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Month: September 2023

Full Circle: The Dynamics of Service Metamorphosis

Posted on by Tizita S.

My car’s tyre went flat one Saturday evening, forcing me to install an escort as service providers do not operate in the evening.

I had purchased the tyre from a roadside outlet on Bole Road, where services and repairs usually cost from 20 Br to 200 Br while tyre purchases go up to 3,000 Br.

The young men in their early 20s work on the streetside with a little more than inflation hoses, rubber mallets and unconventional test kits comprising a bottle of water infused with powder soap. Though seemingly bizarre, their methods effectively test for air leaks during inspections and are a lifeline for the motorists swarming the busy streets of Addis Abeba in case of an emergency.

The tyre appeared in good condition with impressive threads for better grip and longer service life. However, upon investigation the next morning, multiple patchworks exacerbated by wheel interaction made it irreparable.

It was unsavoury to make a 1,000 Br additional expense. Though I was tempted to confront the shop that sold me the tyre, it would be unlikely to get any compensation from a roadside transaction without any formalities.

Warranties and returns are not guaranteed in informal transactions, and one has to inspect the product thoroughly and be diligent before making a purchase.

Only a few outlets provide service round the clock. Considering the critical service they provide to motorists, they are used to being tipped and paid in denominations lower than the amount charged.

My recent incident demonstrates why repair services are essential. People should be able to access roadside outlets regardless of the time. This is especially important given the city’s rapid growth and increasing traffic congestion.

Another crucial service is gas stations. Only a few operate round the clock, which causes unnecessary congestion and wasted time for motorists.

Some opt to refill their fuel tank first light. I usually go to the one near CMC Michael after watching a late evening movie at the GAST Mall next door. By the time the movie ends, the gas station is usually empty, making the process quick.

The gamble may not always work. Sometimes, queues can remain stubbornly long from dawn until the wee hours of the night. I remember waiting up to two hours on a couple of occasions, and many people have had to wait even longer.

The pandemonium ensued as both motorists and gas stations struggled to adapt to the new system when the payment mode at gas stations was changed from cash to digital serves as a recent phenomenon.

Factors beyond the control of motorists make selecting less busy hours to fill up the tank a wise and entirely feasible option.

These challenges make essential services that work round the clock crucial, particularly for a rapidly transitioning capital city.

Availing of basic amenities and services in a thriving sector that operates outside the typical hours would offer a better quality of life for city residents, contribute to job creation and boost the economy.

The 9:00am to 5:00pm work hours make the majority of residents commute simultaneously while longer work hours alleviate rush hour traffic congestion by allowing flexibility.

Case in point are the Asian megacities such as Bangkok and Hong Kong. It is not unusual to see convenience stores and food chains working round the clock while the street markets and retailers avail their services for a major portion of the day and transport services beyond midnight.

Meanwhile, the streets of Addis are eerily quiet after 9:00pm leaving only nightclubs and a few fast food outlets open late at night. The situation is heightened in the peripheries, turning to ghost towns where even hyenas roam freely on highways and neighbourhood alleys.

On weekends, especially Sundays, vital services come to a standstill, leaving residents scrambling to meet their needs. The streets are free of traffic, but it is a wild goose chase to find some services that we take for granted in ordinary circumstances.

A few weeks ago, I had to drive nearly 25Km from Ayat to the Lagare area just to find an open photo studio. My long drive was rewarded when I came across an old and long-standing photo studio that prided itself on its round-the-clock service.

Similarly, it is ironic that motorists in the city receive a traffic ticket and need to pay to retrieve their driver’s license. While traffic police are on duty for most of the day, associated services such as banks and police stations are closed outside of regular business hours and on weekends.

This is despite the fact that traffic violations can occur and fines can be levied at any time of day, despite much of the frustration in settling the fines and retrieving the documents from stations.

Although online payment platforms have provided a solution to the problem by allowing virtual payments through mobile devices, many driving license details are not yet interfaced with the banking databases, leaving drivers to waste time and energy completing the process manually and moving between various offices. It would be fair to ask that associated services be open for the same period of time.

The frustrations of not being able to receive solutions at a time of critical need for help can be incredibly overwhelming. I recount another unfavourable personal experience when my ATM card was withheld in the machine near the Ras Hotel area, yet I urgently needed cash.

Even though I found a solution to my predicament, if the necessary providers were available, I would not need to take a lengthy procedure for the minor glitch. Keeping business open is the bare minimum criteria without which it is difficult to gauge whether service is good or bad.

Round-the-clock services in Addis Abeba are close to non-existent, which leaves much to be desired. Overhauling the system is mandatory and constitutes a potential from which the urban economy can leapfrog.

I believe the sky is the limit once a significant shift in mindset and manner of conducting business is put in place.

In contrast, maintaining the status quo ensures continuity to linger in the same situation, which is a far cry from the realities of the 21st century. As Albert Einstein famously quoted to have said, “insanity is doing the same thing over and over and expecting a different result.”

We need to think outside the box and embrace innovation in all aspects of life, including the way we work.

Time is the most precious resource that cannot be afforded to waste. Flexible working hours will kickstart a virtuous cycle which will have multiple dividends and set Addis Abeba on an upward trajectory and truly live up to its name.

The Double-Edged Sword of External Debt

Posted on by Tizita S.

The exponential growth of international capital flows, predominantly in the form of debt, has been one of the great development successes of the past 50 years. But while foreign lending has played a pivotal role in developing economies, loans are a two-edged sword. When used judiciously, they can generate high returns, boost GDP growth, and improve the well-being of borrower countries.

But if debts accumulate and the debt-servicing burden increases without a commensurate increase in repayment capacity, the consequences can be severe and even disastrous.

During the COVID-19 pandemic, for example, many countries grappled with a dramatic increase in fiscal demands, driven by rising public health expenditures and a drop in revenues due to reduced economic activities. Highly indebted countries edged closer to the brink of default, and even those with previously sustainable public finances experienced a dangerous surge in their debt burdens.

When debt levels are high and rising, crises can emerge suddenly and worsen quickly.

While several governments have taken steps to reduce their elevated debt levels and introduced reforms to avert potential crises, some countries’ debt-servicing costs are so high that meaningful adjustments are politically or economically unfeasible. Under such conditions, sceptical private creditors sell these countries’ sovereign bonds at reduced prices and refuse to extend further credit. Once this happens and governments default on their obligations, they shut themselves out of capital markets.

The subsequent economic crisis typically persists until these countries can restructure their existing debts, implement policy reforms, and restore confidence in their creditworthiness.

When a private company fails to meet its obligations, bankruptcy procedures determine the extent of liability write-downs and the allocation of the firm’s remaining assets. By contrast, no universally recognized legal mechanism for restructuring sovereign debt exists. Any solution hinges on a voluntary agreement between debtor governments and their creditors.

Over the past few years, as dozens of low- and middle-income economies found themselves heading toward default, there have been growing calls for debt forgiveness. Kenyan President William Ruto, for example, recently proposed granting African countries a 10-year “grace period” on interest payments. Speaking at the inaugural Africa Climate Summit in Nairobi, Ruto suggested that developing countries redirect funds earmarked for debt service toward investments in renewable energy.

But this and other proposals for blanket debt forgiveness or payment moratoria are deeply flawed.

Notably, some countries’ debts are inherently unsustainable. Even if their debts were suddenly forgiven, these governments would lack the resources necessary to finance major environmental initiatives. Moreover, without an agreed-upon restructuring plan and access to additional resources, essential imports required for production and consumption would be severely restricted, resulting in underutilized capacity and potential economic stagnation.

Historically, debt-restructuring negotiations have been a protracted, ad hoc process. The International Monetary Fund (IMF) would collaborate with debtor countries to assess the necessary domestic policy changes and debt adjustments. Meanwhile, sovereign creditors, cooperating through the Paris Club, would consult with private lenders and decide on an appropriate restructuring strategy.

But today’s debt landscape presents even more significant challenges. All creditors must be subject to the same haircut to reach a restructuring agreement. Otherwise, some lenders would receive full repayment while others would endure significant write-downs, and they would surely not agree to that. But China, which has emerged as a major creditor over the past two decades, has refused to join the Paris Club. Instead of taking the same haircut as other creditors, the Chinese government insists on being repaid in full, resulting in preferential treatment for China and exacerbating developing countries’ debt-servicing difficulties. Failure to agree has delayed the restructuring process.

Consequently, countries like Sri Lanka and Zambia have endured unnecessary delays in resolving their debt crises, even after reaching agreements with the IMF on essential policy reforms. The international community must establish procedures to ensure timely and fair burden-sharing among creditors to prevent significant and avoidable suffering.

The developing world’s ongoing economic turmoil underscores the urgent need to establish a new debt-restructuring framework. The World Bank recently estimated that 60pc or more low-income countries are heavily indebted and “at high risk of debt distress.” Many middle-income countries, such as Egypt, Jordan, Lebanon, Pakistan, and Tunisia, also face significant fiscal and debt challenges.

If multiple countries fail to meet their debt-servicing obligations, international creditors will become reluctant to finance other heavily indebted countries, potentially triggering a global debt crisis. Such a scenario would have devastating consequences for low- and middle-income economies and the world economy. We can avoid worsening a bad situation by streamlining and expediting the restructuring process.

Redefining Green Investments Ahead of COP28

Posted on by Tizita S.

As we move from UN Climate Week to COP28 in Dubai later this year, we must stop the “greenwishing” and “greenwashing” and start thinking about the instruments that will enable the private sector and private investors to channel more capital toward climate resilience and sustainable development. While the public sector has an important role to play in this respect, scalable solutions require significant commitments of private-sector resources.

With climate change already wreaking havoc on poor and rich countries alike, unlocking this largely untapped pool of capital has become an urgent priority.

Yet, as matters stand, many investors associate climate-centric investments with “social impact” and reduced profitability. While sophisticated investors have the means to deploy their capital profitably toward decarbonisation, the energy transition, and other climate-related sectors, such investments tend to be illiquid. They remain tightly wound up in private-equity funds, and thus inaccessible to the ordinary investors and savers who are most exposed to climate-driven food, water, and energy insecurity.

The solution is to create climate investments that are profitable, liquid, and accessible to all.

COP28 offers an opportunity to rethink how we deliver such market solutions. We can harness digital innovation to scale up promising models. To mobilize capital at scale, we must draw on the global savings of individual investors and institutions such as pension funds, insurers, and sovereign funds. Risk diversification can be achieved through retail-friendly, liquid, easily accessible instruments such as exchange-traded funds (ETFs).

The sensible way to construct a profitable, long-term, climate-aligned, widely accessible investment strategy is to develop a diversified portfolio of assets that directly or indirectly support climate financing. A portfolio that meets these requirements should comprise three main asset types for investors with a long-term horizon.

The first is climate-resilient real estate and infrastructure – assets in weather-proof, stable geographies with low climate exposure.

Real estate and infrastructure valuations in such regions are poised to appreciate significantly on the back of population shifts from high-risk areas across the Southern Hemisphere to more resilient communities in North America, Northern Eurasia, and select geographies in the Global South.

Carefully selected Real Estate Investment Trusts (REITs) and exposure to greenfield developments through ETFs are two ways to secure reliable returns from climate-adaptation efforts. As a bonus, such investments offer broader economic and societal benefits, including productivity growth, job creation, and the provision of employment and housing for migrating populations.

The second component is green commodities.

An orderly transition to a more resilient future requires massive investments not only in energy, food, and water assets, but also in the metals and critical minerals used in renewable energy and electric vehicles (EVs). These include commodities such as soy, wheat, copper, rare-earth elements, cobalt, and lithium. To avoid “greenflation” (inflation caused by decarbonisation efforts) and supply bottlenecks, we urgently need to boost production and lower the cost of securing these commodities.

Finally, a sensible climate-aligned portfolio should include assets that hedge against inflation and geo-economic risks, such as short-term and inflation-indexed sovereign bonds and gold. Not only does the negative correlation between these assets and other climate-related investments offer extra ballast, but it also provides liquidity and low volatility to meet the needs of many individual investors, pensioners, and savers. And again, there is a bonus: greater investments in inflation-proof sovereign assets will allow governments to do more to finance the green transition.

These climate-investment investments must be made available to the average investor on liquid, low-cost terms to achieve maximum impact. While ETFs can help, not everyone has a brokerage account, or even a bank account. We tend to overlook the unbanked populations of the Global South, as well as the younger generations for whom digital assets may be more appealing. According to the World Bank, 1.4 billion adults are unbanked globally, and the share of the unbanked population exceeds 50pc in several Middle Eastern, Asian, and African countries with larger youth (“digital native”) populations.

Owing to these factors, we will need to develop a digital, tokenized representation of all the aforementioned climate-investment solutions, both to achieve global scale and protect those most at risk of climate change and fiat currency debasement. But digital assets can offer a viable solution only if real-world physical and financial assets back them. Mitigating speculation risks and preserving liquidity during crises is crucial to ensure that these do not become another form of worthless crypto vaporware.

To build climate-resilient communities, encourage cross-border public-private partnerships, secure critical green supplies, and accommodate climate-driven population shifts worldwide, policymakers and asset owners urgently need to rethink how we channel capital at scale. With climate-driven costs escalating rapidly, innovation (both technological and financial) remains the most powerful tool at our disposal.

With COP28 approaching, there is no more time for temporizing and empty green-wishing.

 

This article is provided by Project Syndicate (PS).

A Tragedy Unfolding in the Poorest Countries

Posted on by Tizita S.

The poorest countries are in desperate straits, and the rest of the world is looking the other way. Doing so comes easy because low-income countries (LICs) matter little to the world’s fate in the near term. At the end of June, the combined GDP of the 28 countries in this group was roughly half a trillion dollars, a drop in the 100 trillion dollar ocean that is the global economy.

The world’s poorest countries are also nobody’s ideal export markets: the average annual income is barely 1,000 dollars, and conflict and instability are the norm for about half.

Nonetheless, 700 million people live in these countries, and about half are in extreme poverty. Impoverished people have long been accustomed to neglect from their governments, which often have other priorities. For example, they spend about 50pc more on war and defence than healthcare. Nearly half their budgets go toward public-sector wages and interest payments on debt, while a mere three percent of total government spending across low-income countries goes to support the most vulnerable citizens. That is one-tenth the average for developing economies more broadly.

It should surprise no one that a human tragedy is unfolding in these countries.

Key indicators of human development in today’s low-income countries are far worse now than they were in the LICs of 2000, before many of the latter had ascended to middle-income status. For example, maternal mortality is 25pc higher now, and the share of the population with access to electricity has fallen from 52pc to barely 40pc across this cohort. Average life expectancy is now 62 years, among the lowest rates in the world.

Making matters worse, the odds of these countries getting help from abroad have declined. Wealthier countries have chosen the wrong moment to become less generous. Even before the pandemic, foreign aid flows to the poorest countries, especially in Sub-Saharan Africa, were slowing. Today, wealthier countries are redirecting more of their foreign aid budgets to meet the surge of refugees arriving on their shores.

These developments have left few avenues for economic recovery. By the end of 2024, the average income of people in the poorest countries will still be almost 13pc lower than expected before the pandemic.

Between 2011 and 2015, grants accounted for about one-third of government revenues in the world’s poorest countries; but that share has since dropped to less than one-fifth. Poor-country governments have made up the difference by going deeper into debt, and at punishing interest rates. Government debt-to-GDP ratios in these economies soared from 36pc of GDP in 2011 to 67pc last year, the highest level since 2005 (except 2020). Fourteen LICs are now in debt distress or at high risk, more than double the number eight years ago.

As they gather in New York for the United Nations Summit on Sustainable Development Goals (SDGs), global leaders cannot afford to turn a blind eye to these developments. They must not forget the fundamental promise of the SDGs: “to reach the furthest behind first.” Even as they remain generous to arriving refugees, wealthier countries should redouble their efforts to end the misery at the source.

That means enlarging the pool of resources available to multilateral development banks to increase grants and concessional financing for the poorest countries. Greater funding is not just a moral imperative to prevent a disaster in the poorest economies; it is a matter of self-interest for all countries with the means to help. Southern European countries struggling to manage migration flows should know that they will benefit from supporting development in poor countries such as Niger.

Wealthier countries, and all international financial institutions, should move decisively on three fronts.

They must increase concessional financing for the poorest countries, with aid addressing emerging challenges such as climate change, economic fragility, and pandemics.

Increased aid will also help these countries invest in critical sectors such as health, education, and infrastructure, enhancing their resilience and growth potential. Aid effectiveness (a major concern for donors) can be improved by strengthening donor coordination and building competent local institutions to select, manage, and monitor projects. International financial institutions, for their part, can help crowd in private finance in sectors that offer the promise of both development and profits.

Debt restructuring must be accelerated.

The Common Framework for Debt Treatment Beyond the DSSI has struggled to deliver relief ever since the G20 announced it nearly three years ago. If finalised, Zambia’s debt-restructuring agreement with its creditors will be a welcome development; but it was concluded three months ago, and the country is still waiting for debt relief.

The framework’s glacial pace, and all the uncertainties that come with it, have deterred too many countries from seeking the relief they so urgently need. It is time to pick up the pace. For many lower-income countries, restoring long-term debt sustainability will depend on debt restructuring. Without it, they will remain paralysed, unable to attract the private financing they need to tackle the formidable development challenges of this decade, from creating jobs and improving welfare to making the planet more livable.

Finally, we must double down on the reform agenda by ensuring that ambitious domestic measures complement global initiatives to bolster the poorest countries. International financial institutions can make a difference by helping LICs mobilise domestic revenues and improve spending efficiencies and debt management. They can also support governments’ efforts to improve institutional frameworks, build human capital, ease impediments to private investment, and harness the potential of digital technology, all of which will boost these countries’ long-term growth prospects.

Time is running out. The growing hopelessness among citizens of the poorest countries will feed a vicious cycle already underway. Desperate to escape misery at home, many will risk everything to find refuge abroad. The suffering of millions of people in faraway lands is not as far away as it may seem. It is contagious and already spilling over national borders, with unpredictable global consequences.

Cancer’s Rising Toll Urges a Quest for Universal Health Inclusion

Posted on by Tizita S.

The world’s governments were expected to adopt a new set of commitments focused on accelerating the implementation of Universal Health Coverage (UHC) at the second United Nations High-Level Meeting in New York. No resolution would be complete without the explicit inclusion of comprehensive cancer services.

Cancer causes an estimated 10 million deaths each year. Beyond the human suffering, the disease has profound – and growing – economic consequences: by 2030, spending on cancer care worldwide is projected to reach 458 billion dollars. In many countries, patients pay for much of their cancer care out of pocket, a burden that often leads to financial catastrophe.

Investing in cost-effective prevention and early detection strategies is both a moral and economic imperative. Prevention is far cheaper than treatment; where cancer cannot be prevented, early detection makes successful treatment more likely, at a far lower cost.

When cancer does progress, the full range of quality therapies – including surgery, radiation, and chemotherapy – should be accessible and affordable to all. For noncommunicable diseases overall, every dollar invested in cost-effective interventions can generate a return of up to seven dollars through reduced health-care costs and improved productivity. While prevention and treatment are vital, so is palliative care, which alleviates unnecessary suffering for patients, their families, and caregivers. It provides survivorship plans for remaining healthy. In the wake of a pandemic that significantly disrupted palliative-care services, and with a rising number of cancer survivors worldwide, investments in both areas are urgently needed.

Comprehensive cancer care is essential to achieving social development goals related to equality, social justice, and health. With sufficient political will, universal care can be achieved. In Pakistan, the Shaukat Khanum Cancer Hospital network offers world-class cancer care. The King Hussein Cancer Centre has significantly expanded cancer care and scientific research in Jordan, and collaborates with international partners such as St. Jude Children’s Research Hospital to deliver care to patients from Syria and Lebanon.

But, countries face many challenges in incorporating cancer care into the Universal Health Coverage schemes.

In Kenya, for example, collaborative efforts by various cancer-control organisations have expanded access to services and removed financial barriers, but reaching rural populations remains difficult. In Indonesia, a decentralised health system has improved health equity, but gaps remain in cancer prevention and early diagnosis. Even in Thailand, which has integrated six areas of cancer control – cancer informatics, primary prevention, early detection, treatment, palliative care, and cancer-control research – into its scheme, improved public awareness initiatives are needed to ensure that the relevant services are being used.

Nonetheless, the Thai model highlights the potential public health benefits of the schemes, including comprehensive cancer care. Recognising that potential, the Union for International Cancer Control, which has more than 1,150 members in more than 170 countries and territories, works continuously with governments and other stakeholders worldwide to develop and implement national cancer control strategies and integrate them into national health insurance plans.

As a goal without a plan is merely a wish, a plan without dedicated resources gathers dust. Unless basic health insurance schemes cover essential cancer services, they will remain inaccessible or unaffordable to many who need them. And where insurance exists, limits on out-of-pocket spending are crucial. Cancer patients often reach their deductible soon after diagnosis, owing to the many required tests and procedures. But treatment often lasts months or years and involves numerous visits to doctors, tests, surgeries, radiation treatments, drugs, and other services.

An effective national cancer-control strategy must reflect a nuanced understanding of cost-effectiveness that encompasses not just upfront costs, but also long-term savings, including improved quality of life and increased productivity. It must also include a commitment to addressing not only the illness itself, but each individual’s holistic experience, and a firm resolve to break down financial and cultural barriers that prevent early diagnosis and treatment.

The UN High-Level Meeting provides a rare opportunity to elevate cancer care on the global health coverage agenda. That is why it is welcome news that cancer has been referenced in the meeting’s draft resolution. But governments must not stop at lofty pledges and verbal commitments. Only concrete action to implement UHC that includes quality cancer services and accounts for the diverse needs of populations across economic strata and regions can ensure that cancer care does not become a missing piece in the global health puzzle.

 

This article is provided by Project Syndicate (PS).

Why Industries Slowly Waking Up to Shifting Energy Management

Posted on by Tizita S.

The world heralds an era of sustainability. While industries remain vital cogs in this machinery, there seems to be a chasm between intent and action, especially in the realm of energy management. The manufacturing sector appears to be at an inflexion point with mounting environmental regulations and surging electricity costs.

For many, the conversation around energy efficiency is akin to elevator music: always present but rarely given a second thought. However, within the vast expanse of industry, the sonnet of sustainability grows louder.

But are they truly listening?

In boardrooms across the global manufacturing landscape, mentioning ‘energy management’ or ‘energy auditing’ might elicit more yawns than nods. It is a startling observation, especially when considering industries’ pivotal role in the global energy footprint. Yet, as the past decade rolled out, there were discernible shifts. No longer just a whisper in the corridors of the environmentally conscious, the discourse around energy took centre stage, fueled mainly by regulatory pressures and the ever-climbing energy bills.

However, many industry stalwarts view this shift with scepticism, often perceiving it as more of a regulatory hoop to jump through than a genuine shift to sustainable practices. Non-governmental organisations have eagerly filled the void left by industries’ sluggish response. They have been at the forefront of this nascent transformation, offering energy management and auditing services on a platter. Their intent is commendable, but the results perhaps less so.

The heart of the issue lies in the perception of these services. Rather than viewing these audits as a strategic goldmine, industries often perceive them as mandatory, courtesy of their complementary nature. They expect quick fixes, low disruptions, and occasionally, a handout to replace outdated equipment. Industries are increasingly seeking a magic pill. The long-term vision often gets blurred by the allure of immediate, albeit superficial, gains.

Two monoliths stand tall, casting shadows over the path to genuine energy efficiency: Within the hectic confines of factories and plants, energy management often gets relegated to makeshift committees. When daily operations demand attention, these committees find themselves pushed to the sidelines, their recommendations gathering dust.

There is also a policy void. The state apparatus, a crucial stakeholder in this dynamics, often appears fragmented in its approach. The lack of cohesive policy frameworks supporting energy efficiency means industries lack a concrete roadmap.

The baton must be passed to the engineers who design and run these mammoth factories for real change. These professionals, particularly from the mechanical and electrical domains, should be well-versed in the nuances of energy management, making it an integral part of their design and operational ethos.

The financial aspect cannot be ignored. Energy tariffs, especially those for electricity, need an overhaul. The current structure often disincentivises industries from investing in energy-efficient equipment, as the ROI appears distant or nebulous. Walk into any factory, and the sights of leaking steam valves, faltering power factor correctors, and other inefficiencies are rampant. Yet, unless these glitches halt production, they are often overlooked.

The cost of rectifying them might be minuscule, but the cumulative impact on energy consumption and the bottom line is monumental.

This is where the role of energy auditors becomes vital. Their task is not just to identify inefficiencies; but, it is also to translate energy wastage into tangible financial implications Doing so, the onus is not solely on the manufacturing sector. The ecosystem – from policymakers to consumers – needs to rally.

Industries should be encouraged, if not mandated, to have dedicated energy managers who document and drive energy initiatives. Benchmarks should be established, allowing for annual evaluations and comparisons. The market, too, needs to respond. From energy-efficient products to specialised services, the availability of such offerings would undoubtedly catalyse industrial actions.

Public awareness is crucial. The average consumer often remains oblivious to the energy efficiency (or lack thereof) of products they buy. Bridging this knowledge gap can drive demand for more energy-efficient products, compelling industries to act.

While the manufacturing sector’s journey towards genuine energy efficiency might still be in its infancy, the roadmap should be clear. With collective intent and action, we might witness an industry truly awakened to the imperatives of energy management.

The New World Disorder

Posted on by Tizita S.

There is an old Soviet joke in which a journalist asks the General Secretary of the Communist Party to assess the country’s economy. “Good” is the short answer. The journalist implores the leader to elaborate so he can complete his story. “In that case,” the General Secretary responds, ‘not good.’ ”

Much the same could be said of the state of the world today. As many global leaders gather in New York for the 78th annual session of the United Nations General Assembly, with the notable exception of Chinese President Xi Jinping, Russian President Vladimir Putin, UK Prime Minister Rishi Sunak, Indian Prime Minister Narendra Modi, and French President Emmanuel Macron, there are reasons to be concerned.

The US-China relationship, arguably the most important of this era, is in poor shape despite a recent increase in the pace of diplomatic exchanges. The US goal is for the two major powers to establish a floor for bilateral ties. At best, however, the two governments will be able to avoid a crisis. But that is made more difficult by China’s refusal to resume military-to-military communications and establish a crisis communication channel.

Even optimists do not foresee a path for the two to cooperate meaningfully on pressing regional or global challenges in the near future.

China faces significant economic challenges, mainly due to its policy shortcomings. But even if the problems are homegrown, it does not mean the consequences will remain confined to China. At a minimum, what happens there will impede global economic growth. At worst, there is the possibility that China’s leadership will be tempted to act more aggressively abroad to distract from its domestic economic woes.

Elsewhere in the Indo-Pacific, North Korea continues to expand its nuclear arsenal’s size and quality. The Pyongyang regime continues to test increasingly advanced ballistic missiles and has unveiled a nuclear-armed submarine, which would increase the survivability of its nuclear capabilities. There are no indications that North Korea is prepared to discuss, much less compromise on, its nuclear or missile programs.

Another concern is that Ukraine’s counteroffensive, launched roughly three and a half months ago, has made limited progress. Well-fortified Russian forces still control large swaths of Ukraine’s east and south. This reality, along with Russia’s ability to boost its wartime weapons production – despite the US-led sanctions – and import arms from Iran and North Korea, suggests that the war, now well into its second year, will continue for some time.

Ukraine is understandably disinclined to compromise on its goal of reclaiming its territory. It continues to believe that the military tide will turn in its favour as more advanced arms arrive from the West. For his part, Putin thinks he will be able to ride out the costs of the war and that waning American and European support for Ukraine is a matter of “when,” not “if.” None of this gives would-be peacemakers much to work with.

In Afghanistan, it is increasingly clear that the new Taliban resembles nothing so much as the old Taliban. The real question is to what degree they will again allow their country to become a launchpad for terrorism. Then there is the question of how much the Taliban will contribute to the instability that has exacerbated Pakistan’s vulnerabilities.

Speaking of weak states suffering from poor governance, weak institutions, and limited capacity, their number is growing in Africa and Latin America.

From a global perspective, the world is not doing much better. Following a worldwide pandemic that claimed roughly 15 million lives, the past summer was the hottest on record. With just over two months remaining until officials from across the world convene for the UN Climate Change Conference (COP28) in the United Arab Emirates (UAE), there is little reason to believe that governments are prepared to prioritise climate concerns over near-term economic priorities.

Finally, as artificial- and augmented-intelligence technologies rapidly evolve, there are no signs of an emerging international consensus on how to take advantage of their constructive dimensions and rein in their potentially destructive applications.

There is some good news. The strong Western response to Russian aggression and, more broadly, the renewed vitality of American-led partnerships and alliances in the Indo-Pacific aimed at deterring Chinese adventurism are prime examples. In the Middle East, Iran recently released five American prisoners in exchange for Washington giving Tehran access to six billion dollars in frozen assets, on the condition that the funds be used only for food and medicine. The two countries also appear to be working on an arrangement – albeit not a formal pact – whereby Iran would accept some limits on its nuclear activities in return for sanctions relief.

Similarly, negotiations appear to be making some headway on a US-brokered deal that would normalise relations between Israel and Saudi Arabia. If signed, this agreement can potentially strengthen Saudi Arabia’s defences against Iranian aggression and provide Israeli-Palestinian diplomacy with much-needed momentum.

There is no getting around the reality that the bad news outweighs the good. International development goals are not being met. The recent G20 summit in India accomplished little, and the UN General Assembly meeting appears to follow in its footsteps. The UN’s most important component, the Security Council, is sidelined and will remain so, given that one of its veto-holding members is waging a war that violets the UN Charter’s most fundamental principle.

At a time when the demand is high for effective international cooperation, it seems to be in woefully short supply.

 

This article is provided by Project Syndicate (PS).

Bait and Switch Strategy

Posted on by Tizita S.

Heading to an unfamiliar destination recently, I ordered service from one of the taxi-hailing companies. I had a chance to discuss several aspects of life matters with the driver including inflation and the rise of rental fees.

It was a decent conversation. As the dropoff point approached, he turned off the distance meter, counting the fare I was supposed to pay. With some distance left to travel inside the compound, he insisted on taking me to the entrance as an act of benevolence.

I paid the indicated amount but he refused to return the 50Br change, claiming it was for the distance travelled after the meter was off.

I attempted to explain that such a short distance could not round up that high. To my astonishment, the driver responded in entitlement that he deserved praise and a tip since he drove to a remote area that would make getting a client upon return difficult.

That was not supposed to be on me, but if he had approached me politely and provided me with a clear explanation regarding the reason for the additional payment, I would have considered it.

However, individuals who attempt to deceive or outwit others possess the ability to pinpoint and take advantage of their vulnerabilities. Quite often, they target those who are trusting and inclined to believe in the good intentions of others.

Many service providers mask their exploitive traits behind friendly and empathetic conversations. Those who avoid confrontation are particularly susceptible to exploitation and manipulation.

I empathise with the inconvenience of not having exact change, but some drivers might take advantage of this situation. There are also those who are willing to waive specific amounts for the customer.

But, it is disrespectful to declare that the fare is a certain amount and refuse to give back even the smallest amount of change simply because the driver feels privileged. Being charged a random amount just because I seem willing to pay is greedy.

Not too long ago, I had a great encounter with another driver in the past who went above and beyond to help me while I was carrying a lot of items. Despite driving me to multiple locations, he did not take advantage of the situation and charged me a fair amount.

Although he was content with the indicated amount, his service compelled me to tip a generous amount.

Tipping should always be optional and at the discretion of the customer while any additional charges, such as excessive wait times, should be calculated by the meter.

I believe it is unethical to charge consumers exorbitant prices for a product or service worth less amount.

Salespeople may employ various tactics to persuade clients to purchase. Through their strategies might come false promises and discounts that are not actually available. This is particularly prevalent when shopping for clothing and footwear with the usual justification being that the product is of quality and bought at a higher price.

Profit-making is a personal preference depending on expenses. A 50 Br margin is sufficient for some while others take it up a notch to double what they paid for. Although they have a right to set their own prices, there are ethical considerations that should be taken into account. Fairness should be a guiding principle.

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Posted on by Tizita S.

The resale ticket value, in pounds sterling, for a seat to watch a football match of Liverpool F.C., a Premier League club leading the way by offering the most economical match day ticket at just nine sterling, according to SeatPick. However, resale tickets show an increase of 2,060pc.

 

“[It] is not that process.”

Posted on by Tizita S.

Mohamed Othman, chairman of the International Commission of Human Rights Experts on Ethiopia, criticised a consultation process for transitional justice under the auspices of the federal government while reporting to the UN Human Rights Council last week. He argued that this process will not ensure a “credible and inclusive process of truth, justice, reconciliation and healing”, which he said “has never been more urgent.”

WET MIRAGES

Posted on by Tizita S.

A booming plastic container market around the Saris area bustles with shoppers inspecting the selections. Water supply shortages have plagued the capital as an expanding population size’s demand is unmet by the drops moving through the pipes. The Addis Abeba Water & Sewage Authority relies heavily on underground wells and surface water from the Legedadi, Dire and Gefersa dams. With the Authority digging 28 wells to meet the demand shortage, several parts receive water through the taps three days a week at most. A growing number of urbanites procure the services of water trucks that sell underground water sourced from the outskirts of the capital.

 

LEANING LOSSES

Posted on by Tizita S.

A telephone pole gently rests aside DebreZeit road, tucked into the city’s ageing infrastructure. Ethiopia’s infrastructure has been under rising assault by robbers who mimic maintenance workers appointed by the state. The ones pared from theft are constantly a victim of subdued synergy between government bureaus. The International Journal of Scientific & Technology Research published a study in 2020 indicating that lack of coordination between agencies was a significant factor in delays, cost overruns and poor quality infrastructure.