Author: globestrategy

Argentina : Trade Patterns and Challenges Ahead

Argentinean export growth was impressive during the recent economic boom (2003-2007). However, decomposing export growth reveals that the extensive margin (increases in exports of existing products to existing markets) dominates, while the intensive margin (increases in exports of new products or new markets) contributes little to export growth. Argentina’s trade product concentration has increased in the past 10 years, and the main export products remain overwhelmingly natural-resource intensive. The little diversification of non-primary exports limits the country s ability to weather a decline in export commodity prices. The country has had some success finding new export markets, especially in Latin America, but should seek to develop deeper trade relationships with high GDP export destinations such as the European Union and the United States. Another challenge going forward is the relatively low sophistication of exports and limited integration into the global production chains, falling behind regional competitors such as Brazil. This calls for policy measures to improve the ability of existing firms to innovate and compete successfully in global markets⊕.
Citation
“Anos-Casero, Paloma; Rollo, Valentina. 2010. Argentina : Trade Patterns and Challenges Ahead. Policy Research working paper ; no. WPS 5221. World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/3708 License: Creative Commons Attribution CC BY 3.0.”

Do mature industries have their own innovation dynamics?

This study investigates the creation of the thermoplastic vulcanizates industry as an example of innovation constructed within a mature industry, in this case, the petrochemicals industry. A characterization is made of this innovation process, identifying the technological and organizational dimensions that are inherent to it as well as the nature of the competencies and resources mobilized by the companies involved in the innovation.⊕
(2006). Do mature industries have their own innovation dynamics?: A reflection based on the development of the thermoplastic vulcanizates industry. Polímeros, 16(2), 12-19. https://dx.doi.org/10.1590/S0104-14282006000200005

Still on the aircrafts

Still on the A380 fiasco, has anyone thought of linking up 3 news articles that came out on the subject. The first is that of Singapore and Lufthansa replacing their trent 900 engines. the second is Pratt & Witney suing RR for copying a Fan blade design and the third is Boeing halting the testing of the dreamliner. Put all of these together in a sequence and try to correlate this with the BP fiasco. What do you get? Do you see a rival to protect its share at the expense of others in a niche market? RR provides over 50% of aircraft engines and many of these have been tested and proven reliable? When  1 model experiences issues, you get a lot of negative media coverage while you try and sort out what when wrong. But then your only rival walks in the party and says you cheated on design and your net value declines by almost 10%. Methinks, RR will wait out all of this.The company is still innovative, reliable and has capabilty. At least the Chinese think so!. Long live British Engineering

When flying machines refuse to fly

This week has seen a flurry of articles on the engine travails of the A380 with issues on the Rolls Royce variant of the powerful engines that propels the biggest passenger aircraft. The latest news today is of another competing aircraft – the Boeing 787 Dreamliner’s testing being stopped due to an emergency landing on tuesday following smoke in the cockpit. Both these aircrafts have been powered by Rolls Royce engines.(Sic)The similarities with both aircrafts have been the leap in innovation and design that airframe manufcaturers wanted to see in a field that had stagnated after the development of the 747 in 1970s. So we had the Airbus A380 with its large passenger capacity and long range design and the dreamliner with its emphasis on innovation& effieciency.In the background of recent safety issues, can we as mere mortals boarding these aircrafts ask if aircraft design has reached a technological barrier? Is there a limit on how much power and thrust can be developed for large passenger planes? I know that engineers could argue that these are teething problems with a new aircraft and that there is no limit. But then why is that after the 747 in 1970, the next major development was only the Airbus A340 and the Antonovs? Why do we have problems when a radical development is designed in airframes. Will these issues be resolved?As for me, the next time , I book a flight, I will be looking out of the window for smoke.

Why ‘revolution’ is the new buzz word in the MENA region.

Last week was so tumultuous that some of us rediscovered TV. The Middle East & North African region has come to life and is now the new Mecca for news producers. Revolution, people/mob power, state sponsored killing sprees, toppling of established power structures and the re-affirmation of the right to protest against the ignominies faced by the common people was staple fare.
What is needed now is a perhaps an analysis into the forces that prompted this?
Some commentators have linked this to the domino effect of Tunisia & Egypt where people tasted success. History has provided many examples of this effect. The crumbling of the Berlin wall followed by a series of government failures in the Soviet Bloc is a related event, You can also argue that 1997 Asian Flu that brought chaos and a recession across many states was a harbinger of the more closely linked one in 2008 that brought many of the G7 states to their knees.
What are then the common linkages in the MENA states that are facing turmoil? My first bet would be on the forces of Globalisation as seen through the lenses of a news hungry media empire. The Twitter/face book inspired street protests were brought to life by tantalizing newsfeeds from embedded reporters and a generous support of Arab nationalism.
The second is Economic: Declining state revenues in states like Bahrain, Egypt, Yemen and Oman combined with anger against a growing income disparity in states like Libya, Kuwait & Saudi Arabia. To this when you add a growing young unemployed population with no hopes of earning a decent living, you set the scene for revolution.
The third linkage is the most quoted one, a lack of democracy and the promulgation of ruling dynasties. Imagine your reaction as an unemployed Libyan to the news that the Gaddafi family & cronies control almost everything from lucrative business empires down to the way you think and live your life. The situation is similar to Saudi Arabia and Bahrain, where thousands of ‘Princes’ have state salaries, freebies and immunity from almost everything while over 40% of the populace live in poverty.
The fourth linkage is geopolitical: a reflection of a transforming Multi Polar world where the Americas of the world must yield to the IRANs and CHINAs of an emerging world. Iran has set this in motion with trying to send two frigates into the Suez across to Syria, leading to a rethinking of our understanding of the military balance in the region. Most of this has been attributed to an isolation of Iran and the Cooperation between Egypt, US and Israel. With regime change in Egypt, there is a fear that this ménage a trios would have to accommodate Iran.
When all of this madness ends, what most commentators argue is that regardless of whether there is regime change or if a transition to democracy happens, the MENA region would have changed so drastically that many of the ‘Power Actors’ would have to rethink their own privileged existence and spend more on the welfare of their states. When that happens, Globalisation would have earned itself pat on the back for changing lives in region long ignored by the rest of the world.

In the name of a just God

Having read Damian ‘s Thompson’s piece in today’s Telegraph , on the destruction of Islam’s heritage in its holiest place, I begin to wonder if there is a politico-demonic agenda behind state driven attempts at destroying the purity within religions. How else can you condone the modernization of Mecca by trampling on its link to antiquity, which has for centuries ensured a steady stream of devotees? How else can you justify as the Taliban blasted 3rd Century Bamiyan Buddha statues to oblivion? or in the recent past, the destruction of 15th century Muslim shrines in Timbuktu, northern Mali by hardliners.

Even within stable democratic systems, this logic still prevails,-the destruction of the Babri Mosque in India with the world’s 3rd largest security apparatus watched in mute spectacle as 2000 lives were lost in the name of God, is yet another case. Another case was the bombardment of Sikhism’s  holiest Golden Temple complex in Amritsar, in 1984 .
Moving down into history, the story of Jerusalem, holy to three major religions and yet claiming its share of daily human lives while politicians dither, stands out as another case of deliberate unresolved political stalemate

Within the emerged world, the secularization agenda of governments in the UK has brought its share of trampling on the sanctity of religions whilst creating more fundamentalists in the process.

Can we leave this behind and return to being normal children of a just creator? Can we return to the simplicity of practicing our beliefs within personal spaces and respecting everybody else as we practice them?  In the process, can we also strip statues/relics/tourist sites of its religious overtones and admire them for being works of Art that they are. In doing this, we respect the effort that would gone into creating them as well honour the creativity of religions in helping preserve culture for generations. And we also deny fundamentalists of the support, they crave to promote deviant behaviour as the destruction of cultural artifacts.

Are we as Karl marx would have put it ,moving into an era where” Religion is an opium to hold the vast masses in the state’s thrall”? Or is there something more sinister in the air?

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