Sustainable development... the wave for the future... what it is, and how to get there... Sustainable development means providing opportunity for simultaneous and continuous economic, environmental and cultural development over generations.

Saturday, December 27, 2008

U.S. economy — it’s business as unusual - The Hindu

P. Sainath

Things are not as bad as they seem for the U.S. economy. They are worse.
On average, the United States has seen the loss of nearly 14,000 jobs each day since September 1. In 90 days from that date, close to 1.3 million Americans lost their jobs. After weeks of headline-grabbing events on Wall Street, these developments tend to recede into the background. Current estimates suggest that over half a million Americans lost their jobs in November alone. Something not seen in a single month since December 1974.

Things are not as bad as they seem for the U.S. economy. They are worse. As the data flow in, even estimates for earlier months have been revised sharply upwards. The September job loss figure was recorded as 159,000 two months ago. The Bureau of Labour Statistics now says the figure is 403,000. The first figure for October was 240,000 jobs lost. Now it is 320,000. The unemployment rate for teenagers, at 20.4 per cent, is three times the claimed national rate of 6.7 per cent. (This does not include those who have given up looking for work in despair. Nor does it count those working far fewer hours than they need or would like to.) A measure that includes such factors would raise the unemployment rate to 12.5 per cent. Yet, even with this flawed measure, the rate is at its highest in 15 years. There were 10.3 million jobless people in November and that was 3.1 million more workers unemployed than just a year ago. Worse, massive layoffs continue. Even the IT sector has lost thousands of jobs.

There are other icebergs ahead. This is winter, when at least two major sectors — agriculture and construction — do not hire much. Come spring, and there will be different benchmarks to test jobless figures against. There could also be a new round of layoffs (in Retail, for instance) starting January after the last two major holidays — Christmas and New Year — get over. Things might improve if the new administration has massive programmes running by spring that help millions return to work. Circumstances might force this administration to make choices that could in America be denounced as “Leftist.” Not impossible — but on current evidence, tough. Huge job stimulus programmes, even if brought in, would take time to work through. If Barack Obama’s plan to create 3 million jobs over the next two years works, it would still barely recover those that vanished over the previous two.

The Federal Reserve has cut interest rates to between 0 and 0.25 per cent. (Leading one wit to declare that “the Fed is now the only institution truly attempting Islamic Banking.”) It believes the positive results of this will be seen in time. However, this will not solve the credit crunch — the problem of banks fearful or unwilling to lend to those who currently need it. The mortgage and other crises show no major signs of a let-up. Even if all the measures of the Bush and the incoming Obama administration work, it won’t be a return to business as usual. For tens of millions of people, life might never be the same again.

The housing mortgage crisis still burns. Six million people could lose their homes over the next two years. And the credit card crisis, already setting in, could strike sharply in a few months. That hit would encompass far more people than housing would, even if the amounts involved (and impact on the financial markets) are smaller. As Business Week puts it: “Making matters worse, the subprime threat is also greater in credit-card land. Risky borrowers with low credit scores account for roughly 30% of outstanding credit-card debt, compared with 11% of mortgage debt.” This is a country where almost everybody uses credit cards (often several of them).

If job losses continue to mount at their present pace, the card catastrophe will accelerate. Those out of work will not be able to meet their payments. They could also find it hard to purchase essentials and would likely fall deeper into debt. This was a sector already headed for crisis for quite some time. In some estimates, U.S. credit card debt grew from $211 billion in 2002 to $915 billion by the end of 2007. When this house of cards falls, it will spur further the home mortgage mess and the recession already under way. There are those making their housing payments off their credit cards — at huge interest.

Meanwhile, the emphasis right through has been on bailing out the financial giants. (An Institute for Policy Studies report notes that the U.S. and European governments are set to spend 40 times more to rescue financial firms than to fight climate and poverty crises in the developing world.) And yet, daily, new scandals emerge from Wall Street. Both from the banks and other types of operations. The billions paid out as bonuses to executives have not been reversed even when the ‘profits’ for which these bonuses were ‘rewards’ have proved illusory. Merrill Lynch, as the New York Times points out, handed out $5 billion to $6 billion in bonuses in 2006. “But Merrill’s record earnings in 2006 — $7.5 billion — turned out to be a mirage.”

It is only now that the obscene compensation for CEOs and top executives is a matter of — limited — debate. As for the hundreds of billions of dollars given to the banks in the bailout, there is no evidence of this money being used to ease the credit and mortgage crises at the level of the public. Not even a requirement that they make details of their use of the money public — though it is public money they make use of.

Meanwhile, the latest Wall Street scandal snowballing is that of the Bernard L. Madoff Investment Securities. Madoff, a shining beacon of Wall Street enterprise and philanthropy, ran what has been described as “the biggest Ponzi scheme in history.” His own estimate of the fraud is in the region of $50 billion (more than three times India’s farm loan waiver). Huge charities, trusts and individuals, including billionaires, have lost massively in this rip-off. And there’s more to come. Yet again the question how such gigantic rackets thrived in Wall Street without the massive financial media ever noticing leaps up. The Madoff scam is only one among many things unravelling.

However, there is far more passion generated over the obnoxious Governor of Illinois who tried to sell the Senate seat that Mr. Obama vacated — for personal benefit. Governor Blagojevich’s action is neither new to Chicago, nor huge. It is a petty deal by a petty person, reeking of low corruption in high places. The energy it generates, though, is like focussing on the local pick-pocket when grand larceny proceeds next door. Maybe there is a need to hold businessmen to the same standards as elected representatives. Especially those dealing with untold sums of public money?

In this bleak landscape came a surprise at a factory in Chicago. “You got bailed out. We got sold out.” So read the banner at the sit-in strike of the workers of the Republic Windows and Doors factory. Having been robbed of their jobs in a stealthy shutdown, over 200 unionised workers and their families occupied the factory and demanded severance and vacation pay. They got it, too. The action drew national attention. In a sign of changed times, politicians, celebrities, and public figures turned up at the factory to declare support. Even Mr. Obama said he agreed with their demands. The media which, pre-meltdown, would have savaged the strike, were less hostile. “Prior to the economic crisis,” says analyst and columnist Carl Bloice who writes in the Black Commentator, “the police might have gone into the factory and evicted the workers as trespassers.” Post-meltdown, it was a different story. Bloice says the U.S. has not seen such a labour action in decades. Impressively, ordinary citizens went up with food hampers to help out the strikers. Could we be witnessing the start of more militant labour action in the U.S. after decades? And could we be seeing greater sympathy in the country for such actions after decades, as job losses mount?

Tuesday, December 23, 2008

Focus on rural infrastructure - The Hindu

The World Bank’s country assistance strategy (CAS) for India, 2009-2012 comes at a momentous phase. The focus on boosting investments in infrastructure and reducing inequalities is back on the economic agenda both globally and within India. The proposed $14 billion lending programme for the next three years is in line with national priorities, even if it is short of projected requirements. Quite independent of the global economic meltdown, India’s neglect of i ts physical infrastructure has been a malaise demanding radical treatment. This time of economic troubles serves to heighten the sense of urgency. Given the positive linkages between physical infrastructure and equitable growth, the country can ill afford any further neglect of the task of building decent infrastructure. The urgency behind investment in infrastructure is two-fold: its immediate pump-priming effect, and the longer-term importance of sustaining and boosting India’s high growth trajectory.

The infrastructure deficit is a major reason for India’s inability to spread the benefits of growth. For instance, even the 8+ per cent growth does not translate into much for the hundreds of millions of Indians who live below the official poverty line. That 40 per cent of India’s villages are not connected to a road is a shocking expression of India’s infrastructure deficit. Rural infrastructure should be a priority area as it will help narrow the urban-rural divide. One of the objectives of the Eleventh Plan is to construct 130,000 km of new rural roads. The Plan has earmarked nearly 30 per cent of the public investment (Rs.4,35,349 crore) for rural infrastructure development. A strong, focussed push in this area should be central to the country’s larger development plans.UNCTAD has estimated that to support an annual GDP growth of 9 per cent, India would need investment averaging $99 billion a year between 2007 and 2012 in 10 major infrastructure segments. Seen in this wider context, even with the World Bank’s proposed assistance, overall investment will fall short of the country’s infrastructure needs. Whatever the 15th general election may bring in five months, a key challenge for India’s planners will be to evolve strategies to bridge the infrastructure investment gap needed to fast-track development and, to an extent at least, even out growth.

Sunday, December 21, 2008

NEW DEAL NATIONAL RAIL PLAN 2009 - newurbanism.org

http://www.urbandesign.org/newdeal2009.html

It's time for a New Deal for America - building the 21st century green economy to solve our problems and set us up for a prosperous, sustainable futureWe need to embark on a major government project to fix America like President Roosevelt initiated in 1933 and 1935. We need another New Deal that will create millions of jobs and stimulate our economy. But that's not enough. We also need to solve our oil dependence by reducing our car dependence, and we have to address global warming in a big way too. To accomplish all this, we need a new direction - we need all hands on deck! Can we do it? "Yes we can!"Investing in new roads IS NOT the solutionMore roads increase our oil and car dependence. Roads are the problem. We need a complete change of direction in spending on transportation. We have limited time, money, and resources, so we need to get this right by addressing all our problems together with the most comprehensive solutions - as quickly as possible. If we don't enact real, long term sustainable solutions, we will end up back in this same situation a year or two from now when oil prices skyrocket again. We are running out of time and options to permanently solve our problems.Investing in new trains IS the solutionTrain system construction has all the benefits of road construction in creating jobs, but train construction puts into place the solution to all the other problems at the same time. Trains take us away from our oil and car addiction, and move us towards a truely sustainable economy and country.
New high speed rail construction
Creating millions of green jobs
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
China is Building a Massive National Rail System, QuicklyChina is well on its way converting their entire country to sustainable, green transportation. Abandoning their plan to create a car culture rivaling America, China quickly switched to building an extensive train system nationwide. They realized the era of cheap easy oil was over just as they had arrived to the party. China is currently building 5,000 miles of brand new high speed rail comparable to the French TGV (200+ mph), plus 36 brand new, full size metro systems - each to cover an entire city. The new Shanghai metro system will be the largest in the world when complete. This will all be open for business in just a few short years! China's massive, fast track green transportation construction project is unprecedented in the history of the world, and will completely transform China towards sustainability by drastically reducing their need for cars and oil. They have also begun large scale manufacturing of wind turbines to power the trains and green their nation's energy. If China can accomplish all this in such a short time, we can too... Yes we can! Watch video
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
5 SERIOUS PROBLEMS WE MUST SOLVE QUICKLY
1. Failing economy and rising job lossesOur economy is crumbling right before our eyes. Major corporations are going bankrupt or dissappearing one after the other. Job losses are rising every day, and are predicted to get far worse. At the root of our economic problems is the cost of our oil addiction - $700 billion each year for the purchase of oil. This is unsustainable, and is expected to rise dramatically over the next couple of years. The big problem is that our entire economy - especially our transportation system - is built upon cheap and plentiful oil - which is now gone forever. 'Business as usual' is no longer possible.
Our economy in peril
2. Global warming and climate changeThe planet is in peril, and little has been done in America to deal with this crisis. In fact, there have been considerable efforts to delay any real action. Millions of lives are at stake, our cities, our prosperity, and our entire food supply is vulnerable to irreversible damage if we don't act quickly. We face a planetary emergency and we need to act as we would in any emergency with fast action and solutions as big as the problem. Building more roads adds to the problem.
Our cities in peril
3. Peak oil and energy securityAccording to leading experts, world oil supplies have peaked resulting in less oil available for our consumption each year from now on. We need fast action to drastically reduce our oil and car dependence. Many experts say peak oil is more serious than global warming. Our entire economy is dependent on oil, along with 98% of our transportation and 99% of our food supply. Our nation is dangerously vulnerable to the volatile global oil situation, which will only get worse as we move deeper into the era of world peak oil. We need to transition our society away from oil and cars - quickly. We are currently at war trying to secure the last remaining oil reserves, but this war has destroyed our economy and put us deep into debt. We can no longer afford the huge costs of war, both financially and in human lives and suffering. And we certainly can't afford to burn up massive amounts of the remaining scarce oil fighting wars for oil.
Peak oil is a national security threat to our nation
4. Crumbling infrastructureWe have neglected the repair and maintenance of our transportation infrastructure nationwide to the point where bridges are collapsing, roads are falling apart, and our rail systems are unable to function at a reasonable level of service, or meet the rapidly rising demand. The collapsing systems are due to age, poor maintenance, and being overloaded. The collapsed bridge was never designed to carry the loads it was carrying, and thousands more bridges are in the same condition. In 2005, the American Society of Civil Engineers gave the nation's infrastructure a 'D' rating, just above complete failure, and estimated the cost to repair it to a safe level at $1.6 tillion! This doesn't even include expanding the systems to meet the projected growth in demand. It will be far cheaper to build a new national rail system!
Minneapolis bridge collapse, 2007
5. Mobility crisis nationwideOur entire national transportation system is in disrepair and overloaded to a point near paralysis. It's a time-consuming nightmare to get anywhere in America. We waste countless hours of our time and billions of gallons of precious fuel sitting stuck in traffic on our roads and runways. We are spending more money on waste than it would cost to build a new national high speed rail system. We are paying hundreds of billions of dollars for an outdated transportation system that fails to provide reasonable, efficient mobility. Building more roads simply grows the problem, and has proven over and over to create more traffic, and digs us deeper into our oil and car addiction. We clearly need a new direction in transportation policy and funding.
Nationwide transportation paralysis, every day
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ONE SOLUTION FOR 5 PROBLEMS
NEW DEAL NATIONAL RAIL PLAN 2009A new direction! One project can solve all our problems together. Building a new world class rail system across America will address all 5 problems at once, and put us on a course to sustainability and prosperity. This is the fastest, most efficient way to deal with all these huge problems together. Solving 5 big problems with one solution is smart, and a real bargain compared to what it will cost in time and money to solve them individually.

21st century green transportation
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A SAFE, AFFORDABLE, GREEN TRANSPORTATION SYSTEMThis is not new in America - we already had an extensive rail system In 1922, America had more than 44,800 miles of green, electric streetcar rail systems in 80 cities, plus thousands of miles of regional and national rail systems. More than 90% of Americans lived in walkable cities with great train service right outside the door, transporting them everywhere.
Typical early American city with streetcars
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
A new national rail system solves many problems:
Creates millions of green jobs nationwide building the new rail infrastructure and manufacturing the rail cars
Pays for itself by significantly reducing our $700 billion a year oil purchase trade deficit
A major step toward solving global warming by reducing our oil consumption and emissions
Drastically reduces our oil addiction and lowers our risk from the coming peak oil crisis
Lowers our dependence on costly military operations securing oil flow around the world
Lowers our national security risk, and ends wars for oil
Freedom from oil - Powered by clean electricity from renewable energy sources: wind, solar, geothermal, ocean/tidal
Safe, affordable, green transportation for everyone
Saves lives (43,000 Americans die each year in car accidents)
Provides efficient mobility that moves people and goods witout delay and waste
Puts in place a high quality infrastructure setting us up for prosperity, mobility, efficiency, and a sustainable future
It lays the foundation for building walkable, affordable green communities surrounding the train stations
Makes cities more livable, safe, and beautiful by removing cars, traffic, noise, pollution, and parking lots
Trains create walkable, affordable communities
Trains are affordable, safe, clean and green
A nationwide train construction project is neededGreen jobs to build it! Green energy to power it!
THE NEW RAIL PLAN ---------------------------------------------------------------------------------------------------------------------------------------------------------A new safe, affordable, green transportation system for all Americans Build a new world-class national rail system made up of an extensive network of connecting train lines in a 3-tiered, seamless system. The trains would run on clean electricity powered by a combination of wind, solar, geothermal, and ocean/tidal renewable green energy.
A. National high speed rail system This top level train would serve as the national fast system now covered by airplanes and distance car travel. It would consist of all high-speed train lines connecting central cities together in a web of train lines across the nation. The trains operating at this level would be state-of-the-art TGV/Eurostar type trains that travel at 200–220 mph. This high speed rail system is a high quality, high capacity system transporting more passengers than highways and airlines put together - using a fraction of the energy, for less than a quarter of the cost.The 800-mile California High Speed Rail project - just voted in by the people - is the first piece of this national system. Propelling California into the 21st century, the new train will link all major cities from Sacremento to San Diego with 220 mph trains.
National High Speed Rail Network
B. Regional rail systemsThis level of trains would serve as the medium-speed regional system linking the many regional destinations together and to the high-speed train station. These regional trains would connect to all the smaller cities, towns, and significant destinations within each region. This includes metro systems as well as commuter and regional trains. These new trains would serve as the backbone of a new regional planning effort to convert low density suburban development into a series of walkable, transit oriented developments along the new train lines.
Regional rail systems for each region

C. Local light rail, streetcar, trolley & tram systemsThis level of trains would serve as the local collector system connecting to the regional trains. It would have stops in all parts of cities, neighborhoods and central gathering places, as well as employment centers, retail locations, and sports and recreation facilities within each community.Ideally, these trains would never be more than a few blocks walk from all locations within cities and towns. Much like the original 44,800 mile streetcar system in America, this new system would enable a large percentage of Americans once again to live in walkable cities without the need for a car.
Local rail systems for each city and town
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
PARTNERSHIPSA green retooling of the US transportation industry is needed. Our transportation systems were built around cheap oil - which is now gone for good. No amount of biofuels, used french-fry oil, hydrogen fuel cells, and hybrid cars are going to be able to move 300 million Americans into the future. We need a new 21st century transportation system for a new age! "We need all hands on deck!" All the companies now in transportation need to retool and be included in this new plan. This would save as many jobs as possible, and minimize competition and resistance to the new systems. The retooling would include train system design, manufacturing, operations, and maintenance, and could take place as follows:Companies now known as airlines, rather than limited to managing air travel, would become “transportation providers” and invited to operate train company franchises. Airplane and auto manufacturers could start building trains, track, and parts. Airport operators could become train station operators. The FAA could change into the agency that oversees the entire operation. The Department of Transportation could plan the train network, instead of planning roads. Road builders can become train infrastructure builders.There are also a number of other American companies outside the transportation industry that would benefit greatly by getting involved in a new train system. Real estate developers would build walkable urbanism surrounding the train stations. Resort, hotel, theme park operators, and travel companies would all see increased business. Shipping and delivery companies would all save money. Defense contractors could get involved building the energy, signaling, and control systems. In addition, there are many train operators and manufacturers in Europe and Japan that would be more than willing to participate in building and operating a high-speed train network in America.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
RETOOL AMERICA Retooling industry is essential for fixing America. We are in the midst of a sea change in our society that requires us to fundamentally change our transportation and many of our industries to build the new green economy. Continuing 'business as usual' is no longer possible.
1. Retool Car Manufacturers All three American car manufacturers are on the edge of bankruptcy and are pleading for a massive bailout from the government to the tune of tens of billions of dollars - far more then their total net worth. Even with the bailout, these companies are no longer viable entities, since continued car manufacturing makes little sense in light of peak oil and
Retool car manufacturing plants into producing trains
climate change. There is an enormous need for large scale manufacturing of trains in America. Retooling the car factories can be done quickly to build trains while saving millions of jobs. A complete retooling of the car factories was accomplished in a matter of months back in the 1940s to meet the wartime need for tanks and airplanes. We can do the same thing now just as quickly. Yes we can!
2. Retool Car Parts Suppliers In addition to trains, millions of bicycles will be needed in America as we transition away from cars. Rather than import them from China, we should manufacture them here in America and create millions of green jobs. Car parts suppliers can retool into making bicycles since there will be a big reduction in the need for car parts.
Retool auto parts suppliers into making bicycles
3. Retool Airplane Manufacturers There will be a great reduction in the need for airplanes as we enter the peak oil era. Since most trips will take place in trains, the majority of airplane manufacturing will become obsolete. Currently, there is a huge demand for wind turbines, and manufacturing is unable to keep up with this demand. Airplane manufacturing plants are ideal for retooling into producing wind turbines.
Retool airplane manufacturing plants into producing wind turbines
4. Retool Road Builders As we transition away from cars, it makes no sense to spend any more money building roads that have no future. Roads and cars for the masses only made sense when there was plenty of cheap oil, but it's now gone forever. Currently, the huge need is for new train systems all across the nation. We need many thousands of miles of train infrastructure built as quickly as possible.
Retool road builders into constructing train infrastructure
We need train tracks, train bridges and tunnels, and many new train stations built. This will be one of the nation's largest construction projects ever. Road builders are the ideal group to retool and lead the way building the nation's new green transportation system.
5. Retool Real Estate DevelopersSince the era of cheap oil is over, our drive-in utopia will no longer be possible. Future development needs to be compact walkable urbanism surrounding train stations. This designs away the need for cars and oil. Walkable urbanism and trains are the future, and the building blocks for a sustainable society - creating livable, affordable, healthy, and enjoyable communities for all.
Retool developers from building sprawl into building walkable cities and towns
6. Retool Defense ContractorsWe don't need any more bombs, missiles, or war. War products are of no benefit to our society and are a huge waste of money. United States defense spending eats up half our entire nation's annual budget! Peak oil and global warming represent a far greater national security threat than terrorism or any potential enemy. The majority of our
Retool defense contractors' weapons plants into producing solar panels, etc.
massive defense budget needs to be spent ending our car and oil addiction. To accomplish this, we need to retool defense contractors into manufacturing useful products that benefit society including solar panels, wind turbine parts, and train computer control systems.
Jobs + economy + equity + environment + mobility = REAL change for America
NEW DEAL NATIONAL RAIL PLAN 2009 It's the change we need! We can do it... "yes we can!" ... Pass it on!