Introducing: More Like This

Policy Innovations is pleased to announce the debut of "More Like This," a new article series by our friend John Haffner. John will be profiling clean energy leaders and other green innovators in China over the next several months.

As you can read in his introduction to the series, the motivation is triple: 1. Give these pioneers some of the recognition they deserve; 2. Convey the flavor of life in contemporary China; and 3. Inspire similar leadership in others.

The first article is a frank discussion with Kongjian Yu, an award-winning landscape architect whose designs strive to incorporate energy efficiency and natural beauty.

Yu feels that China's rapid urbanization suffers from what he calls the "'little feet' aesthetic"—showcase buildings built on shaky conceptual foundations. "These ornamental buildings can't carry their own weight. We have little feet but a jumbo body of consumption and GDP growth. Chinese have this dream of being urbanized. But the buildings aren't green."

Also of note on U.S.-China relations is our coverage of "Rare Earths Diplomacy" by Sean Daly. He looks at what we should expect in the rare minerals market and how it could impact production of the wind turbines and hybrid cars we associate with a clean technology economy.

Enjoy, and have a great Thanksgiving.

Cambodia's Future: Norway or Nigeria?

I am in Cambodia this week researching the expected offshore oil and gas boom. The big question is: Will one of Asia’s poorest and most corrupt countries use its newfound wealth to invest in infrastructure and education or will it simply shore up its corrupt practices? Will Cambodia become a Norway or a Nigeria?

Yesterday I met a foreign energy businessman with years of experience in Cambodia. His prognosis for Cambodia’s future was optimistic. He sees Cambodia as becoming a hub for a rapidly growing region, potentially taking advantage of its central location. In terms of governance, he has witnessed several years of improvement and sees things as only getting better.

China’s recent mining disaster is clearly on the minds of businesspeople here. Not only is China's mining sector the world's most dangerous, it is also extremely corrupt. The businessman said many people, including Cambodians, are reluctant to make deals with Chinese investors and partners. He listed several risks: opacity of contracts; hidden stipulations in contracts; lack of employment opportunities for local workers (Chinese use their own contractors); corrupt practices; and outdated equipment. Although Chinese technology will improve within a decade or so, he wasn’t so sure about the other practices.

Corruption is a rotten disease that many businesses are trying to fight. This businessman’s company is partnered with an American company, meaning it must follow the Foreign Corrupt Practices Act. He said it is a lot of work to comply with these rigorous standards, but he sees corrupt practices as antithetical to profitable business for several reasons: first, it is a waste of money that is thrown away without accountability; second, bribes seem to compound and send signals that a company is willing to play a dirty game; finally, good practices are central to ethical business and a calm soul. “I am able to sleep at night,” he said.

Due to his company’s large profile in Cambodia, an international NGO recently investigated how it was able to secure large contracts. After its investigation, the NGO concluded that his company was clean. He wasn’t worried. I only wished that clean companies like that were showcased for their exemplary behavior. If businesspeople knew they had a choice to act ethically, I bet cleaner practices would catch on.