Showing posts with label david altman. Show all posts
Showing posts with label david altman. Show all posts

Tuesday, November 17, 2009

Green energy on rise across Africa but still lags behind other regions – UN

17 November 2009 – More green energy and climate-friendly projects target Africa than ever before, but the numbers still lag behind Asia and Latin America, the United Nations Environment Programme (UNEP) announced today.

The projects, from renewable energies to tree planting, are part of the Clean Development Mechanism (CDM) of the Kyoto Protocol – the global emissions reduction treaty. They allow developed countries to reduce emissions and meet global warming commitments by investing in carbon reduction projects in developing countries.

A total of 112 CDM Africa projects, worth a total of Euros 212 million a year, are at “validation, requesting registration or registered,” UNEP said, noting that this is up from 78 projects in 2008 and just two in 2004.

Around 80 per cent of the projects are in sub-Saharan Africa, with 28 projects underway or planned in South Africa, followed by 14 in Kenya. In North Africa, Egypt has 13 projects, followed by Morocco with 10.

The projects include two large solar water heating projects in South Africa, the promotion of energy efficient light bulbs in rural Senegal and a municipal waste-composting project in Uganda.

Experts say the latest figures underline the importance of Africa’s Governments pressing for reform in the weeks before the UN Climate Change Convention meeting in Copenhagen from 7 to 18 December.

At the same time, they noted that while the figures are cause for optimism, they also underline how few projects are currently flowing into Africa when compared with several other parts of the world.

Globally, there are over 4,730 CDM projects operating or close to approval. The lion’s share is in Asia and the Pacific with a total of just over 3,700 projects, followed by Latin America and the Caribbean with close to 820.

These issues will be part of the agenda at the Green Electricity Conference organized by UNEP, the Kenyan Government and the French development agency AFD in Nairobi on 23 and 24 November.

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Top UN official stresses academia’s role in solving global problems

17 November 2009 – A top United Nations official today called for a new culture of “intellectual social responsibility” to take education beyond the classroom to the search for real solutions to real problems, with the academic and educational sectors creating and sharing knowledge to help realise UN objectives and goals.

“The United Nations was founded on the premise of individual States working collectively for the greater global good,” UN Under-Secretary-General for Communications and Public Information Kiyo Akasaka told the World Innovation Summit for Education (WISE) in Doha, Qatar.

“It draws upon the strength of all nations to address a broad spectrum of security, development and human rights challenges. The time has come for scholarship to do the same, and to draw upon all its varied disciplines to inform the solutions to the problems the world faces today.

“The time has come for a new culture of ‘intellectual social responsibility’ – one that takes teaching, learning and research beyond the classroom, laboratory or campus; one that harnesses its energy and promise to the search for real solutions to the real problems that are confronted by real people; and one that recognizes that to be sustainable, education must itself have the capacity to sustain.”

Mr. Akasaka pointed to the “movement of minds” launched by his own Department of Public Information (DPI), mobilizing an international network of centres of higher learning through the Academic Impact initiative, with the simple premise that there is no area of scholarship or research which cannot have an impact on what the UN is trying to do.

“What the ‘Academic Impact’ asks is that each participating institution undertake one activity each year which can directly contribute to the realization of a specific United Nations objective,” he said of the initiative first announced by Secretary-General Ban Ki-moon last year, and which has been joined by more than 250 universities and institutions of higher learning so far and endorsed by international academic networks from every region, covering a range of disciplines.

These include technology, public health, art, physical and social sciences, global affairs and education itself which, Mr. Akasaka stressed, was central to achieving the UN Millennium Development Goals (MDGs). These include targets for slashing a host of ills, including extreme hunger and poverty, infant and maternal mortality, and lack of access to education and health care – all by 2015.

“Whether in the area of health, shelter, or livelihood, education is the means to their achievement,” Mr. Akasaka said, noting that Mr. Ban has called for a summit next year to galvanize action to achieve the MDGs by the deadline.

“As such, the Millennium Development Goals represent an excellent example of the critical link between academic research and action,” he said, underscoring that they were defined on the basis of what was seen as academically sustainable, with their benchmarks determined scientifically. Universities could mobilize their campuses to demonstrate support to the MDGs at the 2010 summit, he added, citing a tremendous groundswell of youth support, particularly from students, for the goals and the efforts of governments to attain them.

Mr. Akasaka cited both the Academic Impact and the mobilization for the MDGs as concrete examples of how to make education sustainable, a major focus of the WISE organized by Sheikha Mozah Bint Nasser Al Missned and the Qatar Foundation and bringing together a diverse group of experts and leaders.

“It will only be when education provides not only the skills, but also leads to opportunities to make use of them, that education can again be said to be truly sustainable,” he stressed, noting that 51 million jobs will need to be created in Arab countries within the next 10 years to absorb those entering the job market.

“The question remains whether the education of this region’s large youth population will be met at the same pace as the creation of jobs and other opportunities for the future educated men and women of this region. Failure to do so, and the resulting frustration and disappointment that could arise, might result in potentially ‘unsustainable’ societies,” he said.

Turning to the global picture, Mr. Akasaka said that worldwide 72 million children of primary school age are still denied the right to education, almost half of them in sub-Saharan Africa, followed by South Asia with 18 million out-of-school children. In Western Asia, 64 per cent of the 3 million children out of school are girls.

“It is only when a world preoccupied with immediate deadlines and timeframes looks to a vision of the future that the benefits of education become tangible and, indeed, sustainable,” he added.

In his speech to the summit, the Secretary-General’s High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States, Cheick Sidi Diarra, focused on ways to manage international academic mobility, which he called a “double-edged sword” that offers many possibilities for developing countries but also threatens to drain them of intellectual capital.

“If current trends of internationalization continue, the distribution of the world’s wealth and talent will be further skewed,” he said. “[But] the advancement of communication technology has made it increasingly feasible to tap intellectual migrants at their host countries, creating the phenomenon of brain circulation.”

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Saturday, November 14, 2009

GE pumps funds into wastewater research

General Electric (GE) is boosting research into recycled water, banking on the US$5 billion global market growing even bigger.

As rapidly increasing demand for water strains supplies across the Middle East, GE has announced that it will increase research spending on waste water filtration systems by 50 per cent, including at new research centres in Saudi Arabia and Singapore.

The US technology conglomerate has long been a major supplier of power generation equipment in the region, but now sees wastewater and water re-use systems as two of the “biggest opportunities” for growth, Steve Bolze, the head of the firm’s water and power equipment units, told Bloomberg.

GE, which has a number of business links to Mubadala Development, the strategic investment arm of the Abu Dhabi Government, will also conduct research on water technologies at an energy technology centre planned for Masdar City, the carbon-neutral development at the edge of the capital.

“We think it’s going to be a great business, not only in the US but in China,” said Jeffery Immelt, the chief executive of GE. “The entire Middle East is constrained so this is a problem that’s shared broadly.”

Experts say filtration and re-use of waste water for industry, irrigation and even household applications will receive more attention as rising consumption stretches the region’s water desalination capacity.

The International Energy Agency (IEA), a group of energy consuming nations that is based in Paris, predicts energy use will soar across the Middle East as demand for desalination doubles in the next 20 years. Of that new capacity, 70 per cent will be located in the Gulf states, Algeria and Libya, the IEA said.

The increasing amounts of energy used for desalination served as an incentive for greater use of recycled water, said Dieter Ernst, the chief executive of Berlinwasser, a German water company that operates a joint-venture firm in the UAE. “There’s a very strong link between energy consumption and water use,” Mr Ernst said. “The main question is what to do with it in the re-use cycle.”

Residents, he said, “are not so aware that water is a resource”.

Demand for water in Abu Dhabi is expected to double by 2030, according to a forecast presented last week by the Abu Dhabi Water and Electricity Company.

Faced with rising demand, the Government has moved to de-regulate the wastewater sector to encourage foreign investment and increase capacity for treatment and re-use of wastewater.

The emirate recycles 60 per cent of its water and has plans to increase the figure to 100 per cent, said Alan Thomson, the managing director of the Abu Dhabi Sewerage Services Company.

* with Bloomberg

cstanton@thenational.ae

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Transcript of President Obama's Asian-policy speech in Tokyo

The transcript of President Obama's 28-minute speech Saturday (Friday night in Washington) at Tokyo's Suntory Hall, where he discussed U.S.-Asia relations and the U.S.-Japan alliance before an invited audience.

Thank you so much. Arigatou. Thank you very much. (Applause.) Good morning. It is a great honor to be in Tokyo -- the first stop on my first visit to Asia as President of the United States. (Applause.) Thank you. It is good to be among so many of you -- Japanese and I see a few Americans here -- (applause) -- who work every day to strengthen the bonds between our two countries, including my longtime friend and our new ambassador to Japan, John Roos. (Applause.)

It is wonderful to be back in Japan. Some of you may be aware that when I was a young boy, my mother brought me to Kamakura, where I looked up at that centuries-old symbol of peace and tranquility -- the great bronze Amida Buddha. And as a child, I was more focused on the matcha ice cream. (Laughter.) And I want to thank Prime Minister Hatoyama for sharing some of those memories with more ice cream last night at dinner. (Laughter and applause.) Thank you very much. But I have never forgotten the warmth and the hospitality that the Japanese people showed a young American far from home.

And I feel that same spirit on this visit: In the gracious welcome of Prime Minister Hatoyama. In the extraordinary honor of the meeting with Their Imperial Majesties, the Emperor and Empress, on the 20th anniversary of his ascension to the Chrysanthemum Throne. In the hospitality shown by the Japanese people. And of course, I could not come here without sending my greetings and gratitude to the citizens of Obama, Japan. (Applause.)

Now, I am beginning my journey here for a simple reason. Since taking office, I have worked to renew American leadership and pursue a new era of engagement with the world based on mutual interests and mutual respect. And our efforts in the Asia Pacific will be rooted, in no small measure, through an enduring and revitalized alliance between the United States and Japan.

From my very first days in office, we have worked to strengthen the ties that bind our nations. The first foreign leader that I welcomed to the White House was the Prime Minister of Japan, and for the first time in nearly 50 years, the first foreign trip by an American Secretary of State, Hillary Clinton, was to Asia, starting in Japan. (Applause.)

In two months, our alliance will mark its 50th anniversary -- a day when President Dwight Eisenhower stood next to Japan's Prime Minister and said that our two nations were creating "an indestructible partnership" based on "equality and mutual understanding."

In the half-century since, that alliance has endured as a foundation for our security and prosperity. It has helped us become the world's two largest economies, with Japan emerging as America's second-largest trading partner outside of North America. It has evolved as Japan has played a larger role on the world stage, and made important contributions to stability around the world -- from reconstruction in Iraq, to combating piracy off the Horn of Africa, to assistance for the people of Afghanistan and Pakistan -- most recently through its remarkable leadership in providing additional commitments to international development efforts there.

Above all, our alliance has endured because it reflects our common values -- a belief in the democratic right of free people to choose their own leaders and realize their own dreams; a belief that made possible the election of both Prime Minister Hatoyama and myself on the promise of change. And together, we are committed to providing a new generation of leadership for our people and our alliance.

That is why, at this critical moment in history, the two of us have not only reaffirmed our alliance -- we've agreed to deepen it. We've agreed to move expeditiously through a joint working group to implement the agreement that our two governments reached on restructuring U.S. forces in Okinawa. And as our alliance evolves and adapts for the future, we will always strive to uphold the spirit that President Eisenhower described long ago -- a partnership of equality and mutual respect. (Applause.)

But while our commitment to this region begins in Japan, it doesn't end here. The United States of America may have started as a series of ports and cities along the Atlantic Ocean, but for generations we have also been a nation of the Pacific. Asia and the United States are not separated by this great ocean; we are bound by it. We are bound by our past -- by the Asian immigrants who helped build America, and the generations of Americans in uniform who served and sacrificed to keep this region secure and free. We are bound by our shared prosperity -- by the trade and commerce upon which millions of jobs and families depend. And we are bound by our people -- by the Asian Americans who enrich every segment of American life, and all the people whose lives, like our countries, are interwoven.

My own life is a part of that story. I am an American President who was born in Hawaii and lived in Indonesia as a boy. My sister Maya was born in Jakarta, and later married a Chinese-Canadian. My mother spent nearly a decade working in the villages of Southeast Asia, helping women buy a sewing machine or an education that might give them a foothold in the world economy. So the Pacific Rim has helped shape my view of the world.

And since that time, perhaps no region has changed as swiftly or dramatically. Controlled economies have given way to open markets. Dictatorships have become democracies. Living standards have risen while poverty has plummeted. And through all these changes, the fortunes of America and the Asia Pacific have become more closely linked than ever before.

So I want everyone to know, and I want everybody in America to know, that we have a stake in the future of this region, because what happens here has a direct effect on our lives at home. This is where we engage in much of our commerce and buy many of our goods. And this is where we can export more of our own products and create jobs back home in the process. This is a place where the risk of a nuclear arms race threatens the security of the wider world, and where extremists who defile a great religion plan attacks on both our continents. And there can be no solution to our energy security and our climate challenge without the rising powers and developing nations of the Asia Pacific.

To meet these common challenges, the United States looks to strengthen old alliances and build new partnerships with the nations of this region. To do this, we look to America's treaty alliances with Japan, South Korea, Australia, Thailand and the Philippines -- alliances that are not historical documents from a bygone era, but abiding commitments to each other that are fundamental to our shared security.

These alliances continue to provide the bedrock of security and stability that has allowed the nations and peoples of this region to pursue opportunity and prosperity that was unimaginable at the time of my first childhood visit to Japan. And even as American troops are engaged in two wars around the world, our commitment to Japan's security and to Asia's security is unshakeable -- (applause) -- and it can be seen in our deployments throughout the region -- above all, through our young men and women in uniform, of whom I am so proud.

Now, we look to emerging nations that are poised as well to play a larger role -- both in the Asia Pacific region and the wider world; places like Indonesia and Malaysia that have adopted democracy, developed their economies, and tapped the great potential of their own people.

We look to rising powers with the view that in the 21st century, the national security and economic growth of one country need not come at the expense of another. I know there are many who question how the United States perceives China's emergence. But as I have said, in an interconnected world, power does not need to be a zero-sum game, and nations need not fear the success of another. Cultivating spheres of cooperation -- not competing spheres of influence -- will lead to progress in the Asia Pacific. (Applause.)

Now, as with any nation, America will approach China with a focus on our interests. And it's precisely for this reason that it is important to pursue pragmatic cooperation with China on issues of mutual concern, because no one nation can meet the challenges of the 21st century alone, and the United States and China will both be better off when we are able to meet them together. That's why we welcome China's effort to play a greater role on the world stage -- a role in which their growing economy is joined by growing responsibility. China's partnership has proved critical in our effort to jumpstart economic recovery. China has promoted security and stability in Afghanistan and Pakistan. And it is now committed to the global nonproliferation regime, and supporting the pursuit of denuclearization of the Korean Peninsula.

So the United States does not seek to contain China, nor does a deeper relationship with China mean a weakening of our bilateral alliances. On the contrary, the rise of a strong, prosperous China can be a source of strength for the community of nations.

And so in Beijing and beyond, we will work to deepen our strategic and economic dialogue, and improve communication between our militaries. Of course, we will not agree on every issue, and the United States will never waver in speaking up for the fundamental values that we hold dear -- and that includes respect for the religion and cultures of all people -- because support for human rights and human dignity is ingrained in America. But we can move these discussions forward in a spirit of partnership rather than rancor.

In addition to our bilateral relations, we also believe that the growth of multilateral organizations can advance the security and prosperity of this region. I know that the United States has been disengaged from many of these organizations in recent years. So let me be clear: Those days have passed. As a Asia Pacific nation, the United States expects to be involved in the discussions that shape the future of this region, and to participate fully in appropriate organizations as they are established and evolve. (Applause.)

That is the work that I will begin on this trip. The Asia Pacific Economic Cooperation forum will continue to promote regional commerce and prosperity, and I look forward to participating in that forum this evening. ASEAN will remain a catalyst for Southeast Asian dialogue, cooperation and security, and I look forward to becoming the first American President to meet with all 10 ASEAN leaders. (Applause.) And the United States looks forward to engaging with the East Asia Summit more formally as it plays a role in addressing the challenges of our time.

We seek this deeper and broader engagement because we know our collective future depends on it. And I'd like to speak for a bit about what that future might look like, and what we must do to advance our prosperity, our security, and our universal values and aspirations.

First, we must strengthen our economic recovery, and pursue growth that is both balanced and sustained.

The quick, unprecedented and coordinated action taken by Asia Pacific nations and others has averted economic catastrophe, and helped us to begin to emerge from the worst recession in generations. And we have taken the historic step of reforming our international economic architecture, so that the G20 is now the premier forum for international economic cooperation.

Now, this shift to the G20, along with the greater voice that is being given to Asian nations in international financial institutions, clearly demonstrates the broader, more inclusive engagement that America seeks in the 21st century. And as a key member of the G8, Japan has and will continue to play a leading and vital role in shaping the future of the international financial architecture. (Applause.)

Now that we are on the brink of economic recovery, we must also ensure that it can be sustained. We simply cannot return to the same cycles of boom and bust that led to a global recession. We can't follow the same policies that led to such imbalanced growth. One of the important lessons this recession has taught us is the limits of depending primarily on American consumers and Asian exports to drive growth -- because when Americans found themselves too heavily in debt or lost their jobs and were out of work, demand for Asian goods plummeted. When demand fell sharply, exports from this region fell sharply. Since the economies of this region are so dependent on exports, they stopped growing. And the global recession only deepened.

So we have now reached one of those rare inflection points in history where we have the opportunity to take a different path. And that must begin with the G20 pledge that we made in Pittsburgh to pursue a new strategy for balanced economic growth.

I'll be saying more about this in Singapore, but in the United States, this new strategy will mean that we save more and spend less, reform our financial systems, reduce our long-term deficit and borrowing. It will also mean a greater emphasis on exports that we can build, produce, and sell all over the world. For America, this is a jobs strategy. Right now, our exports support millions upon millions of well-paying American jobs. Increasing those exports by just a small amount has the potential to create millions more. These are jobs making everything from wind turbines and solar panels to the technology that you use every day.

For Asia, striking this better balance will provide an opportunity for workers and consumers to enjoy higher standards of living that their remarkable increases in productivity have made possible. It will allow for greater investments in housing and infrastructure and the service sector. And a more balanced global economy will lead to prosperity that reaches further and deeper.

For decades, the United States has had one of the most open markets in the world, and that openness has helped to fuel the success of so many countries in this region and others over the last century. In this new era, opening other markets around the globe will be critical not just to America's prosperity, but to the world's, as well.

An integral part of this new strategy is working towards an ambitious and balanced Doha agreement -- not any agreement, but an agreement that will open up markets and increase exports around the world. We are ready to work with our Asian partners to see if we can achieve that objective in a timely fashion -- and we invite our regional trading partners to join us at the table.

We also believe that continued integration of the economies of this region will benefit workers, consumers, and businesses in all our nations. Together, with our South Korean friends, we will work through the issues necessary to move forward on a trade agreement with them. The United States will also be engaging with the Trans-Pacific Partnership countries with the goal of shaping a regional agreement that will have broad-based membership and the high standards worthy of a 21st century trade agreement.

Working in partnership, this is how we can sustain this recovery and advance our common prosperity. But it's not enough to pursue growth that is balanced. We also need growth that is sustainable -- for our planet and the future generations that will live here.

Already, the United States has taken more steps to combat climate change in 10 months than we have in our recent history -- (applause) -- by embracing the latest science, by investing in new energy, by raising efficiency standards, forging new partnerships, and engaging in international climate negotiations. In short, America knows there is more work to do -- but we are meeting our responsibility, and will continue to do so.

And that includes striving for success in Copenhagen. I have no illusions that this will be easy, but the contours of a way forward are clear. All nations must accept their responsibility. Those nations, like my own, who have been the leading emitters must have clear reduction targets. Developing countries will need to take substantial actions to curb their emissions, aided by finance and technology. And there must be transparency and accountability for domestic actions.

Each of us must do what we can to grow our economies without endangering our planet -- and we must do it together. But the good news is that if we put the right rules and incentives in place, it will unleash the creative power of our best scientists, engineers, and entrepreneurs. It will lead to new jobs, new businesses, and entire new industries. And Japan has been at the forefront on this issue. We are looking forward to being a important partner with you as we achieve this critical global goal. (Applause.)

Yet, even as we confront this challenge of the 21st century, we must also redouble our efforts to meet a threat to our security that is the legacy of the 20th century -- the danger posed by nuclear weapons.

In Prague, I affirmed America's commitment to rid the world of nuclear weapons, and laid out a comprehensive agenda to pursue this goal. (Applause.) I am pleased that Japan has joined us in this effort, for no two nations on Earth know better what these weapons can do, and together we must seek a future without them. This is fundamental to our common security, and this is a great test of our common humanity. Our very future hangs in the balance.

Now, let me be clear: So long as these weapons exist, the United States will maintain a strong and effective nuclear deterrent that guarantees the defense of our allies -- including South Korea and Japan. (Applause.)

But we must recognize that an escalating nuclear arms race in this region would undermine decades of growth and prosperity. So we are called upon to uphold the basic bargain of the Nuclear Non-Proliferation Treaty -- that all nations have a right to peaceful nuclear energy; that nations with nuclear weapons have a responsibility to move toward nuclear disarmament; and those without nuclear weapons have a responsibility to forsake them.

Indeed, Japan serves as an example to the world that true peace and power can be achieved by taking this path. (Applause.) For decades, Japan has enjoyed the benefits of peaceful nuclear energy, while rejecting nuclear arms development -- and by any measure, this has increased Japan's security and enhanced its position.

To meet our responsibilities and to move forward with the agenda I laid out in Prague, we have passed, with the help of Japan, a unanimous U.N. Security Council resolution embracing this international effort. We are pursuing a new agreement with Russia to reduce our nuclear stockpiles. We will work to ratify and bring into force the test ban treaty. (Applause.) And next year at our Nuclear Security Summit, we will advance our goal of securing all the world's vulnerable nuclear materials within four years.

Now, as I've said before, strengthening the global nonproliferation regime is not about singling out any individual nations. It's about all nations living up to their responsibilities. That includes the Islamic Republic of Iran. And it includes North Korea.

For decades, North Korea has chosen a path of confrontation and provocation, including the pursuit of nuclear weapons. It should be clear where this path leads. We have tightened sanctions on Pyongyang. We have passed the most sweeping U.N. Security Council resolution to date to restrict their weapons of mass destruction activities. We will not be cowed by threats, and we will continue to send a clear message through our actions, and not just our words: North Korea's refusal to meet its international obligations will lead only to less security -- not more.

Yet there is another path that can be taken. Working in tandem with our partners -- supported by direct diplomacy -- the United States is prepared to offer North Korea a different future. Instead of an isolation that has compounded the horrific repression of its own people, North Korea could have a future of international integration. Instead of gripping poverty, it could have a future of economic opportunity -- where trade and investment and tourism can offer the North Korean people the chance at a better life. And instead of increasing insecurity, it could have a future of greater security and respect. This respect cannot be earned through belligerence. It must be reached by a nation that takes its place in the international community by fully living up to its international obligations.

So the path for North Korea to realize this future is clear: a return to the six-party talks; upholding previous commitments, including a return to the Nuclear Non-Proliferation Treaty; and the full and verifiable denuclearization of the Korean Peninsula. And full normalization with its neighbors can also only come if Japanese families receive a full accounting of those who have been abducted. (Applause.) These are all steps that can be taken by the North Korean government if they are interested in improving the lives of their people and joining the community of nations.

And as we are vigilant in confronting this challenge, we will stand with all of our Asian partners in combating the transnational threats of the 21st century: by rooting out the extremists who slaughter the innocent, and stopping the piracy that threatens our sea lanes; by enhancing our efforts to stop infectious disease, and working to end extreme poverty in our time; and by shutting down the traffickers who exploit women, children and migrants, and putting a stop to this scourge of modern-day slavery once and for all. Indeed, the final area in which we must work together is in upholding the fundamental rights and dignity of all human beings.

The Asia Pacific region is rich with many cultures. It is marked by extraordinary traditions and strong national histories. And time and again, we have seen the remarkable talent and drive of the peoples of this region in advancing human progress. Yet this much is also clear -- indigenous cultures and economic growth have not been stymied by respect for human rights; they have been strengthened by it. Supporting human rights provides lasting security that cannot be purchased in any other way -- that is the story that can be seen in Japan's democracy, just as it can be seen in America's democracy.

The longing for liberty and dignity is a part of the story of all peoples. For there are certain aspirations that human beings hold in common: the freedom to speak your mind, and choose your leaders; the ability to access information, and worship how you please; confidence in the rule of law, and the equal administration of justice. These are not impediments to stability, they are the cornerstones of stability. And we will always stand on the side of those who seek these rights.

That truth, for example, guides our new approach to Burma. Despite years of good intentions, neither sanctions by the United States nor engagement by others succeeded in improving the lives of the Burmese people. So we are now communicating directly with the leadership to make it clear that existing sanctions will remain until there are concrete steps toward democratic reform. We support a Burma that is unified, peaceful, prosperous, and democratic. And as Burma moves in that direction, a better relationship with the United States is possible.

There are clear steps that must be taken -- the unconditional release of all political prisoners, including Aung San Suu Kyi; an end to conflicts with minority groups; and a genuine dialogue between the government, the democratic opposition and minority groups on a shared vision for the future. That is how a government in Burma will be able to respond to the needs of its people. That is the path that will bring Burma true security and prosperity. (Applause.)

These are steps that the United States will take to improve prosperity, security, and human dignity in the Asia Pacific. We will do so through our close friendship with Japan -- which will always be a centerpiece of our efforts in the region. We will do so as a partner -- through the broader engagement that I've discussed today. We will do so as a Pacific nation -- with a President who was shaped in part by this piece of the globe. And we will do so with the same sense of purpose that has guided our ties with the Japanese people for nearly 50 years.

The story of how these ties were forged dates back to the middle of the last century, sometime after the guns of war had quieted in the Pacific. It was then that America's commitment to the security and stability of Japan, along with the Japanese peoples' spirit of resilience and industriousness, led to what's been called "the Japanese miracle" -- a period of economic growth that was faster and more robust than anything the world had seen for some time.

In the coming years and decades, this miracle would spread throughout the region, and in a single generation the lives and fortunes of millions were forever changed for the better. It is progress that has been supported by a hard-earned peace, and strengthened by new bridges of mutual understanding that have bound together the nations of this vast and sprawling space.

But we know that there's still work to be done -- so that new breakthroughs in science and technology can lead to jobs on both sides of the Pacific, and security from a warming planet; so that we can reverse the spread of deadly weapons, and -- on a divided peninsula -- the people of South can be freed from fear, and those in the North can live free from want; so that a young girl can be valued not for her body but for her mind; and so that young people everywhere can go as far as their talent and their drive and their choices will take them.

None of this will come easy, nor without setback or struggle. But at this moment of renewal -- in this land of miracles -- history tells us it is possible. This is the --America's agenda. This is the purpose of our partnership with Japan, and with the nations and peoples of this region. And there must be no doubt: As America's first Pacific President, I promise you that this Pacific nation will strengthen and sustain our leadership in this vitally important part of the world.

Thank you very much.



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Friday, November 13, 2009

World Bank - Africa Needs U.S. $93 Billion For Infrastructure

Abuja — The World Bank said yesterday that the amount needed to fix infrastructure in Africa is twice what was previously estimated. It put the new figure at $93 billion half of which, it noted, should go into boosting power supply.

A joint study just released by the bank from Washington cited examples of infrastructural challenges in the continent. African consumers pay twice as much for basic services as people elsewhere in the world.

A monthly basket of prepaid mobile telephone services costs $12 in Africa but only $2 in South Asia.

Resource-rich countries like Nigeria and Zambia can manage funding gap of four percent of GDP. For much of the rest of the continent, the task ahead is daunting.

The poor state of infrastructure in Sub-Saharan Africa cuts back national economic growth by two percentage points every year. Bank study team which assessed the state of infrastructure in 24 countries across the continent also discovered that poor electricity, water, roads and information and communications technology (ICT) reduces productivity by as much as 40 percent.

A separate statement from the bank in Midrand, South Africa, said the study, is "one of the most detailed ever undertaken on the African continent." It was jointly conducted by the African Union Commission, African Development Bank, Development Bank of Southern Africa, Infrastructure Consortium for Africa, the New Partnership for Africa's Development, and the World Bank. Besides relevant ministries, the study surveyed 16 rail operators, 20 road entities, 30 power utilities, 30 ports, 60 airports, 80 water utilities, and over 100 ICT operators, as well as the relevant ministries in 24 countries.

Results were derived from detailed analysis of spending needs and fiscal costs as well as sector performance benchmarks.

In other words, the study relied on based on country-level microeconomic models and covered operational and financial aspects as well as the country's institutional framework.

"Modern infrastructure is the backbone of an economy and the lack of it inhibits economic growth," says Obiageli Ezekwesili, World Bank

Vice President for the Africa Region and former Nigerian minister, who spoke from South Africa. "This report shows that investing more funds without tackling inefficiencies would be like pouring water into a leaking bucket. Africa can plug those leaks through reforms and policy improvements which will serve as a signal to investors that Africa is ready for business."


US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Tuesday, September 29, 2009

David Altman - US Export Council


David Altman, The US Export Council.


The US Export Council specializes in facilitating market entry for US companies to the Middle East and Africa. Its consultants include former government, foreign trade, legal, investment, media and marketing experts.


We offer consulting, marketing and media skills to U.S. companies and access to our network and services within the US on behalf of our internationally based clients.


The US Export Council started officially in January 1992 and today has clients in six countries including the United States, UAE, North Africa and Southern Africa.


In 1993, with the support from U.S. Secretary of Commerce, Ron Brown, President Bill Clinton and Nelson Mandela, we developed the annual "Made In USA Expo" in Johannesburg. Bringing the first US companies to a Post Apartheid, South Africa. These events, soon became the largest showcases of US Products and Services in Southern Africa.


According to the US Department of Commerce, the US Export Council's efforts in the area of bi-lateral trade generated in excess of $2 billion in new exports from the United States to Southern Africa, in addition to numerous joint ventures, investments and technology transfers.


In South and East Africa, Mr. Altman was instrumental in opening the doors to the first formal trade and investment between Kenya, Uganda, Tanzania and South Africa in over thirty years.


We also played a role in South Africa's first Post Apartheid $750 million bond issue, which was managed by Goldman Sachs in London and the Swiss Bank Corporation.


Similarly, in Kuwait in 1995, 1996 and 1997 under the auspices ofU.S. Ambassador Ryan Crocker and the U.S. Department of Commerce, our team launched the first "Made In USA" events in Kuwait City which produced joint ventures and significant additional U.S Exports
to that region.


Building on these successes, we have over a decade, consulted with dozens of U.S. companies, guiding them in successful entry to high growth markets in The Middle East and Africa.


In the United Arab Emirates we recently concluded a deal with Tejari a division of Dubai World providing electronic access for small and medium sized US exporters to the Middle East export markets.


We also provide targeted services to internationally based clients looking for business opportunities and market entry in to the U.S.


Prior to joining the US Export Council, Mr. Altman was President of East West, a management and marketing company based in Los Angeles and Milan, Italy for 10 years.


Mr. Altman serves on the Advisory Board of Disaster Psychiatry Outreach in New York and has worked in support of Amnesty International, UNICEF, The International Rescue Committee, El Rescate and the Red Cross


Mr. Altman also serves as President of his media firm, Jungle Media Ltd. which in addition to film finance, and public relations has produced films for television, most recently Dead at Daybreak, released as "Orion" an award winning, foreign language detective series, based on the best selling novel by Deon Meyer. 


Founder Global Leadership Institute (GLI) in New York, a social entrepreneurship venture.

GLI was formed to help build Southern Africa’s capacities and address urgent matters of human concern. Partnering with leading institutions and experts in Southern Africa and around the world, programs created by GLI are designed to teach essential leadership skills, analytical thinking, long-term planning, collaborative decision-making and problem-solving



Mr. Altman was the Founding Publisher of South Africa, The Journal of Trade, Industry and Investment which received a Golden Ink Award in New York for publishing excellence.


http://www.usexportcouncil.com

Tuesday, May 26, 2009

A Round Table with the South African Government and Key Business Leaders August 19th - 21st 2009 in Johannesburg, South Africa.

United StatesSouthern Africa

Round Table with the Government and Key Business Leaders

≈ 19 - 21 August 2009 Johannesburg, South Africa

With Presidents Obama and Zuma charting a new era of cooperation between the United States and sub-Saharan Africa, business and government leaders from South and Southern Africa welcome counterparts from the U.S. to an informal dialogue in which CEOs, policymakers and opinion leaders will explore mutually-beneficial links in business, philanthropy, education and corporate responsibility.

Senior representatives of the South African Government and local business leaders will engage in open and off-the-record discussions commercial opportunities in South and Southern Africa. This advanced, interactive forum will facilitate business connections, and enable the participants to gain new perspectives.

Topics to be discussed include: the global financial crisis and its impact on the region; investment in infrastructure; energy; healthcare; financial markets; food processing; homeland security and defence cooperation. Early acceptances include Michael Spicer - CEO, Business Leadership South Africa, Saki Macozoma - Deputy Chairman, Standard Bank, Popo Molefe – Chairman, PetroSA & CEO, Lereko Investments and Chris Hart, Chief Economist, Investment Solutions.

Wednesday, August 19th program begins with presentations by leading experts and business people from the U.S. and South Africa. Following a networking luncheon, there will be one-on-one meetings with appropriate selected individuals and companies.

Invited South African companies include: Eskom, Sasol, Medi-Clinic, Discovery, Netcare, Educor, Barclays-Absa, Firstrand, Development Bank of Southern Africa, Industrial Development Corporation, Transnet, MTN, COEGA, Telkom, Dimension Data and others.

AllWorld Network, Chaired by Professor Michael Porter, Harvard University Business School and Endeavor, South Africa will announce the launch of the South Africa Fast Growth 100, identifying and advancing the next generation of company builders and entrepreneurs. AllWorld co-Founders Deidre M. Coyle Jr, Anne Habiby and Malik Fal, Endeavor, presenting.

Thursday, August 20th is reserved exclusively for business-to-business meetings which will be arranged in advance.

Thursday, August 20th Evening Reception to honor MEMBERS OF THE UNITED STATES CONGRESS

Remarks by:

U.S. Congressman Bobby L. Rush, Chair Subcommittee on Commerce, Trade and Consumer Protection of Energy and Commerce Committee and Co-chair of The African Partnership for Economic Growth (APEG) Caucus - - a new Congressional initiative to expand and deepen trade and investment links between the U.S. and sub-Saharan Africa.

Friday, August 21st is reserved for meetings and a luncheon with the Congressional Delegation and Trade and Business Representatives from:

Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe.

Attendance at this event is by invitation only, consisting of a pre-selected group of regional and international industry leaders. Should you be interested in participating, please contact: David Altman Tel: +1 212.904.0248 davidaltman@usexportcouncil.com

Co-organized and Sponsored by:

Omega Investment Research

US Export Council

Business Council for International Understanding

KRL International LLC

Mark Clack Senior Advisor, KRL International LLC Tel 202.223.1101 mark@krlinternational.com

Johnny Brown Senior Advisor US Export Council

Travel Packages including flights and accommodation are available. Upon confirmation of your attendance, kindly contact Daniel Bloch at Omega Investment Research on +27 (0)21 689 7881 or email: danielb@omegainvest.co.za

Link to the Invitation http://www.omegainvest.co.za/USConference.html

Friday, May 15, 2009

South Africa's New Government

The general response in South Africa and internationally to President Zuma's Cabinet appointments has been very positive. He got rid of most of the dead wood and introduced several exciting personalities. From a business point of view this is probably the strongest Cabinet South Africa has had in decades. Having said that, the financial/economic cluster of ministerial personalities is also very diverse in the views its members represent. There will be lots of debates. If anything Trevor Manuel's appointment in the presidency with responsibility for the National Planning Commission considerably enhances his influence; and Pravin Gordhan's appointment as Minister of Finance - given the brilliant job he did in overhauling the country's revenue service - has been welcomed by business. He certainly is Manuel’s intellectual equal.

A welcome member of this team is Robert Davies who has been promoted from deputy to Minister of Trade and Investment. He is energetic and imaginative and is going to make a world of difference to DTI, which has been one of the worst run ministries. Adding spice is Ebrahim Patel, a textile industry trade unionist, as Minister of Economic Development; and the appointment of Collins Chabaneto to ensure that everybody does their job - echoing Zuma’s sentiment that he will not tolerate sloth – is a welcome innovation. Tokyo Sexwale, although not formally in the financial/economic cluster, will offer a shoulder for business to cry on.

So generally speaking, as the London Financial Times put it two days ago: “The new South African Cabinet unveiled by Jacob Zuma at the week-end seems both to have calmed business fears he might lurch to the left, and inspired hope that ministers - including the finance minister Pravin Gordhan - will raise performance." But some specific random observations:

  • Regrettable is the transfer of Naledi Pandor, one of the best Ministers of Education South Africa has had in years, to Science and Technology; and equally regrettable is the decision, while promoting Marthinus van Schalkwyk to full minister, to separate environmental affairs and tourism, leaving him with only tourism - as Van Schalkwyk has very deservedly established himself internationally as a serious environmentalist. And I am sorry not to see Mathews Phosa in the Cabinet. As an alternative, he would make a good High Commissioner in London.
  • In the short time she was in the health portfolio, Barbara Hogan impressed everybody and, not surprisingly, the various health lobbies have expressed disappointment that she has been transferred from Health to Public Enterprises - also an important ministry but badly managed by successive incumbents. Hogan is a strong, creative person with highly developed management skills, and Health’s loss is Public Enterprises’ gain.
  • The appointment of the Leader of the Freedom Front Plus, Pieter Mulder, as a deputy minister should not have caused the surprise it did. Zuma very consciously wooed the Afrikaners in the spirit of his consensual style and partly to counter COPE, whose Mosiuoa Lekota has a strong appeal within that community. Mulder’s portfolio of agriculture, forestry and fishing is most appropriate. Not surprising is Jeremy Cronin’s appointment as a deputy minister for transport. He is the least dogmatic, most intelligent and likeable communist I know. And every government should have its poet.

Beyond the personalities involved and the contribution they may be expected to make, the composition of the new parliament and Cabinet represent progress in the South African political system in two very important areas. Firstly, one of the big failures in continental African politics is the lack of politics as a vocation. Politics, after all, is an end in itself. People who go into politics do so for many different reasons. But in mature societies the main reason for choosing a political career is to gain power and influence, and so to contribute to the betterment of a society. That has been absent in Africa, where politics has mainly been the route to self-aggrandisement and wealth. Looking at the new Cabinet, I have a strong sense that the vocational element has been strengthened. Appointments have been made on ability to do the job rather than on contributions to the struggle, etc. Without wishing to ex aggerate this (because after all he has already made his fortune) Tokyo Sexwale’s commitment to politics and inclusion in the Cabinet has both practical and symbolic significance - in that he has stood down as executive chairman of his company Mvelaphanda and will no doubt resign his other many directorships.

The second important development arising out of the composition of the newly- elected Parliament and Cabinet is a strengthening of the middle ground of South African politics. As Anthony Sampson reminds us in his excellent memoir The Anatomist, the success of democracy depends very largely on the predominance of the middle ground and the consensus based on it: "In Britain both main parties roughly adhered to the post-war settlement, which included maintaining full employment, and allowing a mixed economy of private and public industries, accepting trade unions and maintaining high taxes to finance public services. They took similar attitudes to most British institutions, from nationalised industries to the army and the monarchy." The criticism so many people directed at Maggie Thatcher was that, as a self-declared “conviction" politician, she destroyed this consensus.

South Africa's successful transition from a minority race-dominated state to full democracy was possible because FW De Klerk and Nelson Mandela maintained the centre, the middle ground. Between them, and between the ANC and the National Party, they marginalised those on the left and on the right and held the centre. The middle ground disappeared after 1994, with the ANC’s total domination of Parliament, policy-making and almost all institutions of government. With the recent election, the establishment of COPE and its emergence as a major opposition in 4 provinces, and an impressive performance by the Democratic Alliance in winning the Western Cape and setting itself up as the official opposition in 3 provinces, coupled - and this is very important - with Jacob Zuma's commitment to a consensual style of leadership, we can begin to explore as South Africans a middle ground of shared beliefs and values.

Dr Denis Worrall
Email: kamreyac@omegainvest.co.za for all enquiries

Copyright 2008. Omega Investment Research. All Rights Reserved
www.omegainvest.co.za


US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Monday, April 13, 2009

South Africa- Wanted: a national industry base

South Africa needs to adopt policies that develop local capacity.

In the global downturn, there is broad recognition that government investment in the economy has a critical role to play in kick-starting economic activity and, consequently, boosting both business confidence and private investment.

The challenge is to spend this money in a way that optimises its impact on domestic economic activity, particularly investment and the development of technological and industrial capabilities.

Between 1976 and 1994, public investment in infrastructure dropped from 16% of GDP to around 6%. Between 1994 and 2004, fixed investment remained at the 5% to 6% level. As a result of this drop in investment, our capital procurement capabilities declined, as well as the capacity of supplier industries.

Analysis by the Department of Public Enterprises (DPE), with the Industrial Development Corporation, suggested that up to 40% of the requirement for Eskom and Transnet investment programmes would need to be imported.

It is tempting to believe that the solution is simple: proclaim a policy directive that the public sector needs to procure a high proportion of the capital programmes locally. This would seem to provide additional stimuli to national industry and decrease the import bill — both good news for growth. The problem is that in many areas local capabilities do not exist, or where they do exist they are comparatively expensive.

We need to promote investment to build a globally competitive national industry, capable of supplying not just the needs of the national infrastructure programme, but of exporting as well. The question is how.

The first step must be to ensure basic procurement disciplines are put in place. Very often national suppliers are excluded because of inadequate communication between the buyer and the supplier community. Equipment is often not procured locally because the tender is unnecessarily specified, thus excluding national suppliers. Inadequate notice of the tender means national suppliers are not able to prepare capacity to meet the demand.

After the massive downturn in government investment in the 1970s, suppliers are wary of making significant investments in plant and skills without some security of demand. This requires the supplier entering into a longer term relationship with the customer, giving it the confidence to invest.

While this can give the supplier additional power, in practice, when the supplier depends on a major customer, these relationships are often associated with continuous productivity and quality improvements and innovations. This has happened in the automotive and deep mining industries in South Africa.

As a first step towards building a developmental procurement culture, the DPE, with the support of the Department of Trade and Industry, introduced the competitive supplier development programme. This requires Eskom, Transnet and the Pebble Bed Modular Reactor to produce strategic supplier development plans, based on an assessment of the demand created by their five-year infrastructure plans, and an assessment of the capabilities of the national supplier community.

The plans encourage the enterprises to start thinking about supplier development at the earliest stage of the project development cycle, with an emphasis on where the enterprise will build longer term relationships.

In addition, they are made public so the supplier community can plan ahead.

Transnet took the plan a step further by establishing a rail and port supplier association — a platform for communication.

Also, in partnership with the DPE and the UN Development Organisation, Transnet launched a supplier benchmarking programme to encourage suppliers to achieve world-class levels of efficiency and quality, and to enable Transnet to broker developmental relationships between global original equipment manufacturers and South African companies.

Eskom is establishing component hubs to encourage development of national capabilities in key components.

The basic requirement for achieving leverage from procurements is to have highly skilled procurement practitioners in place overseeing the project development cycle.

Transnet has launched an ambitious procurement capability programme. In partnership with the UK Chartered Institute of Procurement and Supply, it has a comprehensive procurement capacity building programme to provide increasingly sophisticated skills to support supplier development. In addition, Transnet annually benchmarks the quality of the procurement capability as a whole. So, it is encouraging investment in suppliers while achieving significant savings from procuring effectively.

There is no reason large private sector companies cannot also enhance their procurement capabilities and leverage their procurements to promote investment and growth in their supplier industries. This is already an accepted practice in advanced manufacturing industries such as automotive and aerospace.

South Africa already pays an effective premium for black economic empowerment. It is critical that this policy coherently supports supplier development.

For example, the empowerment profile of a company should take into account the “empowered value add” or the concrete value that is being produced in South Africa. For example, a company with a 50% empowerment score, but that produces a product in South Africa, should be given a higher rating than a company with an 80% score, but which imports the product.

Capital expenditure programmes in state- owned enterprises, government and private sector companies create vast potential for the development of supplier industries and contribute to growth and employment.

Enormous value is lost to the economy through inefficient procurement and the absence of concerted national initiatives to build procurement capability. Investments in building national capabilities are not being made because of poor procurement planning and execution. We need to implement policies that encourage and reward the building of capability.

Dr Ritchken is strategic projects adviser to the Department of Public
Enterprises

http://www.thetimes.co.za/Business/BusinessTimes/Article1.aspx?id=968853

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Saturday, March 28, 2009

Retooling Strategies to Help Dubai Retain its �Sizzle�

BGR Group Managing Director Morris Reid says companies in the Gulf should change their approach and pursue business with smaller US companies

Morris Reid loves his cigar and is a self-confessed watch and cuff-links freak. A big man, when he is not jumping in and out of trans-continental flights to push what he calls commercial diplomacy, Reid can often be found on US television networks commenting on political and economic issues.

As Managing Director of the BGR Group, a large US lobbying firm, Reid mostly works with a full plate � at conferences, seminars, meetings and, as I learned, at lunches too. He worked earlier with the Clinton administration, following which he ran his own public affairs company for several years until it merged with BGR around the time the United States was electing a new president, at the end of last year.

Lobbying, for Reid, is a necessity in the world�s biggest economy. �I think the Catholic Church has a lobbyist too,� he says, tucking into his green salad on a fine March afternoon at the Capital Club (Reid was in town for the CONNECT-World CEO Conference). His mother strictly enforced a vegetables-first policy on the dining table, he tells me, adding that while lobbyists could be found everywhere in the world, the system has been formalised in the United States.

�Lobbying has been around since governments were created. There will always be a situation where people have interests that need to be represented and advocated for. Again, in the world�s biggest economy, there are certain winners and losers, and you certainly want to be able to advocate your position,� Reid tells me, defending lobbyists and power brokers while expanding on his definition of commercial diplomacy.

Reid calls himself a pro-business Democrat and tells me that, in a world that has changed hugely since Barack Obama took over the US presidency in January, he is seeking opportunities to bring together small and medium-sized businesses � the backbone of the US economy � with similar-sized firms in the Gulf region.

�I see my role as a facilitator of business-to-business, business-to-government and government-to-government interaction, but at the end of the day politicians cannot be the only solution. I see my role as being a conduit of bringing parties together from the Gulf and in America to do business,� he tells me.

Deals are important to a man who has worked with high-profile individuals, government officials and corporate executives in solving political and corporate issues for more than 15 years. His best deal, he says, is always the one he�s working on at the moment. �The deals I remember and reflect upon the most are those that had major economic impact and also serve a larger agenda,� he explains, while quickly asking questions about the impact of the global economic downturn on Dubai and the United Arab Emirates.

The world has changed in the past few months, perhaps forever. Uncertainty and a financial collapse have forced most governments to intervene in markets and companies, doling out money to the needy and nearly nationalising private companies. Big government is everywhere, watching, questioning, demanding, and interfering. Is socialism (that dreaded word) taking roots in capitalistic societies, I ask Reid.

�The answer is yes, but a government has to always act in an appropriate way. When the very stability of the global markets is hanging in the balance, the government must step in. And that is what they are doing,� Reid says, adding that a government must also know when to stop.

Is that always possible? �No,� he says. �It is the people who have to be vigilant and make sure the government does not over-step. One thing we always say is that it is hard to get it back once you give it up. That is a real concern now.�

However, the new administration has taken care of the one big concern he had in the past about America�s global image. �It is a whole new game� America is ready to re-engage the world. The good news is that with President Barack Obama, America is a welcoming society again. By and large, people, particularly from this region, felt that they were not welcome. Clearly, under President Obama, the welcome mat is open.� But there are internal issues that America faces as it battles recession and works to extricate itself from its financial mess.

�In the short term, America is looking inward because it is in lot of pain. The reason why we are in pain is because we are not long-term planners. We are short-term planners. We are more of a reactor society than a strategic one. We generally don�t plan for the long term, whereas the Chinese and some of the Asian societies are much better at planning,� Reid says. He cites the example of a ravaged US automobile industry that was once the world leader but lost out due to its lack of innovation. He also blames American entrepreneurs who lacked a global perspective, unlike their counterparts from other parts of the world.

�Long term, America is going to have a more open outlook because we are becoming more diverse. We still have three exports that people of the world want,� he tells me, counting education, health care and entertainment on his fingers.

Obama, according to him, has two and half years to fix things. �In 30 months, if the average American does not feel that we have turned a corner on the economic crisis... that cripples the President�s political posturing. So he has 30 months to turn this page, because if the will of the people [is] not with him, politicians will act differently with Barack Obama. Right now, politicians generally want to give him the benefit of doubt, as he has got public sentiment on his side. In 30 months, these politicians will be fighting for their own survival.�

The Gulf region, Reid says, needs to focus more on the small and medium-sized businesses in America in its attempt to diversify their economies beyond energy. Then he returns to his mother and her vegetables. �In a lot of ways, they (this region) didn�t eat vegetables. They went for the sizzle. The real trick for the region is how to sustain it when oil is below $40� per barrel, he says, urging governments here to engage with different US companies than they have in the past. Instead of trying to do deals with the 1,000 largest companies in the United States, firms in the Gulf should pursue America�s 23 million small businesses, he says, donning his analyst�s hat.

Dubai, he says, needs to identify its core customer to jump quickly out of its crisis. �The core customer is the family that wants to come and have a great experience, maybe look for a second home. There is a super-high end of the market, and there is the middle tier of the market. This is where they need to focus,� he says, giving the example of Las Vegas, which retooled its marketing efforts once it figured out that it needed to send out welcome notes to families and not just gamblers.

Editor Rahul Sharma savours the idea of mixing work with pleasure for this column. You can write to him at rahul@khaleejtimes.com.


US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Saturday, March 7, 2009

New US Commerce Secretary can set stage for stronger economic recovery

Former Washington Gov. Gary Locke has some depressing economic data to confront as he prepares for the job of America's Chief Export Officer. There is little good news anywhere in the world on the trade front and 2009 does not promise export growth. However, reinforcing President Obama's confidence in American business "as the engine of growth," trade data show that, once confirmed, Commerce Secretary Locke has good reason to lead the charge in encouraging U.S. businesses to invest in future success overseas thus creating jobs at home.

As has been typical for the past three decades, global activities reflect, in an outsized way, the shifts in the domestic economy. When domestic consumption is up, trade is up even more. Nowadays, when domestic activities are down, trade is down as well, only much more so. With expected economic decline in 2009 and contracting global demand, further international slides are probable. The release of annual trade data by the Commerce Department last month showed U.S. exports declined 6 percent in December following a depressing November. Yet, a look at the trade data offers encouraging longer-term implications for U.S. exporters and the workers they employ.

First, the decline in the U.S. trade deficit, which hit a six-year low in December, was good news. The trade data reveal underlying strength in U.S. exports. Barring a steep rise in the price of oil imports, the decline in the trade deficit, which stands at a daunting $678 billion for the year 2008, promises to continue. Imports are down more sharply than exports, despite their larger base. Economic theory, recent trends, and experience from previous cycles promise a continuation of that import decline. Any import growth in 2008 was attributable to the high price of petroleum products.

On the export side, American goods and services have continued to build demand among overseas customers. 2008 was a record year for U.S. exports, which passed $1.8 trillion. Exports grew at a rate of 12 percent over 2007 and now comprise 13.1 percent of U.S. GDP. This marks a continuing trend, since U.S. annual export growth has been in double digits from 2004 through 2008 and has outpaced import growth since 2006. Through mid-summer, U.S. export growth had been sizzling along at a rate of nearly 19 percent before slowing as the global economy began to contract and Boeing workers went on strike.

In seven of the top 10 export markets for the United States in 2008, American exports growth exceeded that of imports by nearly twice or more. U.S. exports to Mexico and China, our second- and third-largest export markets, grew at 11.4 percent and 9.5 percent, respectively, while imports only grew at 2.5 percent and 5.1 percent. Exports to Canada, our largest market, grew at 5 percent while imports grew slightly more at 5.8 percent, reflecting the interconnectedness of the two economies.

Trade liberalization has been a significant reason. The U.S. merchandise trade deficit with free-trade-agreement (FTA) partner countries narrowed by $ 16 billion, while the deficit with the non-FTA countries increased by $22 billion. In 2008, the United States actually had a trade surplus in manufactured goods of $17 billion with the 14 countries with which it had an FTA in effect. Free trade agreements work!

Equally important is also the fundamental fact that American manufacturers and service providers are increasingly delivering what the world prefers and wants. American companies have a good competitive position globally because of a decades-in-the-making dedication to improved productivity, innovation, quality, customer-centrism, marketing research and branding. When global buyers regain confidence, American brands can be confident.

So, what can Commerce Secretary Locke do to support the growth track of exports?

For one thing, given the advantages free-trade agreements bring to American exporters, he should be a champion for Congressional passage of pending agreements with Colombia, Panama and Korea. These agreements would give a much-needed shot-in-the-arm during this difficult economic stretch as they would lessen the current uneven tariff burden for U.S. companies in these markets. There are no fundamental obstacles to the Panama FTA. With Colombia, there are paths forward to help resolve Congressional reservations over the issues of violence against labor leaders and related criminal impunity. The Korean FTA presents a bigger challenge in Congress but it would also bring a bigger economic reward.

But, more immediately, Locke needs to ensure funding and commitment for export-promotion efforts. The Commerce Department's International Trade Administration has a powerful export-promotion capability all around the world and the expertise needed to help more American companies sell overseas. The timing is right. Our research shows that it takes new exporters about two years to get their international legs before they begin to realize good sales results. Just as our university sees a great increase in the applications for our MBA program — since many students want to stock up on knowledge and capabilities during bad times, companies can do the same.

Now is the time to use slack resources to explore new market opportunities, new cultures and new customers. Then, when economic conditions get better, companies can pounce on the markets they have researched and prepared for. Export promotion is a vital economic stimulus. Let's not lose time in applying the government capabilities to support our firms.

Michael Czinkota researches international marketing issues at Georgetown University and the University of Birmingham in the United Kingdom.

Charles Skuba teaches international business and marketing at Georgetown University.

http://seattletimes.nwsource.com/html/opinion/2008823056_opinb08czinkota.html

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Thursday, February 12, 2009

South African Government to Offer Eskom Loan Gaurentees

South Africa's Treasury will provide electricity utility Eskom with loan guarantees of 175.97 billion rand ($17.71 billion) over the next 5 years to help it raise funds for spending requirements.

The Treasury said in its 2009 Budget Review, released on Wednesday, that the guarantees were in addition to a 60 billion rand, three-year direct loan to the company announced last year.

Eskom [ESCJ.UL], which is battling to meet growing demand, plans to spend 343 billion rand over five years to boost capacity but a global credit crisis had raised borrowing costs making it different for the company to raise finance.

Critics say years of under-investment in power generation and a rise in demand strained supply, leading to the power grid already collapsing in January last year.

The company has called for demand cuts, particularly from mines and industry, and has requested tariff increases to help meet planned spending.

The Treasury said it would guarantee existing bonds, the ES26 maturing in 2026, and the ES33 bond maturing in 2033, as well as floating rate notes maturing in 2026 and 2033.

The remainder of the guarantees would support the issuance of new local and international debt.

"If required, government would either repay the debt in its entirety or step into the shoes of Eskom and continue to make payments on Eskom's behalf," it added in a statement.

An annual limit, depending on cash flow requirements, would be set on the debt that the company could issue each year under the guarantees.

The Treasury also said it would consider guarantees for other state-owned companies, on merit.

"As the economic outlook and stability of these enterprises improves government will reduce its contingent liability exposure by issuing fewer guarantees and refinancing debt without such guarantees," it said.

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Sunday, February 8, 2009

South Africa - Economy

The global financial crisis is hurting South Africa's economy and the government needs to take steps to reduce job losses, the president said Friday in his first state-of-the-nation address.

In his speech to parliament, Kgalema Motlanthe said demand for South African exports has declined and production has dropped, causing some companies to lay off workers.

"The global economic meltdown does pose serious dangers for our economy in terms of job losses and the quality of life of our people," he said. "We have been forced to tone down our forecasts in terms of growth and job-creation."

The South African economy is only expected to grow at a rate of about 3 percent in 2009 after seeing increases of about 5 percent annually in the past three years.

Unemployment stands at more than 20 percent and some experts have estimated that 250,000 jobs are at risk. A number of mining and car companies have indicated that they will lay off staff.

Motlanthe said the government was looking at ways to minimize the impact of the crisis such as increasing its public investment projects and public sector employment programs.

He appealed to the private sector to find ways to counter the decline in investments and avoid shutting down factories.

"Alternatives to layoffs will be explored, including longer holidays, extended training, short time and job-sharing," he said.

Finance Minister Trevor Manuel is expected to elaborate on government's response to the financial crisis when he presents his budget on Wednesday.

Motlanthe, who is also chair of the regional Southern African Development Community, said he welcomed the positive steps taken by neighboring Zimbabwe to form a unity government.

"Now the work of reconstruction can start in earnest; and South Africa stands ready to assist wherever we can," he said.

Motlanthe, 59, is the third president of South Africa since the end of white rule in 1994.

A mild-mannered former freedom fighter, he was installed in September after former President Thabo Mbeki was forced to quit by the governing African National Congress in an internal power struggle.

However, Motlanthe is widely seen as a caretaker president until elections when ANC leader Jacob Zuma is expected to take over the position. Motlanthe is expected to announce a date next week for the elections, which have to take place by July.

Motlanthe has had to regroup the government after a mass walkout in solidarity with Mbeki.

In his speech Friday, Motlanthe said South Africa had weathered the political storm and that as the country heads into its fourth multiracial vote, it is "worlds apart from the divisions, conflicts and exclusion of a mere 15 years ago."

Motlanthe said there had been much change in South Africa since 1994 with millions of black people benefiting from better housing, education and health systems.

"But let us not delude ourselves: Such transformation is still at its nascent stages. We still have a long way to go," he said.

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