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Argentina

Water Is Everyone's Business As World Population Tops Seven Billion

As many as one billion people may not have access to clean drinking water by 2050. Changes are needed, which may also create investment opportunities.

Water Drop
Water Drop
Kim Cramer Larsson

SANTIAGO - As the world's population grows, the demand for drinkable water grows with it. By 2050, it is projected that one billion people will not have full access to this fundamental resource.

Recent statistics and projections from the United Nations are cause for real concern. In 2050, the global population, which is now beyond seven billion inhabitants, should reach 10 billion, with a predicted 10% of them -- at current rates of access -- who will be shut off from proper drinking water.

At current rates, the per capita daily use of water in the U.S. is 600 liters . In China, the number is much lower, with only 90 liters a day consumed by each person, even though that number is beginning to rise. According to Fortune magazine, the demand for water in India will double in 10 years, and for agriculture it will increase by more than 40% by 2030.

Globally, the use of water in agriculture represents 71%, while for industry it's another 16%. Some 270 liters of water are needed to produce a cup of coffee – from cultivation until the cup of java is sold at Starbucks. The production of a glass of juice requires 7,000 liters while a pair of jeans needs 11,000 liters.

Meanwhile, climate change and pollution have turned water into an increasingly scarce resource. Putting it bluntly, water politics is heating up, and will only get hotter.

Can investors benefit from the current state of water demand and resources? Will individuals begin conserving water in order to save money? Looking around, there are indeed some companies in the water distribution business worth investing in.

At the same time, you could also invest in companies dedicated to the creation of infrastructures, water management as a resource, water bottling, and even a collective investment fund that invests in these type of companies such as Power Shares Water Resources, Guggenheim S&P Global Water Index and PowerShares Global Water.

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Economy

Lex Tusk? How Poland’s Controversial "Russian Influence" Law Will Subvert Democracy

The new “lex Tusk” includes language about companies and their management. But is this likely to be a fair investigation into breaking sanctions on Russia, or a political witch-hunt in the business sphere?

Photo of President of the Republic of Poland Andrzej Duda

Polish President Andrzej Duda

Piotr Miaczynski, Leszek Kostrzewski

-Analysis-

WARSAW — Poland’s new Commission for investigating Russian influence, which President Andrzej Duda signed into law on Monday, will be able to summon representatives of any company for inquiry. It has sparked a major controversy in Polish politics, as political opponents of the government warn that the Commission has been given near absolute power to investigate and punish any citizen, business or organization.

And opposition politicians are expected to be high on the list of would-be suspects, starting with Donald Tusk, who is challenging the ruling PiS government to return to the presidency next fall. For that reason, it has been sardonically dubbed: Lex Tusk.

University of Warsaw law professor Michal Romanowski notes that the interests of any firm can be considered favorable to Russia. “These are instruments which the likes of Putin and Orban would not be ashamed of," Romanowski said.

The law on the Commission for examining Russian influences has "atomic" prerogatives sewn into it. Nine members of the Commission with the rank of secretary of state will be able to summon virtually anyone, with the powers of severe punishment.

Under the new law, these Commissioners will become arbiters of nearly absolute power, and will be able to use the resources of nearly any organ of the state, including the secret services, in order to demand access to every available document. They will be able to prosecute people for acts which were not prohibited at the time they were committed.

Their prerogatives are broader than that of the President or the Prime Minister, wider than those of any court. And there is virtually no oversight over their actions.

Nobody can feel safe. This includes companies, their management, lawyers, journalists, and trade unionists.

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