Mapping Money

Economic activity which mainly uses raw materials such as waterways, sea, forests and soils, increased to a (GWP) (Gross World Product): (purchasing power parity exchange rates) of $23 trillion by 2002; $51.48 trillion by 2004 and $59.38 trillion by 2005 and in 2008 (market exchange rates) it was $60.69 trillion. Yet global wealth does not translate into an increase in global well-being. Extremes of wealth and poverty have increased and according to TD Bank Financial Group Economists Drummond and Tulk (2006) wealth disparities will intensify. In Canada alone, the wealthiest or Ultra High New Worth (UHNW) families, who comprise only a fraction of Canada’s households, controlled almost half the investable assets: $1.3-trillion of $2.4-trillion in 2007. The “vast majority” of that $1.3-trillion held by UHNW with family offices Chevreau, Jonathan. 2007-05-14).

Mavericks, tycoons and risk-takers, (many of whom became the Ultra High Net Worth (UHNW) individuals and families – people capable of seeing resources as opportunities and knowing how to manage them to their own advantage, are western heroes. As long as enough of the resources trickled down, translating into a reasonable quality of life for most people in the form of jobs, assets, properties, vehicles, services and common recreation and parklands, we remained in a love-hate relationship with the the elite who had status, wealth and/or power. In 1992 Ulrich Beck described a world where the unintended consequences of the production of the former were no longer benefiting the latter. Certitude in access to fundamentals like clean air, water, sufficient food, housing was eroding in places that had never doubted before. And how the UHNW are becoming even more enriched by using raw materials such as waterways, sea, forests and soil, is troubling.

The Bruntland Commission reported (1987) that since 1977 public concern had been seized by the realization that crises once considered to be separate and therefore more containable – such as environmental crisis, development crisis, energy crisis, (by 2009 include food crisis, water crisis, poverty crisis, financial crisis) – were in fact, global. The dissolving of boundaries between the neat compartmentalization of the globe and its resources into nation states and sectors (energy, agriculture, trade), and within broad areas of concern (environment, economics, social) which made them once seem as one-by-one problems with solutions, were already understood to be much more far-reaching and complex. The one-world one-earth future was no longer a utopian dream or dystopian nightmare, just a pragmatic reality Our Common Future.

Risk Management: Shrinking Watersheds and Aquifers

The most vulnerable to social exclusion, the most impoverished have been hit harder than ever before and their numbers are growing. We have the technical and scientific capacity to link data from different sources and scales and to make this information widely available through Web 2.0 or the social media – crucial information regarding public policies, legal aspects, ethics, (moral mathematics?) etc of the depletion of aquifers, watersheds, and the re-routing of limited water resources. Who is producing reliable assessments of extremes of water wealth and poverty? Without access to balanced, objective information how can we expect to have the individual, political and institutional will to establish objective criterion for indexing water resource use and management? With information, can we hope for knowledge and dream of wisdom?

Groundwater Processes are Virtually Unknown

“Many of Canada’s freshwater resources are under stress because of increasing municipal and industrial use and impacts from human activities. To ensure protection of public health and the aquatic environment, Canadians need state-of-the-art treatment plants capable of removing a growing array of pollutants from wastewaters. This includes emerging contaminants such as pharmaceuticals and endocrine-disrupting chemicals disposed of in the sewage system, pathogens such as the Corona virus, and nutrients that feed unwanted and potentially toxic algae growth. In Alberta, groundwater processes are virtually unknown. The full long-term impacts of water use by the oil and gas industry are poorly understood, and future expansion of this industry will rely on improved, cost-effective water conservation and management practices. Dr. Tom Harding of the University of Calgary’s Institute for Sustainable Energy, Environment and Economy does on research areas the recycling and reuse of water in oil and gas production (ISEEE).”

Is water a commodity or a human right?

According to T. Boone Pickens (b. 1919- ), the Texas oil tycoon, “he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” See also Mapping Blue Gold

According to the United Nations Committee on Economic, Social and Cultural Rights (UNESCO) water was formally recognized as a human right for the first time when [they] adopted the ‘General Comment’ on the right to water, and described the State’s legal responsibility in fulfilling that right. “The human right to drinking water is fundamental to life and health. Sufficient and safe drinking water is a precondition for the realization of human rights.” (UNESCO 2002-11-27).

According to BBC News Online environment correspondent, Alex Kirby, who explored fears of an impending global water crisis in his 2004 article when 1/3 of the world’s population were already living in water-stressed countries, “We have to rethink how much water we really need if we are to learn how to share the Earth’s supply (Kirby 2004-10-19).”

According to The World Commission on Environment and Development (WCED). 1987.”Our Common Future.” “Water is essential for life, and an adequate water supply is a prerequisite for human and economic development. It hasbeen recognized that human behavior can have an impact both on water, and on the global ecosystem, and that there is a need to regulate that behavior in order to stabilize and sustain our future (WCED, 1987 cited in Sullivan 2002). Global water resources are limited, and only through a more sustainable approach to water management, and more equitable and ecologically sensitive strategies of water allocation and use, can we hope to achieve the international development targets for poverty reduction that have been set for 2015 (DFID, 2000).”

According to University of Alberta’s Dr. Bill Donahue, Alberta treats water ”as an inexhaustible resource [...] The disconnect between supply and demand is not sustainable (Simon 2002-08-09)..”

“Water, an increasingly valuable multiple-use resource, is the source of continuing conflict in Canada and abroad. Its use and control presents significant challenges to governments, stakeholders, and citizens. Canadian Water Politics explores the nature of water use conflicts and the need for institutional designs and reforms to meet the governance challenges now and in the future. The editors present an overview of the properties of water, the nature of water uses, and the institutions that underpin water politics. Contributors highlight specific water policy concerns and conflicts in various parts of Canada and cover issues ranging from the Walkerton drinking water tragedy, water export policy, Great Lakes pollution, St Lawrence River shipping, Alberta irrigation and oil production, and fisheries management on the Atlantic and Pacific coasts. Canada – with its Great Lakes, three oceans, and border with the US – provides an ideal reference point for studying water use rivalries, conflicts, and governance. By exploring the controversies surrounding water management in Canada, Canadian Water Politics is an essential source for citizens, officials, academics and students, and contributes to our understanding of natural resource management and environmental policy at home and globally (Review of Sproule-Jones, Johns and Heinmiller 2008-11-20).”

Who’s Who

The Brundtland Commission, formally the World Commission on Environment and Development (WCED), created by the United Nations in 1983, to address growing concern “about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development.” In establishing the commission, the UN General Assembly recognized that environmental problems were global in nature and determined that it was in the common interest of all nations to establish policies for sustainable development. (WCED 1987). Their report entitled “One Common Future” recommended securing water availability for the needs of future generations. “On the development side, in terms of absolute numbers there are more hungry people in the world than ever before, and their numbers are increasing. So are the numbers who cannot read or write, the numbers without safe water or safe and sound homes, and the numbers short of woodfuel with which to cook and warm themselves. The gap between rich and poor nations is widening – not shrinking – and there is little prospect, given present trends and institutional arrangements, that this process will be reversed (WCED 1987:1).”

Copenhagen Climate Council is an Anti-Kyoto organisation which “works against most US government efforts to address climate change.” The self-defined ”global climate leaders” are in fact business leaders as CEOs of major global corporations, hoping to seize “seize the unique opportunity which the Copenhagen Summit 2009 offers to do something good for the global environment and at the same time do good business.” The U.N.’s post-Kyoto, post-2012 negotiations will be finalised in Copenhagen in 2009. Global business leaders issued “The Copenhagen Call” at the close of the World Business Summit on Climate Change on May 26 where CEOs discussed “how their firms can help solve the climate crisis through innovative business models, new partnerships, and the development of low-carbon technologies. They will send a strong message to the negotiating governments on how to remove barriers and create incentives for implementation of new solutions in a post-Kyoto framework.” The Climate Council is represented by Don Pearlman, an international anti-Kyoto lobbyist who was a paid adviser to the Saudi and Kuwaiti governments who followed the US line against Kyoto. Ms Dobriansky met Don Pearlman to “solicit [his] views as part of our dialogue with friends and allies (Vidal 2005-06-08).”

Maud Barlow is the National Chairperson of the Council of Canadians- A citizen’s watchdog organization with over 100,000 members. One of their ongoing campaigns is that water is a public trust which belongs to everyone. She is also the co-author of Blue Gold: The Fight to Stop the Corporate Theft of the World’s Water.

Bechtel Corporation (Bechtel Group) is the largest engineering company in the United States, ranking as the 7th-largest privately owned company in the U.S. With headquarters in San Francisco. wiki Bechtel was forced to back down on its efforts to taking control of the Cochabamba, Bolivia water supply and privatizing it in 2000 when Bolivian protesters were joined by overwhelming international support. Bechtel Corporation, one of the world’s largest engineering and construction services companies has been owned and operated by the Bechtel family since incorporating the company in 1945. It was founded by Warren A. Bechtel (1872 – 1933) in 1898. The current Bechtel CEO is Riley P. Bechtel, one of the richest men in the United States. wiki

Paula Dobriansky, US under-secretary of state for President George Bush’s administration between 2001 and 2004, sought the advice of anti-Kyoto Exxon executives on what climate change policies Exxon might find acceptable and thanking them for their active involvement in helping to determine climate change policy. These exchanges were revealed in the US State Department briefing papers, “documents, which emerged as Tony Blair visited the White House for discussions on climate change before next month’s G8 meeting [2005], reinforc[ing] widely-held suspicions of how close the company [Exxon] is to the administration and its role in helping to formulate US policy(Vidal 2005-06-08).”

Dr. Bill Donahue of the University of Alberta was quoted in the New York Times: Alberta treats water ”as an inexhaustible resource [...] The disconnect between supply and demand is not sustainable (Simon 2002-08-09)..” Dr. Bill Donahue of the University of Alberta’s Environmental Research and Studies Centre said his research at Muriel Lake suggested that the oil companies’ appetite for water was having a long-term effect. Although heavy rains in 1997 replenished many other lakes in the area, but the level of Muriel Lake is falling again. Mr. Donahue said the addition of chemicals to water used in oil recovery and the fact that much of the recycled water ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle (Simon 2002-08-09)..” “The Muriel Lake Basin Management Society was formed in 1999 in response to these severe losses of water. In 2002, Dr. Bill Donahue, with the support of Dr. Dave Schindler, the Gordon Foundation, the Natural Sciences and Engineering Council of Canada, and ERSC, began a study to determine the local and regional water budgets. Drs. Bill Donahue and Alex Wolfe also began a study of the history of water quality, biology, and climate change in Muriel Lake.” Limnologist Anne-Marie Anderson reported that the lake levels of Muriel Lake (northeast of Edmonton and close to the hub of oil sands activity, including Imperial’s Cold Lake operation) were monitored since 1967. The lake reached its maximum in 1974, a very wet year but since then water levels declined steadily, a drop in lake level of nearly 3 m in 2000 from 6.6 m in 1962. As a result of the drop in lake levels, shoreline width has increased considerably. This amounts to perhaps a 50 to 60% loss in the volume of water. There are also concerns that the decline in water levels is resulting in a deterioration of lake water quality and fishing. (Anderson 2000-04).

Exxon the US’s most valuable company valued at $379bn (£206bn) dominates The Global Climate Coalition GGC, and is the main anti-Kyoto US industry group. President Bush considered Exxon “among the companies most actively and prominently opposed to binding approaches [like Kyoto] to cut greenhouse gas emissions [...] Paula Dobriansky, US under-secretary of state for President George Bush’s administration between 2001 and 2004, sought the advice of anti-Kyoto Exxon executives on what climate change policies Exxon might find acceptable and thanking them for their active involvement in helping to determine climate change policy. These exchanges were revealed in the US State Department briefing papers, “documents, which emerged as Tony Blair visited the White House for discussions on climate change before next month’s G8 meeting [2005], reinforc[ing] widely-held suspicions of how close the company [Exxon] is to the administration and its role in helping to formulate US policy(Vidal 2005-06-08).”

The Global Climate Coalition GGC, dominated by Exxon, is the main anti-Kyoto US industry group. President Bush considered Exxon “among the companies most actively and prominently opposed to binding approaches [like Kyoto] to cut greenhouse gas emissions(Vidal 2005-06-08).”

Oscar Olivera, was secretary of the Bolivian Federation of Factory Workers. In 2006 he addressed the World Development Movement conference held in Britain on the theme of “Whose Rules Rule.” He was a protest leader against water privatisation by the US-based multinational company Bechtel when Bechtel came to Cochabamba, Bolivia with the intention of taking control of the water supply and privatizing it in 2000. Olivera won the 2001 Goldman environment prize.

T. Boone Pickens (b. 1919- ) Pickens, the Texas oil tycoon, who made his fortune in oilpatch investments, is now planning on building the world’s largest wind farm in Texas. In 2008 he introduced “The Pickens Plan, [which called] for the United States to cut its dependence on foreign oil by more than one-third by making natural gas and wind power much bigger parts of America’s energy supply.” (CBC 2009-06-17.) He proposes that the private sector build thousands of wind turbines that could potentially supply one-fifth of electricity in the U.S. He claims wind power would replace natural gas in power generation; natural gas could then replace diesel and gasoline as a transportation and the U.S. could become free from its foreign oil dependency. He insists that Canadian oil is not considered to be “foreign.” ( “CBC 2008-06-20).”

Pickens who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets. “T. Boone Pickens [...] owns more water than any other individual in the U.S. and is looking to control even more. He hopes to sell the water he already [had in 2008], some 65 billion gallons a year, to Dallas, transporting it over 250 miles, 11 counties, and about 650 tracts of private property. The electricity generated by an enormous wind farm he is setting up in the Panhandle would also flow along that corridor. As far as Pickens is concerned, he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” In June of 2009 he claimed that he was very interested in Alberta as a potential site for his giant wind farms if he could make a better deal in Alberta than in Texas. He is already priming the Alberta business community. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their oil, water and/or energy supply. He is persistent, single-minded and worked for decades to one by one change relevant laws in his favour in the Canada River watershed in Texas to gain the control he needed. Pickens donated $2.25 million in 2006 to establish the Boone Pickens Centre for Neurological Science and Advanced Technologies at the the Hotchkiss Brain Institute, University of Calgary, which was created by Pickens’ long-time friend Calgary Flames co-owner Harley Hotchkiss with a gift of $15 million in 2004. In June 2008 Pickens donated another $25 million to research at the Hotchkiss Brain Institute which is the largest donation ever given to the University of Calgary by a single person and the only philanthropic donation Pickens has made outside the U.S. Pickens, who has an estimated net worth of $3 billion, has given away $700 million from 2003 to 2008. Pickens lived in Calgary briefly in the 1960s working as a geologist ( “CBC 2008-06-20).”

T. Boone Pickens engineered a shrewd takeover of an 8 acres stretch of scrub-land near Amarillo, Roberts County, Texas. The acquisition of this land was “central to Pickens’ plan to create an agency to condemn property and sell tax-exempt bonds in the search for one of his other favorite commodities: water. Approval of the water district was all but certain as Texans voted [November 2007] in state and local elections. By law, only the two people who actually live on the eight acres will be allowed to vote: the manager of Pickens’ nearby Mesa Vista ranch and his wife. The other three owners, who will sit on the district’s board, all work for Pickens. Pickens “has pulled a shenanigan,” said Phillip Smith, a rancher who serves on a local water-conservation board. “He’s obtained the right of eminent domain like he was a big city. It’s supposed to be for the public good, not a private company.” Pickens and his allies say no shenanigans are involved. Once the district is created, the board will be able to issue tax-exempt bonds to finance construction of Pickens’ planned 328-mile, $2.2 billion pipeline to transport water from the Panhandle across the prairie to the suburbs of Dallas and San Antonio. If Pickens can’t find a buyer for the bonds or for his water – and he hasn’t yet – he might buy the bonds himself to jump-start the project, said his Dallas-based lawyer, Monty Humble of Vinson and Elkins. The board will spend about $110 million to buy the right-of-way for the pipeline, using the power of eminent domain to acquire property if necessary, Humble said. Still, Pickens faces obstacles. To help pay for construction, he plans to piggyback wind power on the water infrastructure. He plans wind farms on the ranchland and wants to run electricity cables along the right-of-way of Mesa’s water pipeline. All told, the wind and water project is expected to cost more than $10 billion. Pickens said he has about $100 million invested so far. “This is a $10 billion project,” he said in an interview. “It better be profitable.” Most of all, he needs a group of confirmed buyers for his water. That’s in part because of political resistance to his plan for acquiring water rights. Several Dallas-area water districts have refused to sign up. “We have real concerns about private control of water,” said Ken Kramer, director of the Texas Sierra Club. “Water is a resource, yet in some respects it is a commodity. It’s as essential to human life as air. That puts water in a different class.” John Spearman Jr., a Roberts County rancher and chairman of the Panhandle Groundwater Conservation District, is one of many local critics who contend that Pickens’ water play could upset conservation efforts and seeks to profit from shortages of a vital resource. “He has the legal authority to do it,” Spearman says. “We can’t stop him (Woellert 2007-11-07.”

Meera Karunananthan, water campaigner for The Council of Canadians opposes an expanded Alberta water market. “The water market system is absolutely not the solution. We consider water to be a human right. When you allocate according to the laws of the market, then you see water going to those who can pay the most. So it goes to the highest bidder.” She argues the government should instead create a hierarchy of water use, allocating to those who need it most — including the environment (Klaszus 2009-06-25).

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), an international environmental treaty The Kyoto Accord was first negotiated in Kyoto, Japan in December 1997, to “establish a legally binding international agreement, whereby all the participating nations commit themselves to tackling the issue of global warming and greenhouse gas emissions.” The objective was to stabilize and reconstruct “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” The Kyoto negotiations built upon the research of The Intergovernmental Panel on Climate Change (IPCC) which predicted an average global rise in temperature of 1.4°C (2.5°F) to 5.8°C (10.4°F) between 1990 and 2100. The agreement finally came into force on 16 February 2005 when following ratification by Russia ratified it on 18 November 2004. As of 14 January 2009, 183 countries and the European Community ratified the agreement. The Kyoto Protocol include “commitments to reduce greenhouse gases that are legally binding; implementation to meet the Protocol objectives, to prepare policies and measures which reduce greenhouse gases; increasing absorption of these gases and use all mechanisms available, such as joint implementation, clean development mechanism and emissions trading; being rewarded with credits which allow more greenhouse gas emissions at home; minimizing impacts on developing countries by establishing an adaptation fund for climate change; accounting, reporting and review to ensure the integrity of the Protocol; compliance by establishing a compliance committee to enforce compliance with the commitments under the Protocol.” wiki

Vivendi water is the backbone of Vivendi company according to Maud Barlow, with c. 295,000 people working just in their water department alone. So these companies came onto the scene first in France interestingly enough because France flirted with the privatization of water first then moved over to Great Britain under Margaret Thatcher and then with the World Bank backing them have moved all through the third world where they are failing every single solitary place that they are operating.

Manthan Adhyayan Kendra centre, based in the Narmada Valley, was founded by Shripad Dharmadhikary in October 2001 to research, analyse and monitor water and energy issues. Manthan’s two major themes of work are (a) large dams, irrigation and hydropower and (b) Privatisation and commercialisation of water and power in India. Dharmadhikary was a full time activist of the Narmada Bachao Andolan for 12 years, the mass organisation of people affected by large dams on the Narmada river in India. He was closely associated with the World Commission on Dams from its inception to its follow up UNEP-Dams and Development Project. He has recently completed a study on hydropower dam building in the Himalayas for International Rivers titled Mountains of Concrete. Other publications include Unravelling Bhakra, the report of a three year study (2001-12 through 2004-12) led by him of the Bhakra Nangal project. This study claims to completely overturn many of the popular notions and perceptions associated with the Bhakra Nangal Project. Currently, Manthan is working on the issues and impacts of privatisation of the water sector in India, including a study of the Public Private Partnership (PPP) model that is being pushed in the water sector, and the implications – financial, economic, social, environmental and access – of large scale privatisation of hydropower.

Professor Cathy Ryan, Department of Geoscience and the BScEnvironmental Science Program, University of Calgary “has inspired inspired an undergraduate research programin Environmental Science, as part of which students work in partnership with government, private sector and non-governmental collaborators to collect and analyze original data. The results of these studies are reported back to community stakeholders at enthusiastically-attended open houses.Meanwhile, Professor Ryan’s active contributions to local watershed groups (among them, Friends of Fish Creek, Elbow River WatershedPartnership, Nose Creek Watershed Partnershipand the Bow River Basin Council) are further evi-dence of a community engagement that extends beyond the normal call of academic duties. As a Board Member of the Bow River Basin Councilfrom 2004 to 2008, she provided technical advice and was an invited speaker and presenter on research activities that informed local landuse policymaking.The value of Professor Ryan’s input, and a furthermeasure of her community service, is manifest infrequent invitations to participate in regional,municipal, provincial and national workshops. Beyond simply sharing research findings, these presentations help to guide groundwater man-agement initiatives, including a successful 2006 municipal bylaw proposal for Environmental Setbacks for the Bow and Elbow Rivers. Currently, Professor Ryan is also the Assistant Program Director for the Central American WaterResources Management Network, a training net-work designed to better enable Central American universities and local communities to protect their water resources. Professor Ryan has published on Central American hydrogeology and water quality, in addition to her research in Alberta.Professor Ryan’s research interests include thefate of agricultural, human, and industrial wastes in groundwater and surface water. An examination of the impact of Calgary waste water on theBow River led in turn to a part-time sabbatical appointment as a Senior Water Policy Advisor to the City of Calgary. Professor Ryan subsequently received the City of Calgary Environmental Achievement Award in June 2008. Professor Ryan received her BASc in Geological Engineering from Queen’s University and her MSc and PhD (1994) in Earth Sciences from the University of Waterloo. She is also an adjunct professor in the Schulich School of Engineering, and has been a member of the Faculty Association since 1997 (University of Calgary 2009 awards).”

World Bank “The initial hopes for privatisation were so high that donor spending on infrastructure fell in the expectation that the private sector would take up the slack. For example, World Bank lending for infrastructure investment declined by 50 per cent during 1993-2002, with much of this directed towards preparing firms for privatisation. In 2002, Bank lending for water and sanitation projects, in particular, was only 25 per cent of its annual average during 1993-97. At the same time, the World Bank increased its support for private investment in utilities through its International Finance Corporation (IFC) and its Multilateral Investment Guarantee Agency (MIGA). While Bank lending to public electricity utilities dropped from about $2.9 billion in 1990 to only $824 million in 2001, its sector lending to private investors rose from $45 million to $687 million. Lending about $20 billion to water supply projects over the last 12 years, the World Bank has not only been a principal financier of privatisation, it has also increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“)

World Water Council 2009 Report

Water Poverty Index This paper provides discussion of ways in which an interdisciplinary approach can be
taken to produce an integrated assessment of water stress and scarcity, linking physical estimates of water availability with socioeconomic variables that reflect poverty, i.e., a Water Poverty Index to contribute to more equitable solutions for water allocation. A ‘‘Water Poverty Index’’ would enable progress toward development targets to be monitored, and water projects to be better targeted to meet the needs of the current generation, while securing water availability for the needsof future generations, as recommended in the Brundtland Report (WCED 1987). It is known that poor households often suffer from poor water provision, and this results in a significant loss of time and effort, especially for women. Sullivan provided a summary of different approaches to establish a Water Poverty Index by linking the physical and social sciences to address this issue (Sullivan, Caroline. 2002 “Calculating a Water Poverty Index.” World Development. 30:7: 1195–1210).”

Sir Richard Branson Founder and CEO, Virgin Group, (Ultra High Net Worth (UHNW) is on The Copenhagen Climate Council. He “has recently pledged all profits from his Virgin air and rail interests over the next 10 years to combating rising global temperatures. However, the estimated $3bn will be invested in Virgin Fuels. Much of the investment will focus on biofuels, an alternative to oil-based fuels made from plants. [...] “…in our particular case we are putting all the profit we have got from our airline business into trying to develop clean fuels so that hopefully one day we can actually have fuels that we can fly our plains by, that will not do any damage to the environment (Branson).”

Selected Watersheds

Bow River watershed

The San Joaquin River watershed originates in Martha Lake (California) and winds through California for 530 km flowing into the Sacramento-San Joaquin Delta and then San Francisco Bay. The basin area is 83,000 km2.

Selected Timeline of Events Related to Watersheds: Licensing Blue Gold or Managing a Human Right

1728 Mennonite brothers, the Bechtels, came to America in the early 1700s from Switzerland.

1846 German-born Heinrich Kreiser (aka Henry Miller) (Ultra High Net Worth (UHNW) immigrated to the United States arriving in California in 1850. The Miller and Lux company became the largest producer of cattle in California and one of the largest landowners in the United States, owning 1,400,000 acres (5,700 km2) directly and controlling nearly 22,000 square miles (57,000 km2) of cattle and farm land in California, Nevada, and Oregon. The Miller and Lux Corporation was headquartered in Los Banos, California, on the west side of the San Joaquin Valley. Miller played a major role in the development of much of the San Joaquin Valley during the late 19th century.

early 1900s The Alberta agricultural irrigation industry acquired massive water licences. Since then they have relied on the first-in-time, first-in-right licensing system which gave priority to whoever got water licences first (Klaszus 2009-06-25).. In Alberta, water has been traditionally allocated on the “first-in-time, first-in-right” principle for both surface and ground water. The older the licence, the higher that user is on the priority list. This allows the owners of the first licenses issued to access the full amount of water issued before newer licensees have access, regardless of use. Furthermore, water licenses granted under this principle have no expiry date. However, licenses issued under the Water Act are now issued for a fixed period. In a review of Canadian Water Politics (2008) Chris McLaughlin, CEO of the Niagara Escarpment Foundation agreed with the book’s insightful comments that “the historical path dependency of current water allocation privileges – first-in-time, first-in-right – continues to favour entrenched agricultural, industrial and commercial interests who had their water claims institutionalized in law well before the value of “sustainability” was recognized. The reality inhibits institutional change, especially the adaptation of institutions to evolving water conflicts and other shifts social-ecological realities (McLaughlin 2009:31).”

1913 Oil tycoon, John D. Rockefeller, who became the world’s first billionaire, was the wealthiest person in the modern history of the world. Ultra High Net Worth (UHNW)

1930s The Bechtel Six Companies, a joint venture of construction companies built The Hoover Dam, named after President Herbert Hoover). This hydroelectric dam on the Colorado River was at that time the largest civil engineering project ever undertaken.

1940s Friant Dam was constructed as part of the federal Bureau of Reclamation’s Central Valley Project in the 1940s. Its purpose was to divert the waters of the San Joaquin to maximize their use to help people, both to irrigate crops and to provide groundwater recharge. Most of the waters of the San Joaquin River are diverted into canals so that the river remains dry for a 17 miles (27 km) except when flood control requires additional releases from the dam.

1950s Using raw materials from watersheds, seas, forests and soils 80% of the global industrial growth since the 1880s occurred since 1950. Industrial production grew more than fifty-fold from 1887-1987. There was already a $13 trillion world economy in 1987 Our Common Future.

1963-10-22 Prime Minister Jawaharlal Nehru opened the 740-feet high Bhakra multipurpose hydroelectric project claiming to ushering an era of agriculture development, Nehru had aptly declared Bhakra ‘the temple of modern India’.

1966-08 Helsinki Rules on the uses of the Waters of International Rivers. 1966-08. Adopted by the International Law Association at the 52nd conference, held at Helsinki. Report of the Committee on the Uses of the Waters of International Rivers. London: International Law Association (1967).

1969 The world’s first ministry of environment was established in Japan in 1969.

1970 Canada introduced its Ministry of the Environment.

1971 Ontario introduced its Ministry of the Environment.

Late 1970s Most OECD countries had a comprehensive framework of laws and regulations concerning waste and pollution.

1987 “State of the environment: National reports.” Nairobi: UNEP.

1984-1987 The World Commission on Environment and Development reported that between October 1984. and April 1987: “The drought-triggered, environment-development crisis in Africa peaked, putting 36 million people at risk, killing perhaps a million; A leak from a pesticides factory in Bhopal, India, killed more than 2,000 people and blinded and injured over 200,000 more; Liquid gas tanks exploded in Mexico City, killing 1,000 and leaving thousands more homeless; The Chernobyl nuclear reactor explosion sent nuclear fallout across Europe, increasing the risks of future human cancers; Agricultural chemicals, solvents, and mercury flowed into the Rhine River during a warehouse fire in Switzerland, killing millions of fish and threatening drinking water in the Federal Republic of Germany and the Netherlands; An estimated 60 million people died of diarrhoeal diseases related to unsafe drinking water and malnutrition; most of the victims were children (WCED 1987).”

1987. The World Commission on Environment and Development (WCED) published their report entitled “Our Common Future,” known as the Brundtland Report.

1987 Report of the Expert Group Meeting on Strategic Approaches to Freshwater Management

1989 “[The] government of Argentina embarked on a major privatization program, and water and sewage were not excluded (Orwin 1999-08).” This contract [was] terminated in 1999. Problems with quality and cost prompted the new government, which had been in opposition when the contract was negotiated, to take the action. The major partner in the consortium, Vivendi, sued the region for compensation ( Orwin 1999-08).”

1992-04 Three Gorges Dam, so enormous it would become the world’s biggest dam, sparked the biggest political debate in Communist China’s history in the National People’s Congress, China’s annual parliament. Nearly one-third voted against the dam or abstained – an unprecedented figure (Coonan 2006-03-17.

1992 The degree of water privatization in Canada and the United States was minimal. While more than half of the American water utilities were privately owned, and while cities such as Indianapolis and Atlanta were increasingly contracting out their water and sewage services, public utilities remained the norm in large cities; in 1992, they served 85 per cent of the U. S. population ( From Orwin 1999-08).

Early 1990s “[C]ritics in both the public and the private sector had questioned the appropriateness of a regulatory approach based on what was called “the old system of command and approaches such as economic instruments or voluntary measures. At the same time, governments were facing strong fiscal pressures to reduce the cost of their operations in order to stop the downward spiral of growing deficits and debt. These fiscal pressures were given ideological impetus by political parties that favored deregulation, downsizing and privatization (Ministry of the Environment research 2000).”

1992 Sullivan (1992) called for the political will and institutional acceptance so that individual countries would be enable to produce their own integrated assessments of water poverty. She recommended the use of participatory action research at the community level to involve and educate local people in terms of their water needs enabling them to better understand, communicate and negotiate with policy makers. “By providing information about household welfare, and water stress at the household and community level, this locally generated data can form the core of the Water Poverty Index (WPI).

1993 “The initial hopes for privatisation were so high that donor spending on infrastructure fell in the expectation that the private sector would take up the slack. For example, World Bank lending for infrastructure investment declined by 50 per cent during 1993-2002, with much of this directed towards preparing firms for privatisation. In 2002, Bank lending for water and sanitation projects, in particular, was only 25 per cent of its annual average during 1993-97. At the same time, the World Bank increased its support for private investment in utilities through its International Finance Corporation (IFC) and its Multilateral Investment Guarantee Agency (MIGA). While Bank lending to public electricity utilities dropped from about $2.9 billion in 1990 to only $824 million in 2001, its sector lending to private investors rose from $45 million to $687 million. Lending about $20 billion to water supply projects over the last 12 years, the World Bank has not only been a principal financier of privatisation, it has also increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“)

1994 Ontario passed the Environmental Bill of Rights.

1994 In Ecuador the Inter-American Development Bank (IDB) giving a grant to the government to set up the necessary reforms of pricing and regulatory procedures to encourage further privatization in the water and sewage sector. By 1999 The government of Ecuador planned on privatizing all water utilities, for the sake of financing further investment ( Orwin 1999-08).

1995-06 Mike Harris as Premier of Ontario , declared a “Common Sense Revolution” in which he announced that Ontario was “open for business” promised to cut red tape and get government (particularly the Environment ministry) “out of the face” of business. Over the next two years, the budget of Moe was cut nearly 50% and the staff was reduced by more than 40% . The impact of these cuts on the capacity of Moe to serve the public interest in relation to the taro operations was cited in print media coverage of the controversy (Ministry of the Environment (MOE) research 2000).”

1995-11 The World Bank offered large loans to Bogota, Columbia to convert the dysfunctional municipal monopoly into a privatized utility.

Postel, S. L. (1996). Dividing the waters: food security, ecosystem health, and the new policies of scarcity. Worldwatch Paper No. 132, P29. Washington, DC:
Worldwatch Institute.

1996-12 The government of Chili “introduced a bill to fully privatize state-run water works, the first such legislation in South America. It faced strong opposition even within the ruling coalition but the bill was passed with some compromises, including a stipulation that the government must maintain 35 per cent equity, with some of the remainder being owned by the company employees. In April 1997, the government announced its intention to privatize wastewater treatment as well. The privatization package was finally approved in January 1998, and 55 per cent of the utilities involved were expected to be privatized by March 1999. ( From Orwin 1999-08).

1997-03 The 1st World Water Forum was held in Marrakech, Morocco.

1997-07 La Paz and El Alto, Bolivia “turned their water and sewerage systems over to the French company Lyonnaise des Eaux in July 1997, despite large protests and agitations by the opposition, which periodically paralysed both municipalities. Interestingly, the coalition in favour of the agreement included not only the governments and the water companies but the labor unions as well, who helped ensure the completion of the process. Lyonnaise des Eaux own[ed] 34 per cent of the new company, while a combination of Bolivian and Argentine directors own[ed] the rest ( Orwin 1999-08).”

1998 Postel, S. L. 1998. “Water for food production: will there be enough in 2025?” Biosciences. 28:629–637.

1998-09-17 Orwin’s report on the privatization of water reveals his enthusiasm for the privatization of water and sewage systems. Vivendi and Suez-Lyonnaise des Eaux joined to vie for the concession for Rio de Janeiro’s water and sewage systems. At that time some of Brazil’s municipal governments that own[ed] the water and sewage systems sought private sector help. Aguas de Limeira, a joint venture between the French conglomerate Lyonnaise des Eaux and Companhia Brasileira de Projectos e Obras, provided water and sanitation to the 250,000 people of the Sao Paulo suburb of Limeira. Degremont, Lyon built two water purification plants in Sao Paulo: one for Sao Miguel (population 700,000) and one for Novo Mondo (population 1,000,000) [...] Vivendi acquired 30% shares in Sanepar, which serves seven million people in the state of Parana. ( Orwin 1999-08).”

1998 Author Shripad Dharmadhikary writes: “the Bank’s process of generating knowledge is flawed and exclusionary. It excludes common people, and their traditional expertise and knowledge. The Bank’s knowledge is frequently created by highly paid, often international, consultants, who have little knowledge of local conditions. The knowledge creation is mostly directed towards arriving at a pre-determined set of policies – privatisation and globalisation. This knowledge creation is often selective, in that information, evidence or experiences that do not support these pre-determined outcomes are ignored. The book is based on case studies of the Indian water sector review in 1998, the Bank-support Public-Private Infrastructure Advisory Facility (see Update 56), water privatisation in Delhi, and a project for water restructuring in the Indian state of Madhya Pradesh. Dharmadhikary finds that “[the Bank's] policies have cut people’s access to water, led to environmental destruction, resulted in displacement and destitution of people, stifled better options for water resource management, have had huge opportunity costs, and privileged corporate profits over social responsibility and equity.”

1999 “In Canada, virtually all water and sewage systems [were] publicly owned and operated. However, privatization [was] very slowly getting off the ground in Ontario, where private companies serve[d] 500,000 people,(2) approximately 4.5 per cent of the provincial population. There [was] also some scattered private participation in Alberta and British Columbia, and privatization [was] being considered by two of the larger Maritime cities ( Orwin 1999-08).”

1999 The Inter-American Development Bank approved a $70-million loan to reform regulatory systems so as to encourage private sector involvement in Bolivia. Bolivia had begun “major restructuring of the water sector in 1991, which involved the transfer of powers from the central level to the municipal level ( Orwin 1999-08).”

1999 As the water crisis deepens countries are depleting groundwater resources accumulated over thousands of years. In India alone the water table dropped by as much as 3m in 1999. As groundwater is exploited, water tables in parts of China, India, West Asia, the former Soviet Union and the western United States were already dropping by 2004 according to a special 2004 report (Kirby 2004-10-19).

2000-03 The Second World Water Forum in The Hague, The Netherlands “generated a lot of debate on the Water Vision for the Future and the associated Framework for Action, dealing with the state and ownership of water resources, their development potential, management and financing models, and their impact on poverty, social, cultural and economic development and the environment. The Ministerial Declaration identifed meeting basic water needs, securing food supply, protecting ecosystems, sharing water resources, managing risks, valuing water and governing water wisely as the key challenges for our direct future. 15,000 people were involved in the Vision related discussions; there were 5,700 participants in the Forum; there were 114 ministers and official of 130 countries at the Ministerial Conference; 500 journalists; 32,500 visitors at the World Water Fair.”

2000 “The UN-backed World Commission on Water estimated in 2000 that an additional $100bn a year would be needed to tackle water scarcity worldwide (Kirby 2004-10-19).”

2000-04 Water Sciences Branch, Water Management Division, Alberta Environmental Service Limnologist Anne-Marie Anderson reported that the lake levels of Muriel Lake (northeast of Edmonton and close to the hub of oil sands activity, including Imperial’s Cold Lake operation) were monitored since 1967. The lake reached its maximum in 1974, a very wet year but since then water levels declined steadily, a drop in lake level of nearly 3 m in 2000 from 6.6 m in 1962. As a result of the drop in lake levels, shoreline width has increased considerably. This amounts to perhaps a 50 to 60% loss in the volume of water. There are also concerns that the decline in water levels is resulting in a deterioration of lake water quality and fishing. (Anderson 2000-04). Dr. Bill Donahue of the University of Alberta’s Environmental Research and Studies Centre said his research at Muriel Lake suggested that the oil companies’ appetite for water was having a long-term effect. Although heavy rains in 1997 replenished many other lakes in the area, but the level of Muriel Lake is falling again. Mr. Donahue said the addition of chemicals to water used in oil recovery and the fact that much of the recycled water ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle (Simon 2002-08-09)..” “The Muriel Lake Basin Management Society was formed in 1999 in response to these severe losses of water. In 2002, Dr. Bill Donahue, with the support of Dr. Dave Schindler, the Gordon Foundation, the Natural Sciences and Engineering Council of Canada, and ERSC, began a study to determine the local and regional water budgets. Drs. Bill Donahue and Alex Wolfe also began a study of the history of water quality, biology, and climate change in Muriel Lake.”

2000-03 Goals set forth at the Millennium Summit of the United Nations in New York.

2001 The International Freshwater Conference was held in Bonn.

2002 The World Summit on Sustainable Development was held in Johannesburg.

2002-02-15 President Bush pledged to reduce “greenhouse gas intensity” by 18 % from 2002 to 2012. New York Times journalist Paul Krugman cautioned however that the algorithm to calculate “greenhouse gas intensity” divides “greenhouse gas intensity” by the gross national product GDP which by most forecasts will expand by 30% from 2002 to 2012. This proposal then will allow a substantial increase in (mainly carbon dioxide, released by burning fossil fuels) that cause global warming. Krugman argued that the Bush administration exaggerated the economic costs such as the destruction of millions of jobs if the Kyoto Protocol’s environmental regulations were implemented. In 2001 Dick Cheney claimed that environmental rules had caused a shortage of refining capacity.(Krugman 2002-02-15)

2002-08-09 Western Canada had its worst drought in decades and environmentalists, farming groups and others called for tighter control of the oil industry. New York Times Business journalist claimed that Alberta’s oil companies use nearly half as much water as the million people in Alberta’s commercial center, Calgary. [...] The energy industry makes up about a quarter of Alberta’s economy. Processes of extracting oil from conventional wells and from oil sands are water-intensive: c. 10 barrels of water are needed to extract one barrel of oil. The Canadian Association of Petroleum Producers claimed that about 55% of Alberta’s oil output, totaling 1.55m barrels a day, is now brought to the surface with the help of enhanced water-assisted methods. The water used in the oil sands “ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle(Simon 2002-08-09).

2002-11-27 Water was formally recognized as a human right for the first time when the United Nations Committee on Economic, Social and Cultural Rights adopted the ‘General Comment’ on the right to water, and described the State’s legal responsibility in fulfilling that right. “The human right to drinking water is fundamental to life and health. Sufficient and safe drinking water is a precondition for the realization of human rights.” (UNESCO 2002-11-27).

2003-03 The 3rd World Water Forum held in Kyoto, Shiga and Osaka, Japan “took the debate a step further also within the context of the new commitments of meeting the goals set forth at the Millennium Summit of the United Nations in New York (2000), the International Freshwater Conference in Bonn (2001) and the World Summit on Sustainable Development in Johannesburg (2002). The large number of participants ensured that a variety of stakeholders and opinions were represented aiming at accepting differences and finding a common way forward.” There were 24,000 participants, 1000 journalists and 130 ministers in attendance.

2004 A federal judge ruled the U.S. Bureau of Reclamation in violation of California law for not letting enough water flow which has resulted in the depletion of the historic Chinook salmon population on the San Joaquin River which it is claimed, once supported the southernmost salmon run in North America.

2004-10-19 BBC News Online environment correspondent, Alex Kirby, explored fears of an impending global water crisis. In 2004 1/3 of the world’s population were already living in water-stressed countries. By 2025, this is expected to rise to two-thirds. His report includes some potential solutions including new technologies that could clean up polluted waters and so making more water useable, more efficient agricultural water-use practices, drought-resistant plants, collecting rainfall, dams, desalinisation. Many of these solutions would require huge quantities of affordable, useable energy sources which also poses an enormous challenge. Kirby concluded, “We have to rethink how much water we really need if we are to learn how to share the Earth’s supply (Kirby 2004-10-19).”

2005-02-16 The Kyoto Protocol climate change conference leading up to the Kyoto Accord was first debated in Kyoto, Japan in December 1997, to “establish a legally binding international agreement, whereby all the participating nations commit themselves to tackling the issue of global warming and greenhouse gas emissions.” The objective was to stabilize and reconstruct “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” The Kyoto negotiations built upon the research of The Intergovernmental Panel on Climate Change (IPCC) which predicted an average global rise in temperature of 1.4°C (2.5°F) to 5.8°C (10.4°F) between 1990 and 2100. The agreement finally came into force on 16 February 2005 when following ratification by Russia ratified it on 18 November 2004. As of 14 January 2009, 183 countries and the European Community ratified the agreement. The Kyoto Protocol include “commitments to reduce greenhouse gases that are legally binding; implementation to meet the Protocol objectives, to prepare policies and measures which reduce greenhouse gases; increasing absorption of these gases and use all mechanisms available, such as joint implementation, clean development mechanism and emissions trading; being rewarded with credits which allow more greenhouse gas emissions at home; minimizing impacts on developing countries by establishing an adaptation fund for climate change; accounting, reporting and review to ensure the integrity of the Protocol; compliance by establishing a compliance committee to enforce compliance with the commitments under the Protocol.” wiki

2005-06-08 John Vidal, environment editor for the Guardian based on according to US State Department papers, claimed that pressure from ExxonMobil, the world’s most powerful oil company, and other industries, influenced President George Bush in his decision to not sign the Kyoto global warming treaty(Vidal 2005-06-08).

2005-06-09 BBC reported that Philip Cooney, Chief of Staff for the White House Council on Environmental Quality, “which helps devise and promote the administration’s policies on environmental issues [...] removed or adjusted descriptions of climate research that had already been approved by government scientists.” According to the New York Times Cooney “made dozens of changes to reports issued in 2002 and 2003, and many appeared in final versions of major administration climate reports.” Rick Piltz formerly from the office of co-ordinates U. S. government climate research resigned and reported the watered down reports to the New York Times. Philip Cooney, a lawyer by training has no scientific education. He was a lobbyist at the American Petroleum Institute, the largest oil industry trade group. He is a lawyer by training, with no scientific background. (BBC 2005-06-09).

2006-03-22 The 4th World Water Forum was held in Mexico City with seven days of debates and exchanges. Close to 20,000 people from throughout the world participated in 206 working sessions where a total of 1600 local actions were presented. Participants included official representatives and delegates from 140 countries out of which 120 mayors and 150 legislators, 1395 journalists experts, NGOs, companies, civil society representatives were involved. The Ministerial Conference brought together 78 Ministers.

2006-03 Uruguay, Cuba, Venezuela, Ecuador and other countries drafted a counter declaration at the 2006 World Water Forum when the official ministerial declaration did not include water as a human right (Karunananthan 2009-03-18).

2006-03 According to an article by (Coonan 2006-03-17, environmentalists viewed the 2006 completion of the Three Gorges dam on the Yangtze River in China, the world’s biggest, as a monstrous natural catastrophe. Between one to two two million people were moved because their homes were flooded by the rising water of the reservoir. Environmental activist and journalist Dai Qing, the most famous opponent of Three Gorges dam, wrote a book entitled Yangtze! Yangtze!, for which she was imprisoned for 10 months in a maximum security prison and faced with the treat of the death sentence. She opposed the dam because of the lack of public debate, the lack of independent analysis. “Further along the river, construction of Xiloudu dam has begun, which will be the third biggest in the world when it is finished. Three other dams are in the exploration stage near Xiloudu – including one that will flood the beautiful Tiger Leaping Gorge in Sichuan province. All four of these dams together will produce more electricity than the Three Gorges dam (Coonan 2006-03-17.”

2000 Oscar Olivera’s article in The Guardian described how the water wars began in Cochabamba, Bolivia when Bechtel, a large multinational, came there with the intention of taking control of the water supply and privatizing it in 2000.Olivera 2006-07-19.”

2006-08-31 The Alberta provincial government under Premier Stelmach closed southern Alberta river basins to new water licences when they realized they had over-allocated water. Some growing municipalities with junior licences began the long and laborious process of negotiating transfers water licenses from willing irrigators and other senior licensees (Klaszus 2009-06-25).. “Alberta Environment announced the province will no longer accept new water licence applications for the Bow, Oldman, and South Saskatchewan sub-basins. Water allocations may still be obtained through water allocation transfers. The newly minted water management plan, the first of its kind in Alberta, will ban new demands from the three rivers, which are part of the South Saskatchewan River basin that feeds water to Calgary, Red Deer, Lethbridge, Brooks and Medicine Hat (Alberta Water).”

2006-2009 According to Alberta Environment about 30 water licence transfers have occurred between junior and senior licensees since 2006 when Premier Stelmach closed southern Alberta river basins to new water licences (Klaszus 2009-06-25).

2007 The Province of Alberta’s budget showed a surplus of $8.5 billion. Alberta is the economic engine of Canada but it is also the country’s worst industrial greenhouse gas emitter. Calgary-based EnCana alone earned profits of $6.4 billion, a record-breaking sum. An energy war is predicted between Eastern and Western Canada (Kohler 2007-10-08).

2007-10-08 Journalist Kohler reviewed William Marsden’s (2007) book entitled em>Stupid to the Last Drop in which outlined the environmental threats posed by Alberta’s energy industry, claiming that the [province of Alberta were] going to be the “architects of their own destruction.” “Left unfettered, Alberta’s energy sector will, by the end of this century, transform the southern part of the province into a desert and its north into a treeless, toxic swamp. Driven both by global warming and oil and gas developments, temperatures in Alberta will soar by as much as eight degrees. The Athabasca River will slow to a trickle, parching the remainder of the province’s forests and encouraging them to burst into flame, generating vast quantities of CO2. (Kohler 2007-10-08).”

2007 Despite comprising only a fraction of Canada’s households, the wealthiest families control almost half the investable assets: $1.3-trillion of $2.4-trillion. The “vast majority” of that $1.3-trillion held by wealthy families is controlled by the decamillionaires. They are the ones with “family offices.” Tim Cestnick, of WaterStreet Family Wealth Counsel, set the threshold for High New Worth HNW as $5-million to $20-million in net worth and for Ultra High New Worth UHNW at $20-million-plus. Bederman classified households with $1-million to $5-million as “mass millionaires.” There were 335,000 such households in Canada in 2007. There were 60,000 “penta millionaires” (with net worths of $5-million to $10-million) and 20,000 decamillionaire households with more than $10-million in 2007. Despite comprising only a fraction of Canada’s households, the wealthiest families control almost half the investable assets: $1.3-trillion of $2.4-trillion. The “vast majority” of that $1.3-trillion held by wealthy families is controlled by the decamillionaires. They are the ones with “family offices “Chevreau, Jonathan. 2007-05-14).

2007-10-03 Funded by a $30 million grant from the Government of Alberta through Alberta Ingenuity, (whose President and CEO is Dr. Peter Hackett) the Alberta Water Research Institute (chaired by Dr. Lorne Taylor, the former Minister of Alberta Environment) claim they will fund innovative, practical water research that will “tackle some of Alberta’s most pressing water-related environmental issues, including habitat decline, biodiversity loss, water flow and water quality. [T]he research will involve a multi-disciplinary approach — including biologists, engineers, economists and other social scientists — to provide the knowledge water users, managers, industry, policy makers and consumers to help them make informed choices. [T]he Alberta Water Research Institute works in collaboration with The Alberta Energy Research Institute (AERI).” Their work focusses on Water Treatment and Recycling; Oilsands Tailings Treatment with water recycling; reducing water use in electrical power generation

2007-11-07 T. Boone Pickens engineered one of a shrewd takeover of an 8 acres stretch of scrub-land near Amarillo, Roberts County, Texas. The acquisition of this land was “central to Pickens’ plan to create an agency to condemn property and sell tax-exempt bonds in the search for one of his other favorite commodities: water. Approval of the water district was all but certain as Texans voted Tuesday in state and local elections. By law, only the two people who actually live on the eight acres will be allowed to vote: the manager of Pickens’ nearby Mesa Vista ranch and his wife. The other three owners, who will sit on the district’s board, all work for Pickens. Pickens “has pulled a shenanigan,” said Phillip Smith, a rancher who serves on a local water-conservation board. “He’s obtained the right of eminent domain like he was a big city. It’s supposed to be for the public good, not a private company.” Pickens and his allies say no shenanigans are involved. Once the district is created, the board will be able to issue tax-exempt bonds to finance construction of Pickens’ planned 328-mile, $2.2 billion pipeline to transport water from the Panhandle across the prairie to the suburbs of Dallas and San Antonio. If Pickens can’t find a buyer for the bonds or for his water – and he hasn’t yet – he might buy the bonds himself to jump-start the project, said his Dallas-based lawyer, Monty Humble of Vinson and Elkins. The board will spend about $110 million to buy the right-of-way for the pipeline, using the power of eminent domain to acquire property if necessary, Humble said. Still, Pickens faces obstacles. To help pay for construction, he plans to piggyback wind power on the water infrastructure. He plans wind farms on the ranchland and wants to run electricity cables along the right-of-way of Mesa’s water pipeline. All told, the wind and water project is expected to cost more than $10 billion. Pickens said he has about $100 million invested so far. “This is a $10 billion project,” he said in an interview. “It better be profitable.” Most of all, he needs a group of confirmed buyers for his water. That’s in part because of political resistance to his plan for acquiring water rights. Several Dallas-area water districts have refused to sign up. “We have real concerns about private control of water,” said Ken Kramer, director of the Texas Sierra Club. “Water is a resource, yet in some respects it is a commodity. It’s as essential to human life as air. That puts water in a different class.” John Spearman Jr., a Roberts County rancher and chairman of the Panhandle Groundwater Conservation District, is one of many local critics who contend that Pickens’ water play could upset conservation efforts and seeks to profit from shortages of a vital resource. “He has the legal authority to do it,” Spearman says. “We can’t stop him (Woellert 2007-11-07.”

2008-06-12 In 2008 he introduced “The Pickens Plan, [which called] for the United States to cut its dependence on foreign oil by more than one-third by making natural gas and wind power much bigger parts of America’s energy supply.” (CBC 2009-06-17.) “T. Boone Pickens [...] owns more water than any other individual in the U.S. and is looking to control even more. He hopes to sell the water he already has, some 65 billion gallons a year, to Dallas, transporting it over 250 miles, 11 counties, and about 650 tracts of private property. The electricity generated by an enormous wind farm he is setting up in the Panhandle would also flow along that corridor. As far as Pickens is concerned, he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” Business Week

2008-05-08 The U.S. Senate committee gave its approval to restore a 240 km stretch of the dried-up San Joaquin River and the historic Chinook salmon run spawning area. The settlement agreement, supported by almost every member of the California congressional delegation, anticipated spending as much as $800 million U.S. with farmers paying c. $330 million, and the rest from California bonds and the federal government.

2008-06 T. Boone Pickens a Texas oil tycoon, who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets and he is now showing a great interest in Alberta. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their water supply. He is persistent and worked for decades to change laws in his favour in the Canada River watershed in Texas. Pickens donated $2.25 million in 2006 to establish the Boone Pickens Centre for Neurological Science and Advanced Technologies at the the Hotchkiss Brain Institute, University of Calgary, which was created by Pickens’ long-time friend Calgary Flames co-owner Harley Hotchkiss with a gift of $15 million in 2004. In June 2008 Pickens donated another $25 million to research at the Hotchkiss Brain Institute which is the largest donation ever given to the University of Calgary by a single person and the only philanthropic donation Pickens has made outside the U.S. Pickens, who has an estimated net worth of $3 billion, has given away $700 million from 2003 to 2008. Pickens lived in Calgary briefly in the 1960s working as a geologist ( “CBC 2008-06-20).”

2008-09-26 Molina and Chowla argued that the World Bank has been a principal financier of privatisation and has increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“). The initial hopes for privatisation have faded as governments work towards de-privatization of water services (Molina and Chowla 2008-09-26.“)

2009-03-18The Council of Canadians, Our Water Commons, Food and Water Watch and other organizations held a panel at the official World Water Forum to launch a report highlighting success stories of communities working to protect the water commons through a communitarian approach to water management and calling for the recognition of water as a human right.Karunananthan 2009-03-18. .”

2009-03-16 to 2009-03-22 The world’s biggest water-related event, with over 25,000 participants, the Fifth World Water Forum was held in Istanbul, Turkey on the theme of “Bridging Divides for Water.”

2009-06 Jim Webber, general manager of the Western Irrigation District wants the province to respect the first-in-time, first-in-right licensing system to prevent an economic disaster for the 400+ farms east of Calgary and a handful of communities, including Strathmore (Klaszus 2009-06-25).

2009-03-29 The United States Congress appropriated $88 million to help fund the restoring of salmon spawning grounds as part of a bill providing wilderness protection to more than 2 millions acres in nine states.

2009-06-29 In California the debate has become increasingly polarized between agriculture and environmental interests over the distribution of water in the face of a three year drought that has left 450,000 acres unplanted in California as well as causing the third collapse of the salmon industry as the San Joaquin River spawning grounds dried up. (In 2004 a federal judge ruled the U.S. Bureau of Reclamation in violation of California law for not letting enough water flow which has resulted in the depletion of the historic Chinook salmon population on the San Joaquin River which it is claimed, once supported the southernmost salmon run in North America. ) In Fresno County alone, normally the US most important agriculture county, farmers cannot plant in 262,000 acres because of a lack of water.Cone 2009-06-29).

CBC. 2009-06-17. “Texas oil billionaire eyes Alberta wind power.”

Notes

1. March 22nd is World Water Day

2. Since moving to Calgary, Alberta we have been following our source of city water. The Bow Glacier was stunningly beautiful last August. But like glaciers worldwide it is receding. The Elbow River which also flows through Calgary was very high this year even though much of Alberta’s farmland was experiencing a devastating drought. We’ve installed rainbarrels, planted drought-resistance perennials, overseeded our water-thirsty Kentucky grass with Sheep’s Fescue and generally tried to be more water wise, I am following water stories. Alberta has four major rivers tha drain most of the province: 1. The Peace and 2. Athabaska rivers drain the northern half of Alberta with their waters joining water from Lake Athabaska to form Alberta’s largest river, the Slave River, which flows into the Northwest Territories and on to the Arctic Ocean; 3. The North Saskatchewan River winds through the foothills and parkland of central Alberta. 4. The South Saskatchewan River, which is fed by three rivers that arise in the mountains, makes it way through dry farmland and prairie. The North and South Saskatchewan rivers join in the province of Saskatchewan and become the Nelson-Churchill system, and their waters eventually reach Hudson Bay There is also the smaller Beaver River, which flows through the heart of the Lakeland Region and then into the Churchill system and the Milk River, which passes briefly into Alberta
from Montana before returning south to flow finally to the Mississippi River and the Gulf of Mexico (Mitchell, Prepas and Crosby 1990:3) For a detailed map and more information visit Alberta Water

2. Moore Lake, c. 280 km northeast of Edmonton is a very popular recreational lake in Alberta’s Lakeland Region. Moore Lake is part of the Beaver Lake watershed. It is a headwater lake with outlets from the east shore into Hilda and Ethel Lakes and eventually into the Beaver River (which flows through the heart of the Lakeland Region and then into the Churchill system and the Milk River, which passes briefly into Alberta from Montana before returning south to flow finally to the Mississippi River and the Gulf of Mexico (Mitchell, Prepas and Crosby 1990:275).” “Moore Lake is underlain by the Muriel Lake Aquifer. In [1990] the principal water sources for regional water needs were the aquifers and not the lake. The largest water users in the area [were] the oil sands industries. Oil sands and petroleum and natural gas leases in the Moore drainage basin are held by several companies, including Esso Resources and Husky Oil. The oil sands permits allow the companies to test and set up drilling operations for subsurface oil deposits, including those under the lake surface. There are no signficant gas pools in the area. As a result of Alberta Environmental studies of the water resources in the Cold Lake-Beaver River basin in the early 1980s, a long-term plan for water resources management in the Cold Lake region was adopted by the government in 1985. Under the provisions of this plan, Moore Lake will not become a major water supply for the oil industry. Major industrial water users will be required to obtain their water from a pipeline from the North Saskatchewan River (Mitchell, Prepas and Crosby 1990:275).”

3. History of Moore Lake and the Beaver River. “Woodland Cree occupied the region when the fur traders first arrived. The Beaver River, to the south of Moore Lake, was part of a major fur trade route from Lac Isle-a-la-Crosse, Saskatchewan to the Athabaska River. The first fur-trading post in the area was Cold Lake House. It was established by the North West Company in 1781 on the Beaver River near the present-day hamlet of Beaver Crossing (Mitchell, Prepas and Crosby 1990:273).”.” “Moore Lake is underlain by the Muriel Lake Aquifer. In [1990] the principal water sources for regional water needs were the aquifers and not the lake. The largest water users in the area [were] the oil sands industries. Oil sands and petroleum and natural gas leases in the Moore drainage basin are held by several companies, including Esso Resources and Husky Oil. The oil sands permits allow the companies to test and set up drilling operations for subsurface oil deposits, including those under the lake surface. There are no signficant gas pools in the area. As a result of Alberta Environmental studies of the water resources in the Cold Lake-Beaver River basin in the early 1980s, a long-term plan for water resources management in the Cold Lake region was adopted by the government in 1985. Under the provisions of this plan, Moore Lake will not become a major water supply for the oil industry. Major industrial water users will be required to obtain their water from a pipeline from the North Saskatchewan River (Mitchell, Prepas and Crosby 1990:275).”

4. For amusement I am also reading an entertaining science fiction called Watermind that begins with a foaming journey of nano technology from Alberta down the Milk River flowing down the Mississippi to the Gulf of Mexico collecting toxic waste and data all along the way.

5. Western-style lifestyles and diets which are heavy on beef require much more water than healthier cereal or pulse-based diets (1 kg of grain-fed beef needs at least 15 cubic metres of water, while a 1 kg of cereals needs only up to three cubic metres). Pulse crops (including Dry beans, Kidney bean, haricot bean, pinto bean, navy bean, Lima bean, butter bean, Azuki bean, adzuki bean, Mung bean, golden gram, green gram, Black gram, Urad, Scarlet runner bean, Dry peas, Garden pea, Chickpea, Garbanzo, Bengal gram Black-eyed pea, blackeye bean, Lentil) commonly consumed with grain, provide a complete protein diet. Pulses are 20 to 25% protein by weight, which is double the protein content of wheat and three times that of rice. Pulses are sometimes called “poor man’s meat”. Pulses are the most important dietary predictor of survival in older people. In the Seven Countries Study legume consumption was highly correlated with a reduced mortality from coronary heart disease.

6. This Google Map below (a work in progress) traces some of the areas of concern regarding our watersheds where substantial control concentration of access, rights and strategic assets are quietly being acquired by individuals or individual families. The most troubling of these includes T. Boone Pickens who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets and he is now showing a great interest in Alberta. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their water supply. He is persistent and worked for decades to change laws in his favour in the Canada River watershed in Texas.

7. Tim Cestnick, founder of WaterStreet Family Wealth Counsel, in 2007 set the threshold for High Net Worth HNW as $5-million to $20-million in net worth and for Ultra High Net Worth UHNW at $20-million-plus.

My Google Map: Blue Gold

Selected Bibliography

Anderson, Anne-Marie. 2000-04. “An Evaluation of Changes in Water Quality of Muriel Lake.” Limnologist, Water Sciences Branch, Water Management Division, Environmental Service.

Beck, Ulrich. 1992. Risk Society.

Barlow, Maud; Blue Gold: The Fight to Stop the Corporate Theft of the World’s Water.

Barlow, Maud. 2004-03. Maude Barlow, CBC Interview. CBC.

CBC. 2008-06-20. “Billionaire hands U of C unexpected $25M gift.”

Brownsey, Keith. “Enough for Everyone: Policy Fragmentation and Water Institutions in Alberta” in Sproule-Jones, Mark; Johns, Carolyn; Heinmiller, B. Timothy. 2008-11-20. Canadian Water Politics: Conflicts and Institutions. McGill-Queen’s University Press. pp. 133-156.

CBC. 2009-06-17. “Texas oil billionaire eyes Alberta wind power.”

CBC. 2009-03-06. “Wind power: The global race to harness wind.”

Clarke, Tony; Barlow, Maude. The Battle for Water.

Cone, Tracie. AP. 2009-06-29. “Battle over water heats up in drought-stricken California.” USA Today.

Coonan, Clifford. 2006-03-17. “The dammed: Environmentalists watch and wait for opening of world’s largest dam.” The Independant.”

Dillon, Sam. 1998-01-28. “Mexico City sinking into depleted aquifer.”

Government of Ontario. 1998-03-09. “Government’s role in operation of water and sewage treatment systems to be reviewed.” Office of Privatization News Release. Toronto: Queen’s Park.

Helsinki Rules on the uses of the Waters of International Rivers. 1966-08. Adopted by the International Law Association at the 52nd conference, held at Helsinki. Report of the Committee on the Uses of the Waters of International Rivers. London: International Law Association (1967).

Idelovitch, Emanuel, and Ringskog, Klas. 1995-05. Private Sector Participation in Water Supply and Sanitation in Latin America. Washington: The International Bank for Reconstruction and Development/The World Bank.

Kirby, Alex. 2004-10-19. “Water scarcity: A looming crisis?” BBC.

Klaszus, Jeremy. 2009-06-25.“Alberta poised to expand water market: Showdown looms as province reviews licensing system.” News.

Karunananthan, Meera. 2009-03-18. “Access to Sanitation Reserved for the VIPs at World Water Forum.” AlterNet.

Kohler, Nicholas. 2007-10-08. “Doomsday: Alberta stands accused: A huge fight between East and West — over the oil sands — is just starting.” Macleans.

Krugman, Paul. 2002-02-15. “Ersatz Climate Policy“. New York Times.

Marsden, William. 2007. Stupid to the Last Drop: How Alberta Is Bringing Environmental Armageddon to Canada (And Doesn’t Seem to Care).

McGillivray, Mark. 2005. Inequality, Poverty and Well-being. Helsinki, Finland. Palgrave Macmillan.

McLaughlin, Chris. 2009. “Instituting Change: Book Reviews.” Alternatives Journal. 35:34: 31.

Mitchell, Patricia ; Prepas, Ellie E.; Crosby, Jan M. Eds. 1990. Atlas of Alberta Lakes. University of Alberta Press.

Molina, Nuria; Chowla, Peter. 2008-09-26. “The World Bank and water privatisation: public money down the drain.”

Olivera, Oscar. 2006-07-19. “The voice of the people can dilute corporate power.” The Guardian.

Orwin, Alexander. 1999-08. “The Privatization of Water and Wastewater Utilities: An International Survey.” Environment Probe.

Postel, S. L. 1996. “Dividing the waters: food security, ecosystem health, and the new policies of scarcity.” Worldwatch Paper No. 132, P29. Washington, DC: Worldwatch Institute.

Postel, S. L. 1998. “Water for food production: will there be enough in 2025?” Biosciences. 28:629–637.

Sen, A. 1995. “Mortality as an indicator of economic success and failure.” Discussion paper 66. London School of Economics and Political Science.

Simon, Bernard. 2002-08-09. “Alberta Struggles to Balance Water Needs and Oil.New York Times.

Sproule-Jones, Mark; Johns, Carolyn; Heinmiller, B. Timothy. 2008-11-20. Canadian Water Politics: Conflicts and Institutions. McGill-Queen’s University Press.

Sullivan, Caroline. 2002. (“Calculating a Water Poverty Index.”World Development. 30:7: 1195–1210.

Vidal, John. 2005-06-08. “Revealed – how oil giant influenced Bush“. The Guardian.

The World Commission on Environment and Development (WCED). 1987.”Our Common Future.” Oxford: Oxford University Press.

Woellert, Lorraine. 2007-11-07. “Pickens makes a multibillion-dollar water play: Pipeline would transport Panhandle water to big-city suburbs.” Bloomberg News.

Chevreau, Jonathan. 2007-05-14. “Truly Affluent Require Wider Type of Service.” Financial Post.


Haraway’s work examines how ideology informs science both through legitimization of claims and the intrusion of values into ‘scientific’ facts. In her introduction Haraway describes how the concepts of love, power and science are intricately intertwined in the constructions of nature in the late twentieth century. In the eighteenth century Linneaus named the order of Primates. Since then in western life sciences, ‘nature’ has encompassed themes of race, sexuality, gender, nation, family and class. Projects of colonialism developed ideologies of the control of nature and the civilization of native cultures (Haraway 1989:1).

The concept of ‘civilization’ as a benchmark for evaluating the evolution of culture had been an accepted and integral part of colonialism. In the late nineteenth and early twentieth century the control of nature by technology, the machine, had become ambiguous. Nature, a potent symbol of innocence, was female and she needed protection from technology.

The American Museum of Natural History near Central Park, New York, was opened after the Civil War. In 1936 the African Hall was unveiled, a vision of the communion between nature and man, made possible through the craft of taxidermy. Carl Akeley’s, the chief taxidermist, greatest success was his display of a giant silverback gorilla from Congo-Zaire. This silverback is exhibited in a specially created diorama against a backdrop of Akeley’s own burial site in Congo-Zaire where he died in 1921. Haraway notes that in the same year, the Museum of Natural Science hosted a meeting of the International Congress of Eugenics. (Haraway 1989:26 -27).

Haraway reveals how the funding of the Museum of Natural History and related projects, such as public education, scientific collection and eugenics was provided by wealthy philanthropists. These men were often sports hunters who hunted in the African jungle and were enamoured with nature (Haraway 1989:54). They created a Hall of the Age of Man which museum trustee H. F. Osborn hoped would provide children with “…the book of nature written in facts” in order to prepare them to be “…better citizens of the future.” These early trustees and scientists believed that the nature they knew and were showing was not an interpretation. Nature was real. This realism also informed aesthetic choices in exhibitions.

Haraway reveals how it was also designed to “…make the moral lessons of racial hierarchy and progress explicit.” Osborn was an ardent eugenicist. Another Museum trustee was a white-supremacist author, Madison Grant, who was deeply concerned by the increase of immigration of non-white working classes whom he feared would outnumber the “old American stock”. Non-white included the Jewish and Eastern European cultures (Haraway 1989:57).

Haraway traces the way in which primates: monkeys, apes and chimpanzees, represent a privileged relation to nature and culture. In the chapter on the work of Robert Yerkes (Yale) on Human Engineering and the Laboratories of Primate Biology (1924-1942) she examines his research in comparative primate psychobiology. Human engineering was a term and tool developed c. 1910 to establish and maintain a stable, productive, non-conflictual workplace to prevent lost time and resources. Workers who were properly managed, or ‘engineered’, would ensure industry’s profits. The engineering included concern for stable family situations to encourage the maintenance of a constructive force. In Yerkes research chimpanzees became physiological models of humans. Through them Yerkes investigated instinct, personality, culture and human engineering. In the process he was reformulating the relationship between nature and culture (Haraway 1989:66).

In her final chapter Haraway narrates a link between primatology and science fiction. She tells the story of Lilith, an Octavia Butler character in the science-fiction Dawn. Lilith, a woman of colour, out of Africa, becomes the primal mother, the Eve to a polymorphous species. The story unfolds in a post-nuclear, post-slavery world overtaken by an alien species. It is a survival fiction about the “… resistance to the imperative to recreate the sacred image of the same (Haraway 1989:378).” Haraway refers to a part in Dawn when Lilith talks about her feelings of being impregnated with something that is not human, a metamorphose. “I had gone back to school.” [Lilith] said. “I was majoring in anthropology.” She laughed out bitterly. “I suppose I could think of this as fieldwork – but how the hell can I get out of the field?” (Butler 1987: 262-3)

In this monumental, thorough work Haraway examined the various ‘border disputes” about primates including those between biology and psychiatry, scientists and administrators, specialists and lay people and historians of science and real scientists. “The primate field, naturalistic and textual, has been a site for elaborating and contesting the bio-politics of difference and identity for members of industrial and post-industrial cultures (Haraway 1989:368).” She traced the history of the science of primatology down an exciting path through Central Park, into the dark jungles of Africa, to taxidermy laboratories, to museum dioramas, to Disney homes for chimps and women scientists who serve as a kind of missing link in a long evolutionary chain. She concludes with a fiction, the beginning of a myth of Eve without Adam. She ends her narrative with that of a female scientist who becomes part of the experiment, part of the field study unable to escape (Haraway 1989:14).

Her work is so deeply intertextual and detailed that it confounds but does not prevent criticism. Haraway looked at the way frameworks become acceptable on the basis of value systems or world views held by particular interest groups or power groups which in turn provide the criteria for the legitimization of truth claims. She describes how ideology informs science.

Debates in sociology revolve around sociology’s function as a discipline within academia. Conflicting oppositional viewpoints are often defined as extreme and exclusive dichotomies: nomologism vs. historicism, generalizing vs particularizing, positivism vs relativism, scientific facts vs discourse, Science vs journalism, uncritical vs self-reflexive, occupation vs profession, value-free vs. social, hard science vs soft science, centre vs periphery, intra disciplinary vs interdisciplinary, optimistic vs sceptical; scientific elite vs the public; liberal vs illiberal; objective vs engaged political thinker.

These debates are somewhat like a conversation that takes place over centuries. The character of the debates often takes on the form of rhetorical assertions coupled with evidence. However, the evidence is often grounded in oppositional stances. The most diametrically opposed players then face an impasse which Joan Huber’s and Goldthorpe describe as an unbridgeable chasm. Empirical positivists “know” Science deals in Scientific facts which are predictable, replicable and guaranteed results of pure scientific methodologies. There is no need to theorize because they already know this to be true. SSK, relativists and postmodernists assert that the tools with which scientists work, their methodologies and the very environments in which they work, have to be constantly revisited and theorized. This they know is true. Those who attempt to enter into the conversation, need to first gauge the level of credibility of the discourse on either side. A legalistic strategy of the weighing of evidence might be useful. However, the weight of evidence can be valid only if all the major arguments on both sides are reviewed, a monumental task.

Webliography and Bibliography

Haraway, Donna. 1989. Primate Visions: Gender, Race, and Nature in the World of Modern Science.

My Summary: Haraway looked at the way frameworks become acceptable on the basis of value systems or world views held by particular interest groups or power groups which in turn provide the criteria for the legitimization of truth claims. She describes how ideology informs science. In Primate Visions (1989) Haraway reveals how Yerkes’ Human Engineering projects (1924-1942) used chimpanzees as physiological models of humans. Through them Yerkes investigated instinct, personality, culture and human engineering. In the process he was reformulating the relationship between nature and culture (Haraway 1989:66).


Joseph E. Stiglitz’ major international bestseller (2002) entitled Globalization and its Discontents is an indictment against policies of the International Monetary Fund, World Trade Organization, and World Bank that unintentionally but relentlessly increased vulnerabilities of the poorest groups and nation-states to the advantage of an unfettered market. In his 2003 publication entitled The Roaring Nineties: a New History of the World’s Most Prosperous Decade Stiglitz forcefully argues for a more balanced relationship between State and the Market by elaborating on outcomes and unintended consequences of the free market (neoliberal, market liberal) ideologies that shaped US Presidents Reagan and Bush I administrations national economic policies from c.1980-1992. He reveals the deceptions, distortions and disasters caused by the idealization of the private sector and demonization of government programs and regulations that Stiglitz claims led to the boom and bust of the 1990s. Stiglitz holds a Nobel laureate in Economics (2001), was member then Chair of the Council of Economic Advisors (1993-1997), senior vice-president and chief economist of the World Bank from 1997 to 2000.

In an attempt to understand the Sachs-Stiglitz debate I am reading both. The overarching theme which concerns me is the moral mathematics that leads to the current disequilibrium. As a bricoleuse I am using technologies and software to heighten the findability of useful resources for a more informed civil society, one that includes moderate civil religions. Editor of Rollo May argued forcefully that “the terms ‘optimism’ and ‘pessimism’ employed by Sachs should refer to the state of one’s digestion, and have nothing whatever to do with truth (May 1982).

Jeffrey D. Sachs (2007) argued that those who challenged his unbounded optimism in human capacity to find solutions to our man-made problems through the use of human reason and spirit are promoting ideas that are dangerous and defeatist. He is convinced that humans can continue to build on the 17th century Enlightenment belief in Reason and Science to create a New 21st Century Enlightenment that still includes Adam Smith’s concepts of international markets and Condorcet’s improved harnessing of resources. Like his hero John Maynard Keynes, Sachs occupies a liminal space between the academic and political arenas. We can now develop sustainable smart technologies so that those in wealthier countries do not have to sacrifice but rather can maintain our current high-consumption level through smarter living while making poverty history through a New Politics of global co-operation, an Open-Source Leadership capable of providing concrete actions such as anti-malaria mosquito nets, universal access to anti-retroviral medications by 2010 and voluntary reduction of fertility rates in poor countries. His optimistic vision of a practical, attainable, dynamic, changing peace that meets the challenge of each new generation is “based not on a sudden revolution in human nature but on a gradual evolution in human institutions, on a series of concrete actions and effective agreements which are in the interest of all concerned.” He dismisses those who question our ability to change or who feel depressed by his unabashed optimism in such dark times, as promoting a dangerous defeatist belief. He advocates commandeering the US military budget, debt cancellation for the poorest nations and zero sum redistribution. Whereas his solutions for economic reform for Bolivia in 1985 involved a rapid shock treatment approach to combat hyperinflation, he now advocates a gradualist approach in the evolution of human institutions. He calls for transparent timelines and responsibilities towards Gleneagles promises. He lists off historical acheivements such as the end of slavery, debt-relief, WHO programs as a rebuttal to the historic reality of the 20th century’s unfulfilled good intentions and unacheived goals.

Sachs claims that human reason can solve the unsolvable: “Our problems are man-made, therefore they can be solved by man, and man can be as big as he wants. No problem of human destiny is beyond human beings. Man’s reason and spirit have often solved the seemingly unsolvable, and we believe they can do it again. I am not referring to the absolute infinite concept of universal peace and goodwill of which some fantasies and fanatics dream. I do not deny the value of hopes and dreams, but we merely invite discouragement and incredulity by making that our only and immediate goal (Sachs 2007-04-11).”

Sachs on over-consumption: “I do not believe that the solution to this problem is a massive cutback of our consumption levels or our living standards. I think the solution is smarter living. I do believe that technology is absolutely critical, and I do not believe on the evidence that I’m going to be discussing in these Lectures that the essence of the problem is that we face a zero sum that must be re-distributed. I’m going to argue that there’s a way for us to use the knowledge that we have, the technology that we have, to make broad progress in material conditions, to not require or ask the rich to take sharp cuts of living standards, but rather to live with smarter technologies that are sustainable, and thereby to find a way for the rest of the world, which yearns for it, and deserves it as far as I’m concerned, to raise their own material conditions as well. The costs are much less than people think. You are making the argument that this is so costly we don’t dare do it (Sachs 2007-04-11).”
Sir Christopher Meyer, a former British Ambassador to the United States and currently Chairman of the Press Complaints Commission rejected Sachs’ overoptimistic assumption that human nature can make such a marked change that would lead to the solutions Sachs proposed. Meyer argued that history has proven otherwise.

I am still reading Stiglitz’s The Roaring Nineties: a New History of the World’s Most Prosperous Decade in my non-linear fashion. It is strange that his message is more uplifting to me that Sachs. To be continued . . .

Some useful key concepts emerging from these readings to be developed:

Anthropocene is a term coined by Paul Crutzen which “is the idea that for the first time in history the physical systems of the planet — chemical fluxes, the climate, habitats, biodiversity, evolutionary processes — are to an incredible and unrecognised extent under human forcings that now dominate a large measure of the most central ecological, chemical and bio-physical processes on the planet – the hydrological cycle, the carbon cycle, the nitrogen cycle, the location and extinction of species, and basic physical habitats. Of course human forcings have always played their role. We know that the hominids already controlled fire a million or more years ago, and therefore changed landscapes, even before the rise of homo sapiens. But never has the control of such fundamental processes been determined by human forcings, and we’ve barely awakened to that reality (Sachs 2007-04-11).” This is the the first of three challenges discussed by Sachs (2007-04-11) that face humankind in 2007. [. . .] Sachs’ discussed “the Anthropocene in Beijing, China, which soon will be the country that is the largest emitter of carbon dioxide on the planet, and one that faces its own profound challenges of water stress, which will worsen, perhaps immeasurably, as the glaciers of the Himalayas melt and as the seasonal timing of snow melt from the Himalayas changes the river flow of the Yangtze and Yellow rivers and other rivers of Asia. The Anthropocene tells us that it’s not just about one problem, as Sir Nicholas Stern, one of the intellectual leaders of our time, has brilliantly exposed in his report for the UK government. It’s not only the problem of mass extinctions, or only the problem of the mass destruction of fisheries in the North Atlantic and in many other parts of the world. We are weighing so heavily on the Earth’s systems, not only through carbon dioxide emissions changing climate but through carbon dioxide emissions acidifying oceans, through destruction of habitat, which is literally driving perhaps millions of species right off the planet. We are over-hunting, over-fishing, and over-gathering just about anything that grows slowly or moves slowly. If we can catch it we kill it. Our capacity in the Anthropocene is unprecedented, poorly understood, out of control, and a grave and common threat (Sachs 2007-04-11).”

Folksonomies

Globalization, Economic conditions, Economics, International Monetary Fund, IMF, World Trade Organization, WTO, World Bank, Washington Consensus, WB, neoliberal, market liberal, vulnerability to social exclusion, at-risk populations, extremes of wealth and poverty, moral mathematics,

A Tag cloud for Jeffrey D. Sachs’s Reith Lectures tbc

Jeffrey D. Sachs, Bursting at the Seams, Reith Lectures, BBC, 1948, Royal Society of London, 1660, slavery, empire, humanist, project of modernity, Enlightenment project of material progress, reason, Adam Smith, economics, global market, international markets, technology, Wilberforce, anti-slavery, 1770s, Condorcet, harness reason to grow more crops and to extend life expectancy, [John Locke], important scientific issues of the day, leaders of thought and action, new enlightenment, John Maynard Keynes, John Kennedy, Commencement Address at American University, June 10, 1963, Cuban missile crisis, between academic and political, restore[d]? broken economies, Bolivia, Poland, Russia, global co-operation, harnessing resources, catastrophe, physical geography, epidemiology, climate stress, rain-fed agriculture, drought-prone savannah climates, disease, zoonotic disease, hunger, pollution, clash of civilisations, over-populated world, increasing risk, increasing instability, increasing hatred, tribalism, corruption, ignorance, fanaticism, modern history, Western Darfur, Beijing, China, water stress, acidifying oceans, Himalaya glaciers melt, Yangtze River, Yellow Rivers, Asia, carbon dioxide, geopolitics, fiction of United States as New Rome, leaders of thought and action, optimistic epistemic communities, Sir Nicholas Stern, multi-disciplinary, reason and faith, human nature, gradualism versus shock treatment, concrete actions, anti-malaria mosquito nets, 2010 universal access to anti-retroviral medications, child survival, rapid demographic transition, voluntary reduction of fertility rates in poor countries, Paul Crutzen, Anthropocene, Age of Convergence, women and development, Spice Girls, Geri Halliwell, Ellen Johnson-Sirleaf, Liberia, Africa, over-consumption, maintain consumption level with smarter living, knowledge, technologies, redistribute zero sum that must be re-distributed, Sir Christopher Meyer, open-source leadership, new politics, unfulfilled good intentions, unacheived goals, 2001, World Health Organisation, AIDS, 2005 Make Poverty History, transparent timelines and responsibilities towards Gleneagles promises, GlaxoSmithKline, commandeering the US military budget, practical economics, 1985 debt cancellation for poorest countries, short-term thinking, addressing poverty at home, dangerous defeatist belief versus unbounded optimism.

Timeline of Social History

1776 Adam Smith, the father of modern economics, argued in his 1776 treatise The Wealth of Nations that the market leads us as if by an invisible hand to economic efficiency. Although Adam Smith’s thoughts on this were more circumspect, he is cited by those who since then have argued for unfettered markets. For a critique of the invisible hand argument see the work of Nobel Peace Prize winners Gerard Debreu and Kenneth Arrow (Stiglitz RN 2003:13).

Post WWII

1950s Nobel Peace Prize winners Gerard Debreu and Kenneth Arrow ‘established the conditions under which Adam Smith’s “invisible hand” worked. These include a large number of unrealistic condition, such as that the information was either perfect, or at least not affected by anything going on in the economy, and that whatever information anybody had, others had the same information; that competition was perfect; and that one could buy insurance against any possible risk. Though everyone recognised that these assumptions were unrealistic, there was a hope that the real world did not depart too much from such assumptions – if information were not too imperfect, or firms did not have too much market power – then Adam Smith’s (1776) invisible hand theory would still provide a good description of the economy. This was a hope based more on faith – especially by those whom it served well – than on science (Stiglitz RN 2003:13).”

1980 – 1992 During US Presidents Reagan and Bush I administrations national economic policies were shaped by free market ideologies who idealized the private sector and demonized government programs and regulations (Stiglitz RN 2003:12).

1987 Stock markets fell on October 19 by 23% erasing nearly a quarter of Corporate America’s capital (Stiglitz RN 2002:62).

1991 An economic downturn, a recession, began [in the US?] (Stiglitz RN 2003:54). Between 1990 and 1992 3.5 million people in the US were added to the unemployment pool while millions of others lost well-paying jobs and were forced into underemployment (Stiglitz RN 2003:40). The US federal government lowered interest rates but not quickly enough (Stiglitz RN 2003:40).

1992 President Bush was defeated largely due to poor economic performance (Stiglitz RN 2003:48). Economic circumstances were unsual [in the US?] (Stiglitz RN 2003:54).

1993 President Clinton largely owed his election to the faltering US economy. In January 1993 unemployment was at 7.3%, the US GDP was shrinking by -0.1% and the budget deficit had increased to 4.7% up from 2.8% in 1989 (Stiglitz RN 2003:40-1). Clinton made deficit reduction his priority setting aside his social agenda of job creation. Clinton under the advice of his risk-taking New Democrat economists (including Stiglitz) went against the standard theory of economics that held that deficit reduction slowed down economies and increased unemployment. They took the risk that they would succeed in backloading the nation’s deficit into a future more prosperous time (Stiglitz RN 2003:41). Clinton proposed taxation of polluters (emitters of greenhouse gases) (Stiglitz RN 2003:48).

1997 The meltdown of Asian economies

1997 Stiglitz in Ethiopia, Thailand and Russia

1997? Stiglitz resigned when his protestations about the fundamental wrongness of policies that force already vulnerable economies into capital liberalisation were met with disdain by his political masters.

Webliography and Bibliography

Bibliography and Weliography

May, Rollo. 1982. “The Problem of Evil: An Open Letter to Carl Rogers.” Journal of Humanistic Psychology. Summer:20.

Sachs, Jeffrey D. 2007. “Bursting at the Seams.” Reith Lectures. BBC. No. 1. April 11, 2007. 9am. http://www.bbc.co.uk/print/radio4/reith2007/lecture1.shtml?print

Stiglitz, Joseph E. 2002. Globalization and its Discontents. New York: W.W. Norton & Company. ECO-STI-GLO
Stiglitz, Joseph E. 2003. The Roaring Nineties: a New History of the World’s Most Prosperous Decade. New York: W. W. Norton.

Notes to be developed . . .

The standard theory of economics in the ??? held that deficit reduction would slow down recovery and increase unemployment (Stiglitz RN 2003:41).

Keynes theory of economics was that . . . (Stiglitz RN 2003:41).

New risk management that Clinton applied in 1993 was smaller government and smaller deficit (Stiglitz RN 2003:41)?

The New Democrats like President Bill Clinton and his administration in 1993, were a loose group of politicians, academics and policy makers who called for a revamping of the Democratic Party. They wanted to replace the overuse of bureaucratic solutions with greater concerns for policy impact on business and the marketplace (including Stiglitz?) (Stiglitz RN 2003:12).


CC 3.0 Flynn-Burhoe, Maureen. 2007. “Sachs-Stiglitz debates: Nobel and Reith.” >> Google Docs. Uploaded December 14, 2007. http://docs.google.com/Doc?id=ddp3qxmz_433djbf9mfx

Stressing your system

December 8, 2007


He was a first generation Canadian and was deeply proud of his Scottish background. Whether saying a prayer, making a presentation or telling one of his many jokes, it all sounded better with his Scottish brogue. When I read letters or emails from him I still hear it. He seemed somehow to embody so much of Herman’s portrayal of his country as described in How the Scots Invented the Modern World: The True Story of How Western Europe’s Poorest Nation Created Our World & Everything in It. We were twenty years younger but we became lifetime friends inspite of physical distance and long lapses in communication. Not long ago we were there beside her hospital bed when his wife died of cancer. He was still involved in the local community and in masters’ athletics.

He worked for many years as mechanical engineer with mining companies in remote and northerly areas. His was the first story of the American-style firing I heard and perhaps for that reason I felt it so deeply. Perhaps it was how and where we learned about it that made it seem so ominous. In the 1980s we were living in a third-world country in a youthful self-imposed minimalist lifestyle that suited the idealism of those who experienced the 1960s. In comparison to where we were living, so much of the Canadian socio-economic, political structures seemed like a mirage, a goal towards which our adopted home could aspire to, perhaps 50 years in the future. When the letter arrived we read it together in disbelief. If he was vulnerable to being fired, to being almost cheated out of a pension, how could others survive? How could this happen in Canada? He talked about a colleague who arrived at work one day and without warning was met at the entrance by Security who accompanied him to his office and observed as he emptied his personal belongings from his desk into a cardboard box. The man left in a daze and was found hours later wandering off along the highway with his box in his hand unable to grasp what had happened to him.

During the 1990s when we were back in Canada, the American-style firing became common practice. Companies learned to use financial incentives to ensure the silence of people they fired. Our Scottish friend eventually landed on his feet, started a successful second career and rarely seemed to reveal any bitterness about the experience. Other friends and family members have not been so fortunate. Were we indeed acquiescing, as Uchitelle (2006 [2007]) suggests and therefore encouraging the counterproductive process of layoffs, mergers and acquisitions and outsourcing, that destroyed the notion of job security and dignity of work in North America?

So as I read synopses, excerpts and reviews from the book entitled The Disposable American: Layoffs and Their Consequences (2006 [2007]) by economist, journalist and professor, Louis Uchitelle, it brought me back to that 1980’s letter, like an old postcard that slipped from between the virtual pages of Uchitelle’s book making this story so intimate, personal and timeless.

Timeline of related social events

1950s and 1960s Economist, journalist and professor, Louis Uchitelle described this period as the heyday in the rise of job security in the United States (Uchitelle 2006; Uchitelle 2007).

1966-1988 Donald W. Davis was CEO of Stanley Works for twenty two years in New Britain, Connecticut, the city’s largest employer. These two decades spanned the city’s largest employer best days to the beginning of the layoffs (which he initiated) and plant closings in the 1980s. Like many chief executives of his era, he had been deeply involved in the life of the city that had supplied thousands of Stanley’s workers. The Davis children attended public school in New Britain where he served on the Board of Education including a stint as president of the Board (Uchitelle 2006; Uchitelle 2007).

1975 Foreign competition made its inroads into the North American economy. Corporations panicked with a knee-jerk reaction by implementing the first major layoffs which eventually spread and multiplied, in time destroying the notion of job security and the dignity of work in North America (Uchitelle 2006; Uchitelle 2007).

1987 Economist, journalist and professor, Louis Uchitelle covered economics for The New York Times since 1987, focusing on labor and business issues.

1988 Donald W. Davis retired on schedule, a wealthy man. He sold his bright yellow Dutch Colonial home in New Britain, Connecticut, and moved with his wife to Martha’s Vineyard, where their summer house on seven acres of rolling lawn became their main residence (Uchitelle 2006; Uchitelle 2007).

1996 Economist and journalist Louis Uchitelle shared a major award for its 1996 series “The Downsizing of America.” He also taught journalism at Columbia University’s School of General Studies.

2006 Former CEO of Stanley Works, 81-year-old Donald W. Davis was running a leadership seminar at the Massachusetts Institute of Technology. This was his final public platform where he could present his explanation of the layoffs and plant closings at Stanley Works in the 1980s. Somewhere between 1988 and 2006 he became too uncomfortable to make the four hour trip between his comfortable home in Martha’s Vineyard to New Britain, Connecticut. His former employees had lost their jobs against their wishes. Although he admits to initiating the layoffs he maintains that no one blames him.

Category

Business & Economics >> Economic Conditions

Keywords, folksonomies:

Business, Economics, Economic Conditions, layoffs, job security, wasteful mergers, mergers and acquisitions, wage stagnation, outsourcing, Business Ethic, labour, labor, downsizing,

Webliography and Bibliography

Herman, Arthur. How the Scots Invented the Modern World: The True Story of How Western Europe’s Poorest Nation Created Our World & Everything in It.

Uchitelle, Louis. 2007. “Le coût psychique du licenciement.” Le Monde diplomatique. Octobre.

Uchitelle, Louis. 2006. The Disposable American: Layoffs and Their Consequences. Random House. 2006-03-28. ISBN: 1400041171

Uchitelle, Louis. 2007. The Disposable American: Layoffs and Their Consequences. Knopf Publishing Group. Apr 2007. http://www.ereadable.com/scripts/browse.asp?ref=5551619605&source=P25

CC Flynn-Burhoe, 2007. Stressing your System. >> Speechless. December 7.

CC Flynn-Burhoe, 2007. Stressing your System. >> Google Docs. December 7.

http://docs.google.com/Doc?id=ddp3qxmz_420g988s8dt


Business Editor Charles Frank (2007) cites a FirstEnergy Capital Corp newsletter to clients comparing Alberta’s provincially-funded analysis “Our Fair Share” chaired by Bill Hunter on royalties, to the modus operandi of socialist governments Kazakhstan and Venezuela. Premier Ed Stelmach commissioned a full analysis of provincial royalties as the price of a barrel of oil soared. It is now c. $82.881 a barrel. (It has to be $50 a barrel to extraction of oil from the oil sands profitable.)

EnCana CEO Randall K. Eresman threatened to redirect a billion dollars of EnCana’s planned capital investment out of Alberta to other parts of Canada or the United States if Premier Stelmach adopt’s the “Our Fair Share” report proposals in their entirety.

2007-10-02 Saskatchewan politicians hope that companies like EnCana will act on their bluff and move at least part of their billion dollar threat out of Alberta and into Saskatchewan if royalties are raised too much. Canadian Association of Petroleum Producers industry vice-president David Pryce adds to the oil companies threats saying that if Alberta opts for their fair share of royalties the oil companies will shift activity to the other jurisdictions like Saskatchewan. However, even though Saskatchewan politicians might hold out for awhile, they would pay at the polls just like Stelmach if they continue to operate their energy sector as if the rules of the 1970s still apply. Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge so how much is Saskatchewan willing to give away to enjoy an Alberta boom? (Wood 2007-10-02). Do they really want the housing crisis, the long delays in service to drive their thriving economy even more? Are they willing to forego their fair share to entice fickle oil companies to their province.

CBC. 2007-10-05 ConocoPhillips President Kevin Meyers threatened Alberta Premier Ed Stelmach that ConocoPhillips will postpone $8 billion proposed oilsands projects. Meyers claimed that if royalties are raised as suggested in Our Fair Share and by the Alberta auditor ConocoPhillips would lose an oilsands project worth $500 million next year. They threaten to cut 30 to 40% of the $2.5 billion to $3 billion it plans to spend in 2008 on Alberta-based activity. It is estimated that if all the recommendations of Our Fair Share were implemented, the Alberta government would benefit by $2 billion a year. Alberta has a history of hospitality for oil and gas companies with the low energy royalties (based on oil at ?20 a barrel versus $80 and rising4), no provincial sales tax, no Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge. Oilsands developers have been allowed to use Alberta’s limited natural gas resources to extract their oil as quickly as possible instead of slower technology-intense methods. (Even the oil industry DOE report urges the need for patient money). Images of the Fort McMurray’s envirnomental nightmare landscape of Fort McMurray are courteously not shown around at dinner tables (although in quieter voices Albertans will ask, “Have you ever been to Fort McMurray?”).

Who’s Who

EnCana 10th place in Fortune Global 500’s Mining, Crude-oil production Industry: EnCana with an overall Fortune 500 rank of 431/500 (previously 396/500) and revenues of $17,081.0 millions. EnCana’s profits are $5,652.0 million; Assets: $35,106.0 Million; Stockholders’ Equity: $17,466.0 million. CEO Randall K. Eresman. It has 4,678 employees and is located at 855 2nd St. S.W., Calgary T2P 2S5, Canada, Phone: 403-645-2000
Website: www.encana.com
FirstEnergy Capital Corp. (started c. 1994) is a member of the Canadian Investor Protection Fund. Its 79 employees including CEO Jim Davidson, Jill Angevine, Vice-President of institutional research, John

Chambers, Ruby Wallis, Bev Thompson, Sheila Kaiser, Margie Gal, and Angelique Cyr work long days beginning at 6:15 AM and engage in the high-pressure industry of investment dealing. These investment dealings and transactions individually involve multi-millions and even billions of dollars of financings2. It is located at 1100, 311 – 6 Avenue SW, Calgary Alberta T2P 3H2 (FirstEnergy Capital (USA) Corp. is a member of the Securities Investor Protection Corporation.) The firm has raised $7 million for Calgary’s less fortunate. It now supports over 200 charities. (Every year, [they] allocate a minimum of 2.5 percent of our gross profits to charitable organizations and community groups. Often, [they] significantly exceed this minimum donation. These actions illustrate the strong sense of community that is part of [their] corporate culture.” For example a party they hosted during the rodeo with 1500 guests raised $200,000 for Calgary Communities Against Sexual Abuse (CCASA), Calgary Quest School and the Parks Foundation Calgary. In June 2006 CalgaryInc named them as the best place to work in Calgary. As well according to their own site “Canadian Business magazine ran a very complimentary article on FirstEnergy in the August 2007 edition covering the firm back to inception and including a mention of our expanded relationship with Société Générale.”

FirstEnergy Capital Corp FirstNews for investors tracks changes in the price of oil, gas through indicators such as unseasonable temperatures (for example in Toronto) or weather disturbances (such as hurricanes), consumer confidence, industry takeovers, bankruptcies, labour disputes, changes in interest rates, the housing market, oil and gas inventories and industry regulation. For example on September 25 they reported that “U.S. stocks fell on Monday, after news that Germany’s largest bank may take a hit from sub-prime mortgage investments. Citigroup and other banks fell after sources said the exposure could reduce Deutsche Bank’s profit by $2.4 billion. Furthermore, the first nation wide strike at General Motors in 37 years raised concerns about the economic outlook. Shares of auto parts suppliers fell, led by a 3% drop in Lear Corp. The Dow Jones Industrial Average lost 61.13 points to end at 13,759.06, while the NASDAQ fell 3.27 points to close at 2,667.95 (FirstNews 2007-09-25).”

Timeline

1992 Kazakhstan adopted among the world’s most open investment laws in order to encourage development.

2002 After the April 2002 aborted coup against Venezuela’s President Hugo Chávez, many observers accused Washington of having been behind the attempted ouster. The Bush administration denied any U.S. involvement in the affair. However, one relatively clear connection emerged between the U.S. government and the anti-Chávez movement: millions of dollars in U.S. taxpayer money channeled through the IRI and other U.S. organizations that funded groups opposed to Chávez during the years preceding the April coup. Writer Mike Ceaser reported that in an April 12, 2002, fax sent to news media, IRI President George A. Folsom rejoiced over Chávez’s removal from power. “The Venezuelan people rose up to defend democracy in their country,” he wrote. “Venezuelans were provoked into action as a result of systematic repression by the government of Hugo Chávez.” With NED funding, IRI had been sponsoring political party-building workshops and other anti-Chávez activities in Venezuela. “IRI evidently began opposing Chávez even before his 1998 election,” wrote Ceaser. “Prior to that year’s congressional and presidential elections, the IRI worked with Venezuelan organizations critical of Chávez to run newspaper ads, TV, and radio spots that several observers characterize as anti-Chávez” (Ceaser 2002). (IRI 2007)

2007-09-25
Rumours circulate that Germany’s largest bank may take a hit from sub-prime mortgage investments (FirstNews 2007-09-25).

2007-09-25 The first nation wide strike at General Motors in 37 years raised concerns about the economic outlook. Shares of auto parts suppliers fell, led by a 3% drop in Lear Corp. (FirstNews 2007-09-25).

2007-09-28 The Global Energy Conference for members only was held in Toronto, Canada on September 28 and announced on FirstEnergy Capital Corp. website.

2007-09-28 “The Kazakh parliament unanimously approved a bill Sept. 26 that would allow the government to modify or break any contract unilaterally in which the “interests of Kazakhstan” are threatened (as defined by the government). They are demanding royalties of 40% up from 30%. Kazakhstan now produces 1.3 million barrels per day (bpd) of oil, and if the projects currently signed are completed, within 10 years it hopes to be producing 3.5 million bpd [. . .] Royal Dutch/Shell, ExxonMobil and ConocoPhillips are part of the oil consortium developing Kazakhstan’s oil. [. . .] The best that Kazakhstan [might end up with a] Venezuela-like situation, in which foreigners freeze all expansion efforts and focus solely on inexpensive methods of maintaining existing output. In Venezuela output has fallen from 3.5 million bpd to 2.3 million bpd since government restrictions began 10 years ago. One of Kazakhstan’sfields is one of the most technically challenging in existence, boasting vertical and variable deposits loaded with high-pressure hydrogen sulfide. The field itself is in a high wind zone that freezes over in the winter. Kashagan will be the most technically challenging — and expensive — oil project ever attempted.” [China has the capital to invest in Kazakhstan but perhaps lacks the technology for now (Offnews.info 2007).”

2007-10-02 Saskatchewan politicians hope that companies like EnCana will act on their bluff and move at least part of their billion dollar threat out of Alberta and into Saskatchewan if royalties are raised too much. Canadian Association of Petroleum Producers industry vice-president David Pryce adds to the oil companies threats saying that if Alberta opts for their fair share of royalties the oil companies will shift activity to the other jurisdictions like Saskatchewan. However, even though Saskatchewan politicians might hold out for awhile, they would pay at the polls just like Stelmach if they continue to operate their energy sector as if the rules of the 1970s still apply. Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge so how much is Saskatchewan willing to give away to enjoy an Alberta boom? (Wood 2007-10-02). Do they really want the housing crisis, the long delays in service to drive their thriving economy even more? Are they willing to forego their fair share to entice fickle oil companies to their province.

CBC. 2007-10-05 ConocoPhillips President Kevin Meyers threatened Alberta Premier Ed Stelmach that ConocoPhillips will postpone $8 billion proposed oilsands projects. Meyers claimed that if royalties are raised as suggested in Our Fair Share and by the Alberta auditor ConocoPhillips would lose an oilsands project worth $500 million next year. They threaten to cut 30 to 40% of the $2.5 billion to $3 billion it plans to spend in 2008 on Alberta-based activity. It is estimated that if all the recommendations of Our Fair Share were implemented, the Alberta government would benefit by $2 billion a year. Alberta has a history of hospitality for oil and gas companies with the low energy royalties (based on oil at ?20 a barrel versus $80 and rising4), no provincial sales tax, no Alberta has lower corporate taxes, no provincial sales tax and no resource royalty surcharge. Oilsands developers have been allowed to use Alberta’s limited natural gas resources to extract their oil as quickly as possible instead of slower technology-intense methods. (Even the oil industry DOE report urges the need for patient money). Images of the Fort McMurray’s envirnomental nightmare landscape of Fort McMurray are courteously not shown around at dinner tables (although in quieter voices Albertans will ask, “Have you ever been to Fort McMurray?”).

Footnotes

1. “Crude oil prices posted big gains on the day. The continued decline of the U.S. dollar and concerns that supply may not be able to meet demand this coming winter, fuelled the price increase. NYMEX light sweet crude for November delivery gained $2.58 to end at $82.88 per barrel [. . .] Canadian stocks continued their five day rally closing higher on strong commodity prices. The government also reported a $13.8 billion budget surplus for fiscal 2006-07, which will be used to pay down debt. Suncor Energy was the biggest weighted gainer, up $2.17 or 2.3% to $95.71. The S&P/TSX Composite Index gained 94.76 points to close at 14,129.73. [. . .] U.S. stocks ended higher on Thursday, as energy shares were elevated by higher oil prices. However, a report released earlier in the day showed a plunge in new home sales and the sharpest year-over-year drop in prices in nearly 37 years. The Dow Jones Industrial Average gained 34.79 points to 13,912.94, while the NASDAQ gained 10.56 points to close at 2,709.59. (FirstNews 2007-09-28).”

2. In an online summary FirstEnergy includes in their recent report on their 800 financings and over 200 M&A assignments that they has participated in since c. 1994.$701,000,000 disposition by EnCana Corporation of its Interest in Petrovera Resources LimitedPartnership in January 2004. Others are: $495,000,000: the Sale of Sound Energy Trust to Advantage Energy Income Fund in September 2007; $3,500,000,000: of CCS Income Trust as Formal Valuator and Advisor to the Independent Committee September 2007; $508,000,000: Sale of Capitol Energy Resources Ltd. to Provident Energy Trust. June 2007; $91,000,000 Compton Petroleum Corporation Acquisition of Stylus Energy Inc.August 2007; $980,000,000 for TriStar Oil & Gas Merger with Real Resources Inc. August 2007; $440,000,000 Sale of Find Energy Ltd. to Shiningbank Energy Income Fund September 2006; $431,000,000 True Energy Trust Acquisition of Prairie Schooner Petroleum Ltd. September 2006; $1,500,000,000 Savanna Energy Services Corp. Merger with Western Lakota Energy Services Inc. August 2006; $320,000,000 Highpine Oil & Gas Limited Acquisition of Kick Energy Corp. August 2006; $4,000,000,000 Viking Energy Royalty Trust Merger with Harvest Energy Trust February 2006; $4,400,000,000 Precision Drilling Corporation Reorganization into an Income Trust November 2005; $350,000,000 UTS Energy Corporation Partnership and Asset Sale to Teck Cominco Limited December 2005; $1,400,000,000 Cequel Energy Inc. and Progress Energy Ltd. Merger and Reorganization into a Trust and Spinout of ProEx Energy Ltd. and Cyries Energy Inc. April 2004.

 

3. 1st place in Fortune Global 500’s Mining, Crude-oil production Industry: Anglo American with an overall Fortune 500 rank of 195/500 and revenues of $33,072.0 million; 2nd place in Fortune Global 500’s Mining, Crude-oil production Industry: BHP Billiton with an overall Fortune 500 rank of 205/500 and revenues:$32,153.0 millions; 3rd place in Fortune Global 500’s Mining, Crude-oil production Industry: Rio Tinto Group with an overall Fortune 500 rank of 313/500 and revenues:$22,465.0 millions; 4th place in Fortune Global 500’s Mining, Crude-oil production Industry: RAG with an overall Fortune 500 rank of 345/500 and revenues:$20,365.0 millions; 5th place in Fortune Global 500’s Mining, Crude-oil production Industry: CVRD with an overall Fortune 500 rank of 359/500 and revenues:$19,651.0 millions; 6th place in Fortune Global 500’s Mining, Crude-oil production Industry: Oil & Natural Gas with an overall Fortune 500 rank of 369/500 and revenues:$19,237.4 millions; 7th place in Fortune Global 500’s Mining, Crude-oil production Industry: Occidental Petroleum with an overall Fortune 500 rank of 377/500 and revenues:$19,029.0 millions; 8th place in Fortune Global 500’s Mining, Crude-oil production Industry: Surgutneftegas with an overall Fortune 500 rank of 392/500 and revenues:$18,413.1 millions; 9th place in Fortune Global 500’s Mining, Crude-oil production Industry: Xstrata with an overall Fortune 500 rank of 414/500 and revenues:$17,632.0 millions; 10th place in Fortune Global 500’s Mining, Crude-oil production Industry: EnCana with an overall Fortune 500 rank of 431/500 and revenues:$17,081.0 millions; 11th place in Fortune Global 500’s Mining, Crude-oil production Industry: China National Offshore Oil with an overall Fortune 500 rank of 469/500 and revenues:$16,038.9 millions.

4. Not to mention Tertzakian’s $100 a barrel peak!


Webliography and Bibliography

2007. “EnCana.” Snapshots. Fortune Global 500. September 30. http://money.cnn.com/magazines/fortune/global500/2007/snapshots/11155.html

CBC. 2007-10-05 “Energy giant rages against plan to hike Alberta royalties.” http://www.cbc.ca/canada/calgary/story/2007/10/05/royalties-protests.html

Ceaser, Mike. 2002. “As Turmoil Deepens in Venezuela, Questions Regarding NED Activities Remain Unanswered,” Americas Program, December 9.

FirstNews. 2007. FirstEnergy Capital Corp. September 28. http://firstenergy.com/research/news/News-2007-09-25.pdf

FirstNews. 2007. FirstEnergy Capital Corp. September 28. http://firstenergy.com/research/news/News-2007-09-28.pdf

Frank, Charles. 2007. “Tough Talk Just the Start to Ugly Royalty Fight.” Calgary Business. Calgary Herald. September 29. C1 & c14.

(IRI) International Republican Institute. 2007. Right Web Profile. Silver City, NM: International Relations Center, July 19.

Offnews.info. 2007. “Kazakhstan – End of an Era.” Offnews.info. Buenos Aires, Argentina. September 30. http://www.offnews.info/verArticulo.php?contenidoID=9429

Wood, James. 2007. “Politicians in no mood to alter Sask. energy royalties system.” The StarPhoenix. Saskatoon.


Creative Commons License 2.5 Flynn-Burhoe, Maureen. 2007. “Fear Industry marries Oil Industry: Albertastan? Canazuela? Who’s Afraid of Social[ism] Capital?” http://docs.google.com/Doc?id=ddp3qxmz_380dvhvz9 September 30. Creative Commons License 2.5 Flynn-Burhoe, Maureen. 2007. “Fear Industry marries Oil Industry: Albertastan? Canazuela? Who’s Afraid of Social[ism] Capital?” >> Speechless. September 30.


How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions. Debates focus on rationally coherent and justifiable procedures for prioritizing health-care. Norman Daniels (1985) provided a useful non-utilitarian ethical principle for distributing health care resources which he later developed with James Sabin into a theory of “accountability for reasonableness” (A4R) (Daniels and Sabin 2002). University of Toronto Political Science professors David A. Welsh and Melissa Williams, wrote an Op-Ed (2002) for the Globe and Mail in response to the Canadian Romanow report on health care. They described how a just health-care system through the Rawls lens would be one that works to the greatest benefit of the least-advantaged member of society.

 

 

In 2007 the US c. 9 million children still have no health insurance. In 1997 the US government introduced a bipartisan program called S-CHIP broadly supported by both Democrats and Republicans which expanded health coverage to millions of at-risk children from low income families. Private insurance companies like Medicare Advantage, backed by the CATO Institute, are lobbying Senators to minimize the access of vulnerable families to health care by equating these social services based on social justice to a step towards socialism and away from the rights of market freedom (Lieberman 2007).


 

“By every measure, the ten-year-old program–passed during the Clinton Administration as a bipartisan, incremental effort to expand health coverage to millions of poor kids–has been a success. Thanks to S-CHIP, the number of low-income uninsured kids dropped by one-third over the decade, even as the number of uninsured adults went up. Three out of four eligible kids participate, and studies show they receive preventive care and have improved health outcomes and school performance. “It has been the only success story in initiatives to improve healthcare access,” says Cindy Mann, who directs Georgetown University’s Center for Children and Families [. . .] S-CHIP enjoys broad support among Democratic and Republican governors. Its flexibility allows states to tailor their own programs or build on existing Medicaid arrangements to target children typically in families with incomes of up to 200 percent of the federal poverty level[1] (about $41,300 for a family of four this year) [. . .] This summer the House and Senate passed bills reauthorizing S-CHIP, but by mid-September it became clear that the House bill, which added 5 million uninsured kids to the rolls and paid for their coverage partly by cutting government over-payments to Medicare Advantage plans, would lose to the more minimal Senate approach. Giving health insurance to more kids instead of overpaying highly profitable insurance companies seemed like a good trade. But the Senate, lobbied all year by the insurance industry, didn’t see it that way [. . .] Influential GOP senators, targeted by sellers of Medicare Advantage plans heavily marketed in rural areas, are adamantly against cuts to Medicare Advantage [. . .] Nearly 9 million kids now have no health insurance, and up to two-thirds of them are eligible for S-CHIP or Medicaid. Even so, for [. . .] the White House, both bills cover too many children. [. . .] Apparently the Administration prefers to unleash families into the Darwinian jungle of the private insurance market, where only the wealthiest and healthiest can buy a policy. [. . .] The price for family coverage now averages $12,000, or about 20 percent of income for a family of four with income at 300 percent of the poverty level. [There are] new bare-bones policies, such as the one sold in Ohio by Anthem Blue Cross and Blue Shield with deductibles ranging from $4,000 to $20,000 ($8,000 to $40,000 if the family uses out-of-network providers). The policy covers only two doctor visits per year, and families must pay 30 percent of any hospital bill after satisfying the deductible [. . .] The Cato Institute held a briefing called “Sinking S-CHIP: A First Step Toward Stopping the Growth of Government Health Programs.” Heritage and the American Legislative Exchange Council called their briefing “S-CHIP Expansion: Bad for Kids, Families, and Taxpayers.” They are equating health-care for poor kids with socialism. If that’s the case, our children will be the first casualties on the way to marketplace perfection (Lieberman 2007).”

 



University of Toronto Political Science professors David A. Welsh and Melissa Williams, wrote this Op-Ed (2002) for the Globe and Mail in response to the Canadian Romanow report on health care. They described how a just health-care system through the Rawls lens would be one that works to the greatest benefit of the least-advantaged member of society:

 


 

John Rawls, one of the most important political philosophers of the 20th century, died last week near Boston. We both had the pleasure of studying under him in graduate school, where we came to know him not only as a brilliant thinker, but as a kind and gentle man. He will be sorely missed. Last week Roy Romanow released his much-awaited report on the Canadian health-care system. As proponents and critics predictably squared off, we naturally wondered what Mr. Rawls might have to say about it. Quite a lot, we suspect. And his particular take on the matter would have productively re-framed what is becoming a tiresomely clichéd debate. Part of what made him such a decent human being was his unyielding commitment both to liberty and to equality. What made him a brilliant philosopher is that he had far more success than most in reconciling the two. In his greatest work, A Theory of Justice (1971), he argued that if we understand society as a scheme of co-operation for mutual advantage, we can best accommodate the demands of liberty and equality by designing social institutions around two core principles. The first is that every member of society should be entitled to the fullest scheme of personal liberty consistent with a like liberty for all. The second, or “Difference Principle,” is that inequalities in the distribution of primary goods (things it is rational to want no matter what your particular life plan or conception of the good might be — such as wealth) should work to the greatest benefit of the least-advantaged member of society. It is perfectly all right to have rich people and poor people in society, according to Mr. Rawls, as long as the poorest would be even poorer under any alternative set of basic principles of social distribution. Advocates of private health-care provision stress the importance of liberty — of the right to choose how and where to spend one’s health-care dollar. Advocates of universal public health care stress the importance of equality, of every citizen’s right to the same quality of health care at the same speed of delivery. Mr. Rawls would argue that access to health care is a quintessential primary good: No matter what your life plan might be, it’s rational for you to want it. It’s a limited resource in all societies, and all societies must decide how to distribute it. Some choose market mechanisms; others socialize it. As a primary good, he’d argue, it should be governed by the Difference Principle. A just health-care system is one that works to the greatest benefit of the least-advantaged member of society. Which model would we choose if guided by Rawlsian principles? Existing systems in countries comparably wealthy to Canada offer us clues. From the perspective of the least-well-off, largely private systems such as the American one fare poorly in comparison to public systems such as Canada‘s (though they have advantages such as speed of delivery for costly cutting-edge procedures). But this casual comparison is insufficient. It’s possible that some creative blend of public and private health care might serve the worst-off in society better than does Canada‘s current system, even if revamped in the way suggested by the Romanow report. Mr. Rawls would ask us to think imaginatively about alternatives, model them intensively, and choose accordingly. He would have us embrace whatever worked to the benefit of the least-advantaged — perhaps some creative blend of public and private. Without scrutinizing the alternatives from the perspective of the least-well-off, he’d say, we cannot know whether inequalities in access to health care would be just or unjust. That strikes us as a perspective well worth pondering. Melissa Williams and David Welch teach political science at the University of Toronto (Williams and Welch 2002).

 

 

Emanuel ‘s review of Daniels and Sabin’s Setting Limits Fairly – Can We Learn to Share Medical Resources? summarizes the strengths and weaknesses in this widely cited theory of “accountability for reasonableness” (A4R).

“In 1985, Norman Daniels published Just Health Care, which articulated the first useful, nonutilitarian ethical principle for distributing health care resources. Daniels claimed that health care was important because it helped to ensure “normal human functioning,” which in turn enhances people’s opportunities to pursue their life plans. In Daniels’s view, a just health care system tries “to make sure that individuals maintain normal functioning, where possible” — an ethically valuable way to ensure equality of opportunity. Although Daniels’s fair-opportunity principle was an important advance, it became clear that it had problems. First, it appeared to justify the provision of almost all available health care services, since almost everything physicians can do is aimed at maintaining normal functioning and enhancing people’s opportunities. In this sense, it hardly seemed to be a way to set priorities; rather, it seemed to be a way to justify doing nearly everything medically possible. To his credit, Daniels was among the most perceptive critics of his own principle and identified other limitations, such as its inadequacy for helping to determine whether priority should be given to lifesaving interventions for a few patients or to services that improve the quality of life for many. In this new book, Daniels and James E. Sabin offer another approach. They argue that in Western democracies, there is no agreement on substantive principles for the distribution of health care services. Consequently, the challenge is to define the conditions under which it is ethically acceptable for institutions to set limits on health care. They propose four conditions, collectively termed “accountability for reasonableness”: first, publicity (decisions to limit health care and their rationales must be publicly accessible); second, relevance (the rationales invoked must be based on evidence, reasons, and principles that fair-minded persons would affirm); third, appeals (mechanisms for challenging allocation decisions must exist); and fourth, regulation (public procedures must ensure the fulfillment of these three conditions). Daniels and Sabin believe that requiring the use of public, explicit decisions “will improve the quality of decisions making” and will improve public confidence that decisions are made for ethical and not self-interested reasons. Daniels and Sabin devote the second half of their book to studies of how accountability for reasonableness works in the real world. They examine approaches to last-chance therapies, ways in which various managed-care organizations have confronted lung-volume-reduction surgery, and the problems of pharmacy benefit design. One conclusion of Setting Limits Fairly is that, because of limited resources and nonmedical priorities, justice does not entitle people to all effective medical services. Another is that justice does not entitle every person to the same set of medical services. Different health care plans might well come to different determinations, for example, about whether to cover the cost of an artificial heart or the latest migraine medication. Consequently, one person might be entitled to an artificial heart, but his or her neighbor might not be. Yet if the plans’ procedures for determining these distributions fulfill the conditions of accountability for reasonableness, both determinations might be ethical. People are entitled not to the same set of services but, rather, to determinations made through fair procedures. Daniels and Sabin note that agreement on substantive principles for allocating medical resources is unlikely; defining fair procedures for priority setting should be the goal. What is at issue is whether accountability for reasonableness is the right approach. In my opinion, this approach is too passive. Powerful health care institutions make the decisions and provide the reasons, and persons subjected to the decisions merely have the right of appeal. There are, however, avenues for influencing the distribution of resources, such as participation in debates about funding priorities, communication with political representatives, and formation of political associations to lobby and advocate. Fair procedures require the empowerment of those who must live with the medical services that are covered. To augment Daniels and Sabin’s four principles, we need at least three additional principles: first, fair consideration (there must be mechanisms to assess and incorporate every person’s interests and preferences); second, empowerment (there must be mechanisms for persons to influence decision makers and to participate in the decision-making process); and third, impartiality (those formulating and implementing decisions about resource allocation should not have a conflict of interest). In the next decade, every country will face very hard choices about how to allocate scarce medical resources. There is no consensus about what substantive principles should be used to establish priorities for allocations. Instead, we will need fair procedures. Debate will focus on what those procedures should be. Daniels and Sabin’s accountability for reasonableness and illuminating case studies will be invaluable in furthering that debate (Emanuel 2002).”

Schlander expert evidence presented (2007) to the UK House of Commons committee clearly outlines the components of Daniels and Sabin’s concept of Accountability for Reasonableness (A4R).

5.1 Recognizing both the difficulty of democratic societies to achieve consensus on distributive principles for health care and the need for legitimacy of allocation decisions, Norman Daniels and James Sabin (2002) proposed a framework for institutional decision-making, which they call “accountability for reasonableness” (A4R). In order to narrow the scope of controversy, A4R relies on “fair deliberative procedures that yield a range of acceptable answers” and consists of four conditions. 5.1.1 Publicity, ie, resource allocation decisions must be public, including the grounds for making them. Transparency should open decisions and their rationales for scrutiny by all affected, not just the members of the decision-making group; 5.1.2 Relevance, ie, “the grounds for decisions must be ones that fair-minded people can agree are relevant to meeting health care needs fairly under reasonable resource constraints.” Arguments should rest on scientific evidence, though not necessarily a specific kind of, and appeal to the notion of “fair equality of opportunity.” Although Daniels and Sabin acknowledge that stakeholder participation may improve deliberation about complicated matters, they believe it is neither a necessary nor a sufficient condition of A4R; 5.1.3 Revisions and appeal, ie, there must be an institutional mechanism to engage a broader segment of society in the process, providing those affected by a decision to reopen deliberation, and to offer decision-makers an option to revise funding decisions in light of further arguments. 5.1.4 Enforcement entails some form of regulation to make sure that the first three conditions are met (Schlander 2007).

In 2003 Daniels, Teagarden and Sabin provided a template for the application of accountability for the reasonableness in regards to benefit decisions.

“We propose an ethical template for pharmacy benefits and a fair process for using it. The template delineates four levels of decisions about pharmacy coverage, connecting ethically acceptable types of rationales for limits with decisions made at each level. It provides a framework for organizing ethically relevant reasons for coverage (or the tiered copayments). The process for using the template assures accountability for the reasonableness of benefit decisions. It requires transparency and relevance of rationales for limit setting and revisability of decisions, including through fair procedures for appeals. The template and the process facilitate broader public learning about fair limit setting (Daniels, Teagarden and Sabin 2003).”

Accountability for Reasonableness (A4R): “Norman Daniels’ and James Sabin’s theory of “accountability for reasonableness” (A4R) is a much discussed account of due process for decision-making on health care priority setting.

Central to the theory is the acceptance that people may justifiably disagree on what reasons it is relevant to consider when priorities are made, but that there is a core set of reasons, that all centre on fairness, on which there will be no disagreement. A4R is designed as an institutional decision process which will ensure that only those reasons which everybody will agree are relevant and appropriate form part of decision-making. The argument which we will put forward in this paper questions whether it is a simple matter to delineate the core set of reasons and claims that it is a potential problem in A4R that it does not provide an indication of the exact content of this process.The paper first briefly outlines the content of A4R. It is argued that disagreement on what services should be high priorities cannot be resolved solely with a reference to “due process.” In order to retain consistency over time, decision-makers are required to agree and articulate what reasons qualify as relevant and how conflicting reasons are to be balanced in the course of the process.The second and main part of the paper then considers how the reason of “solidarity” can be handled within the A4R framework, and it is shown that deciding whether solidarity should be admitted to the core set of allowable reasons is not a simple matter (Daniels and Sabin).”

Vulnerability, “the susceptibility to harm, results from an interaction between the resources available to individuals and communities and the life challenges they face. Vulnerability results from developmental problems, personal incapacities, disadvantaged social status, inadequacy of interpersonal networks and supports, degraded neighborhoods and environments, and the complex interactions of these factors over the life course. The priority given to varying vulnerabilities, or their neglect, reflects social values. Vulnerability may arise from individual, community, or larger population challenges and requires different types of policy interventions; from social and economic development of neighborhoods and communities, and educational and income policies, to individual medical interventions (Mechanic and Tanner 2007).”

“The logic of cost-effectiveness, as adopted by NICE and in contrast to traditional cost benefit analysis, does not represent an orthodox application of economic welfare theory [5-9]. The development of the cost-effectiveness framework was, instead, heavily influenced by decision analysts with operations research backgrounds, who were striving to transfer methods used to optimise the efficiency of manufacturing processes to the production of health (Schlander 2007).”


Folksonomies, tags, categories, folders, keywords: vulnerability, vulnerability to social exclusion, public versus private, ethics, accountability for reasonableness, priority setting, resource allocation, fairness, solidarity, at-risk youth, at-risk populations, social capital, distributive justice, fiduciary relationships, professional ethics, prioritisation, healthcare resources, a rationally coherent and broadly justifiable regime for prioritising healthcare, accountability for reasonableness, benefits accountable, reasonable resource constraints, share medical resources, special moral importance, touchstone question, health care limits, market accountability, fair process, managed behavioral health care, coverage decisions,


Footnotes

1. The 2007 Health and Human Services Poverty Guidelines lists the threshold for poverty as 4 persons in a household with a combined income of $20,650.


David Welch is Professor of Political Science and Director of the Trudeau Centre for Peace and Conflict Studies at the University of Toronto.

 

Melissa S. Williams “is Professor of Political Science and founding Director of the Centre for Ethics at the University of Toronto. She is also Editor of NOMOS, the Yearbook of the American Society for Political and Legal Philosophy. Williams teaches in the history of Western political thought, contemporary democratic theory, feminist theory, American political thought, and ethics in the public sphere. “Williams’s research is predominantly in contemporary democratic theory; it frequently addresses core concepts in political philosophy through the lens of group-structured inequality, social and political marginalization, and cultural and religious diversity. Her first book, Voice, Trust and Memory: Marginalized Groups and the Failings of Liberal Representation (Princeton University Press, 1998), develops a theoretical defense of descriptive representation for historically marginalized groups. It won the Foundations of Political Theory Section’s award for the best first book in political philosophy. More recent work has addressed the relationship between peace and justice in the liberal theory of toleration; conceptions of citizenship in an era of globalization; and justice for indigenous peoples. Williams currently has two book projects under way: Equality, for the Routledge Series on Concepts in Political Philosophy; and Reconstructing Impartiality, which begins from feminist and difference-based critiques of liberal impartiality and seeks to develop an alternative account of “situated” or “contextual” impartiality within law-governed relationships. She has published thirty articles on these and other topics in Political Theory, the Canadian Journal of Political Science, numerous edited volumes, and other international journals. Williams has also co-edited a number of works: Identity, Rights and Constitutional Transformation (1999; with Patrick Hanafin); Political Exclusion and Domination (NOMOS XLVI, 2005, with Stephen Macedo); Humanitarian Intervention (NOMOS XLVII, 2005, with Terry Nardin); Toleration and Its Limits (NOMOS XLVIII, forthcoming, with Jeremy Waldron); and Moral Universalism and Pluralism (NOMOS XLIX, forthcoming, with Henry Richardson). Williams was Visiting Faculty Fellow at the Center for Ethics and the Professions at Harvard University (1996-97), Visiting Professor in the Department of Philosophy at the University of Amsterdam (2000), and Laurance S. Rockefeller Visiting Professor for Distinguished Teaching at the Center for Human Values at Princeton University (2000-2001). A former winner of the Leo Strauss Award for the best doctoral dissertation in political philosophy, she has served APSA as a member of the Leo Strauss Award Committee as well as on the Foundations of Political Thought Section’s First Book Award Committee. She is a regular and active participant in ASPA meetings (APSANET).”

Bibliography and Webliography

APSANET (American Political Science Association) Profile of Melissa S. Williams

Daniels, Norman; Teagarden, J. Russell; Sabin, James E. 2003. “Pharmacy Benefits: an Ethical Template for Pharmacy Benefits.” Health Affairs: the Policy Journal for the Health Sphere. 22:1:125-137.

Daniels, Norman, Sabin, James E. 1997. Limits to health care: fair procedures, democratic deliberation, and the legitimacy problem for insurers. Philosophy and Public Affairs. 26:4: 303-350.


Daniels, Norman, Sabin, James E. 1998. The ethics of accountability in managed care reform. Health Affairs. 17:50-64.


Daniels, Norman, 2001. Justice, health, and healthcare. American Journal of Bioethics . 1:2: 2-16.


Daniels, Norman, Sabin, James E. 2002. Setting Limits Fairly – Can We Learn to Share Medical Resources? Oxford: Oxford University Press.


Hasman, Andreas; Holm, Søren. 2005. “Accountability for Reasonableness: Opening the Black Box of Process.” Health Care Analysis. 13: 4. December:261-273(13).

Lieberman, Trudy. 2007. “Let the CHIPs Fall…” The Nation. September 20: October 8, 2007.

Mechanic, David, Tanner, Jennifer. 2007. “Vulnerable People, Groups, And Populations: Societal View: Definitions & Determinants.” Health Affairs: the Policy Journal for the Health Sphere. 26:5:1220-1230.

Schlander, Michael. 2007. Evidence submitted by the Institute for Innovation; Valuation in Health Care (NICE 18). United Kingdom House of Commons Select Committee on Health. Written Evidence. March 16.

Schlander, Michael. “The use of cost-effectiveness by the National Institute for Health and Clinical Excellence (NICE): No(t yet an) exemplar of a deliberative process.” http://jme.bmj.com/preprint/schlander.pdf

 

 

Welch, David A., Williams, Melissa. 2002. “Medicare through the Rawls Lens.” Globe and Mail. Op-Ed. December 3. Temporarily posted at http://docs.google.com/Doc?id=ddp3qxmz_56f423xr

Emanuel, Ezekiel J. 2002. “Review of Daniels and Sabin’s Setting Limits Fairly – Can We Learn to Share Medical Resources? (2002).” The New England Journal of Medicine. September 19.

Flynn-Burhoe, Maureen. 2007. “How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions.” >> Speechless . September 24.

Flynn-Burhoe, Maureen. 2007. “How to allocate scarce medical resources is a touchstone question with ethical, economic, social and political dimensions.” >> Google Docs . September 24.

http://docs.google.com/Doc?id=ddp3qxmz_370dx2m96



In his May 10, 2007 Address to Shareholders, Paul Desmarais Jr. CEO of the Power Corporation of Canada compared and contrasted his corporation with private equity and hedge funds.

In recent years private equity funds have grown at a phenomenal pace. Collectively they have brought about the privatization of public companies worldwide worth $900 billion! In 2006 alone, the 10 largest private equity funds raised $120 billion in new money destined for privatizations. At first an American phenomenon, private equity funds spread to Canada, the U.K., continental Europe and even Japan. Today in the U.K., 19% of private sector employees, or 3.3 million people, work for businesses owned by private equity firms. In Germany the number is 800,000.

In their early years, private equity funds often brought an added value and better governance to the companies they privatized by replacing ineffective and complacent boards of directors. While they were then generally met by fiercely resistant business managers opposed to privatization, nowadays their job is made easier by the growing number of public company executives who, frustrated by the tedious, distracting and costly compliance to modern-day governance rules and regulations, are more receptive to the idea of private equity funds taking them private. And, let’s not forget that, in today’s world, managers are more mobile and can gravitate to the numerous opportunities offered by private equity funds, where they can receive considerable compensation over a relatively short period of time, while being sheltered from public scrutiny and sensational headlines.

Meanwhile hedge funds, which by nature have a shorter time horizon, now number 9,000 and manage in excess of $1 trillion (that’s right, one thousand billions!). In 2006 alone, $126 billion of new money flowed into U.S. hedge funds. Their presence in the financial markets is substantial: for example, they account for between 30% and 50% of transactions on the New York and London stock exchanges! These funds are lightly regulated private investment pools which initially attracted endowment funds and wealthy individuals, but which today also have pension funds and insurance companies as investors.

While many hedge funds are devoted to generating short-term returns by leveraging financial instruments, I would like to focus on those funds which take positions in widely held public companies and become “activist shareholders” with the view of pressuring those companies into actions which, in turn, will quickly result in added value for shareholders, including themselves. Once they become shareholders, they will often align with other institutional investors who are shareholders of the company, and promote whatever initiatives could quickly generate added value: sale or spinoff s of divisions, cash dividends or repurchase of shares, and cuts in operating costs, are a few examples of what can be on their agenda, in addition to their ultimate goal of an outright sale of the company, which would fetch a premium for control (Desmarais 2007a:3.)

In the same month in an article published in the Canadian Council of Chief Executives journal National and Global Perspectives Desmarais warned of the structural impact on the industrialized world caused by the meteoric rise of private equity and hedge funds in the financial markets.

Is it not ironic that the principal investors in private equity and hedge funds – large institutional investors – are happy to put massive amounts of money in the hands of people who do not register with any securities commission, or have few, if any, governance regulations to adhere to and report on? (Desmarais 2007:16).

In the same edition both Gordon Nixon and Dominic D’Alessandro echoed their concerns.

In 2006, more than 100 of Canada’s public companies were acquired by foreign interests. The list includes some of the oldest and most well-established companies across a broad spectrum of industries – everything from hotels to retailing, to metals and mining [. . .] My concern stems from the fact that the world is awash with capital and that the consolidation trend in many industries will inevitably continue. We are a small country with a relatively small population. Canadian companies typically are not of a size to be global players. All too often, decisions affecting the future of important firms and the communities that they sustain are made solely with a view to the short-term financial consequences. I find it particularly bothersome that so many of our natural resource companies – which I would argue represent unique and irreplaceable assets – are now owned elsewhere (D’Alessandro 2007).

Over the past year, 116 Canadian public companies were acquired by foreign interests, more than any other major country including much bigger economies such as the United States, the United Kingdom, France and all the Nordic countries combined. We have not only seen the disappearance of major Canadian household names, but the loss of Canadian presence in industries where we have long had traditional strengths (Nixon 2007:5).

In May and June, 2007 the 150 C-Suite executives from the top 1000 corporations interviewed by the Gandalf Group were generally optimistic about the Canadian economy (Gandalf Group 2007:4). Some expressed concerns about the increasing levels of foreign ownership in key sectors and about private equity firms hollowing out corporate Canada. 23% have concerns that private equity firms engage in too much short-term thinking (Gandalf Group 2007:32). Most executives now favour restrictions in strategic industries.

The strongest areas of consensus about the negative impacts of private equity relate to keeping the company Canadian owned and about the debt burden of the company. A substantial percentage of executives believe that private equity also has a negative impact on the economic contribution the company will make to Canada and to the community it operates in, on the labour relations of the company and on the governance of the company (Gandalf Group 2007:28).

Bibliography

2006. “Canadian Executives Indicate Human Resources and Rising Canadian Dollar are the Major Business Challenges.” CTV. June 12, 2006.

http://www.ctv.ca/servlet/ArticleNews/show/CTVShows/20060611/ctv_release_20060611/20060612

2007. “C-Suite Survey.” Globe and Mail, Report on Business. 18 June 2007: B5.

http://www.theglobeandmail.com/servlet/Page/document/video/vs?id=RTGAM.20070619.wvcsuite0619&ids=RTGAM.20070619.wvcsuite0619&hub=search

D’Alessandro, Dominic. 2007. “How Can We Conserve Canadian Ownership?” National and Global Perspectives . May 3, 2007. p. 23.

Desmarais, Paul Jr. 2007. “Private equity, public interest.” National and Global Perspectives . May 10, 2007. p. 16.

Desmarais, Paul Jr. 2007a. “Chairman’s Address to Shareholders.” Power Corporation of Canada. May 10, 2007.

http://www.powercorporation.com/powercorp/webcast/2007/PCC_Eng_Discours_P_Desmarais_jr_2007_May11_FINAL.pdf

Gandalf Group. 2007. “C-Suite Survey On The Role of Private Equity.” Report on Business. Globe and Mail. June 14, 2007. http://www.dwpv.com/images/C-Suite_June_2007.pdf

Nixon, Gordon M. 2007. “As the world changes, Canada must adapt.” National and Global Perspectives . March 2, 2007.

Flynn-Burhoe, Maureen. 2007. “Meteoric Rise of Private Equity and Hedge Funds.” >> speechless. September 2007. http://docs.google.com/Doc?id=ddp3qxmz_355dbbcxv

Follow

Get every new post delivered to your Inbox.

Join 56 other followers