ARCS Of Progress – The Arctic World In 2050

Editorial note: This article was first published at Arctic Progress in February 2011. In the next few weeks I will be reposting the best material from there.

The Arctic to become a pole of global economic growth? Image credit – Scenic Reflections.

Behold! Far north along the shores of the Arctic a quiver of upspringing settlements fringes the coast. Boats swarm around canning factories, smoke flutters above smelters, herds of reindeer dot the prairies… And here or there, on every street-corner, glimmer out the lights of theaters where moving-pictures entertain white people through the sunless weeks of the midwinter dancing-time, the singing-time, the laughing-time of Eskimo Land.

- Northward ho!: An account of the far North and its people.

In 2003, Goldman Sachs economist Jim O’Neill wrote the now famous paper Dreaming with BRIC’s, predicting that Brazil, Russia, India and China would overtake the developed G8 nations within a few decades and make astounding returns for faithful investors. The BRIC’s concept entered the conventional wisdom, spawning a host of related acronyms (BASICBRICSA, etc) – and if anything, realizing its promise well ahead of schedule. Last year, China’s real GDP possibly overtook America’s, and Russia’s approached Germany’s.

Yet for all their successes, the BRIC’s may not fulfill their expected roles as the stars of the global economy in the 21st century. The level of education is horrid in Brazil and atrocious in India; without the requisite human capital, these two countries will find it difficult to rapidly “converge” to developed world standards. China is much better off in this respect, but its high growth trajectory may in turn be disturbed by energy shortages and environmental degradation. China produces half the world’s coal, which is patently unsustainable given its limited reserves. But since coal accounts for 75% of China’s primary energy consumption and fuels the factories that keep its workforce employed, there is little it can do to mitigate this dependence. Meanwhile, China’s overpopulation, pollution and climate change predicament is so well known as to not require elaboration. Many other countries flirting around the edges of BRIC status – Indonesia, South Africa, Vietnam, etc. – face serious challenges in the form of low human capital, uncertain energy and food supplies and a rising incidence of AGW-induced droughts, floods and heatwaves.

There is one global region that may hold the key to resolving these intertwined problems – and even to become a major pole of global growth in its own right. For the most part, it is now an empty wilderness, but climate change is opening it up as potential living space. Its exploitation has the potential to halve the length of global freight transport routes while increasing their security, uncover sizable to gigantic new sources of hydrocarbons and minerals, and stabilize global food prices through the expansion of arable land. Its experience of management and conflict resolution may inspire a global model of cooperation – or it may degenerate into an economic, legal, or even military battlefield over shipping routes and sub-sea resources.

This global region is the Arctic Rim, and its adjoining ARCS: Alaska, Russia, Canada, and Scandinavia. The ARCS of Progress in the 21st century.

[Read more...]

Future Superpowers – The World To 2100

future-superpowersMost projections of future trends in national power fail to appreciate the importance of three crucial factors: (1) the declining EROEI of energy resources (including, but not limited to, “peak oil”); (2) the importance of human capital to economic growth, especially in developing countries’ attempts to “catch up” to the advanced world; and (3) the impacts of climate change, which are projected to be more and more catastrophic with every passing year. Disregarding these trends produces predictions such as George Friedman’s (STRATFOR) argument that Mexico - a low human capital country experiencing plummeting oil production and growing water stress - will become a superpower by 2100.

Using my current estimates of Comprehensive National Power as a base (an index of power that attempts to express a nation’s economic, military, and cultural power in a single number), I will specially stress the above factors in my analysis of future global power trends. Some results will look plausible and familiar (e.g. China overtaking the US as a superpower by the 2020′s); others will appear utterly bizarre (e.g. Canada becoming a major Great Power in by the end of the century, while India and Brazil plummet back into obscurity). But they are nonetheless all plausible and even likely outcomes, derived from bringing together worlds that all too often are considered independently of each other: the economy; human capital; geopolitics; energetics; and climate change.

There may of course be unexpected discontinuities – popularized as Black Swans by Nassim Taleb – that unravel these projections (the probability of their happening increasing exponentially over time). This will be covered in greater depth below. In the meantime, bear this caveat in mind as you read the rest of the post.

[Read more...]

National Comparisons: Everyday Life

In this third part of my series on national comparisons between Britain, Russia, and the US, I look at the social institutions and infrastructure that play such a big role in our everyday lives. Why is Russia’s life expectancy ten years lower than in the US? What are the most popular university subjects? Where do they live and shop, and how do they get to work? RAFO.

Healthcare

The UK’s National Health Service (NHS) – free at the point of service – is, IMO, the best healthcare system of the three countries. Though waiting lines were a big problem a decade ago, New Labour has thrown a lot of money at them and nowadays lines are much shorter (though the system may well suffer now that the current government wants to “reform” it by cutting staff). Those who can afford it are free to use private healthcare providers or private insurance. The UK spends 8% of GDP on healthcare, and provides objectively better healthcare outcomes than the US system which occupies 16% of its GDP.

That said, the American system is better at some things: its medical technologies are the most advanced in the world and its hospitals are better equipped, and if you can pay for it – or if your insurance covers it – then you chances of surviving many forms of degenerative diseases are substantially higher than if you’re treated by the NHS. Also, emergency service is free; even if you’re an undocumented immigrant and have a heart attack, you will be treated at the EM ward and get that triple bypass. However, if you’re suffering from a wasting disease and aren’t insured, you are screwed. Also very problematic are minor, but painful and very inconvenient problems, such as a chipped tooth. What you can fix in Russia for a $50 fee, or get for free after several weeks of waiting from the NHS, may set you back by a cool $500 in the US.

[Read more...]

Translation: On Canada’s Arctic Militarization

This is a reprint of a post from Arctic Progress.

This is a TRANSLATION of an article by Jules Dufour published September 7th, 2010 at Mondialisation.ca (“Le Canada: un plan national pour la militarisation de l’Arctique et de ses ressources stratégiques“). In my opinion its a tad too alarmist over the scope of Canada’s military ambitions in the Arctic (IMO it’s mostly political grandstanding at this stage), but nonetheless it’s important to remember that Russia is hardly the only country militarizing the Arctic and saber-rattling in the High North. To be made available in PDF.

Canada’s National Plan For The Militarization Of The Arctic And Its Strategic Resources

The year 2010 was marked by a series of decisions by the Canadian government concerning rearmament. Predictably, as the defense plan “Canada First” was formally launched in 2008, involving the country in an unprecedented weapons acquisition and modernization program, such as the purchase of tanks, F-35 fighters, naval construction and F-18 fighter upgrades, pledged at the start of September. It was in July that most of these projects were unveiled, during the summer vacations when such news is far from the concerns of Canadians. Thus, tens of billions are committed to war or preparation for war, without it being possible to hold a parliamentary or public debate on the subject. At most, there have been some protests about the magnitude of the pledged sums and the concerns expressed here and on the regional economic fallout (Castonguay, A., 2010). A familiar scenario.

[Read more...]