Desertec: Solar and Wind Energy

A project to generate energy for Europe from North Africa is being initiated by Desertec, see here.  Financial Times writes:

"... the most ambitious solar project is in north Africa. The Desertec Industrial Initiative is a plan to build a vast network of solar power plants and wind farms, covering the desert and stretching for hundreds of miles, and connected to an advanced electricity grid that will carry power generated round or under the Mediterranean sea to feed Europe’s appetite for energy.

Desertec – backed by a coalition of more than 10 big name companies, including Munich Re, the German insurer, Deutsche Bank, utilities RWE and Eon and Siemens – is likely to cost about $400bn (€302bn, £262bn). If successful, the project could supply as much as 15 per cent of Europe’s electricity needs by 2050."

What I found interesting is Desertec's request for donations for the project via the web, see here.  Desertec is empowering the individual to act through a validated message of need, yet the value needs to be made clear for the "call to action" to be advocated.

Predicted (Perceived) vs. Actual Social Behavior

A grand social policy shift was made in Portugal in 2001 - The decriminalization of drug use and possession. The Economist writes:

"The place was dubbed Europe's "most shameful neighbourhood" and its "worst drugs ghetto". The Times helpfully managed to find a young British backpacker sprawled comatose on a corner. This lurid coverage was prompted by a government decision to decriminalise the personal use and possession of all drugs, including heroin and cocaine. The police were told not to arrest anyone found taking any kind of drug."

Fast forward to 2009, the Economist quotes from a report on Portugal's decision and its outcomes:

"The number of addicts registered in drug-substitution programmes has risen from 6,000 in 1999 to over 24,000 in 2008, reflecting a big rise in treatment (but not in drug use). Between 2001 and 2007 the number of Portuguese who say they have taken heroin at least once in their lives increased from just 1% to 1.1%. For most other drugs, the figures have fallen: Portugal has one of Europe’s lowest lifetime usage rates for cannabis. And most notably, heroin and other drug abuse has decreased among vulnerable younger age-groups..."

"The share of heroin users who inject the drug has also fallen, from 45% before decriminalisation to 17% now, he says, because the new law has facilitated treatment and harm-reduction programmes. Drug addicts now account for only 20% of Portugal’s HIV cases, down from 56% before. “We no longer have to work under the paradox that exists in many countries of providing support and medical care to people the law considers criminals.”"

Hats off to Portugal for bringing innovation in social policy. See more data and read the complete article here at the Economist.

China Investing in Europe

China is on to its second round of investments in Europe. An excerpt from The American Chamber of Commerce in the People's Republic of China news article "Business delegation of over 20 Chinese enterprises flies to Europe for investment":

"March 7, another Chinese delegation comprised of businesses and industry leaders led by the Ministry of Commerce leaves to visit four European countries for investment and economic cooperation. The delegation is heading for Germany, Switzerland, Spain and Britain. The new delegation will explore investment opportunities in the areas of automobiles, machinery, textile, food, electronics and energy-conservation and environmental protection technologies. The delegation is composed of more than 20 top Chinese companies as well as several national trade associations and government officials."

A recent visit by a Chinese delegation is covered in the article "China spends $10b in Germany" here which states:

"Feb. 25-26, Minister of Commerce Chen Deming leads a business delegation to pay a visit to Germany and Switzerland. A total of 36 procurement contracts worth of more than $10b are signed between Chinese and German companies on Feb. 25. The Chinese business delegation arrives in Switzerland on Feb. 26. The two countries sign a Memorandum of Understanding to boost joint work in energy saving, environmental protection and trade & economy. In addition, the Chinese business delegation inks trade deals worth more than $300m with Swiss companies, such as ABB and Holcim for technical software, advanced electrical equipment, metals and raw materials."

Consumer Pricing and Service Growth

Many a times high service prices quelch the possibilities of growth that may have tangential ramifications on the consumer market. An example is the cost of text messages dropping substantially and being capped in Europe as discussed in BBC's article "Europe Backs Mobile Roaming Cap" here.