1,&$5$*8$ %$&.

)520 7+( '($'"

$Q DQWKURSRORJLFDO YLHZ RI WKH 6DQGLQLVWD PRYHPHQW
LQ WKH HDUO\ VW &HQWXU\

-RKDQQHV :LOP
LL

1LFDUDJXD %DFN IURP WKH 'HDG"

$Q DQWKURSRORJLFDO YLHZ RI WKH 6DQGLQLVWD PRYHPHQW LQ WKH HDUO\ VW &HQWXU\
DXWKRU -RKDQQHV :LOP
HGLWHG E\ 6XVDQ %DOO $QJHOD /LHEHU DQG 6KDLQH 3DUNHU
GUDIWV FRPPHQWHG E\ 'U 9LFWRULD *RGGDUG 'U &DVH\ +LJK 3KLO +XJKHV 0DUL\D ,YDQFKHYD
'U 6WHSKHQ 1XJHQW DQG /LQXV 6WURWKPDQQ

&RS\ULJKW ‹² -RKDQQHV :LOP

3XEOLVKHG E\ 1HZ /HIW 1RWHV
7XFVRQ $= DQG 2VOR 1RUZD\
?iiT,ffrrrXM2rH27iMQi2bXQ`;

<RX PD\ FRS\ GLVWULEXWH DQG DOVR VHOO WKLV YHUVLRQ RI WKH ERRN DV RIWHQ DV \RX ZDQW DV ORQJ DV \RX GR
QRW UHPRYH WKLV FRS\ULJKW QRWLFH QRU WKH DXWKRU·V QDPH 7KH LQWHUYLHZV DQG LQGLYLGXDOV TXRWHV LQ
WKLV ERRN ZHUH DOO RULJLQDOO\ LQ 6SDQLVK DQG KDYH EHHQ WUDQVODWHG WR (QJOLVK E\ WKH DXWKRU

7KH FRS\ULJKW KROGHUV RI WKH LQFOXGHG SKRWRVSLFWXUHV DUH WKH LQGLYLGXDOV DQG RUJDQL]DWLRQV PHQ
WLRQHG LQ WKH FDSWLRQ 8VDJH ULJKWV IRU SXUSRVHV WKDW JR EH\RQG WKH UHSURGXFWLRQ RI WKLV ERRN HLWKHU
LQ LWV HQWLUHW\ RU RI HQWLUH FKDSWHUV PXVW EH REWDLQHG LQGLYLGXDOO\ IURP WKH PHQWLRQHG FRS\ULJKW
KROGHUV :KHQ QR FRS\ULJKW KROGHU LV PHQWLRQHG LQ WKH FDSWLRQ WKH SKRWRJUDSKHU ZDV WKH DXWKRU
7KH SKRWRV WDNHQ E\ WKH DXWKRU FDQ EH XVHG IRU RWKHU SXUSRVHV ZLWKRXW SULRU FRQVHQW DV ORQJ DV WKH
SKRWRJUDSKHU LV PHQWLRQHG LQ DOO IRUPV RI SXEOLFDWLRQ ZKHUH WKH SKRWRV DSSHDU )RU KLJK TXDOLW\
YHUVLRQV SOHDVH HPDLO SKRWRV#QHZOHIWQRWHVRUJ

/LEUDU\ RI &RQJUHVV &RQWURO 1XPEHU 

3XEOLVKHU·V &DWDORJLQJLQ3XEOLFDWLRQ GDWD

:LOP -RKDQQHV 

1LFDUDJXD EDFN IURP WKH GHDG"  DQ DQWKURSRORJLFDO YLHZ RI WKH 6DQGLQLVWD PRYHPHQW LQ WKH
HDUO\ VW FHQWXU\  -RKDQQHV :LOP
[[[LY  S  LOO PDS   FP
,QFOXGHV ELEOLRJUDSKLFDO UHIHUHQFHV S ² DQG LQGH[
,6%1  SEN
,6%1  SEN HXURSH
,6%1  HERRN
 )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO  3ROLWLFDO SDUWLFLSDWLRQ²1LFDUDJXD 
1LFDUDJXD²6RFLDO FRQGLWLRQV²  1LFDUDJXD²(FRQRPLF FRQGLWLRQV² 
1LFDUDJXD²+LVWRU\  5HYROXWLRQDULHV²1LFDUDJXD²+LVWRU\²WK FHQWXU\ , 7LWOH
): 
²GF 
 LLL

:K\ WKLV ERRN"

,Q WKH V 1LFDUDJXD ZDV DOPRVW FRQVWDQWO\ LQ WKH QHZV $ UHYROXWLRQ LQ
 FDWDSXOWHG WKH OHIWLVW )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 LQWR
SRZHU DQG WKH 3UHVLGHQW RI WKH 8QLWHG 6WDWHV 5RQDOG 5HDJDQ ILQDQFHG
D EORRG\ FRQWUDUHYROXWLRQ IRU PRVW RI WKH GHFDGH 7KH 6DQGLQLVWDV ORVW
QDWLRQDO HOHFWLRQV LQ  DQG WKDW HQGHG WKH ODVW H[SHULPHQW RI VRFLDO
LVP RQ WKH $PHULFDQ PDLQODQG /LWWOH PRUH ZDV KHDUG IURP WKH FHQWUDO
$PHULFDQ 5HSXEOLF LQ WKH IROORZLQJ \HDUV
7KH 6DQGLQLVWDV UHWXUQHG WR SRZHU LQ  EXW VXUSULVLQJO\ OLWWOH KDV
EHHQ KHDUG DERXW WKHP ,Q WKH IHZ FDVHV WKH PHGLD KDV EURXJKW DWWHQWLRQ
WR LW LW KDV IRFXVHG RQ FHUWDLQ DVSHFWV RI VRPH SROLFLHV RI WKH QHZ )6/1
JRYHUQPHQW VXFK DV DERUWLRQ ULJKWV :KDW WKHVH SRUWUD\DOV DOO KDYH LQ
FRPPRQ LV WKDW WKH\ VD\ WKH FXUUHQW JRYHUQPHQW GLYHUJHV IURP WKH SUR
JUDP RI UHYROXWLRQDU\ WUDQVIRUPDWLRQ RI WKH V 1RRQH KDV ORRNHG DW
FXUUHQW 6DQGLQLVPR LQ LWV WRWDOLW\ DQG KRZ WKH FRXQWU\ LV SURJUHVVLQJ
,Q WKLV ERRN , WU\ WR VKRZ ZKDW LW PHDQV WR EH SDUW RI WKH 6DQGLQLVWD
PRYHPHQW LQ WKH VW FHQWXU\ 7KLV LQFOXGHV FRPPRQ SRLQWV RI UHIHUHQFH
DOO W\SHV RI 6DQGLQLVWDV VKDUH DQG KRZ WKH ZHE RI GLIIHUHQW W\SHV RI 6DQ
GLQLVWDV LV VWUXFWXUHG LQ D ZD\ WKDW HPSKDVL]HV SRSXODU SDUWLFLSDWLRQ RI
SHRSOH ZLWK YHU\ GLIIHUHQW EDFNJURXQGV DQG SHUVSHFWLYHV
7KH 6DQGLQLVWD PRYHPHQW SXWV D SDUWLFXODUO\ VWURQJ HPSKDVLV RQ 1L
FDUDJXD DQG WKH PRYHPHQW·V RZQ KLVWRU\ RYHU WKH ODVW  \HDUV ,Q WKH
V WKH\ UHFHLYHG PLOLWDU\ DQG HFRQRPLF VXSSRUW IURP &XED DQG WKH
6RYLHW 8QLRQ DQG QRZ 9HQH]XHOD SOD\V WKDW UROH 6DQGLQLVPR KDV FKDQJHG
ZLWK WKH FKDQJH RI DOOLDQFHV LQ ZD\V WKDW 1LFDUDJXDQV VHOGRP UHFRJQL]H
)RUHLJQHUV ZULWLQJ DERXW 1LFDUDJXD LQ WKH V ORRNHG HQWKXVLDVWL
FDOO\ DW WKH UHYROXWLRQDU\ WUDQVIRUPDWLRQ ZKLOH LQ WKH V HYHU\ERG\
MXVW VDZ GHFD\ DQG KRZ WKH 6DQGLQLVWD PRYHPHQW IUDJPHQWHG , VKRZ
WKDW PRVW ORRNLQJ DW 1LFDUDJXD LQ WKH V LQFRUUHFWO\ DVVXPHG WKDW WKH
6DQGLQLVWD PRYHPHQW ZRXOG GLVLQWHJUDWH FRPSOHWHO\ LQWR LGHQWLW\ SROL
WLFV ZKLOH UHDOO\ WKHLU ZRUN WXUQHG PRUH FODQGHVWLQH LQ SUHSDUDWLRQ IRU
DQRWKHU WDNHRYHU RI WKH VWDWH
7KH 6DQGLQLVWD PRYHPHQW LQFOXGHV SHRSOH ZKR EHOLHYH LQ PDQ\ GLIIHU
HQW LGHRORJLHV QDWLRQDOLVP VRFLDO UHIRUPLVP 0DU[LVP DQG DQDUFKLVP 
6DQGLQLVPR GLG LQ WKH SDVW LQFOXGH DQG VWLOO LQFOXGHV PDQ\ RI WKH LQGLYLG
XDO DVSHFWV RI LGHQWLW\ SROLWLFV LQ D ZD\ WKDW PD\ KDYH OHG VRPH DQWKURSRO
RJLVWV WR EHOLHYH LW ZDV WKH VROH FHQWHU SRLQW RI 6DQGLQLVWDV· HQJDJHPHQW
LY

ZLWK SROLWLFV , ORRN DW KRZ WKH FXUUHQW XQLW\ RI WKH PRYHPHQW GHSHQGV
RQ D OLPLWHG QXPEHU RI FRPPRQ UHIHUHQFH SRLQWV LQ WKH ODVW  \HDUV
RI 1LFDUDJXDQ KLVWRU\ ZKLFK DUH LQWHUSUHWHG YHU\ GLIIHUHQWO\ E\ RWKHU
JURXSV EXW ZKLFK DW DOO WLPHV HPSKDVL]H WKH SDUW RI 1LFDUDJXDQV LQ LQWHU
QDWLRQDO UHODWLRQV $OWKRXJK /LEHUDOV DQG 6DQGLQLVWDV ERWK KDYH JURXSV
RI VXSSRUWHUV WKH PRGHOV RI SROLWLFDO SDUWLFLSDWLRQ DQG KRZ SROLWLFDO VXF
FHVV JHWV PHDVXUHG IRU WKH WZR JURXSV LV IXQGDPHQWDOO\ GLIIHUHQW 5HODWHG
WR WKH LQWHUQDO LGHRORJLFDO GLIIHUHQFH ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW LV
DQ LQIRUPDO VWUXFWXUH RI GLIIHUHQW JURXSV RI 6DQGLQLVWDV ZKR HQJDJH LQ
FRQFUHWH DFWLRQV WR FKDQJH VRFLHW\ 2IWHQWLPHV WKLV ZRUNV ZLWKRXW SURYRN
LQJ FRQIOLFW EHWZHHQ GLIIHUHQW JURXSV RI 6DQGLQLVWDV DQG LV WKHUHIRUH QRW
LPPHGLDWHO\ QRWLFHDEOH WR WKH RXWVLGH REVHUYHU
 "MLRCLRQ

$EVWUDFW LLL

,QWURGXFWLRQ L[
2Q 1LFDUDJXD                            L[
+RZ , HQGHG XS LQ 1LFDUDJXD                    [LL
:KDW LV VR LQWHUHVWLQJ DERXW 1LFDUDJXD"              [YL
*HWWLQJ LQ FRQWDFW ZLWK 1LFDUDJXDQV                [YLLL
:KHUH , VWD\HG                           [[L
0\ LQLWLDO EOXQGHUV                         [[LL
6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROXWLRQDU\ H[SH
ULHQFH                             [[LY
5HYROXWLRQ VWXGLHV                      [[Y
3RVW6DQGLQLVWD VWXGLHV                    [[L[
6DQGLQLVWD ,, VWXGLHV                      [[[LL

 5HFHQW SROLWLFDO KLVWRU\ RI 1LFDUDJXD DQG WKH 6DQGLQLVWD PRYH

PHQW 
%HIRUH                              
$XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR                 
6RPR]D                               
7KH RUJDQL]DWLRQ RI UHVLVWDQFH DJDLQVW 6RPR]D          
7KH 6DQGLQLVWD \HDUV ²                    
)RUHLJQ ,QYROYHPHQW                     
7KH )6/1 VWUXFWXUH                      
3RSXODU SDUWLFLSDWLRQ DQG GLUHFW GHPRFUDF\         
7KH )6/1 HOHFWRUDO GHIHDW LQ                   

Y
YL &RQWHQWV

7KH )6/1 DV DQ RSSRVLWLRQ IRUFH                  

7KH )6/1 HOHFWRUDO YLFWRU\                   
6XEMHFWLYH DVSHFWV RI WKH KLVWRU\ DV LW LV SUHVHQWHG         

 7KH SROLWLFV RI KLVWRU\ 

:KDW SDUWV RI 1LFDUDJXDQ KLVWRU\ DUH LPSRUWDQW"         
3ROLWLFDO LGHQWLWLHV LQ 1LFDUDJXD                  
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 
)URP WKH V WR V                    
&DOGHUyQ 6DQGLQR                       
7KH 6RPR]D \HDUV                       
8QGHU WKH 6DQGLQLVWD LQ WKH V              
5HDVRQLQJ WKH HOHFWRUDO IDLOXUH LQ             
7KUHH QHROLEHUDO JRYHUQPHQWV                
*RYHUQLQJ ZLWKRXW D PDMRULW\                
3UREOHPV XQGHUVWDQGLQJ WKH GLVFXVVLRQ RI 1LFDUDJXDQ KLVWRU\  
&RQFOXGLQJ UHPDUNV                         

 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV 

'HYHORSPHQW WKHRULHV                        
0DLQVWUHDP PRGHUQL]DWLRQ GHYHORSPHQW WKHRULHV     
&RXQWHUKHJHPRQLF GHYHORSPHQW WKHRULHV         
1LFDUDJXDQ HFRQRPLF KLVWRU\                    
(FRQRPLF SROLFLHV EHWZHHQ =HOD\D /ySH] DQG WKH 6RPR]DV 
(FRQRPLF SROLFLHV XQGHU WKH 6RPR]DV            
(FRQRPLF UHDOLWLHV DQG SROLFLHV XQGHU WKH 6DQGLQLVWDV RI
WKH V                       
/LEHUDO HFRQRPLF SROLWLFV                   
1LFDUDJXDQ HFRQRPLFV GXULQJ WKH VHFRQG 6DQGLQLVWD JRYHUQPHQW 
3RSXODU LGHDV DERXW HFRQRPLF UHDOLWLHV DQG PRGHOV RI WKH SDVW  
7KH V                           
7KH V                           
7KH V²                        
7KH FXUUHQW 6DQGLQLVWD JRYHUQPHQW             
&RQFOXGLQJ UHPDUNV                         
&RQWHQWV YLL

 6KDSLQJ SROLWLFV 

7UDQVSRUW ZRUNHU VWULNH 0D\                 
7KH 056 SURWHVWV 0D\ ² 1RYHPEHU              
$ZDUG JLYHQ WR ODVW 0LQLVWHU RI (GXFDWLRQ RI (DVW *HUPDQ\ DQG
DOOLDQFH ZLWK +RQGXUDV  -XO\             
7KH *HRUJLD FRQIOLFW                         
/HyQ )6/1 FDQGLGDWH IRU PD\RU FODVKHG ZLWK SROLFH 6HSWHPEHU
                              
)6/1 ZRQ ORFDO HOHFWLRQV 1RYHPEHU              
3DUOLDPHQW VWRSSHG ZRUNLQJ 1RYHPEHU  ² )HEUXDU\   
0LOLWDU\ FRXS LQ +RQGXUDV -XQH                
 \HDUV RI UHYROXWLRQ DQG VRPH DGYDQFHV VXPPHU      
&RQFOXGLQJ UHPDUNV                         

 6DQGLQLVWD SURMHFWV RI FKDQJH 

7KH KLVWRULF VWUXFWXUH RI WKH )6/1                 
7KH SULQFLSOH RI DOOLDQFHV                   
7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\     
:D\V RI H[HUWLQJ SRZHU E\ LQGLYLGXDOV DQG JURXSV     
&RQFOXGLQJ UHPDUNV                         

 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH 

1LFDUDJXDQ SDUWLFXODULWLHV LQ WKH FXUUHQW JOREDO V\VWHP      
&RQQHFWLRQV WR D IRUPHU FHQWHU                   
7KH H[SHULHQFH LQ (DVW *HUPDQ\ LQ SHUVSHFWLYH       
'HSHQGHQFH RQ 5XVVLD"                       
&RQFOXGLQJ UHPDUNV                         

 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV 

$JH DV D GHILQLQJ IDFWRU                       
7KH OLWHUDF\ FDPSDLJQ FHOHEUDWLRQ              
7KH ODFN RI LGHRORJLFDO PRGHOV DPRQJ \RXQJHU 6DQGLQLVWDV 
/LWWOH IRFXV RQ WKHRUHWLFDO NQRZOHGJH DPRQJ RUJDQL]HG
6DQGLQLVWD \RXQJVWHUV                
7HUP UHGHILQLWLRQV                      
¶6HULRXVQHVV· DQG DFFHSWDQFH RI \RXQJHU 6DQGLQLVWDV    
&XUUHQW VWXGLHV RI SROLWLFDO WKHRU\              
3URIHVVLRQDOV DQG 6DQGLQLVPR                   
056 6DQGLQLVPR                          
YLLL &RQWHQWV

&RQFOXGLQJ UHPDUNV                         

&RQFOXVLRQ 
'HYHORSPHQWV VLQFH«                        
«DQG LQWR WKH IXWXUH                        
:KDW LV WR EH GRQH"                         

*ORVVDU\ 

%LEOLRJUDSK\ 

,QGH[ 
 (LRPMBSARGML
2Q 1LFDUDJXD

1LFDUDJXD LV VLWXDWHG LQ &HQWUDO $PHULFD EHWZHHQ +RQGXUDV DQG (O 6DO

YDGRU WR WKH QRUWK DQG &RVWD 5LFD WR WKH VRXWK DQG LV WKH ODUJHVW RI WKH ILYH
&HQWUDO $PHULFDQ UHSXEOLFV ,W H[WHQGV RYHU DQ DUHD RI URXJKO\ 
NP˓ ,WV FOLPDWH LV WURSLFDO WKRXJK VRPHZKDW GLYHUVH ZLWK UDLQIDOO UDQJLQJ
EHWZHHQ  DQG  PP DQQXDOO\ LQ GLIIHUHQW UHJLRQV ,WV VRLO LV YHU\
IHUWLOH DQG DPRQJ WKH FRXQWU\·V WRS DJULFXOWXUDO H[SRUWV DUH H[RWLF IUXLWV
PHDW ILVK FRIIHH WREDFFR DQG VXJDU FDQH 7D\ORU   7KH WRWDO SRSX
ODWLRQ LV  RI ZKLFK  OLYH LQ XUEDQ DUHDV 7KH PHGLDQ DJH RI
1LFDUDJXDQV LV  \HDUV -XO\  HVWLPDWH  ,Q  WKH SRSXODWLRQ ZDV
HVWLPDWHG DW  VR SRSXODWLRQ LQFUHDVH KDV EHHQ UDSLG ,W ZDV HVWL
PDWHG WKDW LQ  1LFDUDJXD ZDV WKH SRRUHVW FRXQWU\ LQ &HQWUDO $PHULFD
DQG WKH VHFRQG SRRUHVW FRXQWU\ LQ WKH $PHULFDV &,$ D :RUOG SRSXOD
WLRQ SURVSHFWV   1LFDUDJXD LV GLYLGHG LQWR  GHSDUWDPHQWRV PDLQO\
LQ ZHVWHUQ 1LFDUDJXD DQG WZR UHJLRQHV DXWyQRPDV RQ WKH HDVW FRDVW 7KH
GHSDUWDPHQWRV DQG UHJLRQHV DXWyQRPDV FRQWDLQ D WRWDO RI  PXQLFLSLRV
0XQLFLSLRV DQG UHJLRQHV DXWyQRPDV KDYH VHSDUDWH ORFDOO\HOHFWHG JRYHUQ
PHQWV EXW GHSDUWDPHQWRV GR QRW 7KH ERUGHUV DQG MXULVGLFWLRQV EHWZHHQ
WKH GLIIHUHQW UHJLRQV DQG JRYHUQPHQWV DUH QRW DOZD\V FRPSOHWHO\ FOHDU
$OWKRXJK GHSDUWDPHQWRV GR QRW SRVVHVV WKHLU RZQ JRYHUQPHQWV WKH\ DUH
XVHG DV DGPLQLVWUDWLYH XQLWV E\ WKH FHQWUDO VWDWH DQG 1LFDUDJXDQV RSHUDWH
DURXQG WKHP DV VLJQLILFDQW XQLWV 6RPH RI WKH SROLWLFDO SDUWLHV DOVR XVH
GHSDUWDPHQWRV DV RUJDQL]DWLRQDO XQLWV
:HVWHUQ 1LFDUDJXD LV DOPRVW H[FOXVLYHO\ 6SDQLVK VSHDNLQJ ZKLOH RQ
WKH HDVWHUQ $WODQWLF FRDVW VHYHUDO JURXSV VSHDN FUHROH ODQJXDJHV DQG (Q
JOLVK LQ DGGLWLRQ WR 6SDQLVK 7UDQVSRUWDWLRQ EHWZHHQ WKH FRDVWV LV QRW
YHU\ GHYHORSHG $ URDG EHWZHHQ 0DQDJXD LQ ZHVWHUQ 1LFDUDJXD DQG %OXH
ILHOGV WKH FDSLWDO RI WKH 5HJLyQ $XWyQRPD GHO $WOiQWLFR 6XU 5$$6 RQ WKH HDVW

L[
[
,Q WKH SRUW RI (O 5DPD SDVVHQJHUV VZLWFK IURP ERDW WR EXV RQ WKHLU ZD\ WR
ZHVWHUQ 1LFDUDJXD

FRDVW KDV EHHQ SODQQHG IRU GHFDGHV DQG XQGHU FRQVWUXFWLRQ IRU \HDUV )RU
QRZ WKH RQO\ ZD\ RI JRLQJ IURP RQH WR WKH RWKHU LV E\ WDNLQJ D EXV IURP
0DQDJXD WR (O 5DPD DQG WKHQ D ERDW IURP WKHUH WR %OXHILHOGV RU E\ IO\LQJ
GLUHFWO\ IURP 0DQDJXD WR %OXHILHOGV 7UDQVSRUWDWLRQ EHWZHHQ ZHVWHUQ
FLWLHV LV UHODWLYHO\ HDV\ ZLWK PDQ\ EXV OLQHV RI GLIIHUHQW VSHHGV RSHUDWLQJ
EHWZHHQ PDMRU FLWLHV DQG DW OHDVW RQH EXV OLQH UHDFKLQJ WR HYHU\ PDMRU
YLOODJH 7UDQVLW EHWZHHQ VHWWOHPHQWV RQ WKH HDVW FRDVW LV VWLOO FRQGXFWHG
H[FOXVLYHO\ E\ ERDW

0RVW 1LFDUDJXDQV OLYH LQ ZHVWHUQ 1LFDUDJXD ZKHUH DOO WKH ODUJHVW

FLWLHV OLH ,Q ZHVWHUQ 1LFDUDJXD WKHUH DUH QLQH FLWLHV ZLWK PRUH WKDQ 
LQKDELWDQWV WKH FDSLWDO 0DQDJXD SRS   /HyQ   0DVD\D
  &KLQDQGHJD   0DWDJDOSD   (VWHOt   *UD
QDGD   7LSLWDSD  DQG -LQRWHJD   7KH ODUJHVW FLW\ LQ
WKH UHJLRQHV DXWyQRPDV RQ WKH $WODQWLF FRDVW ZDV XQWLO  1XHYD *XLQHD
  ZKLFK LV FRQQHFWHG E\ URDG WR 0DQDJXD ,Q $SULO  3UHVLGHQW
-RVp 'DQLHO 2UWHJD 6DDYHGUD PRYHG WKUHH PXQLFLSLRV IURP WKH 5$$6 WR WKH
GHSDUWDPHQWR &KRQWDOHV E\ SUHVLGHQWLDO GHFUHH DUJXLQJ WKH\ KDG OLWWOH
FRQQHFWLRQ WR WKH UHVW RI WKH UHJLRQ FXOWXUDOO\ DQG WKDW LW ZDV RIWHQ GLIIL
FXOW IRU WKHVH PXQLFLSLRV· LQKDELWDQWV WR WUDYHO WR %OXHILHOGV 7KH WKUHH
PXQLFLSLRV WKDW ZHUH PRYHG WR &KRQWDOHV LQFOXGHG WKH WZR PRVW SRSXORXV
RI WKH 5$$6 1XHYD *XLQHD DQG (O 5DPD   OHDYLQJ %OXHILHOGV  

[L
[LL ,QWURGXFWLRQ

WKH ODUJHVW FLW\ LQ WKH 5$$6 DQG 6LXQD   LQ WKH 5HJLyQ $XWyQRPD GHO
$WOiQWLFR 1RUWH 5$$1  WKH PRVW SRSXORXV LQ WKH UHJLRQHV DXWyQRPDV 
HVWLPDWHV 6HUUDQR  0DUWtQH] DQG /HyQ  ²  %RUGHU FURVVLQJ
FKHFNSRLQWV DUH RSHUDWHG LQ WKH QRUWK HQWHULQJ LQWR +RQGXUDV DQG LQ WKH
VRXWK LQWR &RVWD 5LFD DQG WKH FRXQWU\ FDQ HDVLO\ EH FURVVHG QRUWK WR VRXWK
ZLWKLQ D GD\ RQ WKH 3DFLILF VLGH HYHQ ZKHQ WDNLQJ FKHDSHU DQG VORZHU
ORFDO EXVHV ,W LV OHVV FRPPRQ IRU 1LFDUDJXDQV WKDQ LW LV IRU WKHLU QRUWK
HUQ QHLJKERUV WR VHHN ZRUN LQ WKH 8QLWHG 6WDWHV DQG PRUH 1LFDUDJXDQV
PLJUDWH VRXWK WR &RVWD 5LFD  ZKHUH ZDJHV DUH FRQVLGHUDEO\ KLJKHU 0RVW
1LFDUDJXDQV EHOLHYH WKDW 1LFDUDJXD LV WKH VDIHVW FRXQWU\ LQ /DWLQ $PHULFD
DQG WKH\ DUH JHQHUDOO\ YHU\ SURXG RI WKLV

+RZ , HQGHG XS LQ 1LFDUDJXD

1LFDUDJXD VHUYHG DV D PDMRU WRSLF LQ (XURSHDQ DQG 86 $PHULFDQ QHZV
WKURXJKRXW WKH V EXW WKDW LV QRW KRZ , OHDUQHG WR NQRZ WKH FRXQWU\
0\ MRXUQH\ VWDUWHG LQ 0H[LFR
,Q WKH VHFRQG KDOI RI  , WUDYHOHG WKURXJK 0H[LFR , ZURWH DERXW
WKH RFFXSDWLRQ RI WKH =yFDOR LQ 0H[LFR &LW\ E\ WKH OHIWZLQJ SUHVLGHQWLDO
FDQGLGDWH $QGUHV 0DQXHO /ySH] 2EUDGRU DQG EORJJHG DERXW WKH WHDFKHU
XSULVLQJ LQ WKH FLW\ RI 2D[DFD ,Q ODWH 1RYHPEHU RI  WKH XSULVLQJ LQ
2D[DFD ZDV TXHOOHG 7KDW VDPH PRQWK , UHPHPEHU VLWWLQJ DW WKH XQLYHUVLW\
UDGLR VWDWLRQ LQ 2D[DFD RQH PRUQLQJ ZLWK D JURXS RI SURWHVWHUV , ZDV ZLWK
WKH ODVW VWDQG RI WKH SURWHVWHUV  RI XV , ZDV WKH RQO\ IRUHLJQHU LQ WKH
JURXS EXW , NQHZ RI WZR RWKHU \RXQJ IRUHLJQHUV VWLOO LQ WRZQ 7KH JURXS
GHFLGHG , VKRXOG KHOS WKHP JHW RXW RI WRZQ DQG DIWHU ILUVW DVVLJQLQJ PH
D \RXQJ JLUO WR KHOS FKDQJHG WKHLU PLQG DQG DVNHG PH WR KHOS D WHHQDJH
SXQN URFNHU IURP 0H[LFR &LW\ QDPHG 'DQLHO , LPPHGLDWHO\ ZHQW WR WDNH
6SDQLVK FODVVHV WKDW PRUQLQJ EHIRUH GRLQJ DQ\WKLQJ HOVH /RRNLQJ EDFN LW
VHHPV VWUDQJH , ZRXOG WDNH WKH WLPH WR GR WKDW ² RU WKDW 6SDQLVK VFKRROV DQG
RWKHU EXVLQHVVHV LQ 2D[DFD UHPDLQHG RSHQ IRU EXVLQHVV GXULQJ WKH OLIHWLPH
RI WKH FRPPXQH DQG VXEVHTXHQW ILJKWV EHWZHHQ 2D[DFD·V LQKDELWDQWV DQG
WKH PLOLWDU\ $W WKH WLPH LW VHHPHG QDWXUDO WR VWLFN WR DW OHDVW VRPH DVSHFWV
RI QRUPDO HYHU\GD\ OLIH
  RI IRUHLJQ ERUQ SHRSOH UHJLVWHUHG DV OLYLQJ LQ &RVWD 5LFD LQ  ZHUH 1LFDUDJXDQV
0DGULJDO   0H[LFDQV *XDWHPDODQV +RQGXUDQV DQG (O 6DOYDGRULDQV RFFXSLHG WKH
WRS IRXU VSRWV RQ WKH OLVW RI LOOHJDO PLJUDQWV UHVLGLQJ LQ WKH 8QLWHG 6WDWHV LQ  ZKLOH
1LFDUDJXDQV GLG QRW DSSHDU LQ WKH WRS  +RHIHU 5\WLQD DQG %DNHU  
´:DWFK RXWµ D VROGLHU VFUHDPV DW PH DV , PDNH P\ ZD\ WR WKH HQWUDQFH RI
WKH 8QLYHUVLGDG $XWyQRPD ´%HQLWR -XiUH]µ GH 2D[DFD 8$%-2 IDU ULJKW 

:KHQ , ZHQW WR WKH XQLYHUVLW\ DURXQG PLGGD\ , IRXQG LW VXUURXQGHG

E\ WKH PLOLWDU\ , DFWHG DV LI , ZHUH D MRXUQDOLVW LQ RUGHU WR DYRLG ORRNLQJ
VXVSLFLRXV DQG VWDUWHG WDNLQJ SLFWXUHV RI WKH VROGLHUV ZKLOH , VORZO\ PDGH
P\ ZD\ WR WKH HQWUDQFH ´:DWFK RXWµ RQH RI VROGLHUV VFUHDPHG REYLRXVO\
WKLQNLQJ , ZRXOG EHKDYH OLNH D QRUPDO MRXUQDOLVW DQG OLVWHQ WR KLP 2QFH
LQVLGH , VKRZHG WKH SLFWXUHV , KDG WDNHQ WR WKH DFWLYLVWV WR JLYH WKHP D
VHQVH RI ZKDW ZDV JRLQJ RQ DURXQG WKH XQLYHUVLW\ 'DQLHO ZDV UHDG\ ² KH
KDG ZDVKHG IRU WKH ILUVW WLPH LQ ZHHNV DQG ORRNHG OLNH VRPHZKDW OHVV RI
D UHEHO :H UDQ WR WKH EDFN HQWUDQFH ZKLOH WKH XQLYHUVLW\ UDGLR SOD\HG
FODVVLFDO PXVLF WKURXJK KXJH VSHDNHUV SODFHG RXWVLGH WKH EXLOGLQJ 7KLV
VHHPHG OLNH D VXUUHDO VRXQGWUDFN WR DFFRPSDQ\ WKH HQG RI WKH XSULVLQJ
´(YHU\WKLQJ LV ILQHµ , MRNHG ZKLOH ZH KDVWLO\ PDGH RXU ZD\ DFURVV WKH
XQLYHUVLW\ JURXQGV ´'RQ·W \RX KHDU WKH PXVLF"µ

0DQ\ RI WKRVH SUHVHQW LQ 2D[DFD RYHU WKH ODVW IHZ PRQWKV RI WKH XS
ULVLQJ ZHUH NLOOHG RU PDGH WR GLVDSSHDU RYHU LWV ILQDO IHZ GD\V 1RW 'DQLHO
, WKRXJKW :KHQ ZH DUULYHG DW WKH EDFN HQWUDQFH WR WKH XQLYHUVLW\ D
JURXS RI DUP\ WUXFNV SDVVHG WKH FRUQHU DQG VWRSSHG PRPHQWDULO\ 'DQLHO
MXPSHG EDFN RQWR XQLYHUVLW\ JURXQGV DQG KLG EHKLQG D ZDOO ZKLOH , IUR]H
6LQFH LW ZRUNHG EHIRUH , SXOOHG RXW P\ FDPHUD DQG VWDUWHG DLPLQJ LW DW
WKHP ,W ZRUNHG , ZDV DJDLQ PLVWDNHQ IRU D MRXUQDOLVW DQG WKH VROGLHUV
GURYH RII UDSLGO\ ZLWKRXW VD\LQJ D ZRUG 7KHUH ZDV D KLJKZD\ MXVW RXWVLGH

[LLL
7KH XQLYHUVLW\ UDGLR VWDWLRQ UHSUHVHQWHG WKH ODVW VWDQG RI WKH 2D[DFD FRP
PXQH 7KH EXLOGLQJ ZDV VHFXUHG E\ WKH FKHFNSRLQW RQ WKH OHIW DQG 0RORWRY
FRFNWDLOV ZHUH VWDFNHG LQ FDVH RI D PLOLWDU\ DWWDFN RQ WKH EXLOGLQJ

WKH JDWH DQG ZKLOH 'DQLHO SURWHVWHG³KH ZDQWHG D FDE RU VRPH RWKHU PRGH
RI WUDQVSRUWDWLRQ KH GHHPHG VDIHU³, ZLQNHG WKH QH[W EXV RYHU DQG ZH
ERWK ERDUGHG $IWHU KLGLQJ KLP IRU D GD\ LQ P\ KRVWHO³GXULQJ ZKLFK WLPH
KH VSHQW KDOI WKH PRQH\ KH KDG EHHQ JLYHQ IRU D ILUVWFODVV EXV WLFNHW RQ
ERR]H³ZH WRRN D FDE DQG WKHQ D VHFRQGFODVV EXV WR 0H[LFR &LW\ $W WKH
FKHFNSRLQWV DORQJ WKH ZD\ 'DQLHO SUHWHQGHG WR EH D WRXU JXLGH IRU PH DQG
D 86 $PHULFDQ DFWLYLVW IURP WKH KRVWHO ZKR , SLFNHG XS DORQJ WKH ZD\
5HSRUWLQJ RQ ZKDW KDSSHQHG LQ 2D[DFD ZLWKRXW JHWWLQJ LQYROYHG FRXOG
KDYH EHHQ DQ RSWLRQ IRU PH EXW LW ZRXOG KDYH EHHQ RQH LQ ZKLFK 'DQLHO
SRVVLEO\ HQGHG XS GHDG DV VR PDQ\ RWKHUV GLG , KDG ILUVW PHW 'DQLHO D
IHZ ZHHNV HDUOLHU ZKHQ KH VDW³GUXQN³LQ GRZQWRZQ 2D[DFD DWWDFNLQJ
PH IRU EHLQJ LJQRUDQW DV D (XURSHDQ DERXW WKHLU ORFDO VWUXJJOH $W WKDW
WLPH KH ZDV FRQYLQFHG WKDW , ZRXOG QRW GDUH JR RQWR WKH EDUULFDGHV DW WKH
XQLYHUVLW\ FDPSXV +H KDG DUULYHG WKDW PRUQLQJ IURP 0H[LFR &LW\ DQG KDG
VWLOO QRW VHHQ DQ\ RI LW ,Q WKH HQG , GUDJJHG KLP RXW IURP WKH FHQWHU RI WRZQ
DQG RQWR WKHVH EDUULFDGHV $OWKRXJK WKHUH ZHUH VQLSHUV DQG RFFDVLRQDO
DEGXFWLRQV³PRVW OLNHO\ RUFKHVWUDWHG E\ ULJKWZLQJ H[WUHPLVWV LQ WKH DUHD
DURXQG WKH XQLYHUVLW\³WKH DWPRVSKHUH UHPDLQHG JHQHUDOO\ UHOD[HG ZLWK
\RXQJ SHRSOH VLWWLQJ DURXQG SLOHV RI EXUQLQJ WUDVK OLVWHQLQJ WR JXLWDU
PXVLF DQG GLVFXVVLQJ ZKDW WKH IXWXUH ZRXOG ORRN OLNH RQFH FDSLWDOLVP ZDV
GHIHDWHG RQ D ZRUOGZLGH VFDOH
&DSLWDOLVP GLG QRW JHW GHIHDWHG DQG RQFH 'DQLHO DQG , DUULYHG LQ 0H[
LFR &LW\ LW ZDV DQQRXQFHG WKDW WKH 0H[LFDQ JRYHUQPHQW KDG D OLVW RI 
IRUHLJQHUV ZKR KDG EHHQ LQYROYHG LQ WKH DFWLRQV LQ 2D[DFD ,QYROYLQJ RQH
VHOI LQ SROLWLFV DV D IRUHLJQHU LV LOOHJDO LQ 0H[LFR DQG , ZDV IDLUO\ FHUWDLQ
, ZRXOG EH RQ WKH OLVW , KHDGHG IRU WKH VRXWKHUQ ERUGHU FULVVFURVVLQJ
0H[LFR YLD 9HUDFUX] WKHQ $ULHJD 7DSDFKXOD DQG 6DQ &ULVWREDO &KLDSDV ,

[LY
+RZ , HQGHG XS LQ 1LFDUDJXD [Y

KRSHG WR DYRLG WKH 2D[DFDQ DXWKRULWLHV WKLV ZD\ DQG IRU H[WUD VHFXULW\ ,
XVHG WKH QDPH ´-XOLXV 1LVVHQµ IRU EXV FKHFNLQV ² P\ QDPH ZDV QHYHU YHU
LILHG , WULHG WR JHW DFURVV WKH ERUGHU FORVH WR 7DSDFKXOD EXW GXH WR HLWKHU
WKH EXUHDXFUDF\ RU DQ DFWXDO DUUHVW RUGHU H[LVWLQJ³, FRXOG QHYHU TXLWH
WHOO ZKLFK³P\ FURVVLQJ ZDV SUHYHQWHG DQG , UHWXUQHG WR 0H[LFDQ VRLO ,
PDQDJHG WR FURVV LQWR *XDWHPDODQ WHUULWRU\ E\ ODQG LQ &LXGDG &XDXKWp
PRF ² D PXFK ROGHU ERUGHU VWDWLRQ ZKHUH , DVVXPHG WKH\ ZRXOG QRW KDYH
WKH WHFKQRORJ\ WR FKHFN P\ OHJDO VWDWXV LQ 0H[LFR
)RU D ZKLOH , WXUQHG LQWR SDUW RI WKH JHQHUDO EDFNSDFNHU FURZG DQG ,
KHDGHG VRXWK KRSLQJ WR UHDFK VRPH IULHQGV LQ %UD]LO , KDG PHW DW WKH :RUOG
6RFLDO )RUXP LQ 3RUWR $OHJUH %UD]LO LQ  :KHQ , DUULYHG LQ 1LFDUDJXD
VRPH WZR ZHHNV DIWHU OHDYLQJ 0H[LFR WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ
1DFLRQDO )6/1 KDG MXVW ZRQ WKH HOHFWLRQV DQG HYHU\ERG\ ZDV GLVFXVVLQJ
LW , FRXOG UHPHPEHU VRPH SRVWHUV DERXW VROLGDULW\ ZLWK WKH 6DQGLQLVWDV LQ
D FHUWDLQ SDUW\ RIILFH LQ 1RUZD\ EXW , KDG QHYHU VWXGLHG WKH 1LFDUDJXDQ VLW
XDWLRQ 7KLUG ZRUOG VRFLDOLVW H[SHULPHQWV ZHUH GRRPHG WR IDLO DFFRUGLQJ
WR P\ RZQ SROLWLFDO IUDPHZRUN , H[SHFWHG DQ\ VXFFHVVIXO UHYROXWLRQDU\
DWWHPSWV WR WDNH SODFH LQ D OHDGLQJ ILUVW ZRUOG FDSLWDOLVW FRXQWU\ <HW LQ 1L
FDUDJXD , ZDV VXGGHQO\ FRQIURQWHG ZLWK PDQ\ SHRSOH ZKR KRSHG IRU DQG
H[SHFWHG WKLV UHYROXWLRQ WR FRPH EDFN DIWHU ¶WKH  \HDUV RI QHROLEHUDOLVP·
, QHHGHG WR XQGHUVWDQG WKLV EHWWHU
$IWHU HQWHULQJ IURP +RQGXUDV , VWD\HG RQH QLJKW LQ WKH QRUWKHUQ
PRXQWDLQ FLW\ RI (VWHOt 7KH ILUVW WKLQJ , UHPHPEHU GRLQJ ZKHQ DUULYLQJ
LQ 0DQDJXD ZDV YLVLWLQJ D VKRSSLQJ FHQWHU³0HWURFHQWUR³DQG EX\LQJ D
KLVWRU\ ERRN ,W ZDV WKH RQO\ RQH WKHUH DQG WKH VKRS DVVLVWDQW FRPPHQWHG
WR WKH FXVWRPHUV ZKR FDPH DIWHU PH WKDW VKH ZDV VXUSULVHG WKH\ KDG RQH
:KDW D VWUDQJH SODFH , WKRXJKW ² HYHU\ERG\ WDONV DERXW KLVWRU\ EXW QR
KLVWRU\ ERRNV DUH DYDLODEOH
, VSHQW &KULVWPDV  UHDGLQJ DERXW WKH 6DQGLQLVWD VWUXJJOH IURP LWV
EHJLQQLQJV LQ WKH HDUO\ V XQWLO LWV GRZQIDOO LQ  ZKLOH DOVR WDONLQJ
WR WKH ORFDO 6DQGLQLVWDV RQ WKH LVODQG RI 2PHWHSH DERXW ZKDW ZDV WR EH
H[SHFWHG DIWHU WKH UHFHQW YLFWRU\ RI WKH )6/1
,W LQWHUHVWHG PH ZKDW ZRXOG KDSSHQ WR 1LFDUDJXD , WRRN D ZHHN RI

 &ODVVLI\LQJ FRXQWULHV DV EHORQJLQJ WR WKH ILUVW VHFRQG RU WKLUG ZRUOG FRXQWULHV FDQ
VHHP RXWGDWHG EHFDXVH FRXQWULHV LQ WKH WKLUG ZRUOG KDYH GHYHORSHG YHU\ GLIIHUHQWO\
LQ UHFHQW \HDUV DQG WKH VHFRQG ZRUOG XVHG WR EH WKH 6RYLHW 8QLRQ DQG LWV FORVHVW DOOLHV
1RZDGD\V LW PD\ EH PRUH DSSURSULDWH WR VD\ ¶GHYHORSLQJ ZRUOG· LQVWHDG RI WKLUG ZRUOG
EXW 1LFDUDJXDQV FRQWLQXH WR WDON DERXW WKHPVHOYHV DV OLYLQJ LQ WKH WKLUG ZRUOG
[YL ,QWURGXFWLRQ

6SDQLVK OHVVRQV LQ /HyQ DQG P\ WHDFKHU PDGH PH IRUP WKH IROORZLQJ VHQ
WHQFH ´:KHQ WKH JULQJR FURVVHV WKH ERUGHU , ZLOO SRNH KLV H\H RXWµ 7KH
LQVWUXFWRU FRPPHQWHG RQ P\ EHLQJ ´D JRRG DQWLLPSHULDOLVWµ , IRXQG
WKH HQWLUH VLWXDWLRQ DQG H[SHULHQFH RI UHDOLW\ KHOG E\ WKH 1LFDUDJXDQV WR
EH LQWULJXLQJ :KDW ZRXOG KDSSHQ" :RXOG 1LFDUDJXD EH DEOH WR JR EDFN
WR WKH V ERWK SROLWLFDOO\ DQG FXOWXUDOO\" :RXOG DOO WKRVH , KDG PHW
PDQ\ RI ZKRP KDG ZRUNHG DQG KRSHG IRU  \HDUV WR ILQDOO\ KDYH WKHLU
VRFLDOLVP EDFN KDYH WR IDFH D UHDOLW\ ² WKDW VRFLDOLVP LQ WKH VW FHQWXU\ LV
LPSRVVLEOH RU IXQGDPHQWDOO\ GLIIHUHQW IURP WKHLU V"
$IWHU WDONLQJ WR SHRSOH LQ PRVW ZHVWHUQ 1LFDUDJXDQ WRZQV DERXW WKH
LPSHQGLQJ FKDQJHV DQG KHDULQJ HYHU PRUH H[FLWLQJ YHUVLRQV RI ZKDW 1L
FDUDJXD ZDV WR WXUQ LQWR DQG DWWHQGLQJ 2UWHJD 6DDYHGUD·V LQDXJXUDWLRQ
IHVWLYLWLHV LQ HDUO\ -DQXDU\  WKH FURZGV VWDUWHG OHDYLQJ ZKHQ 2UWHJD
6DDYHGUD VWDUWHG WDONLQJ DERXW ZKLFK SROLFLHV IURP WKH V ZRXOG QRW
UHWXUQ  , OHIW 1LFDUDJXD LQ HDUO\ -DQXDU\  DQG ZRXOG QRW UHWXUQ XQWLO
$SULO  7KLQJV KDG FKDQJHG $SSDUHQWO\ GXULQJ WKH  \HDUV OHDG
LQJ XS WR WKH 6DQGLQLVWD YLFWRU\ LQ WKH SUHVLGHQWLDO HOHFWLRQV WKRVH PRVW
LQWHUHVWHG LQ KLVWRU\ KDG ZDQWHG WR IRUJHW LW UDWKHU WKDQ UHDG DERXW LW

:KDW LV VR LQWHUHVWLQJ DERXW 1LFDUDJXD"

0\ LQWHUHVW LQ 1LFDUDJXD FRQFHUQHG PRVWO\ WKH 6DQGLQLVPR LGHRORJ\ DQG
KRZ LW KDG FKDQJHG IURP DQG UHODWHG WR WKH V ,W ZDV LPSRUWDQW IRU PH
WR XQGHUVWDQG ZKDW LW PHDQV IRU DQ LQGLYLGXDO WR EH D 6DQGLQLVWD DQG KRZ
WKLV GLIIHUV IURP EHLQJ D /LEHUDO RU &RQVHUYDWLYH 7KLV TXHVWLRQ UHODWHG
WR PDQ\ DVSHFWV RI SHRSOH·V SHUVRQDO LGHQWLWLHV DQG ZHQW IDU EH\RQG ZKR
WKH\ YRWHG IRU RU RI ZKLFK SDUW\ WKH\ ZHUH D PHPEHU ,W ZDV QRW UHVWULFWHG
WR LGHRORJLFDO GLIIHUHQFHV FRPSOHWHO\ DV WKH YDULHW\ RI RSLQLRQVLGHRORJLHV
ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW SURYHG WR EH JLJDQWLF
, WULHG WR ILQG KRZ WKH 6DQGLQLVWD SXEOLF RU 6DQGLQLVWD VXSSRUWLQJ SXE
OLF UHODWHG WR WKH )6/1 ZKDW WKH\ H[SHFWHG IURP DQ )6/1 JRYHUQPHQW DQG
KRZ PXFK 'HSHQGHQF\ 7KHRU\ 0DU[LVP  DQG DQWLLPSHULDOLVP LGHRORJ\
ZHUH SDUW RI WKH YLHZV RI PRVW 6DQGLQLVWDV LQ FRPSDULVRQ WR WKH DPRXQW
RI QHROLEHUDOLVP DQG PRGHUQL]DWLRQ WKHRU\ , DOVR ZRQGHUHG KRZ SDUWLF
 0DU[LVP KDV VLQFH WKH PLGGOH RI WKH WK &HQWXU\ GHQRWHG WKH RYHUDOO LGHDV SUHVHQW
LQ WKH ZULWLQJV RI *HUPDQ UHYROXWLRQDU\ DQG SKLORVRSKHU .DUO +HLQULFK 0DU[ ² 
7KH IROORZHUV RI 0DU[ DQG IXUWKHU ZULWLQJVWKHRULHV WKDW KDYH EHHQ ZULWWHQ VLQFH DQG JR
LQ WKH VDPH GLUHFWLRQ DUH WHUPHG 0DU[LVW
:KDW LV VR LQWHUHVWLQJ DERXW 1LFDUDJXD" [YLL

LSDWRU\ GHPRFUDF\ ZRUNHG XQGHU WKH 2UWHJD 6DDYHGUD JRYHUQPHQW ,Q

WKLV FRQQHFWLRQ P\ PDLQ FRQFHUQ ZDV ZKHWKHU WKH UROH RI WKH GLIIHUHQW
W\SHV RI RUJDQL]LQJ LQ QRQJRYHUQPHQWDO RUJDQL]DWLRQV ODERU XQLRQV DQG
&RQVHMRV GH 3RGHU &LXGDGDQR &3& WKDW DUH VRPHKRZ OLQNHG ZLWK 6DQGLQ
LVPR ZDV WR OHJLWLPL]H WKRVH GHFLVLRQV RI WKH 3UHVLGHQW IRU ZKLFK KH KDG
QR SDUOLDPHQWDU\ DSSURYDO :HUH WKHVH SDUW RI D ORQJWHUP VWUDWHJ\ WR
OLQN WKH )6/1 WR WKH VWDWH EH\RQG WKH FXUUHQW HOHFWLRQV RU ZHUH WKHVH WR
H[WHQG WKH LQIOXHQFH RI DQG LPSURYHG WKH FRPPXQLFDWLRQ IURP WKH EDVH
RI VRFLHW\ ,W ZDV DOVR LPSRUWDQW WR XQGHUVWDQG KRZ WKH FRQWULEXWLRQ LQ
SDUWLFLSDWLYH SROLWLFDO SURFHVVHV E\ QRQ)6/1 PHPEHUV ZDV YLHZHG :HUH
WKH\ V\VWHPDWLFDOO\ H[FOXGHG"
$V WKH FXUUHQW JRYHUQPHQW ZDV SRUWUD\HG LQWHUQDWLRQDOO\ DV HYHU\
WKLQJ EXW UHYROXWLRQDU\ , ZRQGHUHG ZKHWKHU WKHUH ZRXOG EH D SXVK IRU
UDGLFDOL]DWLRQ IURP VRPH ORZHU OHYHO ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW ,
FRXOG LPDJLQH WKH )6/1 OHDGHUVKLS ZRXOG ILQG LWVHOI WZR VWHSV EHKLQG D
SRSXODWLRQ H[SHFWLQJ ´SDWULD VRFLDOLVPR R PXHUWRµ &KDYH] DW 2UWHJD·V LQ
DXJXUDWLRQ FHUHPRQ\ 5RGUtJXH] E RU WKDW WKH )6/1 OHDGHUVKLS ZRXOG
WXUQ RXW WR UHSUHVHQW D PLQRULW\ RI HGXFDWHG UDGLFDO VFKRODUV LQ DQ RWKHU
ZLVH /LEHUDO SRSXODWLRQ ,I UDGLFDOL]DWLRQ ZRXOG FRPH IURP EHORZ , ZDV
ZRQGHULQJ ZKDW SDUWV RI WKH SURJUDP RI WKH )6/1 OHDGHUVKLS LW ZRXOG JR
DJDLQVW DQG ZKDW FKDQQHOV ZRXOG EH XVHG³&3&V SDUW\ DSSDUDWL RU JRYHUQ
PHQW EXUHDXFUDF\³DQG ZKHWKHU VXFK DWWHPSWV ZRXOG EH VXFFHVVIXO
*LYHQ 1LFDUDJXD·V XQLTXH KLVWRULF EDFNJURXQG RI IRUHLJQ LQWHUYHQWLRQV
, ZRQGHUHG KRZ LPSRUWDQW LQWHUQDWLRQDO UHODWLRQV ZHUH IRU 1LFDUDJXD
PRVW RI DOO HFRQRPLFDOO\  DQG ZKDW LPSRUWDQFH JHQHUDOO\ ZDV DWWULEXWHG

 7KH GLVFRXUVH RI 2UWHJD 6DDYHGUD EHIRUH WKH  HOHFWLRQV DQG LPPHGLDWHO\ DIWHU
ZDUG ZDV PLQLPDOO\ UDGLFDO 7KLV FKDQJHG EHIRUH , UHWXUQHG WR 1LFDUDJXD DQG VR P\ LQLWLDO
LGHDV ZHUH VRPHZKDW RXWGDWHG , SODQQHG RQ LQFOXGLQJ LQ P\ LQWHUYLHZV VRPH RI WKH
NH\ WHUPV IURP IRUPHU WLPHV VXFK DV ¶YDQJXDUG· DQG ¶LPSHULDOLVP· WKDW ZHUH DYRLGHG
E\ 2UWHJD 6DDYHGUD DURXQG WKH HOHFWLRQV , KDG SODQQHG WR DVN UHVSRQGHQWV ZKDW WKH\
FRQQHFWHG WKRVH WHUPV WR DQG KRZ WKH\ IHOW DERXW WKHP DQG WKHQ FRPSDUH WKH UHVSRQVHV
%XW EHFDXVH WKH ZRUGV VHUYHG DV SDUW RI WKH RIILFLDO 6DQGLQLVWD JRYHUQPHQW YRFDEXODU\ DW
WKH WLPH RI P\ UHWXUQ ILQGLQJ RXW KRZ PXFK SHRSOH XVHG VXFK WHUPLQRORJ\ ZRUNHG PRUH
DV D WHVW RI WKH GHJUHH WR ZKLFK WKH\ DOLJQHG ZLWK WKH JRYHUQPHQW
 6LPLODU WR WKH SUHYLRXV TXHVWLRQ , ZDQWHG WR QRWH UHDFWLRQV WR NH\ WHUPV VXFK DV
¶&RQWUDV· DQG ¶QHROLEHUDOLVP· \HW DJDLQ WKH ZRUG ¶QHROLEHUDOLVP· KDG EHHQ JLYHQ D QHJDWLYH
FRQQRWDWLRQ LQ WKH ZRUGLQJ RI JRYHUQPHQW VWDWHPHQWV ,QWHUHVWLQJO\ QR /LEHUDO ZRXOG
HYHU PHQWLRQ ¶QHROLEHUDOLVP· LQ D IDYRUDEOH OLJKW HLWKHU , UHFRUGHG WKH GHJUHH WR ZKLFK
IRUPHU FRQWUD VXSSRUWHUV DQG SHRSOH VWLOO RUJDQL]HG LQ WKH 3DUWLGR 5HVLVWHQFLD 1LFDUDJHQVH
351 QRZ SDUWLFLSDWHG LQ DQG FRRSHUDWHG ZLWK WKH FXUUHQW JRYHUQPHQW
[YLLL ,QWURGXFWLRQ

WR LQWHUQDWLRQDO UHODWLRQV E\ WKH 1LFDUDJXDQ SXEOLF *LYHQ WKDW WKH 6DQ

GLQLVWDV ZHUH EDFN LQ SRZHU , ZDV LQWHUHVWHG LQ ILQGLQJ RXW KRZ WKH LQWHU
QDWLRQDO UHODWLRQV RI WKH V ZHUH VHHQ WRGD\ DQG ZKDW UHOHYDQFH ZDV
DWWULEXWHG WR WKHP LQ WKH FXUUHQW VHWXS

*HWWLQJ LQ FRQWDFW ZLWK 1LFDUDJXDQV

, UHDOL]HG WKDW VLPSO\ EHLQJ LQ 1LFDUDJXD SK\VLFDOO\ ZRXOGQ·W EH HQRXJK
WR JHW WR NQRZ 1LFDUDJXDQV DQG VSHFLILFDOO\ 6DQGLQLVWDV 6R , HQJDJHG LQ
VHYHUDO GLIIHUHQW SURMHFWV ZKLFK DOORZHG PH WR JHW LQ FRQWDFW ZLWK GLIIHUHQW
W\SHV RI 1LFDUDJXDQV 7KH IRXU SURMHFWV , VSHQW WKH PRVW WLPH RQ ZHUH

 /RRNLQJ IRU 1LFDUDJXDQV ZKR VWXGLHG DW WKH :LOKHOP3LHFN VFKRRO

RI SROLWLFDO OHDGHUVKLS RI WKH )UHLH 'HXWVFKH -XJHQG )'- )UHH *HUPDQ
<RXWK LQ (DVW *HUPDQ\ GXULQJ WKH V
7KH VFKRRO KDG EHHQ RQH RI WKUHH VFKRROV LQ WKH (DVWHUQ %ORF WKDW
KDG HGXFDWHG \RXQJ SHRSOH DJHV ² IURP DURXQG WKH ZRUOG ZKR
ZHUH EHOLHYHG WR EH WKH QH[W JHQHUDWLRQ RI SROLWLFDO OHDGHUV LQ WKHLU
UHVSHFWLYH FRXQWULHV $OO VWXGHQWV VWXGLHG  \HDU DQG WKHQ UHWXUQHG
WR WKHLU QDWLYH FRXQWULHV WR HQJDJH LQ WKH ORFDO VWUXJJOH WKHUH 8S WR
 1LFDUDJXDQV DWWHQGHG WKLV VFKRRO HDFK \HDU WKURXJKRXW WKH V
,Q WKH HDUO\ \HDUV WKH\ XVHG IDOVH QDPHV GXH WR VHFXULW\ LVVXHV DQG
LQ WKH ODWHU \HDUV WKH\ SURPLVHG QRW WR H[FKDQJH DGGUHVVHV , ZDV
DVNHG E\ DQ (DVW *HUPDQ ZKR KDG VWXGLHG DW WKH VFKRRO WR WU\ WR
ILQG KLV FODVVPDWHV ZKR DWWHQGHG IURP ² , SXW XS SRVWHUV
WKURXJKRXW WKH WRZQ RI /HyQ DQG ZHQW WR 0DQDJXD WR EH UHFRUGHG
RQ QDWLRQDO WHOHYLVLRQ ZLWK P\ FDPSDLJQ WR ILQG DOO WKH 1LFDUDJXDQV
ZKR VWXGLHG WKHUH , VWDUWHG WKH VHDUFK LQ ODWH -XO\  DQG UHFHLYHG
FDOOV IURP IRUPHU VWXGHQWV IRU WKH QH[W  PRQWKV $OWRJHWKHU ,
IRXQG  VWXGHQWV DOWKRXJK VRPH FRXOG QRW EH YHULILHG , XVXDOO\
WUDYHOHG WR ZKDWHYHU WRZQ RU YLOODJH WKH\ OLYHG LQ ZLWK P\ YLGHR
 7KH ODVW TXHVWLRQ FDPH XS ERWK DV SDUW RI WKH RQJRLQJ SROLWLFV LQ ZKLFK D PRUH
&HQWUDO SODFH ZDV DWWULEXWHG WR 5XVVLD GXULQJ P\ WLPH LQ 1LFDUDJXD VHH DOVR ³ 7KH *HRUJLD
FRQIOLFW S  DQG ZKHQ WKH 5XEHQ 'DULR PHGDO ZDV JLYHQ WR IRUPHU (DVW *HUPDQ PLQLVWHU
RI HGXFDWLRQ 0DUJRW +RQHFNHU VHH DOVR ³ $ZDUG JLYHQ WR ODVW 0LQLVWHU RI (GXFDWLRQ RI (DVW
*HUPDQ\ DQG DOOLDQFH ZLWK +RQGXUDV  -XO\   S  RQ  -XO\  :KHQ ORRNLQJ
IRU IRUPHU VWXGHQWV IURP WKH :LOKHOP3LHFN VFKRRO RI SROLWLFDO OHDGHUVKLS VHH DOVR ³
&RQQHFWLRQV WR D IRUPHU FHQWHU S   , ZDQWHG WR DVVHVV WKH UHOHYDQFH RI WKH LQWHUQDWLRQDO
UHODWLRQV RI WKH V DQG LWV HIIHFW LQ RUGLQDU\ FRQYHUVDWLRQV WRGD\
*HWWLQJ LQ FRQWDFW ZLWK 1LFDUDJXDQV [L[

FDPHUD DQG VRPHWLPHV VWD\HG RYHU QLJKW RU VWD\HG LQ WRXFK IRU

D ORQJHU GXUDWLRQ RI WLPH 0\ TXHVWLRQV WR WKHP FRQFHUQHG ZKDW
WKH\ KDG GRQH EHIRUH JRLQJ WR WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN
''5 *HUPDQ 'HPRFUDWLF 5HSXEOLF  ZK\ WKH\ ZHQW ZKDW WKH\
UHPHPEHUHG RI WKH WULS ZKDW WKH\ GLG DIWHU UHWXUQLQJ DQG ZKDW WKH\
GLG QRZ DQG ZKDW WKH\ WKRXJKW RI WKH FXUUHQW SROLWLFDO VLWXDWLRQ LQ
1LFDUDJXD

 &ROOHFWLQJ WKH OLIH VWRULHV RI WKH IRXQGHUV RI WKH RUJDQL]DWLRQ ¶$PL

JRV·
%D\DUGR -RVp )RQVHFD *DOR WKH XQFOH RI P\ PDLQ LQIRUPDQW  &DU
ROLQD )RQVHFD ,FDEDO]HWD ZDV YHU\ DFWLYH LQ WKH VWXGHQW PRYHPHQW
SULRU WR DQG GXULQJ WKH  UHYROXWLRQDU\ LQVXUUHFWLRQ +H GLG
QRW KROG DQ\ LPSRUWDQW SROLWLFDO SRVLWLRQ LQ WKH QHZ 6DQGLQLVWD
DGPLQLVWUDWLRQ +H ZDQWHG WR VWDUW DQ RUJDQL]DWLRQ RI SHRSOH OLNH
KLP ZKR ZHUH SROLWLFDOO\ DFWLYH SUHYLRXVO\ EXW ZKR QRZ GLG QRW
EHORQJ WR WKH LQQHU FLUFOHV RI WKH )6/1 7KH VWDWHG SXUSRVH RI WKH
RUJDQL]DWLRQ )RQVHFD *DOR ZDQWHG WR VWDUW ZDV WR VSUHDG NQRZOHGJH
DERXW 6DQGLQLVPR DQG HQJDJH LQ VRFLDO SURMHFWV IRU WKH EHWWHUPHQW
RI VRFLHW\²WKHUHE\ DGYDQFLQJ WKH JHQHUDO FDXVH RI WKH SDUW\ ZLWK
RXW GLUHFWO\ JHWWLQJ LQYROYHG LQ LW )RQVHFD *DOR PDLQWDLQHG FRQWDFW
ZLWK DQ H[WHQVLYH QXPEHU RI IULHQGV DFURVV WKH FRXQWU\ ZLWK ZKRP
KH KDG FORVH FRQWDFW DQG ZKR KH ZLVKHG WR UHFUXLW WR WKLV QHZ RUJD
QL]DWLRQ , DFFRPSDQLHG KLP DURXQG 0DQDJXD WR LQWHUYLHZ VRPH
RI WKRVH ZKR KDG DJUHHG WR MRLQ DQG ZDV VHQW E\ )RQVHFD *DOR WR
(O 5DPD DQG &KRQWDOHV WR PHHW ZLWK DQG LQWHUYLHZ RWKHUV KH ZDV
LQWHUHVWHG LQ UHFUXLWLQJ 7KH SULPDU\ TXHVWLRQV , SRVHG WR )RQVHFD
*DOR·V FRQWDFWV ZHUH 7R ZKDW LQQHUSDUW\ WHQGHQF\ WKH\ EHORQJHG
EHIRUH  ZKDW WKHLU UROH LQ WKH LQVXUUHFWLRQ DQG WKH V ZDV
KRZ WKH\ VXUYLYHG WKH V DQG ZKDW WKHLU LQYROYHPHQW RU VWDQFH
RQ WKH FXUUHQW VLWXDWLRQ ZDV

 +HOSLQJ WR FUHDWH D QHZ QDWLRQDO LQIRUPDWLRQ V\VWHP IRU WKH 1LFD

UDJXDQ 0LQLVWHULR $JURSHFXDULR \ )RUHVWDO 0$*)25 IRU DOO RI WKHLU
 $Q ¶LQIRUPDQW· LV DQ DQWKURSRORJLFDO WHUP IRU VRPHRQH ZKR KHOSV DQ DQWKURSRORJLVW
JDLQ LQIRUPDWLRQ DERXW VRPHWKLQJ 8VXDOO\ WKDW LV MXVW HYHU\RQH RQH KDV PDMRU FRQYHUVD
WLRQV ZLWK WKH SHRSOH RQH LQWHUYLHZV LQ IRUPDO VHWWLQJV DQG WKRVH ZKR KHOS RQH WR VHW XS
LQWHUYLHZV DQG JHW WR NQRZ PRUH SHRSOH 7KDW LV KRZ , DP XVLQJ LW KHUH ,W GRHV QRW KDYH
FRQQRWDWLRQV DV PHDQLQJ D W\SH RI ¶VS\· DV LWV FROORTXLDO XVDJH LPSOLHV
%D\DUGR -RVp )RQVHFD *DOR LV RQ D PLVVLRQ WR UHHQJDJH IRUPHU UHYROXWLRQDU\
ILJKWHUV LQ 6DQGLQLVWD SROLWLFV

GDWD WKURXJK WKH 1*2 6HUYLFLR GH ,QIRUPDFLyQ 0HVRDPHULFDQR VREUH

$JULFXOWXUD 6RVWHQLEOH 6,0$6 
)URP -DQXDU\  WR 6HSWHPEHU  , ZRUNHG RQ DQ LQIRUPDWLRQ
V\VWHP IRU WKH 0$*)25 7KLV SURMHFW LQYROYHG HQJDJLQJ ZLWK WKH
IUHH VRIWZDUH PRYHPHQW VLWXDWHG LQ 0DQDJXD , DOVR WDXJKW FRXUVHV
RQ WKH XVH RI RSHQ VRXUFH VRIWZDUH DW WKH 8QLYHUVLGDG GH 0DQDJXD·V
/HyQ FDPSXV 8GH0 /HyQ  7KH IUHH VRIWZDUH PRYHPHQW SURYLGHG
WKH SULQFLSDO GULYLQJ IRUFH EHKLQG WKH LGHD RI WKH QHHG IRU VRFLDOSR
OLWLFDO FKDQJH EXW WKH SURMHFW DOVR LQYROYHG HQJDJLQJ ZLWK WKH 6DQ
GLQLVWD EXUHDXFUDWV ZKR UDQ WKH PLQLVWU\ DQG WKH ODUJHO\ 6DQGLQLVWD
DJULFXOWXUH SURIHVVLRQDOV ZKR RUJDQL]HG WKH SURMHFW RI UHQHZDO LQ
WKH 1*2 6,0$6 7KURXJK P\ LQWHUDFWLRQV ZLWK WKLV SDUWLFXODU FURVV
VHFWLRQ RI 1LFDUDJXDQ VRFLHW\ , JDLQHG D GHHSHU XQGHUVWDQGLQJ RI
PLGGOHFODVV SURIHVVLRQDO 6DQGLQLVWDV· YLHZV RI 6DQGLQLVPR DQG WKH
SROLF\ SODQV RI WKRVH IRUPDOO\ LQYROYHG LQ JRYHUQPHQW , IRXQG LW
LQWHUHVWLQJ WR QRWH DQG KLJKOLJKW WKH UHODWLRQV EHWZHHQ WKH RSHQ
VRXUFH PRYHPHQW DQG WKLV PRUH WHFKQRFUDWLF XVH RI ,7 DV WKH\
ZRXOG LQLWLDOO\ VHHP WR UHSUHVHQW WZR FRPSHWLQJ SROLWLFDO YLVLRQV
ZLWKLQ 6DQGLQLVPR

 :RUN DV D SROLWLFDO MRXUQDOLVW

,Q DGGLWLRQ WR WKH DERYH , WULHG WR EH SUHVHQW ZKHQHYHU D SROLWLFDO
HYHQW RFFXUUHG DV D VRUW RI UHSRUWHU ZLWK D YLGHR FDPHUD RIWHQWLPHV

[[
, WKDQN 1LFDUDJXDQ DFWLYLVWV RI DOO W\SHV ZKR KDYH VKRZQ PH ZKDW 6DQGLQ
LVPR LV DERXW 7KHVH 6DQGLQLVWDV VXUURXQG PH GXULQJ D GD\ RI PDUFKHV LQ
/HyQ $W ILUVW , DP DIUDLG WKH\ ZLOO KXUW PH EXW WKH\ WKHQ H[SODLQ WKDW WKH\
ZDQW WR WKDQN PH IRU D SKRWR , VKRW DW DQ HDUOLHU HYHQW ZKLFK SURYHV WKHLU
LQQRFHQFH LQ D FDVH RI D GHVWUR\HG XQLYHUVLW\ GRRU VHH DOVR ³ 7HQGHQF\ S
  /XFNLO\ QR JURXS RU LQGLYLGXDO KDV HYHU EHHQ DQJU\ HQRXJK DW PH WR
DWWDFN PH SK\VLFDOO\ DQG DOPRVW DOO RI WKH WLPH PHPEHUV RI DOO JURXSV KDYH
EHHQ YHU\ KHOSIXO LQ H[SODLQLQJ WKHLU SHUVSHFWLYH WR PH 3KRWR %HUQKDUG
*UXEHU

SXEOLVKLQJ P\ UHVXOWV RQ WKH ,QWHUQHW 7KLV JDYH PH WKH RSSRUWX

QLW\ WR FRPH LQ FRQWDFW ZLWK WKH SULQFLSDO DFWRUV ,Q SDUWLFXODU ,
GHYHORSHG D QHWZRUN RI FRQWDFWV LQ WKH 6DQGLQLVWD DGPLQLVWUDWLRQ
RI /HyQ TXLWH HDUO\ IURP WKLV

:KHUH , VWD\HG
, DUULYHG LQ 1LFDUDJXD RQ  $SULO  )RU WKH ILUVW PRQWK , VWD\HG LQ
WKH %HOOR +RUL]RQWH QHLJKERUKRRG LQ 0DQDJXD ZKHUH , UHQWHG WKH JDUDJH
RI D IULHQG RI D IULHQG RI D IULHQG RI PLQH 7KH IDPLO\ FRQVLVWHG RI WKH
PRWKHU D WHDFKHU QRW SDUWLFXODUO\ IRQG RI DQ\ SROLWLFDO LGHRORJ\ DQG KHU

[[L
[[LL ,QWURGXFWLRQ

VRQ D GLVF MRFNH\ ZKR ZDV QRW LQYROYHG SROLWLFDOO\ EXW ZKR IHOW FORVHVW WR
WKH SDUW\ 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056  'XULQJ P\ VWD\ WKHUH KH
EHJDQ GDWLQJ D 3DOHVWLQLDQ ZKR KDG YHU\ VWURQJ 6DQGLQLVWD YLHZV $IWHU
D PRQWK , PRYHG WR /HyQ WKH VHFRQG ODUJHVW FLW\ LQ 1LFDUDJXD ZKHUH ,
VWD\HG GRZQWRZQ LQ D KRXVH RZQHG E\ 5LJR 6DPSVRQ 'DYLOD D PHPEHU
RI WKH )6/1 +LV IDWKHU ZDV D IRUPHU PD\RU RI /HyQ DQG FXUUHQWO\ ZRUNHG
DV GLUHFWRU RI WKH ORFDO XQLYHUVLW\ , VWD\HG DW 6DPSVRQ 'DYLOD·V KRXVH
XQWLO ODWH $XJXVW  )URP 6HSWHPEHU  XQWLO )HEUXDU\  , VWD\HG
DFURVV WKH URDG IURP 5LJR 6DPSVRQ 'DYLOD DW WKH KRXVH RI 0DUtD 0HUFHGHV
D IRUPHU DFWLYLVW LQ WKH V VWUXJJOH DJDLQVW WKH 6DQGLQLVWDV ZKR ORVW
WZR EURWKHUV LQ WKH ILJKW WR SURWHFW 1LFDUDJXD IURP WKH 6DQGLQLVWDV 2QH
EURWKHU KDG VHUYHG DV D PHPEHU RI WKH *XDUGLD 1DFLRQDO *1  WKH RWKHU
RQH DV D PHPEHU RI WKH &RQWUDV )URP )HEUXDU\ XQWLO -XQH  , UHQWHG
D KRXVH ZLWK %HUQKDUG *UXEHU DQ $XVWULDQ FLYLO ZRUNHU LQ D VRPHZKDW
SRRUHU DUHD 6DQ )HOLSH  D IHZ EORFNV IURP GRZQWRZQ /HyQ 7KH DUHD
GLG QRW KDYH WKH VDPH SDUW\ SROLWLFV DV WKH FHQWHU RI WRZQ EXW SROLWLFDO
TXHVWLRQV FDPH XS QHYHUWKHOHVV 'XULQJ WKLV SKDVH , VSHQW OHVV WLPH LQ
/HyQ WKDQ , KDG SUHYLRXVO\ )URP -XO\ XQWLO 6HSWHPEHU  , VWD\HG DW D
KRVWHO LQ 0DQDJXD DQG GLG PRVW RI P\ UHVHDUFK WKHUH ZRUNLQJ ZLWK \RXQJ
6DQGLQLVWDV DQG DOVR ZDV LQYROYHG GXULQJ WKLV WLPH LQ WKH SURGXFWLRQ RI
DQ LQIRUPDWLRQ V\VWHP IRU WKH PLQLVWU\ RI DJULFXOWXUH

0\ LQLWLDO EOXQGHUV
-XVW OLNH DQ\RQH HQWHULQJ D ILHOG IRU WKH ILUVW WLPH , GLG QRW GR HYHU\WKLQJ
FRUUHFWO\ IURP WKH VWDUW DQG , PDGH VRPH DVVXPSWLRQV EDVHG RQ P\ HDUOLHU
UHVHDUFK WKDW GLG QRW PDNH VHQVH ODWHU 2QH RI WKH WKLQJV , KDG QRW XQGHU
VWRRG ZDV KRZ WKH SROLWLFDO GLVFRXUVH DQG WKH UHODWLRQVKLS EHWZHHQ QHZV
PHGLD DQG SROLWLFDO JURXSV LQ 1LFDUDJXD ZRUNHG , GLG QRW XQGHUVWDQG WKDW
DW WLPHV WKLQJV ZHUH VDLG DV SDUW RI D WDFWLFDO JDPH , LQYHVWLJDWHG WKH 056
SDUW\ IRU VHYHUDO PRQWKV LQ WKH EHJLQQLQJ EHIRUH , XQGHUVWRRG YHU\ IHZ
6DQGLQLVWDV IHOW UHSUHVHQWHG E\ WKHP VHH DOVR ³ 056 6DQGLQLVPR S  
:LWK WLPH LW EHFDPH HDVLHU IRU PH WR GLVWLQJXLVK ZKHQ VWDWHPHQWV ZHUH
PDGH RXW RI WDFWLFDO FRQFHUQV DQG ZKHQ WKH\ UHSUHVHQWHG WKH VSHDNHU·V
UHDO RSLQLRQ :KHQ DQ LQIRUPDQW WROG PH RQH RI WKH WDFWLFDOO\ SODQWHG
VWRULHV , LPPHGLDWHO\ LQWHUUXSWHG DQG TXLFNO\ H[SODLQHG KRZ WKH SRLQW
KH ZDV FXUUHQWO\ PDNLQJ GLG QRW FRUUHVSRQG WR RWKHU IDFWV , KDG DOUHDG\
GLVFRYHUHG EHIRUH DQ HYHQ JUHDWHU GLVWRUWLRQ RQ KLV SDUW ZRXOG KDYH PDGH
0\ LQLWLDO EOXQGHUV [[LLL

LW LPSRVVLEOH IRU KLP WR DGPLW KLV HUURU ZLWKRXW ORVLQJ IDFH :LWK WKLV ,
GHPRQVWUDWHG , ZDV QRW MXVW D WRXULVW ZLWK OLWWOH WR QR NQRZOHGJH DERXW
1LFDUDJXDQ UHDOLW\ 6RPH ZRXOG WKHQ UHDFW E\ WHOOLQJ PH DQRWKHU WDFWLFDOO\
SODQWHG VWRU\ EXW DW OHDVW DV VRRQ DV , KDG LQWHUUXSWHG WKH LQIRUPDQW D
VHFRQG WLPH DQG SRLQWHG WR WKH GLVFRQQHFW IURP UHDOLW\ WKH FRQYHUVDWLRQ
ZRXOG VWDUW RYHU ZLWK D PRUH UHDOLVWLF DSSURDFK $UJXDEO\ , FRXOG QRW KDYH
DYRLGHG JRLQJ WKURXJK D SKDVH RI OHDUQLQJ DERXW WKH QDWXUH RI WDFWLFDOO\
SODQWHG VWRULHV DQG WKH\ GR VD\ D JUHDW GHDO DERXW WKH QDWXUH RI WKH FRQWDFW
EHWZHHQ 1LFDUDJXDQV DQG PDQ\ IRUHLJQHUV ZKLFK JHQHUDOO\ VSHDNLQJ LV
RI D WHPSRUDU\ QDWXUH 2Q PDQ\ RFFDVLRQV QRQH RI WKLV KDG WR GR ZLWK
PH SHUVRQDOO\ ² WKH VDPH VWRULHV ZHUH WROG LQWHUQDWLRQDOO\ DW FRQIHUHQFHV
DQG MXVW DERXW DQ\ZKHUH LQ (XURSH RU WKH 8QLWHG 6WDWHV ZKHQ WDONLQJ WR
SHRSOH ZLWK VRPH NQRZOHGJH DERXW 1LFDUDJXD )6/1 DFWLYLVWV JHQHUDOO\
FODLPHG LW LV SDUW RI D &HQWUDO ,QWHOOLJHQFH $JHQF\ &,$ WDFWLF WR GHVWDELOL]H
WKH FRXQWU\ E\ VSUHDGLQJ VWRULHV DJDLQVW WKH JRYHUQPHQW 7KDW PD\ EH
WUXH LQ VRPH FDVHV EXW GRHV QRW H[SODLQ ZK\ PHPEHUV RI DOO SROLWLFDO
JURXSV ZHUH HQJDJHG LQ WKLV DFWLYLW\
$QRWKHU LVVXH ZDV WKH TXHVWLRQ DV WR ZKLFK LQIRUPDQWV FRXOG JLYH WKH
PRVW DFFXUDWH LQIRUPDWLRQ $V LV OLNHO\ WKH FDVH LQ PRVW FRXQWULHV WKH
DPRXQW RI FRQWDFW LQGLYLGXDO PHPEHUV RI VRFLHW\ KDYH ZLWK IRUHLJQHUV LV
QRW HYHQO\ GLVWULEXWHG 6RPH SHRSOH UHVLGH LQ D SRVLWLRQ WR PHHW PRUH IRU
HLJQHUV DQG RWKHUV DUH PRUH LQFOLQHG WR VHHN WKHP RXW )RQVHFD ,FDEDO]HWD
ZDV SRLQWHG RXW WR PH E\ D *HUPDQ IULHQG RI PLQH ZKR KDG PHW KHU ZKHQ
VKH ZRUNHG LQ 1LFDUDJXD D \HDU HDUOLHU )RQVHFD ,FDEDO]HWD DJHG ²
\HDUV VWXGLHG LQ 0DQDJXD DQG KHU HQWLUH IDPLO\ FRQVLVWHG RI DFWLYH 6DQGLQ
LVWDV 6KH FODLPHG WR KDYH RQO\ WZR IRUHLJQ IULHQGV DQG WKH LQIRUPDWLRQ
DQG FRQWDFWV VKH SURYLGHG VHHPHG WR EH ZLWK JRRG LQWHQWLRQV DQG QRW ZLWK
WKH LGHD WR PDNH PH VHH 6DQGLQLVPR RQO\ RQH ZD\ 5LJR 6DPSVRQ 'DYLOD
VRQ RI WKH H[ PD\RU RI /HyQ DQG PHPEHU RI WKH )6/1 ZDV DOVR DQ HDUO\
FRQWDFW +H ZRUNV IRU D 1RUZHJLDQ VWXG\ DEURDG SURJUDP VSHDNV (QJOLVK
DQG RZQV WKH KRXVH , ILUVW VWD\HG LQ , ZDV WROG E\ D FRVWXGHQW IURP P\
WLPH DW WKH 8QLYHUVLW\ RI 2VOR WKDW ´KH ZRXOG EH JRRG WR WDON WRµ +LV H[SR
VXUH WR IRUHLJQHUV ZDV FOHDUO\ DERYHDYHUDJH $OWKRXJK , OLYHG LQ KLV KRXVH
IRU WKUHH PRQWKV , QHYHU IRUPDOO\ LQWHUYLHZHG KLP , XQGHUVWRRG WKH FULW
LFLVP KH KDG RI WKH )6/1 WKURXJK QXPHURXV FRQYHUVDWLRQV DQG ZLWK WLPH
LW VHHPHG WR PH KLV YLHZSRLQW RI ZLVKLQJ IRU D PRUH FHQWULVW 1LFDUDJXD
DQG VHHLQJ WKH SUREOHPV RI 1LFDUDJXD URRWHG LQ LWV HWKQLF PDNHXS ZHUH
YHU\ PXFK LQIRUPHG E\ KLV FODVV SRVLWLRQ DQG LQFRPH OHYHO 7KDW VLWXDWHG
[[LY ,QWURGXFWLRQ

KLP EH\RQG DQG DERYH PRVW RUGLQDU\ 1LFDUDJXDQ HFRQRPLFDOO\ :KLOH

6DPSVRQ 'DYLOD VHHPV QR OHVV DXWKHQWLF WKDQ )RQVHFD ,FDEDO]HWD KLV LGHDV
RI 1LFDUDJXDQ SROLWLFV DUH VSUHDG UDWKHU RQHVLGHGO\ WR HYHU\ JURXS RI
1RUZHJLDQ VWXGHQWV ZKR VSHQG WKHLU WLPH LQ 1LFDUDJXD 7KHLU SLFWXUH RI
ZKDW 6DQGLQLVPR HQWDLOV LV OLNHO\ WR EH VNHZHG
0RUH VHYHUH SUREOHPV DULVH ZKHQ D KHLJKWHQHG DPRXQW RI IRUHLJQHU
FRQWDFW LV FRQQHFWHG ZLWK HFRQRPLF QHHG 0RVW IRUHLJQHUV , PHW ZHUH
HLWKHU WUDYHOLQJ WKURXJK RU FRQGXFWLQJ VRFLDO UHVHDUFK DQG WKH ODWWHU W\SH
ZDV VSHFLILFDOO\ WDUJHWHG E\ VRPH 1LFDUDJXDQV 6XFK D FDVH ZDV 0DUtD
(OHQD %XVWLOOR , PHW KHU GXULQJ P\ ILUVW WULS WR 1LFDUDJXD ZKLOH VKH ZDV
VHOOLQJ SRVWFDUGV LQ WKH FHQWUDO VTXDUH RI /HyQ $IWHU , OHIW VKH WULHG WR
FRQWDFW PH YLD YLGHR FKDW ZLWK WKH FOHDU REMHFWLYH RI PRQHWDU\ KHOS )RU
YDULRXV UHDVRQV WKDW QHYHU KDSSHQHG 8SRQ UHWXUQLQJ WR 1LFDUDJXD ,
PHW KHU ZKLOH VWUROOLQJ DFURVV WKH FHQWUDO VTXDUH DQG , YLVLWHG KHU LQ KHU
KRXVH GXULQJ WKH ILUVW IHZ GD\V DQG HYHQ ILOPHG ZKDW KDSSHQHG WKHUH 6KH
KDG WXUQHG IURP EHLQJ YHU\ HQWKXVLDVWLF DERXW WKH )6/1 WR EHLQJ UDWKHU
GLVDSSRLQWHG )RU D ZKLOH , KHOSHG KHU RXW HFRQRPLFDOO\ E\ OHWWLQJ KHU
ZDVK P\ FORWKLQJ <HW ZLWKLQ WKH ILUVW IHZ ZHHNV , FDPH WR XQGHUVWDQG VKH
PDQDJHG WR EH LQ FRQWDFW ZLWK PRVW UHVHDUFK EDVHG IRUHLJQHUV DQG TXLWH D
QXPEHU RI WKHP KDG EHHQ GUDJJHG WR KHU KRXVH WR VHH MXVW KRZ SRRUO\ VKH
OLYHG , FRXOG DFWXDOO\ QRW PDNH RXW WR ZKDW GHJUHH VKH ZDV DFWXDOO\ OLYLQJ
LQ WKH KRXVH VKH VKRZHG WR IRUHLJQHUV RU ZKHWKHU LW ZDV MXVW D VKHG WR
VKRZ WRXULVWV DQG DZDNHQ WKHLU VHQVH RI HPSDWK\ *LYHQ WKH WRWDO DPRXQW
RI PRQH\ VKH PDQDJHG WR JHW IURP DOO WKH YDULRXV IRUHLJQHUV³XVXDOO\
ODUJHU DPRXQWV DOOHJHGO\ WR EH VSHQW RQ LPSURYHPHQWV IRU WKH KRXVH³LW
GLG QRW PDNH VHQVH WKDW VKH ZDV QRW DEOH WR FOLPE HFRQRPLFDOO\ $IWHU
GLVFRYHULQJ WKH QDWXUH RI WKH UHODWLRQ ZH KDG , EURNH RII PRVW FRQWDFW
ZLWK KHU :KHQ VKRUWWHUP UHVHDUFK VWXGHQWV ZRXOG FRPH LQWR WRZQ ,
DGYLVHG WKHP WR JR DQG VSHDN WR KHU DQG WR DW OHDVW VRPH RI WKHP VKH
IXQFWLRQHG DV TXLWH D FDSDEOH JXLGH DQG FXOWXUDO WUDQVODWRU SXWWLQJ WKHP
LQ FRQWDFW ZLWK ZKRPHYHU WKH\ QHHGHG WR WDON ZLWK

6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROX

WLRQDU\ H[SHULHQFH
4XLWH D ORW KDV EHHQ ZULWWHQ E\ RWKHU DQWKURSRORJLVWV RQ 1LFDUDJXD DQG WKH
6DQGLQLVWD PRYHPHQW VLQFH WKH WULXPSK RI WKH UHYROXWLRQ $IWHU , UHWXUQHG
6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROXWLRQDU\ H[SHULHQFH [[Y

IURP 1LFDUDJXD WKH ILUVW WLPH , VWDUWHG UHVHDUFKLQJ DOO WKDW , FRXOG ILQG LQ
(XURSH 2WKHU ZRUNV , GLG QRW ILQG EHIRUH UHWXUQLQJ WR 1LFDUDJXD $ ORW RI
WKLV LV LQWHUHVWLQJ IRU KLVWRULFDO FRPSDULVRQ \HW LQ WKH HQG , IHOW VRPHWKLQJ
ZDV PLVVLQJ DERXW 6DQGLQLVPR DV LW LV WRGD\

5HYROXWLRQ VWXGLHV
$IWHU WKH )6/1 ZRQ WKH UHYROXWLRQDU\ LQVXUUHFWLRQ LQ  1LFDUDJXD
ZDV WKH VLWH RI PDQ\ DQWKURSRORJLVWV LQYHVWLJDWLQJ D FRQFUHWH UHYROXWLRQ
WKURXJKRXW WKH V $ QXPEHU RI DQWKURSRORJLFDO VWXGLHV ZHUH FRQ
GXFWHG RQ WKH )6/1 DQG WKH 6DQGLQLVWD PRYHPHQW 7KUHH GRFXPHQWDU\
ILOPV VKRZ WKH HDUO\ \HDUV RI WKH UHYROXWLRQ DQG WKH H[SHULHQFHV RI LQGL
YLGXDO PHPEHUV RI VRFLHW\ RQH RQ WKH H[SHULHQFH RI WKH UHYROXWLRQ RQH
RQ WKH OLWHUDF\ FDPSDLJQ DQG RQH RQ WKH )6/1 DQG WKH &RQWUDV 6FKXOW]
 7HUFHU &LQH D E  (QULTXH]  H[SORUHG KRZ FHUWDLQ
FROOHFWLYL]DWLRQ SURJUDPV ZRUNHG EHWWHU WKDQ RWKHU DJUDULDQ SURJUDPV
XQGHU )6/1 UXOH WR PDNH WKH IDUPHUV LGHQWLI\ ZLWK WKH )6/1 DQG LWV SURMHFW
IRU WUDQVLWLRQ
/DQFDVWHU  ORRNHG DW WKH UHODWLRQVKLS EHWZHHQ FODVV FRQVFLRXV
QHVV DQG UHOLJLRQ LQ WKH UHYROXWLRQDU\ SHULRG +H QRWLFHG D GLVWLQFWLRQ
EHWZHHQ WKH ZHDOWK\ ZKR IROORZHG WKH FRQVHUYDWLYHV OHDGHUV RQ KLJKHU
OHYHOV ZLWKLQ WKH &DWKROLF FKXUFK ZKR DGYRFDWHG QRQLQWHUYHQWLRQ LQ SR
OLWLFDO DIIDLUV DQG WKH UHYROXWLRQDU\ SRRU ZKR IROORZHG DQ LGHD RI OLEHUD
WLRQ WKHRORJ\ DFFRUGLQJ WR ZKLFK IDLWK LQ &KULVW UHTXLUHG VRFLDOMXVWLFH
DFWLYLVP 7KHVH ILQGLQJV /DQFDVWHU   EHOLHYHG WR DOUHDG\ EH ZHOO
GRFXPHQWHG LQ RWKHU /DWLQ$PHULFDQ OLWHUDWXUH DQG ZKLOH KH EDVLFDOO\
VHHPHG WR DJUHH ZLWK WKHP KH IHOW WKH\ GLG QRW TXLWH H[SODLQ WKH FRPSOH[
LW\ RI UHOLJLRXV GLYLVLRQV VXIILFLHQWO\ 7KURXJK DQ DQWKURSRORJLFDO VWXG\ RI
VHYHUDO 0DQDJXD QHLJKERUKRRGV KH DVVHUWHG WKDW WKH KLVWRULFDOO\ QHZ UHY
ROXWLRQDU\ FODVV FRQVFLRXVQHVV DQG ZLWK LW WKH OHJLWLPDF\ RI 6DQGLQLVPR
ZDV EDVHG LQ WKH ZDV QRW SULPDULO\ D GLUHFW LPSRUW IURP RWKHU FRXQWULHV
QRU VRPHWKLQJ HQWLUHO\ QHZ EXW ZDV EDVHG XSRQ OLEHUDWLRQ LGHRORJ\ ZKLFK
LQ WXUQ ZDV ERUQ RXW RI DQG UHSUHVHQWHG D FRQWLQXDWLRQ ZLWK WUDGLWLRQDO
&DWKROLFLVP DV LW ZDV XQGHUVWRRG DQG SUDFWLFHG LQ 1LFDUDJXD DQG QRW D
EUHDN ZLWK LW
+R\W  KDG EHHQ LQ 1LFDUDJXD DOUHDG\ LQ WKH V DQG V 6KH
ZURWH RQ WKH FKDQJHV LQ WKH 6DQGLQLVWD YLHZ RI GHPRFUDF\ %HIRUH WKH
LQVXUUHFWLRQ WKH\ VDZ HOHFWLRQV IRU SDUOLDPHQW DV QRW QHHGHG WKHQ LQ
[[YL ,QWURGXFWLRQ

WKH HDUO\ V DV QHHGHG IRU WDFWLFDO UHDVRQV DQG ILQDOO\ VRPH \HDUV ODWHU
DV D QHFHVVDU\ SDUW RI D WUXO\ GHPRFUDWLF VRFLHW\ 6KH DOVR VDZ D FKDQJH
LQ WKH UROH LQVWLWXWLRQV RI SDUWLFLSDWLYH GHPRFUDF\ KDG LQ WKH 6DQGLQLVWD
YLHZ :KLOH WKH\ LQLWLDOO\ VDZ WKHP DV D ZD\ WR VSUHDG WKH SROLWLFV RI WKH
6DQGLQLVWD OHDGHUVKLS E\ WKH ODWH V WKH\ UHDOL]HG WKDW WKH\ QHHGHG WR
EH FRQWUROOHG E\ WKH ORFDO FLWL]HQV ZKR WKH\ ZHUH VXSSRVHG WR UHSUHVHQW
GLYRUFHG IURP WKH SDUW\
%RXUJRLV  GLVSOD\HG WKDW WKH 0LVNLWR PLQRULW\ DQG WKH EODFN
SRSXODWLRQ ZHUH KHDYLO\ UHFUXLWHG E\ WKH &,$ IRU &RQWUD RSHUDWLRQV 7KHVH
JURXSV OLYH PDLQO\ RQ WKH 1LFDUDJXDQ HDVW FRDVW LQ WKH WZR VHPLLQGHSHQGHQW
UHJLRQHV DXWyQRPDV DQG LWV PHPEHUV DUH JHQHUDOO\ VXEMHFW WR HYHQ KLJKHU
OHYHOV RI PDWHULDO GHSULYDWLRQ WKDQ WKH JHQHUDO SRSXODWLRQ 7KH VWXG\ RI
WKHVH DUHDV LV TXLWH DSDUW IURP WKH VWXG\ RI WKH FHQWUDO DQG 6SDQLVK VSHDN
LQJ SDUW RI 1LFDUDJXDQ DQG IRFXVHG RQ WKH ELOLQJXDO ODQJXDJH VLWXDWLRQ
DQG SDWWHUQV RI WKHLU LQWHUQDO RUJDQL]DWLRQ
$ ZRUN WKDW , GLVFRYHUHG PXFK WRR ODWH ZKLFK ZRXOG KDYH EHHQ YHU\
XVHIXO LQ SUHSDULQJ PH IRU 1LFDUDJXD LV WKH ERRN 1LFDUDJXD E\ :DONHU DQG
:DGH   WKH IRUPHU RI ZKLFK SXEOLVKHG SUHYLRXV YHUVLRQV XQGHU WKH
VDPH WLWOH DQG RWKHU ERRNV RQ 1LFDUDJXD VLQFH WKH HDUO\ V 7KH ERRN
LV ZULWWHQ LQ DQ H[WUHPHO\ UHDGDEOH MRXUQDOLVWLF VW\OH DQG WKH SHUVSHFWLYH
RI 'HSHQGHQF\ RI 1LFDUDJXD WR WKH 8QLWHG 6WDWHV WKDW LV SUHVHQWV LV DOVR
YHU\ PXFK WKH VDPH ZD\ , VHH WKH UHODWLRQVKLS KHUH )RU REYLRXV UHDVRQV
WKH DXWKRUV KDYH D PXFK FORVHU SHUVRQDO UHODWLRQ WR WKH 1LFDUDJXD RI WKH
V WKDQ PH )RU PH WKH V LV D EDFNGURS WR WKH FXUUHQW HYHQWV
ZKHUHDV IRU WKHP WKH IRFXV OLHV LQ WKLV SHULRG DOWKRXJK WKH\ DOVR GHVFULEH
WKH KLVWRU\ VLQFH WKHQ
2I SDUWLFXODU LPSRUWDQFH LQ SRSXODU GLVFXVVLRQV DEURDG DERXW WKH 6DQ
GLQLVWD UHYROXWLRQ RI WKH V LV ZKDW ZDV FDOOHG WKH P\VWLTXH RI WKH UH
YROXWLRQ 7KH DFDGHPLF YHUVLRQ RI WKLV KDYH EHHQ WKH VWXGLHV DERXW WKH
HPRWLRQV LQ FRQQHFWLRQ ZLWK WKH UHYROXWLRQDU\ SURFHVV 5HHG   , ILQG
WKLV ILHOG D ELW SUREOHPDWLF 7DONLQJ DERXW WKH 1LFDUDJXDQ UHYROXWLRQ DV
P\VWLTXH VHHPV WR PDNH 1LFDUDJXD PRUH H[RWLF WKDQ ZKDW LW QHHGV WR EH
,Q SDUW LW VHHPV WR PH WKDW ZHVWHUQHUV FRPLQJ WR 1LFDUDJXD WU\ WR ILQG
VRPHWKLQJ H[RWLFP\VWLTXH HYHQ ZKHQ WKLQJV DUH QRW YHU\ GLIIHUHQW IURP
WKHLU KRPH RI RULJLQ , FOHDUO\ UHPHPEHU RQH VLWXDWLRQ ZKHQ 6,0$6 KDG
DQ RSHQ GD\ HYHQW SUHVHQWLQJ WKH GLIIHUHQW SURMHFW RI ZKLFK WKH\ ZHUH
LQYROYHG WR UHSUHVHQWDWLYHV RI GRQRU RUJDQL]DWLRQV $PRQJ WKHLU PHWKRGV
RI GLVVHPLQDWLQJ LQIRUPDWLRQ WR WKH SXEOLF ZHUH ILOPLQJ LQWHUYLHZV ZLWK
1LFDUDJXDQ 0LVNLWR UHIXJHHV ZDLW IRU IRRG LQ D FDPS LQ +RQGXUDV GXULQJ WKH
V 7KH WUHDWPHQW RI WKH HDVW FRDVW 0LVNLWR 1LFDUDJXDQV ZDV RQH RI WKH
GDUNHU FKDSWHUV RI WKH 6DQGLQLVPR RI WKH V &RQVHTXHQWO\ WKH &HQWUDO
,QWHOOLJHQFH $JHQF\ &,$ UHFUXLWHG KHDYLO\ DPRQJ WKHP DQG DQWKURSRORJLVWV
VWXGLHG WKHP %RXUJRLV   3KRWR 81+&5 )LOH

LQGLYLGXDOV DQG XSORDGLQJ WKHP WR D ZHEVLWH UHFRUGLQJ DXGLR SOD\V DQG

VSUHDGLQJ WKHP E\ UDGLR KDYLQJ UDGLR '-V UHDG SULFH GDWD RI DJULFXOWXUDO
JRRGV RYHU WKH DLUZDYHV DQG SXWWLQJ WKH VDPH GDWD RQ DQ DGYDQFHG ZHEVLWH
ZKHUH XVHUV ZRXOG EH DEOH WR FRPSDUH WKH GDWD EHWWHU 6HYHUDO RI WKHVH
PHWKRGV ZHUH H[SHULPHQWDO RQ D ZRUOG VFDOH $ 'DQLVK UHSUHVHQWDWLYH RI
DQ DLG RUJDQL]DWLRQ UDLVHG KHU KDQG DQG VDLG WKDW LQ $IULFD WKH\ XVHG VWUHHW
WKHDWHU DQG GDQFHV DQG VXJJHVWHG 6,0$6 DOVR VWDUW XVLQJ WKLV PHWKRG 7KH
1LFDUDJXDQ FROOHDJXH VHDWHG EHVLGH PH &DUORV $OEHUWR 5RFKD &DVWUR UROOHG
KLV H\HV DW WKLV VXJJHVWLRQ DQG VWDUWHG ODXJKLQJ ZKHQ , ZKLVSHUHG WR KLP
WKDW PD\EH ZH VKRXOG PDNH D VWUHHW GDQFH DERXW DJULFXOWXUDO SULFHV UDWKHU
WKDQ SXW WKHP RQ WKH ,QWHUQHW 1RERG\ VDLG DQ\WKLQJ RXW ORXG ² SRVVLEO\
EHFDXVH WKH 'DQLVK ZRPDQ ZKR VSRNH UHSUHVHQWHG IXQGLQJ

,W LV WKLV VRUW RI DVVXPHG H[RWLF TXDOLWLHV RI 1LFDUDJXD DQG 1LFDUDJXDQV

, WU\ WR DYRLG 7KLV LV KRZ , XQGHUVWDQG KRZ WKH WHUP ¶P\VWLTXH· ZDV DQG LV
XVHG E\ )LUVW :RUOG DQWKURSRORJLVWV DQG RWKHU VRFLDO VFLHQWLVWV LQ UHODWLRQ
WR WKH 6DQGLQLVWD UHYROXWLRQ , WU\ WR NHHS P\ GHVFULSWLRQV FOHDQ DQG RSHQ
IRU FRPSDULVRQ IRU WKH UHDGHUV IURP WKH )LUVW :RUOG DQG OHW WKHP UHODWH
LW WR WKHLU RZQ OLYHV 7KH WHUP DOVR DSSHDUV LQ 6DQGLQLVWD GDLO\ VSHHFK LQ

[[YLL
7KH 6DQGLQLVWD &DUROLQD ,FDEDOFHWD *DUD\ FRPSODLQV DERXW WKH ODFN RI UHYR
OXWLRQDU\ P\VWLTXH GXULQJ WKH FXUUHQW 6DQGLQLVWD JRYHUQPHQW

ZKLFK LW VHHPV WR EH HTXLYDOHQW WR WKH H[LVWHQFH RI D ZLOOLQJQHVV WR ZRUN

YROXQWDULO\ ,Q WKLV VHQVH LW LV XVHG E\ 6DQGLQLVWD &DUROLQD ,FDEDOFHWD *DUD\
ZKR FRPSODLQHG RI LW LQ WKH FXUUHQW SKDVH RI WKH UHYROXWLRQ

, WKLQN WKHUH ZDV PRUH P\VWLTXH GXULQJ WKH V WKDQ QRZ«2K
\HV 1HROLEHUDOLVP KDV GRQH WKDW PXFK RI 6DQGLQLVWD PLOL
WDQF\ KDV EHHQ PRQHWL]HG D ELW ,W·V DOO DERXW FRVWV DQG EHQ
HILWV PRUH WKDQ WKH SDVVLRQ RI WKH V , WKLQN WKDW KDV
VLPSO\ EHHQ ORVW 7KDW LV D JLJDQWLF ORVV WKH ORVV RI WKHVH
YDOXHV«

, GR UHFRJQL]H WKH LPSRUWDQFH RI WKLV VHFRQG VHQVH RI WKH WHUP ZKHQ

GHVFULELQJ KRZ WKH FXUUHQW 1LFDUDJXDQ JRYHUQPHQW PDNHV XVH RI SDLG
SURWHVWHUV VHH DOVR ³ 8VH RI SDLG SURWHVWHUV" S   , KDYH DYRLGHG XV
LQJ WKH WHUP P\VWLTXH LQ P\ RZQ DQDO\VLV LQ RUGHU WR QRW SURGXFH PRUH
FRQIXVLRQ VXUURXQGLQJ LWV XVDJH
$QRWKHU VXEMHFW RI D ORW RI DWWHQWLRQ LQ OLWHUDWXUH RQ WKH 6DQGLQLVWD
UHYROXWLRQ ZDV WKH UHIRUP RI WKH KHDOWK FDUH V\VWHP DV SDUW RI WKH UHYR
OXWLRQDU\ SURFHVV 'RQDKXH  5LSS  *DUILHOG  %RVVHUW 
:LOOLDPV   D VXEMHFW WKDW FRQWLQXHV WR EH UHOHYDQW 5LSS  VXJ
JHVWHG WKDW IURP D 0DU[LVW YLHZSRLQW WKH VWXG\ RI WKH KHDOWK FDUH V\VWHPV
FDQ VHUYH DV D UHSODFHPHQW IRU SDUWLFLSDQW REVHUYDWLRQ DPRQJ MXVW D KDQG
IXO RI LQIRUPDQWV DV WKH DQDO\VLV RI WKH FODVV DQWDJRQLVPV ZLWKLQ WKH KHDOWK
FDUH V\VWHP ZLOO DXWRPDWLFDOO\ VD\ VRPHWKLQJ DERXW FODVV UHODWLRQV LQ VRFL

[[YLLL
6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROXWLRQDU\ H[SHULHQFH [[L[

HW\ LQ JHQHUDO 7KLV OLQH RI WKLQNLQJ PD\ EH ZKDW PDGH LW SRSXODU WR VWXG\
LQGLYLGXDO DVSHFWV RI 6DQGLQLVPR UDWKHU WKDQ WKH SKHQRPHQRQ DV D ZKROH

3RVW6DQGLQLVWD VWXGLHV
,Q UHFHQW \HDUV D QXPEHU RI ZRUNV RQ 1LFDUDJXD KDYH EHHQ SXEOLVKHG
0RVW RI WKHVH FRQFHUQ WKH WLPH EHWZHHQ WKH 6DQGLQLVWD JRYHUQPHQWV 7KH
SHULRG ZDV ODEHOHG ¶3RVW6DQGLQLVWD· ZKHQ LW ZDV QRW NQRZQ WKDW WKH 6DQ
GLQLVWDV ZRXOG UHWXUQ WR SRZHU DJDLQ 0XFK LQYROYHV QHZ W\SHV RI VRFLDO
PRYHPHQWV DQG WKH VHQVH RI GHVWUXFWLYHQHVV RI WKLV SHULRG
%DEE ZURWH DERXW WKH VLWXDWLRQ RI 1LFDUDJXDQ ZRPHQ DQG WKH LPDJHU\
RI UHYROXWLRQ LQ WKH SRVWUHYROXWLRQDU\ SHULRG %DEE    ,Q 5HF\
FOHG 6DQGDOLVWDV VKH IRFXVHG RQ SRRU KRXVHKROGV LQ 0DQDJXD LQ WKH V
ZKHQ JRYHUQPHQW SURJUDPV WR KHOS WKHVH ZHUH UROOHG EDFN %DEE FRQ
FOXGHG WKDW WKH FRQVHTXHQFHV ZHUH YHU\ GLIIHUHQW IRU PHQ DQG ZRPHQ
:RPHQ ZHUH IRUFHG EDFN WR WKH KRXVHKROG WR WDNH FDUH RI FKLOGUHQ DQG
IDPLO\ DQG ZHUH DFWLYHO\ GLVFRXUDJHG IURP SDUWLFLSDWLQJ LQ WKH ZDJH OD
ERU ZRUNIRUFH 6KH VKRZHG KRZ VRPH ZRPHQ DUH DEOH WR ILJKW EDFN 6KH
FRPSDUHG WKH VLWXDWLRQ ZLWK WKDW RI RWKHU SRVWUHYROXWLRQDU\ UHJLPHV *HQ
HUDOO\ WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0) LQVWLWXWHG WKH VDPH SURJUDP DV
LPSRVHG RQ PDQ\ RWKHU /DWLQ $PHULFDQ FRXQWULHV EXW ZLWK KDUVKHU FRQVH
TXHQFHV IRU WKH JHQHUDO SRSXODWLRQ %DEE  ²  0DQ\ RI WKRVH ZKR
ZRUNHG LQ WKH SXEOLF VHFWRU VDZ WKHPVHOYHV IRUFHG WR ZRUN LQ WKH LQIRUPDO
HFRQRP\ 7KDW RIWHQWLPHV PHDQW VHWWLQJ XS D VWRUH LQ WKHLU KRPH HVSH
FLDOO\ IRU ZRPHQ ZKR VWD\HG DW KRPH WR ZDWFK WKH FKLOGUHQ %DEE 
  6LPXOWDQHRXVO\ ZKDW %DEE   FDOOHG ¶VWLOO PRELOL]HG PDVVRU
JDQL]DWLRQV· JURXSV VKH REYLRXVO\ EHOLHYHG ZRXOG IDGH DZD\ ZLWK WLPH
PDQDJHG WR ZLQ FRQFHVVLRQV LQ QHJRWLDWLRQV ZLWK WKH /LEHUDO JRYHUQPHQWV
,Q WKLV FRQQHFWLRQ %DEE   IRFXVHG RQ KRZ WKH 6DQGLQLVWD ZRPHQ·V
RUJDQL]DWLRQ $VRFLDFLyQ GH 0XMHUHV 1LFDUDJHQHV /XLVD $PDQGD (VSLQR]D $01
/$( ORVW VXSSRUW IURP VRPH VHFWRUV DQG KRZ D QHZ SHQDO FRGH LQ 
REOLJHG ZRPHQ ZKR ZHUH SUHJQDQW GXH WR UDSH WR JLYH ELUWK WR WKH FKLOG
DQG RXWODZHG KRPRVH[XDOLW\ %DEE GHVFULEHG D G\VIXQFWLRQDO VRFLHW\ DQG
FRPELQHG LW ZLWK GLVFRXUVHV RQ GHYHORSPHQW DQG KRZ WKH IXQGDPHQWDO
SUHPLVH XQGHU WKH 1LFDUDJXDQ GLVFRXUVH DW WKH WLPH ZDV WKDW WKH FRXQ
WU\ ZDV LQ SDLQ 7KRVH IURP SRRU KRXVHKROGV UHODWHG WKLV PXFK PRUH WR
WKHLU RZQ OLYHV WKDQ DQ DEVWUDFW HQWLW\ %DEE  ²  $V VKH VDZ LW
QRQSDUWLGDULDQ PRYHPHQWV ZHUH DERXW WR VWDUW JURZLQJ RXW RI WKH UXEEOH
[[[ ,QWURGXFWLRQ

RI QHROLEHUDOLVP LQFOXGLQJ SHDFH HQYLURQPHQWDO DQG LQGLJHQRXV RUJDQL

]DWLRQV LQ ZKDW VKH VDZ DV DQ ´DOWHUHG QDWLRQDO FRQWH[W >WKDW@ VXSSRUWHG
PRUH SOXUDOLVW DSSURDFKHVµ %DEE  ² 
7KLV VHHPV VLPLODU WR ZKDW $PLQ  WKRXJKW ZKHQ KH DUJXHG WKDW
WKH JRDO RI QDWLRQDO LQGHSHQGHQFH DV D FRPPRQ WKHPH ZKLFK FRXOG EH XVHG
WR JDLQ SROLWLFDO VXSSRUW WKURXJKRXW WKH WKLUG ZRUOG ZHUH H[KDXVWHG E\
 +H DOVR EHOLHYHG D ORW RI WKH VXEVHTXHQW PRYHPHQWV ZRXOG WUHDW VLQ
JOH LVVXHV DJDLQ PXFK LQ OLQH ZLWK %DEE   $FFRUGLQJ WR $PLQ 
WKLV ZDV QRW VR PXFK DQ H[SUHVVLRQ RI WKH HQG RI PRUH IXQGDPHQWDO FULWL
FLVPV RI WKH V\VWHP EXW LW PHDQW WKDW QDWLRQDO OLEHUDWLRQ LQ LWVHOI ZDV QRW
D JRDO WKDW ZRXOG UHDFK IDU HQRXJK IRU WKH PDVVHV 7KHVH QHZ PRYHPHQWV
ZRXOG VWLOO VHHN WR FRQIURQW FDSLWDOLVP DQG WKH QRWLRQ RI H[SORLWDWLRQ \HW
WKH\ ZRXOG GR VR LQ PRUH LVRODWHG FDVHV *LYHQ WKLV SHUVSHFWLYH WKH WLPH RI
SDUW\ SROLWLFV GLG QRW FRPH FRPSOHWHO\ WR DQ HQG EXW KDG WR EH UHDGMXVWHG
WR WKH QHZ VXEMHFWLYHO\ H[SHULHQFHG QHFHVVLWLHV RI WKH SHRSOH RI WKH VRXWK
7KH VWXG\ RI KHDOWK FDUH FRQWLQXHG IURP WKH 6DQGLQLVWD SHULRG WKRXJK
UDWKHU WKDQ ORRNLQJ DW WKH EXLOGXS RI WKH KHDOWK FDUH V\VWHP WKH IRFXV
ZDV RQ LWV EUHDNGRZQ ORRNLQJ DW VXFK WKLQJV DV WKH DEROLWLRQ RI ¶WKHU
DSHXWLF DERUWLRQ· PHQWLRQHG DERYH DQG WKH SUHSDUDWLRQV WR UHPRYH LW
0F1DXJKWRQ %ODQGRQ DQG $OWDPLUDQR  0F1DXJKWRQ 0LWFKHOO DQG
%ODQGRQ   $QRWKHU IRFXV RI VWXG\ ZDV WKH VWXG\ RI ODQG ULJKWV IRO
ORZLQJ WKH UHYROXWLRQ $EX/XJKRG  (YHULQJKDP   (YHULQJKDP
 ZURWH RQ FKDQJLQJ SURSHUW\ ULJKWV LQ 1LFDUDJXD DIWHU WKH HOHFWRUDO
GHIHDW LQ  ,Q KLV SHUVSHFWLYH WKH SULYDWL]DWLRQ RI ODQGV DIWHU 
ZHUH GRQH LQ D ZD\ WKDW IDYRUHG FHUWDLQ LQIOXHQWLDO JURXSV )XUWKHU WKLV
PDGH ODQG GLVSXWHV LQ WKH IROORZLQJ \HDUV LQHYLWDEOH PDGH WKH SRRU HYHQ
SRRUHU DQG SUHYHQWHG WKH IXOO HVWDEOLVKPHQW RI GHPRFUDF\ (YHULQJKDP
   +H ORRNHG DW WKH VSHFLILFV RI 1LFDUDJXDQ ODZ DQG WKH KLVWRU\ RI
WKH YDULRXV GHFUHHV WKDW RUGHUHG WKH H[SURSULDWLRQ RI ODQG LQ WKH V
(YHULQJKDP  ²  +LV FRQFOXVLRQ SRVVLEO\ LQVSLUHG E\ D SROLWLFDOO\
/LEHUDO YLHZSRLQW ZDV WKDW WKH KHDGV RI VWDWHV DQG LQWHUQDWLRQDO SROLWLFDO
H[SHUWV ZHUH ULJKW LQ DUJXLQJ WKDW WKH OHYHO RI XQFHUWDLQW\ RI SURSHUW\
KHOG ZDV WKH PRVW LPSRUWDQW IDFWRU LQ GHWHUPLQLQJ WKH RYHUDOO OHYHO RI
SRYHUW\ RI SHDVDQWV ZLWKLQ D VRFLHW\ DQG ZKLFK PDGH 1LFDUDJXD VWDQG RXW
SDUWLFXODUO\ EDGO\ (YHULQJKDP  ² 
6LPLODU VWXGLHV DERXW YDULRXV DVSHFWV RI WKH SHUFHLYHG EUHDNGRZQ
RI VRFLHW\ ZHUH ZULWWHQ E\ VHYHUDO DQWKURSRORJLVWV 5RGJHUV  DERXW
WKH KRUULILF OLYHV RI WKH PHPEHUV RI VWUHHW JDQJV RI 0DQDJXD 0HWR\HU
6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROXWLRQDU\ H[SHULHQFH [[[L

 IRFXVLQJ RQ ZRPHQ·V RUJDQL]DWLRQV 4XHVDGD  IRFXVLQJ RQ

HPERGLGQHVV )LHOG  IRFXVLQJ RQ WKH UHELUWK RI LQGLJHQRXV LGHQWLWLHV
LQ ZHVWHUQ 1LFDUDJXD 7DWDU  ZKR FODLPV WR VKRZ WKDW WKH )6/1 QHYHU
UHDOO\ UHSUHVHQWHG WKH LQVXUUHFWLRQLVW PRYHPHQW RI  DQG /XQGJUHQ
 ZKR ORRNHG DW WKRVH ZKR UHFHLYHG SURIHVVLRQDO HGXFDWLRQ GXULQJ
WKH 6DQGLQLVWD UHJLPH DQG KRZ WKH\ QHJRWLDWHG WKHLU SUHYLRXV DOLJQPHQW
ZLWK WKH )6/1 LQ WLPHV RI QHROLEHUDOLVP ZKHQ WKHVH ZHUH IURZQHG XSRQ
7KH DQWKURSRORJLFDO VWXG\ RI WKH 0LVNLWR FRXOG EH FRQGXFWHG VRPH
ZKDW DSDUW IURP WKLV QDWLRQDO FRQWH[W SRVVLEO\ GXH WR WKH SK\VLFDO GLVWDQFH
IURP 0DQDJXD ODQJXDJH GLIIHUHQFHV DQG WKDW 6DQGLQLVPR ZDV QRW YHU\
SRSXODU LQ WKH V DPRQJ WKH 0LVNLWRV -DPLHVRQ  ZURWH DERXW
ZHDOWK GLIIHUHQFHV LQ D OLWWOH YLOODJH DW WKH /DJXQD 3HUOD DQG WKH LPSRUWDQFH
RI RZQHUVKLS RI WKH HTXLSPHQW WR FDWFK VHD ERE LQ GHWHUPLQLQJ VXFK GLIIHU
HQFHV LQ WKH HDUO\ V ,Q KLV DQDO\VLV KH GLG QRW PHQWLRQ WKH FKDQJH RI
JRYHUQPHQW LQ  RU WKH LPSRUWDQFH H[LVWHQFH RI WKH 6DQGLQLVWD PRYH
PHQW KDG IRU VXFK FODVV UHODWLRQV 7KLV ZRXOG KDYH EHHQ XQWKLQNDEOH KDG
WKH VWXG\ EHHQ FRQGXFWHG RQ WKH 1LFDUDJXDQ ZHVW FRDVW

6WLOO UHOHYDQW"

, SUHSDUHG P\VHOI IRU OLIH LQ 1LFDUDJXD E\ UHDGLQJ VHYHUDO RI WKH VWXGLHV

IURP EHIRUH  , ZDV DZDUH WKDW VRPH FKDQJHV KDG WDNHQ SODFH DQG WKDW
, ZRXOG QRW ILQG WKH FRXQWU\ LQ D SURFHVV RI QHROLEHUDO VHOIGHVWUXFWLRQ <HW
JLYHQ WKDW PRVW RI WKHVH VWXGLHV ZHUH FRQGXFWHG RQO\ D IHZ \HDUV LQ WKH
SDVW , H[SHFWHG WKHP WR VWLOO EH PRUH RU OHVV UHOHYDQW , TXLFNO\ QRWLFHG WKDW
JLJDQWLF FKDQJHV KDG WDNHQ SODFH 7KHUH ZDV QRW WKH SOHWKRUD RI GLIIHUHQW
LQGHSHQGHQW VRFLDO PRYHPHQWV $PLQ   %DEE  KDG SUHGLFWHG
$OWKRXJK D UDWKHU ODUJH QXPEHU RI IRUPDOO\ LQGHSHQGHQW WKHPH EDVHG
RUJDQL]DWLRQV H[LVWHG , XQGHUVWRRG HDUO\ RQ WKH\ ZHUH DOZD\V UHODWHG WR
SDUW\ SROLWLFV 7KH FRQQHFWLRQV ZHUH QRW DOZD\V LPPHGLDWHO\ REYLRXV DQG
PDQ\ WLPHV WKH ¶SROLWLFDO OLQH· ZDV WR GHQ\ DQ\ SDUW\ FRQQHFWLRQ 2WKHU
WLPHV WKH FRQQHFWLRQ ZDV FRQFHDOHG HYHQ IURP VRPH RI WKH ORZHU OHYHO
SDUWLFLSDQWV <HW LW FRXOG DOZD\V EH IRXQG LI RQH ZDV SHUVLVWHQW HQRXJK
0RVW RUJDQL]DWLRQV WKDW GHFODUHG WKHPVHOYHV LQGHSHQGHQW ZHUH OLQNHG WR
WKH )6/1 , DOVR IRXQG VXFK JURXSV FRQQHFWHG WR WKH 3DUWLGR GH 5HVLVWHQFLD
1LFDUDJHQVH 351 WKH SDUW\ RI WKH IRUPHU &RQWUDV DQG WKH 056 VHH DOVR
³ 3RZHU WKURXJK FRPELQLQJ SDUOLDPHQWDU\ DQG DFWLYLVW ZRUN S  
5HODWLRQV EHWZHHQ 0LVNLWRV DQG 6DQGLQLVWDV KDG FKDQJHG PDUNHGO\
[[[LL ,QWURGXFWLRQ

IURP WKH V ZLWK 6DQGLQLVWDV JDLQLQJ PXFK PRUH VXSSRUW RQ WKH HDVW
FRDVW WKDQ SUHYLRXVO\ , ZHQW WR WKH HDVW FRDVW RQO\ RQFH D WULS GXULQJ
ZKLFK , ZDV DEOH WR LQWHUYLHZ UHSUHVHQWDWLYHV RI WKH )6/1 LQ /DJXQD 3HUOD
DQG %OXHILHOGV ZKR ZHUH LQ SRZHU 7KH WULS JDYH PH PRUH LQVLJKW LQWR WKH
FXUUHQW VWDWH RI UHODWLRQV DV LW KHOSHG P\ IRUPDWLRQ RI D JHQHUDO DQDO\VLV
RI WKH FXUUHQW 6DQGLQLVWD VFKHPH $PRQJ RWKHU WKLQJV WKH )6/1 UHSUHVHQ
WDWLYHV LQ /DJXQD 3HUOD QRZ EHOLHYH WKDW WKHLU PDLQ SUREOHP RI JDLQLQJ
ORFDO VXSSRUW LV ZLWK PHVWL]RV DV WKH SDUW\ KDV JRWWHQ DQ LPDJH RI EHLQJ
WKH SDUW\ RI LQGLJHQRXV DQG 0LVNLWR LQ WKLV DUHD
7KH VLWXDWLRQ LQ ODQG ULJKWV ZDV TXLWH GLIIHUHQW IURP ZKDW UHVHDUFKHUV
HQFRXQWHUHG MXVW D IHZ \HDUV HDUOLHU LQ WKDW VRPH ODQG ZDV DJDLQ JLYHQ RXW
DOWKRXJK QRW RQ WKH VDPH VFDOH DV LQ WKH V $QG LW VWLOO LQYROYHG PXFK
FRQIXVLRQ DERXW ZKR LV DFWXDOO\ WR EH VHHQ DV WKH RZQHU RI DQ\ SURSHUW\
GXH WR FKDQJLQJ SURSHUW\ ULJKWV DQG LQWHUSUHWDWLRQV RI ODZV E\ WKH YDULRXV
JRYHUQPHQWV 3ROLWLFDO GHDOV PDGH DURXQG WKH KDQGLQJ RYHU RI SRZHU E\
WKH 6DQGLQLVWDV WR &KDPRUUR ZHUH VWLOO EHLQJ XVHG WR H[SODLQ WKH UHSDUWL
WLRQ RI ODQG E\ WKH JRYHUQPHQW $V D KLVWRULFDO EDFNJURXQG VWXGLHV RQ
ODQG ULJKWV DUH KLJKO\ LQIRUPDWLYH DQG UHOHYDQW LQ XQGHUVWDQGLQJ WRGD\·V
VLWXDWLRQ 'LIIHUHQW IURP WKH GHVFULSWLRQV RI (YHULQJKDP RI WKH WLPH RI
/LEHUDO JRYHUQPHQWV WKH FRQIXVLRQ , ZLWQHVVHG WHQGHG WR IDYRU WKH SRRU
UDWKHU WKDQ WKH ULFK ODQG RZQHU GXULQJ WKH VHFRQG 6DQGLQLVWD SHULRG

6DQGLQLVWD ,, VWXGLHV
7KH VHFRQG SHULRG RI 6DQGLQLVPR VWDUWLQJ LQ ² KDV UHFHLYHG OHVV
VWXG\ WKDQ LQ WKH SUHYLRXV SHULRGV 2QH VWXG\ WKDW FDPH FORVH LV WKDW RI
*RRUHQ   ZKR ZDV LQ 1LFDUDJXD LQ ² EHIRUH WKH HOHFWLRQV +H
KDV D VPDOO VHFWLRQ RQ 1LFDUDJXD DIWHU WKH HOHFWLRQV ZKLFK VHHPV WR EH
PRVWO\ EDVHG RQ FLWDWLRQV IURP RQOLQH VRXUFHV *RRUHQ IRFXVHV RQ 2UWHJD
6DDYHGUD·V HOHFWLRQ FDPSDLJQ DQG ORRNV VSHFLILFDOO\ DW WKH UHOLJLRXV DVSHFWV
RI LW D ILHOG RI ZKLFK , KDYH PXFK OHVV NQRZOHGJH 7KH SDUW RI KLV VWXG\
WKDW IRFXVHV RQ PRUH JHQHUDO DVSHFWV RI WKH HOHFWLRQ DUH WKH VDPH RQHV
PHQWLRQHG E\ WKH LQWHUQDWLRQDO PHGLD DQG ZKLFK LQ 1LFDUDJXDQ SROLWLFV
IRUP WKH SURSDJDQGD RI WKH 056 7DONLQJ DERXW DQ DOOLDQFH EHWZHHQ 3DUWLGR
/LEHUDO &RQVWLWXFLRQDOLVWD 3/& DQG )6/1 NQRZQ DV ¶HO SDFWR· WR VSOLW DOO
SRVLWLRQV RI SRZHU EHWZHHQ WKHP VLQFH  ZKLOH OHDYLQJ RXW WKDW WKHUH
KDYH EHHQ PDQ\ RWKHU DOOLDQFHV LQ 1LFDUDJXDQ SROLWLFV VLQFH WKHQ PDQ\
RI ZKLFK UXQ FRXQWHU WR WKLV SDUWLFXODU DOOLDQFH VHH DOVR ³ (O SDFWR S  
6RFLDO VFLHQFH OLWHUDWXUH RQ WKH 1LFDUDJXDQ UHYROXWLRQDU\ H[SHULHQFH [[[LLL

DQG JLYLQJ D VNHZHG YLHZ RQ WKH LVVXH RI WKHUDSHXWLF DERUWLRQ VHH DOVR ³
7KHUDSHXWLF DERUWLRQ S  
2WKHU VWXGLHV JR LQWR VSHFLILFV VXFK DV JHQHUDO KHDOWK FDUH %DUWRV]NR
 +HOJKHLP   7KHUH LV D GLIIHUHQFH LQ KRZ WKLV LV GRQH ZKHQ
FRPSDUHG WR VWXGLHV RI WKH V ZKLFK JHQHUDOO\ KDG D SRVLWLYH DQG SDUWLF
LSDWLYH XQGHUWRQH 7KH %DUWRV]NR VWXG\ KDV D JHQHUDOO\ FULWLFDO XQGHUWRQH
LQ KHU SUHVHQWDWLRQ RI WKH VXEMHFW PDWWHU 6KH ZDV LQ 1LFDUDJXD LQ WKH
YHU\ HDUO\ SDUW RI WKH VHFRQG 6DQGLQLVWD JRYHUQPHQW LQ  %DUWRV]NR
VHHV D GLVFUHSDQF\ EHWZHHQ WKH QDWLRQDOLVW 6DQGLQLVWD GLVFRXUVH ZKLFK
SURPRWHV WKH LGHD RI DQ LQFOXVLYH VRFLHW\ DQG D KHDOWK V\VWHP ZKLFK LQ
UHDOLW\ ZRUNV ZLWK SULQFLSOHV WKDW H[FOXGH DQG DUH EDVHG RQ SULQFLSOHV RI
SULYLOHJHV IRU FHUWDLQ JURXSV +HOJKHLP  IRFXVHV RQ WKH PRUH VSH
FLILF LVVXHV FRQFHUQLQJ WKH FKDQJHV LQ WKH OHJDO IUDPHZRUN RI WKHUDSHXWLF
DERUWLRQV LQ  DQG HVSHFLDOO\ WKH 6DQGLQLVWD LQYROYHPHQW ERWK LQ WKH
QHJRWLDWLRQV IRUELGGLQJ LW DQG ODWHU LQ XQGHUPLQLQJ WKH SURKLELWLRQ RI LW
%DUWRV]NR DOVR ZULWHV DERXW DGXOW HGXFDWLRQ DQG WKH UHQHZHG OLWHU
DF\ SURJUDP WKDW ZDV YHU\ LPSRUWDQW WR WKH 6DQGLQLVWD DGPLQLVWUDWLRQ LQ
² 3\WNR  %DUWRV]NR   %DUWRV]NR DUJXHV WKDW ZKLOH OLWHUDF\
SURJUDPV DUH RIIHUHG E\ WKH QHZ 6DQGLQLVWD DGPLQLVWUDWLRQ MXVW DV WKH\
ZHUH LQ WKH V WKH\ DUH QRW VHHQ DV EHLQJ RI DQ\ FRQFUHWH YDOXH WR WKRVH
ZKR UHFHLYH WKHP 3URJUDPV ILOOLQJ PRUH LPPHGLDWH QHHGV DUH VHHQ QRW
DV EHLQJ FRPSOHPHQWDU\ WR WKH OLWHUDF\ FDPSDLJQ EXW UDWKHU DV RSSRVLWHV
7KH SRLQW RI OHDUQLQJ KRZ WR UHDG DQG ZULWH LV ORVW IRU PDQ\ RI WKRVH ZKR
FDQQRW FDSLWDOL]H RQ WKLV NQRZOHGJH LQ WKH IRUP RI DQ DFWXDO MRE
7KH WUDGLWLRQ RI SROLWLFDO VWXGLHV FRQWLQXHV LQ WKH IRUP RI VWXGLHV RI
WKH &3&V %RFKRYH  3DOOPH\HU   %RFKRYH  ZDV SUHVHQW DW
VHYHUDO PHHWLQJV RI WKH &3&V RI /HyQ DQG FRPSDUHV LW ZLWK RWKHU LQVWUX
PHQWV RI GLUHFW GHPRFUDF\ WKDW ZHUH FUHDWHG LQ WKH \HDUV SUHFHGLQJ WKH
6DQGLQLVWD WDNHRYHU DQG VLPLODU LQVWLWXWLRQV LQ %ROLYLD +LV REMHFWLYH LV WR
VHH ZKHWKHU WKH\ GR LQ IDFW EULQJ PRUH GLUHFW GHPRFUDF\ WR WKH ORFDO DQG
PXQLFLSDO OHYHOV RI 1LFDUDJXDQ JRYHUQPHQW +H FRQFOXGHV WKH\ GR LQ IDFW
FKDQJH RQH DVSHFW E\ H[FOXGLQJ IRUHLJQ RUJDQL]DWLRQV IURP SDUWLFLSDWLQJ
LQ WKH VWUXFWXUHV WKH ZD\ SUHYLRXV RUJDQL]DWLRQV KDG DOORZHG $W WKH VDPH
WLPH WKH\ DUH PRUH GLUHFWO\ FRQQHFWHG WR RQO\ RQH SDUW\ WKH )6/1  DQG
WKH IDFW WKDW DW GHSDUWDPHQWR OHYHO WKH\ DUH RUJDQL]HG E\ )6/1 SHUVRQQHO
PDNHV WKHP OHVV GHPRFUDWLF WR %RFKRYH  ²
$OO RI WKHVH VWXGLHV KHOSHG PH HVSHFLDOO\ WKHLU LQYHVWLJDWLYH SDUWV
DQG ILHOG PDWHULDO , PHW %RFKRYH DW D &3& FRQIHUHQFH LQ /HyQ LQ VSULQJ
[[[LY ,QWURGXFWLRQ

 DQG DOWKRXJK , KDYH EHHQ SUHVHQW DW D QXPEHU RI GLIIHUHQW &3& PHHW
LQJV , KDG QRW FRPSDUHG WKHP WR RWKHU VLPLODU LQVWLWXWLRQV , OLYHG ZLWK
+HOJKHLP GXULQJ KHU VWD\ LQ /HyQ ,W ZDV WKURXJK FRQYHUVDWLRQV ZLWK +HO
JKHLP WKDW , ILUVW XQGHUVWRRG KRZ H[DFWO\ WKH 6DQGLQLVWDV XQGHUPLQHG WKH
DQWLDERUWLRQ ODZ WKH\ SDVVHG
(DFK RI WKHVH VWXGLHV IRFXVHV RQ RQO\ RQH LQGLYLGXDO SURJUDP RI WKH
QHZ 6DQGLQLVWD JRYHUQPHQW DQG QRW DOZD\V RYHU D YHU\ ORQJ SHULRG ,
KROG WKDW LW LV RQO\ ZKHQ WDNHQ LQ LWV HQWLUHW\ WKDW FHUWDLQ DVSHFWV RI LQ
FRKHUHQFH DQG JHQHUDO SDWWHUQV RI GHFLVLRQ VWUXFWXUHV ILUVW VKRZ :KLOH
3\WNR  PDNHV UHIHUHQFHV WR DQ RYHUDOO 6DQGLQLVWD GLVFRXUVH WKLV GLV
FRXUVH VKH WDNHV IRU JUDQWHG DQG WKH LQWHUDFWLRQV EHWZHHQ D SDUWLFXODU
DVSHFWV RI SROLF\ RI WKH FXUUHQW JRYHUQPHQW DQG WKH HQWLUHW\ RI 6DQGLQ
LVPR DUH QRW IXUWKHU DQDO\]HG ,Q DOO WKHVH VWXGLHV WKH KLVWRULF SHULRG
DQG HFRQRPLF SRVLWLRQV RI 1LFDUDJXD DUH QRW WDNHQ PXFK LQWR DFFRXQW
QRU DUH WKH IRUPDO DQG LQIRUPDO QHJRWLDWLRQV ZLWK WKH ZRUOG EH\RQG WKH
1LFDUDJXDQ VWDWH ,W LV DV LI 1LFDUDJXD DQG WKH )6/1 DUH IUHH WR GR ZKDWHYHU
WKH\ ZDQW GLVUHJDUGLQJ DQ\ SRZHU VWUXFWXUH WKDW JRHV EH\RQG WKH QDWLRQ
VWDWH
,W LV LQ WKLV DUHD WKDW , FKRRVH WR ORFDWH WKLV VWXG\ ² YLHZLQJ WKH 6DQ
GLQLVWD SURMHFW RU SURMHFWV LQFOXGLQJ DOO LWV SURJUDPV DV RQH JHQHUDO SUR
JUDP IRU VRFLDO FKDQJH 7KH FRPSDULVRQ , VHHN WR PDNH ZLWK WKH 6DQGL
QLVWD SURMHFW RI WKH V LV OHVV FRQFHUQHG ZLWK LQGLYLGXDO GHWDLOV VXFK
DV ZKHWKHU FHUWDLQ JRYHUQPHQW SURJUDPV KDYH FKDQJHG QDPHV RU KDYH
VOLJKWO\ GLIIHUHQW SDUDPHWHUV DV PXFK DV KRZ WKH RYHUDOO ORJLF DFFRUGLQJ
WR ZKLFK WKH\ DUH HPSOR\HG VWUXFWXUHG DQG H[HFXWHG KDV FKDQJHG 3DUWV
RI WKH 6DQGLQLVWD SURMHFW JR EH\RQG SXUH SDUOLDPHQWDU\ GHFLVLRQV DQG SUHV
LGHQWLDO GHFUHHV ZKLFK DUH ODUJHO\ LJQRUHG E\ WKH H[LVWLQJ OLWHUDWXUH ,Q
DQ RYHUDOO DQDO\VLV WKLV SDUW KDV WR EH FRQVLGHUHG
 %GPQR "F?NRCP

1CACLR NMJGRGA?J FGQRMPW MD -GA?P?ES? ?LB RFC

2?LBGLGQR? KMTCKCLR
,Q RUGHU WR XQGHUVWDQG DQ\WKLQJ DERXW WKH 6DQGLQLVWD PRYHPHQW RQH KDV
WR NQRZ VRPHWKLQJ DERXW 1LFDUDJXDQ KLVWRU\ RYHU WKH SDVW  \HDUV 7KLV
LV ZKHQ WKH SROLWLFDO JURXSV WKDW H[LVW WRGD\ ZHUH IRUPHG 'XULQJ P\ WLPH
LQ 1LFDUDJXD LW ZDV IUHTXHQWO\ SRLQWHG RXW WR PH WKDW ZLWKRXW NQRZLQJ
WKLV KLVWRU\ , FRXOG IRUJHW DERXW XQGHUVWDQGLQJ DQ\WKLQJ DERXW ZKDW JRHV
RQ WRGD\ 6XFK D KLVWRU\ FDQ RI FRXUVH EH SUHVHQWHG LQ PDQ\ GLIIHUHQW
ZD\V 7KH IRFXV , SODFH RQ LW KHUH LV WKH RQH WKDW LV HPSKDVL]HG E\ PRVW
6SDQLVKVSHDNLQJ 1LFDUDJXDQV WRGD\ DQG LW LV SUHVHQWHG LQ D ZD\ WKDW ,
EHOLHYH WR EH XQFRQWURYHUVLDO LQ 1LFDUDJXD $GGLWLRQDOO\ , KDYH DGGHG
VRPH SRLQWV DERXW JHQHUDO SROLWLFDO GHYHORSPHQWV RQ D JOREDO VFDOH WKDW
PD\ DLG LQ XQGHUVWDQGLQJ WKH VSHFLILFV LQ 1LFDUDJXD

%HIRUH 
)URP WKH PLGGOH RI WKH WK FHQWXU\ XS XQWLO DW OHDVW WKH V WKH WZR
PDLQ SROLWLFDO JURXSV LQ 1LFDUDJXD ZHUH /LEHUDOV DQG &RQVHUYDWLYHV 0RVW
KLVWRULF FKDUDFWHUV FDQ EH FODVVLILHG DV EHORQJLQJ WR RQH RI WKH WZR JURXSV
$OWKRXJK WKH WHUPV ¶&RQVHUYDWLYHV· DQG ¶/LEHUDOV· RULJLQDWHG LQ (XURSHDQ
SROLWLFDO GLVFRXUVH RQH VKRXOG QRW PLVWDNH WKHP DV QHFHVVDULO\ PHDQLQJ
WKH VDPH DV ZKDW LV FRPPRQ LQ (XURSH 8QWLO WKH V WKH 8QLWHG 6WDWHV
XVXDOO\ IDYRUHG &RQVHUYDWLYH OHDGHUVKLS LQ 1LFDUDJXD DQG LQWHUYHQHG PLO
LWDULO\ VHYHUDO WLPHV RQ WKH &RQVHUYDWLYHV· EHKDOI /LEHUDOV DQG &RQVHUYD
WLYHV ZHUH DQG DUH SROLWLFDO LGHQWLWLHV WKDW DUH QRW DOZD\V GLUHFWO\ OLQNHG WR
VRFLDO FODVV 8QWLO  WKH SUHVLGHQF\ ZHQW EDFN DQG IRUWK EHWZHHQ WKHVH
WZR JURXSV /LEHUDOV DQG &RQVHUYDWLYHV VWLOO H[LVW LQ 1LFDUDJXD DOWKRXJK
WKH JURXS RI /LEHUDOV KDV IUDFWXUHG LQWR VHYHUDO SDUWLHV LQ UHFHQW \HDUV DOO
RI ZKLFK FODLP JHQHUDO DGKHUHQFH WR WKH WUDGLWLRQV RI WKH KLVWRULFDO /LEHUDO
PRYHPHQW
7KH ILUVW QRWDEOH SHUVRQ FRPPHPRUDWHG WRGD\ IRU EHLQJ KLVWRULFDOO\


 7LPHOLQH RI 1LFDUDJXDQ OHDGHUV
² /LEHUDO 3UHVLGHQW -RVp 6DQWRV =HOD\D /ySH]
² $ VHULHV RI &RQVHUYDWLYH DQG /LEHUDO SUHVLGHQWV VHOGRP
UHIHUUHG WR LQ FRPELQDWLRQ ZLWK FRQVWDQW LQWHUYHQWLRQV
E\ WKH 8QLWHG 6WDWHV
² &RQVHUYDWLYH 3UHVLGHQW $GROIR 'tD] 86 0DULQHV
² /LEHUDO 3UHVLGHQW -RVp 0DUtD 0RQFDGD 7DSLD  86
0DULQHV
² /LEHUDO 3UHVLGHQW -XDQ %DXWLVWD 6DFDVD  'LUHFWRU RI WKH
*XDUGLD 1DFLRQDO *1  $QDVWDVLR 6RPR]D *DUFtD
² 'LFWDWRU $QDVWDVLR 6RPR]D *DUFtD
² 'LFWDWRU /XLV $QDVWDVLR 6RPR]D 'HED\OH
² 'LFWDWRU $QDVWDVLR 6RPR]D 'HED\OH
² )LYHSHUVRQ -XQWD RI 1DWLRQDO 5HFRQVWUXFWLRQ -RVp
'DQLHO 2UWHJD 6DDYHGUD )6/1  6HUJLR 5DPtUH] 0HUFDGR
)6/1  0RLVpV +DVVDQ 0RUDOHV )6/1  9LROHWD %DUULRV
7RUUHV GH &KDPRUUR $OIRQVR 5REHOR
² )LYHSHUVRQ -XQWD RI 1DWLRQDO 5HFRQVWUXFWLRQ 2UWHJD
6DDYHGUD )6/1  5DPtUH] 0HUFDGR )6/1  +DVVDQ
0RUDOHV )6/1  $UWXUR &UX] &RQVHUYDWLYH  5DIDHO &yU
GRYD 5LYDV &RQVHUYDWLYH
² 7KUHHSHUVRQ -XQWD RI 1DWLRQDO 5HFRQVWUXFWLRQ 2UWHJD
6DDYHGUD FRRUGLQDWRU )6/1  5DPtUH] )6/1  5LYDV
&RQVHUYDWLYH
² )6/1 3UHVLGHQW 2UWHJD 6DDYHGUD
² 812 3UHVLGHQW %DUULRV 7RUUHV GH &KDPRUUR
² /LEHUDO 3UHVLGHQW -RVp $UQROGR $OHPiQ /DFD\R
² /LEHUDO 3UHVLGHQW (QULTXH -RVp %RODxRV *H\HU
² )6/1 3UHVLGHQW 2UWHJD 6DDYHGUD

$OWKRXJK 'tD] FDOOHG KLPVHOI SUHVLGHQW WKH OHJLWLPDF\ RI KLV SUHVL
GHQF\ LV GLVSXWHG

7KH RIILFLDO SRVLWLRQV RI WKH 6RPR]DV YDU\ DV WKH\ VRPHWLPHV FRQ
WUROOHG WKH FRXQWU\ DV SUHVLGHQWV DQG DW RWKHU WLPHV DV OHDGHUV RI
WKH *XDUGLD 1DFLRQDO *1 

8QLGDG 1LFDUDJHQVH 2SRVLWRUD 812 
6RXUFHV 0LQLVWHULR GH (GXFDFLyQ   3R]DV  


 (YHQWV DQG ILJXUHV RIWHQ UHIHUUHG WR LQ 1LFDUDJXDQ KLVWRU\
 $QGUpV &DVWUR (VWUDGD WKUHZ VWRQHV DW LQYDGHUV IURP
WKH 8QLWHG 6WDWHV
 *HQHUDO %HQMDPtQ )UDQFLVFR =HOHGyQ 5RGUtJXH] IRXJKW
86 WURRSV RFFXS\LQJ 1LFDUDJXDQ WHUULWRU\
² $XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR ZRUNHG LQ RLO VHFWRU
RI 0H[LFR
² &DOGHUyQ 6DQGLQR DQG KLV UHEHO DUP\ WHDPHG ZLWK /LE
HUDOV WR ILJKW &RQVHUYDWLYH DQG 86 IRUFHV
² &DOGHUyQ 6DQGLQR DQG KLV UHEHO DUP\ IRXJKW 86 IRUFHV
E\ WKHPVHOYHV
 &DOGHUyQ 6DQGLQR ZDV NLOOHG GXULQJ SHDFH WDONV ZLWK WKH
'LUHFWRU RI WKH *XDUGLD 1DFLRQDO *1 $QDVWDVLR 6RPR]D
*DUFtD
 /LEHUDO 5LJREHUWR /ySH] 3pUH] NLOOHG E\ 'LFWDWRU $QDVWD
VLR 6RPR]D *DUFtD
 /HyQ VWXGHQWV PDVVDFUHG GXULQJ UDOO\
 /HIWLVW )6/1 IRXQGHG XQGHU WKH QDPH )UHQWH GH /LEHUDFLyQ
1DFLRQDO )/1
 )/1 QDPH FKDQJHG WR )6/1
 )6/1 VSOLW LQWR WKUHH LGHRORJLFDO IDFWLRQV
 )6/1 IRXQGHU &DUORV )RQVHFD $PDGRU NLOOHG
 )6/1 UHXQLWHG DQG WULXPSK RI 5HYROXWLRQDU\ ,QVXUUHF
WLRQ
² )6/1 FRQWURO RI 1LFDUDJXDQ VWDWH DQG VRFLHW\
² .QRZQ DV ¶WKH  \HDUV RI QHROLEHUDOLVP·
 )6/1 UHJDLQHG SRVLWLRQ RI PD\RU RI 0DQDJXD
² )6/1 UHHOHFWHG WR VWDWH SRZHU
6RXUFHV (MpUFLWR GH 1LFDUDJXD   &XHQFD   (YDQV   %DKHQ
DQG +HUQiQGH]   %DUERVD   9DOHQWD   (TXLSR &RUUHR  
3DOPHU   0LQLVWHULR GH (GXFDFLyQ   (TXLSR (QYtR   (TXLSR
(QYtR 1LWOiSDQ D E


 5HFHQW SROLWLFDO KLVWRU\ RI 1LFDUDJXD DQG WKH 6DQGLQLVWD PRYHPHQW

VLJQLILFDQW LV 1LFDUDJXDQ VROGLHU $QGUpV &DVWUR (VWUDGD ZKR IRXJKW ILOL

EXVWHU LQYDGHUV IURP WKH 8QLWHG 6WDWHV LQ  E\ WKURZLQJ VWRQHV DW WKHP
+H LV VHOGRP GHVFULEHG DV FRQQHFWHG ZLWK RQH RI WKH SROLWLFDO JURXSV DO
WKRXJK KH PRVW OLNHO\ ZDV &RQVHUYDWLYH 7KH DFWLRQ KH LV UHPHPEHUHG IRU
LV WKURZLQJ D VWRQH DW RQH RI WKH 86 $PHULFDQV GXULQJ D EDWWOH 7KH VHFRQG
SHUVRQ UHPHPEHUHG WRGD\ LV /LEHUDO 3UHVLGHQW -RVp 6DQWRV =HOD\D /ySH]
ZKR JRYHUQHG 1LFDUDJXD EHWZHHQ  DQG  DQG ZDV UHVSRQVLEOH IRU
WKH FRQVWUXFWLRQ RI D UDLOZD\ DQG IRU GUDIWLQJ D FRQVWLWXWLRQ WKDW JDYH
ZRPHQ WKH ULJKW WR DERUWLRQ LQ WKH FDVH RI D SUHJQDQW ZRPDQ·V OLIH EHLQJ
LQ GDQJHU *HQHUDOO\ KH SURPRWHG D SURJUDP RI PRGHUQL]LQJ 1LFDUDJXDQ
SURGXFWLRQ 7KH WKLUG SHUVRQ RIWHQ UHPHPEHUHG WRGD\ LV WKH UHQHJDGH
JHQHUDO DQG /LEHUDO SROLWLFLDQ %HQMDPtQ )UDQFLVFR =HOHGyQ 5RGUtJXH] ZKR
LQ  IRXJKW DJDLQVW WKH 86 WURRSV RFFXS\LQJ 1LFDUDJXD (MpUFLWR GH
1LFDUDJXD  

$XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR

$XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR  WKH 1LFDUDJXDQ ZKR WKH 6DQGLQLVWD
PRYHPHQW ZDV ODWHU QDPHG DIWHU ZRUNHG LQ WKH 0H[LFDQ RLO VHFWRU LQ
WKH VWDWH RI 9HUDFUX] IRU  \HDUV ,Q  KH UHWXUQHG WR 1LFDUDJXD 1L
FDUDJXD ZDV LQYDGHG VHYHUDO WLPHV E\ 86 0DULQHV DIWHU WKH HQG RI WKH
=HOD\D /ySH] SUHVLGHQF\ DQG LQ  WKH FRXQWU\ ZDV DJDLQ RFFXSLHG E\
WKH 8QLWHG 6WDWHV ZKLFK LQWHUYHQHG LQ DQ HOHFWRUDO LVVXH EHWZHHQ /LEHUDOV
DQG &RQVHUYDWLYHV IDYRULQJ WKH &RQVHUYDWLYHV -DQVHQ  
&DOGHUyQ 6DQGLQR IRXQGHG D VPDOO DUP\ ZKLFK MRLQHG WKH /LEHUDOV LQ
D VWUXJJOH DJDLQVW &RQVHUYDWLYH IRUFHV DQG 86 0DULQHV (MpUFLWR GH 1LFDUD
JXD    ,Q  WKH /LEHUDOV GHFLGHG WR VLJQ D SHDFH WUHDW\ ZLWK 86
IRUFHV DQG &RQVHUYDWLYHV ZKLFK OHW WKH &RQVHUYDWLYHV NHHS WKH SUHVLGHQF\
DQG IRUFHG ERWK VLGHV WR GLVDUP &DOGHUyQ 6DQGLQR UHIXVHG WR DELGH E\
WKH WUHDW\ +H DQG KLV DUP\ FRQWLQXHG ILJKWLQJ DJDLQVW WKH &RQVHUYDWLYH
UHJLPH DQG WKH 86 $PHULFDQ SUHVHQFH LQ 1LFDUDJXD 7KHLU VWDWHG JRDO

 &DOGHUyQ 6DQGLQR ZDV ERUQ ¶$XJXVWR 1LFROiV &DOGHUyQ· EHFDXVH KLV IDWKHU GLG QRW
UHFRJQL]H KLP DV KLV VRQ XQWLO DGROHVFHQFH :KHQ KLV IDWKHU GLG UHFRJQL]H KLP VRFLDOO\
VSHDNLQJ  KH VWDUWHG VLJQLQJ KLV QDPH DV ¶$XJXVWR & 6DQGLQR· DOWKRXJK LQ OHJDO WHUPV KLV
VWDWXV LQ UHODWLRQ WR KLV IDWKHU KDG QRW FKDQJHG +H KDV ODWHU EHHQ UHIHUUHG WR DV ¶$XJXVWR
&pVDU 6DQGLQR· ZKHUHE\ LW LV XQFOHDU ZKHWKHU KH KLPVHOI VWDUWHG XVLQJ WKDW QDPH DURXQG
 RU ZKHWKHU LW ZDV MXVW DVVXPHG WKDW WKH LQLWLDO ¶&· VWRRG IRU &pVDU JLYHQ WKH KLVWRULFDO
SUHFHGHQW RI ¶$XJXVWR &pVDU· LQ WKH 5RPDQ HPSLUH 6iQFKH]  
/HIW $XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR VWDQGLQJ LQ WKH FHQWHU RQ KLV ZD\
WR 0H[LFR ZKHUH KH IRXQG ZRUN DQG SROLWLFDO VXSSRUW LQ WKH V 5LJKW
VRPH GHFDGHV ODWHU $QDVWDVLR 6RPR]D 'HED\OH OHIW DQG KLV EURWKHU /XLV
$QDVWDVLR 6RPR]D 'HED\OH ULJKW UXOHG WKH FRXQWU\ &DOGHUyQ 6DQGLQR ZDV
DVVDVVLQDWHG E\ WKHLU IDWKHU LQ  3KRWRV :LNLPHGLD

ZDV WR PDNH HYHU\ 86 VROGLHU OHDYH WKH FRXQWU\ -DQVHQ   &DOGHUyQ
6DQGLQR DQG KLV PHQ FODLPHG WKHLU VWUXJJOH ZDV ¶DQWLLPSHULDOLVW· DQG WKDW
WKH\ IRXJKW IRU ¶QDWLRQV· ULJKW RI VHOIGHWHUPLQDWLRQ· 7KH JURXS FRQVLVWHG
ODUJHO\ RI SHDVDQWV DQG VRPH RI LWV OHDGHUV ZHUH LOOLWHUDWH ZKLFK OHG WR
PDQ\ GLIILFXOWLHV LQ GHEDWHV RQ WKHRUHWLFDO LVVXHV )RQVHFD $PDGRU 
  ,W LV QRW HDV\ WR GHWHUPLQH ZKHWKHU &DOGHUyQ 6DQGLQR DQG KLV JURXS
VKDUHG DQ RYHUDOO LGHRORJ\ -DQVHQ  )RQVHFD $PDGRU  

6RPR]D
7KH 8QLWHG 6WDWHV OHIW 1LFDUDJXD LQ  DIWHU WUDLQLQJ DQ DUP\ RI 1LFDUD
JXDQV FDOOHG WKH *XDUGLD 1DFLRQDO *1 GXULQJ LWV ODVW \HDU RI RFFXSDWLRQ
$W LWV KHDG WKH 8QLWHG 6WDWHV SXW WKH 1LFDUDJXDQ *HQHUDO $QDVWDVLR ¶7DFKR·
6RPR]D *DUFtD 7KH VWDWHG SODQ RI WKH 8QLWHG 6WDWHV ZDV IRU WKH *1 WR
FRQWURO XSULVLQJV DJDLQVW WKH FRQVWLWXWLRQDO RUGHU (MpUFLWR GH 1LFDUDJXD
   &DOGHUyQ 6DQGLQR ZDV DVVDVVLQDWHG E\ 6RPR]D *DUFtD·V PHQ GXU
LQJ SHDFH WDONV EHWZHHQ WKH *1 DQG &DOGHUyQ 6DQGLQR LQ  ZKLOH WKH
WHUPV IRU WKH GHFRPPLVVLRQLQJ RI &DOGHUyQ 6DQGLQR·V JURXS ZHUH EHLQJ
GLVFXVVHG &DOGHUyQ 6DQGLQR·V DVVRFLDWHV ZHUH WKHUHDIWHU VWURQJO\ VXS
SUHVVHG 7KH UHYROXWLRQDU\ PRYHPHQW GLHG GRZQ IRU VHYHUDO \HDUV DQG
 \HDUV RI GLFWDWRUVKLS FRPPHQFHG 3DOPHU  ² 
6RPR]D *DUFtD XWLOL]HG WKH *1 WR HVWDEOLVK KLPVHOI DV GLFWDWRU DQG KH
IRUPDOO\ WRRN RYHU WKH SUHVLGHQF\ IRU WKH ILUVW WLPH LQ  +H DQG KLV
WZR VRQV UXOHG 1LFDUDJXD XQWLO  DOWKRXJK IRUPDO VKDP HOHFWLRQV ZHUH
KHOG WKURXJKRXW WKH SHULRG RI WKH GLFWDWRUVKLS 0RVW RI WKH WLPH D 6RPR]D
ZDV RIILFLDOO\ SUHVLGHQW ZLWK D IHZ PLQRU LQWHUUXSWLRQV 7KURXJKRXW
WKLV SHULRG RQH RI WKH 6RPR]DV FRQWUROOHG WKH DUPHG IRUFHV 7KLV HUD LV


 5HFHQW SROLWLFDO KLVWRU\ RI 1LFDUDJXD DQG WKH 6DQGLQLVWD PRYHPHQW

QRZ UHIHUUHG WR DV WKH SHULRG RI ¶6RPRFLVPR· 6RPR]D *DUFtD DFWHG DV

GLFWDWRU RI 1LFDUDJXD XQWLO  ZKHQ KH ZDV DVVDVVLQDWHG +LV ILUVW VRQ
/XLV $QDVWDVLR 6RPR]D 'HED\OH ZDV LQ FKDUJH XQWLO  +LV VHFRQG VRQ
$QDVWDVLR ¶7DFKLWR· 6RPR]D 'HED\OH UXOHG 1LFDUDJXD XQWLO  0LQLVWHULR
GH (GXFDFLyQ  
7KH 6RPR]D GLFWDWRUVKLS ZDV EUXWDO ,W LQFOXGHG WRUWXUH DQG H[HFXWLRQ
E\ ILULQJ VTXDG RI SROLWLFDO RSSRVLWLRQ JURXSV ,W ZDV DOVR ULGGOHG ZLWK
FRQWUDGLFWLRQV DV WKH 6RPR]D JRYHUQPHQW UHJXODUO\ EURNH WKH ODZV LW
FUHDWHG ZKHQHYHU LW VHHPHG WKH FRQYHQLHQW ZD\ WR VHFXUH GRPLQDQFH
%RUJH 0DUWtQH]   6RPH FRQWURYHUV\ H[LVWV WRGD\ DV WR ZKHWKHU LW
ZDV UHDOO\ WKH ZLVK RI WKH 8QLWHG 6WDWHV WR HVWDEOLVK D GLFWDWRUVKLS GXULQJ
WKH HDUO\ 6RPR]D \HDUV 7KH RSSRVLQJ DUJXPHQW LV WKDW WKH PDMRULW\ RI
86 SROLFLHV WRZDUG 1LFDUDJXD SRLQWHG WR UHHVWDEOLVKLQJ GHPRFUDF\ XQWLO
 :DVKLQJWRQ HYHQ FXW RII GLSORPDWLF UHODWLRQV ZLWK 1LFDUDJXD IRU
DQ HQWLUH \HDU IURP  WR  86HPEDVV\ SHUVRQQHO ZHUH WROG QRW WR
LQIOXHQFH 1LFDUDJXDQ SROLWLFV )URP  RQ KRZHYHU WKH 8QLWHG 6WDWHV
GLG QRW FRPSODLQ DERXW 6RPR]D DQG VKLIWHG LWV SROLF\ WR VXSSRUWLQJ KLP
RSHQO\ &ODUN  

7KH RUJDQL]DWLRQ RI UHVLVWDQFH DJDLQVW 6RPR]D

7RZDUGV WKH HQG RI WKH SHULRG RI 6RPR]D *DUFtD WKH VWUXJJOH DJDLQVW WKH
GLFWDWRUVKLS FRPPHQFHG 6RPR]D *DUFtD ZDV VKRW DQG NLOOHG E\ WKH 1LFD
UDJXDQ SRHW 5LJREHUWR /ySH] 3pUH] RI WKH GLVVLGHQW /LEHUDO SDUW\ 3DUWLGR
/LEHUDO ,QGHSHQGLHQWH 3/,  LQ  LQ DQ DWWHPSW WR HQG WKH GLFWDWRUVKLS
(YDQV   $QRWKHU RIWHQPHQWLRQHG SDUW RI WKH UHVLVWDQFH DJDLQVW 6R
PR]D LQ WKH HDUO\ \HDUV ZDV D VWXGHQW SURWHVW PDUFK LQ /HyQ RQ  -XO\ 
7KH VWXGHQWV ZHUH SURWHVWLQJ D ¶PDVVDFUH· RI DQRWKHU SURWHVW RUJDQL]HG E\
&RQVHUYDWLYH VWXGHQWV ZKLFK KDG KDSSHQHG MXVW SULRU WR WKDW 7KH /HyQ
SURWHVW PDUFK ZDV DWWDFNHG E\ WKH *1 OHDGLQJ WR IRXU GHDWKV DPRQJ WKH
VWXGHQWV 0DQ]DQDUHV &DOHUR  %DUERVD  
7KH 6RYLHW 8QLRQ LQLWLDOO\ RSSRVHG UHYROXWLRQDU\ DWWHPSWV LQ QRQLQGXV
WULDO VRFLHWLHV ,WV OLQH GXULQJ WKH 6HFRQG :RUOG :DU ::,, ZDV QRW WR DWWDFN
/DWLQ $PHULFDQ JRYHUQPHQWV ZKLFK FRRSHUDWHG ZLWK WKH 8QLWHG 6WDWHV
DQG WKH VWUXJJOH DJDLQVW 1D]L *HUPDQ\ 7KLV SURIRXQGO\ LQIOXHQFHG WKH
SULQFLSOHV RI WKH 3DUWLGR 6RFLDOLVWD 1LFDUDJHQVH 361 ZKHQ LW ZDV IRXQGHG
LQ  )RQVHFD $PDGRU    7KH PRVW IDPRXV 6RPR]DHUD UHYROX
WLRQDU\ &DUORV )RQVHFD $PDGRU ZDV RULJLQDOO\ D PHPEHU RI WKH 361 $IWHU
7KH RUJDQL]DWLRQ RI UHVLVWDQFH DJDLQVW 6RPR]D 

D YLVLW WR &XED IURP  WR  ZKHUH KH DOOHJHGO\ OHDUQHG DERXW JXHU
ULOOD WDFWLFV DQG VWXGLHG DQWLLPSHULDOLVP DQG &DOGHUyQ 6DQGLQR KH DQG
KLV FRQWHPSRUDU\ UHYROXWLRQDULHV GHFLGHG WR EUHDN ZLWK WKH GRFWULQH RI
QRQDJJUHVVLRQ DQG DQ RUJDQL]HG VWUXJJOH DJDLQVW 6RPR]D IRUPHG 3DOPHU
 ² 
,Q  )RQVHFD $PDGRU DQG RWKHU VWXGHQWV IRXQGHG WKH SDUW\ ZKLFK
ODWHU EHFDPH WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1  7KHLU VWDWHG
JRDO ZDV RYHUWKURZLQJ WKH 6RPR]D GLFWDWRUVKLS 'XULQJ WKH ILUVW WZR
\HDUV RI LWV H[LVWHQFH WKH SDUW\ ZDV NQRZQ DV WKH )UHQWH GH /LEHUDFLyQ
1DFLRQDO )/1 9DOHQWD    7KH LGHD WR LQFOXGH WKH QDPH RI &DOGHUyQ
6DQGLQR LQ WKH QDPH RI WKH )6/1 LQ  DOOHJHGO\ FDPH IURP )RQVHFD
$PDGRU $OHJUtD DQG )ODNROO    7RPiV %RUJH 0DUWtQH] ,QWHULRU
0LQLVWHU GXULQJ WKH V DQG RQH RI WKH IRXQGLQJ PHPEHUV RI WKH )6/1
FODLPV WKH LPDJH RI &DOGHUyQ 6DQGLQR ZDV D QDWXUDO KLVWRULF UHIHUHQFH
SRLQW IRU DQ\ UHYROXWLRQDU\ JURXS 7RPiV %RUJH 0DUWtQH] FLWHG LQ $OHJUtD
DQG )ODNROO   ZLWK D VWUDWHJ\ OLNH WKDW RI WKH )6/1

7KH )6/1 GLYLGHG LQWR WKUHH WHQGHQFLHV

7KH )6/1 IRXJKW DQ \HDU FRQWLQXHG VWUXJJOH ODUJHO\ XQGHUJURXQG XQ

WLO LW WRRN RYHU VWDWH SRZHU LQ  )RQVHFD $PDGRU IXQFWLRQHG DV WKH
FKLHI LGHRORJXH RI WKH SDUW\ IRU PRVW RI WKDW WLPH ZLWK DQ LGHRORJ\ RI
FRPELQLQJ SHDVDQWV· DQG ZRUNHUV· VWUXJJOHV )RQVHFD $PDGRU DGYRFDWHG
WKH XQLW\ RI RSSRVLWLRQ WR 6RPR]D DPRQJ UDGLFDOV DQG /LEHUDOV ,Q VRPH
WH[WV )RQVHFD $PDGRU  UHIHUV WR KLPVHOI DV D 0DU[LVW DQG FODLPV WKH
)6/1 UHSUHVHQWHG D 0DU[LVW OLQH ZLWKRXW WKH 0DU[LVW/HQLQLVW EDJJDJH
DVVRFLDWHG ZLWK WKH 361
7KH )6/1 DW ILUVW WULHG WR RUJDQL]H XVLQJ (UQHVWR ¶&KH· *XHYDUD·V VR
FDOOHG IRFRVWUDWHJ\ ,QVWHDG RI VWDUWLQJ E\ RUJDQL]LQJ ODUJH DPRXQWV RI SHR
SOH DPRQJ WKH XUEDQ SUROHWDULDW WKH GLVFRQWHQWHG DQG DOLHQDWHG SHDVDQW
IDUPHUV PDGH IRU DQ HDV\ EUHHGLQJ JURXQG RI LGHRORJLFDOO\FOHDU UHYROX
WLRQDULHV DQG RQFH KDYLQJ JURZQ LQ WKH FRXQWU\VLGH WR D OHYHO ZKHUH VPDOO
DQG PRELOH LQVXUUHFWLRQLVW FHOOV FRXOG DWWDFN WKH *1 LQ VHYHUDO VWUDWHJLFDOO\
LPSRUWDQW SRLQWV RUJDQL]LQJ DQ XUEDQ LQVXUUHFWLRQ ZRXOG EH HDV\ &KLOGV
   ,Q WKH IROORZLQJ \HDUV ² WKH VWUDWHJ\ GLG QRW ZRUN YHU\
ZHOO DQG PDQ\ 6DQGLQLVWDV ZHUH NLOOHG ,Q PRVW FRXQWULHV LQ /DWLQ $PHULFD
VLPLODU PRYHPHQWV ZHUH ZLSHG RXW E\ PLOLWDU\ IRUFHV VXSSRUWHG E\ WKH
8QLWHG 6WDWHV EXW WKH )6/1 PDQDJHG WR VXUYLYH 3DOPHU   
$ SRUWUDLW RI &DUORV )RQVHFD $PDGRU LV XVHG RQ D  SRVWHU FRPPHPRUDW
LQJ  \HDUV VLQFH WKH WULXPSK RI WKH 6DQGLQLVWD UHYROXWLRQ 6RXUFH )6/1


7KH RUJDQL]DWLRQ RI UHVLVWDQFH DJDLQVW 6RPR]D 

,Q WKH ODVW \HDUV EHIRUH WKH  LQVXUUHFWLRQ WKH VWUDWHJLHV DQG LGHROR
JLHV ZLWKLQ WKH )6/1 GLYHUVLILHG DV PRUH SHRSOH MRLQHG 0LUDQGD 2UWHJD
6DDYHGUD DQG *RUPDQ  3HUH]   %HWZHHQ 2FWREHU  DQG 0DUFK
 WKH SDUW\ FRQVLVWHG RI WKUHH LGHRORJLFDO WHQGHQFLHV RU ZLQJV HDFK RI
ZKLFK KDG VOLJKWO\ GLIIHUHQW LGHDV DERXW ZKDW UHYROXWLRQDULHV VKRXOG GR
XQGHU WKH JLYHQ FLUFXPVWDQFHV (TXLSR &RUUHR   

‡ 7KH *XHUUD 3RSXODU 3URORQJDGD *33 WHQGHQF\ WR ZKLFK )RQVHFD

$PDGRU EHORQJHG EHOLHYHG D SURORQJHG VWUXJJOH LQ WKH PRXQWDLQV
LQ FRPELQDWLRQ ZLWK ODERU VWUXJJOH LQ WKH FLWLHV ZRXOG EH WKH RQO\
ZD\ WR VXFFHHG DQG WKDW SHDVDQWV IRUPHG DQ HVVHQWLDO SDUW RI DQ\
UHYROXWLRQDU\ PRYHPHQW ,W UHSUHVHQWHG WKH YLHZV PRVW FORVHO\
UHVHPEOLQJ WKH LQLWLDO LGHRORJ\ RI WKH SDUW\

‡ 7KH 0DU[LVWRUWKRGR[ 7HQGHQFLD 3UROHWDULD 73 DUJXHG WKDW LQ WKH

GHFDGHV DIWHU ::,, 1LFDUDJXD KDG GHYHORSHG FDSLWDOLVP DQG ZLWK
LW DQ XUEDQ SUROHWDULDW KDG JURZQ 7KH\ EHOLHYHG QRZ ZDV WKH WLPH
WR IRFXV RQ WKH FODVVLF 0DU[LVW VWUDWHJ\ RI RUJDQL]LQJ WKH XUEDQ
SUROHWDULDW DQG WKH\ PDLQO\ DLPHG WKHLU RUJDQL]LQJ DW WKLV VHFWRU
RI VRFLHW\

‡ 7KH WKLUG WHQGHQF\ WKH 7HQGHQFLD 7HUFHULVWD 77 WR ZKLFK FXUUHQW

3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD EHORQJHG ZDV IRFXVHG RQ WKH
QHHG IRU LPPHGLDWH DFWLRQ ,W GHIHQGHG WKH SUDFWLFH RI LQVXUUHFWLRQ
LQ WKH FRXQWU\VLGH DQG WKH FLW\ VLPXOWDQHRXVO\ ² DV LW KDG DOUHDG\
EHHQ HVWDEOLVKHG %XW LW GLG VR ZLWKRXW FRPELQLQJ LW ZLWK PRVW RI
WKH LGHRORJLFDO FRQVLGHUDWLRQV WKH RWKHU WZR WHQGHQFLHV HQWHUWDLQHG
0LUDQGD 2UWHJD 6DDYHGUD DQG *RUPDQ  3HUH]  ² 

$Q LQWHUYLHZ ZLWK 2UWHJD 6DDYHGUD KDOI D \HDU EHIRUH WKH WDNHRYHU RI

SRZHU LQ HDUO\  UHYHDOV KRZ IUDJLOH WKH FRDOLWLRQ ZLWKLQ WKH )6/1
ZDV DW WKH WLPH 2UWHJD 6DDYHGUD DUJXHG LQ WKH LQWHUYLHZ WKDW WKH 73
ZDV MXVW D VPDOO JURXS RI DFDGHPLFV TXLWH GLVWDQW IURP WKH LQLWLDO LGHDV
RI WKH )6/1 DQG DOWKRXJK WKH\ ZHUH FORVH WR WKH FHQWHUV RI SURGXFWLRQ
WKH\ VSHQW PRVW RI WKHLU WLPH SURSDJDQGL]LQJ DQG QRW RUJDQL]LQJ $ERXW
WKH *33 2UWHJD 6DDYHGUD VDLG WKH\ ZHUH LVRODWHG LQ WKH PRXQWDLQV DQG
WKH\ GLG QRW KDYH UHDO LQIOXHQFH HLWKHU $FFRUGLQJ WR 2UWHJD 6DDYHGUD
WKH XQLW\ RI WKH )6/1 DW WKH WLPH GHULYHG IURP FRPPRQ DFWLRQV UDWKHU
WKDQ FRPPRQDOLW\ LQ LGHRORJ\ 6LPXOWDQHRXVO\ KH H[SODLQHG WKDW WKH 73
ZDV FRPSODLQLQJ DERXW LQVXUUHFWLRQLVW DFWLRQV RUJDQL]HG E\ WKH 77 EXW
 5HFHQW SROLWLFDO KLVWRU\ RI 1LFDUDJXD DQG WKH 6DQGLQLVWD PRYHPHQW

KH EHOLHYHG WKH\ ZRXOG DFFHSW WKHP ELW E\ ELW 'XULQJ WKH HQWLUH SHULRG
RI WKHLU H[LVWHQFH ² PHPEHUV RI DOO WKUHH WHQGHQFLHV WULHG WR
FRPH XS ZLWK D XQLI\LQJ VWUDWHJ\ 0LUDQGD 2UWHJD 6DDYHGUD DQG *RUPDQ
  
,Q WKH  SXEOLVKHG YHUVLRQ RI &DUORV HO DPDQHFHU \D QR HV XQD WHQWDFLyQ
 &DUORV QRZ WKH GDZQ·V QR IRQG LOOXVLRQ ZKLFK %RUJH 0DUWtQH] RULJLQDOO\
ZURWH ZKLOH LQFDUFHUDWHG LQ  WKH DXWKRU VKRZHG WKDW GLIIHUHQFHV LQ
VWUDWHJLF RXWORRN PDGH XS WKH GLVDJUHHPHQW EHWZHHQ WKH 73 DQG WKH *33
'LVDJUHHPHQWV DOVR H[LVWHG EHWZHHQ WKH OHDGLQJ ILJXUHV RI WKH *33 )RQVHFD
$PDGRU VWDWHG GXULQJ LQWHUQDO PHHWLQJV WKDW WKH LQGXVWULDO ZRUNLQJ FODVV
ZRXOG EH GHVWLQHG WR OHDG D UHYROXWLRQ LI LW ZDV WR EH YLFWRULRXV EXW WKDW
WKH SHDVDQW FODVV VKRXOG QRW EH GLVFRXQWHG GXH WR WKHLU SUHYDOHQFH LQ
FRXQWULHV VXFK DV 1LFDUDJXD )RQVHFD $PDGRU FLWHG LQ %RUJH 0DUWtQH]
 ²  )RQVHFD $PDGRU·V VWDWHPHQW FRXOG MXVW DV ZHOO KDYH EHHQ
PDGH E\ D PHPEHU RI WKH 73 DQG ZDV FRQWURYHUVLDO 7KLV JLYHV VRPH LGHD
DERXW WKH EURDGQHVV RI WKH VFRSH RI WKH WHQGHQFLHV
,Q WKH ODWHU \HDUV RI WKH 6RPR]D UHJLPH RSSRVLWLRQ WR 6RPR]D DOVR
JUHZ DPRQJ VRPH ERXUJHRLV VHFWRUV RI VRFLHW\ 3HGUR -RDTXtQ &KDPRUUR
HGLWRU RI WKH QHZVSDSHU /D 3UHQVD ZDV DUUHVWHG WRJHWKHU ZLWK  RWKHU
FLYLO OHDGHUV IRU FRQVSLULQJ DJDLQVW WKH 6RPR]D JRYHUQPHQW DIWHU FDOOLQJ
WKH  HOHFWLRQV IUDXGXOHQW 7LMHULQR    2Q WKH  'HFHPEHU
 &KDPRUUR VWDUWHG RUJDQL]LQJ D JURXS RSSRVLQJ 6RPR]D 7KH JURXS
LQYROYHG 6RFLDOLVWV /LEHUDOV DQG &RQVHUYDWLYHV 7KH\ DJUHHG RQ WKHLU RSSR
VLWLRQ WR 6RPR]D EXW QRW DOO RI WKHP ZHUH SUHSDUHG IRU LQVXUUHFWLRQ IURP
WKH ERXUJHRLV SDUW RI VRFLHW\ &KDPRUUR ZDV NLOOHG E\ 6RPR]D·V IRUFHV LQ
 7LMHULQR  ²  7KH DOOLDQFH ZLWK RSSRVLWLRQDO SDUWV RI WKH
ERXUJHRLVLH ZDV DOVR SDUW RI 2UWHJD 6DDYHGUD·V SURJUDP 'LIIHUHQW IURP
VRPH RI WKH SURFDSLWDOLVW PRGHUQL]DWLRQ 0DU[LVWV WKLV DOOLDQFH ZDV WR
EH ¶WDFWLFDO DQG WHPSRUDU\· 2UWHJD 6DDYHGUD ZDV DVNHG LQ DQ LQWHUYLHZ
KRZ RQH FRXOG DYRLG WKDW WKH 8QLWHG 6WDWHV ZRXOG VXSSRUW RQH·V FDSLWDOLVW
DOOLDQFH SDUWQHU ZKR ZLWK WKDW KHOS WKHQ FRXOG WDNH FRQWURO HQWLUHO\ RYHU
WKH SURFHVV 2UWHJD 6DDYHGUD DQVZHUHG WKDW WKH DQVZHU ZDV WR DOO\ RQH
VHOI ZLWK FDSLWDOLVWV EXW QRW ZLWK WKH WUDGLWLRQDO FDSLWDOLVW SDUWLHV +HQU\
5XL] VSHDNLQJ IRU WKH *33 DJUHHG EXW EHOLHYHG D SURORQJHG VWUXJJOH ZRXOG
PDNH LW LQ WKH LQWHUHVW RI WKH ERXUJHRLVLH WR GR DZD\ ZLWK ´6RPR]D « D
EDVWLRQ RI LPSHULDOLVPµ³DQG VHW WKH LQWHUHVWV RI WKH QDWLRQDO ERXUJHRLVLH
DJDLQVW WKRVH RI LPSHULDOLVP 0LUDQGD 2UWHJD 6DDYHGUD DQG *RUPDQ 
² 
6DQGLQLVWDV HQWHU 0DQDJXD RQ WRS RI D EXV LQ  $IWHU DQ LQVXUUHFWLRQ
WKDW ODVWHG DOO RI  DQG IRU WKH ILUVW KDOI RI  WKH 6DQGLQLVWDV WRRN
FRQWURO RI WKH FRXQWU\ DV GLFWDWRU $QDVWDVLR 6RPR]D 'HED\OH IOHG 3KRWR
0DUFHOR 0RQWHFLQR

,Q 0DUFK  D FRQIHUHQFH ZDV KHOG LQ +DYDQD &XED LQ ZKLFK WKH

WKUHH WHQGHQFLHV UHXQLWHG (TXLSR &RUUHR   $W WKLV WLPH WKH )6/1 ZDV
JLYHQ D VWUXFWXUH RI QLQH FRPDQGDQWHV ZKR IRUPHG D QDWLRQDO GLUHFWRU\ LQ
ZKLFK HDFK RI WKH WHQGHQFLHV ZDV UHSUHVHQWHG ZLWK WKUHH SHRSOH :LWK
WKDW VWHS WDNHQ WKH WHQGHQFLHV RIILFLDOO\ FHDVHG WR H[LVW 7KH FRPSRVLWLRQ
RI WKH QDWLRQDO GLUHFWRU\ UHPDLQHG WKH VDPH XQWLO WKH V 3HUH] 
 

7KH 6DQGLQLVWD \HDUV ²

,Q -XO\  DIWHU DQ  PRQWK LQVXUUHFWLRQ DJDLQVW WKH GLFWDWRUVKLS RI
6RPR]D 'HED\OH /HRJUDQGH    6RPR]D 'HED\OH IOHG DQG WKH 6DQ
GLQLVWDV WRRN FKDUJH 7KH V ZHUH EHIRUH WKH WDNLQJ RI SRZHU E\ WKH
2UWHJD 6DDYHGUD JRYHUQPHQW LQ  WKH RQO\ WLPH LQ WKH 6DQGLQLVWD PRYH
PHQW·V KLVWRU\ LQ ZKLFK LW KHOG SRZHU DW D QDWLRQDO OHYHO DQG LWV LGHRORJ\
FRQYHUWHG LQWR WKH LGHRORJ\ SURPRWHG E\ WKH VWDWH 7KH 6DQGLQLVWD UHJLPH
ZDV OHG E\ D MXQWD UDWKHU WKDQ D GHPRFUDWLFUHSUHVHQWDWLYH JRYHUQPHQW
GXULQJ WKH ILUVW ILYH \HDUV 7KLV MXQWD ZDV PDGH XS RI WKUHH )6/1 UHSUH
VHQWDWLYHV DQG LQLWLDOO\ WZR ERXUJHRLV DQWL6RPRFLVWDV ,W HVWDEOLVKHG D


 5HFHQW SROLWLFDO KLVWRU\ RI 1LFDUDJXD DQG WKH 6DQGLQLVWD PRYHPHQW

SROLWLFDOO\ OHIWOHDQLQJ EXW QRW IXQGDPHQWDOLVW SRZHU EDVH 3R]DV 

 

)RUHLJQ ,QYROYHPHQW
,QLWLDOO\ 6DQGLQLVWD OHDGHUV WULHG WR IRUJH WLHV WR WKH 86 DGPLQLVWUDWLRQ
LQ RUGHU WR JDLQ DFFHVV WR IXQGLQJ 7KH 8QLWHG 6WDWHV XQGHU WKH UXOH RI
3UHVLGHQW -DPHV (DUO &DUWHU LQLWLDOO\ FRRSHUDWHG WR D YHU\ OLPLWHG H[WHQG
ZKLOH SUHVVXULQJ LWV :HVWHUQ (XURSHDQ DOOLHV LQWR QRW FRRSHUDWLQJ ZLWK
RU VXSSRUWLQJ WKH 1LFDUDJXDQ JRYHUQPHQW 86 OHJLVODWRUV FRPSDUHG WKH
6DQGLQLVWDV LQ 1LFDUDJXD WR WKH &RPPXQLVW 3DUW\ LQ &XED WR H[SODLQ ZK\
WKH\ FRXOG QRW VXSSRUW 1LFDUDJXD XQGHU D 6DQGLQLVWDOHG JRYHUQPHQW
%HUULRV    )URP D 86 $PHULFDQ SHUVSHFWLYH WKH WZR FDVHV ZHUH
VRPHZKDW VLPLODU -XVW DV LQ &XED WKH UHYROXWLRQDULHV LQLWLDOO\ ZHUH QRW
DJDLQVW WKH 8QLWHG 6WDWHV RU RSSRVHG WR FDSLWDOLVP EXW QRQDFFHSWDQFH
DQG ODFN RI DVVLVWDQFH IURP WKH 8QLWHG 6WDWHV OHG WR WKHLU UDGLFDOL]DWLRQ
&DUWHU·V OLPLWHG LQLWLDO VXSSRUW PD\ EH VHHQ DV D ZD\ RI WU\LQJ WR DYRLG D
&XEDQW\SH VLWXDWLRQ /HRJUDQGH   
8QGHU 3UHVLGHQW 5RQDOG 5HDJDQ WKH 8QLWHG 6WDWHV· SRVLWLRQ WRZDUGV
1LFDUDJXD EHFDPH LQFUHDVLQJO\ QHJDWLYH )URP  WR  WKH 8QLWHG
6WDWHV PRUH RU OHVV RSHQO\ WULHG WR RYHUWKURZ WKH 6DQGLQLVWD UHJLPH 7KH
8QLWHG 6WDWHV IXQGHG VRFDOOHG ¶&RQWUDV· ZKR PDLQWDLQHG D FLYLO ZDU DJDLQVW
WKH 6DQGLQLVWDV GXULQJ PXFK RI WKH V 7KRVH LQYROYHG ZLWK WKH &RQWUDV
RIWHQ FODLP WKH )6/1 HVWDEOLVKHG D GLFWDWRUVKLS LQ  +HFN   
5HDJDQ·V VXSSRUW IRU WKH &RQWUDV XOWLPDWHO\ FXOPLQDWHG LQ WKH ,UDQ&RQWUD
DIIDLU LQ ZKLFK WKH 3UHVLGHQW FLUFXPYHQWHG OHJLVODWLRQ GHVLJQHG WR KLQGHU
KLP IURP ILQDQFLQJ WKH &RQWUDV 7KLV SURKLELWLRQ ZDV SXW LQWR SODFH E\
WKH 86 +RXVH RI 5HSUHVHQWDWLYHV 86+5 LQ  /HRJUDQGH  ² 
6WDUWLQJ LQ WKH ODWH V WKH 6RYLHW 8QLRQ LQYLWHG /DWLQ $PHULFD WR
FRRSHUDWH ZLWK WKH &RXQFLO RI 0XWXDO (FRQRPLF $VVLVWDQFH &0($  WKH HFR
QRPLF QHWZRUN ELQGLQJ 6RYLHWDOOLHG FRXQWULHV WRJHWKHU 7KLV DOORZHG IRU
FRXQWULHV UHFHLYLQJ DLG WKURXJK &0($ WR JDLQ JUHDWHU HFRQRPLF LQGHSHQ
GHQFH IURP WKH 8QLWHG 6WDWHV %HUULRV    7KH 6RYLHW 8QLRQ ZDV
QRW RIILFLDOO\ LQYROYHG LQ WKH 1LFDUDJXDQ UHYROXWLRQ DQG RQO\ HVWDEOLVKHG
RIILFLDO FRQWDFW ZLWK WKH )6/1 VKRUWO\ DIWHU WKH WULXPSK RI WKH UHYROXWLRQ
'XULQJ WKH 6RPR]D GLFWDWRUVKLS XQWLO -XO\  1LFDUDJXD DQG WKH
6RYLHW 8QLRQ GLG QRW HQWHUWDLQ SROLWLFDO RU HFRQRPLF UHODWLRQV 'LSORPDWLF
WLHV ZHUH HVWDEOLVKHG RQ  2FWREHU  6RYLHW HPEDVV\ SHUVRQQHO GLG
$ PXUDO LQ /HyQ GHSLFWV WKH FRQIOLFW RI WKH V ² WKH &HQWUDO ,QWHOOLJHQFH
$JHQF\ &,$ LV D VQDNH WKDW GHVWUR\V WKH 6DQGLQLVWD OLWHUDF\ SURJUDP


6ROLGDULW\ SRVWHUV IURP WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5 *HUPDQ
'HPRFUDWLF 5HSXEOLF  6RXUFH ''5 $UFKLY

/HIW 6DQGLQLVWDV OLNH -RVp 'DQLHO 2UWHJD 6DDYHGUD ULVN WKHLU OLYHV LQ D WUDLQ
LQJ FDPS LQ  5LJKW 2UWHJD 6DDYHGUD UXOHV WKH FRXQWU\ DV D PHPEHU RI
WKH -XQWD RI 1DWLRQDO 5HFRQVWUXFWLRQ LQ  7KH 6DQGLQLVWDV ZHQW IURP
EHLQJ D VPDOO UHEHO JURXS WR D VWDWHFRQWUROOLQJ SROLWLFDO SDUW\ LQ YHU\ OLWWOH
WLPH $OVR LQ SKRWR RQ ULJKW 6HUJLR 5DPtUH] 0HUFDGR VWDQGV EHKLQG 2U
WHJD 6DDYHGUD 5DPtUH] 0HUFDGR ZDV DOVR D PHPEHU RI WKH -XQWD ZDV YLFH
SUHVLGHQW ² DQG LQ  FRIRXQGHG WKH RSSRVLWLRQ SDUW\ 0RYLPLHQWR
5HQRYDGRU 6DQGLQLVWD 056  3KRWRV 3HGUR 0H\HU

QRW DUULYH EHIRUH -DQXDU\  ,Q 0DUFK  WKH 6DQGLQLVWD OHDGHUV ZHQW
WR 0RVFRZ IRU WKH ILUVW WLPH DQG VLJQHG FXOWXUDO WHFKQLFDO DQG HFRQRPLF
DJUHHPHQWV ZLWK WKH 6RYLHW 8QLRQ IROORZHG E\ VLPLODU DJUHHPHQWV ZLWK
%XOJDULD &]HFKRVORYDNLD DQG WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5
*HUPDQ 'HPRFUDWLF 5HSXEOLF %HUULRV    7KH DJUHHPHQWV ZHUH
LQ WUDGH DQG LQWHUSHUVRQDO H[FKDQJH ZKLFK JDYH XQLYHUVLW\ VFKRODUVKLSV
WR 1LFDUDJXDQV WR VWXG\ DEURDG DQG DOORZHG IRU SURIHVVLRQDO H[SHUWV WR EH
VHQW WR 1LFDUDJXD IURP (DVWHUQ (XURSH 7KLV UHODWLRQVKLS ODVWHG XQWLO WKH
HOHFWRUDO GHIHDW RI WKH )6/1 LQ 


7KH 6DQGLQLVWD \HDUV ² 

7KH )6/1 VWUXFWXUH

)URP ZRUNLQJ DV D UDWKHU VPDOO RUJDQL]DWLRQ LQ WKH PLG V WKH )6/1
TXLFNO\ FKDQJHG LWV RSHUDWLRQDO PRGHO LQWR WKDW RI D ODUJHU SROLWLFDO SDUW\
ZLWK VLJQLILFDQW SROLWLFDO SRZHU
7KH PRGHUQ FRQFHSW RI SROLWLFDO SDUWLHV ILUVW FDPH LQWR EHLQJ LQ WKH
V $PRQJ VRFLDOLVW DQG VRFLDO GHPRFUDWLF SDUWLHV WZR EDVLF FRQFHSWV
HYROYHG 0DVV SDUWLHV ZKLFK WU\ WR JURZ PHPEHUVKLS DV PXFK DV SRVVL
EOH DQG VPDOO /HQLQLVW 9DQJXDUG PRGHOV /DUJHO\ PDVV SDUWLHV UHVHPEOH
WUDGH XQLRQV LQ WKHLU PHPEHUVKLS DQG DUH PDGH XS RI EURDG SDUWV RI WKH
ZRUNLQJ SRSXODWLRQ 7KHVH SDUWLHV PRVWO\ DFFHSW TXLWH GLIIHUHQW YLHZV
DPRQJ WKHLU PHPEHUV HYHQ RQ WKHLU FRUH LVVXHV 7KH OLIH RI WKH PDMRULW\
RI WKH PHPEHUV RI WKHVH SDUWLHV LV QRW H[FOXVLYHO\ FHQWHUHG DURXQG SDUW\
PHPEHUVKLS 3DUWLHV IROORZLQJ WKH /HQLQLVW YDQJXDUG SDUW\ PRGHO WU\ WR
RQO\ JDWKHU WKH LGHRORJLFDOO\ PRVW VFKRROHG DQG WUDLQHG SHUVRQV ZLWKLQ
WKH SDUW\ 2WKHU VXSSRUWHUV DUH QRW SHUPLWWHG IXOO PHPEHUVKLS VWDWXV 7KH
SURFHVV IRU MRLQLQJ D SDUW\ RSHUDWLQJ DFFRUGLQJ WR WKH /HQLQLVW PRGHO LV
FRPSOLFDWHG DQG PD\ LQYROYH VHYHUDO PRQWKV RU HYHQ \HDUV RI SUREDWLRQ
EHIRUH PHPEHUVKLS VWDWXV LV REWDLQHG /HQLQ  FKDSWHU  
7KH UXOLQJ SDUWLHV LQ WKH 6RYLHW DOOLHG FRXQWULHV DQG VPDOO FRPPXQLVW
SDUWLHV LQ FRXQWULHV WKDW ZHUH DOOLHV RI WKH 8QLWHG 6WDWHV XS XQWLO WKH GLVVR
OXWLRQ RI WKH 6RYLHW 8QLRQ DOO WULHG WR IROORZ WKH YDQJXDUG SDUW\ LQ WKHRU\
ZKLOH 6RFLDO GHPRFUDWLF SDUWLHV LQ WKH ZHVW GXULQJ WKLV SHULRG IROORZHG WKH
PDVV SDUW\ PRGHO 6RPH (DVW (XURSHDQ UXOLQJ SDUWLHV HQGHG XS KDYLQJ D
PHPEHUVKLS LQ WKH PLOOLRQV DQG ZHUH WKHUHIRUH PDVV SDUWLHV DQG YDQJXDUG
SDUWLHV DW WKH VDPH WLPH
7KH )6/1 ZDV VWUXFWXUHG XVLQJ HOHPHQWV RI ERWK PRGHOV VLPLODU WR
KRZ UHYROXWLRQDULHV LQ (O 6DOYDGRU RUJDQL]HG DW WKH WLPH +DUULV   
DQG VLPLODU WR WKH UHYROXWLRQDU\ SDUWLHV LQ &XED DQG *UHQDGD GXULQJ WKH
LQVXUUHFWLRQ SHULRG RI WKH UHYROXWLRQ 7KH )6/1 RSHUDWHG DFFRUGLQJ WR D
UHODWLYHO\ RSHQ PHPEHUVKLS PRGHO EHIRUH WDNLQJ VWDWH SRZHU +DUULV 
  $IWHU WKH LQVXUUHFWLRQ WKH )6/1 WXUQHG WR D YDQJXDUG SDUW\ PRGHO
ZLWK YHU\ OLPLWHG SRVVLELOLWLHV RI MRLQLQJ WKH SDUW\ 7KH SDUW\ ZDV PDGH XS
RI D VHOIVHOHFWHG DQG GLVFLSOLQHG HOLWH RI UHYROXWLRQDU\ FDGUHVPHPEHUV
0DQ\ NH\ SRVLWLRQV LQ WKH VWDWH ZHUH FRQWUROOHG E\ FDGUHV RI WKH SDUW\
7KLV YDQJXDUG SDUW\ ZDV DXJPHQWHG E\ D QHWZRUN RI PDVV RUJDQL]DWLRQV
OLQNHG WR WKH UHYROXWLRQ 7KH 8QLyQ 1DFLRQDO GH $JULFXOWRUHV \ *DQDGHURV
81$* DQG WKH $VRFLDFLyQ GH 7UDEDMDGRUHV GHO &DPSR $7& RUJDQL]HG ODUJHU
$ FRPPRQ VLJKW LQ 1LFDUDJXD  &HOHEUDWLRQV RI WKH  \HDU DQQLYHUVDU\
RI WKH UHYROXWLRQ 3KRWR 7LDUH 6FRWW

JURXSV RI WKH SRSXODWLRQ DQG ZHUH WZR RI WKH PDLQ RUJDQL]DWLRQV ZKLFK
IXOILOOHG WKLV UROH +DUULV   
7KH QHHG WR LQFOXGH GHPRFUDWLF ULJKWV LQ VRFLDOLVW DQWLLPSHULDOLVW
VWUXJJOHV UHFHLYHG D ORW RI DWWHQWLRQ DFURVV /DWLQ $PHULFD LQ WKH V
DQG V 6DQWRV   DIWHU EHLQJ DEVHQW IRU PDQ\ GHFDGHV +DUULV
 ²  'LVFXVVLRQ RQ KRZ WR VHW XS D SROLWLFDO SDUW\ IRFXVHG RQ NHHS
LQJ LQWHUQDO SROLWLFDO VWUXFWXUHV GHPRFUDWLF /RZ\ 0LFKDHO DQG 'HQQHU
$UWKXU  ²  $Q HVVHQWLDO SDUW LQ ZKDW VHW 1LFDUDJXD DSDUW IURP
RWKHU 6RYLHWDOOLHG FRXQWULHV ZDV WKH JRYHUQPHQW·V SRVLWLRQ RQ WKH LVVXH
RI GHPRFUDF\ +R\W    7KH 6DQGLQLVWDV GLG QRW IRUELG RSSRVLWLRQ
SDUWLHV DQG IUHH HOHFWLRQV ZHUH KHOG LQ  DQG  7KH )6/1 KDG D
JRDO RI DOZD\V SHUPLWWLQJ RSSRVLWLRQDO SDUWLHV ZKLOH H[SHFWLQJ WKHVH WR
HYHQWXDOO\ ZKLWKHU DZD\ DV WKH\ EHOLHYHG WKH\ ZRXOG QR ORQJHU IXOILOO D
VRFLDO SXUSRVH %RUJH 0DUWtQH]  ² 

 1LFDUDJXD RIILFLDOO\ IRUPHG SDUW RI WKH QRQDOLJQHG EORF RI FRXQWULHV DQG 2UWHJD
6DDYHGUD   GHVFULEHG LW DV D PLVXQGHUVWDQGLQJ WKDW WKH FRXQWU\ ZRXOG IRUP SDUW
RI WKH 6RYLHW EORF 1HYHUWKHOHVV FRQQHFWLRQV ZLWK WKH 6RYLHW 8QLRQ ZHUH FORVH HQRXJK
IRU RXWVLGH REVHUYHUV WR GHVFULEH WKH FRXQWU\ DV 6RYLHWDOOLHG


7KH )6/1 HOHFWRUDO GHIHDW LQ  

3RSXODU SDUWLFLSDWLRQ DQG GLUHFW GHPRFUDF\

$IWHU WDNLQJ SRZHU EHVLGHV IRFXVLQJ RQ SROLWLFV RI VRFLDO MXVWLFH 6DQGLQ
LVWDV IRFXVHG RQ SROLWLFV RI SRSXODU SDUWLFLSDWLRQ ZKLFK WKH\ WKRXJKW
HVVHQWLDO LQ WKH FUHDWLRQ RI D QHZ W\SH RI VRFLHW\ 2UWHJD 6DDYHGUD   %H
VLGHV WKH 6DQGLQLVWD PDVV RUJDQL]DWLRQV WKHUH ZHUH WKH &RPLWpV GH 'HIHQVD
6DQGLQLVWD &'6V  7KLV LQVWLWXWLRQ RI SRSXODU SDUWLFLSDWLRQ ZDV FUHDWHG
EHIRUH WKH 6DQGLQLVWDV WRRN SRZHU DQG ZLWK WKH UHYROXWLRQDU\ WULXPSK LW
ZDV RUJDQL]HG LQWR JURXSV UHSUHVHQWLQJ EORFNV DQG QHLJKERUKRRGV LQ WKH
HQWLUH FRXQWU\ +R\W    7KH &'6V LQYROYHG LQ WRWDO DURXQG 
SHRSOH ,W PLUURUHG D VLPLODU &XEDQ LQVWLWXWLRQ HPSOR\HG VLQFH WKH V
ZLWK WKH VWDWHG JRDO RI SUHYHQWLQJ EXUHDXFUDWL]DWLRQ RI WKH VWDWH +DUULV
   7KH &'6V ZHUH RUJDQL]HG DV DQ LQVWLWXWLRQ RI GLUHFW GHPRFUDF\
ZLWK WKH PHPEHUV DW WKH EDVH QRW UHSUHVHQWLQJ DQ\RQH RWKHU WKDQ WKHP
VHOYHV (YHU\ERG\ ZDV DOORZHG WR SDUWLFLSDWH YROXQWDU\ 7KH &'6V ZHUH
UHSUHVHQWHG LQ WKH &RQVHMR GH (VWDGR DQG LQWHJUDWHG LQWR WKH GHDOLQJV RI WKH
JRYHUQPHQW DW PLQLVWHULDO OHYHO WKURXJK ¶FRRUGLQDWLQJ FRPPLWWHHV· ,UYLQ
  

7KH )6/1 HOHFWRUDO GHIHDW LQ 

,Q  QDWLRQDO HOHFWLRQV ZHUH KHOG DQG WKH )6/1 ZDV YRWHG RXW RI SRZHU
7KH HOHFWLRQV ZHUH SDUW RI D SHDFH DJUHHPHQW ZLWK VRPH RI WKH JURXSV RI
1LFDUDJXDQV ZKR IRXJKW PLOLWDULO\ DJDLQVW WKH 6DQGLQLVWDV GXULQJ WKH V
9LROHWD %DUULRV 7RUUHV GH &KDPRUUR ZRQ WKH SUHVLGHQF\ DV D OHDGHU RI D
FRDOLWLRQ FDOOHG WKH 8QLGDG 1LFDUDJHQVH 2SRVLWRUD 812 ZKLFK LQFOXGHG 
OHIWZLQJ JURXSV DQG  ULJKWZLQJ SDUWLHV IURP &RQVHUYDWLYH DQG /LEHUDO
RULJLQV VHYHUDO RI ZKLFK DW VRPH OHYHO KDG EHHQ FRRSHUDWLQJ VLQFH WKH
PLGV EXW DW DOO WLPHV IRXJKW EHWZHHQ WKHPVHOYHV 7KH FDPSDLJQ RI
%DUULRV 7RUUHV GH &KDPRUUR ZDV VWURQJO\ VXSSRUWHG E\ WKH 8QLWHG 6WDWHV
DQG VXUSULVLQJO\ ZRQ ZLWK  FRPSDUHG WR 2UWHJD 6DDYHGUD·V  0RVW
6DQGLQLVWDV VHHP WR KDYH WKRXJKW WKDW HOHFWRUDO GHIHDW ZDV LPSRVVLEOH DW
WKDW VWDJH :LWK WKDW WKH HQG RI WKH ZDU ZDV D FHUWDLQW\ DQG  -XQH 
WKH &RQWUDV RIILFLDOO\ HQGHG WKHLU GHPRELOL]DWLRQ )5'  
7KH JRYHUQPHQW FKDQJH LQ 1LFDUDJXD LQ  ZDV RQH RI VHYHUDO FDVHV
LQ ZKLFK WKH 8QLWHG 6WDWHV VXFFHVVIXOO\ RYHUWKUHZ D VRFLDOLVW JRYHUQPHQW
$FFHVV WR DJULFXOWXUDO SURGXFWLRQ DQG GLUHFW IRUHLJQ LQYHVWPHQWV XQGHU
WKH 6DQGLQLVWDV PD\ KDYH FRQVWLWXWHG UHDVRQV IRU LQWHUYHQWLRQ 7KH 1L
7KH 6DQGLQLVWDV ORVW WKH SUHVLGHQWLDO HOHFWLRQV RI )HEUXDU\  WR WKH 8QLGDG
1LFDUDJHQVH 2SRVLWRUD 812  D FRDOLWLRQ JURXS RI  GLIIHUHQW SDUWLHV RI ERWK
ULJKW DQG OHIW 2QH PDLQ SURPLVH RI WKH HOHFWLRQ FDPSDLJQ RI WKH RSSRVLWLRQ
ZDV WKDW WKH\ FRXOG EULQJ SHDFH WR 1LFDUDJXD )5'   3KRWR 81 3KRWR E\
6WHHQ -RKDQVHQ

FDUDJXDQ PDUNHW IRU SURGXFWV IURP WKH 8QLWHG 6WDWHV ZDV IDLUO\ OLPLWHG
GXH WR WKH RYHUDOO OHYHO RI SRYHUW\ $Q DGGLWLRQDO UHDVRQ IRU LQWHUYHQWLRQ
PD\ KDYH EHHQ WKH IHDU RI D 6DQGLQLVWDOLNH LGHRORJ\ VSUHDGLQJ WR QHLJK
ERULQJ &HQWUDO $PHULFDQ UHSXEOLFV LQ ZKLFK UHYROXWLRQDU\ PRYHPHQWV
IRUPHG VLPXOWDQHRXVO\ ZLWK WKH IRXQGLQJ RI WKH )6/1 LQ 1LFDUDJXD 7KLV
FRXOG KDYH DQ HIIHFW RQ 0H[LFDQ SROLWLFV DQG ZLWK WLPH WKH 6RYLHW 8QLRQ
FRXOG SRVVLEOH KDYH EHHQ DEOH WR EXLOG DQ DOWHUQDWLYH WR WKH 3DQDPD &DQDO
WKURXJK 1LFDUDJXDQ WHUULWRU\ 7KLV ZLOO DOZD\V UHPDLQ PHUH VSHFXODWLRQ
DV ORQJ DV ILOHV RQ WKH DQDO\VLV E\ WKH 8QLWHG 6WDWHV RI WKH 6DQGLQLVWDV DUH
LQDFFHVVLEOH

,Q WKH HDUO\ V VRFLDOLVW UHJLPHV LQ (DVWHUQ (XURSH ZHUH QRW UH
SODFHG E\ 86 DOOLHG SXSSHW GLFWDWRUVKLSV ZLWK RUGHUV RULJLQDWLQJ GLUHFWO\
LQ :DVKLQJWRQ WKH ZD\ 8QLWHG 6WDWHV KLVWRULFDOO\ KDG GRQH 7KH FRXQ
WULHV ZHUH WXUQHG LQWR DOOLHV E\ LQWHJUDWLQJ WKH FRXQWU\·V OHDGHUV ZLWK WKH
LQWHUQDWLRQDOL]HG JOREDO HOLWH (OLWLVW DQG OLEHUDO EXW GHPRFUDWLF UHJLPHV
ZHUH SXW LQ SODFH DQG IRUPDO GHPRFUDWLF VWDWH DSSDUDWXVHV HVWDEOLVKHG
([WHQVLYH LGHRORJLFDO UKHWRULF ZDV HPSOR\HG RQ WKH SRSXODU FODVVHV WR


(OGD 8UL 6DQFKH] DJH  ZDV WKH YLFWLP RI D &RQWUD SODFHG PLQH LQ URDG QHDU
3DQWDVPD -LQRWHJD RQ  2FWREHU²1RYHPEHU  7KH ZDU DJDLQVW WKH
&RQWUDV JUHZ LQFUHDVLQJO\ XQSRSXODU GXULQJ WKH V DQG WKH SURVSHFW RI
HQGLQJ LW E\ YRWLQJ IRU WKH RSSRVLWLRQ LV RIWHQ PHQWLRQHG DV WKH PDLQ IDFWRU
WKDW PDGH SHRSOH GHFLGHG QRW WR YRWH IRU WKH 6DQGLQLVWDV LQ  3KRWR
:LWQHVV IRU 3HDFH

FKDQJH WKHLU DVSLUDWLRQV DQG GUHDPV WR EH LQ OLQH ZLWK WKDW RI ZHVWHUQ

FRXQWULHV ,Q WKH ZHVWHUQ KHPLVSKHUH WKH VDPH VWUDWHJ\ ZDV XVHG RQ ERWK
1LFDUDJXD DQG +DLWL 7KH 8QLWHG 6WDWHV VHHPV WR KDYH VRXJKW WR FRQWURO
WKHVH FRXQWULHV WKURXJK REWDLQLQJ KHJHPRQ\ LQ FLYLO VRFLHW\ 5RELQVRQ
 ² 
7KH 6DQGLQLVWDV QHJRWLDWHG D WUHDW\ ZLWK 3UHVLGHQW %DUULRV 7RUUHV GH
&KDPRUUR WR NHHS WKH OHDGHU RI WKH DUP\ +XPEHUWR 2UWHJD IRU KDOI KHU
JRYHUQLQJ SHULRG XQWLO  %DUULRV 7RUUHV GH &KDPRUUR ZDV RQO\ DEOH
WR JRYHUQ EHFDXVH VKH PDGH GHDOV ZLWK WKH 6DQGLQLVWDV 6KH VWDUWHG WR
SULYDWL]H PDQ\ VHUYLFHV DQG DEROLVKHG WKH 1LFDUDJXDQ UDLOZD\ V\VWHP
7KH QH[W SUHVLGHQW -RVp $UQROGR $OHPiQ /DFD\R ²  ZDV YHU\
DQWL6DQGLQLVWD ,W LV VDLG KH UHTXLUHG SXEOLF HPSOR\HHV WR HQUROO LQ KLV 3DU
WLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/&  7KH 3UHVLGHQW RI WKH 8QLWHG 6WDWHV %LOO
&OLQWRQ VXVSHQGHG DLG WR 1LFDUDJXD DIWHU D KXUULFDQH GXULQJ WKH $OHPiQ
/DFD\R \HDUV ZKHQ LW ZDV GLVFRYHUHG WKH DLG QHYHU UHDFKHG LWV ILQDO GHVWL
QDWLRQ 3UHVLGHQW (QULTXH -RVp %RODxRV *H\HU ² ZDV YLFHSUHVLGHQW
XQGHU $OHPiQ /DFD\R EXW RQFH KH WRRN RYHU DV SUHVLGHQW %RODxRV *H\HU
FKDUJHG $OHPiQ /DFD\R ZLWK IUDXG 7KH )6/1 DW ILUVW KHOSHG %RODxRV *H\HU
UHPRYH $OHPiQ /DFD\R·V LPPXQLW\ EXW WKHQ RQFH WKH 3/& VSOLW RYHU WKH


$IWHU WKH RSSRVLWLRQ ZRQ WKH HOHFWLRQV RI )HEUXDU\ LQ 0DUFK  WKH 8QLWHG
1DWLRQV 6HFXULW\ &RXQFLO 816& YRWHG WR VHQG DUPHG SHUVRQQHO WR DLG WKH
GHPRELOL]DWLRQ HIIRUWV RI WKH 1LFDUDJXDQ &RQWUDV 81   %\  -XQH 
WKH GHPRELOL]DWLRQ KDG RIILFLDOO\ EHHQ FRPSOHWHG )5'   3KRWR 81 3KRWR
E\ 6WHHQ -RKDQVHQ

LVVXH DQG $OHPiQ /DFD\R ZDV LQ SULVRQ VZLWFKHG EDFN DQG IRUWK EHWZHHQ
$OHPiQ /DFD\R DQG %RODxRV *H\HU YRWLQJ ZLWK WKH SDUW\ RI HLWKHU RQH
GHSHQGLQJ RQ WKH LVVXH 0LQLVWHULR GH (GXFDFLyQ  

$W VRPH SRLQW LQ WKH V DV D SURGXFW RI WKH 6DQGLQLVWDV WU\LQJ

GLIIHUHQW VWUDWHJLHV WR FRQWLQXH WR H[HUW SRZHU LW VHHPV WKH 6DQGLQLVWD
PRYHPHQW JUHZ LQWR D PRUH GLYHUVLILHG JURXS ZLWK VHYHUDO LQGLYLGXDOV
DQG VXEJURXSV HDFK FRRUGLQDWLQJ WKHLU RZQ SURMHFWV LQGHSHQGHQWO\ RI
WKH )6/1 OHDGHUVKLS ,Q D  LQWHUYLHZ 2UWHJD 6DDYHGUD GHVFULEHG WKH
SDUW\ DV ORRNLQJ OLNH DQ ¶DQDUFKLVW SDUW\· ² DSSDUHQWO\ PHDQLQJ WKDW LW
ZDV IXOO RI KLJKO\ VWXGLHG EXW QRW DOZD\V DJUHHLQJ DFWLYLVWV ZKR QRZ UDQ
WKHLU YDULRXV SURMHFWV UHODWLYHO\ LQGHSHQGHQWO\ +H DGPLWWHG WKH ¶PDUNHG
FRQWUDGLFWLRQV· RI FODVV LQ VRFLHW\ UHIOHFWHG LQ WKH )6/1 ² VRPH RI WKH )6/1
PHPEHUV ZHUH QRZ WR EH FRXQWHG DV SDUW RI WKH XOWUD ULFK *D\QRU   ,
XQGHUVWRRG ZKDW 2UWHJD 6DDYHGUD PHDQW DIWHU YLVLWLQJ VHYHUDO SURMHFWV³RI
ODQG JUDEEHUV RU JURXSV RUJDQL]LQJ FKLOGUHQ·V DFWLYLWLHV³RUJDQL]HG E\
6DQGLQLVWDV DQG LQ WKH QDPH RI 6DQGLQLVPR EXW ZLWKRXW WKH SDUW\ IRUPDOO\
EHLQJ DZDUH RI WKHLU H[LVWHQFH


7KUHH GLIIHUHQW SUHVLGHQWV UXOHG 1LFDUDJXD ZKLOH WKH 6DQGLQLVWDV ZHUH LQ
WKH RSSRVLWLRQ OHIW WR ULJKW  9LROHWD %DUULRV 7RUUHV GH &KDPRUUR ² 
-RVp $UQROGR $OHPiQ /DFD\R ² DQG (QULTXH -RVp %RODxRV *H\HU
3KRWR :LNLPHGLD 3KRWR E\ 2OLTXH] 2$6 3KRWR E\ 5REHUWR 5LEHLUR 2$6 3KRWR E\
-XDQ 0DQXHO +HUUHUD

7KH )6/1 DV DQ RSSRVLWLRQ IRUFH

,Q WKH \HDUV DIWHU WKH )6/1 ORVW SRZHU WKH FRQFHSW RI WKH YDQJXDUG SDUW\
ZDV TXHVWLRQHG ,Q  D SRZHU VWUXJJOH EHWZHHQ DQ RUWKRGR[ SUR
YDQJXDUG IDFWLRQ DURXQG 2UWHJD 6DDYHGUD ZRQ DJDLQVW D IDFWLRQ ZKLFK
FODLPHG WKH\ ZDQWHG WR FKDQJH WKH SDUW\ VR LW ZRXOG EH D PRUH RSHQ DQG
DQ HOHFWRUDOO\ RULHQWHG SDUW\ $IWHU 2UWHJD 6DDYHGUD ZRQ WKH RSSRVLQJ
IDFWLRQ ORVW WRS SRVWV LW KHOG LQ WKH SDUW\ QHZVSDSHU %DUULFDGD 6LQFH 
WKH SDSHU RSHUDWHG UDWKHU LQGHSHQGHQWO\ RI WKH SDUW\ -RQHV  
7KH ORVLQJ IDFWLRQ VWDUWHG D QHZ SROLWLFDO SDUW\³WKH 0RYLPLHQWR 5HQR
YDGRU 6DQGLQLVWD 056 ³ZKLFK LQ WKHRU\ ZDV WR EH PRUH RSHQ WR DOOLDQFHV
ZLWK RWKHU SROLWLFDO JURXSV GHYRLG RI YDQJXDUG FRQFHSWV 6PLWK  
DQG PRUH RI D SDUW\ RI WKH VRFLDO GHPRFUDWLF NLQG 0RVW RI WKH )6/1 PHP
EHUV RI WKH QDWLRQDO DVVHPEO\ OHIW WKH )6/1 DQG MRLQHG WKH 056 ,Q WKH
QH[W HOHFWLRQV LQ  WKH )6/1 ZRQ PDQ\ PRUH PHPEHUV RI WKH QDWLRQDO
DVVHPEO\ WKDQ WKH 056 2WKHU WKDQ WKHVH IHZ \HDUV WKH )6/1 DOZD\V KHOG
D VXEVWDQWLDO QXPEHU RI PHPEHUV RI WKH QDWLRQDO DVVHPEO\ 7KHVH PHP
EHUV RI WKH QDWLRQDO DVVHPEO\ ZHUH HVVHQWLDO IRU ILQGLQJ PDMRULWLHV IRU HDFK
RI WKH WKUHH /LEHUDO SUHVLGHQWV $GGLWLRQDOO\ WKH )6/1 FRQWLQXHG WR KROG
VXEVWDQWLDO SRZHU LQ ODERU XQLRQV DQG XQWLO  LQ RWKHU PDVV RUJDQL]D
WLRQV 'XULQJ WKLV SHULRG WKH )6/1 FRXOG WKHRUHWLFDOO\ VWRS RUGHUV PDGH
E\ DQ\ RQH RI WKH /LEHUDO SUHVLGHQWV (DFK RQH RI WKH /LEHUDO SUHVLGHQWV


,Q HDUO\ -DQXDU\  0DUtD (OHQD %XVWLOOR OHIW DQG KHU VRQ VKRZ PH
WKH SRRU DUHD ZKHUH WKH\ OLYH LQ VRXWKHUQ /HyQ IDU DZD\ IURP WKH ULFK
GRZQWRZQ QHLJKERUKRRGV D IHZ GD\V EHIRUH WKH UHWXUQ RI -RVp 'DQLHO 2UWHJD
6DDYHGUD WR WKH SUHVLGHQF\ 1LFDUDJXD KDG VHYHUH SUREOHPV RI SRYHUW\ DQG
LQFRPH GLVSDULW\ GXULQJ WKH \HDUV RI /LEHUDO JRYHUQPHQWV DQG WKH\ WHOO PH
RI WKHLU KRSH WKDW WKLV ZLOO FRPH WR DQ HQG QRZ

FRPPLWWHG WR VLJQLQJ D QXPEHU RI SROLWLFDO FRQWUDFWV ZLWK WKH )6/1 RYHU

WKH \HDUV LQ RUGHU WR DYRLG VXFK LQWHUIHUHQFHV 6PLWK  
,Q  WKH )6/1 QHZVSDSHU %DUULFDGD FORVHG GRZQ EHFDXVH WKH JRY
HUQPHQW GHFLGHG QRW WR IXQG DGYHUWLVHPHQW LQ LW DQ\ ORQJHU *RYHUQPHQW
DGYHUWLVHPHQW DFFRXQWV IRU  RI DOO DGYHUWLVHPHQW LQ 1LFDUDJXD 7KH
VWDWH DFWLQJ DV D PDMRU DGYHUWLVHU LV YHU\ FRPPRQ LQ &HQWUDO $PHULFD $OO
QHZVSDSHUV KDYH H[SHULHQFHG D VKDUS GHFOLQH VLQFH  %HWZHHQ 
DQG  WKH QXPEHU RI QHZVSDSHUV VROG IHOO IURP  SHU  LQKDELWDQWV
WR  SHU  LQKDELWDQWV 0XFK RI WKLV ZDV GXH WR RYHUDOO HFRQRPLF SURE
OHPV 7KH OLWHUDF\ UDWH IHOO IURP  LQ WKH V WR  LQ  /RFDO
FRPSDQLHV ZHUH GUDLQHG RI FDSLWDO DQG FRXOG QRW LQYHVW 7KH IHZ SHR
SOH VWLOO UHDGLQJ WKH DGYHUWLVHPHQWV ZHUH WRR SRRU WR EX\ PRVW SURGXFWV
.RGULFK  ² 
,W LV ZLGHO\ UHSRUWHG DIWHU ORVLQJ WKH HOHFWLRQV RI  2UWHJD 6DDYHGUD
PHW ZLWK DOO WKH VROLGDULW\ JURXSV DQG WROG WKHP WR FRQWLQXH WR KHOS EXW WR
VWRS VHQGLQJ WKH KHOS WR WKH JRYHUQPHQW DQG VHQG LW WR D QHW RI 6DQGLQLVWD
GRPLQDWHG 1*2V FUHDWHG IRU WKDW SXUSRVH DQG WR VHQG LW WR WKH DOUHDG\
H[LVWLQJ ¶PDVV RUJDQL]DWLRQV· 7KH 1*2V FRQVLVW PRVWO\ RI SURIHVVLRQDOV


7KH )6/1 HOHFWRUDO YLFWRU\  

DQG YHU\ VHOGRP GR WKH\ SXEOLFO\ SRUWUD\ WKHLU 1*2 DV EHLQJ SDUW RI WKH
6DQGLQLVWD PRYHPHQW 7KH LQWHUQDO FRPPXQLFDWLRQ QHWZRUN EHWZHHQ
)6/1 6DQGLQLVWD PDVV RUJDQL]DWLRQV DQG 6DQGLQLVWD 1*2V ZDV IUHTXHQWO\
PRELOL]HG LQ RUGHU WR VWRS WKH /LEHUDO JRYHUQPHQWV IURP DFWLQJ FRQWUDU\
WR 6DQGLQLVWD LGHRORJ\ 7KLV DSSURDFK IDPRXVO\ FDOOHG ¶JRYHUQLQJ IURP
EHORZ· LV ZKDW WKH 6DQGLQLVWDV FODLP WR KDYH GRQH GXULQJ WKH  \HDUV
RI QHROLEHUDOLVP 7KH WLHV EHWZHHQ )6/1 DQG PDVV RUJDQL]DWLRQV ZHUH
RIILFLDOO\ JLYHQ XS LQ  )RQW   

7KH )6/1 HOHFWRUDO YLFWRU\ 

,Q WKH IDOO RI  WKH )6/1 ZRQ WKH SUHVLGHQWLDO HOHFWLRQV IRU WKH ILUVW WLPH
VLQFH  DQG 2UWHJD 6DDYHGUD LV LQDXJXUDWHG DV SUHVLGHQW RQ  -DQXDU\
 +H GLG QRW ZLQ D PDMRULW\ RI YRWHV WR EHFRPH SUHVLGHQW 2QO\ 
YRWHG IRU 2UWHJD 6DDYHGUD DFFRUGLQJ WR WKH RIILFLDO FRXQW 7KDW LV OHVV WKDQ
KH UHFHLYHG LQ SUHYLRXV HOHFWLRQV ,Q   YRWHG IRU 2UWHJD 6DDYHGUD
  7KH ILJXUH IRU  LV  DQG IRU   (DFK RI WKH
QDWLRQDO HOHFWLRQV RI 1LFDUDJXD LQ WKRVH HOHFWLRQV ZDV ZRQ E\ D /LEHUDO
FDQGLGDWH (TXLSR (QYtR  (TXLSR (QYtR 1LWOiSDQ  D 
3DUW RI WKH H[SODQDWLRQ IRU WKH HOHFWRUDO YLFWRU\ LQ  ZDV D FRP
ELQDWLRQ RI D VSOLW YRWH DPRQJ /LEHUDO YRWHUV EHWZHHQ WKH FDQGLGDWHV RI
WKH $OLDQ]D /LEHUDO 1LFDUDJHQVH $/1  DQG WKH 3/&  &RQVHMR
6XSUHPR (OHFWRUDO   7KH RWKHU SDUW ZDV WKH HOHFWRUDO UHIRUP LQ WKH
 7KH UHIRUP DGGHG D VSHFLDO SURYLVLRQ WKDW VSHFLILHG LQ WKH FDVH RI
RQH FDQGLGDWH JDLQLQJ DW OHDVW  PRUH WKDQ WKH VHFRQG EHVW VFRULQJ FDQ
GLGDWH RQO\  RI WKH WRWDO YRWH DUH QHHGHG LQ RUGHU WR EH DEOH WR GHFODUH
YLFWRU\ 3UHYLRXVO\  RI WKH WRWDO YRWH ZHUH QHHGHG WR JDLQ WKH SUHV
LGHQF\ ZLWKRXW D VHFRQG URXQG 7KH UHIRUP ZDV SXVKHG WKURXJK E\ D
SHUPDQHQW DOOLDQFH RI 3/& DQG )6/1 DV SDUW RI DQ DJUHHPHQW WR VSOLW DOO
PDMRU SRVWV LQ WKH FRXQWU\ LQEHWZHHQ WKHP 7KLV SROLWLFDO PDQHXYHU LV
NQRZQ DV ¶HO SDFWR· /D 3UHQVD  (TXLSR (QYtR 1LWOiSDQ D  7DNHQ
WRJHWKHU DQG LI WKH HOHFWLRQ UHVXOWV RI  ZHUH QRW PDQLSXODWHG WKH )6/1
HOHFWRUDO YLFWRU\ RI  ZDV RQO\ GXH WR D ODFN RI XQLW\ DPRQJ /LEHUDOV
DQG DGYDQFHG SROLWLFDO QHJRWLDWLQJ RQ WKH SDUW RI WKH )6/1 DQG QRW GXH WR
LQFUHDVHG SRSXODU VXSSRUW RI 2UWHJD 6DDYHGUD DQG WKH )6/1
3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD ULJKW RQ WRS RI FDU DQG KLV ZLIH
5RVDULR 0XULOOR OHIW RI 2UWHJD 6DDYHGUD DUH RQ WKH FDPSDLJQ WUDLO LQ 
3KRWR -RVp *DUWK 0HGLQD

6XEMHFWLYH DVSHFWV RI WKH KLVWRU\ DV LW LV SUHVHQWHG

7KH SROLWLFDO KLVWRU\ RI 1LFDUDJXD DV SUHVHQWHG DERYH LV DQG FDQQRW EH
FRPSOHWH DV QR KLVWRU\ FDQ HYHU EH FRPSOHWH , PHQWLRQ WKH HYHQWV ,
EHOLHYH PRVW LPSRUWDQW WR WKH 1LFDUDJXDQV , VSRNH WR ,W LV D VLPSOLILHG
YHUVLRQ LQ WKDW PRVW 1LFDUDJXDQV DUH DEOH WR OLVW D PXFK ORQJHU OLVW RI
KLVWRULFDO HYHQWV WKDW DUH LPSRUWDQW WR WKHP 6RPH RI WKH FRPPHPRUDWLRQ
FHOHEUDWLRQV DUH RQO\ KHOG ORFDOO\ LQ D FHUWDLQ YLOODJH RU FLW\ 7KHVH DUH
PRVWO\ OHIW RXW SDUWLDOO\ GXH WR ODFN RI DZDUHQHVV RI DOO DQG IRU UHDVRQV
RI VSDFH +LVWRU\ GRHV ILJXUH SURPLQHQWO\ LQ PDQ\ DVSHFWV RI 1LFDUDJXDQ
VRFLDO OLIH DQG LQ DOO WKH IROORZLQJ FKDSWHUV ZH ZLOO ORRN DW WKLV SKHQRPHQRQ
PRUH FORVHO\


 2CAMLB "F?NRCP

3FC NMJGRGAQ MD FGQRMPW

,Q WKH SUHFHGLQJ FKDSWHU ZH ORRNHG DW VRPH RI WKH KLJKOLJKWV RI WKH SDVW

FHQWXU\ LQ 1LFDUDJXD ,Q WKLV FKDSWHU ZH ZLOO ORRN DW KRZ WKLV KLVWRU\
LV VHHQ E\ GLIIHUHQW JURXSV RI 1LFDUDJXDQV 7KH VDPH HYHQW FDQ EH VHHQ
LQ VHYHUDO GLIIHUHQW ZD\V 2WKHU HYHQWV DUH IRFXVHG XSRQ RQO\ E\ RQH RU
D IHZ JURXSV 6RPHWLPHV LW LV SRVVLEOH WR VHH WKH VDPH HYHQW DV KDYLQJ
EHHQ FDXVHG E\ HLWKHU 1LFDUDJXDQV RU QRQ1LFDUDJXDQV ,Q PRVW FDVHV
WKH YHUVLRQ ZKLFK HPSKDVL]HV 1LFDUDJXDQ KLVWRULFDO DJHQF\ LV SUHIHUUHG
E\ DOO 1LFDUDJXDQ JURXSV , PHW HYHQ WKRXJK WKH\ GLVDJUHH RQ PRVW RI
HYHU\WKLQJ HOVH

, ZLOO KHUH JLYH DQ RYHUYLHZ RI WKH GLVFXVVLRQ DERXW SROLWLFDO KLVWRU\

DQG KLVWRULFDO DJHQF\ LQ 1LFDUDJXD 7KH WHUP ¶KLVWRULFDO DJHQF\· KDV EHHQ
XVHG LQ YDULRXV ZD\V ZLWKLQ WKH ILHOG RI DQWKURSRORJ\ , XVH WKH WHUP LQ
WKH ZD\ *UDHEHU GHILQHV LW ´WKH FDSDFLW\ WR PDNH KLVWRU\µ ZLWK KLVWRU\
GHILQHG DV ´WKH UHFRUG RI WKRVH DFWLRQV ZKLFK DUH QRW VLPSO\ F\FOLFDO UHSHW
LWLYH RU LQHYLWDEOHµ *UDHEHU   7KH XQGHUVWDQGLQJ HPSOR\HG KHUH LV
JHQHUDOO\ ORRNLQJ DW DJHQF\ RQ WKH OHYHO RI WKH LQGLYLGXDO :KDW LW PHDQV
WR KDYH ¶SRZHU· LV D ELW PRUH FRPSOLFDWHG +DYLQJ KLVWRULFDO DJHQF\ LP
SOLHV SRZHU WKH ZD\ LW LV XVHG LQ 1LFDUDJXD EXW DOVR FRXQWULHV RU JURXSV
RU IRUHLJQ LQGLYLGXDOV FDQ KDYH SRZHU ZLWKRXW KDYLQJ KLVWRULFDO DJHQF\
LQ WKDW ZKDW WKH\ GR LV QRW LQIOXHQFLQJ WKH FRXUVH RI KLVWRU\ EXW UDWKHU
PDNHV LW VWD\ RQ LWV LQHYLWDEOH FRXUVH 7KDW LV ZKDW , KHUH FKRRVH WR FDOO
WKDW WKH\ DFW ¶PHFKDQLFDOO\·

)RU WKLV FKDSWHU , GUDZ ILUVW DQG IRUHPRVW XSRQ WKH JHQHUDO SROLWLFDO
MRXUQDOLVP , XQGHUWRRN ZKLFK JDYH PH DQ LQVLJKW LQWR KRZ QRQ6DQGLQLVWDV
WHQG WR H[SODLQ KLVWRULF UHDOLWLHV DQG , FRQGXFWHG LQWHUYLHZV ZLWK ROG UHYR
OXWLRQDU\ ILJKWHUV ZKR VWDUWHG WKH RUJDQL]DWLRQ ¶$PLJRV· DV WKH\ WHQGHG WR
EH WKH PRVW WKRURXJK LQ WKHLU H[SODQDWLRQV RI WKH UHFHQW KLVWRULF UHDOLWLHV
RI 1LFDUDJXD


 7KH SROLWLFV RI KLVWRU\

:KDW SDUWV RI 1LFDUDJXDQ KLVWRU\ DUH LPSRUWDQW"

:KLOH 1LFDUDJXD KDV D FRORQLDO SDVW MXVW DV WKH UHVW RI /DWLQ $PHULFD LW
LV WKH PXFK PRUH UHFHQW SDVW WKDW LV PRVW LPSRUWDQW WR 1LFDUDJXDQV 1R
RQH JURXS GRPLQDWHV DOO DVSHFWV RI VRFLDO OLIH 6HYHUDO JURXSV H[LVW HDFK RI
ZKLFK GRPLQDWHV LQ DW OHDVW RQH VSKHUH ZLWK HDFK UHSUHVHQWLQJ D GLIIHUHQW
DFFRXQW RI WKH SDVW 7KH LPSRUWDQFH WKDW LV DWWULEXWHG WR HFRQRPLF FHQWHUV
ZLWKLQ WKH 1LFDUDJXDQ KLVWRU\ VSHFLILFDOO\ WKH 8QLWHG 6WDWHV KDV WDNHQ
RQ D OLIH RI LWV RZQ ZKLFK³QR PDWWHU ZKDW 1LFDUDJXDQ JURXS RQH FKRRVHV
WR IROORZ³LV FRPSOHWHO\ GLIIHUHQW IURP DQ\ YHUVLRQ RI KLVWRU\ WKDW PD\
KDYH EHHQ LPSRUWHG IURP WKH 8QLWHG 6WDWHV RU (XURSH
7KH UHYROXWLRQ LV WKH PRVW LPSRUWDQW IDFWRU LQ GHWHUPLQLQJ WKH FXUUHQW
1LFDUDJXDQ VLWXDWLRQ WKH ZD\ PRVW 1LFDUDJXDQV VHHP WR VHH LW %HVLGHV
1LFDUDJXD 0H[LFR DQG &XED KDYH D KLVWRU\ RI VXFFHVVIXO UHYROXWLRQV RQ
ZKLFK WKH VWDWH LQVWLWXWLRQV DQG WKH SRSXODWLRQV FRQWLQXH WR IRFXV ZKLOH
WKH RWKHU FRXQWULHV LQ 1RUWKHUQ /DWLQ $PHULFD GR QRW KDYH VXFK D KLVWRU\
:LOP   /LNHO\ WKDW LV ZKDW KDV OHG WR VRPH VLPLODULWLHV LQ WKH XQGHU
VWDQGLQJV RI WKH LPSRUWDQFH RI KLVWRU\ 7KH 1LFDUDJXDQ UHYROXWLRQ LV WKH
\RXQJHVW DQG FRQVHTXHQWO\ PRUH SHRSOH IURP WKH LQVXUUHFWLRQLVW SHULRG
VWLOO OLYH DQG 1LFDUDJXD H[SHULHQFHG PRUH DEUXSW SROLWLFDO FKDQJHV VLQFH
WKH UHYROXWLRQDU\ EHJLQQLQJ WKDQ 0H[LFR RU &XED $OVR WKLV VHHPV WR EH
D IDFWRU IRU WKH FRQWLQXLQJ H[WHQVLYH GLVFXVVLRQ RI KLVWRU\ LQ 1LFDUDJXD
:LOP   $OVR EHIRUH 6DQGLQLVPR DQG WKH 6DQGLQLVWD UHYROXWLRQ 1L
FDUDJXD KDG D ORQJ KLVWRU\ RI KDYLQJ VHYHUDO XQFRQFLOLDWRU\ JURXSV ZLWK
UDGLFDOO\ GLIIHUHQW SROLWLFDO JRDOV ILJKW IRU SRZHU 7KLV PD\ FRQVWLWXWH DQ
DGGLWLRQDO IDFWRU DV WR ZK\ SROLWLFDOKLVWRULFDO GLVFRXUVH LV VR SUHYDOHQW
:KDW PDNHV D ORW VHQVH LQ WKH FDVH RI 1LFDUDJXD LV WR ORRN DW KRZ
KLVWRU\ LV HPSOR\HG WR GLIIHUHQWLDWH DQG OHJLWLPL]H GLIIHUHQW JURXSV :KLOH
1LFDUDJXDQV DUH H[WUHPHO\ LQIRUPHG DERXW 1LFDUDJXD·V SDUWLFXODU KLVWRU\
WKH PHDQLQJ RI GLIIHUHQW HYHQWV ZLWKLQ 1LFDUDJXDQ KLVWRU\ DUH KLJKO\
FRQWHVWHG DQG 1LFDUDJXDQV DUH JHQHUDOO\ YHU\ IDPLOLDU ZLWK WKHP DQG
GLVFXVV DQG DUJXH WKH SRLQWV $Q\RQH ZKR KDV EHHQ LQ 1LFDUDJXD LQ UHFHQW
\HDUV ZLOO KDYH QRWLFHG WKLV DQG WKH DQWKURSRORJLVW 7XOO\   ZURWH
DERXW WKH SUDFWLFH RI GLVFXVVLQJ KLVWRU\ DV D FHQWUDO SDUW RI 1LFDUDJXDQ
SRSXODU FXOWXUH LQ WKH PLGV
,W LV LPSRUWDQW WR QRWH WKDW WKLV KLVWRU\ WHOOLQJ ZKLFK ODUJHO\ KDSSHQV
RUDOO\ LV QRW DERXW WHOOLQJ P\WKV $OWKRXJK DQ DSSDUHQW ¶UHELUWK· RI LQ
GLJHQRXV LGHQWLWLHV DPRQJ WKH PDMRULW\ RI 6SDQLVKVSHDNLQJ 1LFDUDJXDQV
3ROLWLFDO LGHQWLWLHV LQ 1LFDUDJXD 

IORZHUHG GXULQJ WKH V )LHOG  7DWDU   LW KDV QRW DOWHUHG WKH
RYHUDOO VWDQGDUGV RI ZKDW LV DFFHSWHG DV YDOLG KLVWRU\ DPRQJ 1LFDUDJXDQV
,QVWHDG RI P\WKV RI DQFLHQW WLPHV WKH WHOOLQJ RI WKH SDVW LQ WRGD\·V 1LFD
UDJXD JHQHUDOO\ OLYHV XS WR WKH VDPH VWDQGDUGV RI TXDOLW\ DV WKH ZHVWHUQ
DFDGHPLF GLVFLSOLQH RI KLVWRU\ 0\ FRQWDFWV ZHUH JHQHUDOO\ ZLOOLQJ WR XVH
DFDGHPLF VWDQGDUGV IRU IDOVLILFDWLRQ DQG YDOLGDWLRQ RI VWRULHV RI WKH SDVW
RQFH WKH\ DFFHSWHG PH DV D SHUVRQ JHQHUDOO\ NQRZOHGJHDEOH LQ WKH DUHD
:KDW LV DFFHSWHG DV D EHOLHYDEOH KLVWRU\ VHHPV WR EH VLPLODU RU WKH VDPH DV
LQ RWKHU SDUWV RI WKH ZHVWHUQ ZRUOG VR FUHDWLQJ DEVWUDFW PRGHOV RI ZKDW
FRQVWLWXWHV FUHGLEOH WHOOLQJV RI WKH SDVW ZLWKLQ 1LFDUDJXDQ VRFLHW\ VHHPV
WR PDNH OLPLWHG VHQVH
7KH IROORZLQJ VHFWLRQV JLYH D EDVLF RYHUYLHZ RI VRPH RI WKH PDLQ KLV
WRULFDO SRLQWV WKDW DUH GLVFXVVHG (YHQ PRUH DERXW WKH WKHPH RI KLVWRU\
WHOOLQJ FDQ EH IRXQG LQ WKH IROORZLQJ FKDSWHUV DQG VKRXOG JLYH WKH UHDGHU
DQ LGHD RI WKH PDJQLWXGH RI WKLV SKHQRPHQRQ

3ROLWLFDO LGHQWLWLHV LQ 1LFDUDJXD

,QGLYLGXDO LGHQWLWLHV LQ WKH 6SDQLVKVSHDNLQJ SDUW RI 1LFDUDJXD FRQWDLQ D
YHU\ LPSRUWDQW SROLWLFDO DVSHFW $ W\SLFDO LQWURGXFWLRQ RI D SHUVRQ LQWUR
GXFLQJ KLPVHOI WR D JURXS RI 1LFDUDJXDQV KH KDV QHYHU PHW ZRXOG EH ´+L ,
DP -RUJH 6DQGLQLVWD DQG ZRUNHUµ 7KLV -RUJH QHHG QRW EH D PHPEHU RI RQH
RI WKH 6DQGLQLVWD SDUWLHV LQ RUGHU WR VWDWH WKLV +H FRXOG EH SDUWLFLSDWLQJ LQ
DQ H[SOLFLWO\ 6DQGLQLVWD FRRSHUDWLYH RU VRPH RWKHU RUJDQL]DWLRQ ZKLFK LV
QRW GLUHFWO\ OLQNHG WR WKH 6DQGLQLVWD SDUWLHV +H FRXOG DOVR QRW EH PHPEHU
RI DQ\ JURXS DQG MXVW YRWLQJ IRU RQH RI WKH 6DQGLQLVWD SDUWLHV RU HYHQ QRW
YRWLQJ DW DOO DQG MXVW WU\LQJ WR IROORZ ZKDW KH VHHV DV 6DQGLQLVWD SULQFLSOHV
LQ FRQGXFWLQJ KLV OLIH 1HYHUWKHOHVV KH FRXOG FODLP WR EH D 6DQGLQLVWD LI
KH IHHOV KH LV RQH 7KH VDPH VHQWHQFH FRXOG DOVR EH VDLG E\ WKH PHPEHUV
RI DQ\ RI WKH RWKHU JURXSV 7KH LGHQWLW\ DVSHFW RI EHORQJLQJ WR RQH RI WKH
JURXSV LV VLPLODU WR ZKDW $GOHU /RPQLW] DQG 0HOQLFN  ² GHVFULEH
DV ¶SDUW\ VXEFXOWXUHV· LQ &KLOH LQ WKDW WKHLU RULJLQV OLH LQ SDUW\ SROLWLFV EXW
WKDW WKH\ DUH VRPHZKDW IUHHG IURP WKH GD\ WR GD\ SROLWLFV DQG LQVWHDG
DUH PRUH DERXW SHUVRQDO LGHQWLW\ DQG D IHHOLQJ RI EHORQJLQJ 7KH JURXSV
LQ &KLOH DUH PRVWO\ GHILQHG WKURXJK GHVFULSWLRQV RI WKHLU FRQVXPSWLRQ
SDWWHUQV GUHVV DQG VSHHFK 2QH FDQ HDVLO\ LGHQWLI\ VLPLODU VXEFXOWXUHV
LQ PXFK RI (XURSH DQG WR D VRPHZKDW PRUH OLPLWHG GHJUHH DOVR LQ WKH
8QLWHG 6WDWHV RI $PHULFD <HW DV ZH ZLOO VHH LQ 1LFDUDJXD EHORQJLQJ WR
 7KH SROLWLFV RI KLVWRU\

D WKH JURXS DURXQG D SROLWLFDO SDUW\ VHHPV VRPHZKDW FORVHU UHODWHG WR

FXUUHQW SROLWLFV
7KH WZR JURXSV ZLWK PRVW SROLWLFDO LQIOXHQFH LQ 1LFDUDJXD DUH FXU
UHQWO\ WKH ¶/LEHUDOV· PRVWO\ FRQQHFWHG ZLWK WKH 3DUWLGR /LEHUDO &RQVWLWX
FLRQDOLVWD 3/& DQG WKH 6DQGLQLVWDV DOLJQHG ZLWK WKH SDUW\ )UHQWH 6DQGLQLVWD
GH /LEHUDFLyQ 1DFLRQDO )6/1  7ZR RWKHU IDLUO\ ODUJH JURXSV DUH 6DQGLQ
LVWDV DOLJQHG ZLWK WKH SDUW\ 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056 DQG
¶6RPRFLVWDV· 6RPRFLVWDV DUH WKH RQO\ ODUJHU JURXS ZKLFK JHQHUDOO\ ZLOO
QRW VSHDN DERXW WKHPVHOYHV DV D JURXS 6PDOOHU JURXSV DUH WKH ¶&RQVHUYD
WLYHV· DQG WKRVH DIILOLDWHG ZLWK WKH ¶&RQWUDV· IURP ¶FRQWUDUHYROXWLRQDULHV· 
ZKR IRXJKW DJDLQVW WKH 6DQGLQLVWDV LQ WKH V DQG ZKR QRZ WHQG WR XVH
WKH WHUP 5HVLVWHQFLD WR GHVFULEH WKHPVHOYHV UDWKHU WKDQ &RQWUDV ZKLFK
VWLOO LV XVHG E\ RWKHU 1LFDUDJXDQV WR GHVFULEH WKHP ,Q DGGLWLRQ FRXQWOHVV
WLQ\ JURXSV RI SHRSOH PRVWO\ ZLWKRXW IRUPDO RUJDQL]DWLRQ FURVV DOO RI WKH
DERYH FDWHJRULHV LQ YHU\ ORFDO ZD\V
:KDW DOO JURXSV KDYH LQ FRPPRQ LV WKDW WKH\ UHIHU WR D JURXS WKDW ZDV
LQ SRZHU LQ 1LFDUDJXD VRPH WLPH GXULQJ WKH ODVW FHQWXU\ ZLWK YHU\ DEUXSW
DQG PRVWO\ QRW YHU\ GHPRFUDWLF VKLIWV EHWZHHQ WKHP )RU WKH 6DQGLQLVWDV
VHYHUDO GLIIHUHQW SKDVHV H[LVW LQ ZKLFK WKH\ DUH WKRXJKW WR KDYH H[HUWHG
SRZHU DQG ZKLFK DUH UHIHUUHG WR ZLWK GLIIHULQJ LPSRUWDQFH E\ GLIIHUHQW
6DQGLQLVWDV 7KDW LV DQ LPSRUWDQW IDFWRU DV WR ZK\ KLVWRU\ OLYHV LQ HYHU\GD\
OLIH :KHQ D 1LFDUDJXDQ LV FXUUHQWO\ DIILOLDWHG ZLWK RQH SDUWLFXODU JURXS
LW QRUPDOO\ DOVR PHDQV WKDW LQ KLV LQWHUSUHWDWLRQGLVFXVVLRQ RI WKH SDVW
KH ZLOO HPSKDVL]H FHUWDLQ KLVWRULFDO PRPHQWV LQ D ZD\ ZKLFK PDNHV KLV
SDUWLFXODU JURXS VHHP VLJQLILFDQW
,GHRORJLFDO GLIIHUHQFHV EHWZHHQ WKH JURXSV PHDQ WKHUH DUH GLIIHUHQFHV
LQ KRZ KLVWRULFDO HYHQWV DUH XQGHUVWRRG DQG KRZ KLVWRU\ SURJUHVVHV $Q
LGHD RI GHSHQGHQF\ EHWZHHQ WKH FRUH DQG SHULSKHUDO FRXQWULHV PDQLIHVWV
LWVHOI LQ PRVW DFFRXQWV IURP PHPEHUV RI DOO SROLWLFDO JURXSV EXW ZLWK GLIIHU
HQW DPRXQW RI HPSKDVLV SODFHG RQ LW ,Q JHQHUDO 6DQGLQLVWDV KDYH D VWURQJ
RYHUWRQH RI 'HSHQGHQF\ 7KHRU\ LQFOXGHG LQ DQ\ KLVWRU\ WHOOLQJ 9HODVFR
  7KDW DSSOLHV DOVR WR ZULWWHQ KLVWRULFDO ZRUNV WKDW RULJLQDWH ZLWKLQ
WKH 6DQGLQLVPR SURMHFW ZULWWHQ E\ KLJKUDQNLQJ DFWLYLVWV RI WKH )6/1
VXFK DV 5RPiQ )RQVHFD $PDGRU DQG )RQVHFD 7HUiQ G  3URQRXQFHG
VXSSRUWHUV RI WKH &RQWUDV RU WKH 6RPR]DV VHHP WR ODUJHO\ DJUHH RQ WKH
H[SORLWDWLYH DVSHFWV WKH ILUVW ZRUOG KDV WRZDUGV FRXQWULHV OLNH 1LFDUDJXD
/LEHUDOV DQG &RQVHUYDWLYHV HPSKDVL]H WKLV DVSHFW OHVV
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV

LQ 1LFDUDJXD
, SUHVHQW VRPH RI WKH PDLQ SRLQWV RI KRZ KLVWRU\ LV GLVFXVVHG E\ P\ LQ
IRUPDQWV DQG WKURXJK WKDW JLYH DQ LGHD KRZ WKHVH WKHPHV DUH GLVFXVVHG
JHQHUDOO\ LQ 1LFDUDJXD WRGD\ 7KH SRLQW , PDNH ZLWK WKLV LV WKDW DOWKRXJK
VRPH SDUWV RI 1LFDUDJXDQ KLVWRU\ UHPDLQ KLJKO\ FRQWURYHUVLDO DQG DUH SUH
VHQWHG LQ YHU\ GLYHUJHQW ZD\V JHQHUDOO\ OLQNHG WR WKH LGHRORJLFDO JURXS
RI WKH SHUVRQ WHOOLQJ LW DOO YHUVLRQV VHHP WR SXW DJHQF\ LQ WKH KDQGV RI
1LFDUDJXDQV DQG YHU\ VHOGRP DFNQRZOHGJH WKDW VRPH WKRXJKW RU DFWLRQ
RULJLQDWHG RXWVLGH WKH ERUGHUV RI 1LFDUDJXD

)URP WKH V WR V

,W LV JHQHUDOO\ DFFHSWHG WRGD\ IURP WKH V WR WKH V WKH 8QLWHG 6WDWHV
FRXOG LQYDGH 1LFDUDJXD ZLWKRXW KDYLQJ WR IDFH WRR PXFK UHVLVWDQFH 7KLV
ZRUNHG XQWLO WKH DGYHQW RI WKH DQWLLPSHULDOLVP PRYHPHQW RI $XJXVWR
1LFROiV &DOGHUyQ 6DQGLQR LQ WKH V $PRQJ 6DQGLQLVWDV WKH LQYDVLRQV
RI WKH 8QLWHG 6WDWHV DUH QRW SUHVHQWHG DV D UHVXOW RI D FRQVFLRXV GHFLVLRQV
,QVWHDG WKH 8QLWHG 6WDWHV PHUHO\ DFWHG PHFKDQLFDOO\ OLNH DQ\ HPSLUH
ZRXOG KDYH 7KRVH SRUWUD\HG DV KDYLQJ KLVWRULFDO DJHQF\ DUH WKRVH 1LFDUD
JXDQV ZKR³XOWLPDWHO\ XQVXFFHVVIXOO\³RSSRVHG WKH LQWHUYHQWLRQV RI WKH
8QLWHG 6WDWHV RU WKRVH ZKR DUH FODLPHG WR EH UHVSRQVLEOH IRU LQYLWLQJ WKH
86 PLOLWDU\ WR 1LFDUDJXD
6DQGLQLVWDV WRGD\ JHQHUDOO\ LGHQWLI\ ZLWK WKH /LEHUDOV RI WKLV WLPH SH
ULRG 7KRVH /LEHUDOV DQG &RQVHUYDWLYHV WR ZKRP , VSRNH ZLWK JHQHUDOO\ GR
QRW KDYH PXFK WR VD\ DERXW WKH WLPH SHULRG 6DQGLQLVWDV FODLP WKH /LEHUDOV
LQYLWHG WKH ILOLEXVWHU WURRSV IURP WKH 8QLWHG 6WDWHV ZKR $QGUpV &DVWUR
(VWUDGD IRXJKW DQG WKDW WKH &RQVHUYDWLYHV EURXJKW WKH LQWHUYHQLQJ WURRSV
IURP WKH 8QLWHG 6WDWHV ZKLFK WKHQ UHPRYHG 3UHVLGHQW -RVp 6DQWRV =HOD\D
/ySH] :KHQ , DVNHG &DUROLQD )RQVHFD ,FDEDO]HWD ZKHQ 86 LQWHUYHQWLRQLVP
LQ 1LFDUDJXD VWDUWHG LQ WKH WK FHQWXU\ VKH DQVZHUHG

7KDW ZDV LQ  ZKHQ WKH &RQVHUYDWLYHV LQYLWHG WKH

8QLWHG 6WDWHV WR LQWHUYHQH DJDLQVW 3UHVLGHQW =HOD\D >/ySH]@

+HU IDWKHU )HUQDQGR )RQVHFD SURXGO\ H[SODLQHG KRZ KLV JUDQGIDWKHU

KDG ILUVW IRXJKW ZLWK =HOD\D /ySH] DQG KRZ WKDW DOVR ZDV SDUW RI WKH IRXQ
GDWLRQ WKDW LQVSLUHG VRPH RI KLV ODWHU GHHGV DV D 6DQGLQLVWD
)HUQDQGR )RQVHFD VHHV D FRQQHFWLRQ EHWZHHQ KLV JUDQGIDWKHU ZKR IRXJKW
ZLWK 3UHVLGHQW -RVp 6DQWRV =HOD\D /ySH] DQG UHEHOOHDGHU $XJXVWR 1LFROiV
&DOGHUyQ 6DQGLQR DQG KLV RZQ HQJDJHPHQW ZLWK 6DQGLQLVPR 7KLV FRQQHF
WLRQ LV QRW VR PXFK RQH RI KDYLQJ GLVFXVVHG SROLWLFV EXW UDWKHU RI JURZLQJ
XS ZLWK VRPHRQH ZLWK H[SHULHQFHV RI SROLWLFDO H[LOH ZLWK FRUUHVSRQGLQJ
IULHQGVKLSV DQG FRQQHFWLRQV

$V D IDPLO\ ZH KDYH DQ DQFHVWRU >«@ P\ JUDQGIDWKHU ZKR

>IRXJKW@ LQ WKH UHYROXWLRQ RI =HOD\D >/ySH]@ >«@ %XW DIWHU
KH ZKLOH KH ORVW IDLWK LQ =HOD\D >/ySH]@ EHFDXVH KH VDZ KLV
SURMHFW DV XQUHDOLVWLF DQG ODWHU RSWHG IRU >&DOGHUyQ@ 6DQGLQR
DV D /LEHUDO 6R DV D FKLOG , ZDV LQIOXHQFHG E\ P\ JUDQGIDWKHU
1RW EHFDXVH KH PDGH PH« FRQYLQFHG PH RI DQ\WKLQJ EXW
UDWKHU EHFDXVH , VDZ KRZ FHUWDLQ SHRSOH FDPH WR YLVLW KLP
7KH\ ZHUH YHU\ ROG DQG FDPH IURP +RQGXUDV EHFDXVH KH KDG
EHHQ H[LOHG LQ +RQGXUDV IRU  \HDUV
7ZR RI WKH WKUHH PDLQ QDWLRQDO KHURHV IURP EHIRUH  UHFRJQL]HG E\
WKH 6DQGLQLVWDV WRGD\ ZHUH /LEHUDOV ² =HOD\D /ySH] DQG %HQMDPtQ )UDQFLVFR
=HOHGyQ 5RGUtJXH] 7KRVH 6DQGLQLVWD LQIRUPDQWV ZKR , SUHVVHG RQ DQ
RSLQLRQ DERXW WKH SDUW\ SROLWLFDO DIILOLDWLRQ RI &DVWUR (VWUDGD DGPLWWHG KH
ZDV PRVW OLNHO\ D &RQVHUYDWLYH EXW JHQHUDOO\ QRW PXFK IRFXV LV SXW RQ KLV
SDUW\ DIILOLDWLRQ $OO WKUHH IURP WKLV WLPH IUDPH DUH QRZ FHOHEUDWHG E\ WKH
6DQGLQLVWDV IRU WKHLU DFWV RI GHI\LQJ WKH 8QLWHG 6WDWHV DQG QRW E\ /LEHUDOV
RU &RQVHUYDWLYHV &DVWUR (VWUDGD LV SLFWXUHG DV WKURZLQJ D VWRQH DW D 86
$PHULFDQ VROGLHU 2IWHQWLPHV KH VWDQGV QH[W WR &DOGHUyQ 6DQGLQR DV SDUW
RI WKH EUDQGLQJ RQ PDQ\ JRYHUQPHQW SURGXFWV DQG ZHEVLWHV XQGHU WKH
FXUUHQW )6/1 JRYHUQPHQW 7KH H[SODQDWLRQ E\ 6DQGLQLVWDV DV WR ZK\ WKH\


*XLPDU $PLQWD $ULDV 3UHVLGHQW RI WKH ,QVWLWXWR 1LFDUDJHQVH GH )RPHQWR
0XQLFLSDO ,1,)20  H[SODLQV WR PH KRZ WKH 6DQGLQLVPR RI WRGD\ ZLOO EULQJ
GHYHORSPHQW WR 1LFDUDJXD $V LQ DOO JRYHUQPHQW RIILFHV XQGHU WKH FXUUHQW
JRYHUQPHQW WKUHH SLFWXUHV KDQJ RQ WKH ZDOO OHIW WR ULJKW D IXOOERG\
$XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR D GHSLFWLRQ RI $QGUpV &DVWUR (VWUDGD
WKURZLQJ D VWRQH DW D 86 ILOLEXVWHU VROGLHU DQG D IXOOERG\ RI 1LFDUDJXDQ
ZULWHU 5XEpQ 'DUtR ² 

IRFXV PRUH RQ WKHVH SHUVRQV WKDQ RWKHU SROLWLFDO JURXSV JHQHUDOO\ FHQWHUV
DURXQG WKHLU QDWLRQDOLVP DQG VWUXJJOH DJDLQVW LQWHUYHQWLRQ E\ WKH 8QLWHG
6WDWHV

&DOGHUyQ 6DQGLQR

&DOGHUyQ 6DQGLQR LV WRGD\ UHJDUGHG DV WKH IRXQGHU RI WKH PRGHUQGD\ DQWL

LPSHULDOLVW VWUXJJOH LQ 1LFDUDJXD E\ MXVW DERXW DOO 1LFDUDJXDQV DOWKRXJK
DQWLLPSHULDOLVP LQ WKH IRUP RI QDWLYH $PHULFDQ VWUXJJOH DJDLQVW (XUR
SHDQ LQYDVLRQ H[LVWHG HDUOLHU $FFRUGLQJ WR )RQVHFD $PDGRU   
&DOGHUyQ 6DQGLQR·V DFWLRQV ZHUH SDUW RI D 1LFDUDJXDQ WUDGLWLRQ RI YLROHQW
UHVLVWDQFH DV D UHVSRQVH WR WKH YHU\ YLROHQW H[SORLWDWLRQ DQG WKLV WUDGLWLRQ
ZDV QRW WKH VDPH DV ZKDW H[LVWHG LQ RWKHU SDUWV RI /DWLQ $PHULFD 3HUKDSV
DV DQ H[SODQDWLRQ 6DQGLQLVWDV RIWHQWLPHV UHFRXQW KRZ &DOGHUyQ 6DQGLQR
DW  ZDWFKHG WKH OLIHOHVV ERG\ RI =HOHGyQ 5RGUtJXH] GUDJJHG WKURXJK
WKH VWUHHWV DIWHU KLV GHDWK &DOGHUyQ 6DQGLQR   DQG KRZ WKLV KDG D
SURIRXQG HIIHFW RQ &DOGHUyQ 6DQGLQR·V YLHZ RI WKH ZRUOG <HW DQ\RQH ZKR
VWD\V LQ 1LFDUDJXD IRU D IHZ PLQXWHV DQG WDNHV KLV ILUVW WD[L ULGH ZLOO YHU\
OLNHO\ KHDU DERXW &DOGHUyQ 6DQGLQR DQG KRZ KH LQLWLDWHG WKH VWUXJJOH DV LW


 7KH SROLWLFV RI KLVWRU\

LV RQH RI WKH PRVW GLVFXVVHG WKHPHV ERWK DPRQJ /LEHUDOV DQG 6DQGLQLVWDV
$ JUHDW GHDO RI WKH LGHRORJ\ DQG RUJDQL]DWLRQDO PRGHO RI WKRVH FDOOLQJ
WKHPVHOYHV 6DQGLQLVWD KDV FKDQJHG VLQFH WKH GD\V RI &DOGHUyQ 6DQGLQR
7KH FRQFHSW RI LPSHULDOLVP DV D IRUFH QHJDWLYHO\ LQIOXHQFLQJ WKH SHRSOH
LQ 1LFDUDJXD DQG RWKHU WKLUG ZRUOG FRXQWULHV FRQWLQXHV WR SOD\ DQ LPSRU
WDQW UROH DV SDUW RI WKH 6DQGLQLVWD LGHRORJ\ 2UWHJD 6DDYHGUD   EXW
DOVR PDQ\ /LEHUDOV VHHP WR KDYH WDNHQ SDUWV RI LW WR WKHPVHOYHV &DOGHUyQ
6DQGLQR LQ WKLV VHQVH LV VWUDQJHO\ OHVV FRQWURYHUVLDO DPRQJVW 1LFDUDJXDQV
WKDQ RQH PD\ WKLQN JLYHQ WKDW RQH RI WKH WZR JURXSV LQYRNHV KLV QDPH
DQG WKH RWKHU GRHV QRW

6DQGLQLVPR DQG WKH IRUJRWWHQ GHEDWH RQ ,PSHULDOLVP

$OWKRXJK WKH 6DQGLQLVWDV WRGD\ RIWHQ UHIHU WR &DOGHUyQ 6DQGLQR DQG DOO
WKDW KH GLG WKH YHUVLRQ WKH\ IRFXV RQ LV VRPHZKDW WDLQWHG 2QH RI WKH
PRUH LPSRUWDQW FRQFHSWV FRQQHFWHG ZLWK &DOGHUyQ 6DQGLQR LV WKDW RI ¶DQWL
LPSHULDOLVP· ,Q KLV  SURFODPDWLRQ 7R DEROLVK WKH 0RQURH GRFWULQH ZULW
WHQ WR GHIHQG WKH HVWDEOLVKPHQW RI D VPDOO UHEHO DUP\ WR ULG WKH FRXQWU\ RI
86 RFFXSDWLRQ VROGLHUV &DOGHUyQ 6DQGLQR VSHFLILFDOO\ QDPHG LPSHULDOLVP
DV WKH HQHP\
«>'@HHSO\ FRQYLQFHG WKDW WKH JURWHVTXH <DQNHH LPSHULDOLVP
GD\ E\ GD\ LV LQILOWUDWLQJ WKH GRPHVWLF DQG IRUHLJQ SROLF\ RI
&HQWUDO $PHULFD WXUQLQJ RXU FRZDUGO\ OHDGHUV LQWR PXPPLHV
² WKH YLEUDWLQJ VSLULW RI WKH ,QGR+LVSDQLF UDFH EHFRPHV DW
WKLV WLPH WKH $XWRQRPRXV $UP\ RI &HQWUDO $PHULFD WR VDYH LWV
UDFLDO GLJQLW\ IOLQJLQJ PLOLWDULO\ SROLWLFDOO\ DQG HFRQRPLFDOO\
DZD\ IURP LWV WHUULWRU\ WKH :DOO 6WUHHW EDQNHUV HYHQ LI WR
GR WKLV ZH ZLOO KDYH WR OHDYH RXU ERGLHV GHDG O\LQJ IDFH XS
WRZDUGV WKH VXQ &DOGHUyQ 6DQGLQR  
:KHQ , ILUVW UHDG RI &DOGHUyQ 6DQGLQR DQG KLV UHIHUHQFH WR WKH WHUP ¶LP
SHULDOLVP· DQG ¶DQWLLPSHULDOLVP· , ZDV UHPLQGHG DERXW WKH GLVFXVVLRQ RI
WKH VDPH WHUPV LQ (XURSH MXVW D IHZ \HDUV HDUOLHU ¶$QWLLPSHULDOLVP· ZDV
D FRQFHSW GHYHORSHG LQ WKH LQWHUQDWLRQDO VRFLDOLVW PRYHPHQW RQO\ D IHZ
\HDUV EHIRUH &DOGHUyQ 6DQGLQR·V HQWU\ LQWR 1LFDUDJXDQ SROLWLFV /HQLQ
F /X[HPEXUJ  %XNKDULQ   $URXQG WKH )LUVW :RUOG :DU ::,
DQG WKH WLPH RI WKH FUHDWLRQ RI WKH 6RYLHW 8QLRQ WKH LVVXH RI LPSHULDOLVP
ZDV KLJKO\ GHEDWHG LQ YDULRXV IRUXPV ZRUOGZLGH 'LIIHUHQW 0DU[LVW WKH
RULVWV SRLQWHG WR VOLJKWO\ GLIIHUHQW DVSHFWV 7R D FHUWDLQ GHJUHH 0DU[LVW
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

WKHRUHWLFLDQV FOHDUO\ GLVDJUHHG EXW LQ WKH HQG WKHLU FRPPRQ IUDPHZRUN

ZDV WKDW WKH\ VDZ WKH HQWLUH ZRUOG DV SDUW RI RQH VLQJOH FDSLWDOLVW V\VWHP
ZKLFK HYROYHG DQG QRZ VSDQQHG WKH HQWLUH SODQHW DQG KDG DQ H[SORLWDWLYH
FKDUDFWHU
&ORVHO\ OLQNHG ZDV DQRWKHU WHUP RIWHQ XVHG ZKHQ GLVFXVVLQJ &DOGHUyQ
6DQGLQR WKDW RI D ¶QDWLRQ·V ULJKW WR VHOI GHWHUPLQDWLRQ· /HQLQ   7KLV
FRQFHSW ZDV VRPHZKDW PRUH FRQWURYHUVLDO DQG FULWLFV VDLG LW LV QRW DO
ZD\V FOHDU ZKDW FRQVWLWXWHV D QDWLRQ DQG ZK\ WKHVH QDWLRQV· LQWHUHVWV³
ZKLFK WKH\ VDZ DV QRWKLQJ PRUH WKDQ D SURGXFW RI WKH HVWDEOLVKPHQW RI
FDSLWDOLVP³VKRXOG EH SDUW RI VRFLDOLVWV· SURJUDP IRU FKDQJH /X[HPEXUJ
²  $OWRJHWKHU WKH WKHRULHV RI ¶DQWLLPSHULDOLVP· DQG ¶QDWLRQV·
ULJKW WR VHOIGHWHUPLQDWLRQ· FDQ GHOLYHU WKH LGHRORJLFDO JURXQGZRUN IRU
WKH RUJDQL]LQJ RI UHYROXWLRQV LQ WKLUG ZRUOG FRXQWULHV VXFK DV 1LFDUDJXD
ZLWK WKH REMHFWLYH RI QRW RQO\ RYHUWKURZLQJ WKH ORFDO JRYHUQPHQW EXW
DOVR KXUWLQJ WKH LQWHUQDWLRQDO FDSLWDOLVW V\VWHP VR LW LV QRW WKDW VWUDQJH
WKDW &DOGHUyQ 6DQGLQR ZRXOG PDNH XVH RI WKHVH
2UWHJD    EURWKHU RI 2UWHJD 6DDYHGUD DQG OHDGHU RI WKH DUPHG
IRUFHV GXULQJ WKH V FODLPV LQ KLV ZULWLQJV WKDW &DOGHUyQ 6DQGLQR ZDV
DERXW DSSO\LQJ FRQFHSWV DQG LGHDV SUHVHQW DW WKH WLPH WR 1LFDUDJXDQ UHDO
LW\ )RQVHFD 7HUiQ D  GHIHQGV WKH VDPH K\SRWKHVLV WKDW &DOGHUyQ
6DQGLQR UHIHUUHG WR WKH LQWHUQDWLRQDO GHEDWH RFFXUULQJ DW WKH WLPH ZKHQ
KH LQYRNHG WKH WHUP ¶LPSHULDOLVP·
,QWHUHVWLQJO\ ZKLOH P\ LQLWLDO LGHD VHHPV VXSSRUWHG E\ WKRVH ZULWWHQ
E\ 1LFDUDJXDQ VRXUFHV , QHYHU KHDUG DERXW WKH LQIOXHQFH RI WKH (XURSHDQ
GHEDWH LQ FRQYHUVDWLRQV ZLWK 6DQGLQLVWDV RU RWKHU 1LFDUDJXDQV ,W ZDV
RIWHQWLPHV DUJXHG WKDW &DOGHUyQ 6DQGLQR·V DQWLLPSHULDOLVP FDPH ¶QDWX
UDOO\· WKURXJK OLYLQJ XQGHU VXFK H[SORLWDWLYH FRQGLWLRQV DQG VHHLQJ ZKDW
KDSSHQHG WR KLV FRXQWU\ 7KLV LQWHUSUHWDWLRQ RI WKH LGHRORJLFDO RULJLQ
RI &DOGHUyQ 6DQGLQR·V VWUXJJOH SODFHV DOO KLVWRULFDO DJHQF\ LQ 1LFDUDJXDQ
KDQGV DQG LW OHDGV DZD\ IURP DQ\ SRVVLEOH (XURSHDQ RU RXWVLGH LQIOXHQFH
+RZHYHU LQ WKH WKLUG ZRUOG WKH FRQFHSWV RI DQWLLPSHULDOLVP DQG RI
WKH ULJKW WR VHOIGHWHUPLQDWLRQ ZHUH DQG DUH DWWUDFWLYH FRQFHSWV QRW RQO\
WR OHIWZLQJ UHYROXWLRQDULHV ZKR ZDQW WR FKDQJH WKH HQWLUH VWUXFWXUH RI
VRFLHW\ EXW DOVR IRU WKRVH IURP WKH HOLWH ZKR DUH TXLWH SOHDVHG ZLWK WKHLU
SRVLWLRQ ZLWKLQ WKHLU RZQ VRFLHW\ DV WKH SHUSHWUDWRU RI PRVW H[SORLWDWLYH
PHFKDQLVPV LV SODFHG RXWVLGH WKH FRXQWU\ 3RWHQWLDO SROLWLFDO VXSSRUW IURP
WKH ORFDO ERXUJHRLVLH PD\ EH D IDFWRU ZK\ OHDGLQJ 6DQGLQLVWDV RIWHQWLPHV
FKRVH WR OHDYH RXW WKH FRQQHFWLRQV WR LQWHUQDWLRQDO UDGLFDO PRYHPHQWV
 7KH SROLWLFV RI KLVWRU\

WKH WHUP KDG LQ WKH SDVW ZKHQ VSHDNLQJ DERXW DQWLLPSHULDOLVP LQ D 1LFD
UDJXDQ FRQWH[W

&DOGHUyQ 6DQGLQR ² QDWLRQDOLVW RU VRFLDOLVW RU "

,Q WKH PDQ\ FRQYHUVDWLRQV , KDG ZLWK 1LFDUDJXDQV RI DOO W\SHV &DOGHUyQ

6DQGLQR VRPHWLPHV LV SRUWUD\HG DV KDYLQJ JDLQHG NQRZOHGJH DERXW UDGL
FDO SROLWLFV WKURXJK KLV VWD\ LQ 0H[LFR DQG PHHWLQJ OHIWZLQJ LGHRORJLFDO
JURXSV RI GLIIHUHQW W\SHV 2WKHUV GHQ\ DOO LGHRORJLFDO FRQQHFWLRQV WR 0H[
LFR 7KH GHQLDO RI 0H[LFDQ LQYROYHPHQW LV JHQHUDOO\ DVVXPHG E\ WKRVH
6DQGLQLVWDV ZKR SXW D ORW RI HPSKDVLV RQ WKH QDWLRQDOLVW FKDUDFWHU RI WKH
HDUO\ 6DQGLQLVWD PRYHPHQW ZKR SUHIHU WR IRFXV RQ WKH QDWLRQDOLVW DVSHFWV
RI 6DQGLQLVWD LGHRORJ\
7KH GLVDJUHHPHQW LV SDUW RI D ZLGHU GLVDJUHHPHQW DPRQJ 6DQGLQLVWDV
WRGD\ DV ZKHWKHU &DOGHUyQ 6DQGLQR ZDV D QDWLRQDOLVW RU D VRFLDOLVW DQG
LI KH ZDV D VRFLDOLVW H[SOLFLWO\ RU LPSOLFLWO\ 0RVW 6DQGLQLVWDV , PHW ZKR
EHOLHYH KH ZDV D VRFLDOLVW EHOLHYH KH ZDV VR LPSOLFLWO\ WKURXJK KLV EHOLHI
LQ DQWLLPSHULDOLVP KDYLQJ OLYHG XQGHU YHU\ H[SORLWDWLYH FLUFXPVWDQFHV
LQ 1LFDUDJXD DQG UHMHFW KLV DOOHJHG OHDUQLQJ H[SHULHQFH LQ WKH 0H[LFDQ
FODVV VWUXJJOH /HLYD    3DUW RI WKH SURRI HPSOR\HG WR GHIHQG WKLV
YLHZ LV WKDW &DOGHUyQ 6DQGLQR DW RQH SRLQW LQ WLPH LV VDLG WR KDYH FODLPHG
ODQG IRU KLV VROGLHUV WR EH UXQ DV FRRSHUDWLYHV 7KLV WKH\ EHOLHYH JLYHV
VRPH LQVLJKW LQWR &DOGHUyQ 6DQGLQR·V JHQHUDO YLHZ RQ KRZ VRFLHW\ VKRXOG
EH UXQ
,Q FRQWUDVW WR WKLV VWDQGV 6RPR]D *DUFtD  ²  ZKR SRUWUD\V
&DOGHUyQ 6DQGLQR DV D FRPPXQLVW E\ OLQNLQJ KLP WR FRPPXQLVW FRQWDFWV
LQ 0H[LFR &DOGHUyQ 6DQGLQR WULHG LQ VRPH RI KLV OHWWHUV WR FRPELQH OLE
HUDOLVP ZLWK FRPPXQLVP DQG &KULVWLDQLW\ FDOOLQJ -HVXV RI 1D]DUHWK D
UHYROXWLRQDU\ DQG FRPPXQLVW &DOGHUyQ 6DQGLQR FLWHG LQ 6RPR]D *DUFtD
 ²  &DOGHUyQ 6DQGLQR PDGH WKLV DOOHJHG VWDWHPHQW ZLWKRXW DQ\
UHIHUHQFH WR DQ\ RI WKH JUHDWHU VRFLDOLVW WKHRUHWLFLDQV 6RPH RI WKH PRVW
ZHOOVWXGLHG RI P\ 6DQGLQLVWD LQIRUPDQWV FODLP WKDW WKH GRFXPHQWDWLRQ RI
6RPR]D *DUFtD LV D IDOVLILFDWLRQ \HW DPRQJ 6DQGLQLVWDV VLPLODU YLHZSRLQWV
DERXW WKH FKDUDFWHU RI &DOGHUyQ 6DQGLQR UHPDLQ SUHVHQW
)RQVHFD 7HUiQ ZKR GHVFULEHV KLPVHOI DV D ¶0DU[LVW²/HQLQLVW· IRFXVHV
RQ WKH LQYROYHPHQW RI FDGUHV VHQW E\ WKH &RPPXQLVW ,QWHUQDWLRQDO LQ
&DOGHUyQ 6DQGLQR·V JURXS ,Q DGGLWLRQ )RQVHFD 7HUiQ PHQWLRQV WKDW
&DOGHUyQ 6DQGLQR PDGH DQ LQWHUQDWLRQDO FDOO IRU ZRUNHUV WR MRLQ WKH OD
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

ERU XQLRQ DVVRFLDWHG ZLWK WKH &RPPXQLVW ,QWHUQDWLRQDO )RQVHFD 7HUiQ

D ²  7KLV YLHZ LV WKH RQH ZKLFK PDNHV &DOGHUyQ 6DQGLQR PRVW
H[SOLFLWO\ D VRFLDOLVW ,W LV JHQHUDOO\ DJUHHG WKDW &DOGHUyQ 6DQGLQR ZDV
QRW D VWXGLHG 0DU[LVW EXW WKRVH ZKR IROORZ OHVV SURPLQHQW UDGLFDO LGHROR
JLHV ZLWKLQ 6DQGLQLVPR JHQHUDOO\ WU\ WR EDVH WKHLU EHOLHI LQ WKH DFWLRQV
RI &DOGHUyQ 6DQGLQR &DUROLQD ,FDEDOFHWD *DUD\ D 6DQGLQLVWD DQG KLVWRU\
WHDFKHU LQ 0DQDJXD VHHV KHUVHOI DV DQ DQDUFKLVW

:KHQ >&DOGHUyQ@ 6DQGLQR ZRUNHG LQ 0H[LFR LQ WKH SHWUROHXP

FRPSDQ\ >«@ WKHUH ZDV D ORW RI SUHVHQFH RI WKH ODERU XQLRQ
PRYHPHQW ZKLFK ZDV YHU\ LQIOXHQFHG E\ WKH DQDUFKRV\QGLFDOLVP
WKDW FDPH IURP (XURSH , WKLQN >«@ WKDW WKH DQDUFKRV\QGLFDOLVWV
KDYH JUHDWO\ LQIOXHQFHG WKH SROLWLFDO OHIW RI /DWLQ $PHULFD <HV
, NQRZ WKDW LQ WKH 6DQGLQLVWD SDUW\ ZKHQ \RX VSHDN RI DQ
DUFKLVP \RX UHFHLYH D UHDFWLRQ OLNH ´DUJK FUD]\WDON 0DU[
DQG /HQLQµ , UHDOO\ WKLQN WKDW·V VDG EHFDXVH RQH KDV WR OHDUQ
IURP DOO

,FDEDOFHWD *DUD\ GLG QRW WU\ WR VD\ WKDW &DOGHUyQ 6DQGLQR ZDV DQ DQDU
FKLVW EXW LW LV FOHDU WKDW VKH WKLQNV KH PXVW KDYH EHHQ LQIOXHQFHG LQ KLV
SROLWLFDO WKRXJKWV E\ WKLV LGHRORJLFDO WUDGLWLRQ ,Q VRPH RI WKH ZULWWHQ
OLWHUDWXUH , ILQG VLPLODU FODLPV 0XUR 5RGUtJXH] HW DO   GHVFULEHV
KRZ &DOGHUyQ 6DQGLQR HQFRXQWHUHG DQDUFKRV\QGLFDOLVWV DQG VRFLDOLVWV
JURXSV ZKLOH ZRUNLQJ LQ WKH 0H[LFDQ RLO VHFWRU VRPH \HDUV HDUOLHU 7KLV
PD\ KDYH SURYLGHG KLP ZLWK GLUHFW DFFHVV WR WKH (XURSHDQ GHEDWH RQ DQWL
LPSHULDOLVP DQG QDWLRQV· ULJKW IRU VHOIGHWHUPLQDWLRQ ,FDEDOFHWD *DUD\ LV
WKH RQO\ RQH RI P\ LQIRUPDQWV ZKR XVHG WKH SUHFLVH ZRUG ¶DQDUFKLVW· WR GH
VFULEH KHUVHOI +RZHYHU WKLV H[DFW SDVVDJH LV HVVHQWLDO IRU PRVW ZKR FODLP
WKDW &DOGHUyQ 6DQGLQR KDG D OHIWZLQJ LGHRORJ\ RI VRPH NLQG ,QVWHDG RI
DQDUFKLVP LW LV JHQHUDOO\ ZKDWHYHU LGHRORJ\ WKH\ IROORZ WKHPVHOYHV WKH\
FODLP &DOGHUyQ 6DQGLQR SLFNHG XS LQ 0H[LFR LQ WKLV ZD\ ,W LV DV FORVH WR
DQ DGPLVVLRQ RI IRUHLJQ LQIOXHQFH RQ WKH WKRXJKWV RI &DOGHUyQ 6DQGLQR DV
RQH FDQ JHW DPRQJ 6DQGLQLVWDV
6RPH 1LFDUDJXDQV WRGD\ FODLP WKH\ DGKHUH WR WKH RULJLQDO &DOGHUyQ
6DQGLQR DQG WKH YLVLRQ RI DQWLLPSHULDOLVP KH KHOG EXW WKDW KH GLG QRW KROG
WKH VRFLDOLVW YLHZV WKDW 6DQGLQLVPR ODWHU HQWDLOHG DQG WKLV PLVUHSUHVHQWV
6DQGLQLVPR GXULQJ WKH WLPH RI &DOGHUyQ 6DQGLQR 6RPH RI WKHVH SHRSOH
WRGD\ LGHQWLI\ ZLWK WKH &RQWUDV , DOVR PHHW 6DQGLQLVWDV ZLWK WKLV VDPH
YLHZ 7KHVH JHQHUDOO\ WKLQN WKH FXUUHQW JRYHUQPHQW VKRXOG DFW PRUH
 7KH SROLWLFV RI KLVWRU\

QDWLRQDOLVW DQG OHVV VRFLDOLVW

2QH IRFXV SRLQW ZKHQ LW FRPHV WR &DOGHUyQ 6DQGLQR·V SRVVLEOH UHMHFWLRQ
RI UDGLFDOV LV KLV WUHDWPHQW RI WKH (O 6DOYDGRULDQ 0DU[LVW )DUDEXQGR 0DUWt
0DUWt DFFRUGLQJ WR PRVW GHVFULSWLRQV IRXJKW WRJHWKHU ZLWK &DOGHUyQ
6DQGLQR DJDLQVW RFFXSDWLRQ RI WKH 8QLWHG 6WDWHV 7KH VWRULHV GLYHUJH RQ
KRZ WKHLU FRRSHUDWLRQ HQGHG 5LJR 6DPSVRQ 'DYLOD ZKR LV VDLG WR UHSUH
VHQW WKH ULJKWZLQJ RI WKH )6/1 H[SODLQHG WKH LVVXH WR PH DV WKDW RQFH
&DOGHUyQ 6DQGLQR GLVFRYHUHG 0DUWt·V 0DU[LVW EHOLHI KH WROG KLP WR OHDYH
WKH FRXQWU\ ZLWKLQ D GD\ RU VR 6DPSVRQ WRRN WKDW DV SURRI WKDW &DOGHUyQ
6DQGLQR ZDV QRW SDUWLFXODUO\ IRQG RI 0DU[LVP RU VRFLDOLVP )RQVHFD 7HUiQ
D ² GHVFULEHV WKH VLWXDWLRQ DV D SURGXFW RI WKH 0H[LFDQ FRP
PXQLVW SDUW\ WKLQNLQJ ZKLFK FRPSOLHG ZLWK WKH QHZHVW SDUW\ OLQH RI RQO\
ZRUNLQJ ZLWK PRYHPHQWV ZKR H[SOLFLWO\ ZRUNHG WRZDUGV VRFLDOLVP DQG
WKDW &DOGHUyQ 6DQGLQR KRQRUHG 0DUWt XSRQ KLV GHDWK LQ  DQG PDGH LW
FOHDU WKDW KH QHYHU ZDV LQ GLVDJUHHPHQW ZLWK WKH LGHRORJ\ RI 0DUWt 7KH
GLIIHUHQFH LQ RSLQLRQ RQ ZKR &DOGHUyQ 6DQGLQR ZDV DQG KRZ KH VKRXOG
EH FODVVLILHG XVLQJ WRGD\·V SROLWLFDO FDWHJRULHV VHHPV WR EH SUHVHQW DW DOO
WLPHV LQ WKH VHOISUHVHQWDWLRQ RI DQ\RQH ZKR FODLPV WR EH D 6DQGLQLVWD
,Q DOO YHUVLRQV RI &DOGHUyQ 6DQGLQR·V HQFRXQWHUV LQ ERWK 0H[LFR DQG
ZLWK 0DUWt WKH XOWLPDWH GHFLVLRQ PDNLQJ SRZHU LV SRUWUD\HG DV O\LQJ LQ
WKH KDQGV RI &DOGHUyQ 6DQGLQR DQG ZKDWHYHU PD\ KDYH FRPH IURP RXWVLGH
1LFDUDJXD RQO\ FDPH DV LQVSLUDWLRQ DQG D VWDUWLQJ SRLQW IRU KLV RZQ LGHR
ORJLFDO GHYHORSPHQW +LVWRULFDO DJHQF\ OLHV DJDLQ ZLWK D 1LFDUDJXDQ 7KH
GLIIHUHQFH LQ RSLQLRQ DV WR ZKDW LGHRORJ\ &DOGHUyQ 6DQGLQR UHDOO\ KHOG LV
QRW UHIOHFWHG LQ WKH ZD\ 6DQGLQLVWDV JHQHUDOO\ SUHVHQW ZKDW 6DQGLQLVPR
PHDQV WR WKHP $Q H[DPSOH WKLV FDQ EH VHHQ DW WKH VWDUW RI WKH LQWHUYLHZ
ZLWK RQH RI WKH PHPEHUV RI ¶$PLJRV· 9tFWRU &LHQIXHJRV SUHYLRXVO\ D UHY
ROXWLRQDU\ ILJKWHU QRZ LQ FKDUJH RI D VRFLDO FOXE IRU FRPPRQ SHRSOH LQ D
SRRUHU DUHD RI 0DQDJXD
, WKLQN WKDW LQ RUGHU WR XQGHUVWDQG 6DQGLQLVPR WR XQGHU
VWDQG WKH QDWLRQDOLVW FKDUDFWHU RI 6DQGLQLVPR RQH QHHGV WR
XQGHUVWDQG WKH ILJXUH >&DOGHUyQ@ 6DQGLQR 2QH QHHGV WR NQRZ
ZKHUH >&DOGHUyQ@ 6DQGLQR FDPH IURP ZKDW 6DQGLQR IRXJKW
IRU %HFDXVH ZH WKH 6DQGLQLVWDV IROORZ >&DOGHUyQ@ 6DQGLQR
+H LV WKH EDVH DQG ZH DOVR KDYH >LGHRORJLFDO@ IDWKHUV >OLNH@
&DUORV )RQVHFD >$PDGRU@ ZKR DOVR IRUPHG 6DQGLQLVPR >«@
*HQHUDOO\ SHRSOH FRPH ZKR GRQ·W NQRZ WKH KLVWRU\ 7KH\
FRPH DQG DVN XV YHU\ EDVLF YHU\ IXQGDPHQWDO WKLQJV >«DERXW@
9tFWRU &LHQIXHJRV EHOLHYHV 6DQGLQLVPR LV PRVW RI DOO DERXW JLYLQJ ´1LFDUDJXD
EDFN WR WKH 1LFDUDJXDQVµ

WKH VSLULW RI 6DQGLQLVPR WKH QDWLRQDOLVP RI 6DQGLQLVPR >«@

6R ZH DUH FRQWLQXLQJ WKLV QDWLRQDOLVP RI >&DOGHUyQ@ 6DQGLQR
:H DUH QRW FRPPXQLVWV QRW RUWKRGR[ >0DU[LVW/HQLQLVWV@
QRU GR ZH KDYH DQ\WKLQJ WR GR ZLWK LQWHUQDWLRQDOLVP :H DUH
YHU\ QDWLRQDOLVW >&DOGHUyQ@ 6DQGLQR ZDV D JX\ ZKR ZDV QDWLR
QDOLVW ZKR IRXJKW WR JLYH 1LFDUDJXD EDFN WR WKH 1LFDUDJXDQV
>«@

$V WKLV SDVVDJH IURP WKH LQWHUYLHZ VKRZV &LHQIXHJRV VHHPV WR EH LUULWDWHG

E\ WKH IDFW WKDW IRUHLJQHUV GR QRW NQRZ WKH UHDO &DOGHUyQ 6DQGLQR \HW
KLV RZQ GHILQLWLRQ RI &DOGHUyQ 6DQGLQR DQG 6DQGLQLVPR LV YHU\ VSHFLILF
DQG LV QRW VKDUHG E\ DOO RWKHU 6DQGLQLVWDV 2EVHUYLQJ WKH GLIIHUHQFH LQ
LGHDV DERXW ZKDW 6DQGLQLVPR PHDQV IRU GLIIHUHQW 6DQGLQLVWDV PD\ YHU\
ZHOO KDYH EHHQ ZKDW OHG RWKHU IRUHLJQHUV WR DVN KLP ZKDW LW PHDQV IRU
KLP LQ WKH ILUVW SODFH 7KH GHVFULSWLRQ RI &LHQIXHJRV RQFH PRUH IDOOV LQWR
WKH SDWWHUQ RI SODFLQJ RQO\ 1LFDUDJXDQV LQWR WKH FHQWHU RI DOO DWWHQWLRQ
3RVVLEOH IRUHLJQ LQIOXHQFHV RQ &DOGHUyQ 6DQGLQR RU 6DQGLQLVPR DUH QRW
FRQVLGHUHG


 7KH SROLWLFV RI KLVWRU\

&DOGHUyQ 6DQGLQR ² D IRUHLJQ DJHQW"

$ YHUVLRQ RI WKH KLVWRU\ RI &DOGHUyQ 6DQGLQR QRW JHWWLQJ DQ\ DWWHQWLRQ

LV RQH LQ ZKLFK WKH FRQFUHWH DFWLRQV RI &DOGHUyQ 6DQGLQR PD\ KDYH EHHQ
PXFK PRUH LQIOXHQFHG E\ DQRWKHU FRXQWU\ :KLOH VRPH 6DQGLQLVWDV SXW
VRPH IRFXV RQ WKH LGHRORJLFDO LQIOXHQFH IURP 0H[LFR QR 1LFDUDJXDQ ,
KDYH PHW QR PDWWHU ZKDW LGHRORJLFDO FDPS HYHU IRFXVHV RQ WKH SRVVLEOH
LPSRUWDQFH RI HFRQRPLF VXSSRUW IRU &DOGHUyQ 6DQGLQR IURP WKH 0H[LFDQ
JRYHUQPHQW :KLOH DOO RWKHU DVSHFWV RI &DOGHUyQ 6DQGLQR UHFHLYH D ORW
RI DWWHQWLRQ DQ\ SRVVLEOH FRQQHFWLRQ ZLWK 0H[LFR LV DW EHVW SRUWUD\HG DV
EHLQJ RI DQ LGHRORJLFDO NLQG
+LVWRULDQ 7R\QEHH ² ² DUJXHV WKDW WKH PDLQ FDXVH IRU
0H[LFR FRQVLGHULQJ LQYROYHPHQW EHVLGHV WKH LGHRORJLFDO VXSSRUW LW JDYH
WR OHIWLVW JURXSV LQ DOO RI /DWLQ $PHULFD ZDV WKDW 0H[LFR FRXOG SOD\ D UROH
WKDW LW FRXOG QRW LQ WKH FRQIOLFWV ZLWK WKH 8QLWHG 6WDWHV DW LWV QRUWKHUQ
ODQG ERUGHU &XOWXUH ODQJXDJH DQG JHRJUDSKLF SUR[LPLW\ DOORZHG 0H[
LFR WR SOD\ D PXFK VWURQJHU UROH LQ &HQWUDO $PHULFD WKDQ LW FRXOG DW WKH
860H[LFDQ ERUGHU
6RPH RI P\ LQIRUPDQWV DWWDFNHG 7R\QEHH IRU UHSUHVHQWLQJ D WUDGLWLRQ
RI %ULWLVK DQG 86 $PHULFDQ KLVWRULDQV DQG IRU EHLQJ KHDYLO\ LQIOXHQFHG E\
WKH SURSDJDQGD RI WKH JRYHUQPHQWV RI WKRVH FRXQWULHV +LV ERRN KDV EHHQ
WUDQVODWHG LQWR 6SDQLVK LQ 1LFDUDJXD DQG VROG DV RQH RI YHU\ IHZ ERRNV
RQ 1LFDUDJXDQ KLVWRU\ DW RQH RI WKH YHU\ IHZ XQLYHUVLW\ ERRN VKRSV LQ
0DQDJXD 2QH RI P\ LQIRUPDQWV D \RXQJ DQG FULWLFDO LQWHOOHFWXDO ZKR
EHORQJV WR WKH JURXS UXQQLQJ WKH ZHEVLWH ?iiT,ff#``B+/X+QKXMB
UHIHUUHG WR WKH ERRN ZKHQ , FRQIURQWHG KLP DERXW WKH LVVXH RI SRVVLEOH
0H[LFDQ ILQDQFLQJ RI &DOGHUyQ 6DQGLQR , WULHG WR TXHVWLRQ D VPDOO JURXS
RI 6DQGLQLVWDV LQ 0DQDJXD ZLWK WKH YHUVLRQ RI WKH HYHQWV DV SUHVHQWHG E\
7R\QEHH DQG LW GLG QRW VHHP WR VXUSULVH DQ\ RI WKHP PXFK
,W FDQ EH FRQFOXGHG WKDW VRPH 0DQDJXD VWXGHQWV KDYH KHDUG DERXW
WKLV WKHRU\ $OWKRXJK WKH\ JHQHUDOO\ GLVFXVV KLVWRU\ D ORW QRQH RI WKRVH
, PHHW VHHV D SRLQW LQ SXUVXLQJ WKLV SDUWLFXODU WKHRU\ RU HYHU SRLQWLQJ WR
LW *LYHQ WKDW MXVW DERXW DOO DVSHFWV RI &DOGHUyQ 6DQGLQR DUH TXHVWLRQHG
DQG TXLWH D ORW RI 1LFDUDJXDQV VWURQJO\ RSSRVH &DOGHUyQ 6DQGLQR RU WKH
6DQGLQLVPR WKDW JUHZ RXW RI KLP LW LV VXUSULVLQJ WKLV YHUVLRQ RI HYHQWV KDV
UHFHLYHG VR OLWWOH DWWHQWLRQ 'LIIHUHQW IURP DOO WKH RWKHU DFFRXQWV LW ZRXOG
SODFH KLVWRULFDO DJHQF\ RXWVLGH WKH ERUGHUV RI 1LFDUDJXD
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

7KH 6RPR]D \HDUV

6DQGLQLVWDV WRGD\ JHQHUDOO\ VHH WKH 6RPR]DV DV D SXSSHW RI WKH 8QLWHG
6WDWHV 6RPRFLVWDV IRFXV RQ WKH GLIIHUHQFH LQ OHDGHUVKLS VW\OH EHWZHHQ WKH
WKUHH GLIIHUHQW 6RPR]DV $FFRUGLQJ WR WKH 6RPRFLVWD YHUVLRQ HDFK 6RPR]D
JRYHUQHG DQG KDG DQ DOOLDQFH ZLWK WKH 8QLWHG 6WDWHV UDWKHU WKDQ WKDW WKH
8QLWHG 6WDWHV JRYHUQHG WKURXJK WKH 6RPR]DV ,W LV LPSRUWDQW WR QRWH KHUH
WKDW ZKLOH WKH 6RPR]DV ZHUH WKUHH GLIIHUHQW GLFWDWRUV 6RPRFLVWDV DUH
WKRVH 1LFDUDJXDQV ZKR HLWKHU LGHRORJLFDOO\ ZHUH DQG DUH LQ IDYRU RI WKH
6RPR]DUHJLPHV WKRVH ZKR PDWHULDOO\ EHQHILWHG IURP LW DQG WKRVH ZKR
IDOO LQWR ERWK JURXSV /DUJHO\ ERWK JURXSV DUH WUHDWHG DV LI WKH\ ZHUH WKH
VDPH DOWKRXJK WKDW LV QRW DOZD\V WKH FDVH
7KH 6DQGLQLVWD YHUVLRQ RI 6RPRFLVPR OHQGV OLWWOH KLVWRULFDO DJHQF\ WR
WKH LQGLYLGXDO 6RPR]DV RU WR WKH 8QLWHG 6WDWHV 7KH DFWLRQV RI WKH 6RPR]DV
DUH MXVW PHFKDQLFDO DQG IROORZ WKH JHQHUDO SDWWHUQ RI KRZ HPSLUHV EHKDYH
7KH 6RPRFLVWD YHUVLRQ RI HYHQWV GRHV OHQG PXFK PRUH DJHQF\ WR HDFK
6RPR]D 7KDW LV ZK\ WKH\ ZHUH IUHH WR EH GLIIHUHQW LQ WKHLU JRYHUQPHQW
VW\OH ,W ZRXOG VHHP DQRWKHU SXUSRVH RI WKHLU OHDGHUVKLS VW\OHV ZDV WR
VKRZ WKH\ ZHUH QRW DOORXW GLFWDWRUVKLSV ,Q QHLWKHU YHUVLRQ LV KLVWRULFDO
DJHQF\ DGPLWWHG WR OLH RXWVLGH 1LFDUDJXD +LVWRULFDO DJHQF\ GRHV QRW H[LVW
RU LW OLHV ZLWK D 1LFDUDJXDQ DQG ZLWKLQ WKH QDWLRQDO ERXQGDULHV

)LUVW RSSRVLWLRQDO YRLFHV

6RPH HYHQWV VXFK DV WKH DVVDVVLQDWLRQ RI 6RPR]D *DUFtD DUH WRGD\ FRP
PHPRUDWHG E\ 6DQGLQLVWDV RI ERWK )6/1 DQG 056 ZKR RIWHQ FODLP WKDW
/ySH] 3pUH] DQG WKH V VRFLDO PRYHPHQWV UHSUHVHQW WKHLU RZQ EHJLQ
QLQJ 6LPLODU WR WKH WUHDWPHQW RI WLPHV EHIRUH &DOGHUyQ 6DQGLQR )6/1
6DQGLQLVWDV FRPPHPRUDWH SHRSOH ZKR ZHUH PHPEHUV RI RWKHU SROLWLFDO
JURXSV LQ WKH WLPH EHIRUH WKH IRUPLQJ RI WKH )6/1 ZKLOH 1LFDUDJXDQV
ZKR VHUYH DV PHPEHUV RI WKHVH JURXSV QRZ RIWHQ GR QRW FRPPHPRUDWH
WKHP ,QGLYLGXDO 1LFDUDJXDQV DQG PRYHPHQWV WKDW ZHQW DJDLQVW WKH RWK
HUZLVH JLYHQ RUGHU LH WKRVH HQJDJHG LQ KLVWRULFDO DJHQF\ DUH XQLYHUVDOO\
FHOHEUDWHG E\ WKH 6DQGLQLVWDV DV SDUW RI WKHLU SDVW
2QH VXFK GDWH LV WKH UG RI -XO\ LQ /HyQ ZKHQ WKH VWXGHQWV ZKR ZHUH
NLOOHG RQ -XO\   DUH FRPPHPRUDWHG LQ WKH IRUP RI D JLJDQWLF VWUHHW
SDUW\ LQ GRZQWRZQ /HyQ 7KLV FHOHEUDWLRQ IROORZV D QXPEHU RI RWKHU
LPSRUWDQW FHOHEUDWLRQV LQ -XQH DQG -XO\ GXULQJ ZKLFK PDLQO\ 6DQGLQLVWD
KLVWRULFDO HYHQWV DUH FRPPHPRUDWHG 7KH KLJK SRLQW RI WKHVH FHOHEUDWLRQV
7KLV PHPRULDO WR IRXU VWXGHQW DFWLYLVWV NLOOHG LQ  FDQ EH IRXQG LQ GRZQ
WRZQ /HyQ %HKLQG WKH KHDGV RI WKH VWXGHQWV D UHGDQGEODFN IODJ LV GUDZQ
7RGD\ WKHVH FRORUV DUH DVVRFLDWHG ZLWK WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ
1DFLRQDO EXW WKH SDUW\ ZDV QRW IRXQGHG EHIRUH 

LV WKH WULXPSK FHOHEUDWLRQ RI WKH WULXPSK RI WKH LQVXUUHFWLRQ RQ WKH WK

RI -XO\ 7KH UG RI -XO\ LV WKH ILUVW GD\ ZKHQ WKH 6DQGLQLVWD UHGDQGEODFN
FDQ EH VHHQ OHVV WKDQ GXULQJ DOO WKH SUHYLRXV HYHQWV
7KHUH DUH DOZD\V VRPH GLVSXWHV DV WR KRZ WKHVH HYHQWV VKRXOG EH
FRPPHPRUDWHG %RWK \HDUV , ZDV SUHVHQW WKH HYHQW ZDV HYHQWXDOO\ WDNHQ
RYHU E\ )6/1 6DQGLQLVWDV ZKR FODLPHG WKH VWXGHQW PRYHPHQW ZDV H[DFWO\
DERXW ZKDW )6/1 6DQGLQLVPR VWDQGV IRU WRGD\ DQG ZKR WKHQ ZHQW RQ WR
SXW RQ WKH SRSXODU )6/1 6DQGLQLVWD PXVLF ZKLFK RQH KHDUV IRU PRVW RI WKH
HDUO\ VXPPHU
7KH LQLWLDWLYH WR SXW OHVV HPSKDVLV RQ WKH )6/1 LQ VXFK FRPPHPRUDW
LQJ HYHQWV WKDW FDQQRW GLUHFWO\ EH OLQNHG WR WKH )6/1 JHQHUDOO\ FRPHV
IURP VWXGHQWV FRQQHFWHG WR WKH 056 ZKR FODLP WR VHH D KLVWRULF SDUDOOHO
EHWZHHQ WKH 6RPR]D GLFWDWRUVKLS RI WKH SDVW DQG ZKDW WKH\ FODLP WR EH
WKH -RVp 'DQLHO 2UWHJD 6DDYHGUD GLFWDWRUVKLS RI WKH SUHVHQW 7KH\ FODLP WR
VHH D KLVWRULFDO FRQQHFWLRQ EHWZHHQ WKHPVHOYHV DQG WKHVH DFWLYLVWV RI WKH
SDVW

2UJDQL]LQJ IRU UHYROXWLRQDU\ LQVXUUHFWLRQ

,W LV P\ H[SHULHQFH IURP GLVFXVVLQJ ZLWK PDQ\ 6DQGLQLVWDV ZKR ZHUH DFWLYH

LQ WKH HDUO\ \HDUV WKDW DOWKRXJK WKH )6/1 UHSUHVHQWHG D EUHDN IURP WKH
6RYLHWDOOLHG 3DUWLGR 6RFLDOLVWD 1LFDUDJHQVH 361  WKH LQIOXHQFH RI 0DU[LVP


$UPDQGR 0DUWtQH] LV D FREEOHU SURXG WR QHYHU KDYH OHIW WKH 6DQGLQLVWD
PRYHPHQW +H EHFDPH LQYROYHG ZLWK WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ
1DFLRQDO )6/1 DURXQG ² DIWHU YLVLWLQJ DQ HYHQW FRPPHPRUDWLQJ
$XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR LQ  0DUWtQH] GRHV QRW VHHP WR VHH
D IXQGDPHQWDO GLIIHUHQFH EHWZHHQ WKH RUJDQL]DWLRQDO HIIRUWV RI WKH HDUO\
DQG ODWHU \HDUV RI UHVLVWDQFH DJDLQVW 6RPR]D 2WKHUV FODLP WKDW WKH )6/1
ZURQJIXOO\ WDNHV FUHGLW IRU WKH RSSRVLWLRQ PRYHPHQW EHIRUH LW ZDV IRXQGHG

QHYHUWKHOHVV FRXOG QRW EH QHJOHFWHG ZLWKLQ WKH )6/1 7KH\ XVHG VHYHUDO
FRQFHSWV IURP 0DU[LVW WHUPLQRORJ\³PRVW SURPLQHQWO\ ¶FODVV ZDU·³LQ
WKHLU GHVFULSWLRQV RI KRZ DQG ZK\ WKH\ ZHUH RUJDQL]LQJ
7KH HPSKDVLV RQ WKH LPSRUWDQFH RI WKH 6RYLHW 8QLRQ LQ WKH SUHUHYR
OXWLRQ \HDUV GLIIHUV DPRQJ 6DQGLQLVWDV 9HU\ IHZ SRUWUD\ LW DV )RQVHFD
$PDGRU IROORZLQJ D QHZ PRGHO WKDW FDPH IURP WKH 6RYLHW 8QLRQ 0RVW
VHH LW DV )RQVHFD $PDGRU KDYLQJ WKH KLVWRULFDO DJHQF\ DQG LW ZDV KLP ZKR
FKDQJHG KLV VWUDWHJ\ EHFDXVH KH ZDV DQQR\HG ZLWK WKH SUHYLRXV VWUDWHJ\
RI OHIWZLQJ UHYROXWLRQDULHV EHFDXVH LW JDYH QR KRSH WR DQ\ UHYROXWLRQDU\
HIIRUW LQ 1LFDUDJXD )RQVHFD $PDGRU  GHVFULEHG KLPVHOI DV D UDGLFDO
DQG DQ DQWLLPSHULDOLVW ZKR KDG VRPH UHVSHFW IRU WKH 6RYLHW 8QLRQ DQG LWV
DFKLHYHPHQWV
*HUPDQ %UDYR 8UELQD ZKRVH PRWKHU RSHUDWHG D 6DQGLQLVWD VDIH KRXVH
DQG ZKR ZDV IXQGDPHQWDO LQ UXQQLQJ DUPV LQ WKH ODVW SHULRG EHIRUH WKH
UHYROXWLRQDU\ WULXPSK DFFRUGLQJ WR %D\DUGR -RVp )RQVHFD *DOR EURWKHU
RI )HUQDQGR )RQVHFD DQG XQFOH RI )RQVHFD ,FDEDO]HWD  H[SODLQV KH VWDUWHG
LQYROYLQJ KLPVHOI LQ 6DQGLQLVWD SROLWLFV ´EHFDXVH DOO \RXWKV ZHUH UHSUHVVHG
LQGHSHQGHQWO\ RI ZKHWKHU WKH\ ZHUH DFWXDOO\ JXLOW\ RU QRWµ 0DQ\ RI WKRVH
ZKR VHH WKHPVHOYHV DV 6DQGLQLVWDV WRGD\ H[SODLQ WKH\ LQLWLDOO\ EHFDPH


*HUPDQ %UDYR 8UELQD·V LQLWLDO LQYROYHPHQW ZLWK WKH 6DQGLQLVWDV GXULQJ
WKH WLPH RI 6RPR]D FDPH DERXW EHFDXVH DOO \RXWKV DOVR WKRVH QRW LQYROYHG
ZLWK WKH RSSRVLWLRQ ZHUH UHSUHVVHG 0DQ\ 1LFDUDJXDQV , WDONHG WR EHFDPH
6DQGLQLVWDV RQO\ DIWHU WKH\ KDG EHHQ ZURQJIXOO\ DFFXVHG RI EHLQJ RQH

RSSRVHG WR WKH 6RPR]DV EHFDXVH WKH\ VXSSUHVVHG DOO \RXWKV 7KH UHSUHV
VLRQ GXH WR IDOVH DFFXVDWLRQV RI VXEYHUVLYH DFWLYLW\ OHG DFFRUGLQJ WR WKHLU
RZQ DFFRXQWV WR JHWWLQJ LQYROYHG LQ SUHFLVHO\ VXFK DFWLYLW\ $FFRUGLQJ WR
WKLV YHUVLRQ RI HYHQWV WKH UHDVRQ IRU WKH UHYROXWLRQ FDQ EH IRXQG HQWLUHO\
ZLWKLQ 1LFDUDJXD DQG QRW LQ WKH 6RYLHW 8QLRQ RU DQ\ZKHUH HOVH
7KH VWDWH XQGHU 6RPR]D SUHVHQWHG WKRVH RUJDQL]LQJ DJDLQVW WKH JRY
HUQPHQW DV ¶WHUURULVWV· DV RQH FDQ QRWLFH ZKHQ ORRNLQJ DW ROG QHZV FOLSV
:KLOH WKDW WHUP LV QRW XVHG PXFK DQ\ PRUH 6RPRFLVWDV WRGD\ JHQHUDOO\
IRFXV PXFK RQ WKH DPRXQW RI FKDRV WKH 6DQGLQLVWDV EURXJKW WKURXJK WKHLU
DFWLRQV

7KH )6/1 DV DQ XQGHUJURXQG PRYHPHQW

3DOPHU   FODLPV WKDW )RQVHFD $PDGRU VSHQW PXFK RI KLV WLPH EH
WZHHQ IRXQGLQJ WKH )6/1 DQG KLV PXUGHU E\ WKH *1 LQ  DSSURSULDWLQJ
&DOGHUyQ 6DQGLQR WR WKH 6DQGLQLVWD PRYHPHQW $V D FRQYHUVDWLRQ VWDUWHU
, RIWHQ DVNHG LQIRUPDQWV ZKDW WKH\ WKRXJKW RI WKH LGHD WKDW &DOGHUyQ
6DQGLQR DV NQRZQ WRGD\ LV ODUJHO\ WKH SURGXFW RI )RQVHFD $PDGRU 6XU
SULVLQJO\ , UHFHLYHG QR SURWHVWV ZKHQ PDNLQJ WKLV FODLP QHLWKHU IURP 6DQ
GLQLVWDV QRU RWKHUV 6RPH 6RPRFLVWDV WRGD\ FODLP LW LV XQNQRZQ ZKHWKHU
)RQVHFD $PDGRU·V GHDWK ZDV GXH WR DQ\ ZURQJGRLQJV RI WKH 6RPR]D UHJLPH
RU ZKHWKHU WKH 6DQGLQLVWDV ZHUH FRPSOLFLW HLWKHU E\ FRPPLWWLQJ WKH PXU


7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

GHU RU E\ LQIRUPLQJ WKH *1 RI KLV ZKHUHDERXWV LQ RUGHU WR PDUW\U KLP

IRU WKH PRYHPHQW 0RVW RWKHUV VHHP WR EHOLHYH WKH RIILFLDO VWRU\ 0DQ\
056 6DQGLQLVWDV FODLP WKDW LI )RQVHFD $PDGRU KDG VXUYLYHG KH ZRXOG EH D
PHPEHU RI WKH 056 UDWKHU WKDQ WKH )6/1 7KLV WKHRU\ LV EDVHG RQ WKH IDFW
WKDW )RQVHFD $PDGRU KDG D EDFNJURXQG IURP WKH XQLYHUVLW\ ZKLFK PRVW
056 6DQGLQLVWDV DOVR KDYH *LYHQ KLV JHQHUDOO\ OHIWZLQJ DJHQGD ZKLFK
WKH 056 DEDQGRQHG LW VHHPV UDWKHU IDUIHWFKHG
)RQVHFD $PDGRU LV JHQHUDOO\ SRUWUD\HG DV EHLQJ D SHUVRQ RI JUHDW
WKRXJKWV DQG IXQGDPHQWDO SULQFLSOHV E\ DOO WKRVH VHHLQJ WKHPVHOYHV DV
6DQGLQLVWDV 7KH 6DQGLQLVPR RI )RQVHFD $PDGRU VWDQGV LQ FRQWUDVW WR WKH
GD\ WR GD\ 1LFDUDJXDQ SROLWLFV LQ ZKLFK KRUVH WUDGHV RI HYHU\ NLQG DUH
IDLUO\ FRPPRQ 7KH )6/1 SXW &DOGHUyQ 6DQGLQR ZKR KDG EHHQ GLVSOD\HG
DV DQ RXWODZ DQG DQ HQHP\ RI RUGHU LQ WKH 6RPR]DUKHWRULF 3DOPHU 
-DQVHQ   XS DPRQJ (UQHVWR ¶&KH· *XHYDUD DQG RWKHU UHYROXWLRQDU\
OHDGHUV DV RQH RI WKH JUHDW LQVSLUDWLRQV RI DQ\ UHYROXWLRQDU\ 3DOPHU 
² 
7KH WHQGHQFLHV WKDW HPHUJHG LQ  UHPDLQ SUHVHQW WRGD\ DW OHDVW
XQRIILFLDOO\ LQ WKDW WKH\ UHSUHVHQW GLIIHUHQW YLHZV RI WKH SDVW 0RVW RI
P\ LQIRUPDQWV ZKR ZHUH SROLWLFDOO\ DFWLYH EHIRUH  FDQ VWLOO HDVLO\ EH
FODVVLILHG DFFRUGLQJ WR WKH WHQGHQF\ WKH\ IROORZHG WKHQ )RU PDQ\ RI WKHP
WKHLU WHQGHQF\ LQ WKLV SHULRG FRQWLQXHV WR EH LQWHJUDO LQ H[SODLQLQJ KRZ
WKH\ GHILQH 6DQGLQLVPR , DP DEOH PDQ\ WLPHV WR FRUUHFWO\ JXHVV WR ZKLFK
RQH WKH\ EHORQJHG
:KHQ , LQWHUYLHZHG 0DUJDULWD *XHYDUD 0RQWDQR IURP 0DQDJXD³DQR
WKHU RQH RI )RQVHFD *DOR·V FRQQHFWLRQV³VKH H[SODLQHG ZKDW WKH 6DQGLQLVWD
VWUXJJOH ZDV DERXW LQ WKH ODWH V LQ KHU YLHZ

$W WKDW WLPH WKHUH ZHUH PDVVHV RI SHRSOH ZKR GLG QRW NQRZ
KRZ WR ZULWH RU KRZ WR UHDG %XW RI FRXUVH WKH\ KDG WKHLU
RZQ H[SHULHQFHV ZLWK 1LFDUDJXDQ SROLWLFDO OLIH >«@ $QG VR
ZH VWXGHQWV WRRN LW XSRQ RXUVHOYHV WR RUJDQL]H WKH SRSXODU
PDVVHV WKH SHDVDQWV WKH IDFWRU\ ZRUNHU« PRVW RI DOO WKH
IDFWRU\ ZRUNHUV 7KH\ KDG H[SHULHQFHV ZLWK UHSUHVVLRQ EXW
WKH\ ODFNHG FODULW\ LQ WKHLU SROLWLFDO DQDO\VLV 7KH\ NQHZ WKH\
ZHUH UHSUHVVHG EXW QRW ZK\«

, JXHVVHG FRUUHFWO\ WKDW *XHYDUD 0RQWDQR EHORQJHG WR WKH 7HQGHQFLD 3UROH

WDULD 73  *HQHUDOO\ VSHDNLQJ PRVW RI WKRVH ZKR ZHUH DFWLYH DW WKDW WLPH
JLYH WKHLU RZQ WHQGHQF\ D PRUH IXQGDPHQWDO UROH LQ WKH SURFHVV WKDQ WKH
0DUJDULWD *XHYDUD 0RQWDQR VWDUWHG RUJDQL]LQJ IDFWRU\ ZRUNHUV IRU WKH
6DQGLQLVWD UHYROXWLRQDU\ LQVXUUHFWLRQ DW DJH  6KH EHOLHYHV WKDW IDFWRU\
ZRUNHUV KDG PRVWO\ H[SHULHQFHG UHSUHVVLRQ LQ GLIIHUHQW VSKHUHV EXW ODFNHG
FODULW\ LQ WKHLU DQDO\VLV RI WKHVH SKHQRPHQRQ

RWKHU RQHV 0DQ\ RI WKRVH LGHQWLILHG ZLWK WKH 73 QRZ FODLP WKDW WKRVH
IURP WKH 7HQGHQFLD 7HUFHULVWD 77 KDG QR FOHDU FODVV DQDO\VLV PDQ\ FRPLQJ
IURP ERXUJHRLV EDFNJURXQGV DQG WKH PDMRULW\ RI WKHP OHIW WKH )6/1 LQ
WKH V DQG DUH QRZ PHPEHUV RI WKH 056 :KHQ WKH\ OHIW LW ZDV DW OHDVW
LQ SDUWV DV SURWHVW DJDLQVW 2UWHJD 6DDYHGUD ² D IRUPHU PHPEHU RI WKH 77

6WUDWHJLF DOOLDQFHV

$ ODUJH SDUW RI 6DQGLQLVPR WRGD\ LV WKH FRQFHSW RI VWUDWHJLF DOOLDQFHV ZLWK

RWKHU QRQ6DQGLQLVWD VHFWLRQV RI WKH SRSXODWLRQ WR DFKLHYH D FRQFUHWH JRDO
² D VWUDWHJ\ ERUURZHG IURP WKH 77 7KH FULWLFLVP IURP DEURDG DQG IURP
IRUHLJQHUV VLQFH  ODUJHO\ FHQWHUV DURXQG WKH DOOLDQFHV RI WKH 2UWHJD
6DDYHGUD JRYHUQPHQW ZLWK ULJKWZLQJ SROLWLFDO VHFWRUV 7KH RULJLQ RI WKHVH
SROLFLHV RI DOOLDQFHV PXVW EH VHHQ LQ WKH \HDUV RI WKH WKUHH WHQGHQFLHV
7KH 77 QRW RQO\ FRRSHUDWHG ZLWK ULJKWZLQJ JURXSV EXW DOVR FRRSHUDWHG
ZLWK WKH 361 WR IRUP D FRPPRQ IURQW DQG LQYLWHG RWKHU VLPLODU JURXSV RI
RUJDQL]HG ODERUHUV WR GR WKH VDPH 0LUDQGD 2UWHJD 6DDYHGUD DQG *RUPDQ
   7KH WKUHH WHQGHQFLHV LQ WKH SDUW\ PDGH LW SRVVLEOH WR DWWUDFW
SUROHWDULDQV DQG SHDVDQWV VLPXOWDQHRXVO\ EXW , KDYH QHYHU VSRNHQ WR D
1LFDUDJXDQ ZKR SXWV PXFK HPSKDVLV RQ D WHQGHQF\ WR ZKLFK KH GLG QRW
EHORQJ
,W VWUXFN PH GXULQJ PDQ\ FRQYHUVDWLRQV KRZ WKRVH IRUPHUO\ EHORQJ


7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

LQJ WR WKH 73 WRGD\ RIWHQ VSHDN RI WKH DOOLDQFH ZLWK ERXUJHRLV VHFWRUV RI
VRFLHW\ WKDW WKH 77 DUJXHG IRU DV PHDQLQJ WKH 77 LWVHOI FRQVLVWHG RI PHP
EHUV RI WKH ERXUJHRLVLH , KDYH QRW EHHQ DEOH WR LQYHVWLJDWH ZKHWKHU WKLV
FRQFHSW RI ZKDW WKH 77 VWRRG IRU RU FRQVLVWHG RI KDV FKDQJHG RYHU WLPH
RU ZKHWKHU LW ZDV MXVW DOZD\V DVVXPHG LI RQH VSRNH IRU FRRSHUDWLRQ ZLWK
ERXUJHRLV VHFWRUV RI VRFLHW\ LW ZDV EHFDXVH RQH EHORQJHG WR WKDW SDUW RI
VRFLHW\

8QGHU WKH 6DQGLQLVWD LQ WKH V

:KHQ VSHDNLQJ WR QRQ6DQGLQLVWDV DERXW WKH V DQG KRZ WKH JRYHUQ
PHQW ZDV VHW XS WKH\ JHQHUDOO\ OHDYH RXW WKH LQLWLDO \HDUV ZLWK WKH MXQWD
DQG WKH IDFW WKDW QRQ6DQGLQLVWDV SDUWLFLSDWHG 7KRVH ZLWK D EDFNJURXQG
IURP WKH 056 DUH RIWHQ EXW QRW DOZD\V PRUH FULWLFDO WRZDUGV ZKDW WKH\
FODLP WR EH DQ DXWKRULWDULDQ JRYHUQPHQW VW\OH 1HYHUWKHOHVV ERWK 056
DQG )6/1 6DQGLQLVWDV JHQHUDOO\ ORRN XSRQ WKLV SKDVH SRVLWLYHO\ 6DQGLQ
LVWDV JHQHUDOO\ YLHZ WKH HOHFWLRQV RI  DV EHLQJ WKH ILUVW IUHH HOHFWLRQV
7KH QH[W RQHV LQ V ZKLFK WKH )6/1 ORVW JHQHUDOO\ DUH SRUWUD\HG DV D
FKRLFH EHWZHHQ ´DQ HQG WR WKH ZDU RU FRQWLQXHG IUHHGRPµ 7KRVH DJDLQVW
WKH 6DQGLQLVWDV JHQHUDOO\ SRLQW WRZDUGV WKH  HOHFWLRQV EHLQJ WKH ILUVW
IUHH RQHV 7KH LQWHUQDWLRQDO FRQWH[W ZKHUHLQ WKH GHFLVLRQ ZDV PDGH WR
KDYH D PXOWLSDUW\ V\VWHP LV QRW PHQWLRQHG

'LUHFW GHPRFUDF\ RU VXUYHLOODQFH VRFLHW\"

$FFRUGLQJ WR +R\W   WKH 6DQGLQLVWDV DW ILUVW VDZ HOHFWLRQV IRU SDUOLD
PHQW DV QRW QHHGHG WKHQ DV QHHGHG IRU WDFWLFDO UHDVRQV DQG ILQDOO\ DV D
QHFHVVDU\ SDUW RI D WUXO\ GHPRFUDWLF VRFLHW\ 7KH &'6V ZHUH XS XQWLO 
XVHG PDLQO\ DV D WRSGRZQ YHUWLFDO RUJDQL]DWLRQ WR VSUHDG WKH SROLWLFV RI
WKH 6DQGLQLVWD OHDGHUVKLS EHIRUH WKH\ VWDUWHG WR WUDQVIRUP LQWR PRUH RI D
ERWWRPXS RUJDQL]DWLRQ
1RQH RI P\ LQIRUPDQWV HYHU FRPPXQLFDWHG VXFK GLIIHUHQWLDWHG YLHZV
RI WKH UHODWLRQVKLS EHWZHHQ WKH 6DQGLQLVPR RI WKH V DQG WKH TXHVWLRQ
RI GHPRFUDF\ WR PH 7KH &RPLWpV GH 'HIHQVD 6DQGLQLVWD &'6V WKDW H[LVWHG LQ
WKH V DUH GHVFULEHG LQ YHU\ GLIIHULQJ ZD\V \HW QHYHU ZLWK DQ HPSKDVLV
RQ FKDQJHGHYHORSPHQW
$FFRUGLQJ WR /LEHUDOV DQG VRPH 6DQGLQLVWDV WKH &'6V WRRN FRQWURO RI DE
VROXWHO\ HYHU\ ORFDO GHFLVLRQ WR WKH SRLQW ZKHUH WKH LQGLYLGXDO FRXOG QRW GH
FLGH DQ\WKLQJ LQGHSHQGHQWO\ $QRWKHU DFFXVDWLRQ DJDLQVW WKH &'6V LV WKDW
 7KH SROLWLFV RI KLVWRU\

WKH\ PDGH RXW DQ H[WUHPHO\ WLJKW VXUYHLOODQFH QHWZRUN WKDW ZRXOG UHSRUW
DQ\WKLQJ LWV PHPEHUV GHHPHG LQDSSURSULDWH WR WKH JRYHUQPHQW 7KHVH DF
FXVDWLRQV PDLQO\ UHPLQG PH RI ZHVWHUQHUV VSHDNLQJ RI WKH 6WDDWVVLFKHUKHLW
6WD6L RI WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5 *HUPDQ 'HPRFUDWLF
5HSXEOLF 

2Q WKH RWKHU KDQG WKRVH ZKR OLNHG WKH &'6V H[SODLQ WKDW WRJHWKHU
ZLWK SRSXODU PLOLWLDV DQG WUDGH XQLRQV WKH &'6V PDGH LW KDUGHU WR LQIOX
HQFH SDUWV RI WKH XSSHU SDUW\ KLHUDUFKLHV WR IXQGDPHQWDOO\ FKDQJH WKH
SROLWLFDO FRXUVH RI WKH FRXQWU\ GXULQJ 6DQGLQLVWD UHLJQ EHFDXVH PDMRU
GHFLVLRQV KDG WR EH FDUULHG E\ D SRSXODU PDMRULW\ &RUUXSWLQJ WKH XSSHU
VWUDWD RI SROLWLFDO VRFLHW\ ZDV KRZ LW ZDV GRQH LQ RWKHU FRXQWULHV ZKHUH
DLG SDFNDJHV IURP WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0) ZHUH JLYHQ LQ UH
WXUQ IRU SULYDWL]DWLRQV DQG LQYHVWPHQW DFFHVV IRU IRUHLJQ FRPSDQLHV ,UYLQ
   ,Q WKLV VHQVH WKRVH SRVLWLYH WR WKH &'6V GHVFULEH WKHP DV KDYLQJ
EHHQ D ZD\ IRU WKH JHQHUDO SXEOLF WR KDYH D VD\ LQ SROLWLFV DQG WKH\ LQ
HIIHFW IRUFHG WKH JRYHUQPHQW LQWR PRUH UDSLG LPSOHPHQWDWLRQ RI DOUHDG\
SURPLVHG UHIRUPV LQ VXFK DUHDV DV DLG IRU WKH SHDVDQWV KHDOWK HGXFDWLRQ
DQG KRXVLQJ SURJUDPV ,UYLQ   

6RPH RI WKH ZRUGLQJ ERWK VLGHV XVH ZKHQ GHVFULELQJ WKH &'6V LV HYHQ
WKH VDPH 1LFDUDJXDQV RI DOO W\SHV VD\ WKH\ IXQFWLRQHG DV WKH ¶H\HV DQG
HDUV· RI WKH UHYROXWLRQ 0D\RUJD   EXW ZKLOH VXSSRUWHUV UHDG WKLV
DV SRVLWLYH WKRVH RSSRVLQJ LW VHH LW DV D QHJDWLYH $QRWKHU DOOHJDWLRQ LV
WKDW 0DU[LVWV6DQGLQLVWDV DOOHJHGO\ XVHG WKHP WR FRQWURO DQG UDGLFDOL]H
WKH UHYROXWLRQDU\ SURFHVV 6DQGLQLVWDV LQ IDYRU RI WKH &'6V JHQHUDOO\ VHH
WKDW DV D KHURLF DFWLRQ ZKLFK DOVR LQFOXGHG ¶HGXFDWLQJ· WKH QRQ6DQGLQLVWD
PHPEHUV RI WKH &'6V DQG WKH QHLJKERUKRRGV DERXW WKH UHYROXWLRQDU\
SURFHVV ZKLOH RWKHU JURXSV VHH LW DV IXQGDPHQWDOO\ XQGHPRFUDWLF

:KHWKHU WKH &'6V DQG WKH JHQHUDO VHWXS RI JRYHUQPHQW ZHUH WKH
UHVXOW RI IRUHLJQ LQIOXHQFHV LV QRW JHQHUDOO\ GLVFXVVHG 1RRQH DVNV ZK\
1LFDUDJXD ZRXOG DGRSW D JRYHUQPHQW LQVWUXPHQW IURP &XED DQG ZKHWKHU
WKH SODQ WR GR VR XOWLPDWHO\ RULJLQDWHG LQ 1LFDUDJXD LQ &XED RU LQ WKH
6RYLHW 8QLRQ 1LFDUDJXDQV HLWKHU EODPH WKH )6/1 6DQGLQLVWDV IRU WKHVH
LQVWUXPHQWV RI JRYHUQPHQW RU FUHGLW WKHP IRU LW ,Q WKDW ZD\ QR PDWWHU
ZKHWKHU WKH\ DUH LQ IDYRU RI RU DJDLQVW WKH VHWXS RI WKH JRYHUQPHQW RI WKH
V KLVWRULFDO DJHQF\ LV DW DOO WLPHV SODFHG LQ 1LFDUDJXDQ KDQGV
&HOVR &HOHVWLQR *DUFtD /ySH] LV D 6DQGLQLVWD IURP (O 5DPD ZKHUH WKH &RQWUDV
ZHUH VWURQJ GXULQJ WKH V 7KH FRQIURQWDWLRQ EHWZHHQ 6DQGLQLVWDV DQG
&RQWUDV KH DWWULEXWHV WR FDSLWDOLVP

6DQGLQLVWD UHODWLRQV WR IRUHLJQ SRZHUV

7KH 6RYLHW 8QLRQ VWLOO KROGV D YHU\ FHQWUDO SODFH IRU PRVW 1LFDUDJXDQV VLQFH
LWV LQYROYHPHQW ZLWK WKH FRXQWU\ LQ WKH V 7R WKH /LEHUDOV LW VHUYHV
DV D VFDUH DQG WKH )6/1 6DQGLQLVWDV VHH LW DV D SRZHU IRU JRRG 0RVW 056
6DQGLQLVWDV , KDYH PHW GR QRW PHQWLRQ WKH 6RYLHW 8QLRQ DW DOO , KDYH RQO\
KHDUG WZR EDVLF YHUVLRQV RI WKH UHODWLRQVKLS WR WKH 6RYLHW 8QLRQ E\ ERWK
6DQGLQLVWDV DQG DQWL6DQGLQLVWDV $FFRUGLQJ WR RQH YHUVLRQ WKH 6DQGLQ
LVWDV ZHUH DOOLHG ZLWK WKH 6RYLHW 8QLRQ WKH HQWLUH WLPH 7KH RWKHU YHUVLRQ
FODLPV WKDW WKH DOOLDQFH ZLWK WKH 6RYLHW 8QLRQ ZDV VRPHWKLQJ FHUWDLQ 1L
FDUDJXDQ OHDGHUV GHFLGHG XSRQ ULJKW DIWHU WKH UHYROXWLRQ 1R HPSKDVLV
LV SXW RQ DJHQF\ RQ WKH SDUW RI WKH 6RYLHW 8QLRQ DQG QR SUHVLGHQW RU LP
SRUWDQW GHFLVLRQ PDNHU IURP WKH 6RYLHW 8QLRQ DUH HYHU PHQWLRQHG $OVR
LW LV QRW TXHVWLRQHG ZKHWKHU WKH PDLQ GHFLVLRQ FRQFHUQLQJ WKH SRVVLEOH
FRRSHUDWLRQ EHWZHHQ WKH WZR FRXQWULHV FRXOG KDYH EHHQ WDNHQ LQ 0RVFRZ
DQG QRW 0DQDJXD
7KH UHODWLRQVKLS EHWZHHQ WKH 8QLWHG 6WDWHV DQG WKH 6DQGLQLVWDV LQ WKLV
SHULRG LV JHQHUDOO\ H[SODLQHG DV WKH UHVXOW RI RQH RI WKUHH $FFRUGLQJ WR
VRPH 056 6DQGLVWDV LW ZDV 2UWHJD 6DDYHGUD ZKR RYHUVWHSSHG WKH OLQH WR
ZKDW WKH 8QLWHG 6WDWHV FRXOG QRW DFFHSW ² VXFK DV ILUVW SURPLVLQJ WR QRW
VHQG DLG WR WKH )UHQWH )DUDEXQGR 0DUWt SDUD OD /LEHUDFLyQ 1DFLRQDO )0/1 LQ
(O 6DOYDGRU DQG WKHQ GRLQJ MXVW WKDW $FFRUGLQJ WR WKRVH ZKR LGHQWLI\ ZLWK
WKH &RQWUDV RU WKH 6RPRFLVWDV WKH 86 JRYHUQPHQW JDYH DLG WR WKH &RQWUDV


 7KH SROLWLFV RI KLVWRU\

DIWHU WKH\ KDG PDGH DQ DSSHDO IRU VXSSRUW DQG DIWHU WKH 6DQGLQLVWDV KDG
LQVWLWXWHG D EORRG\ GLFWDWRUVKLS ZKLFK WKH 8QLWHG 6WDWHV ´FRXOG QR ORQJHU
LJQRUHµ
7KH WKLUG SRVLWLRQ FDQ EH VHHQ LQ ZKDW WKH 6DQGLQLVWD &HOVR &HOHVWLQR
*DUFtD /ySH] IURP (O 5DPD WROG PH ,Q (O 5DPD WKH &RQWUDV ZHUH VRPH
ZKDW VWURQJHU WKDQ LQ 0DQDJXD DQG /HyQ DQG KH H[SODLQHG WR PH WKH
UHDVRQ IRU WKH FRQIURQWDWLRQ EHWZHHQ &RQWUDV DQG 6DQGLQLVWDV DV ´,W ZDV
WKH FDSLWDOLVW V\VWHP ZKLFK PDGH XV ILJKW SRRU DJDLQVW SRRU 1HLWKHU VLGH
EHQHILWHG IURP WKH ZDUµ 7KLV LV PXFK LQ OLQH ZLWK KRZ PRVW )6/1 6DQGLQ
LVWDV SRUWUD\ WKH DFWLRQV RI WKH 8QLWHG 6WDWHV DQG RI &RQWUD UHYROXWLRQDULHV
)RU WKH )6/1 6DQGLQLVWDV WKH DFWLRQV RI WKH 8QLWHG 6WDWHV DQG WKH &RQWUDV
DUH PHFKDQLFDO DQG JR DJDLQVW DQ\ UHYROXWLRQ LQ WKH WKLUG ZRUOG 7KH\
DUH GRQH ZLWKRXW DQ\ FRQVFLRXVQHVV KLVWRULF DJHQF\ EHKLQG LW GXH WR D
FRPELQDWLRQ RI ZRUOG FDSLWDOLVP DQG LPSHULDOLVP
,Q DOO WKUHH YHUVLRQV WKH 8QLWHG 6WDWHV VHHPV WR ODFN DJHQF\ ZKLOH
1LFDUDJXDQV DUH WKRVH ZKR FKDQJHG WKH SDWK RI KLVWRU\

5HDVRQLQJ WKH HOHFWRUDO IDLOXUH LQ 

7KH HOHFWRUDO IDLOXUH LQ  ZDV LQWHUQDWLRQDOO\ VHHQ LQ FRQQHFWLRQ ZLWK
WKH IDOOLQJ DSDUW RI WKH 6RYLHW 8QLRQ DQG WKH :DUVDZ 3DFW &DVWUR 5X]
 WULHG WR H[SODLQ WKH ORJLF RI WKH HOHFWLRQ FDPSDLJQ E\ WKH 9LROHWD
%DUULRV 7RUUHV GH &KDPRUUR FDPS LQ 

«>7@KH\ VDLG WR WKH SHRSOH WKH HFRQRPLF FULVLV ZLOO HQG LI

WKH RSSRVLWLRQ ZLQV WKH HFRQRPLF HPEDUJR >E\ WKH 8QLWHG
6WDWHV@ ZLOO HQG LI WKH RSSRVLWLRQ ZLQV ODUJH VXPV RI PRQH\
ZLOO FRPH ,Q DGGLWLRQ WKH\ DGGHG WKH 6DQGLQLVWDV DUH QRW
DEOH WR UHVROYH WKH FULVLV WKH 6DQGLQLVWDV ZLOO QRW UHFHLYH KHOS
IURP WKH 8QLWHG 6WDWHV WKH 6DQGLQLVWDV FDQQRW FRQWLQXH WR
UHFHLYH WKH KHOS WKH FRRSHUDWLRQ WKH\ KDYH UHFHLYHG KLWKHUWR
IURP D QXPEHU RI VRFLDOLVW FRXQWULHV EHFDXVH ² WKH\ VDLG ²
\RXU IULHQGV >WKH SROLWLFDO HVWDEOLVKPHQW RI (DVWHUQ (XURSH@
KDYH EHHQ RYHUWKURZQ P\ WUDQVODWLRQ &DVWUR 5X]  

&DVWUR 5X] PD\ EH ULJKW LQ WKDW LQWHUQDWLRQDO FLUFXPVWDQFHV ZHUH WKH

PRVW LPSRUWDQW DUJXPHQW WR YRWH DJDLQVW WKH )6/1 DW WKH WLPH )HZ RI
P\ 1LFDUDJXDQ LQIRUPDQWV WDONHG DERXW VXFK H[WHUQDO LQIOXHQFHV RQ WKH
HOHFWLRQV 7KH /LEHUDOV , VSRNH WR JHQHUDOO\ VDZ LW DV D YLFWRU\ RI GHPRFUDF\
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

DJDLQVW DQWLGHPRFUDWLF IRUFHV ZKLFK ZHUH UHVSRQVLEOH IRU D ZDU DQG IRU
VHQGLQJ \RXQJ 1LFDUDJXDQV LQWR WKLV ZDU GXULQJ WKHLU PLOLWDU\ VHUYLFH
7KRVH LQIRUPDQWV , GLVFXVVHG ZLWK ZKDW D 6DQGLQLVWD YLFWRU\ LQ  PLJKW
KDYH PHDQW FRPPRQO\ KHOG WKDW WKH ZDU PLJKW KDYH VWDUWHG DJDLQ 7KH
H[SODQDWLRQ 6DQGLQLVWDV JLYH IRU WKH HOHFWRUDO ORVV LV JHQHUDOO\ LPSOLFLW
DQG RQO\ ZKHQ , DVNHG GLUHFWO\ GLG WKH\ VD\ LW GLUHFWO\ 7KH PDLQ SRLQW
JLYHQ E\ 6DQGLQLVWDV VHHPV WR EH WKDW WKH 8QLWHG 6WDWHV ZDV DZDUH RI WKH
1LFDUDJXDQ SHRSOH·V VWUHQJWK DQG WKDW D /LEHUDO PRUH RU OHVV GHPRFUDWLF
JRYHUQPHQW ZDV WKH FORVHVW WKH\ FRXOG KDYH WR WKH GLUHFW GLFWDWRUVKLS
WKH\ UHDOO\ ZDQWHG
)RU 6DQGLQLVWDV LW VHHPV D JLYHQ IDFW WKDW WKH PDMRULW\ RI 1LFDUDJXDQV
ZDQWHG 6DQGLQLVWD SROLFLHV DQG RQO\ YRWHG DJDLQVW WKH )6/1 RXW RI WKLV IHDU
RI PRUH ZDU ,FDEDOFHWD *DUD\ LQ KHU H[SODQDWLRQ ZDV D OLWWOH PRUH FRPSOH[
,QVWHDG RI EODPLQJ WKH HOHFWLRQ UHVXOWV RQ WKH FKDQJH LQ LQWHUQDWLRQDO
FLUFXPVWDQFHV VKH H[SODLQHG KRZ VKH DQG KHU FRPSDWULRWV GLG QRW QRWLFH
ZKDW WKH VDFULILFH RI SDUWLFLSDWLRQ PHDQW IRU PDQ\ 1LFDUDJXDQV DW WKH
WLPH

:H VLJQHG XS IRU WKH SRSXODU PLOLWLDV ZH VLJQHG XS IRU WKH

&'6V ZH VLJQHG XS IRU WKH KDUYHVWLQJ RI FRIIHH DQG WKH KHOS
WKDW QHHGHG WR EH GRQH YROXQWDULO\«PDQ\ RI XV :H GLG WKDW
ZLWK D ORW RI ORYH <HV LW LV WUXH WKHUH ZDV VRPH LQVWLWXWLRQDO
SUHVVXUH , WKLQN , ZDVQ·W DEOH WR REVHUYH WKRVH ZKR IHOW
IRUFHG WR JR WKHUH ZDV D OLQH WR IROORZ« *LYHQ WKDW , ZHQW
YROXQWDULO\ , GLGQ·W QRWLFH WKRVH ZKR ZHQW ZLWKRXW ZDQWLQJ
WR GR VR <HV WKHUH ZHUH VRPH DXWRFUDWLF GLFWDWRULDO PHD
VXUHV , WKLQN LW·V KDUG WR GHWHUPLQH KRZ PXFK RI WKLV ZDV
D FXOWXUH RI FRORQLDOLVP DQG GLFWDWRUVKLS ZKLFK SUHFHGHG XV
DQG KRZ PXFK RI WKLV ZDV WKH UHDOLW\ RI ZDU ZKLFK FKDQJHV
HYHU\WKLQJ DQG ZKLFK LV WKH H[DFW RSSRVLWH RI GHYHORSPHQW

,FDEDOFHWD *DUD\ DFFHSWV VRPH FROOHFWLYH JXLOW IRU WKH 6DQGLQLVWDV EXW WKHQ
UDSLGO\ GHIXVHV PXFK RI WKLV LQWR FXOWXUHV RI GLFWDWRUVKLS DQG FRORQLDOLVP
DQG WKH JHQHUDO ORJLF RI ZDU 7KH 6DQGLQLVWDV DUH SUHVHQWHG DV D JURXS
WKDW DFWV RU UHDFWV ZKHUHDV RWKHU 1LFDUDJXDQ JURXSV DUH VHHQ DV EHLQJ
SDUW RI D FXOWXUH WKDW VHHPV WR KDYH FRPH LQWR EHLQJ PHFKDQLFDOO\ ,Q KHU
FDVH JURXSV RXWVLGH RI 1LFDUDJXD DUH QRW HYHQ PHQWLRQHG 7KH GLIIHUHQFH
EHWZHHQ WKH H[SODQDWLRQ RI &DVWUR 5X]   ZKLFK LV FRQVLVWHQW ZLWK
PRVW (XURSHDQ H[SODQDWLRQV DQG 1LFDUDJXDQ H[SODQDWLRQV LV WKDW LQ 1LFD
 7KH SROLWLFV RI KLVWRU\

UDJXDQ H[SODQDWLRQV KLVWRULFDO DJHQF\ OLHV LQ WKH KDQGV RI 1LFDUDJXDQV

ZKLOH LQ WKH LQWHUQDWLRQDO H[SODQDWLRQV HYHQWV LQ 1LFDUDJXD DUH PRUH RU
OHVV GLFWDWHG E\ ZRUOGZLGH GHYHORSPHQWV

7KUHH QHROLEHUDO JRYHUQPHQWV

¶7KH  \HDUV RI QHROLEHUDOLVP· DQG QRW EHLQJ LQ SRZHU UHDOO\ FORVHU WR
 ²  XQWLO  DUH WUHDWHG DV D GDUN SDUW RI KLVWRU\ E\ )6/1 6DQGLQ
LVWDV )6/1 LQIRUPDQWV GR UHFRJQL]H DW OHDVW LQ SDUW GLVWLQFW SHULRGV GXULQJ
WKRVH \HDUV ,Q WKDW VHQVH WKH FRQFUHWH SROLWLFDO UHDOLW\ LV SRUWUD\HG DV D
FRPELQDWLRQ RI PHFKDQLFDO HPSLUH W\SH SROLWLFV IURP WKH 8QLWHG 6WDWHV
LUUHJDUGOHVV RI ZKR KHDGV WKH 8QLWHG 6WDWHV DQG WKH FRQFUHWH VWXSLGLW\
DQG FRUUXSWQHVV RI WKH 1LFDUDJXDQ LQ SRVVHVVLRQ RI WKH SUHVLGHQF\ DW DQ\
JLYHQ WLPH
7KH 056 6DQGLQLVWDV SRLQW RXW WKDW +XPEHUWR 2UWHJD PDGH VXUH WR
OHDYH KLV SRVLWLRQ LQ  ZLWK DV PXFK PRQH\ DV SRVVLEOH DQG WKDW KH
VWDUWHG KLV EXVLQHVV LQ &RVWD 5LFD 7KDW JHQHUDOO\ LV PXVWHUHG DV HYLGHQFH
WR VKRZ WKDW -RVp 'DQLHO 2UWHJD 6DDYHGUD LV FRUUXSW WKURXJK DQG WKURXJK
DQG KDV QR SULQFLSOHV :KHQ , SRLQW RXW WKDW WKH\ DUH WZR GLIIHUHQW SHRSOH
+XPEHUWR 2UWHJD EHLQJ -RVp 'DQLHO 2UWHJD 6DDYHGUD·V EURWKHU , DP RIWHQ
UHPLQGHG RWKHU 6DQGLQLVWD OHDGHUV DOVR DUH VDLG WR KDYH ZDONHG RXW ZLWK
JUHDW DPRXQWV RI PRQH\ DIWHU ORVLQJ WKH  HOHFWLRQV KRZHYHU ZLWKRXW
VKRZLQJ ZKDW DGYDQWDJHV -RVp 'DQLHO 2UWHJD 6DDYHGUD PD\ KDYH JDLQHG
7KLV LV JHQHUDOO\ XVHG WR GLVFUHGLW WKH PRUDOV RI )6/1 6DQGLQLVWDV )6/1
6DQGLQLVWDV RIWHQ SRLQW RXW WKDW WKH 056 6DQGLQLVWDV ZHUH VWLOO SDUW RI WKH
SDUW\ LQ  DQG WKHQ FODLP LW ZDV UHDOO\ WKH FXUUHQW 056 6DQGLQLVWDV ZKR
EHFDPH ULFK LQ WKDW SHULRG DQG WKDW·V ZK\ WKH\ JDYH XS RQ WKH VWUXJJOH RI
WKH FODVVHV
7KH WHUP RI WKH ILUVW JRYHUQPHQW WKDW RI %DUULRV 7RUUHV GH &KDPRUUR
²  JHQHUDOO\ LV YLHZHG E\ P\ 6DQGLQLVWD LQIRUPDQWV DV D WLPH RI HFR
QRPLF VHOORXW DQG D GLVDUPLQJ WKH FRXQWU\ %DUULRV 7RUUHV GH &KDPRUUR
LV QRW JHQHUDOO\ VHHQ DV KDYLQJ EHHQ FRUUXSW EXW SHRSOH DURXQG KHU DUH
VHHQ DV VXFK %DUULRV 7RUUHV GH &KDPRUUR LV RIWHQ DFFXVHG RI KDYLQJ VROG
RXW WKH 1LFDUDJXDQ UDLOZD\ LQ D KHDUWEHDW DQG WR KDYH IRUJLYHQ WKH GHEW
WKH 8QLWHG 6WDWHV QHHGHG WR SD\ 1LFDUDJXD DV ZDU UHSDUDWLRQV VRPHWKLQJ
SHRSOH IURP DOO VHFWRUV RI 1LFDUDJXDQ SROLWLFV FRQWLQXH WR EH DQJU\ DERXW
7KH VHFRQG SUHVLGHQF\ WKDW RI -RVp $UQROGR $OHPiQ /DFD\R ² 
LV JHQHUDOO\ YLHZHG E\ 6DQGLQLVWDV DV D WLPH RI RXWUDJHRXV FRUUXSWLRQ DQG
7KH FRQWURYHUVLHV DURXQG KLVWRULFDO UHSUHVHQWDWLRQV LQ 1LFDUDJXD 

HFRQRPLF VHOORXW RI WKH FRXQWU\ LQ D ZD\ WKDW %DUULRV 7RUUHV GH &KDPRUUR

KDG QRW EHHQ DEOH WR DFFRPSOLVK 2QH IDYRULWH WDOH LV WKDW $OHPiQ /DFD\R
DW D SDUW\ VDW LQ D VPDOO SRRO ZLWK DOO KLV PLQLVWHUV DQG UHOLYHG KLPVHOI
LQWR WKH ZDWHU +H WKHQ DQQRXQFHG WKDW DQ\RQH ZKR ZRXOG JHW XS ZRXOG
EH RXW RI WKH JRYHUQPHQW DQG HYHU\ERG\ VDW VWLOO :KHWKHU WUXH RU QRW
LW JLYHV RQH DQ LGHD RI KRZ $OHPiQ /DFD\R LV SHUFHLYHG 2I DOO WKH ILJXUH
KHDGV RI WKH SROLWLFDO ULJKW $OHPiQ /DFD\R VHHPV WR EH JHQHUDOO\ UHVSHFWHG
E\ )6/1 6DQGLQLVWDV DV KDYLQJ D ¶UHDO· IROORZLQJ ´+H UHSUHVHQWV WKH SHWW\
ERXUJHRLVLH VR LW·V EHWWHU WR PDNH D GHDO ZLWK KLP WKDQ ZLWK >WKH EDQNHU@
0RQWHDOHJUHµ , DP WROG DW WKH PXQLFLSDO RIILFH RI WKH )6/1 /HyQ 7KRVH
YLHZV VHHP WR EH VKDUHG E\ PDQ\ )6/1 6DQGLQLVWDV
:KHQ VSHDNLQJ RI WKH SUHVLGHQF\ RI (QULTXH -RVp %RODxRV *H\HU 
²  LQIRUPDQWV RI DOO W\SHV IRFXV RQ KLV KHOSLQJ WR LPSULVRQ $OHPiQ
/DFD\R +H LV VHHQ DV PXFK OHVV RI DQ DFWLYLVW W\SH DQG PRUH RI D ODLVVH]
IDLUH W\SH SUHVLGHQW LQ WKDW KH LV VDLG WR KDYH FODLPHG KH FRXOG QRW GR
DQ\WKLQJ DERXW SRZHU RXWDJHV LQ PDMRU SRSXODWLRQ FHQWHUV $OWKRXJK WKH
LQIOXHQFH RI HVSHFLDOO\ WKH 8QLWHG 6WDWHV LV DFNQRZOHGJHG QR VLPLODU IRFXV
LV SDLG WR WKH GLIIHUHQFH EHWZHHQ WKH SUHVLGHQFLHV RI %XVK 6U &OLQWRQ DQG
%XVK -U 7KH DFWLRQV RI WKH 8QLWHG 6WDWHV JHQHUDOO\ DUH SRUWUD\HG DV EHLQJ
WKH VDPH DW DOO WLPHV DQG QRW WKH UHVXOW RI KLVWRULFDO DJHQF\ 7KH IDFW WKDW
WKH 8QLWHG 6WDWHV FKRVH WR VXSSRUW D GLFWDWRUVKLS XS XQWLO  DQG DIWHU
 D VHULHV RI IRUPDOO\ ´GHPRFUDWLFDOO\µ HOHFWHG SUHVLGHQWV ZLWK D YHU\
GLIIHUHQW UHFRUG RQ KXPDQ ULJKWV LVVXHV UHFHLYHV OLWWOH DWWHQWLRQ 6XFK
D IRFXV FRXOG SRVVLEO\ EH VHHQ DV OHQGLQJ KLVWRULFDO DJHQF\ WR LQGLYLGXDO
IDFWRUV RXWVLGH RI 1LFDUDJXD

7KH )6/1 RXW RI SRZHU "

)RU PDQ\ 6DQGLQLVWDV WKHLU VWUDWHJ\ RI FRQWLQXLQJ WR H[HUW VRPH SRZHU

GHVSLWH KDYLQJ ORVW WKH HOHFWLRQV VHHPV WR KDYH EHHQ OHJLWLPDWH LQ WKDW WKH\
IHHO WKH FRXQWU\ ZDV KLMDFNHG E\ WKH SROLWLFDO ULJKW DQG XQGHU WKH FRQWURO
RI WKH HPSLUH 2WKHUV VHHP WR EH UDWKHU LUULWDWHG E\ WKLV LQWHUYHQWLRQ RQ
WKH SDUW RI WKH 6DQGLQLVWDV 7KH 6DQGLQLVWDV DUH FULWLFL]HG IRU WKHLU VWUDWHJ\
GXULQJ WKHLU WLPH LQ RSSRVLWLRQ DV KDYLQJ XQGHUPLQHG WKH GHPRFUDWLF UXOH
RI ODZ 7KH FULWLFLVP FRPHV IURP WKH FXUUHQW /LEHUDO RSSRVLWLRQ DQG LV
UHSRUWHG LQ PXFK RI WKH ULJKWZLQJ PHGLD 7KLV FULWLFLVP LV DOVR KHDUG
IURP /LEHUDOV LQ WKH VWUHHWV ´,Q 1LFDUDJXD LW·V DOZD\V WKH 6DQGLQLVWDV ZKR
JRYHUQµ RQH DQWL6DQGLQLVWD WD[L GULYHU WROG PH ´,I WKH\ GRQ·W JRYHUQ
5LJREHUWR ,UXU]XP $ORQVR 0RUHQR IURP 0DQDJXD ZDV  \HDUV ROG LQ  +H
LV RQH RI PDQ\ 6DQGLQLVWDV ZKR VHHV QR SUREOHP LQ 6DQGLQLVPR JRYHUQLQJ
DJDLQVW D PDMRULW\ LQ SDUOLDPHQW EHFDXVH LQ KLV YLHZ WKH RSSRVLWLRQ LQ
SDUOLDPHQW IDLOHG WR LPSURYH WKH FRXQWU\ VXIILFLHQWO\ GXULQJ WKHLU WLPH LQ
JRYHUQPHQW

IURP DERYH WKH\ JRYHUQ IURP EHORZ %H VXUH WR ZULWH WKDW LQ \RXU ERRNµ
7KH GLIIHUHQFH LQ YLHZV FDQ EH VHHQ DV EHLQJ EDVHG XSRQ WZR GLIIHUHQW
YLHZV LQ FRQFHUQ WR DJHQF\ :KLOH 6DQGLQLVWDV VHH WKH SHULRG DV ODFNLQJ
KLVWRULFDO DJHQF\ LI LW ZHUH QRW IRU WKHLU DFWLRQV /LEHUDOV VHH WKLV DV WKH
SHULRG LQ ZKLFK WKH\ OHJLWLPDWHO\ ZHUH WR JRYHUQ DQG WKH LQWHUIHUHQFH E\
6DQGLQLVWDV ZDV XQFDOOHG IRU

*RYHUQLQJ ZLWKRXW D PDMRULW\

)6/1 6DQGLQLVWDV JHQHUDOO\ SRUWUD\ WKH ZKROH OLEHUDOGHPRFUDWLF VHWXS DV

EHLQJ IRUHLJQ WR 1LFDUDJXD DQG WKH WKLUG ZRUOG LQ JHQHUDO DQG QRWKLQJ
PRUH WKDQ D ZD\ IRU WKH 8QLWHG 6WDWHV WR HQVXUH FRQWLQXHG RSSUHVVLRQ
RI 1LFDUDJXDQV $FFRUGLQJ WR WKHP LW WRRN  \HDUV WR XQGHUVWDQG KRZ
WR ZRUN WKH V\VWHP VR WKH SROLWLFDO ULJKW LQ WKH HQG KDG QR RWKHU FKRLFH
EXW WR KDQG SRZHU EDFN WR WKHP 7KH\ EHOLHYH DOO HOHFWLRQ UHVXOWV ZKHQ
WKH /LEHUDOV ZHUH LQ FKDUJH WR EH IUDXGXOHQW 6RPH )6/1 6DQGLQLVWDV XVH
WKDW WR H[SODLQ KRZ WKH WKH\ FRXOG VFRUH EHORZ  $QRWKHU YHU\ FRP
PRQ H[SODQDWLRQ IRU ZK\ LW LV DFFHSWDEOH WR JRYHUQ DJDLQVW D PDMRULW\ LQ
SDUOLDPHQW IURP )6/1 6DQGLQLVWDV FRPHV IURP 5LJREHUWR ,UXU]XP $ORQVR
0RUHQR D 0DQDJXD IULHQG RI )RQVHFD ,FDEDO]HWD IURP XQLYHUVLW\ ZKR LV
QRW D PHPEHU RI DQ\ SROLWLFDO SDUW\ \HW FRXQWV KLPVHOI DV 6DQGLQLVWD


3UREOHPV XQGHUVWDQGLQJ WKH GLVFXVVLRQ RI 1LFDUDJXDQ KLVWRU\ 

7KHUH LV QR RSSRVLWLRQ LQ 1LFDUDJXD WKDW ZDQWV WKH EHVW IRU

WKH FRXQWU\ >«@  DUH 6DQGLQLVWDV 7KH RWKHU  KDG 
\HDUV WR IL[ WKLV FRXQWU\ DQG WKH\ FRXOG QRW PDQDJH WR GR LW
6R QRZ LW·V RXU WLPH WR WU\ DJDLQ

)6/1 6DQGLQLVWDV ZLWK WKHLU H[SODQDWLRQV SXW DQ HPSKDVLV RQ WKH QHHG

WR WDNH KLVWRULFDO DJHQF\ XSRQ WKHPVHOYHV 7KH DSSHDUDQFH RI 9HQH]XHOD
RQ WKH LQWHUQDWLRQDO VWDJH DV D PHDQV RI ILQDQFLQJ DQRWKHU 6DQGLQLVWD H[
SHULPHQW RI VWDWH SRZHU GRHV QRW UHFHLYH PXFK DWWHQWLRQ ([SODQDWLRQV
DUH VRXJKW RQO\ ZLWKLQ 1LFDUDJXD HYHQ WKRXJK )6/1 FRQQHFWLRQV WR 9HQH
]XHOD DUH ZHOONQRZQ
7KH WZR JURXSV ZKR HPSKDVL]H FKDQJH EHWZHHQ WKH V DQG QRZ
DUH WKH 056 6DQGLQLVWDV DQG WKH &RQWUDV 7KH &RQWUDV JHQHUDOO\ DSSURYH
RI WKH FXUUHQW JRYHUQPHQW DQG GLVDSSURYHG RI WKH ROG RQH DQG WKH 056
6DQGLQLVWDV IHHO WKH RSSRVLWH 7KH &RQWUDV QRZ JHQHUDOO\ H[SODLQ WKDW WKH
/LEHUDOV LQ WKH V GLG QRW KHOS WKHP LQ DQ\ ZD\ DQG LW LV RQO\ QRZ ZLWK
WKH FXUUHQW )6/1 JRYHUQPHQW WKDW WKHLU YRLFH LV KHDUG 6RPHWLPHV LW LV
H[SODLQHG WKDW 2UWHJD 6DDYHGUD ILQDOO\ XQGHUVWRRG KRZ WR OLVWHQ RWKHU
WLPHV WKH\ DGPLW LW ZDV WKHP ZKR ILQDOO\ XQGHUVWRRG ZKR WKHLU UHDO IULHQGV
DUH 1RWLFHDEO\ DEVHQW IURP ERWK 056 DQG &RQWUD H[SODQDWLRQV DV WR ZKDW
WKH GLIIHUHQFH EHWZHHQ WKH V DQG QRZ FRQVWLWXWHV DUH IRUHLJQ SRZHUV
VXFK DV WKH 8QLWHG 6WDWHV 9HQH]XHOD DQG WKH 6RYLHW 8QLRQ :KHQ D /LEHUDO
RU D 056 6DQGLQLVWD GRHV IRFXV RQ 9HQH]XHOD LW VHHPV WR EH D SRUWUD\DO
YHU\ VLPLODU WR WKDW ZKLFK WKH 6DQGLQLVWDV KDYH RI WKH 8QLWHG 6WDWHV $Q
HPSLUH WKDW DFWV PHFKDQLFDOO\ 7KH KLVWRULFDO DJHQF\ DQG FKRLFH WR IROORZ
9HQH]XHOD OLHV XQGHU DOO FLUFXPVWDQFHV ZLWK 2UWHJD 6DDYHGUD DQG RWKHU
1LFDUDJXDQV DQG QRW ZLWK +XJR &KDYH] RU RWKHU 9HQH]XHODQV

3UREOHPV XQGHUVWDQGLQJ WKH GLVFXVVLRQ RI 1LFDUDJX

DQ KLVWRU\
6RPH UHDGHUV PD\ DUJXH WKDW /LEHUDOV &RQVHUYDWLYHV 6RPRFLVWDV DQG &RQ
WUDV DUH QRW IXQGDPHQWDOO\ GLIIHUHQW JURXSV ,W VHHPV HDV\ WR FURVV IURP
RQH WR WKH RWKHU +LVWRULFDOO\ WKH\ DUH VRPHZKDW GLVWLQFW +HFN   
DQG LQ P\ H[SHULHQFH SHRSOH FODVVLI\ WKHPVHOYHV DV EHORQJLQJ WR RQH RI
WKHP VSHFLILFDOO\ UDWKHU WKDQ WR D PL[ RI DOO RI WKHP ,W VHHPV LW KDV PRUH
WR GR ZLWK WKHLU SHUVRQDO SUHIHUHQFHV RI ZKDW WKH\ OLNH WR EH LGHQWLILHG
ZLWK UDWKHU WKDQ ZLWK DQ\ FOHDU LGHRORJLFDO GLVWLQFWLRQV
 7KH SROLWLFV RI KLVWRU\

&DOGHUyQ 6DQGLQR DQG WKH )6/1 XS XQWLO  DUH JHQHUDOO\ SUHVHQWHG
DV LQGLYLGXDOLVWV DQG PDNHUV RI KLVWRU\ ZKLOH WKH JHQHUDO SRSXODFH LV OHIW
RXW $IWHU  WKHUH LV PRUH IRFXV RQ WKH FROOHFWLYH LQYROYHPHQW UDWKHU
WKDQ WKH LQYROYHPHQW RI VLQJOH LQGLYLGXDOV 7KH H[WHQW WR ZKLFK WKH )6/1
FKDQJHG LWV SROLFLHV DFFRUGLQJ WR SRSXODU GHPDQG DUH QRW PHQWLRQHG 7KLV
LV QRW E\ DFFLGHQW :KHQ WDONLQJ WR SHRSOH ZKR H[SHULHQFHG WKH WLPH
IURP EHIRUH  XQWLO QRZ LW LV YHU\ FRPPRQ IRU WKHP WR WHOO PH ILUVW
KRZ WKH\ VWDUWHG WKHLU LQYROYHPHQW LQ WKH PRYHPHQW WKHQ ZKDW WKH\
GLG DW WKH SUHFLVH WLPH RI WKH LQVXUUHFWLRQ DQG PD\EH ZKDW WKHLU RZQ
SRVLWLRQ ZDV LQ WKH V $IWHU WKDW WKHLU RZQ SHUVRQD WHQGV WR JHW ORVW
DQG , DP SUHVHQWHG ZLWK D JHQHUDO KLVWRU\ RI WKH FRXQWU\ ² ´:H ORVW 7KHQ
9LROHWD &KDPRUUR«µ )RU VRPH WKLV FROOHFWLYH KLVWRU\ VHWV LQ ULJKW DIWHU
LQVXUUHFWLRQ ZKLOH RWKHUV IRFXV RQ WKHLU RZQ OLYHV GXULQJ WKH V $Q\
GLVWLQFWLRQ EHWZHHQ VHOI DQG 6DQGLQLVWD VWDWH VHHPV WR EH QRQH[LVWHQW LQ
WKHLU H[SODQDWLRQV )RU PDQ\ WKLV OLNHO\ KDV WR GR ZLWK WKHLU SHUVRQDO
H[SHULHQFH EHLQJ LQWHQVHO\ QHJDWLYH RU SRVLWLYH )RU RWKHUV LW PD\ EH
VHHLQJ WKHPVHOYHV DV EHLQJ RI OLWWOH LPSRUWDQFH LQ FRPSDULVRQ WR ZKDW
KDSSHQHG DURXQG WKHP
0RUH FRQIXVLRQ OLHV LQ WKH IDFW WKDW VHYHUDO RI WKH PDLQ KLVWRULFDO DFWRUV
DOVR ILJXUH DV KLVWRULDQV ZKR SXEOLVK ZULWWHQ PDWHULDO PRVWO\ RQ SHULRGV
SUHFHGLQJ WKHLU RZQ WLPH 7KLV XQGHUOLQHV WKH LPSRUWDQFH JHQHUDOO\ JLYHQ
WR KLVWRULFDO GHVFULSWLRQV DQG , KDYH IRXQG LW FRQIXVLQJ WR WU\ WR ILQG
RXW ZKHQ DQ H[SODQDWLRQ LV SDUW RI SROLWLFDO DUJXPHQW LQ WKH SUHVHQW IRU
D FHUWDLQ FDXVH DQG ZKHQ LW LV WKH PRVW REMHFWLYH GHVFULSWLRQ D FHUWDLQ
SROLWLFDO DFWRU PDQDJHV WR SURGXFH
7KH PDWHULDO SUHVHQWHG KHUH PD\ DW WLPHV UHVHPEOH D SDWFKZRUN RI
YHU\ GLIIHUHQW ZD\V RI FLWLQJ KLVWRULFDO DFFRXQWV 7KDW LV PDLQO\ GXH WR WKH
GLIIHUHQW QDWXUH RI WKH VRXUFHV 6RPH SRLQWV RU DFFRXQWV DUH WKH VDPH RU
YHU\ VLPLODU DQG , KDYH KHDUG FHUWDLQ SRLQWV PDGH PDQ\ WLPHV E\ 1LFDUDJX
DQV ZKR GHFODUH WKHPVHOYHV WR EHORQJ WR VRPH FHUWDLQ IDFWLRQ 8VXDOO\ WKH
VHWWLQJ IRU JDWKHULQJ WKLV W\SH RI LQIRUPDWLRQ ZHUH LQIRUPDO LQWHUYLHZV
LH ZKHQ VLWWLQJ LQ D SXEOLF EXV VKDULQJ D FDE RU MXVW UDQGRPO\ EHLQJ
DSSURDFKHG E\ XQNQRZQ 1LFDUDJXDQV LQ WKH VWUHHW ZKR IHOW WKH\ QHHGHG
WR H[SODLQ ¶KLVWRULFDO IDFWV· WR PH , KDYH LQFOXGHG PRVW RI WKDW PDWHULDO LQ
D JHQHUDOL]HG IRUP 2WKHU SRLQWV , ILUVW KHDU LQ WKLV PDQQHU EHIRUH , GHFLGH
WR LQYHVWLJDWH IXUWKHU E\ DVNLQJ PRUH TXHVWLRQV LQ WKH VDPH GLUHFWLRQ WR
PHPEHUV RI WKH VDPH IDFWLRQ RU DSSURDFKLQJ WKRVH IURP DQRWKHU IDFWLRQ
ZLWK LW WR KHDU WKHLU UHDFWLRQ 7KH QH[W WLPH , FRQIURQW VRPHRQH IURP
&RQFOXGLQJ UHPDUNV 

WKH ILUVW IDFWLRQ ZLWK WKDW UHDFWLRQ WR JHW D FRXQWHUUHDFWLRQ HWF 0DQ\ RI
WKHVH DFFRXQWV DUH GHVFULEHG ZLWK D SDUWLFXODUO\ FRQFLVH DQVZHU ZKLFK ,
IHOW EHQHILFLDO WR WKH UHDGHU
2WKHU W\SHV RI GDWD FRQWDLQ ZULWWHQ DFFRXQWV ZKLFK DUH FLWHG DFFRUG
LQJ WR FRPPRQ FLWDWLRQ VWDQGDUGV ,W LV QRW WR EH XQGHUVWRRG WKDW WKHVH
ZULWWHQ DFFRXQWV UHSUHVHQW WKH UHDO DQG REMHFWLYH KLVWRU\ ZKLOH WKH VSR
NHQ DFFRXQWV UHSUHVHQW DQ LPSHUIHFW DQG SDUWLVDQ DFFRXQW %RWK W\SHV DUH
UHDOO\ RI WKH VDPH TXDOLW\ DQG , KDYH WUHDWHG WKH PDWHULDO VLPLODUO\ ,Q DG
GLWLRQ WR ZKDW LV GLVFXVVHG ZLWKLQ 1LFDUDJXDQ VRFLHW\ , KDYH LQ VRPH FDVHV
LQFOXGHG PDWHULDO ZKLFK JRHV EH\RQG WKH H[SODQDWLRQV JLYHQ E\ 1LFDUDJX
DQV LQ RUGHU WR VKRZ ZKDW DOWHUQDWLYH DFFRXQWV RI WKH VDPH SKHQRPHQRQ
FRXOG EH JLYHQ LI 1LFDUDJXDQ DJHQF\ ZHUH QRW SULRULWL]HG 7HUPV VXFK DV
¶/LEHUDO· ¶VRFLDOLVW· ¶&RQVHUYDWLYH· DQG ¶DQDUFKLVW· DUH XVHG E\ P\ LQIRU
PDQWV DQG ZLWKLQ 1LFDUDJXDQ VRFLHW\ DQG WKH\ DUH QRW DOZD\V XVHG LQ WKH
VDPH ZD\ , FKRVH QRW WR XVH WKHVH VDPH WHUPV WR WU\ WR FODVVLI\ LQIRUPDQWV
KLVWRULFDO DFWRUV RU LGHRORJLHV , XVH EURDGHU FDWHJRULHV VXFK DV ¶OHIWZLQJ·
DQG ¶ULJKWZLQJ· WR GHVFULEH VRPH LQIRUPDQWV ZKR , EHOLHYH QHHG WR EH
FODVVLILHG IXUWKHU ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW

&RQFOXGLQJ UHPDUNV
7KH LQWHUQDO SRZHU VWUXFWXUH DQG LPSOHPHQWDWLRQ RI GHPRFUDF\ DQG SDU
WLFLSDWLYH ZD\V DYDLODEOH WR WKH SRSXODWLRQ KDYH EHHQ FRPPRQ SUREOHPV
IRU UHYROXWLRQDU\ PRYHPHQWV WKDW GULIWHG DZD\ IURP WKHLU RULJLQDO SDWK
7KH H[FHSWLRQ RI WKH IRUPHU PLJKW H[DFWO\ KDYH EHHQ 1LFDUDJXD DV WKH
ORVV RI WKH )6/1 LQ WKH  HOHFWLRQV VKRZHG $IWHU DOO WKH UHGDQGEODFN
RI WKH 6DQGLQLVWD IODJ GRHV UHSUHVHQW DQDUFKLVP LQ PDQ\ SDUWV RI WKH ZRUOG
EXW WKH TXHVWLRQ RI SRSXODU SDUWLFLSDWLRQ LQ WKH DFWXDO GHFLVLRQ PDNLQJ
SURFHVV ZDV DQ HVVHQWLDO LVVXH LQ 1LFDUDJXD 7KH DFFHSWDQFH RI D SRSXODU
PDMRULW\ PD\ KDYH EHHQ WKH PDLQ FDXVH ZK\ WKH 6DQGLQLVWD PRYHPHQW ZDV
QRW GLVFUHGLWHG FRPSOHWHO\ DIWHU WKH IDOO RI WKH 6RYLHW 8QLRQ WKH ZD\ PDQ\
VLPLODU PRYHPHQWV IDUHG ,W LV OLNHO\ RQH LPSRUWDQW FDXVH RI GLIIHUHQW
DFFHSWHG YHUVLRQV RI KLVWRU\ EHLQJ SUHVHQW LQ 1LFDUDJXD
$ SDWWHUQ WKDW FDQ EH VHHQ WKURXJKRXW WKH HQWLUH FXUUHQW SUHVHQWD
WLRQ RI 1LFDUDJXDQ KLVWRU\ LV WKH DEVHQFH RI DJHQF\ RQ WKH SDUW RI IRUHLJQ
SRZHUV $OO SDUWV RI KLVWRU\ DUH XQLYHUVDOO\ DWWULEXWHG WR 1LFDUDJXDQ DF
WRUV (YHQ ZKHQ D IRUHLJQ SRZHU LV FOHDUO\ LQYROYHG LW GRHV VR EHFDXVH
D 1LFDUDJXDQ DFWRU KDV PRELOL]HG LW WR GR VR DFFRUGLQJ WR WKH WKLQNLQJ
 7KH SROLWLFV RI KLVWRU\

RI 1LFDUDJXDQV ,Q RWKHU H[DPSOHV DJHQF\ LV WUDQVIHUUHG WR LQGLYLGXDO

UHYROXWLRQDU\ OHDGHUV LQ WDOHV RI D UHYROXWLRQ DW D ODWHU VWDJH ZKHQ WKH
UHYROXWLRQ LV WDNHQ DV SDUW RI D QDWLRQ EXLOGLQJ SURMHFW XQGHU PXFK PRUH
LQVWLWXWLRQDOL]HG FRQGLWLRQV WKDQ WKRVH WKH UHYROXWLRQDULHV OLYHG XQGHU
8VDJH RI UHYROXWLRQDU\ LFRQV LQ VXFK ZD\V LV QRW UHVWULFWHG WR 1LFDUD
JXD 8QGHU WKH UHJLPH RI WKH 3DUWLGR 5HYROXFLRQDULR ,QVWLWXFLRQDO 35, IURP
 LQ 0H[LFR 0H[LFDQ VFKRROV WDXJKW DERXW WKH 0H[LFDQ UHYROX
WLRQDU\ (PLOLR =DSDWR *LOEHUW  WR MXVWLI\ WKH 0H[LFDQ JRYHUQPHQW·V
FXUUHQW SROLWLFDO OLQH *LOEHUW   PXFK LQ WKH VDPH ZD\ WKDW WKH )6/1
WDXJKW DERXW &DOGHUyQ 6DQGLQR LQ WKH V DQG DOVR KDV VWDUWHG WR GR VR
FXUUHQWO\ 7KH 35, LV VHHQ E\ PXFK RI WKH OHIW DV D SDUW\ WKDW PD\ KDYH EHHQ
VRFLDOLVW RQFH EXW E\ WKH WLPH RI WKHLU HOHFWRUDO GHIHDW KDG GHJHQHUDWHG
DQG MXVW FOXQJ WR DQ LPDJH RI UHYROXWLRQDU\ LFRQV ZKLOH KDYLQJ ORVW PXFK
RI WKH PHDQLQJ EHKLQG WKHP ,FDEDOFHWD *DUD\ PDGH WKH VDPH FRQQHFWLRQ

6RPHWLPHV , WKLQN³DV D 6DQGLQLVWD LW KXUWV PH³, IHHO OLNH WKH

35, ² WKH 0H[LFDQ UHYROXWLRQDU\ SDUW\ ,W KXUWV VR PXFK EXW
\HV , NQRZ WKHUH DUH XJO\ WKLQJV EDG WKLQJV WKDW KDSSHQ

7KH GLIIHUHQFH EHWZHHQ 1LFDUDJXD DQG 0H[LFR LV WKDW LQ 1LFDUDJXD LW LV

QRW RQO\ WKH )6/1 WKDW IROORZV WKLV SDWWHUQ RI WUDQVIHUULQJ DOO KLVWRULFDO
DJHQF\ WR 1LFDUDJXD DQG 1LFDUDJXDQV LW DOVR KROGV WUXH IRU DOO RWKHU 1LFD
UDJXDQ SDUWLHV $V ZH KDYH VHHQ 6DQGLQLVWDV WRGD\ IRFXV YHU\ OLWWOH RQ WKH
ILQDQFLQJ &DOGHUyQ 6DQGLQR PD\ KDYH UHFHLYHG IURP 0H[LFR 7KH )UHQWH GH
/LEHUDFLyQ 1DFLRQDO )/1 )6/1 ² TXLWH FOHDUO\ IROORZHG WKDW VWUDWHJ\
DQG ZDV ILQDQFHG E\ (DVWHUQ (XURSH DQG &XED 7KH\ DUH YLHZHG DV DFWLQJ
FRPSOHWHO\ RQ WKHLU RZQ DQG ZLWKRXW DQ\ OLQNV WR WKHVH SRZHUV 6LPLODUO\
WKH 6RPRFLVWDV VHH WKH 6RPR]DV DV DFWLQJ RQ WKHLU RZQ ZLWKRXW DQ\ 86 LQ
IOXHQFH DQG WKH &RQWUDV VHH WKHLU DFWLRQV DV UDWKHU XQUHODWHG WR GHFLVLRQV
PDGH E\ :DVKLQJWRQ 7KH VDPH KROGV WUXH ZLWK WKH /LEHUDOV IRU WKHLU WLPH
LQ RIILFH (YHQ ZKHQ D IRUHLJQ SRZHU LV PHQWLRQHG DV KDYLQJ SURYLGHG
UHVRXUFHV RU WURRSV LW LV TXDOLILHG ZLWK D VWRU\ RQ ZK\ VRPH 1LFDUDJXDQ
LQGLYLGXDO RU JURXS FRQYLQFHG WKHP WR GR VR
/DQFDVWHU   VDZ WKH XOWLPDWH EDVH IRU 1LFDUDJXDQ UHYROXWLRQ
DU\ FRQVFLRXVQHVV RI WKH V³WKURXJK WKH ORFDO YHUVLRQ RI OLEHUDWLRQ
WKHRORJ\³WR OLH LQ 1LFDUDJXDQ WUDGLWLRQV DQG KLVWRU\ DQG WKH IRUHLJQ UHYR
OXWLRQDU\ FRQFHSWV DQG WKHRULHV HPSOR\HG ZRXOG FRQVHTXHQWO\ EH UDWKHU

 7KH SDUW\ RSHUDWHG XQGHU RWKHU QDPHV VLQFH 

&RQFOXGLQJ UHPDUNV 

GHFRQWH[WXDOL]HG IURP WKHLU RULJLQDO IRUHLJQ FRQWH[W 0\ ILHOG GDWD IURP

WKH FXUUHQW SHULRG VHHPV WR VKRZ UDWKHU WKH RSSRVLWH $ SDWWHUQ WKDW
FDQ EH VHHQ WKURXJKRXW WKH HQWLUH FXUUHQW SUHVHQWDWLRQ RI 1LFDUDJXDQ
KLVWRU\ LV WKH DEVHQFH RI DJHQF\ RQ WKH SDUW RI IRUHLJQ SRZHUV $OO SDUWV
RI KLVWRU\ DUH XQLYHUVDOO\ DWWULEXWHG WR 1LFDUDJXDQ DFWRUV (YHQ ZKHQ D
IRUHLJQ SRZHU LV FOHDUO\ LQYROYHG LW GRHV VR EHFDXVH D 1LFDUDJXDQ DFWRU
KDV PRELOL]HG LW WR GR VR DFFRUGLQJ WR WKH WKLQNLQJ RI 1LFDUDJXDQV ,Q
RWKHU H[DPSOHV DJHQF\ LV WUDQVIHUUHG WR LQGLYLGXDO UHYROXWLRQDU\ OHDGHUV
LQ WDOHV RI D UHYROXWLRQ DW D ODWHU VWDJH ZKHQ WKH UHYROXWLRQ LV WDNHQ DV SDUW
RI D QDWLRQ EXLOGLQJ SURMHFW XQGHU PXFK PRUH LQVWLWXWLRQDOL]HG FRQGLWLRQV
WKDQ WKRVH WKH UHYROXWLRQDULHV OLYHG XQGHU
7KHUH PD\ KDYH EHHQ D VKLIW LQ 1LFDUDJXDQ LQ WKH SHULRG EHWZHHQ WKH
WZR VWXGLHV ZKLFK PD\ DFFRXQW IRU WKH GLIIHUHQFH LQ FRQFOXVLRQ 0DU[
/HQLQ DQG RWKHU QRQ/DWLQ $PHULFDQ WKLQNHUV VHHP WR EH VWXGLHG OHVV WKDQ
EHIRUH $QRWKHU SDUW RI WKH H[SODQDWLRQ PD\ KRZHYHU DOVR EH WKH GLIIHU
HQFH LQ SHUVSHFWLYH :KLOH /DQFDVWHU VHHPV WR ORRN DW WKH URRWV RI WKH
1LFDUDJXDQ VLWXDWLRQ DOPRVW SXUHO\ LQ WHUPV RI WKH FRQVFLRXVQHVVRSLQ
LRQV RI LQGLYLGXDO 1LFDUDJXDQV , FDQQRW KHOS EXW DOVR LQFOXGH PDWHULDO
IDFWRUV WKDW UHVWULFWHG RU SHUPLWWHG ZKDW RSWLRQV ZHUH DYDLODEOH DW DQ\
JLYHQ WLPH (YHQ LI RQH DJUHHV ZLWK WKH W\SLFDO 1LFDUDJXDQ SHUVSHFWLYH
WKDW IRUHLJQ LQIOXHQFH LV ODUJHO\ PHFKDQLFDO DQG QRW WKH UHVXOW RI KLVWRULF
DJHQF\ LW VKRXOG QHYHUWKHOHVV QRW EH HQWLUHO\ GLVFRXQWHG DV LUUHOHYDQW WR
ZKDW 1LFDUDJXD LV OLNH WRGD\
 7KH SROLWLFV RI KLVWRU\
 3FGPB "F?NRCP

$AMLMKGA BCTCJMNKCLR CVNCAR?RGMLQ ?LB

NCPACNRGMLQ

$Q LQWHUHVWLQJ IHDWXUH RI 1LFDUDJXDQ SROLWLFDO GLVFRXUVH , KDYH IRXQG LV

WKH SDUW GHGLFDWHG WR HFRQRPLF DVSHFWV ,Q WKLV FKDSWHU ZH ZLOO ORRN DW
WKH FKDQJLQJ HFRQRPLF VLWXDWLRQ RI 1LFDUDJXD DQG WKH SODQV IRU HFRQRPLF
GHYHORSPHQW DQG KRZ WKHVH DUH MXGJHG E\ WKH 1LFDUDJXDQ SXEOLF
7KH 6RPR]DV IURP WKH V XQWLO  WKH 6DQGLQLVWDV XQWLO 
DQG WKH /LEHUDO JRYHUQPHQWV XS XQWLO  UHSUHVHQWHG YHU\ GLIIHUHQW
DSSURDFKHV WR DFKLHYLQJ HFRQRPLF GHYHORSPHQW (DFK RQH RI WKHVH ZDV
FRQQHFWHG WR D WKHRU\ RI KRZ GHYHORSPHQW FRXOG EH DFKLHYHG IRU WKLUG
ZRUOG FRXQWULHV WKDW ZDV SRSXODU DW WKH WLPH DW DQ LQWHUQDWLRQDO OHYHO
7KLV LV QRW DOZD\V DFNQRZOHGJHG E\ DOO 1LFDUDJXDQV 1LFDUDJXDQV WHQG WR
SXW PRUH HPSKDVLV RQ WKH ZLVKHV DQG YLHZV RI WKH 1LFDUDJXDQ JRYHUQPHQW
DW WKH WLPH WKDQ RQ LQWHUQDWLRQDO WUHQGV $W WKH VDPH WLPH 1LFDUDJXD GRHV
VZLWFK EHWZHHQ GLIIHUHQW WKHRULHV IRU KRZ GHYHORSPHQW FDQ EH DFKLHYHG
PRUH VR WKDQ RWKHU FRXQWULHV DQG LW FDQ EH DUJXHG WKDW WKLV VZLWFK LV
WKH UHVXOW RI GHFLVLRQV PDGH PDLQO\ E\ 1LFDUDJXDQV DQG QRW IRUHLJQ SRZ
HUV 7KH WKUHH GHYHORSPHQW PRGHOV UHSUHVHQW WKUHH EDVLF VHWXSV RI WKH
HFRQRP\ 7KH 6RPR]D SHULRG LQ ZKLFK D QDWLRQDO ERXUJHRLVLH LV EXLOW XS
WKH FRXQWU\ GHYHORSV HFRQRPLFDOO\ EXW LQFRPH JDSV DUH KLJK WKH /LEHUDO
SHULRG LQ ZKLFK IRUHLJQ FDSLWDO LV JLYHQ DFFHVV DQG FRQWUROV PRVW RI WKH
HFRQRP\ DQG WKH 6DQGLQLVWD SHULRG LQ ZKLFK LW LV D VWDWHG JRDO E\ WKH VWDWH
WR GLPLQLVK LQFRPH JDSV ZKLOH LQFUHDVLQJ RYHUDOO SURGXFWLRQ OHYHOV
0RVW IRUHLJQHUV LQLWLDOO\ WKLQN WKDW DOO 6DQGLQLVWDV DUH LQ IDYRU RI D
6RYLHWVW\OH FRPPDQG HFRQRP\ DQG DOO /LEHUDOV IDYRU ODLVVH] IDLUH VW\OH
FDSLWDOLVP 1LFDUDJXDQ UHDOLW\ LV D ELW PRUH FRPSOH[ DQG PRVW 1LFDUD
JXDQV VHHP WR IDYRU DW OHDVW VRPH VWDWH LQWHUYHQWLRQ DQG VRPH OHYHO RI
GHFHQWUDOL]HG GHFLVLRQ PDNLQJ RQ LVVXHV UHODWLQJ WR HFRQRPLFV $V SDUW RI
WKLV FKDSWHU , VKRZ KRZ 1LFDUDJXDQV XVH YHU\ GLIIHUHQW FULWHULD IRU MXGJ
LQJ WKH VXFFHVV RI WKH WKUHH JRYHUQPHQWV 7KH 6DQGLQLVWDV RI WKH V DUH
MXGJHG E\ ZKHUH WKHLU SROLFLHV FRXOG KDYH OHG KDG IRUHLJQ LQWHUYHQWLRQ


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

FHDVHG DQG WKH 6DQGLQLVWDV QRW ORVW WKH  HOHFWLRQV 7KH 6RPR]DV DQG
/LEHUDOV DUH LQVWHDG MXGJHG E\ ZKDW WKH HFRQRPLF UHDOLW\ IRU 1LFDUDJXDQV
ZDV GXULQJ WKH WLPH WKH\ ZHUH LQ SRZHU
:KLOH WKH GLVFXVVLRQ RQ SROLWLFDO KLVWRU\ VKRZHG XV KRZ LQ PDQ\ DV
SHFWV 6DQGLQLVWDV DQG RWKHU JURXSV OHJLWLPL]H WKHPVHOYHV WKURXJK WKHLU
KLVWRULF SDVW LQ WKH DVSHFW RI HFRQRPLF SROLFLHV 6DQGLQLVPR VWDQGV RXW LQ
WKDW LW LV OHJLWLPL]HG WKURXJK SRVVLEOH LPSURYHPHQWV LQ WKH IXWXUH UDWKHU
WKDQ WKH SDVW
,Q WKH ILUVW SDUW RI WKLV FKDSWHU , RXWOLQH WKH LQWHUQDWLRQDO GLVFRXUVH
DERXW GHYHORSPHQW RQ D ZRUOG VFDOH VLQFH WKH 6HFRQG :RUOG :DU ::,,  ,Q
WKH VHFRQG SDUW RI WKLV FKDSWHU , IRFXV RQ KRZ WKH HFRQRPLF VLWXDWLRQ RI
1LFDUDJXD DQG LWV JRYHUQPHQW·V HFRQRPLF SROLFLHV FKDQJHG EHWZHHQ WKH
6RPR]D JRYHUQPHQW XQWLO WRGD\ , DOVR VKRZ ZKDW WKHRULHV ZHUH HPSOR\HG
ZKHQ FUHDWLQJ WKHVH SROLFLHV ,Q WKH IRXUWK SDUW , ORRN DW WKH GLIIHUHQFHV LQ
KRZ 1LFDUDJXDQV MXGJH WKH GLIIHUHQW KLVWRULF SHULRGV DQG WKH JRYHUQPHQWV
WKDW VWRRG DQG VWDQG EHKLQG WKH HFRQRPLF SROLFLHV
7KH UHVHDUFK IRU WKLV FKDSWHU PDLQO\ WRRN SODFH DPRQJ 6DQGLQLVWD
SURIHVVLRQDOV DQG PLQLVWU\ ZRUNHUV DQG WKH IRXQGHUV RI WKH RUJDQL]DWLRQ
¶$PLJRV· 7KHVH JURXSV ZHUH KDSS\ WR HQJDJH LQ GLVFXVVLRQV DERXW HFR
QRPLF SROLF\ LQ WKH SDVW DQG WKH SURIHVVLRQDOV ZKR ZHUH VWLOO ZRUNLQJ ZHUH
WKH PRVW LQWHUHVWHG LQ UHODWLQJ LW WR WKH FXUUHQW JRYHUQPHQW DQG ZKDW SRV
VLELOLWLHV H[LVW WRGD\ %RWK JURXSV GLVFXVVHG LW DW D YHU\ WKHRUHWLFDO OHYHO
7KH\ KHOSHG PH ILQG LPSRUWDQW 1LFDUDJXDQ OLWHUDWXUH RQ WKH VXEMHFW 7KLV
KHOS GRHV QRW VKRZ LQ WHUPV RI TXRWHV DV PXFK DV FRKHUHQFH LQ P\ SUH
VHQWDWLRQ , ZRXOG KDYH WR UHDG DERXW D SDUWLFXODU IDFW PDQ\ WLPHV DQG
WKHQ GLVFXVV LW ZLWK LQIRUPDQWV EHIRUH , ZRXOG XQGHUVWDQG ZKHWKHU LW LV
JHQHUDOO\ VHHQ DV LPSRUWDQW

'HYHORSPHQW WKHRULHV
6LQFH ::,, D IHZ WKHRULHV RQ KRZ GHYHORSPHQW FDQ EH DFKLHYHG E\ WKLUG
ZRUOG FRXQWULHV KDYH EHHQ FHQWUDO 7KHVH LQIOXHQFHG WKH GHEDWH RQ WKH
VWUDWHJLHV IRU DFKLHYLQJ GHYHORSPHQW WKDW KDYH EHHQ XVHG LQ PRVW WKLUG
ZRUOG FRXQWULHV LQFOXGLQJ 1LFDUDJXD %HIRUH ZH ORRN DW WKH FRQFUHWH
SROLFLHV GLIIHUHQW JRYHUQPHQWV LPSOHPHQWHG DV SDUW RI WKHLU GHYHORSPHQW
SURJUDP ZH ORRN DW JHQHUDO WKHRULHV RI GHYHORSPHQW ZKLFK IRUPHG WKH
EDVLV IRU WKHVH SROLF\ GHFLVLRQV
'HYHORSPHQW WKHRULHV 

0DLQVWUHDP PRGHUQL]DWLRQ GHYHORSPHQW WKHRULHV

7KH LQWHUQDWLRQDO WUHQG LQ WKH WZR GHFDGHV LPPHGLDWHO\ DIWHU ::,, ZDV
WR DSSO\ SROLFLHV LQ WKLUG ZRUOG FRXQWULHV WKDW FRSLHG WKH KLVWRULFDO PRGHOV
VHW E\ ZHVWHUQ FRXQWULHV 7KH 8QLWHG 1DWLRQV DQG RWKHUV WULHG WR HPSOR\
WKLV WKHRU\ LQ WKHLU GHYHORSPHQW SURJUDPV DURXQG WKH ZRUOG 7KLV WKHRU\
LV NQRZQ DV ´PRGHUQL]DWLRQ WKHRU\µ 7KH FRXQWULHV RI WKH WKLUG ZRUOG
ZHUH VLPSO\ ´EHKLQGµ DQG KDG WR SOD\ FDWFKXS WR UHDFK WKH VDPH OHYHO RI
PRGHUQLW\ WKDW WKH ILUVW ZRUOG HQMR\HG 6WUDWHJLHV EXLOW XSRQ WKLV WKHRU\
HPSKDVL]HG LQYHVWPHQWV LQ VWDWH DQG SULYDWH VHFWRUV FRXSOHG ZLWK WUDQVIHU
RI WHFKQRORJ\ IURP WKH ILUVW ZRUOG :DOOHUVWHLQ  6PXNNHVWDG  
)RU WKH FRXQWULHV WKDW DOOLHG ZLWK WKH 8QLWHG 6WDWHV PRGHOV VXFK DV
WKH SKDVH PRGHO RI 86 $PHULFDQ HFRQRPLVW DQG SROLWLFDO WKHRULVW :DOW
:KLWPDQ 5RVWRZ 5RVWRZ   VHH DOVR ³ 0DLQVWUHDP PRGHUQL]DWLRQ
GHYHORSPHQW WKHRULHV S  ZHUH GHYHORSHG DQG HPSOR\HG 7KHVH PRGHOV
RSHUDWH ZLWK WKH LGHD WKDW D SDUWLFXODU ¶LPSXOVH· RI VRPH NLQG QHHGV WR
VWDUW D SKDVH RI GHYHORSPHQW ZKLFK ZLOO JHQHUDOO\ PRGHUQL]H D FRXQWU\
$FFRUGLQJ WR WKHVH PRGHOV LI WKH LPSXOVH WR VWDUW GHYHORSPHQW RULJLQDWHV
IURP RXWVLGH WKH FRXQWU\³WUXH LQ DOO FDVHV RI PRGHUQL]DWLRQ LQLWLDWHG
WKURXJK WKH 8QLWHG 6WDWHV³WKH PRGHUQL]DWLRQ SKDVH QHHGV WR EH RULHQWHG
WRZDUGV FUHDWLQJ H[SRUW JRRGV WR VHOO RQ D ZRUOG PDUNHW
([SRUW RULHQWHG VWUDWHJLHV IRU GHYHORSPHQW PDLQO\ EXLOG RQ WKH PRGHO
RI WKH %ULWLVK SROLWLFDO HFRQRPLVW 'DYLG 5LFDUGR ²  5LFDUGR·V
PRGHO SURFODLPV WKDW HYHQ LI D FRXQWU\ LV OHVV SURGXFWLYH LQ DOO VHFWRUV
LW ZLOO VWLOO JDLQ IURP HQWHULQJ D IUHH WUDGH DJUHHPHQW ZLWK PRUH GHYHO
RSHG FRXQWULHV 7KH LPSRUWDQW SDUW LV WKDW WKH JLYHQ FRXQWU\ VKRXOG VWRS
SURGXFLQJ D UDQJH RI JRRGV DQG LQVWHDG IRFXV RQO\ RQ RQH JRRG ZKLFK
LW LV UHODWLYHO\ EHWWHU DW SURGXFLQJ DQG WKHQ IRFXV RQ H[SRUWLQJ LW 7KLV
LV WHUPHG DV D FHUWDLQ FRXQWU\ KDYLQJ D ¶FRPSDUDWLYH DGYDQWDJH· RI SUR
GXFLQJ ZLWKLQ D FHUWDLQ ILHOG $FFRUGLQJ WR 5LFDUGR WKH FRXQWU\ VKRXOG
WKHQ LPSRUW DOO JRRGV LQ ZKLFK LW GRHV QRW KDYH D FRPSDUDWLYH DGYDQWDJH
5LFDUGR  6PXNNHVWDG  

1HROLEHUDOLVP

$ FXUUHQW YHUVLRQ RI PRGHUQL]DWLRQ WKHRU\ LV QHROLEHUDOLVP WKH WKHRU\

EHKLQG WKH SROLFLHV XQLYHUVDOO\ HPSOR\HG E\ FDSLWDOLVW VWDWHV VLQFH WKH
WLPH RI 5RQDOG 5HDJDQ 3UHVLGHQW RI WKH 8QLWHG 6WDWHV LQ ² DQG
%DURQHVV 0DUJDUHW +LOGD 7KDWFKHU 3ULPH 0LQLVWHU RI WKH 8QLWHG .LQJGRP
 7UDGLWLRQDO $W WKLV VWDJH LQGXVWU\ KDVQ·W PDGH LWV HQWUDQFH \HW
VRFLHW\ DQG DOPRVW DOO SURGXFWLRQ LV FRQGXFWHG LQ WKH WUDGL
WLRQDO ZD\ 7KDW GRHV QRW PHDQ WKDW VRFLHW\ LV VWDWLF
&KDQJHV FDQ KDSSHQ EXW QRQH RI WKHVH ZLOO IXQGD
PHQWDOO\ PRGHUQL]H WKH FRXQWU\ RU LQFUHDVH OLYLQJ
VWDQGDUGV VXEVWDQWLDOO\
 3UHFRQGLWLRQV $W WKLV VWDJH PHFKDQLVPV RI PDVV SURGXFWLRQ DUH
IRU WDNH RII LQWURGXFHG 7KH SRLQW RI DOO HIIRUWV RI GHYHORSPHQW
SROLFLHV PXVW EH WR UHDFK WKLV VWDJH
 7DNH RII 7KLV LV WKH WLSSLQJ SRLQW ZKHQ RQH UHDOO\ FDQ VD\
WKDW WKH QHZ SURGXFWLRQ PRGH WDNHV RYHU 7KLV KDS
SHQV GXH WR DQ LPSXOVH 7KH LPSXOVH FDQ EH LQWHUQDO
DV WKH  UHYROXWLRQ ZDV LQ *HUPDQ\ RU LW FDQ
EH H[WHUQDO VXFK DV WKH KLJK GHPDQG IRU 6ZHGLVK
SURGXFWV WKURXJKRXW WKH WK FHQWXU\ RQ WKH LQWHU
QDWLRQDO PDUNHW
 'ULYH WR 1RZ WKH V\VWHP PDWXUHV DQG ZRUNLQJ PHWKRGV DUH
PDWXULW\ VWDQGDUGL]HG DQG WKH FRRSHUDWLRQ RI WKH YDULRXV HFR
QRPLF DFWRUV IRUPDOL]HG $W WKLV VWDJH IRUHLJQ WUDGH
UHDOO\ VWDUWV WR EHFRPH LPSRUWDQW
 $JH RI PDVV 1RZ GRPHVWLF GHPDQG UHDFKHV D OHYHO ZKHUH LW
FRQVXPSWLRQ PDNHV HFRQRPLF VHQVH WR SURGXFH IRU LW $OO WKH EDVLF
QHHGV RI WKH SRSXODWLRQ DUH EHLQJ FRYHUHG
5RVWRZ·V SKDVH PRGHO $IWHU WKH 6HFRQG :RUOG :DU ::,,  WKH 86 HFRQRPLVW
:DOW :KLWPDQ 5RVWRZ FUHDWHG DQ RYHUYLHZ RI VHYHUDO SKDVHV RI HFRQRPLF
GHYHORSPHQW ZKLFK KH EHOLHYHG D FRXQWU\ QHHGHG WR PRYH WKURXJK LQ
RUGHU WR UHDFK WKH VWDWXV RI D IXOO\ GHYHORSHG FRXQWU\ 5RVWRZ   
5RVWRZ·V PRGHO LV PHUHO\ RQH RI VHYHUDO VLPLODU SKDVH PRGHOV WKDW ZHUH
FUHDWHG EHWZHHQ  DQG  ZKLFK ZHUH VHHQ DV DV H[SODLQLQJ GHYHO
RSPHQW LQ WKH YLHZ RI WKH 8QLWHG 6WDWHV DQG LWV DOOLHV :DOOHUVWHLQ 
 


'HYHORSPHQW WKHRULHV 

LQ ² 7KLV FXUUHQW YHUVLRQ FRQWLQXHV DORQJ WKH OLQHV RI PRGHUQL]D

WLRQ WKHRU\ EXW SXWV D ORW RI HPSKDVLV RQ WKH H[FKDQJH PRGHO RI 5LFDUGR
 DQG JHQHUDO FODVVLFDO HFRQRPLF WKHRU\ 6DQGEURRN    7KH\
EHOLHYH WUDGH LV JRRG IRU DOO LQYROYHG SDUWLHV DW DOO WLPHV DOVR WKRVH ZKR
RYHUDOO DUH OHVV HIILFLHQW LQ SURGXFWLRQ PHDVXUHG LQ UHTXLUHG ODERU WLPH
SHU SURGXFHG XQLW 5LFDUGR  FKDSWHU  
6HFRQGO\ DQG GLIIHULQJ IURP HDUO\ PRGHUQL]DWLRQ WKHRU\ WKRVH DUJX
LQJ WKH FDVH IRU QHROLEHUDOLVP KROG WKDW WRR PXFK VWDWH LQWHUYHQWLRQ LQ WKH
HFRQRP\ LV DQ HYLO )RU WKH HFRQRP\ WR WXUQ ¶KHDOWK\· JRYHUQPHQW VKRXOG
QRW KDYH ¶WRR PXFK· RI DQ HQJDJHPHQW LQ WKH GHYHORSPHQW DQG HFRQRPLFV
RI LWV UHVSHFWLYH VXEMHFWV DQG JRYHUQPHQW RYHUVLJKW QHHGV WR EH UROOHG
EDFN 1HROLEHUDOLVP LV VWURQJO\ LQ IDYRU RI VHOOLQJ SXEOLF SURSHUW\ DV D ZD\
WR FDQFHO QDWLRQDO GHEW 0XFK RI WKLV WKHRU\ LV VHHQ E\ QHROLEHUDOV DV EHLQJ
RI XQLYHUVDO SULQFLSOHV DQG DV RQH WKDW VKRXOG EH XVHG E\ JRYHUQPHQWV
LQGHSHQGHQWO\ RI WLPH DQG VSDFH DQG QRW EHKROGLQJ WR VSHFLILF SHULSKHUDO
RU VHPLSHULSKHUDO FRXQWULHV $VVRFLDWHG ZLWK WKH QHROLEHUDO DSSURDFK DUH
WKH :RUOG %DQN :% DQG WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0)  7KURXJKRXW
WKH V LW VHW IRUWK D QXPEHU RI 6WUXFWXUDO $GMXVWPHQW 3URJUDPV 6$3V 
WKDW ZHUH VXSSRVHG WR DFFRPPRGDWH ERWK GHYHORSPHQW DQG JHW ULG RI WKH
GHEW WKHVH FRXQWULHV KDG UXQ XS
2SSRQHQWV KROG WKDW WKH SURSRQHQWV RI QHROLEHUDOLVP LQ UHDOLW\ KDYH
D JRDO RI H[WHQGLQJ H[SORLWDWLRQ RI WKH WKLUG ZRUOG³ZKLFK ZDV QHFHVVDU\
DIWHU WKH HFRQRPLF SUREOHPV LQ WKH V UHVXOWLQJ IURP WKH RLO FULVLV³DQG
YHU\ RIWHQ WKH QHROLEHUDOV DUH GLUHFWHG QRW E\ UDWLRQDO DUJXPHQWV EXW WKHLU
RZQ HFRQRPLF LQWHUHVWV

&RXQWHUKHJHPRQLF GHYHORSPHQW WKHRULHV

)RU VRFLDOLVW UHYROXWLRQDULHV GHYHORSPHQW JHQHUDOO\ LV VHHQ DV HTXLYDOHQW
WR WKH LQWURGXFWLRQ RI VRFLDOLVP 7KH FODVVLF PRGHO DFFRUGLQJ WR ZKLFK
0DU[LVWV KDQGOHG UHYROXWLRQV LQ WKH WK FHQWXU\ LQ SHULSKHUDO FRXQWULHV
ZDV WR IROORZ 5XVVLDQ UHYROXWLRQDU\ 9ODGLPLU ,O\LFK /HQLQ ² LQ DV
VHUWLQJ WKDW WKH FRQGLWLRQV IRU FRPSOHWHO\ VRFLDOL]HG PHDQV RI SURGXFWLRQ³
WKDW ZKLFK LV FRPPRQO\ WHUPHG ¶FRPPXQLVP·³ZRXOG ILUVW KDYH WR EH EXLOW
XS ,Q WKLV SHULRG ZKLFK /HQLQ FDOOV ¶PRQRSRO\ VWDWHFDSLWDOLVP· WKH VWDWH
ZRXOG WDNH FRQWURO RI DQG UDWLRQDOL]H SURGXFWLRQ LQ RUGHU WR SUHSDUH WKH
FRXQWU\ HFRQRPLFDOO\ DQG FXOWXUDOO\ IRU VRFLDOLVP 7KLV FRXOG LQ VRPH
FDVHV DOVR KDSSHQ DV SDUW RI DQ XQIRUHVHHQ FRQVHTXHQFH RI JHQHUDO FDSLWDO
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

LVW GHYHORSPHQW VXFK DV LQ WKH FDVH RI *HUPDQ\ ZKHUH VWDWHFRQWURO ZDV

ODUJHO\ LQWURGXFHG E\ WKH UXOHUV GXULQJ WKH )LUVW :RUOG :DU ::,  /HQLQ
EHOLHYHG WKLV RSHQHG WKH SRVVLELOLW\ IRU VRFLDOLVP DV D QH[W VWHS DQG DU
JXHG 6RYLHW 5XVVLD VKRXOG FRS\ LW /HQLQ D E  DV D ILUVW VWHS
WRZDUGV VRFLDOLVP
:KHQ /HQLQ IRUPXODWHG WKH PRGHO RWKHU VRFLDOLVWV VXFK DV 3ROLVK
*HUPDQ UHYROXWLRQDU\ 5RVD /X[HPEXUJ ² FKDOOHQJHG KLP RQ
WKH ZD\ WKLV WUDQVLWLRQ SHULRG ZDV WR EH RUJDQL]HG /HQLQ  EHOLHYHV
RQH VKRXOG XVH DOO GLFWDWRULDO PHDQV QHFHVVDU\ WR ¶KDVWHQ· GHYHORSPHQW
DORQJ ZKLOH /X[HPEXUJ  KROGV WKDW SDUOLDPHQWDU\ GHPRFUDF\ DQG
IUHHGRP WR RUJDQL]H³DOVR IRU WKH RSSRVLWLRQ³KDYH WR EH LQ SODFH LI WKH
UHYROXWLRQ LV WR UHSUHVHQW IUHHGRP LQ DQ\ PHDQLQJIXO ZD\ 0DQ\ 0DU[
LVWV KDYH VLQFH FRPH WR WKH FRQFOXVLRQ WKDW QR JHQHUDOL]HG PRGHO RI D
WUDQVLWLRQ SHULRG WRZDUG VRFLDOLVP FDQ EH PDGH +DUULV    ,Q WKH
FDVHV ZKHUH VRFLDOLVWV KDYH RUJDQL]HG VXFK D WUDQVLWLRQ SHULRG WKH\ YDULHG
KHDYLO\ LQ SROLWLFDO FRQWHQW DQG LQ WKH OHQJWK RI WLPH WKH\ KDYH ODVWHG <HW
VRPH IRUP RI PRQRSRO\ VWDWHFDSLWDOLVW WUDQVLWLRQ SHULRGV ZHUH RUJDQL]HG
LQ PRVW FRXQWULHV ZKLFK XQGHUZHQW VRFLDOLVW H[SHULPHQWV LQ WKH IROORZLQJ
GHFDGHV ,Q &XED WKH SHULRG RIILFLDOO\ ODVWHG  \HDUV GXULQJ ZKLFK SULYDWH
SURSHUW\ ZDV QDWLRQDOL]HG +DUULV   ZKLOH LQ 1LFDUDJXD GXULQJ WKH
V LW QHYHU FDPH WR WKDW

6RFLDOLVW YHUVLRQV RI PRGHUQL]DWLRQ WKHRU\

,Q WKH ILUVW IHZ \HDUV DIWHU ::,, 6RYLHWDOOLHG FRXQWULHV IROORZHG D VLPLODU
PRGHUQL]DWLRQ PRGHO DV WKDW ZKLFK WKH ZHVW HPSOR\HG ZLWK WKH 6RYLHW
8QLRQ DV WKH OHDGLQJ FRXQWU\ UDWKHU WKDQ WKH 8QLWHG 6WDWHV RU :HVWHUQ
(XURSH :DOOHUVWHLQ    ,QVWHDG RI GLUHFWO\ VZLWFKLQJ WR VRFLDOLVP
PDQ\ 6RYLHWDOOLHG 0DU[LVWV EHOLHYHG WKLUG ZRUOG FRXQWULHV ZKLFK KDG QRW
GHYHORSHG DQ LQWHUQDO FDSLWDOLVW V\VWHP ZRXOG KDYH WR GR VR ILUVW .DUO
+HLQULFK 0DU[ KLPVHOI VWDWHG DW RQH WLPH WKDW ´>W@KH FRXQWU\ WKDW LV PRUH
GHYHORSHG LQGXVWULDOO\ RQO\ VKRZV WR WKH OHVV GHYHORSHG WKH LPDJH RI
LWV RZQ IXWXUHµ 0DU[  3UHIDFH  ,Q OLQH ZLWK WKLV UHDVRQLQJ WKHVH
0DU[LVWV DUJXHG WKDW WKH RYHUWKURZ RI WKH V\VWHP E\ D VRFLDOLVW UHYROXWLRQ
LV QRW D SRVVLELOLW\ XQWLO RQH KDV D ODUJH SUROHWDULDQ PRYHPHQW 8QWLO
WKHQ UDGLFDOV ZLOO MXVW KDYH WR SDUWLFLSDWH LQ UHJXODU HOHFWLRQV 3DOPHU
   (YHQ SDUWLFLSDWLRQ LQ ODERU XQLRQV ZLOO QRW KHOS DQ\ DV WKH
PHPEHUV RI WKHVH DUH PDLQO\ DUWLVDQV SUHFDSLWDOLVW ZRUNHUV ZKR RQH
'HYHORSPHQW WKHRULHV 

QHYHU VKRXOG KRSH WR ZRUN IRU D VRFLDOLVW UHYROXWLRQ *RXOG   
0DU[ TXDOLILHG KLV VWDWHPHQW DV RQO\ DSSO\LQJ WR ZHVWHUQ (XURSH DQG KH
VDLG RWKHU SDUWV RI WKH ZRUOG ZRXOG QRW QHFHVVDULO\ KDYH WR JR WKURXJK VXFK
D SKDVH RI FDSLWDOLVP 0DU[   7KLV ZDV DSSDUHQWO\ QRW DFNQRZOHGJHG
E\ 6RYLHWDOOLHG FRXQWULHV LPPHGLDWHO\ IROORZLQJ ::,, ZKHQ WKH\ VHW XS
WKHLU SODQV IRU ZKHUH WKH\ WKRXJKW UHYROXWLRQV ZRXOG PDNH VHQVH RU ZHUH
SRVVLEOH

6RPH 0DU[LVWV LQ RWKHU SDUWV RI WKH ZRUOG ZHQW HYHQ IXUWKHU DORQJ
WKHVH OLQHV 7KH %ULWLVK FRPPXQLVW %LOO :DUUHQ   ZKR RSHUDWHG
ZLWKLQ WKH 0DU[LVW SDUDGLJP GHFODUHG WKDW FDSLWDOLVW GHYHORSPHQW LV FRQ
WUDGLFWRU\ DQG KH FRQFOXGHG WKDW LQ WKH WKLUG ZRUOG WKHUH ZDV VWLOO KDG
ZKDW KH FDOOHG ¶WKH FRQWLQXLQJ WUDQVIRUPDWLYH SRWHQWLDO· RI FDSLWDOLVP DQG
LPSHULDOLVP 7R VXSSRUW KLV FODLP KH SRLQWHG WR WKH JURZWK LQ PDQXIDF
WXULQJ RXWSXW LQ WKLUG ZRUOG FRXQWULHV LQ DEVROXWH QXPEHUV :DUUHQ 
 DQG DOVR WKH JURZWK RI PDQXIDFWXULQJ DV D SHUFHQWDJH RI WKH *URVV
'RPHVWLF 3URGXFW *'3 LQ VHYHUDO WKLUG ZRUOG FRXQWULHV EHWZHHQ  DQG
 6LPLODUO\ LQ WRGD\·V &KLQD WKH &RPPXQLVW 3DUW\ RI &KLQD &3R& DOVR
PDNHV XVH RI WKH 0DU[LVW IUDPHZRUN GHVSLWH DOO FKDQJHV WKH QDWXUH RI
WKH UHJLPH KDV XQGHUJRQH LQ UHFHQW \HDUV DQG DUJXHV WKH SDUW\·V UHVSRQ
VLELOLW\ OLHV LQ IROORZLQJ ¶WKH WKUHH UHSUHVHQWDWLRQV· ´UHSUHVHQWLQJ WKH
GHPDQGV IRU WKH GHYHORSPHQW RI DGYDQFHG VRFLDO SURGXFWLYH IRUFHV WKH
GLUHFWLRQ RI DGYDQFHG FXOWXUH DQG WKH IXQGDPHQWDO LQWHUHVWV RI WKH JUHDW
HVW PDMRULW\ RI WKH SHRSOHµ +ROELJ   ² PHDQLQJ 5DGLFDOV VKRXOG
VXSSRUW WKH GHPDQGV RI HQJLQHHUV DQG FDSLWDOLVWV IRU IXUWKHU FDSLWDOLVW
GHYHORSPHQW UDWKHU WKDQ IROORZ SHDVDQWV DQG ZRUNHUV DQG RWKHU JURXSV
ZLWK ZKLFK /HIWLVWV WUDGLWLRQDOO\ KDYH EHHQ FRQQHFWHG

7KH 6RYLHW 8QLRQ QHYHU ZHQW TXLWH DV IDU LQ GLVPLVVLQJ VRFLDOLVW LGHDOV
IRU WKH VDNH RI GHYHORSPHQW DV WKHVH WZR H[DPSOHV VKRZ DQG WKHUH ZDV
RQH GLIIHUHQFH WR EH QRWHG LQ KRZ WKH 6RYLHW 8QLRQ UHODWHG WR WKH FRXQWULHV
LQ ZKLFK LW GLUHFWHG GHYHORSPHQW LQ FRPSDULVRQ ZLWK KRZ WKH 8QLWHG
6WDWHV DQG ZHVWHUQ (XURSHDQ SRZHUV GLG LW 7KH 6RYLHW 8QLRQ GLG QRW
KDYH FXUUHQW RU IRUPHU FRORQLHV DQG WKRVH WKLUG ZRUOG FRXQWULHV ZKR WKH\
ZHUH DOOLHG ZLWK LQ SUDFWLFH ZHUH JHQHUDOO\ HQFRXUDJHG WR VHHN D VWDWXV DV
QRQDOLJQHG FRXQWULHV UDWKHU WKDQ IRUPDOO\ DOO\LQJ ZLWK WKH 6RYLHW 8QLRQ
:DOOHUVWHLQ    7KDW PD\ EH ZK\ WKH LGHD WKDW WKH 6RYLHW 8QLRQ
ZRXOG VXSSRUW D FRXQWU\ ZLWK D FDSLWDOLVW VWUXFWXUH LV VHOGRP PHQWLRQHG
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

'HSHQGHQF\ 7KHRU\

:LWK WKH JUDGXDO UHDOL]DWLRQ WKDW PRGHUQL]DWLRQ WKHRU\ GLG QRW EULQJ WKH
ZHOIDUH WR WKH PDVVHV WKH ZD\ LW ZDV SURPLVHG RU DW OHDVW H[SHFWHG LQ
PXFK RI WKH WKLUG ZRUOG FULWLFLVP RI PDLQVWUHDP WKHRULHV RI GHYHORSPHQW
VWDUWHG WR DSSHDU LQ WKH V 2QH RI WKH PRUH SURPLQHQW JURXS RI FULWLFV
ZDV NQRZQ DV 'HSHQGHQF\ 7KHRULVWV 7KHLU PDLQ WDUJHW IRU FULWLFLVP LV WKH
XQGHUO\LQJ SUHPLVH LQ PDLQVWUHDP GHYHORSPHQW WKHRULHV WKDW WKH GHYHO
RSPHQW LQ RQH FRXQWU\ ZRUNV LQGHSHQGHQWO\ RI H[WHUQDO LQIOXHQFHV IURP
RWKHU FRXQWULHV :DOOHUVWHLQ   
8QGHU WKH KHDGLQJ 'HSHQGHQF\ 7KHRU\ YDULRXV DSSURDFKHV HPSKDVL]H
WKDW D FRQVWDQW VWUHDP RI ZHDOWK LV WUDQVIHUUHG IURP WKH GHYHORSLQJ WKLUG
ZRUOG FRXQWULHV SHULSKHU\ WR WKH GHYHORSHG ILUVW ZRUOG FRXQWULHV FRUH 
6RPH WKHRULVWV K\SRWKHVL]H RSHUDWLQJ ZLWK D PLGGOH OD\HU RI VHPLSHULSKH
U\ DFWLQJ DV D EXIIHU ]RQH EHWZHHQ FRUH DQG SHULSKHU\ VRFLHWLHV :DOOHU
VWHLQ  ²  7KH IXQGDPHQWDO GLIIHUHQFH EHWZHHQ ILUVW ZRUOG DQG
WKLUG ZRUOG WKH\ VHH LV ZKDW LV SURGXFHG 7KLUG ZRUOG FRXQWULHV JHQHUDOO\
VHOO UDZ PDWHULDO DQG SURGXFH DJULFXOWXUDO JRRGV ZKHUHDV ILUVW ZRUOG FRXQ
WULHV SURGXFH LQGXVWULDO JRRGV 7KH WZR WKHQ WUDGH RQHDQRWKHU·V SURGXFWV
ZLWK HDFK RWKHU 2YHU WLPH WKH\ QRWH WKH SULFH RI UDZ PDWHULDO DQG DJUL
FXOWXUDO SURGXFWV JRHV GRZQ LQ FRPSDULVRQ WR WKH SULFH RI PDQXIDFWXUHG
JRRGV 7KLV PHDQV WKH WKLUG ZRUOG FDQ DIIRUG OHVV DQG OHVV RI WKH LQGXVWULDO
JRRGV WKH\ DUH LPSRUWLQJ IURP WKH ILUVW ZRUOG DQG WKLV OHDGV WR REYLRXV
HFRQRPLF SUREOHPV IRU WKH WKLUG ZRUOG 3UHELVFK  6LQJHU   7KH\
DOVR DUJXH WKDW PXFK RI WKH KLJK VWDQGDUG RI OLYLQJ RI WKH PDVVHV RI WKH
ILUVW ZRUOG LV D SURGXFW RI WKLV WUDQVIHU RI ZHDOWK DQG WKH YDULRXV W\SHV
RI SRZHUV WKH FRXQWULHV RI WKH ILUVW ZRUOG KDYH PHGLD PLOLWDU\ SROLWLFDO
HWF DUH DFWLYHO\ HPSOR\HG WR NHHS WKLV VWDWH RI DIIDLUV LQ SODFH
2QH RI WKH PRVW ZHOONQRZQ JURXS RI QRQUDGLFDO IROORZHUV RI 'HSHQ
GHQF\ 7KHRU\ DUH FDOOHG 6WUXFWXUDOLVW 'HSHQGHQF\ 7KHRULVWV DQG WKH\ ZHUH
OLQNHG WR WKH 8QLWHG 1DWLRQ·V &RPLVLyQ (FRQyPLFD SDUD $PpULFD /DWLQD \ HO
&DULEH &(3$/ GXULQJ WKH ODWHU &ROG :DU &: \HDUV 7KH\ VXSSRUWHG SUR
JUDPV RI LPSRUWVXEVWLWXWLRQ LQ RUGHU WR EXLOG XS D KRPH LQGXVWU\ LQ
WKH YDULRXV WKLUG ZRUOG FRXQWULHV 7KH\ KRSHG WKDW E\ SURGXFLQJ VRPH
RI WKHLU RZQ PDFKLQHU\ WKHVH FRXQWULHV ZRXOG EH DEOH WR GLYHUVLI\ WKHLU

 ,PSRUWVXEVWLWXWLRQ VFKHPHV GHQRWH JRYHUQPHQW SROLFLHV ZKLFK SXW KHDY\ WD[HV RQ

WKH LPSRUW RI FHUWDLQ NH\ LQGXVWULDO SURGXFWV LQ RUGHU WR SURYLGH IRU WKH HVWDEOLVKPHQW RI
VXFK DQ LQGXVWU\ DW KRPH
'HYHORSPHQW WKHRULHV 

SURGXFWLRQ DQG RYHU WLPH EH DEOH WR GR DZD\ ZLWK WKH H[SORLWDWLYH OLQNV
WR PRUH FHQWUDO ILUVW ZRUOG FRXQWULHV WKDW H[LVWHG WKURXJK WKH LPSRUW RI
PDFKLQHU\

5DGLFDO 'HSHQGHQF\ 7KHRU\

3ROLWLFDO UDGLFDOV DSSURSULDWHG 'HSHQGHQF\ 7KHRU\ D IHZ \HDUV ODWHU 7KHLU

JHRJUDSKLF EDFNJURXQG ZDV TXLWH GLYHUVH DQG VR ZHUH WKHLU DXGLHQFHV ,Q
ZHVWHUQ FRXQWULHV 7KH SROLWLFDO HFRQRP\ RI JURZWK E\ %DUDQ  ZDV RQH RI
WKH PRVW SRSXODU HDUO\ WH[WV ZULWWHQ LQ WKLV FDWHJRU\ WKDW LQVSLUHG VHYHUDO
RI WKH ODWHU ZULWHUV )ROORZHUV RI ZKDW ZLWK WLPH EHFDPH NQRZQ DV 5DGLFDO
'HSHQGHQF\ 7KHRU\ H[WHQG WKH LGHD RI H[SORLWDWLRQ WKURXJK WHUPV RI WUDGH
ZLWKLQ D FRXQWU\ 7KH\ KROG WKDW LQVLGH WKLUG ZRUOG FRXQWULHV WKH ORFDO
HOLWHV VLWXDWHG LQ XUEDQ FHQWHUV H[SORLW SHRSOH IXUWKHU DZD\ IURP WKRVH
FHQWHUV DQG WKH\ RIWHQ KDYH FORVHU SHUVRQDO WLHV WR DQG VKDUH LQWHUHVW ZLWK
WKH LQWHUHVWV RI WKH ZHVWHUQ HOLWHV FRPSDUHG ZLWK WKH UXUDO DQG SRRUHU
SRSXODWLRQ RI WKHLU RZQ FRXQWU\ -RKQVRQ  *XQGHU )UDQN  
$OWKRXJK WKH LGHD RI H[WUDFWLRQ RI VXUSOXV IURP WKH WKLUG ZRUOG LV
HVVHQWLDOO\ WKH VDPH DV LW LV IRU RWKHU 'HSHQGHQF\ 7KHRULVWV LW LV H[SUHVVHG
LQ 0DU[LVW WHUPLQRORJ\ DQG DQDO\]HG DFFRUGLQJO\ %DUDQ  FKDSWHU 
DUJXHV WKDW WKH RQO\ UHDVRQ -DSDQ LV QRW DV XQGHUGHYHORSHG DV WKH RWKHU
FRXQWULHV RI $VLD LV WKDW WKH FRXQWU\ ZDV QHYHU VXEMXJDWHG E\ WKH ZHVW DQG
WXUQHG LQWR D FRORQ\ WKH ZD\ MXVW DERXW DOO RWKHU FRXQWULHV RI WKH WKLUG
ZRUOG KDG EHHQ DW VRPH VWDJH 7KH DWWHQWLRQ WR WKH LPSRUWDQFH RI WKLUG
ZRUOG H[SORLWDWLRQ RULJLQDWHV IRU WKHVH UDGLFDOV IURP 0DU[·V GLVFXVVLRQ
RI ZKDW WKH SURFHVV RI ¶SULPLWLYH DFFXPXODWLRQ· RI FDSLWDO ZDV WKDW PDGH
LW SRVVLEOH IRU VRPH (XURSHDQV WR DOUHDG\ KDYH EXLOW XS FDSLWDO DW WKH
WLPH ZKHQ LQGXVWULDO FDSLWDOLVP ZDV MXVW VWDUWLQJ 0DU[  FKDSWHU
DUJXHV D JUHDW SDUW RI WKDW FDPH IURP WKH IRUFHIXO H[SORLWDWLRQ RI WKH WKLUG
ZRUOG ² WKURXJK ZDUV VODYHU\ IRUFHIXO ODQG JUDEELQJ HWF DOO DFWLRQV WKDW
WRGD\·V FDSLWDOLVW ZRXOG VHH DV KLJKO\ LOOHJDO DQG XQHWKLFDO DW OHDVW LQ WKH
ILUVW ZRUOG /X[HPEXUJ  DUJXHV WKLV H[SORLWDWLRQ E\ IRUFH RI WKH WKLUG
ZRUOG VWLOO FRQWLQXHV WR SURYLGH DQ LQIOX[ RI PRQH\ WR ZHVWHUQ FDSLWDOLVW
FRXQWULHV HYHQ QRZ WKDW FDSLWDOLVP KDV VWDUWHG DQG FDSLWDOLVP LV GHSHQGHQW
RQ WKLV 0RUH UHFHQW 5DGLFDO 'HSHQGHQF\ 7KHRULVWV DGG WR WKLV WKDW ZKHQ
RQH SURGXFHV HLWKHU IRU D PDVV PDUNHW LQ D IRUHLJQ FRXQWU\ LQ H[SRUW
HQFODYHV RU OX[XU\ SURGXFWV WKURXJK LPSRUWVXEVWLWXWLRQ IRU WKH XOWUD ULFK
LQ RQH·V RZQ FRXQWU\ WKH VL]H RI WKH DYDLODEOH PDUNHW LV GLVFRQQHFWHG IURP
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

ZDJH OHYHOV DQG VR JUHDW SURILWV FDQ EH PDGH E\ ORZHULQJ ZDJHV %LGHUPDQ
 ² 

$PRQJ VHYHUDO RWKHU UHDVRQV WKDW LV ZK\ PDQ\ 5DGLFDO 'HSHQGHQF\

7KHRULVWV GR QRW EHOLHYH LQ LPSRUWVXEVWLWXWLRQ DQG DFFRUGLQJ WR .D\ 
² WDNH WKH IDFW WKDW /DWLQ $PHULFD JHQHUDOO\ EHFRPHV PRUH GHSHQ
GHQW DQG KDV QDWLRQDO HOLWHV WKDW UHDFW ZLWK DFWV RI UHSUHVVLRQ RQ SRSXODU
PRYHPHQWV DV LQGLFDWRUV WKDW WKH QDWLRQDO FDSLWDOLVW FODVVHV GR QRW SOD\
DQ\ SURJUHVVLYH UROH $FFRUGLQJ WR WKLV ORJLF D QDWLRQDO FDSLWDOLVP WKDW
EULQJV WKH VDPH EHQHILW WR WKH SRSXODWLRQ DV KDV EHHQ WKH FDVH LQ WKH
ILUVW ZRUOG LV QRW SRVVLEOH DQG WKH UHPDLQLQJ RSWLRQV DUH HLWKHU D IDVFLVP
EDVHG GLFWDWRULDO V\VWHP RU VRPH W\SH RI VRFLDOLVP 6RPH 5DGLFDO 'HSHQ
GHQF\ 7KHRULVWV IURP /DWLQ $PHULFD OLNH 7KHRWRQLR 'RV 6DQWRV DQG 9DQLD
%DPELUUD H[SORUHG WKH LGHD RI DQ LQGHSHQGHQW FDSLWDOLVW GHYHORSPHQW LQ
GHSHQGHQW FRXQWULHV ,I RQO\ RQH EXLOGV XS PDFKLQHU\ DQG KHDY\ LQGXVWU\
E\ QDWLRQDOO\ RZQHG FDSLWDO WKH\ VWDWHG DFFXPXODWLRQ SURFHVVHV FRXOG
ZRUN ZLWKRXW H[SORLWDWLRQ IURP RWKHU FRXQWULHV 'RV 6DQWRV  DQG
9DQLD %DPELUUD   FLWHG LQ .D\  ²  )LYH \HDUV ODWHU %DP
ELUUD   VHHPHG WR GLIIHU ZLWK KHU HDUOLHU VWDWHPHQW DV VKH GHFODUHG
WKDW WKH &XEDQ UHYROXWLRQ KDG VKRZQ VRFLDOLVP ZDV WKH RQO\ ZD\ IRUZDUG
IRU /DWLQ $PHULFD EHFDXVH WKH QDWLRQDO ERXUJHRLVLH GLG QR ORQJHU VHH DQ\
SHUVSHFWLYH LQ QDWLRQDOLVWFDSLWDOLVW DXWRQRPRXV GHYHORSPHQW

7KH FULWLFLVP RI PDLQVWUHDP GHYHORSPHQW WKHRULHV FRQWLQXHG WR GH

YHORS DPRQJ 5DGLFDO 'HSHQGHQF\ 7KHRULVWV DQG PRUH UHFHQW ZRUNV VHHP
WR JLYH OHVV VSHFLILF DGYLFH WR WKLUG ZRUOG FRXQWULHV $PLQ  DWWDFNHG
PRGHUQL]DWLRQ WKHRULVWV PDLQO\ RQ WKH EDVLV RI WKHLU EHOLHI WKDW FXUUHQW
GHYHORSPHQWV LQ WKH WKLUG ZRUOG PLUURU WKRVH RI WKH FHQWHU UHJLRQV VRPH
GHFDGHV RU FHQWXULHV HDUOLHU $W WKLV WLPH KH FODLPHG GHYHORSPHQWV LQ
WKH WKLUG ZRUOG DUH IXQGDPHQWDOO\ GLIIHUHQW LQ WKDW ZKHQ GHYHORSPHQW LQ
WKH WKLUG ZRUOG LV FDSLWDOLVW LW PRVWO\ DLGV WKH LQWHUQDWLRQDO FDSLWDO EDVHG
LQ WKH FRXQWULHV FHQWUDO WR FDSLWDOLVP 7KLV W\SH RI D PRUH JHQHUDO YLHZ
GRHV QRW LQ WKH VDPH ZD\ DV SUHYLRXV ZULWLQJV JLYH D FOHDU DQVZHU DV ZKDW
DFWLRQV SHRSOH LQ D WKLUG ZRUOG FRXQWU\ FDQ WDNH WR HYDGH GHSHQGHQF\
7KLV FKDQJH ZDV SUREDEO\ FDXVHG E\ WKH IDLOXUH RI WKH 6RYLHW 8QLRQ DQG
IDLOHG DWWHPSWV DW UHYROXWLRQV E\ WKLUG ZRUOG FRXQWULHV LQ WKH VHFRQG KDOI
RI WKH WK FHQWXU\
1LFDUDJXDQ HFRQRPLF KLVWRU\ 

1LFDUDJXDQ HFRQRPLF KLVWRU\

+HUH ZH ORRN DW WKH HFRQRPLF KLVWRU\ RI 1LFDUDJXD DQG WKH XQGHUO\LQJ

GHYHORSPHQW WKHRULHV WKDW VHHP WR KDYH IRUPHG WKH HFRQRPLF SROLFLHV RI
WKH GLIIHUHQW 1LFDUDJXDQ JRYHUQPHQWV
2QFH VHWWOHG DIWHU WKH 6SDQLVK FRQTXHVW WKH 1LFDUDJXDQ HFRQRP\ ZDV
IRU D ORQJ WLPH EDVHG DURXQG DQ DJULFXOWXUDO VHFWRU GRPLQDWHG E\ D IHZ
ODUJH ODWLIXQGLR SURSHUWLHV RI RYHU  KHFWDUHV ZKLFK SURGXFHG IRU H[
SRUW DQG PDQ\ VPDOO PLQLIXQGLR SURSHUWLHV RI XQGHU  KHFWDUHV ZKLFK
SURYLGHG IRU VXEVLVWHQFH IDUPLQJ 7KLV VWUXFWXUH H[LVWHG LQ PXFK RI /DWLQ
$PHULFD VLQFH WKH WLPH RI WKH 6SDQLVK FRQTXHVW DQG FRQWLQXHV LQ PDQ\
SODFHV 'XULQJ WKLV SKDVH 1LFDUDJXD SURYLGHG DPSOH RSSRUWXQLWLHV IRU
WKH LQYHVWPHQW RI LQWHUQDWLRQDO FDSLWDO LQ WKH ODWLIXQGLRV 0RVW QDWLYH
LQGLJHQRXV SHRSOH ZHUH NLOOHG RU VROG LQWR VODYHU\ ,W PHDQW WKHUH ZDV
DQ DOPRVW FRQVWDQW ODFN RI ODERUHUV IRU WKH ODWLIXQGLRV 7KLV SUREOHP ZDV
VROYHG E\ SUHYHQWLQJ DJULFXOWXUDO ODERUHUV IURP OHDYLQJ WKH SURSHUW\ WKH\
ZRUNHG RQ DV PXFK DV SRVVLEOH DQG E\ UDLVLQJ FDWWOH UDWKHU WKDQ JURZLQJ
FURSV 5DLVLQJ FDWWOH UHTXLUHG OLWWOH KXPDQ LQWHUYHQWLRQ LQ FRPSDULVRQ
ZLWK JURZLQJ PRVW FURSV ,Q WKH WK FHQWXU\ FDWWOH UHSUHVHQWHG WKH PDLQ
EDVLV RI WKH 1LFDUDJXDQ HFRQRP\ ,Q DGGLWLRQ WR FDWWOH WZR FDVK FURSV
ZHUH JURZQ FDFDR ZDV SURGXFHG IRU WKH 0H[LFDQ PDUNHW DQG LQGLJR ZDV
H[SRUWHG WR (XURSH 7KH FRPELQDWLRQ RI WKH WKUHH SURGXFWV ZRUNHG ZHOO
WRJHWKHU IRU D ZKLOH :LWK WLPH FRPSHWLWLRQ IURP RWKHU FRXQWULHV JUHZ
WKH ODERU VKRUWDJH H[WHQGHG DQG %ULWLVK SLUDWHV PDGH WUDQVSRUW LQFUHDV
LQJO\ XQVDIH 7KXV WKH SURGXFWLRQ RI ERWK FDFDR DQG LQGLJR HYHQWXDOO\
ORVW SURILWDELOLW\ %LGHUPDQ  ² 7LMHULQR  ² 5RPiQ 
²  7KLV SHULRG ODVWHG XQWLO WKH VHFRQG KDOI RI WKH WK FHQWXU\
2EYLRXVO\ WKH DPRXQW RI FKRLFH WKDW OD\ LQ IROORZLQJ WKLV PRGHO RI
GHYHORSPHQW IRU WKH 1LFDUDJXDQ VWDWH PXVW KDYH EHHQ YHU\ OLPLWHG HYHQ
LI WKH\ KDG ZDQWHG WR IROORZ D GLIIHUHQW GHYHORSPHQW PRGHO LW LV TXHVWLRQ
DEOH ZKHWKHU WKH\ ZRXOG KDYH EHHQ DEOH WR FRQWURO 1LFDUDJXDQ IDUPHUV
DQG SUHYHQWHG IRUHLJQ LQWHUYHQWLRQ WR SURWHFW IRUHLJQ FDSLWDO ,W PD\ EH
ZURQJ WR VD\ 1LFDUDJXD IROORZHG DQ\ SDUWLFXODU GHYHORSPHQW WKHRU\ LQ WKLV
SHULRG ,I RQH ZHUH WR VSHFLI\ D WKHRU\ LW ZRXOG EH WKDW RI FODVVLFDO OLEHUDOV
VXFK DV 5LFDUGR   VHHLQJ D YDOXH ILUVW DQG IRUHPRVW LQ LQWHUQDWLRQDO
WUDGH DQG WKH VSHFLDOL]DWLRQ RQ RQO\ RQH RU D IHZ SURGXFWV DQG IROORZLQJ
D GRFWULQH RI OLWWOH RU QR VWDWH LQWHUYHQWLRQ DV QHROLEHUDOV SUHDFKHG PXFK
ODWHU
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

7KH IROORZLQJ SHULRG WKH ODVW WKLUG RI WKH WK FHQWXU\ ZDV D VKRUW
OLYHG SKDVH RI QDWLRQDOLVWERXUJHRLVLH GHYHORSPHQW 5RPiQ  ² 
&RIIHHSURGXFWLRQ ZDV LQWURGXFHG DQG SURGXFWLRQ WHFKQLTXHV PRGHUQL]HG
UDSLGO\ GXH WR IDYRUDEOH SROLFLHV WRZDUGV LQFUHDVLQJ QDWLRQDO SURGXFWLRQ
OHYHOV XQGHU  \HDUV RI &RQVHUYDWLYH JRYHUQPHQW (YHQ PRUH VXFK SROL
FLHV ZHUH LQVWLWXWHG XQGHU WKH IROORZLQJ QDWLRQDOLVW JRYHUQPHQW RI /LEHUDO
3UHVLGHQWGLFWDWRU -RVp 6DQWRV =HOD\D /ySH] ²  =HOD\D /ySH]
KDG FRPH WR SRZHU E\ ZD\ RI D PLOLWDU\ FRXS \HW WKH SROLFLHV EHIRUH DQG
DIWHU WKH FRXS VHHP WR KDYH JRQH VRPHZKDW LQ WKH VDPH GLUHFWLRQ &RIIHH
SURGXFWLRQ GRXEOHG LQ WKH ILUVW IHZ \HDUV DIWHU  %LGHUPDQ  ²
7LMHULQR  ²  7KH FKDQJHV WKDW WKLV SKDVH EURXJKW FRQVLVWHG RI
DPRQJ RWKHU DVSHFWV WKH IRUFHG EUHDNLQJ XS RI LQGLJHQRXV FRPPXQDOO\
RZQHG ODQG DQG UHSODFLQJ LW ZLWK SULYDWH LQGLYLGXDO ODQG RZQHUVKLS LQ
WKH IRUP RI ODUJH SODQWDWLRQV /DZV ZHUH SDVVHG WR UHTXLUH DOO LQGHEWHG
SHUVRQV WR HLWKHU ILQG ZRUN RU JR WR MDLO 0DKRQH\   %LGHUPDQ
   7KH ILUVW SURIHVVLRQDO 1LFDUDJXDQ DUP\ ZKLFK =HOD\D /ySH] SXW
LQWR SODFH ZDV XVHG WR KXQW IXJLWLYH ZRUNHUV DQG VHQG WKHP EDFN WR WKH
HVWDWHV ZKHUH WKH\ KDG ZRUNHG 0DKRQH\    $QRWKHU PHDVXUH
XQGHU =HOD\D /ySH] ZDV WKH LQFRUSRUDWLRQ RI WKH $WODQWLF FRDVW LQWR WKH
VWDWH RI 1LFDUDJXD ZLWK KHOS IURP WKH 8QLWHG 6WDWHV SURYLGLQJ XQIDYRU
DEOH HFRQRPLF WHUPV WR WKLV DUHD ZKLFK KRXVHG WKH FHQWHU RI 86 WUDGH
3RZHOO  ²  7KH QHZ JRYHUQPHQW·V SROLFLHV HIIHFWLYHO\ VWDUWHG
WKH ILUVW GHYHORSPHQWV WRZDUG D FDSLWDOLVW SURGXFWLRQ PRGHO ZKHUH ERWK
ODQG DQG ODERU EHFDPH FRPPRGLWLHV DQG WKH ILUVW SULYDWH EDQN ZDV HVWDE
OLVKHG 7KHVH ZHUH OLPLWHG LQ VFRSH DQG ZHDOWK ZDV ODUJHO\ EXLOW XVLQJ
PDVVLYH H[SORLWDWLRQ RI WKH ZRUNIRUFH DQG ODQGV DV KDG EHHQ GRQH SUHYL
RXVO\ %LGHUPDQ  ² 7LMHULQR  ² 5RPiQ  ² 
=HOD\D /ySH] DOVR WULHG WR GLYHUVLI\ WUDGH SDWWHUQV E\ HVWDEOLVKLQJ WUDGH
FRQQHFWLRQV WR (XURSHDQ PDUNHWV 2UWHJD 6DDYHGUD    7RGD\ =H
OD\D /ySH]·V XSULVLQJ LQ  DQG WKH ZULWLQJ RI D QHZ FRQVWLWXWLRQ 
DUH RIILFLDOO\ FHOHEUDWHG E\ WKH /LEHUDOV RQ -XO\ WK EXW DV PHQWLRQHG ,
KDYH RQO\ KHDUG 6DQGLQLVWDV VSHDN SRVLWLYHO\ DERXW KLP 7KH\ UHFRJQL]H
KH ZDV D /LEHUDO EXW XQGHUVWDQG WKH HFRQRPLF SROLFLHV RI WKDW WLPH SHULRG
DUH PRUH LQ OLQH ZLWK WKH FXUUHQW 6DQGLQLVWD SROLFLHV WKDQ WKH SROLFLHV RI
WKH /LEHUDOV EHIRUH  LQ WKDW WKH\ IDYRUHG QDWLRQDO RYHU IRUHLJQ FDSLWDO
$OWKRXJK =HOD\D /ySH] ZRXOG QRW KDYH NQRZQ LW KLV SROLFLHV ZHUH
VRPHZKDW LQ OLQH ZLWK WKH SRVW::,, GHYHORSPHQW PRGHOV 3DUW RI KLV
SROLFLHV FDQ EH VHHQ DV EHLQJ LQ OLQH ZLWK PRGHUQL]DWLRQ WKHRU\ LQ WKDW
1LFDUDJXDQ HFRQRPLF KLVWRU\ 

PXFK RI WKH SRSXODWLRQ ZDV IRUFHG LQWR FDSLWDOLVW SURGXFWLRQ DQG RWKHU
SDUWV FRXOG KDYH EHHQ WKH SURJUDP RI 6WUXFWXUDOLVW 'HSHQGHQF\ 7KHRULVWV
LQ WKDW KH EXLOW XS LQVWLWXWLRQV QHFHVVDU\ IRU LQGXVWULDO JURZWK DW KRPH
VXFK DV D QDWLRQDO EDQN ,W LV LQWHUHVWLQJ WR QRWH WKDW DOWKRXJK 6DQGLQ
LVWDV LGHQWLI\ ZLWK =HOD\D /ySH] WRGD\ KH GLG QRW SXW PXFK HPSKDVLV RQ
HOLPLQDWLQJ VRFLDO GLIIHUHQFHV ZLWKLQ 1LFDUDJXD +H ZDV GHILQLWHO\ QRW D
IROORZHU RI 5DGLFDO 'HSHQGHQF\ 7KHRU\

(FRQRPLF SROLFLHV EHWZHHQ =HOD\D /ySH] DQG WKH 6RPR]DV

7KH HQG RI =HOD\D /ySH]·V JRYHUQPHQW ZDV WKH HQG WR WKH SKDVH RI QDWLR
QDOLVWERXUJHRLVLH GHYHORSPHQW ZKLFK JDYH ZD\ WR D \HW DQRWKHU SKDVH RI
GHYHORSPHQW OHG E\ LQWHUQDWLRQDO FDSLWDO 0DQ\ 1LFDUDJXDQV WRGD\ EHOLHYH
ZKDW KDOWHG WKH RYHUDOO GHYHORSPHQW RI 1LFDUDJXDQ SURGXFWLRQ ZDV WKDW
=HOD\D /RSH]·V QDWLRQDOLVW SROLFLHV GLG QRW FRQWLQXH DIWHU KH ZDV UHPRYHG
IURP SRZHU %LGHUPDQ    7KH 8QLWHG 6WDWHV RYHUWKUHZ WKH =HOD\D
/ySH] UHJLPH LQ  WKURXJK D FRXS DQG JDYH FRQWURO RYHU DJULFXO
WXUH EDFN WR D ODQGHG FRIIHH ROLJDUFK\ 7KLV ROLJDUFK\ KDG QR LQWHUHVWV LQ
PRGHUQL]LQJ WKH LQGXVWU\ WKH\ FRQWUROOHG DV WKH\ PDGH JRRG SURILWV ZLWK
RXW QHHGLQJ WR UHLQYHVW PXFK $FFRUGLQJ WR 6DQGLQLVWD KLVWRULDQ 5RPiQ
   LW ZDV PRVWO\ WKH IHDU WKDW =HOD\D /ySH] FRXOG FRRSHUDWH ZLWK
QRQ86 FRPSDQLHV LQ WUDGH DQG SRVVLEO\ LQ WKH EXLOGLQJ RI DQRWKHU FDQDO
WR FRPSHWH ZLWK WKH RQH WKH 8QLWHG 6WDWHV ZDV EXLOGLQJ LQ 3DQDPD ZKLFK
OHG WKH 86 DGPLQLVWUDWLRQ WR WKLV VWHS
)RU WKH QH[W WKUHH GHFDGHV SULYDWH EDQNHUV IURP WKH 8QLWHG 6WDWHV
WRRN FRQWURO RYHU MXVW DERXW WKH HQWLUH 1LFDUDJXDQ HFRQRP\ &RPELQHG
ZLWK HYHU UHFXUULQJ 86 PLOLWDU\ LQWHUYHQWLRQV WR KLQGHU SRSXODU VWUXJJOHV
WKLV PHDQW HFRQRPLF GHYHORSPHQW ZDV QRW IHDVLEOH %LGHUPDQ   
7KH SURGXFWLRQ SUDFWLFHV VXFK DV WKH SODQWLQJ RI ORZ\LHOGLQJ W\SHV RI
FRIIHH DQG YHU\ OLPLWHG XVH RI SUXQLQJ DQG SHVW FRQWURO ZHUH QRW UHQHZHG
EHWZHHQ ² DQG ZLWK D ODFN RI IRFXV RQ VRLO SUHVHUYDWLRQ WKHVH IDF
WRUV OHG WR D GHFOLQH LQ WRWDO \LHOGV RI  SHU \HDU EHWZHHQ ² $V
ODWH DV ² WKH \LHOGWUHH RU \LHOGKHFWDUH ZDV KDOI WKDW RI &RVWD 5LFD
DQG (O 6DOYDGRU %LGHUPDQ  ²  ,Q ² PHFKDQL]HG IDUPLQJ
ZDV DOPRVW QRQH[LVWHQW DQG ZKHQ LW ZDV HPSOR\HG LW ZDV ZLWKRXW PXFK
DFFHVV WR VSDUH SDUWV RU H[SHUWLVH RQ KRZ WKH PDFKLQHU\ ZDV WR EH XVHG
:LQWHUV   5RPiQ   )XUWKHUPRUH WKH FDWWOH LQGXVWU\ GLG
QRW PRGHUQL]H LQ WKRVH \HDUV DQG D GDLU\ LQGXVWU\ GLG QRW FRPH LQWR H[
,Q WKH SHULRG EHWZHHQ  DQG WKH V 1LFDUDJXDQ SURGXFWLRQ SUDF
WLFHV ZHUH RQO\ PRGHUDWHO\ PRGHUQL]HG %LGHUPDQ   $OWKRXJK SROLFLHV
FKDQJHG VRPHZKDW LQ WKH ODWHU 6RPR]D \HDUV WKH XVDJH RI WKH PDFKHWH
UDWKHU WKDQ PDFKLQHU\ DV D XQLYHUVDO WRRO LV VWLOO ZLGHVSUHDG DPRQJ VPDOO
DJULFXOWXUDO SURGXFHUV 3KRWR 81 3KRWR E\ <XWDND 1DJDWD


1LFDUDJXDQ HFRQRPLF KLVWRU\ 

LVWHQFH EHIRUH  DQG  ZLWK WKH LQVWDOODWLRQ RI WKH ILUVW DQG VHFRQG
SDVWHXUL]LQJ SODQWV DQG VXEVHTXHQW PRGHUQL]DWLRQ RI WKHP 3DWWHQ  
,W LV QRW GLIILFXOW WR VHH WKDW GXULQJ WKLV SHULRG LW ZDV RQFH DJDLQ FODV
VLFDO OLEHUDO WKHRU\ ZKLFK JRYHUQHG 1LFDUDJXDQ HFRQRPLF SROLF\ 'LIIHU
HQW IURP WKH SUHYLRXV SKDVH DW WKLV VWDJH LW KDG EHHQ SURYHQ WKDW WKH
LQVWLWXWLRQ RI D GLIIHUHQW W\SH RI GHYHORSPHQW SROLF\ ZRXOG EH SRVVLEOH LQ
1LFDUDJXD ² JLYHQ WKH DEVHQFH RI LQWHUYHQWLRQ E\ WKH 8QLWHG 6WDWHV

(FRQRPLF SROLFLHV XQGHU WKH 6RPR]DV

7KH 6RPR]D SHULRG LV JHQHUDOO\ WUHDWHG DV RQH VLQJOH SHULRG RI JRYHUQ
PHQW GXULQJ ZKLFK D FRPELQDWLRQ RI WKH 6RPR]DV DQG WKH LQWHUHVWV RI
WKH 8QLWHG 6WDWHV JRYHUQHG 1LFDUDJXD ,Q UHDOLW\ LW LQFOXGHG SHULRGV ZLWK
GLIIHUHQW HFRQRPLF SROLFLHV $W WLPHV WKH 6RPR]DV IROORZHG LGHDV RI QRQ
LQWHUYHQWLRQLVW JRYHUQPHQW LQ PXFK WKH VDPH ZD\ WKHVH LGHDV ODWHU ZHUH
LQFRUSRUDWHG LQWR QHROLEHUDO WKHRU\ $W RWKHU WLPHV WKH JRYHUQPHQW·V
SROLFLHV OHDQHG PRUH WRZDUG LGHDV DERXW PRGHUQL]DWLRQ WKHRU\ ZLWK VRPH
VWDWH LQWHUYHQWLRQ WR PRGHUQL]H DJULFXOWXUH DQG 6WUXFWXUDOLVW 'HSHQGHQF\
7KHRU\ ZLWK LPSRUWVXEVWLWXWLRQ VFKHPHV
7KH 6RPR]D JRYHUQPHQWV WRRN WKH ILUVW VWHSV WR PRYH EDFN WR D SKDVH
RI QDWLRQDOLVWERXUJHRLVLH GHYHORSPHQW ZLWK FRQWURO RI LQWHUQDWLRQDO FDSL
WDO LQ WKH ODWH V DQG HDUO\ V $OWKRXJK YHU\ OLPLWHG DQG ZLWKRXW
DQ\ JUHDW FRQVHTXHQFH WR WKH RYHUDOO GHPRJUDSKLFV DW ILUVW WKH UHJLPH
XVHG WKH SRZHU RI WKH VWDWH WR HQFRXUDJH WKH GHYHORSPHQW RI QHZ FURSV
FRWWRQ DQG VHVDPH DQG VWDUWHG WKH LPSRUW RI WUDFWRUV :RUOG :DU ,, DO
ORZHG IRU WKH GHYHORSPHQW RI VRPH OLPLWHG PLQLQJ OXPEHULQJ DQG UXEEHU
FXOWLYDWLRQ RSHUDWHG E\ IRUHLJQ FRPSDQLHV RQ WKH $WODQWLF FRDVW %LGHUPDQ
   7KH PDLQ HFRQRPLF SROLFLHV RI WKH 6RPR]D UHJLPH UHPDLQHG WKH
VDPH XQWLO WKH V SHUPLWWLQJ UHDVRQDEO\ IUHH DFFHVV WR IRUHLJQ FDSLWDO
DQG GRLQJ QRWKLQJ WR FORVH WKH LQFRPH JDS EHWZHHQ ULFK DQG SRRU ,Q
WKH PLG WR ODWH V SROLFLHV ZHUH HPSOR\HG WR PRGHUQL]H DJULFXOWXUH
GRPLQDWHG WR VRPH H[WHQW ZKHUH WKHVH ZHUH VHHQ DV DEOH LQ PRGHUQL]LQJ
SURGXFWLRQ DQG HOHYDWLQJ WKH *'3 ZKLFK JUHZ VLJQLILFDQWO\ WKURXJKRXW
WKH V DQG V ZLWK F\FOLFDO GRZQWXUQV LQ ² DQG  +HVWRQ
6XPPHUV DQG $WHQ   %HWZHHQ  DQG  WKH WRWDO QXPEHU RI
WUDFWRUV XVHG LQ 1LFDUDJXD JUHZ IURP  WR  %LGHUPDQ  ² 
$W WKH VDPH WLPH WKH FRXQWU\ EHFDPH LQFUHDVLQJO\ GHSHQGHQW RQ IRUHLJQ
FRPSDQLHV DV PDQ\ RWKHU /DWLQ $PHULFDQ FRXQWULHV GLG 0XUR 5RGUtJXH]
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

HW DO    7R FRXQWHU WKLV WUHQG LPSRUWVXEVWLWXWLRQ VFKHPHV IRU

WKH PDQXIDFWXUH RI FKHPLFDO VSUD\V IRU DJULFXOWXUH WKH SURGXFWLRQ RI
IRRWZHDU DQG WH[WLOHV DQG IRRG SURFHVVLQJ ZHUH VXFFHVVIXOO\ VHW XS LQ WKH
HDUO\ V ,UYLQ   
7KH JURVV YDOXH RI PDQXIDFWXUHG H[SRUWV LQFUHDVHG IURP  86'
PLOOLRQ  86' PLOOLRQ LQ  WR  86' PLOOLRQ  86'
PLOOLRQ LQ  :% /$ DQG &DULE 2IILFH    ([SRUWV DQG LPSRUWV
JUHZ UDSLGO\ DW D VLPLODU SDFH GXULQJ WKH V DQG V %DQFR &HQWUDO GH
1LFDUDJXD D  $W WKH HQG RI WKH V LQGXVWULDO SURGXFWLRQ DFFRXQWHG
IRU  RI 1LFDUDJXD·V *'3 VOLJKWO\ PRUH WKDQ DJULFXOWXUH 3UHV RI ,'$
   +RZHYHU D ODUJH SDUW RI WKH YDOXH RI WKH PDLQ LQGXVWULDO H[SRUW
FKHPLFDO SURGXFWV ZHQW WR SD\ IRU WKH LQJUHGLHQWV WKDW KDG WR EH LPSRUWHG
WR PDQXIDFWXUH WKHP :% /$ DQG &DULE 2IILFH    )RRG SURGXFWLRQ
UHPDLQHG WKHUHIRUH WKH PRVW LPSRUWDQW VRXUFH RI H[SRUW HDUQLQJV
%\ WKH WLPH RI WKH RYHUWKURZ RI WKH 6RPR]D GLFWDWRUVKLS LQ 
WKH FRXQWU\ KDG OHVV IRUHLJQ RZQHUVKLS RI LWV DJULFXOWXUDO VHFWRU WKDQ
DQ\ RWKHU &HQWUDO $PHULFDQ FRXQWU\ ² KHOSHG E\ WKH DGYDQWDJHRXV SRVL
WLRQ KHOG E\ LWV DJULFXOWXUDO DQG LQGXVWULDO SURGXFWV LQ WKH UHJLRQDO PDU
NHW 0HUFDGR &RP~Q &HQWURDPHULFDQR 0&&$ FUHDWHG LQ  ,UYLQ 
  7KURXJKRXW /DWLQ $PHULFD WKH GHYHORSPHQW RI LPSRUWVXEVWLWXWLRQ
VFKHPHV VSUHDG DQG ZLWK LW WKH EXLOGXS RI VWURQJHU QDWLRQDO FDSLWDOLVW
LQWHUHVWV 3ROOLQ DQG &RFNEXUQ   

5DGLFDO FULWLFLVP RI 6RPR]D·V HFRQRPLF SROLFLHV

,Q WKH ILUVW IHZ \HDUV IROORZLQJ ::,, WKH 6RYLHWDOOLHG 3DUWLGR 6RFLDOLVWD
1LFDUDJHQVH 361 VWDWHG WKDW SUHFDSLWDOLVW FRXQWULHV VXFK DV 1LFDUDJXD
QHHGHG WR GHYHORS LQGXVWULDO FDSLWDOLVP EHIRUH D VWUXJJOH IRU VRFLDOLVP
FRXOG EHJLQ )RU &DUORV )RQVHFD $PDGRU DQG RWKHU UDGLFDO VWXGHQWV ZKR
LQLWLDOO\ DVVRFLDWHG ZLWK WKH 361 WKH HFRQRPLF DGYDQFHV XQGHU WKH 6R
PR]D UHJLPH LQ WKH V DQG V ZHUH QRW HQRXJK DQG WKH\ VWURQJO\
GLVDJUHHG ZLWK WKH XQHTXDO GLVWULEXWLRQ WR ZKLFK WKHVH DGYDQFHV LQ GH
YHORSPHQW ZRXOG OHDG )RQVHFD $PDGRU  ² VDZ WKH SROLWLFV RI
&HQWUDO $PHULFDQ LQWHJUDWLRQ GXULQJ WKH WLPH RI WKH 0&&$ DV D SURMHFW
IRU 86 $PHULFDQ FRPSDQLHV WR EHWWHU GUDLQ WKH DUHD RI LWV ULFKHV DQG QRW
DV D KHOS LQ WHUPV RI HQKDQFLQJ QDWLRQDO HFRQRPLF GHYHORSPHQW PXFK LQ

 86' DUH 86' DGMXVWHG IRU LQIODWLRQ WR  OHYHOV XVLQJ WKH 86 8UEDQ &RQVXPHU 3ULFH
,QGH[ 86&3,8 
7KH  86' PLOOLRQ  86' PLOOLRQ )DEULWH[ FRWWRQ PLOO ZDV VHW
XS LQ 0DQDJXD VKRUWO\ EHIRUH WKH  HDUWKTXDNH E\ RUJDQL]DWLRQV IURP
&RORPELD 1LFDUDJXD DQG WKH 0HUFDGR &RP~Q &HQWURDPHULFDQR 0&&$  $W IXOO
FDSDFLW\ LW FRXOG KDQGOH  WRQV RI 1LFDUDJXDQ FRWWRQ D \HDU 81  
7KH ODWHU 6RPR]D \HDUV VDZ VFKHPHV RI LPSRUWVXEVWLWXWLRQ DQG LQGXVWUL
DOL]DWLRQ DQG &HQWUDO $PHULFDQ HFRQRPLF FRRSHUDWLRQ WKURXJK WKH 0&&$
DIWHU WKH RUJDQL]DWLRQ ZDV HVWDEOLVKHG LQ  ,UYLQ   86' DUH 86'
DGMXVWHG IRU LQIODWLRQ WR  OHYHOV XVLQJ WKH 86 8UEDQ &RQVXPHU 3ULFH ,QGH[
86&3,8  3KRWR 81 3KRWR E\ <XWDND 1DJDWD

OLQH ZLWK KRZ 'HSHQGHQF\ 7KHRULVW %DUDQ  ² VHHV WKH VHWXS
RI VRPH LQIUDVWUXFWXUH SURMHFWV LQ WKH WKLUG ZRUOG %LJ FRPSDQLHV ZHUH
JLYHQ ULJKWV WR PLQH DQG FXW OXPEHU IRU YHU\ ORZ IHHV )RQVHFD $PDGRU
 ² 
$OWKRXJK *'3 JUHZ GHYHORSPHQW UHPDLQHG IXQGDPHQWDOO\ XQHTXDO
,Q ²  RI DOO DJULFXOWXUDO ODQG ZDV LQ WKH KDQGV RI RQO\  RI
WKH SRSXODWLRQ :LQWHUV   DQG  RI WKH WRWDO DUHD RI SULYDWHO\
RZQHG IDUPV LQ  ZHUH KHOG E\ YHU\ IHZ SULYDWH SURSULHWRUV )RQVHFD
$PDGRU    7KH PRGHUQL]DWLRQ LQ SURGXFWLRQ WKDW WKH VWDWH SUR
PRWHG VWDUWLQJ LQ WKH ODWH V PHDQW WKDW ELJ SURGXFHUV³WKRVH SURGXF
LQJ IRU H[SRUW³UHFHLYHG SUHIHUHQWLDO WUHDWPHQW RYHU WKRVH SURGXFLQJ IRU
ORFDO FRQVXPSWLRQ %LGHUPDQ  ² :DOO  'LMNVWUD   
7KH IRFXV RQ H[SRUW FURSV OHG WR IRRG EHLQJ JURZQ LQ WKH ZRUVW SRVVLEOH
DUHDV DQG LQ RUGHU WR IHHG WKH SRSXODWLRQ DGGLWLRQDO LPSRUWV RI IRRG KDG
WR EH PDGH )RQVHFD $PDGRU    %\  FRWWRQ SURGXFWLRQ WRRN
XS  RI DOO FXOWLYDWHG ODQG 0XUR 5RGUtJXH] HW DO    7KH QXPEHU
RI VWXGHQWV H[LWLQJ VFKRRO SUHPDWXUHO\ DQG WKH QXPEHU RI GHDWKV DQG VHY


,Q  DQ HDUWKTXDNH GHVWUR\HG PRVW RI 0DQDJXD DQG ZLWK LW PXFK RI
WKH FRXQWU\·V PRUH DGYDQFHG SURGXFWLRQ IDFLOLWLHV 0RVW KRXVHV WKDW KDG
QRW EHHQ FRPSOHWHO\ GHVWUR\HG E\ WKH HDUWKTXDNH ZHUH VXEVHTXHQWO\ WDNHQ
GRZQ 7R WKLV GD\ WKH LQQHU FLW\ KDV QRW EHHQ UHEXLOW DQG GRLQJ VR ZRXOG
QRW EH ZLVH DV WKH ORFDWLRQ LV SURQH WR HDUWKTXDNHV 3KRWRV 0DUFHO 7RUXxR

HUDOO\ LQMXUHG GXH WR SURGXFWLRQ UHODWHG LQFLGHQWV UHDFKHG UHFRUG OHYHOV

HYHQ LQ D &HQWUDO $PHULFDQ FRPSDULVRQ )RQVHFD $PDGRU    2QH
RI WKH FRQVHTXHQFHV RI WKH VWDWH·V SROLFLHV ZDV PRUH UDSLG PLJUDWLRQ WR
WKH SRSXODWLRQ FHQWHUV PRVW RI DOO WR 0DQDJXD ,Q 0DQDJXD YDULRXV FDSL
WDOLVWV ZLWK FORVH FRQQHFWLRQV WR WKH 6RPRFLVWD UHJLPH EXLOW IDFWRULHV WR
WDNH DGYDQWDJH RI ODERUHUV IORRGLQJ LQ :DOO   
)RQVHFD $PDGRU DQG RWKHU OHDGLQJ 6DQGLQLVWDV SURSRVHG WR HTXDOL]H
WKH GHYHORSPHQW RI WKH FRXQWU\ ZLWK D IRFXV RQ HTXDOL]LQJ HFRQRPLF
GHYHORSPHQW LQ WKH FLW\ RI 0DQDJXD ZLWK WKH UHVW RI WKH FRXQWU\ :DOO
   :KLOH PRGHUQL]DWLRQ OHG WR WKH FUHDWLRQ DQG VWUHQJWKHQLQJ RI WKH
ERXUJHRLVLH DQG D SURIHVVLRQDO PLGGOH FODVV LQ WKH FLWLHV HVSHFLDOO\ RQ WKH
3DFLILF FRDVW LW DOVR PHDQW SHDVDQWV ZHUH WUDQVIRUPHG LQWR XUEDQ ZDJH
ODERUHUV ² RIWHQ XQHPSOR\HG DQG GHVWLWXWH FLW\ GZHOOHUV ,UYLQ   

&RQIOLFW RI LQWHUHVW EHWZHHQ ERXUJHRLVLH 1LFDUDJXDQV DQG 6RPR]D

7KH 6RPR]D GLFWDWRUVKLS PDQDJHG WR NHHS XS KLJK RYHUDOO JURZWK UDWHV

WKURXJKRXW WKH V EXW WKH VDWXUDWLRQ RI WKH &HQWUDO $PHULFDQ PDUNHW
IRU 1LFDUDJXDQ SURGXFWV WKH 0DQDJXD HDUWKTXDNH   WKH ZRUOG RLO FUL
VLV   FRPELQHG ZLWK F\FOLFDO HFRQRPLF GRZQWXUQV OHG WR D GRZQWXUQ
DW WKH EHJLQQLQJ WR PLGGOH RI WKH V 7KLV GRZQWXUQ SURYHG WR EH D
KXJH REVWDFOH IRU WKH 6RPR]D UHJLPH 1HZ LQYHVWPHQWV ZHUH LQFUHDVLQJO\
PDGH E\ JRYHUQPHQW ERUURZLQJ ILUVW WKURXJK GHYHORSPHQW DVVLVWDQFH
WKHQ E\ ERUURZLQJ LQ WKH FRPPHUFLDO PDUNHW %\ WKH PLGV GHEW


1LFDUDJXDQ HFRQRPLF KLVWRU\ 

SD\PHQWV PDGH XS RQH WKLUG RI DOO H[SRUW HDUQLQJV DQG WKH JRYHUQPHQW
DFFRXQWHG IRU  RI DOO LQYHVWPHQWV 7KH UDWLR RI WD[HV WR *'3 IHOO LQ WKH
\HDUV IROORZLQJ WKH HDUWKTXDNH IURP  LQ ² WR  LQ ²
GHVSLWH LQFUHDVHG LQFRPH DQG VDOHV WD[HV :% /$ DQG &DULE 2IILFH 
LL DQG DOWKRXJK 1LFDUDJXD KDG WKH VHFRQG ORZHVW WD[HV WR *'3 UDWLR LQ
&HQWUDO $PHULFD QH[W DIWHU *XDWHPDOD :% /$ DQG &DULE 2IILFH   
,Q  WKH :% SURSRVHG WR VWDELOL]H WKH HFRQRP\ E\ GHFUHDVLQJ SODQQHG
SXEOLF LQYHVWPHQWV ² RQO\ FDUU\LQJ WKURXJK SURMHFWV ZLWK D KLJK
VRFLRHFRQRPLF SULRULW\ DV ZHOO DV RWKHU DXVWHULW\ PHDVXUHV LQFUHDVLQJ
WD[HV DQG DXJPHQWLQJ H[SRUWV WR SD\ GRZQ H[WHUQDO GHEWV :% /$ DQG
&DULE 2IILFH  
&RQWURO RI WKH HFRQRP\ DOVR VKLIWHG PDUNHGO\ GXULQJ WKH ODVW \HDUV RI
WKH 6RPR]D UHJLPH $W WKH EHJLQQLQJ RI WKH V WKH 3HOODV IDPLO\ IURP
*UDQDGD DQG WKH 0RQWHDOHJUHV IURP /HyQ WRJHWKHU ZHUH UHVSRQVLEOH IRU
 RI *'3 'LMNVWUD    $V ODWH DV  WKH 6RPR]DV ZHUH VWLOO RQO\
WKH WKLUG ULFKHVW IDPLO\ %URZQ    7KURXJK RZQHUVKLS RI YDULRXV
HQWHUSULVHV DQG WKHLU UXOH RI WKH FRXQWU\ WKH 6RPR]DV WULHG WR DSSURSULDWH
DQ LQFUHDVLQJ SDUW RI WKH WRWDO QDWLRQDO LQFRPH %\ WKH HQG RI WKH V
WKH 6RPR]DV ZHUH WKH ULFKHVW IDPLO\ DQG WKH\ ZHUH UHVSRQVLEOH IRU 
RI *'3 'LMNVWUD   
7KH SROLFLHV WKDW DLPHG WR HQULFK WKH 6RPR]DV LQ UHODWLRQ WR RWKHU
1LFDUDJXDQ FDSLWDO RZQHUV OHG WR DQ LQFUHDVH LQ GLVVDWLVIDFWLRQ ZLWK WKH
UHJLPH DPRQJ WKH ERXUJHRLVLH ,UYLQ  ² %URZQ    DQG
PXFK DWWHQWLRQ DW WKH WLPH IRFXVHG RQ WKH SDUW RI WKH EXVLQHVV FRPPXQLW\
WKDW GLVDJUHHG ZLWK 6RPR]D DQG WKH SDUW WKH\ SOD\HG LQ WKH RUJDQL]LQJ
HIIRUWV DJDLQVW WKH 6RPR]D UHJLPH 5HODWLYHO\ OLWWOH DWWHQWLRQ LV JLYHQ WR
WKDW QRZ HLWKHU E\ /LEHUDOV RU 6DQGLQLVWDV 7KH 6RPR]DV ZHUH JHQHUDOO\
GHVFULEHG DV KDYLQJ EHHQ LQ FRQWURO RI MXVW DERXW HYHU\WKLQJ DQG WKH\ DUH
VHHQ DV WKH ULFKHVW IDPLO\ RI WKDW WLPH $ UHDVRQ IRU WKLV PD\ EH WKDW WKH
RWKHU WZR IDPLOLHV KDYH VXUYLYHG DQG WKH 0RQWHDOHJUHV ILQDQFH D JUHDW
SDUW RI WKH /LEHUDO RSSRVLWLRQ

(FRQRPLF UHDOLWLHV DQG SROLFLHV XQGHU WKH 6DQGLQLVWDV RI WKH

V
7KH LQVXUUHFWLRQLVW ZDU VHH DOVR ³ 8QGHU WKH 6DQGLQLVWD LQ WKH V S 
OHIW WKH FRXQWU\ LQGHEWHG E\  86' ELOOLRQ  86' ELOOLRQ  PRVW
RI ZKLFK 6RPR]D KDG VSHQW RQ DUPV SXUFKDVHG IURP WKH 8QLWHG 6WDWHV
0DVD\D LQ  2Q WKH OHIW D VWUHHW WXUQHG LQWR ZDU]RQH DQG RQ WKH ULJKW
RQH RI WKH ILUVW FHOHEUDWLRQV RI WKH UHYROXWLRQDU\ YLFWRU\ 7KH HQG RI WKH
GLFWDWRUVKLS EURXJKW ZLWK LW ERWK FDXVH IRU MR\ DQG WKH EHJLQQLQJ RI PDQ\
\HDUV RI HFRQRPLF KDUGVKLS GXH WR WKH ZDU 3KRWRV 3HGUR 0H\HU

GXULQJ WKH  PRQWK LQVXUUHFWLRQ ,Q RUGHU WR EH HOLJLEOH IRU DQ\ IRUHLJQ

ORDQV WKH JRYHUQLQJ SRVWLQVXUUHFWLRQ MXQWD DFFHSWHG WKH GHEW RI WKH 6R
PR]D UHJLPH DOWKRXJK RQO\  86' PLOOLRQ  86' PLOOLRQ ZDV
OHIW LQ 1LFDUDJXD·V UHVHUYHV %HUULRV    ,W LV HVWLPDWHG WKDW 
1LFDUDJXDQV ZHUH GHDG DQG  ZRXQGHG ,UYLQ    7KH GDP
DJH WR EXLOGLQJ VWUXFWXUHV ZDV YDOXHG DW DURXQG  86' PLOOLRQ 
86' PLOOLRQ  &DSLWDO IOLJKW GXULQJ DQG GLUHFWO\ DIWHU WKH LQVXUUHFWLRQ
WRWDOHG DURXQG  86' PLOOLRQ  86' ELOOLRQ 3UHV RI ,'$   
,Q DGGLWLRQ WR WKH HFRQRPLF GLIILFXOWLHV WKH FRXQWU\ KDG LQKHULWHG IURP
WKH ODVW 6RPR]D \HDUV WKHVH ZDUUHODWHG LVVXHV KDG DQ HQRUPRXV LPSDFW
RQ WKH 6DQGLQLVWDV· DFKLHYDEOH VKRUW WHUP SURGXFWLRQ OHYHOV DQG WKH W\SH
RI WUDGH WKH FRXQWU\ FRXOG UHDOLVWLFDOO\ VHW XS

,GHRORJLFDO LQIOXHQFHV RQ HFRQRPLF SROLFLHV

$IWHU WKH VXFFHVVIXO 6DQGLQLVWD LQVXUUHFWLRQ RI  WKH LQIOXHQFH RI 'H

SHQGHQF\ 7KHRU\ RQ WKH ZD\ WKH 6DQGLQLVWDV WULHG WR VHW XS WKH FRXQWU\·V
HFRQRP\ ZDV VWURQJ 9HODVFR    -DLPH :KHHORFN 5RPiQ LV NQRZQ
IRU KLV ZRUN ,PSHULDOLVPR \ GLFWDGXUD FULVLV GH XQD IRUPDFLyQ VRFLDO ZKLFK
DQDO\]HV 1LFDUDJXDQ KLVWRU\ LQ D 0DU[LVW 'HSHQGHQF\ 7KHRU\ SHUVSHFWLYH
DQG IRU EHLQJ DPRQJ WKH QLQH PHPEHUV RI WKH QDWLRQDO GLUHFWRU\ RI WKH
)6/1 UHSUHVHQWLQJ WKH 7HQGHQFLD 3UROHWDULD 73 GXULQJ WKH V +H DOVR
EHFDPH WKH 0LQLVWHU IRU $JULFXOWXUH DQG $JUDULDQ 5HIRUP DIWHU WKH LQVXU
UHFWLRQ +LV ERRN DFKLHYHG FXOW VWDWXV DPRQJ PRVW 6DQGLQLVWDV HVSHFLDOO\
WKRVH QRW KDYLQJ D EDFNJURXQG IURP WKH 7HQGHQFLD 7HUFHULVWD 77  DQG VHY
HUDO UHHGLWHG HGLWLRQV RI ,PSHULDOLVPR \ GLFWDGXUD FULVLV GH XQD IRUPDFLyQ VRFLDO
DQG VHYHUDO RWKHU ERRNV UHSUHVHQWLQJ PXFK WKH VDPH HFRQRPLF WKLQNLQJ


1LFDUDJXDQ HFRQRPLF KLVWRU\ 

ZHUH SXEOLVKHG GXULQJ KLV WLPH LQ JRYHUQPHQW

7KH JRYHUQLQJ MXQWD QDWLRQDOL]HG WKH EDQNLQJ VHFWRU WKH 6RPR]D SURS
HUW\ DQG SXW IRUHLJQ WUDGH XQGHU QDWLRQDO FRQWURO 7KLV SXW  RI LQGXVWU\
 RI DJULFXOWXUDO SURGXFWLRQ DQG PRUH WKDQ  RI WKH VHUYLFH VHFWRU
XQGHU QDWLRQDO FRQWURO 7KLV PDGH RXW DQ LPSRUWDQW SDUW RI WKH QDWLRQDO
SURGXFWLRQ ,Q WKH HDUO\ V DJULFXOWXUH UHSUHVHQWHG DURXQG  RI *'3
HPSOR\HG  RI WKH ODERU IRUFH DQG JHQHUDWHG  RI H[SRUW HDUQLQJV
3UHV RI ,'$  ²  ,Q WKH ILUVW \HDU DIWHU WKH LQVXUUHFWLRQ WKH SXEOLF
VHFWRU VKDUH RI *'3 URVH IURP  WR  3UHV RI ,'$    (DFK \HDUV
LQ WKH SHULRG ² WKLV ILJXUH ZDV KLJKHU WKDQ  +HVWRQ 6XPPHUV
DQG $WHQ   ZKLOH D PXFK VPDOOHU SDUW RI WKH WRWDO SURGXFWLYH VHFWRU
ZDV LQ SXEOLF KDQGV 7KLV PDGH VWDWH SODQQLQJ GLIILFXOW 7KH H[SRUW RUL
HQWHG LQGXVWU\ ZKLFK VWLOO RSHUDWHG ZDV HQWLUHO\ LQ SULYDWH KDQGV ,UYLQ
   ,Q WKH  DQG  HFRQRPLF SODQV WKH SULRULWL]DWLRQ PDGH WKH
VKLIW LQ HFRQRPLF SROLF\ IURP WKH 6RPR]D \HDUV REYLRXV 7KH SODQV WULHG WR
UHVWRUH WKH VDPH OHYHOV RI JURZWK DQG FDSLWDO DFFXPXODWLRQ H[LVWLQJ LQ WKH
6RPR]D \HDUV EXW ZLWK FRQVXPSWLRQ JHDUHG WRZDUG WKH SRRU UDWKHU WKDQ
WKH OX[XU\ VHFWRU 7KH LGHD ZDV WKDW ZKLOH LQ WKH VKRUW WHUP 1LFDUDJXD
ZRXOG EH DOPRVW HQWLUHO\ GHSHQGHQW RQ IRUHLJQ DLG LQ WKH ORQJWHUP LW
ZRXOG EH DEOH WR ORZHU GHSHQGHQF\ RQ DLG ZKLOH GLYHUVLI\LQJ LWV VRXUFHV
UDWKHU WKDQ UHO\LQJ RQ DLG RQO\ IURP WKH 8QLWHG 6WDWHV ,UYLQ  ² 

 7KH GHVFULSWLRQ RI WKH HDUO\ \HDUV RI WKH )6/1 LQ WKH V DQG V E\ %RUJH
0DUWtQH]  VXJJHVWV WKH WKHRUHWLFDO VWXGLHV RI PRVW FHQWUDO 6DQGLQLVWDV KDG QRW
JRQH EH\RQG 0DU[ KLV IULHQG DQG FRZULWHU )ULHGULFK (QJHOV /HQLQ DQG $XJXVWR 1LFROiV
&DOGHUyQ 6DQGLQR ,W VHHPLQJO\ GLG QRW LQFOXGH PXFK IURP WKH ZULWHUV RI 'HSHQGHQF\
7KHRU\ HYHQ WKRXJK WKHLU LGHDV ZHUH DVVRFLDWHG ZLWK 6DQGLQLVPR 7KH NQRZOHGJH KRUL]RQ
PXVW KDYH YDULHG TXLWH D ELW DPRQJ OHDGLQJ 6DQGLQLVWDV :LWK KLV FHQWUDO SRVLWLRQ LQ WKH
JRYHUQPHQW 5RPiQ GLG PDNH FHQWUDO HFRQRPLF SROLF\ GHFLVLRQV DQG HFRQRPLF WKHRU\ ,Q
WKDW VHQVH WKH 6DQGLQLVWD SHULRG UHSUHVHQWHG D SHULRG RI GHYHORSPHQW ZLWK WKH VWDWHG
JRDOV RI DFKLHYLQJ PRUH QDWLRQDO LQGHSHQGHQFH DQG DFKLHYLQJ PRUH HTXDOLW\
 :LWK WKH 6DQGLQLVWDV LQ SRZHU VRFLDO VFLHQWLVWV RI DOO W\SHV IORFNHG WR 1LFDUDJXD DQG
WKH HFRQRP\ ZDV DQDO\]HG PXFK PRUH WKDQ EHIRUH %HUULRV   ,UYLQ   &XHQFD
 VWXGLHG WKH HFRQRPLF UHDOLW\ 1LFDUDJXD IDFHG GXULQJ WKH ILUVW IHZ \HDUV RI WKH
6DQGLQLVWD UXOH ZLWK QR VXSSRUW IURP WKH 8QLWHG 6WDWHV OLPLWHG VXSSRUW IURP :HVWHUQ
(XURSH DQG VRPHZKDW PRUH VXSSRUW IURP 6RYLHW DOOLHG FRXQWULHV 0DQ\ ILJXUHV WKDW
GHPRQVWUDWH HFRQRPLF GHYHORSPHQW DUH RQO\ DYDLODEOH IRU WKH \HDUV DIWHU  GXH WR
WKLV LQFUHDVHG LQWHUHVW ,W DOVR PHDQV WKDW LW LV QRW SRVVLEOH WR FRPSDUH DOO DVSHFWV RI WKH
1LFDUDJXDQ HFRQRP\ LQ WKH V ZLWK WKH \HDUV EHIRUH WKH UHYROXWLRQ GXH WR ODFN RI GDWD
 *RYHUQPHQW &RQVXPSWLRQ 6KDUH RI *'3 3HU &DSLWD 333

50

40

30


20

10

0
1950 1960 1970 1980 1990 2000
1LFDUDJXD
6ZHGHQ
+RQGXUDV
&XED
0H[LFR
8QLWHG 6WDWHV
*RYHUQPHQW VSHQGLQJ KDV ORQJ EHHQ D KLJKHU SHUFHQWLOH RI *'3 LQ 1LFDUD
JXD DQG +RQGXUDV WKDQ LQ WKH 8QLWHG 6WDWHV DQG 0H[LFR DQG DW WLPHV HYHQ
6ZHGHQ 7KH V EURXJKW WKH JRYHUQPHQW SRUWLRQ RI *'3 XS WR PRUH
WKDQ  ² DOPRVW WZLFH WKDW RI &XED ,Q WKH VXEVHTXHQW \HDUV RI /LEHUDO
JRYHUQPHQWV LW GHFOLQHG WR DURXQG  ² VWLOO PRUH WKDQ WZLFH ZKDW LW KDG
EHHQ LQ WKH V ,Q WKH SHULRG ² LW LQFUHDVHG LQVLJQLILFDQWO\ E\ 
SHU \HDU 7KH ILJXUHV DUH VRPHZKDW VNHZHG 8QWLO  WKH EXVLQHVVHV RI
WKH 6RPR]D IDPLO\ ZHUH SDUW RI WKH SULYDWH VHFWRU HYHQ WKRXJK WKH 6RPR]DV
DQG WKH 1LFDUDJXDQ VWDWH ZRUNHG PXFK OLNH D VLQJOH XQLW DQG VLQFH  WKH
DFWLYLW\ RI WKH 6DQGLQLVWD RZQHG FRPSDQ\ $/%$ GH 1LFDUDJXD 6$ $OEDQLVD
KDV EHHQ FRXQWHG DV SDUW RI WKH SULYDWH VHFWRU HYHQ WKRXJK LW RSHUDWHV OLNH
DQ H[WHQVLRQ RI WKH VWDWH 5HFHQW ILJXUHV IRU +RQGXUDV ORRN VLPLODU WR 1LFD
UDJXDQ RQHV DOWKRXJK +RQGXUDV GLG QRW JR WKURXJK D VLPLODU UHYROXWLRQDU\
SURFHVV 6RXUFH +HVWRQ 6XPPHUV DQG $WHQ 


1LFDUDJXDQ HFRQRPLF KLVWRU\ 

/DQG UHIRUP WUDGH DQG ROLJDUFKV

7KH PDLQ 6DQGLQLVWD UHIRUP LQ WKH V ZLWKLQ WKH VHFWRU RI SURGXFWLRQ
ZDV LQ WKH DUHD RI ODQG UHGLVWULEXWLRQ 7KH ODQGV RI WKH 6RPR]DV ZHUH
QDWLRQDOL]HG DQG GLYLGHG RXW WKURXJK DJUDULDQ UHIRUPV 7KH WLWOHV ZHUH
QRW DOZD\V ZULWWHQ RXW RQ SDSHU DQG RIWHQWLPHV ZHUH MXVW LQIRUPDOO\
NQRZQ E\ 6DQGLQLVWD DXWKRULWLHV DW WKH WLPH ,W ZDV EHOLHYHG WKH ILUVW ODQG
GLVEXUVHPHQWV ZRXOG EH IROORZHG E\ IXUWKHU VWHSV RI ODQG UHIRUP ZKLFK
ZRXOG LQFOXGH PHDVXUHV WR IXUWKHU WKH FROOHFWLYH XVDJH RI ODQGV /DQG
UHIRUP RQ D ODUJH VFDOH GLG QRW VWDUW EHIRUH  )RQVHFD 7HUiQ J 
$OWRJHWKHU DURXQG  IDPLOLHV UHFHLYHG UHGLVWULEXWHG ODQGV HLWKHU
FROOHFWLYHO\ RU DV LQGLYLGXDOV 7LMHULQR  ²  7KH ODQG WLWOHV JLYHQ
RXW JHQHUDOO\ KDG SURYLVLRQV LQ WKHP VXFK DV ODQG JLYHQ WR FRRSHUDWLYHV
FRXOG QRW EH VROG 7KH LGHD EHKLQG WKLV VHWXS ZDV LW IRUELG DQ\ IXWXUH
UHQHZHG DFFXPXODWLRQ RI ODQGV E\ WKH IHZ
6WDWH UXQ EXVLQHVVHV ZHUH DOVR SDUW RI WKH 6DQGLQLVWD HFRQRPLF SODQ
HVSHFLDOO\ LQ WKH HDUO\ V <HW TXLWH GLIIHUHQWO\ IURP RWKHU VRFLDOLVW
H[SHULPHQWV WKH VWDWHG JRDO E\ VWDWH RIILFLDOV ZDV QRW WKDW DOO ODQG ZRXOG
HVVHQWLDOO\ EH VWDWHUXQ EXW UDWKHU WKH JURZWK RI DQ HFRQRP\ GRPLQDWHG
E\ D PL[ RI VPDOO SURGXFHUV DQG WKH HQFRXUDJHPHQW RI WKH IRUPDWLRQ RI
YROXQWDU\EDVHG FRRSHUDWLYHV %RUJH 0DUWtQH]    *RYHUQPHQW
WDNHRYHU RFFXUUHG PRUH DW WKH OHYHO RI IRUHLJQ WUDGH 3DUW RI WDNLQJ WUDGH
LQWR VWDWH KDQGV ZDV GRQH WKURXJK WKH FUHDWLRQ RI WKH 0LQLVWHULR GH &RPHU
FLR ([WHULRU 0,&( LQ $XJXVW  ZKLFK ZDV WR UHJXODWH HYHU\WKLQJ WKDW
HQWHUHG DQG H[LWHG WKH FRXQWU\ %HUULRV   
7KH UHPDLQLQJ WZR VXSHUULFK IDPLOLHV WKH 3HOODV DQG WKH 0RQWHDOH
JUHV ZKR KDG PDGH XS WKH ROLJDUFK\ WRJHWKHU ZLWK WKH 6RPR]DV FRQWLQ
XHG WR IXQFWLRQ DV LPSRUWDQW HFRQRPLF HQWLWLHV 6HYHUDO OHDGLQJ DFWLYLVWV
RI WKH )6/1 KDG GLUHFW IDPLO\ FRQQHFWLRQV WR WKH FRPSDQLHV FRQQHFWHG
WR WKH 3HOODV IDPLO\ WKH *UXSR 3HOODV *3  DQG VRPH KDG EHHQ LQYROYHG LQ
WKH PDQDJHPHQW RI WKH ,QJHQLR 6DQ $QWRQLR ,6$  D VXJDU PLOO FRQWUROOHG
E\ WKH *3 GXULQJ WKH \HDUV RI 6RPR]D 9LODV  ²  7KH KHDG
RI WKH *3 &DUORV 3HOODV &KDPRUUR VWD\HG LQ 1LFDUDJXD XQWLO  DQG
QRW EHIRUH  ZDV WKH ,6$ FRQILVFDWHG E\ WKH JRYHUQPHQW (YHULQJKDP
   7KLV ZDV RQO\ GXH WR IDLOLQJ UHLQYHVWPHQWV LQ WKH SODQWV DQG LW
ZDV DJUHHG WKH VWDWH ZRXOG SD\ WKH *3 DQQXDO FRPSHQVDWLRQ SD\PHQWV
(YHULQJKDP    6HYHUDO 0RQWHDOHJUH SURSHUWLHV FRQQHFWHG WR WKHLU
%DQFR 1LFDUDJHQVH GH ,QGXVWULD \ &RPHUFLR %$1,& ZHUH FRQILVFDWHG E\ WKH
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

VWDWH (YHULQJKDP    EXW (GXDUGR 0RQWHDOHJUH 5LYDV RQH RI WKH

FXUUHQW RSSRVLWLRQ OHDGHUV ZRUNHG DV YLFHSUHVLGHQW RI WKH %DQNLQJ ,QYHVW
PHQW *URXS RI 6KHDUVRQ /HKPDQ +XWWRQ LQ WKH 8QLWHG 6WDWHV GXULQJ WKH V
*:8  

(FRQRPLF LQYROYHPHQW RI WKH 8QLWHG 6WDWHV

-XVW WZR ZHHNV DIWHU WKH UHYROXWLRQDU\ YLFWRU\ DW WKH HQG RI -XO\  D
ILUVW LQTXLU\ ZDV PDGH IRU PLOLWDU\ DLG IURP WKH 86 JRYHUQPHQW ,Q $XJXVW
RI WKDW \HDU WKH 8QLWHG 6WDWHV GHFLGHG WR RQO\ JLYH PRQHWDU\ DLG RI 
86' PLOOLRQ  86' PLOOLRQ ²  86' PLOOLRQ  86' PLOOLRQ
DV D JUDQW DQG  86' PLOOLRQ  86' DV D ORDQ ,Q 6HSWHPEHU
-RVp 'DQLHO 2UWHJD 6DDYHGUD 6HUJLR 5DPtUH] 0HUFDGR DQG 0RLVpV +DVVDQ
0RUDOHV WKH )6/1 PHPEHUV RI WKH JRYHUQLQJ MXQWD ZHQW WR :DVKLQJWRQ
WR DVN IRU PLOLWDU\ KHOS RQFH PRUH 0LOLWDU\ DLG ZDV GHQLHG DJDLQ %HUULRV
  
,Q -DQXDU\  WKH 86 &RQJUHVV 86& OHJLVODWHG WKDW  RI WKH DOUHDG\
GHFLGHG XSRQ KHOS RI  86' PLOOLRQ ZDV WR JR WR WKH SULYDWH VHFWRU
%HUULRV  ²  2QH LQWHUSUHWDWLRQ RI WKLV PRYH PD\ EH WKDW
WKLV PHDVXUH ZRXOG IXQG WKH RSSRVLWLRQ WR WKH 6DQGLQLVWDV LQ WKH SULYDWH
VHFWRU /HRJUDQGH    ,Q 1LFDUDJXD WKH :% FDOOHG IRU WKDW ² WKLV
UHSRUW ZDUQHG WKDW WRR PDQ\ ORDQV KDG EHHQ JLYHQ WR WKH SXEOLF VHFWRU
DQG WKDW WKH SULYDWH VHFWRU ZDV ODFNLQJ EHKLQG GXH WR XQFHUWDLQWLHV LQ KRZ
IDU 6DQGLQLVWD UHIRUPV ZRXOG JR ,W ZDUQHG WKDW LI 1LFDUDJXD ZDQWHG WR
PDLQWDLQ D PL[HG HFRQRP\ DV KDG EHHQ DQQRXQFHG PRUH DWWHQWLRQ KDG WR
EH JLYHQ WR WKH QHHGV RI WKH SULYDWH VHFWRU DQG VSHFLILFDOO\ HQWUHSUHQHXUV
:% /$ DQG &DULE 2IILFH  
,Q )HEUXDU\  HYHQ PRUH FRQGLWLRQV ZHUH ODLG XSRQ WKH DLG E\ WKH
86 +RXVH RI 5HSUHVHQWDWLYHV 86+5 HYHQ IXUWKHU UHVWULFWLQJ DFFHVV WR WKH
OLPLWHG IXQGV $OWRJHWKHU  FRQGLWLRQV LQFOXGLQJ WKDW WKH PRQH\ EH XVHG
WR EX\ SURGXFWV IURP WKH 8QLWHG 6WDWHV DQG WKDW QR HFRQRPLF WLHV ZLWK
&XED ZHUH WR EH HVWDEOLVKHG VRXJKW WR UHVWULFW WKH RSWLRQV DYDLODEOH WR
WKH 1LFDUDJXDQ JRYHUQPHQW %HUULRV    :DVKLQJWRQ H[SUHVVHG
IHDUV WKDW 1LFDUDJXD ZRXOG GHYHORS LQWR ´DQRWKHU &XEDµ E\ VSULQJ 
'HU 6SLHJHO   
%\ WKH HQG RI  WKH ODVW  86' PLOOLRQ  86' PLOOLRQ VWLOO

 7KH  UHSRUW LV WKH ODVW :% HFRQRPLF UHSRUW IURP WKH V FXUUHQWO\ DYDLODEOH
SXEOLFO\ EXW WKHUH LV QR UHDVRQ WR EHOLHYH WKDW WKH YLHZV RI WKH :% FKDQJHG VXEVHTXHQWO\
1LFDUDJXDQ HFRQRPLF KLVWRU\ 

WR EH SDLG RXW ZDV VXVSHQGHG E\ WKH 86 DGPLQLVWUDWLRQ XQGHU 3UHVLGHQW

-DPHV (DUO &DUWHU ZLWK WKH H[FXVH WKDW WKH 6DQGLQLVWDV VXSSRUWHG LQVXU
JHQWV LQ (O 6DOYDGRU ORJLVWLFDOO\ DQG SROLWLFDOO\ 2Q  $SULO  QHZO\
HOHFWHG 3UHVLGHQW 5HDJDQ IRUPDOO\ VXVSHQGHG WKH DLG DOWRJHWKHU %HUULRV
  'HU 6SLHJHO   9HWHUDQV 3HDFH $FWLRQ 7HDP 3UHHOHFWLRQ
2EVHUYDWLRQ 'HOHJDWLRQ WR 1LFDUDJXD  'LMNVWUD    ,Q LWV SODFH
KH SXW D SROLF\ RI WU\LQJ WR RYHUWKURZ WKH 6DQGLQLVWD UXQ JRYHUQPHQW
WKURXJK HFRQRPLF EORFNDGH DQG D ZDU ZKLFK ODVWHG IRU WKH UHVW RI WKH
GHFDGH
$Q DGGLWLRQDO HFRQRPLF SDUW RI WU\LQJ WR RYHUWKURZ WKH 6DQGLQLVWDV
² ZDV WR WU\ WR EORFN DOO FRPPHUFLDO FUHGLW IURP DEURDG $OWKRXJK
OLQHV RI FUHGLW ZHUH RIILFLDOO\ VWLOO RSHQ GXH WR WKH DFFHSWDQFH RI WKH 6RPR]D
GHEW E\ WKH )6/1 WKH 86 JRYHUQPHQW WULHG RSHQO\ WR GLVFRXUDJH DQ\ IXU
WKHU FUHGLWV 2IWHQ WKLV ZDV GRQH E\ GLUHFWO\ WKUHDWHQLQJ SRWHQWLDO OHQGHUV
)URP  1LFDUDJXD ZDV RQ D OLVW RI FRXQWULHV WR ZKLFK 8QLWHG 6WDWHV RIIL
FLDOO\ WULHG WR GHQ\ ORDQV DQG LQ  WKH 8QLWHG 6WDWHV GRZQJUDGHG 1LFDUD
JXD·V FUHGLWZRUWKLQHVV UDWLQJ IURP ¶VXEVWDQGDUG· WR ¶GRXEWIXO· ZKLFK PDGH
LW PRUH GLIILFXOW IRU WKH )6/1 WR REWDLQ FUHGLW 7KLV FRQWLQXHG WKURXJKRXW
WKH 5HDJDQ SUHVLGHQF\ DQG LQVWLWXWLRQV VXFK DV WKH ,QWHU$PHULFDQ 'HYHO
RSPHQW %DQN ,'% ZHUH XVHG DV OHYHUDJH WR SXVK WKURXJK WKH ¶QR ORDQV·
VWUDWHJ\ WKH 8QLWHG 6WDWHV KDG GHFLGHG XSRQ /HRJUDQGH  ² 

,QYROYHPHQW RI :HVWHUQ (XURSH  FRXQWULHV DOOLHG ZLWK WKH 8QLWHG

6WDWHV

,Q  WKH %XQGHVUHSXEOLN 'HXWVFKODQG %5' )HGHUDO 5HSXEOLF RI *HUPDQ\ 

%HOJLXP %UD]LO DQG 6SDLQ WXUQHG GRZQ 6DQGLQLVWD UHTXHVWV IRU DUPV 2QO\
)UDQFH VROG 1LFDUDJXD  86' PLOOLRQ  86' PLOOLRQ ZRUWK RI
PLOLWDU\ HTXLSPHQW LQ  EXW GXH WR SUHVVXUH IURP :DVKLQJWRQ DOO
VXEVHTXHQW VDOHV ZHUH KDOWHG %HUULRV    1HYHUWKHOHVV LQ WKH
\HDUV ² :HVWHUQ (XURSH ZDV DFWXDOO\ D JUHDWHU SURYLGHU RI DLG WKDQ
WKH VWDWH VRFLDOLVW FRXQWULHV FRPELQHG 'XULQJ WKLV SHULRG  RI WKH
HFRQRPLF YDOXH RI WKH WRWDO DPRXQW RI DLG VHQW WR 1LFDUDJXD FDPH IURP
:HVWHUQ (XURSH DQG RQO\  IURP WKH 6RYLHW DOOLHG FRXQWULHV %HUULRV
  
(YHQ WKRXJK WKH 8QLWHG 6WDWHV WULHG WR EORFN DLG RIWHQ WLPHV :HVWHUQ
(XURSH YRWHG ZLWK WKH 6RYLHW 8QLRQ DQG WKH QRQDOLJQHG FRXQWULHV WKH
JURXS WR ZKLFK 1LFDUDJXD FRXQWHG LWVHOI 2UWHJD 6DDYHGUD   ,Q 
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

ZKHQ WKH ,'% ZDV WR YRWH RQ D  86' PLOOLRQ  86' PLOOLRQ ORDQ WR
ILQLVK D UXUDO URDG SURMHFW DOUHDG\  FRPSOHWH  RI  FRXQWULHV YRWHG
IRU WKH ORDQ 7KH 8QLWHG 6WDWHV YHWRHG WKH ORDQ ,Q WKH HQG LW ZDV JLYHQ DV
SDUW RI D ELODWHUDO DLG SURMHFW IURP WKH 1HWKHUODQGV /HRJUDQGH   
:KHQ LQ  WKH 3UHVLGHQW RI WKH 8QLWHG 6WDWHV 5HDJDQ DQQRXQFHG D IXOO
WUDGH HPEDUJR RQ 1LFDUDJXD ZLWKRXW DSSURYDO RI WKH 86& E\ LQYRNLQJ WKH
,QWHUQDWLRQDO (PHUJHQF\ (FRQRPLF 3RZHUV $FW ,((3$  HYHQ VXFK FORVH DOOLHV
DV WKH %5' DQG WKH 8QLWHG .LQJGRP RSHQO\ RSSRVHG WKH PRYH /HRJUDQGH
 ² 

,QYROYHPHQW RI (DVWHUQ (XURSH DQG RWKHU 6RYLHW DOOLHG FRXQWULHV

7KH ELJJHVW JLYHU RI DLG LQ WHUPV RI KHDOWK DQG HGXFDWLRQ GXULQJ WKRVH
\HDUV ZDV &XED DFFRXQWLQJ IRU  RI DOO KHOS ZLWK DSSUR[LPDWHO\ 
FLWL]HQV RQ WKH JURXQG LQ 1LFDUDJXD LQ  7KH 'HXWVFKH 'HPRNUDWLVFKH
5HSXEOLN ''5 *HUPDQ 'HPRFUDWLF 5HSXEOLF KHOSHG ZLWK HGXFDWLRQ EXLOG
LQJ D SRO\WHFKQLF LQVWLWXWH LQ -LQRWHSH  DQG JDYH IRRG LQ WKH IRUP RI ZKHDW
$GGLWLRQDOO\ 1LFDUDJXD UHFHLYHG KHOS GXULQJ H[WUDRUGLQDU\ FULVHV VXFK DV
WKH  IORRG GLVDVWHU DV ZHOO DV  86' PLOOLRQ  86' PLOOLRQ
ZRUWK RI IDUP PDFKLQHV DQG UDZ PDWHULDO LQ  DQG  86' PLOOLRQ
 86' PLOOLRQ LQ FUHGLW LQ  %HUULRV  ² 
6LQFH QR ZHVWHUQ FRXQWULHV ZHUH ZLOOLQJ WR VHOO DUPV WR 1LFDUDJXD
UHTXHVWV ZHUH PDGH WR VRFLDOLVWV FRXQWULHV ZKLFK ZHUH PRUH ZLOOLQJ WR
DFFRPPRGDWH WKHP %HUULRV   'LMNVWUD    ,Q WKH ILUVW
\HDU EHWZHHQ -XO\  DQG -XO\  1LFDUDJXD GRXEOHG WKH QXPEHU RI
FRXQWULHV LW KDG HFRQRPLF DQG SROLWLFDO UHODWLRQV ZLWK PRVW RI ZKLFK KDG
WR GR ZLWK LWV QHZ FRQQHFWLRQV WR WKH 6RYLHW DOOLHG FRXQWULHV
6WDUWLQJ LQ  NHURVHQH ZDV LPSRUWHG IURP WKH 6RYLHW 8QLRQ SUR
GXFLQJ HQHUJ\ ZKLFK DFFRXQWHG IRU DV PXFK DV  RI 1LFDUDJXD·V WRWDO
HQHUJ\ QHHGV LQ  )URP  RQ WKH PDLQ H[SRUW WR WKH 6RYLHW 8QLRQ
ZDV FRIIHH ZKLOH WKH PDLQ LPSRUWV ZHUH PDFKLQHU\ DQG RLO ILQDQFHG E\
D ² WUDGH FUHGLW WR EH SDLG EDFN RYHU D SHULRG RI ² \HDUV 7KH
VHFRQG ELJJHVW WUDGH SDUWQHU DQG LQ  WKH ELJJHVW RYHUDOO WUDGH SDUWQHU
ZDV %XOJDULD %HUULRV   
7KH 6RYLHW 8QLRQ EHFDPH 1LFDUDJXD·V PDLQ VXSSOLHU RI RLO 8QWLO WKHQ
RLO ZDV REWDLQHG IURP 0H[LFR 'LMNVWUD    7KH 6RYLHW 8QLRQ JDYH
DOPRVW QR HFRQRPLF DLG LQ WKH ILUVW \HDUV ² ZKHQ 1LFDUDJXD ZDV

 -LQRWHSH LV D FLW\ LQ WKH GHSDUWDPHQWR &DUD]R

1LFDUDJXDQ HFRQRPLF KLVWRU\ 

FODVVLILHG DV PRUH D IULHQG WKDQ D FORVH UHODWLYH ,Q WKH \HDUV ²

VRPHZKDW PRUH PRQH\ ZDV JLYHQ %HUULRV    7KLV WUDGH ZLWK WKH
6RYLHW 8QLRQ DQG LWV DOOLHV FUHDWHG IULFWLRQ LQVLGH 1LFDUDJXD SULQFLSDOO\
EHFDXVH PRVW SURGXFWLRQ ZDV VWLOO LQ SULYDWH KDQGV DQG WKHVH SULYDWH
LQYHVWRUV GLGQ·W SDUWLFXODUO\ OLNH WKH LGHD RI WUDGLQJ ZLWK WKH 6RYLHW 8QLRQ
%HUULRV    :ULWLQJ LQ WKH PLGV %HUULRV  SUHGLFWHG WKH
FRQWLQXHG H[LVWHQFH RI WKH SULYDWH VHFWRU IRU PDQ\ \HDUV WR FRPH /HIWLVW
WKHRUHWLFLDQV (UQHVW 0DQGHO DQG 2VNDU /DQJH ZDUQHG WKLUG ZRUOG UHJLPHV
ZKR ZHUH WU\LQJ WR LQWURGXFH VRFLDOLVP WKDW QDWLRQDOL]LQJ JUDGXDOO\ ZRXOG
QRW ZRUN DV WKH UHPDLQLQJ SULYDWH VHFWRU LQ IHDU RI EHLQJ H[WHUPLQDWHG
ZRXOG VDERWDJH WKH HFRQRP\ RU IOHH WKH FRXQWU\ +DUULV    DQG
1LFDUDJXD VHHPV WR KDYH EHHQ D JRRG H[DPSOH RI MXVW WKDW
)6/1 OHDGHUV DUJXHG WKH HFRQRP\ ZDV QRW GHYHORSHG HQRXJK WR EH
QDWLRQDOL]HG HQWLUHO\ $V ODWH DV  2UWHJD 6DDYHGUD DUJXHG WKH VSHHG
DW ZKLFK VRFLDOLVP FRXOG DGYDQFH ZDV GLIIHUHQW IRU GLIIHUHQW VRFLHWLHV DQG
WKDW LQ 1LFDUDJXD D VSHHG LQ DFFRUGDQFH ZLWK WKH VSHFLDO FRQGLWLRQV RI
1LFDUDJXDQ VRFLHW\ QHHGHG WR EH SXUVXHG :DOO   

(FRQRPLF UHDOLW\

,Q VSLWH RI DOO HIIRUWV 1LFDUDJXD GLG QRW GR YHU\ ZHOO GXULQJ WKH V LQ
WHUPV RI HFRQRPLF GHYHORSPHQW 7KH ZDU GUDLQHG WKH HFRQRP\ WUHPHQ
GRXVO\ DQG WKH HFRQRPLF SROLFLHV GLG QRW KHOS DOOHYLDWH WKH VLWXDWLRQ )XOO
ODQG UHIRUP ZDV QRW WR EH LQ WKH LPPHGLDWH IXWXUH ,Q GHOLYHULQJ UHDO DQG
PHDVXUDEOH HFRQRPLF JURZWK IRU WKH PDVVHV 1LFDUDJXD KDUGO\ LPSURYHG
DQG WRZDUGV WKH HQG RI WKH GHFDGH WKH VLWXDWLRQ ZRUVHQHG
,Q   86' PLOOLRQ  86' ELOOLRQ LQ GHEW SD\PHQWV ZHUH
GXH  WR JR WR SULYDWH EDQNV %HUULRV    1LFDUDJXDQ IRUHLJQ
GHEW URVH IURP  RI WKH *URVV 1DWLRQDO ,QFRPH *1, WR  LQ WKH
SHULRG ² :% D  ,Q  WKH SULYDWH VHFWRU VWLOO UHSUHVHQWHG
DSSUR[LPDWHO\  RI DOO WUDGH DQG GLG QRW UHLQYHVW VLJQLILFDQW PRQH\ LQ
1LFDUDJXD 'LMNVWUD    ,Q  1LFDUDJXD KDG D FXUUHQW DFFRXQW
VXUSOXV RI  86' PLOOLRQ  86' PLOOLRQ  %\  LW KDG EXLOW
XS D FXUUHQW DFFRXQW GHILFLW RI  86' PLOOLRQ  86' ELOOLRQ 
7KLV FKDQJH ZDV ODUJHO\ GXH WR WKH LQFUHDVLQJ WUDGH GHILFLW DQG ERWK IHOO
VLPXOWDQHRXVO\ XQWLO WKH HQG RI WKH GHFDGH %DQFR &HQWUDO GH 1LFDUDJXD
D  1LFDUDJXD NHSW D WUDGH GHILFLW GXULQJ WKH V  DQG WKH JURZWK LQ

 1LFDUDJXD·V WRWDO WUDGH GHILFLW ZDV  86' PLOOLRQ  86' PLOOLRQ LQ 
$Q LQFLQHUDWHG GHVN DQG W\SHZULWHU GHPRQVWUDWH RQH RI WKH PDLQ WDUJHWV RI
WKH &RQWUD DWWDFNV³WKH IDFLOLWLHV XWLOL]HG WR SURPRWH WKH 6DQGLQLVWDV· VRFLDO
DQG HGXFDWLRQDO SURJUDPV 7KH JRDO VHHPV WR KDYH EHHQ WR HQVXUH WKDW
WKH 6DQGLQLVWDV ZRXOG IDLO LQ WKHLU DWWHPSW WR GHYHORS WKH FRXQWU\ 3KRWR
:LWQHVV IRU 3HDFH

ERWK H[SRUWV DQG LPSRUWV IURP WKH 6RPR]D SHULRG ZDV HIIHFWLYHO\ KDOWHG
%DQFR &HQWUDO GH 1LFDUDJXD D  ,Q WKH EHJLQQLQJ RI WKH V WKH
H[SRUWV WR RWKHU GHYHORSLQJ FRXQWULHV ZHQW XS VOLJKWO\ ZKLOH LPSRUWV
IURP WKHP ZHQW GRZQ ,Q UHODWLRQ WR WKH &0($ D WUDGH VXUSOXV DW WKH
EHJLQQLQJ RI WKH GHFDGH WXUQHG LQWR D GHILFLW E\  DQG LW UHPDLQHG
WKURXJKRXW WKH V ,QIODWLRQ UDWHV DOVR LQFUHDVHG UDSLGO\ DQG ZHQW
EH\RQG  HYHU\ \HDU LQ WKH SHULRG RI ² ,0)   
0XFK RI WKLV DUJXDEO\ GLG QRW KDYH WR GR ZLWK WKH SROLFLHV RI WKH 6DQGL
QLVWD UHJLPH GLUHFWO\ ,QYHVWPHQWV LQWR 1LFDUDJXD ZHUH JHQHUDOO\ XQDWWUDF
WLYH WR RWKHU FRXQWULHV GXH WR WKH LQLWLDO 6RPR]D GHEW VR YHU\ OLWWOH QHZ
FDSLWDO IORZHG LQWR WKH FRXQWU\ $FFRUGLQJ WR WKH &(3$/ 1LFDUDJXD GLG
HQG XS GRLQJ IDLUO\ ZHOO LQ WKH HFRQRPLF VOXPS RI  FRQVLGHULQJ D
FROODSVH LQ H[SRUWV WR LWV QHLJKERUV RI WKH 0&&$ %HUULRV    7KH
HFRQRPLF HPEDUJR E\ WKH 8QLWHG 6WDWHV DQG WKH ZDU DLPHG DW GHVWUR\LQJ
WKH QDWLRQ·V ILQDQFHV PDGH HFRQRPLF SODQQLQJ LQFUHDVLQJO\ GLIILFXOW %H
VLGHV WKH ZDU WKH QHJDWLYH GHYHORSPHQW LQ WHUPV RI WUDGH FRXOG DOVR KDYH
WR GR ZLWK WKH IDFW WKDW PRVW WUDGH VKLIWHG IURP EHLQJ PDLQO\ ZLWK WKH

DQG GHFOLQHG WR  86' PLOOLRQ  86' PLOOLRQ LQ  %DQFR &HQWUDO GH
1LFDUDJXD D  


 1LFDUDJXDQ WUDGH EDODQFH

4,000
PLOOLRQ 86' DW  FRQVWDQW SULFHV

3,000

2,000

1,000

0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
,PSRUWV
([SRUWV
'XULQJ WKH WLPH RI 6RPR]D DQG /LEHUDO JRYHUQPHQWV ERWK LPSRUWV DQG H[
SRUWV LQFUHDVHG 'XULQJ WKH 6DQGLQLVWD \HDUV RI WKH V LPSRUWV GHFOLQHG
EXW H[SRUWV GHFOLQHG HYHQ PRUH OHDYLQJ WKH FRXQWU\ ZLWK D SHUPDQHQW WUDGH
GHILFLW %HIRUH  H[SRUWV DQG LPSRUWV EDODQFHG HDFK RWKHU RXW IRU WKH
PRVW SDUW %XW VLQFH WKH 6DQGLQLVWD LQVXUUHFWLRQ LPSRUWV KDYH DOZD\V EHHQ
JUHDWHU WKDQ H[SRUWV ,QVWHDG RI EHFRPLQJ OHVV GHSHQGHQW RQ IRUHLJQ FRXQ
WULHV WKH ZD\ WKH 6DQGLQLVWDV KDG KRSHG WKHLU SROLFLHV ZRXOG ZRUN HYHU
VLQFH  WKH FRXQWU\ KDV EHHQ PRUH PRUH GHSHQGHQW RQ WKH RXWVLGH ZRUOG
$IWHU  ERWK LPSRUWV DQG H[SRUWV KDYH LQFUHDVHG RQFH PRUH <HW ZKLOH
H[SRUWV RQO\ EDUHO\ KDYH UHDFKHG WKH OHYHO RI WKH V LPSRUWV DUH DOPRVW
WZLFH DV KLJK
9DOXHV KDYH EHHQ DGMXVWHG IRU LQIODWLRQ WR  YDOXH RI 86' XVLQJ WKH 86 8U
EDQ &RQVXPHU 3ULFH ,QGH[ 86&3,8  6RXUFH %DQFR &HQWUDO GH 1LFDUDJXD D 
86'/%/6 


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

8QLWHG 6WDWHV DQG ZHVWHUQ (XURSH WR WKH 6RYLHW 8QLRQ DQG WKH FRXQWULHV
FRQQHFWHG WR WKH &RXQFLO RI 0XWXDO (FRQRPLF $VVLVWDQFH &0($ %HUULRV 
² 'LMNVWUD    ,Q WKH ODWHU \HDUV LW ZDV WKH JLJDQWLF LQIODWLRQ
UDWHV ZKLFK PDGH PRVW HFRQRPLF SODQQLQJ LPSRVVLEOH
'XH WR DOO WKHVH SUREOHPV SODQV WKDW ZHUH PHDQW WR OHDG WR PRUH
HTXDOLW\ DQG WR EXLOG XS QDWLRQDO LQGXVWULHV ZHUH DEDQGRQHG RU VLPSOLILHG
,W ZDV LQLWLDOO\ SODQQHG WR VHW XS D FRWWRQWH[WLOH SODQW LQ QRUWKZHVWHUQ
1LFDUDJXD LQ RUGHU WR H[SRUW FRWWRQ FORWK UDWKHU WKDQ WKH UDZ FRWWRQ
ILEHU 7KLV ZDV PHDQW WR GHFHQWUDOL]H WKH FRWWRQ LQGXVWU\ 7KH SURMHFW
ZDV DEDQGRQHG EXW WZR VLPLODU SODQWV ZHUH LQVWDOOHG LQ 0DQDJXD 6HYHUDO
RWKHU SURMHFWV WKDW ZHUH EXLOW ZHUH PHDQW WR LQFUHDVH QDWLRQDO SURGXFWLRQ
LQ DUHDV VXFK DV PLON SURGXFWLRQ DQG K\GURHOHFWULF SRZHU 7KHVH SURMHFWV
DOO EXLOW LQ WKH VXEVHTXHQW \HDUV ZHUH ILQDQFHG E\ DLG PRQH\ DQG ZHUH
KLJKO\ WHFKQLFDO WR VXFK D GHJUHH WKDW 1LFDUDJXD DQG 1LFDUDJXDQV ZHUH
XQDEOH WR PDLQWDLQ WKHP :DOO  ² 

7UDQVLWLRQ IURP SRZHU

.QRZQ DV WKH 3LxDWD WKH )6/1 XVHG WKH PRQWKV EHWZHHQ )HEUXDU\ ZKHQ
WKH\ ORVW WKH HOHFWLRQ DQG $SULO  ZKHQ SRZHU ZDV KDQGHG RYHU WR
WKH HOHFWLRQ ZLQQHUV WR UHGLVWULEXWH RZQHUVKLS RQ D ODUJH VFDOH  RI
DOO ODQG GLVWULEXWLRQV XQGHU WKH )6/1 ZHUH GRQH LQ WKLV SHULRG 6RPH RI
WKHVH ZHUH FOHDUO\ UHGLVWULEXWLRQV IRU IDUPHUV ZKR WHFKQLFDOO\ KDG EHHQ
XVLQJ WKH ODQG DOUHDG\ DQG EHHQ ZRUNLQJ RQ LW IRU D ORQJ WLPH &ULWLFV FODLP
PXFK RI WKH UHGLVWULEXWLQJ ZDV LQ UHDOLW\ KDQGLQJ RYHU SURSHUW\ WR )6/1
OHDGHUV &XSSOHV  ²  , KDYH QRW EHHQ DEOH WR FKHFN WKH YDOLGLW\
RI WKHVH FODLPV EXW LW LV WUXH WKDW VHYHUDO 6DQGLQLVWDV GLG H[WUDRUGLQDULO\
ZHOO LQ HFRQRPLF WHUPV LQ VXEVHTXHQW \HDUV

/LEHUDO HFRQRPLF SROLWLFV

7KH /LEHUDO UHJLPHV DIWHU  VWDUWHG DQRWKHU SKDVH RI JLYLQJ DFFHVV WR
LQWHUQDWLRQDO FDSLWDO DQG OLPLWLQJ VWDWH LQWHUYHQWLRQ 7KLV ZDV FOHDUO\ LQ
OLQH ZLWK QHROLEHUDO LGHDV DERXW GHYHORSPHQW ,Q 1LFDUDJXD WKH WHUP
¶QHROLEHUDO· LV DOVR ZKDW LV XVHG WR GHVFULEH WKH HFRQRPLF SROLFLHV RI WKHVH
JRYHUQPHQWV 7KH \HDUV EHWZHHQ  DQG  DUH FRPPRQO\ UHIHUUHG WR
DV ¶WKH  \HDUV RI QHROLEHUDOLVP· GXH WR WKH KLJK UDWH RI SULYDWL]DWLRQV RI
PDMRU DUHDV RI HFRQRPLF OLIH VXFK DV WKH SHQVLRQ V\VWHP 7pIHO HW DO  
 8QGHUQRXULVKPHQW

50

40
3HUFHQWDJH

30

20

10

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
2IILFLDO GDWD VKRZ WKDW XQGHUQRXULVKPHQW IHOO FRQVLGHUDEO\ GXULQJ WKH SH
ULRG RI /LEHUDO JRYHUQPHQWV ²  6RXUFH )$2 

DQG WKH SULQFLSOH RI FRQVWDQWO\ ORZHULQJ VRFLDO SURJUDP H[SHQGLWXUHV DV

LQVWUXFWHG E\ WKH ,0) 9DUJDV   
,W ZDV WKH ILUVW QRQ6DQGLQLVWD SUHVLGHQW 9LROHWD %DUULRV 7RUUHV GH
&KDPRUUR ZKR RSHQHG WKH FRXQWU\ IRU WUDGH ZLWK 6RXWK $PHULFD DQG WKH
8QLWHG 6WDWHV 7KH 0RQWHDOHJUHV DQG 3HOODV ZHUH UHWXUQHG ODUJH SDUWV RI
WKHLU UHVSHFWLYH SURSHUWLHV DQG SURPLVHV ZHUH PDGH WR JLYH VRPH SURSHU
WLHV WR GHFRPPLVVLRQHG PHPEHUV RI WKH PLOLWDU\ DQG WKH &RQWUDV (YHULQJ
KDP  ² 
,QWHUQDWLRQDO HFRQRPLF WLHV DOVR FKDQJHG IXQGDPHQWDOO\ 7KH HFR
QRPLF VLWXDWLRQ RQ D JOREDO OHYHO KDG FKDQJHG ZKHQ WKH 6RYLHW DOOLHG FRXQ
WULHV IHOO DZD\ DV WUDGLQJ SDUWQHUV 7KH ,QWHUQDWLRQDO &RXUW RI -XVWLFH ,&-
LQ 'HQ +DDJ GHFLGHG E\  WKDW WKH 8QLWHG 6WDWHV ZDV REOLJHG WR SD\
GDPDJHV IRU WKH ZDU RQ 1LFDUDJXD ² D WRWDO RI  86' ELOOLRQ 
86' ELOOLRQ  7KH JRYHUQPHQW RI  IRUJDYH WKH 8QLWHG 6WDWHV WKLV
GHEW (TXLSR (QYtR   VROG RII PRVW QDWLRQDO LQGXVWU\ DQG GLG DZD\
ZLWK WKH FRXQWU\·V WUDLQ V\VWHP *ULJVE\   ,QVWHDG RI VDQFWLRQV IURP
WKH 8QLWHG 6WDWHV 1LFDUDJXD ZDV LQWHJUDWHG LQWR D IUHH WUDGH ]RQH ZLWK
WKH 8QLWHG 6WDWHV DV SDUW RI WKH 'RPLQLFDQ 5HSXEOLF²&HQWUDO $PHULFDQ )UHH
7UDGH $JUHHPHQW '5&$)7$  ZKLFK ZDV UDWLILHG LQ 


 1LFDUDJXDQ )RUHLJQ 'HEWV VLQFH 

103
 RI *URVV 1DWLRQDO ,QFRPH

102

1970 1975 1980 1985 1990 1995 2000 2005

'XULQJ WKH 6DQGLQLVWD \HDUV RI WKH V GHSHQGHQFH RQ IRUHLJQ PRQH\
OHQGHUV LQFUHDVHG ,W KDG EHHQ KRSHG WKDW VXFK GHSHQGHQFH ZRXOG GHFUHDVH
1LFDUDJXDQ H[WHUQDO GHEW DV D SHUFHQWDJH RI *URVV 1DWLRQDO ,QFRPH JUHZ IURP
 WR  IROORZLQJ WKH  HDUWKTXDNH ²  <HW WKH ELJJHVW
LQFUHDVH KDSSHQHG LQ WKH 6DQGLQLVWD \HDUV RI WKH V ZKHQ LW LQFUHDVHG
IURP  WR  ²  ,Q  WKH H[WHUQDO GHEW ZDV GRZQ DW
 DQG WKDW ZDV WKH ILUVW WLPH LW KLW SUHUHYROXWLRQ OHYHOV ,Q  LW
KDG ULVHQ RQFH DJDLQ WR  7KH LQFUHDVH GXULQJ WKH FXUUHQW 6DQGLQLVWD
JRYHUQPHQW LV PXFK OHVV WKDQ ZKDW ZDV WKH FDVH LQ WKH V 7KHVH ILJXUHV
GR QRW LQFOXGH WKH  86' ELOOLRQ  86' ELOOLRQ LQ ZDUUHSDUDWLRQV
WKH ,QWHUQDWLRQDO &RXUW RI -XVWLFH ,&- LQ 'HQ +DDJ KDG DZDUGHG 1LFDUDJXD
IURP WKH 8QLWHG 6WDWHV LQ  (TXLSR (QYtR  
´7RWDO H[WHUQDO GHEW VWRFNV WR *URVV 1DWLRQDO ,QFRPH > *1, @ 7RWDO H[WHUQDO
GHEW LV GHEW RZHG WR QRQUHVLGHQWV UHSD\DEOH LQ IRUHLJQ FXUUHQF\ JRRGV RU
VHUYLFHV 7RWDO H[WHUQDO GHEW LV WKH VXP RI SXEOLF SXEOLFO\ JXDUDQWHHG DQG
SULYDWH QRQJXDUDQWHHG ORQJWHUP GHEW XVH RI ,QWHUQDWLRQDO 0RQHWDU\ )XQG
,0) FUHGLW DQG VKRUWWHUP GHEW 6KRUWWHUP GHEW LQFOXGHV DOO GHEW KDYLQJ
DQ RULJLQDO PDWXULW\ RI  \HDU RU OHVV DQG LQWHUHVW LQ DUUHDUV RQ ORQJWHUP
GHEW *1, >«@ LV WKH VXP RI YDOXH DGGHG E\ DOO UHVLGHQW SURGXFHUV SOXV DQ\
SURGXFW WD[HV OHVV VXEVLGLHV QRW LQFOXGHG LQ WKH YDOXDWLRQ RI RXWSXW SOXV
QHW UHFHLSWV RI SULPDU\ LQFRPH FRPSHQVDWLRQ RI HPSOR\HHV DQG SURSHUW\
LQFRPH IURP DEURDGµ 6RXUFH :% D


 1LFDUDJXDQ )RUHLJQ 'HEWV LQ UHFHQW \HDUV
·109
3

2.5

2
86' DEVROXWH QXPEHUV

1.5

0.5

1996 1998 2000 2002 2004 2006 2008 2010

2IILFLDO ELODWHUDO ORDQV WRWDO
0XOWLODWHUDO ORDQV WRWDO
0XOWLODWHUDO ORDQV ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0)
&URVVERUGHU ORDQV %DQN IRU ,QWHUQDWLRQDO 6HWWOHPHQWV %,6 EDQNV
)RUHLJQ GHEWV LQFOXGLQJ WKRVH WR WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0) KDYH
JURZQ FRQVWDQWO\ VLQFH WKH PLGV XQGHU WKH /LEHUDOV DQG WKH FXUUHQW
6DQGLQLVWDV ,Q  WKH ,0) IRUJDYH 1LFDUDJXD LWV HQWLUH GHEW %HDFK\  
7KH ,QWHU$PHULFDQ 'HYHORSPHQW %DQN ,'% DJUHHG WR IRUJLYH 1LFDUDJXD·V GHEW
LQ  ,'%   7KH 1LFDUDJXDQ GHEW WR WKH ,0) DQG WR RWKHU PXOWLODWHUDO
RUJDQL]DWLRQV KDV DJDLQ JURZQ XQGHU WKH FXUUHQW 6DQGLQLVWD JRYHUQPHQW
,Q WKDW VHQVH 1LFDUDJXD LV QRW PRYLQJ DZD\ IURP FRQWURO E\ WKH ,0) XQGHU
WKH FXUUHQW JRYHUQPHQW 6RXUFH :% E


$ IDPLO\ SKRWR IURP /RV &HGURV 0DQDJXD WDNHQ LQ  VKRZV WKH FRQWLQXHG
H[LVWHQFH RI H[WUHPH SRYHUW\ DPRQJ PDQ\ 1LFDUDJXDQV 2IILFLDO ILJXUHV
VKRZ DQ LPSURYHPHQW LQ VHYHUDO GHYHORSPHQW LQGLFDWRUV VLQFH  0RVW
1LFDUDJXDQV VHHP WR DWWULEXWH WKH KLJK DPRXQW RI H[WUHPH SRYHUW\ WKDW
H[LVWHG LQ  WR WKH IDLOHG HFRQRPLF SROLFLHV RI WKH /LEHUDO JRYHUQPHQWV
RI ² 3KRWR :LNLPHGLD 3KRWR E\ 5REHUW 3LFDUG

$PRQJ WKH PRVW SURPLQHQW SDUWV RI SULYDWL]HG SXEOLF LQIUDVWUXFWXUH

LV HOHFWULFLW\ ZKLFK ZDV SULYDWL]HG LQ  ZKHQ 8QLyQ )HQRVD 6$ 8) 
D 6SDQLVK XWLOLW\ FRPSDQ\ REWDLQHG D FRQWUDFW WR UXQ WKH 1LFDUDJXDQ
HOHFWULFLW\ V\VWHP ,Q  WKH DSSOLFDEOH ODZV ZHUH FKDQJHG ZLWK WKH
YRWHV RI DOO SDUWLHV LQ D ZD\ WKDW DOORZHG IRU WKH VXEVHTXHQW SULYDWL]DWLRQ
RI WKH HOHFWULFLW\ QHWZRUN 7ZR VPDOOHU FRPSDQLHV 'LVVXU '6 DQG 'LVQRUWH
'1  ZHUH VHW XS WR ELG RQ WKH HOHFWULFLW\ QHW 7KHUH ZHUH QR FRXQWHURIIHUV
8) WKHQ ERXJKW '6 DQG '1 DQG KDV VLQFH EHHQ WKH VROH RSHUDWRU RI WKH
1LFDUDJXDQ HOHFWULFLW\ QHWZRUN 1LFDUDJXDQV KDYH VLQFH DFFXVHG 8) RI
WU\LQJ WR PDNH D SURILW E\ QRW UHLQYHVWLQJ LQWR WKH 1LFDUDJXDQ HOHFWULFLW\
V\VWHP 7KLV ZDV WKH FDXVH³LW LV RIWHQWLPHV FODLPHG³ZKLFK OHG WR WKH
SRZHU RXWDJHV RI ² KRXUV LQ PDMRU FLWLHV E\  7RUWXJD ² *UXSR
DQWLPLOLWDULVWD  

7KHUH DUH VRPH GLVFUHSDQFLHV LQ WKH YLHZV RQ ZKDW FRXQWV DV 1LFDUD

JXDQ H[SRUWV 8S XQWLO  DOO VRXUFHV VHHP WR DJUHH 1LFDUDJXD KDG D
QHJDWLYH WUDGH EDODQFH ZLWK WKH 8QLWHG 6WDWHV 1LFDUDJXDQ VWDWLVWLFV VKRZ
WKH VDPH IRU WKH IROORZLQJ \HDUV EXW DFFRUGLQJ WR ILJXUHV SURYLGHG E\ WKH
8QLWHG 6WDWHV LQ WKH \HDUV DIWHU  1LFDUDJXD H[SRUWHG WR WKH 8QLWHG
6WDWHV PRUH WKDQ LW LPSRUWHG $FFRUGLQJ WR WKHVH ILJXUHV DOO WUDGLQJ EH
WZHHQ 1LFDUDJXD DQG WKH 8QLWHG 6WDWHV WRWDOHG MXVW  86' PLOOLRQ
 86' PLOOLRQ LQ  ZLWK WKH EDODQFH EHLQJ  86' PLOOLRQ
 86' PLOOLRQ LQ IDYRU RI WKH 8QLWHG 6WDWHV ,Q  LW KDG JURZQ
WR  86' ELOOLRQ  86' ELOOLRQ  ZLWK  86' PLOOLRQ 


1LFDUDJXDQ HFRQRPLFV GXULQJ WKH VHFRQG 6DQGLQLVWD JRYHUQPHQW 

86' PLOOLRQ LQ IDYRU RI 1LFDUDJXD 86 &HQVXV %XUHDX  86'/%/6

  1LFDUDJXDQ VRXUFHV VKRZ DQ LQFUHDVH LQ ERWK LPSRUWV VHH DOVR S 
DQG H[SRUWV VHH DOVR S   \HW WKH EDODQFH FRQWLQXHV WR EH LQ IDYRU RI WKH
8QLWHG 6WDWHV UDWKHU WKDQ 1LFDUDJXD 7KH GLIIHUHQFH LQ PHWKRGRORJ\ EH
WZHHQ KRZ 1LFDUDJXD DQG KRZ WKH 8QLWHG 6WDWHV REWDLQHG WKHLU QXPEHUV
LV WKDW WKH 8QLWHG 6WDWHV LQFOXGHG WKH SURGXFWLRQ GDWD RI IUHH WUDGH ([SRUW
3URGXFWLRQ =RQHV (3= DQG 1LFDUDJXD GLG QRW 7KH 86 JRYHUQPHQW VHHV
WKHVH DV SDUW RI WKH 1LFDUDJXDQ H[SRUW ZKLOH WKH 1LFDUDJXDQ JRYHUQPHQW
GRHV QRW 6LQJHU   ZDV WKH ILUVW WR SRLQW RXW WKDW LQ FDVHV ZKHUH
WKH SURGXFWLRQ LV FRPSOHWHO\ DQG RQO\ FRQQHFWHG ZLWK IRUHLJQ LQYHVWPHQW
LW FUHDWHV PRUH ZHDOWK LQ WKH FRXQWU\ IURP ZKHUH WKH LQYHVWPHQW RULJL
QDWHV WKDQ LQ WKH FRXQWU\ ZKHUH WKH SURGXFWLRQ WDNHV SODFH $OVR %DUDQ
 ² PDGH WKLV SRLQW ,Q UHODWLRQ WR DOO WUDGLQJ SDUWQHUV H[SRUWV
DQG LPSRUWV RQFH DJDLQ LQFUHDVHG EXW GLIIHUHQW IURP WKH WLPH RI 6RPR]D
D FRQVWDQW WUDGH GHILFLW UHPDLQHG %DQFR &HQWUDO GH 1LFDUDJXD D 
(YHQ WKRXJK /LEHUDO SROLFLHV GLG QRW HPSKDVL]H SRYHUW\ UHGXFWLRQ
DQG VRFLDO GHYHORSPHQW PDQ\ VWDWLVWLFDO GHYHORSPHQW LQGLFDWRUV IRU WKLV
SHULRG SRLQW WR DQ RYHUDOO LPSURYHPHQW RI WKH HFRQRPLF VLWXDWLRQ IRU
WKH PDMRULW\ RI 1LFDUDJXDQV ,QIDQW PRUWDOLW\ IHOO 81,*&0(   WKH
UDWH RI XQGHUQRXULVKHG 1LFDUDJXDQV DOVR GHFOLQHG )$2   DQG WKH
XQHPSOR\PHQW UDWH UHPDLQHG VWDEOH %&1     6LQFH WKH ODWH
V HYHQ WKH HFRQRPLF JDS EHWZHHQ ULFK DQG SRRU 1LFDUDJXDQ IDPLOLHV
VHHPV WR KDYH GLPLQLVKHG &,$ E ),'(*  

1LFDUDJXDQ HFRQRPLFV GXULQJ WKH VHFRQG 6DQGLQLVWD

JRYHUQPHQW
2UWHJD 6DDYHGUD ZDV VZRUQ LQ DV SUHVLGHQW RI 1LFDUDJXD LQ -DQXDU\ 
VKRUWO\ EHIRUH D JOREDO ILQDQFLDO FULVLV KLW 8QHPSOR\PHQW ILJXUHV KDYH
LQFUHDVHG VLQFH %&1    DQG PRVW RWKHU HFRQRPLF GHYHORSPHQW
LQGLFDWRUV FRQWLQXH LQ WKH VDPH SRVLWLYH GLUHFWLRQ DV EHIRUH 7KHUH DUH

 $OWKRXJK , KDYH WULHG WR ILQG VWDWLVWLFV WKDW DUH YHULILHG E\ LQWHUQDWLRQDO RUJDQL]DWLRQV
DQG SDUWV RI WKH 1LFDUDJXDQ JRYHUQPHQW DIWHU KDYLQJ ZRUNHG ZLWK 1LFDUDJXDQ VWDWLVWLFV
DQG 1LFDUDJXDQV ZKR KDYH KDQGOHG VXFK VWDWLVWLFV IRU GHFDGHV ZKR KDYH YHU\ OLWWOH FRQIL
GHQFH LQ DQ\ VWDWLVWLFDO ILJXUHV REWDLQHG LQ 1LFDUDJXD , DP QRW RYHUO\ FRQILGHQW WKDW QRW DW
OHDVW SDUW RI WKHVH QXPEHUV ZHUH PDGH XS VRPHZKHUH DORQJ WKH OLQH ,Q SDUWLFXODU VHYHUDO
RI P\ LQIRUPDQWV ZHUH KLJKO\ GRXEWIXO WR VWDWLVWLFV WKDW VKRZHG WKDW WKH *LQLLQGH[ KDG
IDOOHQ GXULQJ WKH WLPH RI /LEHUDO JRYHUQPHQWV
 ,QIDQW PRUWDOLW\ DQG SXEOLF KHDOWK VSHQGLQJV

6 80
'HDWKV RI XQGHU  \HDU ROGV 

70

86' DW  FRQVWDQW SULFHV

5

60
4
50

3
40

2 30

1985 1990 1995 2000 2005 2010

+RQGXUDV 1LFDUDJXD
,QIDQW PRUWDOLW\ UDWH 
3XEOLF KHDOWK VSHQGLQJV LQ 86'
7KH LQIDQW PRUWDOLW\ UDWH RI 1LFDUDJXD KDV VXQN IDVWHU WKDQ WKDW RI QHLJKERU
LQJ +RQGXUDV DOWKRXJK JRYHUQPHQW VSHQGLQJ RQ KHDOWK KDV EHHQ ODUJHU LQ
+RQGXUDV ² /LEHUDO DQG 6DQGLQLVWD JRYHUQPHQWV LQ 1LFDUDJXD KDYH
QRW VKRZQ UHPDUNDEO\ GLIIHUHQW UHVXOWV QRU KDYH 1LFDUDJXDQ JRYHUQPHQW
LQYHVWPHQWV LQ SXEOLF KHDOWK GXULQJ WKH 6DQGLQLVWD JRYHUQPHQW GHYHORSHG
UHPDUNDEO\ GLIIHUHQW WKDQ WKRVH RI /LEHUDO FRQWUROOHG +RQGXUDV ([FHSWLRQV
DUH IRXQG LQ WKH PRVW UHFHQW \HDUV ,Q  ZKHQ +RQGXUDV FXW VSHQGLQJ
PDUNHGO\ IROORZLQJ WKH PLOLWDU\ FRXS DQG LQ  ZKHQ 1LFDUDJXDQ LQIDQW
PRUWDOLW\ UDWH IHOO IURP  WR  ZLWKLQ MXVW  \HDU
9DOXHV KDYH EHHQ DGMXVWHG IRU LQIODWLRQ WR  YDOXH RI 86' XVLQJ WKH 86
8UEDQ &RQVXPHU 3ULFH ,QGH[ 86&3,8  6RXUFH :+2   8167$76  
81,*&0(   86'/%/6 


1LFDUDJXDQ HFRQRPLFV GXULQJ WKH VHFRQG 6DQGLQLVWD JRYHUQPHQW 

QRW \HW VWDWLVWLFV DYDLODEOH IRU DOO LQGLFDWRUV XS WR WKH SUHVHQW EXW DPRQJ
DOPRVW DOO RI WKRVH DYDLODEOH QR UDGLFDO VKLIW LQ DQ\ GLUHFWLRQ FDQ EH QR
WLFHG 7KHUH DUH VRPH VRFLDO SURJUDPV DQG PDMRU HFRQRPLF GHYHORSPHQW
SURMHFWV LQ SODFH WKDW PD\ DIIHFW IXWXUH VWDWLVWLFV SRVLWLYHO\ ,Q D VHQVH WKH
FXUUHQW VLWXDWLRQ LV VRPHZKDW VLPLODU WR WKH V LQ WKDW SRVLWLYH FKDQJH
LV SURPLVHG IRU WKH IXWXUH \HW LQ PDQ\ DUHDV KDV QRW EHHQ DFKLHYHG \HW
7KH VRFLDO SURJUDPV +DPEUH &HUR +& DQG 8VXUD &HUR 8&  ZKLFK WKH
2UWHJD 6DDYHGUD JRYHUQPHQW VWDUWHG DUH DLPHG DW FKDQJLQJ SURGXFWLRQ
SDWWHUQV DOWKRXJK ZLWK PXFK ORZHU H[SHFWDWLRQV WKDQ VRPH SURMHFWV RI
WKH V 7KHVH DUH WZR SURILOHG SURJUDPV WKDW PDNH XS SDUW RI D VHULHV
RI SURJUDPV +& LV D SURJUDP ZKLFK SURYLGHV D IHZ OLYHVWRFN RQH SLJ
RQH FRZ ILYH FKLFNHQ  VKHOWHU IRU WKH DQLPDOV IRRG DQG VHHG WR JURZ
PRUH IRRG DQG WUDLQLQJ DQG PRQLWRULQJ E\ WKH 0LQLVWHULR $JURSHFXDULR \
)RUHVWDO 0$*)25 WR ZRPHQ LQ WKH FRXQWU\VLGH ZKR FRQWURO EHWZHHQ 
DQG  KHFWDUHV RI ODQG 7KH ZRPDQ WKHQ SD\V D WRWDO RI  86' RI
WKH PRQH\ UHFRYHUHG IURP WKH VDOH RI SLJOHWV HJJV DQG RWKHU SURGXFWV
WKDW RULJLQDWH LQ WKH OLYHVWRFN EDFN LQWR D IXQG IRU KHU QHLJKERUKRRG 7KLV
PRQH\ LV WKHQ DFFHVVLEOH IRU IXWXUH FROOHFWLYH LQYHVWPHQWV DQG LV VXSSRVHG
WR HQFRXUDJH FROOHFWLYH GHFLVLRQ PDNLQJ DQG WKH FUHDWLRQ RI FRRSHUDWLYHV
7KH SURJUDP LV PHDQW WR EHQHILW  IDPLOLHV GXULQJ WKH SHULRG ²
.HVWHU   8& LV D SURJUDP WKDW JLYHV RXW PLFURFUHGLW ORDQV WR ZRPHQ
ZLWK VPDOO EXVLQHVVHV VXFK DV VPDOO VKRSV LQ WKH FLWLHV )RU  WKH JRDO
ZDV WR EHQHILW  ZRPHQ DQG DW OHDVW D IDLU VKDUH RI WKH PRQH\ FRPHV
GLUHFWO\ IURP GRQDWLRQV IURP FRXQWULHV VXFK DV 7DLZDQ 1DYDV   7KH
QDWLRQDOO\ RZQHG EDQN ¶%DQFR 3URGX]FDPRV· VWDUWHG LQ  ,W LV VXSSRVHG
WR KDQGOH WKH PRQH\ IRU WKH WZR SURJUDPV DQG DOO VLPLODU SURJUDPV DQG
JLYH FUHGLWV WR VPDOO DQG PHGLXP SURGXFHUV LQ WKH DJULFXOWXUDO SURGXFWLRQ
VHFWRU 7KH FUHDWLRQ ZDV IRU D ORQJ WLPH EORFNHG DQG GUDJJHG RXW E\
RSSRVLWLRQ SROLWLFLDQV LQ WKH QDWLRQDO DVVHPEO\
:KLOH ODQG UHGLVWULEXWLRQ LV QRW D SROLF\ RI 2UWHJD 6DDYHGUD LW FDQ EH
VHHQ LQ VRPH SODFHV 7KH FRPPRQ SUDFWLFH WKDW LV XVHG VHHPV WR EH WR SXW
LQ GRXEW ODQG FODLPV RI ULFK ODQGRZQHUV WKURXJK WKH OHJDO V\VWHP ZKLFK LV
GRPLQDWHG E\ 6DQGLQLVWDV DQG WKHUHE\ XQRIILFLDOO\ UHGLVWULEXWLQJ VRPH
ODQGV VHH DOVR ³ 3RZHU WKURXJK FRPELQLQJ SDUOLDPHQWDU\ DQG DFWLYLVW ZRUN S
  3UHVXPDEO\ VXFK DFWLRQV RQO\ DIIHFW D VPDOO QXPEHU RI IDPLOLHV
2UWHJD 6DDYHGUD KDV SDUWLDOO\ UHWDNHQ FRQWURO RI VRPH RI WKH SULYDWL]HG
LQIUDVWUXFWXUH 7KH 8) ZDV IRUFHG LQWR VHOOLQJ  RI WKH ORFDO FRPSDQ\ LQ
1LFDUDJXD WR WKH JRYHUQPHQW LQ D GHDO ZKLFK JDYH WKH JRYHUQPHQW D VHDW
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

RQ WKH ERDUG RI 8) LQ 1LFDUDJXD LQ  5HXWHUV   (QHUJ\ SULFHV DUH

SROLWLFDOO\ FRQWUROOHG LQ 1LFDUDJXD DQG GR QRW HQWLUHO\ IROORZ IOXFWXDWLRQV
LQ ZRUOG PDUNHWV )RU 1LFDUDJXDQ FRQVXPHUV SULFHV URVH DURXQG  LQ
 GXULQJ D JOREDO HQHUJ\ FULVLV 'XULQJ WKLV WLPH JRYHUQPHQW VXEVLGLHV
ZHUH JLYHQ WR SXEOLF WUDQVSRUW *HQHUDO SRZHU RXWDJHV GXH WR LQFDSDEOH
LQIUDVWUXFWXUH KDSSHQHG DOVR LQ  EXW ZHUH DERXW WR HQG )RQVHFD 7HUiQ
 
:KHQ LW ZDV FOHDU WKDW 2UWHJD 6DDYHGUD ZDV HOHFWHG DQG ZRXOG DVVXPH
SRZHU 9HQH]XHOD LQYLWHG 1LFDUDJXD WR SDUWLFLSDWH LQ WKH $OWHUQDWLYD %ROLYDU
LDQD SDUD ORV SXHEORV GH QXHVWUD $PpULFD $/%$ QHWZRUN RI FRXQWULHV RSSRVHG
WR FXUUHQW JOREDO WUDGH VWUXFWXUHV ,W LQFOXGHG &XED DQG %ROLYLD DW WKH WLPH
DQG KDV VLQFH JURZQ WR DOVR LQFOXGH $QWLJXD DQG %DUEXGD WKH &RPPRQ
ZHDOWK RI 'RPLQLFD (FXDGRU DQG 6DLQW 9LQFHQW DQG WKH *UHQDGLQHV 7KH
$/%$ ZDV LQLWLDWHG LQ  ZLWK D VWDWHG JRDO RI RUJDQL]LQJ WUDGH EHWZHHQ
LWV PHPEHUV 8QOLNH RWKHU WUDGH QHWZRUNV WKH $/%$ DLPV QRW WR OLEHUDOL]H
WUDGH EXW UDWKHU WR ZRUN DV DQ HFRQRPLF PXWXDO DLG QHWZRUN 7KH $/%$
LV PHDQW WR HYROYH LQWR PRUH DQG PRUH RI D FRQWUROOHG HFRQRP\ LQ FRP
PRQ DPRQJ FRXQWULHV ZLWK D VLPLODU HFRQRPLF OHYHO RI GHYHORSPHQW 7KLV
VHHPV WR EH PXFK LQ OLQH ZLWK 5DGLFDO 'HSHQGHQF\ 7KHRU\ 6LQFH 
WKH $/%$ KDV JURZQ WR LQFOXGH D SURMHFW RI D FRPPRQ YLUWXDO FXUUHQF\ IRU
WUDGH EHWZHHQ WKH FRXQWULHV DQG LV DOVR OLQNHG WR QXPHURXV FXOWXUDO DQG
HGXFDWLRQDO H[FKDQJHV $OLDQ]D%ROLYDULDQDRUJ   $/%$ QHJRWLDWLRQV
LQ 'HFHPEHU  HQGHG ZLWK D GHFLVLRQ WR FUHDWH D WHOHFRPPXQLFDWLRQV
FRPSDQ\ WR EH VHW XS E\ WKH $/%$ PHPEHUV E\  DQG WKH PDNLQJ RI
´KXJH DGYDQFHVµ LQ WDONV WR VHW XS D FRPPRQ EDQN IRU WKH $/%$ FRXQWULHV
WR JDLQ PRUH LQGHSHQGHQFH IURP FKDQJHV LQ WKH HFRQRPLHV RI ZHVWHUQ
FRXQWULHV (1'   2UWHJD 6DDYHGUD VLJQHG 1LFDUDJXD RQWR WKH $/%$ LP
PHGLDWHO\ DIWHU DVVXPLQJ SRVLWLRQ 5RGUtJXH] E  7KH $/%$ QHWZRUN
ZDV XVHG WR EULQJ RLO IURP 9HQH]XHOD WR WKH &HQWUDO $PHULFDQ UHSXEOLF
VWDUWLQJ LPPHGLDWHO\ LQ -DQXDU\  %\ 1RYHPEHU  D WRWDO RI  PLO
OLRQ SHWUROHXP SURGXFWV KDG EHHQ LPSRUWHG WKURXJK WKH $/%$ 1 *DUFtD
 
(YHQ WKRXJK WKH WUDGH SDWWHUQ RI 1LFDUDJXD LV LQ WKH SURFHVV RI FKDQJH
D VWURQJ FRQQHFWLRQ WR WKH 8QLWHG 6WDWHV LV VWLOO SUHVHQW ERWK LQ WHUPV RI
LPSRUWV DQG H[SRUWV ,PSRUWV KDYH EHHQ GLYHUVLILHG VRPHZKDW LQ UHFHQW
\HDUV ZLWK WKH VKDUH IURP $VLD DQG 9HQH]XHOD JURZLQJ VLJQLILFDQWO\ 7KH
VKDUH RI &HQWUDO $PHULFDQ LPSRUWV KDV EHHQ HYHQ ZLWK WKDW RI WKH 8QLWHG
6WDWHV VLQFH  VHH DOVR S   ([SRUWV ORRN VRPHZKDW GLIIHUHQW 7KH
 2ULJLQ RI 1LFDUDJXDQ LPSRUWV

800
PLOOLRQ 86' DW  FRQVWDQW SULFHV

600

400

200

0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
8QLWHG 6WDWHV
(XURSHDQ 8QLRQ
&HQWUDO $PHULFD DQG 3DQDPD
9HQH]XHOD
(DVWHUQ (XURSH
$VLD
0H[LFR
'XULQJ WKH WLPH RI 6RPR]D LPSRUWV FDPH SULPDULO\ IURP WKH 8QLWHG 6WDWHV
ZLWK WKH (XURSHDQ 8QLRQ LQ VHFRQG SODFH 'XULQJ WKH V (DVWHUQ (XURSH
WHPSRUDULO\ WRRN WKH SODFH RI WKH 8QLWHG 6WDWHV DV WKH OHDGHU LQ  'XULQJ WKH
/LEHUDO \HDUV LPSRUWV IURP RWKHU &HQWUDO $PHULFDQ FRXQWULHV EHFDPH HYHU
PRUH LPSRUWDQW 0H[LFR EHFDPH D PDMRU VRXUFH RI LPSRUWV LQ ² ,Q
YHU\ UHFHQW \HDUV LPSRUWV IURP 9HQH]XHOD DQG $VLD KDYH EHFRPH DOPRVW DV
LPSRUWDQW DV LPSRUWV IURP &HQWUDO $PHULFD DQG WKH 8QLWHG 6WDWHV 'HVSLWH
WKH SROLWLFDO WDONV DERXW UHQHZHG OLQNV WR 5XVVLD GXULQJ WKH FXUUHQW JRYHUQ
PHQW LPSRUWV IURP (DVWHUQ (XURSH KDYH QRW LQFUHDVHG VLJQLILFDQWO\ VLQFH
 :KLOH LQ WKH V 1LFDUDJXD LPSRUWHG IURP RQO\ RQH PDMRU WUDGLQJ
SDUWQHU LPSRUWV DUH QRZ PXFK PRUH GLYHUVLILHG 6RXUFH %DQFR &HQWUDO GH
1LFDUDJXD E


 'HVWLQDWLRQV RI 1LFDUDJXDQ H[SRUWV

600
PLOOLRQ 86' DW  FRQVWDQW SULFHV

500

400

300

200

100

0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
8QLWHG 6WDWHV
(XURSHDQ 8QLRQ
&HQWUDO $PHULFD DQG 3DQDPD
9HQH]XHOD
$VLD
([SRUWV VKRZ D VRPHZKDW GLIIHUHQW SLFWXUH WKDQ LPSRUWV H[SRUWV WR PRVW
PDUNHWV WRSSHG LQ WKH ODWH 6RPR]D \HDUV DQG KDYH VLQFH EHHQ PXFK ORZHU
2QO\ H[SRUWV WR 9HQH]XHOD DUH JUHDWHU QRZ WKDQ HYHU EHIRUH DQG WKH DPRXQW
RI WKDW LV VWLOO PXFK VPDOOHU WKDQ H[SRUWV WR WKH 8QLWHG 6WDWHV WKH &HQWUDO
$PHULFDQ QHLJKERULQJ FRXQWULHV DQG WKH (XURSHDQ 8QLRQ ([SRUWV WR (DVW
HUQ (XURSH ZHUH QHYHU VLJQLILFDQWO\ ODUJH
7KH GDWD GRHV QRW LQFOXGH SURGXFWLRQV LQ ([SRUW 3URGXFWLRQ =RQHV (3=  6RXUFH
%DQFR &HQWUDO GH 1LFDUDJXD E


1LFDUDJXDQ HFRQRPLFV GXULQJ WKH VHFRQG 6DQGLQLVWD JRYHUQPHQW 

VKDUHV JRLQJ WR WKH 8QLWHG 6WDWHV DQG &HQWUDO $PHULFD DUH WKH ODUJHVW ZLWK
WKH (XURSHDQ 8QLRQ VKDUH DW DERXW KDOI WKDW DQG 9HQH]XHOD DW DERXW D WKLUG
EXW JURZLQJ UDSLGO\ VHH DOVR S   )RU DOO WKH WDON WKHUH LV RI WKH UHQHZDO
RI UHODWLRQV WR 5XVVLD DQG WKH QHJDWLYH YLHZ WKH FXUUHQW JRYHUQPHQW KDV
RI WKH 8QLWHG 6WDWHV WUDGH UHODWLRQV DW WKLV SRLQW GR QRW \HW UHIOHFW WKDW
)RU 1LFDUDJXD SULYDWH RZQHUVKLS VWLOO VWDQGV TXLWH FHQWUDO PRUH VR
WKDQ LQ VRPH RWKHU $/%$ PHPEHU FRXQWULHV UHIOHFWLQJ LQ WKH ZD\ WKH
1LFDUDJXDQ SDUW RI WKH DJUHHPHQW ZDV VHW XS 7KURXJK D OD\HU RI WZR VXE
FRPSDQLHV UHYHQXHV IURP RLO VDOHV LQ 1LFDUDJXD DUH SDLG WR WKH FRPSDQ\
$/%$ GH 1LFDUDJXD 6$ $OEDQLVD  ZKLFK LV  RZQHG E\ 9HQH]XHODQ VWDWH
RLO FRPSDQ\ 3HWUyOHRV GH 9HQH]XHOD 6$ 3'96$ DQG  E\ ¶XQNQRZQ SDUW
QHUV· LQ 1LFDUDJXD $OEDQLVD WKHQ VSOLWV WKH UHYHQXHV VHQGLQJ  WR WKH
9HQH]XHODQ VWDWH  WR D VRFLDO GHYHORSPHQW IXQG FRQWUROOHG E\ $/%$
DQG LW LV QRW TXLWH FOHDU ZKHUH WKH UHPDLQLQJ  JRHV -RVp )UDQFLVFR
/ySH] &HQWHQR LV DW WKH WLPH VLPXOWDQHRXVO\ VHFUHWDU\ RI ILQDQFHV RI WKH
)6/1 DQG YLFHSUHVLGHQW RI $OEDQLVD 1 *DUFtD  
7KH UROH RI WKH )6/1 LQ UHODWLRQ WR SULYDWH FDSLWDOLVWV LV DW WLPHV XQFOHDU
$W WKH FHOHEUDWLRQV RQ  -XO\  2UWHJD 6DDYHGUD RIILFLDOO\ WKDQNHG
WKH 3HOODV IRU VWD\LQJ LQ 1LFDUDJXD WKURXJKRXW WKH V DQG 6DQGLQLVWD
FRQWUROOHG ODERU XQLRQV KHOG FHOHEUDWLRQV LQ KRQRU RI WKH FRPSDQ\ IRU WKH
VWDWHG UHDVRQ RI WKH FRPSDQ\ KDYLQJ KHOSHG 1LFDUDJXD $W WKH VDPH WLPH
GXULQJ PXFK RI  SURWHVWHUV DJDLQVW WKH 3HOODV LQVWDOOHG WKHPVHOYHV DW
WKH 5RWRQGD 0HWURFHQWUR FODLPLQJ WKH\ DUH IRUPHU ZRUNHUV RI WKH ,6$ ZKR
QRZ VXIIHU IURP FKURQLF UHQDO LQVXIILFLHQF\ $FFRUGLQJ WR WKHP XS WR 
ZRUNHUV GLHG GXH WR UHQDO LQVXIILFLHQF\ WKH\ EHOLHYH LV FDXVHG E\ WKH XVDJH
RI SHVWLFLGHV 7KRVH RUJDQL]LQJ WKHVH ZRUNHUV VHHP WR DW OHDVW XQRIILFLDOO\
EH GLUHFWO\ FRQQHFWHG WR WKH )6/1 7KH RIILFLDO OLQH RI WKH )6/1 OHDGHUVKLS
LV WR UHFRJQL]H WKH FRQWLQXHG LPSRUWDQFH RI WKH ROLJDUFK\ ZKLFK FRQVLVWV
RI WKH VDPH IDPLOLHV WKDW ZHUH ULFK LQ WKH WLPH RI 6RPR]D &XDGUD 1~xH]
DQG )RQVHFD 7HUiQ D   7KHUH VHHPV QRW WR EH XQLYHUVDO DJUHHPHQW
RQ WKLV LVVXH DPRQJ )6/1 6DQGLQLVWDV
7KH 6DQGLQLVWD SROLFLHV RI WRGD\ VHHP D ELW FRQWUDGLFWRU\ DW WKLV VWDJH
7KHUH VHHPV WR EH PRUH RI D ZLOOLQJQHVV WR FRRSHUDWH ZLWK SULYDWH FDSLWDO
DQG PXFK OHVV DPELWLRXV SODQV IRU IXQGDPHQWDO HFRQRPLF FKDQJHV WKDQ
ZDV WKH FDVH LQ WKH V $W WKH VDPH WLPH JUDVVURRW RUJDQL]DWLRQ DJDLQVW
ELJ FDSLWDO FRQWLQXHV DQG WKH VWDWH LV WDNLQJ VRPH FRQWURO EDFN DQG KHOSLQJ
VRPH SRRUHU VHFWRUV LQ EHFRPLQJ PRUH LQGHSHQGHQW ,I WKH RIILFLDO GDWD LV
WR EH EHOLHYHG FODVV GLIIHUHQFHV DPRQJ 1LFDUDJXDQV DUH LQ UDSLG GHFOLQH
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

6RPH RI WKHVH GDWD PD\ EH HDVLHU WR XQGHUVWDQG LQ D IHZ \HDUV ZKHQ RQH
NQRZV ZKHUH WKH FXUUHQW GHYHORSPHQW OHDGV

3RSXODU LGHDV DERXW HFRQRPLF UHDOLWLHV DQG PRGHOV

RI WKH SDVW
7KH GLIIHUHQFH LQ HFRQRPLF SROLFLHV EHWZHHQ WKH GLIIHUHQW JRYHUQPHQWV
RYHU WKH SDVW GHFDGHV LV D PDMRU SRLQW RI SROLWLFDO FRQWURYHUV\ LQ WRGD\·V
1LFDUDJXD 9HU\ IHZ VHHP WR EHOLHYH LW SRVVLEOH WR UHWXUQ WR WKH HFRQRPLF
SROLFLHV RI =HOD\D /ySH] EXW WKH ODWH 6RPR]D \HDUV WKH 6DQGLQLVPR RI
WKH V DQG WKH SROLFLHV RI WKH VXEVHTXHQW /LEHUDO JRYHUQPHQWV DOO
VHHP WR EH VHHQ DV RIIHULQJ SRVVLEOH SROLFLHV IRU IXWXUH JRYHUQPHQWV LQ WKH
YLHZ RI PRVW 1LFDUDJXDQV 6LPXOWDQHRXVO\ PRVW RI P\ LQIRUPDQWV MXGJHG
WKH HFRQRPLF SROLFLHV RI D JLYHQ KLVWRULF SHULRG UDWKHU LQGHSHQGHQWO\ RI
WKHLU RZQ SROLWLFDO DIILOLDWLRQ 7KH FULWHULD XVHG WR MXGJH WKH 6RPR]DV
DQG WKH /LEHUDO JRYHUQPHQWV LV YHU\ GLIIHUHQW IURP WKH FULWHULD E\ ZKLFK
PRVW 1LFDUDJXDQV MXGJH WKH 6DQGLQLVWD JRYHUQPHQW RI WKH V , WKLQN
LW LV LPSRUWDQW WR ORRN DW VRPH FRPPRQ MXGJPHQWV DERXW WKH ODVW RQH
RU WZR GHFDGHV RI 6RPR]D JRYHUQPHQW DQG WKH \HDUV VLQFH LQ RUGHU WR
XQGHUVWDQG KRZ 1LFDUDJXDQV HYDOXDWH WKH HFRQRPLF UHDOLWLHV DQG SROLFLHV
RI WKHVH WLPHV

7KH V
7RGD\ D VXUSULVLQJ QXPEHU RI 1LFDUDJXDQV ZDQW WR JR EDFN WR KRZ WKLQJV
ZHUH LQ WKH V , IRXQG WKLV RSLQLRQ PDLQO\ EXW QRW RQO\ DPRQJ XUEDQ
HOLWHV 7KHVH 1LFDUDJXDQV JHQHUDOO\ ZDQW VRPHRQH WR EH SXW LQ FKDUJH DV
SUHVLGHQW ZKR WULHV WR UHLPSOHPHQW DOO WKH HFRQRPLF SROLFLHV DQG IROORZ
WKH VDPH SODQV RI GHYHORSPHQW WKH 6RPR]D UHJLPH RI WKH WLPH XVHG 7KHLU
DUJXPHQW LV WKDW HFRQRPLFDOO\ HYHU\ERG\ ZDV EHWWHU RII EHIRUH WKH UHYROX
WLRQ ´%DFN WKHQ HYHU\ERG\ ZKR ZDQWHG WR ZRUN WR PDNH PRQH\ GLG PDNH
PRQH\µ P\ VHFRQG KRVW LQ /HyQ H[SODLQHG WR PH RQFH 6KH RZQV D ODUJH
GRZQWRZQ KRXVH DQG KHU IDPLO\ RSHUDWHG VHYHUDO EXVHV GXULQJ WKH WLPHV
RI 6RPR]D 7KH GHIHQVH RI WKH 6RPR]D WLPHV GRHV QRW IRFXV RQ SROLWLFDO
IUHHGRPV RU WKH DPRXQW RI FDSLWDO FUHDWHG E\ IRUHLJQ FRPSDQLHV GXH WR
WKHLU HFRQRPLF DFWLYLWLHV LQ 1LFDUDJXD EXW UDWKHU RQ WKH WRWDO DPRXQW RI
PRQH\ DFFHVVLEOH DW WKH WLPH 6RPRFLVWDV VHHP QRW WR IRFXV XSRQ WKH IDFW
3RSXODU LGHDV DERXW HFRQRPLF UHDOLWLHV DQG PRGHOV RI WKH SDVW 

WKDW RSSRUWXQLWLHV WR FUHDWH ZHDOWK ZHUH H[WUHPHO\ XQHYHQO\ GLVWULEXWHG

$QRWKHU DVSHFW WKH\ WHQG WR OHDYH RXW LV WKH HDUWKTXDNH LQ 0DQDJXD LQ
 WKH ERPEDUGLQJ RI FLWLHV DW WKH WLPH RI WKH 6DQGLQLVWD LQVXUUHFWLRQ
DQG WKH &RQWUDZDU ZKLFK DOO JUHDWO\ FRQWULEXWHG WR WKH ORVV RI ZHDOWK DQG
IRU ZKLFK WKH 6DQGLQLVWDV FDQQRW EH KHOG UHVSRQVLEOH
7KRVH WRGD\ LQ IDYRU RI WKH UHYROXWLRQDU\ LQVXUUHFWLRQ RI  IRFXV
RQ )RQVHFD $PDGRU·V SODQV FKDQJH 1LFDUDJXD DV ZHOO DV WKH H[SORLWDWLYH
DVSHFWV RI WKH 6RPR]D HUD DQG HQG WKH XQHTXDO GLVWULEXWLRQ RI ZHDOWK RI
WKDW WLPH 7KH\ GR QRW WDON DERXW KRZ WKH RYHUDOO DPRXQW RI ZHDOWK SUHVHQW
LQ 1LFDUDJXD DW WKDW WLPH PD\ KDYH EHHQ JUHDWHU WKDQ QRZ 1RQH RI WKH
JURXSV VHHP WR VHH KRZ 6RPR]D·V HFRQRPLF SODQV ZRXOG KDYH GHYHORSHG
KDG WKH\ EHHQ DOORZHG WR FRQWLQXH :KHQ WDONLQJ DERXW WKH HFRQRPLFV
RI 6RPR]D 1LFDUDJXDQV GHVFULEH ZKDW FRQFUHWH HFRQRPLF UHDOLWLHV ZHUH
OLNH DW WKH WLPH RI 6RPR]D , KDYH QHYHU KHDUG DQ\RQH FODLPLQJ 6RPR]D·V
SROLFLHV KDG WKH\ EHHQ H[WHQGHG IRU DQRWKHU IHZ GHFDGHV ZRXOG KDYH OHG
WR EHWWHU ZHOIDUH DQG SURVSHULW\ IRU D JUHDWHU VKDUH RI WKH SRSXODWLRQ RU
WKDW WKH\ ZRXOG KDYH OHW 1LFDUDJXDQ EXVLQHVV RZQHUV HQMR\ LQFUHDVLQJO\
JUHDWHU UHWXUQV

7KH V
7KH V HFRQRPLF KLVWRU\ LV ODUJHO\ VLPSOLILHG E\ ERWK 6DQGLQLVWDV DQG
/LEHUDOV /LEHUDOV RIWHQ FODLP WKDW WKH ODQG UHIRUPV RI 6DQGLQLVWDV VFDUHG
DZD\ DOO RZQHUV RI FDSLWDO 6RPH 6DQGLQLVWDV FODLP WKDW DOO ODQGV ZHUH
UHGLVWULEXWHG WR WKH ODQG ZRUNHUV ZKLOH RWKHUV FODLP WKH WUXWK OLHV VRPH
ZKHUH LQEHWZHHQ 7KH YDULRXV SROLWLFDO DFWV ZKLFK VWLOO OHIW WKUHH TXDUWHUV
RI DJULFXOWXUDO SURGXFWLRQ XQGHU SULYDWH FRQWURO PLJKW DW ILUVW QRW VHHP
SDUWLFXODUO\ FRPPXQLVWVRFLDOLVW $V QRWHG WUDQVLWLRQ SHULRGV RI QDWLRQ
DOL]DWLRQV DUH JHQHUDOO\ VHHQ DV QHFHVVDU\ ZKHQ VRFLDOLVWV FRPH WR SRZHU
7KH )6/1 EHOLHYHG PRUH WLPH ZRXOG EH QHHGHG IRU 1LFDUDJXD DQG D PL[HG
HFRQRP\ ZRXOG EH QHFHVVDU\ IRU WKH IRUHVHHDEOH IXWXUH +R\W   
$ IHZ SURIHVVLRQDO 6DQGLQLVWDV ZKR UHDOL]H WKDW VRFLDOLVP LQ PXFK RI
(DVWHUQ (XURSH LV OHVV SRSXODU WKDQ 6DQGLQLVPR LQ 1LFDUDJXD SRUWUD\ WKLV
DV D YLUWXH RI 6DQGLQLVPR 7KH 6DQGLQLVWD )HUQDQGR )RQVHFD H[SODLQHG KRZ
KH EHOLHYHG 1LFDUDJXD LQ WKH V ZDV GLIIHUHQW IURP LWV (DVW (XURSHDQ

 :KHWKHU RSSRUWXQLWLHV LQ UHDOLW\ ZHUH OHVV HYHQO\ GLVWULEXWHG LV VRPHWKLQJ , KDYH

DUULYHG DW SXUHO\ E\ OHWWLQJ P\VHOI EH FRQYLQFHG E\ WKH PDMRULW\ RI P\ LQIRUPDQWV 7R P\
NQRZOHGJH WKH 6RPR]DV UHFRUGHG QR GDWD RQ HFRQRPLF LQHTXDOLW\
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

DOOLHV DV SDUW RI DQ H[SODQDWLRQ ZK\ LW PDGH VHQVH WR ZRUN IRU WKH UHWXUQ
WR SRZHU GXULQJ WKH V ZKHQ WKH ¶UHDO VRFLDOLVP· RI (DVWHUQ (XURSH KDG
GLVDSSHDUHG

<HV ZH GLG XVH 0DU[LVP EXW ZH XVHG LW DV D PHWKRG WR DQD

O\]H UHDOLW\ >«@ :H QHYHU JDYH XS RQ &KULVWLDQLW\ :H WRRN
WKDW LQ +HUH ZH QHYHU GLG DZD\ ZLWK SULYDWH EXVLQHVV 2Q
WKH FRQWUDU\ ZH VDLG WKDW 1LFDUDJXD ZRXOG EH D PL[HG HFRQ
RP\

$FFRUGLQJ WR PRVW WKHRULHV E\ 6DQGLQLVWDV , KDYH FRPH DFURVV LQ WKH V

1LFDUDJXD IROORZHG D GHYHORSPHQW SDWK ZKLFK HYHQWXDOO\ ZRXOG OHDG WR
D PRUH SURVSHURXV VRFLHW\ IRU DOO 7KH FRPSOHWH QDWLRQDOL]DWLRQ RI DOO ROL
JDUFK\ SURSHUW\ PD\ KDYH EHHQ SODQQHG DW D ODWHU VWDJH ZKHQ WKH FRXQWU\
ZRXOG EH UHDG\ IRU LW 2Q WKH RWKHU KDQG VHYHUDO 6DQGLQLVWDV WHOO PH WKLQJV
VXFK DV ´,W KDV WR EH UHFRJQL]HG WKDW WKH *3 VWD\HG GXULQJ WKH HQWLUH SH
ULRGµ 7KLV VHHPV WR VKRZ WKH\ DUH XQDZDUH RI WKH QDWLRQDOL]DWLRQV RI
WKH ODWH V 6XFK VWDWHPHQWV DUH JHQHUDOO\ PDGH E\ WKRVH 6DQGLQLVWDV
ZKR HPSKDVL]H WKH QDWLRQDOLVW DVSHFW RI 6DQGLQLVPR 0RVW 6DQGLQLVWDV
VHH WKH HFRQRPLF LQYROYHPHQW RI WKH 8QLWHG 6WDWHV DQG WKH PHGGOLQJ LQ
1LFDUDJXDQ SROLWLFV RI WKH 86 JRYHUQPHQW DV WKURXJKDQGWKURXJK HYLO
DQG GLUHFWO\ RSSRVHG WR WKH SODQV RI WKH 6DQGLQLVWDV DQG WKH LQWHUHVWV RI
WKH 1LFDUDJXDQ SHRSOH 7KH OLWWOH HFRQRPLF DLG WKH &DUWHU UHJLPH JDYH LQ
WKH YHU\ EHJLQQLQJ LV DOVR QRW FRQVLGHUHG 7KH GLIIHUHQFHV EHWZHHQ &DUWHU
DQG 5HDJDQ DUH QRW FRQVLGHUHG DQG WKH DFWLRQV RI WKH 8QLWHG 6WDWHV DUH
VHHQ DV PHFKDQLFDOO\ OLQNHG WR LWV UROH DV DQ HPSLUH DQG QRW DV WKH UHVXOW RI
DQ\ GHFLVLRQV E\ LQGLYLGXDO SHRSOH 7KH IDFW WKDW WKH ZRUVHQLQJ RI WHUPV
IRU ORDQV WR WKH WKLUG ZRUOG KDSSHQHG JOREDOO\ WR DOOLHV RI ERWK WKH 6RYLHW
8QLRQ DQG WKH 8QLWHG 6WDWHV GRHV QRW VHHP WR EH DQ LPSRUWDQW IDFWRU IRU
PRVW 6DQGLQLVWDV RU /LEHUDOV 2QH VLGH EODPHV WKH 6DQGLQLVWD JRYHUQPHQW
RI WKH WLPH ZKLOH WKH RWKHU VLGH EODPHV WKH EORFNDGH DQG ZDU SHUSHWUDWHG
E\ WKH 8QLWHG 6WDWHV 6DQGLQLVWDV JHQHUDOO\ OLNH WR VSHFXODWH KRZ WKHLU SROL
FLHV ZRXOG KDYH FRQWLQXHG DQG WKH\ EHOLHYH HYHQWXDOO\ DOO WKH SUREOHPV
WKH JRYHUQPHQW IDFHG ZRXOG KDYH EHHQ UHVROYHG KDG WKH VDPH SROLWLFV
EHHQ FRQWLQXHG 0RVW 6DQGLQLVWDV SRLQW RXW WKDW WKH &RQWUDV GHVWUR\HG
FURSV DQG LQIUDVWUXFWXUH DQG WKDW WKLV ZDV D PDMRU GHWULPHQWDO IDFWRU IRU
WKH HFRQRP\ 7KH\ EHOLHYH LW ZRXOG KDYH EHHQ PXFK HDVLHU WR WXUQ WKH
HFRQRP\ DURXQG ZLWKRXW WKH ZDU DQG WKDW WKH HFRQRPLF SUREOHPV ZRXOG
HYHQWXDOO\ KDYH YDQLVKHG
 ,QIODWLRQ UDWH IRU FRQVXPHU JRRGV

104
3ULFH FKDQJH IURP SUHYLRXV \HDU LQ 

103

102

101

1970 1975 1980 1985 1990 1995 2000 2005 2010

,QIODWLRQ UDWHV ZHUH PRUH VWDEOH LQ WKH 6RPR]D DQG /LEHUDO \HDUV WKDQ LQ
WKH 6DQGLQLVWD \HDUV LQ WKH V UHDFKLQJ  LQ  $OVR GXULQJ
WKH VHFRQG 6DQGLQLVWD SHULRG WKH \HDUV   DQG  
VKRZHG WKH KLJKHVW LQIODWLRQ UDWHV ZLWKLQ D GHFDGH
´'XH WR SROLWLFDO DQG HFRQRPLF HYHQWV FLYLO ZDU DQG K\SHULQIODWLRQ  GDWD >DI
WHU  DQG@ SULRU WR  DUH OHVV UHOLDEOHµ ,0)   7KH WZR GDWDEDVHV
RI WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0) GR QRW DJUHH RQ LQIODWLRQ UDWHV IRU
VHYHUDO RI WKH \HDUV LQ WKLV SHULRG 'DWD IURP WKH  GDWDEDVH KDV EHHQ
JLYHQ SUHIHUHQFH RYHU WKRVH IURP  6RXUFH ,0)    &,$ F

'XH WR WKH &: VRPH 1LFDUDJXDQV IURP ERWK SROLWLFDO FDPSV DUJXH WKH
UDGLFDO SROLFLHV HYHQWXDOO\ DGRSWHG ZHUH PRVWO\ GXH WR H[WHUQDO SUHVVXUH
IURP WUDGLQJ SDUWQHUV LQ (DVWHUQ (XURSH UDWKHU WKDQ DQ\ LQWHUQDO LGHRORJ\
,Q WKDW VHQVH LW LV GLIILFXOW WR GHWHUPLQH ZKHWKHU WKH XVH RI 'HSHQGHQF\
7KHRU\ ZDV FHQWUDO GXH WR WKH ZLOO RI WKH 6DQGLQLVWDV RU EHFDXVH WKLV ZDV
H[SHFWHG E\ WKH (DVWHUQ (XURSHDQ JRYHUQPHQWV WKH\ GHDOW ZLWK 0RVW
6DQGLQLVWD LQIRUPDQWV ZKR VSHDN DERXW WKHLU RZQ LQYROYHPHQW DQG H[SH
ULHQFHV VLQFH WKH WLPH RI 6RPR]D OHDYH RXW WKH ODWH V RU MXVW PHQWLRQ
WKHP LQ JHQHUDO WHUPV VWDWLQJ ZKDW KDSSHQHG WR WKH FRXQWU\ UDWKHU WKDQ
WR WKHPVHOYHV &DUROLQD ,FDEDOFHWD *DUD\ ZDV RQH RI YHU\ IHZ 6DQGLVWDV
ZLOOLQJ WR PHQWLRQ WKH HFRQRPLF SUREOHPV RI WKH ODWH V DQG KRZ WKHVH
ZHUH IHOW DW WKH WLPH


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

«,W ZDV TXLWH KDUG ,W ZDV QRW RQO\ D ZDU EXW DOVR DQ
HFRQRPLF HPEDUJR ZKLFK PHDQW WKDW FHUWDLQ PHDVXUHV ZHUH
WDNHQ VXFK DV WKH FRQGHQVLQJ RI WKH VWDWH DSSDUDWXV ZKLFK
PHDQW OHWWLQJ WKRXVDQGV RI SHRSOH JR ,I WKHUH ZDV D VRXUFH
RI HPSOR\PHQW LQ 1LFDUDJXD LW ZDV WKH VWDWH ,W ZDV DOZD\V
WKH VWDWH ZKR PDLQWDLQHG WKH SHRSOH DQG NHSW WKHP EXV\
2EYLRXVO\ ZKHQ WKH\ OHW SHRSOH JR WKDW PHDQV WKDW WKHUH
DUH WKLQJV KDSSHQLQJ LQ WKH HFRQRPLF VSKHUH WKDW DUH YHU\
VHULRXV
1RZ ZH IURP WKH SRSXODU FODVVHV DQG WKRVH ZLWK VRPH«
OHW·V MXVW VD\ OHYHO RI FXOWXUH GLGQ·W IHHO WKDW WKH  LQIOD
WLRQ KXUW XV PXFK :H IHOW WKDW ZH ZHUH DOZD\V UHLPEXUVHG
HYHU\ ZHHN DQG LW ZDV RQO\ KDUG WR PDQDJH VR PDQ\ ELOOV
2WKHU WKDQ WKDW KRZHYHU« 0D\EH LW·V EHFDXVH ZH GLGQ·W KDYH
D FXOWXUH RI HFRQRPLFV NQRZOHGJH RI HFRQRPLFV ² LW KDG EHHQ
QHJDWHG DERXW KRZ D EXGJHW ZRUNV RU WKDW ZKDW ZDV KDSSHQ
LQJ ZDVQ·W JRRG
:H GLGQ·W IHHO DODUPHG E\ LW 7KHUH ZHUH VR PDQ\ WKLQJV
WR GR ² WKH KHDOWK FDPSDLJQ WKH YDFFLQDWLRQ FDPSDLJQ FDP
SDLJQ IRU FOHDQLQJ XS WKH FDPSDLJQ WR SODQW WUHHV« $OO WKDW
ZH OLNHG DQG ZHUH YHU\ DQLPDWHG WR GR :H ZHUH PDQ\ ZKR
MXVW GLGQ·W IHHO OLNH JHWWLQJ LQWR WKH VWUXFWXUH >RI VWDWH RU
SDUW\@ EHFDXVH ZH IHOW WKHUH ZHUH FHUWDLQ SHRSOH ZKR ZDQWHG
WKHLU SRVLWLRQ RI SRZHU WKHUH 0DQ\ RI XV VLPSO\ ZDQWHG WR
GR WKLQJV

6HUDItQ *DUFtD 7RUUHV LV D IULHQG RI %D\DUGR -RVp )RQVHFD *DOR WKH

EURWKHULQODZ RI ,FDEDOFHWD *DUD\ IURP WKH GD\V RI WKH UHYROXWLRQ :KHQ
, LQWHUYLHZHG KLP KH GHVFULEHG LW DV RQH RI WKH LQLWLDO WDVNV RI KLV JURXS
EHIRUH WKH UHYROXWLRQ WR JR RXW LQWR WKH FRXQWU\VLGH RI 1DQGDLPH DQG
H[SODLQ WR WKH SRSXODWLRQ WKDW WKH\ ZHUH ILJKWLQJ IRU DQ DJUDULDQ UHIRUP
WR HPSRZHU WKH SRRU *DUFtD 7RUUHV WKHQ ZHQW RQ WR H[SODLQ

,W LV D KLVWRULF FRQTXHVW $QG LW FRQWLQXHV WR EH D VWUXJJOH

WRGD\ EHFDXVH WKH UHYROXWLRQ GLG QRW PDQDJH WR DFKLHYH WKLV
JRDO DQG IRU RWKHU UHDVRQV ² WKH HFRQRPLF VLWXDWLRQ DQG WKH
ZDU ² LW GLGQ·W SHUPLW XV WR GHYHORS DQ DJULFXOWXUDO UHIRUP

 1DQGDLPH LV D VPDOO YLOODJH VLWXDWHG LQ WKH GHSDUWDPHQWR *UDQDGD

6HUDItQ *DUFtD 7RUUHV H[SODLQV WKDW WKH LQLWLDO JRDOV RI WKH UHYROXWLRQ ZHUH
HFRQRPLF UHIRUPV WR EHQHILW WKH SRRU PDMRULW\ RI WKH SRSXODWLRQ EXW WKDW
WKHVH ZHUH QHYHU DFKLHYHG GXULQJ WKH V GXH WR WKH FLUFXPVWDQFHV WKH
UHYROXWLRQDULHV IDFHG DQG WKDW WKHVH UHIRUPV WKHUHIRUH VWLOO QHHG WR WDNH
SODFH

WKDW ZRXOG SHUPLW WKH 1LFDUDJXDQ FLWL]HQ WKH SRRU WR EH D

IXQGDPHQWDO SDUW RI WKH HFRQRPLF DQG VRFLDO GHYHORSPHQW
RI WKH FRXQWU\
1R PDWWHU ZKHWKHU WKH VWRU\ LV WROG E\ 6DQGLQLVWD RU /LEHUDO WKH SUREOHPV
WKDW GLG H[LVW GR QRW VHHP WR FRXQW DJDLQVW WKH 6DQGLQLVWDV 7KH 6DQGLQ
LVWDV VHHP WR EH MXGJHG PRUH E\ ZKDW WKH\ HYHQWXDOO\ ZRXOG KDYH GRQH
UDWKHU WKDQ WKH UHDOLW\ RI WKHLU DFFRPSOLVKPHQWV ,Q D VHQVH WKLV KDV D FHU
WDLQ VLPLODULW\ WR WKH IRUP RI 5RVWRZ·V SKDVH PRGHO VHH DOVR ³ 0DLQVWUHDP
PRGHUQL]DWLRQ GHYHORSPHQW WKHRULHV S  DQG VHYHUDO RWKHU QRQVRFLDOLVW
WKHRULHV RI GHYHORSPHQW 7KH HFRQRPLF ZHOIDUH RI WKH PDVVHV LV VHHPLQJO\
WKH IRFXV RI HFRQRPLF SROLFLHV <HW LW LV DVVXPHG E\ WKHVH WKHRULHV WKDW
LPSURYHPHQWV LQ RYHUDOO OLYLQJ VWDQGDUGV DUH QRW DFKLHYDEOH LQ WKH VKRUW
WHUP DQG D SKDVH RI HFRQRPLF KDUGVKLS ZKLFK WHPSRUDULO\ PD\ HYHQ ZRUV
HQV WKH LQGLYLGXDO·V SRVLWLRQ LV QHFHVVDU\ EHIRUH DQ LPSURYHPHQW ZLOO EH
SRVVLEOH
,W PXVW EH VDLG WKDW WKH ODQG UHGLVWULEXWLRQV DQG VRFLDO SROLFLHV ZHUH
PHDQW WR EHQHILW WKH SRSXODFH LPPHGLDWHO\ DQG WKDW LW ZDV GXH WR IDFWRUV
RXWVLGH WKH FRQWURO RI WKH 6DQGLQLVWD JRYHUQPHQW HVSHFLDOO\ WKH ZDU WKDW
PDGH WKLV LPSRVVLEOH 7KH GLIIHUHQFH EHWZHHQ GUHDPV DQG UHDOLW\ LQ WKH
V LV FRQVLGHUHG E\ PDQ\ 6DQGLQLVWDV WRGD\ ´6HH LQ WKH ILUVW SKDVH
RI WKH UHYROXWLRQ ZH KDG ZDUµ RQH LQIRUPDQW WROG PH ´,Q ZDUWLPH \RX


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

FDQQRW SODQ DQ\WKLQJ 1RZ LQ WKLV VHFRQG SKDVH WKH ZDU LV JRQH DQG ZH
ILQDOO\ JHW D FKDQFH WR GR VRPHWKLQJµ 7KLV VHQWLPHQW VHHPV WR EH VKDUHG
E\ PDQ\ 6DQGLQLVWDV 7KLV LV WUXHU DW D KLJKHU RUJDQL]DWLRQDO OHYHO WKDQ
DPRQJ WKH FRPPRQ SHRSOH

7KH WUDQVLWLRQ IURP SRZHU

2QH FDQ LQWHUSUHW WKH 3LxDWD DV WKH JRYHUQPHQW WU\LQJ WR EULQJ DW OHDVW
SDUWV RI WKH GUHDP RI WKH IXWXUH LQWR WKH SUHVHQW 1R RQH GLVFXVVHV ZKDW
ZRXOG KDYH KDSSHQHG LI WKH LQFRPLQJ QRQ6DQGLQLVWD JRYHUQPHQW KDG
GHFLGHG WR UHYHUVH WKH 3LxDWD ,W GRHV QRW VRXQG DV WKRXJK DQ\RQH IHOW WKLV
ZRXOG EH DQ RSWLRQ IRU WKH QHZ JRYHUQPHQW

7KH V²
6RPH ORRN EDFN DW WKH SHULRG EHWZHHQ  DQG  DV D SHULRG RI HFR
QRPLF RSSRUWXQLWLHV 7KLV LV D VPDOO JURXS ZKLFK ZDV DEOH WR EXLOG XS
EXVLQHVV GXULQJ WKLV SHULRG ,W LV HDVLHU WR ILQG 1LFDUDJXDQV ZLWK D SRVLWLYH
RSLQLRQ RI WKH HFRQRPLF SROLFLHV RI 6RPR]D WKDQ RI WKH /LEHUDO UHJLPHV
DIWHU WKH 6DQGLQLVWDV HYHQ WKRXJK LW ZDV D IRUPDOO\ GHPRFUDWLF SHULRG
ZLWK SRVLWLYH HFRQRPLF GHYHORSPHQW DFFRUGLQJ WR VHYHUDO LQGLFDWRUV
:KHQ RQH ERDUGV D WD[L LW LV YHU\ FRPPRQ IRU WKH GULYHU WR DVN RQH
ZKDW RSLQLRQ RQH KDV RI 1LFDUDJXDQ SROLWLFV 0DQ\ WLPHV ZKHQ , FDQQRW
JXHVV WKH GULYHU·V LGHRORJ\ , KDYH WULHG WR VSHDN DERXW DVSHFWV RI 1LFDUDJXD
WKDW MXVW DERXW HYHU\ERG\ DJUHHV XSRQ 2QH VXFK VXEMHFW LV KRZ WKH 8)
RSHUDWHV WKH 1LFDUDJXDQ HOHFWULFLW\ QHW -XVW DERXW DOO 1LFDUDJXDQV VHHP
WR DJUHH WKDW WKH SULYDWL]DWLRQ RI  ZDV ZURQJ DQG WKDW 2UWHJD 6DDYH
GUD GLG QRW JR IDU HQRXJK LQ KLV UHQDWLRQDOL]DWLRQ , KDYH EHHQ DPD]HG
DERXW KRZ IOH[LEOH PDQ\ 1LFDUDJXDQV DUH LQ FRPELQLQJ D QHJDWLYH YLHZ
RI WKH HFRQRPLF SROLFLHV RI WKH WLPH RI /LEHUDO JRYHUQPHQWV RU 6RPR]D
ZLWK D SRVLWLYH YLHZ RI WKH SROLWLFDO OHDGHUV ² ZKHQ D 1LFDUDJXDQ VWDUWV
RXW E\ DFFXVLQJ 2UWHJD 6DDYHGUD RI EHLQJ D FRPPXQLVW DQG D WKLHI RQO\
WKHQ WR VZLWFK WKH WKHPH RI WKH GLVFXVVLRQ WR ZK\ 2UWHJD 6DDYHGUD VKRXOG
LPPHGLDWHO\ QDWLRQDOL]H WKH 8) 7KLV DOVR ZRUNV LQ RWKHU FRPELQDWLRQV RI
GHIHQGLQJ WKH SROLWLFDO OHDGHUV RI RQH SHULRG DQG WKH HFRQRPLF LGHRORJ\
RI DQRWKHU $W RQH SRLQW D WD[L GULYHU ZKR KDG MXVW RXWHG KLPVHOI DV D 6R
PRFLVWD DQG LQGLFDWHG WKDW DQRWKHU &RQWUD ZDU VKRXOG EH LQLWLDWHG DJDLQVW
WKH FXUUHQW ¶GLFWDWRULDO· 6DQGLQLVWD JRYHUQPHQW VZLWFKHG WR GLVFXVV WKH
 *URVV 'RPHVWLF 3URGXFW SHU &DSLWD

4,500

4,000
 333 LQW SHUVRQ

3,500

3,000

2,500

2,000

1950 1960 1970 1980 1990 2000

7KH *URVV 'RPHVWLF 3URGXFW *'3 SHU &DSLWD URVH IRU PRVW RI WKH SHULRG IURP
 XQWLO WKH UHYROXWLRQDU\ LQVXUUHFWLRQ RI  ZLWK F\FOLFDO GRZQWXUQV
LQ ² DQG  DQG GUDVWLF GRZQWXUQV LQ ² DQG ² ZKLFK
OLNHO\ ZHUH FDXVHG DW OHDVW LQ SDUW E\ WKH ILJKWV EHWZHHQ *XDUGLD 1DFLRQDO
DQG 6DQGLQLVWDV ,Q WKH SHULRG ² *'3 JUHZ DW DQ DYHUDJH RI  D
\HDU *'3 URVH DJDLQ ² DOWKRXJK LW RQO\ UHDFKHG  RI WKH  OHYHO
² LW IHOO DJDLQ GUDVWLFDOO\ XQWLO LW KDG UHDFKHG MXVW  RI WKH 
OHYHO 7KH /LEHUDO JRYHUQPHQWV VWDELOL]HG *'3 ZLWK D PRGHUDWH LQFUHDVH RI
² RI  EXW GLG QRW PDQDJH WR LQFUHDVH LW RYHUDOO DV *'3 IHOO LQ
² DQG ² ,Q  *'3 ZDV XQGHU WKH  OHYHO *'3 KDV EHHQ
ULVLQJ DJDLQ GXULQJ WKH FXUUHQW 6DQGLQLVWD JRYHUQPHQW DJDLQ DW DQ DYHUDJH
 D \HDU 7KH *URVV 1DWLRQDO ,QFRPH *1, SHU &DSLWD ZKLFK LV XVHG E\
PDQ\ QHZHU GDWD VRXUFHV FORVHO\ IROORZV WKH GHYHORSPHQW RI WKH *'3 LQ WKH
FDVH RI 1LFDUDJXD :% F 
7KH ILJXUHV SUHVHQWHG KHUH GR QRW VHHP WR EH DFFHSWHG XQLYHUVDOO\ /DUJH
GLVFUHSDQFLHV ZHUH QRWLFHG LQ FRPSDULVRQ ZLWK RWKHU GDWD VRXUFHV VRPH RI
ZKLFK VKRZHG XS WR D  RYHUDOO LQFUHDVH LQ *'3 LQ WKH SHULRG ²
7KH GDWD VRXUFH FKRVHQ KHUH LV WKH RQO\ GDWD VRXUFH WKDW LQFOXGHV WKH IXOO
GDWD UDQJH IURP  WR  6RXUFH +HVWRQ 6XPPHUV DQG $WHQ 


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

8) DQG H[SODLQHG QRW RQO\ WKDW KH EHOLHYHV WKDW 2UWHJD 6DDYHGUD ZDV SHU
IHFWO\ FDSDEOH RI UXQQLQJ D QDWLRQDOL]HG HOHFWULFLW\ V\VWHP EXW DOVR WKDW
WKH UHSUHVHQWDWLYHV RI 8) VKRXOG LPPHGLDWHO\ EH KXQJ RQ WKHLU RZQ FDEOHV
IRU VWHDOLQJ IURP WKH 1LFDUDJXDQ SHRSOH +H VDZ QR FRQWUDGLFWLRQ LQ KLV
WZR YLHZV
1R 1LFDUDJXDQ , PHW IDQWDVL]HG DERXW VRPH EHWWHU IXWXUH WKDW PD\
KDYH FRPH LI RQO\ WKH HFRQRPLF SODQV RI WKH /LEHUDOV KDG WKH\ EHHQ DOORZHG
WR FRQWLQXH ZLWKRXW LQWHUUXSWLRQ 7KLV DJDLQ KDV WR GR ZLWK D YHU\ GLIIHUHQW
ZD\ RI MXGJLQJ WKLV SHULRG LQ FRPSDULVRQ WR KRZ WKH SHULRG RI 6DQGLQLVPR
LQ WKH V LV MXGJHG ,W VHHPV WKDW ZKLOH VRPH 1LFDUDJXDQV ZLVK WR UHYLYH
WKH /LEHUDO SDUW\ DV D VWURQJHU SROLWLFDO IRUFH WKH HFRQRPLF SDUW KDUGO\
ILQGV DQ\ SURSRQHQWV HYHQ WKRXJK HFRQRPLFDOO\ WKLV SHULRG PD\ KDYH
EHHQ PRUH SURVSHURXV WKDQ WKH ZDUWRUQ V

7KH FXUUHQW 6DQGLQLVWD JRYHUQPHQW

:KHQ WKH VHFRQG 2UWHJD 6DDYHGUD JRYHUQPHQW WRRN RIILFH PDQ\ 6DQGLQ
LVWDV KRSHG IRU WKH UHWXUQ RI VRPH RI WKH HFRQRPLF SROLFLHV RI WKH V
:KHQ WKH SRVLWLRQ RI PD\RU RI 0DQDJXD ZDV ZRQ E\ WKH 6DQGLQLVWD FDQGL
GDWH +HUW\ /HZLWHV LQ  LW GLG QRW EULQJ ZLWK LW OHIWLVW HFRQRPLF UHIRUPV
$V VRPH VHH LW QHROLEHUDOLVP ZDV PDGH FRPSDWLEOH ZLWK 6DQGLQLVPR 9DU
JDV  ²  7KLV DJDLQ PD\ KDYH VRPHZKDW OLPLWHG H[SHFWDWLRQV RI D
6DQGLQLVWD SUHVLGHQF\ HYHQ EHIRUH WKH  HOHFWLRQV
´6HH ZH KDYH DOUHDG\ KDG DQ DJUDULDQ UHIRUPµ RQH 6DQGLQLVWD WROG
PH H[SODLQLQJ ZK\ LW LV QRW SRVVLEOH WR RQFH PRUH UHGLVWULEXWH ODQGV ,Q DG
GLWLRQ LW LV JHQHUDOO\ EHOLHYHG WKDW FRQYHQWLRQV ZLWK WKH ,0) SURKLELW DQ\
IXUWKHU ODQG UHGLVWULEXWLRQV 7KRVH 6DQGLQLVWDV ZKR VSHDN DERXW LW PRVWO\
KRSH IRU WKH VWDWH WR EX\ SRUWLRQV RI ODQGV WKDW FDQ WKHQ EH UHGLVWULEXWHG
0RVW )6/1 6DQGLQLVWDV UHDOL]H VRPH W\SH RI ZLGHU ODQG GLVWULEXWLRQ LV
QHHGHG LI WKH JRDO LV IRU WKH SRRUHVW VHFWRUV RI VRFLHW\ WR EHQHILW IURP
+& EHFDXVH WKH PLQLPXP UHTXLUHPHQW IRU SDUWLFLSDWLRQ LQ +& LV RZQLQJ
 KHFWDUHV RI ODQG :LWKRXW WKLV ODQG RZQHUVKLS WKH\ ZRXOG QHYHU EH
HOLJLEOH WR SDUWLFLSDWH DQG DGYDQFH
0RVW )6/1 6DQGLQLVWDV VHH WKH SURJUDPV +& DQG 8& DV SRVLWLYH PHD
VXUHV (YHQ WKRXJK SRYHUW\ OHYHOV KDYH QRW FKDQJHG PXFK VLQFH WKH\ ZHUH
SXW LQ SODFH PDQ\ )6/1 6DQGLQLVWDV H[SHFW WKLV WR FKDQJH LQ WKH IXWXUH
´1LFDUDJXD ZLOO EH D YHU\ GLIIHUHQW FRXQWU\µ , ZDV WROG PRUH WKDQ RQFH ,W
LV HPSKDVL]HG E\ 6DQGLQLVWD RIILFLDOV WKDW WKH VRFLDOLVP DERXW WR EH FUHDWHG
 *LQL FRHIILFLHQW IRU IDPLOLHV

 HTXDOV WRWDO HTXDOLW\ DQG  HTXDOV WRWDO LQHTXDOLW\ 60

55

50

45

40

35

30

25

20
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
1LFDUDJXD
0H[LFR
8QLWHG 6WDWHV
&DQDGD
6ZHGHQ
6RXUFH &,$ E :% F ),'(*  
(YHQ WKRXJK /LEHUDO HFRQRPLF SROLFLHV DUH VHHQ DV XQFRQFHUQHG ZLWK WKH
SRRU ILJXUHV IURP WKH &,$ VKRZ WKDW HFRQRPLF GLIIHUHQFHV EHWZHHQ ULFK
DQG SRRU KDYH EHHQ GLPLQLVKLQJ VLPLODU WR 0H[LFR DQG RSSRVLWH WR ZKDW
KDV KDSSHQHG LQ WKH 8QLWHG 6WDWHV 7KH ILJXUHV IURP WKH ),'(* DOVR VKRZ
DQ LPSURYHPHQW GXULQJ WKH FXUUHQW JRYHUQPHQW 2QH H[SODQDWLRQ IRU WKLV
FRXOG EH WKDW WKH JRYHUQPHQW LV VXFFHVVIXO LQ SURPRWLQJ WKH FDXVH RI WKH
SRRUHVW 2WKHU SODXVLEOH H[SODQDWLRQV FRXOG EH WKDW WKH ILJXUHV KDYH EHHQ
PDQLSXODWHG EHIRUH SXEOLFDWLRQ WKDW WKH ULFK KDYH GLVFRYHUHG PRUH ZD\V
RI KLGLQJ WKHLU PRQH\ HIILFLHQWO\ RU WKDW 1LFDUDJXDQ FDSLWDO KDV ORVW LQ
WKH VWUXJJOH ZLWK PXOWLQDWLRQDO IRUHLJQRZQHG FRPSDQLHV 1RQH RI WKRVH
1LFDUDJXDQV NQRZOHGJHDEOH DERXW *LQL FRHIILFLHQWV ZKR , FRQVXOWHG ZHUH
FRQILGHQW LQ WKHLU H[SODQDWLRQV RI WKH QXPEHUV 7KH ILJXUHV IURP WKH :%
VKRZ VRPHZKDW PRUH QHJDWLYH GHYHORSPHQWV IRU 0H[LFR DQG 1LFDUDJXD
ZKLOH WKHLU RQO\ ILJXUHV IRU WKH 86 &DQDGD DQG 6ZHGHQ DOO IURP WKH \HDU
 DUH FORVH WR WKRVH RI WKH &,$


 8QHPSOR\PHQW UDWH

10

7


2
2000 2002 2004 2006 2008 2010
1LFDUDJXD
8QLWHG 6WDWHV
0H[LFR
7KH JRYHUQPHQW RI -RVp 'DQLHO 2UWHJD 6DDYHGUD KDV WR GHDO ZLWK KLJKHU
RIILFLDO XQHPSOR\PHQW ILJXUHV WKDQ LWV SUHGHFHVVRUV 7KH SUREOHP LV JOREDO
,W WRXFKHV FRXQWULHV VXFK DV 0H[LFR DQG WKH 8QLWHG 6WDWHV GXULQJ WKHVH \HDUV
7KH  ILJXUH IRU 1LFDUDJXD LV EDVHG RQ WKH DYHUDJH RI D QHZ PRQWKO\
VXUYH\ ZKHUHDV WKH ROGHU ILJXUHV ZKHUH EDVHG RQ DQQXDO PRUH JHQHUDO
VXUYH\V 7KH ILJXUHV DUH WKHUHIRUH QRW QHFHVVDULO\ FRPSDUDEOH %RWK LQ WKH
FDVH RI 0H[LFR DQG 1LFDUDJXD DQG WR VRPH H[WHQW DOVR LQ WKH 8QLWHG 6WDWHV
XQGHUHPSOR\PHQW UDWHV DUH ODUJH 7KHUHIRUH XQHPSOR\PHQW UDWHV VD\ OLWWOH
DERXW ZKHWKHU PRVW SHRSOH DUH ZRUNLQJ RU QRW DQG FDQQRW QHFHVVDULO\ EH
FRPSDUHG PHDQLQJIXOO\ EHWZHHQ FRXQWULHV 1HYHUWKHOHVV WKH FXUYHV RI
WKHVH JUDSKV DUH VLPLODU ZKHQ LQFOXGLQJ YDULRXV W\SHV RI XQGHUHPSOR\PHQW
DQG WKHUHIRUH JLYH D VRPHZKDW DFFXUDWH SLFWXUH RI GHYHORSPHQWV ZLWKLQ
HDFK FRXQWU\ 6RXUFH %&1     %/6   ,0 


 5HJLVWHUHG &ULPHV SHU &DSLWD VLQFH 
·10−2

1.5


0.5

1980 1985 1990 1995 2000 2005 2010

&ULPHV DJDLQVW SHRSOH
3URSHUW\ FULPHV
7KH RIILFLDO ILJXUHV PHDVXULQJ FULPH UDWHV VKRZ D QHJDWLYH GHYHORSPHQW
VLQFH WKH PLGV 7KHVH KDYH LQFUHDVHG UDWKHU GUDPDWLFDOO\ VLQFH WKH
V 7KH FXUUHQW JRYHUQPHQW GRHV QRW VHHP WR KDYH EHHQ DEOH WR GHFUHDVH
FULPH OHYHOV VLJQLILFDQWO\ WKURXJK LWV PHDVXUHV 7KH 1LFDUDJXDQ SROLFH
QHYHUWKHOHVV EHOLHYHV WKDW 1LFDUDJXDQ FULPH VWDWLVWLFV DUH VWLOO PXFK ORZHU
WKDQ LQ PRVW RI &HQWUDO $PHULFD DOWKRXJK WKH 1LFDUDJXDQ SROLFH IRUFH LV
PXFK VPDOOHU WKDQ WKDW RI LWV QHLJKERULQJ FRXQWULHV 6RXUFH 3ROLFtD 1DFLRQDO
  :% F


 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

ZLOO IRFXV QRW RQO\ RQ WKH PDWHULDO ZHOOEHLQJ EXW HTXDOO\ RQ VSLULWXDO VDW
LVIDFWLRQ ZLWKRXW DQ\ ORVV RI IUHHGRP RI H[SUHVVLRQ )RQVHFD 7HUiQ D 
,W FDQ EH DVVXPHG WKDW DOORZLQJ WKH SROLWLFDO ULJKW ZLWK LWV PHGLD DWWDFN WKH
JRYHUQPHQW FRQVWDQWO\ ZLOO PDNH WKH SURFHVV PRUH WLPH FRQVXPLQJ EXW
DOVR WKDW WKH IRFXV DZD\ IURP PDWHULDO ZHOOEHLQJ ZLOO PHDQ WKDW HFRQRPLF
UHIRUPV ZLOO EH OLPLWHG
6RPH RI 2UWHJD 6DDYHGUD·V SROLFLHV ZKLFK VHHP WR KDYH QR LPPHGLDWH
YLVLEOH HIIHFW LQ WHUPV RI GUDPDWLFDOO\ LQFUHDVLQJ OLYLQJ VWDQGDUGV RI DQ\
JURXS DUH VHHQ E\ 6DQGLQLVWDV DV SUHYHQWLQJ D ZRUVH VFHQDULR 7KH H[DFW
HIIHFW FDQQRW EH PHDVXUHG EHFDXVH LW LV LPSRVVLEOH WR NQRZ KRZ EDG D
FULVLV RWKHUZLVH ZRXOG KDYH EHHQ $FFRUGLQJ WR )RQVHFD 7HUiQ  WKH
VXEVLGLHV JLYHQ IRU SXEOLF WUDQVSRUW LQ  ZRXOG KDYH EHHQ XQVXVWDLQDEOH
LI QRW IRU WKH DUULYDO RI 9HQH]XHODQ RLO DQG DFFRUGLQJ WR $OEDQLVD RIILFLDOV
WKH SULFH KLNH LQ  ZRXOG KDYH EHHQ DURXQG ² LQVWHDG RI  LI
SULFHV ZHUH QRW VXEVLGL]HG 5RJHUV   , KHDU WKDW VDPH VWRU\ RIWHQ
ZKHQ XVLQJ SXEOLF WUDQVSRUW LQ WKH 6DQGLQLVWD VWURQJ SDUWV RI WKH 3DFLILF
FRDVWDO DUHDV
$OPRVW QR /LEHUDOV FRQVLGHU DQ\ RI WKH SURJUDPV SRVLWLYHO\ )RU WKHP
HYHU\WKLQJ WKH JRYHUQPHQW GRHV LV FRUUXSWLRQ $ IHZ 0RYLPLHQWR 5HQR
YDGRU 6DQGLQLVWD 056 IROORZHUV KDG VRPH SRVLWLYH WKLQJV WR VD\ DERXW
WKH SURJUDPV ZKHQ , DVNHG WKHP EXW LPPHGLDWHO\ SRLQWHG RXW WKDW ZKLOH
´VRFLDOO\ WKLV JRYHUQPHQW LV GRLQJ JUHDW LQ WHUPV RI GHPRFUDF\ LW·V PXFK
ZRUVH >WKDQ GXULQJ WKH /LEHUDO JRYHUQPHQWV@µ
+LGGHQ FULWLFLVP DOVR FRPHV IURP WKH VLGH RI 6DQGLQLVWDV ZKR H[
SHFW PRUH UDGLFDO UHIRUPV 6RPH SDUW\ RIILFLDOV VXFK DV )RQVHFD 7HUiQ
D  FRQWLQXH WR DUJXH IRU WKH UHSODFHPHQW RI FDSLWDOLVP ZLWK D &XEDQ
VW\OH VRFLDOLVW HFRQRP\ 6XFK D V\VWHP LV VSHFLILFDOO\ GLVWLQJXLVKHG E\ )RQ
VHFD 7HUiQ I IURP D VRFLDOGHPRFUDF\ ZKHUH FDSLWDOLVP FRQWLQXHV
WR H[LVW DQG LQ ZKLFK RQO\ JDLQV DUH UHGLVWULEXWHG DW D KLJKHU UDWH DQG KH
VHHV WKH $/%$ DV D VWHSSLQJ VWRQH LQ WKDW GLUHFWLRQ 7KHUH DUH WZR PDLQ
LQWHUSUHWDWLRQV DPRQJ 1LFDUDJXDQV RI ZKDW WKH FRPSOH[ VHWXS ZLWK WKH
$/%$UHODWHG EXVLQHVVHV PHDQV 7KRVH FULWLFDO RI WKH JRYHUQPHQW FODLP
WKH )6/1 XVHV DLG PRQH\ IRU SULYDWH ILQDQFLDO JDLQ 7KH\ VD\ WKDW WKH XVDJH
RI WKH VWDWH IRU SULYDWH JDLQV LV QRW WKH ILUVW WLPH LQ WKH KLVWRU\ RI WKH )6/1
:KHUHDV WKRVH LQ VXSSRUW RI WKH JRYHUQPHQW FODLP LW LV MXVW DQ DFFRXQWLQJ
WULFN WR JHW DURXQG WKH UHJXODWLRQV WKH ,0) KDV RQ FDSV RI HPSOR\PHQW
LQ WKH SXEOLF VHFWRU DQG WR JHW WKH PRQH\ DURXQG WKH QDWLRQDO DVVHPEO\
ZKHUH WKH RSSRVLWLRQ KDV D PDMRULW\ 7KHVH DUH WKH VDPH SHRSOH ZKR FODLP
3RSXODU LGHDV DERXW HFRQRPLF UHDOLWLHV DQG PRGHOV RI WKH SDVW 

WKH 3LxDWD ZDV ILUVW DQG IRUHPRVW D UXVK WR PDNH ODQG GHDOV RIILFLDO DQG
KDG DOUHDG\ EHHQ SXW LQWR SUDFWLFH EXW IRU ZKLFK WKH FRUUHVSRQGLQJ SDSHU
ZRUN KDG QRW EHHQ ILOOHG RXW 7KH WZR $OED DQG 3LxDWD DUH RIWHQWLPHV
FRQQHFWHG E\ WKHVH FODLPV
7KH VRFLDOLVP WKDW 6DQGLQLVPR VWDQGV DW OHDVW IRU VRPH VHFWLRQV RI WKH
SDUW\ DOZD\V LV D SURMHFW RI WKH IXWXUH $W WLPHV WKLV SURMHFW VWDQGV LQ FRQ
WUDGLFWLRQ ZLWK FXUUHQW SROLFLHV 7KLV VKRZV LQ DQ XQGHUO\LQJ GHEDWH RQ
ZKDW WR GR ZLWK WKH XOWUD ULFK (YHQ WKRXJK 2UWHJD 6DDYHGUD RIILFLDOO\ SUR
QRXQFHV VXSSRUW IRU WKH 3HOODV IDPLO\ ¶WKH ROLJDUFK\· LV D WHUP IUHTXHQWO\
XVHG E\ 6DQGLQLVWDV WRGD\ WR GHVFULEH WKHLU HQHP\ $W WKH FHOHEUDWLRQV RQ
 -XO\  EDQQHUV ZLWK VORJDQV VXFK DV ´2XU HQHP\ LV WKH ROLJDUFK\µ
ZHUH HYLGHQW 6XFK EDQQHUV PD\ DW WKH WLPH PDLQO\ EH WDUJHWHG DW WKH
0RQWHDOHJUH IDPLO\ DQG (GXDUGR 0RQWHDOHJUH·V ELG IRU WKH SUHVLGHQF\ RU
DQ\ RWKHU SROLWLFDO RIILFH 1R 6DQGLQLVWD , IRXQG VDLG RSHQO\ WKDW WKH SURS
HUWLHV RI WKH 3HOODV VKRXOG EH QDWLRQDOL]HG LPPHGLDWHO\ 7KH 6DQGLQLVWDV
VHHP LQ VRPH ZD\ IRU QRZ WR DFFHSW VXFK D FRQWUDGLFWLRQ ZKLFK OLHV LQ WKH
SURFODPDWLRQ RI VRFLDOLVP LQ FRPELQDWLRQ ZLWK WKH FRQWLQXHG H[LVWHQFH RI
VXFK ROLJDUFK\ JURXSV
,Q HFRQRPLF UHODWLRQV ZLWK RWKHU FRXQWULHV WKHUH LV D GLVFUHSDQF\
EHWZHHQ FXUUHQWO\ H[LVWLQJ WUDGH IORZ DQG ZKDW 6DQGLQLVWDV WDON DERXW
ZKLFK LV ZKDW LV WR KDSSHQ LQ WKH IXWXUH :KLOH WKH LPSRUWDQFH RI WKH
8QLWHG 6WDWHV FOHDUO\ KDV QRW IDGHG LQ UHDO HFRQRPLF WHUPV WKH ZD\ LW LV
RIWHQ GLVFXVVHG LV DV LI WKH FRQQHFWLRQ WR WKH 8QLWHG 6WDWHV DOUHDG\ LV FORVHG
RII DQG 9HQH]XHOD DOUHDG\ LV WKH PDLQ HFRQRPLF IRUFH LQ 1LFDUDJXD %H
VLGHV 9HQH]XHOD D IHZ RWKHU FRXQWULHV DUH RIWHQ PHQWLRQHG DV GHOLYHULQJ
HFRQRPLF KHOS DQG EHLQJ IXWXUH WUDGLQJ SDUWQHUV $PRQJ WKHVH DUH 7DLZDQ
0D KLJKOLJKWV 7DLZDQ1LFDUDJXD WLHV   5XVVLD VHH DOVR ³ 7KH *HRUJLD
FRQIOLFW S   /LE\D &DVWUR  DQG ,UDQ 0RUULVVH\   7KHVH FRXQ
WULHV DUH PHQWLRQHG DV D VHFRQGDU\ OHYHO ZLWK WKHLU VXSSRUW VHHQ DV OHVV
VLJQLILFDQW ZKHQ FRPSDUHG WR WKH VXSSRUW SURYLGHG E\ 9HQH]XHOD
$V LQ WKH FDVH RI WKH ILUVW 6DQGLQLVWD JRYHUQPHQW WKH FXUUHQW 6DQ
GLQLVWDV ZHUH GXULQJ P\ WLPH LQ 1LFDUDJXD LQ FKDUJH RI D FRXQWU\ ZKLFK
ZDV QRW GRLQJ ZHOO ZLWK IXWXUH SODQV IRU D FRPSOHWHO\ GLIIHUHQW HFRQRPLF
V\VWHP WKDW ZLOO QRW EH LPSOHPHQWHG IXOO\ IRU D ORQJ WLPH WR FRPH 1HYHU
WKHOHVV 6DQGLQLVWDV DUH QRW MXGJHG E\ WKLV LQ WKH VDPH ZD\ DV /LEHUDOV DUH
MXGJHG E\ WKH HFRQRPLF UHDOLW\ RI 1LFDUDJXDQV LQ WKHLU SHULRG RI JRYHUQ
PHQW )6/1 6DQGLQLVWDV H[SHFW HFRQRPLF VXFFHVV VRPH WLPH LQ WKH IXWXUH
JLYHQ WKDW 6DQGLQLVWD SROLFLHV DUH FRQWLQXHG
 (FRQRPLF GHYHORSPHQW H[SHFWDWLRQV DQG SHUFHSWLRQV

&RQFOXGLQJ UHPDUNV
$V ZH KDYH VHHQ RYHU WKH SDVW FHQWXU\ 1LFDUDJXD OLYHG WKURXJK DW OHDVW
WZR SKDVHV RI QDWLRQDOO\ FRQWUROOHG WHFKQLFDO PRGHUQL]DWLRQ FRQQHFWHG
ZLWK FHQWUDOL]DWLRQ GXULQJ WKH WLPHV RI =HOD\D /ySH] DQG WKH ODWHU SDUW
RI WKH 6RPR]DV DQG VRPH SKDVHV RI VWDJQDWLRQ LQ ZKLFK YLUWXDOO\ QR WHFK
QRORJLFDO DGYDQFHV ZHUH PDGH EXW LQWHUQDWLRQDO FDSLWDO ZDV SHUPLWWHG
IUHH DFFHVV ,Q FRQWUDVW WR ERWK W\SHV RI SKDVHV VWDQG WKH WZR SHULRGV RI
6DQGLQLVPR 'XULQJ ERWK RI WKHVH DGYDQFHV LQ WKH OLYLQJ VWDQGDUGV RI WKH
PDVVHV DUH FRXSOHG ZLWK KLJKHU OHYHOV RI HTXDOLW\ DQG QDWLRQDO FRQWURO
RI GHYHORSPHQW ZKLFK DOVR LQFOXGHV HOHPHQWV RI SRSXODU FRQWURO RI WKH
HFRQRP\ WKURXJK WKH HVWDEOLVKPHQW RI FRRSHUDWLYHV 7KH ODVW FKDSWHU
VKRZHG WKDW WKH SROLWLFDO RXWORRN LV KLJKO\ LQIRUPHG E\ WKH SDVW <HW LQ
WKLV FKDSWHU ZH KDYH VHHQ WKDW WKH LGHDV RI WKH HFRQRP\ DUH IRU D JUHDW
SDUW FRQFHQWUDWHG RQ WKH IXWXUH 7KH PHDVXUH RI VXFFHVV IRU PRVW VHHPV
QHYHU WR EH WKH FXUUHQW HFRQRP\ DV PXFK DV WKH IXWXUH HFRQRP\ LI WKH
GHYHORSPHQWV VWDUWHG GXULQJ 6DQGLQLVWD JRYHUQPHQWV DUH FRQWLQXHG LQ
GHILQLWHO\ ,Q WKLV VHQVH WKHUH LV D PDUNHG GLIIHUHQFH LQ KRZ WKH JURXSV
DUH VHHQ LQ FRPSDULVRQ ZLWK WKH ODVW FKDSWHU LQ ZKLFK LW ZDV SUHVHQWHG
WKDW ODUJHO\ WZR JURXSV /LEHUDOV DQG 6DQGLQLVWDV KDYH WZR HTXDOO\ YDOLG
YHUVLRQV RI KLVWRU\ XSRQ ZKLFK WKH\ KRSH WKH IXWXUH ZLOO EH EDVHG
 %MSPRF "F?NRCP

2F?NGLE NMJGRGAQ

+HUH , ZDQW WR SUHVHQW VRPH RI WKH PDLQ SROLWLFDO HYHQWV GXULQJ P\ WLPH
LQ 1LFDUDJXD )RU PH VHYHUDO VXUSULVLQJ HYHQWV WRRN SODFH GXULQJ WKLV
SHULRG EXW KDYLQJ IROORZHG WKH FRXQWU\ FORVHO\ EHIRUH DQG VLQFH , WKLQN
WKDW RYHUDOO LW ZDV IDLUO\ DYHUDJH IRU WKH FXUUHQW SUHVLGHQF\ ²  7KLV
IROORZLQJ SUHVHQWDWLRQ VKRXOG WKHUHIRUH JLYH DQ RYHUDOO LQVLJKW LQWR WKH
SROLWLFDO OLIH RI 1LFDUDJXD VLQFH 
0RVW VLJQLILFDQW SROLWLFDO HYHQWV LQ 1LFDUDJXD KDYH DQ HOHPHQW RI SRS
XODU SDUWLFLSDWLRQ ,Q HDFK RI WKHVH HYHQWV 1LFDUDJXDQV LQWHUSUHW WKHP
DV EHLQJ LQ OLQH ZLWK ZHOONQRZQ KLVWRULFDO HYHQWV 6LQFH WKHQ VHYHUDO
RI WKRVH HYHQWV WKDW KDSSHQHG GXULQJ P\ WLPH KDYH WXUQHG LQWR KLVWRU
LFDO HYHQWV RI WKHLU RZQ DQG 1LFDUDJXDQV UHIHU WR WKHP DV VXFK 7KHVH
HYHQWV GHPRQVWUDWHG WR PH KRZ 6DQGLQLVWD SROLWLFV DUH LQIOXHQFHG E\ D
FRPELQDWLRQ RI HYHQWV RQ WKH ZRUOG VFDOH DQG WKH RUJDQL]DWLRQDO HIIRUWV
RI WKH SRSXODU PDVVHV ZLWKLQ WKH FRXQWU\ 6LPLODU WR KRZ 1LFDUDJXDQV
SRUWUD\ WKHLU QDWLRQDO KLVWRU\ DOVR ZKHQ GHVFULELQJ FXUUHQW HYHQWV LW LV
FRPPRQ WKDW WKH\ SODFH DJHQF\ LQ 1LFDUDJXDQ KDQGV HYHQ ZKHQ WKH\
UHODWH WKH DFWLRQV WDNLQJ SODFH LQ 1LFDUDJXD WR LQWHUQDWLRQDO PRYHPHQWV
&RPSOLFDWLQJ PDWWHUV HYHQ PRUH GLIIHUHQW JURXSV EHOLHYH WKH\ VSHDN LQ
WKH QDPH RI 6DQGLQLVPR DV PXFK DV WKH JRYHUQPHQW GRHV DQG WU\ DFWLYHO\
WR VKDSH WKH SROLWLFV RI WKH -RVp 'DQLHO 2UWHJD 6DDYHGUD JRYHUQPHQW 7KHVH
IDFWRUV MRLQWO\ PDNH XS D G\QDPLF ZKLFK PHDQV SRSXODU SDUWLFLSDWLRQ DQG
LQWHUSUHWDWLRQ RI LQWHUQDWLRQDO HYHQWV LV DQ HVVHQWLDO SDUW LQ VKDSLQJ WKH
FRXQWU\·V SROLFLHV 7KLV FRXSOHG ZLWK SRSXODU SDUWLFLSDWLRQ LQ 1LFDUDJXD
LV DW WLPHV XVHG WR WU\ WR DFKLHYH JDLQV LQWHUQDWLRQDOO\ , KRSH WKLV FKDSWHU
GHPRQVWUDWHV WKDW 1LFDUDJXD LV QRW DV FHQWUDOO\ FRQWUROOHG E\ 3UHVLGHQW
2UWHJD 6DDYHGUD DV WKH 1LFDUDJXDQ ULJKW WULHV WR PDNH WKH LQWHUQDWLRQDO
PHGLD EHOLHYH )RU PH IROORZLQJ WKH GDLO\ SROLWLFV DOVR PDGH PH UHDOL]H
WKDW WKH 2UWHJD 6DDYHGUD JRYHUQPHQW DQG WKH 6DQGLQLVWD SDUW RI WKH SRSX
ODWLRQ FDQ EH FUHDWLYH LQ WKHLU SRUWUD\DO RI LQWHUQDWLRQDO SROLWLFV LQ RUGHU
WR DFKLHYH JDLQV DW D QDWLRQDO OHYHO 7R JDWKHU PDWHULDO IRU WKLV FKDSWHU LW
ZDV YLWDO IRU PH WR EH SUHVHQW ZKHQ SROLWLFDOO\ UHOHYDQW HYHQWV KDSSHQHG


 6KDSLQJ SROLWLFV

6XEVHTXHQWO\ LQWHUYLHZLQJ SHRSOH ZKR KHDUG DERXW WKH HYHQW ZKLOH EHLQJ
XQUHODWHG WR LW JDYH PH DQRWKHU VLGH RI ZKDW WUDQVSLUHG

7UDQVSRUW ZRUNHU VWULNH 0D\ 

7KLV VWULNH VKRZHG PH KRZ DQ LQWHUQDWLRQDO HYHQW D ULVH LQ RLO SULFHV
LQIOXHQFHG WKH SUHPLVHV IRU LQQHU1LFDUDJXDQ FRQIOLFWV DOWKRXJK WKLV ZDV
QRW UHFRJQL]HG E\ PRVW RI WKH 1LFDUDJXDQV , GLVFXVVHG LW ZLWK 2QH RI
WKH ILUVW HYHQWV RI SROLWLFDO VLJQLILFDQFH , ZLWQHVVHG GXULQJ P\ VWD\ LQ
1LFDUDJXD ZDV D WUDQVSRUW ZRUNHUV· VWULNH ,W ODVWHG IRU  GD\V GXULQJ
ZKLFK WUDQVSRUW LQEHWZHHQ FLWLHV LQ WKHRU\ FDPH WR D FRPSOHWH VWDQGVWLOO
,Q WKH FLW\ RI /HyQ ZKHUH , ZDV DW WKH WLPH DOO WUDQVSRUW GLG VWRS DQG
WUDQVSRUW ZRUNHUV VWRRG DW WKH HQWUDQFH URDG WR WKH FLW\ IURP 0DQDJXD
WR KLQGHU DQ\RQH IURP HQWHULQJ WKH FLW\ )URP RWKHU SDUWV RI WKH FRXQWU\
, KHDUG WKDW WKH VLWXDWLRQ ZDV QRW DV VHULRXV /HyQ LV NQRZQ DV WKH PRVW
6DQGLQLVWD RI FLWLHV DQG PRVW RI WKH WUDQVSRUW ZRUNHUV , VSRNH WR XVHG WKDW
DV WKH H[SODQDWLRQ IRU ZK\ WKH SURWHVWV ZHUH WKH ODUJHVW WKHUH
7KH LVVXH WKH\ IRXJKW RYHU ZDV JDV SULFHV 7KH JRYHUQPHQW KDG RE
WDLQHG SHWUROHXP DW IDYRUDEOH SULFHV IURP 9HQH]XHOD LQ D VFKHPH LQ ZKLFK
9HQH]XHOD VROG RLO WR WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 SDUW\
DW PDUNHW SULFHV 2QO\  KDG WR EH SDLG ZLWKLQ  GD\V DQG WKH UHPDLQ
LQJ  ZDV WR EH SDLG  \HDUV ODWHU ZLWK D IDYRUDEOH LQWHUHVW UDWH RI ²
1HYHUWKHOHVV WKH )6/1 GHFLGHG WR VHOO JDV DW PDUNHW SULFHV WR FRQVXPHUV
DQG DOOHJHGO\ VSHQW WKH PRQH\ WKH\ VHH DV D ORDQ IRU  \HDUV WR ILQDQFH
VRFLDO SURMHFWV
%HIRUH DQG GXULQJ WKH SURWHVWV WKH ULJKWZLQJ PHGLD WULHG WR SURYH
WKDW JDV SULFHV LQ 1LFDUDJXD ZHUH KLJKHU WKDQ DQ\ZKHUH HOVH LQ &HQWUDO
$PHULFD GHVSLWH WKH IDYRUDEOH WHUPV ZLWK 9HQH]XHOD DQG KLQWHG WKDW WKH
PRQH\ ZDV JRLQJ LQWR WKH SHUVRQDO SRFNHW RI 2UWHJD 6DDYHGUD $W WKH WLPH
RLO SULFHV SHDNHG DQG EHFDXVH WKH JRYHUQPHQW UHJXODWHG WKH IDUH SULFH IRU
WKH LQWHUFLW\ WUDQVSRUW SURILWV DQG ZDJHV RI WKH WUDQVSRUW ZRUNHUV VKUDQN
'XULQJ WKH GD\V RI WKH SURWHVW , ZHQW EDFN DQG IRUWK EHWZHHQ VWULNHUV
DQG )6/1 KHDGTXDUWHUV 8QWLO WKHQ WUDQVSRUW ZRUNHUV ZHUH RQH RI WKH
VWURQJHVW EDVHV IRU WKH )6/1 $OVR LW LV D FRPPRQ UXPRU WKDW WKH SROLFH
DUH KHDYLO\ LQILOWUDWHG E\ 6DQGLQLVWDV 1RZ WKH SROLFH ZHUH VHQW WR VWRS WKH
WUDQVSRUW ZRUNHUV IURP EORFNLQJ WKH URDG 7KH FLW\ RI /HyQ ZDV ZKHUH WKH
ELJJHVW FODVK EHWZHHQ GHPRQVWUDWRUV DQG SROLFH RFFXUUHG DQG DW WKH SUHVV
FRQIHUHQFH WKH WUDQVSRUW ZRUNHUV KHOG DIWHU WKH FODVK WKH VSRNHVSHRSOH
6DQGLQLVWD WUDQVSRUW ZRUNHUV VKRZ WKH ZRXQGV LQIOLFWHG XSRQ WKHP E\ SROLFH
GXULQJ ZKDW WKH\ UHIHU WR DV D ¶PDVVDFUH· RUJDQL]HG E\ 3UHVLGHQW -RVp 'DQLHO
2UWHJD 6DDYHGUD

RI WKH WUDQVSRUW ZRUNHUV SXEOLFO\ VWDWHG ´:H KDYH QRW VHHQ D PDVVDFUH
RI WKLV PDJQLWXGH VLQFH WKH WLPH RI >GLFWDWRU@ 6RPR]Dµ 7KH QHZVSDSHU
/D 3UHQVD DQQRXQFHG WKDW RQH RI WKH WUDQVSRUW ZRUNHUV KDG GLHG LQ WKH
FODVK 7KH\ GLG QRW UHWUDFW WKLV VWDWHPHQW ZKHQ )6/1 RIILFLDOV SRLQWHG RXW
WKDW WKLV KDG QRW LQ IDFW WDNHQ SODFH EXW WKH\ DFNQRZOHGJHG LW TXLHWO\
E\ QRW UHSRUWLQJ RQ LW DQ\ IXUWKHU 7KH /HyQ SROLFH DQG ORFDO SDUW\ RIIL
FLDOV VKRZHG VRPH V\PSDWK\ IRU WKH GHPDQGV RI WKH WUDQVSRUW ZRUNHUV
LQ WKHLU SXEOLF DQQRXQFHPHQWV :KHQ VSHDNLQJ WR PH WKH SDUW\ RIILFLDOV
KLJKOLJKWHG WKDW WKH PRQH\ UHFRYHUHG IURP WKH 9HQH]XHOD RLO GHDO ZDV QRW
RQO\ PHDQW WR EHQHILW WKH WUDQVSRUW VHFWRU EXW DOVR RWKHU DUHDV WKHUHIRUH
WKH WUDQVSRUW ZRUNHUV VKRXOG QRW ZLQ WKH FRQIOLFW
$W ILUVW , EHOLHYHG , ZLWQHVVHG WKH HQG RI WKH )6/1 DV D XQLWHG SROLWLFDO
IRUFH ,W VHHPHG ORJLFDO WKH SDUW\ ZRXOG VSOLW LQWR YDULRXV IDFWLRQV $W
RQH WLPH , VDW RQ WKH FXUE ZKLOH WKH WUDQVSRUW ZRUNHUV EORFNHG WKH URDG
DQG QH[W WR PH VDW WKH /D 3UHQVD UHSRUWHU FRYHULQJ WKH FRQIURQWDWLRQV
/D 3UHQVD KDG EHHQ SRVLWLYH WRZDUGV WKH VWULNHUV DQG , ZRQGHUHG ZK\
JLYHQ WKDW /D 3UHQVD LV QRUPDOO\ D QHZVSDSHU RI WKH ULJKW ´7KLV LV D EDWWOH
EHWZHHQ ¶WKHPµ· WKH UHSRUWHU H[SODLQHG WR PH 7KLV ¶WKHP· LV WKH FHUWDLQ
6DQGLQLVWD SDUW RI WKH SRSXODWLRQ %RWK WKH 6DQGLQLVWDV DQG WKRVH QRW
EHORQJLQJ WR WKH WKHP DOO VHHPHG WR EHOLHYH WKDW  RI DOO 1LFDUDJXDQV
LGHQWLI\ ZLWK )6/1 6DQGLQLVPR 0RVW WUDQVSRUW ZRUNHUV , VSRNH WR ZKRP ,
DVNHG DERXW WKH 6DQGLQLVWD FRQQHFWLRQ VDZ WKHPVHOYHV DV SDUW RI VDLG 
EXW H[SODLQHG WKH\ IHOW FKHDWHG E\ 2UWHJD 6DDYHGUD 2QH RI WKHP VWDWHG


 6KDSLQJ SROLWLFV

)RU DOO WKRVH \HDUV ZH KDYH EHHQ KHOSLQJ WKHP LQ DOO WKH FDP
SDLJQV VR RI FRXUVH ZH H[SHFWHG WKHP WR JLYH XV VRPHWKLQJ
>RQFH LQ SRZHU@

$V WKH VWULNH GUHZ WR DQ HQG 2UWHJD 6DDYHGUD ZHQW RQ 79 DQG VKRZHG

KRZ WKH JRYHUQPHQW VSHQW WKH PRQH\ WKH\ REWDLQHG IURP WKH RLO GHDO
7KH H[SODQDWLRQ VHHPHG WR VDWLVI\ PRVW 6DQGLQLVWDV EXW VRPH RI P\ LQIRU
PDQWV UHPDLQHG VNHSWLFDO 7KH F\QLFLVP GLG QRW VHHP WR KDYH UHIHUHQFH
WR DQ\ FRQFUHWH SRLQW LQ 2UWHJD 6DDYHGUD·V H[SODQDWLRQ EXW ZDV D JHQHUDO
VNHSWLFLVP DV WR ZKHWKHU DQ\ LQIRUPDWLRQ RULJLQDWLQJ IURP DQ\ 1LFDUDJX
DQ JRYHUQPHQW FRXOG EH DFFHSWHG DV WUXWK 7KH JRYHUQPHQW SURPLVHG
WKH WUDQVSRUW ZRUNHUV WR JLYH WKHP D GLVFRXQW RQ JDV SULFHV DW FHUWDLQ JDV
VWDWLRQV DQG LW VHHPHG WKH WUDQVSRUW ZRUNHUV IRUJRW DERXW WKH DOOHJHG
¶PDVVDFUH· +DOI D \HDU ODWHU /LEHUDOV DQG )6/1 6DQGLQLVWDV FODVKHG XQGHU
HQWLUHO\ GLIIHUHQW FLUFXPVWDQFHV DQG WKH WUDQVSRUW ZRUNHUV RQFH DJDLQ
KHOG ZLWK WKH )6/1 , OHDUQHG WKURXJK WKLV WKDW WKH 6DQGLQLVWD SDUW RI WKH
SRSXODWLRQ XVHV VXFK SK\VLFDO PDQLIHVWDWLRQV DV SDUW RI WKHLU UHSHUWRLUH RI
LQWHUQDO QHJRWLDWLRQV $OWKRXJK DOO WKH LQYROYHG XVH VWURQJ ZRUGV LW VHHPV
WR EH FOHDU WR DOO LQYROYHG WKDW WKH\ FDQ UHWUDFW WKHVH DW D ODWHU VWDJH ZLWK
RXW DQ\ SHUPDQHQW GDPDJH :KHQ WKH DUFK HQHPLHV WKH /LEHUDOV VKRZ
XS LQ WKH SROLWLFDO DUHQD WKH 6DQGLQLVWDV IRUJHW DOO DERXW WKHLU LQWHUQDO
GLVDJUHHPHQWV
$W WKH HQG RI WKH VDPH \HDU WKH JRYHUQPHQW ZLWKGUHZ WKH WUDQVSRUW
VXEVLG\ $W WKLV WLPH SULFHV KDG IDOOHQ FRQVLGHUDEO\ DQG WKH WUDQVSRUW
ZRUNHUV GLG QRW FRPSODLQ PXFK DERXW WKH UHLQVWLWXWLRQ RI PDUNHW JDV
SULFHV $OWKRXJK PDGH LQWR D 1LFDUDJXDQ HYHQW WKH WUDQVSRUW ZRUNHU
VWULNH ZDV XOWLPDWHO\ FDXVHG E\ IOXFWXDWLRQV LQ WKH LQWHUQDWLRQDO RLO PDU
NHWV 7KH IRFXV E\ DOO SDUWLHV LQYROYHG LQ WKH FRQIOLFW LV WKH SDUW WKDW SOD\HG
RXW LQ 1LFDUDJXD 3URWHVWV GLG QRW ODXQFK DJDLQVW LQWHUQDWLRQDO RLO FRPSD
QLHV EXW DJDLQVW WKH 6DQGLQLVWD JRYHUQPHQW

7KH 056 SURWHVWV 0D\ ² 1RYHPEHU 

7KH IROORZLQJ HSLVRGH VKRZHG PH KRZ DQ LQQHU1LFDUDJXDQ FRQIOLFW FRXOG
EH PDQLSXODWHG E\ WKH SDUOLDPHQWDU\ RSSRVLWLRQ WR 2UWHJD 6DDYHGUD LQ
D ZD\ WKDW FRXOG WXUQ LW LQWR DQ HYHQW ZLWK LQWHUQDWLRQDO FRQVHTXHQFHV
DQG KRZ WKH )6/1 LV D PRUH IUDFWXUHG DQG XQFRRUGLQDWHG JURXS ZKHQ LW
FRPHV WR SROLWLFDO DFWLRQ WKDQ WKH RSSRVLWLRQ SRUWUD\V WKHP
7KH 056 SURWHVWV 0D\ ² 1RYHPEHU  

7KH QH[W ZDYH RI SURWHVWV ZDV WKH DOOLDQFH 0RYLPLHQWR 5HQRYDGRU 6DQGL
QLVWD 056 ZKLFK VWDUWHG LQ ODWH 6SULQJ  7KH 056 KDG UHFHQWO\ ORVW
LWV OLFHQVH WR UXQ LQ HOHFWLRQV IRU WKH QH[W IHZ RI \HDUV EHFDXVH WKH\ GLG
QRW IXOILOO DOO WKH UHTXLUHPHQWV RI UHJLVWHULQJ DV D SDUW\ ODLG GRZQ E\ WKH 1L
FDUDJXDQ FRQVWLWXWLRQ DQG ODZV 6SHFLILFDOO\ WKH UXOHV UHTXLUH HDFK SDUW\
WR KDYH D UHJLVWHUHG OHDGHUVKLS LQ HDFK RI WKH  PXQLFLSDOLWLHV RI WKH
FRXQWU\ 7KH 056 ZDV QRW DEOH WR GR WKLV :KLOH WKH FRQVWLWXWLRQ DGRSWHG
GXULQJ 6DQGLQLVWDUXOH LQ WKH V SHUPLWWHG WKH FUHDWLRQ RI QHZ SDUWLHV
VXEVHTXHQW FKDQJHV GXULQJ WKH \HDUV RI /LEHUDO UXOH PDGH LW KDUGHU IRU
VPDOOHU SDUWLHV WR VXUYLYH 7KH 056 SUHYLRXVO\ ORVW LWV OLFHQVH WR UXQ GXH
WR WKH VDPH UHJXODWLRQV WKHUHIRUH EHWZHHQ  DQG  WKH\ UDQ LQ DQ
HOHFWRUDO XQLRQ ZLWK WKH )6/1 ,Q WKH SUHVLGHQWLDO HOHFWLRQV RI  WKH
056 RQFH DJDLQ UDQ E\ LWVHOI ,Q  WKH DXWKRULWLHV DXGLWHG WKH SDUW\
DJDLQ D PRYH ZKLFK WKH PHGLD SRUWUD\HG DV EHLQJ GLUHFWHG E\ WKH )6/1
ZLWK WKH DLP WR HOLPLQDWH D FRPSHWLWRU EHIRUH WKH PXQLFLSDO HOHFWLRQV RI
1RYHPEHU  $W WKH WLPH , WDXJKW (QJOLVK DW WKH 8QLYHUVLGDG 1DFLRQDO
$XWyQRPD GH 1LFDUDJXD²/HyQ 81$1²/HyQ  DQG RQH RI P\ VWXGHQWV 'RX
JODV $XJXVWR 9DUHOD 9LOFKH] ZDV RQH RI WKH PDLQ \RXWK DFWLYLVWV RI WKH
056 LQ WKH WRZQ , ZHQW WR 0DQDJXD WR D GHPRQVWUDWLRQ RQFH ZLWK KLP
DQG DQRWKHU WLPH ZLWK RWKHU 056 DFWLYLVWV 2QO\ D KDQGIXO RI WKH 056 DF
WLYLVWV VKRZHG XS DW WKH 056 KHDGTXDUWHUV LQ /HyQ GXULQJ WKH WLPH RI WKH
SURWHVWV 9DUHOD 9LOFKH] ZDV DPRQJ WKRVH ZKR GLG PRVW RI WKHLU DFWLYLWLHV
WKURXJK RWKHU RUJDQL]DWLRQV ZKLFK ZHUH DFFRUGLQJ WR KLP PRUH RU OHVV
GLUHFWO\ SDLG IRU E\ WKH 86 HPEDVV\
3DUW RI WKH 056 LQWHUQDO VSOLW KDG WR GR ZLWK DQRWKHU JURXS WKH 0RYLPL
HQWR SRU HO 5HVFDWH GHO 6DQGLQLVPR 0S56  D EUHDNDZD\ JURXS IURP WKH )6/1
WKDW MRLQHG WKH 056 DV ODWH DV WKH SUHVLGHQWLDO HOHFWLRQV RI  KDYLQJ
WDNHQ RYHU WKH /HyQ SDUW\ RIILFHV WR D GHJUHH ZKLFK PDGH RWKHU /HyQ 056
PHPEHUV IHHO XQFRPIRUWDEOH JRLQJ WKHUH ´7KH\ MXVW ZDQW WR JR EDFN DQG
WDNH RYHU WKH )6/1 ZKHUHDV ZH ZDQW QRWKLQJ WR GR ZLWK WKDW SDUW\µ RQH
RI WKH RULJLQDO 056 DFWLYLVWV H[SODLQHG WR PH
'XULQJ WKH SURWHVWV ² -XQH  RQH KLJK VWDQGLQJ PHPEHU WKH
IRUPHU )6/1 FRPDQGDQWH 'RUD 0DUtD 7pOOH] ZHQW RQ D KXQJHU VWULNH GXU
LQJ ZKLFK WLPH VKH VWD\HG LQ D WHQW DW WKH 5RWRQGD 0HWURFHQWUR LQ 0DQ
DJXD 7KLV LQLWLDWHG SURWHVW PDUFKHV WKURXJKRXW 0DQDJXD IRU WKH QH[W IHZ
PRQWKV 7R XQGHUVWDQG ZK\ WKH HYHQW DW WKH 5RWRQGD 0HWURFHQWUR ZDV VR
VLJQLILFDQW RQH QHHGV WR ORRN DW WKH SK\VLFDO VWUXFWXUH RI 0DQDJXD 7KH
URWRQGDV RI ZKLFK 0DQDJXD URXJKO\ KDV D GR]HQ ZHUH HVVHQWLDO LQ WKH
)RUPHU FRPDQGDQWH 'RUD 0DUtD 7pOOH] VLWWLQJ LQ D KDPPRFN RI WKH )UHQWH
6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 VWD\V LQ D WHQW DW WKH 5RWRQGD 0HWUR
FHQWUR LQ -XQH  GXULQJ KHU KXQJHU VWULNH DJDLQVW WKH GHFLVLRQ QRW WR OHW
KHU FXUUHQW SDUW\ WKH 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056  SDUWLFLSDWH LQ
WKH ORFDO HOHFWLRQV RI 

UHVLVWDQFH E\ 6DQGLQLVWDV DJDLQVW WKH /LEHUDO JRYHUQPHQWV LQ WKH ODVW \HDUV

RI /LEHUDO JRYHUQPHQWV ,W EHJDQ ZLWK WKH  SUHVLGHQWLDO FDPSDLJQ RI
-RVp $UQROGR $OHPiQ /DFD\R RI WKH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/& 
3UHVLGHQW RI 1LFDUDJXD ² ZKHQ DV SDUW RI KLV HOHFWRUDO FDPSDLJQ
KH HPSKDVL]HG WKDW LW ZDV KLP ZKR KDG RUGHUHG WKH FRQVWUXFWLRQ RI WKH
ILUVW URWRQGD ZKLOH PD\RU RI 0DQDJXD LQ WKH SUHFHGLQJ \HDUV 6LQFH WKDW
WLPH D IHZ PRUH URWRQGDV ZHUH EXLOW DQG SRVLWLRQHG VR ZKHQ WKH 6DQGLQ
LVWDV RFFXSLHG WKHP WKH\ FRXOG VWRS WUDIILF WKURXJK DOO PDMRU WKUXZD\V RI
0DQDJXD

:KHQ WKH 056 WRRN FRQWURO RI WKH URWRQGDV /LEHUDO DQG 056 IRUFHV
FRXOG PDUFK GXULQJ WKH VXPPHU RI  7KH )6/1 KDG QR PHDQV WR SUH
YHQW WKHP IURP GRLQJ VR 7KH PRVW VHYHUH FODVK EHWZHHQ )6/1 6DQGLQLVWDV
DQG WKH RWKHU JURXSV WRRN SODFH LQ /HyQ DQG QRW 0DQDJXD RQ  -XQH
 7KH 056 SODQQHG WR KDYH 7pOOH] VSHDN LQ D FHUWDLQ URRP RI WKH XQL
YHUVLW\ DQG WKDW VDPH GD\ VWXGHQWV GHFLGHG WR RFFXS\ WKDW SDUW RI WKH
XQLYHUVLW\ 7KH\ DOOHJHGO\ SURWHVWHG IRU WKH SD\RXW RI VWXGHQW VFKRODU
VKLSV , LQYHVWLJDWHG PRUH GXULQJ WKH IROORZLQJ ZHHNV DQG , FRQFOXGHG
WKDW WKH VWXGHQWV KDG VWDJHG WKH HYHQW LQ RUGHU WR SURKLELW 7pOOH] IURP
HQWHULQJ WKH XQLYHUVLW\ 2Q WKH GD\ RI WKH FRQIURQWDWLRQ VWXGHQWV WKUHZ
GLUW\ ZDWHU RQ 7pOOH] DQG D &RQVHUYDWLYH ZKR KDG ORVW KLV VHDW DV D PHPEHU


6DQGLQLVWDV FRQQHFWHG WR WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1
IUHTXHQWO\ RFFXS\ WKH 0DQDJXD URWRQGDV WKHUHE\ YLUWXDOO\ FRQWUROOLQJ WKH
FDSLWDO SK\VLFDOO\

RI WKH QDWLRQDO DVVHPEO\ ZKHQ LW ZDV SURYHQ WKDW KH LV D 86 FLWL]HQ DQG

WKHLU LGHRORJLFDO IROORZHUV , ZDV SUHVHQW DQG ILOPHG WKH HYHQW
7KH RIILFLDOV RI WKH &HQWUR 8QLYHUVLWDULR GH OD 8QLYHUVLGDG 1DFLRQDO²/HyQ
&881²/HyQ KDG RIILFLDOO\ RUJDQL]HG WKH VWXGHQW SURWHVW WKDW GD\ :KLOH
RIILFLDOO\ GHFODULQJ WKH\ ZHUH QRW 6DQGLQLVWDV P\ LQYHVWLJDWLRQ UHYHDOHG
WKH\ GHVFULEHG WKHPVHOYHV DV 6DQGLQLVWDV LQ DOO RWKHU FRQQHFWLRQV , DVNHG
RQH RI WKHLU OHDGHUV ZK\ WKHUH ZHUH VR PDQ\ SLFWXUHV RI $XJXVWR 1LFROiV
&DOGHUyQ 6DQGLQR LQ WKHLU KHDGTXDUWHUV LI WKH\ ZHUH QRW 6DQGLQLVWDV 7KH
H[SODQDWLRQ , UHFHLYHG IURP WKH VWXGHQW VHQW DV D UHSUHVHQWDWLYH RI WKH
RUJDQL]DWLRQ ZDV

:HOO \HV SHUVRQDOO\ , DP D 6DQGLQLVWD EXW ZH DV DQ RUJDQL

]DWLRQ UHSUHVHQW DOO WKH VWXGHQWV >&DOGHUyQ@ 6DQGLQR ZDV
D /LEHUDO ULJKW" 6R LW·V WKHLU SUREOHP LI WKH /LEHUDOV GRQ·W
LGHQWLI\ ZLWK KLP

,QWHUQDOO\ WKH PHPEHUV RI WKLV JURXS IURP WKH &881 FOHDUO\ VDZ WKHP
VHOYHV DV DFWLQJ RQ EHKDOI RI WKH )6/1 *LYHQ WKH 1LFDUDJXDQ FRQWH[W LW
GRHV QRW IROORZ WKDW WKH\ ZHUH FRQWUROOHG E\ WKH )6/1 :KHQ , ZHQW WR
)6/1 KHDGTXDUWHUV DQG DVNHG DERXW WKHLU RSLQLRQ RI WKH FRQIOLFW WKH\ VDLG
WKDW WKH VWXGHQWV OLNHO\ KDG JRWWHQ D ELW ´WRR H[FLWHGµ DQG ´YHU\ FUHDWLYHµ
ZKHQ WKURZLQJ WKH ZDWHU 0XFK DV ZLWK WKH WUDQVSRUW ZRUNHU VWULNH WKH\
GLG QRW FRQGHPQ WKH DFWLRQV RI VXFK 6DQGLQLVWD JURXSV \HW WKH\ PDGH
VXUH QRW WR HQGRUVH WKHP HLWKHU 7KH UHSUHVHQWDWLYHV RI WKH &881 ZKHQ


:KHQ 'RUD 0DUtD 7pOOH] FRPHV WR /HyQ WR VSHDN DW WKH XQLYHUVLW\ VWXGHQWV
WKURZ GLUW\ ZDWHU DW KHU ,Q WKLV SKRWR VKH DFFXVHV 3UHVLGHQW -RVp 'DQLHO
2UWHJD 6DDYHGUD RI EHLQJ EHKLQG WKH DFWLRQ

, WDONHG WR WKHP D IHZ GD\V ODWHU FODLPHG WKHLU UHSUHVHQWDWLYHV UXVKHG

RYHU WR WKH GHPRQVWUDWLRQ ZKHQ LW KDSSHQHG WR VWRS WKH ZDWHU WKURZLQJ
0\ YLGHR WDSHV VKRZHG WKDW RQFH WKH &881 3UHVLGHQW ZDV SUHVHQW DW WKH
VFHQH WKH ZDWHU WKURZLQJ VWRSSHG
0RUH UHYHDOLQJ ZHUH HYHQWV DERXW D ZHHN DIWHU WKLV FRQIURQWDWLRQ
$QRWKHU JURXS RI VWXGHQWV RFFXSLHG WKH SUHSDUDWRU\ VFKRRO RI WKH 81$1²
/HyQ 7KHUH KDG EHHQ VWXGHQW HOHFWLRQV DQG WKH RFFXS\LQJ VWXGHQWV KDG
IRUPHG D JURXS WKDW UDQ DJDLQVW WKH UHSUHVHQWDWLYHV HQGRUVHG E\ WKH &881
$FFRUGLQJ WR WKH RFFXSLHUV LW HQGHG ZLWK WKH &881 WDNLQJ WKH EDOORW ER[HV
E\ IRUFH DQG PRYLQJ WKHP WR WKHLU RZQ RIILFHV DQG WKHQ SURFODLPLQJ WKHP
VHOYHV WKH ZLQQHUV 7KH RFFXSLHUV FODLPHG WKH\ ZRQ 7KH\ PDGH D SRLQW
RI EHLQJ DJDLQVW WKH ZDWHU WKURZLQJ DFWLRQ WKDW KDSSHQHG D ZHHN HDUOLHU
,Q VSLWH RI WKHLU GLIIHUHQFHV WKH\ DOVR VDZ WKHPVHOYHV DV )6/1 6DQGLQ
LVWDV 'LIIHUHQW IURP WKH &881 WKH\ FODLPHG WKHPVHOYHV WR EH 6DQGLQLVWDV
RSHQO\ 2QH RI WKHP WROG PH ´/RRN ZH DUH DOO 6DQGLQLVWDV ² ERWK WKHP
DQG XV ² EXW ZH MXVW GRQ·W DJUHH ZLWK WKH IRUP RI ZKDW WKH\ GLG ODVW ZHHNµ
7KH\ FODLPHG LW ZDV ULGLFXORXV WKDW IRUPHUO\ WKH &RQVHUYDWLYH PHPEHU RI
WKH QDWLRQDO DVVHPEO\ ZDQWHG WR HQWHU WKH XQLYHUVLW\ ZKHQ XQGHU /LEHUDO
UXOH KH KDG WULHG WR FXW IXQGLQJ IRU XQLYHUVLWLHV 7KH\ ZHUH FHUWDLQ WKH
VWXGHQW DFWLRQ ZDV QRW SODQQHG E\ QRU FDUULHG RXW E\ DGXOWV RI WKH )6/1
7pOOH] VSRNH WR WKH PHGLD ZKLOH VWDQGLQJ FRYHUHG LQ GLUW RXWVLGH WKH
81$1²/HyQ ULJKW DIWHU VKH KDG EHHQ DWWDFNHG 6KH FODLPHG WKDW 2UWHJD
6DDYHGUD DQG $OHPiQ /DFD\R ZHUH EHKLQG WKH DFWLRQ DQG WKDW LW ZDV PHDQW


7KH 056 SURWHVWV 0D\ ² 1RYHPEHU  

WR VXSSUHVV GHPRFUDF\ $OO WKH 056 DFWLYLVWV , DVVRFLDWHG ZLWK DW WKH

WLPH FODLPHG WKH VWXGHQWV ZKR DWWDFNHG WKHP ZHUH PRUH RU OHVV GLUHFWO\
FRQWUROOHG E\ 2UWHJD 6DDYHGUD
:KHQ , UHOD\HG WR ¶WKH KRUVHPDQ· DQ 056 DFWLYLVW ZKDW WKH &881 DQG
WKH VHFRQG JURXS RI 6DQGLQLVWDV KDG WROG PH KH VDLG KH EHOLHYHG WKH VHFRQG
JURXS RI VWXGHQWV WR EH VHW XS E\ WKH )6/1 MXVW WR KLGH WKHLU WUDFHV LQ WKH
DFWLYLWLHV RQ WKH WK , EHOLHYH WKLV WR EH KLJKO\ XQOLNHO\ DV WKH\ RFFXSLHG
D XQLYHUVLW\ EXLOGLQJ IRU VHYHUDO GD\V DQG , ZDV WKH RQO\ MRXUQDOLVW DURXQG
WR ZLWQHVV WKHLU DFWLRQ
$QRWKHU SHUVRQ ZKR VKRZHG XS DW PDQ\ HYHQWV LQ /HyQ LQFOXGLQJ
WKH DWWDFN ZDV )UDQFLVFR $OHJUtD WKH RQO\ 1LFDUDJXDQ RZQHU RI D KRVWHO
LQ /HyQ +LV IDPLO\ KDV KLVWRULF WLHV WR WKH 6RPR]D UHJLPH ZKLOH KH RI
WHQ H[SODLQV WKDW KH LV LQ IDYRU RI VHHLQJ WKLQJV IURP ¶DOO SHUVSHFWLYHV·
:KHQHYHU FODVKHV RFFXU VRPHKRZ KH PDQDJHV WR EH SUHVHQW 7KLV WLPH
KH VWRRG DURXQG ZDWFKLQJ WKH FRQIURQWDWLRQ IURP D IHZ PHWHUV GLVWDQFH
$FFRUGLQJ WR KLP WKH DFWLRQV WKLV GD\ ZHUH PRVW OLNHO\ GLUHFWO\ FRQWUROOHG
E\ WKH )6/1 DQG ZDV GRQH WR WU\ WR KLQGHU ¶IUHH VSHHFK· $IWHUZDUGV KLV
SK\VLFDO SUHVHQFH ZDV HQRXJK IRU WKH 056 WR FRXQW KLP DV RQH RI WKHLU
VXSSRUWHUV
,Q WKLV FDVH RQH DJDLQ FDQ VHH KRZ WKH )6/1 SDUW\ GRHV QRW DFW DV RQH
EORFN FRQWUROOHG E\ RQH HQWLW\ EXW KRZ LW H[SUHVVHV PRUH RI D JHQHUDO
LGHRORJ\ 7KRVH ZKR SRUWUD\ WKH )6/1 DV EHLQJ EXLOW FOHDU DURXQG KLHUDU
FKLFDO FRPPDQG VWUXFWXUHV DUH WKRVH ZKR DUH QRW PHPEHUV RI WKH SDUW\
$OWKRXJK )6/1 SDUW\ OHDGHUV PRVW OLNHO\ ZHUH QRW UHVSRQVLEOH IRU WKH DF
WLRQV WKH\ VKLHG DZD\ IURP FULWLFL]LQJ VRPH RI ¶WKHLU RZQ· $QG DOWKRXJK
WKH 056 UDQ LQ HOHFWLRQV WRJHWKHU ZLWK WKH )6/1 IRU VHYHUDO \HDUV DIWHU
WKH \HDU  QRZ DOO FRPPRQDOLW\ ZDV VXGGHQO\ IRUJRWWHQ DQG HPSKDVLV
ZDV SXW RQ WKH DOOHJHG VKHDU OLPLWOHVVQHVV RI 2UWHJD 6DDYHGUD·V SRZHU WR
FRQWURO HDFK DQG HYHU\ DUP RI WKH 6DQGLQLVWD PRYHPHQW
$OWKRXJK WKH 056 DW RWKHU WLPHV KDG ODEHOHG LWVHOI DV WKH ¶WUXO\ 6DQGL
QLVWD SDUW\· WKH\ FKRVH WR OHW WKH )6/1 KDYH WKDW ODEHO DQG MRLQHG /LEHUDOV
DQG &RQVHUYDWLYHV XQGHU WKH EDQQHU RI ¶GHPRFUDF\· LQ WKH  HOHFWLRQV
6WDUWLQJ LQ 6HSWHPEHU  WKH 056 GHFLGHG WR SDUWLFLSDWH LQ WKH HOHFWLRQ
FDPSDLJQ RI WKH 3/& ,Q WKH VSULQJ RI WKH VDPH \HDU WKH 056 VWLOO KDG
FODLPHG WKDW WKH 3/& ZLWK LWV OHDGHU $OHPiQ /DFD\R KDG D SDFW ZLWK WKH
)6/1 WR VSOLW DOO VWDWH SRVLWLRQV RI SRZHU EHWZHHQ WKHP VHH DOVR ³ (O SDFWR
S  
,QVWHDG RI HQGRUVLQJ DQ\ RI WKH RWKHU SDUWLHV UXQQLQJ DJDLQVW WKH )6/1
(GXDUGR 0RQWHDOHJUH 5LYDV VSHDNV WR WKH VWXGHQWV RI WKH 8QLYHUVLGDG 7KRPDV
0RUH LQ 0DQDJXD LQ  OHIW  0RQWHDOHJUH 5LYDV EHORQJV WR RQH RI WZR
1LFDUDJXDQ ROLJDUFK IDPLOLHV DFFXVHG RI IUDXG E\ 6DQGLQLVWDV DQG RQH RI
WKH 1LFDUDJXDQ RSSRVLWLRQ·V PDLQ ILJXUHV +H ORVW WKH SUHVLGHQWLDO HOHFWLRQV
LQ  DQG WKH HOHFWLRQ IRU PD\RU RI 0DQDJXD LQ  +H RIWHQ FKDQJHV
SDUW\ PHPEHUVKLS³DOOHJHGO\ EHFDXVH 3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD
JDLQV FRQWURO RI DOO WKH SDUWLHV KH MRLQV +LV JRDO LV XQLILFDWLRQ DJDLQVW 2UWHJD
6DDYHGUD ,QVWHDG RI UXQQLQJ LQ WKH  SUHVLGHQWLDO HOHFWLRQV 0RQWHDOHJUH
5LYDV VXSSRUWV WKH FDQGLGDF\ RI WKH UDGLR VKRZ KRVW )DELR *DGHD 0DQWLOOD E
 ULJKW  ,Q RSLQLRQ SROOV KDOI D \HDU EHIRUH WKH HOHFWLRQ *DGHD 0DQWLOOD
KDV WKH VHFRQGPRVW VXSSRUW DIWHU 2UWHJD 6DDYHGUD WKRXJK ZLWK RQO\ D VOLP
FKDQFH RI ZLQQLQJ 3KRWRV 6LOYLR 7HUFHUR DQG -RUJH 0HMtD 3HUDOWD

WKH\ GHFLGHG WR HQGRUVH WKH 3/& DQG HVSHFLDOO\ WKH FDQGLGDWH IRU PD\RU
RI 0DQDJXD (GXDUGR 0RQWHDOHJUH 5LYDV 0RQWHDOHJUH 5LYDV ZDV WKH SUHV
LGHQWLDO FDQGLGDWH IRU WKH $OLDQ]D /LEHUDO 1LFDUDJHQVH $/1 LQ  EXW
VXEVHTXHQWO\ ORVW WKH VXSSRUW RI WKH $/1 OHDGHUVKLS 6LQFH WKHQ KH ZRUNHG
IRU D FDQGLGDWXUH RI KLV RZQ IRUPLQJ D JURXS NQRZQ DV ¶9DPRV FRQ (GXDUGR·
¶/HW·V JR ZLWK (GXDUGR· 9F( DQG DW WKH WLPH RI WKH  HOHFWLRQV $OHPiQ
/DFD\R RIIHUHG WR OHW KLP EH WKH FDQGLGDWH IRU PD\RU RI 0DQDJXD
7KH FRQWUDGLFWLRQ EHWZHHQ WKH DFFXVDWLRQV DJDLQVW WKH )6/1 DQG 3/&
RI SDFWLQJ DQG WKHQ DOO\LQJ RQHVHOI ZLWK RQH RI WKH SDUWV RI WKDW SDFW
ZDV D PRYH WKH 056 DOVR SHUIRUPHG DURXQG  ZKHQ WKH SDUW\ HQGHG
XS SDFWLQJ ZLWK WKH )6/1 IRU  \HDUV DIWHU KDYLQJ DFFXVHG WKH 3/& DQG
WKH )6/1 RI IRUPLQJ DQ DQWLGHPRFUDWLF DOOLDQFH )RQVHFD 7HUiQ H 
,QWHUQDWLRQDO QHZVSDSHUV GLG QRW WDNH QRWLFH DQG PRVW )6/1 6DQGLQLVWDV ,
VSRNH WR GLG QRW VHHP VXUSULVHG RI WKH UKHWRULFDO XWXUQ HLWKHU :LWK WLPH
, XQGHUVWRRG WKHUH ZDV D OHYHO RI G\QDPLVP LQ SROLWLFDO GLVFRXUVH , KDG QRW
EHHQ IDPLOLDU ZLWK LQ (XURSH


7KH  6DQGLQLVWD FDQGLGDWH IRU PD\RU RI /HyQ 0DQXHO &DOGHUyQ ZKLWH
VKLUW  LV RXW LQ WKH VWUHHWV ERWK RQ WKH GD\ WKH UHVXOWV DUH DQQRXQFHG DQG D
IHZ ZHHNV ODWHU ZKHQ /LEHUDOV DQG 6DQGLQLVWDV PDUFK VLPXOWDQHRXVO\ +H LV
QHYHU PRUH WKDQ D IHZ KXQGUHG PHWHUV IURP ZKHUH FODVKHV ZLWK /LEHUDOV
RFFXU

7KH 056 DQG 3/& WULHG WR SXW RQ SURWHVW PDUFKHV LQ 0DQDJXD XS

XQWLO WKH HOHFWLRQV ZKLOH WKHLU WULDO RI PDUFKLQJ LQ /HyQ HQGHG ZLWK )6/1
DFWLYLVWV FORVLQJ DOO HQWUDQFHV WR WKH FLW\ LQ JXHUULOOD ZDU VW\OH 7KH )6/1
FDQGLGDWH IRU PD\RU RI /HyQ 0DQXHO &DOGHUyQ ZDV SUHYLRXVO\ FKLHI RI
SROLFH DQG DSSDUHQWO\ WKRXJKW WKH SROLFH ZRXOG UHVSHFW KLV RUGHUV DQG QRW
LQWHUYHQH :KHQ WKH SROLFH GLG SXW WKHPVHOYHV LQEHWZHHQ 6DQGLQLVWDV
DQG /LEHUDOV WKH SKRWRJUDSKHU RI /D 3UHQVD PDQDJHG WR WDNH D SLFWXUH ZLWK
&DOGHUyQ DWWDFNLQJ D SROLFHPDQ ZLWK D VWLFN 7KH 056 WKHQ DWWDFNHG WKH
$/1 IRU EHLQJ FRQWUROOHG E\ WKH )6/1 7KLV DUJXPHQW ZDV DOVR UHIOHFWHG E\
ERWK $OHJUtD DQG 9DUHOD 9LOFKH] , FRQIURQWHG WKHP ZLWK WKH IDFW WKDW MXVW D
IHZ PRQWKV HDUOLHU WKH 056 FODLPHG VRPHWKLQJ VLPLODU DERXW WKH 3/& 7KH\
VDZ QR FRQWUDGLFWLRQ LQ WKLV $OHJUtD VDLG ´<HV ZHOO EXW 0RQWHDOHJUH
>5LYDV@ ORVW WKDW SDUW\µ
7KLV HYHQW RQFH PRUH VKRZV DQ DGYDQFHG DQG DW WLPHV FRQWUDGLFWRU\
OHYHO RI RUJDQL]LQJ LQ WKH )6/1 LQ D FRQIOLFW VHHPLQJO\ ZKROO\ LQWHUQDO WR
1LFDUDJXD 7KH RYHUDOO SLFWXUH RI WKH IUDFWLRXVQHVV RI )6/1 6DQGLQLVPR
PXVW EH NQRZQ WR DW OHDVW D VL]DEOH SDUW RI WKH 1LFDUDJXDQ PHGLD DQG DOO
WKRVH MRXUQDOLVWV ZKR LQWHUYLHZHG GLIIHUHQW UHSUHVHQWDWLYHV RI WKLV JURXS
7KH DOOLDQFH RI WKH 056 ZLWK WKH )6/1 RI WKH ODVW IHZ \HDUV SULRU WR WKH
 HOHFWLRQV FRXOG DOVR KDUGO\ KDYH EHHQ IRUJRWWHQ E\ DOO 1LFDUDJXDQV
LQ 
$OO WKLV SRLQWV WR WKH UHDO WDUJHW JURXS IRU WKH SURWHVWV WKH LQWHUQD
WLRQDO PHGLD ZKR LW LV PXFK PRUH UHDVRQDEOH WR DVVXPH KDYH KDG QR FOXH
RI WKH ORFDO FLUFXPVWDQFHV DQG GR QRW JUDVS WKH FRQWUDGLFWRU\ DVSHFWV RI
WKH YDULRXV VWDWHPHQWV RI WKH 056 7KH 056 DFWLYLVWV NQHZ WKDW WKHLU SDUW\


 6KDSLQJ SROLWLFV

GLG QRW VWDQG D FKDQFH LQ WKH 1LFDUDJXDQ GHEDWH RU DJDLQVW WKH YDULRXV
JURXSV RI )6/1 6DQGLQLVWDV ,Q UHDOLW\ WKH 056 VHHPV WR KDYH WULHG WR SXW
LQWHUQDWLRQDO SUHVVXUH RQ WKH 2UWHJD 6DDYHGUD JRYHUQPHQW WR FKDQJH WKH
FRXQWU\·V FRXUVH LQ D GLUHFWLRQ IDYRUDEOH WR WKHPVHOYHV

$ZDUG JLYHQ WR ODVW 0LQLVWHU RI (GXFDWLRQ RI (DVW

*HUPDQ\ DQG DOOLDQFH ZLWK +RQGXUDV  -XO\ 
7KH IROORZLQJ VKRZHG PH KRZ 6DQGLQLVWDV LQYRNH LQWHUQDWLRQDO UHODWLRQV
V\PEROLFDOO\ HYHQ WKRXJK WKLV PD\ PDNH OLWWOH VHQVH LQ JDLQLQJ DQ\ IRUHLJQ
DLG RU FRRSHUDWLRQ  -XO\  ZDV WKH GDWH RI WKH FHOHEUDWLRQ RI WKH WK
DQQLYHUVDU\ RI WKH 6DQGLQLVWD UHYROXWLRQ 7KH GD\ LV XVXDOO\ FHOHEUDWHG LQ
0DQDJXD E\ WKH )6/1 VXSSRUWHUV ZKR JDWKHU LQ WKH -RKQ 3DXO WKH 6HFRQG
SOD]D QHDU /DNH 0DQDJXD 7KLV \HDU WKH FHOHEUDWLRQV ZHUH SODQQHG ZLWK
PRUH LQWHUQDWLRQDO JXHVWV WKDQ XVXDO
7KH 056 DOVR SODQQHG FHOHEUDWLRQV ,Q SDVW \HDUV WKH\ KHOG WKHLU FHOH
EUDWLRQV LQ DOWHUQDWLQJ SODFHV DURXQG ZHVWHUQ 1LFDUDJXD 7KLV \HDU WKH\
KHOG WKHP LQ /HyQ LQ WKH SDUW RI WKH FLW\ FDOOHG 6XEWLDYD D VRPHZKDW
SRRUHU QHLJKERUKRRG ZLWK D SDUWO\ LQGLJHQRXV SRSXODWLRQ 7KH FHOHEUD
WLRQV ZHUH WR WDNH SODFH LQ /HyQ EHFDXVH WKH 056 DOOHJHGO\ KDG D ORW RI
VXSSRUW WKHUH , ORLWHUHG DURXQG WKH 056 RIILFH DW WKH WLPH , NQHZ WKH
056 GLG QRW WUXVW WKHLU ORFDO FKDSWHU LQ /HyQ ZLWK WKH SUHSDUDWLRQV DQG
WKDW WKH\ KDG VHQW SHRSOH IURP 0DQDJXD WR WDNH FDUH RI DOO SODQQLQJ HIIRUWV
)RU WKHP WKH FHOHEUDWLRQ RI WKH WK RI -XO\ ZDV MXVW DV PXFK D SURWHVW
DJDLQVW 2UWHJD 6DDYHGUD DQG WKH ORVV RI WKHLU OLFHQVH WR UXQ LQ HOHFWLRQV DV
LW ZDV D FRPPHPRUDWLRQ RI WKH UHYROXWLRQ WKH\ IRXJKW WRJHWKHU ZLWK WKH
)6/1 DQG RI ZKLFK WKH\ QRZ DW WLPHV EHOLHYH RQO\ WKHPVHOYHV WR EH WKH
WUXH UHSUHVHQWDWLYHV
0RVW LQWHUQDWLRQDO )6/1 JXHVWV FDPH IURP DOOLHG 6RXWK $PHULFDQ
FRXQWULHV 7KH WZR H[FHSWLRQV ZHUH -RVp 0DQXHO =HOD\D 5RVDOHV 3UHVL
GHQW RI +RQGXUDV WKH QHLJKERULQJ FRXQWU\ WR WKH QRUWK DQG WUDGLWLRQDOO\
QRW DQ DOO\ DQG 0DUJRW +RQHFNHU ODVW PLQLVWHU RI HGXFDWLRQ DQG ZLIH RI
WKH ODWH JHQHUDO VHFUHWDU\ RI WKH FHQWUDO FRPPLWWHH RI WKH 6R]LDOLVWLVFKH
(LQKHLWVSDUWHL 'HXWVFKODQGV 6(' 6RFLDOLVW 8QLW\ 3DUW\ RI *HUPDQ\ RI WKH
'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5 *HUPDQ 'HPRFUDWLF 5HSXEOLF 
=HOD\D 5RVDOHV GHFODUHG WKDW GD\ WKH +RQGXUDQ SHRSOH KDG ´DOZD\Vµ
IROORZHG WKH VRFLDO VWUXJJOHV RI WKHLU QHLJKERUV WR WKH VRXWK VLQFH WKH WLPH
/HIW WR ULJKW )LUVW /DG\ 5RVDULR 0XULOOR 3UHVLGHQW -RVp 'DQLHO 2UWHJD
6DDYHGUD 9HQH]XHODQ 3UHVLGHQW +XJR &KDYH] DQG +RQGXUDQ 3UHVLGHQW
-RVp 0DQXHO =HOD\D 5RVDOHV DW WKH FHOHEUDWLRQV RI WKH WK DQQLYHUVDU\ RI
WKH 6DQGLQLVWD UHYROXWLRQ YLFWRU\ RQ  -XO\ 

RI &DOGHUyQ 6DQGLQR +RQHFNHU ZDV SUHVHQW WR UHFHLYH WKH 5XEHQ 'DULR

PHGDO IRU WKH KHOS RI WKH ''5 LQ WKH OLWHUDF\ FDPSDLJQ RI WKH V =HOD\D
5RVDOHV ZDV QRW \HW UHDG\ WR VLJQ DQ\ FRQFUHWH DJUHHPHQW ZLWK 1LFDUDJXD
EXW KLV PHUH SUHVHQFH DQG ZKDW KH VDLG ZDV HQRXJK WR EH WKH WDON RI WKH
WRZQ 7KH FRQFUHWH VLJQLQJ RI YDULRXV WUHDWLHV FDPH EHWZHHQ WKDW GDWH
DQG  -XQH  ZKHQ KH ZDV GHSRVHG WKURXJK D PLOLWDU\ FRXS
7KH IDFW +RQHFNHU UHFHLYHG WKH PHGDO D VRPHZKDW PLQRU HYHQW QR
1LFDUDJXDQV , PHW VDZ DV FRQWURYHUVLDO FDXVHG KHDGOLQH QHZV LQ *HUPDQ\
+RQHFNHU KDG EHHQ DEVHQW IURP SXEOLF OLIH VLQFH KHU HVFDSH WR &KLOH WR
JHWKHU ZLWK KHU KXVEDQG LQ WKH HDUO\ V DQG LW FDPH DV VRPHZKDW RI D
VXUSULVH WKDW VKH UHDSSHDUHG LQ WKLV ZD\ *HUPDQ PHGLD KLJKOLJKWHG KHU
QLFNQDPH WKH ¶SXUSOH ZLWFK· D UHIHUHQFH WR KHU KDLUFRORU  DQG ZKDW KRU
ULEOH SROLFLHV WKH PHGLD EHOLHYHG VKH ZDV UHVSRQVLEOH IRU LQ (DVW *HUPDQ\
,Q 1LFDUDJXD QRW HYHU\ERG\ NQHZ ZKR VKH ZDV 7R ILQG TXDOLILHG RSLQLRQV
, ZHQW WR WKH )6/1 KHDGTXDUWHUV LQ /HyQ D IHZ GD\V DIWHU WKH FHUHPRQ\
KDG WDNHQ SODFH DQG DVNHG DERXW ZKDW WKH VLJQLILFDQFH RI WKH YLVLW ZDV
,QVWHDG RI SXWWLQJ PH LQ FRQWDFW ZLWK WKRVH JLYLQJ WKH RIILFLDO SDUW\ OLQH
WKH VHFUHWDU\ DVNHG HYHU\ERG\ ZDLWLQJ LQ OLQH WR H[SODLQ WKH PDWWHU WR
PH GLUHFWO\ 6KH KDG E\ QRZ VHHQ PH PDQ\ WLPHV DQG VHHPLQJO\ ZDV
QRW ZRUULHG DERXW ZKDW WKRVH ZDLWLQJ ZRXOG WHOO PH , WROG WKHP WKDW LQ
*HUPDQ\ UHDFWLRQV ZHUH UDWKHU QHJDWLYH 7KH VHFUHWDU\ ORRNHG VRPHZKDW
DQJU\ DW PH DQG WKHQ VDLG ´7KH HQWLUH *HUPDQ ZRUNLQJ FODVV VKRXOG EH
SURXG RI WKLV SUL]Hµ (YHU\ERG\ FKHHUHG
7KH 6DQGLQLVWDV , PHW DOO KDG UDWKHU SRVLWLYH YLHZV RI (DVW *HUPDQ\


7KH ODVW VRFLDOLVW PLQLVWHU RI HGXFDWLRQ RI (DVW *HUPDQ\ 0DUJRW +RQHFNHU
ULJKW  UHFHLYHV WKH 5XEHQ 'DULR PHGDO IURP 3UHVLGHQW -RVp 'DQLHO 2UWHJD
6DDYHGUD FHQWHU RQ  -XO\ 

LQ FRPSDULVRQ WR :HVW *HUPDQ\ ,Q WHUPV RI WHUPLQRORJ\ LW LV FRPPRQ

LQ 1LFDUDJXD WR VKRUWHQ WKH RIILFLDO WHUP IRU (DVW *HUPDQ\ ¶7KH *HUPDQ
'HPRFUDWLF 5HSXEOLF· WR ¶7KH 'HPRFUDWLF *HUPDQ\· DQG WR VKRUWHQ WKH
RIILFLDO WHUP IRU :HVW *HUPDQ\ ¶ 7KH )HGHUDO 5HSXEOLF RI *HUPDQ\· WR
¶7KH &DSLWDOLVW *HUPDQ\· ¶&DSLWDOLVW· KDV IRU WKHP D FOHDUO\ QHJDWLYH FRQ
QRWDWLRQ VR WKH WHUPV WKH\ XVH FOHDUO\ SRVLWLRQ WKH YDOXH WKH\ SODFH RQ
WKH WZR FRXQWULHV
2SHQO\ DOO\LQJ RQHVHOI ZLWK WKH IRUPHU PLQLVWHU RI HGXFDWLRQ RI D
QRQH[LVWHQW DQG LQ VRPH SDUWV RI WKH ZRUOG DOPRVW KDWHG FRXQWU\ FDQ
KDUGO\ KDYH EHHQ GRQH LQ RUGHU WR UHFHLYH PRUH HFRQRPLF DVVLVWDQFH RU
RWKHU SROLWLFDO VXSSRUW 7KLV ZDV LQ HIIHFW D PRYH KLJKO\ LQIOXHQFHG E\
WKH KLVWRULFDO SDVW RI 1LFDUDJXD DQG DQ XQGHUVWDQGLQJ RI LQWHUQDWLRQDO
UHODWLRQV RULJLQDWLQJ IURP LW 7KH UHODWLRQ WR +RQGXUDV PD\ WR D KLJKHU GH
JUHH EH UHOHYDQW WR 1LFDUDJXD WRGD\ \HW WKH UHLQWHUSUHWDWLRQ RI +RQGXUDQ
KLVWRU\ E\ =HOD\D 5RVDOHV KDUGO\ KHOSHG KLP JDLQ DQ\ VXSSRUW LQ +RQGXUDV
7KLV PXVW KDYH EHHQ DLPHG DW WKH 1LFDUDJXDQ DXGLHQFH %RWK DSSHDUDQFHV
VHHP WR KDYH FDXVHG SUREOHPV IRU WKH 1LFDUDJXDQ JRYHUQPHQW DQG LWV
DOOLHV DW DQ LQWHUQDWLRQDO OHYHO 7KH SRSXODU VXSSRUW IURP VHFWRUV RI 1L
FDUDJXDQ VRFLHW\ IRU WKHVH DSSHDUDQFHV PXVW KDYH EHHQ WKH PRVW FUXFLDO


7KH *HRUJLD FRQIOLFW 

IDFWRU ZKHQ WKH JRYHUQPHQW GHFLGHG WR LQYLWH WKHP $OWKRXJK WKH 056
ZDV DEOH WR RUJDQL]H DQ HYHQW LQ /HyQ LQ VSLWH RI WKHLU XQGLVFLSOLQHG ORFDO
SODQQLQJ LW HQGHG XS EHLQJ WKH )6/1 WKDW GUHZ WKH ODUJHVW FURZG

7KH *HRUJLD FRQIOLFW

7KH IROORZLQJ GHPRQVWUDWHV KRZ WKH 6DQGLQLVWD XQGHUVWDQGLQJ RI WKH LP
SRUWDQFH RI ZKDW KDSSHQV LQ 1LFDUDJXD KDV DQ LPSDFW LQ DQ LQWHUQDWLRQDO
FRQWH[W DQG DW WLPHV FDQ LPSDFW RQ WKH FRXQWU\·V SROLWLFV 7KH QH[W PDMRU
FRQIOLFW 1LFDUDJXD IRFXVHG XSRQ ZDV WKH FRQIOLFW EHWZHHQ *HRUJLD DQG 5XV
VLD RI $XJXVW  7ZR WHUULWRULHV RI *HRUJLD 6RXWK 2VVHWLD DQG $ENKD]LD
KDG QRW EHHQ XQGHU *HRUJLDQ JRYHUQPHQW FRQWURO VLQFH WKH HQG RI WKH
&ROG :DU &:  DQG WKH PDMRULW\ RI WKRVH OLYLQJ WKHUH ZHUH 5XVVLDQ FLWL]HQV
*HRUJLD DWWDFNHG 6RXWK 2VVHWLD LPPHGLDWHO\ DIWHU D MRLQW *HRUJLDQ86
PLOLWDU\ WUDLQLQJ H[HUFLVH :LNLOHDNV  &HQWUH IRU 5HVHDUFK RQ *OREDO
L]DWLRQ   7KH FRQIOLFW TXLFNO\ VSUHDG WR $ENKD]LD +DUGLQJ DQG 7UDQ
  $IWHU WKH LQLWLDO *HRUJLDQ DWWDFNV 5XVVLD UHWDOLDWHG DQG DIWHU VH
FXULQJ WKH DUHD FRQWLQXHG WR VHQG LWV JURXQG WURRSV IDU LQWR *HRUJLDQ
WHUULWRU\ $JHQFH )UDQFH3UHVVH   ,Q WKH HQG WKH WZR WHUULWRULHV GH
FODUHG WKHPVHOYHV LQGHSHQGHQW IURP *HRUJLD EXW QR FRXQWU\ RWKHU WKDQ
5XVVLD DFFHSWHG WKHLU LQGHSHQGHQFH /HY\  
,Q 1LFDUDJXD , LQLWLDOO\ IROORZHG WKH *HRUJLD FRQIOLFW WKURXJK (XUR
SHDQ ,QWHUQHW VRXUFHV 1LFDUDJXDQ SDSHUV FHUWDLQO\ GLG QRW PDNH WKLV WKHLU
PDLQ WKHPH DW WKH VWDUW RI WKH FRQIOLFW , ZURQJO\ DVVXPHG WKLV PDWWHU
ZRXOG QRW KDYH DQ\ LPSRUWDQFH IRU 1LFDUDJXDQV 6RPH GD\V LQWR WKH FRQ
IOLFW DW WKH 81$1²/HyQ , IROORZHG D OHFWXUH DERXW 1LFDUDJXDQ KLVWRU\ IRU
1LFDUDJXDQV ² SDUW RI D VHULHV KHDYLO\ FRQWUROOHG E\ 6DQGLQLVWDV ZKR WULHG
WR JLYH WKHLU VWXGHQWV D UHYROXWLRQDU\ SHUVSHFWLYH 7KH LVVXH RI *HRUJLD
ZDV GLVFXVVHG WKHUH 2QH RI WKH OHFWXUHUV UHSUHVHQWLQJ WKH SDUW\ OLQH XVHG
SDUW RI KLV OHFWXUH WR FULWLFL]H WKH 8QLWHG 6WDWHV DQG LWV UROH LQ WKH FRQIOLFW
RI VXSSRUWLQJ *HRUJLD 5XVVLD ZDV GHVFULEHG DV PHUHO\ EHLQJ UHVSRQVLEOH
IRU NHHSLQJ WKH SHDFH LQ WKH DUHD 1RERG\ VHHPHG WR GLVDJUHH 6KRUWO\
WKHUHDIWHU 1LFDUDJXD ZDV WKH VHFRQG FRXQWU\ LQ WKH ZRUOG WR RIILFLDOO\
UHFRJQL]H WKH LQGHSHQGHQFH RI WKHVH WZR WHUULWRULHV 1<7   :KHQ ,
GLVFXVVHG WKLV ZLWK 6DQGLQLVWD LQIRUPDQWV WKH\ DOO VHHPHG WR WKLQN WKLV
ZDV WKH PRVW QDWXUDO VWHS IRU 1LFDUDJXD WR WDNH
5XVVLD LV VHHQ XQXVXDOO\ IDYRUDEO\ DQG DQ\ IRUHLJQ LQWHUYHQWLRQ LQ
YROYLQJ WKH 8QLWHG 6WDWHV LV VHHQ DV QHJDWLYH E\ PRVW )6/1 6DQGLQLVWDV
 6KDSLQJ SROLWLFV

,QLWLDOO\ 1LFDUDJXD KDG QR VWDNH LQ WKLV HYHQW DQG QRQH RI 5XVVLD·V DO
OLHV LQLWLDOO\ UHFRJQL]HG WKH LQGHSHQGHQFH RI WKH WHUULWRULHV IURP *HRUJLD
7KXV LW LV RQO\ ORJLFDO WR DVVXPH WKH PRVW LPSRUWDQW UHDVRQ IRU WKH 1LFD
UDJXDQ JRYHUQPHQW·V DFWLRQV ZDV WKHLU RZQ SROLWLFDO RSLQLRQ DQG WKDW RI
WKH PDMRULW\ 6DQGLQLVWD SDUW RI WKH SRSXODWLRQ 7KH HYHQW OHG WR 1LFDUDJXD
UHQHZLQJ UHODWLRQV ZLWK 5XVVLD 7KLV LQFOXGHG VHYHUDO YLVLWV E\ WKH 5XVVLDQ
9LFH3UHVLGHQW D YLVLW RI WKH 5XVVLDQ QDY\ DQG WKH VLJQLQJ RI YDULRXV DLG
SDFNDJHV 2QH RI WKHVH LQFOXGHG D GRQDWLRQ RI  EXVHV 5,$ 1RYLVWL  
5XVVLD GRQDWHG WKHVH EXVHV GLUHFWO\ WR WKH )6/1 SDUW\ 3RWRVPH   ZKR
WKHQ VROG WKHP WR 0DQDJXD FRRSHUDWLYHV IRU  86' HDFK 0RUDOHV $
 
,W LV QRWLFHDEOH WKH KHOS ZDV VHQW WR WKH )6/1 LQVWHDG RI WKH 1LFDUDJXDQ
VWDWH , FDQ RQO\ VSHFXODWH WKDW WKLV VHWXS ZDV DUUDQJHG WR SUHYHQW WKH
/LEHUDOV IURP KDYLQJ DFFHVV WR WKH PRQH\ 2UWHJD 6DDYHGUD VDLG DV SDUW RI
D VSHHFK GXULQJ WKRVH GD\V WKDW 5XVVLD ZDV µLOOXPLQDWLQJ WKH SODQHWµ E\
VWUXJJOLQJ IRU µSHDFH DQG VRFLDO MXVWLFHµ DQG WKDW WKH 8QLWHG 6WDWHV µWXUQV
LWV PLOLWDU\ IRUFH DJDLQVW WKHVH LQ DQ DWWHPSW WR VKDWWHU WKHPµ 6LOYD  
7KHVH ZRUGV VHHP H[FHSWLRQDOO\ VKDUS DQG DV LI 2UWHJD 6DDYHGUD ZRXOG EH
VSHDNLQJ RI WKH 6RYLHW 8QLRQ RI WKH V UDWKHU WKDQ 5XVVLD LQ  ,Q P\
H[SHULHQFH 1LFDUDJXDQV XVH ¶5XVVLD· DQG ¶6RYLHW 8QLRQ· LQWHUFKDQJHDEO\
DQG 5XVVLD LV QRW VHHQ DV VRPHWKLQJ IXQGDPHQWDOO\ GLIIHUHQW IURP ZKDW
WKH 6RYLHW 8QLRQ XVHG WR EH 2UWHJD 6DDYHGUD·V VWDWHPHQW UHIOHFWV WKDW
7KH HQWLUH LQFLGHQW VKRZV WZR SRLQWV RI XQGHUVWDQGLQJ RI WKH ZRUOG RQ
WKH SDUW RI WKH 6DQGLQLVWDV 7KH\ VHH 1LFDUDJXD DV VLJQLILFDQW HQRXJK WR
SOD\ D UROH LQ LQFLGHQWV WKDW WDNH SDUW LQ (DVWHUQ (XURSH DQG WKH FRXQWU\
FDQ KDYH D SROLF\ LQGHSHQGHQW RI WKH 8QLWHG 6WDWHV :HVWHUQ (XURSH DQG
DOO WKH UHJLRQDO /DWLQ $PHULFDQ SRZHUV )XUWKHUPRUH DQ XQGHUVWDQGLQJ
RI WKH FRQWLQXDQFH RI 6RYLHW 8QLRQ DQG 5XVVLD LV XQLTXH WR 1LFDUDJXD
,W FDQ QRW EH GLVUHJDUGHG WKDW WKH VLWXDWLRQ VKRZV WKURXJK WKLV XQGHU
VWDQGLQJ WKH LQWHUQDWLRQDO FRPPXQLFDWLRQ RI WKLV 1LFDUDJXDQ SHUVSHFWLYH
RQ WKH HYHQWV GLG DOORZ IRU D VKLIW LQ WKH LQWHUQDWLRQDO SRVLWLRQLQJ RI WKH
1LFDUDJXDQ VWDWH LQ UHODWLRQ WR 5XVVLD DQG WKH 8QLWHG 6WDWHV :KLOH , LQL
WLDOO\ YLHZHG WKH 1LFDUDJXDQ LQWHUYHQWLRQ LQ WKH FRQIOLFW DV D SURGXFW RI
DQ LOOLQIRUPHG SLFWXUH RI WKH ZRUOG LQ ZKLFK 5XVVLD ZRXOG KHOS 1LFDUDJXD
DQG RWKHU FRXQWULHV LQ VLPLODU VLWXDWLRQV HVFDSH WKH GRPLQDWLRQ RI WKH
8QLWHG 6WDWHV , FDPH WR UHFRJQL]H WKH DSSOLFDWLRQ RI WKLV YLHZ LQ WKH IRUP
LQJ RI 1LFDUDJXDQ VWDWH SROLF\ OHG WR JHRSROLWLFDO UHDOLWLHV PRYLQJ FORVHU
WR WKH LQLWLDO 6DQGLQLVWD SHUVSHFWLYH
/HyQ )6/1 FDQGLGDWH IRU PD\RU FODVKHG ZLWK SROLFH 6HSWHPEHU  

/HyQ )6/1 FDQGLGDWH IRU PD\RU FODVKHG ZLWK SROLFH

6HSWHPEHU 
7R PH WKLV VKRZHG KRZ QRW RQO\ WKH DFWLRQV RI WKH JRYHUQPHQW EXW DOVR
JUDVVURRW DFWLYLVP LV EHOLHYHG WR EH D UHIOHFWLRQ RI ZRUOGZLGH HYHQWV RQ
WKH SDUW RI WKH 6DQGLQLVWDV $ PXFK WDONHGDERXW ¶FODVK· EHWZHHQ SROLFH
DQG )6/1 VXSSRUWHUV WRRN SODFH DV SDUW RI WKH HOHFWLRQ FDPSDLJQ LQ WKH IDOO
RI  , ZDV QRW LQ /HyQ RQ WKDW GD\ EXW WKH QH[W GD\ , VDZ D QXPEHU RI
SLFNXS WUXFNV ZLWK 6DQGLQLVWD IODJV GULYH XS DQG GRZQ VRPH RI WKH PDLQ
VWUHHWV , DVNHG LI , FRXOG MRLQ WKHP DQG ZDV DOORZHG WR VLW RQ WKH EDFN RI
RQH $ JLUO VLWWLQJ QH[W WR PH H[SODLQHG

6HH WKH SROLWLFDO ULJKW DW D ZRUOG OHYHO LV WU\LQJ WR KDOW WKH

UHYROXWLRQDU\ SURFHVV E\ DUUDQJLQJ WKHVH PDUFKHV +HUH LQ
1LFDUDJXD LW LV WKH /LEHUDOV ZKR WU\ WR WDNH /HyQ EHFDXVH LW
ZDV WKH ILUVW FDSLWDO RI WKH UHYROXWLRQ

$V ZH GURYH DURXQG LW WXUQHG RXW WR EH D YLFWRU\ SDUDGH ZLWK &DOGHUyQ RQ

WKH GD\ RI WKH FODVKHV SKRWRJUDSKHG KLWWLQJ D SROLFHPDQ DQG *ODG\V %iH]
D ORFDO )6/1 PHPEHU RI WKH QDWLRQDO DVVHPEO\ PRXQWHG RQ WKH EDFN RI
SLFNXS WUXFNV 7KH WUXFNV ZHQW WKURXJK VRPH RI WKH SRRUHU SDUWV RI /HyQ
FKHHUHG RQ E\ WKH PDVVHV 7KH HSLVRGH RI WKH SUHYLRXV GD\ DSSDUHQWO\
GLG QRW KXUW &DOGHUyQ·V LPDJLQH DV PXFK LQ /HyQ DV LQ 0DQDJXD DQG RWKHU
SODFHV
,Q /HyQ WKLV ZDV RQH RI VHYHUDO VXFK HYHQWV GXULQJ WKH QH[W IHZ
PRQWKV RI PDQ\ IRUFHIXO )6/1 PDUFKHV ZKLFK ORRNHG DV WKRXJK WKH OLEHU
DWLRQ IURP 6RPR]D·V IRUFHV ZDV UHOLYHG E\ WKRVH SDUWLFLSDWLQJ ,W LV WKH
RQO\ ORJLFDO H[SODQDWLRQ ZK\ WKH )6/1 ZKLOH LQ FRQWURO RI WKH JRYHUQPHQW
WKH SROLFH DQG WKH PLOLWDU\ WRRN WKH VWHS RI GLJJLQJ WUHQFKHV DQG FKDVLQJ
VPDOO JURXSV RI /LEHUDOV ZKHQ WKHVH ZDQWHG WR PDUFK LQ D FLW\ ZKHUH WKH
)6/1 KDG D FOHDU PDMRULW\
7KH LQFLGHQW RI WKH FODVKHV EHWZHHQ &DOGHUyQ DQG WKH SROLFHPDQ ZDV
QRWLFHG QDWLRQZLGH DQG PRVW RWKHU SODFHV LW ZDV QRW VHHQ DV SRVLWLYH
&DOGHUyQ VLQFH WKHQ KDG D UHSXWDWLRQ IRU QRW EHLQJ HTXLSSHG IRU WKH MRE
RI PD\RU 2XWVLGH RI /HyQ LW ZDV PDLQO\ WKH VFHQH RI WKDW GD\ WR ZKLFK
SHRSOH UHIHUUHG ZKHQ WDONLQJ DERXW KLP RYHU WKH QH[W \HDU RU VR ,Q /HyQ

 $ UHIHUHQFH WR WKH IDFW /HyQ ZDV OLEHUDWHG E\ WKH 6DQGLQLVWDV EHIRUH 0DQDJXD DQG
WKDW LW KDV DOZD\V KDG )6/1 FLW\ JRYHUQPHQWV VLQFH
 6KDSLQJ SROLWLFV

RWKHU UXPRUV DERXW KLP VHHPHG PRUH SURPLQHQW LQ JLYLQJ KLP DQ LPDJH
VXFK DV WKH UXPRU DFFRUGLQJ WR ZKLFK KH DOOHJHGO\ DWH DW D ILVK UHVWDXUDQW
ZLWKRXW VKRZLQJ WKH SURSHU PDQQHUV RI FOHDQLQJ KLV KDQGV DW D WLPH ZKHQ
KH ZDV PD\RU
7KH PDWWHU RI &DOGHUyQ·V FODVK VHHPHG UHOHYDQW WR PDQ\ 6DQGLQLVWDV
HVSHFLDOO\ LQ 0DQDJXD :KLOH WKHUH PD\ KDYH EHHQ D FHUWDLQ FODVV GLIIHU
HQFH EHWZHHQ WKRVH DSSURYLQJ DQG WKRVH JRLQJ DJDLQVW WKH DFWLRQV RI WKH
FDQGLGDWH IRU PD\RU ZLWK PLGGOHFODVV 1LFDUDJXDQV OHVV OLNHO\ WR VXSSRUW
KLV DWWDFN RQ WKH SROLFH DQ XQGHQLDEOH GLIIHUHQFH H[LVWHG EHWZHHQ /HyQ
DQG 0DQDJXD LQ WKH HYHQWV WKDW ZHUH WDNHQ DV IXQGDPHQWDO 0\ LQIRU
PDQWV LQ 0DQDJXD WDONHG DERXW WKH LQFLGHQW DV DQ LVRODWHG DFW E\ &DOGHUyQ
)RU WKH /HyQHVH SDUWLFLSDQWV RI WKH PDUFKHV WKH &DOGHUyQ LQFLGHQW VHHPHG
WR EH SDUW RI WKH PDUFKHV DJDLQVW WKH /LEHUDOV DQG ZDV QRW DWWULEXWHG PXFK
LPSRUWDQFH
1RRQH TXHVWLRQHG ZKHWKHU WKH FODVKHV EHWZHHQ /LEHUDOV DQG 6DQ
GLQLVWDV UHSUHVHQWHG DQ LQWHUQDWLRQDO WHQGHQF\ 7KH GLIIHUHQFH LQ XQGHU
VWDQGLQJ EHWZHHQ /HyQ DQG 0DQDJXD DQG PDQ\ RWKHU SODFHV PXVW EH
VRPHWKLQJ RI ZKLFK PDQ\ 6DQGLQLVWDV DUH DZDUH )URP WKDW WKH\ VKRXOG
KDYH EHHQ DEOH WR GHGXFW WKDW WKH SHUVSHFWLYH IURP RXWVLGH RI 1LFDUDJXD
ZRXOG EH HYHQ PRUH GLIIHUHQW \HW VRPHKRZ WKLV VHHPHG QRW WR KDYH EHHQ
GRQH

)6/1 ZRQ ORFDO HOHFWLRQV 1RYHPEHU 

1LFDUDJXDQ HOHFWLRQV DUH HYHQWV ZKLFK WDNH RQ VLJQLILFDQFH IRU ERWK /LE
HUDOV DQG 6DQGLQLVWDV WKDW JR EH\RQG HOHFWRUDO SROLWLFV DQG DUH VHHQ QRW
RQO\ DV D IRUPDO SURFHVV EXW DV D SDUW RI SRSXODU RUJDQL]DWLRQ 7KLV ZDV
DSSDUHQW GXULQJ WKH SUHSDUDWLRQV IRU WKH  PXQLFLSDO HOHFWLRQV DQG
LQ WKH UHDFWLRQV WR WKH UHVXOWV $OVR WKH HOHFWLRQV VKRZHG KRZ FHQWUDO
LQWHUQDWLRQDO UHODWLRQV DUH IRU 1LFDUDJXD ZKLOH 1LFDUDJXDQV DJDLQ SODFH
DJHQF\ RQ WKH 1LFDUDJXDQ VLGH
,QWHUQDWLRQDO REVHUYHUV IURP WKH (XURSHDQ 8QLRQ DQG WKH 8QLWHG
6WDWHV ZHUH QRW DOORZHG WR REVHUYH WKH HOHFWLRQV EXW YDULRXV /DWLQ $PHUL
FDQ FRXQWULHV GLG UHFHLYH REVHUYHU FUHGHQWLDOV 7KLV ZDV VRPHZKDW QHZ
DQG UHIOHFWHG WKH IDFW 6DQGLQLVWDV ZHUH LQ FKDUJH ,W DOVR FDXVHG WKH HOHF
WLRQ UHVXOWV WR EH TXHVWLRQHG E\ WKRVH H[FOXGHG IURP REVHUYLQJ ,W VHHPHG
MXVW DERXW HYHU\ERG\ UHPRWHO\ UHODWHG WR SROLWLFV ZDV VRPHKRZ LQYROYHG
LQ WKH HOHFWRUDO SURFHVV 2Q WKH GD\V EHIRUH WKH HOHFWLRQ , FLUFXODWHG ZLWK
)6/1 ZRQ ORFDO HOHFWLRQV 1RYHPEHU  

-DYLHU 'tD] D IRUPHU VWXGHQW RI PLQH LQ KLV ODWH V ZKR OLYHG LQ &LXGDG
6DQGLQR MXVW RXWVLGH RI 0DQDJXD RQ WKH URDG WR /HyQ 2Q WKH QLJKW EHIRUH
WKH HOHFWLRQV ZH YLVLWHG KLV PRWKHULQODZ 7KH IDPLO\ RI KLV PRWKHULQ
ODZ ZDV SUHSDULQJ IRRG IRU WKH )6/1 IDFWLRQ ZKLFK VDW DW WKH HOHFWLRQ
VWDWLRQV LQ D FHUWDLQ VHFWRU RI 0DQDJXD WKH QH[W GD\ ,QVWHDG RI RUJDQL]LQJ
IRRG IRU PHPEHUV RI DOO SDUWLHV ZKR VLW DW DQ HOHFWLRQ ERRWK WRJHWKHU WKH
IRRG SUHSDUDWLRQ LV GRQH SDUW\ E\ SDUW\ ,W LV MXVW RQH RI VHYHUDO HOHFWLRQ
UHODWHG DFWLYLWLHV ZKLFK LQYROYH WKH SXEOLF DQG LW UHLQIRUFHV WKH SHUVRQDO
DOOLDQFH RI WKH IRRG SUHSDUHU ZLWK WKH SDUW\
'tD] ZDV LQYROYHG LQ WKH -XYHQWXG 6DQGLQLVWD -6 LQ WKH V DQG VWXG
LHG LQ &XED LQ WKH ODWH V WR HDUO\ V 1RZ KH VDLG KH ZDV GLVDS
SRLQWHG E\ WKH PRYHPHQW ZLWKRXW VSHFLI\LQJ WKH RYHUDOO UHDVRQ 1HY
HUWKHOHVV KH VWLOO YRWHG IRU WKH )6/1 +H H[SODLQHG KLV YRWH ZDV SDUW RI
ZKDW LV SRSXODUO\ NQRZQ DV WKH ¶YRWR GXUR· KDUG YRWH ZKLFK UHIHUV WR
WKRVH ZKR ZLOO DOZD\V YRWH )6/1 QR PDWWHU KRZ PXFK WKH\ GLVDJUHH ZLWK
WKH GD\WRGD\ SROLWLFV RI WKH SDUW\ 1R HTXLYDOHQW WHUP H[LVWV IRU YRW
HUV RI RWKHU SDUWLHV 0DQXHO &RUHD RQH RI WKRVH ZKR ZHQW WR WKH FDGUH
VFKRRO :LOKHOP3LHFN LQ (DVW *HUPDQ\ DW DQRWKHU WLPH SUHVHQWHG WR PH
D FDWHJRU\ RI 6DQGLQLVWDV ZKLFK VHHPV WR FRYHU WKH VDPH JURXS DQG KH
H[SODLQHG WKH GLVWLQFWLRQ EHWZHHQ WKHP DQG RWKHU 6DQGLQLVWDV WKLV ZD\

7KHUH DUH WKRVH 6DQGLQLVWDV ZKR DUH 6DQGLQLVWDV EHFDXVH LW

LV ZKHUH WKH\ UHFHLYH VRPHWKLQJ 7KH\ ZLOO GDQFH WR WKH
WXQH RI ZKRHYHU IHHGV WKHP $QG WKHQ WKHUH DUH WKRVH RI
XV ZKR DUH 6DQGLQLVWDV RXW RI FRQYLFWLRQ :H ZLOO DOZD\V EH
6DQGLQLVWDV HYHQ WKRXJK ZH UHFRJQL]H WKDW WKH )UHQWH« WKH
XSSHU OHDGHUVKLS RI WKH )UHQWH FRPPLWV HUURUV

'XULQJ HOHFWLRQ GD\ 0DQDJXD UHPDLQHG FDOP DQG LQ WKH HDUO\ DIWHUQRRQ ,
VWRRG DW WKH 5RWRQGD 0HWURFHQWUR )6/1 6DQGLQLVWDV ZHUH DOUHDG\ SUHVHQW
EHIRUH SROOV FORVHG ZDYLQJ 1LFDUDJXDQ IODJV 2QFH HOHFWLRQ ERRWKV FORVHG
WKH\ H[FKDQJHG WKHLU IODJV IRU UHGDQGEODFN 6DQGLQLVWD IODJV $W WKLV WLPH
, MRLQHG RQH RI WKH -6 JDWKHULQJV D IHZ EORFNV DZD\ DQG HQFRXQWHUHG D
IULHQG 1LQID 3DWULFLD 5DPRV 5DPRV ZDV LQYROYHG LQ WKH VWXGHQW VHFWLRQ RI
WKH 6DQGLQLVWD PRYHPHQW IRU D SURORQJHG SHULRG DQG VKH KDG ZRUNHG DW
H[LW SROOV RQ HOHFWLRQ GD\ DQG DOUHDG\ NQHZ WKH )6/1 KDG ZRQ LQ 0DQDJXD
EHIRUH WKH RIILFLDO UHVXOWV ZHUH LQ 6KH LQWURGXFHG PH WR DQRWKHU W\SH RI
YRWHU WKH ¶YRWR RFXOWR· KLGGHQ YRWH  7KHVH DUH SHRSOH ZKR GR QRW WHOO
SROOVWHUV KRZ WKH\ YRWH 1LFDUDJXDQ SROOVWHUV FRXQW WKHP DV OLNHO\ YRWLQJ
 6KDSLQJ SROLWLFV

LQ IDYRU RI RQH RI WKH /LEHUDO SDUWLHV

7KH IRXU W\SHV RI YRWHUV SROOVWHUV RSHUDWH ZLWK DUH )6/1 YRWHUV ZKR
YRWH GXH WR WKH SROLWLFV RI WKH )6/1 )6/1 YRWHUV ZKR YRWH LQ VSLWH RI WKH
SROLWLFV RI WKH )6/1 ¶YRWR GXUR·  RSHQ /LEHUDO YRWHV DQG KLGGHQ /LEHUDO
YRWHV ¶YRWR RFXOWR·  7KLV LQGLFDWHV D YRWH LQ IDYRU RI WKH )6/1 VHHPV ¶PRUH
FRUUHFW· PRUDOO\ RU RWKHUZLVH WKDQ FDVWLQJ D /LEHUDO YRWH IRU 1LFDUDJXDQV
7KH )6/1 ZRQ WKH HOHFWLRQV RI 1RYHPEHU WK  RYHUZKHOPLQJO\
7KH )6/1 ZRQ  PD\RUV ZKLOH WKH 3/& ZRQ  DQG WKH $/1  PD\RUV
+XUWDGR   ,PPHGLDWHO\ DIWHU WKH SUHOLPLQDU\ UHVXOW EHFDPH NQRZQ
WKH RSSRVLWLRQ FULHG IRXO DQG FDOOHG IRU PDUFKHV , OLVWHQHG WR DOO VLGHV RI
WKH VWRU\ ,Q WKH HQG , PXVW DGPLW WKDW )RQVHFD 7HUiQ F ZDV ULJKW
LQ KLV DQDO\VLV WKDW DW OHDVW DW D IRUPDO OHYHO WKH HOHFWLRQV ZHUH OHJDOO\
DQG FRUUHFWO\ ZRQ E\ WKH )6/1 DV DOOHJDWLRQV RI HOHFWRUDO IUDXG FRXOG
QRW EH VXEVWDQWLDWHG (YHQ WKRXJK WKLV VHHPHG WR EH UHFRJQL]HG E\ PRVW
/LEHUDOV LW ZDV RI OLWWOH SUDFWLFDO LPSRUWDQFH WR WKHP $ SURWHVW DJDLQVW
D 6DQGLQLVWD YLFWRU\ IRU WKHP VHHPHG RQO\ QRUPDO 7KH /DWLQ $PHULFDQ
HOHFWLRQ REVHUYHUV DSSURYHG WKH HOHFWLRQ UHVXOWV 7KH &RQVHMR 6XSUHPR
(OHFWRUDO &6( OHDGHUVKLS DQG WKH WZR /LEHUDO UHSUHVHQWDWLYHV ZLWKLQ LW
DSSURYHG WKH UHVXOWV RI PRVW PDMRU FLWLHV ZKHUH WKH )6/1 ZRQ DFFRUGLQJ
WR WKHLU GDWD 7KH WZR /LEHUDO UHSUHVHQWDWLYHV ZHUH WKHQ FRQVHTXHQWO\
H[SHOOHG IURP WKH 3/&
7KH QH[W GD\V WKH /LEHUDOV LQ 0DQDJXD WULHG WR FDXVH KDYRF E\ SK\VL
FDOO\ DWWDFNLQJ 6DQGLQLVWD SRVLWLRQV 7KH\ PDQDJHG WR FDSWXUH D IHZ RI WKH
URWRQGDV EXW DV VRRQ DV 0RQWHDOHJUH 5LYDV FDOOHG RQH RI WKH URWRQGDV ¶OLE
HUDWHG WHUULWRU\· WKH 6DQGLQLVWD DFWLYLVWV WRRN LW EDFN LPPHGLDWHO\ )LJKWV
EURNH RXW DOO RYHU WKH FLW\ ZLWK VHYHUDO GHDG 6DQGLQLVWDV DQG IRU WKH QH[W
IHZ ZHHNV 2UWHJD 6DDYHGUD GLVDSSHDUHG IURP WKH SXEOLF VFHQH +H ZDV UH
SODFHG E\ WKH PHPEHUV RI WKH &6( ZKR VHHPHG WR OHDG WKH FRXQWU\ GXULQJ
WKLV SHULRG 0DUFKHV EURNH RXW HYHU\ZKHUH 7KH VWDWHPHQWV RI WKH &6(
PHPEHUV VSUHDG WKURXJK PDVV PHGLD DQG PRXWKWRPRXWK SURSDJDQGD
LQ D KLJKO\ SROLWLFL]HG DWPRVSKHUH
,Q PDQ\ FLWLHV OLNH /HyQ WKH 3/& DQG 056 FODLPHG WR EH WKH UHDO ZLQ
QHUV DQG RQO\ HOHFWRUDO IUDXG NHSW WKHP IURP WDNLQJ RYHU WKH FLW\ JRYHUQ
PHQW 2Q WKH GD\ RI WKHLU ILUVW DQQRXQFHG PDUFK LQ ZKLFK 0RQWHDOHJUH
5LYDV ZDV WR SDUWLFLSDWH )6/1 DFWLYLVWV EORFNHG WKH URDGV IURP 0DQDJXD
DQG D IHZ WKRXVDQG 6DQGLQLVWDV FKDVHG DERXW  /LEHUDOV ZKR PDQDJHG
WR DUULYH LQ /HyQ $PRQJ RWKHUV , PHW 6DQGLQLVWD IDUP ZRUNHUV IURP WKH
FRXQWU\VLGH ZKR KDG FRPH WR /HyQ WR ¶GHIHQG· WKH FLW\ DJDLQVW WKH /LEHUDOV
7KH 6DQGLQLVWD YLFWRU\ LQ WKH  PXQLFLSDO HOHFWLRQV LV FHOHEUDWHG DV LI LW
ZHUH SDUW RI DQRWKHU UHYROXWLRQDU\ LQVXUUHFWLRQ

:KHQ , DVNHG ZKDW ZDV WDNLQJ SODFH EHWZHHQ /LEHUDOV DQG 6DQGLQLVWDV
/LEHUDOV FODLPHG VWURQJO\ WKH\ KDG EHHQ UREEHG RI WKHLU YLFWRU\ ZKLOH
WKH 6DQGLQLVWDV FODLPHG WKHLU PDUFK ZDV D GHPRQVWUDWLRQ RI ¶\HW DQRWKHU
YLFWRU\· DQG WKH /LEHUDOV ZHUH WR EODPH IRU DOO YLROHQFH ZKLFK PD\ VWLOO
RFFXU
<RXQJ DQG ROG 6DQGLQLVWDV ZHUH LQ WKH VWUHHWV WKDW GD\ DQG ERWK
JURXSV VHHPHG PRVWO\ LQWHUHVWHG LQ WKH SK\VLFDO PDQLIHVWDWLRQ RI SROLWLFDO
GLIIHUHQFHV (YHQ WKH SROLFH ORRNHG YHU\ KDSS\ DQG GLG QRW DFWXDOO\ WU\
WR VWRS WKH 6DQGLQLVWDV IURP FKDVLQJ WKH /LEHUDOV 6RPH EORFNV IURP WKH
IURQW OLQH EHWZHHQ WKH WZR JURXSV RQH FRXOG VHH JURXSV RI \RXQJ 6DQGLQ
LVWDV VKRRW KRPHPDGH ILUHFUDFNHUDUPV DW SROLFH OLQHV ZKR ¶GHIHQGHG·
WKHPVHOYHV ZLWK VKLHOGV DV LI WKH\ ZHUH LQ D ZDU <HW EHKLQG WKH SROLFH
WKHUH ZHUH QR /LEHUDO PDUFKHUV 2QH SROLFHPDQ ILOPHG WKH FRQIURQWDWLRQ
ZLWK WKH \RXQJ 6DQGLQLVWDV ZLWK KLV PRELOH SKRQH 1R DWWHPSWV DW DUUHVWV
ZHUH PDGH ,W MXVW VHHPHG OLNH D SDUW RI DQ DFWLRQILOOHG KDSSHQLQJ IRU
ERWK SROLFH DQG DFWLYLVWV ZKLFK ERWK VLGHV VHHPHG WR HQMR\
$W ILUVW , ZDV DPD]HG WKH /LEHUDOV GDUHG PDUFK LQ /HyQ 7KH QXPEHU
RI SHRSOH WKH\ PDQDJHG WR DVVHPEOH VKRZHG TXLWH FOHDUO\ LW ZDV KLJKO\
XQOLNHO\ WKH\ FRXOG KDYH ZRQ LQ /HyQ ZKHUHDV RWKHU FLWLHV VXFK DV 0DVD\D
ZKHUH WKH )6/1 DOVR ZRQ EXW KDV PXFK OHVV VXSSRUW KLVWRULFDOO\ VSHDNLQJ
ZRXOG KDYH EHHQ HDVLHU WDUJHWV IRU FODLPLQJ YRWHU IUDXG $IWHU WDONLQJ ZLWK
WKH /LEHUDO FDQGLGDWH $ULHO 7HUiQ DQG VRPH RI WKH 056 SHRSOH , EHFDPH
DZDUH RI ZK\ WKHLU FRQIURQWDWLRQ ZLWK WKH 6DQGLQLVWDV LQ /HyQ ZDV VR


:KLOH D IHZ WKRXVDQG 6DQGLQLVWDV FKDVH XS WR  /LEHUDOV WKURXJK WKH
VWUHHWV RI /HyQ VRPH 6DQGLQLVWD VWXGHQWV ODXQFK PRUWDUV DW WKH RYHUZKHOP
LQJO\ 6DQGLQLVWD SROLFH QHDUE\ 1HLWKHU SROLFH QRU VWXGHQWV VHHP WR WDNH
VXFK SK\VLFDO FODVKHV VHULRXVO\ 1RQH RI WKH VWXGHQWV LQYROYHG LQ WKH VWUHHW
ILJKWV WKDW GD\ DUH DUUHVWHG

FUXFLDO IRU WKHP 7KH UHDVRQ IRU WKHLU PDUFK VHHPHG WR OLH RXWVLGH RI
1LFDUDJXD 0DQ\ UHSUHVHQWDWLYHV RI ZHVWHUQ FRXQWULHV PDGH FRPPHQWV
GXULQJ WKRVH GD\V WR WKH HIIHFW WKDW FKHDWLQJ DQG IUDXG KDG RFFXUUHG LQ
WKH HOHFWLRQV HYHQ WKRXJK QRQH RI WKHLU FRXQWULHV· REVHUYHUV KDG EHHQ
REVHUYLQJ WKH HOHFWLRQV +DG WKH 6DQGLQLVWDV DGGLWLRQDOO\ DWWDFNHG WKH
/LEHUDOV QRW ZLWK GHPRQVWUDWRUV EXW XVLQJ WKH SROLFH RU PLOLWDU\ ERWK
ILUPO\ LQ WKHLU FRQWURO LW ZRXOG KDYH UHFHLYHG KHDGOLQHV WKURXJKRXW WKH
8QLWHG 6WDWHV DQG (XURSH DQG FRXOG KDYH HQGHG LQ WKH IXQGLQJ RI DQRWKHU
&RQWUD ZDU 7KH RSSRVLWLRQ WULHG WR LQYROYH LQWHUQDWLRQDO SUHVVXUH DQG
DWWHPSWHG XVLQJ WKH WDFWLFV RI SRSXODU RUJDQL]LQJ WR WDNH FRQWURO WKH ZD\
WKH 6DQGLQLVWDV KDG 8OWLPDWHO\ WKH\ ZHUH XQVXFFHVVIXO LQ WKHLU DWWHPSW
)RU WKH 6DQGLQLVWDV WKH GD\ KHOG D GLIIHUHQW VLJQLILFDQFH &DOGHUyQ
H[SODLQHG LW ZHOO ZKHQ KH VSRQWDQHRXVO\ WULHG WR FRQQHFW WKH HYHQWV ZLWK
LWV KLVWRU\ DV D 6DQGLQLVWD VWURQJKROG ZKHQ , DVNHG KLP ZKDW KH WKRXJKW
DERXW WKH HYHQWV RI WKH GD\
:HOO WRGD\ ZDV D PRPHQWRXV YLFWRU\ IRU WKH SHRSOH RI /HyQ
DQG , ZRXOG VD\ IRU WKH SHRSOH RI 1LFDUDJXD /HyQ KDV VKRZQ
DOZD\V WR EH DEOH WR EULQJ YLFWRU\ WR 1LFDUDJXD %HFDXVH LQ
 WKH H[HFXWLRQ RI WKH W\UDQW 6RPR]D PHDQW WKH EHJLQ
QLQJ RI WKH HQG RI WKH GLFWDWRUVKLS $QG WKH WDNLQJ RI WKH IRUW
>RI /HyQ@ RQ  -XO\ >@ ILQLVKHG WKH GLFWDWRUVKLS DQG PDGH


$ULHO 7HUiQ WKH /LEHUDO FDQGLGDWH LQ WKH  HOHFWLRQV IRU PD\RU RI /HyQ
WDNHV HYHQ JUHDWHU ULVNV WKDQ KLV 6DQGLQLVWD FRXQWHUSDUW E\ UXQQLQJ DURXQG
/HyQ ZLWK WKH /LEHUDOV ² SODFLQJ KLPVHOI GLUHFWO\ LQ WKH PLGGOH RI WKH VWRQH
WKURZLQJ RQ WKH GD\ ZKHQ ERWK JURXSV PDUFK 2Q DQRWKHU RFFDVLRQ 7HUiQ
VKRZV XS DW D 6DQGLQLVWD PDUFK ZLWK D SRVWHU VD\LQJ ´7R VWHDO IURP WKH
SHRSOH LV WR VWHDO IURP *RGµ ² D UHIHUHQFH WR WKH 6DQGLQLVWD VORJDQ ´7R VHUYH
WKH SHRSOH LV WR VHUYH *RGµ 7HUiQ LV FKDVHG LQWR WKH /HyQ FDWKHGUDO ZKHUH
KH KLGHV XQWLO WKH 6DQGLQLVWDV KDYH JRQH

WKH HVWDEOLVKPHQW RI WKH JRYHUQPHQW RI 1LFDUDJXD³KHUH LQ

/HyQ³SRVVLEOH 7RGD\ ZLWK WKLV YLFWRU\ RYHU WKH >SROLWLFDO@
ULJKW RYHU WKH PRGHUQGD\ 6RPRFLVPR /HyQ JLYHV 1LFDUDJX
D WKH FKDQFH WR UHFRYHU WKH OHYHO RI VWDELOLW\ WKDW LV QHHGHG
WR ILJKW DQG RYHUFRPH SRYHUW\

, GLG QRW KHDU &DOGHUyQ·V VSHFLILF ZD\ RI FRQQHFWLQJ WKH HYHQW ZLWK KLVWRU\
DJDLQ IURP RWKHUV EXW WKH VDPH HYHQW ZDV H[SODLQHG WR PH LQ VHYHUDO
RWKHU ZD\V LQ WKH QH[W IHZ GD\V E\ YDULRXV /HyQ 6DQGLQLVWDV $QG HYHU\
WLPH LW ZDV SXW LQ D KLVWRULF FRQWH[W VRPHKRZ FRQQHFWLQJ LW WR  )RU
WKH \RXQJHU 6DQGLQLVWDV ZKR ZHUH QRW DOLYH LQ  DQG KDG QRW H[SHUL
HQFHG WKH V WKH HYHQW VHHPHG WR EH WKH FORVHVW WKH\ JRW WR KDYLQJ
SDUWLFLSDWHG LQ WKH UHYROXWLRQDU\ VWUXJJOH
,Q PXQLFLSDO HOHFWLRQV LW LV HVVHQWLDO WKDW HLWKHU ¶WKH\· RU ¶ZH· ZLQ
DQG QRW VR PXFK ZKLFK SDUWLFXODU FDQGLGDWH ZLQV 7KLV EHFDPH DSSDU
HQW WR PH D IHZ PRQWKV ODWHU ,Q WKHRU\ WKH FDQGLGDFLHV IRU PRVW WRS
SRVWV DUH LQGLYLGXDO LQ WKDW WKH HOHFWLRQV DUH VHW XS OLNH HOHFWLRQV LQ WKH
8QLWHG 6WDWHV ZKLFK DUH PRUH DERXW LQGLYLGXDO FDQGLGDWHV UDWKHU WKDQ D
SDUW\ <HW 1LFDUDJXDQV W\SLFDOO\ VHH WKH LPSRUWDQFH RI WKH FDQGLGDWH DV
VHFRQGDU\ WR KLV RU KHU SDUW\ DIILOLDWLRQ :KHQ LQ 0DQDJXD $OH[LV $UJHOOR
)6/1 ZDV HOHFWHG DQG WKH RSSRVLWLRQ IRXJKW LW WKHUH ZDV D JUHDW XSURDU


$IWHU WKH 6DQGLQLVWD YLFWRU\ LQ WKH  PXQLFLSDO HOHFWLRQV LQ 0DQDJXD
ULRWV EUHDN RXW :KHQ  RI D \HDU ODWHU WKH 6DQGLQLVWD PD\RU RI 0DQDJXD
ER[LQJ FKDPSLRQ $OH[LV $UJHOOR FRPPLWV VXLFLGH KH LV UHSODFHG E\ 'DLV\
7RUUHV 7KH FKDQJHRYHU LV XQLYHUVDOO\ DFFHSWHG 7RUUHV WHOOV PH WKDW VKH
EHOLHYHV *RG KDV D SODQ IRU HYHU\ERG\ DQG WKDW KLV SODQ IRU KHU ZDV WR SXW
KHU LQWR WKLV SRVLWLRQ

:KHQ $UJHOOR ZDV UHSODFHG E\ WKH )6/1 ZLWK 'DLV\ 7RUUHV )6/1 WKH
IROORZLQJ VXPPHU DIWHU KH FRPPLWWHG VXLFLGH RQ  -XO\  KDUGO\ DQ\
JUXPEOLQJ ZDV KHDUG HYHQ WKRXJK PDQ\ FRQVSLUDF\ WKHRULHV ZRXOG KDYH
LW WKDW 2UWHJD 6DDYHGUD ZDV EHKLQG WKH GHDWK 1RRQH VXJJHVWHG WKDW QHZ
HOHFWLRQV VKRXOG EH KHOG ZKLFK /LEHUDOV ZRXOG KDYH D FKDQFH RI ZLQQLQJ
6RPH RI WKH RWKHU )6/1 PD\RUV ZHUH H[FKDQJHG EHIRUH WKHLU WHUP HQGHG
LQ WKH IROORZLQJ \HDUV DQG ZKLOH DW WLPHV LW HQGHG ZLWK WZR GLIIHUHQW
IDFWLRQV ZLWKLQ WKH )6/1 VXSSRUWLQJ GLIIHUHQW FDQGLGDWHV DW QR WLPH ZDV
LW VXJJHVWHG KDYLQJ DQ RSHQ YRWH ZLWK SDUWLFLSDWLRQ RI DOO SDUWLHV WR GHFLGH
ZKR VKRXOG WDNH RYHU

3DUOLDPHQW VWRSSHG ZRUNLQJ 1RYHPEHU  ² )HEUX

DU\ 
)RU  PRQWKV EHWZHHQ WKH HOHFWLRQV LQ 1RYHPEHU XQWLO )HEUXDU\  WKH
FRXQWU\ ZDV UXOHG E\ SUHVLGHQWLDO GHFUHH 7KH /LEHUDOV LQLWLDOO\ GHFLGHG
WKH\ ZRXOG GHFODUH WKH PXQLFLSDO HOHFWLRQ UHVXOWV LQYDOLG WKURXJK WKH XVH
RI WKHLU SDUOLDPHQWDU\ PDMRULW\ 2UWHJD 6DDYHGUD H[SODLQHG WKDW WKLV ZDV
XQFRQVWLWXWLRQDO DQG WKDW KH ZRXOG ZULWH D SUHVLGHQWLDO GHFUHH DJDLQVW LW


3DUOLDPHQW VWRSSHG ZRUNLQJ 1RYHPEHU  ² )HEUXDU\  

)RU WKH QH[W IHZ PRQWKV D VWDQGRII HQVXHG EHWZHHQ /LEHUDOV DQG WKH )6/1
LQ ZKLFK QHLWKHU ZDV DEOH WR IRUP D PDMRULW\ LQ SDUOLDPHQW DQG QRWKLQJ
ZDV SDVVHG WKURXJK SDUOLDPHQW ZKLFK DFFRUGLQJ WR ERWK VLGHV OHG WR
IRUHLJQ KHOS WR EH FDQFHOHG GXH WR ODFN RI GHFLVLRQV E\ SDUOLDPHQW $ IHZ
PDUFKHV E\ /LEHUDOV DJDLQVW ZKDW WKH\ FODLPHG WR EH HOHFWRUDO IUDXG ZHUH
RUJDQL]HG DQG WKH )6/1 FRXQWHUHG WKHP ZLWK PDUFKHV DQG FHOHEUDWLRQV
LQ FRQQHFWLRQ ZLWK WKH  \HDU DQQLYHUVDU\ RI WKH  WULXPSK RI WKH
6DQGLQLVWD UHYROXWLRQ 1RQH RI WKHVH ODWHU PDUFKHV UHDFKHG WKH VL]H RI WKH
HDUOLHU PDUFKHV DW WKH HQG RI 
7KH FULVLV ZDV UHVROYHG ZKHQ /LEHUDOV YRWHG IRU WKH 6DQGLQLVWD SUR
SRVDO RI SDUOLDPHQWDU\ OHDGHUVKLS DQG D JURXS RI MXGJHV OLIWHG WKH KRXVH
DUUHVW RI WKHLU OHDGHU $OHPiQ /DFD\R 7KH 056 SHRSOH ZHUH TXLFN WR SRLQW
RXW WKLV SURYHG WKH H[LVWHQFH RI WKH SDFW EHWZHHQ $OHPiQ /DFD\R·V 3/& DQG
WKH )6/1 ,Q WKH PHDQ WLPH 0RQWHDOHJUH 5LYDV OHIW WKH 3/& DJDLQ DQG WULHG
WR HVWDEOLVK KLV RZQ JURXS WKH %DQFD 'HPRFUDWLFD %'  WR ZKLFK VHYHUDO RI
WKH 0DQDJXD FLW\ FRXQFLO PHPEHUV IROORZHG KLP 7KHQ 0RQWHDOHJUH 5LYDV
FKDQJHG KLV PLQG DQG DVNHG KLV IROORZHUV WR MRLQ WKH 3DUWLGR /LEHUDO ,QGH
SHQGLHQWH 3/,   XQWLO WKDW SDUW\ GHFLGHG WKH\ GLG QRW ZDQW 0RQWHDOHJUH
5LYDV EHFDXVH KH KDG WRR PDQ\ FRQQHFWLRQV WR WKH 6RPR]DV 7KH /LEHUDOV
WKHQ VWDUWHG WR VXEGLYLGH WKHPVHOYHV LQWR YDULRXV JURXSV WR WKH MR\ RI WKH
)6/1 6DQGLQLVWDV
7KH HSLVRGH VKRZHG WKDW DIWHU QRW EHLQJ DEOH WR PDNH DGYDQFHV LQ WKH
SRSXODU DUHQD WKH RSSRVLWLRQ ZDV IRU RQFH DEOH WR XQLWH DQG SUHVVXUH WKH
JRYHUQPHQW DW SDUOLDPHQWDU\ OHYHO $OVR WKH )6/1 ZDV XQDEOH WR FRXQWHU
WKLV ZLWK DQ\ IRUP RI SRSXODU RUJDQL]LQJ WR IRUFH WKH RSSRVLWLRQ LQWR
DFFHSWLQJ WKH UHVXOW $W D JHQHUDO OHYHO RQH FDQ VD\ DW WLPHV WKH )6/1 LV
ZLOOLQJ WR JLYH LQ WR PRUH RU OHVV FRUUXSW GHDOV LI LW JLYHV WKHP PRUH SRZHU
'LIIHUHQW IURP PRVW RWKHU DFWLRQV ZKLFK LQFOXGHG SRSXODU RUJDQL]LQJ LQ
VRPH ZD\ RU RWKHU WKH GHDO ZLWK $OHPiQ /DFD\R ZDV DOPRVW XQLYHUVDOO\
FULWLFL]HG E\ DOO 6DQGLQLVWDV <HW IHZ RI WKHP VDZ DQ\ RWKHU VROXWLRQ
WR WKH FULVLV LQ WKH FRXQWU\ DQG XOWLPDWHO\ WKH\ DFFHSWHG WKH DFWLRQV RI
2UWHJD 6DDYHGUD DV QHFHVVDU\ 7KH LVVXH WKH\ VHHPHG WR KDYH ZLWK LW ZDV
PDLQO\ WKDW D FULWLFDO GHFLVLRQ ZDV PDGH ZLWKRXW LQYROYLQJ HYHQWV RI PDVV
SRSXODU SDUWLFLSDWLRQ DV WKDW LV ZKDW XVXDOO\ JLYHV OHJLWLPDF\ WR 6DQGLQLVWD
LQLWLDWHG SURMHFWV

 7KH 3/, ZDV D SDUW\ EHOLHYHG GHDG E\ PRVW 1LFDUDJXDQV WR ZKRP , VSRNH
 6KDSLQJ SROLWLFV

0LOLWDU\ FRXS LQ +RQGXUDV -XQH 

7KH PRVW GLUHFW ZD\ 1LFDUDJXD SROLWLFV ZHUH LQIOXHQFHG E\ WKH LQWHUQD
WLRQDO VFHQH GXULQJ WKLV SHULRG EHVLGHV WKH FXWWLQJ RI DLG ZDV ZKHQ WKH
PLOLWDU\ FRXS LQ WKH QRUWKHUQ QHLJKERU RI +RQGXUDV WRRN SODFH 6LQFH WKH
DSSHDUDQFH RI 3UHVLGHQW =HOD\D 5RVDOHV RQ  -XO\  LQ 0DQDJXD +RQ
GXUDV MRLQHG WZR DOOLDQFH DJUHHPHQWV WR ZKLFK 1LFDUDJXD DOVR VXEVFULEHG
WKH SROLWLFDO DOOLDQFHWUDGH QHWZRUN $OWHUQDWLYD %ROLYDULDQD SDUD ORV SXHEORV
GH QXHVWUD $PpULFDV $/%$ DQG WKH &DULEEHDQ DOOLDQFH WR EX\ RLO IURP 9HQH
]XHOD FDOOHG 3HWURFDULEH +RQGXUDV WKHQ H[SHULHQFHG D PLOLWDU\ FRXS RQ 
-XQH  WKH GD\ ZKHQ 3UHVLGHQW =HOD\D 5RVDOHV SODQQHG RQ KROGLQJ D UHI
HUHQGXP RQ ZKHWKHU WKH SHRSOH ZDQWHG WR KROG D FRQVWLWXWLRQ DVVHPEO\
WR FKDQJH VRPH RI WKH ODQG ULJKWV DQG RSHQ XS IRU LQVWLWXWLRQV RI GLUHFW
GHPRFUDF\ VXFK DV WKH &RQVHMRV GH 3RGHU &LXGDGDQR &3& LQ 1LFDUDJXD
,Q 1LFDUDJXD WKH UHDFWLRQV WR WKH FRXS IROORZHG WKH FODVVLF GLYLGH
)6/1 YV WKH /LEHUDO SDUWLHV 2Q RQH VLGH WKH /LEHUDOV GHFLGHG WKDW WKH\
ZDQWHG WR PDUFK LQ IDYRU RI WKH FRXS 7KH 056 SDUOLDPHQWDU\ JURXS KDG
DW WKLV WLPH VSOLW ZLWK WZR RI IRXU PHPEHUV OHDYLQJ 0RVW LPSRUWDQWO\
WKH 0RYLPLHQWR SRU HO 5HVFDWH GHO 6DQGLQLVPR 0S56 DQG WKHLU PHPEHU RI
WKH QDWLRQDO DVVHPEO\ OHIW WKH 056 FULWLFL]LQJ WKH 056 IRU KHOSLQJ DQ
HOHFWRUDO FDPSDLJQ LQ (O 6DOYDGRU DJDLQVW WKH )UHQWH )DUDEXQGR 0DUWt SDUD
OD /LEHUDFLyQ 1DFLRQDO )0/1  7KH 056 OHIWOHDQLQJ HOHPHQWV H[LWHG DQG
WKH UHVW RI WKH SDUW\ GLG QRW REMHFW WR WKH SURWHVWV LQ IDYRU RI WKH FRXS LQ
+RQGXUDV
$W WKH WLPH , DVVRFLDWHG ZLWK \RXQJHU )6/1 SDUW\ DFWLYLVWV LQ 1LFDUD
JXD (ULFN 6DXO 5LRV -XDUH] D  \HDU ROG 6DQGLQLVWD UDGLR VKRZ KRVW DQG
DFWLYLVW VSHQW PDQ\ GD\V RFFXS\LQJ WKH URWRQGDV WR SUHYHQW WKH SROLWL
FDO ULJKW IURP VKRZLQJ WKHLU VROLGDULW\ ZLWK WKH +RQGXUDQ FRXS PDNHUV
6DQGLQLVWDV LQ WKH ERUGHU UHJLRQ ZLWK +RQGXUDV ZURWH SURWHVW VRQJV DQG
KRXVHG VRPH RI WKH +RQGXUDQ H[LOHV IROORZLQJ WKH FRXS , YLVLWHG WKH 6DQ
GLQLVWDV LQ WKH ERUGHU WRZQ RI 2FRWDO LQ HDUO\ $XJXVW  7KH\ PDGH WKH
SRLQW WKDW WKH\ GLG QRW KHOS WKH +RQGXUDQV RUJDQL]H D UHYROXWLRQ DJDLQVW
WKH FRXS ´7KDW KDV WR EH WKH ZRUN RI WKH +RQGXUDQV WKHPVHOYHVµ WKH PDQ
LQ FKDUJH RI WKH )6/1 RIILFH H[SODLQHG WR PH ´2XU KHOS LV KXPDQLWDULDQ
PRUH WKDQ DQ\WKLQJµ 7KH WKHPH RI 1LFDUDJXDQV SODQQLQJ D UHYROXWLRQ
LQ +RQGXUDV ZDV H[WUHPHO\ FRPPRQ LQ FRQYHUVDWLRQ GXULQJ WKRVH GD\V
$OO WKH 6DQGLQLVWDV , PHW DJUHHG WKDW D UHYROXWLRQ ZDV WKH VROXWLRQ IRU
+RQGXUDV QRZ DQG PDQ\ RI WKHP ZHUH LQWHUHVWHG LQ KHOSLQJ +RQGXUDV WR
 \HDUV RI UHYROXWLRQ DQG VRPH DGYDQFHV VXPPHU  

GR VR 2QH RI WKH +RQGXUDQ \RXWK RUJDQL]HUV VKRZHG XS LQ 1LFDUDJXD DQG

ZHQW RQ 5LRV -XDUH]·V VKRZ ´7KLV JX\ VXGGHQO\ VDLG WKDW ¶=HOD\D >5RVDOHV@
LV QRW WKH ULJKW SHUVRQ WR OHDG WKLVµ· 5LRV -XDUH] WROG PH DIWHU , FDPH EDFN
IURP D WULS WR +RQGXUDV ZKHUH , PHW WKH VDPH \RXQJVWHU 5LRV -XDUH] ZDV
KHVLWDQW LQ JLYLQJ PH WKH FRQWDFW GHWDLOV DQG WKH SDUW\ XOWLPDWHO\ GHFLGHG
DJDLQVW SURYLGLQJ WKHP ,W ZDV E\ FRLQFLGHQFH , PHW WKH VDPH IHOORZ $OVR
WKLV HSLVRGH GHPRQVWUDWHG WKH 1LFDUDJXDQ XQGHUVWDQGLQJ WKDW SRSXODU
PRELOL]DWLRQ LV HVVHQWLDO LQ GD\WRGD\ SROLWLFV (YHQ WKH /LEHUDOV ZKR
E\ WKHQ KDG PDQDJHG WR EXLOG XS VRPH UHVSHFW LQWHUQDWLRQDOO\ WKURXJK
WKH HOHFWLRQV WKH\ VXSSRVHGO\ ZRQ EHOLHYHG WKH\ QHHGHG WR PDUFK HYHQ
WKRXJK QR JRYHUQPHQW LQ WKH ZRUOG RIILFLDOO\ ZDV LQ IDYRU RI WKH FRXS ,I
LQWHUQDWLRQDO PHGLD ZHUH WR IRFXV RQ WKHLU PDUFKHV WKH\ ZRXOG ORVH DOO
WKH FUHGLELOLW\ WKH\ KDG EXLOW )RU 6DQGLQLVWDV WKH FRXS PDUNHG D GLIIL
FXOW WLPH DQG IURP VRPH RI WKH FRPPHQWV , KHDUG WKHUH VHHPHG WR EH D
IHDU KLJKHU XS LQ WKH SDUW\ WKDW LQGLYLGXDO 6DQGLQLVWD JURXSV ZRXOG WU\
WR RUJDQL]H D UHYROXWLRQDU\ HIIRUW LQ +RQGXUDV GLVUHJDUGLQJ WKH UROH RI
+RQGXUDQ DFWLYLVWV ZKR IRXJKW LQ WKH UHVLVWDQFH DJDLQVW WKH FRXS

 \HDUV RI UHYROXWLRQ DQG VRPH DGYDQFHV VXPPHU


2Q  -XO\  WKH WK DQQLYHUVDU\ RI WKH UHYROXWLRQ ZDV FHOHEUDWHG
<HW LQVWHDG RI VD\LQJ ¶ \HDUV VLQFH WKH LQVXUUHFWLRQ· P\ 6DQGLQLVWD LQIRU
PDQWV LQVLVWHG RQ FDOOLQJ LW ¶WKH WK \HDU RI WKH UHYROXWLRQ· 7KH GLUHFWRU
RI WKH 2ILFLQD GH eWLFD 3~EOLFD 2(3 H[SODLQHG ´:HOO GXULQJ WKRVH  \HDUV
ZH GLG QRW VWRS :H MXVW SUHSDUHG RXUVHOYHV IRU WKLV SKDVH RI WKH UHYROX
WLRQµ +HU OLIH VHHPV WR FRQILUP WKDW ,W LV UHPDUNDEO\ VLPLODU WR WKH OLIH
VWRULHV RI PDQ\ RWKHU 6DQGLQLVWDV , LQWHUYLHZHG GXULQJ WKH HDUO\ \HDUV RI
/LEHUDO JRYHUQPHQWV VKH VWXGLHG IRU D KLJKHU GHJUHH DV D ODZ\HU DQG WKHQ
VSHQW WKH ODVW IHZ \HDUV ZRUNLQJ RQ WKH 1*2OHYHO
([WHQGLQJ HGXFDWLRQ OHYHOV KDV DOVR EHHQ D SULRULW\ RI WKH QHZ 6DQ
GLQLVWD JRYHUQPHQW ,Q $XJXVW  LQ WKH PLGGOH RI WKH ILQDQFLDO FULVLV
WKH )6/1 GHFODUHG D VXFFHVV LQ UHGXFLQJ LOOLWHUDF\ IURP  WR 

 7KH ILJXUH  LV TXRWHG LQ DOO QHZV VWRULHV DERXW WKH HYHQW ,Q P\ RZQ FDOFXODWLRQ
XVLQJ WKH EDVH QXPEHUV IURP 3DJXDJD   , DUULYH DW  ZKLFK LV WKH ILJXUH XVHG LQ
WKH JUDSK
 7KH ILJXUH  ZDV ZLGHO\ GLVVHPLQDWHG $VNLQJ 6DQGLQLVWDV DW WKH WLPH LW ZDV
 $GXOW LOOLWHUDF\ UDWH

50

40

30


20

10

0
1980 1985 1990 1995 2000 2005 2010
,OOLWHUDWH 1LFDUDJXDQV ROGHU WKDQ DJH 
,OOLWHUDWH 1LFDUDJXDQV EHWZHHQ DJH  DQG 
7KH OLWHUDF\ FDPSDLJQ LV RQH DUHD LQ ZKLFK D PDUNHG GLIIHUHQFH FDQ EH VHHQ
EHWZHHQ 6DQGLQLVWD DQG QRQ6DQGLQLVWD JRYHUQPHQWV 7KH ODWHVW FDPSDLJQ
KDG DOUHDG\ VWDUWHG LQ  DW D UHJLRQDO OHYHO LQ PXQLFLSDOLWLHV ZKHUH 6DQ
GLQLVWDV ZHUH LQ FKDUJH ,Q ² LW ZDV FDUULHG RXW DW D QDWLRQDO OHYHO
7KH  ILJXUH LV DQ HVWLPDWH E\ WKH 1LFDUDJXDQ JRYHUQPHQW 7KH  ILJXUH
LV EDVHG RQ VXUYH\ UHVXOWV DQG WKH  ILJXUH ZDV FDOFXODWHG E\ WDNLQJ WKH 
ILJXUH DQG VXEWUDFWLQJ WKH DPRXQW RI SHRSOH ZKR KDG JRQH WKURXJK WKH OLWHUDF\
SURJUDP LQ WKDW \HDU 7KH H[DFW PHDQLQJ RI ¶LOOLWHUDWH· LV QRW VSHFLILHG IRU DQ\
RI WKH ILJXUHV 6RXUFH $UULHQ   3DJXDJD   0,1('   +DQHPDQQ



&RQFOXGLQJ UHPDUNV 

ZLWK WKH OLWHUDF\ FDPSDLJQ LW VWDUWHG LQ  7KH ILJXUH ZDV DSSURYHG
E\ WKH 8QLWHG 1DWLRQV (GXFDWLRQ 6FLHQFH DQG &XOWXUH 2UJDQL]DWLRQ 81(6&2
1LFDUDJXD 1HWZRUN D  7KH JRYHUQPHQW DOVR FHOHEUDWHG WKH VWDUW RI
D K\GURHOHFWULF HQHUJ\ SURJUDP WKDW RQH GD\ ZLOO JHQHUDWH  RI DOO
HOHFWULFLW\ SURGXFHG E\ WKH 7XPDULQ +\GURHOHFWULF 3URMHFW RQ WKH 5LR *UDQGH
GH 0DWDJDOSD :LWK FRRSHUDWLRQ IURP WKH LQWHUQDWLRQDO FRPSDQ\ (ROR 6$
DQG WKH LQWHUQDWLRQDO FRQVRUWLXP $PD\R 6$ WKH JRYHUQPHQW EXLOW ZLQG
IDUPV VFKHGXOHG WR SURGXFH DQRWKHU  RI 1LFDUDJXDQ HQHUJ\ QHHGV
1LFDUDJXD 1HWZRUN E 
7KH JRYHUQPHQW PDGH JDLQV LQ RWKHU DUHDV DW WKLV WLPH 6RPH RI WKHP
VXFK DV WKH OLWHUDF\ SURJUDP LQYROYHG D ODUJH DPRXQW RI SRSXODU SDU
WLFLSDWLRQ ZKLOH RWKHUV ZHUH KLJKO\ WHFKQLFDO DQG ZRXOG UHTXLUH PRUH
FROODERUDWLRQ DPRQJ KLJKO\ VNLOOHG SURIHVVLRQDOV $OO WKHVH SURMHFWV KDG
DV D VWDWHG JRDO WKH LPSURYHPHQW RI WKH VWDQGDUG RI OLYLQJ RI WKH JHQHUDO
SRSXODWLRQ DQG HYHQWXDOO\ JUHDWHU VHOIVXIILFLHQF\ IRU WKH FRXQWU\ 7KH
DSSURYDO IRU VXFK SURJUDPV ZDV DOPRVW DOZD\V ORRNHG IRU LQ WKH HYDOX
DWLRQV RI LQWHUQDWLRQDO RUJDQL]DWLRQV ,QVWHDG RI XVLQJ WKH VWDWLVWLFV RI
WKH 0LQLVWHULR GH (GXFDFLyQ 0,1('  WKH JRYHUQPHQW W\SLFDOO\ XVHV QXP
EHUV SURGXFHG E\ WKH 81(6&2 )RU DOO WKH WDON RI LQGHSHQGHQFH IURP WKH
HPSLUH DQG WKH XQLTXH QDWLRQDO GLVFXVVLRQ PXOWLQDWLRQDO FRPSDQLHV DQG
RUJDQL]DWLRQV ZHUH VWURQJO\ LQYROYHG LQ WKHVH 6DQGLQLVWD SURMHFWV

&RQFOXGLQJ UHPDUNV
:H KDYH VHHQ KRZ D GLYHUVH UDQJH RI SROLWLFDO FKDOOHQJHV LV KDQGOHG E\ 6DQ
GLQLVWDV RQ YDULRXV OHYHOV 7KLV LQFOXGHV KRZ LQWHUQDO 1LFDUDJXDQ FRQIOLFWV
RIWHQ RULJLQDWH IURP GHYHORSPHQWV DW D ZRUOG OHYHO ZLWKRXW DFNQRZOHGJLQJ
WKLV $W WLPHV DFWRUV RQ WKH LQWHUQDWLRQDO VWDJH DUH FDOOHG XSRQ E\ YDULRXV
1LFDUDJXDQ JURXSV DQG WKLV FDQ PHDQ WKH 1LFDUDJXDQ UHDOLW\ FKDQJHV TXLWH
FRQFUHWHO\ 7KURXJK DOO WKHLU DFWLRQV WKH 6DQGLQLVWDV VHHN WR PDNH 1LFDUD
JXD D PRUH LQGHSHQGHQW FRXQWU\ 6DQGLQLVWD OHDGHUV DOVR VHHN DSSURYDO
IRU WKH VXFFHVV RI WKHLU SURJUDPV LQ LQWHUQDWLRQDO RUJDQL]DWLRQV DQG ZRUN
RQ SURJUDPV WRJHWKHU ZLWK LQWHUQDWLRQDO FRPSDQLHV 9DULRXV HYHQWV KDYH
VKRZQ SRSXODU RUJDQL]DWLRQ LV D FHQWUDO HOHPHQW LQ 1LFDUDJXDQ SROLWLFDO
OLIH DQG VRPH HYHQWV VXFK DV HOHFWLRQV KDYH D GLVWLQFWLYHO\ SDUOLDPHQWDU\

H[SODLQHG WR PH WKDW WKH 81(6&2 FHUWLILHG DQ LOOLWHUDF\ UDWH RI  DQG WKDW VXEVHTXHQWO\
WKH ILJXUH IHOO WR  GXULQJ WKH VDPH \HDU
 6KDSLQJ SROLWLFV

FRQQRWDWLRQ DQG DUH D UHDVRQ IRU SRSXODU RUJDQL]DWLRQ LQ 1LFDUDJXD $W

WLPHV PDVV JDWKHULQJV DUH VWDJHG LQ RUGHU WR SURYRNH D UHDFWLRQ LQWHUQD
WLRQDOO\ DQG DW WLPHV WKH LQWHUQDWLRQDO SROLWLFDO VFHQH LV LQYRNHG LQ RUGHU
WR DSSHDVH WKH 1LFDUDJXDQ PDVVHV $OWRJHWKHU WKH ZKROH VWUXFWXUH RI
LQWHUQDWLRQDO LQIOXHQFHV DQG XQFHUWDLQW\ LQ WKH FRPPDQG KLHUDUFK\ RI
WKH )6/1 DQG WKH UHODWLRQVKLS EHWZHHQ YDULRXV JURXSV DOO EHOLHYLQJ WR
UHSUHVHQW 6DQGLQLVPR SUHVHQWV D SLFWXUH RI D YLEUDQW EXW FKDRWLF SROLWLFDO
ODQGVFDSH 7KLV LV WUXO\ UHSUHVHQWDWLYH RI 1LFDUDJXDQ SROLWLFV
 %GDRF "F?NRCP

2?LBGLGQR? NPMHCARQ MD AF?LEC

,Q WKH DIWHUPDWK RI WKH V YHUVLRQ RI 6DQGLQLVPR DQG D VXFFHVVLRQ
RI GLIIHUHQW ULJKWZLQJ JRYHUQPHQWV WKH UHWXUQ RI -RVp 'DQLHO 2UWHJD
6DDYHGUD6DQGLQLVPR LQ  ZDV FDVW DJDLQVW D PXFK PRUH YDULHJDWHG
EDFNGURS RI VXEYHUVLRQV RI 6DQGLQLVWD LGHRORJ\ 7KHVH GLIIHUHQW YHUVLRQV
DUH QRW VR PXFK UHIOHFWHG LQ GLIIHUHQW IUDFWLRQDO YHUVLRQV RI 6DQGLQLVPR
DOWKRXJK WKHUH DUH VXFK GLIIXVH WHQGHQFLHV
7KH FXUUHQW VLWXDWLRQ RI WKH FRXQWU\ LV PRVWO\ SRUWUD\HG LQ IRUHLJQ
PHGLD DV EHLQJ H[WUHPHO\ FHQWHUHG DURXQG 3UHVLGHQW 2UWHJD 6DDYHGUD DQG
WKH GHFLVLRQV KH PDNHV ,Q UHDOLW\ WKH 6DQGLQLVWDV DUH LQ SRZHU ²
LQ PRUH WKDQ MXVW WKH VHQVH WKDW WKH 1LFDUDJXDQ 3UHVLGHQW KDSSHQV WR EH
D IROORZHU RI WKH 6DQGLQLVWD LGHRORJ\ 7KH ODVW FKDSWHU ORRNHG DW DJH DV D
PDMRU IDFWRU LQ WHUPV RI ZKDW LW PHDQV WR EH D 6DQGLQLVWD 7KLV FKDSWHU
ORRNV DW GLIIHUHQW W\SHV RI 6DQGLQLVWDV DQG KRZ WKH\ DFW SROLWLFDOO\ :H WDNH
D ORRN DW WKH KLVWRULF VWUXFWXUH RI WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO
)6/1  DQG KRZ WKH SDUW\ QRZ ZRUNV GLIIHUHQWO\ DQG KDV FKDQJHG WR D
PRGHO LQ OLQH ZLWK ZKDW LV NQRZQ DV WKH ¶6RFLDOLVP IRU WKH VW &HQWXU\·
7KHQ WKH VLJQLILFDQFH 6DQGLQLVWDV DWWULEXWH WR SROLWLFDO DOOLDQFHV DQG WKH
GLIIHUHQW ZD\V RQH FDQ EH D 6DQGLQLVWD DFWLYLVW DUH YLHZHG

7KH KLVWRULF VWUXFWXUH RI WKH )6/1

:KHQ WKH )6/1 ILUVW VWDUWHG LQ  LW FRQVLVWHG RI RQO\ RQH LGHRORJLFDO
WHQGHQF\ ZLWK RQH QDWLRQDO GLUHFWRU\ ,Q WKH V WZR RWKHU WHQGHQFLHV
FDPH LQWR H[LVWHQFH DQG IRU D IHZ \HDUV WKH SDUW\ RSHUDWHG ZLWK WKUHH
UDWKHU LQGHSHQGHQW OHDGHUVKLSV ,Q HDUO\  WKH SDUW\ KHOG D XQLILFD
WLRQ FRQIHUHQFH LQ +RQGXUDV ZKHUH LW GHFLGHG D JURXS RI QLQH 6DQGLQLVWDV
WKUHH IURP HDFK WHQGHQF\ ZRXOG PDNH XS WKH QDWLRQDO OHDGHUVKLS 7KLV
RUJDQL]HG GLYLVLRQ RI SRZHU UHPDLQHG WKH VDPH WKURXJKRXW WKH V
7KH SDUW\ ZDV QRW RQH XQLILHG EORF DQG WKH GLYLVLRQV ZHUH LQVWLWXWLRQDO
L]HG VHH DOVR ³ 7KH )6/1 GLYLGHG LQWR WKUHH WHQGHQFLHV S   ,Q DGGLWLRQ WR
SDUWLFLSDWLRQ LQ WKH LGHRORJLFDO WHQGHQFLHV DQG ZRUN LQVLGH WKH SDUW\ D


 6DQGLQLVWD SURMHFWV RI FKDQJH

QXPEHU RI DFWLYLWLHV ZHUH RIIHUHG WR HQJDJH WKH JHQHUDO SRSXODWLRQ VR WKH\

FRXOG VHH WKHPVHOYHV DV SDUW RI WKH 6DQGLQLVPR SURMHFW 6RFDOOHG ¶PDVV
RUJDQL]DWLRQV· ZHUH FUHDWHG WR IDFLOLWDWH WKLV 7KH\ ZHUH JLYHQ IRUPDO UHS
UHVHQWDWLRQ DW YDULRXV OHYHOV 3DUW\ PHPEHUVKLS ZDV QRW DFTXLUHG E\ PRVW
SHRSOH LQYROYHG LQ WKHVH DFWLYLWLHV \HW WKH\ VRRQ UHIHUUHG WR WKHPVHOYHV
DV 6DQGLQLVWDV VHH DOVR ³ 7KH )6/1 VWUXFWXUH S   'XULQJ WKH V DQG
LQWR WKH V WKH SDUW\ FRQWUROOHG 79 VWDWLRQV DQG WKH QHZVSDSHU ¶/D
%DUULFDGD· 2SSRVLWLRQ QHZVSDSHUV ZHUH DOORZHG GXULQJ 6DQGLQLVWD UXOH
EXW FRPSODLQHG DERXW EHLQJ FHQVRUHG IUHTXHQWO\ E\ 6DQGLQLVWD DXWKRUL
WLHV :RUNLQJ LQ WKH 6DQGLQLVWD PHGLD RXWOHWV ZDV QHYHUWKHOHVV RQH ZD\ WR
EHFRPH VRPHZKDW FUHDWLYH DQG LQGHSHQGHQWO\ LQYROYHG LQ WKH 6DQGLQLVWD
SURMHFW 0RVW LQYROYHPHQW ZLWK WKH SROLWLFV DQG WKH )6/1 SDUW\ LQ WKH
V ZDV UDWKHU KLHUDUFKLFDOO\ RUJDQL]HG PRVW RI P\ LQIRUPDQWV FODLP
,Q VKRUW 0DQ\ GLIIHUHQW ZD\V H[LVWHG RI EHLQJ D 6DQGLQLVWD LQ WKRVH \HDUV
,Q WKH SRVW6DQGLQLVWD \HDUV DURXQG WKH WLPH ZKHQ WKH 0RYLPLHQWR
5HQRYDGRU 6DQGLQLVWD 056 VSOLW RII IURP WKH )6/1 LQ WKH V WKH QDWLRQDO
OHDGHUVKLS RI QLQH GLVVROYHG $IWHU WKDW 2UWHJD 6DDYHGUD KDV VHUYHG DV
WKH *HQHUDO 6HFUHWDU\ RI WKH SDUW\ 6HYHUDO RWKHU LQGLYLGXDOV KROG KLJK
SDUW\ SRVWV DQG DUH NQRZQ IRU LW 7KH QDPHV , KHDUG SHRSOH PHQWLRQ
DUH WKH 2UJDQL]DWLRQDO 6HFUHWDU\ 5HLQDOGR *UHJRULR /HQtQ &HUQD -XiUH]
&RPPXQLFDWLRQ 6HFUHWDU\ 5RVDULR 0XULOOR WKH ,QWHUQDWLRQDO 6HFUHWDU\
-DFLQWR -XiUH] DQG KLV PHGLDVDYY\ YLFH &DUORV )RQVHFD 7HUiQ
7KH IRUPDO VWUXFWXUH RI WKH SDUW\ WKDW GHFLGHV KRZ WKH LQGLYLGXDO OHDG
HUV DFTXLUHG WKHVH SRVWV LV RI OLWWOH FRQFHUQ WR PRVW 6DQGLQLVWDV 1RRQH ,
PHW RXWVLGH WKH )6/1 RIILFHV ZDV TXLWH DEOH WR H[SODLQ KRZ LW ZRUNHG DQG
QR GRFXPHQWV RU FKDUWV H[LVWHG RQ WKH ZHE SDJHV RI WKH )6/1 ZKLFK H[
SODLQHG ZKDW RIILFHV H[LVWHG DQG ZKR ZDV HOHFWHG WR ZKDW SRVLWLRQ , YLVLWHG
WKH GHSDUWPHQW RI RUJDQL]DWLRQ RI WKH )6/1 /HyQ WR DVN DERXW WKLV LVVXH
DQG VHDUFKHG IRU WKH VWDWXWHV RI WKH SDUW\ RQ RWKHU ZHEVLWHV , GLVFRYHUHG
WKDW WKH QDWLRQDO OHDGHUVKLS RI QLQH LQ WKH V ZDV UHSODFHG E\ D QDWLRQDO
6DQGLQLVWD FRXQFLO RI ² PHPEHUV ZKLFK LV DSSRLQWHG E\ QDWLRQDO FRQ
JUHVVHV RI DURXQG  6DQGLQLVWDV HYHU\  \HDUV DQG DGGLWLRQDOO\ LQFOXGHV
WKH )6/1 PD\RUV RI GHSDUWDPHQWR FDSLWDOV DQG SROLWLFDO VHFUHWDULHV RI WKH
SDUW\ DW WKH GHSDUWPHQWDO OHYHO ,W DSSRLQWV DOO WKH KHDGV RI WKH SDUW\ WKDW ,
KDG KHDUG DERXW DOUHDG\ DQG DGGLWLRQDOO\ VHFUHWDULHV DQG YLFH VHFUHWDULHV
IRU WKH DUHDV RI ZRPHQ \RXWK SROLWLFDO HGXFDWLRQ DQG ILQDQFHV DV ZHOO
 7KH SRVW RI RUJDQL]DWLRQDO VHFUHWDU\ RI WKH )6/1 ZDV VXVSHQGHG LQ 0D\  $UpYDOR
$OHPiQ 
$OWKRXJK 6DQGLQLVWDV KDYH FRQWURO RI PDQ\ DVSHFWV RI WKH VWDWH LQFOXGLQJ
PLOLWDU\ SROLFH DQG YDULRXV ODZPDNLQJ ERGLHV LQGLYLGXDO JURXSV RI 6DQ
GLQLVWDV RIWHQWLPHV SUHIHU WR ZRUN LQ D FODQGHVWLQH PDQQHU 7KHVH VWXGHQWV
KDYH WDNHQ KRVWDJHV LQVLGH D EXLOGLQJ EHFDXVH WKH\ GLVDJUHH ZLWK WKH EXGJHW
SURSRVDO RI WKH ODUJHO\ 6DQGLQLVWD XQLYHUVLW\ OHDGHUVKLS RI /HyQ :KHWKHU
WKH\ QHHG WR FRYHU WKHLU IDFHV LV TXHVWLRQDEOH DV WKH VWURQJO\ 6DQGLQLVWD
SROLFH VKRZV QR VLJQV RI ZDQWLQJ WR DUUHVW WKHP RU XVH SKRWRJUDSKLF RU
ILOPHG HYLGHQFH WR SURVHFXWH WKHP

DV WZR FRPPLWWHHV RQH WKDW RUJDQL]HV SDUW\LQWHUQDO HOHFWLRQV DQG RQH

WKDW LQVXUHV WKDW DOO VWUXFWXUHV RI WKH SDUW\ VWLFN WR WKH VWDWXWHV RI WKH
SDUW\ $W D OHYHO LQEHWZHHQ WKH QDWLRQDO FRQJUHVV DQG QDWLRQDO FRXQFLO
LV WKH QDWLRQDO DVVHPEO\ RI DSSUR[LPDWHO\  PHPEHUV 7KH QDWLRQDO
DVVHPEO\ LQFOXGHV WKH SROLWLFDO VHFUHWDULHV DQG PD\RUV DW WKH PXQLFLSLR
OHYHO 7KH DVVHPEOLHV PDNH DOO GHFLVLRQV RI PDMRU LPSRUWDQFH WKDW FRPH
XS LQEHWZHHQ QDWLRQDO FRQJUHVVHV 7KH VWUXFWXUH RI WKH WKH SDUW\ DW D
QDWLRQDO OHYHO LV ODUJHO\ FRSLHG DW WKH GHSDUWDPHQWR DQG PXQLFLSLR OHYHOV
$W D QHLJKERUKRRG OHYHO WKH SDUW\ FRQVLVWV RI JHQHUDO DVVHPEOLHV DQG &RQ
VHMRV GH /LGHUD]JR 6DQGLQLVWD 6DQGLQLVWD /HDGHUVKLS &RXQFLOV &/6V )6/1
 

:KLOH WKH IDFW WKDW KDUGO\ DQ\RQH NQRZV DERXW WKH IRUPDO VWUXFWXUH RI
WKH SDUW\ PD\ DW ILUVW JODQFH LQGLFDWH DQ H[WUHPHO\ FORVHG OHDGHUVKLS PRGHO
XSRQ FORVHU LQVSHFWLRQ LW LV RQO\ VR LQ WKH OLPLWHG VHQVH RI GHWHUPLQLQJ ZKR
WKH SUHVLGHQWLDO FDQGLGDWH LV WR EH 3RZHU GLIIHUHQFHV DPRQJ 6DQGLQLVWDV
H[LVW EXW WKH SDUW\ GRHV QRW IXQFWLRQ DV KLHUDUFKLFDOO\ DV RQH PD\ LQLWLDOO\
WKLQN :KHQ , YLVLWHG 1LFDUDJXD IRU WKH ILUVW WLPH 'HFHPEHU-DQXDU\
  DQG ZDV LQ 0DQDJXD IRU WKH LQDXJXUDWLRQ FHUHPRQ\ RI 2UWHJD


3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD·V LQDXJXUDWLRQ FHUHPRQ\ LQ -DQXDU\
 KRVWHG LQWHUQDWLRQDO OHDGHUV VXFK DV +XJR &KDYH] DQG (YR 0RUDOHV
DQG ZDV ZHOO YLVLWHG E\ WKH SXEOLF :KHQ 2UWHJD 6DDYHGUD VWDUWHG VSHDNLQJ
DERXW ZKLFK DVSHFWV RI WKH V SROLF\ DJHQGD KH ZRXOG QRW EH UHLQVWLWXWLQJ
PDQ\ 1LFDUDJXDQV OHIW WKH FHUHPRQ\

6DDYHGUD , ZDV DPD]HG WR GLVFRYHU RQO\ RQH SDUW\JURXS ZLWK RQH VHW
RI V\PEROV PDNLQJ XS WKH /HIW RI 1LFDUDJXD &RPSDUHG WR 0H[LFR ZLWK
LWV ZHDOWK RI VRFLDO RUJDQL]DWLRQV DQG SDUWLHV LW ZDV QRWLFHDEOH KRZ LQ
1LFDUDJXD HYHU\WKLQJ ZDV FHQWHUHG DURXQG WKH )6/1 DQG WKH V\PEROLVP
FRQQHFWHG WR $XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR 7KLV JDYH PH DQ LQLWLDO
SLFWXUH WKDW WKH )6/1 KDG QRW FKDQJHG PXFK VLQFH WKH V

:LWK WLPH , QRWLFHG PDUNHG GLIIHUHQFHV DPRQJ YDULRXV SDUWV RI WKH

6DQGLQLVWD PRYHPHQW LQYROYLQJ PDQ\ GLIIHUHQW DFWLYLWLHV :KHQ 2UWHJD
6DDYHGUD FDOOHG WKH )6/1 DQ ¶DQDUFKLVW SDUW\· *D\QRU   KH VHHPHG
WR XVH WKDW WHUP WR PHDQ WKH SDUW\ ZDV QRW DV FHQWUDOO\ FRQWUROOHG DV ZDV
WKH FDVH ZLWK PDQ\ VRYLHW DOLJQHG SDUWLHV 6LPLODUO\ ZLWK WKH )6/1 LQ
SRZHU WKH SDUW\ FRQWURO RI WKH FRXQWU\ LV QRW DV WLJKW DV RQH PLJKW WKLQN
7KLV LV HYLGHQW JLYHQ WKH PHGLD FRYHUDJH RI 2UWHJD 6DDYHGUD·V DGPLQLVWUD
WLRQ $W WKH VDPH WLPH LW FDQQRW EH GHQLHG WKH )6/1 FRQQHFWHG SDUW RI
WKH 6DQGLQLVWD PRYHPHQW ZDV H[HUWLQJ SRZHU $ JRRG H[DPSOH RI KRZ
WKH SDUW\ IXQFWLRQV GHFHQWUDOL]HG \HW H[HUWHG OLPLWHG SRZHU FRXOG EH
VHHQ LQ WKH FXUUHQW VWUXFWXUH RI WKH PHGLD &XUUHQWO\ WKH RQO\ WKUHH GDLO\
SDSHUV RI 1LFDUDJXD DUH /D 3UHQVD +R\ DQG (O 1XHYR 'LDULR $OO WKUHH RI
WKHVH DUH &RQVHUYDWLYH RU FHQWHU&RQVHUYDWLYH 7KLV ZRXOG XQGHU RWKHU
FLUFXPVWDQFHV VHHP OLNH D PHGLD VFHQH FRQWUROOHG E\ &RQVHUYDWLYH IRUFHV
7KH SDSHUV RQO\ SULQW  FRSLHV GDLO\ DOWRJHWKHU ² LQ D FRXQWU\ ZLWK
D SRSXODWLRQ RI  PLOOLRQ 5DGLR LV PXFK PRUH LQIOXHQWLDO ²  RI KRXVH


7KH KLVWRULF VWUXFWXUH RI WKH )6/1 

KROGV KDYH UDGLRV DQG  )0 DQG  $0 UDGLR VWDWLRQV EURDGFDVW 7KH
VWDWH PXFK RI ZKLFK GXULQJ 6DQGLQLVWD JRYHUQPHQWV LV DQ H[WHQVLRQ RI
WKH SDUW\ DSSDUDWXV RQO\ RZQV RQH VWDWLRQ ² 5DGLR 1LFDUDJXD 7KH )6/1
RZQV RQH QHZV SURJUDP DQG KROGV VKDUHV LQ WKH QDWLRQDO VWDWLRQ &DQDO 
DQG QLQH RI WKH PDQ\ ORFDO UDGLR VWDWLRQV  ,Q DGGLWLRQ DQRWKHU  VWDWLRQV
FDOO WKHPVHOYHV ¶6DQGLQLVWD· EXW WKH\ DUH RXWVLGH WKH SDUW\·V GLUHFW FRQ
WURO $URXQG  RI DOO 1LFDUDJXDQV DUH UHDFKHG E\ WKH 6DQGLQLVWD QHZV
SURJUDP DQG DURXQG  E\ WKHLU RWKHU SURJUDPV :LOOLDP *ULJVE\ 9DGR
FXUUHQW GLUHFWRU RI WKH 6DQGLQLVWD UDGLR VWDWLRQ /D 3ULPHUD H[SODLQHG WKH
UHODWLRQVKLS EHWZHHQ WKH YDULRXV VWDWLRQV WKLV ZD\ DV SDUW RI DQ LQWHUYLHZ
WR D *HUPDQ QHZVSDSHU
7KH YDULRXV VWDWLRQV SDUWLDOO\ DOVR SXUVXH GLIIHUHQW SROLWLFDO
LQWHUHVWV :H DUH DOO FKLOGUHQ RI WKH UHYROXWLRQ EXW WKHVH
GD\V HYHU\ UDGLR ILJKWV RQ LWV RZQ >«@ :H DUH 6DQGLQLVWD DQG
ZH DUH DXWRQRPRXV %HUJHU   RZQ WUDQVODWLRQ
7KH LQGHSHQGHQW 6DQGLQLVWD UDGLR VWDWLRQV DUH VWLOO ERXQG WR WKH VWDWH
SDUWLDOO\ VSRQVRUHG WKURXJK JRYHUQPHQW DGYHUWLVHPHQWV 7KH PHGLD DUH
FOHDUO\ QRW ZKROO\ FRQWUROOHG E\ WKH 6DQGLQLVWDV DOWKRXJK 6DQGLQLVWD PH
GLD PDNH RXW D FUXFLDO SDUW RI WKH PHGLD ODQGVFDSH 7KH 6DQGLQLVWD PHGLD
DUH QRW HQWLUHO\ FRQWUROOHG E\ 2UWHJD 6DDYHGUD EXW KDYH D QXPEHU RI
GLIIHUHQW 6DQGLQLVWD JURXSV FRQWUROOLQJ HDFK RI WKH YDULRXV RXWOHWV 7KLV
VWUXFWXUH RI WKH 6DQGLQLVWD PHGLD LV VLPLODU WR WKH VWUXFWXUH RI WKH SDUW\
RYHUDOO 7KH UHVW RI WKH FKDSWHU VKRZV WKLV

7KH SULQFLSOH RI DOOLDQFHV

:KLOH WKH SDUW\ LV QRW TXLWH XQLWHG DQG GHFLVLRQ PDNLQJ VWUXFWXUHV RIWHQ
WLPHV XQFOHDU LQ PDQ\ LQVWDQFHV DOOLDQFHV DUH VRXJKW ZLWK RWKHU JURXSV
RXWVLGH WKH 6DQGLQLVWD FDPS WR DFKLHYH VLQJOH DGYDQFHV RQ FHUWDLQ LVVXHV
7ULFNV VXFK DV SDVVLQJ ODZV WR SOHDVH RQH DOOLDQFH SDUWQHU RQO\ WR VXEVH
TXHQWO\ VXEYHUW LW E\ QRW HQIRUFLQJ LW RU XVLQJ RWKHU ODZV RU MXGLFLDO SUDF
WLFHV WR FRXQWHUDFW WKH LQLWLDO ODZ DQG DGYDQFHG VFKHPHV RI VKRUWOLYHG
DOOLDQFHV ZLWK YDULRXV JURXSV WR DFKLHYH D FHUWDLQ JRDO E\ VRPH 6DQGLQLVWD
VXEJURXS , ILQG WR EH W\SLFDO RI 6DQGLQLVWD UXOH :H QRZ ORRN DW VRPH RI
WKH PRVW ZHOONQRZQ H[DPSOHV RI WKLV LQ UHFHQW \HDUV
 7KH )6/1 RZQHUVKLS RI PHGLD RXWOHWV LV FKDQJLQJ UDSLGO\ 7KH GDWD DUH IURP ²
&DQDO  DQG  ZHUH DOVR 6DQGLQLVWD VWDWLRQV E\  DQG DUH GLUHFWHG E\ WKH VRQV RI 2UWHJD
6DDYHGUD
 6DQGLQLVWD SURMHFWV RI FKDQJH

7KHUDSHXWLF DERUWLRQ

2QH RI WKH WZR PRVW NQRZQ H[DPSOHV RI 1LFDUDJXDQ SROLWLFV RXWVLGH RI

1LFDUDJXD LV KRZ 2UWHJD 6DDYHGUD DSSDUHQWO\ ILQGV -HVXV MXVW LQ WLPH EHIRUH
WKH  SUHVLGHQWLDO HOHFWLRQV DQG PDUULHV KLV SDUWQHU RI RYHU  \HDUV
5RVDULR 0XULOOR LQ D &DWKROLF FHUHPRQ\ LQ  *RRUHQ   7KDW VDPH
IDOO WKH &DWKROLF FKXUFK PRELOL]HG DJDLQVW ZRPHQ·V ULJKW RI DERUWLRQ HYHQ
LQ FHUWDLQ OLPLWHG FDVHV ZKHQ WKH ZRPDQ·V OLIH LV LQ GDQJHU DQG RQO\ WKH
OLIH RI WKH ZRPDQ RU WKH IHWXV FDQ EH VDYHG 7KLV ULJKW KDG EHHQ SDUW RI WKH
FRQVWLWXWLRQ IRU DERXW D FHQWXU\ 7KH ULJKW ZDV ILUVW UHPRYHG LQ  DQG
RIILFLDOO\ RXWODZHG E\  ² DOO ZLWK WKH DSSURYDO RI WKH )6/1 DQG DOO WKH
ULJKWZLQJ SDUWLHV ,Q H[FKDQJH IRU WKDW VRPH &DWKROLF SULHVWV VXSSRUWHG
WKH )6/1 LQ WKH HOHFWLRQV *RRUHQ   ´,Q WKH V WKH &DWKROLF FKXUFK
ZDV DJDLQVW XV DQG QRZ WKH\ DUH ZLWK XVµ DQ HOGHUO\ SHUVRQ DW D /HyQ
FHQWHU IRU ROG UHYROXWLRQDULHV WULHG WR FRQYLQFH PH DV WR ZK\ WKH VWHS RQ
DERUWLRQ ZDV QHHGHG WDFWLFDOO\ LQ 'HFHPEHU  ,W JUDGXDOO\ EHFDPH
FOHDUHU GXULQJ P\ WLPH LQ 1LFDUDJXD WKDW ¶IRUELGGLQJ· DERUWLRQ GLG QRW
PHDQ DQG ZDV QRW PHDQW WR PHDQ VWRSSLQJ LWV SUDFWLFH RU HYHQ WR VWRS WKH
VWDWH IURP RUJDQL]LQJ LW
,W WRRN DQRWKHU LQYHVWLJDWRU 5DNHO +HOJKHLP RI WKH 8QLYHUVLW\ RI
%HUJHQ 1RUZD\ WR FRQGXFW D VHULHV RI LQWHUYLHZV ZLWK PHPEHUV RI FLYLO
LDQ VRFLHW\ WR ILQG RXW ZKDW H[DFW OHJDO VLWXDWLRQ H[LVWHG DIWHU WKHUDSHXWLF
DERUWLRQ KDG EHHQ PDGH LOOHJDO :H VWD\HG DW WKH VDPH SODFH LQ /HyQ
GXULQJ WKH ILUVW PRQWKV RI P\ VWD\ 6KH ZDV IXULRXV DERXW WKLV FKDQJH
WR WKH ODZ 2QH GD\ VKH FDPH KRPH DQG H[SODLQHG VKH KDG MXVW IRXQG
RXW WKDW DURXQG WKH WLPH DERUWLRQ ZDV PDGH HQWLUHO\ LOOHJDO D FKDQJH
SXEOLFL]HG LQ ERWK QDWLRQDO DQG LQWHUQDWLRQDO SUHVV WKH FRGH RI FRQGXFW
RI KRVSLWDOV KDG FKDQJHG $FFRUGLQJ WR WKH QHZ FRGH KRVSLWDOV KDG WR
SULRULWL]H WKH VXUYLYDO RI WKH SDWLHQW KLJKHU WKDQ DQ\ RWKHU ODZ 7KLV ZDV
QRW SXEOLVKHG DQ\ZKHUH DW WKH WLPH ,W ZDV QRW EHIRUH WKH VXPPHU RI 
WKDW WKH (O 1XHYR 'LDULR FDUULHG D VWRU\ DWWDFNLQJ WKH )6/1 IRU WKH 0LQLVWHULR
GH 6DOXG 0,16$ KDYLQJ FRQGXFWHG DERUWLRQV DIWHU LW ZDV RIILFLDOO\ IRUELG
GHQ $JXLOHUD E D  , UHFHLYHG VRPH SULYDWH WDONLQJ SRLQWV IURP
)RQVHFD 7HUiQ F LQ -XO\  +H XVHG WKHP LQ FRQIHUHQFHV ZLWK LQ
WHUQDWLRQDO SDUWLFLSDQWV ZKR KHDUG DERXW WKH 056 YHUVLRQ RI HYHQWV 0RVW
RI KLV SRLQWV PLUURUHG WKH FRQFOXVLRQV , KDG DUULYHG DW DIWHU LQYHVWLJDWLQJ
WKH PDWWHU IRU PRQWKV ,Q WKH HQG ERWK 056 DQG )6/1 IDYRU DERUWLRQ LQ
WKH VLWXDWLRQ ZKHUH WKH PRWKHU·V OLIH LV LQ GDQJHU HYHQ WKRXJK WKH )6/1
2QH JURXS RI 6DQGLQLVWD YHWHUDQV ZKR IRXJKW LQ WKH UHYROXWLRQDU\ LQVXU
UHFWLRQ WRRN FRQWURO RI D EXLOGLQJ LQ GRZQWRZQ /HyQ DIWHU WKHLU YLFWRU\
3UHYLRXVO\ WKH EXLOGLQJ KDG EHHQ WKH ORFDO FRPPDQG FHQWHU RI WKH *XDUGLD
1DFLRQDO *1  ,W QRZ VHUYHV DV WKHLU PHHWLQJ VSDFH³PRVWO\ XVHG WR ZDWFK
79 WRJHWKHU³DQG LW FRQWDLQV D SKRWR H[KLELW ZKLFK WKH\ XVH WR WHDFK IRU
HLJQHUV DERXW WKHLU VWUXJJOH LQ H[FKDQJH IRU D VPDOO IHH 7KH\ H[SODLQ WKDW
WKH FRXQWU\ QHHGV WR IROORZ WKH &DWKROLF FKXUFK LQ WKHLU YLHZ RI DERUWLRQV
VR WKDW WKH &KXUFK LQ WXUQ VXSSRUWV WKH 6DQGLQLVWD JRYHUQPHQW


:RPHQ·V ULJKWV JURXSV KDYH SURWHVWHG DJDLQVW -RVp 'DQLHO 2UWHJD 6DDYHGUD·V
FRPSURPLVH ZLWK WKH &DWKROLF FKXUFK RQ DERUWLRQ 1HYHUWKHOHVV D ORW RI KLV
VXSSRUW FRPHV IURP GLVHQIUDQFKLVHG JURXSV

GRHV LW LQ D PRUH KLGGHQ PDQQHU ,Q WKLV FDVH , IHOO LQWR WKH WUDS RI WDNLQJ
UHPDUNV RI D WDFWLFDO QDWXUH WR EH UHSUHVHQWDWLYH RI ZKDW P\ LQIRUPDQWV
DFWXDOO\ EHOLHYHG

(O SDFWR

7KH VHFRQG IHDWXUH RI 1LFDUDJXDQ SROLWLFV WKDW SHRSOH RXWVLGH WKH FRXQWU\
KDYH KHDUG DERXW LV WKDW DQ DOOLDQFH WR VSOLW DOO SRZHUIXO SRVLWLRQV LQ WKH
VWDWH EHWZHHQ WZR SRZHUIXO JURXSV RU WZR SRZHUIXO LQGLYLGXDOV H[LVWV 7KH
UHDOLW\ LV PDQ\ VKLIWLQJ DOOLDQFHV DSSHDU LQ 1LFDUDJXDQ SROLWLFV HVSHFLDOO\
EHWZHHQ GLIIHUHQW SDUWLHV 7KH )6/1 VHHPV WR VHHN D SROLWLFDO PDMRULW\ LQ
SDUOLDPHQW ZLWK ZKRPHYHU WKH\ FDQ RQ DQ\ JLYHQ LVVXH DW DQ\ SRLQW LQ WLPH
+RZHYHU RQH VXFK DOOLDQFH LV IRFXVHG XSRQ PRUH WKDQ DQ\ RI WKH RWKHUV LQ
ERWK 1LFDUDJXDQ DQG IRUHLJQ SUHVV 7KLV SDUWLFXODU DOOLDQFH FDUULHV ZLWK LW
D QHJDWLYH XQGHUWRQH WKDW RWKHU DOOLDQFHV GR QRW 7KLV DOOLDQFH NQRZQ DV
HO SDFWR FRQFHUQV DW WLPHV WKH )6/1 DQG WKH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD
3/&  DQG RWKHU WLPHV MXVW WKHLU OHDGHUV 2UWHJD 6DDYHGUD DQG -RVp $UQROGR
$OHPiQ /DFD\R $OHPiQ /DFD\R DQG 2UWHJD 6DDYHGUD DUH VDLG WR KDYH PDGH
D SDFW LQ WKH ODWH V WR GLYLGH DOO SRVLWLRQV RI VWDWH SRZHU EHWZHHQ WKHP
LQ UHWXUQ IRU WKH )6/1 SHUPLWWLQJ $OHPiQ /DFD\R WR JRYHUQ PRUH RU OHVV
XQLQWHUUXSWHG GXULQJ KLV SUHVLGHQWLDO WHUP
,W LV WUXH WKDW ZKHQ SDUOLDPHQW VWRSSHG ZRUNLQJ IRU VHYHUDO PRQWKV


7KH KLVWRULF VWUXFWXUH RI WKH )6/1 

DIWHU WKH PXQLFLSDO HOHFWLRQV RI 1RYHPEHU  D VROXWLRQ ZDV IRXQG

LQ ZKLFK FHUWDLQ FKDUJHV RI IUDXG ZHUH GURSSHG DJDLQVW $OHPiQ /DFD\R
7KLV KDSSHQHG PRVW OLNHO\ WKURXJK JRYHUQPHQW LQWHUYHQWLRQ DQG WKH
)6/1 ZDV VLPXOWDQHRXVO\ JLYHQ FRQWURO RI PRVW RI SDUOLDPHQW VHH DOVR
³ 3DUOLDPHQW VWRSSHG ZRUNLQJ 1RYHPEHU  ² )HEUXDU\   S   (O
SDFWR PD\ QRW KDYH EHHQ WKH IDYRUHG FKRLFH E\ WKH )6/1 OHDGHUVKLS LQ
WKLV VLWXDWLRQ &XDGUD 1~xH] DQG )RQVHFD 7HUiQ E SRLQW RXW WKH
FRQVWLWXWLRQ ZDV FKDQJHG LQ  LQ D ZD\ ZKLFK REOLJDWHG HYHQ WKH ODUJHU
SDUWLHV WR VHHN DSSURYDO RI RWKHU JURXSV LQ SDUOLDPHQW LQ RUGHU WR EH DEOH
WR DSSRLQW D ZLGH UDQJH RI RIILFLDOV $W WKH WLPH QHLWKHU 3/& QRU )6/1 KHOG
PDQ\ VHDWV LQ SDUOLDPHQW ZKHUHDV WKH 056 GLG DQG ZDV SDUW RI WKH JURXS
ZKLFK DSSURYHG WKLV FKDQJH &XDGUD 1~xH] DQG )RQVHFD 7HUiQ FODLP WKH
LGHD EHKLQG WKH FKDQJH ZDV WR REOLJDWH WKH )6/1 DQG 3/& WR QHJRWLDWH ZLWK
VPDOOHU SDUWLHV VXFK DV WKH 056 LQ FRQQHFWLRQ ZLWK KDQGLQJ RXW SRVLWLRQV
,Q WKH FDVH RI WKH LQWHUQDWLRQDO SUHVV LW EHFRPHV HDV\ WR XQGHUVWDQG
KRZ HO SDFWR LV VHHQ DV HYLO PLVLQIRUPDWLRQ DQG KDOILQIRUPDWLRQ OHDG WR
VWUDQJH FRQFOXVLRQV EHLQJ <HW WKLV W\SH RI PDQHXYHULQJ LV QRW DOO WKDW
XQFRPPRQ IRU 1LFDUDJXDQ SROLWLFV WKH )6/1 VSHFLILFDOO\ XVLQJ LW WR WKHLU
JUHDW DGYDQWDJH 7KHUHIRUH , KDYH GLIILFXOWLHV XQGHUVWDQGLQJ WKH FRQWUR
YHUV\ WKLV JHQHUDWHV IRU 6DQGLQLVWDV ZKR DUH DQJU\ DERXW HO SDFWR :KHQ ,
ILUVW OHDUQHG RI WKH VXUURXQGLQJ FLUFXPVWDQFHV DQG WKHQ XQGHUVWRRG WKDW
WKH IRUHLJQ SUHVV ZHUH RQO\ UHSHDWLQJ DQWL)6/1 SURSDJDQGD , VWDUWHG
DVNLQJ 1LFDUDJXDQV ZKDW LW ZDV WKDW PDGH HO SDFWR ZRUVH IRU WKHP SHUVRQ
DOO\ WKDQ RWKHU DOOLDQFHV 0RVW ZHUH QRW DEOH WR H[SODLQ LW WR PH RU FKRVH
QRW WR WU\ 6RPH H[SODLQHG LW OLNH -RUJH 0DGUL] ZKR LV DFWLYH LQ WKH VPDOO
SDUW\ $OWHUQDWLYD SRU HO &DPELR $&  ZKLFK VRPH RWKHU LQIRUPDQWV VDLG LV
ILOOHG ZLWK 6DQGLQLVWDVSLHV DQG ZKLFK UDQ LQ WKH  QDWLRQDO HOHFWLRQV
WRJHWKHU ZLWK WKH )6/1
,W·V TXLWH VWUDLJKWIRUZDUG :KHQ RWKHU SDUWLHV GR LW LW·V FDOOHG
¶DQ DOOLDQFH· DQG LW·V QRUPDO EXW ZKHQ WKHQ )6/1 GRHV WKH
VDPH LW·V FDOOHG ¶HO SDFWR· DQG LW·V WHUULEO\ KXUWIXO
7KLV LV WKH VDPH FRQFOXVLRQ , UHDFKHG \HW LW JLYHV QR IXUWKHU LQIRUPDWLRQ
RI ZKDW LW LV WKDW PDNHV VXFK DQ DOOLDQFH QHJDWLYH IRU D 6DQGLQLVWD &DUROLQD
,FDEDOFHWD *DUD\ VDLG VRPHWKLQJ ZKLFK SRLQWV LQ WKH GLUHFWLRQ RI ZKDW PD\
EH WKH EDFNJURXQG IRU 6DQGLQLVWD VNHSWLFV RI FRRSHUDWLRQ ZLWK $OHPiQ
/DFD\R DQG KLV SDUW\ 6KH H[SODLQHG LW WKLV ZD\
, KDYH VWXGLHG WKH KLVWRU\ RI 1LFDUDJXD DQG WKH KLVWRU\ RI
 6DQGLQLVWD SURMHFWV RI FKDQJH

PDQ\ RWKHU SODFHV DQG WKH SDFWRV DUH QHYHU DFFHSWDEOH LW·V
DOZD\V WKH UXOLQJ FODVV SDFWLQJ LQ RUGHU WR VWD\ LQ SRZHU
,I ,FDEDOFHWD *DUD\·V DQDO\VLV LV WKH RSLQLRQ RI WKH DYHUDJH 1LFDUDJXDQ
WKHQ WKDW ZRXOG FHUWDLQO\ QRW EH VWUDQJH JLYHQ WKH LPSRUWDQFH WKDW 1LFDUD
JXDQV DWWDFK WR KLVWRU\ DQG KLVWRULFDO H[DPSOHV , QHYHU KHDUG WKH KLVWRULF
FRPSDULVRQ PDGH E\ RWKHUV /DWHU ,FDEDOFHWD *DUD\ VSHFLILHG ZKDW KHU
LVVXHV ZLWK HO SDFWR ZHUH
, ZRXOG OLNH IRU \RX WR ZULWH GRZQ WZR LVVXHV , VWURQJO\
GLVOLNH DERXW HO SDFWR
7KH ILUVW KDV WR GR ZLWK WKH >ODZ RQ@ WKHUDSHXWLF DERUWLRQ
7KLV FRQFHVVLRQ WR WKH FKXUFK , ILQG HPEDUUDVVLQJ XQMXVW DQG
LQKXPDQH >«@
7KH RWKHU KDV WR GR ZLWK SRSXODU SDUWLFLSDWLRQ %HIRUH
\RX FRXOG FUHDWH D QHZ SDUW\ ZLWK WKH VLJQDWXUHV RI , GRQ·W
NQRZ KRZ PDQ\ SHRSOH >«@
7KH ILUVW RI WKH LVVXHV ,FDEDOFHWD *DUD\ PHQWLRQHG VHHPV WR EH UHODWHG WR
WKH FRRSHUDWLRQ ZLWK WKH &DWKROLF FKXUFK ,W LV QRW VWULFWO\ FRYHUHG E\ WKH
WHUP HO SDFWR EHWZHHQ WKH 3/& DQG WKH )6/1 DV WKH PHGLD DQG RSSRVLWLRQ
SDUWLHV XVH LW EXW WKH FRQIODWLRQ RI HO SDFWR ZLWK RWKHU TXHVWLRQDEOH GHDOV
WKH )6/1 OHDGHUVKLS KDV PDGH ZLWK RWKHU JURXSV LV QRW XQFRPPRQ 7KH
H[SODQDWLRQV , UHFHLYHG IURP RWKHU 1LFDUDJXDQV ZHUH VLPLODU 7KLV PD\
H[SODLQ ZK\ PDQ\ 6DQGLQLVWDV H[FODLP WKDW WKH\ DUH VWURQJO\ DJDLQVW HO
SDFWR 7KH VHFRQG RI ,FDEDOFHWD *DUD\·V LVVXHV UHODWHV WR VRPH FKDQJHV
PDGH WR WKH &RQVWLWXWLRQ LQ WKH V ZKLFK PDGH LW KDUGHU WR IRUP QHZ
SDUWLHV WKDQ XQGHU WKH RULJLQDO FRQVWLWXWLRQ FUHDWHG GXULQJ WKH 6DQGLQLVWD
JRYHUQPHQW RI WKH V 7KLV PD\ DUJXDEO\ EH VHHQ DV SDUW RI HO SDFWR ,
KHDUG WKLV LVVXH PHQWLRQHG VHYHUDO WLPHV E\ DFDGHPLF 6DQGLQLVWDV DV RQH
RI WKHLU PDLQ FULWLFLVPV RI HO SDFWR

7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQ

WXU\
7KH WHUP ¶6RFLDOLVP IRU WKH VW &HQWXU\· LV XVHG LQ PXFK RI /DWLQ $PHU
LFD GXH WR WKH ERRN (O VRFLDOLVPR GHO VLJOR [[L 'LHWHULFK   9HQH]XHODQ
 $W WKH WLPH RI WKH LQWHUYLHZ WKH PHGLD KDG QRW \HW UHSRUWHG WKH IDFW WKDW 1LFDUDJXDQ
KRVSLWDOV FRQWLQXHG WR FRQGXFW DERUWLRQV
7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

3UHVLGHQW +XJR &KDYH] DQG KLV IROORZHUV SURPRWH WKLV ERRN KHDYLO\ 'L
HWHULFK  PHQWLRQV IRXU PDLQ SULQFLSOHV LQFOXGHG LQ WKH QHZ W\SH RI
VRFLDOLVP

 (TXDO SD\ IRU WKLQJV WKDW WDNH WKH VDPH DPRXQW RI WLPH WR GR

 ,QFRUSRUDWLRQ RI GLUHFW SDUWLFLSDWLYH GHPRFUDF\

 'HPRFUDWLF VWDWH LQVWLWXWLRQV WKDW OHJLWLPDWHO\ UHSUHVHQW FLWL]HQV DW

D ORFDO OHYHO

 6HOIGHWHUPLQDWLRQ DQG FULWLFLVP E\ WKH FLWL]HQV

$FFRUGLQJ WR D SULYDWH SURMHFW ILOH E\ )RQVHFD 7HUiQ DQG KLV ZLIH &XDGUD
1~xH] /RJURV GH OD 5HYROXFLyQ 6DQGLQLVWD HQ VX VHJXQGD HWDSD WKH SDUWV
RQ GLUHFW GHPRFUDF\ SODQQHG DQG VHW XS E\ WKH 6DQGLQLVWD JRYHUQPHQW
LQFOXGH WKH 1LFDUDJXDQ JRYHUQPHQW·V SODQ WR LPSOHPHQW WKH SURMHFW RI
D ¶6RFLDOLVP IRU WKH VW &HQWXU\· LQ 1LFDUDJXD 7KH\ FODLP WKLV W\SH RI
VRFLDOLVP LV FRPSDWLEOH ZLWK VRPH RI WKH SROLFLHV RI WKH 2UWHJD 6DDYHGUD
JRYHUQPHQW &XDGUD 1~xH] DQG )RQVHFD 7HUiQ D 
6XUSULVLQJO\ QRQH RI P\ 6DQGLQLVWD LQIRUPDQWV UHIHUUHG WR HLWKHU WKH
ERRN RU WKH WHUP 7KH WHUP ¶VRFLDOLVP· ZDV XVHG E\ RQO\ VRPH 1LFDUDJXDQV
ZKR LGHQWLILHG SRVLWLYHO\ ZLWK WKH 6DQGLQLVWD H[SHULHQFH RI WKH V LQ
WKH ILUVW IHZ \HDUV DIWHU  0DQ\ RI WKH \RXQJHU 6DQGLQLVWDV KDG QHYHU
HYHQ KHDUG RI LW 2QFH LQ WKH EDFN RI D SLFNXS ILOOHG ZLWK 6DQGLQLVWDV LQ
/HyQ IROORZLQJ RWKHU FDUV FHOHEUDWLQJ WKH 6DQGLQLVWD GHIHQVH RI WKH FLW\
VRPH GD\V HDUOLHU DJDLQVW D SODQQHG PDUFK E\ WKH /LEHUDOV , ZDV DVNHG
E\ WHHQDJHUV ´:KDW DUH \RX"µ , DQVZHUHG ´, DP D VRFLDOLVWµ 7KH\ DVNHG
VRPHZKDW SHUSOH[HG ´'RHV WKDW PHDQ \RX DUH ULJKW RU OHIW"µ
,Q VSLWH RI DOO WKH SURMHFWV FXUUHQWO\ UXQQLQJ LQ WKH QDPH RI 6DQGLQLVPR
PDQ\ RI WKRVH LGHQWLI\LQJ VWURQJO\ ZLWK WKH VRFLDOLVW SURMHFW RI WKH V
GRXEW WKH UHYROXWLRQDU\ FKDUDFWHU RI WKH FXUUHQW SKDVH ,FDEDOFHWD *DUD\
H[SUHVVHG LW WKLV ZD\

/RRN ,·G OLNH IRU WKLV WR EH D UHYROXWLRQ EXW LW MXVW LVQ·W , ZLOO
QRW OHW P\VHOI EH IRROHG E\ WKDW

(YHQ WRS )6/1 RIILFLDOV VXFK DV )RQVHFD 7HUiQ VHH WKH FXUUHQW SURFHVV
DQG VSHFLILFDOO\ WKH SDUW RI SRSXODU SDUWLFLSDWLRQ FULWLFDOO\
 %\  WKLV KDG FKDQJHG DQG ¶VRFLDOLVWD· ZDV QRZ RQH RI WKUHH ZRUGV XVHG WR GHVFULEH
6DQGLQLVPR DV SDUW RI WKH QH[W HOHFWLRQ FDPSDLJQ WRJHWKHU ZLWK &ULVWLDQR DQG 6ROLGDULR
 6DQGLQLVWD SURMHFWV RI FKDQJH

'XH WR D VHULHV RI KLVWRULF FLUFXPVWDQFHV WKH SROLWLFDO FXO

WXUH RI 1LFDUDJXD GRHV QRW LQFOXGH WKH SRVVLELOLW\ IRU FKDQJHV
WKURXJK QRQYLROHQW VWUXJJOHV QRU WKURXJK VRFLDO VWUXJJOHV
7KH DYHUDJH 1LFDUDJXDQ FLWL]HQ FDQ RQO\ XQGHUVWDQG FKDQJHV
DV D SURGXFW RI ZDUV RU HOHFWLRQV 7KLV FRQVWLWXWHV DQ REVWDFOH
IRU WKH HVWDEOLVKPHQW RI GLUHFW GHPRFUDF\ DQG IRU &LWL]HQ
3RZHU WR EH LQVWDOOHG IURP EHORZ LQ WKH VXEMHFWLYH UHDOLW\
RI 1LFDUDJXD ¶>WDNLQJ@ SRZHU· LV QRW D GHPDQG RI WKH SHRSOH
ZKDW WKH\ H[SHFW LV QRW WR H[HUFLVH SRZHU WKHPVHOYHV EXW WKDW
LW EH H[HUFLVHG WR RQH·V EHQHILW 7KHUHIRUH FKDQJH LQ WKH SR
OLWLFDO V\VWHP FDQ DW WKLV SRLQW RQO\ EH SURPRWHG IURP DERYH
WKURXJK WKH IRUPDO LQVWDOODWLRQ RI &LWL]HQ 3RZHU &XDGUD 1~xH]
DQG )RQVHFD 7HUiQ D ² P\ WUDQVODWLRQ 

:KHQ , ILUVW FDPH DFURVV WKLV TXRWH , ZDV UDWKHU DVWRQLVKHG DV P\ SHU
VRQDO H[SHULHQFH RI 1LFDUDJXD ZDV WKDW WKHUH ZDV D FRPSDUDWLYHO\ KLJK
DPRXQW RI SRSXODU SDUWLFLSDWLRQ LQ SROLWLFDO GHFLVLRQ PDNLQJ HVSHFLDOO\
DPRQJ WKH 6DQGLQLVWD SDUW RI WKH SRSXODWLRQ , ZLOO WU\ WR VKRZ KRZ GL
YHUVH DQG FRPSOH[ WKH SURFHVV RI H[HUWLQJ SRZHU LV IRU WKH 6DQGLQLVWDV
DQG WKDW WKH\ JHQHUDOO\ OLH RXWVLGH WKH VFRSH RI ZKDW D VLQJOH LQGLYLGXDO
FDQ FRQWURO , ZLOO DOVR GHPRQVWUDWH WKDW WKH SURFHVV RI H[HUWLQJ SRZHU IRU
WKH 6DQGLQLVWDV LV D IXQGDPHQWDOO\ FROOHFWLYH SURFHVV , EHOLHYH WKLV VHWV
WKH 6DQGLQLVWD H[DPSOH DSDUW IURP PDQ\ RWKHU VRFLDOLVW PRYHPHQWV DQG
SHUPLWV D EURDGUHDFKLQJ LGHQWLILFDWLRQ ZLWK ZKDW 1LFDUDJXDQV VHH DV D
UHYROXWLRQDU\ SURFHVV

:D\V RI H[HUWLQJ SRZHU E\ LQGLYLGXDOV DQG JURXSV

:KLOH WKH DOOLDQFHV EHWZHHQ 6DQGLQLVWDV DQG QRQ6DQGLQLVWD JURXSV DW
WUDFWV PXFK SXEOLF GLVFXVVLRQ WKH GLIIHUHQFHV DPRQJ DQG UHODWLRQV EH
WZHHQ 6DQGLQLVWDV DUH MXVW DV QXPHURXV DQG FRPSOH[ :LWK WKH GLIIHUHQW
W\SHV RI 6DQGLQLVWDV FRPH GLIIHUHQW ZD\V RI WU\LQJ WR H[HUW SRZHU -XVW
DERXW DOO 6DQGLQLVWDV , PHW DJUHHG WKDW WKH VHFRQG SUHVLGHQF\ RI 2UWHJD
6DDYHGUD LV WKH ULJKW WLPH IRU WKHP WR FROOHFWLYHO\ H[HUW SRZHU DQG WKH\
KDYH D UHVSRQVLELOLW\ WR GR WKDW 7KH PHWKRGV WR DFKLHYH WKLV GLIIHU 6RPH
XVH WKH SDUW\ KLHUDUFK\ WR REWDLQ D KLJK OHYHO MRE 2WKHUV XVH OHVV WUDGL
WLRQDO ZD\V ,Q WKH IROORZLQJ , VKRZ D QXPEHU RI ZD\V , QRWLFHG 6DQGLQLVWDV
WU\ WR H[HUW SRZHU , GR QRW DVVXPH WKLV OLVW WR EH FRPSOHWH EXW LW JLYHV DQ
LQVLJKW LQWR WKH UDQJH RI GLIIHUHQW PHWKRGV WR DWWHPSW FKDQJH LQ VRFLHW\
0DUtD $QWRQLHWD %ODQGyQ 0RQWHQHJUR VHFRQG IURP OHIW LV WKH ([HFXWLYH
'LUHFWRU RI WKH 2ILFLQD GH (WLFD 3~EOLFD 2(3  D SRVLWLRQ HTXLYDOHQW WR D PLQ
LVWHU 6KH WKLQNV WKH MRE LV QRW SDUWLFXODUO\ UHZDUGLQJ IRU DQ DFWLYLVW OLNH
KHUVHOI +HUH VKH UHSUHVHQWV WKH 2(3 LQ D SUHVHQWDWLRQ JLYHQ E\ JRYHUQPHQW
UHSUHVHQWDWLYHV WR 0DQDJXD VWXGHQWV DERXW ZK\ LW LV LPSHUDWLYH IRU WKH
JRYHUQPHQW QRW WR IDYRU 6DQGLQLVWDV ZKHQ JLYLQJ RXW VRFLDO VHUYLFHV

3RZHU WKURXJK JRYHUQPHQW SRVLWLRQV

7KH PRVW REYLRXV DQG SDLQOHVV ZD\ RI H[HUWLQJ SRZHU DQG WU\LQJ WR PRYH
VRFLHW\ DFFRUGLQJ WR RQH·V RZQ LGHDOV LV DV DQ HOHFWHG UHSUHVHQWDWLYH LPSOH
PHQWLQJ QHZ ODZV DQG SXWWLQJ LQWR HIIHFW ODZV IRUJRWWHQ E\ WKH DXWKRULWLHV
ZKHQ WKLV LV FRQYHQLHQW IRU WKHLU SDUW\ 7KH )6/1 ZRQ WKH HOHFWLRQV LQ 
DQG  $ VXEVWDQWLDO SDUW RI WKHLU SHUVRQDO UHVRXUFHV JR LQWR WKH ZRUN
FRQQHFWHG ZLWK KROGLQJ WKHLU RIILFLDO SRVLWLRQV $V SDUW RI D 6DQGLQLVWD
SDUOLDPHQWDU\ JURXS RQH LV JHQHUDOO\ H[SHFWHG WR YRWH DFFRUGLQJ WR SDUW\
OLQHV EXW LQGLYLGXDO HOHFWHG RIILFLDOV FDQ LQIOXHQFH KRZ RU LI WKHLU YRWH LV
FRXQWHG 7KH QDWLRQDO )6/1 PHPEHU RI SDUOLDPHQW IURP /HyQ *ODG\V %iH]
LV VDLG QRW WR KDYH DWWHQGHG QRU WR KDYH VHQW KHU VXEVWLWXWH RQ WKH GD\ RI
WKH QHZ DERUWLRQ ODZ YRWH WKHUHE\ VOLJKWO\ FKDQJLQJ WKH RXWFRPH RI WKH
YRWH
6HYHUDO \RXQJHU 6DQGLQLVWDV , VSRNH ZLWK ZRXOG OLNHO\ QRW UHMHFW D
SRVLWLRQ DV DQ HOHFWHG UHSUHVHQWDWLYH EXW GLIIHUHQW IURP P\ H[SHULHQFH
ZLWK SDUW\ \RXWKV LQ (XURSH WKHUH LV JHQHUDOO\ UHPDUNDEO\ OLWWOH IRFXV RQ
DUULYLQJ DW WKLV SRVLWLRQ LQ WKHLU GDLO\ GLVFRXUVH 7KDW LV EHFDXVH GLIIHUHQW
IURP PXFK RI WKH (XURSHDQ /HIW SDUOLDPHQWDU\ ZRUN LV QRW XQLYHUVDOO\
VHHQ DV EHLQJ WKH KLJKHVW OHYHO RI UHYROXWLRQDU\ ZRUN $Q H[FHOOHQW H[DP


 6DQGLQLVWD SURMHFWV RI FKDQJH

SOH LV 0DUtD $QWRQLHWD %ODQGyQ 0RQWHQHJUR WKH ([HFXWLYH 'LUHFWRU RI WKH

2ILFLQD GH (WLFD 3~EOLFD 2(3 GXULQJ WKH FXUUHQW JRYHUQPHQW D SRVLWLRQ
URXJKO\ HTXLYDOHQW WR D PLQLVWHU VHH DOVR ³ 9LHZV RQ WKH FXUUHQW JRYHUQPHQW
S   %HIRUH VKH ZDV JLYHQ WKLV SRVLWLRQ VKH ZRUNHG RQ EHKDOI RI ODQG
OHVV IDUPHUV VRPHWKLQJ VKH WROG PH DSRORJHWLFDOO\ WKDW VKH QRZ GRHV RQO\
RQ ZHHNHQGV $IWHU H[SODLQLQJ WKLV WR PH VKH LPPHGLDWHO\ DSRORJL]HG IRU
QRW ZRUNLQJ PRUH RQ LW ,Q FRQWUDVW LQ (XURSH LW ZRXOG EH KLJKO\ XQXVXDO
IRU OHIWLVW SROLWLFLDQV WR FRQWLQXH WR ZRUN DV DFWLYLVWV ZKLOH KROGLQJ SDUOLD
PHQWDU\ RU JRYHUQPHQW RIILFH , IRXQG LW HYHQ PRUH LQWULJXLQJ WR KHDU
%ODQGyQ 0RQWHQHJUR·V SODQV IRU KHU IXWXUH DIWHU ILQLVKLQJ KHU FDUHHU DV
D SROLWLFLDQ 7R FUHDWH D VFKRRO IRU FRRSHUDWLYHV LQ 0DWDJDOSD DQG WHDFK
WKHP KRZ WR RUJDQL]H WKHPVHOYHV ´7KLV ZRUN KHUH >LQ 0DQDJXD@ LV QRW
UHDOO\ JLYLQJ >«@ )RU VRPHRQH ZKR LV DQ DFWLYLVW WKLV LV QRW D YHU\ JRRG
MREµ VKH H[SODLQHG 7KH ZD\ RI WDONLQJ DERXW WKHLU ZRUN IRU JRYHUQPHQW
RIILFLDOV DQG WR FODLP WKHUH LV D ¶UHDO ZRUOG· RXWVLGH RI LW WR ZKLFK RQH WUXO\
EHORQJV LV VRPHWKLQJ , IRXQG WR EH W\SLFDO DPRQJ 6DQGLQLVWDV KROGLQJ
KLJKHU SRVLWLRQV ,W LV VXFK VWDWHPHQWV ZKLFK PDNH PH UHDOL]H WKDW DW
OHDVW IRU WKHP WKHLU ZRUN LV QRW WKH KLJKHVW IRUP RI H[HUWLQJ SROLWLFDO
SRZHU DQG RWKHU IRUPV KDYH WR EH WDNHQ LQWR FRQVLGHUDWLRQ ZKHQ WDONLQJ
DERXW 6DQGLQLVWD UXOH
7KH ZRUN RI 6DQGLQLVWD RIILFH KROGHUV LV YDOXHG VR OLWWOH DPRQJ VRPH
6DQGLQLVWDV WKDW WKRVH ZKR GR VHH DW OHDVW VRPH YDOXH LQ LW VHHP WR IHHO WKH
QHHG WR H[SODLQ WKLV 7KH FREEOHU DQG 6DQGLQLVWD $UPDQGR 0DUWtQH] LQ WKH
YLOODJH RI /D (VSHUDQ]D (O 5DPD IHOW WKH QHHG WR VD\ 2UWHJD 6DDYHGUD ZDV
QHFHVVDU\ IRU 6DQGLQLVPR , GLG QRW DVN KLP KRZ KH YDOXHG WKH ZRUN RI
WKRVH LQ KLJK JRYHUQPHQW RIILFHV RU DQ\WKLQJ UHODWHG ZKHQ KH VDLG

, KDYH >«@ VRPHWKLQJ ZKLFK PDNHV PH VWD\ ZLWK WKH )UHQWH

6DQGLQLVWD , DP FRQYLQFHG IRU WKH )UHQWH 6DQGLQLVWD WR EH
DEOH WR JLYH VRPHWKLQJ LW QHHGV WR KDYH SRZHU LQ LWV KDQGV ,W
FDQ QRW JLYH DQ\WKLQJ ZLWKRXW KROGLQJ SRZHU >«@ , NQRZ WKH
UROH RI RXU OHDGHU 'DQLHO 2UWHJD >6DDYHGUD@ LV IXQGDPHQWDO
>«@ ,Q WKH VHQVH RI EHLQJ D OHDGHU :H FDQ KDYH D WRQ RI SHR
SOH LQWHOOLJHQW ZLWK DOO FDSDFLWLHV EXW WKH\ GRQ·W KDYH WKH
H[SHULHQFH RU FKDULVPD RI 'DQLHO 2UWHJD >6DDYHGUD@ :H KDYH
VHHQ LW RYHU WLPH ² GXULQJ ZLQWHU DQG VSULQJ RI WKH SURFHVV
RI RXU VWUXJJOH

,Q RWKHU FRXQWULHV DQGRU FRQWH[WV LW LV XQOLNHO\ WKLV VWDWHPHQW ZRXOG

7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

KDYH EHHQ PDGH DV LW FRQWDLQV OLWWOH EH\RQG ZKDW LV D IXQGDPHQWDO SDUW RI

JRYHUQPHQW V\VWHPV RQH QHHGV WR KDYH D KLJKUDQNLQJ SRVLWLRQ ZLWKLQ WKH
VWDWH OHDGHUVKLS LQ RUGHU WR H[HUW SRZHU RU ¶JLYH VRPHWKLQJ· DV 0DUWtQH]
FDOOHG LW

3RZHU WKURXJK IRUPDO RUJDQL]DWLRQV LQ FLYLO VRFLHW\

$QRWKHU DWWUDFWLYH ZD\ RI H[HUWLQJ SRZHU LV ZRUNLQJ WKURXJK RUJDQL]D

WLRQV RI FLYLO VRFLHW\ &LYLO VRFLHW\ FRQVLVWV PDLQO\ RI D YDVW UDQJH RI 1*2V
DQG VRPH ODERU XQLRQV PRVWO\ GLUHFWO\ FRQQHFWHG ZLWK WKH )6/1 1*2V DQG
ODERU XQLRQV XVXDOO\ WU\ QRW WR SRUWUD\ WKHPVHOYHV DV 6DQGLQLVWDV \HW LW LV
QRW WUHPHQGRXVO\ GLIILFXOW WR ILQG RXW ZKHQ WDONLQJ WR PHPEHUV LQGLYLGX
DOO\ 7KH FOHDUHVW H[DPSOH IRU PH RI WU\LQJ WR H[HUW SRZHU RQ WKH SDUW RI
6DQGLQLVWD ODERU XQLRQVZRUNHUV ZDV WKH WUDQVSRUW ZRUNHU VWULNH RI 
,Q RUGHU WR UHFHLYH JRYHUQPHQW KHOS LQ WLPHV RI D VSLNH LQ SHWURO SULFHV
6DQGLQLVWD WUDQVSRUW ZRUNHUV ODUJHO\ VKXW GRZQ DOO PDLQ WUDQVSRUWDWLRQ
XQWLO WKH JRYHUQPHQW DFFHSWHG D FRPSURPLVH VHH DOVR ³ 7UDQVSRUW ZRUNHU
VWULNH 0D\   S  
6HYHUDO RI WKH 1*2V KDYH IRUHLJQ SDUWLFLSDWLRQ DQG IXQGLQJ ,Q VRPH
FDVHV WKLV PD\ EH D IDFWRU LQ ZK\ WKH\ PD\ EH UHOXFWDQW WR VKRZ WKHLU SDUW\
DIILOLDWLRQ RSHQO\ $ ODUJH SHUFHQWDJH KDV D PDMRULW\ RU H[FOXVLYHO\ 6DQ
GLQLVWDV ZRUNLQJ IRU WKHP 'HSHQGLQJ RQ WKH GHJUHH WKH SDUWLFLSDQWV DUH
KRQHVW WR RQHDQRWKHU DERXW WKHLU WUXH DIILOLDWLRQ DQG WKH ODFN RI IHDU RI EH
LQJ ODEHOHG DV 6DQGLQLVWD DJHQWV WKH\ WU\ WR SXVK IRU SURJUDPV WKH\ VHH DV
EHLQJ LQ OLQH ZLWK WKH 6DQGLQLVWD LGHRORJ\ 7KH RULJLQ RI WKH SDUW\SROLWLFDO
EDFNJURXQG RI PDQ\ 1*2V OLHV LQ WKH HYHQWV VXUURXQGLQJ WKH FKDQJH RI
SRZHU LQ  0DQ\ 6DQGLQLVWDV WULHG WR FRQWLQXH WKHLU ZRUN LQ WKH 1*2
VHFWRU ¶*RYHUQLQJ IURP EHORZ· VHH DOVR ³ 7KH )6/1 DV DQ RSSRVLWLRQ IRUFH
S  LQ WKLV ZD\ LV QRW RQO\ D VWUDWHJ\ XVHG LQ WKH SDVW ZKHQ 6DQGLQLVWDV
ZHUH QRW LQ SRZHU ,Q RUJDQL]DWLRQV VXFK DV WKH )XQGDFLyQ SDUD OD $XWRQRPtD
\ HO 'HVDUROOR GH OD &RVWD $WOiQWLFD GH 1LFDUDJXD )$'&$1,& RU WKH 6HUYLFLR
GH ,QIRUPDFLyQ 0HVRDPHULFDQR VREUH $JULFXOWXUD 6RVWHQLEOH 6,0$6 WKHUH DUH
WR WKLV GD\ SHRSOH ZKR DUH LQ OLQH ZLWK WKH SDUW\ DQG ZKR WKURXJK LW WU\
WR LQIOXHQFH FLYLO VRFLHW\ DFFRUGLQJ WR SDUW\ LGHDOV 9HU\ VHOGRP GR WKH\
DFWLYHO\ SUHVHQW WKHPVHOYHV DV 6DQGLQLVWDV 6LPLODU WR P\ VXUSULVH DERXW
%ODQGyQ 0RQWHQHJUR·V FRQWLQXHG LQYROYHPHQW ZLWK JUDVVURRW DFWLYLVP ,
ZDV DVWRQLVKHG WR GLVFRYHU WKDW PDQ\ RI WKRVH ZKR KDG UHDFKHG KLJK OHYHO
SRVLWLRQV ZLWKLQ RU FORVH WR WKH JRYHUQPHQW GHFLGHG WKH\ OLNHG WR FRQWLQXH
 6DQGLQLVWD SURMHFWV RI FKDQJH

LQIOXHQFLQJ VRFLHW\ WKURXJK WKH 1*2OHYHO 6XFK D FDVH LV *XLPDU $PLQWD

$ULDV D 6DQGLQLVWD ZKR PRYHG EHWZHHQ GLIIHUHQW KLJKOHYHO JRYHUQPHQW
RIILFHV GXULQJ P\ WLPH LQ 1LFDUDJXD 6KH HPSKDVL]HG VKH FRQWLQXHG WR
ZRUN LQ WKH FRPPXQLW\ UDGLR VWDWLRQ HYHQ DIWHU VKH WRRN RQ D SRVLWLRQ LQ
WKH WRZQ JRYHUQPHQW VHH DOVR ³ *XLPDU $PLQWD $ULDV S  

3RZHU WKURXJK WKH &3&V

$QRWKHU QHZ RSWLRQ ZKLFK GLG QRW H[LVW GXULQJ WKH  \HDUV RI 6DQGLQLVWDV
LQ RSSRVLWLRQ LV WKH SDUWLFLSDWLRQ LQ &RQVHMRV GH 3RGHU &LXGDGDQR &3&V 
6LQFH LWV LQFHSWLRQ LQ  WKH &3&V SURPRWH JRYHUQPHQW SURJUDPV LQ
WKHLU ORFDO DUHD 2IILFLDO VSRNHVSHRSOH RI WKH )6/1 VXFK DV )RQVHFD 7HUiQ
E  FODLP WKDW ZKLOH LQVSLUHG E\ WKH GLUHFW GHPRFUDF\ H[LVWLQJ LQ
&XED WKH 1LFDUDJXDQ PRGHO RI GHPRFUDF\ ZLOO DOZD\V EH GLIIHUHQW GXH
WR LWV GLIIHUHQW KLVWRU\ $FFRUGLQJ WR &XDGUD 1~xH] DQG )RQVHFD 7HUiQ
D  WKH &3&V DUH PHDQW WR IDOO XQGHU SDUW  RI WKH SURMHFW RI D 6RFLDOLVP
IRU WKH VW &HQWXU\ 7KH FUHDWLRQ RI WKH &3&V ZDV RQH RI WKH PRVW WDONHG
DERXW LVVXHV LQ WKH ILUVW \HDU RI 2UWHJD 6DDYHGUD·V SUHVLGHQF\
,W VWDUWHG ZLWK WKH SDVVLQJ RI D ODZ RQ FLWL]HQ SDUWLFLSDWLRQ LQ WKH
SDUOLDPHQW LQ -DQXDU\  7KLV ZDV DSSURYHG E\ ERWK RSSRVLWLRQ SDUWLHV
DQG WKH )6/1 7KH /LEHUDO 3/& DW WKH WLPH ZHQW EDFN DQG IRUWK EHWZHHQ
DOO\LQJ ZLWK WKH )6/1 DQG WKH $OLDQ]D /LEHUDO 1LFDUDJHQVH $/1  HYHQ JRLQJ
DV IDU DV FRQVLGHULQJ WKH FUHDWLRQ RI D FRPPRQ QHZ /LEHUDO SDUW\ 3DQWRMD
DQG 0DUHQFR   (YHU\RQH LQLWLDOO\ VDZ WKH LGHD RI FLWL]HQ SDUWLFLSDWLRQ
DV WKH )6/1 UHDFKLQJ RXW WR RWKHU JURXSV DQG SDUWLHV :KHQ WKH &3&V ZHUH
DQQRXQFHG D IHZ PRQWKV ODWHU ZLWK UHIHUHQFH WR WKH ODZ DOUHDG\ SDVVHG
E\ SDUOLDPHQW LW ZDV VHHQ E\ OHDGLQJ RSSRVLWLRQ SROLWLFLDQV DV WU\LQJ WR
PHUJH VWDWH DQG SDUW\ 7KH )6/1 FODLPV WKH LQVWDOODWLRQ RI WKH &3&V LV
RQO\ RQH RI VHYHUDO VWHSV WR HVWDEOLVK GLUHFW GHPRFUDF\ WR UHSODFH WKH
FXUUHQW UHSUHVHQWDWLYH GHPRFUDF\ 2WKHU VWHSV LQFOXGH WKH HVWDEOLVKPHQW
RI SOHELVFLWHV LQ PDWWHUV RI VWUDWHJLF LPSRUWDQFH DQG HYHQWXDOO\ ZKHQ WKH
RSSRVLWLRQ ORVHV WKH PDMRULW\ LQ SDUOLDPHQW PDNLQJ WKH &3&V SDUW RI WKH
OHJLVODWLYH EUDQFK &XDGUD 1~xH] DQG )RQVHFD 7HUiQ D 
7KH &3&V ZHUH VWDUWHG LQ VSLWH RI WKH RSSRVLWLRQ DQG KDYH HYHU VLQFH
EHHQ DFFXVHG E\ WKH SDUOLDPHQWDU\ RSSRVLWLRQ DV EHLQJ QRWKLQJ EXW 6DQ
GLQLVWD FRXQFLOV DQG UHPDUNDEO\ VLPLODU LQ WKHLU VWUXFWXUH WR &RPLWpV GH
'HIHQVD 6DQGLQLVWD &'6V RI WKH V VHH DOVR ³ 3RSXODU SDUWLFLSDWLRQ DQG
GLUHFW GHPRFUDF\ S   ,Q WKH YLHZ RI RSSRVLWLRQ SDUWLHV WKH &3&V DUH WKH
$ ORFDO KHDGTXDUWHUV RI WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 LQ
D VXEXUE RI /HyQ VKRZV WKH VORJDQ RI ´>QDWLRQDO@ UHFRQFLOLDWLRQ SHDFH DQG
ZRUN ZHOIDUHµ XVHG LQ WKH  FDPSDLJQ

VDPH DV WKH &'6 ² ZKLFK WKH\ EHOLHYH ZHUH RQO\ FUHDWHG WR FRQWURO FLWL]HQV
$GGLWLRQDOO\ WKH\ WKLQN WKH\ DUH WR H[HUW SRZHU E\ WKH SUHVLGHQF\ LQ D
ZD\ ZKLFK FLUFXPYHQWV SDUOLDPHQW 5RVDULR 0XULOOR 2UWHJD 6DDYHGUD·V
ZLIH DQG QDWLRQDO FRRUGLQDWRU RI WKH &RPPXQLFDWLRQ &RXQFLO RI WKH &3&V
GHVFULEHG WKH &3&V LQ -XO\  LQ WKLV ZD\
7KH &RQVHMRV GH 3RGHU &LXGDGDQR DUH LQ UHDOLW\ WKH HQODUJHPHQW
DQG SXWWLQJ LQWR SUDFWLFH RI D SROLF\ RI D SURSRVDO RI D FRP
PLWPHQW >«@ RI QDWLRQDO UHFRQFLOLDWLRQ DQG XQLW\ DPRQJ 1L
FDUDJXDQV ZKR FDQ PDNH XVH RI WKLV RUJDQL]DWLRQDO IRUP LQ
RUGHU WR SDUWLFLSDWH LQ DQG WR PDNH XVH RI WKHLU ULJKW WR GH
FLGH XSRQ WKH SURJUDPV RI WKH JRYHUQPHQW 6DQGRYDO 
RZQ WUDQVODWLRQ 
,Q RUGHU WR SUHYHQW WKH RSSRVLWLRQ GRLQJ DZD\ ZLWK WKH &3&V E\ SDVVLQJ
QHZ ODZV 2UWHJD 6DDYHGUD RUGHUHG E\ SUHVLGHQWLDO GHFUHH WKDW WKH &3&V
ZHUH WR EH LQFRUSRUDWHG LQWR WKH &RQVHMR 1DFLRQDO GH 3ODQLILFDFLyQ (FRQyPLFD
\ 6RFLDO &213(6  SDUW RI WKH H[HFXWLYH EUDQFK 'LDULR *UDQPD   $I
WHU VRPH UHVFKHGXOLQJ WKH &3&V ZHUH LQLWLDOO\ SODQQHG WR EH FRQILUPHG
RQ 1RYHPEHU WK  EXW WKH SDUOLDPHQWDU\ RSSRVLWLRQ YRWHG LQ PLG
1RYHPEHU IRU D ODZ WKDW SUHYHQWHG WKH HVWDEOLVKPHQW RI &3&V DV SDUW RI
WKH VWDWHVWUXFWXUH IRUFHG WKH &3&V WR EHFRPH SDUW RI WKH )6/1 VWUXFWXUH
FXW WKHP RII VWDWH IXQGLQJ DQG SUHYHQWHG VWDWH VHFUHWDULHV IURP WDNLQJ


7KH JDUGHQHU DQG 6DQGLQLVWD )pOL[ *yPH] 0RUDOHV VD\V WKDW KLV &RQVHMR GH
3RGHU &LXGDGDQR &3& LV RSHQ WR RSSRVLWLRQ PHPEHUV EXW DOVR WKDW WKH
6DQGLQLVWD PHPEHUV KRSH WKLV ZLOO HYHQWXDOO\ OHDG WR D VWUHQJWKHQLQJ RI
6DQGLQLVPR

RUGHUV IURP WKH &3&V 7KH 6DQGLQLVWD GHOHJDWHV VDLG WKH &3&V ZRXOG EH HV
WDEOLVKHG QR PDWWHU ZKDW WKH ODZ VDLG ´%HFDXVH WKH SXEOLF KDV WKH ULJKW WR
SDUWLFLSDWH LQ JRYHUQPHQW GHFLVLRQV LQ ZKDWHYHU ZD\ WKH\ ZDQWµ 3DQWRMD
 RZQ WUDQVODWLRQ  ,Q -DQXDU\  WKH &RUWH 6XSUHPD GH -XVWLFLD &6-
ILQDOO\ UXOHG 2UWHJD 6DDYHGUD GLG KDYH WKH SRZHU WR HVWDEOLVK WKH &3&V DQG
WR GHILQH WKH OLPLWV RI WKHLU SRZHU DQG WKDW SDUOLDPHQW KDG QR ULJKW WR
RYHUUXOH KLP RQ WKDW LVVXH /D 3UHQVD  
7KH YLHZ RI WRS RSSRVLWLRQ SROLWLFLDQV LV DOVR UHIOHFWHG E\ VRPH /LEHU
DOV RQ D JUDVVURRWV OHYHO 0\ H[SHULHQFH VKRZV WKDW YLHZV RQ WKH QDWXUH
RI WKH &3&V JR DFURVV SDUW\ OLQHV /LEHUDOV DUH LQYROYHG LQ VRPH &3&V DQG
VRPH 6DQGLQLVWDV DUH DJDLQVW &3&V 7KH &3&V DW D ORFDO OHYHO ZRUN FURVV
SROLWLFDOO\ LQ VRPH SODFHV )pOL[ *yPH] 0RUDOHV D JDUGHQHU RULJLQDOO\ IURP
&KLQDQGHJD ZKR QRZ ZRUNV LQ GRZQWRZQ /HyQ ZDV D 6DQGLQLVWD ILJKWHU
GXULQJ WKH UHYROXWLRQDU\ LQVXUUHFWLRQ RI  DQG LV ZHOO FRQQHFWHG WR WKH
)6/1 OHDGHUVKLS LQ /HyQ 2YHU DQ H[WHQGHG SHULRG ZH GLVFXVVHG ZK\ PDQ\
RSSRVLWLRQ 1LFDUDJXDQV KDG QRW EHHQ FRQYLQFHG E\ WKH JRYHUQPHQW WR
MRLQ WKHP HYHQ WKRXJK WKH PDLQ DUJXPHQW DJDLQVW WKH )6/1 WKH SRVVLEOH
UHVWDUW RI WKH ZDU KDG EHHQ SURYHQ QRW WR EH DQ LVVXH +H ZDV TXLWH QHJD
WLYH DERXW WKH VXEMHFW DQG EHOLHYHG LW PXVW VLPSO\ EH LQ WKH 1LFDUDJXDQ
FKDUDFWHU ´7KH 1LFDUDJXDQ LV TXLWH KDUG <RX VHH WKH JRYHUQPHQW GRHV
DOO WKLV $QG VWLOO ² WKH\ GRQ·W MRLQ XVµ $W DQRWKHU WLPH KH WULHG WR FRQ
YLQFH PH WKH &3&V DOVR ZHUH RSHQ WR WKH RSSRVLWLRQ +H H[SODLQHG WR PH
KRZ KLV &3& LQ FRQVLVWHG RI  SHRSOH RI ZKLFK ILYH ZHUH QRQ6DQGLQLVWDV
DQG KRZ WKH LGHD ZDV WR FRQYHUW WKH RSSRVLWLRQ PHPEHUV WR EH VXSSRUWHUV


*ORULD 0DUtD )RQVHFD JHQHUDO FRRUGLQDWRU RI RQH &RQVHMR GH 3RGHU &LXGDGDQR
&3& LQ 0DQDJXD VD\V WKDW WKH &3&V ZHUH ERUQ RXW RI QHFHVVLWLHV RI WKH
1LFDUDJXDQ SRRU UDWKHU WKDQ SDUW\SROLWLFDO PRWLYDWLRQV

RI WKH JRYHUQPHQW ELW E\ ELW ² EXW QRW WKURXJK IRUFH

6HH VKH >SRLQWLQJ DW QDPH RI RQH RI WKH &3& PHPEHUV LQ KLV

ERRN@ KDV EHHQ ZLWK SDUW\ ; DQG SDUW\ < $QG ZH GRQ·W VD\
DQ\WKLQJ EXW RI FRXUVH ZH KRSH WKDW VRPH GD\ VKH UHDOL]HV
WKDW LW LV WKH )UHQWH WKDW UHSUHVHQWV KHU WUXH LQWHUHVWV

:KLOH *yPH] 0RUDOHV VHHPHG WR DW OHDVW LQ SDUW DGPLW WKDW WKH &3&V
DUH FRQQHFWHG PRUH WR WKH )6/1 WKDQ WR RWKHU SDUWLHV WKDW LV QRW FRPPRQ
*ORULD 0DUtD )RQVHFD VLVWHULQODZ RI ,FDEDOFHWD *DUD\ LV JHQHUDO FRRUGL
QDWRU RI WKH &3& LQ KHU QHLJKERUKRRG LQ 0DQDJXD :KHQ , PHW KHU WKH
ILUVW WLPH DQG DVNHG KHU UDWKHU SURYRFDWLYHO\ ZKHWKHU WKH &3&V ZHUH SDUW
RI WKH )6/1 VKH H[SODLQHG WKH FRQQHFWLRQ OLNH WKLV

1R WKH &3&V LV DQ RUJDQL]DWLRQ ERUQ RXW RI WKH QHFHVVLW\ RI

WKH SHRSOH WR EHWWHU WKHLU OLYLQJ FRQGLWLRQV (YHU\RQH LV ZHO
FRPH ZKHWKHU FRPLQJ IURP WKH SDUW\ RU QRW :H GRQ·W DVN
ZKDW SDUW\ WKH\ FRPH IURP QRU GRHV LW LQWHUHVW XV ZKDW WKH\
GR $OO ZH DUH LQWHUHVWHG LQ LV WKDW WKH\ ZDQW WR ZRUN >ZLWKLQ
WKH &3&@ WKDW·V DOO >«@ :KDW KDSSHQV LV WKH SDUWLHV RI WKH
SROLWLFDO ULJKW DUH PROHVWHG E\ WKH IDFW WKDW WKH SRRU SHRSOH RU
JDQL]H WKHPVHOYHV WR H[SUHVV WKHPVHOYHV DQG GHPDQG EHWWHU
FRQGLWLRQV IRU WKHLU OLYHV


3HGUR &HUQD EDUEHU DQG 6DQGLQLVWD IURP (O 5DPD EHOLHYHV WKH SROLWLFDO
5LJKW LV ER\FRWWLQJ LQVWUXPHQWV RI GLUHFW GHPRFUDF\ LQ RUGHU WR GHVWDELOL]H
WKH FRXQWU\

,Q RWKHU DUHDV RI WKH FRXQWU\ WKHUH LV OHVV QRQ6DQGLQLVWD SDUWLFLSD

WLRQ 3HGUR &HUQD EDUEHU DQG 6DQGLQLVWD IURP (O 5DPD H[SODLQHG ZK\ WKH
SROLWLFDO ULJKW GLG QRW ZDQW WR SDUWLFLSDWH

6HH WKH\ GRQ·W ZDQW WR SDUWLFLSDWH LQ DQ\WKLQJ $OO WKH\ ZDQW

LV WR GHVWDELOL]H WKLV FRXQWU\ >«@ EHFDXVH ZKDW WKH\ WUXO\ DUH
RXW IRU LV SRZHU 7KH\ DOUHDG\ ORVW LW EXW LQ VRPH PXQLFLSLRV
WKH\ VWLOO KDYH SRZHU EHFDXVH WKH\ KDYH WKH PD\RU

7KRVH QRQ6DQGLQLVWDV ZKR FKRVH WR MRLQ D &3& GR QRW VHHP WR IRFXV RQ

WKHLU RZQ SROLWLFDO SDUW\ DV UHODWHV WR WKHLU &3&UHODWHG DFWLYLWLHV 7KH
SODFHV ZLWK DOPRVW H[FOXVLYHO\ )6/1 6DQGLQLVWD GRPLQDWHG &3&V VHHP WR
EH WKH PDMRULW\ %\  WKH )6/1 OHDGHUVKLS DFFHSWHG LW DV D VWUDWHJLF
HUURU WKDW WRR PDQ\ )6/1 OHDGHUV KDG WDNHQ SRVLWLRQV LQ ORFDO &3&V ZLWK
WKH H[FHSWLRQ RI VRPH DUHDV ZKHUH DQ HIIRUW KDG EHHQ PDGH WR DYRLG WKLV
&XDGUD 1~xH] DQG )RQVHFD 7HUiQ D  
7KRVH 6DQGLQLVWDV SDUWLFLSDWLQJ LQ &3&V , WDONHG WR VHHPHG WR WKLQN LW
QHFHVVDU\ WR KDYH FRQWURO RQ WKH SDUW RI WKH )6/1 ,Q 0R\RJDOSD , VSRNH WR
%ODQFD 0DUtD 1HOOD DW WKH WLPH D KHDYLO\ LQYROYHG 6DQGLQLVWD &3& PHPEHU
6KH OLNH VHYHUDO RWKHU JUDVVURRW )6/1 6DQGLQLVWDV VDZ WKH SUREOHP IURP
WKH RWKHU VLGH

2I FRXUVH WKH\ FDQ DOO FRPH DQG SDUWLFLSDWH DQG ZRUN ZLWK
XV« 7R UXOH KRZHYHU WKDW·V ZKDW ZH GR :H KDYHQ·W EHHQ


%ODQFD 0DUtD 1HOOD KDV RUJDQL]HG KHU ORFDO &RQVHMR GH 3RGHU &LXGDGDQR &3&
LQ D VPDOO SDUW RI 0R\RJDOSD 2PHWHSH 6KH LV KDSS\ WR OHW ULJKWZLQJHUV
KHOS LQ WKH &3& EXW LV QRW ZLOOLQJ WR JLYH XS SRZHU WR WKHP DIWHU WKH\ DOUHDG\
KDYH EHHQ LQ FKDUJH GXULQJ ´WKH  \HDUV RI QHROLEHUDOLVPµ 6KH KDV DOVR
EHHQ LQ FRQIOLFW ZLWK WKH JRYHUQPHQW RYHU WKH DYDLODELOLW\ RI SLJV WR WKRVH
&3&V WKDW GR QRW KDYH ODQG VXFK DV KHUV

ZDLWLQJ  \HDUV XQWLO ILQDOO\ ZLQQLQJ RQO\ WR OHW WKHP FRQ

WLQXH WR UXOH

0DQ\ RI WKRVH 6DQGLQLVWDV ZKR SDUWLFLSDWH LQ WKH &3&V SUHYLRXVO\ SDUWLFL

SDWHG LQ WKH &'6V \HW PRVW &36PHPEHUV GHQ\ WKH\ DUH WKH VDPH 3HGUR
&HUQD SDUWLFLSDWHG LQ ERWK DQG JDYH D IDLUO\ DYHUDJH H[SODQDWLRQ RI WKH
GLIIHUHQFH

7KH REMHFWLYH EHIRUH >RI WKH &'6V@ ZDV WR ILJKW WKH DUPHG
HQHP\ 7RGD\ WKH &3&V DUH DERXW KRZ WR VKDUH ZRUN« WR
ZRUN WR KHOS WR RUJDQL]H D SLHFH RI VRFLDO ZRUN OLNH >ZKHQ
RQH QRWLFHV@ ´7KLV VWUHHW KHUH GRHVQ·W ZRUN DQ\PRUH OHWV
ZULWH D SURSRVDO WR WKH QDWLRQDO DVVHPEO\ >WR KDYH LW IL[HG@
%HIRUH LW ZDV GLIIHUHQW ZH KDG WR ORRN RXW EORFN E\ EORFN
EHFDXVH WKH HQHP\ ZDV DURXQG DQG KH ZDV DUPHG 7RGD\
WKDW·V QRW WKH FDVH 1RZ LW·V GLIIHUHQW ,W·V PRUH GHPRFUDWLF
>«@ 2QH RI WKH WKLQJV WKH &3&V GR KHUH QRZ LV WR EXLOG UXUDO
VFKRROV WRJHWKHU ZLWK WKH -XYHQWXG 6DQGLQLVWD EXW DV WKH
PD\RU KHUH DOZD\V LV /LEHUDO ZH GR QRW KDYH JRRG DFFHVV
7KDW·V ZK\ ZH ZDQW WKH PD\RU WR JLYH LW PRUH WKUXVW 5LJKW


 6DQGLQLVWD SURMHFWV RI FKDQJH

QRZ ZH GR QRW KDYH ZDWHU KHUH MXVW >D IHZ@ ZHOOV 7KDW ZRXOG
EH D SURMHFW IRU WKH &3&V WR WDNH XS IRU WKH JRYHUQPHQW
,W LV H[WUHPHO\ FRPPRQ WKDW WKH H[SODQDWLRQ RI GLIIHUHQFH EHWZHHQ WKH
WZR GHDOV PDLQO\ ZLWK WKH KLVWRULF FLUFXPVWDQFHV UDWKHU WKDQ D GLIIHUHQFH
LQ RUJDQL]DWLRQDO VWUXFWXUH 0DQ\ )6/1 6DQGLQLVWDV DUH QRW LQYROYHG LQ
WKH &3& RI WKHLU QHLJKERUKRRG 1HLWKHU &DUROLQD )RQVHFD ,FDEDO]HWD·V QRU
KHU SDUHQWV RU KHU XQFOH %D\DUGR -RVp )RQVHFD *DOR SDUWLFLSDWH LQ WKHLU
ORFDO &3& PHHWLQJV DOWKRXJK WKH\ DOO DUH VHULRXVO\ LQWHUHVWHG LQ HQJDJLQJ
LQ SROLWLFV ORFDOO\ DQG DOWKRXJK QRQH KDYH DFKLHYHG WKLV WKURXJK WKH SDUW\
KLHUDUFK\ )RQVHFD *DOR GLVDJUHHV ZLWK PHPEHUV RI WKH ORFDO &3& RQ SROLW
LFDO JURXQGV +H H[SODLQHG WKDW PRVW RI WKRVH SDUWLFLSDWLQJ RQO\ GLG VR
EHFDXVH WKH )6/1 ZDV LQ SRZHU 2QH PDLQ FULWLFLVP 6DQGLQLVWDV VHHP WR
KDYH RI WKH &3&V LV KRZ WKH\ IXQFWLRQ DW D KLJKHU OHYHO 7KH ORFDO &3&V HOHFW
UHSUHVHQWDWLYHV IRU LQFUHDVLQJO\ KLJKHU OHYHOV XQWLO DW WKH GHSDUWPHQWDO
OHYHO LW EHFRPHV WKH GHSDUWPHQWDO VHFUHWDU\ RI WKH )6/1 ZKR LV LQ FKDUJH
RI SDVVLQJ RQ LQIRUPDWLRQ WR DQG IURP WKH KLJKHVW OHYHO 5RVDULR 0XULOOR
, ZDV SUHVHQW DW D IHZ &3& PHHWLQJV LQ /HyQ DQG PDQ\ WLPHV , MXVW
FDPH E\ WKH PHHWLQJ SODFH WR KHDU ZKHWKHU DQ\WKLQJ QHZ KDG KDSSHQHG
0\ LQLWLDO LPSUHVVLRQ ZDV WKH SRZHU RI WKH &3&V ZDV OLPLWHG WR WKH ORFDO
DQG EH\RQG WKDW WKH\ ZHUH MXVW UHFHLYLQJ RUGHUV IURP KLJKHU XS 7KH
&3&V PHPEHUV PHQWLRQHG DERYH DOVR VHHPHG WR GLVWLQJXLVK EHWZHHQ SDU
WLFLSDWLQJ LQ D &3& DQG H[HUWLQJ SRZHU DV WZR VHSDUDWH SURFHVVHV 0\
XQGHUVWDQGLQJ RI WKH LPSRUWDQFH RI WKH &3&V FKDQJHG VRPHZKDW RYHU
WLPH $V SDUW RI WKH HOHFWLRQ FDPSDLJQ  PDQ\ )6/1 FDQGLGDWHV IRU FLW\
FRXQFLO PHPEHUV VLJQHG D SDSHU VWDWLQJ WKH\ ZRXOG UHVSHFW WKH GHFLVLRQV
RI WKH &3&V +DOI D \HDU ODWHU WKH QHZO\ HOHFWHG PD\RU RI /HyQ 0DQXHO
&DOGHUyQ HQGHG XS LQ DQ RSHQ GLVSXWH ZLWK WKH &3&V RI /HyQ WU\LQJ WR
UHWUDFW VRPH RI WKH SRZHUV JLYHQ WR WKHP 7KH FRQIOLFW ZDV HYHQWXDOO\ VHW
WOHG EXW WKH &3&V VKRZHG WKH\ ZHUH LQGHSHQGHQW GHFLVLRQ PDNLQJ ERGLHV
6HYHUDO 6DQGLQLVWDV , VSRNH ZLWK SUHGLFWHG WKDW HYHQWXDOO\ WKH &3&V ZRXOG
WDNH RYHU DV WKH QHZ UHSUHVHQWDWLYHV RI FLYLO VRFLHW\ WKH SDUW 1*2V KDYH
UHSUHVHQWHG ´:KDW ZH ZLOO VHH LV D GLIIHUHQW FLYLO VRFLHW\ 7KLV LV WKH QHZ
FLYLO VRFLHW\ WKDW LV HPHUJLQJµ )DOJXQL *XKDUD\ H[SODLQHG
7KH LQVWDOODWLRQ RI WKH &3&V LV QRW XQSUREOHPDWLF DV WKH )6/1 RIILFLDOO\
UHFRJQL]HV $FFRUGLQJ WR WKHP WZR UHDVRQV DUH WR EODPH 2QH UHDVRQ LV WKH
KLVWRU\ RI 1LFDUDJXD LQ ZKLFK WKLV LQVWLWXWLRQ KDV QHYHU H[LVWHG EHIRUH 7KH
RWKHU UHDVRQ JLYHQ LV WKH OLWWOH LPSRUWDQFH WKDW )6/1 PLOLWDQWV DWWULEXWH
WR WKH HVWDEOLVKPHQW RI WKH &3&V DV WUXH UHSUHVHQWDWLRQV RI QHLJKERUKRRG
7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

RSLQLRQV DQG WKH\ DUH XVHG DV WRROV IRU SROLWLFDO PDQHXYHULQJ &XDGUD
1~xH] DQG )RQVHFD 7HUiQ D   7KLV LV DOVR ZKDW , KHDUG IURP WKRVH
SHRSOH FORVH WR WKH 6DQGLQLVWD FDXVH ZKR GLG QRW IRUP SDUW RI WKHLU &3&
,FDEDOFHWD *DUD\ VWDWHG

:HOO VHH WKLV ORFDO &3& KHUH LV RQH WKDW FRQVLVWV RI SDUW\
PLOLWDQWV ZKR ZRUNHG ZLWK WKH SDUW\ GXULQJ WKH  \HDUV
7KH\ DUH SHRSOH WKH\ IHHO WKH\ FDQ WUXVW
>«@ 1RZ , GRQ·W NQRZ LI WKH\ GR LW IRU IUHH RU ZKHWKHU
WKH\ DUH SDLG RU JHW VRPH VXEVWLWXWH IRU WKHLU ZRUN 2I FRXUVH
, NQRZ LW ZRXOG EH RQO\ IDLU WR UHFHLYH D OLWWOH
$W RQH WLPH ZH KDG D SUREOHP ZLWK WKH ZDWHU >IORZ@
DQG ZH VWDUWHG FROOHFWLQJ VLJQDWXUHV DQG WKH ZDWHU FRPSDQ\
DVNHG XV ´$UH \RX D &3&"µ DQG ZH DQVZHUHG ´(KP \HDK RI
FRXUVH :H DUH FLWL]HQV PDNLQJ XS D FRPPLWWHH WR JDLQ SRZHU
LQ WKDW VHQVH ZH DUH D &3&µ 7KHQ WKH\ WROG XV ´<RX VKRXOG
KDYH WKH VLJQDWXUH RI VR DQG VRµ 6KH LV RI WKH RIILFLDO &3&
KHUH :H ZHQW DQG DVNHG KHU DQG H[SODLQHG ZKDW ZH ZHUH
GRLQJ DQG VKH JDYH XV WKH 2. DQG VDLG ´$K WKDW·V JRRGµ
7KHVH SHRSOH XVH LW IRU WKHLU SROLWLFDO FDUHHU ,W LV VR WKH\
FDQ VKRZ ´, KDYH EHHQ ZRUNLQJ LQ WKH &3& RI VR DQG VRµ

,W VHHPV WKDW IRU ,FDEDOFHWD *DUD\ LW ZDV QRW VR PXFK D SUREOHP ZKR PDGH
XS WKH ORFDO &3& RU WKDW VKH KDG FRQFUHWH SUREOHPV ZLWK WKRVH LQYROYHG
DV PXFK DV VKH ZDV ERWKHUHG WKDW KHU FDPSDLJQ WR EHWWHU WKH IORZ RI WKH
GULQNLQJ ZDWHU LQ WKH QHLJKERUKRRG FRXOG KHOS VRPHRQH·V SROLWLFDO FDUHHU

3RZHU WKURXJK LQIRUPDO JURXSV LQ FLYLO VRFLHW\

:KHUHDV WKH IRUPHU WZR JURXSV ODERU XQLRQV DQG 1*2V RIIHU RSSRUWXQL
WLHV IRU 6DQGLQLVWDV WR H[HUW SRZHU ZKLOH KLGLQJ WKHLU SDUW\ DIILOLDWLRQ RU
DW OHDVW QRW GRLQJ LW LQ WKH QDPH RI WKH SDUW\ WKH RSSRVLWH FDVHV H[LVW LQ
ZKLFK WKH QDPH RI WKH SDUW\ LV LQYRNHG ZLWKRXW WKH SDUW\ RIILFLDOV KDYLQJ
DQ\WKLQJ WR GR ZLWK WKH DFWLYLW\ GRQH LQ LWV QDPH
, LQWHUYLHZHG 0DQXHO &RUHD RQH RI WKH IRUPHU VWXGHQWV RI WKH :LOKHOP
3LHFN FDGUH VFKRRO LQ (DVW *HUPDQ\ VHH DOVR ³ &RQQHFWLRQV WR D IRUPHU FHQWHU
S   +H OLYHV LQ D SRRU QHLJKERUKRRG RI 0DQDJXD ,W LV VR SRRU WKDW WKH
WD[L GULYHU ZKR WRRN PH WKHUH GLG QRW GDUH WR GURS PH RII RXWVLGH WKH GRRU
E\ P\VHOI , ZDV DVNHG WR FDOO DKHDG WR PDNH VXUH &RUHD ZDLWHG RXWVLGH
0DQXHO &RUHD EHOLHYHV KH FRQWLQXHV KLV ZRUN DV D 6DQGLQLVWD UHYROXWLRQDU\
E\ KHOSLQJ WR RUJDQL]H D VRFFHU PDWFK IRU \RXQJVWHUV LQ KLV QHLJKERUKRRG

WKH FRS\ VKRS KH RSHUDWHV ,W LV FOHDUO\ D GDQJHURXV DUHD RI 0DQDJXD 2QH

RI WKH ILUVW WKLQJV KH H[SODLQHG ZDV WKDW KH DQG WKH RWKHU 6DQGLQLVWDV LQ
WKH DUHD VWDUWHG DQ RUJDQL]HG VRFFHU PDWFK LQ RUGHU WR JHW FKLOGUHQ RII
WKH VWUHHWV ZKR RWKHUZLVH ZRXOG EH ZDUULQJ VWUHHW JDQJV ,QLWLDOO\ , XQ
GHUVWRRG LW DV D SURJUDP RIILFLDOO\ UXQ E\ WKH JRYHUQPHQW EXW , JUDGXDOO\
FDPH WR XQGHUVWDQG LW ZDV LQ IDFW DFWLYLVWV ZKR GHFLGHG WR SXW WKH VRFFHU
PDWFK WRJHWKHU DQG KDG FKRVHQ WR GR LW LQ WKH QDPH RI ¶6DQGLQLVPR· DV D
UHIOHFWLRQ RI WKHLU LGHDOV /DWHU RQ KH FKDQJHG WKH VWRU\ DQG HPSKDVL]HG
WKH JDPHV ZHUH DOVR RSHQ WR QRQ6DQGLQLVWDV ,W EHFDPH REYLRXV WKDW KH
ZRQGHUHG LI KH VKRXOG KDYH GLVFORVHG DOO WKHVH IDFWV

)RQVHFD *DOR DOVR ZRUNHG LQ VLPLODU ZD\V ZKHQ , PHW KLP +H RUJD
QL]HG 6DQGLQLVWDV ZKR KDG EHHQ DFWLYH GXULQJ WKH UHYROXWLRQDU\ LQVXUUHF
WLRQ DQG ZKR QRZ ZHUH ¶QRW TXLWH ZLWK· WKH FXUUHQW JRYHUQPHQW LQ DQ
RUJDQL]DWLRQ FDOOHG ¶$PLJRV· ,GHRORJLFDOO\ WKHVH SHRSOH ZHUH VWLOO RU RQFH
DJDLQ DUH LQ OLQH ZLWK WKH )6/1 )RQVHFD *DOR·V SURMHFW VSHFLILFDOO\ LQFOXGHG
VRPH UHYROXWLRQDU\ ILJKWHUV ZKR KDG MRLQHG RWKHU SDUWLHV , XQGHUVWRRG
WKDW LQ WKHVH FDVHV WKH LGHD EHKLQG RUJDQL]LQJ WKH SHUVRQ ZDV WKDW VXFK
SHRSOH ZRXOG FRPH EDFN WR WKH SDUW\ LI RQO\ WKHUH ZDV D YLDEOH SDWK WR
GR VR :LWK WLPH , OHDUQHG WKDW ¶QRW EHLQJ ZLWK· WKH SDUW\ MXVW PHDQW WKH\
ZHUH QRW HPSOR\HG RU RWKHUZLVH LQYROYHG LQ WKH GHFLVLRQ PDNLQJ SURFHVVHV
RI WKH FXUUHQW JRYHUQPHQW RU WKH &3&V )RQVHFD *DOR DQG VRPH IULHQGV RI
¶$PLJRV· KDG PDQ\ SODQV RQ KRZ WR KHOS 6DQGLQLVPR DORQJ 2QH RI WKHP
LQYROYHG EXLOGLQJ D FKLOGUHQ·V FHQWHU 7KLV ZRXOG EH GRQH LQ WKH QDPH


:LOOLDP /HLYD &DUGR]D IRXJKW DV D 6DQGLQLVWD GXULQJ WKH UHYROXWLRQDU\ LQ
VXUUHFWLRQ +H MRLQHG D /LEHUDO SDUW\ GXULQJ WKH \HDUV RI QHROLEHUDOLVP DQG
QRZ DJDLQ FDOOV KLPVHOI D 6DQGLQLVWD

RI 6DQGLQLVPR LQ RUGHU WR KHOS WKH SDUW\ LQGLUHFWO\ HDUQLQJ FUHGLELOLW\

DPRQJ WKH \RXQJVWHUV ZKR ZRXOG PDNH XVH RI WKH FHQWHU
$W ILUVW , EHOLHYHG SHRSOH VLPSO\ ZHUH IRUPHG E\ WKHLU SHUVRQDO H[SH
ULHQFH RI WKH V DQG WKHLU OR\DOWLHV IURP WKRVH \HDUV FRXOG QRW FKDQJH
QRZ , GLVFRYHUHG DPRQJ WKRVH QRW FRQQHFWHG WR WKH LQQHU FLUFOHV RI WKH
)6/1 WKH FRPPRQ SUDFWLFH LV WR UHLQYHQW RQHVHOI DV 6DQGLQLVWD UDWKHU WKDQ
SRUWUD\LQJ RQHVHOI DV D /LEHUDO LQ IDYRU RI 6DQGLQLVWD SURJUDPV )RU PDQ\
VXFK D VKLIW UHSUHVHQWV D VHFRQG FKDQJH LQ WKHLU SROLWLFDO DIILOLDWLRQ
:LOOLDP /HLYD &DUGR]D WKH QHLJKERU RI %D\DUGR )RQVHFD DQG RQH RI
WKRVH )RQVHFD *DOR KDG UHFUXLWHG WR KLV SURMHFW ZDV RQH RI IHZ 6DQGLQLVWDV
, PHW ZKR DGPLWWHG KRZ WKLV UHLQYHQWLRQ KDSSHQV $IWHU KH H[SODLQHG KRZ
KH KDG IRXJKW RQ WKH 6DQGLQLVWD VLGH LQ WKH UHYROXWLRQDU\ LQVXUUHFWLRQ KH
ZHQW RQ WR WDON DERXW WKH WLPH DIWHU 

, HQGHG XS LQ  ZLWK DEVROXWHO\ QR EHQHILWV ,W ZDV SDUWLF

XODUO\ KDUG IRU XV 6DQGLQLVWDV WR ILQG ZRUN LQ VRPH EXVLQHVV
>«@ 6R WKHQ >LQ WKH V@ , ZRUNHG IRU WKH $OLDQ]D /LEHUDO
1LFDUDJHQVH >«@ , LPDJLQH PDQ\ RWKHU 6DQGLQLVWDV GLG WKH
VDPH ,Q WKH HQG LW ZRUNHG ZH VSOLW WKH /LEHUDO YRWH« 0DQ\
RI XV KDYH VDLG LW ZDV SDUW RI D WDFWLF %XW KRQHVWO\« LW ZDV
RXW RI QHFHVVLW\ >«@ %XW , KDYH DOZD\V EHHQ 6DQGLQLVWD $QG
, DOZD\V ZLOO EH 6DQGLQLVWD

$QG IRU WKRVH 6DQGLQLVWDV ZKR VWLOO KDG QRW VHHQ D ZD\ WR FRPH EDFN KH


 6DQGLQLVWD SURMHFWV RI FKDQJH

VDLG

, WKLQN 2UWHJD >6DDYHGUD@ VKRXOG FDOO IRU D PHHWLQJ RI DOO WKRVH

6DQGLQLVWDV LQ WKH RWKHU SDUWLHV DQG WHOO WKHP , NQRZ ZK\
\RX ZHQW WKHUH >WR WKH /LEHUDOV@ EXW QRZ FRPH EDFN

, VDZ VHYHUDO VLPLODU SURMHFWV WR ¶$PLJRV· DOWKRXJK , GLG QRW LQYHVWLJDWH

WKHP DV PXFK DV WKLV JURXS 0RVW VXFK JURXSV DUH OHG E\ SHRSOH LQWHQVHO\
LQYROYHG LQ WKH SDUW\ SUHYLRXVO\ EXW ZKR DUH QRZ HLWKHU RXW RI WKH LQQHU
FLUFOHV RU OHIW WKH SDUW\ IRU DQRWKHU JURXS GXULQJ WKH \HDUV ZKHQ WKH )6/1
ZDV LQ SDUOLDPHQWDU\ RSSRVLWLRQ $W RQH SRLQW LQ /HyQ ZKHQ WKHUH ZDV
WDON LQ WKH QHZV RQ ZKHWKHU WKHUH ZRXOG EH DUPHG FRQWUD JURXSV LQ WKH
PRXQWDLQV ZKR ZHUH SUHSDULQJ WR DWWDFN WKH JRYHUQPHQW , ZLWQHVVHG YDUL
RXV JURXSV RI ILJKWHUV IURP WKH UHYROXWLRQ JDWKHU DQG SUHSDUH WR ILJKW ZLWK
WKHP LQ WKH QDPH RI 6DQGLQLVPR 7KH JRYHUQPHQW LQ WKH PHDQWLPH WULHG
WR FDOP HYHU\ERG\ DQG FODLPHG WKH UHSRUWV RI UHEHOV LQ WKH PRXQWDLQV ZHUH
KLJKO\ H[DJJHUDWHG :KDW DOO WKHVH JURXSV KDYH LQ FRPPRQ LV WKH\ DUH
FRPSRVHG RI SHRSOH SUHYLRXVO\ DFWLYH LQ WKH IRUPDO SDUWV RI WKH 6DQGLQLVWD
PRYHPHQWV DQG PRUH RIWHQ WKDQ QRW GXULQJ WKH  LQVXUUHFWLRQ

3RZHU WKURXJK RUJDQL]DWLRQV LQIOXHQFLQJ JRYHUQPHQWV

$QRWKHU JURXS RI RUJDQL]DWLRQV FRQVLVWV RI WKRVH VWURQJO\ 6DQGLQLVWD )6/1

DQG 056  WKDW WU\ WR LQIOXHQFH WKH SROLFLHV RI WKH JRYHUQPHQW )RU PH
WKHVH FXUUHQWO\ FRPH FORVHVW WR UHSUHVHQWDWLRQV RI LGHRORJLFDO WHQGHQFLHV
ZLWKLQ 6DQGLQLVPR 7KH WZR PRVW SURPLQHQW H[DPSOHV , HQFRXQWHUHG DUH
6,0$6 DQG WKH IUHH VRIWZDUH PRYHPHQW $OWKRXJK WKHLU DJHQGDV UHODWH
WR WZR GLIIHUHQW DUHDV LQ WHUPV RI SHUVRQQHO WKH\ DUH FORVHO\ OLQNHG 'H
QLV &iFHUHV ZRUNV IRU 6,0$6 DQG KHDGV RQH RI WKH /LQX[ JURXSV 'XULQJ
P\ WLPH LQ 1LFDUDJXD WKUHH RI WKH PRVW DGYDQFHG SURJUDPPHUV LQ WKH
FRXQWU\ ZHUH KLUHG E\ 6,0$6 ,Q DGGLWLRQ 6,0$6 VSRQVRUV VHYHUDO RI WKH
HYHQWV RUJDQL]HG E\ WKH IUHH VRIWZDUH PRYHPHQW 7KH IUHH VRIWZDUH PRYH
PHQW·V FRUH DJHQGD LV WR FRQYHUW WKH VWDWH DSSDUDWXV SULYDWH EXVLQHVVHV
DQG WKH XQLYHUVLWLHV WR XVH RQO\ RSHQ VRXUFH VRIWZDUH -XVW DERXW DOO RI
WKRVH SDUWLFLSDWLQJ VHH WKHPVHOYHV DV 6DQGLQLVWDV RQ VRPH OHYHO VHH DOVR
³ 3URIHVVLRQDOV DQG 6DQGLQLVPR S   7KH\ RULJLQDOO\ RUJDQL]HG LQ D KDQG
IXO RI VPDOOHU JURXSV HDFK SURPRWLQJ DQG XVLQJ RQH FHUWDLQ YHUVLRQ RI
/LQX[ EXW GXULQJ P\ WLPH LQ 1LFDUDJXD WKH\ MRLQHG IRUFHV WR SXVK WKHLU
FRPPRQ DJHQGD LQ 0DQDJXD $ IHZ SHRSOH ZRUN ZLWK IUHH VRIWZDUH LQ
/HIW WR ULJKW &DUORV $OEHUWR 5RFKD &DVWUR $GROIR )LWRULD %\URQ &RUUDOHV
5LYDV DQG )DOJXQL *XKDUD\ ² PHPEHUV RI WKH WHDP DW 6HUYLFLR GH ,QIRUPDFLyQ
0HVRDPHULFDQR VREUH $JULFXOWXUD 6RVWHQLEOH 6,0$6 , ZDV ZRUNLQJ ZLWK WR
FUHDWH VRIWZDUH IRU WKH 1LFDUDJXDQ VWDWH XQGHU 6DQGLQLVWD FRQWURO XVLQJ
IRUHLJQ DLG PRQH\ 3KRWR 6,0$6

RWKHU ORFDWLRQV ² , WDXJKW FODVVHV LQ /HyQ 7KH JURXSV LQ 0DQDJXD GLG QRW
RIWHQ FRRUGLQDWH ZLWK WKHVH RWKHU JURXSV
'XULQJ D GD\ RI VWUDWHJ\ WDONV IRU WKLV PRYHPHQW WKDW , DWWHQGHG ,
RQO\ KHDUG WKH &RVWD 5LFDQ SDUWLFLSDQW VXJJHVW WU\LQJ WR SXVK WKHLU DJHQGD
WKURXJK XVH RI WKH &3&V 0RVW RWKHUV VHHPHG WR SUHIHU GLUHFW FRQQHFWLRQV
WR EXUHDXFUDWV DQG SROLWLFLDQV WR SXVK WKHLU DJHQGD ,Q WKHLU YLHZ RQH
RI WKHLU PDLQ HQHPLHV DUH WKRVH )6/1 WHFKQLFLDQV ZKR DUH QRW FRQYLQFHG
RI WKH DGYDQWDJHV RI IUHH VRIWZDUH 7KH PHPEHUV RI WKH IUHH VRIWZDUH
PRYHPHQW IUHTXHQWO\ DFFXVH )6/1 WHFKQLFLDQV RI FRUUXSWLRQ RU QRW KDYLQJ
WKH QHFHVVDU\ HGXFDWLRQDO OHYHO WR XQGHUVWDQG D IUHH VRIWZDUH VROXWLRQ
ZRXOG ZRUN EHWWHU IRU WKHP
6,0$6 WULHV WR SURPRWH VXVWDLQDEOH DJULFXOWXUH ZLWK OLWWOH RU QR XVH
RI SHVWLFLGHV 6,0$6 KDV LWV RIILFHV ULJKW QH[W GRRU WR WKH SUHVLGHQWLDO
KRXVH LQ WKH 3DUTXH (O &DUPHQ 0DQDJXD DQG WULHV WR SOD\ D FHQWUDO UROH
LQ FRXQWU\ GHYHORSPHQW WKURXJK WKH XVH RI GHYHORSPHQW IXQGV +HDG RI
6,0$6 *XKDUD\ LV QRW D PHPEHU RI WKH )6/1 DQG LV DW WLPHV KLJKO\ FULWLFDO
EXW RYHUDOO KH LV D VWURQJ VXSSRUWHU RI WKH FXUUHQW JRYHUQPHQW *XKDUD\
H[SODLQHG WKH SDUW\ LQWHUQDO FRQIOLFW KH KDG VHHQ VLQFH WKH V 2QH RI
WKH ILUVW WKLQJV KH VDLG ZDV WKDW KH VHW XS WKH ILUVW DJULFXOWXUDO LQIRUPDWLRQ
V\VWHP LQ WKH ODWH V LQ QRUWKHUQ 1LFDUDJXD EXW WKDW KH ZDV WKHQ
RUGHUHG WR GHOHWH DOO WKH GDWD EHFDXVH WKH SURMHFW KH ZDV LQYROYHG LQ


 6DQGLQLVWD SURMHFWV RI FKDQJH

UHSUHVHQWHG WKH VXVWDLQDEOH DJULFXOWXUH WHQGHQF\ ZKLFK 6,0$6 UHSUHVHQWV

WRGD\ ZKLFK ZDV DQG LV FRQWURYHUVLDO ZLWKLQ WKH )6/1 7KRVH RSSRVHG WR
VXVWDLQDEOH DJULFXOWXUH LQ WKH )6/1 FODLP WKDW LW LV RQO\ D WULFN E\ WKH
8QLWHG 6WDWHV DQG RWKHU LQGXVWULDOL]HG FRXQWULHV WR FRQYLQFH WKLUG ZRUOG
FRXQWULHV WR XVH LQHIILFLHQW DJULFXOWXUDO PHWKRGV LQ RUGHU WR NHHS WKHP
IURP HYHU DFKLHYLQJ WKH VDPH UHVXOWV DV ILUVW ZRUOG FRXQWULHV
,Q WKH VXPPHU RI  WKH GLVDJUHHPHQW EHWZHHQ WKH WZR WHQGHQFLHV
PDQLIHVWHG LWVHOI LQ WKH TXHVWLRQ RI ZKDW FRUQ SURFHVVLQJ SODQW 1LFDUD
JXD VKRXOG EXLOG 2UWHJD 6DDYHGUD DQG 5RVDULR 0XULOOR KDG DOOHJHGO\ DO
UHDG\ YLVLWHG DQ LQGXVWULDO SODQW LQ 9HQH]XHOD DQG 0XULOOR ZDV VDLG WR KDYH
H[FODLPHG ´:H QHHG RQH RI WKHVH LQ 1LFDUDJXDµ DV *XKDUD\ H[SODLQHG
6,0$6 KHOSHG ZULWH DQ DSSOLFDWLRQ IRU D JUDQW WR EXLOG D SODQW WKDW ZRXOG
EH VHW XS ZLWKRXW XVLQJ WUDQVJHQHWLF FRUQ DQG EH HQYLURQPHQWDOO\ VXV
WDLQDEOH
, DP QRW VXUH KRZ PDQ\ RWKHU RUJDQL]DWLRQV RI SURIHVVLRQDOV ZLWK
6DQGLQLVWD OHDQLQJ H[LVW , FDPH DFURVV WKH IUHH VRIWZDUH JURXSV DQG 6,0$6
LQ RWKHU FRQQHFWLRQV LQ ZKHUH , GLG QRW H[SHFW WR ILQG WKHP 7KHUH PD\
RQO\ H[LVW D VPDOO QXPEHU RI VXFK RUJDQL]DWLRQV WRWDO 2QH RUJDQL]DWLRQ
ZKLFK ORRNV VLPLODU EHFDXVH LW ZRUNV LQ WKH VDPH VHFWRU LV WKH &HQWUR SDUD
OD 3URPRFLyQ OD ,QYHVWLJDFLyQ \ HO 'HVDUROOR 5XUDO \ 6RFLDO &,35(6  )RXQGHG
LQ  WKLV 1*2 LV PDLQO\ FRPSURPLVHG RI 6DQGLQLVWD ZRUNHUV RI WKH
0LQLVWU\ RI $JULFXOWXUH RI WKH V 7KH\ FDPH XS ZLWK WKH PRGHO RI WKH
FXUUHQW 6DQGLQLVWD JRYHUQPHQW SURJUDP ¶+DPEUH &HUR· DQG WKRVH ZRUNLQJ
WKHUH DUH PRVWO\ SURIHVVLRQDOV :KHQ , DVNHG )RQVHFD ,FDEDO]HWD·V IDWKHU
)HUQDQGR )RQVHFD ZKR ZRUNV WKHUH ZKDW KH WKRXJKW DERXW WKH FXUUHQW
JRYHUQPHQW KH DQVZHUHG KH ORRNHG DW LW IDYRUDEO\ DQG WKHQ LPPHGLDWHO\
VWDUWHG WR WDON DERXW WKH FRQWULEXWLRQ RI &,35(6

7KH RUJDQL]DWLRQ , ZRUN IRU &,35(6 LV ZKR LQYHQWHG ¶+DPEUH

&HUR· ² H[FHSW ZH FDOOHG LW WKH ¶3URGXFWLYH )RRG 3URJUDP·« ,W
ZDV D EDWWOH DERXW WKH DQDO\VLV RI WKH VRFLRORJLFDO UHDOLW\ RI
VRFLHW\ LQ  ,W ZDV DIWHU >KXUULFDQH@ 0LWFK ZH ILJXUHG RXW
ZKDW ZDV NH\ WR PDNH VXUH SHRSOH ZRXOG QRW VHOO WKH WKLQJV
ZH EURXJKW WR WKHP >«@ :H XVHG WR JLYH DLG WR WKH PDOH DV
WKH KHDG RI WKH IDPLO\ EXW WKH\ RIWHQWLPHV VROG ZKDW ZH JDYH
WKHP

$FFRUGLQJ WR )HUQDQGR )RQVHFD &,35(6 LQ D FHUWDLQ VHQVH SUHSDUHG WKH

FXUUHQW JRYHUQPHQW ZLWK VWXGLHV DQG ILHOG WHVWV VHYHUDO \HDUV EHIRUH WKH\
7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

FRXOG WDNH SRZHU :KHQ KH VDLG ¶ZH· LW VRPHWLPHV VHHPHG WR UHIHU WR WKH
6DQGLQLVWD PRYHPHQW DW ODUJH DQG DW RWKHU WLPHV WR UHIHU RQO\ WR WKRVH
ZRUNLQJ DW &,35(6 ,W GLG QRW VHHP WHUULEO\ UHOHYDQW IRU KLP WR PDNH D
GLVWLQFWLRQ :KDW DOO WKHVH RUJDQL]DWLRQV DUH GHILQHG E\ LV WKDW WKH\ ZRUN
GLUHFWO\ ZLWK JRYHUQPHQW EXUHDXFUDWLF LQVWLWXWLRQV $QRWKHU IHDWXUH WKH\
PDNH XVH RI LV WKHLU NQRZOHGJH DV SURIHVVLRQDO WR FRQYLQFH WKH JRYHUQ
PHQW RI SROLF\ LQ FHUWDLQ DUHDV 7KH\ DOVR RSHUDWH LQ DQ HQYLURQPHQW
ZKHUH SDUW\ DIILOLDWLRQ ZLWK WKH )6/1 LV QRW GLUHFWO\ H[SUHVVHG

3RZHU WKURXJK FRPELQLQJ SDUOLDPHQWDU\ DQG DFWLYLVW ZRUN

3ROLWLFDO DIILOLDWLRQV DUH D SRSXODU WKHPH RI FRQYHUVDWLRQV LQ 1LFDUDJXD
PXFK PRUH VR WKDQ HOVHZKHUH $ ORW RI DFWLYLWLHV DUH FDUULHG RXW WKURXJK
SDUW\UHODWHG QHWZRUNV EXW WKH\ DUH QRW RSHQO\ GHFODUHG DV VXFK 0\
REVHUYDWLRQV LQ WKLV DUHD VWDQG LQ FRQWUDVW ZLWK WKRVH RI WKH DQWKURSRO
RJLVW %DEE   ZKR FODLPHG WR KDYH HQFRXQWHUHG D 1LFDUDJXD LQ WKH
SRVW6DQGLQLVWD \HDUV WKDW KDG OHIW SDUW\ SROLWLFV EHKLQG VHH DOVR ³ 3RVW
6DQGLQLVWD VWXGLHV S [[L[ 
, ILUVW HQFRXQWHUHG WKLV SKHQRPHQRQ RI FRPELQLQJ DFWLYLVP ZLWK SDU
OLDPHQWDU\ ZRUN ZKHQ YLVLWLQJ WKH FLW\ RI *UDQDGD LQ $SULO  , UDQ
LQWR %HQMDPtQ *DUD\ DQ ROGHU JHQWOHPDQ NQRZQ SRSXODUO\ DV ¶SURIHVVRU
%HQML· DW WKH FLW\ VTXDUH :KHQ , WROG KLP RI P\ SXUSRVH LQ 1LFDUDJXD KH
LQYLWHG PH WR DQ DUHD RXWVLGH WKH FLW\ UHFHQWO\ RFFXSLHG E\ ZKDW FDOOHG
LWVHOI D ¶JURXS RI FRQFHUQHG FLWL]HQV· , ZHQW DORQJ ZLWK KLP WR WKH ODQG
RFFXSDWLRQ DQG ZDV SUHVHQWHG WR VRPH RI WKH RUJDQL]HUV 2QH JLUO ZRUH
D WVKLUW RI &DOGHUyQ 6DQGLQR 6KH H[SODLQHG WKH VHWXS WR PH DQG WKDW
WKHUH ZHUH DUHDV IRU IRUPHU PHPEHUV RI WKH PLOLWDU\ SROLFH ZRPHQ DQG
HYHU\ERG\ HOVH *DUD\ FRPPHQWHG
6HH WKHVH SHRSOH DUH QRW JUDWHIXO 7KH )UHQWH GRHV HYHU\
WKLQJ IRU WKHP \HW ZKHQ \RX DVN ZKDW WKH\·OO YRWH WKH\·OO
WHOO \RX WKH\ GRQ·W NQRZ
$QRWKHU RQH RI WKHP VDLG ´6HH LW·V EHWWHU WKLV ZD\ >WKDW LW·V QRW RQO\ RSHQ
WR 6DQGLQLVWD VXSSRUWHUV@ LI ZH DUH WR JURZµ :KHQ , IRUPDOO\ LQWHUYLHZHG
WKH ZRPDQ ZLWK WKH &DOGHUyQ 6DQGLQR WVKLUW DQG DVNHG DERXW WKHLU SDUW\
DIILOLDWLRQV VKH VDLG ´2K QR ZH DUH QRW DIILOLDWHG ZLWK DQ\ SDUW\ :H DUH
SHRSOH XQLWHG IURP DOO EDFNJURXQGV KHUHµ
$ IHZ ZHHNV ODWHU , ZDQWHG WR LQWHUYLHZ VRPH RI WKH )6/1 PHPEHUV LQ
WKH *UDQDGD FLW\ FRXQFLO DERXW WKLV LVVXH :KHQ HQWHULQJ WKH EXLOGLQJ ,
¶3URIHVVRU· %HQMDPtQ *DUD\ VHFRQG IURP OHIW VSRQWDQHRXVO\ MXPSV XS RQ
WKH VFHQH DQG DQQRXQFHV WR WKH 7HOHWRQ  LQ *UDQDGD WKDW KH ZLOO QRZ
WDNH WKH \RXQJ (XURSHDQ DQWKURSRORJLVW ZLWK WKH FDPHUD DORQJ WR YLVLW WKH
ODQG RFFXSDWLRQ DQG WKDW WKHVH LPDJHV OLNHO\ ZLOO PDNH LW WR (XURSH

$OWKRXJK -RVp 'DQLHO 2UWHJD 6DDYHGUD SURPLVHG LW ZRXOG QRW KDSSHQ VHYHUDO
ODQG JUDEELQJV KDYH RFFXUUHG VLQFH KH WRRN RIILFH 6DQGLQLVWDV DUH RIWHQ
LQVWUXPHQWDO LQ WKHLU RUJDQL]DWLRQ


7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

LPPHGLDWHO\ UDQ LQWR WKH VHFRQG RUJDQL]HU IURP WKH RFFXSLHG DUHDV +H
FOHDUO\ ZRUNHG LQ WKH FLW\ FRXQFLO IRU WKH )6/1 JURXS +H LPPHGLDWHO\
UDQ RYHU WR PH DQG , WROG KLP ZKDW , ZDV ORRNLQJ IRU +H H[SODLQHG ´<HV
WKHUH LV RQH >FLW\ FRXQFLO PHPEHU@ KHUH ZKR KDV EHHQ ZRUNLQJ D ORW RQ
WKDW FDVH +H NQRZV HYHU\WKLQJ DERXW LWµ
+H JXLGHG PH RYHU WR WKH RIILFH RI VDLG FLW\ FRXQFLO PHPEHU , ZDLWHG
WKHUH ZLWK VRPH RWKHU 6DQGLQLVWDV ZKLOH WKH FRXQFLO PHPEHU DV IDU DV
ZKDW , ZDV EHLQJ WROG VWLOO ZDV RXW LQ WKH RFFXSLHG WHUULWRU\ 2QFH KH
UHWXUQHG , PDGH LW FOHDU WR KLP WKDW , ZDQWHG WR LQWHUYLHZ KLP DERXW WKDW
SURMHFW +H DQVZHUHG

:KDW ODQG JUDEELQJ H[DFWO\" %HFDXVH WKHUH LV RQH GRZQ VRXWK

WKHUH ZKLFK LV LOOHJDO DQG ZH DV WKH )6/1 DUH RI FRXUVH DJDLQVW
WKDW

,W ZDV FOHDU WKDW KH WDONHG DERXW WKH DUHD , KDG YLVLWHG DQG LW ZDV HTXDOO\
FOHDU WKDW DOWKRXJK KH FODLPHG WR EH DJDLQVW LW LW ZDV RUJDQL]HG ERWK E\
KLP DQG KLV SHUVRQDO FLW\ FRXQFLO ZRUNHUV $V LW WXUQHG RXW WKURXJK KLV
H[SODQDWLRQV WKH )6/1 LQLWLDOO\ YRWHG IRU D QRWH FRQGHPQLQJ WKLV JUDEELQJ
RI ODQG %HIRUH , WXUQHG WKH FDPHUD RQ WR UHFRUG KLV VWDWHPHQW , IHOW KH
ZDQWHG WR PDNH VXUH ZH KDG DQ LPSOLFLW XQGHUVWDQGLQJ WKDW KH ZRXOG QRW
EH DEOH WR GHIHQG WKH ODQG JUDEELQJ SXEOLFO\ 7KH )6/1 VWUDWHJ\ LQ WKH FLW\
FRXQFLO ZDV WR FRQGHPQ WKH DFWLRQ ZKLOH VLPXOWDQHRXVO\ GHFODULQJ WKHUH
ZDV QR ZD\ WR UHPRYH WKH ODQG JUDEEHUV DW WKLV WLPH DQG RQH QHHGHG WR
IRFXV RQ WKH KXPDQLWDULDQ DVSHFWV RI WKH VLWXDWLRQ 7KLV PHDQW RQH KDG WR
XQGHUVWDQG WKH SHRSOH ZKR VDW RQ WKH ODQG ZHUH LQ LPPHGLDWH QHHG RI DQ
DIIRUGDEOH SODFH WR OLYH
, ZLWQHVVHG DQRWKHU ODQG RFFXSDWLRQ LQ &LXGDG 6DQGLQR ,W ZDV LQ
VWUXFWLYH EHFDXVH LW VKRZHG KRZ JURXSV QRW EHORQJLQJ WR WKH 6DQGLQLVPR
WUDGLWLRQ DUH DW WLPHV SHUPLWWHG WR EH SDUW RI WKH SRSXODU RUJDQL]LQJ HI
IRUWV ZLWKLQ WKH RYHUDOO 6DQGLQLVWD VWDWH , UHDFKHG WKH RFFXSLHUV WKURXJK
P\ IRUPHU VWXGHQW -DYLHU 'tD] :KHQ , FDPH E\ WR YLVLW KLP KH GURYH XV
WR VHH WKHP DV KH EHOLHYHG LW FRXOG LQWHUHVW PH 7KH QH[W IHZ WLPHV WKDW ,
ZHQW EDFN , GLG VR E\ P\VHOI 7KH VHWXS RI WKLV ODQGRFFXSDWLRQ VHHPHG
VLPLODU WR *UDQDGD ZLWK D IHZ DFWLYLVWV OHDGLQJ WKH HIIRUW ZKR ZHUH QRW LQ
QHHG RI ODQG DQG WKH RZQHUVKLS RI WKH ODQG EHLQJ LQ GRXEW ZLWK D QHDUE\
ODQGRZQHU FODLPLQJ WKDW LW ZDV KLV DQG WKH RFFXSLHUV FODLPLQJ LW ZDV WKH
SURSHUW\ RI WKH JRYHUQPHQW
7KH ORFDO SROLWLFDO IRUFHV DW SOD\ DUH GLIIHUHQW ,QVWHDG RI 6DQGLQLVWDV
-RVp 6DQWRV $JXLUUH 3pUH] OHIW DQG $UDFHO\ *XLOOpQ ULJKW FODLP WR EH
FRQQHFWHG ZLWK WKH 3DUWLGR 5HVLVWHQFLD 1LFDUDJHQVH 351  WKH SDUW\ RI WKH
IRUPHU &RQWUDV 7KH\ RUJDQL]HG D ODQG RFFXSDWLRQ LQ &LXGDG 6DQGLQR LQ
 DQG FODLPHG WLWOH WR WKH ODQG EDVHG RQ SURPLVHV WR &RQWUDV ZKR SXW
WKHLU DUPV GRZQ LQ  7KHVH SURPLVHV KDG KLWKHUWR QRW EHHQ IXOILOOHG
$JXLHUUH 3pUH] H[SUHVVHV JUDWLWXGH WR WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ
1DFLRQDO )6/1 JRYHUQPHQW IRU EHLQJ WKH ILUVW WR JLYH WKHP ODQG /DWHU ,
OHDUQHG WKDW WKH WZR KDG LQGLVFULPLQDWHO\ LQYLWHG SRRU SHRSOH WR MRLQ PDQ\
RI ZKRP GLG QRW NQRZ WKDW WKH ODQG RFFXSDWLRQ KDG DQ\ FRQQHFWLRQ WR WKH
&RQWUDV , DOVR GLVFRYHUHG WKDW WKH 351 GHQLHV WKDW $JXLUUH DQG *XLOOpQ DUH
PHPEHUV

RUJDQL]LQJ WKH RFFXSDWLRQ WKH WZR PDLQ RUJDQL]HUV RI WKH ODQG JUDEELQJ
LQ &LXGDG 6DQGLQR -RVp 6DQWRV $JXLUUH 3pUH] DQG $UDFHO\ *XLOOpQ ZHUH
IRUPHU &RQWUDV ZKR SUHVHQWHG WKHPVHOYHV DV FRQQHFWHG WR WKH 3DUWLGR
5HVLVWHQFLD 1LFDUDJHQVH 351  7KH FDPS ZDV LQLWLDOO\ SUHVHQWHG WR PH E\
WKHP DV FRQVLVWLQJ RI D JURXS RI IRUPHU &RQWUDV ZKR KDG EHHQ LQ QHHG
RI ODQG 7KH DFWLRQ RI JUDEELQJ WKH ODQG ZDV H[SODLQHG WR PH DV KDYLQJ
EHHQ WDNHQ LQ FRQQHFWLRQ ZLWK WKH SURPLVH WR &RQWUDV WR EH JLYHQ ODQG
DIWHU WKH SHDFH LQ  7KLV SURPLVH ZDV KLWKHUWR QRW IXOILOOHG VHH DOVR
³ 7UDQVLWLRQ IURP SRZHU S   2YHU WKH PRQWKV , VDZ WKHP IUHTXHQWO\
'XULQJ WKH IDOO RI  WKH\ ZHUH ODUJHO\ FRQFHUQHG DERXW DWWDFNV IURP D
QHLJKERU ZKR FODLPHG WR RZQ WKH ODQG DV ZHOO DV WKH EXUHDXFUDWLF SURFHVV
WR UHFHLYH RIILFLDO WLWOHV LQ 0DQDJXD

7KH )6/1 PD\RU RI &LXGDG 6DQGLQR LQ  ZDV 5D\PXQGR )ORUHV

*HQHW +LV WHUP HQGHG ZLWK WKH HOHFWLRQV RI WKDW VDPH \HDU +H KDG ORVW WKH
SRVLWLRQ RI SROLWLFDO VHFUHWDU\ RI WKH )6/1 LQ &LXGDG 6DQGLQR D \HDU HDUOLHU
5RGUtJXH] D  +H H[SUHVVHG RSSRVLWLRQ WR WKH ODQG RFFXSDWLRQ ZKHQ
, DVNHG KLP DERXW LW +H ZDV DOVR DQJU\ WKDW WKH SROLFH GHILHG RUGHUV WR
UHPRYH WKHP 7KH LQFRPLQJ )6/1 PD\RU 5REHUWR 6RPR]D ZDV VDLG E\ WKH
ODQG RFFXSLHUV QRW WR PLQG WKHP , ZDV QHYHU DEOH WR VFKHGXOH D PHHWLQJ
ZLWK KLP DQG WKH SROLFH RI &LXGDG 6DQGLQR GHFLGHG QRW WR FRPPHQW RQ
ZK\ WKH\ ZHUH QRW DFWLQJ


5D\PXQGR )ORUHV *HQHW )6/1  RXWJRLQJ PD\RU RI &LXGDG 6DQGLQR LQ 
VD\V WKDW WKH ODQG WKH IRUPHU &RQWUDV KDYH WDNHQ ZDV ERXJKW RQO\ LQ SDUW E\
WKH VWDWH IURP WKH IRUPHU RZQHUV DIWHU LW KDG EHHQ QDWLRQDOL]HG GXULQJ WKH
V +H WKHUHIRUH WKLQNV LW LV VWLOO XQFOHDU ZKHWKHU WKH DUHD FXUUHQWO\
RFFXSLHG LV VWDWH SURSHUW\ 7KH ODQG RFFXSDWLRQ RUJDQL]HUV WKHPVHOYHV
EHOLHYH )ORUHV *HQHW KDV VWUXFN D SHUVRQDO GHDO WR EXLOG H[SHQVLYH KRXVLQJ
RQ WKH VDPH ODQG )ORUHV *HQHW LV IXULRXV WKDW WKH SROLFH GR QRW IROORZ KLV
RUGHUV RI UHPRYLQJ WKH RFFXSLHUV +H LV DOVR RQH RI WKH ILUVW WR SRLQW RXW WR
PH WKDW QRW DOO WKRVH WDNLQJ SDUW LQ WKH RFFXSDWLRQ DUH IRUPHU &RQWUDV

)RU D ZKLOH LW VHHPHG WR EH DQ H[WUDRUGLQDU\ IDYRUDEOH WUHDWPHQW

RI &RQWUDV E\ WKH KLJKHU VWUDWD RI WKH )6/1 HYHQ WKRXJK WKH VWRU\ WROG
WR PH FKDQJHG DIWHU D ZKLOH ZKHQ $JXLUUH 3pUH] FODLPHG WKDW LW ZDV QRW
RQO\ IRUPHU &RQWUDV EXW DOVR IRUPHU PHPEHUV RI WKH PLOLWDU\ DQG WKH
SROLFH ZKR PDGH XS WKH FDPS ´:H GRQ·W JR DURXQG ZLWK DQ LGHRORJ\ ZH
DUH WKH VDPHµ KH H[SODLQHG , VWLOO ZDQWHG WR NQRZ ZK\ KH WKRXJKW WKDW
WKUHH /LEHUDO JRYHUQPHQWV GLG QRW KHOS WKHP DV &RQWUDV DQG WKDW WKH\
QRZ H[SHFWHG WKH 6DQGLQLVWDV ZKRP WKH\ IRXJKW DJDLQVW IRU  \HDUV WR
JLYH WKHP ODQGV

7R EH KRQHVW« 2QH KDV WR VSHDN RI UHDOLW\ 7KH /LEHUDOV ZHUH

QRW FRQFHUQHG DERXW XV 7KH\ DUH RI PRQH\ DQG WKH SRRU
SHRSOH WKH\ GRQ·W VHH 7R EH IUDQN DQG VD\ LW OHJLWLPDWHO\ ,
DP QRW D 6DQGLQLVWD , DP >SDUW RI WKH@ 1LFDUDJXDQ 5HVLVWDQFH
EXW , VSHDN DERXW UHDOLW\ 7KH\ DUH KHOSLQJ XV PRUH WKDQ
RXU SHRSOH 2XU SHRSOH OHIW XV EHKLQG 7KH\ IRUJRW DERXW XV
7KH\ FRQWLQXH ZLWK WKHLU PLOOLRQV DQG ZH ZLWK SRYHUW\ $QG
WKHVH >6DQGLQLVWDV@ GRQ·W UHPRYH XV DQG VR KHUH ZH DUH >«@
,W·V QRW EHFDXVH , KDYH WKH VDPH LGHRORJ\ , DP >SDUW RI WKH
1LFDUDJXDQ@ 5HVLVWDQFH %XW RQH KDV WR ORRN IRU ZKR JLYHV
\RX WKHLU KDQG


$OWKRXJK WKH SROLFH GR QRW UHPRYH WKH ODQG RFFXSLHUV LQ &LXGDG 6DQGLQR
WKH\ GR QRW GHIHQG WKHP HLWKHU 7KH RFFXSLHUV IRUP WKHLU RZQ JXDUGV WR IHQG
RI WKH IUHTXHQW DWWDFNV DJDLQVW WKHP 7KH\ EHOLHYH WKDW WKHVH DUH RUGHUHG
E\ IRUPHU RZQHUV RI WKH ODQG

2QH GD\ , VKRZHG XS HDUOLHU WKDQ ZKDW KDG EHHQ DJUHHG XSRQ DQG QRQH
RI WKH RUJDQL]HUV ZHUH SUHVHQW , ZDLWHG LQ WKH OLQH RXWVLGH WKH PDLQ
RUJDQL]LQJ WHQW DQG VWDUWHG WR FRQYHUVH ZLWK VRPH RI WKRVH OLYLQJ RQ WKH
ODQG 7KLV ZDV WKH ILUVW WLPH , VSRNH WR WKHP ZLWKRXW DQ\ RI WKH RUJDQL]HUV
DURXQG 7KRVH VWDQGLQJ WKHUH H[SODLQHG WKH\ ZHUH VLPSO\ SHRSOH ZLWK
D QHHG IRU ODQG DQG WKDW WKH RUJDQL]HUV KDG RIIHUHG SLHFHV RI ODQG IRU D
QRPLQDO IHH :KHQ , DVNHG WKHP DERXW WKHLU FRQQHFWLRQ ZLWK WKH &RQWUDV
RU DQ\ RI WKH RWKHU JURXSV PHQWLRQHG WKH\ ORRNHG DW PH DVWRQLVKHG DQG
H[SODLQHG WKDW WKLV FDPS KDG QRWKLQJ WR GR ZLWK WKH &RQWUDV 6XGGHQO\ LW
GDZQHG RQ PH WKDW WKH RQO\ RQHV ZKR KDG VDLG WKH\ ZHUH FRQQHFWHG WR
WKH &RQWUDV ZHUH WKH WZR PDLQ RUJDQL]HUV , KDG SUHYLRXVO\ ZRQGHUHG ZK\
WZR RI WKH ODQG RFFXSLHUV KDG SXW RXW UHGDQGEODFN )6/1 IODJV DQG QR IODJV
UHSUHVHQWLQJ RWKHU JURXSV ZHUH WR EH IRXQG DQ\ZKHUH EXW WKH RUJDQL]HUV
KDG MXVW EUXVKHG LW RII DV PHDQLQJ QRWKLQJ 7KH &RQWUDFRQQHFWLRQ RI WKH
RUJDQL]HUV ZDV RQO\ XVHG WR OHJLWLPL]H D KDQG RXW RI ODQG WR SRRU SHRSOH
LQ JHQHUDO 6RPH VWXG\LQJ RI SDVW QHZV SDSHU DUWLFOHV VKRZV WKDW WKH
QDWLRQDO 351 OHDGHUVKLS KDG FODLPHG LQ -XQH  WKDW WKH WZR RUJDQL]HUV
ZHUH QRW PHPEHUV RI WKHLU SDUW\ ( *DUFtD   :KHQ , VKRZHG XS DW
WKH KHDGTXDUWHUV RI WKH 351 LQ 0DQDJXD RQFH DQG DVNHG DERXW WKH ODQG
RFFXSDWLRQ WKH RIILFLDOV , PHW DW ILUVW WULHG WR WHOO PH WKHVH ZRXOG EH SDUW


7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

RI WKH ¶UHVLVWDQFH PRYHPHQW· EXW QRW RI WKH 351 :KHQ , LQVLVWHG WKRVH
, ORRNHG IRU ZHUH PHPEHUV RI WKH SDUW\ WKH\ ILQDOO\ JDYH PH WKH SKRQH
QXPEHUV RI $JXLUUH 3pUH] 2QO\ QRZ GLG , XQGHUVWDQG WKLV ZDV DQ HIIRUW
WR KLGH WKH FRQQHFWLRQ ,Q 2FWREHU  D IHZ ZHHNV DIWHU KH VWDWHG WKH
SRVLWLYH ZRUGV RQ WKH )6/1 JRYHUQPHQW $JXLUUH 3pUH] ILJXUHG DV WKH
SUHVLGHQW RI WKH 351 LQ WKH PXQLFLSLR RI &LXGDG 6DQGLQR LQ WKH VDPH
QHZVSDSHU ZKLFK SUHYLRXVO\ KDG GHVFULEHG KLP DV QRW EHORQJLQJ WR WKH
SDUW\ ZKHQ KH DQQRXQFHG KLV VXSSRUW IRU WKH 3/& FDQGLGDWH LQ WKH ORFDO
HOHFWLRQV ÉOYDUH]  
, HQFRXQWHUHG PDQ\ VLPLODU VLWXDWLRQV RI KLGGHQ SDUW\ FRQQHFWLRQV
EHKLQG RUJDQL]LQJ HIIRUWV ² ZLWK WKH WK RI 0DUFK ZRPHQ·V PDUFK LQ /HyQ
FRQWUROOHG E\ WKH 056 SURWHVWLQJ VXJDU DQG EDQDQD ZRUNHUV LQ 0DQDJXD
RUJDQL]HG E\ SHRSOH ZLWK EDFNJURXQG IURP WKH )6/1 YDULRXV 1*2V LQ
FRQQHFWLRQ ZLWK WKH DQWLJRYHUQPHQW SURWHVWV FRQWUROOHG E\ WKH 056 DQG
VWXGHQW JURXSV LQ /HyQ FRPLQJ IURP WKH )6/1 $OVR DOO WKH RUJDQL]HG
LQGLJHQRXV SHRSOH LQ /HyQ , PHW WXUQHG RXW WR EH SDUW\ PHPEHUV RI HLWKHU
WKH 3/& RU WKH )6/1 +DG , QRW KDG PDQ\ \HDUV RI H[SHULHQFH LQ RSHUDWLQJ
LQ D SROLWLFDO FRQVSLUDWRULDO HQYLURQPHQW DPRQJ WKH IDU OHIW RI 1RUZD\ ,
ZRXOG OLNHO\ QHYHU KDYH WKRXJKW RI LQYHVWLJDWLQJ ZKHWKHU D JURXS WKDW
FODLPV LW LV LQGHSHQGHQW DQG QRW FRQQHFWHG WR DQ\ SROLWLFDO SDUW\ LV FRUUHFW
LQ LWV FODLP

3RZHU WKURXJK LQILOWUDWLRQ

6RPH RI WKH 6DQGLQLVWD SROLWLFDO LQYROYHPHQW PD\ KDYH EHHQ D ORW PRUH
KLGGHQ WKDQ ZKDW DQWKURSRORJLVWV LQ 1LFDUDJXD KDYH IRXQG EHWZHHQ 
DQG  ,Q -XO\  , ZLWQHVVHG D EXOO UDFH LQ 0DQDJXD DV SDUW RI WKH
&DWKROLF 6DQWR 'RPLQJR FHOHEUDWLRQV (ULFN 6DXO 5LRV -XDUH] D  \HDU ROG
)6/1 6DQGLQLVWD DQG UDGLR KRVW KDG DVNHG PH WR FRRSHUDWH RQ ILOPLQJ WKH
HYHQW 'LIIHUHQW IURP VLPLODU DFWLYLWLHV LQ 6SDLQ D ZKROH VHULHV RI EXOOV
ZHUH LQYROYHG DQG GUXQN SHRSOH WULHG WR PRXQW WKHP UDWKHU WKDQ NLOO
WKHP $OVR WKH ¶EXOO DOZD\V ZLQV· DV &DUORV $OEHUWR 5RFKD &DVWUR RQFH
SXW LW EHFDXVH RQO\ KXPDQV ZHUH VHULRXVO\ KXUW DQG WKH EXOOV DOO ZHQW
EDFN WR OLYH LQ WKH FRXQWU\VLGH DIWHU WKH GD\ ZDV RYHU )URP WKH RXWVLGH
WKLV ORRNHG OLNH PDQ\ WUDGLWLRQDO FHOHEUDWLRQV LQ WKH WKLUG ZRUOG ,QLWLDOO\
, DVVXPHG LW ZDV VRPHWKLQJ WKH &DWKROLF &KXUFK WRRN IURP SUHH[LVWLQJ
UHOLJLRQV ZKLFK LW WKHQ DGRSWHG DQG PRGHUQL]HG
, ZDV VXUSULVHG ZKHQ 5LRV -XDUH] UHYHDOHG WR PH WKDW DOO WKRVH ZRUN
7KH 9DFDV &XORQDV LV DQ HYHQW LQ ZKLFK EXOOV DUH OHW ORRVH LQ VRPH VWUHHWV
RI 0DQDJXD ,W LV SDUW RI WKH DQQXDO 6DQWR 'RPLQJR FHOHEUDWLRQV DQG ZDV
¶LQYHQWHG· E\ 6DQGLQLVWDV DIWHU WKH\ ORVW WKH  HOHFWLRQV

LQJ LQ WKH SUHSDUDWLRQ RI WKLV SDUW RI WKH 6DQWR 'RPLQJR FHOHEUDWLRQV ZHUH
6DQGLQLVWDV , ZDV HYHQ PRUH VXUSULVHG ZKHQ , LQWHUYLHZHG WKH SULQFL
SDO SHUVRQ UHVSRQVLEOH IRU WKH DUUDQJHPHQW +H UHYHDOHG WKH 6DQGLQLVWD
SODQQLQJ EHKLQG WKH HYHQW HYHQ PRUH RSHQO\
:KHQ ZH ORVW WKH HOHFWLRQV LQ  ZH GHFLGHG DV D SDUW\ ZH
QHHGHG WR LQILOWUDWH DOO SXEOLF VSDFHV DYDLODEOH WR XV 7KDW DOVR
LQFOXGHG WKH FKXUFK DQG WKH 6DQWR 'RPLQJR FHOHEUDWLRQV 6R
LQ DQWLFLSDWLRQ RI WKH FXOWXUDO LPSRUW RI FHOHEUDWLRQV VXFK
DV +DOORZHHQ IURP WKH 8QLWHG 6WDWHV ZH ZDQWHG WR FUHDWH
VRPHWKLQJ DOWRJHWKHU 1LFDUDJXDQ &RZV DUH D WUDGLWLRQDO 1L
FDUDJXDQ DQLPDO DQG ZH DGRSWHG WKDW WR WKH FLW\ DQG FUHDWHG
WKH EXOO UDFHV
7KH ODVW SDUW RI WKLV VWDWHPHQW VHHPV WR EH DW OHDVW LQ SDUW IDOVH DV DOUHDG\
/DQFDVWHU  ² UHSRUWHG RQ WKH XVDJH RI FRZ FRVWXPHV GXULQJ
WKH 6DQWR 'RPLQJR FHOHEUDWLRQV +RZHYHU LW LV DSSURSULDWH LQ FRQQHFWLRQ
ZLWK WKLV SRUWUD\DO RI WKH RUJDQL]DWLRQ RI WKLV EXOO UDFH LQ WKH SDVW WR UHFRQ
VLGHU WKH ILQGLQJV RI %DEE  DV LW VHHPV WR KDYH EHHQ KRZ PDQ\ IRUHLJQ
REVHUYHUV VDZ 1LFDUDJXD GXULQJ WKH SRVW6DQGLQLVWD \HDUV $FFRUGLQJ WR
KHU WKH SROLWLFDO OLIH RI WKH SUHYLRXVO\ SDUW\ FRQWUROOHG VRFLHW\ KDG LQ WKH
VHDUO\ V WXUQHG LQWR D ODUJH DPRXQW RI LQGHSHQGHQW JURXSV DQG
RUJDQL]DWLRQV HDFK ZLWK WKHLU RZQ QDUURZO\ GHILQHG DJHQGD RI LGHQWLW\
SROLWLFV FRPLQJ LQWR EHLQJ VHH DOVR ³ 3RVW6DQGLQLVWD VWXGLHV S [[L[  +HU
YLVLRQ ZDV RI D 1LFDUDJXD LQ QHROLEHUDO UXLQV LQ ZKLFK WKH 6DQGLQLVWDV KDG
GLVDSSHDUHG IURP SRZHU IRUHYHU +HU SURMHFWLRQ RI WKH IXWXUH RI 1LFDUDJXD


7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

ZDV RQH LQ ZKLFK WKHUH ZDV HYHU PRUH KXQJHU DQG SRVWPRGHUQ OLIHVW\OH
DQG LGHQWLW\ SROLWLFV 7KLV GLG QRW FRPH WUXH $V P\ IRUPHU VWXGHQW DQG
DFWLYLVW 'RXJODV $XJXVWR 9DUHOD 9LOFKH] PHQWLRQHG DW D WLPH ZKLOH KH
ZDV ZRUNLQJ XQRIILFLDOO\ IRU WKH 056 EXW RIILFLDOO\ IRU DQRWKHU 1*2 ´1L
FDUDJXDQV ZKR FODLP WKH\ DUH QRW LQWR >SDUW\@ SROLWLFV ² WKH\ DUH O\LQJµ
&HUWDLQO\ WKH 1LFDUDJXD %DEE GHVFULEHV MXVW D IHZ \HDUV HDUOLHU ZDV D GH
FLGHGO\ GLIIHUHQW 1LFDUDJXD WKDQ WKH RQH , VDZ LQ WHUPV RI SROLWLFDO SRZHU
DQG PDMRULWLHV 2I FRXUVH , FDQ QRW NQRZ ZKHWKHU %DEE  FRUUHFWO\
GHVFULEHG ZKDW 1LFDUDJXDQV WKRXJKW DW WKH WLPH RU ZKHWKHU VKH MXVW GLG
QRW PDQDJH WR SHQHWUDWH WKH VRFLDO VWUXFWXUH RI WKH DFWLYLVW JURXSV HQRXJK
WR UHDOL]H ZKDW VWUXFWXUHV DFWXDOO\ PDWWHUHG DW WKH WLPH :KR NQRZV ²
PD\EH WKH LGHD RI LQILOWUDWLRQ ZDV VRPHWKLQJ WKH 6DQGLQLVWDV JRW DIWHU WKH
IDFW ZKHQ WKH )6/1 ZDV LQ JRYHUQPHQW DJDLQ

8VH RI SDLG SURWHVWHUV"

:KLOH DOO WKH RWKHU H[DPSOHV SRLQW WR DFWLYLVP EDVHG RQ ZDQWLQJ WR WU\ WR
FKDQJH VRFLHW\ RQ WKH SDUW RI WKH SDUWLFLSDQWV H[DPSOHV H[LVW RI SDLG RU
IRUFHG SURWHVWV 0RVW 1LFDUDJXDQV , VSRNH WR DERXW WKH LVVXH DVVXPHG JRY
HUQPHQW ZRUNHUV ZHUH IRUFHG WR SDUWLFLSDWH LQ SURJRYHUQPHQW SURWHVWV
:KLOH WKLV PD\ EH WKH FDVH LW LV P\ H[SHULHQFH ZKHQ WDONLQJ WR VXFK ZRUN
HUV WKDW WKH SUHVVXUH WR SDUWLFLSDWH LV QRW DUWLFXODWHG GLUHFWO\ VR LW LV KDUG
WR YHULI\ ZKHWKHU WKH\ ZHUH DFWXDOO\ EHLQJ SUHVVXUHG WR SDUWLFLSDWH RU
ZKHWKHU WKH\ LPDJLQH WKH\ ZHUH 7KHUH LV D PXFK PRUH FOHDUFXW H[DP
SOH RI SDLG SURWHVWHUV EHLQJ XVHG E\ WKH JRYHUQPHQW ,Q WKLV FDVH , DOVR
ZRQGHU LI WKH SURWHVWHUV FRXOG QRW EH VDLG WR KDYH VRPH LQIOXHQFH WKURXJK
WKLV PHDQ DQG JHW FORVHU WR DFKLHYH WKHLU RZQ JRDOV
%HWZHHQ $XJXVW DQG WKH PXQLFLSDO HOHFWLRQV RI 1RYHPEHU RI  LQ
0DQDJXD WKH URWRQGDV ZHUH SK\VLFDOO\ RFFXSLHG E\ IRUPHU EDQDQD ZRUN
HUV 6LPXOWDQHRXVO\ WKH EDQDQD ZRUNHUV SURWHVWHG RXWVLGH SDUOLDPHQW IRU
PRUH WKDQ KDOI D \HDU IRU FRPSHQVDWLRQ GXH WR ZRUN UHODWHG LQMXULHV DQG
GDPDJHV $W ILUVW WKHLU SURWHVW ZDV PRXQWHG XQGHU WKH 056 EDQQHU %XW
DIWHU ZKDW WKH\ H[SODLQHG WR PH DV EHLQJ H[WHQVLYH FRUUXSWLRQ RI WKHLU LQL
WLDO OHDGHU D PHPEHU RI WKH 056 RU DW OHDVW FORVHO\ FRQQHFWHG WR WKHP ZDV
UHYHDOHG WKH )6/1 WRRN RYHU WKH SURWHVW DQG WKH JRYHUQPHQW SURYLGHG
WKHP ZLWK IRRG
, LQWHUYLHZHG VRPH RI WKH OHDGHUV RI WKH EDQDQD ZRUNHUV D OLWWOH EH
IRUH WKH HOHFWLRQV DQG WKH\ VDLG WKH\ ZHUH XQGHU 056 OHDGHUVKLS HDUOLHU
 6DQGLQLVWD SURMHFWV RI FKDQJH

EXW QRZ WKH\ ZHUH LQGHSHQGHQW , DVNHG WKHP ZKDW WKH YDVW QXPEHU RI
UHGDQGEODFN 6DQGLQLVWD IODJV ZHUH GRLQJ LQ WKH FDPS LI WKH\ ZHUH LQGH
SHQGHQW DQG WKH\ UHSOLHG WKDW ´DQ\RQH LV IUHH WR SXW XS ZKDWHYHU SDUW\
EDQQHU WKH\ ZDQWµ , WKHQ DVNHG ZK\ WKHUH ZHUH ODUJH JRYHUQPHQW SRVWHUV
EHKLQG WKH IRRG WHQW 7KH\ WROG PH ´:HOO LW SURWHFWV XV IURP WKH UDLQ
ZH IRXQG LW GRZQ DW WKH -RKQ 3DXO WKH 6HFRQG SOD]D DIWHU >JRYHUQPHQW@
IHVWLYLWLHVµ
,Q RUGHU WR SUHYHQW WKH 056 DQG 3/& IURP PDUFKLQJ WKHVH EDQDQD
ZRUNHUV VWRRG LQ DOO WKH URWRQGDV RI 0DQDJXD VWDUWLQJ LQ WKH VXPPHU RI
 )RU WKLV WKH\ DOOHJHGO\ UHFHLYHG & SHU GD\ SHU ZRUNHU DURXQG 
86' WR VZLQJ IODJV LQ IDYRU RI WKH &3&V DQG SOD\LQJ ORXG PXVLF 7KH EDQQHU
WKH\ VWRRG XQGHU UHDG ¶ORYH LV JUHDWHU WKDQ KDWH· ² D TXRWH RI 5RVDULR
0XULOOR PDGH LQ FRQQHFWLRQ ZLWK WKH 056 SURWHVW LQ ODWH VSULQJ  VHH
DOVR ³ 7KH 056 SURWHVWV 0D\ ² 1RYHPEHU   S   7KH RFFXSDWLRQ
RI WKH URWRQGDV ODVWHG PRUH WKDQ KDOI D \HDU ZLWK VRPH LQWHUUXSWLRQV
$W WLPHV ZKHQ WKH RSSRVLWLRQ ZDV VXIILFLHQWO\ YLROHQW HVSHFLDOO\ LQ WKH
GD\V DIWHU WKH HOHFWLRQV WKH\ ZHUH DEOH WR WDNH FRQWURO RI WKH URWRQGDV DW
OHDVW RQH DW D WLPH $UJXDEO\ WKRVH RUJDQL]HG ZHUH XVHG WR DFKLHYH D JRDO
UDWKHU WKDQ DFKLHYLQJ D JRDO RI WKHLU RZQ 7KHLU SURWHVW LQ IURQW RI WKH
/LEHUDOO\ GRPLQDWHG SDUOLDPHQW ZDV LQ WKLV ZD\ SURORQJHG DV WKH\ KDG
ERWK D FRQVWDQW VRXUFH RI LQFRPH DQG VXSSO\ RI IRRG ZKLOH FDPSLQJ RXW
,Q )HEUXDU\  6DQGLQLVWD QHZV PHGLD UHSRUWHG 2UWHJD 6DDYHGUD KDG
VWDUWHG KDQGLQJ RXW KRXVHV WR WKHVH SURWHVWHUV /D 9R] GHO 6DQGLQLVPR
 

3RZHU ZLWKRXW RUJDQL]LQJ"

2UJDQL]LQJ LQ LWVHOI VHHPV WR EH D IXQGDPHQWDO SULQFLSOH RI 1LFDUDJXDQ

VRFLHW\ DQG IHZ 6DQGLQLVWDV DUH QRW RUJDQL]HG LQ VRPH JURXS RU DQRWKHU
7KH IHZ H[DPSOHV RI QRW EHLQJ RUJDQL]HG , ILQG DUH WKRVH ZRUNLQJ DV VWUHHW
YHQGRUV LQ /HyQ VXFK DV 0DUtD (OHQD %XVWLOOR 1RW PXFK GLUHFW RUJDQL]LQJ
WDNHV SODFH DPRQJ WKHP LQ /HyQ RWKHU WKDQ GLUHFWLQJ ZKR LV WR VWDQG ZKHUH
7KHLU DELOLW\ WR DIIHFW VRFLHW\ WKHUHIRUH VHHPV WR EH WKH PRVW OLPLWHG 7KH
GLVRUJDQL]DWLRQ DOVR PHDQV WKH\ DUH OHIW RXW RI FKDQQHOV RI UHFHLYLQJ KHOS
IURP WKH VWDWH $W RQH SRLQW RI WLPH , H[SODLQHG WR %XVWLOOR ZKDW NLQGV RI
PLFURFUHGLWV DUH DYDLODEOH IURP WKH JRYHUQPHQW 7KH\ JHQHUDOO\ LQYROYH
VHYHUDO SHRSOH JHWWLQJ WRJHWKHU WR DSSO\ IRU D ORDQ LQ D JURXS ´6R LI RQH RI
WKHP MXVW GLVDSSHDUV WKH UHVW KDYH WR FDUU\ WKDWµ ZDV KHU GLVDSSRLQWHG
7KH QHZ )6/1 DV SDUW RI D 6RFLDOLVP IRU WKH VW &HQWXU\ 

UHDFWLRQ %XVWLOOR H[SHFWHG WKH )6/1 WR JLYH PRUH SRZHU WR WKH SRRU LQ
JHQHUDO $V LW WXUQV RXW SRZHU LV RQO\ DFFHVVLEOH WR WKH RUJDQL]HG FLWL]HQ
%XVWLOOR PDGH PH WDNH D SKRWR RI D URWWHQ EHDP LQ KHU KRXVH DQG
ZULWH D SRVWFDUG WR KDQG WR 2UWHJD 6DDYHGUD LQ KHU QDPH WKH ILUVW WLPH ,
FDPH WR 1LFDUDJXD $QRWKHU WLPH ZKHQ FKDQJLQJ PXQLFLSDO JRYHUQPHQWV
IURP RQH )6/1 PD\RU WR WKH QH[W )6/1 PD\RU , ZLWQHVVHG KRZ %XVWLOOR
DQG WKRVH VKH KDQJV DURXQG WDONHG DERXW WKH SHUVRQDO WUDJHG\ RI ORVLQJ
D FRQWDFW LQ WKH JRYHUQPHQW ZKR ´DOZD\V ZDV JRRG WR >WKHP@µ )RU KHU
DQG RWKHUV LQ WKDW VLWXDWLRQ ZKR IHHO DQ DOOHJLDQFH WR 6DQGLQLVPR DQG WKH
2UWHJD 6DDYHGUD JRYHUQPHQW WKH UHODWLRQVKLS WR WKH JRYHUQPHQW VHHPHG
WR EH PRUH FRQQHFWHG WR WKH FDXGLOOR SULQFLSOH LQ ZKLFK D UHODWLRQVKLS WR
D JRYHUQPHQW SHUVRQ ZLWK DFFHVV WR PRQH\ DQG SRZHU ZRXOG JLYH WKHP
FHUWDLQ SULYLOHJHV

3ROLWLFDO DFWLYLVW HGXFDWLRQ

7KH XQGHUVWDQGLQJ RI WKH FROOHFWLYH QDWXUH RI SROLWLFDO SUHVVXUH DQG WKH

LGHD WKDW RQH QHHGV WR PDNH XVH RI DOO WKH RSSRUWXQLWLHV DYDLODEOH DW DQ\
JLYHQ WLPH LV TXLWH LQJUDLQHG LQ 6DQGLQLVWD SKLORVRSK\ ,W ZDV ZHOO H[
HPSOLILHG LQ WKH UHDFWLRQ WR WKH PXQLFLSDO HOHFWLRQV RI  ZKHQ QRW
RQO\ SDUW\ OHDGHUV EXW JUDVVURRW 6DQGLQLVWD IROORZHUV EHFDPH LQYROYHG LQ
GLVFODLPLQJ FKDUJHV RI YRWHU IUDXG
$ ODUJH SDUW RI WKH GLIIHUHQW XQGHUVWDQGLQJV RI ZKHWKHU WKH\ KDYH
EHHQ FKHDWHG RU QRW LV OLNHO\ GXH WR WKH GLIIHUHQFH LQ SROLWLFDO HGXFDWLRQ
DQG FXOWXUH RI /LEHUDOV DQG 6DQGLQLVWDV 7KH ZKROH VHWXS ZDV H[SODLQHG WR
PH E\ 'tD] ,Q 1LFDUDJXD DW HDFK HOHFWLRQ FHQWHU WKHUH DUH DW OHDVW WKUHH
SHRSOH VLWWLQJ DW WKH WDEOH D SUHVLGHQW D YLFHSUHVLGHQW DQG D VHFUHWDU\
7KHVH DUH VXSSRVHG WR EH IURP GLIIHUHQW SDUWLHV DQG WKH ORFDO FKDSWHU RI
WKH &RQVHMR 6XSUHPR (OHFWRUDO &6(  ZKLFK DOVR LV PDGH XS RI SHRSOH IURP
GLIIHUHQW SDUWLHV DQG ZKRVH QDWLRQDO OHDGHUVKLS LV DSSRLQWHG E\ SDUOLDPHQW
,Q DGGLWLRQ HDFK SDUW\ LV DOORZHG WR VHQG RQH REVHUYHU WR ZLWQHVV ZKDW
WDNHV SODFH DW HDFK HOHFWRUDO FHQWHU (DFK RI WKRVH RIILFLDOO\ DSSRLQWHG WR
VLW DW WKH HOHFWRUDO FHQWHU GHFLGH XSRQ D QXPEHU RQ WKH PRUQLQJ RI WKH
HOHFWLRQ 7KH\ GR QRW DQQRXQFH WKH QXPEHU WR RWKHUV XQWLO WKH HOHFWRUDO
SURFHHGLQJV RI WKH GD\ EHJLQ %HIRUH DQ\ EDOORW LV JLYHQ RXW HDFK RI WKHVH
SHUVRQV QHHGV WR ZULWH WKHLU QXPEHU RQ WKH EDOORW 7KH SUHVLGHQW DQG
YLFHSUHVLGHQW KDYH WR VLJQ LW ´7KHUH DUH VL[ ZD\V WR PDNH D EDOORW QRW
FRXQWµ 'tD] H[SODLQHG WR PH $ FLUFXPVWDQFH XQGHU ZKLFK RQH PLJKW
/LEHUDOV SDUWLFLSDWH LQ VWUHHW ILJKWV DIWHU WKHLU OHDGHUV GHFODUHG WKH\ EHOLHYHG
WKDW IUDXG KDG WDNHQ SODFH DW WKH  PXQLFLSDO HOHFWLRQV 7KH \RXQJ PDQ
ORRNLQJ WRZDUGV WKH FDPHUD ZLWK VWRQHV LQ KLV KDQG ZHDUV D WVKLUW WKDW UHDGV
´, DP D ILVFDOµ 7KH ILVFDOHV DUH WKH HOHFWLRQ REVHUYHUV WKDW UHSUHVHQW HDFK
SDUW\ LQ HOHFWLRQ FHQWHUV ,Q WKH EDFNJURXQG VHYHUDO RWKHU VWRQHFDUU\LQJ
GHPRQVWUDWRUV DUH LGHQWLILHG DV ILVFDOHV E\ WKHLU WVKLUWV 7KRVH UHSUHVHQWLQJ
WKH /LEHUDOV DW HOHFWLRQV FHQWHUV KDYH DQ LPDJH RI EHLQJ \RXQJ DQG ZLWKRXW
SROLWLFDO H[SHULHQFH 3KRWR -RUJH 0HMLD 3HUDOWD

GHFLGH WR FKHDW FRXOG EH LI D SHUVRQDO QHLJKERU ZRXOG HQWHU WKH HOHFWLRQ

FHQWHU DQG RQH NQHZ WKH QHLJKERU DOZD\V YRWHG IRU DQRWKHU SDUW\ WKDQ
RQH·V RZQ VR EHIRUH KDQGLQJ WKH EDOORW WR WKH QHLJKERU RQH ZRXOG PDNH
VXUH WR LQYDOLGDWH LW VR WKDW WKH YRWH ZRXOG QRW FRXQW 7KH VL[ ZD\V LQFOXGH
VLJQLQJ ZLWK D IDOVH QDPH QRW VLJQLQJ DW DOO SXWWLQJ GRZQ WKH ZURQJ
QXPEHU HWF :KDW DOO WKHVH KDYH LQ FRPPRQ LV WKH\ FDQQRW EH GRQH
XQOHVV QRQH RI WKH RWKHUV SUHVHQW WDNH QRWLFH 7KHUH VHHPV WR EH TXLWH
D GLIIHUHQFH LQ XQGHUVWDQGLQJ DV ZKDW FRQVWLWXWHV FKHDWLQJ 2QH \RXQJ
6DQGLQLVWD JLUO IURP (VWHOt H[SODLQHG LW WR PH WKLV ZD\

6HH \RX ZLOO W\SLFDOO\ KDYH OLNH D \HDUROG PDQ UHSUHVHQW

LQJ WKH )6/1 +H KDV SDUWLFLSDWHG LQ WKLV PDQ\ WLPHV EHIRUH
7KH /LEHUDOV ZLOO EH UHSUHVHQWHG E\ D  \HDU ROG ZKR MRLQHG
WKH GD\ EHIRUH

*yPH] 0RUDOHV ODWHU RQ H[SODLQHG WKDW VDPH SURFHVV WR PH

6HH , ZHQW WKHUH EXW , KDG P\ VRQ DURXQG VR WKDW KH FRXOG

OHDUQ KRZ DOO WKH SURFHGXUHV ZRUNHG

$W WKH VDPH WLPH , ZDV WROG RI VHYHUDO 6DQGLQLVWD YRWHUV ZKR KDG VKRZQ
IULHQGV RI PLQH WKDW WKH\ KDG LQGHHG SURRI WKDW WKH\ KDG YRWHG WZLFH 7KLV


&RQFOXGLQJ UHPDUNV 

GLG QRW VHHP WR FRQVWLWXWH D SUREOHP WR WKHP DV ORQJ DV DOO WKH SURFHGXUHV
KDG EHHQ IROORZHG :KHQ , VDW RXWVLGH PXQLFLSDO KHDGTXDUWHUV RI WKH
)6/1 /HyQ GXULQJ RQH RI WKH GD\V MXVW DIWHU WKH HOHFWLRQV RQH RI WKH ROGHU
DFWLYLVWV WROG PH
, MXVW GRQ·W XQGHUVWDQG KRZ WKH\ FDQ WDON DERXW FKHDWLQJ
:KHQ , VHH WKDW VRPHWKLQJ LVQ·W ULJKW ZLWK D EDOORW , NQRZ WR
SXW GRZQ P\ ,' FDUG RQ WKH WDEOH DQG WKH WDEOH LV DXWRPDWL
FDOO\ FORVHG XQWLO WKRVH IURP WKH &6( DUULYH DQG UHVROYH WKH
FRQIOLFW
7KH &6( GLG QRW UHFHLYH PDQ\ FRPSODLQWV DERXW FKHDWLQJ WKDW GD\ DV /LE
HUDO REVHUYHUV KDG OLNHO\ QRW NQRZQ WKH SURSHU SURFHGXUHV DQG KDG HYHQ
VLJQHG RII WKH UHVXOW EHIRUH QDPLQJ WKHLU FRQFHUQV WR FDPSDLJQ KHDGTXDU
WHUV $V WKLV H[DPSOH VKRZV WKH PRUDO EHKLQG WKHVH DFWLRQV VHHPV WR EH
WKDW ZLWKLQ WKH 6DQGLQLVWD ORJLF LW LV WKH UHVSRQVLELOLW\ RI WKH JURXSSDUW\
QRW WKH LQGLYLGXDO WR HQVXUH WKH LQGLYLGXDO YRLFH JHWV KHDUG E\ HGXFDWLQJ
WKH LQGLYLGXDO PHPEHU

&RQFOXGLQJ UHPDUNV
,Q WKLV FKDSWHU ZH VDZ KRZ GLIIHUHQW 6DQGLQLVWD JURXSV RI GLIIHUHQW NLQGV
ZRUN PRVWO\ DXWRQRPRXVO\ ZLWK RQO\ YDJXH LGHRORJLFDO SRLQWV FRQQHFWLQJ
DOO WKH SDUW\·V PHPEHUV :H DOVR VDZ KRZ SROLWLFDO DOOLDQFHV RQ VLQJOH
LVVXHV DUH SDUW RI WKH 6DQGLQLVWD UHSHUWRLUH RI SROLWLFV DQG KRZ WKLV JLYHV
VRPH OLPLWHG SRVVLELOLWLHV IRU QRQ6DQGLQLVWDV WR WDNH SDUW LQ 6DQGLQLVWD
SURFHVVHV RI GHFLVLRQ PDNLQJ 7KLV GRHV QRW DOZD\V PHDQ DQ HYHQ SRZHU
VKDULQJ ZLWK WKH FRRSHUDWLQJ JURXS 7KHUHDIWHU ZH VDZ KRZ ZLGH WKH
UHSHUWRLUH RI SROLWLFV IRU 6DQGLQLVWDV LV WRGD\ EXW WKDW DOO RI WKRVH ZKR
VXFFHVVIXOO\ H[HUW SRZHU IROORZ JURXSEDVHG DSSURDFKHV
,W LV QRW GLIILFXOW WR XQGHUVWDQG WKHQ WKDW VXFK D ZLGH UDQJH RI SR
OLWLFDO DFWLYLW\ OHDGV WR D ZLGHUDQJLQJ LQFOXVLRQ RI LQGLYLGXDOV ZKR DOO
HQWHUWDLQ D IHHOLQJ RI RZQHUVKLS D JHQHUDOO\ KLJK OHYHO RI SDUWLFLSDWLRQ
DQG WKDW LW SHUPLWV WU\LQJ RXW GLIIHUHQW DSSURDFKHV E\ GLIIHUHQW JURXSV
7KH VRFLRHFRQRPLF FKDUDFWHULVWLFV RI LQGLYLGXDOV DQG JURXSV PD\ RIIHU
VRPH H[SODQDWLRQ IRU WKH VSHFLILF ZD\ LQ ZKLFK WKH\ HQJDJH SROLWLFDOO\
7KHVH FKDUDFWHULVWLFV DUH VHOGRP TXHVWLRQHG DQG JHQHUDOO\ WDNHQ DV D JLYHQ
7KH H[SODQDWLRQV RQO\ JR DV IDU DV H[SODLQLQJ ZK\ WKH LQGLYLGXDO 6DQGLQ
LVWDV GR ZKDW WKH\ GR JLYHQ WKHLU SRVLWLRQ ZLWKLQ 1LFDUDJXDQ VRFLHW\ LQ
 6DQGLQLVWD SURMHFWV RI FKDQJH

FRPELQDWLRQ ZLWK WKHLU DGKHUHQFH WR 6DQGLQLVWD LGHRORJ\ ,Q WKLV VHQVH

WKH 6DQGLQLVPR RI WKH VW FHQWXU\ VHHPV WR EH PXFK LQ OLQH ZLWK WKH
SURMHFW RI D 6RFLDOLVP IRU WKH VW &HQWXU\
6LPXOWDQHRXVO\ WKLV FKDSWHU FDQQRW H[SODLQ DOO WKDW LV KDSSHQLQJ GXU
LQJ WKH JRYHUQPHQW RI 2UWHJD 6DDYHGUD LQ WHUPV RI WKH WUDQVIRUPDWLRQ
RI SRZHU VWUXFWXUHV 7KH QHROLEHUDO WUDGH SROLFLHV WKURXJK WKH 'RPLQLFDQ
5HSXEOLF²&HQWUDO $PHULFD )UHH 7UDGH $JUHHPHQW '5&$)7$ DQG WKH FRQGL
WLRQV WKH ,QWHUQDWLRQDO 0RQHWDU\ )XQG ,0) GHEW OHYLHV XSRQ WKH FRXQWU\
KDYH QRW FKDQJHG PXFK VLQFH  LQ VSLWH RI DOO WKH 6DQGLQLVWDV ZKR H[HUW
SRZHU LQ VRPH ZD\ 7KHVH DQG VLPLODU FRQGLWLRQV DUH RIWHQWLPHV WDNHQ
IRU JUDQWHG DQG QRW FRQVLGHUHG PXFK IXUWKHU E\ HLWKHU 1LFDUDJXDQV RU
IRUHLJQHUV $GGLWLRQDOO\ WKHUH PD\ EH DQ DSSURSULDWLRQ RI ODUJH DPRXQWV
RI RLO UHYHQXHV E\ LQGLYLGXDO )6/1 OHDGHUV³D FODLP ZKLFK WKH ULJKWZLQJ
SUHVV PDNHV UHSHWLWLYHO\ EXW VR IDU KDV QRW EHHQ DEOH WR VXEVWDQWLDWH 7KLV
ZRXOG KLQGHU WKH IUHH DQG LQGHSHQGHQW GHYHORSPHQW RI 1LFDUDJXD WKH
ZD\ LW VHHPV 6DQGLQLVWD LGHRORJ\ HQYLVLRQV LW 6XFK GLIIHUHQFHV EHWZHHQ
6DQGLQLVWDV FDQ DOVR EH VHHQ DW D ORZHU OHYHO ZKHUH WKH\ GR QRW QHFHVVDULO\
PHDQ GLIIHUHQFH LQ DFFHVV WR IXQGV EXW VWLOO DUH TXLWH DSSDUHQW
 2GVRF "F?NRCP

'GQRMPGA PCJ?RGMLQ UGRF $?QRCPL $SPMNC

7KH SUHFHGLQJ FKDSWHUV VKRZHG KRZ 1LFDUDJXDQV DQG HVSHFLDOO\ 6DQ

GLQLVWDV VHH DOPRVW H[FOXVLYHO\ RWKHU 1LFDUDJXDQV DV FHQWUDO LQ SROLWLFDO
HYHQWV WKDW HLWKHU KDSSHQHG LQ WKH SDVW RU SUHVHQW 7KLV VHHPV WR EH TXLWH
V\VWHPDWLF :H KDYH VHHQ KRZ WKLV XQGHUVWDQGLQJ RI KLVWRU\ ZKLFK SXWV
1LFDUDJXDQ DFWRUV DW WKH FHQWHU VWDJH RI KLVWRU\ LV HIIHFWLYHO\ XVHG WR PR
ELOL]H D GLYHUVH QHW RI JURXSV ZKR DOO VHH WKHPVHOYHV DV DFWLQJ LQ WKH QDPH
RI 6DQGLQLVPR 7KLV QHW UHDFKHV IDU EH\RQG 3UHVLGHQW -RVp 'DQLHO 2UWHJD
6DDYHGUD DQG D IHZ SHRSOH DURXQG KLP $OWKRXJK D JUHDW SHUFHQWDJH RI
WKH SRSXODWLRQ PD\ PRELOL]H WR SDUWLFLSDWH LQ D JHQHUDO VWUXJJOH IRU VRFLDO
FKDQJH WKHLU HIIHFW LV VRPHZKDW OLPLWHG 7KH ZHDOWK RI WKH WZR ROLJDUFK
IDPLOLHV VHHPV LPSRVVLEOH WR WRXFK XQGHU DOO W\SHV RI JRYHUQPHQWV 6R
LQVWHDG RI MXGJLQJ WKH 6DQGLQLVWD JRYHUQPHQW E\ KRZ ZHOO LW PDQDJHV WR
UHGLVWULEXWH ZHDOWK 6DQGLQLVWDV MXGJH WKHLU RZQ SROLFLHV E\ ZKHUH WKH\
FRXOG OHDG RU FRXOG KDYH OHG LI WKH\ ZHUH DOORZHG WR FRQWLQXH IRUHYHU

7KLV FKDSWHU VKRZV KRZ WKHUH LV D XQLTXH KLVWRULFDO UHODWLRQVKLS ZLWK

(DVWHUQ (XURSH DQG WKDW LW LQIOXHQFHV WKH FXUUHQW XQGHUVWDQGLQJ RI KLVWRU\
,W JLYHV \HW DQRWKHU FDXVH IRU WKH 6DQGLQLVWD PRYHPHQW WR PRELOL]H DURXQG
7KH XQLTXHQHVV RI WKH 1LFDUDJXDQ FDVH PHDQV WKDW WKH FXUUHQW WDFWLFV
DQG VWUDWHJLHV RI WKH 6DQGLQLVWDV FDQQRW HDVLO\ EH DSSOLHG DQ\ZKHUH HOVH
HYHQ WKRXJK PDQ\ RWKHU FRXQWULHV ILQG WKHPVHOYHV LQ D VLPLODU VLWXDWLRQ
HFRQRPLFDOO\ 7KLV UHODWLRQVKLS LV H[SODLQHG E\ SUHVHQWLQJ VRPH RI WKH SHU
VRQDO VWRULHV WKRVH 6DQGLQLVWDV ZKR ZHQW WR D VFKRRO RI SROLWLFDO OHDGHUVKLS
LQ WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5 *HUPDQ 'HPRFUDWLF 5HSXEOLF 
7KH PDMRULW\ RI WKHVH VWXGHQWV SUHVHQWHG WKHLU WLPH LQ (DVW *HUPDQ\ WR
PH DV KDYLQJ KDG D ODVWLQJ HIIHFW RQ WKHLU YLHZ RI SROLWLFV 7KLV FKDSWHU
VKRZV KRZ VRPH RI WKHP DUH LQ SRVLWLRQV RI SROLWLFDO SRZHU ZKHUHE\ WKH\
DUH OLNHO\ WR VKDSH WKH SROLFLHV RI WKH FXUUHQW JRYHUQPHQW


 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

1LFDUDJXDQ SDUWLFXODULWLHV LQ WKH FXUUHQW JOREDO V\V

WHP
%HVLGHV HFRQRPLF LVVXHV 1LFDUDJXDQ GHSHQGHQF\ RQ RWKHU SRZHUV LV FRP
SOH[ WHUUDLQ 6RPH RI WKH FXOWXUDO DVSHFWV VXUYLYHG IURP WKH SUHYLRXV
SKDVH RI HFRQRPLF FRRSHUDWLRQ ZLWK WKH 6RYLHW 8QLRQ DQG 6DQGLQLVWDV
QRZ VHHN WR FRQYHUW WKDW LQWR UHQHZHG HFRQRPLF OLQNV (FRQRPLF OLQNV
WR WKH 8QLWHG 6WDWHV ZHUH DOUHDG\ LQ SODFH E\  :KHQ WKHVH OHG WKH
FRXQWU\ LQWR D JOREDO FULVLV 1LFDUDJXDQ DFWRUV FRXOG RQO\ LQIOXHQFH KRZ
WKH FULVLV ZDV PDQDJHG LQ 1LFDUDJXD 1RRQH LQ 1LFDUDJXD FRXOG GHFLGH
XSRQ LWV H[LVWHQFH QRU VWUHQJWK 7KH JOREDO FDSLWDOLVW LQWHUGHSHQGHQFH KDV
D GLUHFW HIIHFW RQ 1LFDUDJXDQ GDLO\ OLIH ZKLFK KDUGO\ FDQ EH LQIOXHQFHG E\
DQ\ 1LFDUDJXDQ JRYHUQPHQW SROLFLHV 7KH FXUUHQW ILQDQFLDO FULVLV ² 
ZKLFK KDV FOHDUO\ DIIHFWHG 1LFDUDJXD PDGH WKH 1LFDUDJXDQ ODFN RI LQIOX
HQFH FOHDU RQFH PRUH 7KH 1LFDUDJXDQ JRYHUQPHQW FDQ RQO\ GHFLGH ZKHUH
LW ZLOO FXW VSHQGLQJ QRW ZKHWKHU LW ZLOO GR VR 2Q  -DQXDU\  WKH
SUHVLGHQWLDO GHFUHH WR FRQIURQW WKH ILQDQFLDO FULVLV ZDV UHYHDOHG /D 9R]
GHO 6DQGLQLVPR   $FFRUGLQJ WR LW JRYHUQPHQW ZRUNHUV ZKR PDGH
XQGHU & D \HDU URXJKO\  86' ZRXOG FRQWLQXH WR HQMR\ ZDJH
LQFUHDVHV ZKLOH WKRVH HDUQLQJ PRUH ZRXOG QRW QR YDFDQW SRVLWLRQV ZRXOG
EH ILOOHG GXULQJ WKH ILUVW QLQH PRQWKV RI WKH \HDU DQG WKH ZRUNLQJ GD\ IRU
SXEOLF HPSOR\HHV ZRXOG HQG DW SP DPRQJ RWKHU WKLQJV $OO WKLV ZDV SDUW
RI D UHDFWLRQ WR D ORZHU LQIOX[ RI PRQH\
0RVW 6DQGLQLVWDV EHOLHYH WKH 8QLWHG 6WDWHV LV GLUHFWO\ UHVSRQVLEOH IRU
WKH FXUUHQW FULVLV $FFRUGLQJ WR VRPH YRLFHV LQ WKH PHGLD WKH FULVLV LV
VWURQJHU LQ 1LFDUDJXD WKDQ DQ\ZKHUH HOVH LQ WKH ZRUOG $)3  \HW
DFFRUGLQJ WR PDQ\ RI WKH DJULFXOWXUH H[SHUWV DW WKH 1*2 6HUYLFLR GH ,QIRU
PDFLyQ 0HVRDPHULFDQR VREUH $JULFXOWXUD 6RVWHQLEOH 6,0$6  LQ  WKH FULVLV
GLG QRW VKRZ LQ PDQ\ SDUWV RI WKH FRXQWU\ 'HQLV &iFHUHV H[SODLQHG WKLV

:HOO VHH WKHUH DUH PDQ\ DUHDV ZKHUH WKHUH LV QR VXEVWDQWLDO

IORZ RI PRQH\ EXW ZKHUH WKHUH LV D FRQVLGHUDEOH DPRXQW RI
IRRG VHFXULW\ VLPSO\ EHFDXVH WKH SHRSOH JURZ WKHPVHOYHV

6XEVLVWHQFH IDUPLQJ KDV EHHQ WKH WDUJHW IRU PDQ\ RI WKH JRYHUQPHQW
SURJUDPV VXFK DV ¶+DPEUH &HUR· $FFRUGLQJ WR &iFHUHV DQG KLV FROOHDJXHV
LW PD\ QRW PDNH WKH FRXQWU\ ULFK EXW WR D FHUWDLQ H[WHQW LW PDNHV IDUPHUV
PRUH LQGHSHQGHQW
1LFDUDJXDQ SDUWLFXODULWLHV LQ WKH FXUUHQW JOREDO V\VWHP 

,W LV QRW MXVW 1LFDUDJXD ZKLFK LV XQDEOH WR GR PXFK DERXW WKH FXUUHQW

LQFUHDVH LQ JOREDO GHSHQGHQF\ DQG WKH WUHQG WRZDUGV SULYDWL]DWLRQ JRLQJ
ZLWK LW $PLQ   7KH VRFLDOLVW JRYHUQPHQWV RI /DWLQ $PHULFD DUH QRW DOO
WKH VDPH ² WKH VRPHZKDW OLPLWHG FKDQJHV WR WKH HFRQRP\ XQGHU %UD]LO·V
/XOD LV QRW DV UDGLFDO D FKDQJH IURP SROLWLFV DV XVXDO DV 9HQH]XHOD·V +XJR
&KDYH]·V 3URMHFW IRU D 6RFLDOLVP RI WKH VW &HQWXU\ 7KH VRFLDOLVP RI &XED LV
UHSUHVHQWHG E\ DQ DGPLQLVWUDWLRQ WKDW LV WKH VDPH DV GXULQJ 6RYLHW GD\V
DQG WKH &XEDQ SROLWLFDO DQG HFRQRPLF V\VWHP KDV RQO\ FKDQJHG WR D OLPLWHG
H[WHQG VLQFH WKH V :LOP   1LFDUDJXD LV GLIIHUHQW IURP RWKHU FRXQ
WULHV LQ WKDW LW LV WKH RQO\ RQH ZKLFK H[SHULHQFHG  \HDUV DV D 6RYLHWDOOLHG
FRXQWU\ ZLWK D PL[HG HFRQRP\ GXULQJ WKH V DQG DIWHUZDUG PXFK RI
WKH VDPH QHROLEHUDO UHIRUPV DV PRVW RWKHU /DWLQ $PHULFDQ FRXQWULHV ,W
QRZ WULHV WR UHHVWDEOLVK WKH UHYROXWLRQ WHPSRUDULO\ HQGHG LQ 
,Q 1LFDUDJXD SHRSOH ZKR DUH QRW 6DQGLQLVWDV DQG KDYH PRUH ULJKWZLQJ
YLHZV RQ LQWHUQDO 1LFDUDJXDQ LVVXHV RIWHQWLPHV VHH WKH VWDWH RI ZRUOG
FDSLWDOLVP VXUSULVLQJO\ FULWLFDOO\ $W WKH VDPH WLPH WKH DLG ZKLFK FRPHV
IURP RWKHU FRXQWULHV WR WKH 2UWHJD 6DDYHGUD JRYHUQPHQW GRHV QRW RQO\
RULJLQDWH LQ FRXQWULHV ZLWK /HIWLVW JRYHUQPHQWV 7RGD\ 1LFDUDJXD UHFHLYHV
KHOS IURP DQG FRRSHUDWHV ZLWK ,UDQ 0RUULVVH\   /LE\D &DVWUR  
DQG 5XVVLD VHH DOVR ³ 7KH *HRUJLD FRQIOLFW S   2QH PDLQ UHDVRQ IRU
WKH VXSSRUW WKH\ UHFHLYH IURP WKHVH FRXQWULHV VHHPV WR EH WKH FRXQWU\·V
VWURQJ SRVLWLRQ DJDLQVW WKH LQIOXHQFH RI WKH 8QLWHG 6WDWHV LQ /DWLQ $PHULFD
7KH PLOLWDU\ SURWHFWLRQ DQG SROLWLFDO OLQNV RIIHUHG E\ WKHVH FRXQWULHV DUH
FRPELQHG ZLWK HFRQRPLF DLG DQG GHYHORSPHQW SURMHFWV (YHQ VRPH PRUH
ULJKWZLQJ JURXSV ZLWKLQ WKH WKLUG ZRUOG DUH ZRUNLQJ ZLWK WKH 2UWHJD
6DDYHGUD JRYHUQPHQW
7KH H[WHQW WR ZKLFK FODVVLF RU ZHVWHUQ FRQFHSWV DUH TXHVWLRQHG LV GLI
IHUHQW LQ 1LFDUDJXD WKDQ PDQ\ RWKHU SODFHV ,Q VRPH SDUWV RI WKH SHULSKHU\
WKH ¶FRORQL]DWLRQ RI WKH PLQG· XQGHUVWRRG DV WKH LPSRUW RI FRQFHSWV LGHDV
DQG PRUDO VWDQGDUGV IURP WKH FHQWHU LV TXHVWLRQHG 7KLV LQFOXGHV WKH
LGHD RI ZHVWHUQ UDWLRQDOLW\ ² DOVR ZRUOG YLHZV VXFK DV KLVWRULFDO PDWHUL
DOLVP DUH TXHVWLRQHG DV EHLQJ WRR (XUR FHQWHUHG 4XLMDQR   7KLV LV
WUXH LQ VHYHUDO 0LGGOH (DVWHUQ FRXQWULHV ZKHUH UHOLJLRXV JURXSV UDWKHU
WKDQ VRFLDOLVW RQHV QRZ PDNH XS WKH PDLQ SDUW RI UHVLVWDQFH DJDLQVW ZHVW
HUQ LQIOXHQFH 7KLV LV QRW WKH FDVH LQ 1LFDUDJXD +HUH WKH UKHWRULF DQG

 ,Q WKH  1$72 DWWDFN DJDLQVW /LE\D 1LFDUDJXD ZDV RQH RI WKH PRVW RSHQO\ SUR
QRXQFHG VXSSRUWHUV RI /LE\D DQG HYHQ RIIHUHG WR UHSUHVHQW WKH FRXQWU\ ZLWKLQ WKH 8QLWHG
1DWLRQV <HW LW LV SUREDEOH WKDW GXH WR WKH ZDU WKH GHOLYHU\ RI DLG E\ /LE\D ZDV HQGHG
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

FRQFHSWV RI VRFLDOLVP PRVW FORVHO\ UHVHPEOH WKRVH RI (DVWHUQ (XURSHDQ VR

FLDOLVPFRPPXQLVP 7KHVH FRQFHSWV ZHUH ODUJHO\ OHDUQHG GXULQJ 6RYLHW
WLPHV E\ 1LFDUDJXDQ VWXGHQWV VWXG\LQJ WKHUH 1LFDUDJXD GRHV QRW VHHP
WR KDYH IROORZHG JOREDO WUHQGV LQ WKLV VHQVH 0DQ\ LQWHUQDWLRQDO UDGLFDO
DQDO\VWV VXFK DV ,PPDQXHO 0DXULFH :DOOHUVWHLQ WKRXJKW LQ WKH V WKDW
WKLV ¶ROG /HIW· ZDV JRQH IRUHYHU :DOOHUVWHLQ VWDWHG WKH IROORZLQJ LQ 

/HW XV SRQGHU WKH SROLWLFDO FRQVHTXHQFHV RI WKH ZRUOG HFR

QRPLF GLIILFXOWLHV RI WKH SHULRG ²>@ )LUVW DQG IRUH
PRVW LW KDV PHDQW WKH VHULRXV GLVFUHGLWLQJ RI WKH 2OG /HIW WKH
HUVWZKLOH DQWLV\VWHPLF PRYHPHQWV ² WKH QDWLRQDO OLEHUDWLRQ
PRYHPHQWV LQ WKH H[FRORQLDO ZRUOG WKH SRSXOLVW PRYHPHQWV
LQ /DWLQ $PHULFD EXW DOVR WKH &RPPXQLVW SDUWLHV LQ (XURSH
HDVW DQG ZHVW DQG WKH VRFLDOGHPRFUDWLFODERU PRYHPHQWV
LQ ZHVWHUQ (XURSH DQG 1RUWK $PHULFD 0RVW RI WKHP KDYH IHOW
WKDW LQ RUGHU WR VXUYLYH HOHFWRUDOO\ WKH\ QHHGHG WR EHFRPH
HYHQ PRUH FHQWULVW WKDQ EHIRUH 7KHLU PDVV DSSHDO KDV DV
D UHVXOW VHULRXVO\ GLPLQLVKHG DQG WKHLU VHOIFRQILGHQFH KDV
GHFOLQHG WR WKH VDPH GHJUHH ,Q DQ\ FDVH WKH\ FDQ VFDUFHO\
DQ\ ORQJHU VHUYH DV JXDUDQWRUV RI /LEHUDO UHIRUPLVP IRU LP
SDWLHQW DQG LPSRYHULVKHG SRSXODWLRQV 7KH\ DUH WKHUHIRUH
XQDEOH WR VHUYH DV D PHFKDQLVP RI FRQWURO SUHYLRXVO\ WKH
SULQFLSDO PHFKDQLVP RI FRQWURO RI WKH SROLWLFDO UHDFWLRQV RI
VXFK SRSXODWLRQV PDQ\ RI ZKRP KDYH WXUQHG HOVHZKHUH ² WR
SROLWLFDO DSDWK\ ZKLFK KRZHYHU LV DOZD\V D WHPSRUDU\ ZD\
VWDWLRQ  WR IXQGDPHQWDOLVW PRYHPHQWV RI DOO NLQGV DQG LQ
VRPH FDVHV WR QHRIDVFLVW PRYHPHQWV 7KH SRLQW LV WKDW WKHVH
SRSXODWLRQV KDYH EHFRPH YRODWLOH RQFH DJDLQ DQG WKHUHIRUH
GDQJHURXV RQFH DJDLQ IURP WKH SRLQW RI YLHZ RI WKH SULYLOHJHG
VWUDWD LQ WKH ZRUOGV\VWHP :DOOHUVWHLQ 

7KH OHYHO RI DSDWK\ VHHPV WR EH VRPHZKDW GLIIHUHQW LQ 1LFDUDJXD WKDQ

PDQ\ RWKHU SODFHV DQG FRQWUDU\ WR :DOOHUVWHLQ·V SUHGLFWLRQV WKH FDOOV IRU
VWDWH EDVHG VRFLDOLVP DUH EDFN $PRQJ WKRVH VWDWLQJ VRPH IRUP RI VWDWH
VRFLDOLVP DV WKHLU JRDO JOREDOO\ WKHUH DUH GLIIHUHQFHV DV KRZ RQH UHODWHV
WR SUHYLRXV H[SHULPHQWV ZLWK VRFLDOLVP DQG VSHFLILFDOO\ WKH 6RYLHW 8QLRQ
,Q WKH :HVW DQG PXFK RI /DWLQ $PHULFD WKHUH KDV DOZD\V EHHQ D FHUWDLQ
SRUWLRQ RI 7URWVN\LVP DPRQJ WKH UDGLFDO /HIW ZKLFK YLHZHG WKH 6RYLHW
8QLRQ DV KDYLQJ ORVW LWV SURJUHVVLYH PLVVLRQ LQ WKH V &KLOFRWH  
&RQQHFWLRQV WR D IRUPHU FHQWHU 

,Q WKH FDVH RI 1LFDUDJXD ZLWK WKH )6/1·V UHJLPHV FRPSDUDWLYHO\ QRW DOO
WKDW WRWDOLWDULDQ FKDUDFWHU GXULQJ WKH V PRVW UDGLFDO 6RYLHW FULWLFV
WUDGLWLRQDOO\ VXSSRUWHG WKH 6DQGLQLVWD UHJLPH DV ZHOO 1RZDGD\V LQ WXUQ
UHPDUNDEO\ OLWWOH FULWLFLVP RI DQ\WKLQJ UHODWHG WR WKH 6RYLHW 8QLRQ FDQ EH
IRXQG DPRQJ 6DQGLQLVWDV

&RQQHFWLRQV WR D IRUPHU FHQWHU

7UDGHZLVH 1LFDUDJXD FDQ EH VDLG WR EH PRUH LQGHSHQGHQW IURP WKH 8QLWHG
6WDWHV WKURXJK WKH JURZWK RI QHZ WUDGLQJ SDUWQHUV LQ /DWLQ $PHULFD DQG
$VLD WKDQ LW ZDV LQ WKH \HDUV RI 6RPR]D RU WKH ILUVW IHZ \HDUV IROORZLQJ
HOHFWRUDO GHIHDW LQ  *LYHQ D FODVVLF 'HSHQGHQF\ 7KHRU\ LQWHUSUHWD
WLRQ LQ ZKLFK HFRQRPLF OLQNV DUH GHFLVLYH WKLV FRXOG H[SODLQ WKH UHODWLYH
LQGHSHQGHQFH WKH FRXQWU\ KDV PDLQWDLQHG IURP WKH 8QLWHG 6WDWHV DQG WR
D OHVVHU H[WHQW IURP :HVWHUQ (XURSH
:KDW LW GRHV QRW H[SODLQ LV ZK\ WKH 6DQGLQLVWD LGHRORJ\ DV ZRUGHG E\
JRYHUQPHQW RIILFLDOV DQG D VXEVWDQWLDO SDUW RI WKH SRSXODWLRQ LV VR KRVWLOH
WRZDUG WKH 8QLWHG 6WDWHV DQG DW WKH VDPH WLPH VR IULHQGO\ WR 5XVVLD 5XVVLD
KDV PLOLWDU\ SRWHQF\ EXW LQ WHUPV RI WUDGH LW KDV UHODWLYHO\ OLWWOH LPSDFW
RQ 1LFDUDJXD 7KH PDLQ HYHQW WKDW LQYROYHG 5XVVLD GXULQJ P\ VWD\ LQ
1LFDUDJXD ZDV WKH ZDU LQ *HRUJLD ZKHUH 1LFDUDJXD VXSSRUWHG 5XVVLD VHH
DOVR ³ 7KH *HRUJLD FRQIOLFW S   $OWKRXJK WKH 1LFDUDJXDQ LQYROYHPHQW
LQ WKDW ZDV RQO\ DQ DFWLRQ E\ 2UWHJD 6DDYHGUD LW ZDV FOHDU DPRQJ WKH
6DQGLQLVWDV WKH DFWLRQV WDNHQ E\ 2UWHJD 6DDYHGUD ZHUH VRPHWKLQJ WKH\
VWURQJO\ IDYRUHG 7KH KDQGLQJ RI WKH PHGDO WR WKH IRUPHU (DVW *HUPDQ
PLQLVWHU VHH DOVR ³ $ZDUG JLYHQ WR ODVW 0LQLVWHU RI (GXFDWLRQ RI (DVW *HUPDQ\
DQG DOOLDQFH ZLWK +RQGXUDV  -XO\   S   ZKR DW WKH WLPH KHOG QR VWDWH
SRZHU VHHPHG QRW WR EH GRQH LQ FRQQHFWLRQ ZLWK DQ\ QRZH[LVWLQJ SRZHU
UHODWLRQ 7KH IROORZLQJ VKRZV KRZ DPRQJ PDQ\ IRUPHU 6RYLHW 8QLRQ DQG
WKH (DVWHUQ EORF WUDLQHG 6DQGLQLVWDV DW YDULRXV OHYHOV FRQWLQXH WR KDYH D
SDUWLFXODUO\ SRZHUIXO LQIOXHQFH RULJLQDWLQJ LQ WKHLU SHUVRQDO H[SHULHQFHV
LQ WKH V ZKHQ WKH\ ZHQW WR (DVWHUQ (XURSH WR VWXG\ ,W LV WKLV ZKLFK
PDLQO\ FRQWULEXWHV WR WKH VSHFLDO XQGHUVWDQGLQJ RI 5XVVLD LQ 1LFDUDJXD
WRGD\
,W KDV EHHQ DUJXHG WKDW WKH 6RYLHW 8QLRQ DQG WKH (DVWHUQ EORF QHYHU
UHSUHVHQWHG DQ\ NLQG RI FHQWHU RI DFFXPXODWLRQ LQ 'HSHQGHQF\ 7KHRU\
VHQVH ,Q WKH 1LFDUDJXDQ SHUVSHFWLYH RI WKLQJV WKH IDFW WKDW LW KDG WKH
LPSRUWDQFH LW GLG WUDGHZLVH DQG LWV SRVLWLRQ DV D FHQWHU IRU VWXG\ FRXOG
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

PDNH LW ORRN OLNH D FHQWHU 7KDW LV HVSHFLDOO\ HYLGHQW LQ WKH LQIOXHQFH (DVW
HUQ (XURSH KDV KDG WKURXJK HGXFDWLRQ 7KH XVH RI ZHVWHUQVW\OH HGXFDWLRQ
E\ HOLWHV RI SHULSKHUDO FRXQWULHV LV E\ PDQ\ DGKHUHQWV RI 'HSHQGHQF\ 7KH
RU\ VHHQ DV DQ LQWHJUDO SDUW LQ WKH XSNHHS RI WKH UHODWLRQVKLS EHWZHHQ
FRUH DQG QRQFRUH 4XLVW   6LPLODUO\ LQ WKLV VHQVH WKH UHODWLRQVKLS
EHWZHHQ (DVWHUQ (XURSH DQG WKH FXUUHQW 1LFDUDJXD KDV D ORW WR GR ZLWK WKH
HGXFDWLRQ SURJUDPV PDQ\ 6DQGLQLVWD FDGUHV UHFHLYHG WKHUH LQ WKH V
6KRUWO\ DIWHU WKH YLVLW RI WKH IRUPHU PLQLVWHU RI HGXFDWLRQ RI WKH ''5
WR 1LFDUDJXD D IRUPHU (DVW *HUPDQ VWXGHQW RI DQ LQWHUQDWLRQDO VFKRRO RI
SROLWLFDO FDGUHV LQ (DVW *HUPDQ\ LQ WKH V FRQWDFWHG PH WKURXJK D IULHQG
RI PLQH LQ %HUOLQ 7KH 1LFDUDJXDQV ZHUH \RXQJ 1LFDUDJXDQ 6DQGLQLVWDV LQ
OLQH IRU WDNLQJ RYHU KLJKHU RIILFHV LQ WKH JRYHUQPHQW DQG WKH SDUW\ DW WKH
WLPH RI WKHLU WUDYHO 7KH (DVW *HUPDQ VWXGHQW RQO\ KDG VRPH IDOVH QDPHV
RI VRPH RI KLV FRVWXGHQWV EXW DVNHG P\ KHOS LQ ILQGLQJ KLV 1LFDUDJXDQ
FODVVPDWHV 7KURXJK WKH XVH RI 79 DQG UDGLR , HYHQWXDOO\ IRXQG D QXPEHU
RI VWXGHQWV ZKR DWWHQGHG D \HDU RI VWXG\ DW WKH VFKRRO

7KH VWXGHQWV

:KHQ PHHWLQJ WKH 1LFDUDJXDQV ZKR KDG VWXGLHG DW WKLV VFKRRO LQ WKH ''5
, WULHG WR ILJXUH RXW LI DQG KRZ WKHLU YLHZ RQ (DVWHUQ (XURSH DQG WKH FRXQ
WU\ ZKHUH WKH\ VWXGLHG WKH ''5 LV VWLOO LQIOXHQFHG E\ WKDW WLPH ,Q PRVW
FDVHV LW GRHV QRW VHHP WR EH D GHFLVLYH IDFWRU ZKHWKHU WKH\ KDYH D MRE
RU WKH W\SH RI MRE WKH\ KDYH ZLWKLQ WKH FXUUHQW JRYHUQPHQW ZKHQ GHWHU
PLQLQJ KRZ WKH\ VHH WKH FXUUHQW JRYHUQPHQW DQG WKH YDULRXV SROLWLFDO
HYHQWV WKDW KDSSHQ LQ 1LFDUDJXD 7KH IRUPDO LQWHUYLHZV , PDGH RI WKHVH
VWXGHQWV ZHUH KXJHO\ GLIIHUHQW LQ WHUPV RI OHQJWK DQG VRPHZKDW GLIIHUHQW
LQ WHUPV RI FRQWHQWV 7KH DPRXQW RI LQIRUPDWLRQ WKH\ SURYLGHG DQG WKH
W\SH RI LQIRUPDWLRQ WKH\ ZHUH ZLOOLQJ WR YROXQWHHU GLIIHUHG FRQVLGHUDEO\
, DGMXVWHG P\ LQWHUYLHZ TXHVWLRQV DV , ZHQW DORQJ GXULQJ HDFK LQWHUYLHZ
WR DFFRPPRGDWH IRU WKHVH GLIIHUHQFHV 6RPH RI WKHVH LQIRUPDQWV JDYH QR
PRUH LQIRUPDWLRQ WKDQ ZKDW , KHDUG EHIRUH LQ WKH VWUHHWV RI /HyQ , FKRRVH
KHUH WR PHQWLRQ D VRPH RI WKH VWXGHQWV , IRXQG DV WKHLU LQWHUYLHZV JDYH
PH WKH PRVW LQVLJKW

2VVLHO 0HQGLHWD ZDV DPRQJ WKH ILUVW VWXGHQWV WR JR WR (DVW *HUPDQ\ LQ

WKH HDUO\ V $W WKDW WLPH WKH UHYROXWLRQ LQ 1LFDUDJXD ZDV QRW
VHHQ DV SDUWLFXODUO\ GHYHORSHG VR DOO SDUWLFLSDQWV UHFHLYHG FRGH
2VVLHO 0HQGLHWD FUHDWHV EUDFHOHWV RXW RI FRORUHG WKUHDGV LQ KLV UHVWDXUDQW
LQ &KLQDQGHJD +H FRQVLGHUV ZKHWKHU LW PDNHV VHQVH WR VHOO VXFK EUDFHOHWV
WR VWXGHQWV RI VRFLDOLVP LQ *HUPDQ\ +HUH KH PDNHV D EUDFHOHW LQ UHGDQG
EODFN WKH 6DQGLQLVWD FRORUV

QDPHV WR XVH ZKLOH LQ *HUPDQ\ LQ FDVH RI D WDNHRYHU E\ &RQWUD

IRUFHV
0HQGLHWD FRQWDFWHG PH DIWHU UHDGLQJ DERXW P\ SURMHFW RI ILQGLQJ
VWXGHQWV IURP KLV VFKRRO LQ WKH QHZVSDSHU (O 1XHYR 'LDULR , PHW
KLP ZLWKLQ  PLQXWHV DIWHU KH FDOOHG PH DV KH KDSSHQHG WR EH LQ
/HyQ DW WKH WLPH 0HQGLHWD QRZ KDV D UHVWDXUDQW LQ IURQW RI FLW\
SDUOLDPHQW LQ &KLQDQGHJD +H DOVR PDNHV PRQH\ FUHDWLQJ EUDFHOHWV
RXW RI FRORUHG WKUHDGV

0HUFHGHV &DPSRV 0RQWHQHJUR , PHW LQ WKH YLOODJH RI 0DOSDLVLOOR MXVW D

IHZ NLORPHWHUV RXWVLGH RI /HyQ $ IRUPHU WHDFKHU LQ *HUPDQ\ ZURWH
GRZQ KHU QDPH DQG FLW\ HYHQ WKRXJK WKH\ ZHUH HQFRXUDJHG QRW WR
LQWHUFKDQJH DGGUHVVHV 7R XSGDWH WKH DGGUHVVHV , KDG JRQH WR WKH
YRWHUV· UHJLVWUDWLRQ RIILFH LQ /HyQ $IWHU H[SODLQLQJ P\ SODQV WKH\
IRXQG WKH DGGUHVV RI &DPSRV 0RQWHQHJUR DQG WKDW RI VHYHUDO RI KHU
FRVWXGHQWV 7KLV VHUYLFH RQ WKHLU SDUW ZDV OLNHO\ GRZQULJKW LOOHJDO
EXW WKHUH VHHPHG WR EH DQ XQGHUVWDQGLQJ DPRQJ WKH 6DQGLQLVWD
ZRUNHUV DW WKH RIILFH WKDW LW ZDV D VHUYLFH WKH\ SURYLGHG WR D FRPUDGH
UHSUHVHQWLQJ WKH ''5 /LNH PRVW &DPSRV 0RQWHQHJUR VWLOO OLYHG LQ
WKH VDPH YLOODJH VKH OLYHG LQ GXULQJ WKH V
:KHQ , DUULYHG LQ 0DOSDLVLOOR RQ WKH EXV LQVWHDG RI WU\LQJ WR ILQG


0HUFHGHV &DPSRV 0RQWHQHJUR FHQWHU VWDQGV LQ WKH GRRUZD\ RI KHU KRXVH
LQ 0DOSDLVLOOR WRJHWKHU ZLWK KHU GDXJKWHUV 7KH\ XUJH PH WR WDNH WKH SKRWR
TXLFNO\ DV QHLJKERUV VWDUW JDWKHULQJ DURXQG

WKH DGGUHVV , DVNHG WKH ILUVW SROLFHPDQ , VSRWWHG WR VHH LI KH FRXOG

WHOO PH ZKHUH 0HUFHGHV &DPSRV OLYHG DQG KH SRLQWHG PH RQH EORFN
GRZQ D URDG , NQRFNHG RQ WKH GRRU ZKHUH &DPSRV 0RQWHQHJUR VDW
ZLWK WZR \RXQJ JLUOV , DVNHG KHU LI VKH ZHUH WKH 0HUFHGHV &DPSRV
ZKR ZHQW WR VWXG\ LQ (DVW *HUPDQ\ 6KH GLG QRW VHHP WR ZRQGHU
KRZ , ZRXOG NQRZ WKDW 6KH VSRNH WR PH DV LI VKH IRXQG LW WR EH
WKH PRVW QDWXUDO WKLQJ LQ WKH ZRUOG WKDW D IRUHLJQHU ZRXOG FRPH E\
DVNLQJ KHU DERXW WKDW :LWKLQ PLQXWHV VKH ZDV UHDG\ WR JLYH PH DQ
DFFRXQW RI KRZ WKLQJV ZHUH EDFN WKHQ DQG ZKDW KDG FKDQJHG VLQFH

0DUtD $QWRQLHWD %ODQGyQ 0RQWHQHJUR LV GLIIHUHQW IURP PDQ\ RI WKH

RWKHU VWXGHQWV LQ WKDW VKH QR ORQJHU OLYHV LQ WKH VDPH YLOODJH DV LQ WKH
V , IRXQG KHU KRXVH LQ 0DWDJDOSD LQ QRUWKHUQ 1LFDUDJXD :LWK
WKH QHZ 2UWHJD 6DDYHGUD JRYHUQPHQW VKH EHFDPH ´VRPHWKLQJ OLNH
D PLQLVWHUµ DV KHU VLVWHU H[SODLQHG WR PH FDVXDOO\ 7KH RIILFLDO WLWOH
LV ¶'LUHFWRUD (MHFXWLYD GH OD 2ILFLQD GH eWLFD 3~EOLFD 2(3 · ZKHUH VKH
LV WR PRQLWRU DQG DXGLW WKH RWKHU PLQLVWULHV WR SUHYHQW FRUUXSWLRQ
, WDONHG WR KHU VHYHUDO WLPHV ODWHU LQ 0DQDJXD DQG IROORZHG KHU LQ
VRPH RI KHU ZRUN WDONLQJ WR VWXGHQWV DW WKH 8QLYHUVLGDG 1DFLRQDO
$XWyQRPD GH 1LFDUDJXD 81$1 LQ 0DQDJXD RQ FRGHV RI HWKLFV


&RQQHFWLRQV WR D IRUPHU FHQWHU 

*XLPDU $PLQWD $ULDV DOVR ZDV VXFFHVVIXO :KHQ , ILUVW PHW KHU VKH
ZRUNHG DW FXVWRPV LQ WKH FLW\ RI (VWHOt , UDQ DURXQG WRZQ DIWHU
KHU DQG ILQDOO\ HQFRXQWHUHG KHU DW D 6DQGLQLVWD PHHWLQJ DW GHSDUWD
PHQWR OHYHO 6KH GLG QRW KDYH WLPH ULJKW WKHQ DQG ZKHQ , PHW KHU
DJDLQ D IHZ ZHHNV ODWHU VKH KDG MXVW WDNHQ RYHU DV SUHVLGHQW RI WKH
,QVWLWXWR 1LFDUDJHQVH GH )RPHQWR 0XQLFLSDO ,1,)20 DW QDWLRQDO OHYHO
LQ 0DQDJXD 'XULQJ WKH  \HDUV RXW RI SRZHU VKH VXUYLYHG DPRQJ
RWKHU WKLQJV WKURXJK ZRUNLQJ IRU WKH 6DQGLQLVWD PD\RU RI (VWHOt
6KH ZHQW WR *HUPDQ\ ZLWK D JURXS RI WHQ VWXGHQWV DQG ZDV RQO\
 \HDUV ROG 6KH KDG EHHQ D PHPEHU RI WKH -XYHQWXG 6DQGLQLVWD -6
VLQFH VKH ZDV  \HDUV ROG DQG ZDV RQH RI WKH JURXS·V IRXQGHUV 6KH
MRLQHG EHFDXVH VKH ZDQWHG WR WHDFK DV SDUW RI WKH OLWHUDF\ SURJUDP
:KHQ VKH FDPH EDFN VKH VWDUWHG ZRUNLQJ ZLWK FKLOGUHQ DQG DQ\
WKLQJ WR GR ZLWK UHFUHDWLRQ 6KH YROXQWHHUHG WR MRLQ WKH DUP\ WR
ILJKW WKH &RQWUDV $IWHU WKH ORVW HOHFWLRQV RI  VKH ZRUNHG LQ
WKH PLQLVWU\ RI HGXFDWLRQ DQG VHFXUHG D PDVWHU GHJUHH ZKLFK ZDV
FUXFLDO LQ REWDLQLQJ KHU FXUUHQW SRVLWLRQ 'XULQJ WKH \HDUV RI RSSR
VLWLRQ VKH GLG QRW VWRS ZRUNLQJ ZLWK WKH 6DQGLQLVWD PRYHPHQW DQG
IRFXVHG KHU ZRUN RQ DQ LQGHSHQGHQW \RXWK UDGLR VWDWLRQ LQ (VWHOt
6KH UHWXUQHG WR ZRUN LQ FLW\ JRYHUQPHQW LQ  DIWHU VHUYLQJ DV
FDPSDLJQ OHDGHU IRU WKH )6/1 'XULQJ WKLV WLPH VKH FRQWLQXHG ZLWK
KHU UDGLR MRE LQ ¶FLYLO VRFLHW\·

5RJHOLR $QWRQLR 6HOYD *RQ]DOHV JDYH PH D PDUNHGO\ GLIIHUHQW UHSRUW RI

WKH WLPH DW WKH VFKRRO WKDQ DOO WKH RWKHUV 6HOYD *RQ]DOHV ZDV VWLOO D
FORVH IULHQG RI $PLQWD $ULDV DQG KH DOVR OLYHG LQ (VWHOt EXW KH QRZ
LGHQWLILHG ZLWK WKH 056 +H ZRUNHG LQ WKH PLQLVWU\ RI LQWHULRU LQ
WKH V DQG LQ WKH HDUO\ V LQ WKH PLOLWDU\ ZKHQ LW ZDV VWLOO
FRQWUROOHG E\ WKH 6DQGLQLVWDV %HLQJ D 6DQGLQLVWD PDGH LW KDUG IRU
KLP WR JHW D MRE GXULQJ WKH V +H IHOW WKH RQO\ ZD\ WR JHW DURXQG
WKLV ZDV WR UHQRXQFH KLV )6/1 DIILOLDWLRQ

)UDQFLVFR %ODQGyQ 5REOHWR ZDV D VWXGHQW LQ WKH ODVW \HDU WKH VFKRRO ZDV
KHOG ² +H ZDV DOVR LQ *HUPDQ\ ZKHQ WKH %HUOLQ :DOO FDPH
GRZQ 8QWLO MXVW EHIRUH , PHW KLP KH ZDV D ODZ\HU LQ 0DWDJDOSD EXW
KDG EHHQ QDPHG MXGJH RI WKH VPDOO YLOODJH RI :DVODOD 5$$1 XQGHU
WKH QHZ 2UWHJD 6DDYHGUD JRYHUQPHQW +H VDZ QR UHDVRQ WR KLGH KLV
H[SHULHQFHV LQ (DVW *HUPDQ\ 'LIIHUHQW IURP WKH RWKHUV KH DOUHDG\
)UDQFLVFR %ODQGyQ 5REOHWR FHQWHU LV SURXG WR KDYH NQRZQ (DVW *HUPDQ\·V
OHDGHU DW WKH WLPH RI WKH IDOO RI WKH %HUOLQ :DOO (JRQ .UHQ] :KHQ , DVN IRU
D SLFWXUH RI KLP KH JDWKHUV KLV IDPLO\ DURXQG

WKHQ ZRUNHG DW D KLJKHU OHYHO LQ WKH SDUW\ DSSDUDWXV $V D OHDGLQJ

ILJXUH LQVLGH WKH -6 LQ WKH HDUO\ V KH KDG GLUHFW FRQWDFW WR (JRQ
.UHQ] WKH OHDGHU RI WKH )UHLH 'HXWVFKH -XJHQG )UHH *HUPDQ <RXWK
)'- WKH (DVW *HUPDQ SDUWQHU RUJDQL]DWLRQ RI WKH -6 XS XQWLO 
2Q  2FWREHU  (JRQ .UHQ] ZDV HOHFWHG DV KHDG RI VWDWH RI (DVW
*HUPDQ\ DQG %ODQGyQ 5REOHWR FODLPHG WR KDYH PHW KLP ZKLOH KH
ZDV LQ WKDW SRVLWLRQ

$PDGD $OYDUDGR 6R]D KDG PRUH RI D SHUVRQDO WUDJHG\ UHODWHG WR KHU YLVLW
WR (DVW *HUPDQ\ , PHW $OYDUDGR 6R]D·V IDPLO\ LQ 0DWDJDOSD OLYLQJ
IXUWKHU RXWVLGH WKH FHQWHU WKDQ %ODQGyQ 5REOHWR $OYDUDGR 6R]D
DQG KHU KXVEDQG KDG ERXJKW WKH ULJKWV IRU D EXV OLQH ZKLFK WKH\
RSHUDWH DQG WKH\ SUHYLRXVO\ ZRUNHG DV WD[L GULYHUV ,Q WKH HDUO\
V $OYDUDGR 6R]D ZDV HPSOR\HG LQ D SROLFH FDSDFLW\ LQ 0DQDJXD
$ FDU DFFLGHQW GXULQJ WKDW WLPH OHG WR KHU EHLQJ WHPSRUDULO\ LQIHUWLOH
7UHDWPHQW ZDV DYDLODEOH EXW RQO\ LQ (DVW *HUPDQ\ 6R LQ DGGLWLRQ
WR WKH SROLWLFDO WUDLQLQJ $OYDUDGR 6R]D ZDV VHQW WR (DVW *HUPDQ\
WR UHFHLYH PHGLFDO WUHDWPHQW 7HVWV ZHUH PDGH HYHU\WKLQJ ZDV


$PDGD $OYDUDGR 6R]D KDG EHHQ LQYLWHG WR FRPH WR (DVW *HUPDQ\ WR EH WR
EH WUHDWHG DJDLQVW LQIHUWLOLW\ LQ  6KH FODLPV WKDW XSRQ WKH IDOO RI WKH
%HUOLQ :DOO DQG WKH WDNLQJ RI SRZHU RI WKH SROLWLFDO ULJKW KHU RSHUDWLRQ ZDV
FDQFHOHG DQG LQVWHDG VKH ZDV VHQW WR SLFN IUXLW 1RZ $OYDUDGR 6R]D DQG KHU
KXVEDQG RSHUDWH D EXV OLQH LQ 0DWDJDOSD

SUHSDUHG DQG WKHQ WKH %HUOLQ :DOO FDPH GRZQ 7KH VFKRRO VWRSSHG
LQ WKH PLGGOH RI WKH \HDU ,W ZDV RIIHUHG WKDW LI DQ\RQH KDG WKH
PRQH\ WKH\ FRXOG FRQWLQXH VWXG\ EXW QR RQH KDG WKH IXQGV DQG
VRPH JURXSV OLNH WKH &XEDQV KDG WR OHDYH LPPHGLDWHO\ 2WKHUV OLNH
$OYDUDGR 6R]D VWD\HG DQG ZHUH VHQW RXW WR KDUYHVW IUXLW LQ WKH
FRXQWU\ VLGH XQWLO WKHLU VFKHGXOHG WULS KRPH 1RW KDUG WR LPDJLQH
DOVR $OYDUDGR 6R]D VHHV (DVW *HUPDQ\ YHU\ SRVLWLYHO\ DQG :HVW
*HUPDQ\ DV ZHOO DV ZHVWHUQVW\OH FDSLWDOLVP GHFLGHGO\ QHJDWLYHO\

9tFWRU 5XL] LV DQRWKHU SHUVRQ , IRXQG LQ (VWHOt +H VWXGLHG D ORW LQFOXG

LQJ +LVWRU\ (FRQRP\ DQG ODZ :KHQ , PHW KLP KH ZRUNHG LQ WKH
,QVWLWXWR 1LFDUDJHQVH GH 6HJXULGDG 6RFLDO ,166 DQG WDXJKW DW D XQL
YHUVLW\ , IRXQG KLP GXULQJ KLV OXQFK EUHDN DW KLV KRXVH 5XL] LV VWLOO
D 6DQGLQLVWD DQG KH VHHV HQRUPRXV DGYDQFHV ZLWK WKH FXUUHQW JRY
HUQPHQW $IWHU KH KDG VHHQ P\ IRU VRPH VHFRQGV KH LPPHGLDWHO\
VWDUWHG OHFWXULQJ PH RQ VRPH RI WKH QHZ JRYHUQPHQW SURJUDPV LQ
KLV VHFWRU


9tFWRU 5XL] QG IURP OHIW  KHUH ZLWK IDPLO\ GRHV QRW WKLQN WZLFH DERXW
SUHVHQWLQJ KLV OLIH DQG IDPLO\ GXULQJ KLV OXQFK EUHDN RQO\ PLQXWHV DIWHU
PHHWLQJ PH

7KH LPSRUWDQFH RI (DVWHUQ (XURSH IRU WKH 6DQGLQLVWD 5HYROXWLRQ LQ

WKH V

0RVW 6DQGLQLVWDV , VSRNH WR LQ WKH VWUHHWV RQ UDQGRP RFFDVLRQV WDONHG

DERXW WKH 6RYLHW 8QLRQ DQG LWV DOOLHV DV DOOLHV RI WKH 6DQGLQLVWD 5HYROXWLRQ
7KH UHODWLRQVKLS EHWZHHQ WKH WZR LV PRVWO\ SRUWUD\HG DV EHLQJ EHWZHHQ
HYHQ SDUWQHUV ,Q WKHLU YLHZ WKH FRRSHUDWLRQ EHWZHHQ 1LFDUDJXDQ 6DQGLQ
LVWDV DQG RWKHU UHYROXWLRQDU\ JURXSV DURXQG WKH ZRUOG ZDV DQG LV RQH RI
UHFLSURFLW\ ZLWKRXW DQ\ RQH JURXS KDYLQJ WKH XSSHU KDQG $PRQJ WKRVH
ZKR ZHQW DQG VWXGLHG LQ (DVW *HUPDQ\ WKH UHODWLRQVKLS LV DW OHDVW SDUWLDOO\
VHHQ DV GLIIHUHQW EHFDXVH RI D UHFRJQLWLRQ WKDW WKH (DVWHUQ (XURSHDQ VWDWHV
ZHUH VWURQJHU WKDQ WKH 1LFDUDJXDQ VWDWH
,QVWHDG RI VHHLQJ WKH VFKRRO DV D SODFH RI LQWHUFKDQJH LQ ZKLFK HYHQ
SDUWQHUV ZRXOG FRPH WRJHWKHU DQG VKDUH UHYROXWLRQDU\ LGHDV WKH ZD\ RQH
FRXOG LPDJLQH IRU LW WR KDSSHQ LI WKH UHODWLRQVKLS KDG EHHQ WRWDOO\ KRUL]RQ
WDO WKH VWXGHQWV UHFRJQL]H WKH IDFW WKDW WKH VFKRRO ZLWK LWV VWXG\ SURJUDPV
ZDV FUHDWHG WR VSUHDG D FHUWDLQ LGHRORJ\ 7KH PRVW HODERUDWH H[SODQDWLRQ
RI VRPHRQH·V YLHZ RQ WKLV , UHFHLYHG IURP 0HQGLHWD :KHQ , ILUVW PHW KLP
, H[SODLQHG WKH FXUUHQW VWDWXV RI WKH VFKRRO WKH\ DOO DWWHQGHG +H PDGH LW
FOHDU WKDW KH WKRXJKW LW ZDV VXSUHPHO\ YDOXDEOH IRU LGHRORJLFDO HGXFDWLRQ
WR FRQWLQXH LQ (DVW *HUPDQ\ 7KH VFKRRO EXLOGLQJV KDG EHHQ VROG DOWR
JHWKHU WKH SDUW\ RQO\ NHSW D IHZ EXLOGLQJV VFDWWHUHG DURXQG (DVW *HUPDQ\
RQH RI ZKLFK ZDV SDUW\ KHDGTXDUWHUV LQ %HUOLQ ´<RX DUH KRZHYHU VWLOO


&RQQHFWLRQV WR D IRUPHU FHQWHU 

HGXFDWLQJ WKH UHFUXLWV ULJKW"µ KH ZDQWHG WR NQRZ , WROG KLP WKDW \HV
WKHUH ZDV D SDUW\ \RXWK RUJDQL]DWLRQ ZLWK D VWXG\ SURJUDP FRQQHFWHG WR
LW EXW WKDW LW GLG QRW XVH WKH VDPH SURJUDP DV EDFN WKHQ +H FRPPHQWHG

2K , VWLOO KDYH WKH ERRNV ,·OO GRQDWH WKHP IRU \RX WR PDNH
FRSLHV LI WKDW PHDQV \RX FDQ XVH WKHP WR VWDUW WKH SURJUDP
EDFN XS

7KH LGHD RI (DVW *HUPDQ\ DQG WKH (DVW *HUPDQ V\VWHP DV D SODFH WR FRS\
DQG DOO\ RQHVHOI ZLWK VHHPHG WR EH JHQXLQH DV KH FRQWLQXHG DORQJ WKH
VDPH OLQH DIWHU , WXUQHG RII WKH FDPHUD DW WKH HQG RI RQH RI RXU PHHWLQJV

,W ILOOHG PH ZLWK VXFK MR\ ZKHQ , VDZ WKDW WKH\ JDYH WKH PHGDO
WR 0UV ƨRQHFNHU WKHUH RQ -XO\ WK IRU DOO WKH KHOS WKH\ JDYH
XV EDFN WKHQ 7KDW ZDV ZHOO GHVHUYHG

7KH VWDWHPHQWV RI 0HQGLHWD DUH TXLWH W\SLFDO IRU WKH H[VWXGHQWV ,Q SDUW
WKHLU FRPPHQWV ZHUH OLNHO\ VKDSHG E\ WKHLU NQRZOHGJH WKDW , ZDV DIILOLDWHG
ZLWK WKH VXFFHVVRU RI WKH SDUW\ WKDW IRUPHUO\ UXOHG (DVW *HUPDQ\ *LYHQ
WKDW LQ PRVW FDVHV LW ZDV WKH\ ZKR FKRVH WR FRQWDFW PH DQG WKDW WKH\ GLG
SUHVHQW QXPHURXV SRLQWV RI FULWLFLVP RI DVSHFWV ERWK RI WKH 1LFDUDJXDQ
JRYHUQPHQW DQG WKH (DVW *HUPDQ V\VWHP , FRQFOXGH WKDW PRVW RI WKHLU
VWDWHPHQWV JHQXLQHO\ UHSUHVHQWHG WKHLU YLHZV
´6HH WKHVH DUH WKLQJV ZH OHDUQHG RYHU WKHUH DW WKH VFKRRO LQ (DVW
*HUPDQ\µ %ODQGyQ 0RQWHQHJUR H[SODLQHG EHIRUH VKH OLVWHG VRPH SRLQWV
RI WKH UHYROXWLRQDU\ WDFWLFV DQG WKHRU\ WKDW WKH 1LFDUDJXDQ JURXS VKH KDG
EHHQ ZLWK EURXJKW IURP *HUPDQ\ $JDLQ WKH SLFWXUH RI (DVW *HUPDQ\ ZDV
D SRVLWLYH RQH LQ D ZD\ ZKLFK ZRXOG OLNHO\ VXUSULVH PRVW *HUPDQV 6KH
WXUQHG RXW WR KDYH EHHQ D IULHQG RI WKH ILUVW (DVW *HUPDQ ZKR VWDUWHG PH
RQ WKH VHDUFK DQG LQ FRQQHFWLRQ ZLWK WKDW VKH SRLQWHG RXW KRZ JUDWHIXO
VKH LV WKDW ´HYHQ WKRXJK >RXU VRFLDOLVW (DVW *HUPDQ FODVV PDWHV@ KDYH ORVW
SRZHU WKH\ DUH VWLOO WU\LQJ WR KHOS XV KHUHµ
$PLQWD $ULDV VDLG WKDW WKH H[SHULHQFH LQ (DVW *HUPDQ\ ZDV XQGHUVWRRG
GLIIHUHQWO\ E\ GLIIHUHQW SHRSOH SDUWLFLSDWLQJ ZLWKRXW VSHFLI\LQJ IXUWKHU
6KH DOVR VDLG ´$OWRJHWKHU LW ZDV WKH FRRSHUDWLRQ IURP WKH (DVWHUQ EORF DQG
(DVW *HUPDQ\ WKDW PDGH WKH ILUVW SKDVH RI WKH UHYROXWLRQ SRVVLEOHµ DQG
WKH FXUUHQW ¶SKDVH RI WKH UHYROXWLRQ· ZRXOG EH YHU\ PXFK IRUPHG E\ WKH
HGXFDWLRQ JLYHQ EDFN WKHQ WR PDQ\ RI WKH OHDGLQJ FDGUHV RI WKH 6DQGLQLVWD
PRYHPHQW :LWK WKDW H[SODQDWLRQ VKH LV WKH RQH ZKR VHHPV WR VXP XS
WKH XQGHUO\LQJ LGHD RI WKH VWDWHPHQWV RI DOO RI WKH IRUPHU VWXGHQWV
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

7KH GHJUHH RI SRVLWLYH YLHZV RI WKH 6RYLHW 8QLRQ DQG VRFLDOLVW (DVWHUQ
(XURSH VHHPV QRW WKDW GLIIHUHQW EHWZHHQ WKH IRUPHU VWXGHQWV DQG WKH
JHQHUDO 6DQGLQLVWD SDUW RI WKH SRSXODWLRQ $ QRWLFHDEOH GLIIHUHQFH OLHV
LQ WKH UHFRJQLWLRQ E\ WKH IRUPHU VWXGHQWV WKDW WKH VRFLDOLVW LGHRORJ\ RI
WKH WLPH ZKLFK WKH 6DQGLQLVWDV VKDUHG ZLWK (DVWHUQ (XURSH GLG QRW IORZ
DV HJDOLWDULDQ RU RULJLQDWH RQO\ LQ 1LFDUDJXD WKH ZD\ LW VHHPV WR PDQ\
6DQGLQLVWDV

&RPSDULVRQ EHWZHHQ 1LFDUDJXD DQG ''5

2QH RI WKH REYLRXV DGYDQWDJHV LQ GHWHUPLQLQJ WKH UHODWLRQ EHWZHHQ 1LFD
UDJXD DQG WKH UHVW RI WKH ZRUOG IRU WKRVH ZKR KDYH EHHQ DEURDG LV WKH
DELOLW\ WR FRPSDUH WKH VWDWH WKH\ ZHQW WR ZLWK 1LFDUDJXD 7KH FRPSDULVRQ
PRVW VWXGHQWV PDGH FRPELQHG LGHRORJLFDO OHDGHUVKLS ZLWK PDWHULDO ZHDOWK
$W RQH RI WKH PHHWLQJV 0HQGLHWD UHDOL]HG WKDW , DQG D 1RUZHJLDQ IULHQG
ZKR YLVLWHG PH KDG QHYHU H[SHULHQFHG (DVW *HUPDQ\ 7KHQ KH H[SODLQHG
ZKDW LW KDG EHHQ OLNH

,Q (DVW *HUPDQ\ HYHU\ERG\ KDG UHDG WKDW ERRN >'DV .DSLWDO@

:KHQ \RX ERDUGHG D EXV WKH EXV GULYHU ZRXOG KDYH UHDG LW
$QG WKH JX\ FKHFNLQJ WKH WLFNHWV $QG WKH SHUVRQ VLWWLQJ QH[W
WR \RX

$ OLWWOH ODWHU KH FRQWLQXHG GHVFULELQJ (DVW *HUPDQ\ EXW WKLV WLPH KLV
GHVFULSWLRQ KDG WXUQHG PRUH WR WKH PDWHULDO UDWKHU WKDQ LGHRORJLFDO VLGHV
RI WKH FRXQWU\

7KH 'HPRFUDWLF *HUPDQ\ ZDV D FRXQWU\ ZKHUH WKH SHRSOH

KDG MXVW DERXW HYHU\WKLQJ 7KHUH ZDV QRW RQH ZLVK WKH SHRSOH
KDG WKDW WKH JRYHUQPHQW GLG QRW IXOILOO «(DVW *HUPDQV KDG
DOPRVW PRUH WKDQ WKH :HVW *HUPDQV

5XL] UHFRJQL]HG WKDW WKH VWDQGDUG RI OLYLQJ LQ (DVW *HUPDQ\ DIWHU  ZDV
KLJKHU WKDQ WKDW RI 1LFDUDJXD ,Q FRPPRQ ZLWK PRVW 6DQGLQLVWDV ERWK RI
WKH 056 DQG WKH )6/1 WKHVH IRUPHU VWXGHQWV VXFK DV 0HQGLHWD H[SUHVVHG
DQ RYHUDOO SRVLWLYH YLHZ RI (DVWHUQ (XURSHDQ VRFLDOLVP +RZHYHU GLIIHUHQW
IURP RWKHUV ZKR KDYH QRW VHHQ DQ\ RI WKHVH FRXQWULHV WKHUH VHHPV WR EH
PRUH RI DQ DGPLUDWLRQ RI WKHVH FRXQWULHV DQG D UHFRJQLWLRQ WKDW WKH\ KDG
UHDFKHG DQRWKHU OHYHO RI GHYHORSPHQW WKDQ 1LFDUDJXD ERWK LGHRORJLFDOO\
DQG PDWHULDOO\
&RQQHFWLRQV WR D IRUPHU FHQWHU 

7KH GLIIHUHQFH EHWZHHQ 1LFDUDJXD DQG WKH ''5 ZDV DOVR H[SODLQHG
E\ VRPH RI WKH IRUPHU VWXGHQWV LQ FRQFUHWH PDWHULDO WHUPV UHODWHG WR
WKHPVHOYHV &DPSRV 0RQWHQHJUR VSHQW FRQVLGHUDEOH WLPH H[SODLQLQJ WKDW
DIWHU VHYHUDO \HDUV RI XQHPSOR\PHQW GXULQJ WKH \HDUV RI QHROLEHUDOLVP VKH
REWDLQHG HPSOR\PHQW DV D WHDFKHU DW D &KULVWLDQ VFKRRO IRU ZKLFK VKH KDG
WR EHFRPH D &KULVWLDQ ZLWK D VDODU\ RI  86' SHU PRQWK 6KH SRLQWHG RXW
KRZ KDUG LW ZDV WR REWDLQ WKLV HPSOR\PHQW 7KHQ VKH FRPSDUHG KHU ZDJH
WR WKH  86' SHU PRQWK VWLSHQG VKH ZDV JLYHQ E\ WKH ''5 JRYHUQPHQW
ZKLOH VWXG\LQJ WKHUH
:KLOH PRVW 1LFDUDJXDQV VHHPHG TXLWH DZDUH RI WKH GLIIHUHQFHV LQ
ZDJHV EHWZHHQ :HVWHUQ (XURSHWKH 8QLWHG 6WDWHV DQG 1LFDUDJXD , FDQQRW
UHFDOO WKH WKHPH RI ZDJHV FRPLQJ XS LQ FRQQHFWLRQ ZLWK GLVFXVVLQJ (DVWHUQ
(XURSH LQ WKH V LQ WKH VDPH ZDU DV ZLWK &DPSRV 0RQWHQHJUR 7KHUH
VHHPV WR EH VRPH UHFRJQLWLRQ WKDW (DVWHUQ (XURSH KDG WKH DELOLW\ WR VHQG
PDWHULDO SURGXFWV DQG HFRQRPLF KHOS WR 1LFDUDJXD LQ D ZD\ 1LFDUDJXD
ZDV QRW DEOH WR GR )URP WKLV LW FDQ EH GHULYHG WKDW D FHUWDLQ UHDOL]DWLRQ
RI WKH GLIIHUHQFHV EHWZHHQ WKH HFRQRPLFV LV SUHVHQW DOVR DPRQJ WKRVH
6DQGLQLVWDV ZKR GLG QRW OHDYH 1LFDUDJXD 7KH GLIIHUHQFH VHHPV WR EH
PRVWO\ LQ WKH YLHZV RI WKH UHODWLRQVKLS EHWZHHQ WKH WZR LQ LGHRORJLFDO
WHUPV

([SHULHQFHV ZLWK WKH IDOO RI WKH ZDOO DQG YLHZV RQ FKDQJHV RI (DVWHUQ
(XURSH

7KH IDOO RI WKH %HUOLQ ZDOO DQG WKH FKDQJH DZD\ IURP VRFLDOLVP LQ (DVWHUQ
(XURSH DUH WRGD\ VHHQ DV SRVLWLYH HYHQWV LQ WKH KLVWRU\ RI WKDW UHJLRQ RI WKH
ZRUOG E\ PRVW ZHVWHUQHUV QR PDWWHU ZKDW LGHRORJ\ WKH\ PD\ IROORZ *LYHQ
WKH SRVLWLYH YLHZ 6DQGLQLVWDV VHHP WR KDYH RI (DVWHUQ (XURSHDQ VRFLDOLVP
, WKRXJKW LW LQWULJXLQJ WR DVN WKRVH RI WKH IRUPHU VWXGHQWV ZKR KDG VRPH
H[SHULHQFHV ZLWK HLWKHU WKH IDOO RI WKH %HUOLQ ZDOO RU ZKR KDG H[SHULHQFHV
ZLWK (DVW *HUPDQ\ DIWHUZDUG DERXW WKHLU YLHZ RI WKH GLVDSSHDUDQFH RI (DVW
*HUPDQ\ 7KH 6DQGLQLVWDV JHQHUDOO\ VHH WKH GHVWUXFWLRQ RI (DVW *HUPDQ\
DV D ORVV IRU WKH *HUPDQ SHRSOH )URP WKRVH ZKR KDG H[SHULHQFHG WKH
WLPH RI WKH V\VWHP FKDQJH LQ WKH ''5 , KDG H[SHFWHG WR KHDU D VRPHZKDW
GLIIHUHQW YLHZ EXW WKLV ZDV QRW WKH FDVH )RU H[DPSOH &DPSRV 0RQWHQHJUR
ZDV VWLOO HPSOR\HG E\ WKH FLW\ XQGHU WKH ILUVW PD\RU DIWHU  $V SDUW RI
WKDW MRE VKH ZDV DEOH WR JR WR 6SDLQ DQG IURP WKHUH RQ WR *HUPDQ\ RQFH
PRUH LQ  6KH VXPPHG XS KHU H[SHULHQFHV DW WKDW WLPH LQ MXVW RQH
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

VHQWHQFH ´,W ZDV D YHU\ VDG VLJKW ² DOO WKDW SRYHUW\ DQG WUDVK WKDW ZDV
IO\LQJ DURXQGµ
:KLOH , KDYH KHDUG PDQ\ SHRSOH LQ (DVW *HUPDQ\³DQG VRPH LQ :HVW
*HUPDQ\³VSHDN QHJDWLYHO\ DERXW WKH FKDQJHRYHU WR FDSLWDOLVP LQ (DVW
*HUPDQ\ , FDQQRW UHFDOO KDYLQJ KHDUG DQ\ DVVHVVPHQW RI WKH VLWXDWLRQ LQ
WKH HDUO\ V TXLWH DV QHJDWLYH E\ DQ\ *HUPDQ DV KRZ &DPSRV 0RQWHQH
JUR VHHV LW 7KH YLHZ &DPSRV 0RQWHQHJUR·V H[SUHVVHG RI (DVW *HUPDQ\ LQ
 SDLQWV D SLFWXUH RI SRVWXQLILFDWLRQ *HUPDQ\ VLPLODU WR KRZ RWKHU
1LFDUDJXDQV ZKR YLVLWHG *HUPDQ\ GXULQJ WKH VDPH SHULRG SUHVHQWHG LW
WR PH ,W VHHPV IRU WKHP SURJUHVV LQ (XURSH LV GLUHFWO\ FRQQHFWHG WR WKH
''5 DQG ZHVWHUQVW\OH FDSLWDOLVP LV HTXDO ZLWK D EUHDNGRZQ RI VRFLHW\
7ZR RI WKH IRUPHU VWXGHQWV $OYDUDGR 6R]D DQG %ODQGyQ 5REOHWR H[SH
ULHQFHG WKH IDOO RI WKH %HUOLQ :DOO GLUHFWO\ GXULQJ WKHLU WLPH DV VWXGHQWV
7KH HYHQWV VXUURXQGLQJ WKDW SHULRG DUH JHQHUDOO\ GHVFULEHG DV D SHULRG
RI SDUW\LQJ DQG KDSSLQHVV RYHU WKH FKDQJHRYHU DPRQJ *HUPDQV 7KH 6DQ
GLQLVWD YLHZ RI WKDW SHULRG VHHPV WR EH LQ OLQH ZLWK WKHLU RYHUDOO YLHZ RI
(DVW *HUPDQ\ 7KLV PD\ SDUWLDOO\ EH H[SODLQHG E\ WKH VRPHZKDW OLPLWHG
XQGHUVWDQGLQJ WKH VWXGHQWV KDG RI WKH *HUPDQ ODQJXDJH DQG VLWXDWLRQ
DQG WKDW WKH\ UHFHLYHG D ORW RI LQIRUPDWLRQ WKURXJK WKH HGXFDWRUV DW WKH
VFKRRO $OYDUDGR 6R]D UHFDOOHG WKH LQLWLDO UHDFWLRQ E\ WKH VFKRRO VWDII WR
WKH RSHQLQJ RI WKH *HUPDQ*HUPDQ ERUGHU WKLV ZD\

>7@KH ILUVW WKLQJ WKH WHDFKHUV WROG XV ZDV WKDW ZH VKRXOG VWD\
LQ WKH VFKRRO WR SUHYHQW EHLQJ DWWDFNHG IURP QHRQD]LV ,W
ZDV KRUULEOH )LUVW ZH ORVW KHUH >DW QDWLRQDO HOHFWLRQV RQ 
)HEUXDU\ @ DQG WKHQ WKH\ DOVR ORVW LQ (DVW *HUPDQ\ >DW
QDWLRQDO HOHFWLRQV  0DUFK @

, DP QRW LQ WKH SRVLWLRQ WR VD\ ZKHWKHU WKH SRVVLELOLW\ RI DWWDFNV IURP

QHRQD]LV ZDV UHDO RU ZDV DQ H[FXVH E\ VFKRRO VWDII WR NHHS WKH VWXGHQWV
LQGRRUV +DG $OYDUDGR 6R]D KDG WKH VDPH DFFHVV WR WKH QHZV DQG LQIRUPD
WLRQ WKH JHQHUDO *HUPDQ SRSXODWLRQ KDG KHU YLHZ RI WKH VLWXDWLRQ PLJKW
KDYH EHHQ VRPHZKDW GLIIHUHQW
$ IHZ PRQWKV DIWHU WKH IDOO RI WKH %HUOLQ ZDOO DQG EHIRUH WKH VFKRRO
\HDU ZDV RYHU WKH HGXFDWLRQDO SURJUDP DW WKH VFKRRO ZDV VXVSHQGHG 7KH
VRFLDOLVW (DVW *HUPDQ DXWKRULWLHV KDG VFKHGXOHG IRU $OYDUDGR 6R]D WR EH
RSHUDWHG RQ XVLQJ WKH VXSHULRU (DVW *HUPDQ PHGLFDO HTXLSPHQW 8QGHU
WKH QHZ QRQVRFLDOLVW OHDGHUVKLS KHU RSHUDWLRQ ZDV FDQFHOHG ,QVWHDG
VKH DQG VRPH RI WKH RWKHU VWXGHQWV ZHUH VHQW WR SLFN IUXLW GXULQJ WKH ILUVW
&RQQHFWLRQV WR D IRUPHU FHQWHU 

KDOI RI  XQWLO WKHLU IOLJKW EDFN WR 1LFDUDJXD LQ WKH VXPPHU RI WKDW
\HDU $OYDUDGR 6R]D UHIHUUHG WR WKH SHULRG DV ´ZKHQ ZH KDG ORVWµ LQ D ZD\
WKDW VRXQGHG DV LI LW ZDV D SHUVRQDO ORVV 0DQ\ RWKHU 1LFDUDJXDQV ZKR
WKHPVHOYHV ORVW PXFK OHVV PDWHULDOO\ WKDQ $OYDUDGR 6R]D DOVR UHIHU WR WKH
SHULRG LQ WKH VDPH PDQQHU ,W VHHPV WR EH DQ LGHQWLILFDWLRQ QRW RQO\ ZLWK
WKH )6/1 EXW DOVR ZLWK WKH VRFLDOLVW JRYHUQPHQW RI (DVW *HUPDQ\ DQG WKH
HQWLUH 6RYLHW EORF
%ODQGyQ 5REOHWR VHHPV QRW WR KDYH EHHQ TXLWH DV UHVWULFWHG LQ KLV
PRYHPHQWV GXULQJ WKRVH GD\V $FFRUGLQJ WR KLP DIWHU WKH ZDOO FDPH
GRZQ WKHUH ZDV QRWKLQJ SK\VLFDOO\ VWRSSLQJ WKH VWXGHQWV IURP JRLQJ WR
:HVW *HUPDQ\ DQG HYHQ WR QHLJKERULQJ FRXQWULHV DV VRPH RI WKH VWXGHQWV
GLG %ODQGyQ 5REOHWR WROG PH KRZ KH RQO\ ZHQW WR :HVW %HUOLQ DQG KRZ KH
GLG VR RQO\ IRU D VKRUW WULS :KHQ WKH 1LFDUDJXDQ VWXGHQWV ZHUH VFKHGXOHG
WR JR EDFN WR 1LFDUDJXD 5REOHWR %ODQGyQ OHIW HYHQ WKRXJK KH EHOLHYHG
KH FRXOG KDYH VWD\HG GXH WR WKH JHQHUDO OHYHO RI FKDRV ´'LG \RX QRW HYHQ
FRQVLGHU VWD\LQJ"µ , DVNHG KLP ´:HOO QR , KDG WKLQJV DQG IDPLO\ KHUH LQ
1LFDUDJXDµ KH DQVZHUHG PH DV LI LW ZRXOG KDYH EHHQ WKH VWUDQJHVW WKLQJ
LQ WKH ZRUOG WR VXJJHVW 7KH HPSKDVLV LQ KLV H[SODQDWLRQ RI KLV DFWLYLWLHV
LQ ² OLHV LQ WKH RSSRUWXQLW\ WR EH DEOH WR PHHW SHRSOH ZLWK KLJK
UDQNV ZLWKLQ WKH (DVW *HUPDQ UXOLQJ SDUW\ UDWKHU WKDQ LQ WKH SRVVLELOLWLHV
FRQQHFWHG ZLWK H[SHULHQFLQJ :HVW*HUPDQ FDSLWDOLVP
$QRWKHU 6DQGLQLVWD ZKR DOVR VWXGLHG LQ (DVWHUQ (XURSH EXW DW D GLIIHU
HQW VFKRRO GHFLGHG WR WDNH XS WKH TXHVWLRQ RI WKH %HUOLQ :DOO DIWHU , DVN
ZKDW KLV H[SHULHQFH LQ (DVW *HUPDQ\ ZDV OLNH

6HH ZH DV WKH )UHQWH 6DQGLQLVWD DUH H[WUHPHO\ JODG WKDW WKH

%HUOLQ ZDOO KDV FRPH GRZQ EHFDXVH WKDW PHDQV WKDW DOO WKH
HGXFDWHG 0DU[LVWV IURP WKH (DVW FDQ VWUHDP RYHU LQWR WKH
UHVW RI *HUPDQ\ DQG HGXFDWH WKH ZRUNLQJ FODVV WKHUH 6R ZH
WUXO\ KRSH WKDW ZH ZLOO ZLQ DJDLQ LQ *HUPDQ\ DV ZHOO DQG
WKDW WKH HQWLUH *HUPDQ\ WKHQ ZLOO MRLQ WKH VRFLDOLVW FDPS

:KHQHYHU , KHDUG D 6DQGLQLVWD WDON DERXW WKH HYHQWV VXUURXQGLQJ WKH IDOO
RI WKH %HUOLQ ZDOO LW ZDV DOZD\V IXQGDPHQWDOO\ GLIIHUHQW IURP KRZ , KDYH
NQRZQ LW LQ WKH *HUPDQ GLVFRXUVH ,QVWHDG RI EHLQJ D SRVLWLYH HYHQW LQ
ZKLFK D PRUH GHPRFUDWLF DQG OLEHUDWLQJ V\VWHP ZLQV RYHU D PRUH GLFWD
WRULDO UHJLPH LQ WKH 1LFDUDJXDQ 6DQGLQLVWD SHUVSHFWLYH LW LV WKH ''5 WKDW
DOZD\V ZDV WKH EHWWHU V\VWHP 0XFK OLNH $OYDUDGR 6R]D PDQ\ 6DQGLQLVWDV
ZKR KDYH QHYHU EHHQ LQ WKH ''5 DUH UHDGLO\ ZLOOLQJ WR LGHQWLI\ ZLWK LWV
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

JRYHUQPHQW RI WKH V HYHQ WKRXJK WKH\ PD\ QRW VKRZ WKH VDPH OHYHO
RI LQWHUHVW LQ D FRXQWU\ WKH\ KDYH QHYHU VHHQ

([SHULHQFHV DIWHU UHWXUQLQJ DQG WKH  \HDUV RI QHROLEHUDOLVP

7KH IRUPHU VWXGHQWV WROG PH RI YDULRXV SDUWV RI WKHLU OLIH VWRU\ DIWHU WKHLU
UHWXUQ 6LPLODU WR PDQ\ RWKHU 6DQGLQLVWDV DQG 1LFDUDJXDQV LQ JHQHUDO
WKH\ GLG QRW VWLFN WR H[SODLQLQJ WKHLU SHUVRQDO KLVWRU\ EXW JDYH D JHQHUDO
RYHUYLHZ RI WKH KLVWRU\ RI WKH FRXQWU\ VHH DOVR ³ 3UREOHPV XQGHUVWDQGLQJ
WKH GLVFXVVLRQ RI 1LFDUDJXDQ KLVWRU\ S   2QH SDUWLFXODU SHULRG PRVW
6DQGLQLVWDV VHHP WR OHDYH RXW RI WKHLU SHUVRQDO OLIH VWRU\ LV WKH SHULRG
VXUURXQGLQJ WKH  HOHFWLRQV ZKLFK DUH RIWHQ GHVFULEHG DV ´WKHQ ZH ORVW
WKH HOHFWLRQVµ RU VRPHWKLQJ WR D VLPLODU HIIHFW 7KH SHULRGV OHIW RXW GLIIHU
IURP SHUVRQ WR SHUVRQ ,Q WKH IHZ FDVHV , KHDUG DERXW ZKDW KDSSHQHG
GXULQJ WKDW SHULRG LW ZDV PRVWO\ D SHULRG RI XQHPSOR\PHQW DQG SHUVRQDO
GHSUHVVLRQ
6HYHUDO RI WKH VWXGHQWV ZKR VWXGLHG LQ WKH ''5 LQ WKH HDUO\ V
VSHQW WKH ODWHU V LQ HLWKHU -6 RU LQ DQRWKHU SDUW RI WKH VWDWH 0RVW RI
WKHP VHHP WR KDYH EHHQ WKURXJK WKH SK\VLFDOO\ KDUGHVW WLPH EHIRUH WKH\
ZHQW WR (DVW *HUPDQ\ 2QH H[FHSWLRQ LV D VWXGHQW ZKR MRLQHG WKH PLOLWDU\
VHUYLFH XSRQ UHWXUQ DQG ZDV VWLOO WRR VKHOOVKRFNHG WR EH LQWHUYLHZHG LQ
 DQG %ODQGyQ 0RQWHQHJUR ZKR ZHQW DQG OHG WKH -6 LQ WKH YLOODJH RI
5LR %ODQFR DQG ORVW KHU ULJKW LQGH[ ILQJHU LQ WKH FRQIURQWDWLRQV ZLWK WKH
&RQWUDV WKHUH
7KH VWD\ LQ WKH ''5 ZDV DFFRUGLQJ WR KRZ WKH IRUPHU VWXGHQWV GH
VFULEHG LW LQIOXHQWLDO IRU WKHLU FDUHHUV VSHFLILFDOO\ GXULQJ WKH  \HDUV RI
QHROLEHUDOLVP $FFRUGLQJ WR %ODQGyQ 0RQWHQHJUR LW ZDV WKH VWXG\ SUR
JUDP LQ (DVW *HUPDQ\ ZKLFK LQVSLUHG KHU WR VWXG\ ODZ LQ 1LFDUDJXD GXULQJ
VRPH RI WKH HDUOLHU \HDUV RI QHROLEHUDOLVP 6KH WKHQ XVHG KHU HGXFDWLRQ
GXULQJ WKH ODVW \HDUV LQ RSSRVLWLRQ GHIHQGLQJ ODQGOHVV IDUPHUV LQ FDVHV
FRQFHUQLQJ ODQG RFFXSDWLRQV 0DQ\ RI WKH RWKHUV KDG VLPLODU FDUHHU SDWKV
EXW DGPLWWHGO\ WKLV ZDV DOVR FRPPRQ IRU 6DQGLQLVWDV ZKR GLG QRW JR WR
(DVW *HUPDQ\
$PRQJ WKHVH IRUPHU VWXGHQWV WKH \HDUV RI QHROLEHUDOLVP ZHUH ZKHQ
PRVW OHIW WKH )6/1 7KH RQH VWXGHQW , LQWHUYLHZHG DERXW WKLV ZDV 6HOYD
*RQ]DOHV +H H[SODLQHG WKDW IRU WKH ILUVW IHZ \HDUV DIWHU  6HOYD *RQ
]DOHV ZDV NQRZQ QRW IRU KLV FULWLFLVP EXW IRU KLV VWDXQFK VXSSRUW RI WKH
)6/1 ,W ZDV ILUVW ZKHQ KH FRXOG QRW ILQG ZRUN IRU EHLQJ NQRZQ DV DQ )6/1
5RJHOLR $QWRQLR 6HOYD *RQ]DOHV EHOLHYHV WKDW KLV 6DQGLQLVWD SROLWLFDO FRQ
YLFWLRQ IRUFHV KLP WR VWDQG LQ RSSRVLWLRQ WR 3UHVLGHQW -RVp 'DQLHO 2UWHJD
6DDYHGUD

6DQGLQLVWD WKDW KH GHFLGHG WR FKDQJH VLGHV 2I DOO WKH VWXGHQWV , VSRNH

ZLWK 6HOYD *RQ]DOHV LV WKH RQO\ RQH ZLWK GLUHFW FULWLFLVP RI WKH SURFHVVHV
RI WKH V +H LV WRGD\ QRW SDUW RI DQ\ SROLWLFDO SRZHU H[HUWLQJ SUR
FHVVHV , KHDUG RI DW OHDVW RQH RWKHU FDVH RI D IRUPHU VWXGHQW ZKR VZLWFKHG
VLGHV GXULQJ WKLV SHULRG DV VKH ZDV WKH FRVWXGHQW RI RQH RI WKH LQWHUYLHZ
SDUWQHUV $OWKRXJK , NQHZ ERWK KHU QDPH DQG KHU ZKHUHDERXWV , ZDV
QHYHU DEOH WR VFKHGXOH DQ LQWHUYLHZ 7KHUH PD\ EH VHYHUDO RWKHU FDVHV RI
IRUPHU VWXGHQWV ZKR KHDUG DERXW P\ LQWHUYLHZ SURMHFW ZKR IRU VLPLODU
UHDVRQV FKRVH QRW WR DQVZHU 7KH VWD\ LQ (DVW *HUPDQ\ VHHPV QRW WR KDYH
SUHYHQWHG DQ\RQH IURP VZLWFKLQJ SROLWLFDO VLGHV DIWHU WKHLU UHWXUQ
$PRQJ WKRVH IRUPHU VWXGHQWV VWLOO ZLWK WKH )6/1 ZKHQ , VDZ WKHP
LQ  DQG ZKR H[SODLQHG KRZ WKH VWD\ LQ WKH ''5 VLJQLILFDQWO\ LP
SURYHG WKHLU FDUHHU RU DELOLW\ WR KHOS WKH VWRULHV DV WROG PD\ KDYH EHHQ
WROG GLIIHUHQWO\ KDG , FRPH LQ  , ILUVW XQGHUVWRRG WKLV ZKHQ LQWHU
YLHZLQJ 5XL] :KHQ 6HOYD *RQ]DOH] ZDONHG PH WR WKH KRXVH RI 5XL] , FDPH
XQDQQRXQFHG DQG 5XL] VWDUWHG KLV VHOISUHVHQWDWLRQ E\ OLVWLQJ DQ LPSUHV
VLYH QXPEHU RI WKLQJV KH KDG DFKLHYHG ERWK ZLWKLQ WKH VWDWH DSSDUDWXV
DQG DFDGHPLD $IWHU D ZKLOH KH ILQLVKHG WKH LQWHUYLHZ DQG OHIW IRU ZRUN
7KHQ KLV 1LFDUDJXDQ ZLIH H[SODLQHG WR PH WKDW KHU KXVEDQG IDWKHUHG D
FKLOG ZLWK D *HUPDQ FRVWXGHQW ZKLOH LQ (DVW *HUPDQ\ $ IHZ \HDUV DJR
EHIRUH WKH 6DQGLQLVWD WDNHRYHU KH ZDV DVNHG WR WUDYHO WR *HUPDQ\ DQG
JHW WR NQRZ KHU E\ D *HUPDQ 79 VKRZ ´%HFDXVH KH KDG QR MRE KH IHOW
DVKDPHG RI QRW EHLQJ DEOH WR JLYH KHU DQ\WKLQJµ KLV ZLIH VDLG WR PH ,Q


 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

WKH HQG KH GLG QRW JR +DG WKH VDPH KDSSHQHG DW WKH WLPH , FDPH E\ KLV
ZLIH ZDV VXUH WKDW KH ZRXOG KDYH PDGH WKH WULS
7KH H[WHQVLYH ILOWHULQJ RI SHUVRQDO OLIH VWRULHV E\ WKRVH WHOOLQJ WKHP
DQG WKH IDFW WKDW , KDUGO\ PDQDJHG WR ILQG DQ\ IRUPHU VWXGHQWV ZKR
FKDQJHG SDUW\DOOHJLDQFH PHDQV WKDW , GR QRW IHHO , FDQ VXPPDUL]H PXFK
RI KRZ WKH H[SHULHQFH VKDSHG WKH DYHUDJH IRUPHU ''5 VWXGHQW DQG ZKDW
WKH\ GLG LQ WKH IROORZLQJ \HDUV 7KRVH ZKR VWD\HG EHLQJ 6DQGLQLVWDV GLG
DQG GR KDYH D QRWLFHDEOH LPSDFW $V PHQWLRQHG DPRQJ WKH WRWDO RI XQGHU
 VWXGHQWV ZKR ZHQW WR WKLV VFKRRO LQ WKH ''5 VHYHUDO RI WKHP REWDLQHG
KLJK SRVLWLRQV ZLWKLQ WKH QHZ 6DQGLQLVWD VWDWH DQG IRU D UHODWLYHO\ KLJK
SHUFHQWDJH RI WKHP DV %ODQGyQ 0RQWHQHJUR SRLQWHG RXW WKH VWXG\ LQ
*HUPDQ\ LQVSLUHG WKHP WR FRQWLQXH ZLWK IXUWKHU VWXGLHV DQG JHW PRUH
LQYROYHG LQ 6DQGLQLVWD SROLWLFV XSRQ WKHLU UHWXUQ

9LHZV RQ WKH FXUUHQW JRYHUQPHQW

$PLQWD $ULDV IRFXVHG D ORW RQ WKH LPSRUWDQFH WKH FRQQHFWLRQ WR WKH ''5
DQG WKH UHVW RI (DVWHUQ (XURSH KDG LQ GHILQLQJ GHYHORSPHQW JRDOV IRU WKH
6DQGLQLVWDV WKDW WKH FXUUHQW JRYHUQPHQW VWLOO VHHV DV YDOLG +HU SHUVRQDO
H[SHULHQFH LQ WKH ''5 VHHPV WR EH FRQIODWHG ZLWK WKDW RI WKH JHQHUDO
LQIOXHQFH WKH (DVWHUQ EORF KDG RQ WKH )6/1 ,Q FRQQHFWLRQ ZLWK WKDW $PLQWD
$ULDV PHQWLRQV WKDW VKH WKLQNV LW LV YLWDO WR ´UHFRYHU RXU RZQ LGHQWLW\
DV SDUW RI D KLVWRULF VWUXJJOHµ 6RPH RI WKH PRVW FUXFLDO GHYHORSPHQW
IDFWRUV IRU KHU DUH KLJK OLWHUDF\ UDWHV DQG DFFHVV WR FUHGLW IRU SHRSOH WR
SURGXFH 6KH WKLQNV WKDW WKH OLWHUDF\ UDWH LV DQ LQGLFDWRU RI WKH OHYHO RI
GHYHORSPHQW DQG WKDW WKH OHYHO FDQ EH XVHG WR PHDVXUH KRZ YDOXDEOH
FHUWDLQ GHYHORSPHQW VWUDWHJLHV DUH

:KHQ ZH OHIW RIILFH ZH KDG DURXQG  RI LOOLWHUDF\ :KHQ

ZH UHWXUQHG LW ZDV DW  ² DOPRVW  )RU XV WKDW LQ LWVHOI
LV DQ LQGLFDWRU RI GHYHORSPHQW ² DW OHDVW SHRSOH DUH DEOH WR
UHDG DQG ZULWH

'LIIHUHQW IURP WKH ILUVW 6DQGLQLVWD JRYHUQPHQW $PLQWD $ULDV EHOLHYHV FHU
WDLQ KLQGUDQFHV GXULQJ WKH ILUVW 6DQGLQLVWD JRYHUQPHQW PDGH LW LPSRVVLEOH
WR DFKLHYH WKHVH JRDOV

 :KLOH , FDQQRW FRQILUP WKH ILJXUHV VKH FLWHV WKH GLUHFWLRQ VHHPV WR EH VLPLODU WR
ZKDW LQWHUQDWLRQDO RUJDQL]DWLRQV LQGLFDWH 1LFDUDJXD 1HWZRUN D 
&RQQHFWLRQV WR D IRUPHU FHQWHU 

7KH ILUVW SDUW RI WKH UHYROXWLRQ KDSSHQHG GXULQJ D ZDU ,Q

WLPHV RI ZDU QR JRYHUQPHQW FDQ ZRUN LW·V LPSRVVLEOH WR
ZRUN RQ SODQQLQJ GHYHORSPHQW

7KDW LV GLIIHUHQW QRZ DQG VKH VHHV SRVVLELOLWLHV 2QH RI WKH PDLQ PLVFRQ
FHSWLRQV VKH OLVWHG DERXW GHYHORSPHQW GXULQJ WKH ¶ \HDUV RI QHROLEHUDO
LVP· DQG WKH WLPHV ´ZKLFK ZH DUH VWLOO OLYLQJµ ZDV WKDW GHYHORSPHQW PHDQV
UHDFKLQJ ZHVWHUQ VRFLHW\

:H DUH D SRRU FRXQWU\« :H QHHG D PXFK VLPSOHU PRGHO >«@

,W KDV WR EH ORFDO DQG ZLWK D ORW RI HPSKDVLV RQ WKH SURGXFWLYH
VHFWRU

)RU $PLQWD $ULDV UHOHYDQW LQGLFDWRUV IRU GHYHORSPHQW DUH HGXFDWLRQ DQG
DFFHVV WR KHDOWK FDUH UDWKHU WKDQ ZKDW W\SH RI FDUV RU PRELOH SKRQHV
SHRSOH FDUU\ (DVWHUQ (XURSH GXULQJ WKH V VHHPV WR EH FORVHU WR ZKHUH
1LFDUDJXD XOWLPDWHO\ LV WR GHYHORS UDWKHU WKDQ FXUUHQW ZHVWHUQ VRFLHW\
DFFRUGLQJ WR ZKDW $PLQWD $ULDV WROG PH
7KH SRVLWLYH YLHZ RQ WKH FXUUHQW JRYHUQPHQW DOVR H[WHQGHG WR VRPH
RI WKRVH ZKR KDYH QRW IRXQG D MRE ZLWK WKH QHZ 6DQGLQLVWD JRYHUQPHQW
VXFK DV &DPSRV 0RQWHQHJUR 7KH ILUVW WKLQJ VKH IRFXVHG RQ ZKHQ , LQWHU
YLHZHG KHU ZDV WKDW VKH VWLOO LV D 6DQGLQLVWD 6KH IHOW D ELW VDG IRU QRW EHLQJ
HPSOR\HG LQ WKH SXEOLF VHFWRU EXW VKH VDLG VKH EHOLHYHV LQ WKH FXUUHQW 2U
WHJD 6DDYHGUD JRYHUQPHQW DQG WKDW WKHUH QRZ ZRXOG EH PDVVLYH FKDQJHV
DQG HPSOR\PHQW RSSRUWXQLWLHV HYHQ LI WKHVH PD\ QRW EH DYDLODEOH WR KHU
6KH PHQWLRQHG YDULRXV H[DPSOHV RI SHRSOH IURP HLWKHU SDUW\ EDFNJURXQG
ZKR KDG IRXQG HPSOR\PHQW VLQFH 2UWHJD 6DDYHGUD FDPH WR SRZHU DJDLQ
´,W·V VLPSO\ D ORW PRUH RSHQ QRZµ $FFRUGLQJ WR KHU LQ WKH SUHYLRXV \HDUV
LW ZDV KDUG WR LPSRVVLEOH WR ILQG HPSOR\PHQW IRU SHRSOH NQRZQ WR KDYH
6DQGLQLVWD WHQGHQFLHV 1RZ VKH H[SODLQHG WKDW VKH EHOLHYHG LW ZRXOG EH
D ORW HDVLHU IRU KHU GDXJKWHUV WR JDLQ HQWUDQFH WR XQLYHUVLW\ WKDQ LW KDG
EHHQ LQ WKH SDVW &DPSRV 0RQWHQHJUR VHHPV WR EH RQH RI WKRVH ZRUVW RII
RI WKH H[VWXGHQWV LQ HFRQRPLF WHUPV <HW XS XQWLO  VKH FRQWLQXHG WR
EH DFWLYH LQ WKH HOHFWLRQ FDPSDLJQ RI WKH )6/1 LQ 0DOSDLVLOOR
%ODQGyQ 0RQWHQHJUR·V FDUHHU SDWK ZDV GHFLGHGO\ GLIIHUHQW IURP WKDW
RI &DPSRV 0RQWHQHJUR %ODQGyQ 0RQWHQHJUR·V ZRUN IRU WKH JRYHUQPHQW
LQ 0DQDJXD ZLWK UHVSRQVLELOLWLHV HTXDO WR D PLQLVWHU PXVW KDYH WDNHQ
XS PRVW RI KHU WLPH $GGLWLRQDOO\ WKHUH ZDV KHU VSDUH WLPH DFWLYLW\ GXU
LQJ ZHHNHQGV ZKHQ VKH ZRUNHG JLYLQJ OHJDO DGYLFH WR ODQGOHVV IDUPHUV
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

LQ 0DWDJDOSD 7KLV VHHPHG WR EH PRUH UHOHYDQW WR KHU DQG LQ OLQH ZLWK

KHU H[SODQDWLRQ WKDW KHU ZRUN LQ 0DQDJXD LV QRW WHUULEO\ DWWUDFWLYH IRU
VRPHRQH ZKR LV XVHG WR EH D SROLWLFDO DFWLYLVW ,W LV HVVHQWLDO WR QRWH WKDW
VKH GLG QRW FULWLFL]H WKH ZRUN RI WKH 2UWHJD 6DDYHGUD JRYHUQPHQW LW ZDV
RQO\ KHUVHOI ZKR VKH VHHPHG WR VD\ ZDV ZURQJO\ SODFHG LQ WKDW NLQG RI MRE
%ODQGyQ 0RQWHQHJUR FODLPHG WKDW KHU JRDOV DV DQ DFWLYLVW ZHUH VWURQJO\
IRUPHG E\ KHU VWD\ LQ WKH ''5 DQG WKDW WKH\ FRQWLQXHG WR EH WKH UHDVRQ
ZK\ VKH FKRVH WR ZRUN DV DQ DFWLYLVW
1RW DOO WKH IRUPHU VWXGHQWV KDYH D SRVLWLYH YLHZ RI WKH FXUUHQW JRYHUQ
PHQW $V PHQWLRQHG WKH VHOHFWLRQ RI LQWHUYLHZ SDUWQHUV LV OLNHO\ VNHZHG
E\ WKRVH ZKR QR ORQJHU ZLVK WR LGHQWLI\ ZLWK WKH )6/1 DUH DOVR OHVV OLNHO\
WR HQJDJH LQ WDONLQJ DERXW WKH SHULRG LQ ZKLFK WKH\ ZHUH SROLWLFDOO\ DFWLYH
ZLWK WKDW SDUW\ 7KH RQH SHUVRQ ZKR GRHV QRW PLQG H[SUHVVLQJ KLV YLHZV
DOWKRXJK KH KDV VZLWFKHG DZD\ IURP WKH )6/1 6HOYD *RQ]DOHV ZDV QRW VK\
LQ GHVFULELQJ ZKDW ZDV ZURQJ ZLWK WKH 1LFDUDJXDQ JRYHUQPHQW 6LPLODUO\
WR PRVW /LEHUDOV DQG 056 6DQGLQLVWDV KH WKRXJKW 1LFDUDJXD ZDV PRYLQJ
LQ WKH GLUHFWLRQ RI D GLFWDWRUVKLS +H WROG PH WKDW KH KDQGHG RXW IOLHUV
DJDLQVW 2UWHJD 6DDYHGUD UHFHQWO\ DQG WKDW KH EHOLHYHG WKDW LW ZDV WKH UHD
VRQ KH ZDV FKDUJHG RQ DQ RWKHUZLVH XQUHODWHG LVVXH $OVR 6HOYD *RQ]DOHV
FODLPHG WR KDYH DFTXLUHG SROLWLFDO LGHDOV LQ (DVW *HUPDQ\ DQG WKDW WKHVH
FRQWLQXHG WR EH YDOXDEOH IRU KLP 'LIIHUHQW IURP WKH RWKHU VWXGHQWV WKHVH
LGHDOV OHG KLP QRZ WR RSSRVH WKH 2UWHJD 6DDYHGUD JRYHUQPHQW
0RVW RI WKH IRUPHU VWXGHQWV DJUHHG WKDW WKH WLPH LQ (DVW *HUPDQ\
ZDV LQIOXHQWLDO LQ IRUPLQJ WKHLU LGHDOV DV SROLWLFDO EHLQJV 6RPH VHHPHG WR
VHH WKLV SHUVRQDO UHODWLRQ PLUURUHG WKH UHODWLRQVKLS EHWZHHQ WKH ''5 DQG
1LFDUDJXD DV FRXQWULHV $PLQWD $ULDV VWDWHG WKLV GLUHFWO\

3UHGLFWLRQV IRU *HUPDQ\

7RJHWKHU ZLWK WKH YLHZ RI WKH ''5 LQ WKH SDVW PRVW 6DQGLQLVWDV KDYH D
UDWKHU XQXVXDO YLHZ RI ZKDW LV OLNHO\ WR KDSSHQ LQ *HUPDQ\·V IXWXUH 7KDW
LV DOVR WUXH IRU WKH IRUPHU ''5 VWXGHQWV 0HQGLHWD WROG PH DQG P\ IULHQG
IURP 1RUZD\ WKH IROORZLQJ SUHGLFWLRQ DERXW *HUPDQ\·V IXWXUH

, WKLQN LW LV VLPSO\ QRW OLNHO\ WKDW WKH *HUPDQV ZLOO DOORZ JRLQJ
EDFN WR FDSLWDOLVP DJDLQ DW OHDVW IRU D ORQJ WLPH DIWHU KDYLQJ
UHDG WKDW ERRN >'DV .DSLWDO@

%ODQGyQ 0RQWHQHJUR URXQGHG XS P\ ILUVW PHHWLQJ ZLWK KHU ZLWK WKLV

1LFDUDJXDQV FDPH WR (DVW *HUPDQ\ WR VWXG\ PDQ\ GLIIHUHQW WKLQJV GXULQJ
WKH V 7KLV LV RQH \HDU RI VWXGHQWV IURP DOO RYHU WKH ZRUOG ZKR UHFHLYHG
D FRXUVH LQ SROLWLFDO OHDGHUVKLS DW D VFKRRO LQ WKH 'HXWVFKH 'HPRNUDWLVFKH
5HSXEOLN ''5 *HUPDQ 'HPRFUDWLF 5HSXEOLF  3KRWR 8QGLVFORVHG

, DP VXUH WKDW \RX JX\V ZLOO DOVR ZLQ DJDLQ LQ *HUPDQ\ VRRQ
EHFDXVH WKH *HUPDQ SHRSOH DUH D ILJKWLQJ SHRSOH

7KH YLHZ RI WKH IRUPHU VWXGHQWV GRHV QRW VHHP WR EH QRWLFHDEO\ GLIIHUHQW
IURP WKDW RI PDQ\ RWKHU 6DQGLQLVWDV RQ WKLV LVVXH ,W LV RQH RI WKH PRVW
VLJQLILFDQW FRQFOXVLRQV , DUULYHG DW :KR LQIOXHQFHG ZKR LQ WKLV FDVH LQ
WKHLU YLHZV LV KDUG WR GLVFRYHU JLYHQ WKDW LW VHHPV WR EH VXFK D SUHYDOHQW
YLHZ LQ 1LFDUDJXD PXFK PRUH VR WKDQ DQ\ZKHUH LQ WKH IRUPHU ''5

7KH H[SHULHQFH LQ (DVW *HUPDQ\ LQ SHUVSHFWLYH

7KH VWXGHQWV , LQWHUYLHZHG IRUPHG SDUW RI D VPDOO JURXS RI OHVV WKDQ  VWX
GHQWV ZKR ZHQW WR WKDW VFKRRO 7KHLU SHUVSHFWLYH LV RQO\ VD\LQJ VRPHWKLQJ
DERXW D JHQHUDOL]HG 1LFDUDJXDQ YLHZ WR D OLPLWHG H[WHQG 7KH QXPEHU RI
1LFDUDJXDQV ZKR ZHQW WR (DVWHUQ (XURSH RU &XED IRU VWXG\ SXUSRVHV LV
VRPHZKDW ODUJHU :KLOH , ORRNHG IRU VWXGHQWV LQ /HyQ , VWRSSHG DW WKH
)6/1 GHSDUWDPHQWR RIILFH WR DVN ZKHWKHU WKH\ NQRZ DQ\RQH ZKR ZHQW
DQG UHFHLYHG WKH IROORZLQJ DQVZHU E\ WKH SHUVRQ UHVSRQVLEOH IRU SURSD
JDQGD ´2K DERXW KDOI RI /HyQ KDV JRQH WR *HUPDQ\ DW VRPH SRLQW RI
WLPHµ 7KDW ILJXUH LV H[DJJHUDWHG EXW DPRQJ WKRVH LQYROYHG LQ 6DQGLQLVWD


 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

SROLWLFV DFWLYHO\ LW ZDV QHYHU GLIILFXOW WR ILQG VRPHRQH ZKR VWXGLHG LQ RQH
RI WKH DOOLHG FRXQWULHV GXULQJ WKH V 2Q WKH GD\ ZKHQ , FRQIURQWHG
WKH )6/1 PHPEHUV LQ /HyQ LQ FRQQHFWLRQ ZLWK WKH PHGDO WR WKH IRUPHU
(DVW *HUPDQ PLQLVWHU RI HGXFDWLRQ 0DUJRW +RQHFNHU WKH\ TXLFNO\ IRXQG
VRPHRQH VLWWLQJ DURXQG ZKR KDG EHHQ LQ (DVW *HUPDQ\ WR SUHVHQW WR PH
DV DQ H[SHUW RQ WKH PDWWHU +H ZDV MXVW D SHUVRQ ZDLWLQJ LQ WKH IURQW URRP
EXW KH ZDV UHDGLO\ DYDLODEOH WR GHIHQG WKH IRUPHU DOO\ +H VWDUWHG RXW
WHOOLQJ PH KRZ WKH\ ZHQW WR (DVW *HUPDQ\ DQG KRZ WKH\ VDZ VQRZ IRU
WKH ILUVW WLPH DQG KRZ ZHOFRPH WKH\ ZHUH DQG WKHQ PDGH WKH VWDWHPHQW
DERXW WKH %HUOLQ ZDOO KDYLQJ EHHQ D KLQGHU IRU WKH VSUHDG RI LGHRORJ\ IURP
(DVW *HUPDQ\ WKDW , PHQWLRQHG DERYH
%ODQGyQ 0RQWHQHJUR DQG 0HQGLHWD·V LGHD RI D SRVVLEOH UHYLYDO RI (DVW
HUQ (XURSHDQ VRFLDOLVP FDQ EH IRXQG DPRQJ PDQ\ RWKHU 6DQGLQLVWDV 7KH\
EHOLHYH WKH GHYHORSPHQW 1LFDUDJXD KDV JRQH WKURXJK ZLWK D ORVV RI SRZHU
RI WKH VRFLDOLVW IRUFHV LQ V DQG WKHQ D UHYHUVDO DOPRVW WZR GHFDGHV ODWHU
FDQ EH UHGRQH PDQ\ SODFHV LQFOXGLQJ *HUPDQ\ 7KH\ DOVR EHOLHYH LW ZRXOG
EH GHVLUDEOH IRU WKLV WR WDNH SODFH ,Q WKLV VHQVH PDQ\ 6DQGLQLVWDV VHHP WR
KDYH D ZRUOG YLHZ LQ ZKLFK WKH PRYHPHQWV LQ DQG KLVWRU\ RI 1LFDUDJXD LV
FRQQHFWHG ZLWK DQG DQ HVVHQWLDO SDUW RI WKH JHQHUDO KLVWRU\ RI WKH ZRUOG
LQFOXGLQJ WKDW RI (DVWHUQ (XURSH 6SHDNLQJ WR RWKHU 1LFDUDJXDQV DOVR
WKRVH ZKR QHYHU OHIW WKH FRXQWU\ WKH 6RYLHW 8QLRQ LV VHHQ DV EHQHILFLDO
WR WKH ZRUOG E\ WKRVH SRVLWLYH WR WKH 6DQGLQLVWDV DQG QHJDWLYH E\ WKRVH
RSSRVHG WR WKH 6DQGLQLVWDV (YHQ WKRXJK 6DQGLQLVPR LV VHHQ DV D GHFLG
HGO\ LQGHSHQGHQW DQG QDWLRQDO SURMHFW D FOHDU FRQQHFWLRQ EHWZHHQ WKH
H[6RYLHW 8QLRQ DQG 6DQGLQLVPR VHHPV WR H[LVW
:KHUH WKLV LGHD DERXW (DVWHUQ (XURSH DQG WKH 6RYLHW 8QLRQ RULJLQDWHG
IRU WKH JHQHUDO 6DQGLQLVWD SRSXODWLRQ LV KDUG WR GHILQH 6WXGHQWV ZKR ZHQW
DEURDG DQG WDONHG DERXW WKHLU H[SHULHQFHV OLNHO\ IRUPHG RQH RI VHYHUDO
SDUWV 6RPHKRZ WKH GLIIHUHQFH LQ ZKLFK SDUW LQ WKH 1LFDUDJXDQ(DVWHUQ
(XURSHDQ FRQQHFWLRQ ZDV RQ WKH UHFHLYLQJ HQG RI LGHRORJLFDO HGXFDWLRQ
DQG ZKR ZDV VSUHDGLQJ DQ LGHRORJ\ VHHPV WR EH OHVV FOHDU IRU PDQ\ 6DQGLQ
LVWDV ZKR UHFHLYHG LQIRUPDWLRQ DERXW WKHLU DOOLHV DEURDG DV VHFRQG KDQG
LQIRUPDWLRQ

'HSHQGHQFH RQ 5XVVLD"
)URP WKH DERYH LQWHUYLHZV DQG WKH HFRQRPLF DQDO\VLV LW LV TXLWH FOHDU WKH
SROLWLFDO DQG FXOWXUDOVRFLDO FORVHQHVV WR 5XVVLD LV QRW D GLUHFW UHIOHFWLRQ
&RQFOXGLQJ UHPDUNV 

RI FXUUHQW WUDGH OLQNV EXW UDWKHU RI SDVW HFRQRPLF UHDOLWLHV DQG SHUVRQDO
OHDUQLQJ H[SHULHQFHV 7KH FXUUHQW XQGHUVWDQGLQJ RI WKH ZRUOG ZLWK VXFK
D FHQWUDO IRFXV RQ WKH 6RYLHW 8QLRQ5XVVLD LV PRVW RI DOO WKH UHVXOW RI
SRZHU FRQVWHOODWLRQV DV WKH\ H[LVWHG ² \HDUV DJR 7KDW ZDV WKH WLPH
ZKHQ PRVW DGXOWV PDGH WKHLU SROLWLFDO DIILOLDWLRQV ,W LV DOVR D SHULRG WKDW
VWRRG RXW IURP WKH SHULRGV EHIRUH DQG DIWHU LW IRU DOO SROLWLFDO JURXSV LQ
1LFDUDJXD 7KH 6DQGLQLVWDV VHHP WR KDYH VSUHDG DPRQJ WKHPVHOYHV DQ
LGHD WKDW WKHUH ZDV D PRUH RU OHVV QRQKLHUDUFKLFDO UHODWLRQVKLS EHWZHHQ
WKHPVHOYHV DQG WKHLU DOOLHV DEURDG 7KH SRSXODU GLVFRQWHQW LQWHUQDOO\
ZLWKLQ (DVWHUQ (XURSHDQ ZLWK WKHLU UHJLPHV GXULQJ WKH V LV DOPRVW
QHYHU FRPPXQLFDWHG
$OWKRXJK PDQ\ 6DQGLQLVWDV VHH WKLQJV WKLV ZD\ LW GRHV QRW DXWRPDWL
FDOO\ IROORZ WKDW WKH WULDOV RI 2UWHJD 6DDYHGUD WR DOO\ 1LFDUDJXD ZLWK 5XVVLD
DJDLQ DUH DQ H[SUHVVLRQ RI WKLV :H FDQQRW NQRZ ZKHWKHU 2UWHJD 6DDYHGUD
DQG KLV DGYLVHUV KDYH WKH VDPH LGHD DERXW WKH ZRUOG DV PRVW 6DQGLQLVWDV
DQG ZKHWKHU WKH JRYHUQPHQW·V SROLWLFV DUH VXEVWDQWLDOO\ LQIOXHQFHG E\ WKLV
$QRWKHU UHDVRQ FRXOG EH WKDW WKH FXUUHQW H[SDQVLRQ LQ UHODWLRQV WRZDUGV
5XVVLD LV D FRQVFLRXV 1LFDUDJXDQ WULDO RI GLYHUVLI\LQJ LWV UHODWLRQV WR RWKHU
FRXQWULHV 2UWHJD FRXOG MXVW PDNH XVH RI SUHH[LVWLQJ VHQWLPHQWV ,W LV
LPSRVVLEOH WR GHWHUPLQH WKLV DV DQ DQWKURSRORJLVW LI RQH GRHV QRW KDYH
GLUHFW DFFHVV WR DOO RI 2UWHJD 6DDYHGUD·V PHHWLQJ , GLG QRW KDYH DFFHVV WR
DQ\ RI KLV PHHWLQJV QRU GLG , HYHU VSHDN WR 2UWHJD 6DDYHGUD LQ SHUVRQ ,Q
DQ\ FDVH WKH IUHHGRP WR EXLOG UHODWLRQV ZLWK 5XVVLD LV OLNHO\ RULJLQDWLQJ LQ
WKH IDFW WKDW WKH 8QLWHG 6WDWHV GRHV QRW KDYH WKH GRPLQDQFH LW SUHYLRXVO\
KDG RYHU WKH UHJLRQ

&RQFOXGLQJ UHPDUNV
:H KDYH VHHQ WKDW WKHUH LV D SDUWLFXODU 1LFDUDJXDQ LQWHUSUHWDWLRQ RI ZRUOG
HYHQWV DOVR WKRVH WDNLQJ SODFH LQ (XURSH ZKLFK LV PLUURUHG E\ WKRVH VWX
GHQWV ZKR ZHQW WR VWXG\ WKHUH GXULQJ WKH V 7KH 6RYLHW 8QLRQ DQG LWV
(DVWHUQ (XURSHDQ DOOLHV GLG UHSUHVHQW IRU VHYHUDO RI WKH VWXGHQWV ZKR ZHQW
WKHUH D FHQWHU RI LGHRORJLFDO GLIIXVLRQ WKH\ VWLOO EHOLHYH KDV LQIOXHQFHG
PXFK RI WKHLU FXUUHQW GRLQJV 6HYHUDO RI WKHP KDYH JDLQHG YDOXDEOH SRVWV
ZLWKLQ WKH FXUUHQW 6DQGLQLVWD UXQ JRYHUQPHQW :KLOH WKH 6RYLHW 8QLRQ
PD\ QRW KDYH EHHQ D FHQWHU LQ WKH 'HSHQGHQF\ 7KHRU\ VHQVH DV D FHQWHU
IRU WKH DFFXPXODWLRQ RI PDWHULDO ZHDOWK WKH 6RYLHW 8QLRQ DQG WKH :DUVDZ
3DFW FRXQWULHV KDG D VLPLODU HIIHFW LQ WHUPV RI WKH SURGXFWLRQ RI LGHRORJ\
 +LVWRULF UHODWLRQV ZLWK (DVWHUQ (XURSH

DQG DOOHJLDQFH WKURXJK LWV UHODWLRQV ZLWK 1LFDUDJXD GXULQJ WKH V
7KLV GRHV QRW H[SODLQ ZK\ 1LFDUDJXD REMHFWLYHO\ KDV GLIIHUHQW RSWLRQV
WKDQ RWKHU SHULSKHUDO FRXQWULHV LQ D VLPLODU VLWXDWLRQ EXW LW PD\ JLYH
VRPH LQGLFDWLRQV DV ZK\ WKH RSWLRQV DYDLODEOH WR 1LFDUDJXD DUH SHUFHLYHG
DV EHLQJ GLIIHUHQW E\ 1LFDUDJXDQV ,W LV WKH SDVW UHODWLRQ WR DQ LGHRORJLFDO
FHQWHU WKDW DOWKRXJK WKH FHQWHU PD\ EH QRQH[LVWHQW WRGD\ KDV KDG D
ODVWLQJ HIIHFW RQ 1LFDUDJXDQ LGHDV DERXW WKH ZRUOG DQG WKH UHSHUWRLUH RI
SRVVLEOH DFWLRQV 6DQGLQLVWDV EHOLHYH DUH DYDLODEOH WR WKHPVHOYHV
 2CTCLRF "F?NRCP

%?ARMPQ RF?R BGDDCPCLRG?RC 2?LBGLGQR?Q

$V WR EH H[SHFWHG LQ DQ\ PRGHUQGD\ VRFLHW\ VHYHUDO IDFWRUV GLVWLQJXLVK
1LFDUDJXDQV 7KLV DOVR DSSOLHV WR WKH SDUW RI WKH SRSXODWLRQ LGHQWLILHG DV
6DQGLQLVWDV *HRJUDSK\ LV RQH NH\ IDFWRU LQ GHWHUPLQLQJ GLIIHUHQFHV 6DQ
GLQLVWDV LQ WKH FRXQWU\VLGH WHQG WR EH OHVV DFDGHPLFDOO\ PLQGHG DQG WKHLU
XQGHUVWDQGLQJ RI 6DQGLQLVPR GLIIHUV VRPHZKDW IURP WKDW RI 1LFDUDJXDQV
ZKR OLYH LQ FLWLHV 7KH ODWWHU VRPHWLPHV GHVFULEH UXUDO FRQFHSWXDOL]DWLRQV
RI 6DQGLQLVPR DV UHVHPEOLQJ D UHOLJLRQ FRPSOHWH ZLWK VKULQHV EXLOW WR
FRPPHPRUDWH -RVp 'DQLHO 2UWHJD 6DDYHGUD DQG &DUORV )RQVHFD $PDGRU
%HWZHHQ GLIIHUHQW FLWLHV DQ LPPHQVH YDULHW\ H[LVWV LQ WKH VWUHQJWKV RI
EHOLHI LQ 6DQGLQLVPR DQG WKH PHDQLQJ RI EHLQJ D 6DQGLQLVWD
/HyQ LV VHHQ DV WKH FDSLWDO RI 6DQGLQLVPR 7KDW LV EHFDXVH /HyQ ZDV
OLEHUDWHG E\ 6DQGLQLVWDV IURP WKH 6RPR]D UHJLPH EHIRUH 0DQDJXD $G
GLWLRQDOO\ WKH FLW\ KDV RQO\ KDG 6DQGLQLVWD FLW\ JRYHUQPHQWV VLQFH WKH
LQVXUUHFWLRQ RI  9HU\ IHZ /LEHUDOV UHVLGH LQ /HyQ DQG LW VHHPV WKH
/HyQ 6DQGLQLVWDV PDQLIHVW PRUH VHOIFRQILGHQFH WKDQ WKRVH LQ 0DQDJXD
:KHQ , VKRZHG D YLGHR RI 6DQGLQLVWD SURWHVWV LQ /HyQ WR 6DQGLQLVWD LQIRU
PDQWV LQ 0DQDJXD WKH\ ZHUH VXUSULVHG E\ KRZ DUWLFXODWH WKH SURWHVWHUV
LQ /HyQ ZHUH DQG KRZ GHYRWHG WKH\ VHHP WR WKH FDXVH RI 6DQGLQLVPR ,Q
0DQDJXD ZLWK 6DQGLQLVWD PD\RUV RQO\ VLQFH  6DQGLQLVWDV WHQG WR EH
PRUH FULWLFDO RI WKH YDULRXV WKLQJV WKDW KDYH EHHQ GRQH LQ WKH QDPH RI
6DQGLQLVPR
7KH GLIIHUHQFHV LQ RWKHU FLWLHV DQG SODFHV DUH QXPHURXV ,Q *UDQDGD
6DQGLQLVPR LV D PLQRULW\ SRVLWLRQ 2Q WKH $WODQWLF FRDVW LQ WKH V &RQ
WUDV RXWQXPEHUHG 6DQGLQLVWDV 7KH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO
)6/1 KDV RQO\ UHFHQWO\ EHHQ DEOH WR PDNH D SDFW ZLWK LQIOXHQWLDO JURXSV
WKHUH 7KH LVODQG 2PHWHSH DQG PXFK RI HDVWHUQ 1LFDUDJXD GLG QRW H[SHUL
HQFH WKH UHYROXWLRQDU\ LQVXUUHFWLRQ DQG GRHV QRW KDYH WKH VDPH UHODWLRQ
WR WKLV HYHQW DV PRVW RWKHU SODFHV 7KH QRUWKHUQPRVW FLWLHV OLNH (VWHOt DQG
0DWDJDOSD ZHUH FORVH WR DUHDV ZLWK SK\VLFDO EDWWOHV LQ WKH V DQG GLG
QRW H[SHULHQFH D 6DQGLQLVWD JRYHUQPHQW LQ D UHODWLYHO\ SHDFHIXO HQYLURQ
PHQW DV ZDV WKH FDVH IRU 0DQDJXD DQG /HyQ ,W LV QRW KDUG WR LPDJLQH KRZ


3HWURQLOi 'DYLOD D WHDFKHU DQG 6DQGLQLVWD LQ (O 5DPD HDVWHUQ 1LFDUDJXD 
H[SODLQV WKDW ZKHQ VKH DQG KHU FRZRUNHUV KHDUG VKRWV WKUHH GD\V EHIRUH WKH
WULXPSK RI WKH UHYROXWLRQ  -XO\  WKH\ FRXOG QRW LPDJLQH ZKDW LW FRXOG
EH 6RPH WKRXJKW LW FRXOG EH UHODWHG WR WKH FHOHEUDWLRQV RI WKH DQQXDO GD\
RI WKH WHDFKHU 6KH KHUVHOI WKRXJKW LW PD\ EH SDUW RI WKH UHOLJLRXV IHVWLYLWLHV
WKDW VWDUW LQ ODWH VXPPHU 7KH UHYROXWLRQDU\ PRYHPHQW KDG QRW DUULYHG LQ
(O 5DPD EHIRUH LW WULXPSKHG /DWHU 'DYLOD SDUWLFLSDWHG LQ WKH RUJDQL]DWLRQ
RI 6DQGLQLVWD HGXFDWLRQ SURJUDPV IRU VRPH RI WKH PRVW UHPRWH YLOODJHV

JHRJUDSKLFDO IDFWRUV PDNH D GLIIHUHQFH LQ ZKDW LW PHDQV WR EH D 6DQGLQLVWD

$QRWKHU LPSRUWDQW GLVWLQFWLRQ EHWZHHQ 6DQGLQLVWDV LV VRFLRHFRQRPLF
FODVV $OWKRXJK 6DQGLQLVPR HQWDLOV DQ LGHDO RI HTXDOLW\ QRW DOO 6DQGLQLVWDV
FRPH IURP WKH VDPH VRFLRHFRQRPLF EDFNJURXQG DQG GLIIHUHQFHV EHWZHHQ
GLIIHUHQW VRFLDO FODVVHV KDYH QRW EHHQ HOLPLQDWHG VLQFH 
0\ ILUVW ODQGORUG LQ /HyQ 5LJR 6DPSVRQ 'DYLOD LV WKH VRQ RI D IRU
PHU 6DQGLQLVWD PD\RU DQG D PHPEHU RI WKH )6/1 +H RZQV D UHODWLYHO\
ODUJH GRZQWRZQ KRXVH ZLWK VHYHUDO HPSOR\HHV +H ZRUNV IRU D 1RUZH
JLDQ VWXGHQW H[FKDQJH RUJDQL]DWLRQ DQG KH WUDYHOV ERWK LQ /DWLQ $PHULFD
DQG (XURSH 2Q WKH VLGH KH DOVR ZRUNV DV D WRXULVW JXLGH IRU ERWK (XUR
SHDQ DQG 86 $PHULFDQ WRXULVWV +LV H[SODQDWLRQ IRU ZK\ WKLQJV KDYH QRW
ZRUNHG RXW DV ZHOO IRU 1LFDUDJXD DV IRU &RVWD 5LFD KLVWRULFDOO\ LV WKDW WKH
HWKQLF PDNHXS RI 1LFDUDJXD ZLWK LWV PDQ\ LQGLJHQRXV LQIOXHQFHV KDV EHHQ
D KLQGUDQFH WR SURJUHVV DQG WKDW &RVWD 5LFD ZLWK LWV VLJQLILFDQWO\ KLJKHU
SHUFHQWDJH RI (XURSHDQ LPPLJUDQWV KDV HQMR\HG PXFK EHWWHU FRQGLWLRQV
2QH RI 6DPSVRQ 'DYLOD·V JUHDWHVW FRQFHUQV LV WKDW WKH -RVp 'DQLHO 2UWHJD
6DDYHGUD JRYHUQPHQW SXWV XS JLJDQWLF ELOOERDUGV DGYHUWLVLQJ LWVHOI WR WKH
1LFDUDJXDQ SRSXODWLRQ LQVWHDG RI XVLQJ WKH PRQH\ WR DGYHUWLVH 1LFDUDJXD


-RVp 5REHUWR &XWEHUW 5DPtUH] )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1
PD\RU RI /DJXQD 3HUOD LQ WKH 5HJLyQ $XWyQRPD GHO $WOiQWLFR 6XU 5$$6  H[
SODLQV WR P\ FRZRUNHU &DUORV $OEHUWR 5RFKD &DVWUR DQG PH WKDW ZKLOH WKH
)6/1 KDV PDQDJHG WR REWDLQ VXSSRUW DPRQJVW LQGLJHQRXV DQG EODFNV RQ WKH
HDVW FRDVW LQ UHFHQW \HDUV ZKHUH WKH SDUW\ WUDGLWLRQDOO\ ZDV ZHDN WKH SDUW\
QRZ ODFNV VXSSRUW DPRQJVW PLJUDQWV IURP WKH 3DFLILF FRDVW EHFDXVH WKH
SDUW\ LV VHHQ DV UHSUHVHQWLQJ D SURJUDP RI UHJLRQDO DXWRQRP\ DQG LQGLJH
QRXV SHRSOH·V ULJKWV 2WKHU UHJLRQDO GLIIHUHQFHV LQ WKH UROH RI WKH )6/1 H[LVW
LQ RWKHU SDUWV RI 1LFDUDJXD 3KRWR &DUORV $OEHUWR 5RFKD &DVWUR

DV D WRXULVW GHVWLQDWLRQ LQ VRPH OHDGLQJ 86 $PHULFDQ PDJD]LQH 6DPSVRQ

'DYLOD HPSKDVL]HV WKDW KH GRHV QRW ZDQW WKLV MXVW WR KHOS KLV RZQ EXVLQHVV
+H PDNHV LW FOHDU WKDW KH VHHV WKH KLVWRULF UROH RI 6DQGLQLVPR DV RQH RI
LPSURYLQJ DOO 1LFDUDJXDQV· OLYHV +H VHHV WKLV DV DFKLHYDEOH QRW E\ DEROLVK
LQJ FDSLWDOLVP EXW E\ PDNLQJ 1LFDUDJXD D SODFH WKDW DWWUDFWV LQYHVWPHQW
E\ SURPRWLQJ 1LFDUDJXDQ SURGXFWV ZRUOGZLGH $W ILUVW , VDZ 6DPSVRQ
'DYLOD·V LGHDV DV O\LQJ IDU DZD\ IURP VRFLDOLVW LGHRORJ\ DQG ZKDW , KDYH
FRPH WR XQGHUVWDQG DV PDNLQJ XS 6DQGLQLVPR :LWK WLPH , XQGHUVWRRG
WKDW KH LV QRW WKH RQO\ 6DQGLQLVWD ZLWK VXFK EHOLHIV )RU PDQ\ ZHDOWK\
6DQGLQLVWDV LQ 0DQDJXD DQG /HyQ 6DQGLQLVPR VHHPV WR EH PRVW RI DOO D
QDWLRQDOLVW 1LFDUDJXDQ LGHRORJ\ 6RPH RI WKHP WROG PH 6DQGLQLVPR LV DQ
LGHRORJ\ WKDW RQO\ 1LFDUDJXDQV FDQ EHOLHYH LQ DQG GRHV QRW H[WHQG EH\RQG
WKH ERUGHUV RI 1LFDUDJXD 7KH\ DOVR H[SODLQHG WKDW WKH\ EHOLHYHG WKH VR
FLDOLVW RU FRPPXQLVW HOHPHQWV IRXQG LQ WKH SROLWLFV RI WKH )6/1 KLVWRULFDOO\
ZHUH VRPHWKLQJ WKDW WKH 6RYLHW 8QLRQ LPSRVHG RQ &DUORV )RQVHFD $PDGRU
$FFRUGLQJ WR WKLV ORJLF VRFLDOLVW HOHPHQWV GR QRW DFWXDOO\ FRQVWLWXWH D SDUW
RI WKH ¶UHDO· 6DQGLQLVPR 6DQGLQLVPR IRU WKHP VHHPV WR EH QRW PXFK PRUH

 6LPLODU WR 6DQGLQLVWD H[SODQDWLRQV RI WKH LQIOXHQFH RI WKH 8QLWHG 6WDWHV RQ 1LFDUDJXD

H[SODQDWLRQV RI 6RYLHW 8QLRQ LQIOXHQFH DUH DOVR GHVFULEHG DV PHFKDQLFDO LQ WKH VHQVH WKDW
WKH\ DUH QRW WKH UHVXOW RI WKH GHFLVLRQV RI LQGLYLGXDOV WKDW GLYHUW KLVWRU\ IURP LWV QDWXUDO
SDWK³ZKLFK ZRXOG FRQVWLWXWH KLVWRULFDO DJHQF\ *UDHEHU  ³EXW UDWKHU WKDW LW LV SDUW


 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

WKDQ WKH QDWLRQDOLVW EHOLHI LQ WKH SRVVLELOLW\ RI GHYHORSLQJ 1LFDUDJXD DQG

JLYLQJ 1LFDUDJXDQV D QDWLRQDOLVW SHUVSHFWLYH
6RPH 6DQGLQLVWDV RZQ H[WUHPHO\ OLWWOH LQ PDWHULDO WHUPV VXFK DV WKH
YHWHUDQV ZKR IRXJKW LQ WKH UHYROXWLRQ DQG QRZ NHHS XS D PXVHXP LQ WKH
WRZQ FHQWHU RI /HyQ (YHU\ WLPH , VDZ WKHP WKH\ H[SUHVVHG DQ LQWHUHVW
LQ H[SODLQLQJ WKH GLIIHUHQW DVSHFWV RI WKHLU VWUXJJOH GXULQJ WKH V DQG
V WR PH 7KH\ EODVW RXW WKH VDPH UHFRUGLQJV RI D IHZ )6/1 UHYROXWLRQ
DU\ VRQJV DFURVV WKH WRZQ VTXDUH XVLQJ DQ XQXVXDOO\ ORXG VRXQG V\VWHP
(FRQRPLFDOO\ WKH\ KDYH OLNHO\ QRW ZRQ DQ\WKLQJ WKURXJK WKH UHYROXWLRQ
7KHLU LGHRORJ\ HPSKDVL]HV WKH LQVXUUHFWLRQ RI WKH V DQG WKH SODQ IRU
VRFLDO FKDQJH WKDW WKH )6/1 VWRRG IRU LQ WKH V , KHDUG RWKHU 6DQGLQ
LVWDV VD\ WKH\ ZHUH GUXJJHG PRVW RI WKH WLPH 0RVW OLNHO\ WKLV LV VDLG LQ D
ELG WR GLVFRXQW WKHLU LGHRORJ\
6XFK XUEDQUXUDO GLIIHUHQFHV DQG VRFLRHFRQRPLF FODVV DUH WUHPHQ
GRXVO\ SRZHUIXO IDFWRUV LQ GHWHUPLQLQJ KRZ D PHPEHU RI D SROLWLFDO PRYH
PHQW WKLQNV DQG DFWV LQ PRVW SODFHV LQ WKH ZRUOG ,W LV DOVR WUXH LQ WKH FDVH
RI 1LFDUDJXD , KHUH SUHVHQW WKUHH RWKHU IDFWRUV , IRXQG WR EH VXUSULVLQJO\
LQIOXHQWLDO LQ GHWHUPLQLQJ KRZ DQ LQGLYLGXDO 6DQGLQLVWD LQIRUPDQW VKRZHG
KLV SROLWLFDO LGHQWLW\ DQG ZKDW WKH SROLWLFDO LGHQWLW\ RI 6DQGLQLVPR PHDQW
WR KLP 7KHVH GLIIHUHQFHV LW VHHPV DUH WKH RQHV PRVW WDONHG DERXW DPRQJ
1LFDUDJXDQV WRGD\
, IHHO LW LV VDIH WR VD\ WKDW WKHUH LV D FRQFHSW D SURWRW\SH 6DQGLQLVWD
WKDW LV VKDUHG ZLWKLQ 1LFDUDJXDQ VRFLHW\ 7KLV SURWRW\SH KDV WR GR ZLWK
WKH UKHWRULF XVHG LQ PDLQVWUHDP VRFLHW\ 7KH SURWRW\SH LV ZKDW HYHU\
LQGLYLGXDO 6DQGLQLVWD UHODWHV DQG LV FRPSDUHG WR 7KLV LV WUXH HYHQ IRU
WKRVH ZKR DFNQRZOHGJH WKDW WKH\ GLIIHU D ORW IURP WKLV SURWRW\SH $VNLQJ
WKH  \HDU ROG GDXJKWHU RI 6DQGLQLVWDV +HOHQ 0D\GHOLQ 6DOPHUyQ 9iVTXH]
LI VKH WKRXJKW D SURWRW\SH 6DQGLQLVWD H[LVWHG VKH DJUHHG DQG GHILQHG WKLV
SURWRW\SH

,W LV VRPHRQH ZKR DWWHQGHG PLOLWDU\ VHUYLFH >LQ WKH V@

ZKR ZRUNHG IRU WKH UHYROXWLRQ ZKR WKHQ FULHG DQG JRW GUXQN
ZLWK WKH ORVV RI  ZKR FRQWLQXHG WR ZRUN ZLWK WKH SDUW\
GXULQJ WKH  \HDUV WKH )UHQWH ZDVQ·W LQ SRZHU DQG ZKR QRZ
KDV EHHQ FRPSHQVDWHG ZLWK D JRRG SRVLWLRQ

RI WKH QDWXUDO IORZ RI KLVWRU\ DV DQ HPSLUH WKDW LV VSUHDGLQJ DQ LGHRORJ\ WKDW LV VXEVHUYLHQW
WR LWV RZQ QDWLRQDO LQWHUHVWV
)UDQFLVFR ,VLGRUR 6REDOYDUUR %DOGHORPDU IURP /D (VSHUDQ]D (O 5DPD IRXJKW
GXULQJ WKH LQVXUUHFWLRQ RI WKH ODWH V $IWHU WKH WULXPSK RI WKH UHYR
OXWLRQ KH UHWLUHG WR FLYLOLDQ OLIH ,Q  WKH SDUW\ DVNHG KLP WR UHWXUQ
WR WKH PLOLWDU\ DV UHVSRQVLEOH RI RUJDQL]LQJ WKH PLOLWDU\ VHUYLFH RI ZKLFK
KH EHOLHYHV WR KDYH KDG D GHFLGLQJ LPSRUWDQFH LQ LWV LPSOHPHQWDWLRQ +H
FRQWLQXHG WR VWD\ ZLWK WKH SDUW\ DIWHU WKH HOHFWRUDO ORVV 7KLV PDNHV KLP
IXOILOO VHYHUDO RI WKH FULWHULD RI EHLQJ D SURWRW\SH 6DQGLQLVWD WKH ZD\ \RXQJHU
6DQGLQLVWDV KDYH GHILQHG LW IRU PH 6REDOYDUUR %DOGHORPDU KDV KRZHYHU
QRW EHHQ FRPSHQVDWHG IRU KLV KHOS GXULQJ WKH \HDUV RI RSSRVLWLRQ ZLWK D
¶JRRG MRE· EXW LQVWHDG UXQV D JURFHU\ VWRUH LQ 0DQDJXD +H DOVR IRUPV SDUW
RI WKH ¶$PLJRV· QHWZRUN RI %D\DUGR -RVp )RQVHFD *DOR ZKR VHQGV 6REDOYDUUR
%DOGHORPDU WR DFFRPSDQ\ PH WR (O 5DPD DW RQH WLPH

7KH ZD\ WKRVH ZKR UHVHPEOH WKLV SURWRW\SH 6DQGLQLVWD VSHDN UHVHP
EOHV KRZ WKRVH FORVH WR 2UWHJD 6DDYHGUD H[SUHVV WKHPVHOYHV LQ SXEOLF
HYHQWV 7KH VHQLRU FLWL]HQV LQ /HyQ , PHQWLRQHG DERYH IDOO ZLWKLQ WKLV
FDWHJRU\ DOWKRXJK ZKDW XQLWHV WKHP LV WKHLU HQJDJHPHQW LQ WKH JXHUULOOD
ILJKWLQJ RI WKH V QRW WKH PLOLWDU\ VHUYLFH RI WKH V 7KH OLIHVWRULHV
RI WKHVH FXUUHQWO\ GRPLQDWH DPRQJ 6DQGLQLVWDV 7KH RWKHU W\SHV RI 6DQGLQ
LVWDV , ZLOO SUHVHQW KHUH DUH DOZD\V GHILQHG WKURXJK KRZ WKH\ GLIIHU IURP
WKLV JURXS $V VDLG DOO RI WKHP DUH DZDUH RI WKLV FRQFHSW RI D 6DQGLQLVWD
SURWRW\SH DQG RIWHQWLPHV GHVFULEH WKHPVHOYHV LQ WHUPV RI KRZ WKH\ GLIIHU
IURP LW $OO IRXU W\SHV RI LQYHVWLJDWLYH SURMHFWV KHOSHG LQ JDLQLQJ NQRZO
HGJH DERXW WKHVH GLIIHUHQFHV , HQFRXQWHU WKH JHQHUDWLRQDO JDS WKURXJK
FRQYHUVLQJ ZLWK VHYHUDO PDLQ LQIRUPDQWV LQ GHSWK DQG WKH MRXUQDOLVWLF
SURMHFW SXW PH LQ WRXFK ZLWK VHYHUDO RI WKH \RXQJHU FXUUHQWO\ SROLWLFDOO\
DFWLYH 6DQGLQLVWDV


$JDSLWR /DJXQD GHVFULEHV WR PH KRZ KLV IDWKHU DOWKRXJK LGHQWLI\LQJ ZLWK WKH
&RQVHUYDWLYHV FDPH LQWR WURXEOH ZLWK WKH PLOLWDU\ DQG HQGHG XS ILJKWLQJ
WRJHWKHU ZLWK $XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR :KHQ KLV IDWKHU ZDV
DERXW WR GLH KH DVNHG /DJXQD WR FRQWLQXH WKH VWUXJJOH $OVR %D\DUGR -RVp
)RQVHFD *DOR WHOOV PH WKDW KLV JUDQGIDWKHU UHYHDOHG WR KLP WKDW KH KDG IRXJKW
WRJHWKHU ZLWK &DOGHUyQ 6DQGLQR 7KH\ DUH WKH H[FHSWLRQ )RQVHFD *DOR VD\V
DERXW /DJXQD WKDW KH ¶IRUPV WKH OLQN· IURP WKHLU WR WKH ROGHU JHQHUDWLRQ
0RVW 6DQGLQLVWDV ZKR ZHUH DFWLYH VWDUWLQJ LQ WKH V RU HDUOLHU FODLP WR
KDYH LQLWLDWHG WKHLU VWUXJJOH WKHPVHOYHV LQGHSHQGHQWO\ RI WKH IDPLO\

$JH DV D GHILQLQJ IDFWRU

7KH 1LFDUDJXDQ UHYROXWLRQ LV WKH \RXQJHVW UHYROXWLRQ LQ /DWLQ $PHULFD
7KH UHODWLYHO\ VKRUW WLPH WKDW KDV SDVVHG VLQFH WKH EHJLQQLQJ RI WKH 6DQ
GLQLVWD PRYHPHQW  RU  GHSHQGLQJ RQ KRZ RQH VHHV LW LV QRW
IXUWKHU LQ WKH SDVW WKDQ WKDW LW ZRXOG DOORZ IRU PDQ\ 1LFDUDJXDQV WR KDYH
SDUWLFLSDWHG LQ LW IURP LWV LQFHSWLRQ WR WKH SUHVHQW 7KH UHDOLW\ LV WKDW
WKH SHULRG LQ ZKLFK D 6DQGLQLVWD LV RU ZDV SROLWLFDOO\ DFWLYH RU VRPHRQH
FORVH WR KLP ZDV RU LV DFWLYH LV QRW WKH VDPH IRU DOO 6DQGLQLVWDV 0DQ\
6DQGLQLVWDV KDYH QRW SDUWLFLSDWHG LQ SROLWLFDO OLIH IRU RQH RU VHYHUDO ORQJHU
SHULRGV RI WLPH 6RPH LQIRUPDQWV KDYH EHHQ DFWLYH LQ DOO UHFHQW SROLWL
FDO SKDVHV DV 6DQGLQLVWD IURP WKH V XQWLO QRZ DQG RWKHUV KDYH RQO\
EHHQ DFWLYH UHFHQWO\ 2WKHUV ZHUH DFWLYH GXULQJ SDUWV RI WKH V WKHQ
GULIWHG LQWR RWKHU SURMHFWV DQG RQO\ UHFHQWO\ EHFDPH LQYROYHG DJDLQ 1RW
DOO SKDVHV DUH HTXDOO\ UHOHYDQW LQ GHWHUPLQLQJ ZKHUH D 1LFDUDJXDQ VWDQGV


$JH DV D GHILQLQJ IDFWRU 

SROLWLFDOO\ DW SUHVHQW )RU PRVW LQIRUPDQWV ZKHUH WKH\ VWDQG SROLWLFDOO\ LV

GHWHUPLQHG E\ ZKDW VLGH WKDW SHUVRQ·V IDPLO\ VWRRG RQ LQ WKH V ,Q WKLV
VHQVH SDUWLFLSDWLRQ LQ SROLWLFV ZKLFK LV SUHVHQWHG E\ WKH LQIRUPDQWV DV LQ
WKH V DQG V KDYLQJ EHHQ D ODUJHO\ LQGLYLGXDOLVWLF FKRLFH LV QRZ
IRU PDQ\ D PDWWHU RI IDPLO\ PHPEHUVKLS DQG DOOLDQFHV &DUROLQD )RQVHFD
,FDEDO]HWD DQG 6DOPHUyQ 9iVTXH] ERWK DUH VHFRQG JHQHUDWLRQ 6DQGLQLVWDV
DQG DJUHH RQ WKLV YLHZ
)RQVHFD ,FDEDO]HWD H[SODLQHG WKH WUDQVLWLRQ IURP YROXQWDU\ WR ELRORJL
FDO GHILQLWLRQ RI EHFRPLQJ D 6DQGLQLVWD WKLV ZD\

0DQ\ RI WKRVH ZKR KDG EHFRPH 6DQGLQLVWD WKURXJK DQ LQGL

YLGXDO FKRLFH RI WKHLU RZQ ORRNHG IRU DQRWKHU 6DQGLQLVWD WR
PDUU\ 7KHLU NLGV RIWHQ EHFDPH 6DQGLQLVWD E\ ELUWK

7DWDU   LQ KLV EULHI DQWKURSRORJLFDO RYHUYLHZ RI WKH ILUVW SKDVH
RI WKH 6DQGLQLVWD UHYROXWLRQ SRUWUD\HG IDPLO\ WLHV DV RQH RI WKH PRVW VLJ
QLILFDQW IDFWRUV LQ GHWHUPLQLQJ ZKHWKHU VRPHRQH ZRXOG SDUWLFLSDWH LQ
LQVXUUHFWLRQLVW DFWLRQ LQ  +LV ILHOGVWXG\ RI 1LFDUDJXD WRRN SODFH LQ
  \HDUV DIWHU WKH LQVXUUHFWLRQ LQ WKH YLOODJH RI 0RQLPEy RXWVLGH
0DVD\D DQG KH UHOLHG RQ VRPH RUDO DFFRXQWV FROOHFWHG DQG ZULWWHQ GRZQ
LQ WKH HDUO\ V E\ WKH 1LFDUDJXDQ UHVHDUFK LQVWLWXWH ,QVWLWXWR GH (VWX
GLR GHO 6DQGLQLVPR ,(6  $ KLJK QXPEHU RI SHUVRQDO DFFRXQWV DPRQJ P\
LQIRUPDQWV RI WKH V JR FRQWUDU\ WR WKH GHVFULSWLRQ RI 7DWDU HVSHFLDOO\
DPRQJ 6DQGLQLVWDV ZLWK DQ XUEDQ EDFNJURXQG 7KHVH 6DQGLQLVWDV HPSKD
VL]H SHUVRQDO FKRLFH UDWKHU WKDQ IDPLO\ WLHV WR KDYH EHHQ LPSRUWDQW LQ
PDNLQJ WKHP 6DQGLQLVWDV ,W VHHPV WKDW 7DWDU·V GHVFULSWLRQ GRHV OLNHO\ QRW
FRYHU WKH NLQGV RI 6DQGLQLVWDV , KDYH PRVW FRQWDFW ZLWK , FDQQRW RXWUXOH
WKDW LW PD\ KDYH EHHQ GLIIHUHQW IRU RWKHU 6DQGLQLVWDV 7KH GLVWLQFWLRQ PD\
EH SDUW RI WKH GLIIHUHQFH EHWZHHQ XUEDQ DQG UXUDO 6DQGLQLVWDV PHQWLRQHG
LQLWLDOO\

 :KDW PDNHV RXW D IDPLO\ IRU P\ XUEDQ 1LFDUDJXDQ LQIRUPDQWV GRHV QRW VHHP WR
GLIIHU WKDW PXFK IURP PDQ\ SDUWV RI (XURSH :KHQ , DVNHG WKHP WR GHILQH WKH WHUP IRU
PH )RQVHFD ,FDEHO]HWD DQG 6DOPHUyQ 9iVTXH] GHILQHG WKH PHDQLQJ RI ¶D IDPLO\· VOLJKWO\
GLIIHUHQWO\ ² )RQVHFD ,FDEHO]HWD EHOLHYHV PRVW 1LFDUDJXDQV GHILQH LW DV ´DOO WKH SHRSOH ZKR
OLYH LQ RQH KRXVH WRJHWKHUµ ZKHUHDV 6DOPHUyQ 9iVTXH] GHILQHV LW DV WKH ´WKRVH >ELRORJLFDO
IDPLO\ PHPEHUV@ ZKR DUH JHRJUDSKLFDOO\ FORVHVWµ $FFRUGLQJ WR HLWKHU ZD\ RI PHDVXULQJ
WKH\ DUULYH DW IDPLO\ VL]HV RI WZR WR  SHRSOH
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

7KH OLWHUDF\ FDPSDLJQ FHOHEUDWLRQ

7KH ILUVW WLPH , EHFDPH DZDUH RI WKH GLVFUHSDQF\ EHWZHHQ ROGHU DQG \RXQJHU
6DQGLQLVWDV ZDV ZKHQ WKH 1LFDUDJXDQ /LWHUDF\ &DPSDLJQ FHOHEUDWHG LWV
WK ELUWKGD\ ZLWK D PRELOH HGXWDLQPHQW PXVHXP WKDW PRYHG DURXQG
WKH FRXQWU\ DQG SODFHG LQ GLIIHUHQW FLWLHV IRU VHYHUDO ZHHNV WR PRQWKV ,
FDXJKW LW LQ /HyQ DQG ZDV SUHVHQW DW WKH GD\ RI LWV LQDXJXUDWLRQ 7KH FHQWHU
FRQVLVWHG RI D IHZ FRQWDLQHUV ZKLFK KDG YDULRXV FRPSXWHUV DQG D 79 ZLWK
PXOWLPHGLD FRQWHQWV GHVFULELQJ WKH H[SHULHQFH RI WKRVH ZKR ZHQW RXW LQ
WKH FRXQWU\VLGH DV SDUW RI WKH OLWHUDF\ FDPSDLJQ LQ WKH HDUO\ V 7KH
LGHD EHKLQG WKLV PXVHXP , ZDV WROG E\ WKH 6DQGLQLVWDV UXQQLQJ LW ZDV
WR HQFRXUDJH \RXQJ 1LFDUDJXDQV WRGD\ WR VLJQ XS DQG YROXQWHHU IRU WKH
FXUUHQW OLWHUDF\ FDPSDLJQ ¶<R Vt SXHGR·
$W WKH LQDXJXUDWLRQ FHUHPRQ\ LQ /HyQ DOPRVW DOO WKH DWWHQGDQWV ZHUH
DGXOWV 7KH VSHDNHU DVNHG DOO WKH DXGLHQFH WR VWDQG XS DQG VLQJ WKH K\PQ
RI WKH OLWHUDF\ FDPSDLJQ RULJLQDOO\ XVHG LQ WKH V (YHU\ERG\ SUHVHQW
NQHZ LW E\ KHDUW :KHQ ZH ZHUH WR LQDXJXUDWH WKH PXVHXP , ZDV SXW
WRJHWKHU ZLWK WKH ILUVW RQHV WR HQWHU ² D VPDOO JURXS RI KLJKUDQNLQJ /HyQ
6DQGLQLVWDV ZKR DOO VHHP WR KDYH EDFNJURXQGV IURP KLJKHU HGXFDWLRQ
$V ZH HQWHUHG , UHDOL]HG WKDW ZKDW ZH ZHUH VHHLQJ ZDV D FDPSDLJQ WKDW
IRUPHG DQ H[WUDRUGLQDULO\ SURPLQHQW SDUW RI WKH OLIH RI PRVW RI WKRVH , ZDV
ZLWK 7KH VWRULHV SUHVHQWHG LQ WKH PXVHXP ZHUH DERXW LQGLYLGXDO H[SHUL
HQFHV RI \RXQJVWHUV DFWLQJ DV WHDFKHUV DQG KRZ WKH\ LQGLYLGXDOO\ GHFLGHG
WR SDUWLFLSDWH LQ WKH FDPSDLJQ LQ  ,Q VRPH FDVHV WKH \RXQJVWHUV SDU
WLFLSDWHG LQ WKH SURJUDP DJDLQVW WKHLU SDUHQWV· ZLOO LQ RWKHU FDVHV WKH\
VHHP WR KDYH KDG WKHLU SDUHQWV· DSSURYDO QHYHUWKHOHVV LW ZDV WKH SDUWLFL
SDQW·V RZQ GHFLVLRQ WR HQWHU WKH SURJUDP 0RVW VWRULHV WDON DERXW WKLQJV
WKDW ZHUH XQUHODWHG WR WKHLU WHDFKLQJ REOLJDWLRQV WKDW WKH \RXQJVWHUV
OHDUQHG RQ WKHLU WULS ,W ZDV TXLWH FOHDU WKLV ZDV D JHQHUDWLRQDO PRYH
PHQW RI 1LFDUDJXDQV ZKR DFWHG UDWKHU LQGHSHQGHQWO\ RI WKHLU SDUHQWV DQG
JUDQGSDUHQWV
7KH VLWXDWLRQ IRU WRGD\·V \RXWKV LV TXLWH GLIIHUHQW 3DUHQWV QRZ VHHP
PXFK PRUH SUHRFFXSLHG ZLWK WKH VDIHW\ RI WKHLU FKLOGUHQ FRPSDUHG WR WKH
VWRULHV IURP WKH VV ,W LV QRZ WKH SDUHQW JHQHUDWLRQ WKDW HQFRXUDJHV
WKH \RXWKV WR GR DV WKH\ GLG DQG JR RXW LQWR WKH FRXQWU\VLGH WR WHDFK IRU
D ZKLOH 7KLV LV GHFLGHGO\ GLIIHUHQW IURP KRZ LW ZDV EDFN WKHQ ZKHQ WKH
\RXWKV GLG VRPHWKLQJ QHZ ZKLFK WKHLU SDUHQWV KDG QRW GRQH
7KH PXVHXP VWD\HG DW WKDW VDPH SODFH IRU TXLWH D ZKLOH DQG , GLG
$JH DV D GHILQLQJ IDFWRU 

QRW VHH PDQ\ 1LFDUDJXDQ \RXWKV HQWHU LW ZKR KDG QRW EHHQ VHQW WKHUH E\
WKH VFKRRO $OWKRXJK WKH LGHD EHKLQG LWV FUHDWLRQ OLNHO\ ZDV WR HQFRXUDJH
WRGD\·V \RXWKV WR SDUWLFLSDWH LQ WKH FXUUHQW OLWHUDF\ FDPSDLJQ LW VHHPHG
WR IXQFWLRQ PRVWO\ DV D SODFH RI VHOIFHOHEUDWLRQ IRU WKH ROGHU JHQHUDWLRQ
RI 6DQGLQLVWDV WKDW QRZ UDQ WKH FRXQWU\ *LYHQ WKH IRFXV RQ WKH FDPSDLJQ
RI WKH V LQ HYHU\GD\ GLVFRXUVH , LQLWLDOO\ GLG QRW WKLQN WR TXHVWLRQ
ZKHWKHU WKH FXUUHQW FDPSDLJQ LV WKH VDPH DV WKH RQH LQ WKH V
)LQDOO\ RQH GD\ *HUDUGR $QWRQLR 6DQWDPDULD 5RVDOHV D  \HDU ROG
UDGLR ZRUNHU LQYROYHG ZLWK WKH )6/1 IRU  \HDUV H[SODLQHG WR PH IRU WKH
ILUVW WLPH KRZ WKH ¶YROXQWDU\· SDUWLFLSDWLRQ LQ WKLV SURJUDP LV RUJDQL]HG
XQGHU WKH FXUUHQW JRYHUQPHQW
%HIRUH >GXULQJ WKH WLPH RI QHROLEHUDO JRYHUQPHQWV@ LQ WKH
WK JUDGH RI WKH VHFRQGDU\ >VFKRRO@ VWXGHQWV ZRXOG ZULWH
D ORQJ PRQRJUDSK WKDW QRRQH FDUHG DERXW DQG WKDW HQGHG
XS EHLQJ WKURZQ RQ WKH IORRU 1RZ WKH\ DUH VHQW LQWR WKH
FRXQWU\VLGH WR WKH OHDVW GHYHORSHG ]RQHV RI WKH FRXQWU\ WR
WHDFK RWKHU KRZ WR UHDG DQG ZULWH
,W LV ZLWK WKLV H[SHULHQFH LQ PLQG , VWDUWHG WR LQYHVWLJDWH WKH JHQHUDWLRQDO
JDS DV RQH RI WKH IDFWRUV GLIIHUHQWLDWLQJ 6DQGLQLVWDV 0\ FRQFOXVLRQ LV
WKDW IDPLOLHV QRZ VHHP WR KDYH EHFRPH PRUH RI D XQLW UDWKHU WKDQ DFWLQJ
LQGLYLGXDOO\ LQ PDWWHUV RI SROLWLFV DV DSSHDUV WR KDYH EHHQ WKH FDVH LQ WKH
V DQG V

7KH ODFN RI LGHRORJLFDO PRGHOV DPRQJ \RXQJHU 6DQGLQLVWDV

7KH IDPLO\ RI )RQVHFD ,FDEDO]HWD RQH RI P\ PDLQ LQIRUPDQWV LQ 0DQDJXD
SUHVHQWHG WR PH RQH RI WKH FOHDUHVW H[DPSOHV RI LQQHUIDPLO\ GLIIHUHQFHV
LQ ZKDW LW PHDQV WR EH D 6DQGLQLVWD )RQVHFD ,FDEDO]HWD ZDV LQ KHU ODWH
V DQG D VWXGHQW RI SKLORORJ\ DQG FRPPXQLFDWLRQ DW WKH 8QLYHUVLGDG 1D
FLRQDO $XWyQRPD GH 1LFDUDJXD 81$1  DQG VKH OLYHG LQ D SRRU DQG UDWKHU
GDQJHURXV DUHD RI 0DQDJXD ZLWK KHU SDUHQWV DQG D VLFN JUDQGPRWKHU LQ
D ZRRGHQ KRXVH ZLWK WKH URRI IDOOLQJ RII 1H[W GRRU OLYHG KHU IDWKHU·V
EURWKHU %D\DUGR -RVp )RQVHFD *DOR DQG KLV ZLIH LQ D KRXVH LQ HTXDOO\ VHUL
RXV FRQGLWLRQ $OO IRXU RI WKH SDUHQWV JHQHUDWLRQ ZHUH DFWLYH LQ WKH VWXGHQW
PRYHPHQW RI WKH V ,Q WKH V )RQVHFD ,FDEDO]HWD DQG KHU SDUHQWV
PRYHG WR D VPDOO DQG HYHQ SRRUHU YLOODJH LQ VRXWKHUQ 1LFDUDJXD IRU VRPH
\HDUV DV SDUW RI SROLWLFDO ZRUN IRU WKH SDUW\ $W WKH WLPH KHU PRWKHU &DU
ROLQD ,FDEDOFHWD *DUD\ ZRUNHG DV DQ (QJOLVK DQG KLVWRU\ WHDFKHU DQG KHU
$QD 0LODJUR 0DWDUJR 'LH] DJH  IURP 6RPRWR GHFODUHV VKH LV ´6DQGLQLVWD
E\ EORRGµ +HU HQWLUH IDPLO\ KDV EHHQ 6DQGLQLVWD DQG VR WKDW PDGH DOVR KHU
6DQGLQLVWD 7KLV VHHPV WR EH WKH PRVW FRPPRQ IRUP WR EHFRPH 6DQGLQLVWD
IRU \RXQJHU 1LFDUDJXDQV +DOI D \HDU EHIRUH , WDON WR KHU VKH VWDUWHG EHLQJ
LQYROYHG LQ WKH -XYHQWXG 6DQGLQLVWD -6  6KH EHOLHYHV RQH RI WKH PDLQ REMHF
WLYHV ZLWK KHU LQYROYHPHQW LV WR KHOS \RXQJ SHRSOH OHDYH GUXJ DGGLFWLRQV
6KH KRSHV WKLV ZLOO OHDG WR D ¶EHWWHU· 1LFDUDJXD 6KH VHHV WKH FRQWULEXWLRQ RI
WKH -6 DV LQGLVSHQVDEOH LQ GHYHORSLQJ WKH FRXUVH RI WKH UHYROXWLRQ ´<RXQJ
SHRSOH DUH WKH RQHV ZKR KDYH WR GR UHYROXWLRQV EHFDXVH WKH\ GR QRW IHDU
FKDQJHµ

IDWKHU LQ DQ 1*2 'XULQJ P\ WLPH WKHUH )RQVHFD ,FDEDO]HWD ZRUNHG QRZ

DQG WKHQ DW D NLQGHUJDUWHQ RU VFKRRO EXW ZDV MXVW DV RIWHQ XQHPSOR\HG
+HU SDUHQWV KDYH UHDG D ORW RI WKHRUHWLFDO OLWHUDWXUH EXW QRQH RI WKDW
WULFNOHG GRZQ WR )RQVHFD ,FDEDO]HWD 6KH LV ZHOO DZDUH RI 1LFDUDJXDQ KLV
WRU\ DQG VRPH UHFHQW (XURSHDQ KLVWRU\ 6KH DVVRFLDWHV (DVWHUQ (XURSH
ZLWK YDOXHV RI VROLGDULW\ DQG :HVWHUQ (XURSH ZLWK YDOXHV RI FRPSHWLWLRQ
(YHQ ZLWKRXW KDYLQJ VWXGLHG DQ\ RI WKH WKHRUHWLFDO PRGHOV WKH ROGHU JHQ
HUDWLRQ VHHV DV IXQGDPHQWDO WR 6DQGLQLVPR VKH UHDGLO\ LGHQWLILHV DV D
6DQGLQLVWD 7KH FRPELQDWLRQ RI PXFK NQRZOHGJH RI 1LFDUDJXDQ KLVWRULFDO
HYHQWV EXW OLWWOH NQRZOHGJH RI WKHRUHWLFDO GHEDWHV RQ LGHRORJ\ LV VRPH
WKLQJ IRXQG LQ PDQ\ \RXQJHU 6DQGLQLVWDV 7KH H[SODQDWLRQ JLYHQ E\ PDQ\
6DQGLQLVWDV LV GXH WR D SHULRG GXULQJ WKH \HDUV RI QHROLEHUDOLVP LQ ZKLFK
WKH ROGHU JHQHUDWLRQ NHSW WKH LGHRORJ\ VHFUHW RU GLG DW OHDVW QRW WDON DERXW
LW RSHQO\ 7KLV LQ SDUW VHHPV WR EH D YDOLG UHDVRQ
:KHQ , ILQDOO\ PDQDJHG WR FRQYLQFH )RQVHFD ,FDEDO]HWD DIWHU VHYHUDO
PRQWKV WKDW KHU PRWKHU ZDV LQWHUHVWLQJ HQRXJK WR LQWHUYLHZ WKH PRWKHU


$JH DV D GHILQLQJ IDFWRU 

VWDUWHG RXW E\ H[SODLQLQJ WKH SDUW DERXW KHU VHHLQJ KHUVHOI PRVW RI DOO DV
DQ DQDUFKLVW RU DQDUFKRV\QGLFDOLVW ´$ ZKDW"µ )RQVHFD ,FDEDO]HWD DVNHG
DIWHUZDUG ZKHQ , VXPPHG XS ZKDW KHU PRWKHU KDG VDLG , KDG QRW WKRXJKW
WKLV FRXOG EH VRPHWKLQJ VKH SRVVLEO\ FRXOG QRW KDYH NQRZQ RI EHIRUHKDQG
)URP WKH LQWHUYLHZ LW VHHPHG WR EH D YLWDO SDUW RI KHU PRWKHU·V LGHQWLW\
)RQVHFD ,FDEHO]HWD DVNHG PH VHYHUDO WLPHV DIWHUZDUG ZKDW H[DFWO\ PDNHV
DQ DQDUFKRV\QGLFDOLVW XQWLO , H[SODLQHG LW LQ GHWDLO
,FDEDOFHWD *DUD\ QRWLFHV WKH ODFN RI NQRZOHGJH LQ WKH \RXQJHU JHQ
HUDWLRQ LQ RWKHU DUHDV WKDQ ZKHUH KHU GDXJKWHU ODFNV NQRZOHGJH 6KH
PHQWLRQHG GXULQJ WKH LQWHUYLHZ WKDW DV D KLVWRU\ WHDFKHU VKH QRWLFHG
KRZ PDQ\ RI WKH \RXWKV RI WRGD\ ´FRQIXVH &DUORV )RQVHFD >$PDGRU@ ZLWK
>&DOGHUyQ@ 6DQGLQRµ GXH WR LQVXIILFLHQW NQRZOHGJH 6KH DOVR VDLG VKH ZDV
GHOLJKWHG VRPH QHZ SURJUDPV KDG UHFHQWO\ EHHQ SXW RQ 79 DERXW WKH WLPH
EHIRUH WKH UHYROXWLRQ KRZ OLIH ZDV XQGHU 6RPR]D DQG WKH 6DQGLQLVWD LQVXU
UHFWLRQ RI  6KH FRQWLQXHG WR EH FRQFHUQHG WKHUH ZDV QRW HQRXJK RI
WKDW 6KH H[SODLQHG LW ZRXOG EH HVVHQWLDO WR SXW HPSKDVLV RQ WHDFKLQJ KLV
WRU\ ´,I WKH\ GRQ·W NQRZ DERXW WKHLU SDVW KRZ FDQ WKH\ KDYH D SHUVSHFWLYH
IRU WKH IXWXUH"µ
,FDEDOFHWD *DUD\ EHOLHYHV KHU RZQ GDXJKWHU KDV OLVWHQHG VR PXFK WR
WKH GLVFRXUVH RQ 6DQGLQLVPR LQ KHU SDUHQWV· KRXVH WKDW VKH KDV VWDUWHG
TXHVWLRQLQJ LW ´:HOO JUHDW >WKURXJK WKDW VKH FUHDWHV@ DQRWKHU DOWHUQD
WLYHµ ,FDEDOFHWD *DUD\ WULHG WR VRXQG DFFHSWLQJ RI KHU GDXJKWHUV FRQGXFW

/LWWOH IRFXV RQ WKHRUHWLFDO NQRZOHGJH DPRQJ RUJDQL]HG 6DQGL

QLVWD \RXQJVWHUV
$OWKRXJK )RQVHFD ,FDEHO]HWD LV D 6DQGLQLVWD VKH DWWHQGV QR PHHWLQJV RI
DQ\ VWUXFWXUH RI WKH )6/1 , ZRQGHUHG ZKHWKHU , VKRXOG VSHDN WR VRPH
\RXQJ 6DQGLQLVWDV ZKR GR DWWHQG )6/1 PHHWLQJV
2QH RI WKH IHZ PHPEHUV RI WKH -XYHQWXG 6DQGLQLVWD -6 , PHW PRUH RIWHQ
LV 1LQID 3DWULFLD 5DPRV 5DPRV LV WKH IULHQG RI )RQVHFD ,FDEDO]HWD DQG WKH\
VWXGLHG WRJHWKHU DW WKH 81$1 LQ 0DQDJXD :KLOH )RQVHFD ,FDEDO]HWD ZDV
VWLOO D VWXGHQW GXULQJ P\ HQWLUH VWD\ 5DPRV DOUHDG\ JUDGXDWHG DQG WDXJKW
6SDQLVK DW WKH 81$1 'LIIHUHQW IURP )RQVHFD ,FDEDO]HWD VKH HQJDJHG LQ
VWXGHQW SROLWLFV DQG WKH -6 GXULQJ KHU WLPH DW XQLYHUVLW\ 7KH UHVW RI KHU
IDPLO\ VXSSRUWHG KHU DQG LV DOVR 6DQGLQLVWD EXW VKH VHHPHG WR EH PRUH RI
D GULYLQJ IRUFH LQ WKDW UHVSHFW WKDQ )RQVHFD ,FDEDO]HWD LQ KHU IDPLO\
5DPRV FOHDUO\ EHORQJV WR WKRVH RQ WKH LQVLGH RI WKH 6DQGLQLVWD VWXGHQW
1LQID 3DWULFLD 5DPRV LV VDLG WR KDYH LQVLGH NQRZOHGJH RI WKH -XYHQWXG 6DQGL
QLVWD ZKLFK VKH GRHV QRW DOZD\V VKDUH ZLWK KHU IULHQGV LQ RUGHU WR SURWHFW
WKH SDUW\

PRYHPHQW 7KDW GRHV QRW PHDQ WKDW VKH LV WKHRUHWLFDOO\ PRUH YHUVHG WKDQ
)RQVHFD ,FDEDO]HWD %RWK VHHP WR DJUHH RQ WKLV 7KH GLIIHUHQFH EHWZHHQ
KHU DQG )RQVHFD ,FDEDO]HWD LQ WKHLU UHODWLRQVKLS WR WKH )6/1 FDQ EH QRWHG LQ
WKH DPRXQW RI DFFHVV WKH\ KDYH WR XS WR GDWH LQIRUPDWLRQ RQ VWUDWHJLFWDF
WLFDO PRYHV RI WKH 6DQGLQLVWD FRQWUROOHG 8QLyQ 1DFLRQDO GH (VWXGLDQWHV GH
1LFDUDJXD 81(1 LQ ZKLFK 5DPRV ZDV DFWLYH IRU VHYHUDO \HDUV SULRU WR P\
DUULYDO WR 1LFDUDJXD $W RQH WLPH , DVNHG )RQVHFD ,FDEDO]HWD DERXW FHUWDLQ
VWXGHQWSROLWLFV UHODWHG GLVDJUHHPHQWV ZLWKLQ 6DQGLQLVPR :H TXLFNO\
UHDOL]HG WKDW WKHVH WKLQJV KDG RFFXUUHG ZLWKRXW KHU KHDULQJ DERXW WKHP
,QVWHDG RI EHLQJ DEOH WR DQVZHU PH VKH FRPPHQWHG LQ D IUXVWUDWHG YRLFH
´6RPHWLPHV 1LQID MXVW ZRQ·W WHOO PH DERXW WKLQJV WKDW KDSSHQµ 5DPRV LV
VHOHFWLYH LQ KHU IRUZDUGLQJ RI LQWHUQDO SROLWLFDO GHWDLOV
$URXQG WKH PXQLFLSDO HOHFWLRQV RI 1RYHPEHU  VHH DOVR ³ )6/1
ZRQ ORFDO HOHFWLRQV 1RYHPEHU   S   , VDZ 5DPRV PRUH LQ FRQQHFWLRQ
ZLWK SDUW\ SROLWLFDO HYHQWV VXFK DV RQ HOHFWLRQ QLJKW DW \RXWK HOHFWLRQ KHDG
TXDUWHUV :KHQ , FDPH WR PHW XS ZLWK KHU WKH ILUVW \RXQJVWHU ZKR VDZ
PH GLUHFWHG PH LPPHGLDWHO\ WR PRXQW RQ WKH EDFN RI D SLFNXS WUXFN WR DFW
DV SDUW RI D YLFWRU\ SDUDGH DURXQG 0DQDJXD 0\ FRQQHFWLRQ WR 5DPRV ZDV
OLNHO\ ZKDW SODFHG PH WKHUH 7KH RWKHU \RXQJVWHUV LQ WKRVH GD\V DOO VHHP
UHPDUNDEO\ VLPLODU WR 5DPRV H[WUHPHO\ DFWLYH DQG SUDFWLFDOO\ PLQGHG EXW
QRW SDUWLFXODUO\ VFKRROHG WKHRUHWLFDOO\ ZLWK WKH ERRNV ROGHU 6DQGLQLVWDV
VWXGLHG .DUO +HLQULFK 0DU[ /HQLQ (UQHVWR ¶&KH· *XHYDUD &DUORV )RQVHFD
$PDGRU HWF 


$JH DV D GHILQLQJ IDFWRU 

7HUP UHGHILQLWLRQV
2QH RI WKH PDLQ GLIIHUHQFHV , QRWLFHG EHWZHHQ ROG DQG \RXQJ 6DQGLQLVWDV
ZDV WKH ZD\ WKH\ XVH FHUWDLQ WHUPLQRORJ\ 7KH ROGHU 6DQGLQLVWDV XVH WKH
GHILQLWLRQV RI WKH LQWHUQDWLRQDO UDGLFDO PRYHPHQW VRPHWKLQJ ZKLFK KLQWV
RI WKHLU EHLQJ DZDUH RI WKH VDPH WKHRULHV DV UDGLFDOV JOREDOO\ 7KH \RXQJHU
JHQHUDWLRQ VHHPV WR XVH PRVWO\ VHOIFUHDWHG GHILQLWLRQV ,Q DQ\ VRFLHW\
WKH \RXQJ OHDUQ IURP WKH HOGHU EXW LW VHHPV WKDW WKH 1LFDUDJXDQ FDVH
LV SDUWLFXODU LQ WKDW WKH DEVHQFH RI LGHRORJLFDO VFKRROLQJ DIWHU WKH V
PHDQW WKDW FRQFHSWV UHODWHG WR UHYROXWLRQDU\ DFWLYLW\ DUH XVHG GLIIHUHQWO\
RU DW WLPHV QRW XVHG DW DOO DPRQJ \RXQJHU 6DQGLQLVWDV 7KH RYHUDOO YDOXH
VHHQ LQ VWXG\LQJ LGHRORJ\ DQG XVLQJ DQ LGHRORJLFDO DQDO\VLV RSHQO\ VHHPV
WR KDYH FKDQJHG IRU WKH \RXQJHU JHQHUDWLRQ 7KH OHYHO RI VFKRROLQJ RI
FODVVLF 0DU[LVW WKHRU\ LV QRW DV KLJK DPRQJ \RXQJHU 6DQGLQLVWDV DV DPRQJ
ROGHU 6DQGLQLVWDV VRPH UDGLFDOWKHRUHWLFDO WHUPLQRORJ\ WKDW WKH ROGHU
JHQHUDWLRQ XVHV LV VWLOO XVHG E\ WKH \RXQJHU SHRSOH DOWKRXJK LQ D VOLJKWO\
GLIIHUHQW ZD\ 7KH IDFW WKDW WKH WHUPV DUH XVHG DW DOO E\ \RXQJHU 6DQ
GLQLVWDV DW ILUVW PDNHV LW DSSHDU DV LI QR VXEVWDQWLDO GLIIHUHQFH EHWZHHQ
\RXQJHU DQG ROGHU 6DQGLQLVWDV H[LVWV 7KH GLIIHUHQFH LQ XVDJH SRLQWV WR
KRZ WKH WKHRUHWLFDO XQGHUSLQQLQJV RI VRFLDOLVW LGHRORJ\ XVHG E\ WKH ROGHU
JHQHUDWLRQ KDYH QRW EHHQ WUDQVIHUUHG WR WKH \RXQJHU JHQHUDWLRQ 2I DOO
WKH UDGLFDOUHYROXWLRQDU\ WHUPV , HQFRXQWHUHG ¶YDQJXDUG· DQG ¶WHQGHQF\·
VHHP WR EH WKH RQHV WDNHQ PRVW RXW RI WKHLU RULJLQDO FRQWH[W DQG DV KDYLQJ
DFTXLUHG D QHZ PHDQLQJ 7HUPV VXFK DV ¶DQWLLPSHULDOLVP· ¶VRFLDOLVPR·
DQG ¶FDGUHV· DUH XVHG ZLWKRXW PXFK RI DQ\ GHILQLWLRQ LQ FRPPRQ IRU WKHP
RU RQH WKDW LV VRPHZKDW GLVWDQW IURP WKH LQWHUQDWLRQDO DQG KLVWRULFDO XV
DJH
7KHVH WHUPV ZHUH OLNHO\ LQWURGXFHG LQWR ZLGHVSUHDG XVDJH GXULQJ WKH
V DQG V DW D WLPH ZKHQ WKH 6DQGLQLVWDV DQG WKHLU VWUXJJOH IRUPHG
SDUW RI DQ LQWHUQDWLRQDO DQG WKHRUHWLFDO UDGLFDO GLVFRXUVH 6XEVHTXHQWO\
WKH WHUPV FRQWLQXHG WR EH SDUW RI WKH 6DQGLQLVWD LQWHUQDO GLVFRXUVH WKRXJK
PXFK PRUH GLVFRQQHFWHG IURP WKH LQWHUQDWLRQDO RQH 7KXV WKHVH WHUPV
GHYHORSHG WKHLU RZQ PHDQLQJ

9DQJXDUG

2QH RI WKH PRVW FHQWUDO WHUPV LQ WKLV FRQQHFWLRQ LV ¶YDQJXDUG· 7KH \RXQJ
6DQGLQLVWDV XVH LW MXVW DV PXFK DV WKH ROGHU RQHV EXW WKH\ WHQG WR XVH LW
LQ RWKHU VHWWLQJV :LWK WLPH LW EHFDPH FOHDUHU WR PH WKDW IRU \RXQJHU
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

6DQGLQLVWDV LW FDQ EH XVHG TXLWH LQGHSHQGHQWO\ IURP WKH FRQWH[W LQ ZKLFK

LW ZDV RULJLQDOO\ HPSOR\HG
7KH WHUP RULJLQDOO\ LV NQRZQ IRU LWV XVDJH E\ /HQLQ DQG GHVLJQDWHG D
VHFWLRQ RI WKH SRSXODWLRQ WKDW ZRXOG OHDG LQWHOOHFWXDOO\ DQG KDG D FHUWDLQ
LQVLJKW LQWR WKH ZRUNLQJ RI VRFLHW\ ZKLFK WKH PDMRULW\ RI WKH SRSXODWLRQ
ODFNHG /HQLQ  FKDSWHU  VHH DOVR ³ 7KH )6/1 VWUXFWXUH S   ,Q WKH
V PHPEHUVKLS LQ WKH )6/1 ZDV VWULFWO\ FRQWUROOHG DQG RQO\ DYDLODEOH WR
D VPDOO HOLWH 8QGHU WKHVH FLUFXPVWDQFHV WKH WHUP ¶YDQJXDUG· ZDV XVHG E\
6DQGLQLVWD OHDGHUV WR UHIHU WR WKHPVHOYHV %RUJH 0DUWtQH] XVHG LW GXULQJ D
VSHHFK DGGUHVVLQJ WKH VHFRQG DQQLYHUVDU\ FHOHEUDWLRQ RI WKH UHYROXWLRQ
OLNH WKLV
«)RU WKLV UHDVRQ DOO WKH HIIRUWV RI WKRVH ERUQ LQ 1LFDUDJXD
EXW QRZ ZDQW WR JR EDFN WR WKH SDVW «ZLOO IDLO 7KH\ ZLOO QHYHU
EH DEOH WR VHSDUDWH WKH SHRSOH IURP WKHLU YDQJXDUG %RUJH
0DUWtQH]  
7KH YDQJXDUG DV XVHG E\ 7RPiV %RUJH 0DUWtQH] DQG WKH 6DQGLQLVWDV RI KLV
JHQHUDWLRQ LV FOHDUO\ D VHSDUDWH HQWLW\ WKDQ ¶WKH SHRSOH· %RUJH EHOLHYHV
LW LV FORVH EXW LW LV FOHDUO\ QRW WKH VDPH WKLQJ 7KH ZD\ PDQ\ \RXQJ
6DQGLQLVWDV XVH LW WRGD\ JLYHV LW D PHDQLQJ RI DOO WKRVH RUJDQL]HG ZLWK WKH
)6/1 LQGHSHQGHQWO\ RI ZKHWKHU WKH\ DFW VWULFWO\ LQ SROLWLFDO ZRUNV QRW
FRQVLGHULQJ PHPEHUVKLS LQ WKH -6 DQG WKH )6/1 DUH QR ORQJHU UHVWULFWHG
WR D KDQGIXO RI VHOHFWHG SHRSOH (ULFN 6DXO 5LRV -XDUH] DQG KLV IULHQGV IURP
WKH -6 ZKR UXQ D UDGLR VKRZ VHH DOVR ³ 3RZHU WKURXJK LQILOWUDWLRQ S 
XVH WKH WHUP ¶YDQJXDUG· WR GHVFULEH WKHPVHOYHV DQG WKH HQWLUH -6 RQ DLU
DQG ZKHQ GLVFXVVLQJ ZLWK PH ,W LV QRW DOZD\V LQ WKH SROLWLFDO VHQVH :KHQ
, DVNHG ZK\ WKH -6 KDG WR SDUWLFLSDWH LQ WKH FHOHEUDWLRQV RI WKH &DWKROLF
KROLGD\ 6DQWR 'RPLQJR LW ZDV H[SODLQHG ´%HFDXVH ZH DUH WKH YDQJXDUGµ
:KHQ , DVNHG KLP WR GHILQH WKH WHUP 5LRV -XDUH] H[SODLQHG LW WKLV ZD\
7KH YDQJXDUG LW·V WR EH LQ WKH ILUVW OLQH DW WKH KRXU RI FRPEDW
WR EH DZDNH DW DQ\ PRPHQW LW LV WR EH SUHSDUHG IRU WKH QHZ
UHVSRQVLELOLWLHV 7KH FRPEDWDQW FDQ EH LQ DQ\ RI WKH IURQWV
LQ WKH FXOWXUDO LQ WKH FRPPXQLFDWLYH LQ VSRUWV HWF
:KHQ , LQVWHDG DVNHG D IHPDOH IULHQG RI 5LRV -XDUH] ZKR LV DERXW  \HDUV
ROGHU WKDQ KLP VKH H[SODLQHG LW WR PH DV
,W FDQ PHDQ WZR WKLQJV ,Q WKH UHYROXWLRQDU\ VWUXJJOH LW LV
HVVHQWLDO DOZD\V WR EH DKHDG ZKDW WKH HQHP\ GRHV 7KH HQ
(ULFN 6DXO 5LRV -XDUH] KDV EHHQ LQYROYHG LQ 6DQGLQLVWD SROLWLFV VLQFH WKH DJH
RI HLJKW E\ EULQJLQJ IRRG WR 6DQGLQLVWDV ZRUNLQJ GXULQJ HOHFWLRQV $W DJH 
KH ´VWDUWHG ZRUNLQJ  RQ D GDLO\ EDVLV ZLWKLQ WKH -XYHQWXG 6DQGLQLVWDµ
+H DQG KLV IHOORZ DFWLYLVWV GHVFULEH WKHPVHOYHV DV WKH ¶YDQJXDUG·

HP\ FDQ EH WKH 8QLWHG 6WDWHV RU WKH SROLWLFDO ULJKW« ,W LV DOVR

D OLWHUDU\ PRYHPHQW , WKLQN DURXQG WKH HQG RI WKH V
EHJLQQLQJ RI WKH V ² KHUH LQ 1LFDUDJXD LW ZDV GRQH E\
VRPH ROLJDUFKV LQ WKH FLW\ RI *UDQDGD« )RU WKH 6DQGLQLVWDV LW
DOVR PHDQV WR EH DOHUW WR EH LQ IURQW WR EH WKH EHVW VWXGHQW
HWF

$OWKRXJK ERWK RI WKHP XVH WKH WHUP WKH\ VHHP WR KDYH GHYHORSHG WKHLU
RZQ GHILQLWLRQV IRU LW WKDW GR QRW DOZD\V PDWFK XS 5LRV -XDUH]·V IULHQG
H[SHULHQFHG WKH V DV D FKLOG DQG FODLPHG KHU XVDJH RULJLQDWHV IURP
WKDW SHULRG $ERXW WKH GHILQLWLRQ 5LRV -XDUH] JDYH PH VKH VDLG

2K \HV LW·V EHFDXVH WKH &KD\R >5RVDULR@ 0XULOOR> WKH ZLIH RI

2UWHJD 6DDYHGUD@ LV XVLQJ WKH WHUP DJDLQ 6R WKDW·V ZK\ (ULFN
UHSHDWV LW

, WULHG WR ILQG ZKHUH HLWKHU 5RVDULR 0XULOOR RU 2UWHJD 6DDYHGUD XVHG WKLV
WHUP LQ DQRWKHU VHQVH WKDQ WKH RULJLQDO RQH EXW ZDV QRW DEOH WR ILQG LW 5LRV
-XDUH]·V ROGHU IULHQG LV DW WLPHV D ELW DQQR\HG E\ KLP IRU YDULRXV SHUVRQDO
UHDVRQV VR VRPH RI KHU FRPPHQW UHJDUGLQJ 5LRV -XDUH]·V XVDJH RI WKH WHUP
PD\ KDYH EHHQ ELDVHG ,W LV IDVFLQDWLQJ WR QRWH WKDW VKH EHOLHYHV WKDW WKH
WHUP ZDV XVHG PDLQO\ LQ WKH V DQG WKHQ DJDLQ FXUUHQWO\ 7KLV VHHPV
OLNH D SUREDEOH GHYHORSPHQW RI WKH DPRXQW WKH XVDJH RI WKH WHUP


7ZR JURXSV RI 6DQGLQLVWD VWXGHQWV ILJKW RYHU WKH DGPLQLVWUDWLRQ EXLOGLQJ RI
WKH 8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD²/HyQ $ VWXGHQW ZKR ILJKWV
ZLWK WKH JURXS IURP /HyQ ZKR DUH DWWDFNLQJ LQ WKLV SKRWR WHOOV PH WKDW WKH
0DQDJXD VWXGHQWV ZKR DUH LQ WKH EXLOGLQJ DUH ´WHUURULVW VWXGHQWVµ 9DULRXV
6DQGLQLVWD JURXSV EODPH RQHDQRWKHU IRU WKH HYHQW 7KH 6RPRFLVWDV RI /HyQ
DUH PRVWO\ FRQFHUQHG DERXW WKH GRRU WKDW LV EHLQJ DWWDFNHG KHUH EHFDXVH
WKH EXLOGLQJ ZDV EXLOW GXULQJ WKH JRYHUQPHQW RI $QDVWDVLR 6RPR]D 'HED\OH

7HQGHQF\

$W DQRWKHU SRLQW WKHUH ZDV GLVDJUHHPHQW RQ VWUDWHJ\ EHWZHHQ RQH RI

WKH ORQJWLPH QDWLRQDO OHDGHUV RI WKH ELJJHVW VWXGHQW XQLRQV &pVDU 3pUH]
RI WKH 81(1 DQG VRPH RI WKH OHDGLQJ ILJXUHV RI WKH &HQWUR 8QLYHUVLWDULR
GH OD 8QLYHUVLGDG 1DFLRQDO²/HyQ &881²/HyQ  $OVR WKH &881²/HyQ LV LQ
IRUPDOO\ 6DQGLQLVWD FRQWUROOHG ,W VWDUWHG GXULQJ WKH HOHFWLRQ FDPSDLJQ
RI 1RYHPEHU  VHH DOVR ³ )6/1 ZRQ ORFDO HOHFWLRQV 1RYHPEHU   S
  , ZDV QRW SUHVHQW ZKHQ LW KDSSHQHG EXW ZDV WROG LW VWDUWHG RXW ZLWK
VRPH 81(1 VWXGHQWV WKURZLQJ IOLHUV LQWR OHFWXUH URRPV DW WKH 8QLYHUVLGDG
&HQWURDPHULFDQD 8&$ LQ 0DQDJXD ZKHQ WKH\ GHFLGHG QRW WR DOORZ WKH
81(1 VWXGHQWV WR GLVWULEXWH WKHLU PDWHULDO RQ FDPSXV 3pUH] DQQRXQFHG
KH ZDQWHG WR ¶WDNH· WKH XQLYHUVLW\ ZKLFK LV WKH PRVW SURPLQHQW SULYDWHO\
RZQHG XQLYHUVLW\ WKDW UHFHLYHV SXEOLF IXQGLQJ RI WKH VDPH  RI WKH 1L
FDUDJXDQ EXGJHW WKDW LV GHVLJQDWHG IRU VWXGHQWV DQG ZKLFK LV WKH VRXUFH
RI LQFRPH RI DOO SXEOLF XQLYHUVLWLHV DQG WXUQ LW LQWR D SXEOLF LQVWLWXWLRQ
+H DQG KLV JURXS VKRZHG XS ZLWK PRUWDUV RQFH DQG SURPLVHG WR EH EDFN
SK\VLFDOO\ WR WDNH FRQWURO RYHU WKH XQLYHUVLW\ FDPSXV DW D ODWHU GDWH :LWK
WKDW DQQRXQFHPHQW DOO HYHQLQJ FODVVHV ZHUH FDQFHOHG IRU D IHZ PRQWKV
DQG VWULFWHU HQWUDQFH FRQWURO ZHUH HPSOR\HG WR HQVXUH RQO\ 8&$ VWXGHQWV


)RU VRPH RI WKH \RXQJHU 6DQGLQLVWDV WKH VKRRWLQJ RI ILUHFUDFNHU ZLWK PRU
WDUV VHHPV WR EH DQ LQWHJUDO SDUW RI DQ\ 6DQGLQLVWD HYHQW

ZHUH SHUPLWWHG DFFHVV 0DQ\ RI P\ 0DQDJXD EDVHG 6DQGLQLVWD LQIRUPDQWV

ZHUH VWURQJO\ DJDLQVW WKH DFWLRQV RI 3pUH] EHFDXVH WKH\ IHOW KH KDG WUHDWHG
WKH 8&$ XQIDLUO\ $GGLWLRQDOO\ WKH\ IHOW KH ZDV QRW VHUYLQJ WKH 6DQGLQLVWD
FDXVH 6LPXOWDQHRXVO\ KH ZDV FULWLFL]HG E\ OHDGLQJ ILJXUHV RI WKH &881
/HyQ IRU WKH VDPH UHDVRQV 7KH FRQIOLFW FXOPLQDWHG DERXW D KDOI \HDU ODWHU
LQ D SK\VLFDO FRQIURQWDWLRQ EHWZHHQ &881/HyQ DQG 81(1 DW WKH 8QLYHU
VLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD²/HyQ 81$1²/HyQ  7KH 8&$ ZDV
RIILFLDOO\ QRW SDUW RI WKH FRQIOLFW ,W ZDV WKH QDWLRQDO OHDGHUVKLS RI WKH
81(1 ZKLFK GHFLGHG WR RFFXS\ WKH FHQWUDO EXLOGLQJ RI WKH 81$1²/HyQ
DV D SURWHVW DJDLQVW WKH EXGJHW RI WKDW XQLYHUVLW\ SUHVHQWHG WKDW GD\ )RU
PDOO\ DOO WKRVH ZKR DUH PHPEHUV RI WKH &881/HyQ DUH DOVR PHPEHUV
RI WKH 81(1 DW D QDWLRQDO OHYHO EXW WKH LQGLYLGXDO VWXGHQWV , LQWHUYLHZHG
GHILQHG WKHPVHOYHV DV EHLQJ SDUW RI RQH RI WKH WZR , ZDV DW WKH XQLYHUVLW\
DQG ZDWFKHG DV &881/HyQ DIILOLDWHG VWXGHQWV WULHG WR HQWHU WKH DOUHDG\
RFFXSLHG EXLOGLQJ DQG FKDVH RXW WKH 81(1 VWXGHQWV ZKR WUDYHOHG WR /HyQ
IURP 0DQDJXD

$W WKLV SRLQW QRRQH VHHPHG WR WU\ WR GHILQH WKH GLIIHUHQFH DV EHLQJ

EDVHG RQ GLIIHUHQW LGHRORJLFDO OLQHV 7KH 81(1 DIILOLDWHG VWXGHQWV IURP
0DQDJXD FODLPHG WKH\ ZHUH WDNLQJ FRQWURO RI WKH EXLOGLQJ DV D SURWHVW
DJDLQVW WKH DQQXDO XQLYHUVLW\ EXGJHW 7KH &881/HyQ VWXGHQWV FRPSODLQHG
WKDW WKH\ KDG QRW LQIRUPHG DQG WKDW WKHLU DXWKRULW\ ZDV EHLQJ XQGHUPLQHG
7KH\ DWWDFNHG 3pUH] IRU KDYLQJ VWD\HG LQ RIILFH IRU WRR ORQJ WLPH ,W ZDV
TXLWH FOHDU DW WKLV VWDJH WKDW WKLV ZDV QRWKLQJ PRUH WKDQ UHWDOLDWLRQ DJDLQVW


 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

WKH &881/HyQ VWDWHPHQWV DV FRQFHUQHG WKH 8&$

:KHQ VWXGHQWV H[SODLQHG WKH FRQIOLFW WR PH WKH\ XVHG WKH ODQJXDJH
RI WKH LQWHUQDO LGHRORJLFDO VWUXJJOHV RI WKH )6/1 LQ WKH V DQG PRVW
VSHFLILFDOO\ WKH ZRUG ¶WHQGHQF\· VHH DOVR ³ 7KH )6/1 GLYLGHG LQWR WKUHH WHQ
GHQFLHV S   5DPRV WROG PH TXLWH SODLQO\ ´7KH\ DUH GLIIHUHQW WHQGHQFLHVµ
ZKHQ , DVNHG DERXW WKH FRQIOLFW 7KH VWXGHQWV DURXQG 5LRV -XDUH] DQG WKH
-6 ZKR D IHZ PRQWKV ODWHU FDPH LQWR FRQIOLFW ZLWK 3pUH] H[SODLQHG LW WKH
VDPH ZD\ 7KLV GRHV QRW VHHP WR VWDQG LQ FRQWUDVW IRU WKHP ZLWK SHUVRQDO
FDUHHU EDVHG FRQIOLFWV )RQVHFD ,FDEDO]HWD WROG PH ZKLOH 5DPRV OLVWHQHG
DQG QRGGHG DSSURYLQJO\

+H >&pVDU@ MXVW ZDQWV WR VKRZ WKDW KH FDQ PRYH WKH SHRSOH VR

WKDW 2UWHJD >6DDYHGUD@ PDNHV KLP D PHPEHU RI WKH QDWLRQDO
DVVHPEO\

:KHQ , DVNHG 5DPRV ZKDW VKH PHDQW E\ WKH WHUP ¶WHQGHQF\· VKH H[SODLQHG
KHU XVDJH LQ GHWDLO

7KH\ DUH GLIIHUHQW VXEJURXSV 7KHUH LV RQH JURXS WKDW >5HLQDOGR

*UHJRULR@ /HQtQ &HUQD >-XiUH]@ PDQDJHV %D\DUGR $UFH PDQ
DJHV DQRWKHU RQH $ WKLUG RQH LV UXQ E\ WKH &KD\R >5RVDULR
0XULOOR@ $OO EHOLHYH LQ 'DQLHO 1HYHUWKHOHVV HDFK KDYH WKHLU
RZQ HFRQRPLFDO DQG SROLWLFDO LQWHUHVWV )RU H[DPSOH /HQLQ
&HUQD ZDQWV WR UXQ WKH 81(1 DQG WKH -XYHQWXG 6DQGLQLVWD
/DWHU RQ WKH\ ZLOO VHUYH WKHP DV WKHLU VKRFN WURRSV 7KH
PRUH SHRSOH \RX PDQDJH DQG WKH PRUH SHRSOH WKDW QRWLFH
\RX WKH PRUH SRZHU DQG VXSSRUW \RX ZLOO KDYH $W WKH VDPH
WLPH WKH\ DOO KDYH VRPHWKLQJ LQ FRPPRQ 'DQLHO XQLWHV
WKHP

, WKHQ DVNHG 5DPRV KRZ WKHVH QHZ WHQGHQFLHV ZHUH GLIIHUHQW IURP WKRVH
EHIRUH  6KH UHSOLHG
 5HLQDOGR *UHJRULR /HQtQ &HUQD -XiUH] LV NQRZQ IRU KLV UROH ZLWKLQ WKH VHFUHW SROLFH
LQ WKH V DQG LV E\ PDQ\ ULJKWZLQJ FULWLFV WRGD\ VHHQ DV VRPHRQH ZKR VHFUHWO\ FRQWUROV
2UWHJD 6DDYHGUD DQG WXUQV 1LFDUDJXD LQWR D FRPPXQLVW VWDWH
 %D\DUGR $UFH LV D ORQJWLPH 6DQGLQLVWD DQG HFRQRPLF DGYLVHU RI WKH 2UWHJD 6DDYHGUD
JRYHUQPHQW
 :RQGHULQJ ZKHWKHU , PLVXQGHUVWRRG DQG ZKHWKHU WKH )6/1 ZRUNV VRPHZKDW PRUH
KLHUDUFKLFDO WKDQ ZKDW , KDG WKRXJKW , DVNHG ZKHWKHU DOO WKHVH JURXSV RI \RXQJ 6DQGLQLVWDV
WKHQ RQO\ DFW ZKHQ WKH\ UHFHLYH RUGHUV E\ SHRSOH OLNH %D\DUGR $UFH 5DPRV GHQLHG WKLV LQ
WKH FDVH RI WKH FRQIOLFWV , VDZ ´1R $W WLPHV WKH\ MXVW DFW RQ WKHLU RZQµ
&DUROLQD )RQVHFD ,FDEDO]HWD RQH RI P\ PDLQ \RXQJHU 6DQGLQLVWD LQIRUPDQWV
PRVWO\ PHW PH DW WKH VKRSSLQJ FHQWHU 0HWURFHQWUR LQ 0DQDJXD ,Q WKH V
VHYHUDO ODUJHU VKRSSLQJ FHQWHUV ZHUH RSHQHG LQ 0DQDJXD 7KH\ KDYH VLQFH
VHUYHG DV VRPH RI WKH PDLQ PHHWLQJ SRLQWV IRU 0DQDJXDQV 0RVW YLVLWRUV
MXVW VWDQG DURXQG DV SULFHV DUH KLJK

:HOO IRU QRZ , VHQVH WKDW DOO 6DQGLQLVWDV VHH RXUVHOYHV OLNH
RQH JLJDQWLF IDPLO\ 7KH GLVWLQFWLRQV DUH QRW DV ODUJH DV WKH\
RQFH ZHUH :LWKLQ WKH )6/1 RQH DOUHDG\ NQRZV ZKR LV LQ
FKDUJH EHFDXVH 'DQLHO XQLWHV WKH 6DQGLQLVWD IDPLO\ ,GHRORJL
FDOO\ WKHUH LV QR GLIIHUHQFH WKH LGHRORJ\ LV QRZ WKH VDPH

¶6HULRXVQHVV· DQG DFFHSWDQFH RI \RXQJHU 6DQGLQLVWDV

2QH GLIIHUHQFH EHWZHHQ \RXQJHU DQG ROGHU 6DQGLQLVWDV UHODWHV WR WKH OHYHO
RI WKHRUHWLFDO VFKRROLQJ DQG WKH ZD\ WKH\ H[SUHVV WKHPVHOYHV 7KH \RXQJHU
JHQHUDWLRQ RI 6DQGLQLVWDV UDUHO\ VSHDN SRVLWLYHO\ DERXW WKH 2UWHJD 6DDYH
GUD JRYHUQPHQW 0DQ\ WLPHV GXULQJ ILUVW HQFRXQWHUV ZLWK \RXQJHU 1LFDUD
JXDQV , PLVWRRN WKHLU FRQVWDQW FULWLFLVP RU ULGLFXOH RI FXUUHQW JRYHUQPHQW
SROLFLHV DV RSSRVLWLRQ WR 6DQGLQLVPR :KHQ , DVNHG WKHP ZKHWKHU WKH\ VHH
WKHPVHOYHV DV /LEHUDOV , ZDV RIWHQ VXUSULVHG WR ILQG WKH\ ZRXOG QHYHU FRQ
VLGHU YRWLQJ DQ\WKLQJ RWKHU WKDQ )6/1 )RQVHFD ,FDEDO]HWD RQFH H[SODLQHG
WKH FRQIOLFW ZLWK KHU SDUHQWV· JHQHUDWLRQ RQ WKLV PDWWHU

7KH\ MXVW GRQ·W XQGHUVWDQG WKDW ZKHQ RQH PDNHV D MRNH DERXW
'DQLHO >2UWHJD 6DDYHGUD@ RU KLV ZLIH LW GRHVQ·W PHDQ WKDW RQH
LV DJDLQVW WKH UHYROXWLRQ 7KH\ DUH MXVW VR PXFK PRUH VHULRXV


 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

DERXW HYHU\WKLQJ

2QH RI WKH PRVW VHULRXV 6DQGLQLVWDV , PHW LV )RQVHFD *DOR ,FDEDOFHWD *DUD\
GHFLGHG WR LQWURGXFH PH WR KLP DIWHU , ILQLVKHG LQWHUYLHZLQJ KHU )RQVHFD
*DOR ZDV XQHPSOR\HG DW WLPHV EXW VSHQW PRVW RI KLV WLPH DW DQ LQVWLWXWH IRU
VRFLDO UHVHDUFK RI WKH 81$1 ZLWK ZKLFK KH ZDV ORRVHO\ DIILOLDWHG +LV ZLIH
ZRUNHG IRU WKH )6/1 PD\RU RI 0DQDJXD·V RIILFH +H VDZ KLV RZQ DFWLRQV
DV UHODWLQJ WR 0DU[LVW WKHRU\ PRUH WKDQ DQ\ RI WKH IDPLO\ PHPEHUV +H
GHVFULEHG KLPVHOI DV D /HQLQLVW 7KLV ZDV DQRWKHU IDFW )RQVHFD ,FDEDO]HWD
ZDV XQDZDUH RI XQWLO , WROG KHU DERXW LW )RQVHFD *DOR LV RQH RI WKH ILUVW
6DQGLQLVWDV , PHW ZKR PDGH DQ H[SOLFLW GLVWLQFWLRQ EHWZHHQ KLPVHOI DQG
RWKHU SHRSOH ZKR IRXJKW LQ WKH LQVXUUHFWLRQ  DQG WKRVH ZKR MXVW FDOOHG
WKHPVHOYHV 6DQGLQLVWD ZLWKRXW HYHU KDYLQJ DQ\ SRVLWLRQ RI LPSRUWDQFH
ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW +H VDLG WKH IROORZLQJ DIWHU , WROG KLP
WKDW , ZDQWHG WR VWXG\ ¶WKH 6DQGLQLVWDV· WRGD\

:HOO \HDK EXW WKHUH DUH SHRSOH ZKR DUH MXVW 6DQGLQLVWDV EH
FDXVH WKDW·V KRZ WKH\ IHHO $QG WKHUH DUH WKRVH RI XV ZKR
KDYH IRXJKW IRU WKLV

$OWKRXJK KH ZDV RQH RI H[WUHPHO\ IHZ SHRSOH ZKR PDGH WKH GLVWLQFWLRQ
H[SOLFLWO\ , QRWLFHG WKDW WZR GLVWLQFW ZD\V H[LVW RI XQGHUVWDQGLQJ WKH WHUP
¶6DQGLQLVWD·

‡ 7KRVH ZKR KDYH QRW IRXJKW LQ WKH UHYROXWLRQ DQG DUH \RXQJHU GH
ILQH EHLQJ D 6DQGLQLVWD DV VRPHWKLQJ RQH FDQ FKRRVH WR EH LI RQH
JHQHUDOO\ DJUHHV ZLWK VRPH SULQFLSOHV (YHQ WKRXJK WKLV GHILQLWLRQ
FOHDUO\ LV EDVHG DURXQG LQGLYLGXDO FKRLFH WKH YDVW PDMRULW\ FKRRVH
WKH VDPH DV WKHLU SDUHQWV

‡ 0DQ\ RI WKRVH ZKR IRXJKW LQ WKH UHYROXWLRQ RU KHOG QRWHZRUWK\

SRVWV LQ WKH V RU KDYH WKHP FXUUHQWO\ VHH RQO\ WKHPVHOYHV DV
WKH 6DQGLQLVWDV DQG WKH JHQHUDO 6DQGLQLVWDSRVLWLYH SRSXODWLRQ DV
WKHLU VXSSRUW EDVH

)URP WKH PDQ\ GLIIHUHQW VLWXDWLRQV , KDYH KHDUG WKH WHUP ¶6DQGLQLVWD· XVHG
WKH FRPPRQ GHQRPLQDWRU VHHPV WR EH WKDW D 6DQGLQLVWD LV D VRFLDOO\ FRQ
VFLRXV DFWRU ZKR OHDGV DQG DIIHFWV VRFLHW\ )RQVHFD *DOR WKHQ LQYLWHG PH
WR LQWHUYLHZ KLV FRPUDGHV IURP  DQG SUHVHQWHG PH ZLWK KLV OLVW RI 
FRPEDWDQWV ZKR OLYHG VSUHDG RXW WKURXJK WKH FRXQWU\ )RQVHFD ,FDEDO]HWD
$JH DV D GHILQLQJ IDFWRU 

ZDV TXLWH HPEDUUDVVHG E\ KHU XQFOH DQG WKLV SURMHFW RI GRFXPHQWLQJ KLV
IHOORZ FRPEDWDQWV DIWHUZDUG ´, DP VR VRUU\ P\ XQFOH LV XVLQJ \RX OLNH
WKLVµ VKH WROG WR PH DIWHU , KDG VSHQW WLPH WDONLQJ WR )RQVHFD *DOR·V FRP
UDGHV LQ WKH FLW\ RI 0DQDJXD , KDG WR H[SODLQ PDQ\ WLPHV WKDW SDUW RI
ZKDW , ZDQWHG WR GR LQ 1LFDUDJXD ZDV WR WDON WR WKHVH NLQGV RI SHRSOH )RU
PDQ\ IURP )RQVHFD ,FDEDO]HWD·V JHQHUDWLRQ ZKR GHILQH WKHPVHOYHV DV 6DQ
GLQLVWDV LW VHHPV HPEDUUDVVLQJ WR WDON WRR PXFK DQG WRR VHULRXVO\ DERXW
WKH UHYROXWLRQ RU 6DQGLQLVWD SROLWLFV
7KH UHODWLRQVKLS EHWZHHQ )RQVHFD ,FDEDO]HWD KHU SDUHQWV DQG KHU
XQFOHV DQG DXQWV VHHPV WR EH UDWKHU W\SLFDO RI PDQ\ 6DQGLQLVWDV , PHW $OO
PHPEHUV RI D IDPLO\ FDOO WKHPVHOYHV 6DQGLQLVWDV EXW WKHUH LV D PDUNHG
GLIIHUHQFH EHWZHHQ WKH JHQHUDWLRQ WKDW SDUWLFLSDWHG LQ WKH LQVXUUHFWLRQ
DQG WKH RQH WKDW GLG QRW 1RW DOO 6DQGLQLVWDV KDYH D EDFNJURXQG LQ KLJKHU
HGXFDWLRQ DQG WKDW PD\ KDYH PDGH WKH GLIIHUHQFH LQ NQRZOHGJH DERXW
WKHRU\ REYLRXV ,W LV QRWDEOH WKDW RIWHQWLPHV WKH ROGHU JHQHUDWLRQ VHHPV
LQWHUHVWHG LQ WHDFKLQJ WKH \RXQJHU JHQHUDWLRQ DERXW WKHRU\ DQG FRQVLGHUV
WKDW LPSRUWDQW )RU VRPH UHDVRQ KRZHYHU WKH\ KDYH QRW HQJDJHG LQ
GRLQJ MXVW WKDW ,W PD\ EH VSHFXODWHG WKDW WKLV LV UHODWHG WR WKH  \HDUV RI
QHROLEHUDOLVP GXULQJ ZKLFK ROGHU 6DQGLQLVWDV GLG QRW VHH WKH VDPH YDOXH
LQ WHDFKLQJ DERXW WKRVH WKLQJV )RQVHFD ,FDEDO]HWD DQG KHU SHHUV SURSRVHG
VLPLODU WKHRULHV ZKHQ , DVNHG WKHP DERXW WKH JDS

&XUUHQW VWXGLHV RI SROLWLFDO WKHRU\

,W WRRN PH D ORQJ WLPH WR ILQG RUJDQL]HG \RXQJVWHUV ZKR DOVR KDYH VRPH LQ
WHUHVW LQ SROLWLFDO WKHRULHV 7KDW KDV WR GR ZLWK WKH WUDLQLQJ DQG RUJDQL]LQJ
RI 6DQGLQLVWD \RXQJVWHUV ZKLFK IRU WKH PRVW SDUW GLG QRW VWDUW EHIRUH 
:KHQ , DVNHG DERXW ZKDW VFKRROLQJ H[LVWHG DW WKH ORFDO KHDGTXDUWHUV LQ
/HyQ LQ WKH VXPPHU  , ZDV VHQW WR WKH VPDOO OHFWXUH VHULHV DUUDQJHG LQ
FRRSHUDWLRQ ZLWK WKH 81$1²/HyQ , DWWHQGHG VRPH RI WKHVH OHFWXUHV EXW
IRXQG WKHP H[FHHGLQJO\ EURDG DQG DLPHG DW VWXGHQWV LQ JHQHUDO UDWKHU
WKDQ VSHFLILFDOO\ DW HGXFDWLQJ \RXQJ 6DQGLQLVWDV )RU PRVW RI P\ ILUVW \HDU
LQ 1LFDUDJXD , PHW PHPEHUV RI WKH -6 ZKHQ JRLQJ IURP /HyQ WR 0DQDJXD
RQ D EXV KHDGHG WR VRPH GHPRQVWUDWLRQ 1RQH RI WKHP VHHPHG WR EH RI WKH
W\SH ZKR LV LQWHUHVWHG LQ SROLWLFDO WKHRU\ ,W ZDV QRW EHIRUH WKH ODVW WZR
PRQWKV RI P\ VWD\ WKDW , FDPH LQWR FRQWDFW ZLWK PHPEHUV RI WKH -6 ZKR
KDG UHFHLYHG VRPH IXQGDPHQWDO WUDLQLQJ LQ SROLWLFDO WKHRULHV 7KLV ZDV
 \HDUV LQWR WKH SUHVLGHQF\ RI 2UWHJD 6DDYHGUD DQG D OLPLWHG DPRXQW RI
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

VFKRROLQJ LQ SROLWLFDO WKHRULHV RQ D QDWLRQDO OHYHO KDG EHHQ RUJDQL]HG

7KH WHDFKLQJ LQFOXGHG ERWK WKHRUHWLFDO DQG SUDFWLFDO HOHPHQWV 7KRVH
WHDFKLQJ WKH SUDFWLFDO DVSHFWV ZHUH SDLG WKURXJK GLIIHUHQW LQVWLWXWLRQV
QRW QHFHVVDULO\ KDYH DQ\WKLQJ WR GR ZLWK WKH 6DQGLQLVWD VWUXJJOH EXW ZKR
JRW XWLOL]HG WR WHDFK WKHRU\ , PHW D WHDP RI 0H[LFDQ DQG 6SDQLVK PHGLD
HGXFDWRUV ZKR WDXJKW SHRSOH IURP WKH QDWLRQDO OHDGHUVKLS RI WKH -6 ZKR
VSHFLDOL]H GLQ MRXUQDOLVP KRZ WR SHUIRUP PHGLD FRYHUDJH 7KH HGXFDWRUV
ZHUH SDLG WKURXJK D IXQG DVVRFLDWHG ZLWK WKH 8QLWHG 1DWLRQV DQG WROG PH
WKH SRLQW RI WKHLU SURJUDP ZDV WR WHDFK \RXQJVWHU ZKR PD\ JHW LQYROYHG
LQ VWUHHW YLROHQFH KRZ WR H[SUHVV WKHLU UDJH WKURXJK WKH PHGLD 7KH\
XQGHUVWRRG WKDW WKH JURXS WKH\ ZRUNHG ZLWK ZDV SROLWLFDO EXW LW GLG QRW
VHHP WKH\ VDZ WKDW WKHLU WUDLQLQJ ZDV PHDQW WR IXUWKHU WKH UHYROXWLRQDU\
FDXVH ´, ZLOO WHDFK WKHP KRZ WR GR REMHFWLYH MRXUQDOLVPµ D 0H[LFDQ WROG
PH ´WKHVH \RXQJVWHUV KHUH DOO VHHP H[WUHPHO\ SROLWLFDO DQG WKDW LV QRW
WKH EHVW ZD\ RI GRLQJ JRRG MRXUQDOLVPµ
,Q WKH V WKHRUHWLFDO VFKRROLQJ H[LVWHG DOO RYHU WKH FRXQWU\ ,W ZDV
PXFK VPDOOHU DW WKH WLPH ZKHQ , OHIW LQ  WKH RQO\ WHDFKLQJ IDFLOLWLHV
ZHUH LQ 0DQDJXD $GGLWLRQDOO\ RQO\ WKRVH DW WKH XSSHU OHDGHUVKLS DW D
QDWLRQDO OHYHO SDUWLFLSDWHG

3URIHVVLRQDOV DQG 6DQGLQLVPR

%HVLGHV JHQHUDWLRQDO DJH JURXSLQJ DQRWKHU GHFLVLYH IDFWRU WKDW VHHPV
WR FKDQJH KRZ D 6DQGLQLVWD H[SUHVVHV KLPVHOI WKDW ZDV QRWLFHDEOH WR PH
DPRQJ P\ LQIRUPDQWV LV ZKHWKHU WKH SHUVRQ ZRUNV DV D SURIHVVLRQDO LH D
SHUVRQ ZLWK D XQLYHUVLW\ GHJUHH ZKR ZRUNV ZLWKLQ KLV ILHOG RI VWXG\ RU RQH
FORVHO\ UHODWHG 0RVW SURIHVVLRQDOV DW KLJK OHYHOV VHHP WR ZRUN LQ 0DQDJXD
DQG RIWHQWLPHV WKH\ KDYH WR ZRUN TXLWH FORVHO\ ZLWK JRYHUQPHQW HQWLWLHV
:KHQ GHDOLQJ ZLWK ERWK \RXQJ SURIHVVLRQDOV LQ WKH 1LFDUDJXDQ IUHH
VRIWZDUH PRYHPHQW WKH 1*2 6HUYLFLR GH ,QIRUPDFLyQ 0HVRDPHULFDQR VREUH
$JULFXOWXUD 6RVWHQLEOH 6,0$6  RU VLPLODU JURXSV WKDW PDGH XS VRFLDO VSDFHV
WKH FRRSHUDWLRQ ZLWK WKH 6DQGLQLVWDV LV FRPPXQLFDWHG LQ D PXFK PRUH
VXEWOH ZD\ WKDQ DYHUDJH ,Q P\ H[SHULHQFH LQ 0DQDJXD 6DQGLQLVWDV RI
DOO NLQGV DUH PXFK PRUH RSHQO\ FULWLFDO WRZDUGV WKH 2UWHJD 6DDYHGUD JRY
HUQPHQW WKDQ LQ /HyQ $PRQJ SURIHVVLRQDOV WKHLU DOOHJLDQFH ZLWK WKH
6DQGLQLVWDV LV FRPPXQLFDWHG LQ DQ HYHQ OHVV GLUHFW IRUP 1RW VSHDNLQJ
DERXW SROLWLFDO DIILOLDWLRQ RU VD\LQJ ´, DP QRW YHU\ SROLWLFDOµ LQ 1LFDUDJXDQ
VRFLHW\ PHDQV WKDW RQH DVVRFLDWHV ZLWK WKH /LEHUDOV , DVVXPHG WKH VDPH
3URIHVVLRQDOV DQG 6DQGLQLVPR 

ZKHQ , ILUVW HQWHUHG LQWR FRQWDFW ZLWK SURIHVVLRQDOV ZRUNLQJ LQ WKH 1LFD
UDJXDQ FDSLWDO DV WKH\ GLG QRW VSHQG DV PXFK WLPH WDONLQJ DERXW WKHLU
SROLWLFDO DIILOLDWLRQ DV PRVW 1LFDUDJXDQV GR $IWHU D ZKLOH , OHDUQHG KRZ
6DQGLQLVWD DIILOLDWLRQV ZLWKLQ WKHVH FLUFOHV DUH FRPPXQLFDWHG GLIIHUHQWO\
7KH DYHUDJH 6DQGLQLVWD ZLOO XVXDOO\ VD\ VRPHWKLQJ OLNH WKLV ZKHQ DVNHG
DERXW ZKDW SROLWLFDO SDUW\ LV PRVW OLNHO\ WR GHYHORS WKH FRXQWU\

2QO\ ZH WKH 6DQGLQLVWDV DUH EXLOGLQJ WKLV FRXQWU\ ,Q WKH

V ZH VHQW VWXGHQWV WR VWXG\ WR WKH 6RYLHW 8QLRQ WR WKH
''5 >'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLF *HUPDQ 'HPRFUDWLF 5H
SXEOLF@ DQG WR &XED 1RZ ZH EXLOG URDGV KDYH HQGHG WKH
SRZHU RXWDJHV DQG WHDFK WKH SRRU KRZ WR UHDG DQG ZULWH
>+HDUG DW D 6DQGLQLVWD FHOHEUDWLRQ DIWHU HOHFWRUDO YLFWRU\ LQ
/HyQ )DOO @

, KHDUG VLPLODU VWDWHPHQWV PDQ\ WLPHV E\ 6DQGLQLVWDV 7KH SHUVRQ XWWHULQJ

WKHP GRHV QRW QHHG WR KDYH EHHQ LQYROYHG LQ DQ\ RI WKH DFWLRQV PHQWLRQHG
RU LQ DQ\ IXUWKHU ZD\ EH DVVRFLDWHG ZLWK WKH )6/1 0DQ\ WLPHV WKH VWDWH
PHQW LV DXJPHQWHG E\ D ORQJ OLVW RI FXUUHQW SURJUDPV WKH 2UWHJD 6DDYHGUD
JRYHUQPHQW LV LPSOHPHQWLQJ RU KDV DQQRXQFHG DV VWDUWLQJ LQ WKH QHDU
IXWXUH
$V D FRQWUDVW ZKHQ , DVNHG RQH RI )RQVHFD *DOR·V ZRUN FROOHDJXHV
)UHGG\ (QULTXH 4XH]DGD 3LFDGR ZKR )RQVHFD *DOR KDG SUHVHQWHG WR PH DV
D 6DQGLQLVWD FRPSDxHUR DQG LQVXUUHFWLRQLVW ILJKWHU DQG ZKR DOVR DJUHHG
WR EH LQWHUYLHZHG DV VXFK ZKHWKHU DOO SDUWLHV ZHUH HTXDOO\ LQWHUHVWHG LQ
WKH VRFLDO GHYHORSPHQW SURMHFWV KLV RUJDQL]DWLRQ GHYHORSHG , UHFHLYHG WKH
IROORZLQJ DQVZHU

7KH SDUWLHV RI WKH ULJKW WKHLU GRLQJV DUH SDUWLGDULDQ

«7KHUH LV QR« , GR QRW DQ\ZKHUH VHH WKDW WKHUH DUH SURSR
VLWLRQV RI GHYHORSPHQW SURSRVLWLRQV RI SURGXFWLRQ LQ WKH
FRPPXQLWLHV $OO WKH\ DUH ORRNLQJ IRU LV YRWHV 7KH DFWLYLW\
RI GHYHORSPHQW , VHH DV RQO\ FRPLQJ IURP WKH JRYHUQPHQW
IURP WKH SDUW\ RI WKH JRYHUQPHQW
, GRQ·W VHH DQ\ LQLWLDWLYH RI WKRVH SROLWLFDO SDUWLHV >RQ
WKH SROLWLFDO ULJKW@ WRZDUGV VRFLDO RU HFRQRPLF GHYHORSPHQW
7KHUH DUH PHPEHUV RI WKH QDWLRQDO DVVHPEO\« $OO WKH PHP
EHUV RI WKH QDWLRQDO DVVHPEO\ KDYH D SDUW >RI WKHLU EXGJHW@
DVVLJQHG WR DGYHUWLVH WKHLU LPDJH 7KH\ GLVWULEXWH WKDW WR
)UHGG\ (QULTXH 4XH]DGD 3LFDGR ZRUNV DV D SURIHVVLRQDO DQG LV SUHVHQWHG
WR PH DV D 6DQGLQLVWD /LNH PDQ\ SURIHVVLRQDO 6DQGLQLVWDV 4XH]DGD 3LFDGR
LV QRW DV GLUHFW DV RWKHU 6DQGLQLVWDV ZKHQ H[SUHVVLQJ KLV VXSSRUW IRU WKH
SROLFLHV RI WKH FXUUHQW JRYHUQPHQW

VRFLDO DFWLYLWLHV ULJKW" $V D SDUW« DV D SROLWLFDO SDUW\ , GR

KRZHYHU QRW VHH LW

4XH]DGD 3LFDGR VKRZHG MXVW DV PXFK DV DQ\ RWKHU )6/1 6DQGLQLVWD WKDW
KH IDYRUHG WKH )6/1 DQG KH KDG QRWKLQJ SOHDVDQW WR VD\ DERXW DQ\ RI
WKH RWKHU SDUWLHV +H MXVW XWWHUHG KLV YLHZV LQ D PRUH KLGGHQ RU VXEWOH
IDVKLRQ +H HYHQ DYRLGHG FDOOLQJ DQ\ RI WKH SROLWLFDO SDUWLHV E\ WKHLU QDPH
RU WR PHQWLRQ DQ\ FRQFUHWH DFWLRQ RU SURJUDP RI DQ\ SUHVHQW RU IRUPHU
JRYHUQPHQW WKH ZD\ LW LV XVXDOO\ GRQH LQ 1LFDUDJXD 7KLV ZD\ 4XH]DGD
3LFDGR VSRNH , IRXQG WR EH PRUH FRPPRQ ZLWKLQ SURIHVVLRQDO FLUFOHV
7KURXJK WKH /LQX[ JURXS RI 0DQDJXD WR ZKLFK , PDLQWDLQHG FRQWDFW
WKURXJK PRVW RI P\ WLPH LQ 1LFDUDJXD , OHDUQHG WKDW 4XH]DGD 3LFDGR LV
QRW MXVW D SDUWLFXODUO\ VWUDQJH FDVH 2Q WKH HYHQLQJ RI WKH ILUVW /LQX[ FRQ
IHUHQFH , DWWHQGHG EHWZHHQ WKH GLIIHUHQW /LQX[ JURXSV LQ 0DQDJXD , ZDV
LQYLWHG WR JR GULQN ZLWK VRPH RI WKH FRUH RUJDQL]HUV RI WKH /LQX[ HYHQWV
LQ 0DQDJXD 'XULQJ WKH HQWLUH GD\ QR PHQWLRQ RI SDUW\ SROLWLFV ZDV PDGH
HYHQ WKRXJK VHYHUDO VWUDWHJLHV UHODWHG WR KRZ RQH FRXOG LQIOXHQFH JRYHUQ
PHQW SROLWLFV WR XVH PRUH IUHH VRIWZDUH ZHUH SUHVHQWHG DQG GLVFXVVHG ,
ZDV WUDQVSRUWHG WR WKH KRPH ZKHUH ZH ZHUH WR GULQN LQ WKH FDU RI WKH
RQO\ &RVWD 5LFDQ SDUWLFLSDQW RI WKH JURXS $W RQH SRLQW ZH ZHUH DORQH LQ


3URIHVVLRQDOV DQG 6DQGLQLVPR 

WKH FDU DQG ZH GLVFXVVHG KRZ LW ZDV VWUDQJH WKDW QRRQH KDG PHQWLRQHG
SDUW\ SROLWLFV DOO GD\ ORQJ :H ERWK JXHVVHG ZKHUH WKH 1LFDUDJXDQV DUH
VLWXDWHG SROLWLFDOO\ ² KH JXHVVHG 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056
DQG $OLDQ]D /LEHUDO 1LFDUDJHQVH $/1  DQG , JXHVVHG 056 /DWHU WKDW QLJKW
ZKHQ HYHU\ERG\ ZDV PRUH RU OHVV GUXQN VRPHRQH ILQDOO\ EURXJKW WKH TXHV
WLRQ RI SROLWLFDO DIILOLDWLRQ XS 7KH TXHVWLRQ DV LW ZDV RULJLQDOO\ SKUDVHG
ZDV ´:KR KHUH GRHV QRW EHORQJ WR WKH 6DQGLQLVWD PRYHPHQW"µ 7KH &RVWD
5LFDQ UHIRUPXODWHG LW TXLFNO\ ´:K\ QRW PDNH LW HDVLHU ¶:KDW SDUW\ GLG
\RX YRWH IRU"· "µ 7KH UHVXOW ZDV WKDW DPRQJ WKH ² SURJUDPPHUV
SUHVHQW WKHUH ZDV QRRQH ZKR FODLPHG QRW WR KDYH YRWHG HLWKHU IRU WKH
)6/1 RU WKH 056 7KLV KDSSHQHG LQ ODWH VSULQJ  ZKHQ WKH QDWLRQDO
QHZV ZHUH PRVWO\ DERXW 056 OHDGHUV DQG DFWLYLVWV FODLPLQJ WKH )6/1 ZDV
WU\LQJ WR HVWDEOLVK D GLFWDWRUVKLS 7KH SURJUDPPHUV LQVWHDG WULHG WR HP
SKDVL]H WKH FRPPRQ 6DQGLQLVWD WUDGLWLRQ WKDW OLHV LQ ERWK SDUWLHV 7KH
LQLWLDO SKUDVLQJ RI WKH TXHVWLRQ PD\ ZHOO KDYH EHHQ DQ H[SUHVVLRQ RI WKDW
)RU RYHU D \HDU WKH LPDJH , GHYHORSHG RI WKHVH \RXQJ SURIHVVLRQDOV
GLG QRW FKDQJH IXQGDPHQWDOO\ LQ FKDUDFWHU 6RPH RI WKH SURJUDPPHUV
VWDUWHG D JURXS EORJ FDOOHG %DUULFDGDFRPQL QDPHG DIWHU WKH IRUPHU )6/1
SDUW\ QHZVSDSHU /D %DUULFDGD VHH DOVR ³ 7KH )6/1 DV DQ RSSRVLWLRQ IRUFH S
  ,W XVHG WKH UHGDQGEODFN ORJR RI WKH SDSHU $OPRVW DOO RI WKHP VDLG
WKH\ KDG QRWKLQJ WR GR ZLWK WKH RULJLQDO SDSHU 7KH H[FHSWLRQ ZDV RQH
FRQWULEXWRU ZKR ZDV DOVR KHDYLO\ FRQWULEXWLQJ FRPPHQWV RQ ERWK 1LFDUD
JXDQ QHZVSDSHU VLWHV DQG WKH IRUHLJQ ODQJXDJH VLWHV UHODWHG WR 1LFDUDJXD
+H ZDV VLQJXODUO\ DQWL)6/1 DQG PXFK LQ IDYRU RI DQ\WKLQJ RWKHU WKDQ WKH
)6/1 $OO FRQWULEXWRUV VHHPHG WR EH FULWLFDO RI WKH JRYHUQPHQWV GRLQJV
EXW DOVR LQ VXSSRUW RI PRVW RI LWV FKLHI LGHRORJLFDO OLQHV 7R WKLV GD\ LW LV
WR P\ NQRZOHGJH WKH RQO\ LQGHSHQGHQW 6SDQLVKODQJXDJH VLWH IRU GLVFXV
VLRQ RI SROLWLFV LQ 1LFDUDJXD 7KH KLGLQJ RI LGHRORJLFDO DIILOLDWLRQ ZLWK WKH
6DQGLQLVWD FDXVH PD\ KDYH WR GR ZLWK WKH SRVLWLRQ RI SURIHVVLRQDOV GXULQJ
WKH  \HDUV RI QHROLEHUDOLVP 7KH DQWKURSRORJLVW /XQGJUHQ  VWXG
LHG WKLV DQG GHVFULEHG KRZ PDQ\ RI WKRVH HGXFDWHG GXULQJ WKH 6DQGLQLVWD
\HDUV WULHG WR KLGH WKHLU 6DQGLQLVWD SDVW LQ WKH V 7KH VWDWH QHHGHG
WKH VHUYLFH RI WKHVH SURIHVVLRQDOV DQG DV ORQJ DV RQH GLG QRW RSHQO\ VKRZ
6DQGLQLVWD V\PSDWKLHV GXULQJ WKRVH \HDUV PDQ\ FRXOG FRQWLQXH WR ZRUN
ZLWKLQ WKHLU ILHOG 4XH]DGD 3LFDGR FRQILUPHG WKDW WKH VWLJPD RI EHLQJ D
6DQGLQLVWD ZDV QRW H[DFWO\ KHOSIXO GXULQJ WKRVH \HDUV ,W GRHV KRZHYHU
QRW IXOO\ H[SODLQ ZK\ WKHUH LV D UHVLVWDQFH WR WKH XVDJH RI GLUHFW 6DQGLQLVWD
UKHWRULF HYHQ WRGD\ ZLWK DOO VWDWH LQVWLWXWLRQV DOOHJHGO\ WDNHQ RYHU E\ WKH
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

)6/1
,Q WKH IROORZLQJ H[DPSOH ZH VHH KRZ DW WLPHV WKH W\SLFDO 6DQGLQLVWD
UKHWRULFV DUH VHHQ DV PLVSODFHG ZKHQ WKH\ DUH XWWHUHG LQ D SURIHVVLRQDO
VHWWLQJ HYHQ WKRXJK WKRVH DUH GRPLQDWHG E\ 6DQGLQLVWDV 6KRUWO\ DIWHU
, ZDV KLUHG WR KHOS FUHDWH D QHZ LQIRUPDWLRQ V\VWHP IRU WKH PLQLVWU\ RI
DJULFXOWXUH WKURXJK 6,0$6 'HQLV &iUFHUHV DQG , ZHQW WR WKH PLQLVWU\ RI
DJULFXOWXUH WR KHDU DERXW WKHLU ZLVKHV DQG SUHVHQW RXU SODQ IRU WKH V\VWHP
, WKRXJKW RI KRZ WR SUHVHQW RXU SODQV DQG WR PDNH LW XQGHUVWRRG WR WKH
PLQLVWU\ WKDW ZH ZDQWHG WR FUHDWH D V\VWHP WR WKHLU DGYDQWDJH , FRQVLG
HUHG ZKDW VSLQ , VKRXOG JLYH WR P\ SUHVHQWDWLRQ DQG WRRN WKH IROORZLQJ
WZR PDLQ IDFWRUV LQWR DFFRXQW &iUFHUHV ZKR RULJLQDOO\ LQLWLDWHG FRQWDFW
ZLWK PH LV RQH RI WKH DGPLQLVWUDWRUV RI ?iiT,ff#``B+/X+QKXMB D
)DFHERRNJURXS PHPEHU RI WKH YDULRXV 6DQGLQLVWD JURXSV DQG LQ HYHU\
RWKHU VHQVH D VXSSRUWHU RI WKH 6DQGLQLVWD LGHRORJ\ 6HFRQG WKH FULWLFLVP RI
1LFDUDJXDQ SXEOLF LQVWLWXWLRQV E\ /LEHUDOV LV PRVWO\ WKDW WKH 6DQGLQLVWDV LQ
VHUW WKHLU SHRSOH WR FRQWURO WKHP DQG PDNH WKRVH ZKR DOUHDG\ ZRUN WKHUH
SDUWLFLSDWH LQ YDULRXV 6DQGLQLVWD DUUDQJHPHQWV &RQVLGHULQJ DOO WKHVH IDF
WRUV , GHFLGHG WR DUJXH IRU WKH SURJUDPPLQJ RI D QHZ LQIRUPDWLRQ V\VWHP
DOWRJHWKHU FRQWUROOHG E\ 1LFDUDJXD , XVHG DOO WKH 6DQGLQLVWD ZD\V RI VD\
LQJ WKLQJV ZLWK ZKLFK , KDG JURZQ IDPLOLDU RQ WKH VWUHHWV RI /HyQ , DUJXHG
WKDW LQ RUGHU WR EXLOG D VHOIVXVWDLQLQJ FRXQWU\ ZLWKRXW DQ\ LQWHUIHUHQFH
IURP WKH GRPLQDQW LPSHULDOLVW SRZHUV LW ZDV QHFHVVDU\ WR FUHDWH D V\VWHP
ZKLFK FRXOG EH SURJUDPPHG RQ DQG H[WHQGHG E\ 1LFDUDJXDQV $IWHU WKH
PHHWLQJ &iFHUHV SXOOHG PH DVLGH DQG WROG PH

<RX NQRZ \RX FDQQRW XVH WKDW ODQJXDJH HYHU\ZKHUH DURXQG

KHUH 7KLV WLPH LW ZDV RND\ EHFDXVH ZH NQRZ ZKHUH WKH\
VWDQG >SROLWLFDOO\@ EXW VRPH /LEHUDOV DOVR ZRUN KHUH DQG WKH\
DUH QRW VXSSRVHG WR KHDU WKDW

, ZDV VXUSULVHG DQG DVNHG &iFHUHV LQ WKH IXWXUH WR ZDUQ PH ZKHQ /LEHUDOV
ZHUH SUHVHQW LQ WKH URRP WR DYRLG DQ\ VXFK SUREOHPV $W WKH YDULRXV
PHHWLQJV RYHU WKH QH[W HLJKW PRQWKV ZLWK GLIIHUHQW SDUWV RI WKH PLQLVWU\ ,
OHDUQHG WKH ZRUG ¶6DQGLQLVWD· ZDV DOPRVW QHYHU VDLG GLUHFWO\ LQ WKLV JURXS
RI SURIHVVLRQDOV $W EHVW WKH FKLHI RI 6,0$6 )DOJXQL *XKDUD\ D ELRORJLVW
IURP ,QGLD ZKR FDPH WR 1LFDUDJXD LQ WKH V DV SDUW RI WKH VROLGDULW\
PRYHPHQW DQG WUXO\ SUR)6/1 LQYRNHG UHIHUHQFHV WR WKH FXUUHQW )6/1
MRNLQJO\ 7KDW KDSSHQHG ZKHQ KH GLG WKLQJV VXFK DV WHOOLQJ D ODG\ DW
WKH FRXQWHU DW WKH HQWUDQFH RI D JRYHUQPHQW EXLOG ´, OLNH WKH FRORU RI
0HPEHUV RI WKH 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056 IUHTXHQWO\ FRPSDUH
3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD ZLWK WKH 6RPR]D GLFWDWRUV DV SDUW RI
WKHLU SURWHVWV DJDLQVW WKH JRYHUQPHQW

\RXU VKLUWµ ZKHQ VKH ZRUH D VKLUW LQ WKH SLQNFRORU ZKLFK WKH FXUUHQW
JRYHUQPHQW XVHV DQG ZKLFK LV KDWHG E\ D ODUJH SDUW RI 6DQGLQLVWDV ZKR
SUHIHU WKH FODVVLF UHGDQGEODFN RI WKH V $QG KH VWDUWHG PHHWLQJV
E\ VD\LQJ WKLQJV VXFK DV ´7KLV V\VWHP ZH SURJUDP LV VLWXDWHG LQ WKH
6RYLHW 8QLRQµ EHFDXVH WKH GRPDLQ QDPH ZH XVH IRU LW LV ?iiT,ffK`tXbm
7KHVH W\SHV RI FRPLFDOO\ PHDQW FRPPHQWV , RQO\ KHDUG IURP *XKDUD\
$QG WKH\ ZHUH ODXJKHG DW $GXOW 1LFDUDJXDQV GR QRW XVXDOO\ HPSOR\ VXFK
KXPRU DQG \RXQJHU 1LFDUDJXDQV VXFK DV VWXGHQWV NHHS LW WR WKHPVHOYHV

056 6DQGLQLVPR
$ WKLUG FULWLFDO GLVWLQFWLRQ EHWZHHQ 6DQGLQLVWD LQIRUPDQWV VHHPV WR EH
ZKHWKHU WKH\ DUH )6/1 RU 056 DIILOLDWHG 7KH 056 LV D SDUW\ VWDUWHG LQ
 E\ )6/1 GLVVLGHQWV 7KLV SDUW\ LV PXFK EHWWHU DW FRPPXQLFDWLQJ
WKHLU YLHZV WR ZHVWHUQ PHGLD DOWKRXJK WKH\ DUH PXFK VPDOOHU WKDQ WKH
)6/1  YHUVXV  LQ WKH HOHFWLRQV RI   DQG WKHLU RXWUHDFK LV PDLQO\
OLPLWHG WR SURIHVVLRQDOV DQG XQLYHUVLW\ VWXGHQWV *LYHQ WKDW WKLV WDUJHW
JURXS LV UDWKHU OLPLWHG LQ VL]H LW OLPLWV WKH DPRXQW WKH 056 FRXOG JURZ
7KH PHPEHUV RI WKH 056 DOVR FODLP WR EH 6DQGLQLVWDV DQG RIWHQ VSHDN
DERXW WKHLU SDUW\ UHSUHVHQWLQJ WKH ¶UHDO· 6DQGLQLVPR $W RWKHU WLPHV WKH\
WDON DERXW WKRVH FRQQHFWHG WR WKH )6/1 DV WKH 6DQGLQLVWDV DQG WKHPVHOYHV
DV VRPHWKLQJ HOVH $PRQJ LWV PHPEHUV DUH VRPH IRUPHU FRPDQGDQWHV RI


7KH 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 056 SURWHVW LQ IURQW RI WKHLU RZQ FLW\
KHDGTXDUWHUV DW D WLPH ZKHQ WKH\ FODLP WR OHDG LQ RSLQLRQ SROOV LQ /HyQ
GXULQJ VXPPHU 

WKH )6/1 DQG ZKHQ WKH\ VWDUWHG WKH SDUW\ WKH\ ZHUH DEOH WR UHFUXLW WKH
PDMRULW\ RI 6DQGLQLVWD PHPEHUV RI SDUOLDPHQW VR IRU D VKRUW ZKLOH WKH\
KDG PRUH VHDWV LQ SDUOLDPHQW WKDQ WKH )6/1
)RU WKH PRVW SDUW , WULHG WR VHHN RXW )6/1 6DQGLQLVWDV DQG GXULQJ
PRVW RI P\ WLPH LQ 1LFDUDJXD PRVW RI P\ LQIRUPDQWV EHORQJHG WR WKDW WHQ
GHQF\ :KHQ , DUULYHG WKH SROLWLFDO SDUW\ 056 ZDV LQ WKH SURFHVV RI ORVLQJ
WKHLU ULJKW WR SDUWLFLSDWH LQ WKH  PXQLFLSDO HOHFWLRQV DQG DUUDQJHG
YDULRXV PDUFKHV LQ 0DQDJXD D KXQJHU VWULNH DQG RQFH RSHQO\ FRQIURQWHG
VWXGHQWV DW WKH 81$1²/HyQ 7KH HYHQWV GRPLQDWHG WKH FRYHUDJH RI 1LFD
UDJXD LQ WKH LQWHUQDWLRQDO QHZV PHGLD 'XULQJ WKDW SHULRG , PDLQWDLQHG
FORVHU FRQWDFW WR WKH 056 RIILFH LQ /HyQ VHH DOVR ³ 7KH 056 SURWHVWV 0D\ ²
1RYHPEHU   S  WKDQ WR WKH )6/1
$OWKRXJK , NQHZ WKH SHUFHQWDJHV LQ WKH HOHFWLRQV LQ  , GLG QRW
LQLWLDOO\ XQGHUVWDQG TXLWH ZKHUH LQ WKH VRFLRHFRQRPLF VSHFWUXP WKHLU
PHPEHUV ZHUH ORFDWHG DQG ZKDW SRWHQWLDO IRU JURZWK WKH\ KDG 7KH\
JDYH D FOHDUO\ IDOVH LPSUHVVLRQ RI SROO QXPEHUV ´/DWHVW SROO VKRZV WKDW
RXU FDQGLGDWH KDV RYHU  VXSSRUW KHUH LQ /HyQµ  DQG WKH\ H[DJJHUDWHG
WKH ´RSSUHVVLRQµ E\ WKH )6/1 $W RQH WLPH , ZDV WROG WKH EHDQV JLYHQ
RXW FKHDS WKURXJK WKH JRYHUQPHQW FRQWUROOHG (PSUHVD 1LFDUDJHQVH GH
$OLPHQWRV %iVLFRV (1$%$6 ZRXOG RQO\ EH DYDLODEOH WR )6/1 V\PSDWKL]HUV
, ZDV HYHQ WROG WKDW , ZRXOG EH DEOH WR YHULI\ WKLV HDVLO\ E\ JRLQJ WR WKH
YLOODJH RI 7HOLFD MXVW RXWVLGH RI /HyQ 8SRQ FORVHU LQVSHFWLRQ RI WKH VLWH
LQ 7HOLFD , UHDOL]HG WKLV ZDV QRW WUXH :KHQ PHHWLQJ ZLWK WKH ORFDO 056


056 6DQGLQLVPR 

OHDGHU LQ 7HOLFD , ZDV WROG ´2K QR HYHU\ERG\ FDQ JHW LW EXW WKH EHDQV DUH
MXVW YHU\ KDUGµ
, KDG WDNHQ LW DV D JLYHQ WKDW HDFK SROLWLFDO SDUW\ IRXJKW IRU D PDMRULW\
RI YRWHV LQ WKH SRSXODU HOHFWLRQV 1RW EHIRUH , LQWHUYLHZHG ,FDEDOFHWD *DUD\
VRPH PRQWKV LQWR P\ VWD\ GLG , UHDOL]H WKDW LW PD\ QRW EH WKDW VLPSOH
'XULQJ WKH LQWHUYLHZ ,FDEDOFHWD *DUD\ ZDV TXLWH FULWLFDO RI WKH )6/1 DQG
VHHPHG WR DJUHH PXFK ZLWK WKH RIILFLDO SDUW\ OLQH RI WKH 056 :KHQ ,
ILQDOO\ DVNHG KHU ZK\ VKH GLG QRW VZLWFK WR WKH 056 VKH H[SODLQHG KHU
YLHZ WKDW WKHUH DUH GLIIHUHQW FRQFHSWV RI SDUWLHV LQ 1LFDUDJXD

7KH 056 LV D SDUW\ WKDW KDV GULIWHG WR WKH ULJKW 7KH\ GRQ·W
GHIHQG WKH SRSXODU PDVVHV 7KH\ DUH FRQYLQFHG WKH\ DUH WKH
LQWHOOLJHQWVLD DQG WKDW WKH LQWHOOLJHQWVLD VKRXOG EH LQ FKDUJH
9HU\ 3ODWROLNH EXW IRU PH 3ODWR QHYHU ZDV WKH EHVW SKLORVR
SKHU

, LQLWLDOO\ PLVXQGHUVWRRG WKH QDWXUH RI WKH GLVDJUHHPHQW ZLWK WKH )6/1

%\ WKH 056 LW ZDV DOZD\V SUHVHQWHG DV DQ LGHRORJLFDO VWUXJJOH LQ ZKLFK
WKH )6/1 KDG OHIW EHKLQG LWV ROG URRWV DQG QRZ RQO\ WKH 056 UHSUHVHQWHG
WKH ¶WUXH· FDXVH 7KH HYHU UHFXUULQJ SURRI ZDV WKH LVVXH RI ¶WKHUDSHXWLF
DERUWLRQ· DERUWLRQ LQ FDVH WKH PRWKHU·V OLIH LV LQ GDQJHU ZKLFK ZDV UH
PRYHG VKRUWO\ EHIRUH WKH  HOHFWLRQV 7KH 056 KDG EHHQ WKH RQO\ SDUW\
LQ SDUOLDPHQW ZKR KDG EHHQ LQ IDYRU RI NHHSLQJ WKH ULJKW LQ SODFH 8SRQ
FORVHU LQVSHFWLRQ WKH SLFWXUH WXUQHG RXW WR EH TXLWH GLIIHUHQW VHH DOVR ³
7KHUDSHXWLF DERUWLRQ S  
7KH PDUFKHV RUJDQL]HG E\ WKH 056 LQ  ZKLFK WKH\ PDUNHWHG WR
IRUHLJQHUV DV EHLQJ DERXW WKH RQO\ SDUW\ LQ IDYRU RI D ULJKW WR DERUWLRQ EHLQJ
IRUELGGHQ LQ UHDOLW\ JDWKHUHG QRW RQO\ 056 V\PSDWKL]HUV EXW HYHU\RQH
ZKR KHOG DQ\ JUXGJH DJDLQVW WKH )6/1 , XQGHUVWRRG DIWHU D ZKLOH WKDW
DOWKRXJK SROLWLFDO GHPRQVWUDWLRQV LQ 1LFDUDJXD DUH DOZD\V KHOG XQGHU WKH
SUHWHQVH RI EHLQJ DERXW VRPH FRQFUHWH SROLWLFDO LVVXH LQ WKH HQG WKH\ DUH LQ
UHDOLW\ DERXW )6/1 6DQGLQLVWDV YV WKH /LEHUDOV 7KLV ZDV DOVR WKH FDVH WKLV
WLPH ,Q WKLV FDVH WKH /LEHUDOV WKRXJKW LW PDGH VHQVH IRU WKHP WR VXSSRUW
WKH 056 HYHQ WKRXJK WKH /LEHUDO SDUWLHV YRWHG DJDLQVW WKH WKHUDSHXWLF
DERUWLRQ ULJKW WKHPVHOYHV 7KH 056 DFWLYLVWV DW DOO OHYHOV NQHZ WKLV DQG WKH
WKHUDSHXWLF DERUWLRQ LVVXH ZDV RQO\ IRFXVHG XSRQ ZKHQ FRPPXQLFDWLQJ
ZLWK IRUHLJQHUV DQG LQWHUQDWLRQDO PHGLD DV WKH PRVW FUXFLDO LVVXH ,W ZDV
QRW D WKHPH RI WKH PDUFKHV LQ 1LFDUDJXD , QRWLFH RYHU WKH VXPPHU RI 
WKDW PRVW RI WKH PLOLWDQWV RI WKH 056 LQ /HyQ KDG VRPH SHUVRQDO JUXGJH
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

DJDLQVW WKH )6/1 UDWKHU WKDQ DQ LGHRORJLFDO DUJXPHQW DJDLQVW LWV SROLFLHV
, KDG DVVXPHG WKH WZR ZHUH VHSDUDWH LVVXHV DQG WKDW LW ZRXOG EH IURZQHG
XSRQ WR FRPELQH WKH WZR 7KLV EHOLHI ZDV DOVR GXH WR WKH KHDY\ LQIOX[ RI
UDGLFDO DFDGHPLF WHUPLQRORJ\ LQ WKH H[SODQDWRU\ PRGHOV RI VRPH 056
DFWLYLVWV
2QH SURPLQHQW FKDUDFWHU RI WKH 056 GXULQJ WKDW SHULRG ZDV 5RQDOG
9DUJRQ XQLYHUVDOO\ NQRZQ DV ¶WKH +RUVHPDQ· IRU RQH RI KLV FRVWXPHV LQ
ZKLFK KH ULGHV D WR\ KRUVH ZKLOH EHLQJ LQ KLV ODWH V RU HDUO\ V )RU D
ZKLOH LQ  KH DSSHDUHG LQ PDQ\ QHZVSDSHU DUWLFOHV DQG 79 LQWHUYLHZV
LQ UHODWLRQ ZLWK WKH 056 SURWHVWV EHFDXVH KH ZDV WKH RQO\ DGXOW GRLQJ
VWUHHW WKHDWHU 7KH 056 SDLG KLP D PRGHVW DPRXQW GXULQJ WKLV SHULRG DQG
KH ZDONHG DURXQG WRZQ ZLWK KLV WR\ KRUVH ZKLFK ZDV WR V\PEROL]H VRPH
WKLQJ RU DQRWKHU ZKLFK QHLWKHU , QRU PRVW RWKHU SHRSOH , DVNHG HYHU TXLWH
XQGHUVWRRG +H DOVR SOD\HG JXLWDU RQ EXVHV WKDW ZHUH VHW XS IRU SURWHVWV
LQ 0DQDJXD DQG KH VSUD\ SDLQWHG WKH OHWWHUV ¶056· RQ PDQ\ GRZQWRZQ
EXVLQHVVHV PDQ\ WLPHV LQ -XO\  )RU DOO KLV HQJDJHPHQW DJDLQVW 2UWHJD
6DDYHGUD LWV VRXUFH ZDV SHUVRQDO KDWH PRUH WKDQ D SROLWLFDO PRWLYDWLRQ
+H WUDYHOHG WKURXJK PXFK RI (XURSH DQG VSRNH )UHQFK ZLWK KLV GRJ LQ WKH
DEVHQFH RI DQ\ RWKHU )UHQFK VSHDNLQJ SHUVRQ +H H[SODLQHG WR PH WKDW
RQFH GXULQJ RQH RI KLV WUDYHOV KH ZHQW WR &XED VWXG\LQJ WRJHWKHU ZLWK RQH
RI 2UWHJD 6DDYHGUD·V VRQV 2UWHJD 6DDYHGUD·V VRQ DSSDUHQWO\ DOZD\V KDG
 86' D PRQWK DYDLODEOH DQG KDG ORWV RI JLUOV ZKLOH 9DUJRQ GLG QRW
7KLV ZDV KLV VROH VRXUFH RI KDWUHG RI 2UWHJD 6DDYHGUD KH UHDGLO\ H[SODLQHG
WR PH RQH GD\ DIWHU , KDG KXQJ DURXQG KLP IRU DQ H[WHQGHG SHULRG
7KH JURXS RI 056 PLOLWDQWV LQ /HyQ ZDV UDWKHU VPDOO 2QO\ ² SHRSOH
ZRXOG ORLWHU DURXQG WKH 056 KHDG TXDUWHUV DQG HYHQ WKHVH IHZ FRXOG QRW
DJUHH RQ DFWXDO SROLWLFV RWKHU WKDQ WKDW WKH\ DOO KDWHG 2UWHJD 6DDYHGUD
, LQLWLDOO\ WULHG WR ILQG RXW ZKDW WKH 056 ZDV DERXW LQ WHUPV RI SROLWLFDO
GHPDQGV WKLQNLQJ LW VKRXOG EH VHHQ DV MXVW DQRWKHU VWUHDP RI 6DQGLQLVPR
%\ 6HSWHPEHU  KRZHYHU ZKHQ WKH 056 RIILFLDOO\ FDOOHG IRU YRWLQJ IRU
WKH PDLQ /LEHUDO SDUW\ WKH 3/& ZKRP WKH\ KLWKHUWR KDG EHHQ DFFXVLQJ
LQ WKH ZRUOG SUHVV RI KDYLQJ D SDFW ZLWK WKH )6/1 WR UXOH WKH FRXQWU\
GLFWDWRULDOO\ LQEHWZHHQ WKHP VHH DOVR ³ (O SDFWR S   LW EHFDPH FOHDU
WKDW PRVW VWDWHPHQWV PDGH E\ WKHP ZHUH RI D VWUDWHJLF QDWXUH ,Q /HyQ
9DUJRQ H[SODLQHG WR PH WKH 056 ZRXOG KDYH UHFHLYHG ILYH MREV LQ WKH FLW\
FRXQFLO KDG WKH 3/& ZRQ WKH ORFDO HOHFWLRQV RI WKDW \HDU
$QRWKHU XQGHUFRPPXQLFDWHG IDFW LQWHUQDWLRQDOO\ LV WKDW LW ZDV WKH
056 ZKR VWDUWHG RXW E\ RIILFLDOO\ OHDYLQJ WKH SULQFLSOHV RI FODVV ZDU )RQ
5RQDOG 9DUJRQ LV SUHVHQW GXULQJ PRVW SURWHVWV DJDLQVW 3UHVLGHQW -RVp 'DQLHO
2UWHJD 6DDYHGUD +HUH KH SURWHVWV WKH DJUHHPHQW 2UWHJD 6DDYHGUD KDV
DOOHJHGO\ PDGH ZLWK IRUPHU 3UHVLGHQW -RVp $UQROGR $OHPiQ /DFD\R RI WKH
3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/& WR VSOLW DOO SRZHU EHWZHHQ WKHP LQ WKH
V )DOO  9DUJRQ FDPSDLJQV IRU WKH 3/& ZKHQ $OHPiQ /DFD\R DQG
WKH 3/& KDYH FRPH WR DQ DJUHHPHQW ZLWK 9DUJRQ·V SDUW\ WKH 0RYLPLHQWR
5HQRYDGRU 6DQGLQLVWD 056 WR ZRUN WRJHWKHU LQ WKH PXQLFLSDO HOHFWLRQV RI



 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

VHFD 7HUiQ E DQG DQWLLPSHULDOLVP )RQVHFD 7HUiQ H  ZKLOH WKH
)6/1 FRQWLQXHG ZLWK WKH RULJLQDO SDUW\ OLQH 7RGD\ WKH 056 DFFXVHV WKH
)6/1 VLPXOWDQHRXVO\ RI EHLQJ XOWUD OHIWLVW DQG QRW FRQGXFWLQJ D WUXH UH
YROXWLRQ 7KH\ DOVR KROG WKDW D UHYROXWLRQ LV QRW SRVVLEOH DW WKH FXUUHQW
VWDJH \HW WKH\ EHOLHYH WKH\ DQG QRW WKH )6/1 FDUU\ RQ WKH OHJDF\ RI WKH
V )RQVHFD 7HUiQ E G  7KH UKHWRULF RI WKH 056 PD\ VHHP
FRQWUDGLFWRU\ WR WKH RXWVLGH REVHUYHU DQG DUH SRUWUD\HG DV VXFK E\ )6/1
VSRNHVSHUVRQ )RQVHFD 7HUiQ \HW DOPRVW QHYHU LV LW H[SODLQHG WKLV ZD\
RXWVLGH RI 1LFDUDJXD
%HFDXVH WKH 056PHPEHUV DUH NQRZQ IRU EHLQJ LQWHOOHFWXDOV , LQLWLDOO\
H[SHFWHG WKHP WR KDYH PRUH GLVFXVVLRQV DERXW SROLWLFV WKDQ ZKDW PRVW
)6/1 FRQQHFWHG \RXWKV HQJDJH LQ EXW , IRXQG UHPDUNDEO\ OLWWOH RI WKDW
7KH ILUVW WLPH , VDW ZLWK D VPDOO JURXS RI WKHP , HQJDJHG WKHP DOO LQ
GLVFXVVLRQ DVNLQJ ZKDW WKH\ WKRXJKW ZHQW ZURQJ LQ WKH V 2QH RI
WKHP DQ ROGHU DQG TXLWH FHQWUDO JHQWOHPDQ FODLPHG WKH SUREOHP ZDV
WKDW 2UWHJD 6DDYHGUD KDG GRQH DOO KH FRXOG WR XSVHW WKH 8QLWHG 6WDWHV E\
DOO\LQJ ZLWK WKH 6RYLHW 8QLRQ DQG KHOSLQJ WKH )UHQWH )DUDEXQGR 0DUWt SDUD OD
/LEHUDFLyQ 1DFLRQDO )0/1 LQ (O 6DOYDGRU $W WKLV SRLQW , ZDV DFFXVWRPHG
WR WKDW 1LFDUDJXDQV ZHUH XVHG WR DQG H[SHFWHG SROLWLFDO GLVDJUHHPHQW DQG
VKRZLQJ WKDW RQH NQHZ LQWHUQDOV DERXW 1LFDUDJXDQ SROLWLFV ZRUNHG WR P\
DGYDQWDJH ZKHQ , WULHG WR KDYH SHRSOH RSHQ XS HYHQ ZKHQ WKH\ GLVDJUHHG
ZLWK PH 6R , VDLG WKDW WKH ZD\ , KDG KHDUG WKH VWRU\ ZDV 2UWHJD 6DDYHGUD
ILUVW WULHG WR JR WR WKH 8QLWHG 6WDWHV WR ILQG KHOS EHIRUH WXUQLQJ WR WKH
6RYLHW 8QLRQ
'LIIHUHQW IURP ZKDW , KDG H[SHULHQFHG LQ VLPLODU SROLWLFDO GLVFXVVLRQV
ZLWK SHRSOH LQ WKH VWUHHWV WKLV ZDV QRW WKH VWDUW EXW WKH HQG RI WKH GLVFXV
VLRQ +H VLPSO\ VDLG ´:HOO WKDW·V ZKDW , WKLQNµ 1RRQH HOVH FRPPHQWHG
RQ LW DQ\ IXUWKHU , ZDV TXLWH DVWRQLVKHG WKHVH SROLWLFDO DFWLYLVWV VHHPHG WR
EH PXFK OHVV LQWHUHVWHG LQ GLVFXVVLQJ SROLWLFV WKDQ WKH JHQHUDO SRSXODFH
$IWHU LQWHUYLHZLQJ VHYHUDO RI WKH ROGHU DFWLYLVWV LQGLYLGXDOO\ DERXW WKHLU
SHUVRQDO SROLWLFDO RXWORRN , XQGHUVWRRG ZK\ WKH\ FRXOG QRW WDON DERXW FRQ
FUHWH SROLWLFV 7KH\ VLPSO\ GLG QRW DJUHH RQ DQ\WKLQJ DPRQJ WKHPVHOYHV
$OO WKH\ KDG LQ FRPPRQ LV WKDW WKH\ GLG QRW OLNH 2UWHJD 6DDYHGUD
7KHLU FDQGLGDWH IRU PD\RU QHYHU VSRNH RI DQ\WKLQJ FRQFUHWH DERXW
ZKDW KH ZDQWHG WR UHDOL]H ZKHQ WRJHWKHU ZLWK WKRVH ZRUNLQJ RQ KLV FDP
SDLJQ :KHQ , DVNHG KLP DERXW ZKDW KH ZDQWHG WR GR LQ WKH FRQWH[W RI DQ
RIILFLDO LQWHUYLHZ KH H[SODLQHG WKDW KH VWXGLHG PDUNHWLQJ LQ WKH 8QLWHG
6WDWHV DQG KLV SODQ ZDV WR VTXHH]H PRUH PRQH\ RXW RI WKH VWXGHQWV ZKR
&RQFOXGLQJ UHPDUNV 

FRPH WR /HyQ IURP WKH VXUURXQGLQJ FRXQWU\VLGH 2WKHU 056 DFWLYLVWV H[
SODLQHG WKH\ ZHUH ¶WKHRUHWLFDO 0DU[LVWV· DQJU\ ZLWK WKH UHIRUPLVP WKDW
IRUPV DQ LQKHUHQW SDUW RI WKH 6DQGLQLVPR RI WKH VHFRQG 2UWHJD 6DDYHGUD
JRYHUQPHQW 2WKHU 056 DFWLYLVWV VDLG WKH ¶FODVV ZDU· DJDLQVW WKH ULFK
ZKLFK WKH\ FODLPHG 2UWHJD 6DDYHGUD VWRRG IRU VKRXOG EH HQGHG
7KH 056 \RXWKV VHHP WR KDYH QR LGHD RI WKHLU RZQ ZKDW WKH\ ZDQWHG
WR KDSSHQ DFFRUGLQJ WR VRPH RI WKH ROGHU 056SHRSOH ZKR UDLVHG SRLQWV
RI FULWLFLVP DERXW WKHP ZKHQ , VSRNH WR WKHP LQGLYLGXDOO\ 7KH RQO\ WZR
056 DFWLYLVWV LQ /HyQ ZKR ZHUH LQ WKHLU V DQG V VHHPHG PRVW F\QLFDO
2QH RI WKHP WROG PH D ORW RI WKH LQWHUQDO VHFUHWV RI WKH JURXS DQG WKDW ´RI
WKH \RXQJVWHUV KHUH WKHUH LV QRW RQH ZKR KDV HYHQ WRXFKHG D ERRNµ DQG
WKDW ´DOO >WKH\@ KDYH LQ WKHLU KHDG LV MXVW VH[ VH[ VH[µ +H H[SODLQHG KRZ
WKH RQH JLUO ZKR VKRZHG XS DW DOO WKHLU GHPRQVWUDWLRQV ZDV LQYROYHG ´LQ
VRPH VH[ JDPH ZLWK KHU ER\IULHQGµ WKDW LQYROYHG KHU VKRZLQJ XS DW SDUW\
KHDGTXDUWHUV DOO WKH WLPH
7KH VHFRQG 056 DFWLYLVW LQ WKH VDPH DJH UDQJH ZDV UHVSRQVLEOH IRU WKH
HFRQRPLFV RI WKH 056 /HyQ DQG EHIRUH RQH GHPRQVWUDWLRQ KH FDOOHG PH DQG
VDLG , VKRXOG FRPH WR WKHLU KHDGTXDUWHUV LPPHGLDWHO\ , UDQ GRZQWRZQ +H
H[SODLQHG WKH\ QHHGHG & IURP PH EHFDXVH WKH\ ZRXOG RWKHUZLVH QRW
EH DEOH WR SD\ IRU WKH VRXQG HTXLSPHQW IRU DQ XSFRPLQJ GHPRQVWUDWLRQ
DQG WKDW LI WKH\ GLG QRW KDYH WKDW WKHLU IDWH ZRXOG OLNHO\ EH VHDOHG ,
ODWHU IRXQG RXW KH WROG WKH RWKHUV , GRQDWHG &² IRU D FDQ RI VSUD\
SDLQW DQG SRFNHWHG WKH UHVW ´<RX NQRZ KH LV D FRFDLQH DGGLFWµ ZDV WKH
H[SODQDWLRQ JLYHQ WR PH 7KH LQWHUQDO FRUUXSWLRQ GLG QRW VHHP WR ZRUU\
DQ\RQH 7KH 056 DFWLYLVWV LQ /HyQ PD\ QRW EH UHSUHVHQWDWLYH RI DQ\WKLQJ
EH\RQG WKHPVHOYHV 'XULQJ WKRVH PRQWKV KRZHYHU WKH 056 DW D QDWLRQDO
OHYHO FODLPHG /HyQ ZDV ZKHUH WKH\ KDG WKH PRVW VXSSRUW 7RJHWKHU ZLWK
WKHLU ORVV RI OLFHQVH WR UXQ LQ QDWLRQDO HOHFWLRQV LW PHDQW WKDW WKHUH ZDV D ORW
RI IRFXV RQ WKH SDUW\ LQ /HyQ E\ QDWLRQDO DQG LQWHUQDWLRQDO PHGLD ,W ZDV
HYHQ PRUH VXUSULVLQJ WKDW WKLQJV ZHUH VR EDGO\ RUJDQL]HG DQG VKRZV KRZ
OLWWOH HPSKDVLV ZDV SODFHG RQ LGHRORJLFDO VWXGLHV E\ WKH 056 HVSHFLDOO\
JLYHQ WKDW WKH\ FRXOG QRW HYHQ PXVWHU D VLQJOH \RXWK LQ WKH FRXQWU\·V
VHFRQG ELJJHVW FLW\ LQWHUHVWHG LQ WKHRUHWLFDO VWXGLHV

&RQFOXGLQJ UHPDUNV
$V VKRZQ LQ WKLV FKDSWHU WKH W\SHV RI 6DQGLQLVWDV WKDW H[LVW DUH PDQ\
:KLOH WKH JHQHUDO 1LFDUDJXDQ SRSXODWLRQ VHHPV WHUULEO\ LQWHUHVWHG LQ
 )DFWRUV WKDW GLIIHUHQWLDWH 6DQGLQLVWDV

SROLWLFDO GLVFXVVLRQV WKHUH DUH FHUWDLQ OLPLWV DV WR KRZ SROLWLFDO FRQFHSWV

DUH FRPPXQLFDWHG $PRQJ WKRVH ZLWK D EDFNJURXQG RI KLJKHU HGXFDWLRQ
WKLV VHHPV UHODWHG WR D JHQHUDWLRQDO GLVFRQQHFW EHWZHHQ )6/1 6DQGLQLVWDV
ZKR KDYH H[SHULHQFHG WKH LQVXUUHFWLRQ DQGRU WKH 6DQGLQLVWD UXOH RI WKH
V DQG WKRVH ZKR KDYH QRW H[SHULHQFHG WKDW WLPH 7KLV PD\ EH GXH
WR D SHULRG LQ ZKLFK 6DQGLQLVWD SROLWLFV ZHUH QRW GLVFXVVHG GXULQJ WKH
\HDUV RI QHROLEHUDOLVP $PRQJ SURIHVVLRQDOV ZKR ZRUN ZLWKLQ KLJK UDQNV
RI WKH VWDWH DSSDUDWXV D OHVV GLUHFW ZD\ RI FRPPXQLFDWLQJ VRPH SROLWLFDO
FRQFHSWV LV XVHG 7KLUG WKH 056 6DQGLQLVWD SDUW\ ZKLFK FRQVLVWV PDLQO\ RI
SHRSOH ZLWK D XQLYHUVLW\ EDFNJURXQG GRHV QRW WDON DERXW SROLWLFV SUREDEO\
GXH WR D ODUJH QXPEHU RI LQWHUQDO GLIIHUHQFHV
$ KHDY\ FRQWUDVW EHWZHHQ WKH OHYHO RI RUJDQL]DWLRQ DPRQJ WKH \RXWKV
LQ WKH V DQG QRZ H[LVWV EXW QRW QHFHVVDULO\ LQ WKH LQLWLDO OHYHO RI SROLWL
FDO HGXFDWLRQ RI WKH PDMRULW\ RI 6DQGLQLVWDV , VSRNH WR RQH RI WKH (DVW *HU
PDQV KLJKO\ DFWLYH DW WKH :LOKHOP 3LFN VFKRRO DQG ZKR VWXGLHG WRJHWKHU
ZLWK 1LFDUDJXDQV WKHUH LQ WKH PLGV +H GHVFULEHG WKH 1LFDUDJXDQ -6
RI WKH WLPH WKLV ZD\

,W ZDV WKH JUDQG PDQHXYHU RI WKH ''5 ² 1LFDUDJXDQV DQG

:HVW 6DKDUDQV ZHUH SXW LQ WKH VDPH JURXS RI VWXGHQWV ZKR
ZHUH VWXG\LQJ DW D YHU\ EDVLF OHYHO >EHFDXVH WKH\ GLG QRW KDYH
WKDW VFKRROLQJ IURP KRPH@ DQG LQ WKDW ZD\ LQIOXHQFHG ZKDW
GLUHFWLRQ WKH PRYHPHQW ZHQW

,Q WKH V D UHPDUNDEOH HIIRUW ZDV PDGH LQ VSUHDGLQJ WKHRUHWLFDO NQRZO

HGJH E\ WKH (DVWHUQ (XURSHDQ SRZHUV ,Q WKH FXUUHQW SHULRG RQO\ D OLPLWHG
DPRXQW RI NQRZOHGJH HPDQDWHV IURP 9HQH]XHOD 'XULQJ P\ WLPH LQ 1LFD
UDJXD , GLG QRW VHH D VLQJOH LQVWDQFH RI D VWXGHQW JRLQJ WR 9HQH]XHOD 6RPH
ZHQW WR &XED EXW WKDW ZDV DOVR WKH FDVH LQ WKH \HDUV ZLWK QHROLEHUDO JRYHUQ
PHQWV 7KH DJUHHPHQWV ZLWK 5XVVLD LQFOXGH VRPH VFKRODUVKLSV WR VWXG\ LQ
5XVVLD ZKLFK , RQO\ KHDU UHIHUUHG WR DV ´VFKRODUVKLSV IRU WKH 6RYLHW 8QLRQµ
ZLWK WKH PRVW HQWKXVLDVP VKRZQ IRU WKHP E\ ROGHU 6DQGLQLVWDV ZKR ZHQW
WR VWXG\ LQ WKH 6RYLHW 8QLRQ LQ WKH V ,I PRUH HGXFDWLRQ LV HPSOR\HG
ZLWK WKH -6 WKLV PD\ FKDQJH ,W VHHPHG WKDW LQ WKH ODVW PRQWKV RI P\
VWD\ WKHUH ZDV D VWURQJHU HPSKDVLV RQ LGHRORJLFDO VFKRROLQJ ZLWKLQ WKH
-6 7KLV GHVFULSWLRQ RI D JHQHUDWLRQ RI SROLWLFDOO\ XQHGXFDWHG 6DQGLQLVWDV
PD\ WKHUHIRUH SRVVLEO\ RQO\ ILW WKH ILUVW IHZ \HDUV RI WKH FXUUHQW SKDVH RI
WKH 6DQGLQLVWD UHYROXWLRQ
 "MLAJSQGML
1LFDUDJXDQV DQG VSHFLILFDOO\ 6DQGLQLVWDV VHH 1LFDUDJXD DV YHU\ FHQWUDO WR
ZRUOGKLVWRU\ )RU WKHP SROLWLFV LV D YHU\ LPSRUWDQW SDUW RI WKHLU OLIH DQG
WKDW LQFOXGHV PRUH WKDQ MXVW VKRZLQJ XS WR YRWH HYHU\ IHZ \HDUV ² LW PHDQV
JRLQJ RQ PDUFKHV ZRUNLQJ LQ GLIIHUHQW W\SHV RI RUJDQL]DWLRQV DQG DW WLPHV
SDUWLFLSDWLQJ LQ SK\VLFDO FRQIURQWDWLRQV , KRSH WKLV ERRN FDQ FRQWULEXWH
VRPH WR WKH XQGHUVWDQGLQJ RI IRUHLJQHUV ZKR JHW WR NQRZ 1LFDUDJXD WKH
ILUVW WLPH DQG ZKR DOOWRRIWHQ VHHP WR EHOLHYH LQ D VLPSOLVWLF YHUVLRQ
DFFRUGLQJ WR ZKLFK WKH V ZHUH DERXW KRQHVW\ DQG FRPPXQLVP DQG WKH
FXUUHQW SHULRG LV RQO\ DERXW FRUUXSWLRQ DQG D SUHVLGHQW WXUQHG FDXGLOOR
,Q VKRUW ZH FRXOG VXPPDUL]H WKH ILQGLQJV RI WKLV ERRNV WKLV ZD\ ,Q
1LFDUDJXD KLVWRULFDO DJHQF\ WHQGV WR EH LQWHUSUHWHG DV UHVLGLQJ LQ 1LFDUD
JXDQ KDQGV ERWK LQ WKH SDVW DQG FXUUHQWO\ ,Q PDQ\ RFFDVLRQV YLHZV IURP
RXWVLGH RI 1LFDUDJXD ZRXOG LQVWHDG OLNHO\ LGHQWLI\ VRPH KLVWRULFDO DJHQF\
ZKLFK LV IRUHLJQ DQG ZKLFK KDV LQIOXHQFHG 1LFDUDJXDQ UHDOLW\ $GGLWLRQ
DOO\ WKHUH LV D PDUNHG GLIIHUHQFH EHWZHHQ WKH LQWHUSUHWDWLRQ E\ GLIIHUHQW
1LFDUDJXDQ JURXSV RI V\PEROLFSROLWLFDO DFWV 7KH HFRQRPLFDO SODQV DQG UH
DOLWLHV WKDW H[LVWHG GXULQJ WKH WLPH RI SDVW UHJLPHV ZKLFK GLIIHUHQW JURXSV
RI 1LFDUDJXDQV VWLOO LGHQWLI\ ZLWK DUH HDFK MXGJHG DFFRUGLQJ WR WKHLU RZQ
FULWHULD 7KH FULWHULD WKDW DUH XVHG WR MXGJH WKH VXFFHVV DQ\ SDUWLFXODU
UHJLPH RIWHQWLPHV FURVV WKHVH GLIIHUHQW JURXSV 6LPLODUO\ VXSSRUW IRU D
SDUWLFXODU W\SHV RI HFRQRPLF SROLF\ JRHV DFURVV SROLWLFDO JURXSV :KHUHDV
6DQGLQLVPR LQWHUQDWLRQDOO\ PD\ EH VHHQ DV V\QRQ\PRXV ZLWK D FHUWDLQ
W\SH RI VRFLDOLVW SODQQLQJ DQG WKH RSSRVLWLRQ ZLWK IUHHPDUNHW FDSLWDOLVP
WKH GLIIHUHQFHV LQ HFRQRPLF SUHIHUHQFHV DPRQJ WKRVH LGHQWLI\LQJ ZLWK
RSSRVLQJ SROLWLFDO JURXSV LV QRW DV VKDUS :KDW HFRQRPLF SROLFLHV RQH
SURSRVHV RU HFRQRPLF FODVV RQH EHORQJV WR GRHV QRW VHHP WR EH GLUHFWO\
OLQNHG ZLWK SROLWLFDO DIILOLDWLRQ DOWKRXJK WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ
1DFLRQDO )6/1 LV WKH SDUW\ WKDW PRVW GLUHFWO\ DGGUHVVHV WKH SRRUHU OD\HUV
RI VRFLHW\ 7KH GLIIHUHQFH LQ KRZ UHJLPHV LQ WKH SDVW DUH MXGJHG LV UHODWHG


 &RQFOXVLRQ

WR ZKHWKHU RQH ORRNV DW WKH DFWXDO H[LVWLQJ HFRQRPLF UHDOLW\ GXULQJ LWV
WLPH RU ZKHWKHU RQH IRFXVHV RQ ZKDW SODQV IRU HFRQRPLF GHYHORSPHQW
D JLYHQ JRYHUQPHQW KDG 7KH VHFRQG YLHZ SURYLGHV IRU WKH KLVWRU\ RI D
FHUWDLQ JRYHUQPHQW WR EH VHHQ DV SRVLWLYH HYHQ WKRXJK WKHLU SURSRVHG
JRDO QHYHU PDWHULDOL]HV 7KLV LV VSHFLILFDOO\ WUXH IRU WKH )6/1 JRYHUQPHQW
RI WKH V
7KH GHYHORSPHQW RI 6DQGLQLVWD SROLWLFDO DFWLYLWLHV WDNHV SODFH FRQ
VWDQWO\ DQG WR D KLJK GHJUHH DUH HLWKHU WKH UHVSRQVH WR RU RI WKH RULJLQ
RI LQWHUQDWLRQDO LQYROYHPHQW 7KH UHSHUWRLUH RI 6DQGLQLVWD DFWLYLWLHV LV
ZLGHUDQJLQJ DQG PRVWO\ D FROOHFWLYH SURFHVV LV LQYROYHG QRW H[FOXVLYHO\
FRQWUROOHG E\ RQH HQWLW\ VXFK DV WKH 3UHVLGHQW 6RFLHW\ PD\ EH PRUH IUDJ
PHQWHG WKDQ LQ WKH V EHFDXVH PRUH VPDOOHU LQGHSHQGHQW JURXSV H[LVW
HDFK RI ZKLFK KDYH D XQLTXH YLHZ RI WKLQJV $W WKH VDPH WLPH IDPLO\
UHODWLRQV KDYH LQ UHFHQW \HDUV RIWHQ EHHQ VWURQJHU WKDQ WKH ZLOO WR WDNH
LQGLYLGXDO FKRLFHV LI ZH DUH WR EHOLHYH WKH ROGHU 6DQGLQLVWDV
7KH 6DQGLQLVWD SHUVSHFWLYH RI ZRUOG SROLWLFV LV XQLTXH 7KLV LV DW OHDVW
LQ SDUW GXH WR WKH XQLTXH KLVWRULFDO SDVW RI 1LFDUDJXD DQG WKH 6DQGLQLVWD
PRYHPHQW ,W LV WKLV SDUWLFXODU 1LFDUDJXDQ KLVWRU\ FRQQHFWHG ZLWK 1LFD
UDJXDQ XQGHUVWDQGLQJV RI JOREDO JHRSROLWLFV DQG WKH G\QDPLFV RI OHIWLVW
JURXSV LQ SRZHU ZKLFK PHDQ WKDW 1LFDUDJXD VHHPV WR KDYH RWKHU RSWLRQV
DYDLODEOH WKDQ RWKHU FRXQWULHV WKDW LQ HFRQRPLF WHUPV VHHP UDWKHU VLPLODU
,W VHHPV 1LFDUDJXDQV KDYH GHYHORSHG D SDUWLFXODU W\SH RI XQGHUVWDQGLQJ RI
IUHHGRP RI KLVWRULFDO DJHQF\ ZKLFK LV FRPSDWLEOH ZLWK PRVW EDVLF SRLQWV
RI 'HSHQGHQF\ 7KHRU\ HYHQ LI VXFK WKHRUHWLFDO SRLQWV DUH PDGH PXFK OHVV
QRZ WKDQ LQ WKH V
2QH SRVVLEOH LQWHUSUHWDWLRQ RI 'HSHQGHQF\ 7KHRU\ OHDGV WR D ZRUOG
YLHZ ZKLFK HIIHFWLYHO\ PDNHV DQ\ KLVWRULFDO DJHQF\ IRU LQGLYLGXDOV LPSRV
VLEOH $FWRUV ZLWKLQ FRXQWULHV VXFK DV 1LFDUDJXD ZKLFK LV SHULSKHUDO DQG
GRHV QRW SURGXFH DQ\WKLQJ RI FRQVLGHUDEOH LPSRUWDQFH FDQQRW SRVVLEO\
LQIOXHQFH WKHLU RZQ VLWXDWLRQ 7KLV LV QRW WKH YLHZ WKDW PRVW 6DQGLQLVWDV
VHHP WR KDYH DW OHDVW QRW DERXW PDQ\ LVVXHV 7KH XQGHUVWDQGLQJ WKDW H[LVWV
ZLWKLQ 6DQGLQLVPR LQ UHODWLRQ WR 'HSHQGHQF\ DOWKRXJK QRW IRUPXODWHG
H[SOLFLWO\ VHHPV IRU D ORQJ WLPH WR KDYH IROORZHG WKH OLQH RI WKH (J\SWLDQ
'HSHQGHQF\ 7KHRULVW 6DPLU $PLQ ,Q PRVW RI KLV ZULWLQJV KH H[SUHVVHV
D EHOLHYH LQ WKH SRVVLELOLW\ RI FKDQJLQJ WKH FXUUHQW ZRUOGZLGH VHWXS IXQ
GDPHQWDOO\ DQG KLV DQDO\VLV JHQHUDOO\ HQG ZLWK D FDOO IRU DFWLRQ GLUHFWHG
WRZDUGV WKLUG ZRUOG FRXQWULHV +LV YLHZ RI WKH WUDMHFWRU\ RI WKLUG ZRUOG
VRFLDOLVWV FKDQJHG LQ UHFHQW GHFDGHV ,Q &ODVV DQG QDWLRQ $PLQ GHFODUHG
 

DXWRQRPRXV FDSLWDOLVP LQ WKH FRXQWULHV RI WKH SHULSKHU\ LV LPSRVVLEOH

7KHUHIRUH WKH QDWLRQDO OLEHUDWLRQ PRYHPHQWV VKRXOG EH VHHQ DV SDUW RI
WKH GHYHORSPHQW RI VRFLDOLVP RQ D ZRUOG VFDOH UDWKHU WKDQ SDUW RI UHJLRQDO
GHYHORSPHQW RI FDSLWDOLVP $PLQ    7HQ \HDUV ODWHU LQ 7KH VRFLDO
PRYHPHQWV LQ WKH SHULSKHU\ KH GHFODUHG WKH QDWLRQDO OLEHUDWLRQ IURQWV·
GHDG ZLWK WKHLU SURPLVH RI QRWKLQJ EH\RQG QDWLRQDO LQGHSHQGHQFH QRW
EHLQJ HQRXJK IRU WKH PDVVHV RI WKH VRXWK ZKR IHHO HYHU\GD\ H[SORLWDWLRQ
E\ FDSLWDOLVP $PLQ  ²  $QRWKHU  \HDUV ODWHU LQ 7KH OLEHUDO YLUXV
KH FDOOHG IRU UHQHZHG SROLWLFL]DWLRQ LQ WKH JOREDO 6RXWK DQG WKH EXLOGLQJ
RI QHZ ,QWHUQDWLRQDOV DQG FUHDWLQJ OLQNV ZLWK (XURSH WR RUJDQL]H DJDLQVW
WKH ¶QHRQD]LV· LQ WKH 8QLWHG 6WDWHV JRYHUQPHQW $PLQ  
6LPLODUO\ LQ  WKH 6DQGLQLVWDV KDG JUHDW KRSHV RI DFKLHYLQJ VRFLDO
LVP ZLWK WKH KHOS RI WKH )6/1 %\  WKH\ KDG ORVW WKH KRSH WKH\ ZRXOG
DFKLHYH PXFK RI DQ\WKLQJ DW WKH JRYHUQPHQW OHYHO DQG LQVWHDG LQYROYHG
WKHPVHOYHV LQ YDULRXV VRFLDO VWUXJJOHV $IWHU WKH WXUQ RI WKH PLOOHQQLXP
RQFH DJDLQ WKH EHOLHI LQ OHIWLVW LQWHUQDWLRQDOLVP JUHZ 7KH YLHZ H[SUHVVHG
E\ $PLQ LQ  GLG QRW VSHOO RXW ZKDW SRVVLELOLWLHV IRU KLVWRULFDO DJHQF\ H[
LVWHG LQ WKH FXUUHQW KLVWRULFDO SKDVH LQ ZKLFK WKH QDWLRQDO OLEHUDWLRQ IURQW
)6/1 GLG QRW GLVDSSHDU DV SUHGLFWHG DQG LQVWHDG LV EDFN LQ SRZHU ZLWK WKH
EDFNLQJ RI RWKHU WKLUG ZRUOG FRXQWULHV UDWKHU WKDQ WKH 6RYLHW 8QLRQ DQG
ZLWKRXW KDYLQJ WXUQHG HQWLUHO\ LQWR D V\VWHPDELGLQJ SDUW\ :KDW OLPLWV
IRU SROLWLFDO FKDQJHV DQG PDQHXYHUV H[LVW WRGD\ VHHPV WR EH VRPHWKLQJ
WKDW LV EHLQJ GLVFRYHUHG LQ HYHU\GD\ SUDFWLFH QRW RQO\ EH WKH JRYHUQPHQW
EXW E\ PDQ\ VPDOOHU JURXSV RI 6DQGLQLVWDV 7KHUH GRHV QRW VHHP WR H[LVW
WKH VDPH W\SH RI WKHRUHWLFDO IUDPHZRUN VXFK DV WKDW XSRQ ZKLFK &DUORV
)RQVHFD $PDGRU DQG WKH 6DQGLQLVWDV EHIRUH  XVHG WR OHJLWLPL]H WKHLU
UHYROXWLRQDU\ SURMHFW DQG DUJXH IRU LWV YLDELOLW\ (YHQ WKRXJK PDWHULDO
GHYHORSPHQW LQGLFDWRUV ODUJHO\ KDYH LPSURYHG VLQFH WKH V WKH 8QLWHG
6WDWHV VHHPV OHVV OLNHO\ WR LQWHUYHQH PLOLWDULO\ GXH WR LWV RWKHU REOLJDWLRQV
DQG WKH PDWHULDO IRXQGDWLRQ LQ WHUPV RI FRPSXWDWLRQDO SRZHU DQG WKH
VNLOOV WR GHYHORSPHQW DGYDQFHG ZHE DSSOLFDWLRQV WKDW FRXOG DFFRPPRGDWH
D SODQQHG HFRQRP\ DW OHDVW RI VRPH DVSHFWV LQ VRPH VHFWRUV LV SUHVHQW LQ
1LFDUDJXD DV WKH SURMHFW RI FUHDWLQJ D QDWLRQDO LQIRUPDWLRQ V\VWHP IRU WKH
0LQLVWHULR $JURSHFXDULR \ )RUHVWDO 0$*)25 VKRZHG WKHUH VHHPV WR EH D
JHQHUDO FRQVHQVXV DPRQJ PRVW 6DQGLQLVWDV³SRVVLEO\ ZLWK WKH H[FHSWLRQ
RI VRPH RI WKHLU LQWHOOHFWXDO OHDGHUV³WKDW WKH\ QR ORQJHU VHH LW DV YLDEOH WR
FUHDWH DQ HFRQRPLF V\VWHP PDUNHGO\ GLIIHUHQW IURP FDSLWDOLVP DV LW H[LVWV
HYHU\ZKHUH HOVH LQ WKH LPPHGLDWH IXWXUH 7KLV FDQ OLNHO\ DW OHDVW LQ SDUW
 &RQFOXVLRQ

EH DWWULEXWHG WR WKH GLVDSSHDUDQFH RI WKH 6RYLHW EORF DQG SRVVLEO\ DOVR DV

D ORQJWHUP UHDFWLRQ WR WKH ZDU RI WKH V
,W FDQQRW EH VDLG IRU FHUWDLQ ZKHUH WKH 6DQGLQLVWD PRYHPHQW ZLOO
JR DOWKRXJK , WU\ WR PDNH VRPH JXHVVHV EHORZ 7KH PRYHPHQW LV QRW
D GHPRFUDWLFFHQWUDOLVW SROLWLFDO SDUW\ DV ZKDW LV FRPPRQ PDQ\ SODFHV LQ
(XURSH LQ ZKLFK DQ LQWHUQDO GHPRFUDWLF SURFHVV UHJXODWHV WKH IRUPLQJ RI
PRVW SDUW\HQGRUVHG SROLFLHV QRU LV LW D VPDOO FKHHUOHDGHUJURXS DURXQG
3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD ,QVWHDG LW LV D QHWZRUN RI VHPL
LQGHSHQGHQW JURXSV RI YDULRXV VL]HV ZLWK VRPH RYHUODS RI SHUVRQQHO 7KH
GHWHUPLQDWLRQ RI 6DQGLQLVWD SROLF\ KDSSHQV LQ DQ DGKRF IDVKLRQ :KHQ
FRQIOLFWV H[LVW WKHVH DUH SOD\HG RXW LQ WKH RSHQ LQ 1LFDUDJXDQ GDLO\ OLIH
DQG DW WLPHV UHDFK WKH SRLQW RI SK\VLFDO ILJKWV 7KLV VWUXFWXUH VHHPV WR
DOORZ IRU H[WUHPH EURDG SDUWLFLSDWLRQ LQ SROLWLFDO SURFHVVHV IRU SHRSOH
IURP YHU\ GLIIHUHQW EDFNJURXQGV LQFOXGLQJ HFRQRPLFDO FODVV DQG DJH
3RVVLEO\ GXH WR WKLV GLIIHUHQFH LQ VWUXFWXUH WKDW , KDG QRW DQWLFLSDWHG
WKH TXHVWLRQ RI ZKHWKHU WKHUH LV SUHVVXUH IRU UDGLFDO FKDQJH IURP EHORZ
RQ 2UWHJD 6DDYHGUD RU ZKHWKHU WKH 6DQGLQLVWDV DUH D UDGLFDOL]HG HOLWH WKDW
WU\ WR LPSRVH UDGLFDO SROLF\ RQ WKH SRSXODWLRQ DJDLQVW WKH SRSXODWLRQ GLG
QRW VHHP DV UHOHYDQW 7KH SUHVVXUH RQ 2UWHJD 6DDYHGUD WKDW H[LVWV GRHV QRW
RULJLQDWH IURP RQO\ RQH GLUHFWLRQ :KLOH LW LV WUXH WKDW PDQ\ RI WKH SROLFLHV
RI WKH FXUUHQW JRYHUQPHQW ZHUH GUDIWHG E\ XUEDQ SURIHVVLRQDOV VXFK DV
WKRVH UHODWLQJ WR SRYHUW\ UHGXFWLRQ RWKHU SROLFLHV VXFK DV WKRVH PDQHX
YHULQJ DURXQG WKH TXHVWLRQ RI WKHUDSHXWLF DERUWLRQ VHHP WR EH XQSRSXODU
ILUVW DQG IRUHPRVW DPRQJ WKHVH VDPH XUEDQ SURIHVVLRQDOV 7KH WRWDOLW\ RI
DOO JRYHUQPHQW SROLFLHV VHHPV WR EH D FRPSURPLVH RI WKH GLIIHUHQW JURXSV
WKDW WRJHWKHU PDNH XS WKH 6DQGLQLVWD PRYHPHQW

'HYHORSPHQWV VLQFH«
6LQFH , OHIW 1LFDUDJXD LQ 6HSWHPEHU  VRPH LPSRUWDQW WKLQJV KDYH
RFFXUUHG 7KH WZR PRVW LPSRUWDQW LVVXHV DUH
,Q 2FWREHU  WKH &RUWH 6XSUHPD GH -XVWLFLD &6- GHFLGHG WKH FRQVWL
WXWLRQDO UHVWULFWLRQV DJDLQVW UHHOHFWLRQV ZHUH LQ FRQIOLFW ZLWK WKH ULJKW RI
HTXDOLW\ EHIRUH WKH ODZ WR VWDQG DV D FDQGLGDWH DQG EH HOHFWHG WR SXEOLF
RIILFH 7KH UHVWULFWLRQV DJDLQVW UHHOHFWLRQV KDG QRW EHHQ SDUW RI WKH RULJL
QDO FRQVWLWXWLRQ RI  DQG ZHUH DGGHG WKURXJK FRQVWLWXWLRQDO UHIRUP LQ
 3~OVDU  $11    7KLV ZDV WKH SHULRG ZKHQ WKH )UHQWH
6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 WHPSRUDULO\ KDG ORVW PRVW RI LWV
'HYHORSPHQWV VLQFH« 

PHPEHUV RI WKH $VDPEOHD 1DFLRQDO WR WKH QHZO\ HVWDEOLVKHG 0RYLPLHQWR 5HQ

RYDGRU 6DQGLQLVWD 056  7KH FRXUW DOVR FRQVLGHUHG VLPLODU GHFLVLRQV WKDW
SHUPLWWHG UHHOHFWLRQV LQ &RORPELD DQG &RVWD 5LFD LQ UHFHQW \HDUV (3  
7KH RSSRVLWLRQ DQG VSHFLILFDOO\ WKH 056 KDV VLQFH FODLPHG WKLV LV VLPSO\
D ILUVW PRYH WR HVWDEOLVK D OLIHWLPH GLFWDWRUVKLS E\ 3UHVLGHQW -RVp 'DQLHO
2UWHJD 6DDYHGUD 3RWRVPH  DQG KDYH RSHQO\ DVNHG IRU WKH PLOLWDU\ WR
LQWHUYHQH LQ D ZD\ WKDW FDQ EH LQWHUSUHWHG DV D FDOO IRU D PLOLWDU\ RYHUWKURZ
6LOYD   2SLQLRQ SROOV KDOI D \HDU EHIRUH WKH SUHVLGHQWLDO HOHFWLRQV WR
EH KHOG RQ  1RYHPEHU  VWDUWHG VKRZLQJ WKDW 2UWHJD 6DDYHGUD ZRXOG
ZLQ D ODQGVOLGH YLFWRU\ 5DGLR /D 3ULPHUtVLPD  DQG WKDW SLFWXUH KDV
QRW FKDQJHG VLQFH

,Q +RQGXUDV DQ DJUHHPHQW ZDV UHDFKHG LQ 0D\  EHWZHHQ 3UHV

LGHQW 3RUILULR ¶3HSH· /RER 6RVD HOHFWHG LQ 1RYHPEHU  LQ HOHFWLRQV
DUUDQJHG E\ WKH FRXS G·HWDW UHJLPH RQ RQH VLGH DQG IRUPHU 3UHVLGHQW
-RVp 0DQXHO =HOD\D 5RVDOHV DQG WKH )UHQWH 1DFLRQDO GH 5HVLVWHQFLD 3RSXODU
)153 RQ WKH RWKHU VLGH 7KH DJUHHPHQW DOORZHG IRU =HOD\D 5RVDOHV DQG
KLV VXSSRUWHUV WR UHWXUQ WR +RQGXUDV IURP H[LOH WKH IRUPDO UHFRJQLWLRQ
RI WKH )153 DV DQ RUJDQL]DWLRQ E\ VWDWH LQVWLWXWLRQV WR EH SHUPLWWHG WR
SDUWLFLSDWH LQ HOHFWLRQV DQG WKH IRUPDO UHFRJQLWLRQ RI WKH SULQFLSOHV RI
KXPDQ ULJKWV $IWHU =HOD\D 5RVDOHV UHWXUQHG WR +RQGXUDV RQ  0D\ 
+RQGXUDV ZDV UHDGPLWWHG WR WKH 2UJDQL]DWLRQ RI $PHULFDQ 6WDWHV 2$6 ZLWK
WKH YRWH RI 1LFDUDJXD DQG DJDLQVW WKH QRYRWH RI (FXDGRU ZLWK 9HQH]XHOD
DEVWDLQLQJ 7KH UHSUHVHQWDWLYHV RI (FXDGRU FODLPHG D VWDWH RI GHPRFUDF\
KDG QRW EHHQ UHHVWDEOLVKHG LQ +RQGXUDV \HW DQG UHDGPLWWLQJ WKH FRXQWU\
ZRXOG UHSUHVHQW D ¶GDQJHURXV SUHFHGHQW· &DQDOHV   6RPH +RQGXUDQ
DFWLYLVWV ZKR FDPSDLJQHG DJDLQVW WKH FRXS G·HWDW ZLWK ZKRP , FRQWLQ
XHG WR EH LQ FRQWDFW RYHU WKH ,QWHUQHW DOVR FODLPHG WKH VWDWH RI KXPDQ
ULJKWV LQ +RQGXUDV ZDV QRW OLNHO\ WR FKDQJH ZLWK WKLV DJUHHPHQW VLJQHG
1LFDUDJXDQ )6/1 DFWLYLVW ZHUH DQJU\ WKDW GXULQJ WKH VDPH ZHHN 5RVDOHV
=HOD\D ZDV UHDGPLWWHG LQWR +RQGXUDV WKH 1LFDUDJXDQ RSSRVLWLRQ PDLQO\
WKURXJK WKH RUJDQL]DWLRQ 8QLyQ 1LFDUDJHQVH $PHULFDQD 81$ ZLWK D VHDW
LQ 0LDPL DQG VXSSRUWHG E\ YDULRXV LQQHU1LFDUDJXDQ RSSRVLWLRQ JURXSV
VXFK DV WKH 0RYLPLHQWR SRU 1LFDUDJXD 0S1  RUJDQL]HG D ¶IRUXP· LQ WKH
0DQDJXD +ROLGD\ ,QQ KRWHO ZLWK WKH WLWOH ¶$QWLGRWH WR WKH 6RFLDOLVP RI WKH
VW &HQWXU\· RQ  0D\  ZKLFK KDG DV RQH RI LWV VSHDNHUV YLD ,QWHU
QHW 5REHUWR 0LFKHOHWWL %DtQ WKH +RQGXUDQ SROLWLFLDQ ZKR WRRN FKDUJH DV
¶GHIDFWR SUHVLGHQW· ZKHQ 5RVDOHV =HOD\D ZDV UHPRYHG )ORUHV  
 &RQFOXVLRQ

«DQG LQWR WKH IXWXUH

,I WKHUH DUH QR PDMRU FKDQJHV LQ WKH QH[W IHZ \HDUV DKHDG 1LFDUDJXD
VHHPV WR EH VORZO\ EXU VXUHO\ LPSURYLQJ DFFRUGLQJ WR PRVW GHYHORSPHQW
LQGLFDWRUV 7KLV GHYHORSPHQW KDV VSHG XS GXULQJ WKH FXUUHQW JRYHUQPHQW
EXW HYHQ EHIRUH WKDW GXULQJ WKH WLPHV RI /LEHUDO JRYHUQPHQWV D PDUNHG
LPSURYHPHQW LQ VHYHUDO LQGLFDWRUV FRXOG EH PHDVXUHG 7KLV UHDOL]DWLRQ
JRHV VRPHZKDW FRXQWHU WR ERWK VLGHV LQ 1LFDUDJXDQ ZKR JHQHUDOO\ OLNH WR
FODLP WKDW WKH FRXQWU\ ZHQW WR KHOO GXULQJ WKH WLPH WKH RWKHU JRYHUQPHQWV
RI RWKHU SDUWLHV ZHUH LQ FKDUJH
, WKLQN IURP WKLV RQH FDQ FRQFOXGH YDULRXV WKLQJV DOWKRXJK LW LV LP
SRVVLEOH WR SUHGLFW SUHFLVHO\ ZKHUH 1LFDUDJXD ZLOO EH LQ MXVW D IHZ \HDUV
&XUUHQWO\ IRXU GLIIHUHQW VFHQDULRV VHHP PRVW SUREDEOH WR PH

‡ 7KH 6DQGLQLVWDV PD\ VWD\ LQ SRZHU IRU D ORQJ WLPH ZLWK DQ DGPLQ
LVWUDWLRQ RI VRPH VRFLDO MXVWLFH SROLFLHV DQG RWKHUZLVH EXLOG XSRQ
PRGHOV RI FDSLWDOLVW H[SDQVLRQ 7KLV PD\ DFWXDOO\ ZRUN LQ EHWWHULQJ
OLYLQJ VWDQGDUGV IRU PRVW 1LFDUDJXDQV IRU D ZKLOH ,I WKH QHFHVVDU\
VWDELOLW\ DQG JXDUDQWHHG LQIUDVWUXFWXUH LV SURYLGHG D SRVLWLYH LQ
YHVWPHQW FOLPDWH DW D ORFDO OHYHO PD\ DULVH HYHQ WKRXJK FDSLWDOLVP
DW D ZRUOG VFDOH LV LQ D VOXPS 7RXULVP PD\ VKLIW IURP PRUH H[SHQ
VLYH ORFDWLRQV VXFK DV &RVWD 5LFD WR 1LFDUDJXD 0DQ\ 1LFDUDJXDQV
VHHP WR KDYH DQ H[WUHPH IDLWK LQ EHLQJ DEOH WR DGYDQFH E\ VHOOLQJ
VRPHWKLQJ RU RWKHU DW D ZRUOGVFDOH 7KLV ZRXOG REYLRXVO\ QRW EH
D PRGHO DGDSWDEOH E\ RWKHU FRXQWULHV DV LW ZRXOG UHO\ RQ EXVLQHVV
VKLIWLQJ IURP RWKHU SODFHV WR 1LFDUDJXD $OVR VRPH RI WKH IDLWK LQ
ZRUOGFDSLWDOLVP WKDW VRPH 6DQGLQLVWDV DQG RWKHU 1LFDUDJXDQV KDYH
VHHPV VRPHZKDW PLVSODFHG DQG WKH GHEW WR WKH ,QWHUQDWLRQDO 0RQ
HWDU\ )XQG ,0) DQG RWKHUV 1LFDUDJXD LV EXLOGLQJ XS DJDLQ VHHPV
IULJKWHQLQJ ,Q WKH ZRUVW FDVH VFHQDULR WKH )6/1 FRXOG LQGHHG WXUQ
LQWR DQRWKHU 3DUWLGR 5HYROXFLRQDULR ,QVWLWXFLRQDO 35,  /HW·V QRW IRU
JHW WKDW VRPH RI WKH JUHDWHVW UHYROXWLRQDU\ DGYDQFHV FHOHEUDWHG LQ
0H[LFR WRGD\ FDPH QRW DW WKH EHJLQQLQJ EXW UDWKHU VRPH GHFDGHV
LQWR WKH UHYROXWLRQ ZLWK /i]DUR &iUGHQDV ² 

‡ 7KH 6DQGLQLVWDV FRXOG DOVR VWD\ LQ SRZHU DQG WXUQ WR D PRUH UDGLFDO
FRXUVH DIWHU WDNLQJ RYHU WKH PDMRULW\ RI SDUOLDPHQW RU DIWHU WKH\
IHHO WKH\ KDYH EXLOW XS VXIILFLHQW LQGHSHQGHQW HQHUJ\ SURGXFWLRQ
LQIUDVWUXFWXUH HWF $OVR 3UHVLGHQW +XJR &KDYH] RI 9HQH]XHOD GLG
«DQG LQWR WKH IXWXUH 

QRW QDWLRQDOL]H ELJ LQGXVWU\ EHIRUH VHYHUDO \HDUV LQWR KLV JRYHUQ
PHQW SHULRG *LYHQ WKH VL]H RI WKH 1LFDUDJXDQ HFRQRP\ DQG WKH
FRQWLQXHG GHSHQGHQFH RQ IRUHLJQ DLG WR SD\ IRU SDUW RI WKH QDWLRQDO
EXGJHW WKLV ZRXOG EH D GLIILFXOW VLWXDWLRQ ,I LQ DGGLWLRQ WKH 8QLWHG
6WDWHV FRQWLQXHV WR KDYH PLOLWDU\ SHUVRQQHO VWDWLRQHG ERWK QRUWK
DQG VRXWK RI 1LFDUDJXD LQ &RVWD 5LFD DQG +RQGXUDV ZKR ERWK FRXOG
FXW RII DOO WUDGH URXWHV WKHQ QRW HYHQ 5XVVLD RU 9HQH]XHOD PD\ EH
DEOH WR KHOS 1LFDUDJXD ,I LW LV GRQH DV SDUW RI D ODUJHU SODQ LQ ZKLFK
PRUH 6RXWK $PHULFDQ FRXQWULHV SDUWLFLSDWH WKHQ LW PD\ KDYH EHW
WHU FKDQFHV IRU VXFFHVV ,I WKH 6DQGLQLVWDV ZDQW WR QDWLRQDOL]H ZK\
KDYH WKH\ QRW VDLG WKDW XQWLO QRZ" 2QH RI WKH OHVVRQV WKH\ PD\ KDYH
OHDUQHG IURP WKH V LV WKDW QDWLRQDOL]DWLRQV KDYH WR KDSSHQ LP
PHGLDWHO\ DQG VZLIW DQG QRW EH SUHDQQRXQFHG ,I QDWLRQDOL]DWLRQV
DUH DQQRXQFHG RQ EHIRUHKDQG WKH RZQHUV ZLOO RQO\ WU\ WR ILQG RXW
KRZ WR PRYH PRQH\ RXW RI WKH FRPSDQ\ DQG QHJOHFW UHLQYHVWPHQWV
DV ZKDW WKH FDVH ZLWK WKH ,QJHQLR 6DQ $QWRQLR ,6$ LQ WKH V $O
WKRXJK PXFK RI 6DQGLQLVWD SROLWLFV LV GRQH ZLWK GLIIHUHQW OHYHOV RI
VHFUHF\ DQG WULFNHU\ GXH WR WKH FKDUDFWHU RI 6DQGLQLVPR DQG WKH
IDFW WKDW LW HQWDLOV PDVV SDUWLFLSDWLRQ DQ\ VXFK VHFUHWV DUH DOZD\V
OLNHO\ WR OHDN RXW WR D FHUWDLQ GHJUHH 3ODQQLQJ VRPHWKLQJ OLNH QD
WLRQDOL]LQJ PDMRU EXVLQHVVHV ZRXOG OLNHO\ KDYH WR KDSSHQ ZLWKRXW
DQ\ FKDQFH RI WKH SODQV OHDNLQJ DQG ZRXOG WKHUHIRUH KDYH WR EH D
GHFLVLRQ RI RQO\ 2UWHJD 6DDYHGUD DQG D IHZ SHUVRQDO DGYLVHUV 6XFK
D PRYH PD\ DQJHU PDQ\ 6DQGLQLVWDV EHFDXVH WKH\ ZRXOG IHHO WKH\
ZHUH QRW LQYROYHG

‡ $QRWKHU SRVVLELOLW\ PD\ EH WKH /LEHUDO RSSRVLWLRQ DQG WKH VHFUHW VHU
YLFHV RI WKH 8QLWHG 6WDWHV VWDJH VRPH NLQG RI FRXS RU FLYLO ZDU 7KH
DFWLRQV DURXQG WKH PXQLFLSDO HOHFWLRQV RI  ORRNHG IULJKWHQLQJO\
VLPLODU WR ZKDW KDSSHQHG LQ &KLOH ² <HW VRPHKRZ WKLV GLG
QRW WUDQVIRUP LQWR D FRXS 7KH TXHVWLRQ LV ² ZK\ QRW" 7KH LQWHQW
RI WKH 1LFDUDJXDQ RSSRVLWLRQ VHHPHG SUHWW\ FOHDU WKDW WKH\ ZDQWHG
WR SURYRNH VRPHWKLQJ OLNH WKLV 0D\EH WKH 86 DGPLQLVWUDWLRQ ZDV
MXVW KHVLWDQW WR JHW LQYROYHG WRR GHHSO\ LQ 1LFDUDJXD 0D\EH WKHLU
DQDO\VLV ZDV WKDW RSSRVLWLRQ OHDGHUV GLG QRW KDYH WKH SRSXODU VXS
SRUW QHFHVVDU\ WR VWDJH D FRXS :KDW ZH NQRZ LV WKDW  \HDUV
ODWHU WKH 86 DGPLQLVWUDWLRQ VWDJHGSHUPLWWHG D FRXS LQ +RQGXUDV
6KRXOG WKH 8QLWHG 6WDWHV HYHU GHFLGH WR VWDJH VRPHWKLQJ VLPLODU LQ
 &RQFOXVLRQ

1LFDUDJXD LW ZRXOG VXUHO\ EH GLVDVWURXV DQG ZRXOG EH D VHWEDFN $W

WLPHV LW VHHPV WKDW VRPH RSSRVLWLRQ JURXSV GR QRW TXLWH UHDOL]H
ZKDW WKH\ ZRXOG EH LQYLWLQJ ,I WKH /LEHUDOV LQGHHG ZRXOG EH SXW
EDFN LQWR SRZHU ZLWK H[WHQVLYH PLOLWDU\ GHSOR\PHQW LQ 1LFDUDJXD
RU ZLWK WKH FRRSHUDWLRQ RI VRPH ORFDO PLOLWDU\ IRUFH WKHQ LW ZLOO
QRW EH WKH VDPH DV 1LFDUDJXD EHIRUH  7KH DPRXQW RI 6DQGLQ
LVWDV LV ODUJH DQG VLPLODU WR &KLOH WKH RQO\ ZD\ WR SUHYHQW WKHP
IURP WDNLQJ WKH FRXQWU\ EDFN SK\VLFDOO\ ZRXOG EH KDUVK UHSUHVVLRQ
'LIIHUHQW IURP &KLOH WKH 1LFDUDJXDQ PLOLWDU\ LV NQRZQ WR EH YHU\
OR\DO WR WKH 6DQGLQLVWDV %XW ZKHWKHU WKDW ZLOO DOZD\V UHPDLQ WKDW
ZD\ LV TXHVWLRQDEOH ,I HQRXJK RI WKHP GHWHUPLQH WKDW 3UHVLGHQW
2UWHJD 6DDYHGUD·V UHHOHFWLRQ LQ  LV XQFRQVWLWXWLRQDO WKHQ WKLV
PD\ ORRN TXLWH GLIIHUHQW

‡ $ ODVW OLNHO\ SRVVLELOLW\ ZRXOG EH WKH JURZWK RI D GHPRFUDWLF RSSRVL

WLRQ 7KH FXUUHQW RSSRVLWLRQ LV QRW GHPRFUDWLF EHFDXVH LW VHHNV WR
JDLQ SRZHU WKURXJK DOO W\SHV RI PHDQV RWKHU WKDQ ZLQQLQJ LQ RSHQ
HOHFWLRQV ² LQWHUYHQWLRQ E\ WKH 8QLWHG 6WDWHV PLOLWDU\ FRXS HWF ,Q
IDFW WKH PDLQ SUREOHP DV IDU DV ODFN RI GHPRFUDF\ JRHV LQ FXUUHQW
1LFDUDJXD VHHPV QRW WR EH WKDW RSSRVLWLRQ SDUWLHV DUH QRW DOORZHG
WR VSUHDG WKHLU SURSDJDQGD EXW WKDW MXVW DERXW HYHU\WKLQJ VDLG E\
WKH RSSRVLWLRQ LV SDUW RI VRPH JUDQG WULFNHU\ VFKHPH 7KHUH VHHPV
WR EH D FRPSOHWH ODFN RI LGHRORJ\ DQG WKH RSSRVLWLRQ SDUWLHV GR QRW
SUHVHQW D FRKHUHQW DOWHUQDWLYH WR WKH JRYHUQPHQW SROLFLHV RI WKH
6DQGLQLVWDV

,I WKH )6/1 VWD\V LQ SRZHU WKH LQQHUSDUW\ GHPRFUDF\ RI WKH )6/1 ZLOO
REYLRXVO\ EH DQ LVVXH IRU DOO 1LFDUDJXDQV ,I 2UWHJD 6DDYHGUD HQGV XS DV
SUHVLGHQW IRU  \HDUV WKH ZD\ VRPH ROGHU LQIRUPDQWV RI PLQH KDYH VDLG
WKH\ KRSHG LW ZLOO EH MXVWLILHG WR WDON RI FDXGLOOLVPR 7KH FULWLFLVP WKDW
FRPHV FRQFHUQLQJ WKLV QRZ IURP WKH ZHVW LV UDWKHU VLOO\ JLYHQ WKDW YHU\
IHZ RI WKHP OLPLWHG WKHLU OHDGHUV WR RQO\ VLW IRU  \HDUV DQG WKDW LQ SUDFWLFH
PDMRU SOD\HUV VXFK DV 8QLWHG .LQJGRP DQG *HUPDQ\ KDYH VHHQ KHDGV RI
JRYHUQPHQWV VLW IRU RYHU D GHFDGH HYHQ LQ UHFHQW \HDUV 2UWHJD 6DDYHGUD
QHYHU ZDV DOORZHG WR VLQJOHKDQGHGO\ SLFN DOO PHPEHUV RI &6- DQG &RQVHMR
6XSUHPR (OHFWRUDO &6(  7KH )6/1 QHYHU VLQFH  KDG VXFK D PDMRULW\
WKDW LW FRXOG KDYH GRQH WKDW E\ LWVHOI :KHQ WKH PHPEHUV RI WKHVH WZR
LQVWLWXWLRQV ZKR ZHUH VHQW WKHUH E\ WKH /LEHUDOV FKRVH WR YRWH LQ IDYRU RI
DFFHSWLQJ D UHHOHFWLRQ , FDQ RQO\ VHH WKUHH SRVVLEOH UHDVRQV 3RVVLEO\ WKH\
:KDW LV WR EH GRQH" 

DUH FRUUXSW DQG VROG WKHPVHOYHV WR WKH )6/1 $QRWKHU SRVVLELOLW\ LV WKDW
WKH )6/1 PDQDJHG WR WULFN WKH /LEHUDOV LQWR WKLQNLQJ VRPH FDQGLGDWH ZDV D
/LEHUDO ZKHQ UHDOO\ KH ZDV D 6DQGLQLVWD $OWHUQDWLYHO\ WKH )6/1 6DQGLQLVWDV
ZHUH FRUUHFW LQ WKHLU DVVHVVPHQW RI WKH OHJDO VLWXDWLRQ WKH SURKLELWLRQ
RI UXQQLQJ WZLFH ZDV LQGHHG XQFRQVWLWXWLRQDO DQG WKH SURWHVWV E\ WKH
RSSRVLWLRQ DUH MXVW PDGH WR LQVWLJDWH SUREOHPV IRU WKH JRYHUQPHQW 1RQH
RI WKHVH FDVHV ORRN YHU\ JRRG IRU WKH RSSRVLWLRQ
7KH PRVW LPSRUWDQW FRQFOXVLRQ , KDYH UHDFKHG LV DW OHDVW IRU QRZ
1LFDUDJXD LV D FRXQWU\ ZLWK DQ H[WUHPHO\ KLJK DPRXQW RI IUHHGRP RI
VSHHFK ² QRW PDWFKHG E\ DQ\ RWKHU FRXQWU\ NQRZQ WR PH 7KH JUHDW
QXPEHU RI SHRSOH ZLOOLQJ WR YROXQWHHU LQIRUPDWLRQ IRU WKLV ERRN³PDQ\
WLPHV ZLWKRXW NQRZLQJ PH RU DQ\WKLQJ DERXW PH LPPHGLDWHO\ UHDG\ WR
VD\ H[DFWO\ ZKDW WKH\ WKRXJKW RI WKHLU JRYHUQPHQW³ZDV TXLWH LPSUHVVLYH
6XUH PDQ\ RI WKHP ZHUH VRPHZKDW FRQFHUQHG ZLWK KRZ WKH\ WKHPVHOYHV
ZRXOG ORRN %XW ZKHWKHU WKH JRYHUQPHQW OLNHG ZKDW WKH\ VDLG DOPRVW
QHYHU VHHPHG WR EH DQ LVVXH 7KDW LV VRPHWKLQJ , KDYH QRW H[SHULHQFHG LQ
DQ\ )LUVW :RUOG FRXQWU\ RI WKH ZRUOG

:KDW LV WR EH GRQH"
,W LV VHOGRP FOHDU KRZ DQ DQWKURSRORJLFDO VWXG\ FDQ EH XVHIXO IRU WKRVH
LQYROYHG LQ D FHUWDLQ VRFLDO FRQVWHOODWLRQ PRUH WKDQ JLYLQJ WKH LQIRUPDQWV
ZKR UHDG D VWXG\ DFFHVV WR LQIRUPDWLRQ DERXW KRZ WKHLU YLHZV DQG WKH
SHUVSHFWLYHV RI WKRVH WKH\ OLYH DQG ZRUN ZLWK ZKLFK WKH\ RWKHUZLVH ZRXOG
QRW KDYH KDG DFFHVV WR
$QRWKHU DVSHFW VWXGLHV RI UHYROXWLRQDU\ PRYHPHQWV LQ 7KLUG :RUOG
FRXQWULHV PD\ EH XVHIXO IRU LV WKH VHFUHW VHUYLFHV DQG JHQHUDO LQWHOOLJHQFH
FRPPXQLWLHV RI )LUVW :RUOG FRXQWULHV ZKR VHHN WR TXHOO WKHVH PRYHPHQWV
:KLOH , EHOLHYH , KDYH IRXQG TXLWH D ORW RI LQIRUPDWLRQ ZKLFK PD\ EH LQWHU
HVWLQJ WR WKHVH , KDYH WULHG WR ZULWH DURXQG WKLV PDWHULDO DQG QRW LQFOXGH
DQ\WKLQJ RI YDOXH KDUPIXO WR WKH 6DQGLQLVWD PRYHPHQW
2YHU WKH DOPRVW  \HDUV , ZRUNHG RQ WKLV SURMHFW ²  , KDG DPSOH
RSSRUWXQLW\ WR VSHDN ZLWK 6DQGLQLVWDV DW GLIIHUHQW OHYHOV DQG RI GLIIHUHQW
W\SHV )6/1 DQG 056 DQG KDYH FRQWLQXRXVO\ WULHG WR FRQWULEXWH ZLWK P\
DQDO\VLV DQG FULWLFLVP EDVHG XSRQ WKH JUHDW DPRXQW RI LQWHUYLHZV DQG
LQIRUPDO FRQYHUVDWLRQV , KDG ZLWK 1LFDUDJXDQV 7KH YDOXH RI WKLV VWXG\
ZULWLQJ SURFHVV IRU WKH 6DQGLQLVWD PRYHPHQW , EHOLHYH OLHV PDLQO\ LQ WKHVH
FRPPHQWV ZKLFK YDULRXV GHFLVLRQ PDNHUV FDQ UHDFW WR LI WKH\ VR GHVLUH
 &RQFOXVLRQ
 &JMQQ?PW
$&  7KH $OWHUQDWLYD SRU HO &DPELR $OWHUQDWLYH IRU &KDQJH LV D VPDOO 1LFD
UDJXDQ SDUW\ ZKLFK LQ WKH  HOHFWLRQV ZDV RQH RI VHYHUDO VPDOO
SDUWLHV WKDW IRUPHG SDUW RI DQ DOOLDQFH OHG E\ WKH )UHQWH 6DQGLQLVWD
GH /LEHUDFLyQ 1DFLRQDO )6/1 

$/%$  7KH $OWHUQDWLYD %ROLYDULDQD SDUD ORV SXHEORV GH QXHVWUD $PpULFD %ROL
YDULDQ $OWHUQDWLYH IRU WKH SHRSOH RI RXU $PHULFD LV DQ DOWHUQDWLYH
WUDGH DQG FXOWXUDO QHWZRUN EHWZHHQ 1LFDUDJXD &XED 9HQH]XHOD
(FXDGRU %ROLYLD $QWLJXD DQG %DUEXGD WKH &RPPRQZHDOWK RI 'R
PLQLFD DQG 6DLQW 9LQFHQW DQG WKH *UHQDGLQHV

$OEDQLVD  $/%$ GH 1LFDUDJXD 6$ $/%$ RI 1LFDUDJXD LV D 1LFDUDJXDQ

SULYDWHO\ KHOG FRPSDQ\ WKDW KDQGOHV WKH 1LFDUDJXDQ VLGH RI WKH HFR
QRPLF SDUWV RI WKH $OWHUQDWLYD %ROLYDULDQD SDUD ORV SXHEORV GH QXHVWUD
$PpULFD $/%$ DJUHHPHQW *RYHUQPHQWFULWLFV FODLP WKDW WKLV LV D
PDMRU VRXUFH RI HQULFKPHQW RI WKH OHDGHUVKLS RI WKH )UHQWH 6DQGLQLVWD
GH /LEHUDFLyQ 1DFLRQDO )6/1  3URJRYHUQPHQW FRPPHQWDWRUV RIWHQ
FODLP WKDW $OEDQLVD KDV EHHQ VHW XS WR FLUFXPYHQW WKH /LEHUDO PDMRU
LW\ LQ SDUOLDPHQW DQG UHVWULFWLRQV VHW E\ WKH ,QWHUQDWLRQDO 0RQHWDU\
)XQG ,0) RQ WKH XVH RI SXEOLF IXQGV

$/1  7KH $OLDQ]D /LEHUDO 1LFDUDJHQVH /LEHUDO 1LFDUDJXDQ $OOLDQFH LV D

/LEHUDO SDUW\ IRUPHG LQ  E\ (GXDUGR 0RQWHDOHJUH 5LYDV DQG
RWKHU PHPEHUV RI WKH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/& ZKR
ZHUH LQ GLVDJUHHPHQW ZLWK WKH OHDGHUVKLS RI WKH 3/&

$01/$(  7KH $VRFLDFLyQ GH 0XMHUHV 1LFDUDJHQHV /XLVD $PDQGD (VSLQR]D

$VVRFLDWLRQ RI 1LFDUDJXDQ :RPHQ /XLVD $PDQGD (VSLQR]D LV D
IDPRXV 6DQGLQLVWD ZRPHQ RUJDQL]DWLRQ

$7& $VRFLDFLyQ GH 7UDEDMDGRUHV GHO &DPSR $VVRFLDWLRQ RI 5XUDO :RUNHUV


 *ORVVDU\

%$1,& %DQFR 1LFDUDJHQVH GH ,QGXVWULD \ &RPHUFLR 1LFDUDJXDQ %DQN RI ,Q

GXVWU\ DQG &RPPHUFH

%'  7KH %DQFD 'HPRFUDWLFD 'HPRFUDWLF %HQFK ZDV IRUPHG E\ (GXDUGR

0RQWHDOHJUH 5LYDV DIWHU WKH  PXQLFLSDO HOHFWLRQV 0RQWHDOHJUH
KDG UXQ DV D FDQGLGDWH IRU WKH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/&
EXW GHFLGHG WR IRUP KLV RZQ IUDFWLRQ LQ WKH QDWLRQDO SDUOLDPHQW DQG
FLW\ FRXQFLO RI 0DQDJXD DIWHU WKH HOHFWLRQV

%,6  7KH %DQN IRU ,QWHUQDWLRQDO 6HWWOHPHQWV LV DQ LQWHUQDWLRQDO EDQN WKDW

FRQWUROV ORDQV WR FHQWUDO EDQNV

%5'  7KH %XQGHVUHSXEOLN 'HXWVFKODQG )HGHUDO 5HSXEOLF RI *HUPDQ\ ZDV

WKH RIILFLDO QDPH RI :HVW *HUPDQ\ XQWLO  VLQFH WKHQ WKH RIILFLDO
QDPH RI WKH HQWLUH FXUUHQW *HUPDQ VWDWH

&  6HH &RUGRED

FDXGLOOR  $ FDXGLOOR VWURQJPDQ LV D WHUP XVHG WR GHVFULEH D W\SH RI

SROLWLFDOPLOLWDU\ OHDGHU LQ /DWLQ $PHULFD &DXGLOORV DUH DXWKRULWDU
LDQ DQG WKH\ DUH RIWHQ VHHQ DV D IDWKHUILJXUH E\ WKH SXEOLF

&'6V  7KH &RPLWpV GH 'HIHQVD 6DQGLQLVWD &RPPLWWHH IRU 'HIHQVH RI 6DQ

GLQLVPR ZHUH DQ RUJDQL]DWLRQ LQ WKH V ZKLFK IRUPHG ORFDO
FRPPLWWHHV LQ QHLJKERUKRRGV RI DOO RI 1LFDUDJXD GXULQJ WKH V
ZKLFK DLPHG WR KLQGHU &RQWUDV IURP VDERWDJH &ULWLFV FODLP WKDW LW
DW WLPHV DFWHG OLNH WKH (DVW *HUPDQ 6WDDWVVLFKHUKHLW 6WD6L 

&(3$/  7KH &RPLVLyQ (FRQyPLFD SDUD $PpULFD /DWLQD \ HO &DULEH (FRQRPLF

&RPPLVVLRQ IRU /DWLQ $PHULFD DQG WKH &DULEEHDQ LV D 8QLWHG 1D
WLRQV ,QVWLWXWLRQ WKDW LV NQRZQ IRU LWV DGRSWLRQ RI 'HSHQGHQF\ 7KHRU\
LQ WKH \HDUV DIWHU WKH 6HFRQG :RUOG :DU ::,, 

&,$  7KH &HQWUDO ,QWHOOLJHQFH $JHQF\ LV DQ DJHQF\ RI WKH 86 JRYHUQPHQW

ZKLFK DLPV WR FROOHFW IRUHLJQ LQWHOOLJHQFH

&,35(6  7KH &HQWUR SDUD OD 3URPRFLyQ OD ,QYHVWLJDFLyQ \ HO 'HVDUROOR 5XUDO

\ 6RFLDO &HQWHU IRU 3URPRWLRQ ,QYHVWLJDWLRQ DQG 5XUDO DQG 6RFLDO
'HYHORSPHQW LV DQ 1*2 ZKLFK KDV ZRUNHG FORVH ZLWK WKH FXUUHQW
)UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO JRYHUQPHQW LQ GHVLJQLQJ VHY
HUDO RI LWV DJULFXOWXUHUHODWHG SROLFLHV &,35(6 LV DOOHJHGO\ PDLQO\
 

FRPSULVHG RI 6DQGLQLVWDV ZKR VWRSSHG ZRUNLQJ LQ WKH VWDWH DIWHU

WKH HOHFWLRQV

&/6V  7KH &RQVHMRV GH /LGHUD]JR 6DQGLQLVWD 6DQGLQLVWD /HDGHUVKLS &RXQFLOV

PDNH RXW WKH ORZHVW OHYHO RI OHDGHUVKLS ZLWKLQ WKH )UHQWH 6DQGLQLV
WD GH /LEHUDFLyQ 1DFLRQDO &/6V FDQ EH IRXQG LQ QHLJKERUKRRGV DOO
WKURXJKRXW WKH FRXQWU\

&0($  7KH &RXQFLO RI 0XWXDO (FRQRPLF $VVLVWDQFH ZDV WKH HFRQRPLF QHW
ZRUN RI WKH 6RYLHW 8QLRQ DQG LWV DOOLHV

&213(6  7KH &RQVHMR 1DFLRQDO GH 3ODQLILFDFLyQ (FRQyPLFD \ 6RFLDO 1DWLRQDO

&RXQFLO IRU (FRQRPLF DQG 6RFLDO 3ODQQLQJ LV D 1LFDUDJXDQ JRYHUQ
PHQW LQVWLWXWLRQ

&RQWUDV  7KH &RQWUDV &RXQWHUUHYROXWLRQDU\ LV D WHUP WKDW GHVLJQDWHV

DOO WKH JURXSV ZKR WRRN XS DUPV DJDLQVW WKH 6DQGLQLVWDGRPLQDWHG
JRYHUQPHQW LQ WKH V 1RZDGD\V IRUPHU &RQWUDV PRUH RIWHQ XVH
WKH WHUP 5HVLVWHQFLD DERXW WKHPVHOYHV

&RUGRED LV WKH RIILFLDO FXUUHQF\ RI 1LFDUDJXD 7KH H[FKDQJH UDWH WR WKH

86 'ROODU KDV EHHQ DURXQG  LQ WKH SHULRG ²

&3&V  7KH &RQVHMRV GH 3RGHU &LXGDGDQR &RXQFLOV IRU &LWL]HQ 3RZHU PDNH
RXW DQ RUJDQL]DWLRQ ZKLFK DLPV WR RUJDQL]H GLUHFW GHPRFUDF\ LQ
1LFDUDJXD ,W ZDV VWDUWHG E\ 3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD
RI WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 LQ 

&3R&  7KH &RPPXQLVW 3DUW\ RI &KLQD KDV EHHQ WKH UXOLQJ SDUW\ RI WKH 3HR
SOH·V 5HSXEOLF RI &KLQD WKH ODUJHU RI WKH WZR &KLQDV VLQFH  ,W
EHDUV WKH QDPH ¶FRPPXQLVW· IRU KLVWRULF UHDVRQV 9HU\ IHZ UDGLFDOV
RXWVLGH RI &KLQD VHH LW DV UHSUHVHQWLQJ D SURJUDP WKDW ZRXOG OHDG
WRZDUG FRPPXQLVP

&6(  7KH &RQVHMR 6XSUHPR (OHFWRUDO +LJKHVW (OHFWLRQ &RXQFLO LV D 1LFDUD

JXDQ JRYHUQPHQW LQVWLWXWLRQ ZKLFK RUJDQL]HV HOHFWLRQV

&6- &RUWH 6XSUHPD GH -XVWLFLD +LJKHVW &RXUW RI -XVWLFH

&881²/HyQ &HQWUR 8QLYHUVLWDULR GH OD 8QLYHUVLGDG 1DFLRQDO²/HyQ 8QLYHUVLW\

&HQWHU RI WKH 1DWLRQDO 8QLYHUVLW\ /HyQ
 *ORVVDU\

&:  7KH &ROG :DU ZDV WKH PLOLWDU\ VWDOHPDWH EHWZHHQ WKH 6RYLHW 8QLRQ
DQG LWV DOOLHV ZLWK WKH 8QLWHG 6WDWHV LQ LWV DOOLHV LQ WKH SHULRG EHWZHHQ
WKH HQG RI WKH 6HFRQG :RUOG :DU ::,, LQ  DQG WKH )DOO RI WKH
%HUOLQ :DOO LQ 

''5  7KH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN *HUPDQ 'HPRFUDWLF 5HSXEOLF

ZDV (DVW *HUPDQ\ WKH 6RYLHWDOOLHG SDUW RI *HUPDQ\ GXULQJ WKH
WLPH RI WKH &ROG :DU &: XS XQWLO 

'1  'LVQRUWH LV RQH RI WZR FRPSDQLHV WKDW 8QLyQ )HQRVD 6$ FUHDWHG LQ
RUGHU WR ELG IRU WKH DGPLQLVWUDWLRQ RI WKH 1LFDUDJXDQ HOHFWULFLW\
QHW

'5&$)7$  7KH 'RPLQLFDQ 5HSXEOLF²&HQWUDO $PHULFDQ )UHH 7UDGH $JUHHPHQW

LV D IUHH WUDGH DJUHHPHQW EHWZHHQ WKH 8QLWHG 6WDWHV DQG *XDWHPDOD
(O 6DOYDGRU 1LFDUDJXD +RQGXUDV &RVWD 5LFD DQG WKH 'RPLQLFDQ
5HSXEOLF 1LFDUDJXD MRLQHG WKH '5&$)7$ LQ 

'6  'LVVXU LV RQH RI WZR FRPSDQLHV WKDW 8QLRQ )HQRVD 6$ FUHDWHG LQ RUGHU
WR ELG IRU WKH DGPLQLVWUDWLRQ RI WKH 1LFDUDJXDQ HOHFWULFLW\ QHW

(1$%$6  7KH (PSUHVD 1LFDUDJHQVH GH $OLPHQWRV %iVLFRV 1LFDUDJXDQ &RP

SDQ\ IRU %DVLF )RRG ,WHPV LV D VWDWHRZQHG FRPSDQ\ XVHG LQ WKH
V WR RUJDQL]H FKHDS IRRG IRU SRRU 1LFDUDJXDQV LQ WLPHV RI FULVLV
,W LV DJDLQ XVHG E\ WKH FXUUHQW JRYHUQPHQW

(3=  $Q ([SRUW 3URGXFWLRQ =RQH LV DQ DUHD ZKLFK LV UHJXODWHG E\ VSHFLDO

ODZV XQIDYRUDEOH WR ODERU XQLRQV DQG ZLWK VSHFLDOO\ ORZ WD[ FRGHV
(3=V KDYH LQ UHFHQW \HDUV EHHQ HVWDEOLVKHG LQ PDQ\ WKLUG ZRUOG
FRXQWULHV ZLWK WKH DLP WR EULQJ FDVK WR WKH FRXQWU\

)$'&$1,&  7KH )XQGDFLyQ SDUD OD $XWRQRPtD \ HO 'HVDUROOR GH OD &RVWD $WOiQ

WLFD GH 1LFDUDJXD )RXQGDWLRQ IRU WKH $XWRQRP\ DQG 'HYHORSPHQW
RI WKH $WODQWLF FRDVW RI 1LFDUDJXD LV DQ 1*2 WKDW ZRUNV ZLWK GHYHO
RSPHQW SURMHFWV RQ WKH 1LFDUDJXDQ $WODQWLF FRDVW

)'-  7KH )UHLH 'HXWVFKH -XJHQG )UHH *HUPDQ <RXWK ZDV WKH VRFLDOLVW
\RXWK RUJDQL]DWLRQ RI WKH 'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5

),'(*  7KH )XQGDFLyQ ,QWHUQDFLRQDO SDUD HO 'HVDItR (FRQyPLFR *OREDO ,QWHU

QDWLRQDO )RXQGDWLRQ IRU WKH *OREDO (FRQRPLF &KDOOHQJHV LV D 1L
 

FDUDJXDQ 1*2 IRUPHG LQ  ,W KDV D VHOIGHFODUHG JRDO RI FUH

DWLQJ DOWHUQDWLYH HFRQRPLF GHYHORSPHQW SODQV IRU 1LFDUDJXD WKDW
IRFXV XSRQ FRPELQLQJ HFRQRPLF JURZWK ZLWK GLPLQLVKLQJ HFRQRPLF
GLIIHUHQFHV DQG NHHSLQJ LQ PLQG TXHVWLRQV RI GHPRFUDF\ JHQGHU
DQG WKH HQYLURQPHQW 7KH DQQXDO VWXG\ RQ HFRQRPLF GHYHORSPHQW
DQG SRYHUW\ ),'(* KDV SXEOLVKHG LQ  DQG  ZHUH ILQDQFHG
WKURXJK 'XWFK DQG 6ZLVV DLG

ILUVW ZRUOG  6HH WKLUG ZRUOG

)/1  7KH )UHQWH GH /LEHUDFLyQ 1DFLRQDO 1DWLRQDO /LEHUDWLRQ )URQW ZDV WKH
QDPH RI WKH RI )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 ²

)0/1  7KH )UHQWH )DUDEXQGR 0DUWt SDUD OD /LEHUDFLyQ 1DFLRQDO )DUDEXQGR

0DUWt 1DWLRQDO /LEHUDWLRQ )URQW LV D VLVWHUSDUW\ RI WKH )UHQWH 6DQGL
QLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 LQ (O 6DOYDGRU

IRFR VWUDWHJ\  7KH IRFR VWUDWHJ\ IRFXV VWUDWHJ\ LV D VWUDWHJ\ WKDW RULJL
QDWHG ZLWK (UQHVWR *XHYDUD DQG WKH &XEDQ UHYROXWLRQ ,WV FRQFHUQ
ZDV KRZ WR RUJDQL]H IRU D UHYROXWLRQ ,QVWHDG RI ZDLWLQJ WR VWDUW
DQ LQVXUUHFWLRQ XQWLO RQH KDG RUJDQL]HG D ODUJH DPRXQW RI IDFWRU\
ZRUNHUV LQ WKH FLWLHV WR EH DEOH WR FRQIURQW WKH PLOLWDU\ DQG SROLWLFDO
OHDGHUVKLS RI WKH FRXQWU\ WKURXJK WKH PDVV RI SHRSOH LQYROYHG LQ
VWHDG WKH VWUDWHJ\ VWDWHG WKDW RQH VKRXOG LQLWLDOO\ DWWDFN LQ FHUWDLQ
VWUDWHJLF SRLQWV ZLWK VPDOO DQG PRELOH SDUDPLOLWDU\ JXHUULOOD XQLWV
7KHVH DWWDFNV VKRXOG WKHQ GHYHORS LQWR WKH ¶IRFXV· RI WKH PRYHPHQW
RI GLVFRQWHQW ZLWK WKH UHJLPH DPRQJ WKH JHQHUDO SRSXODWLRQ 7KH
ZD\ WKH VWUDWHJ\ VHHPV WR KDYH EHHQ XQGHUVWRRG D ORW RI SODFHV LQ
FOXGLQJ 1LFDUDJXD DW OHDVW LQLWLDOO\ ZDV WKDW DWWDFNV QHHGHG WR EH
RUJDQL]HG DQG ODXQFKHG IURP WKH FRXQWU\VLGH

)6/1  7KH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO 6DQGLQLVWD 1DWLRQDO

/LEHUDWLRQ )URQW KDV EHHQ WKH PDLQ 6DQGLQLVWD SDUW\ VLQFH 

*'3  7KH *URVV 'RPHVWLF 3URGXFW LV WKH PDUNHW YDOXH RI DOO ILQDO JRRGV DQG
VHUYLFHV SURGXFHG ZLWKLQ D FRXQWU\ LQ D JLYHQ SHULRG

*1  7KH *XDUGLD 1DFLRQDO 1DWLRQDO *XDUG ZDV WKH 1LFDUDJXDQ PLOLWDU\

WKDW ZDV WUDLQHG E\ WKH 8QLWHG 6WDWHV LQ WKH ODWH V DQG XSRQ
ZKLFK WKH 6RPR]D GLFWDWRUVKLS EXLOW LW VWUHQJWK XQWLO 
 *ORVVDU\

*1,  7KH *URVV 1DWLRQDO ,QFRPH LV WKH *URVV 'RPHVWLF 3URGXFW *'3  SOXV
LQFRPH UHFHLYHG IURP DEURDG PLQXV SD\PHQWV PDGH WR UHFHLYHUV
DEURDG ZLWKLQ D FHUWDLQ SHULRG

*3  7KH *UXSR 3HOODV 3HOODV *URXS LV WKH FROOHFWLRQ RI EXVLQHVVHV EHORQJ

LQJ WR RQH RI WKH ULFKHVW 1LFDUDJXDQ IDPLOLHV

*33  7KH *XHUUD 3RSXODU 3URORQJDGD 3URORQJHG 3RSXODU :DU ZDV RQH RI
WKUHH LGHRORJLFDO WHQGHQFLHV ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW RI WKH
ODWHU V ZKLFK HPSKDVL]HG WKH QHHG WR RUJDQL]H SHDVDQW IDUPHUV

,&-  7KH ,QWHUQDWLRQDO &RXUW RI -XVWLFH LQ 'HQ +DDJ 1HWKHUODQGV LV WKH PDLQ
MXGLFLDO SDUW RI WKH 8QLWHG 1DWLRQV DQG LWV GHFLVLRQV DUH LQ WKHRU\
ELQGLQJ

,'%  7KH ,QWHU$PHULFDQ 'HYHORSPHQW %DQN LV D EDQN WKDW KDV JLYHQ PXOWL
ODWHUDO ORDQV WR FRXQWULHV LQ WKH &DULEEHDQ DQG /DWLQ $PHULFD VLQFH


,((3$ 7KH ,QWHUQDWLRQDO (PHUJHQF\ (FRQRPLF 3RZHUV $FW LV D  86 ODZ

ZKLFK JLYHV WKH 86 3UHVLGHQW WKH ULJKW WR UHJXODWH FRPPHUFH LQ WKH
FDVH RI DQ HPHUJHQF\

,(6  7KH ,QVWLWXWR GH (VWXGLR GHO 6DQGLQLVPR ,QVWLWXWH IRU WKH 6WXG\ RI 6DQ
GLQLVPR ZDV DQ LQVWLWXWH WKDW H[LVWHG LQ WKH V DQG ZKLFK KDG DQ
DLP RI LQYHVWLJDWLQJ DQG GRFXPHQWLQJ HYHU\WKLQJ DYDLODEOH UHODWHG
WR $XJXVWR 1LFROiV &DOGHUyQ 6DQGLQR

,0)  7KH ,QWHUQDWLRQDO 0RQHWDU\ )XQG LV D EDQN WKDW JLYHV PXOWLODWHUDO ORDQV
ZKLFK LV NQRZQ IRU LWV KDUVK FRQGLWLRQV RI SULYDWL]DWLRQ WRZDUGV
LQGHEWHG FRXQWULHV

,1,)20  7KH ,QVWLWXWR 1LFDUDJHQVH GH )RPHQWR 0XQLFLSDO 1LFDUDJXDQ ,Q

VWLWXWH IRU 0XQLFLSDO 'HYHORSPHQW LV DQ LQVWLWXWH ZKRVH PLVVLRQ LW
LV WR DLG ORFDO JRYHUQPHQWV LQ DFKLHYLQJ GHYHORSPHQW DQG LQGHSHQ
GHQFH

,166 ,QVWLWXWR 1LFDUDJHQVH GH 6HJXULGDG 6RFLDO 1LFDUDJXDQ ,QVWLWXWH IRU

6RFLDO 6HFXULW\

,6$  7KH ,QJHQLR 6DQ $QWRQLR 6DQ $QWRQLR 3ODQW LV 1LFDUDJXD·V ODUJHVW
VXJDU SODQWDWLRQ ZKLFK EHORQJV WR 1LFDUDJXD 6XJDU (VWDWHV /LPLWHG
ZKLFK LQ WXUQ LV SDUW RI WKH *UXSR 3HOODV *3 
 

-6  7KH -XYHQWXG 6DQGLQLVWD 6DQGLQLVWD <RXWK LV WKH \RXWK RUJDQL]DWLRQ

RI WKH )6/1

ODWLIXQGLR  $ ODWLIXQGLR LV D ODUJH IDUP RI RYHU  KHFWDUHV ,W LV SDUW RI D

YHU\ FRPPRQ VWUXFWXUH RI DJULFXOWXUH LQ /DWLQ $PHULFD

0$*)25  7KH 0LQLVWHULR $JURSHFXDULR \ )RUHVWDO 0LQLVWU\ RI $JULFXOWXUH

DQG )RUHVWU\ KDV EHHQ WKH QDPH RI WKH PLQLVWU\ GHDOLQJ ZLWK DJUL
FXOWXUH VLQFH  ,W XQGHUZHQW PDQ\ DGPLQLVWUDWLYH FKDQJHV IRU
WKH SDVW  GHFDGHV

0&&$  7KH 0HUFDGR &RP~Q &HQWURDPHULFDQR &RPPRQ &HQWUDO $PHULFDQ

0DUNHW LV D  WUDGH DJUHHPHQW EHWZHHQ *XDWHPDOD +RQGXUDV
(O 6DOYDGRU 1LFDUDJXD DQG &RVWD 5LFD 7KH PDUNHW ZDV LQ SDUW QRQ
RSHUDWLRQDO GXULQJ WKH V

0,&(  7KH 0LQLVWHULR GH &RPHUFLR ([WHULRU 0LQLVWU\ RI )RUHLJQ 7UDGH ZDV

JLYHQ UHVSRQVLELOLWLHV WR FRQWURO IRUHLJQ WUDGH GXULQJ WKH V

0,1(' 0LQLVWHULR GH (GXFDFLyQ 0LQLVWU\ RI (GXFDWLRQ

PLQLIXQGLR  $ PLQLIXQGLR LV D VPDOO IDUP RI XQGHU  KHFWDUHV ,W LV SDUW RI

D YHU\ FRPPRQ VWUXFWXUH RI DJULFXOWXUH LQ /DWLQ $PHULFD

0,16$ 0LQLVWHULR GH 6DOXG 0LQLVWU\ RI +HDOWK

0S1  7KH 0RYLPLHQWR SRU 1LFDUDJXD 0RYHPHQW IRU 1LFDUDJXD LV D ULJKW

ZLQJ 1*2 WKDW RUJDQL]HV SURWHVW PDUFKHV XQGHU WKH EDQQHU ¶SUR
GHPRFUDF\· DV WKH\ FODLP WKDW WKH FXUUHQW JRYHUQPHQW LV DQWLGH
PRFUDWLF

0S56  7KH 0RYLPLHQWR SRU HO 5HVFDWH GHO 6DQGLQLVPR 0RYHPHQW IRU 5HVFXH
RI 6DQGLQLVPR LV D JURXS RI 6DQGLQLVWDV ZKR DUH QRW KDSS\ ZLWK WKH
FRQWURO RI 3UHVLGHQW -RVp 'DQLHO 2UWHJD 6DDYHGUD RI WKH )UHQWH 6DQ
GLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1  'XULQJ WKH \HDUV ² WKH\
IRUPHG DQ DOOLDQFH ZLWK RU ZHUH SDUW RI WKH 0RYLPLHQWR 5HQRYDGRU
6DQGLQLVWD 056  'LIIHUHQW IURP WKH 056 WKH PHPEHUV RI WKH 0S56
KDYH D JRDO RI WDNLQJ SRZHU LQ WKH )6/1 7KH\ DUH VHHQ DV VWDQGLQJ
WR WKH OHIW RI WKH 056 LQ HFRQRPLF TXHVWLRQV

056  7KH 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD 0RYHPHQW IRU 6DQGLQLVWD 5HQ

RYDWLRQ LV D SROLWLFDO SDUW\ IRUPHG LQ  ZKLFK KDV JLYHQ XS RQ
 *ORVVDU\

FODVVZDU DV SDUW RI LWV SURJUDP DQG VHHV LWVHOI LQ D WUDGLWLRQ ZLWK

(XURSHDQ VRFLDO GHPRFUDWLF SDUWLHV ,W FODLPV WR EH PRUH GHPRFUDWLF
WKDQ WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 DQG WR EH LQ
IDYRU RI WKH HVWDEOLVKPHQW RI D ULJKW RI WKHUDSHXWLF DERUWLRQ

1*2  1RQJRYHUQPHQWDO RUJDQL]DWLRQ LV D WHUP XVXDOO\ XVHG IRU RUJDQL]D

WLRQV LI WKH\ ZRUN RQ D QRQSURILW EDVLV DQG GR VRPH ZRUN WKDW XQGHU
RWKHU FLUFXPVWDQFHV FRXOG KDYH EHHQ GRQH E\ D JRYHUQPHQW HQWLW\

2(3  7KH 2ILFLQD GH eWLFD 3~EOLFD 2IILFH RI 3XEOLF (WKLFV LV D JRYHUQPHQW

LQVWLWXWLRQ ZKLFK DLPV WR PRQLWRU FRUUXSWLRQ ZLWKLQ WKH SXEOLF
VHFWRU

3'96$  3HWUyOHRV GH 9HQH]XHOD 6 $ 3HWUROHXP RI 9HQH]XHOD LV WKH VWDWH

RZQHG RLO FRPSDQ\ RI 9HQH]XHOD

3HWURFDULEH LV D WUHDW\ EHWZHHQ FRXQWULHV RI WKH &DULEHDQ 6RXWK $PHULFD

DQG &HQWUDO $PHULFD DOO RI ZKLFK DUH DFFHVVLEOH E\ ZDWHU ZLWK 9H
QH]XHOD WR FROODERUDWH RQ HQHUJ\ LVVXHV DQG REWDLQ RLO DW GLVFRXQWHG
SULFHV 3HWURFDULEH KDV VRPH GLIIHUHQW PHPEHUV WKDQ WKH $OWHUQDWLYD
%ROLYDULDQD SDUD ORV SXHEORV GH QXHVWUD $PpULFD $/%$ DQG PHPEHUVKLS
VHHPV WR KDYH OHVV LGHRORJLFDO LPSOLFDWLRQV WKDQ ZKDW PHPEHUVKLS
RI WKH $/%$ PHDQV $W WLPHV WKHUH VHHPV WR EH VRPH FRQIXVLRQ DV
WR ZKLFK WUHDW\ LV EHLQJ XVHG EHWZHHQ FRXQWULHV ZLWK GXDO PHPEHU
VKLS LQ $/%$ DQG 3HWURFDULEH &XUUHQW PHPEHUV RI 3HWURFDULEH DUH
$QWLJXD DQG %DUEXGD +RQGXUDV %DKDPDV -DPDLFD %HOLFH 1LFDUD
JXD &XED 'RPLQLFDQ 5HSXEOLF 7KH &RPPRQZHDOWK RI 'RPLQLFD
6DQ &ULVWREDO DQG 1LHYHV *UDQDGD 6DQ 9LFHQWH DQG WKH *UDQDGLQDV
*XDWHPDOD 6DQWD /XFtD *X\DQD 6XULQDPH +DLWL DQG 9HQH]XHOD

3/&  7KH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD /LEHUDO &RQVWLWXWLRQDOLVW 3DUW\

KDV EHHQ WKH PDLQ /LEHUDO SDUWLHV VLQFH WKH ODWH V

3/,  7KH 3DUWLGR /LEHUDO ,QGHSHQGLHQWH ,QGHSHQGHQW /LEHUDO 3DUW\ LV D

/LEHUDO SDUW\ ZKLFK LV PRVWO\ NQRZQ IRU KDYLQJ EHHQ IRUPHG LQ RS
SRVLWLRQ WR WKH 6RPR]DUHJLPH LQ  (GXDUGR 0RQWHDOHJUH 5LYDV
FDOOHG IRU KLV VXSSRUWHUV WR MRLQ WKLV SDUW\ DIWHU WKH  PXQLFLSDO
HOHFWLRQV

333 ,QW   ,QWHUQDWLRQDO 'ROODUV DUH QRW D UHDO FXUUHQF\ ,W LV D PHDVXUH

PHQW XVHG E\ LQWHUQDWLRQDO RUJDQL]DWLRQV 7KH YDOXH RI  333 ,QW 
 

LQ DQ\ FRXQWU\ LV GHILQHG DV WKH DPRXQW RI ORFDO FXUUHQFLHV WKDW

KDV WKH VDPH SXUFKDVLQJ SRZHU DV 86' LQ WKH 8QLWHG 6WDWHV :+2
 

35,  7KH 3DUWLGR 5HYROXFLRQDULR ,QVWLWXFLRQDO ,QVWLWXWLRQDO 5HYROXWLRQDU\

3DUW\ LV D SDUW\ LQ 0H[LFR ZKLFK KHOG WKH SUHVLGHQF\ EHWZHHQ WKH
V DQG WKH \HDU  ,W LV NQRZQ DPRQJVW OHIWLVWV DV D SROLWLFDO
SDUW\ ZKLFK VWDUWHG DV LGHDOLVWLF DQG UDGLFDO DQG HQGHG DV FRUUXSW
DQG FRQVHUYDWLYH

351  7KH 3DUWLGR 5HVLVWHQFLD 1LFDUDJHQVH 3DUW\ RI WKH 1LFDUDJXDQ 5HVLV

WDQFH LV D SDUW\ ZKLFK UHSUHVHQWV WKRVH ZKR ZHUH &RQWUDV LQ WKH
V

361  7KH 3DUWLGR 6RFLDOLVWD 1LFDUDJHQVH 1LFDUDJXDQ 6RFLDOLVW 3DUW\ ZDV

XS WR WKH IRXQGLQJ RI WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO
)6/1 WKH SDUW\ RI PRVW 1LFDUDJXDQ UDGLFDOV 'XULQJ WKLV SHULRG LW
KHOG FRQWDFW ZLWK WKH 6RYLHW 8QLRQ DQG VHYHUDO RI WKH ODWHU PHPEHUV
RI WKH )6/1 VWDUWHG WKHLU SROLWLFDO FDUHHU LQ WKH 361 'XULQJ WKH 
LQVXUUHFWLRQ SDUWV RI WKH )6/1 FRRSHUDWHG ZLWK 361 ,Q  WKH
361 IRUPHG SDUW RI WKH DQWL6DQGLQLVWD RSSRVLWLRQ JURXS 8QLGDG
1LFDUDJHQVH 2SRVLWRUD 812 

5$$1  7KH 5HJLyQ $XWyQRPD GHO $WOiQWLFR 1RUWH $XWRQRPRXV 5HJLRQ RI

WKH $WODQWLF 1RUWK LV D UHJLRQ ERUGHULQJ WKH QRUWKHUQ SDUW RI WKH
$WODQWLF FRDVW ZKLFK HQMR\V FHUWDLQ ULJKWV RI SROLWLFDO DXWRQRP\
IURP WKH DGPLQLVWUDWLRQ LQ 0DQDJXD ,W ZDV HVWDEOLVKHG LQ  EXW
WKH DXWRQRP\ KDV QRW EHHQ UHVSHFWHG DW DOO WLPHV VLQFH

5$$6  7KH 5HJLyQ $XWyQRPD GHO $WOiQWLFR 6XU $XWRQRPRXV 5HJLRQ RI WKH
$WODQWLF 6RXWK LV D UHJLRQ ERUGHULQJ WKH PLGVRXWKHUQ $WODQWLF
FRDVW ZKLFK HQMR\V FHUWDLQ ULJKWV RI SROLWLFDO DXWRQRP\ IURP WKH
DGPLQLVWUDWLRQ LQ 0DQDJXD ,W ZDV HVWDEOLVKHG LQ  EXW WKH DX
WRQRP\ KDV QRW EHHQ UHVSHFWHG DW DOO WLPHV VLQFH

5HVLVWHQFLD 5HVLVWDQFH LV DQRWKHU WHUP IRU &RQWUDV SUHIHUUHG E\ PDQ\

IRUPHU &RQWUD ILJKWHUV

UHYROXWLRQ  6HH 6DQGLQLVWD UHYROXWLRQ

 *ORVVDU\

UHYROXWLRQDU\ LQVXUUHFWLRQ  7KH UHYROXWLRQDU\ LQVXUUHFWLRQ LV 6DQGLQLVWD

WHUPLQRORJ\ WKH ZDU EHWZHHQ 6DQGLQLVWDV DQG 6RPR]D·V IRUFHV XS WR
WKH SRLQW RI WKH WULXPSK RI WKH UHYROXWLRQ 6HH DOVR 6DQGLQLVWD UHYROXWLRQ

URWRQGD URXQGDERXW  7KH URXQGDERXWV RI 0DQDJXD ZHUH FRQVWUXFWHG

LQ WKH V DQG KDYH REWDLQHG VWUDWHJLF LPSRUWDQFH IRU SROLWLFDO
JURXSV ZKR WU\ WR FRQWURO WKH FDSLWDO SK\VLFDOO\

6DQGLQLVWD UHYROXWLRQ  7KH 6DQGLQLVWD UHYROXWLRQ KDV LQ WKH 6DQGLQLVWD

YLHZ JRQH RQ VLQFH WKH VWDUW RI WKH 6DQGLQLVWD PRYHPHQW 7KH VWDUW
LV SXW VRPHZKHUH DIWHU  DQG EHIRUH  DQG D ORW EXW QRW DOO
6DQGLQLVWDV VHH WKH UHYROXWLRQ DV VWLOO FRQWLQXLQJ 7KRVH ZKR GR QRW
VHH LW DV VWLOO JRLQJ RQ PRVWO\ EHOLHYH WKDW WKH UHYROXWLRQ HQGHG LQ
WKH ODWHU V RU ZLWK WKH HOHFWRUDO GHIHDW LQ  7KH 6DQGLQLVWD
XQGHUVWDQGLQJ RI WKLV WHUP LV DW WLPHV FRQWUDU\ WR WKH WHUPLQRORJ\
XVHG E\ PDQ\ IRUHLJQHUV ZKR XVH LW RQO\ WR GHILQH WKH DFWLRQV LQ
WKH \HDU  WKDW OHG WR WKH RYHUWKURZ RI WKH 6RPR]D GLFWDWRUVKLS
DQG XS WR WKH SRLQW RI 6DQGLQLVWD WDNHRYHU 7KH SRLQW RI WDNHRYHU
RI SRZHU LV LQ WKH 6DQGLQLVWD WHUPLQRORJ\ FDOOHG WKH WULXPSK RI WKH
UHYROXWLRQ 7KH ZDU EHWZHHQ 6DQGLQLVWDV DQG 6RPR]D UHJLPH DUH
FDOOHG WKH UHYROXWLRQDU\ LQVXUUHFWLRQ , KDYH FKRVHQ WR VWLFN WR WKH
WHUPV DV WKH\ DUH XVHG E\ WKRVH 6DQGLQLVWDV ZKR VHH WKH UHYROXWLRQ
DV VWLOO LQ SURFHVV

6$3  6WUXFWXUDO $GMXVWPHQW 3URJUDPV DUH SURJUDPV E\ WKH ,QWHUQDWLRQDO 0RQ

HWDU\ )XQG ,0) WKDW DUH WR JRYHUQ WKH SROLWLFV RI LQGHEWHG FRXQWULHV
6$3V DUH QRWRULRXV IRU RUGHULQJ SULYDWL]DWLRQV RI SXEOLFO\ RZQHG
JRRGV

6('  7KH 6R]LDOLVWLVFKH (LQKHLWVSDUWHL 'HXWVFKODQGV 6RFLDOLVW 8QLW\ 3DUW\

RI *HUPDQ\ ZDV D SDUW\ JRYHUQLQJ WKH 'HXWVFKH 'HPRNUDWLVFKH 5H
SXEOLN ''5 XQWLO  7KH 6(' ZDV VWDUWHG E\ &RPPXQLVWV DQG
6RFLDOGHPRFUDWV DIWHU WKH 6HFRQG :RUOG :DU ::,, 

6,0$6  6HUYLFLR GH ,QIRUPDFLyQ 0HVRDPHULFDQR VREUH $JULFXOWXUD 6RVWHQLEOH

0HVRDPHULFDQ ,QIRUPDWLRQ 6HUYLFH DERXW 6XVWDLQDEOH $JULFXOWXUH
LV D 0DQDJXDEDVHG 1*2 DGYLVLQJ DERXW VXVWDLQDEOH DJULFXOWXUH DQG
WKH XVH RI RSHQ VRXUFH VRIWZDUH WR DLG WKH DJULFXOWXUH VHFWRU

6WD6L  7KH 6WDDWVVLFKHUKHLW 6WDWH 6HFXULW\ ZDV WKH VHFUHW SROLFH RI WKH
'HXWVFKH 'HPRNUDWLVFKH 5HSXEOLN ''5  7KH 6WD6L LV PDLQO\ NQRZQ IRU
 

LWV SROLFLHV RI H[FHVVLYH VS\LQJ RQ WKH SRSXODWLRQ RI WKH ''5 ZKLFK

FUHDWHG DQ RYHUDOO FOLPDWH RI GLVWUXVW

WKHUDSHXWLF DERUWLRQ LV DERUWLRQ LQ FDVH RQO\ HLWKHU WKH OLIH RI WKH PRWKHU
RU WKH IHWXV FDQ EH VDYHG $ ULJKW IRU DERUWLRQ XQGHU WKHVH FLUFXP
VWDQFHV H[LVWHG IRU  \HDUV LQ WKH 1LFDUDJXDQ FRQVWLWXWLRQ XQWLO LW
ZDV UHPRYHG LQ 

WKLUG ZRUOG  7KH WKLUG ZRUOG ZDV RULJLQDOO\ SDUW RI PXFKXVHG PRGHO
WKDW GLYLGHG RI WKH ZRUOG RI FRXQWULHV WKDW EHORQJHG WR WKH ILUVW
ZRUOG ZKLFK ZHUH UHODWLYHO\ ULFK DQG DOOLHG ZLWK WKH 8QLWHG 6WDWHV
FRXQWULHV WKDW EHORQJHG WR WKH VHFRQG ZRUOG ZKLFK ZHUH SDUW RI RU
YHU\ FORVH DOOLHV RI WKH 6RYLHW 8QLRQ DQG VRPHZKDW ZHDOWK\ DQG
WKLUG ZRUOG FRXQWULHV ZKLFK ZHUH IRUPDOO\ QRW DOOLHG ZLWK HLWKHU
RQH RI WKH WZR EORFNV DQG YHU\ SRRU 7KHUH DUH KRZHYHU VRPH
SDUWV WKDW DUH XQFOHDU DERXW WKLV ² IRU H[DPSOH 1LFDUDJXD ZDV DOOLHG
ZLWK ILUVW WKH 8QLWHG 6WDWHV DQG WKHQ WKH 6RYLHW 8QLRQ \HW ZDV
DW DOO WLPHV FDWHJRUL]HG DV SDUW RI WKH WKLUG ZRUOG &XED RQ WKH
RWKHU KDQG ZDV VHHQ DV SDUW RI WKH VHFRQG ZRUOG 6LQFH WKH HQG
RI WKH RI WKH 6RYLHW 8QLRQ WKH FRQFHSW KDV EHHQ HYHQ OHVV FOHDU
,Q PXFK RI /DWLQ $PHULFD WKHUH LV DQ XQGHUVWDQGLQJ WKDW DOO /DWLQ
$PHULFDQ FRXQWULHV DUH SDUW RI D OHVV GHYHORSHG WKLUG ZRUOG DQG
WKDW ZHVWHUQ (XURSHDQ FRXQWULHV DQG WKH 8QLWHG 6WDWHV PDNH RXW
WKH ILUVW ZRUOG $GGLWLRQDOO\ VRPH DUJXH WKDW $IULFD UHSUHVHQWV D
IRXUWK ZRUOG RI FRXQWULHV WKDW DUH QRW GHYHORSLQJ 7KHUH VHHPV WR
EH QR FOHDU XQGHUVWDQGLQJ DV WR ZKHWKHU D VHFRQG ZRUOG VWLOO H[LVWV
DQG ZKDW FRXQWULHV ZRXOG EHORQJ WR LW

73  7KH 7HQGHQFLD 3UROHWDULD 3UROHWDULDQ 7HQGHQF\ ZDV RQH RI WKUHH

LGHRORJLFDO WHQGHQFLHV ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW RI WKH ODWHU
V ZKLFK HPSKDVL]HG WKH QHHG WR RUJDQL]H IDFWRU\ ZRUNHUV

WULXPSK RI WKH UHYROXWLRQ  7KH WULXPSK RI WKH UHYROXWLRQ LV LQ 6DQGLQLVWD

WHUPLQRORJ\ WKH SRLQW ZKHQ WKH 6RPR]D UHJLPH ZDV GHIHDWHG E\
6DQGLQLVWDV LQ VXPPHU  6HH DOVR 6DQGLQLVWD UHYROXWLRQ

77  7KH 7HQGHQFLD 7HUFHULVWD 7KLUG >:D\@ 7HQGHQF\ ZDV RQH RI WKUHH

LGHRORJLFDO WHQGHQFLHV ZLWKLQ WKH 6DQGLQLVWD PRYHPHQW RI WKH ODWHU
V ZKLFK HPSKDVL]HG WKH QHHG WR RUJDQL]H DFURVV FODVV GLYLGHV
DQG IRU DFWLQJ UDWKHU WKDQ VWXG\LQJ WKHRULHV
 *ORVVDU\

8$%-2 8QLYHUVLGDG $XWyQRPD ´%HQLWR -XiUH]µ GH 2D[DFD ´%HQLWR -XiUH]µ

$XWRQRPRXV 8QLYHUVLW\ RI 2D[DFD

8&$  7KH 8QLYHUVLGDG &HQWURDPHULFDQD &HQWUDO $PHULFDQ 8QLYHUVLW\ LV

WKH PRVW IDPRXV SULYDWH XQLYHUVLW\ RI 0DQDJXD 7KH 8&$ UHFHLYHV
SXEOLF IXQGLQJ

8GH0 /HyQ 8QLYHUVLGDG GH 0DQDJXD /HyQ 8QLYHUVLW\ RI 0DQDJXD /HyQ

FDPSXV

8)  7KH 8QLyQ )HQRVD 6$ LV D 6SDQLVK FRPSDQ\ ZKLFK KDV D FRQWUDFW

WR UXQ WKH 1LFDUDJXDQ HOHFWULFLW\ QHW 7KH 8) LV XQLYHUVDOO\ KDWHG
E\ 1LFDUDJXDQV ZKR FODLP WKDW WKH 8) KDV EHHQ VK\LQJ DZD\ IURP
QHFHVVDU\ LQYHVWPHQWV LQ RUGHU WR PDNH D ODUJHU SURILW

81$* 8QLyQ 1DFLRQDO GH $JULFXOWRUHV \ *DQDGHURV 1DWLRQDO 8QLRQ RI )DUP

HUV DQG 5DQFKHUV

81$ 7KH 8QLyQ 1LFDUDJHQVH $PHULFDQD LV D ULJKWZLQJ RUJDQL]DWLRQ RSHU

DWLQJ RXW RI 0LDPL

81$1  7KH 8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD 1DWLRQDO $XWRQR

PRXV 8QLYHUVLW\ RI 1LFDUDJXD LV WKH PRVW SUHVWLJLRXV SXEOLF XQLYHU
VLW\ LQ 1LFDUDJXD

81$1²/HyQ  7KH 8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD /HyQ 1D

WLRQDO $XWRQRPRXV 8QLYHUVLW\ RI 1LFDUDJXD /HyQ FDPSXV LV WKH
XQLW RI WKH 8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD LQ /HyQ
7KH 81$1²/HyQ HQMR\V FHUWDLQ LQVWLWXWLRQDO LQGHSHQGHQFH IURP
WKH PDLQ XQLYHUVLW\ LQ 0DQDJXD

81(1  7KH 8QLyQ 1DFLRQDO GH (VWXGLDQWHV GH 1LFDUDJXD 1DWLRQDO 6WXGHQW

8QLRQ RI 1LFDUDJXD LV WKH FHQWUDO RUJDQL]DWLRQ UHSUHVHQWLQJ DOO
1LFDUDJXDQ VWXGHQWV

81(6&2 8QLWHG 1DWLRQV (GXFDWLRQ 6FLHQFH DQG &XOWXUH 2UJDQL]DWLRQ

8QLWHG 6WDWHV LV D VKRUW IRUP RI 8QLWHG 6WDWHV RI $PHULFD

8QLWHG 6WDWHV $PHULFDQ DV DQ DGMHFWLYH PHDQV VRPHWKLQJ SHUWDLQLQJ WR

WKH 8QLWHG 6WDWHV RI $PHULFD ,W FDQ DOVR PHDQ FLWL]HQ RI WKH 8QLWHG
6WDWHV RI $PHULFD 7KLV LV D WHUP , KDYH GHFLGHG WR XVH P\VHOI DV WKH
 

WHUP PRVWO\ XVHG ¶$PHULFDQ· LV FRQIXVLQJ LQ WKDW LW PD\ DOVR GHQRWH

WKH LQKDELWDQWV RI DOO WKH $PHULFDV RU WKLQJV UHODWHG WR DQ\ SDUW RI
WKH $PHULFDV

812  7KH 8QLGDG 1LFDUDJHQVH 2SRVLWRUD 8QLWHG 1LFDUDJXDQ 2SSRVLWLRQ

ZDV DQ HOHFWRUDO DOOLDQFH RI  SDUWLHV PRVWO\ IURP WKH SROLWLFDO
ULJKW ZKR ZRQ WKH  SUHVLGHQWLDO HOHFWLRQV

86&  7KH 86 &RQJUHVV LV WKH SDUOLDPHQW RI WKH 8QLWHG 6WDWHV FRQVLVWLQJ

RI WKH WZR FKDPEHUV 86 +RXVH RI 5HSUHVHQWDWLYHV 86+5 DQG WKH 86
6HQDWH

86'  7KH 86 'ROODU LV WKH RIILFLDO FXUUHQF\ RI WKH 8QLWHG 6WDWHV RI $PHULFD
,W LV H[WHQVLYHO\ XVHG LQ &HQWUDO $PHULFD (O 6DOYDGRU XVHV WKH 86'
DV RIILFLDO FXUUHQF\ ,Q 1LFDUDJXD SURIHVVLRQDOV DV ZHOO DV RWKHUV
ZLWK KLJK LQFRPH RIWHQWLPHV UHFHLYH WKHLU ZDJHV LQ 86' UDWKHU
WKDQ WKH QDWLRQDO FXUUHQF\ &RUGRED

86' DUH 86' DGMXVWHG IRU LQIODWLRQ WR  OHYHOV XVLQJ WKH 86 8UEDQ
&RQVXPHU 3ULFH ,QGH[ 86&3,8 

86+5  7KH 86 +RXVH RI 5HSUHVHQWDWLYHV LV RQH RI WZR FKDPEHUV RI WKH 86

&RQJUHVV 86&  (OHFWLRQV DUH VHSDUDWH IURP HOHFWLRQV IRU 3UHVLGHQW
RI WKH 8QLWHG 6WDWHV DQG DW WLPHV VRPH SROLWLFDO GLVDJUHHPHQW H[LVWV
EHWZHHQ WKH WZR

86&3,8  7KH 86 8UEDQ &RQVXPHU 3ULFH ,QGH[ LV D PHDVXUH RI LQIODWLRQ IRU

DOO XUEDQ FRQVXPHUV LQ WKH 86 2IILFLDO VWDWLVWLFV RYHU WKH 863&,8
DUH UHOHDVHG DQQXDOO\ E\ WKH 86 'HSDUWPHQW RI /DERU %XUHDX RI /DERU
6WDWLVWLFV

9F(  9DPRV FRQ (GXDUGR /HW·V JR ZLWK (GXDUGR LV D VXSSRUWHU JURXS

DURXQG (GXDUGR 0RQWHDOHJUH 5LYDV WKH  SUHVLGHQWLDO FDQGL
GDWH RI WKH $OLDQ]D /LEHUDO 1LFDUDJHQVH $/1 DQG  FDQGLGDWH IRU
PD\RU RI 0DQDJXD RI WKH 3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD 3/& ZKR
DIWHU WKH  IRUPHG WKH %DQFD 'HPRFUDWLFD %' DPRQJVW FLW\ FRXQ
FLO PHPEHUV DQG WKHQ DVNHG KLV VXSSRUWHUV WR MRLQ WKH 3DUWLGR /LEHUDO
,QGHSHQGLHQWH 3/,  9F( VHHPV WR EH XVHG IRU RUJDQL]LQJ SROLWLFDOO\
ZKHQHYHU 0RQWHDOHJUH LV QRW D PHPEHU RI DQRWKHU SDUW\
 *ORVVDU\

YRWR GXUR KDUG YRWH  $ 6DQGLQLVWD ZKR YRWHV IRU WKH )UHQWH 6DQGLQLVWD GH
/LEHUDFLyQ 1DFLRQDO )6/1 HYHQ ZKHQ KH GLVDJUHHV ZLWK WKH SROLWLFV
RI WKH OHDGHUVKLS LV FRXQWHG DV VRPHRQH JLYLQJ D YRWR GXUR

YRWR RFXOWR KLGGHQ YRWH  $ SHUVRQ ZKR GRHV QRW ZDQW WR GLVFORVH WR SROO
VWHUV ZKR KH YRWHG IRU DW HOHFWLRQV LV VHHQ DV SDUW RI WKH YRWR RFXOWR
DQG 1LFDUDJXDQ SROOVWHUV DVVXPH WKH SHUVRQ YRWHG IRU D GLIIHUHQW
SDUW\ WKDQ WKH )UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO )6/1 

:%  7KH :RUOG %DQN LV D IRXQGDWLRQ ZKLFK VSUHDGV ZHVWHUQ GHYHORSPHQW

SROLFLHV

::,  7KH )LUVW :RUOG :DU ZDV D ZDU EHWZHHQ PRVW PDMRU ZRUOG SRZHUV
² 

::,,  7KH 6HFRQG :RUOG :DU ZDV D ZDU EHWZHHQ PRVW PDMRU ZRUOG SRZHUV
² 
 !G@JGMEP?NFW

$EX/XJKRG 'HHQD ,  )DLOHG EX\RXW /DQG ULJKWV IRU &RQWUD YHWHUDQV
LQ SRVWZDU 1LFDUDJXD /DWLQ $PHULFDQ 3HUVSHFWLYHV    ² ,661
; ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fkej9y3y
$GOHU /RPQLW] /DULVVD DQG $QD 0HOQLFN  &KLOH·V SROLWLFDO FXOWXUH DQG
SDUWLHV $Q DQWKURSRORJLFDO H[SODQDWLRQ 7UDQV IURP WKH 6SDQLVK E\ %DU
EDUD 5REOHGR 1RWUH 'DPH ,QGLDQD 8QLYHUVLW\ RI 1RWUH 'DPH 3UHVV
,6%1 ;
$)3  1LFDUDJXD VXIUH PD\RU LPSDFWR SRU OD FULVLV ILQDQFLHUD >LQ 6SDQ
LVK@ (O 1XHYR 'LDULR $SU   ?iiT,ffrrrX2HMm2pQ/B`BQX+Q
KXMBfM+BQMH2bf98jeR DFFHVVHG -XQH   
$JHQFH )UDQFH3UHVVH  5XVVLD UHWDOLDWHV DJDLQVW *HRUJLD 6\GQH\ 0RUQ
LQJ +HUDOG $XJ   ?iiT,ffrrrXbK?X+QKXmfM2rbfrQ`H/f`mb
bB@`2iHBi2b@;BMbi@;2Q`;Bfkyy3fy3fy3fRkR3RjN
yde3yeX?iKH DFFHVVHG $SU   
$JXLOHUD $PSDUR D 0LQVD QR KDFH DERUWRV« VyOR WHUDSpXWLFRV >LQ
6SDQLVK@ (O 1XHYR 'LDULR -XO\   ?iiT,ffrrrX2HMm2pQ/B`BQX
+QKXMBfM+BQMH2bf8jejd DFFHVVHG -XO\   
³³³ E 0LQVD SUDFWLFD DERUWRV >LQ 6SDQLVK@ (O 1XHYR 'LDULR -XO\  
?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfM+BQMH2bf8j9eN
DFFHVVHG 0D\   
$OHJUtD &ODULEHO DQG ' - )ODNROO  1LFDUDJXD OD UHYROXFLyQ VDQGLQLVWD
8QD FUyQLFD SROtWLFD  ² >LQ 6SDQLVK@ VW HG (G (ULFN )ODNROO
$OHJUtD 0DQDJXD $QDPi (GLFLRQHV &HQWURDPHULFDQDV


 %LEOLRJUDSK\

$OLDQ]D%ROLYDULDQDRUJ HG  $OWHUQDWLYD %ROLYDULDQD SDUD ORV SXHEORV

GH QXHVWUD $PpULFD 7UDWDGR GH FRPHUFLR GH ORV SXHEORV ?iiT,ffr
rrXHBMx#QHBp`BMXQ`;f DFFHVVHG 0D\   
ÉOYDUH] /HRQRU  'HVJUDQH QR QHFHVLWD WUiPLWHV WpFQLFRV HQ &6( >LQ
6SDQLVK@ (O 1XHYR 'LDULR 2FW   ?iiT,ffrrrX2HMm2pQ/B`BQX
+QKXMBfTQHBiB+fjy9Nk DFFHVVHG 0D\   
$PLQ 6DPLU  &ODVV DQG QDWLRQ +LVWRULFDOO\ DQG LQ WKH FXUUHQW FULVLV 7UDQV
IURP WKH )UHQFK E\ 6XVDQ .DSORZ  1HZ <RUN DQG /RQGRQ 0RQWKO\
5HYLHZ 3UHVV ,6%1 
³³³  7KH VRFLDO PRYHPHQWV LQ WKH SHULSKHU\ $Q HQG WR QDWLRQDO
OLEHUDWLRQ" ,Q 7UDQVIRUPLQJ WKH UHYROXWLRQ 1HZ <RUN 0RQWKO\ 5HYLHZ
3UHVV ,6%1 
³³³  7KH OLEHUDO YLUXV 7UDQV IURP WKH )UHQFK E\ -DPHV + 0HPEUH]
/RQGRQ 3OXWR 3UHVV ,6%1 
$UpYDOR $OHPiQ 5D~O  /HQLQ &HUQD VXVWLWXLGR SRU 2UWHJD HQ OD 6HF
UHWDUtD GH 2UJDQL]DFLyQ GHO )6/1 >LQ 6SDQLVK@ /D -RUQDGD 0D\  
?iiT , f f rrr X HDQ`M/M2i X +QK f /B`BQ f `+?BpQ f kyR
RfKvQfRdfRXT?T DFFHVVHG $XJ   
$UULHQ -XDQ %  /LWHUDF\ LQ 1LFDUDJXD %DFNJURXQG SDSHU 8QLWHG 1D
WLRQV (GXFDWLRQDO 6FLHQWLILF DQG &XOWXUDO 2UJDQL]DWLRQ ?iiT,ffm
M2b/Q+XmM2b+QXQ`;fBK;2bfyyR9fyyR98NfR98Njd2XT/7
DFFHVVHG 0D\   
$VDPEOHD 1DFLRQDO GH 1LFDUDJXD  &RQVWLWXFLyQ GH 1LFDUDJXD >LQ 6SDQ
LVK@ 0DQDJXD ?iiT,ffrrrX+QMbiBimiBQMXQ`;f+QMbfMB+`
;mX?iKH DFFHVVHG -XQH   
³³³  &RQVWLWXFLyQ GH  FRQ ODV UHIRUPDV GH   \  >LQ 6SDQ
LVK@ 0DQDJXD ?iiT,ffT/#X;2Q`;2iQrMX2/mf*QMbiBimiBQM
bfLB+fMB+y8X?iKH DFFHVVHG -XQH   
%DEE )ORUHQFH (  $IWHU UHYROXWLRQ 0DSSLQJ JHQGHU DQG FXOWXUDO SROLWLFV LQ
QHROLEHUDO 1LFDUDJXD 8QLYHUVLW\ RI 7H[DV 3UHVV ,6%1 
³³³  5HF\FOHG 6DQGDOLVWDV )URP UHYROXWLRQ WR UHVRUWV LQ WKH QHZ
1LFDUDJXD $PHULFDQ $QWKURSRORJLVW 1HZ 6HULHV    ² ,661
 ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fj8edeR3
%LEOLRJUDSK\ 

%DKHQ ' DQG $ +HUQiQGH]  +XHOJD SHWUROHUD  >LQ 6SDQLVK@
HG )UHQWH GH 7UDEDMDGRUHV GH OD (QHUJtD GH 0p[LFR (QHUJtD   
?iiT , f f rrr X 7i2 @ 2M2`;B X Q`; f T/7 f 23j @ j9 @ jN X T/7
DFFHVVHG -DQ   
%DPELUUD 9DQLD  7HRUtD GH OD GHSHQGHQFLD 8QD DQWLFUtWLFD >LQ 6SDQLVK@
0p[LFR (GLFLRQHV (UD
%DQFR &HQWUDO GH 1LFDUDJXD  1LFDUDJXD HQ FLIUDV  >LQ 6SDQLVK@ VXU
YH\ %DQFR &HQWUDO GH 1LFDUDJXD ?iiT,ffrrrX#+MX;Q#XMBf2bi
/BbiB+bf2+QMQKB+bnMmH2bfMB+`;mn2Mn+B7`bf
kyyefLB+`;mn2Mn+B7`bnkyyeXT/7 DFFHVVHG 0D\   
³³³  1LFDUDJXD HQ FLIUDV  >LQ 6SDQLVK@ VXUYH\ %DQFR &HQWUDO GH
1LFDUDJXD ?iiT,ffrrrX#+MX;Q#XMBf2bi/BbiB+bf2+QMQK
B+bnMmH2bfMB+`;mn2Mn+B7`bfkyyefLB+`;mn2
Mn+B7`bnkyyeXT/7 DFFHVVHG 0D\   
³³³ D %DODQ]D GH SDJRV ² >LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT,
ffrrrX#+MX;Q#XMBf2bi/BbiB+bf2+QMQKB+bnMmH2bf
8ynMBQbf".f*TBimHQnoAA@a2+iQ`n2ti2`MQfoAA@RXT/7
DFFHVVHG -XQH   
³³³ E (VWDGtVWLFDV PDFURHFRQyPLFDV    9LLVHFWRU H[WHUQR
>LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT , f f #+M X ;Q# X MB f 2bi/BbiB
+b f 2+QMQKB+b n MmH2b f 8y n MBQb f ". f *TBimHQ n oA
A@ a2+iQ`n2ti2`MQfb2+iQ`n1ti2`MQXtHb DFFHVVHG -XQH 
 
³³³  1LFDUDJXD HQ FLIUDV  >LQ 6SDQLVK@ VXUYH\ %DQFR &HQWUDO GH
1LFDUDJXD ?iiT,ffrrrX#+MX;Q#XMBf2bi/BbiB+bf2+QMQK
B+bnMmH2bfMB+`;mn2Mn+B7`bfkyyefLB+`;mn2
Mn+B7`bnkyyeXT/7 DFFHVVHG 0D\   
%DUDQ 3DXO $OH[DQGHU  7KH SROLWLFDO HFRQRP\ RI JURZWK )LUVW 0RGHUQ
5HDGHU 3DSHUEDFN (GLWLRQ 1HZ <RUN DQG /RQGRQ 0RQWKO\ 5HYLHZ

%DUERVD )UDQFLVFR -  -XO\   VWXGHQW SURWHVW DQG VWDWH YLROHQFH
DV P\WK DQG PHPRU\ LQ /HyQ 1LFDUDJXD >LQ (QJOLVK@ 7KH +LVSDQLF
$PHULFDQ +LVWRULFDO 5HYLHZ  QR  0D\  SS ² ,661 
?iiT,ffrrrXDbiQ`XQ`;fbi#H2f9yke339y
 %LEOLRJUDSK\

%DUWRV]NR $OHNVDQGUD  ´,·P QRW VLFN , MXVW KDYH SDLQµ 6LOHQFH DQG
XQGHU FRPPXQLFDWLRQ RI LOOQHVV LQ D 1LFDUDJXDQ YLOODJH ,Q 3URELQJ
ERXQGDULHV WKH SDWLHQW HG $OHNVDQGUD %DUWRV]NR DQG 0DULD 9DFFDUHOOD
2[IRUG ,QWHUGLVFLSOLQDU\ 3UHVV
³³³  .XQQVNDS XWHQ YHUGL 2SSOHYHOVH RJ IRUVWnHOVH DY IRUPHOO XW
GDQQLQJ L 1LFDUDJXD >LQ 1RUZHJLDQ@ >LQ 1RUZHJLDQ@ $UWLFOH SHQGLQJ
SXEOLFDWLRQ
%HDFK\ %HQ  6ZLQGOLQJ WKH VLFN 7KH ,0) GHEW UHOLHI VKDP &RPPRQ
'UHDPVRUJ -DQ  ?iiT,ffrrrX+QKKQM/`2KbXQ`;fpB2rby
efyRkd@jkX?iKH DFFHVVHG 0D\   
%HUJHU 7LPR  ,QWHUYLHZ ZLU VLQG 6DQGLQLVWHQ XQG ZLU VLQG DXWRQRP
>LQ *HUPDQ@ -XQJH :HOW -DQ   
%HUULRV 5XEHQ  5HODWLRQV EHWZHHQ 1LFDUDJXD DQG WKH VRFLDOLVW FRXQ
WULHV -RXUQDO RI ,QWHUDPHULFDQ 6WXGLHV DQG :RUOG $IIDLUV    ²
,661 
%LGHUPDQ -DLPH  7KH GHYHORSPHQW RI FDSLWDOLVP LQ 1LFDUDJXD $
SROLWLFDO HFRQRPLF KLVWRU\ /DWLQ $PHULFDQ 3HUVSHFWLYHV    ²
,661 ; ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yyN
9@83ksWk3RN3jk9WkNRyWjRWj*dWjh.P*ALWj1kXyX*PWj"
k@o
%RFKRYH -HURHQ YDQ  'LUHFW GHPRFUDF\ LQ /HyQ 1LFDUDJXD &LWL]HQ
SDUWLFLSDWLRQ HPSRZHUPHQW DQG WKH LQIOXHQFH RQ WKH GHPRFUDWLF
FKDUDFWHU RI ORFDO JRYHUQDQFH 0DVWHU·V WKHVLV 8WUHFKW 8QLYHUVLW\
%RUJH 0DUWtQH] 7RPiV  &DUORV HO DPDQHFHU \D QR HV XQD WHQWDFLyQ 
&DUORV QRZ WKH GDZQ·V QR IRQG LOOXVLRQ >LQ VSDQLVKHQJOLVK@ 7UDQV 'LQDK
/LYLQJVWRQH 0DQFKHVWHU .$7$%$6,6  ,6%1 
³³³  2Q KXPDQ ULJKWV LQ 1LFDUDJXD ,Q 6DQGLQLVWDV VSHDN 6SHHFKHV
ZULWLQJV DQG LQWHUYLHZV ZLWK OHDGHUV RI 1LFDUDJXD·V UHYROXWLRQ HG %UXFH
0DUFXV WUDQV IURP WKH 6SDQLVK E\ ,QWHUFRQWLQHQWDO 3UHVV 1HZ <RUN
3DWKILQGHU 3UHVV 
%LEOLRJUDSK\ 

³³³  7KH VHFRQG DQQLYHUVDU\ RI WKH 6DQGLQLVWD 5HYROXWLRQ ,Q 6DQGLQ

LVWDV VSHDN 6SHHFKHV ZULWLQJV DQG LQWHUYLHZV ZLWK OHDGHUV RI 1LFDUDJXD·V
UHYROXWLRQ HG %UXFH 0DUFXV WUDQV IURP WKH 6SDQLVK E\ ,QWHUFRQWL
QHQWDO 3UHVV 1HZ <RUN 3DWKILQGHU 3UHVV 
³³³  /D SDFLHQWH LPSDFLHQFLD >LQ 6SDQLVK@ (GLFLyQ FRUUHJLGD GLV
PLQXLGD \ DXPHQWDGD 0DQDJXD  ,6%1 
%RVVHUW 7KRPDV -RKQ  1LFDUDJXDQ KHDOWK SROLF\ 7KH GLOHPPD RI
VXFFHVV 0HGLFDO $QWKURSRORJ\ 4XDUWHUO\    ² ,661 
?iiT,ffrrrXDbiQ`XQ`;fbi#H2fe93dN9
%RXUJRLV 3KLOLSSH  7KH 0LVNLWX RI 1LFDUDJXD SROLWLFL]HG HWKQLFLW\
$QWKURSRORJ\ 7RGD\  QR  $SU  ² ,661 ; ?iiT,ffHB
MFbXDbiQ`XQ`;fbB+B\bB+B4yke3@89ysWk3RN3ey9WkNkWj
kWj*9WjhJPLS1Wj1kXyX*PWj"k@J
%URZQ 7LPRWK\ &  5HYLHZ WKH 8QLWHG 6WDWHV DQG 1LFDUDJXD LQVLGH
WKH &DUWHU DQG 6DQGLQLVWD DGPLQLVWUDWLRQV -RXUQDO RI ,QWHUDPHULFDQ
6WXGLHV DQG :RUOG $IIDLUV    ² ,661  ?iiT,ffrr
rXDbiQ`XQ`;fbi#H2fReeRd3
%XNKDULQ 1LNRODƫ ,YDQRYLFK  (FRQRPLFV RI WKH WUDQVIRUPDWLRQ SHULRG
%HUJPDQ 3XEOLVKHUV 
%XUHDX RI /DERU 6WDWLVWLFV HG  /DERU IRUFH VWDWLVWLFV IURP WKH FXUUHQW
SRSXODWLRQ VXUYH\ :KHUH FDQ , ILQG WKH XQHPSOR\PHQW UDWH IRU SUH
YLRXV \HDUV" )HE  ?iiT,ffrrrX#HbX;Qpf+TbfT`2pnv`bX?iK
DFFHVVHG 0D\   
&DOGHUyQ 6DQGLQR $XJXVWR 1LFROiV  (O JHQHUDO %HQMDPtQ =HOHGyQ >LQ
6SDQLVK@ (O 1XHYR 'LDULR 2FW   ?iiT,ff`+?BpQX2HMm2pQ/B`
BQX+QKXMBfRNN3fQ+im#`2fy9@Q+im#`2@RNN3fQTBMBQMfQT
BMBQMRX?iKH DFFHVVHG 0D\   
³³³  7R DEROLVK WKH 0RQURH 'RFWULQH ?iiT,ff?BbiQ`vKii2`
bX;KmX2/mf/f9N33f
&DQDOHV 'LDQD  +RQGXUDV YXHOYH D 2($ FRQ HO YRWR HQ FRQWUD GH
(FXDGRU \ UHVHUYD GH 9HQH]XHOD >LQ 6SDQLVK@ $PpULFD /DWLQD HQ 0R
YLPLHQWR -XQH   ?iiT , f f rrr X HBM2i X Q`; f +iBp2 f 9dyy
yHM;42b DFFHVVHG -XQH   
 %LEOLRJUDSK\

&DVWUR ,YDQ  1LFDUDJXDQ SUHVLGHQW WR YLVLW ,UDQ LQ *DGGDIL·V 5HXWHUV

-XQH   ?iiT , f f rrrX `2mi2`b X +QKf `iB+H2 f kyyd f ye f y
9 f mb @ MB+`;m @ B`M @ B/laLyj8jR3kkyydyey9 DFFHVVHG
)HE   
&DVWUR 5X] )LGHO  8QD DQiOLVLV VREUH OD GHUURWD >LQ 6SDQLVK@ >LQ 6SDQ
LVK@ &KDS  LQ 1LFDUDJXD 6DQGLQLVWD ¢XQ FRQIOLFWR GH EDMD LQWHQVLGDG"
%\ )DELiQ (VFDOHQWH )RQW HG 5LFDUGR %DUQHW )UHL[DV ² )UDJ
PHQWV RI D VSHHFK JLYHQ DW WKH WK &RQJUHVV RI &XEDQ :RPHQ LQ WKH
&RQYHQWLRQ 3DODFH +DYDQQD +DYDQQD (GLWRULDO GH &LHQFLDV 6RFLDOHV
,QVWLWXWR &XEDQR GHO /LEUR  ,6%1 
&HQWUDO ,QWHOOLJHQFH $JHQF\ D 7KH :RUOG IDFWERRN 1LFDUDJXD ?iiT
b,ffrrrX+BX;QpfHB#``vfTm#HB+iBQMbfi?2@rQ`H/@7
+i#QQFf;2QbfMmX?iKH DFFHVVHG $SU   
³³³ E 7KH :RUOG IDFWERRN 'LVWULEXWLRQ RI IDPLO\ LQFRPH ² JLQL
LQGH[ ?iiTb,ffrrrX+BX;QpfHB#``vfTm#HB+iBQMbfi?2@
rQ`H/@7+i#QQFf7B2H/bfkRdkX?iKH DFFHVVHG 0D\   
³³³ F 7KH :RUOG IDFWERRN ,QIODWLRQ UDWH FRQVXPHU SULFHV  ?iiT
b,ffrrrX+BX;QpfHB#``vfTm#HB+iBQMbfi?2@rQ`H/@7
+i#QQFf7B2H/bfkyNkX?iKH DFFHVVHG 0D\   
&HQWUH IRU 5HVHDUFK RQ *OREDOL]DWLRQ HG  *HRUJLDQ DWWDFN DJDLQVW
6RXWK 2VVHWLD  DXJXVW  ?iiT,ffrrrX;HQ#H`2b2`+?X+
fBM/2tXT?T\+QMi2ti4pB/4ky88y DFFHVVHG $SU   
&KLOFRWH 5RQDOG +  7URWVN\ DQG GHYHORSPHQW WKHRU\ LQ /DWLQ $PHULFD
&ULWLFDO 6RFLRORJ\    ² GRLRyXRRddfyyRRjNkRyNj9jy83
?iiT,ff+`bXb;2Tm#X+QKf+QMi2Mifj8fefdRNX#bi`+i
&KLOGV 0DWW '  $Q KLVWRULFDO FULWLTXH RI WKH HPHUJHQFH DQG HYROXWLRQ
RI (UQHVWR &KH *XHYDUD·V IRFR WKHRU\ -RXUQDO RI /DWLQ $PHULFDQ 6WXGLHV
   ² ,661 ; ?iiT,ffrrrXDbiQ`XQ`;fbi#H
2fR83938
&ODUN 3DXO &RH -XQLRU  7KH 8QLWHG 6WDWHV DQG 6RPR]D ² $ UHYL
VLRQLVW ORRN :HVWSRUW 3UDHJHU
%LEOLRJUDSK\ 

&RQVHMR 6XSUHPR (OHFWRUDO HG  (VFUXWLQLR (OHFFLRQHV QDFLRQDOHV

 >LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT,ffrrrX2H2++BQM2bkyyeXM
2iXMBf2b+`miBMBQf;2M2`Hn/MX?iKH DFFHVVHG -DQ   
&XDGUD 1~xH] $UOHQ -DKRVND DQG &DUORV )RQVHFD 7HUiQ D /RJURV
GH OD 5HYROXFLyQ 6DQGLQLVWD HQ VX VHJXQGD HWDSD >,Q 6SDQLVK@ >LQ
6SDQLVK@ ,Q 7KH OHIW LQ JRYHUQPHQW /DWLQ $PHULFD DQG (XURSH FRPSDUHG
9RO ,, 6SHHFK VHQW E\ SULYDWH HPDLO E\ )RQVHFD 7HUiQ %UX[HOOHV 5RVD
/X[HPEXUJ )RXQGDWLRQ -XQH
³³³ E /RJURV GH OD 5HYROXFLyQ 6DQGLQLVWD HQ VX VHJXQGD HWDSD
SDUWH H[FOXLGD SRU IDOWD GH HVSDFLR >LQ 6SDQLVK@ >LQ 6SDQLVK@ SULYDWH
GRFXPHQW 3DUW RI SUHVHQWDWLRQ WKDW KDG WR EH FXW RXW GXH WR WLPH
FRQVWUDLQWV 6HQW E\ SULYDWH HPDLO E\ )RQVHFD 7HUiQ
&XHQFD $OHMDQGUR 0DUWtQH]  6DQGLQLVWD HFRQRPLFV LQ SUDFWLFH 7UDQV
IURP WKH 6SDQLVK E\ 1LFN &RRNH DQG +DPOHW 7UDQVODWLRQV :LWK D
IRUHZ E\ 5REHUWR 3L]DUUR %RVWRQ 6RXWK (QG 3UHVV ,6%1 
&XSSOHV -XOLH  2ZQHUVKLS DQG SULYDWLVDWLRQ LQ SRVWUHYROXWLRQDU\
1LFDUDJXD %XOOHWLQ RI /DWLQ $PHULFDQ 5HVHDUFK  QR  6HSW  ²
,661  ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yke
R@jy8yWk3RNNkyNWkNRRWjjWj*kN8WjPSASLWj1kXyX*PW
j"k@J
'LDULR *UDQPD  ,QVWDODQ HQ 1LFDUDJXD ORV &RQVHMRV GHO 3RGHU &LX
GDGDQR >LQ 6SDQLVK@ 'LDULR *UDQPD 'HF  
'LHWHULFK +HLQ]  (O VRFLDOLVPR GHO VLJOR [[L >LQ 6SDQLVK@ %RJRWD )XQGD
FLRQ 3DUD /D ,QYHVWLJDFLRQ < /D &XOWXUD
'LMNVWUD $ *HVNH  7HFKQRFUDF\ TXHVWLRQHG $VVHVVLQJ HFRQRPLF VWD
ELOLVDWLRQ LQ 1LFDUDJXD %XOOHWLQ RI /DWLQ $PHULFDQ 5HVHDUFK    ²
 ,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fjjjNRe
d
'RQDKXH -RKQ 0  ,QWHUQDWLRQDO RUJDQL]DWLRQV KHDOWK VHUYLFHV DQG
QDWLRQ EXLOGLQJ LQ 1LFDUDJXD 0HGLFDO $QWKURSRORJ\ 4XDUWHUO\ 1HZ 6H
ULHV    ² ,661  ?iiT,ffrrrXDbiQ`XQ`;fbi
#H2fe93e9k
 %LEOLRJUDSK\

(MpUFLWR GH 1LFDUDJXD  $QWHFHGHQWHV KLVWyULFRV >LQ 6SDQLVK@ >LQ 6SDQ

LVK@ ,Q  DxRV GH YLGD LQVWLWXFLRQDO ² 0DQDJXD (MpUFLWR GH
1LFDUDJXD ,6%1  ?iiT,ffrrrX2D2`+BiQXKB
HXMBf+QMi2MB/Qf`2H+BQM2b@Tm#HB+bfTm#HB++BQM2bf
/Q+b f K2KQ`B @ RNdN @ kyyN @ yke @ y9N X T/7 DFFHVVHG -DQ 
 
(QULTXH] /DXUD -  $JUDULDQ UHIRUP DQG FODVV FRQVFLRXVQHVV LQ 1LFDUDJXD
*DLQHVYLOOH 8QLYHUVLW\ 3UHVV RI )ORULGD
(TXLSR (QYtR  ¢FyPR YRWy 1LFDUDJXD" /RV UHVXOWDGRV HOHFWRUDOHV >LQ
6SDQLVK@ 5HYLVWD (QYtR 0DQDJXD  QR  $SU  ?iiT,ffrrrX2Mp
BQXQ`;XMBf`iB+mHQfekR DFFHVVHG )HE   
³³³  /D DPLVWDG GH (VWDGRV 8QLGRV FRQ HO JRELHUQR &KDPRUUR >LQ
6SDQLVK@ 5HYLVWD (QYtR 0DQDJXD  QR  2FW  ?iiT,ffrrrX2Mp
BQXQ`;XMBf`iB+mHQfe3d DFFHVVHG )HE   
(TXLSR (QYtR 1LWOiSDQ D 'DQLHO 2UWHJD SUHVLGHQWH 'HO SRGHU ¶GHVGH
DEDMR· DO JRELHUQR >LQ 6SDQLVK@ 5HYLVWD (QYtR 0DQDJXD  QR  1RY 
?iiT,ffrrrX2MpBQXQ`;XMBf`iB+mHQfj9R3 DFFHVVHG )HE 
 
³³³ E +HUW\ /HZLWHV QRZ D ´VSLULWXDO FDQGLGDWHµ >LQ 6SDQLVK@ 5H
YLVWD (QYtR 0DQDJXD  QR  -XO\  ?iiT,ffrrrX2MpBQXQ`;XM
Bf`iB+mHQfjjk9 DFFHVVHG -DQ   
(TXLSR &RUUHR  (O UHSOLJXH WiFWLFR D 0DVD\D 8QD OHFFLyQ GH DXGDFLD
>LQ 6SDQLVK@ HG 6FDUOHW &XDGUD :DWHUV &RUUHR GH 1LFDUDJXD QR 
-XQH²-XO\  ²
(TXLSR (QYtR 1LWOiSDQ  +RZ 1LFDUDJXDQV YRWHG 5HYLVWD (QYtR 0DQ
DJXD  QR  'HF  ?iiT,ffrrrX2MpBQXQ`;XMBf`iB+mHQfR
NNy DFFHVVHG )HE   
(XURSD 3UHVV  /D FRUWH VXSUHPD GH 1LFDUDJXD GD YtD OLEUH D OD UHHOHF
FLyQ GH 2UWHJD >LQ 6SDQLVK@ (O 3DLV 2FW   ?iiT,ffrrrX2HTB
bX+QKf`iB+mHQfBMi2`M+BQMHf*Q`i2famT`2KfLB+`
;mf/fpBfHB#`2f`22H2++BQMfP`i2;f2HT2TmBMifkyyN
Ryky2HT2TmBMin8fh2b DFFHVVHG -XQH   
%LEOLRJUDSK\ 

(YDQV *HRUJH  7KH GHDWKV RI 6RPR]D >LQ (QJOLVK@ :RUOG /LWHUDWXUH
7RGD\    SS ² ,661  ?iiT,ffrrrXDbiQ`XQ`;f
bi#H2f9yR8N9y3
(YHULQJKDP 0DUN  $JULFXOWXUDO SURSHUW\ ULJKWV DQG SROLWLFDO FKDQJH
LQ 1LFDUDJXD /DWLQ $PHULFDQ 3ROLWLFV DQG 6RFLHW\    ² ,661
; ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fjRddR99
)HGHUDO 5HVHDUFK 'LYLVLRQ  $ FRXQWU\ VWXG\ 1LFDUDJXD 7KH 812
HOHFWRUDO YLFWRU\ 7KH /LEUDU\ RI &RQJUHVV 'HF ?iiT , f f H+r2#
kXHQ+X;Qpf7`/f+bfMBiQ+X?iKH DFFHVVHG 0D\   
)LHOG /HV  3RVW6DQGLQLVWD HWKQLF LGHQWLWLHV LQ ZHVWHUQ 1LFDUDJXD
$PHULFDQ $QWKURSRORJLVW QG VHU  QR  -XQH  ² ,661
 ?iiT , f f HBMFb X DbiQ` X Q`; f bB+B \ bB+B 4 yyyk @
dkN9 W k3RNN3ye W kNk W jRyy W jk W j*9jR W jS1AAqL W j1k X
yX*PWj"k@C
)ORUHV -XGLWK  )RUR DQWtGRWR SDUD HO VRFLDOLVPR GHO VLJOR [[L >LQ 6SDQ
LVK@ /D 3UHQVD 0D\   ?iiT,ffrrrXHT`2MbX+QKXMBfkyRRf
y8fRkfTQHBiB+feykN8 DFFHVVHG -XQH   
)RQVHFD $PDGRU &DUORV  'HVGH OD FDUFHO \R DFXVR D OD GLFWDGXUD >LQ
6SDQLVK@ /HyQ 1LFDUDJXD ?iiT,ffrrrXbM/BMQpBp2XQ`;f+`
HQbf/2b/2H+`+2HX?iK DFFHVVHG -XQH   
³³³  1LFDUDJXD =HUR KRXU ,Q 6DQGLQLVWDV VSHDN 6SHHFKHV ZULWLQJV
DQG LQWHUYLHZV ZLWK OHDGHUV RI 1LFDUDJXD·V UHYROXWLRQ HG %UXFH 0DUFXV
WUDQV IURP WKH 6SDQLVK E\ 0LFKDHO 7DEHU DQG :LOO 5HLVQHU 1HZ <RUN
3DWKILQGHU 3UHVV 
)RQVHFD 7HUiQ &DUORV  (O SUR\HFWR UHYROXFLRQDULR HQ PDUFKD >LQ
6SDQLVK@ (O 1XHYR 'LDULR 'HF   ?iiT,ffrrrX2HMm2pQ/B`BQX+
QKXMBfp`B2//2bfjkyd DFFHVVHG -XQH   
³³³ D %DOVHURV \ PRMDGRV >LQ 6SDQLVK@ (O 1XHYR 'LDULR 'HF 
DFFHVVHG -XQH   
³³³ E &DQFLRQHV IORUHV \ EDQGHUDV >LQ 6SDQLVK@ (O 1XHYR 'LDULR
$XJ   ?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfQTBMBQMfkj9
j8 DFFHVVHG -XQH   
 %LEOLRJUDSK\

)RQVHFD 7HUiQ &DUORV F /D LQIDPLD SDVR D SDVR >LQ 6SDQLVK@ (O 1XHYR
'LDULR 'HF   ?iiT,ffBKT`2bQX2HMm2pQ/B`BQX+QKXMBfky
y3fRkfRdfQTBMBQMfNRed8 DFFHVVHG -XQH   
³³³ G 1R SDVDUiQ >LQ 6SDQLVK@ (O 1XHYR 'LDULR 1RY   ?iiT,
f f rrr X 2HMm2pQ/B`BQ X +QK X MB f QTBMBQM f jje9k DFFHVVHG
-XQH   
³³³ H 5HDOLGDGHV >LQ 6SDQLVK@ (O 1XHYR 'LDULR 1RY   ?iiT,ff
`+?BpQ X 2HMm2pQ/B`BQ X +QK X MB f kyy3 f RR f y3 f QTBMBQM
DFFHVVHG -XQH   
³³³ I 5HYROXFLyQ VRFLDOLVWD R UHIRUPLVPR VRFLDOGHPyFUDWD >LQ 6SDQ
LVK@ (O 1XHYR 'LDULR 'HF   ?iiT,ffrrrX2HMm2pQ/B`BQX+QKX
MBfQTBMBQMfj938R DFFHVVHG -XQH   
³³³ J =RUURV GHO PLVPR SLxDO >LQ 6SDQLVK@ (O 1XHYR 'LDULR -XO\  
?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfQTBMBQMfkR8jd DF
FHVVHG -XQH   
³³³ D (O IHOLFLVPR >LQ 6SDQLVK@ (O 1XHYR 'LDULR -DQ   ?iiT ,
f f rrr X 2HMm2pQ/B`BQ X +QK X MB f QTBMBQM f jdk8N DFFHVVHG
-XQH   
³³³ E /D GHPRFUDFLD FXEDQD >LQ 6SDQLVK@ (O 1XHYR 'LDULR -DQ  
?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfQTBMBQMfje9jy DF
FHVVHG -XQH   
³³³ D $ OD 9 ,QWHUQDFLRQDO 3DUD JOREDOL]DU OD OXFKD \ OD HVSHUDQ]D
>LQ 6SDQLVK@ HG 6FDUOHW &XDGUD :DWHUV &RUUHR GH 1LFDUDJXD QR 
'HFHPEHU ²-DQXDU\   ²
³³³ E ¢HV QHROLEHUDO HO JRELHUQR GHO )6/1" VL ORV SHUURV ODGUDQ HV
TXH FDEDOJDPRV >LQ 6SDQLVK@ >LQ 6SDQLVK@ 0D\  ?iiT,ffH`2Tm
#HB+X2bf7B`Kbf#HQ;bfBM/2tXT?Tf+`HQb7QMb2+fkyR
yfy8fy8fB2b@M2QHB#2`H@2H@;Q#B2`MQ@/2H@7bHM@bB@H
DFFHVVHG -XO\   
³³³ F 3RVLFLyQ GHO )6/1 UHVSHFWR DO WHPD GHO DERUWR \ RWURV DVSHFWRV
YLQFXODGRV FRQ WHPDV GH JpQHUR >LQ 6SDQLVK@ >LQ 6SDQLVK@ SULYDWH GRF
XPHQW 7DONLQJ SRLQWV XVHG LQ LQWHUQDWLRQDO FRQIHUHQFHV 5HFHLYHG
E\ SULYDWH HPDLO
%LEOLRJUDSK\ 

³³³ G 6HU R QR VHU UHYROXFLRQDULRV >LQ 6SDQLVK@ >LQ 6SDQLVK@ -XO\ 
?iiT,ffH`2Tm#HB+X2bf7B`Kbf#HQ;bfBM/2tXT?Tf+`H
Qb7QMb2+fkyRyfydfRRfb2`@Q@MQ@b2`@`2pQHm+BQM`BQb
DFFHVVHG -XO\   
)RQW )DELiQ (VFDOHQWH  1LFDUDJXD 6DQGLQLVWD ¢XQ FRQIOLFWR GH EDMD LQWHQ
VLGDG" >,Q 6SDQLVK@ (G 5LFDUGR %DUQHW )UHL[DV +DYDQQD (GLWRULDO GH
&LHQFLDV 6RFLDOHV ,QVWLWXWR &XEDQR GHO /LEUR ,6%1 
)RRG DQG $JULFXOWXUH 2UJDQL]DWLRQ RI WKH 8QLWHG 1DWLRQV HG  &RXQWU\
SURILOH IRRG VHFXULW\ LQGLFDWRUV &RXQWU\ 1LFDUDJXD ?iiT,ffrrrX
7QXQ`;f7BH2/KBMfi2KTHi2bf2bbf/Q+mK2Mibf7QQ/nb2
+m`BivnbiiBbiB+bf+QmMi`vnT`Q7BH2bf2M;fLB+`;mn
1XT/7 DFFHVVHG 0D\   
)XQGDFLyQ ,QWHUQDFLRQDO SDUD HO 'HVDItR (FRQyPLFR *OREDO  (QFXHVWD
GH KRJDUHV SDUD OD PHGLFLyQ GH OD SREUH]D HQ 1LFDUDJXD >LQ 6SDQLVK@ VXU
YH\ )XQGDFLyQ ,QWHUQDFLRQDO SDUD HO 'HVDItR (FRQyPLFR *OREDO ?i
iT,ff7B/2;XQ`;f7BH2bf/Q+fRk3jkNyRj8n_2bmHi/QbWk
y6A.1:WkykyyNr2#XT/7 DFFHVVHG 0D\   
³³³  ,QIRUPH GH UHVXOWDGRV GH OD HQFXHVWD GH KRJDUHV SDUD PHGLU OD SREUH]D
HQ 1LFDUDJXD >LQ 6SDQLVK@ VXUYH\ )XQGDFLyQ ,QWHUQDFLRQDO SDUD HO
'HVDItR (FRQyPLFR *OREDO -XQH  ?iiT,ff7B/2;XQ`;f7BH2bf/Q
+fRjyd8e3yjyn_2bmHi/QbWky6A.1:WkykyRyXT/7 DFFHVVHG
6HSW   
*DUFtD (UQHVWR  351 GHVDXWRUL]D D LQYDVRUHV GH WLHUUDV >LQ 6SDQLVK@
(O 1XHYR 'LDULR -XQH   ?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBf
M+BQMH2bfRNyd3 DFFHVVHG 0D\   
*DUFtD 1HU\  +DQ LPSRUWDGR  PLOORQHV GH JDORQHV >LQ 6SDQLVK@ (O
1XHYR 'LDULR 1RY   ?iiT,ffBKT`2bQX2HMm2pQ/B`BQX+QKX
MBfkyydfRRfRdfM+BQMH2bfe9yd8 DFFHVVHG -XQH   
*DUILHOG 5LFKDUG  5HYROXWLRQ DQG WKH 1LFDUDJXDQ KHDOWK V\VWHP
0HGLFDO $QWKURSRORJ\ 4XDUWHUO\    ² ,661  ?iiT,
ffrrrXDbiQ`XQ`;fbi#H2fe93dNR
*D\QRU 7LP  'DQLHO 2UWHJD 7LP *D\QRU LQ 1LFDUDJXD WDONV ZLWK RQH
RI WKH NH\ DUFKLWHFWV RI WKH 6DQGLQLVWD UHYROXWLRQ 1HZ ,QWHUQDWLRQDOLVW
-XO\ 
 %LEOLRJUDSK\

*HRUJH :DVKLQJWRQ 8QLYHUVLW\ HG  (GXDUGR 0RQWHDOHJUH 5LYDV ?ii

T,ffrrrX;rmX2/mf+HBf`2+2Min2p2MibfkyyefyeyeR8Wk
y@WkyJQMi2H2;`2Wky#BQXT/7 DFFHVVHG )HE   
*LOEHUW 'HQQLV  5HZULWLQJ KLVWRU\ 6DOLQDV =HGLOOR DQG WKH  WH[W
ERRN FRQWURYHUV\ 0H[LFDQ 6WXGLHV  (VWXGLRV 0H[LFDQRV    ²
,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fRy8kyRd
³³³  (PLOLDQR =DSDWD 7H[WERRN KHUR 0H[LFDQ 6WXGLHV  (VWXGLRV
0H[LFDQRV    ² ,661  ?iiT,ffrrrXDbiQ`XQ`
;fbi#H2fRy8kRdj
*RRUHQ +HQUL  2UWHJD IRU SUHVLGHQW 7KH UHOLJLRXV UHELUWK RI 6DQGLQ
LVPR LQ 1LFDUDJXD (XURSHDQ 5HYLHZ RI /DWLQ $PHULFDQ DQG &DULEEHDQ
6WXGLHV QR ²
*RXOG -HIIUH\ /  ¶IRU DQ RUJDQL]HG 1LFDUDJXD· 6RPR]D DQG WKH ODERXU
PRYHPHQW ² -RXUQDO RI /DWLQ $PHULFDQ 6WXGLHV  QR  1RY 
² ,661 ; ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\b
B+B4yykk@kResWk3RN3dRRWkNRNWjkWj*j8jWjWkdPLaW
j1kXyX*PWj"k@E
*UDHEHU 'DYLG  (SLORJXH WR WKH GLVDVWURXV RUGHDO RI  ?iiT,ff
rrrX?`i7Q`/@?rTX+QKf`+?Bp2bfjefyRyX?iKH DFFHVVHG
)HE   
*ULJVE\ :LOOLDP  ¢SRU TXp KD\ WDQ SRFD PRYLOL]DFLyQ VRFLDO" >,Q
6SDQLVK@ 5HYLVWD (QYtR 0DQDJXD  QR  -XO\  ?iiT,ffrrrX2Mp
BQXQ`;XMBf`iB+mHQfkN3y DFFHVVHG )HE   
*XQGHU )UDQN $QGUp  /D HVWUXFWXUD GH FODVHV HQ $PpULFD /DWLQD >LQ
6SDQLVK@ >LQ 6SDQLVK@ ,Q &ODVHV \ UHYROXFLyQ HQ $PpULFD /DWLQD HG $QGUp
*XQGHU )UDQN HW DO 0RQWHYLGHR 7DXUR
+DQHPDQQ 'U 8OULNH  1LFDUDJXD·V OLWHUDF\ FDPSDLJQ 81(6&2 5HSRUW
+DPEXUJ *HUPDQ\ 81(6&2 ,QVWLWXWH IRU (GXFDWLRQ ?iiT,ffTQ`i
HXmM2b+QXQ`;f2/m+iBQMf7`f7BH2bf9j93efRRjR8j3y8R
R>M2KMMnlX/Q+f>M2KMMnlX/Q+ DFFHVVHG 0D\   
%LEOLRJUDSK\ 

+DUGLQJ /XNH DQG 0DUN 7UDQ  *HRUJLD XQGHU DOORXW DWWDFN LQ EUHDN
DZD\ $ENKD]LD 7KH *XDUGLDQ $XJ   ?iiT,ffrrrX;m`/BMX+
QXmFfrQ`H/fkyy3fm;fRyf;2Q`;BX`mbbBj DFFHVVHG $SU 
 
+DUULV 5LFKDUG /  0DU[LVP DQG WKH WUDQVLWLRQ WR VRFLDOLVP LQ /DWLQ
$PHULFD /DWLQ $PHULFDQ 3HUVSHFWLYHV    ² ,661 ; ?
iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yyN9@83ksWk3RN33k
9WkNR8WjRWj*dWjJhhhaWj1kXyX*PWj"k@C
+HOJKHLP 5DNHO  (O WUDVIRQGR SROtWLFR GH OD SHQDOL]DFLyQ GHO DERUWR
WHUDSpXWLFR HQ 1LFDUDJXD HQ  \ VX UHODFLyQ FRQ ORV GHUHFKRV
KXPDQRV GH ODV PXMHUHV >LQ 6SDQLVK@ >LQ 6SDQLVK@ 0DVWHU·V WKHVLV
8QLYHUVLW\ RI %HUJHQ
+HVWRQ $ODQ 5REHUW 6XPPHUV DQG %HWWLQD $WHQ  3HQQ :RUOG 7DEOH
YHUVLRQ  0D\  ?iiT,ffrrrXB/#XQ`;f2Mf#Qmi@mbf/2#
i@`2HB27-e3N3X?iKH DFFHVVHG -XQH   
+RHIHU 0LFKDHO 1DQF\ 5\WLQD DQG %U\DQ & %DNHU  (VWLPDWHV RI WKH
XQDXWKRUL]HG LPPLJUDQW SRSXODWLRQ UHVLGLQJ LQ WKH 8QLWHG 6WDWHV
-DQXDU\  'HSDUWPHQW RI +RPHODQG 6HFXULW\ ?iiT,ffrrrX/
?bX;QpftHB#``vfbb2ibfbiiBbiB+bfTm#HB+iBQMbfQB
bnBHHnT2nkyyNXT/7 DFFHVVHG $SU   
+ROELJ +HLNH  ,GHRORJLFDO UHIRUP DQG SROLWLFDO OHJLWLPDF\ LQ &KLQD
&KDOOHQJHV LQ WKH SRVW-LDQJ HUD *,*$ 5HVHDUFK 3URJUDP /HJLWLPDF\
DQG (IILFLHQF\ RI 3ROLWLFDO 6\VWHPV QR  0DU 
+R\W .DWKHULQH  7KH PDQ\ IDFHV RI 6DQGLQLVWD GHPRFUDF\  3DSHUV
LQ LQWHUQDWLRQDO VWXGLHV /DWLQ $PHULFD VHULHV  86$ &HQWHU IRU
,QWHUQDWLRQDO 6WXGLHV 2KLR 8QLYHUVLW\ ,6%1 
+HFN %RVFR 0DWDPRURV  /D &RQWUD 0RYLPLHQWR QLFDUDJHQVH >LQ 6SDQ
LVK@ UG HG (G $OLFLD &DVR *XLGR 0DQDJXD (GLWRULDO +,63$0(5
,6%1 
+XUWDGR -RUJH  )6/1 JDQD ODV HOHFFLRQHV PXQLFLSDOHV >LQ 6SDQLVK@ (O
1XHYR 'LDULR 1RY   ?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfM
+BQMH2bfjkN3y DFFHVVHG -DQ   
 %LEOLRJUDSK\

,QGH[ 0XQGL HG  0p[LFR ² WDVD GH GHVHPSOHR ² FXDGURV GH GDWRV

KLVWyULFRV DQQXDOHV >LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT,ffrrrXBM/2tK
mM/BX+QKf;f;XbTt\+4Ktp4d9H42b DFFHVVHG 0D\   
,QWHU$PHULFDQ 'HYHORSPHQW %DQN  $ERXW XV 'HEW UHOLHI ?iiT ,
ffrrrXB/#XQ`;f2Mf#Qmi@mbf/2#i@`2HB27-e3N3X?iKH
DFFHVVHG 0D\   
,QWHUQDWLRQDO 0RQHWDU\ )XQG HG  :RUOG (FRQRPLF 2XWORRN 'DWDEDVH
,QIODWLRQ DQQXDO SHUFHQW FKDQJH DOO FRXQWULHV ?iiT,ffrrrXBK7X
Q`;f2ti2`MHfTm#bf7ifr2Qfkyyyfykf/ifT+TBnX+bp
DFFHVVHG 0D\   
³³³ HG  :RUOG (FRQRPLF 2XWORRN 'DWDEDVH  UHSRUW IRU VHOHFWHG
FRXQWULHV DQG VXEMHFWV 1LFDUDJXD LQIODWLRQ ?iiT,ffrrrXBK7XQ
`;f2ti2`MHfTm#bf7ifr2QfkyRyfykfr2Q/ifr2Q`2TiX
bTt\T`Xt4e9T`Xv48bv4RN3y2v4kyR8b+bK4Rbb/4
RbQ`i4+QmMi`v/b4X#`4R+4kd3b4S*SAWk*S*SAS*>W
k*S*SA1Wk*S*SA1S*>;`T4y4 DFFHVVHG 0D\   
,UYLQ *HRUJH  7KH 1LFDUDJXDQ HFRQRP\ /HJDF\ DQG SHUVSHFWLYHV
6RFLDO 6FLHQWLVW  QR  -DQ  ² ,661  ?iiT,ffHBM
FbXDbiQ`XQ`;fbB+B\bB+B4yNdy@ykNjWk3RN3kyRWkNRyWj
RWj*jeWjhL1GSWj1kXyX*PWj"k@S
-DPLHVRQ 0DUN  2ZQHUVKLS RI VHDVKULPS SURGXFWLRQ DQG SHUFHS
WLRQV RI HFRQRPLF RSSRUWXQLW\ LQ D 1LFDUDJXDQ 0LVNLWR YLOODJH (WK
QRORJ\    ² ,661  ?iiT,ffrrrXDbiQ`XQ`;fb
i#H2f9R8jykN
-DQVHQ 5REHUW 6  5HVXUUHFWLRQ DQG UHDSSURSULDWLRQ 3ROLWLFDO XVHV RI KLVWRU
LFDO ILJXUHV LQ FRPSDUDWLYH SHUVSHFWLYH SDSHU 8QLYHUVLW\ RI &DOLIRUQLD
$XJ ?iiT,ffrrrkXbM2iXQ`;fb2+iBQM+#bKfCMb2M@m;@
kyy9XT/7 DFFHVVHG -DQ   
-RKQVRQ 'DOH /  (FRQRPLVP DQG GHWHUPLQLVP LQ GHSHQGHQF\ WKHRU\
/DWLQ $PHULFDQ 3HUVSHFWLYHV    ² ,661 ; ?iiT,
ffrrrXDbiQ`XQ`;fbi#H2fkejj9dj
-RQHV $GDP  %H\RQG WKH EDUULFDGHV 1LFDUDJXD DQG WKH VWUXJJOH
IRU WKH 6DQGLQLVWD SUHVV  2KLR 8QLYHUVLW\ 5HVHDUFK LQ ,QWHUQD
WLRQDO 6WXGLHV /DWLQ $PHULFDQ 6HULHV QR 
%LEOLRJUDSK\ 

.D\ &ULVWyEDO  /DWLQ $PHULFDQ WKHRULHV RI GHYHORSPHQW DQG XQGHUGHYHORS

PHQW /RQGRQ DQG 1HZ <RUN 5RXWOHGJH
.HVWHU 3DXO  +DPEUH &HUR ¢GHVDUUROOR R JRWDV GH OOXYLD" >,Q 6SDQLVK@
5HYLVWD (QYtR 0DQDJXD  QR  -DQ  ?iiT,ffrrrX2MpBQXQ`;X
MBf`iB+mHQf9RkR DFFHVVHG )HE   
.RGULFK .ULV  7KH UROH RI VWDWH DGYHUWLVLQJ LQ /DWLQ $PHULFDQ QHZV
SDSHUV :DV WKH GHPLVH RI 1LFDUDJXD·V %DUULFDGD QHZVSDSHU SROLWLFDO
VDERWDJH" %XOOHWLQ RI /DWLQ $PHULFDQ 5HVHDUFK    ² GRLRyXRR
RRfDXR9dy@N38eXkyydXyyk8dXt ?iiT,ffrrrX#H+Fr2HH@
bvM2`;vX+QKf/QBf#bfRyXRRRRfDXR9dy@N38eXkyydXyyk8
dXt
/DQFDVWHU 5RJHU 1  7KDQNV WR *RG DQG WKH UHYROXWLRQ 1HZ <RUN &ROXPELD
8QLYHUVLW\ 3UHVV ,6%1 
/HLYD 5REHUWR &DMLQD  /D FR\XQWXUD GH  \ HO VXUJLPLHQWR \ GH
VDUROOR GH OD SULPHUD HWDSD GHO 0RYLPLHQWR 5HYROXFLRQDULR 1LFDUDJHQVH
>LQ 6SDQLVK@ >LQ 6SDQLVK@ ,Q $SXQWHV GH KLVWRULD GH 1LFDUDJXD WRPR 
0DQDJXD 8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1LFDUDJXD
/HQLQ 9ODGLPLU ,O\LFK  :KDW LV WR EH GRQH" ,Q /HQLQ FROOHFWHG ZRUNV
² 9RO  )LUVW SXEOLVKHG DV VHSDUDWH ZRUNV 0RVFRZ )RUHLJQ
/DQJXDJHV 3XEOLVKLQJ +RXVH 
³³³  7KH ULJKW RI QDWLRQV WR VHOIGHWHUPLQDWLRQ ,Q /HQLQ FROOHFWHG
ZRUNV ² 9RO  )LUVW SXEOLVKHG LQ WKH MRXUQDO 1RV   DQG 
0RVFRZ 3URJUHVV 3XEOLVKHUV
³³³ D &KDSWHU  ´FDQ ZH JR IRUZDUG LI ZH IHDU WR DGYDQFH WRZDUGV
VRFLDOLVP"µ LQ ´WKH LPSHQGLQJ FDWDVWURSKH DQG KRZ WR FRPEDW LWµ
,Q /HQLQ FROOHFWHG ZRUNV ² 9RO  )LUVW SXEOLVKHG LQ SDPSKOHW
IRUP 0RVFRZ 3URJUHVV 3XEOLVKHUV 
³³³ E &KDSWHU  ´UHVROXWLRQ RQ WKH FXUUHQW VLWXDWLRQµ LQ ´WKH
VHYHQWK DSULO DOO5XVVLD FRQIHUHQFH RI WKH 56'/3 % µ ,Q /HQLQ
FROOHFWHG ZRUNV ² 9RO  )LUVW SXEOLVKHG DV 6XSSOHPHQW WR
6ROGDWVND\D 3UDYGD 1R  0RVFRZ 3URJUHVV 3XEOLVKHUV 
 %LEOLRJUDSK\

/HQLQ 9ODGLPLU ,O\LFK F ,PSHULDOLVP WKH KLJKHVW VWDJH RI FDSLWDOLVP

,Q /HQLQ FROOHFWHG ZRUNV ² 9RO  )LUVW SXEOLVKHG LQ SDPSKOHW
IRUP 0RVFRZ )RUHLJQ /DQJXDJHV 3XEOLVKLQJ +RXVH 
³³³  7KH WD[ LQ NLQG ,Q /HQLQ FROOHFWHG ZRUNV ² 9RO  )LUVW
SXEOLVKHG LQ SDPSKOHW IRUP 0RVFRZ 3URJUHVV 3XEOLVKHUV 
/HRJUDQGH :LOOLDP 0  0DNLQJ WKH HFRQRP\ VFUHDP 86 HFRQRPLF
VDQFWLRQV DJDLQVW 6DQGLQLVWD 1LFDUDJXD 7KLUG :RUOG 4XDUWHUO\  QR
 -XQH  ² ,661 
/HY\ &OLIIRUG -  5XVVLD EDFNV LQGHSHQGHQFH RI *HRUJLDQ HQFODYHV
1HZ <RUN 7LPHV $XJ   ?iiT,ffrrrXMviBK2bX+QKfkyy3fy3f
kdfrQ`H/f2m`QT2fkd`mbbBX?iKH DFFHVVHG $SU   
/LEHUDFLyQ 6DQGLQLVWD )UHQWH 6DQGLQLVWD GH HG  (VWDWXWRV IVOQ 
>LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT,ffB/#/Q+bXB/#XQ`;frb/Q+bf
;2i/Q+mK2MiXbTt\/Q+MmK4j8jkR8yN
/RZ\ 0LFKDHO DQG 'HQQHU $UWKXU  $ QHZ W\SH RI SDUW\ 7KH %UD]LOLDQ
37 /DWLQ $PHULFDQ 3HUVSHFWLYHV    ² ,661 ; ?iiT,
ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yyN9@83ksWk3RN3dkjWkN
R9Wj9Wj*98jWjLhPShWj1kXyX*PWj"k@u
/XQGJUHQ ,QJHU  /RVW YLVLRQV DQG QHZ XQFHUWDLQWLHV 6DQGLQLVWD SURIHVLRQ
DOV LQ QRUWKHUQ 1LFDUDJXD 6WRFNKROP $OPTXLHVW :LNVHOO ,QWO
/X[HPEXUJ 5RVD ² 7KH QDWLRQDO TXHVWLRQ 6HOHFWHG ZULWLQJV (G +R
UDFH % 'DYLV 2ULJLQDOO\ SXEOLVKHG LQ 3U]HJODG 6RFLDOGHPRNUDW\F]Q\
3URJUHVV 3XEOLVKHUV 
³³³  7KH DFFXPXODWLRQ RI FDSLWDO /RQGRQ 5RXWOHGJH  .HJDQ 3DXO
/WG 
³³³  7KH SUREOHP RI GLFWDWRUVKLS ,Q 7KH 5XVVLDQ 5HYROXWLRQ 1HZ
<RUN :RUNHUV $JH 3XEOLVKHUV 
0DGULJDO 9DUJDV  /DERU PLJUDWLRQ LQ &RVWD 5LFD 'HSDUWPHQW RI /DERU
0LJUDWLRQ ?iiT , f f rrr X b2/B X Qb X Q`; f //b2 f KB;`Mi2
b f +QMi2MB/Qb f S`2b2Mi+BQM2b f .B W kyR W ky @ WkyLQp X k
3f*QbiWky_B+WkyAL:XTTi DFFHVVHG $SU   
%LEOLRJUDSK\ 

 0D KLJKOLJKWV 7DLZDQ1LFDUDJXD WLHV -XO\   ?iiT,ffrrrX+?BM

TQbiX+QKXirfiBrMf7Q`2B;M@77B`bfkyyNfydfy8fkR9
N99fJ@?B;?HB;?ibX?iK DFFHVVHG 1RY   
0DKRQH\ -DPHV  5DGLFDO UHIRUPLVW DQG DERUWHG OLEHUDOLVP 2ULJLQV RI
QDWLRQDO UHJLPHV LQ &HQWUDO $PHULFD -RXUQDO RI /DWLQ $PHULFDQ 6WXGLHV
   ² ,661 ; ?iiT,ffrrrXDbiQ`XQ`;fbi#H
2fje8je39
0DQ]DQDUHV &DOHUR - 6DORPyQ   GH -XOLR KLVWRULD SDUD QXQFD
ROYLGDU >LQ 6SDQLVK@ (O 1XHYR 'LDULR -XO\   ?iiT , f f `+?Bp
Q X 2HMm2pQ/B`BQ X +QK X MB f kyyk f DmHBQ f kj @ DmHBQ @ kyy
kfp`B2//2bfp`B2//2bjX?iKH DFFHVVHG -XQH   
0DUWtQH] 0RLVpV DQG 6HUJLR /HyQ  2UWHJD DUUHEDWD WUHV PXQLFLSLRV
D OD 5$$6 >LQ 6SDQLVK@ /D 3UHQVD $SU   ?iiT,ffrrrXHT`2Mb
X+QKXMBfkyRRfy9fy3fM+BQMH2bf8djyR DFFHVVHG $SU 
 
0DU[ .DUO +HLQULFK  .DSLWDO )LUVW *HUPDQ (GLWLRQ >LQ *HUPDQ@ 9RO ,
³³³  )LUVW GUDIW RI OHWWHU WR 9HUD =DVXOLFK 0DU[ (QJHOV &ROOHFWHG :RUNV
0RVFRZ 
0D\RUJD -RUJH /RiLVLJD  ¢ORV &3& VHUiQ ORV QXHYRV ¶VRSORQHV·" >,Q
6SDQLVK@ /D 3UHQVD -XO\  
0F1DXJKWRQ +HDWKH /X] 0DUWD 0DULD %ODQGRQ DQG /LJLD $OWDPLUDQR
 6KRXOG WKHUDSHXWLF DERUWLRQ EH OHJDO LQ 1LFDUDJXD 7KH UHVSRQVH
RI 1LFDUDJXDQ REVWHWULFLDQJ\QDHFRORJLVWV 5HSURGXFWLYH +HDOWK 0DW
WHUV    ² ,661  ?iiT,ffrrrXDbiQ`XQ`;fbi
#H2fjdd8ddN
0F1DXJKWRQ +HDWKH /X] (OOHQ 0 + 0LWFKHOO DQG 0DUWD 0DULD %ODQGRQ
 6KRXOG GRFWRUV EH WKH MXGJHV" $PELJXRXV SROLFLHV RQ OHJDO
DERUWLRQ LQ 1LFDUDJXD 5HSURGXFWLYH +HDOWK 0DWWHUV    ² ,661
 ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fjddeRRk
0HWR\HU &\QWKLD  :RPHQ DQG WKH VWDWH LQ SRVW6DQGLQLVWD 1LFDUDJXD
/\QQH 5LHQQHU ,6%1 
 %LEOLRJUDSK\

0LQLVWHULR GH (GXFDFLyQ HG  ,QIRUPH ILQDO FDPSDxD QDFLRQDO GH DOIDEHW

L]DFLyQ ´GH 0DUWt D )LGHOµ 3URJUDPD HVWUDWpJLFR GHO JRELHUQR GH UHFRQFLOL
FLDFLyQ \ XQLGDG QDFLRQDO ´XQ SURJUDPD GHO SXHEORµ SDSHU 0LQLVWHULR
GH (GXFDFLyQ -XQH  ?iiT,ffmMTMRXmMXQ`;fBMi`/Q+f;`
QmTbfTm#HB+f/Q+mK2MibfB+TfmMTMyjNRyjXT/7 DFFHVVHG
0D\   
³³³ HG  *REHUQDQWHV GH 1LFDUDJXD >LQ 6SDQLVK@ >LQ 6SDQLVK@ ?iiT,
ffrrrXKBM2/X;Q#XMBf;Q#2`MMiXT?T DFFHVVHG -DQ   
0LUDQGD 3HGUR -RVp 'DQLHO 2UWHJD 6DDYHGUD DQG 6WHSKHQ *RUPDQ 
,QWHUYLHZ ZLWK 'DQLHO 2UWHJD /DWLQ $PHULFDQ 3HUVSHFWLYHV    ²
 ,661 ; ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4
yyN9@83ksWk3RNdNk9WkNeWjRWj*RR9WjAq.PWj1kXyX*PW
j"k@"
0RUDOHV $ 5REHUWR  %XVHV UXVRV SDVDQ ORV SULPHURV H[iPHQHV >LQ
6SDQLVK@ /D 3UHQVD $XJ   ?iiT,ff`+?BpQXHT`2MbX+QKX
MBf`+?BpQfkyyNf;QbiQfRjfMQiB+BbfM+BQMH2bfj9j
9eRnT`BMiXb?iKH DFFHVVHG $SU   
0RUULVVH\ 6LREKDQ  ,UDQ·V URPDQFH RI 1LFDUDJXD 7LPH 0DJD]LQH
6HSW   ?iiT,ffrrrXiBK2X+QKfiBK2frQ`H/f`iB+H2f
y-38NN-Reey8yy-yyX?iKH DFFHVVHG )HE   
0XUR 5RGUtJXH] 0LUWKD HW DO  1LFDUDJXD \ OD 5HYROXFLyQ 6DQGLQLVWD >LQ
6SDQLVK@ (G $OIRQVR ,JOHVLDV *DUFtD +DYDQD (GLWRULDO GH &LHQFLDV
6RFLDOHV
1DYDV /XFtD  7DLZiQ GRQD 86 PLO D 8VXUD &HUR >LQ 6SDQLVK@ /D
3UHQVD )HE   ?iiT,ffrrrXHT`2MbX+QKXMBfkyRyfykfR
jf2+QMQKBfReyey DFFHVVHG )HE   
1LFDUDJXD 1HWZRUN HG D 1LFDUDJXD QHWZRUN KRWOLQH $XJXVW  
?iiT,ffrrrXMB+M2iXQ`;f\T4ddR DFFHVVHG 1RY   
³³³ HG E 1LFDUDJXD QHWZRUN KRWOLQH 1RYHPEHU   ?iiT,
ffrrrXMB+M2iXQ`;f\T438d DFFHVVHG 0DU   
%LEOLRJUDSK\ 

(O 1XHYR 'LDULR  &XED 9HQH]XHOD %ROLYLD \ 1LFDUDJXD FUHDUiQ HP

SUHVD GH WHOHFRPXQLFDFLRQHV >LQ 6SDQLVK@ (O 1XHYR 'LDULR 1RY  
?iiT , f f rrr X 2HMm2pQ/B`BQ X +QK X MB f M+BQMH2b f Rd89
DFFHVVHG -XQH   
1<7 HG  1LFDUDJXD UHFRJQL]HV LQGHSHQGHQFH RI 6RXWK 2VVHWLD DQG
$ENKD]LD 1HZ <RUN 7LPHV 6HSW   ?iiT,ffrrrXMviBK2bX+QKf
kyy3fyNfy9frQ`H/fK2`B+bfy9B?i@;2Q`;BX9XR8Ny9k8
jX?iKH DFFHVVHG $SU   
2UWHJD +XPEHUWR  1LFDUDJXD 7KH VWUDWHJ\ RI YLFWRU\ ,Q 6DQGLQLVWDV
VSHDN 6SHHFKHV ZULWLQJV DQG LQWHUYLHZV ZLWK OHDGHUV RI 1LFDUDJXD·V UHYROX
WLRQ HG %UXFH 0DUFXV WUDQV IURP WKH 6SDQLVK E\ *UDQPD 1HZ <RUN
3DWKILQGHU 3UHVV 
2UWHJD 6DDYHGUD -RVp 'DQLHO  1RWKLQJ ZLOO KROG EDFN RXU VWUXJJOH
IRU OLEHUDWLRQ ,Q 6DQGLQLVWDV VSHDN 6SHHFKHV ZULWLQJV DQG LQWHUYLHZV
ZLWK OHDGHUV RI 1LFDUDJXD·V UHYROXWLRQ HG %UXFH 0DUFXV WUDQV IURP WKH
6SDQLVK E\ ,QWHUFRQWLQHQWDO 3UHVV 1HZ <RUN 3DWKILQGHU 3UHVV 
3DJXDJD 1pVWRU 'HOJDGLOOR HG  &HQVR  &DUDFWHUtVWLFDV HGXFDWLYDV
,QVWLWXWR 1DFLRQDO GH LQIRUPDFLyQ GH GHVDUROOR ?iiT,ffrrrXBM
B/2X;Q#XMBf+2MbQbkyy8foQHSQ#H+BQMfoQHmK2MWkySQ#H
+BQMWkyR@ 9foQHXAAWkySQ#H+BQM@ *`+i2`BbiB+bWk
y1/m+XT/7 DFFHVVHG 0D\   
3DOOPH\HU +DQQDK  %H\RQG FRUSRUDWLVP DQG OLEHUDOLVP 6WDWH DQG FLYLO
VRFLHW\ LQ FRRSHUDWLRQ LQ 1LFDUDJXD +LVSDQLF 6WXGLHV +RQRUV 3URMHFWV
0DFDOHVWHU &ROOHJH
3DOPHU 6WHYHQ  &DUORV )RQVHFD DQG WKH FRQVWUXFWLRQ RI 6DQGLQLVPR LQ
1LFDUDJXD /DWLQ $PHULFDQ 5HVHDUFK 5HYLHZ    ² ,661 
?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yykj@ 3dNRWk3RN3
3WkNkjWjRWj*NRWj*6h*PWj1kXyX*PWj"k@L
3DQWRMD $U\  &3& IXHUD GH OD OH\ >LQ 6SDQLVK@ (O 1XHYR 'LDULR 1RY  
?iiT , f f BKT`2bQ X 2HMm2pQ/B`BQ X +QK X MB f kyyd f RR f k
RfM+BQMH2b DFFHVVHG -XQH   
 %LEOLRJUDSK\

3DQWRMD $U\ DQG (GXDUGR 0DUHQFR  &RQYHQFLRQDOHV 3/& GLFHQ QR DO

SDFWR >LQ 6SDQLVK@ (O 1XHYR 'LDULR -XO\   ?iiT,ff`+?BpQX2HMm
2pQ/B`BQX+QKXMBfkyydfydfRkfTQHBiB+f8j8d9 DFFHVVHG
-XQH   
3DWWHQ *HRUJH 3  'DLU\LQJ LQ 1LFDUDJXD $QQDOV RI WKH $VVRFLDWLRQ RI
$PHULFDQ *HRJUDSKHUV    ² ,661  ?iiT,ffrrrX
DbiQ`XQ`;fbi#H2fk8ek99d
3HUH] $QGUHV  7KH )6/1 DIWHU WKH GHEDFOH 7KH VWUXJJOH IRU WKH GHILQL
WLRQ RI 6DQGLQLVPR -RXUQDO RI ,QWHUDPHULFDQ 6WXGLHV DQG :RUOG $IIDLUV 
  ² ,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2f
ReeR8R
3ROLFtD 1DFLRQDO  $QXDULR HVWDGtVWLFR  $ WX VHUYLFLR VLHPSUH >LQ 6SDQ
LVK@ SROLFH UHSRUW 3ROLFtD 1DFLRQDO GH 1LFDUDJXD ?iiT,ffTQHB+
B X ;Q# X MB f +2/Q+ f b2+iQ` f 2bi/ f MmkyyN W kySL X T/7 DF
FHVVHG -XO\   
3ROOLQ 5REHUW DQG $OH[DQGHU &RFNEXUQ  7KH ZRUOG WKH IUHH PDUNHW
DQG WKH OHIW 6RFLDO 6FLHQWLVW    ² ,661  ?iiT,ffrr
rXDbiQ`XQ`;fbi#H2fj8Rdee3
3RWRVPH 5DPyQ +  5HJDODGRV VDOHQ FDURV >LQ 6SDQLVK@ (O 1XHYR 'LDULR
-XQH   ?iiT,ffrrrX2HMm2pQ/B`BQX+QKXMBfM+BQMH2bf
9NkjR DFFHVVHG $SU   
³³³  'LULJHQWHV KLVWyULFRV GHO )6/1 UHFKD]DQ UHHOHFFLyQ GH 2UWHJD
>LQ 6SDQLVK@ (O 1XHYR 'LDULR 0DU   ?iiT,ffrrrX2HMm2pQ/B
`BQX+QKXMBfTQHBiB+fNd89kn/B`B;2Mi2b@ ?BbiW*jW"j`
B+Qb@/2H@7bHM@`2+?xM@`22H2++BW*jW"jM@/2@Q`i2;
DFFHVVHG -XQH   
3RZHOO $QQD ,  5HODWLRQV EHWZHHQ WKH 8QLWHG 6WDWHV DQG 1LFDUDJXD
² 7KH +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ    ² ,661
 ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fk8y83RN
3R]DV 9tFWRU 6  /D 5HYROXFLyQ 6DQGLQLVWD ² >LQ 6SDQLVK@ 0DGULG
(GLWRULDO 5HYROXFLyQ 6$/ ,6%1 
3UHELVFK 5D~O  7KH HFRQRPLF GHYHORSPHQW RI /DWLQ $PHULFD DQG LWV SULQFL
SDO SUREOHPV 1HZ <RUN 8QLWHG 1DWLRQV
%LEOLRJUDSK\ 

/D 3UHQVD  (O SDFWR VLJXH >LQ 6SDQLVK@ /D 3UHQVD 0DU  

³³³  &RUWH DYDOD &RQVHMRV GHO 3RGHU &LXGDGDQR >LQ 6SDQLVK@ /D
3UHQVD -DQ  
3UHVLGHQW RI WKH ,QWHUQDWLRQDO 'HYHORSPHQW $VVRFLDWLRQ  3UHVLGHQW·V
UHSRUW DQG UHFRPPHQGDWLRQ WR WKH H[HFXWLYH GLUHFWRUV RQ D SURSRVHG FUHGLW
WR WKH UHSXEOLF RI 1LFDUDJXD IRU D SUHLQYHVWPHQW IXQG SURMHFW 31,
:RUOG %DQN 'HF  ?iiT,ffrrr@r/bXrQ`H/#MFXQ`;f2ti2`M
Hf/27mHifq.a*QMi2Mia2`p2`fq.aSfA"fRNNNfy3fy9fyy
yRd33jynN3RyRNykjej99df_2M/2`2/fS.6fKmHiBnT;2XT/
7 DFFHVVHG $XJ   
3~OVDU  &RUWH 6XSUHPD GH -XVWLFLD KDELOLWD OD UHHOHFFLyQ GH 2UWHJD HQ
1LFDUDJXD >LQ 6SDQLVK@ $JHQFLD 3~OVDU 2FW   ?iiT,ffrrrX;2M
+BTmHb`XQ`;fMQiXT?T\B/4Rey98 DFFHVVHG -XQH   
3\WNR $OHNVDQGUD  9L HU LNNH GXPPH YL HU IDWWLJH 2P YLWHQVNDS
HNVSHUWHU XWGDQQLQJ RJ EDUULHUHU IRU IRONHOLJ GHOWDNHOVH L HQ QLFDUDJXDQVN
ODQGVE\ >LQ 1RUZHJLDQ@ >LQ 1RUZHJLDQ@ 0DVWHU·V WKHVLV 8QLYHUVLW\
RI 2VOR
4XHVDGD -DPHV  6XIIHULQJ FKLOG $Q HPERGLPHQW RI ZDU DQG LWV DI
WHUPDWK LQ SRVW6DQGLQLVWD 1LFDUDJXD 0HGLFDO $QWKURSRORJ\ 4XDUWHUO\
1HZ 6HULHV    ² ,661  ?iiT,ffrrrXDbiQ`XQ`
;fbi#H2fe9N9dd
4XLMDQR $QtEDO  &RORQLGDG GHO SRGHU \ FODVLILFDFLRQ VRFLDO >LQ 6SDQ
LVK@ )HVWVFKULIW IRU ,PPDQXHO :DOOHUVWHLQ 3DUW , -RXUQDO RI :RUOG
6\VWHPV 5HVHDUFK    ²
4XLVW +XEHUW 2  &XOWXUDO LVVXHV LQ VHFRQGDU\ HGXFDWLRQ GHYHORSPHQW
LQ :HVW $IULFD $ZD\ IURP FRORQLDO VXUYLYDOV WRZDUGV QHRFRORQLDO
LQIOXHQFHV" &RPSDUDWLYH (GXFDWLRQ    ² ,661  ?i
iT,ffrrrXDbiQ`XQ`;fbi#H2fjyNNd93
5DGLR /D 3ULPHUtVLPD  &LG *DOOXS WDPELpQ GD FRPR JDQDGRU D 'DQLHO
\ DO )6/1 >LQ 6SDQLVK@ 5DGLR /D 3ULPHULVLPD 0D\   ?iiT , f f r
rr X `/BQHT`BK2`BbBK X +QK f MQiB+Bb f ;2M2`H f NN9j8
DFFHVVHG -XQH   
 %LEOLRJUDSK\

5HHG -HDQ3LHUUH  (PRWLRQV LQ FRQWH[W 5HYROXWLRQDU\ DFFHOHUDWRUV

KRSH PRUDO RXWUDJH DQG RWKHU HPRWLRQV LQ WKH PDNLQJ RI 1LFDUD
JXD·V UHYROXWLRQ 7KHRU\ DQG 6RFLHW\    ² ,661 
?iiT,ffrrrXDbiQ`XQ`;fbi#H2f9R99Ny8
5HXWHUV HG  1LFDUDJXD DSSURYHV SXUFKDVH RI 8QLRQ )HQRVD VWDNH
)HE  ?iiT,ffrrrX`2mi2`bX+QKf`iB+H2fkyyNfykfRkfm
MBQM72MQb@MB+`;m@B/laLRk93RydjkyyNykRk DFFHVVHG
$SU   
5,$ 1RYLVWL HG  5XVVLD VHW WR GRQDWH  EXVHV WR 1LFDUDJXD 5,$
1RYLVWL $XJ   ?iiT,ff2MX`BMX`mf`mbbBfkyRyy3R3fRey
k9RN3eX?iKH DFFHVVHG $SU   
5LFDUGR 'DYLG  2Q WKH SULQFLSOHV RI SROLWLFDO HFRQRP\ DQG WD[DWLRQ UG HG
/RQGRQ -RKQ 0XUUD\ ?iiT,ffrrrX2+QMHB#XQ`;fHB#``vf
_B+`/Qf`B+SX?iKH
5LSS -RVHSK /  5HYROXWLRQDU\ 1LFDUDJXD $Q DUHQD IRU UHVHDUFK LQ
PHGLFDO DQWKURSRORJ\ 0HGLFDO $QWKURSRORJ\ 4XDUWHUO\    ²
,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fe93dNy
5RELQVRQ :LOOLDP ,  *OREDOL]DWLRQ WKH ZRUOG V\VWHP DQG ´GHPRF
UDF\ SURPRWLRQµ LQ 86 IRUHLJQ SROLF\ 7KHRU\ DQG 6RFLHW\  QR 
2FW  ² ,661 
5RGJHUV 'HQQLV  $Q DQWKURSRORJLVW LQ D 0DQDJXD JDQJ ,Q *DQJV RI
1LFDUDJXD HG 'HQQLV 5RGJHUV DQG -RVp /XtV 5RFKD ?iiT,ffrrrX#r
TBXKM+?2bi2`X+XmFf#Qmimbfbi77f`Q+?@`Q/;2`bn;
M;bnQ7nMB+`;mXT/7 DFFHVVHG 0D\   
5RGUtJXH] +HEHUWR D 4XLWDQ SRGHUHV GH SDUWLGR D DOFDOGH GH &LXGDG
6DQGLQR >LQ 6SDQLVK@ (O 1XHYR 'LDULR $XJ   ?iiT,ffBKT`2bQX
2HMm2pQ/B`BQX+QKXMBfkyydfy3fkdfM+BQMH2bf8dj8e
DFFHVVHG 0D\   
³³³ E <D VRPRV $/%$ >LQ 6SDQLVK@ (O 1XHYR 'LDULR -DQ   ?iiT,
ff`+?BpQX2HMm2pQ/B`BQX+QKXMBfkyydfyRfRRfM+BQM
H2bfj393e DFFHVVHG -XQH   
5RJHUV 7LP  *RY·W SRZHU EODFNRXWV WR HQG 'HF  1LFD 7LPHV 6HSW  
%LEOLRJUDSK\ 

5RPiQ -DLPH :KHHORFN  ,PSHULDOLVPR \ GLFWDGXUD FULVLV GH XQD IRUPD

FLyQ VRFLDO >LQ 6SDQLVK@ 0H[LFR &LW\ 6LJOR ;;,
5RVWRZ :DOW :KLWPDQ  7KH WDNHRII LQWR VHOIVXVWDLQHG JURZWK 7KH
(FRQRPLF -RXUQDO    ² ,661  ?iiT,ffrrrXDbiQ
`XQ`;fbi#H2fkkkd9yR
³³³  7KH VWDJHV RI HFRQRPLF JURZWK $ QRQFRPPXQLVW PDQLIHVWR /RQGRQ
&DPEULGJH 8QLYHUVLW\ 3UHVV
6iQFKH] (GZLQ  ¢1LFROiV &DOGHUyQ R $XJXVWR &pVDU" >,Q 6SDQLVK@ (O
1XHYR 'LDULR 0D\   ?iiT,ff`+?BpQX2HMm2pQ/B`BQX+QKX
MBfkyydfy8fkdfM+BQMH2bf9NdNy DFFHVVHG -XQH   
6DQGEURRN 5LFKDUG  %ULQJLQJ SROLWLFV EDFN LQ" 7KH :RUOG %DQN DQG
DGMXVWPHQW LQ $IULFD &DQDGLDQ -RXUQDO RI $IULFDQ 6WXGLHV    ²
6DQGRYDO &RQVXHOR  3RVSRQHQ LQVWDODFLyQ GH FRQVHMRV FLXGDGDQRV
>LQ 6SDQLVK@ (O 1XHYR 'LDULR -XO\   ?iiT,ffBKT`2bQX2HMm2p
Q/B`BQX+QKXMBfkyydfydfRkfTQHBiB+f8j8d3 DFFHVVHG
-XQH   
6DQWRV 7KHRWRQLR 'RV  6RFLDOLVPR \ IDVFLVPR HQ $PHULFD /DWLQD KR\
>LQ 6SDQLVK@ 5HYLVWD 0H[LFDQD GH 6RFLRORJLD  QR  -DQ  ²
,661  ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yR3
3@k8yjWk3RNddyRWk6yjWkNjNWjRWj*RdjWjau61GWj1kX
yX*PWj"k@Z
6FKXOW] 9LFWRULD  :RPHQ LQ DUPV PRYLH
6HUUDQR $UPDQGR 5RGUtJXH] HG  &HQVR  &DUDFWHUL]DFLyQ VR
FLRGHPRJUiILFD GHO GHSDUWDPHQWR GH 0DQDJXD ,QVWLWXWR 1DFLRQDO GH
LQIRUPDFLyQ GH GHVDUROOR ?iiT,ffrrrXBMB/2X;Q#XMBf+2MbQb
kyy8fJPLP:_6Aa.fJL:lXT/7 DFFHVVHG $SU   
6LOYD -RVp $GiQ  2UWHJD HPEUDFHV .UHPOLQ ,QVLGH &RVWD 5LFD 1RY  
?iiT,ffBMbB/2+Qbi`B+X+QKfbT2+BHn`2TQ`ibfkyy3@R
RfMB+`;mn`mbbBX?iK DFFHVVHG $SU   
³³³  7DQWHDQ D HMpUFLWR >LQ 6SDQLVK@ (O 1XHYR 'LDULR $SU   ?
iiT , f f rrr X 2HMm2pQ/B`BQ X +QK X MB f M+BQMH2b f dRN8N
DFFHVVHG -XQH   
 %LEOLRJUDSK\

6LQJHU +DQV :  7KH GLVWULEXWLRQ RI JDLQV EHWZHHQ LQYHVWLQJ DQG

ERUURZLQJ FRXQWULHV 7KH $PHULFDQ (FRQRPLF 5HYLHZ    ²
,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fR3R3ye8
6PLWK 6WHYHQ .HQW  5HQRYDWLRQ DQG RUWKRGR[\ 'HEDWH DQG WUDQVL
WLRQ ZLWKLQ WKH 6DQGLQLVWD 1DWLRQDO /LEHUDWLRQ )URQW /DWLQ $PHULFDQ
3HUVSHFWLYHV  QR  0DU  ² ,661 ;
6PXNNHVWDG 2GGYDU  'HQ LQQYLNOHWH XWYLNOLQJHQ >LQ 1RUZHJLDQ@ QG HG
2VOR *\OGHQGDO
6RPR]D *DUFtD $QDVWDVLR  (O YHUGDGHUR 6DQGLQR R HO FDOYDULR GH ODV
VHJRYLDV >LQ 6SDQLVK@ QG HG 0DQDJXD (GLWRULDO 6DQ -RVp
'HU 6SLHJHO  $OOH VROOHQ VLFK HUKHEHQ >LQ *HUPDQ@ 'HU 6SLHJHO QR
² ?iiT,ffrrrXbTB2;2HX/2fbTB2;2HfT`BMif/@R9j
jkRk9X?iKH DFFHVVHG )HE   
7DWDU %UDGOH\  6RFLDO WKRXJKW DQG FRPPHQWDU\ HPHUJHQFH RI QD
WLRQDOLVW LGHQWLW\ LQ DUPHG LQVXUUHFWLRQV $ FRPSDULVRQ RI ,UDT DQG
1LFDUDJXD $QWKURSRORJLFDO 4XDUWHUO\    SS ² ,661 
?iiT,ffrrrXDbiQ`XQ`;fbi#H2f9R8y3N8
7D\ORU % :  $Q RXWOLQH RI WKH YHJHWDWLRQ RI 1LFDUDJXD -RXUQDO RI
(FRORJ\    SS ² ,661  ?iiT,ffrrrXDbiQ`XQ`
;fbi#H2fkk8d8y9
7pIHO 5HLQDOGR $QWRQLR HW DO  /D SULYDWLFD]LyQ TXH VDQJUD >LQ 6SDQLVK@
0DQDJXD )RUR 'HPRFUDWLFR
7HUFHU &LQH D 6DQGLQR WRGD\ DQG IRUHYHU (G -DQ .HHV GH 5RR\ PRYLH
³³³ E 7KDQN *RG DQG WKH UHYROXWLRQ (G :ROI 7LUDGR DQG -DFNLH 5HLWHU
PRYLH
7KH 81 ,QWHUDJHQF\ *URXS IRU &KLOG 0RUWDOLW\ (VWLPDWLRQ HG  0RU
WDOLW\ UDWH LQIDQW SHU  OLYH ELUWKV  :RUOG %DQN ?iiT,ff/
iXrQ`H/#MFXQ`;fBM/B+iQ`faSX.uLXAJ_hXAL DFFHVVHG
0D\   
7LMHULQR )UDQFHV .LQORFK  +LVWRULD GH 1LFDUDJXD >LQ 6SDQLVK@ UG HG
0DQDJXD ,QVWLWXWR GH +LVWRULD GH 1LFDUDJXD \ &HQWURDPpULFD 8QL
YHUVLGDG &HQWURDPHULFDQD
%LEOLRJUDSK\ 

7RUWXJD ² *UXSR DQWLPLOLWDULVWD (O[  $ODFDQW HG  2QFH SUHJXQWDV

\ RQFH UHVSXHVWDV VREUH 8QLyQ )HQRVD HQ 1LFDUDJXD 1RY  ?iiT,
ffrrrX;`mTQiQ`im;X+QKfPM+2@T`2;mMib@v@QM+2@`2bT
m2bib DFFHVVHG $SU   
7R\QEHH $UQROG -RVHSK ² /RV (VWDGRV 8QLGRV 0p[LFR \ 1LFDUDJXD
>LQ 6SDQLVK@ (G )HUQDQGR 6ROtV % 7UDQV IURP WKH (QJOLVK E\ &ODXGLD
)HUUHLUD 0DQDJXD $OGLOi (GLWRU  ,6%1 ;
7XOO\ 6KHLOD 5  1LFDUDJXDQ PHPRULHV RI VDFULILFH 9LVXDO UHSUHVHQ
WDWLRQV DQG FRQWHVWHG KLVWRULHV 9LVXDO $QWKURSRORJ\    ²
?iiT,ffrrrXBM7Q`KrQ`H/X+QKfRyXRy3yfy3N9N9e3XRNN
dXNNeedy3 DFFHVVHG 1RY   
8QLWHG 1DWLRQV HG  1HZ WH[WLOH PLOO WR EHQHILW 1LFDUDJXDQ FRWWRQ
LQGXVWU\ 0D\  ?iiT,ffrrrXmMKmHiBK2/BXQ`;fT?QiQf/2
iBHXDbT\B/4RjkfRjk9RyF2v4R9[m2`v4LB+`;mHM
;42MbQ4yb74/i2 DFFHVVHG -XQH   
³³³ HG  218&$ GHPRELOL]HV 1LFDUDJXDQ 5HVLVWDQFH IRUFHV LQ +RQ
GXUDV $SU  ?iiT,ffrrrXmMKmHiBK2/BXQ`;fT?QiQf/2iB
HXDbT\B/4RdRfRdR3N3F2v49k[m2`v4LB+`;mHM;42
MbQ4yb74/i2 DFFHVVHG -XQH   
8QLWHG 1DWLRQV 6WDWLVWLFV 'LYLVLRQ HG  'HPRJUDSKLF DQG VRFLDO VWDWLV
WLFV 6RFLDO LQGLFDWRUV ?iiT,ffmMbiibXmMXQ`;fmMb/f/2KQ;`
T?B+fT`Q/m+ibfbQ+BM/f?2Hi?X?iK DFFHVVHG 0D\   
86 &HQVXV %XUHDX HG  7UDGH LQ JRRGV LPSRUWV H[SRUWV DQG WUDGH
EDODQFH ZLWK 1LFDUDJXD ?iiT,ffrrrX+2MbmbX;Qpf7Q`2B;M@i
`/2f#HM+2f+kRNyX?iKH DFFHVVHG 1RY   
86 'HSDUWPHQW RI /DERU %XUHDX RI /DERU 6WDWLVWLFV HG  ,QIODWLRQ ²
&RQVXPHU 3ULFH ,QGH[ &3,  +LVWRULFDO &RQVXPHU 3ULFH ,QGH[ GDWD
?iiT,ffrrrXb2iiH2X;Qpf7BMM+2/2T`iK2Mif+TBf?Bbi
Q`B+HX?iK DFFHVVHG -XQH   
9DOHQWD -LUL  1LFDUDJXD 6RYLHW&XEDQ SDZQ RU QRQDOLJQHG FRXQWU\"
-RXUQDO RI ,QWHUDPHULFDQ 6WXGLHV DQG :RUOG $IIDLUV    ² ,661
 ?iiT,ffHBMFbXDbiQ`XQ`;fbB+B\bB+B4yykk@RNj
dWk3RN38kjWkNkdWjjWj*RejWjLaSPL*Wj1kXyX*PWj"k@y
 %LEOLRJUDSK\

9DUJDV 2VFDU5HQp  (OHFFLRQHV  OD RWUD 1LFDUDJXD SRVLEOH >LQ 6SDQ
LVK@ 1LFDUDJXD &HQWUR GH (VWXGLRV GH OD 5HDOLGDG 1DFLRQDO
9HODVFR $QGUpV  'HSHQGHQF\ WKHRU\ )RUHLJQ 3ROLF\ QR ²
,661  ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fjR3j888
9HWHUDQV 3HDFH $FWLRQ 7HDP 3UHHOHFWLRQ 2EVHUYDWLRQ 'HOHJDWLRQ WR 1L
FDUDJXD  86ZDJHG µORZ LQWHQVLW\µ ZDUIDUH LQ 1LFDUDJXD WUDYHO
9HWHUDQV 3HDFH $FWLRQ 7HDP ?iiT,ffrrrX#`BMrBHHbQMX+Q
Kfm@ b@ r;2/@ HQr@ BMi2MbBiv@ r`7`2@ BM@ MB+`;mf
DFFHVVHG )HE   
9LODV &DUORV 0  $VXQWRV GH IDPLOLD &ODVHV OLQHDMHV \ SROLWLFD HQ OD
1LFDUDJXD FRQWHPSRUDQHD >LQ 6SDQLVK@ 'HVDUUROOR (FRQyPLFR   
² ,661 ; ?iiT,ffrrrXDbiQ`XQ`;fbi#H2fj9e
dk99
/D 9R] GHO 6DQGLQLVPR  'HFUHWR SUHVLGHQFLDO 0HGLGDV HFRQyPLFDV
SDUD DIURQWDU FULVLV ILQDQFLHUD LQWHUQDFLRQDO >LQ 6SDQLVK@ >LQ 6SDQLVK@
-DQ  ?iiT,ffrrrXHpQx/2HbM/BMBbKQX+QKfMB+`;m@
i`BmM7fkyyN@yR@kkf/2+`2iQ@T`2bB/2M+BH@K2/B/b@2
+QMQKB+b@T`@7`QMi`@+`BbBb@7BMM+B2`@BMi2`M
+BQMHf DFFHVVHG 1RY   
³³³  8QD QXHYD YLGD SDUD DIHFWDGRV SRU HO QHPDJyQ >LQ 6SDQLVK@
>LQ 6SDQLVK@ )HE  ?iiT,ffrrrXHpQx/2HbM/BMBbKQX+QKf
MB+`;mfkyRR@yk@kefmM@Mm2p@pB/@T`@72+i/Q
b@TQ`@2H@M2K;QMf DFFHVVHG 1RY   
:DONHU 7KRPDV : DQG &KULVWLQH - :DGH  1LFDUDJXD /LYLQJ LQ WKH
VKDGRZ RI WKH HDJOH WK HG %RXOGHU &RORUDGR :HVWYLHZ 3UHVV ,6%1

:DOO 'DYLG /  6SDWLDO LQHTXDOLWLHV LQ 6DQGLQLVWD 1LFDUDJXD *HRJUDSKL
FDO 5HYLHZ    ² ,661  ?iiT,ffrrrXDbiQ`XQ`;fb
i#H2fkR8jde
:DOOHUVWHLQ ,PPDQXHO 0DXULFH  7KH PRGHUQ ZRUOG V\VWHP &DSLWDOLVW
DJULFXOWXUH DQG WKH RULJLQV RI WKH (XURSHDQ ZRUOG HFRQRP\ LQ WKH VL[WHHQWK
FHQWXU\ 1HZ <RUN $FDGHPLF 3UHVV
%LEOLRJUDSK\ 

³³³  7KH ULVH RI (DVW $VLD RU WKH ZRUOGV\VWHP LQ WKH WZHQW\ILUVW
FHQWXU\ ?iiT , f f rrr X #BM;?KiQM X 2/m f 7#+ f Br`Bb2 X ?iK
DFFHVVHG -DQ   
³³³  7KH ULVH DQG IXWXUH GHPLVH RI ZRUOGV\VWHP DQDO\VLV &KDS 
LQ 7KH HQG RI WKH ZRUOG DV ZH NQRZ LW ² VRFLDO VFLHQFH IRU WKH WZHQW\ILUVW
FHQWXU\ ² 0LQQHDSROLV /RQGRQ 8QLYHUVLW\ RI 0LQQHVRWD
3UHVV
:DUUHQ %LOO  ,PSHULDOLVP 3LRQHHU RI FDSLWDOLVP /RQGRQ 9LOOLHUV 3XEOL
FDWLRQV /WG
:LNLOHDNV HG   86 VROGLHUV LQ *HRUJLD IURP -XO  WR $XJ  
?iiT,ffrrrXrBFBH2FbX+?frBFBfRyyynlanaQH/B2`bnBMn
:2Q`;Bn7`QKnCmHnR8niQnm;n3nkyy3 DFFHVVHG $SU   
:LOOLDPV +DUYH\  $Q XQFHUWDLQ SURJQRVLV 6RPH IDFWRUV WKDW PD\
OLPLW IXWXUH SURJUHVV LQ WKH 1LFDUDJXDQ KHDOWK FDUH V\VWHP 0HGLFDO
$QWKURSRORJ\ 4XDUWHUO\    ² ,661  ?iiT,ffrrrXD
biQ`XQ`;fbi#H2fe93dNj
:LOP -RKDQQHV  /D MRYHQ UHYROXFLyQ +RQGXUHxD >LQ 6SDQLVK@ (G 3XHQWH6XU
PRYLH ?iiT,ffrrrXDQ?MM2brBHKXQ`;f?QM/m`bf DFFHVVHG
1RY   
³³³  &XED HFRQRPLF FKDQJHV DQG WKH IXWXUH RI VRFLDOLVP ,QWHU
YLHZ ZLWK FXEDQ SURIHVVRU -RVp %HOO /DUD /LQNV ,QWHUQDWLRQDO -RXUQDO
RI 6RFLDOLVW 5HQHZDO 6\GQH\  ?iiT,ffHBMFbXQ`;XmfMQ/2fRNRe
DFFHVVHG 2FW   
:LQWHUV 'RQDOG +  7KH DJULFXOWXUDO HFRQRP\ RI 1LFDUDJXD -RXUQDO
RI ,QWHU$PHULFDQ 6WXGLHV    ² ,661  ?iiT,ffrr
rXDbiQ`XQ`;fbi#H2fRe8yyy
:RUOG %DQN HG D ([WHUQDO GHEW VWRFNV  RI *1,  1LFDUDJXD ?iiT,
ff/iXrQ`H/#MFXQ`;fBM/B+iQ`f.hX.P.X.1*hX:LXw
af+QmMi`B2bfLA\/BbTHv4;`T? DFFHVVHG 0D\   
³³³ HG E :RUOG GDWD%DQN -RLQW H[WHUQDO GHEW KXE -('+  ?iiT,
ff/i#MFXrQ`H/#MFXQ`;f//Tf?QK2X/Q\ai2T4RkB/4
9*LP4RRd9 DFFHVVHG 0D\   
 %LEOLRJUDSK\

:RUOG %DQN HG F :RUOG GDWD%DQN ?iiT,ff/i#MFXrQ`H/#M

FXQ`;f DFFHVVHG 6HSW   
:RUOG %DQN /DWLQ $PHULFD DQG &DULEEHDQ 5HJLRQDO 2IILFH  0HPRUDQ
GXP RQ UHFHQW HFRQRPLF GHYHORSPHQW DQG SURVSHFWV RI 1LFDUDJXD 1,
:RUOG %DQN -XQH  ?iiT,ffrrr@r/bXrQ`H/#MFXQ`;f2ti2`
MHf/27mHifq.a*QMi2Mia2`p2`fq.aSfA"fRNNNfyNfkyfy
yyRd33jynN3RyRNRk9yyydkf_2M/2`2/fS.6fKmHiBnT;2XT
/7 DFFHVVHG $XJ   
³³³  1LFDUDJXD 7KH FKDOOHQJH RI UHFRQVWUXFWLRQ 1, :RUOG %DQN
2FW  ?iiT,ffrrr@ r/bXrQ`H/#MFXQ`;f2ti2`MHf/27m
Hifq.a*QMi2Mia2`p2`fq.aSfA"fkyyRfRRfR8fyyyRd33jyn
N3RyRNRk88ky8ef_2M/2`2/fS.6fKmHiByT;2XT/7 DFFHVVHG
$XJ   
:RUOG +HDOWK 2UJDQL]DWLRQ HG  *OREDO +HDOWK 2EVHUYDWRU\ 'DWDEDVH
?iiT,ffTTbXr?QXBMif;?Q/if\i?2K24+QmMi`v DFFHVVHG
0D\   
:RUOG +HDOWK 2UJQL]DWLRQ HG  &KRRVLQJ LQWHUYHQWLRQV WKDW DUH FRVW
HIIHFWLYH :+2&+2,&(  3XUFKDVLQJ SRZHU SDULW\ ?iiT,ffrrrXr
?QXBMif+?QB+2f+QbibfTTTf2Mf DFFHVVHG 0D\   
 :RUOG SRSXODWLRQ SURVSHFWV 7KH  UHYLVLRQ 3RSXODWLRQ 'LYLVLRQ
RI WKH 'HSDUWPHQW RI (FRQRPLF DQG 6RFLDO $IIDLUV RI WKH 8QLWHG 1D
WLRQV 6HFUHWDULDW ?iiT,ff2bXmMXQ`;fmMTT DFFHVVHG $SU 
 
 (LBCV

DERUWLRQ WKHUDSHXWLF [[[ [[[LLL [[[LY ² [[[L

      DQWLLPSHULDOLVP [YL     ²
$JXLUUH 3pUH] -RVp 6DQWRV      
$/%$ GH 1LFDUDJXD 6$    $QWLJXD DQG %DUEXGD 
$OHJUtD )UDQFLVFR   $UJHOOR $OH[LV
$OHPiQ /DFD\R -RVp $UQROGR    HOHFWLRQ 
  ²    VXLFLGH 
 $VLD 
$OLDQ]D /LEHUDO 1LFDUDJHQVH   H[SRUWV WR 
   
$ORQVR 0RUHQR 5LJREHUWR ,UXU]XP 
%DUULRV 7RUUHV GH &KDPRUUR 9LROHWD 
$OWHUQDWLYD %ROLYDULDQD SDUD ORV SXHE
     
ORV GH QXHVWUD $PpULFD  
%ODQGyQ 0RQWHQHJUR 0DUtD $QWRQLHWD

²    ²
$OYDUDGR 6R]D $PDGD    

$PLJRV /RV [L[      
%ODQGyQ 5REOHWR )UDQFLVFR   
$PLQWD $ULDV *XLPDU    

²
%RODxRV *H\HU (QULTXH -RVp   
DQWKURSRORJLFDO VWXGLHV

² [[Y
%ROLYLD 
² [[L[
%RUJH 0DUWtQH] 7RPiV    
FXUUHQW UHOHYDQFH [[[L

GHVWUXFWLRQ [[L[ [[[
² [[[LL %UDYR 8UELQD *HUPDQ  
KHDOWK FDUH %XNKDULQ 1LFRODL 
² [[[LLL %XOJDULD  
OLWHUDF\ FDPSDLJQ %XVWLOOR 0DUtD (OHQD [[LY  
V [[Y
² [[[LLL &DOGHUyQ 6DQGLQR $XJXVWR 1LFROiV ²
0LVNLWR  ²      
V [[YL     


 ,QGH[

&DOGHUyQ 0DQXHO     &RVWD 5LFD L[  
  ERUGHU FURVVLQJ [LL
&DPSRV 0RQWHQHJUR 0HUFHGHV   HWKQLFLWLHV RI 
  1LFDUDJXDQ PLJUDWLRQ WR [LL
&DUWHU -DPHV (DUO    SUHVLGHQWLDO UHHOHFWLRQ 
&DVWUR (VWUDGD $QGUpV   ² WRXULVP 
FDXGLOOLVPR  86 PLOLWDU\ 
&HQWUDO $PHULFD &RXQFLO RI 0XWXDO (FRQRPLF $VVLVWDQFH
H[SRUWV WR  
LPSRUWV IURP  FULPH UDWH 
&HQWUDO ,QWHOOLJHQFH $JHQF\ [[LLL [[YL &XDGUD 1~xH] $UOHQ -DKRVND  
    
&HQWUR SDUD OD 3URPRFLyQ OD ,QYHVWLJDFLyQ&XED          
\ HO 'HVDUROOR 5XUDO \ 6RFLDO       
    
&HQWUR 8QLYHUVLWDULR GH OD 8QLYHUVLGDG JRYHUQPHQW VSHQGLQJ 
1DFLRQDO &XWEHUW 5DPtUH] -RVp 5REHUWR 
/HyQ  &]HFKRVORYDNLD 
&HUQD -XiUH] 5HLQDOGR *UHJRULR /HQtQ
  'DUtR 5XEpQ 
&HUQD 3HGUR   'DYLOD 3HWURQLOi 
&KDYH] +XJR       GHSDUWDPHQWDO VWUXFWXUH L[
&KLQDQGHJD 'HSHQGHQF\ 7KHRU\ 
SRSXODWLRQ [L 1LFDUDJXDQ LQWHUHVW LQ [YL
&KRQWDOHV [L[ 5DGLFDO 
ERUGHU DGMXVWPHQW [L 6WUXFWXUDO 
&LHQIXHJRV 9tFWRU   'HYHORSPHQW WKHRULHV 
&LXGDG 6DQGLQR    'LVQRUWH 
ODQG RFFXSDWLRQ   'LVVXU 
PD\RU RI   'RPLQLFD &RPPRQZHDOWK RI 
&RORPELD
SUHVLGHQWLDO UHHOHFWLRQ  HDUWKTXDNH
&RPLWpV GH 'HIHQVD 6DQGLQLVWD    
    (DVWHUQ (XURSH
&RQVHMR 6XSUHPR (OHFWRUDO    LPSRUWV IURP 
 (FXDGRU  
&RQVHMRV GH 3RGHU &LXGDGDQR [YLL [[[LLL (O 5DPD [L [L[ 
 ²   (O 6DOYDGRU L[  
&RQWUDV [YLL [[LL [[Y [[YL [[[L   1LFDUDJXDQ LQYROYHPHQW ZLWK SRO
        LWLFV RI    
 ²    (PSUHVD 1LFDUDJHQVH GH $OLPHQWRV %iVL
&RUHD 0DQXHO    FRV 
&RUUDOHV 5LYDV %\URQ  (QJHOV )ULHGULFK 
,QGH[
(VWHOt   
SRSXODWLRQ [L
ZDUWLPHV LQ 
(XURSHDQ 8QLRQ
H[SRUWV WR 
LPSRUWV IURP 
H[SRUW RULHQWHG GHYHORSPHQW VWUDWHJLHV

H[SRUWV L[        
 
)LUVW :RUOG :DU  
)LWRULD $GROIR 
)ORUHV *HQHW 5D\PXQGR  
)RQVHFD $PDGRU &DUORV  ²  
      
 
)RQVHFD *DOR %D\DUGR -RVp [L[ [[ 
     

)RQVHFD ,FDEDO]HWD &DUROLQD [L[ [[LLL
[[LY    ² 
²
)RQVHFD 7HUiQ &DUORV     
      
    
)RQVHFD )HUQDQGR    
)RQVHFD *ORULD 0DUtD 
IRUHLJQ GHEW
1LFDUDJXD WR RWKHUV   
8QLWHG 6WDWHV WR 1LFDUDJXD  
 *yPH] 0RUDOHV )pOL[   
)UHLH 'HXWVFKH -XJHQG [YLLL 
)UHQWH GH /LEHUDFLyQ 1DFLRQDO    +DPEUH &HUR    
)UHQWH )DUDEXQGR 0DUWt SDUD OD /LEHUDFLyQ +DVVDQ 0RUDOHV 0RLVpV  
1DFLRQDO   
)UHQWH 6DQGLQLVWD GH /LEHUDFLyQ 1DFLRQDO
&RQVHMRV GH /LGHUD]JR 6DQGLQLVWD

VWUXFWXUH 
*DUD\ %HQMDPtQ  
*DUFtD /ySH] &HOVR &HOHVWLQR  

*DUFtD 7RUUHV 6HUDItQ  
JDV SULFHV 
*HRUJLD FRQIOLFW RI [YLLL   

*HUPDQ\   ² 
(DVW [YLLL [L[   ² 
  ² ² ²
 
VRFLDOLVP 
,PSHULDO  
1D]L 
:HVW      
*LQL FRHIILFLHQW 
JRYHUQPHQW FRQVXPSWLRQ 
JRYHUQPHQW VSHQGLQJ 
*UDQDGD 
ODQG RFFXSDWLRQ  
ROLJDUFKV 
SRSXODWLRQ [L
6DQGLQLVPR LQ  
*URVV 'RPHVWLF 3URGXFW  
SHU &DSLWD 
*URVV 1DWLRQDO ,QFRPH
UHODWLRQ WR GHEW 
*UXSR 3HOODV      
*XDUGLD 1DFLRQDO [[LL
*XHUUD 3RSXODU 3URORQJDGD  
*XHYDUD 0RQWDQR 0DUJDULWD  
*XHYDUD (UQHVWR   
*XKDUD\ )DOJXQL     
*XLOOpQ $UDFHO\ 
KHDOWK FDUH
SXEOLF VSHQGLQJV 
VWXGLHV RI
V [[YLLL
² [[[
² [[[LLL
+RQGXUDV L[ [Y [YLLL    
 
 ,QGH[

ERUGHU FURVVLQJ [LL /D 3UHQVD

JRYHUQPHQW VSHQGLQJ  WUDQVSRUW VWULNH 
PLOLWDU\ FRXS     /DJXQD 3HUOD
DJUHHPHQW  PD\RU RI 
86 PLOLWDU\  /DJXQD $JDSLWR 
+RQHFNHU 0DUJRW [YLLL    ODQG UHIRUP
V  
,FDEDOFHWD *DUD\ &DUROLQD [[YLLL   ² ²
   ²   /HLYD &DUGR]D :LOOLDP 
   /HQLQ 9ODGLPLU ,O\LFK     
LOOLWHUDF\ UDWH     
LPSRUWVXEVWLWXWLRQ ²   /HZLWHV +HUW\ 
LPSRUWV      /HyQ [YLLL [[LLL     
FXOWXUDO   
LQIDQW PRUWDOLW\ UDWH  LQVXUUHFWLRQ 
LQIODWLRQ PD\RU RI 
²  0RYLPLHQWR 5HQRYDGRU 6DQGLQLV
V  WD 
,QJHQLR 6DQ $QWRQLR   SRSXODWLRQ [L
,QVWLWXWR GH (VWXGLR GHO 6DQGLQLVPR  6DQGLQLVPR LQ  ² 
,QVWLWXWR 1LFDUDJHQVH GH )RPHQWR 0X  ²
QLFLSDO   WUDQVSRUW VWULNH  
,QVWLWXWR 1LFDUDJHQVH GH 6HJXULGDG 6R ZDUWLPHV LQ 
FLDO  /LEHUDO JRYHUQPHQWV    
LQVXUUHFWLRQ  [L[ [[Y     OLWHUDF\ FDPSDLJQ
    ²   V 
      DQWKURSRORJLFDO VWXGLHV RI [[Y
  (DVW *HUPDQ KHOS 
,QWHU$PHULFDQ 'HYHORSPHQW %DQN  UHPHPEHULQJ 
  UHVXOWV 
,QWHUQDWLRQDO (PHUJHQF\ (FRQRPLF 3RZ 86 UHVSRQVH 
HUV $FW  ² 
,QWHUQDWLRQDO 0RQHWDU\ )XQG [[L[  DQWKURSRORJLFDO VWXGLHV RI [[[LLL
 ²     JRDOV 
 SDUWLFLSDWLRQ 
UHVXOWV 
-LQRWHJD LOOLWHUDF\ UDWH ² 
SRSXODWLRQ [L /RER 6RVD 3RUILULR 
-XYHQWXG 6DQGLQLVWD     /X[HPEXUJ 5RVD    
      /ySH] &HQWHQR -RVp )UDQFLVFR 
-XiUH] -DFLQWR  /ySH] 3pUH] 5LJREHUWR  

.UHQ] (JRQ  0DQDJXD [YLLL²[[LLL [[[L    
,QGH[ 

        

²     0LFKHOHWWL %DtQ 5REHUWR 
      0LQLVWHULRV
² ²    $JURSHFXDULR \ )RUHVWDO [L[ 
      
     V 
V [[L[ &RPHUFLR ([WHULRU 
HDUWKTXDNH  (GXFDFLyQ 
  6DOXG 
HFRQRPLF GHYHORSPHQW   0LVNLWR [[YL [[[L
PD\RU RI       PRGHUQL]DWLRQ WKHRU\ 
 PRQRSRO\ VWDWHFDSLWDOLVP 
PLJUDWLRQ WR  0RQWHDOHJUH 5LYDV (GXDUGR   
PXQLFLSDO HOHFWLRQV     
SRSXODWLRQ [L 9DPRV FRQ 
URDG WR HDVW FRDVW L[ 0RUDOHV (YR 
URWRQGDV   0RYLPLHQWR SRU HO 5HVFDWH GHO 6DQGLQ
6DQGLQLVPR LQ  LVPR  
VKRSSLQJ FHQWHUV [Y  0RYLPLHQWR SRU 1LFDUDJXD 
VWUHHW JDQJV [[[ 0RYLPLHQWR 5HQRYDGRU 6DQGLQLVWD [[LL
VWUXFWXUH RI  [[[L [[[LL   ²
ZDUWLPHV LQ  ²    
0DUWt )DUDEXQGR       
0DUWtQH] $UPDQGR       ² 
0DU[ .DUO +HLQULFK [YL     0XULOOR 5RVDULR     
        
0DVD\D  P\VWLTXH UHYROXWLRQDU\ [[YL
SRSXODWLRQ [L
0DWDJDOSD ²  1HOOD %ODQFD 0DUtD  
SRSXODWLRQ [L QHROLEHUDOLVP 
5LRJUDQGH GH   \HDUV RI      
ZDUWLPHV LQ      
0DWDUJR 'LH] $QD 0LODJUR  1XHYD *XLQHD
0HQGLHWD 2VVLHO   ²  SRSXODWLRQ [L

0HUFDGR &RP~Q &HQWURDPHULFDQR  2ILFLQD GH eWLFD 3~EOLFD  
0HWURFHQWUR [Y  RLO FULVLV
URWRQGD      
0H[LFR   ²      2PHWHSH 
  2UJDQL]DWLRQ RI $PHULFDQ 6WDWHV 
JRYHUQPHQW VSHQGLQJ  2UWHJD 6DDYHGUD -RVp 'DQLHO [L [YL [YLL
LPSRUWV IURP  [[[LL  ²  ² 
3DUWLGR 5HYROXFLRQDULR ,QVWLWXFLRQDO        
 ,QGH[

       5LRV -XDUH] (ULFN 6DXO   
²  ²     
  ²   5RFKD &DVWUR &DUORV $OEHUWR [[YLL 
       
      5RVWRZ·V SKDVH PRGHO  
      5XL] 9tFWRU    
      5XVVLD [YLLL      
²  ²      
2UWHJD +XPEHUWR    LPSRUWV IURP 

SDFWR HO [[[LL    ² 6DLQW 9LQFHQW DQG WKH *UHQDGLQHV 
 6DOPHUyQ 9iVTXH] +HOHQ 0D\GHOLQ 
3DQDPD 
H[SRUWV WR  6DPSVRQ 'DYLOD 5LJR [[LLL  
LPSRUWV IURP  6DQWDPDULD 5RVDOHV *HUDUGR $QWRQLR
3DQDPD &DQDO 
1LFDUDJXDQ DOWHUQDWLYH WR   6HFRQG :RUOG :DU 
3DUWLGR /LEHUDO &RQVWLWXFLRQDOLVWD [[[LLVHOIGHWHUPLQDWLRQ QDWLRQV· ULJKW RI 
        
     
6HOYD *RQ]DOHV 5RJHOLR $QWRQLR 
 
  
3DUWLGR /LEHUDO ,QGHSHQGLHQWH  
6HUYLFLR GH ,QIRUPDFLyQ 0HVRDPHULFDQR
3DUWLGR 5HVLVWHQFLD 1LFDUDJHQVH 
VREUH $JULFXOWXUD 6RVWHQLEOH
3DUWLGR 6RFLDOLVWD 1LFDUDJHQVH   
[[ [[YL  ² 
 
 
3HWURFDULEH 
6LXQD
3HWUyOHRV GH 9HQH]XHOD 6 $ 
SRSXODWLRQ [LL
3LxDWD OD   
6REDOYDUUR %DOGHORPDU )UDQFLVFR ,VLGR
SRSXODWLRQ L[
UR 
JURZWK L[
VRFLDOLVP
SULPLWLYH DFFXPXODWLRQ 
VW FHQWXU\ [YL    
SULYDWL]DWLRQ 
 
UHYHUVDO 
DQWLGRWH WR 
4XH]DGD 3LFDGR )UHGG\ (QULTXH ² &XEDQ 
(DVW *HUPDQ  
5DPRV 1LQID 3DWULFLD     6RPR]DV   ² ²  ² 
5DPtUH] 0HUFDGR 6HUJLR           
5HDJDQ 5RQDOG            
5HJLyQ $XWyQRPD GHO $WOiQWLFR 1RUWH      
[LL   
5HJLyQ $XWyQRPD GHO $WOiQWLFR 6XU L[ HFRQRPLFV 
ERUGHU DGMXVWPHQW [L 6RYLHW 8QLRQ        
UHQDO LQVXIILFLHQF\  ²      
,QGH[ 

      9HQH]XHOD       
          
  DLG WR 6DQGLQLVWDV 
VWDWHFDSLWDOLVW WUDQVLWLRQ SHULRGV  H[SRUWV WR 
6WUXFWXUDO $GMXVWPHQW 3URJUDPV  LPSRUWV IURP 
6ZHGHQ  RLO GHDO 

7HOLFD  :KHHORFN 5RPiQ -DLPH  ² 

7HQGHQFLD 3UROHWDULD      
7HQGHQFLD 7HUFHULVWD    :RUOG %DQN       
7HUiQ $ULHO  
=HOD\D /ySH] -RVp 6DQWRV    
7KDWFKHU 0DUJDUHW +LOGD 
   
7LSLWDSD
=HOD\D 5RVDOHV -RVp 0DQXHO ²
SRSXODWLRQ [L
 
7RUUHV 'DLV\ 
=HOHGyQ 5RGUtJXH] %HQMDPtQ )UDQFLVFR
WUDGH EDODQFH 
   
WUDQVSRUW VWULNH  
7pOOH] 'RUD 0DUtD   

XQGHUQRXULVKPHQW 
XQHPSOR\PHQW UDWH 
8QLWHG .LQJGRP  
8QLWHG 6WDWHV
H[SRUWV WR 
JRYHUQPHQW VSHQGLQJ 
LPSRUWV IURP 
8QLYHUVLGDG &HQWURDPHULFDQD 
8QLYHUVLGDG GH 0DQDJXD²/HyQ [[
8QLYHUVLGDG 1DFLRQDO $XWyQRPD GH 1L
FDUDJXD    
/HyQ      

8QLyQ )HQRVD 6$   
8QLyQ 1DFLRQDO GH (VWXGLDQWHV GH 1LFD
UDJXD  ²
8QLyQ 1LFDUDJHQVH $PHULFDQD 
XUEDQL]DWLRQ L[
86 +RXVH RI 5HSUHVHQWDWLYHV  
8VXUD &HUR  

9DUHOD 9LOFKH] 'RXJODV $XJXVWR 

 
9DUJRQ 5RQDOG