Ali Ettefagh at PostGlobal

Ali Ettefagh

Tehran, Iran

Dr. Ali Ettefagh serves as a director of Highmore Global Corporation, an investment company in emerging markets of Eastern Europe, CIS, and the Middle East. He is the co-author of several books on trade conflict, resolution of international trade disputes, conflicts in letters of credit, trade-related banking transactions, sovereign debt, arbitration and dispute resolutions and publications specific to the oil and gas, communication, aviation and finance sectors. Dr. Ettefagh is a member of the executive committee and the board of directors of The Development Foundation, an advisor to the United Nations High Commission for Refugees, and an advisor to a number of European companies. Dr. Ettefagh speaks Persian (Farsi), English, German, French, Spanish, Italian, Arabic and Turkish. Close.

Ali Ettefagh

Tehran, Iran

Dr. Ali Ettefagh serves as a director of Highmore Global Corporation, an investment company in emerging markets of Eastern Europe, CIS, and the Middle East. more »

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Catching Up With the Consumer

The question leads to several thoughts. The first thought is that the Olympic selection committee was not concerned with environmental issues some eight years ago when Beijing was chosen as a host. They were too busy with issues such as airports and hotel rooms, stadiums, finance, and government support. Somehow, they did not look into the future and neglected to forecast the environmental issues. Global Warming was not the fashionable topic in those days!

My next thought is more of a question. Why have most industrial products have been transformed over the last 50 - 60 years, but cars are still at the beginning of this development curve? Do we not have any fresh ideas to replace the stale internal combustion engine? I ought to take that thought further: The Chinese (and Indian) markets are large enough to test, adjust and prove new automotive technologies. Is it now the time to have a more honest sharing of knowledge and technology between the developed and the developing world?

Beijing, Tehran, Delhi and many other cities in developing Asia are facing the side effects of consumerism and higher living standards (at least in the ways measured by the developed world). This means higher consumption of electricity per capita as well as cars and, in turn, more pollution. It is a common problem for all developing countries: Mexico City, Manila, Bangkok, Caracas, Cairo and Tehran are all on the pollution watch list, just as other densely populated cities such as Athens, Istanbul, Rome, London and Paris. Most have formulated their indigenous system of dealing with such reality and they have all decided to limit circulation of cars around town. London, for example, has imposed a daily “congestion” charge. The city of Paris is renting bicycles as an alternative. Athens and Tehran have a policy of restricting traffic in parts of the city on alternate odd and even days.

Encouraging less driving in Tehran is a challenge. The government has confessed to losing that argument, and every day more than 1,200 new cars are added to the four million on Tehran streets. They join the three to four million motorcycles on the road, and the 500 new motorcycles being added each day. At least we can boast that car production now exceeds more than one million a year, not to mention imports!

Nobody seems to care about air pollution. There are two restricted traffic zones during the day: an inner zone with special rare permits, and the outer zone for movement on alternate odd-even days. This is intended limit pollution in a town surrounded by mountains on three sides. The law allows further emergency measures if pollution levels reach dangerous levels in this arid climate, where the northern edge of the town is 800 meters higher than its southern edge in an area a third the size of greater Los Angeles.

These measures are necessary, but hardly enough to reduce pollution. There are other interim measures in place, such as rationing of gasoline or subsidies to convert cars to burn cleaner natural gas. Most city buses and taxis use gas. However, these programs are too slow to make a difference, with higher levels of consumption neutralizing their impact and that of investment in refineries and cleaner fuel sources.

Like residents of large and congested towns in the developing world, Tehran residents and the Iranian government are baffled about what to do with ever-increasing road traffic and air pollution. With Iran’s relatively young population, I tend to think that this game of catching up with the consumer will continue.

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