Economics and politics

Economics and politics (17)

Articles on economics from a political perspective.

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We are in 2017 an estimated 7,500 million people on the planet earth – three times the 2,500 million we were in 1950. According to projections made by UN, we will be 9,700 million in 2050 and 11,200 million at the end of the century. The growing world population and its natural desire for decent living conditions imply an enormous stress on our planet with global warming, depletion of resources, decreasing biodiversity, polluted and congested megacities and accumulation of waste. Can we handle this in the future?
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The Middle East has many bizarre regimes. A theocracy in democratic disguise governing Iran, an elected coup general as President of Egypt plus Sultans and Emirs of all shades. And then the most bizarre of all: the Absolute Monarchy of the House of Saud in Saudi Arabia. A medieval absolute Kingdom armed to the teeth with sophisticated weaponry and until recently awash with cash. Our most important ally in the region, who we support unconditionally, also when it chops off the head of its opponents, cuts off the hands of thieves and beheads women accused of sorcery. It is an…
Saturday, 16 January 2016 22:28 in Economics and politics

And now comes the hangover

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There have been good prices for commodities during the last decade: oil, gas, minerals, agricultural products. Now prices have plummeted. This implies a sea change as commodities are again a buyers' market, as it has been the case for most of the second half of the last century. It tips the correlation of forces in favour of the developed countries against the developing countries, which are generally heavily dependent of the export of commodities. But some developed countries are suffering too.
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Independently of the outcome of the Paris Climate Change summit, big oil and coal have started an irreversible decline, facing the competition from renewable energies and an increasing political pressure to de-carbonize our societies. This changes completely the game and eliminates the incentive to reduce supply to get higher prices. In stead, the rush is now to exploit the oil and gas before it is too late. Who comes too late, loses. So OPEC has lost its power for good, and there is no chance it will get it back again.
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Mention Bolivia, and for the last decade it has been difficult not to mention Evo too. Evo Morales was elected as president for the first time in 2005 with 54% of the votes, and he can now celebrate 10 years as president. An absolute outsider, brought forward by social movements of mainly indigenous farmers, workers and small traders, with a tough anti-imperialist and anti-capitalist discourse, he horrified the traditional economic and political elite and the “international community” alike. His government has lived through conflicts and crisis, bordering to civil war, but at the same time it has brought a decade…
Monday, 19 October 2015 18:05 in Economics and politics

THE GRAND NICARAGUAN CANAL

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A canal passing from the Pacifc Ocean to the Caribbean Sea has been a century long aspiration for Nicaragua, but when the US finally opened a canal in 1914, it was in Panama, not Nicaragua. After many false starts, the idea of a canal through Nicaragua looks suddenly as a possibility. But the question is, how realistic are the plans? And is it actually good for Nicaragua?
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