Water Security is National Security

Water resources and how they are managed impact almost all aspects of society and the economy, in particular health, food production and security, domestic water supply and sanitation, energy, industry, and the functioning of ecosystems. Under present climate variability, water stress is already high, particularly in many developing countries, and climate change adds even more urgency for action. Without improved water resources management, the progress towards poverty reduction targets, the Millennium Development Goals, and sustainable development in all its economic, social and environ- mental dimensions, will be jeopardized. UN Water.Org

Sunday, August 7, 2011

Managing Contraction, Redefining Progress

Only a crisis—actual or perceived—produces real change. When the crisis occurs, the actions that are taken depend upon the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to
existing policies, to keep them alive and available until the politically impossible becomes politically inevitable.
—Milton Friedman (economist)



Many analysts who focus on the problems of population growth, resource depletion, and climate change foresee gradually tightening constraints on world economic activity. In most cases the prognosis they offer is for worsening environmental problems, more expensive energy and materials, and slowing economic growth.

However, their analyses often fail to factor in the impacts to and from a financial system built on the expectation of further growth—a system that could come unhinged in a non-linear, catastrophic fashion as growth ends. Financial and monetary systems can crash suddenly and completely. This almost happened in September 2008 as the result of a combination of a decline in the housing market, reliance on overly complex and in many cases fraudulent financial instruments, and skyrocketing energy prices. Another sovereign debt crisis in Europe could bring the world to a similar precipice. Indeed, there is a line-up of actors waiting to take center stage in the years ahead, each capable of bringing the curtain down on the global banking system or one of the world’s major currencies. Each derives its destructive potency from its ability to strangle growth, thus setting off chain reactions of default, bankruptcy, and currency failure. More >>>

Location: Cayman Islands