Re: Book Review Folder - 2008/2009/2010/2011
Posted: 30 Aug 2011 07:57
Energy: Perspectives, Problems, and Prospects


Banker to the World: Leadership Lessons From the Front Lines of Global FinanceThis book, written by a Harvard physicist for people who remember some of their high school physics and are unfazed by numbers, provides quantitative answers to most of their questions about energy. It presents a whirlwind history of humans’ relationship with energy sources, which at first was mostly wood and brawn, with help from domesticated animals, wind, and water. All that changed when Abraham Darby discovered how to make coke from coal in 1709 and when, soon after, Thomas Newcomen invented the steam-driven pump. These two technical leaps ushered in the age of coal-generated steam power -- and the age of fossil-fuel dependency. McElroy’s book includes an extensive discussion of the physics and geology of coal, oil, and natural gas, along with useful chapters on nuclear energy, electricity, transportation, climate change, carbon capture, and ethanol (which, McElroy points out, will do nothing to mitigate climate change if it is made from corn but could be helpful if it could be made economically from cellulose). The book has a clearheaded discussion of a low-carbon energy future.
Treasure Islands: Uncovering the Damage of Offshore Banking and Tax HavensAs a senior officer at Citigroup, Rhodes has been at the center of international banking for the past 30 years, especially when debt restructuring was involved. In Banker to the World, he reminisces about his challenging, and sometimes harrowing, experiences, organizing the book around eight lessons that he derived from them. These include the value of prompt, decisive action and of knowing the culture, history, and customs of the people on the other side of the negotiating table. Rhodes covers the debt restructurings of Nicaragua (1980), Mexico (1982), Brazil (1983), Argentina (1992), South Korea (1998), and Uruguay (2002) and the nonrestructuring by Argentina (2001). He also recounts Citibank’s successful efforts to engage in eastern Europe after the fall of communism and to reengage in China, a market its predecessor entered in 1902. For those interested in the operational side of international finance, this is an absorbing read.
Global Warming Gridlock: Creating More Effective Strategies for Protecting the PlanetThis book is a vigorous and well-researched polemic against financial deregulation and the offshore tax havens around the world that have come into widespread use in recent decades. Shaxson, a British journalist, especially attacks the remnants of the British Empire -- Bermuda, the Cayman Islands, the Channel Islands, and the like -- and their supporters in the City of London and in the British political establishment, but their American fellow travelers also get a drubbing. He makes clear that “offshore” is a misnomer, since many ostensibly offshore practices have been adopted onshore in the United Kingdom and the United States. The U.S. state of Delaware and the British-controlled island of Jersey receive special scrutiny, and in the author’s view, the legislatures of small jurisdictions such as these are in effect for hire by major outside financial interests. Many of them enshrine client secrecy in law, which, not surprisingly, attracts wealthy people and companies (and criminal organizations) wanting to evade taxes and disagreeable regulations. Shaxson is not impressed with efforts during the past decade, seemingly led by the U.S. government, to make this global system more accessible to law enforcement agencies. Influential Americans, especially in finance, have too great a personal interest in preserving and even enlarging the gaping holes in the existing systems of taxation and regulation.
According to Victor, the Kyoto Protocol’s target-based approach to climate-change negotiations is fatally flawed, as is the UN-based process by which 193 governments are expected to reach agreement on a complex issue that touches every economy. Drawing on the history of successful international negotiations, Victor counsels greater patience; the term “urgent,” he says, is overused in public discussions of climate change. He argues that a smallish club of the major greenhouse gas emitters (including, of course, China and the United States) should undertake serious negotiations on actions to be taken, not just targets to shoot for. Victor also contends that existing technologies are not likely to limit climate change significantly, and so a major collaborative effort to develop new ones is called for. Given past emissions, some climate change is inevitable, putting a premium on strategies of adaptation. But adapting to climate change, in Victor’s view, will primarily be a local challenge, dependent on local circumstances, not an issue for a grand global bargain.