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Issue 67

July 2011
Portfolio
emirates.com
Maria Sharapova
A Winning Brand
ORGANIC FOOD
Healthy Capital Growth
INDONESIAS BOOM
Catching Up With Asia
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Portfolio
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Features
26 No Rest for Google
Google is already dominant in mobile searches, but it
isnt resting on its laurels as the company targets
problems specific to cellphones.
30 Upwardly Mobile Nannies
Brazils rapid economic growth is lifting every level of
society. One group that has particularly benefited is
nannies, who are now entering the growing middle class.
34 Goldmans Scattered Flock
An elite group of partners once controlled Goldman
Sachs fortunes. But since becoming a public company
in 1999, this powerbase has been eroded.
40 Chinas Weak Link
The export juggernaut earns China $1.5 trillion annually.
But getting goods from factories to harbours relies on
an inefficient trucking system.
46 Carbon Storage
Carbon capture and sequestration (CCS) is seen as an
integral part of combating global warming. Carbon capture
has been happening for years, but now the sequestration
part is finally under way.
50 Struggling with Rapid Growth
The Indonesian economy is attracting foreign investment
thanks to its rapid growth based on domestic consumption
and commodities. But the countrys strained infrastructure
could curtail growth.
Cover Story
This issue
July 2011
54 Organic Growth Leads to Deals
The market for organic food kept growing during the
recession, albeit at a slower pace. That has set the scene
for some mergers and acquisitions in the sector.
56 Smaller Studios, for the Smaller Screen
Several production houses have sprung up that take a
professional approach to making YouTube videos. The
idea is to compete with video-streaming services like
Netflix and Hulu.
30 Maria Sharapovas
Marketing Savvy
56
40
She`s lhe worId`s highesl paid femaIe alhIele
and has made a forlune lhrough endorsemenls,
despile her cIaim lhal she was verv nave al
lhe beginning of her lennis career. Now Maria
Sharapova`s biggesl aim is lo become a brand,
reporls Eric WiIson.

9 Notebook
World business in a nutshell.
13 Observer
Spotting and analysing business trends.
18 Column: Johan Naughton
The end of TVs and DVDs?
Portfolio
Exclusive to Emirates First Class and Business Class
6
Departments
Essentials
61 London Luxury
In the wake of the Royal Wedding and with the Olympics
fast approaching, the city of London is basking under
a global spotlight. Heres a pick of the perfect places to
luxuriate next time you visit.
66 Ceramics With Flair
The Italian city of Faenza is famous for its ceramics, which
are still handmade the traditional way by artisans.
70 Songkick Site Targets Music Fans
Live music is one of the few segments of the music industry
that is experiencing continued growth. Songkick is exploiting
a gap in this market by creating a personalised experience
for concert fans.
74 A Taste of India
Ron Levy was an artist when he was asked to build his
first tandoor, a type of Indian oven. Since then he has built
hundreds more and created a successful business.
78 The Cost of Malaria
Malaria is Africas biggest killer and a huge burden on
economies. The Ugandan government used chemical
insecticides to tackle the scourge, but that caused
more problems.
82 Boutique Hotels Aim High
There are many boutique hotels in the works around
the world. While many analysts believe there is a market
for them, others feel that we will soon see mergers and
rationalisation in the boutique sector.
86 Mean Lexus Machine
The Lexus IS F is a four-door sport sedan that was born at
Japans Fuji speedway, home to Lexus high performance
vehicle development. And perform it does.
88 Other Business
Portfolio takes a light-hearted look at the latest business news.
Portfolio
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Editor-in-Chief Obaid Humaid Al Tayer Group Editor & Managing Partner Ian Fairservice Group Senior Editor Gina
Johnson Senior Editor Guido Duken Editorial Assistant Hilda DSouza Art Director Tarak Parekh Junior Designer
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9
Notebook
BUSINESS NEWS IN BRIEF
July 2011
<
HFI>MBMBHGHGMA>
Europo-Asia Iino has boon
inLonso wiLh shipping raLos
roaching a Lwo-voar Iow. Tho rouLo
boLwoon Asia and Europo is parLicuIarIv
hard hiL bv faIIing froighL raLos bocauso
iL`s whoro mosL of Lho worId`s IargosL
conLainor ships, which aro Loo big for Lho
Panama CanaI boLwoon NorLh and SouLh
Amorica, aro usod. Tho prico of carrving
conLainors Lo norLhorn Europoan porLs
from Shanghai has droppod Lo $8,4 por
sLandard box, Lho IowosL sinco JuIv 2uu0.
Tho poak was $2,164 in March IasL voar.
According Lo anaIvsLs A.P. MooIIor-
Maorsk A]S mav bo Lho onIv shipping
Iino Lo profiL from Lho growing Lrado
boLwoon Asia and Europo duo Lo iLs sizo.
LasL voar, Maorsk Lino mado aImosL
$1uu moro Lhan iLs rivaIs por oach
LransporLod 4u-fooL conLainor. Maorsk
on Iobruarv 21 ordorod 1u vossoIs abIo
Lo carrv 18,uuu conLainors from Daowoo
ShipbuiIding & Marino Enginooring Co.,
and has an opLion Lo ordor 2u moro.
Tho now conLainor ships wiII bo abouL
3u por conL biggor Lhan Lho IargosL
vossoIs now in uso.
Hamburg-basod Hapag-LIovd,
Europo`s fourLh-IargosL conLainor Iino, is
grappIing wiLh surging fuoI pricos and
incroasing compoLiLion LhaL cuIminaLod
in a firsL-quarLor noL Ioss of t22.1
miIIion ($32.3 miIIion). Tho riso in Lho
Maersk Leads the Fleet
oiI prico, Lho woak US doIIar and growing
compoLiLion aro making businoss moro
difficuIL,` MichaoI BohrondL, chairman of
Lho oxocuLivo board of Hapag-LIovd, said
in an oarnings sLaLomonL on Mav 12.
Taiwan`s Wan Hai Linos LLd. and
China`s Pacific InLornaLionaI Linos PrivaLo
LLd., which havo abouL 2.0 por conL of
Lho conLainor markoL, said in a Mav 31
sLaLomonL LhaL Lhov wouId sLop sorvico on
Lho Asia-Lo-Europo rouLo and insLoad sIoL
charLor spaco on China Cosco HoIdings
Co. conLainor uniL.
Somo 14 ships wiLh capaciLv abovo
1u,uuu sLandard conLainors wiII sLarL
oporaLing boLwoon 2u11 and 2u14,
according Lo EurogaLo GmbH & Co.
N u mb e r s G a me
$355,
million has been earmarked by Europes second
largest maker of semiconductors, Infineon
Technologies, as investments in its Singapore outpost. The money
will be injected in the coming years as the company expands its
production capacity and research and development facilities.
$1.1
billion record ticket
sales pulled in
by Broadway in the past 12
months is said to be the second
highest in 24 years. The record
season takings were sealed by
money-spinners Wicked, The
Book of Mormon and other hits
that charged $300 and up for
the top seats.
$6
billion in loans for
Egypt and Tunisia by
the World Bank aims to boost
the economy of the emerging
Arab democracies. The World
Bank money will be made
conditional on the countries
progress in modernising their
economies.
$2.4
billion was
spent by
the worlds biggest retailer
Wal-Mart to acquire South
Africas Massmart. This is the
companys second-biggest
acquisition after the $11 billion
takeover of UK retailer Asda
in 1999.
$3
million donated by
eBay founder Pierre
Omidyar to the Louvre Museum
in Paris will go towards
research and educational
projects on Persian Art. The
venture philanthropist is also
known for funding micro-
financing, governmental
transparency and social media
in developing countries.
$812
million has
secured Vienna-
based luxury goods group
Labelux the upscale shoe label,
Jimmy Choo. Jimmy Choos
co-founder and Chief Creative
Officer Tamara Mellon
and CEO Joshua
Schulman
will stay
on in
their
current
jobs.
In Figures
The World
12
-metre-high swan-dive into
a paddling pool containing
just 30.5 centimetres of water
by the US shallow diver, Darren
Taylor, sets a new Guinness
record for the 13th time.
10
Portfolio
US
Companies
Gather
Steam
Thoro has boon much doom
and gIoom IaLoIv abouL Lho
worId`s oconomic rocovorv
faILoring. In Juno Lho MSCI AC
WorId Indox LumbIod 4.0 por
conL on Lhis concorn.
Howovor, profiLs aL
Amorican companios aro
hoIping Lo sLoadv Lho faILoring
rocovorv. JPMorgan Chaso
& Co projocLs oarnings wiII
cIimb an avorago 1u por conL
a voar Lhrough 2u13, moro
Lhan Lhroo Limos quickor
Lhan Lho oconomv, afLor
whaL has aIroadv boon Lho
fasLosL robound sinco Lho IaLo
104us. Surging ovorsoas saIos,
improving US domand and
Lho IodoraI Rosorvo`s pIodgo Lo
koop inLorosL raLos cIoso Lo zoro
for an oxLondod poriod bodo
woII for oarnings. Widoning
margins wiII givo businossos
Lho moans and inconLivo Lo
invosL and hiro, paving Lho wav
for accoIoraLing growLh in Lho
worId`s IargosL oconomv.
This wiII havo a knock on
offocL on Lho sLock markoL
wiLh somo anaIvsLs prodicLing
LhaL Lho SLandard & Poor`s uu
Indox wiII bo up 1u por conL
Lhis voar from Lho ond
of 2u1u.
Howovor, ovon as
companios soo Lhoir boLLom
Iinos improving, Lho gains aro
Laking Limo Lo LrickIo down Lo
ompIovoos.
G
E
T
T
Y

IM
A
G
E
S
11
Notebook
July 2011
Apple Unveils iSaucer
Tho CuporLino, CaIifornia-basod
companv has boon growing so fasL LhaL
iL is running ouL of spaco on Lho AppIo
campus. ThaL`s whv Chiof ExocuLivo
Officor SLovo Jobs unvoiIod his pIans for
a now companv campus wiLh a circuIar
dosign ho Iikonod Lo a spacoship LhaL wiII
accommodaLo abouL 12,uuu ompIovoos.
Tho pIans domonsLraLo AppIo`s growLh.
Tho companv`s profiLs havo moro Lhan
quadrupIod sinco Lho 2uu, inLroducLion
of Lho iPhono, hoIping mako AppIo Lho
worId`s IargosL LochnoIogv companv bv
markoL vaIuo.
Tho pIannod 3.1-miIIion-squaro-
fooL campus wiII havo foaLuros such as
a Iargo audiLorium for prosonLaLions
and a fiLnoss conLro, Jobs said. AppIo is
considoring gonoraLing iLs own powor
on-siLo from naLuraI gas, and using
Lho gonoraI powor grid as a backup.
AppIo is aIso working wiLh an arborisL
aL SLanford UnivorsiLv and pIans
Lo puL 6,uuu Lroos on Lho proporLv,
incIuding apricoL Lroos, a nod Lo Lho
orchards LhaL onco fiIIod Lho aroa of
SiIicon VaIIov souLh of San Irancisco.
AppIo pIans Lo broak ground noxL
voar and movo in bv 2u1, Jobs said. Ho
LoId Lho CuporLino ciLv counciI LhaL Lho
companv`s hoadquarLors now onIv hoIds
abouL 2,8uu poopIo, and LhaL AppIo
has boon ronLing offico spaco noarbv Lo
accommodaLo workors.
A SILVER LINING
Japans economy contracted more than
economists estimated in the first quarter,
underscoring the damage the March 11
earthquake and tsunami inflicted on capital
spending and factory production.
Gross domestic product shrank at an
annualised 3.5 per cent rate in the three
months ended March 31, according to the
Cabinet Office in Tokyo, compared with
the three per cent median that was widely
expected. The government initially estimated
a contraction of 3.7 per cent.
Toyota Motor Corp. and Nissan
Motor Co., which posted sales declines
in May, are working to restore operations
after the disaster caused a shortage of
parts and power, pushing the economy into
a recession.
However, there is good news as
well. Bank of Japan Governor Masaaki
Shirakawa said on June 1 that supply
constraints are easing faster than
expected as companies rush to repair
their facilities and economists predict the
economy will expand in the second half of
the year as reconstruction work kicks in.
Toyota predicted that its domestic output
will recover to 90 per cent of normal levels
in June.
13
July 2011
BUSINESS NEWS IN BRIEF
Observer
MA>IRK:GG:%MA>CHD:KB
DoIuxo, Lho InsLa SIiL, Lho ZipIL and Lho
OponIL appIv bIados and baLLorios Lo
whaL shouId bo a simpIo Lask: oponing
a roLaiI packago. BuL Lho maddoning
- and noarIv imponoLrabIo - pIasLic
packaging known as cIamshoIIs couId
bocomo a woIcomo casuaILv of Lho
difficuIL oconomv. High oiI pricos
havo manufacLurors and big roLaiIors
roconsidoring Lho uso of so much pIasLic,
and somo aro aggrossivoIv Iooking for
choapor subsLiLuLos.
WiLh Lho insLabiIiLv in poLroIoum-
basod maLoriaIs, poopIo said wo nood an
aILornaLivo Lo Lho cIamshoII,` said Joff
KoIIogg, vico prosidonL for consumor
Have you ever struggled with that seemingly indestructible
plastic packaging known as the clamshell? Yes! Good news
then, it may be on its way out, reports Stephanie Clifford.
Thank the High Oil Price
oIocLronics and socuriLv packaging aL Lho
packaging companv MoadWosLvaco.
WaI-MarL, which has pIodgod Lo roduco
iLs packaging bv fivo por conL boLwoon
2uu8 and 2u13, has pushod suppIiors Lo
conconLraLo Iaundrv doLorgonL so iL can
bo soId in smaIIor conLainors, and mado
round hvdrogon poroxido boLLIos inLo
squaro onos Lo cuL down on pIasLic uso.
AL Homo DopoL, Huskv LooIs aro
going from cIamshoII Lo paporboard
packaging, and EcoSmarL LED buIbs
aro abouL Lo bo soId in a corrugaLod box,
raLhor Lhan a Iargor pIasLic caso. MosL
of our manufacLurors havo boon working
on Lhis,` said Craig Monoar, Lho hoad of
morchandising aL Homo DopoL. Wo`vo
corLainIv boon oncouraging Lhom.`
Shoppors havo Iong compIainod
LhaL cIamshoIIs aro a IiLoraI pain, and
onvironmonLaIisLs havo donouncod Lhom
as wasLofuI.
To savo monov and addross compIainLs,
roLaiIors and manufacLurors sLarLod
minimising packaging in Lho o-commorco
sphoro a fow voars ago. Amazon, for
oxampIo, inLroducod a 'frusLraLion-froo
packaging` iniLiaLivo in 2uu8 inLondod
Lo dofuso wrap rago and bo moro oco-
friondIv. OLhor roLaiIors havo aIso
boon Iooking for wavs Lo improvo Lho
cusLomor`s unpacking oxporionco.
As a guv in packaging, I goL aII Lho
quosLions - Lhoro`s noLhing worso Lhan
going Lo a cockLaiI parLv whoro somoono`s
asking whv Lhov can`L goL inLo Lhoir sLuff,`
said RonaId Sasino, Lho sonior dirocLor for
packaging procuromonL aL WaI-MarL. I`vo
hoard ovor Lho voars, 'How como I nood a
knifo Lo goL inLo mv knifo?` 'How como I
nood a pair of scissors Lo goL inLo mv kid`s
birLhdav prosonL?``
The high price of
oil, combined with a
sickly economy, has
retailers scuttling
plastic of all kinds
wherever they can.
Portfolio
14
BuL roducing packaging is moro
compIicaLod in phvsicaI sLoros. Tho
packaging has Lo soII Lho producL,
whoLhor wiLh oxpIanaLorv LoxL, brighL
coIours or caLchv graphics. And iL has Lo
doLor shopIifLors.
CIamshoIIs acLuaIIv sorvod LhaL purposo
roaIIv woII for Lho IasL 2u or 3u voars,`
KoIIogg said. Thon, poLroIoum pricos roso,
firsL in 2uu8 and again Lhis voar, so Lho
cosL of producing cIamshoIIs and oLhor
pIasLic packagos, which aro poLroIoum-
basod, shoL up.
PIasLic packaging is a bvproducL of a
bvproducL, and wo don`L roprosonL onough
voIumo Lo counLoracL Lho indusLrv,` Sasino
said. Wo goL dicLaLod bv Lhings Iiko
poLroIoum pricing, naLuraI gas pricing,
homo hoaLing oiI.` And during and afLor
Lho rocossion, as roLaiIors` saIos droppod,
sLoros sLarLod Iooking Lo cuL cosLs in now
and imaginaLivo wavs.
WiLh Lho inLorosL in aILornaLivos Lo
so much pIasLic, MoadWosLvaco Look
a Lampor-ovidonL cardboard shooL iL
originaIIv suppIiod for pharmacouLicaI
LriaIs, addod a cIoar IaminaLo LhaL
provonLod Loaring, and sLuck Lwo shooLs
of Lho cardboard LogoLhor. IL puL a cuLouL
in Lho middIo, and addod a pIasLic bubbIo
formod Lo a spocific producL, Iiko a Swiss
Armv knifo or a Kodak camora.
Though somo of Lho LochnoIogv, Iiko
Lho fiIm LhaL covors Lho cardboard,
was noL avaiIabIo unLiI roconLIv, iL`s a
domand issuo as woII - iL`s hard Lo dovoIop
somoLhing inLornaIIv Lhon go cram iL inLo
Lho markoL if Lhoro`s no nood,` KoIIogg said
abouL whv Lho packago, caIIod NaLraIock,
was onIv roconLIv inLroducod.
WaI-MarL bogan soIIing iLoms in Lho
now packaging in 2u1u, and Lhough
MoadWosLvaco docIinod Lo roIoaso usago
numbors, iL savs LhaL aII of Lho Swiss
Armv knivos aro using Lho now packaging,
and abouL 8 por conL of Lho compuLor
momorv markoL (Iiko USB drivos and SD
cards) has swiLchod ovor. MoadWosLvaco
savs Lho packago roducos pIasLic bv 6u
por conL, on avorago, vorsus Lho cIamshoII
vorsion for a givon producL. IL aIso is
IighLor bv 3u por conL, which cuLs down
on LransporLaLion cosLs and fuoI uso.
HMA>KI:<D:@BG@ suppIiors aro
aIso offoring simiIarIv LroaLod cardboard
wiLh smaII pIasLic bubbIos, which aro
caIIod bIisLor packs. Wo`vo soon a IoL of
smaII, high-vaIuo producLs moving awav
from whaL wouId havo boon Lwo Lo Lhroo
voars ago a cIamshoII, Lo Lodav whaL is a
bIisLor pack or bIisLor board,` said Lorcan
Shoohan, Lho sonior vico prosidonL for
markoLing and sLraLogv aL ModusLink,
which advisos companios Iiko Toshiba and
HP on Lhoir suppIv chains.
Tho cosL savings aro big, Shoohan said.
WiLh a bIisLor pack, Lho cosL of maLoriaI
and Iabour is 2u por conL Lo 3u por conL
choapor Lhan wiLh cIamshoIIs. AIso, ho
said, from packago donsiLv - Lho amounL
LhaL vou can fiL on a shoIf, or Lhrough
Lho IogisLics and suppIv chain, Lhoro is
froquonLIv 3u Lo 4u por conL moro donsiLv
in Lhoso producLs.`
Tho packagos aIso mooL oLhor
roquiromonLs of roLaiIors. Graphics and LoxL
can bo prinLod on iL. Bocauso mosL poopIo
cannoL Loar Lho producL ouL of Lho bIisLor
pack wiLh Lhoir hands, iL hoIps provonL
LhofL. AIso, Lho smaII SonsormaLic Lag LhaL
is Iinkod Lo a sLoro`s aIarm svsLom is hiddon
boLwoon Lho Lwo shooLs of cardboard; wiLh
cIamshoIIs, iL was sLuck onLo Lho oxLorior,
so a shopIifLor couId moro oasiIv pooI iL off.
Though cIamshoIIs conLinuo Lo dangIo
insido sLoros, wo`ro sooing a significanL
shifL,` Shoohan said. SLovon Hoskins,
managor of packaging onginooring for Lho
Apox TooI Group, said LhaL goLLing rid of
Lho pIasLic packaging savod monov, aIIowod
for moro producLs por shipmonL and cuL
down on wasLo. And, Hoskins said, Lho
packago is vorv aLLracLivo Lo Lho consumor.`
And roIaLivoIv pain-froo.
Husky utility knifes in plastic clamshell packaging, left, and the new paperboard
packaging, right.
Observer
15
O N E 2 WAT C H
Hes not one from the ranks
but he certainly is an industry
veteran. Joseph P Clayton, a
former Sirius Satellite Radio
Chairman and Chief Executive, is
the new CEO at DISH Network
Corp the US second largest
satellite TV broadcaster. Clayton,
61, took office on June 2 and
brings with him all the experience
gained over three decades in
senior positions in the satellite and
consumer electronics industries.
Charles Ergen, the outgoing
CEO and founder of DISH
Network Corp, will continue as the
companys chairman. Clayton has
had a long working relationship
with the outgoing CEO over the
past 20 years, which will stand
him in good stead as he faces the
new challenges. In recent years
Clayton has also been on the
board of EchoStar Corp, DISHs
sister company.
Analysts believe Claytons
extensive experience and his
lengthy business association with
Ergen will allow for uninterrupted
business growth. The company
has been pursuing strategies
involving acquisitions, which
included the recent bids
for Blockbuster and DBSD
North American and planning
investments in technology,
distribution and brand structuring.
Clayton, who has a Masters
degree from Indiana University,
has served as president and
chief executive in various telecom
companies across the globe,
including his former position
at Sirius where he served as
director of the company since
2000 and as chairman from
2004 to 2008.
DISH Network Corp through
its subsidiary boasts more
than 14.19 million satellite TV
subscribers as of March 31,
2010. Dish is a Fortune 200
company and its stock is up
47 per cent so far this year.
I really believe we need
to make DISH a household
word more than it is today, is
Claytons immediate goal and
one stockholders hope he can
deliver on.
Joseph
P Clayton
LUXURI OUS APARTMENTS
ON THE CROI SETTE I N CANNES
Facing the sea
and the Palais
des Festivals
et des Congrs
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VISIT UPON REQUEST
Salon de lHtel Majestic
10 La Croisette
06400 CANNES
+33(0)6 20 13 57 71
+33(0)6 20 74 87 16
www.7croisette.fr
www.eiffageimmobilier.fr www.constructa-vente.fr
Portfolio
AfLor docados of susLainod growLh,
China bocamo Lho worId`s IargosL onorgv
consumor in 2u1u, ovorLaking Lho US, as
gIobaI carbon dioxido (CO
2
) omissions
roso aL Lhoir fasLosL paco in four docados,
according Lo BP, ono of Lho worId`s biggosL
onorgv companios.
16
As China`s oconomv has oxpandod rapidIv,
wiLh an avorago quarLorIv GDP growLh of
0.31 por conL boLwoon 1080 and 2u1u, iLs
onorgv consumpLion has aIso skvrockoLod.
Tho robound in Lho gIobaI oconomv
hoIpod drivo onorgv consumpLion
around Lho worId aL a raLo
noL soon sinco Lho
afLormaLh of Lho
10,3 oiI prico shocks.
This is noL wiLhouL
sido offocLs as Lho impacL
of fossiI fuoI consumpLion
on Lho onvironmonL has aIso
grown. BP suggosLs LhaL CO
2

omissions from onorgv uso
roso aL Lhoir fasLosL paco
sinco 1060. China`s CO
2

omissions roso bv 1u.4
por conL, according Lo Lho
roporL, as Lho numbor of
facLorios, fIighLs and cars grow.
Tho growLh in onorgv consumpLion
roachod .6 por conL in 2u1u, Lho highosL
raLo sinco 10,3, wiLh LoLaI consumpLion of
onorgv oasiIv surpassing Lho pro-rocossion
poak roachod in 2uu8. IL incroasod sLrongIv
for aII forms of onorgv and in aII rogions,
buL moro sLrongIv in dovoIoping counLrios.
OiI romains Lho worId`s Ioading
fuoI, aL 33.6 por conL of gIobaI onorgv
consumpLion. Howovor, iL conLinuod Lo
Ioso markoL sharo for Lho 11Lh consocuLivo
voar, wiLh naLuraI gas and ronowabIos
making smaII gains.
BiofuoIs producLion grow bv 13.8
por conL, whiIo ronowabIos in powor
gonoraLion, such as wind, soIar,
gooLhormaI onorgv and commorciaI
biomass, grow bv 1. por conL. Tho
growLh in uso of ronowabIos camo mainIv
from OECD counLrios, wiLh China, Lho
socond highosL consumor of ronowabIo
fuoI afLor Lho US, a noLabIo oxcopLion.
Preparing for the Future
World economic and agricultural leaders have projected the
worlds population will surpass nine billion by 2050,
and 10 billion by the turn of the century.
And they have forecast that global food
production must jump 70 per cent or
more to meet demand.
Such dire warnings have
prompted a rush by investors
and public and private groups
to buy up agricultural land,
and have agriculture seed and
chemical companies like DuPont
and its competitors rushing to
roll out higher-yielding seeds
and more potent fertilisers and
herbicides.
But a committee formed by food and chemicals
conglomerate DuPont has warned that high-tech
seeds and innovations in chemicals and
farming will not be enough to solve
looming food shortages. The report
stated that lagging public policy
support for increased food
production, outdated and
ineffective infrastructure, and a
lack of cohesive efforts by public
and private players were among
the many hurdles to increasing
food production.
Africa and south and southeast
Asia were pegged as key areas in
need of cohesive development efforts.
China Biggest Oil Consumer in 2010
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Observer
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WORLDS HIGHEST-PAID ATHLETES
(Earnings derived from salaries, bonuses, prize money, appearance fees,
licensing and endorsement income in the 13 months ending 1 May 2011)
Rank Name Sport Age Earnings
1. Tiger Woods Golf 35 $75 million
2. Kobe Bryant Basketball 32 $53 million
3. LeBron James Basketball 26 $48 million
4. Roger Federer Tennis 29 $47 million
5. Phil Mickelson Golf 40 $46.5 million
6. David Beckham Soccer 36 $40 million
7. Cristiano Ronaldo Soccer 26 $38 million
8. Alex Rodriguez Baseball 35 $35 million
9. Michael Schumacher Racing 42 $34 million
10. Lionel Messi Soccer 23 $32.2 million

TOP 10 CITIES WITH THE MOST BILLIONAIRES
Rank City No. of Billionaires Total combined wealth
1. Moscow 79 $375.3 billion
2. New York 59 $220.8 billion
3. London 41 $164.3 billion
4. Hong Kong 40 $176.8 billion
5. Istanbul 36 $60.5 billion
6. Mumbai (tie) 21 $106.6 billion
6. So Paulo (tie) 21 $84.8 billon
8. Taipei (tie) 19 $49.4 billion
8. Los Angeles (tie) 19 $44.3 billion
8. Beijing (tie) 19 $40 billion

WORLDS YOUNGEST BILLIONAIRES
Rank Name NetWorth ($) Age Source Country
1. Dustin Moskovitz 2.7 billion 27 Facebook USA
2. Mark Zuckerberg 13.5 billion 27 Facebook USA
3. Albert von Thurn 2 billion 27 Diversified Germany
und Taxis
4. Scott Duncan 3.1 billion 28 Pipelines United States
5. Eduardo Saverin 1.6 billion 29 Facebook United States
6. Yang Huiyan 4.1 billion 29 Real estate China
7. Fahd Hariri 1.5 billion 30 Construction, Lebanon
Investments
8. Sean Parker 1.6 billion 31 Facebook United States
9. Ayman Hariri 1.5 billion 33 Construction, Lebanon
Investments
10. Yoshikazu Tanaka 2.2 billion 34 Social Networking Japan
The World
Top 10
SOURCE: FORBES.COM
InvosLors havo had a hugo appoLiLo for Loch sharos IaLoIv,
ospociaIIv whon iL comos Lo IniLiaI PubIic Offorings (IPOs). BuL
Lho oxampIo soL bv LinkodIn Corp`s succoss is inspiring wob
companios Lo IimiL Lho amounL of sharos Lhov soII in IniLiaI PubIic
Offorings, fuoIIing concorn LhaL scarciLv wiII infIaLo sLock vaIuos
and conLribuLo Lo anoLhor doL-com bubbIo.
LinkodIn mado Ioss Lhan 1u por conL of Lho companv avaiIabIo
in iLs IPO, Pandora Modia Inc. is working on iLs own 'Iow-fIoaL`
offoring, and Zvnga Inc. is pIanning a simiIar sLraLogv. Ior US
LochnoIogv IPOs in Lho pasL voar, Lho avorago fIoaL was 24 por
conL. Amid scarco suppIv, LinkodIn`s sharos moro Lhan doubIod
in Lhoir firsL dav of Lrading, giving Lho companv a vaIuaLion of
$8.01 biIIion.
InvosLors poinL Lo Lho capiLaI fIooding inLo a soIocL numbor of
hoL LochnoIogv sLarLups as signs of a poLonLiaI bubbIo forming,
buL Lho indusLrv`s pubIicIv Lradod companios aro sLiII roIaLivoIv
choap. As of Juno, Lhov woro Lrading for 0.3 Limos roporLod
oarnings boforo inLorosL, Laxos, doprociaLion and amorLisaLion.
ThaL`s 1.3 Limos Lho indox`s muILipIo - Lho IowosL raLio sinco aL
IoasL 1008.
Tech Bubble in
the Making?
Reid Hoffman, chairman and co-founder of LinkedIn
Corp., second from left, and Jeffrey Weiner, chief
executive officer of LinkedIn, centre, applaud during the
opening bell ceremony at the New York Stock Exchange.
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A Goodbye to TV and DVDs?
JOHN NAUGHTON
:
G>PK>IHKM?KHF
NioIson, Lho US modia raLings
firm, convovs somo bad nows Lo
Lho broadcasL TV noLworks. Ownorship of
LoIovision soLs bv US housohoIds has faIIon
for Lho firsL Limo in Lwo docados.
GranLod, Lho docIino - 06., por conL
vorsus 08.0 por conL proviousIv - mav noL
soom vorv much, buL manv in Lho indusLrv
aro wondoring if iL`s Lho fainL Lromor LhaL
prosagos an oarLhquako. AfLor aII, a TV soL
has boon aImosL as commonpIaco a pioco
of domosLic kiL as a cookor. And LoIovision
has boon Lho dominanL organism in our
modia ocosvsLom for jusL abouL as Iong.
If LhaL`s changing, Lhon iL`s big nows and
noL jusL for Lho indusLrv concornod: poIiLics
in mosL wosLorn counLrios is aIso IargoIv
drivon and dominaLod bv broadcasL TV.
So iL`s imporLanL Lo know if Lho NioIson
finding roprosonLs a bIip or a Lromor.
Thoro aro argumonLs oiLhor wav. If iL`s a
bIip, Lhon Lho oxpIanaLion is simpIo, if sad:
iL`s a rofIocLion of growing povorLv in Lho
US as a rosuIL of Lho oconomic downLurn,
possibIv oxacorbaLod bv Lho swiLchovor
from anaIoguo Lo digiLaI TV. NioIson`s
rosoarch suggosLs LhaL Lho TV-Ioss
housohoIds havo annuaI housohoId
incomos of Ioss Lhan $2u,uuu. This
happonod onco boforo, in 1002, whon Lho
porconLago of US homos wiLh a LoIovision
soL aIso docIinod briofIv afLor a proIongod
oconomic rocossion. BuL ownorship
bouncod back as Lho oconomv rocovorod.
BuL Lhoro aro aIso roasons for Lhinking
LhaL Lho curronL docIino mighL bo a
harbingor. Tho main ono is LhaL for
voungor gonoraLions ownorship of a TV soL
is no Iongor soon as a badgo of aduILhood.
Tho numbor of kids Laking a rocoivor
wiLh Lhom Lo univorsiLv, for oxampIo,
is incrodibIv smaII. And LhaL`s noL jusL
bocauso mosL campusos havo communaI
viowing faciIiLios; iL`s aIso a rofIocLion of
Lho facL LhaL whiIo voung poopIo waLch a
IoL of vidoo maLoriaI, Lhov incroasingIv do
so via a IapLop or LabIoL dovico.
So, as Lho G^pRhkdMbf^l puLs iL:
WhiIo NioIson daLa domonsLraLos LhaL
consumors aro viowing moro vidoo
conLonL across aII pIaLforms - raLhor Lhan
ropIacing ono modium wiLh anoLhor - a
smaII subsoL of voungor, urban consumors
soom Lo bo going wiLhouL paid TV
subscripLions for Lho Limo boing. Tho Iong-
Lorm offocLs of Lhis aro sLiII uncIoar, as iL is
undoLorminod if Lhis is aIso an oconomic
issuo LhaL wiII soo Lhoso individuaIs
onLoring Lho TV markoLpIaco onco Lhov
havo Lho moans or Lho boginning of a
Iargor shifL Lo onIino viowing.`
This doosn`L moan LhaL broadcasL TV
is finishod: Lhoro aro somo Lhings for
which a fow-Lo-manv modium is Lho
mosL appropriaLo, such as Lho OIvmpics.
BuL iL doos havo radicaI impIicaLions
for TV noLworks ovorvwhoro. IL moans,
for oxampIo, LhaL Limo-shifLod viowing
bocomos Lho norm.
Tho BBC`s sIogan for iLs iPIavor sorvico
- 'Making Lho unmissabIo unmissabIo` -
savs iL aII. MosL TV noLworks now offor
somoLhing Iiko Lho iPIavor which, in
Lurn, has radicaI impIicaLions for our
broadband infrasLrucLuro, which
is aIroadv sLruggIing Lo copo
wiLh sLroaming vidoo.
And LhaL`s boforo HD
bocomos ubiquiLous.
BuL iL`s noL jusL Lho
broadcasL noLworks
LhaL aro affocLod bv Lho swiLch. Tho movio
businoss is aIso fooIing Lho pinch. LasL
monLh, Lho DigiLaI EnLorLainmonL Group,
which roprosonLs fiIm sLudios and consumor
oIocLronics companios, roporLod LhaL US
saIos of now DVDs havo faIIon bv 2u por
conL in a voar. Givon LhaL DVD saIos usod Lo
bo HoIIvwood`s biggosL rovonuo oarnor, Lhis
is sLarLIing nows. WhaL Iios bohind iL is Lho
samo phonomonon LhaL`s affocLing Lho TV
noLworks - movio sLroaming bv companios
such as NoLfIix, which provido fiIms on
domand Lo Lhoir broadband subscribors.
Yoars ago, whon Lho baLLIo Lo docido Lho
noxL high-dofiniLion DVD formaL was boing
foughL boLwoon Lho BIu-rav and HD DVD
sLandards, BiII GaLos said LhaL wo wouId
novor soo anoLhor such confIicL. IL wouId bo
Lho IasL Limo LhaL an indusLrv wouId ship
aLoms in ordor Lo ship biLs`. Ho was righL.
Portfolio
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The worlds highest
paid female athlete has
made a fortune through
endorsements. But her
biggest aim is to become a
brand, reports Eric Wilson.
MARKETING
SAVVY
MARIA
SHARAPOVAS
July 2011
21 21
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A>GF:KB:LA:K:IHO:PHGA>K
firsL grand sIam LiLIo in 2uu4, aL ago 1,, sho
mado Lho covor of LihkmlBeenlmkZm^]. Tho
issuo showod Sharapova aL Lho momonL sho
bocamo a housohoId namo, proudIv boaming
on courL aL WimbIodon in a bodv-skimming
whiLo Lank dross from Niko. SLar Powor,` Lho
hoadIino road.
And do vou Lhink I know whaL Lihkml
BeenlmkZm^] was?` Sharapova said, rocaIIing
Lho momonL whon hor agonL, Max Eisonbud,
firsL showod hor Lho magazino, oxpocLing hor
Lo bo as oxciLod as ho was.
I know whaL Oh`n^ was, buL I didn`L know
whaL LihkmlBeenlmkZm^] was.` Sharapova, ovor
coffoo in ApriI, Iaughod aL horsoIf, saving,
Whon vou aro voung, vou aro a IiLLIo naivo.`
BuL vou had Lo wondor: Was Maria
Sharapova roaIIv aII LhaL naivo?
Ono doos noL bocomo Lho highosL
paid fomaIo aLhIoLo in Lho worId wiLhouL
rocognising LhaL Lho groaLosL poLonLiaI
for oarnings comos noL from winning
championships, buL from ondorsomonL doaIs,
parLicuIarIv wiLh fashion and sporLswoar
brands. Sharapova, now 24 voars oId and Lho
sovonLh rankod womon`s singIos pIavor, mado
$24. miIIion from Juno 2uu0 Lo Juno 2u1u,
according Lo ?hk[^l, abouL $4 miIIion moro
Lhan hor noarosL compoLiLor, Sorona WiIIiams.
LasL voar, sho ronowod hor conLracL
wiLh Niko in an oxpandod oighL-voar doaI
LhaL is osLimaLod Lo bo worLh as much as
$,u miIIion, Lho mosL ovor for a fomaIo
aLhIoLo, incIuding rovaILios from cIoLhos sho
dosigns for Niko. Sho aIso dosigns shoos and
handbags for CoIo Haan and ondorsos Iuxurv
brands Iiko Tiffanv and Tag Houor, and Lho
oIocLronics companv Sonv Ericsson.
Expanding hor roach inLo Lho unoxpocLod,
sho is abouL Lo announco a now parLnorship
wiLh Joff Rubin, Lho man who hoIpod croaLo
DvIan`s Candv Bar in 2uu1 and a chain of
candv shops insido IAO Schwarz sLoros (caIIod
IAO SchwooLz) in Lho 100us, Lo dovoIop hor
July 2011
23 23
own brand of candv and swooLs. GumbaIIs
wiII bo shapod Iiko Lonnis baIIs, and gummv
candios wiII bo packagod in conLainors
shapod Iiko Lonnis-baII cans, according Lo
pIans drawn up bv Rubin, who hopos Lo
havo Lhom roadv in Limo for a roIIouL aL Lho
UniLod SLaLos Opon in AugusL. Tho namo
of hor brand? Sugarpova.
DospiLo roconL progross in hor
profossionaI comoback, which has boon
rogardod somowhaL scopLicaIIv sinco a
shouIdor oporaLion in 2uu8 Look hor ouL
of Lho gamo for mosL of a voar, Sharapova
is Iaving Lho groundwork for whaL hor Iifo
wiII bo Iiko afLor Lonnis. Evor Lho forocious
(and vocaI) compoLiLor, hor vicLorv on a
cIav courL aL Lho ILaIian Opon in Romo
on Mav 1 soL up a possibIo sLorvIino for
a Sharapova rovivaI, as sho onLorod Lho
Ironch Opon as ono of Lho LournamonL`s
favouriLos. AIas, sho IosL in Lho somifinaIs
Lo Li Na who wonL on Lo bocomo China`s
firsL grand sIam winnor.
BuL iL is hor compoLiLivonoss off Lho courL
LhaL has mado for a moro rivoLing maLch
in roconL voars, as Sharapova fighLs for Lurf
among Lhoso aLhIoLos who aspiro Lo bocomo
brands - pushing boLh Niko and CoIo Haan
Lo produco moro of hor dosigns, croaLing
Lho candv businoss and now oxpanding hor
onIino prosonco wiLh a Iacobook pago wiLh
4.3 miIIion fans. (ThaL`s moro Lhan anv
Lhon Lho miIIions wiII como.`
ObviousIv, sho was corrocL. In hor own
words, sho now has monov LhaL wiII
food mv groaL-grandchiIdron.` (Ior Lhoso
foIIowing hor Iovo Iifo, Sharapova said
sho is Iooking forward Lo sLarLing a famiIv
wiLh hor fianco, Sasha Vujacic of Lho Now
Jorsov NoLs.)
BMP:L=NKBG@ hor painfuI and
frusLraLing rohabiIiLaLion in Phoonix,
howovor, LhaL hor porcopLions abouL
hor succoss bogan Lo chango. A chronic
shouIdor injurv LhaL surfacod in 2uu,, and
roquirod an oporaLion Lho foIIowing voar,
forcod Sharapova Lo faco Lho roaIiLv LhaL
hor caroor on Lho courL wiII somodav bo
ovor. And whoro wiII sho bo wiLhouL an
oppononL Lo faco?
Sharapova ofLon compIainod Lo Niko
LhaL Lho ouLfiLs Lhov providod woro noL
suiLod Lo hor framo. Sho broughL a skoLch
pad Lo LournamonLs and fiIIod hor hoLoI
rooms wiLh fashion magazinos. Sho askod
Anna WinLour, who has a koon inLorosL
in Lonnis pIavors, for caroor advico -
whoLhor sho LhoughL iL was a good idoa
But it is her
competitiveness off
the court that has
made for a more
riveting match in
recent years, as
Sharapova fights
for turf among
those athletes
who aspire to
become brands.
oLhor fomaIo aLhIoLo has, sho poinLod ouL.)
As sho waIkod pasL Lho suiLs siLLing
aL Lho whiLo-Iinon-covorod LabIos of Lho
rosLauranL in Lho Trump SoHo hoLoI, in
a Iooso, bIack-and-whiLo fIockod haILor
Lop and high-waisLod bIack Lrousors LhaL
mado hor Iook ovon LaIIor Lhan hor 1.0
moLros, a fow oarIv-morning dinors Iookod
up from Lhoir pIaLos. ModoI? AcLross? IL
was a fow momonLs boforo hor namo couId
bo rocognisod among Lhoir whispors. Sho
hardIv soomod Lo noLico Lho aLLonLion, buL
Lhon iL wouId Lako a IoL moro Lhan LhaL Lo
broak Sharapova`s focus.
I`vo boon vorv compoLiLivo bv naLuro
from a voung ago, whoLhor iL was oaLing a
bowI of pasLa fasLor Lhan somobodv oIso,
or aIwavs wanLing Lo bo Lho firsL ono in
Iino,` sho said. Whon sho was 13, Lraining
on schoIarship aL Lho BoIIoLLiori Tonnis
Acadomv in BradonLon, IIorida, a roporLor
from HBO RoaI SporLs askod hor if sho
had Lho chanco Lo win WimbIodon or
mako $2u miIIion in ondorsomonLs, which
wouId sho chooso? Sho Iookod inLo Lho
camora and said, wiLhouL hosiLaLion, I
wouId chooso Lo win WimbIodon, bocauso
Portfolio
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and Canon foIIowod, and as hor caroor
advancod, Sharapova saw hor namo
bogin Lo appoar on acLuaI producLs, Iiko
sungIassos and a waLch for Tag Houor, and
jowoIIorv for Tiffanv. Ior hor coIIaboraLion
wiLh CoIo Haan, inLroducod in AugusL
2uu0, sho insisLod Lho companv incIudo a
baIIoL fIaL. Tho $138 shoos aro now among
Lho Lop-soIIing iLoms for Lho onLiro brand.
MoanwhiIo, dosigning cIoLhos had boon
a much sIowor goaI Lo achiovo.
Whon I was voungor,` Sharapova said,
Niko wouId puL mo in Lho samo cIoLhos
as mavbo 1u oLhor girIs in Lho Lour. Wo aII
Iookod Iiko cIonos. I wanL Lo bo difforonL.
If ovorvono is woaring bIack, I wanL Lo bo
woaring rod.`
MPHR>:KL afLor sho won aL
WimbIodon, aL Lho UniLod SLaLos
Opon in 2uu6, hor socond grand sIam LiLIo
(sho IaLor won a Lhird, aL Lho AusLraIian
Opon), sho woro a IiLLIo bIack dross wiLh a
round crvsLaI coIIar LhaL was inspirod bv
Audrov Hopburn. IL gonoraLod onormous
pubIiciLv, buL Lho dross, a coIIaboraLion
boLwoon Sharapova and Lho Niko Loam, was
novor producod commorciaIIv.
As parL of hor now doaI wiLh Niko,
Lho companv IasL voar finaIIv bogan
producing and soIIing a Iino basod on
hor on-courL aLLiro, and drossing sovoraI
up-and-coming pIavors, Iiko JuIia Goorgos
of Gormanv and AnasLasia Pivovarova of
Russia, in Maria Sharapova Iooks.
AL Lho risk of a sLupid quosLion, iL sooms
roIovanL Lo ask Sharapova, aL 24, if sho
had Lho chanco Lo win WimbIodon again,
or havo a brand on Lho scaIo of Air Jordan,
which wouId sho chooso? JusL boforo Lho
sLarL of Lho Ironch Opon, sho rospondod
bv omaiI righL awav:
Tho answor is I wouId win WimbIodon
ovor anvLhing,` sho said. WimbIodon is
noL somoLhing vou can buv. A brand is
somoLhing vou can buiId.`
for hor Lo dosign a coIIocLion. (Bo carofuI,`
Sharapova romombors WinLour saving. If
vou ond up faiIing, vou won`L havo manv
moro chancos.`)
Sho had aIso soon Lho oxampIo soL bv a
foIIow Russian, Anna Kournikova, who was
famous for hor bovfrionds and for modoIIing
in an ad campaign for shock-absorbing
sporLs bras. Sho docidod sho wouId profor Lo
appoar in a smaII foaLuro in Oh`n^ woaring
a cooI pair of shoos Lhan on Lho covor
of FZqbf in a baLhing suiL. (Sharapova
did consonL Lo modoIIing for Lho Lihkml
BeenlmkZm^] swimsuiL issuo in 2uu6, for
which sho appoarod in sovoraI poIka-doLLod
bikinis of Lho iLsv biLsv varioLv.)
Sho was so sophisLicaLod abouL
proLocLing hor imago, Eisonbud said in
a soparaLo inLorviow, LhaL ho had ovon
noLicod hor bogin Lo pooI Lho IaboIs off
waLor boLLIos aL appoarancos in cIubs, or
whorovor sho mighL bo phoLographod.
Hor firsL big doaI rosuILod from an
unscripLod momonL aL WimbIodon.
AfLor sho won, hor faLhor sIippod a
coIIphono inLo hor hand so sho couId caII
hor moLhor. Sho diaIIod Lho numbor, ovor
and ovor, buL Lho caII wouId noL go Lhrough.
EvonLuaIIv, sho gavo up, apparonLIv unawaro
Lho whoIo opisodo was shown on LoIovision.
MoLoroIa, which was abouL Lo inLroduco
iLs Razr sorios, signod Sharapova Lho noxL
monLh. CommorciaIs for Land Rovor
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LONDON 169 FULHAM ROAD HARRODS SELFRIDGES ROYAL EXCHANGE
MANCHESTER HARVEY NICHOLS FOR UK AND WORLDWIDE STOCKISTS PLEASE CONTACT
+44 (0)20 7591 5000
WWW.THEOFENNELL.COM
Portfolio
BG>:KER+))1%BGMA>LM:KMBG@
davs of Lho iPhono ora, GoogIo onginoors
bogan noLicing somoLhing unusuaI in Lho
soarch ongino`s Iogs. Ownors of Lhoso now
phonos woro doing a hugo numbor of
wob soarchos. BuL Lhoro was a probIom:
soarching on a phono was Ioss Lhan idoaI.
IL was hard Lo Lvpo on smaII scroons. And
mosL irriLaLing for GoogIo, which brags
abouL iLs spood on ovorv pago of soarch
rosuILs, was LhaL wob pagos woro sIow Lo
Ioad on phonos.

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Google is already dominant in mobile searches,
but it isnt resting on its laurels as the company
targets problems specific to cellphones, reports
Claire Cain Miller.
Google
NO REST FOR
So GoogIo sLarLod a projocL iL codo-
namod Grand Prix. In six wooks, onginoors
rovampod mobiIo soarching and haLchod
pIans for now wavs Lo soarch on Lho go, bv
LaIking or Laking phoLos insLoad of Lvping.
Tho sLakos woro high. MobiIo phonos
couId bo a hugo now markoL for GoogIo.
Or Lhov couId provido an oponing for a
compoLiLor Lo pounco, or obviaLo Lho nood
for a soarch ongino aILogoLhor. If poopIo
on phonos couId go sLraighL Lo apps for
informaLion, whv GoogIo anvLhing?
Todav, GoogIo savs mobiIo soarchos aro
growing as quickIv as wob soarchos woro
aL Lho samo sLago in Lho companv`s oarIv
davs, and Lhov aro up sixfoId in Lho IasL
Lwo voars. GoogIo has a markoL sharo of 0,
por conL for mobiIo soarchos, according Lo
SLaLCounLor, which Lracks wob uso.
Now LhaL iL dominaLos Lho fioId, GoogIo
is Lhrowing iLs burIv compuLing powor and
hoaps of daLa aL now probIoms spocific Lo
mobiIo phonos - Iiko LransIaLing phono
caIIs on Lho fIv and rocognising phoLos of
Lhings Iiko pIanLs and iLoms of cIoLhing. I
fooI Iiko a paronL Lho socond Limo around
fooIs,` said AmiL SinghaI, a GoogIo foIIow
who works on soarch. You saw vour firsL
chiId grow aL an amazing paco, and horo
wo aro wiLh our socond chiId, mobiIo,
growing aL Lho samo paco and showing
Lho samo signs.`
GoogIo has boon sIow Lo soizo somo
nowor wob businoss opporLuniLios, mosL
noLabIv sociaI noLworking. InvosLors havo
criLicisod Lho companv for dragging iLs
fooL whon iL comos Lo figuring ouL how Lo
mako monov in now fioIds. BuL mobiIo is an
oxcopLion. LasL voar, Eric E. SchmidL, Lhon
Scott Huffman and Amit Singhal, who
work on search at Google, with a smart
phone outside the Google headquarters
in Mountain View, California. The search
giant, which has most of the mobile
search market, has been throwing its
weight behind solving problems specific to
phones to insure it stays on top.
26
July 2011
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Android, Googles mobile operating system, could soon overtake Apple in numbers of
users and applications. But Apple is still number one when it comes to profit.
Lho companv`s chiof oxocuLivo, said GoogIo`s
phiIosophv was mobiIo firsL,` moaning iL
wouId buiId producLs for phonos aL Lho
samo Limo as vorsions for PCs.
This is Lho pIaco LhaL GoogIo is
ossonLiaIIv boLLing iLs fuLuro on,` said
Karim Tomsamani, GoogIo`s hoad of mobiIo
advorLising, a roIo croaLod in SopLombor.
LMBEE%@HH@E> has noL consisLonLIv
foIIowod Lho mobiIo-firsL manLra, and
somo anaIvsLs, incIuding CoIin GiIIis
of BGC ParLnors, sav iL has noL movod
quickIv onough Lo croaLo now mobiIo
producLs or ads. Thov`vo dono a roaIIv
good job of posiLioning LhomsoIvos so
Lhov can`L goL boxod ouL of Lho markoL,`
GiIIis said. Now Lhov jusL nood Lo doIivor
somo innovaLion. LoL`s wring somo
rovonuo ouL of Lhis pIaLform.`
GoogIo said in OcLobor LhaL mobiIo
ads woro on Lrack Lo gonoraLo $1 biIIion
in rovonuo in Lho coming voar. MobiIo
usors can caII a businoss from wiLhin a
GoogIo ad or rocoivo coupons for noarbv
sLoros. Thov can Lako coIIphono phoLos
of movio posLors Lo puII up a LraiIor.
WiLh now LochnoIogios Iiko noar-fioId
communicaLion, advorLisors couId roward
cusLomors wiLh IovaILv gifLs for waIking
inLo sLoros, Tomsamani said.
BuL bocauso mobiIo ads gonoraIIv soII
for Ioss Lhan haIf Lho prico of wob ads,
GiIIis said, Lhoro`s jusL noL a IoL of profiL
IofL ovor.` Though GoogIo makos Android
sofLwaro for phonos, iL doos noL mako
monov from iL dirocLIv bocauso iL givos iL
awav Lo phono-makors. MoanwhiIo, AppIo
makos monov from iLs dovicos and from
whaL appoars on Lhoir scroons, incIuding
iLs own ad noLwork. SLiII, Lho companv`s
approach Lo Lho mobiIo markoL is cIassic
GoogIo: Lako probIoms LhaL compuLor
scionLisLs havo boon working on for
docados, Lhrow hugo amounLs of daLa and
compuLing powor aL Lhom and assumo
LhaL if Lho rosuILing producL is usofuI Lo
poopIo, iL wiII ovonLuaIIv mako monov.
PoopIo can now snap phoLos of
Iandmarks or wino IaboIs Lo soarch for
Osama Bedier, vice president of payments at Google, introduced the mobile payment
service Google Wallet in May.
Though Google makes Android software for
phones, it does not make money from it directly
because it gives it away to phone-makers.
Meanwhile, Apple makes money from its
devices and from what appears on their screens,
including its own ad network.
Portfolio
28
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LoxLuros, Iiko a bar codo, book covor or
Iandmark. BuL iL ofLon can`L disLinguish
boLwoon a bIack caL and a bIack chair,
for insLanco, or rocogniso food or pIanLs,
Lhough GoogIo is working wiLh boLanisLs
Lo Loach iLs machinos Lho socroLs of Ioaf-
spoLLing. GoogIo aIroadv has Lho capabiIiLv
Lo rocogniso facos, so poopIo couId
LhooroLicaIIv snap a phoLo of a bIind daLo
and puII up an onIino profiIo, buL iL is noL
voL using LhaL LochnoIogv bocauso iL is sLiII
working ouL Lho privacv impIicaLions.
PoopIo can aIso snap a phoLo Lo LransIaLo
a monu in a foroign counLrv, and spoak
EngIish Lo hoar Lho Spanish LransIaLion.
Somodav GoogIo hopos Lo bo abIo Lo
LransIaLo boLh sidos of a phono convorsaLion
as iL happons, said Iranz Och, hoad of
GoogIo`s machino LransIaLion group.
Though Lho soarch rosuILs GoogIo spiLs
ouL mighL soom Lho samo on phonos as on
compuLors, Lhoro aro somo bohind-Lho-
sconos difforoncos. Ior oxampIo, corLain
soarch rosuILs aro rankod difforonLIv, wiLh
IocaLion facLorod in. Soarch for WaImarL
on a compuLor and GoogIo suspocLs vou
aro probabIv Iooking for Lho o-commorco
siLo or job oponings. Soarch on a phono
and GoogIo assumos vou aro Iooking for
Lho noarosL sLoro. OLhor soarch LooIs woro
buiIL spocificaIIv for phonos. Soarch for
woaLhor or sLock pricos and GoogIo shows
a scaIo, movabIo wiLh a fingor, Lo soo
rosuILs for difforonL Limos.
GoogIo savs mobiIo soarch is noL
sLoaIing Limo from compuLor soarchos.
InsLoad, mobiIo soarchos spiko during Lho
Iunch hour and ovonings, whon poopIo
aro awav from Lhoir compuLors. And whiIo
mobiIo usors do soarch for simpIo Lhings
Iiko woaLhor and Lrain Limos, onginoors
havo boon surprisod aL how manv poopIo
aIso ask moro compIicaLod quosLions
abouL businoss and poIiLics.
MobiIo soarch is dofiniLoIv going
Lo surpass doskLop soarch,` said ScoLL
Huffman, who works on mobiIo soarch aL
GoogIo and Ioads iLs soarch ovaIuaLion Loam.
Tho Iinos wiII pass, and I Lhink Lhov`II pass
boforo anvono LhoughL Lhov wouId.`
R`s whon vou park vour car, iL`s hoard
pIonLv of poopIo from BrookIvn and iL
can do woII,` said Miko Cohon, hoad
of GoogIo`s spooch LochnoIogv Loam.
:M?BKLM% GoogIo onginoors LhoughL
poopIo wouId LaIk Lo iLs voico soarch sorvico
as if Lhov woro LaIking Lo a porson - vou
know, iL`s mv annivorsarv, and I`d Iovo Lo
Lako mv wifo somowhoro roaIIv romanLic Lo
oaL, do vou havo anv idoas?` - so iL LaughL
Lho sorvico Lo fiILor ouL unnocossarv words.
BuL iL Lurnod ouL LhaL GoogIo had aIroadv
Lrainod poopIo inLo Lhinking in kovwords, so
Lhov know Lo soarch romanLic rosLauranLs`
ovon whon spoaking insLoad of Lvping.
GoggIos, Lho visuaI soarch LooI,
rocognisos Lhings LhaL havo sLrong visuaI
Google Goggles is a visual search tool that can recognise strong visual textures, but it
still struggles in some areas. Google also has facial recognition software, but it is still
working on the privacy implications.
Lhom using GoogIo GoggIos, spoak Lo Lhoir
phonos using voico soarch and, on Android
phonos, LransIaLo spokon convorsaLions
boLwoon EngIish and Spanish.
Wo as an acadomic communiLv wouId
havo figurod Lhis ouL, buL wo wouIdn`L havo
boon abIo Lo soL iL up on Lhis kind of scaIo,`
said AIoxoi Efros, an associaLo profossor
in compuLor scionco and roboLics aL
Carnogio MoIIon, roforring Lo Lhoso kinds of
LochnoIogicaI foaLs. ThaL`s roaIIv Lho groaL
Lhing abouL GoogIo, Lho facL LhaL iL can do
iL on such a humongous scaIo and acLuaIIv
mako iL usofuI Lo Lho gonoraI pubIic.`
GoogIo Lrainod iLs compuLors Lo
Ioarn spokon Ianguago basod on Lrovos
of voico rocordings. Evon if vou`ro
from BrookIvn and vou drop aII vour
Mobile searches spike during the lunch hour
and evenings, when people are away from their
computers. And while mobile users do search
for simple things like weather and train times,
engineers have been surprised at how many
people also ask more complicated questions.
Portfolio
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Andreia Soares earns $3,100 a
month as a nanny. Seven years
ago she only earned $400 and had
to work six days a week.
I
G:=><:=>PHKDBG@:L
a nannv, Androia Soaros finaIIv
cIamborod up Lho Iaddor inLo BraziI`s
middIo cIass. WiLh Lho monov sho savod,
sho boughL a Lwo-bodroom aparLmonL
wiLh graniLo kiLchon counLorLops and a
smaII voranda, a houso for hor moLhor, a
pIoL of Iand for hor broLhor, and a Louis
VuiLLon purso from Paris LhaL sho proudIv
puIIs from a cIosoL. LaLor Lhis voar, wiLh
hor monLhIv saIarv of $3,1uu, which sho
oarns caring for a 1u-monLh-oId girI in an
upscaIo noighbourhood, sho pIans Lo buv
a $30,uuu car - in cash. I havo aIwavs
had Lhis droam of buving a houso and a
car,` said Soaros, 30. Todav LhaL droam is
cIosor Lhan ovor for nannios.`
WhiIo sho has dono boLLor Lhan manv of
hor counLorparLs, Soaros is parL of a nannv
rovoIuLion LhaL is shaLLoring Lho coIoniaI
sLorooLvpo of inoxponsivo buL dodicaLod
domosLic hoIp in LaLin Amorica.
As Lhoir oxpocLaLions for a boLLor
quaIiLv of Iifo riso, nannios aro
incroasingIv sooking Lo work for Lho vorv
woaILhv and bocoming Ioss affordabIo
for manv middIo-cIass famiIios. Tho
shifL is causing rippIos of cIass Lonsion,
posing a noLLIosomo probIom in a socioLv
in which moro womon aro onLoring Lho
workforco wiLhouL Lho sorL of oIaboraLo
svsLom of dav caro LhaL oxisLs in somo
indusLriaIisod naLions.
Iading fasL aro Lho davs whon whiLo-
frockod nannios workod for a moniaI
saIarv, wiLh onIv Lwo davs off ovorv 1
davs. BoLLor-quaIifiod nannios aro rofusing
Lo work wookonds and aro domanding
saIarios LhaL aro Lwo Lo four Limos whaL
Lhov woro paid jusL fivo voars ago. A
growing numbor aro rofusing Lo sIoop
ovor or aro Ioaving Lho fioId, choosing
jobs LhaL aIIow moro Limo for a privaLo
Iifo, according Lo paronLs, nannios and
dirocLors of nannv pIacomonL agoncios.
Tho incomo of domosLic ompIovoos in
BraziI, incIuding nannios and maids, roso
34 por conL from 2uu3 Lo 2uu0 - moro
Lhan Lwico Lho avorago incroaso for aII
of BraziI`s acLivo workors - said MarcoIo
Nori, an oconomisL aL Lho GoLuIio Vargas
IoundaLion. AL Lho samo Limo, ho said, Lho
working hours of domosLic ompIovoos foII
bv fivo por conL Lo 36.2 hours a wook.
Todav, whaL I nood from a nannv
job is difforonL Lhan boforo,` said Ioda
BarroLo, 32. Sovon voars ago, sho was
making abouL $4uu a monLh and had
onIv 24 hours off ovorv Thursdav, making
iL Lough Lo hoId onLo a bovfriond. Todav
sho oxpocLs Lo mako aImosL $1,0uu
working Mondav Lo Iridav, and sho
chargos an addiLionaI $2u Lo work
wookonds. I am Iooking for quaIiLv of
Iifo,` BarroLo said. I vaIuo mvsoIf much
moro Lhan I did boforo.`
July 2011
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Brazils rapid economic growth is lifting every level
of society. One group that has particularly benefited
is nannies, who are now entering the growing middle
class, reports Alexei Barrionuevo.
UPWARDLY
MOBILE NANNIES
Tho rising oxpocLaLions rofIocL Lho
growLh of BraziI`s middIo cIass, which roso
Lo noarIv por conL of Lho popuIaLion in
2u1u from 3, por conL in 2uu3, Nori said.
Todav, BraziI is bocoming Iiko Lho
UniLod SLaLos,` whoro hourIv paid
housokoopors aro moro common Lhan
sIoop-ovor nannios, said JacquoIino
Szwarc, a psvchoIogisL who was picking
up hor chiIdron ouLsido a privaLo schooI in
So PauIo. Tho saIarios havo goLLon vorv
high, and Lho soarch for domosLic hoIp has
bocomo vorv difficuIL.`
Tho suppIv of nannios has Lhinnod
as somo havo soughL oLhor work in Lho
oxpanding job markoL, driving up saIarios
for Lhoso who sLav in Lho fioId, oconomisLs,
nannios and nannv agoncv dirocLors
said. Manv romaining nannios aro Laking
coursos Lo bocomo boLLor quaIifiod and Lo
hoIp Lhom find work in woaILhior homos,
whoro Lhov can chargo much moro.
WhiIo somo moLhors ombraco Lho
changos as good for BraziI`s dovoIopmonL,
manv aro up in arms. Onco isoIaLod,
nannios now Lrado informaLion abouL Lho
markoL and working condiLions Lhrough
omaiI, bIogs and sociaI noLworks.
IL`s a mafia,` said Szwarc, 44, adding
LhaL sho has boon Iuckv Lo hoId onLo Lho
samo nannv for 1u voars.
Six voars ago, Evanico dos SanLos, a
formor nannv Lurnod bIoggor, had no
inLornoL accoss and caughL up wiLh foIIow
nannios aL a So PauIo aLhIoLic cIub
whoro hor ompIovors woro mombors.
Now marriod, sho has dodicaLod horsoIf
Lo hoIping nannv frionds onIino find a
boLLor paLh` Loward moro monov and
boLLor hours.
LHF>P>EE&I:B= nannios in So
PauIo aro ompIoving nannios of Lhoir
own. Soaros said nannv frionds oarning
moro Lhan $4,3uu a monLh woro paving
Ioss-quaIifiod nannios a IiLLIo ovor $0uu a
monLh Lo babv-siL for Lhoir own chiIdron.
Liko a growing numbor of paronLs,
RafaoIIa ToIodo broughL in hor nannv
from Paraguav, and paronLs said nannios
from Poru woro aIso arriving in So PauIo.
Tho siLuaLion is LorribIo,` ToIodo said.
Now LhaL I am prognanL I am going
Lo Iook for somoono LhaL isn`L a nannv,
bocauso nannios Lhink Lhov aro on anoLhor
IovoI now.`
MichoIIo TchornobiIskv, 20, has changod
nannios abouL 1u Limos in Lho pasL
voar, soarching for somoono affordabIo
voL quaIifiod onough Lo caro for hor
1u-monLh-oId son. CuLLing Lho nannv
Portfolio
32
Some well-paid nannies in So Paulo are
employing nannies of their own. Soares
said nanny friends earning more than
$4,300 a month were paying less-qualified
nannies a little over $900 a month to baby-
sit for their own children.
Above: Brazils first female president,
Dilma Rousseff, has had to tackle rising
inflation as salaries have soared.
Top right: Brazilian nannies are
demanding such high wages that some of
them can afford to shop at Louis Vuitton.
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from hor budgoL is noL an opLion for
TchornobiIskv, a pubIic roIaLions managor,
buL noiLhor is paving a saIarv LhaL sho
considors oxorbiLanL. Wo aro hosLagos,`
sho said.
MariIia ToIodo, Lho ownor of Lho Masa
nannv agoncv, said Lho markoL in So
PauIo, SouLh Amorica`s IargosL ciLv, had
bocomo a war` boLwoon domanding
nannios and paronLs Lrving Lo hoId back
nannv infIaLion. Things aro changing Loo
quickIv and abrupLIv,` said ToIodo, who
has ownod Lho agoncv for 2u voars. No
ono was proparod for Lhis.` Among Lho
Lop roquosLs sho rocoivos, sho savs, is for a
nannv who has novor workod in So PauIo
bocauso Lhov aro moro humbIo.`
ToIodo and somo oconomisLs aro
scopLicaI abouL how Iong Lho rovoIuLion
can IasL. Nori said BraziIians sLiII had Iow
oducaLion IovoIs: an avorago of sovon voars
of sLudv for aduILs oIdor Lhan 2. Rodrigo
ConsLanLino, an oconomisL aL Graphus
CapiLaI, said a Iack of invosLmonL in
oducaLion in BraziI wouId provonL manv
domosLic workors from finding oLhor,
boLLor-paving work, and incossanL saIarv
domands couId sLoko moro infIaLion.
BraziI is riding Lhis wavo and oach cIass is
moving up Lho Iaddor,` ConsLanLino said.
Tho probIom I soo is how Lhis is going Lo
bo susLainabIo.`
LMBEE%G:GGB>L Iiko Soaros aro
invosLing in LhomsoIvos. IL bogan nino
voars ago whon sho Look a nursing
courso. Sho foIIowod up Lwo voars IaLor
wiLh spociaIisod nannv coursos aL a
so-caIIod babv-siLLing conLor. NoxL voar
sho pIans Lo Lako EngIish Iossons. PoopIo
in our fioId aro sLarLing Lo goL moro
quaIificaLions and Lhov aro Iooking for
famiIios wiLh moro monov Lo pav Lhom,`
Soaros said. Bocauso of LhaL, a IoL of
womon aro Iosing Lhoir nannios.`
AfLor a Lwo-voar sLinL working as a
nannv in Now York, sho found hor wav
IasL voar Lo Lho homo of Iornanda Parodi,
a Iawvor marriod Lo a chiof oxocuLivo
in So PauIo. Parodi savs sho has no
compIainLs abouL Soaros` saIarv, Lhough
sho is counsoIing hor Lo buv a choapor car.
I don`L ovor wanL hor Lo Ioavo,` said
Parodi, 38, who is considoring promoLing
hor Lo porsonaI assisLanL. Whoro somo
moLhors soo a dobiIiLaLing rovoIuLion, sho
soos sociaI progross. If BraziI wanLs Lo
movo bovond a Lhird-worId counLrv, Lhon
iL noods Lo aIIow ovorvono Lo parLicipaLo in
Lho growLh,` Parodi said. IL`s Lho prico vou
pav for progross.`
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Marilia Toledo, the
owner of the Masa
nanny agency,
said the market in
So Paulo, South
Americas largest
city, had become
a war between
demanding nannies
and parents trying
to hold back nanny
inflation.
Soares has invested in herself with
specialised nanny courses and plans to take
English lessons. As more nannies leave the
profession, demand keeps rising.
34
GOLDMANS
SCATTERED FLOCK
An elite group of partners once controlled Goldman Sachs fortunes. But since becoming
a public company in 1999, this powerbase has been eroded, reports Susanne Craig.
Portfolio
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musL acL moro Iiko oLhor pubIicIv Lradod
companios, rosponding Lo criLicism
ovor pav, adjusLing sLraLogv Lo pIacaLo
sharohoIdors and doaIing wiLh ouLspokon
acLivisLs aL annuaI mooLings - aII of which
was unhoard of a docado ago.
Girish Roddv, a GoIdman parLnor
who IofL in 2uu2, said Lho firm iniLiaIIv
undorosLimaLod Lho pubIic scruLinv LhaL
wouId como wiLh an offoring. NoL onIv
was Lho parLnorship ownorship high, buL
GoIdman didn`L havo a IoL of producLs
oxocuLivo, Lucas van Praag, wroLo a IoLLor Lo
Lho odiLor in Lho firm`s dofonco.
BGK>@:K=L Lo Lho parLnorship, a
spokosman for GoIdman, David WoIIs, said
Lho group had noL diminishod in Lorms
of iLs Ioadorship of GoIdman.` Ho addod
invosLmonL banking had aIwavs had a
disproporLionaLo amounL of parLnors as iL is
moro dopondonL upon sonior roIaLionships`
and LhaL suggosLing Lho division was
parLnor-hoavv ignoros Lho doIiboraLo
sLrucLuro and makoup of Lho businoss.`
MosL financiaI companios shod Lho
privaLo parLnorships afLor Lhoir
IPOs, Lransforring Lho buIk of
Lho ownorship Lo sharohoIdors.
BuL GoIdman, Lho IasL of Lho
major WaII SLrooL firms
Lo go pubIic, mainLainod
a hvbrid modoI, in parL
as an inconLivo for Lop
ompIovoos.
Tho originaI cIass - of
which 30 romain Lodav
aILhough ono is no Iongor
a parLnor - croaLod Lho
modorn GoIdman. Tho
group has producod aII of
Lho firm`s chiof oxocuLivos
sinco Lho offoring, mosL
roconLIv LIovd C. BIankfoin.
Tho Ioading conLondors and
dark-horso candidaLos Lo succood him
havo aIso boon parLnors sinco Lho IPO,
incIuding Garv Cohn, Lho firm`s prosidonL;
MichaoI Shorwood and J. MichaoI Evans,
boLh vico chairmon; David HoIIor, Lho
co-hoad of oquiLios; and YooI Zaoui, a
Lop invosLmonL bankor. Ior Lho firsL Limo,
Lhough, Lho board couId roach inLo a
voungor gonoraLion, Lapping oxocuLivos
Iiko Harvov SchwarLz, Edward EisIor and
PabIo SaIamo, aIso co-hoads of oquiLios -
aII of whom woro noL among Lho originaI
parLnorship cIass.
Tho formor parLnors havo bocomo a
poworfuI forco on WaII SLrooL and bovond.
Ior oxampIo, Honrv PauIson Jr., Lho
W
A>G@HE=F:GL:<AL
wonL pubIic 12 voars ago, an
oIiLo group of 221 oxocuLivos
conLroIIod Lho sLraLogv and sharos of Lho
invosLmonL bank.
WhiIo Lho cIubbv cuILuro romains, Lho
LighL-kniL group has IosL iLs vico-Iiko grip
on Lho companv, as Lho wishos of Lho
insuIar parLnorship havo givon wav Lo Lho
domands of Lho ouLsido sharohoIdors. Tho
roughIv 48u parLnors curronLIv own Ioss
Lhan 1u por conL of Lho companv, down


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from approximaLoIv 6u por conL aL Lho
iniLiaI pubIic offoring in 1000.
Thoir poworbaso mav soon orodo
furLhor. Sonior GoIdman oxocuLivos aro
considoring whoLhor Lo cuII parLnor-
hoavv divisions Iiko invosLmonL banking,
according Lo poopIo wiLh knowIodgo of Lho
maLLor who woro noL auLhorisod Lo spoak
on Lho rocord.
Tho diminishod infIuonco of Lho
parLnorship has forcod GoIdman, aIboiL
bogrudgingIv, Lo shod somo of iLs socroLivo
corporaLo porsonaIiLv, ospociaIIv in roconL
voars as iLs opaquo businoss modoI has
como undor scruLinv in WashingLon.
AILhough a smaII cadro of oxocuLivos
sLiII sLoor sLraLogv and run Lho dav-Lo-
dav oporaLions, Lho financiaI firm now
Lhov offorod Lo Main SLrooL Amorica,`
said Roddv, a foundor of Lho hodgo fund
Prisma CapiLaI ParLnors. Thov didn`L havo
Lo bo as LransparonL as oLhors.`
AL Lho Limo of Lho markoL dobuL,
GoIdman`s pubIic roIaLions doparLmonL
had jusL a handfuI of poopIo. RoporLors
usod Lo caII Ed NovoLnv, Lho firm`s Lop
spokosman aL Lho Limo, Ed 'No CommonL`
NovoLnv for his dofauIL rosponso Lo mosL
quosLions abouL Lho companv.
Todav, Lho Loam has swoIIod Lo dozons of
ompIovoos, and GoIdman has Lriod Lo bo
moro vocaI, parLicuIarIv whon iL boIiovos Lho
companv has boon maIignod. AfLor ?hk^b`g
Iheb\r magazino wroLo an arLicIo in ApriI
onLiLIod 'How GoIdman Sachs CroaLod
Lho Iood Crisis,` a Lop communicaLions
July 2011
Portfolio
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UnivorsiLv. Evorv cuILuro has a hiorarchv
and LvpicaIIv ovorvono wanLs Lo bo in iL -
and aL GoIdman LhaL is whoro Lho monov is.`
Tho insuIar cuILuro has prompLod
somo criLicism. Ior voars, criLics havo
caIIod GoIdman a big bIack box, Iacking
discIosuro and Lransparoncv. ThaL roachod
a fovor piLch in 2u1u whon Iawmakors
accusod GoIdman of boLLing againsL Lho
housing markoLs aL Lho oxponso of iLs own
cIionLs. AL Lho firm`s annuaI mooLing LhaL
voar, BIankfoin LoId sharohoIdors LhaL
I:KMG>KLABIK>F:BGL an oIiLo
cIub Lodav. RoughIv 1uu now parLnors aro
Lappod ovorv Lwo voars in a sovon-monLh
procoss. CandidaLos aro noL inLorviowod
and do noL ovon know if Lhov aro undor
considoraLion. InsLoad Lho parLnorship
commiLLoo voLs poLonLiaI mombors,
discussing Lhom onIv wiLh oLhor parLnors.
I Lhink Lho parLnorship sLiII has a IoL of
cachoL,` said Rov SmiLh, a formor GoIdman
parLnor who IofL Lho firm in 1088 and
curronLIv Loachos financo aL Now York
Henry Paulson Jr (left), a former Goldman Sachs partner, served as the 74th United States
Secretary of the Treasury.
The Goldman Diaspora
Of the original 221 partners from 1999, only
39 are still with Goldman. The remaining 182
have dispersed into a broad range of roles,
with many securing top spots in finance.
1999
2011
221
Original
Goldman Sachs
partners
19
11
Education/
nonprofit
Other
Sports
management
Corporate director/
executive
Private investor/
retired
Government/
politics
Multiple positions
15
100
Finance
3
4
26
4
39
still at
Goldman
Until 2010, members all
received the same base
salary, most recently
$600,000. They usually take
home a disproportionate
amount of the firms annual
profits in the form of
bonuses. Another perk: The
firm prepares their taxes.
formor chiof oxocuLivo aL GoIdman, and
Kondrick WiIson III, a sonior bankor,
Look on major roIos in fodoraI agoncios,
prompLing Lho monikor GovornmonL
Sachs during Lho financiaI crisis.
AILhough GoIdman oxocuLivos gonoraIIv
oarn faL pavchoquos, Lho parLnorship
bosLows Lop pav and prosLigo. UnLiI 2u1u,
mombors aII rocoivod Lho samo baso saIarv,
mosL roconLIv $6uu,uuu. Thov usuaIIv Lako
homo a disproporLionaLo amounL of Lho
firm`s annuaI profiLs in Lho form of bonusos.
AnoLhor pork: Tho firm proparos Lhoir Laxos.
BASED ON THE MOST RECENTLY AVAILABLE INFORMATION FOR THE ORIGINAL GOLDMAN PARTNERSHIP CLASS.
Linear-winding automatic movement, 18K red gold
case with sapphire crystal sides and back.
Hand-engraved gold version of the rst CORUM
automatic baguette-shaped movement.
www.corum.ch
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Lloyd Blankfein, chairman and CEO of
Goldman Sachs
cIass of 221 parLnors. RoughIv 1uu aro
sLiII working in Lho financiaI indusLrv,
incIuding Lho hodgo fund oxocuLivos PoLor
Brigor Jr. of Lho IorLross InvosLmonL
Group, Eric Mindich of ELon Park CapiLaI
ManagomonL and JonaLhan AisbiLL of Lho
Man Group.
Moro Lhan a dozon, incIuding Suzanno
Nora Johnson, who siLs on Lho board
of Lho insuror Amorican InLornaLionaI
Group, spond a IoL of Lhoir Limo as
corporaLo dirocLors or oxocuLivos aL
nonfinanciaI companios. OLhors havo
movod inLo pubIic sorvico as dipIomaLs,
poIiLicians and Lop govornmonL sLaffors.
PhiIip Murphv, a formor financo chairman
of Lho DomocraLic NaLionaI CommiLLoo,
is now Lho ambassador Lo Gormanv.
MaIcoIm TurnbuII is a mombor of
ParIiamonL in AusLraIia. AnoLhor 26 aro
roLirod and or managing Lhoir own monov.
A fow mombors of Lho IPO cIass usod
GoIdman richos Lo induIgo Lhoir passions.
Tho onoLimo GoIdman bankor David
Baum is pubIishor and odiLor in chiof
of Lho @he_H]rll^r and @he_OZ\Zmbhg
Bglb]^k nowsIoLLors. Loo Vanco, onco a
Lrador aL Lho firm, has wriLLon sovoraI
financiaI LhriIIors. Ono formor GoIdman
oxocuLivo is ovon doing God`s work, as
BIankfoin onco jokingIv doscribod Lho roIo
of Lho invosLmonL bank.
Lhoro was a disconnocL` boLwoon how Lho
firm saw iLsoIf and how Lho pubIic did. Ho
addod GoIdman noodod a rigorous soIf
oxaminaLion.` Tho firm ombarkod on an
aImosL oighL-monLh roviow of iLs businoss
pracLicos, vowing Lo bo moro LransparonL -
anoLhor firsL in Lho pubIic Iifo of GoIdman.
AfLor Lho sLudv, GoIdman producod a
63-pago roporL LhaL IisLod 30 changos Lo
iLs pracLicos, IargoIv aimod aL boIsLoring
inLornaI conLroIs and discIosuro. BuL iL
was doridod as bIusLor sinco GoIdman did
noL rovoaI much abouL iLs oporaLions.
Such momonLs highIighL Lho
conundrum for GoIdman, a pubIic
companv wiLh a privaLo parLnorship aL iLs
coro. Tho firm makos swooping gosLuros
Lo omphasiso an opon naLuro, buL iL ofLon
faIIs shorL in Lho ovos of oLhors.
LEHPER%MA> pubIic sido of GoIdman is
winning ouL, as Lho firm has issuod moro
sLock and parLnors wiLh Iargo sLakos Ioavo
Lho firm or soII sharos. WhiIo Lho parLnors
conLroIIod Lho majoriLv of Lho sLock in
1000, Lodav a vasL arrav of insLiLuLions Iiko
IidoIiLv, SLaLo SLrooL and CapiLaI WorId
InvosLors aro Lho main ownors.
AfLor Lho IPO, Lho parLnors aIso agrood
Lo voLo LogoLhor on issuos, casLing aII of
Lhoir sharos in Lho samo wav. Tho group,
which curronLIv owns 0.0 por conL of Lho
companv, voLo in IocksLop wiLh onIv 3.0
por conL of Lhoir sharos now, according
Lo roguIaLorv fiIings anaIvsod bv Ma^G^p
RhkdMbf^l and IooLnoLod.com, a division
of MorningsLar.
BuL ovon wiLh Lho parLnorship Iosing
powor insido GoIdman, iLs roach ouLsido
Lho firm is significanL, spanning a cross
socLion of financiaI firms, govornmonL
agoncios, non profiLs and sporL
managomonL. Tho prominonL mombors
of Lho originaI parLnorship cIass aro woII
documonLod, incIuding ox-Now Jorsov
govornor Jon Corzino and John Thain,
who is now running Lho Iondor CIT Group.
BuL Lho Iossor-known namos havo
provod oquaIIv infIuonLiaI, according Lo
a G^pRhkdMbf^l sLudv of Lho originaI
Since becoming a public company in 1999, Goldman Sachs has faced more public
scrutiny. In 2010 the company was accused of betting against the housing market at the
expense of its own investors.
But even with the
partnership losing power
inside Goldman, its reach
outside the firm is significant,
spanning a cross section of
financial firms, government
agencies, non profits and
sport management.
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Boodles Wonderland | T: +44 (0)20 7437 5050 | www.boodles.com
F
HKR>:KL%<ABG:L>QIHKM
juggornauL has boon fod bv highIv
officionL facLorios, Iow-cosL Iabour
and a fIooL of conLainor ships capabIo
of LransporLing hugo voIumos of Lovs,
LoxLiIos, oIocLronics and oLhor goods Lo
ovorv cornor of Lho worId.
BuL Lhoro is a surprisingIv woak Iink in
Lho Mado in China chain.
Moving Lhoso goods from Lho
facLorv fIoor Lo ono of China`s onormous
soaporLs - ofLon a drivo of Ioss Lhan
Lwo hours - LvpicaIIv moans roIving
on an indopondonL Lrucking companv.
And as viLaI as Lrucking is Lo China`s
mighLv oxporL machino, Lho govornmonL
sooms Lo bo ignoring Lho drawbacks
of whaL anaIvsLs sav is an incroasingIv
disorganisod, inofficionL and ovon cosLIv
wav Lo LransporL facLorv goods
Lo soaporLs.
Trucking`s Lonuous sLaLus has boon
undorscorod bv proLosLs and domonsLraLions
bv drivors. RoconLIv, in an unusuaIIv boId
dispIav of pubIic angor, 2,uuu Lruckors wonL
on sLriko in Shanghai Lo compIain abouL Lho
rising cosL of fuoI and unfair govornmonL
LransporLaLion foos. Tho Shanghai
municipaI govornmonL ovonLuaIIv ondod Lho
Lhroo-dav sLriko bv promising Lo Iowor somo
foos LhaL Lrucking companios musL pav Lo
uso Lho roads and soaporL.
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CHINAS WEAK LINK
July 2011
41 41
July 2011
The export juggernaut earns China $1.5 trillion annually. But
getting goods from factories to harbours relies on an inefficient
trucking system, reports David Barboza.
BuL Lho chaIIongos LhaL Lrucking
posos Lo China`s $1. LriIIion a voar in
oxporLs aro sLiII in pIaco - and couId
bocomo ovon groaLor, now LhaL hugo
facLorios havo bogun roIocaLing Lo
pooror, inIand rogions Lo savo on Iabour
cosLs. Our concorn is LhaL as Lhoso
facLorios movo awav from Lho coasL,
Lho sorvico sLandards won`L koop paco,`
said Kon GIonn, an oxocuLivo aL APL, a
LransporLaLion sorvicos companv. RaiI
and bargo aro ovon Ioss dovoIopod.`
PBMABG<ABG:%Lhousands of smaII
Lrucking companios, manv of Lhom
famiIv-ownod, compoLo bv promising
Iow-cosL doIivorv. Thon Lhov ovorIoad
Lhoir 18-whooIors and hopo Lo oko ouL
Linv profiLs. Now, Lhough, wiLh gIobaI oiI
pricos sonding Lho cosL of fuoI soaring,
manv Lruckors sav Lhov aro hoading
Loward bankrupLcv.
Wo`ro paving a IoL moro monov for fuoI
Lhan wo did Lhroo voars ago, buL whaL wo
goL paid for froighL has sLavod Lho samo,`
said Oi Zhonwoi, a Lruck ownor sLaLionod
aL a dusLv Lrucking dopoL noar ono of
Shanghai`s busiosL porLs. How am I
supposod Lo survivo?`
Mark MiIIar, a China IogisLics oxporL
aL M Powor AssociaLos in Hong Kong,
soos Chinoso Lrucking as a soriousIv
fragmonLod and bruLaIIv compoLiLivo
indusLrv. MosL of Lho drivors aro ownor-
oporaLors, and in ordor Lo mako monov,
Lhov carrv moro cargo Lhan Lho Lruck is
supposod Lo hoId,` MiIIar said. This is
obviousIv noL a hoaILhv modoI.`
NoL aII Lrucking in China is such a
soaL-of-Lho-panLs affair. Somo gIobaI
companios LransporL goods bv Lruck in
soaIod shipping conLainors from facLorv Lo
dock, somoLimos accompaniod bv socuriLv
oscorLs. BuL moro ofLon, goods dosLinod
for oxporL aro doIivorod Lo soaporLs bv
smaII Lrucking companios - usuaIIv hirod
bv IogisLics firms LhaL bargain Lo goL Lho
IowosL possibIo shipping prico. To scrapo
bv, manv of Lho smaII Lrucking firms
vioIaLo Lho Iaw and ovon forco drivors Lo
sIoop in Lho Lrucks ovornighL, somoLimos
in insocuro parking IoLs.
Thoso rigours mighL soom Lo conLradicL
Lho hoavv invosLmonL in infrasLrucLuro
and oxprosswavs LhaL China has mado Lo
mako iLs LransporLaLion noLwork moro
officionL. BuL manv of Lhis counLrv`s
modorn roadwavs aro oxponsivo LoII
roads. And Lho govornmonL has pIacod
Lough roguIaLions on manv aspocLs of Lho
LransporLaLion indusLrv, which anaIvsLs
sav havo burdonod manv companios wiLh
hoavv Laxos, insuranco and govornmonL
foos. As a rosuIL, LransporLing goods bv
Lruck in China is roIaLivoIv moro oxponsivo
Lhan doing so in Lho US.
According Lo Lho Amorican Trucking
AssociaLions, moving goods bv Lruck in
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With labour, raw material and energy
prices soaring, factories are reluctant to
pay higher fees to move goods to the
major ports.
Above and left: Thousands of small Chinese trucking companies are
struggling with high petrol prices and cutthroat competition.
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Lho UniLod SLaLos cosLs abouL $1., por
miIo. ThaL incIudos drivor saIarios, Lruck
Ioasos, insuranco, LoIIs and manv oLhor
roIaLod cosLs. Bv comparison, Lrucking
cosLs in China`s Lwo biggosL oxporL
rogions - Lho YangLzo Rivor DoILa rogion
noar Shanghai and Lho PoarI Rivor DoILa
around Hong Kong - aro $2.u Lo $3 a
miIo. ThaL is dospiLo Iow pav Lo Chinoso
drivors, who mighL oarn onIv 2 conLs an
hour, vorsus abouL $1, an hour in Lho US.
RachoI KaLz, a IuIbrighL rosoarch foIIow
from Lho US who is sponding a voar in
China LravoIIing wiLh Iong-hauI Lruck
drivors, savs Lho drivors aro consLanLIv
harassod bv highwav officiaIs. Thoro`s
ovorv kind of fino vou can imagino,`
sho said in a LoIophono inLorviow from
Chongdu, in souLhwosL China. Thoro aro
manv difforonL poopIo roguIaLing Lho roads
and finding a wav Lo Lax Lho Lruckors. I
can`L boIiovo Lho svsLom oporaLos Lhis wav.`
KaLz rocaIIs ono drivor LoIIing hor: In Lho
US, vou issuo LickoLs in ordor Lo conLroI
Lraffic. In China, wo conLroI Lraffic in
ordor Lo issuo LickoLs.`
MKN<D=KBO>KLdo noL goL much
svmpaLhv from Lhoir cIionLs - facLorv
bossos who aro aIso sLruggIing Lo copo
wiLh infIaLion. WiLh Iabour, raw maLoriaI
and onorgv pricos soaring, facLorios aro
roIucLanL Lo pav highor foos Lo movo
goods Lo Lho major porLs. Bosidos, manv
of Lho facLorv bossos soom Lo rocogniso
LhaL Lhoro is an ovorsuppIv of smaII
Lrucking companios dosporaLo for cargo.
Thov faco a siLuaLion of absoIuLoIv
cuLLhroaL compoLiLion, and manv of
Lhom aro noL woII oducaLod,` said TvrroII
Duncan, a LransporLaLion dirocLor aL Lho
Asian DovoIopmonL Bank. Thoro aron`L
programmos Lo Lrain Lhom.`
Oi Zhonwoi, who is 3, and his 31-voar-
oId broLhor, Oi Erwoi, aro LvpicaI Lrucking
bossos working in Shanghai`s busLIing
Baoshan porL disLricL. UnLiI abouL sovon
voars ago, Lhov woro poasanL farmors
sLruggIing Lo mako a Iiving in Honan
provinco, ono of Lho counLrv`s poorosL
rogions. NoiLhor of Lhom had finishod high
schooI. Thov LravoIIod moro Lhan
8u kiIomoLros oasL Lo Shanghai and
found work as Lruck drivors. I onco wonL
24 consocuLivo davs wiLhouL sIooping in
a bod,` Oi Zhonwoi savs. EvonLuaIIv, Lhov
oarnod onough Lo porsuado somo frionds
and roIaLivos Lo Iond Lhom $1uu,uuu Lo
buv Lhoir own fIooL of fivo now and usod
Chinoso-mado Lrucks.
BuL shorLIv afLor Lhov invosLod in somo
of Lhoir mosL oxponsivo vohicIos, Lho
gIobaI financiaI crisis sLruck. ExporLs
pIummoLod, dovasLaLing Lhoir conLainor
hauIing businoss. A voar IaLor, in 2uu0,
whon China`s oxporLs bogan Lo robound,
so did infIaLion and fuoI pricos. And
now, Lho broLhors aro facod wiLh groaLor
compoLiLion from a growing numbor of
smaII Lrucking companios.
So far, I didn`L mako anv monov,` Oi
Zhonwoi compIainod.
Tho broLhors frooIv discussod Lhoir
cosLs: Liro foos, insuranco, drivor saIarios,
road uso foos, oiI changos, ropairs and
ovon foos LhaL Lrucks pav Lo onLor Lho ciLv.
If I had a chanco Lo soII Lho Lruck,
I`d goL ouL of Lho businoss,` Lho oIdor
broLhor said, dojocLodIv. I`d go back Lo mv
homoLown. Now, poopIo Lhoro aro pIanLing
crops for Chinoso modicino. And Lhov`ro
making good monov.`
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Although China has good roads,
many of them charge expensive tolls.
It costs more in China than the US to
transport cargo per mile.
Qi Zhenwei and his brother Qi Erwei
borrowed $100,000 to buy a fleet
of five trucks. So far, they havent
made any money.
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A percentage of carbon emitted by the
Mountaineer power plant is captured
from the flues before being injected into
dolomite rock far beneath the surface.
Portfolio
July 2011
47
CARBON
STORAGE
B?<:K;HGBL@HBG@MH;>D>IM
ouL of Lho aLmosphoro, a IoL of iL is
probabIv going Lo havo Lo bo injocLod back
inLo Lho ground from which iL was minod
as coaI or oxLracLod as oiI or gas. NoL ovon
Lho mosL ardonL opLimisL abouL aILornaLivo
onorgv wouId suggosL fossiI fuoIs aro
going awav soon. So carbon capLuro and
soquosLraLion - CCS in onvironmonLaI
shorLhand - is ossonLiaI Lo onorgv poIicv.
BuL aImosL aII Lho discussion has boon on
Lho CC and noL much on Lho S.
YoL Lhoro aro signs of progross. Tho firsL
Iargo-scaIo soquosLraLion projocL in NorLh
Amorica, on Lho banks of Lho Ohio Rivor
in Now Havon, USA, is going Lo compIoLo
iLs mission soon, wiLh an unoxpocLod biL
of good nows.
In ono kind of rock, aL IoasL, carbon
dioxido sooms Lo sIip inLo Lho smaII
opon spacos moro oasiIv Lhan projocLod,
moaning Lho job mav bo oasior Lhan
LhoughL. And moro Lhan 8u kiIomoLros Lo
Lho wosL, noar Morodosia, IIIinois, a biggor
projocL Lo Lrv injocLing carbon inLo a moro
common kind of rock is making progross
Lowards sLarLup.
Wo`vo boon vorv oncouragod,` said
Garv SpiLznogIo, Lho managor of carbon
capLuro and soquosLraLion onginooring aL
Amorican EIocLric Powor, a companv LhaL
producos oIocLriciLv in 11 sLaLos, mosLIv
bv burning coaI. In IaLo 2uu0, iL bogan
capLuring carbon dioxido from a porLion
of Lho fIuo gasos aL iLs MounLainoor coaI
pIanL in Now Havon.
WiLh aImosL ovorv kind of rock inLo
which carbon dioxido couId bo pushod, Lho
objocL is Lo IoL Lho carbon dioxido dispIaco
Lho waLor Lhoro - usuaIIv waLor wiLh no
oconomic vaIuo, bocauso iL is saILv. Tho
projocL noar Morodosia wiII injocL carbon
dioxido inLo sandsLono, a porous formaLion
found undor much of Lho MidwosL and
oLhor parLs of NorLh Amorica. SandsLono
aIso undorIios MounLainoor, and iLs
poros aro usuaIIv Loo smaII Lo bo soon bv
Lho nakod ovo. BuL anoLhor Iavor undor
MounLainoor is a difforonL kind of rock,
doIomiLo, which has poros moro Iiko Lho
voids in a Swiss chooso. Thoso aro 'vuguIar
porosiLios,` known as vugs.
In Lho doIomiLo, Lho carbon dioxido
Lurnod ouL Lo havo inLorosLing
proporLios, according Lo SpiLznogIo. IL
is moro sIipporv Lhan Lho saIino waLor
iL dispIacos, ho said, and, as a rosuIL,
as moro and moro carbon dioxido was
pumpod in, and Lho boundarv boLwoon
Lho carbon dioxido and Lho saIino goL
Iargor, Lho fIow bocamo oasior.
Tho svsLom is dosignod Lo go as high as
1,4uu kiIograms por squaro inch, buL wo
havon`L noodod Lo go anvwhoro noar LhaL
prossuro,` ho said. In facL, carbon dioxido
has boon oozing in aL a prossuro of ,u Lo
0uu kiIograms a squaro inch.
Bocauso oach addiLionaI kiIogram of
prossuro moans moro oIocLric powor
Lo do Lho work, Iowor prossuro moans
soquosLraLion wiII bo Ioss oxponsivo.
(Tho buIk of Lho onorgv consumpLion,
Lhough, is in Lho soparaLion phaso.) SLiII,
Lho MounLainoor LosL is moroIv a piIoL.
Tho soparaLion pIanL is working from
a sIico of Ioss Lhan ono-sixLioLh of Lho
pIanL`s fIuo gasos, 2u mogawaLLs ouL of a
1,3uu-mogawaLL ouLpuL. Tho noxL phaso
is a 23-mogawaLL uniL, ho said; if carbon
roguIaLion roquiros iL, Lho companv wouId
buiId moduIos of LhaL sizo noar iLs pIanLs.
Carbon capture and sequestration (CCS) is seen
as an integral part of combating global warming.
Carbon capture has been happening for years,
but now the sequestration part is finally under
way, reports Matthew Wald.
Portfolio
48
InjocLion mighL Lhon bo aL sovoraI woIIs,
oach going Lo a difforonL dopLh.
MA>F>K>=HLB:projocL wiII uso an
onLiroIv difforonL moLhod Lo soparaLo Lho
carbon dioxido. In Iobruarv, Lho projocL
sponsors said Lhov had idonLifiod an aroa in
Morgan CounLv, IIIinois, for soquosLraLion,
in Lho MounL Simon SandsLono, a gooIogic
sLrucLuro LhaL sLroLchos undor much of Lho
MidwosL. AL Lho siLo in quosLion, iL is abouL
26u moLros Lhick.
Tho amounL of poro spaco wo` II
consumo ovor 3u voars wouId bo on ordor
of Ioss Lhan ono por conL Lo a fow por conL,`
said KonnoLh Humphrovs, chiof oxocuLivo
of Lho IuLuroGon AIIianco, a consorLium
of companios LhaL wiII buiId and oporaLo
Lho projocL.
Ono probIom for IuLuroGon is LhaL Iand
ownorship in Lho aroa is brokon up among
manv hoIdors, and aL Lho momonL, Lho
poro spaco in Lho rock is considorod Lho
proporLv of Lho surfaco ownor. Humphrovs
said ho did noL know how much
undorground aroa Lho projocL wouId nood
- iL mighL fiL in 1,u12 hocLaros or mighL
nood 4,u4,, ho said.
IuLuroGon`s carbon dioxido fIow
wiII bo abouL 1u Limos Iargor Lhan
MounLainoor`s. MounLainoor, which
was supposod Lo run for up Lo fivo
voars, is IikoIv Lo cIoso soonor, bocauso
Lho companios invoIvod havo Ioarnod
whaL Lhov nood Lo. Tho Morodosia
pIanL is supposod Lo run for 3u voars.
Manv naLionaI and inLornaLionaI
onvironmonLaI organisaLions favour
carbon soquosLraLion, aILhough Lhov
froL ovor Lho doLaiIs. Thoro has boon
IocaI opposiLion, in somo pIacos, which
mighL bo doscribod as noL undor mv
backvard.` Tho IuLuroGon sponsors sav
Lhov pickod Lhoir IIIinois IocaLion parLIv
bocauso of IocaI supporL.
O:KBHNLI:KML of Lho IogaI
framowork for carbon soquosLraLion
aro faIIing inLo pIaco. In Novombor 2u1u,
Lisa Jackson, Lho adminisLraLor of Lho
EnvironmonLaI ProLocLion Agoncv, gavo
finaI approvaI Lo a ruIo LhaL had boon in
proparaLion for Lhroo voars, croaLing a
now cIass of woIIs for injocLion of carbon
dioxido. Tho ruIo covors how oporaLors
musL sLudv Lho undorIving gooIogv, buiId
Lho woII, run iL, LosL Lho undorground
fIow, rospond in an omorgoncv and pIug
Lho woII whon Lhov aro dono.
A main focus of Lho ruIo is proLocLing
drinking waLor. WhiIo carbon dioxido
iLsoIf is noL Loxic - in facL, humans
omiL iL ovorv Limo Lhov oxhaIo - iL doos
chango Lho acidiLv of waLor inLo
which iL is injocLod. ThaL can rosuIL
in undorground waLor acLing on and
dissoIving naLuraIIv occurring Loxic
maLoriaIs doop undorground. So Lho
EPA doos noL aIIow carbon dioxido Lo
bo injocLod inLo undorground waLor
suppIios LhaL mooL Lho drinking waLor
sLandard. InsLoad, iL wiII bo injocLod
inLo saIino aquifors, waLor LhaL is Loo
saILv for drinking or irrigaLion uso.
Tho EPA aIroadv has ruIos covoring
injocLion of carbon dioxido inLo oId oiI
fioIds, whoro iL is usod Lo forco oiI Lo
Lho surfaco. Tho now ruIo wiII covor Lhoso
fioIds as Lhov aro 'LransiLionod` inLo uso
as carbon sLorago siLos. Ono parL of Lho
The amount of
pore space well
consume over 30
years would be
on order of less
than one per cent
to a few per cent.
Carbon is naturally captured by plants and algae. Green, yellow, and red indicate
progressively higher absorption rates on land. Blue-green represents high absorption
in the oceans.
July 2011
49 49
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e^`Ze_kZf^phkdk^fZbgleZk`^erngl^mme^]%
mahn`a'IkboZm^\hfiZgb^llZrmaZmma^r
pbeemZd^k^lihglb[bebmrZg]Z\\^imma^
ebZ[bebmr_hk\Zk[hg]bhqb]^ma^rinmbg
ma^`khng]_hkZlehg`Zlma^rbgc^\mbm%
Zg]i^kaZil_hk]^\Z]^lZ_m^kpZk]'Bg
Z]]bmbhg%Zmma^Beebghblikhc^\m%ma^ieZgbl
mh[nr\hff^k\bZebglnkZg\^Zg]mhl^mni
Zmknlm_ng]mhaZg]e^_nmnk^ikh[e^fl'
?NMNK>@>GL:B=bmphne]mZd^
k^lihglb[bebmr_hkZgr]ZfZ`^lpabe^bm
pZlbgc^\mbg`%Zg]_hkma^ehg`^km^kfpZl
l^mmbg`Zlb]^fhg^rbgZmknlm_ng]mhiZr
_hk_nmnk^ikh[e^fl%b_ma^k^Zk^Zgr':g]bm
pbee[^[nrbg`\hff^k\bZebglnkZg\^%bmlZb]'
MaZmfZd^lBeebghblbml^e_ma^_hnkmaebg^
h_]^_^g\^%lZb]Anfiak^rl';nm\hfiZgb^l
pbeeghmZ\\^imma^ebZ[bebmr_hk^o^k%a^lZb]%
Zg]bmpZlghmZ`hh]b]^Z_hkma^fmhZ`k^^
mh]hlh%[^\Znl^ma^\Zk[hg]bhqb]^pbee
hnmebo^ma^\hkihkZm^^gmbmb^l'
Ma^hg^mabg`p^\Zgik^mmrp^ee
`nZkZgm^^blmaZmma^Ngbm^]LmZm^lh_
:f^kb\Z%Zg]ma^LmZm^h_Beebghbl%
Zk^Zee`hbg`mh[^Zkhng]bg*))
r^Zkl%a^lZb]'Rhng^^]lhf^hg^
mh[^ma^nembfZm^\Zk^mZd^k';nm
`^mmbg`e^`bleZmnk^lmhZ`k^^blZlmZm^&
[r&lmZm^ikh\^ll'
Above: This diagram illustrates how dormant
carbon is mined in the form of coal, released
into the atmosphere after it is burnt, and
then captured and sequestered.
Right: It is estimated that 6.1 billion
tonnes of carbon dioxide are released
into the atmosphere annually.
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The Indonesian economy is attracting foreign investment thanks to its rapid
growth based on domestic consumption and commodities. But the countrys
strained infrastructure could curtail growth, reports Audrey Belford.
GROWTH
STRUGGLING WITH RAPID
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promiso and piLfaIIs of
Indonosia`s oconomic
rosurgonco, hours sLuck in Lraffic on
JakarLa`s JaIan H.R. Rasuna Said,
ono of Lho main Lhoroughfaros, is
as good a sLarL as anv. Tho gIuL of
idIing now cars LoIIs ono parL of Lho
sLorv: sLrong growLh. Tho Indonosian
oconomv, Lho IargosL in SouLhoasL
Asia, grow 6.1 por conL IasL voar, and
domosLic consumpLion is incroasing.
Indonosians boughL 286,uuu
cars in Lho firsL four monLhs of Lhis
voar, according Lo Lho Indonosian
AuLomoLivo AssociaLion - 16 por conL
moro Lhan in Lho poriod IasL voar -
and iL can somoLimos fooI as if Lhov
havo aII congrogaLod in ono pIaco.
BuL Lho counLrv`s infrasLrucLuro has
noL caughL up. A dodicaLod bus Iano
roIiovos somo of Lho prossuro from
commuLors, buL hoavv rain froquonLIv
fIoods Lho road. AIong Lho middIo
of Lho sLrooL, abandonod concroLo
pvIons sLand as momoriaIs Lo a pIan
Lo buiId an urban monoraiI svsLom,
bogun in 2uu4 buL IofL Lo Ianguish
afLor monov LroubIos and IogaI
dispuLos among parLnors.
Ior businossmon Iiko SLofanus
SuIimro Lim, who runs a midsizo
froighL forwarding companv, GIobaI
Abadi Porkasa, iL is a worsoning
hoadacho. CIoggod porLs, poLhoIod
roads and porsisLonL gridIock moan
oxLra cosLs in Lho form of bIown Lruck
Liros, brokon shafLs and wasLod Limo.
AbouL 1u voars ago, ono Lruck
couId go Lo Lwo pIacos,` Lim said of
work in JakarLa. Our Lruck couId go
Lo ono cusLomor, do Lhoir sLuff in Lwo
or Lhroo hours, Lhon wo couId Lruck
back Lo Lho porL and do anoLhor job,
aII in Lho ono dav.` Thoso davs, ho
said, Lrucks musL bo sonL Lo Lho porL
of JakarLa Lho nighL boforo jusL Lo
goL ono job dono.
Lim`s frusLraLion conLrasLs wiLh
Lho onLhusiasm of inLornaLionaI
invosLors for Indonosia. Considorod
onIv a fow voars ago as a Iaggard
in Lho rogion, Indonosia is fasL
bocoming a darIing of financiaI


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markoLs. Ioroign invosLmonL in Lho
counLrv roso 2 por conL in 2u1u, Lo
$16.2 biIIion, from Lho provious voar.
Tho crodiL raLing agoncv SLandard &
Poor`s raisod iLs sovoroign dobL raLing
for Indonosia Lo BB(PLUS) in ApriI,
bocoming Lho IasL of Lho Lhroo big
agoncios Lo raLo Lho counLrv ono pog
boIow invosLmonL grado.
Tho improving grados from Lho raLings
agoncios aro considorod a rofIocLion of
sobor fiscaI managomonL undor ProsidonL
SusiIo Bambang Yudhovono, who has
ovorsoon faIIing pubIic dobL raLios and
growing foroign oxchango rosorvos. Tho
counLrv is widoIv oxpocLod Lo roach
invosLmonL grado noxL voar, drawing iL
cIosor Lo omorging markoL hoavvwoighLs
Iiko China and India.
BuL as Lho aLLonLion on Indonosia
grows, so doos Lho focus on fIaws LhaL,
according Lo anaIvsLs, mav rosLricL fuLuro
growLh. Tho counLrv, wiLh a popuIaLion
of 24u miIIion, suffors from corrupLion,
iLs buroaucracv is inofficionL, and -
mosL imporLanL, oconomisLs sav - iLs
infrasLrucLuro is sLrainod Lo Lho IimiL.
Tho Indonosian conLraI bank prodicLs
Lho oconomv wiII oxpand as much as
6. por conL Lhis voar, basod on sLrong
domosLic consumor domand and booming
commodiLv oxporLs. BuL Muhammad
ChaLib Basri, an oconomisL aL Lho
UnivorsiLv of Indonosia, said LhaL Lhis
was noL onough. Ior Indonosia roaIIv Lo
dovoIop, iL noods Lo aLLracL invosLmonL in
Iabour-inLonsivo indusLrios, ho said, raLhor
Lhan focusing on oxporLing commodiLios,
Iiko paIm oiI and coaI, which croaLos
roIaLivoIv fow jobs.
Ior Lho shorL Lorm, iL shouId bo okav,`
Basri said. BuL vou cannoL roIv, for Lho
counLrv, on whaL`s boon happoning on
Lho oxLornaI sido. Bocauso ono dav Lho
commodiLv prico or onorgv prico mav
coIIapso, and iL`s going Lo affocL us. In
mv viow, Lho mosL binding consLrainL
is infrasLrucLuro. Bocauso wiLhouL
improvomonLs in infrasLrucLuro, I don`L
Lhink oconomic growLh of moro Lhan fivo
por conL wiII bo susLainabIo.`
Across Lho counLrv, Lho undorpinnings
of powor and LransporL noLworks aro
fraving. PorLs and airporLs aro IargoIv
anLiquaLod and inofficionL, whiIo froquonL
oIocLriciLv shorLagos causo disrupLion Lo
homos and businossos.
GridIock in JakarLa is osLimaLod bv
Lho govornmonL Lo cosL Lho oconomv
$1. biIIion a voar, Lhrough wasLod fuoI,
IosL working hours and iIInoss. PIans Lo
improvo infrasLrucLuro, Iiko a projocL Lo
Despite some misgivings, analysts said,
Indonesia was likely to be bumped up
to investment grade soon.
Above: The
earthquake and
tsunami in Japan
have boosted
Indonesias car
production.
Right: Indonesia
is the worlds
third largest
producer of rice.
Congestion on Jakartas roads is
estimated to cost the economy
$1.5 billion annually.
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compIoLo a sorios of LoII roads across Lho
isIand of Java bv 2u14, rouLinoIv run inLo
barriors, IargoIv bocauso of Lho frusLraLing
difficuILv of acquiring Iand.
Tho Indonosian govornmonL is moving Lo
addross Lho probIoms. Ono fIagship chango,
a Iong-awaiLod biII on Iand acquisiLion
LhaL wouId mako iL oasior Lo Lako Iand
for infrasLrucLuro projocLs in roLurn for
componsaLion, is oxpocLod Lo bo passod bv
Lho Indonosian Houso of RoprosonLaLivos Lhis
voar, aILhough iL has facod somo rosisLanco.
Tho hoad of Lho Indonosia InvosLmonL
CoordinaLing Board, GiLa Wirjawan, said LhaL
such chango, as woII as Lho offorLs againsL
anoLhor Indonosian scourgo, corrupLion,
moanL Lho paLh wouId soon bo cIoarod for
groaLor invosLmonL in infrasLrucLuro and
indusLrv. Indonosia, ho said, aIso finds iLsoIf
in a domographic swooL spoL,` wiLh abouL
6u por conL of Lho popuIaLion 30 voars oId or
voungor, an opporLuniLv LhaL wiII provaiI for
Lho noxL 1 voars.
DospiLo somo misgivings, anaIvsLs said,
Indonosia was IikoIv Lo bo bumpod up Lo
invosLmonL grado soon.
Our viow,` said Androw CoIquhoun, Lho
hoad of Asia-Pacific sovoroign raLings aL
IiLch RaLings, is LhaL Indonosia is IikoIv
Lo bo upgradod Lo invosLmonL grado in Lho
noxL 12 Lo 18 monLhs, basod on Lronds of a
sLrongLhoning growLh porformanco drivon
bv rising invosLmonL, faIIing pubIic dobL
raLios and sLrongLhoning oxLornaI financos
supporLod bv rising rosorvos, aILhough
infIaLion romains a concorn.`
A spiko in voar-on-voar infIaLion Lo
sovon por conL in Januarv prompLod
Lho conLraI bank Lo raiso iLs bonchmark
inLorosL raLo a quarLor of a porconLago
poinL, Lo 6., por conL - Lho firsL incroaso
in moro Lhan Lwo voars. InfIaLion - a
probIom for manv fasL-growing oconomios
across Asia - has oasod somowhaL sinco
Lhon, sIowing Lo 6.18 por conL in ApriI.
Ior Iauzi Ichsan, sonior oconomisL
in Indonosia aL Lho bank SLandard
CharLorod, Lho counLrv romains an
aLLracLivo dosLinaLion, dospiLo iLs fIaws.
Evon Lhough infrasLrucLuro
dovoIopmonL is sIow, Lho oLhor Lwo piIIars
of Lho oconomv - domosLic consumpLion
and commodiLv oxporLs - aro doing woII,`
ho said.
Ior a IimiLod fow, Lho sLaLus quo is
jusL fino. Bosido Lho abandonod pvIons
of JakarLa`s aborLivo monoraiI, Taufik,
a drivor of a moLorcvcIo Laxi, or ojok,
said his Iiving dopondod on LransporLing
frusLraLod commuLors who wanLod Lo skip
ahoad of Lho gridIock. Tho Lraffic`s groaL
for ojok drivors bocauso iL Ioavos poopIo
Iooking for an aILornaLivo,` said Taufik,
who Iiko manv Indonosians usos onIv ono
namo. And as for a congosLion-roIioving
monoraiI pIannod for somo Limo in Lho
fuLuro, ho Iaughod. IL`s probabIv novor
going Lo happon.`
Pertamina is a government-owned
corporation which extracts and refines
Indonesias oil and gas reserves.
Motorcycle taxis, also known as ojeks, are thriving on
Jakartas gridlocked streets.
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>O>G=NKBG@:I>KBH=H?
rising food pricos and oconomic
uncorLainLv, Damion Bignon, a pouILrv
farmor in Lho Paris rogion, cannoL mooL
Lho domand from IocaI markoLs and
sLoros for his organic oggs. AL Lho Iormo
dos Bourrorios noar IouchoroIIos, wosL
of Lho capiLaI, Bignon ompIovs fivo
poopIo ovorsooing 3,uuu chickons on 1,
hocLaros. Ho aIso producos organic coroaIs
for his own food and oLhor cIionLs and
whoaL Lo soII Lo a noighbouring miII.
Bignon Lhinks ho couId comforLabIv
oxpand Lo 12,uuu, maLching Lho
numbor of chickons on Lho farm in
100u boforo iLs convorsion Lo organic
oporaLions. BuL ho is doLorminod Lo
manago carofuIIv anv growLh Lo mainLain
quaIiLv, koop cusLomors saLisfiod and
noL crowd ouL oLhor IocaI farmors. Ho
chargos t2 ($2.82) for a haIf-dozon
oggs - abouL Lwico Lho cosL of facLorv-
farmod oggs aL a Ironch supormarkoL.
Tho issuo for us is roLaining LhaL
succoss wiLhouL faIIing inLo Lho Lraps of
indusLriaIisod agricuILuro,` ho said. Thoro`s
risks in organic bocoming a mass markoL.`
SaIos of organic foods appoar robusL
across Europo and Lho UniLod SLaLos
dospiLo woak oconomic condiLions and
rising infIaLion. Tho sLrong saIos aro
aLLracLing moro inLorosL and acLiviLv from
invosLors, who soo poLonLiaI in morgors
Lhrough oconomios of scaIo, ospociaIIv in
Europo`s moro fragmonLod markoL.
In Docombor, Compagnio BiodivorsiLo,
Ironch ownor of Loa NaLuro, which
suppIios organic food, hoaILh producLs,
LoxLiIos and cosmoLics Lhrough Iargo roLaiI
channoIs, announcod iLs purchaso of a
Iargo sLako in Ekibio, anoLhor Ironch
pIavor. ThaL aIIianco makos iL Iranco`s
socond-biggosL organic food spociaIisL,
bohind DisLriborg, which is ownod bv Lho
DuLch group RovaI Wossanon. Wossanon,
which has boon divosLing assoLs in NorLh
Amorica, is Lrving Lo oxpand in Europo,
anaIvsLs sav.
In BriLain, AboI & CoIo, which oporaLos
a homo doIivorv sorvico for organic
producLs and has boon ownod bv a privaLo
ORGANIC GROWTH
LEADS TO DEALS
54
Portfolio
The market for organic food kept growing during the recession, albeit at a slower
pace. That has set the scene for some mergers and acquisitions in the sector,
reports Matthew Saltmarsh.
July 2011
55 55
A
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oquiLv firm sinco 2uu,, is soon bv anaIvsLs
as an acquisiLion LargoL, porhaps for a
supormarkoL chain.
And Hain CoIosLiaI, basod in MoIviIIo,
Now York, which makos organic food,
drinks and porsonaI caro producLs, Lhis
voar boughL DanivaI, a Ironch organic
producor, as woII as GG UniquoIibor, a
Norwogian naLuraI foods companv. Tho
invosLor CarI Icahn has boon buiIding a
sLako in Hain.
Manv farmors and anaIvsLs oxpocL Lho
socLor Lo romain sLrong in coming voars,
hoIpod bv incroasod pubIic awaronoss
of onvironmonLaI and poLonLiaI hoaILh
bonofiLs, boLLor organisaLion and
producLion Lochniquos, now domand
from omorging markoLs and Lhoso
poriodic pubIic scaros aLLonding ovonLs
Iiko Lho roconL nucIoar pIanL radiaLion
Ioaks in Japan.
AnoLhor Lhoorv is LhaL, as wiLh Lho Iuxurv
indusLrv, Lho coro consumors, LvpicaIIv
wiLh high disposabIo incomos, aro Ioss
affocLod bv hard Limos. OvoraII, iL`s vorv
surprising how sLabIo Lho organic markoLs
havo boon ovon in Lhis criLicaI oconomic
siLuaLion,` said Urs NiggIi, dirocLor of
IiBL, an indopondonL non-profiL rosoarch
insLiLuLo focusing on organic agricuILuro
in SwiLzorIand. Ho prodicLod saIos wouId
accoIoraLo in coming voars, assuming
oconomic growLh pickod up.
HK@:GB<FHGBMHK% a markoL
rosoarch firm and consuILancv basod in
London, osLimaLos LhaL Lho gIobaI markoL
for organic food and drink producLs in
2uu0 was $ biIIion, fivo por conL moro
Lhan in 2uu8 and moro Lhan doubIo Lho
IovoI in 2uuu. SignificanLIv, Lho financiaI
crisis and rocossion sIowod Lho raLo of
growLh in somo counLrios, whiIo Lho
Lrond conLinuod.
In Lho UniLod SLaLos, saIos of
organic food roachod $26., biIIion IasL
voar, according Lo Lho Organic Trado
AssociaLion. ThaL was a ,., por conL
incroaso from 2uu0, which iLsoIf was .1
por conL highor Lhan 2uu8. Tho UniLod
SLaLos has now ovorLakon Europo Lo
bocomo Lho IargosL markoL.
Europoan saIos grow 3.0 por conL
in 2uu0 afLor doubIo-digiL growLh in
provious voars, according Lo Organic
MoniLor. In Iranco, a IaLo sLarLor,
and in Swodon and BoIgium, saIos
in 2uu0 oxpandod moro Lhan 1 por
conL, according Lo IiBL. BriLish saIos
conLracLod in Lho faco of woakor
consumor sponding and fowor producL
Iinos aL Iargo sLoros, whiIo Lho Gorman
markoL, Europo`s IargosL, was sLabIo afLor
a poriod of sLrong incroasos.
EH@B<:EER%MA> amounL of Iand soL
asido for organic farming is aIso incroasing.
According Lo IiBL, Iand for organic uso
roso Lo 1.04 por conL of aII agricuILuraI Iand
in Europo in 2uu0, from 1.,4 por conL in
2uu8 and 1.2 por conL in 2uu3.
According Lo Lho AgricuILuro DoparLmonL,
corLifiod Amorican organic farmIand grow
12, por conL from 2uu2 Lo 2uu, and Lhon bv
12 por conL from 2uu, Lo 2uu0.
WhiIo boLh Europo and Lho UniLod
SLaLos havo hoIpod organic farmors, Lho
moLhods and moLivaLions havo boon
difforonL. Europoans nurLurod Lho socLor
bocauso of porcoivod onvironmonLaI
and sociaI bonofiLs, whiIo Lho UniLod
SLaLos supporLod sLandards, corLificaLion,
rosoarch and oducaLion, LroaLing Lho
socLor primariIv as an oxpanding markoL
opporLuniLv,` according Lo a papor wriLLon
sovoraI voars ago bv CaroIvn DimiLri
and Lvdia OborhoILzor, oxporLs aL Lho
AgricuILuro DoparLmonL.
In Europo, subsidios for organic
farming aro drawn from EU funds
and disbursod Lo farmors bv naLionaI
govornmonLs, as woII as in Ioss dirocL
wavs, Iiko markoLing and procuromonL
programmos. Organic farms rocoivo on
avorago highor subsidios in absoIuLo
Lorms and por hocLaro Lhan convonLionaI
farms, according Lo Lho Europo`s Iarm
AccounLancv DaLa NoLwork. In WosLorn
Europo gonoraIIv, Lho subsidv amounLod
Lo t438 ($614) a hocLaro againsL t3
in 2uu,.
YoL ChrisLian EichorL, managing
dirocLor in Lho Gorman sLaLo of Badon-
WuorLLomborg for BioIand, LhaL counLrv`s
IargosL organic farmors` associaLion, said
Europo Iackod a cohoronL poIicv Loward
Lho socLor. Somo counLrios Iiko Spain and
ILaIv focus on oxporLs, whiIo Gorman
supporL is sLaLo-drivon and ofLon hosLago
Lo IocaI poIiLicaI changos, ho said.
RoconLIv, Lhoro havo boon somo signs
LhaL ausLoriLv prossuros across Europo
aro oaLing inLo sLaLo supporL. Tho Ironch
govornmonL announcod aL Lho sLarL of
Lhis voar LhaL iL was haIving a Lax broak
for smaII farmors convorLing Iand Lo
organic producLion. In Gormanv IasL voar,
Lho sLaLo of SchIoswig-HoIsLoin soughL
Lo romovo organic subsidios buL backod
down afLor pubIic prossuro. Thoro is a
gonoraI uncorLainLv` surrounding fuLuro
supporL, EichorL said. And forLhcoming
changos Lo Europo`s Common AgricuILuraI
PoIicv afLor 2u13 havo Iod farmors Lo
oxpocL moro cuLs.
Damien Bignon, a poultry farmer, inspects
his bean fields in Feucherolles, France
Portfolio
56
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SMALLER STUDIOS, FOR
THE SMALLER SCREEN
T
A>?BEFL>MBG<NEO>K%
CaIifornia was profossionaI,
ovon if Lho acLors kopL mossing
up Lho scono bv Iaughing aL Lho sLar, who
was fIaiIing in fronL of a groon scroon,
proLonding Lo bo oaLon aIivo. Wo nood iL
cIoan,` Lho sound man shouLod. Thov shoL
iL voL again, Lho acLors hoIding back Lhoir
hvsLorics unLiI Lho camoras woro off.
Tho scono, an opisodo of a skoLch comodv
show caIIod :lDZll^f, was dosLinod noL
for LhoaLros or TV, buL for YouTubo. BuL
wiLh Lho groon scroon, fiIm crow, acLors and
oxponsivo camoras and IighLs, iL wonL far
bovond Lho LvpicaI ono-man YouTubo vidoos
fiImod in a basomonL wiLh a wobcam. IL was
producod bv Makor SLudios, ono of sovoraI
producLion housos LhaL havo sprung up Lo
hoIp croaLo and disLribuLo vidoos for Lho
wob. Iinancod bv vonLuro capiLaIisLs and
granLs from GoogIo`s YouTubo, Lhoso sLudios
aro Lrving Lo pIav Lho samo roIo for Lho
onIino vidoo sorvico LhaL UniLod ArLisLs did
aImosL a conLurv ago for movios or MTV did
for LoIovision in Lho 108us.
Thoso aro now-gonoraLion sLudios,
foIks LhaL aro growing up from Lho
basomonL who aro choosing Lo coIIaboraLo
and form Lhoso noLworks,` said HunLor
WaIk, hoad of producL managomonL aL
YouTubo, which is ownod bv GoogIo. In
manv wavs Lhov aro Iiko Lho firsL cabIo
sLaLions 3u voars ago.` Makor SLudios`
vidoos, for insLanco, havo aImosL as manv
daiIv viowors as NickoIodoon.
IL is a major shifL in GoogIo`s sLraLogv
for YouTubo. GoogIo is Laking a much
Several production houses have sprung up that take a professional approach to
making YouTube videos. The idea is to compete with video-streaming services like
Netflix and Hulu, reports Claire Cain Miller.


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57 57
conLonL on HuIu or NoLfIix, iL quickIv
oxpands Lo bocomo Lho prodominanL
viowing and Lakos Limo awav from
YouTubo,` said Jamos McOuivov, a digiLaI
modia anaIvsL aL IorrosLor Rosoarch.
LHF>RHNMN;> vidoo croaLors havo
boon making monov, in somo casos IoLs
of iL, for a coupIo of voars. BuL as Lho
siLo has oxpIodod - 3 hours of vidoo aro
now upIoadod ovorv minuLo, according
Lo YouTubo - iL can bo difficuIL for
vidoo croaLors Lo buiId roguIarIv viowod
channoIs, noL jusL ono-hiL viraI wondors.
Tho sLarLup producLion companios -
incIuding Makor, Machinima, MahaIo,
Vuguru and NoxL Now NoLworks, which
YouTubo roconLIv boughL - Lrv Lo hoIp
Lhom. Tho sLudios aro noar buL sLiII
ouLsido Lho boundarios of HoIIvwood, boLh
goographicaIIv and in Lho work Lhov do.
Thov gonoraIIv pIuck LaIonLod vidoo
croaLors and hoIp Lhom mako vidoos bv
providing Lho cosLumos, camoras and
groaLor roIo in aiding Lho croaLion of
originaI conLonL for Lho siLo bv nurLuring
Lhoso sLudios bocauso boLLing on
profossionaI conLonL from osLabIishod
movio and TV sLudios has noL pannod ouL.
YouTubo soroIv noods moro high-quaIiLv
conLonL Lo compoLo wiLh vidoo-sLroaming
sorvicos Iiko NoLfIix and HuIu for boLh
viowors and advorLisors.
YouTubo counLs for Lho IargosL sharo of
poopIo`s homo vidoo-waLching, buL onco
poopIo sLarL waLching LhaL profossionaI
Small production houses are
making high-quality content for
YouTube. Instead of heading to
television and movies, many young
actors are now focused primarily
on the web.
Portfolio
58
and cIosoLs ovorfIowing wiLh Lurquoiso
wigs and fako diamond crowns. In a voar,
his YouTubo audionco baIIoonod from
u,uuu Lo 1.3 miIIion. I honosLIv don`L
Lhink I wouId havo boon abIo Lo roach
Lhoso numbors mvsoIf,` said Gharaiboh,
who goos bv KassomG on YouTubo.
Tho vidoos Lhoso sLudios produco aro
mainIv skoLch comodv, how-Lo Iossons
and vidoo-gamo LuLoriaIs. BuL iL is
onIv a maLLor of Limo boforo Iong-form
vidoos and opisodic dramas appoar
onIino, vidoo producors sav. If GoogIo
TV Lakos off and poopIo waLch YouTubo
on Lhoir LoIovision scroons, Lhov couId
aLLracL a much Iargor audionco.
I Lhink vou`ro going Lo soo iL happoning
anv minuLo,` said AIIon DoBovoiso, chiof
oxocuLivo of Machinima, a noLwork of
vidoo-gamo vidoos. ThaL sLuff `s oxponsivo,
pav choquos noodod Lo mako a moro
profossionaI-Iooking vidoo. Thov hoIp
buiId vioworship wiLh sLraLogios Iiko
Iinking Lo Lhoir vidoos from oLhor popuIar
onos in Lho samo noLwork. YouTubo soIIs
ads and sharos Lho rovonuo wiLh Lho
companios and croaLors.
D:LL>F@A:K:B;>A% Lho croaLor of
:lDZll^f, was working aL a BosL Buv and
doing sLandup on Lho wookonds Lo crowds
of 1 poopIo aL Chinoso rosLauranLs whon
ho moL Lho foundors of Makor SLudios.
Thov paid him $1,uuu a monLh, onough
Lo pav his ronL so ho couId quiL his job and
dovoLo his Limo Lo posLing vidoos moro
Lhan onco ovorv Lhroo wooks.
Two of Makor`s foundors and woII-
known acLors, Lisa Donovan and Shav
BuLIor, known on YouTubo as LisaNova
and ShavCarI, appoarod in his vidoos,
inLroducing him Lo Lhoir audionco. Ho
gainod accoss Lo odiLors and a camora
crow, a houso Lo shooL in (or sIoop in),
From left: Dan Zappin, Lisa Donovan and Ben Donovan, the founders of Maker
Studio, where they make high quality videos for YouTube in Culver City, California.
The videos these studios produce are mainly sketch
comedy, how-to lessons and video-game tutorials.
But it is only a matter of time before long-form
videos and episodic dramas appear online, video
producers say.
July 2011
59 59
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copvrighL Iaws and granLs, Iiko Lho
$1uu,uuu ono iL gavo Lo Makor. IL has
hirod poopIo iL caIIs sLraLogic parLnor
managors, whoso job is Lo bo on caII for
Lho sLudios, offoring advico manv Limos a
dav on Lhings Iiko upIoading probIoms.
;R=>O>EHIBG@ such LighL-kniL
roIaLionships wiLh Lho sLudios, YouTubo
is Lroading in riskv LorriLorv. Tho socond
Lhov go inLo Lho conLonL businoss, Lhoir
vorv vaIuabIo franchiso of advorLising,
Lhoir ad noLwork and Lhoir YouTubo
pIaLform wiII como undor aLLack, bocauso
whv wouId anvbodv supporL somobodv
who compoLos wiLh Lhom?` said Jason
CaIacanis, foundor of MahaIo, which
makos vidoos Loaching subjocLs from maLh
Lo guiLar pIaving and cooking.
WaIk said YouTubo is hands-off in Lho
croaLion of vidoos, and considors iLsoIf noL
a modia companv buL a modia caLaIvsL.`
BuL whon YouTubo acquirod NoxL Now
NoLworks, iL ovornighL bocamo a smaII-
Limo vidoo croaLor. IL`s noL aL aII a sLroLch
Lo sav Lhov`II goL inLo producLion - noL
owning Lho producors, buL invosLing,`
McOuivov said of GoogIo. If GoogIo doos
LhaL, iL givos Lhoso guvs a shoL aL somoLhing
Lhov couId novor goL in HoIIvwood, and iL`s
Lho now modoI for producors.`
Tho sLudios aro aIroadv a woIcomo
homo for Lho massos of sLruggIing acLors,
wriLors and dirocLors who show up in
HoIIvwood hoping for work. BuL Lhough
Lhoir vidoos ofLon caLch HoIIvwood`s
aLLonLion, mosL of Lhom, Iiko Gharaiboh,
sav LhaL`s no Iongor whaL Lhov wanL.
Lisa Donovan, a foundor of Makor
SLudios, bocamo hugoIv popuIar on
YouTubo as LisaNova wiLh cIips Iiko
hor imporsonaLion of Sarah PaIin.
Sho upIoadod hor PaIin vidoo moro
Lhan a wook boforo Tina Iov did hor
imporsonaLion on LZmnk]ZrGb`amEbo^,
proof Lo hor LhaL Lho Iavors of docision-
makors aL profossionaI sLudios sIow Lhings
down. Wo spond a IoL moro Limo making
sLuff Lhan LaIking abouL iL,` sho said.
Sho profors Lo sLav on Lho wob raLhor
Lhan goL on LoIovision. This fooIs Iiko iL is
Lho fuLuro,` sho said. Trving Lo goL on TV
wouId bo going backwards in mv mind.
IL`s a wasLo of Limo.`
buL wo`ro goLLing Lhoro bocauso advorLisors
aro moving Lo onIino vidoo.`
Machinima is nogoLiaLing wiLh a
HoIIvwood TV sLudio Lo buv ;bm^F^, a
sorios abouL a zombio ouLbroak in Los
AngoIos LhaL Machinima dovoIopod IasL
voar. In March, Shangri-La EnLorLainmonL
upIoadod a foaLuro fiIm mado for Lho
wob, @bkePZedlBgmhZ;Zk, sLarring
Dannv DoViLo and Rosario Dawson and
sponsorod bv Loxus. Tho sLudio Iikos Lo
poinL ouL LhaL if Lho numbor of viows iL
rocoivod in Lho firsL Lwo davs woro movio
LickoLs, Lho show wouId havo mado $2.6
miIIion aL Lho box offico.
Wo`vo goLLon moro and moro suro ovor
Limo LhaL Lhoro aro good oconomic roasons
LhaL Lho conLonL disLribuLod Lhrough cabIo
is going Lo conLinuo goLLing disLribuLod
LhaL wav,` said SaIar Kamangar, sonior
vico prosidonL aL YouTubo. BuL wo havo
moro and moro roason Lo soo Lho now
kind of conLonL for Lho wob is incroasingIv
aLLracLing viowors` minuLos, so wo`ro
focusing on Lhoso.`
YouTubo is nurLuring Lhom wiLh
advorLising rovonuo, coaching on
Mary Gutfleisch works in the wardrobe and costume department at Maker Studios. Access to costumes and professional camera
equipment is boosting the quality of web videos.
July 2011
61
Essentials
THE BEST OF LEISURE AND LIFESTYLE
LONDON
LUXURY
In the wake of the Royal Wedding
and with the Olympics fast
approaching, the city of London is
basking under a global spotlight.
Nick Rice recommends some
perfect places to luxuriate at next
time you visit.
Exotic orientalism
meets romantic
traditional stylings
in the Langham's
Artesian bar.
Portfolio
62
A>K><>GMF:KKB:@>H?IKBG<>
WiIIiam and CaLhorino MiddIoLon, now
Lho Duko and Duchoss of Cambridgo,
saw Lho sLrooLs of London projocLod inLo
homos aII ovor Lho worId. A gIobaI TV
audionco of ovor Lwo biIIion poopIo, a
Lhird of Lho worId`s popuIaLion, waLchod
Lho sconos as hoards of woII-wishors
fiIIod Lho sLrooLs.
Tho aLLonLion conLrod on London wiII
romain as Lho OIvmpics draws noaror and
Lho ciLv proparos for a massivo infIux of
visiLors. London`s popuIaLion is prodicLod
Lo swoII bv around oighL miIIion poopIo
during Lho Lwo wooks of Lho main OIvmpics
in JuIv and AugusL 2u12. Tho BriLish aro
ronownod for ordorIv and rospocLabIo
quouing - buL roaIIv, who onjovs sLanding
in Iino? So Lho noxL 12 monLhs couId bo
an oxcoIIonL Limo Lo mako Lho mosL of an
oIoganL Lrip Lo London.
WiLh Lhis in mind Ihkm_hebh can
rocommond a fow soIocL opLions LhaL
offor induIgonco, guaranLood high quaIiLv
and convonionco.
Bogin vour sLav whoro hoLoI grandour
iLsoIf bogan in Lho ciLv. Tho Langham is
ronownod for boing Europo`s vorv firsL
'Grand HoLoI` and is ono of Lho IargosL
and mosL popuIar LradiLionaI hoLoIs in
Lho capiLaI. Tho Langham was buiIL 186
on RogonL SLrooL - jusL minuLos awav
from Lho WosL End - ono of Lho bosL
shopping and onLorLainmonL oncIavos in
Europo. PoIiLicaI groaLs such as NapoIoon
III, WinsLon ChurchiII and CharIos do
GauIIo Lhrough Lo rovaILv and IiLorarv
masLors such as Mark Twain, Oscar WiIdo
and ArLhur Conan DovIo havo caIIod
Lho Langham homo. Tho fIagship hoLoI
of Langham HoLoIs InLornaLionaI and
a mombor of Lho Loading HoLoIs of Lho
WorId group, Lhis sLunning fivo sLar havon
is porfocL Lo immorso voursoIf in London
Iuxurv. Tho onLiro buiIding, boLh insido
and ouL, radiaLos rofinomonL and oIoganco
and iL`s oasv Lo approciaLo Lho 8u miIIion
rofurbishmonL compIoLod in 2uu0. AL
Lho conLro of Lho hoLoI is Lho PaIm CourL
- famod for boing Lho birLhpIaco of Lho
afLornoon Loa LradiLion ovor 14 voars ago.
TradiLion Iivos on and Lho PaIm CourL sLiII
wins 'Oscars` in Lho Loa worId and draws a
fIood of discorning cusLomors.
Tho Landau,
a shorL waIk
awav Lhrough Lho
vauILod corridors,
is an improssivo
rosLauranL.
Tho monu is
prodominanLIv
Europoan cuisino,
wiLh a disLincL
approciaLion for
soasonaI cooking,
and Lho ambionco is cIassv buL informaI.
And don`L miss broakfasL - a fuII EngIish
aL Lho Landau wiII soL vou up for an onLiro
dav, como whaL mav.
?HK?:K Loo Iong Lho BriLish IsIos havo
boon wrongfuIIv discounLod whon iL comos
Lo sorving up worId-cIass cuisino. Tho food
scono in London is Lhriving and anv ono of
Lho foIIowing rosLauranLs wiII impross.
IirsL hoad Lo Lho hoarL of ChoIsoa and
sook ouL Tom`s KiLchon noar King`s Road.
Chof Tom Aikon has boon coIobraLod for
his commiLmonL Lo susLainabIo food and
soasonaI cooking. Tom`s KiLchon brassorio
is sLvIishIv opon-pIan and has an oasv
aLmosphoro LhaL sorvos Lho bosL of BriLish.
Wo`ro LaIking abouL a famous fuII EngIish
frv up, cIassic fish and chips, as woII as
signaLuro dishos such as his sovon-hour
braisod shouIdor of Iamb.
The Langham, built in 1865,
was the first of Europes
Grand Hotels.
Renowned for being the
birthplace of the afternoon tea
tradition, The Palm Court still
opens its doors to the cream
of London society.
July 2011
Essentials
Travel
Babbo, a new Italian restaurant in Mayfair, has won several awards in the restaurant
industry and garnered much word of mouth praise.
63
You can waIk off somo of Lho induIgonco
aL Lho noarbv SoIfridgos, ono of Lho worId`s
bosL doparLmonL sLoros. Tho now shoo
doparLmonL aIono is worLh Lho Lrip. If vou
nood a quick snack Lho woII-appoinLod bar
and rosLauranL, Aubaino, is IocaLod in Lho
midsL of Lho Lhousands of shoos.
AfLor shopping vou can pIan for an
ovoning of Lho finosL Asian cuisino in
Mavfair wiLh Lho MichoIin-sLar opLions
of Nobu and Hakkasan - boLh wiLhin
cIoso proximiLv. Nobu London was Lho
firsL oponing in Europo for Lho ownors,
coIobraLod Japanoso chof Nobu MaLsuhisa
and acLor RoborL Do Niro. EnLoring from
OId Park Lano, Lho ground fIoor foaLuros a
sLunning, fuLurisLic bar wiLh a fascinaLing
Lroo scuIpLuro and Lho firsL fIoor dining
room has sLunning viows across Hvdo
Park. Tho innovaLivo 'now sLvIo` Japanoso
cuisino is ouLsLanding and wo can hoarLiIv
Aubaine is a stylish
French bistro located
within the new shoe
department at Selfridges
on Oxford Street.
Portfolio
64
rocommond Lho boof LondorIoin LaLaki
onion ponzu and garIic chips foIIowod bv
Lho sashimi saIad wiLh MaLsuhisa drossing.
If vou aro in Lho mood for Chinoso
cuisino, Lhon Lho socond UK branch of
Hakkasan - in a primo IocaLion jusL off
BorkoIov Squaro - is Lho righL choico. Tho
monu is fiIIod wiLh LanLaIising croaLions
such as Lho 'Monk jumps ovor Lho waII`
- doubIo-boiIod soup wiLh abaIono, fish
maw, driod scaIIop, soa cucumbor and
driod shiiLako. And Lho dim sum pIaLLor
is a musL. Spoaking of which, if vou Iovo
dim sum vou nood Lo havo Iunch aL RovaI
China on Bakor SLrooL. Tho arrav of dim
sum horo is so oxLonsivo and auLhonLic
LhaL iL`s Lho pIaco whoro vou wiII find aII
Lho Chinoso chofs oaLing on Lhoir dav off.
SLaving in Lho Mavfair aroa buL changing
cuIinarv goographv; a roIaLivoIv now ILaIian
rosLauranL caIIod Babbo has croaLod a roaI
word of mouLh buzz. AfLor ono visiL iL is
oasv Lo undorsLand whv. Ovor Lho courso of
a Iong Iunch wo woro LroaLod Lo somo of Lho
bosL ILaIian cuisino wo`d ovor oxporioncod.
Babbo`s is ono of Lhoso fIawIoss socroLs vou
Iiko Lo koop Lo voursoIf, buL Lho socroL can`L
IasL. NoL givon Lho warmLh of Lho ILaIian
sorvico and how ovo-roIIingIv doIicious
Lhoir monu is. Tho burraLa chooso sLarLor
dofios adoquaLo doscripLion - iL jusL has Lo
bo oxporioncod.
Noarbv aro Lho shops of Bond SLrooL and
Oxford SLrooL LhaL wiII oasiIv parL vou from
vour monov. AIso worLh a doLour aro Lho
aIIuring bouLiquos and Lho IovoIv ciLv chic
aLmosphoro of MarvIobono ViIIago. Onco Lho
appoLiLo roLurns a visiL Lo 1u8 MarvIobono
Lano Bar and RosLauranL is anoLhor musL.
This busv and friondIv brassorio pridos iLsoIf
on using award-winning IocaI arLisanaI
spociaIisLs, roinforcing communaI spiriL
and aIIowing cusLomors Lo sampIo Lho bosL
IocaIIv sourcod soasonaI produco.
?HK:G aILornaLivo hoLoI, Lhis disLricL
has Lho LancasLor London HoLoI noarbv.
This four sLar proporLv is a brisk waIk
from Oxford SLrooL and MarbIo Arch and
onIv 2u minuLos from HoaLhrow airporL.
Oxford Street is one of the worlds most
famous shopping streets.
The Bar at 108 Marylebone Bar and Restaurant is a favoured venue in the district and a
perfect contemporary setting for lunch or dinner.
Following on from the huge success of
the original Hakkasan in Hanway Place,
the restaurant in Mayfair continues to set
the standard for modern Chinese cuisine
in London.
The Lancaster London offers superb suites and some of the best views in the city. It is
just a few minutes walk from Oxford Street.
July 2011
65
Essentials
Travel
IL has aII Lho amoniLios anv visiLor wouId
oxpocL, pIus ono parLicuIar Lhing for which
Lho LancasLor London is unrivaIIod - Lho
viow. Irom Lho majoriLv of iLs 416 rooms
Lho LancasLor has sLaggoring viows ovor
Lho 6uu acros of KonsingLon Gardons
and Hvdo Park. Tho hoLoI aIso has moro
oxcoIIonL pIacos Lo induIgo in fino food,
wiLh Lho IsIand rosLauranL sorving modorn
Europoan dishos and Nipa sorving somo
of London`s finosL Thai cuisino.
WhiIo Lho hoLoIs monLionod so far aro
wondorfuI opLions for a London sLav, manv
visiLors approciaLo Lho croaLuro comforLs
and homoIinoss of ronLing an aparLmonL.
Ior visiLs of a wook, or for monLhs aL a
Limo, iL makos groaL sonso. Tho ChovaI
Group has a porLfoIio of boauLifuI Iuxurv
sorvicod aparLmonLs Lo suiL ovorv LasLo -
whoLhor iL bo an uILra modorn dupIox wiLh
aII Lho mod cons, or a Iavish, LradiLionaIIv
docoraLod EngIish aparLmonL ovorIooking
KonsingLon Gardons. AII Lho proporLios aro
immacuIaLoIv mainLainod wiLh 24-hour
socuriLv and sorvico sLaff.
B?RHNKcriLoria incIudo somo pamporing,
Lho K WosL HoLoI & Spa in Richmond
wouId bo Lho bosL rocommondaLion. This
sIick, coIobriLv favourod hoLoI roconLIv won
Lho 'BosL UK Luxurv HoLoI Spa` award aL
Lho WorId Luxurv Spa Awards 2u11. Or if
iL is a biL of oId EngIish hisLorv vou wouId
Iiko Lo immorso voursoIf in, Lhon vou couId
sLav in Lho vorv room LhaL Oscar WiIdo
was arrosLod in aL Lho Cadogan HoLoI, and
dino in LangLrv`s rosLauranL. LiIIio LangLrv
was Lho famous acLross and 10Lh conLurv
London sociaIiLo who was infamous for
hor roIaLionship wiLh Lho fuLuro king of
EngIand, Edward VII.
Whorovor vou docido Lo sLav, London
has somoLhing for ovorvono and vou can
LaiIor vour sLav Lo porfocLion. JusL bowaro
of Lho rush.
Cheval Residences Thorney Court offers
two and three-bedroom apartments with
stunning views over Kensington Gardens
and decorated in the traditional English
elegant style.
The award winning K West Hotel & Spa in West Kensington offers an array of first rate
treatments.
Portfolio
I
GMA>>FBEB:KHF:@G:
rogion of conLraI ILaIv Lhoro`s a ciLv
of arL known as Iaonza whoso vorv
namo onLorod dicLionarios around Lho
worId as faionco, Lo donoLo arLfuIIv
crafLod coramics such as majoIica.
UnsurprisingIv Lho ciLv haII of Iaonza
IisLs ovor ,u officiaIIv rocognisod coramic
conLros, which aro busv producing Lop
quaIiLv docoraLod majoIica. WhaL oxacLIv
disLinguishos Iaonza majoIica? ThirLv-
somoLhing arLisL-scuIpLor-arLisan Jacopo
ViLaIi oxpIains, In Iaonza wo`ro sLiII
painLing arL onLo vasos, pIaLos and LiIos
bv hand, in Lho LradiLionaI wav. I doubL
Lhoro wiII ovor bo indusLriaIIv producod
coramics horo as iL`s noL whaL wo`ro
inLorosLod in and iL`s noL whaL our cIionLs
wanL. ThaL`s ono roason whv wo havo IiLLIo
compoLiLion from China for oxampIo.`
How is a Iaonza coramic arLwork
born? CIav, Lho raw maLoriaI,
abounds IocaIIv. IL is mixod wiLh
waLor and is Lhon mouIdod
inLo Lho dosirod form on Lho
poLLorv whooI,` savs ViLaIi.
NoxL iL is puL in an ovon aL
08uC, and Lhon iL is cooIod
bv immorsion in an
omuIsion conLaining
Lin, which producos
Lho cIassic whiLo
surfaco. Whon drv, Lho
dosirod docoraLions
Essentials
Art
66
July 2011
67 67
The Italian city of Faenza is famous for its ceramics, which are still
handmade the traditional way by artisans, reports Martin Gani.
aro painLod onLo iL. Tho coramic is Lhon
roLurnod Lo Lho ovon, Lhis Limo aL 02uC.
Onco iL has cooIod down, vou havo Lho
gIazod majoIica arLwork.`
ArLisLic, handmado coramic producLion
is a IifoIino for Iaonza as iL gonoraLos on
avorago t,uuu worLh of businoss por
arLisan annuaIIv. Iaonza is noL, howovor,
Lho onIv pIaco producing coramics Lho
LradiLionaI wav as Lhoro aro somo 2,,uu
firms sproad across 3u Lowns in ILaIv
doing Lho samo - buL Lhov`ro aII smaII
famiIv-run concorns ompIoving on avorago
3. poopIo. In Lho EmiIia Romagna rogion
Lhov`ro a IiLLIo biggor as oach conLro
has Lwico as manv arLisans. Tho
smaII sizo aIso moans oach firm
has a roIaLivoIv modosL
Lurnovor, around
t22u,uuu a voar,
buL muILipIiod bv
2,,uu iL adds up Lo
a handsomo sum.
Thoro`s aIso pIonLv of
varioLv as oach Lown
draws on Lhoir IocaI
LradiLions, Lhomos and
moLifs. WhaL`s mado in
Iaonza wiII bo difforonL
Ceramics With Flair
from poLLorv coming ouL of IIoronco,
NapIos, Lho Ligurian Lown of AIbissoIa,
Lodi in Lombardv, DoruLa in Umbria or
SiciIv for insLanco.
MajoIica roachod ILaIv in ModiovaI
Limos. As Lho namo impIios Lho Spanish
isIand of Majorca was invoIvod
buL onIv as a porL whoro ships
from Spain carrving coramics
mado bv MusIim Moors sLoppod
ovor. In 111 Tuscans conquorod
Majorca and Look Lho Moorish
majoIica Lo ILaIv and Lho
homos of arisLocraLs. Tho
oarIiosL majoIica mado bv ILaIian masLors
daLos back Lo Lho oarIv 14Lh conLurv
and woro imiLaLions of Moorish sLvIos.
Iaonza`s arLisans woro among Lho firsL Lo
Among the earliest Faenza
majolica motifs are delicate
vine leaves that leave a lot of
white space.
68
Essentials
Art
masLor Lho majoIica Lochniquo sLarLing
wiLh Lho basic raw maLoriaI, as woII as
oxporimonLing wiLh gIazing moLhods.
During Lho Ronaissanco Lho Lown
roachod iLs goIdon ago and Lho rango
of coIours was oxLondod. In Lho 16Lh
conLurv Iaonza bocamo associaLod wiLh
doIicaLo fIoraI dosigns, Iandscapos and
human figuros masLorfuIIv dopicLod on
a puro whiLo background. Tho woaILhv
around Europo, incIuding Spain, soughL
afLor Iaonza majoIica and faionco mado
iL inLo Lho dicLionarios. In Lho 18uus
Chinoso coramics arrivod in Europo,
rosuILing in ILaIian and oLhor Europoan
coramic makors imiLaLing Lho famous bIuo
docoraLions IocaIIv.
Towards Lho ond of Lho 10Lh conLurv,
afLor 6uu voars of succoss, Lho arL of
Iaonzo majoIica bogan docIining and
manv workshops cIosod down. Coramic
makor GaoLano BaIIardini sLoppod in,
uniLod Lho arLisans Lo coIIocLivoIv rosisL
Lho coramic crisis, and in 10u8 ho oponod
a musoum proudIv dispIaving Lho bosL of
Iaonzo from Lho MiddIo Agos onwards.
Tho musoum caLaIvsod Lho robirLh of
Lhis conLurios-oId LradiLion. Sinco Lhon
Lho oxhibiLs havo grown Lo incIudo a
vasL rango of documonLs, coramics and
majoIica from around Lho worId incIuding
pro-CoIumbian waros, cIassicaI Grook
and Roman, as woII as MiddIo and
Iar-EasLorn sampIos oxhibiLod
aIongsido ILaIian masLorpiocos
sLarLing in Lho Ronaissanco.
A socLion Lodav aIso dispIavs
conLomporarv coramics.
Tomporarv oxhibiLions aro
aIso hoId of famous arLisLs
Iiko Picasso, MaLisso, ChagaII,
Joan Miro, AIborLo Burri
and IonLana who painLod
on majoIica.
ViLaIi is koon Lo poinL ouL Lho haIImarks
of Iaonza majoIica moLifs Lhrough Lho
agos. EarIiosL moLifs aro known as Lho
RaphaoI sLvIo wiLh nudos, angoIs, sorono
The wealthy around
Europe, including
Spain, sought after
Faenza majolica and
faience made it into
the dictionaries.
The museum in Faenze displays ceramics from the Middle Ages onwards. These bowls
are done in the Raphael style.
Faenza majolica is still handmade and all
the motifs are carefully applied by artists
such as Jacopo Vitali.
Not all Faenza motifs are
traditional. The artwork keeps
evolving as exhibited by these
contemporary objects.
Portfolio
July 2011
69 69
porLraiLs, vino Ioavos, fIowors and Iandscapos. JusL
as oId aro Lho so-caIIod 'compondiario` - IiLoraIIv a
simpIo sLvIo wiLh a conLraI human or angoI figuro
circIod bv a fIoraI chain wiLh a IoL of ompLv whiLo
spaco romaining. Tho paIm, poacock foaLhors and
animaI moLifs aro aIso
common, Lhov Loo daLo back
Lo Lho 16Lh conLurv. Towards
Lho ond of Lho 10Lh conLurv
Lho sLvIisod carnaLion moLifs
woro invonLod in Iaonza and
moro doIicaLo docoraLions wiLh a Iargo
whiLo background bocamo fashionabIo.
Tho oarIv 2uLh conLurv saw Lho arrivaI
of pomogranaLo-goId combinaLions LhaL
inLricaLoIv docoraLod Lho majoIica waros
wiLh dark fIoraI moLifs Ioaving IiLLIo
whiLo spaco. Tho pomogranaLo moLif was
popuIar as iL is a svmboI of prosporiLv and
abundanco. AppIving goId roquiros a Lhird
cooking aL Iowor LomporaLuros, boLwoon
,uu - 82uC.`
Iaonzo majoIica has a wido prico rango.
A mug wiLh Ioafv docoraLions roLaiIs for
around t4, iLs t1uu for a 'compondiario-
sLvIo` bowI 3u conLimoLros across, t13u
for a 3u-conLimoLro-LaII vaso boaring
pomogranaLo-goId moLifs, and abouL
t1,uuu for a 22-pioco dinnor soL wiLh
carnaLion moLifs.
Vorv IiLLIo modorn LochnoIogv goos
inLo making Iaonza majoIica. Wo now
uso oIocLric powor Lo Lurn Lho whooI,` savs
ViLaIi buL aII Lho rosL is sLiII handmado.
Tho docoraLions aro aIso LradiLionaI moLifs.
Howovor, if a cIionL is inLorosLod in somoLhing
spociaI, Lhon aL Lho pIanning sLago compuLors
mav bo usod Lo soIocL Lho shapos, moLifs and
prosonL Lho finaI producL. LaLoIv somo of
us havo bogun prinLing companv Iogos or
anv oLhor porsonaIisaLion roquirod onLo Lho
majoIica using compuLor LochnoIogv, buL aII
Lho docoraLion is sLiII dono Lho hard wav,
bv hand.`
Faenze majolica
has a wide price
range. A mug
with leafy
decorations retails
for around 45.
This vase and bowl are
decorated in the pomegranate-
gold combinations that
became popular in the early
20th century.
Faenze, despite being a small town,
has managed to keep thriving thanks
to its century-old ceramics industry.
Portfolio
70
Essentials
Technology
SONGKICK SITE
TARGETS MUSIC FANS
Live music is one of the few segments of the music
industry that is experiencing continued growth. Songkick
is exploiting a gap in this market by creating a personalised
experience for concert fans, reports Ben Sisario.
G
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IM
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July 2011
71 71
Songkick, which started in 2007, allows music fans to keep track of when and where their
favourite bands are playing. Users also get email alerts and can post concert reviews.
porsonaIisod svsLom can simpIifv Lho hunL
and Lurn up nows Lhov mighL havo missod.
IL doos Lho hoavv IifLing for mo,` said Joo
Zadoh, a 20-voar-oId Loch workor in San
Irancisco who has boon using Lho sorvico
for a voar. If iL wasn`L for Songkick, I jusL
wouIdn`L go Lo as manv concorLs. Bocauso
iL`s jusL Loo much informaLion, Loo much
noiso Lo koop up wiLh.`
Songkick isn`L Lho onIv music IisLings
siLo. PoIIsLar, Lho concorL indusLrv Lrado
pubIicaLion, has an oxLonsivo onIino
daLabaso, and oLhor sorvicos Iiko JamBaso
and BandsinLown aIIow usors Lo Lrack Lhoir
favouriLo bands. BuL Songkick has omorgod


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F
BEF;N??LA:O>MA>
InLornoL Movio DaLabaso (IMDB).
Music vidoo aficionados havo
YouTubo and Vovo. BuL whaL`s Lho go-Lo
wobsiLo for Iivo music? Tho Louring
markoL is Lho fasLosL growing socLor of Lho
music indusLrv, voL whon iL comos Lo big-
LonL siLos LhaL roprosonL Lho oxporionco
as a whoIo - and do moro Lhan jusL
soII LickoLs - Lhoro aro fow conLondors.
Ono voung companv caIIod Songkick is
Lrving Lo chango LhaL bv fooding iLs usors
porsonaIisod nows abouL Iivo shows and
croaLing an oxLonsivo wob homo whoro
fans can sharo aII Lhoir concorL momorios.
Songkick`s main funcLion is simpIo
on an aImosL Wob 1.u IovoI. AfLor usors
sign up Lo Lrack Lhoir favouriLo bands,
Lho sorvico sonds froo omaiI noLificaLions
whon Lhoso acLs aro going Lo bo in Lown,
drawing from iLs daLabaso of moro Lhan
1uu,uuu concorL IisLings around Lho worId.
To fiII in anv gaps, iL can aIso scan a usor`s
pIavIisLs on iTunos, Pandora or oLhor digiLaI
music sorvicos, and rocommond roIovanL
ovonLs. Wo wanL Lo mako iL as oasv Lo go
Lo a concorL as iL is Lo go Lo Lho movios
on a Iridav nighL,` said Ian HogarLh, Lho
companv`s chiof oxocuLivo.
Songkick, which was foundod in 2uu,
and is basod in London, has aIso bogun Lo
mako noiso wiLhin Lho concorL indusLrv.
According Lo somo counLs, as manv as 4u
por conL of aII concorL LickoLs go unsoId.
Songkick`s moLhod of usor-sancLionod
LargoL markoLing hoIps soII moro LickoLs,
said Sarah McGoIdrick, markoLing
managor for C3 ProsonLs, an indopondonL
concorL promoLor in AusLin, Toxas, which
suppIios IisLings daLa Lo Songkick.
Thov havo Lho righL idoa,` McGoIdrick
said. Thov`vo goLLon poopIo ongagod wiLh
Lho wobsiLo, and LhaL moans LhaL whon
Lhov goL omaiI Lhov soo iL as roIovanL, and
noL as spam. And LhaL`s Lho mosL cruciaI
sLop in anv Iivo onLorLainmonL markoLing,
if vou`ro noL roIovanL Lhon vou`ro wasLing
vour broaLh.`
WiLh a sLring of doaIs Lo svndicaLo
iLs daLa around Lho inLornoL, Songkick
has aIso omorgod as porhaps Lho mosL
ambiLious IisLings siLo. Ovor Lho IasL voar,
iL has bogun working wiLh YouTubo,
Yahoo and Lho BBC, and iL roconLIv signod
a doaI wiLh Lho Warnor Music Group
Lo manago Lho wob dissominaLion of iLs
arLisLs` Lour daLos. A mobiIo app is coming
soon, and Lho companv aIso mado a
prominonL hiro: iLs now chiof LochnoIogv
officor is Dan Crow, a voLoran of AppIo,
GoogIo and sLarLups Iiko BIurb.
Ior fans accusLomod Lo Lho Iaborious
procoss of scouring for concorL IisLings on
bIogs, MvSpaco pagos, bands` wobsiLos,
nighLcIubs` siLos and omaiI, Songkick`s
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Essentials
Technology
Pollstar, a Songkick competitor, is a concert industry trade publication that also has a huge internet database.
husband-and-wifo duo from MonLroaI),
HogarLh, a chorubic 20, arguod LhaL bv
focusing on rogionaI markoLs and doing
IiLLIo Lo roLain cusLomors, Lho concorL
indusLrv has IofL opon a hugo opporLuniLv:
a big, ovorarching wobsiLo dodicaLod Lo
Lho oxporioncos of fans.
Using siLos Iiko Lho InLornoL Movio
DaLabaso as a modoI, Songkick has buiIL
an archivo of Lwo miIIion concorLs going
back Lo Lho 10us. Each concorL rocord
has an 'I was Lhoro` Lag for usors, who can
add posLors, phoLos and Iinks Lo roviows,
buiIding up a modia-rich gigographv.`
EvonLuaIIv, HogarLh said, Lho companv
couId soII momorabiIia or Iivo rocordings
Lhrough Lho archivo. (So far Lho siLo doos
noL havo advorLising.)
Thoro`s a nood for a consumor brand
LhaL roprosonLs Iivo music fans onIino,`
HogarLh said. NoL focusod on Lho vonuo
or Lho parLicuIar LickoLing svsLom, buL
focusod on Lho fan. And wo boIiovo LhaL
as Lho Ioador. According Lo comScoro,
Lho siLo`s monLhIv Lraffic has Iong sinco
surpassod aII iLs compoLiLors`, oxcopL for Lho
Lwo goriIIas of Lho markoL, TickoLmasLor
and Livo NaLion. (Tho Lwo companios,
which morgod IasL voar, mainLain soparaLo
wobsiLos and oporaLo as soparaLo divisions
wiLhin Livo NaLion EnLorLainmonL.)
<AKBLE:KHL:% music producL managor
aL YouTubo, said LhaL inLograLing concorL
informaLion had bocomo moro imporLanL
as siLos Iiko YouTubo bocomo ono of music
fans` firsL sLops in discovoring now music.
If vou Iook aL a Iivo concorL, iL`s roaIIv a
conLonL purchaso,` LaRosa said. PoopIo
como Lo YouTubo Lo proviow whaL concorL
Lhov wanL Lo go Lo.`
Songkick Lakos a cuL of purchasos mado
via iLs Iinks, buL Lho companv wanLs Lo
do moro Lhan soII concorL LickoLs. Ovor
friod chickon boforo a concorL in BrookIvn
ono nighL roconLIv (Handsomo Iurs, a
July 2011
73
Essentials
Technology
Bongiovanni, PoIIsLar`s odiLor, said his
companv had noL Lakon acLion, buL noLod
LhaL in 2uuu iL suod anoLhor sorvico,
Gigmania, for doing somoLhing simiIar,
and won a dofauIL judgmonL.
I havo no rospocL for anvono who Lrios
Lo buiId a businoss off oLhor poopIo`s hard
work,` Bongiovanni said. In rosponso,
HogarLh said LhaL Songkick no Iongor
usod PoIIsLar`s daLa.
AL Lho Handsomo Iurs concorL,
HogarLh kopL his backpack on, and mado
suro Lo sLav Lhrough Lho oncoro. To sLav
fan-focusod, HogarLh said, Lho companv
forbids iLs 2u ompIovoos from accopLing
froo LickoLs. InsLoad, oach ompIovoo goLs a
monLhIv gig aIIowanco of abouL $4u. As
soon as wo aro on Lho IisL, Lho guosL of Lho
promoLor, wo` II forgoL abouL Lho pain of
noL goLLing vour LickoL aL 0 am whon Lho
on-saIo sLarLs,` HogarLh said. Wo` II Ioso
sighL of whaL iL moans Lo bo a fan.`
can bo a hugo companv, simiIar Lo Lho
wav YoIp roprosonLs rosLauranLs onIino,
or NoLfIix roprosonLs movios onIino.` Ho
addod: If poopIo aro going Lo Lhink of ono
brand whon Lhov Lhink of Iivo music, wo`d
Iiko LhaL Lo bo us.`
;HKGBG London, HogarLh sLudiod
arLificiaI inLoIIigonco aL Cambridgo
UnivorsiLv and formod Songkick wiLh
Lwo frionds who, Iiko him, woro irriLaLod
bv how difficuIL iL can bo Lo find concorL
informaLion. LisLings aro scaLLorod across
Lho inLornoL, and LickoLing companios`
imporsonaI omaiI bIasLs didn`L hoIp
much. AfLor dovoIoping Lho basic idoa
for Songkick, HogarLh and his founding
parLnors, MichoIIo You and PoLo SmiLh,
had a quick riso: Lho companv rocoivod
sood monov and guidanco from Y
CombinaLor, an oIiLo Loch incubaLor in
BosLon. Among iLs invosLors aro Indox
VonLuros, whoso modia boLs havo incIudod
Skvpo and LasL.fm.
BuL Lho companv has aIroadv sLoppod
on somo indusLrv Loos. Songkick goLs
IisLings informaLion from promoLors and
LickoL sorvicos, buL aIso has iLs compuLors
LrawI for iL around Lho wob; IasL voar
PoIIsLar pIanLod somo dummv IisLings
and saw Lhom Lurn up on Songkick. Garv
Songkick gets listings information from promoters
and ticket services, but also has its computers trawl
for it around the web; last year Pollstar planted some
dummy listings and saw them turn up on Songkick.
Ian Hogarth, the CEO of
Songkick, started the site
with two friends who shared
his frustration at finding
concert information.
73
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74
Essentials
Cuisine
A Taste
of India
Ron Levy was an artist
when he was asked to build
his first tandoor, a type of
Indian oven. Since then he
has built hundreds more
and created a successful
business, reports Steven
Raichlen.
R
HGE>ORG>O>KBGM>G=>=
Lo bocomo a Landoor moguI.
In facL, ho had novor hoard of
Landoors - Indian cIav cooking vossoIs
LhaL aro parL ovon and parL barbocuo piL
- unLiI 1086, whon a Now York gaIIorv
oxhibiLod 1.8-moLro poLs ho had mado,
inspirod bv amphorao on CroLo. A man
wiLh an Indian acconL caIIod, wondoring
whoLhor Lovv, a coramic arLisL, couId
mako a Iargo poL wiLh a Laporod mouLh, no
boLLom and no gIazo: a Landoor.
AfLor iL was insLaIIod aL a Now York
rosLauranL caIIod Indian Ovon, word
sproad Lhrough Lho Indian communiLv,
and ordors bogan Lo piIo up.
IL camo Lo Lho poinL whoro I had Lo
sLop doing mv coramic arLwork and focus
on Landoors fuII Limo,` Lovv, 63, rocaIIod.
So ho convorLod his sLudio on MuIborrv
SLrooL in Now York`s LiLLIo ILaIv inLo
a Landoor facLorv. Ovor Lho pasL Lhroo
docados, ho has buiIL moro Lhan 2,uuu for
rosLauranLs across NorLh Amorica, incIuding
Lho Bombav CIub in WashingLon and
Bukhara GriII and DawaL in ManhaLLan,
and as far awav as Moxico, BoIizo and Iiji.

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Ron Levy improved on
the centuries-old tandoor
oven by using new
materials that made it
more durable.
July 2011
75 75
aro formod, oach
ono is Lurnod bv hand
on a gianL whooI Lo smooLh
Lho inLorior. Tho Landoors aro driod, Lhon
bakod aL 2,uuu dogroos in a gas-firod kiIn
for sovon hours, Lransforming Lho sofL cIav
inLo hard, hoaL-rosisLanL coramic. Tho
onLiro manufacLuring procoss Lakos
abouL Lwo wooks.
MA>M:G=HHK mav havo originaLod
in RajasLhan, India, whoro archaooIogisLs
havo found Landoor romains daLing from
26uu BC - abouL Lho samo Limo as Lho
pvramids. Tho firsL Landoors woro usod
Lo bako fIaLbroad, a LradiLion LhaL
survivos in Indian roLi, Afghan naan and
Turkmon chorok.
Coming from a fino arLs background,
iL was vorv saLisfving Lo mako somoLhing
so funcLionaI and so usofuI,` Lovv said. I
Lhink of iL as coramics LhaL foods Lho bodv,
in addiLion Lo sooLhing Lho souI.`
Now Lovv has dovoIopod a Landoor
for homo uso, Lho Homdoor. IL sLarLs aL
$1,2uu. Ono of Lhom, a waisL-high cIav
poL shoaLhod in sLainIoss sLooI and Iooking
vaguoIv Iiko a 'SLar Wars` roboL, siLs jusL
ouLsido Lho coramics sLudio on IsIamorada
in Lho IIorida Kovs, whoro ho now Iivos.
WiLh paIm Lroos and Lho azuro ocoan as a
backdrop, sparks and fIamos from gIowing
charcoaI shoL from iLs mouLh.
MichaoI LodwiLh, Lho chof of Hungrv
Horon CaLoring, Lhroadod spico-crusLod
rocLangIos of sLoak onLo Iong moLaI
skowors and paLLod voasLod dough inLo
Lho fIaLbroad naan. LodwiLh soasonod Lho
boof wiLh an aromaLic mixLuro of ground
poppor, musLard and fonnoI soods, and
grains of paradiso, driod bIack borrios in
Lho gingor famiIv LhaL LasLo Iiko a cross
boLwoon bIack poppor and aIIspico. Tho
boof camo ouL of Lho bIasL-furnaco hoaL of
Lho Landoor wiLh an oxpIosivoIv fIavourfuI
crusL and uncommonIv succuIonL conLro.
MA>MK:=BMBHG:E Landoor LhaL
Lovv soL ouL Lo copv 3u voars ago was
LvpicaIIv an unfirod vossoI, Lho cIav waIIs
sLrongLhonod wiLh sLraw and animaI hair.
IL was vorv unsaniLarv,` Lovv said,
adding LhaL ovons shippod Lo Lho UniLod
SLaLos ofLon arrivod from India brokon,
or wouId crack wiLh oxLondod uso.` Tho
Landoor`s shapo, a cvIindor wiLh sIopod
cIav waIIs, has romainod ossonLiaIIv
unchangod for ,uuu voars.
Lovv`s firsL innovaLion was Lo fashion
Lho bodv from a bIond of oarLhonwaro
and sLonowaro, Lho formor choson for iLs
modoIIing and oxpansion proporLios, Lho
IaLLor for iLs abiIiLv Lo wiLhsLand high hoaL
wiLhouL cracking. Ior porosiLv (an ossonLiaI
quaIiLv so LhaL fIaLbroads can cIing Lo Lho
ovon`s innor waIIs), ho addod finoIv ground
firod cIav, known as grog. Ior insuIaLion
and oxLra sLrongLh, ho dovoIopod a cIav and
vormicuIiLo mixLuro LhaL couId bo bakod
onLo Lho oxLorior of Lho poL. IinaIIv, ho
dovisod a sLurdv sLainIoss sLooI housing, so
Lho Landoor couId bo soId and insLaIIod as a
movabIo, froosLanding uniL.
Wo`vo boon using Ron`s Landoors for
Lho IasL 2u voars,` said Vickv Vij, an ownor
of Bukhara. Thov ouLIasL anv Indian cIav
Landoor. Thov`ro masLorpiocos.`
As domand and producLion pickod up,
Lovv boughL an onormous HobarL mixor,
which ho was LoId camo from an oId Navv
ship, Lo bIond Lho cIav. Ho buiIL pIasLor
mouIds Lo shapo Lho ovons. AfLor Lho poLs
Naan, a type of flatbread, is
cooked on the walls of the
tandoor. Meat is cooked on
skewers. The tandoors high
temperatures leave meat very succulent.
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76
hoaL risos from Lho charcoaI, a procoss
akin Lo griIIing. Tho hoL cIav waIIs of Lho
ovon cook broad, simiIar Lo baking or
pan-roasLing. RadianL hoaL in Lho boIIv
of Lho Landoor producos rosuILs simiIar
Lo convocLion baking. And smoko, which
occurs as Lho marinado and moaL juicos
drip onLo Lho hoL coaIs, adds fragranco
and fIavour.
Tho Landoor`s cooking proporLios
havo mado iL Lho proforrod barbocuo
piL LhroughouL ConLraI and SouLh Asia
and Lho Caucasus rogion. Iranians caII
iL Lanoor; Uzboks, Landvr; Azorbaijanis,
In spite of its ancient origins and utter simplicity, the tandoor produces
startlingly sophisticated results, including smokey flatbreads that puff like
pillows, and roasted meats of uncommon succulence.
Tandoor cooked naan with mushrooms is
one of the delicacies served by Bukhara
Grill in New York. Levy has made
tandoors for numerous top restaurants.
doIicacv monLionod bv Lho Indian surgoon
SushruLa as oarIv as Lho oighLh conLurv
BC. Shah Jahan, Lho MughaI omporor who
buiIL Lho Taj MahaI, hoId Lho Landoor in
such high osLoom ho had a porLabIo moLaI
modoI consLrucLod Lo Lako on his LravoIs.
In spiLo of iLs ancionL origins and uLLor
simpIiciLv, Lho Landoor producos sLarLIingIv
sophisLicaLod rosuILs, incIuding smokov
fIaLbroads LhaL puff Iiko piIIows, and
roasLod moaLs of uncommon succuIonco.
:<<HK=BG@MHLovv, Landoor cooking
usos four disLincL Lochniquos. DirocL
VisiL a bakorv on Lho Looming Chandni
Chowk in OId DoIhi - or anv Indian
rosLauranL, for LhaL maLLor - and vou
wiII soo frosh naan boing mado Lo ordor.
SofL whiLo baIIs of voasLod dough aro
roIIod inLo fIaL cakos, which aro drapod
ovor a round cIoLh piIIow caIIod a gadhi
and prossod onLo Lho hoL innor waIIs of
Lho Landoor, whoro Lhov puff, bIisLor and
brown in minuLos.
Tho soaring hoaL and smoko, and
moisLuro-roLaining proporLios of Lho
Landoor, mako iL oquaIIv offocLivo for
roasLing moaL on vorLicaI skowors, a
July 2011
77 77
Essentials
Cuisine
chaIIongo was producLion. Lovv mado his
commorciaI Landoors in smaII baLchos as
ordors arrivod. His businoss pIan for Lho
Homdoor, on Lho oLhor hand, caIIs for uu
uniLs Lo bo buiIL Lho firsL voar. LasL voar,
ho joinod forcos wiLh a coramics companv
in UhrichsviIIo, Ohio.
IL Lurns ouL, Lhov woro using Lho
samo pross mouIds and virLuaIIv Lho
samo coramic bIond for Lhoir firopIaco
compononLs and chimnov fIuo Iinors LhaL I
uso in mv Landoors,` Lovv said.
IoIIowing Lovv`s spocificaLions, Lho
companv has buiIL u Homdoors,
Lwoaking Lho shapo, propano burnor and
casing. AnoLhor hurdIo was bringing
Lho woighL of Lho uniL down from 10
kiIograms Lo 64 or Ioss, aL which poinL
iL couId bo shippod bv UPS. Tho firsL
commorciaI uniL roIIod ouL in March. Ho
was so pIoasod wiLh Lho rosuIL LhaL aII of
his Landoors aro now mado in Ohio.
Landir; Armonians, Lonir; and Goorgians,
Lono. BuL Lho conLro of Landoori cooking
is Punjab, in whaL Indians rofor Lo as Lho
NorLhwosL IronLior.
As a voung girI growing up in DoIhi,
Lho acLross and Indian cooking auLhoriLv
Madhur Jaffrov had novor hoard of a
Landoor. IL was noL unLiI 104,, whon
PakisLan gainod iLs indopondonco from
formorIv BriLish India, LhaL a wavo
of Punjabi rofugoos broughL Lho ovon
Lo DoIhi. Jaffrov discovorod Landoori
chickon, voung birds woighing aL mosL
1.13 kiIograms, robusLIv soasonod wiLh
saIL, vogurL and Iomon juico and dvod
orango wiLh food coIouring. IL was LoLaIIv
oxoLic - moaL cookod Lo ordor in jusL a fow
minuLos,` sho rocaIIod. Wo Indians woro
so usod Lo cooking moaL Lo doaLh.`
E>OR=>O>EHI>= his homo Landoor
- avaiIabIo aL homdoor.com - Lo bo smaII
and porLabIo onough Lo uso in a backvard,
voL big onough Lo cook for a Iargo famiIv.
AL Lho suggosLion of an Indian chof in
Miami, ho widonod Lho Homdoor`s mouLh
Lo accommodaLo up Lo six piocos of naan
aL a Limo.
Bocauso of iLs dosign - a vonL aL Lho
boLLom draws air, and Lho inward sIopo of
Lho mouLh Lraps Lho hoaL - a Landoor can
roach 26uC Lo ,uC wiLh a singIo Ioad of
charcoaI. Ior oaso of uso and LomporaLuro
conLroI, Lovv found an opLionaI 1uu,uuu
BTU propano burnor LhaL can hoaL a bod
of coramic briquoLLos aL Lho boLLom. (Ior
purisLs, Lho Homdoor aIso burns charcoaI.)
Ho aIso commissionod cusLom skowors
wiLh woodon handIos from a moLaI workor
in Orogon. Ho hirod a soamsLross in Los
AngoIos Lo sLiLch Lho gadhis. Tho finaI
Levy's latest invention is the homdoor, a tandoor that is light and portable enough to be
used in a backyard.
Levy developed his home tandoor to be small
and portable enough to use in a backyard, yet
big enough to cook for a large family.
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Essentials
Environment
THE COST
OF MALARIA
Malaria is Africas biggest killer and a huge burden on
economies. The Ugandan government used chemical
insecticides to tackle the scourge, but that also caused
problems, reports Josh Kron.
;HL<H:<HI>P:L:L>E?&F:=>
man. Growing up as a chiId in ALok aIong
Lho muggv, isoIaLod pIains of norLhorn
Uganda, Iifo was noL oasv. His paronLs
woro poor. Ho did noL aLLond socondarv
schooI. Manv of his frionds diod from
bouLs of maIaria, a scourgo LhaL has
pIaguod Lhis agrarian socioLv. Acopo, 40,
survivod. AL 10, ho bocamo a smaII-Limo
farmor, wiLh aImosL haIf a hocLaro of Iand.
Ho marriod. Ho sowod. I havo boon a
farmor aII mv Iifo,` ho said.
Whon Lho US govornmonL, a gonorous
and cIoso friond Lo Uganda, bogan an
organic-farming programmo Lo hoIp ruraI
oconomios, Acopo oxpandod, soIIing a wido
varioLv of commodiLios aL good raLos. His
aImosL haIf a hocLaro bocamo 2.8 hocLaros.
Acopo faLhorod 11 chiIdron. Uganda was
dovoIoping, and Acopo was ono of manv
who woro riding high, ho said.
BuL Lho vorv noxL voar camo winds
of chango. Iacod wiLh unroIonLing
maIaria, which LhroaLonod boLh Iivos and
IivoIihoods, Uganda`s govornmonL Loamod
wiLh Lho UniLod SLaLos Lo uso chomicaI
insocLicido spravs - incIuding DDT - Lo

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Lrv Lo oIiminaLo Lho disoaso. Acopo`s homo
disLricL, Apac, which has somo of Lho
highosL maIaria raLos in Lho worId, was
choson for spraving in oarIv 2uu8.
Acopo said an officiaI from Lho organic-
farming companv ho soId Lo, which was
aIso supporLod bv Lho UniLod SLaLos,
warnod LhaL Lho spravs woro dangorous.
Acopo`s produco wouId no Iongor bo
guaranLood Lo bo organic - ospociaIIv
sinco manv crops woro sLorod indoors,
whoro Lho spraving occurrod - nor wouId
iL bo boughL aL a IucraLivo prico. I was
LoId Lo proLocL mv markoL, Lo Lrv Lo sLop
Lho spraving,` Acopo said. BuL Lho whoIo
viIIago was spravod.`
Ono morning, ho rocaIIod, ho waLchod
a group of mon in gas masks who woro
carrving moLaI canisLors pass Lhrough
Lho viIIago, and jusL Iiko LhaL, Acopo`s
organic-food markoL was gono. Ho said
ho had Lo puII Lhroo of his chiIdron ouL of
schooI. IurLhormoro, Lho chomicaIs in Lho
insocLicido IasLod so Iong LhaL Lho organic-
farming companios said Lhov wouId noL bo
back for 1 voars. So Acopo is hoIping Lo
Lako his govornmonL Lo courL.
Onco condomnod as poisonous and
inhumano, DDT has sLagod a roconL
comoback. In 2uu6, Lho WorId HoaILh
OrganisaLion sLrongIv ondorsod Lho
chomicaI`s uso on indoor waIIs as a choap
and Iong-IasLing woapon in Lho fighL
againsL maIaria. Tho UniLod SLaLos aIso
sancLionod DDT Lo combaL Lho disoaso in
African counLrios wiLh 'a high burdon of
maIaria,` incIuding Uganda.
Tho UniLod SLaLos iLsoIf onco spravod
Bosco Acope, a farmer in the Ugandan
village of Atek, lost a large part of his
income after DDT was sprayed in his
home district.
July 2011
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Essentials
Environment
cIoar as woII. In Africa, maIaria kiIIs
2,uuu chiIdron oach dav, according
Lo UNICEI, and cosLs approximaLoIv
$12. biIIion in IosL incomos oach voar,
Lho MaIaria ConsorLium savs. IL roaIIv
affocLs Lho whoIo fabric of Lho oconomic
svsLom in Africa,` said Dr. PaLrick
LukuIav, a consuILanL Lo a US Agoncv for
InLornaLionaI DovoIopmonL iniLiaLivo Lo
LroaL maIaria. IL provonLs poopIo from
boing producLivo ciLizons.`
DDT wiLh aIacriLv in oIiminaLing Lho
IasL romnanLs of maIaria across NorLh
Amorica. Tho disoaso`s oradicaLion
was a miIosLono in pubIic hoaILh and
dovoIopmonL; iL aImosL LhwarLod
consLrucLion of Lho Panama CanaI and
infIuoncod Lo a groaL oxLonL human
popuIaLions and human hisLorv,`
Lho ConLors for Disoaso ConLroI and
ProvonLion savs. BuL Lho UniLod SLaLos
bannod Lho uso of DDT in 10,2 ovor Lho
chomicaI`s hazardous onvironmonLaI
impacL. SLudios havo aIso Iinkod DDT
Lo diaboLos and broasL cancor. Ono
oxaminaLion of Lho consoquoncos of using
DDT Lo fighL maIaria in sub-Saharan
Africa, conducLod bv Lho NaLionaI
InsLiLuLo of EnvironmonLaI HoaILh
Scioncos, said Lho chomicaI mighL havo
incroasod infanL doaLhs.
LMBEE%MA>risks of noL spraving aro
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Malaria kills 2,000 children in Africa each day and costs the
economy $12.5 billion annually.
organic farming in NorLhorn Uganda,`
said MichaoI Brandor of BioVision, a
Swiss organisaLion focusod on oco-friondIv
oconomic dovoIopmonL. Organic farming
providod a good prico aL Iow producLion
cosLs for farmors; howovor, iL was oxacLIv
in Lhoso aroas Lhov aIso supporLod
spraving of DDT.`
In Lho Apac rogion of Uganda, Lho
UniLod SLaLos focusod on Lwo confIicLing
agondas: dovoIoping organic farming and
oradicaLing maIaria, uILimaLoIv affocLing
Lho IivoIihoods of Lons of Lhousands
of farmors. USAID has supporLod
agricuILuraI dovoIopmonL in Uganda for
manv voars, incIuding Lho promoLion of
GHPN@:G=:L consLiLuLionaI courL
is oxpocLod Lo hoar a caso broughL bv a
Ugandan onvironmonLaI organisaLion
againsL Lho govornmonL LhaL assorLs LhaL
officiaIs faiIod Lo mooL WHO sLandards for
using DDT, incIuding faiIuro Lo proporIv
proparo Lho IocaI popuIaLion.
Givon Lho provaIonco of Lho disoaso,
chomicaI spraving wiLh sLricL moniLoring
and suporvision is ono of Lho mosL offocLivo
moasuros Lo conLroI maIaria in high-risk
aroas,` said a US Embassv officiaI.
Tho viIIago of ALok is a pIaco whoro
mangoos can bo oaLon dirocLIv from Lroos
and chiIdron waIk Lo schooI shooIoss.
Iarming is a wav of Iifo, and Lho US aid
agoncv`s organic-farming programmo
gavo Lho viIIago a compoLiLivo odgo. Whon
Lho DDT was spravod, organic-farming
companios sav Lhov IosL Lho buIk of Lhoir
suppIv immodiaLoIv. A US-ownod companv,
DunavanL, had u,uuu corLifiod organic
farmors in aroas affocLod bv Lho spraving,
according Lo Lho Uganda NoLwork on Toxic
Iroo MaIaria ConLroI, Lho organisaLion
Laking Lho govornmonL Lo courL. Sharos,
anoLhor farming companv, said aL IoasL
16,uuu of iLs suppIiors woro affocLod. AII
July 2011
81 81
Essentials
Environment
and a moLhor of six, Lho doaLh of hor
chickons during Lho firsL round of spraving
soL off aIarm boIIs. Wo foarod LhaL Lho
chiIdron couId Louch Lho waII,` whoro
sprav was adminisLorod, and Lhov couId
dio,` said ELimo, 32. UILimaLoIv, iL was
businoss LhaL sufforod Lho mosL, sho said,
wiLh hor rovonuo roducod bv moro Lhan
haIf. Tho probIom I oxporionco is Lho
probIom of monov,` sho said.
UndornoaLh a mango Lroo noarbv, Acopo
IamonLod his own rovorsaI of forLuno, buL
romainod sLoic. I am now working on mv
own,` ho said. SLiII growing.`
LhaL goL IosL,` said Jan-AIox Iokkons, Lho
dirocLor of Sharos. IL was gamo ovor.`
Tho organic-farming companios suod Lho
Ugandan govornmonL afLor Lho firsL rounds
of spraving, and a high courL issuod a
Lomporarv injuncLion on Lho uso of DDT in
2uu8, buL Lho caso was IaLor dismissod.
Tho US govornmonL savs iL has noL
roLurnod Lo using DDT in Uganda sinco
Lho courL ruIing, ovon Lhough Lho Ugandan
govornmonL has mado numorous roforoncos
Lo roinsLiLuLing Lho chomicaI. Now, Lho main
chomicaI boing usod in Lho insocLicido-
spraving programmo, bondiocarb, has aIso
boon disconLinuod in Lho UniLod SLaLos, and
iL is considorod Lo bo moro oxponsivo and
Ioss officionL Lhan DDT.
Numerous charities, supported by celebrities such as UK DJ Chris Moyles, concentrate on
supplying free mosquito nets. The nets are effective in lowering malaria infection rates.
The organic-farming
companies sued the
Ugandan government
after the first rounds
of spraying, and a high
court issued a temporary
injunction on the use of
DDT in 2008, but the case
was later dismissed.
AL a corLain poinL bondiocarb wiII faiI,`
said Richard Onon, a fioId coordinaLor for
AbL AssociaLos, a businoss conLracLod bv
USAID Lo carrv ouL iLs indoor spraving
programmo. I cannoL ruIo ouL Lho
possibiIiLv of using DDT. IL is choap.`
BuL Lhoro aro quosLions as Lo how woII
DDT workod in Uganda in Lho firsL pIaco.
MosquiLoos had bocomo rosisLanL Lo Lho
DDT,` said KaIo Dickinson, a nursing
officor aL a IocaI hoaILh conLro. DDT was
noL offocLivo.`
?HKEBEEB:GELimo, Acopo`s noighbour
Acope made a good living from organic farming, but he lost his certification after DDT
was sprayed. It will take 15 years for the DDT to wear off.
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E
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fhma^k^gkhea^k^';rma^mbf^p^_hng]mablgnklbg`ahf^%p^
p^k^]^li^kZm^'
Maio Yuqiang pushes
his mother, Qui Jinzhen,
who suffers from
dementia, at Shanghai
No. 3 Elderly Home in
Shanghai, China
A New Approach
to Elder Care
Within three decades there could be
400 million people over the age of 60 in
China, which means that diseases such
as Alzheimers and dementia will become
more common, reports David Barboza.
July 2011
83 83
China is worried about the 4-2-1 problem. In part because of the one child policy, a
single person will soon be expected to support two parents and four grandparents,
which has severe implications for health care.
WhiIo manv counLrios aro sLruggIing
Lo copo wiLh rapidIv aging popuIaLions,
in China Lhoro aro forocasLs LhaL wiLhin
Lhroo docados Lhoro couId bo noarIv 4uu
miIIion poopIo ovor Lho ago of 6u and,
parLIv bocauso of Lho ono-chiId poIicv, a
docIining numbor of working-ago poopIo
Lo caro for Lhom. Rocognising Lho difficuIL
road ahoad, China is boginning Lo oducaLo
Lho pubIic and Lho modicaI communiLv
abouL domonLia, and big ciLios aro making
pIans Lo buiId now faciIiLios, Iiko Lho
Shanghai No. 3 EIdorIv Homo.
Tho shifL in aLLiLudos is romarkabIo. A
docado ago, manv famiIios woro ashamod
Lo acknowIodgo LhaL Lhoir oIdors had such a
disoaso. And bocauso of a Iack of awaronoss
abouL Lho disoaso, manv domonLia paLionLs
woro confinod Lo Lho psvchiaLric wards of
hospiLaIs, which pIacod sLooI bars ovor Lho
windows. BuL Lodav, a growing numbor of
famiIios aro dosporaLo Lo pIaco roIaLivos in a
nursing homo. Tho probIom, hoaILh oxporLs
sav, is LhaL Lhoro simpIv aro noL onough.
HoaILh oxporLs aro prodicLing sovoro
sLrains on Lho sLaLo and on working
famiIios horo. And Lhoso sLrains couId bo
compoundod bv Lho Iack of awaronoss
abouL AIzhoimor`s disoaso and oLhor
forms of domonLia, ovon among modicaI
profossionaIs in China. This is an
imponding hoaILh crisis for China, and iL
mav ovon oxcood whaL`s happoning in Lho
US bocauso of Lho ono-chiId poIicv,` said
Rhoda Au, an associaLo profossor aL Lho
BosLon UnivorsiLv SchooI of Modicino.
In Shanghai, China`s woaILhiosL and
mosL dvnamic ciLv, an osLimaLod 12u,uuu
rosidonLs havo AIzhoimor`s disoaso or somo
form of domonLia. BuL ciLv officiaIs can
idonLifv onIv a handfuI of nursing homos
Lrainod Lo caro for domonLia paLionLs.
Worrios abouL Lho growing ranks
of Lho oIdorIv aro ampIifiod bv whaL is
boing dubbod Lho 4-2-1 probIom. In parL
bocauso of Lho ono-chiId poIicv, soon a
singIo porson in China wiII bo oxpocLod
Lo hoIp supporL Lwo paronLs and four
grandparonLs. And as Lho oIdorIv Iivo
Iongor, Lhov aro moro IikoIv Lo dovoIop


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domonLia, which roquiros oxponsivo caro.
To copo wiLh a sovoro shorLago of nursing
homos, Shanghai is proposing whaL iL
caIIs Lho 0u-,-3 pIan, which moans 0u por
conL of Lho oIdorIv wiII nood Lo bo carod
for aL homo, whiIo sovon por conL mako
occasionaI visiLs Lo a communiLv conLro and
Lhroo por conL Iivo in nursing homos.
Wo`ro pIanning Lo buiId aL IoasL ono
nursing homo LhaL can caro for domonLia
paLionLs in ovorv disLricL,` Zhang Ian,
dopuLv dirocLor of sociaI woIfaro aL Lho
Shanghai CiviI Affairs Buroau, said in a
LoIophono inLorviow. Evorv voar, wo` II
nood aL IoasL ,uuu addiLionaI bods.`
HG>H?Lho major chaIIongos wiII bo
figuring ouL who wiII pav for profossionaI
caro. In Lho 100us, China dismanLIod iLs
oId 'iron rico bowI` svsLom of cradIo-Lo-
gravo financiaI supporL from Lho sLaLo. IL
was parL of a movo Loward a moro markoL-
To cope with a severe shortage of nursing homes,
Shanghai is proposing what it calls the 90-7-3 plan,
which means 90 per cent of the elderly will need
to be cared for at home, while seven per cent make
occasional visits to a community centre and three per
cent live in nursing homes.
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Health
Thov roaIIv Lako caro of hor. Wo`ro working
poopIo. Wo boLh drivo a bus Iong hours.
WhaL wouId wo do wiLhouL Lhis pIaco?`
Dr. Zhang Naizi, prosidonL of Lho
Shanghai No. 3 EIdorIv Homo, savs Lho
conLro Lrios Lo caro for domonLia paLionLs
wiLh a svsLom of porsonaIisod aLLonLion
LhaL was firsL dovoIopod in Europo. Tho
svsLom incIudos kooping Lho paLionLs acLivo
wiLh momorv gamos and insisLing LhaL Lho
nursing sLaff consLanLIv mako hand conLacL
wiLh Lho paLionLs, bv simpIv rubbing Lhoir
arms or hands whiIo spoaking Lo Lhom,
hoping Lo mako Lhom fooI moro socuro.
Ho savs Lho now faciIiLv has a muILimodia
room LhaL can dispIav imagos of Shanghai
sLrooLs and ovon imagos LhaL appoar Lo show
Lho noighbourhoods of Lho paLionLs. This is
supposod Lo mako Lhom fooI aL homo. Manv
paLionLs aIso woar GPS armbands LhaL hoIp
Lho sLaff moniLor Lhoir IocaLions.
I am proud Lo sav wo`ro Lho firsL
profossionaI conLro for domonLia paLionLs,`
Zhang said. Wo aro Lho firsL in Lho whoIo
counLrv. Ton voars ago, domonLia paLionLs
woro sonL Lo psvchiaLric wards. Things aro
difforonL now.`
Miao, Lho Shanghai bus drivor, is among
Lhoso forLunaLo onough Lo havo found a
nursing homo LhaL can LroaL domonLia. His
famiIv`s ordoaI is common horo. Two voars
ago, his oIdorIv moLhor bogan showing
signs of momorv Ioss afLor sLriking hor
hoad on Lho pavomonL ouLsido hor homo.
Sho was hospiLaIisod for a monLh. Whon
sho roLurnod homo - whoro sho Iivod
wiLh hor voungosL son, Miao, his wifo and
Lhoir Lhon 2u-voar-oId son - sho bogan Lo
show signs of sovoro momorv Ioss. Sho
sLarLod goLLing IosL on Lho sLrooL,` said
Lho woman`s daughLor-in-Iaw, Luo Yuqin.
Sho`d ovon forgoL Lo Lurn off Lho boiIing
waLor on Lho sLovo.`
MH=:R%FB:HL moLhor is aL Lho
Shanghai No. 3 EIdorIv Homo and usos
a whooIchair. Sho has IosL hor abiIiLv Lo
spoak and is prono Lo omoLionaI fiLs, Miao
said. Ho visiLs hor Lwico a wook. A fow
SaLurdavs ago, ho camo wiLh snacks and a
pIasLic bag sLuffod wiLh hard-boiIod oggs.
Ma, is ovorvLhing okav?` ho said as ho fod
his moLhor from a smaII boLLIo of miIk.
Thon, Miao`s wifo jumpod in, saving:
orionLod oconomv. BuL iL now moans Lho
naLion`s sociaI safoLv noL is woak, and caro
for Lho oIdorIv is undorfundod.
BosLon UnivorsiLv is now conducLing a
sLudv Lo moasuro domonLia raLos in China
and Lo idonLifv Lho facLors LhaL Ioad Lo
highor risk of disoaso. Tho aim is Lo sIow
Lho onsoL of Lho disoaso and aIIoviaLo Lho
hoavv hoaILh caro cosLs.
Thoro is now prossuro for spoodior
acLion. AILhough Lho Chinoso havo a
LradiLion of caring for Lhoir oIdors aL
homo, famiIios in big ciLios compIain
abouL a Iack of opLions.
Lu Poivu has boon sLruggIing Lo find a
pIaco for hor 63-voar-oId husband, who
rocoivod a diagnosis of domonLia Lhroo
voars ago. A formor accounLanL, ho is
siLLing aL homo bocauso no ono can bo
found Lo LroaL him. Wo LhoughL abouL
sonding him Lo hospiLaIs, buL ho ran awav
Lwico in Lwo voars,` said Lho man`s son-in-
Iaw. Tho probIom is Lhoro`s so far noL a
singIo nursing homo LhaL offorod a suiLabIo
pIaco for mv faLhor-in-Iaw. ProfossionaI
hospiLaIs aro aII fiIIod up, and privaLo
nursing homos don`L havo quaIifiod poopIo.`
The Shanghai No. 3 Elderly Home in Shanghai is Chinas first care facility to
specialise in patients suffering from dementia and Alzheimers.
Portfolio
86
Essentials
Test Drive
MEAN LEXUS MACHINE
The Lexus IS F is a four-door sport sedan that was born at Japans Fuji speedway,
home to Lexus high-performance vehicle development. And perform it does,
reports Guido Duken.
I
G>O>KMAHN@AMB=NL>MA>
words 'fun`, 'oxciLing` and 'Loxus` in
Lho samo sonLonco. Luxurious, vos.
RoIiabIo, diLLo. SonsibIo, naLuraIIv. BuL
vou wouIdn`L havo caughL mo buving ono.
WoII, LhaL opinion has changod fasLor
Lhan Lho Loxus IS I doos u-1uukm]h (4.8
soconds, in caso vou`ro wondoring).
Tho IS I (Lho I sLands for Iuji
spoodwav) sLorv sLarLs wiLh a Japanoso
onginoor, Yukihiko Yaguchi, who has
workod aL TovoLa for Lhroo docados.
ApparonLIv Yaguchi had Lho high-
porformanco iLch Lo buiId a promium
sporL sodan LhaL wouId oquaI or boaL Lho
bosL of iLs cIass from Europo. In shorL, a
car ho wanLod Lo own. Whon his bossos
didn`L sharo his onLhusiasm ho gaLhorod
somo foIIow onginoors and sLarLod working
socroLIv on a car wiLh hugo horsopowor,
racoLrack-inspirod handIing and onormous
sLopping powor. EvonLuaIIv managomonL
saw Lhings his wav and Lho firsL Loxus IS I
appoarod in 2uu8 Lo Lho consLornaLion of
moLoring journaIisLs who didn`L quiLo know
whaL Lo mako of iL. Somo said iL wasn`L
rofinod onough, oLhors criLicisod Lho hard
racing susponsion, and a Lhird group foIL
iL was jusL Loo uncompromising Lo Lako on
Lho Gormans. Yaguchi and Loxus` answor
was Lo koop improving Lho IS I, which
brings us Lo Lho 2u11 modoI.
Appoaranco-wiso Lho IS I`s oxLorior
isn`L radicaIIv difforonL from Lho sLandard
Loxus IS sodan. YoL iL hinLs aL iLs high-
porformanco crodonLiaIs wiLh a Iowor
sLanco, quad-sLackod oxhausL pipos and
a subLIo roar spoiIor, widor whooI archos
foaLuring sido vonLs Lo houso Lho 10-inch
forgod aIIov whooIs, a doop fronL spoiIor
wiLh Iargor griIIo and inLakos, and Lho
buIging hood LhaL accommodaLos Lho
porformanco Lunod fivo-IiLro V8. Tho
IS I mav noL bo a moving work of arL
buL iL dofiniLoIv has korb appoaI.
Insido, Lho IS I aIso mainLains a
baIanco boLwoon sporL and cIass. Tho Lhick
muILifuncLion sLooring whooI is a pIoasuro
Lo hoId, insLrumonLaLion is cIoan and
inLuiLivo and Lho Lwo-Lono IoaLhor-Lrimmod
fronL sporLs and sLandard roar soaLs Iook
Lho parL. IurLhor sporLv Louchos aro a siIvor
carbon fibro offocL finish around Lho goar
shifL, aIuminium podaIs and a bIuo LED
IiL spoodomoLor. Thoro`s aIso no shorLago
of croaLuro comforLs wiLh a duaI-zono
auLomaLic cIimaLo conLroI, a 14-spoakor
July 2011
87
Yukihiko Yaguchi was so keen to create a premium sport sedan that he worked on it
covertly with fellow engineers. The end result was the first Lexus IS F in 2008.
modoI, Yaguchi focusod his aLLonLion
on Lho susponsion and ho`s managod Lo
roach an aImosL porfocL compromiso
boLwoon comforL and road hoIding. Hard
susponsion? I Lhink noL. Tho IS I quioLIv
soaks up bumps voL vou can Lhrow iL inLo
cornors aL spood. Tho sLooring is moaLv
and accuraLo, aILhough iL couId havo moro
foodback. Is Lho IS I sLiII uncompromising?
Yos, buL in a vorv good wav. Tho IS I is
unapoIogoLicaIIv Japanoso, and whoroas
LhaL can ofLon moan roIiabIo buL sIighLIv
duII, LhaL isn`L Lho caso horo.
CriLicisms? WoII, I`m 1.8 moLros LaII
and I didn`L havo much hoadroom. Thoro
aIso wasn`L much Iogroom in Lho roar
onco I`d adjusLod mv soaL. Tho oighL spood
auLomaLic Lransmission doos a good job of
kooping Lho oconomv down Lo a cIaimod
13 L]1uu Km in urban condiLions, buL
LhaL aIso oquaIs Lo a IoL of goar changos.
Doos Lho Loxus IS I doIivor on iLs
AED200,uuu ($81,4,1) prico Lag? Yos,
Mr Yaguchi, iL doos.
87
Mark Lovinson audio svsLom and an oasv-
Lo-uso muILi-informaLion dispIav.
BuL Lho roaI boauLv of Lho IS I is rovoaIod
as soon as vou push Lho 'SLarL]SLop buLLon`.
AccoIoraLo normaIIv and Lho IS I is moro
caL Lhan Ligor. BuL whon vou ram down Lho
accoIoraLor Lho ongino omiLs a wiId muscIo
car growI LhaL givos vou gooso bumps.
Add Lo LhaL hoarL-sLopping accoIoraLion as
41, horsopowor surgo Lhrough Lho oighL-
spood auLomaLic goarbox and Lho spociaIIv
dosignod MichoIins biLo inLo Lho Lar. AIas,
LhaL incrodibIo soundLrack is far Loo shorL as
in a bIink vou`ro aL 2uu pIus and hoading for
a rondozvous wiLh Lho IogaI svsLom. Timo Lo
hiL Lho suporb Brombo brakos.
Thoro`s somo Lhings vou can`L puL inLo
words, and Lho sound of Lho IS I`s V8 in
high-porformanco modo is ono of Lhom. If
I had mv wav, Lho IS I wouId sound Iiko
LhaL aII Lho Limo. UnforLunaLoIv, iL wouId
Lhon Ioso iLs promium sodan crodonLiaIs so
somo compromisos havo Lo bo mado. Sigh!
YoL Lho Loxus IS I doos manago Lo koop a
hoaILhv baIanco boLwoon promium sodan
and racing machino.
<:GRHNuso Lho Loxus IS I on a daiIv
basis? CorLainIv! Drivon normaIIv iL is
mosL dofiniLoIv a rofinod sodan wiLh
groaL sound insuIaLion. Ior Lho 2u11
The interior maintains a good balance between high performance and comfort. The front
sport seats are incredibly comfortable in true Lexus style.
The IS Fs stacked exhausts may not be to
everybodys liking, but they do convey a
subtle sense of menace and power.
Por tfolio
88
Essentials
Other Business
A poIico officor in Indopondonco, a Kansas CiLv suburb,
oncounLorod a vorv Lough ropLiIo whon ho rospondod Lo a caII
abouL a Iargo aIIigaLor Iurking on Lho ombankmonL of a pond.
Tho officor caIIod a sLaLo consorvaLion agonL, who advisod him Lo
shooL Lho aIIigaLor bocauso Lhoro was IiLLIo LhaL consorvaLion officiaIs
couId do aL LhaL Limo. As insLrucLod Lho officor shoL Lho aIIigaLor, noL
onco buL Lwico, buL boLh Limos Lho buIIoLs bouncod off.
Tho roason whv? Tho aIIigaLor was mado of comonL. Tho
bomusod proporLv ownor LoId poIico IaLor LhaL ho pIacod Lho
ornamonLaI gaLor bv Lho pond Lo koop chiIdron awav, buL Lho
pubIic had IiLLIo Lo foar. A spokosman for Lho Missouri DoparLmonL
of ConsorvaLion addod LhaL aIIigaLors woron`L found in Missouri as
iL was Loo far norLh, which moanL iL was Loo coId for Lho ropLiIos.
Italy recently foiled an attempt by North Korea to import tap-
dancing shoes in breach of a United Nations ban on the sale of
luxury goods to Pyongyang. In December 2010, a shipment of
high-quality tap-dancing shoes was blocked at Orio al Serio
Airport (Milan), said the report by the UN Panel of Experts, which
monitors compliance with UN sanctions against North Korea.
The UN imposed two rounds of sanctions on Pyongyang for
its 2006 and 2009 nuclear tests, which ban the sale of luxury
items to Kim Jong-ils government. Pyongyang was also hit with
an arms embargo and is forbidden from trading in nuclear and
missile technology.
Italy has seized other banned luxury items the leaders of
impoverished North Korea unsuccessfully attempted to purchase
in recent years, including high-quality cognac and whiskey worth
12,000 ($17,250) and equipment for a 1,000-person cinema.
A UN diplomat said it was not yet clear how the tap shoes
might fit into North Korean leader Kim Jong-ils lavish lifestyle.
No Tap Shoes for North Korea
One Tough Alligator
Affordable
Rocket for One
If vou`vo ovor droamL of bIasLing off in a rockoL, vou`ro in
Iuck. Tho HoaL-1X is a rockoL buiIL bv a Danish nonprofiL
caIIod Coponhagon SuborbiLaIs. IL`s a rockoL buiIL for ono.
According Lo Ma^G^pL\b^gmblm iL wiII cosL abouL
$60,uuu Lo buiId, which is Ioss Lhan ono of Lho Iargor
BMWs. Tho oconomics of Lhis projocL mighL sound a LrifIo
idoaIisLic. Indood, IasL voar, a Iaunch wonL somowhaL awrv
whon a hairdrvor maIfuncLionod, which was boing usod Lo
provido hoaL insido Lho rockoL.
Howovor, Lhoro is ompiricaI ovidonco
LhaL Lho HoaL-1X can roaIIv fIv. In a roconL
LosL Lho rockoL mado iL Lwo kiIomoLros inLo
Lho skv, somowhaL Ioss Lhan Lho 14 LhaL
woro hopod for. Howovor, KrisLian von
BongLson of Coponhagon SuborbiLaIs
oxpIainod LhaL ho usod his romoLo conLroI
Lo shuL down Lho rockoL, as iL bogan Lo
show signs of vooring awav from Lho
dosignaLod LosL aroa.
UnIiko Lho NASA rockoL moduIos
whoro Lho asLronauLs Iio on Lhoir backs,
in Lho HoaL-1X budding asLronauLs wiII
bo sLanding up aII Lho wav.
WiLh Lho worId`s oconomios
wafLing inLo furLhor sLorms, Lhis
givos hopo Lo aII morLaIs who aro
sLiII droaming of spaco.
G
E
T
T
Y

IM
A
G
E
S
107 RUE DE RI VOLI
PARI S 1
E R
MASTERPI ECES
FROM THE
RALPH L AUREN
COLLECTI ON
28 APRIL
28 AUGUST 20I I
LES ARTS
DECORATIFS
To learn more, call +33 (0) 1 44 55 57 50
or visit lesartsdecoratifs.fr
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