G8 G20

Summit
Muskoka 2010 G-8 Summit - June 25-26, 2010 G-20 Toronto Summit - June 26-27, 2010
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Leaders from around the world will gather in Canada in June, then in Korea in November of this

year to take part in the 2010 G-20 Summit meetings. Ever since the first G-20 Summit in Washington

DC, the G-20 has acted swiftly and effectively to overcome what many considered to be the worst

global crisis since the Great Depression. The G-20 has strengthened international cooperation and

led to closer collaboration, helping the world on the road to economic recovery. However, many chal-

lenges still lie ahead.

The Republic of Korea, as this year’s chair and host of the November 2010 G- 20 Summit, will

do its utmost to ensure that the global economy is placed on a path of recovery so that we achieve

strong, sustainable and balanced growth. The G-20, the premier international economic forum for the

developed and developing countries, will lead this effort. The Korean government and its people will

do its best to ensure a successful G-20 Summit in Seoul.

This unprecedented global crisis still presents challenges but the world

has also been presented with a unique and historic opportunity. What

we do today and how we overcome this crisis will determine our

future success. The 2010 G-20 will help us fulfill our promise of a

brighter tomorrow.

We are looking forward to our June meetings in Canada, then to

welcoming the G-20 to Korea in November.

Thank you.

President of the Republic of Korea, Lee Myung-bak

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On behalf of all Torontonians, I extend a warm welcome to the leaders of nations and the thousands of
delegates and media visiting Toronto on June 26 and 27 for the G-20 Summit.

As one of the most diverse cities in the world, Toronto is uniquely positioned to host the G-20. More than
half our residents were born outside of Canada so our G-20 visitors will see themselves reflected in the faces of
Torontonians in our neighbourhoods, and in the businesses that serve them. It’s a key reason why millions of tourists
visit this city every year, and companies from around the globe choose Toronto as a place to do business.

This is a city that celebrates and embraces diversity to create a city that is liveable, prosperous and pro-
vides opportunity for all.

We look forward to welcoming the world.

Signed,

Mayor David Miller

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On behalf of the residents of Huntsville, Ontario, Canada, I would like to ex-

tend warm greetings and best wishes to all those visitors who will visit our community
for the 2010 G-8 Summit.

Huntsville is tremendously honored to have been chosen by Prime Minister

Harper to host this year’s G-8 Summit. As the people of Huntsville can attest, prepar-
ing our town for the arrival of the world’s most powerful and influential leaders is undoubtedly a unique experience.
Our community has been working collaboratively with our Provincial and Federal partners to ensure that Huntsville
is fully prepared to showcase our piece of paradise to the world.

Those familiar with Huntsville are well aware as to why the Prime Minister concluded that our town is an
ideal location for this year’s annual gathering. Huntsville is located in northern Muskoka, an area of the Province
that is famous throughout the world for its vast unspoiled wilderness, lakes, wildlife, and unique regional culture.
Nestled among four picturesque lakes and situated on the doorstep of the much celebrated, Algonquin Provincial
Park, Huntsville is home to a wide array of resorts, parks, and campgrounds.

Our community is tremendously proud of its well-deserved reputation as one of Ontario’s premier destina-
tions for adventure and recreation. Our location in the rugged heartland of the Canadian Shield affords us the ability
to provide a great variety of outdoor activities ranging from the leisurely to the extreme. We are entirely committed
to providing our residents and guests with the opportunity to live a healthy, active, and fulfilling lifestyle that is re-
spectful and appreciative of our beautiful natural surroundings. Being selected as the host for the G-8 Summit has
served to further our ability to offer such lifestyles.

As a result of our good fortune, Huntsville has received a cash infusion from the Federal Government
exceeding 28 million dollars. I am delighted to assure you that we have fully capitalized on this opportunity. From
the outset of this process, Huntsville has acknowledged the immense potential for substantive community improve-
ment accompanying our selection. Consequently, the Town has initiated, and by the time you read this, will have
completed several projects of particular importance and achievement.

The G-8 Legacy Fund has enabled us to take numerous steps to significantly improve our infrastructure
in progressive, cutting edge ways. Our brand new 20 million-dollar Summit Centre is a massive expansion to the
Huntsville Centennial Centre. True to our heritage, and in keeping with our values, Huntsville has made extensive
efforts to ensure the building is as environmentally friendly as possible. Built and outfitted with only the highest qual-
ity materials and most sophisticated technologies, the now 150,000 square foot square feet building is estimated
to cost less per year in operating expenses than the previous Centennial Centre, which was less than half the size
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 The Summit Centre is merely one small facet of Huntsville’s G-8 legacy. In addition to this exciting new
facility, we are currently in the process of developing plans for our new Active Living Center. This building, which
will sit adjacent to the Summit Centre, has been designed specifically with seniors and young children in mind. The
Active Living Centre will stand as a testament to this community’s steadfast commitment to healthy living through-
out all of life’s stages.

Perhaps more significant than all other endeavors Huntsville has embarked upon this past year is the ini-
tiation of a long-term relationship with the University of Waterloo. This prestigious institution will soon have a brand
new and custom designed permanent building in Huntsville. Devoted to the study and research of environmental
science and ecosystem resilience, the new University of Waterloo building marks an exciting new beginning for
Huntsville. We are honored the University of Waterloo recognized Huntsville as an absolutely ideal place to expand
its operations.

Huntsville provides the University of Waterloo the ability to work collaboratively with the Government of
Ontario, Algonquin Park, and the Northern Ontario School of Medicine to solve the most pressing and critical issues
facing our natural world. It is our goal to foster this wonderful relationship into something greater. Huntsville is con-
fidently striving towards becoming a national—and perhaps even international—centre of environmental research.

The University of Waterloo Campus is located directly above Cann Lake on a piece of property recently
christened “Forbes Hill,” in honor of the longtime former owners, the Forbes family. This area is now linked by road
to the nearby Summit Centre, Huntsville High School, and Muskoka Heritage Place. Forbes Hill Research Park has
intentionally been developed in such a way as to easily accommodate several other building sites adjacent to the
University of Waterloo building. It is our expectation that these additional sites will ultimately be used for the future
establishment of more environmental science research facilities.

The coming of the 2010 G-8 Summit and the establishment of the University of Waterloo Research Facil-
ity are two integral components of our town’s strategic vision. We are striving to define and brand Huntsville as a
leading community for events, tourism, and environmental research. Our achievements this past year only serve to
further solidify our town as a foremost destination for sporting events, conferences, and academic pursuit.

Huntsville is a community that takes great pride in honoring the past while simultaneously looking with ea-
ger anticipation towards the future. The year 2010 will undoubtedly be remembered as a seminal time in the history
of Huntsville. Our town is in no way lacking in ambition; in fact, spend a little time here and it will quickly become
evident how passionate the people of Huntsville are about moving their community forward.

I would like to personally invite you to experience all that Huntsville has to offer.

Yours very truly,

Yours very truly,

Claude Doughty
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I would like to welcome you to Canada and to my home here in
Parry Sound - Muskoka for this year’s G-8 Leaders Summit. Ontario has
much to offer, so I encourage you to enjoy the beauty surrounding you during
your stay and learn about the exciting and innovative businesses, communi-
ties and people that make Canada extraordinary.

The second largest country in the world, Canada has 10 million

square kilometres of natural beauty and a wealth of resources. Three oceans
line our frontiers—the Pacific Ocean in the west, the Atlantic Ocean in the
east, and the Arctic Ocean in the north. Strategically located as the cross-
roads between the North American marketplace and the booming economies
of Asia, Canada offers tremendous opportunities for companies looking to
expand and export products. Since 1988 we have enjoyed and reaped the
benefits of a free trade agreement with the United States, which results in
over $1 trillion in merchandise trade a year. We also enjoy a strong economic relationship due to our historical ties
with many members of the European Union.

Whether you are considering business expansion or new North American investment opportunities,
Canada should be your investment destination of choice. We have always been a trading nation and commerce
remains the engine of our economic growth.

Emerging from the recent global economic recession, Canada is in the best position of any G-8 country
to come out strong and prosperous. Canada has the soundest banking system in the world and has received
honours for its leadership in handling the economic crisis. The Economic Intelligence Unit has rated Canada the #1
place to do business in the G-7. The lowest business tax rates among the G-7 countries can also be enjoyed here.

We are a nation of intelligent, educated workers, ranking #1 in the OECD in higher education achieve-
ment. We are proud of our world-class universities, and our universally acclaimed health care system. Canada
boasts some of the cleanest and friendliest cities in the world, along with our spectacular scenery.

When a country has as much to offer as Canada , it’s impossible to pinpoint a single reason to invest
in one of the most dynamic economies in the world. The multiple advantages and unparalleled potential make it
a place where businesses can achieve excellence on a global scale. In addition, Canada truly is a great place to
invest, work, live and raise a family.

I hope that you enjoy your time in Canada and in Muskoka and I thank you for helping us make this year’s
G-8 Leaders Summit a great success!

The Right Honorable Tony Clement MP.

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The governments of most nations recognize the
need to develop sustainable economies. Doing so de-
mands a reduction of the emission of greenhouse gases
into the atmosphere, as well as greater energy efficiency.
Nickel makes it possible for various industries (fuel cells,
automotive and aerospace, to name only three) to be
innovative in these areas. Nickel-containing materials of-
fer toughness, durability, corrosion resistance, catalytic
activity, and a host of other attributes to processes and
products.
However, the judgment of society depends on more
than just economic and environmental contributions, vi-
tal as those are. Quality of life is also a measure of sus-
tainability. Employment, occupational and community
health, infrastructure – these and other social aspects
need to be given due consideration.
Because nickel is so rarely visible to the general
public, few are aware of the economic and social di-
mensions of nickel. Today we care more and more about
sustainability and yet we seem to know less and less
about the materials that contribute to a sustainable fu-
ture.
Making sustainable choices should be easy. The
most important applications of nickel contribute to in-
novation and sustainability in our daily lives. How?
Living Comfortably - 60% of all nickel is used to
make stainless steel. If you look around you, there will
be countless examples of how this beautiful, strong and
flexible material helps to improve the quality of your life,
every single day.
Eating and Drinking - Nickel in stainless steel makes
the production, the distribution, the preparation and the
consumption of food and water safe, easy and pleasur-
able.
Staying Healthy - There have been huge advances
in the technologies that keep us healthy - more effective
medicines, cleaner water, new technologies and bet-
ter surgical tools best and cleanest surgical materials
and equipment are essential - and many of them involve
nickel.
Communicating - Nickel plays several different roles
in technologies that have revolutionized the way in which
humans communicate. Mobile phones, laptops, hand
held devices and other wireless gadgets continue to ap-
pear on the market in faster and savvier models and
continue to modernize our lives.
Moving Around - We live in a world that never stops.
And nickel plays a role in many of our key modes of
transportation. Be it nickel alloys in the batteries of hy-
brid cars or in the turbines of jet engines, or nickel-con-
taining stainless steel in passenger trains and subways,
nickel is a crucial element enabling us all to get from
place to place.
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Driving Industry - Nickel provides the properties to
enable innovation, helping to advance the goals of sus-
tainable production and consumption.
Enabling Clean Energy - Global warming is one of
the major challenges facing the world today. In recent
years, we have seen initiatives to curb carbon emissions
by developing renewable energy sources. Nickel and
nickel alloys play a crucial role in the production of re-
newable energy – enabling clean power to be a central
part of our effort to tackle global warming.
Promoting Sustainable Development - The produc-
tion and use of nickel supports quality employment and
generates wealth on six of the world’s continents. At the
same time, the state of knowledge about nickel in re-
lation to human health and the environment has never
been higher, and neither has the industry’s commitment
to the management of nickel throughout its life cycle.
To satisfy present and future energy needs requires
the most efficient use of natural resources… and the
imaginative use of non-traditional resources. Gas tur-
bines, made of nickel-containing super alloys for its abil-
ity to high temperatures, generate electricity by utilizing
waste gas from decomposing organic matter. And at the
end of the life of the turbine, the nickel alloys will not be
waste: they will become new nickel-containing Nickel al-
loys for future generations.
Infrastructure built in challenging environments with
nickel-containing stainless steel rebar will last without
ever needing serious repair or rehabilitation. Strong,
easy to work with, corrosion resistant to its core, cost
effective: the right rebar for the job is the right rebar for
sustainability. Today there is more reason than ever for
design life to be calculated in generations, not decades.
For a hungry and growing world population a secure,
sustainable food supply is essential. The collection, pas-
teurization and delivery of pure, safe milk requires equip-
ment built to the highest hygienic standards available.
Nickel-containing stainless steels deliver this for the
dairy industry as for every food processing industry in
the world. And in the end, the nickel stainless steels will
be recycled and ready again to minimize losses.
Nickel’s high-temperature strength, ductility, tough-
ness, electro-chemical and other properties, and abil-
ity to enhance corrosion resistance enable engineers
to design structures and systems that use the Earth’s
resources more wisely.
Nickel is an important alloying agent in hundreds of
alloys and stainless steels. It is at the heart of important
battery chemistry and catalysts. And it is totally recy-
clable.
 7\ISPZOLY»Z5V[L
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The CAT Company Inc
G-8 Summit Magazine Company Ltd
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Chris Atkins

Chris Atkins (K]PZVY`)VHYK

Peter Atkins
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Jennifer Latchman
Dear Summit Readers, .YHWOPJ+LZPNUHUK(Y[KPYLJ[PVU
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I would like to take this opportunity to thank all Henri de Baritault
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The CAT Company is the only publishing compa- Ray Baker
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Summits and is now happy to publish the first ever /PUJRSL`0UZ[P[\[LVM7VSP[PJZ<UP]LYZP[`VM<[HO
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G-8 – G-20 summit magazine, continuing the tradition Kirk Jowers
and continuing to get great recognition as the Sum- 0U[LYU4HUHNLY
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Rochelle McConkie
The CAT Company continues to increase the ex-
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growth of digital technology, using Scribd.com Hiram Chodosh
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And to add to many other “firsts” this year, we are Barry Scholl
again the first company to launch the first G-8 – G-20 ;OHURZ;V
magazine app for the iPhone. Hinckley Institute of Politics
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This year’s G-8 will be a historical event. For the intro60.com
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first time in the Summit’s history the G-8 and the G-20 Verso paper
follow each other. The question dominating the event
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organizers and the world is this the last G-8 Summit? Prime Minister Stephen Harper’s Office
Or, will the G-20, which rose from the legacy of the Premier Dalton McGuinty’s Office
G-8, take its place? It will be an interesting time to Huntsville Mayor Claude Doughty
observe. Toronto Mayor David Miller
The Right Honorable Tony Clement’s MP Office
President Lee Myung-Bak’s Office
I hope you enjoy our magazine and we look for-
ward to seeing you in France for the 2011 summit, be
it the G-8, the G-20, or both.
Copyright©2010 The G-8/G-20 Summit Magazine Company Ltd. and The Cat Company
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consent of the publisher. All trademarks that appear in this publication are the property
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summit in Muskoka and Toronto, Canada, and no representations have been made as
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Kirk L. Jowers
Barry Scholl
Courtney H. McBeth

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Rochelle McConkie

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Casey Coombs, Hinckley Institute of Politics, University of Utah
Kevin Michael DeLuca, Hinckley Institute of Politics, University of Utah
George Loewenstein and Daniel Schwartz, Carnegie Mellon University
Ashley Edgett, Hinckley Institute of Politics, University of Utah
Lauren Hansen, Hinckley Institute of Politics, University of Utah
Jacob Lindsay, Hinckley Institute of Politics, University of Utah
Sheldon Wardwell, Hinckley Institute of Politics, University of Utah
Leslie Francis, University of Utah S.J. Quinney College of Law
Amos Guiora, University of Utah S.J. Quinney College of Law
James R. Holbrook, University of Utah S.J. Quinney College of Law
Arnold W. Reitze, Jr., University of Utah S.J. Quinney College of Law
Kel Currah, What World Strategies and Editor of The Sherpa
Wayne McCormack, University of Utah S.J. Quinney College of Law
Jonathan A. Muir and Ralph B. Brown, Brigham Young University
Amy J. Wildermuth, Professor, University of Utah S.J. Quinney College of Law
Rainer Wend, DHL
Lincoln L. Davies, University of Utah S.J. Quinney College of Law
Robert Atkinson, Information Technology and Innovation Foundation
Johan Bergenäs, The James Martin Center for Nonproliferation Studies
Ron Dembo, zerofootprint.org
Carlos Manuel García, Medical Doctor, Utopia Wellness Clinic
Robert Hornung, The Canadian Wind Energy Association

3,.(3
The G-8 / G-20 Summit magazine is a yearly publication independent of political affiliations or agendas pub-
lished by The CAT Company. The articles in the G-8 / G-20 Summit Magazine represent the views of their
authors and do not necessarily reflect those of the editors and the publishers. While the editors assume re-
sponsibility for the selection of the articles, the authors are responsible for the facts and interpretations of their
articles. Authors retain all legal and copy rights to their articles. None of the articles can be reproduced without
the permission of the editors and the authors.

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Welcome Message from Prime Minister Harper 10 Engines of Change: Motorcycles and
Welcome Message from President Lee Myung-bak 12 Social and Economic Changes in Southeast Asia 84
Welcome Message from Premier Dalton McGuinty 14 By Jonathan A. Muir and Ralph B. Brown, Department of Sociology,
Welcome Message from Toronto Mayor David Miller 16 Brigham Young University
Welcome Message from Huntsville Mayor Claude Doughty 18 Unbounded Nature: Making Roaded Landscapes
Welcome Message from Minister Tony Clement 20 More Permeable for Wildlife 86
Sustainable Life, Sustainable Future 22 By Amy J. Wildermuth, Professor, University
Publisher’s Note 24 of Utah S.J. Quinney College of Law
EDITORIAL 26 Verso improved energy efficiency 88
Table of Contents 28 Living Responsibility 94
The G-8: The Greatest Show on Earth 32 By Rainer Wend
By Kel Currah, Executive Director, What World Strategies, Oil, Energy, Hindsight and Foresight 98
and Editor of The Sherpa By Lincoln L. Davies, Professor, S.J. Quinney College
New Prime Minister of the United Kingdom 34 of Law, University of Utah
JOINT G-8 BUSINESS DECLARATION 36 G-20 Countries 100-122
April 28, 2010, Ottawa, Canada State Bank of India (Canada) 111
Muskoka 2010, Canada 42 Time to End Rampant Mercantilism 124
Muskoka’s Deerhurst Resort 54 By Robert Atkinson, President, Information
Political Capital, Capitol Hill and France 56 Technology and Innovation Foundation
By Casey Coombs, Hinckley Scholar, Hinckley Institute of Politics Global Macroeconomic Imbalances: 128
China’s Emerging Public Sphere 58 G-20 Leaders Must Back Up
By Kevin Michael DeLuca, Hinckley Fellow, Hinckley Institute of Politics Their Rhetoric with Deeds
Nothing to Fear but a Lack of Fear: 60 By The Brookings Institution
Climate Change and the Fear Deficit Institutional Development: 132
By George Loewenstein and Daniel Schwartz How the G-20 May Help the World’s Poor
A Mecca for Militants - The Development of 64 By The Brookings Institution
International Terrorism in Peshawar, Pakistan Protecting Haiti’s Children: 134
By Ashley Edgette, Hinckley Scholar, Hinckley Institute of Politics Good Intentions or Child Trafficking?
Declining Biodiversity: 66 By The Brookings Institution
Economic Discrepancies and Cooperative Solutions The Status Report: 136
By Lauren Hansen, Hinckley Scholar, Hinckley Institute of Politics Obama and Global Financial Stability
Recommendations for Malaria Control 68 By The Brookings Institution
Policy in Sub-Saharan Africa The Zedillo Commission Report on World Bank Reform:
By Jacob Lindsay, Hinckley Scholar, Hinckley Institute of Politics A Stepping Stone for the G-20 Summits in 2010 138
African Indexes Fall Short 70 By The Brookings Institution
By Sheldon Wardwell, Hinckley Scholar, Hinckley Institute of Politics BD Helps Strengthen Sub-Saharan Healthcare
Challenges for Global Health: Through Improved Lab Performance 142
Burdens of Disease and the Millennium Development Goals 72 Reaching the World’s Most Vulnerable 146
By Leslie Francis, Professor, University “C20” – The Business Mirror of the G-20 148
of Utah S.J. Quinney College of Law The Role of Regional Organizations in
Global Security—An Analysis Moving Forward 74 Combating WMD Terrorism 150
By Amos N. Guiora, Professor, University Johan Bergenäs – The James Martin Center
of Utah S.J. Quinney College of Law for Nonproliferation Studies
Promoting Peace in Iraq 76 Revolutionize the World – One Plug at a Time 154
by Supporting the Rule of Law By Ron Dembo
By James R. Holbrook, Professor, University From Sick-Care to Health-Care 158
of Utah S.J. Quinney College of Law By Carlos Manuel García, Medical Doctor
Legal Issues in the Control 78 Wind Energy in Canada: 2009-2010 Overview 162
of Geological Carbon Sequestration By Robert Hornung, President of the Canadian
By Arnold W. Reitze, Jr., Professor, University of Utah Wind Energy Association (CanWEA)
S.J. Quinney College of Law and member of the University
of Utah’s Institute for Clean and Secure Energy
Prosecuting Terrorism Without the Language of War 82
By Wayne McCormack, Professor, University of Utah
S.J. Quinney College of Law
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Prime Minister President Chancellor Prime Minister

Stephen Harper Nicolas Sarkozy Angela Merkel Naoto Kan

.LVNYHWOPJHS .LVNYHWOPJHS .LVNYHWOPJHS .LVNYHWOPJHS

PUMVYTH[PVU! PUMVYTH[PVU! PUMVYTH[PVU! PUMVYTH[PVU!

Area: 9,970,610 km2 Area: 550,000 km2 Area: 357,021 km2 Area: 377,864 km2
Population: 32.6 million Population: 63.0 million Population: 82.3 million Population: 127.7 million
(2006) (2006) (2006) (2006)
Annual population growth Annual population growth Annual population growth Annual population growth
rate: 1.0% (2006) rate: 0.5% (2006) rate: -0.2% (2006) rate: -0.003% (2006)
Capital: Ottawa Capital: Paris Capital: Berlin Capital: Tokyo
Official languages: Official language: Official language: Language:
English and French French German Japanese

,JVUVTPJKH[H! ,JVUVTPJKH[H! ,JVUVTPJKH[H! ,JVUVTPJKH[H!

GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2]
- Total $1,436 billion - Total $2,593 billion - Total $ 3,321 billion - Total $ 4,382 billion
- Pro capita $43,674 - Pro capita $ 42,033 - Pro capita $ 40,400 - Pro capita $ 34,296
- % World GDP 2.6% [4] - % World GDP 4.8 [4] - % World GDP 6.2 [4] - % World GDP 8.0 [4]

GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3] GDP (PPP) 2007 [3]
- Total $ 1,270 billion - Total $ 2,068 billion - Total $ 2,812 billion - Total $ 4,292 billion
- Pro capita $38,617 - Pro capita $ 33,508 - Pro capita $ 34.212 - Pro capita $ 33,596
- % World GDP 2%[4] - % World GDP 3.2 [4] - % World GDP 4.3 [4] - % World GDP 6.6 [4]

-VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[!

Federal parliamentary Presidential republic Parliamentary federal Parliamentary

monarchy republic constitutional monarchy

.ZOLSK[VKH[L! .ZOLSK[VKH[L! .ZOLSK[VKH[L! .ZOLSK[VKH[L!

Kananaskis Summit Evian Summit (2003) Heiligendamm Summit Hokkaido Toyako Summit
(2002) Lyon Summit (1996) (2007) (2008)
Halifax Summit (1995) Summit of the Arch Cologne Summit (1999) Kyushu-Okinawa Summit
Toronto Summit (1988) (1989) Munich Summit (1992) (2000)
Ottawa Summit (1981) Versailles Summit (1982) Bonn Summit (1985) Tokyo Summit (1993)
Rambouillet Summit Bonn Summit (1978) Tokyo Summit (1986)
(1975) Tokyo Summit (1979)
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3LHKLY! 3LHKLY! 3LHKLY! 3LHKLY!

Prime Minister Prime Minister President President

Silvio Berlusconi David Cameron Barack Obama Dmitriy Medvedev

.LVNYHWOPJHS .LVNYHWOPJHS .LVNYHWOPJHS .LVNYHWOPJHS

PUMVYTH[PVU! PUMVYTH[PVU! PUMVYTH[PVU! PUMVYTH[PVU!

Area: 301,255 km2 Area: 244,820 km2 Area: 9,629,091 km2 Area: 17,075,200 km2
Population: 58.3 million Population: 60.5 million Population: 299.4 million Population: 142.8 million
(2006) (2006) (2006) (2006)
Annual population growth Annual population growth Annual population growth Annual population growth
rate: 0.3% (2006) rate: 0.5% (2006) rate: 0.9% (2006) rate: -0.5% (2006)
Capital: Rome Capital: London Capital: Washington D.C. Capital: Moscow
Official language: Official language: Official language: Official language:
Italian English English Russian

,JVUVTPJKH[H! ,JVUVTPJKH[H! ,JVUVTPJKH[H! ,JVUVTPJKH[H!

GDP (nominal) 2007 [2] GDP (nominal) 2007 [3] GDP (nominal) 2007 [2] GDP (nominal) 2007 [2]
- Total $ 2,105 billion - Total $ 2,804 billion - Total $ 13,808 billion - Total $ 1,290 billion
- Pro capita $ 35,745 - Pro capita $ 46,098 - Pro capita $ 45,725 - Pro capita $ 9,074
- % World GDP 3.9 [4] - % World GDP 5.1 [4] - % World GDP 25.3 [4] - % World GDP 2.4 [4]

GDP (PPP) 2007 [3] GDP (PPP) 2007 [2] GDP (PPP) 2007[3] GDP (PPP) 2007 [3]
- Total $ 1,787 billion - Total $ 2,168 billion - Total $ 13,808 billion - Total $ 2,090 billion
- Pro capita $ 30,365 - Pro capita $ 35,634 - Pro capita $ 45,725 - Pro capita $ 14,705
- % World GDP 2.8 [4] - % World GDP 3.3 [4] - % World GDP 21.3 [4] - % World GDP 3.2 [4]

-VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[! -VYTVMNV]LYUTLU[!

Parliamentary republic Parliamentary constitu- Presidential federal re- Federal Republic

tional monarchy public

.ZOLSK[VKH[L! .ZOLSK[VKH[L! .ZOLSK[VKH[L! .ZOLSK[VKH[L!

Genoa Summit (2001) Gleneagles Summit Sea Island, Georgia Saint Petersburg Summit
Naples Summit (1994) (2005) (2004) (2006)
Venice Summit (1987) Birmingham Summit Denver, Colorado (1997)
Venice Summit (1980) (1998) Houston, Texas (1990)
London Summit (1991) Williamsburg, Virginia
London Summit (1984) (1983)
London Summit (1977)
**
6XPPLW


 ;OL.!;OL.YLH[LZ[:OV^VU,HY[O
By Kel Currah, Executive Director, What World Strategies, and Editor of The Sherpa
When the presidential limousines have left the Deer-
hurst Inn and the police take away the last piece of se-
curity fencing on the 26th of June, the curtain will have
come down for the final time on the greatest show on
earth. The Muskoka G-8 Summit is likely to be the last
G-8, a victim of the financial crisis and a global shift
eastward as the G-20 becomes the premier global eco-
nomic forum.
But what a carnival it had become: a travelling show
pitching its tents in luxurious hotels, chateaus and pal-
aces in the eight G-8 host countries for two days of
press conferences, photo shoots, and drama. By the
end of its 35 year tour it had become a mega event,
bringing together up to 30 heads of state and leaders of
multilateral institutions, guarded by up to 15,000 police
and soldiers costing hundreds of millions of dollars to
stage, attracting more than 4,000 members of the press
and non-governmental organizations (NGOs). And, not
the least, it was often targeted by hundreds of thou-
sands of activists taking part in protests and rallies.
The G-8 created a massive amount of activity from
host governments, academics, the media, and civil so-
ciety. The G-8 leaders summit was not a stand-alone
event. It was always preceded by a host of advance
meetings of G-8 Development Ministers, Finance Minis-
ters, and Environmental Ministers amongst others. In its
last decade, the media began to use the G-8 summits
as the annual moment to put global poverty on the front
pages of the newspapers. As a result, groups working
on poverty worked very hard to direct the media and
public’s attention to their particular campaigns. Rock
stars Bono and Bob Geldof took to editing special edi-
tions of national papers such as the German’s Bild in
2007, Italy’s La Stampa in 2009, and Canada’s Global
& Mail in 2010. Concerts on Africa were held and star-
studded press conferences were organized during the
G-8 Summits demanding justice and giving the reac-
tions of celebrities and NGOs to the G-8 communiqués.
NGOs literally created street theater during the Sum-
**
6XPPLW

mits to raise the profile of health, education, and a wide
array of other concerns. Oxfam’s ‘big heads’—large
unwieldy plaster-of-paris caricatures of the G-8 lead-
ers—were recycled again and again as they traveled the
globe to do media stunts. Such mini-theatrics included
pictures of the G-8 leaders playing poker, swimming in
the Baltic, and feasting as Roman Emperors in Rome (as
Rome burned, of course). The stunts became so com-
plex that for the 2008 Japanese G-8 one NGO rented a
crane and hired a dance troop to execute its stunt.
Now that the Big Tent is
coming down, what will the
G-8 be remembered for?
Beyond dry statements on
currency rates and balanced
economies, it is likely that
the G-8 will be remembered
most for its work on global
development and its pioneer-
ing initiatives forging global
responses to urgent social
issues. This trend began in
earnest in 1998 at the Bir-
mingham G-8, which focused
on debt; it continued in 2001
in Genoa with the creation of
the Global Fund on HIV/AIDS,
TB and Malaria. Its crowning
achievement was at the 2005
Gleneagles summit, when
G-8 leaders made ambitious
pledges on overseas devel-
opment aid, health, HIV/AIDS
and education.
The G-8 undertook substantial initiatives to pool
global responsibility and action on pressing global con-
cerns that did bear fruit. As a result of these commit-
ments millions of children in Africa are in school; millions
have access to life saving drugs, and aid did increase
from the G-8 countries.
Despite the advances, the implementation of the
commitments failed to meet the ambition of the com-
muniqués. The “can-do” spirit behind the initiatives cre-
ated in the rarified atmosphere of the summits tended to
dissipate back home, especially during the crunching of
national budgets: ODA and other global initiatives were
easy targets to cut when money got tight. Consequent-
ly, the G-8 is likely to be remembered more for what it
could have achieved than for what it did achieve. In the
end, the G-8 did not make poverty history.
But there is one lasting legacy of the G-8, albeit it
was unplanned, unintended, and likely, regretted by the
G-8 leaders: the emergence of a strong global cam-
paigning industry working on influencing the global
agenda through coordinated multinational coalitions
and platforms.
The increased activity of the G-8 to address sustain-
able development grew at the same time as a coherent
global community of campaigners. While there always
had been international campaigns, the movement took
a leap forward as it began working on the G-8. Again,
the first step took place at the Birmingham G-8 in 1998
when over 70,000 activists joined hands to create a
human chain around the G-8 summit venue where the
leaders were meeting. The
action, calling for debt relief
for the poorest countries, led
the assembled G-8 leaders to
change their agenda and ad-
dress the issue of debt. The
group behind the action, the
Jubilee Debt Campaign, went
on to become a truly global
campaign stretching from
London to New Zealand. It
continued its global activi-
ties at the next year’s summit
in Cologne, where the G-8
countries agreed to a debt
relief framework.
Campaigning on the G-8
continued to grow and devel-
op, through the lows of Ge-
noa in 2001, the remoteness
of Kananaskis in 2002, and
the exclusion of Sea Island in
2004. It emerged even stron-
ger for the 2005 meeting in
Scotland. From the perspective of most campaigners,
that now historical Gleneagles summit was probably the
crowning achievement of massive coordinated interna-
tional G-8 actions. Campaigners created Make Poverty
History, a sophisticated global campaign, and organized
a rally of 250,000 people to form a white band around
Edinburgh Castle on the day before the summit. The
movement attracted movie stars and rock stars who
embraced campaigning and headlined the advertising,
media work, and two concerts in the lead-up to the G-8.
It was a truly international set of events that made front-
pages everywhere.
In between summits NGO policy specialists lobbied
the G-8 Sherpas, the governments’ chief negotiators,
and poured over leaked communiqués. Activists be-
came adept at the arcane language of global negotia-
tions. Civil society groups organized international G-8
planning meetings and circulated petitions not just to
supporters in G-8 countries but to people in Africa and
Asia as well. G-8 advocacy even influenced the expan-
sion plans of the international NGOs as groups opened
offices in G-8 countries, such as Italy, to better position
to influence the host government.
This attention to G-8 summits bore fruit, but the
return on NGO investment began to falter in the later
years. No campaign, no matter how well run, could
overcome the limitations posed by growth of G-8 na-
tional deficits. And the international economic crisis that
began in the fall of 2008, meant global coordination on
fiscal and monetary issues became the priority, shov-
ing development aside. As a result, the G-8 has been
eclipsed by the G-20 leader’s summit, which met for the
first time in November 2008.
In the end, the enduring legacy of the G-8 may ac-
tually be the movement it (inadvertently) did much to
create. But as campaigners begin directing their en-
ergies toward the G-20 they will need to learn, adapt,
and adjust their lobbying strategies: the new G-20 is a
very different creature. The G-20’s mix of political sys-
tems and varying levels of restrictions on press and
civil society activities will require that campaigning and
advocacy models developed in the context of the G-8
be revamped. However, the structures, networks, and
frameworks developed over the past decade are in
place and should endure—thanks to the G-8.
The annual gathering of leaders will have at least one
lasting legacy for the global media to reflect on when
they write their obituaries of the G-8. The greatest show
on earth will not be remembered for achieving all that it
promised to do. But, even unfulfilled, its commitments
to Africa, health, HIV/AIDS, education, and overseas
development aid were the closest the global community
has ever come to taking concrete action and collective
responsibility for tackling urgent development issues.
**
6XPPLW

 5L^7YPTL4PUPZ[LYVM[OL<UP[LK2PUNKVT
David was elected Leader
of the Conservative Party
in December 2005, on a
mandate to change the
Party and change the
country. Since then he
has set out plans to re-
build our battered econ-
omy, revive our belea-
guered NHS and repair
our broken society.
David’s family has always been the starting point of
everything he has wanted to achieve in politics. He is
proud of the values that were instilled in him when he
was young. Today, as a father, he knows how impor-
tant quality family time is, and has made shared paren-
tal leave a priority. David, Samantha and their young
children live in London and West Oxfords hire, where he
has been MP for Witney since 2001.
Before he became an MP, David worked in business
and government. He worked as a Special Adviser in
government, first to the Chancellor of the Exchequer
and then to the Home Secretary.
Afterwards he spent seven years at Carlton Communi-
cations, one of the UK’s leading media companies, and
served on the management Board.
David’s experience in business made him appreciate
first hand the damaging effect which red tape and high
taxes can have on job creation.
At a time when the country is in recession, and people
are worried about losing their jobs, he believes there is
urgent need for change.
He published plans for a National Loan Guarantee
Scheme to get money flowing to business again. He
has called for tax breaks for pensioners, and the aboli-
tion of income tax on savings for basic rate taxpayers,
in the 2009 Budget. At a time when families are suffer-
ing, he has announced plans for a freeze in council tax
for two years by cutting wasteful Government spend-
ing. He believes we need to cut employment costs for
small businesses by cutting National Insurance and
through a tax break for new jobs, and that government
needs to live within its means to help tackle the dou-
bling of the national debt.
David’s vision is of a country where people have
more opportunity and power over their lives; a country
where families are stronger and society is more respon-
** sible; a Britain which is safer and greener.
6XPPLW

Political party: Conservative Party
Chief of State: Queen Elizabeth II
Head of Government: Prime Minister James Gordon
Brown
Most recent election: 5 Oct 2005
Government: Lower House — Majority; Upper House —
Majority
Political system: Parliamentary
Legislature: Bicameral, elected House of Commons, ap-
pointed House of Lords
Capital: London
Official language: English
61,133,205; country comparison to the world: 22nd (July
2009 est.)
Population: 0.279%; country comparison to the world:
175th (July 2009 est.)
Population Growth Rate: NA
Currency: British pound (£)
GDP (official exchange rate): $2.68 trillion (2008 est.)
Predicted change: -4.1% (Q1 2009); -3.7% (2009)
Composition by sector: 1.3%-agriculture; 24.2%-industry;
74.5%-services (2008 est.)
Central Bank interest rate: 0.5% (7 Jan. 2010)
Official reserve assets: $21,868.00 million (Nov. 2009)
Foreign currency reserves: $7,730.00 million (Nov. 2009)
[in convertible foreign currencies]
Securities: $6,715.00 million (Nov. 2009)
IMF reserve position: $0.00 million (Nov. 2009)
Special Drawing Rights: $0.00 million (Nov. 2009)
Gold: $0.00 million (Nov. 2009) [including gold deposits and,
if appropriate, gold swapped]
Financial derivatives: $-682.00 million (Nov. 2009)
Loans to nonbank residents: $0.00 (Nov. 2009)
Other reserve assets: $14,499.00 million Nov. 2009)
Commercial Bank prime lending rate: 4.63% (31 Dec.
2008)
Stock of money: NA (31 Dec. 2008)
Stock of quasi money: NA (31 Dec. 2008)
Stock of domestic credit: $NA (31 Dec. 2008)
Household income or consumption by % share:
2.1%-lowest 10%; 28.5%-highest 10% (1999)
Inflation rate (consumer prices): 3.6% (2008 est.)
Investment (gross fixed): 16.7% of GDP (2008 est.)
Current account balance: $-28.2 billion (lQ3 2009)
Budget: $1.056 trillion-revenues; $1.214 trillion-expendi-
tures (2008 est.)
Budget balance: -14.5% of GDP (2009)
Public debt: 47.2% of GDP (2008 est.) [cumulative debt of
all government borrowing] Exchange rates (per USD):
0.63 (7 Jan 2010); 0.66 (7 May 2009); 0.51 (May 2008)
Economic aid-donor: $9. 848 billion (2007) [ODA]
Debt-external: $9.041 trillion (31 Dec. 2008)
Stock of direct foreign
investment: $1.445 trillion-at home; $1.567 trillion-abroad
(31 Dec 2008 est.)
**
6XPPLW


 1605;.)<:05,::+,*3(9(;065

April 28, 2010, Ottawa, Canada

We, the most representative business associations in the G-8 countries, call on our governments to
implement coordinated policies that ensure broad economic recovery and robust long term growth. This requires
finding a way forward on correcting trade, fiscal and structural imbalances. Closer and more effective coordination
is needed to establish a principle-based peer-reviewed framework that ensures the health and stability of the global
financial markets. Businesses’ ability to deliver much-needed jobs requires confidence in an open and rules-based
trading system devoid of protectionism. Exit strategies from excessive government spending and debt must be
timely and coordinated to restore private sector confidence. This will drive sustainable global growth.

While climate change is not a focus of the G-8 / G-20 discussions, it is too important for us to ignore in
this declaration. Our governments must reach a climate change agreement with all major emitters setting ambitious
targets to meet the Copenhagen-agreed objectives with a focus on driving technology R&D and investments for a
highly-efficient and non-discriminatory energy mix.

The Toronto G-20 Summit must make clear progress on these matters with commitments for timely
actions being achieved at the Seoul Summit.

**
6XPPLW



JOINT G-8 BUSINESS DECLARATION
We, the G-8 Business Leaders, have gathered on
April 28-29, 2010, in Ottawa, Canada, to address ur-
gent issues concerning the global economic agenda.
Our attention is focused on improving global coopera-
tion and effectiveness of national and international insti-
tutions, in three major areas: preventing future financial
and economic crises; supporting trade liberalization and
rejecting protectionism; and climate action.
Progress on the challenges facing the global econ-
omy can only be achieved via constructive dialogue
among all stakeholders. We respectfully provide our de-
liberations and recommendations to the Heads of State
at the forthcoming Canadian G-8 and G-20 Summits to
be held on June 25-27, 2010.
Our deliberations take into account the fact that this
is a unique year for the G-8 Business Summit as Cana-
da hosts both the G-8 and G-20 Leaders Summits. We
welcome our counterparts from G-20 countries at the
G-8/20 Business Summit. The enhanced collaboration
of the G-20 Business community is of high importance
as we pave the way forward.
The issues being discussed by our leaders at the
G-8 and G-20 Summits require improvements to the
global governance framework. Our comments are de-
signed to encourage action that provides a strong, job-
producing economic environment. Societal challenges
cannot be solved without a dynamic and growing private
sector economy. In addition to generating growth and
jobs, businesses increasingly play a role in addressing
wider societal challenges through voluntary corporate
responsibility programs which should be recognized
and encouraged by governments, Governments must
ensure that CSR will continue to develop on a business-
led basis, without interference from legislation.
The G-8 Business Leaders welcome the results of
the G-20 Pittsburgh Summit, which sent a strong signal
of international cooperation and support Prime Minister
Harper’s view that there is a need to demonstrate real
progress on previous summit commitments at the 25-27
June Summits.
1. Restore Long-term Confidence in
Global Markets
While the world economy is showing signs of recov-
ery, growth in most countries continues to be supported
by government and central bank policies. The recovery
** process is likely to be uneven, and the outlook uncer-
6XPPLW

G-8 Business Declaration
tain. The financial system remains damaged and gov-
ernments must not abandon necessary financial sector
reform just because the recovery is underway. We also
need to avoid a repeat of past mistakes in failed financial
market regulation. Governments must implement cred-
ible exit strategies, at a pace that depends on the state
of the economy, from the extraordinary stimulus mea-
sures that provided much needed traction to the global
economy. Confidence in public finances requires gov-
ernments to unveil clear plans for significantly reducing
their deficits over the medium term, with the emphasis
on spending cuts on entitlements and a focus on growth
generating reform policies.
We recognize that, in a period of constrained spend-
ing, all governments will face major challenges and will
need to prioritize policies. Greater efficiency of public ad-
ministrations, credible cost- cutting measures and pub-
lic-private partnerships will help redirect the resources
needed to increase the effectiveness of education and
training, R&D, innovation and modern infrastructure poli-
cies that enhance productivity, growth and employment.
Private sector investment is needed for sustainable
job creation. This will require ongoing improvements
in economic conditions, business confidence and en-
hanced support for training displaced workers.
Deliver the framework for a strong, sustainable and
balanced economic recovery: Governments must steer
the global economy to sustainable growth while deliver-
ing on the commitment to achieve fiscal responsibility.
Sound structural reforms must be put in place to remove
the weaknesses that lead to the global recession and
correct trade, fiscal and structural imbalances that may
set the stage for the next downturn. We call on govern-
ments to enable businesses to exert their full capacity to
achieve private sector-led economic growth. As part of
these efforts, governments must continue to ensure that
businesses, especially small and medium-sized, have
adequate and affordable access to finance.
Ensure Sound Public Finances: Our governments
must ensure sustained economic growth while putting
a break on public indebtedness. Well-timed and coordi-
nated exit strategies from the extraordinary fiscal mea-
sures undertaken need to be implemented to restore
fiscal discipline, preserve global growth and stability,
and stimulate greater investment and participation in the
labour market. Public budgets need to be rebalanced
with clear plans for exiting from unsustainably high levels
of public debt and more efficient spending to enhance
long-term growth. The ability of businesses to create
jobs and contribute to social welfare would be severely

hampered by burdening companies with increased tax-
es on investment or employment.
Reform the financial sector: Authorities must ensure
the health and stability of the financial system through
an international framework for reform. Priority should be
given to ensuring adequate financial sector capital and
liquidity requirements and building a principle-based
global financial supervision framework through better
collaboration of regulators and peer review. Each coun-
try’s regulation of the financial system must not con-
strain growth or innovation and must focus on restoring
stability of the financial system and ensuring companies’
greater access to finance. The international framework
should be designed to reflect different conditions in dif-
ferent countries, regions and sectors, while ensuring an
effective level playing field. Concerning discussions on
Basel III, government leaders must ensure that compre-
hensive impact assessments on credit/financing avail-
ability be undertaken as part of all new regulatory initia-
tives. This analysis must include cumulative effects.
Enable Job Creation: Governments must continue
to tackle unemployment. For too many unemployed,
the return to economic growth will not see the return of
their former jobs. For employers in many G-8 countries,
the aging population will add significant mid-term pres-
sure to growth strategies. Governments must focus on
enhancing access to education and training in order to
generate the skilled and experienced workers able to
drive innovative productions and services and take ad-
vantage of the new economic opportunities. This should
include expanding training opportunities by supporting
apprenticeship and internship programs which provide
necessary work experience and career development as
well as retraining programs to help people adapt their
skills to the labour market.
2. Global Governance Needed to Support
Trade and Reject Protectionism
Full economic recovery is only possible if nations
further enhance the development of an effective and
efficient rules-based trading system and champion the
importance of global commerce through a strong com-
mitment to open markets via multilateral, regional and
bilateral free trade and foreign investment liberalization
agreements. Empirical evidence clearly shows that ro-
bust, rules-based trade between countries is win-win,
enhancing the prosperity of countries and their citizens.
Conclude the Doha Round and promote free-trade
agreements (FTAs): It is no longer acceptable to sim-
ply “commit” to concluding the WTO Doha Round. The
time is right for governments to go beyond merely ad-
vocating for conclusion of the Doha Round, and reach
G-8 Business Declaration
an ambitious and balanced conclusion within this year
on the basis of progress already made. Political ener-
gy at the highest level should be injected to bridge the
remaining gaps and ensure that any final Doha Round
agreement creates new trade flows, reduces the cost of
doing business across borders and increases predict-
ability for companies. Bilateral and regional free-trade
agreements as complementary measures to the mul-
tilateral process, should serve as a conduit for further
liberalization of world trade in harmony with the WTO
agenda and not as closed “trading clubs”.
Refrain from raising or imposing trade barriers, dis-
mantle existing ones and resist protectionism: Govern-
ments must refrain from raising or imposing new barriers
to trade and investment, imposing new export restric-
tions or implementing measures to stimulate exports
inconsistent with the WTO. Governments should also
quickly take steps to remove any protectionist measures
that were adopted in relation to the recession, including
in stimulus plans. The lengthy list of needed reversals
includes tariffs, non-tariff measures, restrictions on pub-
lic procurement, subsidies, burdensome administrative
procedures affecting imports, market- distorting restric-
tions on exports. There remains a continued need to
encourage governments to jointly work to prevent and
dismantle protectionist measures in collaboration with
the WTO, OECD, IMF and UNCTAD.
Facilitate and further protect foreign investment:
Governments must refrain from raising barriers or im-
posing new barriers to both outward and inbound in-
vestment. Government criteria for blocking foreign in-
vestment in the defense of “national security” or of a
“strategic industry” should be narrowly defined and
only applied under exceptional circumstances. All in-
ternational agreements must include high standards of
investment protection, including non-discrimination, na-
tional treatment and fair and equitable treatment. They
must also include prompt, adequate appeal mecha-
nisms; effective compensation in the event of discrimi-
nation or expropriation; and access for companies to
international arbitration to resolve disputes.
Facilitate secure trade and business travel: In a
world where businesses compete across borders, it is
crucial that borders not act as impediments to legitimate
goods and the mobility and temporary entry of business
travelers. While recent terrorism incidents have spurred
calls for tighter border and travel restrictions, measures
for securing borders and the safety of travelers must be
implemented in a manner that does not unduly burden
legitimate trade or business travel. This requires clear
direction that border measures must be targeted to
achieve the combined objectives of higher security and **
trade facilitation. 6XPPLW


Further protect intellectual property (IP) rights: IP is
key to every knowledge-based economy. IP infringe-
ments result in knockoffs that unfairly compete against
legitimate goods and associated services, all too often
threaten health and safety, dent consumer confidence
in brands and are often a major source of funding for
organized crime. We call on governments to coordinate
closely in fighting illicit trade practices, such as coun-
terfeiting, trade-mark infringement and piracy. Particular
attention must be given to the concrete enforcement of
the TRIPS Agreement and advancing negotiations on
the Anti-Counterfeiting Trade Agreement.
3. Post-Copenhagen: Global Action
Needed on Climate Change
While the 2009 Copenhagen climate change confer-
ence failed to reach consensus, the Copenhagen Ac-
cord represents a step forward in bringing the largest
economies together in developing a long-term agree-
ment on climate change. G-8 Business supports the
development of an international agreement on climate
change that includes all major economies and major
greenhouse gas emitters. While the UNFCCC has been
the primary forum for these discussions, the G-8/G-20
can play an important role in bringing the largest econo-
mies together to advance an agreement that will lead
to a low carbon economy. Global climate action leads
to business opportunities. There must be a balance be-
tween addressing climate change, which includes the
advancement of clean energy development, and other
global priorities, such as poverty and disease eradica-
tion. Since many developing countries are struggling to
provide even the most basic necessities to their citizens,
a global approach to addressing climate change will re-
quire innovative financing mechanisms to ensure their
participation in climate action as well as their commit-
ment to eliminate wasteful energy subsidies which en-
courage energy inefficiency.
Conclude an ambitious international climate agree-
ment: Building on the Copenhagen Accord agreed by all
major emitters and taken note at the COP15, the agree-
ment must include all major emitters with binding reduc-
tion commitments that establish a “level playing field”.
Responsibility for action is shared by both private and
public sectors. We endorse the concept of common but
differentiated responsibilities. This includes developed
countries working with emerging economies to achieve
their twin goals of economic growth and sustainable
development. An effective compliance system must be
developed to enable measurable, transparent and verifi-
** able comparison of the climate change efforts among
6XPPLW

G-8 Business Declaration
countries. Business, which already provides significant
financial support both directly and through taxes and
charges, requires clarity from governments on where
additional financial support will come from in future.
Other general principles of a post-Copenhagen interna-
tional framework include flexibility and diversity for GHG
reduction. A balance between environment, energy se-
curity and economic growth must be struck.
Support innovation and research and diffusion of a
clean energy and low carbon technologies: A techno-
logical revolution is needed in order for the world econ-
omy to grow without accelerating climate change. Since
many technologies will take decades to move from R&D
to widespread implementation, governments must com-
mit to programs that support new technology develop-
ment by the private sector. A paradigm shift to a low car-
bon economy enabled by an optimal policy mix, will drive
profitable technological innovation. This requires the fu-
ture UNFCCC agreement to support a significant scale-
up of investment and demonstration in eco-innovation,
carbon mitigating technologies, renewable energies and
energy efficiency both in the developed and develop-
ing countries. Financial and international cooperation
mechanisms should be encouraged, including the use
of flexible tools, such as Joint Implementation and the
Clean Development Mechanism, and other incentives.
Linking carbon markets, in those countries and regions
that choose to utilize this option, would make them more
effective and foster more cooperation on investment in
low carbon or carbon mitigating projects. Concerted
global support for R&D will need to be put in place in
order to increase the pace of change, commercializa-
tion and deployment of these new technologies. Also
required is the dismantling of trade and investment bar-
riers for environmental technologies by rejecting “green
protectionism”, liberalizing trade, increasing investment
security, cooperating on global standards and opening
procurement markets to competition. Protection for in-
tellectual property rights is essential, as any measures
to weaken these provisions will run contrary to efforts
aimed at developing and deploying clean technologies
through joint ventures, licensing and other private sector
contracts for technological cooperation.
Strive for a full exploitation of energy efficiency: En-
ergy security and climate protection policies must be
mutually reinforcing. Increasing energy efficiency and
diversifying energy-mix and eliminating wasteful energy
subsidies are of key importance for any future climate
strategy. Under this framework, all energy options have
to be pursued to promote a balanced and non-discrim-
inatory energy-mix, including those from traditional, re-
newable and nuclear energy sources.
G-8 Business Declaration

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 4\ZRVRH»Z+LLYO\YZ[9LZVY[
An Ideal Meeting Place for Presidents,
Prime Ministers and You
Key global issues and the opportunity for face-to-
face discussions among the leaders of the world’s major
industrial nations are the substance of the G-8 Summit.
But after the communiqués are complete, it is often
the striking settings of these annual retreats, captured in
the requisite photo calls, that remain imprinted on public
memory.
LOCATION, LOCATION
Picture the stately white halls of Heiligendamm, the
swaying palms of Georgia’s Sea Island, Hokkaido’s se-
rene mountain top, or Gleneagles rolling greens.
Now, that it is Canada’s turn to host the G-8 Summit
for the fifth time, Muskoka and its landmark Deerhurst
Resort will proudly take their place in that historic list of
venues.
Situated just two hours north of Toronto, Canada’s
largest city, Prime Minister Stephen Harper dubbed it “a
jewel in the Canadian Shield and an ideal location.”
Deerhurst offers that sought-after balance of a se-
cluded setting that’s relatively easy to secure, extensive
facilities, easy access to transportation routes and a ma-
jor airport, and proven expertise at dealing with large-
scale meeting logistics.
“Our resort is here to create a sense of place and
a seamless experience that makes it easy for the world
leaders, or anyone, to focus on the business at hand,”
notes Deerhurst General Manager Joseph Klein.
This 6,475 square kilometer region of 1,600 pristine
lakes, massive granite cliffs, and hardy maple and pine
forests is no stranger to globetrotting, high profile travel-
ers either.
** STEAMSHIPS, TRAINS & AUTOMOBILES
6XPPLW Once the summer preserve of wealthy industrialists,

Muskoka has drawn visitors from urban hubs like New
York and Philadelphia since before Canada became a
country.
First sportsmen’s clubs, followed by families, would
arrive by train and then board steamships that dropped
them off for extended stays at the region’s growing num-
ber of lakeside inns.
Founded by a transplanted Yorkshire man intent
on providing “first-class English service” back in 1896,
Deerhurst itself has evolved from a rustic 18-room lodge,
where on start-up a week’s accommodations cost $3.50
per person including meals, to a highly adaptable, 400-
room hotel and conference centre, renowned for offer-
ing the most on-site activities of any resort in Eastern
Canada.
OH CANADA
A fixture of what is known nationally as simply On-
tario “cottage country,” Deerhurst has also become a
low-key icon of Canadians’ collective love for the rural
weekend retreat.
And much of Deerhurst’s expansive 315 hectares
are designed with outdoor relaxation in mind, from
mountain biking and horseback riding trails to parasail-
ing, paintball and, once the snow flies, classic northern
pursuits like snowmobiling and dogsled rides.
Deerhurst and the region’s hundreds of travel-orient-
ed businesses are also fortunate to be surrounded by
other touchstones of Canadian life and culture
This is the very landscape that inspired the country’s
best known artists, the Group of Seven.
And Deerhurst’s vibrant hometown of Huntsville and
the whole string of neighbouring waterside communities
that runs through the region have retained an enviable
balance of main street charm and thriving industry.
The G-8 host venue is also just minutes Algonquin
Provincial Park, a highly accessible yet unspoiled Ontar-
io wilderness playground encompassing almost 7,700
square kilometers that has inspired Canadian success
stories from prime ministers to musicians and the found-
ers of the internationally fashionable Roots clothing
brand.
TAKING CARE OF BUSINESS
While Muskoka continues efforts to diversify, tourism
remains a pivotal draw. And even play is serious busi-
ness at a property like Deerhurst that has put itself on
the map by hosting annual events like the world’s largest
pond hockey championships and an Ironman 70.3 race.
Over the past two decades, Deerhurst has strategi-
cally expanded its business beyond peak summer leisure
traffic into a full-service, 4,200 square meter conference
facility known for its on-site teambuilding program, turn-
key themed events and top-level meetings.
“And the Summit is certainly the most important and
best known executive retreat around the world,” says
Klein.
GREENS & GARDENS
Another big draw for the corporate crowd, as well
as vacationers, is Muskoka’s emergence as a major, top
level golf destination.
Deerhurst was the forerunner, building the highly
playable par-72 Robert Cupp and Tom McBroom de-
signed Deerhurst Highlands in 1990 to flow harmoni-
ously around the rugged and craggy landscape.
Today, it has been joined by seven more prime
resort courses, not to mention the area’s many other
long-term favorites including Deerhurst’s own second
18-hole course, Deerhurst Lakeside.
Deerhurst’s kitchens also put its golf course areas to
good use, foraging for edible ingredients served in the
resort’s seasonal dishes.
A founding member of the region’s fast-growing Sa-
vour Muskoka culinary trail, Deerhurst is North America’s
only resort that produces both maple syrup and wild-
flower honey on its own grounds as well as growing its
own herbs and shiitake mushrooms, composting all its
green food waste, and fueling the resort’s back-country
Hummer tours and rock buggy rentals with biodiesel re-
cycled from its kitchens’ used cooking oil.
The resort also works with over 20 different local
food suppliers, showcasing, like a dozen more area
chefs, small business partnerships and what can be
successfully produced in a relatively short northern
growing season.
Deerhurst Resort Executive Chef Rory Golden sees
the G-8 Summit as a singular opportunity for every host
nation to showcase its heritage and bounty to the world.
A proponent of “farm to fork” long before it became
fashionable, Muskoka, Ontario and Canada will provide
the borders for Golden’s “as local and as flavorful as
possible” G-8 menu.
“Wine, cheese, seafood, our country produces so
many great, perhaps unexpected, flavours from coast
to coast,” says Golden.
“We all come from different places and cultures. But
somehow when you can get people together to share
over a dinner table the world seems a lot smaller,” he
muses.
WELCOMING THE WORLD
While the eyes of the world and the needs of its
most important guests come with a tight schedule and
high expectations, Deerhurst is ready and waiting.
“The finishing touches are in place and we just want
to make sure everyone feels relaxed and at home,” Klein
confirms.
And while there will be lots of famous names and
crowds around Huntsville this June, people in the vari-
ous hotels and neighbouring towns are excited but not
at all fazed by the summit.
Perhaps understandable when you consider that
Muskoka has long been a mecca for Hollywood ce-
lebs, National Hockey League stars and other notables,
since back when Clark Gable, Ernest Hemingway and
Princess Juliana of the Netherlands all summered here.
Music superstar Shania Twain performed in Deer-
hurst’s popular stage shows before getting her big
break in Nashville.
And every summer theatre and music festivals
across the region are packed with well known acts.
“But for all of us it’s a summit in more than one
sense,” said Klein.
“This is a tremendous platform to showcase what
our resort and region as well as Ontario and Canada
represent and offer to people around the globe.”
“We are honored, we are very proud, and we’re de-
lighted to extend the very warmest and most Canadian
of welcomes to the leaders, their delegations, the me-
dia, support staff, visitors and interested viewers around
the world.”
After June 26, 2010, when the G-8 Summit has
come, and gone, one thing seems certain. Muskoka
and Deerhurst will continue to be a great place to get
down to work, re-connect, or just get away from it all.
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By Casey Coombs, Hinckley Scholar, Hinckley Institute of Politics
In recent years, leaders on Capitol Hill have begun
to talk seriously about reviving the United States’ nucle-
ar energy industry. Much of this discussion has cited
France as the model to emulate. In 2006, for example,
President George W. Bush cited France’s overwhelm-
ing reliance on nuclear-generated electricity as evidence
of what an industrialized country could accomplish with
this technology. John McCain, in his latest run for the
presidency, also touted France as an exemplar for clean
energy in the 21st Century. Most recently, President
Barack Obama envisioned a “new generation of safe,
clean nuclear power plants” in his State of the Union
Address. He backed up these claims with more than
$50 billion in loan guarantees for reactor construction;
two plants are already underway in the state of Georgia
using these funds.
These recent—and mounting—suggestions for an
abrupt change of course in U.S. nuclear energy policy
**
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raise numerous questions: First, why is there a renewed
interest in an industry whose growth was abruptly, and
seemingly indefinitely, halted in the late 1970s? Second,
why is France the object of so much praise? And third,
is this praise justified?
The answer to the first question appears to lie in
concerns for environmental stewardship and energy se-
curity. Compared to coal, oil or natural gas, nuclear en-
ergy production accomplishes the now oft-touted goal
of reducing greenhouse gases (GHGs), as nuclear pow-
er produces virtually zero GHG emissions. As far as en-
ergy security is concerned, nuclear power also provides
a stable source of home-grown energy for the foresee-
able future: The average life of a new reactor, such as
those under construction in Georgia, ranges from 30 to
40 years.
The answer to the second question is that France
has been able to join a small group of energy-indepen-
dent (although it imports all of the uranium used to fuel
its reactors), low GHG-emitting countries. Currently,
France draws nearly 80 percent of its electricity from
nuclear sources and gains more than 3 billion Euros per
year as the world’s largest net exporter of electricity, ac-
cording to the World Nuclear Association.
In this light, it would seem that France’s nuclear en-
ergy industry is indeed worthy of the praise U.S. politi-
cians have lavished upon it. Yet an examination of the
full spectrum of issues that nuclear energy presents re-
veals a more nuanced picture. In that picture, the costs
of nuclear power could outweigh its benefits.
The costs come primarily from the inevitable by-
product of nuclear energy production: nuclear waste.
Also known as spent fuel, nu-
clear waste is simply nuclear re-
actor fuel (most commonly, en-
riched uranium) that has been
used to produce electricity. In
France, waste is reprocessed,
which is to say that plutonium
is extracted from once-through
waste to be used as fuel again.
While reprocessing might seem
to be more efficient than the
United States’ once-through
method, it actually produces
about six times the volume of
waste in the end, according to
the Institute for Energy and En-
vironmental Research.
The problem with all waste from nuclear reactors,
whether reprocessed or not, is that it is extremely ra-
dioactive—“high-level” waste in American legal jargon—
and neither the U.S. nor France, nor any country in the
world, has been able to construct a permanent disposal
facility capable of handling it. The only potential site for
such disposal in the U.S., Yucca Mountain, has been
declared dead by the Obama administration. With no
funding in this year’s federal budget, that proclamation
seems accurate, at least for the time being.
In the meantime, high-level waste in the U.S. is be-
ing diverted to a temporary two-step storage process.
First, the waste sits in cooling pools on site for about 10
years. Then, the cooled spent fuel is transferred to dry
storage in shielded concrete casks that, for now, remain
on site at the power plants.
While dry cask storage has been proven safe in
many rigorous government trials, the 10-year period in
which the highly radioactive spent fuel rods sit in cool-
ing ponds poses a potential terrorism risk. This is not
to say that the ponds represent a gaping hole in the
U.S. national security apparatus, but only that there are
more now than at any point in U.S. history and will only
become more in number with the construction of new
plants.
Indeed, in April at the 2010 World Nuclear Summit,
President Obama stated that nuclear terrorism is “the
single biggest threat to U.S. security, both short-term,
medium-term and long-term.” This statement appears
to be a direct contradiction to his recent move to revive
America’s nuclear industry. Speculation has circulated
that Obama’s support of nuclear energy was borne pri-
marily out of his need for Republican support for the
broader U.S. clean energy bill on the horizon. In light
of his statement at the nuclear summit, plans to expand
America’s nuclear energy industry after a three-decade
standstill in new plant construction and in the absence
of a permanent disposal facility for current and expected
waste, the President’s actions are puzzling. The politi-
cal capital argument does not
look as strong when the latter
considerations are taken into
account.
Several details emerge
from this nuanced examination
of nuclear energy. France’s nu-
clear industry deserves praise
for helping the country reduce
its GHG emissions and gain a
degree of energy autonomy.
Yet if concern for the environ-
ment is one of the primary
reasons to transition toward
nuclear energy, it would make
sense to take full account of its
own risks, not the least of which is nuclear waste. Simi-
larly, if security considerations are presented as primary
reasons for lessening dependence on a finite and for-
eign supply of energy, then adopting an energy source
that is more vulnerable to terrorist threats than any of its
renewable energy alternatives appears unwise.
Nuclear power may or may not have a place in our
energy future. But either way, the United States should
not rely on unexamined analogies to foreign energy sys-
tems to make the case for what will work best at home.
Doing so risks repeating the errors of our past: placing
faith in nuclear technology as a simple solution when
there are no easy answers.
Casey Coombs is pursuing a Master of Science in
International Affairs and Global Enterprise at the Univer-
sity of Utah. He will begin law school in Vermont in fall
2010.
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By Kevin Michael DeLuca, Hinckley Fellow, Hinckley Institute of Politics

China’s recent emer- powerful in China. So while

gence as a world power in the United States cor-
has been accompanied by porations have enormous
both admiration and con- power and use lobbyists
cern. Two areas of con- and campaign donations
cern are political partici- to gain inside access to
pation and environmental politicians and amplify cor-
protection. Too often ac- porate voices, while some-
tivism in China is neglect- times muting the voice of
ed in favor of lecturing the the public, in China corpo-
country about the need for rations are not an obstacle
democracy. Leaving aside to the people speaking
debates over forms of po- to the government. Sec-
litical governance, such a ond, a sense of “the com-
position ignores what is mons”—the idea that peo-
happening on the ground ple share crucial natural
in China. In contrast to and cultural resources (air,
Western stereotypes, water, parks, languages,
China is the site of many the Internet, biodiversity,
vibrant forms of activism. the oceans, and so on)—
This is especially true with remains strong in China.
respect to environmental In contrast, privatization
activism. has eroded the commons
In the West, activism in the United States, so
has revolved around con- corporations have the le-
cepts of the public and the gal right to pollute the air
public sphere. The public and water, claim copyright
sphere exists when peo- to words and ideas, con-
ple come together to talk trol access to the public
about general issues and airwaves, patent plants
express the opinions they and animals, and limit free
form. The Western public speech as public markets
sphere has been linked to are replaced by private
institutional forms of de- shopping malls. A strong
mocracy. China provides sense of the commons is
a fascinating example of a non-Western public sphere a vital foundation and incentive for public engagement
not linked to institutional democracy. Emerging in China and participation in the public sphere.
is a wild public sphere, wherein there are no guarantees Instead of neglecting environmental activist practic-
of institutional protection, but people engage in risky and es because China is not a democracy, it is more produc-
powerful conversations, protests, and activism. These tive to explore how environmental activism is practiced
conversations take place in all sorts of public spaces, in China and to understand how citizens practice form
ranging from historic Beijing parks to internet blogs. The publics that hold the government accountable and fo-
importance of these everyday conversations in multiple ment social change. In the space left, I will discuss en-
media of these wild public spheres is clear in the Chi- vironmental non-governmental organizations (ENGOs)
nese expression “ ” (“shui neng zai on the ground in China that through their activism are
zhou, yi neng fu zhou”) – the water carries the boat but constituting wild public spheres and transforming envi-
can also capsize it. The government is very aware of the ronmental practices in China.
power of the people, and thus out of necessity listens to Before 1994, China had no NGOs. By 2005, the
public opinion. number had exploded to approximately 2,000 NGOs
Two other characteristics of modern-day China also that were officially registered. Now there are around
amplify the power of the people. First, because of its 3500 NGOs. The oldest registered environmental NGO,
communist history, corporations are not particularly Friends of Nature, was founded in 1994. In the data-

**
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base “Chinese Environmental NGOs online,” 137 local
environmental NGOs are documented. In addition, there
are numerous grass-root organizations that are not of-
ficially registered but are an important part of the envi-
ronmental community in China.
ENGOs are spread across China. Almost every
province has one or more environmental NGO, with the
most in Beijing, which has 26 local ENGOs in addition
to international ENGOs like Greenpeace and the World
Wildlife Fund. Yunnan province, renowned for both its
biodiversity and ethnic diversity, is also home to many
ENGOs. These ENGOs work on a diversity of environ-
mental issues—including protecting water resources,
recycling, desertification, biodiversity, wetlands preser-
vation, animal protection, and so on.
ENGOs are diverse in organizational forms. There
are registered ENGOs, non-profit enterprises, unregis-
tered voluntary groups that function as ENGOs, unreg-
istered Web-based groups that operate mainly through
the Internet, student environmental associations, uni-
versity research centers, and government-organized
NGOs (GONGOs) established by government agencies.
These ENGOs perform a wide range of activities:
1) Environmental Information and Education
a. Green Kunming established an environmental
education group that provides draft teaching materials
for experts, residents, and students.
b. Friends of Nature (in Beijing) offers volunteer-
run programs in elementary schools in more than 10
provinces and autonomous regions that offer teacher
training programs in environmental issues.
c. Global Village of Beijing (GVB) collaborated with
the Ministry of Railways to reach out to passengers on
long distance train journeys with environmental educa-
tion messages.
4) Legal assistance
a. Center for Legal Assistance to Pollution Victims
conducts research on topics concerning environmental
law and enforcement.
5) Protests
a. Green Web Alliance (Beijing) promoted a 2004
online campaign to protect the Beijing Zoo. It attract-
ed the local media coverage and led to the shelving of
plans for the Zoo’s relocation.
b. Green Watershed protested against plans to
build dams on Nujing River and helped halt the plan.
As this list of activities suggests, ENGOs help form a
vibrant public sphere that has had an important impact
in China. ENGOs have helped lead an environmental
awakening in China, especially among young people.
In response to both public opinion and environmental
necessities, the Chinese government has implemented
policies designed to make China a world leader in wind
power, electric cars, solar panels, and other green is-
sues. ENGOs and the emerging public sphere in China
provide a new model of an engaged public and offer
hope as the world confronts environmental crises en-
dangering the earth.

2) Increase awareness/involvement through

activities/volunteering
a. GVB has been a major player in the “26 degree
campaign” that encourages businesses, government
offices, and families to save energy by setting their air
conditioners to no lower than 26 degrees Celsius during
the summer.
b. People participate in tree planting, recycling,
garbage collecting, and so forth.

3) Field work/research/connecting to the local

people
a. Pesticide Eco-Alternatives Center Yunnan Chi-
na (PEAC) develops alternatives to pesticides and elimi-
nates pollution caused by chemical sprays.
b. The Center for Biodiversity and Indigenous
Knowledge (CBIK) has worked to connect preservation
of biodiversity with protection of indigenous cultures.

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 5V[OPUN[V-LHYI\[H3HJRVM-LHY!
*SPTH[L*OHUNLHUK[OL-LHY+LÄJP[
By George Loewenstein and Daniel Schwartz
Climate change is an almost perfect example of
what economists call a “free rider problem.” Everyone
would gain if everyone made relatively minor sacrifices.
But the benefits of any one individual’s sacrifices are
spread over millions of individuals, including those in fu-
ture generations. No one is motivated to sacrifice and
everyone suffers. Nations also fall into this trap if acting
separately. End of story.
Yet, the explanation for our collective paralysis to-
ward climate change is not quite so simple. In times
of war, playing on patriotism, fear and hatred, nations
have managed to band together and elicit from citizens
and soldiers sacrifices far more profound than those that
would be required to reverse climate change. Now, hu-
manity faces a threat comparable to that of hostile hu-
man enemies, but, so far, nations have failed to exact
even the most modest sacrifices from citizens. Most
of us care profoundly about our children, and even our
children’s children; why are we so passive in the face of
a problem that poses such a dire threat to current and
future generations?
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plaining the failure of coordination between nations, psy-
chology is needed to make sense of the tepid demands
from citizens to even try. In this essay, we discuss some
of the psychological factors that have prevented the
emergence of a groundswell of support for taking action
on climate change. Climate change, we show, is not
only a perfect example of a free-rider problem, but also
of a threat that is unlikely to garner the level of attention
it warrants.
Human psychology and the ‘fear deficit’
The root of our collective complacency when it
comes to climate change lies in our failure to experi-
ence a level of fear that is commensurate with the se-
verity of the problem. When most people think about
the negative consequences of emotions, they are apt to
think of cases of excessive emotion – road rage, panic,
immobilizing depression. Yet many, if not most, of the
problems currently facing humanity stem from a deficit
rather than excess of emotion. Consider, for example,
the two stock market and housing bubbles and crashes
that wreaked havoc on world economies in recent de-
cades. In newspaper articles with headlines such as
“Fear Again Grips Stock Investors,” media accounts
have commonly attributed these events to a sudden,
self-fulfilling, spike in fear. Yet a more thoughtful analysis
could easily result in the opposite conclusion. While an
excess of fear may well have deflated the two bubbles, it
was an insufficiency of fear that allowed prices to get out
of line with fundamentals in the first place. With climate
change, a similar deficit of fear promises even more dire
consequences.
Why are we experiencing so little fear in the face of
an imminent (in the time-frame of human history) threat
to our collective existence? The answer to this question
is aided by a rudimentary understanding of the psychol-
ogy of emotions.
While most people think of emotions as feeling
states, psychologists are converging on a rather differ-
ent understanding of emotions -- as all-encompassing
‘programs’ of our minds and bodies that prepared us to
respond to recurrent situations of adaptive significance in
our evolutionary past, such as fighting, escaping preda-
tors and reproducing. , Fear, according to this account
of emotion, is an evolved response that fundamentally
transforms us as people to deal with threatening situa-
tions that we encountered repeatedly in our evolutionary
past. Fear activates specialized systems in our brains.
Beyond the subjective feeling of fear, our hearing and
sight become more acute; we become attuned to threat-
ening things we otherwise would not have noticed, our
memory sharpens, and there are myriad physiological
changes like gastric effects and adrenalin spikes.
Although emotions, including fear, serve critical
functions in human life, the emotion systems we are
carrying around evolved in a very different environment
than that of the present. Our appetitive system evolved
long before high fat foods became virtually free, our
sexual programming before the advent of internet por-
nography, and our pleasure-seeking system before the
development of crystal meth. Likewise, our fear system
evolved at a time when most of the people who mat-
tered for our survival were in our immediate proximity
and most of the hazards that threatened our survival
were relatively immediate, such as predators, enemies
and sudden changes in the natural environment. Our
fear system is not well equipped to dealing with the
most significant threats of the modern age that, like cli-
mate change, develop gradually and affect people we
will never meet.
Our fear system is adaptive. Hold any problem con-
stant for some period of time, and fear subsides, even
if the objective severity of the problem remains constant
or even grows gradually. Our fear system is designed to
motivate us to take action to eliminate imminent risks,
but when risks such as climate change remain constant
(or change imperceptibly) over time, our fear system
takes it as a signal that the persistence of fear serves
no function.
Our fear system is largely oriented to the present.
In part because our emotion system is so much more
responsive to immediate than delayed outcomes, we
‘discount’ the future, which helps to explain why so
many of us fail to diet or to save adequately for retire-
ment. Climate change entails a trade-off between im-
mediate sacrifices and long-term harms of exactly the
type that humans often have difficulty with. Democratic
governments may be in an even worse position than
individuals. The always-upcoming elections might dis-
courage them from putting strong effort into long-term
solutions.
Our fear system is also responsive to outcomes
that are tangible and ill equipped to deal with situations
in which the consequences of our behavior are imper-
ceptible. We eat one potato chip (and then one more
and one more) because any one potato chip has no im-
pact on our weight, and we smoke the next cigarette
because it is unlikely to be the one that kills us. This
‘drop-in-the-bucket effect’ comes into play in myriad
ways when it comes to climate change. What difference
would it make to turn the A/C down a few degrees? Of
course drops in the bucket add up, and eventually the
bucket overflows.
Adaptation, time discounting and the drop-in-
the-bucket effect are all features of our fear system
that squelch what might otherwise be a healthy fear-
response to climate change. Moreover, each of these
tendencies interacts in a pernicious fashion with another
psychological tendency: our highly developed ability to
see what we want to see and believe what we want
to believe. We are powerfully motivated (by time dis-
counting) to not make immediate sacrifices for climate
change, and our brains are remarkably adept at giving
us various rationalizations for (not) doing so. “Climat-
egate,” for example, provided welcome grist for skepti-
cism by a public who didn’t want to believe in global
warming in the first place. Since Climategate, belief that
climate change is happening and is manmade has de-
clined substantially in Britain, Germany and the United
States. The fact that multiple independent reviews failed
to turn up evidence of malice or fraud, or that ongoing
research has not shaken scientists’ belief in the reality of
the problem, has had comparatively little impact.
What can be done?
In a recent New Yorker article about Saul Griffith, an
ecologically-oriented inventor, David Owen writes that
“the world’s most urgent environmental need, he has
come to believe, is not for some miraculous-seeming
scientific breakthrough but for a vast, unprecedented
transformation of human behavior.” Unfortunately, such
a transformation is unlikely to occur. In the absence of
such a transformation, policy makers must, therefore,
work with people in all their psychological fallibility and
complexity. As Rousseau famously commented, we
need to “consider if, in political society, there can be any
legitimate and sure principle of government, taking men
as they are and laws as they might be.”
Some behavioral economists have proposed ‘nudg-
es’ to shift behavior in desired directions, and they
have caught the ear of world leaders such as Barack
Obama and David Cameron, both of whom count be-
havioral economists prominently among their advisors.
While nudges are helpful, and propel behavior in desir-
able directions with minimal disruption of freedom of
choice, they are unlikely to result in anything close to
the changes in individual and firm behavior necessary to
deal with the problem of climate change. For example, **
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 giving people information about other people’s electricity
consumption, an idea that Cameron has endorsed en-
thusiastically, has by now been tested on a large-scale
test, resulting in only a 3% reduction in electricity use.
Although significant, this type of ‘nudge’ by itself is un-
likely to make much of a dent in the problem of global
warming.
To have a serious impact on the problem of climate
change there is no way to escape the necessity for poli-
cies that either change prices (e.g., a carbon tax or cap
and trade) or involve regulation (e.g., far more stringent
café standards on automobile fuel efficiency as well as
new standards for residential and commercial construc-
tion). But how likely is it that such severe measures will
be implemented, given the psychological barriers just
discussed?
This is another important domain in which behavior-
al economics can play a constructive role. A carbon tax,
or cap and trade scheme, will result not only in dramatic
rise in the price of energy-intensive activities and hence,
hopefully, a reduction in energy use, but will also gener-
ate very substantial revenue streams. These revenue
streams hold the potential, such as it exists, to make
the medicine of price changes go down somewhat more
smoothly. Revenue streams could be used to reduce
other prices (ideally those associated with low emission
activities) – or even to offer tax abatements. Behavioral
economists should use their integrated understanding
of economics and psychology to design ways of return-
ing the revenue streams to people in ways that make
taxes and regulations more palatable.
In fact, the same psychological features that weigh
against constructive action to deal with climate change
can be exploited by policy-makers to increase the pal-
atability of substantive interventions. , If people dis-
count the future and ignore drops in the bucket, then
** use capital markets to deliver the dividend from future
6XPPLW carbon tax revenues in a substantial lump sum, up front.

If people adapt to ongoing situations, it can be predicted
that, perhaps after an initial uproar, they will adapt to a
change in relative prices that bring prices into line with
real costs, including environmental externalities.
Humanity stands immobilized at the brink of disaster
because climate change poses a perfect storm of not
only economic but also psychological impediments to
action. We may eventually experience a level of fear that
is commensurate with the severity of the problem, but
by that time it will probably be far too late to avoid catas-
trophe. In the absence of fear, citizens of nations are un-
likely to accept measures that entail significant personal
sacrifice. We need a skillful mixture of economics and
psychology to devise fiscal and regulatory interventions
that will change behavior and be widely accepted.
References
1 Weber, E. U. (2006). Experience-based and description-based perceptions of long-term risk:
Why global warming does not scare us (yet). Climatic Change, 70, 103-120.
Loewenstein, G., & Brest, P. (2009, July 12). Sunday forum: In defense of fear. Pittsburgh
Post-Gazette. Retrieved from http://www.post-gazette.com/.
Loewenstein, G. (2010). Insufficient emotion: Soul-searching by a former indicter of strong emo-
tions. Emotion Review (online at http://emr.sagepub.com/cgi/rapidpdf/1754073910362598v1).
Loewenstein, G. (2007). Defining Affect (Commentary on Klaus Scherer’s “What is an Emo-
tion?”). Social Science Information , 46, 405-410.
Cosmides, L., & Tooby, J. (2004). Evolutionary Psychology and the Emotions. In Handbook of
Emotions, 2nd Edition M. Lewis & J. M. Haviland-Jones, Editors. NY: Guilford.
McClure, S.M., Laibson, D.I., Loewenstein, G. & Cohen, J.D. (2004). Separate neural systems
value immediate and delayed monetary rewards. Science, 304, 503-507.
Rick, S. & Loewenstein, G. (2008). Intangibility in intertemporal choice. Philosophical Transac-
tions of the Royal Society B: Biological Sciences, 363, 3813-3824.
Loewenstein, G. (2006). The pleasures and pains of information. Science, 312, 704-706.
Rosenthal, Elisabeth, “Climate fears turn to doubts among Britons.” New York Times, May 24,
2010, Page A1.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving decisions on health, wealth, and
happiness. New Haven, CT: Yale University Press.
http://www.ted.com/talks/david_cameron.html.
Ayres, I., Raseman, S., & Shih, A. (2009). Evidence from two large field experiments that peer
comparison feedback can reduce residential energy usage (NBER Working Paper 15386).
Cambridge, MA: National Bureau of Economic Research.
Alcott, H. (2009). “Social Norms and Energy Conservation.” Working Paper, MIT.
Loewenstein, G., John, L.K., & Volpp, K.G. (forthcoming). Using Decision Errors to Help People
Help Themselves. In Eldar Shafir (Ed.). Behavioral Foundations of Policy. New York: Russell Sage
Foundation Press.
Loewenstein, G., Brennan, T., & Volpp, K.G. (2007). Asymmetric paternalism to improve health
behaviors. Journal of the American Medical Association. 298(20), 2415-2417.
**
6XPPLW


 (4LJJHMVY4PSP[HU[Z;OL+L]LSVWTLU[VM
0U[LYUH[PVUHS;LYYVYPZTPU7LZOH^HY7HRPZ[HU
By Ashley Edgette, Hinckley Scholar, Hinckley Institute of Politics
Peshawar, Pakistan, a modern region of violence
and militancy, has been a major proponent in one of the
most problematic global issues of this era: international
terrorism. Examining the environment in which this type
of militancy began and how it incurred is vital to under-
standing how to assuage the issue as it stands today
**
6XPPLW

and how to further develop peaceful conditions in the
future.
The proxy war between Afghanistan and the USSR
during the late 1970s was a major instigator in the pro-
liferation of terrorism within the northwestern region of
Pakistan. Although Pakistan was not directly involved in
the war, the side effects from it in terms of the popu-
lation, economy, social and political constructs were
drastic. This time period is a microcosm of how cross-
national and cultural conflicts affect surrounding regions
and cause mass instability for a multitude of the popu-
laces involved rather than just those in direct conflict.
The call to Jihad brought more than 35,000 Muslim
warriors to Peshawar from 1979 to 1989. With this influx
came an abundance of domestic issues that permeate
not only Peshawar but also Pakistan to this day. Criminal
and sectarian violence began to rise, education became
the site of militant training, Afghan refugees flocked
across the border, and illegal trade exponentially grew
during this time frame.
Paranoia permeated Peshawar as militants and refu-
gees flooded the city. The conflict that had begun earlier
between Islamic sects was exacerbated by the culture
of violence that spawned from CIA and jihadist influence.
Citizens were no longer safe to walk the cobbled streets
of their own city. A once pulsating marketplace now sup-
ported more black market trade than fresh produce and
congregations of foreign mujahideens were more likely
to be seen perusing the merchandise than mothers with
their children.
This instability stimulated the growth of anti-Amer-
ican sentiment within Peshawar. Out of frustration and
a lack of personal safety Peshawar citizens began to
form jihadist movements of their own based on the suc-
cesses of the Afghan Mujahideens. Anti-Sunni, anti-
Shi’a, anti-democratic and anti-Indian militancy sprang
up all over Peshawar. The goals of these nascent terror-
ist organizations ranged from the liberation of Kashmir to
the installation of a Pashto government in Afghanistan.
Lashkar-e-Toiba (LeT), Jaish-e-Mohammed (JeM), Hara-
tiat-ul-Mujahideen (HuM) and Harkat-al-Jihad-al-Islami
(HJI) were just some of the terrorist organizations born
during this period, reaping the benefits of government-
funded militancy and CIA-based training.
The education system within Peshawar had be-
come radicalized by the militant upsurge in the city as
well. Throughout the 1980s madrasas that promoted
militancy and the Islamic jihad sprung up all along the
Afghan-Pakistan border. This was catastrophic for the
northwestern frontier’s youth who saw madrasas as pand and circulate within illegal markets. Crime lords
the only escape from their economically disadvantaged and militants lived off the fat of illegal trade while decent
situation within the poverty-stricken region. The system citizens could not afford to feed their families because
served two causes: it brought starving youth from all most legitimate trade left the city.
over the Afghani and Pakistani countryside to Peshawar Peshawar had become known as a criminal
for a chance to be fed, clothed and housed for free, and supercenter. The degeneration through proximity in Pe-
it indoctrinated them with a militant mindset. Pakistan, shawar exemplifies how interrelated economic, social
Saudi Arabia and the CIA promoted this mindset as well and political systems can inflame instability and create
as other nations that were actively supporting state- conditions conducive to militancy. Acknowledging the
sponsored militancy demanding complexities of these situations when con-
These madrasas became militant-recruiting centers sidering foreign policy may help avoid great violence.
where children were taught the Quran alongside radical Peshawar reacted against the stifling flow of violence
theories of Islamic Jihad. The extremism fostered there and the clash of civilizations that beleaguered the city. If
was a major cause of the fundamentalist attitudes that the global community can begin to understand the inter-
permeate Peshawar to this day. An entire generation connectedness of cities’ support systems in the context
of Pakistani Muslim youth was taught that death in the of global affairs, then the globe might no longer dread
name of Allah against the infidels was the greatest good the nihilism of international terrorists. Peshawar is not
they could hope to achieve. Because of this indoctri- singular in misfortune but rather a city among throngs
nation Peshawar became a mass producer of suicide of cities affected by global irresponsibility. In an age of
bombers, mujahideens, Taliban and Al Qaeda members global interaction, cultural conflict is becoming more
for the next decade. The schools provided a haven for prevalent and nowhere can it be seen in its true blood
fundamentalist ideology as well as impoverished and red more intensely than Peshawar. These new global
displaced Afghani and Pakistani youth. dynamics of cultural intrusion must be acknowledged
Students were not the only Afghanis fleeing by foreign nations as they interact with one another or
their homeland. Post-Soviet invasion, two million refu- there may be a new precedent set in the bacterial evolu-
gees entered the Peshawar region swelling the popula- tion of global militancy.
tions eight fold. The influx of refugees was hospitably
received in the northwestern frontier region where there Ashley Edgette is a Salt Lake City native who will
was a large populace of Pakistanis with Pashto heritage. graduate from the University of Utah with degrees in
The UN High Commission of Refugees (UNHCR) cre- political science and environmental studies and a minor
ated 350 camps of 10,000 inhabitants in the Peshawar in French. She plans to pursue a Ph.D. in city planning
region. These camps overcrowded city centers, spread and policy.
into the unregulated FATA region and caused innumer-
able infrastructural issues for the Pakistani and local
Peshawar government. Peshawar citizens complained
of inflated housing prices, a rise in the illegal trade of
opium and an overall degradation of law within the city.
In Peshawar, the refugees’ presence heightened the
crime rate, the tension between sectarian groups and
enrollment in madrasas, militant involvement and illegal
trade.
By the end of the 1980s the heroin trade and
addiction had vastly increased in Peshawar. There were
more than 1 million heroin addicts in Pakistan and labs
had begun to spring up all over the city centers. The
bulk of rising production came from ramshackle labs
strung across the contentious Afghan-Pakistan border
region. Using the instability of the FATA region as a trade
route and base camp, growers, traders and smugglers
worked within Peshawar in a rising grey market free of
fear. This trade created an underground upsurge in the
Peshawar economy in which conspicuous money, that
could not enter the legitimate economy began to ex-

**
6XPPLW


 +LJSPUPUN)PVKP]LYZP[`!
,JVUVTPJ+PZJYLWHUJPLZHUK*VVWLYH[P]L:VS\[PVUZ
By Lauren Hansen, Hinckley Scholar, Hinckley Institute of Politics

For the past century, free-trade and economic growth through the exploitation of natural resources. This per-
have overridden any claims that have been made for the ception has continued, and today it is estimated that as
preservation of the natural environment, all in the name high as 30,000 species go extinct every year.
of progress. However, this environmental abuse has re-
cently been brought to the forefront with claims of global
warming and species disappearing daily, never to return.
Annual species extinctions have increased exponentially
from six in 1950 to 10,000 in 1990, and the rise in glo-
balization and extinction rates is not coincidental. Some,
such as Richard Leakey and Roger Lewin, have gone as
far as to call this the “sixth extinction,” comparable with
the extinction of dinosaurs and other species at the end
of the Cretaceous period. In this case though, species
are being annihilated by the economic growth and over-
consumption by humans rather than natural disasters
such as volcanoes and meteors.
There has been an accelerated decrease of species
diversity, as well as cultural diversity, as modernization
and globalization become more prominent goals for
countries. Economic liberalism and globalization have
become suspects for increases in the extinction of spe-
cies across the globe. The case against unregulated
trade and economic expansion has been made well by
those who are opposed to these ideals, showing that
environmental standards are often tossed aside for prof-
its. There is an impact from the loss of biodiversity that
affects the surrounding environment, and this should be
considered along with any economic gains.
Currently, there are a little over 1 million species
known to our planet, with approximately 15,000 new
species being discovered annually. Biodiversity is divid-
ed across different communities, climates, and habitats,
but it is clear that communities and biota interact with
each other in a way that intrinsically connects species
to each other. The Gaia Hypothesis proposes that all
ecosystems on the planet are interdependent and work
together as a whole, and that individual ecosystems
are maintained by the interactions of individuals within.
This creates a different perspective concerning the im-
portance of biodiversity. In order for the ecosystem to
be truly viable, entire systems need to be appreciated
rather than just individual species. Economic gains are undermining the simple beauty
Extinction is an accepted fact of life, and the natural and value of biodiversity, placing an emphasis on short-
background extinction rate is calculated to be one spe- term profits instead. Habitat loss from deforestation
cies in every four years. However, the rise of humans and other economic practices that abuse land is con-
as the dominant species has been accompanied by a sidered to be one of the major factors in the increase
drastic increase in species extinction. Large extinctions of species extinction. The World Trade Organization
of biota could be seen throughout the Pacific Islands as has also forced the United States to go against envi-
they were populated during the last 1,000 years. This ronmental measures put in place for the protection of
trend continued with European colonization starting in sea turtles, claiming these protective measures create
** the 17th Century as focus shifted to economic gains discriminating trade practices. Multinational corpora-
6XPPLW


tions outsourcing to countries with less stringent envi-
ronmental controls create a situation where there is less
incentive for environmental protection due to economic
gains that can come from environmental degradation.
This can then lead to overconsumption, which causes
increases in acid rain and decreases in the availability of
fresh water supplies.
Changes must take place in the system that allow
for progress to be made in areas of environmental pro-
tection. Some have tried to do this by placing an eco-
nomic value upon species and habitat. However, the
commodification of species for medicinal use and other
purposes can only be part of the solution, and will prove
to be very costly if employed alone. Value also needs to
be placed upon species’ worth to an ecological system
seen as an organic whole.
While economic liberalism has created many of the
environmental problems that exist today through un-
regulated fair trade, institutional liberalism offers some
of the solutions through international agreements and
cooperation. Some success has been found in these
areas, especially with the Convention on International
Trade in Endangered Species (CITES), the Montreal
Protocol and incentive structures that offer economic
benefits for sustainable development. Continued co-
operation will be needed to prevent further degrada-
tion of the environment. No nation is exempt from CO2
emissions and other environmental concerns that reach
across borders. Rather, nations need to work together
for the preservation of habitat that is so essential for bio-
diversity, and international institutions provide essential
forums for solutions to reach a collective good through
cooperation.
Much can still be done for the preservation of biodi-
versity. Ecotourism and biological corridors throughout
Latin America have helped preserve habitat in species-
rich ecosystems that are still economically beneficial.
Land trusts and conservation easements also allow
for the preservation of habitat and offer economic ad-
vantages through tax incentives. The preservation of
habitat is essential to the recovery and sustainability of
a species, as has been shown by the successes of the
Huai Kha Kheang and Thung Yai Wildlife Sanctuaries in
Thailand in stabilizing declining tiger populations. Ma-
rine preserves off the coast of Belize have also allowed
for thriving coral reefs and recovering fish populations in
an area heavily affected by human activities.
Once species and diversity are lost, they can never
be recovered. Our world consists of “endless forms
most beautiful and most wonderful,” with each species
having distinct characteristics and genetics that can be
found nowhere else. We are intrinsically, explicitly linked
to the environment around us, and this is becoming
more apparent as humanity becomes more connected
through globalization. It is everyone’s responsibility to
realize that changes must happen before it is too late
and the species that are such an essential part of our
existence are gone.
Lauren Hansen graduated from the University of
Utah with B.S. degrees in Political Science and Anthro-
pology. She has served Hinckley Institute of Politics in-
ternships with the U.S. Mission to NATO, Utah’s Office
of the Governor and Utah Open Lands.
**
6XPPLW

 9LJVTTLUKH[PVUZMVY4HSHYPH*VU[YVS
7VSPJ`PU:\I:HOHYHU(MYPJH
By Jacob Lindsay, Hinckley Scholar, Hinckley Institute of Politics
By the time you finish reading this sentence a child in
Africa will have died of malaria. As disheartening as this
may be, the true tragedy of this death is that malaria is
a treatable disease. Anti-malarial pills cost only $1 USD
per treatment. Cheap secondary combatant methods
such as mosquito spraying and the use of bed nets have
also significantly lowered infection rates. The only step
left in defeating this ancient disease is locating the fund-
ing to make these treatments universal.
In this time of economic recession, funding for glob-
al health should be maintained. While celebrity-based
aid agencies, private corporations and The Global Fund
have made admirable efforts to fight malaria, the Unit-
ed States President’s Malaria Initiative must lead out in
bringing an end to this terrible disease.
The Weight of Malaria
Economists at the Roll Back Malaria partnership
have estimated that malaria is responsible for a yearly
drain of 0.25-1.3 percent on the GDP of several African
countries. This significant drain on resources prompted
the United Nations to add “Combat HIV/AIDS, Malaria
and Other Diseases” to its Millenium Development Goals
in 2000. At that time the World Health Organization re-
leased a report estimating that the hypothetical elimi-
nation of malaria in 1965 would have increased the to-
tal GDP of Sub-Saharan Africa in 2000 by 32 percent,
equal to $100 billion USD. Another estimate issued dur-
ing this time stated that “40 percent of public health ex-
penditures, 30-50 percentof inpatient admissions, and
up to 50 percent of outpatient admissions” were malaria
related.
The President’s Malaria Initiative
On June 30, 2005, President George W. Bush an-
nounced a new program that expanded the funds dedi-
cated to fighting malaria in Sub-Saharan Africa. This
** program was called the President’s Malaria Initiative
6XPPLW

(PMI) and operated under the umbrella of the United
States Agency for International Development (USAID).
The initial total of committed funds was $1.2 billion USD,
spread out over five years, or approximately $240 mil-
lion per year. This total is commendable, considering
that USAID allocated only $10.9 million USD to malaria
programs in 1997. The general goal of the PMI is to
reduce current levels of malaria deaths by 50 percent in
15 Sub-Saharan countries.
What is The United States
Global Heath Budget for 2010?
On May 9, 2009, President Barack Obama an-
nounced his budget allocations for global health initia-
tives for the 2010 fiscal year. The total global health
budget for 2010 is $8.6 billion USD. This is an increase
of approximately a half a billion dollars from 2009. The
President’s Emergency Plan for Aids Relief (PEPFAR)
program will receive approximately $6.6 billion USD.
This is an increase of about $.165 billion USD, 3 per-
cent over the 2009 budget. Funding for the PMI will be
increased by $200 million USD in 2010 to a total of ap-
proximately $762 million USD. This is an increase of 36
percent over the 2009 budget.
How Can PMI Use its Resources
More Efficiently?
During this time of global recession, everyone is look-
ing to lower expenditures. Cutting the budget for global
health, however, doesn’t mean just lost jobs; it means
lost lives. As an alternative to diverting funds, PMI must
set the standard for using malaria funding more efficient-
ly and more effectively. As performance goals for the
countries affected are met more often and at a lower
overall cost, other funding agencies will be inclined to
adopt these changes.
Focus on Smart Aid
When giving aid to Africa, foreign governments have
a tendency to give finished products directly to the peo-
ple. This puts many local producers out of a job. Manu-
facturing plants producing bed nets in America can easi-
ly undercut start-up groups in Africa. PMI administrators
and leaders of associated non-profit organizations must
remember that the funds combating malaria should not
be used just to heal bodies. These resources should be
used to also heal national economies.
When considering the destination of funding for
combating malaria, American organizers should give re-
sources first to local producers. This includes the pro-
duction of medication, bed nets, spraying equipment,
chemicals and education to promote behavioral change.
A conscious decision to stimulate local production will
spark additional development of African infrastructure.
Increase Cooperation between
Non-profit Organizations
Information about malaria prevention and treatment
is not a secret; knowledge regarding the local applica-
tion of that information, however, is tightly controlled.
The quirks of any culture may prevent the implemen-
tation of a certain strategy. For instance, it is a com-
mon misconception in Equatorial Guinea that mosquito
sprays make men sterile. Organizations are reticent to
share this information with others because it gives them
an edge in the acquisition and renewal of their grants.
In the end, this competition causes a decline in the
quality of services as organizations hoard information
from their rivals. A change in organizational struc-
ture is necessary. Renewal of an organization’s grant
should not be determined by individual performance
only. Rather, all organizations operating in a particular
region should be reviewed together. Performance goals
should be set for the group of organizations at the be-
ginning of the project. If the group as a whole meets its
goals, all of the contracts should be renewed. This will
provide the incentives necessary for the groups to share
their life-saving information, improving the overall quality
of care for the native population. As groups begin to co-
operate with one another and coordinate their activities
in monthly meetings, redundancy costs from research
and development can be decreased significantly.
Continued Support of Global
Health bring Initiatives
During this time of economic recession there is the
tendency to turn inward and forget about the suffering
of others in distant countries. The Obama administra-
tion should be commended for its continued support of
malaria control in Africa. The President’s Malaria Initia-
tive has made admirable contributions to the campaign
against the disease over the past decade, but continued
policy revisions are still necessary. By improving these
processes, the world might someday see the elimina-
tion of malaria.
Jacob Lindsay graduated from the University of
Utah in 2010 with a B.A. in international studies and an
Honors B.A. in English literature. During the summer
of 2009 he completed a Hinckley Institute of Politics in-
ternship in Washington, D.C., with the non-profit organi-
zation Medical Care Development International.
**
6XPPLW

 (MYPJHU0UKL_LZ-HSS:OVY[
By Sheldon Wardwell, Hinckley Scholar, Hinckley Institute of Politics
Much like rankings of sports teams or universities, a
new trend in world politics is ranking how well govern-
ments perform. In Africa, two different ranking systems
compete to measure this: the Mo Ibrahim Index of Af-
rican Governance and Harvard’s Strengthening African
Governance. Both indexes were originally one and the
same, funded by Mo Ibrahim, a Sudanese telecoms
entrepreneur, and ran at Harvard’s Kennedy School of
Government. However, disagreements over control led
the Harvard index to split off.
Essentially, these publications provide countries with
a report card for the world to see. The core “curriculum”
includes six important public goods that people gener-
ally expect from government: safety and security, rule
of law, transparency and corruption, participation and
human rights, economic development and human de-
velopment.
Similar to a transcript, index
rankings can have serious con-
sequences on livelihood. Just
as students may be rejected
from a school or career by failing
to display their abilities to per-
form, a country may be denied
development aid and foreign in-
vestment. This is because of the
fact that outside countries make
decisions about allocating funds
based on governance perfor-
mance.
With such value being placed on country perfor-
mance, the accuracy of the indexes must be rigorously
checked. Alarmingly, doing so reveals just how vulner-
able the current grading method is to errors. A study
on the 2009 indexes done at the Rwanda Governance
Advisory Council (RGAC) revealed three major short-
comings.
The first deals with evaluation frameworks. Although
both indexes assess countries in the same areas, differ-
ent indicators, grouping and weighting, cause significant
discrepancies. For instance, the RGAC compared the
results of each index when used to rank the five East
African Community (EAC) countries on rule of law, trans-
parency and corruption. The Mo Ibrahim index places
them as, 1) Uganda, 2) Tanzania, 3) Burundi, 4) Rwanda,
and 5) Kenya, while Harvard places them as, 1) Tanza-
nia, 2) Uganda, 3) Kenya, 4) Rwanda and 5) Burundi.
The variations result from different measuring frame-
works. While Harvard uses three subcategories and
seven indicators for this topic, Mo Ibrahim uses two
subcategories and 12 indicators. The inconsistent re-
sults demonstrate how scores and ranks can become
seemingly arbitrary with changes in framework.
** The second issue deals with data errors and unjusti-
6XPPLW

fied data. For publications of such vast nature—pub-
lished by institutions of limited resources, spanning 53
countries and employing several dozen indicators and
sources—safeguarding against error is one of the great-
est challenges.
One example found in the RGAC study deals with
the UN Sanctions Indicator. To measure whether a
country is in gross violation of international law or not,
countries are awarded either a “100” for “no sanctions”
or “0” for “sanctions imposed.” In both 2009 indexes,
Rwanda received a 0.
The Mo Ibrahim Index claims in its methodology
that “any country that had sanctions lifted in a year was
awarded a score of 100. The latest available coding
year was 2008. However, UN Security Council Resolu-
tion 1011(1995), the sanction against Rwanda, was en-
tirely dismissed as of July 10, 2008.
Harvard’s index arguably
cleared itself by stating it used
2007 data for this indicator, at
which time two paragraphs of
the sanction remained. How-
ever, the remaining paragraphs
were merely in place to stop the
flow of weapons to nongovern-
mental groups in and around
Rwanda, and were not reflective
of a gross violation by the gov-
ernment.
The mistake within the Mo
Ibrahim index clearly sabotaged Rwanda’s overall evalu-
ation score. With the correction, Rwanda’s rule of law,
transparency and corruption sub-score goes from 47 to
55.3, shifting it from fourth place to second place within
the EAC.
The final issue deals with the use of obsolete data.
As they are labeled 2009, one might assume the in-
dexes would be using data from that year, or at least
2008. However, glancing into the reports reveals that
most data is from 2007, two years prior to publication.
This means that the rankings in the 2009 indexes are in
reality the 2007 rankings.
For a country like Rwanda, widely regarded as an
African success story in recent years, the reporting of
obsolete data often obscures improvements. This is the
case with the Ratification of Core International Human
Rights Conventions indicator, used by Harvard, which
places Rwanda last within the EAC.
Actual 2009 data, as identified by the Office of the
United Nations High Commissioner for Human Rights
(OHCHR), proves otherwise. Since 2007, considerable
changes in the number of conventions ratified by EAC
countries occurred and an additional international con-
vention was written, bringing the total to eight. Rwanda
ratified three conventions during this period, raising its
score and rank under this indicator from 66.7 (tied for
last) to 100 (tied for first).
Despite these shortcomings, however, the self-pro-
claimed “works in progress,” as the indexes admittedly
call themselves, are an important asset to global poli-
tics. To further this impact in the future, the two indexes
could coordinate on measurements and data collec-
tion to avoid confusion or seemingly arbitrary results.
Perhaps, as methods continue to improve, they could
ensure against data errors and speed up processing, re-
porting on countries in a timelier fashion, or in the least,
calling data what it is.
Sheldon Wardwell graduated from the University
of Utah in 2009 with a B.S. in Political Science and an
International Relations Certificate. In the fall of 2009,
Wardwell returned to East Africa for the second time,
where he researched African Indexes as an intern for
the Rwanda Governance Advisory Council. During this
period Wardwell also travelled to South Sudan where he
conducted interviews for an article he is co-authoring
regarding the International Refugee Regime. Current-
ly, Wardwell is working for a non-profit organization he
founded and will be applying to law school to begin in
2011.

Table 1
UN Sanctions Indicator with Error

Rwanda Tanzania Kenya Uganda Burundi

UN Sanctions 0 100 100 100 100

SC1: Rule of Law Sub-Score 42.1 61.3 57.6 73.7 61.5

Rule of Law, Transp. and Cor. Sub-Score 47.0 55.0 45.9 61.3 48.0

Table 2
UN Sanctions Indicator Adapted without Error

Rwanda Tanzania Kenya Uganda Burundi

UN Sanctions 100 100 100 100 100

SC1: Rule of Law Sub-Score 58.8 61.3 57.6 73.7 61.5

Rule of Law, Transp. and Cor. Sub-Score 55.3 55.0 45.9 61.3 48.0

Table 3
Ratification of Core International HR Conventions

Rwanda Tanzania Kenya Uganda Burundi

*Ratified Conventions (2007) 5 5 6 7 6

Associated Score 66.7 66.7 83.3 100 83.3

**Ratified Conventions (2009) 8 6 7 8 6

Associated Score 100 75 87.5 100 75

*From Harvard’s Strengthening African Governance Index 2009 report (out of 7)

**Latest available data from www.ohchr.org as of November 16, 2009 (out of 8) **
6XPPLW


 *OHSSLUNLZMVY.SVIHS/LHS[O!)\YKLUZVM+PZLHZL
HUK[OL4PSSLUUP\T+L]LSVWTLU[.VHSZ
By Leslie Francis, Professor, University of Utah S.J. Quinney College of Law

Global challenges of health and health care remain
enormous. Despite considerable progress in some re-
spects—for example, the noteworthy increases in ac-
cess to HIV treatment in areas of sub-Saharan Africa—
overall burdens of disease remain concerningly high.
Progress on Millennium Development Goals set by the
United Nations for achievement by 2015 has been at
best uneven. Rates of diseases of relative affluence such
as diabetes are growing world-wide and polio is resur-
gent. The recently-implemented World Health Regula-
tions hold promise, but resources to implement them
remain problematic as the costs of health care rise.
In September 2000, world leaders meeting at the
United Nations adopted eight Millennium Development
Goals to be achieved by 2015. The overall aim of the
goals is the eradication of extreme poverty; three of the
eight deal directly with health-related matters and the
remainder address infrastructure questions such as ed-
ucation that indirectly contribute to the improvement of
health.
Millennium Goal 4 is to reduce the mortality rate of
children under the age of five by two-thirds of its level
in 1990. In 2006, for the first time, the absolute num-
bers of young child deaths dipped below 10 million and
had reached 9 million by 2007. However, death rates
remained stagnant or worsened in 27 countries, and de-
clined too slowly in 62 countries to meet the Millennium
Goal. Primary causes of child mortality remain malnutri-
tion and infectious disease. Notable successes include
the “Nothing But Nets” campaign to encourage the use
of insecticide-treated bed nets against malaria, and the
Measles Initiative, which through vaccination has re-
duced mortality from measles in Africa by over 90 per-
cent. In Bangladesh in 2006, more than 33 million chil-
dren were vaccinated against measles in just 20 days.
A second health-related Millennium Development
Goal is achieving universal access to reproductive care
and reducing maternal mortality rates by three-quarters
from 1990 levels. Sadly, maternal mortality rates have
declined by a mere 1 percent annually since 1990, far
below the approximately 5 percent needed to reach the
Millennium target. In sub-Saharan Africa, progress has
been especially slow. A chronic problem remains the
lack of access to family planning services, especially in
sub-Saharan Africa, poorer households in Latin Ameri-
can and the Caribbean and in the transition countries
of south-eastern Europe. In these regions, pregnancy
rates remain especially high among adolescents, a de-
mographic group at greater risk for complications in
labor and delivery. Donor contributions to family plan-
ning services have decreased by 50 percent or more in
many of these areas during the past 10 years. In many
refugee camps, particularly in Bangladesh, Zambia and
Chad, fewer than 20 percent of women have access to
professionally trained attendants during childbirth.
The third health-related Millennium Development
Goal is to halt and reverse the spread of HIV/AIDS.
Here, there is genuine success to celebrate. Improve-
ments in prevention programs have reduced the spread
of HIV and death rates have declined with increasing
access to HIV treatment. South Africa, a country with
high incidence rates of HIV and a well-known history of
denial, has recently undertaken a dramatic new program
of education, testing and treatment, highlighted by Pres-
ident Jacob Zuma’s public announcement of his own
negative test. The 2009 Millennium Development Goals
report notes, however, that rates of infection have con-
tinued to increase in Central Asia and Eastern Europe.
A continuing source of controversy is the role of intel-
lectual property protections in the price of antiretroviral
drugs. Spurred by efforts of non-government organiza-
tions (NGOs) such as the William J. Clinton Foundation
and Médecins sans Frontières, pharmaceutical compa-
nies have negotiated tiered pricing schedules for HIV
drugs. Competition from generic manufacturers such
as the Indian corporation Cipla also has driven prices
downward. Since 2005, however, developing nations
who are members of the World Trade Organization
(WTO) have been required by TRIPS (the Agreement on
Trade Related Aspects of Intellectual Property Rights)
to issue patents, and pharmaceutical companies have

**
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been relatively aggressive in exercising their rights under
TRIPS. Under TRIPS, there are two ways for develop-
ing nations to avoid these patent protections. “Volun-
tary” licenses may be negotiated with patent holders to
allow the import or production of cheap generics, but
negotiating these depends on the good will of the pat-
ent holder. “Compulsory” licenses may also be issued
in cases of severe health emergencies; this strategy has
been employed by Thailand and Brazil, but not without
threats of repercussions from pharmaceutical compa-
nies.
Perhaps one of the greatest ironies in health sta-
tus worldwide is the replacement of diseases of poverty
by diseases of affluence. The World Health Organiza-
tion (WHO) estimates that 220 million people worldwide
have diabetes and that the number can be expected
to double within the next 20 years. Over 80 percent of
diabetes deaths occur in lower and moderate income
countries. In 2006, the United Nations declared Novem-
ber 14 “World Diabetes Day” and encouraged member
nations “to develop national policies for the prevention,
treatment and care of diabetes in line with the sustain-
able development of their health-care systems.” Just
recently, India was surpassed by China as the “world
diabetes capital,” a dubious distinction indeed.
Another recent and important development in world
health is the entry into force of the new World Health
Regulations in 2007. The regulations provide for broad
responsibilities of public health surveillance, on the part
of both developed and developing countries. Although
SARS, avian influenza (H5N1) and last year’s swine flu
(H1N1) have largely faded from public attention, con-
cerns about rapid and world-wide spread of infectious
diseases remain. When people may be infected and
travel before they show symptoms of illness—as is true
with influenza, for example—strategies of closing bor-
ders may be too late, even for island nations such as
Britain. Under the regulations, all states parties are re-
quired to report to the WHO public health emergencies
of international concern. By 2012, all states parties are
to have in effect “the capacity to respond promptly and
effectively to public health risks and public health emer-
gencies of international concern.” All measures are to
be conducted transparently and without discrimination;
the regulations recognize the importance of protecting
human rights in their implementation. The regulations
also require countries to collaborate in mobilizing the fi-
nancial resources needed to meet these responsibilities.
Despite implementation of the regulations, public
health infrastructures remain minimal at best in many
areas of the world. Too often, strategies for promot-
ing health have targeted specific diseases rather than
building health care capacities more generally. The
eradication of smallpox represents a great success, but
perhaps not a strategic ideal. The effort to eradicate
polio, while tantalizingly close to realizing its goal, has
more than once been thwarted by new outbreaks of dis-
ease, particularly in Nigeria. Recognizing the wisdom of
broader public health strategies, the Gates Foundation
has just announced a shift in its strategy against polio:
disease-specific campaigns can only succeed if they
are accompanied by overall improvements in health in-
frastructure. This is the hope—and the challenge—of
the Millennium Development Goals.
Leslie Francis, Ph.D., J.D., is a Distinguished Pro-
fessor of Law and Philosophy and Alfred C. Emery Pro-
fessor of Law at the University of Utah. With colleagues,
she is the author of The Patient as Victim and Vector:
Ethics and Infectious Disease (Oxford University Press,
2009). She currently serves as co-chair of the Security,
Privacy, and Confidentiality Subcommittee of the U.S.
National Committee on Vital and Health Statistics.
**
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 .SVIHS:LJ\YP[`·(U(UHS`ZPZ4V]PUN-VY^HYK
By Amos N. Guiora, Professor, University of Utah S.J. Quinney College of Law
The contemporary challenges confronting decision
makers on domestic and global issues alike are extraor-
dinary. To name but a few, these include religious ex-
tremism, terrorism, piracy, economic uncertainty, nucle-
ar threats, public health crises and ethnic and regional
strife. Resource prioritization, cost-benefit analysis, per-
ceived national interests and risk analysis are essential
to determining when, how and whether to respond to
each threat. Precisely because the stakes are so high,
and the missteps fraught with danger, a sophisticated
understanding of geo-politics is essential to developing
strategic-based national security policy.
While different nations may—and naturally do—dis-
agree regarding strategic and tactical dilemmas, funda-
mental similarities are essential to minimizing risks. As
the pages of history unequivocally demonstrate, conflict
is an inevitable reality; however, world order is signifi-
cantly enhanced by proactive conflict diffusion as dis-
tinct from reactive conflict resolution.
This tension—proactive contrasted with reactive—
is particularly acute with respect to global security and
** terrorism and specifically in how Iran’s nuclear threat is
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addressed. Addressed as if negated because a nuclear
Iran would significantly endanger global stability, that is
invariably tenuous locally, regionally and internationally.
While the dilemmas listed above also pose significant
threats requiring international attention, they do not
present existential danger that a nuclear Iran would.
While other nations possess nuclear capability, that
does not justify the international community’s acquies-
cence. The fact other nation-states possess nuclear ca-
pability does not justify Iran’s development precisely be-
cause Iran was not threatened prior to development of
its nuclear program. Chamberlin’s black umbrella in the
face of Hitler’s threats is best kept in the closet of his-
tory. Simply put, the imminent threat posed by a nuclear
Iran raises significant questions regarding lawful levels of
preventive self-defense.
International security is enhanced by nuclear disar-
mament; international instability is increased by nucle-
ar armament. Time will tell whether President Barack
Obama’s concerted efforts to reduce nuclear weap-
ons on a global scale will significantly reduce the threat
posed by nuclear armament and will act as a powerful
catalyst in directly contributing to powerful, uniform and
direct pressure on Iran to discontinue its nuclear devel-
opment program.
In the meantime, the world faces a very clear and
direct challenge to security and stability. That is, while
concrete, positive risk-minimization measures are taken
with respect to nuclear weapons, Iran’s determination to
become a nuclear power directly confronts, if not chal-
lenges, international security and stability. After all, Iran
has consistently—and directly—threatened Israel and
other Western nations, including the U.S.
 According to the United Nations’ Charter (Article 51)
“Nothing in the present Charter shall impair the inherent
right of individual or collective self-defence if an armed
attack occurs against a Member of the United Nations”.
The critical—and controversial—word is “if”; simply put,
according to the Charter, a nation state cannot exercise
its right to self-defense until attacked.
While the phrasing reflects both the horrors of World
War II and a conscious, proactive effort to minimize con-
flict in an effort to enhance stability, the Iranian threat
challenges the practical application of Article 51. The
international community has expressed concern that Is-
rael will act proactively to thwart Iran’s nuclear program,
similar to its 1981 attack on Iraq’s nuclear facility and
reported attack on Syria’s nascent nuclear program.
The concern is justified, as Israeli decision makers have
consistently articulated that a nuclear Iran presents a
direct, existential threat to Israel’s security.
Herein lies the tension with respect to global secu-
rity: what is the limit of Iran’s right to join the international
nuclear club as compared to Israel’s right to engage in
proactive self-defense? The question is not merely aca-
demic nor ephemeral; President Ahmadinejad has di-
rectly threatened Israel, saying, “We ask the West to re-
move what they created 60 years ago and if they do not
listen to our recommendations, then the Palestinian na-
tion and other nations will eventually do this for them….
remove Israel before it is too late and save yourself from
the fury of regional nations.”
That threat potentially becomes “actionable” if Iran
were to develop the bomb. However, the threat is not
limited to Israel as fall-out of nuclear radiation directly
endangers other countries in the region including Leb-
anon, Egypt, Jordan and Syria. In addition, as Ahma-
dinejad has threatened nations that support Israel self-
defense questions are appropriate to ask in European
capitals, much less in Washington, DC, because Ameri-
can assets are vulnerable internationally.
Global security requires minimization of both pres-
ent threats and future dangers. Managing the former
demands international cooperation, commitment and
resources; addressing the latter requires a clarion call
to action with respect to an imminent threat. Although
different regions are burdened with varying degrees of
conflict and strife, the future, direct threat posed by an
additional nation developing nuclear capability, par-
ticularly when it has unequivocally articulated threats
against the nations of the world, directly calls into ques-
tion the essence of international order and law.
Iran has consistently issued threats against nation-
states that have not–directly or indirectly—articulated
aggression against that country. Although the Iranian
regime has been threatened with sanctions and possi-
ble military action, both are in response to Iran’s threats
and imminent nuclear capability. That is, the sanctions/
military action discussion has been a result of threats
articulated by Iran.
However, as these articulated threats have not de-
terred Iran from continuing to develop its nuclear pro-
gram, the fundamental question facing the international
community is whether and when concrete, proactive
measures will be implemented. That, after all, is the core
of global security and self-defense.
Amos Guiora is Professor of Law, SJ Quinney Col-
lege of Law, the University of Utah. Guiora teaches Inter-
national Law, Criminal Procedure, Global Perspectives
on Terrorism and a Global Justice seminar; his latest
book is “Freedom from Religion: Rights and National
Security” (Oxford University Press, 2009).
**
6XPPLW

 7YVTV[PUN7LHJLPU0YHX
I`:\WWVY[PUN[OL9\SLVM3H^
By James R. Holbrook, Professor, University of Utah S.J. Quinney College of Law
The World Justice Project has published a working
definition of the “rule of law” which includes four objec-
tives:
1. The government and its officials are account-
able under the law;
2. The laws are clear, publicized, stable and fair
and protect fundamental rights, including the security of
persons and property;
3. The process by which the laws are enacted, ad-
ministered and enforced is accessible, fair and efficient;
and
4. The laws are upheld, and access to justice is
provided, by competent, independent and ethical law
enforcement officials, attorneys or representatives and
judges who are of sufficient number, have adequate re-
sources and reflect the makeup of the communities they
serve.
From early 2009 through March 2010, the Univer-
sity of Utah’s S.J. Quinney College of Law (the “College
of Law”) promoted these rule-of-law objectives in Iraq
through the law school’s Global Justice Project: Iraq
(GJPI). The GJPI project received funding from the U.S.
Department of State to help build a more democratic and
stable Iraq by doing the following: offering advisory and
capacity-building assistance to the government of Iraq
in constitutional and legislative development; facilitating
the development of a national electoral framework; as-
sisting with anti-corruption reform and education; assist-
ing with the development of a comprehensive, intercon-
** nected legislative process system; supporting judicial
6XPPLW

independence; and reviewing and proposing revisions
to the Iraqi criminal procedure code.
The GJPI project fielded a team of legal experts in
Baghdad’s International Zone, backed by expert advi-
sors and student researchers located in the United
States and Europe. GJPI team members worked closely
with the U.S. Embassy Baghdad’s Office of Constitu-
tional and Legislative Affairs, its Anti-Corruption Coor-
dination Office and its Office of International Narcotics
and Law Enforcement to provide technical assistance
and advice to the Iraqi judiciary and the government of
Iraq and its law-making and anti-corruption institutions
in their efforts to promote and strengthen the rule of law.
The College of Law’s Dean Hiram Chodosh and
Professor Chibli Mallat, both of whom were intimately
involved with the project, worked with Iraqi officials and
the international community in Baghdad to provide ad-
vice about federalism focused especially on the structure
and composition of the Federation Council, a legislative
body not yet created, called for by Article 65 of the Iraqi
Constitution. Professor Haider Ala Hamoudi and Sara
Burhan Abdullah worked with the Constitutional Review
Committee of the Iraqi Council of Representatives to
assist the Committee’s thorough-going review of and
proposed revisions to the Iraqi Constitution. Jaye Sitton,
Sean Gralton and Jeff Fischer worked with Iraqi legisla-
tors and government officials on bolstering the electoral
legal framework of legislation and regulations. Muayyad
Al-Chalabi worked with representatives of all the Iraqi
law-making institutions to assess each institution’s in-
ternal legislative process system and to design the co-
ordinated management criteria for an interconnected
and interoperable system. Professor James Holbrook
worked with representatives from the Iraqi State Shura
Council on their efforts to make international commercial
arbitration more robust in Iraq. Vincent Battle and Navin
Beekary worked with experts from the U.S. Embassy
Baghdad and from the Iraqi Commission on Integrity,
the Iraqi Inspectors General, and the Iraqi Board of Su-
preme Audit to strengthen Iraq’s anti-corruption legisla-
tion. Barrister Andrew Allen worked with representatives
of the Iraqi Chief Justice to review and update the coun-
try’s criminal procedure code.
The GJPI project presented numerous workshops
for Iraqi government officials, legislators and judges, in-
cluding a workshop for Iraqi provincial authorities on the
legal basis for relations between the provinces and the
Iraqi federal government; workshops for the Presidency
Council on federalism and unimplemented articles in the
Iraqi Constitution of 2005; workshops for the Secretar-
ies General of the Iraqi law-making institutions on co-
ordinated legislative process systems; a workshop on
international commercial arbitration; an anti-corruption
workshop for members of the Iraqi judicial, executive
and legislative branches, the Iraqi anti-corruption insti-
tutions and the Iraqi media; and a workshop on legis-
lative drafting focused on existing anti-corruption and
related laws in Iraq.
The GJPI project employed Iraqi administrators, in-
terpreters, translators, retired judges and a law profes-
sor from Basra University to assist in implementing the
project’s activities in Iraq. Dozens of technical papers
and legal analyses were translated from English to Ara-
bic and disseminated to Iraqi judges and government
officials. Similarly, dozens of proposed Iraqi laws were
translated from Arabic to English and then analyzed by
project experts. Project experts are completing a book
series (in English and Arabic), including a guide to Iraqi
law and policy, Iraqi federalism, the Iraqi Constitution,
anti-corruption and the Iraqi criminal procedure code.
The GJPI project’s Web site, www.gjpi.org, is a pub-
licly available information repository about the Iraqi legal
framework. The project Web site includes laws in trans-
lation, analyses, news and information about legislation,
court cases, organizations involved in legal work in Iraq
and links to Iraqi and other sources of legislation. The
project also created a parallel Arabic language Web site.
All of this information is being transferred to a perma-
nent database maintained by the University of Utah to
preserve the material record of the project, to organize
and disseminate this information in a meaningful man-
ner and to provide useful reference resources to Iraqi
leaders, current and future researchers and to the global
public.
The College of Law’s GJPI project supported the
rule-of-law commitment of Iraq’s government and judi-
ciary and promoted peace in this post-conflict state by
helping Iraqis build a more democratic and stable coun-
try. By working closely with Iraqi leaders and judges, the
project also helped strengthen Iraq’s own rule-of-law
capacity-building efforts. The path forward for Iraq re-
mains challenging, and now Iraq controls this path.
James R. Holbrook is Clinical Professor of Law at
the University of Utah’s S.J. Quinney College of Law in
Salt Lake City, Utah, where he teaches negotiation, me-
diation and arbitration. In 2009-2010, Professor Hol-
brook served as the Chief of Party in Baghdad and then
as the Principal Investigator in Salt Lake City on the Col-
lege of Law’s Global Justice Project: Iraq.
**
6XPPLW

 3LNHS0ZZ\LZPU[OL*VU[YVS
VM.LVSVNPJHS*HYIVU:LX\LZ[YH[PVU
By Arnold W. Reitze, Jr., Professor, University of Utah S.J. Quinney College of Law
and member of the University of Utah’s Institute for Clean and Secure Energy
Carbon capture and storage (CCS) in geological for-
mations is a way to reduce emissions of carbon diox-
ide (“CO2“). CCS begins by separating CO2 from other
gases, which may be done before or after fuel is com-
busted. Post-combustion capture is the more important
technology because it can be used to capture CO2 from
existing fossil-fueled facilities. After the CO2 is removed
from the exhaust gas stream it must be converted from
a gas to a supercritical fluid before it is transported to
the injection site by pipeline. This reduces the efficiency
of the electric generation process because of the energy
required to liquefy CO2. CCS is projected to increase
the cost of producing electricity by about 30 percent to
60 percent.
A modern power plant utilizing CCS will need to
transport more than 1.85 million cubic feet each day
of liquid CO2 to an underground injection site, which is
equivalent to the volume of a football field that is more
than 32 feet deep. Many federal agencies have some
responsibility for pipeline regulation, but new legislation
is needed because it is not clear which agency has ju-
risdiction over CO2 transport. Pipeline construction can
be expected to face “not in my backyard” (NIMBY) op-
position. This issue was addressed in Montana, which
grants owners of pipelines transporting carbon dioxide
to use eminent domain to acquire private property.
CO2 under high pressure is injected into under-
ground geological formations at a depth of about 800
meters (2,625 feet). The Energy Independence Act and
Security Act of 2007 requires the U.S. Geological Survey
to determine the capacity for CO2 sequestration. Issues
of concern to the Geological Survey include the effect of
sequestration on mineral extraction and on surface ac-
tivities as well as a site’s potential for injection-induced
earthquakes. Sequestration will require dealing with
the properties of supercritical CO2 including its relative
buoyancy, its mobility within subsurface formations, the
corrosive properties of the gases in water, the effect of
the impurities in the flue gas and the large volume of ma-
terial that will need to be injected. To have viable carbon
storage will require many technical problems to be over-
come, but it also will require implementation of a cost-
effective environmental protection program; ownership
issues concerning carbon storage must be settled, and
the issue of long-term liability needs to be resolved.
While large-scale CCS has not yet occurred, the body
of law concerning enhanced oil recovery (EOR) and the
use of geological storage for natural gas can be used to
help shape an appropriate legal regimen for CCS.
**
6XPPLW

Carbon sequestration in underground reservoirs re-
quires a permit issued under the Safe Drinking Water
Act (SDWA) that is administered by the Environmental
Protection Agency (“EPA”) and by states that have been
delegated enforcement authority. The Energy Indepen-
dence and Security Act of 2007 gave EPA explicit au-
thority under the SDWA to regulate injection and geo-
logic sequestration of carbon dioxide. EPA’s proposed
rule governing underground injection of carbon dioxide
under the SDWA was promulgated July 25, 2008. The
proposed rule creates a new category for wells used for
CCS in addition to the five classes of wells that already
require permits.
Proposed Class VI regulations include requirements
to ensure wells are appropriately sited and are con-
structed to prevent fluid movement. The confining zone
for the injected CO2 must be free of faults or fractures,
and the injection may not be above the lowest formation
containing a source of drinking water. There are moni-
toring and reporting requirements including periodic re-
evaluation to verify the material injected is moving as
predicted. The rule also includes financial responsibility
requirements to assure the resources are available for
well plugging, site care, closure, and emergency reme-
dial response. Under the proposed rule, well operators
remain responsible for post-injection site care many
years following the cessation of injections. Migration that
endangers underground sources of drinking water is
subject to indefinite liability. EPA’s proposed rule affects
state regulation, but states cannot easily be preempted
because legal issues concerning sequestration involve
property, tort, and contract law controlled by state law.
U.S. Clean Air Act (‘CAA”) requirements increase the
cost and the time required for permitting coal-fired elec-
tric power plants, which reduces the cost advantage of
coal-fired electric generation and CCS will add to these
costs. Separating CO2 from the gas stream could result
in new or additional air pollution, which could trigger ad-
ditional pollution control requirements. Because of the
energy requirements for compressing CO2, a power
plant will have to burn more fuel to achieve the same
net generating capacity. This could increase emissions
and potentially trigger construction permit requirements.
CCS may be ruled to be the best available control tech-
nology (“BACT”) and therefore be mandated for new or
modified electric power facilities. Alternatively, integrated
gasification combined cycle (“IGCC”) technology, which
makes it easier to sequester carbon, but is more costly,
may be considered to be BACT.
 The U.S. Resource Conservation and Recovery Act
(RCRA) has stringent requirements for hazardous waste
disposal. It is unlikely CCS would be considered haz-
ardous waste disposal, but such a development can-
not be ruled out. The Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA,
a.k.a. Superfund) provides for the clean up of contami-
nation by hazardous substances, which potentially could
include sequestered electric power waste streams.
CERCLA allows the federal government, state and local
governments and private parties to recover the costs
associated with a clean-up operation. Substances that
are hazardous under the major environmental statutes
are considered hazardous under CERCLA. EPA’s CAA
endangerment finding for CO2 could potentially trigger
CERCLA liability. Alternatively, hazardous contaminants
in the CO2 waste stream could trigger CERCLA liability.
For the foreseeable future costs will be the primary
barriers to implementing CCS. But if sequestration is to
become a viable method of dealing with the need to
reduce carbon emissions many legal issues will need to
be addressed.
Arnold Reitze is a Professor of Law at the S.J. Quin-
ney College of Law at the University of Utah and a mem-
ber of the University of Utah’s Institute for Clean and
Secure Energy. He is the J.B. and Maurice C. Shapiro
Professor Emeritus of Environmental Law at the George
Washington University Law School. He has taught en-
vironmental and natural resource subjects for 42 years
with an emphasis on air pollution and climate change.
He has authored seven environmental law books includ-
ing major treatises in the air pollution field and has au-
thored or coauthored more than 50 law review articles,
as well as numerous research studies for industry and
government.
**
6XPPLW

**
6XPPLW


 7YVZLJ\[PUN;LYYVYPZT>P[OV\[[OL3HUN\HNLVM>HY
By Wayne McCormack, Professor, University of Utah S.J. Quinney College of Law
Extremist rhetoric in the U.S. continues to beat the
drums of a “war on terrorism.” This rhetoric makes west-
ern society more vulnerable to violent attack by fanning
the flames of fundamentalism, and it comes at the cost
of established norms and professional processes of the
civilian justice system. Unfortunately, the only other op-
tion promoted in the popular debates has been that of
domestic criminal law enforcement. It is probably true
that the phenomenon of modern international terrorism
is a bit much for the domestic criminal justice system
to handle alone. Expecting FBI agents to track down
criminals in the wilds of Tora Bora and bring them back
to the U.S. for trial without military assistance might be
stretching matters a bit.
For some reason, the most obvious model, that of
criminal sanctions under the law of nations combined
with military operations other than war (MOOTW), has
not received much attention despite its long-standing
utility with regard to piracy and slavery. In the search for
a model in which to place responses to terrorism, it is
not necessary to handicap ourselves either by insisting
** on a single construct or by limiting our options to the
6XPPLW

two of war and crime. The categories of war and crime
are merely bookends enclosing a middle—MOOTW and
the law of nations.
Some observers contend that it is not important
whether we refer to terrorism as war or crime, but I dis-
agree. In recent history, the U.S. has had the Cold War,
the War on Crime, the War on Drugs, the War on Pov-
erty, and then the Global War on Terrorism. Nobody took
seriously the message to shoot a pharmacist or a home-
less person. The war metaphors in those instances were
seen for what they were—metaphorical embellishments.
But in the case of GWOT, people took it so seriously that
we have had Guantanamo, torture, warrantless wiretaps
and probably as-yet-unknown abuses.
Terrorism (deliberate targeting of civilian populations)
has been with us for at least 3,500 years, and indeed the
laws of war were designed precisely to deal with some
elements of it. Piracy and slavery were both recognized
in the 18th Century as crimes that could be punished by
any nation because they were against the norms of the
international community. Indeed, guerilla warfare was
seen in similar terms. Although the law of armed conflict
(LOAC) had been developing for about 2,500 years, it
was not codified until the Lieber Code of 1863. Lieber
himself, along with other progenitors of LOAC such as
Colonel Winthrop, railed against the propensities of gue-
rilla fighters to turn into roving bands of criminals. In the
post-colonial independence movement of the late 20th
Century, it became quite common to speak of “asym-
metric warfare” rather than “terrorism” and use the cus-
tomary law of war to address asymmetric guerilla fight-
ers. Both of these lines of analysis, asymmetric warfare
and crimes erga omnes, are available as sources of law
for dealing with the phenomenon of transnational politi-
cal violence by non-state actors.
In traditional law of armed conflict, war is a condition
that exists between nation-states, not with individuals or
even groups of individuals.
The lowest level of warfare or armed conflict to
which certain laws of war apply is an insurgency. For an
insurgency to occur, the insurgent group would have to
have the semblance of a government, an organized mili-
tary force, control of significant portions of territory as its
own and its own relatively stable population or base of
support within a broader population.
In the absence of these factors, a group engaged in
unjustified violence is a criminal organization, not a bel-
ligerent with recognized status in international law.
A valuable corollary can be found in the U.S. experi-
ence with racial terrorism and the so-called KKK stat-
utes. The reason for supra-state intervention by interna-
tional organizations into the affairs of a nation-state is the
same as the reason for supra-state intervention by the
U.S. federal government into the affairs of a U.S. state. It
is the presence of an organization (whether recognized
as the state or not) with sufficient resources to carry out
violent actions against a civilian population without the
state being willing or able to control it. That ability affects
the legitimacy of government and thus threatens the se-
curity of every state.
The impacts, both physical and psychological, of
organized violence may be even greater today than
they were 150 years ago. Countering this realization, we
must be aware that legal principles of the international
community are rooted in a respect for the individual sov-
ereignty of nations. Given that respect, international law
does not need to intrude into the internal affairs of a
nation to deal with ordinary street criminals. It is when
a large, organized and well-funded group appears on
the scene with the means to wreak widespread psy-
chological and physical harm that the international inter-
est is triggered. This leads to the international corollary
of federally-defined offenses: either when the actor is
clothed with some semblance of “state authority” or the
conspiracy is sufficiently large to be a concern of the
international community.
Meanwhile, the Rome Statute of the International
Criminal Court has embraced the emerging definitions
of crimes against humanity that derived from LOAC. It
is now recognized as a matter of international law that
one commits a crime when engaging in “widespread
and systematic” violence against civilians. Little more
is needed to now recognize an international crime that
permits the use of military force in just the fashion that
piracy and slavery did before.
It’s not war. It’s not ordinary crime. It is jus gentium,
a crime erga omnes, a violation of the “law of nations.”
The paradigm of international criminality means that jus
gentium, the “law of nations” should embrace terrorism
along with piracy, slavery, genocide and torture as of-
fenses erga omnes.
Wayne McCormack is the E.Wayne Thode Profes-
sor of Law at the University of Utah. His long experience
in constitutional law combined with coordinating the
University’s involvement with the 2002 Olympics pro-
duced a new career in security planning and counterter-
rorism analysis. He has published widely in that field in
the last several years.
**
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,JVUVTPJ*OHUNLZPU:V\[OLHZ[(ZPH
By Jonathan A. Muir and Ralph B. Brown, Department of Sociology, Brigham Young University
Sometimes even the simplest technological shifts
can become the “engines” of great social and economic
change.
Beginning in the mid 1990s, many Southeast Asian
countries experienced dramatic increases in the num-
ber and availability of inexpensive motorcycles, in effect,
moving their respective populations from pedestrian
economies to ones balanced on two motorized wheels.
For example, in Indonesia, between 1987 and 2005, the
number of motorcycles in the country increased from
5.5 million to approximately 29 million, with the most
dramatic period of growth occurring from 1990 to 2005
at which time the number of documented motorcycles
nearly tripled, representing a 370 percent increase
(Badan Pusat Statistik—Office of Statistics, Indonesia).
During approximately this same time period, the Indone-
sian population increased only 15 percent.
Similar trends took place in Thailand and Vietnam.
** In Thailand, from 1999 to 2003 the total number of reg-
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istered motorcycles increased from 13 million to 18 mil-
lion and the motorcycle to car ratio increased from four
motorcycles for every one car to five motorcycles for ev-
ery one car (Thailand Ministry of Transport). And, in Viet-
nam, since 1990, motorcycles have increased by 1,000
percent while population has increased by 24 percent.
Thus, in 2003, 95 percent of all registered vehicles in
Vietnam were motorcycles (Hsu et al 203). Today, with
few exceptions (Malaysia, Brunei, Singapore), motorcy-
cles represent the primary means of personal transpor-
tation for both rural and urban populations throughout
Southeast Asia.
Much of this dramatic growth, especially over the
past 10 to 15 years, can be attributed to the increased
availability of less expensive Chinese models, gener-
ally costing less than half the price of more established
Japanese brands. Access to one or more motorcycles
enables all members of a household to have greater
geographic mobility—giving them easier access to jobs,
and consumption, and recreational and educational op-
portunities. And, most importantly, but far less obvious,
the increased geographic mobility has created dramatic
shifts in social mobility, especially for young women—a
demographic group that research consistently shows,
is the most important barometer of economic develop-
ment as measured by increased Gross Domestic Prod-
uct (GDP).
Transitioning to a motorcycle economy has socially
empowered Southeast Asia’s lowest social classes, es-
pecially young rural women, by shifting their economic
status. Traditionally, young women, particularly in rural
economies, are generally engaged in “secondary” eco-
nomic activities—those activities like planting and caring
for a garden, watching livestock and so forth, that save
the household money versus making money. Given the
opportunity, rural households will almost always opt to
make money (“primary” economic activities) versus sav-
ing as an economic strategy if the opportunity costs are
in their favor.
But transportation costs for rural households have
been a prohibiting factor. Consequently, young women
have tended to stay at home while their male siblings
left to make money. In such circumstances, pregnan-
cies early in a young girl’s life have little effect on the
economics of the rural household. Yet, one of the most
important indicators of economic progress at the coun-
try level (versus the individual household) is to increase
the average age of first pregnancy in girls. Research
further demonstrates that the strongest instrument for
postponing female pregnancy is education followed by
the opportunity to earn an income. Our research dem-
onstrates that through motorcycles, young rural women
can now access schools and jobs that once eluded
them due to high transportation costs. For example,
after controlling factors such as social economic status
and location, our research shows motorcycle access is
associated with a 555 percent increase in the odds of
an Indonesian woman completing a college education.
In this context, our research shows that rural women
might indeed be postponing their first pregnancy un-
til later in life versus in their early teens. When young
women are actively engaged in earning money or pre-
paring to earn money, their likelihood of getting preg-
nant early in life declines because having a child would
greatly curtail their earning potential.
Motorcycles now give rural Southeast Asian women
access to educational opportunities and job markets
that 20 years ago were too far away to make accessing
them economically feasible. Our research further shows
that in Cambodia, Thailand and Vietnam, 76 percent of
women in the households interviewed depend on mo-
torcycles to get to and from work. The average distance
traveled to work by these women was approximately
5 kilometers, with the maximum distance traveled be-
ing 200 kilometers. Furthermore, statistical analysis on
demographic data from the Demographic and Health
Surveys for Indonesia show a strong positive associ-
ate between motorcycle ownership and increased edu-
cational attainment. More importantly, there is also a
strong positive association between motorcycle owner-
ship and an increase in age of first pregnancy. These
data show that the average age at first birth for women
in Indonesia increased from 20.4 to 22.5 when com-
paring age at first birth averages for women currently
in their twenties with women currently in their forties.
Clearly other factors must be considered as well, but
our research shows that geographic mobility has an ef-
fect on opportunity costs associated with young women Ralph B. Brown is a Professor of Sociology and
leaving the home to get more education and/or earn Director of the International Development Minor at
money. This in turn appears to have an effect on young Brigham Young University. He is also the Executive Di-
women postponing their first pregnancies in an effort to rector and Treasurer of the Rural Sociological Society.
keep their opportunity costs low. Thus, contrary to the His Ph.D. (1992) is in Rural Sociology from The Univer-
assumption that greater mobility of young women would sity of Missouri-Columbia. His research has centered on
create a raise in their promiscuity, the economic advan- community satisfaction and attachment in rural commu-
tages to geographic mobility seem to eclipse this, if the nities and on social change and rural development both
assumption has any merit at all. in the United States and Southeast Asia. Current re-
Sometimes the simplest technologies become the search foci include the social and economic impacts of
“engines” of great social and economic change. The ad- the emerging motorcycle-economies of Southeast Asia,
vent of inexpensive Chinese motorcycles in Southeast and declines in community and friendship attachments
Asia appears to be such a case. These motorcycles are in “liquid modernity.”
literal “engines of change.” The question now, given the
Southeast Asian experience, is will a similar strategy—
adopting inexpensive motorcycles to reduce opportu-
nity costs for young rural women to seek employment—
might have a similar effect in other developing regions of
the world like Sub-Saharan Africa? **
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 <UIV\UKLK5H[\YL!4HRPUN9VHKLK3HUKZJHWLZ
4VYL7LYTLHISLMVY>PSKSPML
By Amy J. Wildermuth, Professor, University of Utah S.J. Quinney College of Law

Americans have an affinity for boundaries. We re- Efforts to modify human behavior typically involve
peat Robert Frost’s misunderstood line “good fences either (1) the employment of warning signs or (2) the
make good neighbors” so often that it has become part distribution of information in public awareness cam-
of American cultural lore. Our belief in one’s right to ex- paigns geared toward reducing wildlife collisions. Both
clude others from our land is so important that we have of these techniques have fairly low effectiveness rates.
awarded punitive damages even though no actual harm At best, they are 20 percent effective based on stud-
was done by a trespass. This affection for boundar- ies of deer-vehicle collisions. Warning whistles (usually
ies, however, runs counter to nature’s unboundedness. ultrasonic), highway lighting and lower speed limits are
Many wildlife species need room to roam. They cannot also employed in some areas but the effectiveness of
exist in fragmented landscapes, and the ecosystems these measures at preventing deer-vehicle collisions in
that they are a part of suffer as the landscape becomes studies is near 0 percent.
less and less permeable. Based on these research, ecologists have conclud-
To improve biodiversity, we must begin to examine ed that drivers pay little attention to warnings, whether
these boundaries, and to consider how to make the posted along roads or distributed in other ways. More-
landscape more permeable for wild species. Although over, the more signs that are posted, the more familiar
we could not—and should not—wipe clean the entire and invisible they become. In sum, attempts to modify
set of boundaries that we have created, we must never- human behavior are largely ineffective in reducing wildlife
theless begin to discuss our connections to bigger land- collisions.
scapes, and to imagine different visions of landscapes Attempts to modify animal behavior, however, are
and ways of living on and in them. As we begin this much more effective. There is, however, one exception
project, it is clear that there are boundaries created by in this group. The outlier—the wildlife behavior tool that
something we often do not think of as barriers but that
are critical to the problem: the roads that dissect our
landscape.
In the United States alone, there are more than 4
million miles of highways. This network of roads, as
the leading text on road ecology has noted, “provides
unprecedented human mobility, greatly facilitates the
movement of goods and stretches the boundary of
social interaction.” It also, however, “slices nature to
pieces . . . degrad[ing] and disrupt[ing] natural patterns
and processes.”
Interest in the impact of roads on the environment,
and wildlife in particular, has been steadily increasing
over the past few years. The new discipline of road
ecology has brought an increased understanding of the
devastating effects of roads on wildlife of all shapes and
sizes, as well as people. The experts in this field have
proposed and tested a wide variety of mitigation mea-
sures and have shown that many—although not all—of
the ill effects of roads can be reduced through smart
design at costs that are not, on balance, prohibitive.
Not all mitigation measures, however, are alike. In
fact, the most commonly used mitigation measures are
often the least effective at reducing collisions, and they accomplishes the least—involves the use of large num-
might even make conditions worse for wildlife and driv- bers of mirrors and reflectors posted along roadways.
ers alike. Ironically, these are one of the most frequently-used
Mitigation measures fall into two categories: those techniques in the United States. Although drivers often
that attempt to modify human behavior so more driv- notice them, they are intended to draw animals’ atten-
ers avoid collision with wildlife on roads, and those that tion and to keep them off the road. The most popular is
** attempt instead to modify animal behavior, largely by the “Swareflex” reflector system, in which red reflectors
6XPPLW keeping the animals off the road. are mounted at equal intervals along a road at headlight

height. Headlight beams that hit them are reflected to
create the illusion of a moving lighted fence.
The logic of this technique has been frequently ques-
tioned, often because it is not clear whether deer can
see red. No matter what the reason for failure, studies
have shown that mirror and reflector techniques reduce
accident rates by about 10 percent. This puts these
techniques on par with measures to modify human be-
havior. And just like attempts to modify driver behavior,
although mirrors and reflectors have been used often,
they are not particularly ineffective.
Far more effective in reducing accidents are fenc-
es that physically keep wildlife off of roads, particularly
when combined with one-way ramps or gates that pro-
vide exits for wildlife that do end up on the road. Mea-
sures to design and construct overpasses and under-
passes are also more effective, allowing wildlife to move
from one road side to another without crossing the road
at grade level. Less effective but nonetheless workable
are strategies that use highway personnel to harass ani-
mals in order to keep them away from the roads, as well
as strategies that require vegetation around roads to be
modified either by planting species that are unpalatable
to local wildlife or by removing vegetation altogether.
The removal of palatable vegetation reduces the appeal
of roadsides and certain species are reluctant to move
into wide open spaces.
Underpasses and overpasses, when properly de-
signed in terms of adequate space and sight lines for
wandering animals, offer an additional benefit beyond
safe passage: They can mitigate habitat loss and habi-
tat quality concerns when vegetated with native plants.
Well-designed and planted travel corridors can them-
selves serve as useful habitats and reduce fragmenta-
tion. Moreover, like other well-designed wildlife habitats,
these corridors sometimes supply further ecological
benefits. Corridors that include reconstructed wet-
lands, for instance, can help manage stormwater flows,
control siltation and otherwise help reduce pollution.
Given the clear effectiveness of certain mitigation
strategies, one wonders why these strategies have
been implemented in only a handful of locations. But
boundaries exist in our minds as well as on the land.
Before we can redesign our landscapes, we need to un-
derstand and embrace biodiversity needs. We can then
begin to imagine how the landscape might be reshaped
to fit those needs. Effective wildlife mitigation measures
for roads offer us a place to start.
Amy J. Wildermuth is a Professor of Law in the
Wallace Stegner Center for Land, Resources and the
Environment at the University of Utah S.J. Quinney Col-
lege of Law. She teaches and writes on civil procedure,
administrative law, property and environmental law. Be-
fore joining the faculty at Utah, Professor Wildermuth
clerked for Justice John Paul Stevens of the Supreme
Court of the United States.
**
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 3P]PUN9LZWVUZPIPSP[`
By Rainer Wend
What do customers expect from their service pro-
vider in the next 10 or 20 years? What are their needs
and expectations? Customer behavior changes con-
stantly and this trend will increase in the years to come
with climate change, the Internet and ongoing globaliza-
tion as key drivers. In addition, not just customers, but
employees and investors as well will focus even more
on the social behavior of major companies that do busi-
ness around the world, impacting the environment and
societies in which they operate. Corporate responsibil-
ity means combining business success with social and
environmental responsibility.
Deutsche Post DHL is the world’s leading mail
and logistics company with some 500,000 employees
around the world. For our Group, market leadership
brings with it a special responsibility to use our core
expertise in logistics and our worldwide presence to
benefit society and to continuously minimize the com-
pany’s impact on the environment. For Deutsche Post
DHL, corporate responsibility means living responsibility
and the global player can rely on its employees and their
know-how, talents and passion to do just that. “Living
Responsibility” is therefore the motto for our corporate
responsibility strategy.
Our corporate responsibility (CR) approach is an
integral component of our long-term business strategy
because we believe that business success and corpo-
rate responsibility go hand-in-hand. As a global service
provider and one of the biggest employers in the world,
it is very important to know what the expectations of
customers and employees are. This is why Deutsche
Post DHL asked customers, experts and scientists last
year about the major issues of the years to come. The
results were published in the 2009 Delphi Study “Deliv-
**
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ering tomorrow—customer needs in 2020 and beyond”
and show that climate change will be the key driver for
a revolution in new products and services. Eco-friend-
liness and conscientious consumption will increasingly
determine purchasing behavior. The study also shows
that the logistics industry is likely to set trends and es-
tablish new standards for cooperative efforts and envi-
ronmentally friendlier business. The results are already
part of Deutsche Post DHL’s long-term business strat-
egy and CR strategy. We want to take a leading role in
green activities, in humanitarian actions, as well as in
education, taking advantage of our expertise and our
worldwide presence. The Group’s commitment is there-
fore focused on environmental protection, disaster man-
agement and education in the form of three programs
called: GoGreen, GoHelp and GoTeach.
Disaster Management with GoHelp
Deutsche Post DHL is present almost everywhere in
the world. With GoHelp the Group uses its global pres-
ence and its expertise in logistics. The program focuses
on disaster management and entails a two-fold ap-
proach: disaster response and disaster preparedness.
In cooperation with the United Nations, two programs
provide support to countries in need free of charge.
When a natural disaster hits our DHL Disaster Re-
sponse Teams (DRTs) are mobilized. Initiated in 2005,
the disaster response program has proven to be an im-
portant support in tackling logistical problems that arise
at the airports closest to disaster zones. When earth-
quakes, cyclones or flooding have devastated a region,
help usually comes from the international community
with international aid workers and relief goods flying into
regional airports. The regional airports are quickly con-
gested by the food, medical supplies and tents arriving
from all over the world—all of which are urgently needed
in the field. Very often there is no set disaster plan on
how to manage such situations. This is where the DHL
Disaster Response Teams come in to solve the bottle-
neck, cooperating closely with the UN Office for the Co-
ordination of Humanitarian Affairs (OCHA).
The DRTs consist of approximately 200 employee
volunteers worldwide who are specially trained to handle
the challenges on the ground. The DRT members use
their extensive logistics expertise to help manage the
logistics of disaster relief goods arriving at the airports.
Together with local authorities and airport staff, they take
care of incoming relief goods, set up and manage pro-
fessional warehousing, including the sorting and inven-
torying of goods. We have three DRTs in place, covering
the world’s regions most vulnerable to natural disasters:
DRT Americas in Panama, DRT Middle East/Africa in
Dubai and DRT Asia Pacific in Singapore. The teams
are ready for deployment within 72 hours after being
called by OCHA. Each deployment involves about 15-
20 volunteers.
The most recent DRT deployments were in the wake
of the earthquake in Chile and only shortly before that in
Haiti. A total number of 37 DHL volunteers went to Haiti
only a few days after the earthquake hit the island. The
teams helped handle over 2,000 tons of international
relief aid from over 60 aircrafts in a period of 25 days,
and ran an inter-agency warehouse, allowing more than
25 different aid organizations to benefit from our logis-
tics expertise.
The second GoHelp pillar of Deutsche Post DHL is
called GARD (Get Airports Ready for Disaster). GARD
focuses on disaster preparedness. It was launched to-
gether with the United Nations Development Programme
(UNDP). Piloted in 2009, the program was built around
the need to prepare governments, people and airports
before a disaster strikes. GARD is a supportive initia-
tive in making worldwide relief efforts more effective.
While the DRTs use the company’s expertise in logistics,
GARD is a training program for local airports in potential
disaster areas designed to enable local authorities and
airport staff to better cope with such situations. DHL
trainers work with airport personnel on reviewing airport
capabilities and capacities, understanding coordination
requirements, and helping formulate contingency plans
and coordination structures. Deutsche Post DHL has al-
ready successfully piloted the program at the Makassar
and Palu airports in Indonesia.
Environmental Protection with GoGreen
GoHelp is just one pillar of our “Living Responsibility”
approach. The GoGreen environmental protection pro-
gram is a lighthouse example in the logistics industry.
It was founded to minimize the environmental impact
of the Group’s core business of logistics services and
transportation (particularly road and air transport). With
GoGreen Deutsche Post DHL has set itself ambitious
targets with a focus on CO2 emissions as an important
environmental factor in the logistics and transportation
industry. By 2020 the Group aims to improve the car-
bon efficiency of its own business activities and those
of its subcontractors by 30 percent. In other words, the
carbon footprint per item shipped, ton kilometer trans-
ported or square meter of space used is to be cut by 30
percent compared to 2007 levels.
Measures were developed to minimize these impacts.
The approach includes optimizing the air and vehicle
fleet, raising energy efficiency in buildings, implementing
innovative technologies, developing green products and
efficient solutions, encouraging the employees to reduce
resource usage and CO2 emissions, and getting cus-
tomers and subcontractors on board. Our employees
play a crucial role in all our attempts to make our busi-
ness as green as possible. Encouraging our 500,000
employees worldwide to join the effort by adopting cli-
mate-friendly practices is just as important as driving
innovations and using alternative energy sources. An
example shows the high commitment of our employees:
With the “save fuel” initiative around 50,000 staff of the
MAIL division have already helped save over 3.5 million
liters of diesel and 3.7 million euros, as well as reducing
CO2 emissions by 11,000 tons. They will save a further
2.9 million liters through net-optimization.
Support Education with GoTeach
The third program, GoTeach was established to re-
inforce the global engagement in the area of education.
Education is a high-value asset and key to children’s
futures. And it is key to the future of the company as
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 the interests of its employees, customers and investors
in benefitting the environment and society. The Group
has developed a strategy that meets the balance be-
tween economic, environmental and social interests.
The Group-wide programs are constantly communicat-
ed, transparently implemented and continuously evalu-
ated. All this would be in vain however, without our em-
ployees and customers and without partnerships with
non-profit organizations whose core competencies are
to tackle the ecological and social challenges the world
faces today.

well. As one of the world’s biggest employers Deutsche CR approach at a Glance

Post DHL is always looking for well-trained, capable
staff with different levels of qualifications. With our
GoTeach program, we encourage and develop initia-
tives that support education and help young individuals
expand their personal development and skills. GoTeach
also offers employees the opportunity to volunteer in
educational projects.
Long-term Commitment
For Deutsche Post DHL, corporate responsibility
means handling assets entrusted to the company in a
respectful and sustainable manner as well as upholding
GoGreen – Minimizing the impact of the Group’s
activities on the environment with the target to im-
prove CO2 efficiency by 30 percent by 2020.
GoHelp – Using core logistics expertise to pro-
vide effective emergency aid in areas affected by
natural disasters in cooperation with the United Na-
tions.
GoTeach – Encouraging and developing initia-
tives that support people’s education and help ex-
pand their personal development and skills.

**
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 6PS,ULYN`/PUKZPNO[HUK-VYLZPNO[
By Lincoln L. Davies, Professor, S.J. Quinney College of Law, University of Utah

circumscribed nature, however, remains an open target

for reform.
A fundamental cause for environmental law’s lim-
ited scope is its disconnect with the field of energy law.
From a commonsense perspective, one would think
that these two areas of the law would be intertwined.
In the real world, energy use and environmental effects
are merely two sides of the same coin. Rationally, one
would assume they would be in the law as well. But
they are not.
It is a deep paradox of the modern regulatory
state, but energy law and environmental law serve cross
purposes. They come from different histories. They em-
ploy different tools. As a result, they operate in separate
spheres. Environmental law attempts to mitigate pollu-
The recent disaster in the Gulf of Mexico will de-
mand attention for years to come. As of May 2010, the
oil leak caused by the Deepwater Horizon oil rig contin-
ues unabated, its effects already appear daunting and
its ultimate aftermath is almost certain to be worse.
There is precedent for how U.S. regulators are
likely to deal with an incident of this magnitude. Ameri-
can environmental law has a long tradition of responding
to—and being spurred on by—human-induced calami-
ties. Early environmental regulation was a reaction to
visible harm: factory smoke in nineteenth century Chi-
cago, for instance. The “environmental moment” of the
1960s and 70s, when Congress passed the arsenal of
modern environmental statutes now on the books, in-
cluding Superfund, the Clean Water Act and the Endan-
gered Species Act, also was a clear response to crises
of the time: Love Canal, DDT the Cuyahoga River on
fire. As a society, the United States tends to be reactive,
not proactive, in how it copes with human effects on the
environment. American laws reflect that.
Oil is no exception. The law that will play a chief
role in the Deepwater Horizon disaster, the Oil Pollution
Act of 1990, was itself a direct reply to an environmental
catastrophe: the Exxon Valdez tanker spill in Prince Wil-
liam Sound.
There is a lesson in this. The Oil Pollution Act, like its
predecessor laws, is inherently shortsighted. As a retort
to a contemporary crisis, it does little to contemplate
the technology of the future. As a reaction to a disaster,
it is concerned more with immediate effects than root
causes. As an answer to a specific problem, it zeroes
in on the task at hand rather than contemplating the
broader picture. tion and protect human health. Energy law, in contrast,
The Oil Pollution Act, however, does not stand promotes the very activities that induce pollution in the
alone. The critiques applicable to it transfer to envi- first place. The field’s core aim is an unrelenting pursuit
ronmental law as a whole. Reasons for environmental of ample energy supplies at low prices, generally from
law’s reactionary trajectory are multitudinous; many are archetype—fossil and nuclear—fuels.
moored in an intractable political calculus of the here This disconnect between energy and environ-
** and now. One driving force behind environmental law’s mental law explains the Deepwater Horizon disaster on
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another level. It is the lesson of the spill that no one
talks about. The ultimate cause of the catastrophe was
not the explosion that led to it. It was not a regulatory
failure in the oversight of offshore drilling. It was not that
liability limits in the Oil Pollution Act are too low. It is that
our thirst for fuel is insatiable, and that we will go to vir-
tually any length to quench that thirst. Our laws largely
reinforce the pursuit.
Changing that pursuit is not a simple task.
Bringing energy law and environmental law closer to-
gether will not be easy. Nor will it solve all our problems.
The difficulty of the cause, however, is no excuse for a
lack of trying. For a failure to merge energy and envi-
ronmental law is merely a recipe for repeating the past.
We must, then, at least try.
Merging energy and environmental law will
push regulation in directions it previously has not gone.
A field of law that combines the aims, tools and mecha-
nisms of both energy law and environmental law will be
far more forward-thinking than either field is today. Most
fundamentally, it will rely on foresight rather than hind-
sight; it will plan rather than react.
Doing so will be an uphill battle. Planning our fu- Lincoln Davies is Associate Professor of Law at the
ture energy policy cuts against the grain of the Ameri- University of Utah’s S.J. Quinney College of Law, where
can ethos that markets rule, that picking winners and he teaches and writes on energy law and policy, envi-
losers violates our competitive spirit. Of course, if we ronmental law, water law, administrative law and proce-
recognize our current energy policy for what it is, the dure. His most recent scholarly article, Power Forward:
admission that we already choose technological victors The Argument for a National RPS, will appear this sum-
becomes obvious. We encourage nuclear power plant mer in the University of Connecticut Law Review.
construction without first deciding how to deal with the
waste; we turn over vast tracts of federal land to oil and
gas extraction; we subsidize fossil fuel markets with
military force.
A merged version of energy-environmental law
makes this admission and then tweaks, shifts and trans-
forms the result. It accepts the premise that we should
protect the public, but it tries to do that with inputs as
well as outputs. It still looks hard at cost, but it consid-
ers the principle in the long-term as well as the short. It
still ties energy to our national prosperity, but it sees that
prosperity in a more balanced, equitable way.
In a world where energy and environmental law are
joined rather than disjointed, the Deepwater Horizon oil
disaster is not an impossibility. We cannot revolution-
ize our energy world—or its governance system—over-
night. Fossil fuels, including oil, will play an important
role in our energy future no matter what shape it takes.
But in a changed social and legal mindset where limited
resources with immense potential environmental conse-
quences are recognized more as crutch than as a vehi-
cle, our reliance on these fuels will increasingly diminish
in favor of a more sustainable energy course.
In turn, the chance of another Exxon Valdez or
Deepwater Horizon should appear more as a receding
image in our rearview mirror than as an inevitable road-
block in our path.
**
6XPPLW


 (YNLU[PUH
Argentina’s Cristina Stock of quasi money: $45.92 billion (31 Dec. 2007)
Fernández de Kirchner Stock of domestic credit: $72.55 billion (31 Dec. 2007)
Household income or consumption by % share:
became president of
1.0%-lowest 10%; 35.0%-highest 10% (Jan.-Mar. 2007)
Argentina on Decem-
Inflation rate
ber 10, 2007, after (consumer prices): 22.0% (2008 est.) [based on non-
winning the general official estimates]
election in October. Investment (gross fixed): 23.2% of GDP (2008 est.)
She replaced herhus- Current account balance: $7.6 billion (latest year, Q4
2008)
band, Nestor Kirchner,
Budget: $86.65 billion-revenues; $82.85 billion-expendi-
who was president
tures (2008 est.)
from May 2003 to December 2007. She is Argentina’s Budget balance: -0.8% of GDP (2009 forecast)
second female president, but the first to be elected. Public debt: 48.5% of GDP (Q4 2008) [cumulative debt of
Prior to her current position, she was a senator for all government borrowing]
Beunos Aires province and Santa Cruz province. She Exchange rates (per USD): 3.70 (6 May 2009); 3.18 (6
May 2008)
was 64 first elected to the Senate in 1995, and in
Economic aid-recipient: $99.66 million (2005)
1997 to the Chamber of Deputies. In 2001 she won a
Debt-external: $135.5 billion (31 Dec. 2008 est.)
seat in the Senate again. Born on February 19, 1954, Stock of direct foreign investment: $69.1 billion-at home;
in La Plata, Buenos Aires, she studied law at the $26.81 billion-abroad (2008 est.)
National University of La Plata. She and her husband Market value of publicly traded shares: $52.31 billion
were married in March 1975 and have two children. (31 Dec. 2008)
Distribution of family income-Gini index: 49.0 (Jan-Mar.
2007)
Argentina Polity Political party: Frente para la Victoria
Unemployment rate: 7.8% (Sep. 2008)
(FV)/Justicialist Party
Labour force: 16.27 million (2008 est.) [urban areas only]
Head of State: President Cristina Fernandez de Kirchener
38th (world rank, 2008)
Most recent election: 28 Oct 2007
Oil Production: 29th (world rank, 2008)
Government: Lower House — Majority; Upper House —
Oil Consumption: 21st (world rank, 2008)
Majority
Natural Gas Production: 18th (world rank, 2008)
Political system: Presidential Legislature: Bicameral,
Natural Gas Consumption: Military 1.3% of GDP; 120th in
elected Chamber of Deputies, elected Senate
world rank (2005)
Capital: Buenos Aires
Military Expenditures: Markets
Official language: Spanish
MERV index: 2,352.760 (10 Jan 2010)
Economy Currency: Peso (P)
% change on 31 Dec. 2008: +30.6 (local currency); +21.8 ($
GDP (official exchange rate): $324.8 billion (2008 est.)
terms)
Predicted change: -2.5% (2009); 1.5% (2010)
Trade balance: $13.6 billion (last 12 months, May. 2009)
Composition by sector: 9.2%-agriculture; 34.1%-industry;
Trade to GDP ratio: 45.2 (2006-2008)
56.7%-services (2008 est.)
Exports: $70.02 billion f.o.b. (2008 est.)
Central Bank interest rate: NA
Top export partners: Brazil (18.9%); E.U. (18.8%); China
Official reserve assets: $48,908.23 million (Oct. 2009)
(9.1%); United States (7.9%); Chile (6.7%) (2008)
Foreign currency reserves: $43,752.38 (Oct. 2009) [in
Imports: $54.56 billion f.o.b. (2008 est.)
convertible foreign currencies]
Top import partners: Brazil (31.3%); EU (15.7%); China
Securities: $5,116.79 million (Oct. 2009)
(12.4%); U.S. (12.2%); Paraguay (3.1%) (2008)
IMF reserve position: $0.31 million (Oct. 2009)
69 Special Drawing Rights: $ 3,216.86 million (Oct. 2009)
Gold: $1,829.02 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped]
Financial derivatives: $ -54.47 million (Oct. 2009)
Loans to nonbank residents: $130.66 million (Oct. 2009)
Other reserve assets: $33.48 million (Oct. 2009)
(IMF Commercial Bank prime lending rate: 28.00%
(2009, 28 Nov. 2008)
Stock of money: $33.93 billion (31 Dec. 2007)
**
6XPPLW


*OPUH
China’s Hu Jintao has
been president of the
People’s Republic of
China since March 15,
2003. He replaced Jiang
Zemin, who had held the
position since 1989. Hu
also serves as general
secretary of the Com-
munist Party of China’s
(CPC) Central Commit-
tee and chair of the Central Military Commission. Be-
fore entering into politics he worked as an engineer.
He joined the CPC in April 1964, and began working
with the party in 1968. In 1992, he was elected to the
Standing Committee of the Political Bureau of the CPC
Central Committee and re-elected in 1997. He became
vice-president of China in March 1998 and vice-chair
of the Central Military Commission in 1999. In Novem-
ber 2002, Hu was elected general secretary of the CPC
Central Committee. He was born in Jiangyan, Jiangsu,
on December 21, 1942. In 1965 he received his engi-
neering degree from Tsinghua University. He is married
to Lui Yongqing and they have two children.
Political party: Communist Party of China
Most recent election: 15 Mar 2008
Government: Single House — Majority
Political system: Presidential
Legislature: Unicameral, elected National Congress
Capital: Beijing
Official language: Mandarin
Currency: Yuan (¥)
GDP (real): $4. 327 trillion (2008 est.)
Predicted change: 6.1% (Q1 2009); 6.5% (2009)
Composition by sector: 11.3%-agriculture; 48.6%-indus-
try; 40.1%-services (2008 est.)
Central Bank interest rate: 5.31% (22 Dec. 2008)
Official reserve assets: NA
Foreign currency reserves: 1, 953.7 billion (Mar. 2009)
Securities: NA
IMF reserve position: $1,286.78 million (Feb. 2009)
Special Drawing Rights: NA
Gold: $14,969.06 million (Nov. 2007)
Financial derivatives: NA
Loans to nonbank residents: NA
Other reserve assets: NA
Commercial Bank prime lending rate: 5.31% (31 Dec.
2008)
Stock of money: $2.434 trillion (31 Dec. 2008)
Stock of quasi money: $4.523 trillion (31 Dec. 2008)
Stock of domestic credit: $4.653 trillion (31 Dec. 2008)
Household income or consumption by % share:
1.6%-lowest 10%; 34.9%-highest 10% (2004)
Inflation rate (consumer prices): 6.0% (2008 est.)
Investment (gross fixed): 40.2% of GDP (2008 est.)
Current account balance: $400.7 billion (latest year, Q2
2008)
Budget: $847.8 billion-revenues; $861.6 billion-expendi-
tures (2008 est.)
Budget balance: -3.5% of GDP (2009)
Public debt: 15.7% of GDP (2008 est.) [cumulative debt of
all government borrowing]
75 Exchange rates (per USD): 6.82 (May 2009); 6.99 (Mar.
2008)
Economic aid-recipient: $1.331 billion (2007) [ODA]
Debt-external: $420.8 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $758.9 billion-at
home (2007 est.); $149.33 billion-abroad (2008 est.)
Market value of publicly traded shares:
$2.794 trillion (31 Dec. 2008)
Distribution of family income-Gini index: 47.0 (2007)
Unemployment rate: 4.0% (2008 est.)
Labour force: 807.3 million (2008 est.) 5th (world rank,
2008)
Oil Production: 3rd (world rank, 2008)
Oil Consumption: 11th (world rank, 2008)
Natural Gas Production: 12th (world rank, 2008)
Natural Gas Consumption: Military
4.3% of GDP; 25th in world rank (2006)
Military Expenditures: Markets
SSEA index: 3,397.15 (10 Jan. 2010)
% change on 31 Dec. 2008: +42.3 (local currency); +42.4 ($
terms)
SSEB index ($ terms): 255.75 (10 Jan. 2010)
% change on 31 Dec. 2008: +52.0 (local currency); +52.0 ($
terms)
Trade balance: $316.9 billion (latest year, Mar. 2009)
Trade to GDP ratio: 73.4 (2006-2008)
Exports: $1.435 trillion (2008 est.)
Top export partners: E.U. (20.5%); U.S. (17.7%); Hong
Kong, China (13.4%); Japan (8.4%); Japan (8.1%); South
Korea (5.2%) (2008)
Imports: $1.074 trillion (2008 est.)
Top import partners: Japan (13.3%); E.U. (11.7%); South
Korea (9.9%); Taipei, Chinese (9.1%); China (8.2%) (2008)
**
6XPPLW

 )YHaPS
Brazil’s Luiz Inácio 72 Stock of money: $95.03 billion (31 Dec. 2008)
Lula da Silva first Stock of quasi money: $724.5 billion (31 Dec. 2008)
Stock of domestic credit: $1.249 trillion (31 Dec. 2008)
assumed the office
Household income or consumption by % share: 0.9%-low-
of the president on
est 10%; 44.8%-highest 10% (2004)
January 1, 2003, af- Inflation rate (consumer prices): 5.7% (2008 est.)
ter being successfully Investment (gross fixed): 19% of GDP (2008 est.)
elected in October Current account balance: $-23.0 billion (latest year, Mar.
2002. He was re-elect- 2009)
Budget: NA
ed in October 2006,
Budget balance: -2.0% of GDP (2009 est.)
extending his term until
Public debt: 38.8% of GDP (2008 est.)
January 2011. “Lula” first ran for office in 1982 in the Exchange rates (per USD): 2.12 (6 May 2009); 1.67 (6
state of Sao Paulo, but it was not until 1986 that he May 2008)
was first elected to congress. He did not run for re- Economic aid-recipient: $191.9 million (2005)
election in 1990. Instead, he became more involved in Debt-external: $262.9 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $294 billion-at home;
the Workers’ Party, where he continued to run for the
$127.5 billion-abroad (2008 est.)
office of the president. He was born in Caetés, Per-
Market value of publicly traded shares: $589.4 billion
nambuco, Brazil, on October 27, 1945. He received no (31 Dec. 2008)
formal education and began working in a copper press- Distribution of family income-Gini index: 56.7 (2005)
ing factory at the age of 14. He became heavily involved Unemployment rate: 8.5% (Feb. 2008)
in the workers unions at a young age. He is married to Labour force: 100.9 million (2008 est.)
Military 2.6% of GDP; 62nd in world rank (2006)
Marisa Letícia and has five children.
Military Expenditures: Markets
BVSP index: 70,262.7031 (10 Jan. 2010)
Political party: Workers’ Party (PT)
% change on 31 Dec. 2008: +37.1 (local currency); +50.7 ($
Head of State: President Luiz Lula de Silva
terms)
Most recent election: tenacious 29 Oct 2006
Trade balance: $27.0 billion (latest year, Apr. 2009)
Government: Lower House — Minority; Upper House —
Trade to GDP ratio: 26.2 (2006-2008)
Minority
Exports: $197.9 billion f.o.b. (2008 est.)
Political system: Presidential
Top export partners: E.U. (23.5%); U.S. (14%); Argentina
Legislature: Bicameral, elected Chamber of Deputies,
(8.9%); China (8.3%); Japan (3.1%)
elected Senate
(2008)
Capital: Brasilia
Imports: $173.1 billion f.o.b. (2008 est.)
Official language: Portuguese
Top import partners: E,U, (20.9%); U.S. (14.9%); China
Economy Currency: Real (R)
(11.6%); Argentina (7.7%); Japan (3.9%); (2008)
GDP (official exchange rate): $1.573 trillion (2008 est.)
13th (world rank, 2008)
Predicted change: -13.6% (Q1 2009); -1.5% (2009)
Oil Production: 8th (world rank, 2008)
Composition by sector: 6.7%-agriculture; 28%-industry;
Oil Consumption: 39st (world rank, 2008)
65.3%-services (2008 est.)
Natural Gas Production: 32nd (world rank, 2008)
Central Bank interest rate: 10.25% (29 Apr. 2009)
Natural Gas Consumption:
Official reserve assets: $231,122.62 million (Oct. 2009)
Foreign currency reserves: $220,508.37 million (Oct.
2009) [in convertible foreign currencies]
Securities: $211,853.59 million (Oct. 2009)
IMF reserve position: $645.14 million (Oct. 2009)
Special Drawing Rights: $4,590.38 million (Oct. 2009)
Gold: $1,123.69 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped
Financial derivatives: $1.12 million (Oct. 2009)
Loans to nonbank residents: $65.55 million (Oct. 2009)
Other reserve assets: $4,188.38 million (Oct. 2009)
Commercial Bank prime lending rate: 47.25% (31 Dec.
2008)
**
6XPPLW


**
6XPPLW


 (\Z[YHSPH
Australia’s Kevin Rudd
became prime minister
of Australia on Decem-
ber 3, 2007, replacing
John Howard, who had
held the position since
1996. Before enter-
ing into politics, Rudd
worked for the Depart-
ment of Foreign Affairs,
where he held posts in Stockholm, Sweden and, Chi-
na. He also spent time as a political staffer and held
positions that included chief of staff for the premier of
Queensland and director general of the office of the
Queensland cabinet. Rudd first ran for office in 1996,
but was not successfully elected until 1998. Since then
he has served in various positions including shadow
minister of foreign affairs and leader of the opposition.
He was born in Nambour, Queensland, on September
21, 1957. He earned a bachelor’s degree Asian stud-
ies at Australian National University in 1981, where he
focused on Chinese language and history. He and his
wife, Thérèse Rein, have three children.
Political party: Australian Labour Party
Head of State: Prime Minister Kevin Rudd
Most recent election:
24 Nov 2007
Government: Lower House — Majority; Upper House —
Minority
Political system: Parliamentary
Legislature: Bicameral, elected House of Representatives,
elected Senate
Capital: Canberra
Official language: English
Economy Currency: Australian dollar (A$)
GDP (official exchange rate): $1.013 trillion (2008 est.)
Predicted change: -2.1% (Q1 2009); -0.7% (2009)
Composition by sector: 2.5%-agriculture; 26.4%-industry;
71.1%-services (2008 est.)
Central Bank interest rate: 3.00% (7 Apr. 2009)
Official reserve assets: $44,768.56 million (Oct. 2009)
Foreign currency reserves: $39,912.34 (Oct. 2009) [in
convertible foreign currencies]
Securities: $34,500.12 million (Oct. 2009)
IMF reserve position: $1,143.96 million (Oct. 2009)
Special Drawing Rights: $ 4,680.67 million (Oct. 2009)
Gold: $2,661.04 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped]
**
6XPPLW

Financial derivatives: $ -0.66 million (Oct. 2009)
Loans to nonbank residents: $0.00 (Oct. 2009)
Other reserve assets: $371.20 million (Oct. 2009)
Commercial Bank prime
lending rate: 8.91% (31 Dec. 2008)
Stock of money: $298.5 billion (31 Dec. 2007)
Stock of quasi money: $667.2 billion (31 Dec. 2007)
Stock of domestic credit: $1.312 trillion (31 Dec. 2007)
Household income or consumption by % share:
0.9%-lowest 10%; 38.2%-highest 10% (2004)
Inflation rate (consumer prices): 4.4% (2008 est.)
Investment (gross fixed): 27.6% of GDP (2008 est.)
Current account balance: $-44.1 billion (latest year, Q4
2008)
Budget: $350.3 billion-revenues; $332.4 billion-expendi-
tures (2008 est.)
Budget balance: -3.3% of GDP (2009)
Public debt: 14.7% of GDP (2008 est.)
Exchange rates (per USD): 1.34 (6 May. 2009); 1.06 (6
May. 2008)
Economic aid-donor: $2.9899 billion (2006-2007 expect-
ed) [ODA]
Debt-external: $799.8 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $366.5 billion-at
home; $197.2 billion-abroad (2008 est.)
Market value of publicly traded shares: $1.298 trillion
(31 Dec. 2007)
Distribution of family income-Gini index: 30.5 (2006)
Unemployment rate: 4.2% (Dec. 2008)
Labour force: 11.25 million (2008 est.)
71 30th (world rank, 2008)
Oil Production: 21st (world rank, 2008)
Oil Consumption: 20th (world rank, 2008)
Natural Gas Production: 26th (world rank, 2008)
Natural Gas Consumption: Military
2.4% of GDP; 69th in world rank (2006)
Military Expenditures: Markets
All Ord. index: 4,981.400 (10 Jan. 2010)
% change on 31 Dec. 2008: +4.9 (local currency); +11.2 ($
terms)
Trade balance: $+5.2 billion (latest year, Mar. 2009)
Trade to GDP ratio: 46.1(2006-2008)
Exports: $189.9 billion (2008 est.)
Top export partners: Japan (22.8%); China (14.6%); E.U.
(10.5%); Korea, Republic of (8.3%); India (6.1%) (2008)
Imports: $194.2 billion (2008 est.)
Top import partners: E.U (21%); China (15.6%); U.S.
(12%); Japan (9%); Singapore (7.2%) (2008)
**
6XPPLW


 :V\[O(MYPJH
South Africa’s Jacob Zuma
became president of South
Africa on May 9, 2009,
succeeding Petrus Kgalema
Motlanthe, who had held the
position since September
2008. Zuma joined the ANC
in 1958 and started serving
in the National Executive
committee of the African
National Congress (ANC) in
1977. In 1994, Zuma was
elected National Chair of
the ANC and chair of the ANC in KwaZulu-Natal. He was
re-elected to the latter position in 1996 and selected as the
deputy president of the ANC in December 1997. Zuma was
appointed executive deputy president of South Africa in
1999. He held that position until 2005 and was elected ANC
president at the end of 2007. He was born April 12, 1949, in
Inkandla, KwaZulu-Natal Province. He has three wives and
several children.
Political party: African National Congress
Chief of State: President Jacob Zuma
Head of State: President Jacob Zuma
Most recent election: 22 Apr 2009
Government: Lower House — Majority; Upper House —
Majority Political system: Parliamentary
Legislature: Bicameral, elected National Assembly, elected
National Council of Provinces Capital: Pretoria
Official language: Afrikaans, English 49,052,489; country
comparison to the world: 24th (July 2009 est.)
Population: 0.281%; country comparison to the world:
173rd (2009 est.)
Population Growth Rate: NA
Economy Currency: Rand (R)
GDP (official exchange rate): $276.8 billion (2008 est.)
Predicted change: 1.0% (Q4 2008); -1.8% (2009)
89 Composition by sector: 3.3%-agriculture; 33.7%-in-
dustry; 63.0%-services (2008 est.)
Central Bank interest rate: 7.0% (7 Jan. 2009)
Official reserve assets: $39,789.00 million (Oct. 2009)
Foreign currency reserves: $32, 764.00 million (Oct.
2009) [in convertible foreign currencies]
Securities: $1,518.00 million (Oct. 2009)
IMF reserve position: $0.00 (Oct. 2009)
Special Drawing Rights: $2,838.20 million (Oct. 2009)
Gold: $4,186.90 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped]
Financial derivatives: $0.00 (Oct. 2009)
Loans to nonbank residents: $0.00 (Oct. 2009)
Other reserve assets: $0.00 (Oct. 2009)
Commercial Bank prime lending rate: 15.13% (31 Dec.
2008)
** Stock of money: $44.66 billion (31 Dec. 2008)
6XPPLW Stock of quasi money: $124.1 billion (31 Dec. 2008)

Stock of domestic credit: $214.8 billion (31 Dec. 2008)
Household income or consumption by % share:
1.3%-lowest 10%; 44.7%-highest 10% (2000)
Inflation rate (consumer prices): 11.3% (2008 est.)
Investment (gross fixed): 23.2% of GDP (2008 est.)
Current account balance: $-12.0.0 billion (latest year, Q3
2009)
Budget: $77.43 billion-revenues; $79.9 billion-expenditures
(2008 est.)
Budget balance: -5.0% of GDP (2009)
Public debt: 31.6% of GDP (2008 est.) [cumulative debt of
all government borrowing]
Exchange rates (per USD): 7.33 (7 Jan 2010); 8.47 (May
2009); 7.52 (May 2008)
Economic aid-recipient: $597.18 million (2007)
Debt-external: $71.81 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $120 billion-at home;
$63.57 billion-abroad (31 Dec. 2008 est.)
Market value of publicly traded shares: $491.3 billion
(31 Dec. 2008)
Distribution of family income-Gini index: 65.0 (2005)
Unemployment rate: 24.5% (Sept 2009)
Labour force: 17.79 million (2008 est.) [economically active]
41st (world rank, 2008)
Oil Production: 30th (world rank, 2008)
Oil Consumption: 53rd (world rank, 2008)
Natural Gas Production: 54th (world rank, 2008)
Natural Gas Consumption: Military 1.7% of GDP; 98th
world rank (2006)
Military Expenditure: Markets
JSE AS index: 27,998.87 (6 Jan. 2010)
% change on 31 Dec. 2008: +1.3 (local currency); -10.6 ($
terms)
Trade balance: $-2.5 billion (latest year, Nov. 2009)
Trade to GDP ratio: 62.1 (2005-2007)
Exports: $86.12 billion f.o.b. (2008 est.)
Top export partners: U.S. (11.1%); Japan (11.1%); Ger-
many (8.0%); UK (6.8%); China (6.%); Netherlands (5.2%)
(2008)
90 Imports: $90.57 billion f.o.b. (2008 est.)
Top import partners: Germany (11.2%); China (11.1%);
U.S. (7.9%); Saudi Arabia (6.2%); Japan (5.5%); UK (4.0%)
(2008)
**
6XPPLW


 0UKPH
India’s Manmohan Singh
was re-elected prime
minister of India in May
2009. He was first elected
in 2004 when he replaced
Atal Bihari Vajpayee. Be-
fore entering into politics,
Singh worked as an econ-
omist, including for the
International Monetary
Fund. He was governor of
the Reserve Bank of India
from 1982 to 1985. Singh was first elected to the upper
house of Indian parliament in 1995. He was re-elected
in 2001 and 2007 and held cabinet positions includ-
ing minister of finance and minister for external affairs.
Singh also served as minister of finance from November
2008 to January 2009. He was born in Gah, Punjab
(now known as Chakwal district, Pakistan), on Septem-
ber 26, 1932. He received his bachelor’s and master’s
degrees from Punjab University in 1952 and 1954.
He also received an additional undergraduate degree
from Cambridge University in 1957 and a PhD from
Oxford University in 1962. He and his wife, Gursharan
Kaur, have three children.
Political party: Indian National Congress
Head of Government: Prime Minister Manmohan Singh
Most recent election: July 2007
Government:Lower House — Majority (coalition); Upper
House — Majority
Political system: Parliamentary
Legislature: Bicameral, elected Assembly, indirectly elected
Council of States Capital: Delhi
Official language: Hindi
Economy Currency: Indian rupee (Rs)
GDP (official exchange rate): $1.207 trillion (2008 est.)
Predicted change: 5.3% (Q4 2008); 5.0% (2009)
Composition by sector: 17.2%-agriculture; 29.1%-indus-
try; 53.7%-services (2008 est.)
Central Bank interest rate: 4.75% (21 Apr. 2009)
Official reserve assets: $284,391.00 million (Oct. 2009)
Foreign currency reserves: $266,768.00 million (Oct.
2009) [in convertible foreign currencies]
Securities: $150,662.00 million (Oct. 2009)
IMF reserve position: $1,581.00 million (Oct. 2009)
Special Drawing Rights $5,242.00 (Oct. 2009)
Gold: $10,800.00 million (Oct. 2009) [including gold depos-
its and, if appropriate,
gold swapped]
Financial derivatives: $0.00 (Oct. 2009)
** Loans to nonbank
6XPPLW

79 residents: $0.00 (Oct. 2009)
Other reserve assets: $0.00 (Oct. 2009)
Commercial Bank prime lending rate: 8.5% (31 Jan.
2009)
Stock of money: $250.9 billion (31 Dec. 2007)
Stock of quasi money: $647.3 billion (31 Dec. 2007)
Stock of domestic credit: $769.3 billion (31 Dec. 2007)
Household income or consumption by % share:
3.6%-lowest 10%; 31.1%-highest 10% (2004)
Inflation rate (consumer prices): 7.8% (2008 est.)
Investment (gross fixed): 39% of GDP (2008 est.)
Current account balance: $-37.5 billion (latest year, Q4
2008)
Budget: $126.7 billion-revenues; $202.6 billion-expendi-
tures (2008 est.)
Budget balance: -7.7% of GDP (2009)
Public debt: 78.0% of GDP (2008 est.) [cumulative debt of
all government borrowing]
Exchange rates (per USD): 49.6 (7 May 2009); 41.4 (May.
2008)
Economic aid-recipient: $903.19 million (2007)
Debt-external: $229.3 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $144.2 billion-at
home; $61.77 billion-abroad (2008 est.)
Market value of publicly traded shares: $650 billion (31
Dec. 2008)
Distribution of family income-Gini index: 36.8 (2004)
Unemployment rate: 9.1% (2008 est.)
Labour force: 523.5 million (2008 est.)
23rd (world rank, 2008) Oil Production: 5th (world rank,
2008)
Oil Consumption: 26st (world rank, 2008)
Natural Gas Production: 19th (world rank, 2008)
Natural Gas Consumption: Military
2.5% of GDP; 66th in world rank (2006)
Military Expenditures: Markets
BSE index: 17,672.09 (6 May 2010)
% change on 31 Dec. 2008: +23.9 (local currency); +21.7 ($
terms)
Trade
Trade balance: $-109.0 billion (latest year, Mar. 2009)
Trade to GDP ratio: 47.6 (2006-2008)
Exports: $187.9 billion (2008 est.)
Top export partners: E.U. (21.6%); U.S. (11.8%); UAE
(10.5%); China (5.6%); Singapore (4.9%) (2008)
Imports: $315.1 billion (2008 est.)
Top import partners: E.U. (13.9%); China (10.0%); U.S.
(7.8%); Saudi Arabia (7.3%); UAE (6.2%)
(2008)
**
6XPPLW


:[H[L)HURVM0UKPH*HUHKH
State Bank of India (Canada), a wholly owned sub-
sidiary of the State Bank of India, Mumbai, India (ranked
third amongst Global Banks by Morgan Stanley for to-
tal shareholder return in 2008) has been operating in
Canada since 1982, as a Schedule II Bank. Incorporat-
ed in Canada, it caters to the whole gamut of banking
services to the Canadian public and South Asian com-
munity. Through its branches in Toronto, Mississauga,
Scarborough and Brampton in GTA, Ontario and Van-
couver, Surrey and Abbotsford in British Columbia, the
State Bank of India (Canada) caters to all sections of
the economy and plays a major role in fostering major
trade flows between India and Canada through its Trade
finance wing and extends financial and advisory support
to Canadian and Indian MNCs. The Product Offerings
include Deposits, Loans (Retail and Corporate), Mort-
gages (Residential and Commercial), Lines of Credit,
Trade Finance, NRI Services and Remittances, Credit
Card and Debit Card Facility with Internet Banking for
the Retail Banking customer.
State Bank of India, the parent of SBIC, is the larg-
est commercial bank in India. With a rich heritage of
over 200 years of banking history and trust, intertwined
with the economy of India, network spread over 16,000
group branches, the State Bank of India has a visionary
as a chairman, Mr. O.P. Bhatt, who has rightly been cho-
sen for the QFC-Asian Banker Leadership Achievement
Award for the Asia Pacific region for the year 2010 by
Asia Money Magazine. Under his dynamic leadership,
the Bank has won many laurels and the market share of
SBI has registered significant increase, besides register-
ing a whopping profit of $2.2 billion Canadian dollars
(Indian Rs 91.66 billion) for 2009-10 (despite the slow
down in the economy), underscoring the fact that the re-
cession witnessed across the globe had minimal impact
on the Bank. Deposits grew by 27 percent and Loan
portfolio grew by 17 percent YOY. The State Bank of
India has been ranked BEST BANK 2009 by the Banker
magazine in London, for the second year in a row, and
moved up to 150th spot in Forbes 2000 list of largest
companies in the World.
State Bank of India (Canada), opened three branch-
es in the last three years and has been steadily increas-
ing its product range and services to the public user.
It launched its Credit Card product in October 2006,
in partnership with MBNA Canada Bank, with Master
card—Cirrus backing. In July 2008, it offered a Debit
card product for its customers to facilitate drawing upon
their funds through ATMs and POS transactions around
the clock. The Bank has also started setting up ATMs in
all its branches for convenience of its customers and a
part of a large network. This has paved the way for many
of its customers moving their principal account to SBIC.
Mr. Arun Nagarajan, President and CEO has stated
that SBI Canada is growing at a steady pace by servic-
ing existing clients’ needs with staunch loyalty and at the
same time building new client relationships, paving the
way for an increased growth and market share.
The President of SBIC averred that the Money Trans-
fer Product of State Bank of India (Canada), was one of
the premier products, which facilitates credit to the ben-
eficiary’s account in India, in Indian Rupees within one
business day. Money in Indian Rupees could be sent at
a nominal charge of $8 per transaction with very attrac-
tive exchange rates. The wide network of over 12,500
branches of the parent Bank, in core-banking platform
in India and the fact that the amount is credited within
one business day were strong contributory factors to the
popularity of the product, which is widely used by Indo-
Canadians and business houses as well. For credit to
other Bank account holders in India, it takes another day
for the credit to reach their account. Faster remittances
in Foreign Currency are also done by the Bank through
its wide network of branches.
For the retail customer, SBIC offers Savings/Check-
ing Accounts, High Interest yielding Super Saver Ac-
count (a hybrid account with GIC and Checking account
benefits), Term Deposits (GIC), Debit Card, Co–branded
Credit card, Money Transfer Product, RRSP and also the
recently introduced Tax Free Savings Account, which is
popular with high interest offered.
SBIC has different schemes for lending for business,
commercial and individual customers. It offers competi-
tive interest rates for Residential mortgages, CMHC in-
sured mortgages; Commercial Mortgage for business
requirements are also offered. Line of Credit and Com-
mercial loans are also made available for the business
community. Syndicated loan facilities are extended to
large borrowers.
SBIC offers a variety of trade finance opportunities
with India and other global destinations leveraging Par-
ent Bank’s network of 141 offices in 32 countries cov-
ering all time zones. With correspondent banking rela-
tionship through the parent bank with over 350 Banks
across the world, SBIC is the perfect channel for cost
effective and customized solutions. SBIC also has a
strong association with Export Development Canada
and works in close partnership with them to serve the
interest of corporate customers.
With an eye on capturing the market share, Mr. Arun
Nagarajan has stated that SBIC is keenly exploring the
opportunities for expansion in Canada in provinces like
Alberta and Quebec where there are a lot of opportuni-
ties. The Bank has a dedicated team of staff drawn from
various ethnic communities and also from the Parent
Bank, with focus on customer service and loyalty. The
Bank is well positioned to leverage the strength of the
Parent Bank, provide Canadian business houses part-
nership opportunities for growth in Canada, facilitate
business initiatives in India and across the globe, and be
a harbinger of prosperity and development.
**
6XPPLW

 9L]LSSPUNPU9V`HS0ZSHUK
Fit for Prime Ministers,
Presidents and Chancellors
Legend has it that the island of
Horubadhoo was once home to
the kings of the Maldives and
it is therefore appropriate that
the Royal Island Resort & Spa is
located here
Not only kings but also the
grandmother of Boduthakurufaan,
one of the great Maldivian heroes,
made the island her home and was
buried here. As a reminder of the is-
land’s regal past, a stone bath used
by royalty is still preserved on Ho-
rubadhoo.
Treat yourself royally
Pristine white sands, emerald
and turquoise seas filled with bright-
ly coloured fish and lush green veg-
etation – these are the hues of para-
dise. And you’ll find this and much
more when you book a stay at Royal
Island Resort & Spa.
The resort has two suites – the
Han’dhu and Iru Suites – that are
fit for kings and queens. One suite
is situated on the sunrise tip of the
island while the other makes the
** most of the glorious sunsets. The
6XPPLW

dining rooms in the suites seat eight
comfortably and each bedroom is
king-size. All rooms, including the
lounge are beautifully decorated and
furnished – a symphony of carved
wood, marble and richly coloured
textiles. But with surroundings as
stunning as these, you will want to
drag yourself away from the sump-
tuous interior to enjoy the spacious
verandah, private beach leading to
the lagoon, swimming pool and Ja-
cuzzi.
Those staying in Royal Island’s
beach villas also enjoy the ultimate
in luxury and privacy as they are
dotted about the island amongst
the palm trees, surrounded by lush
vegetation. Uniquely in this part of
the world, the villas are made from
Merbau wood and are furnished
and decorated in exquisite style.
Each one faces the beach and is
equipped with air-conditioning, sat-
ellite TV with in-house films, internet
access and luxurious bathroom with
delightful open-air shower.
Pleasure palace
To further increase your pam-
pering, Royal Island’s spa is the ul-
timate in luxury. In the local Dhivehi
language, the name Araamu means
both comfort and pleasure with ev-
ery good feeling between the two!
So you’re in for a treat with the Ara-
amu Spa. The spa complex consists
of five traditional-style wooden pavil-
ions, five air-conditioned treatment
rooms, steam and sauna rooms,
sunken Jacuzzis and baths. The
best and most relaxing treatments
from around the world can be en-
joyed – make your choice from Thai,
Indonesian, Indian, Swedish, Hawai-
ian or Maldivian treatments or take
advantage of them all! The treat-
ments themselves include the use
of indigenous herbs, oils and flow-
ers as well as renowned skincare
products. Apart from the relaxing
and beautifying treatments such as
aromatherapy, mud wraps and body
scrubs, the spa’s professional and
friendly staff also offer therapies for
arthritis, muscular problems, mi-
graine and other ailments. A favou-
rite with honeymooners, the Loabi
Loabi Romance treatment involves
massages and fragrant baths espe-
cially designed for couples.
Dream dining
The selection of fine dining op-
portunities means that guests of
Royal Island Resort can feast like
kings too. The best Maldivian spe-

cialities are served with care, as well
as Asian-style meals and interna-
tional cuisine – all with the emphasis
firmly on the freshest produce from
the sea and land. The bright coral
rock pool and tropical fish add vi-
brancy to the setting of Maakana
Restaurant where you can expect
fine selection of the international
cuisine everyday to satisfy you pal-
ate. Raabondhi Restaurant offers
the choice of eating indoors or out-
side while enjoying the delicious
Mediterranean-inspired dishes on
offer. Tempting snacks and creative
cocktails are available at the pool-
side Palm Terrace, as well as after-
noon tea, which reflects the island’s
attachment to its colonial past.
Royal Island Resort also fea-
tures three bars – the Boli Bar, de-
signed for relaxation with snooker
tables and a wide range of drinks;
the Pool Bar for chilling during the
day and the Fun Pub where you’ll
enjoy live music, a disco or create
your own entertainment with Kara-
oke sessions.
Time for a change
All this relaxing, pampering and
fine food will make you ready for
some action and here the choice
of activities will definitely tempt you
away from the pools, bars and res-
taurants.
Take part in some morning or
night fishing as each part of the day
offers something different for keen
anglers. Or try your hand at some-
thing a little more ambitious – big
game fishing is also on offer and
you could bag a large barracuda
or sailfish. If you’d rather just watch
the undersea world go by, try snor-
kelling on the coral reef or practise
your diving skills with professional
instructors from the resort’s Delphis
centre. If you’re a beginner, learn to
dive in a small group, ensuring that
you’ll get personal attention.
Other fun water activities include
sailing and catamaran cruising, wind
and kite surfing, jet skiing and the
exhilarating ‘Banana’riding.
One night, choose to recreate
your own Robinson Crusoe adven-
ture and ask to sleep on the desert-
ed island of Gemendoo. The resort
will drop you and your loved one off
Advertisement
with a delicious picnic to enjoy in
perfect solitude under the stars.
If you’d like to discover more
about the Maldives, choose one of
the resort’s Island Hopping or Hello
Neighbour excursions where you’ll
visit nearby islands and get to meet
the locals.
And, at the end of a perfect day,
you can watch the sun go down in
a blaze of colours while enjoying a
cocktail on a sunset cruise in a tra-
ditional dhoani. What a royally good
idea!
For further information: please
go to www.villahotels.com
‘All rooms are beautifully deco-
rated and furnished – a symphony of
carved wood, marble and richly co-
loured textiles – perfectly fit for kings
and queens’
‘In the local Dhivehi language,
the name Araamu means both com-
fort and pleasure with every good
feeling between the two’
‘The selection of fine dining op-
portunities means that guests of
Royal Island Resort can feast like
kings too’
**
6XPPLW

 0UKVULZPH
Indonesia’s Susilo Bam-
bang Yudhoyono re-elect-
ed president in July 2008.
He first became president
on October 20, 2004, af-
ter winning the election in
September, replacing the
incumbent Megawato Su-
karnoputri. Before enter-
ing into politics, he served
as a lecturer and a military
general. His first experi-
ence in politics came when he was appointed minis-
ter of mines and energy in 1999. He later served as
co-ordinating minister for politics and security. He was
born on September 9, 1949, in Pacitan, East Java. He
received his doctorate in agricultural economics from
the Bogor Institute of Agriculture in 2004. He and his
wife, Kristiani Herawati, have two children.
Political party: Democratic Party
80 Head of Government: President Susilo Bambang Yud-
hoyono
Most recent election: 8 July 2009
Government: Lower House — Minority; Upper House —
Political system: Presidential
Legislature: Bicameral, elected House of People’s Repre-
sentatives, elected House of Regional Representatives
Capital: Jakarta
Official language: Indonesian
Economy Currency: Rupiah (Rp) GDP (official exchange
rate): $511.8 billion (2008 est.)
Predicted change: 5.2% (Q4 2008); -1.4% (2009)
Composition by sector: 13.5%-agriculture; 45.6%-indus-
try; 40.8%-services (2008 est.)
Central Bank interest rate: 7.25% (May 2009)
Official reserve assets: $64,528.45 million (Oct. 2009)
Foreign currency reserves: $58,862.90 million (Oct. 2009)
[in convertible foreign currencies]
Securities: $57,439.61 million (Oct. 2009)
IMF reserve position: $230.90 (Oct. 2009)
Special Drawing Rights: $2,797.78 million (Oct. 2009)
Gold: $2,442.10 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped]
Financial derivatives: $0.00 (Oct. 2009)
Loans to nonbank residents: $0.00 (Oct. 2009)
Other reserve assets: $194.77 million (Oct. 2009)
Commercial Bank prime lending rate: 13.6% (31 Dec.
2008)
Stock of money: $41.71 billion (31 Dec. 2008)
Stock of quasi money: $131.5 billion (31 Dec. 2008)
Stock of domestic credit: $166.2 billion (31 Dec. 2008)
**
6XPPLW

Household income or consumption by % share:
3.0%-lowest 10%; 32.3%-highest 10% (2006)
Inflation rate (consumer prices): 11.1% (2008 est.)
Investment (gross fixed): 23.6% of GDP (2008 est.)
Current account balance: $7.3 billion (latest year, Mar
2009)
Budget: $92.62 billion-revenues; $98.88 billion-expendi-
tures (2008 est.)
Budget balance: -2.9% of GDP (2009)
Public debt: 29.3% of GDP (2008 est.) [cumulative debt of
all government borrowing]
Exchange rates (per USD): 10,410.0 (6 May 2009);
9,225.0 (May. 2008)
Economic aid-recipient: $362.09 million (2007 est.) [ODA]
Debt-external: $143.5 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $63.46 billion-at
home; $4.277 billion-abroad (2008 est.)
Market value of publicly traded shares: $98.76 billion
(31 Dec. 2008)
Distribution of family income-Gini index: 39.4 (2005)
Unemployment rate: 8.4% (Aug. 2008)
Labour force: 112.0 million (2008 est.) 22nd (world rank,
2008)
Oil Production: 17th (world rank, 2008)
Oil Consumption: 13th (world rank, 2008)
Natural Gas Production: Natural Gas Consumption: 24th
(world rank, 2008)
81 Military 3% of GDP; 50th in world rank (2005)
Military Expenditures: Markets
JSX index: 2,645.79 (10 Jan. 2010)
% change on 31 Dec. 2008: +32.7 (local currency); +38.9
($ terms)
Trade Trade balance: $7.3 billion (latest year, Mar. 2009)
Trade to GDP ratio: 60.4 (2005-2007)
Exports: $139.3 billion f.o.b. (2008 est.)
Top export partners: Japan (20.2%); E.U. (11.3%); U.S.
(9.5%); Singapore (9.4%); China (8.5%);
(2008)
Imports: $116 billion f.o.b. (2008 est.)
Top import partners: Singapore (16.9%); China (11.8%);
Japan (11.7%); E.U. (8.2%); Malaysia (6.9%);
(2008)
4L_PJV
Mexico’s Felipe Calderón
Hinojosa became presi-
dent of Mexico on De-
cember 1, 2006, replac-
ing Vicente Fox, who held
the position from 2000 to
2006. In his early twenties
Calderón was president
of the youth movement of
the National Action Party.
He later served as a local
representative in the leg-
islative assembly in the federal chamber of deputies.
In 1995 he ran for governor of Michaocán. He served
as secretary of energy from 2003 to 2004. Born in Mo-
relia, Michoacán, on August 18, 1962, he received his
bachelor’s degree in law from Escuela Libre de Derecho
in Mexico City. He later received a master’s degree in
economics from the Instituto Tecnológico Autónomo de
México as well as a master’s degree in public admin-
istration from Harvard University. He and his wife, Mar-
garita Zavala, have three children.
Political party: National Action Party
Chief of State: President Felipe Calderon
Head of Government: President Felipe Calderon
Most recent election: 2 Jul 2006
Government: Lower House — Minority; Upper House —
Minority
Political system: Federal Republic
Legislature: Bicameral, elected Federal Chamber of Depu-
ties, elected Senate
Capital: Mexico City
Official language: Spanish
111,211,789; country comparison to the world: 11th (July
2009 est.)
Population: 1.13%; country comparison to the world: 120th
(2009 est.)
Population Growth Rate: Economy
Currency: Mexican peso (PS)
GDP (official exchange rate ): $1.088 trillion (2008 est.)
Predicted change: -1.6% (Q4 2008); -4.4% (2009)
Composition by sector: 3.8%-agriculture; 35.2%-industry;
61%-services (2008 est.)
Central Bank interest rate: 6.0% (Apr. 2009)
Official reserve assets: NA
Foreign currency reserves: $88,867 million (Mar. 2009)
Securities: NA
IMF reserve position: SDR503.06 million (Apr. 2009)
Special Drawing Rights: $496 million (Mar. 2009)
Gold: 175 million (Mar. 2009)
Financial derivatives: NA
Loans to nonbank residents: NA
Other reserve assets: 637 Million (Mar 2009)
Commercial Bank prime lending rate: 8.71% (31 Dec.
2008) Stock of money: $92.34 billion (31 Dec. 2008)
Stock of quasi money: $147.4 billion (31 Dec. 2008)
Stock of domestic credit: $287 billion (31 Dec. 2008)
Household income or consumption by % share:
1.8%-lowest 10%; 37.9%-highest 10% (2006)
Inflation rate (consumer prices): 6.2% (2008 est.)
Investment (gross fixed): 22.1% of GDP (2008 est.)
Current account balance: $-11.2 billion (latest year, Q3.
2009)
Budget: $257.1 billion-revenues; $258.1 billion-expendi-
tures (2008 est.)
Budget balance: -4.0% of GDP (2009)
Public debt: 35.8% of GDP (2008 est.) [cumulative debt of
all government borrowing]
Exchange rates (per USD): 12.78 (7 Jan 2010);14.2 (Mar.
2009); 10.7 (Mar. 2008)
Economic aid-recipient: $78.95 million (2007)
Debt-external: $200.4 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $289.8 billion-at
home; 45.39 billion-abroad (Dec 31 2008 est.)
Market value of publicly traded shares: $232.6 billion
(31 Dec. 2008)
Distribution of family income-Gini index: 47.9 (2006)
Unemployment rate: 5.3% (Nov. 2009 est.)
Labour force: 45.32 million (2008 est.) 7th (world rank,
2008)
Oil Production: 12th (world rank, 2008)
Oil Consumption: 17th (world rank, 2008)
Natural Gas Production: 13th (world rank, 2008)
Natural Gas Consumption: Military
0.5% of GDP; 161st in world rank (2006)
Military Expenditures: Markets
IPC index: 32,952.82 (5 Jan. 2010)
% change on 31 Dec. 2008: +6.8 (local currency); +11.7 ($
terms)
Trade balance: $-6.5 billion (latest year, Nov. 2009)
Trade to GDP ratio: 64.5 (2005-2007)
Exports: $291.3 billion f.o.b. (2008 est.)
Top export partners: U.S. (80.2%); Canada (2.4%); Ger-
many (1.7%) (2008)
Imports: $308.6 billion f.o.b. (2008 est.)
Top import partners: U.S. (49.%); China (11.2%); Japan
(5.3%); South Korea (4.4%); Germany (4.1%) (2008)
**
6XPPLW

 :H\KP(YHIPH
Saudi Arabia’s King Commercial Bank prime lending rate: NA
Abdullah bin Adbul Aziz Al Stock of money: $113.2 billion (31 Dec. 2008)
Stock of quasi money: $134.3 billion (31 Dec. 2008)
Saud has been in power
Stock of domestic credit: $66.94 billion (31 Dec. 2007)
since August 2005. He
Household income or consumption by % share: NA
replaced Fahd bin Abdul Inflation rate (consumer prices): 9.9% (2008 est.)
Aziz Al Saud, who had Investment (gross fixed): 19.4% of GDP (2008 est.)
reigned since June 1982. Current account balance: $134.0 billion (2008 est.)
As crown prince since Budget: $293.7 billion-revenues; $136.0 billion-expendi-
tures (2008 est.)
1987, King Abdullah had
Budget balance: -0.9% of GDP (2009)
previously acted as de
Public debt: 18.9% of GDP (2008 est.) [cumulative debt of
facto regent and thus rul- all government borrowing]
er since January 1, 1996, 88 Exchange rates (per USD): 3.75 (May 2009); 3.75 (May
after Fahd had been debilitated by a stroke. He was 2008)
formally enthroned on August 3, 2005. He also serves Economic aid: NA
Debt-external: $82.13 billion (31 Dec. 2008 est.)
as prime minister of Saudi Arabia and commander of
Stock of direct foreign investment:
the National Guard. King Abdullah is chair of the su-
$108.5 billion – at home; 18.07 billion – abroad (31 Dec.
preme economic 67 council, president of the High 2008 est.)
Council for Petroleum and Minerals, president of the Market value of publicly traded shares: $246.3 billion
King Abdulaziz Centre for National Dialogue, chair of (31 December 2008)
the Council of Civil Service and head of the Military Ser- Distribution of family income-Gini index: NA
Unemployment rate: 8.8 (local bank estimate 2008; other
vice Council. He was born August 1, 1924, in Riyadh
estimates vary significantly)
and has a number of wives and children.
Labour force: 6.74 million (2008 est.) [about 1/3 of the
population aged 15-64 is non- national] 1st (world rank,
Political party: None 2008)
Chief of State: King and Prime Minister Abdallah bin Abd Oil Production: 9th (world rank, 2008)
al-Aziz Al Saud Oil Consumption: 9th (world rank, 2008)
Head of State: King and Prime Minister Abdallah bin Abd Natural Gas Production: 11th (world rank, 2008)
al-Aziz Al Saud Natural Gas Consumption: Military 10% of GDP; 3rd in
Most recent election: None world rank (2005)
Government: None Military Expenditures: Markets
Political system: Absolute monarchy Tadawul index: 6,260.90 (6 Jan 2010)
Legislature: Monarchy % change on 31 Dec. 2008: +20.8 (local currency); +20.9 ($
Capital: Riyadh terms)
Official language: Arabic 28,686,633; country comparison Trade
to the world: 41st (July 2009 est.) Trade balance: $212.0 billion (latest year, 2008)
Population: 1.848%; country comparison to the world: 69th Trade to GDP ratio: 86.7 (2005-2007)
(2009 est.) Exports: $313.4 billion f.o.b. (2008 est.)
Population Growth Rate: NA Top export partners: U.S. (17.1%); Japan (15.2%); South
Economy Currency: Riyal (SR) Korea (10.1%); China (9.3%); India (7%); Singapore (4.4%)
GDP (official exchange rate ): $469.4 billion (2008 est.) (2008)
Predicted change: 4.2% (2008); -1.0% (2009) Imports: $108.3 billion f.o.b. (2008 est.)
Composition by sector: 3.1%-agriculture; 61.9%-industry; Top import partners: U.S. (12.2%); China (10.5%); Japan
35.0%-services (2008 est.) (7.7%); Germany (7.4%); South Korea (5.1%); Italy (4.8%);
Central Bank interest rate: NA India (4.2%); UK (4.1%) (2008)
Official reserve assets: NA
Foreign currency reserves: NA
Securities: NA
IMF reserve position: SDR 1,136.61 million (Feb. 2009)
Special Drawing Rights: NA
Gold: NA
Financial derivatives: NA
** Loans to nonbank residents: NA
6XPPLW Other reserve assets: NA

**
6XPPLW


 ;\YRL`
Turkey’s Recep Tayyip
Erdo an became prime
minister of Turkey on March
14, 2003, replacing Abdul-
lah Gül, who had occupied
the office since 2002. Before
becoming prime minister,
Erdo an was mayor of
Istabul from 1994 to 1998.
He was born on February
26, 1954, in Rize, Turkey,
and studied management at
Marmar University’s faculty
of economics and administrative sciences. He is married to
Emine Erdo an and has two children.
Political party: Justice and Development Party (AKP)
Chief of State: President Abdullah Gul
Head of State: Prime Minister Recep Tayyip Erddogan
Most recent election: 22 Jul 2007
Government: Single House — Majority
Political system: Parliamentary
Legislature: Unicameral, elected Grand National Assembly
Capital: Ankara
Official language: Turkish
76,805,524; country comparison to the world: 17th (July
2009 est.)
Population: 1.312; country comparison to the world: 102nd
(2009 est.)
Population Growth Rate:
Economy Currency: Turkish lira (YTL)
GDP (official exchange rate ): $730.0 billion (2008 est.)
Predicted change: -6.2.% (Q4 2008); -4.4% (2009)
Composition by sector: 8.8%-agriculture; 27.5%-industry;
63.8%-services (2008 est.)
Central Bank interest rate: 6.50% (7 Jan 2010)
Official reserve assets: $75,905.47 million (Nov. 2009)
Foreign currency reserves: $69,750.01 million (Nov. 2009)
[in convertible foreign currencies]
Securities: $65,330.62 million (Nov. 2009)
IMF reserve position: $181.00 million (Nov. 2009)
Special Drawing Rights: $1,559.00 million (Nov. 2009)
Gold: $4,415.46 million (Nov. 2009) [including gold deposits
and, if appropriate, gold swapped]
Financial derivatives: $0.00 (Nov. 2009)
Loans to nonbank residents: $0.00 (Nov. 2009)
Other reserve assets: $0.00 (Nov. 2009)
Commercial Bank prime lending rate: NA
Stock of money: $53.25 billion (31 Dec. 2008)
Stock of quasi money: $248.4 billion (31 Dec. 2008)
Stock of domestic credit: $326.4 billion (31 Dec. 2008)
**
6XPPLW

Household income or consumption by % share:
1.9%-lowest 10%; 33.2%-highest 10% (2005) Inflation rate
(consumer prices): 10.2% (2008 est.)
Investment (gross fixed): 20.3% of GDP (2008 est.)
Current account balance: $-11.4 billion (latest year, Oct.
2009)
Budget: $160.5 billion-revenues; $173.6 billion-expenditures
(2008 est.)
Budget balance: -6.3% of GDP (2009)
Public debt: 40% of GDP (2008 est.) [cumulative debt of all
government borrowing]
Exchange rates (per USD): 1.57 (6 May 2009); 1.25 (May
2008)
Economic aid-recipient: $237.45 million (2007)
Debt-external: $278.1 billion (31 Dec. 2008 est.)
Stock of direct foreign investment: $128.7 billion-at
home; $14.8 billion-abroad (31 Dec 2008 est.)
Market value of publicly traded shares: $117.9 billion
(31 Dec. 2008)
Distribution of family income-Gini index: 43.6 (2003)
Unemployment rate: 13.4% (Sept. 2009)
Labour force: 24.06 million (2008 est.) [about 1.2 million
Turks work abroad]
64th (world rank, 2008)
Oil Production: 27th (world rank, 2008)
Oil Consumption: 63rd (world rank, 2008)
Natural Gas Production: NA
Natural Gas Consumption: 23th (world rank, 2008)
Military 5.3% of GDP; 17th world rank (2005)
Military Expenditures: Markets
ISE index: 68,929.90 (6 Jan 2010) % change on 31 Dec.
2008: +25.5 (local currency); +23.6 ($ terms)
Trade balance: $-37.0 billion (latest year, Nov. 2009)
Trade to GDP ratio: 48.5 (2005-2007)
Exports: $140.7 billion f.o.b. (2008 est.)
Top export partners: Germany (9.8%); UK (6.2%); Italy
(5.9%); France (5%); Russia
(4.9%)(2008)
Imports: $193.9 billion f.o.b. (2008 est.)
Top import partners: Russia (15.5%); Germany (9.3%);
China (7.8%); U.S. (5.9%) Italy (5.5%); France (4.5%); Iran
(4.1%) (2008)
**
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**
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**
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 :V\[O2VYLH
South Korea’s Lee Myung-
bak became president on
February 25, 2008, re-
placing Roh Moo-hyun,
who had occupied the
position since 2003. Lee
joined the Hyundai
Construction company
in 1965 and eventually
became chief executive
officer of the Hyundai Group before being elected to
the Korean National Assembly in 1992. In 2002 he was
elected mayor of Seoul, a position he held until 2006.
He was born in Kirano, Osaka, Japan on December 19,
1941. He received a degree in business administration
from Korea University in 1965. Lee and his wife, Kim
Yun-ok, have four children.
Political party: Grand National Party
Chief of State: President LEE Myung-bak
Head of State: Prime Minister Chung Un-chan
Most recent election: 9 April 2008
Government: Single House — Majority
Political system: Presidential
Legislature: Unicameral, elected National Assembly
Capital: Seoul
Official language: Korean 48,508,972; country comparison
to the world: 25th (July 2008 est.)
Population: 0.266%; country comparison to the world:
178th (2009 est.)
Population Growth Rate: Economy
Currency: Won (W)
GDP (official exchange rate): $929.1 billion (2008 est.)
Predicted change: -4.3% (Q4 2009); -5.9% (2009)
Composition by sector: 3%-agriculture; 39.5%-industry;
57.6%-services (2008 est.)
Central Bank interest rate: 2.0% (7 Jan. 2010)
Official reserve assets: $264,187.00 million (Oct. 2009)
Foreign currency reserves: $259,436.00 million (Oct.
2009) [in convertible foreign currencies]
Securities: $235,776.00million (Oct. 2009)
IMF reserve position: $997.00 million (Oct. 2009)
Special Drawing Rights: $3,791.00 million (Oct. 2009)
Gold: $78.00 million (Oct. 2009) [including gold deposits
and, if appropriate, gold swapped]
Financial derivatives: $0.00 (Oct. 2009)
Loans to nonbank residents: $0.00 (Oct. 2009)
Other reserve assets: $-116.00 million (Oct. 2009)
Commercial Bank prime lending rate: 7.17% (31 Dec.
2008)
Stock of money: $80.66 billion (31 Dec. 2008)
Stock of quasi money: $478.0 billion (31 Dec. 2008)
** Stock of domestic credit: $937 billion (31 Dec. 2008)
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Household income or consumption by % share:
2.7%-lowest 10%; 24.2%-highest 10% (2007 est.)
Inflation rate (consumer prices): 4.7% (2008 est.)
Investment (gross fixed): 27.1% of GDP (2008 est.)
Current account balance: $+41.9 billion (latest year, Nov.
2009)
Budget: $227.5 billion-revenues; $216.7 billion-expendi-
tures (2008 est.)
Budget balance: -4.5% of GDP (2009)
Public debt: 24.4% of GDP (2008 est.) [cumulative debt of
all government borrowing]
Exchange rates (per USD): 1,277.0 (May 2009); 1,026
(May 2008)
Economic aid-donor: $699.06 million (2007) [ODA]
Debt-external: $381.1 billion (31 Dec. 2008 est.)
91 Stock of direct foreign investment:
$124.2 billion-at home (31 Dec 2008 est.); $74.6 billion-
abroad (30 June 2008)
Market value of publicly traded shares: $494.6 billion
(31 Dec. 2008)
Distribution of family income-Gini index: 31.3 (2006)
Unemployment rate: 3.5% (Nov. 2009)
Labour force: 24.35 million (2008 est.)
69th (world rank, 2008)
Oil Production: 11th (world rank, 2008)
Oil Consumption: 68th (world rank, 2008)
Natural Gas Production: 25th (world rank, 2008)
Natural Gas Consumption: Military
2.7% of GDP; 58th world rank (2006)
Military Expenditures: Markets
KOSPI index: 1,705 (6 Jan. 2010)
% change on 31 Dec. 2008: +23.9 (local currency); +22.2 ($
terms)
Trade Trade balance: $+41.0 (latest year, Dec. 2009)
Trade to GDP ratio: 85.7 (2005-2007)
Exports: $433.5 billion f.o.b. (2008 est.)
Top export partners: China (22.4%); U.S. (10.9%); Japan
(6.6%); Hong Kong (4.6%) (2008)
Imports: $427.4 billion f.o.b. (2008 est.)
Top import partners: China (17.7%); Japan (14%); U.S.
(8.9%); Saudi Arabia (7.8%); UAE (4.4%); Australia (4.1%)
(2008)
**
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 ;PTL[V,UK9HTWHU[4LYJHU[PSPZT
By Robert Atkinson, President, Information Technology and Innovation Foundation
The global downturn has sharpened the debate over
whether the current structure of globalization is sustain-
able. But the debate over globalization was there before
and will be here after the crisis, unless we take steps
now to create a new kind of globalization that shifts na-
tions’ core economic strategies away from mercantil-
ist, export-led strategies to innovation-based, domestic
growth strategies. This is particularly important because
with the ICT revolution, nations’ economic prosperity is
increasingly based on how well they use ICT, not just
how well they produce it.
ICT is in fact driving growth in most G-20 nations
today. Looking just at the economic impact of the
commercial Internet, ITIF has estimated that the global
** economy is $1.5 trillion larger than it would be otherwise
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and by 2020 will add roughly $3.8 trillion annually to the
global economy—more than the total GDP of Germany.
The economic benefits of IT are even larger (including
not just the Internet but the use of computers and other
ICT). ITIF has estimated that because of the impact of
the IT revolution, the U.S. economy is approximately $2
trillion larger in terms of annual GDP than it would be
otherwise.
Why has ICT had such far-reaching and profound
effects? The short answer is because ICT is what
economists call a “general purpose technology.” As
ICT (hardware, software and telecommunications) has
gotten cheaper, better and easier to use, it has become
pervasive in its use and its impacts, going far beyond
the Internet and personal computers. ICT is embed-
 ded in a vast array of prod-
ucts, and not just technol-
ogy products. Indeed, in
2006, 70 percent of mi-
croprocessors did not go
into computers but into
cars, planes, HDTVs, etc.,
enabling their digital func-
tionality and connectivity.
Connecting these IT tools
is a robust and growing
wireless and wireline tele-
communications network.
The emergence of this
power digital economic en-
gine means that it is now
possible to significantly
raise productivity and
growth in a whole host of
sectors that were long con-
sidered “stagnant,” many
of which like financial ser-
vices, wholesale and retail
trade, hospitality services,
are not mostly traded inter-
nationally. Unfortunately,
many nations today are
overlooking these signifi-
cant opportunities for ICT-
enabled growth, instead
preferring to focus on
growing their economies
by increasing their exports
and reducing their imports,
particularly in the limited
number of high tech indus-
tries. These nations op-
erationalize this export-led
strategy by a wide array of
means, many of them with negative-sum, beggar-thy-
neighbor effects. These tactics include tariff and non-
tariff barriers to imports, subsidies to attract investment
and promote exports, forced technology transfer and
production offsets, theft of intellectual property, and
tax policies, including border-adjustable value-added
taxes, that subsidize exports. And many nations, es-
pecially China, turbo-charge these tactics by rampant
and widespread currency manipulation designed to give
their nation’s products and services a subsidy in the
global marketplace.
At the heart of these negative-sum policies is a mis-
guided economic philosophy that many nations have
mistakenly bought into: a mercantilism that sees ex-
ports in general, and high-value added exports in par-
ticular, as the Holy Grail to success. A generation ago
many nations thought that import substitution was the
Holy Grail. But as that was shown to be a failure, most
switched to export-led growth strategies, through re-
pressed domestic consumption, low labor costs, and
policies to favor exports and limit imports.
There are two major problems with this approach.
First, even if this strategy might have worked for some
smaller nations like Taiwan and South Korea in the past,
it simply cannot work today. Neither markets in the
United States or Europe—or even both combined—are
large enough if nations like Brazil, China, India, Russia,
and Japan continue to promote exports while limiting
imports as their primary path to prosperity.
But there is a more fundamental problem with this
pervasive mercantilism. It is just bad economic policy
for most of the nations pursuing it and certainly for the
global economy as a whole. While it might lead to high-
er wealth in a few relatively small export-based indus-
tries, it does nothing to raise productivity in the rest of
the economy. For example, while the Indian IT sector
has created new opportunities for India, it accounts for
only around three percent of national value-added. Pro-
ductivity in India is just eight percent of U.S. rates, while
Chinese productivity is but 14 percent. The productivity
gap is better but still problematic in more developed na-
tions. Despite some extremely productive and innova-
tive multinational export-based firms, overall Japanese
productivity is just 70 percent of U.S. rates and South
Korea just 50 percent. Attract all the multinational chip
factories or software support centers they want, without
higher productivity levels across the board in all sectors,
it will be extremely difficult for these nations to signifi-
cantly raise their standards of living.
These anemic levels of productivity in non-traded
sectors do not occur by happenstance. They are a
result in part of these nations focusing on mercantilist
practices for their traded sectors. These policies win the
favor of powerful constituents, including domestic pro-
ducers seeking protection from competition, including
foreign competitors (as small retailers have done in India
to limit Wal-Mart from selling to consumers); businesses
and consumers who don’t want to pay for products
with high levels of intellectual content (e.g., software,
music, movies and other content, and pharmaceutical
products); workers and their unions seeking policies
to protect their jobs from competition and automation;
and government bureaucrats whose top-down control
is challenged. In contrast, mercantilism only risks alien-
ating some WTO officials, who normally turn a blind eye
to such practices.
As a result, over the last several decades the global
economic system has become systematically distorted,
with an increasing number of nations favoring beggar- **
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 thy-neighbor policies to attract and grow high wage in-
dustries. These policies lower, not increase global out-
put. When a nation engages in mercantilist policies it is
by definition distorting the location of economic activities
compared to where it should locate. For example, if
China forces Boeing to produce aviation parts in China
as a requirement for letting Boeing sell jets in China, the
odds are that this lowers global innovation and produc-
tivity, because absent this threat Boeing would produce
parts in other factories with higher productivity. Like-
wise, when nations turn a blind eye to theft of intellectual
property, they reduce revenues for the producers of that
IP, in turn reducing their ability to invest in innovation or
higher productivity. And when nations keep their cur-
rency artificially low they contribute to production shift-
ing from more productive and innovative plants to less
productive and innovative ones.
If export-led mercantilism is not the answer, what
is? The answer is an economic policy grounded in what
is increasingly known as “innovation economics.” Inno-
vation economics is based on the view that the path
to higher incomes is raising domestic productivity by all
firms in all sectors. It is also based on the view that it is
not the amount of capital (financial or human) that na-
tions have that is most important, but how that capital is
**
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used. And it is based on the view that micro-economic
factors (e.g., product and labor market competition,
technology policies, etc.) are more important to growth
than macro-economic ones.
Under an innovation economics doctrine, the central
task of global economic policy should be to encourage
all nations to make raising domestic productivity a key
priority. In particular, policies should seek to spur com-
petition and the use of the best production tools–often
by increasing the use of ICT to raise the productivity of
all sectors. For example, Indian retail banking is just nine
percent as productive as U.S. levels and its retail goods
sector productivity is just six percent. If India could raise
productivity in these two sectors to just 30 percent of
U.S. levels, it would raise its standard of living by over
10 percent.
Doing this, however, means working to develop a
global consensus that domestic productivity growth
should be the key focus on economic policy in every
nation. This can start by the nations who engage less
in mercantilism (particularly the United States, Canada,
and Europe) agreeing to cooperate to fight it. In particu-
lar, it is time for Europe and the United States to recog-
nize that just as fighting communism was in our collec-
tive interest after WWII, today fighting mercantilism is in
our collective interest in the 21st century. Joining the
fight should be global bodies like the WTO, international
development organizations like the World Bank and the
IMF, and national or regional development organizations
like the Agency for International Development, the Over-
seas Private Investment Corporation, and the European
Bank for Reconstruction and Development. These or-
ganizations need to commit to not only stop promot-
ing export-led growth as a key solution to development,
they also need to tie their assistance to steps taken by
developing nations to move away from negative-sum
mercantilist policies, especially currency manipulation,
thereby rewarding countries whose policies are focused
on spurring domestic productivity, not on protecting the
status quo.
Globalization is a wonderful vision and can be an
even more wonderful reality, but only if nations abandon
negative-sum mercantilist policies and embrace innova-
tion economics policies focused on raising productivity
for all sectors, and making sure that all individuals can
benefit from this growth. If that happens, developed
and developing nations will benefit greatly.
**
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 .SVIHS4HJYVLJVUVTPJ0TIHSHUJLZ!
.3LHKLYZ4\Z[)HJR<W
;OLPY9OL[VYPJ^P[O+LLKZ
By The Brookings Institution
The financial crisis has taught us a painful lesson
that global macroeconomic imbalances can wreak enor-
mous damage on the world economy. Indeed, the cen-
terpiece of last year’s G-20 Summit in Pittsburgh was
agreement on a framework for balanced and sustainable
growth to forestall a resurgence of imbalances as the
economic recovery gets underway. At the recent IMF-
World Bank annual meetings, G-20 leaders gave the
IMF a mandate to manage this framework by providing
hard-nosed evaluations of their countries’ economies.
Experience suggests that grand promises to imple-
ment policies that are in the collective global interest
can’t be taken seriously without an effective enforce-
ment mechanism. After all, we have seen how quickly
these same leaders’ firm pledges to forswear trade pro-
tectionism bit the dust. The IMF has no real levers when
it comes to the leading G-20 economies, especially
since they are the major shareholders in the institution.
Moral suasion and name-to-shame approaches don’t
work well as the large economies tend to simply brush
off external criticism of their policies.
There is a simple approach that has real conse-
quences, would be straightforward to implement, and
allows G-20 countries to make enforceable policy com-
mitments. It involves Special Drawing Rights, essentially
an artificial currency created at the IMF and distributed
to countries in rough proportion to their economic size.
The total stock of SDRs is now close to $300 billion, a
sizable chunk of money.
The scheme would work as follows. The G-20, in
consultation with the IMF, develops a simple and trans-
parent set of rules for governments on policies that
could contribute to global imbalances—for instance,
that government budget deficits and current account
balances (deficits or surpluses) should be kept below
three percent of national GDP. Each country posts a
commitment bond amounting to a minimum of 25 per-
cent of its SDR holdings to back up its commitments to
those objectives.
Since it is not easy, even with the best of poli-
cies, to turn around the factors underlying imbal-
ances within a short period, commitments to policy
objectives would be made over a five year horizon.
Intermediate targets could be set over a three year
horizon. Failure to meet the targets would mean a
forfeiture of the bond (or a part of the bond for miss-
ing interim targets). The actual cost would not be
large. China, for instance, now has an allocation of
**
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seven billion SDRs and 25 percent of that would
amount to less than $3 billion. Still, the symbolic ef-
fect of being levied an SDR penalty for running bad
economic policies would be huge.
By posting larger shares of their SDR holdings, coun-
tries could signal stronger commitments to their policy
pledges to the international community. This would be a
perfect setup for the U.S. to lead by example in bolster-
ing the framework it initiated—by posting a large bond
as a commitment to sharply reduce its budget deficit.
Given the limited and uncertain tenure of some govern-
ments, such a commitment bond would also be a good
way of binding future governments to sound policies.
This approach would shift the discussion from con-
tentious arguments about current policies to a focus on
outcomes. For instance, China has consistently main-
tained that its current account surplus reflects structural
problems in its economy and has nothing to do with its
exchange rate policy. Who could quibble with methods
so long as China commits to reducing its current ac-
count surplus and succeeds in putting its economy on
a trajectory to get it below three percent of GDP in the
next five years (perhaps with an interim target of five per-
cent of GDP in the next 2-3 years)?
What happens to SDRs that get docked if countries
don’t hit their targets? These SDRs would be distrib-
uted among low income countries. To get incentives
right, only those low-income countries that meet mini-
mum standards in terms of their macro policies would
be eligible for this redistribution. This way, the IMF could
finally offer carrots to poor countries for good policies
rather than just sticks for bad policies. Any SDR redis-
tributions to small poor economies resulting from this
scheme would be morally justified—instability caused by
bad policies in the larger and richer economies tends to
hurt these vulnerable and innocent bystanders dispro-
portionately.
The G-20 commitment to tackling global macroeco-
nomic imbalances is laudable. G-20 leaders must now
be willing to back up their rhetoric with deeds and be
ready to pay the price for breaking their commitments.
**
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**
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 0UZ[P[\[PVUHS+L]LSVWTLU[!
/V^[OL.4H`/LSW[OL>VYSK»Z7VVY
By The Brookings Institution
Faced with a sputtering global economic recovery,
an incomplete international financial regulatory sys-
tem, and governance gaps in multilateral institutions,
the Group of Twenty (G-20) looks set to have a busy
2010. Given this crowded agenda, the decision of Ko-
rean President Lee Myung-bak, the current chair of the
G-20, to include development as an “integral part” of
the G-20’s mission is particularly laudable.
In asserting ownership of international develop-
ment policy, the G-20 is usurping the G-8, who tradi-
tionally spearheaded this agenda. How might the G-20
tackle development differently from its predecessor?
Before trying to answer this question, it’s useful to
go back five years to the 2005 Gleneagles Summit, to
better understand the G-8’s approach to development.
There, amid much pomp and self-congratulation, the
G-8 leaders agreed to a bold new compact: a doubling
of global aid by 2010, with half of the increase in funds
going to Africa, and the cancelation of debts owed by
the most heavily-indebted developing countries. “We
do not simply by this communiqué make poverty his-
tory,” conceded then British Prime Minister Tony Blair,
the host of the summit and the major driver behind its
focus on African development. “But we do show how
it can be done. And we do signify the political will to
do it.”
In many ways, the Gleneagles Summit was the
apotheosis of the G-8’s approach to global develop-
ment, one moored to the principles of charity and for-
giveness. Both the style and substance of the event re-
flected a perception of developing countries (and Africa
in particular) that has struggled to move beyond the
strange blend of paternalism, pathos, and guilt that has
characterized the post-Cold War period. This resulted
in the global development agenda we have today: one
**
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where political incentives prioritize the announcement
of commitments at press conferences above concern
for what is ultimately achieved for the world’s poor.
There was also too much stress on aid and not enough
concern for creating an enabling global economic envi-
ronment with rules supportive of development.
Five years on, the Gleneagles Summit and the
hoopla surrounding it appear both antiquated and na-
ïve. Despite significant increases in aid volumes, the
G-8 nations remain short of their targets, but at a cer-
tain level this failure is beside the point. Debt relief and
higher aid flows have been superseded by new devel-
opment priorities such as fragile states and protect-
ing the vulnerable from a changing climate. Moreover,
there is growing recognition that our understanding of
what causes growth, and how we might “make poverty
history,” remains incomplete. All the while, the develop-
ment landscape has shifted immeasurably, with some
emerging countries becoming key drivers of the global
economy.
This, then, is the complex drama into which the
G-20 has now stepped. It is unreasonable to think that
its members will instantaneously make development a
top priority, or will overcome all of the political difficul-
ties that plagued the G-8. But the G-20 will bring a
fresh perspective to the development agenda, and on
three key issues—how members see their roles in rela-
tion to the developing world, what they gain by acting
as a group, and how they hold themselves account-
able—we can expect to see changes which will pay
dividends for the world’s poor.
From Patrons to Diverse Responsibilities
The G-8’s relationship with the developing world
has evolved through a long and complicated history
into its current form: that of enlightened guardians be-
stowing favor on those less fortunate. Though in re-
cent years, there have been some efforts to recast this
relationship; the underlying power balance has barely
evolved.
The G-20’s position vis-à-vis developing countries
is less easily characterized, not least because of its
more heterogeneous composition. Given the mix of ad-
vanced, newly industrialized, emerging and developing
countries present at G-20 summits, each member will
relate to poor countries and the process of develop-
ment in its own way. Moreover, members will likely ex-
hibit multiple personalities when tackling development
issues. Australia, for example, attends as an aid donor,
a concerned neighbor of failing states, and a keen rival
in commodity markets dominated by developing coun-
tries; India at once participates as a champion of Glob-
al South solidarity, an economy that promises to be
one of the fastest growing in the world, and the home
of the largest population of the world’s poor. Certain
members may be asked to represent constituencies
beyond their own borders: in a recent speech, South
African Minister Trevor Manuel noted that at the G-20
his country has been called upon to speak variously
for itself, for Africa, and for low-income countries in
general.
Such complexity is likely to make any G-20 de-
bate over development less predictable. Yet the fact
that G-20 membership is explicitly based on systemic
significance—implying a responsibility to the develop-
ing world based on facts on the ground, rather than a
sense of noblesse oblige—could bring a hardheaded-
ness to development debates that was often lacking
at the G-8.
From Collection Plate to
Collective Action
The purpose of G-8 discussions on development
was generally to convince each member to contribute
a little more than they otherwise would, in the style of a
charitable fundraiser. Developing country guests were
occasionally invited along to tug on the heartstrings of
G-8 leaders, who in turn would get carried away in bid-
ding wars, mimicking their corporate heroes. As such,
G-8 meetings on development weren’t really multilat-
eral exercises, but rather an effort to get each member
to increase its bilateral assistance.
For the G-20, conversely, the motivation for gather-
ing is not simply to encourage each to be more gener-
ous, but to tackle challenges that necessitate coop-
eration and coordination. Approaching development
through a collective action lens will likely alter the focus
of multilateral assistance.
Over the past 18 months, we have seen that global
growth and financial stability are global public goods,
as without them the economic prospects of any indi-
vidual country falter, as are a clean atmosphere and a
fair and open trading regime. The G-20’s approach to
development can be expected to place greater empha-
sis on securing these external conditions for growth,
which will indirectly support the economies of the de-
veloping world and pull individuals out of poverty.
From a Reliance on Conscience to
Independent Monitoring
The G-8 has historically done without official ac-
countability mechanisms to uphold the decisions its
members reach at meetings. A little peer pressure or
the burden of a guilty conscience were seen as suf-
ficient levers, befitting the G-8’s small size and clubby
style. The shortcomings of this approach were made
evident last year as Italy’s flagrant failure to fulfill its Gle-
neagles targets were brushed over by its co-members.
By contrast, the G-20 has embraced the principle
of independent monitoring from the outset, acknowl-
edging the need for an increased role for multilateral
institutions to oversee the implementation of its ac-
cords. This is not simply to further the spirit of multi-
lateralism, but a recognition that large, heterogeneous
clubs require referees to enable collective action. Such
a change will potentially deliver much needed improve-
ments in the transparency and accountability of de-
velopment policies, two challenges the G-8 continually
struggled to address.
It is perhaps too soon to assess how the G-20 will
address development; after all, the body in its current
form is only a little more than a year old, and its priori-
ties and internal machinations have yet to fully emerge.
But if anticipated correctly, this new approach to de-
velopment would appear to offer plenty of promise.
Ultimately, the extent to which the G-20 succeeds in
promoting development compared to its erstwhile pre-
decessor will largely depend on the political will of its
members’ leaders; it is up to them to rise to this chal-
lenge.
**
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 7YV[LJ[PUN/HP[P»Z*OPSKYLU!
.VVK0U[LU[PVUZVY*OPSK;YHMÄJRPUN&
By The Brookings Institution
The January 12th earthquake that shook Haiti
was a huge blow to the country’s delicate social and
political balance. Like other large-scale natural disas-
ters, the aftermath saw massive aid efforts mobilized
from large and small nations, nonprofits and religious
groups, all intending to help the ravished country. De-
spite the positive work many of these groups are doing,
the recent media focus has been on the children.
A group, which was associated with two Idaho-
based Baptist churches, was caught with 33 Haitian
children, attempting to take them to the Dominican
Republic on January 29th without proper paperwork.
Questions were raised about the children’s status and
whether they were truly orphans or just separated from
their families. As of today, the Haitian judge overseeing
the case has released eight of the 10 Americans; how-
ever, the group’s leader and one other member are still
being held for questioning. This case highlights the im-
portant issue of child protection in humanitarian crisis.
Where is the line between good intentions and human
trafficking?
Human trafficking is at once a horrific crime and
a global phenomenon. Virtually every country in the
world sends or receives human beings for exploitative
purposes through global trafficking networks. The Unit-
ed Nations estimates that at any given moment 2.5 mil-
lion people are in forced labor, including sexual exploi-
tation, as a result of trafficking and that these people
come from 127 countries and reside in 137 countries.
The majority of people trafficked are children and youth
with 1.2 million children under the age of 18 estimated
to be trafficked each year. The United Nations defines
human trafficking as the use of force, fraud, or other
coercive methods, including abusing a position of vul-
nerability, to recruit, transfer or receive people for ex-
ploitative purposes.
Tragically, calamitous events such as Haiti’s earth-
quake are breeding grounds for child traffickers, seeking
to take advantage of chaos and weakened government
law enforcement. Accusations of child kidnapping and
trafficking were widespread following the 2004 tsunami
in South Asia, where Indonesian officials took action
to protect children from trafficking by posting guards
around camps sheltering displaced people.
It is often difficult to quickly discern the difference
between well-intentioned but completely uniformed
voluntary groups and child traffickers. In 2007, mem-
bers of the French group, Zoe’s Ark, were accused
of child abduction after attempting to fly 103 children
out of Chad. At the time, UN officials said it was not
clear that the children were actually orphans or that
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they were from the war-ravaged Darfur region of Su-
dan, as the group claimed; but rather they were Chad-
ian children with living parents and relatives. The or-
ganization appears to be made up of well-intentioned
volunteers wanting to assist needy children. But they
were not professionally trained or experienced work-
ers; nor did they have familiarity with the issues and
an understanding of the best practices associated with
supporting children’s needs in the midst of conflict and
disasters in developing countries.
In these difficult contexts, good intentions are not
enough. These incidents overshadow the positive work
many volunteers and aid groups do to help children
in disaster situations, and highlight the importance of
professional humanitarian workers who are especially
trained to assess and respond to children’s needs with-
out doing harm. Most importantly, these good inten-
tions can cause serious emotional and psychological
damage to the innocent children that just survived a
major crisis by removing them from their families and
communities. Research and past experience in helping
children in humanitarian crises has shown that by far
the best way to assist the majority of children, even
orphans, is to ensure that they are living with extended
relatives or caring adults in their own communities. In
such humanitarian crises, where children’s well-being
is at stake, aid agencies and volunteer groups are best
advised by the principles set forth in the Inter-agency
Guiding Principles on Unaccompanied and Separated
Children, which was created in 2004 by a group of
international United Nations and civil society humani-
tarian agencies. These guidelines address situations
in which children are separated from their families,
whether orphaned or accidentally lost, in the wake of
crises and disaster. They articulate clear steps, includ-
ing supporting family unity, to ensure that each child’s
best interests are followed.
Haiti’s recovery will take years. The desire to help
children left without proper care is both noble and nec-
essary; however, the urge to volunteer is best chan-
neled through raising funds to support professional
organizations with expertise in disaster response and
child protection, such as the United Nations Children’s
Fund, the International Rescue Committee, or Save the
Children. Otherwise, well-intentioned volunteers can
risk doing more harm than good.
**
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 ;OL:[H[\Z9LWVY[!
6IHTHHUK.SVIHS-PUHUJPHS:[HIPSP[`
By The Brookings Institution
Leadership in Restoring Global Financial
Stability:
President Obama has shown leadership domesti-
cally and globally by undertaking decisive actions to
pull the U.S. and global economies back from the edge
of the abyss, challenges described by Eswar in a memo
to the president-elect last January. But a rocky road
lies ahead before we see the recovery entrenched and
the global financial system back on the path to stability.
Domestically, the administration deserves credit,
given the nature and size of the economic crisis, for
taking decisive and massive action to prevent the U.S.
economy from sliding into a deeper recession and in-
stead move towards a recovery. Some mistakes were
certainly made in getting the financial system back on
its feet, but the combination of direct intervention in
the financial sector, low interest rates, monetary “eas-
ing” and strong fiscal stimulus was crucial in avoiding
a more serious crisis. While temporary nationalization
of the weakest financial institutions was an alternative
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that could have sent a stronger message that the cost
of huge mistakes by private actors would have to be
more fully borne by shareholders and managers, this
radical approach probably would have faced technical
obstacles and resistance from Congress.
Internationally, the global nature of the crisis ne-
cessitated a multilateral response and a more robust
international policy architecture. This was where the
Obama administration made major strides. It took the
initiative to make the G-20 into a new, enlarged “steer-
ing group” for the global economy, recognizing that the
G-8 no longer reflected the nature and structure of the
world economy. This was a bold and significant move
to bring a major group of emerging market countries to
the “head table” of global collective action. This recon-
figuration while not just supported by the U.S. could
not have become a reality without a strong U.S. push.
President Obama and his Sherpa played key roles
in making the London and Pittsburgh G-20 summits
into more than just photo opportunities, laying the
foundation for much more effective global collective imbalances, the Obama administration must lead by
action in a cooperative framework that includes China, example—mainly by policies that encourage a long-
India, Brazil and other key emerging markets. Obama term increase in private savings and by bringing its fis-
championed a substantial strengthening of the IMF’s fi- cal deficit under control, as this is legitimately seen by
nancial capacity, which helped restore confidence in its other countries as a destabilizing factor in international
ability to weather the crisis. Incorporating key emerg- financial markets.
ing markets into an expanded Financial Stability Board The U.S. should find ways to add teeth to the G-20
will also have important implications for global financial proposal for a global framework for sustainable and
regulation. However, the U.S. failed to deliver mean- balanced development, which the G-20 has asked the
ingful and decisive progress on a new global climate IMF to help facilitate. It is also important for the admin-
change framework despite pledging to raise substan- istration to push for bolder governance reforms at the
World Bank and IMF, along with a capital increase for
the World Bank and some other development banks,
at minimal cost to the U.S. taxpayer.
Finally, Obama’s focus on stimulating U.S. job
growth is welcome and necessary. The message
should be loud and clear that a global economy that
does not deliver decent jobs and increases in median
incomes of American citizens and citizens around the
world cannot be considered as successful, even if it
delivers rapid GDP growth. The fruits of growth will
have to be much more equitably distributed than in the
past decade. Ultimately, the huge potential benefits
of global trade and investment flows can only be real-
ized and receive political support if the large majority
of citizens are actual beneficiaries of the globalization
tial funds to help alleviate the climate financing needs process.
of developing countries.
Broadly speaking though, both the domestic and
international actions designed to restore financial sta-
bility and limit the existing damage of an inherited fi-
nancial crisis have been positive and successful.
Still, huge challenges lie ahead. The consequenc-
es of policies undertaken during the crisis have cast a
long shadow on the U.S. economy. Action now seems
stalled on many fronts, creating a dangerous loss of
momentum and progress on reforms to stabilize mac-
ro-economy and the financial system.
Therefore, on the domestic front, the administra-
tion must back up its rhetoric on reigning in budget
deficits with a clear plan. President Obama must be-
gin preparing the U.S. body politic for tough measures
to tackle the massive growing deficit and public debt,
such as a value-added tax on consumption. The pro-
posal to mobilize greater fiscal revenue from the finan-
cial sector could also contribute to an overall improve-
ment in fiscal balance. The threat is real and long term
in nature, the response must be comprehensive and
effective, but it should not, and need not, be formu-
lated in a panic mode.
On the global stage, the U.S. seems to be less
in the forefront of the international reform efforts as
compared to where it was during a very pro-active
period before the London meeting. In tackling global
**
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 ;OLALKPSSV*VTTPZZPVU9LWVY[VU
>VYSK)HUR9LMVYT!
(:[LWWPUN:[VULMVY[OL.:\TTP[ZPU
By The Brookings Institution
In October 2009, the high-level commission led by
former Mexican President Ernesto Zedillo to review re-
form of the World Bank published its report “Repower-
ing the World Bank for the 21st Century.” The Commis-
sion’s efforts coincided with one of the world’s worst
financial and economic crises and came in the wake
of a G-20 call for reform of the international financial
institutions. The Zedillo Commission offered a unique
opportunity to create the foundation for far-reaching
reform of the World Bank as the premier global finan-
cial institution supporting sustainable global develop-
ment and poverty reduction. The Commission’s report
provides many sound recommendations that serve as
an important building block for World Bank reform, but
additional elements will be required for a comprehen-
sive approach.
According to the World Bank’s Web site “[t]he
Commission was created by World Bank Group Presi-
dent Robert B. Zoellick in October 2008 to focus on
the modernization of World Bank Group governance so
the World Bank Group can operate more dynamically,
effectively, efficiently, and legitimately in a transformed
global political economy.” The report accordingly de-
votes most of its analysis and all of its recommen-
dations to issues of governance. It offers no explicit
recommendations on the World Bank’s mandate, op-
erational challenges and modalities and its funding,
although these topics are discussed at the outset in
setting the stage for the analysis of governance reform.
Governance and mandate issues are interconnect-
ed: member countries will only give the World Bank
an ambitious mandate if it is underpinned by strong
governance; and they will only make serious efforts to
strengthen the Bank’s governance if the Bank makes
a clear and significant contribution to address global
challenges on their behalf. Since the Commission fo-
cused only on governance reform, a key element of
World Bank reform remains to be addressed. A “grand
bargain” may need to be implemented in order to turn
the World Bank into a truly legitimate and effective
global institution.
Reform of World Bank Governance
The report rightly identifies governance weakness-
es as having undermined the World Bank’s legitimacy
and effectiveness. Its analysis of the governance weak-
nesses is informative, perceptive and comprehensive
in coverage—considering not only IBRD and IDA, but
also including IFC and MIGA in its ambit. It formulates
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a concise and overall sound set of principles of good
institutional governance and addresses the key gover-
nance issues in a broad sweep of recommendations
while understandably leaving many details of imple-
mentation yet to be addressed. The main recommen-
dations fall under four headings:
1. Reform of representation (chairs, vote, and
voice):
• The proposal to reduce the size of the Board to
20 chairs by consolidation of European seats, creating
elected-only chairs and distributing board membership
more evenly across constituencies is welcome. With
the signing of the Lisbon Treaty, the Europeans should
address their fragmented and excessive representation
in many international bodies, including the World Bank.
Otherwise, they will seriously undermine the Bank’s le-
gitimacy.
• The goal of a 50/50 voting structure for the Bank
between developed and developing countries and
a significant increase in the basic shares and hence
votes is a welcome recommendation. It sets a clear
goal for rebalancing of the ownership of the institution.
• The proposed elimination of the U.S. veto is
also welcome. A key question left unanswered is how
this could be made palatable to the U.S. administration
and Congress.
2. Restructuring governing bodies:
• In principle, the proposal of a nonresident, min-
isterial-level board of executive directors is fine, yet
likely unrealistic in practice: member governments are
not likely to forego a resident-board approach; and if it
were adopted, it is unlikely that ministers would spend
the time required to serve in this capacity. Other op-
tions should be explored: reformed representation, a
clearer strategic role for the Board, giving the Board its
own leadership, and a stronger mandate for the Bank
(see below) would help make a more effective and at-
tractive institution.
• The proposed delegation of approval of individ-
ual loans, which is currently reserved for the board to
the management, will strengthen the Board’s focus on
strategy and policy formulation process. This will also
allow a reduction in the size of the board’s costly staff
and make it easier to attract senior-level board repre-
sentation.
• The proposal to have the Board chaired by a gov-
ernment representative, rather than by the President is
also appropriate, but the traditional rules of selecting
the Board’s leadership (the “Dean”) purely by seniority
should also be abandoned. Instead, a process of elec-
tion by the members should be introduced.
3. Changing leadership selection: It is appropri-
ate to eliminate the U.S. prerogative in the World Bank,
and the European prerogative in the IMF. Merit-based
leadership selection, as recommended by the report, is
more appropriate. While this principle appears to have
been adopted at the G-20 summit before the Com-
mission issued its recommendation, it remains to be
implemented in practice.
4. Increasing the World Bank’s funding base:
The report correctly identifies the need to increase
the World Bank Group’s resource base, but says little
about which resources should be increased, why and
by how much. The justification for a capital increase
needs to be articulated more clearly, the case for an
early and ambitious replenishment of IDA needs to be
made explicitly, and the potential role for the Bank in
acting as a channel for global public goods funding
(especially climate change funding) needs to be clearly
laid out.
The World Bank’s Mandate
It is encouraging that the Commission portrays the
World Bank as an institution that has a continuing and
enhanced role to play. The proposals for governance
reform are intended to strengthen its legitimacy and
capacity. The report also identifies important challeng-
es in the current and future global environment, but
presumably because of its limited terms of reference, it
does not lay out a clear vision of the mandate and role
of the Bank in the face of these challenges, nor does
it closely link the governance reform proposals to the
changing challenges and mandate of the Bank.
Three challenges stand out in particular:
• Supporting growth and poverty reduction in
middle-income countries: The report identifies the
challenge of the Bank to stay engaged with middle-
income countries (MICs), but does not propose a clear
rationale for this engagement, nor does it state what
specific role the Bank should play in MICs, what needs
to be done to play this role effectively, and how the
proposed governance reforms would help it doing so.
Enhanced representation of the MICs in the Bank’s
governance would be one way to strengthen their trust
in the institution and ensuring that the Bank adjusts its
operational modalities in a way that is responsive to
MICs’ needs.
• Supporting the provision of global public
goods:
The report identifies global public goods (GPGs),
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 such as environmental protection, response to epi-
demics, protection of global financial stability, etc., as
an important challenge, but does not specify what role
the Bank should play and what reforms are needed
for it to play this role. And again no link is established
with governance reform. MICs in particular have been
resistant to a stronger Bank role in GPG funding. Giv-
ing them greater voice and vote in the Bank would
likely lower their resistance. In terms of funding, it will
be important to explore making the Bank the principal
conduit for GPG funding.
• Supporting the coordination of aid: The re-
port flags the rise of new aid actors and the resulting
fragmentation of the aid architecture, and lays out the
great challenges that donors face in conflict-affected
countries. However, it does not identify what role the
Bank could and should play in helping to make the
aid architecture function better or what specific role it
should play in aid coordination. One option to consider
is for the Bank to play a lead role in coordinating aid in
conflict-affected and fragile states—and indeed, in all
countries where governments cannot or will not play
such a lead role.
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Searching for a “Grand Bargain” in World
Bank Reform
Reform of international institutions requires a care-
ful balancing of multiple and, at times, diverging na-
tional interests. The U.S. has an interest in maintaining
its prerogatives of selecting the World Bank president
and wielding a veto when it deems appropriate. The
Europeans want to maintain their strong presence on
the Bank’s board and protect their prerogative of ap-
pointing the IMF’s Managing Director. The developed
countries as a group have an interest in promoting an
effective response to GPGs and in improving better co-
ordination of aid in conflict-affected and fragile states.
The middle-income countries want greater voice
and vote in an institution that is designed to support
them in their long-term development aspirations and
during times of crisis. The low-income countries, which
critically depend on the World Bank along with other
donors for concessional assistance and crisis support,
want a greater say about the conditions on which fund-
ing is made available to them and about the quality of
technical advice and assistance they receive.
It is clear that governance and mandate issues are
closely related. Proposals for World Bank reform that
do not explicitly consider how to balance these nation-
al interests across these two domains—governance
and mandate—are not only incomplete but also face a
great risk of stalemate and ultimately failure.
By focusing only on governance, the Zedillo Com-
mission was unable to explore how the many differing
national interests could be brought under one hat in
the form of a “grand bargain,” in which different par-
ticipants are willing to compromise on some of their
interests so as to achieve others. Had the Commission
been given a broader remit, it could have explored the
creation of a World Bank that can respond to:
• The interests of developed countries by help-
ing to ensure sustained growth and poverty reduction
in the developing world, by responding to the critical
need to address GPGs, and by providing leadership,
with responsibility and accountability, in aid coordina-
tion in conflict-affected and fragile states; and,
• The interests of developing countries by giv-
ing them a greater role in the Bank’s governance and
hence greater trust in the institution in letting it play a
key role to assure a stable, prosperous, and sustain-
able world economy.
The developed countries would then be more likely
willing to forego some of their traditional prerogatives
in the governance of the institution; and the develop-
ing countries would likely be willing to give the World
Bank a greater mandate in assisting them to respond
to global challenges.
As the G-20 leaders prepare for their 2010 sum-
mits in Canada and Korea, they should demand from
their deputies and Sherpas, and from the World Bank’s
leadership, that they take a broader perspective of the
reform agenda, drawing on what is a sound analysis of
the governance challenges offered by the Zedillo Com-
mission Report, but staking out a much more ambi-
tious and far-reaching set of reform measures for the
World Bank. By combining reforms in the World Bank’s
governance and in its mandate, the leaders can create
a package that responds to the valid interests of all
participants, and to the urgent global developmental
needs and to the challenges of global public goods.
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 )+/LSWZ:[YLUN[OLU:\I:HOHYHU/LHS[OJHYL
;OYV\NO0TWYV]LK3HI7LYMVYTHUJL

IMPROVED COLLECTION AND MANAGEMENT OF Health Initiative provides training and technical assis-
MEDICAL TEST SAMPLES PLAYS A VITAL ROLE tance to local lab personnel. It also expands access
In sub-Saharan Africa health systems face funda- to critical technologies and invests in new technologies
mental limitations in staffing, funding, medical educa- suited for use in lesser-developed environments.
tion, training, and access to vital medical technologies. “The corporate community can help strengthen
Moreover, the region is burdened by a disproportionate healthcare systems in such developing regions as sub-
share of infectious disease. Health pandemics such as Saharan Africa,” said Krista Thompson, Vice President
HIV/AIDS, tuberculosis (TB) and malaria take millions of and General Manager, Global Health, BD. “By work-
lives annually. ing intelligently with various governmental and non-gov-
In recent years, many institutions have been collabo- ernmental institutions, the business world can provide
rating to help fortify healthcare systems in sub-Saharan resources that lead to sustainable, long-term improve-
Africa. Players include national health ministries, gov- ments.”
ernments around the world, the United Nations and its
affiliated entities, and many foundations and other non-
governmental organizations.
But the corporate world is also playing a critical
role. One example is the work of BD (Becton, Dickin-
son and Company) through its Global Health initiative,
which lends support through knowledge transfer, train-
ing, management development, advocacy, funding, and
volunteerism.
Based in New Jersey, BD is a global medical tech-
nology company that develops and sells medical de-
vices and instrument systems worldwide. Emphasizing
sustainability and affordability, the company’s Global
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 On the training and technical assistance front, BD
Global Health has been engaging in many collaborative
efforts specifically aiming to improve sample collection
and transport.
Among other benefits, the proper collection and
management of patient samples improves diagnostic
capability, facilitates the monitoring of HIV/AIDS and
TB patients, and helps to protect healthcare workers,
themselves a scare and precious resource in the region.
One such program is a collaboration for safer blood
collection between BD and PEPFAR (The U.S. Presi-
dent’s Emergency Plan for AIDS Relief).
Safe blood collection is more critical than ever in de-
veloping countries severely impacted by the HIV/AIDS
pandemic. With increased access to HIV treatment, the
need for screening tests has grown. This has greatly
increased the number of times blood must be drawn.
“Safe blood collection is an important component
of the Emergency Plan’s comprehensive approach to
combating HIV/AIDS around the world,” said Ambas-
sador Eric Goosby, the U.S. Global AIDS Coordinator
who oversees PEPFAR. “Our ultimate goal is to build
sustainable systems and empower individuals, commu-
nities, and nations to battle HIV/AIDS.”
Health personnel receive training to improve blood-
drawing procedures and specimen handling. The initia-
tive also helps prevent needlestick injuries through sur-
veillance and post-exposure management.
The three year initiative recently began in Kenya
and will add up to four additional countries. It aims to
train up to 2,000 workers and support up to two million
blood draws within each participating country.
“Health personnel in sub-Saharan Africa face high
risks of contracting HIV/AIDS and other diseases in
work settings,” said Renuka Gadde, Director of Global
Health, BD. “These valuable workers can perform their
jobs more safely through the improvement of blood
drawing and other procedures involving blood and
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sharp devices.”
TB is the most common cause of death among HIV-
positive patients, but diagnosis in people living with HIV/
AIDS can often produce incorrect results. Due to weak
healthcare infrastructure, specimens from patients who
are resistant to treatment frequently do not get referred
for proper diagnosis. Additionally, due to the need for
appropriate training, managing specimen quality and
laboratory processes is difficult.
In response, Uganda’s National TB Reference Labo-
ratory developed a referral system whereby laboratory
and postal workers learn safe specimen packaging,
transportation and delivery. In conjunction with this ini-
tiative, BD and PEPFAR jointly introduced global posi-
tioning system (GPS) and geographical information sys-
tem (GIS) technology to map TB microscopy sites and
monitor laboratory quality improvements.
Now encompassing more than 500 collection sites,
the program has facilitated proper delivery of more than
900 specimens to date.
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Through the new specimen referral program, Ugan-
dan health officials can better manage specimens, data
and laboratory quality. The referral system allows TB
samples to be tested with a level of sophistication ex-
ceeding that available in more modest lab sites in outly-
ing areas.
“Hundreds of our labs and sample collection cen-
ters are located in remote areas and lack sophisticated
equipment,” said Moses Joloba, who leads the National
TB Reference Laboratory in Uganda. “Our international
collaborators have helped us institute measures that will
lead to long-term efficiencies in Uganda’s healthcare in-
frastructure.”
BD is also improving sample management by
training lab personnel. Under a program conducted
in collaboration with PEPFAR, a total of 96 Ugandan
healthcare workers have received instruction on quality
management in laboratory settings. Over the training
period, lab worker test scores increased from an aver-
age of 35 percent prior to training to 88 percent.
Also, under BD’s Good Laboratory Practices train-
ing program, more than 5,000 participants in 59 coun-
tries have received training in hundreds of workshops.
The proper collection and delivery of medical sam-
ples may seem basic and mundane. But as the BD
Global Health initiative demonstrates, even improve-
ments in such fundamental practices as these can play
a vital role in building a more promising healthcare out-
look for the region.
While the challenges remain formidable, sub-Saha-
ran healthcare systems have been improving through
public-private collaboration. Ample opportunities exist
for greater corporate involvement in these vital efforts.
The entire world shares a stake in their success.
**
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 9LHJOPUN[OL>VYSK»Z4VZ[=\SULYHISL
The Lilly MDR-TB Partnership is a public-private ini-
tiative that encompasses global health and relief orga-
nizations, academic institutions and private companies,
and is led by Eli Lilly and Company. Its mission is to
address the expanding crisis of multi-drug resistant tu-
berculosis (MDR-TB). Created in 2003, the Partnership
mobilizes more than 20 global healthcare partners on
five continents.
Lilly is contributing US$ 120 million in cash, medi-
cines, advocacy tools and technology to focus global
resources on prevention, diagnosis and treatment of pa-
tients with MDR-TB; and an additional US$ 15 million
to the Lilly TB Drug Discovery Initiative to accelerate the
discovery of new drugs to treat TB.
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Empowering Local Communities
The Partnership has implemented community-level
programmes to raise awareness about MDR-TB, in-
crease access to treatment, ensure correct comple-
tion of treatment and empower patients by eliminating
the stigma of the disease. The Partnership also trains
healthcare workers to recognize, treat, monitor and pre-
vent the spread of MDR-TB.
A global Approach for Global Results
Because global change requires a global perspec-
tive, the Partnership works with policymakers around
the world to raise awareness about the toll that TB takes
on the global population and encourages new initiatives
that curb the spread of MDR-TB.

Sustainable Access to Medicines
To increase the supply of high-quality, affordable
medicines, Lilly has partnered with manufacturers in
countries hardest hit by MDR-TB, providing both knowl-
edge and financial assistance to create sustainable, lo-
cal sources for MDR-TB drugs.
New Drug Discovery Initiative
The Lilly TB Drug Discovery Initiative is a public-pri-
vate partnership that will draw on the global resources
of its partners, including access to chemical libraries
of compounds, to pioneer research on much-needed
faster-acting medicines to treat MDR-TB.
Seven-year old Manisha, diagnosed
with TB in 2008, doing her second
grade homework. After nearly sev-
en months of treatment through a
community-based program, she was
cured of TB in January 2009. The Lilly
MDR-TB Partnership strives to im-
prove care for the world’s most vul-
nerable people, like little Manisha.
Photo: Subhash Sharma
Helping Those in Need
The initiatives of the Lilly MDR-TB Partnership all
have one thing in common: improved care for some of
the world’s most vulnerable people, delivered in a sus-
tainable manner that builds capacity within the commu-
nities where it is needed most.
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 ¸*¹¶;OL)\ZPULZZ4PYYVYVM[OL.
As the G-20 Summit has been
gaining in importance as the premier
forum for international economic co-
operation, Chambers of Commerce
from across the globe have joined
their forces in late 2009 and an-
nounced the creation of the “C20”
group – the business counterpart of
the G-20 conformed by the Cham-
bers of Commerce of the countries
belonging to the official Group of 20.
The ambition of this group is to
represent the views of enterprises –
particularly small and medium-sized
ones – from the G-20 countries and
make an impact on economic and
financial policies discussed at G-20
level.
The C20 group is not a formal
institution, nor focuses itself as a
Secretariat for organising multiple
meetings. Instead, its main goal is
to support G-20 leaders in elaborat-
ing solutions to restore economic
stability and sustainable growth
globally through the development of
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common positions, the exchange of position paper for the Seoul Summit
opinions among the C20 Chambers, in November this year.
and common lobby initiatives.
Alessandro Barberis, President
of EUROCHAMBRES said: “As the
G-20 grows in importance in ad-
dressing the world’s economic chal-
lenges, it is crucial that they can rely
on a ‘mirror’ business group that will
provide the real economy’s perspec-
tive. We wish to establish a regular
exchange of information and con-
sultation mechanisms between the
G-20 and the C20, which should
lead to solutions beneficial to busi-
nesses worldwide.”
As agreed in the working plan
for 2010, the Canadian Chamber
of Commerce has led the consulta-
tion process within the C20 group
so as to come up with a joint po-
sition paper for the G-20 Summit in
Toronto on 26-27 June 2010. This
work will continue in the future and
the Korean Chamber of Commerce
and Industry will be preparing a draft
 Sponsored Article

C20 members
1. Argentina – The Argentinean Chamber of Commerce
2. Australia – The Australian Chamber of Commerce and Industry
3. Brazil – The National Confederation of Industry
4. Canada – The Canadian Chamber of Commerce
5. China – China Chamber of International Commerce – China Council for the Promotion of International Trade
6. France – The Assembly of French Chambers of Commerce and Industry
7. Germany – The Association of German Chambers of Industry and Commerce
8. India – the Federation of Indian Chambers of Commerce and Industry
9. Indonesia – The Indonesian Chamber of Commerce and Industry
10. Italy – The Union of Italian Chambers of Commerce, Industry, Crafts and Agriculture
11. Japan – The Japan Chamber of Commerce and Industry
12. Mexico – Confederation of National Chambers of Commerce, Services and Tourism of Mexico
13. Russia – Chamber of Commerce and Industry of the Russian Federation
14. Saudi Arabia – The Council of Saudi Chambers
15. South Africa – Business Unity South Africa
16. South Korea – The Korea Chamber of Commerce & Industry
17. Turkey – The Union of Chambers and Commodity Exchanges of Turkey
18. United Kingdom – The British Chambers of Commerce
19. United States – The US Chamber of Commerce
20. European Union – EUROCHAMBRES

OBSERVERS:
The Netherlands – The Netherlands Chamber of Commerce
Spain – The High Council of Chambers of Commerce, Industry and Navigation of Spain

**
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 ;OL9VSLVM9LNPVUHS6YNHUPaH[PVUZPU*VTIH[PUN
>4+;LYYVYPZT
Johan Bergenäs – The James Martin Center for Nonproliferation Studies

The acquisition and use of a chemical, biological or

nuclear weapon by a terrorist organization would not
only constitute a horrific episode of human death and
suffering, it would also have significant economic con-
sequences, threaten worldwide peace and security, and
shake the global nonproliferation regime at its core. Ter-
rorists are known to seek all these types of weapons of
mass destruction (WMD) and as such the threat posed
by WMD terrorism is inarguably one of the greatest men-
aces facing the global community in the 21st century.
The G-8 countries have for years warned of the
nexus of international terrorism and the proliferation
of WMD. At the 2002 summit in Kananaskis, Canada,
the G-8 established the Global Partnership Against the
Spread of Weapons and Materials of Mass Destruction
(GP). Since then the GP’s efforts have focused mainly
on nuclear security in Russia, Ukraine, and other former
Soviet Union states. Today, however, the Global Partner-
ship seeks to expand its activities geographically and ex-
tend them beyond the 2012 timeframe. Implementation
of United Nations Security Council Resolution 1540—
the most comprehensive international measure in place
to provide states with a framework to combat the threat
posed by the proliferation of WMD to terrorist organiza-
tions—is one area where the GP may seek to engage.
In particular, the Partnership should consider supporting
regional organizations in facilitating implementation of
Resolution 1540 among their member states.
UNSCR 1540 was passed unanimously in 2004 and
requires all states to adopt and enforce domestic laws,
controls and physical protection measures for WMD, to overlooked issues and, perhaps most importantly, of
their delivery vehicles, and related materials. Implement- being able to mobilize resources to meet global chal-
ing the resolution is a work in progress that will take lenges.”
several years, if not decades. It is also time-consuming, In fact, the European Union (EU), a Partnership
expensive, and difficult. As a result, many states, es- member, has already taken action vis-à-vis UNSCR
pecially those in the developing world, are in need of 1540 implementation. As noted in last year’s GP Work-
implementation assistance. In these particular states, ing Group annual report, the EU committed resources
implementation resources and capacity are scarce, and to UNSCR 1540 implementation via a European Council
other concerns—for example, extreme poverty, HIV/ Joint Action, which is a mechanism guiding cooperative
AIDS, and conflict—often take priority over WMD non- EU efforts. Starting in May 2008, the EU Joint Action
proliferation. supported six workshops in regions requiring implemen-
Given this state of affairs, it is encouraging that the tation assistance. The regional outreach was aimed at
GP has acknowledged UNSCR 1540 implementation building in-country capacity for export controls, border
as a potential area for future engagement. The GP has security and customs.
the resources and knowledge to be an effective force in The GP can provide targeted bilateral assistance
moving forward the implementation of Resolution 1540. and support for international organizations working to
Furthermore, it is appropriate for the G-8 and the GP strengthen compliance with WMD-related measures
writ large to act as a vehicle for pursuing worldwide and, in so doing, contribute to UNSCR 1540 implemen-
implementation of this WMD terrorism countermeasure tation. Another concept that has gained considerable
because, as Canadian Prime Minister Stephen Harper traction in recent years is the potential for regional or-
** has stated: “The G-8 is an institution with a proven re- ganizations to facilitate and promote UNSCR 1540 im-
6XPPLW cord of moving agendas forward, of drawing attention plementation among their member states. Directing GP

funding to bolster the capacity of regional organizations
in contributing to UNSCR 1540 implementation, espe-
cially in the developing world, would be a significant
contribution to global WMD counterterrorism efforts.
Why focus on regional organizations? The UN Char-
ter confers upon regional arrangements a mandate to
play a role in maintaining international peace and se-
curity. This concept received more attention after the
Cold War, and today regional organizations are widely
accepted as important complements to the UN in ad-
dressing all types of international security threats. In
2006, for example, then-UN Secretary-General Kofi An-
nan emphasized that regional organizations are appro-
priate arrangements to share the burden of maintaining
global peace and security and that this burden-sharing
includes the implementation of UNSCR 1540. Indeed,
the resolution and its follow-up measures, UNSCR 1673
and UNSCR 1810, embrace the concept that regional
organizations should play a role in facilitating and pro-
moting implementation of UNSCR 1540. This perspec-
tive has been reiterated by former 1540 Committee
Chairmen Peter Burian and Jorge Urbina, as well as the
current Committee head, Claude Heller. There is also a
record of support among UN member states.
As such, policymakers and scholars have identified
regional organizations as appropriate forums to help
assuage current resolution 1540 implementation chal-
lenges. Regional arrangements consist of similar states
with shared histories, interests and concerns, and they
inherently understand local priorities, strengths and
weaknesses. If states within regional organizations col-
laborate, regional entities are well-suited to effectively
pool resources, share UNSCR 1540 implementation
experiences among their membership, identify where
assistance is necessary, and pinpoint potential donors
within and outside their membership.
In fact, regional organizations in Africa, Latin Ameri-
ca, the Caribbean, the Middle East, Southeast Asia, and
the Pacific Islands have already offered support or even
passed resolutions that endorse UNSCR 1540 imple-
mentation among their memberships. This is one im-
portant indicator that the cohesion necessary for imple-
mentation is already present in several regional bodies.
It also shows that early concerns about the resolution’s
legitimacy, especially among developing states, have
dissipated.
A regional focus to implement UNSCR 1540 is also
logical because the resolution’s provisions, such as ef-
fective border security, unavoidably entail cooperation
between neighboring countries. The regional perspec-
tive can help ensure consistency so that efforts are not
duplicated and already scarce resources do not go to
waste. For example, regional organizations can be the
ideal forum where states discuss and establish cost-
sharing plans or exchange model legislation. This prac-
tice is a win-win for all countries.
Considering the potential contributions regional
organizations can offer in implementing UNSCR 1540
among their members, it is encouraging that several
regional bodies have broadly defined security foci in-
cluding, inter alia, terrorism, transnational trafficking in
all its aspects, and related cross-border criminal activi-
ties. These foci offer the opportunity for UNSCR 1540
implementation and in some cases activities are already
ongoing.
One case in point is the Organization of American
States, which has not only passed a resolution sup-
porting the implementation of UNSCR 1540, but has
also organized workshops and other programming to
that end. One of these workshops in May 2008 was
attended by senior officials from foreign and defense
ministries of 20 countries, including Caribbean Commu-
nity (CARICOM) states. Together with officials from the
United Nations and other international organizations,
participants discussed the status of implementation,
lessons learned among states in developing national
UNSCR 1540 implementation plans, and the role of re-
gional organizations in assisting members to achieve full
1540 compliance. **
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 Several countries at the workshop recognized the combat WMD terrorism also have the responsibility to
important role of regional organizations in assisting their do so. The GP has the opportunity to share its leader-
memberships with implementing the resolution and it ship, resources, and knowledge by engaging in UNSCR
was suggested that these bodies establish a point of 1540 implementation by developing the capabilities of
contact to help coordinate the efforts. Subsequently, regional organizations worldwide as part of the Partner-
CARICOM named a full-time regional coordinator who ship’s overall extension and expansion.
has established points of contact for 1540 implementa- Ultimately, providing opportunities for countries
tion in more than half of CARICOM’s member states. in developing regions to implement Resolution 1540
Several countries have formed interagency coordinat- through regional organizations is not only an act of glob-
ing groups, and five have drafted national action plans. al solidarity, but also a demonstration of an understand-
CARICOM also followed up by co-hosting an experts’ ing by the G-8 that in the 21st century, in the words of
workshop on export controls and maritime security. Annan, “the security of every one of us is linked to that
However, like their members, several of these re- of everyone else…We all share responsibility for each
gional organizations are developing entities that lack other’s security, and only by working to make each other
the means to achieve their objectives. The G-8 GP can secure can we hope to achieve lasting security for our-
be the necessary funding vehicle that shores up the selves.”
implementation capacity of regional organizations and
ensures that they can fulfill their potential as facilitators
of security related measures, including UNSCR 1540
implementation. Moreover, this route is likely to mitigate
concerns about national sovereignty by allowing devel-
oped states to be supportive in a non-intrusive manner.
Despite its legal mandate for all states to implement its
measures, no enforcement mechanism for Resolution
1540 exists. It is thus advantageous to provide funding
and assistance through regional organizations, which
have credibility, legitimacy, and support from member
states.
The GP has stated that “maintaining a high level of
global security will only be possible by strengthening
the weakest links.” In connection with UNSCR 1540,
one senior U.S. diplomat has correctly noted that “[f]
ull implementation is essential for a simple reason: pro-
liferators seek out the weakest links, be they poorly se- 1 For an in depth discussion on the role of regional organizations in facili-
cured materials, unguarded borders, or judicial systems tating and promoting implementation of UNSCR 1540 see Implementing
too frail to prosecute perpetrators. In our interconnected Resolution 1540: the Role of Regional Organizations (Lawrence Schein-
world, a single gap in our common defense can threaten man, ed., including a chapter by the author of this article). The book was
a joint project by the United Nations Institute for Disarmament Research
us all.” and the Monterey Institute of International Studies.
The global community cannot allow any country to 2 Remarks by Ambassador Alejandro Wolff, U.S. Deputy Permanent

be exploited by terrorist organizations seeking WMD. It Representative to the United Nations, during the Comprehensive Review
is not a “they” problem but an issue that all states need of Resolution 1540, September 30, 2009.
to reckon with. All countries that have the capacity to

**
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**
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 9L]VS\[PVUPaL[OL>VYSK¶6UL7S\NH[H;PTL
By Ron Dembo
Revolutions Often Come from
Unexpected Places
The moment in July 1969 when Neil Armstrong
stepped onto the moon’s surface is etched in our col-
lective memory. Just three months later, Charley Kline,
a student programmer at the University of California,
Los Angeles, sent the first electronic message over a
computer network. Unfortunately, the system crashed
after only two letters had been transmitted. While Arm-
strong’s first step on the moon was a great leap for man-
kind, Kline’s two letters had a more profound effect on
our day-to-day lives.
Sometimes it is not the headline-grabbing events
that have the most impact, but these seemingly small
developments that in time transform our lives. Often,
developments take advantage of a wider environment
of advances, linking them in a way that is greater than
the sum of all parts, unleashing whole new realms of
possibility.
We are about to witness a transformation in our re-
lationship to electricity. Electricity will become a com-
modity and we will be the traders. With the advent of
“talking plugs” - devices that can send information over
the Internet showing what each and every appliance is
consuming in real time - we will shift from being passive
users of electricity to active managers. As with the In-
ternet, the world is about to be transformed once more.
Talking Plugs
Almost none of our appliances, buildings and infra-
structure have the built-in capability for intelligence or
interaction. It would take many years and would be too
costly to replace our TVs, refrigerators, washing ma-
chines, water heaters and air conditioners with a new
generation of smart appliances. So we propose another
possibility: insert intelligence and communications ca-
pabilities and integrate software at the point where our
standard appliances meet the power supply - at the
plug.
These new devices - called ‘talking plugs’ (www.
talkingplug.com) - use a combination of radio frequency
chips and sensors to identify the appliances plugged
into sockets and monitor their power consumption.
Wireless communications and the Internet allow this in-
formation to be sent wherever we like - to a dashboard
that displays our energy consumption, to software that
can figure out the optimal operation of the appliances, or
even to those operating the electricity grid. We can use
this same communications channel to send instructions
back to the appliances from the grid operator to turn
them off and reduce peak loads.
**
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There are a number of applications of this new tech-
nology that we can implement right now that will imme-
diately reduce our electricity consumption, save on our
energy bills and cut the carbon our power generation
plants are dumping into the atmosphere. Saving elec-
tricity is a sweet spot in fighting climate change. It is
the least expensive form of increasing supply. It is where
everybody wins - the consumer, the producer and the
world.
Our electrical grid was designed over a hundred
years ago on a simple supply and demand model that
assumes that users will demand electricity and the grid
will supply it. As a consequence, in Britain grid operators
dread the ad breaks in soap operas or sports events
because millions of people turn on their kettles and the
operators have to scramble to provide them with power.
They send water pouring over hydroelectric dams in
Scotland, pull electricity in from France - all because
of the disconnect between users and suppliers. Con-
sumers have no information about their impact on the
power generation infrastructure, and no incentive to be-
have any differently. The price of a kilowatt of electricity
in most jurisdictions is the same whether it is scarce or
abundant.
That was OK when there were two billion people on
the planet, with only a relative handful having access to
electricity and just a few appliances in our homes. But
the demand for power is growing, and will continue to
grow exponentially.
Not only do homes in the developed world have
many more gadgets than before, but in the developing
world electricity means lighting, a water supply, heating,
cell-phones, cooling and communications - all the things
we associate with progress.
We cannot support this growth in demand with
business-as-usual power consumption. Our environ-
ment won’t tolerate it. We need to see what we are con-
suming to understand our impact. To do this, we need
more sophisticated controls than just the on/off switch.
Talking plug technology gives us just this flexibility - it
makes our appliances “intelligent” by inserting software
between the appliance and the plug.
A Smart New World
Picture a world where every plug and light switch is
able to report via Internet connection exactly what ap-
pliance is attached to it, whether it is on or off, and how
much energy it is using. At the same time, we are able
to talk back to all the plugs and switches via the same
connections, and monitor and control their operation.
Now, imagine what could happen.
You would walk into your office, house or apartment
and know exactly what energy was being consumed
and where. The talking plugs would be monitoring every
appliance and piece of equipment, and reporting back
on a display on your computer. You could take advan-
tage of the talking plugs’ two-way communication and
pre-program them to cut down your energy spend. You
could instruct all appliances plugged in but not in use
to be switched firmly off, so there would be no wasteful
leakage of electricity into TV set-top boxes or idle phone
chargers. And you could tell your water heater and air-
conditioning not to come on unless you were there or
were close to home, and same thing with the lights. The
talking plugs would know you were home because you
could program them to pick up your cell phone signal
based on your GPS coordinates.
Just taking the simple step of turning off appliances
not in use could save a significant amount of electric-
ity. Experiments in North Carolina and elsewhere have
demonstrated that when people are made aware of the
phantom consumption of energy in their homes they
take action that helps cut their bills by 15 percent on
average.
Imagine if we applied these same techniques to
offices, shops, hospitals, universities and other large
buildings. Buildings account for 40 percent of carbon
emissions in North America, and the figure is similar for
many other countries. Just using talking plugs to elimi-
nate phantom consumption and reduce total building
emissions by 15 percent in the US alone would have
a staggering impact. The US currently emits just under
6 billion metric tons of carbon per year. A 15 percent
reduction in US building emissions would be the equiva-
lent of eliminating the carbon emissions for the whole
country of Spain.
An Intelligent Grid
Now picture an intelligent grid where the grid opera-
tor could price electricity according to demand. We are
moving in this direction in some places where there is
now real-time commercial electricity pricing and tiered
pricing for retail consumers. With real-time pricing, the
grid operator can raise the price up at peak times and
lower it when demand falls. We could program our hot
water heaters, washing machines, dryers and dish-
washers to only operate at the most economical times
or when we absolutely need them. This would shave
even more off our energy bills. Experiments have shown
that savings of up to 40 percent can be achieved in this
way. This would also give utilities the tools to manage
incentive programs that reduce their costs.
Spikes in electricity demand are far more costly and
polluting than off-peak operation of the grid. This is be-
cause the oldest, dirtiest and least efficient power plants
are brought on-stream last to meet peak demands. To
give you an idea of the impact of this, in Ontario, Can-
ada, a 10 percent increase in peak demand can mean
a 40 percent increase in the cost of power generation.
If we can smooth the peaks in demand, we can signifi-
cantly reduce costs and carbon emissions.
Electricity demand can spike when there is a cold
snap or a sudden rise in temperature, or when everyone
wants to run appliances at the same time. With an intel-
ligent grid, the operators could reflect electricity demand
in the price, raising it steeply when there is a threat of
a spike. Talking plugs would monitor the price, and as
it rose they would begin to switch off non-essential ap-
pliances, and turn others down - for example, lowering
the temperature of a thermostat on a heating system.
All these responses can be simply pre-programmed into
the plugs via control software. In Ontario today, users
pay just over 5 cents per kilowatt-hour (kWh) at midday
on a sunny summer day, with all their air conditioning
systems going, while the grid operator has to buy elec-
tricity from Ohio, produced with polluting coal-based
generators, for over 50 cents per kWh to meet the de-
mand. Clearly, there would be tremendous benefit in
giving users incentives to change their behavior in a way
that would smooth out the load demand on our utilities.
We are moving to a world where renewable energy
will form a much bigger part of our energy mix. This
poses a new and interesting problem. The wind might
blow or the sun might shine just when we don’t need
the excess power - a problem Denmark has today. So
what do we do with the excess electricity? With the right
pricing signals and the controls afforded by talking plugs
we will be able to offload the excess into our homes. Our
hot water tanks and car batteries will store this excess
energy to reduce the pressure on the electrical system
when electricity is scarce. Our homes, offices and cars
will become one large, distributed storage device. This
will change our relationship to electricity entirely. We will
all become efficient traders of electricity enabled by talk-
ing plugs.
Talking Plugs and Smart Phones
Talking plugs leverage the ubiquity of smart phones
and the connectivity of the Internet. Because the control
mechanism between the user and the plug is software,
nearly any action could be programmed in. The plugs
could be programmed to apply rules to the appliances
attached to them. For example, they could be told how
much current an appliance was expected to draw, so
that if someone fitted a 100-watt bulb to a lamp that
could only take a maximum of 60 watts, the plug could
turn the lamp off until the correct bulb was fitted. Or
the plug could check whether a warranty had been ap-
proved before turning a new appliance on.
Talking plugs give every appliance a unique identi-
**
6XPPLW

 fier. With appliances communicating with the Internet via Conclusion
the talking plug, manufacturers can keep track of their Talking plug technology has the potential to trans-
products in the same way computer manufacturers and form our environment and provide us with tools to elimi-
software developers keep track of their products now. nate energy waste, use electricity more efficiently and
This can have many benefits both for the manufacturers significantly cut damaging carbon emissions. They can
and the users. The Coca Cola Company could monitor link consumers and producers to arbitrage energy costs
all its vending machines remotely and devise ways of for the benefit of everyone.
reducing their electricity consumption and cost. Maytag Talking plugs are not a mad scientist’s dream. They
could alert owners when their washing machines need are here today, and are already being applied to real
servicing. world problems and the challenge of climate change.
Talking plugs could also be used to achieve the old To find out more contact info@talkingplug.com or info@
Popular Science vision of the intelligent home that knows zerofootprint.net .
when you are about to arrive and gets everything ready
for you. Your talking plug control system could monitor About Zerofootprint
your cell phone signal, and when you were a certain dis- Zerofootprint is a socially responsible enterprise
tance from home, switch on those appliances - heating whose mission is to apply technology, design and risk
or air conditioning, coffee machine, etc. - that you need management to the massive reduction of our environ-
when you arrive. With today’s iPhones and Blackberrys mental footprint. We operate both in the for-profit and
equipped with GPS, it is a simple matter to tell a talking charitable domains through two entities, Zerofootprint
plug where you are located. Software and Zerofootprint Foundation using shared
technology.
You Will be Trading Electricity
The problem with green energy sources such as
wind, solar and wave power is that they can vary with
the weather. Until now there has been no effective way
of storing excess electricity generated under ideal con-
ditions for distribution when the conditions are less fa-
vorable.
Imagine you are on holiday - your car is at home. It
is three in the morning. The wind is blowing hard. Your
car communicates with the grid and takes in cheap ex-
cess electricity, filling its battery at two cents per kWh.
Through its talking plug, since you are away, your car of-
fers electricity back to the grid at midday the next day for
eight cents a kWh. The utility is happy - it has reduced
peak load and has sold excess energy. You are happy
- you’ve made some money while on holiday. And the
environment is better off. Who would have thought you
would become a trader of electricity?
Talking plugs could be a key agent in facilitating
this new market. You could program your talking plug
to trade with the grid, while ensuring your battery was
topped up when you needed it. Measures such as these
begin to turn electricity into a commodity that is traded
between the homeowner (or business, university, de-
partment store, etc.) and the grid operator. Electricity will
become like a liquid stock with a market price, with indi-
viduals able to arbitrage and buy and sell to the market.
Ultimately, this should smooth the demand curve, and
enable much more efficient use of our energy resources. Software powered by:

**
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**
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 -YVT:PJR*HYL[V/LHS[O*HYL
By Carlos Manuel García, Medical Doctor
I applaud President Obama for taking on healthcare
reform. It is a gargantuan issue facing not just the U.S.
but the entire world. I too believe that our system is bro-
ken and in need of change, however, I think Washington
is barking up the wrong tree. They are busy arguing
about coverage and access for the current “sick-care”
system when what the country truly needs is “health-
care” reform; reform that shifts the focus from a symp-
tom-suppression model of sick-care to one of prevention
and wellness and one that eliminates the unnecessary
reliance on pharmaceuticals. Utopia Wellness offers just
that approach and can serve as a model for this change.
Ironically, Washington appears to mirror the prob-
lems that exist in Western Medicine. It is motivated by
profit, not by result, and it appears that ‘sick-care’ is
more lucrative than health-care. Sick-care treats symp-
toms instead of dealing with the root causes of disease.
Western medicine is not the medicine of the future be-
cause it does not address why we are unhealthy and
how to change. If we do not change why we are un-
healthy, we will continue to get poor medical outcomes
and it will probably bankrupt us. In terms of getting bet-
ter health care or becoming a healthier nation we have
to make serious changes. We will only flourish when we
address the root causes of the problem.
For 2,200 years until 1805, medicine was practiced
exclusively according to the ancient Greek physician
Hippocrates (460-377 BC), the founding father of natu-
ral medicine. He taught that the first and foremost prin-
ciple of medicine must be to respect nature’s healing
forces, which inhabit each living organism. Hippocrates
considered illness a natural phenomenon that forced
people to discover the imbalances in their health. He
strongly believed in good food and related the course
of any ailment to poor nutrition and bad eating habits.
He stressed, “Let food be your medicine and medicine
be your food,” advice that, to this day, has not lost its
** validity.
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During the 1800’s, a new school of medicine
emerged: The Allopathic or Western school. This new
school was based on pharmaceuticals and patents.
The dogma being that doctors can cure provided they
have the correct technology and drugs. During this time,
however, there were still more Homeopaths and Natu-
ropaths because that is what the schools taught and
the patients demanded. They charged more and made
more revenue than allopathic doctors so it was the field
of choice for most physicians. With its financial power,
however, the pharmaceutical industry soon gained con-
trol over modern medicine.
By the 1920’s, through legislative maneuvering by
the pharmaceutical industry, only one homeopathic
school remained, but ultimately closed it’s doors by the
1930s. Today, America has no homeopathic school. All
medicine taught and practiced in the U.S. is allopath-
ic. We have left our naturopathic roots all in the name
of technology, profits, and greed. Regretfully, western
medicine now reins supreme in the war on disea se but
as the statistics will show, we just keep getting sicker
while spending more than ever on healthcare.
A shift to prevention and wellness is the only way
we are going to get a grip on skyrocketing health-
care costs. To date, prevention and public health are
the missing pieces in the national conversation about
health-care reform. I believe this is due in large part to
the strong lobbying power of the pharmaceutical indus-
try. Their voices are loud and their pockets are deep.
This type of reform is not in their financial best interests.
The American medical industrial complex is Ameri-
ca’s second largest industry sector. Conventional medi-
cal treatments equate to big profits for drug companies
and the entire medical industry. What is best for the pa-
tient is no longer of concern, what is best for the econo-
my rules (mengalarian economics). Treatments with the
highest reimbursement rates and potentially dangerous
patentable synthetic drugs are the only choices offered
to patients and, in some instances, imposed upon them.
I believe that the symptom-suppression model of
sick-care provides insight into why our system remains
broken. If people are depressed they are prescribed an-
tidepressants such as Prozac. If people have high cho-
lesterol they are prescribed cholesterol-lowering medica-
tion like Lipitor. If they cannot sleep they are prescribed
sleep aids such as Lunesta. While these medications
can be extremely effective against the symptoms, they
are overprescribed, frequently unnecessary and carry
their own risks of side effects, sometimes deadly. Miss-
ing is the identification and treatment of the root cause
of the symptoms. More importantly, these symptoms
can be easily resolved with natural and safe methods.
Another real danger with pharmaceuticals is the pri-
mary reason they are profitable. They cannot be found
in nature. They are man-made patentable synthetics.
It is interesting to note, the origins of synthetics begin
with Nature. In industry’s zeal for patents, they try to
manipulate nature for the sake of profit and often at
a very high cost. Our bodies are designed to respond
to nature, not the unnatural Pharmaceuticals. We are
messing with Mother Nature and the ultimate long-term
consequences are yet to be realized.
Change is needed but change will be met much re-
sistance. The first step needed is to revamp the orga-
nizations that dictate how medicine is delivered. This
will not be an easy feat because the sick-care system
is indoctrinated into our society and huge profits rely on
its survival. To protect their profits, they have formed a
strong coalition with lawmakers, government agencies,
and medical doctors.
The three key players in the current sick-care sys-
tem are Big Pharma, the Food and Drug Administration
(FDA), and the American Medical Association (AMA).
This triad decides how medicine is practiced and what
drugs and/or treatments are permitted. Disappointingly,
this system has failed and there are several conflicts of
interest that prevent this system from ever working.
At the top of the triad is Big Pharma. They are mo-
tivated strictly by profits and a large percentage of their
budgets go into protecting those profits through lob-
bying, marketing, and advertising. With the assistance
of the FDA, Big Pharma was granted the legal right to
advertise directly to the public in 1997. Millions went
into radio, television, and magazine ads. Coinciden-
tally, mass news media, which is now essentially a big
corporate conglomerate owned enterprise, offers little
or no effective investigative reporting into much of any
topic, which could seriously affect the current profits or
planned profits of big Pharma (their advertisers and/or
owners).
A 2008 study by two York University researchers es-
timates the U.S. pharmaceutical industry spends almost
twice as much on promotion as it does on research and
development, contrary to the industry’s claim. These
vast expenditures dwarf the budget for the research
and development of new drugs. The unfortunate fact is
the great majority of “new” drugs are not new at all but
merely variations of older drugs already on the market.
The second member of the triad is the Food and
Drug Administration. The FDA is an agency within the
United States Department of Health and Human Ser-
vices that is responsible for protecting and promoting
the nation’s public health. That is what they are sup-
posed to do but is that what they actually do? Unfortu-
nately, the FDA has corrupt and incestuous ties with Big
Pharma. Keep in mind major funding to the FDA comes
from Big Pharma. They are the FDA’s biggest client and
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 will often use their power to influence regulation.
On top of that they are actively preventing Ameri-
cans from exploring safe and natural alternatives. Last
year the FDA launched an onslaught of attacks against
alternative healthcare, the vitamin and supplement in-
dustry, and doctors that practice and promote alterna-
tive medicine—no doubt at the urging of Big Pharma
whose profits are threatened by an increase in the pop-
ularity of alternative medicine.
The third member of the triad is the American Medi-
cal Association. The AMA is a guild established to pro-
tect the interest of its doctor members, not the public.
Through the use of government power, the AMA has
come to control medical education, licensure, treat-
ment, and price. The AMA is a monopoly in a constant
quest for higher incomes through lower competition.
The only way to eliminate corruption is to remove the
AMA’s grip on the marketplace and subject the entire
industry to competition.
There are other economic factors that contribute to
the status quo state of healthcare. Insurance compa-
nies follow the AMA’s procedural codes for determining
what is reimbursable and what is excluded. If the pro-
cedure does not have a code, it usually is not covered
by health insurance plans. As an aside, there are virtu-
ally no procedural codes for natural medicine. Without
insurance reimbursement, doctors will not offer these
options. Doctors will follow the money.
I do believe that people would embrace natural
medicine if it was offered as a viable option and if more
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medical doctors offered it. The primary obstacles that
prevent many doctors from practicing natural medicine
lie with the triad. Thanks to the AMA, doctors are not
taught about nutrition and natural cures. More impor-
tantly they are ostracized and their licenses are at risk
if they prescribe herbs and supplements. The FDA has
the power to regulate how medicine is delivered and
what medicines are legal. Big Pharma has the financial
wherewithal to control the other two.
It will be up to our legislatures to disarm this triad
if change can occur. There is a silent war occurring
right now in Washington against natural and alternative
medicine. The triad recognizes alternative medicine as
a threat and is manipulating current legislation in an at-
tempt to quash their opponents before the fight even
becomes public. To practice natural medicine today is
to take your career and your life in your own hands.
Not many doctors are willing to stand up and fight
for their patients with these impending threats. I am one
of those few. I took an oath to do no harm and I live by
that creed. I cannot sit back and write a prescription
for a drug when there is a natural and safe remedy that
exists. Like Hippocrates, I believe nature holds the an-
swers to our health. Disease is a warning sign that there
is an imbalance. All we need to do is listen.
To better understand my theory about disease and
it’s prevalence in the world today, I would like to offer
this analogy. If you look at the theory of evolution, life
began with one organism, a carbon dioxide breathing
amoeba. Oxygen was poison so it would diffuse out
into the atmosphere. Eventually, the atmosphere be- mankind is not even able to understand the details of
came rich in oxygen and the amoeba was required by the present order in the immune system, despite all the
nature to mutate in order to survive. technology at its disposal—much less imitate it.
Our environment has changed dramatically over the Traditional medicine works against nature attempt-
last century. The air we breathe, the water we drink, and ing to conquer and improve upon the system. We work
the food we eat are filled with man-made chemicals, with the body and enhance its innate ability to heal. It’s
hormones, and pesticides that overload the kidneys, liv- not rocket science, nor does it need to be. The medical
er, and the entire immune system. Studies show these industry places so much time and resources into “rec-
toxins have been associated with hormone disruption, reating the wheel” that we don’t even see the answer
immune system suppression, reproductive disorders, right before our eyes. We can’t top the immune system
several types of cancer, and other disorders such as for fighting disease. If you can’t beat them…join them.
allergies. Our bodies were not designed to thrive in this Utopia Wellness accomplishes this through a multi-
new environment and through these symptoms nature prong approach. While every case and how we ap-
is telling us change is needed. proach it is different, generally, many of our programs
I believe disease is a symptom. Allopathic medicine include dietary and nutritional counseling, immunother-
would dictate if you remove the symptom through phar- apy, vitamin, mineral and antioxidant therapies, oxygen
maceuticals or surgery the body will be healthy again. therapy, chelation therapy, detoxification and emotional
I don’t accept that. I want to know what caused that support through the mind and body healing connection.
symptom. Until we address the factors that lead to the All of Utopia’s programs are designed to help our
symptom, the disease will return and potentially more patients achieve optimal health. We work with our pa-
aggressively. tients to design a customized treatment plan based on
Many factors lead to a breakdown in our bodies’ their goals, needs, health, and financial means. It is af-
defenses. All of these factors are “fixable” with safe fordable and needs to be in view of the fact that health
and natural methods. When we bring in the holistic ap- insurance plans rarely cover preventative and natural
proach, we are giving the body the tools to repair itself. medicine.
I don’t cure disease. I don’t even treat disease. I treat I truly believe our approach is unsurpassed by of-
patients and help guide in their quest for complete well- fering the safest, least invasive, most effective, and af-
ness. The fact that symptoms disappear in the process fordable options available. It is the wave of the future
is proof they are regaining control of their health. and can transform a sick-care system into a health-care
Real reform will come when we start to look at our- system that works. With Utopia Wellness as the model
selves as responsible participants in our own health. healthcare system, true reform can occur.
We have the ability to prevent disease and achieve
complete wellness if our leaders introduce legislation
enabling access to these alternatives. We need to clean
up our environment, clean our bodies of the toxins we
absorb, properly nourish our bodies, and take a natural
approach to our medical issues. I truly believe this is
the answer to the healthcare dilemma and I have a clinic
that offers just that. Perhaps it can serve as a model for
medicine of the future.
Utopia Wellness is an integrative, holistic and pa-
tient-focused healthcare clinic. It is one of only a hand-
ful of clinics around the world that is moving beyond
the limitations of conventional treatments and is thinking
outside the box. We address many medical issues ef-
fectively using natural medicine and eliminating the un-
necessary reliance on pharmaceuticals with a full menu
of wellness programs that complement each other by
addressing all issues related to wellbeing. Our focus is
on restoring the health of the whole body so it can do
what it has been designed to do, heal.
Mother nature has endowed us with a perfectly de-
signed immune system. This system protects man from
certain death, although he is not even aware that such
a perfect system is at work in his own body. Today,
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 >PUK,ULYN`PU*HUHKH! 6]LY]PL^
By Robert Hornung, President of the Canadian Wind Energy Association (CanWEA)

Canada ranks 11th in the

world in terms of installed
capacity, and 18th with re-
spect to the contribution
wind energy makes to meet-
ing overall electricity demand
in the country. These rank-
ings stand in sharp contrast
to the immense possibilities
that Canada’s geography and
wind resources provide for
wind energy development in
the world’s sixth largest elec-
tricity system.
Canada is now starting to tap into its massive wind
energy potential, however, and the wind energy industry
has entered 2010 on a high note. In spite of a global
financial crisis and economic downturn, 950 MW of new
wind energy capacity was installed in eight provinces
across Canada in 2009—a record year for our indus-
try. These projects, representing more than $2 billion in
investment, increased Canada’s installed wind energy
capacity by 40 percent in one year to reach a new total
of 3,319 MW. In 2010, Canada’s existing wind farms will
produce enough electricity to power more than one mil-
lion Canadian homes.
The good news is that 2009 does not represent a
peak for wind energy development in Canada, but is
simply another step on the exponential growth curve
that has seen Canada’s wind energy capacity increase Provincial Initiatives
10-fold in the last six years. In fact, it is already clear that
2010 will be another strong year for our industry and NF and Labrador
there is little doubt that Canada will easily surpass 4,000 The 27 MW Fermeuse project was commissioned in
MW of total installed capacity before year’s end. Newfoundland and Labrador in 2009, bringing the prov-
In addition to the wind energy projects scheduled ince’s total installed wind capacity to 54.4 MW. A New-
to be built and commissioned in Canada over the next foundland and Labrador Hydro research project that will
12 months, we expect to see new requests for propos- integrate wind power with hydrogen and diesel genera-
als and/or contracts issued for wind energy projects in tion to provide cleaner electricity to remote communities
British Columbia, Saskatchewan, Manitoba, Ontario, is expected to be commissioned in 2010, adding an ad-
Quebec, New Brunswick, Nova Scotia, and Prince Ed- ditional 300 kW of new wind energy capacity.
ward Island. Following the implementation of Ontario’s
groundbreaking Green Energy Act in 2009, we now see New Brunswick
provinces like British Columbia and Nova Scotia review- New Brunswick Power issued a request for pro-
ing their renewable energy policies with an eye to mak- posals in June 2009 for up to 100 MW of wind power
ing changes to accelerate wind energy deployment. As and has since signed a 25-year contract with TransAlta
a result, we expect that 2010 will lay the foundation for Corporation for a 54 MW expansion to its 96 MW Kent
significant additional growth in wind energy in Canada— Hills project. The province currently has 195 MW of in-
beyond the 4,000+ MW already contracted to be built in stalled wind and has two more projects totaling 114 MW
the next several years. under contract. GDF Suez Energy North America’s XX
MW Caribou Mountain project was also commissioned
in 2009.

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**
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 PEI
GDF Suez Energy North America’s 79.2 MW West
Cape Phase 2 wind farm and the City of Summerside’s
12 MW wind project boosted Prince Edward Island’s
wind capacity to 164 MW in 2009. It should be noted
that PEI’s peak load is only 200 MW. Maritime Electric,
the investor-owned utility that serves PEI, issued a re-
quest for proposals for 30 MW of renewable energy to
meet domestic need, and another 100 MW for export
off-Island, and expects to sign contracts by April 30,
2010. The province has a target of 500 MW of wind by
2013.
Nova Scotia
Nova Scotia strengthened its renewable portfolio
standard in 2009 and is now considering new policy
approaches with respect to Renewable Energy to meet
these new targets. The new standard requires that 25
per cent of the province’s electricity needs be met with
renewable sources by 2015. Nova Scotia Power signed
contracts in 2008 for seven wind projects totaling 244
MW and the first of these projects—the 51 MW Dalhou-
sie Mountain project—came on line in 2009. Nova Sco-
tia currently has 110 MW of installed wind capacity.
Quebec
Northland Power Income Fund brought its 127.5
MW Jardin d’Eole Wind Farm on line in Quebec in 2009.
The province has 659 MW of wind on its system and its
government-owned utility, Hydro-Quebec, has signed
power purchase agreements for another 2,672 MW to
be installed between now and 2015. The utility issued
a new request for proposals in April 2009 for 500 MW
of smaller-scale wind projects that have equity partici-
pation from municipalities and First Nations and these
contracts are likely to be awarded in 2010.
Ontario
The Green Energy Act, a comprehensive policy
framework to support wind energy deployment was pro-
claimed in 2009. In 2010 the first 20-year contracts will
be signed under the province’s new feed-in-tariff, which
offers $0.13.5/kWh for onshore wind farms, with an ex-
tra cent added on for small-scale community projects
and an additional C$0.015/kWh for First Nations proj-
ects. Offshore projects will get a rate of $0.19/kWh. With
2,500 MW of available transmission capacity, over 8,000
MW of projects are now seeking feed-in-tariff contracts.
An ambitious plan for investment in new transmission
capacity will get underway in 2010. While the Ontario
Power Authority’s draft Integrated Power System Plan
called for 4,600 MW of wind energy in Ontario by 2020,
it is expected that the Green Energy Act will allow this
target to be surpassed. Three new wind energy proj-
ects came on line in the province in 2009, including
** Enbridge’s 181.5 MW Ontario Wind Power project, Sky
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Generation’s 6.6 MW Proof Line project, and TransAl-
ta’s 197.8 MW Wolfe Island project. Ontario leads the
country with 1,168 MW of installed wind capacity, with
another 647 MW of additional wind energy projects cur-
rently under contract.
Manitoba
Manitoba Hydro recently awarded a power purchase
agreement for Manitoba’s second wind energy project, a
138 MW facility that is to become operational by no later
than 2011. There will then be 242 MW of wind energy in
Manitoba. Future plans for wind energy development in
the province are unclear at this time.
Saskatchewan
Government-owned SaskPower will issue a request
for proposals for 175 MW of wind from independent
power producers in 2010, to add to the 171 MW cur-
rently operating in the province. It also plans to introduce
a fixed-price standing offer program that will net a fur-
ther 25 MW from smaller-scale projects.
Alberta
Alberta’s wind capacity increased to 590 MW in
2009 with the commissioning of TransAlta’s 66 MW Blue
Trail Wind Farm. The province’s energy regulator also
approved plans for new transmission additions across
the south that will allow another 3,000 MW of wind to
connect to the system. While a significant step forward,
it is worth noting that significantly more projects are
seeking an opportunity to connect to the grid.
British Columbia
British Columbia has made a commitment to devel-
op and implement a new Clean Energy Act informed by
four task forces that reported to the premier on ways to
accelerate renewable energy development in the prov-
ince. AltaGas Income Trust installed BC’s first wind proj-
ect, the 102 MW Bear Mountain Wind Park, and two
other projects with a combined capacity of 169 MW are
expected on line by 2011. BC Hydro has very recently
awarded several new wind energy projects, representing
435 MW of capacity, with new power purchase agree-
ments in the first set of awards under their recent Clean
Power Call.
Federal Government
The federal government’s 2010 Budget failed to
renew support of Canada’s EcoEnergy for Renewable
Power Program. Established in 2007 to support the
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 deployment of approximately 4,000 MW of new low-im-
pact, renewable electricity projects by March 31, 2011,
the EcoEnergy for Renewable Power Program was of-
fering a C$0.01/kWh payment for the first 10 years of
a project’s life. While the program will continue to sup-
port the deployment of 1,300 MW of new wind energy
projects in Canada in 2010-2011, all funds under the
program have now been fully allocated and no other
projects will be able to secure financial assistance from
the federal government. This will put more pressure on
provincial governments to develop and deliver competi-
tive investment frameworks for wind energy projects in a
North American context.
The Future
Between now and 2020, it is projected that $1.8
trillion will be invested in wind energy projects globally,
creating more than 1.75 million jobs. If Canada wishes
to capture a growing portion of this rapidly expanding
global economic opportunity, and is seeking to maxi-
mize the economic and environmental benefits of wind
energy development, it will need to develop a more
comprehensive and strategic approach to wind energy
development.
CanWEA’s WindVision 2025 promotes a scenario
wherein Canada meets 20 per cent of its electricity de-
mand through wind energy by 2025. This would require
$80 billion of new investment in Canada and would cre-
ate more than 50,000 permanent jobs. To make WindVi-
sion 2025 a Canadian reality, CanWEA believes that six
things have to happen:
• Wind energy must become a national priority;
• We must acknowledge the fair value of wind en-
ergy’s environmental attributes in the marketplace;
• Establish effective, stable and long-term wind en-
** ergy procurement practices;
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• Plan and building wind-friendly transmission infra-
structure;
• Stimulate and successfully competing for invest-
ments in wind energy equipment manufacturing;
• Streamline permitting and approval processes for
wind energy projects.
CanWEA’s WindVision 2025 offers an opportuni-
ty for all electricity stakeholders to begin to think “big”
about wind energy in Canada. But there is no telling how
much further or faster wind energy could develop down
the road.
A century ago Canada’s electricity pioneer ushered
in the hydropower age. Today, we are poised to repeat
the process, this time with wind. There is little doubt this
new ear will extend far beyond what we are calling for in
WindVision 2025. But we need to get started. It’s time
to start thinking big.
The Canadian Wind Energy Association (CanWEA)
is a non-profit industry association representing more
than 450 members of the wind energy industry, includ-
ing wind turbine manufacturers, component suppliers,
wind energy project developers and a broad range of
service providers to the industry. CanWEA’s mission is to
support the responsible and sustainable development of
wind energy in Canada.
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