Daily Archives: March 29, 2021

SASKATOON, Canada In the early 2000s, the Pink Tide developed in various Latin American countries as an anti-imperialist, anti-capitalist movement to fight against neoliberal economic policies. Left-wing governments that drove the Pink Tide include Bolivia, Ecuador, Venezuela, and to a lesser extent Brazil and Argentina. Massive mobilizations against neoliberal policies in the public resulted in a transition to leftist governments. These then promoted growth based on production rather than speculation, increased the states role in wealth redistribution, reversed privatizations and expanded public services. Members of the Pink Tide had aligned goals to provide alternative forms of industrialization, trade and finance through various initiatives like the Community of Latin American and Caribbean States and the Union of South American Nations.

One key characteristic of the Pink Tide was neo-extractivism as a means to achieve economic and social progress. An abundance in raw materials drove growth and was a central source of state revenue for Latin America between 2000 and 2010. The classic use of extractivism included neoliberal policies of deregulation, transnationalization and privatization. The left-leaning governments of the region used extractive activities, especially mining, as an economic tool for increased social spending and poverty reduction, which is why it is referred to as neo-extractivism.

The Pink Tide in Ecuador began when Rafael Correa was elected in 2006 in part due to indigenous-led movements to fight oil and mining extractivism on Amazonian territories. During his presidency, he adopted a national plan based on the Indigenous-Andean philosophy buen vivir which emphasizes reciprocity, solidarity, welfare and an equal relationship between humans and earth.

Correa rewrote the constitution during his first term as president and included components of buen vivir. Using buen vivir as a foundation in the constitution showed a clear shift from the dominant system and challenged the global capitalist order with collectivist notions. Throughout Correas decade-long role as President, there was a 38% reduction in poverty and a 47% reduction in extreme poverty. Of total GDP percentage, social spending more than doubled. Enrollment in education increased substantially and Ecuador had the biggest share of GDP spent on higher education.

When Correa came into power, Ecuador had limitations on monetary policy due to the adoption of the US Dollar as its currency in 2000. Correa combated this by centralizing the bank and requiring that banks bring 45% of their liquid assets back into the country, which eventually increased to 80% by 2015.

Correa stopped using financing from institutions like the World Bank and the International Monetary Fund. Turning to China instead, he accepted more than $11 billion. The loan terms agreed that Ecuador would pay primarily through oil, mining and developing hydroelectric plants. This led to a deepening of dependence on natural resources.

The success of poverty reduction and improvement in social spending is paradoxical. Correa implemented buen vivir into the constitution and promised to implement it in his public policy. Yet his methods for better economic and social outcomes were achieved through neo-extractivism. One of his election campaign promises was that Amazonian lands such as the Yasuni National Rainforest would be protected from extractive activities. Instead, Correa promoted large-scale mining projects and removing protections on the Amazon. Giving rights to nature in the constitution was what made Correa popular throughout Ecuador and led to his election. His decisions caused environmental protests and criticisms throughout the country.

Alongside the rest of Latin America, the commodity boom eventually came to an end in Ecuador as oil prices dropped worldwide. Its GDP declined in 2014 for the first time since 1999. Neo-extractivism indeed brought positive outcomes for Ecuador, but it also produced overvalued exchange rates, weak linkages to the national economy, increased national debt, relatively low employment levels, no attention to rural development and a fractured relationship with environmentalists and indigenous peoples.

In 2017, Lenin Moreno was elected due to diminishing support for Correa from environmentalists and the economic crash following the commodity boom. From the beginning of Morenos presidency, he changed the economic policy by electing officials to reverse Correas state-oriented macroeconomic policies. Furthermore, he stopped the use of foreign debt to finance public investment. Moreno promised not to remove social spending but to open the economy again and establish trade with the United States and countries in the Trans-Pacific Partnership.

In March 2019, Moreno announced that he would use the International Monetary Funds financial support to achieve a stronger and more stable economy. Reforms included policies that would remove rigidities in the labor, product and financial sector. He entended these reforms to make Ecuador a more attractive business destination. Additionally, the goals were to encourage private investment, international trade and create better conditions for women to participate in the labor market.

Whether or not Ecuador elects a neoliberal or leftist leader in the future, economic stability will require some level of economic openness. Nonetheless, neo-extractivism allowed Correa to improve living conditions throughout the country and see significant GDP growth. However, a resource-based economy proved futile when international prices dropped in 2014. To protect Ecuadors most vulnerable and continue to alleviate poverty, different measures will be necessary: diversify the economy, reduce dependency on natural resources and the national debt and invest in education and social programs.

Charlotte Severns Photo: Flickr

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Pink Tide in Ecuador: Reason of Economic Growth or the National Crisis - Borgen Project

Markets and the dollar have priced in a strong US economy to lead the EU and the world out of the pandemic. While some degree of recovery is certain, how powerful is very much in the air.Growth will be affected by US economic policy, taxes, politics, and still, the pandemic. Join FXStreet senior analysts Yohay Elam and Joseph Trevisani for an assessment of the current risks and prospects for the year.

Yohay Elam:So, ten-year yields are below 1.60% after hitting 1.77% and the dollar is stronger.The correlation seems broken, even if yields are still high.Is it end-of-quarter flows?

Joseph Trevisani: I think not, at least in Treasuries.

Yohay Elam:There's a week left until the quarter ends, so I tend to agree.

Joseph Trevisani: Today's claims numbers were the first below 700,000 in the pandemic era, which at least seems promising.

Yohay Elam:That explains the stronger dollar,while weak durable goods orders can be blamed on the weather.

Joseph Trevisani: US yields have had a spectacular run...profit-taking was probably in order.It can, but it matches the Retail Sales reversal...

Yohay Elam:Right.

Joseph Trevisani: It seems that the entire $600 stipend that arrived in January was rushed out the household door, but the underlying family finances that pay for larger and more expensive durable goods, didn't change.

Yohay Elam:That's a good explanation, those checks.

Joseph Trevisani: Nonfarm Payrolls are forecast at 500,000 in March, which would bring the quarter to over one million.

Yohay Elam:I also think that a counter-trend in bonds was overdue.

Joseph Trevisani: Yes, I can't remember what we did with ours.

Yohay Elam:Kept your favorite restaurant in business?

Joseph Trevisani: The Biden administration is talking about another $3 trillion in the stimulus. In this case, more is not necessarily better.Yes, purely short-term consumption. So the January logic fits.

Yohay Elam:US infrastructure needs fresh spendingchecks are a sugar rushinfrastructure is for the longer term.

Joseph Trevisani: True, but infrastructure takes time ad planning as the Obama administration discovered. It cannot, or at least should not provide an immediate economic rush.There is also the tax hike planned by the administration that may dent any recovery.

Yohay Elam:I think it depends on what tax hikes are announced.If they only reverse the Trump tax cuts, reversing that 2018 sugar-rush, the hit to the recovery will likely be minimal.I think the tax talk is pushing yields down.Taxman is breaking the dollar/yield correlation.

Joseph Trevisani: The euro dipped below 1.1800 for the first time since November, but its weakness has a lot to do with the European pandemic situation. Merkel rescinded her proposed hard lockdown, but the plan must have been dispiriting for Geermany.

Yohay Elam:The mood here in Europe is depressedfrustration is huge, anger at politicians on all levels, at pharma firms, the UK, everybody.

Joseph Trevisani: I think you are right on the tax talk. Like the Keystone pipeline, it is hardly the time to eliminate jobs or raise taxes.Here in the US the government and Pharma firms performed very well. In the UK alos, so it is variable.Vaccines are widely available here, and many states have opened eligibility to younger folks, Ha well younger than I am anyway.

Yohay Elam:The US, the UK, and Israel approached the virus and vaccines like a war, and rightfully so all hands on deck and throwing money at the problem. The EU approached it as if were procuring a bridge.At 43, I'll be only eligible to sign up for a vaccine in a few months here in Barcelona.At least I feel young...

Joseph Trevisani: It is interesting that the USD/CAD is resisting the blandishments of the pro-USD crowd.The Canadian dollar is supporting the economic recovery outlook with its resource-based economy.Haha,I will refrain from comment.

Yohay Elam:Oil is critical for CAD.

Joseph Trevisani: Yes,Merkel gave the vaccine negotiating brief to the EU, rather than keeping it in Germany for Germans.My guess is the idea of the EU has taken a huger popular hit from its failure.The UK is in glaring contrast and Brexit has been given a great boost.

Yohay Elam:I think that vaccine management should have been centralized in Europe like in the US. The problem is with the execution.The US and the UK went all-in.

Joseph Trevisani: Yes Oil and CAD are tightly correlated.

Yohay Elam:All-in doesn't exist in the EU's dictionary.Brexit has caused non-tariff barriers and British exporters to the EU are frustrated.But the world is rightfully focused on the virus, and there the UK is a huge success and the EU is a total disaster.

Joseph Trevisani: It is difficult to execute all-inacross 27 countries with 27 national governments

Yohay Elam:So indeed, boosting Brexiteerrs.It is difficult, but not impossible. The EU needs serious reforms.That should have been its moment.But organizations are tested in crises, and the EU failed the test.

Joseph Trevisani: Yes, you are right on the tariffs, but as you say, the emotional psychology is very much in favor of the UK government and Brexit.I have my doubts that the EU can perform the national role.But that has been my opinion for a long time.Organizations need the loyalty of their citizens, habitually or earned.

Yohay Elam:Indeed, trust is critical.Pandemic fatigue and frustration with governments can lead to worse virus outcomes.

Joseph Trevisani: The euro has bounced from 1.1800, and the 10-year is below 1.6%.

Yohay Elam:Well, maybe the dollar/yield correlation is making a comeback.But I think the tax talk broke it.More taxes mean less debt issuance.

Joseph Trevisani: Powell mentioned withdrawing stimulus as the economy improves in an interview this morning, and that has equities on the run.

Yohay Elam:Hmmmm.Powell is ever-powerful.But I think he already said something similardid he sound like withdrawing stimulus is imminent?.We'll hear from Biden about his economic plans on Wednesday. If he goes big huge spending with tax hikes, it's a win for the dollar amid a boost to the economy but not for yields, as the government would have more funds.

Joseph Trevisani: Yes,I dont think the Powell comments are anything new.At this point, it is a truism to say when the economy recovers we will stop our extraordinary measures, but markets like excuses to trade. All-Powerful was one of the titles the Wizard of Oz used to describe himself.

Yohay Elam:The Fed, in general, is the Wizard of Oz.

Joseph Trevisani: I don't think Powell has, in all his many comments, sounded like the withdrawal of stimulus is imminent.Yes, but I hesitate to continue the metaphor.

Yohay Elam:Haha.I think they want to keep markets happy.But they will not mind a 15% correction in the S&P

Joseph Trevisani: Still, recovery is certainly in the market. Yes, it will be interesting to see if the actual recovery, brings on a bout of buying the rumor, sell the fact.

Yohay Elam:I think we're seeing a bit of that now.Perhaps the next upside stock moves are in Europe.Maybe the US tide will lift the leaky European boatonce Europe gets its vaccines in order of course.

Joseph Trevisani: Europe will eventually get its pandemic house in order and the economy will recover.I am ready to return as a tourist to Venice and Italy, and my girls want to go to England, Scotland and Hogwarts. I am certain that will happen.It's the Ever Closer Union, that will need an emergency repair.

Yohay Elam:Indeed, I agree.In some places like Venice and Barcelona, perhaps Hogwarts as well, tourism was often too much. That also needs repair.Hopefully, it is another positive side effect of the pandemic, alongside the Work From Home boom

Joseph Trevisani: Yes, that is true. I am concerned about my hometown, Manhattan also.

Yohay Elam:Manhattan will be back to full business in the summer, perhaps apart from the usual influx of foreign tourism.NYC has recovered from so many shocks, it shall overcome again.Storms, 9/11, crime, and drugs.

Joseph Trevisani: I hope so but homework is an evolution of a different order.

Yohay Elam:Indeed, I think house prices are rising almost everywhere in America, with the exceptions being NYC and San Francisco.

Joseph Trevisani: Probably Chicago also, and that has much to do with the quality of life in those places.

Yohay Elam:Indeed.Looking forward.Will the dollar continue higher? We have payrolls and Biden's speech stand out.NFP on Good Friday should be messy for markets.

Joseph Trevisani: Biden has a scheduled news conference today, supposedly unscripted.

Yohay Elam:He'll probably unintentionally reveal something about the infrastructure spending program.

Joseph Trevisani: If not the nuclear codes.

Yohay Elam:Haha.

Joseph Trevisani: No, I jest.Markets and the dollar have baked in a strong US recovery, and have been pretending it is assured. While some degree of recovery is certain, how powerful is very much in the air. It will be affected by US economic policy, taxes, and still, the pandemic.

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Global markets are positioned for a robust recovery, but where is the proof? - FXStreet

ST. JOHN'S, N.L.

After a 10-week provincial election, municipal leaders in the metro area are ready to get down to business.

They're hoping a majority Liberal government is, too.

To some degree, Im a believer in majorities because there are a lot of tough decisions that have to be made right now and its going to hurt people , Conception Bay South Mayor Terry French told The Telegram Sunday, a day after poll counts revealed Andrew Furey reclaimed his premiership, taking 22 out of 40 seats.

But now is the time that we dont need 40 politicians anymore. We need 40 Newfoundland and Labrador patriots to make the decisions that have to be made, not make decisions based on getting re-elected.

Members of the House of Assembly representing in the C.B.S. area were both re-elected Progressive Conservatives Barry Petten for C.B.S. and Paul Dinn for Topsail-Paradise.

French hopes the strong relationship with them continues.

Everything we do from an infrastructure perspective, having the provincial and federal governments support to back you is crucial, French said.

So, when youre cutting up the pie realizing the pie is not as big as wed all like to see it sometimes you just want to get your fair share.

"C.B.S. is the second biggest municipality in the province and we realize were not going to get as much as the City of St. Johns, but we expect to be second in line when they cut up that pie.

French said the town is looking to do some crucial infrastructure work, including road work, and to construct a new community centre and cultural centre, but its plans have been on hold because the province hasnt announced how much its allotting for the multi-year capital works program.

We want that announced, he said. We realize the province has to tighten its belt, but we want to know how much were getting so we can go out and plan and develop our infrastructure.

St. Johns Mayor Danny Breen said he sent a letter to all candidates in the St. Johns area on behalf of the city prior to the election outlining the issues which need to be addressed.

There wasnt a strong response back to that, Breen said. So, were going to be meeting with the local MHAs at our first opportunity and ensure that those issues continue to be addressed.

Were coming off COVID and its important that we all work together and its important that the municipalities are working in tandem with the province to address the issues that we have.

The big issue for St. Johns, he said, is economic development and recovery.

Among the technical issues is the need for an updated City of St. Johns Act something theyve been waiting on for 20 years.

Quite frankly, its causing us a lot of problems. We need that addressed, said Breen, noting the development of a secondary waste-water treatment plant relies onthe creation of a new Act.

There are just a lot of issues that havent been dealt with and Im hopeful that with a new mandate and a new government that we can move some of these issues forward.

Breen said while some advances have been made with the province, more needs to be done.

To build a strong province, you have to do it one community at a time, he said.

Mount Pearl Mayor Dave Aker also believes a majority government will be better in the long run.

I dont see a minority working as well because you can only deal with your short-term issues, he said. A four-year term gives the province and municipalities, the mandate to work on our problems long-term

And you need that long-term plan in order to implement a vision.

Aker said Mount Pearl has significant infrastructure needs, which requires co-operation with the provincial government, which provides financial support from its expansive tax base.

You need everyone working together, and having a majority government really helps us in establishing priorities and grow our economy, said Aker, who said the province needs to be a strong approach transitioning into the new economy, away from resource-based industry and towards more modern technology and greener industries.

Hes glad to be working with MHAs Paul Lane and Lucy Stoyles, both former Mount Pearl councillors.

They understand us, Aker said. Theyll be able to take our needs to the powers that be.

Meanwhile, Aker said much was learned about mail-out ballots, which Mount Pearl plans to implement for Septembers municipal election.

Paradise mayor Dan Bobbett said for the majority provincial government, "tough decisions have to be made, but we looking forward to some stability now.

He said with Paradise being the fifth-largest municipality in the province, there needs to be changes made to the Municipalities Act to give larger towns the ability to make decisions on various projects.

We get permits ready, engineering is done and everything is ready to go, but weve got to go to government for final approval, said Bobbett, noting it delays the process of getting projects completed. Wed like more autonomy.

We hope the new government will see this as a priority.

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Municipalities in St. John's metro area ready to get down to business with new government - The Telegram

"There are these two young fish swimming along and they happen to meet an older fish swimming the other way, who nods at them and says, Morning, boys. Hows the water? And the two young fish swim on for a bit, and then eventually one of them looks over at the other and goes, What the hell is water?"

David Foster Wallace, writer

The fallout from COVID reveals that Nevada runs on gathering, not gaming a factor that has only increased since our recent marriage to professional sports. Nevadas Creative Economy has suffered a loss of at least $1.3 billion in revenue and 64 percent unemployment so far in the pandemic. (I am convinced the real numbers are higher, but the creative freelance population that fuels the sector is hard to survey without a statewide network to connect them.) Prior to the Great Disruption, the independent Arts and Culture Industry was 5.5 percent of Nevadas Gross Domestic Product a larger share than mining. And that does not include the convention and event industries, which are also a part of our Creative Economy. (Theatrical designers and directors invent trade show and party experiences and they get lighting, video, and sound from stagehands. The same is true for broadcast and film. Creative workers are renewable resources, but we need more awareness about the proverbial water they swim in so we can protect them.)

Commercial entertainment is not a synonym for our Creative Economy; it is one aspect of it.

In Nevada, the water we swim in is, among other things, a creative ecosystem. Las Vegas and Reno are monuments to both the visual art of "placemaking" and the collaborative invention of live experiences. Our rural communities rely on cultural lifelines to connect to others and generate commerce. The Arts are not a cause; they are an industry and tool for society.

The Arts connect society at the intersection between public engagement and personal purpose. Creative workers serve the largest number of voters in schools, at special events, and in the high-end entertainment industry. Creatives integrate into other business sectors as vendors and contractors in occupations like designers, writers, marketers, performers, visual artists, and managers.

We make art when we take an abstract idea from the inside and then, with creative skill, craft something tangible to express it on the outside. Everything human-made, including this sentence and the device delivering it to you, are the products of artistic practice and creative collaboration. Arts professionals are experts in turning a vision into reality through the mastery of innovation, collaboration, and craft. They devise with empathy, leading teams that produce work for commercial businesses, in arts nonprofits, as public servants, and to advance education.

When leveraged instead of neglected, creative talents make enterprises successful, communities vibrant, and the social fabric strong. We need them to create our recovery both economically and socially.

Local production companies, both nonprofit and commercial, are the manufacturing base for Nevadas titans of tourism and entertainment. Strip venues do not create the work; they consume it. The Sands did not make Sinatra; Sinatras work product made The Sands. Shows are crafted by workers who dedicate funding and sweat equity toward the mastery of special skills. These Nevadans own homes, studios, and high-end equipment. They donate their resources to our schools and community programs and offer mentorship opportunities to non-traditional students that often lead to fruitful careers.

A substantial percentage of our creative workers are graduates of elite institutions, and service A-list international clients. Many are union members and serve as adjuncts teaching for our colleges and universities, tutors, and K-12 teachers. Las Vegas reigns as the best production services hub west of the Rocky Mountains for global companies including Production Resource Group (PRG). Broadway builds many of its shows in their shop here, alongside crews prepping tours for rock and roll and corporate events. Thats why scores of freelancers in the elite music touring industry are based in Nevada while their gigs roll around the world.

The first quarter of my 2021 Zoom calendar was busy with economic forums. I had hoped that the pandemic shock would have sparked an epiphany in the minds of Nevadas big fish about the creative sector that helps them prosper, but there was little mention of it except in the City of Hendersons SelectUSA Virtual Tour: Nevada presentation Culture of Opportunity. There is a lot of obsession at these forums with attracting the tech industry in order to economically diversify, and theres a consensus that a comfortable quality of life and advancing education are the answers. So why do they ignore the Creative Economy that empowers those things?

For one thing, local cultural strategists are not regularly included in stakeholder conversations about economic development at the state level, and so decision makers dont know what they do not know. The Wizard of Oz nature of showbiz and hospitality also adds to the blind spot. We are trained to Pay no attention to the man behind the curtain, but they of course exist wherever gatherings happen and its a whole diverse team, not just one guy pulling strings. We must see, study, and strategize with them before we squander their investment in our communities.

The Nevada Arts Council (NAC) is a state agency charged with administering grants from funds awarded by the National Endowment for the Arts (NEA) and other public programs to provide communities democratizing access to arts and culture. The NAC is not an umbrella for our Creative Economy; it is an element of it. Their grants provide stimulus, but that is not their purpose. And the NAC is legally prevented from advocating for their own support, so they are not the voice for creative industries that Nevada really needs in Carson City, as well as at the county and city levels.

Historically, most local creative organizations attempting to grow a presence within their communities are treated as unwanted competition by casino bosses who myopically claim that independent local offerings do not put heads in beds, and should be excluded from promotional policy. For example, the NAC is an office in the NV Department of Tourism but that does not persuade board members at the Las Vegas Convention and Visitors Authority (LVCVA). Southern Nevadas independent Creative Economy has long suffered under the shadow of the Strip, which does not do either party any favors.

The closure of showrooms left the Strip with few enticements to part visitors from their cash, and it will stay that way until October for places like The Smith Center. The same is not true for local creative programs. Since September 2020 (at least), there have been ballet concerts in found spaces, singers at supper clubs, full orchestras with a public audience, opera and play performances indoors and out, gallery openings, poetry readings, religious observances, weddings, and product launches all thanks to our local cultural community. Their output is impressive, but it is not sustainable without building the developmental infrastructure to support them.

Arts professionals lost the bulk of their income in the past 12 months and many did not get unemployment benefits. They have liquidated assets and lost workspaces. They need their tools and shops to earn again, or the strain on our state as a whole will be prolonged. Many are leaving for states like Colorado that have offices which target members of their sector for development, helping them to acquire space, partnerships, and regranting programs.

Creative workers know how to navigate with a compass rather than a map. Nevada needs to intentionally protect them through targeted economic development so their vision and skill can help unite and guide our communities through uncharted waters.

Sarah OConnell is the vice president of the Producers Alliance of Southern Nevada and the principal director of Eat More Art LLC.

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We need to protect Nevada's creative economy - The Nevada Independent

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The outlook for the Australian economy is undoubtedly beating expectations. Despite the ongoing COVID-19 pandemic, the net annual reduction of the Australian GDP stands at 1.1 percent, the best in the OECD. However, much of that apparent economic fortune is due to the soaring price of Australias largest export, iron ore.

Over the last decade, Australias iron ore export volumes have increased 200 percent, largely on the back of increased demand from China. However, despite the continued appetite of the Chinese economy for Australian iron ore, other sectors have not fared so well. Indeed, China has imposed tariffs on a number of Australian commodities, including barley, beef, lamb, wine cotton, lobsters, and coal.

The imposition of tariffs has renewed calls for a diversification of the Australian economy. This is the mantra that has often been expressed by politicians, both state and federal and from across the political aisle. However, as the saying goes, actions speak louder than words. In Western Australia (WA), the state most over-dependent on iron ore for economic prosperity, it is becoming apparent that the local government is implementing a counterproductive strategy.

An Emphasis on Trade

After a landslide Labor victory in the 2021 WA state election, the subsequent cabinet reshuffle witnessed the dismissal of the Asian Engagement portfolio along with the removal of trade commissioners in Indonesia, South Korea, and India, leaving only locally engaged staff to promote the economic diversification that WA so desperately needs.

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The office reshuffle now sees India represented by the Middle Easts Dubai office, creating an India-Gulf commission. South Korea will be represented by the Tokyo office in Japan, and Indonesia will now be represented by an ASEAN-wide commission, based in Singapore. However, the WA government has stated its intention that the commission will relocate to Indonesia to emphasize the commitment that WA has to its northern neighbor.

Despite this, WA Premier Mark McGowan has illustrated that the state government remains committed to the economic diversification of WAs economy. The claim from critics that the states economy cannot be diversified without the Asian Engagement portfolio demonstrates a lack of understanding about the complexity of both WAs economy and the Indo-Pacific region.

Get briefed on the story of the week, and developing stories to watch across the Asia-Pacific.

The premiers premise raises an interesting point. Much is said about the need to diversify WAs resource intensive economy. But what is often overlooked is the expansive nature of the WA resource sector. Much of the discussion is centered on two overarching premises: China and trade. Although both remain important, it does not encompass the bigger picture about the complexity of WAs economy.

An Overemphasis on China

When discussing WAs trade and investment portfolio, as well as Australias trading relationship more generally, China often dominates the discussion promoting this misunderstanding. The allure of Chinas influence is clear. Indeed, Australias top 30 export industries rely on a single dominant customer China. In particular, the Chinese market accounts for a 56 percent share of WAs export market.

Despite Chinas dominance in WAs export market, it would be a mistake to dismiss the significance of WAs diversification efforts based on the Chinese example. When including a whole-of-economy perspective, the dominant players in WA remain the United States and United Kingdom.

The U.S. and U.K. are undoubtedly the largest foreign investors in Australia, accounting for 25.6 percent and 17.8 percent of Australias total, respectively. China on the other hand, accounts for only 2 percent of investment in Australia. This stark contrast concerning the importance of trade vs the importance of investment reflects two different ideological frameworks that govern the U.S.-British and Chinese strategies.

A Juxtaposition of Approaches

The Chinese strategy is dominated by an extraction framework. That is, Chinese economic activity with Australia is geared toward the commodities that Australia offers the Chinese market. Indeed, the large Chinese population coupled with the rapid development of the Chinese economy has engineered the conditions for the large-scale public and private consumption of Australian resources.

Concurrently, the importance of WA resource sectors to the Chinese economy cannot be understated. The Australian economy continues to be the fourth most China leveraged economy in the world. What is meant by this is that the vast bulk of Australias exports to China tend to stay in China, more often ending up in fixed investments that will continue to drive the Chinese economy.

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The Anglo-American strategy, on the other hand, is governed with a more long-term framework in mind. This is largely because the WA resource sector continues to be resilient and has been the engine of the Australian economy for the better part of a century. British and American companies have recognized the opportunities that WA provides, with Chevrons investment in WAs domestic gas portfolio in Wheatstone, Gorgon and the North Shelf facilities and BPs feasibility study into a hydrogen energy production facility in WA.

Reframing the Conversation

The resiliency of the WA resources sector remains evident. Throughout the COVID-19 pandemic, the resource industry has given WA the only operating budget surplus in Australia. Therefore, even in the uncertainty of a global pandemic, WAs resources sector continues to be the driving engine of much of the Australian economy. However, when discussing the importance of the resources sector, there appears to be an overemphasis on demand, mostly from China, and little consideration for the supply side, notably from U.S. and British companies.

Unlike the Chinese, the Americans and the British continue to witness the opportunities that the WA resource sector offers. As such, instead of engaging in a discussion about the end game, i.e. export destinations, perhaps, there should be a shift into the capital intensive nature of the industry and a renewed focus on investment, which the Americans and British appear to do best.

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The Common (and Overlooked) Underpinnings of Australia's Economy - The Diplomat

STOCKHOLM, March 24, 2021 /PRNewswire/ -- In its 2020 Sustainovate Progress Report, Husqvarna Group reports a 32% cut in CO2 emissions compared to 2015. These absolute reductions include emissions from suppliers, in operations and when products are in use. This is an important milestone in the Group's striving to lead the industry in low-carbon, resource-smart solutions.

Henric Andersson, CEO and President of Husqvarna Group commented on the Group's 2020 results: "We feel a sense of urgency for climate action and with a 32% reduction since 2015, we took a big leap forward to achieving our 2025 carbon target."

The Group's Science-based target (SBT) takes into account the CO2 emissions that occur both in its own operations and when products are being used. The Group is committed to reducing CO2 in line with society's ambition to limit a temperature rise of 1.5 C. It also commits to net-zero emissions across the value chain by 2050 at the latest.

Sustainovate to 2025 is the Group's plan of action to lead the industry in the shift to a low-carbon, resource-smart economy. Some of the year's highlights:

Carbon: For the third consecutive year the Group has reduced its absolute CO2 emissions while increasing sales, demonstrating the business case for climate action.

Circular: By 2025 Husqvarna Group will launch 50 circular innovations. The Group launched Sustainovate Open, an accelerator that hosted more than 20 start-ups in a circular innovation challenge. A 300,000 SEK pilot budget was awarded to Ekkono Solutions for its Edge Machine Learning software.

People: By 2025 the Group will empower 5 million customers and colleagues to make sustainable choices. Ten sustainability awareness workshops with the employees where held during the year.The Group also closed the books on Sustainovate 2020, its five-year plan covering five areas necessary for integrating sustainability deeper into the business-carbon, teams, suppliers, safety and community. The Group achieved four of five 2020 targets. Supplier audits was slightly below the stated target due to impacts of the COVID pandemic.

For additional information, contact

sa LarssonGlobal Media and Sustainability ManagerEmail: [emailprotected] +46 8 738 90 80

This information was brought to you by Cision http://news.cision.com

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Husqvarna Group's 2020 Sustainovate report shows how it will lead the industry in the shift to a low-carbon, resource-smart economy - PRNewswire

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By Mikael Lind et al. 03-29-2021 01:16:00

[By Mikael Lind,Richard T. Watson and Wolfgang Lehmacher]

Building the future

Achievement of an efficient, resilient, safe, and sustainable maritime ecosystem is a multi-year, multi-stage project that requires a sequence of interlocking actions. Attainment of the ultimate goals of any major project requires a series of intermediate steps where accomplishment of one step establishes the foundations for the achievement of subsequent steps. A number of different enablers support the application of Maritime Informatics[1] to create higher levels of maritime efficiency, safety, environmental sustainability, and resilience.[2] In this concise article we identify these enablers and map out how they link to each other in cause-effect relationships (see the following diagram). We also show with a dotted line how lessons learned during each of the phases shown in the diagram can inform improvements in the prior phase.

Figure 1: Maritime Informatics enablers and expected effects

A steady flow of benefits requires that the phases are chunked into specific concrete usable outcomes. For example, a digital standard for a discrete element of operations might be prioritised to enable achievement of its benefits in subsequent phases. It is expected that the four phases in the diagram will be continually iterated as new standards, models, and tools becoming available or existing ones are modified to meeting changing customer expectations as well as business, societal, and environmental needs.

Phase 1: Standardising

Standardisation of digital data sharing

Digital data sharing standards are a prerequisite for higher performance. As the economy moves ahead with its digitalisation efforts, every industrys players need to share data to coordinate and synchronise their activities and integrate into the overall ecosystem. Without industry standards this is unwieldy, given the international and self-organising nature of the fragmented shipping industry. No shipping company wants to deal with a different data exchange standard and set of data requirements for each port or terminal. But this is a current reality.

All objects (for example, containers), all interactions (for example, between ships and pilots), and all services (for example, customs clearance) need standard digital data descriptions and processes to grease the path towards interoperability. Digital standards will sit on the top of a global communications layer (for example, based on maritime satellites, 5G) to provide harmonised global communications within the maritime industry and between the industry and other transport providers. Universal standards, such as the metric system, reduce the friction of commerce, and the shipping industry can eliminate its current brake on profits by pursuing standardisation across the industry, starting with aligning all major ports.

Standards enable interoperability across systems and connectivity between systems. APIs and XML are frequently critical foundations for seamless integration. APIs enable authorised parties to extract relevant information from their partners systems, and XML-based standards enable messages to be read and interpreted in a uniform manner within an ecosystem.

Currently, there are intergovernmental and industry driven initiatives engaged in securing standards for the maritime industry.[3] Standardisation enhances interoperability, which is an enabler of integrated multimodal operations as a basis for high performance in a self-organising ecosystem.

Phase 2: Data driven decision-making for collaboration and synchronisation

Collaborative Alignment

Standardised data sharing is a precondition for collaborative alignment as standardisation allows achievement of a common situational awareness among parties who need to coordinate their actions to transact a service.[4] For example, a ship berthing might require collaborative alignment among a ships captain, tug masters, and linesmen. Such operations are often subject to continual re-planning due to disruptions, such as a ships delayed departure from the immediate prior port or an unexpected change of weather.

Common situational awareness, which is critical to the many collaborative alignments in a port visit, requires real-time data sharing among the involved parties within the specific time-window spanning the necessary planning horizon before interaction.

Ports have to continuously deal with abrupt changes, such as those caused by late arrival of a vessel, unanticipated shortages of labour and equipment, like chassis and containers, and highly volatile cargo volumes. Digital twinning[5] is one relatively inexpensive option for preparing to deal with abrupt change. Digital twinning assists in understanding complex business problems and identifying effective interventions and appropriate scenarios for action. Data are necessary to calibrate a digital twin, but there must first be an investment in human and organisational capital to create and maintain a digital twin.

Synchronised and coordinated operations

During a port call, there are many operations that need to be synchronised, such as:

Beyond the port, there are numerous situations where synchronisation and coordination are needed when resources are shared, such as a busy narrow waterway. Synchronisation failures can result in unnecessary waiting times, extended turn-around times, underutilisation of resources, and in the worst case a collision.

We envision the transfer of appointment economy principles to shipping in the area of berthing. We foresee general adoption of the booking of berths in advance of a port visit and a supporting infrastructure for berthing rights trading to cater for variations in arrival times. For example, when a ship recognises it will be a late arrival, there could be a marketplace where it can sell its right to berth at the previously planned arrival time. A marketplace can improve planning and reliability by balancing a firm commitment to a berthing slot, and at the same time provide some flexibility to handle unanticipated disruptions. The ultimate goal is to raise the level of predictability for sea transport clients.

Successful synchronisation requires empowered decision-making to ensure the collaborative alignment of the necessary resources.

Empowered decision-making

Decision-making is the central activity of nearly every organisation, and data-driven organisations deliver higher quality decisions. Access to appropriate real-time digital data streams (DDS) and databases has become critical for both operational and strategic decision-making. However, if shared data are not in a standard or common industry format then decision-making is just as hampered as a conversation which involves parties that speak different languages.

The various forms of data analytics (descriptive, predictive, explanatory, diagnostics, and predictive) and machine learning all have the potential to empower decision-making. Perhaps the greatest opportunity for Maritime Informatics is in the area of resource allocation by applying prescriptive analytics to typical problems, such as cargo unloading, to minimise cost.

Phase 3: Efficiency gains from integrated planning and execution

Multimodal integration

While 90 percent of the goods transported globally spend days, weeks and months at sea or on a waterway, many shipments start and finish their journey by land. Coordination across and within sea transport is often inefficient, and some cargo owners institute time buffers to meet their clients service expectations. The steps taken in phase 2 create the capacity for seamless integration between modes of transport by facilitating situational awareness across a cargos entire journey from producer to consumer.

Multimodal integration requires a focus on the goods being transported rather than a sub-optimised leg by leg focus and transition between modes. Alignment of modes through coordination and synchronisation, as established by the prior phase, will support integration, enable tracking of shipment progress, and dynamic rescheduling as required.

Phase 4: Capital productivity gains

The ultimate goal of all organisations is to raise their capital productivity. We now discuss the four main areas targeted by the shipping industry.

Efficiency

All executives are well aware of the need for efficiency in the use of economic and human capital. They are familiar with the use of information systems for efficient transaction processing and data collection.

Empowered decision-making and standardised digital data sharing are key to harvesting gains from autonomous and remotely supported operations. Automated operations, both at sea and onshore operations, such as for cargo operations and mooring, will require extensive digital innovation for their full realisation

Resilience

An increase in adverse weather is an acknowledged consequence of global climate change. Covid-19 has demonstrated the disruptive power of a pandemic. With increasing population and urbanisation, we should prepare for similar outbreaks in the future, as well as for a rising number of natural disasters. These perturbations have a tremendous impact on productivity, as we have seen with the global drop in economic growth following the Covid-19 outbreak.

A poorly handled disruption can destroy a business, but careful preparation and rehearsal can identify key factors and unknowns for consideration and will support a more resilient response by companies and governments.

Safety

A ship, its cargo, and its crew are major economic and human capital investments. The industry has long been concerned with partial or complete loss of any of these key resources. Increased safety is therefore a particularly important Maritime Informatics goal because it will help to preserve key capital, especially human life. The adoption of interoperable data standards for onboard equipment is essential for reducing accidents by improving the quality of alert signals and thus decision making.[6]

Sustainability

The shift to renewable energy source is often seen as the main pathway to a sustainable society, but it has important partners that are often overlooked energy efficiency and capital productivity.[7] The data analytics component of Maritime Informatics is concerned with these two areas. It is aimed at doing more with less energy and less capital of all forms. For example, machine-learning based predictive maintenance can facilitate the shift from time-based to the less wasteful condition-based maintenance.

A circular economy includes sharing, reuse, remake and recycling, and these principles are another opportunity to raise capital productivity. For example, when ships are scrapped there are opportunities for the reuse of components, provided the ship has been designed for disassembly and all components are digitally identified and described in a database. Additionally, there needs to be a marketplace for these accurately described components to maximise their value. The same possibilities exist for port equipment. Digital standards for component identification and description and shared systems of record enable large-scale circular supply chains.

High on the maritime agenda is the transformation of shipping to fossil-free energy sources for both construction and operations. This conversion requires that fossil-free fuel is widely available at major ports throughout the world. This can be facilitated by a global digital marketplace to enable efficient balancing of supply and demand so ships can plan with certainty when and where to refuel.

Realising the path

All maps and their associated paths may look simple, but most journeys face a reality that is highly complex, which hinders creation of a more productive industry. The Maritime Informatics map presented in this article builds on the fundamental viewpoint that maritime transport does not exist in isolation. Cargo owners and transport coordinators desire seamless integration in the global transport chain. In this effort the core focus areas identified in phases 1-3 are necessary for this transition forming the basis for gaining capital productivity (phase 4).

However, and most importantly, digitalisation is just an enabler. It is probably the most important means of achieving the ultimate goal of increased capital productivity. All actions should be judged in terms of how they contribute to raising capital productivity. The framework presented in this concise article helps you to identify waypoints on the capital productivity quest. It can help organisations and the industry position project initiatives taken at an organisational, national, regional, and international level.

We are grateful for the invaluable input provided by Hanane Becha (UN/CEFACT), Jillian Carson-Jackson (The Nautical Institute), Xiuju Fu (A*Star/IHPC), Jan Hoffmann (UNCTAD), Michalis Michaelides (Cyprus University of Technology), Andr Simha (Mediterranean Shipping Company (MSC)), Sukhjit Singh (University of Trinidad and Tobago), Robert Ward, Secretary-General emeritus of the International Hydrographic Organisation, and Phanthian Zuesongdham (Hamburg Port Authority), in the development of this article.

Mikael Lind is the worlds first Professor of Maritime Informatics and is engaged at Chalmers, Sweden, and is also Senior Strategic Research Advisor at Research Institutes of Sweden (RISE). He serves as an expert for World Economic Forum, Europes Digital Transport Logistic Forum (DTLF), and UN/CEFACT. He is the co-editor of the first book of maritime informatics recently published by Springer.

Richard T. Watson is a Regents Professor and the J. Rex Fuqua Distinguished Chair for Internet Strategy at the University of Georgia. He has written books on Data Management; Electronic Commerce, Internet Strategy, Energy Informatics, and Capital, Systems, and Objects, he is the co-editor of the first book of maritime informatics, and has published nearly 200 journal articles.

Wolfgang Lehmacheris operating partner at Anchor Group. He is chairman of the board of directors of Logen, member of the board of directors of Roambee, strategist Thematiks Supply Chain InnovationNetwork, advisory board member of The Logistics and Supply Chain Management Society, ambassador of The European Freight and Logistics Leaders' Forum, and founding member of the think tanks Logistikweisen and NEXST.

[1] Lind M., Watson R., Hoffmann J., Ward R., Michaelides M. (2020) Maritime Informatics: an emerging discipline for a digitally connected efficient, sustainable and resilient industry, Article No. 59 [UNCTAD Transport and Trade Facilitation Newsletter N87 - Third Quarter 2020]

[2] Lind M., Michaelides M., Ward R., Watson R.T. (2021, Eds.) Maritime Informatics. Heidelberg: Springer

[3] Lind M., Michaelides M., Ward R., Watson R.T. (2021, Eds.) Maritime Informatics: Additional Perspectives and Applications. Forthcoming, Heidelberg: Springer

[4] Lind M., Becha H., Simha A., Bottin F., Larsen S. E. (2020) Smart Decision-Making and Collaborative Alignment, Smart Maritime Network, 2020-08-20

[5] Lind M., Becha H., Watson R. T., Kouwenhoven N., Zuesongdham P., Baldauf U. (2020) Digital twins for the maritime sector, The Maritime Executive, 15/7-2020

[6] Thomas, D., & OMalley, S. (2021) The Necessity of Standards for Maritime Informatics in Ship Operations. In M. Lind, M. P. Michaelides, R. Ward, & R. T. Watson (Eds.), Maritime Informatics (pp. 33-45): Springer.

[7] Lind M., Watson R., Chua C. P., Levy D., Theodossiou S., Primor O., Picco A. (2020) A Primer for a Profitable and Sustainable Maritime Business, Smart Maritime Network, 2020-09-09

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

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Key Steps Towards a High Performing Maritime Industry - The Maritime Executive

For the first time in my life, last summer, I saw long-standing institutions and corporations make bold statements and stand together to denounce structural and systemic racism. Goldman Sachs recently came out with a study that showed what we all know to be true, there continues to be a persistent racial wealth gap in our country.

Additionally, in the Federal Reserve's 2019 Survey of Consumer Finances, White families were reported to have had a median wealth level of eight times that of Black families. Study after study has confirmed this to us, and we know the root cause.

Laws and policies that have lasted for centuries have created the racial wealth gap, from slavery to illegal redlining and beyond. These policies in government and practices in corporate institutions were designed intentionally.

Today, many of these same institutions have vocalized the desire to close this gap. It will take intentionality to do so.

One of the recommendations from the Goldman study for closing the gap was to prioritize Black-owned businesses. And it makes sense. Entrepreneurship is one way Black families can begin to acquire generational wealth. Black entrepreneurship is not a new concept and has been around for centuries. Institutionalized barriers to success for Black entrepreneurs have also been around for centuries.

Now is the time for us to identify and remove every barrier that stands in the way for Black businesses to thrive.

The Metro Detroit Black Business Alliance seeks to do just that. We are committed to diverse programming that connects and secures resources for Black businesses in Wayne, Oakland and Macomb County.

We are building a business resource center where our members can access coworking space, a board room and free internet. We are also building a comprehensive Black business directory. We will do a deep dive into policy advocacy. As a membership-based organization, we will advocate at every level of government for policies that will help our member businesses thrive even in a post-COVID economy.

Our plans are ambitious, but we know that we cannot do this alone. In order to close the wealth gap that will ultimately result in a revitalized and thriving economy, we need others to also prioritize Black businesses.

You can do this by supporting a local Black-owned business. I don't mean purchasing a candle from that one Black entrepreneur you met last year. I mean review your family and/or your organization's budget and identify line items where you can regularly invest in Black businesses.

Financial institutions can review their policies to make resources much more accessible. Corporations can set procurement goals that intentionally engage Black vendors. Individuals and organizations can join the MDBBA. We have a membership level for everyone.

You can become a part of our village. Our village consists of partners like TCF that have made significant and sustainable commitments to our organization because they recognize how critical the success of Black-owned businesses is to the regional economy.

We have a long way to go in order to close that wealth gap. The Metro Detroit Black Business Alliance is here to add urgency to the task, but we need help. I was so proud to see so many local institutions and corporations stand up against institutional racism last summer. Now is the time to bring action to those verbal commitments. Join our village, and let's close this gap together.

See more here:

Commentary: It takes a village to close the racial wealth gap - Crain's Detroit Business