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G L O B A L I S S U E S I N P E R S P E C T I V E

24 THE FRUITS OF IMAGINATION 50 THE FIGHT AGAINST BREAST CANCER

Introducing an internationally-acclaimed creative film Breast cancer is on the rise around the world, but new
project that challenges world hunger. technologies mean that the odds of surviving are greater than ever.

26 THE POWER OF 10 54 THE BIGGER PICTURE

Saudi Arabia committed to become one of the top ten Growing understanding of cost-effective but
most competitive destinations in the world by 2010. Goal environmentally sound practices is propelling industry in a
achieved; what next? more sustainable and socially responsible direction.

44 PUTTING PEOPLE FIRST 60 ASSET MANAGEMENT

Klaus Kleinfield, CEO of aluminium company Alcoa, Despite serious concerns about the planet’s future, the
on why it’s nice to be important, but it’s more important to World Wildlife Fund is optimistic about change, and more
be nice. heavyweights are joining the cause.

06
 “VOLUNTEERING IS A
NECESSARY PART OF
CREATING A VIBRANT AND
DYNAMIC CORPORATE
ENVIRONMENT...YOU
UNCOVER ASPECTS YOU
HADN’T PREVIOUSLY BEEN
ABLE TO SEE”
KLAUS KLEINFELD, CEO, ALCOA

64 FALL FOR COLOUR

Where to spend and what to buy to stay on trend
REGULARS OPINION
this autumn. 13 SPECTRUM 32 SAMA CEO SPEAKS TO THINK
THINK spans the globe for creative new ideas THINK talks exclusively to H.E. Dr Muhammed Sulaiman Al-Jasser,
Governor of SAMA, on the topic of a unified GCC currency
68 WANDERLUX 19 PICTURE PERFECT
Travellers might have tightened their belts and stayed A look at the growing popularity of artistic photography along 36 THINK ROUNDTABLE
with some of its brightest new talent
home last year, but this year, they’re not skimping. The euro been operating since 2002 but the recession has
reopened the debate on the workability common currencies
83 FUTURE THINKING
74 PROJECT 60 Efficient living in future New York 39 FORWARD THINKING
Through “Project 60”, the newly established Economic 85 BOOKS The World Future Society’s Futurist of the Year, Theodore J Gordon,
looks at factors that can alter the fate of the world
Cities Authority will showcase the best in contemporary Everything you need to know
Saudi art, starting with the work of Ola Hijazi. 86 VISIONARY 40 WHAT DO YOU THINK?
Dr Craig Venter Graduate and post-graduate students discuss the future of capitalism

07
 SAGIA EDITORIAL ADVISOR Fahd M Hamidaddin
EDITORIAL LIAISON Aseel A Al-Zamil

MOTIVATE PUBLISHING EDITOR-IN-CHIEF Obaid Humaid Al Tayer

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INTERNATIONAL CORRESPONDENTS Ashlee Beard, Steve Hill, Joanne Molina, Glenn Freeman, Lisa Vincenti, Laura Collacott

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WINNER’S CIRCLE
In this issue THINK focuses on the rewards of winning
through unified strategic and tactical approaches.
The joining of hands to form the worlds largest human
ribbon to create awareness of breast cancer; the uniting of
countries to create a stronger single currency and economic
zones - each of these outcomes is achieved only through
goal orientation, careful manoeuvring and evaluation.
In addition to planning, leadership qualities are
paramount in achieving success in all disciplines of life,
whether cultural, social, political or economic.
Fostering collective, critical thinking and encouraging
debate at all levels is just as important. This creates
knowledge and opinions that can be leveraged in achieving
individual and national goals.
EDIT
2010
Such goal-setting approaches are also reflected within the
cultural landscape, a rich tapestry that is unfolding further
across the region.
The environment is also inextricably tied to global
survival and success, with the new Saudi Arabia leading
regional progress in enhancing the environmental agenda at
all levels, from individual through to corporate and political.
Only through leveraging each of the above concepts,
combining thought and action, can we stand atop the
winners podium and continue the perpetual drive for
success.
Catherine Belbin, Group Editor
THINK@motivate.ae
CORBIS
A cancer cell
011
 LEADING
THE WAY
WRITTEN BY LAURA COLLACOTT

From the memoirs of Britain’s

former Prime Minister to the
strong position of the Arab world
in the economic downturn, there
is plenty catching the eye across
the globe

013
SPECTRUM
Memoirs of a
Prime Minister
Since stepped down as Prime Minister
©UNESCO/ADA
of Great Britain, Tony Blair has turned
his hand to many things, including being
Middle East Peace Envoy. He has now
penned his book, A Journey, which
describes his life as a political leader.
In it, you can read first-hand about the
difficult decisions it takes to run Britain
domestically and internationally; the
highs, the lows; the conflicts, the peace
negotiations; the reforms and the internal
struggles. Blair seeks to illuminate behind-
the-scenes political life, draw out lessons
on leadership in difficult, challenging
times and project his opinions on the
shape of the new world order to come.
Community
conscience
In an effort to instil a sense of social
responsibility among business people
in Saudi Arabia, The Red Crescent is
working to establish Friends of the Red
Crescent committees at all chambers
of commerce and industry across the
Kingdom.
The policy aims to exchange ideas that
will help to promote humanitarian and
philanthropic activities with the support
of business people. Committees will be
charged with arranging appropriate
ways of collecting donations, holding
activities and hosting relevant
programmes.
014
CULTURAL UNDERSTANDING
UNESCO and Saudi Arabia have together
launched the King Abdullah Programme, an
international initiative to promote a culture of
dialogue and peace.
To mark the occasion, representatives from
UNESCO and The Kingdom officially opened
a pertinent cultural exhibition that displays 23
paintings by top artists from around the world,
Twenty Windows on the World.
EMERGING WEALTH
EMERGING markets are poised to be worth
US$80trillion in two decades, more than five
times what they are worth today, according to
research by Goldman Sachs.
China is set to become the world’s largest stock
market, thanks to fast economic expansion and
a growing capital market. A report by the IMF
anticipates that emerging economies will expand
6.4 per cent in 2011, compared to just 2.4 per
cent in developed countries.
Timothy Moe, the report’s author, estimates
that institutional investors will buy US$4trillion
in equities to raise their stake in emerging
markets from six per cent to 18 per cent.
“Saudi Arabia wanted to tackle all problems
through dialogue that deepens the common
values of nations and cultures,” says Prince
Faisal Abdullah, Education Minister.
He stressed the importance of finding
a solution to the Palestinian problem and
of promoting world peace through the
encouragement of peaceful coexistence
between faiths and cultures.
INSURING SAUDI
THE Saudi insurance sector is ripe for mergers
and acquisitions, according to Ali Al-Subaihin,
CEO of Tawuniya. He said authorities are keen
to develop the employment market for the
growing population and reduce dependency
on oil, having licensed 30 new insurance firms
dealing largely in health and motor insurance,
which is not currently compulsory.
Few of these companies have been able
to gather the scale necessary to become
profitable, leading analysts to believe that
mergers and acquisitions will be required.
“Consolidation is bound to happen, if it
JOBS IN CRISIS
THE International Monetary Fund (IMF) is
warning that the United States and Europe face
the worst job crisis since the 1930s. The labour
market is in dire straits. “The recession has left
behind a wasteland of unemployment,” says
IMF chief Dominique Strauss-Kahn, stressing
that joblessness could cause an explosion of
unrest and destabilise democracies.
According to a joint IMF-ILO (International
Labour Organisation) report, 30 million jobs
have been lost since the downturn; the majority
in richer economies, and 210 million people are
now without work. Compounding the problem,
and its resolution, the experts anticipate that
growth, when it rebounds, will be less labour
intensive and require fewer workers. Globally,
industry needs to create 45 millions jobs a year
to just tread water.
The leaders of the ILO and IMF are calling
upon governments to commit to policies
that focus on job creation and effective social
dialogue, mitigating the threat of unrest.
“Tackling the jobs crisis is not only critical for
a meaningful global economic recovery, but also
for social cohesion and peace,” Strauss-Kahn
adds.
does not happen this year, it will happen next
year or the year after. The catalyst would be
for the regulator to intervene and suggest that
some firms merge or for some firms to seek
the regulator’s approval to merge,” says Ali Al-
Subaihin, speaking at theReuters Middle East
Investment Summit.
“The sector is ripe for consolidation. It does
not look like the regulator will license more
insurance firms. For us, we will consider any
viable opportunity, the only problem is that we
have yet to find the right opportunity.”
LIFE BLOOD
SAUDI Arabia is to build the world’s largest
desalination plant having signed a deal with
Doosan Heavy Industries & Construction for
a US$1.46billion facility in Ras Az Zawr. It will
have a capacity of 228 MIGD (Million Imperial
Gallons per Day), enough to supply 15,000
people, and use the combined processes of
Multi-Stage Flashing and Reverse Osmosis.
Water is a heavily pressurised resource in
the region and demand grows as quickly as
desalination plants can be built. Kuwait was Money matters
the first country to build a desalination facility A recent customer poll into the Best
in the 1960s and today more than 50 per cent Domestic Cash Management Bank
of all desalination occurs in the Middle East, voted the Saudi British Bank (SABB) as
with 24 per cent in Saudi Arabia. top in the field. The survey, conducted
In addition, the country has signed contracts by Euromoney, was based on feedback
for the construction of a freshwater pumping from cash managers, treasurers and
station to deliver water between Taif and Baha. financial officers worldwide who were
The deal is worth US$283million and when asked to rate the services provided by
complete will supply 80,000 cubic metres of their lead cash management bank. It is
desalinated water daily from the plants in the third year running that the bank has
Shuaiba and Shaqeeq to four additional cities. walked away with the award.
“This award clearly demonstrates that

RISING CONFIDENCE our approach to cash management is

CONFIDENCE in the Saudi Arabian domestic
market has improved, supporting recovery,
according to a recent survey by Banque Saudi
Fransi. Business leaders are beginning to take
more investment risks for higher returns, while
consumers are returning to the shops. Executives
are still proceeding warily, but more are prepared
to take bullish moves.
The Eurozone debt crisis affected sentiment
in the third quarter, but businesses have
mitigated this by planning increased
production capacity and new staff hires.
Of course, a higher oil price also underpins
confidence, as do perceptions of improved real
estate prices and better share performance.
being well received in the Kingdom.
We are committed to delivering top
SAUDI HOSTS GLOBAL FORUM quality service and are focused on
creating tailor-made solutions based
LEADERS from international business and politics will gather in Riyadh, Saudi Arabia for the on our customers’ needs,” says David
2011 Global Competitiveness Forum (GCF), held from 22 to 25 January. Dew, managing director of SABB. “This
Entering its fifth year, the GCF is an annual meeting of top business executives, international technical strength, combined with our
political leaders, selected intellectuals and academics who share an interest in global extensive foot print in the Kingdom and
competitiveness. Paul Hawken, internationally acclaimed environmentalist, businessman and our global reach has positioned SABB as
author, is among the confirmed keynote speakers at this year’s event, which features a cast of one of the strongest cash management
global leaders from business and politics. banks in Saudi Arabia.”
The program is designed to create a discussion platform for various international stakeholders
on a broad range of topics. Innovation is the theme of the 2011 GCF, with each annual forum
crafted around a central focus. Combating fraud
Delegates from past events include Tony Blair, former British Prime Minister, James Dr Abdulaziz Al-Khwaiter of the Finance
Wolfensohn, 9th President of the World Bank and Michael Dell, Founder and CEO, Dell Inc. Ministry spoke at the Consumer Protection
To learn more about the GCF, agenda or speakers you can visit www.gcf.org.sa from Fraud and Counterfeiting forum

INFLATION DIPS to stress that commercial fraud and

INFLATION in Saudi Arabia has eased from an
18-month peak of 6.1 per cent to 5.9 per cent. This
is the highest among the Gulf crude producers.
The governor of the Saudi Arabian Monetary
Agency (SAMA), Muhammad Al-Jasser, says
the rises are a result of increased global food
prices and believes monetary measures are
powerless to curb rising inflation.
Experts believe the inflationary pressures are
difficult to manage in the short-term as they
are influenced by global trends and only rental
inflation can be pragmatically challenged
with structural fixes and the building of more
housing units.
HIGH ENERGY
THE Council of Ministers in Saudi Arabia
has underlined its support for efforts to
ensure energy security. Chairing the Cabinet
meeting, King Abdullah spoke about
recent communications to develop good
working relations with the Syrian President
Bashar Assad; Iranian President Mahmoud
Ahmedinejad; and Egyptian President Hosni
Mubarak.
There are also calls in the Cabinet to
strengthen the Arab League co-operation in
order for the organisation to play an effective
role at regional and international levels.
“Every Arab country should comply with
reforms and agreed upon resolutions and show
a high degree of credibility and seriousness
in implementing resolutions,” a Cabinet
statement said.
The Cabinet urged the international
community to extend all-out support to
Pakistan to help the country recover from the
recent floods that killed hundreds of people
and rendered thousands more homeless. It also
agreed to sign MOUs with Lebanon, Vietnam
and South Korea to improve youth welfare,
agriculture and water respectively.
counterfeiting are issues that have
negatively affected consumers and the
wider public. He says that the government,
in conjunction with the private sector,
has taken a collective stand to eradicate
commercial fraud and counterfeiting.
The First Arab Forum for Consumer
Protection from Fraud and Counterfeiting
has brought in new recommendations
for Saudi Customs to limit the supply of
fake products, which have so far been
effective. They have cleared the country’s
name from the strict regular watch list,
particularly in relation to the protection of
intellectual property rights.

015
SPECTRUM
OPEC’s half-
century
In September, OPEC, the organisation
representing the countries that claim three-
quarters of the world’s proven reserves,
marked its 50th anniversary.
The organisation played a key role
in restoring the price of US$70-80 per
barrel – the range it feels is appropriate
for consumers and producers – during
the latest recession. Senior officials in
Libya, however, have claimed that this
figure should rise to US$100 per barrel
because the rising cost of imports has
eroded members’ income: wheat prices
have risen by over 50 per cent as a
result of the Russian drought, a market
that Libya buys heavily from.
Acting as the industry’s only regulator,
OPEC has the power to influence price
and supply and is set to have a more
critical role going forward as world
demand increases and supplies become
more limited. Although non-OPEC
production is forecast to grow, over
the longer-term, forecasters believe that
OPEC’s market share will increase thanks
to ongoing exploration.
Cancer research
AstraZeneca and Cancer Research UK
have taken a new drug into clinical trial
that could revolutionise the treatment of
cancer.
AZD-3965 blocks cells’ ability to
generate energy and therefore survive –
AstraZeneca’s development department
are to see if this can be of benefit to
cancer treatment. At the end of the trial
the pharmaceutical giant has the option
to develop the drug further or surrender
the rights to Cancer Research Technology
to secure a different partner, maximising
the chance of the drug reaching patients.
016
SOFITEL
LUXURY HITS
KSA EASTERN
PROVINCE
THE Sofitel Al Khobar The Corniche, the
latest luxury hotel to open in the popular
Eastern Province of Saudi Arabia, has opened
in Al Khobar, an important regional economic
centre reputed for its luxurious malls,
pedestrian streets, and numerous cafés and
restaurants.
“Consistent with the Sofitel luxury brand’s
image and positioning, we are confident that
Sofitel Al Khobar The Corniche will be the
landmark property for the Sofitel brand in the
Kingdom of Saudi Arabia and will complement
our other properties of the region,” said Sami
Nasser, Sofitel Vice President, Middle East,
Africa and Indian Ocean.
Located on Saudi Arabia’s east coast, the
elegant hotel looks out over the Arabian Gulf
and offers views over both the city and the
sea. The hotel’s interiors were created by, WA
International, imbibed with the spirit of the
Orient, whilst the powerful silhouette of the
building dominates the coastline.
Sofitel Al Khobar The Corniche joins other
Sofitel hotel properties due to open in Bahrain,
Egypt and Mauritius in 2011.
TOURISM BUILDING
TOWARDS SUCCESS
DRIVE SAUDI Arabia awarded US$6.5billion worth of
IN order to tap into a niche market of construction contracts in the second quarter of
conservative tourism, the Saudi Commission 2010, almost double the value of contracts in the
for Tourism and Antiquities is launching first quarter and a trend likely to continue.
a programme called “Umra Plus”. This will Most spending has been in the sectors of
encourage pilgrims to extend their stay in the energy and residential real estate, and the sector
Kingdom and visit previously inaccessible sites has been boosted by massive government
such as the ancient Nabatean city in Madaen spending on infrastructure as well as stated
Saleh and the remains of the famous railway government priorities that have spurred a
linking the Levant with the holy city of Mecca. US$344million in maintenance and operations number of mega-projects.
In an effort to enhance the quality of contracts to keep the country’s airports clean, The construction sector in the country is
the tourism provision in the country, the landscaped and operational. forecast to grow by 6.4 per cent in 2010 and will
commission has proposed that Saudis working All initiatives form part of an overall strategy contribute 10.4 per cent to GDP. Employment by
in the sector are sent abroad for familiarisation to increase tourism receipts and boost the construction companies accounts for a staggering
and training to improve service standards as sector’s contribution to non-oil GDP to 11 per 40.4 per cent of the workforce. It is growing at a
they disseminate their learning on their return. cent over the next two decades. It currently faster pace than the hydrocarbon sector, which is
The government has handed out brings 6.5 per cent of the non-oil GDP. expected to grow by 4.4 per cent this year.
GENESIS DESIGN BY RADO

r 5.5 AUTOMATIC / HIGH-TECH CERAMICS / WWW.RADO.COM


PICTURE PERFECT
AS THE INTEREST AND DEMAND FOR PHOTOGRAPHY
CONTINUES TO INCREASE, THE VALUE OF VINTAGE AND
CONTEMPORARY WORKS IS RISING.
WRITTEN BY DOROTHY WALDMAN
WORKS by Robert Frank, Richard
Avedon, Irving Penn and Ansel
Adams were among the most sought
after pieces at the recent auction of
outstanding photographs held on
October 8 by Phillips de Pury &
Company in New York.
Estimated to yield between
US$100,000 and US$150,000, Robert
Sotheby’s New Franks’ 1955 Trolley - New Orleans is
York undoubtedly one of the pillars of classic
Photographs American photography and it sold
from The for US$158,5000. Richard Avedon’s
Polaroid Brigitte Bardot, Hair by Alexandre, Paris
Collection Studio from 1959 is among his most
 Ansel Adams celebrated and rare portraits and was
Canyon de estimated to bring a sum in the same
Chelle National range as Trolley, but actually sold for
Monument, US$170,000.
Arizona Pablo Picasso a la Californie, Cannes,
shot by Irving Penn in 1957, embodies
the majestic essence of the Spanish
artist as well as the timeless elegance of
the renowned photographer. It sold for
US$182,500, considerably more than
the estimated US$80,000-US$120,000
predicted prior to the sale. His 1951
photograph Chef made an impressive
showing, bringing US$134,500, four
times its predicted selling price of
between US$30-40, 000.
Other photographic masterpieces
included in this unprecedented sale
that included Robert Mapplethorpe’s
Calla Lily from 1986 which went for
US$74,500, a number of works by
Ansel Adams, as well as the more recent
Paradise 23 Sao Francisco de avier,
Brasil, Thomas Struth’s 2001 work that
was estimated at US$60,000-80,000,
but actually went for US$86,500 while
Marilyn Minter’s Swarve from 2005,
sold at the middle of its estimated range
at US$31,250.
A summer sale at Sotheby’s of
Photographs from the Polaroid
Collection exceeded the expectations for
the entire sale after just the first night.
A new record was set for Adams with
his iconic mural-sized prints, which
achieved the top five prices of the first
night’s sales. Clearing Winter Storm,
Yosemite National Park, from 1942 sold
for US$722,500, well above its high
estimate of US$500,000.
The high prices being paid for
photography are an indication of the
resilience of the market, according
to Vanessa Kramer, director of
photographs at Phillips de Pury. Unlike
ART+CULTURE
other art forms, photography requires
the artist to actually be in the presence
of the subject, determining what is
to be photographed and what is to be
excluded, how and what angle to frame
the photo at and exactly which moment
to grasp, all of which are highly
subjective.
Photography has found an avid
new following in a generation that is
intrigued by the fusing of science and
art to interpret reality by freezing time,
capturing an instant that can then be
manipulated to expand the limits of
creativity and the perception of reality.
Throughout the world, photography
and photography exhibitions are
increasing in importance and
popularity, as illustrated by the number
and range of exhibits on offer.
019
ART+CULTURE
Parcours de Travali Maison
Europenne de la Photographie,
Paris
Karl Lagerfeld, the renowned France-
based German fashion designer, offers
some impressive surprises in his
innovative, experimental photographic
work. If the exhibit merely featured
his work in fashion, it would still be
worth seeing, but this proves to be so
much more than that with intriguing
portraits, landscapes and architecture.
His work ranges from silkscreen
cityscapes to Lichtenstein-inspired Pop-
like pictures to a neon-encircled self-
portrait in his The Beauty of Violence
series, which features Italian model
Baptiste Giabiconi. Until October 31.
Brasilia, 1500 Gallery, New York
Celebrating a half century of Brasilia,
the purpose planned and built
capital in the centre of Brazil, the
1500 Gallery in New York, which
specialises in Brazilian photography
and photographers, is displaying
vintage photographs of the city.
Curated by Murillo Meirells, the images
capture the planning, construction
and inauguration of the capital city
during the late 1950s. The architectural,
figurative and photojournalistic images
in the Brasilia exhibition highlight the
idealism of the socialist government
and its team of visionary urban
planners, architects and landscape
designers, including Lucio Costa, Oscar
Niemeyer and Roberto Burle Marx.
Until November 27.
Heinrich Kuhn, Musée de
l’Orangerie, Jardin des Tuileries,
Paris
Pictorialism, an international
photographic movement around the
beginning of the 20th century that
was closely linked to Alfred Stieglitz
and Edward Steichen, strove to create
photographic images that rivalled the
artistic merits of painting. Heinrich
Kuhn, one of its central figures,
was known for his experiments
with printing techniques such as
gum bichromate. Work like this is
included in the exhibition, as well
as his progression from Romantic
Impressionism to a less detailed,
almost abstract style that emphasised
the study of light, emphasising the
020
tonal values that were reflected in the
development of the Vienna Secession.
He is considered the master of the
autochrome, a technique with rich,
delicate colours.
From October 2 to January 23, 2011
Facing East, Davidson College,
United States
The works of three US-based artists
of Middle Eastern descent look at the
concepts of identity and “otherness’
in a multimedia exhibition that
examines traditional structures and the
contemporary visual culture.
From October 14 to December 8.
Changing Views: 100 years after
the Exhibition Masterpieces of
Muhammadan Art in Munich, Haus
der Kunst, Munich
The Future of Tradition – The Tradition
of Future will mark the centennial of the
02
01
HIGHEST
PRICES
PAID FOR
PHOTOGRAPHS
1. 99 Cent II Diptychon (2001),
Andreas Gursky
(Three prints of the same photograph)
US$3,346,456, February 2007;
US$2,480,000, November 2006;
US$2,250,000, May 2006
2. The Pond-Moonlight (1904),
Edward Steichen
US$2,928,000, February 2006
largest exhibition of art from Islamic
culture. The celebration will also include 3. Kremlin of Tobolsk (2009),
several exhibitions, lectures and cultural Dmitry Medvedev
programmes, including installations US$1,750,000, January 2010
from the original 1910 exhibition (which
featured more than 3,600 pieces and 4. Nude (1925), Edward Weston
set new standards for the research and US$1,609,000, April 2008
reception of art from Muslim countries)
as well as contemporary art, design, 5. Georgia O’Keeffe Hands (1919),
photography, architecture and fashion, Alfred Stieglitz
with displays designed by innovative US$1,470,000, February 2006
Egyptian architect Samir el Kordy.
Until January 9, 2011. 6. Georgia O’Keeffe Nude (1919),
Alfred Stieglit,
A Sense of Being, Saudi Pavilion at US$1,360,000, February 2006
Shanghai World Expo 2010
More than 130 contemporary works of 7. Untitled (Cowboy) (1989),
art created by 23 Saudi contemporary Richard Prince
artists express a sense of being through US$1,248,000, November 2005
faith and respond to global and local
issues. The exhibition, under the 8. Nautilus (1927), Edward Weston
auspices of the King Abdulaziz Center US$1,082,500, April 2010
for World Culture at Saudi Aramco,
includes photography, calligraphy, 9. Athènes Temple de Jupiter olympien pris
poetry, paintings, sculptures, de l’est (1842),
animations, videos, and installations. Joseph-Philibert Girault de Prangey
Until October 31. US$922,488, 2003
Photography Through the Eyes of 10. The Great Wave Sete (1857),
Saudi Arabian Women Gustave Le Gray
A recently released book, Photography US$838,000, 1999 01 New
Through the Eyes of Saudi Arabian Installation of
Women, by Saudi Arabian 11. Joueur d’Orgue (1898-1899), the Modern Art
photographer Rania Abdel Razek, a Eugène Atget Galleries
photography teacher at Dar Al-Hekma US$686,500, 2010 Museum
College, features a collection of images Associates/
by Saudi female photographers. It 12. Andy Warhol (1987), LACMA
spawned an exhibition focusing on the Robert Mapplethorpe, 02 Red
artists’ perspectives. US$643,200, 2006 OverLook, 2009
ART+CULTURE
SHOOT LOCALLY, SHOW GLOBALLY
SAUDI ARABIAN PHOTOGRAPHERS HAVE BEEN
INVITED TO PARTICIPATE IN A THINK PHOTOGRAPHIC
COMPETITION BY SUBMITTING A RANGE OF
PHOTOGRAPHS THAT HIGHLIGHT THE DIVERSITY
OF THEIR COUNTRY.
WRITTEN BY DOROTHY WALDMAN
TODAY’S Saudi Arabia is rapidly
transforming itself into one of the
most competitive economies in the
world and it is becoming one of the
most lucrative markets for strategic
investment. Saudi Arabia is also
home to creative, talented people who
are proud of their country’s culture,
progress and aims for the future.
To communicate the new Saudi
Arabia to the world, THINK is
sponsoring the National Photographic
Competition 2010. All photographers
in Saudi Arabia – amateur or
professional, young or old, regardless of
gender – have been invited to capture
their vision of the Kingdom of today to
communicate the theme of Think Saudi
Arabia: Capturing Advancement in
Design, Economy and Society.
Appreciating the reality that art
reflects the essence of the culture and
the people that created it, THINK has
selected photography as the medium
for this competition to communicate
the wonders of contemporary Saudi.
According to Michal Stecklw, one
of the international jury of respected
022
visual arts and media experts who will
judge the submissions: “Photography
is one of the most effective ways
of reaching out to an international
audience with a story or projected
image. It transcends linguistic,
religious and political barriers. It serves
as a point of connection between a
photographer and his audience across
various cultural codes.”
Photographers submitted up to five
entries, in up to three of the seven
categories that reflect different aspects
of the new Saudi Arabia. The categories
were selected to allow for a three
dimensional view of the Kingdom.
However, in addition to reflecting their
country, the photographers will also
provide insights into their own values
and their approach to their art, providing
an even deeper look into the essence
and creativity of those who live, and are
therefore products of, what is to much of
the world the Saudi Arabian mystique.
Some may view their art much as HRH
Reem Al Faisal, a photographer who is
also a judge. “I like to define myself as
a Muslim artist, sprung from my native
Saudi culture and history. For me, light is
one of the many manifestations of God.
Every photograph is a pattern of light and
shade. For me, my photography is a way
to praise God’s glory in the universe,”
she says.
The tenets of good photography will
also be at the forefront of the judging.
Rachel Hotchkiss, the creative director
of Image Source, another judge, adds:
“When considering the question, what
makes a good image, I always respond –
an image that is personally unique and
carries an individual thought, opinion
or idea, but communicates globally.”
Art, especially photography, has
the power to stir emotions with the
capturing of a single instant in time
and to facilitate change, which is one
of the challenges of this competition.
“In an ever changing world, creative
professionals face the challenge to
express through their work the thoughts
of society. This is a vital task that
sometimes is overwhelmed by business
demands and the wrong idea that
extraordinary cannot be found in the
ordinary moments of life,” says Daniel
Bernado, one of the panel of judges.
In addition to encouraging great
photography, this competition also
challenges the artists to do much
more – to change perceptions. “As a
media professional, it’s exciting to be
part of something that can change the
perceptions and expand the concept
of art as a tool to improve the world
we live in, bringing to life the essential
creative thought,” Bernardo says.
All entries must were submitted by
October 31 for judging and the winners
will be announced online at a later date,
with cash prizes awarded to those who
come first and second. Additionally,
the winning photographs will appear
in future issues of THINK and all high
quality photographs will be shown in a
special exhibition.
SPONSORS
The competition is sponsored by
Toyota Land Cruiser, Abdullatif Jameel,
celebrating the 60th anniversary of
production of the first 4x4 cars in
Saudi Arabia; Al-Watan Newspaper,
is the media partner, and is known

CATEGORIES
Individuals may submit in up to three of
the following categories.
Design & Architecture Buildings,
sculpture or even architectural details
viewed from different angles and
perspectives, perhaps contrasting the
contemporary and historic, or focusing
on the beauty of geometry or exquisite
“SAGIA BELIEVES THAT brickwork, offer talented artists rich and
ART IS A REFLECTION diverse possibilities to capture Saudi
OF CREATIVITY AND Arabia in fresh, creative ways.
INNOVATION. IT IS
MOST IMPORTANTLY A
UNIVERSAL LANGUAGE, Identity Visually explore the questions,
A BRIDGE BETWEEN “Who am I?” “Where do I come from?”
COUNTRIES, CULTURES and “Where do I belong?” to facilitate
AND PEOPLE. THINK an understanding of the Saudi Arabian
MAGAZINE, AS A NEW culture in the international arena.
VOICE OF SAUDI ARABIA
HEARD BY GLOBAL Development Underscoring the new
BUSINESS AND THOUGHT competitive Saudi Arabia, this category
LEADERS, IS PROUD focuses on advancements in such areas
TO COMMUNICATE as education, healthcare, infrastructure,
THE KINGDOM’S
industry, science and the economy.
DEVELOPMENT AND
TRANSFORMATION
THAT UNVEILS Culture & Society Images of people
EXCEPTIONAL BUSINESS and events, those that tell a story in that
OPPORTUNITIES. one instant, even without words, are
AND THERE IS NO the theme of this category. Think of the
BETTER MEANS OF photo accompanying a news story about
COMMUNICATION THAN a celebrity or important event that says
THE ART CAPTURED BY more than the words. Submissions may
THE LENSES OF SAUDI’S be in either colour or black and white.
TALENTED PEOPLE”.
FAHD M. HAMIDDADIN
GENERAL DIRECTOR OF MARKETING
Natural Beauty Be it sand dunes
AND COMMUNICATION, SAGIA that stretch past the horizon or a single
blossom, the scale and possibilities of
for supporting Saudi youth and the photography of nature in the unique
feel strongly about the patriotic regions of the Kingdom is almost endless.
implications the competition brings.
Meanwhile sponsor Bravo, sees THINK Documentary Record an actual event,
magazine as an ideal way to reach its not altered by the camera or technology,
CEO class readership. The exhibition to accurately document a person, place,
design is sponsored by Focal Design. issue or significant historical event at
a particular moment in time. The event
DATES should have taken place between 2009
The exhibition of entrant’s work will be and 2010.
held in Jeddah at the Ana Special Mall
on the November 17 and in Riyadh at Advertising/Commercial Create an
the end of November, where the winning image designed to sell a product, idea
photographs and approximately 50 of or brand. Whether fashion, retail, music,
the best participating photos will be design or other, use an avant-garde or
displayed. traditional approach, but be creative and
objective. Special effects and equipment
Submissions can be viewed at: are permitted in this category.
www.thinksaudiarabia.com
JURY
Michal J Steckiw
Jury panel moderator & consultant,
projects manager
Michak Steckiw founded MJS Creative
and works with the creative industry and
international design bodies in Canada,
United Kingdom and Poland. He also
is involved in Design Weeks in Qatar,
Australia, Cuba, Italy and Spain and the
World Design Congress in Beijing. He is
also a photographer.
Daniel Bernardo
Lead designer and creative director,
InSkin Media
Daniel Bernardo is co-founder and chief
designer of Lodren Studio, an independent
experimental design house in Brazil, and
has a cultural and artistic background that
includes social and environmental design,
art direction, anthropology/sociology and
history of art.
Iva Babaja
Designer and Photographer, Vice-President,
Icograda/International Design Alliance
Babaja is currently creative director at Euro
RSCG agency in Zagreb and founder and
president of the Association for Promotion
of Visual Culture and Communications
(VIZUM). She has worked extensively with
various international art organisations.
HRH Princess Reem Al Faisal
Photographer
Born in Jeddah, Saudi Arabia, she studied
Arabic Literature at King Abdul Aziz
University in Jeddah and photography at
Speos School in Paris.
Rachel Hotchkiss
Creative director, Image Source
Rachel Hotchkiss leads the team responsible
for the creation of both photographic images
and motion clips and sets the creative
strategy. Her role is to conceptualise,
visualise, conceive and produce
contemporary creative products.
Andrea Springer
Programme director, World Design Capital 
Andrea Springer currently works for the
International Council of Societies of Industrial
Design – an initiative that seeks to showcase
cities that have leveraged design as a tool
to improve social, cultural and economic
development.
Adam Scholes
Global creative Director, JWT  
An unconventional artistic talent who has
worked in music, videos and print, Adam
Scholes has won numerous awards in a
variety of media, including a Silver Lion at
Cannes and a D & AD Pencil and Poster of
the Year.
PRIZES
First Prize: US$15,000
Second Prize: US$8,000
Best in category: Awarded to the
best in each of the seven categories:
US$1,000 (3,750 SR)
Winning photographs will be published
in THINK magazine. All high-quality
photographs will be showcased in a
special exhibition.
023
024

THE FRUITS OF
IMAGINATION
AMONG THE WINNERS AT MICROSOFT’S ANNUAL IMAGINE CUP
COMPETITION WAS A SAUDI ARABIAN TEAM, LED BY AL-MUHANNAD AL-
KADAM,WHO CREATED A FILM ABOUT CONQUERING WORLD HUNGER THAT
WON SECOND PLACE IN DIGITAL CATEGORY. WRITTEN BY DOROTHY WALDMAN
IMAGINE a world without hunger,
imagine a world where resources are
used wisely and people voluntarily
help others, then imagine how you
can be the catalyst to bring about
these changes. These were among
the challenges students tackled in
Microsoft’s annual Imagine Cup
competition in 2010, where young
people were challenged to use the
power of their imaginations and
technology to create a powerful visual
message that can help change the world.
More than 325,000 high school,
college and university students from
113 countries participated in the
competition. The winners in the 11
categories were celebrated at an awards
ceremony in Warsaw, Poland, where the
First Lady of the United States Michelle
Obama relayed via video a message
that summarised the purpose of the
challenge.
“The ideas you are generating and
the ways you are turning those ideas
into action and into real solutions for
real problems is truly remarkable,”
she said. “Through your ingenuity,
you are literally changing the world.
You are giving birth to new ways of
thinking, new ways of doing and new
ways of learning. And isn’t that what
imagination is all about?”  What was your inspiration for the
Let Us Eat Together, developed by
Dreaming Spirits, a team of students
from Saudi Arabia led by Al-Muhannad
Al-Kadam, was awarded second
place in the Digital Media category,
the first win by a Saudi team. The
short film looks at world hunger and
presents a solution that anyone who
can afford food can participate in to
help the less fortunate. Using graphics,
special effects and clever computer
manipulations, the team created an
entertaining, educational film that can
be viewed at http://www.youtube.com/
watch?v=Q8A-FfiVeuU
Al-Kadam, who is also an
accomplished photographer, is a
student in the architectural department
at the King Fahd University of
Petroleum & Minerals. In an exclusive
interview, he told THINK about
his experience working as part of
Dreaming Spirits.
name Dreaming Spirits and for
your film?
The most important relationship that
connects us, before nationality, colour
and language, is the human spirit.
Spirit is found in all of us, despite our
differences. It is the one aspect that
doesn’t change There should be some
humanity and love in human spirit
This amount of love differs from one
to another, yet our spirits dream of
solving all problems of all spirits in the
world, no matter what the problem is
or what spirit it is, thus, our spirits are
dreaming.
Which came first, the story or the
graphic possibilities?
The idea of using graphics was there
from the beginning. We agreed to put
the work together in this way, using
motion graphics to present the facts
and figures. The scenario was written
based on available graphics possibilities.
What were some problems you
encountered and how did you
solve them?
There were no severe problems –
Alhamdulillah – maybe resources
shortage, since we are students, were
annoying. But, with Allah’s Blessing we
could use the simplest resources to get
ART+CULTURE
a work of this level. Utilising our simple
expertise and limited resources to get
the best out of what we can do. For
example, we were having trouble with
sound during video capture due to the
fact that we don’t have a sound system.
We were forced after that to record
the whole voice in one shot in one of
the studios and then merge it with the
video. We also used normal lighting,
not cinematic lighting, because it is
very expensive.
What was it like to represent
Saudi Arabia in Poland?
It was really a great feeling to represent
my country. The wonderful thing is that
my representation ended up winning
in a field that nobody else has won
before me in a worldwide competition.
It is an outstanding feeling to receive
congratulations from all our Arab
colleagues. Their congratulations were
always: “You are a pride for Arabs.
You raise our heads your victory is our
victory.” This is one of the amazing
expressions that still resonates in my
mind and heart.
What’s next?
I have launched my next movie, Obama
Free Homaidan, which appeals to US
President Barack Obama to use his
constitutional power of presidential
pardon to set free a Saudi man jailed for
sexual assault. I am aiming in the movie
to influence US public opinion and reach
Obama with the hope that he would use
his powers to pardon Al-Turki.
025
THINK 10X10

THE
THE KINGDOM’S PERFORMANCE IN KEY
INVESTMENT, ECONOMIC AND EASE OF DOING
BUSINESS REPORTS CONTINUES TO IMPROVE, BUT
THE COUNTRY’S AMBITIOUS PLANS FOR THE FUTURE

POWER
SHOW THAT IT IS NOT RESTING ON ITS LAURELS.

OF 10
WRITTEN BY JOANNE MOLINA

THE Saudi Arabian General Investment Authority (SAGIA) was

proud to announce the extraordinary success of its 10x10 programme,
achieved when the Kingdom was ranked 8th for Foreign Direct Investment
(FDI) by the United Nations Conference on Trade and Development
(UNCTAD) earlier this year. As THINK was going to press, Saudi Arabia
was also awaiting the outcome of the World Bank’s 2010 Doing Business
Report, which would further secure its position among the top 10 most
competitive business destinations in the world.
“Being in the top 10 means that, objectively speaking, at least according to
independent international ranking agencies such as the World Bank’s Ease
of Doing Business Report, Saudi Arabia is the most conducive environment
for business in the world. And if investment goes where it is most welcome,
which it does, then it means that investment will flow into Saudi Arabia,
which it has,” says His Excellency Governor Amr Al-Dabbagh.
“I imagine also that it could be seen to convey our ability to deliver on an
objective, which began five years ago when we launched our 10x10 initiative,
which was to become among the top 10 most competitive economies in the
world by 2010. And moreover, if it’s the case that countries that have high
rankings and/or have shown significant gains have done so by showing
consistently superior performance in key macro and microeconomic areas,
then we are one of those superior performing countries.”
Al-Dabbagh also acknowledges how numerous other vital
accomplishments have helped accelerate the Kingdom’s success. “The
Kingdom is also ranked by UNCTAD as the eighth largest attractor of
more competitive, we will become larger recipients of FDI. A competitive
investment environment attracts investment, which allows existing
companies to grow, which opens the doors for new companies to form,
and ultimately leads to job creation and sustainable economic growth.
Investment, simply stated, is the oxygen of any economy.”
The Kingdom’s new ranking definitively reflects the realisation of its
10x10 programme. Established less than half a decade ago in 2006, it was
launched by SAGIA to enact reforms and promote targeted investments
with the goal of creating an economically competitive environment and
positioning Saudi Arabia among the world’s top 10 most competitive
economies by 2010. It sought to target, meet and exceed the criteria of
internationally acclaimed agencies that evaluate countries’ performances
as globally competitive economic powers.
These rankings convey vital qualitative and quantitative messages about
the Saudi Arabian economic environment to the international business
community. “Messages are subjective, rankings are objective. We are the
best place to do business in the world according to objective reports. I
imagine, and it is our experience so far as indicated by the UNCTAD
report, that investors will act on the favourability of the climate and
investment will increase, which is the very point of creating a better
business climate,” Al-Dabbagh explains.
The initiatives stemming from 10x10 laid the foundation for Saudi
Arabia’s rapid and sustained economic success, which has dramatically
contrasted with the recent worldwide financial downturn. Foreign Direct
FAISAL ALMALKI

FDI in the world, which is a confirmation of the correlation between Investment into the Middle East sustained a six-year continuous increase,
competitiveness and FDI inflows,” he says. “Of course, as we become even growing to US$90 billion in 2008, a time when the rest of the world was

026
 “OUR NEXT GOAL IS ENCAPSULATED IN THREE NUMBERS,
X X

60, 24 AND 7. THE GOAL FOR OUR ECONOMIC CITIES IS

X X

THE ULTIMATE IN COMPETITIVE DESTINATIONS, BY PROVIDING

X X

ALL GOVERNMENT SERVICES IN 60 MINUTES, 24 HOURS

X X

X A DAY, 7 DAYS A WEEK.” X

HIS EXCELLENCY GOVERNOR AMR AL-DABBAGH

027
THINK 10X10

FDI STOCK BY SECTORS IN 2009 (TOTAL US$ 147.1 BILLION)

MAJOR PROJECTS AND COMPANIES / FOREIGN INVESTORS NATIONALITY

BANQUE SAUDI FRANSI France SAUDI HOLLANDI BANK Netherlands SAUDI ARAMCO MOBIL REFINERY CO., LTD. SAUDI ARAMCO LUBRICATING OIL REFINING
SABB (SAUDI BRITISH BANK) Netherlands BANK AL-JAZIRA Pakistan (SAMREF) USA CO. (LUBEREF) USA
ARAB NATIONAL BANK Jordan THE MEDITERRIANEAN & GULF INSURANCE & SAUDI ARAMCO SHELL REFINERY CO. (SASREF) ARAMCO-TOTAL REFINERY France
SAUDI INVESTMENT BANK USA, Japan REINSURANCE CO. MEDGULF Bahrain, Lebanon Netherlands SAUDI CHEVRON PHILEPS COMPANY USA

8.3%
3.1% 14.4%
RABIGH REFINING AND PETROCHEMICAL COMPANY Japan
SAUDI POLYMERS COMPANY USA
EASTERN PETROCHEMICAL CO. (SHARQ) Japan
ETIHAD ETISALAT CO. (MOBILY) UAE SAUDI METHANOL CO. (AL-RAZI) Japan
MOBILE TELECOMMUNICATIONS COMPANY SAUDI YANBU PETROCHEMICAL CO. (YANPET) USA
SAUDI ARABIA (ZAIN) Kuwait
ALCATEL-LUCENT FRANCE (BRANCH) France
10.9% SAUDI CHEVRON PHILEPS COMPANY USA
SAUDI PETROCHEMICAL CO. (SADAF) USA
GULF STEVECORING COMPANY LTD. Kuwait JUBAIL PETROCHEMICAL CO. (KEMYA) USA
SABIC TERMINAL SERVICES CO. (SABTANK) Netherlands SAUDI METHANOL COMPANY (AR-RAZI) Japan
SAUDI ETHYLENE & POLYETHYLENE COMPANY France
16.7% NATIONAL METHANOL CO. (IBN SINA) USA
AL-JUBAIL FERTILIZER COMPANY (AL-BAYRONI) Taiwan
5.3% SAUDI EUROPEAN PETROCHEMICAL COMPANY (IBN ZAHR)
Italy, Arab Countries
ARABIAN INDUSTRIAL FIBRES CO. (IBN RUSHD) Arab Countries

ARABIAN BEMCO CONTRACTING CO. LTD. Lebanon

AL-MABANI GEN. CONTRACTORS COMPANY LTD. Lebanon
MIDDLE EAST ENGINEERING & DEVELOPMENT CO. LTD. Korea
TECHNIP SAUDI ARABIA LTD. France 10.5% 7.7% AL SAFI DANON CO. LTD. France
ABB CONTRACTS CO., LTD. Swiss UNITED SUGAR COMPANY United Kingdom
JAN DE NUL SAUDI ARABIA CO. LTD. Belgium. MODERN PRODUCTS COMPANY Swiss
CONTRACTING AND TRADING CO. (CAT) Lebanon FUTURE PIPE INDUSTRIES L.L.C. Netherlands
JUBAIL ENERGY SERVICES COMPANY (JESCO) Italy
NATIONAL PIPE COMPANY LTD. Japan
12.2% 6.5% AL-SALAM AIRCRAFTS CO. LTD. USA

4.3%
SINO SAUDI GAS LIMITED China ARABIAN DRILLING COMPANY France
LUKSAR ENERGY LIMITED Russia SAUDI HALLIBURTON LOGGING CO. LTD. USA
ENIREPSA GAS LIMITED Italy, Spain DOWELL SCHLUMBERGER SAUDI ARABIAN
EMAAR -ECONOMIC CITY (KING ABDULLAH ECO. CITY) UAE SHAIBA WATER & ELECTRICITY CO. Malaysia RABIGH ARABIAN WATER & SOUTH RUB’ AL-KHALI COMPANY SRAK CO. LTD. USA
BAITEK REAL ESTATE CO. Kuwait JUBAIL WATER AND POWER CO. Bahrain ELECTRICITY CO. Japan France, Netherland STROYTRANSGAZ BRANCH
AMLAK INTERNATIONAL FOR REAL ESTAT DEVELOPMENT & FINANCE CO. / UAE JUBAIL ENERGY COMPANY USA TYHAMA POWER GENERATION CO. LTD. Bahrain SCHLUMBERGER MIDDLE EAST SA USA

REFINED PETROLEUM PRODUCTS ELECTRICITY, GAS AND WATER SUPPLY FINANCE SERVICES & INSURANCE
CHEMICAL & PETROCHEMICAL INDUSTRIES REAL ESTATE TRADE
OTHER INDUSTRIES CONTRACTING OTHER ACTIVITIES
MINING, OIL AND GAS TRANSPORT, STORAGE AND COMMUNICATIONS

028

01 Riyadh, Saudi Capital
02 Al Jubail industrial plant
01 02
suffering major losses due to the global recession. Saudi Arabia’s inflows
grew 57 per cent to US$38 billion, the largest amount in the region.
According to the 2010 World Investment Report published by UNCTAD,
Saudi Arabia succeeded in attracting further FDI investments during 2009,
led largely by investments in industry. Total FDI inflows amounted to
US$35.5 billion and although these inflows were lower by seven per cent
than the total FDI inflows attracted during 2008, they contributed to raising
the internal FDI stock value to US$147.1 billion by the end of year 2009.
Analysis of FDI into the Kingdom reveals that some of the world’s greatest
economic powers have looked to Saudi Arabia for investment. The sources
of the largest FDI inflows during 2009 were the United States, with an FDI
inflow amounting to US$5.8 billion, followed by Kuwait (US$4.3 billion), the
UAE (US$3.8 billion), France (US$2.6 billion) and Japan (US$2 billion).
The achievements of the 10x10 competitiveness agenda were possible
because the programme continuously benchmarked itself against three
internationally recognised measures: the World Bank/International
Finance Corporation Ease of Doing Business index, published in the
annual Doing Business report; The United Nations Conference on
Trade and Development’s measurement of FDI inflows into countries,
published in the World Investment Report; and The World Economic
Forum’s Global Business Competitiveness Index, published in the annual
Global Competitiveness Report.
The Doing Business report concentrates on aspects of the business
environment, such as procedures and regulations regarding starting
businesses, employing workers and enforcing contracts. The World
Investment Report ranks countries according to their performance in
attracting FDI inflows. The Global Competitiveness Report assesses the
longer-term effects of reform on broader themes of competitiveness.
The Kingdom’s success would not have been possible without
exceptional leadership. “The new World Bank assessment is evidence
of great leadership in the Kingdom, especially by His Majesty, King
Abdullah bin Abdulaziz, the Custodian of the Two Holy Mosques, who is
the chief architect behind the vision,” Al-Dabbagh says.
And it is under the leadership of Al-Dabbagh that SAGIA has brought
competitiveness to the top of the national agenda with the 10x10 initiative,
which has become a model programme for economic competitiveness
and investment.
IN ADDITION, striving to meet and exceed the recommendations
and criteria of these three external measures of evaluation, SAGIA infused
the private sector with the spirit of competition by launching strategic
internal domestic initiatives, such as the Saudi Fast Growth 100 initiative.
This national programme promotes entrepreneurship and innovation by
recognising Saudi Arabian businesses with the fastest revenue growth
over a five-year period.
Another internal device to measure and create a competitive
environment for economic growth is the Saudi Arabian Responsible
Competitiveness Index (SARCI). This multi-year initiative assesses
the strength of participating organisations’ strategies, management,
engagement processes and performance systems as well as ranking the
most socially responsible companies in Saudi Arabia.
Organisations with exceptional SARCI results receive recognition in
the form of the King Khalid Responsible Competitiveness Award, given
to the top three most socially responsible companies on the SARCI. In
2010, three outstanding companies – National Commercial Bank, Al
Fanar Company and Zamil Industrial – were presented with King Khalid
Awards for Responsible Competitiveness to mark their achievements as
responsible business leaders.
The winning companies earned recognition for their ambitious,
balanced and responsible business programmes, which combine
029
JOSEPH POON
THINK 10X10

01 02

leadership with effective management systems. SARCI measured the A remarkable history of public partnership and internationally 01 Kingdom Centre, Riyadh
companies against primary drivers of responsible competitiveness: the recognised accomplishments, in conjunction with an unwavering 02 Irrigation at Al Jubail Industrial
state of health and safety, employee benefits, charitable giving, resource dedication to reform, made this rapid advancement in the Kingdom’s City
efficiency, product innovation, consumer education and responsible international rankings possible. In 2009, Saudi Arabia became one of the
lobbying. The National Commercial Bank was recognised for being top 20 most competitive countries for protecting investors. It strengthened
the first Saudi Arabian business to produce a world-class sustainability investors’ legal rights during the past year by clarifying specific protections TOP 20 COUNTRIES FOR
report, Zamil Industrial was noted for its environmental management afforded by the Companies Act, part of the Regulation for Companies. FDI INFLOWS
programme and Al Fanar was praised for its commitment to reducing Saudi Arabia has demonstrated through its commitment to reform and
counterfeiting and its focus on customer satisfaction. investors’ security that there has never been a better time to invest in one COUNTRY 2009 RANK FDI INFLOWS (US$ BN)
U.S. 1 130
The Saudi Oxford Advanced Management and Leadership Programme of the Kingdom’s many internationally competitive economic sectors. China 2 95
engages public and private sector leaders in an educational environment France 3 60
to discuss leadership challenges and design innovation strategies, the THESE LARGER ambitions were realised by enacting numerous Hong Kong 4 48
United Kingdom 5 46
final component of the SARCI, which created an atmosphere where domestic measures to create an internal infrastructure that would Russian Federation 6 39
Saudi companies can implement the necessary changes that helped the accommodate the needs of foreign investors. Recognising the centrality Germany 7 36
Kingdom to achieve its top 10 rankings. of investors’ rights to the Kingdom’s overall competitiveness, the Ministry Saudi Arabia 8 36
India 9 35
The extensive efforts to establish leadership that would advance their of Commerce and Industry emphasised that the current law requires Belgium 10 34
competitive economic agenda included the establishment of the National companies to immediately notify shareholders of a director’s conflict of Italy 11 31
Competitiveness Center (NCC). It monitors, assesses, and supports the interest in a transaction and to announce the incident on both its own Luxembourg 12 27
Netherlands 13 27
enhancement of competitiveness in Saudi Arabia. Under the direction website and that of the Tadawul (Capital Market). Brazil 14 26
of the President of the NCC, Dr Awwad Al-Awwad, Deputy Governor Similarly, the ministry pointed out that the Companies Act empowers British Virgin Islands 15 25
for Investment Affairs at SAGIA, the NCC has successfully pursued the minority shareholders to order inspections of a company without the Ireland 16 25
Australia 17 23
competitiveness agenda and driven reforms essential to the Kingdom’s approval of a general shareholders’ meeting. As in the case of construction Canada 18 19
growth. permit costs, clarifying existing legislation and regulation highlighted Singapore 19 17
“Our progress would not be possible without the invaluable cooperation the importance of clearly promulgating laws and publicising critical Spain 20 15
and shared vision of our partners throughout the government and the information. Source: World Investment Report 20010, United Nations Conference on
private sector,” Dr Al-Awwad says. In June 2008, the Unified Office for commercial registration in Riyadh Trade and Development

030
IMAGE COURTESY OMA

01

01 The proposed new international became fully operational, thanks to a shared commitment to enhancing dealing with construction permits and in November 2008, the Riyadh
airport in Jeddah the Kingdom’s business environment and tremendous collaborative Municipality enabled builders to immediately secure temporary building
efforts among SAGIA, the Ministry of Commerce and Industry, the permits. Indicating an unwavering dedication to the Kingdom’s economic
Riyadh Chamber of Commerce, the Official Gazette, the General development, the Riyadh Municipality’s new policy reduced the overall
Organisation of Social Insurance (GOSI) and the Department of Zakat time required to deal with construction permits from 125 days to only 94.
TOP 20 COUNTRIES IN and Income Tax (DZIT). Building on the momentum of these and other reforms in 2008, Saudi
DOING BUSINESS 2010 Integrating personnel from these public authorities as well as from a Arabia reached a ranking of 13th in the World Bank/IFC’s 2009 Doing
notary public and a private bank, the Unified Office efficiently consolidates Business report. For the fourth straight year, the Kingdom’s efforts to
COUNTRY 2009 RANK 2008 RANK CHANGE into one entity all of the interactions and procedures necessary to start strengthen its economy were met with an enthusiastic response from
Singapore 1 1 0
New Zealand 2 2 0 a business. While the previous system required entrepreneurs to spend foreign investors, as FDI inflows in 2008 increased by 57 per cent over
Hong Kong 3 4 1 days shuttling among different agencies, the pioneering Unified Office those in 2007 to more than US$38 billion, making Saudi Arabia the
U.S. 4 3 1 allows an individual to register his company, announce its incorporation, world’s 14th-largest recipient of FDI inflows by 2009 – and eventually the
U.K. 5 6 1
Denmark 6 5 1 open a bank account, and register with GOSI and DZIT under one roof. top 10 rankings of 2010.
Ireland 7 7 0 Entrepreneurs can now visit the Unified Office one day and receive their The future goals of Saudi Arabia reflect the Kingdom’s exceptionally
Canada 8 8 0 commercial registration the next, if not on that very same day. progressive and overachieving ambitions – the same competitive
Australia 9 9 0
Norway 10 10 0 To meet the needs of foreign industry and construction investors, qualities that secured the nation its unparalleled upward mobility in its
Georgia 11 15 4 SAGIA enlisted the help of legal experts to analyze the construction international rankings. In the near future, the Kingdom aims to create
Thailand 12 13 1 permit process and potential areas for improvement. Research found that a domestic infrastructure that surpasses technological and bureaucratic
Saudi Arabia 13 16 3
Iceland 14 14 0 the licensing process costs only US$6,345 – not US$11,534 as previously efficiency, productivity and stability not only in the Middle East, but
Japan 15 15 0 reported: a significant discrepancy that would attract enthusiastic across the world.
Finland 16 11 5 investors. In addition to streamlining procedures, ensuring that “Our next goal is encapsulated in three numbers: 60, 24 and 7. The goal
Mauritius 17 24 7
Sweden 18 17 1 accurate information about doing business in Saudi Arabia is reported for our economic cities is the ultimate in competitive destinations, by
Korea 19 23 4 internationally is crucial to developing the Kingdom’s competitiveness, providing all government services in 60 minutes, 24 hours a day, 7 days
Bahrain 20 18 2 as publications like Doing Business extensively impact the decisions of a week,” Governor Al-Dabbagh says. “You can’t sleep because you just
Source: Doing Business, World Bank/IFC, 2009−2010; NCC analysis investors and entrepreneurs internationally remembered you forgot to renew your driver’s license and it’s 2am on
Saudi Arabia has also successfully streamlined its process for Sunday morning? Pop in, we’ll sort it out in no time.”

031
SAMA CEO
SPEAKS TO THINK
THINKING
ABOUT A
UNIFIED
CURRENCY
DR MUHAMMAD SULAIMAN AL-JASSER, GOVERNOR OF THE SAUDI ARABIAN MONETARY
AGENCY, SHARES HIS THOUGHTS ON THE TOPIC OF A UNIFIED CURRENCY
WRITTEN BY DOROTHY WALDMAN
THE recipient of the 2010 Achievement Award of the Arab
Bankers Association of North America, His Excellency Dr Muhammad
Sulaiman Al-Jasser has been the Governor of the Saudi Arabian Monetary
Agency (SAMA) since February of 2009. He joined the International
Monetary Fund (IMF) as Economic Adviser to the Executive Director for
Saudi Arabia in 1988, eventually becoming the Executive Director at the
IMF, a post he held until 1995. From 1995, until his current appointment,
he served as Vice Governor of SAMA.
Dr Al-Jasser has also served as a member of the Saudi Arabian
Negotiation Team on the accession of Saudi Arabia to the World Trade
Organisation and was honored with the King Abdulaziz Medal of the
First Order for his services to the Kingdom of Saudi Arabia.
With a vast experience in the realm of international monetary policy,
the current Chairman of the Gulf Cooperation Council (GCC) Monetary
Council is eminently qualified to discuss the topic of a single currency,
which has been seriously and vigorously debated within the region during
recent years. Though the suggested goal of finalising an agreement that
provides for a single currency to be used among the GCC states is highly
unlikely at this point due to stalled negotiations, Dr Al-Jasser recognises
many benefits to such an economic agreement.
“The adoption of a common currency will bring a number of economic
benefits,” he states. “It will eliminate the currency conversion costs
involved in intraregional transactions and remove the disturbances
in relative prices arising from nominal exchange rate fluctuations. The
032
lowering of transaction costs and removal of exchange rate uncertainty
will contribute to raising intraregional trade.
“The adoption of a common currency, with the resultant reduction
in currency conversion costs and elimination of exchange risks,
should promote intraregional investments. It will also be conducive to
investment by foreigners in the region. Moreover, the introduction of a
common currency will serve as a catalyst for stronger integration and
deepening of financial markets.
“It will foster the integration of money markets across the common
currency region and lead to a uniform short-term interest rate structure.
The introduction of a common currency will also be associated with
the pursuit of a common monetary policy and more disciplined fiscal
policies by the member countries.”
However, Dr Al-Jasser, who earned both his Master of Arts and PhD in
economics from the University of California in 1981 and 1986, respectively,
recognises that in spite of these profound benefits, for a monetary union
to be successful, certain safeguards must be implemented.
“Fiscal discipline is crucial for the success of the monetary union.
Without it, large differences in member countries’ fiscal stances can
create tensions, leading to policy disagreement and hindering other key
macroeconomic convergence requirements for the smooth functioning
of the union, such as price and financial stability,” he says.
“Member countries must, therefore, be subject to fiscal convergence
CORBIS
criteria [budget deficit/GDP and debt/GDP] and adequate budgetary
 XTHE ADOPTION OF A COMMON CURRENCY, WITH THEX
XRESULTANT REDUCTION IN CURRENCY CONVERSION COSTSX

XAND ELIMINATION OF EXCHANGE RISKS, SHOULDX

XPROMOTE INTRAREGIONAL INVESTMENTS.”X

HIS EXCELLENCY DR. MUHAMMED SULAIMAN AL-JASSER

033
034
 SAMA CEO
SPEAKS TO THINK

02

procedures for maintaining fiscal discipline. The achievement of fiscal cannot be ignored. They graphically illustrate the need for safeguards and
convergence should receive the highest priority before the introduction the potential need to enforce compliance to specific criteria.
of the common currency. “It is highly desirable to form monetary unions for obvious reasons.
“Compliance with the fiscal convergence criteria is essential on a However, member countries must play by the rules and strictly adhere to
sustained basis during the transition to the common currency. Thus, the prescribed convergence criteria to ensure their durable success,” Dr
improvements related to one-off Al-Jasser says as a recommendation to
measures or temporary positive terms any group of sovereign nations, including
of trade shock would not be considered those of the GCC who are considering a
sustainable. A monetary union unified currency. “Indeed, events in the
ultimately needs to be complemented Eurozone point to the necessity of having
by co-ordination between fiscal and better balance sheet management at the
monetary policy.” government and banking system level.”
This co-ordination between fiscal and The role of each nation’s central bank
monetary policies, especially between would not be dramatically altered, he
01 HE Dr participating countries, may, however, says, but there may be certain restrictions.
Al Jasser prove to be a significant hurdle as such “National central banks should continue
addressing co-operation may be construed as a to carry out all standard central banking
SAGIA’s requirement for each member state to 03 operations involving the common
annual Global forego a certain level of autonomy and currency. However, these operations
Competitiveness sovereignty. should be in line with the dictates of the monetary union central bank.”
Forum in Riyadh “The introduction of a common currency will involve a loss of With the multitudinous benefits to countries sharing a unified currency,
earlier this year independence in pursuing monetary and exchange rate policies by the THINK asked Dr Al-Jasser whether he thought the time had come to
02 Opened in common currency countries individually,” Dr Al-Jasser admits. “However, consider a worldwide unified currency. Admittedly, this is not on any
1986, the 25km this will not be of much significance for the GCC countries as these universal organisation’s agenda, but it is an intriguing concept to contemplate.
long King Fahd countries have already been co-ordinating their monetary, financial and “A worldwide unified currency could be part of one’s wish list against
Causeway links other policies, and their exchange rates have remained almost unchanged a backdrop of diverse economic structures,” he says. “However, that is
the Kingdom to for a prolonged period under a similar pegged exchange rate regime.” impractical as the world tried the gold standard before. Moreover, for one
Bahrain Although the common bonds of the GCC countries may promote a currency to succeed, the world would need to have effective policy co-
03 SAMA Head level of voluntary compliance not necessarily connecting the countries ordination. It will be extremely difficult to co-ordinate economic policies
01 office that use the euro, the recent difficulties the Eurozone has experienced in a group as diverse as the world is.”

035
THINK
ROUNDTABLE
SINGLE MINDED
THE GLOBAL ECONOMIC CRISIS HAS REOPENED THE DEBATE ON THE WORKABILITY
OF A COMMON CURRENCY AMONG A GROUP OF NATIONS.
WRITTEN BY DOROTHY WALDMAN
WHEN the earliest explorers began to discover new
peoples and products, and different ways of accomplishing trade,
rudimentary barter transactions between individuals to exchange goods
and services became outmoded. It meant that new ways of doing business
had to be established to accommodate these new realities of expanded
trade and commerce.
Almost from the very beginning, governments (whether headed by
the chief of a nomadic tribe or elected president or prime minister of a
world power) and economists (regardless of what they were called at the
time) have focused their efforts on the goal of making trade transactions
more efficient, resulting in the creation of money, stock exchanges and
international arbitration. Fluctuations in values and exchange rates
between the currencies of different nations has thus lead to a debate
regarding the feasibility of the creation of a single, unified currency
among various groupings of countries.
In the latter half of the 20th century, the possibility of creating a
common, unified currency was contemplated by the European Union
(EU), the members of the North American Free Trade Agreement
(NAFTA) and the Gulf Cooperation Council (GCC). However, only the
euro, which was introduced on New Year’s Day 1999, has become a reality.
The AMERO (the suggested NAFTA currency) has slipped into obscurity
and the establishment of such a currency is still under consideration
within the Gulf States, with the initial goal of 2010 inauguration date
extended, perhaps to 2013 or beyond.
There are many advantages of having a unified currency according to
Benita Ferrero-Waldner, former European Commissioner and member
of the board of wind turbine manufacturer Gamesa in Spain, who is a
passionate advocate of the common currency concept, even though she
is well aware of the controversies surrounding it.
“First of all, within the different countries you have one currency. You
have transparency, you don’t have any more different exchange rates, you
don’t evaluate or devaluate with regards to another one. There are many,
many benefits,” she says.
Among the recognised benefits are significant savings in the cost
of transactions within the currency zone from not having to convert
currencies. This can lead to the development of wider markets for goods
and services; the increased ease in attracting investment and improving
competitiveness on the world markets; improved opportunities for
planning and strategy formulation; and, until recently, the anticipation
that economies as part of a massive market would not fluctuate as
dramatically as in the past from boom to bust, therefore adding stability.
“Different currencies add volatility to your investment outlook. You
invest from your local currency into a different currency,” said Jens Yahya
Zimmermann, managing partner of New Silk Route Growth Captial,
at the Global Arab Business Meeting (GAB). By not having the risk of
currency fluctuations, investment decisions are based on anticipated
return, not exchange rates.
036
The major disadvantage is not economic, but rather political, because of
the inevitable loss of sovereignty in controlling certain aspects of monetary
and fiscal policy within a member country. The recent economic crisis,
including Greece’s highly leveraged public debt estimated at 120 per
cent of GDP, illustrates how the policies of one country within such an
economic union can affect all the countries within the grouping, in spite
of safeguards initially put into place. A public debt of this magnitude is
in violation of the Maastricht Treaty of 1992, which limits the amount of
debt a member country can incur to 60 per cent of GDP.
The thesis of Nobel Prize-winning economist Robert Mundell, who is
sometimes referred to as the conceptual father of the euro, states that in
international finance, a government can have only two choices among
three options: (1) stable exchange rates, (2) international capital mobility
and (3) domestic economic policy autonomy (such as full employment,
interest rate policies and counter-cyclical fiscal spending).
His vision requires sovereign states to give up domestic economic
policy autonomy in exchange for the benefits of cross-border capital
mobility and stable exchange rates. The political importance domestic
economic policy plays within a country presents stumbling blocks for
nations negotiating an agreement regarding the establishment of a
common currency.
DISSENSION RESULTS when the goals of different countries come
into conflict. For example, one country may use interest rates to fuel
its expansion and this may cause inflation in another, or if one country
accumulates large debt from domestic policies. To eliminate such
problems, member countries must agree in advance to forego a certain
amount of self-determination and sovereignty of internal fiscal policy for
the greater good.
This presents the problem of the sovereignty of member nations. James
Fierro, the founding partner of Venture Resources, an organisation
involved in the identification, development and financing of emerging
growth companies says: “The problem with money is the nature of it
being sovereign. Because it is sovereign, it then requires you to use FX
[foreign exchange] and to manage FX you have to manage volatility, and
to manage volatility you have to use speculation. The single, number one
underlying reason for the global economic crisis was not the bankers but
the failing monetary system. This monetary system is not designed for
global economies, it is designed for sovereign economies.”
Interestingly, he goes on to explain how this is bringing about a retro
trend – the return to the barter system. “We found out that most of
the biggest companies in the world are engaged in some form of non-
monetary trade. They don’t usually call it barter; they refer to it as offset
trade, counter trade, reciprocal trade or industrial participation trade,”
Fierro says.
“Why does GE sell a US$150 million power generating turbine to
China and take payment in coal and frozen chicken? For me this is almost
 “THE PROBLEM WITH MONEY IS THE NATURE OF IT BEING
X X

SOVEREIGN. BECAUSE IT IS SOVEREIGN, IT THEN REQUIRES YOU

X X

TO USE FX [FOREIGN EXCHANGE] AND TO MANAGE FX YOU

X X

HAVE TO MANAGE VOLATILITY, AND TO MANAGE VOLATILITY

X X

YOU HAVE TO USE SPECULATION. THE SINGLE, NUMBER ONE

X X

UNDERLYING REASON FOR THE GLOBAL ECONOMIC CRISIS WAS

X X

NOT THE BANKERS BUT THE FAILING MONETARY SYSTEM. THIS

X X

MONETARY SYSTEM IS NOT DESIGNED FOR GLOBAL ECONOMIES,

X X

IT IS DESIGNED FOR SOVEREIGN ECONOMIES.”

X X

037
THINK
ROUNDTABLE

EUROZONE
COUNTRIES
More than 320 million Europeans use the
euro across 22 countries:

Andorra* Luxembourg
Austria Malta
Belgium Monaco*
Cyprus Montenegro*
Finland Netherlands
France Portugal
Germany San Marino*
Greece Slovakia
Ireland Slovenia
01 02 03
Italy Spain
Kosovo* Vatican City*
unbelievable. The reason they do it is money is simply not available. When “Today we are living in a globalised world. And in a globalised world,
you start digging deeper on why money is not available – it goes back to one player cannot make up against the others. I am a defender of the Q Estonia is expected to begin using the
the design of the monetary system. Non-monetary trade is actually an bigger groups, although you forego sovereignty in some ways. I think for euro in 2011.
extremely efficient transaction except that it has to be done in a bilateral the benefit of higher importance, the benefit of your country, yes, I would Q Lithuania and Latvia are expected to join
trade – there is no paper work, no FX and no mismanagement.” go for it. I would do that as an analogy to what we have been doing in the the Eurozone in the next few years and
Is the concept of a common currency still relevant today, in light of EU. There was a moment of risk, but I think we have been going ahead begin using the euro.
current events? According to Ferrero-Waldner, it is. “I was fighting for with a better coordination of fiscal and economic policies.” Q European Union members not part of the
the euro as State Secretary for Foreign Affairs in Austria. Indeed I think Whether a common currency is in the best interests of an individual Eurozone and who therefore who do not
the unified currency is a very important step forward. As we have seen country can only be determined by those involved, and their willingness use the euro are the United Kingdom,
now in the crisis, there has to also be at least a coordination of economic to co-operate and co-ordinate common goals and policies for the united Denmark and Sweden.
policies. It’s very important,” she says. benefit. And this is as political as it is economic. *Non-EU members that officially use the euro as their currency.

COMMON CURRENCY AND THE GCC

IS A COMMON CURRENCY NECESSARY IN THE GCC AND WOULD IT
BE BENEFICIAL TO THE REGION? THERE ARE MANY FACETS TO CONSIDER.
A SINGLE currency within the GCC and the
accompanying common economic policies could
bolster foreign direct investment as well as trade
agreements between member countries, paving the
way for sustainable growth. A common currency
may also be able to establish the GCC as a global
force alongside the dollar and the euro, becoming an
important element in the challenges of globalisation.
However, a single currency project also has
political significance. “The formation of a GCC
monetary union would create a political and
institutional environment that would facilitate greater
regional policy co-ordination,” points out Masood
Ahmed, director of the Middle East and Central Asia
department at the International Monetary Fund in
Washington.
The practicality of a common currency is
dependent on co-ordinated financial integration,
banking regulations and payment and settlement
systems; transparent and improved economic
decision making; and the standardisation of
economic statistics across the region. A regional
monetary authority and monetary policy and
procedures must be established.
At the Global Arab Business Meeting in Ras Al
Khaimah, Mohammed Al- Barwani, chairman of MB
Holding, Oman, commented: “I think yes it would be
easier, but all GCC currencies are really dollar-based.
So although in different countries of the GCC, we
have currencies with different names, forget about the
names, underneath it is the US dollar. So in reality we
almost have a common currency. “
Shahid Kazi, General Manager, ValuStrat 01 Benita Ferrero-Waldner
Consulting, at the same meeting remarked, “Going 02 Robert Mundell
now to our region, the Arab world, we have to 03 James Fiero
question what is the basis of the issuance of our
currencies. Let’s not talk politically, let’s just think
logically… all the economies, all the financial
experts and all the stakeholders in the system need
to sit down and set what is the basis of our dirham,
riyal or dinar.
“Yes there are some logistical constraints such as
the current peg to the dollar, but these issues are
resolvable if our intentions are right. This is my strong
advice to the Arab world – to have an audited basis
on how these currencies are issued.”

038

WRITTEN BY THEODORE J GORDON, THE WORLD FUTURE SOCIETY’S FUTURIST OF THE YEAR
THE STATE OF THE FUTURE INDEX
LOOKS AT FACTORS THAT CAN ALTER
THE FATE OF THE WORLD AND OFFERS
SUGGESTIONS THAT MAY SECURE A
BETTER TOMORROW.
MEASURING
THE STATE
OF THE
FUTURE
WILL the world of our children be better than our own?
We look around and see fewer wars but more terrorism;
diminishing infant mortality but higher social costs as the
elderly population expands. Some things are improving and
others are worsening. So how can the question be answered
responsibly?
Consider the stock market: some stocks are up, while others
are down. The condition of the market as a whole would be
hard to understand without composite indexes. On the social
stage, United Nations Development Programme (UNDP)
computes the Human Development Index (HDI) to compare
social conditions among countries; the HDI is composed of
measures of life expectancy, income and education.
All indexes have a dark side: they tend to wipe out
differences among groups and hide variations in the
components of the index that lead to overall ups and downs.
Also, almost all deal only with history and the present and do
not forecast.
Ten years ago, the Millennium Project, an independent
non-profit global participatory futures research think tank,
constructed the first State of the Future Index (SOFI). In a
unique global study, judgements of experts from around the
world were used to choose the variables that such an index
ought to include and the relative importance of each. The
SOFI is based on forecasts of these variables. It answers the
question: is the outlook for the future improving?
The SOFI calculation also considers the consequences of
future events that could change the trends of each variable,
for example how a large-scale accident at a nuclear power
plant might later affect global fossil fuel consumption, or how
the advent of a strong global protectionist movement among
exporting nations might affect overall availability of food.
About 100 such developments have been considered and
OPINION
FUTURIST
THE MOST RECENT SOFI IS BASED
ON A SCENARIO OF A SERIOUS
CONTINUING RECESSION.
ALTHOUGH PAST ANALYSES HAVE
SHOWN A GENERALLY FAVOURABLE
OUTLOOK, SOFI PROJECTS A
DECLINING LEVEL FROM 2010
TO 2020 AS THE WORLD
WORKS THROUGH ITS FINANCIAL
DISARRAY.
The most recent SOFI is based on a scenario of a serious
continuing recession. Although past analyses have shown
a generally favourable outlook, the recession SOFI projects
a declining level from 2010 to 2020 as the world works
through its financial disarray. Even so, considering future
developments tends to brighten expectations, as shown by
the curves in the figure below, with the upper curve rising at
a rate approaching the 1990-2005 era.
Some of the Millennium Project’s work has illustrated
how the SOFI might be used to help decision makers choose
beneficial policies by demonstrating the effects of proposed
policies on the Index. The SOFI approach provides a
while there is no way to compute most of the linkages, the mechanism for studying the relationships among the items in
judgements of experts are used to assess the probabilities of a system – how making a single change ripples throughout a
occurrence and timing of the consequences of these “game- system, in other words, creating some positive and intended
changing” developments. consequences as well as unintended results. Think tanks
in several countries have constructed SOFIs for their own
country, and one Gulf country has included the method in
its national planning process to inform policy making and
Many variables appear likely to continue ■ R&D expenditures establish targets for their early warning system.
to improve despite the pressures of the ■ Clean energy use The SOFI and the global collection of expert opinion
recession. ■ Food availability  (used in the SOFI to obtain the judgements needed for its
Variables that seem likely to continue ■ Population in countries that are free computation) are part of a larger movement in planning
improving include: ■ GDP per capita known as “collective intelligence”.
■ Literacy rate ■ Number of refugees Collective intelligence systems seek synergies among data,
■ School enrollment information and human judgement, using software and
■ Countries having or thought to have plans Some may change for the better. hardware, which provides feedback to produce (nearly) just-
for nuclear weapons Variables that were worsening but may in-time knowledge for better decisions. The interaction and
■ GDP per unit of energy use improve include: feedback among these elements allow each to benefit from
■ Number of major armed conflicts ■ People voting in elections the other.
■ Population growth ■ Forest lands A global climate change situation room has been built in
■ Physicians ■ Prevalence of HIV Gimcheon, South Korea, focusing collective intelligence on
■ Internet users climate change. Other applications – from nations to business
■ Infant mortality And some which worsened in the past – will benefit from this new way to synthesise information and
■ Life expectancy at birth two decades seem poised to continue to judgement to help improve decision making at all levels.
■ Women in parliaments worsen.
Variables that have been worsening and may
However, there is a risk of reversal in some continue to worsen include: Theodore J Gordon is the Senior Research Fellow of the Millennium
variables that had improved in the past. ■ Levels of corruption Project which he co-founded. He was also the founder and President
Variables that had improved but may change ■ CO2 emissions of the Futures Group and a founder of the Institute for the Future. He
direction include: ■ Unemployment is the author of numerous books and papers dealing with futures
■ Population with access to improved ■ People killed or injured in terrorist attacks research methodology; much of his work has been associated with
water sources ■ Global surface temperature anomalies  the Delphi method, Real Time Delphi, Trend Impact and Cross Impact
■ Poverty: people earning under ■ Total debt service Analysis. He also was Chief Engineer for the upper stage of the
US$1.25 per day Saturn V rocket used in the Apollo programme.
039
WHAT DO
YOU THINK
WHAT DO YOU THINK?
WHAT IS THE FUTURE OF CAPITALISM IN THE GLOBAL ECONOMY? GRADUATE AND
POST-GRADUATE STUDENTS DISCUSS THE ISSUE AND PUT FORWARD THEIR IDEAS.
WRITTEN BY JOANNE MOLINA
“
A SPECTRE is haunting Europe – the spectre
of Communism,” proclaimed Karl Marx and Friedrich Engels in The
Communist Manifesto, published in 1848. Their query into how capitalism’s
tenets impact labour, culture and society seems to have gone out of vogue
with the fall of the Berlin Wall and the rise of a thriving capitalist economy
in countries such as post-Communist Russia and China.
But today, as the political, cultural and social structures of nations
attempt to accommodate the later stages of advanced capitalism, it may
be prudent to ask if the questions posed by the spectre haunting Europe
in the 19th century are still worth asking.
It is no coincidence that interdisciplinary critiques of capitalism,
such as those in the novels of Charles Dickens, the writings of textile
and furniture designer William Morris and even the contemporary
controversial British graffiti artist Banksy, have appeared alongside the
rise and dominance of this economic model.
Given the proliferation of capitalist models in both developed
and developing nations, as well as contemporary concerns with the
psychological, economic, environmental and social implications of its
preeminence, we asked a group of graduate and postgraduate students
what they believe the future of capitalism might be.
During a discussion at a Washington think tank some years ago,
a participant half-jested that on the evening of November 9, 1989,
American diplomats were sipping cocktails at a villa in Wannsee, the
southern section of Berlin. Upon returning home, they were stunned to
witness crowds pouring into the streets.
The scholar Ted Hopf has made the argument that the end of the Cold
War was not predicted, in part, because the question was never asked in
the first place. We are, alas, hapless; or are we?
History happens, with its announcement typically and indifferently
eluding diplomats and scholars alike. Francis Fukyama’s famous
declaration that history may have come to an end in 1989 should
deliver the point home that the tempting practice of proclamations and
predictions is unseemly in scholarship.
We cannot know, or predict, the future of capitalism in an era of
globalisation. However, we can search our minds or look to scholars,
whose reasoning powers may help us discern hints about its sustainability.
Two scholars – Albert O Hirschman and Karl Polanyi – come to mind
in this regard. Both theorists describe a sort of built-in resilience that
characterises modern-day economies.
For Hirschman, economic systems never draw from their full potential
– it is this ‘slack’ in the system that is available and called upon when
problems arise. For Polanyi, who coined the term, ‘double movement’,
economic systems undergoing rapid transformations and growth are
typically characterised by lags in terms of addressing the social fallout.
040
When that happens, energy is mustered to address the latter.
When markets fail to deliver the outcome that societies value, we legislate,
or we revolt; if we don’t move, we sink, and usually not all in equal parts.
Markets – and other putative sociological constraints – provide the conduit
through which to organise economies; individuals edit them.
The current staying power of capitalism resides in the latter. Globalisation,
however defined, may produce political-economic outcomes that will affect
different sociological groups unequally, or even inefficiently. Whether
capitalism survives a rapidly transforming global economy could hinge on
the ideological latitude accorded to individuals to muster the responsiveness
necessary to address crises when they emerge. We can’t predict the results.
It bears remembering that there is not one form of capitalism, or two –
there are many. It’s something to celebrate.”
Heidi Hiebert, international studies, American University
Heidi Hiebert earned her MA in international economics from the Graduate
Institute of International Studies in Geneva, Switzerland. Hiebert has worked for
the World Economic Forum in Geneva and Decision Resources, a former affiliate
of Arthur D Little Inc in Boston, Massachusetts and Berlin, Germany.
Both Karl Marx and Joseph Schumpeter, polar opposites with
regard to capitalism, agreed on one point: whether one called it
‘creative destruction’ (Schumpeter) or ‘order in disorder’ (Marx), capitalism
progressed on the basis of a fundamental principle of disruption.
For decades, the common view found itself rewarded by the idea that
this disruption would provide a relatively constant rising tide, and we in
our boats, both small and large, could comfortably set sail on the waves of
the various market indices. What changed all of that, as we all know, was
the sort of disruption that causes people to re-evaluate the safety of their
ideas, leading to a new disruption where the forces of regulation are in a
pitched battle with the previous forces of deregulation.
So what does this bode for the future of a once again questionable
capitalism? Certainly not the post-capitalism of a vague Communist
freedom, for one aspect that is only recently coming into view for thinkers
of the market is just what a participant in capitalism is – the rational actor
who plays a utilitarian game, or the irrational consumer who thinks only of
what can be gained now without regard to the consequences of the future?
As things stand, the latter defines the market and its members, and no
higher principle guides their relations. Until one does, the market will be
guided by the principle of disruption, and the seesaw of productivity and
disaster will mirror this.”
WC Swedlow, philosophy, DePaul University
WC Swedlow received his Bachelor’s degree from the University of California,
Santa Cruz, and recently received his PhD in philosophy from DePaul University.
His book, Against the Personification of Democracy: A Lacanian Critique of
Political Subjectivity, was published by Continuum in 2009.
WHEN MARKETS FAIL TO DELIVER THE OUTCOME THAT SOCIETIES
X X

VALUE, WE LEGISLATE, OR WE REVOLT; IF WE DON’T MOVE,

X X

WE SINK, AND USUALLY NOT ALL IN EQUAL PARTS. MARKETS –

X X

AND OTHER PUTATIVE SOCIOLOGICAL CONSTRAINTS – PROVIDE

X X

THE CONDUIT THROUGH WHICH TO ORGANISE ECONOMIES;

X X

INDIVIDUALS EDIT THEM.

X X
WHAT DO
YOU THINK

The emergence of the capitalist system has revolutionised the Of course, we need to bear in mind the enormous intellectual work that
ways people live, it has redefined their wants and needs and has will be required to demonstrate the possibility and viability of such an
radicalised the ways markets operate. Since the first industrial revolution, idea. But I believe that such a process would encourage us to think about
the successive ‘technological innovation surges’ the extent and limits of our moral and political
that followed contributed in bringing an communities, and, ultimately, what distinguishes
unprecedented standard of living and in forming us from others at the international level, which I
today’s civilisation. think will be crucial in discovering alternatives to
However, the shortfalls of capitalism of the current capitalist system.”
turbulence and self-destruction were predicted David Schwartzman, neuroscience,
by early economists such as Smith, Marx, and Oxford University
Schumpeter. Today, such shortfalls are evident, David Schwartzman recently completed his PhD in
for example, in the widened gap between the cognitive neuroscience at Oxford Brookes University in
rich and the poor, the credit crunch causing the the UK, where he also received an MA in science.
recent economic meltdown and the deteriorating
environment. The advent of the internet, impressive
The future of capitalism should pursue technological innovations, vast
Sustainable Development as a guiding vision to improvements to communications and
balance the social, environmental and economic transportation infrastructures and the reduction
dimensions. Especially as the fight against of trade barriers are all contributing factors to a
climate change gains momentum and enforces smaller, flatter world. Every day the human race
a direction away from fossil fuels and towards OIL-BASED COUNTRIES, is becoming increasingly exposed and accessible
cleaner and greener energy. Oil-based countries, SUCH AS SAUDI ARABIA, to its varied constituent cultures. Capitalism has
such as Saudi Arabia, have an opportunity to HAVE AN OPPORTUNITY done wonders in making this happen – it has
continue to lead the world energy markets by TO CONTINUE TO LEAD improved both the standard and quality of living
pursuing such a transition. THE WORLD ENERGY for many nations.
Whether it is Social Capitalism or Natural MARKETS BY PURSUING The story is not all rosy, though. Among other
Capitalism, the kind of capitalism that must SUCH A TRANSITION. things, critics have accused capitalism of widening
be sought after in the future is the kind which NOURA MANSOURI
the rich-poor gap. The financial crisis has shed
concerns the less developed world and provides much light on the capacity of unregulated human
a platform where developed nations could assist in alleviating poverty, greed and its destructive consequences. Hence, along with the benefits
eradicating illiteracy, and developing economies. The kind that Amartya of globalisation, there are broader and deeper systemic risks that all
Sen teaches on the liberty that people should have ‘to live the kind of governments involved in the free market world should proactively
life they have reason to value,’ and the one which Mohammad Yunus address.
redefines into a ‘New Kind of Capitalism’ that cares for society’s most Moving forward, I see it as necessary to allow the resilient
pressing needs. entrepreneurial human spirit to flourish but under a moderate degree of
Noura Mansouri, doctoral student, Queen Mary University of London government/third-party regulation to contain this growing systemic risk.
Noura Mansouri is a Saudi doctoral student in managing energy technology The combination would allow capitalism to evolve in a manner that is
innovation and policy for sustainable development at Queen Mary University more beneficial (than detrimental) to humanity.
of London in the UK, where she has also completed her MBA in Technology Think of a firm as a powerful member of society. Taking into account
Exploitation and Management. She has received her BSc in Management Churchill’s observation that ‘the price of greatness is responsibility’, a
Information System at Dar Al Hekma College in Jeddah, Saudi Arabia, where corporation should act like a responsible member of society – one that
she has also received Diplomatic Training in collaboration with The Fletcher gives back as much as it derives from its environment. I believe that
School, Tufts University, USA. for capitalism to succeed the symmetry principle will be much more
prominent in shaping our future and sustainability will be its main driver.
As we look on with hope that the current financial train wreck A case in point is Saudi Arabia with its God-given oil reserves. It has the
is coming to an end, voices are being raised which demand huge potential to take global environmental sustainability to a whole new level.
increases in the regulation and curbing of capitalist excess. Capitalism, like Almost a decade ago, Bill Clinton publicly stated that the Kingdom
any system, has remained largely untested, the test has recently come in the should not simply aim to be the oil capital of the world but the energy
form of the global economic crisis and capitalism has categorically failed. capital of the world. Through conscientious capital allocation, it has the
Karl Marx predicted that capitalism would ultimately suffer from a capacity to utilise its oil revenues to transform the currently decentralised
cycle of worsening crises, each crisis serving a temporary rejuvenating renewable energy field into a brand new globally centralised industry –
function but bringing closer the day when the system will no longer one that would defy the myth of there being mutual exclusivity between
be able to manage its internal contradictions. I believe that the era of enormous wealth and environmental sustainability.
financial liberalisation is coming to an end. Yet, unlike in the 1930s, no Jamil Fahmy, MBA candidate, The George Washington University
credible alternative to this system exists on the horizon. Jamil Fahmy is a 2012 MBA candidate at the George Washington University
So where do we go from here? Perhaps one way to address the structural School of Business with a vested interest in international finance and
challenges the world is encountering in the fields of international finance, sustainability. He is from Jeddah, Saudi Arabia. He has been working on the
economics, development, and the environment is to explore the feasibility structured derivatives desk of a prominent regional commercial bank based in
of public policy at the global level? Saudi Arabia.

042
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CEO INDUSTRY

044
 INTERVIEW

KLAUS KLEINFELD, CEO OF ALCOA, THE

WORLD’S THIRD LARGEST PRODUCER
OF ALUMINUM, PUTS A LOT OF STOCK
IN AIDING THE COMMUNITIES HIS
MULTINATIONAL COMPANY HAS
OPERATIONS IN – AND IS PROUD THAT HIS
WORKFORCE FEELS THE SAME WAY.
WRITTEN BY JOANNE MOLINA

PUTTING
PEOPLE
FIRST
“
WE have an obligation to win the license to operate in the
communities where we do business,” declares Klaus Kleinfeld, CEO
of New York-based Alcoa, the world’s leading producer of primary
aluminum, fabricated aluminum and alumina.
Employing around 59,000 people in 31 countries across the world, it
has been named the most admired metal company for 27 consecutive
years by Fortune magazine, whose “admired” ranking is the authoritative
index of corporate reputation in the United States. Kleinfeld’s nuanced
philosophy of leadership and management bring keen insight into the
needs of the international marketplace, securing Alcoa’s future success.
“The role and task of the CEO will probably always remain the same and
that is to lead people,” he says. Kleinfeld acknowledges the importance of
not only hiring the best employees but also making sure that everyone is
aligned and can work together as a team. “Nobody is perfect but a team
can be,” he reflects. “Motivating a team is about showing people that they
can achieve what they believed to be impossible.”
His belief in the power of harnessing the talent of individual players to
forge a dynamic team has created a progressive atmosphere that extends
to every facet of the company’s global presence. Alcoa has produced
solutions to environmental issues, and helped create and sustain
important social and quality of life-based projects in each community in
which they do business.
One of Alcoa’s premiere forward-looking projects has been its

045
INTERVIEW
01
collaboration with Ma’aden, the Saudi Arabian Mining Company, to
develop a fully integrated, world-class aluminum industry in the Kingdom.
“I am fortunate to have been able to work with His Royal Highness Prince
Faisal bin Turki Al Saud and SAGIA. They have been uncompromising in
their support and determination to make the Ma’aden Alcoa aluminium
joint venture a success,” Kleinfeld says.      Vice-President (Aluminium, Strategic Business Unit) and Project
Established as a Saudi Arabian joint stock company in March 1997,
Ma’aden facilitates the development of Saudi Arabia’s non-petroleum
mineral resources and diversifies the Kingdom’s economy away from
petroleum and petrochemical sectors. In July 2008, Ma’aden offered 50
per cent of the company’s shares for subscription in a successful $2.46
billion initial public offering (IPO).
Located at the port city of Ras az Zawr, the location for Ma’aden’s
minerals industry complex, a 77km/sq site, 90km north of Al Jubail on
the Arabian Gulf coast, will become the world’s largest fully integrated
aluminum complex. In addition to housing the alumina refinery,
046
aluminum smelter and rolling mill for the Ma’aden Alcoa joint venture
aluminium industry, it is also the site for Ma’aden Phosphate Company’s
integrated chemical and fertiliser facility, which is due to begin operation
in 2010.
At the ground breaking ceremony in June, Abdullah Busfar, Ma’aden’s
Management said: “The team has worked very hard over a long period
of time to bring the project this far, and it is from today that we actually
begin to see it on the ground in Ras az Zawr. It is a landmark day not only
for Ma’aden and Alcoa but also for the aluminium industry in the Gulf
and for the diversification of Saudi industry.”
Capital investment will be approximately $1.8 billion, subject to the
completion of detailed feasibility studies and environmental impact
assessments. Ma’aden will own 60 per cent of the joint venture; Alcoa will
control the remaining 40 per cent o through an investment partnership 01 Barra Grande hydropower plant
in which it will own 20 per cent, and its partners will participate through in Brazil
 01
01 Reforestation, Western Australia
02 Alcoa’s sustainable development,
Huntley Australia
financing that represents the other 20 percent. Alcoa and each of the
partners will invest $900 million over a four-year period and will be
responsible for its pro rata share of the project financing, in addition to
specific completion commitments.
Alcoa will provide its extensive industry knowledge, management
expertise and support during the design, construction and operation of
the mine, refinery, smelter and rolling mill. It will also arrange the supply
of alumina feedstock to the smelter from outside the Kingdom until the
project refinery comes on stream. Alcoa and Ma’aden will work with
leading international and local firms on the design and construction of the
complex, including Wagstaff, which will supply the joint venture’s vertical
direct chill casting complex with t-ingot, rolling ingot and extrusion
billet casting equipment. The contract includes capital equipment and
technology to produce aluminum rolling ingot and extrusion billet at
the casting complex, currently under construction and scheduled to start
production in 2013.
INITIALLY, the joint venture will develop a fully integrated industrial
complex, including a bauxite mine with an initial capacity of 4,000,000
metric tonnes per year (mtpy), an alumina refinery with an initial
capacity of 1.8 million mtpy, an aluminum smelter with an initial
capacity of ingot, slab and billet of 740,000 mtpy, and a rolling mill with
initial hot-mill capacity of between 250,000 and 460,000 mtpy. The mill
will focus initially on the production of sheet, end and tab stock for the
manufacture of aluminum cans, and potentially other products to serve
02
the construction industry. “It will be one of the most technically advanced
mills in the world,” Kleinfeld says.
The natural, environmentally friendly quality of aluminum has also
allowed the company to rapidly diversify its products and services while
maintaining its position as an environmental leader. “We are blessed
because aluminum is a miracle metal,” Kleinfeld says.
Approximately 75 per cent of all of the aluminum ever produced
since 1888 is still in active use today. For the ninth consecutive year,
Alcoa (NYSE:AA) has been selected as a component of the Dow Jones
Sustainability Indexes (DJSI). Alcoa was named to both the World and
the North American Indexes. The Dow Jones Sustainability World Index
(DJSI World) comprises the leading companies in terms of sustainability
around the world, and captures the top 10 per cent based on long-term
economic, environmental and social criteria out of the biggest 2,500
companies worldwide. The Dow Jones Sustainability North America
Index (DJSI North America) captures the leading 20 per cent in terms of
sustainability out of the largest 600 North American companies.
According to the company’s 2009 sustainability report, Alcoa’s advances
included performing life cycle assessments of aluminum-containing
products, including computer laptops, automotive space frames, truck/
trailers, city buses, and aluminum bottles; conducting third-party,
peer-reviewed life cycle assessments of aluminum beverage containers
and automotive parts in association with the European Aluminium
Association, U.S. Aluminum Association and International Aluminium
Institute; continuing reductions in absolute greenhouse gas emissions
047
INTERVIEW
in 2009 that resulted in a 44 per cent reduction from 1990 levels; and
processing improvements in their Global Primary Products group, which
reduced direct greenhouse gas emissions by more than one million
tonnes over 2008.
Alcoa is also the first aluminum company to receive a Cradle to Cradle
certification from MBDC (McDonough Braungart Design Chemistry),
a global sustainability consulting and product certification firm, when
it was awarded silver certification for its primary aluminum. Cradle
to Cradle certification is an independent environmental certification
process for materials and products that assesses the total impact of a
product on human health and the environment.
“Cradle to Cradle certification is landmark recognition of the uniquely
sustainable characteristics of Alcoa aluminum,” says Kevin Anton,
chief sustainability officer for Alcoa. “Through this certification, Alcoa
can assure its customers the company is continuing to improve the
sustainability of our metal from initial production through use and then
recycling.”
Kleinfeld lauds Alcoa’s efforts surrounding the development of their
mine in the Juriti region of Brazil, a project striving to meet and exceed
standards that will allow both the environment and the community in the
area to thrive. In partnership with the municipal administration of Juruti
and in agreement with the community, Alcoa launched the positive agenda.
With investments of $50 million the package of actions includes rural
and urban infrastructure, health, education, culture, the environment,
public security and social assistance. These are voluntary actions on the
part of the company that have been agreed to directly by the community
following public hearings that resulted in the licence being granted for
setting up the Juruti mine.
One of the greatest results of these initiatives has been creating a
foundation for agency on behalf of the Juriti community. Its efforts have
been so extensive that Conservation International, a leading sustainability
048
02
01 03
NGO, said: “Alcoa is raising the bar quite high and is creating hopefully
a new model of how mining projects can be established in Amazonia
without creating new waves of deforestation in the region.” 
In the form of $18 million in investments, which Alcoa has committed
to as its operating licence, the company will help provide much needed
infrastructure to the Juruti region. In addition, Alcoa will invest an
additional $30m in voluntary investments covering projects that include
the creation of a new regional hospital in Juruti as well as the expansion
of a preexisting hospital (prior to this, many people in Juruti had to travel
by boat for 12 hours to get medical attention).
In addition, the investments will foster the creation of two new technical
schools to teach residents skills to improve their career opportunities for
generations to come, and the creation of three deep-water wells for fresh
water needs. These wells provide cleaner water to the city residents and
will likely improve overall health conditions in the city.
Kleinfeld’s commitment to humanitarian goals is also personal and
he is proud that his employees feel the same way. In April 2010, he
received the 2010 Ripples of Hope Award from City Year New York for
his personal commitment. “This award from City Year belongs to all of
the Alcoa employees who volunteer alongside City Year Corps members
at PS 48 and at The Point Community Center in the South Bronx,” said
Kleinfeld, humbly acknowledging his team.
Approximately 90 per cent of Alcoa’s worldwide operating locations
now have community programmes, and Alcoa and Alcoa Foundation
invested more than $34 million in the communities in which the company
operates worldwide.
“Volunteering is a necessary part of creating a vibrant and dynamic 01 Can reclamation, Tennessee USA
corporate environment,” Kleinfeld says. “You see the many dimensions 02 Fabricated aluminum products,
of the people you work with and uncover aspects you hadn’t previously Samara Russia
been able to see. Ultimately, its a vital bonding experience for personal 03 Bauxite processing Juruti mine,
and collective growth.” Brazil
HEALTH

THE FIGHT
AGAINST
BREAST CANCER
ACROSS THE WORLD, CASES OF BREAST CANCER ARE INCREASING AS MORE WOMEN ARE
DIAGNOSED, BUT A RANGE OF INNOVATIVE PROGRAMMES ARE SHOWING THAT A POSITIVE
PROGNOSIS IS STILL POSSIBLE.
WRITTEN BY DOROTHY WALDMAN

IN 2010, over one million women will be

diagnosed with breast cancer and about half a million will die from the
disease. Once considered an affliction most likely to strike affluent white
women in industrialised areas of North America and Western Europe,
breast cancer is on the rise throughout the world, representing one in 10
cent in areas where adequate services are not available – in high income
countries fatality rates are less than half that.
COST OF NEW CASES OF
In emerging economies, breast cancer is a relatively new concern for BREAST CANCER BY COUNTRY
both women and medical professionals. Currently, the average woman
diagnosed in Kenya can only wait for her death; in South Africa only Total Cost (US$)

of all new cancers diagnosed and almost one in four cancers in women five per cent of cancers are caught in the early stages when they are most Australia 377,837,261
worldwide. curable; and Pune in India has only one comprehensive breast cancer Bangladesh 3,422,972
Today, nearly four million women are living with breast cancer and facility for the 3.5 million women it is supposed to serve, resulting in half China 176,821,281
many of these live in highly developed countries. However, by 2020, the of all the women going entirely without treatment. France 1,535,292,360
World Health Organisation anticipates a 50 per cent increase in cancer Mammography machines, the single most important tool in early Germany 2,089,246,140
and 70 per cent of all new breast cancer cases worldwide will be in detection, are available in the Ukraine, but a shortage of film requires Guatemala 2,421,188
developing countries. that doctors choose between taking the recommended two-view image of India 48,796,462
In countries with access to state-of-the-art diagnosis, survival rates are a patient’s breasts and taking a one-view image of twice as many women. Netherlands 404,546,601
beyond 80 per cent and closer to 90 per cent in some areas. In the United In Venezuela, some hospitals have the equipment for large biopsies, a Saudi Arabia 16,924,099
States, where one out of eight women will be diagnosed with breast sophisticated procedure for early detection, but the cost of actually using United States 16,097,364,800
cancer during her lifetime, an estimated US$68.1 billion is spent each it presents a prohibitive challenge, with one hospital reporting that the UAE 4,735,500
year to diagnose and treat the disease. procedure has not been preformed in three years. Unsurprisingly, more
The situation is different in much of the rest of the world. The number than 70 per cent of all cancer deaths occur in countries where resources
of patients diagnosed with curable breast cancer drops to about 50 per for diagnoses and treatment are limited or non-existent.

050
NOT JUST A
FEMALE PROBLEM
Often wrongly considered a disease that just
afflicts older women, breast cancer does not
discriminate according to gender or age.
Although it is about 100 times less
common among men than women and
its incidence in relation to the population
has remained stable in the past 30
years, approximately 2,000 men will be
diagnosed with breast cancer this year in
the United States alone, about one per cent
of total cases, and close to 400 men will
die from it.
The prognosis for men has generally been
considered worse than that for women, but
that is largely due to the fact men tend to get
a diagnosis at a later stage as they often do
not believe they can get it.
“Actually [breast cancer] is easier to find
in men,” says Dr Stanley Waintraub, of the
John Theurer Cancer Center in New Jersey.
“Men may ignore symptoms such as lumps,
pain in the breast or discharge from the
nipples.”
Recent research published online in the
Journal of Medical Genetics has revealed
that men, like women, who carry the BRCA2
genetic mutation, have a higher risk of
contracting the disease – 7.1 per cent by
the age of 70 and 8.6 per cent by the age
of 80 – so these men should be particularly
vigilant about early detection.
Richard Roundtree, known for his role as a
maverick, macho private investigator in the
film Shaft, thought doctors were questioning
his masculinity when he was diagnosed in
1993. “Every opportunity I get,” he says,
“I am very vocal about the fact that breast
cancer is not gender specific.”
Former Kiss drummer Peter Criss, known
as Catman, was treated for the disease in
2008 and has some sage advice for men
who discover a lump in their breast. “Don’t
sit around playing Mr. Tough Guy. Don’t
say: ‘It’s going to go away.’ It might not and
you might not see life anymore and how
beautiful it is,” he says.
This is a message that the John W Nick
Foundation, which provides support and
information on male breast cancer, hopes
men take heed of.

051
HEALTH

NO AGE LIMIT
Contrary to popular thought, it is not just
older women who need to worry about
older cancer, young girls are at risk, too.
A four-year-old girl, probably the youngest
case of secretory carcinoma of the breast
and one of only a few children around
the world to suffer from a malignant breast
tumour prior to puberty, was the youngest
breast cancer survivor to participate in
Toronto’s Weekend to End Women’s
Cancers in Cambridge, Ontario in
September. Last year, a 10-year-old girl in
California was also diagnosed with breast
cancer. Both of these brave youngsters
underwent mastectomies.
Thankfully such cases is extremely rare
and the disease is treatable.
Less rare is breast cancer in young
women. In the 15 to 39-year-old age group,
breast cancer accounts for about 25 per
cent of all cancers in females, which rises
to 39 per cent in the 35 to 39-year-old
age group. One in 20 women with breast
cancer are diagnosed before the age of 40.
Typically, early detection is less likely
in younger women and their cancers are
more aggressive than those found in older
01
women, resulting in lower survival rates.

Although the costs in terms of human suffering are incalculable,
measurable costs for medical expenses including hospital stays, surgery,
chemotherapy and radiation, associated non-medical expenses such as
travel expenses for treatment, specialized equipment and home services,
and loss of productivity are soaring as the number of cases diagnosed
escalates.
A report by the American Cancer Society found that cancer cost the
world US$896 billion in 2008, about 1.5 per cent of the world’s entire
gross domestic product. New breast cancer cases alone account for
US$28 billion in 2009, US$13 billion in medical costs, US$8 billion in
non-medical costs and productivity losses of around US$700 million.
The best possible way to deal with the costs of cancer “is not to have
Brazil and 20 per cent in China could be preventable through lifestyle
changes such as a reduction in alcohol intake, an increase in physical
GLOBAL INVESTMENT IN
activity and maintaining a healthy weight. CANCER RESEARCH, 2009
Interestingly, research by Cancer Research UK indicates that women
who migrate from low to high-risk countries typically also experience
increases in occurrence, suggesting a strong effect for lifestyle or 19,238
environmental factors. The roll of oestrogen in breast cancer has raised 4,244
the possibility that certain environmental contaminants, including PCBs GOVERNMENT
and pesticides such as DDT, that mimic the female hormone, may well 6,461
be involved. Cases of breast cancer amongst the residents of Seveso in
1,360
Italy who were exposed to a 1976 industrial accident and people living
in Chapaevsk in Russia, who suffered contamination from a nearby CHARITABLE

it in the first place”, says Dr Robert C Young, former president of the chemical plant also suggest a link between breast cancer and dioxins. 625
American Cancer Society. “So the focus on prevention makes great However, until breast cancer is eliminated as a threat, early detection 1,205
sense.” In 2009, global investment in cancer research was around US$19 is the best way to control costs with the best possible outcomes. A report
HEALTHCARE & UNIVERSITY SYSTEMS
billion. Organisations such as the Susan B Komen Foundation, which by the US Preventive Services Task Force announced a decline in cancer
149
funds breast cancer research, and the Zahra Breast Cancer Association death rates in the US by almost two per cent a year between 2001 and 2006,
1,870
bring awareness to combat breast cancer through education and support. which some consider the positive result of early detection as well as other
Although a genetic predisposition to breast cancer is evident, research factors. Interestingly, when the UK introduced its national screening 3,322
Funding
indicates that as many as half of all breast cancers occur in women who programme in 1988, there was a marked increase in the incidence of (US$m)
0 5,000 10,000 15,000 20,000
have no known specific risk factors, indicating that other factors must be breast cancer as previously undiagnosed cases were detected.
TOTAL PHARMA INDUSTRY (TOP 24 COMPANIES)
involved. Other than gender, age (81 per cent of cases occur in women Although there is a tremendous need to detect and treat breast cancer at US EU REST OF WORLD
aged 50 and over, with nearly half of all cases diagnosed in the 50-69 the earliest stage, these needs have to be balanced by the ability to provide
age group.), lack of or delayed childbearing and higher hormone levels these costly technologies and services, requiring innovative problem
appear to correlate to incidence. solving. As imaging and other diagnostic tools are made available
A 2009 World Cancer Research Fund report estimated that 38 per cent in underserved areas and as the world’s population ages, a backlog of
of breast cancer cases in the US, 42 per cent in the UK, 28 per cent in undetected cancers may be revealed.

052

02
03
01 Acuson X300 ultrasound, Siemens
02 Dr. Modi Batterjee, campaign
spokesperson and founding member
of Al Bidayah Center
02 New technologies from Siemens
help in the early detection of breast
cancer
Meanwhile, innovative schemes are necessary to increase both
awareness and positive outcomes. One such scheme is currently being
planned by the Africa Oxford Cancer Foundation to distribute Tamoxifen
to selected women who discovered lumps at breast-examination clinics
held in village churches as a precautionary measure, in anticipation of
stabilising or reducing the tumour burden in up to 50 per cent of the
patients, greatly reducing the overall costs of treating the disease.
In spite of the huge variations in detection and treatment, there is
still room for optimism. The increasing visibility of breast cancer due
to education and fund-raising initiatives has helped remove the stigma
and resulting isolation from the disease while enabling research that is
developing cures and discovering causes and means of prevention.
In a perfect world, there would be a cure, but until that time comes,
there is still much each of us can do to increase the odds for survival.
IN THE PINK
A record-breaking attempt at forming the largest female human chain
marked Saudi Arabias Zahra Breast Cancer Associations contribution to
the Kingdoms breast cancer awareness campaign in October 2010.
At the time of going to press, thousands had registered and the
Zahra Breast Cancer
Association was on
track to making history.
The attendance of
representatives from the
Guinness World Book of
Records was confirmed,
in witnessing and verifying
the formation of the worlds
largest female human pink ribbon chain.
Awareness is the first step in curing breast cancer, a disease which is
the leading cause of cancer deaths amongst women in Saudi Arabia.
According to the latest Saudi Cancer Registry report, more than
10,000 cases of cancer were treated here in one year alone, with
breast cancer accounting for 24 percent of treated cancer cases.
Breast cancer is a huge challenge for women in Saudi Arabia
- awareness and education about this disease is a key element in
curbing this challenge, said HRH Reema bin Bandar bin Sultan, who
heads up the important initiative. I am convinced we can help reduce
the spread of breast cancer in Saudi Arabia with early detection and
strong awareness campaigns.
HRH Reema explained the idea for the record attempt, which is part
of their campaign, A Womans Stand, is all about creating a unified
stand against breast cancer. I have had family members and friends
diagnosed with breast cancer, and this strengthened my determination
to become an agent of change and break this vicious cycle, she
said, adding that she first learned of the formation of the Zahra Breast
Cancer Association, the sponsor of this event, on the same evening as
a close friends breast cancer diagnosis.
Dr Modia Batterjee, spokesperson for the campaign, said that
although breaking the world record would be an important feat, the
awareness it has already built is key: The most important result is
educating people and helping to decrease the occurrences of breast
cancer in the Kingdom.
The female chain will be a symbol of womens strength, commitment
and support for one another. By attempting to break the world record
for the largest human awareness ribbon, we wanted to gain huge
public exposure and show people that when you stand together, great
things can happen, she said.
HRH Reema added: When people find out what we are doing and
why, they automatically ask us: How can we help? What can we do?
The support from the Saudi community has been great and we really
foresee the event as being a great success.
In addition to this highly visible event, the Zahra Breast Cancer
Association also organises numerous functions to educate and
create awareness about this disease, including educational lectures,
workshops and printed materials for women, along with scientific
training programmes for doctors and other health professionals.
There are a number of other schemes in the Kingdom also seeking
to raise awareness of breast cancer. These include an official breast
cancer awareness website, an early detection program and the Zahra
Touch boutique, which provides patients with prostheses, wigs and
other specialised items.
053
 THE BIGGER
PICTURE
MULTINATIONAL BUSINESSES ARE, OF COURSE, ALWAYS LOOKING TO TURN A
GETTY/GALLO IMAGES

PROFIT, BUT A GROWING UNDERSTANDING OF ENVIRONMENTALLY SOUND

PRACTICES BY SOME COMPANIES IS HELPING TO PUSH THEIR INDUSTRIES IN A
MORE SUSTAINABLE AND SOCIALLY RESPONSIBLE DIRECTION.
WRITTEN BY JOANNE MOLINA

054

LIVING in a healthy, sustainable environment should
not be a luxury. As the queries and analyses of the BP disaster in the
Gulf of Mexico continue, the global community has a renewed interest in
questioning where a business’s responsibilities lie in relation to complex
and interconnecting environment concerns.
The link between curbing factory emissions, utilising alternative
energy sources, mandating recyclable materials and maintaining
stringent policies against deforestation and the productive use of
agricultural resources are inexorably bound to addressing world hunger,
poverty, health and economic stability and growth. Given the elaborate
structure of investment, as well as a legal and financial commitment to
their stockholders, businesses must make difficult decisions to maintain a
positive balance sheet and address increasing ecological concerns.
Public outcry and the actions of international institutions that monitor
the flow and distribution of global capital and investment, such as the
World Bank, are necessitating the creation of new methods to ensure
both corporate and environmental stability.
In September, the World Bank announced the appointment of
01 Daniel Kammen, Professor in the professor of energy Daniel M Kammen of the University of California,
Energy and Resources Group Berkeley, as the organisation’s Chief Technical Specialist for Renewable
02 Philips Master LED Green Products Energy and Energy Efficiency. This new position was created to provide
strategic leadership on policy, technical and operational fronts in order to
enhance the impact of the Bank’s renewable energy and energy efficiency
“REAL PROGRESS activities, as well as to expand its role as an enabler of related global
dialogue.
CAN ONLY BE However, some of the world’s top global corporations are also leading
MADE IF ALL the field with conscious and determined efforts to adopt technological
and industrial standards and practices that accommodate or even exceed
STAKEHOLDERS the bars set by third-party environmental analysts.
TAKE UP THEIR
ENERGY
RESPONSIBILITY.” “One of the biggest challenges for our society and, thus, for our industry,
is to improve the quality of people’s lives – particularly in new and
emerging markets – while managing the resulting ecological footprint,”
says Henk de Bruin, head of the corporate sustainability office for Philips.
The Netherlands-based Philips is a diversified health and well-being
company, a world leader in healthcare, lifestyle and lighting.
De Bruin cites the United Nations’ Millennium Development
Goals as being a crucial guidepost for the company’s environmental
advances. “With only five years left until the 2015 deadline to achieve
the Millennium Development Goals, Philips strongly supports this call to
action. We believe that affordable, accessible and accountable healthcare
solutions with a light ecological footprint are essential contributions to
reaching these UN goals,” he says. This “light ecological footprint” is
another industry challenge requiring constant improvement, and energy
and materials are key elements in this process.
Philips’ philosophy of environmental responsibility has evolved over
the past few decades and broadened its scope, beginning with energy,
waste, water and emission management in manufacturing, followed by
green product development, supply chain management and collection
GETTY/GALLO IMAGES
and recycling. Provided this is properly and consistently managed by
02 dealing with reputational risks and business opportunities in a balanced
way, there is no principal conflict attending environmental needs and the
needs of a business. By embedding environmental and social challenges
CORPORATE RESPONSIBILITY
01
in its strategy, a company can even become an engine of growth. There is
evidence of this with the Philips Green products proposition, currently
contributing to more than 30 per cent of Philips’ sales.
To further address these challenges and the timely guidelines of the UN,
Philips launched its EcoVision5 programme, with the following three
main targets for 2015: first, to bring care to 500 million people; second,
to improve the energy efficiency of their overall portfolio by 50 per cent;
and third, to double the amount of recycled materials in its products, as
well as doubling the collection and recycling of Philips products.
De Bruin also explains the recent re-evaluation of how companies are
choosing to tackle environmental issues. “The challenges for combating
environmental concerns in general over the last decades – not specific
to our industry or to Philips – were related to the erroneous perception
that focusing on finding environmental solutions costs money, at the
detriment of economic benefits,” he says.
In the marketplace, being publicly amenable to these concerns was
generally frowned upon because it was perceived as catering to needs
other than business. “Businesses that paid attention to the impact of
their activities on the environment and on society were pegged as ‘soft’.
Fortunately, this perception issue is shifting. Focusing on environmental
and social issues, or what we simply call sustainability, now is becoming
a mainstream business consideration and an expectation from customers
and stakeholders,” de Bruin says.
However, according to de Bruin, responsibility for the environment
lies not just with international agencies or corporate initiatives. “Real
progress can only be made if all stakeholders take up their responsibility,”
he suggests.
This includes a combination of responsible agents: business, non-
government organisations and consumers. “Governments can facilitate
a level playing field for business and citizens. Non-governmental
organisations can influence governments, business and the public at large.
Customers can take these various forms of information into account in
their purchasing behaviour and business can provide solutions for their
needs – closely following trends and carrying out market research by
taking environmental aspects into account,” de Bruin says.
055
“THE MORE INTENSIFIED DAIRYING
BECOMES, THE MORE CARE WE
NEED TO TAKE TO MITIGATE THE
RISK OF ENVIRONMENTAL IMPACTS.
NEW ZEALANDERS ARE VERY
ENVIRONMENTALLY AWARE AND
WHILE THEY ARE VERY CONSCIOUS
OF FONTERRA’S MAJOR ROLE IN
THE ECONOMY, THEY ARE NOT
PREPARED TO SEE ENVIRONMENTAL
VALUES TRADED OFF FOR
ECONOMIC GAINS.”
PASTURES NEW
“Farming, by its very nature, relies on the environment for its survival
and while practices have certainly changed over time there has always
been a fundamental understanding that we have to treat the ecosystems
that support our industry with the greatest of care,” says Andrew Ferrier,
CEO of New Zealand-based company Fonterra.
Fonterra, New Zealand’s largest company with an excess of $11.7 billion
in revenue, is a cooperative, wholly owned by farmer shareholders. In
a country that exports 95 per cent of the milk it produces, Fonterra is
responsible for 95 per cent of all national dairy exports and accounts for
a quarter of New Zealand’s total exports. Its the biggest supplier to the
globally traded market for dairy, exporting more than two million tonnes
as of July 2010, and it is the largest dairy processor in the world.
“We have a major role in meeting dairy demand globally and there is
no sign of that demand abating. The global population has quadrupled
over the past 100 years. The World Health Organisation is forecasting
that the demand for food will double by 2050 – just 40 years away. Dairy
is nutrient dense, so it will have a critical role to play in nourishing the
world’s growing population, but this cannot be done at an unacceptable
environmental cost,” Ferrier explains.
In a typical year, Fonterra collects approximately 20 billion litres of
milk – around 14 billion litres in New Zealand. It processes products
at roughly 28 sites in New Zealand and have another 60 sites around
the world, 10 of them in Australia. Two-thirds of its revenue is dairy
056
01
ingredients and it sells to 140 countries – every continent in the world 01 Andrew Ferrier, CEO of Fonterra
except Antarctica. One third of its revenue is consumer products, which 02 Marco Tronchetti Provera,
have leading positions in consumer dairy in Australia, Asia, the Middle chairman of Pirelli
East and Latin America.
“Whichever way you look at our business, there is one inescapable
conclusion: we have to be sustainable, both environmentally and
economically. To produce in-demand dairy products, farmers need to be
confident of making a return, but they also need to be confident their land
can sustain higher production, so our relationship with the environment is
something we take very seriously. Sustainable co-operative performance
is a major component of our growth strategy,” Ferrier says.
New Zealand’s natural geography allows dairying to be increasingly
regarded as the most profitable use of agricultural land. Unlike many
parts of the world, where cows are housed indoors and fed grain, the
country’s herds are predominantly grass fed from farm pastures. This is
viewed by Fonterra as a major competitive advantage, both in terms of
production costs and the value consumers place on products from “clean,
green” New Zealand – but it does impose environmental challenges.
On farms, for example, the focus is on practical steps farmers can take
to protect water quality, such as excluding stock from waterways, riparian
planting, nutrient budgets which minimise fertilizer use and adopting
best-practice irrigation techniques in full compliance with management
regulations. Fonterra spends around $5 million a year supporting farmers
 CORPORATE RESPONSIBILITY

with on-farm sustainability advice. It also funds research across a broad range
of areas, including forage research to produce grasses that support higher
milk production per hectare, genetic research to improve the productivity of
herds and research to develop science-based tools to reduce nutrient losses.
“The more intensified dairying becomes, the more care we need to
take to mitigate the risk of environmental impacts,” Ferrier says. “New
Zealanders are very environmentally aware and while they are very
conscious of Fonterra’s major role in the economy, they are not prepared
to see environmental values traded off for economic gains.”
Climate change is another challenge Fonterra is prepared to tackle.
“We have the challenge of growing production to feed a rapidly growing
world population without exacerbating climate change. Globally, dairy
emissions account for 2.7 per cent of total greenhouse gas emissions.
That’s relatively low, but nonetheless, the dairy sector recognises that
improving our carbon footprint is a key element of sustainable milk
production,” Ferrier says.
For Fonterra, this is a very topical issue given New Zealand’s response to
climate change is the introduction this year of an Emissions Trading Scheme.
From 2015, this will include agricultural emissions – it is the only country in
the world currently making this commitment and it is a significant one given
our greenhouse gas profile, where agriculture accounts for 47 per cent of total
emissions (with dairying 19 per cent of those).
Fonterra’s response has been to take the lead by definitively determining
the carbon footprint of its major export products. This has enabled it to
identify where emissions reductions efforts should be directed – which
is primarily on farms, where 85 per cent of emissions in their carbon
footprint occur. It is also driving down emissions in the business. Its
energy reduction project, one of the largest energy efficiency programmes
in New Zealand, saved 320,000 tonnes of carbon dioxide, equivalent
“GLOBALLY, WE relative to 2003 levels, last year.
“As a cooperative, our farmers are our stockholders as well as supplying
MUST ACT ON the raw ingredients for our global production company. We do not view
THREE FRONTS: WE the environment as something separate from our business, it is our
business and because of this innate connection to the land environmental
MUST CLEAN UP responsibility is at the core of everything we do,” Ferrier says. 02
ENVIRONMENTAL Environmental responsibility for Fonterra is also a form of civic
responsibility. “This responsibility is shared throughout the organization,
DAMAGE CREATED from the grassroots farmers to the top management team and we take MOTORING ON
IN THE PAST, WE our leadership position very seriously. Being the largest and most “I believe it has become clear that all of us on the planet have a great
visible company in a relatively small country like New Zealand puts us responsibility toward future generations, one that cannot be put off
MUST LIVE AND constantly under the spotlight and New Zealanders rightly demand the until some later date when it is more convenient. People currently in
MANUFACTURE IN highest standards of environmental custodianship, regardless of how leadership positions must take this responsibility especially seriously,”
many export dollars we bring in the door,” he asserts. argues Marco Tronchetti Provera, chairman of the Milan-based Pirelli,
A SUSTAINABLE But there are still incredible challenges that Fonterra will have to a company active in the tyre and real estate sector among others. It is a
WAY, LIMITING face in the future. “The greatest challenge between agriculture and the premier supplier to the automotive industry, which pollutes heavily, and
environment is going to be feeding a global population that is forecast to bears responsibility for investment in the future.
NEW DAMAGE TO reach seven billion next year and nine billion by 2050,” Ferrier reveals. “Globally, we must act on three fronts: we must clean up environmental
THE ENVIRONMENT, “That’s an extra two billion people to find food, water and shelter for over damage created in the past, we must live and manufacture in a sustainable
the next 40 years in a world that is already pushing past the limits of what way, limiting new damage to the environment, and we must invest in
AND WE MUST we can safely sustain.” innovation to discover new paths for a sustainable future,” Provera explains.
INVEST IN It’s Fonterra’s view that in order to feed the burgeoning global At Pirelli, the philosophy is for the company to take responsibility for
population in the years to come, trade barriers need to come down and itself on each front, along with its stakeholders. “With consumers, we
INNOVATION TO subsidies be removed so that inefficiencies in the agricultural industry are must educate them and offer them environmentally friendly products
DISCOVER NEW worked out of the system. The company has built a substantial knowledge at an affordable price. We have an obligation to our stockholders to do
base on how to do this and is keen to share it with the world. It is working business correctly and for a profit, and our approach to this is to focus on
PATHS FOR A with other producers around the globe to help bring nutrition to people quality and innovation,” Provera says.
SUSTAINABLE for the least economic and environmental cost. “Quite simply, our future “With our suppliers, we are very selective and we require them to
survival depends on it and that’s a challenge we think is worth putting be sustainable, too. With our local stakeholders, we are attentive to the
FUTURE.” our good name on,” Ferrier says. communities where we are based and fund hospitals, universities, social

057
CORPORATE RESPONSIBILITY
welfare and environmental projects. And, of course, we are attentive
to the health, safety and well-being of our own workers. We believe
responsibility for the environment lies with everyone and we begin at
home.”
Pirelli has always been focused on the environment and acted early to
create a sustainability steering committee and a corporate sustainability
department, which guides it in everything it does. “We have devoted
scientists and engineers researching how to clean up the environment
and exist in a more sustainable way, and we have registered patents
for such things as turning city waste into clean fuel and filtering diesel
emissions to eliminate tiny particulate matter that pollutes and causes
cancer,” Provera says.
“We have consistently upgraded and rebuilt our factories, and built new
factories with attention to energy and water savings and low emissions.
Our newest factory, which will begin production next year, will be solar
powered and will be built with special smog-eating cement.”
Europe has set quality standards for tyres in terms of fuel consumption,
as well as safety and noise levels. “We apply these standards all over the
world, whether or not governments are calling for them. We are rolling out
new fuel efficient tires, including creating a new segment of ‘green’ tyres
for SUVs and developing cyber-technology so that a chip will be able to
communicate asphalt conditions to the car through the tyre, thus both
increasing safety and improving environmental impact,” Provera says.
“We are eliminating pollutants like highly aromatic oils and we are using
sustainable materials. Our research focuses on ‘green performance’, which
means solutions that are both environmentally sound and high-performance,
including standards for racing tyres. By the end of 2011, 40 per cent of our
revenue will be generated from environmentally friendly products.”
Even so, cost-effective solutions to environmental challenges are still
as much of an issue for Pirelli as they are for the rest of the automotive
058
industry. “That is where governments come in,” Provera says. “For
example, as long as petroleum-based energy is cheaper than solar
“THE CONSUMER
or wind power, companies trying to sell alternative energy will not IS NOT ALWAYS SO
succeed. Governments need to support the research needed to make
clean technology cheaper and they need to help transitions take place by
ENVIRONMENTALLY
setting standards and forcing change in industries, and in some cases by SENSITIVE AS
footing the bill.”
Provera also notes that consumers have to be amenable to
TO SPEND MORE
accommodating these challenges. “The consumer is not always so MONEY FOR A
environmentally sensitive as to spend more money for a product that is
better for the planet, so this is an area where the free market needs a
PRODUCT THAT
little boost from governments.” But he also adds that “the challenges for IS BETTER FOR
Pirelli are often bureaucratic: too many different regulatory standards,
too many jurisdictions to register the same patent in, high costs, high
THE PLANET, SO
taxes, uneven competition. But we are a company that has always been THIS IS AN AREA
driven by research and development, and this will continue.”
Pirelli’s enthusiastic attitude towards innovation is also a part of its
WHERE THE FREE
risk-prevention philosophy. “Such truly unfortunate disasters, such as MARKET NEEDS A
the BP disaster, confirm my conviction that governance based on strong
risk prevention is a must. Companies should be able to ensure they are
LITTLE BOOST FROM
doing their utmost to prevent any potential negative environmental or GOVERNMENTS.”
social impact that could be caused by their activities,” Provera says.
He is very philosophical about the past, present and future of the
industry and Pirelli’s forward-thinking strategies. “I, myself, cannot yet
imagine a world without driving, a world without automobiles, or a
world without oil extraction,” he says. “We thus need to work with what
we have, focusing more and more on research not only to simply develop,
but to develop in a sustainable way. Technology is a good thing; it is the
key to finding sustainable solutions. I am confident that if we focus our
efforts and resources in this direction we will find them.”
PLANET

Charuplaya treefrog (Hyla callipleura)

Manu National Park, Peru

060
 ENVIRONMENT

A M “Anyone who believes

exponential growth can
go on forever in a finite

S A world is either a madman

or an economist,” activist
and economist Kenneth E

S N Boulding once famously

quipped. Scientists and
a new breed of green-

E A minded leaders have

been fervently warning

T G
businesses, governments
and consumers for the past
decade that the earth has

E
DESPITE DIRE
reached maximum capacity
PREDICTIONS – and change has to come
REGARDING THE and come soon, or else.

M
LOSS OF THE EARTH’S
BIODIVERSITY, THE
WORLD WILDLIFE
FUND CONTINUES
TO BE AN ARBITER OF
Were Boulding alive today, he would likely have expanded his analysis
to include all nations, corporations and consumers, who believe we can
continue along the route of unabated global consumption. The day the
planet exhausted its renewable resources officially arrived on August 21,
2010, with human consumption being financed for the remainder of the

E
year by digging into the planets non-renewable reserves – and by 2050
CHANGE, AND MORE society will need two planets to keep up with the current demand for
CORPORATIONS AND goods and services.
GOVERNMENTS ARE “If you spent your entire annual income in nine months, you would
probably be extremely concerned,” says Mathis Wackernagel, president
NOW THROWING

N
THEIR WEIGHT BEHIND
ITS EFFORTS.
WRITTEN BY LISA VINCENTI
of Global Footprint Network, a California-based environmental research
organisation that tracks global biocapacity against human demand. “The
situation is no less dire when it comes to our ecological budget. Climate
change, biodiversity loss, deforestation, water and food shortages – these
are all clear signs that we can no longer finance our consumption on
credit. Nature is foreclosing.”

T
Today, according to Global Footprint and UK-based think-tank nef
(the New Economics Foundation), which have developed a measure
of the world’s ecological footprint, humanity requires the equivalent of
1.5 planets to provide the resources consumed yearly and absorb waste.
They say that our use of more than the earth can renew has resulted in
everything from climate change and greenhouse gas build-up to species
extinction, biodiversity loss, depleted fisheries and soil erosion. A crisis
is at hand and the World Wildlife Fund (WWF) is stepping up efforts

061
PLANET
01
to reverse this course, enlisting the aid of businesses and governments
around the world.
“The next few years will be a critical period for the future of our planet,”
says Jim Leape, director general of WWF International. “We have huge
challenges ahead of us, but I’m confident that we can rise to them.”
In fact, the WWF, a non-governmental agency founded in 1961, has
named 2010 the International Year of Biodiversity. “[It is] a year when
the world will set new targets to protect and conserve our environment
for people and nature,” according to Chief Emeka Anyaoku, its former
president. Those goals include reducing the world’s global footprint to
pre-2000 levels by 2020; with an overall target of staying within earth’s
capacity by 2050. No easy feat considering that the Swiss-based agency
saw revenues drop by $4m to $598m last year.
NONETHELESS, it continues to devote more expenditure on
conservation efforts. And, perhaps more importantly, is that corporate and
government support of the WWF agenda continues to grow – signaling
that a shift in attitude toward the state of the environment and society’s
impact on it, is taking place among top business leaders and policy makers.
Since 1985, the WWF has invested more than $9bn in more than
11,000 projects, spending $366m on conservation programmes in 2009
(the most recent figures available), up from $302m in 2008 and $286m
in 2007. This comes amid a decline in income from $684m in 2007 to
$598m in 2009, a time period that saw record increases coming from the
corporate (up to $70m in 2009 from $68m in 2007) and government (up
to $130m from $99m for the same period) sectors.
062
Today, it is not merely society’s impact on the environment making
headlines, but also the effect of a depleted planet on well-being and
“Just as a few lonely
health. Lifestyles are changing and consumers in more developed regions economists warned us
are returning to the basics, where sustainable, environmentally friendly we were living beyond
products, be they grown at local farms or purchased from high-end
luxury goods makers, are becoming mainstream requirements. No longer
our financial means
does being an environmentalist mark one as a member of a fringe group. and overdrawing
As a larger slice of the consuming public has begun to insist on a our financial assets,
proactive approach to sustainability with regards to the products and
service they purchase, forward-thinking corporations have adopted new
scientists are warning us
strategies in response. More and more in the business community are that we’re living beyond
beginning to view sustainability and environmental conservation not as our ecological means
a cost to the bottom line but as a way to drive future profitability and
ensure survival. However, time is running out – and quickly.
and overdrawing our
“We have only this generation to get sustainability and the environment natural assets.”
right,” Leape notes. Plants, animals, fungi and microorganisms form
a complex, interconnected web of ecosystems and habitats providing
humanity with clean water, breathable air, food, medicine, energy and
more. There are already millions of people around the world who are
feeling the consequences, in rich and poor countries alike. Power
shortages, uncertainty over food security and water availability, and
increased vulnerability to natural disasters and diseases are making
headlines on a daily basis.
“Just as a few lonely economists warned us we were living beyond
our financial means and overdrawing our financial assets, scientists 01 Drought in french guiana-
are warning us that we’re living beyond our ecological means and mangrove tree

02
01 Local woman at Mekong river near South
Vietnam 02 In the last 10 years we have lost
nearly half of all our wild tigers 03 Icebergs in
Northeast Greenland 04 World Wildlife Fund
wetlands conservation programs help individuals
01 earn a living
overdrawing our natural assets,” argues Glenn Prickett, senior vice-
president at Conservation International, a Washington DC-based
organisation that works with governments and companies (including
Starbucks and Wal-Mart) to make conservation part of their business.
“Mother Nature doesn’t do bailouts.”
The global financial crisis of 2008 has morphed into something far
larger than merely serving as a marker of a major worldwide recession.
It has become a symbol of what is wrong with our current economic
model – a model where success is measured on an unsustainable
model of growth based on production. Furthermore, it has witnessed a
rethinking among some economic analysts and players who now ponder
the fundamental nature of what it means to be successful not only as a
business or nation but as society as a whole. Using strict measures such
as gross domestic product, sales or even new store openings is antiquated
to these forward-thinkers. They say that these markers fail to take some
of the most important, though far more difficult to measure, criteria of
success into account, including well-being and happiness.
“The GDP suited a different era and now we need a metric for our times,”
says Nic Marks, a fellow at the London-based New Economics Foundation
and founder of its Centre for Well-Being. “During the Second World War,
05
production was important. After the war was the need for rebuilding. We’re
05 Leonardo DiCaprio way past that. We need to account for our ecological footprint and see how
we’re operating on the planet. The GDP is often precisely wrong in that it’s
not measuring progress, just the making of stuff.”
The foundation developed a new marker for measuring the success
of nations, which it has dubbed the Happy Planet Index. HPI combines
ENVIRONMENT
03
04
economic metrics with indicators of well-being, including subjective
measures of life satisfaction, which have become quite sophisticated (HPI
uses data from Gallup, World Values Survey, and Ecological Footprint).
The index assesses social and economic well-being in the context of
resources used, looking at the degree of human happiness generated per
quantity of environment consumed.
“HPI is striving to measure a better future,” Marks says, adding that one
appeal of the GDP, has been that it presents a simple message: up is good;
down is bad. “HPI is trying to mirror that simplicity, using one number
as a headline indicator.”
As a steward of sustainability and environmental conservation,
the WWF has undertaken an massive campaign to further it’s agenda
of conserving biodiversity and reducing society’s impact on the
environment. “Businesses realize that their supply chain can be at risk if
they are using natural resources that are depleting fast, and particularly
vulnerable to cost volatility,” notes WWF’s Jennifer Meunier CHANGE
TO Eleni Androulaki. “Moreover, companies realize that they can reduce
costs by being more sustainable – for example, using more energy
efficient buildings results in reduced CO2 emissions and lower energy
costs. Companies also stand to gain additional benefits from proposing
sustainable products to consumers – including an improvement of their
overall image.”
Yves Manfrini, a fund manager of Union Bancaire Privee, Switzerland,
adds: “In a world of shrinking resources, those who first recognise the
need for sustainability and adopt appropriate strategies will succeed best
in future global competition.”
063
AUTUMN TONES

Amouage’s Oriental Oud candle from the new Oud home

collection imbues interiors with the woody fragrance of
Agarwood, evoking the intoxicating scent of autumn.
Available from Gazzaz, 30th St AKA Prince Sultan Bin
Abdulaziz St, Riyadh; amouage.com

For after hours

glamour, Valextra’s
Handy clutch bags are
well worth the trip to
Milan. This seasonal
triumvirate of navy,
ocra and marasca
offers the ideal match
for any ensemble;
valextra.it

AUTUMNAL TONES INSPIRE A WINTER

RICH IN COLOUR. STAND OUT IN THE
MOST DAZZLING HUES OF THE SEASON.
WRITTEN BY ASHLEE BEARD

FALL FOR COLOUR

TRENDS are notoriously cyclical, and as forecasters astutely point out,
during times of economic struggle, fashions become brighter and designs
become bolder. Manufacturers turn to chromatherapy in an attempt to
coerce customers back into retail therapy, luring us with warm autumnal
tones, from deep Bordeaux and russet reds, to invigorating tones of apple
green and orange – a favourite this season. Each shade plays an important
psychological role as tools to instil calm, energy – even productivity –
as commercial interior design teams and leading corporations have
discovered. Strength, power and leadership, make a bold statement this
season.

Creative Cycle’s unique custom-built Battle

Axe, created by master bike builder Doug
Keim, is the ultimate road warrior.
Made to order; creativecycles.com

064
Encased in walnut, Tivoli Audio’s new
anniversary model, the Model 10 table radio,
brings you the the best sounds of the season.
Tivoli Audio M10, Available from Dubai Audio
Centre Sheikh Zayed Road, PO Box 32836;
dubaiaudio.com

Protect your coveted iPad in the tones and

textures of the season with Tod’s calfskin and
crocodile iPad cases.
Ground Floor Centria Mall, Olaya Street,
Riyadh; tods.com

Chloé’s Darla epitomizes the

sophisticated femininity of the
celebrated French fashion house.
Finished in soft calfskin in the colours of
the season, these chic little numbers are
Stylish storage comes courtesy of Dutch artists
the ideal office accessory.
Scholten & Baijings for Established & Sons, ideal
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Four, Shuwaikh Industrial Area, Mahdi
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Belt up in Aquascutum’s
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065
 Walnut with sycamore marquetry marks out master cabinet maker
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With Montblanc’s limited

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SHO
JI FU
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4

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Gucci’s Winter 2010 Obviously Scandinavian design
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066
 AUTUMN TONES

Warm mahogany tones single out Riva’s new Aquariva by

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The limited edition Aquariva by Marc Newson is available
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067
068

EXPERTS PREDICT THAT THE WORLD TRAVEL MARKET WILL CONTINUE TO GROW,
AND TOURISTS AREN’T SKIMPING. THINK DISCLOSES THE INSIDE TRACK ON
FUTURE TRAVEL TRENDS AND THE FINEST NEW HOTELS ACROSS THE WORLD.
WANDERLUX
PACK your bags; next year will be the year to travel. At the
start of 2010, we reported that the Middle East was to defy the recession
with a host of new luxury hotel openings, legacies of the boom years.
While it has been true that properties have been plumping their pillows
and opening their doors across the world, the question on everyone’s lips
has been whether there is enough demand for five-star travel to keep
them in business.
Traditionally, high-end hotels are kept alive by a healthy mix of
executive and wealthy leisure travellers. Over the last couple of years
corporate and domestic purses have been snapped firmly shut and jittery
hoteliers and commentators wondered if things would ever be the same
again.
Travel slumped in 2009, falling by around 13 per cent across the region,
leading the World Travel & Tourism Council (WTTC) to gloomily claim
at the outset of 2010 that it was likely to be a flat year for travel, pointing
out that international airlines saw passenger numbers dip dramatically.
But it seems that things are on the turn.
According to the UN World Tourism Organization (UNWTO),
international travel has jumped seven per cent, but the Middle East has
led the pack with a 20 per cent growth in tourist numbers. Whatever
the realities of this year’s performance, both the WTTC and UNWTO
agree that the tourism market will grow steadily over the coming decade,
starting next year.
Perhaps buoyed by this news, the new project announcements that have
been so scarce this year have begun once again. Notable in the Middle East
is Orascom Development’s news that it is to splurge US$245 million on two
Four-Seasons managed hotels, slated to be ready by the end of 2011.
That the hotels planned are Four Seasons properties is a sign that there
remains an appetite for luxury travel. In fact, high-end hotels have seen
the most demand and are back up to the levels of three years ago after
occupancy in these properties increased by 10 per cent in the first half
of 2010. Here in the Middle East, a recent survey by STR Global shows
that 49.7 per cent of hotel rooms under construction in the region are
‘luxury’ and ‘upper upscale’. Marriott Hotels has reported second quarter
profits that beat expectations and anticipates that room rates will likely
rise again by the end of the year when corporate bookings resurge. The
willingness to splash out on luxury trips is a sign that people are once
again confident in their financial stability.
Paul Nelson, spokesman for the World Travel Market, says: “The global
CastaDiva Resort financial downturn has seen a number of people switch from quantity to
LUXURY TRAVEL
quality. Holidaymakers are reducing the number of holidays they take
but up-grading the quality of accommodation they stay in.” That has
meant an increased demand for all-inclusive packages in five-star resorts:
Travellers are prepared to spend on their holidays but they don’t want to
pay for hidden extras.
Dr. Rag. Gabriele Zerbi, CEO of H.r.c, (CastaDiva), a luxury hotel
chain on the shores of Italy’s Lake Como, is in accord: “The five-star
luxury sector is not affected by the crisis. This may not be the same for
the three and four-star properties, but the fact that there are very few five-
star luxury properties in Italy protects this sector.”
He also believes that luxury is also evolving. “Today there is a new
concept of luxury; a type of luxury that’s younger, less formal and less
rigid. Dynamic, cultivated people nowadays want to have their emotions
stimulated, they want new experiences but, more than anything, they
want a service that matches their individual personality.”
Tourists are predicted to roam domestically and internationally, short
and long-haul, as households up their spending on holidays having
reined themselves in last year. But, unfortunately for airlines, they’re
likely to continue their disfavour for business class, with the vast majority
of leisure tourists saying that they will continue to fly economy and more
business customers sticking with premium economy tickets.
Not that carriers have been disheartened. Middle Eastern airlines are
capitalising on the weakness of their Western counterparts and growing
at a staggering speed. Emirates put in a US$9.1 billion order at this year’s
Farnborough Air Show and forges ahead with a dedicated terminal for
its A380s at Dubai Airport. Etihad Airways posted double-digit growth
for the first half of 2010. Qatar Airways has orders and options for 178
news planes and plans to go ahead with 15 new destination launches in
the coming 12 months.
Not to be outdone, Western airlines are pursuing a vigorous mergers
and acquisitions frenzy to adapt their business models to a new world
travel order. United and Continental have been approved to form a ‘super
airline’; BA has merged with Iberia and eyes other potential take-overs in
a bid to keep up, despite being troubled by industrial action; Lufthansa
has acquired three additional European airlines and anticipates that
international mergers will continue apace.
With hotels and airlines aligned in their determination, all that remains
is a mighty tussle for market share. Travellers should take full advantage
as the airlines and hotels attempt to woo customers with attractive offers
and benefits.
069
LUXURY TRAVEL

01

070

01 Praia de Luz – elegant lounge bar
at Park Hyatt Goa Resort and Spa
02 CastaDiva Resort hammam
03 Fine dining in Hotel Verta
Q The travel and tourism industry employs
approximately 235 million people and
generates over 9.2 per cent of world GDP
Q From 1950 to 2005, international tourism
arrivals expanded at an annual rate of 6.5
per cent, growing from 25 million to 806
million travelers.
Q In 1950 the top 15 destinations absorbed
88 per cent of international arrivals; in
2005 that figure was down to 57 per
cent, reflecting the emergence of new
destinations, many of them in developing
countries.
Q By 2020 international arrivals are
expected to surpass 1.5 billion people.
Many of these are expected to be retired
Baby Boomers.
Q The five most visited countries last year
were, in order, France, USA, Spain, China
and Italy.
02
LAKE COMO, ITALY
The CastaDiva is the chicest five-star resort to open on the shores of
Lake Como in a century. A short 55km drive to the heart of Milan, the
CastaDiva is gaining in popularity with those in search of a less formal,
individual destination for those in the know. The former lakeside
residence of the famous opera singer Giuditta Pasta, the luxury resort
brings a new dimension to the Como hospitality landscape.
Nestled in the gardens are secluded luxury villas, apartments and even
a spectacular independent duplex fit for a rock star. George Clooney, still
one of the Lakes’ most celebrated celebrities, and his Italian television
personality girlfriend have already tried and tested it.
The piece de resistance, however, is the 1300 square metre spa, which
has been conceived to resemble the set of a James Bond movie.
The dual occupancy thematic spa suites are perfect for honeymoon couples.
The floating swimming pool and deck, which converts into a magnificent
show fountain at night, adds to the romance of the idyllic resort.
Book into: CastaDiva Resort, part of the Tais Collection
Where: Lake Como, Italy
Why: Contemporary operatic style resort – the newest five-star luxury resort
to open in Italy this summer.
Contact: +39 31 32 511, www.castadivaresort.com
CAPE TOWN, SOUTH AFRICA
The Delaire Graff Estate is an established destinction that reflects the
wealth of South Africa’s diamond and wine trades. Owner Laurence Graff,
founder and Chairman of Graff Diamonds, bought this estate straddling the
Stellenboch and Franschhoek districts and vowed to turn it into one of the
leading restaurants and boutique hotels in the world-famous vineyard region.
He’s done a good job. You’ll find a delicious series of 10 private lodges set
against breathtaking hillsides with all the facilities you and your party could
need. Choose from a two-bedroom Owner’s Lodge with log fireplace and
private heated pool, or cosy up in a smaller one-bedroom lodge, also with
03
its own pool and butler’s kitchen – some even have views as far as the iconic
Table Mountain. Privacy is assured by delicate hedges of camellia and coffee
jasmine and you can enjoy guilt-free indulgence, safe in the knowledge that
every effort is being taken on your behalf to minimise water and electricity
consumption. And if you like the artwork, ask Graff for more details – all the
pieces have been selected from his private collection.
Back in the main lodge, you can take advantage of a private dining
room, conference facilities and even a boutique cinema.
Book into: Delaire Graff Lodges & Spa
Where: Cape Town, South Africa
Why: The best views in the Stellenboch
Contact: +27 21 885-8160, www.delaire.co.za
GOA, INDIA
Spread over 46 acres, the Park Hyatt Resort and Spa, conceptualized as an
Indo-Portuguese village, resembles a lively picturesque town full of fragrant
plant-filled courtyards and gardens, linked by Venetian canals, bridges and
cobbled streets. The hotel blends vibrant elegance with high drama to recreate
the cheerful and relaxed atmosphere of a small Goan village.
At the heart of the resort village, a collection of four recently refurbished
plaza restaurants offers a variety of culinary delights, each with a select
menu of authentic food and lively open kitchens, as well as indoor and
outdoor seating. An in-house cinema provides evening entertainment for
those who have time on their hands and prefer the indoors. The warm
décor of the rooms, with a sunken mini swimming pool and outdoor
shower, make them unforgettable.
Book into: Park Hyatt Goa Resort and Spa
Where: Goa, India
Why: Its distinctive Indo-Portuguese style, excellent facilities and warm
ambiance
Contact: +91 832 272 1234, goa.park.hyatt.com
071
LUXURY TRAVEL
LUANG PRABANG, LAOS
Most people wanting a taste of South East Asia make a beeline for Thailand,
but to do so is to spurn one of the most regal cities of the region. Luang
Prabang, the cultural and spiritual capital of Laos, is found on the banks
of the Mekong River, which snakes languidly towards the sea. As a former
colony, the city boasts a fusion of laid-back French-Laotian culture, with
coffee and croissants sitting alongside golden-roofed temples amid the
jungle. There is nowhere better to stay in the city than the Alila Luang
Prabang. Built on a heritage site, it channels colonial sophistication
without forsaking any modern luxuries. Secluded but just 10 minutes
from town, you can retreat to a sanctuary of plush calm after a busy day
exploring and enjoy tranquil gardens, real fires, natural spa therapies and
gourmet meals. There are only suites here, all of which open onto either
a private garden, pool or pavilion – two even have exclusive tower access
for the ultimate in panoramic dining.
Book into: Alila Luang Prabang
Where: Luang Prabang, Laos
Why: Perfectly combines luxury with cultural distractions and outdoor pursuits
Contact: +856 71 260 777, www.alilahotels.com/luangprabang
LONDON, UK
The Von Essen group of hotels counts amongst its properties a Castle
frequented by Britain’s Henry VIII so you can be pretty sure that you’re going
to encounter something special when you book in. The newest to launch is
the Hotel Verta in the heart of London. Sitting alongside the London Heliport
in Battersea, it might be one of the best aerially connected spots in London,
perhaps excluding Heathrow airport, which would be significantly noisier. It
combines old world, five-star values with boutique service, artisan decorative
flavours and views over the historic River Thames. Rooms combine the best
in classic design – with period art deco furniture and locally relevant books
and maps – with contemporary technology including flat screen TVs, WiFi
and touch pad heating and light controls. And when you get hungry, call
roomservice for the very best in modern European cuisine, from lobster
thermidor to the humble burger, as you watch helicopters descend.
Book into: Hotel Verta
Where: London, UK
Why: Unrivalled location if you prefer to travel by air
Contact: +4420 7801 3500, www.hotel-verta.co.uk
072
01 02
DUBAI, UAE
The opening of the Armani Hotel in Dubai marked the first of the 01 Armani Hotel Dubai
internationally celebrated designer’s hotels. Housed in the base of Burj 02 Alila Luang Prabang
Khalifa, the world’s tallest building, the property has been personally
designed by Giorgio to bring interiors suffused with his understated style.
The focus is on luxurious quality. Each room is clad in opulent fabrics
and leather, the bathrooms are finished in green bamboo marble from
Brazil, while the living spaces are furnished with bespoke oak tables with
a liquid metal finish. It is minimalism taken to a new level, but the sharp
lines and graphic design schemes are precisely evocative of his distinctive
signature clothing. Be sure to take advantage of the exceptionally helpful
staff in finding your way around – you risk getting lost if you don’t.
Book into: Armani Hotel Dubai
Where: Dubai, UAE
Why: Be among the first to experience the designer’s hotel
Contact: +971 4 888 3888, dubai.armanihotels.com
LONDON, UK
Since 1889, the very name ‘Savoy’ has stood to mean the very best in
classic hospitality; it was the first to be lit by electricity and the first to
have ‘ascending rooms’, or lifts as we now know them. The iconic London
hotel has been closed for three years in a refurbishment project that took
twice as long and cost over twice as much as planned. Problems have
plagued the development, now, under the Fairmont banner, the company
awarded the management contract, but the staff are prepped and ready
to reopen the former palace for business on 10/10/10.
The new incarnation blends original Edwardian grandeur with
Art Deco glamour and the latest, discreet technological conveniences,
maintaining its five-star service standards. Many of the 269 rooms
and suites have views of the River Thames and London City, while
the signature suites have been styled after some of the hotel’s
highest profile guests. The Royalty among them has given rise to a
spectacular two-bedroom Royal Suite which previewers say is ‘fit for
a King’.
Book into: The Savoy
Where: London, UK
Why: The rebirth of one of the world’s grandes dames hotels
Contact: +44 207 420 2300, www.fairmont.com/savoy
EXHIBITION

PROJECT 60
THE NEWLY ESTABLISHED ECONOMIC
CITIES AUTHORITY (ECA) IS MARKING
ITS ESTABLISHMENT WITH THE LAUNCH
OF AN INNOVATIVE NEW ART SCHEME,
SHOWCASING THE VERY BEST IN
CONTEMPORARY SAUDI ARABIAN ART.
DESIGNED TO SUPPORT THE CULTURAL
DEVELOPMENT AMBITIONS FOUND IN
SAUDI’S ECONOMIC CITIES, “PROJECT
60” WILL INVITE CONTEMPORARY SAUDI
ARTISTS TO LEND THEIR ARTWORK –
60 PIECES IN TOTAL – TO THE NEW
ECA OFFICES IN KING ABDULLAH
ECONOMIC CITY FOR A THREE-
MONTH DISPLAY. THE INITIATIVE ALSO
INCLUDES A COMMITMENT FROM
THE GOVERNMENT’S ECA, WHICH
ENSURES ITS SERVICES WILL BE OFFERED
IN NO MORE THAN 60 MINUTES, ALL
DAY LONG, THROUGHOUT THE ENTIRE
WEEK.

074
075
EXHIBITION

03

06

01 02

05

04

01 Symphonyat 4
02 Symphonyat 10
03 Muwashahat 11
04 Washmiyat 9
05 Darwishyat 1
06 Washmiyat 15

076
 01
03
01 Ola Hijazi in her studio
02 Economic Cities Authority,
exhibition venue
03 Darwishyat 22
02
THE Economic Cities Authority (ECA) has identified an opportunity
to utilize its headquarters as a platform to expose Saudi art to the diverse
audience of business and political figures who frequent the offices on a daily
basis. Project 60 will also serve to highlight one of the ECA’s most exciting
initiatives, 60/24/7, a service to make government and non-governmental
services available to residents and expatriates, individuals or businesses,
within 60 minutes of their request, any time of the day.
Modern artist Ola Hijazi’s will be the first to display her most recent
work in the head office, under a scheme which communicates ECA’s
cultural mandate, which recognises the fundamental role vibrant culture
plays in supporting a successful city, especially where parks, museums
and other cultural provisions are diminished.
The authority is focused on developing an urban ecosystem within
the Economic Cities that simultaneously fosters the mutually supportive
fields of business and culture. Project 60 will allow the organisation to
open a creative dialogue surrounding the mandate, which recognizes that
culture is integral to the liveable cities.
The scheme will be inaugurated through an opening reception jointly-
hosted by ECA and King Abdullah Economic City developer Emaar. The
local and international business and diplomatic community, in addition
to the art community in Saudi Arabia, will be invited to view a regularly-
refreshed showcase of cutting-edge Saudi artwork, year-round.
The economic cities stand as physical proof that the oil powers are not
complacent in their oil weath. Saudi Arabia may be one of the world’s
wealthiest nations, but it also has a large, youthful population. In an effort
to diversify the economy away from a dependency on hydrocarbons
and create sustainable jobs (an estimated 1.3 million of them) for its
burgeoning populace, authorities are establishing dedicated economic
cities. SAGIA estimates that the forward-thinking, sustainably designed
and environmentally-minded cities will contribute US$150 billion to the
GDP by 2020, not to mention a high quality of life for residents. They
are intended to provide continuous improvement to the Saudi Arabian
investment environment. Four of the six planned new economic cities
are currently under development – King Abdullah Economic City,
Prince Abdul Aziz bin Mousaed Economic City, Jazan Economic City
and Knowledge Economic City – in conjunction with UAE real estate
developer, Emaar Properties.
Over a 1,000 of the world’s free zones were surveyed and the 60 deemed
most successful were meticulously studied to determine key success
factors during the economic city development process. The resulting
products are intended to create vibrant centres of excellence in several
sectors.
THE MOST prized of the new cities is the King Abdullah Economic City
(KAEC). It represents a US$27 billion investment driven by the government
but funded by the private sector, the largest private sector project in the
region. And in order to encourage private investment, authorities have
been actively removing barriers to trade to make the new cities among the
world’s easiest places to do business.
When completed, KAEC will be the size of Washington DC, housing
and employing up to two million people. Six key components are intended
to create diversity of economic opportunity: a sea port, industrial zone,
077
EXHIBITION

02

03 04

01 Muwashahat 10
02 Kulsumyat 4
03 Symphonyat 7
04 Kulsumyat 1

01

078
079
OLA HEJAZI
www.olahejazi.com
Born in Tripoli, Lebanon, Saudi artist Ola Hejazi
has been based in Jeddah since she was raised
there as a child. Considered one of the leading
abstract expressionist artists in the Kingdom,
Ola’s trajectory as an artist can be traced back
to the Saudi Art Center in Jeddah where she first
experimented with oil painting in 1995. She has
gone on to develop her skills in printmaking and
portraiture through a host of courses in the best
art schools internationally, including the Chelsea
College of Art and Design and the Slade Art
School at the University College of London.
Her work follows the theme of abstraction
and traditional symbols, with a pronounced use
of primary colours and Arabic calligraphy as a
clearly distinguishable common thread. She is
constantly drawing on her educational background
in Arabic literature, seeking inspiration from the
poetry of Mohammad Darwish or the music of
the iconic Umm Khulthoum in her latest series
Darwishiyat and Khulthoumiyat. Ola likes to
express her form of ‘truth’, as she sees it, through
a combination of bright colours and often written
words on the canvas, relaying through her images
a rich array of human emotions. None of her
pieces are titled, a deliberate move so that viewers
are not confined in their interpretation of her work.
Her work has steadily evolved throughout the
years, expressing stronger opinions about her
own design. There is more colour, more detail,
and more tension in her work. In her last series
Tattoos, she introduces black onto her canvases
and uses numbers and geometric shapes instead
of the free form calligraphy that has dominated
her earlier work.
In addition to her private painting endeavours,
she enjoys working to foster artistic talent with
children and also trains teachers to develop their
experiences in order to teach their students in a
more creative way.
“The visionary inspiration and imagination in
not a technical skill learned in school,” she says,
“but rather to my personal belief, a gift from God.
This is the only way I can explain the source
of any idea I may have during the creation
process.”
One of Saudi Arabia’s leading and most
celebrated female artists, she has participated
in countless group exhibitions internationally,
including Qatar, Jordan, France and Egypt.
Preceding her display for Project 60, Ola
has exhibited solo shows at Atellier Jeddah in
2001, Europia Gallery in Paris in 2007 and a
permanent collection at the SAGIA headquarters
in Riyadh since 2007.

080
 EXHIBITION

02

03

01 Washmiyat 4
02 King Abdullah Economic City
03 Darwishyat 9
04 Washamyat 24
01
05 Darwishyat 4

04 05

educational zone, centre business district, financial island and residential
districts, including 25,000 hotel rooms to accommodate guests, notably
on their way to pilgrimage.
With access to the Red Sea, and a key strategic location between Jeddah and
the Holy Cities of Mekkah and Medina, the city also incorporates a special
sea terminal for these pilgrims. In addition, it is intended that the port will
make KAEC a global hub for light industry, providing good transport links and
proximity to the rich natural resources found in Africa and the Middle East.
Maximising the natural resources available in the Kingdom itself
is also a goal. Petroleum resources will provide low-cost feedstock
for a range of petroleum derivatives, including plastics in a so-called
‘Plastics Valley’ where automotive, biomedical, construction and food
packaging applications will be co-located. Knowledge-based industries
are welcomed to the city; education is prioritized; financial services
are invited to establish a hub in the heart of the globally important Saudi
market.
Low-cost energy provides the main enticement for foreign investors.
But not the only enticement. The Kingdom has been actively developing
its human resource pool by supporting its highly-educated youth
population through vocationally relevant higher education programmes.
Developing a Cultural Strategy for the Economic Cities will add another
dimension to the urban environment that will cater to the young and
educated demographic who seek out these types of lifestyle amenities. With
long term plans to include cultural landmarks, such as museums and art
centers, “Project 60” is just the first showcase of a broad development plan
to infuse creativity and innovation into the fabric of the Economic Cities.
The exhibition will be open for viewing from November 2nd, 2010.
Athr Gallery www.athrart.com is Project 60’s Gallery Partner.

081

THE EFFICACY OF EFFICIENCY
THE CONCEPT OF A SELF-SUFFICIENT NEW YORK COULD POINT
THE WAY TO HOW PEOPLE LIVE OF THE CITIES IN THE FUTURE.
WRITTEN BY STEVE HILL
EFFICIENT LIVING MACHINE is an imaginative and
dramatic view of how New York could look in the not too
distant future as an energy self-sufficient metropolis.
In this world, virtually everything residents require would
be within easy reach thanks to an overlapping grid system
that flows between buildings, becoming home to offices and
residences as well as generating new public spaces for parks,
recreational facilities and even farms, improving the livability
of the city.
In this new city, nothing and no one is rooted to the ground,
with residents no longer needing to have their own cars because
the public transport system would be so convenient and efficient.
And the vertical connections on the grid system – rising
from current and planned stations on the city’s Metro lines
– would be crucial in overall design terms, helping generate
enough electricity, food, heat and oxygen for the Efficient
Living Machine to be completely self sufficient.
Electricity would be generated by the use of wind turbines
plus highly concentrated photo voltaic and hydrogen
systems. The length of the food chain would become much
shorter thanks to the close proximity of farms to the eventual
destination of products.
And the fermentation of organic waste from the farm and the
city itself would help produce a source of heating for residents.
FUTURE THINKING
Oxygen produced on these grids would be circulated
throughout domestic buildings to enhance living comfort,
while rainwater would be collected and purified before being
recirculated, ready to be consumed by residents.
The firms of LEDarchitecturestudio and HIDDENOFFICE
have collaborated to produce these concept proposals, which
are described as a way “to revise the city… and above all an
attempt to imagine what could take place in another way”.
Residents, they add, could be offered differing lifestyles
on different levels of the grid, with the density of functions
enabling people to move conveniently from the office to a
park or farm.
083
 BOOKS
REVIEWS BY DOROTHY WALDMAN

ERICK VAN EGERAAT

Erick van Egeraat won first prize in 2007 for his concept design for the National Library of the Republic of Tatarstan, Russia. Embedded into the hill, a multi-functional
atrium is at once a meeting point, boulevard, gallery, living room, garden and educational facility, with the intention of encouraging citizens to use the resource freely.

ICONOCLAST: A NEUROSCIENTIST
REVEALS HOW TO THINK
DIFFERENTLY
Gregory Berns
Harvard Business
Press
Defining an iconoclast
as a person who does
something that others say
cannot be done, Gregory
Berns, who holds the
Distinguished Chair of
Neureconomics
at Emory University yet translates technical
findings for a broad audience, reveals
how successful people think differently.
Recognising the natural roadblocks
that inhibit innovative thinking – flawed
perception, fear of failure and the inability
to persuade others – he examines a host
of successes to illustrate and explain how
breaking through these barriers allowed
these individuals to earn their iconic status.
THE BUSINESS PLAYGROUND: WHAT THE DOG SAW AND GOOD VALUE: REFLECTIONS ON
WHERE CREATIVITY AND OTHER ADVENTURES MONEY, MORALITY AND AN
COMMERCE COLLIDE Malcolm Gladwell UNCERTAIN WORLD
Dave Stewart & Mark Simmons Penguin Books Stephen Green
Prentice Hall This collection of articles, Allen Lane
In today’s highly which all originally As the world began its
world, there are many appeared in The New plunge into economic
businesses trying to Yorker, share the unique crisis in 2008, Stephen
compete on the basis observations of Malcolm Green, chairman of
of quality, price and Gladwell, the highly- HSBC, began reflecting on
timing. However, to regarded author of The history, politics, religion,
be truly successful you Tipping Point, Blink and philosophy, literature and
have to be creative to Outliers. The title essay is about Cesar economics to understand the deepening
discover unique ways Millan, a dog whisperer. Interested in what gloom surrounding global affairs. Beginning
of doing things better or goes through the minds of people, Gladwell with an examination of how globalisation
differently from everyone else. Most cultures first wanted to know how Millan was able has affected human history, he progresses
focus on structure and uniformity rather than to calm animals, then realised that the towards the future. With the seemingly
on the risks associated with creativity. This real question was what went on inside the contradictory goals of reducing poverty
entertaining book applies the magic of dog’s head. Other essays ponder financial while reducing carbon emissions, businesses
creativity that we all innately possessed as scandals and disasters, such as the crash and people must develop new ways to
children to business by providing a plethora of the Challenger space shuttle, or wonder interact and react with each other for the
of idea-inducing games to recharge the about decision-making in a world of both individual and communal good in order to
creative juices. too much and not enough information. produce lasting value.

085
VISIONARY

THE first-ever synthetic life form to be birthed

in a laboratory has been created by Dr John Craig Venter,
recognised as one of the world’s leading scientists for his
contributions in genome research.
Every letter of the genetic code of a single-cell bacterium
was synthetically replicated at the Craig Venter Institute in
Rockville, Maryland, after more than a decade of work at
a cost of $40 million. To mark the genome as synthetic so
its replication can be traced, strands of watermarked DNA
containing a coded message were introduced into the cell.

PIONEERING SCIENTIST, DR CRAIG

VENTER,IS THE FIRST PERSON TO
SYNTHECISE A LIVING ORGANISM
IN A LABORATORY.
WRITTEN BY DOROTHY WALDMAN

“This is an important step, both scientifically and

philosophically,” Dr Venter says, marking a new era
when life can be made to benefit humanity by absorbing
pollutants from the atmosphere and even producing
proteins for life-saving vaccines.
The economic value of this discovery has been estimated
to be more than a trillion dollars; if his vision of creating
algae that can be converted into fuel – a Venter project in
conjunction with ExxonMobil – comes to fruition.
Some see this achievement as a significant breakthrough,
assuring Dr Venter the Nobel Prize. Other scientists argue
that it is not a new kind of life form because the cell
behaves like any other of its kind, while still others view it
as an apocalyptic Pandora’s box.
Although opposed to the war in Vietnam, it was during his
drafted tour of duty as a medical corpsman with the US Navy,
when he cared for wounded soldiers, that the former surfer
and night clerk ar Sears department store developed a desire
to study medicine that would lead to scientific research.
He entered the State University of New York, Buffalo,
leaving in six years with a doctorate and then joining the
National Institute of Health, where he developed a rapid
method of finding genes, ultimately becoming entwined
in an international patent controversy.
Regardless of the furowre that sometimes surrounds
his work, Dr Venter’s most recent discovery is “a defining
moment in the history of biology and biotechnology”
according to Mark Bedau, a philosopher at Reed
College, Portland, Oregon. Dr Venter was listed on Time
EVAN HURD

magazine’s 100 most influencial people in the world list in

2007 and 2008.

086
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