the economist

26 posts under this tag.

Alien life 2
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Apr
25

Some weeks ago water vapor was found on HD209458bWP, an extrasolar planet some 150 light years away. Just yesterday Gliese 581 cWP, E was discovered. With a radius only 50% bigger than that of Earth and within the “habitable zone”WP—”the region surrounding a star where water would be liquid”—of its star, it is the best candidate so far for extraterrestrial life.

The perennial wild card of the discovery of alien life looks ever closer and I’m teetering already—with excitement, with fear, with awe.

Blackstone 2
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Apr
22

.., one of the world’s largest and most influential private-equityWP firms, is planning an IPO of a minority stake, “perhaps 10%.” Appraisals of the company’s total value range “from $20 billion to double that.”

It has some 750 employees.

Talk about leverage.

Maybe the insolent goal is possible after all.

This post based on data from the Economist’s Bigger than Rod article. The magazine has given many, many pages to the topic of private equity—to the point that it has become a fixture in each edition. Good starting points are the 2007 special report, The uneasy crown, the 2004 survey, The new kings of capitalism, and the 2003 special report, The charms of the discreet deal. It’s a fascinating subject.

The billion dollar porn industry 2
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Apr
20

Considering several friends have bantered—semi-seriously—about starting an online Mexican porn ring, alluding of shocking wind-fall profits, and considering that last year “about 13% of website visits in America were pornographic in nature.. while search engines account for about 7% of site visits,” (Economist, Devices and Desires), it is quite a shock to find in the same article 2002 estimates of the (admittedly hard to track) online porn industry measuring it at only a billion dollars. Shockingly little, I’d dispassionately say.

Star
Why read The Economist 2
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7
Mar
16

Here 2 examples—a graph and a paragraph—from a typical article (about the paper industry’s dire prospects, of all things) in this week’s edition of The Economist.

Restructuring in the paper industry is proceeding at a furious pace. The first thing some paper companies have jettisoned is ownership of forests. International Paper (IP), one of the world’s biggest pulp-and-paper companies which is based in Tennessee, used to be the largest private landowner in America. A year ago the company sold 5.7m acres, or 90%, of its forestland—an area larger than Massachusetts. The $6.6 billion sale was “probably the hardest decision that I’ve had to make since I became CEO,” says John Faraci, IP’s boss since 2003. Most buyers were financial investors, but 5% of the land went to conservation groups.

The Economist, Flat prospects, Mar 15th 2007

Starting with the graph: it’s a 16-year window to worldwide newsprint production that drives home the article’s main point with eloquence: North America’s newsprint production (a fifth, you will notice, of the world’s; used to be a fourth) is slowly but decisively dwindling; production in the rest of the world, on the other hand, is increasing, albeit not in a hurry.

It’s full of conventions too, but they’re so well thought that you never need to be consciously aware of them as a reader: Take the upper-left red patch, a gentle way to guide your eyes to the graph’s title and instructions. The source always goes at the bottom, smaller-typed, and the y-axis is always labeled at the right, which I find more natural than the common left convention (it makes you look at the graph first, notice its pattern). The x-axis is usually the time axis, its gridlines usually obviated for clarity’s sake, and its labels, usually years, presented in a simple format that marks millennia only when needed. And graphs are always in this blue scheme—a convention to avoid color misinformation that still allows for meaningful distinctions between color shades: darker blue for the main variable under discussion, the foreground; lighter, fading blue(s) for the background variable(s).

As for the paragraph, it’s brimming with fascinating facts about the world. Did you know who the world’ biggest pulp-an-paper company was and that it was located in Tennessee (WP)—of all places? Did you know it also happened to be the largest private landowner in America? (A paper company! The largest private landowner in America!) Did you know it recently sold, because of restructuring, 90% of its forestland, 5.7m acres—an area larger than Massachusetts? Did you know it sold them for $6.6 billions? (Surprisingly cheap, considering it’s an area big enough for many a country.) Did you know most buyers were financial investors but 5% were conservation groups? (A wonderful example of how trade allocates resources, peacefully and quietly, to those who care about them.) Now you know.

Thoughts on music 2
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Feb
09

Is an essay posted by Steve Jobs two days ago [link] proposing to do away with DRM protection in digital songs. It’s a brilliant, persuasive pamphlet and easily one of the most surprising recent turns in Intellectual Property’s (IP) unfolding evolution—and with IP soon becoming the only property that matters, we are talking about a civilization-defining process here.

Now of course Jobs’s letter is self-serving, as The Economist clearly explains, but is he right? Is a DRM-free world better? With thousands of pirated songs in my library I could hardly make for a devil’s advocate now but I still wonder. If we renounce technological solutions, how will we reward creators? Will policing and empathy be enough? (Don’t be so quick to answer, we will all be creators soon.)

A technological arms-race between pirates and anti-pirates was bound to end in senseless wastage, but that doesn’t mean new structures are not hardly needed—economical structures (based on trade) not political ones (based on force)—if IP will prove ultimately viable.

Let’s see what we can think of—the problem just got a whole more interesting.

Color Globe Experiment 2
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7
Jan
19

This week’s edition of The Economist describes a real pretty experiment on color perception. Funny how most pretty experiments these days involve programming in one way or another. (EEM)

A liquid female condom that solidifies inside and melts with semen 2
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6
Dec
14

Global Wealth Distribution 2
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6
Dec
08

An impressive graph, both in execution and content, to be taken with one big grain of salt (read article for important considerations on the methodology and the difficulty of defining wealth):

Wealth is shared much less equitably than income: more than half of it is held by just 2% of the world’s adults. The distribution is equivalent to a world of ten people, in which one had $1,000 and the other nine had $1 each.

The Economist, Winner takes (almost) all


37% cree que hubo fraude 2
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6
Dec
08

Vaya que es sorprendente. Curiosamente, me entere de esto en The Economist, no se que tanta difusion se le haya dado en periodicos nacionales pero mi familia no estaba enterada.

At first glance it would be easy to dismiss Mr López Obrador’s actions as the inconsequential tantrums of a sore loser who was never able to substantiate his charge of electoral fraud. Certainly most of his fellow countrymen seem to take this view. But a substantial minority do not. A poll commissioned recently by the independent electoral authority found that 37% of respondents believed that fraud took place. Many of those would doubtless prefer a constructive opposition to constant rabble-rousing. Mr López Obrador’s party has plenty of reasonable leaders who have indicated that they will work with Mr Calderón. The “shadow government” is made up of second-tier figures.

El IFE (“the independent electoral authority”) publica aquella encuesta como la Evaluación de la gestión institucional a la luz del Proceso Federal Electoral 2005-2006 (Parametría).

” Hay varias otras gemas en esta encuesta a 2,000 personas del 8 al 12 de Septiembre del 2006, como el que 38.6% de los encuestados afirme que no participaria en futuras elecciones (aunque 76.6% esta muy o algo de acuerdo en que “La democracia puede tener problemas, pero es el mejor sistema de gobierno”) o el que la mitad (!) de los encuestados afirmo haber votado por Felipe Calderon, que los partidos politicos son considerados tanto la institucion politica mas corrupta del pais como la menos importante para el desarrollo del pais, que la principal razon (15.9%) por la que se cree que hubo fraude es la tardanza de los resultados, que 47.1% esta muy o algo de acuerdo con la frase “No me importa un gobierno NO democrático en el poder si logra mejorar mi nivel de vida”, que 43.6% cree que es mejor vivir en una “sociedad que respete derechos/libertades aunque haya desorden”, que un 40.8% esta muy en desacuerdo con las acciones de resistencia civil que promueve AMLO mientras que solo un 13% esta muy de acuerdo con ellas…

The $100 laptop 2
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6
Dec
02

Ah, the ever-recurring techno-myth: a dirt-cheap educational contraption to revolutionize third world children’s education. I can’t even remember when I heard about it first. I was thrilled though, enthused. But then with the undelivering years went my excitement. For one thing, the deployment plan is based almost entirely on governments, which is a nonstarter. More importantly, there might be better options. Cellphones are already a phenomenal worldwide success, even in the poorest countries, and that’s because they’re tangibly, immediately useful. A recent Economist article, Splitting the Digital Divide, mentions other less obvious but intriguing options.

And yet, reading yesterday’s New York Times article, For $150, Third-World Laptop Stirs Big Debate (yup, there’s been some price adjustment), made me think again of the amazing possibilities that can unfold from a personal mobile computer in the hands of a child. Blame it on Neal Stephenson’s The Diamond AgeAM with its amazing book-machine, the Young Lady’s Illustrated Primer —every self-learner’s wet dream.

At any rate, it seems to me that (save actual existence and deployment) the crucial factor for success will be software and so, for what it’s worth, here’s a promise: If and when Negroponte’s brainchild ever sees daylight, I shall stop whatever I’m doing, for three months, to develop mindblowing educational software for it. There, I said it.