Tag Archives: economy

in english

Recommended book: Why your world is about to get a whole lot smaller

You might have heard of peak oil, the idea explaining the point in time when we have reached the maximum amount of oil produced, after which starts a decline that affects the world as we know it (and yes, I’m using this phrase on purpose).  Jeff Rubin, a Canadian economist, took the issue head-on in this book, explaining not only why in his view the current economic crisis is at its source one huge oil price shock, but also how will the world economy change once oil is not so plentiful, more expensive and there are more economies hungry for it.

Basically, what he predicts is an end to the current version of globalisation, where you have distributed value chains, cheap travel and products from all over the world at your doorstep.  I don’t know about you, but even if I live more or less ecologically, use renewable energy where possible and don’t have a car, such a future would wreak havoc with my lifestyle as it would be impossible for me to find the food I want and be able to visit my family over the holidays.  The subtitle of this blog is “musings from a child of globalisation” after all, isn’t it?

I think it is time to sweep this issue under the rug every time it is brought up and start thinking about what kind of innovations are needed.  Who’s with me?

in english

The “Mexicanisation” of the Mexican middle class

I’ve mentioned it before (1,2) how the middle class in Mexico seems to to have been slowly growing and to start becoming more “brown”.  While I don’t know if this trend is still continuing given the current drastic contraction of the Mexican economy, I did find some anecdotical evidence of this trend while observing the local tourists around me in my recent trip to Mexico, both those coming from recent holidays in Europe and those spending their holidays in the country.

If true, that is definitely one welcome development.

in english

Stimulating domestic tourism in Mexico


Vive México campaign

Originally uploaded by Chiva Congelado

One thing that really caught my attention during our last trip in Mexico is the huge marketing campaigns to stimulate domestic tourism. There were ads not only talking about Mexico in general but also about specific destinations within the country (paid for by local tourism councils).

With the dry-up of foreign tourism due to the publicity given to several recent events, it’s not a surprise they’re turning to the people already living there first. I didn’t see anything out of the ordinary at all, and enjoyed my trip immensely. Given the importance of the tourism industry to the economy, I really hope people start coming back, as the country has a lot to offer to the visitor.

in english

The great economic shift

What does this mean? What we are seeing is the shift of economic power from the United States & Europe to markets elsewhere, and especially China, India and parts of the Middle East are in good shape to reap the rewards.  However, since the system is built around the countries of the G7 with the US as the main motor of worldwide consumption, co-operation between all countries is needed, or else the rise of protectionism will amplify the current situation.

I wouldn’t be surprised if in case the crisis lasts long (hopefully not) China ends up bailing the US so that its own economy can keep on growing…

in english

What a difference…

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When I moved to Finland to study in the summer of 2000, 8.35 Mexican pesos used to buy one euro (the Finnish markka, still legal tender, was already pegged to the euro, and transition to banknotes would happen one and a half years later).  A non-EU student like me needed to show he had 30,000 markka (5,045 euro or 42,000 pesos of August 2000) for his living expenses for the year in order to be granted a residence permit.  I had to sell my car and got some help from my parents to reach that sum, but it seemed a better proposition than continuing studying at a private university where the tuition per half year cost 50,000 pesos (5,990 euro or 35,600 markka of August 2000).  Furthermore, I didn’t need to pay tuition in Finland.

Today’s rate is 19.1 pesos per euro.  Furthermore, a non-EU student now has to demonstrate that he/she has 6,000 euro every year in order to be given a residence permit, so my present-day equivalent would need to get 114,000 pesos every year to be allowed to come to Finland to study (a 271% increase in almost 9 years!).  The Finnish Parliament is also evaluating the possibility of adding tuition fees for non-EU students.

I hope I’m wrong, but I don’t expect many Mexican students coming here anytime soon.  I guess it was a matter of timing.

in english

Russian tourists in Finland

Tahko slopes

We were skiing in Tahkovuori very recently and I was wondering about the amount of Russian tourists to be found unlike the previous times I’ve been there.  Searching a little bit I found this and this article, where they explain that there is a boom in visits of Russian citizens from last year.

If you are looking for a job in Eastern Finland (currently suffering from difficult times in the wood industry), try hospitality and learn some Russian.