In the News
| Published date | 01 April 2011 |
| Date | 01 April 2011 |
| DOI | http://doi.org/10.1111/j.2041-9066.2011.00048.x |
| Subject Matter | In the News |
Future Spending
Rising debt and rising sea levels
are both burdens that we are self-
ishly passing on to our children and
grandchildren. Or are they? Mat-
thew Rendall of the University of
Nottingham has proposed that rich
countries fund a green transition
partly through deficit spending – and
argues that it would be entirely fair
to future generations to do so.
‘Running deficits is often seen as
a paradigmatic example of cheating
our children. Recent philosophical
analyses, however, have called this
assumption into question. We are
materially far richer than our ances-
tors. Provided growth continues,
our descendants will be richer than
we are, even if they bear a greater
burden of debt’, Dr Rendall argues
in a forthcoming article in Political
Studies.
‘What could knock out economic
growth for good? Runaway climate
change, with temperatures rising by
10, 20 degrees or more.’ While such
worst-case scenarios are not likely,
scholars like Harvard’s Martin Weitz-
man warn that they are possible, and
that they could effectively destroy
planet Earth as we know it.
‘Critics of strong action against
climate change often point out that
future people will be richer. But they
could end up far poorer. Many be-
lieve that we shouldn’t expose our
descendants to the chance of such
a disaster. Yet neither the South nor
even the North seems willing to
spend the money needed to avert
the risk.’
Dr Rendall suggests that we look
to the rich of the future. Those
countries that can borrow money to
fight climate change should. All can
divert investment from other sectors.
‘Our much richer descendants can
well afford to pay off some debt’, he
concludes, ‘if this ensures that they
really are richer’.
Material World
Since 2008, the European Union
has been looking to ensure access to
cheap raw materials for European
industry through trade and invest-
ment strategy, to improve access
to these materials in Europe and
to improve facilities for recycling.
Yet the long-awaited raw materials
strategy, announced earlier this year,
has already attracted criticism, writes
Political Insight’s Brussels correspond-
ent Fabrizio Pack.
Raw materials are an increasing
point of geopolitical contention,
as countries seek to ensure access
for their industries. A ‘race for re-
sources’ is currently under way in-
ternationally, with China occupying
a central role. There was conster-
nation in Brussels and Washington
recently when China halted exports
of rare earths to Japan over a trade
dispute.
China produces 97 per cent of the
world’s rare earths, and has been de-
creasing export quotas since 2005.
Rare earths are essential for the pro-
duction of modern electronic devices
and hardware.
European Commission President
José Manuel Barroso has stressed
the need for a clear EU raw materi-
als strategy that is linked to financial
reform. ‘In order to secure supply of
raw materials for the European in-
dustry for coming years, we need to
link this policy with our reforms of
the regulatory framework for finan-
cial markets’, he said.
However, the raw materials
strategy has drawn criticism from
environmental and trade non-
governmental organisations, who
have cited a lack of focus on recy-
cling and insufficient measures to
combat speculation on raw mate-
rials (including foodstuffs). Such
speculation has greatly exacerbated
the difficulties surrounding raw
materials, as speculators can control
the market price through creating
artificial scarcity.
The EU has also been accused of
short-sightedness. As one Brussels-
based expert said, ‘the EU is failing
to react to the changing social and
economic context in Europe – people
are demanding a less aggressive and
extractive trade policy, and want to
see the EU focus on reducing the
power of speculators over their daily
lives, and reducing consumption of
raw materials here at home’.
E-Petitioning
Government
The coalition government has an-
nounced that adopting online peti-
tions will be debated in Parliament
within a year. Under the proposals,
e-petitions that receive 100,000 sig-
natures or more will be eligible for
debate in Parliament. But already
there are question marks over the
procedures for e-petitions at West-
minster.
Dr Andy Williamson, Director of
the Hansard Society’s Digital Democ-
In the News
What could
knock out
economic
growth
for good?
Runaway
climate change
Press Association Images
2Political Insight
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