Global Themes

On Globalization & Venture Capital

Help, I’m feeling cold…

Even as “a group of eminent scientists” warned last week that “The Earth today stands in imminent peril …and nothing short of a planetary rescue will save it from the environmental cataclysm of dangerous climate change”  it appears thatThere IS a problem with global warming… it stopped in 1998″ !!  (- I somehow missed this article when it appeared last year).

Meanwhile, “Researchers at Duke University” have suggested that while “there is a discernible warming of the Earth’s temperature over the last century, some of which may be due to man-made CO2 emissions, but the effect is not all that clear and the data doesn’t support some of the more exaggerated estimates of global temperature increases.”

Dean has summed it up well on his blog:

“My own take is still the same as it’s been for some time: it’s pretty clear that there’s a probable warming trend, but it’s not clear that it’s catastrophic, and it’s even less clear that it should be our top priority in terms of environmental concerns. Clean water, clean air, forest preservation, and so on should be at the top of the agenda, not this. Although I’ve also long said I’ll compromise with the Greens: I’ll happily support curbing CO2 emissions if part of the deal is that they stop demonizing nuclear power and support the building of new nuclear plants throughout America. Barring that, I’ll continue my firm opposition to the Kyoto protocol and similar programs.”

I feel close to his position.

The more worrying thing though is that “Global-warming alarmists” are apparently trying to “intimidate dissenting scientists into silence“. 

See also “An experiment that hints we are wrong on climate change

To add to the confusion…and on a lighter note, read Global Warming – Part 1 and Part 2 on dilbert.blog

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Related Posts:

Why do I feel a chill when people talk of global warming? and

Is the sky really going to fall tomorrow?.

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mea culpa: This post has been written hurriedly and I have only cursorily gone through the various links posted here…I will have a more thorough look over the weekend but I don’t expect to find major deviations from what I have written here – perhaps some qualifications to the various statements but thats about it.

June 24th, 2007 Posted by Shantanu | Development Issues | 2 comments

What might stall the “Great Chinese Growth Engine”?

chatham-house-logo.jpg        A few weeks ago, I attended a fascinating talk at Chatham House by Professor Wing Thye Woo who teaches Economics at the University of California on “The Real Challenges to China’s Continued High Growth”

He identified three important factors which might lead to the “crash of a speeding car” aka the “Great Chinese Growth Engine”:

  • Hardware failure: “right tire burst” = collapse of a crucial economic mechanism
  • Software failure: “fight within car” = social disorder
  • Power supply failure: “no petrol” = limits from ecological barrier or external sanctions

He also cited several interesting statistics in his presentation of which the two below particularly stood out for me:

  1. “Social Disorder”: 1994 had 10,000 mass incidents involving 730,000 persons? in 2004 the number had gone up to 74,000 mass incidents involving 3.7 million people.
  2. China’s GINI coefficient has almost doubled from .24 in ‘78 to .47 in 2005

The China Policy Institute, which made it all happen, wrote its own report on the talk which can be accessed here.  The report nicely summarised the key points. I would recommend it and the slides to everyone who is watching China and its impact on the global economy.

A few excerpts:

“…China had enjoyed the highest sustained economic growth rate of any country in recorded history, he said, and it was probable that this high growth model would succeed.

But it was important to examine the factors most likely to disrupt the high growth rate from continuing…

…Professor Woo said that perhaps the greatest challenge to China’s continued high growth in China would be future global disputes over resources and the environment, following what he called the unravelling of the global consensus for free trade in the United States, which was making the atmosphere ripe for protectionism.

As China and India moved up the value chain in manufacturing complexity, he said, Western countries were being forced to make painful adjustments as more and more jobs were lost. At the same time they would be faced with demands to help pay for the environmental improvements needed in countries like China and India to curb carbon dioxide emissions, he said.

…The best way to reduce CO2 emissions was to ensure that the new power generation capacity installed in China and India made use of modern, clean coal technology, he said, but this would mean that the richer countries would have to offer to pay for this in order to enjoy the benefits.

This made the atmosphere also ripe for what he called a coming global clash over the “Global Commons” not just air but also water as well. Asia, he said, faced a looming water crisis as China made plans to divert the flow of water to rivers such as the Bramaputra and the Mekong that flowed into India and Southeast Asia…”

June 24th, 2007 Posted by Shantanu | China, Development Issues, Economics, Emerging Markets, Globalization | 3 comments