The Great Debate

On Monday I went to Bloomingdales, the Gap and Starbucks but passed on a visit to Magnolia Bakery. Instead I  stopped by the St. Moritz bakery where you can order hot chocolate and sit by a video of a cozy winter  fire that overlooks the indoor ski slope and is just around the corner from the largest candy store in the world, which happens to face an aquarium that occupies an entire wall on one side of the world’s largest shopping malls. This by the way is opposite of what claims to be the world’s largest candystore whose mission statement is to make every day “happier’. Earlier, while exploring the watery depths of the bright Pink Atlantis Hotel (one of the white elephants of the property crash of 2007) I knew it was really the last kingdom because the fish swam around two cracked thrones and other kitschy stone artifacts.

Dubai is utterly overwhelming, the kind of  dystopia that blogger Evgeny Morozov sees in Huxley, a consumeristic paradise where mind-numbing shopping replaces real thought. Most of the I had no idea where I was except that my passport had been stamped Dubai  and many of the mall-going women were shrouded in black. After a few hours I sank into a state of ennuie. Given boatloads of oil money in the 1970s and the chance to build a whole new city, who on earth would decide to build a series of shopping malls?

It’s not like the developers didn’t have ambition, what with the architecture that demands superlatives — the gondolas, medieval stone houses and soaring illuminated sky scrapers and islands built in absurd never-before-seen configurations. But why not build a museum with, say, the most incredible collection in the world or a university with the finest research laboratories? With so much money why build this Disneyland? And what about the workers who make up most of the population?

Who would go to expensive old Harvey Nichols or French boulangerie Eric Keyzer? The answer is pretty much anyone who can afford it goes not just to shop but to eat. For Arabs living in the region, the malls are closer than a flight to London or New York, they are air conditioned in the sultry summer, they have indoor sports and entertainment facilities, and are safe and family friendly. They are the old village green and the public square that Jurgen Habermas wrote about though not as he imagined it, surely.

The choices are limitless: an ice skating rink, a swimming pool, cinemas, as well as Penhaligon’s, Haagen Daz, California Pizza Kitchen and Nando’s. Even a tiny artsy neighborhood in an even tinier industrial quarter that showed angry Iranian sculptures of war-time prisoners, some held by Iraqis and some by Israelis on their knees with their hands behind their heads. My favorite piece was a video of a row of colorful balloons bobbing on the water that were tied together and shot one by one. This piece was done by a Turkish artist, who also filmed the balloons being executed. Metaphor for the human condition, anyone?

Global oil consumption could hit a massive 134 million barrels per day (bpd) by 2030, up from 85 million bpd currently, and demand is unlikely to peak in the foreseeable future, according to a recent academic paper.

While the projection has achieved widespread headlines, and been seized on by oil bulls as further evidence the world will struggle to meet rising demand, it is based on controversial  assumptions about how emerging-market consumption will respond to increasing prices.

It is contained in a careful econometric study published by Joyce Dargay and Dermot Gately, “World oil demand’s shift toward faster growing and less price-responsive products and regions.”

– John Kemp is a Reuters columnist. The views expressed are his own —

As OPEC ministers meet in Angola this week, they can congratulate themselves on a brilliant piece of market management.

Quick decision-making and aggressive output cuts over the last 18 months have stabilised prices at their highest level in real terms since the early 1980s. And this despite the deepest recession since World War Two.

– Bernd Debusmann is a Reuters columnist. The opinions expressed are his own –

The U.S. case for isolating Cuba and keeping it out of international meetings such as this week’s Summit of the Americas sounds simple: the country doesn’t have democratically elected leaders, it holds political prisoners, it violates human rights and its citizens can’t travel freely. All perfectly true.

But if the logic used for isolating Cuba were applied consistently, neither China nor Saudi Arabia, for example, should have taken part in the London G20 summit. The U.S. State Department estimates China has “tens of thousands” of political prisoners and describes it as “an authoritarian state in which the Chinese Communist Party … is the paramount source of power.”

– John Kemp is a Reuters columnist. The opinions expressed are his own –

China’s decision to link domestic fuel prices indirectly to the international crude oil market, subject to a price cap, while hiking the consumption tax on gasoline and diesel and phasing out a variety of road tolls and other fees shows Saudi Arabia’s worst fears about high prices and demand destruction are starting to come true.

It seems likely to confirm the kingdom’s determination to see prices stabilize around $75 per barrel, well below recent price peaks, and far below the level sought by some other OPEC members, as well as international oil companies and advocates of alternative energy.

–Paul Taylor is a Reuters columnist, the views expressed are his own–

Anyone who expected the major emerging economies to write fat checks in exchange for being invited to the first G20 leaders’ summit on rescuing the world economy will have been disappointed.

But that should only have surprised the naive.

Despite intensive lobbying by British Prime Minister Gordon Brown of Saudi Arabia and China, the rising powers were never likely to make a cash down-payment to the International Monetary Fund before getting more seats and votes at the top table.

Islamist militants imposing a strict form of Islamic law are knocking on the doors of Somalia's capital, the country's president fears his government could collapse -- and now pirates have seized a super-tanker laden with crude oil heading to the United States from Saudi Arabia.

Chaos, conflict and humanitarian crises in Somalia are hardly new. It's a poor, dry nation where a million people live as refugees and 10,000 civilians have been killed in the Islamist-led insurgency of the last two years. A fledgling peace process looks fragile. Any hopes an international peacekeeping force will soon come to the rescue of a country that has become the epitome of anarchic violence are optimistic, at best.

But besides causing instability in the Horn of Africa, the turmoil onshore is spilling into the busy waters of the Gulf of Aden. The European Union and NATO have beefed up patrols of this key trade route linking Asia to Europe via the Suez Canal as more and more ships fall prey to piracy. Attacks off the coast of east Africa also threaten vital food aid deliveries to Somalia.

The price of oil may have dropped by more than half in recent weeks but the Saudi petrodollar appears to have lost none of its allure, judging by the procession of very important visitors to the New York Palace Hotel this week and to the U.N. General Assembly. With President George W. Bush in the lead, they have all come to present their compliments to King Abdullah, the Saudi ruler, who has turned the Manhattan hotel and the world body into an extension of his court, complete, it would seem, with a Majlis to receive petitioners.

Naturally, all the VIPs visiting him are eager to congratulate his majesty on his interfaith initiative, a gathering of religious and political leaders which took place  this week under the auspices of the United Nations. The meeting has attracted extravagant praise from, among others, Tony Blair, the former British Prime Minister,  and Shimon Peres,  the veteran Israeli president.

It is a fact that the king's initiative is unprecedented and bold, taking place despite the displeasure of many influential religious clerics at home. It is also a fact that he is the first Saudi leader to have travelled to the Vatican, opening dialogue between the two largest religions.

– Paul Taylor is a Reuters columnist, the views expressed are his own –

LONDON (Reuters) – Move over America! Make space Europe! The world’s top leadership table is expanding to bring in emerging powers from Asia, Africa and Latin America to help rescue the global economy.

This week’s Washington summit of 20 nations, called to discuss reforming the international financial system and avert a further worsening of the credit crisis that began in the United States, sets a precedent for a new international order.