THINK Q2 2011
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THINK Q2 2011 Document Transcript

  • 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 q2
  • 2. I S S U E 1 7 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 E20 thE 2011 globAl 44 thE NEw worlD orDEr 60 AN APPY MEDIUM coMPEtIvENEss forUM China’s exponential growth as an economic Applications development has become big business,This year’s GCF’s had leaders from diverse backgrounds superpower has important lessons for other economies. growing into a multi-billion dollar industry in just a few years.discussing how innovation can add a competitive edge. 52 fooD INsEcUrItY 70 A vIEw froM thE toP 30 MINEr IssUEs – MAJor ProblEM While rising food prices threaten global stability, the A slew of upscale property openings around the After a spate of high-profile incidents, the mining solution may lie in alternate agricultural practices. world are revving up tourism.industry is working hard to clean up its act. 56 sPEllINg sUccEss 74 soN of thE soIl 34 trIcKs of thE trADE Dyslexics’ strong visual and spatial skills The second artist to exhibit under the aegis of Project The theft of millions in carbon credits has made and lateral thinking abilities makes them great 60, Abdullah Hamas’s work is deeply rooted in his heritageregulators sit up and take note. entrepreneurs. and culture.04
  • 3. “rEcogNIsINg thAt Its coMPEtItIvE ADvANtAgE Is Not thrEAtENED If thE worlD UsEs solAr AND wIND ENErgY, thIs rEgIoN shoUlD sEEK to bEcoME thE EPIcENtrE of thE sUstAINAblE ENErgY EcoNoMY of thE worlD. wE NEED to UsE thE rEsoUrcEs UNDErNEAth thE groUND to crEAtE MorE oPPortUNItIEs for thosE PEoPlE thAt ArE oN toP of It.” ForMEr US PrESIdENT BILL CLINToN78 bEYoND thE boArDrooM regulars opinion Trends in fashion, gadgets and lifestyle for spring 11 sPEctrUM 83 fUtUrE thINKINg 26 cEo sPEAKs 51 thINKINg The best and brightest ideas An energy-efficient offshore to thINK forwArD from around the world marine research centre Meet Magatte Philip Stanton on the new Wade-Marchand, a developments shaping the 17 Art+cUltUrE 85 booKs compassionate capitalist. Middle East A look at the flourishing art THINK reviews the best scene in Saudi Arabia reads this quarter 40 thINK 64 whAt Do roUNDtAblE YoU thINK 69 ProfIlE 86 vIsIoNArY How cross-border bourses are Students from around the Calvin Chin is making Eco-activist and Nobel gaining a competitive edge world discuss if sports can tertiary education accessible Laureate Wangari Maathai through large-scale mergers. be an engine for growth 05
  • 4. Sagia EdITorIAL AdvISor Fahd M Hamidaddin ProjECT LEAdEr 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 catherine@motivate.ae dEPUTy EdITor Shalaka Paradkar shalaka@motivate.ae CHIEF SUB EdITor Iain Smith iain@motivate.ae EdITorIAL ASSISTANT Belinda Igaya belinda@motivate.ae GENErAL MANAGEr GroUP SALES Anthony Milne anthony@motivate.ae SENIor AdvErTISEMENT MANAGEr Rowena Miranda rowena@motivate.ae dEPUTy AdvErTISEMENT MANAGEr Omar Al Eit omar@motivate.ae GENErAL MANAGEr – ProdUCTIoN + CIrCULATIoN S. Sasidharan sasidharan@motivate.ae ProdUCTIoN MANAGEr C. Sudhakar sudhakar@motivate.ae dESIGN Design Studio INTErNATIoNAL CorrESPoNdENTS Steve Hill, Joanne Molina, Lisa Vincenti, Dorothy Waldman, Richard Warren, Samia Qaiyum C SAuDI ARABIAn GEnERAL InVESTMEnT AuTHORITy (SAGIA) SAGIA HEADQuARTERS Imam Saud Bin Abdulaziz Road (university Road), PO Box 5927, Riyadh 11432, Kingdom of Saudi Arabia, M T +966 1 203 5555 F +966 1 263 2894 E Info@sagia.gov.sa Y SAGIA InTERnATIOnAL OFFICES CM MIddLE EAST & AFrICA Hatem A Al-Ahmad; E mena@sagia.gov.sa EUroPE Mai Al-Torki; E europe@sagia.gov.sa MY FrANCE Lucile Pons van der Slikke; E france@sagia.gov.sa CY ITALy Mai Al-Torki; E italy@sagia.gov.sa CMY GErMANy dahlia T rahaimy; E germany@sagia.gov.sa K UNITEd KINGdoM Sara Bouzo; E uk@sagia.gov.sa THE AMErICAS Ahmed Islam; E americas@sagia.gov.sa WASHINGToN dC Ahmed Islam; E americas@sagia.gov.sa EAST ASIA Noriko Sozuki; E japan@sagia.gov.sa WEST ASIA Meshari S. Al-Khaled; E singapore@sagia.gov.sa MOTIVATE PuBLISHInG HEAd oFFICE Po Box 2331, dubai, United Arab Emirates T +971 4 282 4060 F +971 4 282 4436 E motivate@motivate.ae ABU dHABI E motivate-adh@motivate.ae LoNdoN E: motivateuk@motivate.ae InTERnATIOnAL MEDIA REPRESEnTATIVES AUSTrALIA okeeffe Media; E okeeffekev@bigpond.com.au CHINA/HoNG KoNG Emphasis Media Limited; E advertising@emphasis.net CyPrUS Epistle Communications & Media; E nasreenk@epistlemedia.com FrANCE/SWITZErLANd Intermedia Europe Ltd; E administration@intermedia.europe.com GErMANy IMv International Media Service GmbH; E j.hoffmann@vhb.de INdIA Media Star; E ravi@mediastar.co.in ITALy IMM Italia; E lucia.colucci@fastwebnet.it jAPAN Skynet Media Inc.; E skynetmedia@y2.dion.ne.jp TUrKEy Media Ltd; E mediamarketingtr@medialtd.com.tr UNITEd KINGdoM Spafax Inflight Media; E nhopkins@spafax.com UNITEd STATES redwood Custom Communications Inc.; E brigitte.baron@redwoodcc.com 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.sagia.gov.sa 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.
  • 5. SHINY DESIGN BY RADOORIGINAL CHRONOGRAPH / WWW.RADO.COM
  • 6. edit Q2 2011tHinKing on a new planeRejuvenation has been uppermost on our minds as Wade’s “compassionate capitalism” rejuvenated an thinking. It implies THINKing about how routinewe come to terms with the turmoil of recent events, impoverished African economy, thereby creating jobs processes can be made more sustainable, more In TransIT II, 2010, ABdULNASSEr GHArEMwhether wreaked by nature or the financial markets. and wealth. Or in China, where the world’s largest efficient and more profitable. In this issue of THINK, our international country has embraced a new way of thinking to THINK of it as a spa treatment for your mind –correspondents set about finding ideas and become the world’s second-largest economy. Carbon rejuvenating the way you think about the same old,innovations that rejuvenate. credits have rejuvenated the thinking about how same old. Be it profit generation, as exemplified by Magatte businesses can cut emissions and still be profitable.Wade, one of the speakers at the fifth annual Global World-renowned lateral thinking expert Edward Catherine BelbinCompetitiveness Forum organised by SAGIA. de Bono says the way forward lies in value-added Group Editor THINK@motivate.ae 09
  • 7. spectrum tHe rigHtplace at tHe rigHt time wrIttEN bY stEvE hIll revolutionary work in the fields of crop growth and medicine, the world’s mostliveable city, plus new hotels and football facilities for Saudi Arabia make the headlines 011
  • 8. spectrumoN trAcKThe designs of four stations conceivedby Foster & Partners for the Haramainhigh-speed railway in Saudi Arabia havebeen revealed. The cities of Makkah, Madinah,jeddah and the developing KingAbdullah Economic City in the west willbe connected by the railway, which willprovide a new link for pilgrims travellingduring the Hajj. Islamic architecturaltraditions have influenced the designof 25 metre-high arches in each of thestations, due to be completed by May2013.toP of thE clAssSeven of the 10 most reputableuniversities in the world – and 45 of theleading 100 – are American, according CoUrTESy oF SINGAPorE ToUrISM BoArdto the results of a global poll publishedby Times Higher Education. Harvardwas at the top of the list followed by theMassachusetts Institute of Technology.Two British universities – Cambridge(third) and oxford (sixth) – also feature inthe top 10. japan is the only other nationto break into the top ten with Tokyo growing WealthUniversity in eighth place. surpass Canada, Britain and Switzerland to rankings were based on a survey of become the sixth richest economy in the worldmore than 13,000 academics from 131 by 2050. The report stated that Singaporecountries. retained its position as the globe’s richest sAUDI ArAbIA will become the richest average of more than $98,000 per annum, economy, in terms of GDP per capita by 2050, economy in the Middle East in terms of GDP according to a forecast by Citibank. at $137,710 followed by Hong Kong ($116,639) per capita by 2050 when citizens will earn an It also predicted that Saudi Arabia will and Taiwan ($114,093). Bloomberg Businessweek’s best undergrad B-school for 2011 for thE second consecutive year, the study abroad at an international institution likesPortINg goAlWorld football powerhouse real Madrid museum’s Boost University of Notre Dame’s Mendoza College of Business won top spot in Bloomberg Cass Business School in London or Bocconi University in Milan.has inked an agreement with the Prince thE forD Foundation has contributed $3 Businessweek’s ranking of the best undergraduate The rest of the places in the top 10 wentSalman Foundation to build a sports million towards the final construction costs of the business programmes in the USA. to (in order of ranking): University ofacademy in Saudi Arabia for 300 new building housing New York’s Museum for Students at Mendoza have the option of Pennsylvania (Wharton), Cornell Universitychildren. The Spanish club currently has African Art, which is due to open later this year. studying abroad in countries like Egypt and (Dyson), Ithaca, N.Y, University of Michigan68 academies in 32 countries. The Ford Foundation Lobby will be an South Africa. Second place went to University (Ross), Ann Arbor, Villanova University, Madrid President Florentino Perez said: integral part of the $90-million museum of Virginia’s McIntire School of Commerce Pennsylvania, University of North Carolina“The academy will serve as a marvellous which has been designed by Robert AM Stern (McIntire Undergraduate Business Profile). (Kenan-Flagler), Chapel Hill, Massachusettsalliance and will allow us to open several Architects. Other donors to the museum After McIntire is Emory’s Goizueta Business Institute of Technology (Sloan), Cambridge,others across the 13 provinces of Saudi include David Rockefeller, John Tishman and School (Goizueta Undergraduate Business and Georgetown University (McDonough),Arabia.” the Walt Disney Company. Profile), a programme that enables students to Washington, D.C.012
  • 9. spectrumsky’sthe limitExPErts IN Qatar are getting creativein preparation for the 2022 World Cup. Dr.Saud Abdul Ghani, head of Mechanical andIndustrial Engineering at Qatar University,has unveiled the design of an artificial helium-filled cloud to float over Doha’s open-airstadiums, shading and cooling the groundsduring matches. E-booKs INNovAtIoN The project will be executed in collaboration rufoof, a bookstore application thatwith Qatar Science and Technology Park. targets the Arab audience with more thanEstimated to cost $500,000, the remote- 4,500 books covering various sectors,controlled cloud will be made of 100 per cent was launched in Saudi Arabia at thelight carbonic materials and fuelled by four Second International Conference onsolar-powered engines, flying at a very high e-Learning staged in riyadh.altitude to block direct and indirect sunrays. The rufoof app download is free Final Frontiers and can be downloaded from itunes. Users can view a wide range of titles in different categories and download DiScovery, naSa’s oldest surviving space shuttle, will be sent to the Smithsonian a sample to have the content available institute for display after being retired from active duty. it racked up nearly 240 even when the device is offline. million kilometres over the course of 39 missions in 27 years, spending 365 days in space. Discovery flew to the international Space Station 13 times and carried a total fAr tEAchINg of 184 astronauts. naSa’s two other shuttles are also set to be retired following the King Abdulaziz University has become end of the space shuttle programme. a member of the SAP University Alliance Programme – a global endeavour that helps faculty members teach students how technology can enable integrated business processes and strategic thinking. Professor osama Bin Sadeq Tayyeb, taking Flight economy-class seats. The remaining jetliners President of King Abdulaziz University, are in the new High Density configuration, said: “We have selected SAP’s business which accommodates 14 business-class and solutions for their functionality to support 327 economy-class seats. teaching, learning and business boEINg AND Saudi Arabian Airlines are range) is scheduled to be completed later this First class seats feature 39.1cm in-seat processes, enabling us to improve teaming up to modernise the carrier’s fleet of year. video monitors with PC power and powered our financial management, maintain 777s to enhance passenger experience. The Eight of the aeroplanes feature Saudi Arabian seat adjustment, while Business Class seats operational excellence, improve cabin modification programme involving the Airlines’ new Business Market configuration, have 30.7cm in-seat video monitors, also with productivity and ensure best-practice.” interiors of 22 Boeing 777-200ERs (extended with 24 first class, 38 business-class and 170 PC power and powered adjustment capability. The university, established in 1967, now boasts 140,000 students. clEAN brEAK Investment in clean energy hit record levels in 2010, climbing 30 per cent to $243 billion according to the latest analysis of global renewable energy markets by Ernst & young. However, there is concern that government spending cuts around the world could restrict continued expansion of the industry. China remains the clear global leader in terms of renewable energy with its wind capacity increasing by 64 per cent in 2010. 013
  • 10. spectrumPowEr lIstLubna olayan, the CEo of riyadh-basedolayan Financing Company, is thesecond most powerful Arab woman inthe world according to CEo Middle Eastmagazine. olayan Financing was launchedby her father in 1947 and has grownto become one of the nation’s mostsuccessful conglomerates. olayan, whoin 2004 spoke at the WEF in davos,Switzerland is also on the board of theBeirut-based Arab Thought Foundation. top of the crops Regions where water quantity and quality are limited, such as Saudi Arabia and the Middle East, could benefit by growing crops engineered for stress tolerance, which would rEsEArchErs at King Abdullah resistance of current crop varieties. Dr Magdy address the problem of the nutritional needs University of Science and Technology Mahfouz and his research team have been of a growing population and pave the way for (KAUST) have developed technology that looking at a new way of genetically engineering surplus crops to be exported to GM-restrictive could improve the quality, yield and disease plants to tolerate aggressive environments. markets like Japan. the place to BelUPUs brEAKthroUgh vANcoUvEr has emerged as the mostThe US Food and drug Administration liveable city in the world for the fifth successivehas approved the first new treatment for year, under an annual index compiled by thelupus in more than 50 years. Economist Intelligence Unit. Benlysta is an injectable drug A combination of stability, healthcare,developed over 15 years by US biotech culture and environment, education and PHoTo CoUrTESy oF ToUrISM vANCoUvErHuman Genome Sciences. infrastructure helped the Canadian west coast It is estimated that this chronic and city emerge with a score of 98 per cent. Twooften disabling autoimmune disease other Canadian cities were in the top 10, withaffects more than 1.5 million Americans, Toronto listed in fourth place and Calgary fifth.90 per cent of whom are women. Melbourne leapfrogged the Austrian capital ofSymptoms include fever, exhaustion, Vienna into second place.fatigue, joint pains and skin rashes, and The leading US city was Pittsburgh, in 29ththere is no known cure for the disease. position, while New York stayed at 56th.014
  • 11. INSPIRING OPPORTUNITIESAt Medsecurities, we are geared towards the wealth preservation of our customers.Our drive to perform stimulates a consistent response to the changing marketenvironment by delivering optimal investment solutions to our clients. With visionand thoroughness, our investment products and services offer innovation andflexibility to meet every expectation.www.medsecurities.com
  • 12. art + culture right to the art of it TErMINAL, THE GroUNdBrEAKING ExHIBITIoN By EdGE oF ArABIA, IS HELPING To PUT SAUdI ArABIAN ArTISTS oN THE MAP ANd SHoWING oFF THE CoUNTry’S FLoUrISHING CULTUrAL CrEdENTIALS. wrIttEN bY sAMIA QAIYUM If thoughts about the Kingdom of Saudi Kingdom, ranging from the mountains international cultural relationships, and addressed concepts of travel, Arabia only evoke images of vast deserts, of Aseer to the backstreets of Jeddah. stimulate interest and investment in bureaucracy, privacy and identity great wealth and limitless reserves of It all started back in 2003, when Saudi art. through the eyes of eight leading Saudi crude oil you should think again. British artist Steven Stapleton embarked Following successful exhibitions contemporary artists. The artworks, all An unexpected side of Saudi Arabia on a bumpy bus ride across Yemen’s in Venice, Riyadh, Berlin and most commissioned for this show, ranged has been revealed through the efforts of border with Saudi Arabia. His journey recently Istanbul, Edge of Arabia kicked from photography and sculpture to Edge of Arabia, a grassroots initiative introduced him to young artists at off 2011 with its first major exhibition performance, video and installation. that allows global audiences to better the Al-Miftaha Arts Village in Abha in the Gulf from March 14-April 15 The issue of travelling for people engage with the country’s relatively and ultimately welcomed an isolated at the Dubai International Finance from the Middle East, especiallyScreened unknown art culture. The non-profit arts community into mainstream Centre. Saudi, has changed drastically post2011 organisation brings together a new conversation. Launched in London in Entitled TERMINAL, the highly 9/11. Having said that, more Saudismaha malluh generation of artists from all over the 2008, Edge of Arabia aims to enhance conceptual and experiential exhibition are now travelling than ever before, 017
  • 13. art + cultureabsorbing new ideas and challengingtheir own ideologies in the process.Both dynamics were reflected in theartworks; and the results were aseducational as they were inspiring, asunpredictable as they were beautiful. a tale of Upon arrival at the exhibition,a “passport” was provided to takeone through the airport setting that 1candidly mirrored the discomforts oftravelling in today’s world. Viewers two citieswere guided from check-in throughto security and immigration, before Taking viewers on a journey of explorationallowing them a moment to pause and illumination between Makkah andand reflect in the first class lounge. venice will be the Saudi pavilion at the 54thContemporary art in Saudi Arabia may venice Biennale.be nascent, but TERMINAL proved Entitled The Black arch, the exhibition willto be surprisingly vibrant, critical and showcase work by Shadia and raja Alem,innovative. two artists who offer two different visions of 3 Curator Bashar Al Shroogi tradition, memory and contemporary issuescommented: “Edge of Arabia has – one as a novelist and the other as a visualcome a long way in terms of the artist. They were chosen after their proposalsdevelopment of the exhibition as were considered to be the most appropriatea whole, as well as the individual for the biennial’s theme, which this year isgrowth of artistic expression of the 2 “Illumination”.artists themselves. TERMINAL pushes The sisters grew up in Makkah andcuratorial boundaries in dialoguing Art Beijing studied classical literature, but it is theirwith audiences via an experiential April 29 – May 2 everyday experiences in the city (thatinstallation. It also marks a maturity China National Agriculture Exhibition annually hosts millions of people from allin the relationship between artists and Centre, Beijing, China over the world) that dominates their work at 4curators working within very tightly the pavilion. Saudi traditions and the Muslimdefined parameters. It is fantastic to see CONTACT Photography Festival Art HK pilgrimage form the exhibition’s backdrop.the artists of Saudi Arabia pioneering May 1- 31 May 26-29 “I grew up aware of the physicalthis curatorial relationship for the first Multiple venues, Toronto, ON Canada Hong Kong Convention and Exhibition presence of black all around – the blacktime in the Gulf.” Centre, Hong Kong silhouettes of Saudi women, the black cloth The Edge of Arabia world tour is Alexander McQueen: Savage Beauty of the Kaaba and the Black Stone,” rajaglobally sponsored by ALJ Community May 4 - July 31 Tim Burton explains.Initiatives and undertaken in Metropolitan Museum of Art, New May 29 – October 31 In turn, the colour becomes the mainpartnership with the Saudi Arabian York, US Los Angeles County Museum of Art, theme of the exhibition itself and also worksGeneral Investment Authority Los Angeles, US to contrast the other part of the work, a(SAGIA). Art Amsterdam mirror image reflecting the present. Black May 11- 15 54th International Art Exhibition – also represents the rich life the sisters leadArt AgENDA Amsterdam RAI, Parkhal (hal 8), Venice Biennale in Makkah; the past full of people, mostlyMiró Amsterdam, Holland June 4 – November 27 pilgrims, stories told by grandmothers andApril 14 – September 11 Multiple venues, Venice, Italy the rich traditions of Islam’s holiest city.Tate Modern, London, England SP-Arte This is Saudi Arabia’s debut at the venice May 12 – 15 Photoespana Biennale. Its mere presence is important on 1. insideRembrandt and the Face of Jesus Pavilhão Ciccillo Matarazzo, São Paulo, June 9 – July 25 many levels, but it is vital for Saudi artists, TERMINALApril 21 – July 18 Brazil Paseo de Castellana, Madrid, Spain who have gained considerable confidence 2. curatorLouvre, Paris, France in the wake of the rise of the contemporary bashar al Art Melbourne Picasso: Masterpieces from the Musée Khaleej art market. ShroogiArt Brussels May 19 – 22 June 11 – October 9 The 54th International art Exhibition will run 3. Brainwash,April 28 – May 1 Royal Exhibition Building, Melbourne, National Picasso, Paris De Young from June 4 to november 27. 2011Brussels Expo, Halls 1 & 3, Brussels, Australia Museum, San Francisco, US Official partners for the saudi arabian hala aliBelgium pavilion include The Ministry of Culture and 4. Concrete arteBA Art Basel Information of the Kingdom of saudi arabia, Block IVArt Chicago May 19 to 23 June 15-19 the saudi arabian General Investment 2010April 29 – May 2 La Rural, Pabellones Azul y Verde, Messe Basel, Halls 1 & 2, Basel, authority (saGIa), saudi aramco, and the abdulnasserThe Merchandise Mart, Chicago, US Buenos Aires, Argentina Switzerland saudi research and Marketing Group. gharem018
  • 14. art + culturegoing once,going twiceEdge of Arabia continues itscommitment to reinvest in the futureof arts and culture in Saudi Arabia byauctioning six works of contemporaryArab, Iranian and Turkish art on April19 in Dubai. Held in conjunction withthe region’s leading art auctioneer,Christie’s Dubai, at the JumeirahEmirates Towers Hotel, the sale is afundraiser to enable the expansion ofEdge of Arabia’s education programmeand art workshops in Saudi schools anduniversities. The auction reflects the surge ofinterest in the region’s arts duringthe past few years. Local art showsare on the rise, more Saudi artists areparticipating in overseas exhibitionsand more educational institutes arenow offering arts degrees. This groupof iconic works feature highlights fromprevious international exhibitions andit is estimated it will raise in the regionof $150,000:1. The highlight of the sale is a woodand copper dome symbolising theDome of the Rock in Jerusalem byAbdulnasser Gharem, a pioneer ofconceptual art in Saudi Arabia andco-founder of Edge of Arabia. EntitledMessage/Messenger and created in2010, it hides beneath its vast diametera small dove, the symbol of peace.Estimated at $70,000-$100,000.2. Edge of Arabia co-founder AhmedMater lives in southern Saudi Arabiaand is much celebrated for his X-RayIllumination series. The work offeredfor sale, Evolution of Man, is a series offive light boxes showing a petrol pumpin x-ray form slowly evolving into thehead and torso of a man pointing thepump nozzle and then a gun to his 4. Manal Al Dowayan, a leadinghead. Estimated at $22,000-$28,000. Saudi lens-based artist known for her depiction of Saudi women’s issues3. Maharem, a play on the Arabic word through art, is offering the Time 5. Maha Malluh is a photographerused to describe tissues and your close Seduces and Time Betrays triptych. This based in Riyadh. Since recently, she has 6. A Lambda print mounted onfamily, is by Ayman Yossri. In this monumental piece is from her recent begun to work with photograms – one aluminium by Sami Al-Turki entitledwork, the Jeddah-based artist has taken series, which depicts an imagined of the oldest forms of photography Marhabba from the series Washaeg. Ita group of tissue boxes, decorated them conversation between urban inhabitants using photographic paper exposed depicts two figures in the desert beforewith posters advertising classic Arabic and their cityscape, confronting the to light. Unveiled is a large lightbox an expansive sky pierced with sunlight,films from the 1940s or 1950s and complex issues of uncertainty, conflict containing a group of kitchen utensils and became iconic as the marketingstacked them beside and on top of one and constant flux in the relationship. animated with smiling faces. Estimated image for Edge of Arabia Dubai.another. Estimated at $20,000-$25,000. Estimated at $15,000-$20,000. at $5,000-$7,000. Estimated at $5,000-$7,000. 019
  • 15. thE 201 globAl 1coMPEtItIvENEss forUMSoME oF THE WorLd’S MoST PoWErFUL BUSINESS, PoLITICAL ANd ENvIroNMENTALLEAdErS GATHErEd For THE FIFTH TIME IN SAUdI ArABIA To dISCUSS HoW CoUNTrIESANd LEAdING BUSINESSES CAN FoSTEr INNovATIoN. wrIttEN bY JoANNE MolINA020
  • 16. World eventThe Saudi Arabian GeneralInvestment Authority(SAGIA) was pleased at theenormous success of theworld’s premier conferenceabout competitiveness:the Fifth Annual GlobalCompetitiveness Forum(GCF), which was heldon January 22-25 inRiyadh, Saudi Arabia.cElEbrAtINg its fifth anniversary, the conference, this year’s themewas Innovation as a Means to Competitiveness, built upon last year’sconference discussion that focused on balancing economic growth andsustainability through competitiveness. The GCF theme was particularly relevant as Saudi Arabia continuesits unprecedented economic growth and continues to build upon thelast five years of social and political reforms. For the past four years,participants at the GCF discussed innovation as a means of developingcompetitiveness in order to build sustainability, drive economic growthand promote responsible development. This year’s GCF was the firstpaperless forum of its kind as all participants had iPads and paper wasbanned. His Excellency Amr Al-Dabbagh, Governor and Chairman of theBoard, Saudi Arabian General Investment Authority, explained theimportance of the conference for Saudi Arabia and the world. “While theGCF is global in scope, it has special relevance for us here in Saudi Arabia.In defining the country’s development strategy, the Supreme EconomicCouncil through the Saudi Arabian General Investment Authority,has committed to achieving world-class economic competitivenessas the platform for enhanced prosperity.” But he also emphasises thatthis prosperity should not come at any price. “To deliver sustainableprosperity, capitalism must be attentive to social, environmental, politicaland financial systems, with which it is intertwined. This imperative isreinforced daily by the pressure placed on the foundations of the world’seconomic well-being. Achieving sustainable competitiveness has neverbeen a more pressing challenge, neither for Saudi Arabia nor for otherforward-looking nations.” According to Citibank’s forecast, Saudi Arabia is set to be the MiddleEast’s richest economy in terms of GDP per capita by 2050. Citibankalso reported that Saudis will have an average wealth of $98,311 by 2050,nearly four times the current rate of $24,200 gross domestic product(GDP) per capita, according to the CIA World Factbook. Saudi Arabiatops the rankings for the Middle East and will be sixth overall on theglobal list by 2050, the forecast showed. In total, the Gulf is estimated tocontribute four per cent of global GDP by 2030 and by five percent by 2050. The GCF launched in 2006 in Riyadh under the patronage of HM King 021
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  • 18. World event 7 8 9 101. Sagia governor amr al Dabbagh Abdullah bin Abdulaziz, the Custodian of the Two Holy Mosques. It Walt Disney International, agreed saying: “The ecosystem should lay theand former uS president bill clinton started as a gathering of Information, Communication and Technology groundwork for innovation, then management should allow innovatorsat the SFg gala dinner 2. paul (ICT) experts, including Bill Gates, as a vehicle to discuss how these free reign to come up with ideas and be supportive even if they fail.”hawken, environmental activist and technologies enable and encourage competitiveness. Since the success of Former US President Bill Clinton gave one of the most talked-aboutauthor 3. Former uK prime minister its launch, the GCF has been the only event of its kind, functioning as an keynote speeches on the third day of the conference. “In an interdependenttony blair 4. adel m. Fakeih, mayor annual meeting of global business leaders, international political leaders world, innovation has to be built into the model and structure of operations,”of Jeddah 5. chrystia Freeland, and selected intellectuals and journalists to create a dialogue with respect he said. Clinton spoke about innovation and competitiveness around theglobal editor-at-large, reuters to the positive impact organisational and national competitiveness can globe and how it all relates to Saudi Arabia. Often the best innovation isn’t6. ulf henriksson, chief executive and have on local, regional and global economic and social development. dramatic but rather just “doing what we already do better”, he continued.director, apv uK limited Its vision and mission continue to be the same: an annual programme “The iPad is an incredible innovation, but only 15 per cent of the world’s7. his excellency Dr. muhammad of activities attended by global business leaders, international political population has the capabilities to use it.”Sulaiman al-Jasser, governor, Saudi leaders and selected intellectuals who share a common interest in At this year’s GCF, the spotlight was turned on five groundbreakingarabian monetary agency (Sama) competitiveness. The forum is dedicated to fostering awareness initiatives. The first initiative, The Saudi Fast Growth Awards (SFG),8. helmut Schuehsler, managing and enthusiasm around the issue of competitiveness, evaluating the an annual ranking of the fastest-growing companies in Saudi Arabia,partner, tvm capital 9. James S. applicability of competitiveness theory and practice as a tool for launched by SAGIA, awards and highlights Saudi companies that areturley, chairman and ceo, ernst & generating real solutions to contemporary global challenges. creating jobs and spurring innovation. The top three winners for 2010 wereyoung 10. andy bird, chairman, the First Gulf Company, Dnata Travel and Waseel ASP Ltd, respectively.Walt Disney international thIs YEAr’s first conference panel, Innovation as a Means of The second initiative, The Saudi Responsible Competitiveness Index Competitiveness, started by delving directly into the theme of innovation, (RCI) analyses how Saudi companies are building competitive advantage asserting that the future will reward those countries whose competitiveness by managing their social and environmental impacts. Led by the King drives them to create and think ahead. “Innovation is the best way Khalid Foundation and SAGIA, it is supported by the international think- to compete for companies as well as countries,” said panelist David tank AccountAbility. This year’s winners of the King Khalid Responsible Drummond, Google’s senior vice-president of corporate development. Competitiveness Award were Saudi Basic Industrial Company, SABIC During the course of the discussion, four key factors that foster (first), National Commercial Bank (second), International Medical innovation were established: an ecosystem that fosters change, a culture Centre and Dr Fakeeh Hospital (sharing third place). of tolerance towards failure, a supportive regulatory environment and The third initiative, The Most Competitive Youth (MCY), is a strategic availability of risk capital. “These add up to creating the environment that initiative to engage Saudi youth in applying 21st-century skillsets induces innovation,” said Jim Albaugh, president and CEO of Boeing. to improving their communities; inspiring creativity, promoting John Rose, CEO of Rolls Royce, raised in important point, reminding innovation, and bringing Saudi Arabia’s economy to the forefront of the panel that “not all innovation is good innovation” and that often competitiveness. Rayan Al-Dafas, a 15-year-old Saudi student, bagged innovations aren’t commercially viable. Albaugh supported Rose’s top honours this year. The fourth initiative, The Top 100 FDI initiative, observation, citing his experience with engineers at Boeing. He discussed was introduced by SAGIA to recognise top FDI companies, and highlight how each innovation an engineer makes should be respected so as not to their contribution to the Kingdom, the largest recipient of FDI in the discourage the engineer to innovate in the future. Andy Bird, chairman of region and the eighth largest in the world. The fifth initiative, Saudi 023
  • 19. World event 1 2 3Oxford Leadership, was launched in 2009 as a joint initiative by SAGIA, countries is nearing its level in the OECD industrialised countries and 1. abe m. Sher, founder, chairmanNorth Development Program, and Oxford University’s Saïd Business will surpass it by 2013.” and ceo of aqua Sciences, inc.School. The Saudi Oxford Leaders Event at GCF 2011 highlighted the The future of innovation in the energy field was also a hot topic at the 2. Steven mills, senior vice president,objectives and strategy behind the creation of SOAMLP, the connection conference. The panel The Shift in the Energy Landscape addressed how ibm 3. canadian senator, marie-between leadership development and competitiveness, and showcased diverse technologies to develop clean energy are on the rise. Joe Stanislaw paule poulinthe alumni’s community-based projects for improving Saudi society. of the JA Stanislaw Group discussed how the future is “clean” and Sandra In celebration of Saudi Arabia’s improving to 11th place in the Ease of Wu of Koksai Kogyo Group urged Saudi Arabia to utilise advancedDoing Business Ranking and eighth in global inflows of FDI, the GCF Geographic Information Systems (GIS) in building solar power plants.panel on 10x10: A Case Study highlighted how accomplishments over the She said that satellite technologies will be crucial for selecting land andpast five years have laid an excellent foundation for Saudi Arabia’s future positioning solar panels, and that, using GIS, Saudi Arabia would be ableand it’s global presence. to maximise the productivity of its plants. President Bill Clinton said, “The 10x10 programme represents Saudi Art was also the topic of spirited discussions at the GCF. PaolaArabia’s commitment to thinking in terms of the future — not just Antonelli, senior curator of the Department of Architecture and Designthinking of the present.” at the Museum of Modern Art; Jake Eberts, the award-winning movie Amr Al-Dabbagh praised the success of 10x10, but he also said “this producer of A Journey to Mecca; Jitesh Gadhia, managing director ofis not the end of our competitiveness journey; the future will be even The Blackstone Group; Mona Khazindar, Curator of the Museum of themore interesting. The Economic Cities will become new benchmarks Institut du Monde Arabe; and Venetia Porter, Curator of Islamic andrecognising Saudi Arabia’s second phase competitiveness.” Contemporary Middle East at The British Museum, each presented their In his keynote speech, His Excellency Adel M Fakeih, the current Minister views during the panel, Creative Capital.of Labour, addressed labour force reform in Saudi Arabia. According to HE Panelists discussed how art plays an important role in creating aFakeih, five million jobs need to be created in 20 years to keep up pace with competitive atmosphere. Khazindar showed slides of public art projectswork force growth. He reassured the audience that the Saudi Government and Porter gave an overview of important contemporary Saudi artists,is working to fix this problem and he made three main recommendations: including Manal Al-Dowayan, who is supported by the Edge of Arabia1) focus on job intervention policies that are “Saudisable” (industries where platform for promoting Saudi art. Eberts reflected on how businessSaudis want to work), 2) create economic activities and opportunities that philanthropy can turn creative ideas into powerful cultural forces,deliver high salary jobs and 3) increase nationals’ participation in the private emphasising how “we are able to develop a sense of identity becausesector by creating an equal playing field and restoring fair competition of social interactions”. Gadhia explained how innovation and artisticbetween nationals and expats. Other items that HE Fakeih put on the reform creativity are inseparable and offered suggestions for how the arts canagenda were increasing the cost of foreign workers, giving youth incentives create growth in private-sector competitiveness.to work in the private sector, making the labor market more transparent and Other speakers included Janine Benyus, Rahul Singh, Mohammedcreating a social welfare system. Rezwan, Jack Simm. Klaus Kleinfeld, Marco Tronchett-Provera. Jean Pascale-Tricoire, Ulf Henriksson, James Wolfensohn, Professor MichaelIN hIs keynote speech on the global energy outlook 2011, His Porter, Linda Rottenberg, Paul Hawken, Jean Chrétien, Andy Meyers, AmyExcellency Ali bin Ibrahim Al Naimi, Saudi Minister of Petroleum and Zhou, James Carpenter, Atul Punj and John C. Warner, among others.Minerals said, “The world has clearly passed the global economic and “The insights that emerged during the conference were a testament tofinancial crisis and deep recession it experienced in 2008-2009 and the growth and global scale of the GCF 2011,” says HE Amr Dabbagh.entered as of last year a stage of growth which is expected to continue this Next year’s theme will build upon these insights. “The theme will beyear.” He added: “This year might mark an important turning point in “Competitive Entrepreneurship.” This is not the end of our competitivenessthis direction, as oil demand in the emerging economies and developing journey; the future will be even more interesting.”024
  • 20. industry026
  • 21. ceo speaKs to tHinKcaptital sm W tH a consc ence MAGATTE WAdE-MArCHANd EArNS A LIvING By wrIttEN bY lIsA vINcENtI INTrodUCING AMErICANS To SoME oF HEr HoMELANd’S NATIvE SECrETS, yET SHE doES So IN A MANNEr ILLUSTrATIvE oF A NEW BrEEd oF CAPITALISTS WHo BELIEvE THEIr joBS Go WELL BEyoNd jUST TUrNING A ProFIT. MAgAttE Wade-Marchand, raised in Senegal, educated in Germany and France, and now living in the United States, is getting ready to launch her latest venture, a high-end cosmetics label At just 35, Wade-Marchand already has one flourishing company that takes traditional beauty recipes from her homeland, and brings under her belt. Founded in 2004, Adina World Beverages introduced an them into 21st century. Wade-Marchand has high-expectations for original Senegalese drink to US consumers, who have become increasing Tiossano Tribe, as her collection is dubbed. thirsty for esoteric, organic beverages. The market penetration of Adina Wade-Marchand is part of a growing number of entrepreneurs who in less than 10 years is impressive: the drink is now distributed through believe that profits do not have to be made at the expense of others most Whole Food supermarkets (the owner of which counts himself and the environment, they understand that every participant, from among the ranks of conscientious capitalists and was among the first CEO to local workers, must reap the rewards of success. Consider to adopt this new business model) and was recently introduced to it a corporate culture with soul; conscientious capitalism is what mainstream grocery chains such as Safeway, Publix and Raley’s. these entrepreneurs, including Wade, ascribe to and they hope it will Yet while establishing Adina in the marketplace, Wade-Marchand become the next major chapter in economics. lost touch with one of her original goals of the company and she feels So when it comes to establishing her latest proposal, Wade-Marchand the founding of Tiossano is her way back. “Adina was founded after is banking on Tiossano to not only help Senegalese workers earn a visiting Senegal and discovering that the traditional hibiscus beverage comfortable living but also to provide them with the tools they need to that I had been raised with was being replaced by Coke and Fanta,” turn Senegal into a haven of entrepreneurship. “Conscious capitalism notes Wade-Marchand, who is now based in the US but makes several is capitalism that’s conscious of its deeper purpose,” she says. “My trips a year back to her homeland, where her family still lives. purpose has always been to transform Africa by providing jobs, by “I knew the only chance that our beverage had of being respected providing innovative education and, most importantly, by providing by Senegalese people would be if it became popular in the West. a new identity for what it means to be African that will change both When I created Adina, hibiscus growing was in steep decline, and by Africans and non-African perceptions.” partnering with (Agribusiness in Sustainable Natural African Plant 027
  • 22. ceo speaKsto tHinK KEvIN MCNULTy 1 2Products) and the first lady of Senegal we were able to create a thriving What’s more the country exports slightly more than $2.1 billion (chieflyorganic hibiscus industry that now employs thousands of women. Since in fish, groundnuts, petroleum products, phosphates and cotton) while 3then many organisations have been inspired by our visionary approach.” importing more than double that amount in food and beverages, capital As Adina, which received a $30 million venture capital infusion, grew goods and fuels. The nation has been struggling for decades to create aninto a mainstream product, it began drifting away from its initial focus economy that can boost employment rates and income levels, yet change 1. magatte Wade with hibiscuson indigenous African recipes, prompting Wade-Marchand to leave the has come slow. women co-op growers in Senegal.company, although she remains the largest individual shareholder. Often relying on hand-outs of foreign aid for survival, Senegal – and 2. the new product tiossano from “The great irony is that while I have probably founded the most most other African nations, Wade-Marchand contends – would do far Wade.successful US consumer brand ever created by an African, the African better by fostering a spirit of entrepreneurship and enterprise instead. 3. a renewable energy power stationcomponent of the brand has steadily shrunk as the brand became more Furthermore, many non-government initiatives that attempt to create jobs in a remote village.successful,” she says. “Tiossano has been designed to ensure that will not in Senegal and Africa fail due to a lack of understanding by implementershappen again.” that to get a crop like hibiscus grown is just one small factor in the success of an agricultural project. It proves far more challenging to get crops tosENEgAl, wIth Its population of more than 12 million, sits market rather than having them rot in the field without a strong, saleableon the western most tip of Africa. One of the continent’s most stable concept, such as Adina, which serves as the buyer.democracies, Senegal, with its low, rolling plains rising to foothills in “After 40 years of socialism, there was much optimism in 2000 whenthe southeast, is nonetheless plagued by some of the same problems as President Wade was elected,” Wade-Marchand recalls. “Although he madeother African nations. Nearly half of the population is unemployed and some reforms which made it easier to start businesses in Senegal, in moreof those that do work, 77 per cent rely on agriculture to eke out a living, recent years reforms have gotten bogged down in politics and corruption.according to the Central Intelligence Agency’s World Factbook. Senegal is a beautiful country with hard-working, respectful, decent people.028
  • 23. 1 2 3 4 “We have never had a coup nor civil war, our AIDS rate is similar California to adapt those beauty potions to American product1. the Senegal countryside. to that of the US, we have none of the usual problems associated with standards. In fact, in the initial viability phase, Tiossano will be2. a salesgirl in Dakar. Africa. If we can create a successful manufacturing sector we can produced, marketed and sold exclusively in the US.3. a hotel in the Saly portudal area become the first African success story. In addition to the jobs created “Once we have adequate sales volume to justify moving productionon the petite cote. directly by my company, I wanted to serve as a model to the Senegalese to Senegal we will do so,” Wade-Marchand says, noting that she expects4. a coastal town in Senegal. of how it is possible to create a world-class company. it will take about 18 months to build up enough capital to set up a “I know many Indian entrepreneurs who said that when [IT and production facility in Senegal. “Thus our first impact [on Senegal] will consulting company] Infosys became a global brand it inspired them be to create jobs. In addition, we are devoting 10 per cent of product to create globally competitive companies as well. Today we all consider revenues to the creation of innovative education in Senegal, which will Indians as entrepreneurial, but that was not the case 30 years ago… I empower Senegalese young people to become creators, innovators and want to do the same for Senegal.” entrepreneurs. “In order for Africans to obtain the respect and dignity they deserve, wIth thE fIrst Tiossano beauty products coming to market this it is important that Africans not only escape poverty, but that they also spring, Wade-Marchand has big plans for her current project. Based become competitive globally. By means of the example of my company, just outside of New York, she apprenticed with a tradipractitioner in by the experience of working in my company and by means of the Senegal to learn all she could about traditional recipes and techniques. schools we will create, we will provide a new generation of Senegalese She then collaborated with a professional green chemistry lab in with the skills and inspiration to become globally competitive.” 029
  • 24. industry MINEr IssUEs –MAJor ProblEM WIdESPrEAd ABUSES IN THE PAST HAvE EArNEd THE MINING INdUSTry A dIrTy rEPUTATIoN. THE qUESTIoN NoW IS: CAN MINING CLEAN UP ITS ACT? wrIttEN bY DorothY wAlDMAN 1030
  • 25. mining The world watched anxiously as 33 trapped Chilean miners were dramatically rescued after an accident last October. Unfortunately, this was but one of a deluge of mining accidents that occurred in 2010, and tragedies continue to occur. As of early March this year there have been 11 additional fatal mining accidents in Chile alone. CoPyrIGHT © MArLI MILLEr, UNIvErSITy oF orEGoN 2 3 4 MAJor AccIDENts in coal mining have made the front pages of Sakin Tuncer. Of particular concern is the damage to the olive trees in the world’s newspapers because of the tragic numbers involved and the the area. heroic rescue attempts. The reality is that the mining of coal and other “Olive trees have been [benefiting] humankind for the past 6,000 years, minerals frequently takes its toll, not just in terms of lives lost, but also whereas the average activity of a mine is around 10 years,” says Mustafa on the environment. Tan, head of Turkey’s National Olive and Olive Oil Council. “And at the Minerals harvested through mining are vital for almost all human end of that 10 years, the mines leave behind environmental damage that activities today from agriculture to manufacturing to the technology takes hundreds of years to heal.” required for alternate energy sources, and the demand for them continues to escalate. In an effort to extract these valuable natural resources from the AlthoUgh mining has been conducted for centuries, prior to earth, the mining industry has gained a reputation for the exploitation of recent years there has been little worry about the safety of people or both its workers and the environment. So is safe, clean mining possible? the environment. Today, these are growing concerns. International With the price of gold skyrocketing, its mining is taking on new organisations such as the International Council on Mining and Metals significance today. Unlike the popular Wild West image of a lone 49er (ICMM), an organisation comprised of 18 mining and metals companies panning for chunks of gold in a California stream, most of the supply that plus 30 national and regional mining associations and global commodity is excavated today is in the form of tiny particles mixed with mud and dirt. associations, have been formed by those involved in this sector to The traditional process uses a cyanide solution to extract the particles. voluntarily address core sustainability issues including the health and Contamination affecting the surrounding ecosystems occurs if water safety of workers and the environment. The list of yearly conferences utilised in this process leaks into the environment, causing substantial devoted to these issues is continuously growing as a testament to the damage to the local ecosystems, often destroying the livelihood of the current anxiety. inhabitants while exposing them to a variety of serious health conditions. The ICMM in a recent survey found that environmental concerns1. anglogold mining operations in In 2000, a pipe carrying cyanide solution burst in Romania, sending (40 per cent) followed by social concerns (28 per cent) were the topSouth africa the rancid chemicals down to the rivers and villages below the mining sustainable development issues for the mining and metals industry.2. open pit mine with half full of site. Eleven years later, people living in the area continue to suffer, with In the late 1930s, deaths from all mining activity in the US averagedwater in north america drinking water cut off and nearly all the fish in the area killed.  over 1,500 annually, considerably more than the 71 fatalities in 2010.3. anglogold’s underground mining Residents in western Turkey recently protested about a gold mining Improved safety policies and enforcement of government regulationsoperations in brazil project in their area. “This process brings an end to vegetable and fruit have helped reduce these numbers. If regulations are strengthened4. a view of the plant at crixas mine farming and stock-breeding. The cyanide mixes with the atmosphere and throughout the world, and effectively and consistently enforced, moreSerra grande in brazil comes back to the soil in the rain,” says Bayramiç District Mayor İsmail fatalities can be prevented and the affects on the environment should be 031
  • 26. miningless destructive moving forward. Many mining companies, especially thelarger, more heavily regulated ones, have developed official sustainabilitystatements voicing their concern for safety and the environment, a smallbut vital first step. According to Martin Jones, director of the Banro Foundation, whichis involved in the Democratic Republic of the Congo: “With reputablemining companies that (destruction) almost never happens. Any minebeing built today has to be built to global standards. In the Congo, theMining Code of 2003 is quite advanced. It is based on the best miningpractices in Africa and was put together with help from the World Bank.If you do [build according to World Standards] there shouldn’t be anyenvironmental issues.” The increase in awareness in the past few years has also inspiredresponsible companies to take their own initiative to prevent thesedisasters. Among advances being made are those by European Nichol,which has developed heap leach technology that, in addition to beingeffective and cost-effective in extracting the mineral that is used inmaking stainless steel, is a method that considerably reduces carbondioxide emissions when compared with conventional processes. Thesulphuric acid used in the process is recycled to generate steam, which inturn generates more electricity than the project needs. The excess is thensupplied to the local energy grid, thus reducing the need for fossil fuels. Another reportedly more environmentally friendly technology forextracting minerals is the bioleaching utilised by BacTech Environmental,which uses naturally occurring bacteria rather than chemicals such ascyanide and is purported to be a safer method of neutralising arsenic andother toxins in mine site debris or “tailings”.wAtEr MANAgEMENt is another vital aspect of the mining 1process and involves recycling, conservation, quality-testing and stormwater management. Xstrata, which has 40 operations worldwide, with recycled. For one operation in Chile, treated wastewater accounts for 70 1. a view of the plant at crixas mineclose to half in arid regions, is working to lessen their demands on water per cent of the overall water consumed. Serra grande in brazil sources through conservation Additional pressure to clean up the environment is coming from other 2. martin Jones, chairman of the and the increased use sectors of the economy as well. Zale Corporation and 53 other jewellery banro Foundation of recycled water. companies with annual sales of more than $5.75 billion are boycotting Approximately 60 gold from the open-pit Pebble Mine in southwest Alaska, United States.  per cent of the water Open pit mining is a surface mining practice that leaves a huge pit in the used in 2009, the last earth. “Such a large number of jewellers have never taken a stance on a year statistics are particular place before,” Earthworks spokeswoman Bonnie Gestring says. available for, was Some lenders are also taking a stand on mining practices. The loan getting the environment and to promote workplace “We are dealing with a population safety. that really wants to see progress. They Martin jones, chairman of the Banro are perfectly aware the Congo has been it right Foundation, spoke to thINK. “When we first went to the Congo in the autumn of 2004, the first thing left behind. They know they have limited opportunities and that the rest of the world has a higher standard of living, and more bANro is a Canada-based gold we did was to meet with the tribal and opportunities in life. The know they have a exploration and development company that administrative leadership in the regions limited skills base.” is constructing a “phase one” gold mine where we were going to be active, as well in the democratic republic of the Congo, as the government and church officials, The local leaders identified three areas the first of a number of projects there. The and explained to them what our goals they specifically wanted the Foundation to Banro Foundation was created to promote were going to be. We asked them how we address: the social and economic development of could best work with them to make the most 1. Education the local communities, to create jobs and effective contributions to these communities,” 2. Healthcare training for Congolese citizens, to protect he said. 3. Social infrastructure 2032
  • 27. PHoTo By SCoTT CLoSE, EUrASIA MINErALS 4 member, says in its Sustainability Report: “We must equally demonstrate to communities and host nations that our presence delivers sustainable benefits that extend beyond simply providing jobs or paying taxes.” To 1 that end, the company dedicates millions of dollars for projects to help the local communities that include infrastructure development, health services, education, environment and cultural involvement. Governments around the world are also evaluating common practices and setting new standards. Expected among the new provisions being 3 developed by the Ministry of Environmental Protection in China are greatly reduced allowable levels of contaminants in water in the application process for mining activities instituted by the US financial production of rare earth minerals, which are used in a number of high- institution Wells Fargo requires input from Environmental Affairs and a tech processes including wind turbines and hybrid cars. Cracking down review of the applicant’s track record on these issues. on artisanal mining operations, which are often illegal and are among 2 Localities are becoming more involved in the developmental phase the worst offenders not just in China but globally, is also high on their of an operation. Especially in the poor and underdeveloped areas of priority list.1. the ore sample yard in a emerging economies where many of the new projects are located, the The UN, World Bank and industry organisations are working to settanzanian mine 2. transport by train local communities are expecting such basic services as healthcare and standards for safe, ecological mining practices that will hopefully paveat main level, Kiruna iron ore mine, clean water from the mining companies. Understanding these concerns, the way for higher industry standards. These examples indicate thatSweden 3. conveying belt with along with the local political situation, will be critical to the success of many efforts are being made to combat the current perception of miningpellets, geita mine, tanzania projects in so-called frontier markets, according to Pricewaterhouse as a dirty industry. At the very least, current global best practices must be4. geologists prospecting for gold Canada. “It is a complex and sensitive area, where mining companies followed at every site and innovative technological advancements must have not always gotten it right,” says Aidan Davy of the ICMM. continue to insure that mining becomes safer and cleaner than it is now. There is still room for improvement to hElP companies get it right, the ICMM has published guidelines Mining involves inherent dangers, but the goal is to make all types of for dealing with local peoples. Mick Davis, CEO of Xstrata, an ICMM mining as safe and environmentally responsible as possible. Committing to one major capital the number it was built for. That shows how about half were integrated into the schoolinvestment project a year in each community, eager people are to get an education.” system while the older ones elected to gobut admitting that some very expensive The communities also “stressed the into skills training programmes where theyprojects may take longer, each community importance of job creation and on-the-job learned such things as motor mechanics,decides what they want built. Among the training and that pretty much coincided with sewing, masonry and carpentry.foundation’s projects have been the building what we wanted to do as well”, jones said. This and some of the other programmesof four schools that now serve 1,500 Among the more than 3,000 Congolese were accomplished by the foundationstudents, a potable water delivery system directly or indirectly employed by Banro are working in tandem with local NGosserving 18,000 people in four villages, thought to himself: “How will they ever find 40 recent geology graduates from a local who occasionally request help for one-the construction or re-construction of more 300 children from this community to fill this college, many of whom have advanced to off projects. one of these involvedthan 100km of roads and bridges and the school? We have really overbuilt this thing.” senior positions in just a few years. “People feeding a baby chimp, something theconstruction of a hospital But on the following Monday morning, want to learn English so we have put English employees were very proud of doing, one school designed for 300 students 700 students showed up and some had programmes in place,” he added. especially since most of the wildlife in thewas officially dedicated on Saturday, walked as far as 50km. “That number has Another concern were the artisanal miners area was killed off during the Congoleseoctober 3, 2009. At the ceremony jones settled down to 600, but that is still twice in the area. of the 200 children involved, Civil War. 033
  • 28. trIcKs ofthE trADEwrIttEN bY JoANNE MolINACArBoN IS SET To BECoME THE WorLd’S BIGGEST CoMModITy, BUTWITH ITS GroWTH IN PoPULArITy CoME INCrEASEd CASES oF FrAUd oNTHEFINANCIAL SErvICES MArKET. So HoW IS THE EMErGENCE oF CArBoNCrEdITS TrAINING BEING PoLICEd ANd WHAT CAN WE ExPECT IN THE FUTUrE?034
  • 29. energy london office of thomson reutersrEcENt instances of multi-million-dollar carbon credit fraud and cyber- EEX – a 36-cent discount to the Dec-11 EUA price at the time. The European commission, as allow market mechanisms to drive industrial and commercial processes in the directiontheft in Europe have drawn attention to the part of its 2050 Roadmap, proposed that the EU of low emission and less carbon-intensiveexpanding global carbon credits market. should consider withholding some EUAs from approaches. Carbon is poised to be the world’s biggest phase three auctions to bolster carbon prices. Carbon credits create a market for reducingcommodity and the managing of carbon credit Carbon’s current stability in the energy greenhouses emissions by giving a monetaryis one of the fastest growing financial services market is a good sign, especially after recent value to the cost of polluting the air: emissionsmarkets, estimated to be worth in excess of concerns about the security of carbon credits. become an internal cost of doing business and$41bn. The ETS (European Trading Scheme) This January, after years of VAT-fraud and illegal are visible on the balance sheet along side rawpredicts that the number of allowances will be activity in the carbon market, the European materials and other liabilities and assets. Sincereduced over time so that total emissions fall. Commission suspended all transactions, except GHG mitigation projects generate credits,In 2020, emissions will be 21 per cent lower for the allocation and surrender of allowances, this approach can be used to finance carbonthan in 2005. in EU ETS national registries. The most recent reduction schemes between trading partners As Michael Szabo’s report for the UK-based incident that challenged the integrity and safety and around the world.Thomson Reuters Point Carbon has recently of the system occurred when 475,000 EUAs Launched in 2005, the Kyoto carbon creditsurmised, carbon is presently holding up were stolen from the Czech Republic’s carbon mechanism for CO2 trading has been adopteddespite tumbling energy prices. According to registry and illegally sold to the Estonian by all the countries within the EU under itsthe report, front-year EUAs finished near their registry. ETS. About two billion EUAs are issued eachsession high, climbing 5 cents to €15.91 by 1700 However, despite reasonable assurances that year to included companies, which establishGMT after trading as low as €15.71 earlier in the minimum security requirements are in a cap on total aggregate emissions from thesethe day. Traders noted that the gains in EUA place, there are many questions surrounding companies.   prices were made in light of a significantly the future of the carbon trading market. Many According to the ETS, the system works onweaker energy complex. still have doubts about the effectiveness and the “cap and trade” principle. This means there Volumes on the ICE ECX December 2011 long-term stability of the carbon trading system is a “cap”, or limit, on the total amount of certaincontract were healthy at 10.4 million units and have raised issues on the need to streamline greenhouse gases that can be emitted by thetraded, while a total 17.4 million EU carbon and reorganise the security and management of factories, power plants and other installationsdioxide emissions allowances (EUAs) were carbon credits. in the system. Within this cap, companiestransacted across all vintages and exchanges. receive emission allowances which they can sellThe report also stated that the German thE hIstorY of cArboN crEDIts or buy from one another as needed. The limitgovernment (one of the nations that has been Carbon credits and carbon markets are a on the total number of allowances availablethe victim of carbon credit fraud) sold 300,000 component of national and international ensures that they have a value.spot EUAs at €15.44 each earlier on Tuesday attempts to mitigate the growth in concentration At the end of every year, each company mustin its weekly auction on Leipzig-based bourse of greenhouse gases (GHGs). The goal is to surrender enough allowances to cover all its 035
  • 30. UN PHoTo/r MArKLIN1emissions – otherwise heavy fines are imposed. the effects of this fraud on the market and the 1. air pollution in romaniaIf a company reduces its emissions, it can keep defrauded countries have hit major and minor 2. endre tvinnereim, Senior analystthe spare allowances to cover its future needs financial capitals, including a $61bn scam in the at the uK- based point carbonor sell them to another company that is short City of London where seven people have been thomson reutersof allowances. The flexibility that trading brings charged and are awaiting a trial in Februaryensures that emissions are cut where it costs 2012. bIllIoN toNNEs co2 trADEDleast to do so. Market players include large Rob Wainwright, director of Europol, says:greenhouse gas emitters from the power sector “Organised VAT fraud remains a significant other Carbon Marketsand industry, banks, hedge funds and other criminal activity in Europe. It is responsible US Marketstraders who provide liquidity and increase for draining huge resources from central Kyoto Country Permits (AAUs)market efficiency. government revenues and undermining joint Implementation Endre Tvinnereim, senior analyst at the UK- the objective of transforming Europe into a Clean development Mechanismbased Thomson Reuters Point Carbon, explains competitive and greener economy. Europol is European Cap-and-tradethe rapid rise of the global carbon market: “The determined to crack down on the organisedglobal carbon market has grown rapidly because crime groups involved and is pleased to haveclimate change is a major global problem and 2 assisted a number of successful operations thisdeep cuts in GHG emissions are needed, while year, carried out by law enforcement authoritiescarbon trading offers an opportunity to reduce Tvinnereim is also quick to address a major in EU member states. Europol is also currentlyemissions at the lowest possible cost. The carbon misconception about the carbon market: the monitoring apparent new trends in thismarket has also unlocked billions of dollars in idea that it is mostly about speculation and little criminal activity, including possible organisedprivate sector funding for emission reduction about reducing emissions. “In fact, most trading crime infiltration of the gas and electricityprojects in developing countries.” in the EUETS is done by power companies that markets.” But Tvinnereim sees challenges ahead. have a legal obligation to procure emission The cyber-theft of $9.48m of carbon“The major challenge for the market is the permits to cover their emissions under the allowances from a Czech firm has made thepolitical framework, as the market is created ETS,” he says. most headlines. As Thomson Reuters Pointby governments putting a declining cap on   Carbon reported, EUAs left the national registryemissions. Since governments may change their cArboN crEDIt frAUD in the Czech Republic and were transferred tominds about how best to regulate greenhouse But this seemingly benevolent market strategy an account in Poland, and then moved to one ingases, policy frameworks are also subject to has been responsible for more than an estimated Estonia, then to Lichtenstein. Then the creditschange. However, we see that a system such as $6.9bn in tax fraud damage for European seem to have disappeared. the EUETS has been relatively stable since it taxpayers, according to Europol. Kjersti Ulset, manager for the Europeanwas made law in 2003, in part because of the Recent headlines about carbon credit fraud Carbon Market at Thomson Reuters Pointlarge amounts of money at stake in carbon have splashed this market across financial Carbon, immediately suggested that “hackingassets. Thus, carbon trading is probably a more headlines across the globe. Still, the exact attacks of this type have also occurredpredictable framework than a carbon tax, which nature of this fraud is often misunderstood and elsewhere within the EU in the recent past.has fewer stakeholders.” the details elusive. VAT fraud, cybertheft and Although such incidents are negligible in terms ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10036
  • 31. energy 1 for thE MEDIUM AND loNg-tErM wE rEINforcE Efforts to IDENtIfY solUtIoNs both bY 2 co-oPErAtIoN wIth MEMbEr stAtEs AND A rEgUlAr DIAlogUE wIth stAKEholDErs.” 3UN PHoTo/ESKINdEr dEBEBE 4 of actual market impact they will over time fix most of the security issues. In the meantime, Kong and the Seychelles, and that some of the undermine the credibility of carbon trading as a member states should learn from online emissions trading companies involved had now policy measure to reduce emissions in Europe. banking and implement security solutions re-branded themselves as traders in power, Immediate actions to improve the security of available today.” metal and gold.” EU registries are thus needed.” Germany was also a victim of VAT tax fraud. Tvinnereim explains how VAT tax fraud Ultimately, it was the Czech Government that The German newspaper Sueddeutsche Zeitung happens so easily. “The VAT fraud arising from had to pay for the theft. The report also disclosed said that. according to Frankfurt’s attorney trading carbon allowances generally involved a Prime Minister Petr Necas’ statement about general and general prosecutor, the German seller charging VAT as normal, but then failing how the government would supply state-owned Government lost $1.18bn due to VAT fraud to pay the VAT to the tax authorities.” But there utility CEZ and emissions traders Blackstone in the EU ETS. As Thomson Reuters Point have been important developments to eliminate Global Ventures with around $25.3m in EU Carbon’s Michael Szabo reported, this was fraud. “Since the emergence of this kind of allowances to replace those stolen from them in markedly higher than the $279m loss estimated fraud in 2009, many countries have introduced January. by the government last July. a reverse-charge mechanism between taxable The cyber-theft of carbon credits can “A total of 50 companies are said to have counterparties, eliminating the problem,” he largely be attributed to the lack of experience cheated the tax authorities. The total damage says. of countries trying to monitor the market. amounts to $1.18bn. The Frankfurt-based The EU Commission for Climate Action Thomson Reuters Point Carbon senior analyst special commission investigating the crime, issued a plan to combat future theft. Connie Tvinnereim explains: “A general reason why codenamed Odin, identified more than 150 Hedegaard, European Commissioner for 1. connie hedegaard, minister for cyber-theft was possible is that the emission suspects, mostly CEOs and other businessmen. Climate Action, says: “The commission has climate and energy of Denmark trading infrastructure has been set up by He adds that at least four suspects remained in identified a range of actions that member states 2, 3 and 4: a major misconception the environment authorities of individual custody, some for almost a year.” can already take in the short term to further about the carbon market is that it is European member states. These government Szabo explained that “German authorities in improve security – for example, regularly about speculation and not so much agencies are good at monitoring pollutants, April 2010 raided over 50 businesses and 150 reviewing security plans, reinforcing registry about reducing emissions but less experienced with financial markets. homes, including offices at German investment account policies and identity checks, training The creation of a centralised European registry bank Deutsche Bank. The report also said the registry users etc. For the medium and long- from the third trading period should hopefully investigation led to as far away as Dubai, Hong term we reinforce efforts to identify solutions 037
  • 32. industry 1both by co-operation with member states and aregular dialogue with stakeholders.” The commission suggested the followingshort-term solutions for restoring faith in thecarbon trading market: regular reviews andupdates of registry security plans; a review It is currently not possible to give such market 1. isabel hagbrink, Seniorand strengthening of policies concerning the participants clear advice on this, as the legal communications officer of theopening of registry accounts; building on nature of a carbon credit is not a matter explicitly World bankbest practices; a risk-based review of existing dealt with by the laws of most member states.registry account holders; the facilitation of The IETA remains concerned and suggestsinformation exchange between member states that an in-depth, EU-wide screening of existingregarding suspicious requests to open an report, it strongly suggests a quick investigation registry account holders according to KYCaccount; better training for registry users; and of three points of interest if the market is to (“Know Your Customer”) criteria is urgentlybetter use of options in existing EU legislation take comfort in the work being done following required. This screening would be indispensableto prevent VAT fraud. Not all member states the suspension: first, an investigation of the for restoring confidence.have yet eliminated the risk of VAT fraud, actual causes of the alleged thefts; second, the Other recommendations from the IETAdespite the existence of enabling legislation at measures that the commission had repeatedly include making available as soon as possiblethe EU level to do so. asked national registries to take before their an official, comprehensive and up-to-date list The International Emissions Trading suspension by the commission; and third, of affected allowances. In the absence of suchAssociation (IETA) was quick to comment on whether the introduction of those measures by a list, market participants will be exposed tothe lack of clarity regarding the new minimum- the registries would have prevented the causes significant and continuing uncertainty whensecurity requirements after the re-opening of of the various alleged thefts previously. acquiring EUAs on the spot market. The IETAthe market. “Given that the minimum security As the IETA shows, there is currently no clear also recommends establishing full clarity on therequirements recently agreed to by European legal jurisdiction in many of the member states. legal status of stolen EUAs and the developmentauthorities to lift a registry suspension remain According to research by the group, one of the of a set of common protocols and mitigationconfidential, only time will tell if they are biggest concerns facing market participants is measures to protect market participants fromsufficient.” said Henry Derwent, the IETA’s what rights and liabilities (including criminal suffering financial loss if they have exercised allCEO and president. liabilities) attach to the inadvertent receipt or prudent measures to prevent the theft of credits While the IETA commends the commission’s purchase of an allegedly stolen carbon credit. or the receipt of stolen credits.038
  • 33. industry040
  • 34. tHinK roundtaBle tHe Bourse WarsTWo rECENTLy ANNoUNCEd, HIGH-ProFILE MErGErS BETWEEN CroSS-BordErGLoBAL ExCHANGES, ALoNG WITH rUMoUrS oF oTHEr dEALS, SIGNALWHAT MANy PrEdICT To BE A TrENd ToWArd INdUSTry CoNSoLIdATIoN ASINTErNATIoNAL BoUrSES AIM To BooST CoMPETITIvENESS, GAIN ACCESS ToNEW MArKETS ANd WHITTLE AWAy AT CoSTS.wrIttEN bY lIsA vINcENtIfIvE years ago, the Nasdaq ignited fury. The US upstart had attempted a takeover of the London Stock Exchange(LSE) but its overtures were soundly rebuffed. Nonetheless, while the electronic stock exchange, which has 2,872 listings todayand the largest trading volume of any other electronic exchange in the world, may have felt the sharp sting of rejection, the movetouched off a wave of consolidation culminatingin the New York Stock Exchanges (NYSE’s) $10.2 it was in advance talks with NYSE Euronext to create the worlds largestbillion tie-up with European exchange operator exchange operator worth a staggering $24 billion. (That offer hasnt comeEuronext, in a deal that was heralded as creating without some rivalry and Nasdaq, along with IntercontinentalExchange,the first global bourse. was making a play for NYSE as well, according to reports in the Wall Around the same time, Nasdaq bought OMX, Street Journal at press-time.) It seems the race among global exchangesa Scandinavian firm; Chicago’s two big exchanges to reposition themselves and tap emerging opportunities is again movingmerged; and in 2007 the LSE scooped up Borsa full-speed ahead.Italiana. Still, the massive worldwide recession that In fact, as established exchanges in Western nations continue to seepounded economies around the globe saw an end market share erode as both trading and listing happen increasingly onto the hustling, a temporary truce followed by four cost-saving platforms or on exchanges in emerging countries throughoutyears of relative silence. However, those days are Asia and the Middle East, industry players agree that consolidation willnow gone and the next chapter of the “bourse wars” continue.has begun in earnest. The London Stock Exchange has been making MErgEr ActIvItY in Asia has already begun with Singapore andheadlines again, only this time for eyeing a takeover Australias exchanges signing a major deal, and Hong Kong announcingof its once-rejected suitor Nasdaq, according to that it would also like to be involved in consolidation. The London-reports in British newspapers. That news came just Toronto merger also had the Gulf nations once again debating the meritsa few weeks after a surprise announcement by the of mergers. Cost-savings have been the common denominator of most ofLSE of a $6.9 billion tie-up with Canadian exchange these deals, as has the heated battle to gain market share.operator TMX. Yet within 30 minutes of making “Often these long-standing monopolies are under severe pressure fromtheir planned merger known, the deal was blown new, low-cost entrants – which is why sales have been falling in bread-out of the water with Deutsche Börse confirming and-butter businesses like cash equities,” states The Economist in a report. 041
  • 35. “Joining forces does not in itself realise revenue gains or alter this decline. But strongly positioned to capitalize on growth opportunities in emerging “JoININg forcEsit may make it possible to combine the technology and back-office platforms markets and deliver them to our customers in North America, Europebeing used by different exchanges, cutting costs. Efficiency savings are the and beyond,” Rolet says. DoEs Not IN ItsElfone element of the last round of consolidation that did arrive as promised.” rEAlIsE rEvENUE The two chief dealmakers of the London-Toronto merger, the CEOs of thoMAs KloEt, the CEO of TMX, adds: “We are creating anTMX and LSE, extolled the virtues of the merger through cost synergy international group with deep expertise, undeniable leadership in key gAINs or AltErand increased strength in the resources sector and emerging markets. In sectors and the ability to compete and win on the global stage. Canadian thIs DEclINE. bUtfact, the union would marry the worlds two largest exchanges for the customers will benefit from access to one of the worlds deepest capitalshares of mining, oil & gas and other resources companies, and dominate pools while European issuers will have an effective gateway to North It MAY MAKE Itthe listing and trading of financial instruments in the booming global American financial markets.” PossIblE to coMbINEcommodities and natural resources sector. And according to LSE CEO Yet such unions are not always made in heaven and with so much atXavier Rolet, the tie-up with Torontos exchange would achieve $56 stake, whether in the form of lost business at home, the fear of dwindling thE tEchNologYmillion cost savings in a year and $160 million in five years. Likewise local employment and even wounded national pride, the long road to AND bAcK-offIcEthe hotly contested NYSE-DB deal is expected to generate annual cost globalisation is lined with regulatory and political setbacks. Raymondsavings of some $400 million, principally from information technology, Bachand, Quebecs finance minister, says of the deal: “We are going to PlAtforMs bEINgclearing, and market operations, as well as from corporate administration take our time to study the details of this transaction to be sure that this UsED bY DIffErENtand support functions. meets Quebec’s economic needs. We need to assure that access to capital “This new international leader, marrying the right cost structure, is maintained for Quebec businesses, if not improved.” ExchANgEs, cUttINgfinancial strength, technological expertise and product portfolio, will be Furthermore, Canadian financial institutions, including TD Securities, costs.042
  • 36. tHinK roundtaBle 1 2 31. Xavier rolet, ceo, CIBC and National Bank, issued a public letter warning that Canada risks venues that operate with less transparency and far fewer regulatorylondon Stock exchange. losing its clout as a financial centre if the merger goes through. “We do requirements, will position the new company as a true global player well2. Duncan niederauer, not believe this takeover offer is the right solution to creating a globally placed to drive the long-term strength and competitiveness of transparentceo of nySe euronext. sustainable exchange and nor will it allow Canada to achieve the benefits and regulated markets.”3. andreas preuss, Deputy of globalisation offered,” notes Bob Dorrance, head of TD Securities. Just one example among many, the New York Stock Exchange handledceo of Deutsche börse ag. “Although certain aspects of the listing business are to be maintained a meagre 35 per cent of NYSE-listed shares in December 2010. That’s in Canada, there is no guarantee that this will continue to be the case down just slightly from a year earlier, but reflects a huge erosion over the in the future,” according to a commentary signed by Dorrance, CIBC years due to competitors such as Nasdaq OMX, as well as next-generation World Markets chief executive Richard Nesbitt, National Bank co- rivals, such as BATS and Direct Edge. Deutsche Börse has only a 70 per chief executive Ricardo Pascoe, AltaCorp Capitals George Gosbee and cent share of the trading in its own listed stocks, down from 90 per cent Casgrain chief executive Guy Casgrain run in the National Post. “As the just a few years ago. For Euronext, the percentage is even lower. new entity inevitably does future acquisitions, the derivatives specialty “In order to increase market share, the exchanges have to cut trading in Montreal, venture capital expertise in the West and Toronto’s hopes costs, and one way to do that is to consolidate trading systems and to be a global financial services hub could suffer a severe and potentially possibly clearing systems,” says Benn Steil, director of international irreversible setback.” economics at the Council on Foreign Relations in New York and author of Money, Markets and Sovereignty. “Broadly speaking, trading volumes stIll, toroNto and London have faced increasing competition are extremely sensitive to trading costs.” from alternative trading venues. In fact, major global stock exchanges Andreas Preuss, who is slated to serve as deputy CEO under the planned have been reeling from losses of market share to smaller rivals in recent merger of Eurex parent Deutsche Börse and NYSE Euronext, should it years, as traders turn to new platforms that operate in faster, cheaper and, succeed, says: “The increasing globalisation of the trade-matching and quite often, less transparent venues. Recouping some of that lost market clearing business builds pressure on exchanges to drive a greater level share has proven a major contributor to this current rash of deal making of activity through their electronic platforms and reduce costs. For all and might wind up being a merger’s saving grace. of us this is a scaling business, under constant need to get more [trading Duncan Niederauer, CEO of NYSE Euronext at the time of the Deutsche volume] onto our existing infrastructure.” Börse bid, noted: “The increasing globalisation and interconnectedness of So while local communities and politicians may call foul, there is no capital markets, and the rapidly growing presence of alternative trading doubt that business has already begun looking, and moving, elsewhere. 043
  • 37. thE NEw CHINA IS A rISING ForCE IN THEGLoBAL ECoNoMy, WITH A GroWINGPoPULATIoN ANd SEEMINGLy ENdLESS rESoUrCES. thINK TAKES A LooK AT THE rISE oF THE WorLd’S NExT ECoNoMIC SUPErPoWEr.worlDorDEr wrIttEN bY JoANNE MolINA044
  • 38. World economy thE People’s Republic of China has leapfrogged from an impoverished Communist state to an international economic powerhouse in 30 years, becoming an unavoidable player in global politics. With a population of 1,330,141,295 (July 2010 est) and a growth rate of 0.494 per cent (2010 est), it is currently the world’s largest exporter and second-largest economy, recently overtaking Japan. The EU is China’s biggest trading partner, while China is the EU’s largest source of imports and second largest two-way trading partner. China is currently positioned to overtake the United States as the world’s number one economy around 2025, according to the World Bank and the global investment firm Goldman Sachs. As Vivek Arora, assistant Director in the International Monetary Fund’s (IMF’s) Asia and Pacific department, and Athanasios Vamvakidis, deputy division chief in the IMF’s strategy, policy, and review department report: “China’s share in world trade has increased nearly tenfold over the past three decades, to about nine per cent, while its share in world gross domestic product has risen to 13 per cent from less than three per cent. Real GDP has grown by about 10 per cent annually, implying a doubling every seven to eight years. The resulting 16-fold increase in a major economy’s national income during a single generation is unprecedented. In 2010, the gross domestic product of the year was $6.05 billion, up by 10.3 per cent over the previous year.” The US-based Brookings Institute economist Hu Angang, who is also professor of Economics and director of the Center for China Studies at Tshingua University in Beijing, forecasts that by 2020 China will become a “mature, responsible and attractive superpower” that will contribute, alongside the EU, to the “end of the unipolar era dominated by the United States”. Daniel Griswold, director of the Center for Trade Policy Studies at the Cato Institute in Washington DC and author of the book Mad About Trade: Why Main Street America Should Embrace Globalisation, explains the three primary reasons behind China’s exceptional growth. “It began in 1978 when farmers were allowed to keep and sell a share of their output,” he says. “Other important reforms were the lowering of barriers to international trade and foreign investment, the deregulation of domestic prices, and the freedom of Chinese in urban areas to start their own businesses and own their own homes.” Griswold reflects on the historical momentum to place China’s success in a broader framework. “I don’t think we need to fear China’s rise in the global economy. After all, China includes one-fifth of mankind. Up until the 1800s, China had been the world’s largest economy and the reformsthe Shanghai skyline, china’s fastest-growing city. 045
  • 39. World economyof the past 30 years are only allowing China to regain its rightful place,”he asserts. “Even if China’s economy becomes larger than that of the US,its standard of living will still be only one-quarter of that enjoyed byAmericans.” Analysis of different types of enterprises showed that in the first twomonths of 2011, the year-on-year growth of state-owned and stateholding enterprises went up by 10.6 per cent; collective enterprises, 10.5per cent; shareholding enterprises 15.6 per cent; and 12.2 per cent growthfor enterprises funded by foreign investors or investors from Hong Kong,Macao and Taiwan province. The year-on-year growth of heavy industryin the first two months was 14.4 per cent, and 13.3 per cent for lightindustry. “That these improvements involve one-fifth of the world’s populationhighlights the vast human scale of the achievement. Several hundredmillion people have been lifted out ofpoverty, and living conditions have 1improved for many more people in ashorter period of time than ever before,”conclude Arora and Vamvakidis.brooKINg INstItUtE policyanalyst and contributor Willy Lam,also a senior fellow at the JamestownFoundation, a professor of China Studiesat Akita International University, Japan,and an adjunct professor of history atthe Chinese University of Hong Kong,describes the country’s momentum inhis report China’s Quasi-SuperpowerDiplomacy, Prospects and Pitfalls. “Thediplomatic and geopolitical implicationsof China’s precipitous rise are thoroughlyappraised. With its economy predicted togrow at eight per cent despite the worldfinancial crisis, China is widely regardedas a prime locomotive for economicrecovery worldwide,” he says. “The People’s Liberation Army isbuilding nuclear submarines and aircraftcarriers, and the country’s first astronaut is expected to set foot on themoon before 2015. Taking advantage of the damage that the financial 2crisis has dealt the American laissez-faire system, the Chinese CommunistParty is also gunning for a novel international financial architecture, orone that is not dominated by the US.” Prada and Gucci are still recovering from reports of merchandise being 1. Daniel griswold, Director, EU nations and the US have expressed great concern about the rapid made in China instead of in EU countries such as France and Italy, centre for trade policy Studiesrise of China’s economy, often citing the abundance of exports and an the presumption being that when goods are crafted in China, they are at the cato institute.increasing trade deficit as legitimate threats to their own economies. But automatically inferior. Chinese immigrant communities in Italy are also 2. the guangzhou opera houseas Griswold suggests, there is a difference between what lawmakers claim being eyed suspiciously, although their presence is largely due to the fact by Zaha hadid.is a healthy economic policy that will protect domestic economies and that they work for less than typical wages and that Chinese entrepreneurs 3. the Forbidden city, beijingthe actual spending patterns of consumers in those countries. are buying formerly Italian-owned businesses largely because the owners 4. industrial pollution is the bane “Imports from China arouse political opposition because they are were looking to sell at a high rate, regardless of the buyer. of china’s fast growing cities.so visible to consumers, and they do compete against such powerful, Griswold notes: “While politicians and voters express worry about 5. new hotels opening up allentrenched interests as steel and textile companies and their unions,” he imports from China, American consumers have voted with their dollars over china include the ritz-says. “It doesn’t help that China is so big and its government so oppressive to embrace lower-cost goods from China. Access to low-cost imports carlton, pudong Shanghai.of political and civil freedoms. Politicians in the US often look for foreign from China helps Western countries keep a lid on inflation. Those goodsscapegoats to distract attention from their own domestic policy mistakes. are especially important in the budgets of lower-income workers.  IncomeJapan was the target 20 years ago. Now it’s China’s turn.” inequality would actually be greater in the US if poor families could not Stereotypes about the Chinese are also a driving force behind recent buy more affordable clothing, shoes, and consumer goods from China.”scandals in the luxury goods community. Many companies, including The IMF research by Arora and Vamvakidis also supports the claim046
  • 40. CoUrTESy THE FAIrMoNT HoTELS 3 4 5that China’s growth could have positive benefits for other countries. “Our important for some of China’s neighbours] and business travel, andempirical results suggest that the role of China’s growth in explaining consumer and business confidence.”output fluctuations in other countries is sizable and has increased  There has been much accusation recently that the Chinese Governmentsubstantially in recent decades. The results include effects both during has been hoarding reserves in order to “manipulate” the value of itsthe one to five-year period typically associated with business cycles and currency, the yuan, and maintain a favourable trade balance. Manyover the longer term,” the pair says. consider this tactic a threat not to just to international economic stability, “In the short and medium term, our results suggest that a one percentage but to the financial well-being of the Chinese people.point shock to China’s GDP growth is followed by a cumulative responsein other countries’ growth of 0.2 percentage point after three years and IN JANUArY, New York Times economic columnist Paul Krugman0.4 percentage point after five. What accounts for this impact? Our suggested that “Chinese currency policy is a lose-lose proposition,analysis suggests that initially almost all of the impact is felt through trade simultaneously depressing employment here and producing anchannels. But, over time, the impact of non-trade channels increases. overheated, inflation-prone economy in China itself… China has been “Over a full five years, about 60 per cent of the impact of China’s growth using a weak currency to keep its wages and prices low in dollar terms;on other countries seems to be transmitted through trade channels and market forces have responded by pushing those wages and prices up,the remaining 40 per cent through other channels. Examples of these eroding that artificial competitive advantage. Some estimates I’ve heardother channels include capital flows, tourism [which is particularly suggest that at current rates of inflation, Chinese undervaluation could 047
  • 41. be gone in two or three years – not soon enough, but sooner than many financial services. This will mean more business for companies andexpected. workers in the West. As Chinese companies move up the value chain, “China’s leaders are, however, trying to prevent this outcome, not just to they will start producing innovative products and not just assemblingprotect exporters’ interest, but because inflation is even more unpopular iPhones and other products created outside China.”in China than it is elsewhere. One big reason is that China already in The rise of the middle class will also mean a dramatic increase andeffect exploits its citizens through financial repression (other kinds, too, change in important industries. “While it’s hard to predict,” Griswoldbut that’s not relevant here). Interest rates on bank deposits are limited says, “it’s safe to say that as incomes and education levels in China rise,to just 2.75 per cent, which is below the official inflation rate – and it’s the goods it produces will look more like the products now being madewidely believed that China’s true inflation rate is substantially higher than in Malaysia and other more developed nations in the region. I expectits government admits. Rapidly rising prices, even if matched by wage China will be a major global producer of automobiles, civilian aircraft,increases, will make this exploitation much worse. It is no wonder that that sort of stuff.”the Chinese public is angry about inflation and that China’s leaders wantto stop it.” thE IMf says China now accounts for nearly one-tenth of global The rise of inflation in China will have a particularly harmful effect on demand for commodities and more than one-tenth of world exports ofthe country’s rising middle class, whom Griswold claims hold the greatest medium and high-technology manufactured goods. It has also become apotential in China’s rapid growth. He also projects that this middle class major exporter of electronics and information technology products andwill be the source of many benefits to the EU and US. is the largest supplier to the US of consumer electronics products such as  “Within the next decade or two, China will become a middle-income, DVD players, notebook computers and mobile phones.middle-class economy. This will mean greater global demand for all the The National Bureau of Statistics in China further supports histokens of middle-class life – cars, appliances, travel, higher education, claim with the most recent data on consumer spending and real estate.048
  • 42. World economy electronic equipment was up 14.3 per cent; the production and supply of electricity, gas and water was up 9.7 per cent; and ferrous metal smelting and pressing was up by 8.6 per cent. The sales ratio of industrial products in the first two months of 2011 was 97.7 per cent, or 0.4 percentage points higher than that in the same period of last year. The total export delivery value of industrial enterprises was $201.2 billion, up by 20.2 per cent year-on-year. The NBSC report also says that in terms of 468 products measured, the output of 397 of those products in the first two months showed a year-on- year growth. Of this total, the output of crude oil was 33.72 million tons, up by 5.5 per cent; that of electricity was 677.3 billion kilowatt-hours, up by 11.7 per cent; that of pig iron was 114.18 million tons, up by 12.6 per cent; that of cement was 204.29 million tons, up by 9.1 per cent; that of motor vehicles was 3.13 million, up by 10.3 per cent, of which, the output of cars was 1.67 million, up by 10.8 per cent. China’s exponential growth has important lessons that other economies, such as those of the Gulf region, can absorb. Griswold explains: “China’s growth has sprung from freeing its domestic economy and opening itself to the global economy. The Gulf region states need to deregulate their domestic economies so that local entrepreneurs and companies can flourish. They need to open themselves more widely to foreign goods and investment. Just relying on the sale of petroleum will not create the kind of challenging and rewarding jobs that their young workers need to be fulfilled.” IN coMPArIsoN to other BRIC countries, Griswold says: “All four BRIC countries are following their own path to development. Russia is probably the least promising. Its population is declining and it is overly reliant on natural resources. Brazil will remain a major agricultural exporter as its industrial sector continues to grow. India is far ahead of China in its services and IT sectors, but it lags in manufacturing because of continued over-regulation. India’s biggest advantages over China are its demography, its English-language heritage, and its democratic system.” Despite the optimistic claims about the rising middle class and the international economic benefits that follow their strengthening economy, China’s human rights violations should give pause to consumers, nations and companies that make the decision to do business in China.1 Human Rights Watch (HRW), a non-governmental international organisation dedicated to monitoring human rights violations throughout the globe, recently offered an analysis of China’s first-ever According to its report, in the first two months of 2011, the total retail National Human Rights Action Plan (2009-2010), in which the Chinese1. uncontrolled development sales of consumer goods reached $442.5 million, a year-on-year rise Government recommitted to existing human rights protections inand pollution threatens heritage of 15.8 per cent, or 3.3 percentage points lower than that in December domestic and international law. According to HRW, at the same timesites such as the Forbidden city. 2010. Of this total, the retail sales of the units above designated size the Chinese Government has touted its commitment to human rights2. economists say low-cost stood at $193.49 million, up by 20.7 per cent. One of the fastest growing through this document, it has also continued to egregiously violate thosechinese goods have helped internal investments was real estate. In the first two months of 2011, obligations in practice, perhaps most notoriously through its persecutionWestern countries control the investment in real estate development was $64.6 billion, a year-on- of 2010 Nobel Peace Prize winner Liu Xiaobo, but also in the case ofinflation. year growth of 35.2 per cent. Of this total, the investment in residential the Chinese artist Ai Weiwei, who says he was recently put under house3. Shanghai’s industrial buildings reached $45.8 billion, up by 34.9 per cent. arrest by the authorities.area: industrial growth has Industrial growth is also an important factor in contributing to and Amnesty International, another non-governmental agency, reportsmaintained the middle class. maintaining the economic viability of the new middle class. The NBSC that regular human rights violations by the Chinese Government include reported that, grouped by different sectors, in the first two months of arbitrary detainment, harassment, house arrest and incommunicado 2011 all of China’s 39 industrial divisions kept year-on-year growth. Of detention, as well as the imprisonment of human rights defenders, this total, the growth of textile industry was 7.7 per cent; the manufacture including lawyers, journalists, environmental activists and proponents of raw chemical materials and chemical products was up by 15.3 per of democratic reform. Amnesty also points out China’s use of the death cent; the manufacture of non-metallic mineral products was up by 17.8 penalty for non-violent crimes and extensive evidence of unfair trials and per cent; the manufacture of general machinery was up 22.4 per cent; the use of torture in places of detention, including beatings, hanging by the manufacture of transport equipment was up 14.4 per cent; the the limbs, force feeding, injecting unknown drugs and sleep deprivation. manufacture of electric machinery and equipment was up 17.7 per cent; Statistics on death sentences and executions remain classified as state the manufacture of communication equipment, computers and other secrets. 049
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  • 44. tHinKing ForWard emerging marKetS increaSe as the biggest challenge they face and more government competition and their global poWer are in anticipatory mode. The recent intervention through industry in their Estimates show that 70 per cent of ban on bank telesales in the UAE own backyards. world growth over the next few years and lockdown of Islamic windows will come from emerging markets, with in conventional banks in Qatar are rapiD technology innovation China and India accounting for 40% examples of game-changing regulation. createS a Smart, mobile WorlD of that growth. The IMF forecasts that Financial sector change will continue In spite of the digital revolution of the total GDP of emerging markets throughout this year and the next, with the past 25 years, consumers still could overtake that of the developed banks adopting the flexibility approach want more powerful devices and economies as early as 2014. As in strategy until the dust settles. applications, while businesses seek emerging markets gain in stature, new more cost-effective technology to companies are taking center stage. The cope with increasingly complex rise of these emerging market leaders challenges. Satisfying these demands will constitute one of the fastest- will lead to explosive growth in data growing global trends of this decade. WE’rE CLEArLy and analytics, to new competitionCoUrTESy oF ErNST & yoUNG MENA In light of the economic expansion SEEING INCrEASEd in almost every field and to the in rapidly developing economies, local and regional companies will CoMPLExITy IN disruption and realignment of many industries. Welcome to the world of need to reassess their business models ECoNoMIC cyber competition. Evidence of the and partnerships. Other emerging ANd SoCIAL impact of the rapid adoption of the markets will provide opportunities for significant revenue growth as well ENvIroNMENTS, digital revolution has been emphasized by commentators who see regional wrIttEN bY PhIlIP stANtoN as a source of talent, true innovation WITH CoMPANIES youth increasingly driving not only and ground-breaking approaches to ANd ECoNoMIES perception and opinion in the region the HAvING To AdAPT business. but also demand and activism. cleantech becomeS a To INCrEASINGLy Demographic ShiFtS competitive aDvantage INTErLoCKING tranSForm the global new SySTEMS. The Cleantech-enabled transformation WorKForce to a low-carbon, resource-efficient Despite a growing population, the economy may be the next industrial rEGIoNAL availability of skilled workers is actually revolution. As this transformation CorPorATIoNS shrinking. A ‘demographic divide’ will math NEEd To BE accelerates, regional corporations are soon arise between countries with increasingly realizing that they must younger skilled workers and those that understand the impact of Cleantech on AWArE oF THESE face an aging and shrinking workforce. their industries and develop strategic TrENdS ANd The war for talent will become SIx GLoBAL plans to adapt to this change. As global Cleantech investment surged 30% in BE PrEPArEd To increasingly acute in certain sectors, especially areas requiring high skill dEvELoPMENTS To 2010 to US$243 billion, we expect rESPoNd rAPIdLy. levels and more education. Regional SHAPE rEGIoNAL more investments to be made in the companies could see flight of talent TrENdS For THE region as companies try to sustain outwards and a lack of talent coming competitiveness. into the region. Skilled youthful people NExT dECAdE. MENA countries need to balance of the region will be lured away by environmental goals with providing governmentS enhance tieS exciting new opportunities elsewhere. globAl economies are now so a sustainable future for their rapidly With private Sector Regional companies would need to tightly interconnected that companies, growing populations. As costs decrease, As a result of the global recession, build in a buffer of qualified workers governments and industries are supply chains globalize and ever more many governments are trying to further who are up-skilled periodically. Our beginning to interact in ways we could energy is derived from renewables, their national interests through diverse recent report, Leading across borders: not have imagined just a few years ago. new business opportunities arise and vehicles and activities, including state- inclusive thinking in an interconnected Ernst & Young has tracked the rise of existing business are transformed. owned corporations, sovereign wealth world, outlines three actions that six key developments that are shaping funds (SWF) and industrial planning leaders can take to position their the international business world. We’re banKing SeeKS recovery and regulation. The total assets of SWFs organizations for future success: clearly seeing increased complexity in through tranSFormation are expected to climb from roughly collaborate in the face of uncertainty; economic and social environments, Three years after the financial crisis US$3.5 trillion in 2010 to US$8 trillion seek out new cultures and experiences; with companies and economies having began, the global financial system by 2015, giving GCC governments and sponsor rising stars who look, to adapt to increasingly interlocking remains in flux. Regulatory clarity increasing influence in the corporate think, and act differently. systems. Regional corporations need is nearing but many issues remain world. State-owned enterprises (SOEs) to be aware of these trends and be unresolved. Not surprisingly, financial are becoming larger and more globally Philip Stanton is the Chief operating officer prepared to respond rapidly. institutions cite regulatory uncertainty competitive. Companies can expect at Ernst & young MENA 051
  • 45. FoodfooD INsEcUrItYWITH Food PrICES rISING To dANGEroUS LEvELS, Food SECUrITy THrEATENSGLoBAL GroWTH ANd SoCIAL STABILITy AS Poor HArvESTS, CIvIL UNrEST ANdSoArING dEMANd STrAIN rESoUrCES AroUNd THE WorLd. UN PHoTo/ForTEwrIttEN bY lIsA vINcENtIAroUND the world, the food system is in crisis. Prices have skyrocketed and are higher nowin real terms than at any time since 1984. If expected droughts devastate China’s wheat harvest, the world’slargest producer, as many fear, prices will climb even higher. The increased prices, the second spike in lessthan four years, are adding millions to the number of people who go hungry each day. Experts are sounding the alarm and the G20, According to some, solutions to the current have been wrestling with that reality since thea grouping comprised of the world’s largest food problem do exist. “Agricultural productivity spike in food prices four years ago. This is theeconomies, has placed “food security” at the growth is only one to two per cent a year,” group of world-renowned agricultural researchtop of its agenda for 2011, the year in which the warned Joachim von Braun, director general of centres that helped more than double the world’sglobal population is expected to rise to seven the International Food Policy Research Institute average yields of corn, rice, and wheat between thebillion. The current crisis poses a tremendous in Washington, DC, at the height of the 2007-08 mid-1950s and the mid-1990s – an achievementissue for world leaders, policy-makers and crisis. “This is too low to meet population growth so tremendous that it became known as the Greencorporations, for if we cannot feed our current and increased demand.” Revolution. With world population set to increasepopulation, how could we possibly feed the Von Braun and his colleagues at the Consultative by two billion by mid-century, these experts nownine billion expected by 2050? Group on International Agricultural Research say we need a repeat performance and must052
  • 46. CUrT CArNEMArK/THE WorLd BANK053
  • 47. Fooddouble current food production by 2030, yet howto achieve this is the centre of considerable debate. During the 2007-08 crisis, export bans,food riots, panic buying and emergency pricecontrols added fuel to the fire, something weare again beginning to witness with the currentsurge in food prices. Riots in Algeria andTunisia kicked off the new year, while in theUS food reserves are already disturbingly low, UN PHoTo/jjoHN MCLLWAINEsays Dennis Conley, an agricultural economistat the University of Nebraska. At the same time,the world’s agricultural systems are increasinglychallenged by water scarcity, climate changeand volatility, raising the risk of production 2shortfalls. There is no simple solution to thehurdles faced by the international community.YEt, fINAllY, more global leaders arebeginning to acknowledge the magnitude ofthe situation and in 2009 the assembled leadersof the G8 put food security at the top of the list,promising to find $20 billion for agricultureover three years (as of last year, $6.5 billion hadbeen deployed). This year, the current presidentof the G20, France’s Nicolas Sarkozy, made foodsecurity a priority and the Gates Foundation, 3the world’s richest charity, which had previouslyfocused on health and development generally,has begun to focus more on feeding the world. UN PHoTo/joHN MCLLWAINE UN PHoTo/jEAN MArC FErrEWhile Kofi Annan, former secretary general ofthe UN, joined the gathering of businesspeopleand policy-makers at the World EconomicForum held in Davos, Switzerland, in Januaryto launch what’s being dubbed a “new vision for 1 4agriculture”. This roadmap focuses on three pillars –creating food security; driving economicgrowth – especially in rural areas, where three- Earth every day,” says Hugh Grant, Monsanto’s to the limit and placing public education in the 1. Kofi annan, former Secretaryquarter’s of the world’s poor live; and protecting CEO. “The new vision for agriculture focuses equation as well. general of the united nationsthe environment (agriculture accounts for 70 not just on small-holder agriculture but Many players currently at the table are 2. bruno le maire, France’sper cent of water use and up to 30 per cent of agriculture in its entirety around the world. proposing following the route already taken, agricultural ministergreenhouse gas emissions). Aspirations are high It’s a big subject and will involve many, many where modern farming techniques, which 3. Wheat harvesting.with a goal of increasing production by 20 per people. It’s a question of how to improve policy, introduced pesticides, synthetic fertiliser, 4. French president nicolas Sarkozy.cent, while decreasing green house gas emissions how to broaden infrastructure and strengthen irrigation projects and genetically modifiedby 20 per cent and reducing the prevalence the markets for the products and crops these crops are expanded. Food companies, plantof rural poverty by 20 per cent every decade, farmers grow. When you bring together all breeders and international developmentaccording to the World Economic Forum. those pieces it’s a daunting challenge but it’s agencies are all pinning their hopes on a repeatHowever, these milestones cannot be achieved achievable.” performance of the Green Revolution, whichwithout public and private partnerships. In fact, the complexity of food security is began five decades ago. Seventeen global companies have signed immense. Consider the simple fact that demandon, signaling rising alarm in the private in India and China is shifting away from cereals IN AfrIcA, the only continent that wassector. Included in the initiative are corporate and towards meat and vegetables; or that obesity passed over by the agricultural transformation,players Archer Daniels Midland, BASF, Bunge rates around the world are surging. In China, Annan is working to build a rich breadbasket.Limited, Cargill, the Coca-Cola Company, writes PBS commentator Ray Suarez in a report “Africa is the only continent which does notDuPont, General Mills, Kraft Foods, Metro on the rising rate of obesity in China, “portion grow enough food to feed itself,” notes Annan,AG, Monsanto Company, Nestlé, PepsiCo, sizes are getting bigger, Western-style food is who is the chairman of the Alliance for GreenSABMiller, Syngenta, Unilever, Wal-Mart and widely available in urban areas, and people are Revolution in Africa (AGRA). “It alone hasYara International. “The challenge really is how eating out more often”. Changes in lifestyles, failed, in recent decades, to see agriculturalwe are going to feed 200,000 new people on hence, are further straining a system pushed productivity keep pace with its growing054
  • 48. of greenhouses, one on top of the other, into vertical farms for densely populated urban locales, where nearly half of the world’s population now lives. “High-rise food-producing buildings will succeed only if they function by mimicking ecological process, namely by safely and efficiently re-cycling everything organic, and re-cycling water from human waste disposal plants, turning it back into drinking water,” he says. Abandoned skyscrapers could be retrofitted into these multi-level farms with food grown using sustainable greenhouse and hydroponic techniques.BILL ANd MELINdA GATES FoUNdATIoN bY 2050, nearly 80 per cent of the world will be living in urban areas and the necessity for cheaper, locally grown food will help to reduce carbon emissions, make agricultural production less vulnerable to harsh weather, and help control 1 fluctuations in food prices, Despommier says. “The concept of indoor farming is not new, since hothouse production of tomatoes, a wide variety of herbs, and other produce has been in vogue for some time,” he notes. “What is new is the urgent need to scale up this technology to accommodate another three billion people. An entirely new approach to indoor farming must be invented, employing cutting-edge technologies. Vertical Farms must be efficient [cheap to construct and safe to 2 3 operate], many storeys high and situated in the heart of the world’s urban centres. If successfully implemented, they offer the promise of urban renewal, sustainable production of a safe, year- 1. poor maize, farmer shows the population. Africa was bypassed by the science- Last year, a public-private partnership in round and varied food supply, and the eventual purple on his crop that means very based agricultural development, built on the Tanzania was set in motion by an international repair of ecosystems that have been sacrificed poor yields. (agra) ideas of Norman Borlaug, which so dramatically partnership of global agriculture businesses for horizontal farming.” 2. Different kinds of maize. transformed food production in Asia.” (including Unilever, Yara International, Yet until productions levels rise, in the 3. varieties of rice. Annan and AGRA are seeking to transform Diageo, Syngenta, Dupont and Monsanto), short term, agencies and governments are Africa from food importer to self-sufficiency, donor agencies (such as USAID, AGRA and beginning to act. The G20 is looking at some hoping that one day soon not only will the the UN’s Food and Agriculture Organisation), stopgap measures to avoid a repeat of 2007-08 region feed its own citizens but others around and the Tanzanian government. The Tanzania and France is close to giving a green light on the world, too. The organisation has assisted experiment is being watched carefully as a plans to improve transparency on agricultural farmers in getting the supplies needed including fast track to the Green Revolution, with some data, increase co-ordination on export policies higher-yielding seeds and fertilisers; putting banking on achieving success within one and launch emergency wheat and rice stocks, in place networks of agro-businesses and generation. according to France’s Agricultural Minister, retailers; and giving young businesses access Yet others in the industry are looking toward Bruno Le Maire. But getting nations to regulate to capital. “We are bringing governments, more unexplored, 21st-century territory to financial commodities markets, which Nicolas development partners, farmer organizations alleviate the world’s food problems. One Sarkozy blames for exacerbating surges in food and the private sector together in an integrated proposed sustainable food project by Dickson prices, will be far more difficult to realise. and comprehensive way to provide the financial Despommier, a professor of microbiology “We really fear that the world might live and technical support needed,” he says. Ghana, and public health, offers an alternative to exactly the same kind of situation it faced in Mali, Mozambique and Tanzania have all begun established agricultural practices, which have 2008 with food riots and instability in some to reap the benefits of a modernised approach helped feed the masses but often at steep costs parts of the world,” Le Maire says. “We are in to farming, which includes increasing land to the environment and local communities. a situation where we have to take decisions, productivity and tapping new plant technologies. Despommier likens his vision to the stacking concrete decisions.” 055
  • 49. HealtH sPEllINg oUt sUccEss A HIGH PErCENTAGE oF ENTrEPrENEUrS ANd CrEATIvES SUFFEr FroM dySLExIA, ANd WHILE THErE IS NoW A GrEATEr UNdErSTANdING oF THE LEArNING dISABILITy THAN IN THE PAST, THErE IS STILL PLENTy For SCHooLS, ANd SoCIETy AS A WHoLE, To do. wrIttEN bY shAlAKA PArADKAr thE list of famous people with dyslexia is a long one and contains many of the greatest artists, entrepreneurs and creative talents that the world has ever known: Leonardo da Vinci, Thomas Edison, Albert Einstein, Walt Disney, Tom Cruise, Sir Anthony Hopkins, Uma Thurman, Sir Richard Branson, Sir Winston Churchill and chef Jamie Oliver to name but a few. Many of these people failed spectacularly at school, were written off by their teachers and succeeded only because of their parents’ belief in them. According to The Dyslexia Research Institute, 10 to 15 per cent of the US population has dyslexia, yet only one-third of them are recognised and receive assistance. Without proper diagnosis and help, dyslexics remain only functionally literate, limiting their ability to find jobs. However, when they do find the support to start something on their own, dyslexics are five times more likely to become successful entrepreneurs than the general population. Last year, Simfonec, a science research centre based at London’s Cass Business School, surveyed 300 entrepreneurs and found that 20 per cent of those studied were dyslexic. A 2003 report by Tulip Financial Research showed that nearly 40 per cent of Britain’s self-made millionaires were dyslexic – this included chef Oliver, businessman Lord Michael Heseltine and model Jodie Kidd. Simfonec’s study also showed that dyslexic entrepreneurs exhibited higher levels of creativity then others. In a damning indictment of current educational systems, the research found that 70 per cent of dyslexic entrepreneurs did not succeed at school. Dr Julie Logan, director of Simfonec, says this research not only links dyslexia and entrepreneurship for the first time, it also has fundamental implications about how entrepreneurship should be fostered.056
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  • 51. HealtH a dietary approach to dyslexia Neurologist dr Natasha Campbell- McBride was prompted to study the relationship between neurological GETTy/GALLo IMAGES disorders and nutrition, when her son was diagnosed autistic. dr Campbell- McBride, who runs the Cambridge 2 Nutrition Clinic, specialises in using the nutritional approach as a treatment. 1. richard branson, founder of virgin In her book Gut and Psychology airlines 2. orlando bloom, actor syndrome (GaPs). natural Treatment 3. uma thurman, actor 4. albert Of autism, aDHD, Dyslexia, Dyspraxia, einstein, father of modern physics Depression and schizophrenia, dr 1 5. paul orfalea, founder, Kinko’s Campbell-McBride details the GAPS Nutritional Protocol she uses to treat patients with learning disabilities. “Children with dyslexia are often very bright, but many of them suffer typical GAPS physical problems, such as allergies, asthma, eczema, bedwetting and hay fever. They are usually malnourished: when we test them we find the same typical GAPS nutritionalAFP/GrAPHEAST deficiencies,” she says. “Testing for gut flora shows that they 3 4 5 have gut dysbiosis. So, the gut-brain connection in dyslexia is the same as in the other GAPS conditions, described in “One of the most interesting findings of our research has been that In hindsight, Atkins says dyslexia has been a gift. “Because you cannot my book and on www.gaps.me.” dyslexics can grow their businesses quickly because they are able to read very well, you learn to read body language, to listen astutely and if dr Campbell-McBride recommends delegate, something that many managers find difficult. They delegate asked to read aloud by a teacher, you can predict what might be in the that all processed carbohydrates, to cover their own weaknesses, but this helps them get the best out of text and respond. The last thing you want to do is admit you cannot read. processed foods, artificial fats, cooking people,” Dr Logan says. So you learn to hold your nerve, become adept at storytelling and public oils, grains and sugar be cut out for “The dyslexic entrepreneur uses unique, creative ways to motivate speaking.” dyslexic children. “dyslexia is not staff and is also very good at communicating the mission. They are quite Today, Atkins is on the board of the Royal Navy, sits on the audit incurable! By changing your child’s diet confident – which is unusual for a dyslexic. But when put in a situation committee of the Treasury, has founded four successful companies and is you will change your child’s life, and not that required them to write, that confidence quickly evaporated. a regular speaker on leadership, CSR, innovation, and governance. only today but for many years to come.” “The other finding that is interesting is that the entrepreneurs felt they Can dyslexia, which has been categorised as a learning disability in were successful in their own business because they had control and did many quarters, really be a gift?  And if so, why isn’t more being done to what they were good at, finding other people to do what they were not nurture the uniquely individualistic talents of dyslexics? 6. Dr. Julie logan: researching the good at. That control is very difficult in a corporate environment.” “As a dyslexic, I can memorise a lot as I know reading the text again will link between entrepreneurship and take me too long. This has been a very effective skill for the boardroom. dyslexia ZENNA AtKINs, managing director of Zail, a start-up providing Dyslexia is still a hindrance to me in some ways – spell check, for instance, consultancy and delivery in education and health, remembers that as a is useless to a dyslexic, but I’ve learned early on in life to find my way schoolgirl she often missed when she clapped and wasn’t very good at around barriers,” Atkins says. reading or writing. Atkins only learned to read at 12, left school with a Indeed, while dyslexics can find it tough going in conventional schools, single O-level, turned entrepreneur at 16 and went on to be chairwoman they often flourish outside of regimented academic environments. of the UK schools inspection authority, Ofsted. Nineteen-year-old chocolate entrepreneur Louis Barnett (see box) Her dyslexia diagnosis came later in life, but her mother never doubted remembers the “massive relief ” he felt when his dyslexia was diagnosed. her intelligence. Atkins says that was responsible for her robust self “I always found school difficult and didn’t enjoy it,” he says. “I have confidence. “I was one of the first people to get an educational statement dyslexia, dyspraxia, dyscalculia and short-term memory loss. I owe all for dyslexia in the UK; until then schools did not recognise if you were my success to those so-called liabilities. Dyslexia teaches you problem 6 dyslexic,” she recounts. solving, to be an innovator, to think of products that no one has tasted 058
  • 52. 11. Jamie oliver, celebrity chef2. bill gates, gatesfoundation.org What is chokolit success Louis Barnett is a 19-year-old entrepreneur, who became the youngest dyslexia? supplier of supermarkets Sainsbury’s and Waitrose at the age of 14. At 11, Barnett left school because of learning difficulties and was later diagnosed with dyslexia. dyslexia comes from the Greek for His parents continued homeschooling and he became a certified “difficulty with words”. dyslexics are chocolatier and founded Chokolit (named thus because that was how challenged when it comes to reading, he spelled chocolate due to his dyslexia). Today, Barnett is also a brand spelling, writing and numeracy, or all of ambassador for the British dyslexia Association. 2 these. dyslexia does not reflect the individual’s intelligence; it is often before. Dyslexia also accelerates certain thought processes; for instance are adults. Both parents and teachers misconstrue the signs when hereditary and a life-long condition that when I want to learn about something, I can pick it up much faster than dyslexic children cannot cope with regular academic workloads, become cannot be cured, but can be managed. my peers. unhappy, introverted or disruptive. Common signs of dyslexia in school- “For me, dyslexia is not a challenge any more as I now have employees “Children with mild to severe dyslexia should be mainstreamed,” going children: to take care of things. I have to do things in a slightly different way – I use Singhal says. “Children should not be made to feel different or abnormal n difficulty in reading single words, not a Dictaphone when required to give instructions to my staff.” because of their literacy skills. The biggest mistake that parents and surrounded by other words. Dyslexia can vary from mild to severe, hence many dyslexics fly under teachers can make in dealing with dyslexic children is to label them lazy n Slow to learn the connection between the radar and may only know years later when their own children face or stupid.” letters and sounds. the same difficulties in school, but the price that a society pays for not Dr Logan speaks of the enormous waste in human capital when n Confuses small words and rhyming recognising dyslexia is quite high. dyslexia is not understood. “It is deeply saddening that so many bright words, such as cat and bat, goes and people are not working because they feel worthless. A situation made does. A 1996 stUDY by the UK’s National Probation Service found worse now by the recession – it’s going to be even harder to get or keep a n Consistently makes reading and that more than half the prisoners in London exhibited signs of dyslexia, job if you’re dyslexic,” she says.  spelling errors, such as letter reversals and the numbers are somewhat similar among juvenile offenders. “In order to keep up in the workplace, dyslexics have to put in so many (d for b), and inversions (m and w, u Educationist Anita Singhal, regional tutor for the Hornsby International hours that they burnout and feel depression. It’s very important that not and n). Distance Learning Course and associate member of the British Dyslexia only business be educated about what is happening, but the dyslexic n Trouble learning the alphabet, Association, stresses the importance of early and appropriate intervention. knows about what can happen – a mentor can do that. numbers, days of the week, colours, “Today, there is definitely more awareness and schools are doing more “In terms of the education system, it is really geared to the left brain, shapes, how to spell and write his or to identify students with learning difficulties. However, it’s far from which is why it is so difficult for dyslexics [many entrepreneurial people her name. satisfactory. Schools still do not have adequate infrastructure to cope who are really right-brained]. We need to bring a lot more right-brained, n Slow in developing fine motor skills, with children with learning difficulties,” Singhal says. practical activities into our education curriculum and allow people to compared to peers. In reality, a majority of dyslexics can remain undiagnosed until they shine in different ways.” 059
  • 53. A N A P P YM E D I U M APPS dEvELoPMENT HAS BALLooNEd INTo A MULTI-BILLIoN doLLAr INdUSTry IN jUST A FEW SHorT yEArS. oUr HUNGEr For THESE TASTy ByTES IS GroWING, ProvIdING oPPorTUNITIES For GAMES INvENTorS, NEWSPAPEr TyCooNS ANd ENTrEPrENEUrS. wrIttEN bY rIchArD wArrEN060
  • 54. tecHnologyapple’s iphone and ipad have revolutionised the apps industry. CoUrTESy oF APPLE IN December last year, an author in the United States published a piece of non-fiction for Apple’s iPad tablet computer. It was the first book The proliferation of apps has been sudden. In July 2008, only 500 were available from Apple’s App Store, now it has 300,000. The number for in the world to appear as software, not hardback in its first edition. David non-Apple mobile devices has also grown rapidly and the overall apps Eagleman’s Why the Net Matters is part of a wider phenomenon impacting market will expand even faster over the next couple of years, analysts say. on our lives, because it is an app, one of hundreds of thousands to have The apps industry will be worth US$17.5 billion next year, a report become available for download over the past couple of years that allow us to published by research company GetJar forecasts. It says 50 billion carry out a growing number of daily activities on a smartphone or computer. applications will be downloaded by mobile phone users in 2012, a seven- An app is a piece of software that can be downloaded from an online fold increase on the seven billion downloaded in 2009. store, the biggest of which is the Apple App Store. Some apps, like maps The apps boom has occurred during the most acute global economic and calculators, are practical, while others, mainly games, are for fun. crisis since the Great Depression of the early 1930s, which makes its Some, like social networking sites, are a bit of both. rapid growth all the more remarkable. Whether the internet will save Social networking apps can be platforms for other apps. For example, civilisation as Eagleman argues in his iPad book is debatable, but the 250 million people play games on Facebook, making it the largest gaming contribution of apps like his to saving the United States economy is platform in the world. increasingly important. Some apps are free, some must be paid for. Paid apps can cost as little The state of California may follow many United States banks into as 99 cents, but prices are creeping up, especially following the launch bankruptcy, but Silicon Valley, its high-tech business community near of tablet computers – prices for some iPad apps touch US$14.99. The San Francisco, is booming, partly because it is at the heart of the multi- top five paid apps downloaded from Apple in 2010 were all games, with billion dollar global apps industry. Silicon Valley’s totem, Apple, is a huge Angry Birds taking the number one spot. The most popular free apps in beneficiary as its cut from each app sold at its store is 30 per cent. 2010 included Facebook, Angry Birds Lite, Words With Friends, Skype, and Apple’s dominant position among apps stores is challenged mainly by Tap Tap Revenge 3. US competitors, including Google’s Android Market, which has 70,000 061
  • 55. tecHnology xgAMEs APPs DEvEloPMENt hAsx xbEcoME AN EArlY 21st-cENtUrYx xgolD rUsh. NoN-ExIstENt INx x2007, socIAl gAMINg Is Nowx xworth Us$640 MIllIoNx xworlDwIDE AND wIll bE vAlUEDx xAt Us$1.5 MIllIoN IN 2014, xANAlYsts At scrEEN DIgEst forEcAst.x apps available for the Android smartphone. Research company Gartner forecasts Microsoft SharePoint’s business apps will be as popular as those on iPhone by 2015, when it will have 20,000 applications available. The United States dominates apps development. About two-thirds of apps sold by Apple are developed in the US, and most of the rest are created in Europe and Japan. China’s apps industry is developing and the country’s officials have urged their mobile telephone companies to co- operate with each other to match the success of US firms like Google and Apple in providing apps to Chinese consumers. Asia is the world’s biggest mobile app consumer, accounting for 37 per cent of downloads in 2009, according to GetJar. However, North American consumers spent the most money on apps, generating 50 per cent of apps revenue, in 2009. thE MIDDlE East’s apps market was slow to develop initially, but the pace of growth is quickening. Apps developed by and for the Middle East market include Etisalat’s Yellow Pages, which had 10,000 downloads after it was launched in spring 2010. AppsArabia, the Middle East’s first and only investment fund financing apps development in the region, launched its first app, Kalimat, a collaborative iPhone game, in December 2010. Games apps development has become an early 21st-century gold rush. Non-existent in 2007, social gaming is now worth US$640 million worldwide and will be valued at US$1.5 million in 2014, analysts at 1. apple’s iphone gave rise to a multi- Screen Digest forecast. billion dollar apps industry. The world’s largest games app maker is California’s three-year-old 2. Facebook co-founder mark Zynga, which is growing at a faster rate than Google did during its Zuckerberg, co-inventor of the formative years. Zynga has more than 215 million monthly active users game-changing social networking 1 playing its games, which include FarmVille, Mafia Wars and Café World. app.062
  • 56. 1 2 Most of the company’s competitors are from the US, although London- and newspapers. Faber and Faber, and Bloomsbury Book publishers based Playfish was a challenger before it was bought out by California’s produced their first ever iPad editions in time for the Christmas sales Electronic Arts in 2009. As a subsidiary, Playfish remains the world’s rush in 2010. Newspaper owners hope apps will help reverse declining second largest social gaming company. sales revenues. From The Times in Britain to The Daily Telegraph in More money will flow into the coffers of apps makers and sellers Australia, newspapers are producing apps for iPads that take readers to over the next couple of years. Revenue from European sales will rise their pay-to-view websites. from US$1.5 billion in 2009 to US$8.5 billion in 2012, forecasts GetJar. Alongside a rapid expansion in the number of apps is the growing Meanwhile, US sales revenue will more than treble from US$2.1 billion popularity of social networking sites, the biggest of which is still Facebook. in 2009 to US$6.7 billion in 2012, the company says. Launched in 2004, Facebook had more than 500 million active users by Apps are popular because they allow a smart phone or tablet user to do July 2010. Networking sites like this have developed rapidly in nations much more than make a phonecall. They can search the internet, send that are not seen as traditionally high tech. Indonesia has the second email, swap photos, read a book and carry out a multitude of other tasks. largest number of Facebook users after the United States. Twenty-four Moreover, apps possess a flexibility that non-digital media does not. For million Indonesians, 10 per cent of the country’s population, tag photos, example, Eagleman will send updated content of his iPad book direct to write wall postings and send messages to their friends on this site.1. Frontierville and treasure isle: two readers via the internet over the coming years. They may also discuss Eagleman’s book, and one or two may consider of the most popular apps. The popularity of applications is also helping traditional businesses. whether it could be turned into a computer game. The opportunities for2. bill gates, founder of microsoft. Publishers are using apps to boost the sales of books, magazines creating new apps appear endless. a donations include US$100 million to help Facebook co-founder Chris Hughes Skype provides free and low cost improve run-down schools in the United set up jumo in February last year as “a phone and video calls via the internet, States and he has signed the Giving Pledge, social network connecting individuals and and it has developed software that allows common a philanthropic scheme for billionaires initiated by Bill Gates and Warren Buffet, organisations who want to change the world”. Its news service brings visitors up to UNHCr refugee aid workers, who often work in remote, inaccessible locations, to cause which commits him to give away more than half of his US$7 billion fortune. Aside from providing Zuckerberg with the date on global health and poverty issues, and how projects aimed at alleviating these problems are progressing. communicate with loved ones back home. Twitter, the social networking and microblogging service has 175 million users Software entrepreneurs are among the means to accumulate great wealth to share Zoetica provides charities and social worldwide. Charities campaigning on issues world’s most soft hearted business people. with others, Facebook and other social enterprises with communications services. ranging from ending malaria to building The Bill and Melinda Gates Foundation has media sites are becoming a force for good Its social networking site, Zoetica Salon, is libraries have tweeted to raise funds from given US$24 billion in grants to anti-poverty in their own right, as a means of promoting an online community where charity workers fellow tweeters using its TwitPay platform to schemes since it was launched in 1994; causes, raising funds and providing can swap ideas, ask each other questions collect donations. Facebook co-founder Mark Zuckerberg’s discussion forums. and make new contacts. 063
  • 57. WHat doyou tHinKSTUdENTS dISCUSS WHETHEr SPorT CAN BE A PoSITIvEvEHICLE For SoCIo-ECoNoMIC dEvELoPMENTWHat do you tHinK??KNIHT UOY OD TAHWwrIttEN bY shAlAKA PArADKArloNDoN tourism agency,Visit London, puts the estimated additional teams compete for glory. The economic impact “Unfortunately, recent trends and events have grossly undermined sport’s contributiontourism revenues from the London 2012 of the tournament was to society. Parents question if children shouldOlympic Games at $2.4 billion over 10 years. not limited to the bank spend hours practicing on the field chasing an This has been regarded with some scepticism accounts of the players improbable dream, or instead devote their timeby tour operators who cite the example of on the field: from the to safer academic pursuits. Fiscally-challengedChina, where tourism was down both before construction workers who governments are putting athletic programmesand after the 2008 Beijing Olympics, according built the venues to the on the chopping block in the wake of deep cutsto data from the European Tour Operators scalpers who sold last-minute tickets at highly to public education. However, think of a worldAssociation (ETOA). It also added that in the inflated prices, everyone got their piece of the in which a young Roger Federer was forcedfive years prior to the Sydney 2000 Olympics, pie. All of this would have been impossible to study chemistry instead of being allowedAustralia’s and New Zealand’s tourism was without the existence of sport, a powerful to practice his game. Or one in which everygrowing at the same rate but Australia’s growth vehicle of socio-economic development. child graduated with an education deprivedlost ground significantly straight after the “The value of sport lies as much in the of the values that only sport can teach. AGames. before and after as in the game itself. While society without sport would be just like that There is no denying the fact that sporting only 11 players make it to a country’s education: incomplete.events bring a certain cachet to host cities. football team, every single person who ever vidur Sehgal graduated cum laude with aHowever, not all countries have learned to practiced to be among the chosen 11 has, Bachelor’s degree in Economics and Internationalmaximise the benefits – case in point being to some extent, imbibed the qualities of Studies from yale University, USA. originally fromIndia’s hosting of the Commonwealth Games sportsmanship, teamwork and commitment. India, he did his schooling from the The doonthat was mired by allegations of corruption. The handshake that follows even the most School in dehradun. He is currently working inAccording to a report, delays, administrative hotly contested game demonstrates that Washington, dC at the Analysis Group, a leadinginefficiency and wasteful spending cost the despite our differences, we can be one. On the economic, financial and strategy consulting firm.government $355 million. However, the Games economic front too, sport can transform. Thedid succeed in creating an infrastructure 2008 Olympics heralded China’s arrival on the The sportsthat will engender a culture of sports among world economic stage. The 2022 Soccer World industry continuesschoolchildren, the benefits of which cannot be Cup will provide a fillip to the Qatari economy to grow outside fields 1. King Fahd Stadium in riyadh,quantified. through the influx of tourists from across the and stadia. Due to venue of many world-class events. Sports and sporting events have served as world. History is dotted with remarkable rags- the influx of money, 2. the international rugby boardan engine for growth in many disadvantaged to-riches stories of personal accomplishment. sports organisations are invested $247 million in rugby fromsocieties. We asked our panel to discuss what Usain Bolt, the son of the owners of a mom- expected to contribute 2009 to 2012.value sports can bring to a society. and-pop grocery store, achieved immortal to the community while 3. large-scale football projects have fame and success by becoming the fastest man sportsperson are expected to be role models. created jobs and housing in poor The rollercoaster of a tournament on earth. While sport may not be as impactful From a young age, professional players are now districts. that was the 2011 Cricket World on people’s economic conditions as, say, large- receiving an all-round education where they 4. cricket has enriched many playersCup brought together people of different scale industrialisation, it offers many that one are groomed and nurtured to be model citizens in developing countries.nationalities, cultures, religions and even invaluable opportunity to rise way above one’s and athletes. The money invested in youth 5. the cambridge university rowingconvinced the Prime Ministers of dueling station solely through grit and determination, development provides previously inaccessible team, likened to the best businessnations to sit side-by-side and watch their and that alone makes sport impactful enough. opportunities for a better future to families teams in the world.064
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  • 59. WHat doyou tHinKfrom poor and underprivileged backgrounds. allows for the government and organisations to since athletes in such games are not rewardedSport has become a viable career allowing spread awareness through campaigns ranging consistently. The events themselves do notpeople to pursue their passion professionally. from health, employment to education. always provide positive social, cultural, and “Large-scale projects such as the Football for “Herein lies the fruit of socio-economic economic paybacks to the participating teamsHope festival in South Africa and Arsenal FC development. On the flip side of increasing or nations. As such, events of this kind shouldcreating 2,500 new jobs and 2,500 affordable development and involvement of sports, if an not be considered as a steady and trustedhomes in North London illustrates how ordinary boy or girl were to make it through source of income. However, I do believe suchmoney in sports can have a positive impact and get selected to play the sport at a national events often give a boost to the reputation of aon people’s lives. In India, the rich Board for or international level, he or she is immediately nation and its citizens.Cricket Control of India (BCCI) has donated lifted from the realm of the private to that “Nelson Mandela said: ‘After climbing amoney for promotion of football, a previously of the public domain. They are likened to great hill, one only finds that there are manyunderdeveloped sport. These are just a few of the gods, which is mostly the case in developing more hills to climb.’ I would encourage youngmany examples that can be seen on a daily basis. countries, as people are easily swayed by the people worldwide to apply the greatness of “The sports industry, now more than prestige and status of others so that they can Nelson Mandela, by pursuing sports as a hobbyever, needs to re-evaluate the importance forget about the difficulties of their own life. and developing other interests as professions.”of managing money responsibly and “Reaching such a high level always has pitfalls. Sultan al-Saif is a Saudi senior at the Universityunderstanding the effects of the globalised However, if one boy or girl can make it, then so of denver and majoring in finance. He is also aeconomy. Although a downturn in any of the can the rest. This is the principle followed by all, Microsoft office Specialist (MoS).fundamental industries has an adverse affect forgetting the fact that only a handful of playerson sport, the money generated from sports are selected to be on the team. The question pops Only in thethrough broadcasting, sponsorship deals and up: is it worth it? In my opinion, in the case of world of sportprize money is increasing exponentially even sports, where skill and talent are not the only can stars be made outthrough these financially hard times. factors involved in one’s selection and added of the blue specifically “On the downside, the money used in sport to the shelf life of the professional period of a from disadvantagedtoday is mostly raised on credit. The English sportsman, perhaps, it is not worth it. backgrounds. However,football team Portsmouth FC is just one of the “If more people dream about finding the sport as a profession isclubs enduring financial turmoil and might fall cure for cancer rather than being the next neither economically norinto serious financial difficulties because of over- David Beckham or Sachin Tendulkar, not only professionally secure; as sportspersons age,extending themselves. will the future of their own life and family be they gradually start losing opportunities due to “The social costs of sports arise from fiercer secured, but also the future of the world.” their declining abilities, consequently limitingcompetition and higher expectations that lead Sagarika milind gujar is an international earnings. It makes for economically vulnerableto extreme pressure on and off the field. Doug student from India at Seton Hall University in stars, especially those who neglected goodBarron [golf] for performance enhancing New jersey, USA. Currently a sophomore at the education for sports. I think anydrugs and Robert Enke [football] committing Whitehead School, she is majoring in diplomacy sportsperson should have a back-up plansuicide are just the more recent examples. No and International relations with honours. where another source of income, when asport is immune; however, the worst hit is sporting career reaches an end.athletics, where the list is endless. Sports give “It is certain that hosting countries of sometaha Dalal is an Indian postgraduate student of participants and sports events benefit in many ways: openingsports administration at the International Academy fans enjoyment and often doors for tourism, business and investment. Yetof Sports Science and Technology, Lausanne. He an opportunity to set the cost of hosting such an event can be muchearned his Bachelors in computer engineering and aside their disadvantages. more than the revenue earned from it. “Bigis currently pursuing his MSA (Master of Advanced In addition, sports can achievements on the sports field don’t necessarilyStudies) in sports administration and technology. provide economic benefits translate into economic benefits. The Brazilian to participants and their national football team is one of the best in the The United communities. I believe that for some who choose world, yet Brazil remains a developing country. Nations considers sports as a career, it not only can improve their “Nowadays, sports are an essential part ofsport to be a healthy personal financial situation, but also have a our daily life, thanks to the media has beenand potential means positive impact on their stakeholders, such as advertising for it until this was achieved.for implementing the families, schools, and nations. “However, sports whether being a professionMillennium Development “It is true that the actions of people or a hobby, watched or practiced, should beGoals, particularly in the determine their own success and the success balanced out with other life essential anddeveloping world. The very of their individual nations. That being said, not come on the way of gaining a reasonablenature and goal of sport is to overcome the athletes should not limit pursuits to their level of education and achieving a career andvarious segregations in the community and sports alone. They should aspire to be a secure source of income. Sports cannot becan be summed up in one word: participation. educated because education is an investment taken as a main source of income, whether for “Participation of not only the few that can be used at any circumstance or age. a person or an entire nation.”members of the team but participation of “The Olympics and Commonwealth Games Deema alomar is a Saudi student at thethe local community, city, state and country. bring many benefits to hosting countries. University of Colorado at Boulder, majoring inParticipation and involvement of the masses However, such benefits may be overrated, computer science with a minor in religious studies.066
  • 60. proFile has received an admission letter or valid student ID can post their needs at Qifang. Lenders (including banks, companies, non-government organisation, non-profit organisations, philanthropists and individuals) then select whom they want to assist from online listings. The company is based on the rural credit cooperative model in China, which is a common way for students to take out loans from their own local community, yet has taken the concept national so that students can find lenders anywhere in China. Launched in August 2007, Qifang has brokered some 3,000 loans on its site, Chin says. Partnering with established universities in China, Qifang sends the loan directly to the university, which has built trust in the process. “Qifang aims to target the population of high school students for whom it wouldn’t even occur that attending college could be a option,” Chin says. thE 35-YEAr-olD Chin, who spent time teaching maths in New York, worked on Wall Street prior to joining several Silicon Valley startups, but in 2004 he decided to move to China. “Seeing so many young Chineseloan ranger people aspire for education that they can’t always afford was a key catalyst,” he recalls. “But we were also inspired by concepts and innovators fromwrIttEN bY lIsA vINcENtI other markets like Nobel Laureate and Grameen Bank founder MuhammadCALvIN CHIN IS A MArKET-orIENTEd EdUCATIoN ENTrEPrENEUr WHoSE Yunus, Kiva.org and Prosper.com. These inspirations require us to makeorGANISATIoN qIFANG HAS MAdE TErTIAry EdUCATIoN EASILy ACCESSIBLE smart choices about what might andTo MANy CHINESE STUdENTS. might not apply to our situation, to our market, to our company, but theythE NUMbEr of student door to higher learning for many lower- assistance to go to college with eager have been an important way for us toenrollments in China’s 2,000 income families. lenders, a business he hopes will prove a leverage the creativity and innovationuniversities and colleges has surged In fact, some 50 million Chinese sustainable model. Chin estimates that from other places to help us build asince the nation decided to transform cannot afford college and as the nation 25 million Chinese students now pay better service and company.its higher education system more than continues to revamp its system to $400 to $2,200 a year in college tuition. “People and companies are hungrya decade ago, with gross enrollments a more market-driven model, the If 40 per cent of eligible college students for new models that go beyond socialballooning to more than 20 million last student-loan system remains largely (only about 15 per cent of students in responsibility to include changingyear from just 3.4 million in 1998. underdeveloped. Yet recently, market- China enroll in college today) were the world for the better in their core To support such expansion, part of its minded entrepreneurs have begun able to finance their education through operations. Because the growth ofoverall efforts to reform its education stepping up and Calvin Chin, the CEO loans, this could add up to $10 billion our service directly translates to moresystem, the Chinese government of Shanghai-based Qifang, is a pioneer in loans annually, Qifang states. students being able to stay in school,adopted a more-Westernised approach in the field. An online p2p lending service, it we consider ourselves part of a newto tertiary schooling and began gives students the means to find friends, breed of social ventures who recogniseallowing colleges and universities to hE DEvEloPED a technology- employers, agencies or philanthropists social value and impact along withcharge tuition fees, a move that helped driven peer-to-peer (p2p) system that willing to help fund their education. our profitability and other traditionalfund the growing system yet shut the connects students who need financial Any Chinese undergraduate who business metrics.” 069
  • 61. an oversized mirror ball rotates at W london-leicester Square070
  • 62. travelthE vIEwfroM thE toPHoTELIErS AroUNd THE WorLd ArE BrEATHING A SIGH oF rELIEF AS ToUrISTS IGNorETHE FINANCIAL CrISIS ANd HEAd oUT oN HoLIdAy. AS LUxUry ProPErTy dEvELoPErSCoNTINUE To ExPANd THEIr GLoBAL rEACH, HErE’S A GLIMPSE oF WHAT’S To CoME.wrIttEN bY lIsA vINcENtIhotElIErs around the world are feelinga bit more confident these days as guests are filling up more and more beginning of 2011, it opened its second UAE property in Dubai’s prestigious DIFC, followed by another in Toronto. Most recently, itonce-empty rooms. The note of optimism follows on the heels of a strong opened the world’s tallest hotel in Kowloon, The Ritz-Carlton Hong Kong.comeback in international tourism last year – and things are already Located in the 484 metre-high International Commerce Centre (ICC),beginning to look up for 2011, according to the UN’s World Tourism the 312-room hotel, with a lobby 425 metres from the ground, occupiesOrganisation (WTO). the top floors of the ICC designed by Kohn Pedersen Fox Associates in International tourist arrivals jumped by seven per cent to 935 million association with Wong and Ouyang. A spokesperson for Ritz-Carltonlast year, following a four per cent drop in 2009 (the year hardest hit by confirmed that the chain expects to open two additional properties in thethe global economic crisis), with most destinations worldwide recording Middle East before the end of this year.increases in visitors large enough to offset the losses they had suffered in There is plenty of excitement this year as a slew of highly anticipatedrecent years, the WTO states. Tourism is expected to continue to grow new hotels open and completed renovations come online. Renovations ofthis year, albeit at a more moderate pace of between four per cent and five landmark buildings such as the St Pancras, London; Le Royal Monceau,per cent, but the hotel industry still isn’t fully out of the woods. Paris; and the Shanghai Club, Shanghai, are giving travellers something Boosted by improved economic conditions worldwide, international to dream about.tourism has recovered faster than expected from the financial crisis. As are a slew of upscale new developments around the world. BulgariDespite the relative sag in Europe (up just three per cent), strong growth Hotels & Resort – which currently has properties in Milan and Bali,in the Asian (more than 13 per cent) and the Americas (up eight per recently signed a deal with Ritz-Carlton to open a third hotel in 2012cent) vaulted the worldwide number of tourist arrivals to 935 million, 22 in the Knightsbridge, London. Contemporary luxury brand Conradmillion more than the pre-crisis peak of 2008. Hotels & Resorts, which currently operates 15 hotels across the world, Hotel rooms may be filling up again, but new hotel openings continue announced a bold expansion plan to double its portfolio in the nextto flounder. The recovery remains bumpy and declines in new hotel several years. Four new locations in the Algarve, Portugal; Koh Samui,developments worldwide are anticipated in the foreseeable future. Thailand; Dubai; and New York are slated to open this year and 14 moreAccording to global real estate consultancy Lodging Econometrics, are in the pipeline.new hotel openings in 2011 and 2012 will continue to dwindle, with W Hotels will continue to showcase its design-oriented approach with the1,559 hotels expected to open in 2011, down from 2,148 in 2010, with a opening of six new establishments this year. It recently opened the W Londonfurther contraction to openings 1,411 forecast for 2012. The US, Europe alongside hotels in Taipei, Bali and St Petersburg, with future projects in theand the Middle East have all proceeded sluggishly, with new project works for Paris, Guangzhou, Shanghai, Abu Dhabi, Bangkok, and Athens.announcements continuing to shrink from peak-levels three years ago. Still, many of the world’s most prestigious hotel brands are not giving up hotEl roUND UP:on their efforts to expand, with much of the activity centered in emerging the ritZ-carlton Shanghai, puDongmarkets, such as China, India and Brazil. China led the world in new Parent Company: ritz-Carlton Hotel Companyhotel construction and is a driving force of the industry’s development, Total Properties: 75notes the US-based Lodging Econometrics. With a staggering 1,182 Total openings in 2011: Five, to-date three including Toronto Hong Kong andprojects in the pipeline, the country opened the doors to 900 hotels last dubai, two more scheduled in the Middle East.year and expects to introduce another 601 in the next 12 months. In the Pipeline: More than 30 hotel and residential projects Luxury brand Ritz-Carlton continues to blaze forth with its expansion With a luxurious art deco interior with a contemporary twist designedplans this year, adding numerous properties to its portfolio. At the by Richard Farnell and panoramic views over the Huangpu River and 071
  • 63. travel 1the historic Bund, the new Ritz-Carlton Shanghai, Pudong, has wastedno time in making its presence felt in China’s most dynamic and fastest-growing city. Located in Shanghai’s sophisticated Lujiazui central business district, inthe IFC South Tower, the 285-room hotel recently won the Robb ReportLifestyle award as the ‘Best City Hotel- Best of the Best 2010’. The hotel boasts numerous popular restaurants including Flair, thecity’s highest alfresco dining venue, and Scena, both designed by Japanese 2design firm Super Potato, as well as the Chinese fine dining restaurant JinXuan, designed by Steve Leung. The hotel is proving to be popular with of vibrant patterns and vivid colour to imbue the hotel with local flavour. 1. hotel missoni Kuwaitvisiting gourmands and China’s growing number of wealthy trendsetters. The 169 sea-facing room property is part of a hotel trend that began in 2. the ritz-carlton, Shanghai pudong The five-star business hotel is the epitome of style and luxury from the the mid-Noughties in which prominent couturiers, such as Moschino,marble floors to the rich silk drapes. The slipper-shaped designer copper Armani and Versace, extended their brands into the hotel segment.bathtubs in the guestrooms are much talked about, as is the ESPA spa and Missoni Kuwait’s amenities include a 1,500sq/m Six Senses Spa, agym on the 55th floor. cutting-edge fitness facility, yoga studio, separate ladies gym, sauna, Under the same roof is the prestigious new all-designer IFC Mall steam room and a swimming pool overlooking the Gulf.featuring a cult Apple Store and the best of the word’s shopping, a worthycomplement to the overall luxury experience that is the Ritz-Carlton W lonDon – leiceSter SQuareShanghai, Pudong. Parent Company: Starwood Hotels & resorts The company also manages The Portman Ritz-Carlton across the river Total Properties: 40in Nanjing, the bustling older part of the city. It plans to open a new Total openings in 2011: Fiveproperty in Macau, China soon and two more in the Middle East before In the Pipeline: 15the end of this year. The much-awaited opening of W Hotel’s latest location in London is the 40th stylish property to be added to the company’s holdings. Designedhotel miSSoni KuWait by London architects Jestico + Whiles and Dutch interior design agencyParent Company: rezidor Hotel Group Concrete, the 10-storey W London, hopes to cash in on the brand’s spiritTotal Properties: Two of urban cool, first ushered in 12 years ago when the W unveiled its firstIn the Pipeline: Missoni oman/Antalya, Turkey; Ilja de Cajaiba, Brazil location, designed by David Rockwell, in New York.The iconic Italian fashion-house Missoni opened the doors of its first The London location features: five “Fantastic Suites”, two “Marvellous”hotel in June 2009 in Edinburgh. Now it has rolled out a second: the Hotel ones, three Spa Suites, seven Studio Suites, three Wow Suites and oneMissoni Kuwait, part of the Symphony Centre, a boutique emporium E-Wow Suite, all appointed with custom-made furnishings and accentslocated in the shopping district of Kuwait City. unique to London. The hotel also houses a signature spa, fitness facility, a Missoni creative director Rosita Missoni combined her signature use world-class destination restaurant and the W Lounge.072
  • 64. 1 3 5 palace on Avenue Hoche, near the Arc de Triomphe and Champs- Elysees, in addition to featuring 149 rooms and suites; two restaurants (La Cuisine, the French fine-dining restaurant and Il Carpaccio, an Italian gastronomic eatery); the Spa My Blend by Clarins, which boasts an impressive art collection; and La Librarie des Arts bookstore, with a collection of 700 books and collectibles dedicated to contemporary art, design and architecture, a well-appointed screening room and art gallery. Four SeaSonS hotel, guangZhou Parent Company: Four Seasons Hotel 4 Total Properties: 84 Total openings in 2011: Six monDrian Soho, nyc In the Pipeline: Eight (China only) Parent Company: Morgans Hotel Group Four Seasons Hotels has made China its top priority: the Guangzhou 2 Total Properties: Three property, the company’s fourth in the country, is coming online to receive Total openings in 2011: one guests by this summer. Part of a soaring, tapering triangular tower designed1. mondrian Soho, nyc In the Pipeline: doha, qatar by HBA/Hirsch Bedner Associates, the Four Seasons will occupy the top-2. le royal monceau raffles paris Credited as being the first boutique hotel, Morgans in New York third of the building. The privately held company, which entered the Chinese3. St pancras renaissance hotel revolutionised the hospitality industry in 1984, introducing the world to a market in 2002, plans to add another eight hotels in this surging market.4. W london leicester more intimate, personal setting. Since then, the company has developed a5. Four Seasons guangzhou series of boutique brands throughout the US and Central America, and the St pancraS renaiSSance hotel, lonDon opening of imaginative Mondrian SoHo is the third to carry the Mondrian Parent Company: Marriott International label. The hotel features a modern sustainable seafood restaurant, Imperial Total Properties: 145 No. Nine, by chef Sam Talbot; Mister H, an intimate downtown nightlife Total openings in 2011: Three concept; and 270 guest rooms. Looking ahead, Morgans plans to export its In the Pipeline: 17 concept with a Mondrian Doha, Qatar, and a Delano Hotel in Turkey. Known for its collection of original, architectural gems, Renaissance Hotels recently added a number of new holdings to its global collection, le royal monceau, raFFleS pariS including the Renaissance Malmo hotel in Sweden, Renaissance Bangkok Parent Company: Fairmont raffles Hotels International Ratchaprasong Hotel and the Renaissance Beijing Capital Hotel. Yet it has Total Properties: Eight been the group’s massive renovation of the St Pancras in London that has Total openings in 2011: Three been most anticipated. After more than 10 years of painstaking effort, the In the Pipeline: Five landmark St Pancras’ long-awaited opening is finally nearing completion. Paris is still buzzing from the recent re-opening of the 1930s legend The 245-room hotel, a superb example of high Victorian Gothic architecture, Le Royal Monceau, which was completely transformed by renowned consists of the historic St Pancras Chambers, which will house 38 elegant designer Philippe Starck. The two-year renovation of this elegant Parisian Victorian suites. 073
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  • 66. exHiBitionsoN of thE soIlProjECT 60 CoNTINUES To SHoWCASE SAUdI WorKS oF ArT To A dIvErSE AUdIENCE.ABdULLAH HAMAS, THE orIGINATor oF THE ‘FIGUrATIvE ForMAL ABSTrACTIoN’ GENrEANd THE SECoNd ArTIST To TAKE PArT IN THE ProjECT, ExPLAINS HoW HIS HoMELANd’SLANdSCAPE HAS HEAvILy INFLUENCEd HIS WorK. wrIttEN bY shAlAKA PArADKArlAst YEAr, Saudi Arabia’s also be expanded to include a lecture a verdant corner of the Kingdom, with (where he now lives) for more thannewly formed Economic Cities series with artists’ talks, moderated a culture and landscape all of its own – 30 years, before turning into a fullAuthority (ECA) marked its by a curator or art expert. The ECA and knew since he was a child that all time artist. However, the scenes ofestablishment with the launch is mindful of incorporating culture he wanted to do was paint. his idyllic childhood continue toof an innovative new art scheme and creativity in the urban development be his muse even today; his art isthat showcases the very best in plans for King Abdullah Economic city, hE stUDIED at Riyadh’s Art inextricably tied to the soil of his nativecontemporary art from the Kingdom. with Project 60 representing the first of Education Institute, graduating in Saudi Arabia. Designed to support the several long-term plans to include other 1973. Then, in 1983, he chaired the “We have trees, water and cloudscultural development of Saudi cultural landmarks, such as museums arts committee at the Fine Arts & in Abha – these are precious in SaudiArabia’s economic cities, Project 60 and art centres. Culture Organisation in Jeddah Arabia. It’s a colourful province andinvites contemporary Saudi artists Jeddah-based Saudi artist Abdullah and enrolled in a course designed my heritage is a recurrent theme in myto lend their artwork – 60 pieces in Hamas is the second artist to participate for leading artists in Riyadh. work. Some of the themes I touch upontotal – to the new ECA offices in King in Project 60. He grew up in a small Hamas worked as an art teacher are nature in Asir, my hometown, theAbdullah Economic City for a three- village near Abha – a hilly city sited in in schools in Riyadh and Jeddah customs and traditions of Saudi Arabiamonth display. The ECA headquarters and some of the icons convey moreserved as a platform for Saudi art to abstract symbolic art,” Hamas says.be showcased to the diverse audience Hamas’ paintings are memorableof business and political figures for their use of colour and pattern. Inwho frequent the offices on a daily several paintings he depicts Abha’sbasis in addition to contributing to distinctive architecture and lifestyle –an innovative work environment for the stone-and-mud buildings that look likeECA employees. truncated pyramids, bejewelled women Project 60 also serves to highlight one wearing their sombrero-style hats andof the ECA’s most exciting initiatives, men in colourful traditional garb. His60/24/7, a service to make narrative style is folksy and charming,government and non-governmental with flattened perspectives and blocksservices available to residents and of bright colours. He describes it as anexpatriates, individuals or businesses, abstract figurative style, which harkswithin 60 minutes of their request, at back to the innocence of childhoodanytime of the day. when one drew as one saw. Preferring Going forward, there are more art to eschew political commentary, Hamasand cultural events planned under the says he strives to portray a distinctlyaegis of Project 60. There are plans to Saudi identity in the work that hetweak the present format and open creates.up Project 60 to group exhibitions “When children paint something(not limiting the showcase to one from nature, they do it in aartist at a time). The project would manner devoid of details. For example, 075
  • 67. a tree would simply be drawn as exhibitions in Saudi Arabia, Morocco, a rectangle of brown or beige and Paris, Jordan and Kuwait. green circle above,” he explains. “This “No one paid attention to my work is what attracted me to art. As such, I and I didn’t sell a single piece,” Hamas have developed my art in the genre of recalls. “However, I’ve come a long ‘figurative formal abstraction’.” way since then and have worked hard A self-taught artist, Hamas developed on fine tuning my skills and artistic his style through diligent drawing style to the point where my artwork is and, being a lifelong student of art, he readily recognised without it even being refined his craft by attending exhibitions, signed by me.” His style is indeed quite visiting museums, and being featured in distinctive; the geometric merges with the as many exhibitions as possible. realistic: vernacular architecture, people When he began over four decades and landscapes are rendered in triangles, ago, Hamas faced numerous challenges. rectangles, squares, and circles. At his first solo exhibition in Riyadh So what would he describe as his in 1974, half the paintings on show greatest strengths as an artist? “From were in an abstract figurative style my first exhibition presented in 1974, and the other half realistic. This was I developed my signature formal the first time abstract paintings had abstraction technique. I continue to gone on show in Saudi Arabia and develop and improve my technique in the unfamiliar style had few takers step with the evolution of art at the local, among an audience brought up on a regional and global levels,” Hamas says. diet of realistic and classical painting. “I have distinguished myself as mastering Since then, he has held several solo the use of colour directly on the surface of076
  • 68. exHiBitionthe painting without flaws. large-scale murals for public spaces; have been exposed to the world of role model for a younger generation “I was inspired to work so including a 30m-long painting that he contemporary art in Saudi Arabia by of artists. “I’m very thankful for myprominently with colour due to sent in for the Cairo Biennale in 1995, visiting exhibitions and broadening position as a successful Saudi artist,the inspiration I drew from living in asking the organising committee to their horizons through the internet. as my works are collected locally anda small village near Abha in south- divide it as it thought appropriate. These developments have seen many internationally. Also, I have been ablewestern Saudi Arabia. The region is artists make a name for themselves to serve as a role model to aspiringknown for its mild climate, fertile thE contemporary art scene in Saudi on the international art scene and art students, as they still seek out mylandscape and beautiful countryside, Arabia today is quite different from Saudi Arabia will have its first teaching programme at the universityand this inspiration turned into a when Hamas started painting four official participation at the Venice and I always welcome students to myfull-time occupation as I am singularly decades ago. “It has developed rapidly Biennale in 2011, in addition to a studio,” he says.dedicated to my work.” with the development and evolution of number of other exhibitions elsewhere.” “Painting is like oxygen to me and Hamas has also mastered larger specialised arts and culture institutes,” As a successful artist in today’s I consider art to be an immeasurableformats, having executed several he says. “Young men and women Saudi Arabia, Hamas sees himself as a pleasure.” 077
  • 69. style gold is the order of day. think anywhere in the spectrum of costume jewellery with a graphic, oversized cuff bracelet by clash to a statement- making pianegonda bracelet in yellow gold. bEYoND thE boArDrooM SPrING IS HErE, GIvING yoU THE PErFECT ExCUSE To rEvIvE yoUr WorK WArdroBE WITH A ToUCH oF rELAxEd, UPBEAT a nude colour palette FEMININITy ANd MUCH-NEEdEd SPLASH oF CoLoUr. ExPLorE from top-to-toe is the ideal starting point for a no-fuss THESE KEy TrENdS To STEP INTo THE oFFICE, ANd THE NEW work outfit. Fusing sharp SEASoN, IN STyLE. Savile row tailoring with wrIttEN bY sAMIA QAIYUM functional luxury, this Stella mccartney suit pairs a straight-cut jacket with high-waisted trousers in usher in the warm, sunny lightweight fabrics. days ahead with a subtle scentbalenciaga bags are globally for spring. Flora eau Fraiche byrenowned as the go-to choice for gucci is a fresh and sparklingcutting edge fashionistas, celebrities composition of citrusy top notes, a embrace your inner fashion magpie with a feather-lightand jet set women alike. opt for one velvety rose heart, and evocative silk scarf by pucci, complete with colour, embellishmentthat is roomy, colourful and loaded sandalwood and patchouli base. and the brand’s signature bold print. throw it on to injectwith texture, likethe über-chic croc a carefree dose of 1970’s sensibility into your look.papier tote. coveted by women the world over, footwear from the ultra-luxe Jimmy choo brand is the epitome of glamour and elegance. pick a gravity-defying peep-toe pair in metallic patent or snake print leather to take you stylishly from day to night with ease.078
  • 70. the easiest way to jumpstart your springtime look is to combine bright colours with classic masculine stripes. one of the top names in men’s designer wear, eton offers an exceptional range of hand enamelled, uniquely wrinkle-free cotton shirts engraved and full of life, the and silk ties to ensure you Duchamp london cufflinks look immaculate all day collection will satiate your hunger long. for colour in your work wardrobe. inspired by the geometrical motifs and bold colours of the 1930’s art Deco period, the harlequin pair will add a fun, contemporary feel to formalwear. soME lIKE It hAUtE Trends from fashion capitals across the rising temperatures the world dictate how you can look ahead call for a fragrance sharp this season despite breaking that is steeped in explosive freshness. Water and fire away from the traditional – vibrant collide unpredictably in aqua accents paired discreetly with clean, Fahrenheit, which opens with ultra-groomed styles have struck a lively citruses followed by an intense blossom of violet. chord with fashion aficionados due to their suitability for work or play. business travel dominating the agenda in the upcoming months? invest in an iconic piece of luggage by louis vuitton – this spacious and elegant carryall is Stay one stepbusiness or pleasure? cabin-sized, made with supple debossed ahead of the gameeither way, a slim-cut monogram révélation leather by sporting somemoschino suit from and sure to stand the test immaculate italianthe uomo collection of time. craftsmanshipcombines elements on your feet.of rock, comics and guaranteed to gopop to take you there with anything inwith panache. a you already own,charcoal grey backdrop these black leatherremains timeless, lace-ups by Sergiocomplementing bright rossi embodypiping and youthful understated luxuryhints of colour peeking at its finest.through. 079
  • 71. style the decadent new c-class by mercedes-benz will rapidly find its way to the top of your wishlist for spring. lower fuel consumption, nine new driving assistance systems and a host of new-generation telematics have been supplemented by a strikingly designed exterior that will make your arrival unmistakable from a distance.the world’s thinnest notebook, macbook air is the verydefinition of ultra-portable, weighing an unprecedented1.3kg. its stunning 13.3in, backlit widescreen display,full-size keyboard and built-in camera for videoconferencing render your location irrelevant when thereare decisions to be made.pick your favourite room, find apower outlet and choose a musicalgenre of your choice. now add thepowerful new beoSound 8 speaker dockto discover the big style and even biggersound performance that has made bang obJEcts& olufsen one of the most sought-afternames in home audio. of DEsIrE Ward off chaos with office supplies There’s nothing but good news for modern that blur the line professionals. The future is designed with between fashion and your business and lifestyle in mind, rife function. Quintessentially Scandinavian in design, with opportunities to maximise your daily orDning&reDa produces anin a fast-paced world productivity. Combining sleek, minimalist extensive range of premiumwhere things come and aesthetics with superior-quality performance, stationery products including diaries, albums, notebooks, desktopgo, mont blanc remains here’s a glimpse at the latest must-haves from accessories and more.a bastion of timelesselegance. celebrating the world’s most coveted brands.the musical genius Johnlennon, this special thinner, faster and lighter than its predecessor, the ipad 2 is packed withedition pen features a new features yet still delivers up to 10 hours of battery life. Stay connectedhandcrafted rhodium- with this wonder device that allows you to browse the web, send emails,plated 18K gold nib and exchange photos, watch videos, read e-books and so much more.is rounded off with aplatinum-plated plaque,engraved with thebeatle’s famous self-portrait.080
  • 72. Shake off the midweek blues with the contemporary petrol morini sofa by boconcept. rich in detail and comfort, it features extra wide seating units and light, thin legs that accentuate its smooth, sleek design. oN thE brIght sIDE Gone are the days of stark office spaces furnished with sterile desks and merely functional chairs. Today, your workspace needs to dress to impress, just as you do. Modern minimalistic furniture in warm, earthy tones accented with 1970s inspired accessories contributes to an air of cosmopolitan brighten up the vibe in your office in time for spring elegance, making even the most arduous workday with the addition of just a single accent. a table lamp full of pep and personality, such as the futuristic Soffionia table intended for the office an enjoyable one. in murano glass by roche bobois, will do the trick.need not be predictable and prosaic.Designed by the renowned Karimrashid for christofle, the limitededition KasKade side table is asculptural work of art, featuringstrips of metal layered in a spiral. outfit your workplace with a refreshing scent by using citrus fruits or tealight candles. they won’t steal focus when housed in the porcelain, peek-a-boo baby range by design duo massimiliano and Doriana Fuksas for alessi. take a few moments to escape to the cobbled streets of milan in the midst of your frenetic day. the new gaggia accademia espresso machine boasts a host of italian-style espressos options with just the touch of a button, leaving your caffeine cravings spoilt for choice. 081
  • 73. CoPyrIGHT © SoLUS4 Future tHinKing making Waves MAINE-BASEd ArCHITECTUrAL CoMPANy SoLUS4 HAS rEvEALEd AN ENErGy EFFICIENT vISIoN For A MArINE rESEArCH CENTrE IN BALI. wrIttEN bY stEvE hIll DEvAstAtIoN caused by the 2004 Indian translated to linear patterns, inform the shapes that cells, while the close-to-shore location allows for tidal/ Ocean earthquake and tsunami led to the launch of are integrated into the building form and result in current generators to serve the power requirements. an international design competition for a marine patterns that seem to be born of the sea. Rainwater collection and seawater conversion research centre in Bali. The 2,500sq/m structure was designed to be located systems would take care of domestic water And Solus4, an architectural company based in 150m offshore from Kuta Beach, and would feature requirements while deeper source seawater is Maine, took inspiration for their entry from the research labs, accommodation for scientists, seawater circulated through the skin for radiant cooling and structure of a tsunami wave, the shapes of which have pool, aquatic garden library and an auditorium. temperature control of the overall anthropomorphic been incorporated into its futuristic building form. Laboratories, a gym, bedrooms and the aquatic shape. Its design team sought to understand the wave garden would be located under the waterline of the Solus4 also felt that the unique shapes and dynamics and the resulting force patterns that are structure, which is intended to be totally energy programmatic requirements would serve as an generated as tsunami waves are created and radiate efficient. Large glass-based panels form the skin – both icon for scientific study and tourism in this part of out from an epicentre. The wave forces, when transparent and opaque as well as embedded with PV Indonesia. 083
  • 74. BooKs rEvIEws bY shAlAKA PArADKArCoUrTESy oF BING THoM ArCHITECTS With meeting rooms for small business owners, a performance space for the Surrey Symphony, wi-fi access, online collections, Facebook and twitter profiles, canada’s $36-million Surrey city centre library (designed by bing thom architects) is the new face of libraries, an environment-friendly hub for the whole community. oblIQUItY thE PowEr of PosItIvE thE fINE Art of sUccEss coNfEssIoNs of AN ArAbIc by John Kay DEvIANcE by Jamie anderson, INtErPrEtEr The central by richard pascale, Jorg reckhenrich and by leslie argument at the Jerry Sternin and martin Kupp mcloughlin heart of this book monique Sternin When it comes to business Having lived in the from renowned In this book, the authors gurus, damian Hirst, Arab world for over 50 economist john make a case for Madonna and Picasso seem years and taught Arabic Kay is that profits challenging the status quo a rather unorthodox choice. at several universities, and happiness through positive deviance This book attempts to bridge McLoughlin’s love of are the side effects (Pd). the yawning divide between Arabic in all its forms, its of aiming for Pd is founded on the the arts and business. nuances and subtleties, something else. principle that one person in a The authors have selected artists from the shines through in this memoir. The richest people are not the most community, working with the same resources renaissance to modern times, for the valuable Published by Motivate Publishing, this materialistic, the happiest are not those who as everyone else, has solved a problem that business lessons they can impart to today’s book is rich in detail and wry humour. chase happiness and the most profitable confounds others. Pd has helped alleviate businesses – companies can learn about Having interpreted for HM The queen and companies are not profit oriented. This seemingly intractable problems – be the power of strategic vision from pop star the British government from 1983-2004, is the concept of obliquity and Kay puts they staph infections in hospitals or infant Madonna, for instance, or about creating McLoughlin offers us a ringside view of the forth numerous examples from the world mortality in Pakistan’s highland Pashtun tribe. new markets from artist damien Hirst, who art of interpreting during the course of several of business, sports and arts to illustrate his The authors outline how Pd methodology sold $270 million of art in a single day at historic talks. There are many fascinating point. can be practised at the grassroots level in auction, in the midst of a recession. There are vignettes of the real personalities behind the Written in a lucid, engaging style, Kay disparate communities – by identifying the some fresh perspectives to be enjoyed here British and Arab leaders of the 1980s. An wears his erudition lightly, making this book solutions within their midst and getting the for those who count creativity as a critical interesting and enriching read for anyone accessible yet thought provoking. community to adapt these practices. skill. interested in Anglo-Arabian political relations. 085
  • 75. visionary wANgArI Maathai’s life story is an extraordinary example of the power of a simple idea. For this Kenyan Nobel Laureate, planting trees led to political activism and ultimately the Nobel Peace Prize in 2004, making her the only African woman to win the prestigious accolade so far. Maathai grew up in rural Kenya but won a scholarship to study in the United States. Returning to Kenya in the 1960s, she discovered the devastating effects of deforestation on the once-lush rural communities where she had spent her childhood. Women had to walk greater distances to fetch water and their children were malnourished as once-fertile farms turned to dust on account of soil erosion. Maathai thought the best solution was to plant trees – they would provide sustenance, arrest soil erosion and create new means of livelihood for an increasingly impoverished population. Thus was born the Green Belt Movement: a grassroots organisation that encouraged rural women to plant trees. the seeds of change A PLAN To HELP SAvE THE PEoPLE oF HEr NATIvE KENyA By PLANTING TrEES ACroSS THE dESTITUTE BUT oNCE FErTILE CoUNTry LEd To A NoBEL PEACE PrIZE For WANGArI MAATHAI. wrIttEN bY shAlAKA PArADKAr As her movement grew, empowering women across Kenya and uniting them into a sizeable political force, it came into conflict with Kenya’s then- dictatorial regime, headed by President Daniel arap Moi. Maathai was jailed, beaten and divorced by her politician husband for being such an outspoken critic of the regime. “It is the people who must save the environment. It is the people who must make their leaders change. And we cannot be intimidated. So we must stand up for what we believe in,” she said. When Moi was finally ousted and Kenya became a democracy in 2002, Maathai became a member of the new parliament and Assistant Minister of the Environment and Natural Resources. In 2004, she won the Nobel Peace Prize. Some criticised the fact that she had won a prize for planting trees. She responded in her Nobel speech: “Although initially the Green Belt Movement’s tree planting activities did not address issues of democracy and peace, it soon became clear that responsible governance of the environment was impossible without democratic space. Therefore, the tree became a symbol for the democratic struggle in Kenya.” Today, Maathai’s organisation has planted more than 35 million trees throughout Kenya. The Green Belt Movement also teaches women about indigenous foods, income generating activities, AIDS and self- empowerment. This sexagenarian environmentalist continues to be vocal about the issues PHoTo By MArTIN roWE she is passionate about. As she recently said: “We have a responsibility to protect the rights of generations, of all species, that cannot speak for themselves today. The global challenge of climate change requires that we ask no less of our leaders, or ourselves.”086