Category Archives: Markets

Keeping up with the Joneses: Nuclear Power

Worried the U.S. may be falling behind rivals in nuclear-power technology, the Energy Department plans to spend $115 million to help develop advanced fuels for next-generation reactors.  Under a three-year pilot project announced, the money would go to an Ohio company to produce a more energy-dense uranium, which the nuclear industry has been asking for to support a budding industry of smaller reactors.  Department officials say they plan to award the contract to American Centrifuge Operating, a unit of Centrus Energy Corp. , unless rival companies can make a compelling case by Jan. 22, 2019.

The U.S. nuclear industry is at a crossroads that has jeopardized its workforce in the U.S. and helped fuel the rise of U.S. rivals abroad. The industry, faced with safety concerns, expensive regulations and competition from other fuels, is pushing to reinvent its core technology to be simpler, cheaper and often much smaller….China has become one of the few countries building nuclear-power capacity, and Russia has taken a dominant position in developing projects elsewhere…Russia is the only country capable of producing the higher-enriched uranium the Energy Department’s new program would produce. Without it, the U.S. risks being left out of the global industry’s next stage, said Dan Brouillette, Deputy Energy Secretary.

Excertps from Timothy Puko, New Effort to Develop Advanced Nuclear Fuel, WSJ, Jan. 7, 2018

A Botanical Treasure: Congo

Situated along the banks of the Congo River, the Yangambi Research Station was in its heyday a booming scientific hub, revered for its invaluable work in the Congo Basin throughout the midcentury.

It wasn’t to last. War, political instability and budget cuts were to hamper the center’s survival after Democratic Republic of Congo (DRC) gained independence from its colonial ruler, Belgium, in 1960. The following decades would see skilled staff numbers dwindle, the jungle reclaim its buildings, and the center’s science work come to a stop.  But inside these crumbling walls lay a botanical treasure-trove. Yangambi’s herbarium holds Central Africa’s largest collection of dried plants. In fact, 15% of its 150,000 specimens are so rare, that they can only be found here….

Efforts from the Congolese Institute for Agronomy Research (INERA) could not keep the center running alone.   It was in 2017 that a ‘game changing’ opportunity arrived. INERA and the Meise Botanic Garden partnered with FORETS, a project coordinated by the Center for International Forestry Research (CIFOR)and financed by the European Union…Now, the herbarium has benefitted from a facelift – including a new roof, windows and doors, and a water cistern – soon its staff will be trained in modern preservation techniques and new technologies…Digitization of specimens will enable access to researchers around the world.

Excerpts from AHTZIRI GONZALEZ, Protecting Congo’s botanical treasures, CIFOR Press Release, Jan 11, 2019

How the Shipping Industry Gets its Way: pollution from ships

Do not give the regulated power over the regulators, unless you want consumers to lose out and producers to game the system. ..That lesson has been learned in many places around the world. National regulators are increasingly independent of the firms they regulate. But international ones still have further to go—and none further than the specialised agencies of the United Nations, such as the International Maritime Organisation (IMO) for shipping where the interests of the shipping industry are upheld d in several ways. The first is the distribution of voting rights between countries. At the IMO, for example, Panama and Liberia, with populations of just 4m and 4.8m respectively, can automatically get seats on its decision-making body as they have the world’s biggest merchant fleets.

The second is the assignment of those voting rights by individual countries. Remarkably, many governments have handed voting rights to private-sector firms… At the IMO least 17 countries have assigned their voting rights to flag registries operated by private firms, reckons Transparency International, an anti-corruption group; that adds up to about a tenth of delegates. At an IMO environmental-committee meeting in 2017, almost a third of countries were represented, at least in part, by business interests.

The third way in which producer interests are protected is through a spectacular lack of transparency. The agenda of the IMO’s council in November 2018 in London is available only to those with a password. Journalists are forbidden to report what delegates say or how they vote. There are no rules on the suitability or conflict of interests of delegates. In 2014 St Lucia appointed a Saudi billionaire without previous shipping experience as its IMO representative; a court in London judged in 2016 that the appointment was obtained in order to gain diplomatic immunity against divorce proceedings. There are no limits on the amount of gifts that can be showered on representatives. Goodies put on top of desks at an IMO assembly meeting last year were so heavy that they broke 137 sets of headphones underneath.

Such swampiness matters. The IMO is responsible for limiting emissions from ships, which were excluded from the Paris climate deal.   Some countries are interested in reform. At the imo council meeting this week Australia proposed allowing journalists to report on its meetings as a first step. The Marshall Islands has taken back some of its votes from the private firm that runs its flag registry. But more radical change is needed. Countries should send civil servants, not private actors, as their representatives. The un’s rules on conflicts of interest should be imposed. And voting rights should be allocated with the interests of consumers in mind. These lessons have been widely absorbed within borders. They ought to cross them, too

Excerpts from UN Regulatory Bodies: Agency Problems, Economist, Nov. 24, 2018, at 15

Genetically Modified Crops in Africa: opponents

According to the acting director, Andrew Kigundu,  of Uganda’s National Agricultural Research Organisation (NARO): “The idea of work on genetically engineered bananas is a result of many years of testing of Banana production.” The experiments started in 2005 and work is still ongoing to improve on the content of the fruit and resistance to parasites….The East African country is the first African country to turn toward GM to improve its production of bananas. An option which should make the country remain the first producer in the world .

The adoption of restrictive policies across Africa has been pursued under the pretext of protecting the environment and human health. So far there has been little evidence to support draconian biosafety rules. It is important that the risks of new products be assessed. But the restrictions should proportionate and consistent with needs of different countries.

Africa’s needs are different from those of the EU. There are certain uniquely African problems where GM should be considered as an option.   The Xanthomonas banana wilt bacterial disease causes early ripening and discoloration of bananas, a staple crop for Uganda. This costs the Great Lakes region nearly US $500m annually in losses. There is no treatment for the disease, which continues to undermine food security.  Ugandan scientists at Kawanda Agricultural Research Institute have developed a GM approach but their efforts to further their research in the technology are hampered by opposition to it. Those opposed to the technology advocate the adoption of an EU biosafety approach that would effectively stall the adoption of the technology. In fact, some of opponents using scare tactics against the technology are EU-based non-governmental organizations.

Genetically modified bananas solve Uganda’s productivity problems, AllAfricanews, May 24, 2016; See also Excerpt FromHow the EU starves Africa into submission,” by Calestous Juma, a professor of the practice of international development at the Harvard Kennedy School of Government:  “EU policy undermines African agricultural innovation …in the field of genetically modified (GM) crops. The EU exercises its right not to cultivate transgenic crops but only to import them as animal feed. However, its export of restrictive policies on GM crops has negatively affected Africa.”

Amazon Turtles are Back! Thanks to Local Vigilantes

The historically over-exploited Giant South American Turtle is making a significant comeback on river beaches in the Brazilian Amazon thanks to local protection efforts, say researchers at the University of East Anglia.  Their results, published in Nature Sustainability, show that Giant Turtle populations are well on their way to full recovery on beaches guarded by local vigilantes. There are now over nine times more turtles hatching on these beaches than there were in 1977, equivalent to an annual increase of over 70,000 hatchlings.  The beach survey showed that, of over 2000 turtle nests monitored on protected beaches, only two per cent were attacked by poachers. In contrast, on unprotected beaches, poachers had harvested eggs from 99 per cent of the 202 nests surveyed.The beach protection programme along the Juruá river is part of the largest community-based conservation programme in the Brazilian Amazon. Beaches are guarded on a shoestring budget by local communities carrying out round-the-clock beach surveillance throughout the five-month turtle breeding season.

Prof Carlos Peres, from UEA’s School of Environmental Sciences and a senior author on the study, said: “This study clearly demonstrates the effectiveness of empowering local management action by stakeholders who have the largest stake and a 24/7 presence at key conservation sites. The beaches protected by local communities represent noisy islands of high biodiversity, surrounded by lifeless unprotected beaches, which are invariably empty and silent.”

Excerpts from Amazon turtle populations recovering well thanks to local action, Nov. 3, 2018

Devil’s Idea for Tokyo’s End: Fukushima

By late March 2011… after tsunami struck the Fukushima Daiichi plant—it was far from obvious that the accident was under control and the worst was over. Chief Cabinet Secretary Yukio Edano feared that radioactive material releases from the Fukushima Daiichi plant and its sister plant (Fukushima Daini) located some 12 km south could threaten the entire population of eastern Japan: “That was the devil’s scenario that was on my mind. Common sense dictated that, if that came to pass, then it was the end of Tokyo.”

Prime Minister Naoto Kan asked Dr. Shunsuke Kondo, then-chairman of the Japanese Atomic Energy Commission, to prepare a report on worst-case scenarios from the accidenta .  Dr. Kondo led a 3-day study involving other Japanese experts and submitted his report (Kondo, 2011) to the prime minister on March 25, 2011. The existence of the report was initially kept secret because of the frightening nature of the scenarios it described. An article in the Japan Times quoted a senior government official as saying, “The content [of the report] was so shocking that we decided to treat it as if it didn’t exist.” …

One of the scenarios involved a self-sustaining zirconium cladding fire in the Unit 4 spent fuel pool. Radioactive material releases from the fire were estimated to cause extensive contamination of a 50- to 70-km region around the Fukushima Daiichi plant with hotspots significant enough to require evacuations up to 110 km from the plant. Voluntary evacuations were envisioned out to 200 km because of elevated dose levels. If release from other spent fuel pools occurred, then contamination could extend as far as Tokyo,…There was particular concern that the zirconium cladding fire could produce enough heat to melt the stored fuel, allowing it to flow to the bottom of the pool, melt through the pool liner and concrete bottom, and flow into the reactor building.

Lessons Learned from the Fukushima Daiichi Accident for Spent Fuel Storage: The U.S. nuclear industry and its regulator should give additional attention to improving the ability of plant operators to measure real-time conditions in spent fuel pools and maintain adequate cooling of stored spent fuel during severe accidents and terrorist attacks. These improvements should include hardened and redundant physical surveillance systems (e.g., cameras), radiation monitors, pool temperature monitors, pool water-level monitors, and means to deliver pool makeup water or sprays even when physical access to the pools is limited by facility damage or high radiation levels….

[At nuclear power plants there must be…adequate separation of plant safety and  security systems so that security systems can continue to function independently if safety systems are damaged. In particular, security systems need to have independent, redundant, and protected power sources…]

Excerpts from Lessons Learned from the Fukushima Accident for Improving
Safety and Security of U.S. Nuclear Plants: Phase 2, US National Academies, 2016

The Internet Was Never Open

Rarely has a manifesto been so wrong. “A Declaration of the Independence of Cyberspace”, written 20 years ago by John Perry Barlow, a digital civil-libertarian, begins thus: “Governments of the Industrial World, you weary giants of flesh and steel, I come from Cyberspace, the new home of Mind. On behalf of the future, I ask you of the past to leave us alone. You are not welcome among us. You have no sovereignty where we gather.”

At the turn of the century, it seemed as though this techno-Utopian vision of the world could indeed be a reality. It didn’t last… Autocratic governments around the world…have invested in online-surveillance gear. Filtering systems restrict access: to porn in Britain, to Facebook and Google in China, to dissent in Russia.

Competing operating systems and networks offer inducements to keep their users within the fold, consolidating their power. Their algorithms personalise the web so that no two people get the same search results or social media feeds, betraying the idea of a digital commons. Five companies account for nearly two-thirds of revenue from advertising, the dominant business model of the web.

The open internet accounts for barely 20% of the entire web. The rest of it is hidden away in unsearchable “walled gardens” such as Facebook, whose algorithms are opaque, or on the “dark web”, a shady parallel world wide web. Data gathered from the activities of internet users are being concentrated in fewer hands. And big hands they are too. BCG, a consultancy, reckons that the internet will account for 5.3% of GDP of the world’s 20 big economies this year, or $4.2 trillion.

How did this come to pass? The simple reply is that the free, open, democratic internet dreamed up by the optimists of Silicon Valley was never more than a brief interlude. The more nuanced answer is that the open internet never really existed.

[T]e internet, it was developed “by the US military to serve US military purposes”… The decentralised, packet-based system of communication that forms the basis of the internet originated in America’s need to withstand a massive attack on its soil. Even the much-ballyhooed Silicon Valley model of venture capital as a way to place bets on risky new businesses has military origins.

In the 1980s the American military began to lose interest in the internet…. The time had come for the hackers and geeks who had been experimenting with early computers and phone lines.  Today they are the giants. Google, Apple, Facebook, Amazon and Microsoft—together with some telecoms operators—help set policy in Europe and America on everything from privacy rights and copyright law to child protection and national security. As these companies grow more powerful, the state is pushing back…

The other big risk is that the tension between states and companies resolves into a symbiotic relationship. A leaked e-mail shows a Google executive communicating with Hillary Clinton’s state department about an online tool that would be “important in encouraging more [Syrians] to defect and giving confidence to the opposition.”+++ If technology firms with global reach quietly promote the foreign-policy interests of one country, that can only increase suspicion and accelerate the fracturing of the web into regional internets….

Mr Malcomson describes the internet as a “global private marketplace built on a government platform, not unlike the global airport system”.

Excerpts from Evolution of the internet: Growing up, Economist, Mar. 26, 2016

+++The email said Google would be “partnering with Al Jazeera” who would take “primary ownership” of the tool, maintaining it and publicizing it in Syria.  It was eventually published by Al Jazeera in English and Arabic.