Thursday, December 19, 2013

Birdman of Europe's Curonian Spit

RYBACHY (Kaliningrad), Russia: The 80-kilometer long finger of sand that curls along the Baltic Sea coast in Lithuania and Russia is wild and undeveloped. A closed military zone during 50 years of communism, the Curonian Spit and its shallow lagoon are key navigation points for hundreds of thousands of migrating birds who each year move through this great north European flyway. 

The Russian scientists at Bio Station Rybachy, midway along the spit, in November marked the 150th birthday of Johann Thienemann, the bird observatory’s German founder. Thienemann was the first ornithologist to ring birds as a means of studying their migration patterns. 

 
Thienemann, age 70, in field gear

A preacher’s son from Thuringia, Thienemann came to the remote stretch of East Prussia in 1896.  During his visit he observed more migrating birds than he ever imagined.  Returning home, he obtained high-level approval and funding. He came back to the Curonian Spit and in 1901 established the world’s first bird watching station. 

Thienemann headed the research center for 30 years, living the rest of his life on the spit, where he died in 1938. He was born November 12, 1863. 

When the illustrious scientist Alexander von Humboldt visited the dune in the mid-19th century he called it,  “one of the world’s most remarkable natural attractions.”  Others described it as Europe’s Sahara. The shifting dunes, blown by sea winds, are in places five-kilometers wide. The Curonian Spit was declared a World Heritage Site in 2000. 

             Curonian Spit and lagoon (Landsat/NASA image)


What Thienemann had discovered was the principal route for migrating birds traveling from as far away as the Black Sea and Africa. Bird migration routes hug coastlines and the spit’s wide, peaceful lagoon is a bountiful way station.  During peak spring and autumn migration times as many as one thousand birds fly along the spit each day.

The first birds Thienemann banded were black-headed sea gulls. Ringing had been devised sometime earlier by a Danish ornithologist, but it was Thienemann who put it into practice.  An estimated one million mostly small birds were banded at his station prior to the Second World War.

The epic battles in 1945 between the German and Soviet armies in East Prussia halted work at the research station and marked the end of seven centuries of German sovereignty. The Soviet Union obtained much of East Prussia as war booty. After two and a half million Germans fled or were expelled, Stalin systematically sought to expunge all evidence of German presence and the territory was repopulated with Russians. 

In the mid-1950s, Arctic ornithologist Lev Belopolsky from Leningrad was allowed reestablish the bird observatory. It remains today the biological station of the Zoological Institute of the Russian Academy of Science. The PhD researchers at the site carry on the work started by Thienemann.

My host at the station was Dr. Andrey Mukhin who shares his time between Rybachy and Kaliningrad University. He showed me the fine, almost invisible mist nets placed in the reeds close to the water. We retrieved for banding a male goldcrest, typical of the small migrating birds that fly by night and feed during the day.  Mukhin and his colleagues’ research is focused on magnetic fields, seeking an explanation to the still unanswered question of how birds navigate.



One study conducted at the station found that young storks held back two months from the departure of their flock still managed to find their way to rejoin others near the Black Sea more than 1,000 miles to the south.

Like most German graves in the territory, Thienemann’s was desecrated in the savage aftermath of war. The Russian scientists located his burial place in the wooded German cemetery and a new tombstone matching the original was placed over the grave.

 The village of Rybachy (formerly Rositten) is neglected and forlorn. Thienemann’s home is still lived in but in need of renovation. 

Thienemann’s home

Despite its rundown condition and shortage of funding, the bird watching station that Thienemann created still functions and welcomes international collaboration. The scientific work continues.  

If anything the natural beauty and wildlife of the Curonian Spit are even more spectacular now than during Thienemann’s time.   Fifty years of isolation works wonders.  The moose and elk herds have expanded.  There are large populations of foxes and wild boars.  And of course the birds still come in vast numbers, flying north and south with the seasons. #  



Sunday, December 8, 2013

Icy Wind from Toronto: Washington's Fresh and Green Closing

The Faces of Grocery Workers Losing Their Jobs


Barrington Marsh

Bill Fitzpatrick

Caleve Bright-Davies

Don Looney

Donald Andrews

Carol Holliday

Tony Brox

James Truesdale

Jenny Yliquin

Sally Nwabikwu

Shirley Middleton

Sally Crabbe

Mike Havey

Kwaku Kyeremateng

Tim Macleod

WASHINGTON: The cold wind from Toronto swept into Washington December 2d with the announcement by Natural Markets Food Group CEO Robin Michel that the Spring Valley store would close by the end of the month, perhaps as soon as December 15th. The unwanted Christmas present was a shock to the store’s 40 plus employees, several of whom have worked at the location for 25 years.

Michel, who came to the Natural Markets parent of Fresh and Green’s a year ago, was previously a top executive at Sears Holdings, run by billionaire investor Eddie Lampert, and before that at Giant Foods.

She said the closing of the six Fresh and Green’s stores in Maryland and DC acquired in the 2011 Super Fresh bankruptcy auction was “a very difficult business decision.” Despite the company’s best efforts, she said, the stores “remained unprofitable.”

Several Spring Valley store employees dispute the assertion that their store is unprofitable. Some suspect that the closure is an attempt by the Toronto-based hedge fund that owns Natural Markets to destroy the union, Local 400 of the United Food and Commercial Workers Union (UFCW). Cashier Sally Crabbe, a 27-year veteran at Spring Valley, predicts the site will eventually reopen as a non-union Mrs. Green’s, one of five brands in the Natural Markets portfolio.

In November, Natural Markets announced that company is in the midst of expansion and “taking the Mrs. Green’s concept” to several US and Canadian locations. The company has reportedly acquired a DC location near Dupont Circle. The Mrs. Green’s franchise emphasizes nutritious and organic foods, combining grocery shopping with take-away nutritious meals. Catalyst Capital, the company’s private equity owner in Toronto, says an initial private offering of Natural Markets shares is planned.

Catalyst Capital, the Toronto private equity shop headed by Gabriel de Alba, declares on its website that it is “a leader in active, distressed investing.” Its holdings include YRC trucking, a casino, and manufacturers. Catalyst Capital has been involved in food service since 2006 when it acquired in bankruptcy Richtree Market, the company that was the buyer of Super Fresh stores in 2011.

When Richtree/Natural Markets came to Washington, DC store employees agreed to a 10% wage reduction, the price for retaining the union as a bargaining agent. The current contract expires in June. Termination packages—if any-- have not yet been revealed.

Cashier Sally Crabbe is thankful that her health insurance continues until the end of the month as she is scheduled for cancer surgery before Christmas. Health plans for most employees termination January 1. Employees with long tenure include carry out assistants Donald Andrews, 27 years, and

Tim McLeod 22 years, and butcher Don Looney who has been with A & P and its successors for 50 years. The Spring Valley supermarket opened its doors in 1964.

The owners of the property, Robert and Paul Burka, attempted in a court filing to stop the Richtree/Natural Markets purchase. They argued that the Toronto firm had neither the experience nor the money to operate profitably.

Jeff Metzger, the publisher of Food World in Columbia, MD, wrote in 2011 that the Canadians had overpaid for the Super Fresh stores and that the operation “was doomed from the start.”

Matt Williams, then chief executive of Richtree/Natural Markets, assured employees and customers that the Spring Valley store would be extensively renovated, including the addition of a café and coffee bar. The promised renovations never occurred. #

Saturday, November 9, 2013

Adventure Bus Travel in Kaliningrad-Russia and Baltics


KALININGRAD, RUSSIA: The first problem is language. If you’re a Russian speaker, it’s easier. This sign at the Kaliningrad bus terminal tells the story.


 The destination beneath the number is ‘Bremen,’ the one at the bottom, ‘Tallinn’ and above that ‘Riga.’  There’s not a word in Latin script anywhere. Inside it’s no better as I found no one at any window who could speak English. I purchased a ticket to Elblag, Poland only by saying those words. Then the clerk wrote down the times of departure, I selected one, she wrote down the price and platform number.  The price was the ruble equivalent of $14.

Once aboard, it was a delight. Every seat was taken. Most of the passengers were young Russians who are studying Polish in Gdansk.  Most were no older than 17, two of my seatmates passed the time watching movies on iPads. 




Reaching the Polish and European Union border, all passengers had to get off. Our baggage was x-rayed and passports inspected. The process took nearly an hour.

But this trip was easy compared to my journey from Klaipeda, Lithuania to Zelenogradsk, the Russian resort town on the Baltic Sea. I had informed the driver that I wanted to get off at Rybachy to visit the world’s first bird ringing station, that since the Germans lost East Prussia after the second world war has been run by the Russian Academy of Sciences in St. Petersburg.

 Somehow the driver forgot and I didn’t see the turnoff sign that was in Cyrillic.  Soon we were among the high rises of Zelenogradsk and it was apparent I had come too far.  The driver was apologetic.  I had no choice but to get a cab the 18 miles back if I was to keep my appointment with the scientists at the bird station.

Luckily I found an English speaker who arranged a cab that charged a reasonable $20 to get me back to my destination along Northern Europe’s greatest untouched natural attraction, the 50-mile long sand dune called the Curonian Spit. 

Two unexpected animal sightings made the detour seem like we were in Yellowstone. Seeing a car stopped ahead of us, we also stopped to see a cluster of very large wild boars. 



A short distance ahead another car had stopped. There a mushroom picker was preparing to feed a red fox that had come by for a handout.



 Wildlife, including moose, is plentiful along the narrow wooded spit because the entire region was a closed military zone during Soviet times.

Klaipeda, the Lithuanian seaport at the top of the Curonian Spit, is a delightful town that deserves to be added to a list of adventure travel destinations. For 700 years the farthest German outpost in the Baltics, Klaipeda has been painstakingly restored and is now very much a European city with fashionable coffee houses and modern hotels.

I had reached Klaipeda via a four-hour bus trip from Riga, which until it was displaced by Vilnius (Lithuania) was the largest city in the three Baltic States.  Despite being a majority Russian-speaking city, all signs are in Latin script.

Riga is a crossroads for north-south, east-west travel and its bus station is situated adjacent to the largest outdoor market in the Baltics.

I started my trip in Tallinn, Estonia at the top of the Baltics. From a modern bus station, where most travelers had purchased their tickets on line, many buses daily head south to Riga, a short four-hour journey away. 



 The Baltic States collectively comprise an extraordinary economic and political success story.  They are modern, efficient and tourist friendly. Distances are relatively small and aside from July and August cities and resorts are not crowded. Kaliningrad, of course, is harder but well worth the effort. It is far more prosperous than on my last visit a decade earlier. The Russians are smart and welcoming, wanting very much to be part of the New Europe. 

 Barry Wood travels often in post-communist Europe. His book, A Bicycle Journey From Estonia to Albania, is coming in 2014.

Wednesday, October 30, 2013

Bare Bones Life for Estonian Pensioners

PARNU, ESTONIA. Enno Kuusmets is a sturdy Estonian who at age 77 has experienced tough times.



 Enno Kuusmets at Parnu’s bus station 

Born four years before the Soviets took over in 1940, his homeland in southeast Estonia was soon occupied by the invading Germans. His father was forced into the Wehrmacht. Enno remembers soldiers digging trenches in his yard as the Germans retreated from the siege of Leningrad.

The conquering Soviets punished Enno’s father with ten-years in a Siberian work camp. His health ruined by privation, he died two years after returning home in 1955. Finishing high school that same year, Enno’s family couldn’t afford bus fare for the 50-mile journey to Tartu for university entrance exams. His alternative was three years in the Red Army. Later he studied economics and moved to Parnu on the Gulf of Riga, one of four urban centers in Estonia.

“The worst times were in1960,” Enno recalls. Newly married, he remembers, “sugar was in short supply, the lines stretched for on for one kilometer and you waited all day for a ration.” Pay on the collective farm where he drove a truck was 50 kopeks per day. His family farmed a small plot and was allowed 20 chickens, one pig and one cow.

 Times were good in the 1980s, he says, until the failed reforms under Gorbachev triggered hyperinflation. “1991,” says Enno, “was a fateful year for me. I lost my wife and then I lost my money,” his ruble savings having become worthless.

Enno Kuusmets today lives in a two-room flat in a squat rundown building in the distant outskirts of Parnu. He survives on a pension of € 360 per month. That’s enough to get by but after paying for electricity, water, building fees, taxes and cable television he has about € 225 for food, bus fare and other expenses. He’s not able to save money to visit his son, a shopkeeper in Tartu. A diabetic, Enno suffered a four-month bout of pneumonia last winter.

                                               
                                                              Enno in his Parnu apartment

Since regaining its independence in 1991 Estonia has been a post-communist success story. Its open economy produced the programmers who partnered with Swedish investors to develop Skype, which under Microsoft still has a major facility in Tallinn. Estonia has a market friendly flat tax and the country has embraced information technology in ways few European countries have. Geopolitically Estonia is anchored in Europe and is a member of the European Union, and since 2011 the euro currency zone.

Enno Kuusmets is not complaining and savors Estonian independence. But he worries about young people as well as his elderly neighbors. Estonia is losing population and educated young people are the ones leaving in greatest numbers.

This county is the size of New Hampshire and Vermont combined but has less than 1.3 million people. In the five years since the 2008 economic crisis about 30,000 people emigrated from Estonia. While a small number, it is equal to over 2% of Estonia’s population. Most young people go to Finland, Britain and even Australia to find greater opportunity and higher incomes. Neighboring Finland is the preferred destination as its language is similar to Estonian and Finnish salaries are typically three to four times higher. The average monthly wage in Finland is € 3,200 compared to € 800 in Estonia.

Medicine and health care are severely impacted by emigration. In a nation with this low a population losing even five specialist doctors is a large problem. Estonia typically certifies about 150 new nurses each year. But in both 2010 and 2011, according to the ministry of social affairs, more nurses emigrated than graduated from nursing schools.

Parnu, waiting for a bus outside typical dwellings 

Some analysts challenge the assertion that emigration of the skilled and young is a problem. Rather, they say, the open labor markets within the European Union are positive as Estonians not only send remittances home but return with fresh skills. But make no mistake, times are tough in Estonia and not only for the elderly. Economic growth this year will be no more than 1.5%. The economy is not producing enough jobs and the 20 % youth unemployment rate is misleading because so many young job seekers have left the country.

Enno’s pension is generous compared to what is paid in the neighboring Baltic States of Latvia and Lithuania. But it is well below the € 800 to € 1,000 the European Union pays each month for the living expenses of university students participating in its Erasmus exchange program in member countries. #

Sunday, October 27, 2013

Greece..Economy Stabilizing

Thessaloniki: In the short-term more protests are coming. On November 6th, about the time the troika of Greece’s creditors arrives, a 24-hour general strike is planned. There will be more complaints that citizens have endured too much austerity and can’t take more. They’re wrong; much more needs to be done.

Greeks desperately need the structural reforms that will boost competition and bring down the high prices that daily afflict consumers who have seen their wages fall while supermarket prices are mostly steady. Analyst Miranda Xafa in Athens writes of, “an urgent need to improve the business environment by reducing red tape, regulatory obstacles and barriers to competition.” Examples, she says, are government-mandated rules prescribing who can sell what, dictating shop-opening hours, and setting unnecessary standards to limit competition from imports.

Economist Megan Greene, an astute observer of the Greek economy, relates a personal encounter with the over-regulated small business sector. Visiting a new bookstore cafe in downtown Athens, she ordered coffee and was surprised to see the waitress dart across the street to fetch the coffee. The owner explained that she couldn’t obtain a license to sell coffee. Wanting to buy a book, Megan was told she couldn’t because it was after 6 p.m. and books couldn’t be sold after six.

Prime Minister Samaras pledged in a recent speech at Washington’s Peterson Institute for International Economics “to replace red tape with a red carpet for foreign investors.” That’s a tall order as nearly half the members of parliament come from protected, privileged professions.

Greece’s leading economics think tank, IBOE, says the economy “is very near the stabilization point.” While a further 4% fall in gdp is likely this year, that projection is mildly improved from six months ago. There is improvement in public finance as both the trade and budget deficits have narrowed.

The biggest plus is the turnaround in tourism, a main driver of the Greek economy. Reassured by relative social peace this year and bargain hotel prices, tourists have been flocking into the country. 2013 is set to be a record year for both tourist arrivals and revenue. The tourist association says arrivals are up 15% and that 2014 should be even better. Tourism, it says, is likely to account for 35% of anticipated gdp and job growth over the next decade.

                                              Beans on sale at Thessaloniki outdoor market


Here in Thessaloniki, a commercial center rather than tourist destination, hotel prices are down at least 20%, a pattern replicated throughout the country. Unemployment approaches 25% while wage reductions have not been matched by price cuts, severely squeezing household budgets. With the economy in its 6th year of recession, a recent survey shows that many households will cut back on home heating this winter because they can’t afford heating oil. Statistics suggest that household incomes are down 40% from 2006 while house prices are down 35%.

This kind of internal devaluation, say troika economists, is the only way an economy can regain competitiveness when it is locked in a common currency zone. While doomsayers at the depth of the crisis predicted Greece would abandon the euro, such a drastic response was opposed by government and the public. A May 2012 survey showed that while Greeks opposed austerity, 88% wanted to remain with the euro.

An engineer I met on a Thessaloniki bus commented, “there is no question we lived far beyond our means after joining the euro in 2001.” His remark matches the assessment of Harvard economist Carmen Reinhart who observed that household debt in Greece exploded from 6% of gdp in 2001 to 50% in 2009. Low interest rates in a traditionally high inflation economy arrived in Greece with the euro. Not surprisingly, a borrowing binge was the result.

Reinhart also observes that Greece has been so profligate in public finance that it has been in default for half the 180 years since independence. Some time ago, a participant in the Greek financial rescue told me, “they have to become poorer.” Well, that happened. They are poorer. But contrary to expectations the government is taking the reform medicine. Greece has made considerable progress. But more hard work is required. #

Tuesday, October 22, 2013

Thessaloniki: Heart of Macedonia

Thessaloniki, Greece.  The Galerius Arch has been the eastern gateway into this pulsating port city since it was built in 299 A.D. commemorating the Roman emperor’s victory over the Persians.

The thoroughfare passing beneath the arch—the Via Egnatia—is even older. It dates from 146 B.C. and extends 400 kilometers from the Adriatic town of Durres across the mountains of Macedonia and then south to this magnificent city at the top of the Aegean Sea. The Via Egnatia was the second most important highway in the Roman Empire and the first to span the Balkan peninsula. It remains Thessaloniki’s principal thoroughfare.

It is tragic that a geo-political argument prevents Thessaloniki from being fully integrated with its traditional hinterland.  The problem is the rancorous, silly dispute between the Macedonian region of former Yugoslavia and Greece that has dragged on, impeding regional progress for two decades.  Athens argues that the Republic of Macedonia that emerged from Yugoslavia in 1990 is not entitled to be called Macedonia because the real Macedonia is in Greece.

So adamant is Greece that in 2008 it vetoed its vulnerable northern neighbor’s bid  to join NATO and continues to block Macedonia’s path to the European Union.

The Slavic Macedonians share the blame.  They have only a connection of geography to the ancient Macedonians, whose most famous son, Alexander the Great, died hundreds of years before Slavs even arrived in the Balkans.  It’s an insult that the Republic of Macedonia names the airport of its capital city Alexander the Great. Pursuing a fraudulent identity, Skopje has built statues to a Hellenic-speaking tribe with which it has no lineage.

Despite economic crisis, Greece allows the dispute to fester. This month brought more angry exchanges. The Greek prime minister accused Skopje of intransigence.  Macedonia’s prime minister countered, asking Greeks how they would feel if their country was called “the former Ottoman province of Greece,” a pointed reminder that Greece endured 400 years of Turkish rule.  Foolishly, Greece insists that in international organizations its neighbor is identified as FYROM, the Former Yugoslav Republic of Macedonia. 

A sensible solution is for Skopje to have the name Northern Macedonia. This would suggest that the Macedonian heartland is to the south in Greece and that only an accident of history resulted in the southern part of Yugoslavia having the same name.

Of course, strife and bloodshed are all too common in the Balkans and Thessaloniki has been a particular victim. Traditionally a melting pot of cultures and ethnicities, Thessaloniki endured the Romans and then the Turks who were finally beaten and driven out in 1912.  The victorious Greeks sought to obliterate all evidence of Ottoman rule, destroying all but one of the city’s minarets.  

Further outrage came under the Germans when the Nazis deported and killed Thessaloniki’s 50,000 strong Jewish community, which had flourished since receiving sanctuary from the Turkish sultan after being expelled from Spain in 1492.

Thessaloniki somehow manages despite the political standoff and rail and road delays at the Macedonian border.  But it would be so much more vibrant if it could resume its rightful place as the commercial center of an integrated, peaceful Balkan region, the beating heart of the Via Egnatia. #

Sunday, October 20, 2013

A Stunning Lack of US Support for the IMF

Thessaloniki, Greece.  Some years back, I wrote that the annual meeting of the International Monetary Fund in Washington was Davos on the Potomac. It is, but it is much more.  Held two out of every three years in the IMF headquarters city, it is a much larger and more important gathering than the World Economic Forum.  

Marco Annunziata of GE, formerly the chief economist at Italy's biggest bank, calls the IMF meeting "an extraordinary concentration of policy makers and market participants...an opportunity to take the pulse of the global economy."

Created in 1944 by the British/American partnership that led the western war effort, the IMF is in Washington because then President Roosevelt and his Treasury Department wanted to keep an eye on it. (They weren't sure the wily Brits who wanted US money could be trusted)  

As the Fund gathered strength in the 1960s making emergency loans to countries in distress, US dominance in the financial agency that has always been headed by a European became paramount.

It still is. Washington alone has a veto over all major decisions as votes are weighted in accordance with economic strength and the US accounts for over 16% of the total.

And so it was that this year's meeting took place while the US government was shut and its treasury secretary distracted by calamity.  Put in simplist terms, with finance ministers and central from virtually all the world's major economies in town, the US government presented itself as unable to produce a budget, a task the IMF identifies as basic. 

Embarrassment to describe the political gridlock is too mild. Shock was a more typical assessment from the high-powered visitors. Frustration with US dithering on global and domestic policy prompted editorialists at Xinhua in China to write that it is time for the global economy to be "de-Americanized." 

They also had in mind the disgusting refusal of the congress to even consider a replenishing of IMF resources that the Obama administration and over 180 IMF member countries agreed to  in 2010.  The lack of both congressional action and administration prodding is galling since it is essentially cost free to the US taxpayer. 

Myopic politicians in both parties fail to comprehend the extent to which the IMF promotes US goals of free markets, financial rectitude, and a rules-based open world economy. That China and former "third world" countries are demanding more say in the IMF should be seen as a triumph of US policy.

Indeed, some US officials privately support increased votes for emerging market countries, something the Europeans--overweighted in the IMF-- do not. Former Treasury official Tim Adams, who heads the Institute of International Finance, says "the old concept of the first world leading in the IMF is outdated." A determination to get more say in the IMF is one reason that seemingly disparate Brazil, Russia, India, China and South Africa have banded together as BRICS, creating their own credit lines with plans to create a development bank. 

The US remains the dominant world economy with its dollar the world's reserve currency. That privileged status shouldn't be taken for granted. With chronic trade and budget deficits, if the US were not respected, Washington could be like Greece coming cap in hand to the IMF for help. Far-fetched as that seems, it could someday happen.  Aware that the US is still recovering from its deepest recession since the 1930s, most policy makers abroad want the US to succeed. They recognize that robust growth and prosperity in the US is in their own interest.

But they also want an end to gridlock and a plan to bring our financial accounts into balance. Without this, US leadership in the global economy will continue to erode. #