Entries from October 2008

Facing the crunch(es)

October 30, 2008 · Leave a Comment

A friend just passed this article my way.

‘Devastating though the financial credit crunch has been, it’s nothing as compared to the ecological recession that we are facing.’

—Emeka Anyaoka, WWF’s international president

Interesting (if not scary) indeed… And in terms of the financial global credit crunch – it’s far from over and it will be interesting to see how we get ourselves out of this.

Here’s a thought and I’ll be upfront in saying that I don’t really have a grounding on how “money” works.

If it’s a global crisis and everyone seems to be losing money, then in terms of dollar amounts – isn’t it somewhat relative? As in, it’s not just about how much you lose, but how much you lose compared to the other countries?

And in that case, doesn’t this mean that national competitiveness is what we should really be focusing on?

I’ve listened to Simon Zadek from AccountAbility twice now and he seems to have such lucid points in this realm. Read all about his stuff here. And the cool map here:)

Responsible Competitiveness is an essential ingredient for effective global markets. It blends forward-looking corporate strategies, innovative public policies, and a vibrant, engaged civil society. It is about creating a new generation of profitable products and business processes underpinned by rules that support societies’ broader social, environmental and economic aims.”
Pascal Lamy, Director General, World Trade Organisation

In keeping with this “crunch/zadek” talk…I’ve quoted him before on this blog and I’ll say it again:

  • there is no relationship to the world where we live now and the world that we will live in the future (different cultures, geo-political boundaries)
  • It won’t be the developed countries that will lead the way
  • Look for the change-makers, the emerging markets, the emerging powers
    • Brazil, China, India, Malaysia, Middle East etc.
    • Companies – look for ones that are at a turning point
  • Collaborative Governance in the 21st Century
  • Every sector governed by some multilateral agreement etc. Who owns those?
  • This generation is inheriting a complex and dynamic system of international players that we will have to reform again

Again,

  • This generation is inheriting a complex and dynamic system of international players that we will have to reform again

Think about it. Environmentally and economically, we’re up sh*t creek. How do we want to get out of it?

Categories: Environment · Global Issues · Sustainability

Cool it? My thoughts on Lomborg’s book

October 26, 2008 · 5 Comments

I’m only about half way through reading Bjorn Lomborg’s (blog here) “Cool It” and thought I’d share my “half-way thoughts”.

Premise of the book:

“Bjorn Lomborg argues that many of the elaborate and expensive actions now being considered to stop global

warming will cost hundreds of billions of dollars, are often based on emotional rather than strictly scientific assumptions, and may very well have little impact on the world’s temperature for hundreds of years. Rather than starting with the most radical procedures, Lomborg argues that we should first focus our resources on more immediate concerns, such as fighting malaria and HIV/AIDS and assuri

ng and maintaining a safe, fresh water supply-which can be addressed at a fraction of the cost and save millions of lives within our lifetime. He asks why the debate over climate change has stifled rational dialogue and killed meaningful dissent. “

Agreed - I do think that we have lost some of our rational thoughts when it comes to the climate change discussions. Bjorn’s got a point.

But while reading the book, I can’t help but be irked at some of his own points…

1.  Not everything can be measured by economic cost-benefit analyses

He quite often brings in the economist’s favourite tool – the cost-benefit analysis. Not bad, we need to use it sometimes.  However, and this is a big HOWEVER – economic thinking is not always rational (interesting choice of words i know) because you:

A. can’t put a price on the environment . Sometimes it’s possible, but nature provides us with trillions – remember, our continuous production of “stuff” usually relies on nature’s (not so) infinite supply of resources.

B. How do you know you’re measuring everything that needs to be measured in that C-B analysis? Environmental issues are holistic and most often include externalities that we haven’t even thought of.  i.e. it’s not just about temperatures rising! So, lining up items on the right and left side may show vastly different results depending on who’s making the analysis.

2.  Not everything should just be measured by human death tolls

As sad as this sounds, I don’t think that the goal is to just increase our human life expectancy. One of the major points that Lomborg points out is that more people have died from cold deaths than heat deaths – eliminating the major scare-tactic that global warming will cause more people to die of heat stroke etc.

Interesting and likely valid point. But, when I think of climate change (and more aptly put, environmental issues on the whole) – I don’t think of just people dying.  First of all, we do share the planet with other species, of which, are very important for our sake as well. But, moreover, “deaths by heat stroke” is only one tiny measure which he hits on the head over and over… Human happiness, on the other hand, is important – and even though we’re living, a life without clean water and fighting for natural resources isn’t  such a good life.


3.  Using scientific facts in the climate change talk deserves attention to references

Not saying I don’t believe the stats in his book (and likely his other book- which is sitting on my bookshelf untouched at the moment), but one of the major issues with the global warming talk is that everyone is using numbers and everyone is countering those numbers.

Especially for Lomborg who is really going against the grain on this thesis (and constantly challenging the other facts out there)  – without telling me where you’re getting those facts, it’s hard to know who to believe. UPDATE (next morn): Oops, he has 40 pages of references. I guess I’m just use to footnotes – I can then check at least where it came from.

This is one of the major reasons that I wrote the “My thoughts on global warming: I don’t care.” post last year.  “Let the scientists debate about the actual science, but just look at the issue with common sense…. I’m not saying don’t question, just don’t be ignorant. “

3. Solving world poverty is not the end goal

Lomborg says that we should look after the more pressing global issues such as HIV/AIDS, malaria etc. first. I can’t completely disagree. (Like everyone else in his consensus, how do you rank these?) However, economic development (the goal that he’s suggesting) won’t help fix our problems.

… These 50+ years can give the societies breathing space to tackle many of their more immediate concerns and grow their economies so that they will be better able to afford to build water-storage facilities.

p. 58 in regards to the melting Himalayan glaciers as the supply to India.

Umm.. the long term water supply is important – and won’t be solved by investing in new facilities. Money can’t buy us “new” water.

But anyways, we need to address AIDS, malaria etc., but more importantly we need a long term plan on sustainable development. (Read previous post on full thoughts on this). This is real, long term planning – something that economists have a hard time with…  Answering “What to do now that we’re not poor?”, remembering that our western way of living won’t suffice for the planent.

Although I disagree with some of his points – at this half way stage – I value the different perspectives. It’s true, we have lost a lot of the meaningful dissent in this debate and surely, we’re spending ridiculous amounts on certain strategies which don’t have as much merit as others.

But again, let’s use our common sense.  Sticking crap in the air is bad. Using a resource that we know won’t be there later is bad. Enough said. Time for bed.

Categories: Environment · Global Issues · Sustainability
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how to get rid of excessive happiness…

October 20, 2008 · 1 Comment

I’ve been excessively happy over the past little while. Had a great weekend in Helsinki with friends,  booked a ticket for New York City yesterday, and just a lot of exciting things going on in life and at work.  This :) has been a main stay for a while…

But, my friend helped me get rid of this.

Whoever knows me knows that I somewhat have of a phobia of numbers.

This video makes me feel ridiculously dumb.

Well, no.. it’s pretty amazing:)

Categories: Uncategorized
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How did this happen? Where to go from here? Still pondering the “growth” question.

October 11, 2008 · 3 Comments

I was sitting at the dinner table a couple of weeks ago with Finns, Americans and Indians overlooking a beautiful sunset on the Finnish lake. I was the youngest of the bunch and all were highly educated people. The conversation turned to what the Americans thought about the credit crunch and how we ended up here.

Answers were: bad lending – greedy people, poor transparency etc etc etc. All makes sense and I agreed.

However, I failed to chime in my two cents at the time – I was enjoying listening for a change (perhaps I’m just becoming more Finn;)

My two cents for how we ended up here.

If we take it a step further, it’s not just poor lending; it’s our North American insatiable appetite – for everything. We want bigger houses, more cars, more trips, more clothes, more food, more, more, more…

So, yes it was greed and poor lending. But, at the end of the day, it was our culture that got us into this mess. We wanted more than we could chew, more than we could afford. And no one was there (not even our morals) to tell us that this was a bad thing. To the contrary, our culture encouraged it.

But, it’s like anything in life. Too much of a good thing is no longer a good thing. A few drinks at the bar, great, a few too many? Bad… Free time, great, too much? Boring…
It’s about the balance. And our addiction to growth is anything but balanced.

Now, not everyone acted like this and due to our complex financial system, we’re all paying for it, whether we knew when to tighten the belt or not. That’s the global society we live in.

I’m reading a book right now called “Deep Economy” and the main point the author gets across is “more ≠ better”. McKibben dives into the problems with our obsession with growth and offers a compelling case for shifting our “growth” focus towards the local economy. End result – a “community” focus that cares about the people and invests in the people.

It’s a thought provoking argument. Especially now when people have lost some 30% of their savings, the question of “where to go from here?” is probably a good question to ask.

That also means asking yourself, “what makes me happy?” Seriously, take some time to ponder this one.
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What makes me happy? Well, currently, this one image makes me burst out into laughter (I’m pretty cooky sometimes…) but, overall, I think it’s the simple things that I get a real joy from, like, looking at tree reflections on a lake. But thinking big and seeing big opportunities also gets me incredibly excited.

The Globe has some good reflections on what people are thinking about during this market crisis. Interesting indeed…

So, where do we go from here?

I think, by answering the previous question, you’ve got part of your answer already;)

As for that kitchen table talk, we were all there as a “growth venturing” team. Yep, I’m still in love with the idea of high growth entrepreneurship, where the sky is the limit…

So, when it comes to the “growth” question, looks like I’ve still got some pondering to do;)

Categories: Entrepreneurship (Growth Venturing) · Global Issues · Sustainability · Uncategorized
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Canadian Federal Election: debating and voting and pondering…

October 8, 2008 · 3 Comments

THE BALLOT

I cast my ballot today – 10€ express post…. Stood there wanting to spend 0.80€ (for regular mail) and thought twice – Jane, your vote is worth 10€.

Anyways, seeing as the election debate was almost a week ago, I only watched it a couple days ago so this is very late news but newsworthy on this blog nonetheless ;)

THE DEBATE:

May was awesome. Favourite line – “You should really read the OECD report – that’s a good read.” I’m so happy that the Greens are moving up. And on a similar note, I was happy that May & Dion (and Layton?) brought up other countries – I think it’s important to benchmark and see where other nations are – i.e. previous post on how we’re practically last on the list when it comes to the environment.

Seeing as I’m a pro-environment person, it was good for me to sit and watch the other discussions. As for the economy, Harper would probably do the best job, but he’s not saying anything substantial besides the fact that he would do the best job – HOW? Finally, a platform came out after, but it’s not enough. This credit crunch is/will affect us and he’s ho humming about it. As for Layton’s attack on the corporate tax rates – I haven’t paid attention to it too much, but I know that if we want a strong Canada in a global world, we need to bring investment here – having a low corporate tax rate is important for our competitiveness. So, although I agree with Layton on certain things (thanks for bringing up the First Nations!) – the answer to all of our problems isn’t just about cutting the corporate tax rate.

As for the “are the manufacturing jobs gone for good” question – I almost agree with Harper on that – economies shift, job losses must equal job creation but not necessarily in the same sector. So, I agree with supporting some industries (in sustainable ways that supports the communities) but I disagree with keeping jobs for the sake of keeping the same jobs open. We need to invest in high value added (as will be a post soon on Thunder Bay’s biofuel industry). However, that being said, most of the candidates were of the same opinion I believe. The key point is that the new jobs cannot be in the low wage, low value jobs.

I won’t continue… I have work to do. Canadian politics can be pretty boring and yappy and so at first I thought that the American debate would be better since they didn’t cut into each other  – like our politicians do incessantly like school children. BUT.. to be honest, it was kind of refreshing. THEY DEBATED, unlike Palin & Biden;) They could lessen the finger jabbing though and personal attacks, that gets old fast…

MY CONFUSED THOUGHTS…

I just voted, and I’m still happy with who I voted for, but for an election that I put quite the effort into understanding all of the issues, I still don’t get it all.

It seems as though I’m in the midst of regaining my “what’s right in the world” view.

I agree with free markets and international trade but I also agree that we should support the local economy for sustainability & community sake.

I agree with economic growth but I know that growth can’t be the end answer – that’s what’s led us into this credit crunch disaster – we all want more that we’re capable of having.

Meh, it’s late. I can ponder this tomorrow ;)

Categories: politics
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Don’t Vote

October 2, 2008 · Leave a Comment

Yes, this is for the American election, but we Canadians have until October 14th!

Categories: politics
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cleantech up despite credit crunch

October 1, 2008 · 6 Comments

Interesting read on Earth2Tech today about how VC investments for the cleantech industry is still breaking records (well, it’s easy to go up from a smaller amount) despite the credit crunch.

Most of the cash is going into algae startups, (making fuel out of scum), smart grid companies and thin film (read the article for more).

But…

…don’t expect the party to last. The Cleantech Group says it expects a slowdown in the coming quarter. There’s no way this overall economic slowdown won’t hurt sectors that need extensive capital to move into production, like biofuels and solar. We’re thinking less capital intensive plays, like green software, will become more popular in the coming months.

Something to think about…

With all of the layoffs going on in the financial industry (all over the world, and hitting many other sectors), where are those intelligent and talented workers going to go? Hopefully many of these people will shift their talents to growing industries like this- i.e. building a more sustainable energy sector.

Categories: Environment · Technology
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