Image of the Day – Germany at a Crossroads

Deutschland_topo

Germany, which accounts for an estimated 21% of the European Union’s GDP and has an unemployment rate that is less than half as high as the EU average, is now facing five big economic challenges:

1. Germany has one of the oldest populations in the world: it’s old age dependency ratio is as high as Greece’s and higher than any other country apart from Italy and Japan; the share of its population aged 80 or older is higher than in any European country apart from France or the “PIGS” (Portugal, Italy, Greece, and Spain). The largest portion of Germany’s population is between 45-60 years old. Old age is beckoning.

2. Whereas Britain, France, Italy, Russia, India, China, and Turkey depend on exports of goods and services to account for an estimated 20-30 percent of their GDPs, and the United States, Japan, and Brazil for just 10-20 percent, Germany gets approximately 46 percent of its GDP from exports. As economies throughout Europe and the developing world are simultaneously growing slowly right now, such a dependence on exports may not be a good thing to have.

3. Low energy prices are not likely to benefit Germany as much as many think, nor will they benefit Germany’s neighbours in northern Europe, central Europe, or especially the former Soviet Union too much (see links for more: herehere, or here). According to the Wall Street Journal, oil imports account for just an estimated 2.4% percent of Germany’s GDP, compared to 3-6% in Spain, Greece, Turkey, Poland, Japan, South Korea, Taiwan, and India, while, according to the World Bank, imports of energy in general account for approximately 62% percent of Germany’s overall energy use, compared to 70-95% in Spain, Portugal, Italy, Turkey, South Korea, and Japan.

4. Germany is facing economic and political diminishing returns in its eastward economic integration. In the past generation it has looked to East Germany and Eastern Europe, but Eastern European countries are no longer so cheap. Czech Republic and Slovakia now have nominal per capita GDP’s of around $19,000, for instance, up from just $5700 in the year 2000; Russia has reached $14,000, up from $1800 in 2000. Increasingly there are also political limitations of various sorts to German involvement to its east. Many Eastern European countries, for example, would rather not see the Germans and Russians become too close with one another economically, and also do not want to become German economic satellites themselves. Things may be becoming more politically fraught than they were a decade or two ago.

5. A similar dynamic is true of Germany’s domestic politics. In the 1990s Germans could unite over the goal of German reunification, while in the 2000s they could unite over European expansion into Eastern Europe, a region located for the most part directly on the borders of Germany or German-speaking Austria. Now, though, with both those goals having been realized to a large extent, there could be room for inter-German regionalism to become more prominent.

It has still been just 145 years since German unification, and 25 since reunification; the three-way divide between eastern Germany, western Germany, and southern Germany, aka Bavaria, may still be somewhat in play. This was seen recently, when Merkel’s longstanding political coalition finally came under pressure as a result of internal opposition from Bavaria over the refugee issue. Germany is under no threat of dissolution, obviously, but regionalism could nevertheless threaten the ability of its central government to continue forming majorities, and it could threaten the ability of any majority governments it does form to take decisive political action.

Germany’s parliament is already regionally split to a slight degree: the Christian Social Union in Bavaria, the regional sister-party of Angela Merkel’s national Christian Democratic Union, holds 7 percent of the seats in Germany’s parliament. Southern German states, moreover, in particular Bavaria but also neighbouring Baden-Wurttemberg, tend to be more right-wing in their voting patterns, whereas eastern German ones tend to be the most left-wing. (Here’s an article describing some of the geographical patterns in Germany’s 2013 election). Bavaria and Baden-Wurttemberg are the second and third most populous of Germany’s 16 states, and have the closest ties to Austria.

There may be other triggers as well for  regionalist challenges within Germany. If, for example, Europe’s banking and political system, which is currently under pressure from struggling economies like Italy, Greece, and France, ends up being badly damaged, it may hurt western or southern Germany more than eastern Germany. This is because Frankfurt (in central-western Germany) is Europe’s banking and transportation hub, and because southern Germany has relatively close connections with nearby northern Italy while western Germany is relatively close with France,  Belgium, and the Netherlands (the latter two being Europe’s political and shipping hubs). Of course, this is all extremely speculative; I am not actually saying that  political regionalism will reemerge within Germany, only that it cannot be ruled out.

The Crossroads

There are, perhaps, two basic roads Germany can now go down. One is to become a more nationalist, more insular country. German nationalism could be used as a tool to attempt to bring about cooperation in parliament. Germany could restrict immigration flows as most other countries (and Bavaria) have wanted to do. Germany could try to use technology rather than immigration to solve its looming old-age crisis. And Germany could attempt to overcome its dependence on exports by reorienting its economy: either by having the government buy up the surplus goods that Germany now exports to other countries, or else by producing fewer goods and attempting the difficult task of making money in other ways instead.

On the other extreme, Germany could become even less nationalist and even less insular than it is now — and it is already quite a bit less nationalist or insular than most other countries, as a result of its 20th century history and export-intensive economy. It could continue to welcome immigrants from places like Africa, Arabia, and Asia, which could help it to address its old-age problem and, along with the population of Turks and many other groups already living in Germany, would make Germany a globally diverse country, somewhat like Canada, Britain, and the United States are. Germany could continue to happily use the English language without being worried that this will threaten the German language, rather than move towards a linguistic protectionist model as countries like France often have. And Germany could continue to integrate economically with Eastern Europe, Russia, and Turkey, but become so non-nationalist in its identity that this expansion will not be as likely to create a political backlash.

Which direction will Germany choose? I suspect, regretfully, that it will be the former. Nationalism may simply be too difficult for a nation to overcome.

 


For more, read Germany’s Trade Empire

 

Image of the Day — Unique New York

Michael_R_BloombergMTE4MDAzNDEwMDU4NTc3NDIy

Last a month a report in the New York Times suggested that Michael Bloomberg, the mayor of New York City from 2002 until 2014, has been thinking about running for President of the United States as a third-party candidate, and may be willing to spend as much as a billion dollars of his own money to do so. Today, on the sole day between the end of football season and the start of ex-Iowa primary season, Bloomberg himself confirmed that report.

According to MarketWatch, this is “the first time Bloomberg himself has said he might run, though his surrogates have told other outlets the former New York City mayor and founder of Bloomberg LP was considering such a move. ‘I find the level of political discourse and discussion distressingly banal and an outrage and an insult to the voters,’ said Bloomberg”.

The Bloomberg strategy is a fairly simple one: first you take Manhattan, then you take D.C. The idea would be for him to secure huge amounts of donor money and media support available in New York City, as well as the 5.4% of America’s electoral college points that you get by winning New York state in the general election, and then use those assets in order to lure people outside of New York to vote Bloomberg on election day too, hoping that enough Americans will not want to vote for a non-centrist candidate like Donald Trump, Ted Cruz, or Bernie Sanders.

While it still seems quite unlikely that Bloomberg would attempt to pull this off, it cannot be ruled out entirely, in particular because of the following constitutional catch: if none of the candidates in the general election wins more than 50% of the electoral college votes, then the president of the United States is chosen instead by a state-majority vote in the House of Representatives, wherein the congressmen and congresswomen representing each state vote amongst themselves to determine which presidential candidate their state desires. The candidate which has the backing of a majority of states then becomes president, while the vice-president is chosen by the Senate.

In such a vote, Alaska’s one congressman would have as much power as all of California’s dozens of congressmen put together. This vote would probably favour right-wing establishment candidates, since most states and congressional districts in the country tend to be relatively right-wing, Congress is currently controlled by a Republican majority, and congressmen tend to be establishmentarians. If it ever came to this, then, a candidate like Bloomberg might have something of an advantage over one like Cruz, Trump, Sanders, or, perhaps, Clinton.

Could it ever come to this? Well, it did in 1824, when “four candidates ran for president… Andrew Jackson got the most votes from Americans and the most votes in the Electoral College, but not a majority, so the race was turned over to the House of Representatives voting as states who picked John Quincy Adams instead.” Crucially, if Bloomberg could secure a victory in New York state in the general election, that alone might make it relatively difficult for one of the other two candidates to win an electoral college majority.

If, for example, Jimmy Carter had lost New York in 1976 to a third-party candidate, Carter still would have gotten more votes than his Republican opponent Gerald Ford, yet would have fallen short of the electoral college majority needed to avoid turning the vote over to Congress. Had a third-party candidate won New York, Pennsylvania, and Iowa instead of Obama in 2012, Obama would not have won a majority in the electoral college, which would have meant that the Congress would have been able to vote to select the president of the country instead.

What Bloomberg’s public presidential mulling-over really indicates, then, is the enduring power of both the state and city of New York. This is actually not just a Bloombergnagian phenomenon: Hilary Clinton served as one New York state’s two senators from 2001 to 2009, Bernie Sanders was born and raised in Brooklyn, and Trump in Queens. (Even Chris Christie has influence over bridges that reach New York). For a while there was also some presidential buzz about New York’s current governor Andrew Cuomo, who’s father Mario was also a longtime governor of New York and came relatively close to becoming president in 1988 and 1992.

At this point, in fact, the only leading candidates who do not have ties to New York are those who have ties to Florida: Rubio is a Florida senator and son of Cuban immigrants, Jeb Bush used to be a Florida governor and is near-fluent in Spanish, Cruz’s father is from Cuba (though Cruz is himself a senator representing Texas), and Trump has usually lived in Florida when not living in Manhattan.

New York is also a somewhat peculiar state, politically. Though on the one hand it is the heartland of liberal America (along with California, of course), on the other hand it has politics that are in some ways quite Republican-esque. It has, for instance, groups that are strongly pro-finance (because a lot of its money and jobs come directly or indirectly from Wall Street), pro-Israel (because it is home to an estimated 26% of America’s approximately 6.8 million Jews …some of whom would also be happy to see Bloomberg or Sanders become the first Jewish president rather than see Hilary become the second Clinton president), and pro-security (because it has been the main terrorist target in America, not only on 9-11 but in many other cases as well).

New York also has a sizeable right-leaning “upstate” region, in which potentially significant shale energy reserves are located. Unlike in nearby states, such as newly gas-rich Pennsylvania, New York has not yet been allowed to develop these resources. Some upstate New Yorkers may therefore be hoping for a president who will support the removal of the fracking moratorium in the state, so that they too can participate in the regional shale bonanza.

1988_large

The last time New York voted for a non-Democratic candidate was in 1984 when, along with most of the other states in the country, it approved of a second term for Ronald Reagan. In the following election of 1988, however, New York was one of just 10 states, and the only populous state, to vote against George H. W. Bush, who had been Reagan’s vice president. Will New York vote against a candidate from the Democratic Party again in 2016? Probably not, but of course we will soon find out.

 

 

 

 

 

 

 

Image of the Day – Islands of the Atlantic

As a follow up to the post about Pacific islands from last month, I decided to make another chart showing islands in the Atlantic. This chart is not as extensive as the previous one, though; it only shows islands that have populations between 100,000 and 1 million. Also, it may be missing a couple of islands, or have population statistics that are already a bit outdated, so if you spot a missing island or a population mistake please post a comment about it below. And if you have a favourite Atlantic island, I would like to hear about that as well!

atlantic islands

Image of the Day – US States

pop dens

The graph above shows the population densities of the 19 states in America that have at least 6 million people living in them. (Of the other 31 American states, 20 have fewer than 3 million inhabitants, 14 have fewer than 2 million inhabitants, and 6 have fewer than 1 million inhabitants). The graph below also shows the populations of these states. As you can see, New Jersey stands out for its high population density and high population size, while Texas and Arizona stand out for their low population densities and high population sizes.

pop dens 2

On the other extreme, Alaska and Wyoming stand out for their low population densities and low population sizes, while Rhode Island stands out for its high population density and low population size. Even Rhode Island, however, which is the most densely populated state in the country apart from New Jersey (not counting Puerto Rico or Washington D.C.), is about 17 percent less densely populated than is New Jersey. Massachusetts is the third most densely populated, followed by Connecticut (not shown above) and Maryland.

 

Exceptional New Jersey…now that’s something you don’t hear every day.

Image of the Day – Now that’s a basin!

black-sea-map

Assuming this map is accurate, the areas it highlights are those in which rivers flow into the Black Sea. A number of things about this may perhaps be geopolitically noteworthy:

– some countries, most notably Ukraine, lie almost completely within the Black Sea basin, whereas others, most notably Poland, lie just beyond the borders of the basin. Others still, like Bulgaria, are neatly bisected by it.

– a number of important cities, such as Istanbul, Lviv (the largest city in western Ukraine,  with the exception of Odessa), and the capital cities of Bulgaria (Sofia), Belarus (Minsk), and Bosnia-Herzegovina (Sarajevo), are situated precisely at the outer edge of the basin. Ankara, the capital of Turkey, is almost at the outer edge of the basin, meanwhile.

– the easternmost areas of Ukraine have rivers that flow into Russia’s Don River, and a coastline located along the Russian-controlled Sea of Azov rather than along the open Black Sea. Given that eastern Ukraine is relatively hilly (which this map does not show well) and is a leading producer of bulk goods like coal which are expensive to transport via truck, this Russian-oriented riverine and maritime access of eastern Ukraine is especially notable.

– The two most important rivers within this basin, namely the Danube and the Dnieper, empty into the Black Sea only about 200 km apart from one another, as a result of the fact that the Danube turns sharply north just before it reaches the sea, while the Dnieper turns southwest.

 

Image of the Day — Changing Electoral Demographics

From America’s Internal Environmental Geopolitics:

As you can see from the graph below, the US immigration boom has increased steadily in recent decades, and took off in a big way around 1990. So, immigration to the US is to a certain degree actually a fairly recent phenomenon (ignoring the pre-WW1 immigration boom, which is practically ancient history at this point). In fact, most second-generation immigrants from the heart of the most recent boom are still just turning 18 around now. And even among those who have already turned 18, voting participation tends to rise with age.

USA-Immigration-Annual1

We already discussed the flipping of California from swing state to Democrat state, which was, at least in part, the result of inward internal migration from other parts of the US as well as external immigration to the state from Asia and of course from Latin America. More recently, immigration from Mexico has flipped the state of New Mexico, which voted for the Republicans in every presidential election from 1968 until 1992, but has now voted Democrat in every presidential election since (with the exception of 2004, when it voted for a second Bush term). In the 2000 election, in fact, New Mexico was surrounded by a virtual sea of red states (see map below), but still voted for the Democrats; it was the counterimage of New Hampshire in that election, which voted Republican but was utterly surrounded by blue states.

2000 US election map

Immigration from Latin America (plus internal migration of young liberals to the city of Denver) may also have led Colorado – the population of which is now 20-25 percent Hispanic – to go from voting for the Republicans in every presidential election but one from 1968 until 2008, to voting for Obama in both of his elections. A similar thing is probably true of Nevada (now 25-30 percent Hispanic, and with a huge amount of internal US migration to Nevada’s Las Vegas metropolitan area in the past decade), which has actually voted for the winning US president in every single election since after 1976 (most of which have been Republicans), and could be about to vote Democrat for the third election in a row in 2016.

Many Democrats also think it may just be on the verge of happening in Arizona as well (now 30-35 percent Hispanic, and with lots of people from across the US moving to Phoenix), which voted Republican in every single presidential election but one since 1948. In 1964, in fact, Arizona was the only Republican-voting state in the country outside of the “South” – see map below. While Arizona did not vote for Obama in either of his elections, it may be that it would have voted for Obama in 2008 had his opponent not been Arizona’s own John McCain. Arizona and Nevada both produce almost no fossil fuels.

1964_Electoral_Map

Immigration may also help the Democrats win the eastern states of North Carolina and Virginia, the 9th and 12th most populous US states, respectively, neither of which produce much fossil fuels. The populations of North Carolina and Virginia are both now around 10 percent Hispanic (in other words, far less than some states, but far more than many other states). The population of Raleigh, North Carolina has also been swelled by a very large amount of internal migration from across the country during the last decade, as has the population of the metropolitan area of the city of Washington. D.C., which extends into Virginia. In fact, the cities of Charlotte, North Carolina and Raleigh, North Carolina have had the US’s two fastest-growing Hispanic populations since 2000, and Washington D.C. was not far behind them. North Carolina had not voted Democrat since 1976 and Virginia not since 1964, but both voted for Obama in 2008 and Virginia voted for Obama in 2012 as well.

Even more importantly, many Democrats think these same trends are now working to help them secure some of the country’s largest states, most notably Florida. Florida has historically tended to vote for the Republicans more often than the Democrats, but voted for Obama twice (and may technically have voted for Gore over Bush in the contested 2000 election which saw a Florida recount, even when the governor of Florida at the time was Bush’s own brother Jeb). Florida’s population is now around 25 percent Hispanic, and in particular has seen a large amount of growth in its non-Cuban Latin American population and among younger Cuban generations. This demographic shift is probably significant, given that the original Cuban generation that has been prominent in Florida’s politics in recent decades tended to be relatively conservative politically, reflecting the fact that in many cases it was made up of middle-class and upper-class Cubans who had to leave Cuba following the Communist Castro takeover there. Florida too produces very little fossil fuels.

Illinois, which in recent decades has been a swing state that has tended to vote for the Democrats, has perhaps seen its Democratic base strengthen as well because of demographic changes. It is now more than 15 percent Hispanic. New Jersey, the 11th most populous US state, is a Democrat state that used to vote often Republican prior to Bill Clinton (and which the Republicans probably hope to retake, which may be a part of the reason why they have been considering choosing the current Republican New Jersey governor Chris Christie as their candidate in 2016), and it now has a population that is approximately 19 percent Hispanic.

Ohio, Pennsylvania, and Michigan, the three largest conventional swing states in the US apart from Florida, have also had fast-growing Hispanic populations in the past decade or so, though their overall Hispanic populations remain only about 3.5 – 7.5 percent of their total populations. (Michigan also had fast-growing immigration from Iraq during the past decade). On the other hand, these states have also seen some outward internal US migration of young voters to other states.

Finally, even Georgia, a firmly Republican state which is the 8th most populous state in the country, could perhaps soon flip to the Democrats, the result of having a fast growing Hispanic population (the 10th fastest-growing of any state since 2000, which now accounts for more than 10 percent of the state’s total population), a large, long-established African-American population (roughly 20 percent of the state’s total population), and some young, potentially liberal families moving to Atlanta (which was one of the US’s fastest-growing metropolitan regions during the 2000s). Georgia also produces very little fossil fuels.

Image of the Day – December 3, 2015 – Morocco the Outlier

As a result of the conflicts in Syria and Libya, Morocco has become the only state in the Middle East/North African region that is not or does not border a failed or semi-failed state.

Morocco’s next-door neighbour Algeria, in contrast, borders two or three such states, namely Libya, Mali, and Niger. Algeria might also be standing on politically shaky ground itself, as its economy is highly dependent upon exports of oil and gas and as its leader Abdelaziz Bouteflika, who has governed the country since 1999 (during the Algerian Civil War from 1991-2002), has now reached 79 years old and has very serious health problems but no clear political successor.

Tunisia, meanwhile, in sandwiched narrowly between Libya, Algeria, and the depressed economy of southern Italy. Egypt borders Libya and Sudan and Gaza. Saudi Arabia borders Iraq and Yemen. Iran borders Iraq and Afghanistan. Turkey borders Iraq, Syria, and the economy of Greece. Sudan borders several troubled states and also remains troubled itself. Jordan borders Syria and Iraq. Lebanon borders Syria. Kuwait borders Iraq. Oman borders Yemen.

The West Bank Palestinian Territory, like Morocco, does not have failed-state neighbours: it is directly bordered only by Israel and Jordan. Still, Palestine cannot be said to be on this list with Morocco, since it is not independent and since it includes the more troubled Gaza Strip. Qatar, the United Arab Emirates, and Bahrain, meanwhile, are no longer truly majority-Arab economies, as non-Arab foreign workers now significantly outnumber their own citizen labour forces.

Morocco is an outlier also in terms of its economy (it is a net importer of fossil fuels, unlike most other Arab economies) and in its geographic location at the outer edge of Africa and Europe. Though Morocco has not been able to capitalize much on these traits in the past – the country’s per capita GDP is under $4000 –  there are reasons to think that it will begin to outshine most other nations in the coming years.

Here are 5 factors to keep an eye out for:

1.  Ties to the Americas

Morocco has closer connections to the Western Hemisphere than do most other countries in the Arab world, for a number of reasons. One is geography: Morocco is an Atlantic country, and most people in North and South America live within the Atlantic basin. Marrakesh is 5900 km from Manhattan, 6900 km from Miami, and 4900 km from the easternmost edge of Brazil. By comparison, Marrakesh is 5400 km from the Saudi capital Riyadh, 4900 from Baghdad, and 3700 km from Cairo.

Another is language: millions of Moroccans can speak French, Spanish, or  (increasingly) English, which along with Portuguese are the languages spoken most often in the Americas.

Another is history: Morocco was not a British colony, so it does not have the same resentment against the English-speaking world that many other countries do. Also, it was liberated by the US and Britain relatively early on in the Second World War (insert Casablanca reference here).

And another is politics: the US wants at least one stable, large, non-Wahabbist political ally in the Arab world, and as a result it is views Morocco favourably. In addition, the US and British navies continues to require passage through the narrow Strait of Gibraltar between Morocco and Spain in order to access the Mediterranean.

(Morocco and the US struck a Free Trade Agreement in 2006. Outside of Canada, Australia, South Korea, Israel, Jordan, Oman, and some countries in Latin America, Morocco is the only country to have such an agreement with the US)

As the economies of Europe, East Asia, and most of the developing world are simultaneously struggling at the moment, whereas the economy of the United States remains relatively vibrant, Morocco’s linkages to the US and other countries in the Americas could provide it with a significant advantage over its peers.

2. Oil and Food Imports 

Falling commodity prices in recent years have left most Middle Eastern countries panicking, depending as they do upon energy export to maintain their economies. Morocco too could be hurt by the falling price of energy, as it has benefited in the past from tourism, investment, and financial transfers coming from oil-rich states like Saudi Arabia. Still, Morocco is not a net commodity exporter itself. Quite the opposite, in fact: as a share of GDP Morocco is one of the world’s biggest net oil importers among countries with significant-sized populations, and it is also one of the bigger food importers.

Morocco does not even trade much with its energy-exporting neighbour Algeria, as the two have been rivals of one another because of Morocco’s ongoing control of Western Sahara. Morocco does trade, however, with Spain and with Portugal, both countries that could benefit significantly should cheap oil and gas prices persist.

(Source: The World Bank; Wall Street Journal)

3. Spain’s Economic Recovery

Spain and Portugal have been in a very deep economic recession since the “global financial crisis” hit. The southern regions of Spain, meanwhile, have been in a Depression in which as recently as 2015 they had formal unemployment rates of well over 30 percent, higher even than in Greece. This has not been good for Morocco at all, which sits just 14 km across the Straits of Gibraltar from southern Spain. The two Spanish “ex-claves” in Morocco, Cueta and Melilla (which have a combined population of 165,000), have similar unemployment rates.

Since the beginning of 2015, however, Spain is thought to have been the fastest growing significant economy in “Western Europe” apart from Sweden or Ireland, and Portugal has also been doing much better than in previous years.  Meanwhile the heart of the “Eurocrisis” seems to have moved to Italy, which could be very bad for neighbouring Tunisia and so make Morocco even more of an outlier in terms of being a stable economy within the Arab world.

(Source: Eurostat)

(Morocco exports slightly more to France than to Spain, however given that France’s GDP is more than twice as large as Spain’s, this indicates Morocco’s closer economic ties to Spain)

4. Modern Communications

Morocco is a semi-rural country. According to the World Bank, 40% of Morocco’s population live in rural areas, compared, for example, to 57% in Egypt, 33% in Tunisia, 30% in Algeria, 31% in Iraq, 27% in Iran and Turkey, and just 17% in Saudi Arabia. Morocco is also the most mountainous country in the Arab world outside of Yemen, making many of its inhabitants – in particular its rural inhabitants –  somewhat isolated from one another as well as from the outside world. Morocco’s population could benefit from Internet and mobile phone access helping it to overcome this isolation, then.

Morocco might also benefit from modern communications because of its unique linguistic abilities: its population speaks four different prominent languages, namely Arabic (which is spoken not only in Arab countries, but also by at least tens of thousands of people in almost every Muslim country), French, Spanish, and (increasingly) English. Morocco is in fact one of the few countries outside of Spain or the Western Hemisphere in which significant numbers of people are capable of speaking Spanish. Moreover, if Spain and Portugal benefit from being able to forge closer connections with Spanish and Portuguese speakers in the Americas as a result of the Internet, Morocco could benefit indirectly from their success.

The Internet could be particularly useful in helping Morocco to connect usefully with the rest of the Arab world, which until now Morocco has been somewhat cut off from as a result of its faraway location – it is a five hour flight from Morocco’s biggest city Casablanca to Cairo, and nearly an eight hour flight from Casablanca to Dubai – and as a result of its poor political relationship with its next-door neighbour Algeria. Given that most of the Arab world’s population and almost all of the Arab world’s economic activity occurs in the Middle East (including Egypt) rather than in North Africa (excluding Egypt), the distance-shrinking effects of the modern Internet could be of special assistance to Morocco.

 

 

 

 

 

 

 

 

 

(above: Population by country; below: The Moroccan diaspora)

 

 

 

 

 

 

 

5. Self-Driving Vehicles 

Morocco is located at the front door of Western Europe. It has to cross just one border to reach Spain, two borders to reach France, and three borders to reach Germany, Britain, or Italy. (By comparison, Turkey has to cross at least five borders to reach Germany or Italy by land, six to reach France, and seven to reach Britain or Spain). Still, Morocco cannot yet seamlessly access these countries.

It is, for example, 2350 km from Casablanca to Paris by land, a route which crosses the Strait of Gibraltar as well as a number of mountain ranges in Morocco, Spain, and southern France. This can make transport difficult, particularly by train. Trains cannot easily drive on and off of ships like trucks can, and they cannot handle steep inclines and sharp curves in mountainous areas as easily as trucks (particularly small trucks) can.

Indeed Morocco has only the 71st largest railway network in the world, according to the CIA World Factbook, smaller even than Tunisia’s. Spain has a much larger rail network, of course, just not once you account for Spain’s economic size. Moreover, few lines cross the Pyrenees Mountains on Spanish-French border, and Spain’s railways mostly use a different rail gauge as France’s, so the two systems to do not always link up quickly.

Smarter cars and trucks — and, eventually perhaps, self-driving cars and trucks — would be a boon for countries in the mountainous Mediterranean region, notably Morocco but also Algeria, Spain, Italy, southern France, Greece, Turkey, and the Balkans. They could make it safer and cheaper for cars and trucks to navigate difficult mountain roads. For Morocco, they could also make it easier to manage the long delay trucks typically face in crossing the Strait of Gibraltar, a body of water that is often too stormy to cross. If this happens, then the lack of national borders separating Morocco from large economies in Western Europe could become a significant economic advantage.

Over the longer-term, self-driving vehicles could also help Morocco to leverage its location as the sole land bridge between Western Europe and the huge region of Western Africa.

Economies in Western Africa often have a difficult time reaching European markets by sea. Either they are landlocked (approximately 70 million people live in landlocked countries in Western Africa, and many more are part of landlocked groups within non-landlocked countries, like the nearly 60 million Hausa or Fulani of Muslim-majority northern Nigeria), or they have to sail all the way around West Africa to reach Europe (most notably in countries like Nigeria — see map below — where most of the population of Western Africa lives), or they lack access to good natural harbours and ports (in the Nigerian megacity of Lagos, for example, “the [shipping] terminals are both practically in the city centre, so it can take an entire day for a lorry to get [through traffic] from the terminal to a warehouse“, according to the Economist), or their ships are subject to piracy.

(http://blog.crisisgroup.org/africa/nigeria/2015/12/04/nigerias-biafran-separatist-upsurge/)
The alternative to maritime shipping is to cross the Sahara Desert. That is, of course, far easier said than done: the routes across the Sahara are long, difficult, and dangerous. Still, they have a shot to become economical, given the challenges involved in the the sea route. Driverless trucks, which are both safer and cheaper than having a human driver risk crossing both the Sahara Desert and Morocco’s Atlas Mountains, could perhaps tilt the balance (in some cases, at least) between the land and sea routes. If this occured, it would reverse the process that began in the 1400s, when it first became easier to reach this region by ship than by caravan.

Finally, self-driving vehicles could perhaps make it easier for Morocco to access markets in Latin America. Most people in Latin America live in southern Brazil,  around Sao Paolo, and in neighbouring northern Argentina, around Buenos Aires. (The state of Sao Paolo alone accounts for an estimated 32% percent of Brazil’s GDP, without even taking into account neighbouring Rio de Janeiro). Yet this is a long sail from Morocco. It would instead be much quicker for ships to land somewhere around the eastern tip of Brazil and then drive overland to cities like Sao Paolo (see map below). Thus far it has been difficult to drive the more than 2000 km that this route is made up of, however, as it crosses long distances through Brazil’s eastern coastal mountains. Brazil’s traffic jams and road conditions are notoriously difficult to deal with; this route could certainly use a big boost from technology.

(Morocco controls Western Sahara)

Image of the Day – December 2, 2015 – Motor Vehicle Production

Motor Vehicle Production

The non-per capita vehicle production stats came from wikipedia: https://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production

Note: there are countries which have higher per capita motor vehicle production than some of the countries on this list. Belgium, for example, which is not shown on this list, has a much higher per capita motor vehicle production than many of the countries that are shown on this list. The countries on this list were simply the ones with the highest overall motor vehicle production as of 2013, according to the source above.

 

 

 

 

Image of the Day – December 1, 2015 – The Turkish-Bulgarian Border

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The land border between Bulgaria and Turkey currently serves as the southeastern frontier of the European Union, and it also Turkey’s most vulnerable one. Whereas Turkey’s eastern borders are separated from the majority of its population by over a thousand kilometres of hills and mountains, the distance between Istanbul and the Turkish-Bulgarian border is less than 200 kilometres, and the terrain is relatively flat the whole way.

Not incidentally, it was from the area that is today Bulgaria that the Romans conquered Byzantium (today’s Istanbul) in 173 BC, and that European forces conquered Constantinople (also today’s Istanbul) during the Fourth Crusade in 1204 AD. In fact the Turks themselves conquered Constantinople from this direction, in 1453 AD, though in their case they approached the city from both east and west simultaneously.

If Turkey were to formally or informally dominate even just the southern half of Bulgaria, as its Ottoman predecessors did for nearly five hundred years between 1396 and 1885, the distance between its western border and Istanbul would double. Even more important, Turkey would then be able to anchor itself on the Balkan Mountains instead of on the flat lowlands which currently comprise much of the border between the two countries.

This would give Turkey a defensible buffer in the north, while also allowing it to outflank any theoretical threat that might emerge on its border with Greece, its long-time rival, which like Bulgaria has a border located near to Istanbul. In addition, it would allow Turkey to prevent the Russians from circumventing the Turkish Straits by sending their goods to the Mediterranean by way of Bulgaria and Greece. Obviously the Turks would find such a state of affairs to be quite beneficial, all other things being held equal.

This is important, because Turkey could probably dominate Bulgaria if it wanted to, unless the Bulgarians were receiving support from an outside power like the United States, Russia, or the Europeans. Turkey is a much larger and wealthier country than Bulgaria is. Its gross domestic product is thought to be 20 times larger than Bulgaria’s, and its population is more than 10 times larger than Bulgaria’s. There is, in addition, a large Turkish diaspora living within Bulgaria, accounting for more than 10 percent of the country’s total population and more than half of the population in two of its 28 provinces.

You can read the full article here.