What We Are Reading Today: Ethical Asset Valuation and the Good Society, by Christian Gollier
In this book, Christian Gollier develops a powerful method for transforming our societal goals of collective prosperity into the cornerstone of our financial decision making.
Updated 15 May 2018
Project Syndicate
For all of their focus on asset prices, financial economists rarely ask if assets are priced ethically — that is, if their prices are compatible with the public good.
Yet in a world facing major, possibly catastrophic problems — global warming, for instance, and growing inequality — it is now more important than ever that we allocate capital to projects that will benefit society as a whole, not just today but far into the future.
In this book, Christian Gollier develops a powerful method for transforming our societal goals of collective prosperity into the cornerstone of our financial decision making.
“Ethical Asset Valuation and the Good Society” starts by stating transparent moral principles and, from these, derives simple rules that can be used to evaluate saving and investment decisions in terms of the public good.
Rather than trying to explain observed asset prices, Gollier derives what these prices ought to be in order to direct capital toward socially desirable investments.
He focuses especially on the two prices that drive most financial decisions — the price of time as reflected in the interest rate and the price of risk — and explores the role these play in long-term planning.
Building on criticism of the short-term thinking of financial markets, Gollier suggests ways to shift investment toward the future through the discounting of the valuation of assets and investments with long-term benefits.
In this sophisticated but accessible work, Gollier builds a bridge between welfare economics and finance theory to provide a framework for ethical valuation capable of establishing what asset prices should be on the basis of our shared moral values.
Saudi AI authority enhances Makkah route for 7 nations
Updated 3 sec ago
Arab News
RIYADH: The Saudi Authority for Data and Artificial Intelligence is participating in providing technical and digital services for the Makkah Route Initiative, a program under the Ministry of Interior’s Pilgrim Experience Program which aligns with Saudi Vision 2030 initiatives.
Engineers and technicians are operating across Morocco, Indonesia, Malaysia, Pakistan, Bangladesh, Turkiye, and Ivory Coast, integrating them with the authority’s systems, the Saudi Press Agency reported.
Its tasks include developing highly private technical systems that meet service requirements, such as border systems, Hajj systems, traveler registration systems, and mobile bags equipped with biometric registration devices, all aimed at streamlining procedures.
The efforts of the authority are part of the extensive support provided by Crown Prince Mohammed bin Salman to enhance the fields of data and AI, stimulating their growth and maximizing their benefits.
Launched in 2019 in Muslim-majority countries, the scheme allows pilgrims to fulfill all visa, customs and health requirements at their airport of origin, saving hours of waiting before and on arrival in the Kingdom.
The process begins with the issue of electronic visas and individual information collection, followed by streamlined passport procedures before departure.
Stickers are placed on luggage and passports containing information on the flight data and place of residence of each pilgrim. The tagging service is carried out by a specialized team working under the supervision of the Ministry of Hajj and Umrah.
Teams at King Abdulaziz International Airport in Jeddah and Prince Mohammad bin Abdulaziz International Airport in Madinah receive the luggage, which is then delivered to accommodation of the pilgrims.
The Ministry of Interior is implementing the Makkah Route initiative with several agencies, including the Ministry of Foreign Affairs, the Ministry of Hajj and Umrah, the General Authority of Civil Aviation, the Zakat, Tax and Customs Authority, the Saudi Authority for Data and Artificial Intelligence, the Pilgrim Experience Program, and the General Directorate of Passports.
This year’s pilgrimage is expected to begin on or around June 14 and conclude on June 19.
Jeddah governor launches initiative for a more balanced life
The campaign aims to raise parents’ awareness of the importance of work-family balance
It also aims to honor employers from various sectors who adopt sustainable practices reflecting their interest in the family and society
Updated 6 min 21 sec ago
Arab News
RIYADH: Jeddah Gov. Prince Saud bin Abdullah bin Jalawi inaugurated the work-family balance initiative on Sunday, organized by the Al-Mawaddah Association for Family Development under the slogan “Balance Your Life.”
The initiative began in the presence of Mohammed Al-Radi, the association’s general manager, along with several of the organization’s members, the Saudi Press Agency reported.
The campaign aims to raise parents’ awareness of the importance of work-family balance, and enhance interaction and cooperation among employers to promote family-supportive work environments.
It also aims to honor employers from various sectors who adopt sustainable practices reflecting their interest in the family and society, such as providing educational and welfare programs for children and the elderly.
The initiative also includes knowledge seminars to raise employees’ awareness of the importance of work-family balance and organizations’ awareness of creating a family-supportive work environment and adopting policies and programs that promote a balance between work and family life.
Al-Radi said: “This awareness initiative is one of several social initiatives and programs offered by the association to improve the quality of family life.”
Saudi forces participate in Eager Lion military drill in Jordan
Updated 47 min 41 sec ago
Arab News
RIYADH: Units from the Saudi Armed Forces are participating in the Eager Lion military drill, held in Jordan from May 12-23, with the involvement of the armies of 31 countries, the Saudi Press Agency reported.
The head of the Saudi Armed Forces Education and Training Authority, Maj. Gen. Adel Al-Balawi, explained that the exercise aims to exchange expertise and train on planning and implementing joint operations and missile air defense operations, as well as implementing counter-terrorism and maritime security operations to confront regional threats.
The Armed Forces, represented by the General Staff, the Joint Forces Command, and the land, air, sea, and air defense branches, are participating in the exercise.
Recently, the Royal Saudi Air Force concluded its participation in the mixed air exercise Desert Flag, conducted at Al-Dhafra Air Base in the UAE, alongside forces from several friendly countries.
The commander of the forces involved, Lt. Col. Adel bin Saeed Abu Malhah, said that the exercise, which lasts for three weeks, included the implementation of offensive and defensive air counter-operations and support for surface forces within new and complex scenarios under various threats.
He noted that the RSAF participated with six fighter jets from the F-15SA system with full air, technical, and support crews, conducting 80 daytime and night sorties and aerial refueling.
Botulism outbreak traced to mayonnaise at Riyadh restaurant
Saudi food authority discovers clostridium botulinum in Bon Tum brand product; ministry implements strict measures
Updated 12 May 2024
Ghadi Joudah
RIYADH: The Ministry of Municipal, Rural Affairs and Housing announced on Saturday that a Saudi Food and Drug Authority laboratory test had found clostridium botulinum in a Bon Tum mayonnaise brand used by the Hamburgini food chain.
Since the bacterium was discovered in a Bon Tum factory, the ministry has collaborated with the SFDA and other authorities to enforce additional measures beyond those previously implemented.
These measures include suspending the distribution of the mayonnaise product and withdrawing it from markets and food facilities across all cities in the Kingdom. They also include halting operations at the factory in preparation for implementing statutory procedures.
The bacteria that caused a Botulism outbreak was discovered in a Bon tum factory. (Supplied)
Any remaining quantities of the product at the factory across all batches and expiration dates have also been withdrawn, and all factory clients, including restaurants and food establishments, have been notified to dispose of any quantities they own.
The ministry has also issued instructions to continue the monitoring, investigation, and inspection campaigns across all cities of the Kingdom by municipalities and relevant authorities, ensuring the safety of food products provided to consumers.
Authorities have emphasized the importance of obtaining information from official sources and not being swayed by rumors and misinformation.
HIGHLIGHTS
• The botulism outbreak was first brought to light on April 27 when Riyadh municipality received a report of food poisoning cases linked to the Hamburgini restaurant chain.
• New measures undertaken by authorities include suspending the distribution of the Bon Tum mayonnaise product and withdrawal from markets and food facilities in the Kingdom.
• Any remaining quantities of the product at the factory across all batches and expiration dates have also been withdrawn.
• Authorities have emphasized the importance of obtaining information from official sources and not being swayed by rumors and misinformation.
Dr. Nezar Bahabri, infectious diseases consultant at the International Medical Center in Jeddah and the director of the Saudi Society of Medical Microbiology and Infectious Diseases in Jeddah, told Arab News that contracting illness through clostridium botulinum is very rare as it thrives in non-oxygenated (anaerobic) environments and is typically found in improperly preserved foods.
Dr. Nezar Bahabri, Infectious diseases consultant, International Medical Center
The bacterium produces a toxin that attacks the body’s nervous system, resulting in muscle weakness, blurred vision, difficulty speaking and swallowing, and eventually paralysis. Typically, the likelihood of exposure to this bacterium is low with modern food safety practices in place.
Bahabri said: “When this bacterium is ingested, and the toxin is released, symptoms will manifest within a few hours up to around two days.”
Mohammed Al-Awamy, a gastroenterologist, told Arab News: “Symptoms start in the face and then descend to involve the limbs and trunk. Respiratory failure ensues due to involvement of the respiratory system leading to cardiopulmonary collapse.”
The best measure to be taken is eating fresh and cooked food as the heat of cooking will kill the bacteria, and the toxin will become ineffective.
Dr. Nezar Bahabri, Infectious diseases consultant, International Medical Center
The symptoms of botulism, the illness caused by clostridium botulinum, are quite distinct and can be quickly recognized and treated with an antitoxin.
Bahabri explained: “If it was an injury, we will clean the wound and the infected tissue. If it is due to ingestion, we administer antitoxin, IV (intravenous) fluid, and painkillers as needed.”
Botulism is a life-threatening neurological disorder resulting in paralysis and death if not treated promptly.
Bahabri said that a patient must be admitted to hospital for observation, adding: “If the patient develops symptoms or weakness in the respiratory or lung muscles, we will transfer them to the ICU (intensive care unit) to put them in mechanical ventilation until the antitoxin works.”
Bahabri said that with proper treatment, the chance of a patient dying was less than 7 percent, adding: “The best measure to be taken is eating fresh and cooked food as the heat of cooking will kill the bacteria, and the toxin will become ineffective.”
The occurrence of clostridium botulinum infections is extremely uncommon due to the precautions taken in food preparation and handling. Therefore, it is important to stay informed about food safety guidelines and to be cautious when consuming canned or preserved foods.
The botulism outbreak was first brought to light on April 27 when Riyadh Municipality received a report of food poisoning cases linked to the Hamburgini restaurant chain.
The Ministry of Health said 75 people were affected in the outbreak, which included one death, and that no new cases had been recorded.
Dr. Mohammed Al-Abd Al-Aly, the Kingdom’s Health Ministry spokesperson, said on social media platform X: “The total number of recorded cases stands at 75, including 69 Saudi nationals and six non-Saudis.”
He also confirmed at the time that the only source of the contaminated food was from the local Hamburgini fast-food restaurant chain.
In response, health oversight teams promptly initiated an investigation and began monitoring the situation. By 10 p.m. on Thursday, all locations, branches, and the main catering factory of the restaurant chain in Riyadh were ordered to close.
Delivery services through the facility or via applications were suspended, and coordination efforts were initiated with key bodies, including the Ministry of Health, the Food and Drug Authority, and the Public Health Authority.
People reacted on social media platforms after the announcement of the lab results.
McDonald’s Saudi Arabia wrote on X: “We, at McDonald’s Saudi Arabia, assure everyone that we do not use, nor have we ever used, Bon Tum mayonnaise … No case of poisoning was detected in any of our restaurants, thank God, and none of our branches were closed during this entire period.
“We wish and pray for all those injured to recover quickly. May God protect our country and our honorable people from all harm.”
@MohammedLegandry wrote on X: “This mayonnaise is officially the cause of the poisoning cases that occurred. I think it is positive news for the sector as long as the problem is identified, and it limits the messages of weak-minded people, the writing and spreading of circulating rumors, frightening people, and causing panic.”
“We are reassured that government agencies are keen on the public health of individuals,” posted @Nnalshriii.
@Abusayel54 commented on X: “I hope that the factory will be defamed, closed, and fined.”
@iiuxr8 said: “Is the mayonnaise the main cause of poisoning, or poor storage? (by Hamburgini).”
Another user @Hamoooo11 wrote: “Food quality and safety is the role of the restaurant itself to ensure its products, even if they are sourced externally. Otherwise, what is the point of a specialist and quality controller in their facilities?”
The lucrative pearl trade in the past centuries contributed to the formation of a wealthy class in Farasan, whose trade led them to market pearls abroad
Little was known that the search for pearls were associated with hardship, fatigue, and risk for fishermen who spent long months diving, away from home
Updated 12 May 2024
Arab News
RIYADH: Farasan Islands’ Hareed festival, which concluded recently, marked the start of annual pearl fishing trips, an ancient skill and a major source of the islanders’ prosperity.
Ships once carried 30 to 40 islanders in search of pearls, a lucrative source of income in previous centuries.
Pearls played a major role in Farasan’s commercial and economic activity. (SPA)
Sheikh of the Farasan Islands, Mohammed bin Hadi Al-Rajhi, described the stages of preparation for pearl fishing trips, which began with the shipowner inspecting and preparing his vessel, and providing sailors’ homes with supplies and foodstuffs that will suffice their families for the duration of their absence at sea.
He also prepared food for the trip, including red corn or whole wheat, and drinking water stored in clay vessels.
FASTFACTS
• A pearl merchant, Suleiman Balaous, classified pearls according to size and weight.
• One variety, ‘Al-Dana,’ meaning round, is distinguished by its large weight, bright luster, and absence of flaws.
• Smaller varieties such as ‘Al-Mazouri,’ ‘Al-Ansar,’ and ‘Al- Badla,’ have irregular shapes.
Al-Rajhi, an expert on pearl fishing, added: “The beginning of the month of May witnessed the start of these trips that last for three or four months, which are the summer months when it is easy to obtain pearls, so the fishermen set sail to Al-Maaden (mineral) areas, which abound with oysters containing pearls.”
Ships once carried 30 to 40 islanders in search of pearls, a lucrative source of income in previous centuries. (SPA)
Once the deep dives begin, diving activities were divided over five days, with the first four days’ harvest going to the divers and the fifth day’s harvest going to the shipowner, he said.
Divers used a weight tied to one foot to help them descend to depths of 12 meters and more to extract pearls. The diver communicated with an assistant on the deck of the ship using a rope, which was also used to pull him back to the surface.
In return for this assistance, the diver allocated a portion of his harvest — known as “dangeel,” a net in which the oysters were collected — to the assistant as payment.
Pearls played a major role in Farasan’s commercial and economic activity. (SPA)
Diving would start following the fajr prayer, with work continuing until noon. Afterward, the crew would rest before beginning the “fulq” process, which involved opening the oysters, allowing each diver to inspect their daily harvest.
Referring to pearl sorting tools owned by pearl merchants at that time, Al-Rajhi said that merchants had copper sieves of various sizes, to sort large pearls from small varieties.
A pearl merchant, Suleiman Balaous, classified pearls according to size and weight. One variety, “Al-Dana,” meaning round, is distinguished by its large weight, bright luster, and absence of flaws.
Smaller varieties such as “Al-Mazouri,” “Al-Ansar,” and “Al-Badla,” have irregular shapes, while pearls harvested from the Farasan Islands are distinct from those in most pearl diving areas in terms of color and clarity, Al-Rajhi said.
The long months of pearl diving were associated with hardship, fatigue, and risk, and fishermen invented the folk songs of Al-Dana for entertainment. It has emerged as one of the oldest folk arts in Farasan, expressing the sailors’ longing during long absences searching for pearls.
The lucrative pearl trade in former centuries contributed to the formation of a wealthy class whose trade led them to market pearls in Gulf Arab countries, Europe, and particularly in India, which was a major pearl market.
Traders saw Eastern arts and inscriptions on buildings, which influenced their cultural and architectural ideas. They introduced these motifs to the Farasan Islands, where they were reflected in several wealthy individuals’ homes, particularly the two houses of Al-Rifai, one of which belongs to Ahmed Al-Munawar Al-Rifai and was completed in 1922, and the other belongs to Hussein bin Yahya Al-Rifai.
This also influenced the construction of the Najdi Mosque, which was completed in 1928 by Sheikh Ibrahim Al-Tamimi, popularly known as “Al-Najdi,” who worked in the pearl trade and was impressed by Eastern civilization due to his numerous travels to India.
Pearls played a major role in Farasan’s commercial and economic activity until the trade faded with the rise of agricultural and industrial pearls, becoming part of the islands’ heritage and ancient culture.
