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G-7 nations reach agreement for a global minimum tax of 15% a floor for taxes that the Biden administration finds acceptable. This agreement was reached at a meeting of the Treasury chiefs of the 7 G-7 countries in London on June 5, 2021. The G-7 countries are Canada, France, Germany, Italy, Japan, UK, and US. Next agreement from Russia, China, India and Brazil in the G-20 nations would establish new ground rules for the major economies. The G-20 meeting is in Venice July 9-10. The OECD is steering the international efforts to achieve that goal. For the agreement to be effective a number of small nations that use tax rates of below 15% to attract business have to be part of the new rules. One of these countries is Ireland with a tax rate of 12.5%. For the Biden administration in the US the goal is a significant one as president Biden seeks business to pay its fair share so that long neglected priorities for education, healthcare, infrastructure, post pandemic improvements can be met. France and other nations in the EU face similar needs in the post pandemic environment. By setting a floor the Biden administration is both creating a new cultural concept of fairness in taxation and making it possible to finance the $2 trillion spending programs for these priorities of president Biden. Behind this are important facts that have left the large tech businesses paying little or no tax depriving governments of the very revenues that are needed for infrastructure and services for a modern well run state. The Biden administration seeks to include the tech businesses as well as all businesses in the new tax rules so that a uniform idea of fair taxation applies across the whole economy for the first time in two decades. In this way it makes up for the missed opportunities in the OBC administrations of Obama, Bush, Clinton that have led to loss of faith in the state and institutions in the US. A similar situation prevails in the UK,  France and Germany where previous administrations failed to address this important issue of fair taxation and financing infrastructure and priorities in health, education, and critical needs of the people.   ...

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NITI Aayog does much of the development planning for India. It's CEO Parmeswaran Iyer, says about one third of the population of 1.2 billion people has reached the middle class. The poverty level has dropped to about 16% of the population. He describes the steps taken to achieve this. First inflation control by keeping inflation below 6%- it was 5.7% in December 2022. The decline of loan rates for education, buying home and appliances to about 8%. Second the pioneering action of One Nation One Tax under GST that has saved Rs 18,000 lakh crore or Rs 12000 per household annual saving. To create small micro business in a country the size of India with a large informal economy action was taken. 120 million of 380 million beneficiaries are from the  middle class for PM Mudra Yojana who received Rs 7 trillion in collateral free loans. This is designed to provide non farm small loans of 10 lakh rupees (about $8000) to micro unit enterprises at the bottom of the development pyramid to encourage an entrepreneurial culture and micro enterprises. Non Performing assets (bad loans) or NPA were reduced from 11.1% of the banking system to 5.8% in 2022. This is critical to support future growth as banks that well capitalized can make the loans needed to support growth. In health and education  a large network of new universities and medical colleges, hospitals is being built. The Ayushman Yojana provides health screening to millions of people and aid is channeled to people for low cost generic medicines. It is the size of these efforts that is making the difference in the lives of ordinary people. For technological advancement the government has moved quickly on digitalization, and 5G implementation to be done by 2024. ...

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On the occasion of the start of the Indo-Pacific Framework economic alliance setting a path to a new supply chain for the US and European Union, this account of how Mohandas Gandhi was treated as one of their own by the workers of Europe serves as a reminder from the past. The only foundation that is sound in principle and deserves our support for the new supply chain that is to be forged for EU, US and India and the countries of Latin America, Asia and Africa, is one that will support American and European workers and families as well as workers and families of the partners in the Free World such as India and other countries.  The Davies family were Quakers and Socialists, who owned a textile mill in Darwen, Lancashire. In 1931 when Mohandas Gandhi visited England for a Round Table Conference to discuss self-rule he was invited by the Davies family to Darwen. The enthusiasm of the workers in Lancashire for Gandhi can be seen in this report in the BBC about that visit. Gandhi's sympathy for the workers and the common feeling of support can be seen from this account of the visit by Darwen's local historian Mr. Heys. Gustan Green was 10 years old in 1931 when she met Gandhi. She said "My father said I want you to see Gandhi, then in the future you can say that you witnessed that brave man. I stood by this door into the works that was my first sighting of Gandhi. He looked down at me, stroked my hair, grinned and walked away. He never said a single word." Gandhi's sympathies were with the workers. Gandhi said "They treated me as one of their own. I shall never forget that." ...

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This report in ProPublica on October 13, 2020, by Lydia DePillis was written near the end of Robert Lighhizer's term as US Trade Representative.  Bottom Line: It is human behaviour that no country, no kingdom or group will give up its money advantages secured when the opposition was weak or disorganized till the last fight is fought. The British were not giving up India, a source of financing the war against Napoleon in 1800's and then the Industrial Revolution in 1850's, the Dutch were not giving up the financial advantages of their Spices Empire in Batavia (Indonesia). History has shown this. Once gained under a state capitalism Japan was not going to give up its financial advantages gained by the 1980's when the US was weak or disorganized, till the last battle was fought.  Lighthizer who for the relentless Japanese was equally relentless till the goal of fair and level playing field for America was secured. This is true for China today on Liberation Day. This entire report by De Pillis in 2020 shows the Chinese would be relentless in 2020 like the Japanese in the 1980's, the Dutch in Indonesia  in the 18th and 19th century and the British in India in the 19th century and 20th century. China turned Mexico and Vietnam into supply routes into the US market. It continued its efforts to gain US technology in other ways. USTR older officials from the Bush Obama years of failed negotiations with China and endless hours putting together minute details of agreements including the TransPacific Agreement of Obama were not going to like the new approach of Lighthizer so stuck were they with the old approach of no clear goal and not getting an even playing field from China. ...

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Only 27 of 249 Republicans in the House of Representatives have accepted that Mr. Biden won the presidential election, the rest refused to answer. And only 32 of these Republicans in the House say they will accept if this is certified by the Electoral College. The Senate is split 50 Republicans to 48 Democrats with 2 runoff elections in Georgia. In one Senate seat a Libertarian candidate too a slice of the vote denying a clear victory to the Republican Perdue for that seat. In the other election for Senate seat with  about 20 candidates running no one could secure a clear win. Mr. Biden with a very thin margin of 13,000 votes in Georgia over Mr. Trump. Mr. Trump contested the election because of the unprecedented nature of the 2020 election with mail in votes allowed in a way and in huge numbers that was not always well organized to be fault proof. With federal elections being run by state officials in 51 states and not by a national election commission as in India, and each state improvising its way of handling mail in ballots there was not a fault proof way of knowing if everything was 100% unquestionably correctly done. A national federal election commission not belonging to any party and unrelated to state or federal authority can ensure an election is free and fair better than the way it is organized in the U.S. Use of electronic machines for over 1 billion voters also ensures consistent way of doing it in India compared to the haphazard nature of the American process of vote ballots and separate counting in each state. This is the second election in which both parties differed on the election and disputed the result. The earlier one was Bush vs. Gore when Mr. Clinton was outgoing president following 2 terms in office. Yet surprisingly there are no calls for setting up a structure like that in India that would organize the vote collection under the authority of a national election commission and the use of modern technology consistently across the nation. ...

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China imports most of Iran's oil exports about 1.8 million barrels a day which flow through the Straits of Hormuz. Iran is heavily dependent on these exports for oil revenues that support it's economy. All Asian economies are heavily dependent on the oil flowing from Saudis, UAE and Iran through the Straits.  For Iran it would mean the loss of oil revenues needed to support its economy if the Straits are shut down. Iran's central bank says it get $67 billion from oil exports 90% of it going to China alone.  82% of oil imports of Asian countries  from Saudi, UAE, Qatar and Iran sources go though the Straits.  The US is not dependent on the Straits- less than 10% of its oil. Also true of Germany. The US  would have to use air strikes to prevent any mining of the waters seaway, and China, US, Japan, India would join in combined effort to keep all sea navigation open for international shipping.  ...

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The US is on track to bring back 350,000 jobs in 2022 that were taken overseas during the two decades of hyper growth in China, according to the Reshoring Initiative. A false idea was created mostly by economists and business that shifted jobs to China during two Democratic and one Republican administration, the Clinton, Obama and the Bush administrations, that this would benefit the American workers and families through lower prices at the retail level. It ignored the severe damage this would do to jobs, incomes and whole communities when factories on which they depended for a living were shipped overseas. It damaged labor in ways that destroyed much of the American working class and the families built during the years of FDR, Truman, Eisenhower, Kennedy and Johnson. Business failed during this period to meet the challenge of higher American wages and productivity issues by using innovation and other steps to keep manufacturing at home.  This led to the hyper growth that did not benefit China, because a moderate pace of growth would have helped China control the rampant contamination of its air, water and soil. It also was leading China to a dead end reached during the 2016 election campaign with the election of president Trump with deep discontent from workers in midwestern states. The pandemic simply underscored the need for supply chains that were close to home and reliable in crises. By 2020 president  Biden was committing to a restructuring of the supply chains and pushing forward with it with legislation in the $369 billion Climate bill, and SCIENCE and Chips Act, to make solar panels, semiconductors and other products in the US. Reports from China showed that growth was slight or flat during 2022 and youth unemployment at 20%. The policy was to shift people back from the cities to the rural areas and support the informal economy, a sense of nationalist sentiment, and preparing for a future where the supply chain for the US and the European Union had moved away from China. In the long run the policies now look as ones that benefitted neither the US, the European Union, India or China.  ...

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DJT tariffs are selective and reciprocality makes them fair. This also cushions the impact on consumers and countries. Countries who have blatantly unfair tariffs for decades can then decide as in EU, China, India, Japan, S. Korea, Mexico and Canada, can decide how they will respond by looking at what they need to do for fair trade. Some tariffs are intended also as domestic policy for failure to control of fentanyl into the US as with CMC countries Canada, Mexico and China. US producers will make goods sourced from these countries at home and as DJT says about autos from Mexico this will lead to American producers in Detroit picking up production and bringing manufacturing back home to USA. Most goods Americans use were made in the US in the postwar period from 1950-1980, American manufacturing will get the boost it so badly needs after unfair trade practices from other countries in the EU, Japan, Taiwan and China. By April this policy will be in place, by June in 6 months the policies will be fully operational at entry ports in the US including Los Angeles and Long Beach. All tariffs are selective, carefully evaluated for individual countries and products and regions based on reciprocality a principle that is fair to all countries and the principle on which the world trading system is founded. Individual companies and industries that gain this or that benefit may present it differently saying is good or bad based on their interest and profits- for the US and American people the principle of reciprocality provides a yardstick that is both fair and in the long term interest of bringing jobs and higher wages to the US. ...

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Officials of 130 countries met virtually to agree on a global minimum tax rate. A minimum tax rate of 15% would be paid by corporations in each of the countries in which they operate so that tax avoidance is prevented. The Group of 20 major economies including India and China also agreed to this change in taxation to ensure that all companies pay their fair share of taxes. It is also part of the Biden plan for tax revenue generation to fund the infrastructure and human needs in health, education and public services that were neglected for so long. US president Biden says- "This will level the playing field and also make America more competitive. And it will allow us to devote the additional revenue we raise to make generational investments, which are necessary to keep America's competitive edge razor sharp in today's global economy." This tax change was needed to prevent companies shopping for low tax locations such as Ireland. This kind of locating in low tax rate locations worked badly for the major G-20 economies for decades as it prevented the generation of revenues needed for essential services and infrastructure investments. Tax changes include Biden's plan to increase the corporate tax rate to 28% from 21%, and raise the minimum tax on US based companies foreign profits to 21% from 10.5%.  ...

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Bangladesh is seen as doing better than India and Pakistan in life expectancy, hunger, fertility rates, and other key development indicators. The new Padma Bridge over the Ganges river operational in 2019 will link different parts of the country and is expected to add 1% to GDP growth. Other infrastructure projects are being planned with $30 billion in projects planned with China including a new port south of Chittagong. The Vision 2021 Plan plans to take Bangladesh out of the poorest nation group by 2021, the 50th anniversary of independence. Germany is the second largest donor and the gender equality in Bangladesh with coeducation in schools is seen by experts as unique among all Muslim countries. The growth of Dhaka and the social and economic change from 5 million garment workers, mostly women and rural could lead to social and cultural change that may be underestimated, says DW.com, providing the view from Germany. DW.com also warns that there are risks for Bangladesh in relying on remittances from Gulf countries, and in not diversifying so that it is not dependent on textile exports alone. Overall German view is that development aid works, and Bangladesh is welcomed from that perspective in Germany. ...

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While much of the focus is on the brief air war in the Punjab region in the media. In China, India and the US the real and major challenges are economic. As US tariffs is really about getting back its industrial base from the EU and China, China faces the challenge of adapting to this situation and loss of access to EU and US technologies for the next generation, and India with a smaller industrial base faces challenge of building a large enough industrial base for modernization with full access to US and EU technologies. This is then the study of change starting right here in Uttar Pradesh and in the city of Kanpur. New Metro in Kanpur, new power plants, and new manufacturing plants and infrastructure. PM Modi says- "There are two most essential conditions for the industrial progress of a state: first, self-reliance in the energy sector — that is, uninterrupted electricity supply; and second, infrastructure and connectivity. Today we have inaugurated several power plants: the 660 MW Panki Power Plant, 660 MW Neyveli Power Plant, 1320 MW Jawaharpur Power Plant, 660 MW Obra C Power Plant, and 660 MW Khurja Power Plant. This is a major step toward fulfilling Uttar Pradesh’s energy needs. With these power plants, electricity availability in UP will increase significantly, giving a boost to industries here. Today, development projects worth over $6.7 billion (Rs 47,000 crore) have also been inaugurated or had their foundation stones laid.” ...

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Western nations including Europe, Canada, Japan and South Korea, are members of the International Enerrgy Agency, which has 1.5 billion barrels in reserve. The IEA will release oil from its reserves to support president Biden's plan to release 180 million barrels over the next 6 months. OPEC that includes Russia plans to increase production by only about 432,000 barrels a day.  During the Trump administration Saudi Arabia and Russia were at odds on production levels leading to Russia increasing production to higher levels than OPEC would allow. This led to a temporary collapse of oil prices to levels as low as $30. To help the US oil fracking industry which could not operate at these low prices president Trump brought the two sides together into what is now OPEC+. The Biden administration has ties with both Iran and Saudis, and aims to revive the Iran nuclear deal, withdrew support for Saudi air strikes on Yemeni Iran backed Huthi rebels. In this geopolitical situation Saudis are reluctant to respond to US calls to increase production as they have done in the past. With climate change and the COP26 agenda in Glasgow there is a plan to shift away from fossil fuels such as coal and oil that are supplied by OPEC and Australia. This means that a shift away from Russian or Saudi oil is also a shift towards renewable energy such as wind and solar which is needed to combat climate change. The Ukraine war and efforts to wean Europe away from Russia sourced energy will accelerate the changes needed to tackle climate change, even though the US fracking industry will step in to increase production at oil prices at $100+ in 2022. After 2023-2024 the push for conservation and renewable energy from today's crisis and Glasgow COP26 commitments, sharp slowdown in China and renewable focused India is likely to bring down oil prices to reasonable levels for a transition period to renewable energy. ...

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Compare the presidential election spending in France and US one sees a huge, really huge difference. In France by law the first round it is limited to 16 million euros and second round to 22 million euros. Companies cannot donate and maximum donation is euros 4600 per year. All candidates must be given equal time by networks after official campaigns start usually March 28. If you get 5% of the presidential vote you get about 48% of the $22 million ceiling and if not only about 5%. Its a fairer system considering about $5 billion will be spent in US presidential election 2024. It keeps out lobbyists and donors looking for silent favors as the pharma industry and the tech industry in the US that has prevented any legislation on fair drug pricing or oversight of the monopolies of Apple, Google, Microsoft, Amazon, Meta and others, taxation of profits of tech and fossil fuel companies, or passage of healthcare for all. Indian elections cost of 1.35 lakh crores or $13 billion in 2024 are also similar to the US with parties spending leading to much corruption in the democratic process and defeating its best character.  ...

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Winnie Hu of NYT on the BQE Brooklyn Queens Expressway that for half mile has cantilevered 3 level structure that will fall apart by 2029. How to fix it concerns city planners in New York. Some planners want to put a park in its place and build a tunnel for the heaviest traffic. There is interest in being transformative and doing something big. The other actions already taken are  are to keep reinforcing it, cut traffic to 2 lanes, not to salt it in winter. Now planners say 2029 is when it will fall apart and time is running out for this as well as other infrastructure in New York such as Penn Station with Madison Square Garden built over it. And yet one finds no reflection on the sad state of New York and other city infrastructure in the US, when capital is being invested with plans to spend to the tune of 1.5 to 3 trillion dollars by 2030 on AI data centers and other sites. This will simply result in crowding out investment in infrastructure, so that the US will trade places with China and even India as a Third World country. And yet wealthy New Yorkers who use the nation's and the city's subways present an attitude of indifference to the decrepit condition of the Nation's and their own city's infrastructure. ...

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This NYT report on Mohamed Bin Zayed of the United Arab Emirates, who comes from Abu Dhabi one of the 7 emirates in the Gulf Coastal region, is rare and unusual. It provides stories the prince loves to tell that make a point about how he sees the world. Here he tells them to Robert F. Worth, in the only interview Mohamed bin Zayad has ever given to a journalist from US or Europe. It took a year just to get the interview. The title about a Dark Vision is inappropriate as Mohamed Zayad simply reflects what is a British way of looking at things- valuing the Constitution, keeping religion private even its deeply held beliefs and cultural traditions such as Bedouin's practice, and a general tolerance that characterizes British society and similar societies throughout the history of Europe and Asia that were sitting on shipping lanes and practiced trade for a livelihood. It is also important because the other Mohamed, Mohamed Bin Salman of Saudi Arabia is seen as someone influenced by the ideas of Mohamed Bin Zayad of Abu Dhabi. President Biden plans a trip to the region in coming months to continue on building a narrative of development for the region. This provide an insight into the coastal regions that include Gujarat across the Gulf in India, that for centuries traded with the Gulf kingdoms. They have a trading mentality and with it comes a tolerance that is also seen in trading nations such as England. This is what brought Britain to India (and China) says Mohandas Gandhi. Gandhi went so far as to say that if there was trade on the moon you would find a British shopkeeper was first to setup shop there. Zayed has as a minister in his cabinet, a woman who is minister of Tolerance, Sheikha Lubna al Quasimi.  Zayed is unique for three reasons. He has embedded in his views the spirit of tolerance. As Worth puts it in NYT, Zayed has grasped what is true to the spirit of the Gulf region. The country's location on an ancient shipping lane has bred a type of Islam in the Gulf region, that is open to the world and tolerant.  His father Zayed Nahyan's  tendencies to openness and frank demeanor combine with this tolerance to provide a different kind of leadership. His father had the pluralist instincts that combined traditional Bedouin attitudes with a rare liberal mindedness. He died at age 86 in 2004. Zayed bin Nahyan MBZ's father was selected for these very reasons by the British in 1966 to rule the small Gulf kingdom of Abu Dhabi. In 1966, says this NYT report, the country was mostly illiterate, half of all children died during childbirth and one third of the women during childbirth, there was a complete lack of western medicine. Zayed Nahyan's brother was averse to development making the British select Zayed Nahyan at the request of Abu Dhabhi families. These early years shaped Mohamed Bin Zayed's views of how to see the world. Zayed the son loves to tell stories, and this one in the NYT shows how Mohamed bin Zayed the son and Mohamed bin Nahyan the father share a sense of what it means to be human and support all people's aspirations for a better life. This is the narrative in India and the region of 1.8 billion people that extends from India to Indonesia and Vietnam. This was seen at the G7 when leaders of India and Indonesia were invited to meet with the G7 in Munich, Germany and taken as utterly serious participants in the discussions to shape the Free World. To see the difference- UAE has signed agreements to increase trade with India to $100 billion over 5 years and was thanked by prime minister Modi for treatment of 8 million Indian workers in the Gulf region during the pandemic. Saudis are now stabilizing the Turkish and Egyptian economies with aid and providing some of the funding assistance for Siemens to modernize the entire Egyptian rail system with the latest technology over the next 5 years. Projects of this size that have never been undertaken since 1945. Sometime in the 1980's when Zayed was a young military officer having completed training at the Royal British Military Academy at Sandhurst, England, and educated in Scotland, he went to the grasslands of Tanzania. During his visit to Tanzania he went to several villages to see the Masai tribes. When he returned he sat with his father crosslegged on the floor in traditional Bedouin and Asian style and told him about his travels. His father asked Zayed about all the details- the wildlife, the Masai people and their customs, the extent of poverty in the country. After hearing it all his father asked Zayed what he had done for the people he had encountered. In response Zayed shrugged and answered, the people he met were not Muslims. Zayed still recalls his father's reaction, sudden, forceful and indelible from memory. Zayad says his father took a sudden hold of his arm and spoke to him in a harsh tone and stern demeanor- " We are all God's children."     ...

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India's Northeast has been completely transformed in the 8 years since 2014 with PM Modi's infrastructure improvements. Tele density is up from a little over 40% to 65%, and massive road, rail and air infrastructure building have created a new Northeastern India. This can be seen in the way Northeasterners are looking at the future with a new optimism and integrating into India's experiment with development under democracy with enthusiasm never seen this way before.

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A hydropower dam in the Stiegler Gorge in Tanzania is being built at a cost of $4 billion. With an output of 2.1 gigawatts it will double Tanzania's electricity production. More electricity should result in less felling of trees to burn for charcoal to do cooking. According to UNDP only 10% in rural areas have electricity in Tanzania. At a practical level this means a child cannot have a light bulb at night to create the light in which to read. Darkness descends on villages in rural areas with bita and fragments of light - solar and lamps. German aid for the project was debated in parliament because of the work on the Rufiji river and disruption for the Selous Game Reserve used by tourists. The area for work to be done is 1000 square kilometres and the Game Reserve is covering 50,000 square kilometres so that efforts can be made to meet electricity goals and maintain the Reserve in its new form. President Magufuli is moving forward with the project with Tanzania's pressing needs for electricity. In recent years, Brazil, China and India have also placed these concerns as a priority in developing their hydropower resources. This also reduces the need to burn coal because of its effects on health.   ...

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Thomas Piketty is France's and Europe's best trained economist today with highly popular books, one on Capital, and one on Capital and Ideology. Piketty was trained at the London School of Economics, where Greens leader Annalena Baerbock of Germany was also a student, and today he is professor at LSE. His research has shown that for economic growth to happen after the pandemic European societies need to take the lead and build fairer societies where everyone has a decent living and a fair share of the pool of resources in each country. Piketty is respected by leaders that range from Biden and Scholz in US and Germany to president Xi in China. Biden's Families and Workers plan and Scholz's plan for dignity of workers and working class, and the Common Prosperity campaign of president Xi for greater investments in education, healthcare and housing are all inspired by Piketty and by the socially conscious background of these leaders. Prime minister Modi's plans for Jal Jeevan, cooking gas, to ease the burden on hundreds of millions of Indian women, for farmers with small land holdings in agriculture to improve output and use less chemicals, and for investments in infrastructure projects, housing, are also coming from similar concerns for growth and fairness. ...

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Turkey is reviving its relations with Saudi Arabia and the UAE. Prince Bin Salman will visit Turkey as part of a remake of Turkey Saudi relations. Turkey's economic crisis has revived the relationship as Turkey badly needs aid for its economy. The pressure on emerging markets is increasing with US central bank raising rates reducing inflows of western money into Turkey even further. Prince Salman has already received visits from French and British leaders. He visited Jordan and Egypt this week and will now be in Ankara. In the summer he will visit Greece and Cyprus. Saudis are modernizing their economy changing culture in relationships of men and women, in women's rights and education, and broadening relationships with the world under Salman. There is an astonishing openness to science and technology in a drive to be modern. The old Saudi monarchy and conservative rule with ancient traditions is giving way to what the Saudis in the group under Salman see as the modernization of Europe and America in the 20th century using science and technology as what they would like to see in their own country. There is also a drive to think independently from the dogmatic positions of the past that have turned the Kingdom into an American dependency with no obligation or incentive to modernize its culture and be open to the world outside.  The US fought a war to ostensibly modernize a backward mountainous remote state as Afghanistan, while being perfectly comfortable with the old Saudi monarchies of the past that made little change in the ancient culture and tradition and in women's rights and education. Such were the contradictions in American policy and the failure to think anew. As president Lincoln said "as our case is new we must think anew, and act anew." President Biden will now visit Saudi Arabia to build a new relationship with an independent nation, which along with the UAE is bringing change to the Middle East through infrastructure development and modernization. Salman's modernization comes as the kingdom also faced a need to make a transition out of dependence on fossil fuels. Salman sees trips to Greece and Turkey as opening up to all sides. Saudis have good relations with Israel and Egypt another part of this openness. The US senses this, India has sensed this. India's Modi government  made sending the Oxford vaccines manufactured in India to Saudis a priority during 2021. The Indian example is also changing the way the UAE and Saudis see infrastructure development and modernization in the region. This is also changing the way the region is looking at itself. For decades Egypt lacking the resources to build infrastructure on its own has languished economically. A helping hand from the Saudis is changing Egypt. The entire rail system is being modernized with the latest technology from Siemens. The Saudis have stabilized the Egyptian economy with a $5 billion deposit in the Central Bank of Egypt. On June 21 Egypt and Saudis signed $7.7 billion in investment deals for infrastructure, logistics, port administration, food, industry, medicine, energy and technology. In the investments in Egypt some of the oil money going to Saudis with $100 per barrel oil price is going to an economy in Egypt that can easily absorb and make good use of the investment to modernize.   The influence of Saudi leverage in fossil fuels which drove the US relationship with Saudis since FDR is being replaced with an independent Saudi kingdom making decisions to modernize across the board in all aspects compared to one that favored a few American companies such as Exxon Mobil and ARAMCO or arms makers such as Boeing and Lockheed that helped recycle American money going to pay for Saudi fossil fuels back to America.    ...

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BP's global oil outlook 2013-2030 shows demand from China is still a big part of the story two decades from now. Factor in demand from Russia, the Middle East and India, yet China still dominates the picture for growth in demand. For 2000-2011 China's share of global demand growth for energy was 55%, under BP's outlook China's share for 2011-2030 drops to 43%. Fossil fuels still dominate. The continuing dependence on fossil fuels is also the perspective of Shell CEO Voser in an interview with the WSJ in Jan 2013, who also sees strong growth in shale gas supplies from China. Coal will account for 61% of global demand growth to 2030, oil 43%, gas 25%, in BP's outlook. If Voser is right and with the need for cleaner burning natural gas gas considering high air pollution in Chinese cities, gas may take a bigger share than 25%. Shell CEO Voser looks out 4 decades from now and sees one third of global demand coming from renewable energy, 10% from nuclear, and the rest from fossil fuels.