Esther Duflo: Reshaping the Fight Against Global Poverty

Esther Duflo’s name is well-known in the field of development economics. Her groundbreaking research and innovative approach to combating global poverty are the reason for her fame.

Born in Paris, France, in 1972, Duflo's intellectual journey was shaped by her upbringing and life experiences. She was catapulted to the forefront of her field, breaking down barriers and gaining global recognition.

Duflo's mother was a paediatrician who worked in humanitarian causes, and her father a maths professor. They instilled in her a strong sense of social responsibility and an appreciation for analytical rigour.

Duflo initially considered a career in history and public affairs, but after a 10-month stint teaching French in Russia, she saw at first-hand the effects of economic upheaval on people's lives. This sparked an interest in economics, and she devoted her working life to understanding the causes of world poverty.

Duflo returned to France and followed her academic goals, earning a Master's degree from the Paris School of Economics before heading to the US for PhD studies at the famed Massachusetts Institute of Technology. There, she crossed paths with economists Abhijit Banerjee and Michael Kremer, who would become long-term working partners (and, in the case of Banerjee, her husband).

Duflo's work stands out for her pioneering use of randomised controlled trials (RCTs) in development economics. Inspired by the rigour of medical research, she advocated using this methodology to evaluate the real-world impact of social and economic reforms.

The underlying premise is straightforward, but effective. By organising research studies with randomly assigned treatment- and control groups, researchers could isolate the unique effects of a certain policy or programme, cutting through the complications that plague observational data.

This novel approach represented a substantial change from standard macro-level analysis in development economics, shifting the emphasis to micro-level actions that could alleviate specific characteristics of poverty. Duflo, Banerjee and Kremer have conducted hundreds of RCTs worldwide as part of their work with the Abdul Latif Jameel Poverty Action Lab (J-PAL), a research institute co-founded by Duflo at MIT in 2003.

Their research provided essential insights into a range of development issues, including education, healthcare, access to finance, and governance.

Duflo's work is distinguished by her emphasis on the intimate relationship between research and policy. Her commitment to evidence-based solutions has resulted in beneficial co-operation with governments and NGOs all around the world.

Duflo's contributions have received widespread recognition. In 2019, she received the Nobel Memorial Prize in Economic Sciences (with Banerjee and Kremer). She was the youngest person, and only the second woman, to earn this economics honour. Her work has other accolades, including the Princess of Asturias Award for Social Sciences and the John Bates Clark Medal.

Duflo's impact can be seen in the way her work has transformed lives. RCTs inspired have guided educational programmes to improve learning outcomes and the distribution of mosquito nets to combat malaria. They have also influenced the design of microfinance initiatives that promote an escape from poverty.

Duflo is a dedicated educator and mentor. She has taught at MIT and the Collège de France, eager to pass on her knowledge and passion.

Her influence reaches beyond academia, and she has been praised for her ability to explain complicated economic concepts to a broad audience. Her best-selling book, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, co-written with Abhijit Banerjee, provides an accessible account of their work, dispelling myths and emphasising the importance of evidence-based approaches in addressing development challenges.

Esther Duflo's legacy is one of unwavering dedication to academic rigour, social effect, and a spirit of innovation in the never-ending fight against poverty.


Recycling Plastic: Is it Working, and are we Doing Enough…?

Once seen as a ‘wonder material’, this by-product of the oil industry has become a global environmental menace.

Millions of tonnes of plastic garbage are dumped into landfills and oceans each year, wreaking havoc on marine life and ecosystems.

We have a stop-gap solution for the non-biodegradable detritus that doesn’t just get tossed into the nearest ravine, river, or road: Recycling. But does that work well enough to balance things out?

Recycling has for years been hailed as “the solution” to at least part of the problem. Households and companies are encouraged to separate their trash, towns establish complex and elaborate collection systems, and consumers are persuaded to opt for items manufactured from recycled materials where possible. The question remains: How effective is this global campaign?

The appeal is obvious. If we can reduce the demand for new plastics and limit production, we can – in theory, anyway – mitigate the material's detrimental impacts. The reality – surprise – is complicated, and plagued with challenges. The process involves more than just collecting and processing waste; it includes onerous processes, each of which influences the overall viability and efficiency. The factors that drive the success or failure of recycling programmes include participation by individuals and companies, the careful sorting of various types of plastic, complex technical processes at specialised facilities, and market demand for the recovered materials.

It will come as no surprise to learn that popular perceptions of the system’s efficacy can differ dramatically from its actual outcomes. While many of us dutifully throw plastic tubs, bags, boxes and other debris into marked, well-distributed containers in our towns and cities, others – probably the majority – don’t bother. And so, it ends up in landfills or, worse, just tossed out of car windows or over fences. These gaps in our efforts pose questions that must be considered. Are there any better ways to handle the issue?

Various issues plague the recycling sector, and alternatives exist. By integrating professional perspectives, case studies and research, a slightly hopeful picture starts to emerge. Are our global recycling efforts genuinely making a difference, or do we need to reconsider our approach?

The Realities

The industry is frequently touted as a beacon of hope, but the reality is more complex – and less positive – than this generic optimism suggests. To understand the true state and usefulness of recycling, it is critical to look at the mechanics of the process, the types of plastics used – not all can be recycled – and the overall economic and environmental implications.

Plastic is not a single substance; it’s a class of polymers of varying properties and applications. There is PET (polyethylene terephthalate), commonly used in water bottles, HDPE (high-density polyethylene), used in detergent bottles, and PVC (polyvinyl chloride), which is used in just about everything, from plumbing pipes to garden furniture and children's toys. Each necessitates a different and distinct recycling method, complicating the process.

It all begins with the crucial step of collection, followed by sorting, either manually or via advanced tech. After this comes cleaning to remove contaminants, necessary and difficult due to food traces and other residue. The cleaned trash is then shredded, melted, and moulded into new items. But not all plastics make it through the process to the point where “new” plastic is created; many are “downcycled” into a lower-quality, less flexible, material.

Economic Viability

Despite increasing infrastructure and the development of new equipment, global recycling rates remain frustratingly low. Only around nine percent of total plastic products are recycled, with the remaining 81 percent ending up in landfills, or the environment.

This has a number of causes, including a lack of uniform systems around the world, insufficient economic incentives, the higher cost of recycling compared to manufacturing new plastics – and public apathy.

Market dynamics make it less economically viable. Recycled plastics usually compete with “virgin” plastics, which are often less expensive to produce thanks to low petroleum costs and larger production volumes. Without significant subsidies or legislative reform, recycled materials fail to gain market share, discouraging investment in infrastructure.

Some Challenges

The sector faces major problems that reduce its efficiency. Contamination is a big one, as it can render large batches of plastic unsuitable for processing. Demand for specific types of plastics varies according to changes in consumer behaviour and regulation.

Technical constraints further limit the drive to reuse the millions of items that flood our society, our shops, and our countryside and waterways. And there is a limit to the number of times plastics can be recycled; eventually, the remaining, still durable mush has no potential for reuse. This fundamental constraint needs the ongoing supply of “raw” materials to maintain usable quality, compromising long-term viability.

Such complexities and limitations demonstrate that while recycling is theoretically an important element in the solution, it is far from a cure-all. The success of recycling programmes varies, depending on economic, technical, and behavioural factors. As we learn more about the sector and the processes involved, it becomes clear that a multidimensional approach is required if we hope to reduce consumption, advance technologies, and implement structural reforms.

This creates the need for ongoing debate about the global triumphs – and failings – of recycling systems, as well as an investigation of other tactics that could provide a more sustainable solution.

Wins and Losses

To help us to properly understand the complexity of the issue, there are practical examples from around the world that must be evaluated and examined. Case studies demonstrate possibilities and limitations, as well as highlighting elements that influence their success or failure.

Let’s look at three different cases: Japan's effective system, the US, beset by challenges, and Europe, where some creative alternatives have been found.

Japan’s Model

Japan stands tall as a leader in the field, with one of the world's highest recycling rates. The secret to its success is a thorough and well-integrated waste-management system. Homes and companies are compelled to sort waste into numerous categories. This comprehensive sifting-at-source significantly reduces contamination levels and streamlines the process.

The Japanese government gives aggressive support to recycling via education and stringent rules that push manufacturers and consumers to prioritise the reuse of products. The combination of community engagement and supportive legislation has resulted in a strong culture where recycling is regarded as nothing less than a civic duty.

The US: a Fragmented System

In comparison with Japan, America’s recycling system is a splintered mess, with substantial differences in programmes used in different states – and even localities. This has led to misunderstandings about what can be recycled, resulting in high contamination rates and low overall effectiveness.

And the US has extra obstacles due to economic issues. Shifts in global recycling markets, particularly China's ban on the import of foreign waste products in 2017, left many towns with an abundance of recyclables – but no cost-effective means to process them. The result? Growing landfills of potentially recyclable materials. This underlines the risks of relying on international markets.

Europe: Producer Responsibility

Europe has been at the forefront of the development of alternative systems, frequently guided by the notion of extended producer responsibility (EPR). This requires manufacturers and producers to manage the disposal of products at the end of their useful lifecycles. Legislation has encouraged many companies to design products with recycling in mind during manufacture, resulting in increased recycling rates and advances in sustainable packaging.

Germany and Sweden have adopted modern technology for waste treatment, such as automated sorting facilities that use infrared sensors and AI to correctly identify and sort plastics. These breakthroughs, along with solid legislative frameworks and widespread public awareness, have positioned Europe as something of a pioneer.

These case studies demonstrate how the effectiveness of recycling is influenced by a variety of factors: public participation, government policy, economic incentives, and technological improvements. Japan demonstrates the importance of societal commitment and regulatory backing, while the troubles facing the US highlight the risks of taking a non-uniform approach and relying on volatile export markets. Europe's innovation demonstrates the potential of tech to find solutions, and the effectiveness of producer-responsibility.

These diverse experiences impart important lessons about the possibilities and limitations of the sector and its potential to reduce plastic waste. As we investigate alternatives to “traditional” recycling, these examples show the need for more holistic solutions that incorporate technology, consumer behaviour, and sound governmental frameworks.

Rethinking the Issue

While recycling is an important initiative in controlling what happens to society’s waste, its limitations highlight the need for more comprehensive, sustainable solutions. There are a few that could supplement, or even replace, traditional recycling: lessening plastic dependency and increasing sustainability, for a start.

Reduction Plans

The best idea, of course, would be to eliminate the use of plastic. This would require changes in customer behaviour and shifts in industrial techniques. Consumers can choose reusable products over single-use ones, reducing demand. Companies could use less plastic in their designs, or replace it with sustainable materials such as glass, metal, or biodegradable composites.

Biodegradable Plastics

Biodegradable plastics are designed to degrade swiftly and safely, using elements derived from natural sources such as maize starch, potatoes, and cellulose. While biodegradable polymers are not a cure-all – they require specific circumstances to decompose properly –  they are a step in the right direction.

Polyzme Tech, based in Spain, uses enzyme technology to break down polyethylene and other polyolefins used in agriculture in the soil. A proprietary process using peptide and enzyme technology “will completely biodegrade polymers, leaving no trace” when in contact with soil and waste streams, says chief executive Carl Schafer.

“Our enzymes are comprised of nine main ingredients, all derived from vegetable by-products. When they’re infused into the plastic, the surface changes polarity – a catalyst for microbes to attach to the plastic. The result is natural biodegradation.”

The technology received funding from the EU’s Horizon 2020 and innovation programmes.

Reuse Systems

This could be an effective approach: products constructed for various uses, minimising the need for disposal. In some countries, initiatives such as domestic product refill stations and deposit-return schemes for beverage containers have gained support. These technologies not only reduce plastic trash, but also promote a transition in consumer culture towards a circular economy model.

Shabra Group is a recycling, plastic reprocessing, manufacturing and supply company based in Monaghan, Ireland – the only facility in the country that can upcycle post-consumer PET bottles. It recently invested €6m into a state-of-the-art hot-wash recycling line, enabling it to recycle over 20,000 tons of plastic per year.

Group president Rita Shah is a keen advocate of the circular economy, with the firm’s commitment “demonstrated in our work with leading global brands”.

Corporate Policies

These alternatives require effective government policies and corporate behaviour. Policies that reward the reduction of plastic production and the use of biodegradable alternatives, and support the construction of reuse networks, can help to create a progressive environment. Firms have an important role in investing in the technology, incorporating sustainable materials into product design, and adhering to environmental legislation.

Recycling, as it stands, is an important tool in waste management, but it can never be the sole solution. Society and industry must lower plastic consumption, moving to biodegradable options, and improving reuse systems. This will address the constraints and provide proactive measures. Integrating these solutions with enhanced recycling technology will be necessary.

Tech developments are transforming the sector, with cutting-edge innovations to pave the way forward.

Chemical Recycling

Chemical recycling breaks polymers down into their constituent monomers, which may then be repurposed to generate new plastics of the original quality. This solves some of mechanical recycling's major shortcomings. Companies such as Agilyx and Plastic Energy are creating chemical techniques to handle a broader range of materials, including some that were previously considered non-recyclable.

AI and Robotics

Advanced sorting systems employ artificial intelligence  to identify and classify types of plastics with speed and precision. Companies like AMP Robotics and ZenRobotics are leading the way with machine-learning algorithms to enhance efficiency and accuracy.

Enzymatic Breakdown

There exist enzymes specifically designed to degrade PET into its fundamental components. This enzymatic technique, pioneered by firms such as Carbios, is sustainable, because it uses lower temperatures and less energy than other recycling methods.

Blockchain Traceability

Distributed-ledger tech can improve the traceability of recyclable materials. Blockchain has the ability to increase consumer confidence in recycled products while streamlining regulatory compliance.

The sector is on the verge of a long-awaited revolution, with developments that have the potential to reshape the very concept of recycling. They offer a ray of hope.

But recycling efficacy is governed by more than just technology or plastics' inherent qualities. It is influenced by government policy and consumer behaviour, both of which have a significant impact on outcomes.

Influential Policies

Government policies play an important role. Recycling rates can be greatly increased by enforcing regulations, levying garbage-disposal costs, and subsidising infrastructure. The EU's waste management directives have established aggressive targets for member states.

Extended producer responsibility (EPR) is another policy measure with great potential. By holding producers accountable for the lifecycle of their products, EPR encourages the design of items that are easier to recycle, and to contribute financially to the process. Germany and Sweden have effectively implemented EPR systems.

Cultural Shifts

Consumer behaviour has a direct impact. Educating customers on the value of recycling, and how to recycle properly, can reduce contamination rates. Public awareness campaigns, unambiguous labelling, and community-based programmes can help.

Consumer demand for recycled products has the potential to influence transformation. When consumers prioritise sustainability, it generates economic incentives for businesses to invest in recycling technology. This demand-driven approach can boost the effectiveness of initiatives.

Synergy of Policies and Actions

The most effective recycling systems are linked with sustainability objectives; South Korea combines stringent rules with public participation. This increases recycling rates and promotes a culture of responsibility.

Effective policies provide the necessary framework and incentives for systemic change, while conscientious consumer behaviour ensures the smooth running of these systems. Together, they convert recycling from a last option to a vital component of a circular economy.

The Outlook

The constraints facing the recycling sector, which range from technical restrictions to economic and behavioural concerns, underline the need for a holistic approach – and viable alternatives.

Innovations such as chemical recycling and AI sorting systems are promising, but they will require major investment and widespread implementation. Reducing plastic use, adopting biodegradable materials, and developing effective reuse systems provide feasible solutions.

Catalysts for Change

Governments must continue to enact and enforce legislation. The fight against plastic pollution will require a diverse approach:

Continuous development of recycling technologies and materials science, with support for R&D.

Improved regulatory measures, such as global collaboration on waste-management standards, could provide uniformity and ensure compliance.

Cultural and behavioural shifts are needed for long-term advances. Making sustainability a priority is the way ahead.

Businesses must take greater responsibility by designing recyclable products and using alternative materials.

All Together Now

To catalyse genuine change, all stakeholders must work towards a common objective: embracing innovation, implementing and expanding regulation, transforming cultural norms, and promoting corporate accountability.

The path to effective waste management is long, complex, and arduous. But it is well within our grasp. It is evident, however, that recycling alone is insufficient to address the problem. We need a move to biodegradable polymers, and improved reuse networks; a comprehensive approach to minimising our environmental impact.

The Role of Policy

Government policies that promote recycling, penalise waste, and require producer responsibility are vital. Simultaneous education and encouragement can result in considerable change.

Harmonised worldwide legislation can boost recycling rates and promote greener alternatives, while local initiatives can address specific community requirements.

Creating a culture that prioritises sustainability over convenience is crucial for shifting consumer habits. Businesses must implement sustainable practices, from product design to end-of-life recovery.

To achieve long-term environmental change, all sectors of society must work together. Each actor is critical to crafting a sustainable future.


Otaviano Canuto: The Global War of Subsidies

US bids to limit tech imports and exports send a message of frustration and fear.

Prior to her visit to China on April 4 — her second in nine months — Janet Yellen, US Secretary of the Treasury, sent a message demanding that the country not flood the world with cheap exports of clean energy.

That would “distort global markets and harm workers abroad”, she said. Yellen is not the only official from other major economies who has referred to a potential deluge of Chinese products.

China’s excess industrial capacity, and the government support that has fuelled it, were the subject of discussion during Yellen’s meeting with Chinese Premier Li Qiang.

Current levels of idle capacity and consumer restraint are some of the challenges China must address. Exports may be the way to address domestic demand issues, and the world monitors the Chinese exchange rate for signs of devaluation.

Xi Jinping has referred to clean energy and other tech sectors as the primary path to prosperity. China is ahead of the US and Europe when it comes to clean energy. Little wonder, then, that American and European officials make frequent reference to Chinese exports and subsidies.

Large-scale subsidies have proliferated in a race to subsidise strategic sectors. In response, the US has put its own subsidies in place for the local manufacture of clean-energy and semiconductor products. Volkswagen called this “a gold rush” when announcing a decision to build an electric vehicle (EV) factory in South Carolina.

On the basis that it is supporting investments to combat climate change and reduce healthcare costs, US subsidies take the form of tax incentives, grants, and loan guarantees to bolster domestic manufacturing. While many are available for investment in countries with which the US has free-trade agreements, their scope and value are lower than those available to companies in-country.

The CHIPS Act aims to revive the local semiconductor industry. The US leads the sector in terms of core technology and equipment, but mass production of occurs mostly in Taiwan, South Korea, Japan, and the Netherlands. The law aims to reduce dependence on Taiwan in the event of a crisis there. Expenditures on the Inflation Reduction Act (IRA) alone are expected to reach $1.2tn.

The EU has expressed almost immediate concern about the Act, with protests focused on strengthening US domestic production. European Commission president Ursula von der Leyen called for the establishment of an EU Sovereignty Fund (ESF) to directly combat the effects of the IRA.

The EU needed to consider “how our so-called 'like-minded partners' are proceeding in the ongoing industrial and technological race”, she said. Rules that limit national government subsidies to industry have been adjusted. Member-state governments can match subsidies offered outside the EU if there is a risk of a project of “strategic importance” being relocated.

The EU is obviously concerned about China and the penetration of its EV industry – and a production facility has been announced in Hungary. Declarations of intent have been made to establish trade restrictions in response to Chinese subsidies.

South Korea and Japan have their own responses to subsidies. South Korea, after describing incentives for EVs and batteries manufactured in the US as “a betrayal”, received updated guidance on the IRA from the US Treasury. Japan obtained a similar agreement, qualifying its EV batteries and components for IRA incentives.

Major battery and semiconductor companies in both countries are planning new factories in America to ensure receipt of the subsidies. Local content requirements under the IRA become more stringent over time. Both the South Koreans and the Japanese say that US subsidies pose a threat to their domestic industries. Both pursue a dual strategy covering incentives available under the IRA, while implementing their own policies to protect key sectors.

Even Australia, which has a free-trade agreement with the US and little in the way of industry to protect, has decided to enact a subsidy programme to bolster critical mineral processing, which is considered strategically significant.

Judging by announcements and initial investments, the effect of incentives on US supply chains has been intense. Mexico, a beneficiary of the IRA, replaced China as the largest exporter to the US last year. That was a first time since 2006 that China has not been top dog. A realignment of global trade is under way.

Any cost-benefit evaluation of these subsidy programmes faces difficulty: the desired results are not optimal in economic terms. There is a risk that countries, especially the US and China, will adopt increasingly broad definitions of what constitutes a “strategic” sector.

This could trigger fresh global subsidy wars. For countries with no fiscal space to compete in cutting-edge sectors, this is bad news.

This story was originally published in Policy Centre for the New South.


Economy has ‘Turned a Corner’ as UK Emerges from Recession

The UK economy has emerged from a recession fuelled by stronger-than-expected growth between January and March, according to official figures from the Office of National Statistics (ONS).

Having fallen into a mild recession at the end of last year, with the economy contracting for two consecutive three-month periods, the economy grew by 0.6 percent in first quarter.

It was the strongest quarterly rate of growth since the end of 2021, outperforming economists’ expectations of 0.4 percent growth.

The growth was spearheaded by the services sector which has boomed since the start of 2024 with wages outstripping inflation to ease the pressures on consumers.

Liz McKeown, director of economic statistics at the ONS, attributed growth to the “broad-based strength across the service industries with retail, public transport and haulage, and health all performing well.”

On Thursday, the Bank of England froze interest rates at 5.25 percent for the sixth time in a row, but indicated that cuts could begin again in June.

Derek Mackenzie, CEO of Investigo, part of The IN Group, said: “Teetering on the edge of recession has taken a toll on UK businesses. Economic uncertainty has impacted investment and critical business decisions, resulting in short versus long-term planning. But with green shoots now appearing, boardrooms can plan for a more stable future and focus on key areas such as technology to lead growth. Those that align their business and technology strategies, fuelled by investment, will be best placed once the economy surges.

“In fact, four in five boardrooms are gearing up for technology investment over the next 12 months, with 78 percent focused on automation to cut costs and drive efficiencies according to our Tech and the Boardroom report. Technology isn’t slowing down for anyone, so it’s important that technology transformation is led from the C-suite and that they understand the power that automation can bring to catapult operational efficiency.”


Goldin Girl: Putting Women’s Rights on a Level Footing

Claudia Goldin is a champion of economic equality for both genders…

Claudia Goldin's name evokes an unshakable commitment to increasing our understanding of gender equality in the workplace.

[caption id="attachment_26805" align="aligncenter" width="900"] Claudia Goldin[/caption]

This distinguished American economic historian, born in 1946 in the Bronx, New York, dedicated her career to shedding light on the varied historical and current restrictions on women's economic engagement.

Goldin's intellectual journey led her to Cornell University, where she discovered an interest in economics. Following her Bachelor’s degree, she went to the University of Chicago, where she received a Master's and a Doctorate in economics. She developed a strong interest in labour economics – and the changing role of women in the workplace.

After completing her PhD, Goldin pursued a career that included teaching and research. She earned professorial positions at Princeton University and the University of Pennsylvania, and joined Harvard University in 1990 as the first woman to be granted tenure in the economics department.

Goldin's research dug into the complexity of women's historical position in the job market. Her research methodically documents their increased workforce involvement, as well as the long-standing obstacles they face.

In her book Understanding the Gender Gap: An Economic History of American Women, Goldin investigates how advances in technology, education, social standards, and public regulations have altered female job opportunities. She explains how the intricate intersections of job and family life influence the female labour force.

Goldin holds that the modern gender gap must be viewed through a historical lens. By examining women's economic advancement over time, she exposes the interaction of social and economic forces and patterns that continue to impact the current landscape.

Her study, which focuses on the US, demonstrates the considerable economic achievements that have been made, particularly in the latter half of the 20th Century, while acknowledging the difficulties and limits that persist. Her work calls into question the idea of a straight path to equality, showing persistent barriers that women must confront.

One of the major contributions Goldin has made to economic debate is the concept of flexibility. She observes that many occupations are designed to disfavour women who have caring obligations. Her work advocates for a rethinking workplace practices, with more flexibility and fewer regulations.

Goldin is a prolific writer, having written numerous books, essays, and articles. Her scholarly contributions have earned her a number of awards and honours, including the IZA Prize in Labour Economics, the BBVA Foundation Frontiers of Knowledge Award in Economics, and the Society of Labour Economists' Mincer Award for lifetime contributions. Her election as president of the American Economic Association in 2013 cemented her position as one of the world’s leading economists.

Goldin received the Nobel Memorial Prize in Economic Sciences in October 2023, the third woman to receive it – but the first to receive this it “alone”.

Claudia Goldin's legacy will go beyond her specific contributions to the subject of economics. She has inspired generations of aspiring economists, especially women, by demonstrating the power of intellectual rigour – and the importance of applying economic analysis to social challenges.


Cement Recycling: a Breakthrough for More Sustainable Construction

Reuse and recycle — it makes sense, even in the most basic steps of the building trade…

The global construction industry is a major contributor to carbon emissions, but it’s facing up to its responsibilities.

Recent British breakthroughs are revolutionising the industry, particularly the innovative solution of cement recycling, a process that aligns with the principles of a circular economy.

Concrete — to state the obvious — is the world's most widely used construction material. And like so many others, it comes with an environmental cost. Cement production accounts for a staggering eight percent of global carbon dioxide emissions, leaving aside the gathering of gravel, sand and other raw materials. One of them, limestone, is responsible for the serious degradation of natural ecosystems.

Enter the brainwave of cement recycling — reusing detritus from demolished buildings. The practice drastically cuts the demand for production, curbing greenhouse gas emissions.

The UK is at the forefront of the innovation, and is pioneering technologies to transform the industry. Carbon dioxide can be captured from waste gases and combined with concrete rubble to create building aggregate. That generates carbon credits and provides a financial incentive — always a good thing for new sustainable practices.

Electric Arc Furnaces

Another UK-led breakthrough is the adaptation of electric arc furnaces (EAFs) to recycle cement. Traditionally used in steelmaking, EAFs are being employed to process concrete rubble, melting scrap metal and recycled concrete. The aggregates are separated, and the recovered paste can be used in new concrete mixes.

EAFs bring down carbon footprints, as they are more energy-efficient than traditional kilns. Air pollution is lower, too — and as a bonus, EAFs can recover valuable metals from scrap, further promoting a circular economy.

The furnaces are operationally flexible, allowing for smaller batches of cement to be made, and can churn out other recycled materials.

Challenges Ahead…?

While the potential is immense, challenges to cement recycling exist. The development of standardised quality-control measures and the optimisation of processes are areas that require ongoing R&D.

But already, things look promising. Environmental awareness is a top priority for corporations, authorities and individuals, and government incentives are driving recycling. The integration of innovative technologies such as these is expected to accelerate the adoption of environmentally friendly processes.

Cement recycling seems to have a solid future ahead of it.


To Get Ahead, Get a Head with a Heart

Behind every go-ahead company is a go-ahead personality – and in the case of Square Asset Management, that person is Pedro Coelho.

[caption id="attachment_26828" align="aligncenter" width="900"] CEO: Pedro Coelho[/caption]

The CEO and founder of this firm heads a 70-person team dedicated to consistent performance for its clients – with a low-risk/return framework. This aim is pursued through meticulous selection of real estate assets without financial leverage.

Lisbon-based Coelho is committed to fostering innovation and cultural growth, with a penchant for positivity and high regard for his colleagues. Add to that an unwavering adherence to high standards of values, business ethics, and environmental consciousness and you have the profile of a leader.

With over 35 years of experience in the financial industry, mainly in real-estate asset management and finance, Coelho earned an accounting degree from ISCAL in 1986. Before Square AM, he held senior positions at ESAF Asset Management and served as Head of Planning at Barclays Bank, Portugal. From 2001 to 2004, he taught the MBA programme at Escola Superior de Actividades Imobiliárias in Portugal.

The CEO sees challenges, whether in the boardroom or on the volleyball court (where he coaches), as part of life. "As in life,” he says, “sometimes you just have to throw the ball and see where it goes."

Under his leadership, the firm has gone from zero to €1bn in AUM in open-ended real estate funds – not once, but twice, in separate institutions.

Square AM focus remains steadfast on client performance, primarily through real estate open-ended funds, while continuously advancing ESG initiatives, positioning the company as a national and regional leader in real estate fund-management.

Square is anchored in long-term lease contracts, with the absence of financial leverage, and robust risk-control.

Reflecting on his journey, he says: "I have always been driven by challenges and client returns, so being the CEO of Square AM is a tremendous motivation and an enduring reward."

Square AM has pledged support for the United Nations Sustainable Development Goals and is a participant of the UN Global Compact Network.


The Man Driving the Rio Tinto Bus: Meet Jakob Stausholm

Rio Tinto chief executive Jakob Stausholm is steering this mining giant as it rolls towards sustainability.

[caption id="attachment_26831" align="aligncenter" width="900"] CEO: Jakob Stausholm[/caption]

Since taking over as CEO in January 2021, Stausholm has led the company through hills and valleys of transition, aiming always for environmental responsibility, social engagement, and sustainable growth. During his tenure, he has rebuilt trust in the industry, cut carbon emissions, and cultivated a more inclusive and ethical company culture.

Stausholm's appointment came in the aftermath of the Juukan Gorge disaster, in which Rio Tinto destroyed ancient Aboriginal rock dwellings, sparking public outcry and damaging the company's brand. Recognising the gravity of the situation, Stausholm prioritised the re-establishment of confidence with indigenous communities and stakeholders. He launched an open conversation, apologising for the company's blunder and pledging a thorough evaluation of management standards on cultural heritage.

"Stausholm has kept sharp focus on creating an inclusive and ethical workplace. He promotes open communication, diversity and respect at all levels to keep employees — as well as stakeholders and communities — feeling appreciated and empowered."

Stausholm has had his work cut out to re-establish Rio Tinto's social licence to operate; he advanced by emphasising cultural sensitivity and community participation. He has managed to foster a collaborative relationship with the affected communities.

Stausholm is an advocate of environmental stewardship, and recognises the importance of addressing the industry's impact. Rio Tinto’s ambitious carbon-reduction targets were established under his leadership, and he is holding onto that goal of reaching net-zero by 2050.

To minimise environmental damage, the corporation is putting its faith in renewable energy, electrifying its vehicle fleet and researching appropriate technologies. This commitment has been consistent with the worldwide call for climate action — and has established Rio Tinto as a leader in the field.

Stausholm prioritises operational excellence along with environmental and social considerations. He has launched a review of the company portfolio, divesting non-core assets and investing in initiatives aligned with long-term strategy.
The CEO aims to improve financial performance and provide shareholders with long-term value by streamlining operations and focusing on high-value projects. He has also emphasised the importance of investment in R&D.

Stausholm has kept sharp focus on creating an inclusive and ethical workplace. He promotes open communication, diversity and respect at all levels to keep employees — as well as stakeholders and communities — feeling appreciated and empowered. Rio Tinto is becoming a responsible corporate citizen by putting proper value on employee wellbeing and developing an integrity-driven culture.

The firm has made tremendous progress under Stausholm — but still has problems to confront. The sector operates in a tangled web of stakeholders and regulatory regimes. Balancing environmental stewardship with economic prosperity is an ongoing challenge.

The industry's unavoidable and direct effect on the environment demands continual attention. Stausholm sees Rio Tinto as a pioneer, contributing to a low-carbon future while keeping eyes on the prize of long-term value for shareholders and communities. His emphasis on trust, carbon cutting, operational excellence and cultural sensitivity has set the organisation on a new path.

As Rio Tinto navigates the upcoming challenges of the global energy transition, Stausholm's steady hand will be critical to its success, and its contribution to a sustainable future.


The Role of the Chief Artificial Intelligence Officer (CAIO)

Embracing The Decade of Productivity

As we usher in the "decade of productivity" driven by advancements in artificial intelligence (AI), organisations face an imperative to accelerate their transformation journeys. The Chief Artificial Intelligence Officer (CAIO) emerges as a pivotal leader in this era, steering the enterprise through the complexities of AI integration and unlocking unprecedented levels of efficiency and innovation.

[caption id="attachment_26835" align="aligncenter" width="900"] Author: Bashar Kilani[/caption]

Leadership on Culture & People: Becoming an AI-First Organisation

One of the primary responsibilities of the CAIO is fostering a culture that embraces AI, promoting continuous learning and adaptation. This cultural shift is essential for organisations aiming to become AI-first. A focus on people is crucial; employees must understand and leverage AI tools to enhance their productivity and creativity. The CAIO should lead initiatives to reskill and upskill the workforce, aligning human talent with AI-driven opportunities. This involves not only training programs but also creating an environment where innovation is encouraged and AI solutions are readily adopted.

Accelerating the AI Transformation: The Path to Productivity

The CAIO is responsible for crafting and executing a robust AI strategy that aligns with organisational goals. This involves identifying processes for AI automation, areas where AI can augment human capabilities, and tasks AI can autonomously execute. Strategic foresight is needed to select and prioritise AI projects that deliver the highest impact. Navigating emerging cost and value dynamics is another critical aspect. A comprehensive understanding of the new cost structures introduced by AI technologies is vital. The CAIO must develop and communicate value creation models that illustrate how AI investments lead to tangible business outcomes. Balancing cost-efficiency with strategic investments in AI will drive sustainable growth, ensuring the organisation stays competitive in the rapidly evolving landscape.

Championing Responsible AI: Balancing Technology Advancements with Human Values

In the realm of AI, understanding and mitigating risks is paramount. The CAIO must oversee AI initiatives to ensure outputs are explainable, bias-free, and respectful of privacy and data policies. This involves rigorous oversight and adherence to ethical standards, ensuring AI applications are trustworthy and aligned with human values. Awareness and compliance with responsible AI legal frameworks from the United Nations, EU, and various U.S. bodies are crucial to maintaining regulatory alignment and public trust. The CAIO must stay abreast of these regulations and ensure the organisation's AI initiatives comply with them, fostering a reputation for ethical AI use.

In Conclusion: A Catalyst for Transitioning from the “Industrial Revolution” to the “Intelligence Revolution”

As humanity transitions from the industrial revolution to the intelligence revolution, the role of the Chief AI Officer (CAIO) is pivotal. This era, marked by AI integration into all facets of business and society, demands the CAIO's leadership to drive innovation and efficiency. The CAIO is crucial in fostering an AI-centric culture, managing risks, and ensuring ethical AI practices. They must balance technological advances with human values, ensuring AI augments human capabilities and operates transparently. The CAIO is not just a leader in technology but a catalyst for a broader transformation, guiding organisations through the profound changes brought by AI and ensuring these advancements benefit both the enterprise and society at large.

About the Author

Bashar Kilani
Digital Economy Advocate

Founder of AI360 Innovations, an advisory firm for the digital economy based in Dubai’s AI Campus. Bashar held leadership positions at Accenture & IBM in addition to several prestigious advisory Board Memberships focusing on the digital economy, responsible use of technology and accelerating sustainable transformation.


China's Economic Growth is On-Target Despite Challenges

The IMF World Economic Outlook recently released a projection of China's economic growth of 4.6 percent and 4.1 percent for this year and next.

In 2023, after the economic reopening with the end of the “Covid-zero” policy, the rate was 5.2 percent, above the official target of five (Figure 1).

This year, the official target has again been set at five percent. The challenges approached here notwithstanding, the macro-economic performance in the first quarter of 2024 has been in sync with such a target.

Six challenges can be identified for China’s economic growth.

"Two reforms would have a strong effect on growth. First, reinforce social protection in order to convince Chinese people to save less. Then resume the proposal made by Hu Jintao in 2011 – left aside by Xi Jinping – to rebalance public and private companies, with a gain in productivity."

First, the exhaustion of the real estate sector, after having reached a quarter of the country's GDP. The restrictions placed in 2021 on developers' access to cheap credit, due to concerns about the real estate bubble, cut the boom, but also exposed the fragility of developers' assets, as seen in the case of Evergrande. Since then, there has been a sharp drop in home sales, new construction, and investment (figure 2).

The debt of local governments is another problem, because revenues from the sale of land to developers have shrunk. The degree of exposure of Chinese banks to both, with possible consequences in terms of loan losses, could negatively affect the supply of credit.

A problem with domestic demand by families represents a third challenge for growth. Chinese families took on heavy debt to buy real estate during the boom, and spending cuts accompanied the turbulence. Even though it increased last year, consumption remains on a trajectory below that before the pandemic (figure 3, left side). Measures of consumer confidence point to this.

Private investments for the domestic market, as well as hiring, accompanied this retraction. While investment in manufacturing kept pace, it slowed in real estate and infrastructure (Figure 3, right side).

A fourth challenge lies in external resistance to such an increase in exports as an alternative, given that they now face geopolitical rivalry, especially in the US. Much talk has been given to a “second shock” in terms of Chinese exports, particularly because of the size of the figures.

The Chinese lead in clean-energy tech has been accompanied by expansion in sales of electric cars (EVs). Chinese EV exports have surpassed Japan's, and Chinese companies are seeking to strengthen positions abroad: BYD in Brazil, Hungary, and elsewhere.
But the risks of facing additional market access restrictions are high.

A fifth challenge concerns the radical change in the mood of foreign investors. Since the third quarter of 2023, China's balance of payments has recorded a net outflow of almost $12bn in direct investment, due to asset sales or non-reinvestment of profits. Portfolio investments, shares and debt securities also changed signs.

The insufficiency of aggregate demand in China has been manifesting itself in the form of domestic deflation. Consumer prices have been stable or falling for months and companies have been reducing prices for more than a year (Figure 4 – left side). Idle capacity is high in many sectors, reflecting the excess investments relative to levels of demand (Figure 4 – right side).

Demography constitutes yet another challenge. The increase in the supply of workers accompanying rapid urbanisation has reached its limit. The ongoing population decline, with a growing share of the population out of the job market, means – as in many other parts of the world – the end of the demographic dividend (Figure 5).

The high youth unemployment rate provides a source of work to be employed, but this does not change the direction on the issue of the proportion of Chinese people of non-productive age.

To understand how the first four challenges intertwine, it’s worth going back to the beginning of the last decade.

In December 2011, then-president Hu Jintao made one of the first statements about the need for a “rebalancing” of the Chinese economy. There would have to be a gradual redirection towards a new growth pattern, no longer associated with investment rates close to 50 percent of GDP and with domestic consumption increasing in relation to investments and exports.

An effort would be needed to consolidate local insertion in the highest rungs of the added-value ladder in global value chains. Services should also increase their weight in GDP in relation to manufacturing. There would no longer be the double-digit GDP growth rates of previous decades, but it would no longer be unstable.

Given the low level of domestic consumption in GDP, and the dependence on investments and trade balances, the transition would run the risk of experiencing an abrupt drop in growth. To allay fears, waves of credit-driven over-investment in infrastructure and housing followed. A second round was implemented in 2015–2017 in response to a housing slowdown and stock market decline. In addition to the expansion policies adopted during the pandemic crisis in 2020, of course.

The decline in Chinese GDP growth rates was six percent in 2019. Now, however, the lever of over-investment in real estate and infrastructure is running out. Not only because of the debt levels, but also because returns in terms of GDP growth were declining.

Two reforms would have a strong effect on growth. First, reinforce social protection in order to convince Chinese people to save less. Then resume the proposal made by Hu Jintao in 2011 – left aside by Xi Jinping – to rebalance public and private companies, with a gain in productivity.

Such reforms do not seem to be on the front line. Despite the challenges, China’s economic growth path remained steady in the first quarter of the year. Exports, manufacturing investment and travel-related consumer spending compensated for the drag from the property sector (Figure 5), so far lifting the chances of achieving the target of “around five percent” GDP growth this year.

About the Author

[caption id="attachment_26574" align="aligncenter" width="300"] Author: Otaviano Canuto[/caption]

Otaviano Canuto, based in Washington, D.C, is a former vice president and a former executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development. Otaviano has been a regular columnist for CFI.co for the past 12 years. X: @ocanuto

Originally published at Policy Center for the New South.


Avoid the Sucker-Punch of Online Scammers — Keep Your Guard Up!

Experts reveal how businesses and sellers can spot online payment fraud.

When it comes to e-commerce, shoppers aren’t the only ones vulnerable to scams. Businesses and sellers are targets, too — so know thy enemy, whoever you are.

Anyone involved with online sales and purchases should arm themselves as well as possible to avoid falling victim to the multitude of scams out there on the big, bad internet. Find out as much as you can about prevalent scams — and about what to do should your protections fail.

According to US news organisation Business Wire, there was a 71 percent increase in payment fraud attempts on American firms in 2023. That statistic alone should add weight to the cautions listed here.

Dennis Pederson, CEO of merchant account processor PayFasto, has compiled a list of common scams that online shoppers, traders or sellers should be aware of.

Phishing Scams

Despite the spelling, this involves bait and a hook. Criminals try to trick people into sharing sensitive information, such as credit card details and passwords. They typically do this by sending fake texts or emails which redirect to a phony — but apparently legitimate — third-party website. Just click on the link, and your personal information is suddenly available to bad actors.

Phishing isn’t only aimed at customers; the privacy and security of businesses and stakeholders are equally open to compromise. Financial and data losses spark fear in the heart of the public, and trust in the company can be lost. A damaged reputation can be as harmful as any actual monetary loss.

Happily, there are some obvious red flags to look out for, and regular training can help employees to keep their guard up. Unexpected requests for personal information, spelling and grammar errors, unknown senders, and attempts to inject a sense of threat or urgency are all giveaways. Simple rule: avoid clicking any unfamiliar website and never download any unexpected attachments.

There are less obvious, more devious methods employed, and technical measures can help to reduce the risk: email filtering tools and thorough assessment of third-party communications are a good start. It makes sense to limit access to sensitive data via multi-factor authentication — and to keep digital systems and software defences up-to-date.

Chargeback Fraud

Also known as friendly fraud, this is when an apparently legitimate customer makes a credit card purchase and then disputes the charge with their bank. They request a refund, claiming that they did not receive the item or that the payment was unauthorised.

True fraud, when transactions are made using stolen personal information, is a trickier business. The legitimate cardholder files a chargeback for the unauthorised purchase. These scams can be ruinous to vendors, who must pick up much of the loss should a bank side with the customer.

Good communication is key to preventing “friendly” fraud. It’s vital that online businesses include merchant names and transaction details in banking apps to avoid confusion. Ensure that email confirmations are promptly sent out after purchases are made.

Sellers should enable package-tracking and delivery updates to ensure proof that the goods have been received. Good customer service and transparency about any delays can nip problems in the bud. Two-factor authentication for payments, and the verification of any suspiciously large purchases, should be made before shipping.

Send it Back…?

Return fraud occurs when a dodgy customer attempts to get a refund by manipulating the seller’s refund policy. This might involve returning a different item than the one received, claiming that it was defective or damaged. This, needless to say, is illegal. But it sometimes works…

Scammers might even use the ordered items — a high-end camera for use on holiday, or an expensive dress to wear to a wedding — then return them as “unused”, flouting the terms and conditions of the returns policy.

To lower the chances of this situation, vendors should develop clear, non-negotiable return policies — and abide by them. Items returned in anything other than original condition — including all labels and documentation —  should be flagged, and the refund refused. Strict checks should be implemented: Is it the correct item? Is it in perfect condition? Do delivery tracking records confirm claims that orders were lost? Transactions should be monitored for any unusual or suspicious patterns.

Merchants of Menace

Merchant fraud is when scammers pose as genuine businesses to deceive online customers. They might go as far as creating fake websites and online “stores” offering goods at temptingly low prices. They may send out a counterfeit or low-quality product — or none at all. While customers are the direct victims, this can hurt the reputation of legitimate businesses.

Merchant fraud incurs financial losses and other liabilities. There can be legal consequences if it’s determined that proper prevention measures were not taken. If rates of merchant fraud in a particular industry are high, businesses can be hit by higher processing fees due to perceived risk.

Fighting Back

Businesses and sellers can combat all this by taking some basic measures. Ensure that the company name, logo and transaction details appear on bank statements. This goes a long way to distinguishing legitimate purchases from fraudulent ones.

Clear terms and conditions, secure payment methods and multi-factor authentication remain the best safeguards. It’s good practice to stay abreast of emerging fraud patterns, and to deploy top-notch software protection.

Down to the Wire

Wire transfer fraud involves a fraudster deceiving someone into sending money via bank transfer. They may impersonate known and trusted individuals or organisations. Fake invoices urge prompt payment, often playing on emotions and exploiting the pressure workers may already be under. These scenarios, especially since the emergence of widely accessible AI technology, can be very convincing. In this case, money is transferred instantly — and getting it back can be a real challenge. Sellers should to contact their bank as soon as a problem is flagged — ideally before the transaction has been completed.

Prevention is better than cure, and as a general rule, it’s a bad idea to send money in an unplanned, unexpected manner. Transactions should always be approved by more than one person, as a failsafe.

Businesses and employees should avoid sharing private company information, and improving cybersecurity protocols is an effective countermeasure. As always, use strong passwords, closely guard banking details, and enforce multi-factor authentication when logging into a company’s network.

Sellers, shoppers and employees must remain on their guard, and remind themselves not to ignore any suspicious requests for money. If in doubt, get a second opinion and confirm the validity of a request before fulfilling it.

More information:

https://payfasto.com/high-risk-merchant-account/


João Pedro Oliveira e Costa: Banco BPI’s Compassionate Touch

The CEO of the Portuguese bank, João Pedro Oliveira e Costa, puts human values at the centre of all operations — but values AI’s contribution, too.

A company, according to the Banco BPI philosophy, is like a person, with its own identity and character, defined by its principles, actions, and objectives.

[caption id="attachment_26849" align="aligncenter" width="900"] CEO: João Pedro Oliveira e Costa[/caption]

The Porto-based institution’s identity has been formed around the central financial and corporate culture of Banco Português de Investimento. Holding the centre are essential features such as managerial independence, organisational flexibility, teamwork, the recognition of merit, forward thinking, rigorous risk management and secure value creation.

At the nexus of all this, and pulling these vital threads together, is BPI’s chief executive officer, João Pedro Oliveira e Costa, 58. His priorities are those of the bank itself: excellence in management and services, the protection of customer and client interests, as well as dedication, loyalty, and discretion.

The CEO is a member of the executive committee of the board of directors. Before his appointment to the top job in 2020 — at the start of the Covid-19 pandemic — he was responsible for the individuals and businesses section. With 33 years of experience at Grupo BPI (now Grupo CaixaBank), he led private banking and investment-centre positions.

He also held the post of non-executive director of Companhia de Seguros Allianz Portugal, and of Sociedade Gestora BPI (Suisse).

Leadership Style

With an easy-going manner and a ready smile, Oliveira e Costa is a leader with a capacity for taking the initiative. He recognises the value of teamwork, and despite his personal convictions he retains the flexibility to adapt to circumstances and change a decision should the evidence point him in that direction.

The launch the bank's private banking service took place in 1992. Today, BPI is the national leader of the private banking sector in Portugal. During the CEO’s tenure as board member, he has been responsible for retail business. “I love working with people,” he says, “and I have been able to meet, in person, thousands of employees in our branches across the country.”

That gave him what he calls “an incredible insight into the business” — and into the country itself. “I met extraordinary people who were the real driving force of the business.”

Social Responsibility

BPI has one of the largest corporate volunteering programmes in Portugal. Created during the CEO’s initial mandate, it gives current and former employees the chance to support charitable projects, voluntarily contributing their personal and professional skills for worthy causes. Three of every four of the bank's employees are registered on the volunteering platform and participate in hundreds initiatives, ranging from mentoring young people at risk of social exclusion to supporting refugees and collecting food for citizens in dire need.

Future of Banking

BPI makes regular and significant investments in technology. “Given the growing importance of AI and innovation in financial services,” says Oliveira e Costa, “at the beginning of 2022 we created two competence centres focused on bringing new capabilities and technologies to these areas. These boosted evolution and integration throughout the bank.

“We’re getting closer to what we call the ‘omnichannel model’, in which the customer has at their disposal a service platform common to all available channels, remote and face-to-face, supported by AI and other technologies.”

Artificial intelligence makes it possible to better understand customers' needs and preferences, the channels they prefer to use, and the best times and contexts for making contact.

As far as personalisation is concerned, AI makes it possible to greatly improve customer service. “Instead of communicating in a ‘forced’ way, displaying all the products and services available to the bank all the time, it makes it possible to understand specific client needs.”

All the technological and transformational dimensions are aligned with BPI philosophy, and focused on people. The ultimate aim is to intensify relationships with customers and increase employee empowerment. “This generates a wealth of information that justifies the use of AI,” says Oliveira e Costa, “a structural investment for business development.”


Living the Iberian Dream, Fair and Square: A Risk-Control Real Estate Asset Management Firm

Square Asset Management has history behind it, and big plans for the future.

Square Asset Management has celebrated its 18th year of sustained growth – and it’s clear that company’s steadfast commitment has contributed to that success.

[caption id="attachment_26852" align="aligncenter" width="900"] View from Square AM offices[/caption]

Commitment to proper ESG policies, of course, but personal commitment, too. CEO and founder Pedro Coelho says that most of the team members have been working together for around 35 years.

Square Asset Management is Portugal’s largest independent real-estate asset manager, with more than €1.9bn in AUM. Square Asset Management (in Portuguese, Sociedade Gestora de Organismos de Investimento Coletivo) is regulated by the Portuguese Securities Stock Commission (CMVM), considered as an AIFM.

"With specific expertise in all aspects of real estate – management, development, law, and banking – Square AM’s management team has the knowledge and reassurance that comes with decades of experience."

With specific expertise in all aspects of real estate – management, development, law, and banking – Square AM’s management team has the knowledge and reassurance that comes with decades of experience.

Square focuses on client needs and performance, primarily via open-ended funds, prioritising investment in diversified Iberian real estate assets. It has long-term lease contracts across sectors – with ESG front-and-centre – positioning Square as a leading real estate fund manager on the Iberian Peninsula.

Square pioneered a low-risk investment strategy, anchored on long-term lease contracts, absent of financial leverage, and with robust risk-control. Against the age-old real estate cry of "location, location, location", Square replies with an ethos revolving around "risk, risk, risk". Look at the firm’s 18-year streak without negative performance for confirmation.

Square AM manages several real estate funds and consultancy services, including income funds: the management of risk/return on core and core plus assets, especially in office, retail, logistics, distribution. That includes two open-ended real estate funds, CA Património Crescente (CA PC) with €1.2m in AUM, and the Property Core Real Estate Fund, recently launched for institutional and retail clients (€60m AUM).

Distressed Asset Funds

Square AM also undertakes the long-term management of non-core assets, with the aim of increasing their market value and selling them on.

With specialised funds, there is tailored management of thematic assets with the aim of optimising market value and performance.

Square AM oversees other funds covering health and hospital, supermarkets, shopping centres and hotels, diverse sectors within the Iberian market.

Consultancy and Services

Square AM partners with institutional investors to assist the management of their investments, either through an investment fund or another specific solution.

CA Património Crescente Fund

This flagship, open-ended fund – recognised by MSCI for 13 consecutive years as the best-performing Iberian/Portuguese balanced portfolio – is a point of pride for the firm. Managed as a balanced fund with solid tenants on long-term leases, it is the largest open-end real estate fund in Iberia. It is also an SFDR – Article 8º.

Looking Ahead

As Square AM charts its trajectory, there's no sign of deceleration. Continuously expanding in assets and geographies, the company is poised to penetrate international markets, and ready to reaffirm its commitment to innovation and excellence. i


There’s More to Britain than London: Focus on Regions, Advises Think-Tank

Low investment in the UK’s regional cities is hindering economic growth and the country’s G7 status, report warns.

A lack of investment in regional British cities has hampered economic growth, resulting in lower living standards than in the US, France, or Germany.

That’s according to a report released ahead of the 50th G7 summit in Fasano, southern Italy. The Centre of Cities think-tank found that the primary difference between the UK and its peers was low productivity in cities such as Manchester, Birmingham, Glasgow, Sheffield and Nottingham.

Cities of a similar size outside Paris and Berlin fare far better when measured by output per worker, per hour. Investment is more evenly distributed across the US, too, where cities thrive thanks to targeted financial support and initiatives.

Lyon and Frankfurt rank higher than Birmingham and Manchester by these metrics , affecting the UK's standing among G7 economies. Britain remains a “middle-ranking” country — but is still ahead of Canada, Italy, and Japan in terms of output per hour.

Reaching the Summit

The pre-G7 report said London is “no longer consistent” in terms of source-of-income and wealth for the rest of the country — increasing the vulnerability of regional areas. The British government has been urged to adopt a broader investment strategy to improve digital strengths.

Laura Lodwick, chief of hub operations for development organisation AND Digital said regional investment was vital for national economic prosperity. “Technology, in particular, can open up new opportunities to help distribute wealth and help local communities to thrive,” she said. “A major contributor to the regional gap is that many digitally skilled people move away from their local communities to London to pursue a career. The incoming government, local councils, and regional businesses need a strategy to retain talent."

Digital skills in burgeoning areas such as generative AI play a crucial role in empowerment of citizens, says Lodwick. “Education and local training are important to reskill and upskill the regions. Skills training should form part of retention strategies for local businesses, offering constant opportunities that lead towards career progression.

"Technology has no boundaries, it's not just restricted to London. It's time to show off what the rest of the UK has to offer."


It’s all about the Employees, says Golomt Bank's Odonbaatar Amarzaya

Mongolia’s Golomt Bank knows the value of the people it employs — and the citizens that it works for.

Odonbaatar Amarzaya, deputy CEO of Mongolia’s Golomt Bank, is a man who cares deeply about his country, and his institution’s part in its future.

[caption id="attachment_26860" align="aligncenter" width="900"] Deputy CEO of Golomt Bank: Odonbaatar Amarzaya[/caption]

After nearly three decades of pursuing its mission to deliver cutting-edge banking products and services in Mongolia, Golomt is bringing best practices in digitalisation and sustainability to its corporate and retail customers, as well as its partners.

Employees are at the heart of the organisation. Golomt started its operations with just four staff, but its growth has been exponential. It’s a thoroughly modern operation, with Generation Z making up 33 percent of the workforce, and the remainder comprised of Gen Y and the millennials. “We listen to the youth and follow a soft policy of human resources in accordance with their characteristics,” says Amarzaya.

Within the framework of the employee-centric policy, Golomt Bank aims to create an opportunity for long-term and stable growth of the bank by creating an employee-friendly management system based on high professional ethics, honesty, trust, and a responsible collective culture.

“We have created all the opportunities for our employees to continuously learn and develop,” says Amarzaya. “This will improve their careers, help them to work in teams, share their knowledge, and to be the owners of their professional development.

“We believe that our organisation can survive for a long time by developing, promoting, and increasing the productivity of our employees.”

Developing Together

Golomt Bank received a certificate from the internationally recognised Great Place To Work Institute in 2022 and 2023, becoming the first in the banking and financial sector and the fifth institution in Mongolia to receive the honour.

“That confirms that our corporate culture is on par with the world’s leading organisations,” says a proud Amarzaya. “This is an indication that our ‘employee-centric' human resources policy, organisational culture, and management are being optimally implemented.”


Investing in a Future that has Never Seemed Brighter — a True Pioneer Bank in Mongolia

Staying true to its values and aims has taken Golomt Bank to enviable heights.

[caption id="attachment_26862" align="aligncenter" width="900"] Golomt Bank[/caption]

Golomt Bank was established on 1995 as one of the first commercial banks in Mongolia, with just four employees. Today, it boasts 2,500 staff and 1,000,000 customers, and comprises 20 percent of the country’s banking sector.

That roaring success is largely due to faithful adherence to its motto of “Investing for a brighter future”, and its stated aim to improve the wellbeing of every citizen. Golomt delivers world-class services to businesses, partners, investors, and local and international customers.

Pioneering Financial Inclusion in Mongolia

Golomt Bank has been an integral part of Mongolia’s economic development, supporting and financing ethical businesses, contributing to national development and economic diversification.

The financial institution has been at the forefront of technology-based services, beginning its digital transition in parallel with global development. With AI-based algorithms, it has sparked a digital explosion in the sector. Its customer service has seen it ranked alongside the top banks in South East Asia and Europe.

Despite the country’s size and sparse population, Golomt has brought banking to the masses. The banking sector is a competitive environment, and this is a bank willing to go the extra step.

Global attention is focused on sustainable development goals, and protecting the environment is something the bank takes seriously. Golomt Bank became a member of the UNEP FI Banking Committee in 2017 — one of the 30 signatory members who created Principles for Responsible Banking. Mongolia was one of the first countries to officially address sustainable development — way back in 2013.

That is a lead it intends to nurture. “We want to increase our green finance loans and develop stronger ESG risk-management practices,” says deputy CEO Odonbaatar Amarzaya. “Even though the bank may miss some short-term commercial gains, we will refrain from supporting negative businesses and projects.”

Innovative Banking Solutions for a Modern Economy

Digitalisation is at the forefront of Golomt's Open Bank strategy “The bank avoids projects that have a negative impact on the environment or society. Even though we may miss some short-term commercial profit opportunities, we stick to that policy.”

A study identified the biggest greenhouse gas emission to the transport sector, an obvious starting point. The bank also invested in a boiler replacement scheme cutting emissions by 20 percent or more. Customers investing in facilities and technologies to decarbonise their operations, they can expect to attract more investment.

“We would like to support customers, SMEs and female entrepreneurs,” says Amarzaya. “This increases our social responsibility and makes a significant contribution to the economic cycle.”

That motto — “Investing for a brighter future” — means supporting projects that are eco-friendly, community-friendly, and drive positive change. Golomt Bank is the only signatory from Mongolia to the United Nations Environment Programme Finance Initiative. “As we drive social and sustainability programmes,” says Amarzaya, “our financial future looks bright.”

The Open Bank business model is based on innovation, co-operation, and becoming a partner for customers as they overcome challenges. “Open Bank means that we create new values and contribute to improving citizens’ lives and the country’s development. Sharing our experience, knowledge, and infrastructure will be the main direction of our future.

This leads to the next area of focus: the country’s youth. “Generation Z, the future leaders of Mongolia's economy, have sometimes found it difficult to use traditional banking services,” says Amarzaya. “They want to rely on technology instead of going to a branch or an ATM. Our Open Banking strategy is exactly what they want.”

Another goal is to reduce the bank’s own environmental footprint. Amarzaya notes some key inflection points and milestones. It has proven, since  1995, that a private bank can be successful. “We have been working within the framework of our mission to be the leading bank in Mongolia, co-operate with foreign organisations at the international level, and ensure that Mongolians have access to the best banking products and services.

“We aimed to create these in the first decade of the bank, and the term ‘Pioneer Bank’ became part of our basic philosophy. We were founded when the concept of the private sector was just emerging in Mongolia.

“We were the first to introduce an international payment card system in 1997, and it became the basis of the current banking system. The introduction of Internet banking became the basic payment solution, and Golomt Bank has introduced products and services to accelerate the sector, including technologies and initiatives such as SWIFT, Western Union, and 24-hour banking services.”

The next milestone was one that put Mongolia ahead of the rest of the world. Golomt introduced EMV chip cards in 2008, something that only came to the US in 2011. In 2012, it recognised that mobile phones would play a vital role in payments and services, and the Smart Bank app was introduced.

“A year later, other major banks of Mongolia followed our lead. In this way, Golomt Bank lived up to its title of ‘Pioneer Bank’ — as well as a leading one. It now includes Smart Bank, Digital Bank, Finacle, and SocialPay 3.0, a digital wallet application that is the first in the banking industry and the leading application in the fintech industry.

The third turning point was Golomt Bank’s IPO in 2022. With the Open Bank strategy, it aims to bring new development and business growth.

Most recently, Golomt Bank JSC successfully issued its standalone three-year inaugural $300m bond in the international capital markets in 2024. This marked the return of Mongolian commercial banks’ presence in the international debt capital markets, which had been halted for over a decade. “We think this will set a benchmark to bring more issuers to the global capital market.”

Driving Digital Transformation and Enhanced Governance

Over the past 30 years, Golomt has accumulated knowledge and experience to share openly, providing real support to others. “Mongolia cannot be created by any sector alone, and tight co-operation and efforts between businesses and sectors will make this dream come true,” says the deputy CEO. “We will accelerate the digitalisation by sharing the solutions we have created. All our customers should win, and save time and money overall.

“The vision is not just for banking and financial literacy solutions. Our aim is to provide a digital ecosystem that encompasses sectors such as health, education, and agriculture. Our mission is to drive a collaborative digital economy across the spectrum of Mongolian society. An open bank is fundamentally about driving a culture of digital transformation – with agility, commitment, and imagination.

“It's not just a slogan, it's a strategy embedded in the trust of our employees, managers, directors, and investors.”

Golomt Bank's transition to a publicly listed company has spurred significant enhancements in its governance and transparency. These improvements aim to strengthen investor confidence and public trust. A cornerstone of the enhanced governance structure is the composition of the board of directors. Golomt has not only increased the total number of board members, it has also established one of the most independent decision-making bodies within the Mongolian banking sector. Four of nine board members are independent from controlling shareholders, fostering objective decision-making.

Golomt Bank has adopted an employee-centred strategy, strengthened ethical culture, and created a system providing all employees with opportunities to learn, develop, and challenge themselves.

That’s an investment that truly brings a brighter future.


One Man’s View of the Mountain: UK Urgently Needs to Rejoin EU to Create Economic Security

Both parties are promising growth, but which policies are most likely to generate it?

Growth is essential for continually improving living standards over the long term. However, British politicians fixate on growth for another reason: it ensures the feasibility of their tax-and-spending plans. Both major political parties adhere to a fiscal rule mandating that government debt must decrease as a percentage of GDP between the fourth and fifth year of the forecast period.

In the 1960s, the dominant fear was that France and Germany would soon surpass the UK economy. Today, the concern is that Britain might become poorer per capita than Poland within the next decade!

Unsurprisingly, promises to revive growth are central to the general-election campaign. Prime Minister Rishi Sunak claims the economy is at a crucial turning point and urges voters to "stick with the plan." Labour, which currently seems to be on course for a substantial majority on July 4th, says it will prioritise economic growth if it comes to power, with Shadow Chancellor Rachel Reeves committing to lead the most "pro-growth, pro-business Treasury our country has ever seen".

As much as Labour promises to prioritise growth, it requires an initial injection of investment, which may come from taking on more debt or raising taxes, or other innovative mechanisms such as using pension funds to invest into British startup companies. However, economic growth cannot come without a well integrated supply chain, affordable energy and affordable labour; be it in the UK or elsewhere. I cannot see how that happens without rejoining the EU. Based on the latest forecasts from the OBR relating to Brexit, they now say, "The post-Brexit trading relationship between the UK and EU, as set out in the ‘Trade and Cooperation Agreement’ (TCA) that came into effect on 1 January 2021, will reduce long-run productivity by 4 per cent relative to remaining in the EU''.

Our debt stands at £2.7 trillion, and right now, policies about creating a National Wealth Fund or a publicly-owned renewable energy company are just lip service. Policies are not about repaying the capital but servicing the debt which is increasingly becoming more expensive. We have an ageing population, a population with a low birth rate, a population that's increasingly too ill or depressed to work, and a population that expects a certain social contract. This needs to be funded but we need access to new markets, a new labour force and a supply of crucial raw materials.

We can't begin to resolve this until we put ourselves in a stronger position with an economic bloc, the EU, that can build strong economic alliances with another powerful emerging economic bloc - BRICS. But it would be done by better ensuring the protection of the EU as a whole as opposed to individual European countries negotiating their own trade relationships.

Frankly, Nigel Farage, no matter how charming and patriotic one can be with an EU passport, has been the single greatest threat to not only the future economic prosperity of the UK but our national economic security. If this isn't reversed, I envision a weaker UK, a weaker EU, with a greater reliance on the US.

Mohammad Uz-Zaman is director of ADL Estate Planning


Asian Development Bank: Pathways to Transform Food Systems in Asia-Pacific Region

In the Asia and Pacific region, where the highest number of people face acute food insecurity, rice prices soared by more than 40 percent last year – against a global backdrop of falling food prices.

[caption id="attachment_26876" align="aligncenter" width="900"] By Qingfeng Zhang Senior Director - agriculture, food, nature, and rural development at ADB’s Sectors Group[/caption]

High rice prices hit the poorest people first and hardest; around 45 percent of Asian residents have trouble accessing healthy food. Floods in Pakistan, heatwaves in India and droughts in central Asia have worsened this. Disruptions to livelihoods are exacerbating food scarcity, and are compounded by climate-change-induced migration.

Food systems have been hit by loss of biodiversity, environmental damage, and climate change. Ecosystem degradation has put pressure on Asia’s vulnerable food-production systems. The region’s ecosystems, from tropical forests to coral reefs, have been polluted, ignored, or damaged over recent decades. Biodiversity loss leads to a worsening of climate change – and an increasing threat to food security.

Agriculture accounts for 70 percent of the world’s water resources and 50 percent of its habitable land – and causes up to 80 percent of its biodiversity loss. Emissions of methane and nitrous oxide are significant contributors to global warming.

The cost of existing global food systems stands at $3tn annually. A shift towards healthier diets, with better protection for biodiversity, could yield as much as $10tn a year in benefits, says the Food System Economics Commission.

Leading international financial institutions have agreed to address the climate-food-Nature nexus by introducing coherent tracking methodology, adopting co-ordinated policy diagnoses, promoting joint knowledge-sharing, and establishing an innovation platform.

There are clear avenues for action for the Asia-Pacific region. In the short term, there is a need to strengthen emergency-response mechanisms. This should include social assistance, food-voucher programmes, school lunches, and a countercyclical support facility to provide fast-disbursing financing.

In the medium term, the focus must be on strengthening regional co-operation to share policy and market information and jointly respond to food security risks instead of imposing export bans.

Over the long term, developing more transparent and reliable markets will create stronger, more resilient agriculture value chains, and empower agribusinesses to become more efficient.

There is also a need to promote a value-chain approach to transform systems and cover all activities related to food production and consumption.

Agrifood value chains comprise activities from seed- and fertilizer production to food products in various forms. They also support extensions, research and development, technical education and training, logistics, marketing, and financing.

By viewing a series of interlinked activities as a whole, the value-chain approach can improve efficiency in primary agriculture products, the use of energy, water, land and soil, and limit carbon footprints. It can also help to ensure food safety and traceability.

Digitalisation is an efficient and inclusive way of connecting various stakeholders on producer and consumer sides of the fence. Early warning systems for extreme climate events can help farmers to better manage crops.

Incentive mechanisms should be created to shift governmental support towards Nature-based solutions and infrastructure. This includes using lakes and wetlands to treat wastewater and improve storage, “sponge” villages to mitigate stormwater run-off and extreme heat, zero tillage to conserve soil quality, mangrove protection to reduce coastal erosion and flooding, and forest maintenance to support groundwater recharge.

These Nature-based solutions provide a range of added benefits, including carbon storage, climate moderation, food security, and eco-tourism. Small farmers need help transitioning to crops that are less dependent on chemical fertilizers, and using technologies such as drip-irrigation. Enhancing infrastructure such as road networks and port facilities can help farmers to connect with international markets. Improving access to adequate storage and transport systems can reduce food waste.

The food supply chain needs to be climate-resilient, with adequate cold storage, warehousing, rural connectivity, and digital services that are affordable to farmers. The recent Pakistan and Bangladesh floods showed the importance of climate-resilient food storage.

Better rural connectivity can support the logistics of agriculture supplies, while technologies such as remote sensing can improve land-use and management via monitoring and diagnostics.

The greatest need is to improve the supply of healthy, nutritious food. This means more education, better labelling and regulation, fortification and diversification, an emphasis on food safety, and disease prevention.

There is a lot of pressure on Asia’s fragile food systems, and support must be scaled-up to help developing countries meet their challenges.

Such a method requires strong knowledge of adaptation solutions, available good-quality data, and support from development finance institutions.

The views expressed are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.


From Solo Star to Team Captain: An Accidental Manager's Journey

Suddenly shunted into the C-suite, or find yourself the foreman of your former colleagues? Don’t panic…

They were the top performers, consistently exceeding expectations and thriving in their respective fields. But then came the promotion, an unforeseen turn of events that catapulted them into the role of team leader.

Welcome to the realm of the "accidental managers", a growing bunch of individuals who find themselves unwittingly thrust into leadership positions. Sometimes, without any formal training…

While these people are unquestionably masters of their domains, they face a unique challenge: Navigating the uneven and often uncharted terrain of people-management, mastering the delicate art of enablement, and cultivating a dynamic team atmosphere.

The syndrome is not new, or unusual. According to studies, up to 80 percent of new managers begin their leadership path with no professional training. They are frequently promoted for their demonstrated technical knowledge – leaving them with a major skill-gap when it comes to managing people.

This can be linked to circumstances, including rapid company growth, a strong demand for specialised talents, and organisations' limited resources when it comes to leadership development programmes.

Facing the Unfamiliar

The adjustment to a new set of responsibilities can be discombobulating. Previously familiar tasks, such as project completion or problem-solving, must be tackled in a different way. Performance evaluations, conflict resolution, and strategic direction-setting all demand distinct skill sets.

Initially, there may be a propensity to micromanage, or to rely on technical abilities, or even to become overwhelmed. This can hinder team growth and foster a culture of dependency, rather than empowerment.

Navigating the Rapids

So, how can these managers rise to the challenge and effectively lead their teams? Here are some key strategies:

Embrace continuous learning and recognise that leadership is an ongoing process. Actively seek out development opportunities, mentorship programmes, insightful books, and internet resources. Effective communication, delegating, coaching, and conflict resolution skills will be necessary.

The most successful transformation entails switching from a "doing" to a "enabling" perspective. Learn how to empower your team members through effective work delegation, clear guidance, and constant support. Trust them to step up and shine.

Foster trust and open communication by providing a secure environment in which your team may communicate ideas, issues, and challenge the status quo. Create a culture that welcomes diverse viewpoints.

Celebrate individual and team accomplishments. Take the time to appreciate what your team does. Emphasise how individual contributions add to shared successes, and communal achievement.

Even experienced leaders rely on others for assistance. Don't be afraid to seek advice from more experienced co-workers, HR officials, or external coaches. A mentor can provide a sounding board and help you navigate difficult situations.

Unexpected Rewards

Despite the initial challenges, the accidental manager's journey has enormous potential for personal and professional development. As your team begins to grow and meet its goals, you will experience the sense of success that is unique to leadership. The abilities you develop will open up new career opportunities for you, and those who work under your guidance.

The journey of the accidental manager is one of continuous learning, adaptation, resilience – and it comes with a rewarding sense of accomplishment. By facing obstacles head-on, investing in your own development, and always putting your team first, you may become the captain your team has been waiting for.


Patrick Anderson Knows How to Weather Rough Seas — and Has a Good Crew Behind Him

Patrick Anderson, the chief executive of Nordic asset management and financial markets firm United Bankers, in conversation with CFI.co.

United Bankers management team is responsible for the company’s business as a whole. It prepares the corporate strategy and operating principles — and in the hot seat is chief executive officer Patrick Anderson.

[caption id="attachment_26884" align="aligncenter" width="900"] Patrick Anderson[/caption]

His main task is to manage and control the business of the Helsinki-based company. As well as implementing United Bankers’ strategy and running the company’s business in accordance with the Limited Liability Companies Act, Anderson has an array of responsibilities — which he embraces.

CFI.co: What excites you about the business world in general?

Patrick Anderson: The competitive global landscape, where the “winner” is the one delivering the best value proposition to its clients.

What lessons have you learned during your career?

That to have talent isn’t enough. The world is full of brilliant, talented people. The key is to combine that talent with an appetite for hard work — and having a little bit of luck on the way helps, as well.

What motivates and enthuses you?

We’ve transformed the company into one of the most exciting alternative managers in Northern Europe. What I find exciting is the scaling-up phase we are going through right now.

Our offering is unique. All our core funds are dedicated towards global solutions, and through them we can make a difference. Those global challenges include climate change, replacing plastics, capturing CO2, and working to solve European energy demand in a sustainable way. Megatrends provide us with tailwinds. We offer our clients the ability to invest sustainably and in a climate-friendly way.

Can you share any secrets about your organisation’s management style?

We are customer-centric, we have agility and a strong team spirit, combined with a flat and entrepreneurial leadership culture. As the UB team holds more than 60 percent of the equity in the company, we truly are in the same boat, long-term, as our customers, clients, and stakeholders.

What are the key strengths of the team you lead?

I’m very proud of the team — we’ve been building it for almost 40 years. We have deep expertise in areas such as forestry, forest innovations, real estate, and renewable energy — not forgetting our history with asset management, of course. The team is fully invested in the company and in our funds. Basically, we’re very proud of the Nordic alternatives platform we’ve created.

What are the key traits of a good corporate leader?

Empathy, modesty, understanding the difference between what you know and what you don’t. Also, being a good listener and having a vision: combining strategic direction with speed and support. It’s very much like being the captain of a ship.

Do those criteria change when applied to your particular industry?

Although the financial industry is often seen as cold and Darwinian, the same principles apply to many organisations and sectors. Your main asset is your team, and you’re leading them on a journey through good weather and bad. Trust and a shared passion are essential.