Tag: 21st

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Tariffs Trade Deficits

US Tariffs target the US trade deficits across the globe. For a start on the topic it is helpful to take a look at the data. The US bureau of census publishes this time series regularly. Currently, you can compare monthly or annual data across countries from 1985 to 2025. The worsening of the trade balance is obvious just looking into some examples like trade with the EU, China, Japan, South Korea or Switzerland. we might calculate some rough indicators of trade deficits of the US with countries by the size of the country, which would make Switzerland look really bad relative to many much more populous countries. This probably explains why Switzerland is threatened by higher tariffs than the EU. However, this hints towards the “hidden” agenda of tariffs on countries. The major targets are multinational companies that produce in countries outside the US and particularly in those with low corporate taxes, like Ireland and Switzerland. Importing products from such countries worsened the US trade balance over decades.

Another factor to study more precisely is the sectoral pattern driving the trade deficits with countries. Exports in for example health-related products have soared due to Covid-19 pandemic starting in 2019. Where did the US buy face masks, ventilators, medicines and pharmaceuticals?  These countries will now also be penalized by higher tariffs. The tariffs topic is a complex interconnected business issue, which is not solved by blunt measures. The real danger is that with each month trust in US will erode further. For decades this has been an underestimated currency of international business. Eroding trust is likely to be the major fallout of the tariff and trade deficit nexus. It takes decades to build, but can be destroyed within a few days or weeks. (Image: Mont des arts Brussels February 2024, celebration of surrealism).

 

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Ukraine Poets

Difficult times have a long history in Ukraine. However, literature and poetry have flourished since the Ukrainian independence from the Soviet domination in 1991. Periods of hunger under Stalin, Nazi crimes in the 2nd World War, Tschernobyl radiation, Annexation of Crimea and now Russian war on Ukrainian territories, the endurance of hardship is part of Ukrainian culture and society. This has created a strength of resistance and resilience which is exemplary for all countries. The democratic countries stand firmly on Ukraine‘s side and support not only military defense efforts, but also artists and poets in such difficult times.
A collection of translated poems from Ukrainian into English has been published in 2027/2018, showing the horrors of the large scale war that was to come a few years later. In fact from the Ukrainian perspective the annexation of Crimea was the first war initiated by Russia although the Western world did not want to see this as a brutal aggression, which it was. The poems in the anthology are available online for everyone to read and understand that war changes personalities. Suddenly, dying of old age becomes a blessing as many young soldiers and people die on the battlefields (Died of Old Age, by Lyuba Yakimchuk translation by Anatoly Kudryavitsky) .
7 years after the translations where published the poems have kept their sorrow and the reminder for us to continue our support for Ukraine‘s fight for democracy, independence and freedom of speech and the arts. (Image: Front: from War Diaries, Brussels 2025, shown in Gallery of Katarzyna Napiorkowska).

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Paris Vision

You got to have a vision in urban planning. Long term visions are best to then realize them step by step. The center of Paris has been restructured since the time of Haussmann at several places. The previous commercial center of Paris with « Les Halles » and the building of the commodities exchange « La Bourse de Commerce «  have been turned into a pedestrian area long ago. This axis runs nowadays from the home of the Pinault Collection to Les Halles almost to the Centre Pompidou (in the background of the image below). Whereas Les Halles is usually very popular and crowded with people the art museums are a bit less busy. Walking around in the area is offering amenities for people of all walks of life. It is an area, better called a pedestrian boulevard, where the wealthy and the poor may meet or at least pass by. Social urban planning is in high need to be considered as a vision not only for Paris, but many places and cities again. Inclusive societies also begin with a rather simple vision of togetherness putting people first.

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Ranking Enterprises

The Spanish economic newspaper has published on its front page an updated ranking of the top 10 Spanish companies using environmental, social and governance (ESG) criteria (see below). elEconomista.es on 2024-10-12 shows through this updated ranking that ESG criteria continue to be relevant information for investors. It is not just a nice to have information but gives important information on the sustainability record of a company. Continuous monitoring is key to show and reward the efforts and investments companies have made to improve sustainability. This information needs large distribution in order to keep up the awareness that there is more to a balance sheet than just turnover, profit margins, debts and investment. Churning of employees creates costs to society as a whole as well. Any early information on ESG indicators, therefore, allows a much broader assessment of the full impact of enterprises, 360 degrees and over time. Certainly a good example to follow up on.

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Sufficient

What do we mean by sufficient? Sufficient of what? French philosophers currently debate the topic under the French notion of sobriété (sobriety). They give as English translation sufficiency, but the notions do not match exactly in the usual understanding of the words. In breaking with the economic rationale of more is always better, the idea of having sufficient food, room to live in or social contacts to not feel lonely, the notion of sufficiency hints towards a rethinking of our customary lifestyles. How many trousers are sufficient? Well, as with shoes there might be gender differences or more generally interpersonal differences or preferences to come to the conclusion of how many is sufficient. If we bring in the notion of sobriety in additional, we allow another social and/or ecological dimension. This may redefine what is sufficient based on judgments how much our planet can handle (emissions) and distributional judgments. The western lifestyle of the last 100 years is no role model for other countries to follow. It is urgent to rethink our growth based economic model to develop new socially viable ways of production and consumption. It seems to be a necessary condition to reconsider the notion of wellbeing and wealth from a sufficiency perspective. It is a sobering thought, isn‘t it?

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Health GDP

A report by the WHO and the World Bank (2023) on universal health coverage and financial hardship has emphasized the difficulties to reach the goals defined by the strategic development goals (SDGs) by 2030 in this policy field. Moreover, the paper by Mazzucato and Ghebreyesus (2024) invites us to reconsider the importance of health in the overall assessment of development and progress. The authors ask us to “rethink the narrow focus on growth in gross domestic product (GDP) that typically dominates economic decision making”. There is of course a long debate on the status of health, GDP or wellbeing as major policy issues or even foundations of the a state’s major objective. For economists the question has been answered for decades to favor GDP growth and more or less the other objectives can be achieved with a time delay. Recently social scientists have highlighted the overall importance of wellbeing or happiness rather than GDP as stated in some constitutions. Health as an overall objective is another challenge to the existing economic framing of societies. In a traditional economic perspective the health sector is part of the GDP increasing public and private sector of the economy with insurers, equipment and persons contributing to it. On the other hand, health enters into the distribution or consumption part of the economy. Each country strikes its own balance between production and consumption. Put simply, in form of an equation where production equals consumption, health enters on both sides of the equation in each country. On the global, scale the distribution between costs and benefits of health have not narrowed over the past. The challenge for the world population remains steep. Considering unequal population growth across continents, the situation might get worse before it hopefully gets better. We still have to continue huge efforts to increase overall health on earth for example through large scale vaccination programs. (Image The tombstone of Molière in Paris 2024)

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Desertification

Since 2018 we have evidence of the progression of desertification into some Member States of the European Union. The mediterranean countries are concerned as well as regions of Bulgaria and Romania near the Black Sea. There are multiple sources of desertification. The 3 main reasons of desertification are soil erosion, loss of soil fertility and loss of natural and desirable vegetation besides wind or water erosion and salinization. We also know that man-made climate change is at the root of the past and recent problems. The statistical indicators of land degradation are collected by the European Joint Research Centre and these data show a dismal picture of land degradation in general and desertification as part of this process. A study by Ilea et al. published in Nature 2024 projects an intensification of extreme weather in the coming years. Higher temperatures will most likely enhance desertification and more frequent flooding will contribute to more soil erosion as well. It is a rather strange process that we know we are creating severe problems for some regions which endanger the roots of their existence and yet we do not act upon those undeniable facts (United Nations SDGs list). The amount and dynamics of land deterioration put the global South under severe pressure, but also the wealthy parts of the Mediterranean basin will be affected. It about time to acknowledge that we are all part of the global changes and challenges. (Image palm tree in Paris, Jardin du Luxembourg, 2024)

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Paris Experiment

The Olympic Games 2024 were prepared years ago. Already the application procedures to prepare “un dossier” has to bring in lots of ideas and imagination what is desirable and feasible. Paris opted for a celebration of sustainability in a city proud of its medieval heritage and the Haussmann tradition of radical transformations of a city with large boulevards and representative buildings. From the “Arc de Triomphe” the major axes of communication between “arrondissements” become visible. 100 years ago the city had already been transformed according to this master plan. At that time sanitation of a city meant different things than today. The invasion of inner cities by Diesel-driven cars made life unhealthy again. Now, the Olympics gave reasons to restrict cars and lorries passing the inner city and the great boulevards. More tourists need more space and shall keep a much better memory of how pleasant Paris was during the Olympic Games. This could be a game changer for urban development in general. The proportion of pedestrians versus cars has to be shifted in favor of the walking population for many reasons. Tourists will flock to the city, if the overall and shopping experiences are great. Back to the future sounds crazy, but it has an interesting flavor to it for urban renewal and residents as well. (Image Paris 2024-8, b/w color filter applied, enlarge to see vasque)

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Broken Promises

In a library catalogue, the entry of « broken promises «  returns more than 3000 times that the title has been used. « Promises kept » is almost as popular. A rapid inspection of titles reveals that the former titles suggest more factual analyses, whereas the latter is frequently used in the form of an imperative in combination with “should be kept”. The book by Fritz Bartel “The Triumph of Boken Promises …” (2022) demonstrates the importance of the concept of broken promises in the social sciences. The rivalry between socialism, capitalism and the rise of neoliberalism is strongly influenced by the way they handle the breaking of promises made to their respective societies. The promises of increasing wealth and wellbeing have been part of all political regimes. To keep these promises is a completely different story. Especially since the first and second oil crises and many other kinds of crises, it has become much harder to keep these promises. Working hours, retirement ages or minimum wages are all at risk to no longer live up to the promises made in earlier periods. This has put welfare states under pressure that millions of voters perceive politics as a “game” of broken promises. Socialist political regimes like Russia are ready to use physical violence to shut up people that remind leaders of these broken promises. In democracies the ballot box is often used to sanction governments that do not live up to expectations of previous promises. A lot is about public infrastructure which is failing people. Migration, education, social and labor reforms are on top of the political agenda if it comes down to broken promises. The elections of the European Parliament gave many a chance to express their discontent about various broken promises. Maybe democracy is better in providing forms of letting off steam early and protracted protests rather than the Russian way to suppress any critical analysis, let alone opposition movements. Just like the move from industrial production to services as production models, with AI we are likely to see similar problems and probably also broken promises. The challenge is huge and promises should be made with an eye of what promises could be kept.

Public swimming pool closed for reconstruction 2024
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EURO 2024

Before the EURO 2024, (European soccer championship) has even started, the host country Germany and the DFB- foundation for culture joined forces for a remarkable exhibition. In the “National Gallery of Contemporary Art” and next to the Berlin Hauptbahnhof a provocative video installation is mounted that uses the imagery of soccer (football) to portray the life and atmosphere associated with soccer. Injuries on the playing field, but even more so injuries caused by violent groups among the spectators create an emotionally charged representation before, during and after the match. The role of the umpire is central in the match and in the cultural project. Shattered dreams are part of the game for players as well as spectators. Visual impressions have contributed enormously to spectacular success of football on television. The masses of viewers has created a big business of television rights and merchandising products as well. The DFB Kulturstiftung undertakes great efforts to open up the discussion about soccer in a critical way through art projects. The entry into the installation resembles the entry of players through a tunnel into the huge stadium. The world of soccer has multiple links to physical and psychic violence. The installation “Winner” signed by Marianna Simnett challenges the media’s largely beautiful videos about the world of football. In the ocean of enthusiasm this exhibition is just a tiny grain of salt, adding spice to life.

Winner by Marianna Simnett 2024 Berlin