructure in the Sub-Saharan region. The World Bank reports that major ports are regularly overwhelmed due to a lack of capacity and that “road freight moves no faster than a horse-drawn cart.” Additionally, regular power outages, which are caused by a lack of updated equipment and poor maintenance, have hurt the economies of African countries and limited their growth. The costs of transportation and electricity have harmed domestic firms and discouraged foreign ones from investing. Financial support targeting roads, railways and ports would help to improve the African business environment and encourage integration.

China Road and Bridge Corporation is in the process of constructing a railroad network in Kenya, the economic hub of East Africa. The railway will connect major cities in Sub-Saharan Africa to Mombasa, the only large port on the Coast of East Africa. It is expected to have a huge payoff, significantly reducing the costs and hazards of shipping. Chinese investors, both public and private, have largely subsidized the project, providing the Kenyan government with cheap loans. And this project is only a scratch on the surface; the Chinese government recently developed an ambitious plan with the African Union to build a high-speed railway to connect every country on the continent within the century.

However, Kaberuka points out that China has directed its investment towards resource rich countries, ignoring a vast majority of the 48 countries that make up Sub-Saharan Africa. Additionally, China’s demand for commodities has decreased significantly in the last year and will likely continue to do so for the foreseeable future. It is questionable whether China will continue to invest in the region as its economic growth slows.    

The US has also launched infrastructure projects in the region, but has been plagued by a lack of financial support. President Obama united the private and public sector in an initiative known as Power Africa, which plans to bring electricity to millions of people in the region. Nonetheless, the program is off to a bad start, failing to raise enough money to reach its initial target. Given these examples, its is clear that foreign investment from the US and China is not sufficient, and that multilateral development banks (MDBs) need to play a larger role in infrastructure development. An increase in funding from the World Bank would make a tremendous difference.

Kaberuka’s second step in the process of regional integration is trade liberalization, which is entirely dependent on African leaders. Presently, the 48 economies of the Sub-Saharan region have particularly high barriers to trade and operate almost entirely independent of one another. There are eight official African Union Regional Economic Communities, which were established over two decades ago by the Abuja Treaty. However, these Communities have barely increased the amount of commerce, with regional trade currently only accounting for between 12 and 16 percent of Sub Saharan imports and exports. Kaberuka proposes several steps to increase regional trade: 1) the eight Economic Communities should cooperate and work to increase the amount of transactions between their member countries and 2) domestic laws pertaining to commerce should be harmonized across the region. For instance, Kenya and Zambia should have similar environmental standards, so that one country cannot discriminate against the other country’s exports.

Although a lot of progress has been made in the development of African economies, Kaberuka accentuates that there is still a lot of room for improvement. International financial institutions need to step up and play a more significant role in funding infrastructure projects in the region, and African leaders need to further liberalize trade, removing tariffs and harmonizing regulations. Kaberuka has spoken on behalf of the African people. The real question is: will the rest of the world listen?

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff, editors or governors.

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Public Transportation and Modi’s Environmentalism https://www.glimpsefromtheglobe.com/topics/energy-and-environment/public-transportation-and-modis-environmentalism/?utm_source=rss&utm_medium=rss&utm_campaign=public-transportation-and-modis-environmentalism Wed, 18 Mar 2015 21:37:09 +0000 http://www.glimpsefromtheglobe.com/?p=3394 A streamlined public transportation system is an important element of any modern city’s infrastructure. Metro and subway systems reduce traffic, cut emissions and connect populations. Look to Asia for prime examples of such systems; Japan is home to 82 of the world’s 100 busiest train stations and famous for its timely and clean trains; Seoul’s […]

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A train at Pitampura Station in New Delhi, India. March 2004. (Ankur Yadav/Flickr Creative Commons)
A train at Pitampura Station in New Delhi, India. March 2004. (Ankur Yadav/Flickr Creative Commons)

A streamlined public transportation system is an important element of any modern city’s infrastructure. Metro and subway systems reduce traffic, cut emissions and connect populations. Look to Asia for prime examples of such systems; Japan is home to 82 of the world’s 100 busiest train stations and famous for its timely and clean trains; Seoul’s metro system is the longest in the world and equipped with Wi-Fi and 3G data access in all train cars; other Asian cities, such as Hong Kong and Guangzhou, have garnered worldwide acclaim for their clean, spacious, and high-capacity subways; even in Pyongyang, North Korea, the subway system is a well-used piece of infrastructure.

Commuters in Seoul, South Korea can access Wi-Fi and 3G data on their mobile devices on the metro. September 12, 2009. (David Randomwire/Flickr Creative Commons)
Commuters in Seoul, South Korea can access Wi-Fi and 3G data on their mobile devices on the metro. September 12, 2009. (David Randomwire/Flickr Creative Commons)

On the other side of the continent, city governments within India are working to build public transportation systems on par with those systems in East Asia. This is an important step in the success and development of India—its population is set to overtake that of China within the next 20 years, and it is only reasonable that its infrastructure and public transportation systems are up to standard as it continues to grow.

In part, it is a burgeoning consciousness of environmentalism that powered the recent surge in the construction of public subway and bus systems in India. Prime Minister Narendra Modi has stressed the eco-friendliness of India’s expanding subway networks, especially of that in New Delhi. Today, the Delhi Metro Rail Corporation (DMRC) is a large institution, servicing 2,500,000 people or more each day, but Modi has even bigger plans for the system. The government has begun construction on a number of new stations in Delhi to further improve the flow of the DMRC and to reduce Delhi’s pollution from cars and industrial sites. Together with other growing Indian metro systems, the DMRC will be a major feat of infrastructure upon completion with at least 6,000,000 daily passengers. While the numbers might pale in comparison to the tens of millions using subways in large cities across East Asia, India’s progress in public transportation reflects well on the government’s environmental policies—to have 6,000,000 people forgoing cars is no small victory. The DMRC has also received attention from the UN as the first public transportation system built under the UN Framework Convention for Climate Change. On the surface, everything seems to be going smoothly for the Delhi metro system.

Modi and his ministers, particularly Urban Development Minister Venkaiah Naidu, have touted the environmental benefits of the DMRC, projecting the image of an eco-friendly government and urging Indians to be more environmentally conscious. For Modi’s government, the developing subway systems are proof that the government is playing its part in reducing emissions. Naidu has even repeatedly encouraged ministers and government officials to use the Delhi Metro every Wednesday; Naidu rode the Metro to the airport, although it is unclear whether other ministers have followed suit.

In conflict with their domestic rhetoric, Indian leaders sing to a very different tune on the global stage. In anticipation of the UN climate summit in Paris in November 2015, the Indian government has declared it will not create a plan to reduce greenhouse gas emissions. India, after all, is a developing country, and Modi believes that his government’s main priority is to reduce poverty and grow the economy, not to reduce the country’s carbon footprint. India’s greenhouse gas emissions have been a point of concern for developed countries in Europe and North America, but the Indian government has insisted on honoring its own priorities. There is, then, a disparity between India’s environmentalism abroad and at home.

For Modi, this inconsistency is purposeful and strategic. Encouraging environmentalism at home shows that he cares about the health of Indians and cities’ livability; cleaner cities are conducive to a healthier, happier and more supportive population. The growing infrastructure, particularly the DMRC, also employs a great number of people, from construction workers to engineers and suppliers. He has not only created jobs by promoting green life choices; he even runs the metro system at a profit. Modi has capitalized on environmentalism at home, using it as a social and economic tool. His approach to the international stage stems from the same motivation: business development. While domestic environmentalism provides some form of revenue for India, cooperating with developed nations to cap emissions does not. India’s economy relies on industries like mining that will be stunted by environmental restrictions imposed by the international community. Modi cannot afford economic stagnation. Partaking in an emissions cap agreement will put India at a disadvantage, and it is simply not in line with Modi’s business-centric platform. By refusing to join in an environmental agreement, Modi also demonstrates to Indians that he values Indian interests above all else, a potent nationalist message.

To date, Modi has focused heavily on internal business and government interests. But, at what point do his international responsibilities outweigh his domestic duties? As a leader of one of the world’s most populous countries, Modi’s choice has global, lasting consequences. If he cooperates with developed countries, then India’s international image would improve and people around the globe would benefit from less pollution. But if Modi stands his ground, he could build India’s economy further. International leaders claim that the world cannot afford more emissions from developing countries like India, but Modi believes that India cannot afford to limit itself in the middle of its economic boom.

Modi has managed to balance economic and environmental interests regarding the construction of the DMRC; his next challenge is to find that balance on a global scale and place India on the same platform as powerful developed nations like the US and China, economically and environmentally.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff, editors, or governors.

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For Sustainable Development https://www.glimpsefromtheglobe.com/topics/economics/for-sustainable-development/?utm_source=rss&utm_medium=rss&utm_campaign=for-sustainable-development Fri, 21 Mar 2014 14:32:06 +0000 http://scinternationalreview.org/?p=1020 In this first edition of “Face-off” on Glimpse From the Globe, I will respond to my colleague Luke Phillips’ argument against sustainable development. Please read his compelling piece before you continue. Luke and I agree on several points. First, the term “sustainable development” is nebulous. Second, the growth of past prosperous civilizations was fueled, in […]

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In this first edition of “Face-off” on Glimpse From the Globe, I will respond to my colleague Luke Phillips’ argument against sustainable development. Please read his compelling piece before you continue.

Luke and I agree on several points. First, the term “sustainable development” is nebulous. Second, the growth of past prosperous civilizations was fueled, in part, by consumption of natural resources. And third, I question humans’ ability to stop global climate change, not because of global disinterest, but because of the damage already done. However, I disagree with Luke on two points: (1) his justification for the need for continued resource consumption, and (2) his notion of progress.

A historical justification for the continued degradation of the planet is counterproductive and false. Luke correctly asserts: “the prosperous periods of Chinese, Islamic, and European Civilization all mark their periods of intense and unsustainable resource use…” In the past, imperial expansion was fueled – and funded – by the consumption of silver, water, coal, etc. Therefore, according to Luke, human growth and prosperity depend on “unabated resource consumption” and that any contemporary attempt to deviate from this historical pattern will stall human development. This proposition has two issues. First, a historical justification disregards human ingenuity and/or invention. Past civilizations discovered new ways to turn resources into wealth. For instance, the growth of industrial England was fueled by the use of coal in electrical and transportation infrastructure. What is to say that a contemporary society could not discover a new method (e.g., solar, nuclear, geothermal) to fuel growth in an environmentally sustainable way?

Yes, growth depends on the consumption of natural resources, but history should not shackle future human growth to the harmful consumption of natural resources. Scientific advancements and an environmentalist spirit have the potential for societal development, a fact not acknowledged in Luke’s argument. Indeed, there are contemporary examples that prove economic growth is possible with sustainable resource use. One such example is in the “green growth” of the Southeast Asian cities of Da Nang, Vietnam, Surabaya, Indonesia, and Cebu City, Philippines. A World Bank study concluded that investment in sustainable solutions, such as gas-capture landfills and wastewater-treatment facilities, led to economic growth due to “productivity gains, reduced pollution, and more efficient use of resources.” And the results are not confined to Southeast Asia. The World Bank found a worldwide correlation between GDP per capita growth and increased energy use efficiency. Sustainable development is not just possible, it is happening.

Luke’s argument also rests on the oxymoronic nature of sustainable development. In his eyes, sustainability reflects a sense of permanency, whereas development underscores constant change. When combined, sustainability will stall development, and societal progress will stop. However, sustainability and development are – and must be –compatible for the future health of the planet and its people. I define sustainable development as human growth that consumes resources at or below environmental equilibrium (i.e., the amount of resources the natural environment is able to replenish). This is not an equation for zero growth—it is an equation for the use of renewable energies and limited use of non-renewables to further fuel economic growth. It is a notion of progress that does not depend on the continued destruction of the planet. Further, it is a notion that must be embraced and perfected in order to protect the planet and its people. Continuing “to accept that growth brings with it a heavy price to nature” is a recipe for causing a level of climate change that may irrevocably damage, or worse end, future human growth.

In sum, Luke’s argument against sustainable development is defeatist as its logic precludes any hope of environmentally responsible human growth or innovation in green development. Luke contends that the best humanity can hope for is “preservation where possible amidst economic growth.” However, this pessimistic and faux-realist attitude ignores evidence of sustainable growth in Southeast Asia and other parts of the world that lend credence to the prospect of future sustainable development. Thus, Luke’s argument is unduly destructive. Yes, a transition to sustainable development will be a tremendous challenge, but I believe – and evidence shows – that it is possible.

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Against Sustainable Development https://www.glimpsefromtheglobe.com/topics/economics/against-sustainable-development/?utm_source=rss&utm_medium=rss&utm_campaign=against-sustainable-development Mon, 17 Mar 2014 15:10:17 +0000 http://scinternationalreview.org/?p=1012 At any reasonably civilized and well-attended international affairs conference, one of the issues bound to make an appearance is the concept of “sustainable development.” A controversial and nebulous term, most supporters of sustainable development generally agree that human development ought to be reconciled with resource conservation, ultimately to the point that no resources are used […]

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At any reasonably civilized and well-attended international affairs conference, one of the issues bound to make an appearance is the concept of “sustainable development.” A controversial and nebulous term, most supporters of sustainable development generally agree that human development ought to be reconciled with resource conservation, ultimately to the point that no resources are used in excess or wasted. Harmony between society and nature is to be treasured, and it is expected that a society run on sustainable development will find that harmony.

Beyond this, the definitions are as varied as the proponents of the movement. Some campaign for sustainable development in developing countries such as India and Brazil hoping that, in turn, these countries can bypass the polluting industrial periods the West went through. Others support the placement of sustainable development measures in advanced industrial economies to balance out their resource intakes and pollution outputs by national or international policy. Still others are in favor of a far more organic role, with sustainable development occurring locally at the level of businesses and communities and working its way up the ladder of necessity on an ad hoc basis. In short, the practices mentioned above are as varied as the imposition of taxes on emissions and carbon caps, land preservation efforts, and everything in between. Sustainable development borrows much from the principles of environmental protection established earlier in the 20th Century and seeks to apply them directly to economic growth.

Regardless of the nobility and desirability of such a silver bullet to save the Earth, the truth of development is nowhere near as simple as depicted by sustainable developers. Consider the notion that sustainable development is in fact a paradox, or rather an oxymoron.

Sustainability implies a sense of permanency and renewability, and brings to mind small villages rotating crops around various fields bringing in a steady crop and thus a steady income supply. This same idyllic picture can be applied to almost any other commodity, from fish to timber to fruits to cattle. This example cannot, however, be applied to the nonrenewable resources of the interior of the Earth, including fossil fuels and precious minerals. Not surprisingly, the nonrenewable resource policies sustainable development supporters advocate border on complete abstinence.

In marked contrast to this is development. Development implies a sense of forward-moving change, of increasing utility and complexity, of expansion. A brief survey of history seems to reveal a general and sensible pattern; those nations and peoples who were the most powerful, prosperous, and healthy were those who expanded and developed, either in terms of territory, societal and political complexity, or status. And in every case, this growth was fueled by the efficient consumption of natural resources. The prosperous periods of Chinese, Islamic, and European Civilization all mark their periods of intense and unsustainable resource use; yet these also marked those societies’ eras of political consolidation, golden governance, high culture, prosperous markets, and general national greatness. Undoubtedly innumerable issues are at play in the development of a golden age, but underlying all must inevitably be a stable resource base and the productive use of it.

This may seem to be a materialistic analysis devoid of reference to the human spirit. I believe that it does seem to be true that the quality of life of any nation is, to a large degree, controlled by its observance of the abstract ideas of freedom, tradition, and innovation. However, there is a quantitative material foundation which must be set before any of these great social virtues can be observed, and so long as that quantity does not spill into decadence, its continued ascendance assures a better quality of life for citizens.

Sustainable development advocates will argue that society need not continue progressing, that a balance and harmony can be wrought out, and humans can continue to advance on the efficient use of resources alone. While this may be true of communities at the smallest level, I highly doubt that it can be applied at anything higher than the individual or, at most, the nuclear family unit. History seems to tell us that the nature of man is to expand – to improve – and from this expansion, all the dramas and stories of human life flow.

Indeed, when considering the implications of zero growth, an eerie economic picture comes to mind. So far as can be told, it appears that every human polity with a successful history has been based on growth and expansion of some sort, and therefore of continued and unabated resource consumption. But sustainable development, in its perfect model, demands the complete efficiency of resource use, a social harmony with nature recycling all. Thus there is no growth in wealth, as nothing more than is needed for survival is used; and no growth in wealth, in economic terms, is stagnation. In a period of stagnation, societies do not advance, do not grow, and do not improve the lives of their members. They merely exist from day to day. If we direct our policies towards sustainable development, we essentially steer our plans with a golden ideal of zero growth as our guide.

All this being said, I am very much an environmentalist. Once upon a time as a kid, I drew up a proposal for the federal government to buy up all remaining undeveloped private land, fence it off, and call it “America National Park.” Boy Scouts does that to you.

In all practical matters, however, I support environmental protection and conservation 100%. I like the system of management practiced by agencies such as the Forest Service, the Fish and Wildlife Service, and the Bureau of Land Management, and think we ought to continue and expand it into light international law, particularly for fishery preservation. I favor many of the environmental movement’s earliest endeavors, from the Clean Air Act to legislation against riverine pollution to the Endangered Species Act to the establishment of the Environmental Protection Agency. I am not sure that I believe as passionately in our ability to stop global climate change as many of my colleagues, but I look forward to the day when every vehicle runs on electric power generated at clean nuclear plants. Ecology enchants me, tree-planting and trail-building service projects excite me, and there is nowhere I love to be more than a national park.

But all this being said, prudence and moderation is necessary, for we cannot simply pick environmental protection over economic development, as this goes against the human work ethic, and indeed all of history. And we cannot knowingly take a contradiction in terms that cannot be made to work, and then attempt to make it work. Sustainable development is this type of term – a chimera – and the fact that its successes are scant seems to attest to its impotence. It would be preferable for humans to seek balance with the environment in another way: to accept that growth brings with it a heavy price to nature, and to offset that price not by ceasing growth, but by actively improving nature where possible – through greening projects, resource conservation, environmental protection, and preservation where possible amidst economic growth. These represent the only types of sustainable development compatible with the basic, fundamental human condition.

The views expressed by the author do not necessarily reflect those of the Glimpse from the Globe staff and editorial board.

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