2020
July
22
Wednesday

Monitor Daily Podcast

July 22, 2020
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Mark Sappenfield
Senior global correspondent

What does wealth look like? For most of human history, it looked a lot like shiny things that humans pulled from the ground. Wealth was built on natural resources, and if you didn’t have them, you went to get them elsewhere. This was fuel for colonialism and exploitation.

But a recent analysis by The Economist finds something interesting. Looking forward, wealth looks less like things we take from the ground. In fact, it doesn’t “look” like anything at all because wealth is increasingly built by better thinking. “As natural wealth is used up, economies will rely more on human capital,” the article states.

In many ways, natural resources can have a regressive effect. They still generate wealth, but in many countries that leads to vast inequities, with a corrupt ruling class hoarding that wealth. In Congo, for instance, colonialism has gone but its economic spirit lingers.

On the other hand, human capital – the wealth generated by innovation, education, and opportunity – has no such effect. Singapore’s significant wealth, for example, is in its people. Its gross domestic product is under no threat from declining natural resources.

For the world, a shift is underway as economies learn that extraction is not the only – or even best – way to grow. The Economist notes: “Financial capital tends to accumulate. Natural capital seems destined to do the opposite.”


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Today’s stories

And why we wrote them

A deeper look

Government bans on evictions during the pandemic are expiring. That makes this moment a test of whether the U.S. can keep a health crisis from becoming a housing crisis.

Both U.S. presidential candidates talk tough on China. But their paths forward are different. So here we offer a look at how each might confront Beijing.

Caitlin Ochs/Reuters
Protesters in the United States, like this one who has milk poured on his eyes after being tear gassed during a protest in Portland, Oregon, July 19, 2020, are being offered tactical advice online by activists who have had similar clashes with brutal law enforcement in their countries.

Protesters who resist violent policing around the globe are now seeing a special kinship with American protesters, and they're going online to provide support and advice.

Melanie Stetson Freeman/Staff
Teri Carey and her son Patrick, 7, who is in second grade, work on spelling words in their dining room, on July 21, 2020 in Maynard, Massachusetts. Ms. Carey has decided to home-school Patrick instead of sending him back to school in the fall.

One effect of COVID-19: Families are experimenting with different forms of schooling, and rethinking how education is conducted. That shift in mindset may impact how schools – and society – educate moving forward.  


The Monitor's View

Reuters
Ethiopia's Grand Renaissance Dam on the river Nile last September.

Africa’s ability to resolve its internal disputes took a big step this week. Egypt and Sudan agreed to continue seeking an accord with Ethiopia over its new hydropower dam on the Blue Nile River – a vital water source for all three.

Merely agreeing to more talks might not seem like progress. Yet with Egypt making threats against its upstream neighbor, leaders of the 53-nation African Union stepped in as mediators and skillfully relieved the tension. Preventing conflicts on the continent has become the AU’s prime focus.

The dam is the largest hydropower project in Africa. Ethiopia began filling its reservoir in mid-July to capture runoff during the rainy season despite a breakdown of negotiations a week earlier. Within days Sudan and Egypt reported lower flow levels in the Nile, a potential problem for agricultural irrigation and other water needs.

Resolving the dispute could set a model for Africa in how to share its abundant natural resources. Both climate change and population growth are straining the environment. Africans need a shift in perspective away from a fear of scarcity and toward a wise and cooperative approach to land and water supplies.

“Cooperation is not a zero-sum game,” said Rosemary DiCarlo, United Nations under-secretary-general for political and peace-building affairs, after a round of talks among the three nations earlier this year. “It is the key to a successful collective effort to reduce poverty and increase growth, thus delivering on the development potential of the region.”

Ethiopia announced plans to build the Grand Ethiopian Renaissance Dam in 2011, just as pro-democracy protests gripped Egypt and as Sudan was breaking apart after decades of civil war. Since then, negotiators from all three countries managed in fits and starts to resolve most of their differences. The key unresolved issues include a legal framework for settling disputes, a water-sharing agreement during prolonged droughts, and the schedule for filling the dam, which could take up to seven years.

Ethiopia says that when it is finished and filled, the dam will produce enough electricity to accelerate economic growth within and across its borders. Sudan and Egypt, however, claim there are too many uncertainties. Any agreement would depend on stability in Ethiopia, where ethnic tensions run high. In addition, northeast Africa is subject to severe droughts, political fragmentation, and increasing competition from foreign rivals such as Turkey and Saudi Arabia.

One way to set aside those fears is to look at examples of resource-sharing in Africa and elsewhere. An informal pact among Somalia, Ethiopia, Kenya, and Uganda, for example, allows domestic animals to graze across borders. This has eased tensions and hardship in herding communities.

Despite the threats and the breakdowns in the dialogue over the dam, Egyptian Foreign Minister Sameh Shoukry nonetheless acknowledged “the undeniable truth of our commonality and camaraderie” earlier this year. He recognized the dam as an opportunity to “chart a new course of peace and prosperity for our peoples.”

That may have been an acknowledgment that Ethiopia’s dam, now mostly built and holding back water, is an undeniable reality. The courage on all sides to embrace cooperation, combined with more efficient use of their waters, could turn resource-sharing into a lasting framework for peace.


A Christian Science Perspective

About this feature

Each weekday, the Monitor includes one clearly labeled religious article offering spiritual insight on contemporary issues, including the news. The publication – in its various forms – is produced for anyone who cares about the progress of the human endeavor around the world and seeks news reported with compassion, intelligence, and an essentially constructive lens. For many, that caring has religious roots. For many, it does not. The Monitor has always embraced both audiences. The Monitor is owned by a church – The First Church of Christ, Scientist, in Boston – whose founder was concerned with both the state of the world and the quality of available news.

Struggling to find a house that would accommodate both her budget and her large family, a woman turned to God for inspiration and guidance. The idea that God is “forever near” – wherever we may be – turned the way she was thinking about the situation around, and a happy resolution ensued.


A message of love

Henry Romero/Reuters
Mexican architect Percibald Garcia reads aloud to children stuck at home during the pandemic in an apartment complex in the Tlatelolco neighborhood in Mexico City on July 21, 2020. He reads a different story to them every day.
( The illustrations in today’s Monitor Daily are by Jacob Turcotte and Karen Norris. )

A look ahead

Thanks for joining us today. Please come back tomorrow when our Russia correspondent, Fred Weir, looks at a heat wave in Siberia the likes of which hasn’t been seen in centuries, maybe longer. How is Russia responding?

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