/opinion

  • It’s Not Just Ukraine and Gaza : War Is on the Rise Everywhere - Bloomberg
    https://www.bloomberg.com/opinion/articles/2023-12-10/it-s-not-just-ukraine-and-gaza-war-is-on-the-rise-everywhere?campaign_id=

    An authoritative new study finds there are 183 regional and local conflicts underway in 2023, the highest number in three decades.

    Although the world is not immediately threatened by a great war, such as those of 1914-18 and 1939-45, tensions are rising, especially between the US and China. I would identify an issue that seems to me, as a historian, especially important and dangerous. One of the primary reasons Europe went to war in 1914 is that none of the big players were as frightened as they should have been, of conflict as a supreme human catastrophe. After a century in which the continent had experienced only limited wars, from which Prussia had been an especially conspicuous profiteer, too many statesmen viewed war as a usable instrument of policy, which proved a catastrophic misjudgment.

    Today, we see Russia’s president, Vladimir Putin, sharing this delusion. His lunges into Georgia in 2008, Crimea in 2014 and now mainland Ukraine argue a reckless embrace of the risks of interstate violence. He is confident, and becoming more so as American and European popular support for Ukraine weakens, that he and his people are tougher than us decadent Westerners.

    The increasingly assertive policies of authoritarian states — notably China, Russia, Iran, Turkey and the Gulf states — “is one of the main causes of the demise of traditional conflict-resolution and peacemaking processes …. These powers often prop up authoritarian regimes and disregard fundamental principles of international humanitarian law.”

    Complicating things, “the divide between Russia and Western powers has become unbridgeable and securing allies has become a strategic imperative.” In other words, the democracies feel increasingly obliged to seek friends wherever they can find them, ignoring — for instance — the ghastly cruelties institutionalized in Saudi Arabia.

    The scale of violence in Mexico, especially, is terrifying. On June 26, 2022, heavily armed gangsters attacked a group of 10 policemen near the town of Colombia on the US border, killing six and wounding two. Two months later, organized crime groups staged orchestrated attacks on security forces in five different Mexican states. In significant areas of that vast country, the rule of law is non-existent.

    The IISS survey was compiled before the murderous events in Israel two months ago and what has followed, but it records rising tensions driven by extremists on both sides there, including the armed settler movement in the West Bank: “These new cycles of violence in Israel and the occupied territories are prompting speculation of a new intifada.”

    Yet former Secretary-General Ban Ki-moon complained in 2014 that some peacekeepers were stationed “where there is no peace to keep.” In Mali, jihadists have killed 300 UN personnel over a decade. Amid acute new geopolitical tensions between the major powers, the UN’s influence has shriveled. In the UN Security Council, China, Russia and the US repeatedly veto each other’s declared purposes, or at least cause each other to abandon any prospect of securing a mandate in a given situation, most conspicuously Ukraine.

    The Ukraine experience makes a good case that Rehman, whose research has been supported by the Pentagon’s immensely influential Office of Net Assessment, is right. The current US mindset seems to confuse planning to win a mere battle or limited campaign with the demands of protracted conflict. The author quotes a French history of the 14th century Hundred Years’ War between Britain and France, which he believes offers a template for 21st century superpower conflict. Temporary truces or even peace treaties between the rival monarchies merely “provided an opportunity for the protagonists to regain their breath” — to rearm for the next round of war.

    #Guerre #Géopolitique

  • Let’s Ditch the ‘Rules-Based International Order’ - Bloomberg
    https://www.bloomberg.com/opinion/articles/2024-02-08/let-s-ditch-the-rules-based-international-order

    That’s not only because the term is an Orwellian linguistic atrocity with all the emotive oomph of a Powerpoint slide. It’s also a shibboleth that, when used by American diplomats in particular, makes US foreign policy look hypocritical, from the Middle East to Africa, Asia and beyond.

  • Concerns Over the $34 Trillion of US Debt Are Misguided - Bloomberg
    https://www.bloomberg.com/opinion/articles/2024-01-12/concerns-over-the-34-trillion-of-us-debt-are-misguided

    More important than reducing the debt or balancing the budget would be efforts by lawmakers to protect the US’s exorbitant privilege. Those in Congress creating high drama over the nation’s borrowing and budgets have caused some to question whether Treasuries are really the world’s safest assets. In stripping the US of its AAA credit ratings, both S&P Global Ratings and Fitch Ratings cited concern about rising political dysfunction following several debt-ceiling standoffs.

    Politics is the real threat, not the level of borrowing. A country that prioritizes the size of the federal debt has bad priorities.

    #dollar #usd #privilège_exorbitant

  • Long Covid Is Real. Now the Evidence Is Piling Up. - Bloomberg
    https://www.bloomberg.com/opinion/articles/2023-09-27/long-covid-is-real-now-the-evidence-is-piling-up

    Finally, the hunt for answers about long Covid is yielding some clues. A new study, led by the Icahn School of Medicine at Mount Sinai and the Yale School of Medicine and published in Nature, defines some critical differences in certain biomarkers of people with long Covid. The next step is even more critical: coming up with a way to cure them.

    A massive number of people in the US are dealing with lingering symptoms. Two new reports this week from the Centers for Disease Control and Prevention found that in 2022, some 18 million adults said they had ever had long Covid, with about 8.8 million currently suffering from the condition. In that time, roughly 1 million children had been affected — with about 360,000 children reporting an ongoing case.

  • Peak Oil Demand Is Nowhere in Sight - Bloomberg
    https://www.bloomberg.com/opinion/articles/2022-12-14/peak-oil-demand-is-nowhere-in-sight


    Drivers waiting in line for fuel at an OMV AG station in Budapest.
    Photographer : Akos Stiller/Bloomberg

    The International Energy Agency says consumption will climb to a record 104 million barrels a day late next year.

    sous #paywall, mais le communiqué de presse de l’EIA accompagnant sa prévision est là :
    https://www.eia.gov/pressroom/radio/transcript/steo_petroleum_consumption_01102023.pdf

    The U.S. Energy Information Administration expects global consumption of gasoline, diesel, and other petroleum products to establish new records in 2024, although that forecast is highly dependent on the pace of global economic growth and how China’s economy reacts to the end of its pandemic lockdowns.
    In its January Short-Term Energy Outlook, EIA estimates that crude oil prices will decrease over the next two years as global crude oil production increases to offset growing consumption. EIA expects crude oil prices to fall below $80 per barrel, on average, in 2024, which would be more than 20% lower than the 2022 average price.
    U.S. drivers are also likely to see lower prices at the pump as regular-grade gasoline prices average about $3.30 per gallon in 2023 and $3.00 per gallon in 2024.

    • et, contrairement à ce que laisse entendre l’illustration du bandeau (ci-dessus), si c’est bien l’automobile qui tire la demande, ce n’est pas forcément en brûlant les dérivés du pétrole.

      Global Petrochemicals Market Outlook
      Petrochemicals Market Size, Share, Price, Demand, Forecast 2023-2028
      https://www.expertmarketresearch.com/reports/petrochemicals-market

      Rising Demand for Petrochemicals in the Construction Industry to Augment the Growth of the Global Petrochemicals Industry
      The global petrochemicals industry is being driven by the increased product demand in various end use sectors, especially construction and automotive. According to the UN statistics, the world population is expected to increase from 7.7 billion to 9.7 billion by 2050. This is expected to result in rapid urbanisation, owing to which the governments are increasingly investing in the development of public infrastructure to meet the housing, commercial, and industrial construction demands of the increasing population. In addition, the increased demand for plastic production worldwide is driving the demand for petrochemicals in the plastic industry. Moreover, there has been an increased utilisation of petrochemicals in the automotive industry, such as high-density polyethylene (HDP), for making fuel tanks to prevent fires and polymers, which are further used to create body parts, dashboards, speedometer dials, and steering wheels, among others. Furthermore, the manufacturing of everyday appliances such as CD players, telephones, radios, computers, and televisions on a large scale requires different chemicals. These factors are predicted to drive the demand for petrochemicals, thus, aiding the industry growth in the forecast period.

      bon, la référence aux lecteurs de CD introduit un petit doute sur la fraîcheur du rapport, mais, si, si ! il s’agit bien d’un rapport (la version complète est facturée 2800 $) sur l’état du marché de l’industrie pétrochimique…

      Global Petrochemicals Market : By Product : Ethylene, Propylene, Butadiene, Benzene, Xylene, Toluene, Methanol ; Regional Analysis ; Historical Market and Forecast (2018-2028) ; Market Dynamics : SWOT Analysis, Porter’s Five Forces Analysis ; Value Chain Analysis ; Competitive Landscape ; Industry Events and Developments

  • Climate Change Is Bringing an Insect Apocalypse to Your Neighborhood - Bloomberg
    https://www.bloomberg.com/opinion/articles/2022-10-26/climate-change-is-bringing-an-insect-apocalypse-to-your-neighborhood

    Not every insect species will suffer losses due to a changing climate, and many that won’t are precisely the kinds of bugs that humans would rather do without . Many pests, especially the varieties that feast on crops, are beneficiaries of climate change. In 2013, scientists observed that the home ranges of many pests have been shifting toward historically cooler regions since at least 1960. That shift continues. Scientists estimated this year that a warmer climate was contributing to a 70% expansion in the US habitat for the brown marmorated stink bug, a common and destructive agricultural pest.

    Greater amounts of precipitation generated by warming oceans is also affecting harmful bug populations. For example, over the last 15 years the western Indian Ocean has experienced historically powerful cyclones. In 2019 and 2020, the rain from those events created ideal conditions for locusts to breed, hatch, develop and, ultimately, damage hundreds of thousands of acres of sorghum, corn and wheat in Ethiopia, alone.

    There are also more subtle means by which climate change can promote pests and the destruction of economically significant plants. One study found that increases in temperature were accompanied by an increase in the numbers of Maize Stem Borers, a pest common in parts of Africa, and a decrease in the parasites that feed on them. That disconnect, in turn, led to greater devastation of corn crops. Drought, such as what Texas has faced, can weaken a plant’s natural defenses, thereby attracting pests, while higher CO2 levels can decrease the nutritional value of plants. “If insects face a plant that won’t give them all the nutrients they need, they’ll consume more,” explained Esther Ndumi Ngumbi, an assistant professor of entomology at the University of Illinois. “That’s another unfortunate side-effect of drought,” said Ngumbi, who studies the relationship between plants and insects and spoke to me by phone.

    Her research is also focused on the impacts of pests on farmers, and she’s been troubled by what she’s observed, especially among small farmers in emerging markets. “A Kenyan farmer works one acre of land. If insects come, if drought comes, that takes away their crop, which means they can’t provide for their family.” In more developed regions, the farms are larger, but the impacts are still significant, especially as consumers face higher inflation.

    #insectes #climat

  • China’s -#Surveillance State Will Be the West’s Future, Too - Bloomberg
    https://www.bloomberg.com/opinion/articles/2022-09-12/china-s-surveillance-state-will-be-the-west-s-future-too

    What does all this mean for those of us lucky enough to live in the West? Is it a vision of what we are escaping because of our liberal society? Or is it a warning of the future that awaits us in just a few years’ time? I’m afraid I incline to the more pessimistic view.

  • The GameStop Game Never Stops , Matt Levine, bloomberg.com
    https://www.bloomberg.com/opinion/articles/2021-01-25/the-game-never-stops

    “boredom markets hypothesis,” the notion that stocks these days are driven not by rational calculations about their expected future cash flows but by the fact that people are bored at home due to the pandemic and have nothing better to do but trade stocks with their buddies on Reddit. Why not trade GameStop, literally a stock about games?

  • FANG and Faust : Reimagining Capitalism For a Stake in Our Data Profits
    https://www.bloomberg.com/opinion/articles/2020-12-27/fang-and-faust-reimagining-capitalism-for-a-stake-in-our-data-profits

    There’s a Faustian bargain to make from Covid-19 that could increase our ownership of the 21st century. From interest rates to fashion, pandemics in the past — like the Black Death in the 14th century — have left deep imprints on economic life. This time may be no different. In the aftermath of the coronavirus, governments can reimagine capitalism by giving all of us a stake in the most valuable byproduct of our day-to-day living : data. But make no mistake. It will still be a Faustian (...)

    #FANG #Alibaba #Apple #Baidu #Google #MasterCard #Samsung #Tencent #Visa #Xiaomi #Amazon #Netflix #Paypal #Facebook #payement #consommation #consentement #domination #bénéfices #BHATX #BigData #COVID-19 #GAFAM #santé (...)

    ##santé ##[fr]Règlement_Général_sur_la_Protection_des_Données__RGPD_[en]General_Data_Protection_Regulation__GDPR_[nl]General_Data_Protection_Regulation__GDPR_ ##Jio

  • Personality Tests Are Failing American Workers - Bloomberg
    https://www.bloomberg.com/opinion/articles/2018-01-18/personality-tests-are-failing-american-workers

    All too often, they filter people out for the wrong reasons. If you applied for a job recently, there’s a good chance that you were subjected to a personality test. In some areas, the tests have become ubiquitous as U.S. employers seek ways to make the hiring process more efficient. That’s unfortunate, because the tests might be filtering people out according to traits that bear little or no relation to their potential as employees. New types of vetting have proliferated as the job (...)

    #travail #santé #recrutement #discrimination #algorithme

    ##santé

  • New Shipping Fuel Rules Are Good for Health, Bad for Climate - Bloomberg
    https://www.bloomberg.com/opinion/articles/2019-12-22/new-shipping-fuel-rules-are-good-for-health-bad-for-climate


    Ships will have to burn cleaner fuels from January, or clean up exhaust emissions
    Photographer: Bloomberg/Bloomberg

    Cleaner marine fuels with less sulfur will cut premature deaths and morbidity, but reduce the ability of clouds to reflect heat.

    The shipping industry is getting serious about cutting sulfur dioxide emissions. People who live along busy shipping lanes will see health benefits from reduced particulate emissions and a reduction in acid rain when new regulations come into force on Jan. 1. But the sulfur particles help offset some of the warming caused by powering the ships, so the rules may also increase the likelihood that rising sea levels caused by global warming leave those same populations without a home.

    The new regulations from the International Maritime Organization, a United Nations agency responsible for ensuring safe and efficient shipping on clean oceans, allow for two ways of tackling the problem. Either ships must burn fuel with a sulfur content of no more than 0.5%, down from the 3.5% that is currently permitted outside of designated special emission-control areas. Or they must install scrubbers to remove sulfur from their exhaust.

    The change targets the public-health impact of shipping, which is estimated to contribute 13% of total sulfur oxide emissions annually. It will slash the amount of sulfur dioxide from ships by 75%. Doing so will dramatically reduce premature deaths resulting from sulfate emissions from ships, according to a paper published in Nature Communications in 2018 by a team of researchers from U.S. institutions and the Finnish Meteorological Institute.

    Most of the health benefits will be felt by communities in coastal regions of densely populated countries with busy ports or those on major sea-trade routes, especially in India and China. People living near coastlines in the U.S. or Europe won’t see a difference since ships operating in those areas already face far stricter limits that restrict them to burning fuel with a maximum sulfur level of 0.1%.

    But these health benefits may come at a cost of actually worsening shipping’s climate impact. That’s because the sulfates from ships’ exhaust emissions contribute a cooling effect that will be lost with their removal.

    Sulfur aerosols from ship exhaust reflect energy back into space. But they also help make clouds brighter, so they reflect more sunlight away from the Earth as well. Mikhail Sofiev, one of the authors of the Nature Communications paper, explained it like this:
    Clouds with many small droplets are “whiter” — more reflective — than the clouds with few large droplets. Anthropogenic particles are small and numerous. They attract water and prompt formation of many small cloud droplets – and we get white-top cloud. Fewer sulfate particles reaching the cloud tops will reduce their albedo [ability to reflect] because the cloud droplets will become less numerous, bigger and therefore less reflective.

    Most of the cooling effect from ship exhaust comes from this secondary impact on clouds, accounting for about 92% of the total. The new regulations will reduce that cooling impact from the world’s shipping fleet by 81%, according to the study. The net effect of the IMO 2020 rule on the climate impact is to increase the warming effect of all human activities by 3.8%.

    Removing the sulfur from ship emissions exposes the climate effects of shipping. As James Corbett, another of the report’s authors, points out, “sulfate aerosols mask climate forcing, they don’t change it.”

    The sulfur puzzle is just one piece of IMO’s efforts to clean up an industry that’s crucial to keeping global trade flowing, with more than 80% of global trade carried by sea. The Third IMO GHG Study, published in 2014, estimated that in 2012 international shipping accounted for about 2.2% of all anthropogenic carbon dioxide emissions, and that such emissions could grow by between 50% and 250% by 2050.

    In 2018, the London-based group adopted a strategy to reduce greenhouse gas pollution. The goal is to cut the carbon intensity of international shipping “by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008,” according to the document. It also aims to bring about a peak in total greenhouse gas emissions “as soon as possible” and reduce them by at least 50% by 2050 compared with 2008 levels. The overall emissions target is lower than the carbon intensity goal because the volume of shipping is forecast to increase over the next 30 years.

    One proposal to help achieve all of this is to lower fuel consumption by introducing speed limits. Others include technical approaches such as mandatory power limits.

    Where sulfur dioxide emissions are concerned, some of the negative climate impact may be offset by a parallel reduction in organic carbon and black carbon particles from ship exhaust, which have strongly warming properties. Low-sulfur fuels contain fewer black carbon particles and scrubbers remove them alongside the sulfur. They also have another important component: They are extremely expensive.

    The higher cost of IMO 2020-compliant ship fuel and the fact there is no single worldwide specification for compliant fuel may in and of itself increase the incentive for ship operators and charterers to cut consumption, Corbett argues, thereby reducing CO2 emissions.

    Until an industry-wide greenhouse gas strategy is adopted and implemented that may be the best hope we have.

  • Iran, Ukraine, North Korea Show Ship Seizures Are the New Normal - Bloomberg
    https://www.bloomberg.com/opinion/articles/2019-07-26/iran-ukraine-north-korea-show-ship-seizures-are-the-new-normal


    Iranian Revolutionary Guards patrolling around the British-flagged tanker Stena Impero.
    Photographer: HASAN SHIRVANI/AFP/Getty Images.

    Tit-for-tat is the new normal. Look at the recent spate of ship seizures.

    The seizure of a number of ships in recent months tells an uncomfortable story. In today’s multi-polar world, countries can grab other nations’ vessels and get away with it.

    It’s not just Iran’s detention of the U.K.-flagged Stena Impero in retaliation for the seizure of one its own tankers by Britain. In recent months, other incidents have occurred that had nothing to do with smuggling or fishing disputes, the standard reasons for vessels to be stopped and held by governments. These detentions are geopolitical in nature.

    In November, Russia grabbed three small Ukrainian naval vessels that tried to break through its de facto blockade of the Kerch Strait, a barrier intended to defend an expensive bridge Moscow has built to annexed Crimea. It continues to hold the Berdyansk, Nikopol and Yeni Kapu and their crews – despite an order from the International Tribunal for the Law of the Sea to release them. Moscow disputes the tribunal’s jurisdiction and maintains that the vessels crossed the border illegally.

    On Thursday, Ukraine retaliated by seizing the Nika Spirit, a Russian oil products tanker. According to Ukrainian intelligence, the same vessel was used to block the three ships’ passage under the Crimea bridge.

    Then there’s the seizure of the North Korean bulk carrier Wise Honest by the U.S. in May, the first ever over alleged violations of international sanctions on the dictatorship.

    Kim Jong Un’s regime hasn’t retaliated because it wants to get the Wise Honest back rather than escalate the row. The cargo ship is North Korea’s second biggest, and losing it is a major blow to the country’s shaky economy.

    Meanwhile, there has been talk in the U.S. about trading the Wise Honest for USS Pueblo, the spy ship North Korea captured in 1968. Its crew was returned to the U.S. after 11 months in captivity; some of it are now pushing for the swap. And last week, a U.S. federal court approved the Wise Honest’s sale to pay compensation to the family of American student Otto Warmbier, who died after being imprisoned in North Korea.

    These ship seizures all have something in common: Military or diplomatic advantages that mean one side feels it can act with impunity.

    Obviously, Iran could do nothing to prevent the U.K. from grabbing the Grace 1 near Gibraltar. But Britain, too, simply didn’t have the naval power in the Persian Gulf to stop Iran from trying to take one its ships. Its depleted navy has a single frigate in the region, which cannot be everywhere at the same time. The U.S. theoretically, has the resources to stop Iran from hunting British ships, but has chosen not to interfere.

    Ukraine lacks the naval power to stop Russia from claiming the Kerch Strait as its own, just as it lacks the military clout to take back Crimea. While Western countries have loudly demanded that Russia free the Ukrainian ships and sailors, there’s nothing they can do to force Moscow to comply without creating an unnecessary escalation and perhaps harming Ukraine.

    But then, Russia, for its part, can’t start an all-out war with Ukraine over a tanker built in 1989. The costs would clearly outweigh the benefits; besides, just to be on the safe side, Ukraine has let the crew go after treating it with the utmost politeness. Russia only threatened “consequences” if its sailors are held hostage.

    In the U.S.–North Korea case, if the Wise Honest is sold for the benefit of Otto Warmbier’s family, Kim’s regime conceivably could strike back. If that were to happen, the U.S.’s options would be limited since North Korea is a nuclear power now.

    International rules, such as multilateral sanctions or the Law of the Sea, are nothing without reliable enforcement. But these seizures reveal unsteady balances that make enforcement difficult at best. Rogue actors, such as Iran, North Korea and the Putin regime in Russia, or merely opportunistic ones, as in the cases of Ukraine and, yes, Trump’s U.S., can grab others’ property and people, too, in order to set up trades and bolster their weak diplomatic positions.

    Exchanges of ships and hostages are too distasteful and too fraught with consequences to contemplate, as my Bloomberg Opinion colleague Bobby Ghosh recently wrote in reference to the Iran-U.K. situation. I would argue, however, that they may be necessary where captured crews are involved; Ukraine, for example would be entirely justified in finding Russian prisoners to trade for its sailors. President Volodymyr Zelenskiy’s reluctance to accept anything but their unconditional release can only prolong their suffering.

    In the Iran-U.K. case, the sailors aren’t nationals of the two countries involved, and they shouldn’t be subject to any horse-trading. Both sides should just let them go home. In the U.S.-North Korea dispute, the Wise Honest’s crew wasn’t held.

    When it comes to the hardware, at least two swaps – between the U.S. and North Korea and between Ukraine and Russia – would likely create win-win situations for all sides without creating potential for any further tit-for-tat seizures. But within a broader global context, they would send the wrong signal: That the global order is a free-for-all, in which the only solutions are transactional rather than dictated by universally accepted rules.

    In any case, the shipping industry should take note: Without adequate protection, ships can easily turn into geopolitical chips when they sail into waters where their countries’ adversaries can use force with relative impunity.

  • Britain Should Not Reward Iranian Hostage-Taking - Bloomberg
    https://www.bloomberg.com/opinion/articles/2019-07-25/britain-should-not-reward-iranian-hostage-taking


    Circle of deceit.
    Photographer: Contributor#072019/Getty Images Europe

    Trading a legally detained ship for an unjustly seized one is a losing proposition.

    Confronting the first crisis of his premiership, Boris Johnson must decide what to do about the Stena Impero, the British oil tanker being held by the Islamic Republic of Iran. The regime in Tehran has named its price: the release of the Grace 1, an Iranian ship carrying oil to Syria that was seized by the Royal Navy off Gibraltar.

    Johnson must know that such a trade would set a dangerous precedent. The Iranian supertanker was stopped because it was contravening European Union sanctions against the genocidal dictatorship of Bashar al-Assad. The British vessel was, in essence, taken hostage—as the swap offer demonstrates. This is an extension of the regime’s longstanding history of diplomatic blackmail. If it so chooses, Iran can mount a legal challenge to the seizure of the Grace 1. But the trumped-up charges against the Stena Impero—Iran has furnished no evidence of an accident with a trawler—suggests that its fate, and that of its 23-member crew, is at the whim of Iran’s leadership.

  • China’s Racing to the Top in Income Inequality - Bloomberg
    https://www.bloomberg.com/opinion/articles/2018-09-23/china-s-racing-to-the-top-in-income-inequality

    By Anjani Trivedi, September 23, 2018 - During China’s greatest period of economic growth, fed by widespread industrialization that lifted millions out of poverty, inequality has also increased — at the fastest pace and to the highest level in the world. It may get worse.

    China’s Gini coefficient, 1 a widely used measure of income dispersion across a population, has risen more steeply over the last decade than in any other country, according to an International Monetary Fund working paper. Some inequality is to be expected with industrialization, but in China it’s happened at a staggering pace. One of the main drivers, the research found, is growing differences in education levels and skill premiums.

    In education, China is among the most unequal societies. Demand for highly skilled workers soared with rapid technological change. Access to secondary and higher-level education has blossomed since 1980. Last year, around 8 million students graduated from Chinese universities, 10 times more than two decades ago and double the number at U.S. universities. But the gap in tertiary education completion rose even more, comparing rural to urban areas and richer to poorer people. In the relatively deprived southern autonomous region of Guangxi, for example, around 19 percent of the college-age population is enrolled in tertiary education. In Shanghai, the comparable figure is 70 percent.

    The Rich Get Smarter

    The percentage of people enrolled in a tertiary institution out of the whole college-age population varies widely across provinces depending on income levels

    China’s capital-accumulation boom has been backed by state subsidies that encourage technological advances. Many R&D handouts are based, in turn, on employees’ educational qualifications.

    Take the Ministry of Science and Technology’s Innovation Company program. Access to its incentives include stipulations that research and development spending amount to 6 percent of sales for companies with less than 50 million yuan ($7.3 million) revenue; that at least 30 percent of employees have a college degree; and that 10 percent of the staff be involved in R&D. Plenty of big names have taken advantage of such policies, including the likes of Hangzhou Hikvision Digital Technology Co., the surveillance giant that we wrote about here.

    Other measures to bring home so-called sea turtles — qualified Chinese people living overseas — have deepened the divide. Under Beijing’s Thousand Talents program, launched a decade ago, returnees can get a 2 million-yuan research grant and a personal reward of more than 500,000 yuan, along with benefits. That program had attracted more than 7,000 Chinese scientists and engineers as of November 2017. Local governments, including Shenzhen, also have housing policies aimed at luring talent.

    On top of the influx of expertise, it’s harder for people to find good jobs as the population generally becomes better-educated. To be sure, inequality does diminish as workers change industries, for example from agriculture to sectors that add more value. But that hasn’t happened as fast, in part because of pro-farmer policies and the dibao system that guarantees rural incomes.

    Beijing is now trying to reduce the income-tax burden, adding a potentially powerful tool to address inequality. The working paper’s authors say this is especially the case in China, given the “limited role” fiscal policy has played in “moderating income inequality in China to date.”

    Under tax reforms announced last month by the finance ministry, for example, the greatest benefit accrues to about 20 million people who earn more than 100,000 yuan a year — just 3 percent of the total workforce — according to a Bernstein analysis. With a higher percentage of salary earners in Tier 1 and 2 cities, the gains there will be disproportionate.

    Deepening Divide

    The government also plans to introduce a household allowance for children’s and higher education next year. Spending on education, culture and recreation accounts for 11 percent of household consumption in China.

    Urbanization and an aging population no doubt have added to inequality. By 2008, China had slowed the growth of inequality from previous decades. Since then, however, the government has started running out of measures and now faces the challenge of deleveraging its financial system as the economy slows. As a trade war worsens and Beijing pushes its technological edge, the balancing act will get tougher. Alongside the recent income-tax breaks, the government also announced more stringent social-security collection from companies to fund pensions.

    In an ideal world, Beijing would balance the books sufficiently to slash taxes for the poorest people. Yet for funding, it’s having to turn to the very companies that are supposed to drive the “Made in China 2025” program, reducing their effectiveness. The latest change in social-security collection could cut machinery, industrial and telecom companies’ net profits by 11 percent to 15 percent, according to CLSA.

    The IMF paper suggests the most effective policies to reduce inequality are those “with the largest effect coming from social-protection spending and redistribution” of income. But as Beijing’s push-and-pull gets tougher, the policy avenue will narrow. As Thomas Piketty’s work has found, wealth accumulated in the past grows faster than output and wages. In doing so, “The past devours the future.”

  • The Dark Side of Israel’s Cold Peace With Saudi Arabia
    https://www.bloomberg.com/opinion/articles/2019-06-03/israel-s-cold-peace-with-saudi-arabia-has-a-dark-side

    The Saudis’ phone hacking is enabled by a privately owned Israeli company called the NSO Group Ltd. Its cyberweapon suite, Pegasus, has come under deserved scrutiny in the last year because governments have misused the weapon to hack the phones of journalists and human-rights activists. Last year, two groups of victims sued the company in Israel and Cyprus for providing phone surveillance to the Mexican and Emirati governments, which then used it against political targets.

    Pegasus and similar hacking programs are now able to break into a phone without requiring the user to even click a link. In some cases, a bogus WhatsApp call is enough to infect the phone and make it a powerful tracking device. That makes it particularly suited to monitor Arab dissidents like Al-Baghdadi, who rely on the encrypted messaging service to make contact with networks of activists across the Middle East.

  • “Some have suggested that the U.S. is actually two countries in one — a developed nation for the rich and a developing one for the poor. But recent trends like the fall in construction productivity and the rise in health costs suggest that inequality isn’t the whole story here. The U.S. is simply becoming less efficient along a broad spectrum of measures. How long can this loss of efficiency go on without hurting the country’s overall wealth? Nobody knows, but if the U.S. does eventually backslide in terms of gross domestic product, it wouldn’t be the first rich country to have done so in recent years.”
    https://www.bloomberg.com/opinion/articles/2019-02-21/u-s-is-a-rich-country-with-symptoms-of-a-developing-nation

  • U.S. Is a Rich Country With Symptoms of a Developing Nation - Bloomberg
    https://www.bloomberg.com/opinion/articles/2019-02-21/u-s-is-a-rich-country-with-symptoms-of-a-developing-nation

    Some have suggested that the U.S. is actually two countries in one — a developed nation for the rich and a developing one for the poor. But recent trends like the fall in construction productivity and the rise in health costs suggest that inequality isn’t the whole story here. The U.S. is simply becoming less efficient along a broad spectrum of measures.

    #états-unis

  • China Spying: The Internet’s Underwater Cables Are Next - Bloomberg
    https://www.bloomberg.com/opinion/articles/2019-04-09/china-spying-the-internet-s-underwater-cables-are-next


    Underwater eyes on China.
    Photographer: Mass Communication Specialist 3rd Class Adam K. Thomas/U.S. Navy via Getty Images

    As the West considers the threat posed by China’s naval ambitions, there is a natural tendency to place overarching attention on the South China Sea. This is understandable: Consolidating it would provide Beijing with a huge windfall of oil and natural gas, and a potential chokehold over up to 40 percent of the world’s shipping.

    But this is only the most obvious manifestation of Chinese maritime strategy. Another key element, one that’s far harder to discern, is Beijing’s increasing influence in constructing and repairing the undersea cables that move virtually all the information on the internet. To understand the totality of China’s “Great Game” at sea, you have to look down to the ocean floor.
    […]
    But now the Chinese conglomerate #Huawei Technologies, the leading firm working to deliver 5G telephony networks globally, has gone to sea. Under its Huawei Marine Networks component, it is constructing or improving nearly 100 submarine cables around the world. Last year it completed a cable stretching nearly 4,000 miles from Brazil to Cameroon. (The cable is partly owned by China Unicom, a state-controlled telecom operator.) Rivals claim that Chinese firms are able to lowball the bidding because they receive subsidies from Beijing.
    […]
    A similar dynamic [as in 5G equipment] is playing out underwater. How can the U.S. address the security of undersea cables? There is no way to stop Huawei from building them, or to keep private owners from contracting with Chinese firms on modernizing them, based purely on suspicions. Rather, the U.S. must use its cyber- and intelligence-gathering capability to gather hard evidence of back doors and other security risks. This will be challenging — the Chinese firms are technologically sophisticated and entwined with a virtual police state.

    And back doors aren’t the only problem: Press reports indicate that U.S. and Chinese (and Russian) submarines may have the ability to “tap” the cables externally. (The U.S. government keeps such information tightly under wraps.) And the thousand or so ground-based landing stations will be spying targets as well.

    #cables_sous-marins #internet #espionnage