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  • 1. 2 0 1 1G L O B A L I S S U E S I N P E R S P E C T I V E q1
  • 3. i s s u e 1 6 2 0 1 1G L O B A L i s s u e s i n P e R s P e C T i V e 18 easy does iT 32 charging ahead 56 Power surge Saudi Arabia’s status as a global business destination Electric transport, a rapidly accelerating sector of the Nuclear energy is undergoing a resurgence aroundcontinues to climb, as reflected in the 2011 World Bank Ease automotive industry, can combine excitement with efficiency the world, as booming populations and development createof Doing Business index. and economy. unprecedented power demands. 22 comPeTiTive advanTage 36 Budding genius 60 The redux of luxe The 2011 Global Competitiveness Forum, with the Excellence might come easily to child prodigies but The improved outlook for the global luxury market istheme of innovation as a competitive advantage, gathers how do parents ensure their precocious children become set to continue, but not without facing up to some significantinternational leaders in business, politics and intellectual fields. well-adjusted adults? challenges. 28 humane naTure 41 innovaTion and ingenuiTy 64 eco TriP THINK talks exclusively to best-selling author, Young Saudi inventor has a bright future ahead of him, Eco-friendly tourism is expanding from niche into theentrepreneur and dedicated activist, Paul Hawken, about the with numerous patents and software creations at just 23 years mainstream, with more businesses and governments seeingsuccess of his business, social and environmental ventures. of age. the green light.06
  • 4. “innovaTion is The sPecific Tool of enTrePreneurs, The means By which They exPloiT change as an oPPorTuniTy for a differenT Business or a differenT service” PeTer DruCker, SoCIAL eCoLogIST 68 some like iT hauTe The world may still be reeling from suggestions of regulars OpiniOna double-dip recession, but high fashion marches on 13 sPecTrum 42 whaT do you Think?regardless. The latest news and creativity from around the globe Students discuss the merits of e-learning 75 Profile 47 Thinking forward 76 caughT on camera Natalia Allen, design entrepreneur, bridges the divide between In our post-crisis business environment, companies are adjusting We unveil the best images and speak to some of design and activism their strategies to become more agile, responsive and accountablethe winners from the THINK and SAGIA photography 83 fuTure Thinking 48 scTa PresidenT sPeaks To Thinkcompetition. An ambitious plan for mass-scale solar power HH Prince Sultan bin Salman, president, Saudi Commission 85 Books for Tourism and Antiquities, on Saudis cultural responsibilities The best reading material reviewed for you 52 Think roundTaBle 86 visionary Leaders from the world of arts and culture discuss the global Nick Pope, ufologist, on what space has to teach humankind appeal and economic value of national heritage treasures 07
  • 5. COVER PHOTOGRAPHYSpring-Arrival by MohsenMohammed al-Danjani SAGIA eDITorIAL ADvISor Fahd M Hamidaddin eDITorIAL LIAISoN Aseel A Al-Zamil mOTIVATE PUBLIShING eDITor-IN-CHIef Obaid Humaid Al Tayer grouP eDITor + MANAgINg PArTNer Ian Fairservice grouP SeNIor eDITor Gina Johnson grouP eDITor Catherine Belbin CHIef Sub eDITor Iain Smith eDITorIAL ASSISTANT Belinda Igaya geNerAL MANAger grouP SALeS Anthony Milne geNerAL MANAger – ProDuCTIoN + CIrCuLATIoN S Sasidharan ProDuCTIoN MANAger C. Sudhakar DePuTy ADverTISeMeNT MANAger Omar Al Eit DeSIgN Design Studio INTerNATIoNAL CorreSPoNDeNTS Ashlee Beard, Laura Collacott, Glenn Freeman, Steve Hill, Elsa Mclaren, Joanne Molina, Lisa Vincenti SAuDI ArABIAn GEnErAL InVESTMEnT AuTHOrITy (SAGIA) C SAGIA HEADquArTErS Imam Saud Bin Abdulaziz road (university road), PO Box 5927, riyadh 11432, Kingdom of Saudi Arabia, T +966 1 203 5555 F +966 1 263 2894 E M SAGIA InTErnATIOnAL OFFICES Y MIDDLe eAST & AfrICA Hatem A Al-Ahmad; e CM euroPe Mai Al-Torki; e MY frANCe Lucile Pons van der Slikke; e ITALy Mai Al-Torki; e CY gerMANy Dahlia T rahaimy; e CMY uNITeD kINgDoM Sara bouzo; e K THe AMerICAS Ahmed Islam; e WASHINgToN DC Ahmed Islam; e eAST ASIA Noriko Sozuki; e WeST ASIA Meshari S. Al-khaled; e MOTIVATE PuBLISHInG HeAD offICe Po box 2331, Dubai, united Arab emirates T +971 4 282 4060 f +971 4 282 4436 e Abu DHAbI e LoNDoN e: InTErnATIOnAL MEDIA rEPrESEnTATIVES AuSTrALIA okeeffe Media; e CHINA/HoNg koNg emphasis Media Limited; e CyPruS epistle Communications & Media; e frANCe/SWITZerLAND Intermedia europe Ltd; e gerMANy IMv International Media Service gmbH; e INDIA Media Star; e ITALy IMM Italia; e JAPAN Skynet Media Inc.; e Turkey Media Ltd; e uNITeD kINgDoM Spafax Inflight Media; e uNITeD STATeS redwood Custom Communications Inc.; e PrINTINg Emirates Printing Press, Dubai Motivate Publishing LLC, on behalf of Saudi Arabian general Investment Authority, publishes THinK quarterly. SAgIA and Motivate Publishing do not accept liability for errors or omissions contained in this publication for whatever reason, however caused. The opinions and views contained in this publication are not necessarily those of SAgIA or of the publishers. SAgIA and the publishers take no responsibility for the goods and services advertised. All materials are protected by copyright. All rights are reserved. No part of this publication may be reproduced in any material form whatsoever without the written permission of the copyright owner, except as may be permitted by applicable laws.
  • 6. eDiT q1 2011THinK glOcalIncreasingly, nations not traditionally associated with innovation are adapting and implementing new technologies, especially information technologies, social media and telecommunications, in becoming creatively and globally competitive. A case in point is the Global Competitiveness Forum 2011, hosted by SAGIA in Riyadh, where the organisers have used the latest technology to pioneer one of the first e-forums of its kind, leveraging tablet computing and sophisticated networking. In the new de-centralised global community, countries not historically associated with innovation and thought leadership are beginning to take the lead. In Asia, this is happening in a range of sectors including manufacturing. This is also exemplified in the Middle East, where governments are slowly but surely diversifying national revenue sources outside of petrochemical industries. Further examples of this are the new breed of inventors emerging within the Kingdom and also its foray into automotive manufacturing. Similarly, Saudi Arabias dynamic ministers are adopting social media such as Facebook and other relevant digital media platforms, to access new channels and create dialogue in search of effective solutions for the new globalised Kingdom. In this issue of THINK, our editorial focuses on the increasingly prevalent phenomenon of glocalisation. The term has gained broad acceptance from the international business community in recent years, having been adapted from Japanese business practices. Indeed, the word is derived from the Japanese word dochakuka, which literally means global localisation. Our international correspondents address numerous issues of increasing global concern, from a broad spectrum of topics within the worlds of business, science, technology and culture. This diversity of thoughts, discussions and opinion reflects the increasing convergence of these themes and the ever-broadening implications of events around the world on the lives of global citizens. Whether locally, globally or in a glocal combination of the two, this first issue of THINK for 2011 encourages you to think glocal.Catherine Belbin, Group Editor LINA SALeH MALAIkA 011
  • 7. the rightplace at the right time wriTTen By sTeve hill An unusual entrant at the top of thecountries to visit in 2011 list, some royalwedding-inspired short breaks in Londonand a boost to organic farming in Saudi Arabia are all on the agenda 013
  • 8. PHoTo by MArIo TeSTINo/CLAreNCe HouSe PreSS offICe vIA geTTy IMAgeS/gALLo IMAgeS. specTrum royal connections The british royal wedding in April between Prince William and kate Middleton is expected to spark a large increase in tourist numbers to London. And short-break specialists Superbreak leading The way has reacted by launching a series of geTTy IMAgeS tailor-made wedding packages that include a stay at a range of three to five- star hotels in the centre of the capital as well as a trip on the London eye and a indra Nooyi, the chief executive of PepsiCo the Indian Institute of Management and was and chief executive of Gulf One Investment two-for-one dining card. since 2006, has been named number one in the employed by Johnson & Johnson in Mumbai Bank, was ranked 24. Financial Times’ list of the top 50 women in before moving to the United States to study Legendary US TV talk show host Oprah world business for a second successive year. at Yale. Winfrey was designated as the newspaper’s lighting Up Born in Chennai, she completed her MBA at Saudi national Nahed Taher, the co-founder woman of the decade. The world’s biggest LeD media facade has been installed at the king’s road Tower in Jeddah by french company Citiled. The Place To Be The 10,000 square metres screen alBania is the country to visit in 2011, covers 21 floors on the north and south according to travel company Lonely Planet, sides of the building as well as 16 levels which is extolling the virtues of a destination on the west facade, and features more customarily regarded to be off the beaten path. than five million LeDs which can display The Mediterranean country boasts heritage up to 16.7 million different colours. sites, beautiful beaches, fine food and a warm More than six months were needed welcome, according to Lonely Planet’s latest to produce the innovative system, which book, Best in Travel 2011. is almost transparent, guaranteeing Brazil, which is set to host the 2014 World daylight for the building’s occupants, and Cup and the 2016 summer Olympic Games, installation and testing took six months. is listed in second place with Cape Verde, off The dynamic “skin” can display a wide the coast of Africa, third, Panama fourth and range of content and messages including Bulgaria fifth. graphic, artistic, cartoons, videos, news, The top 10 also includes Vanuatu (sixth), photos and events. Tanzania (eighth) and Syria (ninth). 014
  • 9. Organic agreement organic farming in Saudi Arabia has been boosted by an agreement between gTZ Saudi Arabia and the Morarka foundation, of India. A delegation of senior officials from the Saudi Agricultural Ministry and farmers recently visited certified organic farms at bhuj, where the foundation has been working since the 2002 earthquake, and farm lands in rajasthan. Technical assistance is to be offered to Saudi farmers regarding the planning of organic agriculture, development of technology and training, as well as management expertise, record maintenance and certification. Worldwide, 30.4 million hectares of land is now used for organic production, generating global trade of uS$38.6 billion.geTTy IMAgeS/gALLo qaTar kicks major goal qaTar recenTly won the right to host football event is watched by an estimated 700 who said that Qatar’s win was a victory for the the FIFA World Cup 2022, winning the bid ahead million people worldwide, and is expected to entire Arab world. of the United States, Japan, Korea and Australia. benefit the country and the entire region. In a statement issued after Fifa’s announcement, Qatar led in the ballot on each of the four Qatar has promised to spend US$50 billion Sheikha Moza said: “The importance and usefulness rounds, obtaining 14 votes against eight to the on infrastructure upgrades and US$4 billion to of this event cannot be overstated…it represents US in the final round. build nine stadiums and renovate three others. a historic opportunity to show the Middle East’s For Qatar, the GCC and the Middle East, this A leading proponent of Qatar’s successful bid openness to the West and to help further promote Berth control represents enormous opportunities. The global was HH Sheikha Moza bint Nasser Al Missned, dialogue among civilisations and cultures.” Saudi Arabia is expected to see a 50 per cent increase in the number of marina berths by 2012, according to a recent study by leading industry consultancy ToP gear Mike Derrett Marine. The nation’s rapidly growing leisure The recent Riyadh Motor Show attracted fleet and an upsurge in overseas boating more than 96,000 visitors over its five-day run tourists are helping spark this growth, while deals worth around US$60 million were making the marine sector an important signed by international car accessories and investment opportunity for domestic and services companies. foreign markets. The event, at the Riyadh International Saudi Arabia, which recently Convention and Exhibition Centre, also played host to the second edition of its generated around 2,000 applications to international boat show, currently boasts participating financing companies for car 10,000 vessels measuring five metres or reservations, on top of deals concluded at the more in length, and trails only kuwait in stands of automotive dealers. terms of boat population in the gCC. The Kingdom is the largest auto market in More than 130 internationalCourTeSy of LexuS the Middle East region and the fifth largest in companies and brands were represented the world for auto parts, accessories, service at the show, staged at the Al furusya and garage equipment. Marina & yacht Club in Jeddah. 015
  • 10. specTrumFinancialSolutionsParticipants from 35 countries took partin a two-day global investment forum atthe king faisal Conference Hall at theriyadh Inter-Continental Hotel. Saudi Investor Window 2010showcased how Islamic finance couldbecome a solution to the world financialcrisis. London-based uCI Internationalco-organised the event with the Saudi-based Islamic International foundation foreconomics & finance (IIfef) and Motamara. “Increasingly, Western and Asiangovernments and business leaders areturning to Islamic finance to providefinancing for major international projectsin response to the global credit freeze,”said Tahar benourrad, uCI’s chairman.Debate heats UpA series of recent climate change-relateddisasters around the world highlight mena growTh PredicTionthe need for stronger action to reducegreenhouse gases, according tointernational lobby group The series of natural disasters includesome of the worst wildfires ever recorded growTh in The MENA region is forecast to outpace the global Property prices in Egypt grew 10 per cent in 2010, according toin the Middle east, flood-related crises average in 2011, signalling the property sector is ripe for investment. Global Property Guide, with similar growth forecasts for South America and the recent cold The International Monetary Fund is predicting gross domestic Property prices in some parts of Saudi Arabia surged as much as 40weather experienced in the uk and product will expand 5.1 per cent in the MENA region in 2011, higher per cent in the second half of 2010, according to Banque Saudi Fransi,europe, some of the iciest conditions than the forecast global average of just 4.2 per cent. and will likely continue to appreciate in the New Year.experienced in 100 years. “All of these The MENA region is expected to be second only to Asia in terms of “There is still a lot of cash on the sidelines, but there are opportunitydisasters are taking place with just annual growth, with economies of the region expanding at more than costs to keeping liquid cash. Investors will now be weighing up their390 parts per million of Co2 in the double the pace of advanced nations, including Europe and the United options about where to invest next year, and property is shaping up toatmosphere,” said bill Mckibben, author States. be one of the best performing sectors,” said Ziad El Chaar, managingand founder of “Physics and Property sectors in Saudi Arabia, Lebanon and Egypt are all expected director of DAMAC Properties.chemistry have laid their cards on the to report double-digit growth in 2011. Lebanon’s Director General of The region is also getting a boost from Qatar’s successful 2022 Worldtable: above 350 [parts per million of the Economy Ministry, Fuad Fleifel, predicts property prices in Beirut Cup bid, with Shuaa Capital predicting Qatar may spend close to US$90Co2 to oxygen], the world doesn’t work.” will rise another 15 per cent in 2011. billion on housing and infrastructure in the lead up to the Beginsat home with the anonymous Saudi investor.Saudi Arabia features the greatest landmark In April, a French court ruled that Saudi-number of charitable societies andfoundations in the gCC, according to hoTel sold backed JJW Hotels & Resorts would have to pay US$130 million to Starwood Capital toa report published by the International settle a dispute involving the aborted sale ofCentre for research and Studies. a ProminenT Saudi investor, part of Le Crillon to JJW. “gulf Charity Work: A first Information the Kingdom’s royal family, has successfully The price paid by the buyer, described as anreport” reveals that 86 per cent of such purchased the Hôtel de Crillon in Paris. “eminent” member of the Saudi royal family,bodies are based in the kingdom with The luxury hotel, built in the Champs has not been disclosed. However, Reutersthe remaining in kuwait, bahrain, Qatar, Elysees area in 1758 after being commissioned quotes a source close to the sale in estimatingthe uAe and oman. by King Louis XV, has long been the subject of the sum at over US$328 million. Just over 25 per cent of charitable legal wrangling over the sale. Groupe Concorde, the prestige hotel unit ofaction is aimed at the poor, with almost Groupe du Louvre, a unit of Starwood Groupe du Louvre, will continue to operate the18 per cent concentrated on orphans Capital, which acquired the hotel in 2005, hotel on behalf of the new owner over a six- toand 16.4 per cent on the disabled. confirmed it has now agreed on sale terms 12-month period.016
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  • 12. invesTmenTseasy does iTSAuDI ArAbIA CAN be rIgHTLy ProuD of ITS MANy ACHIeveMeNTS IN THe PAST yeAr, buT 01 eMAAr ProPerTIeSIT refuSeS To reST oN ITS LAureLS AND IS IMPLeMeNTINg eveN More reforMS AIMeD ATSIMPLIfyINg DoINg buSINeSS IN THe kINgDoM.wriTTen By joanne molinalasT November, the Saudi Arabian General InvestmentAuthority (SAGIA) was pleased to announce that the country has Chevron Phillips Chemical (United States), Alcatel-Lucent (France) and BUPA Investments (Britain). SAGIA and GE signed an MOU to pilotdramatically improved its ranking in the World Bank Report Ease of innovative and sustainable technologies in Saudi Economic Cities in June cost of startingDoing Business Index 2011. From the 183 countries surveyed for the 2010. a business in us$report, Saudi Arabia made significant progress by moving up to 11th “Cisco recognises the visionary leadership and ambitious reform 9000place from the 67th place in the global ranking it occupied in 2005. programme that has brought about an improved business environment It was able to sustain and improve its position as a global investment in Saudi Arabia as well the great potential this environment offers for 8000destination ahead of 172 countries this year, while some of its neighbouring, businesses and citizens alike. As one of our key focus countries, our 7000like the UAE, Bahrain and Qatar moved down the rankings. strategy is to work with both the government as well as private sector This accomplishment is just one among many for the Kingdom this organisations to support continued development and growth.” says Dr 6000year. In addition to being honored by the World Bank as the fifth fastest Badr Al Badr, managing director of Smart + Connected Communities, 5000reformer over the past five years, its major reforms make the country a Asia and Africa, Cisco Systems International. 4000much more attractive investment destination. The Kingdom moved up Saudi Arabia’s improvement in the World Bank’s Ease of Doingto 11th place from 13th in the World Bank Report due to reforms to Business 2011 Index ranking was driven by major reforms, including the 3000enforce commercial contracts and investor protection. Finally, the 2010 elimination of the minimum capital requirement for starting a business, 2000UNCTAD report ranked Saudi Arabia as the eighth largest recipient of streamlining the processes for starting a business and creating theFDI, attracting over US$36 billion. This meant major global corporations foundations of a competitive internal credit market. 1000commencing significant operations – GE, Alcatel, BUPA and CISCO. “We are extremely pleased to improve our ranking and continue to 0 Top corporate investors in Saudi Arabia over the past five years were be recognised as one of the easiest countries to do business with on a 2006 2010018
  • 13. 01 King Abdullah Economic City (KAEC).02 Proposed residential villas in the new age KAEC, Saudi Arabia.03 The proposed harbourside financial district of KAEC.04 Artist’s impression of the massive biosphere of King Abdullah International Gardens (KAIG). 02 03 04 global basis. Saudi Arabia has been very successful at attracting a steadily When asked why Saudi Arabia’s recent success would be good for the growing flow of foreign investment since 2005, which contributed to the world, Al-Dabbagh explained: “At one point during his speech at the country’s rapid and sustainable economic growth,” says His Excellency 2009 Global Competitiveness Forum, Michael Phelps said: ‘There are no Amr bin Abdullah al-Dabbagh, the Governor of SAGIA. limits to my life.’ I thought this was a very profound statement at the time, “Saudi Arabia is already ranked as the easiest place to do business and still do, and still think about it quite often. Most people I imagine in the entire MENA region and now we are keen to compete in the took the obvious view – given who he was and what he had just achieved reduced time to start a international arena. We are pleased that Saudi Arabia’s efforts to reform – that we can accomplish almost anything we dream of and set out to. But business to 5 days have been recognised by the World Bank and the country moved up in that’s not how I understood it. I understood it to mean that my life does40.0 the rankings yet again this year. not begin and end with my own physical boundaries, but that I have an35.0 “According to the World Bank, about 85 per cent of economies made impact on the world beyond myself.” it easier to do business in the past five years, with Saudi Arabia ranked as “What I do has a reach, perhaps an enormous one, on a vast, remarkable,30.0 the fifth fastest reformer. This is a testimony to our work over the past five often delicate and certainly complicated tangle of living beings, my children25.0 years on the creation of a pro-business environment, a knowledge-based included. When we set out to be among the top 10 most competitive20.0 society and the development of new world-class ‘Economic Cities’.” nations in the world, we weren’t competing against anything but our ability15.0 The World Bank Ease of Doing Business 2011 Index analysed regulations to become our own personal bests in light of certain well defined standards10.0 affecting nine areas of the life of a business across 183 countries, including that have and will continually evolve, and that theoretically will bring 5.0 starting a business, dealing with construction permits, registering sustainable national and global prosperity,” he continues. 0.0 property, getting credit, protecting investors, paying taxes, trading across “I think it was in the mid-1980s when Michael Porter said that the 2006 2010 borders, enforcing contracts and closing a business. concept of resource productivity would give us a new way at looking at 019
  • 14. invesTmenTs eMAAr ProPerTIeS 01 Cthe full-system costs as well as the value associated with every product stakeholders involved including His Majesty Custodian of the Two Holy we are Mwe create. ‘Full system costs’ and ‘value’ – that’s what I’m trying to Mosques King Abdullah, the Ministry of Commerce, the Shoura Council exTremely Yunderstand. What value our product can bring the world, the costs and chambers of commerce across the country. CMassociated with both delivering and not delivering it, and the impactconstantly improving it will have.” The results of these reforms are already overwhelmingly positive. The New Regulations data from the Unified Center for Commercial Pleased To MY The numerous impacting reforms undertaken by SAGIA and the Registration shows that during the months of March and April 2010, 429 imProve our CYNational Competitiveness Centre (NCC) were part of a co-ordinatedprogramme to simplify and reduce the cost of a variety of key business companies registered. For the period of March 1-April 14, the Center saw registration of approximately 43 companies per week and the average cost ranking and CMY conTinue Kprocesses. Although no one reform creates an impact on its own, two was almost US$1,500. For the period after April 17, the Center saw anreforms have had more transformational impact on doing business inSaudi Arabia than the rest. average of 71 companies register per week, with the cost being US$1,000 for every company. The average processing time for all companies was 2.5 To Be The first is the elimination of the capital requirement for starting a business. days. A sizeable number (nearly 15 per cent) were registered in one day, recognisedin many counTries, a minimum capital requirement for and over 90 per cent of companies were registered in under three days. Going forward, there are numerous strategies for more reforms. One of as one ofstarting a business represents a key barrier for aspiring entrepreneurs the main initiatives will be communication as SAGIA needs to continue The easiesTto start their businesses. In 2006, the minimum capital requirement wasapproximately US$125,000, today entrepreneurs and small businesses in to communicate the impact that reforms have had on Saudi Arabia. There is still a knowledge gap between the impact and systems that have counTries ToSaudi Arabia benefit from a zero minimum capital requirement. recently been put into place and the business community. SAGIA and the do Business This reform along with a dozen others have resulted in a simplificationof the process to acquire a new business license from 39 days to just NCC will work to inform and communicate key changes. Additionally, SAGIA and the NCC will be focusing on a key set of wiTh on afive and a reduction in the cost to the entrepreneur from US$8,530 to reforms that address the issues that still place the Kingdom outside of the gloBal Basis.US$1,000. The result is a rapidly increasing number of business formed top 50 in the world, as well as continue to aim for recognition of reforms amr Bin aBdullah al-daBBagheach year from 3,400 in 2006 to nearly 5,100 in 2009. that have not been fully acknowledged by the World Bank. For example, The second most important reform was the amendments to the getting credit, closing a business and dealing with construction permitsExecutive Regulations for the Commercial Lien Act. In February 2010, are all important indicators that will be highlighted in the future.the Minister of Commerce and Industry passed that will materially The top priority, however, will be to drive reforms that continue toimprove the process of getting credit for Saudi businesses by providing a decrease the amount of time and procedures necessary to enforce acentralised registry for lien records, clarifying the priority of certain types contract. This has been a long standing initiative of SAGIA and the NCC,of creditors and improving procedures for settlements. These reforms as exhibited through the following actions: hiring new judges, developingform the foundation for a competitive credit market as they reduce the case management systems, establishment of commercial courts and therisk facing potential lenders and will unlock the flow of capital to small development of the electronic court management system.and medium-sized businesses. All of these have made enforcing contracts easier, but SAGIA hopes to However, some reforms were particularly challenging. The elimination continue to build on and develop a more efficient process by continuingof the capital requirement was a significant accomplishment by the to roll out electronic case management systems, and track enforcement 01 Planned indoor-outdoorKingdom, due to the complex nature of the previous law and the countless and judgments times to ensure the process is getting more streamlined. walkways for KAIG.020
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  • 16. THinK WOrlD evenT“ innovaTion is the specific tool ofentrepreneurs, the means by which they exploit change as an opportunity between alternative forms of energy and capitalism. The world’s leading scientists and physicists also gather to explore how enquiries about outerfor a different business or a different service. It is capable of being space can offer innovative forms of problem solving. Innovations inpresented as a discipline, capable of being learned, capable of being social media, heavy industries and “greenovation” will also be explored.practiced. Entrepreneurs need to search purposefully for the sources of In line with the themes of innovation and eco-awareness that underpininnovation, the changes and their symptoms that indicate opportunities this year’s GCF, the event is a paperless forum. Through the use of iPadsfor successful innovation. And they need to know and to apply the and a sophisticated networking solution, delegates and guests will be ableprinciples of successful innovation.” Peter Drucker, social ecologist to search and send messages, communicate and request meetings with “Innovation as a Means of Competitiveness” is this year’s theme at the other registered GCF members.fifth annual Global Competitiveness Forum (GCF), the first e-forum of its In their presentations and panel forums, the esteemed guests explorekind. The GCF is held in Riyadh, Saudi Arabia, under the patronage of HM the meaning of competitiveness and innovation and discuss how theseKing Abdullah Bin Abdulaziz, the Custodian of the Two Holy Mosques. definitions impact the ideas and principles that guide their organisationsStill celebrating two of Saudi Arabia’s most recent great achievements: and businesses, both at the present time and in the future.comPeTiTiveadvanTageIN THe MoDerN WorLD, THe CoMPANIeS AND orgANISATIoNS THAT INNovATe ANDeMbrACe MoDerN CoNCerNS, SuCH AS eNvIroNMeNTAL AWAreNeSS, AND THeNSeek THe ANSWerS To THeSe ISSueS Are beST PLACeD To ProSPer.wriTTen By joanne molinabeing recognised as the 11th most competitive investment destination in innovaTion, comPeTiTivenessthe world, according to the World Bank’s Ease of Doing Business Report, and The markeTPlaceand being recognised as the eighth largest recipient of foreign direct “I agree with the approach of the Global Competitiveness Forum. Iinvestments globally, according to the United Nations Conference for think of competitiveness in terms of pillars – for example, technological,Trade and Development (UNCTAD), this tremendously successful year company and national competitiveness. Companies are competitive whenfor the Kingdom is reflected in the GCF’s 2011 programme. they demonstrate a product or service offering that is scalable, sustainable Founded in 2006 by the Saudi Arabian General Investment Authority and makes a lasting impact on the way people live. Competitive countries(SAGIA), the conference originated as a gathering of informational and share in common a community and culture of investment, risk takingcommunication technologies (ICT) experts, including Bill Gates, to discuss and innovation,” says Linda Rottenberg, CEO of ICT enables competitiveness, the GCF grew through the financial crisis In 1997, Rottenberg co-founded Endeavor with the goal of makingto tackle the world’s most important competitiveness issues. Its mission is emerging market countries more competitive on the global stage byto foster awareness and enthusiasm around the issue of competitiveness, increasing the competitiveness of its highest-potential businesses. “I’mand to evaluate the applicability of competitiveness theory and practice as pleased with the results,” she says, “but as I often say, we’re just gettinga tool for generating real solutions to contemporary global challenges. started.” The 2011 GCF programme continues to be the only event of its kind, She explains how emerging markets are becoming the future ofhosting global business leaders, international political leaders and selected innovation. “In general, the most innovative and potentially path-intellectuals and journalists to create a dialogue about the positive impact breaking business ideas do not come from large, established companies,organisational and national competitiveness can have on local, regional nor from microenterprises. They come from dynamic, high-growthand global economic and social development.  SMEs [small and medium enterprises] that Endeavor identifies as ‘High- Panels with topics that address the link between innovation and Impact Entrepreneurs’.competitiveness this year include: an Oxford-style debate about the “On a national scale, these entrepreneurs are the ones that can generatemerits and successes of the Kingdom’s 10 x 10 programme; innovations in wealth, create high-value jobs, serve as role models and set into motion ahealthcare and education as well as forums that address the relationship culture of investment and economic growth. Identifying and supporting022
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  • 18. ceO inDusTry His conclusions are based on the rising importance of advancement in “i’m confidenT communication technology. “Looking back at the last decade, it is difficult ThaT The gcc/ to ignore the internet revolution and its dramatic impact on reducing mena region information costs,” Gadhia says. “This has transformed the nature of is Poised for many sections of the economy, particularly through increases in labour a similar productivity. However this is still largely a Western world phenomenon. TrajecTory. “In the next decade, the growth markets of Asia, Africa and Latin jusT look aT America will also see more of the benefits of a fully connected world. This makTooB, The should further accelerate their progress and open up new possibilities. araBic online The coming decade will also see more emphasis placed on sustainability PorTal BoughT – and not just one-off gains in competitiveness.” By yahoo! lasT Gadhia elaborates: “Wearing my other hat in the financial services year. now sector, the productivity gains of information technology have effectively enTrePreneurs made the world smaller, and also made talent more global and accessible. from amman Offshoring and outsourcing are two manifestations of this. This trend To riyadh are should lead to greater efficiency for the financial services industry and saying: ‘i wanT help improve end-customer service, but it will also lead to the challenge To Be The nexT of managing a more complex and content rich system. Technology is makTooB’, and also breaking down the traditional distinctions between producers and an invesTor consumers, with the latter increasingly participating in the former.” communiTy is already Taking Jim Turley, CEO of Ernst & Young, has recently led cutting edge research rooT.” CourTeSy of eNDeAvor to better understand competition and market growth. “We found that competitive companies tended to be significantly ahead in some linda roTTenBerg, important areas. They were making the most of potential opportunities ceo of endeavor by prioritising markets, broadening their product offering around current clients and reinforcing brand awareness,” he says. “Importantly, they were agile – focused on getting to market quicker, making their supply chains more flexible and staying focused onthese ‘High-Impact Entrepreneurs’ is one of the best ways to foster innovation. And in today’s dynamic, globalised market I think that’sinnovation and contribute to the competitiveness of emerging markets – crucial to growth.and for that matter all countries – on the world stage.” “They were also cost competitive, sustaining cost reduction efforts and Rottenberg is optimistic about their future. “I’m confident that the GCC/ optimising capital wherever possible,” he continues. “And, finally, theyMENA region is poised for a similar trajectory. Just look at Maktoob, the were taking the time to build strong relationships with their stakeholders.Arabic online portal bought by Yahoo! last year. Now entrepreneurs from In my view, being competitive in today’s world is about focusing in onAmman to Riyadh are saying: ‘I want to be the next Maktoob’, and an these four areas – and doing better in each of them than your peers.”investor community is already taking root.” Turley also agrees that innovation is a crucial part of global One of Endeavor’s innovations is its “Search and Selection” process. competitiveness. “In developed markets and mature companies,“We’ve always believed that transformation comes from being selective; innovation is crucial to competing for growth in a tough and constantlyso rather than supporting every entrepreneur, we’ve set up a system for changing global market. It’s really easy for larger, more establishedvetting the highest-growth, most competitive businesses, believing that companies to lose their entrepreneurial spark and become rigid andthey hold the key to making economies as a whole more competitive. hierarchical.In 13 years, Endeavor has screened more than 22,000 candidates andselected 555 High-Impact Entrepreneurs,” Rottenberg says. “in develoPed markeTsJitesh Gadhia, a trustee of the National Endowment for Science, and maTureTechnology and the Arts (NESTA), which promotes innovation in comPanies,Britain, as well as a senior managing director of the Blackstone Group, innovaTionsays: “The technical economic definition of competitiveness probably is crucial Totends to focus more on comparative measures and relative advantages of comPeTing forfirms, industries and nation, [but] the over-riding test of competitiveness growTh in ais the capacity to create wealth on a sustainable basis.” Tough and NESTA’s research shows how innovation plays a key role in global consTanTlycompetitiveness. “NESTA’s Innovation Index found that 67 per cent of changingnational productivity increase in the last decade in Britain arose from gloBalinnovation. A similar pattern is likely to apply to other economies. markeT.”Without the productivity gains innovation brings, countries will not CourTeSy of erNST & youNgbe able to compete effectively. Innovation is the fuel which powers jim Turley,competitiveness,” Gadhia says. ceo of ernsT & young024
  • 19. CourTeSy of DISNey THinK WOrlD evenT Tom Albanese, CEO of Rio Tinto. “So it’s important that even large companies promote an internal culture Andy Bird, COO of Disney, has embraced a nuanced understanding of innovation or ‘intrapreneurship’. The companies that get it right, I of competitiveness to ensure the company’s future success. “For me, think, have the best of both worlds. They have great resources behind the definition of competitiveness can be interpreted in two ways: in them as well as a vast internal talent pool to supply entrepreneurial ideas.” competition and the desire to win; and in economic terms, the ability Ernst & Young also found that market variation has increased. “Today you to sell and supply goods and/or services in a given market. What is can start global, you don’t really need a single home market, and you can important in both definitions is the need for relevance, quality and source capital, products and people from an array of places,” Turley says. innovation,” he explains. “At the same time, competition is fierce, can come from anywhere “In order to stay relevant, a company and its products need to and even established players can be disrupted. Our research found that constantly look to innovation and in today’s world, consumerism moves companies across all sectors and markets are expecting the new economy at an increasingly rapid rate. Unless you are constantly looking forward, to be even more competitive than the old economy over the next two years. you run the risk of being left behind – of becoming less relevant.” “We’re seeing two or three-speed recoveries within developed or For Disney, this leadership philosophy has been crucial to growth. emerging economies and in many sectors old purchasing patterns are “Innovation is at the heart of the Walt Disney Company,” Bird says. “Walt under pressure from demographic or economic shifts. We’ve also found himself was a great innovator, creating the world’s first synchronised that supply chains are being pressured by volatile markets and shorter sound cartoon with Steamboat Willy in 1928; the first Technicolor product cycles as innovation is increased. cartoon in 1932; the first feature length animation with Snow White  in “Companies are feeling pressure on margins as appetite for price 1937; and the first theme park with Disneyland in 1955. increases remains diminished. And stakeholders are demanding more “To This day, “To this day, innovation and creativity are at the heart of what we transparency and improved governance,” he continues. innovaTion and do. You can see examples of this today in everything from the technology “One of the most important innovations for Ernst & Young is the creaTiviTy are used by Pixar in Toy Story 3 to the new attractions in any one of our work that we’ve done over the past decade to become the most globally aT The hearT of theme parks to the various ways consumers can enjoy our films and integrated organisation in our profession – in our mindset, structure and whaT we do.” television programmes.” actions. We’ve got a new mix of cultures and different styles of working, thinking and communicating than, say, even 10 years ago – because andy Bird, Tom Albanese, CEO of British-Australian mining firm Rio Tinto, we’re more global and because a high proportion of our workforce are coo of disney suggests: “Competitiveness is the dynamic interaction of competitive generation Y. rivalry between existing suppliers, the threat of new market entrants, “Anticipating these shifts, we’ve worked hard over the years to embed bargaining leverage of buyers, power of suppliers and the threat of an inclusive culture that’s focused around high levels of personal substitute products.” He also maintains that global competitiveness is engagement and development – a culture that means everyone has the accelerated by innovation and technology because it “enables suppliers to same opportunities, whatever their background, to build a great career lower production costs and potentially unlock new resources, which will from day one. That’s something I’m really proud of.” enhance competitiveness”. 025
  • 20. ceO inDusTry techniques. “Innovation plays an important role in creating culturally “innovaTion Plays and contextually appropriate strategies for scaling up and scaling out an imPorTanT in any particular country, which ensures sustainable growth and global role in creaTing competitiveness,” Zhou says. “Building a philanthropic platform, the One culTurally and Foundation brings together resources from the non-profit, government, conTexTually business and academia to answer the social challenges.” aPProPriaTe This approach allows for a lasting and permanent positive impact sTraTegies for in communities that need it the most. “Last year, the One Foundation scaling uP and partnered with the China Merchants Bank to issue a debit and a credit scaling ouT in card that have all the financial functions, but are the first ones in China any ParTicular to use donation amounts as the credit upgrade standard,” Zhou states. counTry, “Cardholders can choose to donate a certain amount of money to the One which ensures Foundation every month, and when they use the card, some contracted susTainaBle merchants will donate a certain amount of money to the One Foundation growTh with each purchase.” and gloBal  In June last year, the One Foundation set up the Philanthropy Institute comPeTiTiveness.” with the Beijing Normal University, the first of its kind to offer higher education in philanthropy. While it was established by a non-profit amy zhou, foundation and a university, its board consists of outstanding Chinese TrusTee and execuTive entrepreneurs, such as the chairman of Alibaba, Jack Ma, and its director chairman of one is a former head of the Ministry of Civil Affairs. The Institute marks the foundaTion start of the official philanthropy education in China. Michael Strong, co-founder of the US-based FLOW, an emerging movement dedicated to liberating the entrepreneurial spirit for good, CourTeSy of oNe fouNDATIoN emphasises that innovation does not only mean advancements in technology. “Precisely because the most effective approach to competitiveness is to identify and serve an under-served niche, it’s a mistake to focus exclusively on technological innovation while ignoring other forms of innovation,” he says. “After technological innovation, there is widespread awareness of the importance of innovation in business strategy and According to Albanese, this enhanced competitiveness has shifted in marketing strategy, and there remain countless opportunities there withthe last decade. He says that in the past 10 years “competitiveness tended respect to the identification and exploitation of niches.”  to focus more on OECD markets. In the next decade, there will be much Strong explains that what lies ahead for innovation requires thegreater focus on developing markets including China, India, Russia, development and utilistion of creativity and thought. “The next frontierBrazil and South East Asia”. for innovation is the world of cultures, ideas and branding. The 21st-  At Rio Tinto, innovation is most clearly illustrated by their “Mine of century economy will be the experience economy, in which developedthe Future” programme. “It utilises next generation technologies to allow world consumers will increasingly be seeking rich, valuable experiences,for smarter mining, resulting in greater efficiency and lower production and an increasing percentage of the world’s population will count ascosts as well as improved employee health, safety and environmental developed,” he says.performance,” Albanese says. “Thus we are seeing the growth of ‘meaning as the new luxury’, the growth of the ‘cultural creative’ demographic and conscious capitalism.gloBal ProsPeriTy: Thinking Beyond The Thus firms seeking to focus on innovation should include but transcendBusiness of innovaTion and comPeTiTiveness innovation in technology, strategy and marketing to focus increasinglyThe inexorable link between innovation and competitiveness can also be on deep innovations in creating conscious capitalist companies thatunderstood by looking at ideas from those who lead and develop not-for- incorporate meaning and purpose into their corporate DNA and therebyprofit organisations and NGOs. obtain a sustainable competitive edge as an increasing percentage of the Amy Zhou, trustee and executive chairman of the China-based world’s consumers demand meaning and purpose in the products andOne Foundation, understands how competitiveness works in dynamic services that they purchase.”ways. “Recently organisations’ competitive edge has shifted focus from To accelerate its goals, FLOW “has focused on integrating the worlds oftechnology and the upper and middle parts of the pyramid to the creation humanitarianism and business in new ways that have allowed us to defineof better human capital through training and education, which tends to and lead the growing conscious capitalism movement and the Peaceopen up a blue ocean marketplace at the bottom of the pyramid level,” through Commerce movement while also nurturing numerous specificshe says. “As this happens, minorities’ interests will become increasingly innovations, such as the entrepreneurial creation of legal systems forimportant and a new type of venture capitalism with new forms of the sake of poverty alleviation [to promote both peace and prosperity].philanthropy will be created.”   In each case, we have sought to identify niches at the intersection of The One Foundation is able to achieve its international philanthropic humanitarianism and business, which are not currently being served bygoals using state-of-the art technology and community-building existing organisations.”026
  • 21. THinK WOrlD evenT new methods in business practice. It can no longer be business as usual. Innovation would be the air to breathe at this moment of economic meltdown. You either innovate at this moment or you die.” He is clear about the necessity of thinking about the environment as a part of all innovative strategies. “This principle is applicable whether you are an individual, private or public sector, non-profit or even a nation,” Dr Adelegan says. “In human history, economic meltdown has always triggered unprecedented innovation. These economic crises would usher in massive innovation that mankind has never seen or heard. This is not an occasion to mourn for the world. It is a moment of triumph. “Competitiveness could be measured by growth, market share and profitability. However, competitiveness does not always imply more profit, especially in the contemporary world of imperfect competition and strategic behaviour of industrial firms. A firm’s strategy to acquire market share in order to attain optimal economies of scale may initially result in less profit [or even loss]. Such a strategy may include eco-innovations that may boost consumer acceptance of products,” he explains. “Market share may be gained at less profit to the firm. Competitive firms are generally known to be innovative firms. The capacity of a firm to adopt environment-friendly behaviour may depend on the competitive nature of the firm, every competitive one being more prone to recognise opportunities for eco-innovation than a less competitive one.” Business’ growing concerns with being environmentally friendly, through both investment strategies and company protocol, is also on the rise. “Environmental innovations may lead to more complex, environmentally benign technologies, processes and products. These in turn might lower overall company costs, boost long-term competitive advantage and ultimately enhance corporate financial performance,” Dr Adelegan says. “Companies that face stronger environmental regulation are more likely to innovate more, than companies operating in weaker regulatory environments.” He maintains that the link between environmental responsibility and competitiveness is strong. “Firms do invest in research and development and choose technologies that offer competitive prices after internalising the externalities like pollution control costs in an attempt to stay ahead of CourTeSy of fLoW competitors,” Dr Adelegan confirms. “Hence, environmentally benign technologies and competitiveness michael Strong, CEO of FLOW. could be a plausible outcome of dynamic rivalry in industrial organisations. Environmental innovation not only leads to social benefits Strong’s vision of how niche markets are substantial elements of and improved corporate performance in the long run, but may very oftenfuture market growth has played a significant role in FLOW’s success. Joseph. Adelegan, CEO, also result in increased competitiveness for the companies.”“Globalisation is putting ever greater competitive pressure on commodity Green Globe Trust One of the programmes that Dr Adelegan champions, a renewablesuppliers, as commodity suppliers face increasingly direct competition energy innovation dubbed “Cows to Kilowatts”, is spreading like wildfrom an ever-growing number of competitors,” he says. fire across Africa. “Indigenous innovation of this kind will underpin “At the same time, globalisation is providing ever greater opportunities the adoption, diffusion, improvement, adaptation and identificationfor the creation and exploitation of distinctive niches in products and of opportunities for the development of new technologies that wouldservices. Unless one has an unusual competitive advantage in commodity catalyse the world transition to low-carbon economy, which would bemarkets, it is increasingly important to identify, develop and exploit the engine of growth for sustainable industrial development,” he says.niches as a strategy for sustaining competitiveness.” Dr Adelegan’s conclusions are firm. “Environmentally sustainable and green economy would be the hallmark of this business age. You eitherDr Joseph Adelegan, president of Green Globe Trust, founder of line up or you perish. There would be no other option,” he says. CourTeSy of greeN gLobe TruSTthe Global Network for Environment and Economic Development “Every pressing social, economic and environmental challenge is anResearch, and founder of the Cows to Kilowatts Partnership, agrees that opportunity for business to create benefits while also being profitablecompetitiveness is not always about profit. “We are living in the most for world betterment. Sustainable value creation would be the businessexciting time in human history. Innovation is a necessity and not a luxury opportunity for the 21st century. The deployment of eco-innovationfor global competitiveness,” he says. would contribute to efficiently addressing current global environmental “Innovation is the creation of new or improved products, processes or challenges for sustainable economic development.” 027
  • 22. inTervieWhumane naTure ThINK SPeAkS exCLuSIveLy To beST-SeLLINg AuTHor, eNTrePreNeur AND DeDICATeD ACTIvIST PAuL HAWkeN, WHo IS CoMMITTeD To MAkINg THe WorLD A beTTer, More eTHICAL PLACe. wriTTen By joanne molina028
  • 23. The impact of Paul Hawkenon our world is incontestable: author, The legacies of faith and activism in the African American communityinternational business guru, and social were especially influential elements. “Iand environmental crusader, he is one was very much influenced by Africanof a handful of public intellectuals who American civil rights activists who werehave fearlessly been the gadflies who fearless in the face of hatred, calumnyinterrogate and innovate the worlds of and violence. I was more impressed byinternational finance and technology. the rank and file than I was by the leaders.Recognised by heads of state, The discipline, the principled resistance,institutions of higher learning and the and the ability to be non-violent despiteleaders of the environmental industry, threats and cruelty was remarkable,he is a model citizen and entrepreneur. unforgettable,” Hawken states. Hawken’s seven books includes Despite myriad forms of internationalfour US national bestsellers: The recognition, Hawken maintains a rareNext Economy, Growing a Business, and sincere form of humility. “I amThe Ecology of Commerce and Blessed not sure I have any brilliant principles.Unrest. In 1998, The Ecology of Maybe knack is a better word,” heCommerce was voted as the number suggests. Still, he maintains that thereone college text on business and the are three elements that have beenenvironment by professors in 67 crucial to the success of each of hisbusiness schools. Natural Capitalism: ventures. “One is finding extraordinaryCreating the Next Industrial Revolution, co-authored with Amory people, and by that I mean people of great heart and deep intelligence. TheLovins, has been read and referred to by several heads of state, including second is creating the conditions in which people excel and the third isPresident Bill Clinton who called it one of the five most important books setting compelling goals that surpass money, gain, or self-interest.”in the world. Hawken’s groundbreaking volume, Blessed Unrest, is a testament to Hawken is currently launching OneSun, an energy company focused how these “knacks” can be realised. “Activism is the art of overcomingon ultra low-cost solar based on green chemistry and biomimicry; cultural and social inertia, the long held prejudices and unproductiveand Highwater Global, a social impact fund that employs the highest mores that get embedded or politicised in societies by belief systems andstandards of corporate social, ethical and environmental behaviour. He ignorance,” he says.shared his leadership and business philosophies, and revealed his strategy “Successful activism within civil society requires timing, strategy,for OneSun with THINK. tactics, diplomacy, inclusion, patience, grace and an unrelenting Hawken has have been driven by the need to serve others in virtually commitment to the interconnectedness of all beings. Effective activism isevery area of his life. “I grew up in a university town where care for the opposite of divisiveness or polemics. Witness Dr Martin Luther King,others and the environment was the social norm. With respect to the Nelson Mandela, Mahatma Gandhi. The conditions and lack of awarenessenvironment, we were members of the Sierra Club, at a time when it was that deny rights or respect to other people, that divide the world intonot politically active, a time when its members were outdoors climbing, classes, is the same ignorance that has caused almost all other problems,hiking, camping and the like. We were taught to leave the environment as whether they be social, economic, or environmental. From my point ofpristine as you found it and, if it was not pristine, to clean up after those view, the world is going through a process of healing and what we arewho preceded you,” he explains. seeing is the sickness latent in our society becoming more manifest.” While others might have been sympathetic and supportive of the According to Hawken, the best strategies are rooted in a progressiveideas and activities that defined the civil rights movement, Hawken idea of “healing”. “We see corruption, poverty and vestigial ignorancechose to became a visible and active participant. “On the social side, nested in cultural or religious intolerance. The world is being unmaskedthe campus where my father worked became the centre of numerous and revealed for what lies beneath and within, a kind of diagnosis, andpolitical movements around civil rights, social justice and peace. I that is the first step to true healing. I think this is a very exciting andthought everyone cared about these issues when I was young because positive era in human history. I realise that it doesn’t look that way,that permeated the social fabric of my community,” he says. however,” he says. 029
  • 24. inTervieW “In Janine Benyus’ memorable phrase, life creates the conditions that are conducive to life. Parallel to the Age of Enlightenment, we came to believe that if we dominate life – soil, forests, ocean, and animals – we benefit, but that is clearly not the case. We are life itself, and the same laws and principles that apply to living organisms apply to us, and equally, the principles that guide living systems apply to our economy, manufacturing, and society,” he explains. “Biomimicry is a gift waiting for those who awaken, a non-violent means to organise society and make things that are non-toxic, energy efficient, dematerialised and ingenious. The main challenge of biomimicry is to forego thinking manipulatively. The thermo-industrial system is what our engineers, scientists and designers are taught.” The history of this paradigm has only started to be written. “Janine coined the term biomimicry in the mid-1990s and the book of the same name was published in 1997,” Hawken says. “It is said that paradigms don’t change but are taken to the cemetery, so the book has already His nuanced philosophy extends to his ideas about business and witnessed the coming of a new generation and the passage of an olderresponsibility. “Corporations have no obligations at all except to grow. one. For better or worse, that is how ideas diffuse. If there are dangers inThat is the problem with business, frankly. A big multinational company thinking one way or the other, they lie entirely in thinking that violenceis like a super-organism with a big brain and no conscience,” Hawken is a template for progress.”says. “It is people, not organisations, that have social awareness. As Hawken’s notion of “healing” is shown in his understanding of howpeople, I believe we have an obligation to create businesses where social biomimicry is a way of considering and solving problems that is rootedand environmental issues are integral to the mission, not added on. We in making peace in a sea of violence in both the natural and social worlds.have an obligation to not invest in companies that do otherwise. We have “The take-make-waste industrial world that depends on fire, force andan obligation to create products that do not harm people or places now or domination is a world of explosions, high temperatures, pressure, heavyinto the future. But we can only transform companies to become humane metal catalysts, and tens of thousands of covalently connected moleculesand responsible if we transform ourselves.” never before seen in nature. The way we treat our forests is violent, the His understanding of business ethics begins with the ethical way we treat our children is violent, the way we treat women is violent, asconsciousness and obligations of an individual always already situated is the way we treat soils, oceans and animals,” he says.within a global community that shares a Rousseau-style social contract. “Our chemistry is violent in that tremendous force is used to createHe further explains: “To isolate a gender or a minority is to place some novel compounds that inevitably have unintended toxic consequences inpeople in a position of power over others. If you are ‘over’ or ‘above’ or living systems. At the heart of biomimicry, although it is certainly not a‘better’ than someone or something, you are disconnected and basically social movement, is making peace with each other and the world aroundnot completely sane.” us. Nature in its exquisite intricacy and efficiency follows the path of least resistance to achieve outcomes we can barely understand, much lesshawken’s cuTTing-edge activism and business strategies are emulate. We are still treading the flat part of the learning curve, and theevidenced in work with Dr Janine Benyus, a founder of the Biomimicry potential innovation that lies ahead is vast and generous.”Institute. “I believe biomimicry is just beginning its impact, and along OneSun, Hawken’s latest venture is rumoured to be poised to changewith that I would place green chemistry. I think both will come to the energy industry as we know it. “OneSun is in stealth mode, so there isdominate how we teach science and foster innovation. not much we can say about it,” he says.030
  • 25. But he reveals to THINK the radical thinking and science shaping things, and the corollary is that they are charged with manufacturing x“essenTially x the company’s future. “Janine Benyus and I started the company with desire. The extraordinary market value of companies like Google, we PuT x x John Warner, the man who coined the term green chemistry and co- authored the book of the same name. We utilise the principles of non- Facebook, Twitter, Yahoo, Baidu, etc are due to one thing: they advertise and prompt people to buy. Thus, I wouldn’t look to corporations for molecules x x covalent chemistry and biomimicry and apply them to converting solutions to consumption because it would be irrational for a large light to electricity. We do not try to imitate multinational corporation to reduce shareholderx TogeTher ThaT x photosynthesis, as that is an immense challenge. value and un-sell its products. wanT To Be x x However, we utilise observations from the plant and animal world to design the PV panel. “I suspect changes in consumption will arise from income and resource constraints, and the TogeTher,x x “Essentially we put molecules together that realisation that overworking to over-shop is want to be together, which means it requires a miserable way to live. In short, people shop xwhich means x no heat, pressure, vacuums, moon suits, noble because they think it makes them happy. Onex iT requires no x gases, sintering and ovens. Part of the reason we by one people are discovering that not shopping don’t discuss it is due to the sometimes bold and can make them happier. That is not an option forx heaT, Pressure, x unsupported claims that are made in solar PV.” most of the world, which desperately needs better vacuums,x x This is important to note, Hawken says, because “there has been a good deal of hype and housing, transport, schools and healthcare.” Even so, Hawken is optimistic about the future. moon suiTs, x x exaggeration in the solar world, claims that were “I am quite impressed with what many companies never fulfilled and promises that underwent a are doing with respect to the environment. At xnoBle gases, x slow death after the publicity died down. We will the same time, many companies belong to tradex sinTering and x either fail or succeed. If we succeed, we will have something to say.” organisations that resist higher environmental and social standards,” he says.x ovens. ParT of x He has a profound understanding of the He points to two organisations in particualr relationship between consumer and producer that he believes are part of the solution. “One ofx The reason we x that shapes his environmental philosophy. “People shop to placate the truly great organisations comprised of professionals, corporationsx don’T discuss x themselves, to pretend they are someone else, to gain approval, to belong, and businesspeople is the US Green Building Council [USGBC], and its to be admired, to conform, to be beautiful. We conflate owning things affiliated Green Building Councils all over the world. In 17 years, it has iT is due To x x with meaning and identity,” he claims. become the third largest environmental NGO in the world,” Hawken says.x The someTimes x “These are ancient human drives and delusions. There is nothing new there. What is new is our ability to make things so inexpensively that “What is so remarkable about the USGBC is that its purpose is to raise the bar, to improve energy efficiency, to reduce toxicity, change building Bold andx x consumption has gone through the roof.” codes, and improve society and human health. It is the opposite of the Currently, almost every international corporation has some kind US Chamber of Commerce and other trade organisations that want to xunsuPPorTed x of environmental platform – recycling, reusing, environmentally maintain the lowest denominators, all in the name of the free market, claims ThaT x x responsible investing – but these programmes don’t necessarily address the psychological elements that contribute towards the Western world’s which of course only exists rhetorically. “A healthy society has a complementary relationship between are made in x x desire for the production and consumption of “new” goods. commerce and governance, one that recognises that certain functions Hawken suggests the solution to the problem lies within the realm and impacts of commerce require policies and limits for the good of the solar Pv.” x x of personal responsibility. “Corporations are designed to make and sell whole,” he concludes.The ProsPecTs for renewaBle energy in certainly exceeded 100:1. Conventional silicon panels have an eroeI of 5:1, and powerful spur to research and development that can leapfrog existing technologies. WeThe kingdom of saudi araBia this does not include the energy required still cannot make a panel that is anywhereTHe PoTeNTIAL PITfALLS AND ADvANTAgeS IN THe regIoN to mount arrays, maintain the panels, or close to being as effective as a tree because eventually dismantle and dispose. In other our solar technologies are Promethean, Certainly, the more energy you have, the cleaning, that does not degrade in high heat, words, solar is energy intensive, and the man-over-nature electronics that depend on easier it is to make a transition to new forms and that is affordable for all people. In other energy required to make a silicon panel is high heat, electronic gases (silane, sulfur of energy. The obvious technology to tap is words, instead of thinking of how to solve the almost entirely supplied by coal, especially hexafluoride), rare earths, and heavy and solar because of high insolation values on low-carbon energy challenge on the peninsula, in China. you can’t make a solar panel as precious metals. This is where Saudi Arabia the Arabian Peninsula. At the same time, why not solve it for people all over the world it is currently designed from solar energy could lead the world, in transforming solar from a technical point of view, there is no who cannot afford expensive power? in an economical way. for a civilization to research away form expensive materials to extant solar technology that is economical at one of the reasons oil was so effective prosper, it must do much better than 5:1. inexpensive, away from energy intensive this time. Additionally, the presence of dust as an agent of industrial progress was Hunting gathering societies had 10:1 ratios. production methods towards biomimicry and and heat significantly reduce performance that for every unit of energy invested in I have no doubt that Saudi Arabia is looking green chemistry. on conventional silicon and thin film panels. extracting oil, there were huge energy at the entire thermodynamic cycle, as well as Paul hawken rather than buy solar farms from outside the returns, what is called eroeI: energy return the environment, in order to determine what Paul Hawken’s keynote presentation on country, or even research from other countries, on energy invested. I do not know the ratios is going to be a viable long-term energy Natural Capitalism is during day two of the it would make more sense to invest in true in Saudi Arabia today, but when oil was technology. I believe that the income stream global Competitiveness forum. innovation, a solar technology that is self- first discovered at Dhahran in 1938, it from existing oil production could be a 031
  • 26. TranspOrT 01MoToCZySZcharging aheadrAPIDLy ACCeLerATINg groWTH IN THe MArkeT for eLeCTrIC veHICLeS IS SeT ToCHANge THe DyNAMICS of THe eNTIre AuToMoTIve SeCTor.wriTTen By glenn freemangloBal interest in electric vehicles is building, withincreasing numbers of automotive companies manufacturing electric or is a prominent advocate of the expanding uptake of electric vehicles. With some of the nation’s most influential organisations among its members, 01 The motoczysz E1pc championship-winning electrichybrid electric/gasoline powered vehicles. including Nissan, GE, Cisco, and Siemens, EC proposes a number of motorcycle. In the United States alone, JD Power and Associates, an international federal policy initiatives aimed at reducing liquid fuel information firm, predicts electric car sales will hit 90,000 Among some of the projections it cited in a recent report, Economicvehicles a year by 2015, compared with 145,000 plug-in hybrids. In Impact of the Electrification Roadmap, was a cumulative reduction in oilEurope, between one and six million electric vehicles are anticipated by imports. It found these could fall by around 3.2 million barrels per day2020, which will account for between nine and 13 per cent of all European (mbd), decreasing from 11.9 mbd in 2010 to 8.9 mbd, by 2030.vehicles. The report also found a flow-on effect of this would be a significant With the prospect of diminishing demand for fuel from some of the reduction in the price of oil, brought about by diminishing demand. Itbiggest consumers, the pressure is on nations with a high reliance on oil stated that “outside commodity price experts have estimated that therevenues, including those in the Middle East, to remain in touch with the price of oil would be almost seven per cent lower by 2030 than it wouldfundamental shift sweeping the automotive sector. be without the EC policy package”. A US-based non-profit organisation, the Electrification Coalition (EC), While identifying the opportunities presented by vehicle electrification,032
  • 27. TranspOrT CourTeSy of NISSAN 02 01 Siemen’s concept of a Quick Charging Station. 02 Interior of the new Nissan Leaf. 03 The sporty exterior of the Leaf. 04 Jean Pascal Tricoire, CEO, Schneider Electric. 03 01 SIeMeNS PreSS PICTure the report also acknowledges the many challenges. These include consumer It became the first car manufacturer to launch an affordable electric car preferences for petrol-powered vehicles, costs of buying vehicles and with plans to sell substantial numbers, delivering its first Leaf all-electric batteries, the need for specialised electric refueling infrastructure and vehicle in December 2010. This should be rolled out globally throughout concerns over the capacity constraints of existing power grids in coping 2011 and 2012. with massive-scale vehicle recharging. French manufacturer Citroën is among other automotive Showing the growing appetite of American consumers for electric manufacturers to soon begin marketing all-electric vehicles, with its vehicles, some of EC’s initiatives are already receiving bi-partisan support C-Zero model developed in collaboration with Mitsubishi. Fellow from the US Government. In early 2010, both the Republicans and European manufacturers Peugeot, Renault and BMW also announced Democrats introduced legislation designed to advance deployment of new electric and hybrid vehicles at the most recent Paris Motor Show. electric vehicles and to develop the required infrastructure. Somewhat surprisingly, electric vehicles are also winning advocates The Electric Vehicle Deployment Act of 2010 was passed into within the motor racing fraternity, which is still overwhelmingly legislation in May. Related legislation including the Electric Drive Vehicle dominated by traditional internal combustion engine, fuel-powered Deployment Act of 2010 and the Clean Energy Jobs and Oil Company vehicles. Accountability Act was introduced in the following months. One of these relatively recent converts is Michael Czysz, founder and “There is bipartisan support not only for electrification, but for the chief executive of Motoczysz, a small company from Portland, Oregon. creation of deployment communities, which represent the best way to Originally conceived as a boutique manufacturer with dreams of building move the vehicles at scale,” says Robbie Diamond, president and chief a contender for the world championship motorcycle competition, CourTeSy of SCHNeIDer eLeCTrIC executive of EC. MotoGP, Motoczysz now manufactures the E1pc electronic motorcycle. A number of EC’s recommendations have also received early support The Motoczysz E1pc won the 2010 Zero Emission race at the world- from within the multi-billion dollar automotive sector and related famous Isle of Man TT road race. Earlier the same year, it also won the industries. One of its member organisations, Nissan, is among the ever- International Motorcycling Federation’s e-Power Championship at the growing list of established companies who have already introduced or famous Mazda Raceway Laguna Seca, California.04 flagged their intention to market electric or hybrid vehicles. In achieving this rapid and resounding success, the company has 033
  • 28. TranspOrT 01CourTeSy of bMWundergone what Czysz says was a 180-degree shift in the past two-and- This revelation prompted him to return to the drawing board in instead 01 BmW has announced productiona-half years. As a motorcycle racer, Czysz describes himself as someone envisioning what was going to be “the next big thing” for the automotive of a sports car with plug-in hybridwho loves the smell of racing fuel: “I could have cared less about this sector. “I wanted to try and lead in the future, instead of catching up in technology[electric vehicles] a decade ago, but I have woken up more recently – we the past. It seemed that electric [propulsion] was the area that needed thehave to have some responsibility [for the environment]. I started thinking most help,” Csysz says.that maybe there is a balance we can strike.” In addition to creating the E1pc racing motorcycle, Motoczysz became focused on creating the first fully integrated electric drive system foraccording To Czysz, the pivotal change of direction for his electric vehicles. “I had first looked at sourcing the best products availablecompany came after he spent years developing the C1-990 motorcycle, in putting our own electric vehicle together, but it soon became painfullypropelled by a 990cc petrol-powered engine. “I travelled the world and evident that most components aren’t up to motorsport standards or evenmet with several of the largest motorcycle manufacturers in Europe, all that sophisticated… a lot are incredibly rudimentary, many are aJapan, China and other countries. I eventually got the sense that a high complete mess,” Czysz says.performance motorcycle wasn’t the priority for any of those companies,” As a result, he found there was a more immediate business opportunityhe says. in creating the optimal mix of electric vehicle propulsion components. “They weren’t revealing exactly what they were doing, but said they Motoczysz then looked at creating a power module that is morewere looking for alternative vehicles rather than high-performance… I integrated, much like an internal combustion engine, rather than justhad a sense that I had been behind [the times], but nowhere near as far individual components that are assembled in a piecemeal fashion.back as I actually was.” “I thought: ‘Let’s take our technology and our ideas, put them in034
  • 29. TranspOrT 02 01 An Elektrobay recharging point. 02 King Abdullah University of Science and Technology (KAUST). 03 Another real-world application of the Elektrobay. 01 03CoPyrIgHT eLekTroMoTIve a different format and then market ourselves within the four-wheel is French company Schneider Electric. Now a specialist in energykausT leeds automotive vehicle market’,” says Czysz, though he was also intent on management, Schneider started as a steel company in the 1800s, andThe way remaining involved with electric motorcycle development and racing. since then has moved onto electrical distribution and automation beforeA planned network of electric vehicles for The fruit of his new, refocused labour was the D1g1tal Dr1ve D1 for focusing on energy management more recently.king Abdullah university of Science and electric cars, which also forms the basis of the E1pc’s electric engine. “The In conjunction with Toyota, it has recently developed vehicle batteryTechnology (kAuST) was a key aspect response has been amazing, electric-powered really is the engine of the chargers for 135 plug-in hybrid vehicles in a small-scale trial in Strasbourg,in its designation as Saudi Arabia’s first future,” he adds, having had intense interest from companies around the France. Alongside a Renault-Nissan alliance, Schneider was also involvedLeadership in energy and environmental world. in a trial of 100 vehicles in Yvelines, part of an overall longer-term projectDesign (LeeD) certified project. valued in excess of US$8.5 million. In a deal signed with uk-based company Though corPoraTe confidentiality agreements prevent him One of the concerns raised around electric vehicles is the ability forelektromotive, the university plans to install from revealing specific company names, Czysz says these range from existing power grids to cope with the increased demands from their150 elektrobay charging stations. These some very well-known, large automotive companies to those focusing on high-voltage charging requirements. According to Schneider, the powerwill be used for recharging the 150 electric more limited-production vehicles. drawn from a single socket during an electric vehicle charge is equivalentvehicles that will transport staff and pupils “I’ve also had interest from some emerging countries that are looking to that of an entire house or apartment at maximum load.around the campus.  to compete on a global level [within the electric vehicle space], along “Widespread use [of electric vehicles] will put added stress on a Along with an electric Segway sharing with numerous startup companies that want to build an electric vehicle grid that wasn’t designed to handle them. To minimise the impact andprogramme for shorter trips, these alternative without developing all the technology from scratch,” he says, adding integrate electric vehicles as a permanent feature, new capabilities aretransportation methods will have dedicated potential clients from India are among the most interested from within required to turn the grid into a ‘smart’ grid,” says Jean-Pascal Tricoire,parking locations throughout the campus emerging markets. chief executive officer of Schneider, adding that he believes Schneiderand surrounding community. “We’re being approached by countries from all over world… I’m Electric has the necessary expertise to support this shift. There are also plans for an electric bus somewhat ashamed to say, but the least interest so far is from the US, but In addition to ensuring safe charging, Schneider claims its technologysystem to transport students and staff around the most interest is coming from countries like Taiwan and also Europe, can optimise the charging load according to both the vehicle’sthe campus and the nearby Harbor District who seem to be very interested and the most aggressive [in this sector].” requirements and the power available in the grid.commercial center. While the vehicles themselves are the most obvious consideration Other more advanced features are also planned. This includes other, more low-tech carbon neutral in the seemingly relentless transition from conventional cars to those technology enabling vehicles to specifically draw on the renewabletransportation methods will be supported by propelled by electricity, a crucial aspect is their charging infrastructure. energy sources within a power grid, and also vehicle-to-grid systems. ThiskAuST, too. These include bicycle sharing Technology analyst Gartner Group predicts this new market – including last feature would allow electric vehicles to return some of theirprogrammes, bicycle racks and changing wall-mounted charge points for homes and commercial charging stations power to the grid during peak consumption periods or when otherfacilities, which will also be provided, – will be valued at nearly US$400 million by 2015. power is unavailable, such as during storms or other unexpectedparticularly during the cooler months. An organisation that is among those leading the way in this space events. 035
  • 30. eDucaTiOnBuddinggeniusCHILD ProDIgIeS Are feTeD THe WorLDover for THeIr PreCoCIouS brILLIANCe,buT THeIr INNATe exCeLLeNCe NeeDS To beCArefuLLy NurTureD If THey Are To reACHTHeIr PoTeNTIAL.wriTTen By sTeve hillkaavya Jayaram made her presence felt at the recentInternational Congress of Women Mathematicians in Bangalore with athought-provoking paper on integer partitioning – expressing numbers asthe sum of other numbers. Her paper is set to be published by the International Journal of NumberTheory as Kaavya continues to study pure math, psychology and philosophyalong with practising her preferred musical instrument of the violin andstudying languages. Nothing particularly unusual in that, one would assume, but for the factthat she is just 12 years old and already making waves in the serious world ofacademia when most of her contemporaries are schoolgirls apt to gigglingfits as they relive episodes of the latest must-watch reality TV show. Kaavya’s family are now considering full-time university courses atStanford or Berkeley in the United States, but what the long-term futureholds for this talented youngster will not become clear for a while yet. The same can also be said of 15-year-old Arran Fernandez, a maths geniuswho recently became the youngest Cambridge University undergraduatesince William Pitt the Younger (later to be appointed Britain’s youngestPrime Minister at the age of 24) was offered a place as a 14-year-old in 1773. This home-educated only child is living with his father close to campus,and is reportedly keen to spend his spare time joining a bird watchingsociety and reading English literature while his fellow students typically takeadvantage of newly found freedoms to enjoy late-night carousing. Child prodigies, of course, are nothing new, with history throwing up endlessexamples of precocious brilliance. However, prodigious achievements at ayoung age do not always translate into glittering adult careers, as the pressuresof being a child in a grown-up world allied to petty jealousies, discriminationand customary growing pains all take a toll. Mozart is quite possibly the most famous example of a young genius, geTTy/gALLo IMAgeScomposing his first pieces of music at the age of just five before setting off ona grand tour of Europe aged seven, entertaining royalty and soon writing hisfirst symphony. This was a talent that burned brightly but for only a relativelyshort of period, as the Austrian-born prodigy died aged 35 in 1791. Vanessa mae036
  • 31. 037
  • 32. ceO inDusTrygeTTy/gALLo IMAgeS geTTy/gALLo IMAgeS mike Perham Ronan Farrow 038
  • 33. inTervieWfamous child Yehudi Menuhin, born in New York to Russian parents before later well as adults who specialise in the area of the child’s interest,” he says.Prodigies becoming a British citizen, was similarly precocious, making his debut “This would provide them with the relief of an outlet for their thoughts. with the San Francisco Symphony Orchestra at the age of just seven. The Care must be taken in the choice of adult friends, for many reasonsBOBBy FISChER violinist and conductor went on to enjoy a glittering career, performing beyond the obvious. An adult can easily be ‘inspired’ by a prodigy, forone of the most gifted chess players and recording with some of the century’s greatest names before dying in instance.of all time, he became an international 1999 at the age of 82. “Are adults the ideal intellectual companions of the prodigy? No. Forgrandmaster at the age of 15 and World One wonders whether Daimee Chu Tao Ng could be about to follow in though they may have more experience than the prodigy it is likely thatChampion when he beat Soviet rival boris his hallowed footsteps, as the five-year-old Irish violin protégée is already the prodigy has greater thinking power than even a bright adult. Yet,Spassky at the height of the Cold War. attracting newspaper headlines in Dublin thanks to her startling musical gifts. highly intelligent adults, experienced in the prodigy’s speciality, are the best peer group available. They will have to do.”mIKE PERhAm BuT how do parents tread the wafer-thin line between nurturing The extraordinary talents of Akrit Jaswal, meanwhile, were apparentAt the age of 14 he became the youngest an extraordinary talent while still ensuring that a child remains a from a young age. This native of Himachal Pradesh in northern Indiaperson to sail across the Atlantic and, at child without feeling undue pressure, was walking and talking by the age of17, was the youngest to circumnavigate expectation or loneliness as they take “if your gifT is aT 10 months, reading Shakespeare at fourthe world solo. Now 18, he is looking forsponsors to help him become the first person steps in an adult world? And how does one guide such a gifted child to ensure one in 10,000, iT is and, as a seven-year-old, performed surgery on a young girl who had sufferedto sail and fly solo around the world. they become a well-adjusted adult? almosT cerTain ThaT badly burned fingers. “We need to cater for their intellectual This is a lonely Akrit enrolled on an undergraduateVANESSA mAEfirst picked up a violin at the age of five and needs. Intellectually able children may well enter school already two or three siTuaTion. for Those course in medicine at the age of 12 and is convinced he will one day find a cureas an eight-year-old was labelled “Teeny years ahead of their peers,” says Lyn whose gifT is rarer for cancer. Time will tell.Paganini” as the youngest pupil at the Allcock, the gifted child consultant for sTill, iT is likely ThaT Judgement will be passed somewhatCentral Conservatory of Music in beijing.A world wide musical phenomenon, she is the British Mensa society and director of inclusion at The Westwood School. They will never meeT sooner on the musical success of Willow Smith, the nine-year-old daughternow 31 and wants to represent Thailand – “Research suggests that the gap does a Peer in Their enTire of Hollywood actor Will Smith whothe home of her father – as a downhill skier not in fact stay constant but tends lifeTime. ThaT is recently signed a record deal within the 2014 Winter olympics in Sochi,russia. to widen as the child gets older and becomes more able to take control of Truly Tragic.” influential rapper Jay-Z. Her vocal skills have already been compared with those their learning. It is for this reason I am not entirely comfortable with the of the legendary Michael Jackson who himself converted childhoodCOLIN CARLSON idea of accelerating a chid as a solution to meeting their academic needs. hits with his brothers into global solo triumphs as an adult before hisThirteen-year-old Colin Carlson is studying “A child of four may watch the news or documentaries, understand the untimely death.for a degree in ecology and evolutionary information given and even the concepts of deforestation, world poverty Ronan Farrow has famous parents in the form of Woody Allen andbiology at the university of Connecticut... or war, but the emotional mechanisms to cope with that knowledge are Mia Farrow. Yet he made waves on his own after enrolling in college atwhich he is suing for age discrimination not yet in place. the age of 11 and being accepted into Yale Law School aged only 16.after not being allowed to join a field trip “The resulting internal conflict can cause all sorts of problems. Much of Farrow did not take his place there straight away, opting instead to workto South Africa, apparently because of his the work I do with bright children is enabling them to come to terms with for former US Ambassador Richard Holbrooke before graduating fromage. Carlson is concerned that being forced their own level of ability and the conflicts and difficulties this may cause.” Yale last year. Now aged 22, he works for the Obama sit out the overseas excursion planned for Valentine Cawley is the father of three gifted children in Singapore, A year younger is Alia Sabur who, at the age of 18 years and 362 days,the summer will leave him lagging behind including 10-year-old Ainan, who has made headlines around the world earned a place in the Guinness Book of World Records as the planet’sa self-imposed target of earning a PhD and for his interest in chemistry and ability to recite Pi to more than 500 youngest university professor after being appointed to Konkuk Universitya degree in environmental law by the time decimal places. Cawley writes a blog detailing Ainan’s progress entitled in Seoul, South Korea.he is 22 ahead of a career in conservation “The boy who knew too much: a child prodigy”, and his experiences and That feat generated plenty of media headlines, as did her approachscience. thoughts on dealing with intelligent children as they grow up make for earlier this year to BP with an idea for stopping the oil leak in the Gulf gripping reading. of Mexico.PABLO PICASSO “No one is more alone than the brightest child in the school. If, that is, Sabur, who began speaking and reading aged only eight months,The supreme talents of they are truly much brighter than the others,” he writes. enrolled at New York’s Stony Brook University at 10 but has alsoa man who went on to “You see, the brighter a child is, the fewer are their peers – and for the simultaneously developed a high-flying musical career that has includedbecome arguably the most very bright indeed, they may have NO peers in their acquaintance at all. being principal clarinet with the New York Youth Symphony.instantly recognisable If your gift is at the level of one in a 1,000, you may well be the She attributes that musical outlet as being crucial to the seamless way inartist of the 20th only person in your school at that level. which she has taken her place in the adult world, fulfilling the exceptionalcentury were “If your gift is at one in 10,000, it is almost certain that this is a promise shown at such an early age when it is so easy to find examples ofclear long before lonely situation. For those whose gift is rarer still, it is likely that those who have struggled under the weight of expectations.he reached the they will never meet a peer in their entire lifetime. That is truly “Bright children are not superior to other children and are not nicerage of 20, but tragic. No wonder the gifted tend to be introverted – for what people because they are bright. They are, however, a distinct group forhis achievements choice do they have but a watchful silence?” whom additional provision and support is required if they are not tosurpassed anything Cawley has also written of the difficulties gifted children become disaffected and disillusioned with school,” Lyn Allcock says.that could have face when it comes to making friends. “I recommend a mix, “High-quality and appropriate provision is essential for a group ofbeen expected of for the full development of social skills. There should be bright students who potentially will go on to be our nation’s doctors, lawyers,the Spaniard. children of their own age – and bright older children, too, as inventors and entrepreneurs.” 039
  • 35. invenTOrinnovaTion the Saudi TED conference. “I am interested in ideas worth spreading, so I organised TEDxKFUPM so thatand ingenuiTy people like me will have a chance to share what they are passionate about with the world,” he says. It might not have a snappy title, but it is a significant event. Standing for Technology, Entertainment, Design,A youNg SAuDI INveNTor HAS ALreADy brokeN NeW grouND IN the TED conference has been heldTHe fIeLD of TeCHNoLogy – AND He IS oNLy JuST geTTINg STArTeD. annually in the United States since 1984 to disseminate ideas worthy of the attention in each of the fields. TheaT 23 years old, Emad conference covers science, arts, design,Daghreri is still young, yet he has architecture and global issues, and has,already carved himself a niche as a over the years, welcomed prominentprolific inventor. speakers from throughout the industry. Although currently a softwareengineering student at Saudi Arabia’s “i sTarTed To invesTigaTe moreKing Fahd University of Petroleum major invenTions& Minerals (KFUPM), he has six during high school.patents in place. Two have been wiTh [helP from] mysold to companies in Britain, one of Teacher, mr aBduwhich, sold to a start-up, promises to areashi, and my BesTrevolutionise the next generation of friend, moslih sahli,speed limitation devices. It is difficult we sTarTed a smallto fathom since Daghreri is necessarily cluB where we couldvague on details having sold the rights, meeT, geT geeky, learnbut he alleges that it will form a major and exPlore. in myadd-on to the next generation of speed second year in high school, The gifTedlimitation devices. sTudenT Programme “I have come up with many inventions in kfuPm inviTed mein the past six years, all of which have To aTTend a summerbeen an upgrade or add-on for existing Program. The ideasmethods or devices,” he says, although and The exPeriencesome he has been unable to patent. i goT from ThaT“Some were declined over particular Programme was myrules or had been registered by others key for The firsT PaTenT.” eMAD DAHrerIjust months or even days before!” The Saudi Arabian national, born Inspired by the ambitions of thisin a small village in the south of conference, Daghreri now organisesthe Kingdom, is the eldest of eight a TEDx event for Saudi Arabiachildren. His father is an elementary “I started to investigate more major used to destroy my computer games – with five of his university peers, anschool teacher – bringing him an early inventions during high school. With in a good way – when I was a kid,” he independently-organised but officiallyinterest and knack for complex algebra [help from] my teacher, Mr Abdu says. “I would combine two games into sanctioned offshoot of the real dealand algorithms – and his mother is a Areashi, and my best friend, Moslih one or add extra features. I liked the in the US. Why? Because he feels thathousewife. Sahli, we started a small club where idea of upgrading things not creating the Arab world deserves and needs As a child, he was encouraged to we could meet, get geeky, learn and new ones. I am always saying to myself: the same opportunity. If the Googleplay games and develop a creative explore,” Daghreri says. “In my second ‘What if I do this or add that to an philosophy has taught the worldimagination: “They still keep my old year in high school, the gifted student existing system – phones, cameras etc.’” anything, it’s cross-pollination of ideas.stuff – wires, old broken games – programme in KFUPM invited me to “Anyone can be an inventor. You just With patents and community-spiritedsaying, when I ask why, that I should attend a summer program. The ideas need to think: ‘How can I make this conferences under his belt, and a degreeshow them to my kids!” and the experience I got from that better’, applying your knowledge and on the way, what is next for Daghreri? However, he believes it was his programme was my key for the first experience.” After he graduates, he says he wouldparticipation in the 5th Gifted patent.” Outside of studying, Daghreri like to establish his own IT companyProgramme with KFUPM at his high prefers to keep his interests academic, and work towards developing the nextschool, part of the university’s robust insPired, as most inventors are, and volunteers for a number of big thing in mobile communicationoutreach programme, that launched his by the process of improving existing engineering societies with his peers devices. It’s not hard to see himinterest in inventing. technology, Daghreri started young. “I and in schools, as well as organising succeeding. 041
  • 36. WHaT DOyOu THinKwhaT do you Think??KNIht uoy od tahWIS e-LeArNINg AN effeCTIve AND vALuAbLe oPTIoN IN our INCreASINgLy ‘gLobALISeD’ WorLD?grADuATe AND PoST-grADuATe STuDeNTS DISCuSS THe ISSue AND SHAre THeIr oPINIoNS.wriTTen By joanne molina“ an organisation’s ability to learn and translate that learning intoaction is the ultimate competitive advantage,” said Jack Welch, former traditional course may find space in time in an asynchronic cyberCEO of GE. However, in a world that relies on mobile communications and the transformative powers of virtual and instantaneous “I once took a cognitiveinformation sharing, should the way we learn change as well? development online course with a According to the 2010 Sloan Survey of Online Learning conducted by mother of four living in Pakistan,the Sloan Center, a non-profit, member-sustained organisation, online a full-time financial plannerenrollment rose by almost one million students from a year earlier. The working in San Francisco, and asurvey of more than 2,500 colleges and universities nationwide finds 23-year-old student on medical CATHerINe DIfeLICe boxapproximately 5.6 million students were enrolled in at least one online leave from his home university duecourse in autumn 2009. to a debilitating physical ailment, “This represents the largest ever year-to-year increase in the number of to name a few. Our discussionstudents studying online,” said study co-author Elaine Allen, co-director boards were alive with energy, asof the Babson Survey Research Group, and professor of statistics and each of us brought divergent, yet equally thought-provoking ideas toentrepreneurship at Babson College. “Nearly 30 per cent of all college share and discuss. Such a mix of students would be nearly impossible inand university students now take at least one course online.”  a traditional classroom.  The study also found that almost two-thirds of for-profit institutions “The field of language learning and teaching has much to gain fromnow say that online learning is a critical part of their long-term strategy incorporating E-learning into its curricula. The internet provides a forumand that the 21 per cent growth rate for online enrollments far exceeds the for exchanges with native speakers in nearly every language studied intwo per cent growth in the overall higher education student population. major universities. The target language moves from a seemingly staticFurther, nearly half of institutions report that the economic downturn entity on a page to a dynamic subject that can be seen, heard and Googledhas increased demand for face-to-face courses and programmes, and on YouTube, Facebook, and Twitter. Grammar and pronunciation pointsthree-quarters of institutions report that the economic downturn has can be explored and discussed on the plethora of sights dedicated toincreased demand for online courses and programmes. language learning, many with downloadable sound and video files for The US Department of Education study, “Evaluation of Evidence-Based visual and aural elaboration. Students can collaborate with other languagePractices in Online Learning: A Meta-Analysis and Review of Online learners and/or participate in language exchanges. Gaining pen pals hasLearning Studies”, suggests that the numbers of enrolled students reflects never been easier!the effectiveness of online learning. Their study, which was specific to “As a language teacher and researcher, I am excited at the prospectscollege-level learning, analysed 51 factors that seem to influence learning of continued, thoughtful implementation of e-learning as a valuableefficacy. It concludes that distance higher education is more effective than educational resource. I look forward to working with students from alltraditional face-to-face learning, distance higher education combined over the globe as we come together in a virtual classroom.”with some traditional learning (blended or hybrid learning) is also more Catherine DiFelice Box is a doctoral student in Appliedeffective; while face-to-face learning alone is the least effective method Linguistics, Columbia University, United Statesamong the three types studied. Her research interests include analysing the language of the classroom, However, just because e-learning is possible, and even effective, does wherever and however the classroom is conceptualised, as well as cross-culturalnot always mean that it is preferable. We asked graduate and postgraduate communication in the classroom. She is also an instructor at Columbia university,students from universities around the globe to tell us if they thought where she teaches linguistic courses as well as english as a Second Languagee-learning was a valuable option. (eSL) to adults. She has previously taught both english and french to high-school uNIverSITy of reADINg & geTTy IMAgeS students in the united States and in europe.        E-learning is not only an effective and valuable option, it is a necessity! As opportunities for sharing ideas and imparting E-learning is a valuable option for education. Although I haveinformation widen, so must educational institutions provide new venues not experienced e-learning myself, I have worked closely with 01 University of Reading, UK.for learning communities. Information disseminated through the internet people who have. I think it is a great way of integrating technology with 02 Columbia University, easily accessed nearly anywhere, anytime. Furthermore, those whose education. 03 Students attending circumstances or physical location make it impossible to attend a “E-learning classes are just like any other classes except that you don’t 04 England’s Oxford University042
  • 37. 01 02 03 04
  • 38. WHaT DOyOu THinKhave to be with everyone else at the same time or in the same place. It “wiTh Branches in Three differenTsuits the majority of specialties, except the ones that needs hands-on or counTries, in addiTion To offeringclinical training. You can be anywhere in the world and learn with others The TyPical on-camPus courses, mywho are in diverse locations. universiTy also offers disTance “Classes can have online lectures uploaded in advance so they can be educaTion courses Providedaccessed anytime. It also has online real time classes so everyone can exclusively online. in This regard,meet once, twice or more during the semester; everyone still listens, e-learning is essenTial in caTeringcontributes and talks to each other. I think it is an amazing direction To The needs of sTudenTs fromfor education. You can enroll in any type of course for undergraduate or differenT counTries, wiTh variousgraduate education from different universities all over the world, without modes of sTudy. ThaT said, on-being in a particular location. It really represents globalisation; so the camPus sTudenTs such as myselfwhole world would be one school.” use e-learning as a comPlemenTarySoulafa Adnan Almazrooa received his Bachelor of Dental Tool, we do noT dePend on iTSciences from King Abdulaziz University, Jeddah comPleTely.Currently a candidate for a Doctorate of Medical Sciences in oral Medicine at ghada al shemaimrythe Harvard School of Dental Medicine. E-learning is a modern E-learning has overcome approach to education the geographical constraintsand has been strongly promoted and made it possible for us to findthrough the use of current the information we need, whenevercommunication and information we need it and from anywhere in thetechnologies. Governments around world. All the required informationthe world have realised its value and course materials are alsoand effectiveness and most have available 24 hours a day, seven daystaken steps to support it. a week. gHADA AL SHeMAIMry “E-learning has crossed “It saves a lot of time and energy 01 TurkI ALSoLAMIgeographical boundaries by when studying, relative to moreoffering online communities of traditional methods of learning.learning where individuals can E-learning has also helped inlearn and exchange knowledge with people from countries all over the enabling students to catch up on missed lectures, with each recorded andglobe at a reasonable cost using very simple techniques. It has facilitated uploaded online. Even if we have additional questions, we can still discussthe online teaching of many important subjects and courses, such as with our tutors, lecturers and other students using online forumseducation, languages and business, and it is now a feature of most schools “With branches in three different countries, in addition to offering theand universities in developed nations, and in developing countries, too, it typical on-campus courses, my university also offers distance educationis being accorded high priority. courses provided exclusively online. In this regard, e-learning is essential “E-learning necessitates the development of curricula that fit the needs in catering to the needs of students from different countries, with variousof the world market, for all courses must now be able to adapt quickly in modes of study. That said, on-campus students such as myself use e-learningresponse to the process of constant and rapid change. Modern e-learning as a complementary tool, we do not depend on it completely.developments include online degrees, short courses, professional “There are some negative aspects associated with e-learning. Withdevelopment programmes and online conferences. all activities provided in the online environment, students must be self- “E-learning has the advantage of not requiring expensive infrastructure disciplined in avoiding distractions. Other online activities, such as socialsuch as buildings, laboratories and classrooms. Instead they require only networking, gaming and web surfing are all time-consuming temptationscomputers with access to the internet. E-learning has expanded educational that can lead to procrastination.concepts such as self-paced study and autonomous learning, methods that “Furthermore, e-learning is not always reliable because of the technologywere applied only with difficulty in traditional learning environments. it requires. Not all students have ready access to computers and internet “Learners can access materials such as journals and recorded lectures connectivity, and there is no guarantee the online resources will always befrom anywhere in the world. Moreover, learning is not confined to available, as either the computer or the internet connection – or both – cantraditional classrooms; rather virtual classrooms are now common experience outages at any time.features of e-learning, and these allow discussion and interaction Ghada Al Shemaimry is a student at monash University inbetween learners in real time. This form of education also enhances the melbourne, Australia, studying for a Bachelors of Informationstandard of learning for students now have access to a much broader Technology.range of resources and ICT applications can offer learners more flexibility She elected to study abroad as part of a scholarship offered by the Saudito watch lectures more than once.” Ministry of Higher education.Turki Alsolami is a qualified English language lecturer at KingAbdul-Aziz University in Saudi Arabia. To answer this question, let us first agree that our major concernHe is currently pursuing his doctoral studies at flinders university in Australia, here is ‘learning’ and hence providing the knowledge and skillsspecialising in educational technology. His main research is about technology demanded by the learner is our first priority. The medium in which this 01 On campus at the University ofenhanced language teaching and learning.   learning is presented comes second. For centuries, education has been Reading, UK.044
  • 39. Such barriers include: cost, time or location. Being able to access your virtual classroom from anywhere in the world at any time is a luxury to some but a necessity to others. This could be seen more evidently in the case of postgraduate studies or workplace training. “E-learning could be considered an effective and valuable learning option provided that it is well-designed to address the needs and requirements of the learner. It should not be seen as the future rival to mainstream education that aims to replace it. It is a valid option that we could choose in order to satisfy our learning goals and balance education with our other commitments.” maram meccawy, computer science, PhD from the University of Nottingham, UK Dr Maram Meccawy has been a weekly opinion writer at Saudi Arabia’s leading daily newspaper, Al-Watan, since 2003. She received her master’s degree in distributed systems and networks in 2003 from the university of Hertfordshire and her bSc in Computer Science from king Abdul-Aziz university in 2002. I looked into e-learning this year for the first time, in order to capitalise on my languages. In the course I ultimately chose, students could opt for the full classroom experience; e-classes uNIverSITy of reADINg followed with a few classroom sessions; or a full e-class only option. “Each of the options were priced and scheduled differently, with classroom being the most rAfIf DAHLANdelivered through direct teaching expensive, yet less time consuming,in classrooms or privately at and the full e-class option beinghomes, so why are we now less expensive but spread over a longer timeframe.trying to change this legacy by “I had some reservations regarding e-learning, mainly the discipline itusing other means such as radio, would require in order to complete the course. A classroom environmentTV, distance learning and most automatically commits you to time and focus, while sitting at home in frontrecently e-learning or online of your computer does not.learning to be precise? “I was also concerned about working through any queries that would “The reason should mainly be inevitably arise while online.either because there is an added “After weighing my options, I decided on the partial e-learning course. MerAM MeCCAWyvalue that this type of tutoring could This offered me scheduled classroom sessions with an instructor, to whomprovide, or because of the barriers it I could refer any questions, while still reading and working through thecould help to overcome. If we simply e-class sessions relatively at my own pace. In my course, schedules arescan a text book, upload its content online and claim that the course is now decided the moment one signs onto the course and are geared to bean e-learning course, then what are the educational benefits that we have completed within the agreed time.introduced through technology here? All the student will do is to perform an “Not having to be in class full-time was a benefit, as it allowed me toonline ‘page-turning’. How is this different or better than them reading their continue my freelance work, while still being able to complete the course in aown text book offline? In fact using the text book would be a favorable option shorter timeframe than would have been possible with the full e-class option.over the online course as it is available 24/7, with no server problems, and it “I did struggle with self-discipline, just as I had predicted, and had tois also cheaper because no internet connection is needed. learn to manage my time better. “However, if the online course contains simulation, interaction and “In the end, my choice was most beneficial for me, given my needs andcollaboration activities, which have their own educational purposes, the abilities. Overall, I feel that e-learning is a very useful tool, with cost and timeresult would be a rich virtual learning environment where the values of benefits, particularly for people who need to work and study simultaneously.web-based learning are observed. Moreover, the ability to tailor and adapt “In the future I will not hesitate to use e-learning, but I’ll be hopingthe learning experience to suit each learner is another bonus that could to find courses that also offer real-time classroom experience, which Ibe achieved much easier in an online environment. It is all about the believe is still very important and cannot be replaced.”content and the interaction; an ill designed course in an isolated learning maria Ramos is a qualified fine arts curatorenvironment will only have negative effects on the learning process. Having returned to study in 2010 in switching careers and adding to her “On the other hand, there are cases where an additional aspect of qualifications. As a fluent speaker of six languages, undertaking an intenseonline learning is highly considered when selecting this type of learning. course in the teaching of languages cemented her knowledge and opened upI am referring here to its ability to waive some serious learning barriers. new channels and perspectives. 045
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  • 41. THinKing fOrWarD The comPeTiTion for growTh THe WorLDWIDe eCoNoMIC CrISIS HAS SeeN CoMPANIeS CHANge THeIr STrATegIeS To eNCourAge A More AgILe AND reSPoNSIbLe buSINeSS THAT CAN be HeLD ACCouNTAbLe for ITS ACTIoNS By aBdulaziz al-sowailim whaT an incrediBle two The crisis exPosed new markets for doing businessCourTeSy of erNST & youNg MeNA years it has been. In my role, I often some Basic flaws in are located. In MENA, we see that have the opportunity to talk to board Business sTraTegies. private corporations are still slow at members and CEOs from some of the These include decision making and much of the largest companies in the Middle East dePendencies on activity is coming from high net-worth and North Africa (MENA) region. shorT-Term caPiTal Individuals and government or quasi- Incredibly, they are all saying the same To fund longer Term government entities. More companies asseTs; remuneraTion thing: the business world has changed. are looking closer to home to sell their sTrucTures for What we have experienced in the managemenT which products, as opposed to internationally. past two years is not a mere recession were noT aligned To They are exploring Eastern or Asian cycle; fundamental changes to the shareholders’ values markets, whereas previously they did business environment have taken place. and encouraged business solely with the West. Intensity of competition today among excessive risk Taking; 2. A re-evaluation of cost businesses is even greater than 2008 The accePTance of competitiveness. Businesses have levels, suggesting that opportunities are high norms for realised that there is a limit to cost still scarce and new competitors have reTurn on caPiTal reduction and an excess of it can be emerged in the market place. which defied common counter-productive to growth. There So what are the fundamental changes sense; governance is, however, also an acceptance that issues aT The Board that have occurred? Who are these new new capital for growth must still level; and an aBsence competitors and what are successful of roBusT regulaTory come from cost rationalisation and businesses doing today to stay ahead of Processes To manage internal sources, as capital markets the game? risk in a numBer of and shareholders are still reluctant to The crisis exposed some basic flaws indusTries. provide liquidity. in business strategies. These include 3. Companies are striving to become dependencies on short-term capital to more agile in being able to respond fund longer term assets; remuneration 2010, we engaged in some extensive rapidly to market changes. At times, structures for management which were research involving 1,400 companies, this means more out-sourcing and less not aligned to shareholders’ values and including companies from MENA, building capital intensive structures or encouraged excessive risk taking; the covering over a dozen industry sectors. processes. acceptance of high norms for return on Part of this research has revealed that 4. Building stakeholder confidence capital which defied common sense; competition is coming from new by increased reporting and governance issues at the board level; players from developed markets and, communication with shareholders, and an absence of robust regulatory more interestingly, from existing suppliers, regulators, bankers and staff. processes to manage risk in a number players in emerging markets. There I see exciting times ahead for of industries. is a clear signal indicating the shift doing business. There will always The post-crisis era will therefore see of power from the West to East, with be challenges, but to be successful, much more participation in decision China, India, Russia, Brazil and MENA companies need to meet these making from board members and emerging as the new focus areas for challenges and understand that closer supervision from regulators, with doing business. remaining stationary is not an option. the risk that, at times, decision making So what are the high performing Every company’s strategy must have a will become slow when in fact the companies doing better than others growth plan going forward. intensity of competition dictates that it to win in the new market place? Our should be faster. research identified four key elements: Abdulaziz Al-Sowailim is chairman and Between October and November 1. A reassessment of where the Ceo of ernst & young MeNA 047
  • 42. scTa presiDenTspeaKs TO THinKThe Saudi Commission for Tourism and Antiquities (SCTA)launched an international exhibition in mid-2010, called Roads toArabia: Archaeology and History of the Kingdom of Saudi Arabia. Theexhibition’s international road trip started in one of the world’s mostfamous museums, the Louvre in Paris, before moving on to La CaixaFoundation, Barcelona, in November. Prior to going on tour, all artifactsshowcased in the exhibition were housed at the National Museum in theSaudi capital, Riyadh. Roads to Arabia features a wide array of recently excavated artifacts,including pre-Islamic stele and ancient objects from after the rise of Islam. According to HH Prince Sultan bin Salman, president, SCTA, the aimof the exhibition is to highlight the Kingdom’s cultural and historicaldimensions, rather than simply boost its tourism credentials. “The main objective of this exhibition is to introduce the differentcivilizations that lived in the Arabian Peninsula… The role of SaudiArabia today is not just political or economic. It had a role to play, longfixed in history,” says Prince Sultan bin Salman, president, SCTA. “Saudi Arabia’s cultural dimension has been largely unknown for theoutside world, especially the heritage it has from the various civilizationsthat inhabited its land one after another. We are now trying to highlightthis important dimension in an integrated fashion through theseexhibitions,” adds Prince Sultan.culTuralHH PrINCe SuLTAN bIN SALMAN, PreSIDeNT of THe SAuDI CoMMISSIoN forTourISM AND ANTIQuITIeS, SPeAkS exCLuSIveLy To ThINK AbouT HoW SAuDIArAbIA IS furTHer LeverAgINg ITS CuLTurAL CAPITAL.kingdom wriTTen By glenn freeman In the five months it was displayed at the Louvre, more than 160,000visitors from around the world visited the exhibition. According to figuresfrom exhibition management at the museum, more than 38,000 peoplevisited Roads to Arabia in its first month. In excess of 1,500 visitors perday strolled the halls of the Louvre to visit the exhibition, surpassing theaverage daily attendance figure of around 800 for other similar displays. Asked whether there has been a long-held recognition of theimportance of protecting Saudi Arabia’s cultural heritage, Prince Sultanindicated such preservation has now been carried out for almost half acentury in the Kingdom. “For over 40 years, the cultural heritage of Saudi Arabia has beenpreserved and protected. Over 600 sites are fenced, with guards appointedfrom amongst the local residents who look after these sites,” he says. Prince Sultan also explains that visiting experts participating in SaudiArabia’s many archaeological digs are often surprised at the sophisticatedsystems that are in place. “The European and American visitors and archaeologists who come to048
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  • 44. scTa presiDenTspeaKs TO THinK “saudi araBia’s culTural dimension has Been largely unknown for The ouTside world, esPecially The heriTage iT has from The various civilizaTions ThaT inhaBiTed iTs land one afTer anoTher. we are now Trying To highlighT This imPorTanT dimension in an inTegraTed fashion Through These exhiBiTions.” hh Prince sulTan Bin salman 02 03 01our country for field work are surprised to see this system of protection, located during surveys and excavations in the broader region,” he says. 01 hh Prince Sultan bin Salman,which they do not find in other countries,” says Prince Sultan. In unearthing the numerous artifacts and antiquities that are housed in president, Saudi Commission for While Saudi Arabia’s extensive expansion of infrastructure and the ever-growing number of museums, Saudi Arabia is also focusing its Tourism and developments in recent years is widely acknowledged, its efforts on a number of archaeological excavations. 02 Ancient wall drawings found onincreasing emphasis on cultural pursuits is less known. As Prince Sultan’s There are currently 16 excavations underway, with a number of these the Arabian Peninsula.comments attest, Saudi Arabia is already engaged in numerous projects launched in cooperation with American and European institutions. 03 Relics and ancient artifactsin this regard, including excavations, the construction of new museums “We have an ambitious ongoing survey and excavation program, and each unearthed in Saudi Arabia onand the restoration and expansion of existing cultural institutions. year several teams consisting of American, French, German, Belgium, Italian display in the Louvre. “Many new museums in various cities [of the Kingdom] are under and British scholars, in cooperation with Saudi archaeologists, carry out 04 Opening Day at the Roads toestablishment. In addition, several old historic forts, palaces and ancient surveying, exploration and excavations in almost all regions of the Kingdom,” Arabia exhibition, with hh Princebuildings have been converted into ethnological museums,” he explains. says Prince Sultan, also adding that the results of these scientific activities are Saud Al-Faisal, Saudi minister of “To date, nine museums have been lodged in old historic monuments, published annually in SCTA’s bilingual journal of archaeology, Atlal.  foreign affairs, and his Excellencywhile eight are currently works in progress.” In embarking upon its ambitious program of expanding the Kingdom’s Bernard Kouchner, French minister At present, there are 22 local, regional and national museums dotted cultural and heritage sites, Prince Sultan points out that it is pursuing global of foreign affairs, among theacross Saudi Arabia. The oldest of these is the Riyadh National Museum, best practice while also adding its own unique perspective. This is true for attendees.which was established in 1978 and later  shifted into the new National both Saudi Arabia’s museums and its numerous archaeological sites.Museum building. The National Museum in Riyadh consists of eight “We have adopted modern scientific and technical facilities, both in ourgalleries representing eras ranging from one million years ago through to museums and in the surveying and excavations we are conducting. Ourthose spanning the more recent history of the Kingdom. museums are both educational and heritage oriented,” Prince Sultan says. As Prince Sultan points out, each local museum displays local exhibits “We are modeling our traditional and cultural values and preservingexcavated from sites within relatively close proximity to the museum itself. our traditional urban and rural cultural heritage,” he adds.“Regional museums cover a wider range of exhibits, those that have been Asked whether the Kingdom is modeling its approach on those050
  • 45. ceO speaKing TO THinK culTure04 followed by other countries around the world, Prince Sultan emphasises  In the past, Dir’iyyah was an important stop on the trade route linking it is both borrowing ideas and also making new inroads in the process. the east and west sides of the Arabian Peninsula, in addition to its control “We are not copying, but adopting and integrating both our [own over the pilgrimage route to Makkah. systems] along with internationally accepted systems of displaying Starting in 2006, Saudi Arabian authorities began the lengthy process cultural heritage,” he says. of gaining official international recognition and protection of the site. Prince Sultan highlights Dir’iyyah as a poignant example of how it is This culminated in the registration of the Dir’iyyah historic district site preserving its old traditional heritage and monuments at the same time on the UNESCO World Heritage list in July 2010. as following and adopting the most advanced systems and processes. “We want the world to know our important cultural heritage, and the Located on the banks of Wadi Hanifa, on the outskirts of Riyadh, Dir’iyyah organisation of exhibitions such as Roads of Arabia is the best way to do is a historic oasis that had attracted urban settlements over centuries. this,” says Prince Sultan. Featuring a beautiful natural landscape, the area’s rich, fertile land is Having shifted to Barcelona, Spain towards the end of 2010, the characterised by stunning environmental heritage linked to stable human exhibition will later move to Russia, Germany and then onto various civilization that has constantly built and rebuilt itself over time. cities of the US. The history of the establishment of Dir’iyyah stretches as far back as Roads of Arabia will also be staged in Gulf countries, with Qatar and 850 AH/ 11446 AD, when historic local ruler Mani Al Muredi arrived. Bahrain also expected to host the exhibition in the year ahead. 051
  • 46. THinKrOunDTablereclaimingTheir hisToryA NATIoN’S ArTISTIC HerITAge AND LegACy Serve NoT JuST AS A SourCe of PrIDe buTALSo AS A key fACTor IN geNerATINg eCoNoMIC reveNueS. WITH TourISM SPeNDINgbACk oN TrACk AND CouNTrIeS ArouND THe gLobe STruggLINg for eCoNoMICgroWTH, THey Are INCreASINgLy TurNINg To HerITAge SITeS AS A SoLuTIoN.wriTTen By lisa vincenTinaTions and corporations around the worldknow that tourism is big business, a staggering US$850 billion plus their stakeholders,” says Michael Strong, founder of Flow, a US-based social entrepreneurship organisation committed to “sustainable peace,industry a year to be more precise. Countries on every continent continue prosperity, and happiness for all” in the next 50 years. “In the past, issuesto vie for an ever-larger slice of the tourist dollar and it is the emerging associated with environmental responsibility and labour standards havemarkets, rich in heritage sites, that account for a growing share of the pie. been most high profile for nations working in the developing world. The China has the Great Wall; Peru has Machu Pichu; and Egypt has its issue of respect for local cultures will be the next frontier.”Necropolis. The world’s top 500 heritage sites attracted 215 million The Global Heritage Fund (GHF), an international non-profittourists and generated more than US$24.7 billion in revenues – of that conservancy, is focused on protecting cultural heritage sites in developingfigure the top 50 sites garnered US$17 billion in revenues, with the Great countries, yet requires a promise from partners that they are committedWall topping the list, pulling in US$2.8 billion, according to a just released to a community-based, sustainable approach. Founded in Californiareport by the US-based conservancy Global Heritage Fund. in 2002, GHF has invested more than US$20 million and secured The United Nations has targeted tourism as a way for developing US$18 million in co-funding for 16 global heritage sites to ensure theirnations to increase economic prosperity and end poverty, but it is these sustainable preservation and responsible development.places which lack the resources to not only preserve and safeguard theirsites, but develop them as well. in guaTemala, one of Latin America’s poorest countries, the CourTeSy brITISH MuSeuM “Over the past decade, we have seen a welcome new trend evolving, restoration of Tikal, the immense Mayan ruin, has brought 12 millionmainly in developing countries,” said UNESCO director-general Irina visitors and US$200 million in annual revenues, according to GHF.Bokova at the Millennium Summit in New York last year. “I am speaking Nearby, deep in the Mayan biosphere, is Mirador, considered to beabout culture as an economic driver: a creator of jobs and revenues; a the cradle of Mayan civilisation and home to the earliest and largestmeans of making poverty eradication strategies relevant and more Preclassic Maya archeological sites. GHF, which classified Mirador as on 01effective at the local level.” the verge of irreparable loss and destruction, secured US$4 million from 01 A gilded mummy mask from the The UN’s World Trade Organisation views tourism as one of the most the Guatemalan Government and US$3 million from its private sector British museum.dynamic economic sectors, and a key driver in creating much needed (including Citibank Latin America and Wal-Mart Centro America) to 02 A statue of Ramses II, asgrowth and employment around the world. Yet there is a funding gap create an economically sustainable, 810,000-acre archaeological and displayed in the British museum.among wealthier nations and their less fortunate neighbours. wildlife preserve that will rival Tikal when it’s complete. In 2010, the site For poor nations, it is virtually impossible to protect and maintain generated US$1.5 million in revenues and is expected to jump to US$4cultural relics and sites without outside intervention. The financial crisis million in five years, the group says.of the past two years saw budgets shrink and donations slashed at both “Rich countries can take care of their heritage while poor countriesgovernment and non-governmental agencies. However, this has paved cannot,” says GHF founder Jeff Morgan. “There are lots of users at thesethe way for a new way of viewing the world and its heritage sites. sites, whether that be tourists, tour operators or even archeologists, yet More and more are beginning to embrace a more co-operative spirit very few saviors. That’s why the global community has to get involved.”among those that have and those that do not. With the growing global Late last year, the non-profit released a report, Saving Our Vanishingattention being given to sustainability, not only on the environmental level, Heritage: Safeguarding our Cultural Heritage Sites in the Developingbut also at community-based, local level, tourism is ripe for invention. World, detailing the state of conservation for the planet’s most significant “Conscious capitalism is a rapidly growing approach to business and endangered cultural sites over the past decade, and what it believes isin which firms are conscious of the impact of their decisions on all of a US$100 billion opportunity for developing nations.052
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  • 48. THinK rOunDTable CourTeSy brITISH MuSeuM 02CourTeSy brITISH MuSeuM culTivaTing creaTive 01 caPiTal Creative Capital, the economic benefits conferred by what some experts dub “GHF has discovered something that the international development centuries ago from the Parthenon; while Egypt is fighting to repatriate the Creative Class, remains the least world should take note of: Heritage sites can be economic engines for the Rosetta Stone and Nigeria pleads for the return of its Benin bronzes, understood, yet most important element of countries that desperately need sustainable industries,” says venture 30 of which were sold decades ago. the next economic paradigm, say many capitalist William Draper III, a managing director of Draper Richards But it is not alone. Institutions and private collectors around the world forward-thinking economists and thinkers. and Draper International, as well as chairman of the Draper Richards are embroiled in controversies surrounding their holdings, many of The creative industries, the engines of Foundation, a supporter of GHF. “The restoration of heritage sites can which were acquired legally. The debate rages as more and more nations generating creative capital, include transform people, countries and economies.” find themselves with the resources to demand the return of their cultural segments ranging from the arts to cinema With the tourism industry such a strong pillar upon which many property, often not only a symbol of nationalistic pride but also a key pull to design, publishing and information national economies stand, or hope to stand, it comes as little wonder that for tourism dollars. technology. In fact, this group of workers, cultural property has become such a hot topic. Stolen art and antiquities “Ultimately it comes down to matters of ownership, and how the many experts believe bring economic is estimated to be a US$6 billion annual industry, according to Interpol. world’s great cultural icons are to be shared,” says author Mary Beard, growth to cities and countries. Nations immersed in conflicts, such as Iraq and Afghanistan, or which a professor of classics at the University of Cambridge and a Newnham “Creative capital is the network of are extremely poor, become increasingly susceptible to looting. College fellow. “In the performing arts that problem is relatively easy to understandings, values, activities, and For instance, Iraqi cultural institutions and archaeological sites suffered solve. Shakespeare might have a special connection with Stratford, and relationships that individuals, organizations, major losses of priceless historical artifacts following the US invasion. Looting Mozart with Vienna – but we can all ‘own’ their works in performance and communities develop when they share from archaeological sites continues on a massive scale, between 7,000-10,000 anywhere in the world. what earlier generations have imagined artifacts stolen from the Iraq National Museum remain missing, according to “That is not the case with the [Elgin] Marbles. Where do they belong? and when they, in turn, generate and pass the US Federal Bureau of Investigation, which established an art crime unit Is it better or worse to have them scattered through the world? Are they on what they imagine,” states Dr. Dennie in 2004. With the stakes so high for many, the repatriation of art has become the possession of those who live in the place where they were first made? Palmer Wolf, the mind behind Wolfbrown, a hot-button issue among politicians and academia. Or are they the possession of everyone? The likelihood is that we will be a uS-based consultancy. “In a rapidly London, one of the top global tourist destinations, lures more than debating these issues for many years to come.” changing, complex world, communities five million visitors a year to its British Museum, the second most visited need to be resilient and adaptable in order museum in the world behind the Louvre in Paris. This repository of aT The end of last year, China, with its growing economic clout, to invent new possibilities and solve stubborn human history and culture, with its holdings of more than seven million called on museums and antique collectors around the globe to return problems such as pollution, job creation, objects, is among the largest and most comprehensive. Yet its collections relics looted from the Old Summer Palace in Beijing 150 years ago, but transportation, and affordable housing. To of antiquities, such a revenue generator for Britain, has repeatedly this is unlikely to yield significant results, experts say, at least for now. The accomplish these goals, we need people landed the institution in hot water. Greece lays claim to the museum’s Army Museum in Paris and London’s Victoria and Albert Museum are who can imagine, adapt, invent, and re- Elgin Marbles, a series of marble sculptures taken legally more than two just two institutions that possess items taken from the former resort for think old ways.” 054
  • 49. culTure 03 CourTeSy brITISH MuSeuM 04 06 Qing dynasty emperors – and are not about to hand them over without a fight. “As Western institutions and individuals are unlikely to respond, this call obviously targets domestic consumption, which the Chinese leaders hope will galvanise the nation,” states John Wong, history professor at the University of Sydney. 05 When Greece requested the return of the Elgin Marbles, it mobilised01 Gold sculptures from the Old and united the nation, recently completing the stunning New Acropolis Summer Palace in Beijing. Museum at the foot of the Acropolis in Athens that houses the other half02 A portion of one of the Elgin of the Elgin Marbles. marble sculptures. It seems that in some corners, the tide is turning toward repatriation03 A Qing dynasty sculpture from of cultural objects and art, as more begin to consider such gestures in a Beijing. different light. The New York Metropolitan Museum in November agreed04 Jeff morgan, founder, GhF. to send 19 items, including a bracelet and a small bronze statue of a dog,05 mary Beard, professor, University excavated from the tomb of the boy king Tutankhamun, back to Egypt. of Cambridge Zahi Hawass, secretary general of the Supreme Council of Antiquities,06 A famous medieval mask found has led a vigorous campaign to reclaim Egyptian cultural heritage. He on Suffolk, England is displayed continues to lobby the British Museum to have it return the granite-like at the British museum. inscribed Rosetta Stone, which the museum came into possession of in07 Irina Bokova, director-general, 1802. He would like to see the Stele, along with other retrieved objects, UNESCO. displayed in a new national museum due to open in Cairo in 2012. “It’s a question of our heritage. It’s the best that Egypt has,” Hawass says, boasting that 6,000 relics have finally come home. 07 055
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  • 51. energy NuCLeAr PoWer, oNCe DerIDeD for ITS PoTeNTIAL ProbLeMS, IS SeeINg A reSurgeNCe IN INTereST AS CouNTrIeS ACroSS THe WorLD Try To ProvIDe eLeCTrICITy for THeIr rAPIDLy exPANDINg PoPuLATIoNS. P wer surge nuclear energy is undergoing something of a renaissance, with a number of countries expressing renewed interest in wriTTen By glenn freeman the fuel source. According to estimates from the International Atomic France currently leads the world in deriving the highest proportion of Energy Agency (IAEA), in 2009 13-14 per cent of global electricity its energy from nuclear sources, with French company Areva extremely demand was met by nuclear power. proactive in creating partnerships both domestically and abroad. In a Across the United States, Britain, Europe, Asia and the Middle East, 149 recent interview with BusinessWeek in the US, Areva’s chief executive, new nuclear reactors are due to be commissioned over the next 20 years. Anne Lauvergeon, said: “We are experiencing a nuclear renaissance Many countries already place significant emphasis on nuclear sources in not only in Western countries but in the rest of the world [including] meeting their national energy demands. France has the highest nuclear China and India. Also, we have newcomers now in the game. That’s very input at 78 per cent, followed by Belgium at 54 per cent, while the US exciting. And it’s also very good business for us.” stands at 20 per cent, Britain at 19 per cent and China at just two per cent. As Lauvergeon’s comment indicates, other nations are seeking to Among the advantages of nuclear power is its much higher efficiency bridge the gap and increase their ratio of power generated by nuclear relative to hydrocarbon-fuelled sources. According to Holger Rogner, sources. In his most recent State of the Union address, US President head of planning and economic studies at the IAEA’s Department of Barack Obama cited the need to build “a new generation of safe, clean Nuclear Energy, this is one of its major benefits. “That’s where the benefit nuclear power plants” in the US. The British Government is also ramping of nuclear comes in. Fuel costs are extremely low compared with gas and up its commitment to nuclear energy, with 10 sites in England and Wales coal. A barrel of oil has a fraction of the energy yielded from a pound of recently approved for new nuclear power stations. uranium,” he says. Proposals for the new generation of nuclear plants are being put forward Although nuclear has high set-up costs, once plants are up and running, as Britain seeks to address concerns over potential power shortages in the production costs are a fraction of those demanded to create the same the next 15 to 20 years. With the majority of Britain’s ageing nuclear kilowatt hours through burning hydrocarbons. “What matters is not only infrastructure due to be decommissioned by 2023, within the past two the investment costs, it’s the generating costs,” Rogner says. years the Government lifted its moratorium on nuclear expansion. Another advantage it holds versus conventional coal and gas facilities Britain and the US were among a number of nations that halted their is its lower emissions of greenhouse gases, though the long-running nuclear energy programmes in the mid-1980s, largely in response to the debate continues around the disposal of spent uranium and other toxic Chernobyl disaster of 1986. This incident at a reactor in Ukraine, considered by-products it produces. At the December 2010 climate change talks in the worst nuclear accident in history, raised severe concerns about the safetybrITISH NuCLeAr fueLS PLC Cancun, the United Nations Framework Convention on Climate Change of Soviet nuclear power and the nuclear fuel industry in general. (UNFCCC) stopped short of advocating nuclear as a clean fuel source However, advocates of nuclear energy insist that improvements in ratified by the Kyoto Protocol. However, the UNFCCC did leave open technology, regulations and construction standards of nuclear plants the possibility that nuclear could be included after 2012, when the first since this time largely eliminate the possibility of similar incidents in the 01 A plutonium storage facility, UK. commitment period of the Kyoto Protocol expires. future. 057
  • 52. energy brITISH NuCLeAr fueLS PLC 01 International concerns over the enriched uranium that is requiredto power nuclear plants, also a key component of nuclear weapons, is 02another obstacle to renewed focus on the fuel source. Perhaps the mostprevalent test case of this is Iran, which has been working toward civilnuclear capability, including its own enrichment facilities, since 1994. energy, combined with renewable and traditional sources, in meeting the While countries with a history of nuclear power generation are once Kingdom’s future power demands.again looking to boost capacity, others are approaching nuclear capability “We have established that nuclear energy has substantial investment,for the first time. A number of countries in the Middle East have operational and technical advantages, mainly that its capacity coefficientexpressed an interest in nuclear energy in recent years, including Saudi is higher than conventional power generating stations,” he said, alsoArabia, Qatar and the UAE, with the latter having signed a deal with the pointing out that though initial capital investment is high, operationalUS in December 2008 after already gaining approval from the IAEA. and maintenance costs are very low. The rapid expansion of many countries in the region – in particular In addition, he cited the long operational life of nuclear fuel cyclesSaudi Arabia and Qatar in more recent times – demands huge amounts combined with the price competitiveness of nuclear fuel relative to fossil 01 Part of the Thermal Oxideof electricity, as does the desalination of seawater. In Saudi Arabia, the fuel. “Nuclear generated electricity is presently economically competitive Reprocessing Plant, Sellafield, UK.biggest Arab economy, demand for electricity is rising at an annual rate of with fossil fuel generated electricity, as far as international prices are 02 The Tamari nuclear power plant,eight per cent, with demand set to triple to 121,000MW by 2032. concerned,” Dr Bin Yamani said, adding that nuclear safety standards Japan. have witnessed “tremendous progress”.wiTh This in mind, the Kingdom is currently establishing a national He also said that if Saudi Arabia’s domestic demand for energy continuessustainable energy initiative, comprising a combination of nuclear and to rise at current levels “this is bound to adversely affect the Kingdom’s oilrenewable energy sources. It plans to invest as much as US$80bn over export capacity within two decades, and consequently affect its domesticthe next decade, in boosting its power generation capacity to more than and the world’s economy”.67,000MW, up from its current rate of 46,000MW. This last statement contains one of the core arguments in favour of Speaking at a recent conference, HE Dr Hashem Bin Yamani, nuclear fuel for states within the Middle East. With hydrocarbons onepresident, King Abdullah City for Nuclear and Renewable Energy, said: of the region’s key exports, in order to keep its economic development“The proposed national energy initiative cannot rule out the nuclear turning while also reserving more of its valuable oil and gas resources foroption.” He outlined the numerous arguments in favour of nuclear export, nuclear power is an obvious alternative.058
  • 53. PeTr PAvLICek / IAeA 01 ArTHuS-berTrAND 02 MITSubISHI HeAvy INDuSTrIeS, LTD brITISH NuCLeAr fueLS, PLC 03 As Rogner explains: “When oil hit US$50 and US$60 a barrel, in nuclear power, suddenly economic rationale said: ‘If you burn the barrels at home, you create much less revenue than if you sell it in the open market.’ From the windfall, you can easily finance a new nuclear power plant – that’s where the rationale comes in.” in The middle East, Bahrain has also entered into nuclear co-operation agreements with the US, while Oman and Qatar are investigating the01 Cooling towers at viability of their own nuclear facilities. Jordan, which currently imports coal power stations have been banned here since 1997, with many due for Grundremmingent nuclear plant, 95 per cent of its energy needs, plans to build a nuclear power plant by decommissioning between 2020 and 2030. Germany. 2017. Its Committee for Nuclear Strategy aims to source 30 per cent of its China, which already has nuclear power plants, is also planning02 Nuclear systems and components electricity from a domestic nuclear facility by 2040, having signed deals further expansion of its nuclear capability, with a view to exporting undergo regular maintenance with its Canadian counterpart along with French energy company Areva. nuclear components and expertise from 2013. India’s nuclear energy checks. Outside the Middle East, other emerging regions including Asia and ambitions are also building momentum. It has entered into bi-lateral03 A nuclear plant’s fuel removal India are also eyeing nuclear power with increasing interest. Hong Kong trade agreements with the French Government, covering civil nuclear pond in Sellafield, UK. is considering implementing nuclear energy generation to supply around energy among other areas. Late last year, the subcontinent’s Nuclear half its electricity by 2020. According to a policy document from the Power Corporation of India signed a US$25 billion deal with Areva on special administrative region’s government, “our objective is to reduce the construction of a nuclear power plant which will ultimately triple the the proportion of coal in the overall fuel mix”. nation’s nuclear power generation capabilities to more than 10,000MW. As part of its international obligations under the Kyoto Protocol to As the global population continues to expand at unprecedented levels, reduce its greenhouse gas emissions, Hong Kong may replace many of its bringing a corresponding demand for energy, nuclear power seems coal power plants with nuclear plants over the next 10 to 15 years. New certain to build new momentum as a fuel of the future. 059
  • 54. inDusTry l wriTTen By lisa vincenTiThe redux ofiT xappears that luxury shoppers are slowly shedding their shame aftera drastic pullback in spending in 2009 amid the widespread economic AfTer SufferINg IN THe DoWNTurN, THe ouTLook for THe gLobAL Luxury MArkeT IS SLoWLy begINNINg To Look uP, ecalamity which shook up consumers around the world. The world’swealthiest are now ready to pull out there Gucci wallets once again. THANkS IN LArge PArT To THe groWINg “The global crisis in worldwide luxury goods sales came to an end in rICH IN CHINA. buT, exPerTS SAy, THere Arethe fourth quarter of 2009, ending a first-ever full year decline in sales ofeight per cent, and is now projected to rise 10 per cent in 2010, [nearly NeW CHALLeNgeS fACINg THeSe brANDSeclipsing its historical market peak of US$227 billion in 2007],” proclaims AS THey Seek To reJuveNATe THeMSeLveSbusiness consultancy Bain & Co’s ninth edition of its bellwether LuxuryGoods Worldwide Market Study. None the less, not all areas of the luxury market are equal and despitethe gains, some experts caution that the numbers don’t tell the whole story.“The strength of the recovery was a surprise,” says Claudia D’Arpizio,a chief luxury analyst in the Milan office of Bain, which at the end of2010 released its luxury report on behalf of Fondazione Altagamma - anassociation of Italy’s top luxury companies. The increases posted in 2010 over the prior year were driven by salesof smaller luxury goods, for example the sales of shoes and accessoriesare expected to increase by five per cent; followed by a four per cent risein watches and jewellery sales. “Brands that offer luxury treats – glasses,belts, handbags, etc - are less vulnerable,” says Nikhil Gharekhan, seniorvice-president at Millward Brown, an international consulting firm. D’Arpizio says the recovery is rooted in strong growth worldwideand political stability in the United States, historically the largest luxurymarket followed by Japan. “Luxury goods markets are stabilising. Weare seeing less discounting and more signs of increasing consumerconfidence,” she comments. What’s more, the sale of super-luxury automobiles, by marques suchas Rolls-Royce and Ferrari, and mega-yachts began posting gains in theearly months of 2010, pointing toward a tepid rebound in those sectors.In fact, in the US, the world’s largest luxury car market, sales may jump42 per cent in 2010 after plummeting 30 per cent in 2009, according toautomotive industry researcher IHS Global Insight. Likewise, the super-yacht industry began recording some impressive sales, signaling that themarket, while still tumultuous, will continue to recover. Louis Vuitton has continued to remain relevant and appealing.BuT some luxury market experts remain cautions, saying the storydoesn’t end there and that the market going forward will likely undergoradical change, whether in the form of bankruptcies and consolidations,changing consumer attitudes in more mature markets, or the fact thatChina will soon replace the US as the world’s second largest luxury goodsconsumer (according to a report by World Luxury Association). “There’s still another shoe to drop,” says William Susman, COO of NewYork-based boutique investment bank Financo. “What the economiesthroughout Europe are going to go through in the next few months, Ithink, will be dramatic… I don’t think that the story is over yet.”060
  • 55. Many US companies which had relied on Europe, where government subsidies allow consumers to take home more disposable income, to help bolster sales during the worst of the recession may find their expectations diminished. Furthermore, so long as the US unemployment rates continue to hover near historic highs of 10 per cent, aspirational luxury shoppers (those with an income of between US$150,000 to US$300,000), who helped prop up the boom in the beginning of this decade, have cut back significantly and aren’t likely to loosen their purse strings until unemployment rates dip to around five per cent, says Milton Pedraza, CEO of New York-based Luxury Institute, a research organisation focused on wealthy consumers. In addition, luxury marketing expert Pamela Danziger, president of consultancy Unity Marketing, notes that Bain’s research is dominated by global luxury brands which have been successful by expanding projections into emerging markets such as China and India. She says that such an approach glosses over the fundamental driver of the luxury market – the consumer. “Luxury brands have decided that the best route for winning back revenue post-recession is to go up-market and focus on pushing ultra- expensive products,” she says. “However, while ultra-affluent consumers have recovered from the slump and are likely to purchase such items, their investments alone will not provide the revenue luxury brands need.” Yet in spite of the gains in sales last year, luxury manufacturers that want to survive in the future cannot afford a business-as-usual approach. Prestige brands are fighting the perception that the characteristics that differentiate luxury goods – superior quality, craftsmanship, customer service and design – are declining. “Quality, craftsmanship and service are declining at a time when consumers are more discerning but have less money to waste,” Pedraza says. “Luxury brands need to start focusing on what customer serviceBaccarat crystal is among the brands means: they need to start to out-behave – not just outperform – the Chanel is one of the luxurytipped to remain strong. competition.” icons that remains successful. 061
  • 56. inDusTry 01 02 03 04 01 Rolls-Royce continues its impressive popularity. 02 Guerlain luxury French fragrance. 03 Pierre hardy sandals. 04 Pierre Frey fabrics. Not all companies are getting it wrong, he adds, pointing to such luxury that meet the needs of these new segments will be in the best position toicons as the Ritz-Carlton, Four Seasons, Lexus, Porsche, Louis Vuitton, keep growing for the next 10 years.”Chanel and Tiffany’s, all of which have maintained strong customer It is the Chinese market that rescued the luxury market last year. Theexperiences and have enjoyed success as a result. market grew an astounding 30 per cent year-over-year, reaching above What’s more, affluent spenders are hungry for unusual items, adding US$12 billion, according to Bain, which expects it to become the thirdpersonal and unique to calculations of value, according to the annual largest consumer of luxury products and services by the middle of theMillward Brown BrandZ ranking of the Top 100 Most Valuable Global decade. Purveyors of super-cars, yachts and luxury consumer goods areBrands 2010. This study finds that brands which emphasised heritage all counting on the Chinese market for future growth.and enhanced exclusivity, such as Hermès, did better than brands that Today, China is the world’s second largest economy with a nascentpursued the mass market. Gucci, for example, returned to its roots with affluent class of 300 million people, and the country, along with otheran equestrian look. emerging markets during the economic downturn, helped first-class “Louis Vuitton, the most valuable luxury brand over the past five brands weather the storm far better than those that lacked a globalyears, continued to position itself as timeless and authentic. Rather than presence, shoppers in those markets are becoming more fickle as well.compromising its brand value during the recession, it increased prices, “The French luxury sector leads the world with 75 out of 200 global 04invested in creativity and heightened the focus on quality,” D’Arpizio says. luxury brands, one-third of global luxury business volume and aggregate 04 Torstern müller-Ötvös, CEO, “We’ve seen a number of new behaviours and trends emerge now that sales of US$31 billion,” says Elisabeth Ponsolle des Portes, president Rolls-Royce motor Carsthe crisis is reversing. The luxury shopper of this decade is more likely to and CEO of Comité Colbert, an association of France’s most prestigiousbe Chinese, more likely to be male and more likely to be young. Brands brands, including Baccarat, Hermès, Chanel. “The companies belonging062
  • 57. Luxury yacht sales picked up in early 2010. to the Comité Colbert represent one-quarter of the world luxury industry John Lobb designer shoes. - French luxury is and will continue to be more and more global. Europe, the United States and Japan stay important markets for us, but the demand for French luxury products has been very high these past [few] years in the new territories for us, such as China, Russia, India, Brazil and the Gulf countries.” China, with its rising economic muscle and just-acquired wealth, is proving to be the latest battle ground for chichi brands jockeying for position. So while consumers in developed markets are expected to seek out investment pieces rather than frivolous indulgences, the Chinese about 20 per cent of Beijingers owning at least one Louis Vuitton bag, the have no qualms about flaunting bling, states BrandZ Top 100. study writes. In spite of the country’s surging appetite for luxury goods, recent Although it’s unlikely that the likes of Gucci will ever fall from favour, research carried out by MSN’s China portal, suggests that consumers in the industry is at a crossroads both for the Chinese luxury sector and 03 top-tier cities such as Beijing are growing increasingly disenchanted with for upscale brands in general. The most powerful marques in the world03 milton Pedraza, CEO, traditional powerhouses like Louis Vuitton and Hermès. What raised not only have to re-convince many of China’s elite of the exclusiveness of Luxury Institute eyebrows wasn’t that a substantial proportion of people purchase luxury their products, but their long-time clients in developed markets as well. items, but rather that more are searching for luxury outside of the top “It better damn well be unique and it better be luxury,” says Oscar de la brands. Their reasoning? It’s becoming “too common” with, for example, Renta CEO Alex Bolen. “If it’s a ‘me-too’ product, good luck.” 063
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  • 59. Travel eco TriP AS eCoTourISM HAS MoveD froM A NICHe HoLIDAyINg oPTIoN ToWArD ADoPTIoN by THe MASSeS, buSINeSSeS HAve JuMPeD oN THe bANDWAgoN. SoMe See THe MoveMeNT AS A booN To eNvIroNMeNTAL ProTeCTIoN AND LoCAL CoMMuNITIeS, yeT NoT ALL efforTS geT THe greeN LIgHT. wriTTen By lisa vincenTi as education levels rise and attitudes shift to embrace a green lifestyle, attention is shifting away from the narrow focus on purchasing sustainable products or living more “greenly” at home. Today, more and more Western travellers, who dominate the eco-tourism sector, are requiring that their journeys lead them to not only hotels that score high marks in the green category, but also to places where the money they spend supports local communities and protects the surrounding environment. Once the preserve of 1970s environmental activists, who would travel to exotic locations to soak in the local wildlife, flora and fauna, and help communities protect their natural resources, eco-tourism has moved into the consciousness of mainstream travelers. It is growing three times faster than the tourism industry as a whole, according to Washington DC-based the International Ecotourism Society (TIES). Thus an increasing roster of businesses and governments are jumping on the eco bandwagon, with the claims of some falling far short of the environmental and community goals that serve as the lynchpins of genuine ecotourism. “Tourism is a US$3 billion-a-day industry and over 40 per cent of international trips have a developing country destination,” says Jonathan Mitchell, head of the travel programme at the Overseas Development Institute, a UK-based think tank on economic development. “Southern governments are increasingly realising that, in addition to bringing jobs, investment and foreign exchange, tourism can incentivise the conservation of a destination’s cultural and natural assets. In addition, tour operators are beginning to respond to customer pressure for moreCourTeSy of ALILA reSorTS environmentally and socially sustainable holidays.” Yet with the meaning of what constitutes ecotourism hard to define, it comes as little wonder that no industry-wide consensus has been reached and no cohesive standards have been embraced. TIES says ecotourism is “responsible travel to natural areas that conserves the environment 065
  • 60. Travel 02 03 01 04 05CourTeSy of ALILA reSorTSand improves the well-being of local people”. Yet many governments oppose such a system in part because the very poorest players would lack 01 Rice paddies, part of a Balineseand tourism industry insiders consider ecotourism as the equivalent the resources and technical expertise to earn and retain such a label, and sustainable travel any sort of tourism based in nature, while environmental groups Harold Goodwin, director of the International Centre of Responsible 02 An eco-friendly holiday villa in thewant to tighten the loopholes insisting that ecotourism is nature-based, Tourism, and Justin Francis, executive director of maldives.sustainably managed, conservation supporting and environmentally (a leading international travel agent for responsible holidays), launched 03 View from Soori Beach Villas, Bali.educated. a campaign to oppose the Sustainable Tourism Stewardship Council’s 04 Jonathan mitchell, Overseas The failure to accept a definition of ecotourism has led to widespread plans to develop Global Sustainable Tourism Criteria. Development Institute.confusion among travellers and has seen critics accusing many eco players Despite the conundrum, there are plenty of visionaries who continue to 05 Local artists from a Kenyan eco-of green washing, a trend towards the commercialisation of tourism work to deliver genuine benefits to travellers and locals alike. Awards are retreat.schemes disguised as sustainable, nature-based and environmentally one simple way in which responsible destinations can raise awareness offriendly. Can a multinational corporation that builds an ultra-luxury what they do and also help consumers cut through the clutter by offeringresort, with fully equipped, air-conditioned rooms on a pristine stretch them a glimpse of the best of the best.of beach in an underdeveloped region, and employs locals to clean andserve guests, really call itself an eco destination? Yes they can and they do. The virgin holidays Responsible Tourism Award, launched “For the past 20 years or so, the reality of ecotourism has largely failed six years ago by, handed out 13 awards in ato meet its promise,” says Joel Makower, a green business expert and co- number of categories in 2010. Nihiwatu in Indonesia was declared theauthor of Strategies for the Green Economy. “The notion that tourism overall winner of the awards – demonstrating how tourism can used tocould not only have a lighter footprint but also promote social and alleviate poverty in remote places. Thanks to the tourists who visit thisenvironmental good seems to have been lost amid the vast hodgepodge hideaway resort on the island of Sumba, malaria infections have droppedof what passes as ‘ecotourism’ these days: five-star spas, jeep safaris, posh by 85 per cent, saving the lives of 53 children in the past two, ‘sustainable development tours’, and all the rest.” “As consumer awareness and demand for sustainable products grows, For the moment, there exists no international framework of what there is certainly increased pressure on the supply side,” says Carlosis required to claim “eco” status and the setting up of an international Bolaños, CEO of Costa Rican beach resort Punta Islita, which receivedaccreditation programme has been controversial from the outset. Some a Virgin Holidays Responsible Tourism Award in 2010 for its strong ties066
  • 61. 01CourTeSy of ALILA reSorTS to the local community. “I would not go as far as saying that ecotourism “The ambition was to create a profitable international business, is a victim of green-washing – the ideal remains strong. Nevertheless, and to help re-invent travel and tourism – one of the world’s largest there is a danger of falling into least-effort complacency. Hotels must industries – for the benefit of travellers, the industry, and local people understand that turning off the lights or forgoing daily towel laundering and conservation,” says Justin Francis, founder of the travel agency and is not enough. The commitment must go beyond basic efforts. The costs former head of marketing of the Body Shop. are significant but the rewards are manifold.” Users can search for and book travel through the site, but they can Costa Rica, Ecuador, Nepal, Kenya, Madagascar and Antarctica are all also read operators’ responsible travel policies, review how they meet top ecotourism destinations, and generate a significant portion of their responsible travel criteria, see how every trip benefits local people and revenues from the travel industry. But critics have long complained that the environment, and read independently published travellers’ feedback, 02 heavy traffic and irresponsible tour operators have resulted in cruise ship which is used to help tour companies improve their practices. anchors and sewage damaging coral reefs; that golf courses suck up valuable Conversely, Long Run Destinations (LRDs), set up by the not-for-01 Alila Villas, hadahaa, maldives. water resources; and that all-inclusive package tours see about 80 per cent profit Zeitz Foundation, selects locations around the world that work02 hotel Unique, São Paolo. of their money go to airlines, hotels and other international companies. on sustainable, mostly tourism-driven enterprises, while fostering Despite the misinformation and confusion in the marketplace, growing community development and cultural stewardship. Currently, there are entrepreneurship is fostering some new approaches that make a very nine LRDs located across Brazil, Costa Rica, Indonesia, Kenya, Namibia, real contribution not only to local conservation but also to community New Zealand, Sweden and Tanzania. prosperity. There is a middle-ground to be found between those that The Zeitz Foundation, in addition to offering an “ecosphere retreat” eschew any kind of air travel to an eco-destination because of its immense certification system, invests in initiatives that maintain or strengthen the carbon footprint and those that blithely lump any lodgings amid natural integrity of ecosystems and their ability to deliver services, such as clean beauty in the ecotourism category. water and air, carbon sequestration, and healthy soils. It also develops and the Long Run Destination, embrace new financing mechanisms to strengthen private sector involvement. a optimistic spirit that takes multiple players into account from the “Sustainability does not need to come at the sacrifice of economic traveller to the hotel owner. The company, which booked US$14.4m prosperity,” says Jochen Zeitz, the founder of the organisation. “Through worth of holidays in 2009, pursues what it calls responsible tourism, projects that balance conservation, community, culture and commerce, perhaps a better, less rigorous label for many seeking a conscientious I hope to encourage a new model for sustainable development – one that travel experience. shows how working toward ecosphere safety can be commercially viable.” 067
  • 62. some like it haute AS THe Luxury MArkeTS begIN To reCover foLLoWINg THe fINANCIAL CrISIS, frANCe’S frAgILe HAuTe CouTure INDuSTry IS SHoWINg SoMe SIgNS of rISINg froM THe ASHeS. wriTTen By ashlee Beard CourTeSy of frANCk SorbIer CourTeSy of eLIe SAAb 01 02068
  • 63. sTyle CourTeSy of ALexIS MAbILLe in 1947, as France began the process of rebuilding a country torn apart by the Second la Couture du Prêt-à-Porter des Couturiers et des Créaters de Mode hopes to preserve. World War, a couturier by the name of Christian France’s resistance to change can be frustrating, Dior caused a scandal. Feminists argued that but it is also one of the country’s greatest strengths, the fragile silhouette and cinched-in as the French are inherently patrimonial, fiercely waistline of Dior’s “flower ladies” were protecting long-established artisanal skills like impractical and the 10-80 yards of no other country in Europe. While the West fabric needed to create the exaggerated takes the moral high ground over slave silhouettes was nothing short of frivolous. labour – many top fashion companies As New Liberty magazine reported, enjoy vast profits at the expense of the average woman preferred to buy underage and underpaid workers food, while in toiling in sweatshops in developing Russia it was countries – the craftsmen and regarded as “an women of the haute couture example of the ateliers receive respect, rights deterioration and, of course, a decent of American salary compared to their capitalism”. overseas counterparts. This season, There is also the the house’s current magic of haute creative director, John couture, which Galliano, created a storm should never be akin to his audacious underestimated. predecessor as he sent a Watching the bevy of lithe, flower-like theatricality of the models swaying down the costumes created by runway. Enrobed in swathes 03 the big houses like Christian of silk and tulle, the laboriously Dior, Chanel and Jean Paul Gaultier is a detailed gowns were, as we have come to spectacular sight, guaranteed to grab headlines, but more expect from Mr Galliano, absolute works of art. However, in the cyclical importantly the twice-yearly presentations have become pattern of fashion, originally observed by Dior, it was not Galliano’s justifiable marketing investments. Although the number of unquestionable talent that was under scrutiny, but its wearability. clients remains as guarded as haute couture itself, the allure As Susannah Frankel, of British newspaper The Independent, wrote: of its quality, exclusivity and therefore desirability rubs off on “With the West teetering on the brink of a double-dip recession and ready-to-wear sales and revenue made though licensed millions facing up to cutbacks and job losses, does anyone really need products from accessories to fragrances. In addition,01 Franck Sorbier demonstrates the a floor-sweeping gown that looks like a tulip, took more than 500 PR garnered through front row and red carpet celebrity craftsmanship of haute couture. person hours (and 270 metres of fabric) to make, and is priced endorsements is priceless.02 Full-on glamour from red carpet at tens of thousands of pounds?” Haute couture is no stranger to However, for the smaller couturiers that cannot favourite, Elie Saab. derision, often written off as the folly of wealthy spouses and boast such lucrative licensing deals, such a costly03 youthful femininity from Alexis Hollywood A-listers, but there is so much more to it than that. exercise can be a gamble, as the closure of the house mabille This is what Paris’ couturiers and the Féderération Française de of Christian Lacroix last year proved. Despite the ancillary 069
  • 64. This season Chaumet celebrated the tiara, featuring a collection of 200 tailor made tiaras.CHAuMeT 070
  • 65. sTyle 01 02 income from diffusion lines in ready-to-wear, home “They are getting younger and younger, accessories and fragrances, the company reportedly many of them are in their 20s and 30s, and never recorded a profit throughout its 20-year history. usually come first with their mothers and then While houses like Givenchy, Dior and Balenciaga become regulars.” operate within the security of luxury conglomerates This season there was also a clear emphasis on LVMH or PPR, independent French couturier Franck wearability and versatility. Designers presented Sorbier’s atelier, which is modest and has seen tough separates, offering clients a haute couture capsule times during the recession, remains one of the best collection. It was certainly a contemporary approach and examples of the patrimony and craftsmanship that is the judging by reports that the industry is finally seeing better foundation of haute couture. days, maybe that’s exactly what it needs. His collection of beautiful gowns constructed from As Lebanese couturier and newcomer, Rabih Kayrouz, recycled food packaging, discarded hat raffia and says: “Today’s clientele seek a new approach to ‘couture’, horsehair with flurries of silk organza, handmade Soltiss lace one that is more accessible, less venerated and less from Lyon and silk crepe, set an example to both the influx of restricted. They seek instant empathy and comfort in guest members and to well-established houses of what haute couture is order to keep up modern life while benefiting from about. Maison Martin Margiela also followed a kind of “couture povera” artisanal innovations and craftsmanship. In short: a style, created from recycled garments collected since the founding of the passion for couture moulded into the rigour of ready-to-wear.” fashion house. While the pomp and circumstance of Dior and Chanel’s shows are alexis maBille, one of the Fédération Française de la undoubtedly what keeps Paris’ two main couture houses and their star Couture’s guest members and a former protégé of the house designers, Galliano and Karl Lagerfeld respectively, on top, over recent of Dior, continued the ready-to-wear inspired theme with a years it has been felt by some that such houses seem to have lost sight collection based predominantly on separates. Trademark of the original purpose that the haute couture show serves. Historically bows adorned bolero jackets and neat lace tops, along with layers of tulle the intimate shows that took place in the salons, witnessed by the chosen and silk chiffon. The effect was contemporary, youthful, wearable and few, were to present new designs to clients, allowing such privileged incredibly chic. customers to see each outfit up close before investing grand sums. Even Giorgio Armani Privé displayed plenty of daywear pieces, but Ironically, it was not a budget-conscious newcomer, but the 21-year-old it certainly didn’t lack the sophisticated glamour for which the Italian Maison Martin Margiela and the even older house of Valentino Garavani designer is famed. Ladylike suits with feminine, fitted peplum jackets that opted for a more traditional, downscaled alternatives to the usual evoked a 50s siren style. Paired with classic caramel coats and chunky big-budget presentations. Set within the luxurious settings of the brand’s wood and ceramic details, they exemplified the traditional luxury of01 Dior Fine Jewellery’s Coffret de Paris headquarters in the prestigious Place Vendôme, Valentino’s new haute couture, while responding to the modern-day demands of today’s Victoire earrings, designed by creative directors, Maria Grazia Chiuri and Pier Paolo Piccioli, presented couture wardrobe. Dior’s famed haute joaillerie their third couture collection since their appointment in late 2008. “Daywear is definitely as equally important as evening wear, particularly designer, Victoire de Castellane. Valentino’s was a youthful collection, with 60s-inspired mini dresses within Middle Eastern culture where the emphasis is on always looking02 Plume Necklace, from Chanel’s and girlie flounces that is sure to appeal to the rising number of young your best, irrespective of whether it is day or night,” Kayrouz says. Plumes de Chael from Chanel’s couture clients. The most successful houses have been quick to tap into Kayrouz seems to be on the right track, but will he be able to match the Fine Jewelry collection. this growing market. As Carolina Castro, of Jean Paul Gaultier, notes: success of compatriot Elie Saab? Since making his Paris couture debut seven 071
  • 66. sTyle 02 03 years ago, Saab has risen to become one of biggest names, particularly among Middle Eastern clients – his strong point is that he designs for women. If you’re looking for statement pieces go to Dior, but Saab has mastered the balance of glamour and commerciality admirably, and this season was no exception. His mix of trademark shiny red carpet gowns, sexy goddess dresses and heavily embellished kaftans that were modest for the Middle Eastern woman, were interspersed with nifty daywear ensembles, such as ruffled chiffon and frayed tweed suits. From A-list Oscar actresses to ladies who lunch, the couturier certainly knows his clients. As part of the Fédération Française de la Couture’s efforts to get the rarefied industry back on track, haute joaillerie has been added to the mix. Previously restricted to the catwalk, or to low-key showroom appointments for privileged clients, for the past two seasons the haute joaillerie houses of Place Vendôme and rue de la Paix have opened their doors and collections to the public, offering a rare glimpse at exquisitely crafted bespoke and special edition jewels. Costume jewellery crafted by master paruriers, such as Robert Goossens, Roger Scémama and the house of Gripoix – which continues to produce for Chanel, has always played an integral role throughout the history of haute couture. Today they continue to inspire fine jewellery, as the collections on view attested. Chanel’s Plumes de Chanel collection took inspiration from the house’s iconic founder, while Chaumet celebrated the return of the tiara, as it delved into its collection of more than 2,000 produced by the house since the late 18th century. These extravagant adornments may appeal to young debutantes, but according to Diane-Sophie Lanselle of the 17th 01 Flowing lines from Lebanese century joaillers, Mellerio dits Meller, Saudi clients mainly opt for rings couturier Elie Saab. and watches, due to strict dress codes. 02 Bague Caroline from mellerio Since the birth of ready-to-wear, haute couture’s future has seemed dits meller’s Reines de Coeur precarious, but does this upturn signal a winning formula on the part of collection, inspired by the pieces the Fédération Française de la Couture, or is it just a lucky spell? How can made by the jeweller for Caroline the chosen few continue to produce creations worthy of their five-figure Bonaparte, sister of Napoleon price tags? and Queen of Naples, in the early Haute Couture designer Franck Sorbier believes that it is experience 1800s. that keeps the clients coming back each season. “For the couture client,” 03 Dior Fine Jewellery’s Précieuses he says, “coming to Paris for the sake of discovery is an important part rose earrings in white gold and eLIe SAAb of the quest.” diamonds.072
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  • 69. prOfile science are found in the study of nature for knowledge and enjoyment. Historically, great thinkers wanted to understand the natural world and work with it. Today science generally rejects what is natural. “My vision is perhaps uncommon for our time. I believe an understanding of how nature works is fundamental to problem solving in the built environment,” she says. Allen stresses the importance of having a symbiotic relationship with nature: “I do not want to pave over, eradicate or isolate the natural world. I recognise our inter- dependency with nature and am much more interested in learning from it.” She also references the importance of biomimicry, seeing it as “a tool for innovation that enables a constant study and adaptation of nature for the improvement of modern human life”. “Using its principles, I have collaborated with engineers to develop new products made from light-emitting textiles and organic water resistant fabrics,” she adds. Allen works in an industry that sells visions and ideas about beauty, and she is re-imagining what they should be. Frequently lecturing around the globe, she shares her expertise on sustainable design and production with audiences at Davos, Wearable Futures and Textiles the Next Horizon. “I often refer to the work of George Santayana, who noted that beauty adds to a life in as much as the lack thereof takes away. In a world with many problems, it is easy to forget that the wonder of beauty is a gift with the potential to make life better.” Her perspective is rooted in important philosophical considerations, as well as technological expertise. “In my opinion, there are two general types of beauty: One that is objective and can be explained by math and science, and the other is subjective and unique to the participant. When designing, I reflect upon both objective and subjective beauty. Considerations such as scale, color and shape can pleasure or disturb the eye. I also bring my cultural and personal tastes to the table: I am both an urban dweller and world surfer.”The design fuTurisT According to the design futurist, what lies ahead is ambiguous. “I hope that my generation rises to the unprecedented challenges it has inherited with great success,” she says. Allen understands these trials by making a nod to the past.wriTTen By joanne molina “In one century, nations were designed to waste and destroy a limited supply of natural resources necessary for life. Today,AS THe AMbASSADor To THe WorLD eCoNoMIC foruM’S INDuSTry there is a moral bankruptcy that is threatening our globalAgeNDA CouNCIL oN CoNSuMer ProDuCTS AND A MeMber of A SoCIAL prosperity and well-being.”veNTure NeTWork, DeSIgN fuTurIST NATALIA ALLeN HAS ProveN THAT She sees the description of environmental problems as just being part of a trend as a concern: “Sustainability may befASHIoN DoeSN’T NeeD To be frIvoLouS. viewed as a trend, but it is an environmental and economic imperative.”armed with skills akin to those of a couturier, and a for clothing companies such as Calvin Klein, Quiksilver and Allen also suggests that the answers aren’t easy. “The challengedesign philosophy that reflects an equal commitment to Donna Karan. ahead will be motivating a majority to make the difficultthought and activism, Natalia Allen represents the future of Her innovative approach quickly made her a central figure in decisions required to significantly improve our situation.”the fashion industry. the global conversation on design and sustainability. In 2009, Still, she has high hopes: “I already see dramatic changes The accolades that made her a rising star were immediate. the World Economic Forum honoured Allen with the title 0f taking place. New businesses are leveraging technologiesIn 2004, Allen was a recipient of the highly coveted Parsons Young Global Leader, and in 2010 Fast Company magazine to manufacture more efficiently. Disruptive innovationsDesigner of the Year Award, a title she shares with designers named her one of the 100 Most Creative People in Business, an are changing how products are packaged and distributed,such as Marc Jacobs. Soon after, she founded Design Futurist, accolade she shares with luxury designer Tom Ford. and new business models are inviting employees to becomea boutique design firm that creates technological and But despite its au courant-sounding cache, Allen reminds owners. I believe these bright spots will soon become onesustainable products with textile companies such as DuPont us that design futurism has ancient origins. “The origins of bright light.” 075
  • 70. arT+culTurecaughT oncameraA NeW PHoTogrAPHyCoMPeTITIoN HAS SougHT ToCAPTure THe eSSeNCe of 21ST-CeNTury SAuDI ArAbIA THrougHTHe eyeS of ITS INHAbITANTS.076
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  • 72. arT+culTure01for a counTry so well known in the media, few people, arts and culture. A panel of expert judges were thenpeople have an accurate grasp of what Saudi Arabia really called upon to select the winning photographs.looks like. As an attempt to present a real picture of 21st- With a torrent of entries of an extraordinarily highcentury Saudi Arabia to the wider world, this year SAGIA, in standard, the jury had the difficult task of selecting a winnercollaboration with THINK magazine, launched the country’s for the US$15,000 first prize. After much wrangling, it wasvery first National Photographic Competition. awarded to Abdulmajeed Ali Althiban for his stand-out “We believe that art is a reflection of creativity and image of an ocean of dunes, entitled Sand Waves.innovation; it is most importantly a universal language, The former painter has dedicated himself to “documentingthat bridges between countries, cultures and people,” says and capturing moments for many generations” over aFahd M Hamiddadin, marketing and communication photographic career of just five years to date. Speaking of hismanager at SAGIA, part of the team who established the decision to enter, Althiban says: “It’s a new competition withcompetition. “[We are] proud to communicate Saudi Arabia’s worthy prizes and a multinational jury. I was impressed bydevelopment and transformation that unveils exceptional the panel and it was great to be rated by those creative minds; 02business opportunities. And there is no better means of it’s a wonderful experience for any photographer.”communication than the art captured by the lenses of  It was the scale of his work that impressed the judges. 01 New Makkah City, Saeed Salem (12th place).talented people living in Saudi Arabia.” “I think Sand Waves is the best picture as it captures the 02 Umm al-Qura University, hatem Abdulrazaq haneef Entrants were invited to submit images that showcase wildness of this country in harmony with the common (2nd place).the Kingdom’s development, design, economy, innovation, citizen in a delicate symbiosis,” says judge Daniel Bernardo.078
  • 73. 01 01 58, mohammed Rashed 04 Al-Buainain (10th place). 02 510, Abdullah Altihani (14th place). 03 Prophet’s Mosque, Bayan muhammad al-manea (3rd place). 04 History and Civilization, Dhafer moshabab hasen Alshehri (4th place). 02 03 079
  • 74. 01 01 Poverty, habeeb Jawad Al haddad (9th place). 02 Tales Do Not Forget, Adel Abdarahman hamed Al-Ghamdi (11th place). 03 Running For Life, Abdulmajeed Aljuhani (6th place). 04 Life of Authenticity, Abdullah mutlaq Al Balawi 05 (7th place). 05 Urban Development, Faisal mushref Alshehri (13th place). 06 1231, Saud Basheer Al Jethli (5th place). 07 Spring-Arrival, mohsen mohammed al-Dajani (8th place). 04 02 03 06 07 Second prize was awarded to Hatem Haneef for his graphic representation of Saudi architecture. “This simple, graphic black and white image features Saudi Arabian architecture with a modern twist,” judge Adam Scholes says.“The observer is invited to reflect about the scale of a A relative newcomer to photography, Haneef waslandscape that emanates grace. The monochromatic theme astonished with the results, but says that he finds inspirationreinvents itself every second through infinite variations of in natural and man-made beauty alike. “I like to photographform and tone and pace.” the beauty of nature, the beauty of people, the beauty of what Echoing these sentiments, fellow panel-member Rachel Allah has made for us. Anything that you stand before andHotchkiss adds: “This stunning image captures the vast and can say nothing but ‘wow’,” he says.impressive natural beauty of Saudi Arabia. It is a proud, bold With the bar set so high in its opening year, the next round ofimage that is beautifully composed and well executed.” the annual competition promises to be even more impressive.080
  • 75. arT+culTureThe Panel strategic and creative thinker, she comes with michal j sTeckiw extensive experience that includes corporate Jury panel moderator & consultant, projects communications, international relations and manager partnership development. She currently works for Creative professional and photographer, founder of the International Council of Societies of Industrial MJS Creative, Michal Steckiw has been working Design as the programme director for the World as a project manager and consultant for various Design Capital programme – an initiative which companies in the creative industry and international seeks to showcase cities that have leveraged design bodies in Canada, britain and Poland. design as a tool to improve social, cultural and recently he has been working on Design Weeks economic development. in Qatar, Australia, Cuba, Italy and Spain and the World Design Congress in beijing. MJS Creative is a project management consultancy. Steckiw is affiliated with the International Council of graphic Design Associations, Supremum group multimediaiva BaBaja direction (european Institute of Design, IeD, Torino, agency and Dreamstime stockphotography.Designer and photographer, vice-president, Italy), anthropology/sociology and history of articograda/ international Design Alliance and culture (Pe federal university, brazil). With anIva babaja has worked extensively as a interest in photography, anthropology and culturalphotographer, art director and freelance designer relations, bernardo brings cultural sensitivenessfor major advertising agencies, publishers and and design profession to the THINk Saudi Arabiacultural institutions. She is currently creative director Photography Competition. He is based in Londonat the euro rSCg agency in Zagreb, working with frequent travel to Milan, Sao Paulo and Torino.for many local and international clients. Herwork has been included in many exhibitions and rachel hoTchkisspublications internationally. Creative director, image source She is founder and president of the Prior to joining Image Source, rachel Hotchkiss adam scholesAssociation for Promotion of visual Culture and held senior creative positions at image agencies in Global creative director, JWT  Communication, and has worked extensively on Ireland and New york. She studied art at Central Adam Scholes has done some award-winningthe organisation and execution of ZgrAf and St Martins in London and then graduated from work for Lynx and Murphy’s, launching Levi’smany other international exhibitions and projects. edinburgh College of Art (Heriot-Watt university) “twisted jeans” and projecting a 300 metre-highbabaja is also a member of Croatian Designers with a bA (Hons) in art and design in 1996. She woman onto The Houses of Parliament in London. fahd hamiddadinSociety, Association of Artists of Applied Arts and has also graduated from New york university In 2000, David Droga invited him over to Saatchi General Director of Marketing and CorporateArt Directors Club New york. Since 2007, she with an MA in studio art. Hotchkiss personal and Saatchi. He is now global creative director Communications, sAGiAhas served as a vice-president of Icograda, a photographic work has been exhibited in galleries at JWT, but still enjoys contributing to the creative fahd Hamidaddin is chief of marketing andpartner of the International Design Alliance. in New york, California and London. work. A campaign for golden Skins crisps won corporate communications at SAgIA. regarded a D&AD pencil and Poster of the year at The as an accomplished speaker and presenter, hishrh Princess reem al faisal Campaign Poster Awards. Last year, an anti-drink background includes 10 years in the corporatePhotographer, driving film for MTv, Idiots, received half a million world with a focus on Marketing and businessA member of the Saudi royal family, Princess hits on you Tube and won more awards including Development. under his stewardship, SAgIAreem Al faisal was born in Jeddah and now a Cyber Lion at Cannes. has been awarded over five global and regionallives between Jeddah and Paris. After graduating awards for best strategic campaigns andfrom Manarat High School in Jeddah, she studied advertising websites.Arabic Literature at the king Abdul Aziz university Among his significant previous positions,before leaving to pursue a photography career in Hamidaddin effectively co-founded a databasefrance at the Speos School. business. In 2008, he was elected as a judge at the Maribelle Advertising Award for MeNA.daniel Bernardo Hamidaddin holds a degree in industrialLead designer and creative director, inskin Media management from king fahad university forDaniel bernardo is lead designer and creative Petroleum and Minerals and his internationaldirector of InSkin Media, an innovative media business career developed through programmesagency based in London. He is also co- andrea sPringer in Stanford for executive studies. In his currentfounder and chief designer of Lodren Studio, an Programme director, World Design Capital  role, Hamidaddin is responsible for creating andindependent experimental Design House in brazil. Andrea Springer is an accomplished implementing SAgIA’s communication strategy with bernardo’s cultural and artistic background international management professional with a the goal of enticing knowledge based industries toincludes social and environmental design, art strong track record in the creative industries. A the biggest economy in the gulf. 081
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  • 77. MANS THAM ArCHITeCT fuTure THinKing SOlar Serpent A SWeDISH ArCHITeCT’S AMbITIouS mayor Antonio Villaraigosa wants to dramatically metres for its 24 km length, and could accommodate the increase Los Angeles’ renewable energy sources over the next equivalent of more than 600,000 domestic market panels. PLAN for HArveSTINg SoLAr PoWer decade, and he may have found a way. These could potentially meet the power demands of an entire uSINg roADWAy TuNNeLS CovereD Swedish architect Mans Tham believes he has a successful medium-sized city, with minimal transmission costs. IN PHoTovoLTAIC PANeLS. plan in which solar power could play a key role in meeting These serpents – constructed over roads built on public land, those needs, while generating thousands of new jobs and with existing access points for maintenance – would provide wriTTen By sTeve hill changing the way the city looks. shade, thereby decreasing the use of air conditioning on sunny Tham, who is also an urban strategist, has pointed out that days, and also lessen the UV degradation of paved surfaces. the installation of solar panels on the roofs of private and Another spin-off would be the construction of ‘Power public buildings will provide only a limited amount of power. Place’ charging stations for electric cars under main road So, as well as these relatively small-scale endeavours, why overpasses. not also construct ‘solar serpents’ over the 800km network of And CO2 rich air on the road could be piped into linear- existing roads, thereby turning freeways into power plants? covered algae ponds alongside the freeway. These in turn These tunnels would be covered in solar panels which would create ‘green jobs’, such as the farming, harvesting and could generate colossal amounts of electricity. The Santa processing of biofuels, in areas that, by the nature of their Monica highway, for example, has an average width of 40 proximity to freeways, are traditionally disadvantaged. 083
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  • 79. bOOKs reviews By laura collacoTTWhen it opens in 2013, the Library of Birmingham, designed by avant-garde Dutch architects mecanoo, will be Britain’s biggest ever public library. At a cost ofover US$300 million, the 31,000 square metres glass and steel facility will centre around an airy atrium filled with touch-sensitive computer screens and regularlychanging exhibitions.managemenT sTraTegies for The why of work winning in emerging earTh inc: using naTure’sThe cloud revoluTion By Dave Ulrich and Wendy Ulrich markeTs: a road maP for rules To Build susTainaBleBy Charles Babcock At some stage in your sTraTegy and execuTion ProfiTsHow much do you let career, chances are By Tarun Khanna and By Gregory Unruhgoogle do for you? you have asked yourself Krishna Palepu In contrast to khanna andSearch? Do you hold “Why?” as you’ve If you’ve worked in Palepu’s book, earth Incyour email account struggled to your desk any emerging markets focuses less on ruthlesswith the internet giant? armed with a sugar-laden you will know what capitalism and moreHave you accessed bagel and strong coffee. khanna and Palepu on the softer – but notheir calendar service? Authors Dave and Wendy mean when they talk of less business-minded –Do you use picasa? If ulrich suggest in this book institutional voids – no principle of do, it’s likely to be that managers can tap credit card systems, unruh recognises thein part because you that vein of thought and use creaky banking services, modern day conflictenjoy the convenience of being able to log it to motivate, engage and inspire their lack of intellectual between wanting to progress your businesson to your documents, emails and images employees. property rights, few data goals and acting in an environmentallyregardless of where you are. That’s more or Prominent business writer Stephen research firms. but the pair, who have 15 friendly, socially responsible manner. Heless the concept of “cloud computing” that Covey rightly praises the book’s pertinent years of experience in the field, argue that aims to counter the clash by recommendingbabcock tackles in this book. In the not-too- suggestions for fostering a culture of these same challenges can be exploited for eco-friendly practices that also fosterdistant future, tech-heads believe that home common purpose, pointing out that this is commercial advantage. profitability.computers will no longer hold individual files critical to a successful organisation. Their research pulls together strategies for “business sustainability? embed it andand a surfeit of corruptible software. They In writing the book, the psychologist and how to spot useful development gaps and forget it,” he says. unruh believes thatcall it the biggest game-changer since the management pair interviewed thousands of either fill them or devise cunning ways to sustainability can be “solved” and is acreation of the internet. people across the working hierarchy. take advantage of them. destination, not a journey. 085
  • 80. visiOnary The search for extraterrestrial life has fascinated the public for decades. The subject of countless films and books, it has also baffled the science community and seen billions of dollars spent in the quest to find intelligent life on another planet. Nick Pope, who ran the British Government’s UFO project for the Ministry of Defence (MoD), is regarded as one of the world’s leading experts on UFOs, the unexplained and conspiracy theories. Initially sceptical, his research and investigation into UFOs, as well as his access to classified government files, eventually convinced him the phenomenon was real. “These are the real-life X-Files,” Pope says of the MoD files which were released in 2008. “Most UFO sightings had conventional explanations, but a small percentage remained unexplained. These included cases where UFOs were seen by police officers, chased by pilots and tracked on radar.” the trUth iS OUt there... oNe of THe WorLD’S LeADINg exPerTS oN ufoS, NICK POPE beLIeveS THe key To HuMAN SurvIvAL LIeS IN SPACe. wriTTen By elsa mclaren Applying the knowledge he has acquired in this space to the business community, be believes the search for alien life can be regarded as a low probability/high impact scenario. At the upcoming Global Competitiveness Forum, hosted by the Saudi Arabia General Investment Authority, Pope is speaking about the various ways in which people and organisations search for extraterrestrial life. “The search involves innovative also involves competitiveness, on the basis that not all these programs attract funding and many are, effectively, in competition with each other when it comes to attracting official funding and/or private donation,” he says. During the three years he worked exclusively on the UFO project, Pope investigated between 200 and 300 reported sightings a year, but admits he has never seen a UFO himself. His most high-profile case involved Britain’s most famous UFO sighting – the Rendlesham Forest incident, which took place in December 1980. Pope took on a cold-case review in 1994 and concluded that the original investigation had been fatally flawed. However, he was unable to reach a definitive conclusion on what took place and the case remains unexplained to this day. CourTeSy of NICk PoPe More recently Pope has investigated various conspiracy theories including the events surrounding 9/11, the death of Princess Diana, the moon landings and the assassination of John F Kennedy. But it is the UFO programme that remains his greatest passion.086
  • 81. Powered by performance Life is constant. The energy to power society can be no less. Each and every day Sempra Energy companies provide reliable, sustainable energy to millions of people. We take great pride in owning the largest natural gas utility in the United States and building large scale energy infrastructure. This includes one of the largest thin-film solar sites in North America and joint development of the most expansive natural gas pipeline built in North America in the last 20 years. We operate one of the leading LNG import firms in the United States. Our clean-burning natural gas power plants produce over 2,600 megawatts of electricity. At Sempra, it’s not about who we are. It’s about what we do.