Energy Consumption Per Capita – Part 6

General Strategies of Improvement

Contents

1. Introduction

2. Underdeveloped Country Strategies

3. Developing Country Strategies

4. Developed Country Strategies

5. Concluding Remarks

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Bitesize Edition

• Last week, I took the Big Cycle to show how over the long term, the productivity of a nation rises. Combined with the exponential technological innovation curve, productivity rises at a quicker rate in developed countries rather than in developing and underdeveloped countries.

• With this idea in mind, I’ll explore general strategies that underdeveloped, developing, and developed countries could consider in their energy transitions. It’s all well saying underdeveloped countries could use artificial intelligence in their transitions when they’re not in a position to at all. The transition for countries around the world will occur at different speeds and hence will require different strategies. That’s what I’ll seek to break down today.

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Introduction

Last week, I introduced a joint cycle between the big cycle of nations and the exponential technological innovation cycle. Underdeveloped countries find themselves in the agricultural era, with sights on the industrial era allowing a tailwind to economic growth and quality of life improvements. Developing countries such as India, have entered the internet era and find themselves in the strongest position to improve quality of life. Finally, developed countries find themselves entering a transition period between the Internet and AI era. The new AI era promises improvements to productivity never seen before, but the transition between eras often involves the navigation of a crisis.

This crisis could come in many forms, perhaps an energy crisis. Regardless, our clean energy transition is of key importance, so what strategies can underdeveloped nations, developing nations, and developed nations adopt to facilitate and not hinder this transition? Let’s dive in.

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Underdeveloped Country Strategies

Considering the framework above, with the big cycle imposed upon the technological innovation cycle, we can see that productivity will be rising at a slower rate during the agricultural era where many underdeveloped countries find themselves. So, it’s a situation where once you get started with industrialisation, you’ve gained a tailwind. How can we get underdeveloped countries in this situation?

• Local Renewable Resources – Access to electricity and clean cooking fuels are two of the most important strategies to improve the quality of life for people in underdeveloped countries. Currently, many in Somalia use diesel generators. How can Somalia utilise its environment to involve cleaner energy sources for its people? They have great solar potential, but the security of infrastructure would be a worry. This is a priority before investment will arrive, but this process has to begin.

• Incentives For Investment – A certain level of stability is often needed for other nations and private corporations to invest. However, as we’ve seen with the United States in Somalia, security concerns can be aided first to create a more stable environment in which private companies or countries could be incentivised to gain a piece of the pie in an underdeveloped country as it transitions into a period of development.