` Gazprom and Rosneft have Licenses Now Russia Applies to UN to Affirm Borders ‘

#AceNewsServices – MOSCOW – May 14 – Russia will apply to the United Nations next year to affirm borders of its economic zone in the Arctic, Natural Resources and Environment Minister Sergei Donskoy said on Wednesday.

Arctic Shelf

Evidence will be presented to prove that 1.2 million square kilometres of water area, including the Mendeleev and Lomonosov ridges, were a continuation of Russia’s continental shelf, said Donskoy.

Research for the application, to be ready by November, has been under-way since 2006. This year, it will take place in the furthest northern Russian waters.


It will then take an examining commission several years to consider the application given the vast area involved.

Donskoy said he hoped Russia’s bid would be considered “professionally and without political bias”, as in the successful application for 52,000 square kilometres in the far eastern Sea of Okhotsk, approved last year.

Gazprom and Rosneft are officially the only companies with the right to explore the Russian Artic shelf, as they both received exclusive extraction licenses in return for large cash payments.

In 2009, Rosneft agreed to pay 1.4 billion roubles ($450 million) and Gazprom 1.2 billion in a resolution passed by the state Duma, but the exact amount paid in June 2013 for the licenses is unknown.

Russia has passed a law that only companies in which the state owns more than half and have at least 5 years of Arctic experience are eligible for permits



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#russia, #arctic, #continental-shelf, #gazprom, #natural-resource, #okhotsk-sea, #rosneft, #united-nations

The Rise and Rise of Asia

76:365 - CD Blacks

76:365 – CD Blacks (Photo credit: Nomadic Lass)

English: The Four Asian Tigers

English: The Four Asian Tigers (Photo credit: Wikipedia)

Dani Rodrik has a provocative piece for Project Syndicate arguing that the quest for growth has gotten more elusive over the past few years. During the second half of the 20th Century, he says, if poor countries wanted to grow up to be rich (and didn’t have the patrimony of natural resource wealth), they would have to first “move their labor from the countryside (or informal activities) to organized manufacturing”. Manufacturing industries are relatively easy to replicate; they create rapid growth in productivity and incomes “regardless of the quality of domestic policies, institutions, or geography“. 

That world is gone now. Achieving an Asian Tigerstyle growth miracle is trickier for a couple of reasons:Technological advances have rendered manufacturing much more skill and capital-intensive than it was in the past, even at the low-quality end of the spectrum … It will be impossible for the next generation of industrializing countries to move 25% or more of their workforce into manufacturing, as East Asian economies did.

Second, globalization in general, and the rise of China in particular, has greatly increased competition on world markets, making it difficult for newcomers to make space for themselves. Although Chinese labor is becoming more expensive, China remains a formidable competitor for any country contemplating entry into manufactures.

Ryan Avent points us to a recent column in the Economist that reaches the opposite conclusion: “[m]odern supply chains are making it easier for economies to industrialize”. In a blog post, he finds Rodrik’s concerns wanting:

For the moment, Mr Rodrik’s concerns seem somewhat unfounded. Chinese manufacturing is very capital-intensive, and yet employment in industry there has been remarkably consistent over the past two decades. Admittedly, this is partly due to declining employment in old state enterprises offsetting rising employment in new, export-oriented firms. But across the rich and emerging world, falling labour intensity in manufacturing does not seem to limit the contribution of industry to prosperity.

Rodrik and Avent disagree over the extent to which manufacturing can spark catchup growth, but both seem to take it as a given that it’s still the best path to follow for countries that want to get rich. It’s at least a much more empirical view than Deirdre McCloskey’s thesis that countries get rich once their citizens “stopped sneering at market innovativeness and other bourgeois virtues”. – Peter Rudegeair

#china, #dani-rodrik, #economy-of-asia, #four-asian-tigers, #manufacturing, #natural-resource, #project-syndicate, #rodrik