Category Archives: Markets

Free-All-Countries: Gold Mining and the Polluted Rivers of Central African Republic

Four Chinese-run gold mines should be closed in the Central African Republic because of pollution threatening public health, a parliamentary panel said in a report published on July 14, 2019.  “Ecological disaster,” “polluted river,” “public health threatened,” were some of the phrases used in the report.  “Gold mining by the Chinese firms at Bozoum is not profitable for the state and harmful to the population and the environment,” the commission found after its investigation into mining in the northern town.  “The nature of the ecological disaster discovered onsite justifies the immediate, unconditional halt to these activities,” the report found.

Members of the commission spent four days in Bozoum a month ago in response to “multiple complaints from the population.”  There, they found a badly polluted River Ouham, shorn of several aquatic species following the excavation of its riverbed.  They discovered that a rising death rate in fishing villages as well as shrinking access to clean drinking water.

The investigators also voiced fears that the country’s “resources are being squandered with the complicity of certain ministry of mines officials.”  The CAR is rich in natural resources but riven by conflict which has forced around one in four of its 4.5 million population to flee their homes. Under those circumstances, exploitation of the country’s natural resources is difficult to monitor effectively given that the state only has partial control of its own territory.

Central African Republic Report Cites Ecological Disaster in Calling for Closing of 4 Chinese Gold MInes, Agence France Presse,  July 14, 2019

Why a Dumb Internet is Best

Functional splintering [of the internet] is already happening. When tech companies build “walled gardens”, they decide the rules for what happens inside the walls, and users outside the network are excluded…

Governments are playing catch-up but they will eventually reclaim the regulatory power that has slipped from their grasp. Dictatorships such as China retained control from the start; others, including Russia, are following Beijing. With democracies, too, asserting their jurisdiction over the digital economy, a fragmentation of the internet along national lines is more likely. …The prospect of a “splinternet” has not been lost on governments. To avoid it, Japan’s G20 presidency has pushed for a shared approach to internet governance. In January 2019, prime minister Shinzo Abe called for “data free flow with trust”. The 2019 Osaka summit pledged international co-operation to “encourage the interoperability of different frameworks”.

But Europe is most in the crosshairs of those who warn against fragmentation…US tech giants have not appreciated EU authorities challenging their business model through privacy laws or competition rulings. But more objective commentators, too, fear the EU may cut itself off from the global digital economy. The critics fail to recognise that fragmentation can be the best outcome if values and tastes fundamentally differ…

If Europeans collectively do not want micro-targeted advertising, or artificial intelligence-powered behaviour manipulation, or excessive data collection, then the absence on a European internet of services using such techniques is a gain, not a loss. The price could be to miss out on some services available elsewhere… More probably, non-EU providers will eventually find a way to charge EU users in lieu of monetising their data…Some fear EU rules make it hard to collect the big data sets needed for AI training. But the same point applies. EU consumers may not want AI trained to do intrusive things. In any case, Europe is a big enough market to generate stripped, non-personal data needed for dumber but more tolerable AI, though this may require more harmonised within-EU digital governance. Indeed, even if stricter EU rules splinter the global internet, they also create incentives for more investment into EU-tailored digital products. In the absence of global regulatory agreements, that is a good second best for Europe to aim for.

Excerpts from Martin Sandbu,  Europe Should Not be Afraid of Splinternet,  FT, July 2, 2019

Keep it in Your Backyard Please! The Revolution against Recyclable Plastics

There is no point collecting recyclable waste unless someone is willing to buy it and actually do the recycling. Until late 2017 China was the world’s biggest importer of scrap by far.  All this came to a halt when the Chinese government banned the import of all but the purest scrap material in 2017, killing a trade worth $24bn a year. Waste dealers in the rich world had to scramble to find new buyers. South-East Asia soon emerged as the pre-eminent destination for foreign waste. Unfortunately, the region’s recycling industry is much smaller than China’s; its processing plants were quickly overwhelmed. Plastics from America and Europe have piled up in landfills. Lots of toxic rubbish has simply been torched.

South-East Asian governments are not pleased. They have begun to ban or crimp imports themselves, abruptly diminishing a booming business. On May 28th, 2919 Yeo Bee Yin, Malaysia’s environment minister, complaining that “garbage [was] being traded under the pretext of recycling”, announced that her government would be sending back 3,000 tonnes of foreign plastic. Much of it was of poor quality, she noted, and hence unrecyclable.  Thailand plans to ban plastic-waste imports by 2021. Vietnam’s government has similar ideas. Kate O’Neill of the University of California, Berkeley, reckons these bans are motivated not only by environmental concerns but also by pride: Asia does not want to be the world’s dumping ground.  Rodrigo Duterte, the president of the Philippines, recently threatened to go to war with Canada if it did not take back a shipment of plastic scrap. Canada agreed to take it away…

Excerpts from South-East Asian countries are banning imports of waste for recycling, Economist, June 15, 2019

Another Resource Curse: Amber Fossils

In a bustling market in Tengchong, China, vendors hawk globs of amber, some the size of cantaloupes, with astonishingly pristine fossils inside. Mined across the border in Myanmar, the amber has yielded extraordinary finds—the hatchlings of primitive birds, the feathered tail of a dinosaur, frogs, snakes, a host of insects, and more—allowing scientists to build a detailed chronicle of life in a tropical forest 100 million years ago. 

In 2018, scientists reported 321 new species immaculately preserved in Burmese amber, bringing the cumulative total to 1195. One team recently argued that Burmese amber may boast more biodiversity than any other fossil deposit from the entire reign of the dinosaurs. “You think this can’t even be possible,” says Philip Currie, a paleontologist at the University of Alberta in Edmonton, Canada, “but it’s happening.”

But as much as Burmese amber is a scientist’s dream, it’s also an ethical minefield. The fossils come from conflict-ridden Kachin state in Myanmar… In Kachin, rival political factions compete for the profit yielded by amber and other natural resources. The amber comes from mines near Tanai township in Kachin, where for decades Myanmar’s army and the local Kachin Independence Army, an ethnic insurgency, have battled over control of lucrative resources such as jade, timber, and, most recently, amber. “These commodities are fueling the conflict,” says Paul Donowitz, the Washington, D.C.–based campaign leader for Myanmar at Global Witness, a nongovernmental organization. “They are providing revenue for arms and conflict actors, and the government is launching attacks and killing people and committing human rights abuses to cut off those resources.”

 Visitors to the mines describe a lush terrain transformed into barren hillsides. Tents cover claustrophobic holes up to 100 meters deep but only wide enough for skinny workers, who say they are responsible for their own medical care after accidents. The miners dig down and, when they hit layers of amber, tunnel horizontally with hand tools to dig it out. They sort finds at night, to avoid publicizing valuable discoveries. Amber with fossil inclusions is the most precious, proof after weeks of uncertainty that a mine will be profitable. Reached by phone through an interpreter, miners say both warring sides demand bribes for the rights to an area and equipment—and then tax 10% of the profit.

The amber is then smuggled into China and sold to the highest bidder. Yet if scientists don’t engage in the amber trade, specimens are lost to science.

Exerpts from Joshua Sokol, Troubled Treasure, Science, May 24, 2019

Hunting Down Polluters: Repairing the Ozone Layer

CFC-11 is also known as trichlorofluoromethane, and is one of a number of chloroflurocarbon (CFC) chemicals that were initially developed as refrigerants during the 1930s. However, it took many decades for scientists to discover that when CFCs break down in the atmosphere, they release chlorine atoms that are able to rapidly destroy the ozone layer which protects us from ultraviolet light. A gaping hole in the ozone layer over Antarctica was discovered in the mid 1980s.  The international community agreed the Montreal Protocol in 1987, which banned most of the offending chemicals. Recent research suggests that the hole in the Northern Hemisphere could be fully fixed by the 2030s and Antarctica by the 2060s.

CFC-11 was the second most abundant CFCs and was initially seen to be declining as expected.However in 2018 a team of researchers monitoring the atmosphere found that the rate of decline had slowed by about 50% after 2012.  Further detective work in China by the Environmental Investigation Agency in 2018 seemed to indicate that the country was indeed the source. They found that the illegal chemical was used in the majority of the polyurethane insulation produced by firms they contacted.One seller of CFC-11 estimated that 70% of China’s domestic sales used the illegal gas. The reason was quite simple – CFC-11 is better quality and much cheaper than the alternatives.

This new paper seems to confirm beyond any reasonable doubt that some 40-60% of the increase in emissions is coming from provinces in eastern China.  Using what are termed “top-down” measurements from air monitoring stations in South Korea and Japan, the researchers were able to show that since 2012 CFC-11 has increased from production sites in eastern China.They calculated that there was a 110% rise in emissions from these parts of China for the years 2014-2017 compared to the period between 2008-2012.

“If we look at these extra emissions that we’ve identified from eastern China, it equates to about 35 million tonnes of CO2 being emitted into the atmosphere every year, that’s equivalent to about 10% of UK emissions, or similar to the whole of London.”  The Chinese say they have already started to clamp down on production by what they term “rogue manufacturers”. In  November 2018, several suspects were arrested in Henan province, in possession of 30 tonnes of CFC-11.

Excerpts from Matt McGrath,  Ozone layer: Banned CFCs traced to China say scientists, BBC, May 22, 2019

How Companies Buy Social License: the ExxonMobil Example

The Mobil Foundation sought to use its tax-exempt grants to shape American laws and regulations on issues ranging from the climate crisis to toxic chemicals – with the explicit goal of benefiting Mobil, documents obtained by the Guardian newspaper show.  Recipients of Mobil Foundation grants included Ivy League universities, branches of the National Academies and well-known civic organizations and environmental researchers.  Benefits for Mobil included – in the foundation’s words – funding “a counterpoint to so-called ‘public interest’ groups”, helping Mobil obtain “early access” to scientific research, and offering the oil giant’s executives a forum to “challenge the US Environmental Protection Agency (EPA) behind-the-scenes”….

A third page reveals Mobil Foundation’s efforts to expand its audience inside environmental circles via a grant for the Environmental Law Institute, a half-century-old organization offering environmental law research and education to lawyers and judges.  “Institute publications are widely read in the environmental community and are helpful in communicating industry’s concerns to such organizations,” the entry says. “Mobil Foundation grants will enhance environmental organizations’ views of Mobil, enable us to reach through ELI activities many groups that we do not communicate with, and enable Mobil to participate in their dialogue groups.”

The documents also show Mobil Foundation closely examining the work of individual researchers at dozens of colleges and universities as they made their funding decisions, listing ways that foundation grants would help shape research interests to benefit Mobil, help the company recruit future employees, or help combat environmental and safety regulations that Mobil considered costly.  “It should be a wake-up call for university leaders, because what it says is that fossil fuel funding is not free,” said Geoffrey Supran, a postdoctoral researcher at Harvard and MIT.  “When you take it, you pay with your university’s social license,” Supran said. “You pay by helping facilitate these companies’ political and public relations tactics.”

In some cases, the foundation described how volunteer-staffed not-for-profits had saved Mobil money by doing work that would have otherwise been performed by Mobil’s paid staff, like cleaning birds coated in oil following a Mobil spill.  In 1987, the International Bird Rescue Research Center’s “rapid response and assistance to Mobil’s West Coast pipeline at a spill in Lebec, CA not only defused a potential public relations problem”, Mobil Foundation said, “but saved substantial costs by not requiring our department to fly cross country to respond”.d of trustees at the Woods Hole Oceanographic Institution (recipient of listed donations totalling over $200,000 from Mobil) and a part of UN efforts to study climate change.

Wise ultimately co-authored two UN Intergovernmental Panel on Climate Change reports, serving as a lead author on one. One report chapter Wise co-authored prominently recommended, among other things, burning natural gas (an ExxonMobil product) instead of coal as a way to combat climate change.

Excerpts from How Mobil pushed its oil agenda through ‘charitable giving’, Guardian, June 12, 2019

Your Typing Discloses Who You Are: Behavioral Biometrics

Behavioural biometrics make it possible to identify an individual’s “unique motion fingerprint”,… With the right software, data from a phone’s sensors can reveal details as personal as which part of someone’s foot strikes the pavement first, and how hard; the length of a walker’s stride; the number of strides per minute; and the swing and spring in the walker’s hips and step. It can also work out whether the phone in question is in a handbag, a pocket or held in a hand.

Using these variables, Unifyid, a private company, sorts gaits into about 50,000 distinct types. When coupled with information about a user’s finger pressure and speed on the touchscreen, as well as a device’s regular places of use—as revealed by its gps unit—that user’s identity can be pretty well determined, ction….Behavioural biometrics can, moreover, go beyond verifying a user’s identity. It can also detect circumstances in which it is likely that a fraud is being committed. On a device with a keyboard, for instance, a warning sign is when the typing takes on a staccato style, with a longer-than-usual finger “flight time” between keystrokes. This, according to Aleksander Kijek, head of product at Nethone, a firm in Warsaw that works out behavioural biometrics for companies that sell things online, is an indication that the device has been hijacked and is under the remote control of a computer program rather than a human typist…

Used wisely, behavioural biometrics could be a boon…Used unwisely, however, the system could become yet another electronic spy on people’s privacy, permitting complete strangers to monitor your every action, from the moment you reach for your phone in the morning, to when you fling it on the floor at night.

Excerpts from Behavioural biometrics: Online identification is getting more and more intrusive, Economist, May 23, 2019