Wealth versus Opportunity . . . US right up there with Argentina

from a recent post to Quora <http://www.quora.com/> —

How true is it that “poor people” are “better off” in Canada than in the U.S.?

Jay KimJay Kim119 upvotes by Scott Welch, Jason MacDonald, Brett Williams, (more)

You should look at the Great Gatsby curve that was a study conducted by a Canadian labour economist in Statcan and then brought to the attention of US policy makers by Alan Krueger, a influential economist in the White House Council of Economic Advisors.
main-qimg-09a5c8e025331cc0bbf1837580af8c24?convert_to_webp=true
It linearly correlates the Gini index (a measure of wealth inequality) with intergenerational mobility (likelihood that you will be in the same income level as your parents in the future).

As you can see, Canada is at the bottom left and US is at the top-right. This means that if you’re parents are poor in the US, you are more likely to remain poor in the future. In Canada, you are more likely to be rich in the future. Conversely, if your parents are rich in the US, you are more likely to remain rich but in Canada, the chance of remaining rich is lower.

This curve has some scary implications for Americans, because it strikes at the core of what it means to be American. For one thing, it is statistically easier to achieve ‘the American Dream’ in Canada than it is in the US. Another thing is that Americans have this respectable notion that you can succeed in life as long as you work hard. However, the curve suggests that this notion is more true in Canada than it is in the US.

Some economists are predicting future increases in income inequality in the US which will mean US will be further top-right in the graph. This means it will become harder to become rich if you’re already poor and it’ll become harder to be poor if you are already rich.

Reason for this relationship could be because Canada, Denmark, Norway, Finland all have larger amounts of ‘non-labour income’ for the poor. Things like cheap-to-free education, free healthcare, more social welfare, etc. Of course this is all at the expense of the super-rich because of the progressive tax system.

Bloomberg has some nice visualization: http://www.bloomberg.com/infogra…

The White House and Congress are fully aware of the issue:
http://www.nber.org/erp/ERP_2012…

This is Krueger’s own analysis:
http://www.whitehouse.gov/sites/…

I believe this is why Obama is pushing for a ‘strong middle class’ because he is fully aware of this problem. Republicans are arguing that higher income inequality is needed for healthy competitive markets (e.g. by cutting taxes for large businesses) but the data suggests that this has serious ramifications for society.Updated Fri Apr 18 2014.

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Tree Falls — Forest Calls it In . . . .

This is one of those disruptive concepts that get you thinking about other interesting options. . . .

– – – – from the Scientific American <http://www.scientificamerican.com/article/if-poachers-and-illegal-loggers-strike-this-forest-phones-it-in/?WT.mc_id=SA_Facebook>

If Poachers and Illegal Loggers Strike, This Forest Phones It In

Environmentalists are bugging rainforests with discarded smartphones to catch poachers and illegal loggers
Jun 24, 2014 |By W. Wayt Gibbs

smartphones in forests

The smartphones, encased in waterproof housings and attached to a cluster of solar cells, look a bit like large black flowers.
Credit: Rainforest Connection via FlickrWhen a tree falls to illegal loggers in the forest of the Kalaweit Supayang Nature Conservation Reserve for gibbons in West Sumatra, Indonesia, it most definitely makes a sound—and generates a text message to alert reserve managers. Last summer a tiny, nonprofit start-up calledRainforest Connection installed a handful of old, donated smartphones, each tricked out with a solar charger and reprogrammed to conduct audio surveillance, into the forest canopy. The system quickly brought logging to a halt, says Topher White, a 31-year-old physicist who designed the system and founded the outfit.

Now, with the help of the Zoological Society of London (ZSL) and the KfW development bank in Germany, Rainforest Connection is preparing to deploy dozens of such listening devices in equatorial Africa to protect endangered forest elephants and their habitats. “This technology enables the forest to talk to the world,” says musician Neil Young in a video produced by Rainforest Connection for a fund-raising campaign it plans to launch today on Kickstarter. “The forest can speak—and you can hear it. They can hear the first saw, they can hear the rifle shots when people are shooting animals and shouldn’t be. They can tell when the forest is under attack by people who are breaking the law.”

The smartphones, encased in waterproof housings and attached to a cluster of solar cells, look a bit like large, black flowers. White mounts them high in the canopy, where they are hard to spot. The devices periodically record snippets of audio, which they transmit over the cheap local cellular network to a central server. The computer analyzes the audio waveforms as they come in. If the software detects the sound of chain saws, it triangulates the position of the logging and sends the info to workers at the preserve.

Within 24 hours of activating four strategically positioned bugs in the Kalaweit reserve, White says, the devices picked up illegal loggers and dispatched authorities. After two weeks of operation loggers stopped entering the 135-hectare region covered by the system. A year on, they have not returned, he says.

The project in Africa will be much larger, involving about 30 listening devices in the canopy of a 200,000-hectare forest in Cameroon that is important habitat for endangered elephants and lowland gorillas as well as chimpanzees. Each phone can pick up saws up to a kilometer away, so the network will directly protect roughly 10,000 hectares. By positioning the bugs around the periphery of the forest near roads and trails frequented by poachers and illegal loggers, White and the ZSL hope to effectively defend a large fraction of the forest.

The area includes three Forest Stewardship Council–certified logging concessions where timber is harvested legally—and on prearranged, sustainable timetables. “Beyond chain saws we will also be detecting vehicle movements along roads, allowing authorities to note when trucks are moving logs on roads where [or when] no such activity is planned or sanctioned,” White says. “To be blunt, providing an accounting for corruption within the concession—including illegal logging by those who work there—is amongst the primary goals of the pilot.”

“If it works as well as we hope,” says Lauren Redmore of the ZSL, “we will certainly look to expand to a larger deployment”—although, she and White acknowledge, cellular data coverage could be a limiting factor in remote areas.

High-tech surveillance is clearly not a panacea for deforestation, which continues to proceed at an alarming pace. To fight the problem, “we’ve used lawsuits, we’ve used government regulations, we’ve used consumer boycotts, we’ve used market pressure campaigns—and we need to continue using all of those avenues,” says Randy Hayes, founder of the Rainforest Action Network. “But frankly, we need more tools. And this is the most exciting, critical new tool that I’ve seen that I think can help us get the job done.”

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From the Liberation Tech E-mail Group: Launching Panic Button in Public Beta

If you have one app on your Android device . . . . . . from a great community of humanitarians . . .

Dear LibTech,

I’m glad to announce that today we’re releasing Panic Button in public beta on the Play Store. Panic Buttin is an open source Android app which allows individuals at risk of being arrested to discretely send SMS alerts with their location to their trusted contacts. It’s been a long road and many have helped bring the app to where it is now. The project was born with an Amnesty International Open Ideo challenge. Thoughtworks put together the software building blocks and hackathons were organised around the world including with the developers of Hancel in Mexico city. iilab then took the relay baton to bring the app to launch.

A lot of the work that has happened in the past 6 months together with Amnesty International, Frontline Defenders, the engine room and iilab has revolved around ensuring that the application’s user experience reinforced the security goals. We conducted frequent user testing during development, rolled out pilot trainings during our private beta and continued to work on the software based on this feedback. It’s still in Beta and there’s a lot more to do, but we feel it’s ready for a larger number of users to test it, and for the lib tech community to take a good look at it and ask the difficult questions.

The installation Wizard in the app is meant to not just help with understanding the functionality but also to reaffirm the security aspects related to using the app, most importantly the preparation that needs to be done offline with a network of trusted contacts that is able to act in case of an alert. We’ve put online materials that reinforce this point and tried to also present this content in an easy to digest form (with cartoons and a simple question answer widget and a checklist in the app itself). We can’t completely prevent users from endangering themselves of course, but we’re trying to make sure that they are as informed as possible. It is also obvious that making security trade-offs are part and parcel of human defenders’ daily decision-making in the face of many types of threats.

We’ve also drafted a document which presents the security goals of the app for a slightly more technical audience and as a basis for a threat model document which would guide further development. The main trade off from a security standpoint is that the ability of the app to alert a user’s trusted contacts rapidly is more relevant/important than the privacy of the user or their contacts. The disguise and discreet activation methods are only there to delay discovery, to allow a network to act and to mitigate harm. With no network ready to act, or no possibility to influence the outcomes, then using SMS alerts could reveal a user’s contact and do more harm than good. Hopefully, this will be clear to the user with our efforts put towards educational communication. Hopefully, individuals and organisations who adopt or promote the application, will also relay this message clearly.

Working with organisations like Amnesty International can help enable rich feedback loops which are invaluable when they can be integrated in the software development cycle. As there are more android apps targeting individuals and risk, such as the amazing work of Whisper System and Guardian Project or more recently Security First, there’ll be also more opportunities to create more reusable building blocks (both functional and educational) to help others build great apps, with different type of users in mind, and facilitating the reuse of security functionalities and content. I hope there’ll be more chances to hang out more with Nathan and Moxie and other developers of mobile apps. It’s always good to be around great human beings.

Cheers,

Jun–

Jun Matsushita
Founder, CEO

mobile: +44 7429 144 691
skype: junjulien

iilab.org
@iilab

information innovation lab

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Climate Adaptation Marketplace Launched on Coral Triangle Day

This from the IISD reporting service <http://biodiversity-l.iisd.org/news/climate-adaptation-marketplace-launched-on-coral-triangle-day/>

[I have to say, with no animus at all against this particular event and initiative, that every once in a while all of these special pre- and post- conference events or side events remind me of those (very) old Micky Rooney and Shirley Temple movies, where everyone is sort of moping around and suddenly Micky jumps up and says, “Hey gang, let’s make a circus!” So everyone jumps up and 30 minutes later there’s a three-ring circus with a parade led by St. Bernards towing red wagons, and trained pooches and cats leaping through flaming hoops and donkey-back riders and 600 people in the audience.

“Hey gang, let’s make a Climate Adaptation Marketplace! . . . . with Multistakeholder Engagement!! . . . and Public-Private-Public-Partnerships without End!!!”]

Climate Adaptation Marketplace Launched on Coral Triangle Day

Coral Triangle Initiative9 June 2014: Coral Triangle Day, which took place under the theme ‘Shared waters, Shared solutions,’ celebrated the marine biodiversity of the Coral Triangle region, which includes Indonesia, Malaysia, Papua New Guinea, Philippines, Solomon Islands and Timor-Leste. Events included community beach cleanups, film screenings, fisher education programs, sustainable seafood dinners, twitter campaigns and the launch of a 360° seaview infographic.

The day aimed to raise awareness on the Coral Triangle region, which hosts 86% of the world’s turtle species, 76% of the world’s coral species and 37% of the world’s coral reef fish species. In addition, 130 million people in the region depend directly on marine natural resources, according to the Coral Triangle Initiative on Coral Reefs, Fisheries and Food Security (CTI-CFF).

In celebration of the day, EcoAdapt and the World Wildlife Fund (WWF) launched the Coral Triangle Climate Adaptation Marketplace, an online portal that serves as a “matchmaking tool” between funders and project developers in the Coral Triangle region. The Marketplace aims to connect climate adaptation projects in the Coral Triangle region with funding sources based on three criteria: project location; adaptation focus; and project budget or grant amount. All six Coral Triangle countries plus Fiji are eligible to join the marketplace.

The marketplace “will help bring about more climate adaptation initiatives in the Coral Triangle and help strengthen the resilience of the millions of people in the region against the effects of climate change,” said Jackie Thomas, WWF Coral Triangle Programme Leader.

The Coral Triangle Support Partnership (CTSP) and the US Agency for International Development (USAID) provide support for the Marketplace. [Coral Triangle Day Website] [Coral Triangle Climate Adaptation Marketplace] [EcoAdapt Website] [WWF Coral Triangle Website]

read more: http://biodiversity-l.iisd.org/news/climate-adaptation-marketplace-launched-on-coral-triangle-day/

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IRF-News So after two or three generations of small island systems studies, this is the best we can do?

Bruce, It is said that adult development is based on experiential learning, and as you noted many years ago in a somewhat different context, we have experienced more than we have learned. It is sad that we seem to be unable — across countries, cultures or organizations — to foster cumulative learning — may be the Tea Party radio talk show hosts are right — we are nation of “low information voters.” On that depressing note I will go back to watching the nightly news.Ron
On Jun 11, 2014, at 3:40 PM, ‘Bruce G. Potter’ bpotter [irf-members-news] wrote:

This from “Mr. Wu’s Blog” on the official United Nations SIDS2014 web site at <http://www.sids2014.org/index.php?menu=1579>. This web site brings together most of the UN background information in preparation for the Third Conference on Small Island Developing States, which will be held in Apia, Samoa, 1 to 4 September, 2014.

Another issue on the SIDS2014 web site of probable interest to IRF supporters would be the “SIDS Partnerships Briefs” — perhaps one such partnership could be promoted to increase the velocity of transfer of academic research and information about critical small island conditions (such as unique economic constraints) for policy making application.

Thought it interesting . . . . I look forward to future analyses of other aspects of small island life.

Mr. Wu’s Blog on Economic Vulnerabilities
imagebig230_1.jpg

Much of the attention to SIDS has been directed to ecological vulnerabilities of SIDS. Indeed, to a significant extent it is these inherent and particular vulnerabilities that make for the special case of sustainable development of SIDS. However, as I remarked at the launch of the International Year of SIDS in February this year, what has received less attention is that these inherent vulnerabilities often exacerbate other social, economic and environmental problems. Here I would like to elaborate on some of the economic vulnerabilities. As indicated in the name of their grouping, SIDS are characterized by smallness. This feature gives rise to economic disadvantages, including narrow resource base and dependence on a limited number of goods and services for exports, high import dependence, small domestic markets, dependence on export markets, and limited ability to achieve economies of scale.

Coastal and marine resources, for example, are the main sources of economic activities and livelihoods for most SIDS. Tourism contributes to more than half of the GDP in some SIDS; in the Caribbean region, tourism generates over $25 billion in annual revenues, accounting for a quarter of the regional GDP and six million jobs. But this heavy dependence on tourism is often impacted by natural disasters and the vicissitudes of the global economy. Today – nearly six years after the onset of the world financial crisis – SIDS are still dealing with its fallout.

The decline in tourism in the aftermath of the global financial crisis contributed to the increase in public indebtedness of SIDS. The high import prices of food, fuel and other commodities have worsened their public debt ratios. As a result, a number of SIDS have debt burdens in excess of their GDPs, with more than 20% of government revenues allocated for debt servicing. Among other effects, high debt burdens constrain SIDS governments’ fiscal space, reduce their essential public expenditures and erode their abilities to invest in physical and social capital.

bigquote.png

Recognizing that economic growth has stalled in SIDS, Member States, in the ongoing consultations on the outcome document of the SIDS Conference, have emphasized the importance of achieving higher economic growth.

Wu Hongbo
UN DESA’s Under-Secretary-General & Secretary-General for the Third International Conference on SIDS

image18_495.jpg

Remoteness is another defining characteristic of SIDS that leads to economic disadvantages, especially in terms of transport and communication and access to world markets. Many SIDS face relatively higher transport costs, as they are often excluded from main air and sea transport routes, requiring relatively small and fragmented cargo deliveries. This in turn results in higher per-unit costs, eroding their economic competitiveness. Remoteness from the main trade routes also gives rise to delays in transport services. Moreover, SIDS have to contend with high energy dependence, which absorbs a significant amount of their export earnings. With rising oil prices, fuel import bills represent up to 20 percent of annual imports of SIDS, and between 5 to 20 percent of their GDP.

An expert group convened by UNCTAD two years ago demonstrated through evidence-based studies that SIDS are significantly more vulnerable to external shocks with economic consequences; they are considerably more exposed to oil price-related shocks; and their economies are structurally more vulnerable to climate change effects.

Recognizing that economic growth has stalled in SIDS, Member States, in the ongoing consultations on the outcome document of the SIDS Conference, have emphasized the importance of achieving higher economic growth. They are deliberating on a broad range of measures in support of SIDS economies, many of which address the problems I have highlighted here.

__._,_.___

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So after two or three generations of small island systems studies, this is the best we can do?

This from “Mr. Wu’s Blog” on the official United Nations SIDS2014 web site at <http://www.sids2014.org/index.php?menu=1579>. This web site brings together most of the UN background information in preparation for the Third Conference on Small Island Developing States, which will be held in Apia, Samoa, 1 to 4 September, 2014.

Another issue on the SIDS2014 web site of probable interest to IRF supporters would be the “SIDS Partnerships Briefs” — perhaps one such partnership could be promoted to increase the velocity of transfer of academic research and information about critical small island conditions (such as unique economic constraints) for policy making application.

Thought it interesting . . . . I look forward to future analyses of other aspects of small island life.

Mr. Wu’s Blog on Economic Vulnerabilities
imagebig230_1.jpg

Wu Hongbo
UN DESA’s Under-Secretary-General & Secretary-General for the Third International Conference on SIDS

Much of the attention to SIDS has been directed to ecological vulnerabilities of SIDS. Indeed, to a significant extent it is these inherent and particular vulnerabilities that make for the special case of sustainable development of SIDS. However, as I remarked at the launch of the International Year of SIDS in February this year, what has received less attention is that these inherent vulnerabilities often exacerbate other social, economic and environmental problems. Here I would like to elaborate on some of the economic vulnerabilities. As indicated in the name of their grouping, SIDS are characterized by smallness. This feature gives rise to economic disadvantages, including narrow resource base and dependence on a limited number of goods and services for exports, high import dependence, small domestic markets, dependence on export markets, and limited ability to achieve economies of scale.

Coastal and marine resources, for example, are the main sources of economic activities and livelihoods for most SIDS. Tourism contributes to more than half of the GDP in some SIDS; in the Caribbean region, tourism generates over $25 billion in annual revenues, accounting for a quarter of the regional GDP and six million jobs. But this heavy dependence on tourism is often impacted by natural disasters and the vicissitudes of the global economy. Today – nearly six years after the onset of the world financial crisis – SIDS are still dealing with its fallout.

The decline in tourism in the aftermath of the global financial crisis contributed to the increase in public indebtedness of SIDS. The high import prices of food, fuel and other commodities have worsened their public debt ratios. As a result, a number of SIDS have debt burdens in excess of their GDPs, with more than 20% of government revenues allocated for debt servicing. Among other effects, high debt burdens constrain SIDS governments’ fiscal space, reduce their essential public expenditures and erode their abilities to invest in physical and social capital.

Recognizing that economic growth has stalled in SIDS, Member States, in the ongoing consultations on the outcome document of the SIDS Conference, have emphasized the importance of achieving higher economic growth.

image18_495.jpg

Remoteness is another defining characteristic of SIDS that leads to economic disadvantages, especially in terms of transport and communication and access to world markets. Many SIDS face relatively higher transport costs, as they are often excluded from main air and sea transport routes, requiring relatively small and fragmented cargo deliveries. This in turn results in higher per-unit costs, eroding their economic competitiveness. Remoteness from the main trade routes also gives rise to delays in transport services. Moreover, SIDS have to contend with high energy dependence, which absorbs a significant amount of their export earnings. With rising oil prices, fuel import bills represent up to 20 percent of annual imports of SIDS, and between 5 to 20 percent of their GDP.

An expert group convened by UNCTAD two years ago demonstrated through evidence-based studies that SIDS are significantly more vulnerable to external shocks with economic consequences; they are considerably more exposed to oil price-related shocks; and their economies are structurally more vulnerable to climate change effects.

Recognizing that economic growth has stalled in SIDS, Member States, in the ongoing consultations on the outcome document of the SIDS Conference, have emphasized the importance of achieving higher economic growth. They are deliberating on a broad range of measures in support of SIDS economies, many of which address the problems I have highlighted here.

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Enviros Seeking to Overturn 30 Years Practice in City-County Development Permits BEWARE

Keep in mind the figure “$5 million” — that’s likely to be the right ballpark for a total legal costs budget for groups seeking a TOTAL DEVELOPMENT MORATORIUM (at least for more than three weeks!) plus NEW LAW, seeking to give Anne Arundel County control over all development permitting in the city of Annapolis. This rather confusing “bank shot” strategy seems to be what the Annapolis Neck Coalition has settled on in order to stop the Crystal Springs Farm and Reserve at Quiet Waters.

Here’s the cautionary tale of the legal costs incurred by Salisbury, Maryland for a much simpler contract dispute over the construction/upgrade of a wastewater treatment plant.

Legal fees take chunk of city wastewater moneyThe (Sailisbury, Md.) Daily Times

Legal fees take chunk of city wastewater money

Jeremy Cox, DelmarvaNow.com 8:08 p.m. EDT June 2, 2014
(Photo: STAFF PHOTO BY LAURA EMMONS )

Story Highlights

  • The city has collected nearly $13 million in lawsuits related to a botched upgrade project at its sewage treatment plant.
  • Of that, though, more than $4 million is going to legal fees.
  • City officials say that’s money well spent on an intricate and lengthy negotiations and court battle.

In the end, the city of Salisbury retrieved nearly $13 million from the contractors and engineers involved in its debacle of a sewage treatment plant upgrade.

But it didn’t come cheap.

The municipality had to hand over about $4.7 million of that sum in legal fees.

The Pikesville law firm of Goldberg & Banks, which shepherded the city through the lengthy legal battle, received the lion’s share of the amount, city officials say. The balance covered fees for expert witnesses and the city’s in-house legal firm.

It was money well spent, the city’s elected officials say.

“I knew from the time I came into office that we were going to have to get an incredible law team that specialized in these types of cases, and that’s what we got,” said Mayor Jim Ireton, who inherited the tangled legal dispute when he was first elected in 2009.

The saga came to an anti-climatic close recently when Maryland’s highest court declined to hear an appeal filed by the project’s construction manager. Construction Dynamics Group had sought to overturn a jury’s 2012 ruling that it repay the $2.7 million it got from the city.

Councilman Tim Spies and Council President Jake Day don’t see eye to eye on several city issues. But they agree that the $4.7 million in legal fees, though painful, had to be spent.

“It was a heavily specialized case,” Spies said during a break from Monday’s council work session.

“And the appeal,” Day chimed in from the next chair over. “It got stretched to the nth and final degree. I don’t think anyone likes paying lawyers.”

“But,” Spies quipped, “they must be paid.”

Attorney Howard Goldberg, who represented the city in negotiations and in court, didn’t return a call seeking comment Monday. The firm says on its website that it offers clients “over 80 years of combined experience in complex civil litigation and representing participants in the building and construction industry.”

Goldberg serves as a mediator and arbitrator for both the American Arbitration Association and private alternative dispute resolution, according to the site. And the firm specializes in clashes involving commercial law, insurance coverage, intellectual property and labor and employment law.

“10 percent or nothing”

The city’s dispute grew to be as complicated as the wastewater technology at its heart.

The plant was one of 66 around Maryland targeted for upgrades to improve its nutrient-removal capability. The goal was to reduce its nitrogen and phosphorus output by 70 percent to help clean up waterways leading to the Chesapeake Bay.

City leaders chose a first-of-its-kind technology that promised to reduce maintenance costs and remove more waste and bacteria from the treated wastewater. The plant reduced the concentration of nitrogen in wastewater flowing into the Wicomico River from 21 to 15 milligrams per liter — well above the 6 milligram limit set by the Maryland Department of the Environment.

In September 2012, the agency signed a consent order with the city, requiring officials to get the plant to produce effluent that meets the requirement by the end of 2017.

Construction on the $68 million fix is on pace to begin in June 2015. The state is shouldering nearly $25 million of that share while the city plans to get a $36 million, 0-percent interest loan.

In the meantime, the city has settled its legal disputes with three of the companies involved in the original construction. The most notable was the $10 million settlement with engineering company O’Brien & Gere, which was in charge of the design.

The Construction Dynamics case was the only one to go to court. The case ultimately took more than three years to resolve. The jury trial lasted for 10 days and involved more than 400 pieces of evidence.

After legal fees, all the battles ended up netting the city $8 million, or about 10 percent of the original planning and construction cost of the upgrades.

But “it was either 10 percent or nothing,” Ireton said.

The city could have pressed for more cash, Ireton said, but it might have ended up with nothing. During early negotiations, some of the companies indicated that if the city asked for too much, they would simply declare bankruptcy.

Determining what’s fair in attorneys fees is an inexact science. The Maryland Lawyers’ Rules of Professional Conduct states that its followers “shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses.”

But what is “reasonable” is often a matter of debate.

Maryland’s court system offers clients a way to dispute attorney fees, but that doesn’t seem like it’s going to happen in Salisbury.

Day, for one, said the $8 million isn’t exactly found money, “but it feels good for the public to get that money back.”

That money is as good as spent. In the budget that goes into effect July 1, the city set it aside to renovate three sewage pump stations and drill a new drinking water well.

jcox6•410-845-4630•On Twitter @Jeremy_Cox

80

cost in millions of dollars from 2005 to 2009 for planning and construction of upgrades at the Salisbury Wastewater Treatment Plant on Fitzwater Street

12.7

amount in millions of dollars retrieved by city in lawsuits against companies responsible for upgrades

4.7

amount in millions of the $12.7 million that went toward legal fees

Projects to be funded by lawsuit proceeds

Parkside Pump Station: $1.36 million

Fitzwater Street Pump Station: $2.81 million

Hampshire Road Pump Station: $1.59 million

Paleo Well No. 3: $2.85 million

Total: $8.6 million

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What Development Projects Really Produce

Happened to run across this Table of Contents for the reports of an important (some would claim the MOST important) small island capital program in the Caribbean. The program has several parallel tracks in several locations. In duration, it is well beyond mid-point and seems to be better managed and reported than most (based on a half century of work in the field).

Here’s the Table of Contents:

Unless this is a papermaking or recycling project I think this illustrates a problem.

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How the New Digital Age Will Affect Us in the Future: e.g., Farming

A good example from the Schumpeter Blog in the Economist, May 14th <http://www.economist.com/news/business/21602757-managers-most-traditional-industries-distrust-promising-new-technology-digital>-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

Schumpeter

Digital disruption on the farm

Managers in the most traditional of industries distrust a promising new technology

May 24th 2014 | From the print edition

INNOVATION is a word that brings to mind small, nimble startups doing clever things with cutting-edge technology. But it is also vital in large, long-established industries—and they do not come much larger or older than agriculture. Farmers can be among the most hidebound of managers, so it is no surprise that they are nervous about a new idea called prescriptive planting, which is set to disrupt their business. In essence, it is a system that tells them with great precision which seeds to plant and how to cultivate them in each patch of land. It could be the biggest change to agriculture in rich countries since genetically modified crops. And it is proving nearly as controversial, since it raises profound questions about who owns the information on which the service is based. It also plunges stick-in-the-mud farmers into an unfamiliar world of “big data” and privacy battles.

Monsanto’s prescriptive-planting system, FieldScripts, had its first trials last year and is now on sale in four American states. Its story begins in 2006 with a Silicon Valley startup, the Climate Corporation. Set up by two former Google employees, it used remote sensing and other cartographic techniques to map every field in America (all 25m of them) and superimpose on that all the climate information that it could find. By 2010 its database contained 150 billion soil observations and 10 trillion weather-simulation points.

FieldScripts uses all these data to run machines made by Precision Planting, a company Monsanto bought in 2012, which makes seed drills and other devices pulled along behind tractors. Planters have changed radically since they were simple boxes that pushed seeds into the soil at fixed intervals. Some now steer themselves using GPS. Monsanto’s, loaded with data, can plant a field with different varieties at different depths and spacings, varying all this according to the weather. It is as if a farmer can know each of his plants by name.The Climate Corporation planned to use these data to sell crop insurance. But last October Monsanto bought the company for about $1 billion—one of the biggest takeovers of a data firm yet seen. Monsanto, the world’s largest hybrid-seed producer, has a library of hundreds of thousands of seeds, and terabytes of data on their yields. By adding these to the Climate Corporation’s soil- and-weather database, it produced a map of America which says which seed grows best in which field, under what conditions.

Prescriptive planting is catching on fast. Last November another seed producer, Du Pont Pioneer, linked up with a farm-machinery maker, John Deere, to beam advice on seeds and fertilisers to farmers in the field. A farm-supply co-operative, Land O’Lakes, bought Geosys, a satellite-imaging company, in December 2013, to boost its farm-data business.

The benefits are clear. Farmers who have tried Monsanto’s system say it has pushed up yields by roughly 5% over two years, a feat no other single intervention could match. The seed companies think providing more data to farmers could increase America’s maize yield from 160 bushels an acre (10 tonnes a hectare) to 200 bushels—giving a terrific boost to growers’ meagre margins.

But the story of prescriptive planting is also a cautionary tale about the conflicts that arise when data entrepreneurs meet old-fashioned businessfolk. Farmers might be expected to have mixed feelings about the technology anyway: although it boosts yields, it reduces the role of discretion and skill in farming—their core competence. However, the bigger problem is that farmers distrust the companies peddling this new method. They fear that the stream of detailed data they are providing on their harvests might be misused. Their commercial secrets could be sold, or leak to rival farmers; the prescriptive-planting firms might even use the data to buy underperforming farms and run them in competition with the farmers; or the companies could use the highly sensitive data on harvests to trade on the commodity markets, to the detriment of farmers who sell into those markets.

Looking a gift horse in the mouth

In response to such worries, the American Farm Bureau, the country’s largest organisation of farmers and ranchers, is drawing up a code of conduct, saying that farmers own and control their data; that companies may not use the information except for the purpose for which it was given; and that they must not sell or give it to third parties. The companies agree with those principles, though so far their contracts with farmers do not always embody them. Also, once data have been sent and anonymised, farmers might be said no longer to own them, so it is not clear what rights to them they still have. For this reason and others, some Texan farmers have banded together to form the Grower Information Services Co-operative, to negotiate with the data providers.

Another worry is that, since the companies have not yet made the data fully “portable”, farmers may become locked into doing business with a single provider. To assuage all these concerns, the Climate Corporation has set up a free data-storage service for farmers, which others cannot access without the farmers’ permission. New niche data-management firms are entering the market, which should help make it more competitive.

For the time being, though, the biggest companies will dominate prescriptive planting. They collect the most comprehensive data and make better use of them than anyone else. And that raises a problem which affects big data in all its forms. Prescriptive planting could boost yields everywhere, just as mass, anonymised patient records could improve health care. But its success depends on service providers persuading users (farmers or patients) to trust them. If the users think they are taking a disproportionate share of the risks while firms are getting an excessive chunk of the benefits, trust will remain in short supply.

Economist.com/blogs/schumpeter

From the print edition: Business

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NY Times: Buying Insurance Against Climate Change — Mentions Caribbean Models.

from the Sunday NY Times <http://www.nytimes.com/2014/05/25/upshot/buying-insurance-against-climate-change.html>

Buying Insurance Against Climate Change

MAY 24, 2014

Photo

The Alliance of Small Island States has been arguing for an international approach to dealing with losses from climate change. Here, Tarawa in Kiribati, an alliance member battling rising sea levels. Credit Kadir Van Lohuizen/NOOR
Economic View

By ROBERT J. SHILLER

The third National Climate Assessment report — released on May 6 by the White House, and representing the work of more than 240 scientists — warns us about our hazardous future and offers many good ideas for dealing with it. But a most important point may be lost in the crowd.
After discussing how to mitigate the coming dangers, the report says, “Commercially available mechanisms such as insurance can also play a role in providing protection against losses due to climate change.” That sentence should have been in big, bold letters and underlined.

That’s because of the substantial risk that efforts to stop global warming will fail. The implications are staggering, and we must encourage private innovation and government support to insure against the devastating financial losses that will result.

The problem is an age-old one: Each country has a strong individual incentive to take a free ride on the rest of the world — to find self-serving or nationalistic justifications for adding carbon dioxide and other pollutants to the global air supply. Such behavior, which in some ways might benefit the individual country while hurting everyone else, is known in economics as an externality problem, and the world has never solved one of this magnitude. We must face facts: There is a real risk of new kinds of climate-related disaster.

In his latest book, “The Climate Casino: Risk, Uncertainty and Economics for a Warming World” (Yale University Press), my Yale colleague William D. Nordhaus describes the uncertainty of global warming’s specific effects around the world. We are taking major gambles with our environment, he says. Expect surprises.

In March, a United Nations report identified with “high confidence” a number of risks that will be visited on different people unequally. It spoke of the “risk of death, injury, ill health or disrupted livelihoods” in low-lying coastal zones and on small islands — and that is just the start. Food systems may break down. There may not be enough water for drinking and irrigation. Ecosystems may be shattered.

In short, we need to worry about the potential for greater-than-expected disasters, especially those that concentrate their fury on specific places or circumstances, many of which we cannot now predict.

That’s why global warming needs to be addressed by the private institutions of risk management, such as insurance and securitization. They have deep experience in smoothing out disasters’ effects by sharing them among large numbers of people. The people or entities that are hit hardest are helped by those less badly damaged.

But these institutions need ways to deal with such grand-scale issues. Governments should recognize that by giving these businesses a profit incentive to prepare for these unevenly distributed disasters. After all, fire insurance does no good unless you buy it before the house burns down. And you have to diversify your portfolio before the stock market crashes.

Fortunately, we aren’t too late to take action to insure against some climate risks. And yet this has not been a major element in most of the climate debate.

We already have weather derivatives that can help, like the 50 contracts in 13 countries offered by the Chicago Mercantile Exchange. A ski resort can already buy protection against inadequate snowfall and a city can buy protection against too much snowfall next winter by, in effect, taking the opposite side of the same futures contract (through the exchange), thereby pooling their opposite risks. There are also catastrophe bonds, like the three-year, $1.5 billion Everglades Re Ltd. issue sponsored this month by the Citizens Property Insurance Corporation. It would provide relief to the insurer of Floridians hit by a bad hurricane; in such an event, the bond holders would bear losses.

But there is a problem with instruments like these: They tend to focus on relatively short-term risks, and don’t hedge against the increasing cost of disasters over distant future years. Yet if the problems of global warming become more serious, they will very likely be long-lasting, raising some complex, tough-to-quantify issues. Some kinds of crises, like hurricanes, may remain intermittent, but their tendency toward severity may build in a slow, hard-to-predict process and in complex geographical patterns.

Psychologically, it’s hard for most of us to take the initiative on long-term, ill-defined risks. Three scholars — Howard C. Kunreuther and Mark V. Pauly of the University of Pennsylvania and Stacey McMorrow of the Urban Institute — show this in their book, “Insurance and Behavioral Economics: Improving Decisions in the Most Misunderstood Industry” (Cambridge University Press). But they argue that if we’re aware of them, these psychological impediments can be reduced, and they urge the innovation of long-term risk management contracts that address the problem of climate change.

Some progress is being made: The Caribbean Catastrophe Risk Insurance Facility is one recent example of institutional sharing of climate risks. Then there is the Alliance of Small Island States, formed in 1990 as a response to climate change. The group represents 5 percent of the world’s population, and its island members are scattered around the globe. But if sea levels rise substantially, all of them will be affected. These countries generally aren’t big enough to have a heartland that can help coastal dwellers in a climate catastrophe. The alliance has been arguing for an international approach to dealing with such loss and damage.

These are only beginnings. We have a crucial need to bring innovation to our risk-management institutions. We need to make them flexible, to clarify their long-term international legal status, to develop mechanisms and indexes that can be the basis of long-term risk management contracts and to educate the public about them. Most important, we need concrete action now to build a mechanism that will provide real help for the victims of climate-change disasters.

ROBERT J. SHILLER is Sterling Professor of Economics at Yale.

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