Information for the Masses: Another Dose of Links

In a previous post I evaluated a collection of internet sources using Webby Awards and IMSA guidelines. Today, I would like to continue this endeavor and provide a second assortment of information deposits. The intention is to uncover unknown sites that contain quality content; however, I would like to start off with an exception. The Economist is a popular and well-praised resource, delivering analytical articles about current affairs with the purpose of revealing market developments. Typically, a site as well known as The Economist will not be listed here, especially since its affiliate blog has already been mentioned. Nevertheless, the consistent and eminent quality this site provides is unparalleled and should be a daily reader for anyone interested in economics or finance. Unfortunately, unrestricted access to the site requires a subscription and may not be an option for some users. Economist's View, on the other hand, is a free blog that delivers multiple posts per day. The author is an economics professor at the University of Oregon who provides insightful expositions on current economic activity. The site is also frequented by many readers and a great place to interact with others. Regrettably, posts depend on quoting generously instead of providing unique analysis. Contrahour is a blog with exactly the opposite qualities. A period of three months can lapse between new content, but the writer tends to be very technical in nature and supports arguments with in depth reasoning and charts. Though not the best daily resource, contrahour provides specialized breakdowns that are rare to come by.

Economic and financial data is imperative for analysis and should always be at the fingertips of those trying to understand the market. For example, EconData.Net is a wonderful tool for gathering information. It is essentially a library of external web pages, breaking down inquiries by subject and provider, with a simple and navigable layout that makes for convenient researching. However, the site is bare of other important materials. On the contrary, The World Bank and International Monetary Fund are two resources that provide data and statistics as well as relevant publications. Both of these invaluable collections are important in understanding an ever expanding, global economy. Unfortunately, articles and briefs supplied on these sites are specifically geared towards international developments and commerce and do not provide general analysis. For a broader perspective on economic theory, one can turn to the Library of Economics and Liberty, Economic Policy Institute, or the National Bureau of Economic Research. With previous authors and members consisting of Nobel Prize winners, their goal is to deliver high quality, unbiased research. The paper topics on these sites range from labor markets to education and are a great help in following the developments of modern economics. Their use, however, will best be utilized with a specific purpose. Finally, I present a site with arguably useless posts. Between the Hedge's format is extremely difficult to follow and the synthesis of information is far from exemplary. Fortunately, the site's linkroll is impressively extensive and broken into accommodating categories, redeeming the blog of its major flaws. The site is a great portal for daily information.

As I've stated before, feel free to post links in the comment section and I will review them.

Less Common Sources: Disposable Information or Not, Read it Anyways

The economic and financial realm epitomizes the Information Age. Predictably, when such a large amount of data is available, economists and investors rely on a few agents to synthesize and interpret facts. Practically every stock player uses Google Finance and reads the Economist or the Wall Street Journal. Though there are a variety of well known news hubs which sum up current events, it is important to routinely, if not often, explore supplementary wells of information. These sources do not have to be as intensively exercised as Bloomberg or Market Watch, but should have a constant presence in one's research. I have chosen to blog about a few of many underused or unknown internet sites that provide quality information and evaluate them with respect to Webby Awards and IMSA criteria. Keep in mind, content is the most important benchmark; however, the type of content may differ greatly.

For example, the Central Intelligence Agency (CIA) World Fact Book is an incredibly useful site, but may not adhere to standard expectations of an economic or investment resource. Ever since globalization became prominent, detailed facts regarding other countries are imperative to understanding financial forces. The CIA Fact Book is an immense library of aggregated data on hundreds of countries. The information is well organized and in depth, providing everything from literacy rates to amounts of irrigated land. Unfortunately, the site provides no interpretation or interaction and is useful only for raw data collection. Similarly, the Federal Reserve is a great source of economic statistics when researching the United States. Unlike the CIA Fact Book, the Federal Reserve has a library of research publications to compliment the data. There is too much information to sift through without purpose and I recommend having an agenda before referring to this site. Additionally, as with any government source, a researcher should always be aware of possible biases. In contrast, the Political Economy Research Institute (PERI) and the Peterson Institute for International Economics (IIE) are two high quality, nonpartisan academic sites. Both display a professional design and host up-to-date analysis and policy solution based papers which are full of useful insights. The works can be dense and technical and therefore don't provide efficient, daily reading material. Global Economy Matters (GEM), Econbrowser, and Free Exchange are three other technical sites, but the material is presented in blog format and much easier to frequent. Econbrowser appears to host the highest level of interactivity with multiple comments per post. Unfortunately, the other two blogs' comment sections are barren. All three blogs, though, lack citations and do not link to exterior sites where facts were gathered.

Another data hub is The Online Investor. The content on this site tends to be more informative than analytical and it is grouped accessibly without excessive detail. The site's main downfall is lack of scope and hopefully the editors will expand their research. Like The Online Investor, Ticker Sense's scope of information is rather limited. However, this site contains curt posts that remind readers of simple daily analyses which are easily overlooked. Finally, I leave you with a site that was recently launched and may not yet be well known--U.K. Google Finance. This is a great place for obtaining European economic and financial reports and it provides access to what foreign audiences receive. However, don't expect any unique perspectives as it is comparable to the original Google Finance. If you encounter any substantive sites, feel free to post the link in the comment section.

Dubai: An Attempt at Transmuting Sand into Gold

The 21rst century is witness to unprecedented developments, a hallmark of globalization, and no entity better exemplifies this progress than Dubai. The emirate plans to rival China's economic growth rate within the next decade, targeting 11% by 2015. Already surpassing expectations set for 2010, there is little doubt Dubai has become an economically diverse powerhouse in the Middle East. The large, vested interest in rapid expansion results from the fact that within ten years the current rate of oil extraction will deplete supplies, forcing Dubai to rely solely on alternative domestic productions. Luckily, heavy investment in growth sectors such as tourism, finance, manufacturing, and free zone privatization has allowed Dubai to reduce oil dependency to less than 6% of its gross domestic product (GDP). In essence, Dubai's objective is accomplished. However, the price aggregated during their expedited growth may prove to be too costly.

The massive amount of construction occurring (as seen in the image on the right) demands large quantities of immigrant laborers, specifically Indian expatriates. Theoretically, if worker supplies can continue to grow, aggressive building techniques pose no imminent threat. Unfortunately, Dubai's labor vulnerability is vividly apparent. Just recently, the Economist reported that 40,000 workers "expos[ed] the frailty of Dubai's economic boom" by bringing several large projects to a two-week standstill during a strike. Simultaneously, India's prosperity is providing competitive jobs for expatriates and forcing construction companies to raise wages. Heightened tensions stemming from increased costs, unstable work groups, and alternative employment are characteristics of economic volatility. Though Dubai continues efforts in improving laborer accommodations by placing pressure on respective employers, there is no adequate way to quell the increasing need for migrant workers.

Additionally, there are natural resource problems. A region containing over half of the world's identified oil reserves is, ironically, desperately struggling with energy issues. In 2005, blackouts and spikes in oil prices demonstrated even the Middle East is not immune from energy shortages and this presents a serious problem for a Dubai that depends on constant power to sustain its radical growth. To compound the problem, Dubai Electricity and Water Authority stated "power...demand is rising by an average rate of 20%...each year." Much like the worker strike that halted construction, if energy supplies dwindle to levels restricting ongoing projects, Dubai could find itself in a serious financial quandary. Billions of dollars invested in incomplete projects is sunk cash that will provide no return. However, even if Dubai is capable of obtaining enough natural resources and workers to complete constructions, future success is based on the assumption that incredibly large amounts of energy will be disposable. Although solar power may present a solution to this problem, it is far from established and only underlines the speculative nature of Dubai's growth strategy.


An alarming example that demonstrates the absurd amount of power expected to be consumed is Dubai's indoor ski resort (as seen in the image on the left). The structure will be approximately 400 meters in length and 18 meters high, housing over 6000 tons of snow at fluctuating temperatures below 0 degrees Celsius. This will be accomplished in an environment that frequently breaks 40 Celsius and can reach temperatures as high as 48 degrees Celsius. Though it appears no specific energy estimate has been publicly published, just theorizing about the amount of power required to keep a "warehouse" below zero in such a hot climate is astronomical. Considering the body of energy Dubai will depend on in the future and the lack of established, foreseeable alternatives, such an ambitious development plan is a high risk investment.

Dubai's problems are broader than just construction and resource dilemmas. Currently, the emirate is home to over 1.5 million people and roughly 70% are expatriate workers. As land development slows, available construction employment will decrease and substitute jobs will have to be found. The problem is that the jobs available will be imported professions requiring a certain degree of education. Even with recent improvements in teaching facilities, there will be a lack of instructors to appropriately accommodate the demand. One may argue that Dubai's large service industry will provide a niche for low skilled workers. Though this is true, it will still be impossible to satisfy the rapid assimilation of over a million laborers. Alternatively, the government could expel people, but since such a large majority of the population is expatriate, the risk of social upheaval makes this an unlikely solution. Furthermore, foreign investment and immigrant businesses have replaced oil but are far from permanent fixtures. Christopher Davidson from Shariah Finance Watch says that any economic swing triggered by aforementioned problems or instability rising in the region can create a massive evacuation of foreign capital. After extensive investigation, I believe the underlying issue surrounding all of Dubai's problems is the absence of developed social and economic infrastructure. Successful, rapid growth requires stability in both realms.

Investing heavily in tourist and service industries, massive construction, and outlandish amenities is a recipe for rapid but risky growth. The major focus of Dubai should be human capital and gradual political reforms; primarily, education and the creation of a stable and productive work force. Afterwards, Dubai should demonstrate economic and political stability within its own borders and with neighbors such as Iran to encourage foreign business growth. This plan would reduce the demand for natural resources and laborers and render Dubai self-sufficient, relying on less risky inputs. Unfortunately, the Arab world has proved to be remarkably stubborn and my proposal requires the distribution of wealth, not an appealing perspective granted the leaders of Dubai want to consolidate national pride in the form of extravagance and the population largely consists of immigrants.