Death, Rape, and Minerals - The DR Congo

The Democratic Republic of the Congo has been the centre of African War since the 1960s, when Joseph Mobutu seized power. During this time, the nation, called Zaire, was very unstable, and Mobutu brought hope to citizens as he destroyed rebellions and made the country whole. However, the Rwandan Genocide in 1994 and Mobutu’s greed for power led to nation’s downfall into the deadliest conflict since World War II.

Between August 1998 and April 2007, 5.4 million people died in the DRC, while millions more fled to neighbouring countries. Starvation, disease, and warfare have contributed to these deaths. The Congo, sometimes referred to as the rape capital of the world, has been the centre of widespread and systematic use of rape to humiliate and demoralize targeted communities. In the midst of this is the problem of conflict minerals. These minerals include coltan, cassiterite, wolframite, and gold. These minerals are purchased by multinational electronics companies and used to make cell phones, laptops, and MP3 players. While these companies are not directly involved in the war in DR Congo, their purchases of minerals from these regions help finance the continual war and rape of citizens. Instead of purchasing these minerals from the DR Congo, companies can look towards Australia, a country which offers the same minerals. So long as multinational corporations keep purchasing from the DR Congo, the war will continue to take the lives of millions, as it already has, and will cause disturbance amongst neighbouring countries as more and more citizens flee. The hope for stability and freedom for Congolese citizens is in North America’s hands, and may offer a chance of redemption for weak involvement in Darfur and Rwanda.

The Illusive, "Never Again"

Darfur is a western region of Sudan, and the centre of one of today’s biggest African conflicts. Beginning in 2003, the conflict between the Sudan People’s Liberation Army (SPLA) and the Sudanese government has been an ongoing fight. The war in Darfur parallels the Rwandan Genocide on many levels, beginning with years of oppression and unequal treatment. In Rwanda, the Hutus were not favoured because of their lack of Caucasian features, and were subjected to inferior treatment by the Tutsis. After years of frustration, the Hutus revolted and killed roughly 800 000 Tutsis in a mere 100 days. This was led largely by the Hutu militia group, the Interahamwe, who were supported by the Hutu government at the time. Similarly, the people of Darfur, who are a mix of Arab and Black Africans but who all share the Muslim religion, were largely ignored by the British who colonized Sudan, and later by the central government. When Sudan achieved independence in 1956, it continued to be neglected. On April 25, 2003, the SPLA and the Justice and Equality Movement (JEM) entered al-Fashir and attacked the sleeping garrison. The Government of Sudan then sought revenge, and have been supplying the Janjaweed, a militia group, who have since been attacking Darfur and have killed hundreds of thousands of innocent civilians. The Janjaweed, infamous for massacre, rape, and torture, parallel the Interahamwe of Rwanda and the Nazi of Germany, who all have mercilessly targeted a specific group of people and brutally decimated them. During the Rwandan Genocide, the world watched as thousands of innocent civilians were targeted and killed. However, few countries stepped in to help and no country made a lasting difference. Before this, the Holocaust took the lives of six million. It was universally agreed afterwards that never again could an event like this occur, yet the Rwandan Genocide did occur after the Holocaust, and the war in Darfur is occurring presently. The United Nations and the African Union have done little to prevent the war in Darfur or to resolve the conflict. As a nation, the world has failed to uphold the promise that “never again” should events like the Holocaust or the Rwandan Genocide occur. The United Nations should have done more to have prevented the conflict in Darfur, especially since it showed similarities in patterns from previous wars. One can only hope that the phrase, “never again,” isn’t recycled too many times in the future.

Shake Hands With The Devil

Shake Hands with the Devil is a movie about the Rwandan Genocide, from the perspective of Canadian Lieutenant-General Romeo Dallaire. The Rwandan Genocide occurred in 1994 over the span of about 100 days, where 800000 people were brutally murdered. Prior to the Genocide, the hostility between the Hutus and the Tutsis was growing for many years. The Tutsis considered themselves superior to the Hutus due to their Caucasian features and preference by the Belgians, who colonized Rwanda. The divide between the Hutus and Tutsis furthered over the years, as the Tutsis held more of a monopoly over Rwanda. In August of 1993, the Arusha Accords agreement was signed, which planned for power-sharing between the Hutus and Tutsis in the government. However, many Hutu officials were opposed to the agreement. This is where I stop writing because class has ended. Goodbye :)

‘High-Grade’ Uranium Deposit at Saskatchewan Mine

Economics Blog #5 (Bonus)
By: Alisha Tupchong
‘High-Grade’ Uranium Deposit at Saskatchewan Mine

Summary of the Event

Denison Mines Corp., a Canadian public company that invests in and produces uranium, has confirmed that one of its drilling locations in Saskatchewan has the potential of “an economically significant, high-grade uranium deposit.” Uranium is a natural metal that is used extensively for providing energy to nuclear power plants because of its high energy potential and efficiency. One drilling area in Saskatchewan, called Zone A, has the potential to contain between 40 million and 80 million pounds of uranium, while another one, Zone B, may contain between 5 and 15 million pounds, as estimated by Denison Mines Corp. Within the last decade, uranium prices have continuously risen, and because uranium is in fact a very inelastic product, the increased prices have not affected the demand whatsoever. Canada is the largest uranium producer in the world, responsible for nearly 28 percent of the world’s production in 2005.

3 Positive Economic Statements

If Canada continues to have an absolute advantage in uranium production and the demand for uranium remains high, Canadian companies that mine for uranium will remain successful and Canada will have good trading relations with other countries that require uranium and supply goods to Canada that Canada would not otherwise be able to produce.

If the demand for uranium increases while its scarcity increases, Canadian uranium-mining companies will hire more workers to increase its production levels to satisfy the demand in the economy, resulting in a lower national unemployment rate and therefore lower a welfare-dependence rate, which in turn lowers government-spending costs.

If the demand for uranium increases, then Canada will have to export more uranium, which will increase the exchange rate, since exchange rates are determined by the demand for and supply of currencies on the foreign exchange market; with increased demand for uranium, countries will have to purchase more Canadian dollars, therefore increasing the exchange rate.

2 Normative Statements

Canada should invest in uranium production because uranium has the potential to positively affect the Canadian economy, since uranium will continue to be in high demand due to its importance in nuclear power plants.

Canadian uranium-mining companies should set up mines in other countries where uranium is also prevalent, so that the uranium is not coming from a singular source, Canada.

Opinion About What Should Happen

Canada should invest in uranium production because uranium is a natural resource that is abundant in Canada, whereas it is not as abundant in other countries. Eventually, Canada will be one of the only countries to produce uranium; therefore its scarcity will increase prices dramatically, allowing Canadian companies to profit greatly. It is particularly strategic to invest in uranium production because uranium is a highly inelastic product. In other words, an increase in price levels does not significantly alter the quantity demanded. Although there are four factors that affect elasticity (availability of substitutes, fraction of income spent on the item, amount of time available, and the nature of the item), it is singularly the nature of the item that is the reason why uranium is inelastic. Uranium is highly sought after because of its importance in nuclear power plants. Uranium is very effective and efficient, causing it to be environmentally-friendly because it provides lasting energy. With global warming and other environmental issues becoming increasingly pressing concerns, companies are turning to energy-efficient products for use in manufacturing, and uranium is one of them. Therefore, the demand for uranium will remain high, making it a wise choice to invest in. When Canada becomes one of the only countries containing uranium, demand will increase because of scarcity, causing Canadian companies to hire more workers. This will lower the national unemployment rate and increase GDP, both benefitting the Canadian economy.

Works Cited

"Denison drilling program confirms 'high-grade' deposit at Saskatchewan mine." The Canadian Press. Google News, 19 Jan. 2010. Web. 19 Jan. 2010. .
"Denison Mines: Fact Sheet." Denison Mines Corp. Web. 19 Jan. 2010. .

Gold and Copper Mines in B.C.

Economics Blog #4
By: Alisha Tupchong

Gold and Copper Mines in B.C.

Summary of the Event

Taseko Mines Ltd.’s $800-million copper-gold Prosperity project was environmentally approved of by the British Columbia provincial government during the week prior to January 15, 2010. The Prosperity project, which pumps out copper and gold from the earth, is scheduled for construction this summer as it joins Copper Mountain Mining Corp.’s similar $440-million project. The demand for mining industries has increased recently, as there is more money to be made now than before. Copper is a metal highly demanded by China because it used widely in manufacturing. Back in the 1990s, the price of copper was less than $1 (U.S.) per pound; now, copper is around $3.40 a pound. While environmental controversy and poor relations with first nations communities have slowed development in the past, companies like Taseko Mines Ltd., who now have environmental approval by the provincial government, will be able to carry out their mining activities as demanded. The price of gold is also looking strong, according to the Energy and Mining Minister, breaking $1100 (U.S. per ounce). Now, all there is left to wait for is the approval of the federal government in the next several months.

3 Positive Economic Statements

If Canadian mining companies retrieve more gold and copper from the ground compared to other countries, China will look to Canada to import metals used for manufacturing, causing aggregate demand to increase, which in turn, will cause prices to increase.

If Canadian mining companies have an absolute advantage in retrieving gold and copper, stronger trade relations can build between Canada and other countries, creating a situation where Canada would specialize in gold/copper production, while the other country would specialize in another demanded product, leading to increased productivity due to specialization.

If prices for gold and copper increase, Canadian mining companies will increase productivity by hiring more workers, therefore supplying more jobs to Canadian workers, which lowers the national unemployment rate, increases the GDP, and increases the standard of living since more households are receiving more income.

2 Normative Statements

The Federal government should approve of Taseko Mines Ltd.’s Prosperity project because the prices of gold and copper have been increasing recently, which can create a greater profit for the Canadian company, especially since Canada has a large supply of natural resources.

Canada should focus on specializing in the production of gold and copper because the demand for these metals is very high due to their various uses in the manufacturing industry.

Opinion About What Should Happen

Canada should focus on specializing in the production of gold and copper because they are considered valuable resources and are widely demanded. Currently, the prices of these metals have been increasing, and with specialization, they can increase even more if Canada becomes one of the only countries to produce so much gold and copper in later years. While other countries will eventually run out of these metals, Canada will still have a relatively abundant supply due to its location. If Canada specializes in producing gold and copper, it can increase trade relations with another country, like China, that produces goods that Canada cannot produce. This creates a win-win situation, and the two countries will increase their productivity as they focus on producing the good that gives them an absolute advantage. As well, if Canada becomes one of the only countries to produce gold and copper in the future, it can profit greatly because the scarcity and high demand will increase the prices, therefore benefitting the Canadian economy as exports increase.

Works Cited

Ebner, David. "New gold, copper mines to spark B.C. economy." Globe Investor. The Globe and Mail, 15 Jan. 2010. Web. 18 Jan. 2010. .

Toxic Children's Jewelry

Economics Blog #3
By: Alisha Tupchong

Toxic Children's Jewelry

Summary of the Event

Health Canada issued an advisory on January 15, 2010, warning consumers that some children’s jewelry products sold in Canada have been found to contain excessively high levels of lead. This warning occurred just two days after the U.S. Consumer Product Safety Commission issued an advisory about cadmium, another toxic metal, which was present in jewelry. Following this event, the Associate Press made an investigation that revealed that China-imported jewelry, made almost completely out of cadmium, was being sold at major North-American chains such as Wal-Mart and Claire’s. Cadmium, more toxic than lead, is a heavy metal that made up at least 10 percent of 12 metal components out of 103 pieces of low-priced children’s jewelry. Even at low levels, lead and cadmium can negatively affect children’s behavior and development.

3 Positive Economic Statements

If studies show that goods made in China are found to contain toxic or harmful materials, then consumers in Canada will be discouraged to purchase them; therefore the demand for Chinese products will decrease, causing a decrease in the supply and imports of Chinese goods to Canada.

If China builds a reputation for producing hazardous products, then countries will decrease the number of imports from them and will look for other countries to import from, which may include Canada, causing demand for Canadian products and manufacturing to increase.

If Canadian products and manufacturing are in high demand, prices will increase for the goods and services due to scarcity, which will cause demand to decrease again so that the prices don’t continually increase beyond the market equilibrium.

2 Normative Statements

Canada should reduce its dependence on China for goods and instead become more self-dependent so that health and safety regulations that are performed on the products are according to Canadian standards.

Canada should test imported products from countries where health and safety regulations have been an issue in the past before being sold at chain retailers and to prevent the recall/banning of substances, which lower the consumer’s confidence in purchasing imported goods.

Opinion About What Should Happen

Canada should reduce its dependence on China for its goods and instead become more self-dependent. When a country relies too heavily on another country, it is not good because if anything were to happen to the supplying country, the receiving country would be affected as well. In Canada’s case, Canada is too dependent on goods from China. With the jewelry incident, Health Canada is being criticized for not banning the products, and merely issuing an advisory. If Canadian companies had to produce the jewelry, it would have to be regulated and checked under Canadian standards, and would not contain cadmium or lead, preventing the outburst of the public. Therefore, Canada should not rely as heavily on products from a single country where regulations are different, in this case China, and instead look to its own manufacturers for production. This benefits the Canadian economy, because the goods purchased and distributed in Canada are produced in Canada, meaning there are no importing fees or foreign exchange fees. In addition, it provides more job opportunities for Canadians, therefore lowering the national unemployment rate.

Citations

"Health Canada issues advisory on metal kids' jewelry." CBC News. Canadian Broadcasting Corporation, 15 Jan. 2010. Web. 17 Jan. 2010. .

Oriented Split Straw Board

Economics Blog #2
By: Alisha Tupchong
November 16, 2009

Canadian technology could help China’s housing

Summary of the Event

The Alberta Research Council in Edmonton has developed a new technology that creates Oriented Split Straw Board (OSSB), a plywood substitute, by using the residue from cutting wheat straw and removing the grain. This Canadian technology was first discovered in the 1990s, however due to various setbacks which include lack of finance, it is not until now that the use of it has surfaced. The panels are created by compressing wheat straw and adding resin. Its primary use will be for building housing projects that will be not only earthquake-proof, but also very beneficial to the environment, since the wheat straw used will have been agricultural waste. In addition, the technology will reduce carbon emissions and preserve forests, therefore enabling growth and development in those areas. Panel Board Holding Ltd., a Netherlands-based company, is already using the technology at one of its new plants located in Shaanxi, China. Due to China’s need for 200 million new houses within the upcoming 20 years, the demand for this technology will increase dramatically in the near future, especially since China does not have enough trees for large-scale lumber production. OSSB has much potential and can certainly benefit the Canadian economy, largely because of its efficiency in using waste materials and its environmentally-friendly approach. In today’s economy, environmentally-friendly products are in much greater demand, and its demand will continue to grow as people become more aware of the negative long-term impacts of using products or technologies that harm the environment. The market for these products is ever-increasing and so the demand for OSSB will increase. The technology that creates OSSB will benefit the Canadian economy since it is very resourceful and reduces carbon emissions and the need to cut down trees, therefore being more efficient, inexpensive, and preserving of natural resources.

Three Positive Economic Statements

If the OSSB technology is in high demand in China, then Canada will have more relations with China, allowing it to be closer to one of the most powerful and largest producing countries in the world, and enabling the importing/exporting of goods at a lower cost, since there would be more trade between the two countries, benefitting the Canadian economy since less money would be expended for importing/exporting costs.

If the OSSB technology is in high demand in China, then Canadian companies can have more of their products produced in China because of the continual trade and exchange of goods between the two countries, resulting in lower costs of production for the Canadian companies, hence increased profits, and therefore benefitting the Canadian economy.

If a natural disaster occurs where the wheat supply decreases dramatically, then there will be less supply of OSSB and the price of it will rise, reducing the amount of OSSB purchased from Canada by China, causing a decrease in the amount of goods exported and profit made by the companies producing it, therefore negatively affecting the Canadian economy.

Two Normative Statements

To better the Canadian economy…

The Canadian company that creates Oriented Split Straw Board should set up and manage manufacturing plants around the world, so that the company can gain international recognition and therefore expand the market to which it caters to.

The company that creates OSSB should expand by allowing stocks to be purchased internationally from it so that more money from other countries is invested into the Canadian company, allowing it to grow and produce more unique products, in addition to increasing the number of trades between Canada and other countries.


Opinion about What Should Happen

To better the Canadian economy, the Alberta Research Council should expand its production of Oriented Split Straw Board by setting up numerous plants in different countries, especially those that are in need of buildings but lack the materials more commonly used in making them. For countries like these, there will be a large demand for OSSB since it is highly resourceful – its use of agricultural waste saves money and makes a profit out of something that would usually have been thrown out. China, especially, is looking for products like this to help rebuild the thousands of houses and buildings that were destroyed from the earthquake earlier on in 2009. Manufacturers are always looking for ways to make their products more efficient, and with technology such as this that uses waste to make such important things as houses, the demand for it will most certainly remain high. By opening up plants around the world, the company becomes internationally known; therefore, expanding its market and generating more profit as countries look to have the technology available for them. Houses are basic necessities and not luxury items, so the OSSB product should remain relatively inelastic, meaning that the companies producing them should not see a huge fluctuation, or change, in the market of how much is purchased when the price changes. Due to this relative inelasticity and the fact that houses are in shortage in many countries, people are more willing to purchase stocks from the company since there is profit to be made when countries look to use the technology. As more people invest in the company, it grows and is able to expand by opening up even more plants and/or coming out with new products. The Canadian economy will benefit from this expansion, since more trade and interactions will occur between Canada and other countries, which may result in cheaper importing/exporting costs and more international goods available in Canada. In short, the Canadian economy will be positively affected if the OSSB technology is available in other countries, since the market for it will be larger and more people will want to invest in it because of its growing demand.

Simms, Dave. "Canadian technology could help China’s housing." Canadian Broadcasting Corporation, 9 Nov. 2009. Web. 14 Nov. 2009. .