Canada’s aboriginals have their own emerging economy. What is an emerging market, you ask. Emerging markets are struggling countries with large resources, youthful demographics, massive infrastructure and housing unmet needs. Such countries are pushed in a transitional economy, expected to play a significant role in major political and economic affairs in the global markets. [Read more…] about Canada’s (Aboriginal) Emerging Economy?
I am speaking next week at the Aboriginal Law and Economic Development Forum in Halifax. My topic is “Pipelines, Mines, Windmills, Hydro Electric Projects: How can lenders and developers deal with title issues?”
This is a list of geopolitical and legal articles referenced in my conference papers summarizing why clear property rights are necessary to attracting capital markets:
1. Newsweek February 20th, 2009 Slumdogs vs. Millionaires; an interview with Hernando de Soto
2. Collateral Matters: Unlocking Dead Capital by World Bank March 2006
3. Newsweek February 21st, 2009 “Toxic Papers” by Hernando de Soto; Why it is not surprising toxic loans have unreliable legal documentation and poorly recorded instruments.
4. Video below: The Great Issues Forum on Economic Power featuring the influential speakers, Joseph Stiglitz, Naomi Klein and Hernando de Soto “>
Old News (July 2009) but significant: Canada’s First Nations Tax Commission has agreed to work with the influential Peruvian economist, Hernando de Soto to improve First Nations’ property rights regime.
How do you value utility easements and hydro transmission lines. We don’t have an exact answer but this is an excellent legal story written today by Fredericton’s Daily Gleaner journalist, Stephen Llewellyn on “Hydro-Quebec paying for transmission rights“.
Here are the latest updates:
1. New energy deal details via Moncton’s Times & Transcript today: New Brunswick will keep its transmission highways and Quebec will obtain the low emitting carbon emitting power facilities;
2. Irving Oil (through Fort Reliance) announces on same day (!!!!) $2 B investment in creating a regional electricity grid to the U.S. (courtesy of CBC News).
What would happen to a province if debt levels are too high? Don’t know but let’s look at California for insights:
1. California’s financial woes as of January 13th 2010: costs of borrowing goes up.
2. What happens when California defaults? Via NewGeography
World Economic Forum’s foreboding warnings of financial, sovereign debt crisis: Countries told must re-invent economies with new energy. via DigitalJournal
I am not so sure if Stiglitz had only Asia in mind but I doubt it. “(“)Quite often, countries with large amounts of natural resources suffer from exchange rate appreciation and the result is when they sell the natural resource, the value of currency goes up – they produce natural resources but no jobs. You can see this all over the world where you have rich countries and poor people. That’s why it’s so important to manage the natural resources from a macro-economic point of view,” he said.”
For those who don’t know, Stiglitz is a former chief economist at the World Bank. So maybe his contrarian views on globalization may stem from actual inside knowledge from his tenure at this Bretton Wood’s inspired institution.
Financing investments in natural resources and energy remains a very political end game. As Stiglitz wrote in a piece for Vanity Fair last July 2009, “America sent its Treasury secretaries (from both parties) around the planet to spread the word. In the eyes of many throughout the developing world, the revolving door, which allows American financial leaders to move seamlessly from Wall Street to Washington and back to Wall Street, gave them even more credibility; these men seemed to combine the power of money and the power of politics. ” Of course, Stiglitz is raging mad at this cosy relationship between the generals of global finance and the political brass which is likely going to cost America’s leadership position in the free market world and global influence.
But that is just the way the business of influence works. Don’t blame global finance, just look at the money trail behind the political party contributions. It all starts from there and it really is not a complicated path.