Wednesday, October 22, 2025

Notes on Welfare Economy

From  DAVID GARLAND The Welfare State: A Fundamental dimension of of Modern Government

  • Five sectors of welfare governance
  • An essential part of the social and economic organization of modern capitalist societies
  • A mentality of government - emerged at the beginning of 20th century, was instituted across the developed world in tge aftermath of WW2. 
  • A form of social and economic administration rather than politics or ideology
  • To make capitalism viable









Welfare States and Welfare State Theory Andersen, Jørgen Goul

***
Welfare States and Welfare State Theory 
Andersen, Jørgen Goul 

In Western Europe, the first basic  pillars of social protection emerged around 1900, but the modern welfare state – a term coined in the early 1940s – developed from the 1950s to the 1970s. Social protection was extended to a broader range of social risks and services, coverage was widened to most of the population, and  compensation levels came to reach well above subsistence level. As a consequence, tax extraction  reached between one third and one half of the economy (GDP), occasionally more. Since the 1980s  welfare states have continued to expand, but typically without raising the rate of taxation. 

Welfare states have also developed in recently industrialized countries and in former communist 
countries, following the transition to market economy. Among significant “newcomers” China 
started developing a modern welfare state in the 1990s. Taking a broad view, the welfare state 
seems intrinsically linked to market economy and industrialism, as claimed by functionalist writers 
more than 50 years ago (Wilensky & Lebaux, 1958). However, different welfare models or “welfare 
regimes” can be traced back to the formative period. Since the 1980s or 1990s, most welfare states 
have undergone significant restructuring, recalibration or even transformation, but this has not 
eliminated “regime” differences.

In short, the welfare state modifies the impact of the market, by providing some sort of minimum 
guarantee (mitigating poverty); covering a range of social risks (security), and providing certain 
services (health care, child and elder care, etc.) – at the best standards available. Welfare states 
differ as regards the level of ambition and the mix between these aspects: Coverage may include a 
broad or a narrow range of risks and services, and minima may alleviate poverty or aim at providing 
equality




In Western Europe, the first basic pillars of social protection emerged around 1900, but the modern welfare state – a term coined in the early 1940s – developed from the 1950s to the 1970s. Social protection was extended to a broader range of social risks and services, coverage was widened to most of the population, and compensation levels came to reach well above subsistence level. As a consequence, tax extraction reached between one third and one half of the economy (GDP), occasionally more. Since the 1980s welfare states have continued to expand, but typically without raising the rate of taxation.

Welfare States and Welfare State Theory Andersen, Jørgen Goul z

Thursday, October 16, 2025

Data Centres

Data Centres
  • Capacity measured in GW (82-114 GW) no single number. 
  • Market size of $383 billion
  • Estimated pricing $217.30 per kilowatt (kW) per month
  • Over 11800 data centres around the world
  • Some of the largest players include Digital Realty, NTT
  • For example, Digital Realty has 2.8 GW
  • Demand drivers are - cloud, enterprise transformation (for the last 2 decades). And now AI>
  • High demand







At its simplest, a data center is a physical facility that organisations use to house their critical applications and data. A data center's design is based on a network of computing and storage resources that enable the delivery of shared applications and data. The key components of a data center design include routers, switches, firewalls, storage systems, servers, and application-delivery controllers.

"If you’re reading this, the words on your screen have already travelled from a data centre halfway across the world through thousands of kilometres of fibre optic or undersea cables, in just a fraction of a second. Whether you're streaming a movie, using cloud storage or chatting with AI, your data is being stored, processed and delivered by vast, energy-intensive digital warehouses called data centres."



What defines a modern data center?

Modern data centers are very different than they were just a short time ago. Infrastructure has shifted from traditional on-premises physical servers to virtual networks that support applications and workloads across pools of physical infrastructure and into a multicloud environment.

In this era, data exists and is connected across multiple data centers, the edge, and public and private clouds. The data center must be able to communicate across these multiple sites, both on-premises and in the cloud. Even the public cloud is a collection of data centers. When applications are hosted in the cloud, they are using data center resources from the cloud provider.


Network infrastructure. This connects servers (physical and virtualized), data center services, storage, and external connectivity to end-user locations.

Storage infrastructure. Data is the fuel of the modern data center. Storage systems are used to hold this valuable commodity.

Computing resources. Applications are the engines of a data center. These servers provide the processing, memory, local storage, and network connectivity that drive applications.




Types of Data Centres:

Enterprise data centers - These are built, owned, and operated by companies and are optimised for their end users. Most often they are housed on the corporate campus.
Managed services data centers - These data centers are managed by a third party (or a managed services provider) on behalf of a company. The company leases the equipment and infrastructure instead of buying it.
Colocation data centers - In colocation ("colo") data centers, a company rents space within a data center owned by others and located off company premises. The colocation data center hosts the infrastructure: building, cooling, bandwidth, security, etc., while the company provides and manages the components, including servers, storage, and firewalls.
Cloud data centers -In this off-premises form of data center, data and applications are hosted by a cloud services provider such as Amazon Web Services (AWS), Microsoft (Azure), or IBM Cloud or other public cloud provide



Market size of c. $383 billion

Global data center capacity is approximately 114 gigawatts (GW) in 2025, with the United States and China together accounting for around 70% of the total.

Global data center pricing rose 3.3% on a weighted inventory basis year-over-year in Q1 to $217.30 per kilowatt (kW) per month













Some estimates claim there are over 7 million data centers globally

Data centers located next to robust fiber optic and power infrastructure, large population centers and in business-friendly states are most attractive to customers

Data center operators make money by leasing or licensing power and space.



--

For example,

Digital Realty:








DRC

 









At the time of its independence (1960), its population was c. 15 million. Today it is 109 million people.

GDP $79.12 billion

primary sector: 44.2%

industry: 22.6%

services: 33.1%


More than 350 ethnic groups with more than 700 local languages and dialects suggest ethnic fragmentation and a lack of integration, although this is supposed to be overcome through the use of four main languages throughout the country for business and military communication.3



  • Area: DRC is the second-largest country in Africa (after Algeria) and the largest in Sub-Saharan Africa — roughly the size of Western Europe.

  • Population: ~110 million (2025 est.), making it the 4th most populous country in Africa (after Nigeria, Ethiopia, Egypt) and among the top 15 in the world.

  • Resources: Holds an estimated $24 trillion worth of natural resources, including 70% of the world’s cobalt, vast copper, coltan, diamonds, gold, uranium, hydropower, and rainforests.

So yes — it’s among the biggest countries by both size and population to remain so persistently troubled.


In the case of the DRC, copper, diamonds and other lootable and non-lootable minerals have played the most important role in the economy since the second half of Belgian colonialism in the early 20th century. The Congolese state was heavily dependent on mining earnings throughout its existence. The technical aspects of mining have changed significantly over time: while in the 1960s extraction was based on the latest technology available in Belgium, the deterioration of the sector began in the mid 1970s and it totally fell apart during the 1990s. The mode of extraction shifted to artisanal mining. This cannot be explained by the 'resource curse' argument


Thus, the minerals would have to change their 'character' from being a curse to being a developmental blessing, as they are in Botswana.

Meanwhile, the economy:

"The economy of the Democratic Republic of Congo (DRC), which started as the most industrialized nation in sub-Saharan Africa at independence in 1960, has declined dramatically due to political instability, conflict, and corruption."


From US intel in 1968 reflecting on post independence Congo:

 There is little hope, however, that the Congo can reverse the trend and acquire either the capital or the skills needed to support a significant econɔmi.c development program. Indeed, the prospects favor moderate economic deterioration over the next few years. The lack of administrative, technical, and managerial skills will continue for many years to be the highest barrier to economic recovery and growth. An adequate number of skilled expatriates cannot be induced to work in the Congo because of the absence of physical and economic security. Al though many native Congolese are being trained, a decade or more wil) be required before there are enough of them to make a difference. Large amounts of aid would be necessary to restore the transport network, to increase agricultural output, and to reintegrate scattered centers of economic activity. But aid of the required magnitude is not likely to be found. Although substantial assistance from Belgium and the United States is expected to continue, most of this is required to maintain current levels of activity. Private foreign capital investment will continue to be discouraged by internal instability and by relatively unattractive prospects in both the domestic market and the world market for the country's most exbloitable resources. Since Congolese tax rates are already among the highest among the underdeveloped countries, prospects for increasing local funds for restoration and development are dim.

At independence, Kinshasa inherited one of the most advanced economies in sub-Saharan Africa, with well-integrated and efficiently run infrastructure, abundant natural resources, thriving agriculture, and an expanding mining sector. But there were no native Congolese in the upper echelons of either government or business, and it took more than 100,000 Бelgians -- administrators, mining engineers, plantation owners, technicians, and teachers -- to hold the complex economic structure together.


*

Another document


While the Belgian colonial state forcefully created a rational state in Congo that gained some authority over patrimonial societies, it also created a small group of people that were to become the elite in charge of the state after independence. This group, however, had no experience in political organisation and split immediately after independence. Several political and military rivals challenged the newly independent state until Mobutu was able to create an elite consensus by buying in or crushing rival groups. This consensus resulted in nine years of state-building, but then started to crumble and eventually break down under serious economic pressure and outside intervention. State power was gradually eroded until even the monopoly of legitimate violence was lost. Unsolved questions of citizenship and land entitlements fuelled outside intervention, which eventually crushed the Congolese state altogether. 



It’s helpful to think of Congo’s history not as a series of disconnected horrors, but as a continuum of extraction:

PeriodForcePurposeConsequence
1500s–1800sAtlantic slave tradersHuman labour for plantationsDepopulation, social collapse
1700s–1800sArab-Swahili tradersSlaves, ivory, domestic serviceRaids, displacement, terror
1885–1908King Leopold IIRubber and ivory for European industryMass death, terror, forced labour
1908–1960Belgian colonial stateCopper, uranium, mineralsContinued subjugation and economic dependency

The form changed — from slave ships to concession companies — but the dynamic remained: outside powers saw Congo as a source of wealth, not a society.




**

Here

 ET

We need to talk about Africa. With major wars raging in Sudan and the Democratic Republic of Congo, increased Chinese and Russian activity, jihadi terrorists gaining ground in many places, and American foreign aid on the chopping block, the failed U.S. policy in Africa is past due for some new thinking.

To think clearly about Africa, we have to discard some accumulated nonsense and illusions that get in the way. To begin, we must drop the myth, endlessly promoted by the NGO-industrial complex of consultants and activists, that the struggle between democracy and dictatorship defines the continent’s politics. If only this were true. In reality, democracy has essentially collapsed in much of Africa. According to Freedom House, only 8% of Africans live in countries that can be called “free.” There are no signs that this trend is going to reverse.

The idea that economic potential makes Africa a continent of the future that we neglect at our peril is deeply misguided. Africa has grown economically, and that growth will continue. Should Africa ever realize its potential, Americans will pay it more attention. But until that happens, Africa’s hypothetical future riches will command little attention from the American public. As it is, Africa’s economic importance to the rest of the world revolves around its mineral resources and commodity production. That was true 100 years ago and will likely be true for some time.

//Africa’s nominal GDP is about USD 2.8 trillion (across all its countries). SAfrica, Egypt, Algeria largest. 1.47 billion people. 

What are the real issues we need to consider? The first is the power vacuum. In 1884-85, 13 European nations and the U.S. met in Berlin to set up rules to govern what contemporaries called the “scramble for Africa.” Decolonization in the 1950s and 1960s brought formal independence to most of Africa, but European influence (supplemented in places by American power) remained dominant for decades.

That era ended during the Biden years with Russia’s overthrow of what was left of the French sphere of influence, but weak African governments for the most part still rely on outsiders. We are now watching another scramble for Africa. China, Japan and India are all looking to carve out zones of economic influence. In places such as the Horn of Africa, the Sahel and Libya, countries such as Russia, Turkey and the United Arab Emirates are increasingly meddling in conflicts, overthrowing governments, or supporting local political movements. The U.S. abstained from the first scramble for Africa. Should it do the same in the sequel? The U.S. could be drawn into the game whether it wants to or not by concerns about jihadist violence or interest in rare-earth minerals in places like Congo.

Weak African states face increasingly existential challenges. The question is less whether particular countries are democratic or not, and more whether they have governments that can actually work. Congo has never really controlled all of its own territory, and in many other places daily life goes on without much presence of national authority. In Ethiopia and Sudan, the power of central authorities is challenged by regional and tribal rebellions. In other places, “tribalism”—which would be called “nationalism” elsewhere—is gaining traction as the artificial postcolonial states enter their sixth or seventh decade of comprehensive failure.

// daily life goes on. Our need to see the world in our forms, our ways of government, our ways of organisation. But more importantly a respect for rights and liberty. But life seems to go on and grow irrespective that the country has a functioning government or not. The daily struggles are closer to the existential struggles of food, shelter. The human creature persists and exists, irrespective of circumstances. But the world that knows better, or has seen the range of worse to better knows what's waht. It is a huge negotiation of power and responsibiltiies and accountabilities... between the external world and the affected people. In the case where large swathes of people dont even know except that something's fundamentally wrong with life... how do they champion for themselves. And where is the responsibility of external world in that case?? And can responsibility be delivered with a detached ownership? That investment and ownership, yet detachment with power... like that of a teacher.

The international scramble for influence and internecine ethnic conflicts often play into the other big African story: the contest between Christianity and Islam. Since the end of the colonial era, Christianity has spread across much of sub-Saharan Africa. Now the two religions confront each other in an arc from western Africa down to Mozambique. In some places relations are cooperative and even cordial. In others, religious differences add fuel to existing ethnic and economic conflicts. Where jihadist groups have weaponized Islam in a quest for power, actual wars of religion are possible.

Americans have real interests in Africa, including access to critical minerals, containing radical Islam, checking the ambitions of geopolitical rivals, promoting global health and simply expressing humanitarian solidarity. What happens in Africa matters.

At the same time, many traditional U.S. policy instruments don’t work well in Africa. Neither economic-development efforts nor democracy promotion have had the desired results. Armies trained and supplied by the U.S. have turned against Washington in some countries. The NGO-industrial complex that feasted on American development aid has fallen prey in too many cases to fashionable wokeism and is often therefore no longer a useful tool of state policy.

Giving foreign aid to failing states served the U.S. reasonably well during the Cold War. We will need to do better in the times that are coming.



// Just for comparison. Africa has 1.47 billion people. India has 1.4 billion people. India GDP is $4.3 trillion. Very different land mass and resources. But institutions and systems allow for growth and entrepreneurship. First stop is security of state and freedom of people to pursue enterprise. That seems to be lacking in most of Africa.


the first and most essential public good any state must provide is security and freedom of action. Without those, population size and resource wealth remain latent potential — like seeds on bare rock. With them, even resource-poor societies (like Japan, Singapore, or Israel) can achieve extraordinary prosperity.

Africa’s long-term future will hinge less on how many minerals it has or how many babies are born, and more on whether it can build strong, impartial institutions that guarantee safety, enforce contracts, and create a stable field for human ambition to unfold.

Dag Hammarskjöld

Following from internet:
  • Born 29/7/1905
  • He was a son of Hjalmar Hammarskjöld, who served as Prime Minister of Sweden from 1914 to 1917.
  • He served as the second secretary-general of the United Nations from April 1953 (In other words, he took over an office which had already been given form and an administrative apparatus which had acquired a certain amount of tradition.)
    • until his death in a plane crash in September 1961. (which is debated even now whether ...)
    • Fully aware of the magnitude and complexity of his task, he devoted himself to it completely, exerting all his determination and strength in carrying it out. In a private letter written in 1953 he says: “To know that the goal is so significant that everything else must be set aside gives a great sense of liberation and makes one indifferent to anything that may happen to oneself.”
    • From the very first he placed great importance on the solution of disputes through the medium of private discussion between representatives of the individual countries, pursuing what has come to be known as the “method of quiet diplomacy.” There is, of course, nothing new in this, as informal meetings of this kind have always been and will always be an important part of the work necessary to achieve agreement between conflicting views
    •  In every situation with which he was faced he had one goal in mind: to serve the ideas sponsored by the United Nations. He called himself an international civil servant, with the emphasis on the word “international.”5 As such he had only one master, and that was the United Nations.
  • Some disputes he settled:
    • The first and most important disputes which fell to his lot to settle arose in the Middle East. The first of these was the conflict between Israel and the Arab States in 1955. As the representative of the UN, he succeeded in easing the tension by negotiating an agreement between each of the parties involved and the UN, setting up demarcation lines and establishing UN observation posts. Personally he did not believe that the relaxation of tension would prove permanent, and he was right in his surmise.
    • In the following year, in September of 1956, the conflict that arose between Great Britain, France, and Egypt, after Egypt had nationalized the Suez Canal, was submitted to the Security Council. 
    • He also made a major contribution to the solution of a crisis between Lebanon, Jordan, and the Arab States in 1958. In this, both the United States and Great Britain were involved.
    • The concept of peace contained in the UN Charter was always to remain Dag Hammarskjöld’s guiding principle in tackling such problems as that presented by the liberation of the Congo on June 30, 1960.
  • Economist. He had studied widely, and his knowledge ranged far beyond his chosen field. His special subject, however, was regarded as economics, in which he took his doctor’s degree in 1934, with a thesis entitled “Konjunkturspridningen.”1 He had by then already obtained degrees in philology and in law - Expansion of Market Trends.
  • Hammarskjöld was and remains well regarded internationally as a capable diplomat and administrator, and his efforts to resolve various global crises led to him being the only posthumous recipient of the Nobel Peace Prize. The Nobel Peace Prize 1961 was awarded to Dag Hjalmar Agne Carl Hammarskjöld "for developing the UN into an effective and constructive international organization, capable of giving life to the principles and aims expressed in the UN Charter"


Dag Hammarskjöld was exposed to criticism and violent, unrestrained attacks, but he never departed from the path he had chosen from the very first: the path that was to result in the UN’s developing into an effective and constructive international organization, capable of giving life to the principles and aims expressed in the UN Charter, administered by a strong Secretariat served by men who both felt and acted internationally. The goal he always strove to attain was to make the UN Charter the one by which all countries regulated themselves.

Today this goal may seem remote; as we know, it is remote. Dag Hammarskjöld fully realized this, and in a speech in Chicago in 1960 he said:

“Working at the edge of the development of human society is to work on the brink of the unknown. Much of what is done will one day prove to have been of little avail. That is no excuse for the failure to act in accordance with our best understanding, in recognition of its limits but with faith in the ultimate result of the creative evolution in which it is our privilege to cooperate.”

The speech -  "It is probably Hammarskjöld's best exposition of his perspective on the United Nations, and on his own office of Secretary-General, as part of a creative evolutionary process in the development of international institutions."

His driving force was his belief that goodwill among men and nations would one day create conditions in which peace would prevail in the world.


**
Suez Canal - Is owned by Egypt.The Suez Canal (/ˈsuː.ɛz/; Arabic: قناة السويس, Qanāt as-Suwais) is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia (and by extension, the Sinai Peninsula from the rest of Egypt). It is the border between Africa and Asia. The 193.30-kilometre-long (120.11 mi) canal is a key trade route between Europe and Asia. 
The canal officially opened on 17 November 1869.
The canal was the property of the Egyptian government, but European shareholders, mostly British and French, owned the concessionary company which operated it until July 1956, when President Gamal Abdel Nasser nationalised it—an event which led to the Suez Crisis of October–November 1956.
The canal is operated and maintained by the state-owned Suez Canal Authority[6] (SCA) of Egypt. Under the Convention of Constantinople, it may be used "in time of war as in time of peace, by every vessel of commerce or of war, without distinction of flag."[7] Nevertheless, the canal has played an important military strategic role as a naval short-cut and choke point. Navies with coastlines and bases on both the Mediterranean Sea and the Red Sea (Egypt and Israel) have a particular interest in the Suez Canal. After Egypt closed the Suez Canal at the beginning of the Six-Day War on 5 June 1967, the canal remained closed for eight years, reopening on 5 June 1975


**

Congo

The Congo episode was a turning point in UN history — and the first time it used military force in a decolonization context. Here’s why:

Background: A rushed independence and chaos

  • The Belgian Congo (modern-day Democratic Republic of the Congo) was one of the most brutally exploited colonies in Africa. Under King Leopold II and later the Belgian state, it suffered enormous violence and resource extraction.
  • Under pressure from Congolese nationalists and the global decolonization movement, Belgium abruptly granted independence on 30 June 1960 — with almost no preparation. Only a handful of Congolese had higher education or military experience, and the state apparatus was weak.
  • Within days, the Force Publique (army) mutinied, provinces like Katanga (rich in minerals) declared secession with Belgian support, and Belgian troops re-entered the country “to protect their citizens,” in practice propping up separatists and mining interests.
  • Congo’s new Prime Minister, Patrice Lumumba, and President, Joseph Kasavubu, appealed to the UN for help. The Security Council responded quickly
  • First use of armed force in a decolonization context: The UN acted not against an aggressor state, but to defend a newly independent state from colonial interference and fragmentation.
  • Test of self-determination: The crisis was seen as a battleground between true independence and neo-colonial control.
  • Shift in UN peacekeeping: ONUC set precedents for future operations — including the principle that UN forces could use force to protect sovereignty and prevent the reversal of decolonization.
  • UN was founded 24/10/1945
  • Why Congo was a first: Because it was the first major post-colonial crisis where a newly independent state’s sovereignty was threatened by colonial powers attempting to retain influence, and the UN stepped in — even militarily — to uphold the principle of decolonization

 When the Congo achieved its independence on June 30, 1960, it was constituted as a unified state. Kasavubu7 was elected president and Lumumba8 was made prime minister. Lumumba had always supported the idea of a unified Congo.The new government was faced with a difficult situation: the administration, which had been in Belgian hands, had broken down; the army had mutinied; a large proportion of the white population had fled; Belgian troops had intervened – in part to protect the white inhabitants; and on July 1, the province of Katanga declared itself an independent state. All these factors – the collapse of the administration, the mutiny of the armed forces, and finally Katanga’s secession from the rest of the Congo form the background for the request made to the UN by Kasavubu and Lumumba on July 1 for civil assistance and on July 12 for military aid. In a cable dispatched on July 13, Lumumba emphasized that UN military assistance was needed to protect the Congo against an attack by Belgian troops.


It was the first time that the UN used armed force to intervene actively in the solution of a problem involving the termination of colonial rule. In the resolution unanimously adopted by the Security Council, Belgium was ordered to withdraw her troops from Congo territory, and the Secretary-General was authorized in consultation with the Congo government to provide whatever military aid proved necessary until such time as the country’s own forces were, in the opinion of the Congo government, in a position to carry out their functions.

As the days and months went by, their position became no easier. All conceivable obstacles to the success of the UN’s Congo venture seemed to pile up: disagreement among the Congolese themselves on the question of unified state or confederation, the support Katanga received from Belgium, Soviet aid to Lumumba, the dissolution of the central government, the military rule under Mobutu, the murder of Lumumba, increasingly violent Russian attacks on Hammarskjöld and UN action. A complete account of all that occurred cannot be given here; but an examination of the available documents covering this period will establish that it was the United Nations alone that worked to realize the establishment of the Republic of the Congo as an independent nation, and that the man who above all others deserves the credit for this is Dag Hammarskjöld.

In the calm and dignified answer which Dag Hammarskjöld made to the Soviet leaders, he said that he would remain at his post as long as this was necessary to defend and strengthen the authority of the United Nations. And he added: It is not Soviet Russia or any of the great powers that need the vigilance and protection of the UN; it is all the others.


**

His speech

In fact, international constitutional law is still in an embryonic stage; we are still in the transition between institutional systems of international coexistence and constitutional systems of international cooperation. It is natural that, at such a stage of transition, theory is still vague, mixed with elements of a political nature and dependent on what basically may be considered sociological theory.

What seems imperative is to push forward institutionally and, eventually, constitutionally all along the line, guided by current needs and experiences, without preconceived ideas of the ultimate form.

When the United Nations was created, the founders had the experience of the League of Nations and also the experience of such a highly evolved constitutional pattern as that established on the American continent. A strong influence from both these experiences can be seen in the Charter of the United Nations.

The system we find in the United Nations has its strength and its weakness. In the light of the experiences of fifteen years, undoubtedly some changes of the pattern would be made if the Charter were to be revised. These changes, however, would probably not refer to the various organs as such, but rather to their relative authority--that is to say to the division of responsibilities-and to their methods of operation.  


// his speech is so much about the problem of organisation. Form, function, and how best to organise for maximum efficiency and sustainability

The two risks indicated call for careful thought before we push much further forward. We must seek the optimum balance between a system with a large number of autonomous bodies and aa system with strong concentration of tasks within a lesser number of organizations. The way will have to be found by trial and error, but planning is necessary because of the difficulty to take a step backward or to change fundamentally what once has been established. Probably, new forms will have to be devised, not only, as already indicated, for an integration of activities among autonomous organizations, but also for the delegation of powers within this or that organization without a breaking up of its inner unity.
 and the case I have described, therefore, highlights one of those essential complications which characterize in the constitutional field the effort to work in the direction of organized international cooperation. At an experimental stage, such difficulties may be faced on a day-to-day basis, but in the long run they are likely to require imaginative and constructive constitutional innovations. 

For example. The Secretary-General of the United Nations is the chief administrative officer of the Organization and, as such, the only elected member of the Secretariat. The founders of the United Nations may in this context have looked to the American Constitution. The chief of any government, or the Chief Executive of the United States, has the assistance of a group of close collaborators who represent the same basic approach, and to whom he therefore can delegate a considerable part of his responsibilities. On the basis of universality, especially in a divided world but generally speaking as long as nations have opposing interests, no similar arrangement is possible within the United Nations. This may have been understood in San Francisco, but I guess that it was felt that it did not matter too much as the Secretary-General had mainly administrative responsibilities. However, the position of the Office of the Secretary-General within the United Nations, explained in part by the fact that he is the only elected officer in principle representing all members, has led to increasingly widespread diplomatic and political activities. 



Perhaps a future generation, which knows the outcome of our present efforts, will look at them with some irony. They will see where we fumbled and they will find it difficult to understand why we did not see the direction more clearly and work more consistently toward the target it indicates. So it will always be, but let us hope that they will not find any reason to criticize us because of a lack of that combination of steadfastness of purpose and flexibility of approach which alone can guarantee that the possibilities which we are exploring will have been tested to the full. Working at the edge of the development of human society is to work on the brink of the unknown. Much of what is done will one day prove to have been of little avail. That is no excuse for the failure to act in accordance with our best understanding, in recognition of its limits but with faith in the ultimate result of the creative evolution in which it is our privilege to cooperate.

Monday, October 13, 2025

Cruise Economics

A cruise includes at least one night on board a seagoing vessel having a capacity of at least 49 passengers. 


Largest Cruise Companies:
  • Royal Caribbean (USA) $82.74 billion market cap; Revenue of $17.18 billion. Earnings $4.97b
  • Carnival Corporation (US) $36.36 billion market cap; Revenue of $25.97 billion. Earnings $3.1 b
  • Viking Holdings $25b market cap, rev of $5.8b; Earnings $1.16
  • Norwegian Cruise Line $10.22 billion market cap, revenue of  $9.56 billion, earnings of $1.38b

APCD - Available Passenger Cruise Day. For Royal Caribbean 53.3million expected in 2025.
 Occupancy ("Load Factor"), in accordance with cruise vacation industry practice, is calculated by dividing Passenger Cruise Days (as defined below) by APCD. A percentage in excess of 100% indicates that three or more passengers occupied some cabins.

Royal Carribbean


In a year, food expense of ~1 billion. Payroll of $1.3 billion. Fuel is 1.1 billion. 





Largest Cruise ship

World's largest cruise ship has a capacity of 8000 passenger (Royal Carib), across 20 decks. ? Maynot be 8000 pass only. Because on their website:

Other fleet






And such, generally smaller than above.

  • Royal Caribbean Group global fleet: 68 ships across five brands  (main brand around 28-29)
  • Carnival Corporation & plc (Parent Company): Operates a total fleet of over 90 ships across its multiple brands, including Carnival Cruise Line, Holland America Line, Princess Cruises, and others. 



34.6 million ocean-going cruisers globally in 2024
*8.5 million in royal carribean


North America is by far the largest!







Average length of a cruise is 7.1 days


https://cruising.org/sites/default/files/2025-07/State%20of%20the%20Cruise%20Industry%20Report%202025.pdf

(This includes indirect impact)


es: The cruise sector comprises more than 50  cruise lines and 250 ships. Nonetheless, major corporations dominate the cruise market, with a few large companies holding significant market shares. Carnival Corporation, for instance, is estimated to control about 37% of the global market, followed by Royal Caribbean Cruises LTD with 24% and Norwegian Cruise Line Holdings with 14%. These corporations operate multiple brands and collectively generate substantial revenue, driving the industry’s economic engine (e.g. in 2023, Carnival raised over $24 billion in revenue) (Table 1).70 Currently, these three corporations still account for 75% of the global market share. 71





 From the mid-19th century, liner services supported long-distance passenger transportation between continents, particularly between Europe and North America. The need to accommodate a large number of passengers of different socioeconomic statuses for at least a week led to the emergence of specific ship designs radically different from cargo ships, where speed and comfort (at least for the elite) were paramount. The concept of cruising emerged in the early 20th century, when a few custom-designed ships or converted cargo vessels began offering luxury cruises to individuals willing to pay the fare.


Launched in 1990, the S.S. Prinzessin Victoria Luise, a HAPAG ship, is credited with having been the first purpose-built cruise ship. Seasonal itineraries were designed to keep the ships used, covering Norway and the Baltic in the summer and the Mediterranean and the Caribbean in the winter.

The rapid growth of the modern cruise industry can be traced to the demise of the ocean liner in the 1960s, as it was replaced by fast jet services, making liner services uncompetitive. The last liners became the first cruise ships, following the complete demise of liner passenger services, as it was realized that air transport assumed long-distance travel. 

The modern cruise industry was, to a certain extent, pioneered in Greece by Epirotiki Lines in the mid-1950s. Its expansion strategy was restricted by the demand limits of the East Mediterranean market, resulting in itineraries to the Caribbean being added as an alternative. The founding of Norwegian Cruise Line (1966), Royal Caribbean International (1968), and Carnival Cruise Lines (1972), which have remained the largest cruise lines, along with the presence of a major passenger source market, led to a rapid focus on the United States and the Caribbean. This affluent market provided the foundation for the remarkable growth and expansion of the cruise industry. 

approximately 600 ports

 In 2000, 7.2 million people took a cruise. Only 3.8 million people had done so in 1990. In 2004, this number exceeded the 10 million passengers threshold.. In 2019, more than 28 million passengers cruised worldwide.In 2024, a record 34.6 million people boarded a cruise vessel, with the 40 million passenger threshold expected to be surpassed by 2027.

40 million people taking a cruise generated more than 220 million passenger movements in cruise ports worldwide. Thus, cruise passenger movements are a key metric that matters most for cruise ports and are increasingly used in related industry reports. (Given they visit ports 5-6 on one trip)


While in the 1990s, cruise ships rarely exceeded 2,000 passengers, by the 2010s, ships of 6,000 passengers were being deployed. 



The order book indicates that, by 2026, a total of 23 new cruise ships accommodating over 5,000 passengers will be in operation, while more than 50 ships are on order to be delivered by 2036.


https://porteconomicsmanagement.org/pemp/contents/part7_1/ports-and-cruise-shipping/


The cruise industry has a very high level of ownership concentration, as the four largest cruise shipping companies account for 78.9% of the market (Carnival Lines, Royal Caribbean, MSC Cruises, and Norwegian Cruise Line). High levels of horizontal integration are also observable since most cruise companies have acquired parent companies but retained their individual names for product differentiation. Carnival Corporation controls almost one-third (32.8%) of the global cruise market with its ten different brands. In comparison, Royal Caribbean accounts for 26% of the global market, serviced under six different brands, including Celebrity Cruises, which caters to higher-end customers. The two brands of MSC (MSC Cruises and Explora) represent an 11.9% market share, while Norwegian Cruise Line (NCL) Holdings owns three different brands representing 9.4% of the market. Approximately 85 additional cruise lines are currently in operation.






https://pmc.ncbi.nlm.nih.gov/articles/PMC7519395/