02/07/2008
The Obama camp, is already promising close to $150 billion investment in clean energy technology. This is more than the McCain camp, many of whom seem less willing or motivated to reduce America's dependence on oil.
However what many don't see as forthcoming, is end of America's massive tax breaks offered to oil companies. To many Americans, this is simply unfair. How can trillion dollar oil companies, making record profits, get tax breaks, and yet health and education gets far less government assistance?
Despite the fact that the United States is one of the biggest consumers of oil, its leadership in the development of renewable sources of energy is absolutely essential. As the world's biggest economy, if and when the US develops such sources in an economically viable model, which can replace oil, then the world will follow suit and purchase the technology. This will dive down the price of renewable energy technology, as economies of scale kick in. For now, all that clean energy enthusiasts can hope for, is that Obama gets elected.
Whether this happens or not, one factor which is and will be affecting the economy of Beyond Oil and non Beyond Oil countries is the falling levels of investment in education. This can be felt almost everywhere. A prime example are the Persian Gulf countries. Fueled by a massive boom in oil income, many of them are struggling to find the suitable people needed to run their newly created companies and ventures.
The situation is much worse in developing Beyond Oil countries. In Libya, Muammar Ghaddafi's massive increases in infrastructure projects have left out the country's higher education system. Many talented Libyans who can afford to study abroad, do. Many of those who have to stay are unable to find suitable jobs due to sufficient lack of skills or that the job market is not ready for them.
It is very unlikely that there is going to be a major push at international level to get developing Beyond Oil countries to increase their investment in education. This makes their predicament even more worrisome as many are also failing to invest in their source of non oil energy.
This is a problem which the UN and many other NGOs can not solve on their own. Perhaps one effective way to remedy this situation,is to use market forces. Many countries take their credit rating very seriously. Should sovereign rating companies give more weight to investment in education and in renewable energy, with emphasis on the former especially, many governments could very well feel compelled to tackle this important issue. Otherwise, the situation will get from bad to worst.
End of Analysis
Meir Javedanfar, alongside Gordon Wollgam, is Project Manager and founder of the Beyond Oil project (http://beyondoil.net)
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