Price of Crude Oil Closes above $100/bbl First Time Ever

bartiromo.jpgWe’ll be playing the “Oil Game” in class tomorrow in PLSC250. When colleagues of mine used this teaching tool in their classes 4 or 5 years ago, the price of oil was about 1/3 of what it is today. In the clip, Brian Williams will tell you that oil reached a “record” high of $100.01 US a barrel. That’s only true if we’re talking about nominal dollars. In terms of real dollars it still has about 4 USD/bbl to go to hit the all-time high set in December 1979. Hmmm…I wonder what was happening in late 1979? Iran, Afghanistan, plus ca change…

Click here to see Maria Bartiromo report from NBC News.

“People are afraid that there is just not enough oil in the world to meet demand; demand which is coming not only from the United States but from emerging economies like China and India.”

Partition as a Solution to Ethnic Conflict/Violence

Today in class we discussed ethnic identity and various types of inter-ethnic violence. We saw that a large literature in political science (and related disciplines) sees the very fact of cultural (and especially ethnic) heterogeneity is being the source of much that goes wrong within states and societies. In a previous post, I mentioned Robert Putnam’s recent findings that trust is lower in more heterogeneous societies; there is a burgeoning literature on the deleterious economic impact of ethnic (and other forms of) identity (public goods provision, for example, is lower in more heterogeneous societies).

If the very fact of heterogeneity is the cause of conflict and violence, then wouldn’t a reasonable solution to inter-ethnic conflict/violence be to create new more ethnically homogeneous states out of a single ethnically diverse one? Some argue that this may be a legitimate solution to the extant difficulties in Iraq. Chaim Kaufmann has argued in favor of just this approach. Here (pdf) is an article written by Nicholas Sambanis setting out, then critiquing Chaim Kaufmann’s hypotheses regarding the usefulness of partition to resolve endemic inter-ethnic violence.

You can view a fascinating BBC documentary on the partition of India in 1947 here. Here’s an important quote from the documentary:

“…as a British barrister draws a line on a map…”

Much of the violence that occurred during the partition was the result of Muslims and Hindus (of course, the Sikh/Punjab problem adds another layer of complexity altogether) trying to be on (or being forced to move to) the right side of that barrister’s line. Millions were killed.

The Relationship Between Wealth and Health

The BBC reports on fascinating new research, which concludes that “economic growth does not necessarily translate into improvements in child mortality.” There are two points I wish to make about this: First, it illustrates an important trend in the development literature regarding the correct metric to use to determine, and compare, levels of well-being worldwide. Historically, well-being has been captured by the crude instrument of Gross National Product (GDP) per capita, but the realization that, for many reasons, the measure was too crude to be a satisfactory indicator of well-being development led to the introduction of other measures, the most useful of which is the Human Development Index (HDI) put out by the United Nations Development Program (UNDP). (Why might GDP per capita be a misleading indicator of well-being?)

The second point follows from the first; one’s policy prescriptions vis-a-vis issues of development are to a large extent determined by just which indicator of well-being one believes best captures the essential nature of that elusive concept. As such, IGOs such as the World Bank, have focused attention on overall economic growth, while scholars such as Amartya Sen (who champions the “capabilities approach”) do not view growth tout court as a magical anti-poverty elixir.

From the BBC article:

Ten million children still die every year before their fifth birthday, 99% of them in the developing world, according to Save the Children.

A study comparing economic performance with child mortality reveals that some countries have not translated wealth into improvements across society.

Survival is too often just a “lottery”, said Save the Children’s David Mepham.

He said that even the poorest countries can cut child mortality by following simple policies, but at the moment “a child’s chance of making it to its fifth birthday depends on the country or community it is born into”.

Lagging behind

Angola comes at the bottom of a new “Wealth and Survival” league table drawn up by the UN Development Programme (UNDP).

The figures for child mortality in India are shocking
Shireen Miller
Save the children India

There are few countries in the world where there are such stark wealth contrasts as there are between the wealth of oil-rich coastal strip around the Angolan capital Luanda, and the war-ravaged interior.

UNDP statisticians calculate that more than half of the babies who die in Angola could be saved were the country to spread its wealth more fairly.

child_mortality_map.jpg

Click on the map to be taken to the Johns Hopkins Bloomberg School of Public Health’s Magazine for an article on child mortality.

[Each orange dot is equivalent to 5,000 child deaths.]

 

India’s Role in the Illegal Trafficking of Body Parts

This worrisome story in the New York Times sheds light on an increasingly brazen network of doctors and bandits who have organized an international trafficking ring in human body parts, such as kidneys.  While increasing numbers of Indians, and residents of other less-developed countries willingly sell their kidneys many, like the gentleman in the story, are the victims of deception and fraud.

GURGAON, India — As the anesthetic wore off, Naseem Mohammed said, he felt an acute pain in the lower left side of his abdomen. Fighting drowsiness, he fumbled beneath the unfamiliar folds of a green medical gown and traced his fingers over a bandage attached with surgical tape. An armed guard by the door told him that his kidney had been removed.

Mr. Mohammed was the last of about 500 Indians whose kidneys were removed by a team of doctors running an illegal transplant operation, supplying kidneys to rich Indians and foreigners, police officials said. A few hours after his operation last Thursday, the police raided the clinic and moved him to a government hospital.

Many of the donors were day laborers, like Mr. Mohammed, picked up from the streets with the offer of work, driven to a well-equipped private clinic, and duped or forced at gunpoint to undergo operations. Others were bicycle rickshaw drivers and impoverished farmers who were persuaded to sell their organs, which is illegal in India.

Although several kidney rings have been exposed in India in recent years, the police said the scale of this one was unprecedented. Four doctors, five nurses, 20 paramedics, three private hospitals, 10 pathology clinics and five diagnostic centers were involved, Mohinder Lal, the police officer in charge of the investigation, said.

Globalization, Economic Development and Indentured Servitude

We will be addressing the topic of globalization later in the semester and will be viewing this video on the use of what amounts to slave labor in the silk industry in India.

I found this on the Human Trafficking and Modern-day Slavery website.

Human Trafficking Website 2007-2008. Country by country reports of human trafficking, modern day slavery, contemporary slavery, debt bondage, serfdom, forced labor, forced marriage, transferring of wives, inheritance of wives, and transfer of a child for purposes of exploitation.