Saturday, October 16, 2021

The True Prohibitive Costs of Externalizing Production:


Off-shoring and out-sourcing production can result in significant savings. The cost of labour, including skilled labour, can often be obtained at a fraction of the price of what it would cost to feed and house a slave, never mind what it would cost to hire a worker locally. Out-sourcing production also allows investors to take advantage of economies of scale, in which manufacturers of components such as micro chips used in computers, cell phones, automobiles, etc. can be purchased much more cheaply than the costs of end-users manufacturing such components for themselves. Economies of scale also allow manufactures to purchase extracted raw materials in bulk at reduced prices. Furthermore, local environmental regulations are often prohibitive to manufacturing. For instance, things requiring the use of rare earth elements –cellular telephones, computer hard drives, electric and hybrid vehicles, flat-screen monitors and televisions, significant defence applications such as electronic displays, guidance systems, lasers, and radar and sonar systems—are primarily produced in China, not because rare earth itself is particularly rare, but because the process of extracting rare earth elements is so highly destructive to the environment –to water, crops, people and animals, etc.—that almost all rare-earth-derived products originate in China. Similarly, the cost of compliance with local regulations protecting worker safety, the safety of the buildings in which they work, etc. can also be externalized by out-sourcing or off-shoring production. Finally, by reinvesting profits in off-shore holdings corporations can avoid paying taxes in their home countries. Externalizing all these costs means that the cost paid by end consumers does not include or reflect the social and environmental costs borne by the citizens of the countries in which the goods they consume are produced.

The externalization of carbon emissions:

Another aspect of out-sourcing and off-shoring production is the externalization of carbon emissions. Under the status quo responsibility for carbon emissions that take place in another country are also externalized, and end consumers in wealthy countries escape responsibility and accountability, not only for any fossil fuels used in 2nd, 3rd, and 4th country production processes, but also for the shipping of raw materials, components, and finished products.

This is further exacerbated by the purchase of carbon off-sets. Instead of a business or individual reducing their own carbon emissions, they can purchase the right to emit by enabling an equivalent emission-reducing activity somewhere else in the world. By purchasing or otherwise protecting enough jungle in Brazil or Indonesia, for instance, an individual or business wealthy enough to do so can claim to be carbon neutral without actually reducing their own emissions. This option is of course not available to poor people or poor countries who sell control over forests as off-sets to wealthier countries and businesses. The purchase of carbon-offsets may confer carbon neutrality on some wealthy emitters, but at the cost of increased global economic disparity.

Over-reliance on Global Supply Chains:

The current and on-going interruptions in supply chains are also due in large part to the externalizing production costs. The COVID 19 pandemic illuminated the global economies reliance on a highly complex global web of suppliers of raw materials, components, manufactures, end consumers, and the just-on-time-delivery of most of the above. In the early days of the pandemic this was manifest in the shortage of PPEs—masks and such—after borders were closed. Today factory closures due to poor distribution of vaccines and the resulting COVID outbreaks, interruptions in shipping and overland transport, a shortage in computer chips, etc. continue to impede a return to normal. Over-reliance on global supply chains intended to externalize and minimize production costs are no longer able to adequately supply existing demand. Just-in-time-delivery seems to be a thing of the past when it comes to everything from automobiles to refrigerators to Christmas gifts. Pivoting to this new reality requires a reconstruction of the dominant business model—something that is going to take considerable time.

Geopolitics is also playing a role. First the Trump administration, and now the Biden administration, see China as a major threat and adversary. However sanctions on China and tariffs on Chinese products also hurt US businesses and corporations, and will therefore be limited in scope. EU reliance on Russian gas is also providing Russia with the opportunity to limit access to Russian gas to further their political objectives. The degree to which a country can prioritize its political objectives over economic considerations depends to a considerable extent on how reliant its economy is on access to goods supplied by, and access to markets of their political adversaries. Western countries have allowed their economies to become particularly reliant on access to out-sourced goods and off-shore production.

Challenges:

Can Western countries successfully extricate themselves from their over-reliance on externalized production costs? Will their economies and social safety nets be able to withstand such a transition?

The greatest challenge of all is reducing global Greenhouse Gas emissions while allowing corporations to externalize the cost of cutting emissions to countries ill-equipped to reduce them. It is simply unrealistic to assume that the countries producing our consumer goods will willingly cut their emissions without compensation from the countries consuming the lion's share of the goods they produce. Yet the carbon emission reduction strategies and proposals of Western countries do not include incentives to induce developing and poor countries—the very countries to which they have externalized the costs of their high-consumption life-styles—to reduce their emissions. This while the countries least responsible but most affected, and least able to mitigate against the effects of extreme weather events—cyclones, floods, droughts, mudslides, etc.—bare the brunt of the burden, as climate refugees, along with economic and political refugees, are warehoused in concentration camps because the developed countries that once colonized don't want them, ostensibly because they are unvaccinated.

The reality is that an over-privileged few are benefiting from an unjust global supply chain and distribution of resources, while much of the cost of this economic development model is borne by those too powerless to do anything about it.


Saturday, September 25, 2021

THE PLANET CANNOT BE SAVED WITHOUT GLOBAL REGIME CHANGE



All countries without exception are interlinked and interdependent in the global market place. This reality became starkly evident in the early days of this pandemic when more and more countries closed their borders, resulting in interruptions in supply chains that caused many factories to grind to a halt. Many countries had also outsourced the manufacture their own PPEs, and during border closures and lockdowns struggled to obtain enough PPEs to keep their populations and healthcare professionals safe. Indeed, most of what we consume is manufactured elsewhere, where the costs of production are considerably lower. Outsourcing production not only results in huge savings in labour costs; it also evades the much stricter environmental standards, workers rights, and workplace safety standards in place in much wealthier consumer nations. The raw materials and energy required for manufacture are also sourced from countries all over the world, from whichever country can supply the demand at the lowest cost. Almost every good we consume, from cell phones to clothes to automobiles to food, involves the coordinated actions of a complex global web of people from many countries around the world. Restrictions on the movement of goods and services are minimal, and efforts are being made to further reduce them through minimizing government intervention –through the promotion of what is called Free Trade. The remarkable thing is that for the most part it is self-regulating. For middle class and upper middle class this system has been working well, providing them with an ever increasing array of consumer goods at affordable prices. They most anxiously await the full recovery of this economic system in the wake of disruptions caused by the pandemic.


But can a self-regulating system, characterized by minimal government intervention, respond to that other even greater existential crisis –to global warming? Is it simply a matter of switching over to renewable energy so that economic growth can continue unabated without destroying the planet? Is national governments' “putting a price on pollution” and setting carbon emission reduction targets going to be enough? To date even significantly reducing carbon emissions within our borders has proved to be a challenge, especially for countries whose economies rely on the extraction and exportation of fossil fuels. Should countries and corporations be allowed to exempt themselves from lower emission requirements in exchange for buying up carbon syncs that presumably offset their emissions? (forests etc. known to sequester carbon) Externalizing production costs has become essential to compete in the global marketplace; only by outsourcing production to countries with grossly underpaid workers, often working in abysmal conditions, in countries with minimal or unenforced labour and environmental standards, can suppliers supply the insatiable appetites of consumers at competitive prices. The social and environmental costs will be borne by others in the countries that produce the goods we consume.


But due to the global nature of the climate crisis the cost of carbon emissions cannot be externalized. Reduction in global carbon emissions cannot be achieved without the cooperation of all the countries that supply the world's consumer goods. The refrain that “We are all in this together”, belied by the global distribution of vaccines, has to become much more than a euphemism if the worsening of the global climate apocalypse is to be avoided. Even countries that have managed to meet national carbon emissions targets within their borders are not doing their part if they continue to import consumer goods with a high carbon footprint. Emissions must be reduced everywhere in the chain of the production process, from the extraction and shipping of raw materials, to the processing of materials into metals, plastics, etc., to the fabrication and assembly of all components into the end products, and the shipping of all of the above. That's a lot of emissions that aren't accounted for in consumer prices, but nonetheless form part and parcel of emissions embodied in the goods we consume. To continue this pattern of consumption is to continue to participate in ecocide and self-annihilation, regardless of how many EVs we buy or solar panels we install. 

 

Can developing and newly industrialized countries be relied upon to voluntarily reduce their emissions in a way that not even most wealthy countries have thus far been willing to do? Can those stitching our clothes together, or working long hours in unsafe working conditions, earning a pittance insufficient to properly house or feed themselves, be expected set aside all immediate existential threats to themselves and their families and get on board with the climate agenda of a few rich nations? If they are not, will we encourage them by financing their transition to green energy? Or will we resort to some form of coercion? Without a pan-global government, who would do the coercing? The under-funded UN, in which five countries who almost never agree on anything have veto power, is not up to the task, much less the WHO, whose pleas for a more equitable distribution of vaccines continue to fall on deaf ears. If rich countries were to put tariffs on all goods imported from non-compliant countries, would that result in reduced emissions? Or would that only result in even more deplorable working conditions as suppliers try to keep up profits despite tariffs? What about an outright ban on such imports? But that would hurt compliant rich countries as well, because they would have to pay the full cost of production of consumer goods. All the externalized costs –the cheap labour, the lax or poor worker safety and environmental laws, etc. that made these imported goods so affordable--would then have to be added to the sales price. Citizens of rich nations would have to absorb, not only the costs of reducing their own emissions, but also the higher consumer prices required to pay for the transition to green energy in the countries producing these goods, resulting in inflation. Perhaps that is as it should be, since it is the citizens of rich nations that, because of their high levels of consumption, are primarily responsible for global warming. When we moved industry off shore we also moved their carbon emissions off shore, out of our national jurisdiction, but they still take place on the same planet. It is urgent that we take ownership of all emissions associated with the products we consume, including those being produced offshore.


To date even most relatively wealthy countries haven't done much to reduce emissions, despite the devastating impact of increasingly frequent extreme weather events. There are a number of reasons for this. Rich countries can deal with catastrophic weather events, and are becoming increasing adept at preventing economic, political and climate refugees from entering their countries. Ironically the high costs of dealing with emergency responses and the rebuilding required after a fire, flood, hurricane or other extreme weather event register as being of net-benefit to the country in the accounting. The billions of dollars in expenditures such events require all contribute to the GDP and therefore register as economic growth. A few good storms or fires or floods can boost economic growth, while climate action –shuttering all fossil fuel and related industries—detracts from economic growth. As long as the economy is in the driver's seat, in the short term governments are more likely to choose coping with climate change and extreme weather events over the slow almost imperceptible benefits of reduction of global warming in the longer term –a far longer term than the term in office of any elected government. Even when more and more of the general population is citing climate change as the number one issue facing us today, governments are slow to take action. Even political parties who include concern about carbon emissions in their election platforms are only addressing domestic emissions; they do not have a plan for getting poor and newly industrialized nations on board. They make no mention of the carbon emissions embodied in all the imported goods we consume. They do not acknowledge that the economy and perpetual economic growth can no longer remain in the drivers seat if we are to avert a complete climate apocalypse. Not nationally, not globally. Up until now we have left the allocation and use of resources to the algorithm of supply and demand, in which suppliers competed with each other to supply demand until equilibrium was reached. Now we need to suppress our inclination to compete and replace it with an inclination to cooperate. Unless a spirit of cooperation occupies the drivers seat we are doomed. That transition could prove to be an even more formidable obstacle to climate action than does the transition to renewable energy sources.  But we better get on with it, because time is running out, and without regime change we have no future.


Sunday, September 5, 2021

From COVID Prevention to Coexistance:




COVID vaccinations have become a very polarizing issue in Canada and elsewhere. The long-awaited vaccinations have arrived, but the promised salvation and return to normalcy remain elusive. The unvaccinated are increasingly being singled out as the primary obstacle to normalcy. To be sure, not all of the unvaccinated are unvaccinated because they are refusing vaccinations. Many –children under twelve and those with allergies to vaccine components for instance—would be refused vaccines even if they wanted one. But those who are eligible and nevertheless have not availed themselves of readily available vaccines are increasingly being disparaged and vilified as selfish greedy individualists whose non-compliance regarding vaccinations is prioritizing their freedom to choose over the common good. The vaccines are safe, approved by public health, and any side effects are negligible when compared to the risks of severe infection and possible death due to COVID infections. Severe infections requiring hospitalization, and scarce resources jeopardize not only those so infected, but all others they end up infecting, and many many others being denied access to increasingly scarce healthcare resources –a triple jeopardy. It all seems pretty black and white –the us who are fully-vaccinated and the them who are not. The incumbent Liberals, who have opportunistically called an election in the midst of this pandemic, are exploiting and exacerbating this great divide, betting that the fully vaccinated majority will join them in denigrating and vilifying the unvaccinated, and vote Liberal. A small number of very vocal and increasingly confrontational anti-vaxers are targeting politicians on the campaign trail and impeding access to hospitals by their actions. Despite being only a very small percentage of the so-called vaccine-hesitant, conveniently for the Liberals, they have become the face of, and representative of all those opting out of vaccinations.


In reality things are a bit more nuanced than that. Could it be that some of the claims being made about vaccines are not as black and white as the official narrative leads us to believe? Lets take a closer look at some of them:


  • The Vaccines are safe: In Canada expedited approval has been granted to AstraZeneca, Pfizer and Moderna vaccines under an Interim Order Respecting the Importation, Sale and Advertising of Drugs for Use in Relation to COVID-19 signed into effect by by the Minister of Health on Sept. 16, 2020. Expedited approval was deemed necessary because of the severity of COVID 19; going through normal channels for approval and waiting for more information about unforeseen long-term effects would have cost too many lives and overwhelmed the capacity of our healthcare systems. The efficacy of these vaccines at preventing serious illness and death in the short term has been deemed to outweigh any known and as yet unknown possible long-term adverse side effects. This interim order will expire on Sept. 16, 2021, but provisions to extend it are already underway:


As we reported, since the beginning of the COVID-19 pandemic, Health Canada established emergency pathways to expedite review and approval of drugs and medical devices for use in relation to COVID-19 through Interim Orders. Health Canada intends to leverage and build upon those emergency pathways, as well as other existing policies and procedures, in updating the regulatory framework for drugs and medical devices. (source: Canada: Health Canada's Proposed Amendments To The Food And Drug Regulations And The Medical Devices Regulations)



Most authorized vaccines in the US have been authorized for emergency use only (EUA). However, in August Pfizer was given full approval, despite the fact that it is far too early to know what, if any, the long term side-effects might be. Because these long-term side-effects remain unknown there are
no grounds for presuming there will be no serious delayed side-effects resulting from the use of the vaccine. Nor are there grounds to assume that there will be. It would be more accurate to say based on the scientific evidence to date the vaccines are presumed to be safe. While the known risks of side-effects caused by the vaccines are minimal in comparison with the severe illness and death that the virus often causes, the long-term risks associated with inoculations are unknown, and cannot be dismissed. The vaccine-hesitant may simply be less predisposed to ignore them than are pro-vaxers. The evidence suggests that, at least in the short term, vaccines are relatively safe compared to the risks associated with becoming infected.

The confidence of vaccine manufactures themselves is more in line with that of the vaccine-hesitant than with the pro-vaxers. Manufacturers are insisting on indemnity from prosecution for any unforeseen consequences resulting from the use of their products. Almost all countries have agreed to grant that indemnity, with a few exceptions; India, for instance, cannot procure and import vaccines because of it's refusal to grant manufacturers indemnity. Manufacturers are required to continue to conduct clinical studies on the long-term effects of their vaccines for five years or more.

  • The efficacy of vaccines: References to the efficacy of vaccines are often confusing. The efficacy of vaccines is actually a measurement of how likely a vaccinated person is to become so ill they require hospitalization, ICU care, and/or die as the result of a COVID infection. It is not a measurement their immunity, nor their likelihood of infecting others.

    While there is statistical evidence to suggest that fully-vaccinated people are less likely to become infected, and less likely to infect others, if they
    do become infected, how much less likely they are to become infected and infect others is much more difficult to ascertain. There are a number of variables at play here. Despite frequent references to “a pandemic of the unvaccinated”, we now know that “breakthrough infections” in which fully-vaccinated become infected do occur, and they can go on to infect others. How frequently such breakthrough infections occur is largely unknown.

    Because fully-vaccinated people are less likely to show symptoms they may not even know they are infected, and are therefore less likely to present for testing. Continued reliance on self-assessments as the primary indicator of infections –the daily monitoring of symptoms—will not detect asymptomatic infections, so the number of breakthrough infections may be much higher than the statistics on known infections imply. This statistical omission is further exacerbated because the fully-vaccinated are often exempt from the frequent random testing requirements imposed on the unvaccinated.

    Furthermore, statistical data on the efficacy of vaccines doesn't always distinguish between the original SARS-CoV-2 and its variants; the efficacy of a vaccine against the now-dominant highly contagious and more virulent Delta variant is markedly lower than the level of protection vaccines conferred on those exposed to the original SARS-CoV-2 virus. Data on breakthrough cases –infections of the fully-vaccinated—does not give us a very complete picture of the number of breakthrough infections in Canada. We know that with the Delta variant breakthrough cases are on the rise. Fully-vaccinated people are less likely to show symptoms, and are usually not screened unless they happen to live in an area with a high prevalence of the virus or are identified as being a close contact or were in a situation where a breakout has occurred. However, if they are infected with the now-dominant Delta virus, their viral load is likely to be equal to that of an unvaccinated person –they will be equally contagious. (See: What do we know about breakthrough COVID-19 cases? Experts break down the science)



Finally, the efficacy of vaccines is also known to wane over time. Although Canada is now a world leader in terms of the percentage of the population that has been fully-vaccinated, most of us have not been fully-vaccinated for all that long. Israel might be a far better bellwether in this regard, because it was the first to vaccinate the majority of its population, almost exclusively with Pfizer. Israel began vaccinating its population in December 2020, and many Israelis received their second dose soon after their first dose in early 2021. Perhaps
too soon after their first dose. While COVID news stories in Canada and much of the world talked about a “pandemic of the unvaccinated”, Israel talked of a pandemic of the double-dosed vaccinated. Either because the efficacy of vaccines is significantly less after six months—some studies suggest as low as 29 %; or because the second dose was administered too soon after the first; or because most were infected with the far more contagious far more virulent Delta variant; or most probably some combination of all three of these factors, many fully-vaccinated (two dose) Israelis ended up being hospitalized, some in ICUs:

What is clear is that “breakthrough” cases are not the rare events the term implies. As of 15 August, 514 Israelis were hospitalized with severe or critical COVID-19, a 31% increase from just 4 days earlier. Of the 514, 59% were fully vaccinated. Of the vaccinated, 87% were 60 or older. [As in Canada, the elderly were the first to be vaccinated. The elderly are not only among the most vulnerable; because they also received their vaccinations earlier their immunity has had more time to wear off.] (Source: A grim warning from Israel: Vaccination blunts, but does not defeat Delta)

  • Natural Immunity: Among the unvaccinated are those who have recovered from a COVID 19 infection and those who are generally healthy and simply assume they will recover if they do become infected. This assumption is probably fairly well-founded, since most healthy individuals do indeed recover while self-isolating at home and the vast majority of positive cases do not require hospitalization. In the early days of the pandemic people with mild symptoms were actually discouraged from presenting for testing to avoid further overwhelming already overwhelmed testing facilities. Fighting the infection conferred natural immunity on recovered individuals –an immunity that may well be superior to, and longer-lasting than the immunity conferred by vaccines. Some say the immunity of recovered COVID cases would not be bolstered by even one dose of a vaccine, and getting two doses is almost certainly pointless. Others say that their natural immunity may not extend to protection against new more virulent variants such as Delta, and recommend that recovered COVID cases also be fully-vaccinated.

    But, as we have seen above, even the fully-vaccinated may not be adequately protected from new and emerging variants. It is entirely possible that unvaccinated fully-recovered COVID cases have greater immunity than do the fully-vaccinated. The presence and number of antibodies can only be detected by a serology (blood) test. Serology tests are also the only way of determining if a recovered asymptomatic person was ever infected by COVID 19 in the first place. Certainly a person whose serology test indicates that he or she has had COVID and retains sufficient antibodies to fight off new infections should not be obliged to get vaccinated!

  • Long-haulers: Little is known about long-haulers, but we are learning more. Even the definition of a long-hauler is not widely agreed upon. Long-haulers are those who continue to, or begin to show symptoms long after most normal positive COVID cases have fully recovered. Their illness is sometimes referred to as a post-COVID malady, although some never even knew they had been infected until serology tests proved otherwise. These illnesses can be quite serious. Some children, who had initially remained symptom-free in the early days of their infections, were later hospitalized because of delayed adverse reactions to the infection.

  • Herd immunity: Herd immunity is no longer attainable. The numbers required to reach herd immunity have risen with the advent of new, much more contagious, and more virulent variants of the virus. It is no longer 70 % but 90 % of the population that must be immune to the virus to achieve herd immunity. Given that over 10 % of the population is comprised of children under twelve years of age who cannot be vaccinated, 90 % immunity is unachievable. If you add those who have allergies to that number, and all those experiencing breakthrough infections despite being fully vaccinated to that number, striving to achieve herd immunity is futile.

    This reality, though seldom stated, is reflected in the subtext of current COVID policies. The strategy is now to devise methods in which we can
    coexist with the virus. While vaccinations cannot end the spread of the virus and newly emerging variants, they can allow for the resumption of economic and leisure activity by the fully vaccinated. The incidence of severe illness and death is low enough among the fully vaccinated that they can be allowed to shop, travel, eat in restaurants, attend theatres, sports events and schools, and most importantly, work, without overwhelming the healthcare systems. But only if all eligible people become fully-vaccinated. Hence the incessant push to get everyone vaccinated. Those relatively few serious breakthrough infections, along with the serious infections among unvaccinated children and serious non-COVID illnesses, can all be accommodated by the healthcare system as long as there aren't large numbers of seriously ill unvaccinated COVID victims taking up most of the ICU beds.

These are but a few of the considerations to bear in mind when trying to make sense of the ever-changing COVID 19 protocols, vaccine passports, and vaccine hesitancy. Thinks aren't as black and white as they are made out to be. Some of the inconsistencies are due to trade-offs when public health policies are deemed to be too great an impediment to economic recovery. One has to parse out public health considerations from political considerations from economic considerations, all of which are often conflated by government recommendations and policies.


Public Health is administered by the provinces, and policies vary from province to province. A look at what COVID policies can do and cannot do provide clues as to whether they are primarily designed to prevent the spread of the virus, or allow for the resumption of full participation in the economy as producers, providers of services, and as consumers. We will take a cursory look at a few protocols and policies that remain in effect, that have been changed or relaxed, and new exemptions to certain requirements. This table does not capture all of the nuances, but the number of checks in the right-hand column, and particularly policies 1, 5, 6, and 8 which do absolutely nothing to prevent spread or transmission, are clearly designed to promote economic recovery in the midst of a pandemic rather than prevent or slow transmission. Note that the relaxing of student self-assessment symptoms not only allows more mildly symptomatic children to attend school; it also allows their parents to go to work while the child is in school.The granting of exemptions to the fully-vaccinated and the asymptomatic underscore that concern for the economy has now eclipsed concern about the spread of the virus. Vaccinations still play a crucial role, not because they will result in herd immunity and an end to the pandemic, but because the fully-vaccinated for the most part will be able to function normally even when they are infected. This will require periodic booster shots as the efficacy of vaccines wears off. The healthcare system can cope with a few cases of severe breakthrough infections, as well as non-COVID critical illnesses, as long as enough of the unvaccinated get vaccinated to ensure that the healthcare system is not once again overwhelmed by severe COVID cases.




Sunday, August 15, 2021

Challenges to Addressing the Climate Crisis in a Finite World


Okay, so now it's official. The UN has spoken. Their verdict is in. They have finally named the elephant in the room. Global warming is happening faster than anticipated, and it is now too late to prevent it.

Although there's no stopping it, we can mitigate it; we can plan for how to best cope with inevitable future extreme weather events that will undoubtedly be even worse than those we are experiencing now. If we act now we may even still be left with a somewhat livable planet. But precisely who needs to act? And exactly what must we/they do/stop doing, and start doing? What is the plan, and how will it be implemented? Who, if anyone, is in charge? Questions abound, but definitive answers remain elusive. Some of the most obvious questions to climate action are:

  1. Is climate action compatible with democracy? Most signatories to climate agreements are elected representatives of democracies. Will enough of the voters in each of these democratic nations elect representatives with an unwavering commitment to acting effectively, decisively, and immediately? Or will democracy show itself to be yet another obstacle rather than a tool for implementing effective, decisive and immediate climate action?

  2. Is climate action compatible with the global free-market economic development model? All industries and businesses are in competition with each other in the global market place. The most “successful” of these are those who manage to increase efficiency and productivity by automation and by minimizing and/or externalizing production costs. Will these industries be able to remain competitive and survive if they agree to meet carbon emission reduction targets? If not, what, if anything, will compel these industries to stop externalizing production costs while reducing their own carbon emissions? What must happen to ensure that industries in a global competitive marketplace will no longer contribute to out-of-control environmental deficits by shifting production costs to jurisdictions with lax or unenforced environmental laws? What needs to happen to stop fossil fuel industries from supplying such jurisdictions with coal and oil? What needs to happen before the emissions associated with burning some of the dirtiest fuel available to transport fuel, other raw materials, and finished consumer goods tens of thousands of miles across our dying oceans? Is perpetual economic growth, expansion, exploitation and destruction of finite resources compatible with sustaining a livable planet?

  3. Is climate action compatible with global inequality? Clearly, as exemplified by global vaccine distribution, some countries are economically far better able to undertake climate action than others. Will economic compensation be provided to incentivize countries that lack the economic resources to do so? If so, who will provide these economic resources?

    Furthermore, there is a very strong correlation between carbon emissions and levels of consumption. If countries and individuals with high levels of consumption –large carbon footprints—are primarily responsible for the global climate crisis, will they also bear the brunt of the costs of climate action? The
    impact of global warming is felt by everyone, but especially by poor people suffering because of extreme weather events –floods, droughts, crop failures, out-of-control forest fires, cyclones and typhoons, etc. Not only is mitigation against further increases in global temperature absolutely necessary; the consequences of on-going extreme weather events must also be mitigated against. How will we accommodate all those climate refugees and all those displaced by extreme weather events? Who will feed the destitute? Will climate refugees be allowed to immigrate to more hospitable climates? Will those most adversely affected be allowed to sue those most responsible for damages? Or will they be left to drown in the Mediterranean, warehoused in make-shift concentration camps, or deported back to where they came from or some third country? Can carbon emissions be reduced without the active participation of the 80% of the world's population who collectively only consume 20% of the resources, and are therefore only responsible for 20 % of carbon emissions? Or must global inequality be addressed before international cooperation on climate action can be achieved?

  4. Will consumer choices significantly reduce carbon emissions? Will the purchasing of solar panels, LED light bulbs, windmills, and electric cars by a relatively small percentage of the world's well-heeled super-consumers significantly reduce global carbon emissions? Or must over-privileged super-consumers, super-emitters be eliminated in order to save the planet?

  5. Is there an entity that can and will assume responsibility for this global climate crisis? Is the United Nations, in which five countries—China, France, Russia, the United Kingdom and the United States—hold veto power, be capable of coming up with an agreement and a plan, oversee the implementation of that plan, and enforce compliance? If not the UN, then who? Alas, there is no other pan-global entity on the horizon capable of undertaking such a task.

  6. Is international cooperation on the part of nation states even possible? What we have seen to date is a blame-game and finger-pointing, with countries absolving themselves of responsibility while blaming each other for the crisis: developed countries blame developing countries for using oil and coal as sources of energy for fuelling their development; developing countries are quick to point out that developed countries have centuries of history of carbon emission, all of which contributed to the current crisis; countries like Canada, with relatively low aggregate levels of carbon emissions blame countries like China, with relatively high aggregate emission levels; Countries like China, with relatively low per capita emission levels point to countries like Canada, which has one of the highest per capita emission levels in the world; developing countries are quick to point out that most of the fossil fuel energy they use is used to manufacture goods for consumers living in developed countries, so it is consumers in developed countries who are “demanding” and driving their use of fossil fuels in their production processes; etc. Oil and fossil fuel producing countries are quick to point out the world's dependence on fossil fuel energy and plastics, and the impossibility of overnight transitions. This blame-game and finger-pointing is used by pretty much all nation states as an excuse for their own inaction, thus precluding any possibility of international cooperation on the climate crisis.

  7. Can coercion, threats of sanctions and/or military might etc. by wealthy, powerful, over-privileged, over-developed, and over-consuming nations substitute for voluntary global cooperation on the part of the majority of less powerful, less developed, low consumption, and underprivileged poor nations? Can the crisis be addressed without also addressing issues of climate injustice and economic injustice? Would the energy and fossil fuel emissions required to coerce the unwilling into compliance be offset by reductions in the comparatively minuscule carbon emissions of billions of the world's have-nots?Is there any point in even worrying about the carbon emissions of the "have-nots", given that the life-styles of the "haves" are the primary driver of carbon emissions? What would the use of coercion, sanctions and/or the use of military persuasion on the "haves"look like? How likely is that

This is but a a short, by no means comprehensive, list of questions that must be answered if our children are to have a future. I have no answers. The prognosis looks bleak. In close correlation with responsibility for carbon emissions, the benefits have also accrued to a very small percentage of the world's population, while the costs of the crisis are born by all—especially by the poorest, most vulnerable and most powerless majority of those living in the two-thirds world. Any thoughts, suggestions, and/or solutions you have regarding this existential crisis would be most welcome!



Friday, July 30, 2021

Emancipation or Obfuscation? The economics of slavery

 



Before emancipation slaves were very valuable, marketable, living commodities. Slavery was abolished throughout the British empire in 1833, and in1863 in the US. Almost 200 years later it is very difficult for many of us to imagine human beings reduced to commodities to be bought and sold in the marketplace like cattle.

Perhaps looking at how dairy cattle –other living, breathing, marketable commodities--are bought and sold well deepen our understanding of slavery. There are certain similarities. Like cattle, slaves were investments. The prices buyers were willing to pay for a slave depended on how large a return such an investment was expected to yield. Like cattle, the age, health, and expected duration of the work-life of the slave in question were all considerations in accessing the market value of a slave. Also, like cattle, there were high maintenance costs associated with ownership; both cattle and slaves need to be fed, housed, and cared for. And, as with all commodities, a high demand for labour would raise the price of a slave in the same way that high demand for milk would increase the market-value of a dairy cow. In the 1800s there was very high demand for labour, especially on plantations.

In 1850 the average price of a slave ranged from $14,000 to $240,000 in today's dollars. Today a dairy cow would fetch somewhere between $900 and $3,000. Of course a young healthy slave or dairy cow would fetch far more than an old decrepit one. At the end of their productive years dairy cows could be sold to the glue factory or turned into dog food. Not so for slaves; if they outlived their usefulness they became a liability. Nevertheless, and not surprisingly, slaves fetched far more in the marketplace than dairy cows do, the former being far more versatile than the latter, the use-life expectancy of  slaves much longer, and slave labour being far scarcer than milk.

That was then. This is now. Today we are celebrating the 187th anniversary of the emancipation of slaves, and congratulating ourselves for having abolished that ancient barbaric practice. But what is absent from the discourse is how we avail ourselves of cheap labour in this day and age. We often don't even give a second thought to today's treatment of labourers, which is in many respects worse than slavery. Slaves were the private property of slave owners, as dairy cows continue to be the private property of dairy farmers. Private property rights were and are highly respected. The loss of private property was mitigated against.  Great care was taken to ensure that the private property was fed well enough and kept healthy enough to maintain maximum  productivity.

Today most labour (apart from service sector labour) is out-sourced. Out-sourcing labour --renting a workforce elsewhere—allows contractors to avoid high maintenance costs, along with the responsibility of looking after the well being and safety of their workforce. Such workforces can be obtained for only a small fraction of what it would have cost to house, clothe and feed an equivalent number of slaves. And because the supply of workers greatly exceeds demand, such a workforce can be acquired for next to nothing. And you don't have to pay their medical bills. Should a worker die, or should the factory catch fire or the roof fall in killing several or all of them, a subcontractor will quickly and easily find alternative replacement workers. And for the same cost as buying a single slave in the 1800s, you can now rent a Haitian worker for fifty years! Or a 10 Sri Lankan worker for 20 years, although your shipping costs may be higher. Furthermore, by outsourcing your labour requirements you can avoid having to comply with local environmental and worker protection laws. And the best part is that you can externalize all of the maintenance and replacement costs of maintaining a workforce.

Yes, we are absolutely right to condemn slavery. But what we have allowed to replace it is in many respects even more despicable. Self-congratulations are not in order. We haven't really abolished slavery; we have only disguised, re-branded, and externalized it. And Western consumers benefit from this because the savings on labour are passed on to consumers in the form of lower prices in our dollar stores, our Walmarts, and Amazon, while overseas workers have no option but to work long hours in unsafe workplaces for sub-subsistence wages. They are no more free than slaves were. We have abolished nothing. We are only obfuscating the issue.

Thursday, July 29, 2021

What does the COVID 19 data tell us about socioeconomic development?

 

If the number of COVID deaths per million is any indication of which countries are the least developed socioeconomically, and it is, the US ranks 21st out of 220 countries, followed by the UK, with 1,896/m and 1,886/m respectively. If we are going to parse out the “socio” from the “economic” in our metric we will have a better understanding of why countries rank as they do. Do the US and UK rank so low because they can't afford to vaccinate their populations or provide adequate treatment to COVID victims? Let's look at where countries of interest rank in terms of GDP per capita and find out:


Here we see that with the exception of Norway, the country with the largest social safety net, the two countries with the lowest GDP/capita have experienced far less COVID deaths/capita than the two countries with the highest GDP/capita. The USA, with a per capita GDP that is roughly 3.5 and 25 times that of the countries with the lowest per capita GDP is experiencing 311 and 8 times the number of deaths per capita. We can conclude that the poor socioeconomic ranking of the USA and UK cannot be attributed to a lack of economic resources. Therefore it must be because of how they are using available resources; the countries with the most economic resources are clearly lagging far behind the others in terms of social development. This should be particularly concerning to all of us, because it is also these two countries are the worst in terms of politically interfering in the affairs of other countries. To borrow a Gunther Frank phrase, they are largely responsible for “the development of underdevelopment”, not only at home, but also in the rest of the world. Ironically these two countries produce their own vaccines, and largely responsible for the abysmal global roll-out of vaccines. (The above statistics were obtained from Worldometer date on July 25 and 26, 2021)

In addition to being among the least developed socially, countries topping the list also suffer from moral depravity. Rather than donating surplus vaccines to countries who desperately need them, they are being allowed to expire. This is as true of Canada as of the USA. The UK is donating some 9 million vaccines to COVAX, most of which are due to expire in September –a time frame far too short for most recipient countries, whose healthcare systems are completely overwhelmed, to distribute them. Meanwhile Pfizer, one of the primary manufactures and distributors of vaccines, is strongly recommending that countries who cannot convince many of their citizens to get even a first dose, nevertheless purchase additional vaccines and offer them as a booster to citizens who have already received 2 doses. Beyond the pale is a campaign circulating on FaceBook that encourages anti-vaxers to book appointments regardless in order to further deplete the supply of available vaccines.

Monday, July 26, 2021

Collaboration or Incineration. Those are the options.

 





Excuses for climate inaction:
  • Our emissions are negligible compared to China's!

  • China: Our per capita emissions are low compared to yours. And besides that, most of what we produce is not even consumed by us.

  • It would be completely irresponsible to cut everyone off of fossil fuels before affordable alternatives are on line. We have reduction targets for 2050.

  • It is the consumers fault. Consumers are not choosing green alternatives.

  • Producers are using too many carbon-intensive production processes, and shipping raw materials across the planet to take advantage of cheap labour and lax environmental laws, only to ship them all the way back again in the form of cheap consumer goods. .

  • Developed countries have been spewing carbon for centuries! That stuff is still up there! Now they just want to keep the rest of us from developing so they can use all the resources themselves.

  • If they want poor countries to reduce emissions, rich countries should provide poor countries with clean technology for free. Not only that. Poor countries should be allowed to sue rich countries for damages resulting from climate change, because it was demand and over-consumption in rich countries by rich consumers that is causing the problem.

  • There is no point in stranding assets, loosing jobs and access to cheap fossil fuels unless other countries do the same. We should not put ourselves at an economic disadvantage until we have iron-clad guarantees that other countries are also going to reduce emissions.


No amount of windmills, solar panels, electric cars, LED light bulbs are going to stop climate change. Stopping and reversing climate change will require an unprecedented level of global cooperation that, if access to COVID vaccines is any indication, is never going to happen. So far I haven't seen any government, or even opposition party for that matter, propose a way to increase global cooperation in a grossly unequal and unjust world. National targets are useless without a serious plan to induce those who cannot afford to collaborate to change their minds. Naomi Klein was right: This changes everything. Because unless everything changes, nothing will change.

Tuesday, July 6, 2021

Reducing Global Carbon Emissions: Competition vs. Cooperation


Reducing Global  Carbon Emissions: 

Competition vs. Cooperation

 

As extreme weather events are making abundantly clear, we are not anticipating a climate crisis; we are in the midst of one. Although there are still a few outliers that deny climate change altogether, for the most part there is a general consensus that the status quo is unsustainable and something must be done. Yet most carbon emission reduction targets are set, not for this year, but for some future date –2030, 2050 or the turn of the century. In the interim –that period of time during which the crisis can only worsen—fossil fuel extraction, exploration, and consumption continues to rise. The decision-makers seem to be caught in a catch twenty-two; a damned if we do and a damned if we don't conundrum. Why? Because no country seems to be willing to take action that will place them at an economic disadvantage in the global market place.

For fossil fuel producers this means an unwillingness to strand fossil fuel assets or forfeit jobs without iron-clad assurances that every other producer will do the same. Similarly, countries reliant on fossil fuels to maintain their productivity and increase their competitiveness in the global marketplace will not willingly abandon fossil fuels until there is a cheaper alternative source of energy to replace it. In other words, countries in which economic growth in the global marketplace is contingent on their ability to compete with other countries are unlikely to embrace or endorse a course of action that will reduce their competitiveness. Therefore the dichotomy between competition and cooperation between countries precludes international cooperation on climate action. The predominant global economic development model—considered to be the highest rung on some imagined  ladder of Darwinism social evolution—requires both constant expansion and competition. In a finite world, with finite resources, and a finite ability for the climate and environment to survive further expansion, only a willingness to abandon this economic development model in favour of something more sustainable can save us. How are we to resolve this dilemma and move toward global cooperation?

One of the primary barriers to global cooperation is the blame game. There are many metrics being put forward to assign blame and responsibility for this crisis. The metric favoured by one country is often rejected by others. While some blame producers –fossil fuel extractive industries—for continuing to make fossil fuels available, others blame countries who burn dirtier fuels –coal and such—for the crisis. Some focus on countries' consumption of fossil fuels in their production process for the problem, while others blame those who create a market for such products by purchasing them. Some blame consumers who don't want to spend the extra dollars to buy greener products. Some take a longer view, and absolve themselves of responsibility by putting the onus to take action on countries which have a long history of pumping C02 into the atmosphere ever since the industrial revolution and the invention of internal combustion engines. Still others point to the total emissions of countries, while others look at per-capita emissions. To placate increasingly alarmed citizens without jeopardizing their standing in the global economy many countries are committing to half-measures, future targets and alternative energy sources; a bid to convince citizens that things are under control and they can both have their cake –a robust and growing competitive economy—and eat it too—continue the high levels of consumption to which they are accustomed and to which they feel entitled. Even many of the most vociferous climate advocates seem convinced that by switching to green renewable energy we can continue to enjoy the benefits of economic growth and the commodification of resources indefinitely. They are, of course, deluding themselves and others.

What no one seems ready to admit is that without a consensus the global cooperation necessary to eliminate C02 emissions is simply not going to happen. Some embrace this lack of cooperation as an excuse for doing nothing themselves. Very few have seriously contemplated how to enhance global cooperation in addressing this existential threat. Of all the metrics above, perhaps the most hopeful—the most just, and therefore achievable—is a focus on per-capita emissions. By this metric it is both unjust and unreasonable for Canadians, spewing on average18.5 tons of C02 per person into the atmosphere, to expect Chinese emitting on average 7.38 tons of C02, to further reduce their emissions before Canadians have reduced theirs to at least the same 7.38 tons emitted by the average Chinese person. When and if Canada and other high per-capita emission countries have achieved lowering their emission levels top those of the Chinese we can begin to talk about further reducing the C02 emissions in China and other countries. Once we have all reduced our emissions to the levels of countries like Mali and Greenland --0.09 tons per-capita and 0.03 tons per-capita respectively--the barriers to international cooperation will have been largely removed. If, and only if this has is achieved in a timely manner, cooperation among all steak-holders, will it become possible to avert a total climate apocalypse.

To the contrary–if the same circle-the-wagons our-nation-first approach of wealthy nations in the global COVID vaccine roll-out persists—we are doomed. There is a strong correlation between levels of consumption and levels of C02 emissions. Over-privileged over-consumers cannot realistically expect the underprivileged and destitute to reduce emissions beyond levels to which wealthy nations and individuals are themselves unwilling to reduce their own emissions. Using a stick instead of a carrot to force collaboration—the use of military coercion or sanctions—will only further increase already unsustainable levels of emissions. The only way in which we can have our cake is for the insatiable gluttonous minority to stop eating it. The continued use of an economic development model based on constant expansion and resource extraction/depletion enjoyed by the few is incompatible with sustaining life on this planet. 

 

Can we get there from here? Can we make the necessary global cooperation possible? Theoretically it is entirely possible. Practically it seems unlikely. It seems that the house of cards, the foundation on which the privilege of the over-privileged decision-makers is built, must be torn down. I may be missing something, but I don't see how this is going to happen without first removing decision-making power from the over-privileged. It is my faint hope that exposing the cracks in the foundation will shed some light on the problem. Despite claims to the contrary, allowing market forces to determine the allocation of resources is not a viable option. An alternative more sustainable option must be found and implemented without delay. An alternative economy in which the objective is not growth, but in which we can all thrive, such as that proposed by Kate Raworth. Any suggestions as to how this can best be accomplished?

--Stewart Vriesinga