Categories
Environment Science & technology

[1087] Of Malaysian frankenfish

In the NST today:

KOTA KINABALU: A hybrid species of grouper, or “sak pan” in Chinese, has been developed, which will have great commercial value and help to bring the seafood industry closer to its target for the future.

The new species is a cross between the giant grouper (Epinephelus lanceolatus) and the tiger grouper (Epine-phelus fuscoguttatus), both of which are high-value species in great consumer demand.

The fishes:

Copyrights by NST. Fair use.

The notion that we could manipulate the blueprint of life without understanding how the environment could be affected is little bit scary for me. There are environmentalists that call these kind of things as frankenfish, with the obvious reference to Frankenstein. Despite that, I still have not formed an opinion on genetically modified food. Nevertheless, I am very skeptical of a statement in the article:

BMIT director Prof Dr Saleem Mustafa said the new species will relieve the pressure on the wild grouper due to overfishing and other illegal fishing methods.

Is the good professor telling us that the new genetically superior grouper species will not compete with the existing ones? It is all too possible that instead of relieving pressure on wild, naturally occurring grouper population, the opposite scenario would occur.

The frankenfish issue has been debated in the US for several years now. In Malaysia, I have yet to hear a debate on it. Given how Malaysia is supposedly giving a stress on biotechnology, it is odd how the debate has not quite broken through the public sphere yet.

Categories
Economics Environment

[1086] Of water shortage, ineffective threat and effective policy

I cannot help but let go a huge sigh when I read a headline entitled “Conserve or face rationing, public told” in The Star on February 8:

PETALING JAYA: Malaysians have been told to start conserving water now or brace themselves for water rationing if the expected hot and dry weather hits the country next month.

Selangor water concessionaire Syarikat Bekalan Air Selangor (Syabas) has sounded out to the state government that rationing was among the steps that would have to be taken if the situation takes a turn for the worse.

Right. Like people are going to listen; I doubt such warning could encourage people to conserve.

When I heard rationing as a possible solution, I rolled my eyes.

I have offered a better plan to survive water shortage, be it caused by El Niño or simple drought, long ago — prices should reflect water scarcity and be allowed to float according to water quantity. In short, with the anticipated water shortage, price must go up throughout the duration of the shortage. In a free market with no state intervention, price would have gone up by now, signally the possibility of shortage.

People will only conserve if something hits them in the head. A mere warning does not cut it but a price increase will do the trick.

I do not know about you but I prefer to pay more rather than not have water at all. Further, rationing is such a drag. Besides, for goodness’ sake, we are living in the 21st century and we are not in a war or something.

Categories
Economics

[1085] Of the US is no match for the NEP

Under pressure to secure a free trade deal with Malaysia, the US is bowing to Malaysian demands:

MALAYSIA and the US have agreed to take contentious issues “off the table” in their ongoing (free trade agreement) FTA negotiations, International Trade and Industry Minister Datuk Seri Rafidah Aziz said.

What are those contentious issues?

“On areas like government procurement, New Economic Policy and our policies on restructuring, it is no go and they understand that.

I have blogged earlier on how Malaysia has time as a leverage. I do think Malaysia is utilizing that leverage to the fullest. Standing on higher ground while the US negotiators are running out of time, I could imagine Malaysia dictating the terms in a room somewhere in Sabah.

Nevertheless, I wish both sides would be more transparent and forthcoming to public questions. While I have an idea what the US is looking for, I could only speculate what Malaysia is demanding from the US without a way to verify it.

Even in the report, the US list is clear:

The Karambunai discussions had included elimination of tariffs, equity conditions in education and telecommunications and distributive trade.

The Malaysian list, on the other hand:

Rafidah said Malaysia made requests to the US in terms of market opening which would benefit the private sector.

It is so vague that it could mean anything under the sun.

Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved Mohd Hafiz Noor Shams. Some rights reserved

p/s — perhaps, I have underestimated the leverage Malaysia has. On Saturday, February 10 at The Star:

KOTA KINABALU: The March deadline is likely to pass without Malaysia and the United States striking a deal for a Free Trade Agreement (FTA).

US Assistant Trade Representative Barbara Weisel said it would be “very difficult” to conclude the talks within the deadline that the United States had set.

I hope we could get the FTA signed before it is too late. It is going to be tough to get an FTA after the expiry of Trade Promotion Authority because the Democrats are expressing economic nationalism stance.

Categories
Economics Environment Politics & government

[1084] Of new direction in climate change debate

The debate on whether the current climate change is caused by human activities has effectively ended with the publication of the IPCC Fourth Assessment Report in Paris earlier last Friday. The announcement by the most authoritative body on the science of climate change were preceded by calls of several large corporate players for a system to regulate carbon emissions, Exxon Mobil’s new stance on climate change and the 2007 State of the Union which expressed concern on climate change. Even several months or years before the publication of the latest Assessment Report, the momentum towards acceptance of human-induced climate change has been growing. ASEAN recently has agreed to a weak energy pact that perhaps gives lip service to climate change.

While the debate is over, whether or not the greens had unilateral declared such closure, a new debate has arisen and rightly, it is on how to move from here onwards. Even the once-skeptics have realigned their positions to accept the modern reality of climate change. Though their positions might not be aligned with the greens, the realization that the current climate change is caused by human beings is central.

There seems to be three schools of thought at the moment. One favors mitigation of the effects of climate change. Two, adaptation. Three, centrist.

Those that favor mitigation are advocating the most controversial policy of all — emissions reduction. Within this camp itself, there are many suggested ways to limit carbon but that most popular is emissions trading. Digressing, it is a sign that the market could solve environmental problems. Regardless, the politically charged question is how high should the limit be? How much cut should an economy make or take?

The Kyoto Protocol, the most famous of all emissions cutting schemes, demands Annex 1 (a dull jargon to roughly describe industrialized countries) parties to cut their collective greenhouse gases (there are six gases governed by the Kyoto Protocol, including carbon dioxide) emissions by 5% below the 1990 level within 2008 and 2012. There are a few ways to achieve that target: through Clean Development Mechanism, Annex 1 members could reduce their emissions commitment by aiding the others to undergo clean development like the introduction of clean energy or reforestation. The CDM by itself is a huge growing industry as it becomes clear that many Annex 1 members are having trouble adhere to Kyoto’s target. There are those that have suggested an even drastic cut while others, more modest. But Kyoto is the the benchmark.

An economist, William Nordhous garners influence among emissions cutting scheme. I came upon his work while I was attending an environmental economics class at Michigan. That class and Nordhous’ work helped me understand the economic rationale of mitigation policies. Nicholas Stern is another economist that is involved in the economic of climate change though his report has been criticized.

And then, of course, the question of who should bare the cut?

Previously, it was a question of why should be bear anything at all. So, as far as the greens are concerned, it is a step forward in the right direction.

The Bush administration has consistently reasoned that emission reduction measures are useless if the developing world does not share the burden of emissions reduction. While true, the developing world on the other hand argues that the majority of the emissions in the air were those produced by the developed world, which is also valid. It is because both have valid arguments and because of externality, this is an explosive political issue.

Those that favor adaptation are the ones whom believe adaptation is cheaper than mitigation. Adaptation includes realignment of economies according to the new prevailing climate pattern. For instance, migrating agricultural activities northward as it gets warming there.

And then, there are centrists that push for both.

In reality, adaptation is essential as a response. No. adaptation is inevitable. Therefore, the bigger question is should we try to mitigate the effect at all?

For me, effective policies will need to commit to mitigation actions while accepting the eventuality of adaptation policies.

For former climate change deniers which have accepted the cause of the current climate change but are reluctant to shoulder the undeniably huge burden, they scoff at mitigation effort and are content that we should simply adapt to whatever the climate brings us.

There is a subgroup that believes climate change is just one of many issues we as humanity have to face. To the group, led by Bjorn Lomborg, the author of The Skeptical Environmentalist, resources are better spent at other issues like poverty or disease fighting. Their point is, there is a trade-off.

And then, there are some that believe it is too late to act and thus, mitigation is the only way forward.

Regardless the positions, none of the new directions in the debates are based on denial of the human-induced climate change. And certainly, those that deny climate change is actually happening are currently practically unheard of, unlike, roughly, a decade ago.

More importantly, while the debate on causality is over, the larger debate has not. The larger debate is undergoing an evolution, moving from one stage to the next. The debate on climate change is more than alive and it will not be over any time soon.

In Malaysia however, while people are moving on to the next level, we are at the back, just about to join the departing crowd.

Categories
Economics Politics & government

[1083] Of passing the buck too quickly

Earlier at BBC News, I read on how President Bush is planning to reduce the US budget deficit:

US President George W Bush has said his forthcoming budget plans will seek to curb domestic spending.

“Cutting the deficit during a time of war requires us to restrain spending in other areas,” Mr Bush said in his weekly radio address.

He said his plans for the next fiscal year would show that his aim of erasing the deficit by 2012 could be achieved without giving up tax cuts.

I beginning to notice the in trend right now. Reduce fossil fuel consumption, reduce carbon emission, reduce budget deficit, etc, etc, after he steps down as the President.

I realize that there are issues that demand attention that spans several generations. Nevertheless, I cannot help but wonder if that is the case or it is simply Bush passing the buck.

Regardless, I think President Bush is trying to cut the wrong corners:

Mr Bush said the budget for the year starting in October 2007 would underline the need to tighten spending on domestic programmes – including on education, energy and health.

The Washington Post newspaper said domestic spending would increase by 1% – less than inflation.

Meanwhile military spending in Iraq and Afghanistan would increase.

Certain areas, especially education, are too critical to see spending tightening. At time when globalization is at nearly full steam, I do not think anybody could afford to cut spending on education. Not Malaysia. Not Egypt. Not the Netherlands. Not the United States.

If I were Bush, I would slow down on the military spending instead. The first step in reducing military spending is to avoid too many military conflicts.

Some might call this a gun and butter model. Maybe it is, to some extent.