Thursday, May 29, 2008

The Devil in Crude Oil Prices




An enormous transfer of wealth is going to the countries with energy reserves. There seems to be no stopping the high-flying oil price as it leaps above $130, a price that seemed unlikely just last December. The growth in oil demand will continue to be driven by China and Asia, in spite of the U.S. economic slowdown and recent drop in demand for crude as shown in yesterdays (29/5/08) stats. But so is the wealth coming from the 'little' countries around the world, creating further hardship for the vulnerable rural domiciled especially, destabilising regimes and fanning the mockery that is the cycles of endless bickering in our August house. Does Africa really need multi-democracy? I ask myself alarmingly frequently lately, when we read about how they (them parliamentarians) rarely get anything done except take sides, the sight of mature beings reverting to a stubborn streak I am tempted to call childishness, and the voters peer through the windows...... anyway sidetracked. Come to think of it, parliamenterians do get together- to discuss increasing their pay packet....

The followers that we manufacture out of ourselves means that when the first world is trying to find alternatives to the crude, we sit idly, waiting to fund the new technology cycle by purchasing that technology when the West discovers it, and then the cycle of dependency starts again. Maybe we should invest in local technology with all the Engineering human capital we have graduated from our various colleges and universities since the 60's. Surely there is something we can do rather than wait but where do we get the direction from when these politicians who we know have the capacity of really changing Malawi continue to rip each other apart! With their priorities and therefore every citizens messed up, we have been importing motor vehicles for years on end! do we always have to? we can't do it ourselves? its just technology for Gods sake! No one to invest? maybe our financial institutions are not ambitious enough? maybe with the new cycle of senior management coming in it may be different. Anyways, in the meanwhile the price of crude is on the increase and all budgets and financial forecasts are back to the drawing board. Earnings are skewed, prices will rise, our currency may weaken and cost-push inflation may settle in.

Our efforts should be in the direction of reduction of dependencies, without that we are but just a ship on the high seas being blown hither and dither in the direction of the winds, and this time aren't we definitely caught in the oil winds? What will improve our situation will be answers to the following questions contextualised in reality; Should we anchor? use the sails? jettison some cargo? full steam ahead? back to port ? Decisions need to be made. We are the custodians of the future, its all in our hands, but only with a different type of maturity in our August House to provide forward looking leadership will our fortunes improve as a nation. We may not need to change our politicians per se, that would be too drastic and maybe as much as we would want to disown them they do reflect our society, ahem! but they need, no they MUST re-focus their efforts in large measure. If we cannot discuss a countrys budget to conclusion, how can we run a country? No wonder most are only thinking of themselves, not entirely because they are selfish but because thats where they are most effective, in the small manageable settings they are able to amass enough resources to fix their immediate institutions, their families and themselves individually, we need our our small successes, but the Country? now thats a whole different ball game! its becoming a Horror project......They were able to rebuild after the world wars, we havent had one so it is possible, however without legislative sanity and direction, without the meeting of minds of our politicians, it will take far too much sacrifice . Phew!! Depressing! something positive then,


Man U (Moscow).

Brian

"No one ever attains very eminent success by simply doing what is required of him; it is the amount and excellence of what is over and above the required that determines the greatness of ultimate distinction."Charles Kendall Adams1835-1902, Professor of History and Author

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