Posts Tagged ‘Environment’

The Dark Side of Economic Growth

March 7, 2010

The challenge of global warming has brought us face to face with a stark reality. Economic growth is exploitative of nature and unless we make some fundamental changes we could be headed for an environmental catastrophe from which there might be no recovery.

Thinking about this issue has revived a concern that is even more problematic: Is economic growth exploitative only of nature or is it exploitative in general? In this post we will examine the historical record to seek some answers to this question.

The relationship of economic growth to nature is fairly simple. Starting with the post-industrial era (which is not much more than a quarter of a millennium old at most) economic growth has relied upon the use of fossil fuels and the rate at which greenhouse gasses have been discharged into the atmosphere, we now find, is environmentally unsustainable. (more…)

Lahore – What is to be Done?

January 26, 2010

By Anjum Altaf

In two earlier posts I had made the point that there are evidence-based methods to resolve the conflict over the proposed construction of an expressway along the Lahore Canal to reduce traffic congestion. In this post I suggest two specific approaches to achieve this objective.

Before proceeding to the concrete suggestions one should note that the judiciary, having intervened in the controversy, has given both sides time to resolve the dispute through mutual discussions. I feel this approach would prove inconclusive because this is not the kind of market transaction that is conducive to negotiations that are aimed at striking a deal, e.g., an agreement to sacrifice a number of trees that lies somewhere in the middle of the range mentioned by the two sides. (more…)

Lahore – A Canal Runs Through It

January 20, 2010

By Anjum Altaf

This is an essay about Lahore but it could be about any city in South Asia because it deals with an issue that is common to them all – traffic congestion. How do we propose to deal with traffic congestion that is growing all the time, what do we hope to achieve, what is the price we are willing to pay, and how do we know what we are doing makes sense?

The controversy in Lahore centers round the fate of a branch of the Bambawala-Ravi-Bedian (BRB) Canal (a 37 mile long waterway built by the Mughals and upgraded by the British in 1861) that runs through the city and is more than a cultural heritage for the citizens. The Lahore Canal is a unique linear park that serves as one of the few public green belts and the only free swimming pool for the majority of the city residents as can be seen in this photo essay. (more…)

The World is Too Big to Fail But…

November 18, 2009

Who is Going to Bail it Out?

By Anjum Altaf

We have all read the stories about very big entities failing and being bailed out – these include cities like New York, countries like Mexico and Pakistan, and corporations like General Motors and Bank of America whose businesses were bigger than the economies of many countries. All of them defaulted on their debts – went bankrupt – and were bailed out by an entity that was bigger than them, the US Government alone or in concert with other developed countries.

The combination of size and of the existence of a savior, the protector of last resort, gives rise to a dilemma that is known as ‘moral hazard.’ When an entity believes its failure would damage the rest of the system and that there is someone who will not allow that to happen, then it loses the incentive to manage its risks prudently. (more…)


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