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October 1, 2014

Brazil Libertarian Uses Laser Vision to Privatize Trains



BrazilLaserVisionLibertarian2014-09-30.jpg"In campaign ads, Paulo Batista, who is running for a seat in the São Paulo state legislature, is a superhero looking for old commuter trains to blast into privatization with his laser vision." Source of caption: print version of the NYT article quoted and cited below. Source of photo: online version of the NYT article quoted and cited below.



(p. A4) RIO DE JANEIRO -- An auditor flies through the air like Superman, shooting laser beams from his eyes.


. . .


"The neutral, generic method of appealing to voters is a mediocre and failed way of doing politics," said Paulo Batista, 34, a real estate auditor and self-described libertarian who is running for a seat in São Paulo's state legislature.

Mr. Batista's ads, depicting him as a superhero using his laser vision to privatize dilapidated commuter trains, are popular on YouTube.



For the full story, see:

SIMON ROMERO. "Brazil's Politicians Often Play the Clown in Ads." The New York Times (Weds., SEPT. 3, 2014): A4.

(Note: ellipsis added.)

(Note: the online version of the story has the date SEPT. 2, 2014.)






October 14, 2013

Brazilian Entrepreneur Inspired by "The Men Who Built America"



HangLucianoArrivesAtFlagshipHavanStoreInBrusque2013-09-29.jpgThe co-founder of the Havan chain, Luciano Hang, arrives at the chain's flagship store, which is in Brusque, Brazil. Source of photo: online version of the NYT article quoted and cited below.


(p. 6) "My philosophy is pro-capitalism, so of course the best symbols for this come from the United States," said Mr. Hang, who flies around Brazil on a Learjet to visit the nearly 60 stores in his chain, called Havan. "I tell people that we're about freedom: the freedom to stay open when we choose, the freedom to work for us and the freedom to shop," he added. "I know this can be controversial, but I think those who disagree with my approach are few and far between."


. . .


The son of textile factory workers, descended from German and Italian immigrants, Mr. Hang said he admired European culture but preferred the United States. He said he was inspired by a show on the History Channel, "The Men Who Built America," about industrial titans like John D. Rockefeller and Cornelius Vanderbilt.

"I couldn't sleep after I saw that program," he said.

His business model is partly based on Walmart, whose small-town origins he admires, as well as its method of turning economies of scale into low prices.



For the full story, see:

SIMON ROMERO. "Reshaping Brazil's Retail Scene, Inspired by Vegas and Vanderbilt." The New York Times, First Section (Sun., September 15, 2013): 6.

(Note: ellipsis added.)

(Note: the online version of the story has the date September 14, 2013.)






September 20, 2013

Brazil's Cardozo Envies England's Rule of Law



PalinMichael2013-08-31.jpg















"Michael Palin." Source of caption and photo: online version of the WSJ article quoted and cited below.



(p. C11) For his most recent project in Brazil, which will go on to become a PBS series, Mr. Palin interviewed former Brazilian President Fernando Cardoso, who is often credited with the country's economic turnaround. Whereas he says most political leaders are hesitant to say anything controversial, Mr. Cardoso was refreshingly straightforward. "I asked him, 'Brazil has so many good things going for it--the people are friendly and relaxed, the economy is booming. Is there anything you envy about us in England?' " He was surprised by Mr. Cardoso's answer. "He said straight out, 'The rule of law.' He said, 'Our problem here is we have endemic corruption,' " says Mr. Palin. "I just thought it was incredibly honest for a world leader."


For the full story, see:

ALEXANDRA WOLFE. "WEEKEND CONFIDENTIAL; Michael Palin Takes on the World; The former Monty Python performer is turning his global adventures into comic tales." The Wall Street Journal (Sat., August 31, 2013): C11.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date August 30, 2013.)






July 29, 2013

Biofuels Are Bad for the Planet



(p. A13) Biofuels are under siege from critics who say they crowd out food production. Now these fuels made from grass and grain, long touted as green, are being criticized as bad for the planet.

At issue is whether oil alternatives -- such as ethanol distilled from corn and fuels made from inedible stuff like switch grass -- actually make global warming worse through their indirect impact on land use around the world.

For example, if farmers in Brazil burn and clear more rainforest to grow food because farmers in the U.S. are using their land to grow grain for fuel, that could mean a net increase in emissions of carbon dioxide, the main "greenhouse gas" linked to climate change.


. . .


A study published in February [2008] in the journal Science found that U.S. production of corn-based ethanol increases emissions by 93%, compared with using gasoline, when expected world-wide land-use changes are taken into account. Applying the same methodology to biofuels made from switch grass grown on soil diverted from raising corn, the study found that greenhouse-gas emissions would rise by 50%.

Previous studies have found that substituting biofuels for gasoline reduces greenhouse gases. Those studies generally didn't account for the carbon emissions that occur as farmers world-wide respond to higher food prices and convert forest and grassland to cropland.



For the full story, see:

STEPHEN POWER. "If a Tree Falls in the Forest, Are Biofuels To Blame? It's Not Easy Being Green." The Wall Street Journal (Tues., November 11, 2008): A13.

(Note: ellipsis, and bracketed year, added.)



Two relevant articles appeared in Science in the Feb. 29, 2008 issue:

Fargione, Joseph, Jason Hill, David Tilman, Stephen Polasky, and Peter Hawthorne. "Land Clearing and the Biofuel Carbon Debt." Science 319, no. 5867 (Feb. 29, 2008): 1235-38.

Searchinger, Timothy, Ralph Heimlich, R. A. Houghton, Fengxia Dong, Amani Elobeid, Jacinto Fabiosa, Simla Tokgoz, Dermot Hayes, and Tun-Hsiang Yu. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases through Emissions from Land-Use Change." Science 319, no. 5867 (Feb. 29, 2008): 1238-40.






March 16, 2008

Huge Oil Field Discovered Offshore of Brazil


Petrobras54oilPlatform.jpg "The Petrobras 54 platform was in Niteroi, Brazil, last August, before its deployment." Source of the caption and the photo: online version of the NYT article quoted and cited below.


(p. C1) RIO DE JANEIRO -- While some of the world's largest oil producers, including Mexico and Iran, are struggling to remain exporters, Brazil is moving in the opposite direction. A huge underwater oil field discovered late last year has the potential to transform South America's largest country into a sizable exporter and win it a seat at the table of the world's oil cartel.

The new oil, along with refining projects under way by Petrobras, the national oil company, could eventually make Brazil a larger exporter of gasoline as well, adding to supplies in the United States and other countries where it is all but impossible to build new refineries.

The subsalt basin that contains Tupi, the new deepwater field estimated to hold the equivalent of five billion to eight billion barrels of light crude oil, is creating a buzz among the world's largest oil companies. They have struggled lately to find global-scale projects worth investing in, even with oil touching $100 a barrel. Tupi is the world's biggest oil find since a 12-billion-barrel field discovered in 2000 in Kazakhstan.


For the full story, see:

ALEXEI BARRIONUEVO. "Hot Prospect for Oil's Big League." The New York Times (Fri., January 11, 2008): C1 & C4.


TupiDeepwaterOilField.jpg






"The Tupi deepwater field." Source of the caption and the map: online version of the NYT article quoted and cited above.





March 11, 2008

Bolivia Sells More Brazil Nuts Than Brazil


(p. A4) Throughout the 20th century, most of the Brazil nuts consumed around the world came from the jungle surrounding this bustling river market town in the eastern Amazon. But the bitter joke here these days is that the only place you can still find a Brazil nut tree is on the municipal seal.

To the chagrin of Brazilians, exports of the nuts that bear their country's name have fallen precipitously to about 7,000 metric tons in 2003 from nearly 19,000 metric tons in 2000, allowing neighboring Bolivia to become the market leader. Groves of Brazil nut trees are disappearing all over the Brazilian Amazon, and the question of who bears responsibility for that sharp decline and resulting deforestation has become the subject of a heated and growing debate.

Economists, scientists and other scholars tend to point to a single family, based here, that has dominated the industry for three generations and controls hundreds of thousands of acres in this region at the junction of the Araguaia and Tocantins rivers. But members of the influential clan, called Mutran, say they are being unjustly attacked and complain of unfair competition and contraband.

. . .

''At their peak, the Mutrans had a monopoly on everything connected with the Brazil nut industry, from harvesting to transport to exports,'' said Marilia Emmi, a professor at the Nucleus for Amazon Research at the Federal University of Pará. ''Much of their own production occurred on public lands that belonged to the state but were initially leased to them for a pittance as the result of backroom political deals.''

. . .

''Because of their monopoly, the Mutrans paid a price so low that production dropped off the map,'' said Zico Bronzeado, a former Brazil nut harvester who now represents Acre in the lower house of Congress. The low prices drove growers to abandon the business, the critics say, selling their lands to loggers and cattle ranchers in a process that deforested vast stretches of the Amazon and further enriched the Brazilian elite.


For the full story, see:

LARRY ROHTER. "Marabá Journal; Brazil's Problem in a Nutshell: Bolivia Grows Nuts Best." The New York Times (Thurs., August 26, 2004): A4.

(Note: ellipses added.)




November 29, 2007

Let the Evidence Decide if the Mapinguary is Myth or Real

 

   A statue of the mapinguary in Rio Branco, Brazil.  Source of the photo:  online version of the NYT article quoted and cited below. 

 

RIO BRANCO, Brazil — Perhaps it is nothing more than a legend, as skeptics say. Or maybe it is real, as those who claim to have seen it avow. But the mere mention of the mapinguary, the giant slothlike monster of the Amazon, is enough to send shivers down the spines of almost all who dwell in the world’s largest rain forest.

The folklore here is full of tales of encounters with the creature, and nearly every Indian tribe in the Amazon, including those that have had no contact with one another, have a word for the mapinguary (pronounced ma-ping-wahr-EE). The name is usually translated as “the roaring animal” or “the fetid beast.”

. . .  

The giant ground sloth, Megatherium, was once one of the largest mammals to walk the earth, bigger than a modern elephant. Fossil evidence is abundant and widespread, found as far south as Chile and as far north as Florida. But the trail stops cold thousands of years ago.

“When you travel in the Amazon, you are constantly hearing about this animal, especially when you are in contact with indigenous peoples,” said Peter Toledo, an expert on sloths at the Goeldi Institute. “But convincing scientific proof, in the form of even vestiges of bones, blood or excrement, is always lacking.”

Glenn Shepard Jr., an American ethnobiologist and anthropologist based in Manaus, said he was among the skeptics until 1997, when he was doing research about local wildlife among the Machiguenga people of the far western Amazon, in Peru. Tribal members all mentioned a fearsome slothlike creature that inhabited a hilly, forested area in their territory.

Dr. Shepard said “the clincher that really blew me away” came when a member of the tribe remarked matter of factly that he had also seen a mapinguary at the natural history museum in Lima. Dr. Shepard checked; the museum has a diorama with a model of the giant prehistoric ground sloth.

“At the very least, what we have here is an ancient remembrance of a giant sloth, like those found in Chile recently, that humans have come into contact with,” he said. “Let me put it this way: Just because we know that mermaids and sirens are myths doesn’t mean that manatees don’t exist.”

Even so, the mystery of the mapinguary is likely to continue, as is the search.

“There’s still an awful lot of room out there for a large sloth to be roaming around,” Dr. Shepard said.

 

For the full story, see: 

LARRY ROHTER.  "A Huge Amazon Monster Is Only a Myth. Or Is It?"  The New York Times, Section 1  (Sun., July 8, 2007):  3. 

(Note:  ellipsis added.)

 

Some scientists believe that the mapinguary may be based on actual sightings of a real creature related to the Megarium, two of whom are depicted above.  Source of the photo:  online version of the NYT article cited above. 

RioBrancoAmazonMap.jpg   Source of the map:  online version of the NYT article cited above. 

 




November 12, 2007

Strong Global Support for Free Markets

 

FreeMarketsPositiveViewTable.gif   Source of table:  "World Publics Welcome Global Trade -- But Not Immigration." Pew Global Attitudes Project, a project of the PewResearchCenter. Released: 10.04.07 dowloaded from: http://pewglobal.org/reports/display.php?ReportID=258

 

(p. A10) WASHINGTON, Oct. 4 — Buoyed and battered by globalization, people around the world strongly view international trade as a good thing but harbor growing concerns about its side effects: threats to their cultures, damage to the environment and the challenges posed by immigration, a new survey indicates.

In the Pew Global Attitudes Project survey of people in 46 countries and the Palestinian territories, large majorities everywhere said that trade was a good thing. In countries like Argentina, which recently experienced trade-based growth, the attitude toward trade has become more positive.

But support for trade has decreased in recent years in advanced Western countries, including Germany, Britain, France and Italy — and most sharply in the United States. The number of Americans saying trade is good for the country has dropped by 19 percentage points since 2002, to 59 percent.

“G.D.P. growth hasn’t been as dramatic in these places as in Latin America or Eastern Europe,” said Andrew Kohut, president of the Pew Research Center, referring to gross domestic product, the total value of the goods and services produced in a country. “But worldwide, even though some people are rich and some are poor, support for the basic tenet of capitalism is pretty strong.”

 

For the full story, see: 

BRIAN KNOWLTON. "Globalization, According to the World, Is a Good Thing. Sort Of."  The New York Times   (Fri., October 5, 2007):  A10. 

 




April 3, 2007

For Better Jobs, Immigrants Voluntarily Line Up to Learn English


          In Mount Vernon, New York, Maria de Oliveira (center) waited three months for an opening in this English class.  Source of photo:  online version of the NYT article quoted and cited below.

 

In the United States, other things equal, those who speak English earn more than those who do not.  So there is a substantial incentive for immigrants to learn English, even in the absence of the much-debated proposed laws to mandate English in various ways.  Consider the evidence in the article excerpted below: 

 

(p. A1)  MOUNT VERNON, N.Y. — Two weeks after she moved here from her native Brazil, Maria de Oliveira signed up for free English classes at a squat storefront in this working-class suburb, figuring that with an associate’s degree and three years as an administrative assistant, she could find a good job in America so long as she spoke the language.

The woman who runs the classes at Mount Vernon’s Workforce and Career Preparation Center added Ms. Oliveira’s name to her pink binder, at the bottom of a 90-person waiting list that stretched across seven pages. That was in October. Ms. Oliveira, 26, finally got a seat in the class on Jan. 16.

“I keep wondering how much more I’d know if I hadn’t had to wait so long,” she said in Portuguese.

. . .

Luis Sanchez, 47, a Peruvian truck driver for a beer distributor in New Brunswick, has been in this country (p. C14) 10 years — and on the waiting list for English classes in Perth Amboy five months. “You live from day to day, waiting to get the call that you can come to class,” Mr. Sanchez said in Spanish, explaining that he knew a little English but wanted to improve his writing skills so he could apply for better jobs. “I keep on waiting.”

. . .

In Newburgh, N.Y., an Orange County town where one in five of the 29,000 residents are immigrants, Blanca Saravia has amassed an impressive portfolio of odd jobs since arriving from Honduras in 2004: gas station attendant, office janitor, cook’s helper, and, for the last 14 months, packager at a local nail-polish factory. Speaking in her native Spanish, Ms. Saravia said that she has been able to get by with co-workers’ translating, but that “when the boss gives orders, I don’t understand.”

. . .

. . .   Ahmed Al Saidi, 49, who works at a gas station and moved from Yemen in 1994, said in halting English that he wants to learn the language “for better work and to talk to people when I go to the store.”

Ms. Oliveira, the immigrant from Brazil, said she still knows too little English to venture into the marketplace; her husband, who is American born and supports the couple financially, encouraged her to enroll in the classes, held five mornings a week.

“I hope that when I’m speaking a little better, I’ll be able to find a job where I can use the English I learned here and the skills I have from back home,” she said in Portuguese. “When I was on the waiting list, there were times I thought this time would never come.” 

 

For the full story, see: 

FERNANDA SANTOS.  "Demand for English Lessons Outstrips Supply."  The New York Times  (Tues., February 27, 2007):  A1 & C14.

(Note:  ellipses added.)

 

  Source of graphic:  online version of the NYT article quoted and cited above.





April 1, 2007

Better than Socialism, but Not Free Market Enough: More on Why Africa is Poor

 

     Voters in line to vote for President in Senegal on 2/25/07.   Source of photo:  online version of the NYT article quoted and cited below.

 

My old Wabash professor Ben Rogge used to say that rulers liked to build pyramids to proclaim their glory.  He mentioned the Egyptian pyramids, and he mentioned the whole government-created capital city of "Brasilia" in Brazil. 

When rulers in a poor country invest a lot of tax money in infrastructure, such as roads, how much of that is due to their belief in mistaken economic theories, and how much to their wanting to build their own version of the pyramids? 

In either case, at least it can be said that the people probably benefit more from their taxes being used to build roads, than from their taxes being used to build pyramids.  At least the roads can be complementary to transporting goods, and to the mobility of labor. 

But the people would benefit even more if they could keep the tax money to use for their own purposes.

 

(p. A3) DAKAR, Senegal, Feb. 25 — Moudou Gueye was confident that Senegal’s presidential election on Sunday would turn around his fortunes, at least in the short term.

Seven years ago he voted for Abdoulaye Wade, a rabble-rousing professor who, after decades in opposition to Socialist Party rule, sailed into office buoyed by the votes of frustrated young people like Mr. Gueye, who is now 32. They hoped that Mr. Wade, a free-market liberal, would transform this impoverished nation’s economy, which had been stunted by generations of ineffective central planning.

. . .

. . .   Senegal has had relatively robust economic growth that has hovered at around 5 percent over several years (it was lower last year, owing in part to high fuel prices, according to government officials), compared with the 1 percent achieved during much of the Socialist era, and dozens of huge public works projects.

While in some ways the country is better off, economic growth and a building binge have not produced large numbers of jobs in a country struggling to make the transition from an agrarian society based largely on peanut farming to one that harnesses the wealth of a global economy.

. . .

Countering criticism that Mr. Wade is too old to serve another term — his official age is given as 80, but many people suspect he is older — his daughter, Sindiély, who has worked as a special assistant to the president, said he was as sharp and agile as ever.

“It is not a question of age,” Ms. Wade said as she waited to cast her vote in downtown Dakar. “It is a question of dynamism and ideas and what you have planned for your country.”

Along Dakar’s seaside roadway, young men marveled at the cars whizzing below a brand-new overpass, one of Mr. Wade’s long-anticipated public works projects.

Pap Ndiaye, an 18-year-old street vendor who sells baby clothes to people stalled in traffic, said the newly completed road was a sign that the country was moving in the right direction.

“Wade has done a lot for this country,” Mr. Ndiaye said. “Our hope is that he will stay and finish his work.”

Less than a mile away, the road abruptly ends with a bright yellow sign that says “déviation,” or detour. With a hard turn to the right, drivers pour off the broad new highway, and back into the tangled, chaotic streets of one of Dakar’s oldest and poorest neighborhoods.

 

For the full story, see: 

LYDIA POLGREEN.  "Senegalese Vote Hinges on Views of Economic Growth."  The New York Times  (Mon., February 26, 2007):  A3.

(Note:  ellipses added.)

 




July 8, 2006

Government Corn Subsidies Are Inefficient

 

(p. 19) That the United States is using corn, among the more expensive crops to grow and harvest, to help meet the country's fuel needs is a testament to the politics underlying ethanol's 30-year rise to prominence.  Brazilian farmers produce ethanol from sugar at a cost roughly 30 percent less.

But in America's farm belt, politicians have backed the ethanol movement as a way to promote the use of corn, the nation's most plentiful and heavily subsidized crop.  Those generous government subsidies have kept corn prices artificially low -- at about $2 a bushel -- and encouraged flat-out production by farmers, leading to large surpluses symbolized by golden corn piles towering next to grain silos in Iowa and Illinois.

 

For the full story, see:

ALEXEI BARRIONUEVO.  "THE ENERGY CHALLENGE: A Modern Gold Rush; For Good or Ill, Boom in Ethanol Reshapes Economy of Heartland." The New York Times, Section 1 (Sunday, June 25, 2006): 1 & 19.

 




June 8, 2006

Doha Tariff Cuts Would Save Global Economy About $100 Billion; France Objects

 

FoodExportsAndTariffs.gif  Source of graphic:  online version of the WSJ article cited below.

 

(p. A1)  The so-called Doha round of talks, which began in 2001, were designed to boost developing nations; among other things, they want lower barriers to their agricultural exports.  France has vowed to veto any deal that doesn't protect its farmers.  A pivotal missed deadline April 30 has led to predictions the talks could die by summer if countries including France don't change their stance.

The standoff shows how cultural and emotional factors can combine with politics to stifle free-trade goals that most economists believe would provide a net benefit to the world.  The tariff cuts envisioned by Doha would not only help developing countries sell their minerals and food products, but would also lower barriers to the industrialized world's exports of goods and services.  The World Bank calculates that Doha would boost the global economy by around $100 billion.

Overall, France itself likely would be a major economic gainer from a global (p. A10) deal.  Though it's the world's second-largest agriculture exporter after the U.S., farming accounts for just 2.5% of the French economy.  World-class manufacturing and service companies, such as car maker Renault SA and insurer AXA SA, are larger engines of the French economy.  France could gain more income than it would lose in opening its agricultural markets to budding farm superpowers like Brazil.

Even in agriculture, France can be a formidable competitor, notably in products such as wine and cheese.  Its brand is well-known the world over.  And its farms are increasingly home to capital-intensive agribusiness companies, not just small family producers.  Most of the $11.5 billion in European Union subsidies that France receives each year goes to the largest, most commercially viable farms.

WTO chief Pascal Lamy, a Frenchman, says he doesn't understand France's position.  "As an efficient farm producer, the strategy should be to reduce subsidies and prices, because others won't be able to compete with you," he said in a recent interview.

. . .

The French rural tradition, however, is changing.  Between 1993 and 2004, the number of arable farms fell by nearly a third.  Wide swaths of neglected land are now home to unsightly scrub, and the farms people see as they drive down France's immaculate highways are often parts of major business enterprises.  Oxfam says as much as 60% of subsidies went to the richest 15% of French farmers in 2004, the latest figures available.

Oxfam believes the EU's tariffs and farm subsidies, which total over €40 billion annually, are harmful to the world's poorest countries.  High customs duties keep products from poor nations out of the wealthy EU market.  At the same time, EU farmers overproduction is dumped cheaply abroad, driving down global prices and harming farmers in the developing world.

 

For the full story, see:

SCOTT MILLER.  "Food Fight; French Resistance To Trade Accord Has Cultural Roots; WTO Talks Promise Benefits But Farmers Retain Hold On the Nation's Stomach; 'Politicians Are Frightened'."  The Wall Street Journal  (Tues., May 16, 2006):  A1 & A10.

 




May 11, 2006

Taxpayer Pays $120 to Displace a Barrel of Oil With Ethanol

 

John Deutch served as Undersecretary of Energy under President Jimmy Carter.  He also served in the Clinton administration, and is now an MIT chemistry professor.  In the selection below, he explains why corn-based ethanol in the United States, is not an efficient way to produce energy.  In a later section of his commentary, he is more positive about the economics of producing ethanol from switch grass.  (The main difference, he says, is that switch grass can be cultivated using much less petroleum than is used for corn.) 

 

Today, we use corn to produce ethanol in an automobile fuel known as "gasohol" -- 10% ethanol and 90% gasoline.  Generous federal and state subsidies, largely in the form of exemption from gasoline taxes for gasohol, explain the growth of its use; in 2005, over four billion gallons of ethanol were used in gasohol out of a total gasoline pool of 120 billion gallons.  Politicians from corn-states and other proponents of renewable energy support this federal subsidy, but most energy experts believe using corn to make ethanol is not effective in the long run because the net amount of oil saved by gasohol use is minimal.

In the U.S., cultivation of corn is highly energy-intensive and a significant amount of oil and natural gas is used in growing, fertilizing and harvesting it.  Moreover, there is a substantial energy requirement -- much of it supplied by diesel or natural gas -- for the fermentation and distillation process that converts corn to ethanol.  These petroleum inputs must be subtracted when calculating the net amount of oil that is displaced by the use of ethanol in gasohol. While there is some quarreling among experts, it is clear that it takes two-thirds of a gallon of oil to make a gallon equivalent of ethanol from corn.  Thus one gallon of ethanol used in gasohol displaces perhaps one-third of a gallon of oil or less.

A federal tax credit of 10 cents per gallon on gasohol, therefore, costs the taxpayer a hefty $120 per barrel of oil displaced cost.  Surely it is worthwhile to look for cheaper ways to eliminate oil.

The economics are not the same in other countries.  Brazil is a well-known example, where sugarcane grows in the tropical climate and conventional fermentation and distillation readily yields ethanol.  Ethanol is said to provide 40% of automobile fuel in Brazil and compete with gasoline without government subsidy.  Depending on the future world price of sugar and the lessening of trade restrictions on both sugar and sugar-derived ethanol, Brazil could become a net exporter of this biofuel.

 

For the full commentary, see:

JOHN DEUTCH.  "Biomass Movement."  The Wall Street Journal  (Weds., May 10, 2006):  A18.

 




May 5, 2006

Expecting Nationalization, Companies Held Off Investing in Bolivia

 

Bolivian President Morales announcing the nationalization of Bolivia's energy industry.  Source of image: http://www.nytimes.com/2006/05/03/world/americas/03bolivia.html

 

Bolivia's nationalization of its energy industry, announced Monday by President Evo Morales, was a vivid illustration that the populist policies, championed most prominently by Venezuela, were spreading.

. . .

. . .  while Brazil might feel tremors from Bolivia's decision, it is Bolivia that may be risking its potential as a major natural gas exporter.

Companies had been holding off on investments in Bolivia for some time, unnerved by growing talk of precisely the kind of step that Mr. Morales took this week.  Foreign direct investment, much of which goes to energy and mining, fell to $103 million in 2005, from $1 billion in 1999.

What is more, unlike oil, natural gas is not easily exportable, with costly liquefaction facilities, customized tankers or pipelines needed to take the fuel to markets.  Chile, a potential market for Bolivian gas, may choose instead a project to import the fuel from as far away as Africa.

Even Brazil, while now reliant on Bolivian gas, has recently discovered large offshore gas reserves of its own.  Thus the window of opportunity for Bolivia to become a leading gas exporter may be closing, even as it grows more courageous in its dealings with foreigners.

"If Brazil decides to give the cold shoulder to Bolivia," said Carlos Alberto López, an independent consultant for oil companies in La Paz, "Bolivia will be left with its gas underground."

 

For the full story, see: 

SIMON ROMERO and JUAN FORERO.  "Bolivia's Energy Takeover:  Populism Rules in the Andes."  The New York Times  (Weds., May 3, 2006):  A8.

 

 BolivianSoldiersNationalization.jpg Bolivian soldiers after seizing natural gas facilities.  Source of image: http://www.nytimes.com/2006/05/03/world/americas/03bolivia.html

 




April 28, 2006

"Damn it Fidel! What are you going to do about this lousy, piece-of-**** island of yours?"

 

   Source of image of book:  http://www.amazon.com/gp/product/1586483242/qid=1145298612/sr=2-1/ref=pd_bbs_b_2_1/104-9985403-1047968?s=books&v=glance&n=283155

 

Fernando Cardosa is the former Brazilian President who is best known for having temporarily tamed Brazil's runaway inflation.  Although not a principled believer in the free market, Cardoso made some efforts to reduce the damage the Brazilian government was doing to the economy.  The following startling passage is from a useful review of a new memoir by Cardoso:

 

. . . ,  Mr. Cardoso mentions a telling moment at a 1999 summit meeting in Havana.  When the heads of state were alone at a luncheon, one said to Castro:  "Damn it Fidel!  What are you going to do about this lousy, piece-of-**** island of yours?   We're sick of apologizing for you all the time, Fidel.  It's getting embarrassing."   The anecdote shows how disingenuous Latin governments can be when they remain silent about the Cuban dictatorship.

 

For the full review, see:

MARY ANASTASIA O'GRADY.  "A Leader Who Got Real."  The Wall Street Journal  (Thurs., April 6, 2006):  D8.

(Note:  ellipsis added.)

 

Here is the full reference to Cardoso's memoir:

Cardoso, Fernando Henrique.  The Accidental President of Brazil:  A Memoir.  PublicAffairs, 2006.  [with Brian Winter;  291 pages;  $26.95]

 




March 17, 2006

Ethanol Serves Agricultural Lobby

 

The U.S. imposes a 54-cent-a-gallon tariff on Brazilian ethanol, to discourage competition with domestic ethanol, which receives a 54-cent subsidy from taxpayers. The European Union just slapped new duties on Pakistani ethanol.

This should lay bare the fraud that what's going here has anything to do with energy security. It has only to do with the agricultural lobby masquerading its interests behind foolish and misleading rhetoric about energy security.

Take the pressure for flex-fuel mandates, requiring auto companies to build cars capable of running on 85% ethanol. Unmodified cars can already burn fuel comprised 10% of ethanol. If we were honestly keen on diversifying supply and squeezing out imported oil, we'd throw open our dense coastal markets to ethanol producers in Brazil, India, Pakistan, Nigeria and Thailand, displacing perhaps 10 billion gallons of current gasoline use without any vehicle modification or taxpayer subsidy at all.

 

For the full story, see:

HOLMAN W. JENKINS, JR.  "BUSINESS WORLD; What's Wrong with Free Trade in Biofuels?"  The Wall Street Journal  (Weds., February 22, 2006):  A15.

 




December 29, 2005

Nebraska Congressman Opposed Government Supporting Agricultural Prices

 

(p. 85) ". . . in March 1911 Nebraskan Representative George W. Norris sponsored a congressional resolution asking the Attorney General to investigate "a monopoly in the coffee industry."  Wickersham replied that he indeed was conducting an ongoing investigation.

(p. 86) In April, Norris lambasted the coffee trust from the floor of the House, summarizing the valorization loan process.  He concluded that "this gigantic combination [has been able] to control the supply and the sale of coffee throughout the civilized world.  [They] sold only in such quantities as would not break the market."  Frustrated by Brazil's involvement, he observed that when a conspiracy to monopolize a product involved a domestic corporation, it was termed a trust and could be broken.  "But if the combination has behind it the power and influence of a great nation, it is dignified with the new term 'valorization.'  Reduced to common language, it is simply a hold-up of the people by a combination."

 

Source:

Mark Pendergrast. Uncommon Grounds: The History of Coffee and How It Transformed Our World. Basic Books, 2000. (ISBN: 0465054676)

 




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