9/13/2014
Too many cars
Dubai is a blindingly affluent city where Bentleys and Ferraris are nearly as common as Fords and Volkswagens. So it is no surprise that Dubai has a growing problem with traffic. The local rulers have explored all the conventional ways to get traffic moving again, including higher prices for parking, fuel and insurance. But at a recent conference in Hamburg, Hussain Lootah, director-general of the Dubai Municipality, revealed that the city might opt for a new approach: setting an income threshold for vehicle ownership.
This “income threshold” will allow only the wealthiest of Dubai’s residents to drive on the country’s high-speed highways. In other words, a salary limit will restrict car ownership to those earning above a certain monthly income. If you don’t make X amount of dollars, you will have to take one of Dubai’s luxury buses or other public transit options. A similar ban was implemented by another member of the UAE, Sharjah in 2008. Because of this ban, Sharjah people in 100 low-paid professions - nurses, cooks, carpenters, housemaids, watchmen, tailors, cafeteria waiters, unskilled labourers, gardeners and bakers, among others - can’t own cars and can’t get driving licenses either.
Mr Lootah’s approach is unlikely to be copied widely, but mayors of other big cities around the world are starting to think about taking drastic actions of their own, including outright car bans in inner cities. At some point they will run out of options: efforts such as inner-city tolls, pioneered by London and Singapore, or letting only motorists with certain number plates enter a city, as Paris did recently, might not be enough to reduce traffic and pollution. The problems will only get worse: the number of vehicles sold globally each year will grow from around 80m today to more than 100m by the end of the decade, according to IHS Automotive, a market research firm.
There are already a handful of car-free communities around the world. But these are typically small and often tourist destinations, such as Sark Island, in the English Channel, and Michigan’s Mackinac Island. The largest car-free urban area is probably Venice, where it is impossible to build roads and bridges to link the more than 100 small islands the city sits on.
Some cities are considering ways to limit core city access to “green” machines, such as battery-electric vehicles or plug-in hybrids. Hamburg is building a “GrĂ¼nes Netz”—a green network of parks, playgrounds, sports fields, bike paths and the like, which will allow pedestrians or cyclists to more easily navigate through the city. In other words, cars won’t be banned, but will get downgraded—a big deal in a country which loves its cars almost as much as America.
The number of cars is the “biggest challenge” for UAE’s future, explained Mr Lottah. “Everybody has their luxury life, but the capacity of our roads cannot take all of these cars without ownership laws.”
Mr Lootah dismissed the idea that residents could be encouraged to reduce car use through awareness programs, or carpooling.“There are more than 200 nationalities in Dubai,” he said. “I can’t see education and awareness having an effect, and soft regulations don’t work any more. Even in Europe and America it doesn’t work. Unless you go hard, no one will obey.”
Mr Lootah also encouraged residents to make greater use of public transport.“There are other alternatives — taxis, buses, subways. I will build more subways. We will expand it, station by station. We have buses, luxury buses — but the people don’t go for it because their cars are very cheap.”
Meanwhile, the mostly rich Emiraties and expats will keep their cars, whereas the mostly low-paid guest workers, who make up the majority of Dubai’s population, will have to settle for mass transit.
edited from The Economist and from The National UAE
9/07/2014
Wine Dealer Defrauded Clients
A well-known wine dealer was
sentenced on Thursday to 10 years in prison for defrauding wealthy clients out
of millions of dollars by selling bottles of purportedly rare wines that were
actually old bottles of wine mixed together.
The dealer, Rudy Kurniawan, 37, had
become a renowned figure in the rare wine scene, spending and making millions
of dollars on wine sales every year.
At a sentencing hearing on Thursday
in United States District Court in Manhattan, Mr. Kurniawan’s lawyer, Jerome H.
Mooney said, “Rudy wanted to be accepted and recognized” by an “elite group of
Burgundy tasters,” adding that his insecurity about his wealth and status got
him caught up in a fraud scheme that went too far.
Mr. Kurniawan sold fraudulent wines
mixed in his home kitchen complete with fake labels to some of the country’s
wealthiest people and leading wine enthusiasts. Mr. Kurniawan was able to make
them believe that his bottles were both real and rare because of his reputation
for an encyclopedic cellar and a finely tuned palate.
“Rudy Kurniawan planned and executed
an intricate counterfeit wine scheme,” said Preet Bharara, the United States
attorney in Manhattan. “Now, Kurniawan will trade his life of luxury for time
behind bars.”
In addition to prison time, Mr.
Kurniawan was ordered to forfeit $20 million and to pay more than $28 million
in restitution to his victims. Mr. Kurniawan, a native of Indonesia who has
been living illegally in the United States, faces deportation after the
completion of his sentence.
Prosecutors made their case using
evidence from a raid of Mr. Kurniawan’s home in Arcadia, Calif. His computer
contained files with scanned images of old wine labels, and bottles were
scattered all around his home.
His clients included the billionaire
William I. Koch; David Doyle, the founder of Quest Software; Andrew W. Hobson,
the chief financial officer of Univision; and others who spent millions on wine
over the last several years.
Mr. Mooney, in arguing for a reduced
sentence, said the impact of Mr. Kurniawan’s crimes was negligible.
“Nobody died,” Mr. Mooney said.
“Nobody lost their job. Nobody lost their savings.”
Judge Richard M. Berman interrupted
him to ask, “Is the principle that if you’re rich, then the person who did the
defrauding shouldn’t be punished?”
Stanley J. Okula Jr., a federal
prosecutor, said it was “quite shocking” that Mr. Mooney was arguing for a
different standard for those who have defrauded rich people. “Fraud is fraud,”
he said. “There is no distinction in the guidelines, or in logic, for treating
it differently.”
Mr. Kurniawan spoke briefly on his
own behalf, saying that he was sorry. The judge also read a letter Mr.
Kurniawan had written to the court, accepting responsibility for his actions.
But the judge seemed dubious about Mr. Kurniawan’s repentance. “I believe he’s
sorry about the position he’s in now,” he said.
Other factors that influenced Judge
Berman’s decision, he said, were the testimonies of three proprietors of French
vineyards, who said that the market no longer had faith in their vintage wines.
Mr. Kurniawan’s actions, the judge said, negatively affected trade relations
between the United States and France.
The defense said it was shocked by
the prison sentence and would file an appeal.
As for all of the expensive wine
that investigators found in Mr. Kurniawan’s cellars, the government is still
trying to figure out what to do with it.
Once the legitimate bottles are
separated from the fake ones, they might be sold. Some people have asked if
they can buy Mr. Kurniawan’s special blends to see if they can tell the
difference.
Said Mr. Okula: “The defendant
approached his victims saying he was selling them a Grand Cru. In reality, he
was carrying out a Grand Con.”
Photo: Ricardo DeArantanha/Los Angeles Times via Associated Press
edited from The New York Times
9/06/2014
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