Spanish Geo-Economics: Past, Present, and Future

Link: spanish-geo-economics-past-present-and-future-january-2017

(If some the pictures on the link above are too blurry, you can see them clearly on the link below….however some of the text paragraphs in the link below are out of place. Sorry for the inconvenience).



Africa, Europe, Middle East

The Day After Tomorrow, in Morocco


Amid the election victory of the intensely pro-coal, global warming denier Donald Trump, the UN’s annual Climate Change Conference is underway in Marrakech, Morocco, and is aiming to build on last year’s Paris Agreement. The conference began on November 7 and will run until the 18th.

Trump aside, getting any far-reaching climate deal done will be a herculean challenge involving unprecedented cooperation and goodwill between nations. Specifically, it will require cooperation between developed economies, which account for most greenhouse gas emissions in per capita as well as historical terms, and developing ones, which have the most urgent need for an increase in carbon emissions and carbohydrates consumption. Morocco, which is a developing, African, Muslim economy that shares the pillars of Hercules with its developed, European, Christian neighbour Spain, could therefore be among the most fitting places to accomplish such an effort.

Morocco exemplifies many of the greatest challenges as well as greatest opportunities of a world in which the use of fossil fuels is relegated to the back-burner. Using Morocco as a case study, one can explore in detail what the Day After Tomorrow could look like. Not the apocalyptic version of climate change that Hollywood has repeatedly shown us, but rather a more hopeful Day After Tomorrow: the lower-pollution world those at the conference in Marrakech are hoping to build.

On the challenge side of the ledger, Morocco is one of the poorer countries of the Arab world, and, while not an energy exporter itself, it does rely on business with and investment from the oil-rich Gulf. Moreover it is one of the largest food importers in the world (relative to GDP size), and is part of both the Arab and Saharan worlds which are similarly beholden to food imports. Given the energy-food-water nexus, which has many aspects, there is a far-reaching link between food and fuel prices. In any climate deal, countries like Morocco and regions like the Middle East must be supported in one way or another if they are to avoid economic crises due to food-price inflation and declining energy export revenues.

There is also a geopolitical and humanitarian component to this. Conflicts can be started in response to food prices: the current Syrian war may have been sparked or at least exacerbated by drought. Morocco has its own dormant food-related conflict with its gas-rich neighbour Algeria over Western Sahara, the large Moroccan-controlled former Spanish colony which holds perhaps three-quarters of global reserves of phosphate fertilizer.

In terms of opportunities in a lower-emissions world, Morocco has three factors working in its favour. First, its location at the exact crossroads of the Atlantic and Mediterranean puts it in a strong position to engage in fuel-efficient maritime trade with large markets like Europe, the Americas, and South Asia. Second, Morocco has renewable energy to harness: the Saharan sun, seaside wind (Morocco’s coast is over 1800 km long), and direct electricity-grid linkages via Spain to the hefty renewables output of Europe. Indeed, Morocco built the largest solar plant in the world this year, while Spain is the world’s fourth largest producer of wind power and tenth largest of ‘renewables’ in general. Beyond Spain, Morroco’s largest trading partner France is by far the least dependent on fossil fuels of any of the world’s biggest economies. Finally, Morocco is one of the few countries to speak three global languages pretty well: Arabic, French, and Spanish. As such it is well-placed to engage in emissions-free trading of services and media on the Internet. Morroco’s even getting decent at English now, because of tourists from the UK, US, and EU.

Morocco has, indeed, always been something of an outlier. Today, it is arguably the only country in the Middle East or North Africa that is not or does not border a failed or semi-failed state. In recent years Morocco has been one of the few places in the region where good news has not been too difficult to come by. And with Trump’s victory last night, and the end of the climate conference approaching next week, we could all use some more good news out of Morocco right now.

Africa, Europe, Middle East

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 (since the Algerian Civil War, which lasted 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 significant 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.

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.

A similar thing would be useful for Morocco if for self-flying (or at least, “smarter”) aircraft were become common.

Africa, Europe, Images, North America, South America

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

East Asia, Europe, Images, North America

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

Motor Vehicle Production

The non-per capita vehicle production stats came from wikipedia:

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.