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John Springford: Europe Needs Service-Market Liberalization

John Springford: Europe Needs Service-Market Liberalization | Ecology | Scoop.it

In exchange for sharing southern Europe's debt burden, Germany is demanding liberal economic reforms in those countries. Yet Germany is not following its own advice. Its services markets are heavily regulated. Diplomas are required by law for people to work as wooden boat builders, painters and decorators, or ski instructors. Pharmacists are only allowed to own four shops. Lawyers' fees for most civil and criminal cases are set by a centrally-determined scale, not the market.

Germany's strategy for Europe's economic future hardly includes services. The German government believes that the pre-requisite for growth is more flexible labor, with competitive wages, producing manufactured goods for sale abroad: hence its call for southern Europe to deflate and shift towards exports. But even in Germany, the manufacturing sector only accounts for 20% of GDP. And since European countries mostly trade with each other, they cannot all move into external surplus at once.

That's why productivity growth in services—which make up the majority of European output—must be at the heart of any long-term growth plan. This has been anaemic in the European Union, where productivity gains averaged only 1.2% per year between 1995 and 2009. In that same period, the U.S. managed 3% average annual productivity growth.

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nsf.gov - National Science Foundation (NSF) News - Ecologists Call for Preservation of Planet's Remaining Biological Diversity - US National Science Foundation (NSF)

nsf.gov - National Science Foundation (NSF) News - Ecologists Call for Preservation of Planet's Remaining Biological Diversity - US National Science Foundation (NSF) | Ecology | Scoop.it

Twenty years after the Earth Summit in Rio de Janeiro, 17 ecologists are calling for renewed international efforts to curb the loss of Earth's biological diversity.

The loss is compromising nature's ability to provide goods and services essential for human well-being, the scientists say.

Over the past two decades, strong scientific evidence has emerged showing that decline of the world's biological diversity reduces the productivity and sustainability of ecosystems, according to an international team led by the University of Michigan's Bradley Cardinale.

It also decreases ecosystems' ability to provide society with goods and services like food, wood, fodder, fertile soils and protection from pests and disease.

 

"Water purity, food production and air quality are easy to take for granted, but all are largely provided by communities of organisms," said George Gilchrist, program director in the National Science Foundation's Division of Environmental Biology, which funded the research.

 

"This paper demonstrates that it is not simply the quantity of living things, but their species, genetic and trait biodiversity, that influences the delivery of many essential 'ecosystem services.'''

 

Human actions are dismantling ecosystems, resulting in species extinctions at rates several orders of magnitude faster than observed in the fossil record.

 

If the nations of the world make biodiversity an international priority, the scientists say, there's still time to conserve much of the remaining variety of life--and possibly to restore much of what's been lost.

 

The researchers present their findings in this week's issue of the journal Nature.

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