Free-Market German Aristocrat Receives Ovation for Opposing Bailout

(p. A7) BERLIN — Could the heir apparent to Chancellor Angela Merkel be a wealthy, handsome 37-year-old baron who loves rock ‘n’ roll?

The baron, Karl-Theodor zu Guttenberg, vaulted to prominence this year when he took over the often dull job of economics minister in the midst of the financial crisis. His independent stand on a thorny economic matter earned him the respect of voters.
. . .

It was his independent streak that earned him the respect of voters, rather than just their curiosity. Mr. Guttenberg broke ranks with Mrs. Merkel over how to handle the troubled German automaker Opel. Mrs. Merkel supported a consortium led by Magna International, a Canadian auto parts maker, and Sberbank, a Russian bank. Mr. Guttenberg favored bankruptcy, and even offered to resign just months into his tenure.
He lost the battle, but gained credibility with voters — an important commodity with a disenchanted electorate that has largely ignored the coming vote. At the big kickoff campaign rally in Düsseldorf for Mrs. Merkel’s conservative Christian Democratic Union, Mr. Guttenberg was the only politician to receive a spontaneous ovation from the crowd of 9,000.

For the full story, see:
NICHOLAS KULISH and JUDY DEMPSEY. “Aristocrat’s Rise Shakes German Doldrums.” The New York Times (Weds., September 22, 2009): A7.
(Note: ellipsis added.)

“Axel Springer Has Dared to Compete with Itself”

The European newspaper publisher Axel Springer, discussed in the story quoted below, appears to be following the advice of Christensen and Raynor in their book The Innovator’s Solution. In that book, they suggest that incumbent firms need to be willing to set up units that compete with their older business models, if they hope to survive the introduction of disruptive innovations.

(p. B4) PARIS — As the death toll in the American newspaper industry mounted this month, the German publisher Axel Springer, which owns Bild, the biggest newspaper in Europe, reported the highest profit in its 62-year history.
. . .
Axel Springer generates 14 percent of its revenue online, more than most American newspapers, even though the markets in which it operates — primarily Germany and Eastern Europe — are less digitally developed than the United States.
One reason, Mr. Döpfner said, is that Axel Springer has dared to compete with itself. Instead of trying to protect existing publications, it acquired or created new ones, some of which distribute the same content to different audiences.
At one newsroom in Berlin, for example, journalists produce content for six publications: the national newspaper Die Welt, its Sunday edition and a tabloid version aimed at younger readers; a local paper called Berliner Morgenpost, and two Web sites.

For the full story, see:
ERIC PFANNER. “European Newspapers Find Creative Ways to Thrive in the Internet Age.” The New York Times (Mon., March 29, 2009): B4.
(Note: ellipsis added.)

The Christensen and Raynor book mentioned above, is:
Christensen, Clayton M., and Michael E. Raynor. The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston, MA: Harvard Business School Press, 2003.

French Entrepreneur Fourneau Was Against Law, But Used It

The existence and details of patent laws can matter for creating incentives for invention and innovation. The patent laws in Germany and France in the 1930s reduced the incentives for inventing new drugs.

(p. 141) German chemical patents were often small masterpieces of mumbo jumbo. It was a market necessity. Patents in Germany were issued to protect processes used to make a new chemical, not, as in America, the new chemical itself; German law protected the means, not the end.   . . .
. . .
(p. 166) Fourneau decided that if the French were going to compete, the nation’s scientists would either have to discover their own new drugs and get them into production before the Germans could or find ways to make French versions of German compounds before the Germans had earned back their research and production costs—in other words, get French versions of new German drugs into the market before the Germans could lower their prices. French patent laws, like those in Germany, did not protect the final product. “I was always against the French law and I thought it was shocking that one could not patent one’s invention,” Fourneau said, “but the law was what it was, and there was no reasons not to use it.”

Source:
Hager, Thomas. The Demon under the Microscope: From Battlefield Hospitals to Nazi Labs, One Doctor’s Heroic Search for the World’s First Miracle Drug. New York: Three Rivers Press, 2007.
(Note: ellipses added.)

Industrialist Duisberg Made Domagk’s Sulfa Discovery Possible

(p. 65) . . . Domagk’s future would be determined not only by his desire to stop disease but also by his own ambition, his family needs, and the plans of a small group of businessmen he had never met. He probably had heard of their leader, however, one of the preeminent figures in German business, a man the London Times would later eulogize as “the greatest industrialist the world has yet had.” His name was Carl Duisberg.

Duisberg was a German version of Thomas Edison, Henry Ford, and John D. Rockefeller rolled into one. He had built an empire of science in Germany, leveraging the discoveries of dozens of chemists he employed into one of the most profitable businesses on earth. He knew how industrial science worked: He was himself a chemist. At least he had been long ago. Now, in the mid-1920s, in the twilight of his years, his fortunes made, his reputation assured, he often walked in his private park alone—still solidly built, with his shaved head and a bristling white mustache, still a commanding presence in his top hat and black overcoat—through acres of forest, fountains, classical statuary, around the pond in his full-scale Japanese garden by the lacquered teahouse, over his steams, and across his lawns.

Source:
Hager, Thomas. The Demon under the Microscope: From Battlefield Hospitals to Nazi Labs, One Doctor’s Heroic Search for the World’s First Miracle Drug. New York: Three Rivers Press, 2007.
(Note: ellipsis added.)

“Nuclear Power Provides 77 Percent of France’s Electricity”

FrenchNuclearReactorFlamanville20080824.jpg “France is constructing a nuclear reactor, its first in 10 years, in Flamanville, but the country already has 58 operating reactors.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 6) FLAMANVILLE, France — It looks like an ordinary building site, but for the two massive, rounded concrete shells looming above the ocean, like dusty mushrooms.

Here on the Normandy coast, France is building its newest nuclear reactor, the first in 10 years, costing $5.1 billion. But already, President Nicolas Sarkozy has announced that France will build another like it.
. . .
Nuclear power provides 77 percent of France’s electricity, according to the government, and relatively few public doubts are expressed in a country with little coal, oil or natural gas.
With the wildly fluctuating cost of oil, anxiety over global warming from burning fossil fuels and new concerns about the impact of biofuels on the price of food for the poor, nuclear energy is getting a second look in countries like the United States and Britain. Even Germany, committed to phasing out nuclear power by 2021, is debating whether to change its mind.

For the full story, see:
STEVEN ERLANGER. “France Reaffirms Its Faith in Future of Nuclear Power.” The New York Times, First Section (Sun., August 17, 2008): 6. (Also on p. 6 of the NY edition)
(Note: ellipsis added.)

FranceNukeMap20080824.jpg

Source of map: online version of the NYT article quoted and cited above.

Solar Energy Costs Soar in Germany

(p. C1) Thanks to its aggressive push into renewable energies, cloud-wreathed Germany has become an unlikely leader in the race to harness the sun’s energy. It has by far the largest market for photovoltaic systems, which convert sunlight into electricity, with roughly half of the world’s total installations. And it is the third-largest producer of solar cells and modules, after China and Japan.
Now, though, with so many solar panels on so many rooftops, critics say Germany has too much of a good thing — even in a time of record oil prices. Conservative lawmakers, in particular, want to pare back generous government incentives that support solar development. They say solar generation is growing so fast that it threatens to overburden consumers with high electricity bills.
. . .
(p. C7) At the heart of the debate is the Renewable Energy Sources Act. It requires power companies to buy all the alternative energy produced by these systems, at a fixed above-market price, for 20 years.
. . .
Christian Democrats, . . . , say the law has been too successful for its own good. Utilities, they note, are allowed to pass along the extra cost of buying renewable energy to customers, and there is no cap on the capacity that can be installed — as exists in other countries to prevent subsidies from mushrooming.
At the moment, solar energy adds 1.01 euros ($1.69) a month to a typical home electricity bill, a modest surcharge that Germans are willing to pay. That will increase to 2.14 euros a month by 2014, according to the German Solar Energy Association.
But the volume of solar-generated energy is rising much faster than originally predicted, and critics contend that the costs will soar. Mr. Pfeiffer, the legislator, said solar power could end up adding 8 euros ($12.32) to a monthly electricity bill, which would alienate even the most green-minded. With no change in the law, he says, the solar industry will soak up 120 billion euros ($184 billion) in public support by 2015.

For the full story, see:
MARK LANDLER. “Solar Valley Rises in an Overcast Land.” The New York Times (Fri., May 16, 2008): C1 & C7.
(Note: ellipses added.)

Hitler’s Critique of American Materialism

Here are some musings by Hitler, in which he compares Germany under Hitler’s National Socialism, with America. The musings are dated August 1, 1942, and are quoted in the article cited below:

(p. 3) I grant you that our standard of life is lower. But the German Reich has 270 opera houses – a standard of cultural existence of which they over there have no conception. They have clothes, food, cars and a badly constructed house – but with a refrigerator! This sort of thing does not impress us.

For the full story, see:

MARC D. CHARNEY. “Ideas & Trends; Well, at Least He Liked Our Cars.” The New York Times, Section 4 (Sun., April 3, 2005): 3.

Putin’s Russia Portrays Stalin, Not as Monster, But as Strong Ruler

(p. 5)  STALIN has undergone a number of transformations of his historical image in Russia, interpretations that say as much about the country’s current leaders as about the dictator himself.

In the West, Stalin is remembered for the numbers of his victims, about 20 million, largely his own citizens, executed or allowed to die in famines or the gulag. They included a generation of peasant farmers in Ukraine, former Bolsheviks and other political figures who were purged in the show trials of the 1930s, Polish officers executed at Katyn Forest, and Russians who died in the slave labor economy. Stalin’s crimes have been tied to his personality, cruelty and paranoia as well as to the circumstances of Russian and Soviet history.

While not denying that Stalin committed the crimes, a new study guide in Russia for high school teachers views his cruelty through a particular, if familiar, lens. It portrays Stalin not as an extraordinary monster who came to power because of the unique evil of Communism, but as a strong ruler in a long line of autocrats going back to the czars. Russian history, in this view, at times demands tyranny to build a great nation.

The text reinforces this idea by comparing Stalin to Bismarck, who united Germany, and comparing Russia in the 1930s under the threat of Nazism to the United States after 9/11 in attitudes toward liberties.

The history guide — titled “A Modern History of Russia: 1945-2006” — was presented at a conference for high school teachers where President Vladimir V. Putin spoke; the author, Aleksandr Filippov, is a deputy director of a Kremlin-connected think tank.

 

For the full commentary, see:

ANDREW E. KRAMER.  "WORD FOR WORD | NEW RUSSIAN HISTORY; Yes, a Lot of People Died, but …"  The New York Times , Week in Review section  (Sun., August 12, 2007):  5.

(Note:  ellipsis in title in original.)

 

“Global Warming Provides Opportunities”

 

(p. C3)  In the short term, global warming provides opportunities, . . . , especially in temperate zones. Warming trends have lengthened the golfing season in Antalya, Turkey, by over a month, said Ugur Budak, golf coordinator of Akkanat Holdings there.

Golfing used to begin in March. But tourists from Britain and Germany are now coming to Antalya in February.

“Winters are milder, so the effect on us for now is good,” Mr. Budak said. So far there had not been problems like water shortages that are experienced in other parts of the world, he said, “but we know we could be vulnerable in the future.” 

 

For the full story, see: 

ELISABETH ROSENTHAL.  "How Do You Ski if There Is No Snow?"  The New York Times  (Thurs., November 1, 2007):  C3.

(Note:  ellipsis added.)

 

Energy Experts Question Reliability of Wind Power

 

   "A wind farm near Malmo, Sweden. The use of wind power in many European countries has stagnated in recent years."  Source of caption and photo:  online version of the NYT article quoted and cited below.

 

(p. C1)  Yet Sweden’s gleaming wind park is entering service at a time when wind energy is coming under sharper scrutiny, not just from hostile neighbors, who complain that the towers are a blot on the landscape, but from energy experts who question its reliability as a source of power.

For starters, the wind does not blow all the time. When it does, it does not necessarily do so during periods of high demand for electricity. That makes wind a shaky replacement for more dependable, if polluting, energy sources like oil, coal and natural gas. More-(p. C5)over, to capture the best breezes, wind farms are often built far from where the demand for electricity is highest. The power they generate must then be carried over long distances on high-voltage lines, which in Germany and other countries are strained and prone to breakdowns.

In the United States, one of the areas most suited for wind turbines is the central part of the country, stretching from Texas through the northern Great Plains — far from the coastal population centers that need the most electricity.

In Denmark, which pioneered wind energy in Europe, construction of wind farms has stagnated in recent years. The Danes export much of their wind-generated electricity to Norway and Sweden because it comes in unpredictable surges that often outstrip demand.

In 2003, Ireland put a moratorium on connecting wind farms to its electricity grid because of the strains that power surges were putting on the network; it has since begun connecting them again.

In the United States, proposals to build large wind parks in the Atlantic off Long Island and off Cape Cod, Mass., have run into stiff opposition from local residents on aesthetic grounds.

As wind energy has matured as an industry, its image has changed — from a clean, even elegant, alternative to fossil fuels to a renewable energy source with advantages and drawbacks, like any other.

“The environmental benefits of wind are not as great as its champions claim,” said Euan C. Blauvelt, research director of ABS Energy Research, an independent market research firm in London. “You’ve still got to have backup sources of power, like coal-fired plants.”

 

For the full story, see: 

MARK LANDLER.  "Wind Power, and Resistance; Sweden Turns to a Promising Power Source, With Flaws."  The New York Times   (Fri., November 23, 2007):  C1 & C5.

(Note:  online the title was simply "Sweden Turns to a Promising Power Source, With Flaws.")