Taiwan lab develops panda robot

The world's first panda robot is taking shape at a cutting-edge lab in Taiwan where an ambitious group of scientists hope to add new dimensions to the island's reputation as a high-tech power. The Centre for Intelligent Robots Research aims to develop pandas that are friendlier and more artistically endowed than their endangered real-life counterparts.

"The panda robot will be very cute and more attracted to humans. Maybe the panda robot can be made to sing a panda song," said Jerry Lin, the centre's 52-year-old director. Day by day, the panda evolves on the centre's computer screens and, if funding permits, the robot will take its first steps by the end of the year.

"It's the first time we try to construct a quadrupedal robot. We need to consider the balance problem," said 28-year-old Jo Po-chia, a doctoral student who is in charge of the robot's design. The robo-panda is just one of many projects on the drawing board at the centre, which is attached to the National Taiwan University of Science and Technology, the island's version of Massachusetts Institute of Technology.

The Taipei-based centre also aims to build robots that look like popular singers, so exact replicas of world stars can perform in the comfort of their fans' homes. "It could be a Madonna robot. It will be a completely different experience from just listening to audio," said Lin.

Commercial value is what counts for Lin, who hopes to contribute to the Taiwan economy at a time when it has matured and no longer exhibits the stellar growth of the earlier take-off phase. "If I write 25 academic papers, I won't contribute anything. But if I create something people need, I will contribute to the Taiwan economy," he said. Lin and his team are also working on educational robots that can act as private tutors for children, teaching them vocabulary or telling them stories in foreign languages.

There is an obvious target market: China, with its tens of millions of middle-class parents doting on the one child they are allowed under strict population policies. "Asian parents are prepared to spend a lot of money to teach their children languages," said Lin.

Robots running amok are a fixture of popular literature but parents do not have to worry about leaving their children home alone with their artificial teachers, he said. "A robot may hit you like a car or a motorbike might hit you. But it won't suddenly lose control and get violent. Humans lose control, not robots. It's not like that."

Lin's long-term dream is to create a fully-functioning Robot Theatre of Taiwan, with an ensemble of life-like robots able to sing, dance and entertain. Two robotic pioneers, Thomas and Janet, appeared before an audience in Taiwan in December, performing scenes from the Phantom of the Opera, but that was just the beginning, Lin said.

"You can imagine a robot shooting down balloons, like in the wild west, using two revolvers, or three, but much faster than a person. Some things robots can do better than humans with the aid of technologies," Lin said.

His vision is to turn the show into an otherworldly experience where robots and humans mix seamlessly on stage, leaving the audience in doubt which is which. But the bottomline is the bottomline. Lin wants commercial viability, in the interest of his home island.

"I want to be able to go to an amusement park in the US and see a building where on top it says, 'Robot Theatre from Taiwan'. That's my lifetime goal," he said.

Related Articles:

http://globalitnews.blogspot.com/2009/05/robot-takes-over-tokyo-classroom.html

Source:

http://nz.news.yahoo.com/a/-/technology/6077266/taiwan-lab-develops-panda-robot/

Tags:

China, Taipei, Robot panda, Robot Theatre of Taiwan, National Taiwan University of Science and Technology, Global IT News, The Centre for Intelligent Robots Research,

Posted via email from Global Business News

IKEA is as Bad as Wal-Mart

My mother still owns, and uses, the same vacuum cleaner she bought early in her marriage, just after World War II. She still lives in the house my father -- not a carpenter by trade, but an electrician -- built in the early 1950s with the help of his brothers, a small but sturdy Cape Cod-style dwelling with hardwood floors and solid wood doors that close with a hearty, satisfying clunk (as opposed to the echoey click of hollow-core doors).

Today the idea of anything -- a household appliance, a piece of furniture, a house -- being built to last is almost laughable. When your vacuum cleaner stops sucking, you most likely haul it out to the curb and trek to Target or a big-box home-goods store to replace it. Even if you could readily find someone to repair it, the trouble and the cost would be prohibitive. If you need a bookcase, there's always IKEA: Sure, you'd prefer to buy a sturdily built hardwood version that doesn't buckle under the weight of actual books, but who has extra dough to spend on stuff like that? The IKEA bookcase is good enough, for now if not forever.

That cycle of consumption seems harmless enough, particularly since we live in a country where there are plenty of cheap goods to go around. But in her lively and terrifying book "Cheap: The High Cost of Discount Culture," Ellen Ruppel Shell pulls back the shimmery, seductive curtain of low-priced goods to reveal their insidious hidden costs. Those all-you-can-eat Red Lobster shrimps may very well have come from massive shrimp-farming spreads in Thailand, where they've been plumped up with antibiotics and possibly tended by maltreated migrant workers from Burma, Cambodia and Vietnam. The made-in-China toy train you bought your kid a few Christmases ago may have been sprayed with lead paint -- and the spraying itself may have been done by a child laborer, without the benefit of a protective mask.

"Cheap" is hardly a finger-waggling book. This isn't a screed designed to make us feel guilty for unknowingly benefiting from the hardships of workers in other parts of the world. And Shell -- who writes regularly for the Atlantic -- isn't talking about the shallowness of consumerism here; she makes it clear that she, like most of us, enjoys the hunt for a good deal. "Cheap" really is about us, meaning not just Americans, but citizens of the world, and about what we stand to lose in a global economic environment that threatens the very nature of meaningful work, work we can take pride in and build a career on -- or even at which we can just make a living.

Discount chains pretend to be the most democratic of enterprises, willing and able to fill our every need at a price we can afford: Ingenious slogans like "Design for All" (Target) and "Save money. Live Better" (Wal-Mart) make that point pretty well. Shell asserts that an excess of cheap goods -- and the drive to make and sell them ever more cheaply -- is putting a deadly squeeze on workers worldwide. Most liberal-leaning citizens are aware of the profit-making schemes of Wal-Mart and, even if we actually shop there, find them distasteful (although Shell notes that among economists, the chain has its defenders).

But Shell asserts that even outlet malls and seemingly benign, friendly, progressive stores like IKEA are part of the problem; along with more obvious bad guys like Wal-Mart, they perpetuate a cycle that, far from nurturing creativity and innovation in the marketplace, ultimately benefits a relative few at the very top of the economic chain. Shell notes that before retiring in February 2009, "Wal-Mart CEO Lee Scott Jr. took home in his biweekly paycheck what his average employee earned in a lifetime." You might say that, for Scott, the good news is that everybody can afford to shop at Wal-Mart; the better news is that he himself doesn't have to.

Shell begins by outlining the history of mass production in America (perhaps not surprisingly, firearms were among the first items to be mass-produced) and the rise of the discount chain. In the late 1800s a sickly farmer's son named Frank W. Woolworth opened the first "five-and-dime"; later, foreshadowing a future that workers around the world now seem doomed to live out, he quipped, "We must have cheap labor or we cannot sell cheap goods. When a clerk gets so good she can earn better wages elsewhere, let her go."

The understanding is that she'll have somewhere else to go, where her skills and talents are wanted or needed, considered something worth paying for. But increasingly in our current work climate, more skills only make a worker more expensive and possibly more demanding, not more desirable. With meticulousness and daring, Shell approaches this problem and the myriad thorny issues twined around it, incorporating the research and views of an assortment of economists, political scientists and law professors to build her case. At the core of her argument is the idea that the wealth of cheap goods available to us doesn't make our lives better; instead, it fosters an environment that endangers not just the jobs of American workers but the idea of human labor, period.

It's impossible to grapple with the global economy without addressing the tricky subject of China, and Shell does so with the right amount of clear-eyed empathy. She notes that China as a nation has grown wealthier while its poor have become poorer. According to figures released by the World Bank, between 2001 and 2003 the income of the poorest 10 percent of China's 1.3 billion people had fallen by 2.4 percent, to less than $83 per year. In that same period, the country's economy grew by 10 percent, and its richest people became 16 percent richer.

Many of China's poor work in factories, earning ever-shrinking pay under inhospitable or dangerous conditions, as the American conglomerates who do business there press the Chinese government to revise or reverse regulations that might make these laborers' work lives more tolerable. The government, understandably eager for China to take its place at the global-commerce table, is all too eager to comply. A Shanghai journalist makes a piercing comment to Shell: "We do not yet have the luxury to concern ourselves too much with things like human rights."

But Shell is careful to point out that China isn't the source of the "cheap goods" problem. She quotes Mark Barenberg, a professor of law at Columbia University and an expert on international labor law: "The severe exploitation of China's factory workers and the contraction of the American middle class are two sides of the same coin." The idea is that when global corporations squeeze labor in China and other developing nations, they're able to use the threat of low-wage competition to, as Shell puts it, "roll back decades of hard-won gains in wages, benefits, and dignified treatment for workers in the United States." In other words, employers in the United States can easily use the threat of downsizing and outsourcing to gain more power over, and squeeze more juice out of, their employees -- who, in turn, enjoy increasingly less protection from unions.

While the Chinese are hardly the villains of Shell's story, certain Swedes have plenty to answer for: Shell's chapter on IKEA is the most gently damning in the book. Shell is quick to admit that IKEA products -- from bookshelves to tables to lamps -- are very nicely designed. And the ingenuity of designing furniture so that it can be shipped efficiently, compactly and cheaply, with an eye toward environmental concerns, is admirable. But Shell also points out the hypocrisy inherent in IKEA's philosophy.

As a clever IKEA commercial, directed by Spike Jonze, points out, an old lamp (or bookcase or table) doesn't have feelings; any piece of furniture can and should be replaced at any time. The ad, and the whole IKEA approach, suggests that objects have no lasting meaning or value. They're disposable; when we tire of them, we should just throw them out. Then why, Shell asks, does IKEA personify its products by naming them, à la the Lack coffee table or the Kura loft bed? "If IKEA thinks it's crazy to care deeply about objects, why," she asks, "does it sell a wok named after a girl?"

IKEA makes money, and lots of it, by passing on to the consumer the cost of assembling its products, thus turning the consumer into part of its workforce: Depending on how you look at it, we either save money by putting IKEA furniture together ourselves, or we pay for the privilege of putting IKEA furniture together ourselves.

Regardless, these tables and bookcases aren't, and aren't intended to be, heirloom pieces. But Shell wonders if our expectations are too low. We no longer expect craftsmanship in everyday objects; maybe we don't feel we even deserve it. "Objects can be designed to low price," she writes, "but they cannot be crafted to low price." But if we stop valuing -- and buying -- craftsmanship, the very idea of making something with care and expertise is destined to die, and something of us as human beings will die along with it: "A bricklayer or carpenter or teacher, a musician or salesperson, a writer of computer code -- any and all can be craftsmen.

Craftsmanship cements a relationship between buyer and seller, worker and employer, and expects something of both. It is about caring about the work and its application. It is what distinguishes the work of humans from the work of machines, and it is everything that IKEA and other discounters are not."

What's more, IKEA is the third-largest consumer of wood in the world and uses timber that comes mostly from Eastern Europe and the Russian Far East, where, Shell points out, "wages are low, large wooded regions remote, and according to the World Bank, half of all logging is illegal." IKEA president and CEO Anders Dahlvig asserts that the timber his company uses is harvested legally, and the company does employ forestry experts to monitor the company's suppliers. But Shell points out that IKEA has only 11 forestry monitors, not nearly enough to keep a watchful eye on all those suppliers worldwide, and five of those specialists are devoted to China and Russia, a vast spread of territory by itself. Dahlvig says that hiring more inspectors would cost too much; he'd have to pass the cost on to the consumer.

Would enlightened consumers pay a little more, maybe, to buy products made from wood that had been, unquestionably, legally harvested? Maybe -- but it's not the consumer's choice to make, at least not right now. And if there's one thing that makes reading this eye-opening book an ultimately frustrating experience, it's that Shell can't offer many helpful solutions to this tangle of economic and moral problems, aside from urging us to be more aware as consumers.

Still, she does cite one example of an organization that at least tries to get it right: Wegmans, a chain of supermarkets with stores located mostly in the suburbs of New York state, Pennsylvania, New Jersey, Virginia and Maryland, offers its employees job-training programs, health insurance and retirement benefits. The company operates on the supposition that if it treats its employees respectfully, they'll be better prepared (and more willing) to serve the needs of customers. The approach seems to work: Wegmans profits financially by fostering and retaining customer loyalty, and its employee turnover rate is low -- roughly 6 percent, measured against an industry-wide rate of more than 30 percent. The company also buys a large percentage of its produce from small, local farmers, and has been doing so for 20 years.

If "Cheap" is a harrowing document of the pursuit of profit at the expense of our basic humanity, the example set by Wegmans -- Shell saves it for the end of the book -- sounds almost too good to be true, the kind of crazy business idea that, according to the logic of outfits like Wal-Mart, shouldn't work. In reality, it's one of the foundations of good business: Treat your employees well, and they'll serve you well in return. The cost may be higher, but the price is right.

Related Articles:

http://globalbestpractice.blogspot.com/2009/07/green-power-takes-root-in-chinese.html

http://globalbestpractice.blogspot.com/2009/05/web-that-speaks-your-language.html

http://globalbestpractice.blogspot.com/2009/07/pervasive-nature-of-corruption.html

Source: http://www.salon.com/books/review/2009/07/12/cheap/index.html?source=rss

Tags: IKEA, Walmart, China, Cheap labor, low-cost producer, Outsourced manufacturing, World Bank, Columbia University, Russian forests and timber, Global Economic News, Global Development News, Salon,

Posted via email from Global Business News

G8 Reaches Seminal Climate Change Agreement

Climate change and trade figure prominently on this second day of the G8 summit in L'Aquila, Italy as leaders of the world's most powerful economies expand talks to take in counterparts and representatives of major emerging economies. Summit host, Italian Prime Minister Silvio Berlusconi welcomed world leaders for a second day of discussions in L'Aquila.

The agenda items are much the same - the global economic crisis, the environment, climate change and trade. But, Thursday's talks were expanded from the G8 group to include the so-called G5 nations of major emerging economies - China, India, Brazil, South Africa and Mexico. But others were invited to the table as well, along with international organizations.

On climate change, G8 leaders agreed Wednesday on new targets to limit greenhouse gas emissions and try to limit global warming to just two degrees centigrade above pre-industrial levels. In announcing that decision, Prime Minister Berlusconi spoke of the need to bring other countries into the process, especially India, China and Brazil. It would be counterproductive, Mr. Berlusconi said, if the United States, Europe, Canada and Japan implement strategies to cut emissions if other countries do not.

G8 leaders have said the group wants to be inclusive and bring other nations into discussions on global issues. The move is also widely seen as an increasing understanding that while G8 members may be the world's most powerful nations, they cannot solve issues such as the global economic crisis or climate change without the help of others.

Source: http://www.voanews.com/english/2009-07-09-voa6.cfm

Tags: Silvio Berlusconi, G8, G5, Climate change agreement, China, India, Brazil, South Africa , Mexico, L’Aquila, United States, Europe, Canada, Japan, Global Development News, Greenhouse gas limit targets, 2 degrees Celsius above pre-industrial temperatures,

Posted via email from Global Business News

Green Power Takes Root In The Chinese Desert

DUNHUANG, China — As the United States takes its first steps toward mandating that power companies generate more electricity from renewable sources, China already has a similar requirement and is investing billions to remake itself into a green energy superpower.

Through a combination of carrots and sticks, Beijing is starting to change how this country generates energy. Although coal remains the biggest energy source and is almost certain to stay that way, the rise of renewable energy, especially wind power, is helping to slow China’s steep growth in emissions of global warming gases.

While the House of Representatives approved a requirement last week that American utilities generate more of their power from renewable sources of energy, and the Senate will consider similar proposals over the summer, China imposed such a requirement almost two years ago.

This year China is on track to pass the United States as the world’s largest market for wind turbines — after doubling wind power capacity in each of the last four years. State-owned power companies are competing to see which can build solar plants fastest, though these projects are much smaller than the wind projects. And other green energy projects, like burning farm waste to generate electricity, are sprouting up.

This oasis town deep in the Gobi Desert along the famed Silk Road and the surrounding wilderness of beige sand dunes and vast gravel wastelands has become a center of China’s drive to lead the world in wind and solar energy.

A series of projects is under construction on the nearly lifeless plateau to the southeast of Dunhuang, including one of six immense wind power projects now being built around China, each with the capacity of more than 16 large coal-fired power plants.

Each of the six projects “totally dwarfs anything else, anywhere else in the world,” said Steve Sawyer, the secretary general of the Global Wind Energy Council, an industry group in Brussels.

Some top Chinese regulators even worry that Beijing’s mandates are pushing companies too far too fast. The companies may be deliberately underbidding for the right to build new projects and then planning to go back to the government later and demand compensation once the projects lose money.

“The problem is we have so many stupid enterprises,” said Li Junfeng, who is the deputy director general for energy research at China’s top economic planning agency and the secretary general of the government-run Renewable Energy Industries Association.

HSBC predicts that China will invest more money in renewable energy and nuclear power between now and 2020 than in coal-fired and oil-fired electricity. That does not mean that China will become a green giant overnight. For one thing, Chinese power consumption is expected to rise steadily over the next decade as 720 million rural Chinese begin acquiring the air-conditioners and other power-hungry amenities already common among China’s 606 million city dwellers.

As recently as the start of last year, the Chinese government’s target was to have 5,000 megawatts of wind power installed by the end of next year, or the equivalent of eight big coal-fired power plants, a tiny proportion of China’s energy usage and a pittance at a time when China was building close to two coal-fired plants a week.

But in March of last year, as power companies began accelerating construction of wind turbines, the government issued a forecast that 10,000 megawatts would actually be installed by the end of next year. And now, just 15 months later, with construction of coal-fired plants having slowed to one a week and still falling, it appears that China will have 30,000 megawatts of wind energy by the end of next year — which was previously the target for 2020, Mr. Li said.

A big impetus was the government’s requirement, issued in September 2007, that large power companies generate at least 3 percent of their electricity by the end of 2010 from renewable sources. The calculation excludes hydroelectric power, which already accounts for 21 percent of Chinese power, and nuclear power, which accounts for 1.1 percent.

Chinese companies must generate 8 percent of their power from renewable sources other than hydroelectric by the end of 2020. The House bill in the United States resembles China’s approach in imposing a renewable energy standard on large electricity providers. But the details make it hard to compare standards. The House bill requires large electricity providers in the United States to derive at least 15 percent of their energy by 2020 from a combination of energy savings and renewable energy — including hydroelectric dams built since 1992.

Chinese power companies are eager to invest in renewable energy not just because of the government’s mandates, but because they are flush with cash and state-owned banks are eager to lend them more money. And there are few regulatory hurdles.

At the same time, the Ministry of Environmental Protection has temporarily banned three of the country’s five main power companies from building more coal-fired power plants, punishment for their failure to comply with environmental regulations at existing coal-fired plants. China’s renewable energy frenzy has been accelerating recently, especially in solar energy.

Last winter, winning bidders for three projects agreed to sell power to the national power grid for about 59 cents a kilowatt hour. But this spring, when the government solicited offers to build and operate the 10-megawatt photovoltaic solar power plant here in Dunhuang, the lowest bid was just 10 cents a kilowatt hour — so low the government rejected it as likely to result in losses for whatever state-owned bank lent money to build it.

The winning bidder was China Guangdong Nuclear Power Company, an entirely state-owned business that bid 16 cents a kilowatt hour. (That was still far below last winter’s price, but a two-thirds drop in raw material costs because of the global financial crisis has started to drive down the cost of solar panels, the chief expense for the winning bidder.)

Zheng Shuangwei, the company’s general manager for northwest China, said that 22 or 23 cents would be more fair. The bid of 16 cents “is not a proper price,” he acknowledged. “It’s a bidding rate that is the result of competition.”

By comparison, the grid buys electricity from coal-fired power plants for 4 to 5 cents a kilowatt hour. Wind turbine rates have dropped to 7 cents from 10 cents over the last couple of years because of fierce competition and declining turbine costs.

The solar project still must go ahead, Mr. Zheng said, because China has limited coal reserves — 41 years at current rates of production — and the potential for hydroelectric power is leveling off as most eligible rivers have already been dammed. But technical obstacles to renewable energy are popping up. Sandstorms in Dunhuang in the spring, for instance, will cover solar panels and render them useless until they are cleaned after each storm by squads of workers using feather brushes to avoid scratching the panels, a process expected to take two days.

And wind turbines are being built faster here than the national grid can erect high-voltage power lines to carry the electricity to cities elsewhere. On the windiest days, only half the power generated can be transmitted, said Min Deqing, a local renewable energy consultant. Nonetheless, city officials are pushing for more projects.

“It’s the Gobi Desert,” said Wang Yu, the vice director of economic planning. “There’s not much other use for it.”

Source: http://www.nytimes.com/2009/07/03/business/energy-environment/03renew.html?partner=rss&emc=rss

Tags: China, wind power, Chinese desert, Global Best Practice, sandstorms, Dunhuang, Gobi desert, Wang Yu, Min Deqing, Silk road, wind turbines, Beijing, Global Wind Energy Council, Brussels, HSBC,

Posted via email from Global Business News

US Draws Line With China On Climate Technology

WASHINGTON (AFP) – Access to green technology is becoming a growing stumbling block in global efforts to fight climate change, with US lawmakers bristling at what they see as China's attempt to "steal" US know-how.

China and India have led calls for developed nations to share technology to help them battle global warming as the clock ticks to a December meeting in Copenhagen meant to seal a successor to the Kyoto Protocol. The US House of Representatives this month unanimously voted to make it US policy to prevent the Copenhagen treaty from "weakening" US intellectual property rights on a wind, solar and other eco-friendly technologies.

Congressman Rick Larsen, a member of President Barack Obama's Democratic Party who authored the measure, said the United States was caught between concern both over the climate and its soaring trade deficit with China. "The US can be part of China's solution for the problems that they admittedly have with energy efficiency and emissions. And I think legitimately we want to be part of that solution -- we're the two largest emitters of C02 in the world," Larsen said.

"But we need to couple being part of that solution with making it part of the solution on the trade deficit as well," he said ahead of the measure's approval. Representative Mark Kirk, a Republican who joined Larsen on a recent trip to China, said that climate change was the most contentious issue during talks with Chinese leaders.

Kirk said the Chinese essentially were seeking "the stealing of all intellectual property" related to energy efficiency and climate change. Kirk warned that China's position could change the political dynamics in Washington, where promoters of a bill to force emission cuts say the United States stands to create millions of jobs in a new green economy. "Right now a number of green industries like the climate change bill coming out. But if an international treaty sanctions the theft of their intellectual property, then there will be hardly any green jobs built in the United States," Kirk said.

The United States is the only major industrialized nation to reject the Kyoto Protocol, with former president George W. Bush saying it was unfair by making no demands of fast-growing developing nations such as China and India. Despite a recession, President Barack Obama has vowed to work to halt the planet's warming, which UN scientists warn will threaten severe weather and the extinction of plant and animal species later this century if unchecked.

More than 180 countries promised at a December 2007 meeting in Bali, Indonesia to take part in the next global treaty with a "common but differentiated responsibility" for developed and developing economies. But 12 days of talks this month in Bonn came up with no visible progress, with top Chinese negotiator Li Gao accusing rich nations of reneging on sharing technology and watering down commitments to cut emissions.

"There is an attempt to obliterate the principle of 'common but differentiated responsibility' and to split up the developing countries," Li told China's state Xinhua news agency.

Shyam Saran, India's envoy on climate change, also criticized rich nations, which he said bore the historic responsibility for climate change. India has proposed setting up global "innovation centers" to work on green technology.

A report last month by experts for the UN climate body called for a "balanced" approach, stressing the importance of intellectual property rights but saying all nations needed to accept the terms.

Technology transfer "is certainly a big and important question that might be a roadblock" in global negotiations, said Daniel Kessler of Greenpeace.

The environmental group has called for public and private funds on climate change to be pooled into an independent global body, funded to the tune of at least 140 billion dollars a year. But such funding may prove hard to come by. The European Union, champion of the Kyoto Protocol, has come under fire from environmentalists for declining to put a figure on climate aid, saying it is waiting to see other nations' proposals.

Source: http://news.yahoo.com/s/afp/20090623/bs_afp/uschinaclimatewarmingtechnology_20090623022226

Tags: China, USA, Obama, Kyoto Protocol, EU, Greenpeace, Xinhua, Li Gao, Daniel Kessler, Shyam Saran, Global Development News, US House of Representatives, Copenhagen, Bali, Mark Kirk, Rick Larsen, Intellectual Property, Global Best Practice,

Posted via email from Global Business News

World Bank Cuts 2009 Global Growth Forecast

The World Bank has cut its 2009 global growth forecast, saying the world economy will shrink by 2.9 percent and warning that a drop in investment in developing countries will increase poverty.

"The global recession has deepened," the Washington-based multilateral lender said in a report.

Global trade is expected to plunge by 9.7 percent this year, while total gross domestic product for high-income countries contracts by 4.2 percent, the bank said. It said economic growth in developing countries should slow to 1.2 percent — but excluding relatively strong China and India, developing economies will contract by 1.6 percent.

The bank's latest forecast is a sharp reduction from its March prediction of a 1.7 percent global contraction, which it said then would be the worst on record. Economic damage to developing countries "has been much deeper and broader than previous crises," warned the report, issued Sunday in Washington.

"Unemployment is on the rise, and poverty is set to increase in developing economies," it said. The global economy should start to grow again in late 2009, but "the expected recovery is projected to be much less vigorous than normal," the report said. It said banks' ability to finance investment and consumer spending would be hampered by the overhang of unpaid loans and devalued assets.

"To break the cycle and revive lending and growth, bold policy measures, along with substantial international coordination, are needed," the World Bank said. Investment and other financial flows to developing countries plunged by an estimated 39 percent in 2008 to $707 billion, the World Bank said. It said foreign direct investment in developing countries is projected to drop by 30 percent this year to $385 billion.

Eastern Europe and Central Asia have been hit hardest and the region's gross domestic product is expected to plunge by 4.7 percent this year, the bank said. It said growth should recover next year to 1.6 percent.

GDP in Latin America and the Caribbean should shrink by 2.3 percent this year before rebounding to expand by 2 percent in 2010, the report said. In the Middle East and North Africa, growth is expected to fall by half this year to 3.1 percent, while that of sub-Saharan Africa will drop to 1 percent from an annual average of 5.7 percent over the past three years, the bank said.

East Asia should post a 5 percent expansion, supported in part by China's stimulus-fueled growth, the bank said.

Source: http://www.mercurynews.com/business/ci_12663954?source=email

Tags: World Bank, GDP, Investment, Credit, China, India, Eastern Europe, Central Asia, Caribbean, North Africa, Global Economic News, Developing Economies, Global Trade, Global recession, Unemployment, Global Development News, Global Blog Network, Economics,

Posted via email from Global Business News

China's Solar Drive

HONG KONG (Reuters) - Beijing's bid to boost the solar energy sector could draw more than $10 billion in private funding for projects and put China on track to become a leading market for solar equipment in the next three years.

Shares of U.S.-listed Chinese solar firms such as Suntech Power Holdings, the world's biggest crystalline solar panel-maker, have risen strongly on expectations China will soon unveil more cash incentives to develop solar energy. China, the world's top greenhouse gas polluter, is trying to catch up in a global race to find alternatives to fossil fuels, blamed for carbon emissions affecting the planet's climate.

Any cash perks for the sector will help drive demand for solar energy systems and create bigger businesses for companies involved in the entire solar supply chain, says Julia Wu, an analyst with research firm New Energy Finance. Top panel-makers including Trina Solar, Yingli Green Energy Holding Co and JA Solar are expected to benefit, while solar wafer-makers such as LDK Solar could gain from related business opportunities.

"China could potentially be the top market for solar. Companies up and down the supply chain should benefit," said Wu. Beijing is considering enhancing cash incentives at a time when European states including Germany, one of the largest solar markets, are pulling back on spending to slow industry growth.

Nearly 10 years of subsidized prices have made Germany among the largest markets for photovoltaic panels, which transform sunlight into electricity, producing solar giants including Q-Cells AG and Conergy. "The photovoltaic industry has very good opportunities in the medium and long term now that a lot of countries have decided to develop new energy as an important measure to combat the economic crisis," Shawn Qu, president and chief executive officer of Canadian Solar Inc, told Reuters.

INCENTIVES

Although China supplies half the world's solar panels, it contributes very little to demand as the cost of tapping solar energy to generate electricity remains steep and investors find little economic sense in pursuing solar projects in China where incentives are few. But that's about to change.

China's government said in March it will offer to pay 20 yuan ($2.90) per watt of solar systems fixed to roofs and which have a capacity of more than 50 kilowatt peak (kwp). The subsidy, which could cover half the cost of installing the system, was popular among developers, attracting applications equivalent to the building of 1 gigawatt of solar power.

One GW, or 1 billion watts, is enough electricity to power a million homes. China is expected to raise its 2020 solar power generation target more than fivefold to at least 10 GW. With incentives, analysts expect over 2 GW in new solar capacity will be installed as early as 2011, up from just over 100 MW in 2008.

To further attract investors, Beijing may align its solar energy policy with an incentive scheme used in Europe and the United States called "feed-in tariff," which guarantees above-market prices for generating solar power. China is widely expected to announce a subsidized price for solar power of 1.09 yuan per kW-hour (kwh), or 16 cents, which is over three times the rate paid for coal-fed electricity in China, but far below the established solar tariffs of about 45 cents in Europe and 30 cents in the United States.

"It would be too low considering the current manufacturing technology," said Fang Zheng, general manager of China Huadian Corporation New Energy Resources Development Co, the renewable energy unit of state-owned Huadian Group. "Such a price would not help the development of the solar power generation industry."

Several Chinese power producers say a fair price for solar power would be 1.5 yuan per Kwh. Without a guaranteed high price, solar firms may find it hard to compete. "In itself (the tariff), it's not enough encouragement for the market," said CLSA analyst Charles Yonts. "Even in the sunniest areas, you're still looking at a negative return or below your cost of capital based on current prices." Yonts estimates a developer would have to bring down costs by 30 percent to $3 a watt for a project to yield a return of as little as 8 percent.

THE WHOLE PACKAGE

Nevertheless, analysts say that taken together, Beijing's proposed tariff and other perks should help generate decent returns given that local labor and equipment costs are cheap."(The tariff) sounds a little light relative to European feed-in tariffs," Steven Chadima, Suntech vice president of external affairs, told a recent conference in the United States.

"But the costs are substantially lower in China and there are also other incentive programs available to package together to be able to create a reasonable electricity price coming off these projects." Moreover, prices of polysilicon are expected to fall further below the current $60 a kilogram amid a glut of the solar panel material, further cushioning costs. Certainly a view that the overall impact of the China incentives will be beneficial to the solar sector appears to be reflected in company share prices -- Suntech shares hit a 7-month high last week.

Source: http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE55I18S20090619

Tags: Solar Power, Photovoltaic, Polysilicon, Solar Subsidies, China, Huadian Group, CLSA analyst Charles Yonts, Global Development News, Canadian Solar Inc, Suntech Power Holdings, Beijing,

Posted via email from Global Business News

N Korea Defiant After New Sanctions

North Korea has warned that it will increase its nuclear activities and could launch military action against the US and allies after the UN Security Council announced new sanctions over last month's atomic test. North Korea's foreign ministry said it will regard any attempts to impose a blockade against it as an "act of war", the state-run KCNA news agency reported on Saturday.

"We'll take firm military action if the United States and its allies try to isolate us," the unnamed foreign ministry spokesman was quoted as saying. The UN resolution, passed on Friday, banned all weapons exports from North Korea and authorised member states to inspect sea, air and land cargo, requiring them to seize and destroy goods that violate the sanctions. The UN resolution was passed as media reports suggested that North Korea could be planning a third nuclear test.

Enrichment Programme

But North Korea remained defiant, pledging to start a uranium enrichment programme for a light-water nuclear reactor. The foreign ministry spokesman also warned that the North would "weaponise all plutonium [in its possession]" and had "reprocessed more than one-third of our spent nuclear fuel rods."

Alexander Neill, the head of the Asia security programme at the Royal United Services Institute for Defence Studies in the UK, told Al Jazeera that while the warning is "bluster", it is also a serious threat. "This [threat of enrichment] is not a new phenomenon," Neill said. "It would take a long time and sophisticated technology to convert plutonium to missile-grade material, but it is a gesture with a lot of teeth behind it. "When it comes to the international reaction, the only option is for the UN Security Council resolution. "It is almost certain that the US and Japan will enforce a blockade which will put a pincer movement around any of the sea trade going in and out of North Korea.

"The question is whether it will have any result inside North Korea. The regime has proved resilient to sanctions in the past," he said. Hillary Clinton, the US secretary of state, said on Saturday: "The North Koreans' continuing provocative actions are deeply regrettable'. "They have now been denounced by everyone, they have become further isolated, and it is not in the interest of the people of North Korea for that kind of isolation to be continued."

'Firm Opposition'

North Korea's nuclear test in May defied a previous Security Council resolution adopted after the North's first underground nuclear test in October 2006. Zhang Yesui, China's UN ambassador, said the resolution showed the "firm opposition" of the international community to North Korea's nuclear ambitions. The backing of China, one of North Korea's key trading partners and regional allies, and Russia for the resolution gave greater weight to the new sanctions as they have been reluctant to act in the past.

"To a certain extent, China has been happy to leave North Korea to its own devices," Al Jazeera's Tony Cheng, reporting from Beijing, said. "Now China is profoundly concerned about the regime in Pyongyang, which seems increasingly unstable and seems increasingly not to follow Beijing's lead." Japan is expected to impose its own sanctions on North Korea, including suspending all trade, in a largely symbolic demonstration of its opposition to the test, the Kyodo news agency reported.

'Tightening Sanctions'

Al Jazeera's Cheng said that it was difficult to judge what effect the new sanctions would have on the already impoverished state. "This is really just tightening sanctions that already exist on North Korea, but they do target it in specific areas," he said.

"I think that one area that will hurt quite a lot will be the ban on conventional weapons arms sales and the possibility of stopping ships going to and from North Korea ... that is a business that could earn Pyongyang as much as $100m." Jamie Metzl, the executive vice-president of the Asia Society, said North Korea had exported arms to about 20 countries in the past, including Iran, Egypt, Pakistan, Myanmar, Zimbabwe and Sudan.

"Their finances are in big trouble. They have almost nothing that anybody else wants to buy but these arms," Metzl said. The UN vote comes amid continuing tensions on the Korean peninsula after North Korea on Thursday demanded a 3,000 per cent increase in rent and a 400 per cent increase in wages for 40,000 workers employed by South Korean companies at an industrial park in the North Korean border town of Kaesong.

North Korean state media issued a statement on Thursday saying that relations between the two countries had reached the "phase of catastrophe" and that the Kaesong complex had been "thrown into a serious crisis".

Source: http://english.aljazeera.net/news/asia-pacific/2009/06/200961361534368421.html

Tags: Kim jong il, Kim jong un, USA, China, Russia, UK, France, UN Security Council, Sanctions, Nucelar reactors, Nuclear Weapons, Global Development News, Hillary Clinton, Kaesong industrial Park, South Korea, Japan, Kyodo,

Posted via email from Global Business News

Security Council Set to Tighten Sanctions on North Korea

UNITED NATIONS — The Security Council’s five permanent members agreed on Wednesday on a draft resolution that would ratchet up sanctions against North Korea by concentrating on its financial transactions and its arms industry, including allowing for inspections of its cargo vessels on the high seas.

The sharply worded resolution, while diluting some of the sanctions sought by the West and Japan, would still serve notice on North Korea that its nuclear and other weapons programs had created sufficient alarm to forge a rare unified front among the world’s major powers.

Written by the United States, the resolution came after more than two weeks of negotiations among the five permanent members — China, Russia, the United States, Britain and France — as well as with Japan and South Korea. It was presented to the full Security Council on Wednesday, and although no timetable for a vote was announced, it could come as early as Friday. Given its supporters, the measure seems assured of passing.

Vitaly I. Churkin, the Russian ambassador, told reporters, “Having sanctions and things like that is not our choice, but a certain political message must be sent, and some measures must be taken, because we are facing a very real situation of proliferation risks.”

North Korea did not react immediately, although its reclusive government has said in the past that ship inspections or other intrusive steps would be considered acts of war. If the resolution is approved, the next hurdle will be ensuring its highly technical provisions are all carried out. Not all resolutions are equally respected by United Nations member states, and, as Ambassador Jorge Urbina of Costa Rica noted, the draft resolution is complex.

The biggest question mark involved China, which has been reluctant to deploy the full weight of its influence on North Korea out of fear of destabilizing it amid a leadership transition. But various analysts suggested that it would not have publicly backed such sanctions unless it was serious about responding to North Korea’s underground nuclear test on May 25.

“They are deeply troubled by North Korean actions,” Jonathan D. Pollack, a professor of Asian and Pacific studies at the Naval War College, said in a telephone interview from Beijing.

The nuclear test followed a series of confrontational actions taken by the North, largely reversing every step it had taken to abandon its nuclear program in recent years.

“It is important for there to be consequences, and this sanctions regime, if passed by the Security Council, will bite and bite in a meaningful way,” said Susan E. Rice, the American ambassador, who shepherded the resolution through the negotiations.

The United States and its allies had wanted the draft resolution to include mandatory cargo inspections, if there was reasonable suspicion that the cargo was weapons-related — something Washington had been seeking outside the United Nations during the Bush years through its Proliferation Security Initiative. But China and Russia balked at mandatory inspections. In a compromise, the resolution requests that states inspect ships on the high seas. If the country where the ship is registered decided to reject an inspection in international waters, then the country would be required to direct the vessel to a nearby harbor for an inspection. If neither happened, the episode would be reported to the Security Council’s sanctions committee. The resolution also suggests that states should cut off “bunkering” services, like refueling, for North Korean vessels.

It is assumed that North Korea would balk at any inspections of its ships, analysts noted, and the resolution does not come under a United Nations provision that would allow the use of force as the ultimate fallback. The sanctions basically fleshed out measures that were first listed in a Security Council resolution passed after North Korea’s first nuclear test in 2006. They were never enacted, because the North agreed to participate in talks to dismantle the program.

The draft resolution condemns the latest North Korean nuclear test, demanding that North Korea conduct no more tests and that it suspend its ballistic missile program and rejoin the Nuclear Nonproliferation Treaty. The theme salted throughout the resolution is choking off anything that might feed the country’s nuclear and weapons programs, including a complete arms embargo, with the exception of small weapons.

Arms generate significant earnings for North Korea, Ms. Rice said, “and we think it important that that source of revenue be entirely curtailed.”

Analysts said the proposed sanctions with the most bite might be the financial ones. They called upon member states to cut off financial services related to the North’s nuclear and weapons programs, to avoid any new grants or loans to the country and to halt other trade support like export credits. Financial transactions for humanitarian or development purposes would be allowed.

William H. Tobey, the former senior Bush administration official for nuclear nonproliferation, who is now at Harvard’s Belfer Center, said that North Korea imported about $3 billion in goods annually, $2 billion of it from China. It exports about $1.5 billion legally, so it needs significant credit to make up the difference. “It would put a significant crimp in their ability to import,” he said of the financial sanctions.

In recent years, efforts to sanction rogue states like Zimbabwe have foundered on the split between Russia and China, on one side, and Western nations on the other. The fact that all five permanent Security Council members agreed on the draft showed how seriously they viewed the gradual global decay in the nuclear nonproliferation treaty — a message aimed not only at North Korea but at other countries suspected of trying to develop nuclear weapons, like Iran.

“They have to get North Korea right, because it has implications for the entire nonproliferation regime,” said Robert C. Orr, the United Nations assistant secretary-general for policy planning.

Source: http://www.nytimes.com/2009/06/11/world/asia/11korea.html?partner=rss&emc=rss

Tags: UN, United Nations, UN Permanent Security Council, China, Russia, USA, Britain, France, Global Economic News, North Korea, South Korea, Japan, Nuclear weapons, Economic Sanctions, Croatia, Costa Rica, Vitaly Churkin, Robert C Orr,

Posted via email from Global Business News

Premier League and NBA Talking Partnership

The English Premier League and the NBA are exploring a marketing and commercial tie-up that would draw on the strengths of the world’s two most popular sports leagues as they expand into new international markets.

 

Representatives from the football and basketball organisations have met in London to discuss how they might work together. They have also compared notes on their respective media rights strategies – particularly in Asia, which is a huge and still largely untapped market for western sport.

 

David Stern NBA commissioner said: “We are unapologetic imitators. The Premier League’s ability to negotiate their [media] deals and the way they split their packages [of media rights] . . . is something we can learn from.”

 

The NBA is in the first year of a $7.4bn, eight-year deal with Walt Disney’s ESPN and ABC networks and Time Warner’s TNT channel. The Premier League, by contrast, recently negotiated a new UK broadcasting deal with British Sky Broadcasting and Setanta worth £1.8bn ($2.8bn) over three years. It is also close to announcing a new international rights deal, with its current contract worth £650m.

 

Although a Chinese consortium is reportedly seeking a stake in the Cleveland Cavaliers, the Premier League has a better hit rate when it comes to attracting international investors. “The Premier League has been a bit ahead of us,” Mr Stern said, pointing to the Russian, American and Middle Eastern investors that have bought into English clubs.

While both sports are commercially lucrative, they are organised very differently. In the NBA, poorly performing teams are given priority when promising new players are “drafted” into the sport. There is no promotion or relegation and each franchise must keep its costs within set budgets.

 

In the Premier League, broadcasting money is also pooled and distributed, but there are far fewer restrictions over how much individual clubs can spend. Critics say this has created an imbalance, with wealthier clubs such as Manchester United and Chelsea able to dominate the league season after season.

 

Mr Stern said: “In boom times an absence of restraints is attractive to investors and risk takers”.

 

Tags: NBA, EPL, David Stern, B Sky B, China, Asian expansion, Russian, Middle Eastern, American, Cleveland Cavaliers, Setanta, marketing, Walt Disney, Broadcast rights, Chelsea, Man U, ABC, Time Warner, TNT,

 

Source: http://www.ft.com/cms/s/0/4269baca-5387-11de-be08-00144feabdc0.html

Posted via email from Global Business News