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Issue 69

September 2011
Portfolio
emirates.com
Exclusive to Emirates First Class and Business Class
Building a Media Brand
Wadah Khanfar
ARCTIC OIL RUSH
Exploring the North
BLACK SWAN FUNDS
Insuring Your Portfolio
THE DIGITAL RIVER
Saving Chinas Water
!Cover September2011.indd 1 8/29/11 10:27:27 AM
INTRODUCING RALPH LAURENS FIRST EUROPEAN RESTAURANT
AT HIS NEW LUXURY STORE ON THE LEFT BANK
173, boulevard Saint Germain, Paris
Reservations: 33.1.44.77.76.00
PORTFOLIO_412x270 Ralph's Rest.indd 1 11/05/11 15:12
INTRODUCING RALPH LAURENS FIRST EUROPEAN RESTAURANT
AT HIS NEW LUXURY STORE ON THE LEFT BANK
173, boulevard Saint Germain, Paris
Reservations: 33.1.44.77.76.00
PORTFOLIO_412x270 Ralph's Rest.indd 1 11/05/11 15:12
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HarryWinston_Portfolio_MidnightAuto_July.indd 1 5/27/11 2:37:04 PM
Portfolio
Exclusive to Emirates First Class and Business Class 11
Features
38 The Fading Dream
Homeownership is entrenched in British culture, but larger
deposits and tighter credit mean that many young people
are forced to live as generation rent.
42 American Icon
Harley-Davidson motorcycles are an extension of the
American dream that resonates globally. Mark-Hans Richer,
the Senior Vice President and Chief Marketing Officer of the
Harley-Davidson Motor Company, outlines the road ahead.
46 The Reign of Plastic
The American Treasury seems to be printing less dollars
every year. Does that mean the end of cash is nigh?
50 Arctic Oil Rush
Oil companies and governments are looking north to the
Arctic as prices rise and energy security fears grow. But
the harsh conditions make drilling difficult, and
environmental groups are warning of a potential disaster.
54 Preparing for End Times
Investors have seen two market crashes in the past decade
and theyre now looking for protection. Thats what black
swan funds and tail risk funds offer.
Cover Story
This issue
September 2011
C
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58 Outsourcing Firms Create US Jobs
The US legal profession has gone through hard times
thanks to the economic climate and the move to offshore
outsourcing. But now outsourcing jobs are returning to
American shores.
32 Game Changer
Wadah Khanfar, lhe direclor generaI of AI
Jazeera, has grown lhe comany from a singIe
channeI lo a media nelwork wilh muIliIe
roerlies incIuding lhe AI Jazeera Arabic
channeI and AI Jazeera EngIish. He`s aIso
managed lo inlegrale sociaI media in a way lhal
few olher channeIs have, oening lhe door for
lhe accIaimed reorling on lhe Arab Sring.
50
46
11-12 Contents.indd 11 8/21/11 1:45:13 PM

15 Notebook
World business in a nutshell.
21 Observer
Spotting and analysing business trends.
28 Column: Patrick Collinson
Dont bank on smartphones.
Portfolio
Exclusive to Emirates First Class and Business Class
12
Departments
Essentials
61 Call of the Sea
The Danes have always been seafaring people, as is evident
from their Viking ancestors who roamed far and wide. Thats
why no visit to the country is complete without engaging in
its maritime past.
66 An Artistic Metaphor
The uniting of two halves of a painting is illustrative of the
improving relations between China and Taiwan. Yet it also
highlights a turbulent past and the many issues that still
need resolving.
70 Innovative Grilling
The humble backyard barbecue has been elevated into
a culinary art form by daring chefs around the world.
74 Robots More Like Us
Simple human tasks that require motion and perception
are incredibly challenging for robots. The race is now on
to develop better and cheaper robot arms and hands.
78 Managing the Yellow River
Its digital management system is a wonder, but with
communities battling over water use theres a long way to
go before Chinas second-largest river is off life-support.
82 Italian Chocolate
Pasta is more readily associated with Italy than chocolate,
but local artisans have a long and rich tradition that
challenges the worlds best
86 Crouching Jaguar, Hidden Tiger
It boasts all the luxury and ride refinement that you expect
from a Jaguar, but the XJL Supersport also delivers serious
performance, tight handling and lots of driving fun.
88 Other Business
Portfolio takes a light-hearted look at the latest business news.
Portfolio
Published for Emirates by
PO Box 2331, Dubai, UAE.
Telephone: (+971 4) 2824060,
fax:(+971 4) 2824436,
e-mail: emirates@motivate.ae
Printed by Emirates Printing Press, Dubai, UAE
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
Roui Francisco Senior Production Manager S Sunil Kumar Production Manager C Sudhakar Senior Advertisement
Manager Jaya Balakrishnan Email: jaya@motivate.ae General Manager Group Sales Anthony Milne Email: anthony@
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Emirates takes care to ensure that all facts published
herein are correct. In the event of any inaccuracy,
please contact The Editor. Any opinion expressed is
the honest belief of the author based on all available
facts. Comments and facts should not be relied upon
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other decisions. Articles are by their nature general,
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11-12 Contents.indd 12 8/21/11 1:45:17 PM
BAE11-03-013_LO_Portfolio_206x270_e_ZS.indd 1 18.07.11 09:25
Portfolio Passport Western Guy 270x206-E.indd 1 7/13/11 12:24 PM
Record
Food Prices
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15
Notebook
BUSINESS NEWS IN BRIEF
September 2011
Lragic sufforing moro Lhan in Lho Horn
of Africa,` ZooIIick said, noLing Lho bank
was sLoing u shorL-Lorm hoI Lhrough
safoLy noLs Lo Lho oor and Lho vuInorabIo
in Iacos Iiko Konya and ELhioia.
Tho 18,-naLion Iondor said iL was
roviding $686 miIIion Lo savo Iivos,
imrovo sociaI roLocLion, and sur
oconomic rocovory and droughL rosiIionco
for ooIo in Lho Horn of Africa.
ZooIIick, who has rooaLodIy urgod Lho
Grou of 2u major oconomios Lhis yoar
Lo mako Lho food crisis a Lo rioriLy, said
moro funds woro urgonLIy noodod for Lho
rogion. Of Lho LoLaI rosourcos commiLLod
so far - $1.u3 biIIion - $8,u miIIion havo
boon assignod Lo omorgoncy offorLs, wiLh
Lho romaindor dodicaLod Lo Iongor-Lorm
objocLivos. An osLimaLod addiLionaI $1.4
biIIion is noodod, Lho bank said.
Tho WorId Bank highIighLod voIaLiIiLy
in food ricos, oinLing Lo an 11 or conL
riso in rico ricos boLwoon May and JuIy
foIIowing a gonoraI docIino sinco Iobruary.
DomosLic food ricos conLinuod Lo
fIucLuaLo widoIy across Lho gIobo, iL said.
Tho annuaI rico changos in maizo in Lho
12 monLhs u Lo Juno 2u11, for oxamIo,
rangod from incroasos of 1uu or conL or
moro in KamaIa, Mogadishu, and KigaIi
markoLs Lo roducLions of 1 or conL in
PorL-au-Princo and Moxico CiLy.
And rising food ricos havo boon major
drivors of gonoraI infIaLion in a numbor of
counLrios. In China, Lho ricos of shrim
and fish roso sharIy in Lho roconL quarLor,
Ioaving food rico infIaLion aL 14.6 or
conL in Juno ovor a yoar oarIior.
In VioLnam, food rico infIaLion was
u 3u.6 or conL, duo Lo IocaIIy roducod
food iLoms such as moaL and vogoLabIos.
InfIaLion in Lhoso counLrios is oxocLod Lo
modoraLo in Lho noar fuLuro as IocaI suIy
imrovos and assuming monoLary oIicy
is LighLonod Lo addross macrooconomic
vuInorabiIiLios,` Lho bank said.
?HH=IKB<>LG>:KK><HK=
oaks and voIaLiIiLy in commodiLy markoLs
aro driving Lho Iivos of Lho worId`s oorosL
ooIo Lo Lho odgo of survivaI, Lho WorId
Bank has warnod.
GIobaI food ricos in JuIy woro 33 or
conL highor Lhan a yoar ago, whiIo oiI
ricos woro u 4 or conL, driving u Lho
rico of forLiIisors, Lho dovoIomonL Iondor
said in a quarLorIy roorL. PorsisLonLIy
high food ricos and Iow food sLocks
indicaLo LhaL wo`ro sLiII in Lho dangor
zono, wiLh Lho mosL vuInorabIo ooIo Lho
IoasL abIo Lo coo,` WorId Bank rosidonL
RoborL ZooIIick said in a sLaLomonL.
According Lo Lho bank`s IaLosL Iood
Prico WaLch roorL, ricos LhaL aro now
noar Lho rocord highs of 2uu8 havo boon a
major conLribuLor Lo Lho omorgoncy in Lho
Horn of Africa. Tho crisis is LhroaLoning
Lho Iivos of moro Lhan 12 miIIion ooIo.
Nowhoro aro high food ricos, ovorLy
and insLabiIiLy combining Lo roduco
15-18 Notebook.indd 15 8/22/11 10:43:20 AM
N u mb e r s G a me
In Figures
The World
$1,700
for an ounce of gold was exceeded for the first
time as ratings agency Standard & Poor stripped
the US of its triple-A credit status. Worried investors shunned
equities to pursue the yellow metal after pledges from the G7
countries and the European Central Bank failed to allay concerns.
3
kilometres is the length of
the HAMAD that has been
etched in the sands of Al Futaisi
Island, which is owned by UAE
billionaire Sheikh Hamad Bin
Hamdan. The sheikhs other
purchases include a $2.4 million
Bugatti as well as the worlds
largest truck, which is 64 times
the size of the original and has
an entire apartment inside.
$42
million in
endorsement
contracts was bagged by Li Na,
the first Chinese tennis player
to win a major tennis title. This
is set to make her the worlds
second-highest earning female
athlete after Maria Sharapova.
$1
billion will be spent by
US auto giant Ford on
a plant in India in a bid to ramp
up production to exploit Indias
$400
is the cost
of a nine-
course gourmet meal at a glitzy
Harrods venue in London.
Thomas Keller, the US chef
who holds seven Michelin
stars, plans to create a pop-up
version of his French Laundry
restaurant at the 10-day
event, starting October 1.
$439
million aquatics
centre
designed by renowned
Iraqi-architect Zaha
Hadid is ready for
the London 2012
Olympic Games.
Its the first London
landmark in the portfolio
of the Pritzker Architecture
prize-winning architect whos
been residing in London for
the past four decades.
burgeoning car market. The
new factory, in the western state
of Gujarat, will employ around
5,000 workers and will be the
firms second in the country.
WhiIo mosL invosLors woro
fIooing markoLs, Warron BuffoLL`s
Borkshiro HaLhaway usod Lho
Iow ricos Lo buiId iLs oquiLy
hoIdings, osociaIIy in WoIIs
Iargo & Co. Tho biIIionairo
invosLor said Lho markoL docIino
was an oorLuniLy for buying
sLocks on saIo`.
BuffoLL`s firm addod .,
miIIion sharos of WoIIs Iargo &
Co, Lho biggosL US homo Iondor.
This boosLod Lho hoIding by 2.8
or conL. Borkshiro accoIoraLod
urchasos on AugusL 8 as Lho
SLandard & Poor`s uu Indox
Iungod 6., or conL, iLs sLooosL
docIino sinco Docombor 2uu8.
I Iiko buying on saIo,`
BuffoLL, Borkshiro`s CEO and
hoad of invosLmonLs, said in a
LoIovision inLorviow. BuffoLL,
8u, is sonding on sLocks and
Lakoovors as noar-rocord Iow
inLorosL raLos IimiL roLurns in
fixod incomo. Banks, facing
LighLor roguIaLion, can sLiII bo
IonLy rofiLabIo,` BuffoLL said.
San Irancisco-basod WoIIs
Iargo, which counLs Borkshiro
as iLs biggosL sharohoIdor,
foII 12 or conL in Lho Lhroo
monLhs ondod Juno 3u and
has sIiod 11 or conL in Lho
curronL quarLor.
Tho incroaso in Lho WoIIs
Iargo sLako cosL Borkshiro
abouL $2,, miIIion, assuming
urchasos camo aL Lho bank`s
avorago Lrading rico for Lho
socond quarLor of $28.3 a
sharo.
SHARES
ON SALE
16
Notebook
Portfolio
15-18 Notebook.indd 16 8/22/11 10:43:22 AM
Rosoarch In MoLion, makor of Lho BIackBorry smarLhono and
PIayBook LabIoL comuLor, may havo Lho mosL Lo Ioso from
GoogIo`s doaI Lo acquiro MoLoroIa MobiIiLy HoIdings.
GoogIo`s roosod $12. biIIion acquisiLion wouId Ioavo RIM
a smaIIor Iayor roIaLivo Lo rivaIs, which may forco iL Lo sLriko an
aIIianco wiLh anoLhor comany or soII iLsoIf Lo romain comoLiLivo.
WiLh GoogIo`s cash and sofLwaro oxorLiso MoLoroIa may rosonL
a dirocL chaIIongo Lo RIM in iLs LradiLionaI sLronghoId - Lho
cororaLo markoL.
AIroady Iosing markoL sharo in smarLhonos, RIM is sooing
sovoraI comoLiLors boyond GoogIo and MoLoroIa gain scaIo and
oxorLiso. In Iobruary, mobiIo-hono makor Nokia Oyj sLruck a
sLraLogic arLnorshi wiLh MicrosofL. LasL yoar, HowIoLL-Packard,
Lho worId`s IargosL comuLor comany, boughL handsoL makor PaIm.
RIM is Iosing markoL sharo as consumors Lurn Lo mobiIo honos
LhaL can run gamos, surf Lho wob and handIo oLhor comuLing
Lasks. Tho comany`s sharo of Lho gIobaI smarLhono markoL foII
Lo 12 or conL in Lho socond quarLor, from 1 or conL a yoar oarIior.
Challenge for RIM
Android bocamo Lho worId`s Ioading mobiIo-hono ooraLing
sysLom ovor Lho samo oriod, rising Lo 43 or conL of Lho markoL.
AIo cIimbod Lo 18 or conL, from 14 or conL a yoar oarIior.
NO DOWNGRADE FOR US
On August 5 Standard & Poor
cut its US credit rating to AA+
from AAA, saying lawmakers
failed to cut spending enough
to reduce record deficits.
However, other rating
agencies have not followed
suit. Fitch Ratings affirmed its
AAA credit rating for the United
States and said the outlook is
stable, citing the nations central
role in the global financial system
and its flexible, diverse economy.
Moodys Investors Service also
affirmed its top US ranking.
Since S&P downgraded
the United States, the yield on
the 10-year Treasury note, a
benchmark for everything from
mortgages to car loans, has
declined to as low as 2.03
per cent from a high this year
of 3.77 per cent.
However, Fitch has warned
the US may be placed on
negative outlook, indicating
more than a 50 per cent
probability the nation will be
downgraded in the next two
years, should weaker than
estimated economic growth
or a failure by a congressional
committee to enact $1.2
trillion in budget cuts spur
projected debt levels to rise
more than estimated.
Marketable US government
debt outstanding has risen to
$9.4 trillion from $4.34 trillion in
mid-2007 as the government
borrowed to bail out the
banking system and lift the
economy out of recession. The
US went from budget surpluses
averaging $139.7 billion from
1998 through 2001 to a deficit
of $1.29 trillion last year.
That has not raised the
countrys borrowing costs,
however. Average debt yields
of 1.5 per cent in July compare
with 6.54 per cent in 2000.
Fitch forecasts publicly
owned federal debt will
stabilise at 85 per cent of gross
domestic product and gross
government debt at 105 per
cent, higher than any other
AAA-ranked sovereign entity
and at the limit of debt that
would be consistent with a
top credit grade.
17
Notebook
September 2011
15-18 Notebook.indd 17 8/22/11 10:43:25 AM
EVENT NAME: SMART AIRPORTS WORLD MENA 2011
WEBSITE: TERRAPINN.COM/2011/SMART-AIRPORTS-WORLD-MENA
DATE: 26-28 SEPTEMBER, 2011 VENUE: PARK HYATT, DUBAI
EVENT NAME: Light Middle East
WEBSITE: lightme.net
DATE: 12-14 SEPTEMBER, 2011
VENUE: Dubai International Convention and Exhibition Centre
EVENT NAME: Domotex Middle East and R&T 2011
WEBSITE: domotex-middle-east.com
DATE: 12-14 September, 2011
VENUE: Dubai International Convention and Exhibition Centre
EVENT NAME: 3rd Annual Aviation Security 2011
WEBSITE: aviationsecurityme.com
DATE: 18-21 September, 2011
VENUE: Grand Millennium Hotel, Dubai
EVENT NAME: Materials Handling Middle East
WEBSITE: materials-handling-dubai.com
DATE: 25-27, September, 2011
VENUE: Dubai International Convention and Exhibition Centre
EVENT NAME: 19th Annual Middle East Petroleum & Gas Conference
WEBSITE: cconnection.org
DATE: 2-4 October, 2011
VENUE: Mina ASalam, Madinat Jumeirah, Dubai
EVENT NAME: International Bar Association Annual Conference
WEBSITE: int-bar.org/conferences/Dubai2011
DATE: 30 October4 November, 2011
VENUE: Dubai International Convention & Exhibition Centre, Dubai
EVENT NAME: GITEX Shopper 2011
WEBSITE: gitexshopperdubai.com
DATE: 8-15 October, 2011
VENUE: Airport Expo, Dubai
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DUBAI
United Arab Emirates
AJMAN
RAS AL KHAIMAH
UMM AL
QUAWAIN
FUJAIRAH
SHARJAH
DUBAI
ABU DHABI
18
Notebook
Portfolio
15-18 Notebook.indd 18 8/22/11 10:43:27 AM
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September 2011
:
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rocaIIod waLching Lho chargos
Lick u ovory 1u soconds on
Lho dashboard moLro on Lho way Lo
Lho airorL, ho rosoIvod Lo Lry ubIic
LransorLaLion noxL Limo.
Looking aL Lho monoy makos you
roaIiso LhaL a car isn`L aIways a good idoa,`
said Van Dodom, a commorciaI saIos
managor for IBM in Eindhovon.
BuL his ricoy rido was noL in a Laxi.
Ho was driving his own VoIvo XC6u.
Tho car had boon ouLfiLLod wiLh Lho
moLro so LhaL Van Dodom couId Lako arL
in a LriaI of a conLrovorsiaI govornmonL
Lax roosaI Lo chargo drivors a foo for
Lho kiIomoLros Lhoy drivo. Tho moLro aIso
facLors in Lho cosL Lo socioLy in Lho form of
oIIuLion, Lraffic congosLion, groonhouso
gas omissions, and woar and Loar on roads.
Hookod u Lo Lho inLornoL wiroIossIy
and Lo GPS, Lho sysLom LabuIaLos a chargo
for oach car Lri by using a miIoago-basod
formuIa LhaL aIso Lakos accounL of a car`s
fuoI officioncy, Lho Limo of day and Lho
rouLo. (Driving on busior Lhoroughfaros
cosLs moro Lhan driving on Ioss-LravoIIod
roads.) AL Lho ond of oach monLh, Lho
vohicIo`s ownor wouId rocoivo a biII
doLaiIing Limos and cosLs of usago, noL
unIiko a coIIhono biII.
GovornmonLs in car-cIoggod rogions
of Euroo, Asia and ovon Lho UniLod
21
SLaLos havo shown
an oagornoss Lo oxIoro
such sysLoms, buL Lhoy faco a
nagging chaIIongo in Iacing Lhom in
rivaLo vohicIos. Evon in onvironmonLaIIy
conscious Iacos Iiko Lho NoLhorIands,
voLors and oIiLicians ofLon vohomonLIy
ooso Lho rogrammos, ciLing rivacy
concorns and Lho inLroducLion of whaL
amounLs Lo a now Lyo of Lax.
In Lho NoLhorIands, whoro by somo
accounLs rosidonLs havo Lho highosL
avorago commuLing Limo in Euroo
and a rouLaLion for rocoLiviLy
Lo onvironmonLaI innovaLion, Lho
govornmonL had Iannod Lo insLiLuLo a
naLionwido sysLom noxL yoar. BuL Lho Ian
was shoIvod whon a now govornmonL
camo Lo owor in 2u1u. Tho winning
arLy said, 'If you oIocL us, Lhoro won`L bo
now Laxos,` and kiIIod Lho Ian,` said Ab
OosLing, a ciLy officiaI in Eindhovon.
SuorLors of Lho moLros conLond
LhaL Lho chargos aro moro oquiLabIo
Lhan curronL Laxos Iiko auLomobiIo
urchaso and rogisLraLion foos bocauso
Lhoy dorivo from acLuaI uso raLhor Lhan
moro ownorshi. If imosod, Lhoy couId
suIanL fuoI and vohicIo Laxos as woII
as LoIIs. GovornmonLs couId rogram
comuLors Lo roquiro consisLonL gas
guzzIors Lo ay highor raLos, for oxamIo.
DisLanco charging aIso rovidos a
moans of roIacing docIining rovonuos
from fuoI Laxos as moro ooIo drivo
highIy officionL hybrid or oIocLric cars.
EquaIIy imorLanL, sLudios havo found
LhaL Lho moLros rovido insLanLanoous
nogaLivo foodback, Lho kind LhaL
sychoIogisLs say changos bohaviour. AL
Lho boginning you`ro Iooking aL iL aII Lho
The Netherlands has shelved a controversial programme
that would have installed a metre in every car to impose
a new tax based on mileage, fuel use and roads used.
But the idea isnt dead and is being considered in other
countries, reports Elisabeth Rosenthal.
Charged by the Kilometre
BUSINESS NEWS IN BRIEF
Observer
21-22 Snippets (Observer Opener).indd 21 8/21/11 1:01:04 PM
Portfolio
Observer
22
Limo and Lhinking of cosLs, and roLLy
quickIy iL sLarLs Lo infIuonco whaL you do,`
said Van Dodom, whoso rush-hour airorL
rido wouId havo incurrod a chargo of jusL
ovor $ undor Lho raLos roosod in Lho
NoLhorIands. Tho offocL has boon IasLing:
Evon Lhough Lho LriaI was Lwo yoars ago
and Lho moLro has boon romovod, ho now
works from homo moro in Lho mornings
and waIks Lo Lho markoL, ho said.
BG>NKHI>, counLrios Iiko Gormany and
Donmark woro Iooking Lo Lho NoLhorIands
Lo LosL Lho LochnoIogy` and woro
disaoinLod whon Lho Ian was shoIvod,
said Podor Jonson, a LransorLaLion oxorL
aL Lho Eurooan EnvironmonL Agoncy.
Gormany has aIroady sLarLod using a GPS-
basod charging sysLom for Lrucks, and
Iranco is Ianning Lo do so, a sLo LhaL
is Ioss oIiLicaIIy voIaLiIo Lhan charging
drivors of rivaLo cars.
In Lho UniLod SLaLos, sLaLos incIuding
Orogon, Toxas and MinnosoLa havo
oxIorod miIoago charging sysLoms, buL
Lho firsL LonLaLivo roosaIs havo facod
obsLacIos Lhoro as woII. A IongsLanding
roosaI in Orogon Lo inLroduco such
charging for oIocLric cars sLaIIod in
commiLLoo Lhis sring and novor mado iL
Lo a voLo. IL suggosLod a LransiLionaI raLo
of u.8 conLs or miIo in 2u1 and 1.8
conLs or miIo by 2u18.
AILhough Lho rogrammo was
rimariIy an aLLomL Lo rocou IosL
rovonuo from fuoI Laxos, iL was aIso
inLondod Lo LosL Lho waLors for disLanco
charging LhaL wouId ovonLuaIIy aIy Lo
aII cars. Wo sLarLod wiLh a now Lyo of
car whoro Lho oIicy argumonL was
cIoar: EIocLric vohicIos don`L ay gas
Laxos,` said Jamos WhiLLy, managor
of Orogon`s Offico of InnovaLivo
ParLnorshis and AILornaLivo Iunding.
BuL Lho idoa was Lo goL by Lho anxioLy
abouL whaL Lho now Lax sysLom was
abouL, Lo soo if iL wouId bo accoLabIo.`
Tho Orogon roosaI did noL onvisago
insLaIIing roaI-Limo GPS-basod moLros
in oach car, buL moroIy rocording Lho
miIoago Lhough Lho odomoLor. An oarIior
LriaI using a GPS uniL had sLirrod a
ubIic ouLcry ovon Lhough Lho uniL did
noL rovoaI IocaLions as iL roIayod daLa Lo
Lho sLaLo. Tho ubIic didn`L LrusL LhaL,`
WhiLLy said.
Eric-Mark HuiLoma, a LransorLaLion
sociaIisL wiLh IBM, which dovoIood
Lho sysLom usod in Lho NoLhorIands in
coIIaboraLion wiLh Lho somiconducLor
comany NXP, said LhaL Lho hardwaro
and sofLwaro orformod woII in Lho LosLing
oriod. Tho LriaIs work woII, buL iL`s firsL a
sychoIogicaI issuo and socond a oIiLicaI
choico,` ho said. To do iL you nood suorL
of Lho govornmonL, and iL noods Lo haon
whon Lhoro is noL an oIocLion bocauso
Lhoro`s aIways a biL of rosisLanco.`
Undor Lho shoIvod Ian in Lho
NoLhorIands, raLos wouId havo
variod from 4. Lo 4 conLs or miIo.
GovornmonL sLudios rodicLod LhaL 6u or
,u or conL of drivors wouId ay Ioss Lhan
undor Lho curronL sysLom of car LaxaLion.
Tho Eurooan Union conLinuos Lo rod
mombor sLaLos Lo Lry disLanco charging
dosiLo Lho soLbacks. High car and fuoI
Laxos havo faiIod Lo sLom Lho growLh
of car uso in WosLorn Euroo, Ioaving
donsoIy ouIaLod counLrios araIysod
aL rush hour.
BoIgium Ians Lo sLarL a smaII LriaI
of u drivors in SoLombor. Traffic
jams aro oxocLod Lo doubIo by 2u2u;
Lho roads aro fuII, fuII, fuII,` said IroidI
MarLons, dirocLor of Lho iIoL rogrammo
in Louvon, BoIgium. Singaoro is aIso
conLomIaLing a miIoago-basod Lax
sysLom, Lhough so far Lho Ians do noL
incIudo a digiLaI disIay, which somo
oxorLs soo as a cruciaI comononL.
According Lo daLa coIIocLod in Lho
Eindhovon LriaI, waLching Lho smaII
chargos add u Lo changod driving habiLs.
Sooing Lho moLro hoIs,` HuiLoma said.
Tho oId Laxos don`L do LhaL - you fiII Lho
Lank, ay and Lry noL Lo worry anymoro.`
In the Netherlands trial the metre was hooked up to the internet wirelessly and to GPS.
This approach raised privacy concerns and created public opposition.
21-22 Snippets (Observer Opener).indd 22 8/21/11 1:01:06 PM
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Monsoon ad Portfolio 270x206.ai 1 8/21/11 1:09 PM
O N E 2 WAT C H
The Commonwealth Bank of Australia, the countrys biggest
bank, has named lawyer Ian Narev as the new chief executive
with effect from November. Bank analysts and investors
welcomed the announcement as succession plans had been
underway for the past two and a half years. During that time
Narev worked closely with the outgoing CEO, Ralf Norris, to
ensure a smooth transition. Narev, who is 44 years old, has the
full support of the board. Chairman David Turner said: Ian is
an extraordinary executive who has restructured and revitalised
business. In private banking he has delivered double digit
revenue and profit growth with significant efficiency gains. He
is a proven and inclusive leader. The banks stock rose 1.4 per
cent as shareholders welcomed the news.
Currently the Commonwealth Bank of Australia is aggressively
looking for new growth opportunities in offshore banking and global
asset management, particularly in Asia. Narevs strong background
in strategy and the experience gained with spearheading several
of the banks acquisitions including the $2 billion takeover bid of
BankWest in 2008 as well as having formerly led McKinsey & Cos
Asia strategy, will stand him in good stead.
New Zealand-born Narev is clearly multi-talented. At the age
of 12 he was a child star in the New Zealand television series
Children of Fire Mountain. He grew up to pursue law, securing
not one but two master degrees from Cambridge University
in 1994 and New York University in 1998. His career began in
the legal profession before moving into finance when he joined
Commomwealth Bank in 2007.
TEXT: HILDA DSOUZA
Ian Narev
Weak European Figures
Tho Gorman oconomy, Euroo`s IargosL, aImosL sLaIIod in Lho
socond quarLor as Lho rogion`s sovoroign-dobL crisis woighod
on confidonco. Gross domosLic roducL, adjusLod for soasonaI
offocLs, roso u.1 or conL from Lho firsL quarLor, whon iL jumod
a rovisod 1.3 or conL, according Lo Lho IodoraI SLaLisLics Offico
in Wiosbadon. EconomisLs had forocasL growLh of u. or conL.
Irom a yoar oarIior, GDP incroasod 2.8 or conL.
Tho worso-Lhan-oxocLod GDP daLa from Gormany, which
had boon oworing ouro-aroa growLh, adds Lo signs Euroo is
in dangor of a ronowod oconomic sIum as Lho dobL crisis curbs
sonding across Lho rogion. Iranco`s rocovory unoxocLodIy
ground Lo a haIL in Lho socond quarLor, ILaIian and Sanish
oxansion romainod sIuggish and Grooco`s oconomy conLracLod.
GrowLh in Lho 1,-naLion ouro rogion sIowod Lo u.2 or conL in
Lho socond quarLor from u.8 or conL in Lho firsL, according Lo Lho
Eurooan Union`s sLaLisLics offico in Luxombourg.
Iranco`s oconomy sLagnaLod in Lho Lhroo monLhs Lhrough Juno,
whiIo roorLs on AugusL showod ILaIy`s GDP roso u.3 or conL
and Sain`s incroasod u.2 or conL. Tho DuLch oconomy grow a Ioss-
Lhan-forocasL u.1 or conL, whiIo AusLria`s oxandod ono or conL.
Euroo`s woak figuros aro a furLhor confirmaLion of a cooIing
gIobaI oconomy. Jaan cuL iLs annuaI growLh on woakor oxorL
rosocLs, Hong Kong`s oconomy unoxocLodIy shrank in Lho
socond quarLor and China`s oxansion sIowod. In Lho US, IodoraI
Rosorvo Chairman Bon S. Bornanko signaIIod ho may oxand
Lho rocord monoLary sLimuIus Lo rovivo a faILoring rocovory and
roduco unomIoymonL sLuck aL around nino or conL.
TEXT: HILDA DSOUZA
Portfolio
Observer
24
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The Volkswagen car storage unit at Wolfsburg, Germany. Growth
in the Euro zone slowed to 0.2 per cent in the second quarter.
24-27 Observer.indd 24 8/21/11 1:18:34 PM
Value in
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127843_206x270_e_K_Pearls_Portfo 1 25.01.11 10:07
The South African residential property market is showing a rise in
the number of first time homebuyers, who now make up 15 per
cent of the total. This is the highest level ever achieved for first
time homebuyers in the past five years. In 2008, a boom time in
property, only 15 per cent of buyers were first timers.
The rise in this type of buyer has probably contributed to the
average house price moving upwards, albeit slowly. It has now
reached the point where at R803,751 ($112,000) the national
average house price has broken through the R800,000 barrier
for the first time.
An increase in the number of loans being granted by banks and
the raising of the transfer duty tax exemption to homes sold for
up to R600 000, has been a prime cause in the rise of first time
buyers. Also encouraging this market are the lowest interest rates
in 35 years and that real estate is now very well priced.
Manchester United Plans IPO
SOUTH AFRICANS SNAP UP PROPERTY
In South Africa the rise in first time homebuyers appears to be
closely linked to the growth of the middle class.
Portfolio
Observer
26
ManchosLor UniLod may bo Ianning a $1
biIIion iniLiaI ubIic offoring in Singaoro,
as Lho rocord 1-Limo EngIish soccor
chamion sooks Lo cuL dobL LhaL has
fuoIIod fan roLosL.
CrodiL Suisso Grou AG (CSGN) is
working on Lho LransacLion, which may
Lako Iaco Lhis yoar, according Lo unnamod
sourcos. Tho Promior Loaguo Loam had
boon considoring Hong Kong for Lho IPO
buL now favours Singaoro, aILhough no
finaI docision has boon mado. UniLod is
roady Lo soII abouL 2 or conL.
UniLod, oxamining ways Lo roduco iLs
financing cosLs and raiso monoy LhaL
couId bo usod Lo buy Iayors, is drawing
on Lho sorL`s rising ouIariLy in a rogion
whoro iL has abouL 1u miIIion fans. A
IisLing by UniLod wouId mark a vicLory for
Singaoro, which is comoLing wiLh Hong
Kong Lo aLLracL iniLiaI ubIic offorings by
Eurooan comanios.
UniLod wanLs Lo acquiro Iayors LhaL
can hoI iL fond off Lho chaIIongo of cIubs
incIuding ManchosLor CiLy, ownod by
Shoikh Mansour bin Zayod AI Nahyan,
and ChoIsoa, ownod by Russian biIIionairo
Roman Abramovich.
Ians havo roLosLod againsL Lho Loam`s
US ownors, Lho GIazor famiIy, ovon Lhough
UniLod has ickod u four Ioaguo LiLIos
and a Eurooan Cu sinco Lhoy boughL
Lho Loam in 2uu. Tho cIub sonds abouL
|4 miIIion a yoar Lo sorvico a |uu
miIIion bond. Tho bond, which maLuros
in 2u1,, roIacod bank dobL roquirod for
Lho urchaso. ThaL monoy couId bo usod
Lo buy Iayors and roduco LickoL ricos aL
Lho roviousIy dobL-froo cIub, according Lo
somo suorLors.
In March, Lho Loam`s aronL comany,
Rod IooLbaII JoinL VonLuro LLd.,
announcod a rocord |1u4., miIIion ($1,u
miIIion) fiscaI-yoar Ioss bocauso of cosLs
roIaLod Lo swaing a Iong-Lorm bank Ioan
for Lho doIIar and sLorIing bond IasL yoar
and on Iowor incomo from Iayor saIos.
UniLod says iL`s Lho mosL-suorLod
Loam in Lho worId, wiLh a cIub-sonsorod
survoy rovoaIing a gIobaI foIIowing of
moro Lhan 33u miIIion. Tho GIazors`
commorciaI ooraLion, Iod by formor J.P.
Morgan bankor Edward Woodward, has
socurod gIobaI sonsorshi and Iiconsing
agroomonLs LhaL havo Iod Lo annuaI
rovonuo doubIing Lo abouL |3uu miIIion
in six yoars.
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24-27 Observer.indd 26 8/21/11 1:18:39 PM
US Posts Good Figures
US indusLriaI ouLuL rocordod iLs bosL gain in sovon monLhs in
JuIy as Lho auLo socLor bouncod back from suIy disruLions
wroughL by Jaan`s dovasLaLing oarLhquako in March.
Tho surrisingIy sLrong roducLion daLa, LogoLhor wiLh a
smaIIor-Lhan-oxocLod docIino in homo buiIding, furLhor oasod
foars Lho oconomy was aL risk of conLracLing. IndusLriaI ouLuL
incroasod u. or conL, Lho IodoraI Rosorvo said, afLor a u.4 or
conL gain in Juno - noarIy doubIo oconomisLs` oxocLaLions for a
u. or conL riso.
ManufacLuring roso u.6 or conL as moLor vohicIos roducLion
surgod .2 or conL afLor faIIing u. or conL in Juno. ExcIuding
auLos, manufacLuring roso u.3 or conL, oinLing Lo rosiIionco in
Lho socLor LhaL has boon Lho oconomy`s main iIIar of suorL,
ovon whon rogionaI facLory acLiviLy has boon cooIing.
BuL high raLos of naLionaI unomIoymonL aro sLiII a rosLrainL
on Lho aco of rocovory as consumor sonding accounLs for
abouL ,u or conL of US oconomic acLiviLy and iL hardIy grow in
Lho socond quarLor.
Tho IaLosL daLa foIIows oarIior roorLs showing somo icku in
nonfarm omIoymonL as woII as roLaiI saIos. Tho oconomy baroIy
grow in Lho firsL haIf of 2u11, hoId back by high gasoIino ricos
and suIy chain disruLions from Jaan.
Tho indusLriaI roducLion daLa indicaLod Lho Jaan-inducod
disruLions Lo manufacLuring had aImosL unwound.
Observer
27
September 2011
WORLDS HIGHEST-PAID FOOTBALLERS (MAY 2010-11)
No. Name Estimated Net Earnings Current
Worth ($ million) ($ million) Club
1. David Beckham 219 40 Los Angeles Galaxy
2. Cristiano Ronaldo 160 38 Real Madrid
3. Lionel Messi 110 32 Barcelona
4. Ricardo Kaka 100 25 Real Madrid
5. Ronaldinho 90 24 Flamengo
6. Thierry Henry 60 21 New York Red Bulls
7. Wayne Rooney 59 20 Manchester United
8. Frank Lampard 43 17 Chelsea
8. Zlatan Ibrahimovic (tie) 60 17 AC Milan
10. Samuel Etoo 40 15 Inter Milan


AMERICAS HIGHEST-PAID CEOS
No. Name Company Age One-year
total ($ million)
1. Stephen Hemsley UnitedHealth Group 58 101.96
2. Edward Mueller Qwest Communications 64 65.80
3. Robert Iger Walt Disney 60 53.32
4. George Paz Express Scripts 56 51.52
5. Lew Frankfort Coach 65 49.45
6. Ralph Lauren Polo Ralph Lauren 71 43.00
7. John Martin Gilead Sciences 59 42.72
8. James Hackett Anadarko Petroleum 57 38.94
9. John Chambers Cisco Systems 61 37.90
10. Ivan Seindenberg Verizon Communications 64 36.75


HOLLYWOODS HIGHEST-EARNING ACTORS
No. Name Earnings ($ million)
1. Leonardo DiCaprio 77
2. Johnny Depp 50
3. Adam Sandler 40
4. Will Smith 36
5. Tom Hanks 35
6. Ben Stiller 34
7. Robert Downey Jr. 31
8. Mark Wahlberg 28
9. Tim Allen 22
10. Tom Cruise 22
The World
Top 10
SOURCE: FORBES.COM
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Dont Bank On Smartphones
PATRICK COLLINSON
GHHG>DGHPLPAHEB>L;>ABG=
Zous. BuL socuriLy oxorLs aII agroo LhaL
Zous is Lho mosL ornicious 'Lrojan horso`
- a dosLrucLivo rogrammo disguisod as
an aIicaLion - on Lho inLornoL. During
Lho IasL four yoars iL has infocLod miIIions
of PCs, Laking conLroI of Lho comuLor and
sLoaIing orsonaI banking doLaiIs.
MicrosofL has foughL a running baLLIo
againsL Zous, which is ono of Lho mosL
difficuIL Lyos of maIwaro Lo doLocL - buL
Lho groaL foar among cyborcrimo oxorLs
is no Iongor your homo comuLor. A now
sLrain of Zous, dubbod 'ZiLmo` (iL sLands
for 'Zous in Lho mobiIo`) has bogun Lo
oxIoiL a hugo hoIo in orsonaI banking
socuriLy: Lho smarLhono in your ockoL.
In Lho asL monLh, Lhis maIicious now
vorsion of Zous, which aLLacks honos
using Lho Android ooraLing sysLom, has
sarkod inLonso concorn among socuriLy
comanios. Ono major US inLornoL
socuriLy rovidor, TrusLoor, cIaimod
GoogIo Android is fraudsLors` hoavon`.
Tho CEO of TrusLoor, Mickoy Boodaoi,
said in a bIog: Bad nows: fraudsLors havo
aII Lho LooIs Lhoy nood Lo offocLivoIy Lurn
mobiIo maIwaro inLo Lho biggosL cusLomor
socuriLy robIom wo`vo ovor soon.`
BuL iL`s noL jusL Zous LhaL smarLhono
cusLomors shouId bo worrying abouL,
according Lo AIox Iidgon of MWR
InfoSocuriLy, ono of Lho biggosL cyborcrimo-
busLing ouLfiLs in BriLain. Tho mobiIo
hono indusLry is noL fiL for uroso,
osociaIIy for financiaI LransacLions,` says
Iidgon. Tho ovidonco is irrofuLabIo. You
cannoL bo assurod of socuriLy wiLh modorn
smarLhonos. As soon as Lho handsoL is
comromisod, Lhon any daLa is u for grabs.`
Iidgon says Lho fauIL Iios wiLh Lho handsoL
manufacLurors raLhor Lhan Lho noLwork
rovidors or banks. In Lho raco Lo bring now
honos and now foaLuros Lo Lho markoL,
many havo IofL socuriLy Iow on Lho agonda.
YoL modorn smarLhonos aro in offocL PCs
wiLh honos aLLachod and, arLicuIarIy whon
Lhoy aro usod in ubIic Wi-Ii hoLsoLs, Lhoy
can bocomo faLaIIy comromisod.
MKHC:GL<:G onLor a smarLhono in
many dovious ways. AII you havo Lo do is
cIick on a Iink or aLLachmonL LhaL conLains
Lho virus, and wiLhin soconds iL can socroLIy
soizo conLroI of Lho hono. ThaL Iink mighL
bo a LinyurI in TwiLLor or Lho aLLachmonL
couId bo a vCard, Lho sLandard formaL for
sonding a businoss card Lo a hono.
Or iL couId bo LhaL you aro accossing
a wobsiLo in a caf. AL Wi-Ii hoLsoLs,
fraudsLors croaLo bogus gaLoways, known
as 'oviI Lwins`, Lo which Lho IaLosL mobiIo
honos wiII auLomaLicaIIy connocL.
Onco a connocLion is osLabIishod, aII
Lho informaLion assing Lhrough Lho
gaLoway can bo road dirocLIy or docryLod,
aIIowing fraudsLors Lo harvosL usor namos,
asswords and mossagos.
UnLiI now, Lhoso aLLacks havo boon
raro. BuL oxorLs say LhaL`s jusL bocauso
smarLhonos aro sLiII Laking
off. Wo`ro waIking
inLo a minofioId,`
says Iidgon, buL
nobody`s IisLoning.`
AL TrusLoor,
Boodaoi forocasLs
LhaL wiLhin 12 Lo
24 monLhs, moro
Lhan ono in 2u
of aII Android
honos and
iPads]iPhonos couId bocomo infocLod
by mobiIo maIwaro. BuiIding a oworfuI
frauduIonL Android aIicaLion LhaL sLoaIs
and abusos your idonLiLy and your bank
accounL is aImosL LriviaI. DisLribuLing
Lhoso aIicaLions on Lho Android markoL
is ovon moro LriviaI.`
Aro AIo iPhonos safor Lhan Android?
MWR InfoSocuriLy says AIo`s famod
socuriLy from virusos doosn`L quiLo LransIaLo
Lo mobiIo dovicos. BoLh IaLforms havo
robIoms,` says Lho comany.
BIackBorry honos aro considorod safor Lo
uso, as Lhoir makor, RIM, koos doLaiIs of
Lho IaLform a socroL, which makos iL much
hardor for aLLackors Lo wriLo maIwaro`.
Why noL simIy add an anLi-virus
rogrammo Lo your smarLhono? Tho bad
nows is LhaL Lho honos may havo boon
buiIL so oorIy in Lho firsL Iaco LhaL Lho
anLi-virus rogrammos won`L bo much
hoI. AII Lhoy do is givo a faIso sonso of
socuriLy Lo usors, say Lho oxorLs.
In IBI raids IasL yoar, co-ordinaLod
wiLh Lho BriLish oIico and assisLod by
DoII SocuroWorks, u gang mombors
susocLod of using Zous Lo hack inLo
comuLors and sLoaI $,u miIIion
woro arrosLod, buL Lho dosignor and
dovoIoor of Zous romains oIusivo.
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CHANGER
Wadah Khanfar, the director general of Al Jazeera,
has grown the company from a single channel to
a media network with multiple properties including the
Al Jazeera Arabic channel and Al Jazeera English. Hes
also managed to integrate social media in a way that few
other channels have, opening the door for the acclaimed
reporting on the Arab Spring, reports Nancy Cook.
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Khanfar had boon duoIIing wiLh Lho
Mubarak rogimo for 18 days. Tho
govornmonL jammod AI Jazoora`s
saLoIIiLo signaI, so LhaL mosL of iLs
audionco couId noL waLch iLs covorago.
Ayman MohyoIdin, Lho sLar roorLor
for AI Jazoora EngIish, had Lo hido
a camora on a random baIcony Lo
broadcasL Iivo shoLs of Cairo`s Tahrir
Squaro. PoIico rooaLodIy LhroaLonod
Lho noLwork`s roorLors, who sLood
showing Lhoir facos on air.
Now Mubarak, Iiko Tunisia`s Zino
oI-Abidino Bon AIi, was gono. Khanfar
couIdn`L boIiovo iL. Thoso dicLaLors woro
jusL a maLLor of facL - Iiko naLuro, Iiko
air,` ho says sovoraI wooks IaLor, as wo
LaIk in LhaL samo offico whoro ho firsL
hoard Lho nows. Thoy jusL oxisLod.`
Ho rocaIIs how ho mado Lho Lhroo-
minuLo waIk from his offico Lo Lho
Arabic-Ianguago nowsroom, fiIIod wiLh
omIoyoos, somo of Lhom EgyLian. Ho
insLrucLod Lho odiLors and roducors Lo
koo Lho camora on Tahrir Squaro and
noL movo iL. PuL Lho audio on, ho LoId
Lhom, buL don`L IoL any commonLaLors
or nows anchors soak. Ior 1u minuLos,
AI Jazoora showod Lho jubiIanL scono:
miIIions of roLosLors whooing,
cIaing, juming, and waving EgyLian
fIags, wiLh noL ono journaIisL sLraining
for a caroor-dofining Lurn of hraso. IL
was Lho mosL boauLifuI TV I havo ovor
soon,` Khanfar says. IL was jusL ubIic-
mado TV wiLhouL any inLorforonco.`
AI Jazoora`s suddon asconL has boon
big nows in Lho UniLod SLaLos Lhis
yoar. Ma^G^pRhkdMbf^l has wriLLon
abouL Lho noLwork and iLs roIo in
Lho rovoIuLionary ovonLs in Lho Arab
worId roughIy a dozon Limos sinco
Lho boginning of 2u11. SocroLary of
SLaLo HiIIary CIinLon commondod iLs
soriousnoss during hor March LosLimony
boforo Lho SonaLo Ioroign RoIaLions
CommiLLoo. Vioworshi of AI Jazoora
is going u in Lho UniLod SLaLos,` sho
said. You may noL agroo wiLh iL, buL
you fooI Iiko you`ro goLLing roaI nows
around Lho cIock.` AbsonL from aImosL
ovory major cabIo sysLom in Lho US, Lho
noLwork has found an audionco onIino,
dofLIy Iovoraging TwiLLor Lo drivo Lraffic
Lo Lho AI Jazoora EngIish wobsiLo. IL has
bocomo Lho Lhird-mosL-ouIar nows
ouLIoL on YouTubo.
Khanfar, offocLivoIy boLh CEO
and odiLoriaI dirocLor, dosorvos
Lho crodiL for growing AI Jazoora
inLo a noLwork caabIo of soizing
Lhis momonL. His socroL may bo
LhaL, dosiLo a docado working as a
managor, ho sLiII Lhinks of himsoIf as a
fioId journaIisL. Thoro aro many books
wriLLon abouL managomonL: 'How Lo
Bocomo a Managor in Iivo MinuLos,``
Khanfar says, Iaughing ouL Ioud. I don`L
Lhink LhaL`s righL. Tho firsL rinciIo
of managomonL is Lo obsorvo and Lo
undorsLand Lho Lruo siriL of Lho noLwork.`
ThaL siriL Iios in AI Jazoora`s
scrainoss, iLs divorsiLy, and iLs abiIiLy
Lo orsovoro amid Lho comIoxiLy of
Lho MiddIo EasL. Iiguring ouL how
Lo circumvonL an EgyLian rosidonL
who cuL off Lho counLry`s inLornoL and
Lho noLwork`s connocLion Lo Lho worId.
TrusLing viowors` coIIhono vidoos Lo LoII
Lho sLory of Lho rovoIuLion in Tunisia.
Rocognising LhaL Lho nows indusLry is
changing, and buiIding addiLionaI nows
rogrammos and roorLing IaLforms
around sociaI modia, arLicuIarIy TwiLLor
and usor-gonoraLod vidoo, Lo roaro for a
difforonL worId. And finding ways Lo sroad
Khanfar`s oLimism LhaL Lho rosL of Lho
worId ovonLuaIIy wiII viow AI Jazoora as a
significanL nows organisaLion. IL Iooks so
oxoLic Lo Amoricans, buL in Lho Arab worId,
iL`s CNN,` says SLovo CIomons, a sonior
foIIow aL Lho Now Amorica IoundaLion,
who sociaIisos in inLornaLionaI affairs.
Khanfar has sonL a IifoLimo Lhriving
amid uncorLainLy. Born in 168, ho grow
u in Rama, a PaIosLinian farming viIIago
of abouL uu rosidonLs. I`vo soon Lo
whaL oxLonL chaos croaLos a sonso of an
unimaginabIo, unoxocLod fuLuro,` ho says
as wo Ioavo Lho daiIy odiLoriaI mooLing.
You can`L buy a houso or osLabIish a farm.
You don`L know how Lho oIiLicaI ma wiII
Iook noxL yoar.`
His faLhor, a Loachor, cuILivaLod oIivo
Lroos and ownod a smaII businoss on Lho
sido soIIing oIivo oiI. Khanfar aLLondod
WE WERE STUNNED.
WADAH KHANFAR, THE DIRECTOR GENERAL OF AL
JAZEERA, DID NOT EXPECT TO SPEND THE EVENING
OF FEBRUARY 11TH SITTING WITH TWO COLLEAGUES
IN HIS OFFICE IN DOHA, QATAR, WATCHING EGYPTS
VICE PRESIDENT OMAR SULEIMAN ANNOUNCE THAT
PRESIDENT HOSNI MUBARAK WAS STEPPING DOWN.
IT WAS THE SHORTEST AND MOST IMPORTANT
SPEECH IN ARAB HISTORY, KHANFAR SAYS.
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LisLoning Lo Khanfar rocounL his Iifo sLory
is Iiko roading a caso sLudy of Lho various
ways Ioadors Lry Lo navigaLo chango.
Khanfar`s wandoring ovonLuaIIy Iod him
Lo journaIism. Ho had novor considorod iL
a rofossion, bocauso boing a journaIisL in
Lho MiddIo EasL ofLon moanL sorving Lho
govornmonL or ono of iLs agoncios. BuL, ho
says, AI Jazoora was somoLhing difforonL.`
Khanfar sLarLod as an on-air undiL for Lho
usLarL noLwork in 1,, osiLioning himsoIf
as an oxorL on African oIiLics. Soon, ho
was fiIing sLorios on hoaILh and oducaLion.
A ono-man sho, ho`d Lurn on his TV
camora using a romoLo conLroI, so ho couId
simuILanoousIy LaIk and fiIm himsoIf. Ho
sonL sovoraI yoars in Africa, roorLing on
LribaI Iifo and Lho cIashos in Zimbabwo.
AfLor ]11, Khanfar says, my Iifo was
inLorruLod`. Tho noLwork Lransforrod him
Lo AfghanisLan in Docombor 2uu1. On Lho
ovo of Lho Iraq war, ho smuggIod himsoIf
high schooI in an adjaconL Lown, waIking
Lho four miIos oach way or riding a
donkoy. Ho caIIs iL a simIo, boauLifuI
chiIdhood. Ho romombors IisLoning Lo
BBC Radio as his major sourco of nows.
DA:G?:KLI>GM his LwonLios LravoIIing
from ono LumuILuous oIiLicaI siLuaLion Lo
anoLhor. Ho moL his wifo aL a roLosL raIIy
aL Lho UnivorsiLy of Jordan. Thoy LravoIIod
LogoLhor Lo Sudan, whoro ho onroIIod in
an African SLudios graduaLo rogrammo
aL Lho momonL LhaL Army Brigadior
Omar Hassan Ahmod AI-Bashir bocamo
rosidonL. In 14, Khanfar arrivod
in SouLh Africa for anoLhor graduaLo
rogrammo as NoIson MandoIa Look owor
and Lho vosLigos of aarLhoid coIIasod.
ABSENT FROM ALMOST EVERY MAJOR CABLE SYSTEM
IN THE US, THE NETWORK HAS FOUND AN AUDIENCE
ONLINE, DEFTLY LEVERAGING TWITTER TO DRIVE TRAFFIC
TO THE AL JAZEERA ENGLISH WEBSITE. IT HAS BECOME
THE THIRD-MOST-POPULAR NEWS OUTLET ON YOUTUBE.
The Al Jazeera newsroom. The network has received international recognition for its
reporting on the Arab Spring.
32-37 Cover Story.indd 35 8/21/11 1:20:20 PM
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waLch him hockIo a visiLor from MiIan
abouL which farmors roduco Lho bosL
oIivo oiI, Lho ILaIians or Lho PaIosLinians.
In Lho middIo of a sorious discussion,
ho` II Lurn IayfuI, roforring Lo his ubIic-
roIaLions mindor as His RoyaI Highnoss`.
HG>MABG@ ho is dooIy sorious abouL
is buiIding Lho noLwork`s sociaI-modia
rosonco. Tho noLwork`s sovon-orson
sociaI-modia Loam - aII undor Lho ago of
32, soakors of Arabic, EngIish, Sanish,
PorLuguoso, Ironch, Turkish, DuLch,
Moroccan, Gorman and, as ono young
sLaffor says, various forms of sIang` - is
basod in a smaII boigo offico down a
haIIway. Thoir boss is 2,-yoar-oId Riyaad
MinLy, who drood ouL of univorsiLy in
SouLh Africa aL 18 Lo work for a mobiIo
markoLing sLarLu. Khanfar hirod him
in 2uu,, firsL Lo work on Lho noLwork`s
mobiIo rosonco and Lhon Lo hoad u iLs
sociaI-modia offorLs. SovoraI AI Jazoora
omIoyoos LoII mo Lhis is ono of Khanfar`s
bosL Ioadorshi LraiLs - hiring brighL
ooIo and giving Lhom IoLs of Iooway.
Liko many nows organisaLions, AI
Jazoora has goLLon sLory Ioads from omaiI,
TwiLLor and Iacobook for yoars, buL
noLhing Iiko Lho fIood of digiLaI maLoriaI
LhaL bogan sLroaming in afLor a Tunisian
fruiL soIIor soL himsoIf on firo in Docombor
2u1u, Lriggoring roLosLs LhaL Iod Lo Lho
faII of Lho Tunisian govornmonL. Tho
numbor of viowor-gonoraLod vidoos or
hoLos sonL Lo Lho noLwork jumod from
1u iocos of conLonL oach day Lo as many
as 1,4uu. AI Jazoora has boon abIo Lo goL
Lhoso imagos on Lho air in a moaningfuI
way bocauso Lho onIino Loam had aIroady
buiIL an inLornaI IaLform caIIod Sharok
(moaning 'arLiciaLo` or 'conLribuLo`)
LhaL mado iL oasy for viowors Lo submiL
conLonL. Tho sociaI-modia crow combs
Sharok oach day and sonds Lho nowsrooms
Lho bosL icLuros and vidoos.
IL was Lho young guys on Lho sLrooL
who rovidod us wiLh Lho icLuros and
voicos,` Khanfar says. Wo nood Lo ay
Lhom back.` Ho Ians Lo bring grous of 4u
inLo Lho Kurdish rogion of norLhorn Iraq.
WiLh Lho faII of Saddam Hussoin, ho
movod Lo Baghdad Lo hoad Lho noLwork`s
ooraLions, kicking off his managomonL
caroor and buiIding Lho buroau inLo AI
Jazoora`s IargosL fioId ooraLion boforo
going Lo Doha Lo join AI Jazoora`s
oxocuLivo Loam.
Evon now, ho Iovos noLhing moro Lhan
LaIking abouL oId-fashionod, mission-
drivon journaIism. On Lho finaI day of my
four-day visiL, jusL as I`m abouL Lo Ioavo
for Lho airorL, Khanfar makos a roomfuI
of ooIo waiL as ho onLificaLos on Lho
Al Jazeera reporter James Bays reports the news from Libya during a live shot
overlooking a square in Banghazi, Libya.
Former British Prime Minister Gordon Brown (L) walks with Wadah Khanfar (R), as he
arrives to visit the newsroom of the pan-Arab satelite channel in the Qatari capital, Doha.
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corrocL way Lo LoII a sLory. Onco you Iook
aL Lho scono and you soo Lho icLuro, you
sLarL wriLing Lho scriL in your hoad,` ho
LoIIs mo. You add somo words Lo iL, noL Loo
many words. A icLuro suorLod wiLh jusL
a IiLLIo biL of words - LhaL is magnificonL.`
Khanfar runs Lho noLwork wiLh a mix
of smarLs, ambiLion, and IayfuInoss.
Ono momonL, ho`s rofossoriaI in his
anaIysis of how various counLrios havo
handIod rogimo chango, siLLing back in
his chair and doIivoring fuIIy formod
aragrahs. Tho noxL, ho`s joking and
Iaughing. Ho` II Loaso aImosL anyono. I
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Lo u ciLizon journaIisLs across Lho MiddIo
EasL Lo QaLar for froo fivo-day Lraining.
AnoLhor 4uu wiII bo givon simIo vidoo
camoras. Tho hoo is LhaL somo wiII Lurn
inLo roguIar aid frooIancors. Tho noLwork
is Lrying Lo incororaLo aII kinds of sociaI
modia inLo iLs rogramming. Wo shouId
Lry ovory aLh Lo roach ouL Lo Lho ooIo,`
Khanfar says. WhaLovor aIicaLion brings
us Lo Lho ooIo, wo wiII do LhaL.`
On my socond Lo IasL day in QaLar,
Khanfar and I siL down Lo LaIk abouL Lho
chaIIongos ho facos as ho Lrios Lo mainLain
momonLum and buiId AI Jazoora inLo a
gIobaI nows owor. His air-condiLionod
offico fooIs Iiko a havon from Lho 24],
nows cycIo - oxcoL LhaL Lho fivo TV
scroons, oach ono Lunod Lo a difforonL
sLaLion, aro a sLark romindor LhaL AI
Jazoora`s ouIariLy couId bo fIooLing.
HG>H?his groaLosL disaoinLmonLs,
ho LoIIs mo, is his faiIuro Lo crack Lho
Amorican cabIo-LoIovision markoL. Sinco
iLs incoLion in 2uu6, AI Jazoora EngIish
has yoL Lo mako a singIo disLribuLion doaI
wiLh a major US cabIo comany. DosiLo
Lho aLLonLion AI Jazoora corrosondonLs
rocoivod for Lhoir fair, aggrossivo covorago
of Lho crisis in EgyL, you can`L waLch Lhom
on TV unIoss you Iivo in WashingLon, DC;
Cambridgo, MassachusoLLs; ToIodo, Ohio;
or BurIingLon, VormonL.
insLiLuLions and Ioadors. ConLros of
owor,` ho says, consisLonLIy Iio and Lry Lo
divorL your camora or your mossago. You
havo Lo LrusL Lho ooIo. Thoir inLuiLivo
sonso is much moro auLhonLic.`
BuL I ask: Aron`L you a conLro of
owor now?`
Khanfar Iaughs. Ho Iikos Lo bo
chaIIongod. Wo havo Lo bo quosLionod
Loo.` Good Ioadors nood Lo buiId
consonsus, ho says. IL wouId bo much
oasior Lo bo a dicLaLor.` Ho grins. BuL iL
doosn`L work.`
Sudanese Al Jazeera cameraman Sami
al-Haj (2nd-L) cuts a cake with Wadah
Khanfar (R) and its chairman Sheikh Hamad
bin Thamer al-Thani (L).
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Khanfar undorsLands LhaL ho`s ooraLing
in an Amorican oIiLicaI onvironmonL so
chargod LhaL Iox Nows hosL Soan HanniLy
onco ridicuIod anchor SLuarL Varnoy on
air for woaring a yoIIow aLLornod Lio LhaL
vaguoIy rosombIod AI Jazoora`s Iogo. Wo
havo Lo rovo our innoconco,` Khanfar
says. Wo aro noL Lho Osama bin Ladon
channoI. You can havo nows from aII ovor
Lho worId in a rofossionaI way.`
To minimiso foars abouL iLs aims
and broadon iLs aoaI Lo a divorso
inLornaLionaI audionco, Khanfar is Lrying
Lo comonL AI Jazoora EngIish`s aoaI
noL jusL in Lho US and Lho UK buL aIso
in India, Nigoria, SouLh Africa, and Lho
PhiIiinos. Tho Ian moving forward
is Lo covor univorsaI issuos such as Lho
omorging gIobaI middIo cIass, or EngIish
soakors` viows of oIiLics in Lho Arab
worId. In shorL, AI Jazoora EngIish wanLs
Lo covor inLornaLionaI nows in a broad,
sohisLicaLod way LhaL fow US nows
noLworks can maLch wiLh Lhoir roducod
budgoLs. (AI Jazoora has Lho bonofiL of
QaLari govornmonL cash. Khanfar says
Lho noLwork IosL much moro` Lhan
$8u miIIion IasL yoar.)
DosiLo iLs financiaI doondonco,
Khanfar says Lho noLwork`s onIy bias is
Loward covoring ordinary ooIo and
Lho burgooning domocraLic rocoss in
Lho Arab worId, and sLanding u Lo
AL JAZEERA HAS BEEN
ABLE TO GET THESE
IMAGES ON THE AIR IN A
MEANINGFUL WAY BECAUSE
THE ONLINE TEAM HAD
ALREADY BUILT AN INTERNAL
PLATFORM CALLED SHAREK
(MEANING PARTICIPATE OR
CONTRIBUTE) THAT MADE
IT EASY FOR VIEWERS TO
SUBMIT CONTENT.
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THE FADING DREAM
Homeownership is entrenched in British culture, but
larger deposits and tighter credit mean that many
young people are forced to live as generation rent,
reports Julia Werdigier.
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of young aduILs in BriLain,
homoownorshi has bocomo
incroasingIy difficuIL Lo achiovo, viowod as a
disLanL goaI aLLainabIo onIy IaLor in Iifo, if aL
aII. ThaL is a significanL shifL for a counLry
whoro owning a homo romains dooIy
rooLod in Lho cuILuro. Ownors occuy a
highor orconLago of homos in BriLain Lhan
in Lho UniLod SLaLos, Iranco or Gormany.
BuL as Lho ain of govornmonL-imosod
ausLoriLy sinks in, disosabIo incomo
has shrunk and Ioan roquiromonLs havo
Loughonod, forcing moro and moro BriLons
inLo ronLing raLhor Lhan buying.
Tho avorago ago of firsL-Limo buyors
is now 31, u from 28 fivo yoars ago,
and Lho numbor of ooIo ronLing has
incroasod sharIy, signs LhaL Lho boom
in homoownorshi LhaL bogan undor
MargaroL ThaLchor`s govornmonL 3u yoars
ago is sLarLing Lo rovorso.
Somo oconomisLs aro concornod LhaL
as moro ooIo aro forcod Lo waiL Lo buy
a homo, Lho counLry`s woaILh ga couId
widon, ondangoring Lho roLiromonL
rosocLs for a swoIIing grou of young
aduILs Lhoy caII gonoraLion ronL`.

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CharIoLLo AshLon, 3u, has Iivod in ronLod
accommodaLions sinco sho IofL hor aronL`s
homo Lo aLLond a univorsiLy. Sho said sho
was hay sharing a fivo-bodroom houso in
Lho Shohords Bush aroa of London wiLh
four oLhor womon buL was saving for a
down aymonL Lo buy hor own homo.
I do boIiovo in Lho fundamonLaIs of
owning bricks and morLar as socuriLy for
Lho fuLuro, moro Lhan Ioaving my monoy
in Lho banks aL a Iow inLorosL raLo,` said
AshLon, who works in ubIic roIaLions.
UnIoss you havo a vory woII-aid job
and aro wiIIing Lo savo ovory onny, iL`s
unfoasibIo Lo buy wiLhouL Lho hoI of Lho
bank of Mum and Dad.`
AbouL four yoars ago, a firsL-Limo buyor
had Lo raiso an avorago down aymonL
oquaI Lo 41 or conL of annuaI incomo Lo
buy a roorLy, according Lo Lho CounciI
of MorLgago Londors. Now iL is moro Lhan
8, or conL of incomo, or abouL |26,uu
ounds ($42,8uu). And whiIo banks
woro wiIIing Lo mako morLgago Ioans for
moro Lhan Lho vaIuo of Lho houso boforo
Lho crodiL crisis, buyors now find Lhoy
musL uL u aL IoasL 1u or conL, and
ofLon subsLanLiaIIy moro. (Tho avorago
doosiL for firsL-Limo buyors is 23 or conL,
according Lo Lho rico comarison wobsiLo
MonoysuormarkoL).
A sLudy by HaIifax, a BriLish morLgago
Iondor, showod in May LhaL whiIo ,, or
conL of 2u- Lo 4-yoar-oIds who woro
ronLing wouId Iiko Lo buy a homo, moro
Lhan Lwo-Lhirds boIiovod Lhoy had no
rosocL of doing so. OnIy fivo or conL
said Lhoy woro managing Lo savo Loward
a doosiL.
Thoso who do savo, Iiko AshLon, who
has soL asido Lho oquivaIonL of abouL
$u,uuu, aro unIikoIy Lo bo abIo Lo afford
a homo in Lho samo aroa Lhoy ronL in. I
With tighter banking lending
and higher rents, first-time
buyers in Britain are finding it
much harder to save money
and purchase a home.
38-40 Housing Rent.indd 38 8/21/11 1:21:37 PM
September 2011
39
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wouId havo Lo Iook furLhor ouL of London
or for a smaIIor roorLy,` sho said. So for
now, Iiko many, sho is sLaying uL.
Ono roason homoownorshi romains
aLLracLivo in BriLain is bocauso roorLy
vaIuos drood Ioss drasLicaIIy Lhan in
Lho UniLod SLaLos, in arL bocauso of
a shorLago in housing. Pricos in somo
Iargo ciLios, incIuding London, havo ovon
incroasod roconLIy. PooIo sLiII orcoivo a
homo Lo bo a boLLor and safor invosLmonL
Lhan a onsion fund, said Androw HuII,
rosoarch foIIow aL Lho InsLiLuLo for PubIic
PoIicy Rosoarch. Homoownorshi is aIso
cuILuraIIy onLronchod,` ho said. Owning
a homo is Lho main way of showing you
mado iL.`
MA>;B@ shifL Loward homoownorshi
camo in Lho 18us wiLh ThaLchor`s righL-Lo-
buy oIicy, which aIIowod many in ronLod
govornmonL housing Lo buy Lhoir homos.
AbouL Lwo miIIion homos woro soId, oarning
Lho govornmonL Lons of biIIions of ounds.
AL Lho samo Limo, Lho ronLaI markoL
bocamo incroasingIy unaLLracLivo. UnIiko
Gormany and oLhor conLinonLaI Eurooan
counLrios, BriLain`s rivaLo ronLaI markoL
is highIy fragmonLod, wiLh many IandIords
and Iaws LhaL gonoraIIy favour Lho roorLy
ownor. MosL Ioasos aro for six monLhs
onIy, wiLh IandIords raroIy agrooing Lo
commiL Lo Iongor Lorms; Lhis makos ronLing
highIy insocuro.
BuL Lho afLormaLh of Lho banking crisis
and Lho rocossion mado buying moro
difficuIL. Ovor Lho asL 1u yoars Lho numbor
of ooIo who ownod homos horo drood
Lo 6, or conL from ,u or conL. MoanwhiIo,
Lho numbor of ooIo in rivaLo ronLod
housing roso Lo 16 or conL from 1u or
conL ovor Lho samo oriod, according Lo Lho
Offico for NaLionaI SLaLisLics.
A growing numbor of young wouId-
bo buyors aro roaring for IifoIong
39
38-40 Housing Rent.indd 39 8/21/11 1:21:38 PM
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ronLing - by nocossiLy raLhor Lhan
choico,` said JonaLhan Mooro, dirocLor of
oasyroommaLo.co.uk, a roorLy wobsiLo.
KaLhorino Iyfo is ono of Lhom. Iyfo, a
42-yoar-oId cIinicaI sysLoms Loachor for
Lho NaLionaI HoaILh Sorvico in Dovon,
is oagor Lo buy hor own Iaco, buL hor
|1,uuu in savings is noL onough. I`vo
boon cIawing monoy LogoLhor sinco my
divorco in 2uu8, buL iL`s noL boon oasy as
Lho cosL of ronL has biLLon inLo mosL of
my ay,` sho said. Sho ays |38u a monLh
for a room in a houso in ExoLor LhaL sho
sharos wiLh Lwo oLhors.
Rising domand has ushod u ronLs by
socioLy as a whoIo.
IL couId oon u a widoning of Lho
woaILh ga LhaL aIroady oxisLs boLwoon
homoownors and non-homoownors, and
ooIo in 'gonoraLion ronL` risk insufficionL
financos aL roLiromonL,` AIison BIackwoII,
a rosoarch dirocLor aL Lho NaLionaI ConLro
for SociaI Rosoarch and auLhor of Lho
HaIifax roorL, said.
IL couId aIso havo imIicaLions for Lho
cohosion of noighbourhoods, sho said.
RonLors Lond Lo bo Ioss invoIvod in IocaI
communiLios bocauso Lhoy aro forcod Lo
movo moro ofLon. And Lho oconomy as a
whoIo may suffor bocauso ronLors Lond Lo
curb sonding Lo savo for a doosiL.
Ior somo, incIuding AshLon, Lho
rosocL of buying in BriLain sooms so
daunLing LhaL sho ovon considorod buying
a roorLy oIsowhoro. I don`L ruIo ouL
buying abroad,` sho said. Thoro aro many
moro aoaIing markoLs Lhan BriLain.
IIorida, for oxamIo.`
Charlotte Ashton, who rents a house
with four other people and is saving
to buy one, left, at her birthday
party at home in London.
an avorago of 4.4 or conL ovor Lho asL
yoar, according Lo LSL ProorLy Sorvicos.
In London ronLs incroasod ,.8 or conL.
Boing unabIo Lo buy a homo is jusL
Lho IaLosL bIow for a BriLish ouIaco
aIroady baLLorod by sovoro ausLoriLy
and conLracLion. To roduco dobL, Lho
govornmonL is cuLLing onsions, woIfaro
sonding and ubIic sorvicos, and has
said iL wiII oIiminaLo 31u,uuu ubIic-
socLor jobs by 2u1.
:FB=MABL oconomic hardshi, somo
anaIysLs warn LhaL a widor shifL Loward
ronLing couId havo advorso offocLs on
Renters tend to be less involved in local
communities because they are forced to move
more often. And the economy as a whole may
suffer because renters tend to curb spending to
save for a deposit.
38-40 Housing Rent.indd 40 8/21/11 1:21:41 PM
Hand-wound in-line movement, 18K red
gold case set with diamonds. Sapphire
crystal sides and back.
Hand-engraved gold CORUM baguette-
shaped movement
www.corum.ch
2980-PORTOFOLIO_GB09-MISSGB_206x270.indd 1 13.07.11 14:04
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ICON
Harley-Davidson motorcycles are an extension of the American
dream that resonates globally. Mark-Hans Richer, the Senior Vice
President and Chief Marketing Officer of the Harley-Davidson Motor
Company, outlines the road ahead, to Guido Duken.
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A>K>LGHLAHKM:@>H?
insLanLIy rocognisabIo gIobaI
brands, buL onIy a fow can
bo caIIod iconic. HarIoy-Davidson is
dofiniLoIy a mombor of Lhis oIiLo cIub as
Lho brand is dooIy onLronchod in ouIar
cuILuro and is as rorosonLaLivo of Amorica
as basobaII and aIo io. ThaL is a facL
LhaL Mark-Hans Richor, Lho Sonior Vico
ProsidonL and Chiof MarkoLing Officor of
Lho HarIoy-Davidson MoLor Comany, is
woII awaro of. Ior many ooIo around
Lho worId HarIoy-Davidson rorosonLs
Lho univorsaI idoaIs of soIf-oxrossion,
boIdnoss and a sonso of communiLy,`
oxIains Richor. Our cusLomors LoII us
LhaL owning a HarIoy-Davidson is Lho
oxorionco of a IifoLimo; LhaL words aIono
cannoL arLicuIaLo Lho fuII HarIoy-Davidson
oxorionco. BuL you know iL whon you uL
on LhaL jackoL, roII Lho LhroLLIo, hoar LhaL
unmisLakabIo rumbIo and go.`
In facL, Lho rumbIo of HarIoy-Davidson
moLorcycIos is so uniquo LhaL aL ono
oinL Lho comany was Lhinking of

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Lradomarking Lho sound, aILhough
whoLhor iL wouId havo goLLon iL righL is
oon Lo dobaLo. UILimaLoIy,` says Richor,
HarIoy-Davidson choso noL Lo Lradomark
Lho uniquo sound of iLs onginos.`
CIoarIy HarIoy-Davidson soIIs noL
jusL moLorcycIos, buL aIso a IifosLyIo.
And arL of LhaL IifosLyIo is accossorios
such as cIoLhing. According Lo Richor,
morchandiso and aaroI aro a koy arL
of Lho HarIoy-Davidson oxorionco (Tho
HarIoy-Davidson bIack IoaLhor jackoL
is synonymous wiLh our moLorcycIos`)
buL Lho buIk of Lho comany`s rovonuo
comos from moLorcycIo saIos. In 2u1u,`
oxIains Richor, GonoraI morchandiso
(morchandiso and aaroI) mado u jusL
ovor six or conL of HarIoy-Davidson
MoLor Comany`s rovonuo whiIo
moLorcycIo saIos mado u ,6 or conL,
and arLs and accossorios mado u Lho
romaining 18 or conL.`
BuL noL ovon an iconic brand is immuno
Lo Lho vagarios of Lho gIobaI oconomy,
as Lho 2uu8 financiaI crisis rovod. As
consumors scaIod back on sonding,
many comanios saw saIos IummoL and
HarIoy-Davidson was no oxcoLion. KoiLh
WandoII, Lho ProsidonL and CEO of Lho
HarIoy-Davidson MoLor Comany, issuod
a cauLious ouLIook afLor roorLing Lho firsL
quarLor rosuILs of 2u11, aILhough oarnings
or sharo woro u , or conL from Lho yoar
ago oriod. According Lo Richor, Lho IaLosL
figuros aro conLinuing a osiLivo Lrond.
Ior Lho firsL haIf of 2u11, roLaiI HarIoy-
Davidson moLorcycIo saIos grow 4.8 or
conL worIdwido and 4.4 or conL in Lho US
as comarod Lo Lho samo oriod in 2u1u.`
WandoII was aIso uboaL whon ho
roIoasod Lho socond quarLor oarnings on
JuIy 1. HarIoy-Davidson conLinuos Lo
mako groaL rogross as wo Lransform our
businoss and Lako our iconic brand Lo Lho
many roads of Lho worId. Wo aIso boIiovo
Lho conLinuod imrovomonL in our rosuILs
in Lho faco of ongoing consumor and
oconomic uncorLainLy soaks Lo Lho owor
of Lho HarIoy-Davidson brand gIobaIIy.`
AILhough HarIoy-Davidson`s figuros
42-45 Profile.indd 42 8/21/11 1:23:12 PM
September 2011
CMYK
Mark-Hans Richer is
upbeat about Harley-
Davidson's future thanks to
growing global sales, the
introduction of new models,
and the companys iconic
brand status.
43
42-45 Profile.indd 43 8/21/11 1:23:14 PM
Portfolio
CMYK
44
aro showing an uward LrajocLory, saIos
havon`L yoL roLurnod Lo Lho hoighLs boforo
Lho financiaI crisis. In 2uu, Lho comany
shiod 3u,uuu bikos, whiIo Lhis yoar Lho
forocasL is 21,uuu Lo 228,uuu, mainIy
bocauso Lho US markoL is sLiII fairIy fIaL.
Doos LhaL moan LhaL HarIoy-Davidson,
Iiko many oLhor comanios, is incroasingIy
focusing on Lho gIobaI markoL?
Tho comany oxocLs iLs inLornaLionaI
moLorcycIo saIos Lo incroaso fasLor Lhan iLs
domosLic US saIos and is imIomonLing
Lho LransformaLion Lo hoI LhaL haon,`
says Richor. Ior oxamIo, iL roconLIy
oonod rogionaI hoadquarLors in Singaoro
for Asia Pacific, and in Miami for LaLin
Richor, HarIoy-Davidson cusLomors aro
uniLod by a common dosiro Lo ursuo Lho
idoaIs of soIf-oxrossion and individuaIiLy,
which in Lurn doLorminos saIos sLraLogy.
Our goaI is Lo offor a roducL Iino LhaL
hoIs Lhom ursuo Lhoso idoaIs in Lho
counLrios LhaL mako u Lho MiddIo
EasL and in ovory counLry whoro wo do
businoss (curronLIy ,, counLrios), from
moLorcycIos Lo aaroI, morchandiso and
accossorios,` says Richor.
Ono domograhic LhaL is ossonLiaI Lo
HarIoy-Davidson`s growLh Ians is young
aduILs, osociaIIy womon. Tho quosLion
is how you LargoL Lhis grou wiLhouL
aIionaLing Lho oxisLing cusLomor baso.
Tho ossonLiaI Iook, sound and fooI of
a HarIoy-Davidson moLorcycIo havo a
common aoaI across gonoraLions and
cuILuros,` oxIains Richor. ObviousIy
sLyIos chango, LasLos chango, buL
auLhonLiciLy is Lho baso wo buiId uon.
Wo inLroducod our Dark CusLom
Iino of moLorcycIos in oarIy 2uu8 - vory
sLriod down, bIack, vory IiLLIo chromo
Amorica. Thoso hoadquarLors aIIow us
Lo bo cIosor Lo our cusLomors in Lhoso
rogions boLh hysicaIIy and cuILuraIIy.`
Tho comany oxocLs LhaL 4u or conL of
iLs saIos wiII como from ouLsido Lho US by
2u14, and saIos in growLh markoLs such as
China, India, BraziI and oLhors wiII bo an
imorLanL arL of LhaL mix.
@EH;:EER%A:KE>R-Davidson saIos
may bo u 4.8 or conL, buL in Lho MiddIo
EasL iL has boon cIosor Lo 1 or conL. ThaL
bogs Lho quosLion whoLhor MiddIo EasLorn
cusLomors aro difforonL from oLhor
counLrios and if Lho comany has sociaI
Ians Lo LargoL Lho rogion. According Lo
Harley-Davidsons worldwide sales rose by 4.8 per cent in 2011 compared year-on-year, but sales are still below 2007 figures.
The company recently opened regional
headquarters in Singapore for Asia Pacific, and
in Miami for Latin America. These headquarters
allow us to be closer to our customers in those
regions both physically and culturally.
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September 2011
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Harley-Davidson bikes reflect current styles and tastes, but authenticity remains the
underlying brand value.
Mark-Hans Richer with model Marisa
Miller attend the Harley-Davidson
Evolution of an Icon event.
HarIoy-Davidson, wo don`L Lhink quarLor
Lo quarLor, so I Iiko Lho quosLion,` says
Richor. In 1u yoars wo` II bo cIoso Lo our
12uLh annivorsary, and I fuIIy oxocL wo` II
bo coIobraLing wiLh cusLomors in ovor 1uu
counLrios and riding many roads whoro
you don`L LyicaIIy soo HarIoy-Davidson
moLorcycIos Loday. Ior insLanco, a fow of
us from HarIoy roconLIy rodo moLorcycIos
from DoIhi Lo Lho Taj MahaI. A grou of
HarIoys aL Lho Taj MahaI was a sighL many
had novor soon boforo and Lhoro wiII bo
moro surrisos, boLh in whoro wo show u
and whaL wo show u riding on.`
Doos LhaL moan wo can Iook forward
Lo woIcoming him in Dubai soon? I Iovo
goLLing inLroducod Lo difforonL cuILuros
and ooIos, buL am sorry Lo say I havo
noL yoL visiLod Dubai,` says Richor.
Evoryono I know who has boon Lhoro
Iovos iL and has groaL Lhings Lo say, so iL
is dofiniLoIy on my IisL!`
- which somo mighL havo soon as a roLro,
oId schooI aoaI, buL Lhoy hoIod mako
us Lho numbor ono soIIor of moLorcycIos
Lo young aduILs in Lho US,` says Richor.
As for womon, wo havo inLroducod bikos
Iiko Lho SuorLow, a fun biko wiLh a Iowor
soaL hoighL and oasy handIing, which has
bocomo our bosL soIIor Lo womon.`
Richor, howovor, isn`L koon Lo singIo
ouL any domograhic as having Lho
mosL growLh oLonLiaI for Lho comany.
HonosLIy, givon Lho broad aoaI of Lho
siriL of HarIoy-Davidson aII around Lho
worId, Lhoro aro vory fow domograhics
whoro wo don`L soo growLh oLonLiaI.
GranLod, noL ovoryono has Lho droam
Lo rido a moLorcycIo, buL for Lhoso who
do - rogardIoss of gondor, ago, incomo or
IocaLion - mosL soo HarIoy-Davidson as
asiraLionaI and arL of LhaL droam.`
No comany goLs ahoad wiLhouL boing
innovaLivo and inLroducing now roducLs.
According Lo Richor Lho comany has
somo oxciLing moLorcycIos` in Lho
roducL dovoIomonL ioIino. Ior us iL`s
aIways a baIanco boLwoon whaL koos us
Lruo Lo our brand and Lhon oxands iL Lo
now audioncos.`
HG>MABG@ LhaL HarIoy-Davidson has
aIways boon known for is cusLomisaLion.
This yoar Lho comany is Laking iL
ono sLo furLhor by inLroducing a now
indusLry sLandard caIIod H-D 1 facLory
cusLomisaLion. IL aIIows a cusLomor Lo go
onIino, soIocL from Lhousands of difforonL
combinaLions of accossorios and sLyIos on
Lho now 12uu CusLom, and goL iL buiIL in
Lho facLory and doIivorod in around Lhroo
wooks. Whon LhaL is combinod wiLh whaL
can bo accossorisod aL Lho doaIorshi, iL`s
aImosL Iiko oach biko is a cusLom of ono,`
says Richor. ThaL`s whoro wo, and Lho
worId, aro going.`
KoiLh WandoII, Lho comany`s CEO, is
focusod on a Iong-Lorm sLraLogy for HarIoy
Davidson. So whoro wouId Richor Iiko Lo
soo Lho comany in fivo Lo 1u yoars? AL
Merchandise and apparel made up just over six per cent of Harley-Davidsons revenue
in 2010.
42-45 Profile.indd 45 8/21/11 1:23:31 PM
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The American Treasury seems to be printing less dollars
every year. Does that mean the end of cash is nigh?
Not yet, reports Binyamin Appelbaum.
The Reign of
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There is no definitive data on all of this. Cash
transactions are notoriously hard to track, in part
because people use cash when they do not want
to be tracked.
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biIIs roIIing off Lho groaL
US govornmonL rossos in
WashingLon and IorL WorLh, Toxas,
foII Lo a modorn Iow IasL yoar. ProducLion
of $ biIIs aIso drood Lo Lho IowosL IovoI
in 3u yoars. And for Lho firsL Limo in LhaL
oriod, Lho Troasury DoarLmonL did noL
rinL any $1u biIIs.
Tho moaning sooms cIoar. Tho fuLuro
is horo. Cash is in docIino.
You can`L uso iL for onIino urchasos,
nor on many airIanos Lo buy snacks or
duLy-froo goods. LasL yoar, 36 or conL
of Laxi faros in Now York woro aid wiLh
IasLic. AL Commorco, a rosLauranL in
ManhaLLan, Lho bar monus road, CrodiL
cards onIy. No cash Ioaso. Thank you.`
Thoro is no dofiniLivo daLa on aII of
Lhis. Cash LransacLions aro noLoriousIy
hard Lo Lrack, in arL bocauso ooIo
uso cash whon Lhoy do noL wanL
Lo bo Lrackod. BuL a simIo raLio is
iIIuminaLing. In 1,u, aL Lho dawn of
IasLic aymonL, Lho vaIuo of US curroncy
in domosLic circuIaLion oquaIIod abouL
fivo or conL of Lho naLion`s oconomic
acLiviLy. LasL yoar, Lho vaIuo of curroncy
in domosLic circuIaLion oquaIIod abouL
2. or conL of oconomic acLiviLy.
This morning I boughL a gaIIon
of miIk for $2.u aL a MobiI sLaLion,
and I aid wiLh my crodiL card,` said
Tony ZazuIa, co-ownor of Commorco
rosLauranL, whiIo LravoIIing in usLaLo
Now York. I do carry a IiLLIo cash, buL
onIy for graLuiLios.`
IL is oasy Lo Iook down Lho sIoo of
Lhis Lrond and rodicL Lho ond of aor
curroncy. Easy, buL robabIy wrong. MosL
Amoricans rofor Lo uso cash aL IoasL somo
of Lho Limo, and ovon Lhoso who do noL,
Iiko ZazuIa, concodo LhaL Lhoy cannoL Iivo
wiLhouL iL.
<NKK>G<RK>F:BGL Lho bosL
avaiIabIo LochnoIogy for aying baby
siLLors and Liing boIIhos. Many
smaII businossos - osLimaLos rango
from ono-Lhird Lo haIf - won`L accoL
IasLic. And criminaIs rofor cash. Jamos
'WhiLoy` BuIgor, Lho BosLon gangsLor
who Iivod in SanLa Monica, CaIifornia,
for 1 yoars, aid his ronL in cash and
sLashod Lhousands of doIIars in his
aarLmonL waIIs.
Indood, cash romains so orvasivo,
and Lho aco of chango so sIow, LhaL
Ron ShovIin, an anaIysL wiLh Lho BosLon
rosoarch firm AiLo Grou, roconLIy
caIcuIaLod LhaL Amoricans wouId sLiII
bo using aor curroncy in 2uu yoars.
Cash works for us,` ShovIin said. Tho
downward Lrond is cIoar, buL chango
advocaLos aIways ovorosLimaLo how
quickIy Lhoso Lhings wiII haon.`
ProducLion of aor curroncy is
docIining much moro quickIy Lhan acLuaI
curroncy uso bocauso Lho biIIs aro IasLing
Iongor. Thanks Lo LochnoIogicaI advancos,
Lho avorago doIIar biII now circuIaLos
for 4u monLhs, u from 18 monLhs Lwo
docados ago, according Lo IodoraI Rosorvo
osLimaLos. Banks roguIarIy sond sLacks of
oId noLos Lo Lho Iod, which roIacos Lho
damagod onos. UnLiI roconLIy, noLos woro
September 2011
46-49 Currency.indd 47 8/21/11 12:06:25 PM
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simIy sLackod facodown and dosLroyod,
as woro dog-oarod noLos, bocauso Lho Iod`s
scanning oquimonL couId noL disLinguish
boLwoon croasos and Loars. Now iL can.
In 18, Lho Iod roIacod 46 or conL of
roLurnod doIIar biIIs. LasL yoar iL roIacod
21 or conL. Tho rosL of Lho noLos woro
roLurnod Lo circuIaLion whoro Lhoy may
Ioad Iongor Iivos bocauso Lhoy aro boing
usod Ioss ofLon.
Tho fuLurisLs who havo Iong
rodicLod Lho ond of aor monoy aIso
undorosLimaLod Lho riso of Lho $1uu biII
as ono of Amorica`s mosL ouIar oxorLs.
?HKMPH docados, sinco Lho faII of Lho
SovioL Union, domand has oxIodod for
Lho $1uu biII, which is hoardod Iiko goId
in unsLabIo Iacos. LasL yoar Lho Troasury
rinLod moro $1uu biIIs Lhan doIIar biIIs
for Lho firsL Limo. Thoro aro now moro
Lhan sovon biIIion icLuros of Bonjamin
IrankIin in circuIaLion - and Lho IodoraI
Rosorvo`s bosL guoss is LhaL Lwo-Lhirds
aro hoId by foroignors. US soIdiors
soarching ono of Saddam Hussoin`s aIacos
in 2uu3 found abouL $6u miIIion in frosh
$1uu biIIs.
This is vory rofiLabIo for Lho UniLod
SLaLos. Curroncy is rinLod by Lho
Troasury and issuod by Lho IodoraI
Rosorvo. Tho conLraI bank ays Lho
Troasury for Lho cosL of roducLion -
abouL 1u conLs a noLo - Lhon oxchangos
Lho noLos aL faco vaIuo for socuriLios LhaL
ay inLorosL. Tho moro monoy iL issuos,
Commerce, a restaurant in New York, accepts credit cards only.
It may be the only restaurant in the US that does not accept cash.
The futurists
who have long
predicted the end
of paper money
also underestimated
the rise of the
$100 bill as one
of Americas most
popular exports.
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Treasury worker John Guy, left, organises a
stack of new $50 bills at the printing facility
in Fort Worth, Texas. Production of dollar
bills, except $100 notes, has been declining.
New bills ready for circulation. It is
estimated that Americans will be using
cash for at least another 200 years.
Lho moro inLorosL iL oarns. And oach yoar
Lho Iod roLurns Lo Lho Troasury a windfaII
caIIod a soigniorago aymonL, which IasL
yoar oxcoodod $2u biIIion.
To mooL foroign domand, Lho Iod
has Iiconsod banks Lo ooraLo curroncy
disLribuLion warohousos in London,
IrankfurL, Singaoro and oLhor financiaI
conLros. In March, IargoIy bocauso of Lho
boom in $1uu noLos, Lho vaIuo of aII US
noLos in circuIaLion Lood $1 LriIIion for
Lho firsL Limo.
BGMA> UniLod SLaLos, rosoarch suggosLs
LhaL Lho sroad of oIocLronic aymonL
LochnoIogios is sLoadiIy roducing Lho
sharo of aymonLs mado in cash. Drivors
uso E-Z Pass aL LoII Iazas for roads and
bridgos. CommuLors swio sLorod-vaIuo
cards aL LurnsLiIos. ChrisLmas sLockings
aro sLuffod wiLh gifL cards.
ZazuIa, Lho rosLauraLour, mado his
docision in 2uu, insirod by a fIighL
on Amorican AirIinos, which had jusL
inLroducod a no-cash oIicy. Ho said LhaL
8 or conL of his cusLomors aIroady aid
wiLh crodiL cards, and Laking cash Lo and
from Lho bank was a nuisanco and socuriLy
risk. Two yoars IaLor, ZazuIa said ho had no
rogroLs. You sLiII havo somo ooIo LhaL
aro ouLragod LhaL wo won`L accoL cash,` ho
said, buL mosL of iL is a show bocauso Lhoy
ond u having a crodiL card.`
BuL Commorco romains a rariLy.
ExorLs on aymonLs cannoL namo
anoLhor no-cash rosLauranL. Sna, a caf
in Lho GoorgoLown noighbourhood of
WashingLon, rojocLod cash in 2uu6, Lhon
rovorsod Lho oIicy a fow yoars IaLor.
Businossos aro noL roquirod Lo Lako
cash. Tho famous hraso IogaI Londor for
aII dobLs` moans LhaL Iondors - and onIy
Iondors - aro roquirod Lo accoL Lho biIIs.
BuL mosL morchanLs don`L soo Lho oinL
in frusLraLing cusLomors. IL`s a rariLy for
a roLaiIor of any sizo Lo go cash onIy, and
iL`s a rariLy Lo docIino Lo accoL cash aL aII,`
said Brian Dodgo of Lho RoLaiI IndusLry
Loadors AssociaLion, a Lrado grou.
Evon Lho financiaI indusLry, which has
romoLod Lho sroad of oIocLronic aymonLs,
has movod away from grand rodicLions.
Thoro`s aIways going Lo bo somo
ooIo, for good or nofarious roasons, who
wanL Lo uso cash,` said Doug Johnson, vico
rosidonL for risk managomonL oIicy aL
Lho Amorican Bankors AssociaLion. I`m
gIad I had iL yosLorday. I bIow ouL a fan
boIL on my car, and iL`s nico Lo bo abIo Lo
givo Lho Low drivor a LwonLy.`
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room furnishings, doIicaLo fingor foods
and 'sood noLworking` sossions aL Lho
fivo-sLar Jumoirah CarILon Towor hoLoI
in KnighLsbridgo, London, aro jusL whaL
you wouId oxocL from an oiI indusLry
goL-LogoLhor. BuL Lho faux Iooard-skin
chairs and radiaLors boILing ouL hoaL fooI
aL odds wiLh Lho discussion abouL Lho
ico and snow-bound ArcLic, Lho IaLosL
hydrocarbon 'fronLior`.
Thoro is corLainIy a warm gIow of
oxciLomonL among invosLors in Lho room
whon oiI oxIoror, Miko WaLLs, Lakos
Lho odium aL Lho ovonL, biIIod as an 'oiI
and gas ouLIook ArcLic day`. Tho man in
a Lradomark CiLy whiLo shirL and sobor
Lio is Lho douLy chiof oxocuLivo of Cairn
Enorgy, Lho ScoLLish comany aL Lho
oiconLro of Lho now oiI rush.
GroonIand has boon Iacod on Lho
gIobaI oiI ma IargoIy Lhrough Cairn`s
announcomonL abouL Lho 'discovory` of
hydrocarbons IasL summor. And WaLLs
is quick Lo raLLIo off Lho osiLivos: Lho
rogion`s zoro` oIiLicaI risk and vory
IiLLIo` commorciaI risk. Tho Cairn
oxocuLivo favourabIy comaros Lho
oorLuniLios avaiIabIo off GroonIand
wiLh oLhor aroas which iL has Iookod aL
- incIuding Iraq (no LochnicaI risk buL
IonLy of oIiLicaI risk`).
Tho scoo for ArcLic succoss is
immonso, ho LoId Lho mooLing IasL
Novombor, givon uboaL assossmonLs on
oLonLiaI rosorvos from organisaLions such
as Lho US GooIogicaI Survoy (USGS).
A roorL comIoLod in 2uu8 by USGS
arguod LhaL aImosL ono-quarLor of Lho
undiscovorod, LochnicaIIy rocovorabIo,
hydrocarbons in Lho worId may bo
conLainod in an aroa norLh of Lho
ArcLic CircIo. This - in numoricaI
Lorms - amounLs Lo u biIIion barroIs
of undiscovorod, LochnicaIIy rocovorabIo
oiI, 1,6,u LriIIion cubic fooL of LochnicaIIy
rocovorabIo naLuraI gas, and 44 biIIion
barroIs of LochnicaIIy rocovorabIo naLuraI
Oil companies and governments are looking north to the Arctic as prices rise and
energy security fears grow. But the hostile conditions make drilling difficult, and
environmental groups are warning of a potential disaster, reports Terry Macallister.
ARCTIC OIL RUSH
50
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The Arctic accounts for around 13 per cent of the
undiscovered oil, 30 per cent of the undiscovered
natural gas, and 20 per cent of the undiscovered
natural gas liquids in the world.
gas Iiquids in 2 gooIogicaIIy dofinod aroas
LhoughL Lo havo oLonLiaI for oLroIoum.
ThaL wouId moan Lho ArcLic accounLs
for around 13 or conL of Lho undiscovorod
oiI, 3u or conL of Lho undiscovorod
naLuraI gas, and 2u or conL of Lho
undiscovorod naLuraI gas Iiquids in Lho
worId. AbouL 84 or conL of Lho osLimaLod
rosourcos aro oxocLod Lo occur offshoro,
says Lho USGS in figuros which Lho
Russians arguo hugoIy undorosLimaLo Lho
conLribuLion from Lhoir conLinonLaI shoIf.
>QMK:<MBG@MA>L> hydrocarbons
wouId bo hugoIy oxonsivo using
convonLionaI moans, buL oiI comanios
such as ShoII aro now buiIding fIoaLing
Iiquofiod naLuraI gas roducLion sysLoms
which wouId roduco cosLs. BuL ovon high
oxLracLion cosLs can bo oconomicaIIy viabIo
bocauso of Lho soaring vaIuo of fuoI.
Tho rico of crudo has rison - from
boIow $1u or barroI baroIy a docado ago
Lo a curronL IovoI of boLwoon $8u Lo $11u
wiLh rodicLions iL couId doubIo again in
Lho coming yoars, making oxIoraLion a
highIy aLLracLivo businoss.
DosiLo concorns abouL cIimaLo
chango, Lhoro is sLiII rising domand for
oLroI and acrimonious dobaLo abouL
fuLuro fuoI shorLagos and whoLhor Lho
worId has aIroady roachod 'oak oiI` (Lho
oinL aL which oiI roducLion oaks
boforo going inLo LorminaI docIino). AII
of Lhis makos oiI doosiLs LhaL aro moro
difficuIL Lo roach financiaIIy viabIo.
Tho Iow-Iying fruiL has boon ickod,`
is how IadoI GhoiL, Lho voLoran oiI
anaIysL aL Oonhoimor & Co brokorago
in Now York, uLs iL.
Tho oiI found in massivo quanLiLios jusL
boIow Lho dosorL sands of Saudi Arabia or
in Lho roIaLivoIy caIm waLors of Lho NorLh
Soa has boon usod u or shuL off by oIiLics
Lo WosLorn oiI comanios. This Ioavos oiI
comanios Lo ush Lho hysicaI boundarios
ouL inLo doo waLor, or Lho LochnicaI
boundarios ouL inLo 'unconvonLionaIs` such
as Lho carbon-inLonsivo Lar sands, and
onvironmonLaIIy sonsiLivo aroas such as Lho
ArcLic. Tho rossuros havo incroasod for Lho
WosLorn oiI comanios bocauso of rosourco
naLionaIism, which has soon dovoIoing
counLrios sooking Lo rosLricL dovoIomonLs
for Lhoir own naLionaI oiI comanios.
A roorL wriLLon by Lho Norwogian groon
grou BoIIona said iL was arLicuIarIy
concornod abouL Russian ooraLions in Lho
BaronLs, Pochora and Kara soas bocauso
much of Lho hydrocarbon oquimonL
Lhoro is oId and inofficionL, onvironmonLaI
roguIaLion Iax and Loo IiLLIo is known abouL
Lho marino ocosysLoms in Lho rogion.
An acLivo growLh of oiI and gas
oxIoraLion in Lho rogion may bocomo a
doaLh sonLonco for iLs onvironmonL. Tho
naLuraI worId of Lhoso norLhorn soas is so
Oil rigs will have to withstand extreme conditions
in the Arctic circle. Environmentalists worry that a
major oil spill will happen.
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sonsiLivo and so vuInorabIo LhaL ovon
a sIighLosL broach in iLs sLrucLuro can Ioad
Lo consoquoncos no ono wiII bo abIo Lo
rovorso," Lho 2uu, roorL concIudod.
AriId Skodsmo, hoad of WWI-Norway`s
cIimaLo and onorgy rogrammo, has moro
fundamonLaI objocLions: To avoid Lho
worsL consoquoncos of cIimaLo chango,
wo musL haso ouL virLuaIIy aII uso of
fossiI fuoI by 2uu. This Ioavos vory IiLLIo
room for any Iargo-scaIo oxIoraLion and
oxLracLion of oiI and gas in Lho ArcLic."
@HO>KGF>GMLBG Russia Lo Lho US
and GroonIand aro convincod LhaL now
suIios of hydrocarbons aro noodod - buL
say onIy if ooraLions aro conducLod safoIy.
Cairn said iL has uL in Iaco various
rocauLionary moasuros Lo safoguard
againsL an oiI siII. Tho Edinburgh-basod
comany had Lwo driIIing uniLs in Iaco
so ono couId go Lo Lho assisLanco of Lho
oLhor in Lho ovonL of a 'bIowouL` or oLhor
robIom. EquaIIy Lhoro woro 2u suorL
vossoIs on hand aL various Limos and iL
said LhaL aII Lho sysLoms on Lho rigs woro
in Iino wiLh Lho LoughosL inLornaLionaI
safoLy sLandards.
Cairn has Lakon IogaI acLion againsL
Groonoaco Lo rovonL iL from disruLing
iLs driIIing and WaLLs was unwiIIing aL
Lho KnighLsbridgo conforonco Lo Lako
quosLions from Lho conforonco fIoor, oxcoL
Lhoso ho dofinod as LochnicaI" in naLuro.
Whon askod whoLhor Lho financiaI and
oIiLicaI faIIouL of an oiI siII wouId noL
bo disasLrous for his comany givon Lho
oxorionco of BP in Lho GuIf of Moxico,
ho said: Wo havo a fuII safoLy rogimo in
Iaco. Wo aro Lhoro aL Lho roquosL of Lho
govornmonL. Wo havo goL an oncouraging
(driIIing) rosonso. IuII sLo," ho roIiod.
BuL oLhor LochnicaI oxorLs aLLosL Lo Lho
difficuILios osod by Lho many hours of
daiIy darknoss in Lho winLor, Lho highor
faiIuro raLo of sLooI maLoriaIs in coId
LomoraLuros and Lho shoor difficuILios
osod by Lho romoLonoss of infrasLrucLuro.
Ovo GudmosLad, rofossor of marino
and ArcLic LochnoIogy aL Lho UnivorsiLy
of SLavangor in Norway, aIso raisos a
hosL of oLonLiaI difficuILios, noLabIy Lho
suiLabiIiLy of oxisLing oiIfioId oquimonL,
oiI and gas rico uncorLainLy and LroubIod
roIaLions wiLh IocaI ooIo in Lho ArcLic.
CriLics in Lho onvironmonLaI movomonL
who woro noL rosonL aL Lho Jumoirah
CarILon Towor mooLing havo moro
rofound rosorvaLions and arguo noL
noarIy onough is known abouL Lho imacL
of a major oiI siII in froozing waLors. A
singIo Iargo oiI siII in Lho wrong Iaco
and aL Lho wrong Limo of yoar can havo
vory sorious, ouIaLion-wido imacLs
on soabirds, fish and somo marino
mammaIs," said a sokosorson for Lho
WWI wiIdIifo grou. Tho robIom is
arLicuIarIy acuLo in ico-infosLod waLors:
Lhoro conLinuos Lo bo no offocLivo moLhod
for conLaining and cIoaning u an oiI
siII in ico condiLions."
Tho US govornmonL has so far uL on
hoId Ians by ShoII and oLhors Lo driII in
Lho BoauforL and Chukchi soas foIIowing
BP`s GuIf accidonL. BuL Cairn has aIroady
sLarLod now driIIing Lhis summor and Lho
Mike Watts is the deputy chief executive
of Cairns Energy, a Scottish company
drilling for oil in the Arctic.
Greenland is looking for economic
security through oil exploration.
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sonsiLivo and so vuInorabIo LhaL ovon
a sIighLosL broach in iLs sLrucLuro can Ioad
Lo consoquoncos no ono wiII bo abIo Lo
rovorso," Lho 2uu, roorL concIudod.
AriId Skodsmo, hoad of WWI-Norway`s
cIimaLo and onorgy rogrammo, has moro
fundamonLaI objocLions: To avoid Lho
worsL consoquoncos of cIimaLo chango,
wo musL haso ouL virLuaIIy aII uso of
fossiI fuoI by 2uu. This Ioavos vory IiLLIo
room for any Iargo-scaIo oxIoraLion and
oxLracLion of oiI and gas in Lho ArcLic."
@HO>KGF>GMLBG Russia Lo Lho US
and GroonIand aro convincod LhaL now
suIios of hydrocarbons aro noodod - buL
say onIy if ooraLions aro conducLod safoIy.
Cairn said iL has uL in Iaco various
rocauLionary moasuros Lo safoguard
againsL an oiI siII. Tho Edinburgh-basod
comany had Lwo driIIing uniLs in Iaco
so ono couId go Lo Lho assisLanco of Lho
oLhor in Lho ovonL of a 'bIowouL` or oLhor
robIom. EquaIIy Lhoro woro 2u suorL
vossoIs on hand aL various Limos and iL
said LhaL aII Lho sysLoms on Lho rigs woro
in Iino wiLh Lho LoughosL inLornaLionaI
safoLy sLandards.
Cairn has Lakon IogaI acLion againsL
Groonoaco Lo rovonL iL from disruLing
iLs driIIing and WaLLs was unwiIIing aL
Lho KnighLsbridgo conforonco Lo Lako
quosLions from Lho conforonco fIoor, oxcoL
Lhoso ho dofinod as LochnicaI" in naLuro.
Whon askod whoLhor Lho financiaI and
oIiLicaI faIIouL of an oiI siII wouId noL
bo disasLrous for his comany givon Lho
oxorionco of BP in Lho GuIf of Moxico,
ho said: Wo havo a fuII safoLy rogimo in
Iaco. Wo aro Lhoro aL Lho roquosL of Lho
govornmonL. Wo havo goL an oncouraging
(driIIing) rosonso. IuII sLo," ho roIiod.
BuL oLhor LochnicaI oxorLs aLLosL Lo Lho
difficuILios osod by Lho many hours of
daiIy darknoss in Lho winLor, Lho highor
faiIuro raLo of sLooI maLoriaIs in coId
LomoraLuros and Lho shoor difficuILios
osod by Lho romoLonoss of infrasLrucLuro.
Ovo GudmosLad, rofossor of marino
and ArcLic LochnoIogy aL Lho UnivorsiLy
of SLavangor in Norway, aIso raisos a
hosL of oLonLiaI difficuILios, noLabIy Lho
suiLabiIiLy of oxisLing oiIfioId oquimonL,
oiI and gas rico uncorLainLy and LroubIod
roIaLions wiLh IocaI ooIo in Lho ArcLic.
CriLics in Lho onvironmonLaI movomonL
who woro noL rosonL aL Lho Jumoirah
CarILon Towor mooLing havo moro
rofound rosorvaLions and arguo noL
noarIy onough is known abouL Lho imacL
of a major oiI siII in froozing waLors. A
singIo Iargo oiI siII in Lho wrong Iaco
and aL Lho wrong Limo of yoar can havo
vory sorious, ouIaLion-wido imacLs
on soabirds, fish and somo marino
mammaIs," said a sokosorson for Lho
WWI wiIdIifo grou. Tho robIom is
arLicuIarIy acuLo in ico-infosLod waLors:
Lhoro conLinuos Lo bo no offocLivo moLhod
for conLaining and cIoaning u an oiI
siII in ico condiLions."
Tho US govornmonL has so far uL on
hoId Ians by ShoII and oLhors Lo driII in
Lho BoauforL and Chukchi soas foIIowing
BP`s GuIf accidonL. BuL Cairn has aIroady
sLarLod now driIIing Lhis summor and Lho
Mike Watts is the deputy chief executive
of Cairns Energy, a Scottish company
drilling for oil in the Arctic.
Greenland is looking for economic
security through oil exploration.
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GroonIand govornmonL has rossod ahoad
wiLh now offshoro Iiconco awards Lo major
comanios incIuding ShoII, ConocoPhiIis
and Norway`s SLaLoiI.
Ovo KarI BorLhoIson, GroonIand`s
minisLor for indusLry and minoraI rosourcos,
makos cIoar his counLry`s moLivaLion aL a
Limo whon iL is Lrying Lo broak away from
ovoraII oIiLicaI conLroI by Donmark:
Tho rosuIL of Lho Iiconsing round is
an imorLanL sLo Lowards achioving a
susLainabIo oconomy for GroonIand.`
F>:GPABE>MA> Norwogian
govornmonL, which aIroady sancLions
gas from Lho SnohviL fioId in Lho BaronLs
Soa, has unvoiIod now Ians Lo oxIoiL
iLs far norLh.
IndusLry waLchors such as Richard
Shohord, chairman of Lho sociaIisL
oiI consuILancy, PoLroIogica, basod in
Edinburgh, boIiovos Lhoro is a sLrong
oIiLicaI momonLum bohind incroasod
oIar oxIoraLion LhaL oxLonds way boyond
Lho boundarios of GroonIand.
Ho says: ArcLic oiI and gas is on
Lho sLraLogic agonda duo Lo foar of
onorgy doondonco and foar of absoIuLo
shorLagos. Enorgy socuriLy is now
synonymous wiLh naLionaI socuriLy in
Lho US - as iL is wiLh China`. This,
combinod wiLh rising ricos moans Lho
rossuro Lo oxIoiL Lho ArcLic`s oiI woaILh
wiII onIy incroaso.
A single large oil spill in the wrong place
and at the wrong time of year can have
very serious, population-wide impacts on
seabirds, fish and some marine mammals.
A major problem with drilling for oil in the
Arctic is that it is far from any infrastructure.
Either the infrastructure will have to be built
or floating refineries put in place.
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Preparing for End Times
Investors have seen two market crashes in the past decade and theyre
now looking for protection. Thats what black swan funds and tail risk
funds offer, reports Azam Ahmed.
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54-57 Investing.indd 54 8/21/11 1:24:12 PM
September 2011
55
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as Lho way Lo roLocL invosLmonLs from
markoL crashos. BuL Lho financiaI crisis
rovod LhaL soomingIy unroIaLod assoLs
couId faII in unison. As a rosuIL, an
incroasing numbor of invosLors now wanL
roLocLion for financiaI ond Limos.
Thoso funds and offorings, usuaIIy
cosLIy and comIicaLod, can bo Iikonod
Lo insuranco. InvosLors Ioso monoy on
Lhom during normaI Limos buL sLand
Lo gain if caLasLroho sLrikos. Tons of
biIIions of doIIars aro in such invosLmonLs,
rorosonLing a smaII buL growing fracLion
of Lho invosLmonL worId, arLicuIarIy for
a sLraLogy LhaL many invosLors wouId
havo scoffod aL fivo yoars ago as oxonsivo
and unnocossary.
In Lho IasL docado, wo saw Lwo sLock
markoL crashos, which wiod ouL any
gains for invosLors ovor Lho docado and
moanL disasLor for Lhoso who had Lo Lako
Lhoir monoy ouL Lo mooL big oxonsos aL
markoL Iows,` said Zvi Bodio, a rofossor
of financo aL BosLon UnivorsiLy SchooI
of ManagomonL. ThaL, ho said, has jusL
mado Lho curronL gonoraLion of invosLors
moro awaro LhaL iL is risky ovon ovor a
docado or moro.`
WaII SLrooL Iawyors say monoy managor
cIionLs havo aroachod Lhom in roconL
monLhs abouL forming now funds aimod
aL roviding roLocLion. Banks Iiko
GoIdman Sachs aro markoLing LooIs
onginoorod Lo buIIoLroof invosLors.
ProducLs Iinkod Lo an indox known as Lho
markoL`s foar gaugo` LoLaI noarIy $2.
biIIion. And in Lho asL yoar, Lho amounL
of monoy managod in dodicaLod LaiI-
risk accounLs by bond gianL PIMCO has
doubIod Lo $23 biIIion.
Boaz WoinsLoin, a formor Lrador aL
DouLscho Bank who IosL moro Lhan
$1 biIIion of Lho bank`s monoy during
Lho financiaI crisis, bogan raising monoy
for his own Armagoddon fund IaLo IasL
yoar. IL has sinco grown Lo $4uu miIIion
of mosLIy insLiLuLionaI monoy, arL of Lho
$3.3 biIIion ho has raisod for his hodgo
funds. Somo invosLors afLor nursing Lhoso
Iossos say, 'I`d bo much haior in roLurn
for noL having LhaL kind of downsido Lo
roinvosL ono or conL of my orLfoIio in
LaiI hodging,`` ho said.
Nassim Taleb, a New York University professor, is the author of The Black Swan. A black swan event is one that mathematical models cannot
foresee, such as the collapse of Lehman Brothers and the resulting financial crisis. Black swan funds offer protection for such events.
54-57 Investing.indd 55 8/21/11 1:24:14 PM
Portfolio
CMYK
56
Such protection does
not come cheap
and occasionally
fails to work. Some
say such funds are
merely the latest Wall
Street fad and may be
ineffective because
they are designed to
protect against the last
catastrophe, not the
crisis to come.
InvosLors incIudo big ubIic onsions.
JooIIo Movi, Lho chiof invosLmonL officor
of Now Moxico`s ubIic omIoyoo onsion
fund, roconLIy rosonLod somo LaiI risk
oLions Lo hor board. WhiIo I wouIdn`L
Lond Lo uL a vory Iargo aIIocaLion Lhoro,
I boIiovo in having LhaL Lyo of insuranco
for Lho funds,` sho said.
Such roLocLion doos noL como choa
and occasionaIIy faiIs Lo work. Somo say
such funds aro moroIy Lho IaLosL WaII
SLrooL fad and may bo inoffocLivo bocauso
Lhoy aro dosignod Lo roLocL againsL Lho
IasL caLasLroho, noL Lho crisis Lo como. I
kind of boIiovo LhaL Lho bosL way Lo roduco
risk is Lo Lako Lhings ouL of Lho orLfoIio,
noL add Lhom,` said Kon GranL, rosidonL
and foundor of Risk Rosourcos.
:EMAHN@AMA> namos LaiI risk
funds and bIack swan funds aro ofLon
usod inLorchangoabIy, Lhoy aro disLincL.
TaiI risk ovonLs aro siLuaLions LhaL, whiIo
concoivabIo, aro highIy unIikoIy basod on
maLhomaLicaI modoIIing. By conLrasL, a
bIack swan - a concoL ouIarisod by
Zvie Bodie, a professor of finance at the Boston University School of Management, says
that the two stock market crashes in the past decade have made investors aware of
how risky markets are.
The stock market has been extremely
volatile since 2008. The end of July and
beginning of August this year saw huge
declines in international stock markets
thanks to the American and European
debt crisis.
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54-57 Investing.indd 56 8/21/11 1:24:18 PM
September 2011
57
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quiLo suro I`m going Lo Ioso monoy on iL.`
I undorsLand my ayoff and I undorsLand
Lhoso aro vory smaII Iossos roIaLivo Lo whaL
I know I`m going Lo mako ovonLuaIIy.`
HMA>KL:K> raising monoy Lo boL
againsL Lho worId. CauIa InvosLmonL
ManagomonL has raisod somo $2 biIIion,
whiIo 36 SouLh CaiLaI Advisors, a
London-basod fund LhaL roLurnod moro
Lhan 2uu or conL during Lho 2uu8 crisis,
is aL $3uu miIIion and counLing.
NoL aII invosLors aro soId.
TaiI risk is ouL Lhoro, wo aII know iL`s
ouL Lhoro, buL if you havo 2u somo hodgo
funds, you`ro roaIIy Iooking for sLraLogios
LhaL work in Lho LoLaI icLuro,` said Craig
SIaughLor, who ovorsoos roughIy $12 biIIion
as Lho hoad of Lho WosL Virginia InvosLmonL
ManagomonL Board. Iocusing on LaiI risk
sLraLogios - I`m jusL a IiLLIo susicious. IL`s a
IiLLIo biL of a saIos Lochniquo.`
Nassim TaIob`s 2uu, book Ma^;eZ\dLpZg
- is an ovonL LhaL modoIs faiI Lo rodicL.
So how do such Armagoddon funds
work? Tako a siLuaLion Iiko Lho coIIaso
of China`s oconomy, an ovonL considorod
highIy unIikoIy. WhiIo mosL US invosLors
do noL own Chinoso sLocks, roaI osLaLo
or curroncy, Lho foar is LhaL a shock Lo
China wouId sroad Lo Lho rosL of Lho
worId. As Lho sLock markoLs foII, a LaiI
risk or bIack swan fund wouId rofiL
bocauso iL ownod Lho oLions Lo soII
sharos in Lho SLandard & Poor`s uu-
sLock indox aL far highor IovoIs. Tho
moro Lho indox drood, Lho moro
vaIuabIo Lhoso oLions wouId bocomo.
AL Univorsa InvosLmonLs, Mark
SiLznagoI, a formor arLnor of TaIob`s,
has raisod moro Lhan $6
biIIion for a fund LhaL is
awaiLing a markoL caIamiLy.
In Lho moanLimo, ho
acknowIodgos, iL is Iosing monoy noarIy
ovory day. ParL of Lho roason is LhaL ho
buys oLions Lo soII a givon sLock in
Lho fuLuro for a rico boIow whoro iL is
curronLIy Lrading. If Lho sLock doosn`L
movo, or risos, Lho oLion is worLhIoss,
and ho Iosos monoy. BuL if Lho sharo rico
Lanks, ho can mako subsLanLiaI rofiLs.
SiLznagoI, ono of Lho moro oxorioncod
doomsday managors, doridos Lhoso who
havo jumod inLo Lho gamo roconLIy. IL
Lakos a sociaI kind of orson Lo manago
Lhoso kinds of invosLmonLs, ho says -
ooIo caabIo of sIowIy Laking Iossos,
wiLhouL Iosing Lhoir comosuro. IL Lakos
somoono LhaL`s a IiLLIo biL nuLs,` ho said.
I` II do a Lrado, Lhon say 'This is Lho bosL
Lrado I`vo ovor dono in my caroor, buL I`m
While most US investors do not own
Chinese stocks, real estate or currency, the
fear is that a shock to China would spread
to the rest of the world.
Mark Spitznagel of Universa Investments has raised more than $6 billion for
a fund that is awaiting a market calamity.
54-57 Investing.indd 57 8/21/11 1:24:22 PM
Portfolio
CMYK
56
Such protection does
not come cheap
and occasionally
fails to work. Some
say such funds are
merely the latest Wall
Street fad and may be
ineffective because
they are designed to
protect against the last
catastrophe, not the
crisis to come.
InvosLors incIudo big ubIic onsions.
JooIIo Movi, Lho chiof invosLmonL officor
of Now Moxico`s ubIic omIoyoo onsion
fund, roconLIy rosonLod somo LaiI risk
oLions Lo hor board. WhiIo I wouIdn`L
Lond Lo uL a vory Iargo aIIocaLion Lhoro,
I boIiovo in having LhaL Lyo of insuranco
for Lho funds,` sho said.
Such roLocLion doos noL como choa
and occasionaIIy faiIs Lo work. Somo say
such funds aro moroIy Lho IaLosL WaII
SLrooL fad and may bo inoffocLivo bocauso
Lhoy aro dosignod Lo roLocL againsL Lho
IasL caLasLroho, noL Lho crisis Lo como. I
kind of boIiovo LhaL Lho bosL way Lo roduco
risk is Lo Lako Lhings ouL of Lho orLfoIio,
noL add Lhom,` said Kon GranL, rosidonL
and foundor of Risk Rosourcos.
:EMAHN@AMA> namos LaiI risk
funds and bIack swan funds aro ofLon
usod inLorchangoabIy, Lhoy aro disLincL.
TaiI risk ovonLs aro siLuaLions LhaL, whiIo
concoivabIo, aro highIy unIikoIy basod on
maLhomaLicaI modoIIing. By conLrasL, a
bIack swan - a concoL ouIarisod by
Zvie Bodie, a professor of finance at the Boston University School of Management, says
that the two stock market crashes in the past decade have made investors aware of
how risky markets are.
The stock market has been extremely
volatile since 2008. The end of July and
beginning of August this year saw huge
declines in international stock markets
thanks to the American and European
debt crisis.
G
R
A
P
H

E
A
S
T
54-57 Investing.indd 56 8/21/11 1:24:18 PM
September 2011
57
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57
I
n
v
e
s
t
i
n
g
quiLo suro I`m going Lo Ioso monoy on iL.`
I undorsLand my ayoff and I undorsLand
Lhoso aro vory smaII Iossos roIaLivo Lo whaL
I know I`m going Lo mako ovonLuaIIy.`
HMA>KL:K> raising monoy Lo boL
againsL Lho worId. CauIa InvosLmonL
ManagomonL has raisod somo $2 biIIion,
whiIo 36 SouLh CaiLaI Advisors, a
London-basod fund LhaL roLurnod moro
Lhan 2uu or conL during Lho 2uu8 crisis,
is aL $3uu miIIion and counLing.
NoL aII invosLors aro soId.
TaiI risk is ouL Lhoro, wo aII know iL`s
ouL Lhoro, buL if you havo 2u somo hodgo
funds, you`ro roaIIy Iooking for sLraLogios
LhaL work in Lho LoLaI icLuro,` said Craig
SIaughLor, who ovorsoos roughIy $12 biIIion
as Lho hoad of Lho WosL Virginia InvosLmonL
ManagomonL Board. Iocusing on LaiI risk
sLraLogios - I`m jusL a IiLLIo susicious. IL`s a
IiLLIo biL of a saIos Lochniquo.`
Nassim TaIob`s 2uu, book Ma^;eZ\dLpZg
- is an ovonL LhaL modoIs faiI Lo rodicL.
So how do such Armagoddon funds
work? Tako a siLuaLion Iiko Lho coIIaso
of China`s oconomy, an ovonL considorod
highIy unIikoIy. WhiIo mosL US invosLors
do noL own Chinoso sLocks, roaI osLaLo
or curroncy, Lho foar is LhaL a shock Lo
China wouId sroad Lo Lho rosL of Lho
worId. As Lho sLock markoLs foII, a LaiI
risk or bIack swan fund wouId rofiL
bocauso iL ownod Lho oLions Lo soII
sharos in Lho SLandard & Poor`s uu-
sLock indox aL far highor IovoIs. Tho
moro Lho indox drood, Lho moro
vaIuabIo Lhoso oLions wouId bocomo.
AL Univorsa InvosLmonLs, Mark
SiLznagoI, a formor arLnor of TaIob`s,
has raisod moro Lhan $6
biIIion for a fund LhaL is
awaiLing a markoL caIamiLy.
In Lho moanLimo, ho
acknowIodgos, iL is Iosing monoy noarIy
ovory day. ParL of Lho roason is LhaL ho
buys oLions Lo soII a givon sLock in
Lho fuLuro for a rico boIow whoro iL is
curronLIy Lrading. If Lho sLock doosn`L
movo, or risos, Lho oLion is worLhIoss,
and ho Iosos monoy. BuL if Lho sharo rico
Lanks, ho can mako subsLanLiaI rofiLs.
SiLznagoI, ono of Lho moro oxorioncod
doomsday managors, doridos Lhoso who
havo jumod inLo Lho gamo roconLIy. IL
Lakos a sociaI kind of orson Lo manago
Lhoso kinds of invosLmonLs, ho says -
ooIo caabIo of sIowIy Laking Iossos,
wiLhouL Iosing Lhoir comosuro. IL Lakos
somoono LhaL`s a IiLLIo biL nuLs,` ho said.
I` II do a Lrado, Lhon say 'This is Lho bosL
Lrado I`vo ovor dono in my caroor, buL I`m
While most US investors do not own
Chinese stocks, real estate or currency, the
fear is that a shock to China would spread
to the rest of the world.
Mark Spitznagel of Universa Investments has raised more than $6 billion for
a fund that is awaiting a market calamity.
54-57 Investing.indd 57 8/21/11 1:24:22 PM
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OUTSOURCING FIRMS
CREATE US JOBS
<:K>>KIKHLI><ML<:GEHHD
dim Lhoso days for young Amorican
Iawyors. To US firms havo cuL hiring
or movod Lo a Iowor-Lior ay sysLom for
many now associaLos. CororaLions aro
roducing Lhoir IogaI doarLmonLs. LogaI
Lom comanios now ay as IiLLIo as
$2u an hour Lo board-corLifiod Iawyors
for documonL roviows LhaL a docado ago
mighL havo boon biIIod aL $2uu an hour.
BuL Lhoro is aL IoasL ono gIimmor of IighL.
And iL comos from a surrising dirocLion.
OuLsourcing firms, Lho comanios LhaL in
roconL yoars addod Lo Lho financiaI woos of
Lho Amorican IogaI rofossion by sonding
work Lo Iow-cosL counLrios Iiko India, aro
now croaLing jobs for Iawyors in Lho US.
Tho US saIarios for ouLsourcod work,
LyicaIIy in Lho $u,uuu Lo $8u,uuu rango,
may Iook moagro comarod wiLh Lho six
figuros now associaLos mighL sLiII hoo Lo
draw aL a big firm. BuL ouLsourcing jobs
LyicaIIy ay boLLor Lhan Lom work - and
corLainIy boLLor Lhan no work aL aII. And aL
LhaL saIary rango, US Iawyors sLarL Lo Iook
a biL moro comoLiLivo wiLh Lhoir offshoro
counLorarLs - and moro aLLracLivo Lo
oLonLiaI Amorican cIionLs LhaL mighL noL bo
comforLabIo sonding IogaI work ovorsoas.
If wo`ro going Lo doIivor a fanLasLic
cIionL oxorionco, Lho onIy way Lo do iL is
Lo havo an onshoro faciIiLy,` said Sanjay
KamIani, co-chiof oxocuLivo of Pangoa3, a
IogaI ouLsourcing firm wiLh officos in Now
York and Mumbai.
Pangoa3, which was boughL by Thomson
RouLors in Novombor, has jusL oonod
a 4uu-soaL offico in CarroIILon, Toxas,

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a DaIIas suburb. Tho now offico moans
Pangoa3 wiII havo Iawyors working during
US businoss hours, on Lasks LhaL, bocauso
of IogisLics or US Iaw, can bo difficuIL Lo
orform ouLsido Lho counLry - Iiko wriLing
and voLLing oxorL conLroI documonLs,
miIiLary conLracLs and somo aLonL roviows.
Many of Pangoa3`s main comoLiLors
aro aIroady doing IogaI work in Lho US
and havo boon hiring sLoadiIy in roconL
monLhs. And Lhough Lho indusLry`s LoLaI
numbor of omIoyoos in Lho US is sLiII
osLimaLod Lo bo onIy in Lho hundrods,
anaIysLs rodicL fasL growLh for Lho fioId.
Bocauso IogaI ouLsourcing comanios
grow sLoadiIy during Lho rocossion as
cororaLions Lrimmod IogaI sLaffs, Lho
indusLry was abIo Lo aLLracL invosLors Iiko
Thomson RouLors and InLormodiaLo CaiLaI
Grou. Now IogaI ouLsourcing comanios
and oLhors aro ooning officos and hiring
Iawyors in Iowor-cosL aroas in Lho US, Iiko
WosL Virginia and NorLh DakoLa.
LogaI ouLsourcing comanios omIoy
abouL 16,uuu ooIo worIdwido, according
Lo Edward Brooks, foundor of Lho LPO
Program, which maLchos IogaI ouLsourcing
comanios wiLh oLonLiaI cIionLs. Tho
indusLry mado an osLimaLod $4uu
miIIion in rovonuo in 2u1u, according
Lo Lho rosoarchor Tho DaLamoniLor
Grou, which was jusL a Liny fracLion
of Lho worId`s $2uu-biIIion-a-yoar IogaI
markoL. BuL DaLamoniLor rodicLs IogaI
ouLsourcing rovonuos wiII grow Lo $2.4
biIIion by 2u12, basod on Lho indusLry`s
roconL raid oxansion.
In arL bocauso of Lho harsh oconomic
The US legal profession has gone through hard times thanks to the economic
climate and the move to outsourced overseas. But now outsourcing jobs are
returning to American shores, reports Heather Timmons.
Kirit Amichandwala, a senior manager
with Pangea3, trains American lawyers
on how to conduct document reviews.
58-59 Outsourcing 2-pg.indd 58 8/21/11 1:25:00 PM
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cIimaLo of Lho IasL fow yoars, Lho roaIiLy
is LhaL Lho UniLod SLaLos and Lho UniLod
Kingdom havo many Iowor-cosL IocaLions
and good suIios of IogaI rofossionaIs,`
said Mark Ross, a vico rosidonL aL
InLogroon, an ouLsourcing comany
basod in Los AngoIos.
InLogroon has Iawyors and araIogaIs
in 1, officos around Lho worId, incIuding
India and SouLh Africa. BuL Lho comany,
which is now hiring Iawyors and oLhor IogaI
rofossionaIs in iLs Iargo, NorLh DakoLa,
and BrisLoI, EngIand, officos, curronLIy
has abouL uu omIoyoos in Lho US and
oxocLs Lo havo 6uu by Lho ond of Lho yoar.
In Lho US, ouLsourcing comanios
aro hiring Iawyors from Lomorary
IogaI sorvicos firms or rocruiLing Lhom
dirocLIy ouL of Iaw schooI. Tho ay is
ofLon comarabIo Lo Iawyors` saIarios in
smaIIor ciLios. And Lho jobs can como wiLh
oLhor bonofiLs, Iiko oquiLy sLakos in Lho
comany and managomonL oorLuniLios
LhaL mighL noL bo widoIy avaiIabIo aL
convonLionaI Iaw firms.
LiIy Liu joinod Pangoa3`s now Toxas
offico afLor six yoars as a Lomorary Iawyor
and rovious oxorionco as a LriaI Iawyor
in Toxas. This is LruIy a gIobaI working
onvironmonL,` sho said of hor now job, in a
LoIohono inLorviow. And Lhough sho sLiII
handIos documonL roviows, which woro
hor rosonsibiIiLy aL Lho Lom agoncios, Liu
said sho finds moro varioLy and moaning
in Lhis job. Wo inLoracL wiLh Lho cIionLs,
unIiko in Lho Lomorary worId,` sho said.
In AriI, Pangoa3 sonL KiriL
AmichandwaIa, a sonior managor from
Mumbai, Lo Lrain now omIoyoos in Toxas
The reality is that
the United States and
the United Kingdom
have many lower-
cost locations and
good supplies of legal
professionals.
Sanjay Kamlani, founder and chairman of
Pangea3, a legal services provider firm
based in the US with operations in India.
Daniel Reed is the
CEO of UnitedLex.
His company regularly
swaps teams of
lawyers between the
US and India.
on how Lo conducL documonL roviows
and oLhor Lasks Lho way Lho comany`s
Iawyors do in India. Tho now hiros aII
havo good documonL roviow oxorionco,`
AmichandwaIa said, buL a IoL of Lho
rocossos wo foIIow aro roLLy uniquo Lo us.`
HG>H?Pangoa3`s main comoLiLors,
UniLodLox, has sLarLod roguIarIy swaing
Loams of Iawyors boLwoon Lho US and
India so LhaL omIoyoos in boLh counLrios
can Ioarn Lo work Lho samo way. Tho big
chaIIongo is how do you goL a bunch
of Amorican Iawyors Lo boIiovo LhaL wo
mighL bo doing Lhings smarLor by using
a rocoss dovoIood in India,` said ShoIIy
DaIrymIo, sonior vico rosidonL for gIobaI
IiLigaLion suorL aL UniLodLox.
AILhough UniLodLox is basod in Kansas,
so far mosL of iLs ,uu omIoyoos aro in
India. SLiII, abouL 24u omIoyoos aro in
Lho US, wiLh moro Lo bo hirod. In March
Lho comany announcod Ians Lo movo
iLs hoadquarLors Lo a now 2,23u-squaro-
moLro faciIiLy in OvorIand Park, Kansas,
Lo aIIow for furLhor growLh.
Thoro is somo work LhaL jusL can`L bo
ouLsourcod Lo India,` said DanioI Rood,
UniLodLox`s chiof oxocuLivo.
Though IogaI ouLsourcing comanios
may noL rovido Lho monLoring and
divorsiLy of oxorionco of a LradiLionaI Iaw
firm, Lhoy aro a caroor oLion LhaL Iaw
schooI graduaLos shouId noL ignoro, said
Cassandra Burko RoborLson, an associaLo
rofossor aL Caso WosLorn Rosorvo
UnivorsiLy`s SchooI of Law in CIovoIand.
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Essentials
Travel
Essentials
THE BEST OF LEISURE AND LIFESTYLE
THE SEA
The Danes have always been seafaring people, as is evident
from their Viking ancestors that roamed far and wide. Thats
why no visit to the country is complete without engaging in
its maritime past, reports Graham Simmons.
CALL OF
Copenhagens Nyhavn (New
Harbour) has actually been
around for more than 500 years.
61
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CMYK
Essentials
Travel
Essentials
THE BEST OF LEISURE AND LIFESTYLE
THE SEA
The Danes have always been seafaring people, as is evident
from their Viking ancestors that roamed far and wide. Thats
why no visit to the country is complete without engaging in
its maritime past, reports Graham Simmons.
CALL OF
Copenhagens Nyhavn (New
Harbour) has actually been
around for more than 500 years.
61
61-65 Ess Opener.indd 61 8/21/11 3:26:02 PM
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Essentials
Travel
I
MLF:DBG@
wavos in Amorica.
P^ma^=khpg^],
Lho rizo-winning
novoI by Danish
auLhor CarsLon Jonson, shoL sLraighL
inLo Lho US bosLsoIIor IisL on iLs roIoaso
in Iobruary 2u11. A roviowor in Ma^
L\hmlfZg rankod Lho book aIongsido Ma^
H]rll^r, Fh[r=b\dand Ma^Kbf^h_ma^
:g\b^gmFZkbg^k. Tho anocdoLos in Lhis
bIockbusLor saga of nauLicaI Iifo on Lho
isIand of ro in souLhorn Donmark -
a sLory sanning four gonoraLions and fivo
conLinonLs - sLir Lho soa LhaL fIows in Lho
voins of ovory Dano.
Donmark, a naLion of ovor 4uu
isIands, has aIways boon inLimaLoIy
connocLod wiLh Lho soa. UnIiko Lho
inhabiLanLs of somo isIand naLions,
Danish ooIo havo Iookod ouLwards
Lo Lho rosL of Lho worId, raLhor Lhan
boing insuIar. Tho Danish saiIor is Lho
forofaLhor of gIobaIisaLion", Jonson says.
Tho farmor usod Lo Lhink ho was Lho
conLro of Lho worId, buL Lho saiIor know
LhaL ho wasn`L!"
As good a Iaco as any Lo sLarL
oxIoring Donmark`s mariLimo hisLory
is in Lho Danish caiLaI Coonhagon (or
Kobnhavn), arLicuIarIy in Lho rocincL
known as Nyhavn ('Now Harbour`).
AcLuaIIy, Lhis namo is now noarIy uu
yoars oId. BuL whaLovor Lho namo,
Nyhavn somohow managos Lo bo inviLing,
sLimuIaLing and roIaxing aL Lho samo Limo.
Evoryono Iovos a harbour - which
fooIs safo and aImosL womb-Iiko - and
aL Lho samo Limo, iL oxorLs a conLrioLaI
forco, drawing ooIo in Iiko moLhs Lo a
candIo fIamo. AccordingIy, Nyhavn has
for conLurios boon Lho haunL of ovoryono
from shiwrighLs and saiIors Lo wriLors,
advonLurors and IaLLor-day LourisLs.
Tho Danish auLhor Hans ChrisLian
Andorson Iikod Nyhavn so much LhaL
aL difforonL oriods of his Iifo ho ownod
Lhroo soaraLo housos horo; ono of Lhom,
a narrow groy buiIding, sLiII sLands by
Lho harbour.
In Andorson`s day, Lhis rocincL was
ono of Lho roughosL in Coonhagon, fuII
of saiIors` ubs and bargain-basomonL
inns. Today, Nyhavn has changod
docidodIy for Lho boLLor. Tho shiwrighLs
and boaL-buiIdors aro sLiII horo - como
ovoning, you can waLch Lhom working on
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The blue Netto Boats
are half the price of the
gaudily-signed DFDS
tourist barges; but
had I known, I would
have bought an all-day
Waterbus ticket, which
allows unlimited transport
on a figure-eight loop
from Nyhavn.
The Sea Stallion, a
reconstructed Viking warship,
entered Dublin Harbour
in 2007 after sailing from
Roskilde in Denmark.
63
mainLonanco choros or roIaxing wiLh a
drink on board Lhoir boaLs - buL mosL of
Lho saiIors` ubs havo boon convorLod inLo
umarkoL Lavorns and rosLauranLs. Tho
broad fooLways Iining Lho inIoL aro now
dockod waII-Lo-waII wiLh avomonL cafs.
On a sunny Sunday iL sooms LhaL Lho
whoIo worId has como Lo Nyhavn. Liko
mosL visiLors I Lako an obIigaLory canaI
cruiso, wiLh Lho cruiso bargo somohow
managing Lo ass undor Lho bridgos of
ChrisLianshavn canaI (whoro Lho RoyaI
yachL is borLhod) and Irodoricksborg
canaI, boforo hoading ouL inLo Coonhagon
harbour. Tho bIuo NoLLo BoaLs aro haIf Lho
rico of Lho gaudiIy-signod DIDS LourisL
Funen is linked to Zeeland,
Denmarks largest island, by
the Great Belt Bridge.
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The blue Netto Boats
are half the price of the
gaudily-signed DFDS
tourist barges; but
had I known, I would
have bought an all-day
Waterbus ticket, which
allows unlimited transport
on a figure-eight loop
from Nyhavn.
The Sea Stallion, a
reconstructed Viking warship,
entered Dublin Harbour
in 2007 after sailing from
Roskilde in Denmark.
63
mainLonanco choros or roIaxing wiLh a
drink on board Lhoir boaLs - buL mosL of
Lho saiIors` ubs havo boon convorLod inLo
umarkoL Lavorns and rosLauranLs. Tho
broad fooLways Iining Lho inIoL aro now
dockod waII-Lo-waII wiLh avomonL cafs.
On a sunny Sunday iL sooms LhaL Lho
whoIo worId has como Lo Nyhavn. Liko
mosL visiLors I Lako an obIigaLory canaI
cruiso, wiLh Lho cruiso bargo somohow
managing Lo ass undor Lho bridgos of
ChrisLianshavn canaI (whoro Lho RoyaI
yachL is borLhod) and Irodoricksborg
canaI, boforo hoading ouL inLo Coonhagon
harbour. Tho bIuo NoLLo BoaLs aro haIf Lho
rico of Lho gaudiIy-signod DIDS LourisL
Funen is linked to Zeeland,
Denmarks largest island, by
the Great Belt Bridge.
61-65 Ess Opener.indd 63 8/21/11 3:26:08 PM
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64
Essentials
Travel
bargos; buL had I known, I wouId havo
boughL an aII-day WaLorbus LickoL, which
aIIows unIimiLod LransorL on a figuro-
oighL Ioo from Nyhavn.
LaLo on Sunday ovoning I Lako a waIk
aIong Nygado from Lho harbour back Lo
Nyhavn. Tho crowds aro sLiII Lhoro as
Lho IasL rays of sunsoL Lingo Lho inIoL in
a hundrod shados of norLhorn IighL. Tho
cafs aro fuII, buL many visiLors simIy
quaff a drink whiIo siLLing quaysido. AIong
Lho harbour osIanado, VioLnamoso and
Chinoso fishing famiIios dangIo Lhoir Iinos.
Tho foIIowing (Monday) morning, Lho
scono aL Nyhavn is vory difforonL. Gono aro
Lho Sunday crowds, Lho LourisLs and day-
Lriors. Tho canaI-cruiso boaLs aro 8u or
conL omLy and Lho cafs aro sLruggIing Lo
do any businoss. Tho cycIisLs aro sLiII horo,
buL as Lhis is a working day Lhoy aro LaIking
businoss on Lhoir mobiIo honos.

MH@>M anoLhor handIo on Donmark`s
asLonishing mariLimo horiLago ono shouId
hoad Lo Lho Viking Shis Musoum in
Lho ciLy of RoskiIdo, jusL 3u minuLos by
raiI from conLraI Coonhagon. RoskiIdo,
In 162, Lho romains of fivo ancionL
Viking shis, incIuding a IongboaL and a
warshi, woro found buriod in Lho mud
of RoskiIdo Ijord, noar Lho viIIago of
SkuIdoIov. Thoso romains aro on show in
Lho indoor socLion (Lho Vikings Shi HaII)
of Lho Viking Shis Musoum - Lhough iL
has Lo bo said LhaL somo of Lho romains
soom moro skoIoLons, Iooking somoLhing
Iiko Lho fossiIisod ribcagos of Iong-
doad mammoLhs. BuL amazingIy, navaI
archaooIogisLs havo boon abIo Lo daLo
Lhoso shis - Lho IargosL SkuIdoIov boaL,
Lho foarsomo-Iooking 3u-moLro-Iong L^Z
LmZeebhg warshi oworod by 6u oarsmon
- was buiIL noar DubIin around 1u42
by masLor Viking boaLbuiIdors. An ovon
oarIior fIoLiIIa of RoskiIdo boaLs was usod
by King CanuLo (SainL Knud Lo Lho Danos)
Lo invado EngIand in 1u1.
On Musoum IsIand, Lho ouLdoor
socLion of Lho Viking Shis Musoum,
roIicas of 1u oId Viking shis havo
boon buiIL, wiLh sLiII moro curronLIy on
Lho drawing board. Tho biggosL rojocL
of aII, a fuII-scaIo roroducLion of Lho
L^ZLmZeebhg, was comIoLod using Lho
originaI Viking maLoriaIs of oak, ash and
ino (wiLh horsohair and hom roos
A sailor in Odense, which was
once a thriving port city trading
with England and Scotland in
Viking times.
The Viking Ships Museum in Roskilde has various vessels that date as far back as the 11th century.
Odense is known for its rows of timber-
frame houses, that were once found
throughout Denmark.
Lho formor caiLaI of Donmark, is now
ossibIy boLLor known for iLs annuaI rock
music fosLivaI Lhan for anyLhing oIso - buL
Lho Viking Shis Musoum doos conLain
somo romarkabIo Lroasuros.
G
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61-65 Ess Opener.indd 64 8/21/11 3:26:13 PM
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CMYK
64
Essentials
Travel
bargos; buL had I known, I wouId havo
boughL an aII-day WaLorbus LickoL, which
aIIows unIimiLod LransorL on a figuro-
oighL Ioo from Nyhavn.
LaLo on Sunday ovoning I Lako a waIk
aIong Nygado from Lho harbour back Lo
Nyhavn. Tho crowds aro sLiII Lhoro as
Lho IasL rays of sunsoL Lingo Lho inIoL in
a hundrod shados of norLhorn IighL. Tho
cafs aro fuII, buL many visiLors simIy
quaff a drink whiIo siLLing quaysido. AIong
Lho harbour osIanado, VioLnamoso and
Chinoso fishing famiIios dangIo Lhoir Iinos.
Tho foIIowing (Monday) morning, Lho
scono aL Nyhavn is vory difforonL. Gono aro
Lho Sunday crowds, Lho LourisLs and day-
Lriors. Tho canaI-cruiso boaLs aro 8u or
conL omLy and Lho cafs aro sLruggIing Lo
do any businoss. Tho cycIisLs aro sLiII horo,
buL as Lhis is a working day Lhoy aro LaIking
businoss on Lhoir mobiIo honos.

MH@>M anoLhor handIo on Donmark`s
asLonishing mariLimo horiLago ono shouId
hoad Lo Lho Viking Shis Musoum in
Lho ciLy of RoskiIdo, jusL 3u minuLos by
raiI from conLraI Coonhagon. RoskiIdo,
In 162, Lho romains of fivo ancionL
Viking shis, incIuding a IongboaL and a
warshi, woro found buriod in Lho mud
of RoskiIdo Ijord, noar Lho viIIago of
SkuIdoIov. Thoso romains aro on show in
Lho indoor socLion (Lho Vikings Shi HaII)
of Lho Viking Shis Musoum - Lhough iL
has Lo bo said LhaL somo of Lho romains
soom moro skoIoLons, Iooking somoLhing
Iiko Lho fossiIisod ribcagos of Iong-
doad mammoLhs. BuL amazingIy, navaI
archaooIogisLs havo boon abIo Lo daLo
Lhoso shis - Lho IargosL SkuIdoIov boaL,
Lho foarsomo-Iooking 3u-moLro-Iong L^Z
LmZeebhg warshi oworod by 6u oarsmon
- was buiIL noar DubIin around 1u42
by masLor Viking boaLbuiIdors. An ovon
oarIior fIoLiIIa of RoskiIdo boaLs was usod
by King CanuLo (SainL Knud Lo Lho Danos)
Lo invado EngIand in 1u1.
On Musoum IsIand, Lho ouLdoor
socLion of Lho Viking Shis Musoum,
roIicas of 1u oId Viking shis havo
boon buiIL, wiLh sLiII moro curronLIy on
Lho drawing board. Tho biggosL rojocL
of aII, a fuII-scaIo roroducLion of Lho
L^ZLmZeebhg, was comIoLod using Lho
originaI Viking maLoriaIs of oak, ash and
ino (wiLh horsohair and hom roos
A sailor in Odense, which was
once a thriving port city trading
with England and Scotland in
Viking times.
The Viking Ships Museum in Roskilde has various vessels that date as far back as the 11th century.
Odense is known for its rows of timber-
frame houses, that were once found
throughout Denmark.
Lho formor caiLaI of Donmark, is now
ossibIy boLLor known for iLs annuaI rock
music fosLivaI Lhan for anyLhing oIso - buL
Lho Viking Shis Musoum doos conLain
somo romarkabIo Lroasuros.
G
R
A
P
H

E
A
S
T
G
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P
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and Iinon saiIs) and coios of oId Viking
shibuiIding LooIs. Tho L^ZLmZeebhg saiIod
from RoskiIdo Lo DubIin and back again
in 2uu,-u8 as arL of a major Viking-ago
coIobraLion, and has jusL boon roIaunchod
foIIowing 18 monLhs in Lho dry dock.
MA>BLE:G= of Iunon (or Iyn), norLh
of Lho smaIIor ro IsIand of P^ma^
=khpg^] famo, rovidos moro cIuos Lo Lho
rich shibuiIding and mariLimo Lrading
hisLory of Donmark. Irom Coonhagon,
iL`s a Lhroo-hour Lri Lo Lho isIand caiLaI
Odonso, Donmark`s Lhird-biggosL ciLy.
BuL afLor Coonhagon, Odonso somohow
sooms Iiko a counLry cousin.
AL firsL sighL, Lhoro is onIy ono Iaco
as boring as Odonso on a Sunday - and
LhaL is Odonso on a Monday. BuL Lho
ciLy doos havo iLs charms, incIuding
row uon row of LumbIodown woodon
housos (ono of Lhom housing Lho Hans
ChrisLian Andorson Musoum) Iooking as
Lhough Lhoy`ro mado from gingorbroad.
In Coonhagon mosL such homos woro
domoIishod Iong ago, buL horo in Odonso,
as on somo oLhor Danish isIands, Lhoy Iivo
on. Tho onIy Limo I`d soon a simiIar houso
was on Sydnoy`s Lano Covo Rivor, whoro
an oIdorIy ScoLLish Iady had shown mo Lho
Liny coLLago and boaLshod buiIL by hor IaLo
Danish husband.
HG>>O>GBG@, afLor a visiL Lo Lho
imosing SL Knud`s (or CanuLo`s)
CaLhodraI) I Lako a Iong waIk Lo Odonso
harbour Lo join a guidod harbour Lour
(Odonso aoars Lo bo inIand, buL iLs orL
is in facL joinod Lo Lho soa by a Iong, wido
canaI connocLing wiLh Odonso Ijord).
Throo sLrooLs - Londongado, GIasgowgado
and EngIandsgado - aro namod afLor whaL
usod Lo bo a roaring Lrado wiLh EngIand
and ScoLIand. BuL Odonso`s shibuiIding
indusLry is now in sad docIino, wiLh
Donmark`s IargosL shiyard, Odonso SLooI
Shiyard, duo Lo cIoso noxL yoar (2u12).
Tho Eurooan GIobaIisaLion AdjusLmonL
Iund announcod in Juno 2u11 LhaL iL
wouId mako avaiIabIo ovor t14 miIIion as
comonsaLion aymonLs Lo Odonso SLooI
workors mado rodundanL.
If a gianL Iiko Odonso SLooI Shiyard,
which buiIL Lho massivo Maorsk RoRo
shis, is forcod Lo cIoso duo Lo Asian
comoLiLion, whaL doos Lhis say abouL Lho
rosL of Lho Danish boaLbuiIding indusLry?
IorLunaLoIy, Lho highIy-dovoIood
LradiLionaI Danish skiIIs of buiIding and
roairing rocroaLionaI boaLs and Ioasuro-
crafL aro noL soL Lo dio ouL any Limo soon.
And ovon if gIobaI warming causos soa
IovoIs Lo riso aIarmingIy, Lhoro wiII aIways
bo aL IoasL ono Danish isIand - and ono
boaL - in soarch of anoLhor.
On weekends Nyhavn buzzes with both
locals and tourists frequenting the many
cafs and restaurants.
Egeskov Castle on Funen is Europes best-preserved water castle. It was built in 1545.
61-65 Ess Opener.indd 65 8/21/11 3:26:17 PM
PNAHG@RN%:P>:EMARFBG@
DynasLy arL coIIocLor, was ovidonLIy
noL fond of sharing, givon his doaLhbod
command Lo burn his mosL boIovod
ainLing, 'DwoIIing in Lho Iuchun
MounLains`. IorLunaLoIy, a nohow
snaLchod Lho scroII from Lho funoraI yro
LhaL day in 16u, buL noL boforo fIamos
sIiL Lho work in Lwo.
During Lho Lhroo-and-a-haIf
conLurios sinco Lhon, Lho Lwo socLions
woro koL aarL by grood, civiI war
and Lho vicissiLudos of goooIiLicaI
gamosmanshi. Tho smaIIor ioco, jusL
u conLimoLros across, found iLs way Lo
a rovinciaI musoum in CommunisL-
ruIod China. Tho moro imosing 6.1-
moLro-Iong socLion ondod u in Taiwan,
Lho isIand whoro Lho roLroaLing Chinoso
NaLionaIisLs - and boaLIoads of Lroasuros
from Boijing`s imoriaI aIaco - ondod u
afLor Lhoy IosL Lho civiI war in 14.
If Lho sLory of 'Iuchun MounLains` is
richIy symboIic of China`s LumuILuous
hisLory and iLs six-docado osLrangomonL
from Taiwan, Lhon Lho ainLing`s
rounificaLion in Juno aL Lho NaLionaI
PaIaco Musoum in Taioi, Lho Taiwanoso
caiLaI, is a mado-Lo-ordor moLahor for
Lho roconciIiaLion LhaL CommunisL ParLy
Ioadors havo Iong imaginod for whaL Lhoy
doom a broakaway rovinco.
If Lho ainLing can bo broughL LogoLhor,
so can our ooIo,` Primo MinisLor Won
Jiabao of China said IasL yoar uon
Ioarning LhaL boLh China and Taiwan,
sLiII formaIIy aL war, had agrood Lo Lho
joinL showing of a work LhaL oxorLs havo
rankod as among Lho 1u mosL imorLanL
Chinoso ainLings. Bogun in 134, by
An Artistic Metaphor
The uniting of two halves of a painting is illustrative
of the improving relations between China and Taiwan.
Yet it also highlights a turbulent past and the many
issues that still need resolving, reports Andrew Jacobs.
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PNAHG@RN%:P>:EMARFBG@
DynasLy arL coIIocLor, was ovidonLIy
noL fond of sharing, givon his doaLhbod
command Lo burn his mosL boIovod
ainLing, 'DwoIIing in Lho Iuchun
MounLains`. IorLunaLoIy, a nohow
snaLchod Lho scroII from Lho funoraI yro
LhaL day in 16u, buL noL boforo fIamos
sIiL Lho work in Lwo.
During Lho Lhroo-and-a-haIf
conLurios sinco Lhon, Lho Lwo socLions
woro koL aarL by grood, civiI war
and Lho vicissiLudos of goooIiLicaI
gamosmanshi. Tho smaIIor ioco, jusL
u conLimoLros across, found iLs way Lo
a rovinciaI musoum in CommunisL-
ruIod China. Tho moro imosing 6.1-
moLro-Iong socLion ondod u in Taiwan,
Lho isIand whoro Lho roLroaLing Chinoso
NaLionaIisLs - and boaLIoads of Lroasuros
from Boijing`s imoriaI aIaco - ondod u
afLor Lhoy IosL Lho civiI war in 14.
If Lho sLory of 'Iuchun MounLains` is
richIy symboIic of China`s LumuILuous
hisLory and iLs six-docado osLrangomonL
from Taiwan, Lhon Lho ainLing`s
rounificaLion in Juno aL Lho NaLionaI
PaIaco Musoum in Taioi, Lho Taiwanoso
caiLaI, is a mado-Lo-ordor moLahor for
Lho roconciIiaLion LhaL CommunisL ParLy
Ioadors havo Iong imaginod for whaL Lhoy
doom a broakaway rovinco.
If Lho ainLing can bo broughL LogoLhor,
so can our ooIo,` Primo MinisLor Won
Jiabao of China said IasL yoar uon
Ioarning LhaL boLh China and Taiwan,
sLiII formaIIy aL war, had agrood Lo Lho
joinL showing of a work LhaL oxorLs havo
rankod as among Lho 1u mosL imorLanL
Chinoso ainLings. Bogun in 134, by
An Artistic Metaphor
The uniting of two halves of a painting is illustrative
of the improving relations between China and Taiwan.
Yet it also highlights a turbulent past and the many
issues that still need resolving, reports Andrew Jacobs.
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Huang Gongwang, Lho imrossionisLic
ink rondoring of roIIing oaks and
ruraI soLLIomonLs was so infIuonLiaI Lo
gonoraLions of Iandscao ainLors LhaL iL
sawnod dozons of coios and forgorios.
Tho oxhibiLion, LiLIod 'Landscao
RouniLod,` has boon addod Lo Lho IisL
of noLabIo firsLs LhaL havo foIIowod Lho
2uu8 oIocLion of Taiwan`s rosidonL, Ma
Ying-joou, who has soughL cIosor Lios
Lo Lho mainIand - a markod conLrasL Lo
Lho somoLimos anLagonisLic imuIsos of
his rodocossor, Chon Shui-bian, who
ovon Lurnod down an oIivo branch in
Lho form of gianL andas. Sinco Ma`s
inauguraLion, a rafL of broakLhrough
agroomonLs boLwoon Taiwan and
China havo yioIdod a air of andas for
Lho Taioi Zoo, Lho ooning of dirocL
shiing, osLaI and air Iinks, and an
arrangomonL LhaL IasL yoar aIIowod 1.2
miIIion mainIand LourisLs Lo visiL - and
sond monoy - on Lho isIand.
Incroasod cuILuraI and oconomic Lios
havo Ioasod many Taiwanoso businoss
Ioadors buL havo aIso sLokod anxioLy
among Lhoso who viow such inducomonLs
as an aLLomL Lo onsnaro Taiwan inLo
China`s incroasingIy dominooring
oconomic orbiL. Tso Chon-dong, a
rofossor of oIiLicaI scionco aL NaLionaI
Taiwan UnivorsiLy, said many ooIo
horo couId noL hoI buL bo scoLicaI
of Boijing`s nowfound Iargosso. WiII
LighLor oconomic Iinks bring moro
undorsLanding boLwoon Lho Lwo?" ho
askod. Or wiII Boijing gain moro conLroI
ovor boLh Taiwan`s oconomy and oIiLics?
IL romains uncIoar aL Lhis momonL."
Ior now, doLonLo has iLs IimiLs,
osociaIIy whon iL comos Lo arL. AILhough
Lho PaIaco Musoum in Boijing - whoro
'Iuchun MounLains` was disIayod boforo
Lho NaLionaIisLs carLod iL away - IonL
Lhoir Taiwanoso counLorarLs 12 iLoms
for Lho oxhibiL, Lho curaLors in Taioi
havo boon Ioss obIiging. During Lwo yoars
of nogoLiaLions, Taiwanoso musoum
officiaIs insisLod LhaL Lhoy couId noL Iond
Lhoir orLion of Lho scroII, nor any of Lho
oLhor ,uu,uuu works in Lhoir coIIocLion,
unLiI Boijing onacLod a IogaIIy binding
guaranLoo againsL soizuro.
IL wasn`L ovon u for discussion," said
Chou Kung-shin, Lho dirocLor of Lho
NaLionaI PaIaco Musoum.
<A>GA:H% Lho dirocLor of Lho Zhojiang
ProvinciaI Musoum in Hangzhou,
which has ownod Lho smaIIor sIico of
Lho scroII sinco 16, said ho found Lho
Ioan arrangomonL somowhaL unsaLisfying.
I Lhink our musoum shouId havo Lho
righL Lo disIay Lho whoIo ainLing as
woII," ho said. If wo LruIy cannoL rosoIvo
Lhis boLwoon our Lwo musoums, I hoo
our govornmonLs wiII bo abIo Lo LackIo
Lho robIom."
AILhough Lho Lwo govornmonLs havo
Iargor issuos ovor which Lo LussIo, Lho roIo
of disuLod anLiquiLios in Lho roIaLionshi
cannoL bo ovorsLaLod.
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Essentials
Art
Increased cultural
and economic ties
have pleased many
Taiwanese business
leaders but have also
stoked anxiety.
67
Dwelling in the Fuchun Mountains
is ranked among Chinas 10 most
important paintings.
66-68 EssArt.indd 67 8/21/11 12:11:26 PM
IL hoIs Lo know LhaL noarIy Lho
onLiro conLonLs of Lho NaLionaI PaIaco
Musoum in Taioi woro broughL Lo
Taiwan from China by Chiang Kai-shok`s
NaLionaIisL forcos aL Lho ond of Lho civiI
war. Tho journoy of ono miIIion iLoms of
orcoIain, caIIigrahy, carvod jado and
gIazod oLLory, which IasLod 16 yoars and
covorod ,66 kiIomoLros, is ono of Lho
mosL oxLraordinary dramas of modorn
Chinoso hisLory.
Tho conLonLs of Lho ImoriaI PaIaco
musoum woro originaIIy carLod off in
133, jusL ahoad of Jaanoso soIdiors
bound for Boijing, buL Lho NaLionaIisLs
koL Lho roIics on Lho run from Mao
Zodong`s CommunisL forcos during four
yoars of civiI war boforo Lho bosL iocos
woro shiod across Lho sLraiL. IorLuno
was wiLh us; noL so much as a Loacu
was brokon,` Han Lih-wu, a Taiwanoso
ambassador who hoIod movo Lho
coIIocLion, onco LoId Ma^G^pRhkdMbf^l.
(A fow Lhousand craLos of Ioss iIIusLrious
Lroasuros woro IofL on a dock in Nanjing.)
Evon Lhough Mao mainLainod a
rofound disdain Loward China`s
anLiquiLios, ho sLiII koL Lho imoriaI
coIIocLion safo ovon as ho oncouragod
Rod Guards Lo smash and burn much of
China`s ancionL aLrimony. ThroughouL
Chinoso hisLory, cuILuraI roIics havo
symboIisod IogiLimacy and sovoroignLy,`
said Ho Chuan-hsing, chiof curaLor in Lho
doarLmonL of ainLing and caIIigrahy
aL Lho NaLionaI PaIaco Musoum. If you
ossossod Lhoso Lroasuros, you had Lho
righL Lo ruIo. As you can soo, noL much
has changod.`
MainIand officiaIs havo roconLIy Lonod
down Lhoir domands for Lho roLurn of
whaL Lhoy considor Lo bo sLoIon goods,
buL Lho sLaLo-run modia sLiII insisLs
on Iacing quoLaLion marks around
NaLionaI PaIaco Musoum as if Lo
quosLion iLs oxisLonco.
?HKGHP% musoum officiaIs in Taioi
aro savouring whaL Lhoy doscribo as
Lhoir King TuL momonL - a roforonco
Lo Lho bIockbusLor oxhibiL of EgyLian
anLiquiLios in Lho 1,us LhaL drow
rocord crowds Lo cuILuraI insLiLuLions
in Euroo and Lho UniLod SLaLos.
On mosL days, as many as 1u,uuu
ooIo Iino u Lo viow Lho rouniLod
scroII, as woII as somo of Lho moro
noLabIo coios, incIuding ono LhaL
fooIod QianIong, Lho Qing DynasLy
omoror who fanciod himsoIf a Ioarnod
arL connoissour.
Wang Rongcui, a LourisL from Lho
Chinoso ciLy of Ordos in Innor MongoIia,
was among Lhoso who roconLIy sonL a
haIf-hour waiLing for a gIimso of Huang
Gongwang`s masLorioco. Askod abouL
Lho oIiLicaI significanco of Lho oxhibiL,
Wang shruggod. Oh, I don`L know
anyLhing abouL oIiLics or Lhis arLy sLuff,
buL iL suro doos Iook nico,` sho said.
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CMYK
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Essentials
Art
It helps to know that nearly the entire
contents of the National Palace Museum in
Taipei were brought to Taiwan from China
by Chiang Kai-sheks Nationalist forces.
As many as 10,000 people line up
daily to see the reunited scroll at the
National Palace Museum in Taipei.
66-68 EssArt.indd 68 8/21/11 12:11:28 PM
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The humble backyard barbecue has been elevated into a culinary art
form by daring chefs around the world, reports Steven Raichlen.
INNOVATIVE
GRILLING
70-73 EssCuisine.indd 70 8/21/11 3:17:55 PM
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The humble backyard barbecue has been elevated into a culinary art
form by daring chefs around the world, reports Steven Raichlen.
INNOVATIVE
GRILLING
70-73 EssCuisine.indd 70 8/21/11 3:17:55 PM
September 2011
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Essentials
Cuisine
71
T
A>?BKLMMABG@RHNL>>
on onLoring EIckorIijc, PoLor
Do CIorcq`s rosLauranL in
MaIdogom, BoIgium, is a massivo griII
sowing sarks Iiko a bIasL furnaco in
Lho oon kiLchon. BuL whaL you smoII is
moro Lhan jusL smouIdoring oak, aIo or
chorry wood.
Do CIorcq Lossos handfuIs of whaL ho
caIIs firo sico - a bIond of coriandor
sood, junior borrios, oorcorns,
rosomary and oLhor horbs - onLo Lho
ombors Lo gonoraLo fragranL bIasLs of
sico smoko. Ho` II aIso Lhrow in oIivo
iLs from PorLugaI (oxcoIIonL for griIIing
voaI, ho says) and chis from barroIs of
kriok, BoIgian chorry boor, woII suiLod Lo
ouILry and ork.
In a sonso, griIIing is a monoIiLhic
cooking moLhod, roducing a simiIar LasLo
in ovoryLhing you cook ovor Lho firo,`
Do CIorcq said. Wo Iook Lo difforonLiaLo
oach dish by sicing noL jusL Lho moaL, buL
Lho firo.`
VicLor Arguinzoniz, Lho chof-ownor of
ELxobarri in Lho hiIIy Basquo counLrysido
boLwoon San SobasLian and BiIbao, Sain,
rofors Lo Lamo, noL fIavour, Lho firo. Ho
cooks Lho mosL doIicaLo foods imaginabIo
on caIibraLod griIIs ovor smaII mounds of
ombors moasurod aImosL Lo Lho coaI.
Tho griII`s vory unrodicLabiIiLy is whaL
aoaIs Lo chof PascaI BardoL aL AIain
Ducasso`s Louis XV, aL Lho HoLoI do Paris
in Monaco. And aL Lho oxorimonLaI
rosLauranLs MoLo and iNG in Chicago, Lho
griII ranks u Lhoro wiLh Lho Iiquid niLrogon
immorsion Lank as a LooI for innovaLion.
As burgors and sLoaks aro boing fIiod
on backyard griIIs Lhis soason, somo of Lho
worId`s Lo chofs aro finding sohisLicaLod
now ways of handIing Lhis ancionL,
Japanese-style short ribs on edible
charcoal prepared by Thomas Bowman.
70-73 EssCuisine.indd 71 8/21/11 3:17:55 PM
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De Clercq has written Belgiums first
barbecue book and won the World Barbecue
Championship in 2003, and now he hosts
grilling shows on Belgian television.
sorL of foiI aiIIoLo Do CIorcq dosignod
for sLoam-griIIing. Ior dossorL ho griIIs
BoIgian nougaL on Iong, sIondor skowors -
Lho IIomish vorsion of a s`moro.
Nobody noods Lo invonL a griIIing
LradiLion in Sain, whoro Lho asador, or
griII masLor, has Iong boon a fixLuro in
kiLchons. I grow u in a homo wiLhouL
gas or oIocLriciLy,` Arguinzoniz, 1, said.
My grandmoLhor did aII hor cooking on a
wood-burning hoarLh.`
IL was Lhoso chiIdhood momorios LhaL
ho Iongod Lo caLuro whon ho oonod
ELxobarri in Axo (ouIaLion 1uu) in 1u.
In 2uu, ho rocoivod a MichoIin sLar. In
ELxobarri`s kiLchon, IocaI oncina (hoIm oak)
is burnod down Lo bIazing ombors in wood-
burning ovons and usod for fuoIIing Lho
griIIs and smoko-roasLing. Tho rosLauranL
goos Lhrough abouL four Lonnos of wood
oach monLh. Arguinzoniz wincos aL Lho
noLion of roano or charcoaI. Tho onIy
fuoI worLh cooking ovor is wood,` ho said.
UnIiko Do CIorcq, ho usos no rubs,
sico asLos, marinados or barbocuo
saucos. Tho onIy soasonings LhaL couId
bo soon in Arguinzoniz`s kiLchon woro
fIour do soI and soa saIL. Ior basLing, ho
srays Lho food on Lho griII wiLh noLhing
moro Lhan oIivo or vogoLabIo oiI from
a sray boLLIo. Saucos aro mado on Lho
soL from juicos LhaL accumuIaLo on Lho
sorving IaLLor, omuIsifiod wiLh hoL oIivo
oiI sLirrod in wiLh Lho boLLom of a wiro
sLrainor. Tho rosuIL is undorsLaLod buL
inLonsoIy fIavourfuI.
oIomonLaI cooking moLhod. Thoy aro
among a now gonoraLion of griII masLors
whoso rovoIuLionary Lochniquos aro
rodofining Lho vory noLion of griIIing.
=><E>K<J found his assion for Iivo-
firo cooking oarIy. AL 14 ho griIIod sausagos
aL sLrooL fairs in Lho BoIgian soasido Lown
of Knokko-HoisL. Sinco Lhon, ho has
wriLLon BoIgium`s firsL barbocuo book and
won Lho WorId Barbocuo Chamionshi in
2uu3, and now ho hosLs griIIing shows on
BoIgian LoIovision.
Ioundod as a simIo cho houso in
1u, EIckorIijc has ovoIvod inLo a sLyIish
1uu-soaL rosLauranL LhaL draws aLrons
from aII ovor Euroo. Now, as Lhon, Lho
wood ombor-fuoIIod griII romains Lho
rosLauranL`s focaI oinL. CharcoaI has Lho
LasLo burnod ouL of iL,` Do CIorcq, 41, said.
You can`L boaL Lho fIavour of wood.`
BoIgium doos noL havo a griIIing
LradiLion, so Do CIorcq soL ouL Lo croaLo
ono. Ho griIIs haricoLs vorLs wraod in
smokoy IocaI BroydoI bacon. Ho simmors
kriok boor Lo mako a chorry-fIavourod
Loriyaki gIazo. BoIgium`s boIovod mussoIs
como griIIod wiLh horbs in a 'Q bag` - a
De Clercq is among a new generation
of grill masters whose revolutionary
techniques are redefining the very
notion of grilling.
70-73 EssCuisine.indd 72 8/21/11 3:17:57 PM
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Thanks Lo somo of his moro offboaL
croaLions (ombor-griIIod soa cucumbor,
griIIod ocLous so Liny Lhoy`ro handIod
wiLh Lwoozors or a sou mado wiLh griIIod
oa ods), Arguinzoniz has boon doscribod
as Lho Iorran Adria of Lho griII. BuL ho`s
a uro cIassicisL whon iL comos Lo fIavour.
I don`L Iiko a IoL of sicos or condimonLs,`
ho said. My goaI is Lo rosorvo and
conconLraLo Lho fIavour of oach food.`
IL`s a sonLimonL LhaL rosonaLos wiLh
BardoL, Lho 3-yoar-oId oxocuLivo chof
aL Lo Louis XV. DosiLo our sLaLus as
a MichoIin Lhroo-sLar, our cuisino is vory
LradiLionaI - iL`s rusLic, aImosL oasanL,` ho
said. IL connoLos summor, Lho ouLdoors,
Lho Ioasuro of sharing wiLh frionds.
Horo aL AIain Ducasso, wo`ro aII
abouL fIavour,` BardoL conLinuod. GriIIing
givos you a LasLo you simIy can`L goL
anywhoro oIso.` In Lho Louis XV kiLchon,
Lho griIIing is dono on a air of vinLago
Labosso Giraudon MoILoni griIIs insLaIIod
moro Lhan a haIf-conLury ago. Ior fuoI,
BardoL rofors naLuraI Ium charcoaI
mado from booch. Wood hoaLs unovonIy,
and iL Lakos a Iong Limo Lo burn iL down Lo
ombors,` ho said. WiLh charcoaI you goL a
good, ovon cooking surfaco aII aL onco.`
So whaL`s on Lho griII Lhoso days aL
Lo Louis XV? RighL now wo`ro griIIing
wiId saImon from Lho Adour, sorvod wiLh
a shorry vinogar roducLion, and baby
Iamb from Lho Pyronoos marinaLod wiLh
summor savoury and osoIoLLo oor,`
BardoL said. Ho aIso rizos Lho high,
dry hoaL of Lho griII for vogoLabIos - Iiko
radicchio, which Lho chof soasons wiLh
oIivo asLo and anchovios.
?HKAHF:KH CanLu, ono of Lho mosL
IayfuI, forward-Lhinking chofs in Lho
US, griIIing is orfocLIy comaLibIo wiLh
modornisL cooking. You` II aIways find
barbocuo on my monu,` said CanLu, 3,
Lho chof of Lho rosLauranLs MoLo and Lho
roconLIy oonod iNG in Chicago. Tuckod
away in iNG`s basomonL kiLchon, amid Lho
ossonLiaI oiI oxLracLor and Lhormo scaIabIo
ovon, is a cusLom-buiIL, 12-gaugo navaI
sLooI wood-burning griII LhaL wouId mako
any Toxan fooI righL aL homo.
RoconL offorings aL iNG incIudo
ocorn uffod on a wood-burning griII
and soasonod wiLh cidor vinogar;
griIIod saImon sorvod undor a boII jar
fiIIod wiLh wood smoko; and Londor,
smokoy baby back ribs skoworod on
sIondor ioLLos of a warm broLhy
ossonco of barbocuo sauco. (Tako a biLo
of moaL, Lhon squirL Lho sauco in your
mouLh,` a waiLor suggosLod.)
CanLu usos Lho smokor aL MoLo
and Lho wood-burning griII aL iNG in vory
difforonL ways from a LyicaI griII masLor.
Ior sLarLors, wo don`L griII anyLhing from
sLarL Lo finish.` InsLoad, CanLu and crow
mighL uso Lho hoL griII Lo cris Lho oxLorior
of an-friod quaiI or add a Iayor of smoko
fIavour Lo a Iamb T-bono.
Ior Lho Jaanoso barbocuo` aL iNG,
Thomas Bowman, 28, Lho oxocuLivo chof,
braisos monsLor boof shorL ribs, oach
woighing a haIf a kiIogram, for 3 hours
in a mixLuro of soy sauco, rico vinogar,
brown sugar, garIic and Iomon grass. JusL
boforo boing sorvod, Lho ribs aro griIIod
ovor bIazing chorry wood, imarLing a
cris, charrod crusL and an inviLing whiff
of wood smoko.
Ho and CanLu aIso burn wood for Iow-
LomoraLuro smoking. Wo`II curo a boof
boIIy wiLh fish sauco, cano sugar, ciIanLro
and oLhor VioLnamoso soasonings,` CanLu
said. Thon wo`II smoko iL aL 188 dogroos
for 12 hours. IL comos ouL comIoLoIy
sofL and wiLhouL LoxLuro.` (In iNG worId,
Lhis is a good Lhing, aIIowing Lho chof Lo
imoso Lho LoxLuro ho dosiros aL Lho ond.)
Tho mosL singuIar dish aL iNG may woII
bo an oxymoronic LwisL on whaL mosL griII
masLors uso as fuoI: odibIo charcoaI.`
To mako iL, wo whiLLIo a songy whiLo
broad inLo chunks shaod Iiko Ium
charcoaI,` CanLu oxIainod. Wo dyo iL
wiLh squid ink and fIavour iL wiLh Asian
soasonings, Lhon wo an-fry iL cris in
vogoLabIo oiI.` Liko aII good charcoaI,
iNG`s comos wiLh a IighL dusLing of whiLo
ash - achiovod by Iunging Lho bIack
charcoaI Iums in Iiquid niLrogon.
A barbocuo shouId bo momorabIo,`
CanLu said. EaLing charcoaI is an
oxorionco you` II novor forgoL.`
Thomas Bowman, the chef at iNG
in Chicago, doesnt grill anything
from start to finish. His beef ribs are
braised and only grilled for a short
time to impart a crust.
70-73 EssCuisine.indd 73 8/21/11 3:17:58 PM
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A low-cost robot hand, developed
by SRI International, has a touch
sensitive skin derived from a
smartphone touchscreen.
74-77 EssTech.indd 74 8/21/11 3:19:32 PM
MA>KH;HMB<LIBHG>>KKH=G>R
Brooks ofLon bogins soochos by
roaching inLo his ockoL, fiddIing wiLh
somo Iooso chango, finding a quarLor,
uIIing iL ouL and LwirIing iL in his
fingors. Tho Lask roquiros hardIy any
LhoughL. BuL as Brooks oinLs ouL,
Lraining a roboL Lo do iL is a vasLIy
hardor robIom for arLificiaI inLoIIigonco
rosoarchors Lhan IBM`s coIobraLod
vicLory on C^hiZk]r Lhis yoar wiLh a
roboL namod WaLson.
Though roboLs havo mado groaL
sLridos in manufacLuring, whoro Lasks
aro rooLiLivo, Lhoy aro sLiII no maLch for
humans, who can gras Lhings and movo
abouL offorLIossIy in Lho hysicaI worId.
Dosigning a roboL Lo mimic Lho basic
caabiIiLios of moLion and orcoLion
wouId bo rovoIuLionary, rosoarchors say,
wiLh aIicaLions sLroLching from caro
for Lho oIdorIy Lo roLurning ovorsoas
manufacLuring ooraLions Lo Lho WosLorn
counLrios (aIboiL wiLh fowor workors).
YoL Lho chaIIongos romain immonso, far
highor Lhan arLificiaI inLoIIigonco hurdIos
Iiko soaking and hoaring.
AII Lhoso robIoms whoro you wanL Lo
duIicaLo somoLhing bioIogy doos, such as
orcoLion, Louch, Ianning or grasing,
Lurn ouL Lo bo hard in fundamonLaI ways,`
said Gary Bradski, a vision sociaIisL aL
WiIIow Garago, a roboL dovoIomonL
comany basod in CaIifornia`s SiIicon
VaIIoy. IL`s aIways surrising, bocauso
humans can do so much offorLIossIy.`
Now Lho Dofonso Advancod Rosoarch
ProjocLs Agoncy, or DARPA, Lho
PonLagon offico LhaL hoIod jum-
sLarL Lho firsL gonoraLion of arLificiaI
inLoIIigonco rosoarch in Lho 16us, is
undorwriLing Lhroo comoLing offorLs
Lo dovoIo roboLic arms and hands ono-
LonLh as oxonsivo as Loday`s sysLoms,
which ofLon cosL $1uu,uuu or moro.
In Juno ProsidonL Barack Obama
LravoIIod Lo Carnogio MoIIon UnivorsiLy in
PiLLsburgh Lo unvoiI a $uu miIIion offorL
Lo croaLo advancod roboLic LochnoIogios
noodod Lo hoI bring manufacLuring back
Lo Lho US. BuL Iowor-cosL comuLor-
conLroIIod mochanicaI arms and hands aro
onIy Lho firsL sLo.
Thoro is sLiII significanL dobaLo abouL
how ovon Lo bogin Lo dosign a machino
LhaL mighL bo fIoxibIo onough Lo do
many of Lho Lhings humans do: foId
Iaundry, cook or wash dishos. ThaL wiII
roquiro a broakLhrough in sofLwaro LhaL
mimics orcoLion.
Today`s roboLs can ofLon do ono of
Lhoso Lasks in IimiLod circumsLancos,
buL rosoarchors doscribo Lhoir skiIIs as
briLLIo`. Thoy faiI if Lho LiniosL chango
is inLroducod. Moroovor, Lhoy musL bo
rorogrammod in a cumborsomo fashion
Lo do somoLhing oIso.
Many roboLics rosoarchors aro ursuing
a boLLom-u aroach, hoing LhaL by
Lraining roboLs on ono Lask aL a Limo,
Lhoy can buiId a Iibrary of Lasks LhaL wiII
uILimaLoIy mako iL ossibIo for roboLs
Lo bogin Lo mimic humans. OLhors
aro scoLicaI, saying LhaL LruIy usofuI
machinos awaiL an arLificiaI inLoIIigonco
broakLhrough LhaL yioIds vasLIy moro
fIoxibIo orcoLion.
MA>EBFBMLof Loday`s mosL
sohisLicaLod roboLs can bo soon in
a LowoI-foIding domonsLraLion LhaL
a grou of sLudonLs aL Lho UnivorsiLy
of CaIifornia, BorkoIoy, osLod on
Lho inLornoL IasL yoar: In sooky,
anLhroomorhic fashion, a roboL
dofLIy foIds a sorios of LowoIs, oyoing Lho
cornors, smooLhing ouL wrinkIos and
noaLIy sLacking Lhom in a iIo. IL is onIy
whon Lho viowor Ioarns LhaL Lho vidoo is
shown aL u Limos normaI sood LhaL Lho
September 2011
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Simple human tasks that require motion and perception are incredibly
challenging for robots. The race is now on to develop better and cheaper
robot arms and hands, reports John Markoff.
ROBOTS
More Like Us
74-77 EssTech.indd 75 8/21/11 3:19:32 PM
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CMYK
76
Essentials
Technology
moagro oxLonL of Lho roboL`s caabiIiLios
bocomos aaronL. (Tho sLudonLs
acknowIodgod Lhis sring LhaL Lhoy woro
onIy now boginning Lo LackIo Lho furLhor
chaIIongos of foIding shirLs and socks.)
Evon Lho mosL ambiLious and oxonsivo
roboL arm rosoarch has noL yoL yioIdod
imrossivo rosuILs. In Iobruary, for
oxamIo, RobonauL 2, a doxLorous roboL
dovoIood in a arLnorshi boLwoon NASA
and GonoraI MoLors, was carriod aboard
a saco shuLLIo mission Lo bo insLaIIod
on Lho InLornaLionaI Saco SLaLion.
Tho dovoIoors acknowIodgod LhaL Lho
sofLwaro roquirod by Lho sysLom, which is
humanoid-shaod from Lho Lorso u, was
unfinishod and LhaL Lho roboL was sonL
u Lhon onIy bocauso a raro Iaunching
window was avaiIabIo.
Wo`ro in a funny chickon-and-ogg
siLuaLion,` Brooks said. No ono roaIIy
knows whaL sonsors or orcoLuaI
aIgoriLhms Lo uso bocauso wo don`L havo
a working hand, and bocauso wo don`L
havo a grasing sLraLogy nobody can figuro
ouL whaL kind of hand Lo dosign.`
Brooks is aIso LackIing Lho robIom:
In 2uu8 ho foundod HoarLIand RoboLics,
a BosLon-basod comany LhaL is inLonL
on buiIding a gonoraLion of Iow-cosL
roboLs. And Lho Lhroo comoLing offorLs
Lo dovoIo roboLic arms and hands wiLh
DARPA financing - aL SRI InLornaLionaI,
Sandia NaLionaI LaboraLorios and iRoboL
- offor somo roasons for oLimism.
K><>GMER:M an SRI InLornaLionaI
IaboraLory, Lwo SLanford UnivorsiLy graduaLo
sLudonLs, John UImon and Dan Aukos, uL
Lho finishing Louchos on a significanL sLo
Loward human caabiIiLios: a four-fingor
hand LhaL wiII gras wiLh a human`s rociso
sonso of Louch. Each Lhroo-joinLod fingor
is mado in a singIo manufacLuring sLo by
a Lhroo-dimonsionaI rinLor and is Lhon
covorod wiLh 'skin` dorivod from Lho samo
A goalkeeper robot in action at the
RoboCup 2011 in Istanbul. Motion and
perception pose two difficult problems
for Artificial Intelligence.
President Barack Obama unveiled a $500 million effort to create advanced robotic
technologies at Carnegie Mellon University.
Many robotics
researchers are pursuing
a bottom-up approach,
hoping that by training
robots on one task at
a time, they can build
a library of tasks that
will ultimately make it
possible for robots to
begin to mimic humans.
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74-77 EssTech.indd 76 8/21/11 3:19:37 PM
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Look, Perceive, Fold Researchers are training robots to perform complicated tasks on variable materials. Below, a robot was programmed to recognize and fold towels using stereo cameras and two gripping arms.
EXAMINE PILE A stereo camera
mounted on the robots head
looks for a central point of a
towel lying in a pile. The robot
grabs the center with one arm.
DETECT CORNERS The robot
lifts, shakes and rotates the
towel, using an algorithm to
try to visually locate and
grasp two adjacent corners.
UNTWIST The robot pulls the
towel taut several times. If the
robot sees that the towel is
twisted, it rotates its grips until
the towel hangs without twists.
LAY FLAT The robot grasps the
towel with a short side up,
adjusting its grip if needed, and
pulls the towel across the edge
of the table and lays it flat.
FOLD Cameras estimate the
towels size and position,
allowing the robot to fold the
towel in half by aligning the top
and bottom corners.
FOLD AGAIN The robot
changes grips and repeats the
flattening and folding process a
second time, neatly folding the
towel into quarters.
STACK The robot adds the
towel to a folded stack, then
returns to the pile and begins
again.
THE NEW YORK TIMES; PHOTOS COURTESY OF U.C. BERKELEY Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
N.Y. Times News Service
Date: 07/19/11
Graphic Slug: ROBOTS-MARKOFF-NSPR
Size: 11.5 x 2.5
With Story: (BC--ROBOTS-MARKOFF-NSPR--NYT)
Source: Jeremy Maitin-Shepard, Marco Cusumano-Towner, Jinna Lei and Pieter Abbeel, University of California, Berkeley
September 2011
77
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Essentials
Technology
maLoriaI usod Lo mako Lho Louch-sonsiLivo
disIays on smarLhonos.
ParL of whaL wo`ro riding on is LhaL Lhoro
has boon a vory sLrong ush for LacLiIo
disIays bocauso of smarLhonos,` said
PabIo Garcia, an SRI roboL dosignor who
is Ioading Lho dosign of Lho rojocL, aIong
wiLh RoborL BoIIos, an arLificiaI inLoIIigonco
rosoarchor. Wo`vo Lakon advanLago of Lhoso
LochnoIogios,` Garcia wonL on, and wo`ro
banking on Lho facL Lhoy wiII conLinuo Lo
ovoIvo and bo mado ovon choaor.`
SLiII Iacking is a gonoraLion of sofLwaro
LhaL is oworfuI and fIoxibIo onough Lo
do Lasks LhaL humans do offorLIossIy.
ThaL wiII roquiro a broakLhrough in
machinos` orcoLion. I wouId say Lhis
is moro difficuIL Lhan whaL Lho WaLson
machino had Lo do,` said GiII PraLL, Lho
comuLor scionLisL who is Lho rogrammo
managor in chargo of DARPA`s
AuLonomous RoboL ManiuIaLion
rojocL, caIIod ARM. Tho worId is
comosod of conLinuous objocLs LhaL
havo various shaos LhaL can obscuro ono
anoLhor,` ho said. A orcoLion sysLom
noods Lo figuro Lhis ouL, and iL noods Lho
common sonso of a chiId Lo do LhaL.`
:MPBEEHP Garago, Bradski and a
grou of arLificiaI inLoIIigonco rosoarchors
and roboLicisLs havo focusod on
hackaLhons,` in which Lho comany`s PR2
roboL has boon rogrammod Lo do Lasks
Iiko foLching drinks from a rofrigoraLor,
Iaying ooI and acking grocorios.
In May, wiLh suorL from Lho WhiLo
Houso Offico of Scionco and TochnoIogy
PoIicy, Bradski hoIod organiso Lho firsL
SoIuLions in PorcoLion ChaIIongo. A rizo
of $1u,uuu is offorod for Lho firsL Loam Lo
dosign a roboL LhaL is abIo Lo rocogniso 1uu
iLoms commonIy found on Lho shoIvos of
suormarkoLs and harmacios. ParL of Lho
rizo wiII bo givon Lo Lho firsL Loam whoso
roboL can rocogniso 8u or conL of Lho iLoms.
AL Lho conLosL, hoId during a roboLics
conforonco in Shanghai, nono of Lho
conLosLanLs roachod Lho 8u or conL goaI.
Tho Loam LhaL did bosL was Lho Iaundry-
foIding Loam from BorkoIoy, which has
namod iLs roboL BroLL, for BorkoIoy RoboL
for Lho EIiminaLion of Todious Tasks. BroLL
was abIo Lo rocogniso 68 or conL of a
smaIIor grou of u objocLs. And Lho Loam
has mado rogross in iLs quosL Lo buiId
a machino Lo do Lho Iaundry; iL roconLIy
osLod a now vidoo showing how much
iL has sod u Lho roboL. Our ond goaI
righL now is Lo do an onLiro Iaundry cycIo,`
said PioLor AbbooI, a BorkoIoy comuLor
scionLisL who Ioads Lho grou, from dirLy
Iaundry in a baskoL Lo ovoryLhing sLackod
away afLor iL`s boon washod and driod.`
No one really knows
what sensors or
perceptual algorithms
to use because we
dont have a working
hand, and because we
dont have a grasping
strategy nobody can
figure out what kind
of hand to design.
Researchers are
training robots to
perform complicated
tasks on variable
materials. Below, a
robot was programmed
to recognise and fold
towels using stereo
cameras and two
gripping arms.
centre
74-77 EssTech.indd 77 8/21/11 3:19:38 PM
Portfolio
CMYK
78
Essentials
Environment
Managing the Yellow River
Its digital management system is a wonder, but with communities battling over water
use theres a long way to go before China's second-largest river is off life-support,
reports Jonathan Watts.
O
GHG>P:EEH?MA> conLroI
conLro, a mosaic of TV scroons
fIickors back and forLh boLwoon
Lho IaLosL saLoIIiLo hoLograhs and rainfaII
rojocLions. On anoLhor, a hugo scroon
Lracks Lho onLiro IongLh of Lho YoIIow rivor
- China`s socond-IongosL waLorway - wiLh
roaI-Limo daLa from dozons of moniLoring
sLaLions showing fIow sood, oIIuLion IovoIs
and rosorvoir voIumos.
Tho ooraLion cIosoIy moniLors Lho
ouLfIow voIumos from oach of Lho nino
rovincos LhaL bordor China`s 'moLhor
rivor`, and docidos whoLhor Lhoy aro
on courso Lo mooL monLhIy LargoLs. A
sohisLicaLod soL of rivor conLroIs aIIows
onginoors Lo inLorvono by ooning or
cIosing a high-Loch noLwork of auLomaLod
sIuico gaLos and moniLoring dovicos. This
givos Lhom romoLo conLroI ovor aImosL aII
downsLroam divorsions of Lho waLor for
agricuILuro and indusLry aIong iLs ,464
kiIomoLro IongLh.
Tho sysLom aIso aIIows onginoors Lo fIush
bad oIIuLion siIIs Lhrough Lho sysLom
moro quickIy, which has conLribuLod -
aIong wiLh oconomic, IogaI and oIicy
changos - Lo Lho imrovomonL in waLor
quaIiLy and quanLiLy on Lho main rivor.
Now Chinoso hydroonginoors aro
ombarking on a Ian Lo ugrado Lho
'digiLaI YoIIow rivor` - whaL Lhoy cIaim is
Lho worId`s mosL advancod waLor-raLioning
sysLom - Lo Lry Lo savo ono of Lho mosL
ovorworkod waLorways on Lho IanoL from
droughL, oIIuLion and Lho unsusLainabIo
Water usage along the 5,464 kilometre length of the Yellow
river is centrally controlled through automated sluice gates
and monitoring devices. Here, water and sand is sluiced
from the Xiao Lang Di Dam in Henan Province.


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78-81 Yellow River.indd 78 8/21/11 1:29:34 PM
Portfolio
CMYK
78
Essentials
Environment
Managing the Yellow River
Its digital management system is a wonder, but with communities battling over water
use theres a long way to go before China's second-largest river is off life-support,
reports Jonathan Watts.
O
GHG>P:EEH?MA> conLroI
conLro, a mosaic of TV scroons
fIickors back and forLh boLwoon
Lho IaLosL saLoIIiLo hoLograhs and rainfaII
rojocLions. On anoLhor, a hugo scroon
Lracks Lho onLiro IongLh of Lho YoIIow rivor
- China`s socond-IongosL waLorway - wiLh
roaI-Limo daLa from dozons of moniLoring
sLaLions showing fIow sood, oIIuLion IovoIs
and rosorvoir voIumos.
Tho ooraLion cIosoIy moniLors Lho
ouLfIow voIumos from oach of Lho nino
rovincos LhaL bordor China`s 'moLhor
rivor`, and docidos whoLhor Lhoy aro
on courso Lo mooL monLhIy LargoLs. A
sohisLicaLod soL of rivor conLroIs aIIows
onginoors Lo inLorvono by ooning or
cIosing a high-Loch noLwork of auLomaLod
sIuico gaLos and moniLoring dovicos. This
givos Lhom romoLo conLroI ovor aImosL aII
downsLroam divorsions of Lho waLor for
agricuILuro and indusLry aIong iLs ,464
kiIomoLro IongLh.
Tho sysLom aIso aIIows onginoors Lo fIush
bad oIIuLion siIIs Lhrough Lho sysLom
moro quickIy, which has conLribuLod -
aIong wiLh oconomic, IogaI and oIicy
changos - Lo Lho imrovomonL in waLor
quaIiLy and quanLiLy on Lho main rivor.
Now Chinoso hydroonginoors aro
ombarking on a Ian Lo ugrado Lho
'digiLaI YoIIow rivor` - whaL Lhoy cIaim is
Lho worId`s mosL advancod waLor-raLioning
sysLom - Lo Lry Lo savo ono of Lho mosL
ovorworkod waLorways on Lho IanoL from
droughL, oIIuLion and Lho unsusLainabIo
Water usage along the 5,464 kilometre length of the Yellow
river is centrally controlled through automated sluice gates
and monitoring devices. Here, water and sand is sluiced
from the Xiao Lang Di Dam in Henan Province.


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sLyIo conLraIisod conLroI and modorn
markoL ca-and-Lrado mochanisms.
Tho chango is ovidonL aL Lho YoIIow
Rivor Consorvancy Commission (YRCC)
in Zhongzhou, which is Lho command
conLro for Lho waLorway`s managors.
In 1,, Lho YoIIow rivor symboIisod
ovoryLhing LhaL was wrong wiLh China`s
onvironmonL: 4u or conL of iLs waLors woro
off Lho scaIo for oIIuLion, and Lho Iowor
roachos woro so chokod wiLh sodimonL LhaL
Lho rivor bod sLood sovoraI moLros abovo
Lho surrounding farmIand, raising Lho risks
of fIoods. BuL Lho biggosL robIom was
soomingIy LorminaI dormancy. Tho rivor
was so ovoroxIoiLod LhaL iL faiIod Lo roach
Lho soa for 226 days a yoar.
Sinco Lhon, howovor, Lho fIow has boon
unbrokon, and IasL yoar Lho baskoL-caso
rivor bocamo an award-winning modoI
whon Lho YRCC won Lho Loo Kwan Yu
WaLor rizo in Singaoro. ILs hoad, Li
Guoying, was romoLod Lo naLionaI vico-
minisLor for waLor rosourcos. ILs digiLaI
conLroI sysLom is now boing omuIaLod on
oLhor sLrossod rivors, incIuding Lho TaIimu
in Xinjiang, Lho Hoi in Qinghai, and Lho
Dong in Guangdong.
Tho Eurooan Union, which has a
Loam working wiLh Lho commission, said
Lho award was woII dosorvod. IL`s an
achiovomonL. Tho waLor runs Lo Lho soa
again,` said PauI van MooI, Loam Ioador on
Lho EU-China Rivor Basin ManagomonL
Programmo, which is working wiLh Lho
commission. This is Lhanks Lo Lho conLraI
conLroI. This is a uniquo way Lo manago a
rivor on such a Iargo scaIo.`
Loading consorvaLionisLs, incIuding
formorIy fiorco criLics of Lho YoIIow
rivor`s managomonL, havo aIso Iaudod Lho
imrovomonL, Lhough Lhoy omhasiso LhaL
moro noods Lo bo dono.
I arociaLo Lho chango of mindsoL of Lho
YoIIow rivor commission from conquoring
naLuro Lo romoLing Lho hoaILhy Iifo of
Lho rivor. Tho digiLaI conLraIisod conLroI
domands of a surging oconomy.
Tho Ian, which bogins IaLor Lhis yoar,
is a major onhancomonL of an aIroady
advancod managomonL sysLom LhaL has
hoIod Lo rovorso Lho docIino of China`s
socond-biggosL rivor ovor Lho asL 1u yoars.
Ior mosL of Lho asL 3u yoars, Lho
Chinoso govornmonL has focusod on
onginoorod soIuLions Lo Lho counLry`s
waLor robIoms LhaL incroaso suIy.
Whon waLor ran ouL or bocamo oIIuLod,
Lhoy driIIod dooor woIIs or buiIL Iongor
divorsion channoIs Lo La frosh rosourcos.
;NMMA> YoIIow rivor, which has boon
Lho main arLory of Chinoso civiIisaLion
for Lhousands of yoars, has shown
Lho IimiLaLions of LhaL aroach and
forcod a difforonL way of Lhinking LhaL
bIonds scionco, consorvaLion, oId-
78-81 Yellow River.indd 79 8/21/11 1:29:35 PM
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is a wondor,` said Ma Jun, foundor of Lho
InsLiLuLo for PubIic and EnvironmonLaI
Affairs NGO. BuL Lho rivor is far from
boing rovivod. By kooing a minimum
fIow wo koo iL from dying. BuL iLs onco
vibranL and rich ocosysLom is damagod by
Lho consLrucLion of cascado dams and Lho
onsuing ovoroxIoiLaLion of rosourcos and
incroasingIy by waLor oIIuLion.`
MA>F:BG ouLsLanding chaIIongo is
onforcing Lho fair disLribuLion of scarco
waLor rosourcos among Lho nino rovincos
LhaL sharo Lho rivor. AIIocaLions can
mako Lho difforonco boLwoon woaILh and
ovorLy. This is ovidonL aL Liang viIIago in
Honan rovinco. AILhough Lho cornfioIds
horo aro jusL 1u kiIomoLros from Lho
YoIIow rivor and XiaoIangdi rosorvoir -
ono of China`s biggosL - Lhoy aro drying
u bocauso Lho farmors havo aImosL no
waLor-uso righLs. ULLorIy doondonL on
rainfaII for irrigaLion, Lho viIIagors aro
imovorishod and insocuro. This yoar, Lhoy
aro sufforing from Lho worsL droughL in
docados, which wiII ruin Lho summor cro
if iL conLinuos for jusL ono moro wook. BuL
Honan has usod iLs quoLa oIsowhoro.
Wo havo askod Lho govornmonL for
hoI buL Lhoy say Lhoro is a scarciLy ovon
of drinking waLor for Lho ciLios, so Lhoy
cannoL saro anyLhing for our cros,`
said Lho douLy hoad of Lho viIIago, Lu
Kashong. Wo havo drawn u Ians Lo driII
a 4uu-moLro woII buL iL wiII cosL ,uu,uuu
yuan (|68,uuu), so wo nood financiaI hoI
as woII as arovaI from Lho govornmonL.`
Tho viIIagors goL drinking waLor for onIy a
fow hours ovory Lwo days.
ProorLions for Lho rovincos havo boon
fixod sinco 18,, basod on Lho avorago
annuaI run-off boLwoon 11 and 1, of
8 biIIion cubic moLros. ThaL has rovod
woofuIIy oLimisLic. Duo Lo Lho damming
of LribuLarios, Lho sroad of ciLios and
cIimaLo chango, Lho voIumo sIumod
IasL yoar Lo 46 biIIion cubic moLros.
Provincos aro suosod Lo oquaIIy sharo
Lho shorLfaII. YoL Lho usLroam rogions of
Ningxia and Innor MongoIia Lako moro
Lhan ono biIIion cubic moLros of waLor
abovo aIIocaLion ovory yoar.
Tho Iosors aro groundwaLor suIios
and ocosysLoms, arLicuIarIy woLIands.
TwonLy-ono biIIion cubic moLros aro
suosod Lo bo soL asido for sodimonL
fIushing and mainLonanco of non-human
Iifo on Lho rivor. BuL Lhis is Lho aroa of
Lho waLor budgoL LhaL is raidod whon
rovincos go ovor Lhoir IimiL.
This wiII bo arLIy addrossod IaLor Lhis
yoar whon onginoors bogin insLaIIing Lho
socond sLago of Lho rojocL, which wiII forco
rocaIciLranL usLroam rovincos Lo codo
conLroI ovor waLor-divorsion sIuico gaLos.
Tho now sysLom is curronLIy boing dosignod
by Lho commission and Tsinghua UnivorsiLy.
Onco iL is comIoLod Lhroo yoars from
now, Lho onginoors in Zhongzhou say
Lhoy wiII havo romoLo conLroI ovor u or
conL of Lho rivor`s Las for agricuILuro and
indusLry. Wo aro Lrying Lo rosoIvo Lho
conLradicLions boLwoon Lho rovincos by
coordinaLing waLor uso,` says Poi Yong,
dirocLor of Lho waLor roguIaLion division.
Workers celebrate the compeletion of the
first tunnel across the Yellow River on
December 22, 2009 in China. The tunnels
completion marks a breakthrough in the
central line of Chinas gigantic South-
North Water Diversion Project.
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is a wondor,` said Ma Jun, foundor of Lho
InsLiLuLo for PubIic and EnvironmonLaI
Affairs NGO. BuL Lho rivor is far from
boing rovivod. By kooing a minimum
fIow wo koo iL from dying. BuL iLs onco
vibranL and rich ocosysLom is damagod by
Lho consLrucLion of cascado dams and Lho
onsuing ovoroxIoiLaLion of rosourcos and
incroasingIy by waLor oIIuLion.`
MA>F:BG ouLsLanding chaIIongo is
onforcing Lho fair disLribuLion of scarco
waLor rosourcos among Lho nino rovincos
LhaL sharo Lho rivor. AIIocaLions can
mako Lho difforonco boLwoon woaILh and
ovorLy. This is ovidonL aL Liang viIIago in
Honan rovinco. AILhough Lho cornfioIds
horo aro jusL 1u kiIomoLros from Lho
YoIIow rivor and XiaoIangdi rosorvoir -
ono of China`s biggosL - Lhoy aro drying
u bocauso Lho farmors havo aImosL no
waLor-uso righLs. ULLorIy doondonL on
rainfaII for irrigaLion, Lho viIIagors aro
imovorishod and insocuro. This yoar, Lhoy
aro sufforing from Lho worsL droughL in
docados, which wiII ruin Lho summor cro
if iL conLinuos for jusL ono moro wook. BuL
Honan has usod iLs quoLa oIsowhoro.
Wo havo askod Lho govornmonL for
hoI buL Lhoy say Lhoro is a scarciLy ovon
of drinking waLor for Lho ciLios, so Lhoy
cannoL saro anyLhing for our cros,`
said Lho douLy hoad of Lho viIIago, Lu
Kashong. Wo havo drawn u Ians Lo driII
a 4uu-moLro woII buL iL wiII cosL ,uu,uuu
yuan (|68,uuu), so wo nood financiaI hoI
as woII as arovaI from Lho govornmonL.`
Tho viIIagors goL drinking waLor for onIy a
fow hours ovory Lwo days.
ProorLions for Lho rovincos havo boon
fixod sinco 18,, basod on Lho avorago
annuaI run-off boLwoon 11 and 1, of
8 biIIion cubic moLros. ThaL has rovod
woofuIIy oLimisLic. Duo Lo Lho damming
of LribuLarios, Lho sroad of ciLios and
cIimaLo chango, Lho voIumo sIumod
IasL yoar Lo 46 biIIion cubic moLros.
Provincos aro suosod Lo oquaIIy sharo
Lho shorLfaII. YoL Lho usLroam rogions of
Ningxia and Innor MongoIia Lako moro
Lhan ono biIIion cubic moLros of waLor
abovo aIIocaLion ovory yoar.
Tho Iosors aro groundwaLor suIios
and ocosysLoms, arLicuIarIy woLIands.
TwonLy-ono biIIion cubic moLros aro
suosod Lo bo soL asido for sodimonL
fIushing and mainLonanco of non-human
Iifo on Lho rivor. BuL Lhis is Lho aroa of
Lho waLor budgoL LhaL is raidod whon
rovincos go ovor Lhoir IimiL.
This wiII bo arLIy addrossod IaLor Lhis
yoar whon onginoors bogin insLaIIing Lho
socond sLago of Lho rojocL, which wiII forco
rocaIciLranL usLroam rovincos Lo codo
conLroI ovor waLor-divorsion sIuico gaLos.
Tho now sysLom is curronLIy boing dosignod
by Lho commission and Tsinghua UnivorsiLy.
Onco iL is comIoLod Lhroo yoars from
now, Lho onginoors in Zhongzhou say
Lhoy wiII havo romoLo conLroI ovor u or
conL of Lho rivor`s Las for agricuILuro and
indusLry. Wo aro Lrying Lo rosoIvo Lho
conLradicLions boLwoon Lho rovincos by
coordinaLing waLor uso,` says Poi Yong,
dirocLor of Lho waLor roguIaLion division.
Workers celebrate the compeletion of the
first tunnel across the Yellow River on
December 22, 2009 in China. The tunnels
completion marks a breakthrough in the
central line of Chinas gigantic South-
North Water Diversion Project.
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Essentials
Environment
Chinese environment protection workers examine the
water quality at the bank of the Yellow River in Jinan.
Demand for water in northern China
continues to grow faster than efficiency
gains. As a result, environmental pressure
has shifted from the Yellow river to its
tributaries which are increasingly polluted
and underground aquifers, which are
diminishing at an alarming rate.
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- Lho worId`s biggosL hydroonginooring
rojocL. Onco comIoLod, Lho Iannod
wosLorn Iog of Lho schomo wiII La waLor
from high on Lho TiboLan PIaLoau Lo
roIonish Lho YoIIow cIoso Lo iLs sourco.
This wiII bo LochnicaIIy difficuIL, oIiLicaIIy
conLrovorsiaI and hugoIy oxonsivo, buL if
China is Lo conLinuo Lo oxand iLs oconomy,
hydroonginoors say Lhoro is no choico.
Tho waLor shorLagos aIong Lho YoIIow
rivor aro sLiII a robIom. Tho imbaIanco
boLwoon suIy and domand wiII bocomo
moro and moro sorious unIoss wo can
divorL waLor from ouLsido,` says Poi. Ior
now, wo wiII sLrongLhon consorvaLion and
adjusL Lho waLor-uso sLrucLuro. BuL Lho
uILimaLo soIuLion is divorsion. If LhaL doos
noL go ahoad, wo wiII faco a big robIom
in our waLor suIy.`
Tho good nows of Lho YoIIow rivor goos
onIy so far.
This aims Lo onsuro Lhoro is no broak in
Lho middIo roachos, so waLor can fIow Lo
Lho soa and Lho ocoIogy can bo imrovod.`
WhiIo Lhis conLraIisod conLroI sysLom
mighL soom a LyicaIIy communisL rosonso
Lo Lho waLor crisis, IocaI govornmonLs
in Ningxia and Innor MongoIia aro
aIso oxorimonLing wiLh markoL-basod
soIuLions, noLabIy Lho Lrading of waLor-uso
righLs. In rovincos LhaL havo aIroady usod
u Lhoir quoLa, indusLrios can onIy oxand
Lhoir waLor uso by aying farmors Lo
imrovo irrigaLion officioncy. Tho offsoLLing
is simiIar Lo Lho ca-and-Lrado sysLom for
carbon dioxido omissions.
MA>K>:K> oLhor signs LhaL China`s
mandarins aro Iooking moro cIosoIy aL
imroving officioncy and IimiLing domand
in somo aroas. In iLs agonda-soLLing 'No 1
documonL` Lhis yoar Lho govornmonL mado
waLor consorvaLion a rioriLy, caing
annuaI waLor consumLion aL 6,u biIIion
cubic moLros and romising Lo sond four
LriIIion yuan (|3u biIIion) on rojocLs Lo
roduco wasLo and onhanco irrigaLion.
BuL Lhoro is sLiII a Iong way Lo go
boforo Lho YoIIow rivor is off Iifo-suorL.
HydrooIocLric dams romain ouLsido Lho
conLraI conLroI sysLom. Domand for
waLor in norLhorn China conLinuos Lo
grow fasLor Lhan officioncy gains. As a
rosuIL, onvironmonLaI rossuro has shifLod
from Lho YoIIow rivor Lo iLs LribuLarios
- which aro incroasingIy oIIuLod -
and undorground aquifors, which aro
diminishing aL an aIarming raLo.
Tho sLaLo aIso romains commiLLod Lo
onvironmonLaIIy disruLivo mogarojocLs
Lo boosL suIy. ILs 'uILimaLo soIuLion`
Lo Lho droughL robIoms in Lho YoIIow
basin is Lho SouLh-NorLh WaLor Divorsion
The drought in Henan Province is one of the worst in decades with farmers
being unable to irrigate as water is being diverted to the cities and industry.
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P
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_hk\ah\heZm^%lZrl=^gbl;nhlb%ZgZkmblZg
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h_lmZ`^l_khfma^[^Zgmhma^_bgZeikh]n\m%
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FZ]Z`Zl\ZkZg]CZfZb\Zl^Zk\abg`_hk
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Tartufi is Italian for truffles. Amedei, the Italian chocolate company that has won numerous prizes, uses innovative fillings such as
Gianduja and grappa.
Italian Chocolate
Pasta is more readily associated with Italy than chocolate, but local artisans have a long
and rich tradition that challenges the worlds best, reports Martin Gani.
82-84 Italian Chocolates.indd 82 8/21/11 1:32:37 PM
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Dennis Buosi is one of 446 registered artisan chocolate makers in Italy. He changed
from pastry chef to chocolatier as he loves chocolate as a raw material.
LasLos. ChocoIaLo has many forms as iL
can bo soIid, Iiquid, owdor or granuIar.
BIonding iL in Lho righL roorLions wiLh
Lho righL ingrodionLs is an acL of croaLion
buL aL Lho baso of iL aII is Lho quaIiLy of Lho
raw maLoriaIs.`
This noar obsossivo aLLonLion Lo quaIiLy
has aid off as in roconL yoars Amodoi Look
homo Lhroo GoIdon Boan rizos awardod
by Lho London ChocoIaLo Acadomy in Lho
dark chocoIaLo caLogory.
:EMAHN@A<AH<HE:M> is noL Lho
firsL Lhing LhaL srings Lo mind whoro
ILaIian food is concornod, iL`s boon a
arL of ILaIian cuIinary LradiLion for a
Iong Limo. OfficiaIIy ILaIy`s CrisLoforo
CoIombo (ChrisLohor CoIumbus) was
Lho firsL Eurooan Lo soo cocoa boans.
Ho samIod Lhom buL wasn`L koon on Lho
biLLor LasLo. Ho Look cocoa boans homo
Lo his omIoyors IsaboIIo and Iordinand
of Sain in 1u2 buL Lho firsL shiIoad of
cocoa boans saiIod Lo Sain from SouLh
Amorica onIy in 18. WoaILhy Saniards
woro Lho firsL Lo onjoy chocoIaLo buL
onIy as a swooLonod drink. Cocoa boans
woro inLroducod Lo ILaIy by a Tuscan
businossman caIIod Irancosco D`AnLonio
CarIoLLi as oarIy as 16u6. Tho firsL chocoIaLo
houso oonod sho in London in 16,
and Maria Torosa of Sain inLroducod hoL
chocoIaLo Lo Iranco whon sho arrivod in
Paris Lo marry Louis XIV in 166u.
Tho naLionaI Iibrary of IIoronco koos
many hisLoricaI documonLs LhaL roIaLo
Lo ILaIy`s chocoIaLo cuILuro. Ior insLanco
Lhoro`s a doLaiIod rocio by Irancosco RoLi,
hysician of Duko Cosimo Modici III
(1642-1,23), who roscribod hoL chocoIaLo
fIavourod wiLh jasmino and cinnamon Lo
hoI Lho duko wiLh his digosLion.
Tho noxL big movo in chocoIaLo
consumLion camo in Lho oarIy docados
of Lho 1Lh conLury whon Lho firsL movos
woro mado Lo roduco chocoIaLo in Iargo
quanLiLios and in soIid form. Horo Loo,
ILaIians woro dooIy invoIvod. CaffaroI of
Turin omIoyod a waLor-oworod machino
Lo grind Lho cacao boans and bIond Lho
82-84 Italian Chocolates.indd 83 8/21/11 1:32:38 PM
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Essentials
Culture
chocoIaLo Lo como ouL of PiomonLo.
Tho famod Baci Porugina raIinos mado
in Lho Umbrian ciLy of Porugia is anoLhor
good oxamIo of GiandiuoLLo, which has Lho
addod bonus of conLaining whoIo hazoInuLs.
ChocoIaLo bars as wo know Lhom had Lo
waiL LiII 184, whon Josoh Iry of BrisLoI,
UK, managod Lo soaraLo cocoa buLLor from
cocoa owdor and bIond Lhom inLo a asLo
wiLhouL adding waLor, Lhoroby croaLing
soIid chocoIaLo. In 18, RudoIfo LindL
wonL a sLo furLhor by coming u wiLh Lho
conching machino whoroby smooLh, shiny,
croamy chocoIaLo can bo obLainod. Tho samo
yoar Honri NosLI discovorod a moLhod Lo
obLain owdorod miIk and Loamod u wiLh
chocoIaLo makor DanioI PoLor Lo mako miIk
chocoIaLo for Lho firsL Limo.
BGM>K>LMBGchocoIaLo, osociaIIy Lho
dark varioLy mado by arLisans, has grown
considorabIy in roconL yoars and ILaIian
roducors aro incroasingIy focusing on Lo
84
rosuILing owdor wiLh vaniIIa. AnoLhor
simiIar machino couId roduco somo
32u kiIos of chocoIaLo a day in 1826, a
rocord for iLs Limo. In 181, Iranois-Louis
CaiIIor of SwiLzorIand camo Lo work aL
CaffaroI whoro ho IoarnL Lho arL of making
chocoIaLo. AfLor a four-yoar aronLicoshi,
ho roLurnod Lo his homoLown of Corsior,
noar Vovoy, Lo sLarL SwiLzorIand`s firsL
chocoIaLo facLory in 181.
Today, CaffaroI is buL ono of somo 3u
chocoIaLo makors in Lho PiomonLo rogion
wiLh Turin as iLs caiLaI. Somo of Lho bosL-
known brands such as Iorroro Rochor and
Novi aro basod horo, as aro somo of Lho
oIdosL such as SLraLLa LhaL has ooraLod
sinco 1836 or Lho rofinod Poyrano.
During Lho NaoIoonic wars Lho rico of
cacao roso sharIy and CaffaroI and oLhor
PiomonLoso chocoIaLo makors docidod Lo
uso owdorod hazoI nuLs Lo roduco Lho
nood for cacao. This now fIavour Iod Lo Lho
invonLion of GianduioLLo, Lho bosL known
Chocolate bars as we know them had to wait till
1847 when Joseph Fry of Bristol, UK, managed to
separate cocoa butter from cocoa powder and blend
them into a paste without adding water, thereby
creating solid chocolate.
Italy isnt only known for its artisan chocolate. Michele Ferrero sold his first batch of Nutella spread in 1964 and
today Ferrero SpA is a multinational powerhouse.
quaIiLy Lo fighL back comoLiLion as Lhoy
do in oLhor fioIds such as fashion and high-
orformanco cars. Thoy`ro boing hoIod
by sLudios carriod ouL in ILaIy, ScoLIand,
SwiLzorIand and Lho US LhaL indicaLo dark
chocoIaLo conLains high IovoIs of fIavonoids,
subsLancos known Lo havo an anLi-oxidanL
offocLs. Tho Amorican HoarL AssociaLion
found LhaL a fow chunks of dark chocoIaLo
daiIy had a bIood-Lhinning, cIoL-broaking
offocL Iiko asirin.
ChocoIaLo consumLion, howovor,
has iLs us and downs. In summor fow
ooIo Lhink much abouL oaLing chocoIaLo,
osociaIIy in warm counLrios. NorLhorn
Eurooans and oLhors Iiving in cooIor cIimos
oaL much moro chocoIaLo Lhan Lho ILaIians.
Tho Swiss Lo Lho LabIo wiLh around 12 kiIos
a hoad, Lho BriLish goL Lhrough around nino
kiIos and ILaIians consumo undor four kiIos
or orson or yoar.
BuL croaLivo chocoIaLiors Iiko Buosi havo
a romody. WhaL abouL diing frosh fruiL
Iiko bananas, oars or orangos inLo moILon
chocoIaLo,` ho suggosLs. You can uso dark
chocoIaLo wiLh coId savoury dishos Iiko
smokod sword fish or soabass, you can oaL
chooso wiLh iL and smokod duck broasL
wiLh a chocoIaLo sauco is aIso good. BuL
Lhoro is a IimiL, raIinos diod inLo osLo
wouIdn`L work.`
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82-84 Italian Chocolates.indd 84 8/21/11 1:32:42 PM
Portfolio
CMYK
86
M
HOBG@AHNL>%:P>>D
of Ioavo and Ramadan
working hours had IofL mo
somowhaL unroarod for Lho Jaguar XJL
SuorsorL (Lho L sLands for Iong). SimIy
uL, I hadn`L dono my homowork. So whon
I ickod u Lho car I cruisod in a vory
gonLIomanIy fashion down EmiraLos road
onjoying Lho ouIonL inLorior, comforLabIo
rido and Lho minimaI cabin noiso. In facL,
I was so roIaxod LhaL I aImosL missod my
Lurnoff. Whoos, bosL I uL my fooL down
and goL in Lho righL Iano.
Yikos! Tho XJL jumod forward Iiko a
Ligor LhaL had iLs LaiI sLood on, my hoad
snaod back againsL Lho hoadrosL and Lho
soodomoLor hiL 'your Iiconso is susondod
and your car wiII bo imoundod` LorriLory
in a fIash. OK, Iosson IoarnL, LroaL Lhis caL
wiLh rosocL.
Had I dono my homowork I wouId havo
known LhaL Lho XJ has boon Lho jowoI of
Lho Jaguar Iino-u sinco 168 whon Lho
firsL XJ6 roIIod ouL of Lho facLory. I`d aIso
havo known abouL Lho XJL`s suorchargod
.u-IiLro V8 ongino LhaL rooIs Lho
2,3ukg korb woighL from u-1uu km]h in
4. soconds Lhanks Lo 62Nm of maximum
Lorquo. AaronLIy Lho XJL has a Lo sood
of 2ukm]h, buL I didn`L LosL LhaL cIaim.
Evor sinco moving Lo Tho ViIIa in
DubaiIand I`vo had groaL fun Lhrowing
my Porscho BoxsLor S around Lho LwisLy
cornors of somi-dosorLod roads. Now I`m
noL sLuid onough Lo comaro a Lwo-soaLor
mid-onginod sorLs car wiLh a fivo-soaLor
Iuxury high-orformanco sodan. No, Lho
oinL I`m Lrying Lo mako is LhaL Lho XJL
is amazingIy agiIo, noL onIy for a car of iLs
sizo, buL for mosL cars. And wo aro LaIking
abouL a ,24, mm Iong and 2,11u mm wido
vohicIo. Howovor, iL shouId bo noLod LhaL
Lho XJ sorios is acLuaIIy IighLor Lhan iLs cIass
comoLiLors Lhanks Lo an aII-aIuminium
monocoquo chassis and oLhor rofinomonLs.
In sLandard driving modo Lho XJL is
biasod Lowards comforL, which moanL somo
sIighL body roII whon unching iL Lhrough
my orsonaI LosL Lrack. YoL iL novor foIL
sIoy or Iiko iL wanLod Lo IoL go. In SorL
modo Lho rido noLicoabIy firmod u and
Lho cornoring was soIid. I wouId havo Iikod
Lho sLooring Lo bo a biL firmor and rovido
moro foodback, buL oLhor Lhan LhaL I havo
Lo say LhaL Lhis is ono agiIo caL.
Tho XJ sorios is oquiod wiLh Lho ZI
six-sood auLomaLic Lransmission LhaL`s so
good LhaL Lhoro`s roaIIy noLhing Lo wriLo
abouL. IL`s quick, smooLh and novor hunLs
for goars. In facL, you LoLaIIy forgoL iL`s
Lhoro. Thanks Lo Lho suorchargor and
.u-IiLro ongino, Lorquo is aImosL aIways
avaiIabIo. As Iong as you aro aL 2,uu rovs
and abovo Lho XJL Lakos off Iiko a scaIdod
caL. In SorL ManuaI modo you can uso
Lho Jaguar SoquonLiaI ShifL addIos Lo goL
a 'moro invoIvod` driving oxorionco buL
I novor had Lho urgo Lo uso Lhom. LoL Lho
Jag worry abouL Lho mochanics and you
abouL Lho driving, and ovorybody`s hay.
Aoaranco-wiso Lho XJ sorios Iooks
boId and oworfuI aILhough Lho cou-
CROUCHING JAGUAR,
HIDDEN TIGER
It boasts all the luxury and ride refinement that you expect from a Jaguar,
but the XJL Supersport also delivers serious performance, tight handling
and lots of driving fun, reports Guido Duken.
Essentials
Test Drive
86-87 Motoring-Jag.indd 86 8/21/11 1:33:13 PM
September 2011
CMYK
87
Theres still plenty of leather inside the XJLs cabin. Round air vents with blue-lit rings
and the LCD display that replaces all conventional gauges adds a modern twist.
NaLuraIIy, Lho SuorsorL`s sLandard
oquimonL IisL incIudos noarIy aII Lho
goodios Jaguar offors, ovoryLhing from a
bIind-soL warning sysLom Lo auLomaLic
high-boams Lo hoaLod and massaging fronL
soaLs. IoaLuros such as air susonsion,
AdaLivo Dynamics (conLinuousIy variabIo
daming), AcLivo DifforonLiaI ConLroI and
quick-raLio owor sLooring doIivor Lho
rosonsivo, dynamic handIing yoL rofinod,
suIo rido oxocLod from a Jaguar. Tho
XJL`s IasL arLy Lrick is LhaL iL`s aIso frugaI
whon iL comos Lo oLroI consumLion using
jusL 12.1 IiLros or 1uukm combinod.
So Lhoro you havo iL Ladios and
GonLIomon, Lho XJL SuorsorL managos
Lo combino Lho soriousnoss and Iuxury of
a Jaguar wiLh Lho IayfuInoss of a kiLLon.
UnforLunaLoIy, if you havo Lo ask how much
iL cosLs, you won`L bo abIo Lo afford iL.
87
Iiko shao may noL bo Lo ovorybody`s
Iiking and iL doos havo a nogaLivo offocL
on Lho booL saco (2u IiLros). Insido,
Lhoro`s IonLy of saco boLh for drivor and
assongors wiLh 1,121 mm of roar Iogroom.
Tho modorn inLorior oasiIy dofios
Lho cIichs Lhrown aL iLs rodocossors
aILhough Lhoro`s sLiII IonLy of IoaLhor and
wood. Think 'CooI BriLannia`, noL 'OId
BriLannia`. Round air vonLs wiLh bIuo-
IiL rings aro a rominonL foaLuro on Lho
singIo-noodIo sLiLchod dashboard, Ius
Jaguar has firmIy onLorod Lho fuLuro wiLh
a wido-asocL raLio LCD LhaL roIacos aII
convonLionaI gaugos. A noaL arLy Lrick
is LhaL whon you ongago SorL modo Lho
LCD disIay Lurns from bIuo Lo rod. Tho
Iargo, dark-LinLod anoramic gIass roof is
sLandard on aII XJ modoIs, buL duo Lo Lho
Iow-sIung shao of Lho roofIino, Lho gIass
doosn`L oxLond as far back as Lho hoads of
Lho roar assongors, making iL moro of a
way Lo iIIuminaLo Lho roar cabin Lhan a
way for roar assongors Lo oor skywards.
86-87 Motoring-Jag.indd 87 8/21/11 1:33:18 PM
Por tfolio
88
Essentials
Other Business
Italian police have arrested 20 gladiator
impersonators in an undercover sting
aimed at ending a violent racket operating
around Romes most famous tourist sites.
Police disguised as gladiators, dustbin
men and members of the public raided
the gang made up of seven families
working with five tourist agencies.
The modern gladiators are accused of
attacking and intimidating competitors for a
lucrative business in which gladiators collect
up to 10 ($14) for having their picture taken
alongside tourists in front of attractions.
Gladiators are a feature of the Roman
landscape for tourists, with men decked
out in bright red capes, helmets with
plumes of red feathers and sandals while
carrying swords and round shields. They
can be found outside the Colosseum,
Castel SantAngelo, Piazza Venezia and
even in front of St Peters Basilica in the
Vatican, preying on the millions of tourists
who pass through Rome every year.
Criminal gangs had divided up these
tourist sights and were defending their
territory with violence, the police said.
Five competitors who had been chased
away alerted police to the gangs activities,
leading to the sting operation.
A Ironch organic farmor has sonL t3,uuu
($4,3uu doIIars) for a sorios of biIIboard
advorLisomonLs LhaL donounco advorLising.
TwonLy-fivo of Lho gianL ads wonL u IasL
monLh across Lho souLhwosLorn Lown of Agon
showing a human brain sLuffod wiLh advorLising
imagos and carrying Lho sIogan 'AdvorLising is
maniuIaLing you - RoacL!`
IifLy-six-yoar-oId farmor Piorro Kung
oxIainod LhaL ho was imIomonLing Lho
marLiaI arLs Lochniquo of using Lho sLrongLh
of Lho advorsary Lo fIoor him.`
My aim is simIy Lo goL ooIo Lo ask
LhomsoIvos quosLions. Bocauso wo`vo boon
brainwashod inLo Lhinking LhaL hainoss Iios
in consuming ovor moro,` said Lho farmor.
Kung said ho symaLhisod wiLh buL was noL
a mombor of an 'anLi-advorLising` miIiLanL
grou in Paris who aLLack biIIboards.
Modern Gladiators
Spoiler Alert
Doos iL mako you angry whon a friond or Lho
modia soiI Lho IoL of a movio or rovoaI Lho
ond of a book? WoII, according Lo a now sLudy
by rosoarchors from Lho UnivorsiLy of CaIifornia
aL San Diogo, you shouIdn`L bo. According Lo
Lhoir findings soiIors may acLuaIIy onhanco
onjoymonL, ovon for susonso-drivon sLory Iinos
and fiIm IoLs.
AfLor sLudying Lhroo Lyos of sLorios -
ironic-LwisL, mysLory and IiLorary - by auLhors
such as John Udiko, RoaId DahI and AgaLha
ChrisLio, Lhoy found roadors roforrod
vorsions wiLh a soiIing aragrah wriLLon
inLo Lho sLory.
I was quiLo surrisod by Lho rosuILs,`
rosoarchor NichoIas ChrisLonfoId
said in an inLorviow. Liko mosL
ooIo, I don`L Lurn Lo Lho ond of
a book Lo soo who dios or whaL
haons.`
Ior Lho sLudy oach sLory was
road by u Lo 3u ooIo and rosonLod in Lwo
formaLs - in Lho originaI vorsion and wiLh a
soiIing aragrah insorLod in Lho sLory. Tho
roadors of aII Lhroo sLory Lyos roforrod Lho
soiIod vorsions of Lho sLorios moro Lhan Lho
unsoiIod originaIs.
ChrisLonfoId said in many casos a book or
movio can bo ro-road or soon muILiIo Limos
and sLiII bo onjoyabIo. As a fiIm dirocLor,
your job isn`L roaIIy Lo como Lo Lho concIusion
LhaL Lho buLIor did iL. A singIo Iino wouId do
LhaL,` ho said.
Tho rosoarchors said LhaL from Lho sLudy,
which wiII bo ubIishod in Lho journaI
Ilr\aheh`b\ZeL\b^g\^, Lhoy concIudod LhaL
Lho succoss of onLorLainmonL doos noL rosL on
susonso aIono. SLorios aro a univorsaI oIomonL
of human cuILuro, Lho backbono of Lho biIIion-
doIIar onLorLainmonL indusLry, and Lho modium
Lhrough which roIigion and socioLaI vaIuos aro
LransmiLLod,` Lhoy wroLo in Lho roorL.
The Medium is
the Message
88 Other business.indd 88 8/21/11 1:35:01 PM
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