Ending World Poverty - Arbitrage Magazine by Arbitrage Magazine

THINKING POOR OR POOR THINKING?

FALL 2011

ending WORLD

RETHINKING AFRICAN DEVELOPMENT

10 SOLUTIONS TO POVERTY

SINGAPORE: A REFORM SUCCESS STORY

The National Finance Students Association The National Finance Students Association is a non-profit, student-run initiative, is a non-profit, student-run initiative,which which aimsaims to increase thethe competitiveness to increase competitivenessofofour our members in the job market. We achieve this members in the job market.

goal by creating networking opportunities, offering support, and providing resources that be used to better oneself for a Wecan achieve this goal byequip creating transition from university to the workplace.

networking opportunities, offering support, and We providing resources can abe used to are committed to that creating nationwide network bringing professionals, better equip byoneself forfinance a transition from students, and educators together university to the workplace. through our seminars, conferences, and

competitions. We are focused on fostering personal development and growth among We are creating a nationwide our committed members, to while accumulating tacit network by bringing finance professionals, knowledge and experience which can be leveraged to gain a realthrough competitive students, and educators together our advantage while seeking employment.

seminars, conferences, and competitions. We invite you to explore your potential.

We are focused on fostering personal development and growth among our members, while accumulating tacit knowledge and experience which can be leveraged to gain a real competitive advantage while seeking employment. We invite you to explore your potential.

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editor’s note To the Arbitrage Community, As you trade in summer vacation for a return to books and lecture halls, let the ARB help you regain your academic groove with some BITE through the release of our eighth issue. -R PMKLX SJ VIGIRX WXEJ½RK ERH [VMXMRK TSPMG] GLERKIW EMQIH EX WXVIRKXLIRMRK SYV standing as North America’s largest, student driven business news magazine, I would like to personally commend the hard work and dedication of our evergrowing staff and contributors, and encourage our broad readership to challenge us to be better. I welcome everyone to join us on this journey as we continue to grow as a legitimate business magazine, extending our news reach and relevance to new heights. 3YV KVS[XL MW I\IQTPM½IH MR SYV PEXIWX MWWYI [LMGL [I EPP EKVII MW SYV FIWX ]IX We have been passionate about featuring poverty as a theme for the magazine, and we felt this was the ideal time to do so! Poverty has consistently proven to be a prominent issue we face as a global community, but it has been emphatically heightened in light of the persistent economic hardships we cannot seem to escape. From rethinking African development to embracing the remarkable progress SJ 7MRKETSVI XLMW MWWYI KSIW FI]SRH E WYTIV½GMEP EGORS[PIHKIQIRX XLEX TSZIVX] is a real issue, and tackles head on what we can really do to combat it. Are short term loans and donations really the solution to ending poverty in Africa, or must [I HMK HIITIV# 8VETTIH MR E TSPMXMGEP FEXXPI½IPH LEW IRHMRK TSZIVX] WMQTP] FIGSQI rhetoric? Read on, open your mind, and make your own personal conclusions on this contentious topic. Naturally, the ARB always stays true to its strong student readership. ‘Budding Investors‘ introduces investment opportunities for students; ‘Apple Nation’ acknowledges youth’s fascination with Apple Inc; ‘B-schools: Which one’s for you’ helps guide business graduate hopefuls to their dream schools; and ‘Entrepreneur Watch: Dan Tanenbaum’ gives some sound advice about entrepreneurship from the ground up. Take a seat, buckle up, and prepare yourself to be enlightened by our latest installment: Ending Poverty.

Andi Kusuri Editor-in-Chief Arbitrage Magazine

Founder & CEO David Alexander Board of Directors Samita Vasudeva Garin Kilpatrick Michael Manirakiza Rabeea Wajeeha

Magazine Production Team Editor-in-Chef Andi Kusuri

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Sectior Editors Abinash Murali Narayanan Anna Marszalek Hailey Dale Natashalee Reid

Staff Writers Jennifer Jang Liam Scott Zack Larmand Exequiel Octavio Bertaina Maymuna Abdi Chet F. Chung Aditi Sethi Prachi Kamble Corinne Ton That Arina Kharlamova Betty Yan Kenyo Smalling Khristopher Reardon Devin P.L. Edwards Siavosh Moshiri Amanda Childs Samadrita Guin Herbert Lui Ellie Chan Amanda Justina Thomas Herbert Lui Ellie Chan Amanda Justina Thomas Roxanne De Souza Amarpreet Atwal Megan Harris Eric Blix Meagan Yockey Monica Cheng Amanda Thomas Michael Miles Priya Gandhi Shruti Desai Christina Headrick Christopher M. Robb Katherine Thorsteinson Andrea Normadeau Kirk A. Devezin II

Contributing Writers Sean Karmali Ryan McLaughlin Troy Redick Alfred Yim Magdalene Arthur

%J½PMEXI &PSKKIV Alex Vo Partner Blogger Peter Demain

Staff Designers Jennifer Lee Laura Gonsalves Angela Song Christine Sherry Monserrat Rivera Joseph Kong Richard Pereira Richard Bramer Andrew West Tim Walker Corinne Chesher Nadine Kim Eman Faiz Laura Prosser Eleanor Ma Christopher Eric Olson Selina McGinnis In Young Lee Ryan James Terry Jae Lee (Keming) Christina Lee Azin Dilmaghani Julaluck Kit Powsong Clairel Lvesque Adam Oliver Summer Zhang

Online Editors Katherine Nader Amna Siddiqui Elizabeth Varvaro Liana Crocco Kelly Townsend Art Director =IWWM %VM½R Assistant Art Directors Lily Li Nahad Imarinad *Cover Credits: Davidlohr Bueso LXXT [[[ ¾MGOV GSQ TLSXSW HEZIVYKF]

Arbitrage Support Staff

Marketing Director Shelley Cao

Sales Manager Jaspreet Singh

Communications Reps Catherine Chen Drew Tamakuwala Marcia Rivera Navarrete Alexandra Connerty Ryan Hamilton

Assistant HR Director Asad Niyaz HR Coordinators Sonia Choi Mellisa Tan

features

Thinking Poor or Poor Thinking?

Rethinking African Development

Ten Solutions to Poverty

Singapore Blossoms Into World Class Example

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The Confounding Cliché of Economics History Child Poverty and Canadian Economy Prosperity Budding Investors Wall Street Destroying Weak Regulation by Purchasing the House of Representatives

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Livable Cities = Sustainable Cities

49 50

The Curious Case of the Disappearing International Students

Women’s Human Capital Loaded on Pills: How North America is Losing its War against Depression Apple Nation: Follow the Leader

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Role of Cell Phones in Developing Countries The ISP War on Piracy iPhone Killers Norway Retailers Pull Violent Games Off Shelves after Massacre

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)RXVITVIRIYV ;EXGL &YQT W 1EKMG 1ER (ER 8ERIRFEYQ (MKMXMWIW XLI 6EJ¾I Owning a Franchise - A Feasible Option for Graduates

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Dinner with Herman Alves Auto-Insurance Debunked: Toppling the Mighty Dictator B-Schools: Which One’s For You?

TRENDS “Fundamentally, poverty is a denial of choices and opportunities, a violation society. It means not having enough to feed and clothe a family […] a job to earn one’s living, or not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation.”1 - UN

Industrial Revolution. Information Age. Economic Globalization. History is marked by key events that highlight the continuous progression of humankind. Yet, history is also marked by events which have impeded our and World War II, and the very recent global economic recession. Couple modern market mechanism, and increased radicalism; and we’ve come full circle. As a global community, we’ve achieved a lot to combat poverty. Yet, we’re far from ending it. Regardless of where you might be in the world, poverty crosses all borders. Whether it’s corruption and famine in Africa; political instability, powerlessness and exclusion across the Middle East; or even growing frustration and unemployment in the world’s leading economies,

existing mental models, and take steps to identify solutions to combat it.

http://www.un.org/esa/socdev/unyin/documents/ydiDavidGordon_poverty.pdf

Thinking Poor or Poor Thinking?

Rethinking African Development Resolving internal issues vs short term loans to African countries.

Ten Solutions to Poverty Solutions to Poverty.

Singapore Blossoms into World Class Example Development of Singapore (historical perspective)

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POOR

()' POOR'!"#$%#$&? What are the causes of Poverty?

OUR POOR THINKING Thinking about poverty usually swells most of our hearts. Regardless of personal political stances, our feelings toward it don’t differ very much: we abhor it and if we could we’d throw the damn thing against the wall and spit on it. We are all privy to the devastating effects it has on those unfortunate enough to cross its path, and it’s agreed that this cancer must

be eradicated…So why is most of the world still gripped so tightly by it? It is short-sighted to objectively claim to have the solution to this problem – the reason why the Left and Right continuously and vigorously battle it out in the political arena. And it is that debilitating political clash that in large part maintains 80% of the world living on $10 a day despite the economic prosperity the 21st century can boast

on a global scale. Sometimes people, too, can run into this wall head-on and knock themselves out. In fact, little progress has been made in regards to poverty precisely because of political prejudices…Hell, remember the frigidity of the post-WWII period?

Fall 2011 ArbitrageMagazine.ca

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This young woman helps her self-group in Kilimambogo farm a small plot of vegetables, working hard to increase their meagre incomes.

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But the Union of Soviet Satellite Republics (USSR) had consolidated its power since the October Revolution of 1917 and for just as long had brought onto the international arena the reality of a Socialist Agenda in regards to economics, politics and culture. They purported to reverse the poverty that – they claimed – the Capitalist Bloc had created. Lamentably, by the 1950s, the USSR under Joseph Stalin had deteriorated into a totalitarian regime, leaving no room for individual freedom and a looming bureaucratic menace ripped right out of Orwell’s 1984 as its legacy. The end of the Cold War, amongst other things, convinced the world to denounce the idea that Socialism could solve the problem of poverty. And understandably so, because its ambassador ended up creating more poverty, inequality and state corruption than before. Victorious Western Capitalism is today exported practically worldwide. It’s thought that the fantastic wave of

neo-liberalism will lift the Third World out from the bottom of the sea. But a venomous concoction of hyped-up political antagonisms and unfettered neo-liberalism has caused adverse effects.

HYPED-UP GROWTH & CONCEALED WOES When that fantastic wave of economic growth came, the Third World seems to have been sucked down by the undertow rather than being lifted. Floating comfortably above sea level, our analytical and critical perspectives have been blindsided by staggering economic growth. Today, we believe the neo-liberal theory of trickle down economics so deeply that we often fail to internalize clear signs of its potential to create dependency and poverty. In Ecuador – a small Third World Andean country in South America – 33.1% of people live below the poverty line, according to the CIA Factbook.

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A COLD PAST As the Capitalist System evolved through the 19th Century and raised the living standards of the succeeding generations, more and more people were pushed to the fringes of society while a gradually decreasing number of people owned larger portions of the economic pie, a context in which the middle class emerged. The system’s jaw-dropping economic prowess and swift rate of growth prompted most of the world to adopt one form of it or another and the system in its totality went unchallenged for a long time. Though the Bolsheviks had taken over what would become the USSR, the glorious ‘20s reminded people in the West of the wonderful life that that the power of unfettered Capitalism, In du str y a n d Inve stme nt made possible. Fascism arose for a while as a viable alternative, particularly as the economy in the 1930’s was decimated, and then the Second World War broke out. We all know the ending to that…

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Claiming that the dollarization (U.S.) of the national currency has helped revitalize the “investment climate, reassured potential investors and potentially increased the capacity of the economy to create employment and reduce poverty,” the UN’s Report on the Assessment of Poverty in Ecuador and other promoters of neo-liberalism stand by this decision with their lives. However, the same Report also explains that despite further subduing O`WLYPUÅH[PVU H[ OVTL MHTPSPLZ» SPML[PTL savings were “often swept away,” and the miniscule reduction in cost of the average consumption basket ended up helping mostly only the non-poor, considering the particular consumption patterns of the poor. Right here in Industrialized Canada, Prime Minister Harper’s personal ideas have been that the best longterm strategy to combat poverty is “sustained employment of Canadians” – a noble idea to espouse would the unemployment rate not be about 3% higher than that of Ecuador’s. But it isn’t only that a country with a $1+ [YPSSPVU .+7 Z[PSS ÄUKZ VM WLVWSL jobless; there are also 3+ million Canadians who are poor, of which 610,000 are children, as reported by an article in The Economist. And Canada seems to have a poor record when it comes to children. As an article from Street Level Consulting Ltd. reports – a counseling and consulting company set in Calgary, Alberta: Despite a period of unparalleled economic expansion in the mid 1990s, this decade was one of failed expectations and broken promises for children and their families…[A]t a time when governments had a growing capacity to invest in a long-term vision for children — as they had promised to do— they chose instead to cut taxes and dismantle much of the social system that protected families. According to an activist group called Campaign 2000, in 2010 the rate of child poverty was as bad as two decades ago. Public spending cuts have also been criticized by various circles. In Canada, part of the reason why child poverty

was high through the ‘80s and ‘90s and why it remains there today, is because massive public spending cuts was the prescribed medicine for a sickly economy, which was being challenged in those decades by recessions. The 1980s’ blow was mildly softened by government spending still covering some areas, but the ‘90s’ cuts went blood-deep: federal and provincial cuts to employment insurance and social assistance gutted the social safety UL[ HUK P[ PUÅH[LK [OL THNUP[\KL HUK duration of poverty. Today, after the brutal 2008 – 2010 recession, around 48% of the jobless continue to cope ^P[OV\[ QVISLZZ ILULÄ[Z The nature of the Canadian Social Welfare System also seems to be like a boulder weighing down people trying to come up for air. Apart from public spending cuts, ‘90s’ policy also required individuals to renounce most of their personal assets in order to qualify for welfare. Though the idea was to make the program available only for the most destitute, an article by the Ottawa Sun reports that “generally people looking for welfare have to spend their retirement savings before they qualify,” with small details varying from province to province. In the same article, John Rook, Chairperson of the National Council of Welfare, argues that with low asset limits, low-earning exemptions and low welfare rates people become trapped HUK KVVTLK [V WYLJHYPV\Z ÄUHUJPHS situations, “especially…single people”. Adopting a program like Manitoba’s, where families can keep up to $16,000 in savings, is something Rook has recommended to other provinces. Poverty, like religion, is usually discussed very superficially, lest people’s politics get in the way and cause fall-outs. Though we recognize it is a cancer, the boulder is often left unturned in a casual setting due to our political ambivalence. Summoned in a formal manner, such as by an Economist or a Politician, the topic usually gets muddled in a political swamp. Take Ecuador once again. Former President Osvaldo Hurtado, of the political right, undermines 64% of

the electorate that by all accounts legitimately approved a 2008 referendum calling for a Constitutional Amendment by incumbent President Rafael Correa, a left-leaning politician, when he unfoundedly asserts that the election was won through “control of advertising and propaganda, manipulation of voters, and sophisticated election frauds.” He also insists that President Correa is attempting to create a Dictatorship – like Chavez’s, he says – despite the fact that since his coming to power $15+ billion have been reinvested in public works, helping reduce poverty by almost 6% from 2009 to 2011, as reported by Prensa Latina. This political division has capped much of the progress the world could have experienced otherwise. Precisely because Economic Liberalization has reached such staggering heights and complexity, writes J.W. Smith, an independent Economist, “few of today’s powerful are aware of the waste and destruction created by the continuation of this neo-mercantilist struggle for markets.” And it’s not just the powerful. Our personal economic advancement has conditioned us to subconsciously defend this way of life (part of the reason why, like poverty, we abhor socialism) and in the process to continue reproducing the conditions for global poverty. The framework within which we work and look for answers to the problem of poverty is designed to HSSL]PH[L [OL WYVISLT ¶ UV[ [V Ä_ P[ ¶ and hope to get better. But this is just a bandage over a gash…what happens when the gash deepens and the outpouring blood overtakes the bandage? LIBERALIZING POVERTY Like a powerful avalanche, globalization grows massively as it goes and its force is like a stream overtaking us all. We can’t help but giggle with excitement at the idea of connecting with virtually everyone around the world through our keyboards. The economic impact it’s had on our lives practically tickles us silly. But the avalanche has also trapped many under the rubble. Fall 2011 ArbitrageMagazine.ca

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the world by the IMF and the World Bank, like for example the Washington Consensus and the Structural Adjustment Programs (SAPs), have reproduced the conditions necessary for poverty to take root and perpetuated economic crises around the world. To receive loans from these institutions, countries have given up tremendous amounts of sovereignty and autonomy. Just like Canada was pushed to make public spending cuts in the ‘80s and ‘90s by the IMF to make the country more business-attractive, poor countries have historically agreed to cut public spending on social programs and give tax-cuts to wealthy individuals to foment foreign investment, which has caused local businesses to compete with multinational corporations and come out on the losing end.0 If globalization is indeed like an H]HSHUJOL LUN\SÄUN \Z HSS [OL ^VYZL ones off have got to be the ones at the bottom – the Third World – which will most likely be saved last. THE TOP, THE BOTTOM, THE POWERFUL Though the USSR’s socio-cultural experiment may have had its roots in a Marxist notion of universal equality, the beast grew so out of control that it eventually confused equality with uniformity. Because it sought to brutally quell any sense of personal, creative expression or dissidence, USSR Socialism came to be internationally recognized as a system of mind control directed by oppressive dictators. Today, our recognition that we are all born with different mental and physical capabilities, different interests and, perhaps most importantly, into different socio-economic and political backgrounds, has allowed the entrepreneurial spirit to soar and to cause huge socio-economic progress. And the Capitalist Economic System thrives on this. But what happens when this spirit soars too high? What happens when, in our consumerist society, individual interests of those at the top trump the individual needs of those at the bottom? Despite a global economic upsurge in the last two centuries, the gap

School classroom in Haiti.

between the rich and the poor has paradoxically grown larger. It seems the entrepreneurial spirit has had a runaway effect, allowing few individuals to consume, own and control an increasingly larger share of the economic pie than the majority of the world does. The World Bank Global Poverty Estimate puts around 80% of the world under $10-a-day living standards, which includes much of the First World. To put this in perspective: 76.6% of the world’s goods are consumed by the Top 20%, while the Bottom 80% shares a dismal 14% of the world. In the U.S. alone, the top 1% earns more than the bottom 40%, part of why in 2009 almost 44 million Americans (nearly 15%) lived in poverty. Inequality and polarization help reproduce poverty. As the world continues to adopt unfettered neoSPILYHSPZT H SHYNLY ZLJ[PVU VM P[ ÄUKZ itself in its throes. Indeed, a UN Habitat’s State of the World’s Cities in 2008-2009 report found that India, as many other Third World countries, is becoming more unequal as a direct result of economic liberalization and globalization.

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>OPSL P[Z HK]HU[HNLZ HYL THNUPÄLK the repercussions of Free-er Trade amongst countries are vaguely pointed out as sad but inevitable. Though consumers save money as rabid competition between Canadian and foreign companies ensues, we often ignore that people will inevitably be let go as companies close and outsource to Third World nations, where workers can be paid a fraction of Canadian laborers’ wages for the exact same work. In Ecuador President Correa has put forth an initiative to leave 846 million barrels of petroleum ($7 billion worth) untapped in the Yasuní National Park, “the most bio-diverse swathe of rainforest on earth.” This would avoid 407 million tones of CO2 emissions and help raise life-expectancy levels. However, ravaged by absolute hunger and poverty, locals from bordering towns often have confused feelings about it as many feel that any income supersedes no income, a National Park, or the environment. A destitute and uneducated people, these locals fail to understand neoliberal economics as the root of their poverty. Coca, for instance, one of the destitute towns bordering the Yasuní National Park, has demonstrated impressive economic growth since the 1960s, when Texaco struck oil there. In true capitalist spirit, the government of the time took a hands-off approach, boasting a growing employment rate thanks to the private company’s interest in the land. The result, as reported by Enrique Morales, Director of Environment for the local provincial government, has been an overdependent population on companies causing the very deforestation, contamination, and uncontrolled immigration that maintains locals poor and unhealthy. The contaminated areas and the excess waste were left to be attended – as a paying job, thank god – by the locals. Cleaning contaminated oil spills (as much as 3,000 cubic meters a year), digging trenches, and clearings roads have become their life-savers. It has also been widely recognized by many circles in the world that neoliberal economic policies pushed on

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The same report also found that economic growth exacerbates poverty in more unequal places rather than reduce it. For example, in the U.S. – where it’s been proven that some cities are as unequal as African and Latin American cities – social upward mobility is damn near impossible.In a study done by The Equality Trust in 2009, the U.S. was at the low end of the spectrum for social mobility when compared with 40 other rich countries. In Scandinavian countries, according to the GINI index, which measures the equality of income distribution in a nation from 0 to 1, the equality rates are around the 0.23 mark, placing them near the top of the same graph. In today’s unequal societies, the higher echelons have created their own communities, their own schools, their own health centers, their own shopping malls, all in an attempt to maintain separated from those of the lower classes, whom the former fear may at any moment harm or rob them. This has vital psychological effects. The lower classes may foster feelings of resentment, of inferiority and even of antagonism, which as many studies have proved can and does lead to

higher rates of poverty and crime. The answer is not in gating ourselves off. As Michael Camdessus, the former head of the IMF and a hard-line conservative suggested, the widening gaps between rich and poor is “morally outrageous, economically wasteful and potentially socially explosive.” Particularly explosive is the effect that inequality has on access to lifeopportunities. Despite the fact that we are all humans with the same rights, concentration of wealth and inequality drives a wedge between the elite and the layman, and it gives the former more access to life opportunities than the latter. Though various sources have undisputedly proved that education and health are imperative to socioeconomic progress, access to these two continues to be the hardest thing for poor people to have. A Business Week Magazine article reported in 2002 that the U.S. ranked 10th out of 17 industrialized countries in literacy rates, part of why there is so much inequality. The same article reported that the largest chunk of those people who had no access to education or to very poor education were visible minorities and new immigrants – precisely two of the poorest groups in that country. In another article in the Street Level Consulting Ltd. website, a study from Kevin Lee, from the Canadian Council on Social Development, is cited, concluding that “persons with less than high school education were more likely to be poor than those with a postsecondary level [of] education.” The blow is 100-fold in the Third World because as a Rural Poverty Report 2011 states, although urbanization has historically been on the rise, “poverty remains largely a rural problem, and a majority of the world’s poor will live in rural areas for many decades to come.” This is the case in Ecuador, where the largest segment of the country’s population includes peasants and subsistence farmers, informal sector vendors and agribusiness employees. President Correa’s administration is ÄNO[PUN [V IYPUN LK\JH[PVU HUK OLHS[O centers to these historically ignored areas as well as the favoritism shown to urban schools over vocational and

manual skills schools when it comes to public funding. Because where Economic Power is concentrated so is Political Power, and against a global background of political bickering, those with economic power seem to have the greatest leverage. As such, the privatization of most services and programs has been on the rise, including education and, in H [LU[H[P]L TV]L UV[ `L[ ZVSPKPÄLK PU Canada, health, too. The access to education in industrialized nations is getting ever TVYL KPMÄJ\S[ 0U *HUHKH H MV\Y `LHY university degree in say, Political Science, will cost around $25,000 – $30,000; depending on the program and the institution, the cost can go up to $80,000 – $100,000. In London and other parts of Europe massive and often violent protests have broken out because of austerity measures implemented to alleviate the economic blows they’ve suffered – measures that ultimately affected students, amongst other parts of society. If indeed the knowledge economy is on the rise and in effect generating higher paying jobs requiring more acute levels of knowledge and skills, the number of people that are able to access these jobs is decreasing, and most of those who can access them must indebt themselves and their families for the better part of their life. Against this background it is hard [V LU]PZPVU HU` WYVNYLZZ PU [OL ÄLSK VM LK\JH[PVU HUK OLHS[O ¶ ZWLJPÄJHSS` PU making them more accessible to people so that they may pull themselves out of poverty – until a radical approach to it is taken. In the spirit of true cooperation – political, economic and social – it would bode well for the Western Capitalist World to observe and pick some of the best aspects from their lifelong sworn enemies, and for the re-emerging 21st Century Socialist Bloc to return the favor.

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Very High (Developed Countries) High (Developing Countries) Medium (Developing Countries) Low (Developing Countries) Data Unavailable

evidence. As mentioned above, since President Correaâ&#x20AC;&#x2122;s administration took power, $15+ billion have been reinvested in the country, reducing poverty slowly though gradually. Also, in 2011 just over 15% of the nationâ&#x20AC;&#x2122;s GDP rather than half goes towards paying a foreign debt it claims has amassed through SAPs and adherence to the Washington Consensus; the rest is reinvested into the country. Unemployment rates have dropped and currently reside at 5%. And with the state funding postsecondary education, the literacy rate is now at an impressive 91% of the population. The Cuban Socialist Model has also made great strides forward. Rather than focusing on economic growth alone as a determinant of social progress, the government has stressed the importance of social development policies and the Central Role of the State in implementing and enforcing them. Though the Cuban government has been widely criticized around the world and denounced by many as a dictatorship, the country has made impressive steps forward in terms of

Human Development Index Category of Countries in 2010 reducing absolute poverty, providing social security and, most importantly, creating a society where all individuals share an aspiration to equal outcomes despite their income levels, precisely because of the level of access to all of societyâ&#x20AC;&#x2122;s services, such as education and health, and the ability to voice their opinions at local committees. Under the Human Development Index, Cuba has gradually been climbing since 1998 and is currently 50th, meaning it is among highly developed nations. In the Human Development and Equity Index, *\IH PZ HTVUN [OL [VW Ă&#x201E;]L JV\U[YPLZ in Latin America and the Caribbean. In the 1990s, as the USSR and most of the Socialist Bloc lost momentum, Cuba went through what is now known as the â&#x20AC;&#x153;special periodâ&#x20AC;? â&#x20AC;&#x201C; an era of tremendous economic hardships that saw the re-emergence of relative poverty, something that since the Revolutionâ&#x20AC;&#x2122;s triumph in â&#x20AC;&#x2DC;59 had been practically eradicated.

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REAL PROGRESS IN THE LEFT In the 21st century, the Latin (TLYPJHU JVU[PULU[ OHZ Ă&#x201E;UHSS` ILN\U to work together after centuries of YLNPVUHS JVUĂ&#x2026;PJ[Z Z[LTTPUN MYVT YHJPHS and political prejudices. Yet, sadly, because of that political separatism, clear and evident advances made in that part of the world are obscured, undermined and, in the most extreme cases, outright denied. As we saw above, despite the gradual progress that Ecuador has been making in terms of reducing poverty and providing more social security to the most vulnerable groups of society, Ă&#x201E;N\YLOLHKZ SPRL L_ WYLZPKLU[Z JVU[PU\L to undermine the progress, calling the president a cunning liar and in the process bashing Venezuelaâ&#x20AC;&#x2122;s progress, as well. But claims that there is no democracy in Venezuela have been continuously debunked under overwhelming evidence of the contrary. After 12 elections since 1998 (including referendums and presidential elections) that have all echoed the peopleâ&#x20AC;&#x2122;s wishes in the returning/continuation of President Hugo Chavez, the claim is simply a bad joke. In an article written in Foreign Affairs Magazine, a report is cited from the United Nationsâ&#x20AC;&#x2122; Economic Commission for Latin America and the Caribbean, where it is stated that between â&#x20AC;&#x153;2002 and 2006 Venezuela decreased poverty by 18.4 percent and extreme poverty by 12.3 percent.â&#x20AC;? ;OL MHJ[ PZ [OH[ [OL Ă&#x201E;N\YL VM government spending in 2007, coupled with massive contributions that the state-owned oil company, PDVSA, has committed to the country, including $1.7 billion in 2007 for social programs, have propelled the nation forward. (And if weâ&#x20AC;&#x2122;re talking reinvestment into the country, Canadaâ&#x20AC;&#x2122;s very own Newfoundland has helped to cut its poverty levels by half (to 6.5%) precisely with royalties from oil and mining companies.) Similarly, the claims that Ecuador is a dictatorship also crumble in front of the

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UNDP Human Poverty Index

The volatility of the next years, coupled with the illegal economic and commercial embargo that the United States has sanctioned on Cuba since practically the outset of the Revolution, exacerbated the problem. People nevertheless had access to doctors, particularly the rural areas where after the revolution a medical center had been built in practically every sector of the country, even in the remote mountains; they still had access to free education; and food was provided to a certain extent by the State. Things were tough, KLÄUP[LS` I\[ THUHNLHISL ILJH\ZL of the social spending that provided safety nets for people displaced or ZPTWS` UV[ HISL [V ÄUK ^VYR (JJVYKPUN to the UNDP Human Poverty Index, in 2007 the people below the poverty line were at 4.7%, down from 5.1% in 1997. Unemployment was at an impressive (and continues to be below) 1.9%, down from 7.1% in 1997. The government had also pledged to reduce the rate of hunger by half between 1990 and 2015, and followed through by increasing the food availability between 1999 and 2003, from an average of 3007 kilocalories to 3165 per capita per day, effectively

bringing the malnutrition rate down to 2% of the population. By 2007, the food levels had increased by 37% and the protein levels were increased by 25% thanks to government farming programs. Social programs also see to it that the most vulnerable groups of society – children, women, elderly and the disabled – never go without food. Indeed, through the entire country not a single person lives on the street or goes hungry any night. Cuba has perhaps the best health record in the world, and some of the best professionals come out of their free education system which allows anyone who wants to enter and who has high enough grades to do so. The government increased the number of Municipal Universities during this period by 700. For those who don’t get into universities, the government has built vocational and trade schools all over the country, particularly in remote, rural areas. For instance, a new program called “Superación Integral” (Integral Advancement) has been implemented around the country so that anyone from 18 to 29 years of age that is not working or attending

school can learn computer or other vocational skills. Income redistribution has also played a key role in Cuban society. Apparent in the GINI Index is the fact that equality among people has risen, being at 0.56 in 1953 and 0.22 in 1986; the ‘special period’s’ economic reforms caused the ÄN\YL [V YPZL [V PU » -HJ[VYZ like the declining purchasing power of salaries due to price hikes, the introduction of the double currency, and the dual market system with different prices, currencies and qualities of product, amongst others, contributed to the rising inequality in the country. Also, PUJVTL ZV\YJLZ ILJHTL KP]LYZPÄLK and salary scale gradually separated from work effort. Inequality in terms of material well-being had begun surfacing.

Fall 2011 ArbitrageMagazine.ca

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SHORTCOMINGS ON THE LEFT AND COACHING FROM THE RIGHT In a study cited in the Journal of the Research Group on Socialism and Democracy, a sociologist Mayra Espina found that: Without producing a mechanism for restoring the relations of exploitation or of private property on a large scale, the Cuban [‘90s] reforms… SLK [V YL Z[YH[PÄJH[PVU WYV]PKPUN [OL context for the growth of poverty as a social problem, the expansion of the at-risk segments of the population, and a general trend of widening socioeconomic inequalities. Economist Viviana Togores is also cited, who found that about 49% of the Cuban population fell under the category of income-poverty when measured under a Baskets of Goods approach. Unemployment is at a mere 1% as of 2008, so this has nothing to do with it. Nominal wages have not kept up with increases in consumer prices – this is the main reason. Coupled with other hardships, such as having too many dependents and on the levels of inequality that lamentably still exist in [OL JV\U[Y` HSZV HKK [V [OL ÄYL

The University of Havana has found that there are inter and intra regional inequalities, like for example the quality of housing, access to consumer goods and some social services, and in respect to the level of socio-economic development provided to some regions over others. It further states that a large part of these problems are caused by spatial inequalities inherited from before the Revolution and because of controversial and faulty economic reforms taken in the Z 0U HU` JHZL ;VNVYLZ» Z[\K` ÄUKZ that the “redistributive effect of social expenditures – in education, health, social assistance, etc. – while it does not compensate for the loss of purchasing power, does have a favorable effect on the population, especially those in more needy sectors.” And that is perhaps Cuba’s main lesson to export – a commitment to work from the ground up, to help develop the WVVYLZ[ PUKP]PK\HSZ ÄYZ[ ;OL ZHML[` UL[ provided for workers and their families and for people whose needs aren’t being met because of health reasons, has grown stronger over the decades and has helped to sustain a healthy and educated society, albeit taking small economic strides forward.

Cuban children in Cuatro Caminos.

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In 2007, for instance, out of 11+ million *\IHUZ ZVJPHS ZLJ\YP[` ILULÄJPHYPLZ were 1,571,924, and the number of people receiving social assistance was at 595,181. Contrary to what most of us believe in the West, this does not create lazy people asking for hand-outs from the government. Some Cubans who receive assistance still work, but need the assistance in the face of the economic hardships. Others cannot work due to health circumstances. Under the administration of Raul Castro new steps have been taken to open up the markets a bit more. A reform to allow the setting up of small businesses – which do have to pay a tax – and which looks to reduce unnecessary bureaucratic power in the country has recently been passed. The main objective is to reduce the government’s roles in areas of agriculture, retail and construction. The buying and selling of automobiles and homes is also being discussed. The vision is to allow small, private businesses to step in and inject a much needed jolt into a stagnating economy. In an attempt to reverse the separation of salary-scale from workeffort, farmers no longer receive equal pay from the government, but rather “moral incentives have given way to productivity-related pay,” according to a BBC article. Over 8,000 plots of unproductive state-owned land are now being leased to individual farmers. The important thing is that the steps being taken to open up the economy maintain Human Development at their core. The notion of Moral Obligation over Individual Enrichment has been fundamental in the educational system of Cuba. Concerns from all sides of the political spectrum often warn of the potential for the inequality and concentration of power of which we’ve spoken to arise because of these reforms; but as I spoke with many Cubans, the general feeling was one of ]PZPISL JVUÄKLUJL PU [OL Z\Z[HPUHIPSP[` of the values and social development that the Revolution has made possible.

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Given the magnitude of the economic growth the last couple of centuries have been endowed with, the global poverty that continues to exist is appalling. In this new age – and in these dire circumstances – it is time for us to divorce ourselves from political prejudices and past antagonisms that hinder any compromise and any progress. Currently, the United States is a prime example of what happens when two opposing political ideologies solidify a concrete wall between them and neither side can get through. As things stand, it seems the President has fully caved in to the Republicans as the so-called “balanced approach” seems to only cut nearly $3 trillion in social programs while refusing to raise any revenue by taxing the richest individuals in the country. If working together is what is prescribed for the world to reduce poverty, looking at current U.S. politics may be the most venomous drink we can take.

Some poets believe that only through constant personal turmoil and emotional agony can their creative-self emerge. The world is reaching such poetic levels of poverty and insecurity that time has come for its inhabitants to work together. Long has it been since we realized the Economic Prowess that Capitalism boasts; long has it also been since we witnessed the Juggernaut that Soviet Socialism was. But in this new century of hope and progress, it is due time for us to realize that where the former fails in social development, the latter compliments it; and likewise, where Socialism impedes economic prosperity and individual growth, Capitalism picks up the tab.

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There are other parts of the world that have also shown impressive Human Development records and that have reduced the level of inequality and of poverty to record-low levels. The Scandinavian countries, for instance, have been historically revered for not only their neutrality but also for their commitment to social programs and for the high standard of living that practically everyone enjoys. Redistribution of income levels are in big part to thank for this. Income equality across the Scandinavian countries has, in average, brought everyone to the same levelWSH`PUN ÄLSK [OLYLMVYL NP]PUN [OLT HSS access to the same opportunities. China also has strong social institutions that offer the most vulnerable sectors safety nets to keep from falling into absolute poverty. Of course, the democratic record in the country is questionable, but the fact that people in China do have access to more social assistance than we do here is undeniable.

Fall 2011 ArbitrageMagazine.ca

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Resolving internal issues and private sector assistance may be the key answers to African growth PUZ[LHK VM VMĂ&#x201E;JPHS KL]LSVWTLU[ HZZPZ[HUJL HUK ZOVY[ term loans

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!"#$%&'()*+#&),-),.,/0.&!/,& !(&01,&2!.0&,+!/!2*+#33$&#/"& -!3*0*+#33$&4/",)",5,3!-,"& ),6*!/.&!(&01,&7!)3"8&91,& +!/0*/,/0:.& .3466*.1& ",5,3!-2,/0&-#+,&+#/&;,&#00)*;40,"&0!& LWV GDUN OHJDF\ RI SRVW FRORQLDO FRQĂ&#x20AC;LFWV In the past, the independence of many African countries brought about weak and failed states with dysfunctional economies compounded by bad governance, poor political leadership, and governmental corruption. Approximately 40 percent of its population today is considered extremely poor, with individuals living on less than US$1 a day. The number of people living in extreme poverty has almost doubled from 1981 to 313 million in 2001. It can also be safely concluded that countries that experience low economic growth and high levels of inequality are more likely to witness ]PVSLU[ JVUĂ&#x2026;PJ[Z 6UL KVLZUÂť[ OH]L [V look further than the besieged nation of Somalia to understand the pressing need for development on the continent, with development being the key to overcoming violence, while ensuring peace and security throughout Africa. But in what ways will Africa develop? 4VYL ZWLJPĂ&#x201E;JHSS` PU ^OH[ ^H`Z JHU it successfully develop given the myriad of strategies out there? 6UL VM [OL TVZ[ WVW\SHY HUK [YHKP[PVUHS methods of addressing development in (MYPJH OHZ ILLU VMĂ&#x201E;JPHS KL]LSVWTLU[ HZZPZ[HUJL 6+( ^OPJO JVUZPZ[Z VM Ă&#x201E;UHUJPHS SVHUZ MYVT PU[LYUH[PVUHS KVUVYZ 6+( OHZ \UKV\I[LKS` IHPSLK (MYPJHU countries in times of crises and has assumed importance within the UN 4+. 7YVNYHTTL HZ ^LSS HZ K\YPUN [OL . .SLULHNSLZ :\TTP[ PU However, according to certain academics, such as John Kirton, OLHK VM [OL <UP]LYZP[` VM ;VYVU[VÂťZ . research group, aid and debt relief do not necessarily deliver development. 0UZ[LHK 6+( TH` WVZL [OL WYVISLT of rendering countries dependent on PU[LYUH[PVUHS Ă&#x201E;UHUJPHS SVHUZ -VY Z[H[LZ Z\JO HZ 4VaHTIPX\L HUK <NHUKH 6+( JVTWYPZLZ VM \W [V [V WLYJLU[ VM the national budget. When bad governance and corruption â&#x20AC;&#x201C; two issues that plague

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many African states â&#x20AC;&#x201C; are taken into JVUZPKLYH[PVU [OL ILULĂ&#x201E;[Z VM 6+( seem even slimmer. Weighed down by institutional weaknesses, limited technical staff, accountability issues, and transportation issues, many African JV\U[YPLZ LUJV\U[LY ZL]LYHS KPMĂ&#x201E;J\S[PLZ PU \ZPUN 6+( PU H ILULĂ&#x201E;JPHS ^H` So why is there an emphasis on 6+( NP]LU P[Z TP_LK [YHJR YLJVYK& According to Zaria Shaw, researcher for [OL . YLZLHYJO NYV\W P[ÂťZ H X\LZ[PVU of distance of geography. â&#x20AC;&#x153;We are less WSHJLK PU (MYPJHÂŻ>L KVUÂť[ HJ[\HSS` OH]L people on the ground to do the types of WYVQLJ[Z SPRL [OL TPJYVĂ&#x201E;UHUJL WYVQLJ[ PU )HUNSHKLZO >LÂťYL T\JO TVYL PU]VS]LK WO`ZPJHSS` PU (ZPH HUK P[ÂťZ UV[ ZV MHY from usâ&#x20AC;?. ;OL .YHTLLT )HUR VY Âş]PSSHNL IHURÂť PU [OL )LUNHSP SHUN\HNL [V ^OPJO :OH^ PZ YLMLYYPUN [V PZ H TPJYVĂ&#x201E;UHUJL organization and social business that essentially lends money to the poor, with an easy way for the poor to repay their SVHUZ ;OL .YHTLLT )HUR J\YYLU[S` WYV]PKLZ ]PSSHNLZ ^P[O Ă&#x201E;UHUJPHS services all over Bangladesh. -VY TVYL [OHU `LHYZ UV^ [OL .YHTLLT )HUR OHZ ZOV^U OV^ JYLKP[ worthy borrowers the poor are, which makes it obvious that it has become PTWVY[HU[ [V PUJS\KL [OLT Ă&#x201E;UHUJPHSS` Such daring and creative social I\ZPULZZLZ HZ [OL .YHTLLT )HUR prove that businesses can be used to solve problems rather than simply act HZ WYVĂ&#x201E;[ TH_PTPaPUN LU[P[PLZ 0UUV]H[P]L Ă&#x201E;UHUJPUN TL[OVKZ ^V\SK \UKLUPHIS` ILULĂ&#x201E;[ (MYPJHÂťZ KL]LSVWTLU[ @L[ :OH^ WVPU[Z [V [OL WVZ[ JVSVUPHS backlash that has made it harder for developed nations to work on a level WSH`PUN Ă&#x201E;LSK ^P[O (MYPJHU JV\U[YPLZ than with Asian countries, where the WVZ[ JVSVUPHS WYLZZ\YL ^HZ MLS[ [V H lesser extent. But Shaw believes that the shape of the development model has changed, with 6+( [HRPUN H IHJRZLH[ [V PUUV]H[P]L Ă&#x201E;UHUJPUN Z[YH[LNPLZ +L]LSVWTLU[ strategies have changed â&#x20AC;&#x153;not so much because of a catalyst, but because ^LÂť]L [YPLK L]LY`[OPUN HUK JLY[HPU [OPUNZ KVUÂť[ ^VYRÂš Z[H[LZ :OH^ So where do we go from here? According to Shaw, the private sector will become increasingly involved

PU HZWLJ[Z VM (MYPJHÂťZ KL]LSVWTLU[ :PTPSHYS` [V [OL .YHTLLT )HUR pioneering companies around the world are beginning to include the poor as full economic partners. 0U (MYPJH VUL VM [OL SHYNLZ[ ZVM[ KYPUR IV[[SLYZ *VJH *VSH :()*6 PZ ^VYRPUN carefully to bring its products to markets all over the continent. In many countries of East Africa, the company has adopted a distribution model that involves working with independently owned, ZTHSS ZJHSL KPZ[YPI\[PVU JVTWHUPLZ ^OPJO LTWSV` IPJ`JSLZ HUK W\ZO JHY[Z to transport its products to areas that are not accessible by truck.

The advantages of this system can be seen through the creation of more than 12,000 jobs in East Africa, taking in $500 million in annual revenue. Considering that social businesses and private companies are able to ILULĂ&#x201E;[ [OL SP]LSPOVVKZ VM JV\U[SLZZ individuals, the international community should now make it a priority to build upon these pioneering efforts. Another way to achieve greater development in Africa is through trade. According to Shaw, â&#x20AC;&#x153;trade has always been our vehicle of choice for peace and prosperityâ&#x20AC;?. Yet Africa currently faces certain roadblocks and barriers to EU and American markets. As it currently stands, African nations are incapable of competing in world markets, or of moving their products effectively in order to take advantage of these markets. While opening up markets will surely bring about advantages to African countries, freer trade must be backed by appropriate governance polices, and issues of corruption must be addressed. Change must therefore come within African countries as well. As Shaw so ardently put it, African countries must Â¸Ă&#x201E;YZ[ HUK MVYLTVZ[ YVV[ V\[ [OL LUKLTPJ corruptionâ&#x20AC;?. They must also build on rudimentary infrastructure in order to be a competitive trading partner. â&#x20AC;&#x153;It can simply be a matter of logistics â&#x20AC;&#x201C; they JHUÂť[ NL[ [OLPY WYVK\J[Z [V THYRL[Âš After all, some of the major areas of concern for Africa are the very basics Fall 2011 ArbitrageMagazine.ca

every country must address in order to successfully develop. These include inadequate infrastructure, poor and corrupt governance systems, weak health services, and unemployment, to name a few. By addressing the fundamentals of state development, with the simultaneous help of the private sector, the continent of Africa may have the chance to tackle more root problems than it would be able to, were it to KLWLUK Z[YPJ[S` VU VMĂ&#x201E;JPHS KL]LSVWTLU[ HZZPZ[HUJL HUK ZOVY[ [LYT SVHUZ Bibliography: (KLM\`L (KL Â¸(MYPJH HUK [OL . ! WVSP[PJHS HZWLJ[Z Âš 7W PU Financing development: G8 and UN contributions. Aldershot: Ashgate. *OHYUVa 6SP]PLY HUK 7PLYYL 1HJX\L[ 2007. â&#x20AC;&#x153;What does international aid mean [V [OL . &Âš 7W PU Financing

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development: G8 and UN contributions. Aldershot: Ashgate. Kirton, John. 2007. â&#x20AC;&#x153;Energising sustainable KL]LSVWTLU[! [OL . ÂťZ .SLULHNSLZ WLYMVYTHUJL Âš 7W PU Financing development: G8 and UN contributions. Aldershot: Ashgate. 3`THU 7YPUJL[VU 5 Â¸;OL . (MYPJH (J[PVU 7SHU! OV^ T\JO VM H WHY[ULYZOPW&Âš 7W PU Financing development: G8 and UN contributions. Aldershot: (ZONH[L @\U\Z 4\OHTTHK Â¸-PUHUJPHS Inclusion through Social Busineses,â&#x20AC;? G20 The Seoul Summit ! ;O\ULSS 3HYZ / Â¸;OL 7YP]H[L :LJ[VY HUK Inclusive Business Models,â&#x20AC;? G8 G20 the 2010 Canadian Summits ! 2HILY\RH +VUHSK Â¸9LMVYTPUN -PUHUJPHS Systms and Insitutions: Modernizing the (MYPJHU +L]SLVWTLU[ )HUR Âš G8 G20 the 2010 Canadian Summits !

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Somaliaâ&#x20AC;&#x2122;s famine brings issues of global poverty to the forefront

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The recent famine in Somalia brought the fate of eighty percent of the worldâ&#x20AC;&#x2122;s population to the spotlight. With catastrophic events such as this famine, poverty resurfaces yet again in the global consciousness. A consciousness that is mostly preoccupied with the rapid advances of its more exciting urban economies. Questions are then raised on the prevalent quality of poverty and the horrors of its consequences. The causes of poverty are manifold. War, disease, famine and unemployment being the big players. What steps can then be taken towards addressing the massive social issue of global WV]LY[` [OH[ OHZ HMĂ&#x2026;PJ[LK O\THUP[` for centuries?

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EMPLOYMENT GENERATION Carefully and extensively planned employment programs funded by the government can spur growth in jobs. Industries requiring substantial labour forces can also be given ZPNUPÄJHU[S` SHYNLY HPK MYVT [OL NV]LYUTLU[ -VJ\Z ZOV\SK be placed on developing companies that offer sustainable and long-term jobs to the community. Companies should HSZV I\KNL[ Z\MÄJPLU[S` MVY LTWSV`LL [YHPUPUN HUK YLSH[LK community programs, so that employees and prospective employees can keep their skills relevant and up-to-date. DRAWING ON VARIOUS SOCIAL INSTITUTIONS TO FUND POVERTY FIGHTING PROGRAMS E.G. CHARITIES, RESEARCH INSTITUTIONS, U.N. , NONPROFIT ORGANIZATIONS, UNIVERSITIES. Money funnelled from every organization available adds up to powerful sums that can produce tangible change. When organizations develop an interest, albeit vested, they tend to be more strongly motivated. Organizations that have a concrete goal to achieve with strict project WSHUZ HYL HISL [V LMÄJPLU[S` JVUJLU[YH[L [OLPY LMMVY[Z PU[V WYVK\JPUN JOHUNL -VY [OPZ YLHZVU JOHYP[PLZ ^P[O U\TLYV\Z middlemen organizations should be discouraged to ensure money reaches those in need. Importance should be given [V VYNHUPaH[PVUZ [OH[ MVSSV^ [OL [LHJO H THU [V ÄZO PKLVSVN` YH[OLY [OHU [OL NP]L [OL THU H ÄZO VUL \USLZZ PU L_[YLTLS` dire emergency circumstances. TRANSPARENCY IN GOVERNMENT SPENDING Where and how a government chooses to spend taxpayers’ money and its own revenue should be visible to the media and the common man. This makes governments accountable for their actions and inaction becomes easier to pinpoint and address. It also discourages corruption in NV]LYUTLU[ Z`Z[LTZ -VY L_HTWSL [YHUZWHYLUJ` ^PSS IL LZWLJPHSS` ILULÄJPHS [V JP]PSPHUZ ^OVZL NV]LYUTLU[ TPNO[ be allotting money to its nuclear weapons program instead of to its poverty programs. CANCELLING IMPOSSIBLE TO REPAY WORLD DEBTS Many developing countries are trapped in the cycle of constantly repaying debts that are impossible to pay off. This ensures that they never get a chance to develop and ILJVTL ZLSM Z\MÄJPLU[ ;OL WYPVYP[PLZ VM [OLZL JV\U[YPLZ HYL therefore unnecessarily skewed and the citizens of these debt-ridden nations are devoid of any hope for a better future. PRIORITISING PROGRAMS THAT TARGET FUNDAMENTAL HUMAN RIGHTS Every individual should have access to housing, food, clean water, healthcare and electricity. Technically governments should only move on to other projects after they have made sure that programs that provide these basic amenities to their people are up and running. This might prove to be the hardest step yet.

TAXING THE RICH MORE AND THE POOR LESS Redistribution of wealth will be an imperative step in eradicating poverty. The rich get richer while the poor get poorer. Taxing methods need to be tailored to an PUKP]PK\HS»Z ÄUHUJPHS IYHJRL[ [V LUZ\YL [OH[ \W^HYK ZVJPHS mobility becomes an absolute possibility. BUILDING SELF-SUFFICIENT ECONOMIES *YLH[PUN YLK\JLK KLWLUKLUJL VU VPS L_[LYUHS ÄUHUJPHS aid and imports will help to ensure that alleviation of poverty remains on an upward but permanent curve, as opposed to a temporary revivalist injection in a dying economy. Steps in this area include investment in local infrastructure, transportation and schools that keep the ball of development rolling. Projects to launch new industries and businesses will also need monetary encouragement. EDUCATION As much as poverty is a social condition it is also a mental and psychological cage. With education, impoverished populations are able to visualise their way out of poverty and are able to work towards it in an organised and reliable manner. Education provides training to tomorrow’s ^VYRMVYJL HUK [O\Z MVY[PÄLZ [OL LJVUVT` HNHPUZ[ WV]LY[` Education in rich populations about poverty invokes sentiments of compassion and a sense of responsibility to the misfortunes of the rest of the world. Education also OHZ [OL WV^LY [V IYPUN HIV\[ ZVJPHS JOHUNLZ Z\JO HZ ÄNO[Z against racism and sexism - both conditions that happen to be linked intrinsically with poverty. INVOLVEMENT OF THE MEDIA The media has the power to draw the eye of the global conscience to issues of poverty. It becomes too easy to forget the state of the less fortunate when the world is advancing at lightning speed. With effective media coverage of poverty-related catastrophes, the demand for social change rises collectively all over the world. MICROFINANCING 4PJYVÄUHUJPUN THRLZ ÄUHUJPHS ZLY]PJLZ SPRL PUZ\YHUJL savings and loans available to individuals in developing nations who wish to run their own small businesses. These individuals, suffering from lack of employment VWWVY[\UP[PLZ HUK ÄUHUJPHS IHJRPUN MYVT NV]LYUTLU[Z VY IHURZ HYL HISL [V JYLH[L H WYVÄ[HISL TLHUZ VM Z\Y]P]HS [OYV\NO TPJYVÄUHUJPUN -SV\YPZOPUN ZTHSS I\ZPULZZLZ PU turn, create jobs, provide much needed services to their communities and help stimulate the economy for the long run. ;OL WH[O [V ÄNO[PUN WV]LY[` PZ SVUN HUK JOVJR M\SS VM hurdles. There is a lot of work to be done and not a single second to waste.

Fall 2011 ArbitrageMagazine.ca

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$?>.>B)?#G&1>+BQ R8&# ?>BE>.&.,6# ,8-,# E+>E&**&<# 0).5-E>+&J6# 6(??&66# =&+&# ?>BE+)6&<# >1# B-M>+# +&1>+B6# ).# &A&+"# -6E&?,# >1# ,8&# ?>(.,+"H# R8&# ?&.,+-*# 5>A&+.B&.,# =-6# -=-+&# >1# ,8&# .&&<# ,># <&A&*>E# E>*)?)&6# ,8-,# =>(*<# &.-F*&# 0).5-E>+&# ,># -,,+-?,# ).A&6,>+6# -.<# F(6).&66/# 6># ),# ).6,-,&<# E>*)?)&6# ,8-,# =>(*<# E+>B>,&# ).,&+.-,)>.-*# ,+-<).5# -.<# &.6(+&# &?>.>B)?#<&A&*>EB&.,H# Education Reform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

25 ArbitrageMagazine.ca

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28&.# 0).5-E>+&# 6&E-+-,&<# 1+>B# @-*-"6)-/# ,8&# 0).5-E>+&-.# ).<(6,+)-*# 6&?,>+#=-6#B).)6?(*&H##O.#9:;]/#),#=-6# -# B&+&# 99HY# E&+?&.,# >1# ,8&# VZ[# -.<# ?>BB&+?&#=-6#F"#1-+#,8&#*-+5&6,#6&?,>+/# =8)?8#-??>(.,&<#1>+#_`#E&+?&.,#>1#,8&# VZ[H##O.#,8&#*-,&#9:7]6#-.<#&-+*"#9:;]6/# ,8&# ?>(.,+"# F&5-.# )BE*&B&.,).5# .&=# E>*)?)&6# ,># E+>B>,&# ).<(6,+)-*)L-,)>.H# 0).5-E>+&#-<>E,&<#6&A&+-*#.&=#)BE>+,a &%E>+,# E>*)?)&6/# ).?*(<).5# ,8&# 9:;S# b[+>?*-B-,)>.#>1#,8&#$%E>+,#$%E-.6)>.# O.?&.,)A&6#4?,c#-.<#,8&#9:;K#b$BE*>"B&.,# 4?,cH##R8&6&#E>*)?)&6#&.6(+&<#,8-,#<)+&?,# 1>+&)5.#).A&6,B&.,#=-6#A)-F*&/#-**>=).5# 0).5-E>+&#,>#F&?>B&#-#6&+)>(6#?>.,&.<&+# >.#,8&#).,&+.-,)>.-*#B-+P&,H#R8+>(58>(,# ,8&# 9:S]6/# A-+)>(6# E+>5+-B6# =&+&# )BE*&B&.,&<# ).# >+<&+# ,># &.?>(+-5&# ,8&#5+>=).5#).<(6,+)-*#6,+(?,(+&#-.<#,># -??&*&+-,&#,8&#?>(.,+"#,>=-+<6#8)58&+#

6P)**&</# B>+&# ,&?8.>*>5"T<+)A&.# -.<# 8)58&+#A-*(&<#&?>.>B)?#-?,)A),)&6H## R&?8.>*>5)?-*#Z&A&*>EB&.,Q 2),8# 5>A&+.B&.,# 6(EE>+,# ).# ,8&# 9:S]6/# 0).5-E>+&J6# ,&?8.>*>5)?-*# ).<(6,+"# F&5-.# -# ?-*?(*-,&<# ,+-.6),)>.# -=-"# 1+>B# *-F>(+T).,&.6)A&# E+><(?,6# -.<# ,>=-+<6# ,8&# <&A&*>EB&.,# >1# B>+&# ,&?8.>*>5)?-**"# -<A-.?&<# E+><(?,)>.# 1-?)*),)&6H##R8&#d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To a lesser degree, domestic enterprises also played a role in the continued industrial growth of Singapore. As the Singapore government believed that an emphasis on large international companies would effectively increase productivity and long-range economic development, major governmentsponsored promotional efforts were put into practice, with a focus on higher productivity projects.

The Petroleum Factor: Petroleum and petrochemicals are among Singapore's main industrial and economic sources of wealth. In the late 1980s, Singapore was the world’s third largest oil-trading center and the center MVY YLÄUPUN WL[YVSL\T (KKP[PVUHSS` P[ was the second largest builder of drilling rigs. Their facilities for repairing and maintaining existing rigs and tankers were among the most competitive in Asia. In 1981, when oil prices began to fall, Singapore felt both negative and positive consequences. The collapse of oil prices dealt a severe blow to oil exploration. The impact was felt widely and immediately in everything from reduced orders for rig construction to lowered occupancy of luxury apartments as foreign petroleum workers returned home. Their vulnerability was based on their heavy dependence towards outside markets. It SLK [V [OL SLHKLYZ VM :PUNHWVYL PU ÄUKPUN a way to buffer their country’s response to perturbations in the world markets and to take advantage of their country's ability to respond to changing economic conditions. Unable to control so much

that affected their nation's prosperity, they concentrated on those domestic institutions that could be controlled. The consequence was an economy characterized by a seemingly paradoxical adherence to free trade and free markets, in combination with a dominant government role in macroeconomic management and government control of major production enterprises. 6UL V[OLY ILULÄ[ MYVT [OL MHSS PU VPS prices included the availability of cheaper LULYN` :PTPSHYS` YLÄULYPLZ ^LYL HISL to invest in equipment and technology ULJLZZHY` [V LUHISL [OLT [V YLÄUL H ^PKL variety of crude oils to obtain a greater proportion of high valued products from [OL YLÄUPUN WYVJLZZ 7L[YVSL\T YLÄUPUN alone made up 28 percent of Singapore's manufacturing output in 1985, although by 1988, it had dropped by half because of a decline in petroleum production and growth in other industries. Singapore HSZV ILULÄ[LK PUKPYLJ[S` ^OLU SHYNL VPS importers, such as Japan and the United States, obtained higher real incomes from lower oil prices, enabling them to increase their imports from Singapore and other countries. Likewise, the extraordinarily high KVTLZ[PJ ZH]PUNZ YH[L WYV]PKLK ÄUHUJPHS reserves, which enabled Singapore to weather economic storms, such as trade recessions, and generated a pool of domestically controlled capital to serve the long-term interests of Singapore. However, since the high savings rate was a result of carefully formulated government programs, this included a compulsory contribution of up to 25 percent of all salaries to a governmentcontrolled pension fund. The government also operated a set of government-owned enterprises and held stock in additional domestic and foreign ÄYTZ .V]LYUTLU[ SLHKLYZ KLLWS` H^HYL of Singapore's need to sell its services in a competitive international market, continually stressed the necessity for the citizens to master high levels of skills and to lower their personal wishes for the good of the community. The combination of devotion to free-market principles, the need for internal control and discipline in order to adapt to the demands of markets ensured they would continue to progress in the international markets.

Legacy: Developing countries should take notice that it takes time, patience, perseverance and determination to become a more important player in the global markets. Singapore clearly demonstrated this by gradually instating well thought reforms. Another key aspect of Singapore’s transformation was government intervention and regulation of the market and production sectors. The government clearly had a long-term objective, but adjusted its policies based on current realities. During the oil price collapse, the Singapore government quickly realized that they needed to be less vulnerable to market shocks. Therefore, they reacted appropriately by instating reforms aiming towards the high-end manufacturing sector and higher-skilled labour markets. While the political atmosphere in Singapore has been criticised for its laissez-faire approach to democracy, its political environment was a primary force in helping to stabilize the economy. What other countries should also learn from Singapore is that political stability, high level of education, open-market policies, modernized infrastructures, attracting foreign investor policies and sustainable long-term economic objectives are key elements to ensure a country’s success in today’s competitive markets.

Illustrations by Jae Lee aka Keming

Fall 2011 ArbitrageMagazine.ca

FINANCE & ECONOMICS With another global economic recession looming, eyes have turned we need to be educated on the relevant topics of today and what burdens we can expect to shoulder. In this issue, we confront the for students, and stay true to our theme by touching on the link between child poverty Canadian economic prosperity.

Confounding Co onfounding ClichĂŠ off Economic History Ro Role of Protectionism and nd Government in the US Econo Economy (vs. the claim of free market economics)

Child Poverty & Cana Canadian Economic Prosperity Child Poverty in n Canad Canada, and how to reduce it.

Budding Investors Introduction to Investment Opportunities for Students (TFSA).

Wall Street Destroying Weak Regulation by Purchasing House of Representatives Donations by Wall Street hault all government legislations which call for economic reforms.

Finance & Economics By William Shaub, Online Editor

THE CONFOUNDING CLICHÉ OF ECONOMIC HISTORY

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the realities of economic history in the United States and elsewhere requires major adjustments to what is called ‘free lead to what should be called ‘really existing free market theory’, and this is the economic theory that is actually applied in practice. For this, we can take a look at a rather perplexing example – a country that supposedly developed based on market principles and free enterprise – namely the United States. In the mid-18th century, the U.S was one of the richest

societies (in terms of resources) in the world, yet it was pre-industrial. Adam Smith, the supposed father of modern economics, had advice for the 13 colonies. Smith requested precisely what today’s economists recommend to the third world, essentially advocating that the U.S keep to its comparative advantages and produce what it’s best at producing. At the time, the U.S was most capable then exporting it to England, all while importing superior British manufactured goods. Perhaps unpredictably in the eyes of Smith, the U.S gained its independence from Britain, and proceeded to completely ignore Smith’s free market advice. Under Alexander Hamilton, the liberated colonies immediately set up high protective barriers (such as tariffs) to try to bar superior British textiles, then later, British steel. This allowed the new country to construct its own manufacturing base under specialized protective barriers and by other forms of incredible state intervention. A staple in American manufacturing in the 19th century was cotton, which is often

referred to as the fuel of American industrialization. The U.S produced cotton and became the world’s leading cotton exporter following its elimination of a massive indigenous population, which according to Howard Zinn, could have totalled “thousands upon thousands” of Indians. The conquering of almost half of Mexico and annexation of Texas was also in order, which was land needed to monopolize cotton and “bring England to [their] knees,” to quote the Jacksonian Democrats. The U.S. then ramped up production of this 19th century ‘fuel’ through its development of a slave society, which was followed by the criminalization of black life for the purpose of exploiting their labor. Thus far, American society clearly industrialized in opposition, not supposed adherence, to market principles. Rather, by radical violation of free enterprise undertaken to develop (change) its comparative advantages. A brief look at the 20th century also reveals exactly this revelation, or the concept that the U.S. did not develop and modernize because of a devout faithfulness to market principles. Ronald Reagan is now considered a champion of free markets, and the 1980 s a decade in U.S. history in which According to a comprehensive review of the Reagan era in Foreign Affairs by Clyde Sanger, a Senior Fellow for International Finance at the Council on Foreign Relations, “The postwar chief executive with the most passionate love of laissez faire, presided over the greatest swing toward protectionism since the 1930s.” Sanger noted some thematic irony, namely that advocation of market discipline is a tool used by those with power, who manage to avoid the ravages of the market as a result of astonishing state intervention. Those without power are then exposed to the

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n d e r s t a n d i n g economic theory, in law and in principle, requires a certain perception of the world. One perception requires a thorough understanding of the world as one would like it to be. The other, which is perhaps more in touch with reality, requires an acceptance of the world as it actually is, and for that, one must look to cases and examples in history.

Finance & Economics

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By William Shaub, Online Editor

free market discipline, and are therefore left with little, if any, protection from the subsidized structures of power. This theme is indeed quite dominant in the economic history of the past three centuries. The Reagan administration was following a common course of action that has been in practice in the U.S. (and elsewhere) for its entire existence. However, modern neo-liberals have shed new light on the free market theory charade. In 1995, Newt Gingrich extolled the victories of the free market and methodically issued tough lectures about the immoral culture of dependence of the American poor and working people. He did this while boasting rather proudly to the business community (the Chamber of Commerce) that Reagan had “granted more import relief to U.S. industry than any of his predecessors in more than half a century.” In a scholarly review by Patrick Low, a GATT secretariat economist, he estimates that the restrictive effects of Reagan’s policies measured at approximately three times those of other leading industrial countries. A major piece of America’s dedication to free market principles includes the

transfers of taxpayer funds to private corporations, generally hidden under the masks of ‘defense’ or ‘security.’ However, pretending that these (purposefully) initiated transfers by the Pentagon to private industry weren’t economically effective isn’t, in fact, realistic. The U.S automotive, steel, industries would never have been able to survive international competition, innovate or develop through research without these fundamental violations in market principles. Whether this radical protectionism in a state-guided mercantilist system is a position worth advocating is perhaps a worthy subject for debate, but its usage is unquestionably in substantial market theory in principle. Since our analytical focus is centered on the world as it is, our attention should be focused on really existing free market theory, or the economic theory that is actually applied. President Barack Obama, unlike his predecessor, hasn’t shied away from the belief and acceptance that protectionism is effective (and profoundly disguised).

Of course, when his administration’s market interventions saved thousands of General Motors and Chrysler in 2009, American media commentators eagerly termed them ‘free market infringements’ and ‘giveaways’ to undeserving corporations and the unions. However, when President Reagan subsidized an enormous amount of GM’s capital costs in the 1980 s to save the company’s management from a massive restructuring bankruptcy, that was simply necessary in the country’s effort to save American industry. In 2011, President Obama handily announced a ‘new’ federal project free market policy has always been: “a joint effort by industry, universities and the federal government to help reposition the United States as a leader…” In desperate need of economic growth before his reelection bid that’s just one year and half away, the U.S President turned to the application of what existing free market economic theory has always been: an incredibly confounding cliché. April 2011 ArbitrageMagazine.ca

Biz Start&Up Finance Economics !"#$%&'()%*#+,*-.#/'*00#1)%'2)

CHILD POVERTY AND CANADIAN ECONOMIC PROSPERITY +(-3'#'(#0(-)4##56667666866696#

31 ArbitrageMagazine.ca

Fall 2011

thereof, when it comes to the question of ending child poverty. Despite ratifying the UNCRC (United Nations Convention on the Rights of the Child) two decades ago, Canada has actually experienced an increase in the child poverty rate between the mid 1990s and 2005. Wilson notes, ¸-VY THU` MHTPSPLZ P[»Z ]LY` KPMÄJ\S[ [V get out of poverty. There isn’t enough money to feed the children, clothe them properly, or even enough money to pay bus fare or look for a job.” Potential measures that may help to alleviate the issue include the PTWSLTLU[H[PVU VM VMÄJPHS NV]LYUTLU[ policies that address funding for on-job training, the provision of low-cost or free child-care and the introduction of tax incentives for minimum-wage workers For further inspiration on how to alleviate the issue of child poverty, Canada (and other countries) need only look to a particular cluster of nations in

Northern Europe. The Nordic countries consisting of Denmark, Finland, Norway and Sweden - have rated amongst the [VW Ä]L JV\U[YPLZ ^P[O [OL SV^LZ[ JOPSK poverty rate (under 5%) for the past several decades. A primary reason for this low rate relates to the effective implementation of governmental policies that seek to elevate children and their families out of poverty. These policies include generous time allocations for maternity and paternity leave, job security for families, and universal day care. The goal of ending child poverty in Canada is both strategically possible HUK LJVUVTPJHSS` ILULÄJPHS 4VYL [OHU ILPUN H WYVISLT VM TVYHS ZPNUPÄJHUJL P[ is also a matter of protecting the future

economic prosperity of Canada. By helping the current generation of children, we help to ensure the wellbeing of future generations of children, both in Canada and worldwide.

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urrently, almost half of the world’s population lives on less than $2 a day, while approximately 14 million children under [OL HNL VM Ä]L ^PSS KPL MYVT THSU\[YP[PVU in 2011. When most individuals in North America think of child poverty, they conjure the televised images of children in far away countries, standing with bloated bellies and empty eyes. While this image is certainly one of the many faces of child poverty, the majority of Canadians are unaware that child poverty exists, and is indeed prevalent in Canada. Despite the relative economic and ÄUHUJPHS ZLJ\YP[` LUQV`LK [OYV\NOV\[ Canada, over 15% of Canadian children live below the poverty line. The standard criterion that determines the severity of child poverty focuses on a number of factors: a lack of access to education, inadequate access to nutritional food and a shortage of available health care. No matter how much those in the developed world would like to be able to turn off the television to avoid the issue, it’s time to step up to the plate and encourage government representatives to strengthen focus on issues that address child poverty in Canada. In addition to there being a social obligation to help end child poverty in Canada, there are also economic HUK ÄUHUJPHS ILULÄ[Z [V YLK\JPUN [OL number of children who lack basic resources (food, education, health care). The Organization for Economic Co-operation and Development (OECD) reports that “failure to tackle the poverty and exclusion facing millions of families and their children is not only socially reprehensible, but it will also weigh heavily on [a] country’s capacity to sustain economic growth in years to come.” For Grant Wilson, President of Canadian Children’s Rights Council, it’s a matter of “political will” or a lack

Finance Finance &Biz & Economics Biz Economics Start Start Up Up !"#$%&'()%*#+,*-.#/'*00#1)%'2) By Betty Yan, Staff Writer

Introduction to investment opportunities for students

Illustration by Laura Gonsalves

tudents often neglect to invest because many of us have a tight budget paying for tuition, housing, food, and so many other expenses. Shouldn’t investments be made when we are able to set aside the necessary funds? In reality, waiting to acquire wealth and then invest is not the right strategy. Being poor now is all the more reason to begin saving for the future. Even though most students do not have the income to finance longterm investment, there are still options available. Putting your money in a savings account is a start, but with interest rates of less than 1% per year at banks, this isn’t the way to make your money grow. A better alternative is the Tax-Free Savings Account (TFSA), which allows Canadians 18 years and older to save up to $5000 annually and pay no tax on investment income. No tax on earnings generated from the TFSA means you can build savings faster. Unused TFSA contribution room carries over to future years. So if you only save $1000 this year you can save $9000 the subsequent year. You are also able to make tax-free withdrawals and recontribute the amount you withdraw in the following years. The TFSA offers higher interest rates than many savings accounts and includes various investment options, such as mutual funds, Guaranteed Investment Certificates (GICs), stocks, and bonds. These investments differ in risk and profit, and it is a good idea to have a mixture of different investments to protect your savings. A mutual fund pools money from numerous people and invests it according to the fund’s objectives. Professional money managers make decisions to buy and sell investments, such as bonds and stocks. You purchase units in the fund, and your shares rise or fall with the value of the investments. Mutual funds are not risk-free and

cannot guarantee returns. Traditional GICs provide a secure investment that guarantees your principal with a stated interest rate. You do not need to worry about market fluctuations, making GICs more suited to shortterm investment. When you buy a bond, you are lending money to a company so that it can expand. The company in return promises to pay you interest when your money is returned. When you buy a stock, you own a share in a company and the value of your share depends on how well the company does. Bonds tend to be less risky than stocks because bondholders know they can at least get their principal investment back so long as the company does not go bankrupt. The investment market does

not have to be an intimidating place for students. To open a TFSA, you can contact your financial institution, credit union, or insurance company and provide them with your social insurance number and date of birth. Any amount of money you are able to put away now will acquire compound interest and make a positive difference for your future wealth, so get started!

Fall 2011 ArbitrageMagazine.ca ArbitrageMagazine.ca

32 32

Finance & Economics

Source: nobadtrips.com

By William Shaub, Online Editor

ArbitrageMagazine.ca Fall 2011

Finance & Economics

Source: nobadtrips.com

By William Shaub, Online Editor

Wall Street Destroying Weak Regulation by Purchasing the House of Representatives Wall Street heavily donates to House Speaker John Boehner in an effort to destroy even the weakest regulations.

o serious person concerned with banking regulation was pleased with the end result of the House Democrats’ 2010 SLNPZSH[P]L YLZWVUZL [V »Z ÄUHUJPHS crisis. Critics like Matt Taibbi weren’t L]LU YLTV[LS` ZH[PZÄLK KLZJYPIPUN [OL Dodd-Frank Wall Street Reform and Consumer Protection Act as a “copout, a Band-Aid on a severed artery...” representing the end of the best opportunity we had to do something real about the criminal hijacking of (TLYPJH»Z ÄUHUJPHS ZLY]PJLZ PUK\Z[Y` The corporate legion on Wall Street, however, severely disagrees with Taibbi and the assertions of other critics. Wall Street is quite concerned about the reforms that Dodd-Frank introduced, and it’s proving its point by shifting resources from supporting the old majority faction of the United States’ one party system to the new one: the House Republican caucus. Specifically, New York hedge fund, Paulson & Co., has contributed $61,050 to House Speaker John Boehner’s campaign since January. Moore Capital Management LLP “employees” proffered $53,000, and Cantor Fitzgerald LP donated $45,000. According to the business press (Bloomberg News) not a single one of [OLZL ÄYTZ JVU[YPI\[LK [V )VLOULY»Z 2010 election bid. Why donate to the most powerful member of the House now? January happened to be the month that the GOP controlled House voted along party lines to cut the budget of the Commodity Futures Trading Commission, a bureau writing most of the new derivative-trading rules. The House Appropriations Committee, led by Rep. Paul Ryan, voted to limit funding for the new consumer protection bureau. The consumer

protection bureau is also absent a leader, courtesy of Republican opposition to Elizabeth Warren and now Richard Cordray. In fact, financial firms are so concerned about Warren, that they’ve picked up on rumors that she might run against Sen. Scott Brown in Massachusetts. Their response to the Y\TVYZ ^HZU»[ ZSPNO[" [OL /\MÄUN[VU Post’s Amanda Terkel pointed out that they donated 16% of Brown’s total campaign contributions for the second quarter of 2011, which amounts to about $320,000 in funds. The author of what Taibbi perhaps correctly deemed a “cop out”, Rep. Barney Frank (D-MA), told the liberal press that the opposition party’s YLM\ZHS [V M\UK [OL ÄUHUJPHS YLN\SH[VYZ who are supposed to implement Dodd-Frank is effectively destroying the legislation. “They can’t do the new duties. They can’t even carry out some of the old ones,” he insisted. Wall Street’s extensive lobbying against Dodd-Frank is strikingly unprecedented. Former labor secretary Robert Reich writes that “the six largest banks spent $29.4 million on lobbying last year, according [V ÄYT KPZJSVZ\YLZ · YLJVYK ZWLUKPUN for the group.” The Center for Public Integrity has reported that “the :[YLL[ HUK V[OLY ÄUHUJPHS PUZ[P[\[PVUZ LUNHNLK HIV\[ SVII`PZ[Z [V ÄNO[ +VKK -YHUR ¶ TVYL [OHU Ä]L SVII`PZ[Z for every member of Congress – and have hired almost the same number to delay, weaken, or otherwise prevent its implementation.” Is “taking the money” out of politics the way to limit Wall Street’s control of the government? Our problems run deeper than that, although it would certainly help. Campaign funding totals are a remarkable indicator

of elections and policy, evidenced by the intense lobbying that turned Dodd- Frank from what the Wall Street Journal originally called “sweeping regulation” into a “cop out.” The real answer remains clear: break up the big banks through democratizing policies and nationalize them to a local level by giving stakeholders (employees) and communities a role to play when major decision-making must take place. In essence, the market power of economic giants must be reduced. Without dismantling the concentrated authority that allows them to undermine democratic functions, [OLPY WVSP[PJHS HUK ÄUHUJPHS WV^LY will continue to subordinate John Boehner, the Republican caucus, and the rest of the U.S government. For all that Dodd-Frank and its reforms weren’t, they were something. We’ve gotten to the point where anything is too much, yet the economic stakes are atmospherically high, and future stability for main street is in the balance.

Fall 2011 ArbitrageMagazine.ca

CULTURE

we measure livability to exploring our social fascination with society is today, even compared to a not-so-distant past.

Livable Cities = Sustainable Cities Sustainability a growing factor in a City's Livability Ranking.

Women's Human Capital

Loaded on Pills: How North America is Losing its War Against Depression Over-dependence on drugs not the solution; leads to further depression.

Apple Nation: Follow the Leader Apple's Genius Marketing and Impact on Consumer Culture.

Norway Retailers Pull Violent Games Off Shelves after Massacre

real life violence

Biz Start Up Culture !"#$%&'#())*+',-#(.'//#0+%.1+

Livable Cities = Sustainable Cities

37 ArbitrageMagazine.ca

Fall 2011

here are several surveys conducted each year that rank the livability of cities worldwide. Companies use these surveys to determine how much they must pay employees who are relocated to cities with unfavourable living conditions. Livability scores are based on numerous categories, (such as unemployment rates, housing prices, crime, healthcare and culture) each of which are weighted differently and receive a certain number of points. In the Economist Intelligence Unit’s 2010 Global Livability survey, Vancouver was number one – in part due to hosting the 2010 winter Olympics and Paralympics, which boosted the city’s scores for infrastructure, culture and environment. Toronto came in H[ MV\Y[O HUK *HSNHY` SHUKLK ÄM[O amongst other top-ten cities in Finland, Austria and Australia. In Mercer’s North (TLYPJH YHURPUNZ =HUJV\]LY ^HZ ÄYZ[ Ottawa 14 th, Toronto 16 th, Montreal 21st and Calgary 28th, while worldwide Vancouver was third and Toronto was 8th. DEFINITION OF SUSTAINABILITY ( UL^ KLÄUP[PVU VM ^OH[ THRLZ H city most livable is now emerging: sustainability. This was marked by Mercer’s establishment of a new category this year - best Eco-city based on water quality, waste removal, quality of sewage systems, air pollution HUK [YHMÄJ JVUNLZ[PVU PUBLIC TRANSPORTATION FOR HIGHER SUSTAINABILITY In this category Calgary was 1st, with Ottawa at 3rd, Montreal and Vancouver at 13th and Toronto at 39th. For high and low-ranking cities alike, there remains room for development in terms of the percent of employees who use public transit and bike/walk to work, and air quality ratings. Some cities are setting notable examples of how to tackle these issues. The STM in Montreal recently won the American Public Transportation Association’s award for Outstanding Public Transportation System in North America between 2007-2009. Since 2006, the STM gained 19.5 million

Biz Start Culture Up !"#$%&'#())*+',-#(.'//#0+%.1+

more rides. The STM, who are currently manufacturing new metro cars in Montreal, remains a good role model, minimizing their carbon footprint with a 60 % Canadian content requirement. Another notable accomplishment in [OL W\ISPJ [YHUZWVY[H[PVU ÄLSK PZ )4>»Z Inspiro subway for Poland - an energyLMÄJPLU[ HS\TPU\T [YHPU [OH[ PZ recyclable. Such technologies are more pertinent than ever with rapid climate change and our current economy. A recent Texas Transportation Institute study at Texas A&M University determined that in 2009 American commuters spent 4.8 billion hours of travel time and 3.9 billion gallons of fuel, costing $115 billion. Another study showed that New Yorkers save $19 billion a year using sustainable transport. Most commuters who cycle to work in North America are males under 25 years of age who don’t abide by rules

for pedestrians or motorists (resulting in accidents and deaths). Most American cyclists over 25 fear being in a serious accident. In Europe, equal numbers of men and women, most of whom are middle-aged, bike to work. These bikers abide by rules of the road and tend to bike slower. Infrastructure in Europe has increased the percentage of workers biking to work. The Dutch have invested in bike lanes with special safety features, including separate [YHMÄJ SPNO[Z MVY J`JSPZ[Z ;OL YVHKZ are divided into 4 areas, including a bike lane protected with its own curb. The more safe biking conditions are, the more appealing to potential users. Proof of this lies in Montreal, where a clearly designated bike lane (buffered by a raised median) has turned the province into the cycling capital of *HUHKH ;OL Z\JJLZZM\S )P_P W\ISPJ bicycle sharing system launched in 2009 and had its millionth ride less than 6 months later. Now the system has popped up in Ottawa, Minneapolis, Melbourne, London and Toronto.

Fall 2011 ArbitrageMagazine.ca

Biz Start Up Culture !"#$%&'#())*+',-#(.'//#0+%.1+

NEW CONCEPTS FOR «GREEN» >OPSL WVSPJPLZ HYL RL` [V YLK\JPUN our carbon footprint, the best way to get business owners on board is by having incentives to test new concepts for sustainable living. As a part of Toronto’s Climate Change Action Plan, which aims to reduce Toronto’s greenhouse gas emissions by 80% by 2050, the city has implemented the Eco-Roof Incentive Program. The City won the Federation of Canadian Municipalities’ FCM-CH2M Hill Sustainable Community Award for ILPUN [OL ÄYZ[ *P[` PU 5VY[O (TLYPJH [V have a bylaw which requires green roofs on new development, and provides funding to developers. An “Eco-roof” is one of two things—a “green roof” that supports vegetation or a “cool YVVM¹ [OH[ YLÅLJ[Z [OL Z\U»Z [OLYTHS energy. Eco-roofs help reduce urban heat, manage stormwater, enhance biodiversity and improve air quality HUK LULYN` LMÄJPLUJ` NEW FUTURE FOR SUSTAINABILITIES CITIES Americans have adopted some exemplary practices as well. California has established a law which requires building owners to disclose their

39 ArbitrageMagazine.ca

Fall 2011

buildings’ energy ratings to potential buyers and renters. The city hopes that by having to disclose this information, building owners will upgrade their buildings’ energy systems to raise marketability. California also encourages cities to plan development near public transit or with other existing buildings in order to receive a portion of the state’s $6 billion transport funding. All new online energy in Austin, Texas must be carbon-emission free, and the city has developed a car sharing program for workers who commute by public transit or bike, but still need a car on occasion. Seattle has created a sustainable on-site sewage treatment plant for a residential project that cost less than a traditional system. The sewer water maintains a particular temperature in order to create a thermal loop heat exchange system that heats the entire project. To fare well in future livable-city surveys, leaders will have to rely on FIT (fully integrated thinking) to develop the best strategies to improve their communities. Local and Federal governments will need to be adaptable, creative and willing to take risks to upgrade parks and water

quality, improve recycling programs and research natural gas and other green technologies. Some of these changes are costly, but are crucial to long-term stability. Plus, if changes are left unmade too long, costs will only increase.

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INVESTING IN WOMENâ&#x20AC;&#x2122;S HUMAN CAPITAL .P]L H THU H Ă&#x201E;ZO HUK `V\ MLLK OPT MVY H KH` ;LHJO H THU [V Ă&#x201E;ZO HUK you feed him for a lifetime. â&#x20AC;&#x201C;Chinese Proverb.

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his ironically accurate proverb is proving to be consistent within research about the empowerment of poverty-stricken women through business, considering that China is one of the countries taking great pains to educate its female WVW\SH[PVU :PUJL TPJYVĂ&#x201E;UHUJL 4-0 ^HZ originally established â&#x20AC;&#x153;to ensure that 175 million of the worldâ&#x20AC;&#x2122;s poorest families, especially women, receive credit for ZLSM LTWSV`TLU[ HUK V[OLY Ă&#x201E;UHUJPHS and business services,â&#x20AC;?1 it is heartening [V JVUĂ&#x201E;YT [OH[ [OL ]HYPV\Z WYVNYHTZ are exceeding expectations. Studies show that 84% of the 113.3 million people receiving microloans in 2005 were women. A woman that is disenfranchised, homebound, and uneducated cannot start a business, advise a policy, or support her family. That woman will not gain skills, knowledge, or experience with handouts from nonNV]LYUTLU[ VYNHUPaH[PVUZ )\[ H Z[\K` published in World Development I` )LY[ Dâ&#x20AC;&#x2122;Espallier and associates states that TPJYV Ă&#x201E;UHUJPHS PU]LZ[TLU[Z PU ^VTLU TVYL ZV [OHU PU TLU WYVĂ&#x201E;[ MYVT IL[[LY repayment performance, lower credit risk, and a â&#x20AC;&#x153;share-the-wealthâ&#x20AC;? mentality [OH[ [YPJRSLZ KV^U Ă&#x201E;YZ[ [V MHTPSPLZ HUK Ă&#x201E;UHSS` [V SHYNLY JVTT\UP[PLZ This means that educating women about business practices will end up rewarding both investor and investee more than handing out food or cash will. In India, when educated, women are more active and more productive in the economy of their country. â&#x20AC;&#x153;Menâ&#x20AC;&#x2122;s wage labor supply tends to be 6#

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relatively unresponsive to increases in education,â&#x20AC;? writes Paul Shultz in his book Investment in Womenâ&#x20AC;&#x2122;s Capital, while â&#x20AC;&#x153;women with more education supply more of their time to market work.â&#x20AC;? It has also been shown that countries with stronger laws of education and less gender disparity (like China) make the most economic use of socially mobile and educated women. No country with a primary education enrollment level of less than 10% has been able to improve its Gross National Product (GNP), but certain countries that have been able to boost enrollment to 20-30% were able to improve their GNPs at least [V ^YP[LZ . )HSH[JOHUKPYHUL senior lecturer at the University of Delhi.

Investing in women, whether literally with micro-loans or fundamentally by providing education, will always pay off. Teach a woman to read, and you have a teacher. Give a woman an education, and you have inspired a community. Provide her with resources, and you have enabled a thriving economical entity.

Fall 2011 ArbitrageMagazine.ca

*\S[\YL By Jorge T. Armand, Staff Writer

LOADED ON PILLS

miling sparse teeth, he looked up in victory over the pool table, with a shaved head, black framed glasses, silver earrings, and a tattooed arm that read

¸7YVK\J[ VM 0UÅ\LUJL ¹ That’s how Blaze Convict and I met; I later found out his name is Blaise Convey. One hot summer afternoon, we were sucking on beers. The phone rang. Blaise got up and answered it; then, silence. His brother had just jumped off of the MacDonald bridge in Halifax, Nova Scotia. The suicide of Patrick *VU]L` H THQVY PUÅ\LUJL PU OPZ SPML plunged Blaise into a massive wn as Paxil. Launched in 1992 by the pharmaceutical company SmithKline Beecham, now GlaxoSmithKline (GSK), Paxil is used to treat major depression, obsessive compulsive disorder, and anxiety. On October 16, 2009, The Globe and Mail reported that the most popular antidepressants in Canada are selective reuptake inhibitors (SSRIs). Best known under brand names like Paxil, Prozac, and Zoloft, these drugs excite the brain by releasing serotonin, a neurotransmitter that contributes to feelings of well-being. Paxil is the most potent of these drugs and has the shortest half-life of those in the the SSRIs family. According to IMS Health Canada, a private company that tracks prescription drug sales, 22.6 million prescriptions for SSRIs were made in 2008, generating a total of $1.05 billion for pharmaceutical companies. Like thousands of other Paxil users, Blaise reacted terribly to the effects of the drug. Bringing his

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HOW NORTH AMERICA IS LOSING ITS WAR AGAINST DEPRESSION

hands to his forehead, he laments, “I can barely remember what was going through my mind, mostly because I was completely blank or numb. I wasn’t able to feel a goddamn thing besides fear”. Dr. Srinivasan Pillay is a world-renowned expert in stress and anxiety, Clinical Professor of Psychiatry at Harvard Medical School, and the award-winning author of

¸3PML <USVJRLK! 9L]VS\[PVUHY` 3LZZVUZ [V 6]LYJVTL -LHY ¹ He believes that

¸H NVVK WO`ZPJPHU PZ HS^H`Z \UJVTMVY[HISL ^OLU ZVTLVUL PZ \UKLY TLKPJH[PVU HUK UL]LY V]LYLZ[PTH[LZ OV^ T\JO PZ RUV^U HIV\[ H KY\N ¹ Paxil is known to have side effects including, but not limited to: sexual dysfunction, insomnia, sedation, headaches, suicidal thoughts, and an increase in birth defects. Wait, most drugs are said to have some side effects, right? Frighteningly enough, however, it gets worse - the minute you decide to stop taking Paxil. Back in 1999, when the internet was somewhat primitive, there was no information available about Paxil’s severe withdrawal process. Even within the medical community, little about this issue was well known. One man, who

¸JV\SKU»[ ZSLLW HU`^H`Z¹ due to his Paxil withdrawal symptoms, decided to change that. Frank Streicher created Quitpaxil. VYN [OL ÄYZ[ L]LY ^LIZP[L [V HZZPZ[ Paxil users experiencing withdrawal symptoms. The site gathers all available information on the subject of Paxil withdrawal and features an ongoing

blog that discusses users’ experiences with the drug.

¸0 ^HZ YLHSS` X\P[L HZ[V\UKLK H[ OV^ X\PJRS` P[ HSS OHWWLULK" ^P[OPU ^LLRZ 0 ^HZ PU\UKH[LK ^P[O O\UKYLKZ VM SL[[LYZ ([ VUL WVPU[ 0 ^HZ NL[[PUN H O\UKYLK SL[[LYZ H KH` 0 TLHU P[ ^HZ YLHSS` Q\Z[ PUZHUL 0 OHK [V I\PSK H IPNNLY ^LIZP[L¹ Frank recalls. Following the guidelines of Quitpaxil.org, Blaise began to carefully reduce his Paxil KVZHNL >OLU OL ÄUHSS` Z[VWWLK [HRPUN it completely, all hell broke loose.

¸7O`ZPJHSS` P[ ^HZ HSTVZ[ LX\HSS` HZ IHK HZ [OL HJ\[L HSJVOVS ^P[OKYH^HS 0 L_WLYPLUJLK HM[LY T` IYV[OLY»Z KLH[O 0 ^LU[ [OYV\NO [OPUNZ SPRL IYHPU aHWZ WHUPJ H[[HJRZ HUK \WZL[ Z[VTHJO )\[ [OL ^VYZ[ WHY[ ^HZ KLMPUP[LS` [OL WZ`JOVSVNPJHS LMMLJ[Z 0 ^HZ \UZ\YL VM T` V^U L_PZ[LUJL" L]LY`[OPUN SVVRLK [^V KPTLUZPVUHS 0[»Z JHSSLK KLWLYZVUHSPaH[PVU 0 OHK H JVUZ[HU[ PU[LUZL MLHY [OH[ 0 JV\SK UL]LY L_WSHPU¹ remembers Blaise. You might be wondering why a drug like Paxil ever made the market, or why it’s still so popular. In 1988, before 7H_PS ^HZ VMÄJPHSS` VU [OL THYRL[ GSK (formerly Smith Kline Beecham) conducted a clinical Paxil test in Yugoslavia; however, what happened in Yugoslavia was never exposed to the public eye. The trial consisted of participants suffering from major depressive

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disorders. The trial was divided into two phases: in phase one, all patients took Paxil. In phase two, patients were randomized into two groups, one of which remained on Paxil while the other was given a placebo. Following phase two, the placebo patients began experiencing massive Paxil withdrawal symptoms. As a result, these patients entered a depressive state that was far worse than their initial one. On August 14, 2011, in The Superior Court of the State of California case, Lacuzong vs SKB, it was argued that the Yugoslavia trials weren't intended to seek withdrawal symptoms; the patients, rather, were simply seen as suffering a relapse. In 1992, Paxil was launched with no withdrawal warnings. As Dr. Pillay recalls,

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¸>OLU ^L MPYZ[ Z[HY[LK WYLZJYPIPUN [OLZL KY\NZ `V\ ^V\SK NL[ H WOHYTHJL\[PJHS YLWYLZLU[H[P]L IYPUNPUN `V\ WLUZ IVVRZ VMMLYPUN [PJRL[Z [V [OPUNZ ¹ He also argues that recent studies show that repeated exposure to a certain name may cause an unconscious bias in consumers. Contrary to Canadian direct-toconsumer drug advertising restrictions, media outlets in the US are infested with prescription medicine ads that barely slur the side effects of these drugs. Dr. David Reiss, who has performed more than 10,000 psychiatric evaluations, says he stopped seeing pharmaceutical representatives twenty years ago. He asserts,

¸/HSM VM ^OH[ [OL` ZHPK `V\ JV\SKU»[ OH]L MHP[O PU ;OLZL KH`Z 0»SS NV [V WYLZLU[H[PVUZ

HUK WPJR \W ZVTL VM [OL SP[LYH[\YL I\[ L]LU ^P[O [OH[ `V\ OH]L [V IL JHYLM\S ;OL` HYL [YHPULK [V ZLSS HUK 0»T UV[ [OLYL [V I\` ¹ Further, he alleges that

¸;OLYL»Z H SV[ VM WYLZZ\YL [V IHZPJHSS` ZLKH[L WLVWSL VY NL[ [OLT KY\NNLK [V Z\WWYLZZ Z`TW[VTZ HUK UV[ YLHSS` KLHS ^P[O ^OH[»Z NVPUN VU ¹

hese days, it seems relatively easy to get a hold of these drugs, or even to feel like you might need them. Amanda Clark, former Paxil user and JLY[PÄLK 7LLY :WLJPHSPZ[ H[ [OL (ZZLY[P]L Community Recovery LLC in Georgia, says she has been to over nine doctors in the past year. According to her,

¸H SV[ VM KVJ[VYZ HYL WPSS W\ZOLYZ ¹ One of Amanda’s doctors prescribed her Paxil after a rapid consultation. Amanda experienced vomiting, total loss of hair, nightsweats, intense nightmares, and extreme sensitivity to sunlight.

¸0[ [VVR TL [OYLL TVU[OZ [V MLLS UVYTHS HNHPU 0 ^V\SK ZH` P[»Z \W [OLYL ^P[O NL[[PUN VMM HU[P WZ`JOV[PJZ ¹ says Amanda. Advertisements promise you won’t mind the extra forty pounds, that the love of your life won’t mind your sexual shortcomings, and that you won’t kill yourself – you might be too sedated. On top of that, the average doctor might be ready to spray his antidepressant candy shotgun all over the consultation room. Once you’ve experienced all this, and when you no longer feel like walking over to the pharmacy to get more pills, you can have it brought right to your door! In the United States, you can send your prescription to Medco Health Solutions, a company that serves the needs of more than 65 million people, and have antidepressants delivered. Medco made more than $59.8 billion in 2009 – that’s more than three times the total GDP of Nicaragua. Medco refused [V KPZJSVZL ZWLJPÄJZ HIV\[ [OL YL]LU\L made from antidepressant sales. Dr. David Muzina, National Practice Leader for Medco's Neuroscience Therapeutic Resource Center, says Medco’s claim records detect when someone falls off therapy or compliance with medication. A highly trained pharmacist may reach out to the patient and begin a consultation over the phone.

Fall 2011 ArbitrageMagazine.ca

*\S[\YL By Jorge T. Armand, Staff Writer

r. Muzina says antidepressant medication strategies should be looked at carefully. The prescription of a one year long antidepressant supply is a common mistake. After one starts antidepressant therapy, doctors should schedule about 7 follow-up appointments with the patient. Dr. Muzina explains,

¸<UMVY[\UH[LS` H TPUVYP[` VM WH[PLU[Z HJ[\HSS` ZLL [OLPY WYLZJYPIPUN WO`ZPJPHU H[ [OL YLX\PYLK MYLX\LUJ` HM[LY [OL` Z[HY[ HU HU[PKLWYLZZHU[ 0 [OPUR [OH[»Z H JYP[PJHS TPZ[HRL THKL I` THU` JSPUPJPHUZ ¹

¸:OV\SK ^L UV[ IL H^HYL VM UV[ MHSSPUN PU[V [OL [YHW VM Q\Z[ L_WSHPUPUN L]LY` SPML L]LU[ HZ H TLU[HS PSSULZZ& 0 HS^H`Z KPZJV\YHNL WLVWSL MYVT SVVRPUN H[ [OLTZLS]LZ [OYV\NO [OL SLUZ VM [OLPY KPHNUVZPZ 0[»Z YLHSS` PTWVY[HU[ [V YLHSPaL [OH[ [OL WPJ[\YL VM `V\YZLSM L_[LUKZ MHY IL`VUK `V\Y ZWLJPMPJ ]\SULYHIPSP[PLZ 0[ PZ PTWVY[HU[ [V LUJV\YHNL WLVWSL [V UV[ SPTP[ [OLPY PKLU[P[` I` SVVRPUN H[ [OLTZLS]LZ [OYV\NO [OL SLUZ VM TLU[HS PSSULZZ ¹

43 ArbitrageMagazine.ca

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Anyone who suffers from mental illness or from damage caused by medication should be made aware by doctors that there are other approaches to treatment. Dr. Pillay LUJV\YHNLZ IYVHKLY HUK TVYL ÅL_PISL ways of thinking. He wonders,

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LETTERS TO THE LEGAL NOTE: EDITOR: J<66&'"58('K##L<98'K##,%5"535':'K##-4&#!?@.-?!A0# ZHOFRPHV /HWWHUV 7R 7KH (GLWRU 7KH\ PXVW EH '56(&9#+(9#5(3><9&#35"G#87#8%565(C### (PDLO OHWWHUV#DUELWUDJHPDJD]LQH FRP

$OO OHWWHUV RU SLFWXUHV VXEPLWWHG PD\ EH SXEOLVKHG E\ WKH $5%,75$*( XQOHVV H[SUHVVO\ IRUELGGHQ E\ WKH VHQGHU 1DPHV ZLOO EH ZLWKKHOG RQ UHTXHVW 7KH $5%,75$*( FDQQRW EH KHOG UHVSRQVLEOH IRU WKH UHWXUQ RI XQVROLFLWHG PDWHULDO $OO VXEPLVVLRQV PD\ EH HGLWHG IRU SXQFWXDWLRQ JUDPPDU VW\OH DQG OHQJWK 1RW DOO PDWHULDO PD\ EH SXEOLVKHG Fall 2011 ArbitrageMagazine.ca

Culture "#$%&'#($)*+,,-'./$)0+11$23-0&3

APPLE NATION: FOLLOW THE LEADER 45&$6(7&3$(1$866,&$*+39&0-'.$+':$-0;$-*6+<0$('$<(';=*&3$<=,0=3&>

istory has birthed many empires—empires of men, nations and dynasties that led the direction of the world. Empires including: Persia, Rome, Spain, and Britain. These empires ruled and shaped the thoughts of the masses in their time. Each one is different from the last. The world has come a long way. Fastforward to today, and the design of the empire state is but a footnote. Enter the master of today’s age, in this, the age of media; here power is KLÄULK [OYV\NO KLTHUK ;LJOUVSVN` is atop that list. Stand awe to the American dreamers, the Silicon Valley champions, and the nerd dictators of the tech world: Apple. “Think Different.” Today, empires are corporations, built by marketing. (WWSL OHZ YLKLÄULK IYHUKPUN blurring the lines between product and producer. They now lead the world in technology marketing and have managed to infuse their products into personal consciousness. “I’m a Mac,” the statement is ubiquitous in popular culture. The statement means I am a Mac user. Many consumers are dedicated to the products and the culture they represent. They represent Apple and by extension, they think different. With branding, nations have become essentially irrelevant. The lines of statehood are simply for show or otherwise for the conservative minded. Identity has broken free

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from its cultural connotation and now refers directly to the trends to which people subscribe. Consumer culture demands it to be so. Corporations are very concerned with the buying power of the middle class and their complacency in regards to social status. Apple’s success is reliant on those two factors. Corporate culture requires consumers to always be ready for change; disposable is the new invaluable and upgradeable is the new irreplaceable. Apple has reframed what it means to be a good product. A good product it appears would mean one that is constantly evolving for better. Hip hop artist Kanye West said in a recent press conference,

“If Steve Jobs respected [OL ÄYZ[ JVTW\[LY ZV T\JO we wouldn’t have iPods and iPhones today.” It is plugs like this that give insight into the height of Apple’s success and its integration into society. Frankly, no one refers to any other mp3 devices other than iPods and no music repository is as successful as iTunes. iPods and iTunes have become synonymous words in music culture. Apple leads the world in techinnovation; and due to their success, their start-up story is fading in the wind. In fact, many consumers do not know much about The Woz

(Steve Wozniak; Apple Co-founder). They might however remember him for pioneering Segwey polo and from the TV show, Dancing With The Stars. After helping to develop the brand, Steve number two chose to disappear from the big chair and left Steve number one (Steve Jobs) to steer the ship in his own direction. That direction and message seem to be simple: innovation over invention. The idea has struck gold, or silver, if you follow market trends. Innovation in this case would mean re-articulating products, ideas and images and re-constructing them into something entirely new. To be reasonable, Apple has not necessarily created wholly new products. Before iTunes controlled the music service market, there were many different online music stores like Rhapsody; before the iPad revolutionized the purpose of the tablet computer there were swanky pen tablets and before the iPhone revolutionized the mobile phone… well the rest is history. Apple is successful because they brand the most expensive and aesthetically pleasing software and hardware, and market them towards ‘everyday’ people.

;OL SP[[SL THU MLLSZ PTWVY[HU[" OL MLLSZ LSP[L" HUK HIV]L HSS he feels unique. Apple branding is years ahead of companies their senior such as Sony,

Culture 3++45/2*/,'&#6"#7+*,2%#8%9%5:4%

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Microsoft, Motorola and even current competitors RIM and Google. Apple sells more than technology and even more than a lifestyle. It is the sense that you’d be crazy not to be amazed by their products that makes them such an important presence. Other companies are stuck playing catch up and understandably so. Every new mobile device is asked the same question, could this be the iPhone killer or the iPad killer? Whether they are better or not, the comparison alone negates their presence in the tech market. It would seem at this point that companies can only wait for Apple to release a product then try to one-up them for a few months. Seems low, but you have to play dirty

to beat Apple’s squeaky-clean image. There is no other company as good as Apple when introducing a new product; they simply cannot be beat. There is a formula and I think I may be on to something. Listen closely: White background, snappy indie music, impact words and phrases (“revolutionary, “intuitive” “phenomenal”) followed by a close-up of the product –possibly a 360 view. Important Apple executive wearing everyday apparel, cool looking regular people wearing bright colours doing interesting things. Visual cue, “hey that’s me” or “I’d like to do that”, (apparently you can do it if you were an Apple person). End with the Apple logo and that’s it folks. No clutter, no

noise. It’s you without Apple versus your life with Apple. It is a great contrast, appealing to your need to be better. Genius indeed.

Fall 2011 ArbitrageMagazine.ca

INTERNATIONAL AFFAIRS To explore our poverty theme, we take steps to shed some light on the famine in Southern Somalia and bring attention to womenâ&#x20AC;&#x2122;s human capital.

01 02

International Affairs

The

Curious

Case

Dissappearing International Students

Pinpointing the Cause of a Decreasing Number of International Students across the Developing World, and What It Might Mean for Universities Going Forward

he addition of international students to a university student body has always been seen as a great example of a win/win situation. The student enrolling in the university receives a level of education that he/ she would most likely not receive in his/her own home country. They might learn a new language (or better their understanding of a language they already know). They might also develop new contacts in another part of the world, a crucial advantage in an everglobalizing community. 7KH XQLYHUVLWLHV RQ WKH RWKHU KDQG JHW WR FKDUJH KLJKHU WXLWLRQ IHHV

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International Affairs 43+5(&#00,+6(0+672/8+9/211+:&#/,&

UN DECLARES FAMINE IN SOUTHERN SOMALIA While millions are affected by famine in the south, hundreds of thousands leave to neighbouring countries in hopes of escaping famine.

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or the first time since 1992, the United Nations has declared famine in Somalia. According to the UN, the situation is deteriorating rapidly in the two affected regions, southern Bakool and Lower Shabelle, with 3.7 million Somalis - nearly half of the population, predicted to be in a situation of crisis. An estimated 2.8 million individuals are located in the south. The famine has resulted in more than 160,000 Somalis seeking refuge in neighboring countries like Ethiopia, Kenya, and Djibouti. Most of them arrive in terrible physical conditions – malnourished and exhausted. *P]PS *VUÅPJ[ Following the overthrow of Mohamed Siad Barre’s regime in 1991, Somalia has since been struggling with ineffective governments and civil war. In place today is a weak and corrupt transitional government. Although backed by the United States and its allies, the Somali government is barely capable of addressing the famine. Today, much of the government’s efforts are focused on preventing AlShabaab, an insurgent group linked to al-Qaeda, from overtaking the Somali capital of Mogadishu. The famine was not something to

be unexpected in the Horn of Africa. For several months, the United Nations had warned of an impending crisis. Failed harvests, combined with violent JVUÅPJ[ PU THU` HYLHZ NYHK\HSS` NH]L rise to food insecurity. The United Nations -VY [OL ÄYZ[ [PTL PU HSTVZ[ [^V decades, the United Nations employed the term ‘famine’ to describe the situation in Somalia – a word it so sparingly uses. In order for a famine to be declared, ZWLJPÄJ TLHZ\YLZ VM THSU\[YP[PVU hunger, and mortality must be met. Amongst other criteria, a famine can only be declared when more than 30 percent of the population is malnourished, and when a state witnesses large-scale displacement. Declaring a situation as a famine does not legally obligate the UN or its TLTILY Z[H[LZ [V JHYY` V\[ HU` ZWLJPÄJ actions – but it does provide the region with global attention. The United Nations World Food Programme (WFP) said it will begin providing Somalia with vital supplies in the next few days. In addition to airlifting emergency aid, the WFP is looking to open several new land and air routes in order to securely access the millions of Somalis in need. In 2009, Al-Shabaab had banned

foreign aid agencies to access central and southern areas of Somalia, but has recently declared that it would allow aid into famine-stricken parts of the country. B. Lynn Pascoe, UN Under-SecretaryGeneral for Political Affairs, joined by Augustine Mahiga, Secretary-General’s Special Representative for Somalia, visited Somalia’s capital in July. The visit, which consisted of several meetings with Somali leaders, included talks on the end of the transitional period. The visit also signaled the UN’s solidarity with the Somali population amid times of suffering. Mr. Pascoe claimed that the Somali leadership had made it clear that the famine would be made a top priority. Sources Used UN website: http://www.un.org/apps/news/ story.asp?NewsID=39106&Cr=somali&Cr1= http://www.un.org/apps/news/story.asp?NewsI D=39113&Cr=somalia&Cr1= BBC news: http://www.bbc.co.uk/news/worldafrica-14211905 Washington post: http://www.washingtonpost. com/world/africa/un-famine-in-somalia-is-killingtens-of-thousands/2011/07/20/gIQAbV3iPI_story. html

Fall 2011 ArbitrageMagazine.ca

SCIENCE & TECHNOLOGY Science & Technology is a fascinating section not because of the

help you digest it all by bringing you up to speed with the ISP War on Privacy, looking at smart phone alternatives for your beloved iPhone, and seeing the fundamental role cell phones are now playing in shaping developing countries.

Role of Cell Phones in Developing Countrie s Cell Phones in Developing Countries (health, education, agriculture).

The ISP War on Piracy

iPhone Killers Alternatives to the iPhone.

Science & Technology

!"#$%&'#$&($)&*+'#$,"&-#.$+-$ /#0#'&1+-2$3&4-56+#.

he popularity of mobile devices stems largely from their global reach. An estimated 4 billion people access a world of knowledge and information through the internet in their cell-phones. This number is four times larger than what personal computers are able to offer. Interestingly, two-thirds of these avid cell-phone users reside in developing nations; and according to the World Bank, in Africa the subscription numbers are growing rapidly, perhaps because of the technology’s ability to ZPNUPÄJHU[S` PTWHJ[ HYLHZ VM OLHS[O education, and agriculture in the developing world. As the developing world intensely lacks central infrastructure such as

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landlines and internet work-stations, some would argue that the region has a distinct need for mobile phones, it is able to act as a replacement for things [OH[ [OL ÄYZ[ ^VYSK [HRLZ MVY NYHU[LK Mobile phones are essential for the development of the third world. The New Yorker’s Ken Auletta uses the Sudanese billionaire Mo Ibrahim as an example. Ibrahim’s former company, Celtel, brought mobile phones to Africa. Auletta states how invaluable mobile phones have proven to be in Liberia, a country entirely without landline service. In such context, mobile phones have the ability to provide opportunities in areas that need it most, and which were lacking it in the past.

The World Bank equates the phenomena of mobile banking -- or “m-banking”—and its past success to the new potential mobile devices have for educating the developing world. This potential is based purely on how many people use mobile devices. For instance, the relatively new recent ability to do online banking on cell-phones has proven to be as successful as it is useful. The World Bank envisions educational processes in developing countries rising with the same success. An example of the mobile phones’ innovative ability to educate is seen PU [OL :JPLU[PÄJ (UPTH[PVUZ ^P[OV\[ Borders initiative.

Source: nobadtrips.com

By Zack Larmand, Staff Writer

Science & Technology

Source: nobadtrips.com

By Zack Larmand, Staff Writer

A team from the University of Illinois is developing a two-minute educational animation video viewable on mobile phones. The project, called the “Sustainable Development Virtual Knowledge Interface”, wants to help low-literate and low-income learners to understand basic concepts and have access to relevant information. Following the same lines of “m-banking”—and now “m-education” —is the new initiative of “m-health”, which is already making its mark in Africa. The Alternative Press reports that a lack of landlines and hospital beds is combated by a rich mobile phone network. Africa’s Aid, MDNet or Mobile Doctor’s Network, is comprised of 2200 doctors from Ghana

and all of Liberia’s 143 doctors. It allows physicians to text and call each other for free. 0U 2LU`H V[OLY ILULÄJPHS \ZL MVY mobile phones has been witnessed. Isaiah Esipisu, for example, has encountered a mobile phone application called M-Farm. The application, developed by three female students in Nairobi’s Strathmore University, is meant to help combat climate-driven price uncertainty in agriculture. Esipisu watches Kenyan farmer William Muriuki as he uses his phone to physically identify places with high demand. He literally texts the word “price” followed by “cabbage” and the place name, “Embu”, and sends it to 3535. Almost immediately he receives a

reply stating “Cabbage Ext Bag 126Kg selling at Ksh400 in Embu as of 201104-01.” Substituting different locations and products, the farmer Muriuki is HISL [V JVUÄKLU[S` PKLU[PM` VW[PTHS markets for his product. Health, education, and agriculture are very important examples of the needs present in the developing world. The mobile phone is proving to be an incredible tool for preparing to meet the demands of these needs. As technology progresses and human networks continue to grow, the mobile phone will prove to be one of the most important tools for connecting the developing world to meaningful opportunities and privileges.

Fall 2011 ArbitrageMagazine.ca

Science & Technology !"#$%&'()*+%,&#-,.&/*01#2).33#4&'),&

THE ISP WAR ON PIRACY !!!!!!!!!!!!!!!

Internet service providers are taking problems of copyright security into their own hands

irates beware: the White House has conscripted Internet Service Providers into becoming Internet vigilantes to curb stolen intellectual property through a ‘six strikes’ plan. The rag tag group consisting of ISPs, including Comcast, AT&T, Verizon and Time Warner Cable will try to become more active in curtailing the wanton downloading of copyrighted materials by some of their users. T h e y w i l l s e n d n o t i c e s to subscribe r s whose conne c tions are allegedly being used for content theft; this isn’t new. What’s new is

if a user receives multiple notices and doesn’t respond the ISP may take further action. Actions range from reducing download speeds to cutting off access altogether. The Center for Democracy and Technology (CTD) has already leveraged its concerns about the new rules, which will be policed by the Internet providers. “Among our concerns, we are particularly disappointed that the agreement lists Internet account suspension among the possible remedies. We believe it would be wrong for any ISP to cut off s u b s c r i b e r s , e ve n te m p o r a r i l y, based on allegations that have not

been tested in court,” said CTD in a statement. ISPs will inform offenders of copyright laws and even how to check their computer and network security. It will even direct users to where they can find legally downloadable content. The thought is that this will push Internet users toward using legal services accessible online, such as iTunes or Netflix. According to the release, ISPs won’t give names of offending users to copyright holders. This will keep users from being chased by companies with lawsuits in hand.

This marks a major victory for the Recording Industry Association of America and the Motion Picture Association of America (MPAA), who have collectively battled ISPs for years to take a more active role in assuring that their users do not illegally pirate copyright content. They believe this move will protect intellectual properties, and turn the tide on the heavy losses they’ve experienced through pirating. The MPAA has a large stake in Canada as well as the parent of the Canadian Motion Picture Distributors Association. It convinced Canada to become one of the few countries in the world to enact anti-camcording laws back in 2009. It wouldn’t be out of the ordinary if these heroes come to Canada to exert a little pressure and see if they can convince us to give up our evildoing ways.

55 ArbitrageMagazine.ca

April 2011

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«This move will protect intellectual properties, and turn the tide on the heavy losses [the MPAA] has experienced through pirating.«

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Science & Technology !"#$%&'%&(#)*+,#-(.//#0&+(%&

iPhone Killers More than a few new smart phones are threatening to knock the iPhone off the number one spot

It seems the iPhone has dominated the market ever since it touched down into the mobile phone ecosphere. Certainly, its appeal is undeniable â&#x20AC;&#x201C; its great apps, beautiful user interface, and screen like no other naturally makes it stand out from the rest of the pack. Many manufacturers have taken an attempt on its life. Have a look at these beasts before you put your hardearned money into a smart phone. /LYL HYL Ă&#x201E;]L P7OVUL HS[LYUH[P]LZ [OH[ you might not have known about, each with its own unique advantage

Samsung Galaxy S II

With a form factor very similar to the iPhone on the throne right now, the Samsung Galaxy S II aims to pick up right where the beloved Samsung Galaxy S left off. According to Engadget, the Samsung Galaxy S IIâ&#x20AC;&#x2122;s screen display quality is remarkable (800px x 480px), and competes with the previously unrivaled iPhone 4. The Galaxy S II has a strong 8-megapixel camera and can record 720p video, much like the iPhone 4. The Galaxy S II runs on the Android operating system, which plays very competitively with the quality and quantity of apps available for the iPhone. It runs on a dual-core processor â&#x20AC;&#x201C; talk about a smart phone!

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Fall 2011

BlackBerry Bold 9900

Although the Bold 9900 doesnâ&#x20AC;&#x2122;t have a camera (5-megapixel) that stacks up comparably to the Galaxy S 00 P[ÂťZ KLĂ&#x201E;UP[LS` KLJLU[ LUV\NO [V [HRL casual photos with. It also comes with around 8GB of storage, which is more than enough for any average user, and is extendable to 32GB. Keep in mind that the BlackBerry Bold also has a touch screen face. The BlackBerry Bold 9900 will be running on BlackBerry OS 7, which you can get a sneak preview of here. I have a Blackberry Bold 9700 and love it to death. I think the keyboard on the Bold is really what sealed the deal; I can input text faster than I could on a touch screen and with more precision.

Motorola Atrix

The Motorola Atrix also has Ă&#x201E;UNLYWYPU[ YLJVNUP[PVU [LJOUVSVN` that means only you will be able to gain access to your phone. Similar to the Samsung Galaxy S II and the HTC Sensation, Motorola is running the Android operating Z`Z[LT HUK ^HZ [OL Ă&#x201E;YZ[ [V OH]L H great implementation of Flash into the Firefox browser, whereas neither Appleâ&#x20AC;&#x2122;s iOS or RIMâ&#x20AC;&#x2122;s BlackBerry OS are compatible with it yet. As icing on the cake, the folks over H[ ;LJOUV)\MMHSV OH]L X\HSPĂ&#x201E;LK [OL Motorola Atrix to be a great iPhone 4 killer.

BlackBerry Torch 9810

Although the BlackBerry Torchâ&#x20AC;&#x2122;s ZJYLLU PZ Z\MĂ&#x201E;JPLU[ W_ _ W_ RIM decided to include a keyboard on the Torch 9810, which users can slide out for use. Although more and more users are starting to adapt to touch screens, the good chunk of users that prefer QWERTY keypads for texting and L THPSZ ^PSS KLĂ&#x201E;UP[LS` ^HU[ [V SVVR PU[V a BlackBerry Torch 9810.

HTC Sensation

Out of all the iPhone Killers on the list, the HTC Sensation has the ZJYLLU YLZVS\[PVU W_ _ W_ that comes closest to matching the P7OVUL W_ _ W_ ;OL /;* Sensation runs on Android, and comes equipped with the HTC Sense UI add-ons. It also comes with a nice 8-megapixel camera with 1080p video recording, although I wouldnâ&#x20AC;&#x2122;t sell the camcorder just yet. That said, it only has 1GB of internal storage. Although it is expandable via microSD, youâ&#x20AC;&#x2122;ll have to invest in a high-capacity MicroSD card if you ^HU[ [V YLJVYK [OVZL OPNO KLĂ&#x201E;UP[PVU video clips.

Science & Technology !"#$%&'%&(#)*+,#-(.//#0&+(%&

Your Weapon of Choice?

There are a myriad of great devices out there that can serve your needs better than the iPhone 4, if you can Q\Z[ [HRL ZVTL [PTL V\[ HUK ÄUK [OLT With that said, the iPhone 5 is on its

way out—and with the threat of iMessage looming over BBM, you might want to take a step back and wait to see just what happens to the WSH`PUN ÄLSK PU H ML^ TVU[OZ 9\TV\Y has it that the iPhone 5 might be coming out near mid-September.

!"#$%#%$&'#%(#)$**#%+'#$,+(-'. Fall 2011 ArbitrageMagazine.ca

Science & Technology 89%5:/-;$&<:"/%="3/6&7>%?$3@@%A/-$"/ !"#$%$&%'&(")

NORWAY RETAILERS PULL VIOLENT VIDEO GAMES OFF SHELVES AFTER MASSACRE Are violent video games unfairly targeted as the cause of violence?

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orway’s biggest retailers are pulling 51 video games from shelves following the terrorist attacks in Oslo that left over 90 people dead. Coop Norway and Platekompaniet pulled numerous titles, which included Call of Duty, Sniper Ghost Warrior, Counter Strike and Homefront. Time’s Techland blog reported statements from Coop Norway’s Retail Director, Geir Inge Stokke, saying that the decision was made when they realized the scope of the attacks. “Others are better suited than us to point to the negative effects of games like these,” he said to Norway’s Rogalands Avis newspaper. Stokke said it was an appropriate time to pull the titles. It’s worth noting that many of these titles are the same ones listed in Anders Behring Breivik’s ‘Knights Templar Log.’ He wrote that he thought Call of Duty: Modern Warfare 2 was a great simulator to prepare him for the killings. “I just bought Modern Warfare 2, the game. It is probably the best military

59 ArbitrageMagazine.ca

Fall 2011

simulator out there and it’s one of the hottest games this year,” he said in a post on February 2010. Even World of Warcraft, a fantasy/ roleplaying title, was pulled from shelves, in spite of being somewhat benign. Breivik used Warcraft as a cover for his activities to explain long periods when he was absent and unable to pick up the phone. Pulling these from shelves has alarmed some people in the video game community, who believe that the violent actions which happened in Oslo are not the fault of games and that this may bring on a string of censorship within the medium. Video games have often been in the limelight before when it has come to acts of violence or juvenile delinquency. In June, a Supreme Court decision struck down a law banning violent video games for sale, saying that the new regulation prevented free speech. Justice Antonin Scalia in his majority opinion said video games are like books or movies in that they communicate ideas. The Justices also added that evidence

regarding the violent effects of video games was lacking. They stated that there was little to tie violent behaviour to violent video games. So it’s surprising that two major retailers in Norway would pull violent video games while the music that Breivik listened to or the movies he watched stay on shelves in spite of being listed in his log as well. It should be noted that World of Warcraft reached 12 million subscribers in October of last year and Modern Warfare 2 has sold 22 million units since its release in 2009. With no timeline as to when the stores are bringing these titles back, it looks like Norwegians are going to have to look elsewhere for these games. “We have to think very carefully about when to bring these goods back. The economy is of no importance,” remarked Stokke.

EMPLOYMENT:

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LEGAL NOTE:

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BIZ START UP With some direction and words of advice, small business can be a provide you the tools to get the ball rolling ahead of your future competitors. On top of categorizing franchises as a viable option graduates, the issue also features a revealing exclusive interview with Bump 50:50s Magic Man, Dan Tanenbaum, who has vulnerable side of Tanenbaum, whose brutal honesty will leave you wanting more.

Entrepreneur Watch: Bump 50:50s Magic Man, Dan Tanenbaum, Digitises the Raffle

Interview with Dan Tanenbaum/Look into Entrepreneurship.

Owning a Franchise - A Feasible Option for Graduates

Practicality and feasability of owning a franchise.

Biz Start Finance Culture Trends Science International Student Biz Entrepreneurship Business Start&Co. Up Up Technology Economics Affairs By Prachi Kamble, Staff Writer

BUMP 50:50!S MAGIC MAN, DAN TANENBAUM, DIGITIZES THE RAFFLE THE MAN BEHIND THE VISION SHEDS LIGHT ON THE VALUE OF WORKING HARD, GOING WITH YOUR GUT AND EMBRACING FAILURE PRACHI KAMBLE, STAFF WRITER

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*)( +%5( &#"'( 9( #/8'2*%5%&$( 7'25)&<( #2*( ,)44',*)2<( 5*#&/917( ,)"%,( #&/( &)6( #&( '&*2'72'&'12( %&( *+'( *',+&)4)$%,#4( 3%'4/:( F%5( ,#2''2( 7#*+( %5( 3#5,%&#*%&$<( *)( 5#.( *+'( 4'#5*:( B)( 3%&/( )1*( +)6( +'( 5,147*'/( +%5( '&*2'72'&'12%#4( 57%2%*<( !( 57)-'( *)( E#&( #0)1*( +%5( ,#2''2( #&/( 'G7'2%'&,'5:( Can you tell us about your background? Where did you grow up and where did you go to school? I)2( +%$+( 5,+))4<( !( 6'&*( *)( I)2'5*( F%44( %&(B)2)&*)(#&/(3)2(1&%8'25%*.<(!(6'&*(*)( J%,+%$#&(C*#*'(K&%8'25%*.: What did you take at university? !($2#/1#*'/(6%*+(#(;L(%&(L/8'2*%5%&$: That is very far removed from business and technology. !*(%5(*+'(312*+'5*(*+%&$:(B',+&)4)$.(6#5( &)*( '8'&( #2)1&/( #*( *+'( *%"':( !*( 6#5( =15*(,)"%&$(*)(6+'&(!(6#5(%&(5,+))4:(!( "'#&(,)"71*'25(6'2'()1*9(!(#"(&)*(#( +1&/2'/(.'#25()4/M(;1*(%&(*'2"5()3(*+'( *',+&)4)$.( *+#*( 6'( +#8'( #5( %*( 5*#&/5(

*)/#.<(%*(6#5(&)*('8'&(,4)5': The computer business was a risky venture back then. A big risk? !*(6#5(&)*('8'&(#(015%&'55:(J%,+%$#&( C*#*'( 6#5( #( *'5*%&$( $2)1&/( 3)2( "#&.( *+%&$5:(B+'(!&*'2&'*(6#5(*'5*9"#2-'*'/( #*(J%,+%$#&(C*#*':(!(*+%&-(%*(6#5(,#44'/( N2)/%$.( 0#,-( *+'&:( C)( !( +#/( #,,'55( *)( )&'( )3( *+'( 3%25*( %*'2#*%)&5( )3( *+'( !&*'2&'*: Did that spur your interest in the area of technology? !(+#8'(#46#.5(0''&(%&*'2'5*'/(%&(&'6( *+%&$5( #&/( %&( +)6( *+'( 6)24/( 6)2-5<( #4*+)1$+( *',+&)4)$.( 6#5( &)*( 8'2.( 2)015*( )2( "'#&%&$314( 0#,-( *+'&:( L&/( %*(6#5(54)6M( Did you know in school that this was the path you were going to take? (O):(O)*(%&(*+'(4'#5*:(!(6#5(#&(#2*(/%2',*)2( 3)2(*6'48'(.'#25:(L/8'2*%5%&$(6#5(*+'( /%2',*%)&(!(6#&*'/(*)(*#-':(!(,)"'(32)"( #( 4#2$'( 3#"%4.( )3( '&*2'72'&'125( #&/( 2%5-(*#-'25:(!*(6#5(&)*(5)"'*+%&$(*+#*(!( 6#&*'/(*)($'*(%&*)(%""'/%#*'4.:

Science Finance International Entrepreneurship &Biz &Technology Student Biz Economics Start Business Start Trends Affairs Up Co. By Prachi Kamble, Staff Writer

!"#$%&'("&)"*'&"+%&)"+,,'(+$&'-./ Did your arts degree and your advertising background prepare you for entrepreneurship? !"()"%)&"&0+%1"$%.&0+%*"2'$--."32'3$2'4" .)5" 6)2" '%&2'32'%'5240+3/" 7)5" 854&" 0$9'"&)"&254&".)524'-6"$%("0$9'"3')3-'" $2)5%(" .)5" #0)" :$;1" .)5" 53" $%(" 4533)2&" .)5/" <(9'2&+4+%*" 854&" #$4" $" ,$&52+%*"32);'44"6)2",'/ When did you reach the point where you were ready to try something new? When you felt ready to leave behind the security of your advertising career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Biz Start Finance Culture Trends Science International Student Biz Entrepreneurship Business Start&Co. Up Up Technology Economics Affairs By Prachi Kamble, Staff Writer

You have to be strong hearted in business. No hiring friends and relatives? !"# $%# &%'(# )'*+,-# .# /"012# 34'%# *# '%1*5 64&%# 4+# *# 3%*'6$%*67# 8%9*0:%# .# ,+"/# 63*6# 63%(# *'%# +"6# ;"4+;# 6"# :9'%/# <%# "&%'7# .# ,+"/# 63*6# 63%(# /411# /"',# 63%4'# *::# "))# )"'# <%=# 806# .# /411# +"6# >0:6# 34'%# '%1*64&%:#)"'#63%#:*,%#")#467#.)#63%(#3*&%# 3%*'6# *+2# 63%(# /*+6# 46-# 63%(# *'%# /4115 4+;#6"#?06#4+#63%#3"0':#63%+#.#3*&%#+"# ?'"$1%<#/463#467#.6#2"%:#+"6#*))%96#<%7 Usually creative people are reclusive and prefer being by themselves but in entrepreneurship you need to be a people!s person, constantly interacting and communicating with people. Would you count yourself in that category of creative people for whom entrepreneurship is socially challenging? .#242#:6*+250?#9"<%2(7#.#1"&%#*#9'"/27#.# *<#&%'(#9"<)"'6*$1%#4+#)'"+6#")#?%"?1%7# !3*6#9'%*64&%#'%910:%#4:#+"6#<%=#.#*<# *#@%<4+47#.#*<#*#<4221%#934127#!3%'%#4:# +"634+;#.#14,%#<"'%#63*+#*+#*024%+9%7# A:#*+#*'6#24'%96"'-#4)#("0#3*&%#*#;'%*6# 9"+9%?6-# 46# 4:# +"6# %+"0;3# 0+1%::# ("0# 9*+#:%11#46#6"#*#914%+67#!3*6#4:#"+%#")#<(# :0?%'?"/%':7# .# 1"&%# ?'%:%+64+;# *+2# .# 1"&%#$%4+;#4+#)'"+6#")#?%"?1%7 Being outgoing is a crucial quality to have as a businessperson then? .6#4:#4<?"'6*+6#6"#$%#?*::4"+*6%#*$"06# /3*6%&%'#("0#*'%#2"4+;7#!3%'%#4:#+"635 4+;#/"':%#63*+#:"<%"+%#6*1,4+;#*$"06# 63%4'#$0:4+%::#*+2#46#:"0+2:#14,%#63%(# 3*6%# 467# .# 1"&%# /3*6# .# 2"-# .# $%14%&%# 4+# /3*6#.#2"#*+2#.#,+"/#46#4:#;"4+;#6"#$%# :099%::)017#A+2#$%9*0:%#")#63*6#46#/411# $%# :099%::)017#B"0# 3*&%# 6"# 3*&%# 63*6# )4'%#4+:42%#("07 How did the concept for Bump come to you? A#)'4%+2#")#<4+%#$'"0;36#63%#9"+9%?6# 6"#<%7#.6#/*:#63%#?%')%96#634+;#6"#9"<%# *9'"::# <(# 6*$1%# $%9*0:%# .# 3*2# 63%# ?%')%96# 6'4)%96*# )"'# 634:7# .# 3*&%# :6'"+;# 9"++%964"+:# 4+# 63%# :?"'6:# *+2# %+6%'5 6*4+<%+6# 4+20:6'(-# &%'(# :6'"+;# )*<41(# 64%:# 4+# ?341*+63'"?(# *+2# *# ?%':"+*1# $*9,;'"0+2# 4+# 6%93+"1";(# )'"<# '0++4+;#C"'6)"14":79"<7#!"#$%#*$1%#6"# <*''(#63%:%#63'%%#?*::4"+:#")#<4+%#4:#

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Science Finance International Entrepreneurship &Biz &Technology Student Biz Economics Start Business Start Culture Trends Affairs Up Co.

Source: nobadtrips.com

By Prachi Kamble, Staff Writer

!" #$%!&" '(&%" )$*%" +($" &%," -(" ./%0" &1" +$2%0#" 3$(*4/)" 5*&6" )(" &%" 7" 6(*0'%#" (0" 2)" !0#" /2)" )/%" 4$(*0#" $*00204,"8(09)"+($4%)"7"!&"(0:1"!"1%!$" !0#" !" /!:+" 20)(" )/%" '(&6!01" !0#" .%" /!;%"3%%0".($<204"!)":24/)0204"=6%%#, Has the company grown considerably since you started? >%"%?6:(#%#, Were you pursuing other projects alongside Bump? Or were you comfortable putting all your eggs in one basket? 7+"1(*"!$%"4(204")("6*)"(0%"+(()"20"2)"2=" 0()"4(204")(".($<,"@(*"/!;%")("#2;%"20" '(&6:%)%:1".2)/"1(*$"'(0'%6)"($"2)".2::" +!::" 20)(" !" =2#%" 6$(A%')," B)/%$=" &24/)" #("2)"#2++%$%0):1"3*)"7")/20<")/%"6%$=(0" ./("A*=)"#!33:%="20"!"6$(A%')"($"#(%=" =(&%)/204"%:=%"!)")/%"=!&%")2&%"%0#=" *6"#(204"0()/204"C"%2)/%$"#("(0%")/204D" #("2)".%::"!0#"#("2)"$24/)D"($"#(09)"#("2)" !)"!::E Has the development process IRU %XPS EHHQ YHU\ GLIÀFXOW" Were there many challenges you faced during the process? F/%$%"/!;%"3%%0"!":()"(+"'/!::%04%=," F/%" 6$(3:%&" .2)/" $*00204" !" )%'/" '(&6!01"./%0"1(*"!$%"0()"!")%'/"4*1" 2="1(*"!$%"!"/*0#$%#"6%$"'%0)"$%:2!0)"(0" 6%(6:%")/!)"1(*"!$%"A*=)"&%%)204,"@(*" &%%)" 6$(4$!&&%$=" !0#" #%;%:(6%$=" +($" !0" /(*$" ($" !" .%%<" !0#" 1(*" )$*=)" )/%&".2)/"1(*$":2+%,"7+")/%1"&%=="2)"*6D" 1(*"/!;%")("=)!$)"+$(&"='$!)'/"!4!20," F/!)"/!66%0%#")("&%")/$%%")2&%=, Were those big mistakes? G!)!=)$(6/2'," 5*)" )/%" 4((#" 0%.=" 2=" )/!)"&1"+2$=)"':2%0)".!="-),"H(*2="5:*%=," 7+" 7" /!#" !01" ()/%$" ':2%0)" +($" &1" 3%)!" )%=)" 7" .(*:#" 0()" /!;%" )/2=" '(&6!01" )(#!1," F/%" 4%0):%&!0" ./(" $*0=" )/%" +(*0#!)2(0" !)" -),H(*2=" 5:*%=D" 5$*'%" I++:%'<D"'(*:#"/!;%")(:#"&%")(")!<%"!" /2<%" ./%0" &1" =1=)%&" 3:%." *6" 20" &1" +!'%" +2;%" )2&%=" 20" !" $(." !0#" 7" .(*:#" 0()" /!;%" !" 3*=20%==" )(#!1," 70=)%!#D" /%" =!2#" 7" 3%:2%;%" 20" 1(*D" 7" 3%:2%;%" 20" )/2="6$(#*')D"7"3%:2%;%"20")/2="'(&6!01D" +24*$%" 2)" (*)D" 4%)" 2)" $24/)" !0#" 4%)" 2)" '((<204,"J%"/%:6%#"&%"=)!1"&()2;!)%#" !0#" )(" 0()" +('*=" (0" )/%" '(&6!01," J%" /%:6%#" &%" &(;%" +($.!$#" !=" !" '(&6!01," 7)" .(*:#" 0()" /!;%" 3%%0" 6(==23:%" .2)/(*)" /2&," K(" &!))%$" /(."

324" 5*&6" 4%)=D" -),H(*2=" 5:*%=" .2::" !:.!1="3%"&1"0*&3%$"(0%"6$2($2)1, What are your goals when it comes to charity as part of Bump? How important is it to you and your business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s Bump only limited to sporting events? K(D"3*)"=6($)204"%;%0)="!$%"&1"+('*=" $24/)"0(.,"7".!0)")("6*$=*%")/2=")2::"7"4%)" +2;%")(")%0"&!$T*%%"%;%0)="!0#")/%0"7" .2::"4(")(")/%"()/%$"6:!'%=")/!)"7".2=/," B0%" (+" )/%" /*$#:%=" 20" )/2=" '(&6!01" 2=" #%!:204" .2)/" 4!&204" :!.=," 7)" 2=" 0()" )/%" )%'/0(:(41" )/!)" 2=" #2++2'*:)C" 2)" 2=" )/%":!.=,"@(*"/!;%")("<0(."./!)")/%" 4(;%$0&%0)" $%4*:!)2(0=" !$%D" ./(" )/%" 6%(6:%" )(" !66$(!'/" !$%" !0#" /(." )(" 4%)"6!=)")/%"$%4*:!)($1"'(0=)$2')2(0=, Do you have a marketing plan for Bump? How are you putting the word out there and who is your target audience? U1" )!$4%)" !*#2%0'%" 2=" &!#%" *6" (+" +(*0#!)2(0=" !==('2!)%#" .2)/" =6($)=" )%!&=,"V24/)"0(.D"&1"+('*="2="(0")/%" KJHD"K5I"!0#"UH5,"F/%$%"!$%")/2$)1" )%!&=" 20" %!'/C" )/!)" &%!0=" 020%)1" '(0)!')"6%(6:%,"7)"'(&%="#(.0")("&%" '!::204")/%=%"6%(6:%"!0#"4%))204")/%&" '(&+($)!3:%".2)/"*=204")/%"=1=)%&,"7)"2=" /*0#$%#"6%$"'%0)"20)%$!')2(0"3%).%%0" &%"!0#")/%&,"-20'%"&1"3*'<%)"2="=(" =&!::D" 7" .!0)" )(" &!<%" =*$%" )/!)" 7" !&" =6%!<204".2)/")/%&"6%$=(0!::1," Do you think this is a promising

time for new businesses? For Bump? W($"5*&6D"2)"2=,"L;%$1(0%"2="$%!#1"+($" 2),"F/%1"0%%#"2)E"W(*0#!)2(0="#(09)"6!1" +($" &1" =1=)%&," 7" 6!1" +($" %;%$1)/204," 7" 4%)" !" ;%$1" =&!::" 62%'%" (+" )/%" 62%," 7)" '(=)=" +(*0#!)2(0=" 0()/204" !0#" 20'$%!=%=")/%2$"6$(+2)=, Does successful entrepreneurship come down to having a winning idea and believing it enough to make it a reality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id you have to make personal VDFULÀFHV ZKHQ SXWWLQJ DOO \RXU time and hard work into Bump? >%::D"+!&2:1"2="!:.!1="+2$=)"+($"&%,"H2<%" 7" =!2#D" 7" /!;%09)" )!<%0" !" 6!1'/%'<" 20" !" 1%!$D" 7" /!;%" !" &!==2;%" &($)4!4%" (0" &1" /(*=%D" 0(" +!0'1" )/$%%C.%%<" ;!'!)2(0=,"F/%$%"!$%"'%$)!20:1"$%=):%==" #!1=" !0#" 024/)=" +($" &%" 3*)" +!&2:1" 2=" 0%;%$" =!'$2+2'%#," J!$#" .($<" #(%=09)" &%!0"1(*"4())!".($<"/!$#"+($"!"1%!$," 7)"&%!0="1(*"/!;%")(".($<"/!$#"+($"+2;%" 1%!$=," F/!)" 2=" ./%$%" =)!&20!" '(&%=" 20, What about the recession? Did LW PDNH UXQQLQJ %XPS GLIÀFXOW" Did you consider alternatives at the time? 7)"2=":2<%"6:!1204"6(<%$D"$%'%==2(0"($"0(" $%'%==2(0,"F/%$%"'(&%="!"6(20)"20")/%" 4!&%"./%$%"1(*"'(*:#"%2)/%$")/$(."20" )/%" )(.%:" ($" )/$(." 20" &($%" #(*4/" ($" 1(*".20,">/%0"1(*"!$%"20"=("#%%6"!)"!" '%$)!20"6(20)D"2)"2=";%$1"#2++2'*:)")(")/$(." 20" )/%" )(.%:," F/%" $%'%==2(0" #(%=" 0()" !++%')" 5*&6," 7)" !++%')=" &%" 20" &1" :2+%" !0#"()/%$"3*=20%==%=D"3*)"0()"5*&6, !"##$%&''$ ()*+,)"-./"-"0+1.23"

Biz Start Culture Trends Finance Science Student Entrepreneurship Business Biz Start&Co. Up Up Technology Economics By Prachi Kamble, Staff Writer

For example, Portfolios.com. When I purchased it, all our revenue was in USD and at the time of purchase the dollar was trading at 68 cents. By the time I sold the company, the dollar was at par, so I did not have a baked in 30% buffer zone; even if the company was doing 40% better than when I bought it, it was actually only doing 10% better because of the exchange rate. That is an example of economic times completely out of my control affecting my business. Entrepreneurs make mistakes when starting out. You do not even have to say “starting out”. Making mistakes is an ongoing process then? As is life. Never think you are done making mistakes. It is difficult to warn someone about mistakes. They are hard to anticipate. It is the little wake-up calls that make you a better businessman. Avoiding mistakes does not make for a strong businessperson. Is there a mistake you wish you had avoided? There are a lot of mistakes I wish I had avoided but the fact of the matter is if I had avoided them I would probably bump into another mistake soon after. I try not to look back and wish I did things differently because it does not accomplish anything. What do you like about being an entrepreneur? What I love about being an entrepreneur is that at the end of the day, you can look at what you did and say “I did that”. There is a real sense of accomplishment and pride in it. What are your future plans for Bump? Someone asked me the other day “what!s your exit strategy?” That is a difficult phrase for me to wrap my head around. It seems like everyone is thinking about when they will build the company, when they will make the dough and when they will get out of it. I am looking forward to finishing this Phase 1 at Bump, have it be implemented in many marquee stadiums in North America and later evaluate what my next phase will be in five years. What advice would you give to

67 !"#$%"&'()&'&*$+(,-&

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student entrepreneurs? I hesitate to tell anyone out of school to start their own business. I think it would be a mistake though I am sure some people are very successful at it. It is important for someone to work for someone, to see how other companies are run and managed, and learn from that. Sadly, society puts instantly successful entrepreneurs, like Mark Zuckerberg, on a pedestal. But in reality how many Zuckebergs have emerged in the past ten years? It is important to get as many life lessons under your belt before you take a big leap. If you don!t pay your dues and make a gazillion dollars overnight, you won!t know how to handle yourself. What do you do when you are not working on Bump? I am a hundred per cent about family. My daughter is my grandmother!s fortieth great-grandchild. That gives you a sense of how big my family is. I am an art collector. One of my focuses is vintage timepieces. I purchased a rare watch for my son when he was born to give to him when he turns twenty-one. It took me a long time to find it. I traced it down to a gentleman living in Ontario. He wouldn!t sell it but I convinced him eventually. I asked him to write my future-twenty-one year old son a letter explaining the gift. He ended up writing a beautiful letter that has changed my perspective on life. That!s right. Bring out that box of Kleenex. Are you into sports since Bump is so heavily related to sports? I love to watch sporting events…and collecting! I am a compulsivecollector. Thank you so much for speaking with me. What would you like to leave our readers to think about? They should trust their instincts, trust themselves and not over-think things. It came to you for a reason so go with it and back it a hundred per cent.

Science Finance International Entrepreneurship &Biz &Technology Student Economics Start Business Affairs Up Co.

seminars, conferences, and competitions. We invite you to explore your potential.

nfsa.ca nfsa.ca

Finance & Economics Trends By Magdalene Arthur, Staff Writer

Cheap initial investments and low-risk industries make franchises a realistic dream

!""#$%&'%()*+,-+./&($%(*'+01+233

A Feasible Option for Graduates

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e!re getting old. Yes, people around us have been trying to convince us that. But, although we!re edging closer to 30, we still have all the time in WKH ZRUOG WR Ă&#x20AC;JXUH WKLQJV RXW Fact: we can never get back lost time. However, let us not dwell on our ever-blossoming age or the grey that is slowly but surely taking over our scalps. Let us instead harness our energy into the decisions that will determine whether or not we!ll be able to retire in style. Have you ever considered owning a franchise? I recently started working for a magazine that focuses on Canadian and Quebecois franchises. Much to my dismay, their readership is mostly composed of middle-aged men. What happened to the younglings and women? Starting a business from the ground up can be quite daunting for most, especially recent graduates who do not necessarily have a huge capital to work with. Purchasing a franchise could be a very feasible option that comes with a team of experts ensuring the success of your venture. In your franchise selection process, it is essential to think like a student since students, similar to professionals, generally lead busy lives; and since we were or still are in that position, we can easily draw from that experience. Here are a few franchise options that may be interesting if we are to think along those lines. During those hard, busy, coffeedrenched times, you needed to: Take care of your pet (if you had one). AUSSIE PETMOBILE Aussie Petmobile is a multinational company focused on pet services. Founded in Australia in 1996, it expanded to the States in 1999, and in 2006, graced Canada with its presence. The great thing about this franchise is that it does not require a real estate investment. Professional groomers drive to the clientâ&#x20AC;&#x2122;s home and groom their furry friend in an environment it is familiar

Finance & Economics Trends !"#$%&'%()*)#+,-./,0#1-%22#3,4-),

with. The pet industry is low-risk as every one who has a pet (arguably) loves it and wants to keep its hygiene at a healthy level. In fact, this industry is the 7th largest in North-America. In Canada alone, there are over 8 million cats & dogs. Aussie Petmobile offers a repeat service, requires few employees and is at the head of its industry. The one downside would be the $100,000 initial investment, which, to its credit, does cover the costs of two solar-powered Mercedes Benz vans, RXWĂ&#x20AC;WWHG ZLWK DLU FRQGLWLRQLQJ KHDW electricity, water and environmentallyfriendly products, and exclusive territory rights. However, if you get an awesome job after graduation, it can be quite an interesting opportunity. There are also pay-as-you-go options.

Magazine has listed Coffee news as #1 in Advertising Services. It has been in business since 1988 and offers training and support to all its franchisees. Moral of the story: There are various franchise options out there, and you FDQ GHĂ&#x20AC;QLWHO\ Ă&#x20AC;QG VRPHWKLQJ WKDW Ă&#x20AC;WV your interest and budget. You will need to consider the risk factor, along with the average investment required to launch your business. Remember, think like a student!

There are various franchise options out there, and you can GHĂ&#x20AC;QLWHO\ Ă&#x20AC;QG VRPHWKLQJ WKDW Ă&#x20AC;WV \RXU LQWHUHVW DQG EXGJHW Clean your apartment because your landlord promised to throw you out if you didnâ&#x20AC;&#x2122;t maintain the cleanliness of the premises. MERRY MAIDS Merry Maids is a housecleaning company started in 1979 in Nebraska. The minimum cash requirement is $25,000. Everyone needs a home, but some people just donâ&#x20AC;&#x2122;t have the time or donâ&#x20AC;&#x2122;t make the time to keep things tidy. Thatâ&#x20AC;&#x2122;s where Merry Maids comes in. Drink more coffee, but coffee shops are quite pricey so Coffee News will have to do. COFFEE NEWS Coffee News is a world-wide publication that grants you the opportunity to work from home. It is published weekly and delivered to coffee shops, restaurants and motels. Your job as a franchisee would be to sell ad space to small businesses in your region. Start-up costs are only a few thousand dollars. The actual content, described as light and entertaining, is fully taken care of by the franchisor. Entrepreneur Fall 2011 ArbitrageMagazine.ca

STUDENT RESOURCES Your career: it’s never too early to start shaping it. University is a fantastic time to explore your options and begin paving your path for the future. But alas, where do you get started? ARB does its part through its Student Resources section to guide you towards rewards. In this issue, we take a leap forward and focus on your post-undergraduate years. We debunk auto insurance myths, help at the dinner table with Herman Alves, a Montreal businessman who has made and lost millions and isn’t afraid to say so. Join us; you won’t be disappointed!

Dinner with Herman Alves Interview with Herman Alves.

Auto-Insurance Debunked: Toppling the Mighty Dictator Understanding how Insurance Rates are calculated: what factors in and what does not.

B-Schools: Which One's For You? Choosing a Business School for Graduate Studies

Student Resource "#$%&'()$*'+,-./$01,22$3'41)'$

DINNER WITH HERMAN

ALVES

t’s 6:00 o’clock on a Wednesday afternoon. I speak to Herman (S]LZ VU [OL WOVUL /L ÄUHSS` agrees to meet for a short interview at 7:00 p.m. He tells me to see him at his restaurant. I need a shave, but I don’t have the time. I almost walked out the door wearing sandals and a beater, but I ÄN\YLK 0 ^V\SK ^LHY ZVTL[OPUN TVYL appropriate. Alves was born in Fatima, Portugal. It might have been 1957, but the living conditions in Fatima were Stone Age – no electricity or running water, not even toilets. At the age of 5, Herman’s father left him and his mother in search of a better life in Brazil. Alves and his mother were left to work the land in order to live. After experiencing social alienation in Germany, his father returned. Then the Alves family moved to Montreal, where he lives now. In the subway, it’s about 30 degrees Celsius. I envy Montrealers and [OLPY [YLUK` Z\TTLY V\[Ä[Z 0 Z[YPKL hurriedly on Notre-Dame Street. I look pretentious. People smoking outside a dive bar shoot me sharp-eyed looks and rattle in French.

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/%4&5(6#77789&(+:3,';0%,(;85%*

Student Resource !"#$%&'(#)&*+,-.#/0+11#2&30(&#

I check my watch: it’s 6:56 p.m. )LOPUK H ^H]PUN 7VY[\N\LZL ÅHN the wall reads “Bitoque.” I pull on a heavy door and enter the restaurant. I sit down at the bar. A pretty waitress asks me if I want a drink, I accept. I quickly change my mind and ask for iced water; it could be early for booze. At 7:00 p.m. Herman is facing me. He is agitated because the phone rang and no one at the restaurant was able to answer in time. Herman asks me to sit at a table. He wears a grey suit, no tie. He stammers a bit, but speaks ^P[O JVUÄKLUJL /PZ OHUK NLZ[\YLZ are exemplary of European culture. He asks with a big smile, “Would you like something to eat?” “The back of your recently published book, Breaking Stones, says you have made millions and lost millions, tell me about that,” I say. Herman pauses for a second then says, “On paper, I was a millionaire at the age of 26, because I started buying buildings at the age 18. But I lost everything, in 1984, because of my divorce. I had to start from scratch. I bought a restaurant in a hot area of Montreal, but the concept just didn’t click; I made bad deals, bought too many buildings too fast, had problems with tenants. I was at the brink of bankruptcy.” Herman has lived many lives in only 50 years. He has done a hilarious variety of jobs: worm picker, club-owner, calèche driver, marketing consultant, and even a political activist. He has endured incredibly hard times. Creativity and perseverance are Herman’s keys to phenomenal episodes in his life. We are interrupted by a tall, middleage, tanned woman with perfect make-up. She hands Herman a fat envelope, then walks away. Herman takes the envelope and says, “That’s my ex-wife, she does the accounting for my restaurant.” He chuckles. – “So how did you recover after the divorce?” – “Well, I say that if you're going

to make mistakes you're better off making them when you're young, so you have time to recover.” /LYTHU ÅPUJOLZ [V H WHWLY J\[ caused by an envelope, the one his ex-wife just handed him. - “I divorced at the age of 27 after 5 years of marriage, so when I lost everything, my only salvation was to go back to school and learn enough so I could land a decent job, then start a new business. Education was my way to get out of poverty. I have always admired people, who began with nothing and made millions. For instance, the Bronfman family, who started bootlegging liquor, later formed the largest distiller of alcoholic beverages world-wide.” In 1993, former mayor, Jean Doré, introduced a surtax on the existing Montreal business tax. “My property tax bills had tripled from the previous year,” said Herman. The city of Montreal was collecting taxes on business properties, whether there was a tenant or not. ¶ ¸0 [YPLK WOVUPUN [OL TH`VY»Z VMÄJL but nobody really wanted to listen.” – “So what drove your actions to battle the Montreal surtax?” – “When you are the little guy, and you feel like you are being trumped by the big guy [governments or institutions], you have to stand up and cry foul. I KLKPJH[LK H `LHY VM T` SPML [V ÄNO[ [OPZ tax. Not only did we win, the surtax was abolished and declared illegal in the courts. But when elections came around, the electorates kicked out the mayor – they voted him out.” A phone rings. Herman answers his cell phone in English. He switches to Portuguese and says, “We better switch to Portuguese.” Because of my Spanish background, I gathered bits and pieces from the conversation. Suspicious.

entertainment and tourism. He is now a father of three, a marketing consultant and a motivational speaker. Alves is the former president and active member of Share the Warmth, a charity that gives food and scholarships to underprivileged children in Montreal. He organizes the Table of Hope gala, which aims to raise over $1 million to ILULÄ[ :OHYL [OL >HYT[O (JJVYKPUN to The Gazette, the Table of Hope gala raised $140,000 for Share the Warmth in 2011. – “There is an old saying that says: if you love what you do, you never work in your life.” We are interrupted again by the waitress that brings us expresso coffee. I stir the sugar in my coffee, though I make sure to hold eye-contact. Herman takes the thin, long sugar package and says, “Imagine this is a rope. Grab it.” As he pulls on the sugar package, “If I pull you with a rope, it’s easy to follow.” I let go. – “Now hold your palm out.” Herman pushes the sugar package against my hand, it bends. “If I try to push you with a rope, the rope has no power, because it will bend and fall. If you want to be pulled, you will go somewhere. But if you want to be pushed, you will go nowhere. Be certain of what you want to do.” I remain silent. – “What is your plan for the future?” I ask. – “To have fun. I have my restaurant. I let my sons run it. I want to teach them the art of business. You want to grab a beer?” I accept. It might be late enough for booze.

Herman Alves has more than 25 years of experience in customer service, real estate, telecommunications, Fall 2011 ArbitrageMagazine.ca

Biz StartCo. Finance Culture Trends Science International Student &Up Economics Technology Affairs !"#$%&"'#()*++,&-.#(/*00#12,/%2

Auto Insurance

4++56/2*/,'&#7"#892,6/,&*#:;#<%%

Toppling the Mighty Dictator

The Myths and Facts about Auto Insurance

he whims of the Insurance industry have remained largely obscure to most of its subjects. At the very least, drivers understand that accidents are bad and younger drivers pay higher rates. In truth, they are correct, but insurance rates account for more than age and claims. It is a numbers game. Imagine an unsettling concoction of every claim associated with a particular vehicle model, or particular age group or particular gender and you will get a better picture of how rates are calculated. Insurance is quite simply a pool of risks; and, unfortunately, we’re all in the deep end. Every driver feels the impact of other peoples’ claims. Insurance companies spread the ‘wealth,’ if you may, among all their clients. It is important that no one bears the full

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Fall 2011

impact and costs of an accident. But if it still seems unclear, think Communism — the claims of the few shared among the many. But all is not lost; in this case, I will play the rebellious protagonist who will lead the people to ousting the tyrant. We cannot overthrow him, but we can educate ourselves with vital information to outwit him. There are a few things you need to know when dealing with insurance companies. I have compiled a list that will dispel timely myths, and otherwise help young drivers save a buck or two. BUY RED! THEY!LL ONLY BE GREEN WITH ENVY. Contrary to popular belief, colour is not a determining factor when Insurance companies calculate their rates. As a matter of fact, most insurers never

know most of their clients’ vehicle colours. If you don’t believe me, ask your broker. Vehicle colour is simply not relevant—a driver in a blue car travelling 140 kilometres per hour (km/h) will most certainly attract more attention than a red one travelling half the speed… unless that red car is a Ferrari, then it’s a whole other story. WHAT!S MY AB? NO, NOT BLOOD TYPE. () Z[HUKZ MVY (JJPKLU[ )LULÄ[Z ;OH[»Z important to remember because that’s exactly the reason why auto rates have skyrocketed as of late. On September 1, 2010, the Ontario Government and the private insurers introduced a new mandate meant to control the payouts on frivolous claims. 0RVW DFFLGHQW EHQHÀWV FRYHUDJHV have been cut in half, but that!s not even

Science Finance International & &Biz Student Technology Economics Start Culture Trends Affairs Co. Up !"#$%&"'#()*++,&-.#(/*00#12,/%2

the kicker. The cost for your accident benefits have also substantially increased, meaning, the cost of your auto insurance has increased as well. There are ways, however, for young drivers to control their costs. Simply ask, â&#x20AC;&#x153;What!s my AB?â&#x20AC;? Vehicle rates are tracked by three claim codes: CL: Collision (1-99), CP: Comprehensive $% $FFLGHQW %HQHĂ&#x20AC;WV Most drivers should be concerned with WKHLU YHKLFOHŇ&#x2039;V $% LV JRRG LV EDG Vehicles with a higher AB rating are likely to see higher insurance rates. If you!re getting quotes, don!t hesitate to ask your broker for your vehicle!s AB rating and the rating for other vehicles that you are interested in. TO CLAIM OR NOT TO CLAIM...Every year, drivers make claims for accidents that they think may be too expensive to cover themselves. Other drivers claim because they think it is wrong to lie to their insurance companiesâ&#x20AC;Ś If you are one of these people, don!t dial out just yet. Insurance companies actually encourage their clients to think long WHUP EHIRUH Ă&#x20AC;OLQJ D FODLP 0DQ\ GULYHUV Ă&#x20AC;OH FODLPV IRU PLQRU VFUDWFKHV WKDW ZRXOG have better been resolved between operators; others claim single vehicle accidents with minor property damage. These types of claims are best resolved without company involvement because they create unnecessary claims and if at-fault, which most single vehicle accidents are, you lose more than your deductible. At-fault accidents can see up to 7 years of increased premiums. BELIEVE ME, AN ANNOYING MOOSE IS BETTER THAN A DEAD ONE. If you just can!t avoid that moon-walking moose dancing in the street, just be happy he!s not dead. Moose and deer create hazards every year for drivers and insurance claims are fraught with animal hits. This situation seems clear cut, but it should really be a cause for concern for drivers. There are two possible claim results from hitting an animal on the streets. $ PRYLQJ DQLPDO LV FRQVLGHUHG D Ă \LQJ object in terms of insurance and falls under comprehensive coverage â&#x20AC;&#x201D; this is always not-at-fault. On the other side,

a stationary object like a standing moose or a dead one is always considered collisionâ&#x20AC;&#x201D;of course this is always atfault. So if you have a comprehensive claim at hand, please defer to Bowie for more dancing in the street. ABRACADABRA! SORRY, THEREâ&#x20AC;&#x2122;S NO MAGIC DISCOUNT BUTTON.If you have a cellular phone, you have likely phoned your provider threatening to leave to a competitor who offered you lower rates at one point or another. Then with concerns for customer retention, the company probably found a special offer or discounts to offer you; Abracadabra! I call it the magic discount button. Unfortunately, insurance does not work the same way. Rates are set and approved yearly by the Financial Services Commission of Ontario (FSCO). Once rates are set, all bets are in and companies must stick to them. If your insurance provider offers you a special rate, it is either because it is a temporary solution until your policy renewal, they have held out on you, or they!ve somehow altered your coverage. Be proactive and ask questions. WHEN YOU HIT THE ROAD, DONâ&#x20AC;&#x2122;T LEAVE IT ALL BEHIND. Everyone needs a fresh start once in a while, just moving away and starting fresh. The open road can be great, leaving all your troubles behind. I am all for it, but insurance asks that you to do otherwise. Each province has different rules IRU LQVXUDQFH DQG UHTXLUHV D VSHFLĂ&#x20AC;F provincial license to pull your insurance reports. To avoid any hassle, be sure to ask for a Letter of Experience (LOE) and a driver!s abstract before you leave your province. Without these documents, some companies may not be able to validate your insurance experience. GOT DEMERITS... AND? Many factors affect your insurance premiums. Accidents, driving convictions, suspensions and gaps of insurance all play a part in the way rates are calculated. Of course, driving records are important to insurance companies, but in terms of driver rating, demerits have no impact. Despite

governmental focus on demerit points, there is actually no direct impact on your insurance premiums. Brokers actually do not even look at demerits on a motor vehicle report. As I have previously explained, insurance is a numbers game. In terms of factors to consider, less is more. The industry is rife with David and Goliath comparisons, but with these tips you may just be able to appease the giant. It is near impossible to topple this dictator, but with educated decisions and collaborative efforts, we may be able to take back some of our democracy. For more information, visit the many resources at your disposal, including: Insurance Bureau of Canada (IBC)â&#x20AC;&#x201D; www.ibc.ca or Financial Services Commission of Ontario (FSCO)â&#x20AC;&#x201D;www. fsco.gov.on.ca. And if your broker says, â&#x20AC;&#x153;this is madness,â&#x20AC;? you say, â&#x20AC;&#x153;madness, no, this is Sparta!â&#x20AC;? Kenyo Smalling is currently an insurance broker with GP Car and Home Inc. All the above information KDV EHHQ FRQĂ&#x20AC;UPHG ZLWK RWKHU EURNHUV and insurance managers. Kenyo is also a creative and technical writer specializing in media, current events and marketing. You can check out more material, please go to: http:// rhetoricallyspeaking-kenyosmalling. blogspot.com

Fall 2011 ArbitrageMagazine.ca

Student Co. By Samadrita Guin,Guin, Staff Writer By: Samadrita Staff

B-SCHOOLS: WHICH ONE'S FOR YOU?

5 steps to help you choose a Grad School

77 ArbitrageMagazine.ca

Fall 2011

Student Co. By Samadrita Guin, Staff By: Samadrita Guin,Writer Staff

Choosing the right Business School for you.

o I know what you are thinking. “I still have 50 billion years before I have to even start thinking about attending grad school.” Well, it’s not as far away as you would like it [V IL 0UKLLK `V\ TPNO[ IL PU `V\Y ÄYZ[ year still living up those crazy parties or in your fourth year, ready to walk into those internships and jobs. But, soon enough, those of you who want an MBA will have to start looking into taking the GMATs and visiting campuses, trying to pick where to spend the two most important years of your life. Making the decision to attend a B-school is only half the battle. The other half is choosing the one that not only caters to your demands, but also is the place that provides you with the right opportunities to grow. Every B-school is different in its strengths and weaknesses. Here are the [VW Ä]L criterion on which basing your decision will make life a lot easier: 1. That piece of paper that you receive after all that hard work. Let’s face it. At the end of the day, it’s all about the degree: that one piece of paper that says “Yes, I spent $70000 a year in order to be an asset [V [OL I\ZPULZZ ^VYSK ¹ :V ÄUK V\[ what kind of academic programs are available at your list of B-schools. Decide what you want: do you want a full-time two year MBA, an Executive MBA, or a part-time online MBA? This website might be of some help to narrow down your search: http:// w w w. m b a . c o m / s c h o o l s - a n d programs/t ypes- of-b -schoolprograms.aspx. Check to see if the schools offer concentrations in ZWLJPÄJ HYLHZ [OH[ `V\ ^V\SK SPRL [V specialize in and decide on the top few that offer the perfect program that you are looking for.

2. Cha-ching! The annual cost of an MBA can range anywhere from $20,000 to $100,000 a year. Scary, right? Yes, this is why it is crucial that you start saving up right now if you want to attend one of those hot-shot top-of-the-list B-schools. So, look into the “Finances” section on every B-school website, in order to determine what their annual costs would be, and whether you can HMMVYK [OLT *OLJR [V ZLL PM ÄUHUJPHS aid options are available. Try using this ^LIZP[L [V ZLHYJO HU` H]HPSHISL ÄUHUJPHS aid tools: http://www.topmba.com/ TIH HKTPZZPVUZ TIH ÄUHUJL HWWS` mba-scholarships. The more affordable university programs should successfully narrow down your search.

4. Placement statistics and career development We all want that job. That job that you have been working years and years MVY ZV `V\ JHU M\SÄSS HSS VM [OVZL [OPUNZ on your “To-do-list-before-I-die.” So check your B-school’s placement statistics, and contact their career THUHNLTLU[ VMÄJL 9LZLHYJO ^OH[ kinds of initiatives they take in order to ensure your recruitment post graduation. Also, make sure to check out recruiters who recruit on campus. Set your career goals from before so that you can choose the B-schools where recruiters of your choice hire.

3. The reputation and exclusiveness Who doesn’t want to land a job with H Z[HY[PUN ZHSHY` VM ZP_ ÄN\YLZ YPNO[ V\[ of grad school? But, to get those lucrative jobs out there, you have to attend one of the top few schools in the country. But with attending an extremely reputable school comes extreme selectivity. Some schools are highly exclusive and selective about their applicants. That’s why it’s important to pay attention to your grades right now, so you can get the GPA or GMAT score you need to get into the B-school of your choice.

Fall 2011 ArbitrageMagazine.ca

Student Co. By Samadrita Guin,Guin, Staff Writer By: Samadrita Staff

5. Student Life Do you want to live on residence? What kind of off-campus housing options are available? Are there enough extra-curricular activities for grad students to get involved in? Apart from the academics, the social and extracurricular aspects of your school will have a huge impact on your well-being HUK NYV^[O :V ÄUK V\[ HZWLJ[Z HIV\[ student life, and pick the ones that cater to you the most

Good luck with your hunt! >L H[ [OL (9) OVWL `V\ ÄUK the B-school that works the best for you!

Source: nipic.com

So there you have it folks! The top Ä]L JYP[LYPVU [OH[ ZOV\SK MVY [OL TVZ[ part, help you narrow your search down to about four or less B-schools. It’s important to start looking right now, instead of waiting until after you graduate. Because, at that point, you might just realize, “Oh, my marks aren’t high enough for [Insert Name here] Business School!”.

79 ArbitrageMagazine.ca

Fall 2011

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