You are on page 1of 65

&KDSWHU

,QWURGXFWLRQ
 ,QWURGXFWLRQ
 0HDQLQJRISUREOHP
 &KDUDFWHULVWLFVRIJRRGSUREOHP
 6RXUFHRIUHVHDUFKSUREOHP
 ,PSRUWDQFHRIUHVHDUFKSUREOHP
 'HILQLWLRQRIUHVHDUFKSUREOHP
 6WDWHPHQWRISUREOHP
 &RQFHSWVXVHGLQVWXG\
 +LVWRULFDOEDFNJURXQGRIVWXG\
 $GMXVWPHQW
 'HILQLWLRQ PHDQLQJRIDGMXVWPHQW
 :K\DGMXVWPHQWQHFHVVDU\
 &KDUDFWHUL]DWLRQDGMXVWPHQW
 &KDUDFWHULVWLFVRIVDWLVIDFWRU\DGMXVWPHQW
 6HOIFRQFHSWUHODWLQJWRDGMXVWPHQW
 )DFWRURIDGMXVWPHQW
 6FLHQWLILFQDWXUHRIDGMXVWPHQW
 )LHOGVRIDGMXVWPHQW
 ([SODQDWLRQRIILHOGVFRQWDLQHHLQWKLVVWXG\
 0HQWDOKHDOWK
 +LVWRULFDOEDFNJURXQGRIPHQWDOKHDOWK
 'HILQLWLRQRIPHQWDOKHDOWK
 &RQFHSWRINXSSXVZDP\DERXWPHQWDOKHDOWK
 )DFWRUVDIIHFWLQJPHQWDOKHDOWK
 &KDUDFWHULVWLFVPHQWDOO\KHDOWK\SHUVRQ
 )DFWRUVLQWHUIHULQJPHQWDOKHDOWK
 5HPHGLHVRIPDULQDWLQJPHQWDOKHDOWK
 5XOHVRIPHQWDOKHDOWK
1
 ,PSRUWDQFHRIPHQWDOKHDOWK
 )DFWRUVRIPHQWDOKHDOWK

 /LIH6DWLVIDFWLRQ
 'HILQLWLRQRIOLIHVDWLVIDFWLRQ
 )LYHIDFWRUVRIOLIHVDWLVIDFWLRQ
 4XDOLW\RIZRUNOLIH
 /LIHVDWLVIDFWLRQDQGKDSSLQHVV
 /LIHVDWLVIDFWLRQDQGZHOOEHLQJ
 'HWHUPLQDWHRIOLIHVDWLVIDFWLRQ
 3RVVLELOLW\RIJUDWHUOLIHVDWLVIDFWLRQ
 (YDOXDWLRQRIOLIHVDWLVIDFWLRQ

2
 ,QWURGXFWLRQ
 0DQ LV XQLTXH  H[FHOOHQW FUHDWLRQ RI QDWXUH 1DWXUH KDV
JLIWHGLQWHOOLJHQFHWKLQNLQJ IHHOLQJVWRPDQNLQG,IWKHLQWLPDWH
HODWLRQ EHWZHHQ QDWXUH DQG PDQ LV PDLQWDLQHG PRVW RI WRGD\·V
SUREOHPV EHFRPH OLJKW EXW XQIRUWXQDWHO\ WRGD\·V PDQ LV
FRQVWDQWO\ JRLQJ DZD\ IURP WKH QDWXUH 7KH UHDVRQ EHLQJ WKH
FRQVWDQWO\LQFUHDVLQJQHHGV FRQIHFWLQJDWWHPSWVWRIXOILOOWKHVH
QHHGV
 (YHU\PHQLQWKHSUHVHQWFRPSHWLWLYHDJHLV LQYROYHG LQ
WKH DPELWLRQ WR JHW PRUH DQG PRUH WKDQ RWKHUV &RQVHTXHQWO\
WKH LQFRPSOHWH H[SHFWDWLRQV FDXVH DVN RQ PHQWDO KHDOWK
%HVLGHV WKH PRVW LPSRUWDQW PDWWHU LV WKH VWULNLQJ GHVLUH WR
PDNHDGMXVWPHQWZLWKHQYLURQPHQW7KHSHUIHFWDGMXVWPHQWZLWK
WKHHQYLURQPHQWLQGLFDWRUWKHKHLJKWRIKDSSLQHVV7RPDNHWKH
OLIHPHDQLQJIXOWKHLQGLYLGXDOKDVWRPDNHFRQVWDQWDWWHPSWVWR
PDNHDGMXVWPHQWLQHYHU\ILHOGRIOLIHDQGLQHYHU\VWDWHRIOLIH,Q
PDNLQJ FRQWLQXRXV DWWHPSWV WR DGMXVW LQ WKH FRQVWDQWO\
FKDQJLQJHQYLURQPHQWWKHLQGLYLGXDOKDVFKDQJHKLVVHOIRUDIWHU
KLV HQYLURQPHQW $G MXVWLFH SHUVRQ SRVVHVVHV EDODQFHG
SHUVRQDOLW\ DQG JRRG PHQWDO KHDOWK (YHU\ LQGLYLGXDO KDV WR
PDNH DGMXVWPHQW ZLWK KLV SK\VLFDO HQYLURQPHQW WKH FRQFHSW RI
DGMXVWPHQWLVGHULYHGIURPWKHHYROXWDQDU\WKHRU\RI'DUZLQIRU
WKHEHLQJVRIHDUWKWKHVWUXJJOHZLWKWKHSK\VLFDOHQYLURQPHQWLV
WKH PDLQ WKLQJ LQ DGMXVWPHQW :KHQ WKHUH LV KDUPRQ\ EHWZHHQ
WKHJRRG HQYLURQPHQWLWLVFDOOHGDGMXVWPHQW7KHDGMXVWPHQW
LV QRW D FRQGLWLRQ EXW D SURFHVV $GMXVWPHQW LV D SURFHVV RI
OHDUQLQJDWWKHHYHU\PRPHQWRIOLIH REWDLQLQJVRPHWKLQJ2QO\
IRUDGHDOERG\WKHUHLVQRSUREOHPRIDGMXVWPHQW%HVLGHVZKHQ
RQH QHHG LV VDWLVILHG WKH RWKHU QHHG DULVHV LPPHGLDWHO\ ,Q WKH
DWWHPSWVWRVDWLVI\QHHGVPDQ·VPHQWDOKHDOWKLVGLVWXUEHG

3
 0HQWDOKHDOWKLVDOVREXUQLQJSUREOHPRIPRGHPDJH,WLV
GLIILFXOW WR REWDLQ WKH FRQFHSW RI PHQWDOO\ LOO SHUVRQ ZLWKRXW
NQRZLQJ WKH FRQFHSW RI JRRG PHQWDO KHDOWK 7KH LQGLYLGXDO ZKR
LV DEOH WR GR WKH ZRUN ZLWK KDQGV OHJV  RWKHU RUJDQV ZLWKRXW
WKH FRPSODLQ RI SK\VLFDO SDLQ PLVHU\ RU LOOQHVV LV FDOOHG
SK\VLFDOO\KHDOWK\:HFDQQRWUHFRJQL]HPHQWDOKHDOWKVRVZLIWO\
:H UDUHO\ ILQG WKHWRWDOO\ PHQWDO KHDOWK\ SHUVRQ EXW LW GRHV QRW
PHDQWKDWQRERG\RQWKLVHDUWKLVKDYLQJJRRGPHQWDOKHDOWK
 7R JHW KDSSLQHVV SODFH  VXFFHVV WKH PDQ PXVW REWDLQ
WKH DUW RI NHHSLQJ KLPVHOI KHDOWK\ 0HQWDOO\ KHDOWK\ SHUVRQ FDQ
UHFRJQL]H KLPVHOI  XQGHUVWDQG KLPVHOI VXFK SHUVRQ FDQ
GLVFULPLQDWH EHWZHHQ OLJKWV  ZLQJ EHIRUH GRLQJ DQ\WKLQJ +H
FDQ IRUHVHH WKH IXWXUH FRQVHTXHQFLHV RI KLV GHDGV +H KDV
FRQILGHQFH LQ KLPVHOI $Q[LHW\ RI IHDU ZLWKRXW DQ\ UHDVRQ RU
GHILFLHQF\LQDGMXVWPHQWLQGLFDWHZHHNPHQWDOKHDOWK

 6HOHFWLRQ5HVHDUFK3UREOHP
 )ROORZLQJ WKLQJV ZHUH NHSW LQ PLQG EHIRUH VHOHFWLQJ D
UHVHDUFKSUREOHP
 %HIRUHVWDUWLQJVFLHQWLILFUHVHDUFKWKHPDMRUWKLQJLVZKLFK
UHVHDUFK SUREOHPV ZRXOG EH VRFLDOO\ HGXFDWLRQDOO\
GHYHORSPHQWDOO\ RU HFRQRPLFDO XVHIXO WKH KLV WR VHOHFW WKH
SUREOHP IURP GLIIHUHQW ILHOGV 7KH VHOHFWLRQ RI UHVHDUFK SUREOHP
EHFRPHVHDV\IURPWKHLQIRUPDWLRQDYDLODEOHHODWLQJWRWKHRU\ 
SURGLJDOXWLOLW\7KHVHOHFWLRQRIUHVHDUFKSUREOHPEHFRPHVHDV\
IURPWKHVSHFLILFLQIRUPDWLRQDERXWQHZUHVHDUFK,WLVDGLIILFXOW
SUREOHP WR VHOHFW D WRSLF UHVHDUFK RI VWXG\ 6R VRPHWLPH
UHVHDUFK SUREOHP UHPDLQV SUREOHP IRU UHVHDUFKHU +HUH ZH
ZRXOG GLVFXVV UHVHDUFK SUREOHP DQG WKH DGGLWLRQDO LQIRUPDWLRQ
DERXWLW

4
0HDQLQJRI3UREOHP
 ´7KH UHVHDUFK LV VXFK D SUREOHP WKH VROXWLRQ RI ZKLFK LV
QRWLPPHGLDWHO\DYDLODEOHµ
 ´*HQHUDOO\ WKH UHVHDUFK LV D SUREOHP WKH DQVZHU WR LW LV
QRWHDVLO\DYDLODEOHµ
7RKQVHQW  
 ´7KH VLJQLILFDQFH RI UHVHDUFK SUREOHP LV D JDS LQ RXU
NQRZOHGJHµ
0DFJQLJXP  
 ´5HVHDUFK SUREOHP LV DQ LQWHUURJDWLYH VHQWHQFH RU
VWDWHPHQW ZKLFK DVNV ZKDW W\SH RI UHODWLRQVKLS H[LVWV EHWZHHQ
WZRYDULDEOHVµ
 7KHDQDO\VLVRIDERYHGHILQLWLRQLQGLFDWHVWKDWUHVHDUFKLVD
SUREOHPZKLFKKDVQRLPPHGLDWHDQVZHU7KHUHVHDUFKSUREOHP
KDVFHUWDLQSHFXOLDULWLHVZKLFKDUHDVXQGHU
 6WDWHPHQWRIUHVHDUFKSUREOHPLVH[SUHVVHGLQLQWHUURJDWLYH
VHQWHQFH6XFKVWDWHPHQWLVZULWWHQLQFOHDUZRUNV(J $ ZKDW
LV WKH UHODWLRQ EHWZHHQ WKH PHQWDO KHDOWK DQG DGMXVWPHQW RI
ZRPHQ " %  WKH PHQWDO KHDOWK RI ZRPHQ LV UHODWLYH ZLWK WKHLU
DGMXVWPHQW" & WKHPHQWDOKHDOWKDQGDGMXVWPHQWRIZRPHQLV
UHODWLYHZLWKWKHLUOLIHVDWLVIDFWLRQ"
 7KH DERYH LOOXVWUDWLRQV FODULI\ WKDW WKH VWDWHPHQW RI
UHVHDUFK SUREOHP LV H[SUHVVHG LQ LQWHUURJDWLYH IRUP 7KH
VWDWHPHQWFODULILHVWKDWVRPHWKLQJLVEHLQJDVNHG7KHDQVZHUWR
VXFK TXHVWLRQ LV IRXQG DIWHU UHVHDUFK 0DQ\ WLPHV WKH UHVHDUFK
SUREOHPLVH[SUHVVHGLQRUGLQDU\IRUPWKDQLQWHUURJDWLYHIRUP
 7KH VWDWHPHQW RI UHVHDUFK SUREOHP LV DQ H[SUHVVLRQ RI
UHODWLRQ EHWZHHQ WZR RU PRUH YDULDEOHV ,W PHDQV WKDW EHIRUH
H[SUHVVLQJ UHVHDUFK SUREOHP WKH UHVHDUFKHU WDNHV GHFLVLRQ

5
DERXWLQUHODWLRQEHWZHHQWZRYDULDEOHV,QWKHDERYHLOOXVWUDWLRQ
WKHDGMXVWPHQWDQGPHQWDOKHDOWK\DUHWZRYDULDEOHV

7KHFKDUDFWHULVWLFVRIJRRGSUREOHP
 7KHUH DUH WZR W\SHV RI UHVHDUFK SUREOHPV   VFLHQWLILF
SUREOHPV  XQVFLHQWLILFSUREOHPV
 ,QVRFLDOVFLHQFHVHIIHFWLYHFKDUDFWHULVWLFVSUREOHPVXFKDV
PHDVXUHVWUDLWVHWFDUHPHQWLRQHG%XWWKHTXHVWLRQDULVHVZKDW
LV WKH LGHQWLILFDWLRQ RI JRRG VFLHQWLILF SUREOHP " 3V\FKRORJLVWV
KDYH PHQWLRQHG VRPH PHDVXUHV RI FKDUDFWHULVWLF RI JRRG
UHVHDUFKSUREOHP,QVXFKSUREOHPVVFLHQWLILFPHWKRGVDUHXVHG
DSSO\ +HUH WKH SUREOHP KDYLQJ SXUH DQG UDGLFDO DVSHFW JHWV
SULRULW\ ,Q VXFK SUREOHPV JLYH XV GHILQLWH GDWD DERXW WKH IDFWV
7KH FRPSOD[LW\  FKDQJHDELOLW\ RI UHVHDUFK SUREOHP LV GHILQLWH
DQG LW KDV UHODWLYH YDOLGLW\ ,W PXVW FRQWDLQ LQWHUURJDWLYH
VHQWHQFH YDULDEOHV UHODWLRQ XQDPELJQLW\ RI VFLHQWLILF SUREOHP
H[SHULHQFHERDUGHUOLQHQDWXUHOHYHOVK\SRWKHVLVHWF
7KHVRXUFHVRIUHVHDUFKSUREOHP
 +RZ VKRXOG ZH IRUPXODWH UHVHDUFK SUREOHP " 7KLV LV D
GLIILFXOW WDVN VSHFLDOO\ LW LV GLIILFXOW WR IRUPXODWH WKH JRRG
UHVHDUFK SUREOHP ,Q WKLV UHJDUG H[SHULHQFH UHVHDUFK RU
SV\FKRORJLVWV KDYH VKRZQ VRPH VRXUFHV RU EDVLV RI UHVHDUFK
SUREOHP 7KHVH VRXUFHV DUH XVHIXO LQ ILQGLQJ RXW JRRG UHVHDUFK
SUREOHP ,Q WKLV UHVSHFW WKH GHIHUHQV  OHDUQHGQHVV RI
UHVHDUFKHU KLV LQWHUHVW  HIILFLHQF\ SLORWV VWXG\ VXPPDU\ RI
UHVHDUFK MRXUQDO RI UHVHDUFK HQF\FORSHGLD UHODWHG ERRNV WKH
VXJJHVWLRQV RI H[SHUWV SODQQHG SURJUDPPH RI VDPSOLQJ WKH
QHHGVRISUHVHQWWLPHVSURIHVVLRQDOSHUVRQQHOHWFDUHXVHIXO


6
7KHLPSRUWDQFHRIUHVHDUFKSUREOHP
 7KH ILUVW VWHS RI UHVHDUFK LV IRUPXODWLRQ RI UHVHDUFK
SUREOHP 7KH VXFFHVV RI UHVHDUFK GHSHQGV XSRQ WKH SURSHU
VHOHFWLRQ RI UHVHDUFK SUREOHP 7KH UHVHDUFK ZRUN EHFRPHV HDV\
RISURSHUSUREOHPLVVHOHFWHGDQGWKHUHVHDUFKDFKLHYHVKLVJRDO
HDVLO\ %XW LI WKH UHVHDUFK SUREOHP LV QRW SURSHU WKH UHVHDUFK
ZRUNFHDVHVDQGWKHUHVHDUFKHUH[SHULHQFHVGLIILFXODWLHVDWHYHU\
VOLS6RWKHUHVHDUFKPXVWEHVHOHFWHGDIWHUFDUHIXOWKLQNLQJ7KH
UHVHDUFK VKRXOG WDNH LQWR FRQVLGHUDWLRQ WKH IROORZLQJ WKLQJV
EHIRUH VHOHFWLQJ D UHVHDUFK SUREOHP 7KH SUDFWLFDO  WKHRUHWLFDO
LPSRUWDQFHRISUREOHP,QWHUHVW HIILFLHQF\SURSHUWRROV WHVWV
RI UHVHDUFK SURSHU JXLGDQFH VDYLQJ RI WLPH  HQHUJ\ UHODWLRQ
ZLWK WKH WKHRU\ UHODWLRQ ZLWK SUHYLRXV UHVHDUFKHUV IUHH IURP
LPSRVVLEOH UHVHDUFK IUHH IURP UHOLJLRXV DQG PRUDO VKRFNV OHVV
H[SUHVVLYHFODULW\RIVWDWHPHQWRIUHVHDUFKSUREOHPLQOHQJWKRI
WKH VWDWHPHQW RI SUREOHP LQGHSHQGHQW YDULDEOH GHSHQGHQW
YDULDEOH H[DPLQDWLRQ RI SUREOHP HWF VKRXOG EH WDNHQ
FRQVLGHUDWLRQEHIRUHVHOHFWLQJUHVHDUFKSUREOHP

7KHGHILQLWLRQRISUREOHP
 :H RIWHQ KHUH WKDW WKH FOHDU SUHVHQWDWLRQ RI SUREOHP LV
HTXDOWRKDOIWKHVROXWLRQ RISUREOHP7KLVVWDWHPHQWVKRZV WKH
QHHG RI SUHVHQWLQJ UHVHDUFK SUREOHP PHDQLQJIXOO\ WKH UHVHDUFK
SUREOHP PXVW EH GHILQHG XQDPELJXRXVO\ E\ VXFK SUHVHQWDWLRQ
WKH UHOHYDQW DQG LUUHOHYDQW LQIRUPDWLRQ FDQ EH VHSDUDWHG 7KH
SURSHU GHILQLWLRQ RI UHVHDUFK SUREOHP HQDEOHV WKH UHVHDUFKHU WR
SURFHHG LQ ULJKW GLUHFWLRQ :KLOH LPSURSHU DQG XQVFLHQWLILF
GHILQLWLRQ RI UHVHDUFK SUREOHP ZRXOG FUHDWH REVWDGHV 7KXV WKH
GHILQLWLRQ RI UHVHDUFK DQG LW LV YHU\ LPSRUWDQW VWHS LQ FDUU\LQJ
RXWUHVHDUFKSUREOHPLVPRUHLPSRUWDQWWKDQLWVVROXWLRQZHFDQ

7
VKRSHWKHUHVHDUFKGHVLJQRQWKHEDVLVRIWKHGHWDLOVRIUHVHDUFK
SUREOHP DQG ZH FDQ WDNH UHOHYDQW VWHSV HDVLO\ LQ WKH UHVHDUFK
SURJUDPPH

7KHWHFKQLTXHRISUREOHP
 :KDW LV  WKH PHDQLQJ RI GLILQLQJ UHVHDUFK SUREOHP " 7KH
DQVZHU WR WKLV TXHVWLRQ LV WKDW WKH UHVHDUFK SUHVHQWV WKH
SUREOHPV ZLWK LWV OLPLWDWLRQV RQ RWKHU ZRUNV WKH GHILQLWLRQ RI
UHVHDUFKGHWHUPLQHVWKHERDUGHUOLQHRIUHVHDUFK7KHUHVHDUFKHU
KDV WR PDNH VWXG\ ZLWK SUHGHWHUPLQG JRDO 7KH GHILQLWLRQ RI
UHVHDUFK SUREOHP LV VXFK D WDVN ZKLFK UHPRYHV WKH PHQWDO
FRQIXVLRQRIUHVHDUFKHU

 6WDWHPHQWRIUHVHDUFKSUREOHP
 ,Q HYHU\ UHVHDUFK WKH UHVHDUFKHU KDV WR VHOHFW UHVHDUFK
SUREOHP *HQHUDOO\ WKLV D GLIILFXOW WDVN 7KXV EHIRUH EHJLQQLQJ
DQ\ UHVHDUFK ZRUN WKH ILUVW VWHS LV WR VHOHFW UHVHDUFK SUREOHP
:H FDQ VD\ DIWHU GHILQLQJ WKH SUREOHP WKDW WKH LQWURGXFWRU\
WKLQJLVWKHVHOHFWLRQSUREOHPEHIRUHLWVVROXWLRQ
 .DUOLQJHU VWDWHV WKDW SUREOHP LV VXFK DQ LQWHUURJDWLYH
VHQWHQFHRUVWDWHPHQWLQZKLFKTXHVWLRQVDVNHGDVWRZKDWW\SH
RIUHODWLRQSUHYDLOVEHWZHHQWZRRUPRUHYDULDEOHV

7KHVXEMHFWPDWWHURISUHVHQWVWXG\
 ´7KH VWXG\ RI DGMXVWPHQW PHQWDO KHDOWK DQG OLIH
VDWLVIDFWLRQDPRQJZRUNLQJDQGQRQZRUNLQJZRPHQµ
 7KHFRQFHSWVXVHGWKHSUHVHQWVWXG\
 %HIRUH GLVFXVVLQJ WKH GHVLJQ RI WKH SUHVHQW VWXG\ LW LV
QHFHVVDU\ WR XQGHUVWDQG WKH EDVLF FRQFHSWV XVHG LQ WKLV VWXG\
VRWKDWZHFDQREWDLQFRUUHFWDQGSURSHUDQVZHUVRIWKHSUREOHP

8
RI SUHVHQW VWXG\ ,Q WKH SUHVHQW VWXG\ LW LV QHFHVVDU\ WR
XQGHUVWDQGFOHDUO\WZRPDLQFRQFHSWV7KHZKROHVWXG\GHSHQGV
XSRQ WKHVH WKUHH FRQFHSWV 7KHVH FRQFHSWV DUH DGMXVWPHQW
PHQWDOKHDOWKDQGOLIHVDWLVIHFWLRQ
 +LVWRULFDOEDFNJURXQGRIWKHSUHVHQWVWXG\
 +LVWRULFDOEDFNJURXQGRIWKHVWXG\RIDGMXVWPHQW
  7KHLQIRUPDWLRQUHODWLQJDGMXVWPHQW
  :KDWLVPHQWDOKHDOWK"
  7KHLQIRUPDWLRQUHODWLQJWRPHQWDOKHDOWK
  0HDQLQJRIOLIHVDWLVIDFWLRQ
 7KHLQIRUPDWLRQUHODWLQJOLIHVDWLVIDFWLRQ
 7KH SUHVHQW VWXG\ LV UHODWHG ZLWK WKH DGMXVWPHQW OLIH
VDWLVIDFWLRQ DQG PHQWDO KHDOWK RI ZRPHQ DQG VR WKH FRQFHSWV
DGMXVWPHQW PHQWDO KHDOWK DQG OLIH VDWLVIHFWLRQ QHHG IXOO
FODULILFDWLRQ
$'-8670(17
 0DQLVVRFLDODQLPDO6RHYHU\PDQKDVWRDGMXVWZLWKWKH
SK\VLFDO HQYLURQPHQW WR VDWLVI\ KXQJHU WKLUVW DQG VHFXULW\
QHHGV 7R VDWLVI\ SV\FKRORJLFDO QHHGV VXFK DV VHOI HVWHHP
DIIHFWLRQ VHOIDFWXDOL]DWLRQ KH KDV WR DGMXVW ZLWK VRFLDO
HQYLURQPHQW 2QH KDV WR LQWHUDFW ZLWK VRFLDO HQYLURQPHQW WR
VDWLVI\VXFKSV\FKRORJLFDOQHHGV
 6XFKDQLQWHUDFWLRQSURFHVVLVDGMXVWPHQW$GDSWDWLRQDQG
DGMXVWPHQW DUH JHQHUDOO\ XVHG LQ WKH VDPH VHQVH 6WLOO KRZHYHU
ERWKDUHGLIIHUHQWSURFHVVHV
 :H NQRZ WKDW WKHUH DUH DOZD\V FKDQJHV LQ WKH QDWXUH
7KHUHIRUH DJDLQVW WKH FDWHVWU\SKH RI H[FHVVLYH UDLQV RU VFDQWO\
UDLQV DQLPDOV DQG RWKHU EHLQJV KDYH WR PDNH FKDQJHV LQ WKHLU
OLIHURXWLQHWRVXUYLYH7KXVDFFRUGLQJWR'DUZLQDGDSWDWLRQLVD

9
SURFHVV RI DGMXVWLQJ ZLWK WKH HQYLURQPHQW WR VXUYLYH DQG
PDLQWDLQSK\VLFDOH[LVWHQFH
 7KXV'DUZLQKDVXVHGZRUGDGDSWDWLRQIRUWKHLQWHUDFWLRQ
RI DQLPDOV ZLWK SK\VLFDO HQYLURQPHQW 3V\FKRORJ\ KDV DGRSWHG
WKHFRQFHSWRIDGMXVWPHQWIURP%LRORJ\7RLQGLFDWHWKHSURFHVV
RILQWHUDFWLRQZLWKVRFLDO FXOWXUDOHQYLURQPHQWLQDGGLWLRQDOWR
SK\VLFDO HQYLURQPHQW SV\FKRORJLVWV KDYH XVHG WKH ZRUG
DGMXVWPHQW
 7KXV¶DGDSWDWLRQ·DQG¶DGMXVWPHQW·DUHGLIIHUHQWSURFHVVHV
 $GMXVWPHQW LV PDLQWDLQLQJ EDODQFH EHWZHHQ QHHGV DQG
IDFWRUV LQIOXFLQJ WKH VDWLVIDFWLRQ RI QHQHGV ,Q DGMXVWPHQW
LQGLYLGXDOVHVWDEOLVKHVFRRUGLQDWLRQEHWZHHQKLVHIIRUWVDQGWKH
VLWXDWLRQ+HPDNHVQHFHVVDU\FKDUJHVLQKLVHIIRUWV VLWXDWLRQ
WR DGMXVW 7KH DLP RI DGMXVWPHQW LV QRW PHDUO\ H[LVWLQJ EXW
REWDLQ VDWLVIDFWRU\ FRQGLWLRQ LQ WKH VWUHVVIXO VLWXDWLRQ 7KH
SURFHVVRIDGMXVWPHQWLVFUHDWLYHDQGJRDOGLUHFWHG

7KHPHDQLQJDQGGHILQLWLRQRIDGMXVWPHQW
 *HQHUDO PHDQLQJ RI DGMXVWPHQW LV SURSHU DGDSWDWLRQ RU
PDLQWDLQ EDODQFH LQ WKH HQYLURQPHQW ,Q (QJOLVK ODQJXDJH WKH
ZRUGDGMXVWPHQWLVXVHGIRUWKHSURFHVVRIDGDSWDWLRQ¶7RDGMXVW
GHSHQGV XSRQ WKH YHUE ,W PHDQV WR DUUDQJH OLJKWO\ 7KXV
DGMXVWPHQWLVDSURFHVVRIDUUDQJLQJRXUEHKDYLRXUSURSHUO\
 'LIIHUHQW ZULWHUV KDYH JLYHQ GLIIHUHQW GHILQLWLRQV RI
DGMXVWPHQW 6RPH RI WKH LPSRUWDQFH GHILQLWLRQV RI DGMXVWPHQW
DUHDDVXQGHU
 ´$GMXVWPHQW LV HIIHFWLYHQHVV RI LQGLYLGXDOV DWWHPSWV WR
PDLQWDLQ EDODQFH EHWZHHQ VDWLVIDFWLRQ QHHGV  HQYLURQPHQWµ
-DPHV FROHPDQ   ´$GMXVWPHQW LV D SURFHVV RI PDLQWDLQLQJ

10
EDODQFH EHWZHHQ QHHGV DQG WKH FLUFXPVWDQFHV DIIHFWLQJ QHHGVµ
%RULQJ)LHOG  
 ´$GMXVWPHQW LV DELOLW\ WR FRPSURPLVH HIIHFWLYHO\ ZLWK
SHUVRQDO QHHGV DOO DFTXLUH XQGHUVWDQGLQJ WR JUH XS ZLWK
IUXVWUDWLRQDODOOREVWUDGHVDULVLQJLQWKHZD\VRIDGMXVWPHQWµ
)HG0DFNH\QH  
 ´$GMXVWPHQWLVDSURFHVVRILQWHYDWLRQ,WQHYHUHQGVVLQFH
LWLVDFRQWLQXRXVSURFHVV7KHUHLVDUHODWLRQRIFDXVDWLRQLQWKLV
SURFHVV
/HKQHU &XEH  
 ´$GMXVWPHQW LQGLFDWHV FKDQJH LQ RXUVHOYHV DQG RXU
HQYLURQPHQWWRVDWLVI\ RXUQHHGDQGFRSHXSZLWKWKHGHPDQGV
RIOLIHDQGIRUHVWDEOLVKLQJVDWLVIDFWRU\UHODWLRQVZLWKRWKHUVµ
(DVWZRUG$GZDWHU
 ´$GMXVWPHQW LV D SURFHVV LQWHUYDFWLRQ EHWZHHQ RYHUVHOYHV
DQG RXU HQYLURQPHQW LQ ZKLFK HLWKHU ZH DGRSW ZLWK WKH
HQYLURQPHQWRUDIWHURXUHQULRQPHQWµ
/HKQHU &XEH
 ´$GMXVWPHQW LV WKH UHVXOW RI LQGLYLGXDOV HIIRUWV WR DGRSW
ZLWKWKHQHHGVDQGFLUFXPVWDQFHVDIIHGLQJWKHQHHGVµ
&ROLPDQ
 7KH DERYH GHILQLWLRQV RI DGMXVWPHQW FODULI\ WKDW WKH
LQGLYLGXDODWWHPSWVWRVDWLVI\RXUQHHGVDQGGHPDQGV7RVDWLVI\
QHHGV PDQ KDV WR LQWHUDFW FRQVWDQWO\ ZLWK HQYLURQPHQW 0DQ
KDVWRPDNHFKDQJHVLQKLPVHOIRUKLVHQYLURQPHQWWRVDWLVI\KLV
QHHGV RU HVWDEOLVK HIIHFWLYH UHODWLRQV ZLWK RWKHUV 7KH
HQYLURQPHQW LV FRQVWDQO\ FKDQJLQJ DQG VR ZH KDYH WR PDNH
FKDQJHVLQRXUVHOYHV7KXVPDQKDVWRPDNHFRQVWDQWDWWHPSWV
WRDGMXVWZLWKWKHHQYLURQPHQWZKLFKLVFRQWLQXRXVO\FKDQJLQJ

11
,Q VKRUW WKH LQGLYLGXDO GDWLVILHV KDV QHHGV HIIHFWLYHO\ LQ KLV
HQYLURQPHQW:KHQWKLVKDSSHQVLWLVFDOOHGDGMXVWPHQW

:K\DGMXVWPHQWLVQHFHVVDU\"
 ,Q WKLV UDSLGO\ FKDQJLQJ SUHVHQW WLPHV UHYROXWLRQDU\
FKDQJHVDUHWDNLQJSODFHLQGLIIHUHQWILHOGVWRFRSHXSZLWKVXFK
HQYLURQPHQW DGMXVWPHQW EHFRPHV QHFHVVDU\ 7R NHHS SDFH ZLWK
WKHFKDQJLQJVRFLHW\RQHKDVWRPDNHFKDQJHVLQRXUVHOIRUKLV
HQYLURQPHQW ,W WKH LQGLYLGXDO GRHV QRW NHHS SDFH ZLWK WKH
FKDQJLQJ WLPH KH LV WKURZQ EDFN LQ WKH VRFLHW\ 6R WKH
LQGLYLGXDO KDV WR FRQVWDQWO\ PDNH FKDQJH LQ KLP WR PDNH WKH
DGMXVWPHQWSRVVLEOH
 5LJKW IURP ELUWK WR GHDWK WKH LQGLYLGXDO KDV WR PDNH
DGMXVWPHQW ZLWK WKH HQYLURQPHQW :KHWKHU OLIH ZRXOG EHFRPH
JRRGRUEDG3HUVRQDOLW\ZRXOGEHKDUPRQLRXVRUGLVKDUPRQLRXV
PDQ ZLOO DFKLHYH VRPHWKLQJ RU EHFRPH QRUPDO RU D DEQRUPDO ²
DOO GHSHQG XSRQ KLV DGDSWDELOLW\ (YHU\ERG\ KDV VRPH
GLVVDWLVIDFWLRQ DERXW WKH SUHVHQW FLUFXPVWDQFHV RU VLWXDWLRQ ,W
WKH\ GR QRW JHW SURSHU VROXWLRQ WKH SUREOHP WKH\ H[SHULHQFH
DQ[LHW\UHVLVWHQHVVDQGWKHVHQVHRIIDLOXUH6RPHSHRSOHDFFHSW
WKLV VLWXDWLRQ DQG IHHO VDWLVILHG VRPH DWWHPSW WR EULQJ RXW WKH
VROXWLRQWKHSUREOHPE\XVLQJFHUWDLQWHFKQLTXHV
 (YHU\ERG\KDVVRPHGLIILFXOW\RUSUREOHPDQGKHDWWHPSWV
WREULQJRXWVROXWLRQRIKLVSUREOHP(J7KHRIILFHUWKHDFNV´KDV
KH FDQ EH SRSXODU DPRQJVW ZRUNHUV " 7KH FKLOG H[SHULHQFHV
DQ[LHW\WKDWZK\,KDYHWKHVHQVHRIGLVJXVWWRZDUGVP\IDWKHU"
HWF 7KXV DGMXVWPHQW EHFRPHV QHFHVVDU\ WR EULQJ RXW WKH
VROXWLRQRIWKHSUREOHP
 :K\ DGMXVWPHQW LV QHFHVVDU\ " /HKQHU  FXOVHH[SODLQV LW
DVXQGHU

12
 $GMXVWPHQWLVQHFHVVDU\WRXQGHUVWDQGRXUVHOYHV
 $GMXVWPHQWLVQHFHVVDU\WRXQGHUVWDQGRWKHUZHOO
 $GMXVWPHQW LV QHFHVVDU\ WR XQGHUVWDQG WKH ZRUOG
DURXQGXV
 $GMXVWPHQWLVVHOIDFWXDOL]DWLRQ
,W LV FUHDWLYH DGMXVWPHQW LQGLYLGXDO DFKLHYHV HPRWLRQDO
PDWXULW\ WKRUXJK LW ,QGLYLGXDO GRHV HIIHFWLYH EHKDYLRXU
DFFRUGLQJ WR KLV DELOLWLHV DQG LQWHUHVW ,Q VKRUW WR HVWDEOLVK
HIIHFWLYHUHODWLRQVZLWKRWKHUVDQGEULQJRXWVROXWLRQRISHUVRQDO
SK\VLFDO DQG PHQWDO KHDOWK ZH VKRXOG VWXG\ WKH SURFHVV RI
DGMXVWPHQW

 &KDUDFWHULVWLFVRIDGMXVWPHQW
 $GMXVWPHQWDFRQWLQXRXVSURFHVV
$GMXVWPHQW DFTXLUHG LQ SUHVHQW VLWXDWLRQ
EHFRPHV VWDEOH LV QRW WUXH $V WKH VLWXDWLRQ DQG
FLUFXPVWDQFHV FKDQJH WKH LQGLYLGXDO KDV WR PDNH
FRQVFLRXV DWWHPSWV HJ LQ WKH LQLWLDO VWDJH RI
PDUULDJH WKH ZLIH DQG KXVEDQG KDYH DFTXLUH VDPH
KDELWV DQG WHQGHQFLHV RI DGMXVWPHQW ZKHQ WKH FKLOG
DUULYHV LQ WKH IDPLO\ 7KH\ KDYH WR FKDQJH WKHLU ROG
KDELWV RI DGMXVWPHQW ,W LV LPSURSHU LI KXVEDQG
H[SHFWVVDPHNLQGRIDWWHPSWLRQEHIRUHWKHELUWKRID
FKLOG LQ WKH IDPLO\ ,Q VXFK FKDQJLQJ VLWXDWLRQ LI
KXVEDQG GRHV QRW DGRSW WKHUH ZRXOG EH TXDUUHOV LQ
WKHIDPLO\
 $GMXVWPHQWLVQRWRQHVLGHGSURFHVV
,W LV QRW SURSHU WR EHOLHYH WKDW WKH LQGLYLGXDO
DOZD\V DGRSWV ZLWK WKH HQYLURQPHQW OLNH D EXQFK RI
GXVW $V WKH HQYLURQPHQW PDNHV FKDQJHV LQ WKH

13
LQGLYLGXDO WKH LQGLYLGXDO DOVR PDNHV FKDQJHV LQ KLV
SK\VLFDO VRFLDO DQG SV\FKRORJLFDO HQYLURQPHQW ,Q
WKLV ZD\ ERWK LQGLYLGXDO DQG HQYLURQPHQW ,Q WKLV
ZD\ ERWK LQGLYLGXDO DQG HQYLURQPHQW XQGHUJR
FKDQJLQJ $V WKH FLUFXPVWDQFHV FKDQJH RXU
EHKDYLRXU XQGHUJRHV FKDQJH DQG VXFK FKDQJH LQ
EHKDYLRXU DIIHFW DEOH HQYLURQPHQW 7KXV DGMXVWPHQW
LVQRWRQHVLGHGSURFHVV
$VDUHVXOWRIPXWXDOLQWHUDFWLRQZHKDYHQRYHO
H[SHULHQFHV LQ OLIH (J %\ PHHWLQJ VRPH SHRSOH ZH
IHHO SOHDVXUH UHVSHFW DQG KRQRXU :H IHHO SOHDVXUH
UHVSHFWDQGKRQRXU:HIHHOOLNHPHHWLQJVXFKSHRSOH
YHU\ RIWHQ %\ VHHLQJ VRPH SHRSOH ZH IHHO GLVJXVWHG
ZH DOZD\V DYRLGH VXFK SHRSOH 7KXV VRFLDO UHODWLRQV
DUHSRWHQWLDOWUDLWVRILQGLYLGXDO
 7KHLQGLYLGXDODQGWKHZRUHGERWKDUHFRQVWDQWO\
FKDQJLQJ
6RPHWLPHV WKH FKDQJHV LQ WKHHQYLURQPHQW DUH
VRPLOGWKDWWKHDWWHPSWVRIDGMXVWPHQWE\LQGLYLGXDO
DUH QRW PHQHILVWHG RSHQO\ LQ IDFW LQVWHDG RI FKDQJH
WKH DEVHQFH RI FKDQJH FUHDWH WKH SUREOHPV RI
DGMXVWPHQW $GMXVWPHQW LV QHFHVVDU\ LQ WKH FKDUJH
DQG WKH DEVHQFH RI FKDQJH 7KH VXEVWDQFH RI WKH
VWXG\RIDGMXVWPHQWOLHVLQVXFKUHODWLRQVKLS
  $GMXVWPHQWLVVHOISHUFHSWLRQ
$GMXVWPHQWLVQRWDSDVVLYHSURFHVVRIDGDSWLQJ
ZLWK WKH IDFWRUV DIIHFWLQJ RXUVHOYHV ,W LV LQGLYLGXDO
GHYHORSPHQW RI KLV ZD\V RI LQWHUSUHWLQJ ,W LV DQ
DWWHPSW WR JHW FRQVLVWHQFW\ DQG RUJDQL]DWLRQ E\
PDLQWDLQJ JRDO UHDVRQ DQG LQGLYLGXDOV SHFXODULWLHV

14
,W LV D FUHDWLYH DGMXVWPHQW ,QGLYLGXDOV HPRWLRQDO
PDWXULW\ GHYHORSV WKURXJK LW WKH EHKDYHV SURSHUO\
DFFRUGLQJWRKLVDELOLWLHVDQGLQWHUHVW
  $GMXVWPHQWLVDGHYHORSPHQWDOSURFHVV
,Q WKH VSDQ RI OLIH GHYHORSPHQW WKH LQGLYLGXDO
SDVVHV WKURXJK YDULRXV VWDJHV :LWK WKH FKDQJH RI
DJH WKH VLWXDWLRQ DOVR FKDQJHV 7KHUH DUH GLIIHUHQW
SUREOHPVRIGLIIHUHQWVWDJHVRIOLIH$VWKHLQGLYLGXDO·V
DGMXVWPHQW ZRUOG FKDQJHV WKH LPSRUWDQFH RI
FKDOOHQJHV DJDLQVW DGMXVWPHQW DQG SULRULWLHV RI
DGMXVWPHQW DOVR FKDQJHV LQ WKH FKLOGKRRG WKH FKLOG
KDV WR PDNH DGMXVWPHQW ZLWK SDUHVQWV HOGHUV DQG
VLEOLQJV ,Q WKH ODWHU FKLOGKRRG KH JRHV WR GHVSLWH
DQG KDV WR DGMXVW ZLWK WHDFKHUV DQG RWKHU IDFWRUV RI
VFKRRO ZRUOG $IWHU WKH FRPSHWLWLRQ RI HGXFDWLRQ KH
MRLQV VRPH SURIHVVLRQ DQG KDV WR HVWDEOLVK SURSHU
UHODWLRQV ZLWK SURIHVVLRQDO SHUVRQV :KHQ WKH
PDUULHGOLIHEHJLQVWKHQHHGDULVHVWRDGMXVWZLWKOLIH
SDUWQHUDQGRWKHUIDFWRUV,QDOOWKHVHFLUFXPVWDQFHV
WKH LQWHJUDWHG SHUVRQDOLW\ RI LQGLYLGXDO ,W LV D VKHHU
LPDJLQDWLRQWKDWWKHLQGLYLGXDOZRXOGDFKLHYH3HUIHFW
DGMXVWPHQWLQDOOFLUFXPVWDQFHVDQGDOOIDFWRUV

&KDUDFWHULVWLFVRIVDWLVIDFWRU\DGMXVWPHQW
 2Q WKH EDVLV RI DERUD GLVFXVVLRQ WKH FKDUDFWHULVWLRQV RI
VDWLVIDFWRU\DGMXVWPHQWFDQEHPHQWLRQHGDVXQGHU
 6HOIDZDUHQHVV
6DWLVIDFWRULO\ DGMXVWHG SHUVRQ LV DZDUH RI KLV SHFXOLDULWLHV
DQG OLPLWDWLRQV +H LV FRQVFLRXV RI KLV IXQGDPHQWDO
DELOLWLHV WKLV IDPLOLDU ZLWK KLV VXFFHVV DQG IDLOXUHV

15
&RQVHTXHQWO\ KH PDNHV QHFHVVDU\ FKDQJHV LQ KLPVHOI
DFFRUGLQJWRWKHQHHG
 6HOIVXIILFLHQF\
6XFK  SHUVRQV PDLQO\ GHSHQG XSRQ KLPVHOI UDWKHU
WKDQ RWKHUV +H LV VHOI VXIILFLHQW DQG QRW SDUDVLWH +H
NQRZV ZKDW KH LV FDSDEOH RI GRLQJ FRQVHTXHQWO\ KH XVHU
KLV RZQ RULJLQDO LQVLJKW LQ VROYLQJ SUREOHPV +H 7NHV
LQLWLDWLYH LQVWHDG RI ZDLWLQJ IRU RWKHUV DQG DWWHPSWV WR
DFKLHYHJRDO
 6HOIFRQILGHQFH
6HOI FRQILGHQFH SHUVRQ DFKLHYHV VXFFHVVIXO
DGMXVWPHQW6HOIFRQILGHQWSHUVRQLVQRWDIUDLGRIDQ\NLQG
RU KH LV QRW FRQIXVHG +H SURFHHGV WRZDUGV KLV JRDO
ZLWKRXW EHFRPLQJ WKH YLFWLP RI LQWHULRULW\ 6HOI FRQILGHQFH
LVQRWHJR(JRLVVQDOORZZKLOHVHOIFRQILGHQFHLVVROLGDQG
GHHS (OGHUV DQG WHDFKHUV VKRXOG DWWHPSW WR FXOWLYDWH VHOI
FRQILGHQFHLQDFKLOGIURPWKHFKLOGKRRG
 $FFHSWDQFH
6DWLVIDFWRULO\DGMXVWHUSHUVRQVVKRXOGDFFHSWKLVDQG
RWKHU SHUVRQDOLW\ +H WROHUDWHV KLV  RWKHUV PLVWDNHV DQG
OLPLWDWLRQ ZLWK VPLOLQJ IDFH +H XQGHUVWDQGV WKH
LPSRUWDQFHRIDIIHFWLRQ
 6HQVHRI6HFXULW\
7KH SUHFRQGLWLRQ RI VHFXULW\ LV ORYH DQG DIIHFWLRQ
7KH SHUVRQ ZKR LV EURXJKW XS LQ WKH DWPRVSKHUH RI
DIIHFWLRQ ZDUPWK  ORYH FDQ H[SHULHQFH VHFXULW\ DQG FDQ
JLYH VHFXULW\ WR RWKHUV VHFXULW\ SURGXFHV VHOI FRQILGHQFH
$IIHFWLRQ DQG VHFXULW\ DUH QHFHVVDU\ IRU PDLQWDLQLQJ
PHQWDOKHDOWK

16
 6HQVHRIUHVSRQVLELOLW\
:HOO DGMXVWHG SHUVRQ KDV WKH VHQVH RI UHVSRQVLELOLW\
DIWHUKLVHDFKW\SHRIEHKDYLRXU6XFKSHUVRQVGRQRWUXQ
DZD\ IURP WKH UHVSRQVLELOLWLHV HQWUXVWHG WR KLP +H
PDLQWDLQVUHVSRQVLELOLW\FRQVFLRXVO\RXWFDUU\LWRXW+HLV
LQIRUPHURIWKHPHDQLQJIXOQHVVRIZKDWHYHUKHGRHV+HLV
DZDUH RI KLV RZQ GHGV DQG RWKHUV GHHGV 7KH XWLOLW\ RI
HGXFDWLRQGHYHORSLQJVHQVHRIUHVSRQVLELOLW\LQWKHPRGHUQ
LQGXVWULDOVRFLHW\LVQRWVPDOOWKLQJ
 *RDOGLUHFWHGQHVV
:HOODGMXVWHGSHUVRQKDVIXOONQRZOHGJHRIDFKLHYLQJ
KLVJRDO:KHQWKHLQGLYLGXDOLVRULHQWHGWRZDUGVKLVJRDO
KH FDQ DFKLHYH LW 7KH SHUVRQ ZKR LV RULHQWHG WRZDUGV KLV
JRDO KH FDQ PDNH DWWHPSWV WR DFKLHYH JRDO LQ ULJKW
GLUHFWLRQ *RDO GLUHFWHGQHVV LV DQ LQHYLWDEOH FRQGLWLRQ RI
PDNLQJ SURJUHVVLYH DFDGHPLF ILHOG HVWDEOLVKLQJ JRRG
LQWHUSHUVRQDO UHODWLRQV DFKLHYLQJ VXFFHVV LQ PDUULHG OLIH
UHVROYLQJFRQIOLFWVRULQFUHDVLQJIUXVWUDWLRQWROHUDQFH
 %DODQFHLQDOOWLPHV
6DWLVIDFWRU\DGMXVWPHQWH[SHFWVEDODQFHIURPSHUVRQ
LQSDVWSUHVHQWDQGIXWXUH2QHVKRXOGWDNHDGYDQWDJHRI
VXFFHVVIXO H[SHULHQFHV RI SDVW ,W LV QRW QHFHVVDU\ WR
FKDQJH WKH VXFFHVV RI SUHVHQW LQ WKH IDLOXUH E\
UHPHPEHULQJ WKH PLVWDNHV DUH IUXVWUDWLRQ 5LFK SUHVHQW
FDQPDNHWKHIXWXUHSURPLVLQJ

6HOIFRQFHSWUHODWLQJWRDGMXVWPHQW
 +RZ WR DFKLHYH JRRG DGMXVWPHQW LV D SUREOHP IRU HYHU\
SHUVRQ EXW DOO KLV WHFKQLTXHV GR QRW EHFRPH HIIHFWLYH DQG
VXFFHVVIXO (J YOXVKLQJ \RXQJ JLYH EHFRPLQJ LVRODWH KDYLQJ

17
GD\ GUHDPV RI PDUU\LQJ WKH \RXJK RI KHU OLNHV GR QRW DFKLHYH
VXFFHVV$Q[LRXVSHUVRQWULHVWRIRUJHWKLVDQ[LHWE\LQYROYLQJLQ
GUXJV ZLOO QLW DFKLHYH VXFFHVV LQ DGMXVWPHQW 6XFK DWWHPSWV RI
DGMXVWPHQW DUH QRW SURSHU 7KH DWWHPSWV RI DGMXVWPHQW GHSHQG
RQWKUHHWKLQJV
 ,QVLJKWDERXWVHOI
7KH P\VWHU\ RI DGMXVWPHQW OLHV LQ NQRZULQJ RQHVHOI
,QGLYXDO VKRXOG NQRZ KLPVHOI 7KDW PHDQV WKH PXVW KDYH
SURSHU KLPVHOI 7KDW PHDQV KH PXVW KDYH SURSHU LQVLJKW
IRUJRRGDGMXVWPHQWRQHVKRXOGUHFRJQL]HKLVDELOLWLHVDQG
OLPLWDWLRQV NQRZ WKH\ VHOI RU DFFHSW \RXU VHOI PHDQV
DFWLYDWLQJ LQVLJKW IRU NQRZLQJ VHOI )LUVW DOO LQGLYLGXDO
VKRXOGNQRZKLVSUREOHPVDOOEHKDYLRXU7KHVHFRQGWKLQJ
LV VHOIDQDO\VLV ZKLFK JLYHV LQVLJKW IRU WKH GROXWLRQ
SUREOHPV RU ZH DUH DEOH WR DVVHVV RXU QHHGV LQ D QRYHO
ZD\V,QWKLVZD\LQGLYLGXDOILQGVPDQ\SRVVLELOLWLHVRIWKH
VROXWLRQ RI KLV SUREOHP LQ WKH SODFH RI RQO\ RQH SRVVLEOH
VROXWLRQ7KLUGWKLQJLVWKDWZHPXVWEHDZDUHRIRXUSODFH
LQ WKH VRFLHW\ 2XU VRFLDO H[LVWHQFH LV D QHWZRUN RI LQWHU
UHODWLRQ DQG PXWXDO UHODWLRQV 7KHUHIRUH WR NQRZ RXUVHOI
ZHPXVWNQRZRWKHUVZHOO:HPXVWNQRZRXULQIOXHQFHRQ
RWKHUDQGRWKHUVLQIOXHQFHRQXV
 ,QVLJKWDERXWRWKHUV
:HOODGMXVWHGSHUVRQLVQRWVHOILVK+HWULHVWRVDWLVI\
KLV QHHGV EXW QRW DW WKH FRVW RI RWKHUV +H UHVROYHV KLV
SUREOHPV EXW QRW E\ LQFUHDVLQJ WKH SUREOHPV RI RWKHUV
7KXV LQGLYLGXDO VKRXOG EH DZDUH RI RWKHUV QHHGV 
IHHOLQJV ,W D SHUVRQ FXOWXUDO WKH LQVLJKW DERXW RWKHUV KH
FDQ SHUVRQ ZKDW W\SH RI EHKDYLRXU ZRXOG EH GRQH E\
RWKHUV,QWKLVZD\KHFDQSODQKLVRXUEHKDYLRXU+HFDQ

18
XQGHUVWDQG ZKHQ RWKHUV UHTXLUH RXU KHOS V\PSDWK\
IULHQGVKLSHWF,QWKLVZD\WKHUHODWLRQVZLWKRWKHUVEHFRPH
LQWLPDWHDQGGHHS
 7KHLQVLJKWDERXWWKHSUREOHP
7KH LQVLJKW DERXW WKH SUREOHP PHDQV WKH QDWXUH RI
SUREOHP DQG WKH VLWXDWLRQ LQ ZKLFK WKH SUREOHP LV WR EH
VROYHG %\ NQRZLQJ DERXW WKH SUREOHP WKH LQGLYLGXDO FDQ
UHFRJQL]H WKH VHULRXVQHVV RI WKH SUREOHP DQG KH FDQ
H[DPLQH WKH SUREOHP IURP GLIIHUHQW SRLQW RI YLHZ WKH FDQ
WKLQNDERXWWKHSURSHUWRROVWRDFKLHYHJRDO
,Q HYHU\ SHUVRQ·V OLIH WKH SUREOHPV DUH RFFXUULQJ
ZKHQ WKH SUREOHP DULVHV KH VD\V ´LW KDSSHQV OLNH WKDWµ
WKHUH LV QR UHPHG\ WR LWµ ,W WKLQNV OLNH WKLV DQG ODXJKV DW
WKHSUREOHP+HGRHVQRWSD\DWWHQWLRQWRWKHVHULRXVQHVV
RIWKHSUREOHP7KLVLVQRWWKHZD\VRIVROYLQJSUREOHP2Q
WKHFRQWUDU\RQHPXVWWKLQNZK\LWVRKDSSHQV"HJREHVV
SHUVRQ EHOLYHV WKDW WKH H[FHVVLYHO\ IDW \RXWK DQ QRW
VHOHFWHGE\\RXQJJLUE,QWKLVZD\KHDFFHSWVWKHVLWXDWLRQ
7KLVLVQRWSURSHUDGMXVWPHQW+HVKRXOGWKLQN ZK\ VRPH
RWKHUROGHVV\RXQJDUHSRSXODUDPRQJVWJLUOV",WKHWKLQNV
LQWKLVZD\KHFDQFXOWLYDWHWKHLQVLJKWDWKLVSUREOHP

)DFWRUVRIDGMXVWPHQW
 7KHPDLQIDFWRUVDIIHFWLQJDGMXVWPHQWDUHDVXQGHU
 1HHGV
1HHGV DUH PRWLYDWLRQV RI EHKDYLRXU DFFRUGLQJ WR
OHKQHU  FXEH 1HHGV DUH VXFK LQWHUQDO  H[WHUQDO
FRQGLWLRQV ZKLFK DUH PHQHIHVWHG LQ EHKDYRXU DQG
FRQWLQXHVWLOOWKHEDODQFHLVHVWDEOLVKHG

19
1HHGLVDQH[SHULHQFHRIEUHDNLQEDODQFHGHSULYDWLRQ
RI ORVV RI VRPHWKLQJ 6XFK H[SHULHQFH SURGXFHV WHQVLRQ
DQG FRQWLQXHV WLOO WKH QHHGV DUH VDWLVILHG 7KH VDWLVIDFWLRQ
RIQHHGVJLYHUHOLHIWRWKHLQGLYLGXDO
)URWKHSRLQWRIYLHZRIDGMXVWPHQWWKHQHHGVFDQEH
H[SODLQHGDVXQGHU
1HHG DUH WKH PLOLYHV RU SHUVRQDO H[SHULHQFH RI
SK\VLFDORUPHQWDOGHSULYDWLRQ(J7KHQHHGRIKXQJHULV
D ORVV RI TXDQWLW\ RI IRRG LQ WKH ERG\ DQG LW OHDGV WR WKH
EHKDYLRXU RIVDWLVIDFWLRQ RIKXQJHU6XFKDQH[SHULHQFHLV
SHUVRQDO DQG EHKDYLRXU DULVLQJ RXW RI LW LV DOVR GLIIHUHQW
IURPRQHLQGLYLGXDOWRRWKHU
1HHG SURGXFHV GLVVDWLVIDFWLRQ RU WHQVLRQ
FRQVHTXHQWO\ WKH JRDO ZKLFK UHGXFHV VXFK WHQVLRQ RU
GLVVDWLVIDFWLRQ LV JLYHQ SULRULW\ (J +XQJU\ SHUVRQ VHHNV
IRRG,VRODWHGSHUVRQVHHNVFRPSDQ\,WWKHKXQJU\SHUVRQ
JHWV FRPSDQ\ LQVWHDG RI ILDO KH LV GLVWXUEHG 6R WKH
DFWLYLWLHV FRQFHUQLQJ QHHGV EHFRPH JRRG GLUHFWHG DQG
VHOHFWLYH
 )UXVWUDWLRQ
'XHWRVRPHIRUFHVZKHQLQGLYLGXDOJHWVWRWDOIDLOXUH
RU IHDU RI IDLOXUH LQ WKH VDWLVIDFWLRQ RI QHHGV KH IHHOV WKH
VHQVH RI GHIHDW 6XFK D VHQVH RI GHIHDW LV IUXVWUDWLRQ 7KH
UHVXOWV RI IUXVWUDWLRQ DUH DPELYDOHQW ,W PDNHV LQGLYLGXDO
LQVXODWH DLPOHVV DQG DYRLGDQFH RI UHDOLW\ RU LW LV D
FKDOOHQJH WR KLV SHUVRQDOLW\ DQG SUHSDUHV KLP WR PDNH
PRUHHIIRUWVIRUWKHDFKLHYHPHQWRIJRDOV
.UHWFK  .UXWFK ILHOG VWDWHV WKDW ZKHQ WKH SURJUHVV
RI JRDO DFKLHYHPHQW LV LQWHUIHUHG U WHQVLRQ LV QRW XOLHYHG
VXFKDPHQWDOFRQGLWLRQLVIUXVWUDWLRQ

20
)UXVWUDWLRQ DIIHFWV SHUVRQDOLW\ DQG DGMXVWPHQW
SURFHVVSV\FKRORJLVWVKDYHSURYHGLW6RPHIUXVWUDWLRQVDUH
EDVLF DQG DUH GXH WR OHDULQJ SUDGLFHV RI FKLOGUHQ 7KH
SV\FKRORJLVW QDPHV +HDO FRQGXFWHG H[SHULPHQW RQ ZKLWH
UDWV WKH UHVXOW LQGLFDWRU WKDW WKH IUXVWUDWLRQ WR OHUDQFH
LQFUHDVHV LQ VRPH UDWV GXH WR FKLOGKRRG H[SHULHQFHV DQG
WKH\ FRXOG DGMXVW ZLWK HQYLURQPHQW WKH IUXVWUDWLRQ
WROHUDQFH LQFUHDVHG ZLWK WKH LQFUHDVHV LQ DJH
&RQVHTXHQWO\ WKH SUREOHPV RI DGMXVWPHQW GR QRW EHFRPH
VHULRXV
)ROORZLQJ WKUHH ZD\V DUH SURSHU IRU DGMXVWLQJ LQ
HQYLURQPHQW
 &RQWUROWKHVLWXDWLRQZKLFKSURGXFHVIUXVWUDWLRQ
 $YRLGHWKHVLWXDWLRQSURGXFLQJIUXVWUDWLRQ
 5HPRYHWKHIUXVWUDWLRQE\EHKDYLRXU
 ,QWHUSHUVRQDOUHODWLRQVKLS
$OO WKH VRFLDO UHODWLRQV LQYROYH WKH UHODWLRQ EHWZHHQ
WZRRUPRUHSHUVRQV2XUEHKDYLRXULQIOXHQFHVRWKHUVDQG
LQ WXUQ RWKHUV EHKDYLRXU DIIHFW RXU EHKDYLRXU :H FDQ
XQGHUVWDQHG WKH LPSRUWDQFH RI LQWHUDFWLRQ ZKHQ WKHUH LV
FRPSOHWHDEVHQFHRILQWHUDFWLRQRUGHFUHDVHLQLQWHUDFWLRQ
,WUDUHO\KDSSHQVZKHQWKHUHLVQRKXPDQLQWHUDFWLRQ
  7KHUHDUHILYHIDFWRUVRILQWHUDFWLRQ
 ([SUHVVLRQ&RPPXQLFDWLRQ
 )HHGEDFN
 6RFLDOH[SHFWDWLRQV
 5ROHEHKDYLRXU
 0XWXDOVDWLVIDFWLRQ

21
 7KHNQRZOHGJHRIZD\VRIDGMXVWPHQW
:KHQ WKH SHUVRQDO DGMXVWPHQW EHFRPHV GLIILFXOW LW
GHPDQGV LQVLJKW VNLOO $V WKH LQGLYLGXDO EHFRPHV WUDLQHH
DQG VRFLDO WKH SHUVRQDO DGMXVWPHQW EHFRPHV VDWLVIDFWRU\
DQGGHYHORSLQJ
,Q SHUVRQDO DGMXVWPHQW WKH LQGLYLGXDO PXVW OHDUQ WR
HVWDEOLVKUHODWLRQVZLWKRWKHUVDQGVDWLVI\KLVQHHGVLQWKH
SUHVHQW VLWXDWLRQ 7KLV FDQ EH GRQH E\ LQGLYLGXDO KLPVHOI
(J %\ FUDPLQJ WKH JROGHQ VHQWHQFHV DERXW KDSS\
PDUULDJHRUKDOIKHDUWHGDSSOLFDWLRQRIFHUWDLQVXJJHVWLRQV
DERXW PDUULDJH WKH PDULWDO DGMXVWPHQW FDQQRW EH
DFKLHYHG 6RPHWLPHV WKH LQVLVWHQFH RI VXFK UXOHV RI
PDUULHGOLIHPDNHVWKHSHUVRQLQWHUQDOO\KDSS\
+RZVRHYHU WKH UXOHV PD\ EH JRRG EXW LI WKH SHUVRQ
KDV QRW WKH VHQVH RI GLVFULPLQDWLRQ WKH UXOHV ZRXOG
EHFRPHHYLOIRUWKHOLIH
,WWRQHFHVVDU\WRKDYHWKHNQRZOHGJHRISV\FKRORJLFDO
DSSURDFKHV WR DGMXVWPHQW :KLFK LQYROYHV WKHRUHWLFDO
NQRZOHGJH RI SHUVRQDO DGMXVWPHQW NQRZOHGJH DERXW WKH
VHOIDQGRWKHUVDQGXQGHUVWDQGLQJWKHSUREOHPVRIOLIH

6FLHQWLILFQDWXUHRIDGMXVWPHQW
 7KH VWXG\ RI KXPDQ EHKDYLRXU DQG SUREOHPV YHU\
FRPSOHVH 7KH VLPSOLFLW\ RI SK\VLFDO  FKHPLFDO VFLHQFHV LV QRW
IRXQG LQ VRFLDO VFLHQFHV ,W LV GLIILFXOW WR FXOWLYDWH WKH VFLHQWLILF
SRLQW RI YLHZ DERXW RXU EHKDYLRXU DQG SUREOHPV ,Q PDQ\
H[SODQDWLRQV RI KXPDQ EHKDYLRXU WKHUH DUH VXSHUVWLWLRQV
SUHMXGLFHV SUHFRQFHLYHGQDWLRQV%HVLGHVPRVWRIWKHSHUVRQV
EHOLHYH WKDW LW LV DOZD\V OLNH WKDW RU PDQ ILHOG WKDW WKHUH LV QRW
FDXVHHIIHFWUHODWLRQVKLSLQKLVEHKDYLRXU,WLVPHUHO\DFFLGHQW

22
 7KHUHDUHWZRQHHGVRIVFLHQWLILFVWXG\RIDGMVXWPHQW
 7KH DFFHSWDQFH RI WKH UXOH RI FDXVDWLRQ 7KHUH DUH
UHDVRQ EHKLQG RXU EHKDYLRXU DUH IHHOLQJV ,W LV DOZD\V
UHODWHGZLWKVRPHSULRULQFLGHQW
 7R EULQJ RXW FKDQJH LQ EHKDYLRXU RU FRQWURO EHKDYLRXU
ZHPXVWWU\WRNQRZLWVFDXVHVDQGWU\WRUHPRYHWKHP
 7KHIDFWVRIFDXVDWLRQ
7KHUH DUH PDQ\ UHDVRQV IRU RXU H[SHULHQFHV DQG
IHHOLQJV (J ,I WKH VFROGLQJ PDNHV WKH FKLOG FU\ ZH PXVW
ILQGRXWWKDWVFROGLQJDORQHLVQRWWKHFDXVHRIFU\LQJ7KH
UHODWLRQ RI D FKLOG ZLWK WKH SHUVRQ ZKR VFROGHG RXU WKH
FLUFXPVWDQFHV DW WKH WLPH RI FROGLQJ HWF PXVW EH WDNHQ
LQWR FRQVLGHUDWLRQ WR H[SODLQ WKH LQFLGHQW RI RUJLQJ RI D
FKLOG 7KXV WKHUH LV QRW RQO\ RQH FLUFXPVWDQFH IRU WKH
FDXVH RI FU\LQJ ZH VKRXOG DQDO\VH DOO WKH IDFWRUV RI VXFK
LQFLGHQW
7KHUH LV XQLW\ LQ WKH FDXVH EHKLQG WKH EHKDYLRXU
$FFHSWLQJ WKLV IDFW ZH PD\ ILQG QHZ DQJOH RI
XQGHUVWDQGLQJ VRFLDOO\ XQDFFHSWDEOH EHKDYLRXU (J LI WKH
FKLOG LV VWHDGLQJ ZH GR QRW VD\ WKDW KH LV ZLFNHG RU FDQ
QRWEHLPSURYHG7KHDEQRUPDOLW\RIDFKLOGLVWKHQDWXUDO
UHVXOW RI PDQ\ FLUFXPVWDQFHV ZH VKRXOG DQDO\VH WKHVH
FLUFXPVWDQFHV
7R XQGHUVWDQG WKH EHKDYLRXU RI KXPDQ EHKDYLRXU
ZH PXVW H[DPLQH WKH LPPHGLDWH G\QDPLF IDFWRUV
XQGHUO\LQJ EHKDYLRXU :H VKRXOG WDNH LQWR FRQVLGHUDWLRQ
:HVKRXOGWDNHLQWRFRQVLGHUDWLRQWKHFLUFXPVWDQFHVDWWKH
WLPH RI KDSSHQLQJ SDUWLFXODU HYHQW LQGLYLGXDO·V QHHGV KLV
SV\FKRORJ\ VWUXFWXUH DQG WKH SUHYLRXV H[SHULHQFHV
LQGLYLGXDOUHODWHZLWKWKHHYHQW

23
 :HVKRXOGVWXG\HYHU\EHKDYLRXULQGHSHQGHQWO\
,W LV QRW WUXH WR SUHVVXUH WKDW WKHUH LV RQO\ PH
H[SODQDWLRQ IRU VLPLODU EHKDYLRXU HJ ,Q RQH \RXWK
OHDGHUVKLS LV WKH UHVXOW RI UHDULQJ SUDFWLFHV ZKLOH LQ VRPH
RWKHU,WPD\EHFRPSHQVDWLRQIRULQIHULRULW\FRPSOH[,IWKH
VWXGHQW GRHV QRW UHDO IRU H[DPLQH WKHUH PD\ EH PDQ\
UHDVRQV VXFK DV ORRN RI LQWHUHVW ODFN RI LQWHUHVW ODFN RI
DELOLW\RUFDUHOHVVQHVV

)LHOGRIDGMXVWPHQW
 7KHILHOGVZKLFKSURGXDWKHSUREOHPVRIDGMXVWPHQWDUHDV
XQGHU
 1HHGVDQGDGMXVWPHQW
 $GMXVWPHQWZLWKVWXG\MREIDPLO\GXWLHVHWF
 $GMXVWPHQWZLWKRWKHUSHRSOHDQGLQSHUVRQDOOLIH RWKHU
SHRSOH LQFOXGHV HOGHUV IULHQGV QHLJKERXUV RSSRQHQWV
HWF 
 $GMXVWPHQW ZLWK LQWDQD LGHDO YDOXHV PRUDO DQG
UHOLJLRXVEHOLHIVHWF

 1HHGVIUXVWUDWLRQFRQIOLFWDQGDWWHPSWVRIDGMXVWPHQW
0DQ KDV PXOWLSOH QHHGV +H FDQ QRW VDWLVI\ DOO KLV
QHHGV7KHREVWDFOHVDULVHLQWKHVDWLVIDFWLRQRIQHHGVGXH
WR SHUVRQDO OLPLWDWLRQV VRFLDO QRUPV RU RWKHU H[WHUQDO
IDFWRUV0DQLVDOZD\VPDNLQJHIIRUWVIRUWKHVDWLVIDFWLRQRI
SK\VLFDOQHHGVVRFLDOQHHGVHWFEXWDOOVXFKQHHGVDUHQRW
VDWLVILHG GLVVDWLVIDFWLRQ RI QHHGV SURGXFH IUXVWUDWLRQ
FRQIOLFWDQGVWUHVV

24
 $GMXVWPHQWLQWKHILHOGRIGXWLHVDQGDFWLYLWLHVRIOLIH
$GMXVWPHQW LV D FRQWLQXRXV SURFHVV ZH FDQQRW
EHOLHYH WKDW D SHUVRQ DGMXVWHG LQ RQH VLWXDWLRQ ZLOO EH
DGMXVWHG LQ DOO RWKHU VLWXDWLRQ $V WKH SHUVRQ JURZV KLV
WDVNV GXWLHV DQG DFWLYLWLHV XQGHUJR FKDQJH ,Q DOO VXFK
ILHOGV PDQ KDV WR PDNH QHZ HIIRUWV IRU DGMXVWLQJ 7KH
SHUVRQ VWXGLHV LQ WKH VFKRRO GRHV VRPH MRE RU SURGHVVLRQ
DQG FRPHV LQ FRQWDFW ZLWK RWKHUV LQ VRFLHW\ $FFRUGLQJ WR
VRFLDO H[SHFWDWLRQ KH KDV WR SHUIRUP YDULRXV GXWLHV DV
IDWKHU KXVEDQG RZQHU RU VHUYDQW 7KXV KH KDV WR PDNH
DGMXVWPHQWLQVFKRROSURIHVVLRQMREVRFLHW\HWF
 )DPLO\OLIH 2OGDJH
,QDGGLWLRQWRSXEOLFOLIHWKHSHUVRQDOIDPLO\OLIHDQG
PDUULHG OLIH SURGXFH PDQ\ SUREOHPV RI DGMXVWPHQW 7KHUH
DUHPDQ\SUREOHPVLQOLIHVXFKDVFKLOGUHDULQJVHOHFWLRQRI
PDWHWKHUHODWLRQVEHWZHHQKXVEDQGDQGZLIHVHHOLIHROG
DJHHWF,QWKHROGDJHWKHGHIHFWVRIVHQVRU\RUJDQVKDQGV
 OHJV GLVWXUE WKH PHQWDO SHDFH 7KH LQGLYLGXDO KDV WR
DGMXVWZLWKVXFKFLUFXPVWDQFHV
 ,QGLYLGXDOGLIIHUHQFHVDQGDGMXVWPHQW
7KHVRXUFHRISHUVRQDODGMXVWPHQWLVWKDWZHDUHQRW
SODFLGO\ ZD\V LQ WKH VDPH VLWXDWLRQ RXW ZH KDYH QR
FRPSHWHQF\WREHKDYHLQWKHVDPHWRDOOLQGLYLGXDOV7KXV
WKH LQGLYLGXDO GLIIHUHQFHV FUHDWH WKH SUREOHPV RI
DGMXVWPHQW6XFKGLIIHUHQFHDUHRIWZRW\SHV
 'LIIHUHQFHVLQWKHFLUFXPVWDQFHDQG
 'LIIHUHQFHVLQSHUVRQV LQGLYLGXDOGLIIHUHQFHV 
7KDW LV ZK\ ZH VKRXOG REWDLQ WKH H[SODQDWLRQ RI VXFK
GLIIHUHQFHV

25
 :KRLVFDOOHGZHOODGMXVWHGSHUVRQ
+RZ LV KLV EHKDYLRXU " :KDW LV WKH PHDQLQJ RI
PDWXUHG SHUVRQ :H VKRXOG GLVFXVV WKHVH SRLQWV VR WKDW
ZHFDQDVVHVVWKHDWWHPSWVRIDGMXVWPHQW
 0HQWDOKHDOWKDQGSV\FKRWKHUDS\
:KHQ WKH LQGLYLGXDO IDLOV LQ KLV DWWHPSWV WR DGMXVW
KH LV PHQWDOO\ GLVWUXEH RU EHFRPHV PDWXDOO\ DOO KLV
WUHDWPHQW PXVW EH SV\FKRORJLFDO 6R WKH VWXG\ RI
DGMXVWPHQW LQFOXGHV PXWXDO KHDOWK DQG WHFKQLTXHV RI
SV\FKRWKHUDS\

([SODQDWLRQRIILHOGVFRQWDLQHULQWKLVVWXG\
 7KHSUHVHQWVWXG\LVDERXWWKHIDPLO\ VRFLDODGMXVWPHQW
RI ZRUNLQJ DQG QRQZRUNLQJ ZRPHQ 7R ILQG RXW WKH OHYHO RI
DGMXVWPHQW %HOO DGMXVWPHQW LQYHQWRU\ LV XVHG 7KLV LQYHQWRU\
FRQWDLQVWKHIROORZLQJIRXUILHOGVRIDGMXVWPHQW
 )DPLO\DGMXVWPHQW
 +HDOWKDGMXVWPHQW
 6RFLDODGMXVWPHQW
 (PRWLRQDODGMXVWPHQW
 )DPLO\DGMXVWPHQW
7KH FKLOG·V ELUWK WDNHV SODFH LQ IDPLO\ ,Q WKH IDPLO\
WKH FKLOG KDV WR VWD\ ZLWK SDUHQWV VLEOLQJV DQG UHODWLYHV
7KH FKLOG·V ILUVW LQWHUDFWLRQ LV ZLWK PRWKHU DQG KLV VRFLDO
OLIHEHJLQVZLWKWKHUHODWLRQVZLWKPRWKHU7KHFKLOGKDVWR
PDNHDGMXVWPHQWZLWKWKHSDUHQWVLQWKHLQLWLDOVWDJH)RU
JRRG DGMXVWPHQW RI D FKLOO LQ IDPLO\ WKH IUHH DQG
XQFRQGLWLRQHG ORYH RI SDUHQWV DQG JRRG KRPH DWPRVSKHUH
PXVW EH FUHDWHG HYHU\ FKLOO KHU WR DGMXVW ZLWK KLV IDPLO\
WUDGLWLRQV 7KH EHVW IDPLO\ HQYLURQPHQW PDNHV WKH FKLOO

26
VHOIVXIILFLHQW RXW KH REWDLQV LQVLJKW  VNLOO IRU VROYLQJ
IXWXUHSUREOHPV7KHLQFHQWLYHVIURPWKHIDPLO\IRUPDNLQJ
DFKLHYHPHQWDQGWKHVDWLVIDFWLRQRI KLV QHHGVHWFKHOSWKH
DGMXVWPHQWRIDFKLOOLQIDPLO\
 +HDOWKDGMXVWPHQW
+HDOWK DGMXVWPHQW VWXGLHV DERXW WKH PDLQWHQDQFH
SK\VLFDO  PHQWDO KHDOWK 7KH VWXG\ RI KHDOWK DGMXVWPHQW
LQFOXGHV WKH SV\FKRORJLFDO DVSHFWV DIIHFWLQJ WKH SK\VLFDO
KHDOWKWKHFDXVHVRISV\FKRVRPDWLFGLVRUWHUVLWVGLDJQRVLV
 WUHDWPHQW IRRG KDELW HWF $OO WKHVH WKLQJV DUH VWXGLHV WR
PDNH SHRSOH DZDUH RI WKH LPSRUWDQFH RI KHDOWK ,W VWXGLHV
KRZ IRU DQ LQGLYLGXDO FDQ OLYH ZLWK KLV GHFHDVHV ,W LV DQ
LPSRUWDQW WKLQJ KRZ LQGLYLGXDO LV UHDG\ WR PDNH
DGMXVWPHQW ZLWK VPDOO  ELJ LOOQHVVHV 7KXV LQ KHDOWK
DGMXVWPHQWLQGLYLGXDODWWHPSWVWRDGMXVWZLWKKLVSK\VLFDO
DQGPHQWDOGHFHDVHV
7KURXJKWKHVWXG\RIKHDOWKDGMXVWPHQWWKHFKLOGFDQ
JHWJXLGDQFHDERXWOLYLQJDKHDOWK\OLIH
 6RFLDODGMXVWPHQW
0DQ LV NQRZQ DV VRFLDO DQLPDO EHFDXVH WKHH LV QR
H[LVWHQFH RI LQGLYLGXDO ZLWKRXW VRFLHW\ 7KH IDPLO\
LQIOXHQFHVVRFLDOGHYHORSPHQWLIWKHFKLOGLVEURXJKW XSLQ
WKH LQVWLWXWLRQ WKH HIIHFWV RI LQVWLWXWLRQ LV IRXQG PRUH RQ
FKLOG+XPDQFKLOGLVSDUDVLWHIRUDORQJWLPHDQGWKHUHIRUH
WKH VRFLDO ZKLFK VDWLVILHV KLV QHHGV DIIHFW WKH FKLOG +H
OHDUQ WR EHKDYH DFFRUGLQJ WR WKH H[SHFWDWLRQ RI VRFLHW\ E\
LGHQWLI\LQJKLPVHOIZLWKWKHPHPEHUVRIWKHIDPLO\
 (PRWLRQDODGMXVWPHQW
7KH GHYHORSPHQW SURFHVV LV UHODWHG ZLWK WKH
LQGLYLGXDO IURP KLV ELUWK WR GHDWK 0DQ LV RQH HPRWLRQDO

27
DQLPDO 7KH HPRWLRQV DQG IHHOLQJV PDNH FKLOGV  OLIH
FRORXUIXO 7R DGMXVW VXFFHVVIXOO\ ZLWK KLPVHOI DQG WKH
ZRUOG WKH LQGLYLGXDO PXVW OHDUQ WR H[SUHVV KLV HPRWLRQV
SURSHUO\ 7KLV KHOSV HPRWLRQDO DGMXVWPHQW $IWHU ELUWK WKH
FKLOG OLYHV LQ WKH IDPLO\ IRU D ORQJ WLPH DQG VR IDPLO\
LQIOXHQFHV PXFK RQ HPRWLRQDO GHYHORSPHQW 7KH FKLOGV
WKRXJKWV DWWLWXGHV EHOLHIV HWF DUH VKVSHG E\ WKH VRFLHW\
+HDWWHPSWVWRDGMXVWZLWKFROGKRWQRLFH RWKHUIDFWRUV
RIHQYLURQPHQW

 0HQWDO+HDOWK
 0HQWDO KHDOWK LV D EXUQLQJ SUREOHP RI WKH VRFLHW\ ,I WKH
PDQZDQWVWREHKDSS\DQGVXFFHVVIXOKHPXVWOHDUQWKHDUWRI
UHPDLQLQJ KHDOWK\ 3HUVRQ FDQ NQRZ KLPVHOI RU XQGHUVWDQG
KLPVHOI +H FDQ UHFRJQL]H EHWZHHQ ULJKW DQG ZURQJ DQG FDQ
FDOFXODWH WKH IXWXUH HIIHFWV RI KLV GHDOV +H KDV FRQILGHQFH LQ
KLPVHOI DUH VXFK LQGLYLGXDO IHHOV WKDW KH KDV D SODFH LQ WKH
ZRUOG0DQ\LQGLYLGXDOVEHOLHYHWKHPVHOYHVZHHN7KH\ILQHIDXOW
ZLWK WKHPVHOYHV IRU WKH IDLOXUH RI FDVK WDVN 6XFK LQGLYLGXDOV
YHULI\ WKH FRUUHFWQHVV RI WKHLU WDVN YHU\ RIWHQ 7KH\ GR QRW KDYH
WUXVWLQWKHPVHOYHVRUWKHLUZRUN
 0HQWDO KHDOWK LV DV LPSRUWDQW DV SK\VLFDO KHDOWK VWLOH
KRZHYHUPRVWRIWKHSHUVRQVDUHQRWFRQVFLRXVDZDUHQHVVDQG
ZRUULHG DERXW WKHLU PHQWDO KHDOWK 7KH PDLQ UHDVRQ LV WKDW ZH
FDQQRW HDVLO\ LGHQWLI\ PHQWDO KHDOWK DQG  PHQWDO LOOQHVV
3K\VLFDOKDQGLFDSRUSK\VLFDOGLIILFXOWLHVFDQEHHDVLO\LGHQWLILHG
RUH[SHULHQFHGEXWZHDUHQRWDEOHWRLGHQWLI\HDVLO\WKHQHXURVLV
DQG VLPLODUO\ WKRVH WKLQJV VXFK DV VHOIHVWHHP ODFN RI
FRQILGHQFH SKRELD RU LQIHULRULW\ &RPOH[ FDQQRW EH LGHQWLILHV
HDVLO\6XFKWKLQJVDUHFRQVLGHUHGDVZKLPVRIKXPDQQDWXUHRU

28
WKH\ DUH EHLQJ LJQRUHG ZH GR QRW YHU\ PXFK DERXW VXFK
FKDUDFWHULVWLFVPHQWDOLOOQHVV7KHPDLQUHDVRQIRUVXFKDWWLWXGH
DERXWPHQWDOKHDOWKLVRXUZURQJFRQFHSWRIPHQWDOKHDOWK
 ,W LV GLIILFXOW WR NQRZ WKH FRQFHSW RI PHQWDOO\ LOO SHUVRQV
ZLWKRXWNQRZLQJWKHLPSDFWRIPHQWDOO\KHDOWK\SHUVRQ:HFDOO
DSHUVRQSK\VLFDOO\KHDOWK\LIGRHVKLVZRUNZLWKKDQGVOHJVDUH
WKHSK\VLFDORUJDQVZLWKRXWDQ\FRPSODLQDERXWSK\VLFDOSDLQRU
PLVHU\ SK\VLFDOLOOQHVV7KHSHUVRQDSSUDULQJWREHH[WHUQDOO\
KHDOWK\ LQWHUQDOO\ LOO :H ILQG UDUHO\ DQ\ SHUVRQ ZKR LV WRWDOO\
PHQWDOO\ KHDOWK\ EXW WKLV GRHV QRW PHDQ WKDW QR ERG\ LQ WKH
ZRUOGLVSRVVHVVLQJJRRGPHQWDOKHDOWK

 7RH[SODLQWKHFRQFHSWRIPHQWDOSUREOHP(ULFIURPPKDV
ZULWWHQ D ERRN QDPHG ZLVH VRFLHW\ $FFRUGLQJ KLV RSLQLRQ
PRGHUQPDQGRHVQRWNQRZKRZWREHKDYHZLWKKLPVHOIRUPRVW
SDVV WLPH PHDQLQJIXOO\ $V SHU WKH RSLQLRQ RI $ULVWRWOH PDQ·V
LPSRUWDQFHGRHVQRWGHSHQGXSRQKLVRZQHUVKLSRIODUJHDPRXQW
RISK\VLFDOWKLQJV5DYLQGUDQDWK7DJRUKDVVDLGWKDWHVWDEOLVKLQJ
RZQHUVKLS RQ WKLQJV LV WKH JUHDWHVW OLPLWDWLRQ RI KXPDQ EHLQJ
FRQVHTXHQWO\ PDQ·V PHQWDO KHDOWK LV GLVWXUEHG 7KHVH RSLQLRQV
DUH VLJQLILFDQW IRU PRGHUQ PDQ EHFDXVH PRGHUQ PDNHV PXFK
HIIRUWVIRUHVWDEOLVKLQJKLVRZQHUVKLSRQPDWHULDOZRUOG

+LVWRULFDOEDFNJURXQGRIPHQWDOKHDOWK
 ,Q DQFLHQW WLPHV WKHUH ZDV UDUHO\ KXPDQLWDULDQ DSSURDFK
WRZDUGV DEQRUPDO SHUVRQV 7KH FXUHG  LQ KXPDQ EHKDYLRXU
ZDV VKRZQ WR WKHP 7KH ILUVW SHUVRQ WR GUHZ DWWHQWLRQ WRZDUGV
WKLVWKLQJZDVWKHWHDFKHURI(QJODQG'RURWKLD'L[$VDUHVXOW
RI DWWHPSWV RI 'LU  PHQWDO KRVSLWDOV ZHUH HVWDEOLVKHU LQ
$PHULFD &DQDGD DQG %ULWLVK 7KH HIIRUWV 'L[ SURSDUHO D

29
EDFNJURXQGIRUWKRVHZKRWKRXJKWDERXWWKHSUREOHPRIPHQWDO
KHDOWK
 7KHPRYHPHQWRIPHQWDOKHDOWKEHJDQLQ$PHULFDLQ
,WV EHFDPH WKH YLFWLP RI PDQLF GHSUHVVLYH PHQWDO GLVRUOHU +H
ZDV NHSW LQ GLIIHUHQW PHQWDO KRVSLWDOV +H H[SHULPHQW WKH FUXHO
DQG LQ KXPDQ EHKDYLRXU RI RIILFHUV DQG ZRUNHUV RI PHQWDO
KRVSLWDOV $IWHU UHFRYHU\ KH ZURWK D ERRN ´$ PLQG WKDW IRXQG
KLPVHOIµ 7KLV ERRN GHVFULEHV KLV SHUVRQDO H[SHULHQFHV DV D
SDWLHQW LQ PHQWDO KRVSLWDOV 7KLV ERRN GUHZ WKH DWWHQWLRQ RI
SV\FKRORJLVWV DQG LQWHOOLFOXDOV RI $PHULFD :LOOLDP -DPHV DQG
$GROI 0D\HU VWDUWHG WKLFNLQJ DV WR ZKDW FDQ EH GRQH LQ WKLV
GLUHFWLRQ 7KHLU HIIRUWV UHVXOW LQWR WKH HVWDEOLVKPHQW RI DQ
LQVWLWXWLRQ RI PHQWDO KXJJHLQH ,Q  1DWLRQDO &RPPLWWHH RI
PHQWDO KHDOWK ZDV HVWDEOLVKHG 7KLV FRPPLWWHH VWXGLHV WKH
IDFLOLWLHV SURYLGH WR PHQWDOO\ LOO SHUVRQV ZLWK WKH HFRQRPLF KHOS
RI 5RFNIHOOHU IRXQGDWLRQ 7R JLYH IRUFH WR KLV WKRXJKWV %H\DUV
EHJDQ WKUHH PRQWK PDJD]LQH DERXQW PHQWDO K\JLHQH 7KHUHIRUH
WKHPRYHPHQWRIPHQWDOKHDOWKZDVVSUHDOLQWKHFRXQWULHVRWKHU
WKDQ $PHULFD $V D UHVXOW ,QWHUQDWLRQDO &RPPLWWHH IRU 0HQWDO
+\JHLQHµ ZDV HVWDEOLVKHUV LQ  %HVLGHV LQ $PHULFD 0HQWDO
KHDOWKKDZZDVSDVVHO
 ,QWKH:RUOG+HDOWKRUJDQL]DWLRQZDVHVWDEOLVKHGWKH
ILUVWFRQIHUHQFHRIWKLVRUJDQL]DWLRQWRRNSODFHLQ/RQGRQ$WWKH
LQWHUQDWLRQDO OHYHO ZKR 8QHVFR DQG VXFK RWKHU RUJDQL]DWLRQV
DUHZRUNLQJLQWKLVILHOG,Q86$PDQ\*RYWDJHQFLHV VRFLDO
DJHQFLHV DUH ZRUNLQJ LQ WKLV UHVSHFW 7KH\ DUH PDLQO\ RI WKUHH
W\SHV
 1DWLRQDO$VVRFLDWLRQIRU0HQWDO+HDOWK
 1DWLRQDO,QVWLWXWHIRU0HQWDO+HDOWK
 1DWLRQDO&RPPLWWHHDJDLQVWPHQWDOLOOQHVV

30
,Q ,QGLD ,QGLDQ ,QVWLWXWH RI SV\FKLDWU\ DQG PHQWDO KHDOWK
EHJDQ LQ  ,W LV WKH EHJLQQLQJ RI WKH PRYHPHQW RI PHQWDO
KHDOWK LQ ,QGLD ,Q D YHU\ VKRUW SHULRG WKH RWKHU LQVWLWXWLRQ
QDPHG,QGLDQFRXQVHOIRUPHQWDO+\JLHQHEHJDQ7KH\WRRNDZD\
WKHDGPLQLVWUDWLRQRI,QGLDQ,QVWLWXWLRQRISV\FKLDWU\DQGPHQWDO
KHDOWK7KLVLQVWLWXWLRQKDVSOD\HUVXEVWDQWLDOUROHLQWKLVILHOG
$FFRUGLQJ WKH UHSRUW RI ZKR LQ  WKH QXPEHU RI
PHQWDOO\ LOO SHUVRQV LQ ,QGLD ZDV  FURUH  ODFV 'XH WR
XUEDQL]DWLRQ RI WKUHH GHFDGHV WKLV QXPEHU LV GRXEOHG ,Q D
FRXQWU\OLNH86$ZLWKVFLHQWLILFDSSURDFKDQGPDWHULDOZHOIDUH
WKHUH LV QR VXIILFLHQW IDFLOLWLHV WRROV DQG H[SHUWV IRU WKH
WUHDWPHQW RI PHQWDOO\ LOO SHUVRQV LQ  WKHUH ZHUH 
SV\FKLDWULVWV DQG  FOLQLFDO SV\FKRORJLVWV ,Q FRPSDULVRQ
ZLWK WKH WRWDO SRSXODWLQJ 86$ DQG WKH QXPEHU RI PHQWDOO\ LOO
SHUVRQV WKLV QXPEHU LV YDU\ OHVV ,W LV TXLWH QDWXUDO WKDW WKHUH
DUH OHVV QXPEHU RI H[SHUWV  ODFN RI VXIILFLHQW IDFLOLWLHV IRU
PHQWDOO\,WSHUVRQLQDFRXQWU\OLNH,QGLDZKLFKLVHFRQRPLFDOO\
ZHHN ,Q WKLV FRQWH[W LW VKRXOG EH JLYHQ WRS SULRULW\ WR SUHYHQW
PHQWDO LOOQHVV DQG LPSURYH PHQWDO KHDOWK &RXQFLO IRU PHQWDO
+\JLHQHKDVDOVRFRQVLGHUHGWKLVPDWWHUDVYHU\LPSRUWDQW$VD
UHVXOWRIPRYHPHQWRIPHQWDOKHDOWKPDQ\VWXGLHVDERXWPHQWDO
KHDOWK EHJDQ 7KHVH VWXGLHV VWDUWHG LQ FRQWH[W ZLWK
DEQRUPDOLWLHV DQG PHQWDO KHDOWK 6RPH UHVHDUFKHUV VWXG\ WKH
SUREOHPV RI PHQWDO KHDOWK DULVLQJ RXW RI LQWHU SHUVRQDO
UHODWLRQVKLS :KLOH VRPH RWKHU VWXG\ WKH SUREOHPV RI PHQWDO
KHDOWK IURP WKH SRLQW YLHZ RI JURXS PRUDOH SURGXFWLYLW\ MRE
VDWLVIDFWLRQ HWF 7KXV YDULRXV VWXGLHV DUH FRQGXFWHG DERXW
PHQWDO KHDOWK DQG DV ZH JHW PRUH DQG PRUH LQIRUPDWLRQ DERXW
PHQWDOKHDOWKPRUH PRUHVWXGLHVDUHPDOH


31
'HILQLWLRQRIPHQWDOKHDOWK
 ´7KH VFLHQFH RI PDWHULDO KHDOWK LV VXFK D VFLHQFH
ZKLFKSUHYHQWVPHQWDOGLVRUGHUDQGILQGVUHPHGLHVRI
PHQWDOGLVRUGHUDQGDWWHPSWVIRUWKHGHYHORSPHQWRI
PHQWDOKHDOWKµ
$3$
 0HQWDO KHDOWK PHDQV WKH V\VWHPDWLF VWXG\ RI DOO WKH
IDFWRUV UHODWLQJ WR DGMXVWPHQW RI LQGLYLGXDO DQG
VRFLHW\ DQG WKH VWXG\ RI DGYDQWDJHRXV IDFWRUV RI
PHQWDOKHDOWKµ
&ODLQ  
 ´:KHQ WKH LQGLYLGXDO HVWDEOLVKHV DGMXVWPHQW ZLWK
HQYLURQPHQWKLVPHQWDOKHDOWKLVFDOOHGVXSHULRUµ
0DU\-DKGD  
 ´0HQWDO KHDOWK PHDQV WKH GHYHORSPHQW RI VSHFLILF
EHKDYLRXU IURP WKH LQGLYLGXDO DQG VRFLDO SRLQW RI
YLHZZKLFKJLYHVKLPWKHKLJKHVWDELOLWLHVWRSUHYHQW
PHQWDOLOOQHVVµ
+DGOH\  
´,Q WKH RUGLQDU\ ODQJXDJH PHQWDO KHDOWK LV LQWHJUDWHU 
KDUPRQLRXVEHKDYLRXURILQGLYLGXDOµ +HGILHOG
´0HQWDO KHDOWK LV D FRPSHWHQO\ WR DGMXVW VXIILFLHQWO\ ZLWK
HQYLURQPHQWRQWKHEDVLVRIUHDOLVWLFUROH /HGHO
´0HQWDOKHDOWKPHDQVWKHFRPSHWHQF\WRPDLQWDLQEDODQFH
LQ VHQWLPHQWV GHVLUHV DPELWLRQV DQG LGHDOV DQG WKH DELOLW\ WR
DFFHSW IDFHUHDOLW\µ %.XSSXVZDP\  
´0HQWDOKHDOWKLQGLFDWHVKDSS\DQGDVVHUWLYHOLIHµ(OOLV
´0HQWDO KHDOWK EH GHILQHG DV WKH DGMXVWPHQW RI KXPDQ
EHLQJV WR WKH ZRUOG DQG WR RQH DQRWKHU ZLWK D PD[LPXP RI
HIIHFWLYHQHVVDQGKDSSLQHVVµ    $UO0HQQLJHU 

32
´0HQWDO KHDOWK LV SUHYHQWLRQ RI PHQWDO GHFHDVHV DQG LWV
UHPHGLHVDQGDSURFHVVRIDSSO\LQJLWµ  'HVDL
´0HQWDO KHDOWK PHDQV LQGLYLGXDOV VXFK DQ DGMXVWPHQW
ZKLFKJLYHVKLPPD[LPXPVDWLVIDFWLRQµ 0DVVDORZ  

´0HQWDOKHDOWKPHDQVIUHHGRPIURPGLVDELOLW\ GLVWXUELQJ
V\PSWRPV WKDW LQWHUIHUH ZLWK PHQWDO HIILFLHQFLHV HPRWLRQDO
VWDELOLW\RUSHDFHRIPLQGµ

7KH LPSRUWDQW WKLQJ DERXW PHQWDO KHDOWK DFFRUGLQJ WR
0DVVDORZ
 7KHVHQVHRIVHFXULW\
 6XIILFLHQF\
 6XIILFLHQWHPRWLRQDOLW\
 6XIILFLHQW HIILFLHQWVDWLVIDFWLRQZLWKUHDOLW\
 7KH QDWXUDO SOHDVXUH RI VDWLVIDFWLRQ RI SK\VLFDO QHHGV
DQGWKHDELOLW\WRWROHUDWHLWVGHSULYDWLRQ
 7KH VXIILFLHQW NQRZOHGJH RI VHOI RQH·V GHVLUHV JRDOV
H[SHFWDWLRQV OLPLWDWLRQDQGDELOLWLHV
 &RQVLVWHQF\ RUJDQL]DWLRQ
 6XIILFLHQWJRDOV
 &RPSHWHQF\WROHDUQIURPH[SHULHQFHV
 &RPSHWHQF\WRVDWLVI\QHHGV
 7R EH FUHDWLYH EHFRPLQJ IUHH IURP JURXS UHPDLQLQJ
DZD\ IURP IODWWHU\ DQG DELOLW\ WR WROHUDWH FXOWXUDO
GLIIHUHQFHV

 &RQFHSWVRINXSSXVZRP\DERXWPHQWDOKHDOWK
 7KHFRQFHSWVRI6DQOHVV  DERXWPHQWDOKHDOWKDUHDV
XQGHU

33

D  &RQWURORIWKRXJKDQGGHHG
7KHUH PXVW EH FRQWURO RI ZKDW DQ LQGLYLGXDO WKLQNV
,PSURSHURUEDVHOHVVWKRXJKWVDUHWKHVLJQVRIZHHNPHQWDO
KHDOWK 6RPH WKRXJK RFFXUULQJ UHSHDWHGO\ LV FDOOHG
GHOXVLRQ 'LVDSSRLQWPHQW PHDQLQJOHVVQHVV DQG WKRXJKWV
RINLOOLQJVRPHERG\DUHQRWSURSHUIURPWKHSRLQWRIYLHZRI
PHQWDOKHDOWK0DQ\SHUVRQVGRLPSURSHUDQGPHDQLQJOHVV
EHKDYLRXU (J GHSWRPDQLD LQ ZKLFK WKH LQGLYLGXDO VWHDOV
ZLWKRXW YHU\ UHDVRQ 7KH EHKDYLRXU ZKLFK LV PHDQLQJOHVV
6XFK EHKDYLRXU LV DXWRPDWLF ,W LV EHFRPHV ZHHN LW LV D
VLJQRIEDGPHQWDOKHDOWK
E  0RWLYDWLRQDOFRQWURODQGUHVXOWV
7KHUH DUH VRPH EDVLF QHHGV LI LQGLYLGXDOV ZKLFK
FDQQRW EH QHJDWHG 6RFLHW\ GRHV QRW DFFHSW FHUWDLQ EDVLF
QHHGV ,W FDQQRW EH GLUHFWO\ VDWLVILHG IURP VRFLDO SRLQW RI
YLHZ VH[XDO DFWLYLWLHV DQJHU GLVWXVW HWF DUH QHJDWLYH
QHHGV 7KH LQGLYLGXDO JHQHUDOO\ GHQLHV WKHVH QHHGV :KLOH
LQ SRVLWLYH QHHGV ZH ILQG ORYH DIIHFWLRQ FRRSHUDWLRQ HWF
6XFK QHHGV FDQQRW EH GLUHFWO\ VDWLVILHG EXW WKH\ DUH WREH
VDWLVILHG ZLWKLQ WKH UHVWUDLWV RI VRFLHW\ 7KHVH QHHGV DUH
VDWLVILHG SURSHUO\ LQ PHQWDOO\ KHDOWK\ SHUVRQ ZKLOH WKH
SHUVRQ ZLWK ZHHN PHQWDO KHDOWK FUHDWHV LPEDODQFH LQ WKH
VDWLVIDFWLRQ RI QHHGV ,W LV SRVVLEOH WKDW HYHU\ WLPH QHHGV
DUHQRWVDWLVILHG+HIHHOVGLVDSSRLQWHGZKHQQXRVDUHQRW
VDWLVILHG 7KH LQGLYLGXDO PXVW KDYH WKH DELOLW\ WR WROHUDWH
WKH GLVDSSRLQWPHQW ,Q WKH PHQWDO KHDOWK\ SHUVRQV WKH
GHJUHH RI GLVDSSRLQWPHQW LV OHVV 7KH PHQWDOO\ KHDOWK\
SHUVRQ VDWLVILHV KLV QHHGV ZLWKLQ WKH OLPLWV RI WLPH DQG
SODFH

34
F  3RVLWLYHDSSURDFKWRSUHVHQW
+DYLQJ SRVLWLYH WUDLWV LQ LQGLYLGXDO LV DQ LPSRUWDQW
DSSURDFK WR PHQWDO KHDOWK 7KHVH SRVLWLYH WUDLWV LQFOXGH
ORYH DIIHFWLRQ PHUFHU SLW\ FXULRVLW\ PL[LQJ QDWXUH HWF
7KHPRUHWKLVW\SHRIWUDLWVLQGLFDWHWKHVLJQRIJRRGPHQWDO
KHDOWK :KLOH GLVJXVW VHOILVKQHVV MHDORXV\ DEVHQFH RI
IHHOLQJVHWFDUHQHJDWLYHWUDLWVZKLFKGLVWXUEPHQWDOKHDOWK
G  +HDOWK\VHOIFRQFHSW
7KHVHOIFRQFHSWVRILQGLYLGXDOPXVWEHKHDOWK\FOHDU
DQG UHDOLVWLF ,QGLYLGXDO PXVW KDYH SURSHU DVVHVVPHQW
RQHVHOI DUH KH PXVW NQRZ ZKDW KH WKLQNV DERXW KLPVHOI
7KH LQGLYLGXDO PXVW KDYH SURSHU FRQFHSWV KLV DELOLW\ DQG
OLPLWDWLRQV7KHQHJDWLYHDQGXQUHDOLVWLFFRQFHSWVRIVHOILV
DVLJQRIZHHNPHQWDOKHDOWK

)DFWRUVLQIOXHQFLQJJRRGPHQWDOKHDOWK
 )ROORZLQJIRXUIDFWRUVDIIHFWVPHQWDOKHDOWK
  +HUHGLWRU\ IDFWRUV   3K\VLFDO IDFWRUV   6RFLDO IDFWRUV
 6DWLVIDFWLRQRIEDVLFQHHGV
  +HUHGLWRU\IDFWRUV
+HUHGLW\ GHWHUPLQHV WKH OLPLWV RI LQGLYLGXDOV PHQWDO
DELOLWLHV+RZIDULQGLYLGXDOZRXOGDFKLHYHWKURXJKPHQWDO
KHDOWK GHSHQGV XSRQ KLV SHUVRQDO OLPLWV ,QGLYLGXDOV
DSSHDUDQFH LQWHOOLJHQFH SK\VLTXH DQG RWKHU PHQWDO
DELOLWLHV DUH WKURXJK KHUHGLW\ ,I WKH LQGLYLGXDO KDV OHVV
WROHUDQFH DELOLW\ WKH PHQWDO LOOQHVV GHYHORSV UDSLGO\ 6RPH
SHRSOH DUH SX]]OHG E\ VPDOO SUREOHPV RU GLIILFXOWLHV EXW
VRPH RWKHUV ODXJK DW VXFK VPDOO SUREOHPV $FFRUGLQJ WR
WKHRSLQLRQRIZDOOHQWKHGHIHFWLYHKHUHGLW\SOD\VEDVLFUROH
LQWKHGHYHORSPHQWRIPHQWDOGHFUHDVHV

35
  3K\VLFDOIDFWRUV
,QGLYLGXDO·V SK\VLFDO KHDOWK LV DQ LPSRUWDQW IDFWRU RI
PHQWDO KHDOWK ,QGLYLGXDO OLNHV WR OLYH OLIH GXH WR SK\VLFDO
KHDOWK +H KDV GHVLUHV WR DFKLHYH VRPHWKLQJ ZKHQ KH LV
SK\VLFDOO\ KHDOWK\ +H OHDGV KDSS\ OLIH 7KRVH ZKR KDYH
PRUH DELOLWLHV ORRN SK\VLFDOO\ JRRG 7KRVH ZKR DUH
SK\VLFDOO\ VLFN KDYH PHQWDO WUDLWV OLNH H[FLWHPHQW
GLVDSSRLQWPHQWZRUU\HWFDQGLQWKLVZD\PHQWDOKHDOWKLV
DOVRGLVWXUEHGZKHQSK\VLFDOKHDOWKLVQRWZHOO
  6RFLDOIDFWRUV
,QGLYLGXDO OLYHV LQ VRFLHW\ DQG KH HVWDEOLVKHV LQWHU
SHUVRQDO UHODWLRQV WKURXJK LQWHUDFWLRQ ZLWK RWKHU SHUVRQV
LQ VRFLHW\ 6RFLDO HQYLURQPHQW VKDSHV LQGLYLGXDO·V
NQRZOHGJH LQWHUHVW KDELWV DQG YDOXHV 7KH LQGLYLGXDOV
EHKDYLRXU LV DIIHFWHU E\ VRFLHW\ 7KH PDLQ RUJDQV RI WKH
VRFLHW\ DUH IDPLO\ VFKRRO FRPPXQLW\ EXVLQHVV HWF 7KH
EDVLF WKLQJ LQ PHQWDO KHDOWK LV IDPLO\ HJ 0RWKHU·V
PRWLYDWLRQDIIHFWLRQVHFXULW\DQGDFFHSWDQFHKHOSWKHFKLOG
LQPDNLQJSURJUHVV7KHVHWKLQJVKHOSWKHGHYHORSPHQWRID
FKLOG%XWLIWKHPRWKHULVSHVVLPLVWKDYLQJPHQWDOVWUHVV
XQDEOH WR LPSDUW ORYH WR D FKLOO WKH FKLOG·V PHQWDO
GHYHORSPHQW DIIHFWV DGYHUVHO\ DQG DV D UHVXOW PHQWDO
KHDOWK GRHV QRW GHYHORS SURSHUO\ %RWK PRWKHU DQG IDWKHU
KHOSWKHGHYHORSPHQWRIPHQWDOKHDOWK,IWKH\SOD\ZLWKWKH
FKLOG  MRLQ WKH HQWHUWDLQPHQW  RWKHU SURJUDPV WKH
SRVLWLYH DWWLWXGHV RI PHQWDO KHDOWK GHYHORS LQ FKLOG 6RPH
EURNHQ KRPHV DQG LQVWDEOH KRPHV FUHDWH PDQ\ SUREOHPV
RI DGMXVWPHQW ZDUP UHODWLRQV EHWZHHQ SDUHQWV DQG
HQFRXUDJLQJ DWPRVSKHUH LQ WKH KRXVH FUHDWH VHQVH RI

36
SOHDVXUH LQ D FKLOG FXUG LW LQIOXHQFHV IDYRXUDEO\ LQ WKH
GHYHORSPHQWRIPHQWDOKHDOWK
  6DWLVIDFWLRQRIEDVLFQHHGV
,Q WKH IRXQGDWLRQ RI PHQWDO KHDOWK OLHV WKH
VDWLVIDFWLRQRIEDVLFQHHGV,WLVLPSRUWDQWKRZLQGLYLGXDO·V
EDVLF QHHGV DUH VDWLVILHG DQG LQ ZKDW SURSRUWLRQ LW LV
VDWLVILHG 7KH H[SHUWV RI PHQWDO KHDOWK VD\ WKDW LW LV
H[WUHPHO\ HVVHQWLDO WKDW WKH LQGLYLGXDOV EDVLF QHHGV DUH
VDWLVILHGLQIDFWLWLVQRWHQRXJKWKDWPDQ·VQHHGVLIEUHDN
VKHOWHU FORWKHUDUHVDWLVILHGEXWLWLVPRUHLPSRUWDQWWKDW
PDQ·VSV\FKRORJLFDOQHHGVDUHDOVRVDWLVILHV

2WKHUIDFWRUVLQIOXHQFLQJPHQWDOKHDOWK
 2WKHU IDFWRUV LQIOXHQFLQJ PHQWDO KHDOWK DUH SV\FKRORJLFDO
VRFLDODQGLQGLYLGXDOIDFWRUV
3V\FKRORJLFDOIDFWRUV
0DU\ -DKLOD KDV VWDWXV IROORZLQJ SV\FKRWLFDOO\ IDFWRUV
DIIHFWLQJPHQWDOKHDOWK
D  ,QWHJUDWLRQRISHUVRQDOLW\
,QGLYLGXDO·VSHUVRQDOLW\ LVPDGHXSRIPDQ\WUDLWV,W
WKHVHWUDLWVDUHLQWHJUDWHDQGWKHLQGLYLGXDODFWVDVDZKLOH
XQLW LW LV WKH VLJQ RI WKH EHVW PHQWDO KHDOWK $FFRUGLQJ WR
WKH RSLQLRQ RI DOOSRUW E\ VXFK LQWHJUDWLRQ RI SHUVRQDOLW\
WUDLWV WKH GHILQLWH LGHRORJ\ LV IRUPHU DW D PDWXUH DJH 7KH
KHLJKW RI VXFK LGHRORJ\ LQGLFDWHV WKH VXSHULRULW\ RI PHQWDO
KHDOWK
E  6HOIDFWXDOL]DWLRQ
:KHQPRVWRIWKHJHQHUDOQHHGVRIWKHLQGLYLGXDODUH
VDWLVILHG KH IHHOV WKH QHHG RI VHOIDFWXDOL]DWLRQ ,W WKH

37
LQGLYLGXDO GRHV QRW DWWHPSWV WR DFKLHYH VHOIDFWXDOL]DWLRQ
KLVPHQWDOKHDOWKLVFRQVLGHUHGZHHN
F  $XWRQRP\RILQGLYLGXDO
,QGLYLGXDO FDQ EH VDLG PHQWDOO\ KHDOWK\ ,I KH LV VHOI
VXIILFLHQWFDQWDNHLQGHSHQGHQWGHFLVLRQDQGFDQVROYHWKH
SUREOHPV UHODWH ZLWK VRFLDO HQYLURQPHQW ,W LV D VLJQ RI
PHQWDO LOO KHDOWK LI D SHUVRQ IUHTXHQWO\ VHHNV WKH DYLFH RI
RWKHUIRUVPDOOPDWWHUV
G  $WWLWXGHVWRZDUGVRQHVHOI
7KHSHUVRQZKRKDVKHDOWK\DWWLWXGHWRZDUGVKLPVHOI
FRQVFLRXVRIKLVDELOLWLHVDQGOLPLWDWLRQV KDVWKHDWWLWXGH
RI DFFHSWLQJ UHDOLW\ KDV WKH EHVW PHQWDO KHDOWK 6XFK
SHUVRQ KDYH VHOIHVWHHP DQG VHOIFRQILGHQFH 6R KH NHHSV
DPELWLRQV DFFRUGLQJ WR KLV FRPSHWHQF\ 6XFK SHUVRQ KDV
OHDVW FKDQFH RI IDLOXUH DQG VR KH JHWV QHFHVVDU\
SV\FKRORJLFDOVDWLVIDFWLRQ
H  7KHWHFKQLTXHRISHUFHLYLQJUHDOLW\
&RUUHFW SHUFHSWLRQ RI VLWXDWLRQ LV DQ LPSRUWDQW
IDFWRUVRIPHQWDOKHDOWK7KHSHUFHSWLRQZKLFKLVIUHHIURP
RQH·VQHHGVSURMXGLOHV DWWLWXGHVLVFRUUHFWSHUFHSWLRQ,Q
LW WKH LQGLYLGXDO LV DEOH WR GLVFULPLQDWH EHWZHHQ KLV
H[SHFWDWLRQDQGUHDOLW\
I  0DVWHU\RYHUHQYLURQPHQW FHQWUH
,W LV QHFHVVDU\ IRU PHQWDO KHDOWK WR DFTXLUH PDVWHU\
RYHUVRFLDODQGQDWXUDOHQYLURQPHQW,WLQFOXGHVWKHDELOLW\
WR JLYH DQG WDNH ORYH DUH FRPSHWHQF\LQ JDPHV  GHHGV
HIILFLHQF\ LQ VROYLQJ SUREOHPV VXIILFLHQF\ LQ LQWHUSHUVRQDO
UHODWLRQVKLSDQGWKHVNLOOWRDGMXVWZLWKHQYLURQPHQW

38
 6RFLDOIDFWRUV
9DULRXV UHVHDUFKHUV KDYH PHQWLRQHG IROORZLQJ VRFLDO
IDFWRUVIRUPHQWDOKHDOWK
D  )DPLO\OLIH
$FFRUGLQJ WR WKH RSLQLRQ RI FROHPDQ WKH SOHDVDQW
IDPLO\ OLIH RSHQV WKH GRRU IRU VWDEOH VRFLDO UHODWLRQV ,W
UHPRYHV WKH IHHOLQJV RI LVRODWLRQ 9DULRXV QHHGV RI
LQGLYLGXDODUHVDWLVILHGLQIDPLO\OLIH,IPRVWRIVXFKQHHGV
DUH VDWLVILHG WKH LQGLYLGXDO FDQ PDLQWDLQ PHQWDO KHDOWK
DQGFDQREWDLQWKHVROXWLRQVRISUREOHPVRIOLIH
E  5HYHQJHIXODWWLWXGHWRZDUGVVLEOLQJV
7KHUH VKRXOG EH QRUHYHQJH EHWZHHQ VLEOLQJV *RRG
DGMXVWHG UHODWLRQV PXWXDO FRRSHUDWLRQ DIIHFWLRQ DQG
LQWLPDF\HWFDUHWKHIDFWRUVWKDWKHOSGHYHORSPHQWRIJRRG
PHQWDOKHDOWK,IWKHSDUHQWVFRPSDUHWKHDELOLWLHVRIWKHLU
VRQV  GDXJKWHUV RU LQVXOW VRPH  DSSUHFLDWH WKH RWKHUV
WKHPHQWDOKHDOWKLVGLVWXUEHG
F  +HDOWK\VRFLDOUHODWLRQV
,W LV QHFHVVDU\ WR PDLQWDLQ PHQWDO KHDOWK LI WKH
LQGLYLGXDO LV DEOH WR HVWDEOLVK KHDOWK\ DGMXVWHG UHODWLRQV
ZLWK RWKHUV GXULQJ WKHLU LQWHUDFWLRQ 7KH SHUVRQ ZKR KDV
WKH DELOLW\ WR SHUFHLYH JRRG DQG EDG DVSHFWV LQ D UHDOLVWLF
PDQQHUZKDWW\SHRIEHKDYLRXUWREHH[SHFWHGIURPRWKHUV
DQGKRZWREHKDYHZLWKRWKHUVLVPHQWDOO\KHDOWK\

G  3URSHUSURIHVVLRQDODWPRVSKHUH
,I WKH LQGLYLGXDO JHWV SURIHVVLRQ DFFRUGLQJ WR KLV
LQWHOOLJHQFHDQGTXDOLILFDWLRQKHFDQDFTXLUHSV\FKRORJLFDO
VDWLVIDFWLRQ ,QGLYLGXDO LV EURNHQ LI WKH GRHV QRW KDYH WKH
DELOLW\ WR H[KLELW KLV DELOLW\ RU LI KH KRVW ZRUN EH\RQJ KLV

39
DELOLW\ %HVLGHV WKLV HQYLURQPHQW RI LQGXVWULDO LQVWLWXWLRQ
DWWLWXGHV RI DGPLQLVWUDWRUV UHODWLRQV ZLWK FROOHDJXHV
HQYLURQPHQW RI ZRUN VLWXDWLRQ DQG WKH QDWXUH RI ZRUN HWF
DIIHFWPHQWDOKHDOWK
 3HUVRQDOLW\IDFWRUV
0DQ\ SV\FKRORJLVWV EHOLHYH WKDW KHUHGLW\ SK\VLFDO
KHDOWKOHYHORILQWHOOLJHQFHHWFDUHSHUVRQDOIDFWRUVDIIHFWLQJ
PHQWDO KHDOWK HJ WKH GLIIHFWLYH KHYHGLW SURYLGHV
HQYLURQPHQW IRU PHWQDO DQG SK\VLFDO GHFHDVHV ,W FUHDWHV
GLVKDUPRQ\LVWKHSHUVRQDOLW\7KHSHUVRQZKRLVFRQVWDQW
LI IRU D ORQJ WLPH FDQQRW PDLQWDLQ PHQWDO KHDOWK ,W LV
HYLGHQW WKDW WKH SHUVRQV ZLWK KRZ LQWHOOLJHQFH KDV PHQWDO
KHDOWKRIORZHUGHJUHH
,Q DGGLWLRQ WR WKLV WKHUH DUH PDQ\ RWKHU IDFWRUV LQ
IOXHQFLQJ PHWQDO KHDOWK ,W LV LPSRVVLEOH WR GLVFXVV DOO
WKHVHIDFWRUV,WLVLQYHWDEOHWRDGMXVWLQYDULRXVILHOGVDQG
LW DOVR DIIHFWV HIIHFWLYHQHVV RI OHDUQLQJ 6R ZH PXVW
XQGHUVWDQGWKHLPSRUWDQFHRIPHQWDOKHDOWK

7KHFKDUDFWHULVWLFVRIPHQWDOO\KHDOWK\SHUVRQ
 ,W LV GLIILFXOW WR GHILQH PHQWDOO\ KHDOWK\ SHUVRQ $FFRUGLQJ
WR VPLWK PHQWDO KHDOWK VXJJHVWV GLIIHUHQW WUDLW RI LQGLYLGXDOV
SHUVRQDOLW\,WLVQRWSRVVLEOHWKDWWKHVDPHLQGLYLGXDOPD\KDYH
DOO WKH WUDLWV RI SHUVRQDOLW\ 6WLOO KRZHYHU YDULRXV WUDLWV KDYH
KHLJKW FRUUHODWLRQ :KLFK FKDUDFWHULVWLF LV PXVW EH WKHUH LQ
PHQWDOO\ KHDOWK\ SHUVRQ " RU ZKDW DUH WKH QRUPV RI PHQWDO
KHDOWK"SV\FKRORJLVWVKDYHVKRZQWKHIROORZLQJFULWHULDIRUJRRG
PHQWDOKHDOWK
 *RRGSK\VLFDOKHDOWK
 6DWLVIDFWRU\VRFLDOUHODWLRQV

40
 ,QGLYLGXDOLPSRUWDQFHRUVHOIHVWHHP
 ,QVLJKW
 3KLORVRSK\RIOLIH
 *RRGSK\VLFDOKHDOWK
$VRXQGPLQGFDQH[LVWLQVRXQGERG\+HDOWK\PLQG
FDQ UHVLGH LQ KHDOWK\ ERG\ ,W FODULILHV WKDW PHQWDO KHDOWK
DQG SK\VLFDO KHDOWK\ DUH PXWXDOO\ UHODWHG *RRG SK\VLFDO
KHDOWK LV DEVROXWHO\ HVVHQWLDO IRU JRRG PHQWDO KHDOWK\ 2Q
DFFRXQW RI JRRG SK\VLFDO KHDOWK WKH LQGLYLGXDO FDQ HDVLO\
DGMXVWZLWKGLIIHUHQWVLWXDWLRQV
7KH PDLQWHQDQFH RI SK\VLFDO KHDOWK GHSHQGV XSRQ
LQGLYLGXDO IRU KLV SXUSRVH WZR WKLQJV DUH QHFHVVDU\
VXIILFLHQW QXWULHQW IRRG  SURSHU H[HUFLVH 7KH W\SH RI
EDODQFHG GLHW DQG WKH W\SH RI H[HUFLVH QHFHVVDU\ IRU
PDLQWDWLQLQJ SK\VLFDO PXVW EH GHWHUPLQHV E\ LQGLYLGXDO
KLPVHOI+HVKRXOGIRUPWKHKDELWLQWKLVUHJDUG
 6DWLVIDFWRU\VRFLDOUHODWLRQV
0DQ LV D VRFLDO DQLPDO 7KH VDWLVIDFWLRQ RI PDQ\
QHHGV GHSHQG XSRQ VRFLDO UHODWLRQV 0DNLQJ RWKHUV DV RXU
RZQPL[LQJZLWKRWKHUVDIIHFWLRQDWHO\SDUWLFLSDWHLQRWKHUV
KDSSLQHVV  PLVWHU\ PDNLQJ RWKHUV DUWLFLSDQW LQ RXU
KDSSLQHVV  PLVHULHV HWF GHWHUPLQH RXU VRFLDELOLW\ 7KH
SHUVRQ KDYLQJ VDWLVIDFWRU\ VRFLDO UHODWLRQV KDYH IULHQGO\
UHODWLRQV ZLWK RWKHUV DQG H[SHULHQFH LQWLPDF\ ZLWK RWKHUV
WKH SHUVRQ ZKR KDV QR VRFLDO UHODWLRQ ZLWK RWKHUV LV
LVRODWHG 6XFK SHUVRQ KDV DUWLILFLDO VRFLDO UHODWLRQ DQG KLV
PHQWDO KHDOWK\ LV ZHHN 6RPH SHRSOH NHHS DUWLILFLDO VRFLDO
UHODWLRQ IRU WKHLU VHOILVK PRWLYHV  ZLWK VRPHH[SHFWDWLRQV
IURPRWKHUVRUWRH[SORLWRWKHUV7KHPHQWDOKHDOWKRIVXFK
SHRSOHLVZHHN

41
6WUDQJH FRQVLGHUV WZR WKLQJV LPSRUWDQW IRU VRFLDO
UHODWLRQV   %DODQFHG VRFLDO DFWLYLWLHV (YHU\ LQGLYLGXDO
VKRXOG KDYH RQH LQWLPDWH IULHQG +H FDQ H[SUHVV KLV
KDSSLQHVVDQGPLVHULHVZLWKVXFKIULHQGRSHQLQJKLKHDUW
ZLWKRXW DQ\ ZRUU\ ,QVWHDG RI KDYLQJ JHQHUDO VRFLDO
UHODWLRQV RQH VKRXOG KDYH LQWLPDWH  GHHS GHHS UHODWLRQV
ZLWK RQH SHUVRQ 7KLV LV PRUH XVHIXO IRU PDLQWDLQLQJ JRRG
PHQWDO KHDOWK :H H[SHULHQFH LVRODWLRQ LQ FURZGLQJ
6LPLODUO\ WKH SHUVRQ KDYLQJ VRFLDO UHODWLRQV ZLWK PDQ\
SHUVRQVH[SHULHQFHVLVRODWLRQDQGLQVHFXULW\LQWKHDEVHQFH
RI LQWLPDWH IULHQGVKLS 7KH GHHS IULHQGO\ UHODWLRQV RI
FKLOGKRRGDUHVRPHWLPHVXVHIXOLQHOGHUO\DJH'HSHQGDEOH
DQGLQWLPDWHIULHQGLVPRUHXVHIXOWKDQSV\FKLDWULVWVZKHQ
DSHUVRQLVPHQWDOO\GLVWXUEHG
3DUWLFLSDWLRQ LQ VRFLDO DFWLYLWLHV LV HTXDOO\ LPSRUWDQW
LQPDLQWDLQLQJPHQWDOKHDOWK,WLVQRWSURSHUWRWDNHSDUW
LQ VRFLDO DFWLYLWLHV DW WKH FRVW RI SHUVRQDO  IDPLO\
UHVSRQVLELOLWLHV
 ,QGLYLGXDOLPSRUWDQFHRUVHOIHVWHHP
7KH PRVW LPSRUWDQW WKLQJ IRU PHQWDO KHDOWK LV
FXOWLYDWLQJ UHVSHFW WRZDUGV RQHVHOI 7KH SHUVRQ ZLWK VHOI
HVWHHP  VHOI FRQILGHQFH FDQ GR DQ\ ZRUN ZLWKRXW IHDU RU
GLVDSSRLQWPHQW7KHSHUVRQKDYLQJ LQIHULRULW\ FRPSRVHIRU
KLPVHOILVEURNHQGRZQLQYHU\FRPPRQSUREOHP7R PHHW
ZLWKWKHFKDOOHQJHVRIOLIHVHOIHVWHHPLVYHU\HVVHQWLDOOLIH
VKRXOG EH OLYHG ZLWK VHOIUHVSHFW VWUHQJWK DQG ILUP
GHWHUPLQDWLRQ'HSHQGDELOLW\ KHOSOHVVQHVVDUHQRWZRUWK
ZLOHLQOLIH

42
 ,QVLJKW
7KH VNLOO WR XQGHUVWDQG RQH·V RZQ EHKDYLRXU LV
NQRZQ DV LQVLJKW ZH PXVW DWWHPSW WR XQGHUVWDQG RXU
EHKDYLRXU QHXWUDOO\ ,W LV YHU\ GLIILFXOW WR HVWLPDWH RXU
EHKDYLRXU REMHFWLYHO\ RU QHXWUDOO\ 0DQ\ WLPHV ZH EHKDYH
E\ MHDORXV\ HQRUPLW\ GLVJXLVH UHYHQJH RU VXFK RWKHU
QHJDWLYHHPRWLRQV:HGRQRWDFFHSWVXFKEHKDYLRXU%XWLW
ZHDQDO\VHRXUVXFKEHKDYLRXUQHXWUDOO\ZHFDQFXOWLYDWH
WKH LQVLJKW WR XQGHUVWDQG RXU EHKDYLRXU 7KH SHUVRQ
KDYLQJJRRGPHQWDOKHDOWKSRVVHVVHVVXFKLQVLJKW
 3KLORVRSK\RIOLIH
7KH DSSURDFK WRZDUGV OLIH LV XQGHUVWDQGLQJ ZKDW LV
LPSRUWDQW DQG QRW LPSRUWDQW ZKDW LV QHFHVVDU\ 
XQQHFHVVDU\ :KDW LV UHDVRQDEOH  XQGHUHDVRQDEOH 
ZKDWLVULJKW ZURQJ6XFKYLHZSRLQWLVFDOOHGSKLORVRSK\
RI OLIH 7KH PHFKDQLVP RI SHUVRQDO YDOXHV RI OLIH LV FDOOHG
SKLORVRSK\RIOLIH,QWKLVZD\HYHU\LQGLYLGXDOGHYHORSVKLV
RZQ SKLORVRSK\ RI OLIH 7KH SKLORVRSK\ RI LQGLYLGXDO·V OLIH
GHWHUPLQHV KLV OLIH VW\OH 3DWWHUQ RI EHKDYLRXU DQG KLV
SULRULWLHV LQ OLIH VRPH SHRSOH DUH YHU\ UHOLJLRXV 6RPH DUH
LGHRORJLVWV DQG VRPH JLYH WRS SULRULW\ WR DFTXLUH PDWHULDO
ZHDOWK6RPHSHRSOHSD\PRUHDWWHQWLRQWRPDWHULDOZHOIDUH
LQOLIH7KLVLVWKHUHVXOWRISKLORVRSK\RIOLIH3KLORVRSK\RI
OLIH DIIHFWV PHQWDO KHDOWK 7KH LQGLYLGXDO EHOLHYLQJ LQ *RG
UHOLJLRQ  IDWH LV FDSDEOH RI IDFLQJ DQ\ GLIILFXOW VLWQDWLRQ
LQGLYLGXDO WROHUDWHV WKH VLWXDWLRQ RI GHSULYDWLRQ RQ WKH
EDVLV RI EHOLHI LQ IDWH $FFRUGLQJ WR DOO SRUW UHOLJLRQ LV
GLVFRYHU\RIYDOXHVXQGHUO\LQJLQWKHRULJLQRIWKLQJV,QDOO
SRVVLEOHSKLORVRSKLHVRIOLIHUHOLJLRQLVFRPSUHKHQVLYH

43
3KLORVRSK\RIOLIHVRFLDOVHQWLPHQWVDQGDIIHFWLRQDUH
YHU\ HVVHQWLDO IRU PHQWDO KHDOWK ,Q RXU FLYLOL]DWLRQ WKH
SKLORVRSK\RIOLIHOLHVLQWKUHHSULQFLSOHV
 ,QGLYLGXDOVKRXOGOLYHZLWKDFWLYHVRXQGSDUWLFLSDWLRQ
DQGVRFLDOUHVSRQVLELOLW\
 /LIH LV ZRUWK OLYLQJ DQG WKH PHDQLQJ RI OLIH FDQ EH
XQGHUVWRRG IURP WKH YLHZ SRLQW RI UHOLJLRQ DQG
KXPDQLW\
 (YHU\ LQGLYLGXDO LV DQ RUJDQ RI RWKHUV DQG KH LV WKH
RUJDQ RI VRFLHW\ $FFRUGLQJ WR WKH RSLQLRQ RI (ULF
)URP HYHU\ SHUVRQ LV EURWKHU RI HDFK RWKHU DQG LV
FDSDEOH RI ORYLQJ RWKHUV RU KH VKRXOG FXOWLYDWH WKH
VHQVHRIEURWKHUKRRG

7KHWKLQJVGLVWXUELQJPHQWDOKHDOWK
 3K\VLFDOLOOKHDOWK
3K\VLFDO LOO KHDOWK FDQ SURGXFH PHQWDO LOOQHVV 2OG
LQGLJHVWDWLRQ FRQVWDQW KHDGDFKH ORQJ LOOQHVV RU
LQFDSDFLW\ $V D UHVXOW KH EHFRPHV XQKDSS\ UHVWOHVV
IUXVWUDWHV
 (PRWLRQDOLW\
%ORRPLQJ IHDWXUH LQ JHQHUDO DYHUVH FLUFXPVWDQFHV
EHFRPLQJDQJU\RUSUHVVXUL]HVZLWKVKDPHHWFGLVWXUEWKH
PHQWDOKHDOWK7KHVWXGHQWDIUDLGRIH[DPLQDWLRQEHFRPHV
DQ[LRXV:KHQWKHFKLOGGRHVQRWREH\JHQHUDOVXJJHVWLRQV
RISDUHQWVWKH\EHFRPHYHU\DQJU\$OOVXFKWKLQJVGLVWXUE
WKHPHQWDOKHDOWK

44
 6HOI NQRZOHGJH WKH NQRZOHGJH RI SUREOHP DQG OR\DOW\
WRSUREOHP
,W LV TXLUH SRVVLEOH WKDW RQH ZKR WDNHV XS ZRUN
ZLWKRXWWKHNQRZOHGJHRIOLNHV GLVOLNHVLQWHUHVWRUROGHU
ZLVHDELOLW\RULQDELOLW\EHFRPHGLVDSSRLQWHG$VDUHVXOWKH
LV HQJURVVHV LQ IUXVWUDWLRQ ,W LV SRVVLEOH WKDW SHUVRQ
EHFRPHV XQKDSS\ DQG GLVDSSRLQWHG ZKHQ KH WDNHV
DGPLVVLRQLQHQJLQHHULQJZLWKRXWWKHNQRZOHGJHRIKLVOHYHO
RI LQWHOOLJHQFH SHUVRQ EHFRPHV FLYLO HQJLQHHU ZLWKRXW
NQRZLQJ KLV DELOLW\ WR PRYH LQ RSHQ SODFHV RU OHDUQLQJ
GDQFHZLWKRXWWKHNQRZOHGJHRIWKHVWUHQJWKRIKLVOHJV
 ,GOHQHVV
,GOHPDQFDQQRWDFKLHYHDQ\WKLQJ+HH[SHULHQFHVWKH
VHQVH RI LQVXIILFLHQWO\ GLVDSSRLQWPHQW DQG VHOIGHIHDWLVP
+LVPLQGLVJUDGXDOO\GLVWXUEHG
 7KHDWWLWXGHRISDVWRUIXWXUH
6RPHSHRSOHUHSHDWHGO\WDONDERXW JRRGGD\V RISDVW
DQG WKH FRORXUIXO GUHDPV RI IXWXUH 7KH\ GR QRW PDNH
HIIRUWV LQ WKH SUHVHQW DQG DUH XQDEOH WR VROYH WKHLU
SUREOHPV7KH\VHHWKDWOLIHLVGXOO ZLWKRXWDQ\DLP,WLV
TXLUHSRVVLEOHWKDWWKHLUPLQGLVVSRLOHG
 9DOXHOHVVOLIH
6RPH SHRSOH GR QRW DFFHSW FRUUHFW YDOXHV 7KH\ GR
QRW DFFHSW WKH YDOXHV RI KRQHVW\ HIIRUWV WUXWK UHJXODULW\
IULHQGVKLS JHQHURVLW\ PHUFHU HWF ZKLFK PDNH WKH OLIH
VXFFHVVIXO ,QVWHDG RI VXFK YDOXHV WKH\ DFFHSW WKH YDOXHV
ZKLFKEULQJIDLOXUHVDQGH[SHULHQFHPLVHULHV
 'LVVDWLVIDFWLRQRIQHHGV
,I WKH QHHGV OLNH KXQJHU WKLUVW UHVW SUHVWLJH VHOI
UHVSHFWVWDWXVHWFDUHQRWVDWLVILHGWKHLQGLYLGXDOEHFRPHV

45
LVRODWHG GLVDSSRLQWHG LQVHFXUHG ,W LV REVHUYHG WKDW WKH
FKLOGUHQ QRW JHWWLQJ ORYH IURP SDUHQWV EHFRPH FULPLQDO ,I
WKH KXVEDQG  ZLIH GR QRW ORYH PXWXDOO\ WKHLU PHQWDO
KHDOWKLVGLVWXUEHG

7KHUHPHGLHVRIPDLQWDLQLQJPHQWDOKHDOWK
+HLGILHOG KDV VKRZQ IROORZLQJ UHPHGLHV IRU
PDLQWDLQLQJPHQWDOKHDOWK
D  3HUIHFWH[SUHVVLRQ
7R DGMXVW LQ WKH OLIH SHUIHFWH[SUHVVLRQ LV QHFHVVDU\
,I GHVLUHV DUH VXSSUHVVHG HYHU\ WLPH ZLWKRXW EHLQJ
H[SUHVVHG,WFDXVHVDEQRUPDOLW\7KHUHIRUHLWLVQHFHVVDU\
WRH[SUHVVHPRWLRQWREHIUHHIURPWHQVLRQ
E  +DUPRQ\
'LIIHUHQW  PRWLYHV RI LQGLYLGXDO VXFK DV VH[ DQJHU
IHDUKXQJHUHWF&RPSHWHZLWKHDFKRWKHUIRUVDWLVIDFWLRQ
LW FUHDWHV PHQWDO UHVWOHVVQHVV ,Q IDFW DOO PRWLYHV DUH
IXQFWLRQLQJ LQGHSHQGHQWO\ RI HDFK RWKHU VWLOO KRZHYHU
XOWLPDWHHQGLVKDSSLQHVVDQGVRWKHUHVKRXOGEHKDUPRQ\
DPRQJVWGLIIHUHQWPRWLYHV
F  'LUHFWLRQWRZDUGJHQHUDOJRDO
:KHQ ZH GLUHFW RXU PRWLYHV WRZDUG D JRDO RXU GLIIHUHQW
VHQWLPHQWVWKRXJKWVPRWLYHVHWFFDQJHWFRRUGLQDWHG,WLV
QRW SURSHU LI WKH LQGLYLGXDO KDV WKH WHQGHQF\ WR ILJKW RQO\
IRUWKHVDNHRIILJKW,IZHGLUHFWRXUWHQGHQF\WRZDUGVWKH
IDXOWV RI VRFLHW\ WKH GHYHORSPHQW RI LQGLYLGXDO LV
LQWHUIHUHG


46
7KHFRQFHSWRIVFLHQFHRIPHQWDOKHDOWK
 )RU WKH WRWDO GHYHORSPHQW RI LQGLYLGXDO PHQWDO KHDOWK LV
YHU\LPSRUWDQWFRQGLWLRQ:HVKRXOGVWXG\WKHVFLHQFHRIPHQWDO
KHDOWK/HWXVVHHVRPHRIWKHGHILQLWLRQVRIWKHVFLHQFHRIPHQWDO
KHDOWK
 ´7KH VFLHQFH RI PHQWDO KHDOWK LV UHODWHG ZLWK KXPDQ
ZHOIDUH DQG LW FRYHUV DOO WKH ILHOGV RI KXPDQ UHODWLRQVµ IUHH 
IUHH
 ´7KH PHDQLQJ RI PHQWDO KHDOWK VFLHQFH LV WR GLVFRYHU WKH
UXOHV RI PHQWDO KHDOWK DQG ILQG RXW WKH UHPHGLHV IRU LWV
PDLQWDLQDQHUµ
'UHYHU
´7KH PDLQ UHODWLRQ RI PHQWDO KHDOWK VFLHQFH LV PRUH
GHYHORSPHQWRIKXPDQUHODWLRQVµ
6NLQQHU
7KXVPHQWDOKHDOWKVFLHQFHVKRZVWKHUHPHGLHVWRSUHYHQW
SV\FKRORJLFDOSDLQV PDLQWDLQPHQWDOKHDOWK
,Q WKH PLGVW RI YHU\ FRPSOHWH OLIH )UXVWUDWLRQ DQG FRQIOLFW
DULVLQJDQGRIVXFKOLIHDQGWRVDYHPDQIURPWKHHYLOUHVXOWVLW
LVLQHYLWDEOHWRVWXG\VXFKDSSOLHGVFLHQFH

7KHUXOHVRIPHQWDOKHDOWK
 :HFDQQRWVXJJHVWH[HUFLVHVIRUPHQWDOKHDOWKOLNHSK\VLFDO
KHDOWK7RWDNHPHGLFLQHVRIFHUWDLQW\SHVSHUIHFWPHQWDOKHDOWK
FDQ QRW EH REWDLQHG ,W UHTXLUHV SURSHU HQYLURQPHQW ZD\V RI
OLYLQJOLIHVHOIXQGHUVWDQGLQJDQGFUHDWLYHDGMXVWPHQW7KHUHDUH
FHUWDLQUXOHVIRUPDLQWDLQLQJPHQWDOKHDOWK
 :H VKRXOG XQGHUVWDQG WKDW PHQWDO KHDOWK LV WKH UHVXOW
RIRQH·VGHYRWLRQ,WLVDSHUVRQDODGMXVWPHQWZKLFKLVWR

47
EHDFKLHYHGE\LQGLYLGXDOKLPVHOIWRDFTXLUHJRRGPHQWDO
KHDOWK
 7KH LQGLYLGXDO VKRXOG EHFRPH UHDOLVWLF ,Q HYHU\
VLWXDWLRQ RQH VKRXOG WKLQN RI OLJKW DQG ZURQJ RU
DGYDQWDJH DQG GLVDGYDQWDJH RQH VKRXOG UHDOLVWLFDOO\
DVVHVVRQH·VDELOLWLHVDQGVKRXOGEHFOHDUDERXWWKHDLP
DQGHIIRUWVVRWKDWWKHSUREOHPFDQEHVROYHG
 ,W LV DEVROXWHO\ QHFHVVDU\ WR REWDLQ VHOI NQRZOHGJH DQG
VHOI DFTXDLQWDQFH 6RFUDWHV RXU 5LVKHV KDYH JLYHQ
JROGHQDGYLDIRUPDLQWDLQLQJPHQWDOKHDOWK7KDWLVZK\
LW LV VDLG WKDW ´NQRZ WK\ VHOIµ WKH SHUVRQ ZKR DVVHVVHV
KLPVHOIFRUUHFWO\FRPHVRXWRIKLVSUREOHPVDQGFDQJHW
FRUUHFWSDWKRIOLIH

 :RUULHVFRQIOLFWVIDLOXUHVGLIILFXOWLHVHWFDUHLQHYLWDEOH
SDUWV RI OLIH :H VKRXOG DFFHSW DOO WKHVH WKLQJV WR D
FHUWDLQH[WHQWDQGIDFHWKHPEXWZHVKRXOGQRWVKLIWRXU
OLIHJRDOVE\EHFRPLQJIUXVWUDWHG
 %HIRUH H[SUHVVLQJ HPRWLRQ ZH VKRXOG FXOWLYDWH LWV
ERXQGDU\  VRFLDO IRUPDOLWLHV 2XU PLVHULHV DQJHU RU
GLVJXVW VKRXOG EH H[SUHVVHG LQ VXFK D ZD\ WKDW WKH
RWKHU SHUVRQV RI WKH VRFLHW\ DFFHSW LW ,W LV D VNLOO WR
H[SUHVV KDSSLQHVV PLVHU\ DQ[LHW\ JULHI IHDU DQJHU
HWF ZLWK FHUWDLQW\ ,W LV QHFHVVDU\ WR OHDUQ DOO WKHVH
WKLQJV
 7R EH LQYROYHG LQ RQH·V WDVN DQG DFTXLUH VDWLVIDFWLRQ
IURP LW LV DOVR HVVHQWLDO :H VKRXOG QRW PDNH
DEVWUDFWLRQV LQ RWKHUV ZRUN EXW ZH VKRXOG EH FUHDWLYH
:H PXVW OHDUQ WKHVH WKLQJV WR PDLQWDLQ PHQWDO KHDOWK
:LWKRXW EHFRPLQJ GD\ GUHDPHU RU WKH VSHFWDWRU RI WKH

48
VLWXDWLRQ ZH VKRXOG PDNH RXU GHYHORSPHQW FUHDWLYHO\
2QH VKRXOG EH EROG  RSWLPLVW 2QH VKRXOG VHHN ORYH
DGYHQWXUH DQG VHFXULW\ DQG FXOWLYDWH WKH VHQVH RI
KXPRUV:HVKRXOGEHSUHSDUHGWRDFFHSWRXUPLVWDNHV
DQG PDNH VXIILFLHQW DWWHPSWV LQ FRPLQJ RXW RI FULWLFDO
FRQGLWLRQV $OO WKH WKLQJV VWDWHG DERYH DUH QHFHVVDU\ WR
PDNHSHUVRQDOLW\EDODQFHG
 0DF 'RXJDO VD\V WKDW WKH LQVWLQFWV VKRXOG EH
VXEOLPDWHG WKH SHUVRQDOLW\ RI LQGLYLGXDO GHYHORSV E\
LQVWLQFWDQGPHQWDOKHDOWKFDQEHDFTXLUHGVXEOLPDWLQJ
WKH LQVWLQFWV 0DF 'RXJDO KDV HPSKDVL]H RQ WKH
VXSSUHVVLRQRIGHVLUHV LPSXOVHV,WLVVDLGLQ*LWDWKDW
PRUH HQMR\PHQW RI KH GRHV QRW FDOP LW ,W LV MXVW OLNH
GURSSLQJ*KHHLQILUH8QOLPLWHGXVHRIVH[XDOLPSXOVHV
PDNHLWPRUHH[FLWLQJ,QUHOLJLRXVERRNV,WLVDGYLVHGWR
KDYHPRUHUHVWUDLQWVLQVH[OLIH
 7KHDLPVRIOLIHVKRXOGEHKLJK1RWWREHLQYROYHGWUXIIOH
PDWWHUV OLYH LQ WKH SUHVHQW ZLWKRXW WKH ZRUULHV RI
IXWXUHLPLWDWHPLGGOHFODVVREVHUYHWKHUXOHVRIQDWXUH
QRW WR VWRS WKH SURJUHVV DIWHU DFFHSWLQJ RQH·V
OLPLWDWLRQV QRW WR JLYH XS WKH WDVN EHFDXVH RI
GLVDSSRLQWPHQW2QHVKRXOGEHFRQVFLRXVDERXWWKHEDG
HIIHFWV RI GLVDSSRLQWPHQW DUH WKH JHQHUDO UXOHV RI
PDLQWDLQLQJ PHQWDO KHDOWK 6\VWHPDWLF SHUVRQ GRHV QRW
JHW IDLOXUH LQ DQ\ ILHOG RI OLIH RQH VKRXOG EH UHDG\ WR
FRPSOHWHWKHWDVN

7KHLPSRUWDQFHRIPHQWDOKHDOWK
 6RPH LQVWLWXWLRQV DUH ZRUNLQJ DW LQWHUQDWLRQDO OHYHO IRU
PHQWDO KHDOWK 7KH *RYHUQPHQWV RI HYHU\ FRXQWU\ DQG YDULRXV

49
EHQHYROHQW LQVWLWXWLRQV DUHDGYLFH LQ WKLV ILHOG 7KHVH WKLQJV DUH
VXIILFLHQWWRPHQWLRQWKHLPSRUWDQFHRIPHQWDOKHDOWK
 +DSS\ OLIH LV WKH DLP RI HYHU\ LQGLYLGXDO +DSSLQHVV LV D
UHODWLYHFRQFHSW0RVWRIWKHSHRSOHDFFHSWHFRQRPLFZHDOWKDQG
SK\VLFDOKHDOWKDVWKHPHDVXUHVRIKDSSLQHVV,WLVVDLGWKDWILUVW
KDSSLQHVVLVRQH·VKHDOWKDQGWKHRWKHUWKLQJLVKDYLQJVXIILFLHQW
IRRGJUDLQV7KLVLVDSURYHUELQ*XMDUDW
 ,Q WKLV SURYHUE SK\VLFDO KHDOWK DUH PDWHULDO ZHDOWK DUH
LQGLFDWRUVRIKDSSLQHVVEXWDVDVWXGHQWRISV\FKRORJLFDOZHFDQ
VD\ WKDW WKH PHQWDO KHDOWK LV UHDO KDSSLQHVV 0DQ PD\ EH
PDWHULDOO\ ULFK PD\ KDYH DEXQGDQFH KDSSLQHVV DQG ZHDOWK
3K\VLFDOO\KHDOWK\EXWLIKHLVQRWDEOHWRVROYHKLVSV\FKRORJLFDO
SX]]OHV H[SHULHQFLQJ LQIHULRULW\ FRPSOH[ RU VHQVH RI TXLW
FRQVWDQWO\KDYLQJVPDOORUELJZRUULHVFDQQRWWDNHDQ\GHFLVLRQ
LQGHSHQGHQWO\ RU VHHNLQJ DGYLFH LQ VPDOO PDWWHUV 8QDEOH WR
FRQWURO 2QH·V IHHOLQJV  HPRWLRQV RU KDYLQJ WKH SUREOHPV RI
JRRG PHQWDO KHDOWK EHFRPH YHU\ XQKDSS\ 6XFK SHUVRQ IHHOV
WKDWWKHOLIHLVQRWZRUWKOLYLQJ
 8UEDQL]DWLRQ FKDQJHG VRFLDO DQG IDPLO\ V\VWHP VRFLDO
YDOXHV FLUFXPVWDQFHV WKH OLIH LV EHFRPLQJ PRUH DQG PRUH
FRPSRVH DQG DV D UHVXOW WKH SURSRUWLRQ RI DEQRUPDO SHUVRQV LV
LQFUHDVLQJ GD\ E\ GD\ 2Q WKH RWKHU VLGH WKH QXPEHU RI PHQWDO
KRVSLWDOV DQG WKH H[SHUWV LV DOVR LQVXIILFLHQW ,Q VXFK
FLUFXPVWDQFHV ZH VKRXOG DWWHPSWV WR SUHYHQW PHQWDO GLVRUGHU
7KDWLVZK\LWLVVDLGWKDWSUHYHQWLRQLVEHWWHUWKDQFXUHµ,QVWHDG
RIUHFRYHULQJE\WDNLQJPHGLFLQHVZHVKRXOGPDNHHIIRUWVQRWWR
IDOO LOO :H VKRXOG FUHDWH VXFK FLUFXPVWDQFHV ZLWKRXW FRQIOLFWV
DQG WHQVLRQ VR WKDW PHQWDO KHDOWK LV PDLQWDLQHG ZH VKRXOG
FUHDWH VXFK VRFLDO V\VWHP LQ ZKLFK PHQWDO KHDOWK EHFRPHV

50
VRXQG,WZRXOGEHDJUHDWVHUYLFHWRPDQNLQG7KXVIURPVRFLDO
SRLQWRIYLHZPHQWDOKHDOWKLVYHU\LPSRUWDQWWKLQJ

 7KHIDFWRUVRIPHQWDOKHDOWK
 &HUWDLQ IDFWRUV RI PHQWDO KHDOWK DUH PHQWLRQHG EHORZ ,Q
WKH SUHVHQW VWXG\ WKHVH IDFWRUV DUH XVHG WKH GLPHQVLRQV RI
PHQWDOKHDOWKDQGWKHLUPHDQLQJLVDVXQGHU
D  3HUFHSWLRQRIUHDOLW\
7KH UHDOLVWLF SHUFHSWLRQ RI DQ LQGLYLGXDO LV DQ
LPSRUWDQWIDFWRURIPHQWDOKHDOWK7KHSHUFHSWLRQZKLFKLV
IUHHIURPRQH·VQHHGVSUHMXGLFHVDWWLWXGHVHWFLVVDLGWREH
UHDOLVWLFSHUFHSWLRQVXFKSHUVRQVFDQGLVFULPLQDWHEHWZHHQ
WKHLUH[SHFWDWLRQVDQGUHDOLVWLFIDFWV
E  ,QWHJUDWHGSHUVRQDOLW\
7KHLQWHJUDWRUSHUVRQDOLW\LVPDGHXSRIPDQ\WUDLWV
$OOWKHVHWUDLWVDUHRUJDQL]HGWRJHWKHUDQGDFWDVRQHXQLW
,WLVWKHVLJQRIWKHEHVWPHQWDOKHDOWK
F  3RVLWLYHVHOIDVVHVVPHQW
 :KHQPRVWRIWKHQHHGVDUHVDWLVILHGWKHUHLVDQHHGRIVHOI
DVVHVVPHQW ,I WKH VHOIDVVHVVPHQW LV QRW PDGH WKH PHQWDO
KHDOWKLVFRQVLGHUHGWREHZHHN
G  $WWLWXGHVWRZDUGVJURXS
*URXS RULHQWHG DWWLWXGHV DUH QHFHVVDU\ 7KHVH
DWWLWXGHVSUHYDLODFFRUGLQJWRRQH·VDELOLWLHVDQGOLPLWDWLRQV
DQGDUHEDVHGRQWKHDFFHSWDQFHRIUHDOLW\
H  0DVWHU\RYHUHQYLURQPHQW
,W LV QHFHVVDU\ WR KDYH PDVWHU\ RQ LQGLYLGXDOV 
WKLQJVLQVRFLDODQGQDWXUDOHQYLURQPHQWWRDFKLHYHPHQWDO
KHDOWK

51
 /,)(6(7,6)(&7,21
,Q WKDW VHQVH OLIH VDWLVIDFWLRQ FRQFHSW JRHV EH\RQG WKH
OLYLQJFRQGLWLRQVDSSURDFKZKLFKWHQGVWRIRFXVRQWKHPDWHULDO
UHVRXUFHV DYDLODEOH WR LQGLYLGXDOV 7KHUH DUH WKUHH PDMRU
FKDUDFWHULVWLFVDUHDVVRFLDWHGZLWKOLIHVDWLVIDFWLRQ
 /LIH VDWLVIDFWLRQ UHIHUV WR LQGLYLGXDOV¶ OLIH VLWXDWLRQV 7KH
FRQFHSWUHTXLUHVDPLFURSHUVSHFWLYHZKHUHWKHFRQGLWLRQV
DQGSHUFHSWLRQVRILQGLYLGXDOVSOD\DNH\UROH0DFURVFRSLF
IHDWXUHV UHODWLQJ WR WKH HFRQRPLF DQG VRFLDO VLWXDWLRQ RI D
VRFLHW\DUHLPSRUWDQWIRUSXWWLQJWKHILQGLQJVDWLQGLYLGXDO
OHYHOLQWRWKHLUSURSHUFRQWH[WEXWWKH\GRQRWWDNHFHQWUH
VWDJH
 /LIH VDWLVIDFWLRQ LV D PXOWLGLPHQVLRQDO FRQFHSW $V QRWHG
DERYHWKHQRWLRQRITXDOLW\RIOLIHDQGWKHFRQVLGHUDWLRQRI
VHYHUDODUHDVRIOLIHEURDGHQWKHQDUURZHUIRFXVRQLQFRPH
DQG PDWHULDO FRQGLWLRQV ZKLFK SUHYDLOV LQ RWKHU
DSSURDFKHV 0XOWLGLPHQVLRQDOLW\ QRW RQO\ UHTXLUHV WKH
GHVFULSWLRQ RI VHYHUDO OLIH GRPDLQV EXW HPSKDVL]HV WKH
LQWHUSOD\EHWZHHQGRPDLQVDVWKLVFRQWULEXWHVWRTXDOLW\RI
OLIH
 4XDOLW\RIOLIHVDWLVIDFWLRQLVPHDVXUHGE\REMHFWLYHDVZHOO
DV VXEMHFWLYH LQGLFDWRUV 6XEMHFWLYH DQG DWWLWXGLQDO
SHUFHSWLRQV DUH RI SDUWLFXODU UHOHYDQFH LQ LGHQWLI\LQJ
LQGLYLGXDO JRDOV DQG RULHQWDWLRQV ,QGLYLGXDO SHUFHSWLRQV
DQG HYDOXDWLRQV DUH PRVW YDOXDEOH ZKHQ WKHVH VXEMHFWLYH
HYDOXDWLRQV DUH OLQNHG WR REMHFWLYH OLYLQJ FRQGLWLRQV
$SSO\LQJ ERWK ZD\V RI PHDVXULQJ TXDOLW\ RI OLIH JLYHV D
PRUHFRPSOHWHSLFWXUH


52
'HILQLWLRQRIOLIHVDWLVIDFWLRQ
7KHWHUPOLIHVDWLVIDFWLRQPRUDOHDQGKDSSLQHVVDUHRIWHQ
XVHGLQWHUFKDQJHDEO\WRUHIHUWRZHOOEHLQJ\HWWKHUHFRQVWUXFWV
DUHYHU\PXFKLQ PHDQLQJ/LIH6DWLVIDFWLRQUHIHUVWRWKHRYHUDOO
FRJQLWLYH MXGJPHQWDO DVSHFWV RI VXEMHFWLYH ZHOO EHLQJ 'LHQHU
 
*HRUJH   GHILQHG OLIH VDWLVIDFWLRQ DV D FRJQLWLYH
SURFHVV E\ ZKLFK DQ LQGLYLGXDO DVVHVVHV KLV RU KHU SURJUHVV
WRZDUGV GHVLUHG JRDOV *HRUJH DOVR GHILQHG KDSSLQHVV DV
´WUDQVLWRU\ PRRGV RI JDLHW\ UHIOHFWLQJ WKH DIIHFW WKDW SHRSOH IHHO
WRZDUGWKHLUFXUUHQWVWDWHRIOLIHµ
1HXJDUWHQ+DULQJKXUVWDQG7RELQ  VWDWHGWKDW]HVW
UHVROXWLRQ DQG IRUWLWXGH FRQJUXHQFH EHWZHHQ GHVLUHG DQG
DFKLHYHG JRDOV SRVLWLYH VHOI FRQFHSW DQG PRRG FRQVWLWXWH WKH
SV\FKRORJLFDOFRQFHSWRIOLIHVDWLVIDFWLRQ
8VHRIOLIHVDWLVIDFWLRQ
/LIHVDWLVIDFWLRQPHDVXUHPHQW
6RFLDOGHYHORSPHQWJXLGDQFH
,QWURGXFWLRQRIJRRGOLYLQJ
6\PSWRPVRIJRRGOLIHVDWLVIDFWLRQ
5HVHDUFKHU VD\V WKDW DIWHU WKDW VWXG\ RI OLIH VDWLVIDFWLRQ VRPH
PDMRUV\PSWRPVRIOLIH
VDWLVIDFWLRQWKHVHDUH«
7RXQGHUVWDQGUHVSRQVLELOLWLHV
3URSHUJXLGDQFHDERXWWKHIXWXUH
6HOIUHVSHFW
3HUVRQDOYDOXH
)DFWRUVDIIHFWLQJOLIHVDWLVIDFWLRQ
3V\FKRORJLFDOIDFWRU
3HUVRQDOLW\

53
6HOIUHVSHFW
3HUVRQDODWWLWXGHWRZDUGVHOI
7RVHHUHDOLW\DQGXQGHUVWDQG
(QYLURQPHQWDOFRQWURODQGLPSUHVVLRQ
6RFLDOIDFWRU
)DPLO\OLIH
%URWKHUKRRGTXDUUHO
+HDOWK\VRFLDOUHODWLRQVKLS
+HDOWK\EXVLQHVVHQYLURQPHQW
3HUVRQDOIDFWRU
7RGHVLUHWRVXFFHVVLQOLIH
3HUVRQDOLW\V\PSWRPV
(FRQRPLFDOVDWLVIDFWLRQ
6RFLDODQGFXOWXUDOVDWLVIDFWLRQ
5HDVRQIRU/LIHVDWLVIDFWLRQ
8QGHUVWDQGLQJRIOLIH·VUHDOLW\
*HQGHUUHDVRQ
,QWHOOLJHQW
3HUVRQDOLW\
)DPLO\OLIH
(FRQRPLFDOVDWLVIDFWLRQ
,QGXVWULDOVDWLVIDFWLRQ
/LIHVDWLVIDFWLRQLQMRE
/LIHVDWLVIDFWLRQLQEXVLQHVV
3K\VLFDOOLIHVDWLVIDFWLRQ
7\SHVRIOLIHVDWLVIDFWLRQ
(QYLURQPHQWDOOLIHVDWLVIDFWLRQ
6RFLDOOLIHVDWLVIDFWLRQ
3V\FKRORJLFDOVDWLVIDFWLRQ
(FRQRPLFDOVDWLVIDFWLRQ

54
)DPLO\VDWLVIDFWLRQ
$UHDVRIOLIHVDWLVIDFWLRQ
+HDOWK
3HUVRQDO
(FRQRPLF
0DUWLDO
6RFLDO
-RE
),9()$&72562)/,)(6$7,6)$&7,21
  =HVWYV$SDWK\
,W UHODWHV WR DQ HQWKXVLDVP RI UHVSRQVH WR OLIH LQ JHQHUDO
DQGZDVQRWUHODWHGWRDQ\VSHFLILFW\SHRIDFWLYLW\VXFKDVVRFLDO
RU LQWHOOHFWXDO HQJDJHPHQWV $ VXEMHFW ZKR ZDV HQWKXVLDVWLF
DERXW VLWWLQJ KRPH UHDGLQJ ZDV VFRUHG DV KLJK DV DQ HQHUJHWLF
SHUVRQZDVRQWKLVVFDOH3K\VLFDOHQHUJ\DVZHOODVLQWHOOHFWXDO
HQHUJ\ DQG RWKHUKLJKO\ LQYROYHG SXUVXLWV FRQWULEXWHG WR D KLJK
VFRUH 1HXJDUWHQHWDO 
  5HVROXWLRQDQGIRUWLWXGH
,WPHDVXUHVWKHUHVSRQGHQWV·DFWLYHDFFHSWDQFHRISHUVRQDO
UHVSRQVLELOLW\ IRU WKHLU OLYHV UDWKHU WKDQ SDVVLYHO\ DFFHSWLQJ RU
FRQGRQLQJ ZKDW KDV KDSSHQHG WR WKHP (ULNVRQ·V LQWHJULW\ LV
VLPLODULQFRQFHSWXDOL]DWLRQDQGUHODWHVWRWKHPHDQLQJIXOQHVVRI
OLIHDQGWKHODFNRIIHDURIGHDWK 1HXJDUWHQHWDO 
  &RQJUXHQFHEHWZHHQGHVLUHGDQGDFKLHYHGJRDOV
,W PHDVXUHV WKH UHODWLYH GLIIHUHQFH EHWZHHQ GHVLUHG DQG
DFKLHYHGJRDOVFDXVHGRQHWREHVDWLVILHGRUGLVVDWLVILHGZLWKOLIH
LQWKLVUDWLQJ 1HXJDUWHQHWDO 
  6HOIFRQFHSW
,W LV EDVHG RQ RQH·V SUHVHQW HPRWLRQDO SK\VLFDO DQG
LQWHOOHFWXDO GLPHQVLRQV 3HUVRQV ZKR GR QRW IHHO ROG EXW DUH

55
FRQFHUQHG ZLWK WKHLU DSSHDUDQFH DQG MXGJH WKHPVHOYHV WR EH
ZLVH DQG FRPSHWHQW WHQG WR UDWH WKHPVHOYHV KLJKHU RQ WKLV
IDFWRU 3DVW VXFFHVVIXO OLYLQJ PD\ FRQWULEXWH WR WKLV FRPSRQHQW
EXWRQO\LQGLUHFWO\
  0RRGWRQH
7KH ILQDO IDFWRU PRRG WRQH UHODWHV WR RSWLPLVP DQG
KDSSLQHVV DQG RWKHU 3RVLWLYH DIIHFWLYH UHVSRQVHV 'HSUHVVLRQ
VDGQHVV ORQHOLQHVV LUULWDELOLW\ DQG SHVVLPLVP DUH IHHOLQJV WKDW
ZRXOG UHVXOW LQ YHU\ ORZ VFRUHV $VVHVVLQJ OLIH VDWLVIDFWLRQ LV
PRUH FRPSOH[ WKDQ MXVW PHDVXULQJ KDSSLQHVV EXW KDSSLQHVV
ZLWKWKHSUHVHQWOLIHVWDWHLVDQLPSRUWDQWFRQWULEXWRU 1HXJDUWHQ
HWDO 

48$/,7<2):25./,)(
&XUUHQWO\ WKH WHUP
TXDOLW\ RI OLIH
 GHQRWHV WZR PHDQLQJV
  WKH SUHVHQFH RI FRQGLWLRQV GHHPHG QHFHVVDU\ IRU D JRRG OLIH
DQG   WKH SUDFWLFH RI JRRG OLYLQJ DV VXFK :KHQ XVHG DW WKH
VRFLHWDOOHYHORQO\WKHIRUPHUPHDQLQJDSSOLHV:KHQZHVD\WKDW
WKHTXDOLW\RIOLIHRIWKHSHRSOHLQDFRXQWU\LVSRRUZHPHDQWKDW
HVVHQWLDOFRQGLWLRQVDUHODFNLQJVXFKDVVXIILFLHQWIRRGKRXVLQJ
DQGKHDOWKFDUH,QRWKHUZRUGVWKHFRXQWU\LVQRW¶OLYDEOH·IRULWV
LQKDELWDQWV $W WKH LQGLYLGXDO OHYHO WKH WHUP TXDOLW\ RI OLIH FDQ
WDNH RQ ERWK PHDQLQJV :KHQ ZH VD\ WKDW VRPHERG\ GRHVQ
W
KDYH D JRRG OLIH ZH PD\ PHDQ WKDW KH RU VKH ODFNV WKLQJV
GHHPHG LQGLVSHQVDEOH DQG RU WKDW WKLV SHUVRQ GRHV QRW WKULYH
7KHVH FRQGLWLRQV PD\ FRLQFLGH EXW WKLV LV QRW QHFHVVDULO\ WKH
FDVH $ SHUVRQ FDQ EH ULFK SRZHUIXO DQG SRSXODU EXW VWLOO EH
WURXEOHG 2Q WKH RWKHU KDQG VRPHRQH ZKR LV SRRU SRZHUOHVV
DQG LVRODWHG PD\ QHYHUWKHOHVV EH WKULYLQJ ERWK PHQWDOO\ DQG
SK\VLFDOO\ , UHIHU WR WKHVH YDULDQWV DV UHVSHFWLYHO\ ¶SUHVXPHG·

56
TXDOLW\ RI OLIH DQG ¶DSSDUHQW· TXDOLW\ RI OLIH 4XDOLW\ RI ZRUN OLIH
KDV EHFRPH DQ LQFUHDVLQJ VRXJKW DIWHU VXEMHFW RI WKHRU\ DQG
UHVHDUFK EHFDXVH RI WKH JURZLQJ GLVVDWLVIDFWLRQ DPRQJ ZRUNHUV
DERXW MREV WKDW DUH WHGLRXV DQG PRQRWRQRXV 0DFFRE\  
VXPPDUL]HGHIIHFWVRIPRQRWRQRXVDQGGHDGHQGMREVDV´ZKHQ
WKH MRE GRHV QRW HPSOR\ WKH ZKROH SHUVRQ GRHV QRW SURYLGH DQ
RSSRUWXQLW\ WR GHYHORS DQG XVH YDOXHG DELOLWLHV WKH ZRUNHU ZLOO
IHHO GHKXPDQL]HG E\ WKH MRE DQG EHFRPH SDVVLYH DQG DOLHQDWHG
HLWKHUIURPKLPVHOIRUIURPKLVVRFLHW\
7KHUH DUH V\VWHPDWLF DQG XQLYHUVDO FKDUDFWHULVWLFV RI WKH
ZRUNHQYLURQPHQWZKLFKPD\\LHOGVDWLVIDFWLRQWRLQGLYLGXDOVDV
GHSHQGLQJ XSRQ KLV XQLTXH FXOWXUDO HQYLURQPHQW VRFLDO FODVV
IDPLO\ UHDULQJ HGXFDWLRQ DQG SHUVRQDOLW\ %XW WKH ZRUNLQJ
HQYLURQPHQWFDQH[HUFLVHIDYRUDEOHRUXQIDYRUDEOHLQIOXHQFHVRQ
ZRUNDFWLYLW\DQGNQRZOHGJHRIWKHGLUHFWLRQDQGQDWXUHRIWKHVH
LQIOXHQFHV DUH LQGLVSHQVDEOH LQ RUGHU WR FUHDWH WKH RSWLPXP
ZRUNLQJ HQYLURQPHQW 7KXV TXDOLW\ RI ZRUN OLIH UHIHUV WR WKH
IDYRUDEOHQHVV DQG XQIDYRUDEOHQHVV RI D MRE HQYLURQPHQW IRU
SHRSOH ,W LV D JHQHULF SKDVH WKDW FRYHUV SHUVRQ·V IHHOLQJV DERXW
HYHU\ GLPHQVLRQ RI ZRUN LQFOXGLQJ HFRQRPLF UHZDUGV DQG
EHQHILWV VHFXULW\ ZRUNLQJ FRQGLWLRQV RUJDQL]DWLRQDO DQG
LQWHUSHUVRQDOUHODWLRQVKLSVDQGLWVLQWULQVLFPHDQLQJLQSHUVRQ·V
OLIH &RQVWUXFWV VXFK DV VDWLVIDFWLRQ SURGXFWLYLW\ FRPPLWPHQW
ZRUN PRWLYDWLRQ HWF DUH SDUW RI ZKDW HPHUJLQJ DV WKH FRQFHUQ
IRUTXDOLW\RIZRUNLQJOLIH'H  EHOLHYHVWKDWTXDOLW\RIZRUN
OLIH LV DQ LQGLFDWLRQ RI KRZ IUHH VRFLHW\ LV IURP H[SORLWDWLRQ
LQMXVWLFH LQHTXDOLW\ RSSUHVVLRQ DQG UHVWULFWLRQV RQ WKH
FRQWLQXLQJJURZWKRIPDQ :DKHHGD.KDQ0HHQD2VPDQ\DQG
0:DVHHP 


57
/,)(6$7,6)$&7,21$1'+$33,1(66
/LNH9HHQKRYHQ  XVHVWKHGHILQLWLRQRIOLIHVDWLVIDFWLRQDV
´WKHGHJUHHWRZKLFKDQLQGLYLGXDOMXGJHVWKHRYHUDOOTXDOLW\RIKLVOLIH
DVDZKROH IDYRUDEO\µ    ,W PXVW DOVR EH DFNQRZOHGJHG WKDW
WKHUH DUH FKDOOHQJHV WR WKH YDOLGLW\ RI YDULRXV PHDVXUHV XVHG LQ WKH
OLWHUDWXUH RQ D QXPEHU RI JURXQGV DQG DOVR VSLULWHG GHIHQVHV VHH
/D\DUGD)UH\DQG6WXW]HU
'DYLGVRQ 0DUVKDOO 7RPDUNHQ DQG +HQULTXHV  6FKZDU]
DQG6WUDFN 'UDZLQJXSRQDPHWDDQDO\VLVRIVWXGLHVLQ
FRXQWULHV 9HHQKRYHQ LGHQWLILHV WKH IROORZLQJ IDFWRUV DV RQHV
DVVRFLDWHG ZLWK KDSSLQHVV UDWKHU WKDQ XQKDSSLQHVV ² OLYLQJ LQ DQ
HFRQRPLFDOO\ SURVSHURXV FRXQWU\ ZKHUH IUHHGRP DQG GHPRFUDF\ DUH
UHVSHFWHG SROLWLFDO VWDELOLW\ EHLQJ D SDUW RI D PDMRULW\ UDWKHU WKDQ D
PLQRULW\EHLQJWRZDUGWKHWRSRIWKHVRFLDOODGGHUEHLQJPDUULHGDQG
KDYLQJJRRGUHODWLRQVKLSVZLWKIDPLO\DQGIULHQGVEHLQJPHQWDOO\DQG
SK\VLFDOO\KHDOWK\EHLQJDFWLYHDQGRSHQPLQGHGIHHOLQJLQFRQWURORI
RQH·V OLIH KDYLQJ DVSLUDWLRQV LQ VRFLDO DQG PRUDOPDWWHUV UDWKHU WKDQ
PRQH\PDNLQJDQGEHLQJSROLWLFDOO\FRQVHUYDWLYH  *LYHQWKH
LPSRUWDQFH RI ZRUN ERWK HFRQRPLFDOO\ DQG VRFLDOO\ RQH·V
DFKLHYHPHQWV DQG H[SHULHQFHV DW ZRUN DQG WKH TXDOLW\ RI WKHLU
ZRUNLQJ OLIH LV DQRWKHU YHU\ LPSRUWDQW FRPSRQHQW RI RYHUDOO
VDWLVIDFWLRQ
8QHPSOR\PHQW²GHSULYDWLRQRIZRUN²FDQVLPLODUO\EHH[SHFWHG
WREHLPSRUWDQW$QXPEHURIVWXGLHVHPSKDVL]HWKHLPSRUWDQFHRIWKH
TXDOLW\RIVRFLDOUHODWLRQVKLSVDQGWKHUHODWLYHXQLPSRUWDQFHRILQFRPH
LQ GHWHUPLQLQJ VDWLVIDFWLRQ ,QGHHG WKHOLWHUDWXUH LV GLYLGHG DV WR WKH
SUHVHQFH RI DQ LQFRPH HIIHFW VHH )ULMWHUV +DLVNHQ'H 1HZ DQG
6KLHOGV  .UDIW   6HYHUDO LQWHUHVWLQJ GHEDWHV DULVH IURP WKH
FRQVLGHUDWLRQ DQG DWWHPSWHG HPSLULFDO PHDVXUHPHQW RI ZHOOEHLQJ
:KDW DUH WKH UHODWLYH FRQWULEXWLRQV RI IL[HG SHUVRQDOLW\ WUDLWV
HQYLURQPHQWDO FLUFXPVWDQFHV DQG OLIH HYHQWV" ,V LW DFWXDO
FLUFXPVWDQFHV WKDW PDWWHU RU UDWKHU UHODWLYLWLHV WR VRPH SHUFHLYHG
QRUP",WLVFOHDUWKDWKXPDQVKDYHDQLQWULQVLFWHQGHQF\WREHKDSS\

58
DQG VDWLVILHG RU DW OHDVW WR UHSRUW WKDW WKH\ DUH KDSS\ DQG VDWLVILHG
:KHQ SHRSOH DUH DVNHG WR UDWH WKHLU OHYHOV RI KDSSLQHVV RU OLIH
VDWLVIDFWLRQ RQ D VFDOH WKH UHVXOWLQJ GLVWULEXWLRQ LV KLJKO\ VNHZHG ,I
\RX SLFWXUH D ´QHLWKHU VDWLVILHG QRU GLVVDWLVILHGµ PLGSRLQW WKH YDVW
EXON RI UHVSRQVHV OLH WR WKH VDWLVILHG VLGH RI WKH VFDOH &OHDUO\ D
JHQHUDO VHQVH RI ZHOOEHLQJ LV IHOW E\ SHRSOH ZKR KDYH H[SHULHQFHG
YDVWO\GLIIHUHQWGHJUHHVRIIRUWXQHDQGDGYHUVLW\3HRSOHVHHPWREHIDU
PRUH VDWLVILHG ZLWK DVSHFWV RI WKHLU ´SULYDWH GRPDLQµ VXFK DV WKHLU
PDUULDJHIDPLO\OLIHDQGMREWKDQ
WKH\DUHZLWKWKLQJVLQWKHSXEOLFGRPDLQVXFKDVWKHVRFLDOVHFXULW\
V\VWHP SXEOLF VDIHW\ RU WKH HQYLURQPHQW *ODW]HU   
&XPPLQV·´7KHRU\RI6XEMHFWLYH:HOOEHLQJ+RPHRVWDVLVµSURSRVHVWKDW
KXPDQV KDYH HYROYHG VXFK WKDW VXEMHFWLYH ZHOOEHLQJ LV DFWLYHO\
PDLQWDLQHGDWDSRVLWLYHOHYHOE\SV\FKRORJLFDOGHYLFHVPXFKOLNHWKH
ERG\ELRORJLFDOO\PDLQWDLQVEORRGWHPSHUDWXUHDQGEORRGSUHVVXUHLQD
QDUURZ UDQJH &XPPLQV (FNHUVOH\ 3DOODQW 9DQ 9XJW DQG 0LVDMRQ
  ,V WKH REVHUYHG YDULDWLRQ LQ KDSSLQHVV RU OLIH VDWLVIDFWLRQ
SUHGRPLQDQWO\GXHWR
´IL[HG HIIHFWVµ ZKHUH FHUWDLQ LQGLYLGXDOV KDYH D SRVLWLYH GLVSRVLWLRQ
DQGRWKHUVDQHJDWLYHGLVSRVLWLRQWRZDUGVOLIHRULVVDWLVIDFWLRQPDLQO\
VKDSHG E\ OLIH HYHQWV" 7KH WUXWK DSSHDUV WR EH VRPH FRPELQDWLRQ RI
WKH WZR 7KHUH DUH SHUVRQDOLW\ WUDLWV DQG UHODWLYHO\ VWDEOH
FKDUDFWHULVWLFV VXFK DV EHLQJ PDUULHG ZKLFK DUH DVVRFLDWHG ZLWK
KLJKHUOHYHOVRIOLIHVDWLVIDFWLRQ%XWOLIHHYHQWVVXFKDVWKHGHDWKRID
ORYHG RQH DOVR FOHDUO\ KDYH DQ LPSDFW 7KH LPSDFW RI OLIH HYHQWV ZLOO
DOVR YDU\ DFFRUGLQJ WR PHGLDWLQJ IDFWRUV VXFK DV SHUVRQDOLW\ WUDLWV
6RFLDO VXSSRUW QHWZRUNV IRU H[DPSOH PD\ LPSURYH ZHOOEHLQJ ERWK
GLUHFWO\DQGLQGLUHFWO\WKURXJKDQLPSURYHGFDSDFLW\WRVFRSHZLWKOLIH
HYHQWV +HDGH\ DQG :HDULQJ  9HHQKRYHQ   +RZ WUDQVLWRU\
VXFK HIIHFWV DUH LV DQRWKHU PDWWHU %ULFNPDQ &RDWHV DQG -DQRII
%XOPDQ·V   IDPRXV VWXG\ RI ORWWHU\ ZLQQHUV DQG SHUVRQV ZKR
EHFDPH SDUDO\]HG DIWHU DFFLGHQWV VKRZV WKDW KXPDQV KDYH D
UHPDUNDEOH DELOLW\ WR FRSH ZLWK OLIH HYHQWV 6XFK ILQGLQJV SURYLGH

59
VWURQJ VXSSRUW IRU ´DGDSWDWLRQ OHYHO WKHRU\µ ZKLFK VXJJHVWV WKDW
KXPDQV EHFRPH DFFXVWRPHG WR WKHLU FLUFXPVWDQFHV RU ´OHYHO RI
VWLPXOLµ DQG WKDW LW LV RQO\ ZKHQ WKHUH LV D FKDQJH LQ WKHVH IDFWRUV
WKDW WKHUH LV D UHVXOWLQJ FKDQJH LQ RYHUDOO VDWLVIDFWLRQ $UJ\OH DQG
0DUWLQ 7KLVWKHRU\LVXVHIXOLQH[SODLQLQJWKHDEVHQFHRID
UREXVW UHODWLRQVKLS EHWZHHQ LQFRPH DQG VDWLVIDFWLRQ ² LW LV RQO\
FKDQJHVLQLQFRPHWKDWLQYRNHDFKDQJHLQVDWLVIDFWLRQ7KLVFRXOGEH
SXWPRUHJHQHUDOO\WRVD\WKDWLWLVGHYLDWLRQV
IURP WKH LQGLYLGXDO·V SHUFHLYHG QRUP WKDW LQYRNHV KHLJKWHQHG RU
GLPLQLVKHG VDWLVIDFWLRQ 7KXV D SHUVRQ·V LQFRPH UHODWLYH WR WKH
DYHUDJH LQFRPH LQ WKHLU QHLJKERUKRRGV RU VRFLRHFRQRPLF FLUFOH PD\
EH PRUH LPSRUWDQW WKDQ DEVROXWH LQFRPH LQ VKDSLQJ IHHOLQJV RI
VDWLVIDFWLRQ(PSLULFDOVXSSRUWIRUWKHDGDSWDWLRQOHYHOWKHRU\DQGIRU
WKH QRWLRQ WKDW FRPSDULVRQV DUH PRUH LPSRUWDQW WKDQ DEVROXWHV FDQ
EHUHDGLO\IRXQGLQWKHOLWHUDWXUH7KHWHUP´KDELWXDWLRQµDOVRDSSHDUV
IRU WKH SKHQRPHQRQ RI SHRSOH EHFRPLQJ VDWLVILHG ZLWK WKH
FLUFXPVWDQFHWKH\DUHXVHGWRDQG´ULYDOU\µIRUWKHWHQGHQF\RISHRSOH
WR EDVH WKHLU VDWLVIDFWLRQ RQ WKHLU FLUFXPVWDQFHV UHODWLYH WR RWKHUV
/D\DUG E  %\ WKH VDPH WRNHQ WKHUH DUH SHUVRQV ZKR DUH
SHUPDQHQWO\ KDSS\ RU XQKDSS\ LQ FRQWUDGLFWLRQ WR WKH LGHD RI
DGDSWDWLRQ ,W LV DOVR FOHDU WKDW DEVROXWH FRQGLWLRQV FDQ KDYH D YHU\
VWURQJ HIIHFW RQ ZHOOEHLQJ ² DW WKH LQWHUQDWLRQDO OHYHO WKHUH LV D
FRUUHODWLRQ EHWZHHQ PHDVXUHG KDSSLQHVV DQG LQFRPH SHU FDSLWD
(FRQRPLF FRQGLWLRQV LQ SRYHUW\ VWULFNHQ QDWLRQV GUDVWLFDOO\ UHGXFH
KDSSLQHVV 9HHQKRYHQ 

/,)(6$7,6)$&7,21$1':(//%(,1*
7KH UHODWLRQ EHWZHHQ OLIH VDWLVIDFWLRQ DQG ZHOOEHLQJ LV IDU
ORRVHU DQG IDU PRUH FRPSOLFDWHG WKDQ SHRSOH WHQG WR VXSSRVH /LIH
VDWLVIDFWLRQ LV LQKHUHQWO\ LOOVXLWHG WR VHUYH DV D SUR[\ IRU ZHOOEHLQJ
IRULWLVQRWVXSSRVHGWRPLUURUZHOOEHLQJ1RWHYHQURXJKO\,WLVQRW
PHUHO\DQDVVHVVPHQWRIZHOIDUHEXWDQH[SUHVVLRQRIWKHLQGLYLGXDO·V
VWDQFH WRZDUG DQG UHVSRQVH WR KHU OLIH $V VXFK LW LV VXEMHFW WR

60
HWKLFDO QRUPV WKDW KDYH QRWKLQJ WR GR ZLWK ZHOOEHLQJ $QG EHFDXVH
HDFKRIXVFDQUHDVRQDEO\DQGDXWKHQWLFDOO\WDNHDYDULHW\RIVWDQFHV
WRZDUGRXUOLYHVDQGUHVSRQGWRRXUOLYHVLQDZLGHUDQJHRIZD\VRXU
OLIH VDWLVIDFWLRQ DWWLWXGHV DUH VXEVWDQWLDOO\ DUELWUDU\ )RU PRVW RI XV
WKH VWDQFH ZH KDSSHQ WR WDNH DW DQ\ JLYHQ PRPHQW LV QR PRUH
DXWKRULWDWLYH WKDQ DQ\ RI D UDQJH RI DOWHUQDWLYHV 6R QRW RQO\ GR OLIH
VDWLVIDFWLRQDWWLWXGHVUHIOHFWPDWWHUVRWKHUWKDQSHUVRQDOZHOIDUHWKH\
QHHGQRWEHDUDQ\GLVFHUQLEOHUHODWLRQVKLSWRZHOOEHLQJDWDOO3RVVLEO\
RQH FRXOG UHDVRQDEO\ JR WKURXJK OLIH EHLQJ VDWLVILHG DW VRPH WLPHV
DQG GLVVDWLVILHG DW RWKHUV ZLWKRXW DQ\ FOHDU SDWWHUQ UHODWLQJ WKH
DWWLWXGHV WR RQH·V DFWXDO ZHOIDUH 7KHVH DUJXPHQWV LQ QR ZD\
SUHVXSSRVH DQ REMHFWLYLVW FRQFHSWLRQ RI ZHOOEHLQJ WKH\ DUH SHUIHFWO\
FRPSDWLEOH ZLWK TXLWH VWURQJ IRUPV RI VXEMHFWLYLVP 8QOHVV WKDW LV
VRPHRQHZDQWV WR GHIHQG D W\SH RI ´VXEMHFWLYLVPµ DFFRUGLQJ WRZKLFK
ZHOOEHLQJUHODWHVRQO\DUELWUDULO\DQGYHU\ZHDNO\WRKRZSHRSOH·VOLYHV
DUHJRLQJUHODWLYHWRWKHLURZQSULRULWLHVFDQFRQIOLFWGUDPDWLFDOO\ZLWK
DJHQWV·RZQDVVHVVPHQWVRIWKHLUZHOOEHLQJDQGFDQIOXFWXDWHZLOGO\
IURP RQH PRPHQW WR WKH QH[W ZLWKRXW DQ\ VLJQLILFDQW FKDQJH LQ WKH
LQGLYLGXDO·V FRQGLWLRQ ,W PD\ EH REMHFWHG 5HIOHFWLQJ RQ RXU OLYHV LQ
YDULHGZD\V KHOSV NHHS XV EDODQFHG LW KHOSV XV WRNHHS WKLQJVZHOO
LQ SHUVSHFWLYH 7R FRPPLW ILUPO\ WR D SDUWLFXODU VWDQFH VHHPV
GRJPDWLF %HFDXVH LWV FRQQHFWLRQ WR ZHOOEHLQJ LV VR WHQXRXV OLIH
VDWLVIDFWLRQ ODFNV WKH NLQG RI VLJQLILFDQFH WKDW KDSSLQHVV DSSHDUV WR
KDYHDQGLQGHHGVHHPVPXFKOHVVLPSRUWDQW:KLOHPRVWSHRSOHZLOO
JUDQW WKDW KDSSLQHVV FDQ GLYHUJH VXEVWDQWLDOO\ IURP ZHOOEHLQJ ZH
WHQG WR H[SHFW PDMRU GLYHUJHQFH RQO\ LQ ´SUREOHPµ FDVHV LQYROYLQJ
SURQRXQFHG LJQRUDQFH PDQLSXODWLRQ RU H[WUHPH DGDSWDWLRQ HJ
KDSS\ VODYH FDVHV  7KH WURXEOH ZLWK OLIH VDWLVIDFWLRQ LV WKDW UDGLFDO
GLYHUJHQFHLVPRUHRUOHVVVXSSRVHGWRKDSSHQZHVKRXOGH[SHFWLWLQ
D ZLGH UDQJH RI SHUIHFWO\ RUGLQDU\ DQG XQSUREOHPDWLF FDVHV :H
VKRXOG QRW H[SHFW LW WR IXQFWLRQ DV D SUR[\ IRU ZHOOEHLQJ OLNH
KDSSLQHVV VHHPV WR ,QGHHG OLIH VDWLVIDFWLRQ KDV D YROXQWDU\ DVSHFW
WKDWPDNHVLWGXELRXVFDQGLGDWHIRUDPDMRUOLIHJRDO1RZVRPHPD\

61
REMHFW WKDW LVVXHV FRQFHUQLQJ SHUVSHFWLYHV DQG QRUPV GRQ·W
QHFHVVDULO\ GULYH D ZHGJH EHWZHHQ OLIH VDWLVIDFWLRQ DQG ZHOOEHLQJ
WKRVH ZKR FRXQW WKHLU EOHVVLQJV GRQ·W MXVW UHSRUW KLJKHU OLIH
VDWLVIDFWLRQ WKH\ UHDOO\ DUH EHWWHU RII 7R VRPH H[WHQW WKLV LV VXUHO\
WUXH $W WKH YHU\ OHDVW EHLQJ VDWLVILHG ZLWK RXU OLYHV FDQ PDNH WKHP
PRUHSOHDVDQWDQGWHPSHUWKHIRUFHVRIGLVFRQWHQW0RUHRYHUZHPD\
ILQG YDOXH MXVW LQ WKH IDFW RI DSSUHFLDWLQJ WKH JRRG LQ RXU OLYHV LW LV
JRRGQRWMXVWWRKDYHJRRGWKLQJVLQRXUOLYHVDQGNQRZDERXWWKHP
EXWDOVRWRDSSUHFLDWHWKHP
&RQVLGHUKRZVDGLWFDQEHZKHQDSHUVRQRIJUHDWWDOHQWIDLOVXWWHUO\
WRDSSUHFLDWHKHUPHULWVHYHQLIDWVRPHOHYHOVKHNQRZVDERXWWKHP 
6LPLODUO\ WKHUH LV D FRQQHFWLRQ EHWZHHQ OLIH VDWLVIDFWLRQ DQG VHOI
HVWHHPSDUWLFXODUO\LQVRIDUDVZHIHHOUHVSRQVLEOHIRUWKHZD\RXUOLYHV
JRRUWRWKHH[WHQWWKDWRXULGHQWLWLHVDUHOLWHUDOO\FRQVWLWXWHGLQSDUW
E\RXUOLIHKLVWRULHV6XFKFRQVLGHUDWLRQVFDQPDNHLWVHHPOLNHDNLQG
RIVHOIUHSXGLDWLRQWREHGLVVDWLVILHGZLWKRQH·VOLIHDQGDNLQGRIVHOI
DIILUPDWLRQWREHVDWLVILHG 
'(7(50,1$172)/,)(6$7,6)$&7,21
7KH DLP RI FUHDWLQJ JUHDWHU KDSSLQHVV IRU WKH JUHDWHU QXPEHU
UHTXLUHV DQ XQGHUVWDQGLQJ RI WKH GHWHUPLQDQWV RI OLIHVDWLVIDFWLRQ 6R
IDU WKH GHWHUPLQDQWV RI OLIHVDWLVIDFWLRQ DUH RQO\ GLPO\ XQGHUVWRRG
6WLOO LW LV FOHDU WKDW WKH PDWWHU LV YHU\ FRPSOH[ 9DULRXV OHYHOV RI
KXPDQ IXQFWLRQLQJ DUH LQYROYHG FROOHFWLYH DFWLRQ DQG LQGLYLGXDO
EHKDYLRU VLPSOH VHQVRU\ H[SHULHQFHV DQG KLJKHU FRJQLWLRQ VWDEOH
FKDUDFWHULVWLFV RI WKH LQGLYLGXDO DQG KLV HQYLURQPHQW DV ZHOO DV
FKDQFHIDFWRUV
3266,%,/,7<2)*5($7(5/,)(6$7,6)$&7,21
0XFK RI WKH UHVHDUFK RQ GHWHUPLQDQWV RI OLIHVDWLVIDFWLRQ LV
SURPSWHGE\WKHKRSHRIILQGLQJZD\VWRFUHDWHJUHDWHUKDSSLQHVVIRUD
JUHDWHUQXPEHU+RZHYHUWKHVHDUFKFRXOGDOVROHDGWRWKHFRQFOXVLRQ
WKDW WKLV KRSH LV IDOVH )RU LQVWDQFH IXUWKHU UHVHDUFK PD\ FRQILUP
WKHRULHV RI VDWLVIDFWLRQ ZKLFK LPSO\ WKDW WKH LPSURYHPHQW LQ OLYLQJ
FRQGLWLRQV GRHV QRW UHGXFH GLVFRQWHQW 2QH VXFK WKHRU\ LV WKDW OLIH

62
VDWLVIDFWLRQLVUHODWLYH$QRWKHULVWKHWKHRU\WKDWOLIHVDWLVIDFWLRQLVD
VWDEOHWUDLW

(9$/8$7,212)/,)(6$7,6)$&7,21
:KDW JRHV RQ LQVLGH D SHUVRQ·V KHDGZKHQ KH RU VKH HYDOXDWHV
OLIH" 6SHFXODWLRQ RQ VXFK PDWWHUVZDV D PDMRU WKHPH LQ WKH VWXG\ RI
KDSSLQHVV E\ WKH HDUO\ SKLORVRSKHUV 7KLV LVVXH KDV UHFHLYHG D
FRQVLGHUDEOH DPRXQW RI UHQHZHG LQWHUHVW GXULQJ WKH SUHVHQW FHQWXU\
,WLVQRWMXVWFXULRVLW\DERXW
WKH LQVLGH RI WKH ¶EODFN ER[· ZKLFK KDV OHG WR UHQHZHG LQWHUHVW EXW
UDWKHU WKH IDUUHDFKLQJ FRQVHTXHQFHV ZKLFK IROORZ IURP WKH GLIIHUHQW
SHUVSHFWLYHV RQ WKH SRVVLELOLW\ RI FUHDWLQJ JUHDWHU KDSSLQHVV IRU D
JUHDWHU QXPEHU RI SHRSOH WR EH GLVFXVVHG LQ WKH QH[W VHFWLRQ 
&DOFXOXV RU LQIHUHQFH"  8WLOLWDULDQ SKLORVRSKHUV VSRNH RI KDSSLQHVV
DVWKH¶VXPRISOHDVXUHVDQGSDLQV·HVWDEOLVKHGLQD¶PHQWDOFDOFXOXV·
7KLV YLHZ RQ WKH HYDOXDWLRQ SURFHVV LV VWLOO GRPLQDQW WRGD\ ,W LV
EHOLHYHG WKDW OLIHVDWLVIDFWLRQ LV DVVHVVHG LQ D VLPLODU ZD\ WR
DFFRXQWDQWV FDOFXODWH SURILW :H ZRXOG FRXQW RXU EOHVVLQJV DQG
VXIIHULQJVDQGWKHQVWULNHDEDODQFH7KHMXGJPHQWLVWKHQD¶ERWWRP
XS· SURFHVV LQ ZKLFK DSSUDLVDOV IURP YDULRXV DVSHFWV RI OLIH DUH
FRPELQHG LQWR DQ RYHUDOO MXGJPHQW )ROORZLQJ WKLV OLQH $QGUHZV DQG
:LWK\   VXJJHVWHG WKDW VDWLVIDFWLRQ ZLWK OLIHDVDZKROH LV
FDOFXODWHG
RQWKHEDVLVRIVDWLVIDFWLRQVZLWKYDULRXVDVSHFWVRIOLIH,QWKLVYLHZ
ZH ILUVW HYDOXDWH GRPDLQV RI OLIH VXFK DV RXU MRE DQG PDUULDJH E\
FRPSDULQJ WKH UHDOLW\ RI OLIH ZLWK YDULRXV VWDQGDUGV RI VXFFHVV 2QO\
WKHQZRXOGZHFRPSXWHDQDYHUDJHZHLJKWHGE\SHUFHLYHGLPSRUWDQFH
RI GRPDLQV DQG VWDQGDUGV $QGUHZV DQG :LWK\ GHPRQVWUDWHG KLJK
FRUUHODWLRQV EHWZHHQ VDWLVIDFWLRQ ZLWK OLIHDVDZKROH DQG DSSUDLVDOV
RI YDULRXV DVSHFWV RI OLIH EXW IRXQG QR HYLGHQFH IRU WKH SUHVXPHG
ZHLJKLQJ0LFKDORV
  
0XOWLSOH'LVFUHSDQF\7KHRU\DOVRGHSLFWVOLIHVDWLVIDFWLRQDVWKH
EDODQFH RI YDULRXV VXEHYDOXDWLRQV 6XEHYDOXDWLRQV DUH DVVHVVPHQWV

63
RI WKH GLVFUHSDQF\ EHWZHHQ SHUFHSWLRQV RI KRZ RQH·V OLIH LV ZLWK
QRWLRQV RI KRZ RQH ZRXOG OLNH LW WR EH 7KH ILYH PDLQ VWDQGDUGV IRU
FRPSDULVRQ DUHZKDW RQH ¶ZDQWV·ZKDW RQH ¶KDG· HDUOLHU LQOLIHZKDW
RQH¶H[SHFWHG·WRKDYHZKDWRQHWKLQNV¶RWKHUSHRSOH·KDYHDQGZKDW
RQHWKLQNVLV¶GHVHUYHG·
0LFKDORV SURYLGHV DPSOH HYLGHQFH WKDW VPDOO GLVFUHSDQFLHV DUH
DFFRPSDQLHG E\ KLJK VDWLVIDFWLRQ ZLWK OLIHDVDZKROH 0XOWLSOH
UHJUHVVLRQDQDO\VLVVKRZHGWKDWOLIHVDWLVIDFWLRQLVSULPDULO\DIXQFWLRQ
RI WKH SHUFHLYHG GLVFUHSDQF\ EHWZHHQ UHDOLW\ DQG ¶ZDQWV· 7KRXJK
VDWLVIDFWLRQ ZLWK OLIHDVDZKROH LV VWDWLVWLFDOO\ FRUUHODWHG ZLWK
DSSUDLVDOV RI YDULRXV DVSHFWV RI OLIH LW KDV QRW EHHQ HVWDEOLVKHG WKDW
OLIHVDWLVIDFWLRQ LV FDXVDOO\ GHWHUPLQHG E\ WKHVH VXEHYDOXDWLRQV 7KH
FRUUHODWLRQFRXOGDOVREHGXHWR¶WRSGRZQ·HIIHFWV)RULQVWDQFHZKHQ
DVVHVVLQJRQH·VMREVDWLVIDFWLRQDSHUVRQPD\UHDVRQ
´, DP JHQHUDOO\ KDSS\ VR DSSDUHQWO\ , OLNH P\ MREµ 3DQHO
DQDO\VLV KDV GHPRQVWUDWHG VWURQJ HIIHFWV RI WKLV NLQG $FWXDOO\ WKH
HIIHFW RI OLIHVDWLVIDFWLRQ RQ WKH SHUFHLYHG GLVFUHSDQF\ EHWZHHQ ZKDW
RQHKDVDVDJDLQVWZKDWRQHZDQWVLVJUHDWHUWKDQWKHHIIHFWRQWKH
UHVSHFWLYH OLIH VDWLVIDFWLRQ HYDOXDWLRQ IRU VRPH GRPDLQV +HDG\ DQG
9HHQKRYHQ   7KHVH ILQGLQJV KDYH EHHQ FULWLFL]HG RQ
PHWKRGRORJLFDOJURXQGVE\6FKHUSHQ]HHODQG6DULV  
,QIHUHQFH RQ WKH EDVLV RI IHHOLQJ $ ULYDO WKHRU\ LV WKDW
HYDOXDWLRQVRIOLIHGUDZRQFXHVWKDWSURYLGHLQGLFDWLRQVRIWKHTXDOLW\
RI OLIH DV D ZKROH $Q LQWHUQDO FXH RI WKLV NLQG LV KRZ ZHOO RQH
JHQHUDOO\ IHHOV ,I SOHDVDQW IHHOLQJV GRPLQDWH WKHQ LW LV DVVXPHG WKDW
OLIHFDQ
WEHEDG7KLVFRXOGEHFDOOHG¶DIIHFWLYHLQIHUHQFH·$QH[WHUQDO
FXHLVKRZVDWLVILHGRWKHUSHRSOHWKLQNRQHLV7KLVLVFDOOHG¶UHIOHFWHG
DSSUDLVDO·7KHDYDLODEOHHYLGHQFHVXJJHVWVWKDWLQWHUQDODIIHFWLYHFXHV
DUH IDU PRUH LPSRUWDQW WKDQ H[WHUQDO VRFLDO RQHV /LIHVDWLVIDFWLRQ LV
PXFKPRUHUHODWHGWRPDWWHUVRIPRRGWKDQWRUHSXWDWLRQ5HSRUWVRI
GDLO\ IHHOLQJV FRUUHVSRQG FORVHO\ WR VDWLVIDFWLRQ ZLWK OLIHDVDZKROH
ZKHUHDV SHHUUDWLQJV RI OLIHVDWLVIDFWLRQ FRUUHODWH RQO\ PRGHVWO\ ZLWK
VHOIUDWLQJV ,Q DVVHVVLQJ KRZ ZH JHQHUDOO\ IHHO ZH VHHP WR IRFXV RQ

64
WKH UHODWLYH IUHTXHQF\ RI SRVLWLYH DQG QHJDWLYH HIIHFWV UDWKHU WKDQ RQ
WKHUHPHPEHUHGLQWHQVLW\RIMR\DQGVXIIHULQJ 'LHQHUHWDO 

'LIIHUHQFHV LQ HYDOXDWLQJ OLIHDVDZKROH DQG OLIHGRPDLQV 7KH
HYDOXDWLRQSURFHVV LV QRW LGHQWLFDO IRU DOO REMHFWV *OREDO LQIHUHQFH LV
WKH UXOH LQ HYDOXDWLRQV RI OLIHDVDZKROH DQG SLHFHPHDO FDOFXODWLRQV
PRVW FRPPRQ LQ HYDOXDWLRQV RI GRPDLQV RI OLIH 6FKZDU] DQG 6WUDFN
  VKRZHG WKDW HYDOXDWLRQV RI OLIHDVDZKROH IRFXV RQ KRZ RQH
JHQHUDOO\IHHOV7KLVIDFLOLWDWHVWKHMXGJPHQWDOWDVN0RVWSHRSOHNQRZ
IDLUO\ ZHOO KRZ WKH\ JHQHUDOO\ IHHO 7KH DOWHUQDWLYH RI ¶FDOFXODWLQJ· OLIH
VDWLVIDFWLRQLVPRUHGLIILFXOWDQGWLPHFRQVXPLQJ,WUHTXLUHVVHOHFWLRQ
RIVWDQGDUGVDVVHVVPHQWVRIVXFFHVVDQGLQWHJUDWLRQRIWKHDSSUDLVDOV
LQWR DQ RYHUDOO MXGJPHQW 1RW RQO\ GRHV WKLV LQYROYH PRUH PHQWDO
RSHUDWLRQV EXW LW DOVR HQWDLOV PDQ\ DUELWUDU\ GHFLVLRQV 6WLOO SHRSOH
VRPHWLPHVFKRRVHWRIROORZWKLVPRUHGLIILFXOWURDG$FRQGLWLRQZKLFK
HQFRXUDJHV SHRSOH WR PDNH WKLV FKRLFH LV WKH SUHVHQFH RI DPELJXLW\
ZKHQ WU\LQJ WR GHILQH RQH·V W\SLFDO PRRG IRU LQVWDQFH D VWDWH RI
GHSUHVVLRQ PD\ QRW ILW RQH
V LGHD RI KRZ RQH JHQHUDOO\ IHHOV $QRWKHU
IDFWRU WKDW HQFRXUDJHV WKH FDOFXODWLYH DSSURDFK PD\ EH WKH
DYDLODELOLW\ RI VDOLHQW LQIRUPDWLRQ IRU WKH SXUSRVHV RI FRPSDULVRQ
VXFK DV WKH HDUOLHU PHQWLRQHG FRQIURQWDWLRQ ZLWK D SHUVRQ LQ D
ZKHHOFKDLU (YDOXDWLRQV RI VSHFLILF DVSHFWV RI OLIH DUH KDUG WR GHULYH
IURP HVWLPDWHV RI JHQHUDO IHHOLQJV $IIHFW LV OHVV LQIRUPDWLYH LQ WKLV
FDVH 2QH FDQ EH VDWLVILHG ZLWK RQH·V MRE EXW VWLOO IHHO JHQHUDOO\
GLVVDWLVILHGEHFDXVHRIDEDGPDUULDJHDQGSRRUKHDOWK2QWKHRWKHU
KDQG FDOFXODWLQJ LV OHVV GLIILFXOW ZKHQ VSHFLILF OLIH GRPDLQV DUH
FRQFHUQHG 'RPDLQV RI OLIH DUH HDVLHU WR RYHUVHH WKDQ OLIHDVDZKROH
DQGVWDQGDUGVRIVXFFHVVDUHRIWHQPRUHHYLGHQW


65

You might also like