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Weekly Wire: The Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.

How mobile phones can save, not waste, energy
World Economic Forum
The mobile industry is experiencing explosive growth worldwide, fuelled by almost 7 billion subscribers and an ever-growing demand for data traffic. However, the energy efficiency of mobile networks remains extremely low. Both base stations and smartphones regularly waste 70% of the energy consumed as heat. The underlying power architecture used in mobile communications still relies on outdated technology developed during the 1930s. The impact of relying on such outdated technology is huge.

U.N. Predicts New Global Population Boom
MIT Technology Review
A new analysis suggests that the world’s population will keep rising through 2100, and not flatten around 2050 as has been widely assumed. Such an increase would have huge implications, but the prediction’s reliability is debatable, given that it does not take into account future hardships a large population would likely face.  According to the new analysis by researchers at the United Nations and several academic institutions, there is an 80 percent chance that the world’s population, now 7.2 billion, won’t stop at nine billion in 2050, but will instead be between 9.6 billion and 12.3 billion by 2100.

Global investment patterns will see radical changes by 2030

Jamus Lim's picture

In an earlier post, we highlighted a feature of the global pattern of investment in recent times: that since 2000, developing countries have gradually increased their share of global investment, moving from around 20 percent through much of the second half of the last century, to around 46 percent by 2010. The rapidity of this rise notwithstanding, the natural question is whether this trend will continue into the future.

Answering this question---on changing patterns of global investment---is one of the main concerns of the most recent edition of the Global Development Horizons report, entitled Capital for the Future. In order to frame the question, the report considers how different countries will distinguish themselves in the global economy and, consequently, how by doing so they will provide investment opportunities that would attract financing from the pool of global saving.

In the long run, we all want to be alive, and thrive

Hans Timmer's picture

Ninety years ago, in his A Tract on Monetary Reform Keynes famously wrote “In the long run we are all dead”. That observation recently stirred a lot of debate for all the wrong reasons, after Niall Ferguson obnoxiously claimed that Keynes did not care about the future because he was childless. Whether Keynes cared about the long-term future or not (and whether he had children or not) is completely irrelevant in this context, as many (e.g. Brad DeLong and Paul Krugman) have pointed out.

The actual context in which Keynes wrote this observation was a discussion about the quantity theory of money, which states that doubling the supply of money will only double the prices, but will have no consequences for other parts of the economy. This is the classical dichotomy between real and nominal variables. Keynes argued: “Now in the long run this is probably true”. But “In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.”  So, Keynes’ point was obviously not that the future doesn’t matter. His point was that simple theories that might describe long-term relationships are just not good enough to deal with current issues. In the short run, changes in money supply can have all kinds of important consequences beyond the price levels. Economists will have to make their hands dirty and delve into the complicated dynamics of the here and now.