The Economic Effect of Japan's Earthquake, Tsunami and Nuclear Disaster

On Friday, March 11, 2011 at 2:46 pm, a 9.2 earthquake struck off the coast of Japan. This lead to a chain reaction of events leading to a tsunami, and a nuclear disaster as one of Japan's power stations leaked radiation. What are the global effects of these three disasters?

1. Higher Energy Prices

Energy prices are soaring because of the fear that the current unrest in the Middle East is affecting the global supply of oil. The disaster in the Fukusima power station highlights the need for Japan to now import traditional energy sources to replace any energy produced through its nuclear facilities- which will add to more demand for natural gas, and oil.

2. Infrastructural Renewal Projects

Both the earthquake and the tsunami have badly damaged much of Japan's infrastructure. Obviously a rebuilding phase would mean a government with a high debt problem, would have to invest in the reconstruction of those areas affected by this triple disaster. This could become the responsibility of the corporate sector, who dominate Japan's economy.

3. Banking and Insurance Losses

Whether Insurance companies pay out billions of dollars of claims due to the the earthquake and tsunami, remains to be seen, but the "man-made" nuclear disaster could become their liability. Japan's global banking and insurance industries may be forced to reinvest at home, depleting any global investments outside the nation.

4. Change of Government?

Before these three disasters, ordinary Japanese had lost their confidence in another scandal hit government. How the government reaction to these three disasters, and the subsequent rebuilding process, could change the public perceptions of their leaders- but in the long term, we could see more changes inside the top echelon of the Japanese government.

5. Environmental Perceptions

After the nuclear disaster in Fukusima, many people are questioning the wisdom of building nuclear energy plants in a quake zone. Depending on the radiation levels, and the area contaminated, a worldwide reaction to the use of nuclear energy could result in the ending of the Obama nuclear energy program in the USA, and even France's ambitious energy program.

6. Money Markets

Japan remains the worlds third largest economy, but also like the United States, one of its biggest debtors. The value of the yen could fall, as banks spend on reconstruction projects, whilst the Government may be forced to raise taxes to pay for them. Some large Japanese corporations may cancel or put on hold overseas projects, re-investing these funds in rebuilding the areas affected by the earthquake.

7. Asian-Pacific Growth

China has the money and the economy in this region, but Japan is a second player in economic terms. Japanese companies invest in much of South East and North Asia, whilst the government often sponsor education & training programs in the region. Japan's contributions in the area, could shrink, leading to some fears of reduced growth.

The natural disasters of the earthquake and tsunami, have led to the man made nuclear disaster, and destruction of part of a high tech nation.. Japanese are resilient, inventive and industrious people, and should overcome the hurdles of reconstruction. However this does have a short term effect on the global economy, and a long term effect on the future of the nuclear power industry.

Discover how you can survive and thrive during a period of immense economic change.

Going Nuclear is a Privilege, Not a Right

The head of the International Atomic Energy Agency (IAEA), Mohamed El Baradei, warned recently that more than 30 countries could soon have the technological know-how to produce nuclear weapons. As North Korea and Iran push forward with their atomic programs, it seems that going nuclear is becoming fashionable on the international stage.

There are currently five declared nuclear powers (the United States, France, Great Britain, Russia, and China) and two other states known to have nuclear weapons (India and Pakistan). Add in a couple of more countries suspected of having nukes (Israel and North Korea) and the total number of nations known or suspected to have nuclear weapons grows to nine.

The world community has long suspected, and probably rightly so, that Israel possesses an atomic weapons capability, a charge the Israeli government consistently and adamantly denies. North Korea, we now know, has the capability to at least test a nuclear device of some sort. But whether or not the DPRK has the ability to produce an actual atomic weapon, or the ability to deliver a nuclear payload in an attack on another country, is a question still unanswered.

According to El Baradei, many states are developing nuclear technology that is designed for peaceful energy production. The problem, though, is that these programs could quickly and easily be modified to develop atomic weapons.

Iran and Brazil are known to be actively working on uranium enrichment capability, and other countries, including Australia, Argentina, and South Africa are seriously considering programs of their own.

Thirteen more states either have the ability to produce weapons grade uranium, could build the technology to do so, or could use nuclear waste for weapons: Japan, South Korea, Canada, Germany, Sweden, Belgium, Switzerland, Taiwan, Spain, Hungary, the Czech Republic, Slovakia, and Lithuania.

Four nations recently announced they were initiating nuclear programs (Algeria, Egypt, Morocco, and Saudi Arabia) and fourteen more have expressed an interest in doing so, either for energy production or in response to regional realities. This group includes Tunisia, the United Arab Emirates, Bangladesh, Ghana, Indonesia, Jordan, Namibia, Moldova, Nigeria, Poland, Thailand, Turkey, Vietnam, and Yemen.

Yemen is a known hotbed for terrorists, as is Algeria. Egypt, Jordan and Saudi Arabia, though relatively friendly to the United States and the west, are constantly fighting their own internal battles against Islamic fundamentalists. The potential for global nuclear proliferation has never been greater, and the possibility of weapons of mass destruction falling into the hands of radicals determined to employ them has never been more real.

The global community, under the auspices of the United Nations, has been completely ineffective at dealing with nuclear programs in unstable countries. Negotiations over Iran's uranium enrichment activities are stalled as Russia and China try to protect their business interests. The economic sanctions resolution against North Korea was repeatedly reworded until it was weak enough to satisfy the DPRK's main trading partner, China, and even then several nations decided to only selectively enforce its provisions.

The simple truth is that not every nation has an absolute right to nuclear technology. The consequences of nuclear abuse are too severe to permit unchecked global proliferation. Until a nation has a stable government that demonstrates its ability to be responsible in the international arena, and in its internal politics, it should be prevented from developing any atomic program, for energy or weapons production.

It is absolutely critical for the world's major powers to confront North Korea and Iran, and to do so immediately and effectively. Neither country has demonstrated that it can be a responsible nuclear power, and neither country can be counted on to refrain from providing other rogue nations with nuclear technology.

There is no question that Kim Jong-Il's cash-starved government would sell nuclear technology to any national government or transnational group willing to pay for it. Such sales would provide the North Korean dictatorship with the resources it needs to further insulate itself from a discontented population.

The Iranians, on the other hand, would probably use nuclear technology to dominate the Middle East. The Persian nation's quest for regional hegemony is quickly becoming a reality, as Iran asserts its influence with Hezbollah against Israel and with the Shiite masses in Iraq, all the while taunting the United Nations and the west with its continued defiance over its nuclear program. But the potential for nuclear technology transfer from Iran cannot be discounted, either for political or economic reasons. Iran's loyalties lie with whoever will help in the quest for regional dominance.

Both North Korea and Iran must be stopped before it is too late. The United States has taken the lead in countering both countries, but the problem does not belong to the United States alone. Other nations must step up and act like the responsible global players they claim to be. Membership in the nuclear club must be selective and limited to those nations who can use the technology in a safe and responsible manner. Going nuclear is a privilege, not a right. And the sooner the major powers of the world recognize that fact, and take action to support it, the better off the world will be.

The Top Ten Countries Producing the Most Nuclear Electricity In 2011

Today, high energy power is a mystery for many people in society. Many people do not understand the benefits and disadvantages in employing heavy power as a (main) source of electrical energy. Whether or not that is vital, what is more pertinent is which nations are in the lead for the greatest electrical power. Below are the countries producing the most nuclear electricity in 2011.

As some people would expect, North America leads the race in the amount of electrical power produced. However, this fact is only a reality due to the number one producer, the United States. With a 780.1 terawatt-hours (TWh) quantity of power production, the U. S. Amasses the greatest energy without any country close in comparison.

Important to note, is that Canada at number eight, helps the U. S in achieving the number one continent with electric power. Canada creates 71 TWh to keep its ranking within the top ten.

The next biggest producer is at 415.5 TWh, which would be a hexagonal shaped country in Europe, or France. A very close competitor is the oriental country, Japan, which utilizes 318.8 TWh. As is noticeable by the numbers, the U. S. Has a larger production quantity than both the next two leading nations combined.

Only two other nations have a production amount within the hundreds, that being Germany at number four with 162.3 TWh and Russia (number five) at 130 TWh. After these figures the next ten nations in the top ten (in order) are the United Kingdom, Ukraine, Canada (as stated earlier), Sweden, and Spain at number ten.

In total there are twenty-nine nations that are supported on electrical power from their power plants. A few nations plan to implement such means of energy, while already existing users are looking for more. Overall, the total amount of energy created is 2,403.9 TWh. Thus concludes the countries producing the most nuclear electricity in 2011.

 

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