GLOBAL OUTLOOK

Humanity’s Icy Insurance Policy

In the middle of the Arctic Ocean, on the Norweigan Island of Spitsbergen, the largest of the Svalbard Islands, sits a vault straight out of a sci-fi thriller: the Svalbard Seed Vault. This vault hosts  1.3 million seed samples from all around the world. It is a doomsday vault protected by a permanent ice layer- ready to save the world when things go sideways. 

• The vault opened in 2008 after governments were concerned about plant species going extinct at a high rate due to climate change (shocking right). 

• A few weeks ago, it got even more exciting! The vault received 30,000 new species from different countries, which is the largest singular deposit since when it opened in 2008. 

With climate change, conflicts, and supply chain chaos mucking up food security, the pressure is on to safeguard the sources. 

• While it is about conserving crops, it is also about culture. The project coordinator of the Norway-funded Biodiversity for Opportunities, Livelihoods, and Development in Bolivia said, “This deposit goes beyond preserving crops; it’s about protecting our culture.” 

• The addition last week had contributors from Bosnia and Herzegovina, Cameroon, Indonesia, Kazakhstan, Kenya, Madagascar, Nigeria and Zambia

So there sits our backup plan in the Arctic- packed with the world’s finest seeds for when disaster strikes. The vault is prepared to keep our favorite foods and various cultures alive. Here's to the Svalbard Seed Vault: the world’s iciest insurance policy!

Georgian Parliamentary Elections

There’s trouble a-brewin’ in Georgia, and not the Georgia of peaches and Jimmy Carter, the Georgia across the Ocean in the Caucasus where wine and Stalin came from. Last week Georgia parliamentary elections were held, also on the ballot pro-Russian and pro-European Union parties battled for control of the country. Georgia’s ruling party, Georgian dream, declared victory in the parliamentary elections receiving 54.08% of the vote, the opposition with 37.58% decried the results as falsified and cited irregularities such as ballot stuffing and voter intimidation. The ruling party Georgian dream is headed by Bidzina Ivanshvili, the richest man in Georgia described as an oligarch, his wealth alone comprising almost a quarter of Georgia’s GDP, the party rallies around cultural conservatism and euroscepticism. The vote has been called into question by the US and the EU, president Biden issued a statement calling the election results “deeply worrying”. The Georgian president and member of the pro-Western coalition, Salome Zurabihvili asked Georgians to go out and protest the election results last Monday, however in spite of these efforts a partial recount of the votes confirmed the victory for Georgian dream, putting the possibility of joining the European Union and NATO in unprecedented jeopardy.

When the World Floods

This past week across the world, there was a significant spike in natural disasters, mainly, typhoon Kong-rey in Taiwan and significant flooding in Spain. Both of these events represent the increasing pressure of the climate crisis on societies as they face continually increasing amounts of natural disasters. 

Beginning with typhoon Kong-rey, this storm made landfall in Taiwan on Thursday as the equivalent of a category three according to the Atlantic hurricane system. This represents the largest storm to hit Taiwan since 1998 and is notable due to its irregular lateness within the traditional typhoon season. So far, two people have died and over five hundred have been injured by the typhoon. While these numbers are already extremely damaging, experts believe that they will get worse as landslides and mountain villages characteristic to Taiwan are more accurately surveyed. This marks the third typhoon to hit Taiwan in one season since 2008.

Across the world in Spain, severe flash floods have submerged the city of Valencia and killed two hundred and five people so far. The people and government were caught completely unprepared and unready, receiving an alert only an hour before the flood took hold. The city recorded a year's worth of rain in merely eight hours. The most principal failure falls onto the Spanish government as they did not provide the immediate relief and material support needed to save people during the flood and shortly after. “This is a disaster. There are a lot of elderly people who don’t have medicine. There are children who don’t have food. We don’t have milk, we don’t have water. We have no access to anything,” a resident of Valencia, told state television station TVE.

Both of these represent the increasing costs of the climate crisis. As global warming continues, more and more disasters will occur and the only question that can be asked is where the next one will be.

MACRO

Dollars and Decisions: How Election Promises Could Shape the Economy

Election Day is tomorrow, November 5th.  60% of voters said the economy was a crucial factor for their vote according to a recent PBS poll. Let’s find out the candidate's plans. But first… 

How’s the U.S. economy doing now? 

• Inflation has been at its best rate since February of 2021, although prices haven’t reflected that as would be expected. Inflation is when the prices of goods increase over time. Triggering the question, “If inflation is lower, wouldn’t prices be lower too?” Yes, but the U.S. is undergoing disinflation, meaning the inflation rate is decreasing, so the prices of goods are rising at a slower rate. 

• Due to this, the Federal Reserve has cut rates by 50 basis points as of September 2024. This means people can get lower interest or mortgage rates, making buying a house or investing in capital cheaper.

• We saw a sharp increase of 254,000 jobs in September, with the unemployment rate at a steady 4.1%.

• The U.S. economy saw solid growth from July to September, with an annualized expansion rate of 2.8%.

What is each candidate's plan for their economy if they take office? 

Trump’s plan:

• Extending major parts of the Tax Cuts and Jobs Act (TCJA) of 2017

  • This would include corporate tax cuts, lowering the rate to 15% from the original 35%.

  • Also includes eliminating social security tax and:

• Increased tariffs (a tax on imported goods).

  • Tariffs could be passed onto consumers like a tax and lead to possible retaliation from foreign countries on which we impose tariffs, raising prices and, therefore, inflation. 

• Deporting undocumented workers.

  • Many jobs contributing to the employment increase, especially in industries like construction and mining, may be undocumented. If the policy is enforced, it could create shocks to the economy. 

• Trump’s plan projects a primary deficit of $5.8 trillion over the next 10 years on a conventional basis. This does not include additional debt burden on future generations who must finance almost the entirety of the tax decreases

Harris's plan:

• Increase taxes for people making more than $400,000/year.

• Lower cost of living by boosting home construction and cracking down on price gouging.

  • She plans to pay for this by increasing taxes on higher income brackets.

• Extending tax breaks for people making less than $400,000 in accordance with TCJA.

• Raising the top marginal rate on long-term capital gains.

• Harris’s plan projects one of $1.2 trillion. This does not include the negative impact of the additional debt burden on future generations who must finance most of the spending increases.

Safe to say, whoever is elected will have a measurable impact on the trajectory of the U.S. economy.

Game, Set, Impact: Celebrating the Economic Boost from the USA Table Tennis Nationals

Last Wednesday, Sports Destination Management (SDM), the leading publication with the largest circulation among sports events planners, announced that the USA Table Tennis Nationals event was selected as one of the 2024 Champions of Economic Impact in Sports Tourism. 

What are the USA Table Tennis Nationals?

Officially known as the USA Table Tennis National Championships, the USA Table Tennis Nationals is the premier annual table tennis tournament in the United States. The national governing body for table tennis in the U.S. promotes table tennis and provides a competitive platform for all players. USA Table Tennis Nationals championships are held at various U.S. venues, allowing local, regional, and national players to come together to compete.

What are their economic impacts on the U.S. economy?

When the USA Table Tennis National Championships hold events, they generate significant economic activity for the host city; they draw players, families, and fans who frequently stay in local hotels, dine at restaurants, and visit other attractions in the area, which contributes to the hospitality and tourism of the respective region. 

At the Von Braun Center in Huntsville, Alabama, the USA Table Tennis Nationals generated an economic impact of $1.9 million with 2,955 rooms booked and a near-capacity crowd of around 1,000 fans during their Nationals event.

The Sports Destination Management believes partnering with USA Table Tennis Nationals is an honor for their team.

“This is a tremendous honor for our entire sports tourism team here in Huntsville,” said Sports Development Manager Joel Lamp. 

Lamp mentions, “Thanks to the partnership with USA Table Tennis, we created a memorable experience that drove a significant economic impact at a needed time for our hospitality community.”

The selected winners for the award last Wednesday contributed over $1.88 billion to the national economy over the past year. An issue of the Sports Destination Management in November/December 2024 will feature these winners.

Asia-Pacific and Climate Change: Tricky situation. Trickier timeline  

In the fight against climate change, Asia-Pacific holds a unique position. It hosts the world’s most vulnerable economies while contributing 50% of all greenhouse gas emissions. APAC is a high-risk region, according to Deloitte, which estimates that “75% of the region’s GDP is at high risk of climate disruption”(Wall Street Journal). Current estimates suggest that rising sea levels and sweltering heat waves could erode and burn a “17% hole in the APAC’s GDP by 2070”(ADB). 

According to the Manila-based Asian Development Bank, “The window to stay within the 1.5℃ target of the Paris Agreement is rapidly closing”(Wall Street Journal). That’s 34.7 ℉. The Paris Agreement, signed in 2016, was an international treaty that aimed to limit the average rise in global temperatures to the aforementioned limit. The 8 years following the treaty have been marked by procrastination, making the goal difficult to achieve. 

To achieve a better tomorrow, Asia Pacific must find a way to effectively reduce its dependence on greenhouse gases without compromising its booming economic growth—the challenge in going green lies in a lack of investment in climate-friendly technologies. Asia must invest between $102 billion to $431 billion annually to fully adapt to climate change (ADB). To effectively reach this target, APAC governments must attract more private investment. This is achievable through the introduction of “policies that are consistent and encourage climate-oriented financial systems.”(ADB)

Those who have played the hit party game, JENGA, know that removing and replacing foundations is a measured process that requires the patience of a monk. Let’s hope Asia-Pacific can also achieve this process. 

TECH

Starlink’s Portable Power: Fast Wifi On the Go

A Game-Changer for Connectivity

On Wednesday, October 30th, SpaceX launched their new portable wifi: Starlink Mini, a battery-powered backpack that delivers satellite internet access on the go. This development promises to transform connectivity for outdoor enthusiasts and professionals alike, opening doors to a new era of remote access.

This portable solution holds significant potential for industries reliant on stable internet in challenging environments. Agriculture, for instance, stands to benefit greatly; farmers can monitor crops and make data-driven decisions in real time, optimizing resource use and increasing yields. Similarly, emergency services can harness reliable connectivity to access vital information during crises, enhancing coordination and response times.

The Rise of Remote Work

The economic implications don’t stop there. With dependable internet available in previously unreachable locations, companies can deploy remote teams more efficiently. This flexibility could lead to reduced overhead costs as businesses adopt more agile work models, ultimately boosting productivity and employee satisfaction. It’s a win-win for both employers and workers craving a better work-life balance.

Tourism Takes a Hit—But Not in a Bad Way

Starlink's backpack also opens up new possibilities for tourism and recreation. Previously overlooked destinations can now attract digital nomads and adventure seekers who want both nature and connectivity. This influx can provide a significant economic boost to local communities, creating new revenue streams for small businesses and generating jobs in hospitality and services.

Market Competition Heats Up

But what does this mean for traditional internet providers? As Starlink pushes the envelope, established ISPs may need to step up their game to remain competitive. This could lead to better pricing and improved services across the board—ultimately benefiting consumers.

Conclusion: A Catalyst for Change

In essence, Starlink’s portable internet solution is more than just a tech gimmick; it’s a potential catalyst for economic growth and transformation. As barriers to connectivity continue to fall, the landscape of work and play is poised for a significant shift, presenting both exciting opportunities and challenges for businesses and consumers alike.