Heros - Arbitrage Magazine - Nov 2012 by Arbitrage Magazine

NOVEMBER 2012

HEROES PROJECT ONE12: THE STORY OF ONE GIRL, TEN JOBS AND SIX CITIES FROM CORPORATION TO COOPERATION PRODUCING LOCALLY. REEDUCATING CONSUMERS

FIGHTING AGAINST SOUTH AFRICAN LION HUNTING

HOW FAR CAN CANADIANS DREAM?

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 theinjob We achieve this members themarket. 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 by bringing finance professionals, better equip oneself for 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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JOB?

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careers. education. ideas. all of it.

EDITOR’S NOTE

Akemi Liyanage Editor-in-Chief Arbitrage Magazine

Dear Arbitrage Readers, It’s no secret - change is sweeping the world. Whether you want to take to the streets with Occupy or focus on your personal development, Arbitrage 11 reflects the evolution of both the individual and population. If activism is your cup of tea, read an indepth investigation of the state of Canadian cooperatives in the feature, “Cooperatives on the Rise”. There is also inspiration available in, “Project One12: One Girl, Ten Jobs, Six Cities” on Meaghan Smulders, who made headlines when she went

on a journey to find the perfect job.

faced by people around the globe.

Onto more international matters, we examine whether China’s economy has stopped growing. Can such a big economy really slow down? And why is lion hunting in South Africa such a big problem? Although these issues may feel a world away, they have a ripple effect that influences people in North America and vice versa. In short, we want to keep you fully informed about the most intriguing challenges

Besides a strong flavor of business and activism, our magazine contains hints of Twitter, Pink Floyd and New York. Will you enjoy the main taste or the subtle undertones? There’s only one way to tell. As the Editor-in-Chief of this issue, I welcome you to the eleventh issue of the Arbitrage Magazine.

Founder & Publisher David Alexander ARBITRAGE SUPPORT STAFF Board of Directors Samita Vasudeva, Garin Kilpatrick, Michael Manirakiza, Rabeea Wajeeha

Communications Director Monika Mistry

Assistant Communications Director Connie Ng

Communications Reps Maja Ulakovic, Delbert Williams

Social Media Managers

Marriska Fernandes, Ryan Hamilton

Advertising Designer Stephanie d’Entremont

MAGAZINE PRODUCTION TEAM Editor-in-Chef

Akemi Liyanage, Luis Fernando Arce

Managing Editor Exequiel Octavio Bertaina

Chef Online Editor Alexandria Chun

Vice Managing Editors Exequiel Octavio Bertaina

Sectior Editors

Anna Marszalek, Oxana Tsirelman, Michelle Hampson

Online Editors

Katherine Nader, Liana Crocco, Kelly Townsend, Maya Sokolovski,

Staff Writers Adrienne Beason, Khristopher Reardon, Siavosh Moshiri, Amarpreet Atwal, Monica Cheng, Tejas Shah, Maham Abedi, Catlin McKay, Lauren Murphy, Nazifa Islam, Laura Garzon Valdes, Amy Soden, Tilly Wark, Caitlin MacLachlan, Megan Gartrell, Matthew King

Tech Writer Rick Emerith

Contributing Writers

Ellie Chan, Adrienne Beason, Megan Harris, Leigh McLaughlin, Nazifa Islam

Art Directors

Lily Li, Sophie Qi

Assistant Art Directors

Brett Parton, Marie Siojo, Andrew West

Staff Designers

Julie Barkun, Adrien Mendez, Angela Song, Joseph Kong, Richard Bramer, Tim Walker, Eman Faiz, Laura Prosser, Ryan James Terry, Jae Lee, Christina Lee, Azin Dilamghani, Ana-Maria Enescu, Atef Hossam, Yiting Zhang, Riley Schoonover, Summer Zhang, Elizabeth Apa, Sarah Sia, Ron Kelner, Katherine Chu, Weimar Lee, Cecile Carreon, Chloe Leung, Juliana Suave, Melissa Thanakone, Matthew Hunter, Mark Quimoyog, Tope Lona, CG Chen, Tinuke Olagundoye, Wu Yuanxiang, Shuyi Feng

Photography Director Jovan Milosevic

Staff Photographers Nadia Jolobova, Abad Mahava, Dan Campo, Jérôme Simon, Mehreen Hussain, Jelena Subotic, Shelbi Noble, Tal Gertin, Brian Lockyer, Azra Kara, Rachel Fender, Isabelle Poirier, Shannon Evans, Megan Kamocki, James Lee, Sharon Sabharwal, Pengxi Liu, Lee McVittie

FEATURES Project One12: The Story of One Girl, Ten Jobs and Six Cities

43 47

From Corporation to Cooperation

CONTENTS 11 21 FINANCE & ECONOMICS

07 09 10 11

07 SCIENCE & TECHNOLOGY

Going Above and Beyond: Talking Real Estate with My Father

Nintendo Unveils WiiU

Can Aboriginals Save Our Economy?

Sleepy Brains Crave Junky Food

It’s Time Consumers Realize the Importance of Producing Locally Forex 101

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BIZ START UP

27 29

Four Pillars of Successful Entrepreneurship

Lion Hunting in South Africa

Are Bookstores a Thing of the Past?

Say This NOT That to Your Professor: A Critical Review

Pink Floyd: From Band to MultiMillion Dollar Brand

How to Use Twitter to Find a Job

The 80:20 Rule

Education vs Experience

How Far Can Canadians Imagine?

STUDENT RESOURCES

INTERNATIONL AFFAIRS

Banning Democracy

China’s Housing Slowdown May Damage Economy

FINANCE & ECONOMICS

Going Above and Beyond

Talking Real Esate With My Father

written by : maya sokolovski, staff writer

photography : azin dilmaghani, tal gertin design: azin dilmaghani

Real estate agents can come from all walks of life. But what ties them together is a keen interest in real estate and a passion for sales. My father, Boris Sokolovski, is one of these people; before getting into real estate, he worked as a property manager and an investor. Even before that, he was a software developer and computer programmer. Today, he’s a licensed real estate agent with Sutton GroupAdmiral Realty who greatly enjoys his work. Speaking to him over coffee, I wondered what it was like to leap from property management to real estate sales. Boris said, “Well, I wouldn’t say that was a complete leap, just an additional direction

formy activity. I learned that if I became an agent, I would have access to greater resources and a better understanding of the industry, and in this way gain a new specialty for me.” On his clients, Boris says that they all have different needs. There are first-time buyers who are unsure of what they are looking for. There are separated or divorced couples, who need to sell their property and somehow divide their assets. And then there are investors, who may own—or entertain the idea of acquiring—real estate properties. It is this last group that Boris understands better than others, simply because he has relevant experience.

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Being successful in business—whether in real estate or otherwise—requires organization and planning, good negotiation skills and a strong work ethic.

FINANCE & ECONOMICS

“In real estate, clients sometimes cannot decide what they really want. Sometimes their wants do not match their needs. I make it a point, in certain cases, to advise clients not to buy any property right now if I see that their circumstances are not the best for such a move. My job is to determine their real needs, and to find the best solution for them. There are a lot of parameters to this work, and sometimes they are ambiguous. Adapting to the human factor is a major challenge, but I believe it’s learnable.” The minimum a real estate agent must do is show properties and close purchases and sales—putting in due diligence to earn commissions. Boris’s approach, however, goes far beyond that. His objective is to build long-lasting and mutually beneficial working relationships with clients and guide them through the research

process, transactions, mortgages, interest rates, market trends, investment and more going forward.

financial and other challenges and to ensure that they are happy enough with my work to be repeat clients.”

“A lot of times during the last decade,” he says, “many people called me and asked a lot of questions about investment, about tenant issues, about districts in the City of Toronto. After they had already made all their decisions and discussed everything with their agents, they went on to call me and ask for my opinion. On several occasions, I had to ask: ‘Listen, why don’t you call your real estate agent and ask him/her the questions you’re asking me?’ Their answer: ‘Oh, my agent is completely busy or I don’t like him/her anymore’, stuff like that. My goal, by contrast, is not just to earn my wages, but to be sure that I find the right solution for my customer, to warn them about potential

According to Boris Sokolovski, being successful in business—whether in real estate or otherwise—requires organization and planning, good negotiation skills and a strong work ethic. People also need to take care of themselves; if they are not in good health, they might find it difficult to handle a heavy workload. And once you achieve success, don’t forget to give back.

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FINANCE & ECONOMICS

Can Aboriginals Save Our Economy?

The Harper government taps into the economic potential of the Aboriginal population.

Written By: Caitlin Mckay

Hundreds of years ago, the Aboriginal people saved European settlers from smallpox. Now, they might end up saving the Canada from economic disaster as well. As part of an economic recovery plan, the Harper government has pledged $100 million to the Aboriginal Skills and Employment Partnership program (ASEP). In providing the funds to train Canada’s fastest growing population of youth, the government hopes to decrease poverty and unemployment in First Nations communities and address the shortage in skilled labor. However, critics feel that a program that focuses solely on employment will assimilate Aboriginal communities instead of improving them. “You can’t just take an economic development program, stick a feather in it and call it native,” explains Dr. Jeff Corntassel, an Associate Professor of Indigenous Governance at the University of Victoria. “You need to actually have some substance behind it that’s going to relate to community’s values and needs.” Cornassel, who is also from the Cherokee Nation, is frustrated that the government’s plan ignores Indigenous culture. “I think we have to look at poverty from an indigenous perspective. It’s not just about economics. You’re

really impoverished if you don’t have your culture,” he remarks. “We measure wealth by the extent of your generosity and … of your culture so we (Canadians) need to think more broadly about the questions of poverty.”

the Aboriginal people are given support to develop skills demanded by the labor market, especially skilled trades, mining and infrastructure related jobs. But this skills-focused training limits opportunities to enter other professions.

Moreover Dr. Cynthia Wesley-Equimaux, Associate Professor at the University of Toronto’s Indigenous Studies program also has little faith in ASEP because there has been little consultation with the community.

“Training people to do those sorts of manual labour is not giving them the full spectrum of choice,” explains Carolyn Bennett, Liberal Critic for Aboriginal Affairs and Northern Development. “Aboriginals should have the same choices but the problem we are seeing now is in education. We only spend $7000 dollars per Aboriginal child per year but non-Aboriginals get $12000. So, Aboriginals don’t get the quality of education and they are not able to have real choices if they don’t have a good basic education.” Bennett goes on to urge the government to consider the future generations of Aboriginals rather than the short term needs of the economy.

You can’t just create a program, stick a feather in it and call it Native “They [the government] sit up in their towers and they say ‘this is what we are going to do’,” Wesley, who is also a member of Chippewa of Georgina Island First Nation in Lake Simcoe, says. “It’s never worked. It just doesn’t help anyone. It gives people jobs but it does really nothing on the community level. It’s never enough and it’s never with the community.” ASEP is designed to ensure

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“At the moment, the education gap between $7000 and $12000 needs to be closed. That is a seriously important investment for the federal government so they [the Aboriginal people] can be successful and contribute. It’s a matter of investment rather than just a cost. It’s not about saving money.” ASEP and other programs like it might be a solution to Canada’s economic woes.

But unless they are properly implemented, ASEP could cost the government in the long run. The Minister for Aboriginal Affairs and Northern Development was contacted for an interview but was unavailable for comment.

FINANCE & ECONOMICS

Local Production Leads to Economic Growth New Growth Expected in US Manufacturing Industry .

Written By: Exequiel Bertaina, Vice-Managing Editor

American manufacturing is the sustainable answer to local demand. According to a survey released by the Boston Consulting Group, 1/3 of US manufacturing companies are planning to bring production back to the US. Says Paul Crawley, President of NetReturn which covers all aspects of the supply chain in the US, “we felt that it would be best to do [it] here in the U.S. and not only from [just a manufacturing] perspective but from an economic one too. It’s been wonderful.” Manufacturing Overseas is Not What it Seems Start-up companies are led to believe

Photography: Azra Kara

that it’s best to offshore production, but this is misleading advice. Local production allows firms to achieve a higher turnaround time at a lower transportation cost. There is also reduced risk because the firms are able to order lower quantities of each good. Let’s not forget that the American automobile industry needed to be bailed out because companies like GM and Ford relied too heavily on off-shore manufacturing. Adjusting Consumer Perception Consumers should not forget that production involves everything from the supplier of raw materials to the

Design: Weimar Lee

truck driver that transports products to the store. Off-shoring production completely cuts away all of these jobs and thus cripples the economy. Harnessing the Web Revolution What’s great about the internet is that a product which costs $2 to produce can be sold at $3 on the internet instead of $4 dollars in retail. Not only is the product of premium quality and produced locally, but it can better compete with foreign products with lower prices. Will the trend of producing locally continue to thrive in America? Only time will tell.

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FINANCE & ECONOMICS

FOREX 101 An Introduction to Trading in the World’s Largest Market Trading in the Forex market offers a number of clear advantages and is becoming increasingly open to the average trader

What is the largest financial market in the world? The response most people would offer to this question is the stock market. But the correct answer is that the world’s largest financial market is the foreign exchange market. To put into perspective just how gigantic the forex market is, think about this: if you were to add up the daily volume of every major stock exchange in the world—the New York Stock Exchange, the London Stock Exchange, the Frankfurt Stock Exchange, and the Tokyo Stock Exchange—the total still falls far short of the average daily volume that is transacted in the fx market.

WHAT EXACTLY IS THE FX MARKET? Most people have traded in the fx market even if they were largely unaware of it. Every time a person exchanges one currency for another, he or she is trading in the fx market. The foreign exchange market is where currencies, such as the American dollar, euro, Japanese yen and Swiss fran are traded and exchanged against one another every day.

investors and transnational corporations. n fact until the early 2000s, these organizations were the only players involved in the fx market due to very large minimum contract sizes, often fixed at $1 million or more. This high minimum contract size made it impossible for the average investor to gain access to the fx market.

But tourists exchanging one currency for another as they travel between countries accounts for only a very small percentage of daily turnover in the fx market. The bulk of daily volume in the fx market is executed by investment banks, wealthy private

Most people have traded in the fx market even if they were largely unaware of it.

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FINANCE & ECONOMICS CULTURE

But the explosion of the internet and recent technological advancements have allowed small retail fx brokers to open shop and provide minimum contract sizes of as little as $1,000. As a result of increased access to the forex for smaller investors, the forex has substantially grown over the last 10 years. HIGH LEVERAGE In the stock market, the most investors can typically leverage is 2:1. In futures, traders can gain a bit more leverage but nothing near the 50:1 that is currently available to U.S. traders and the 100:1 leverage that is available to most European and Australian brokers.

LOW TRANSACTION COSTS In stock trading, commissions can eat up all the profits one makes in a year. In fx, the total cost of execution tends to be much lower than that of the stock and futures markets. This is a major advantage for serious traders and investors. 24 HOUR MARKET The fx market is not a centralized exchange, such as stock and futures markets. Instead, the market is simply a loosely connected network of interbank dealers spread around every major financial center in the world, including New York, Tokyo, and London. Therefore, there is no clean open and close each day. Instead, liquidity and volatility ebb

and flow between financial centers around the world. This is very advantageous because traders do not have to worry about opening and closing gaps adding significant risk to overnight positions. With an ever increasing demand to exchange currencies, the forex is still poised to grow. And perhaps you will grow your profits on the worldâ&#x20AC;&#x2122;s biggest market.

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Written by Luis Fernando Arce, Chief Interviewer

Some have the stomach for it. Some don’t. But hunting has unquestionably become a very popular sport around the world for a very special breed of person-the adventurous high spender. “Mostly it’s middle-aged men,” says a representative of the T. Jeffrey Safari Company in Tucson, Arizona. “We used to have a lot of entrepreneurs...people that were builders, in real estate and other entrepreneurial things...but that’s really slowed down a lot since the 2008 crisis. Now we have a lot of folks that are retired. They have special pensions, maybe investments [to cash in].” But the fat, he said, comes from the “real high-end, very well-off lifestyles…” Hunting has been tied to our existence as a species since the beginning of time. But unlike the age of the Neanderthals, hunting today is not about the survival of the fittest but the pleasure of the noble. And lately, it is the hunting of lions in South Africa that has spurred international outrage.

Illustration by: Marie Dominique Siojo

CANNED HUNTING FARMS OF SOUTH AFRICA In South Africa, more and more lions are being grown in Canned Hunting Farms – enclosed areas where cubs are taken from their mother shortly after birth and are grown by humans to be placed on display for gawking tourists. A June 2010 video by Four Paws reveals that raising these lions in such unnatural living conditions lead to, “ill health and behavioural problems,” in the lions.

Design: Marie Dominique Siojo

the rise; between 2002 and 2008, the number of lions held in Canned Hunting Farms increased by 250%. And according to Four Paws, a hunting license “isn’t usually necessary” resulting in agonizing pain for lions that need to be shot many times by inexperienced hunters, to die.

The mistreatment of the lions doesn’t stop there though. Once they are between four to seven years old, these lions are transferred to gaming grounds to be purchased and shot at an average rate of 1000 per year. A male lion with a majestic mane can run up to 50,000 euros while females and cubs cost 5,000 euros.

The representative from T. Jeffrey Safari Company said that “most of [his clients] are people that have hunted before in North America,” therefore, they are not required to have a license to book the trip.Then he assured me that applicants need not worry about it, for T. Jeffrey’s handles “the whole process for them,” which consists of “basically giving your personal information and paying a fee,” at the end of which you’ll receive the license with no training necessary.

There is an estimated 160 of these farms in South Africa with the majority operating in the provinces of Free State, North West and Limpopo. However, the number of these horrific farms is on

“For most of my hunts,” he said, “the fee for the license is included in the price of the hunt – usually very cheap 50 or 100 bucks.” On average, a trip can cost between 7,000 and 10,000 dollars

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at T. Jeffrey’s. However, he assured me that while some of the lions his clients hunted were “in very large enclosures” as opposed to the wild, he “didn’t book canned hunts.” “A canned hunt is where they basically have the lion in a very small enclosure and they release it the day of the hunt and chase it down and shoot it…I don’t book those hunts,” he told me, sounding almost insulted at the fact that I had mentioned it. But others do know of it. And as mentioned above, the number of Canned Hunting farms is on the rise thanks to the demand for it from tourists and sex-potion manufacturrs in East Asia. PEDDLING SEX WITH LION CARCASSES On Thursday, August 9th, 2012, Avaaz began its second phase of a campaign directed at South African President, Jacob Zuma, asking him to put a ban on the exportation of Lion Bones. The first phase was on June 27 of this year when they sent him a petition with 697,011 signatures from around the world asking him to ban this inhuman trade. According to an Avaaz Press Release, most of the bones being exported are coming from lions hunted in Canned Hunting Farms but with a growing demand, there are fears that wild lions will also come under fire. Jamie Choi, Campaign Director for Avaaz, told me in an email that “according to the [Convention on International Trade in Endangered Species of Wild Fauna and Flora] (CITES) and confirmed by South Africa Environment Minister [Edna Molewa], lion carcass exports have increased by 250% between 2009 and 2010 – with over 300 lion carcasses exported to Lao and Vietnam in 2010.” Advocacy Organization LionAid has estimated that a full lion skeleton goes for around R24,000 to R40,000

in the market (between $3,000 and $5,000 USD). “Other unconfirmed figures put their value in excess of USD10,000 in some Asian countries,” said Choi. “This makes the lion bone trade an extremely lucrative market for the small group of South Africans involved in the business – enough to even make wild lions the targets of poaching attacks.” Currently there are just over 20,000 wild lions left in the whole of Africa, down from 200,000 in the 1970s. “In South Africa, there are now only an estimated 2,200 lions in the wild, most of them in Kruger National Park,” Choi told me.

At this rate, many conservationists believe lions could be next in line for extinction, behind the tigers and the rhinos. The reason for the second phase of the campaign, which is an Ad Campaign displaying hard-hitting ads in “Johannesburg Airport’s International Arrival Hall, South African Airway’s inflight magazine, and key Google search engines,” is the lack of response from either President Zuman’s office or from the office of the Minister of Water and Environmental Affairs. “Earlier this week we sent a letter via email and fax informing President Zuma and Minister Molewa about the launch of our ad campaign and have followed up with phone calls,” said Choi. “We are yet to receive an official response from their offices.”

articles and world-wide campaigns continue to shed light on these dark, atavistic practices. For their part, the 2009 South African Minister of Water and Environmental Affairs said in an official document in that same year, answering a question posed by the Secretary to Parliament, that: “The department regards canned hunting as a reprehensible practice and the judgment will ensure that this practice will indeed come to an end.” Moreover, under Section 57(1) of the National Environmental Management: Biodiversity Act, No. 10 of 2004, it is stipulated that a person may not hunt “without a permit issued in terms of Chapter 7 of the Act.” The Arbitrage Magazine has contacted the Office of the South Africa Minister of Water and Environmental Affairs asking what has been done to put a stop to the canned hunting farms since 2009 and what kind of controls there are for the issuance of licenses. We are still awaiting a response. There are many organizations out there like Four-Paws and Avaaz, to name a couple, that have begun petitions to gather community support in an attempt to stop this brutal “sport”. Personally, I believe that it is time for the government to really step in and stop such an atrocious trend before South Africa’s image is permanently tarnished.

The Ad Campaign wants to draw attention to these issues from the tourist industry, which looks to take a hard hit if more information like ads, Fall 2012 ARBITRAGEMAGAZINE.CA

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

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Are Bookstores A Thing of the Past?

The potential closure of the World’s Biggest Bookstore is only one of many By Megan Harris

Illustration: Juliana Sauve

Design: Juliana Sauve

The year 2012 might bring shocking news to book lovers of Toronto-the closure of the iconic, World’s Biggest Bookstore.

expensive. There’s also The Book Mark, Toronto’s oldest independent bookstore after opening in 1965, which closed this past January due to high rent and property tax costs. The Flying Dragon bookstore in Toronto’s Leaside neighbourhood also announced its plans to shut down last May, days after being named Specialty Bookseller of the Year by the Canadian Booksellers Association.

Owned by Indigo, the World’s Biggest Bookstore is a 64,000 square feet space that includes nearly 20 kilometers in bookshelves. Although the store doesn’t feature the small bookshop charm, it’s definitely become a popular fixture of downtown Toronto. But with its lease expiring in December 2013, Toronto Life reports that Indigo is, “seeking a significant reduction in the annual rent of roughly $1.5 million dollars” and that the building’s owners are looking to find another tenant. And given its excellent location in downtown Toronto, finding a profitable new tenant wouldn’t be a difficult task. “The existence of a large retail space like this, just steps from Yonge and Dundas is the hen’s tooth of all hen’s teeth - incredibly rare,” broker Stuart Smith, vicepresident of the urban retail group for the commercial real estate company CB Richard Ellis, told the Toronto Star recently. “I’ve had the biggest of the big [retailers] looking at it from all over the world.” It’s not the first time a beloved bookstore has closed in Toronto. Take Pages Books and Magazines on Queen Street, which closed in 2009 after rent became too

The list of bookstores closing in Toronto - and even across Canada - could go on and on. In today’s economy, it seems that people still love bookstores and the atmosphere they provide, but not enough to generate revenues to support the increasing costs of running a business. A lot of blame is placed on the increasing popularity of e-books. Last year, online retailer Amazon announced it was selling more e-books than hardcover and paperbacks combined. And while it’s true that e-books are more convenient, more portable, and easier to bring on a commute to work, to name a few features - isn’t there something nice about picking up a real book? And exploring a bookstore to find a book? It’s clear that not everyone is happy with the closure of bookstores. But can enough booklovers fight for them to stay open before they disappear forever?

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Pink Floyd:

Band to Multi-Million Dollar Brand

WRITTEN BY : NAZIFA ISLAM, STAFF WRITER

PHOTOGRAPHY : RON KELNER

DESIGN: RON KELNER

The Power of its Music Keeps Pink Floyd Relevant Walking through the auditorium doors of the Rogers Centre on June 23rd, one might have mistaken the year to be 1970. Crowds of people swayed along to “We Don’t Need No Education” while wearing Pink Floyd shirts. The only thing that reminded us that it was 2012 was the large screen on stage that alternately portrayed a brick wall with scores of graffiti and pictures of those who had fallen in war, from soldiers to civilians. For the next 2.5 hours as Rogers Water delivered a spectacular performance of music and pyrotechnics, it became clear that this was more than just any other concert. Welcome to the Rogers Waters Performance of The Wall in Toronto 2012.

Pink Floyd began as a mix of psychedelic and progressive rock in Cambridge, UK in 1965. Currently, the band’s members included Roger Waters (vocals, bass) and David Gilmour (vocals, guitar) who was brought into the band in 1968 to replace the band’s founder, singer, guitarist and songwriter Syd Barrett, Rick Wright (organ, keyboards, and vocals) and Nick Mason (drums). The Wall tour is currently only performed by Waters. With fans numbering to millions, Pink Floyd’s humble beginnings seem almost unbelievable. During the sixties, Pink Floyd only performed for the underground band scene. The band’s rise to success did not come before their 1973 release

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Perhaps the most striking thing about “The Wall” is its blatant and unapologetic antagonism towards government and big companies.

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of The Dark Side of the Moon which remains the second best-selling album of all time. Additionally, Wish You Were Here, Animals, and The Wall are among the best-selling, most critically acclaimed and enduringly popular albums in the history of rock music (Last.fm). They have sold over 200 million albums worldwide and with 74.5 million certified units in the United States, it is safe to say Pink Floyd is one hell of a great artist. Albums like Wish You Were Here have propelled the band’s reputation as a harsh critic of the music industry. But today, Waters has turned the focus away from the music industry to government corruption and the consequences of war. During Waters’ performance of “The Wall”, several photographs of civilians who lost their lives in crossfire were displayed on the screen. Waters also takes a stab at capitalism, targeting big-name companies from all sectors including automanufacturing, food, and technology.

Perhaps the most striking thing about “The Wall” is its blatant and unapologetic antagonism towards government and big companies. One might expect that the tour would be censored but nothing of the sort has happened as of yet. Instead, Pink Floyd has grown over the decades from a rock group to an international brand with a massive following.

Floyd has an iPhone App to their name. But does that mean it has become a brand entirely, or is the music still the driving force behind their success? The overwhelming audience enthusiasm as Waters belted out “We Don’t Need No Education” would certainly suggest the latter.

To attest to the enduring nature of their music, you need to look no further than sold out shows of Waters performing the Wall. Whether it’s good music that’s kept them on the musical radar, or Waters’ tours, Pink Floyd refuses to be forgotten. In fact, until Adele’s chart-topping release 21, Pink Floyd’s The Dark Side Of The Moon, ruled the roost on the list of best-selling UK albums. The music is undeniably unforgettable and The Wall continues to make profits on songs that are over thirty years old. And as a final seal of success and powerful brand-marketing, Pink Fall 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL AFFAIRS

WRITTEN BY : CAITLIN MCKAY, STAFF WRITER

DESIGN: TIM WALKER

Within the American identity is a claim to be the international protectors of individual rights, freedoms and democracy. However, their perceived role on the global stage is not being backed by action. In fact, new policies surrounding protests suggest that America might be moving towards antifreedom and democracy. H.R. 347, better known as the Federal Restricted Buildings and Grounds Improvement Act was signed by President Obama in 2011. This act makes it illegal to knowingly enter and remain on the grounds of a protected building. At ﬁrst glance, it seems like a sensible act to implement. Once scrutinized however, it’s evident that this new law does not hold up democratic principles.

Banning Democracy Before I get into its speciﬁc criticisms, a brief history lesson is necessary. Don’t worry though, I’ll keep it short! In 1998, former US president Bill Clinton signed the Presidential Decision Elective establishing the National Special Security Events (NSSE). This act would allow Homeland Security to determine whether certain events were a threat for terrorism or criminal activity. If a threat were thought to be strong then the event would be considered a NSSE. Such events included the presidential inauguration, world summits, diplomatic visits and presidential nominations conventions. When an event is designated to be a NSSE, the United States Secret Service is put in charge of security. As you can imagine, full security measures were

ARBITRAGEMAGAZINE.COM Fall 2012

put in place including body guards in black tuxes and snipers watching from the roofs. In this case, the movies are an accurate depiction of reality. And until 2011, this was how important events were handled. Then conveniently after the Occupy movement began, US Rep. Tom Rooney introduced H.R. 347 or the Federal Restricted Buildings and Grounds Improvement Act of 2011. This dully-titled act amends 18 U.S.C SS. 1752, Restricted Buildings or Grounds. No one really wants to pay attention to what buildings he or she are and are not allowed into. However, the minor amendments to the law have some very serious implications that all Americans should pay attention to.

INTERNATIONAL AFFAIRS

Rooney’s bill, back in 2011, proposed to remove the word ‘willfully’ from the existing law. Before it, the secret service could only arrest a protestor if they had knowingly and willfully entered a restricted area. Now, with the removal of the word ‘willfully’, a trespasser can be arrested and charged even if they did not know it was illegal to do so. Okay. History lesson is over. And now that you have an understanding of the new act, let’s go into the implications. Representative Justin Amash, one of the few US Reps to oppose the act, explained it this way in a public statement to the press, “The bill expands current law to make it a crime to enter or remain in an area where an ofﬁcial is visiting even if the person does not know it’s illegal to be in that area and has no reason to suspect its illegal.” This change could discourage potential protest from happening because protestors fear getting arrested. Jeanine Molloff, writer for the Hufﬁngton Post further elaborated that, “...it potentially makes peaceable protest anywhere in the U.S. a federal felony punishable by up to 10 years in prison.” She said in her article H.R. 347 ‘Trespass Bill’ Criminalizes Protest. Call me a leftist, but that punishment seems a little harsh. Opponents to the act said it infringed on the 1st, 2nd, 4th, and 6th amendments. The Bill of Rights refers to the collective 10 amendments made to the United States Constitution. While the 2nd, 4th, 5th, and 6th amendments are important, H.R. 347 most outrageous violation is the right to expression, which is the 1st amendment. The right to expression is a fairly broad concept but includes an American’s right to free speech and peaceful assembly. According to this amendment, it is within an American’s human right to be critical of the government and to express that criticism through assembly via protest. The ability and freedom to protest is fundamental to a democratic and

accountable government. If citizens are unhappy with the current leadership, they should be able to take it to the streets so long as it’s peaceful.

One of the biggest criticisms of the bill is the vague language. With the removal of the word ‘willfully’, the onus is on the citizen to know which areas are restricted and which aren’t. Theoretically, a tourist could enter a restricted area and be arrested for trespassing. Some family vacation, eh? In a guest post on the award winning legal blog, jonathanturley.org, Gene Howington highlighted how this relatively minor change would affect Americans big time. “The reworded law, as the bill is currently formulated effectively does away with intent as a requirement in addition to expanding the meaning of the term ‘restricted buildings or grounds’ to mean virtually any place in proximity to or place proper a government function or an ‘event of national interest’ is taking place. This would allow for the arrest of protesters just about anywhere. Outside political rallies, near the hotels of visiting foreign dignitaries, outside sporting or other public events like the Super Bowl . . . you get the idea.” said Howington, in his guest post, entitled Imprecise Language and the Risks of H.R. 347. One of his biggest criticisms of the bill is the vague language. “It seems to be a trend that vague or overly broad language could be fairly described as being purposefully adopted allowing ‘wiggle room’ for Federal authorities to potentially abuse civil and human rights under the color of authority. This is a dangerous practice.” wrote Howington on his guest post. “Is this an instance of vague/ imprecise language creating the potential for civil rights abuses? Or it this an instance of purposefully vague/imprecise language

to allow the government to infringe upon your rights to free speech, assembly and petition?” Welcome to the new America, the land of the not so free. In response to the critics, Michael Mahaffey, Tom Rooney’s communications director, issued a public statement which dismissed public concerns. “...a whole lot of kerfuffle over nothing. This (H.R. 347) doesn’t affect anyone’s right to protest anywhere at any time. Ever.” He said in a public statement. “... right now it’s not a federal violation to jump the fence and run across the White House lawn, this bill makes it a federal violation.” Mahaffey says citizens can protest just so long as it is not disruptive. Um. The point of the protest is to be disruptive. Protestors don’t want to sit quietly on a Sunday afternoon hoping officials will notice them. If a citizen goes to a protest, they can almost expect to be arrested because almost anything can be classified as “disruptive” if the official chooses it to be so. In a democratic government, the power is supposed to rest with the people. The government, as a servant to the people should be listening to the wants and needs of all citizens. Even if they do not act upon those views, it is still necessary to listen. This law takes away the ability of citizens to publically criticize their government. Well, technically one can still criticize them in jail but it’s less effective when one is serving a ten-year sentence. America prides itself as being a free and democratic country. Yet it has created harmful laws, which stifle freedom of speech, break up assemblies and muffle the ability to criticize. That does not sound free or democratic. Should the American public take some time to self-reflect? Of course, if they don’t think rights and freedoms are important then this is just a “kerfuffle over nothing....”

Fall 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL AFFAIRS

Slowdown of Chinese Housing Sector May Damage Could the recent hit to the housing sector threaten the nation’s rise to prosperity? Written By: Siavosh Moshiri, Staff Writer In 2010, China replaced Japan as the world’s second largest economy. This event characterized a major shift in economic power years in the making. But Wang Tao, an economist at the UBS Bank of Beijing voiced the thoughts of many when he said, “This is just the beginning.” At one time, it was customary - nay, necessary for Chinese men anad women to go to Western countries to get a chance

Photography: www.cn.wsj.com Design: Katherine Chu

to live a better life. Now? The “sea turtle” effect is in full swing; Chinese immigrants who had spent years in Canada, USA and England packed up en masse to come back and take advantage of a 4 percent unemployment rate. But is the 8 percent growth rate beginning to look too optimistic? After a booming economic year in 2011 housing sales, which make a significant

ARBITRAGEMAGAZINE.COM Fall 2012

portion of the GDP, have dropped. Moody’s reports numerous concerns about the imp ending cash squeeze facing China’s real estate developers, many of whom owe substantial interest payments on loans. This could lead to a severe loss of jobs as well as insolvency for China’s highly leveraged real estate developers. However, China can take comfort in certain economic qualities that make

it versatile during an economic slowdown. Its government still possesses the financial resources to increase spending and cover the debts of the real estate contractors if worse comes to worst.

SCIENCE & TECHNOLOGY

Nintendo Unveils the WiiU Success or failure? – Only Time Will Tell WRITTEN BY: KRISTOPHER REARDON ILLUSTRATIONS: MARK QUIMOYOG

DESIGN: MARK QUIMOYOG

Nintendo’s newest video game console, the WiiU, has a lot to live up to. It comes after the astronomical success of the Wii, the sales of which arched high in its early to mid-life cycle but have been steadily slumping for the last few years. And its investors are not pleased. Irked at a drop in stock prices, Nintendo’s shareholders believe that Nintendo should be expanding its software for the iPhone instead of its current gaming platform, the 3DS. In attempt to stir up some excitement surrounding the WiiU, Nintendo unveiled the new console to a crowd of developers and gaming press at the Electronic Gaming Expo. Unfortunately though, this reveal was

ARBITRAGEMAGAZINE.COM Fall 2012

little more than trailer bait. Instead of wowing the audience on the amazing applications of WiiU, the unveiling simply teased the audience with the WiiU’s iPad like controller with touch screen and analog controls and an extended montage of people smiling with the device. What should have been Nintendo’s moment to steal back the spotlight feels more like an abrupt curtain call on the hysteria building up about the WiiU. Even the gaming press, with all their eagerness to see the WiiU grew forlorn because after a year of waiting its game lineup is anemic. WiiU’s innovations are hardly different than the lightning in a bottle that

SCIENCE & TECHNOLOGY

Nintendo’s biggest competitors, Sony and Microsoft, have been trying to capitalize on for the last couple of years. You would think that Nintendo would’ve been better prepared for the launch of a new console. After the conference was finished, Nintendo’s stock dipped two percent on the Osaka Stock Exchange, something that probably sent a few giggles Sony and Microsoft’s way considering their conferences actually raised stock prices. Post-conference, Nintendo’s North American spokesman says consumers will be pleasantly surprised by the WiiU price point but neglected to explain how. Meanwhile, current

reports point to next generation software being cranked out by development houses, a sign that new Microsoft and Sony systems are well on their way. Nintendo already had a disastrous fall with the launch of 3DS. Nintendo CEO Satoru Iwata even felt compelled to

apologize for the price drop of the 3DS and offered early buyers free software to compensate. But will WiiU be Nintendo’s next riches to rags story? It’s still too early to tell. Until then, weary eyed gamers worldwide will keep on waiting.

You would think that Nintendo would’ve been better prepared for the launch of a new console Fall 2012 ARBITRAGEMAGAZINE.COM

SCIENCE & TECHNOLOGY

Why you

CRAVE Junk Food

written by: maham abedi, staff writer

PHOTOGRAPHY: RON KELNER

DESIGN: RON KELNER

Sleepy Brains Crave Junk Food

Let’s face it-we’ve given into dreams of sugar-filled donuts and salty potato chips. Staying away from devilish junk food is never easy. But what makes some days harder than others when it comes to controlling our diets? The answer may be as simple as being sleep deprived suggests a study conducted by New York’s Columbia University and St. Luke’s-Roosevelt Hospital Center. In the study, 25 men and women of regular weight were asked to look at pictures of healthy and unhealthy food after sleeping for either nine hours or four hours for five days. Scan results of their brains showed that when looking at images of junk

ARBITRAGEMAGAZINE.COM Fall 2012

food on four hours of sleep, the reward centres of their brains were activated. The study’s principal investigator Marie-Pierre St-Onge suggests that sleep deprived brains are more likely to succumb to cravings for unhealthy food because it feels more rewarding. Toronto-based nutritionist Janet Zdichavsky explains that when we are tired, levels of leptin, a hormone which reduces hunger are significantly lower. While levels of another hormone called ghrenlin rise, stimulating our appetite. Zdichavsky also suggests that maintaining an alert and wakeful

SCIENCE & TECHNOLOGY

Scan results of their brains showed that when looking at images of junk food on four hours of sleep, the reward centres of their brains were activated state is crucial to making conscious, healthy choices in the kitchen.

“Identify stressful situations and try to improve them. Switch off work in your leisure time and try some relaxing techniques such as deep breathing, yoga, taking a warm bath, or participate in regular, moderate exercise to reduce stress,” says Zdichavsky.

Zdichavsky recommends eating foods such as bananas, dates, figs, whole grain crackers and yogurt which are high in tryptophan, an amino acid which is considered to be a sleep aid. Eating foods high in calcium and magnesium, such as grapefruit can also help with insomnia.

The key to overcoming fatigue caused by sleep deprivation is to have a full, balanced breakfast that helps refuel energy stores. Having a healthy breakfast before a hectic day is proven to increase alertness, physical energy, concentration and mood and will lead to healthier choices for the rest of the day.

This lifestyle change can be difficult, Zdichavsky says, “If you fall off the wagon, dust your self off and get back on.”

Fall 2012 ARBITRAGEMAGAZINE.COM

BIZ START UP

Four Pillars of Successful Entrepreneurship Golden tips to help you achieve your dream Written by: Laura Garzon

Photography: Abad Mahava

Design: Eman Faiz

BE CONCISE Just like an elevator pitch, keep your a d v e r t i s i n g short and specialized to customers. For a new business, M o o re s a y s that every person you talk to is a potential client. Therefore, always have a sales pitch ready to go for the client on the rush.

need. «Use a cell phone rather than incurring the cost of a landline. Don’t hire employees full-time, but instead have people work for you on a contract basis.» Unless you try to cut c o r ne r s whe re you can, it’s extremely difficult to produce revenue as a start-up company.

important tool to sell your p r o d u c t s u c c e s s f u l l y. When distributing posters didn’t do much for his business, Jose turned to social media and saw sales pick up. “I have found that when you create an event and many people click on “ g o i n g ,” i t b u i l d s u p credibility,” he said.

KEEP EXPENSES LOW In other words, cut out the wants out of your expenses. Moore explains that it’s important to limit your expenses to what you

PUBLICITY Jose Sandoval, aged 23 a nd owne r of S a l s a Fo r c e emphasizes that finding the right kind of p u b l i c i t y i s t h e most

DO A TRIAL RUN Tr y o u t yo u r b u s i n e s s b e f o r e formalizing it. “Incorporate if n e c e s s a r y, b u t n o t , necessarily incorporate,”

ARBITRAGEMAGAZINE.COM Fall 2012

says Sean Moore, Founder and Director of Advocacy School, a social enterprise aimed a t imp rovin g the c a pacit y of organizations to lobby on public policy. According to Moore, entrepreneurs shouldn’t endure the cost of legalizing a company unless they know their business plan really works. He adds, «That is ultimately what you want to do, but sometimes it’s better to star t more informally.”

THE INVISIBLE POOR OF

IN 2010, 15.1% OF ALL PEOPLE LIVED IN PORVERTY. THATS ABOUT 46.2 MILLION.

1 OUT OF 6 AMERICANS IS

NOW ENROLLED IN AT LEAST 1 ANTI-POVERTY GOVERNMENT PROGRAM.

SINCE 2007, THE NUMBER OF PEOPLE ON FOOD STAMPS HAS

74%

WHAT MAKES SOME PEOPLE POOR? BEING BORN INTO A POOR FAMILY

NO EDUCATION

EVERY YEAR IN THE UNITED STATES 1.2 MILLION STUDENTS DROP OUT OF HIGH SCHOOL NEVER SAVING MONEY

ADDICTIONS

IN 2008 THERE WAS AN ESTIMATED 7 MILLION DRUG ADDICTS IN THE UNITED STATES.

IN 2009, 27% OF AMERICANS HAVE NO PERSONAL SAVINGS.

BORROWING TOO MUCH MONEY

INCARCERATED

AVERAGE CREDIT CARD DEBT, $15,799 PER UNITED STATES HOUSE HOLD.

ILLNESS NOT WORKING AT ALL

DISABILITY

THE UNITED STATES HAS, 36 MILLION PEOPLE ARE ON DISABILITY.

STAYING IN A DEAD-END LOW PAID JOB

THERE ARE NOW OVER

6,400,000

AMERICANS THAT HAVE COMPLETELY GIVEN UP LOOKING FOR WORK.

Information used in the creation of these graphics were sourced from PayDayLoan.co.uk and Now Sourcing.

Graphics Created By: Laura Prosser

THE UNITED STATES HAS, 760 PRISONERS PER 100,000 CITIZENS.

BIZ START UP

How Far Can Canadians Imagine? Imagine Canada’s President and CEO explains why the ever expanding non profit sector needs innovative students like you written by : liana crocco, online editor photography : sophie qi

design: sarah sia

If the word “imagine” conjures ideas about freedom and unstoppable innovation in your mind, then you already have a fairly accurate portrait of the work being done by Imagine Canada. Arbitrage Magazine recently had the privilege of interviewing Marcel Lauzière, President and CEO of Imagine Canada. Imagine Canada’s mission statement is three fold; firstly, the organization aims to extend the reach of the charitable and non-profit sector; secondly, it functions as a forum that facilitates the exchange of information, expertise, and innovation. Thirdly, Imagine Canada strives to establish an environment that easily enables charities to support their communities by looking

at taxation issues, capacity building issues, labour market issues, and the like. In order to realize these goals, Imagine Canada collaborates with the government on a number of fronts. For example, the organization is currently in talks with the federal government about the promotion of the Stretch Tax Credit which Lauzière describes as “a new type of tax rate to challenge Canadians to give and to give more”. Lauzière emphasizes that “what we need to do is talk to Canadians of all walks of life…and tell them when you donate to a charity, whether you’re donating 25 or 300 or a 100 dollars, [it] makes a huge difference”.

ARBITRAGEMAGAZINE.COM Fall 2012

In addition, Imagine Canada and the federal government are currently looking to create a regulatory environment that will allow charities to innovate in terms of revenue generating methods. For example, Lauzière points out that Imagine Canada currently hosts an online directory “that helps charities identify both corporate and private foundations to get funding – to fund their services”. Despite the government’s role in the creation of such resources and strategies, Lauzière emphasizes that a number of Western governments are increasingly focusing on how they may manage the economy, not leaving much room for “broad, innovative policy thinking”. He

BIZ START UP

points out that “what we are going to see is the non-profit sector taking increasingly important roles” in the realm of public policy. Lauzière elaborates: “We [the non profit sector] are actually dealing with some of the most intractable social, cultural, environmental, economic issues, and we need to track the best talent to come and work with us to try and address those issues. That is really exciting and hopefully, if we can get on the radar of students, then there may be increased interest to come work with us”. Lauzière says he would encourage students to think about the non profit sector as one that provides them with the “opportunity to experience

a variety of different types of jobs and responsibilities” while making meaningful contributions to society. Jobs in the non profit sector are flexible and allow students to make full use of their imagination while supporting the immeasurably valuable work of Canadian non profits, including charities. The charitable and non profits sectors are indeed performing essential work that allows this country to continually improve the quality of life for its inhabitants and countless others across the world. Lauzière has a few tips for you if you’re contemplating a career in the non profit sector; firstly, you should seek out organizations that arouse your interest. Then, volunteer with these organizations to get a better sense of

their work and speak to people with a career in the sector, inquiring after their reasons for joining. Imagine Canada is also seeking to raise awareness about the role and contributions of charities through the Students Verb Charities contest, the aim of which is to get charities on the Canadian radar in a compellingly creative way, “through dance, through writing, through music, and of course, social media”. Further information is available at this website: http://www. studentsverbcharities.ca/en/, and though first prize is worth $50,000, the effect of the winning campaign will most likely be immeasurable.

Fall 2012 ARBITRAGEMAGAZINE.COM

STUDENT CO.

Say This, NOT That to Your Professor:

A Critical Review

written by : caitlin mckay, staff writer

illustration : tim waler

design : tim walker

An evaluative review of a guidebook that claims to help undergrads Say This, NOT That to Your Professor: 36 Talking Tips for College Success by Ellen Bremen, is a guide for postsecondary students on how to communicate with professors. While her advice is sound and certainly helpful, it is not particularly groundbreaking. The 259 page book can be summed up in one sentence: use your common sense. For example, Chapter One explains why your parents should not handle your problems at university or college. Quite frankly, if you are still getting your parents to fight your battles after high school, you might want to re-evaluate if you’re ready for postsecondary education...or life for that matter. Moreover, Bremen makes the assumption that all professors

ARBITRAGEMAGAZINE.COM Fall 2012

enjoy teaching and want to see students do well. “Professors got into the education business because they want to help students. This is what we’re paid for and what we voluntarily signed up to do,” Bremen says on page 93. Not true. Many professors do not like teaching but rather reluctantly accept it as a condition of their research grant. “Professors’ attitudes do vary according to the institutions in which they work,” says Dr. Darryl Dee, a professor of French History at Wilfred Laurier University. “At institutions like the University of Toronto or the University of British Columbia, where the emphasis is on research productivity, most professors would see themselves as scholars first and teachers second.”

STUDENT CO.

To some professors, teaching is the academic equivalent to clerical filing, which is painful and tedious. With that assumption in mind, Bremen’s tips about do-overs and asking for help seem a little naive. The reality is some (and I stress some) professors are not interested in helping you and will only agree to office hours after some serious arm twisting.

to build a good relationship with a professor, and that is a good student because they want to do well. But a good student already knows to start assignments early, work hard and ask for help. Students who haven’t figured out these tips but need them are unlikely to purchase a post secondary guidebook.

Next, the author fails to provide practical tactics that students can use to build a relationship with their professor and get better grades. The advice a student really needs, and what the book fails to provide, is how to make their meeting with their professors more efficient and effective.

Buy another round of beers, because thats money well spent

“Come with questions prepared. Read assignments—better, start/ complete assignments before you come for help—and it’ll be better for everyone. Also, maintain basic hygiene. Yes, this is an issue” says Ian McKay, a PhD candidate at Cornell University. There is only one type of student who purchases a guidebook about how

In the interest of full disclosure on my final criticism, I just graduated from Queen’s University and I am interested in applying for my Masters. So, as recent graduate, I am interested in how to build a relationship with a professor and stand out to get a good reference letter.

join; read their work and ask them something intelligent about it when you see them around campus,” Advises McKay, whose program required three academic references. “Frankly, if you want to stand out you should be both an overtly [and sincerely] nice person and a good student (smart or not). Someone who is good, interesting, and pleasant to be around is going to be memorable.” And what is my advice to students? If, after you’ve paid your tuition, bought your textbooks, paid your first and last, bought a pint of beer, and you have the $15.95 (or 9.96 on Amazon) left over - buy another round of beers, because that’s money well spent.

“If you have a particular prof that you want to build a relationship there are a few things you can try: find out if they are involved with any campus clubs/groups and Fall 2012 ARBITRAGEMAGAZINE.COM

STUDENT CO.

How to Use Twitter to

Find A Job

written by : maham abedi, staff writer

illustrator: weimar lee

design: weimar lee

Tap into the platform’s more efficient side and stand out from the crowd We all use social media sites like Twitter, but it’s usually to update friends about weekend plans, what we had for lunch, or to guiltily stalk Kim Kardashian (you know you do it too). But if you’re a student or recent grad looking to jump-start your career or even a summer job, it’s time for you to tap into Twitter’s other, more resourceful side. Lauren Friese, founder of TalentEgg. ca, a website designed to provide students with career resources and jobs, says Twitter has an unprecedented ability to connect students with employers, if accounts are managed correctly.

The first and most common mistake people make when using their Twitter account for job hunting purposes is they post unprofessional updates. This doesn’t mean you can’t post a picture from your family dinner, but maybe stay away from sharing that you took a fake sick-day off work because you partied too late the night before. Friese calls these updates NSFE – not safe for employers. If you are going to make these more casual statements, definitely make your account locked or private. Once you’ve decided to tweet at least semi-professionally related updates, decide on a personal brand. How do you want to sell yourself to an employer? If you want to seem

ARBITRAGEMAGAZINE.COM Fall 2012

passionate about your field, tweet about it. “Use the opportunity [to tweet] to share relevant articles and connect with relevant people in your industry,” says Friese. You should also follow specific employers you’re interested in and tweet articles, facts and other matters to them that they may find interesting. Another helpful tip is to look out for opportunities to talk to employers. Every so often, they may ask a question or add a job posting; reply to these posts as soon as you see them. If you stay in touch with

STUDENT CO.

employers through Twitter, itâ&#x20AC;&#x2122;ll be your name that stands out among dozens of resumes. Your account should be laid out like an informal resume. Add a brief description of yourself, stating your education and most valuable experiences. It also helps to upload a general cover letter online and provide a link to it in your profile description. If you have a professional blog, also add a link to that. You also want to upload a headshot photo of yourself, so that you are easily recognizable on Twitter and in person if you happen to meet. The most important thing you can do is follow the right people and organizations. There are tons of job boards, recruitment agencies and companies out there looking for employees on Twitter.

Use the opportunity [to tweet] to share relevant articles and connect with relevant people in your industry

needs someone who can properly put sentences together. And finally, the most important rules for using Twitter to find a job: be yourself, be interesting, and tweet about things you care about, so that employers will want to hire you over someone else with the same qualifications.

You also want employers and other professionals in your field to follow you. To be noticed, and to have your tweets read by more people than just those that follow you; use relevant hashtags and commonly searched phrases. Make sure your tweets easy to read; you only have 140 characters, so be concise. Most imperatively, be grammatically correct. No matter what your field, every employer

Fall 2012 ARBITRAGEMAGAZINE.COM

Maximize your Time with the

80/20 Rule

Making life a little more productive by prioritizing the right things

written by : alexandria chun , staff writer

photography : shelbi noble

design: sarah sia

In the early 1900s, an Italian scholar named Vilfredo Pareto noticed that his pea plants yielded unequal amounts of peas. More specifically, 80% of his peas were consistently produced by 20% of the plants. This numerical observation proved to be more than coincidence when Pareto discovered that 80% of Italy’s wealth was owned by 20% of the population. These two percentages formed the basis of the Pareto Principle, also known as the 80/20 rule. It refers to the idea that 80% of the effect is produced by 20% of the cause. Forty years after Pareto, Economist Dr. Joseph Juran emphasized this idea by proffering that there’s always a: “vital few and trivial many.”

To put the 80/20 rule in perspective, let’s apply it to business management. The numbers help establish that 80 percent of your sales are generated by 20% of your sales force and 20% of your clients while 80% of complaints come from 20% of clients. As you can see, a large percentage of sales and complaints come from a relatively small percentage of the sales force and clients. Learning to address the vital 20% of clients and sales staff is therefore more efficient than addressing the non-vital 80%. The 80/20 rule isn’t just limited to business though. It can be applied to everyday life too. As a student, there are undoubtedly many things you have to juggle: school, work, family,

ARBITRAGEMAGAZINE.COM Fall 2012

a social life, hobbies…the list goes on and on. So how can you get the most out of what precious time you have and minimize stress? Apply the 80/20 rule. Generally speaking, 20% of the activities that fill your day have a greater impact than the other 80%. On any given day, how much of your time is truly productive? What activities have less of an impact? If you focus on that vital 20%, you can increase how efficiently you use your time. It’s okay to get sidetracked during the day. Things come up unexpectedly – your bus gets delayed, your computer crashes, your professor hands out a surprise assignment. Just don’t let it

take away from the vital 20% you had planned to get done. Here’s an example of how you can put the 80/20 rule to use. Say you’re behind on a stack of readings and have only a couple of hours to complete them. You could start at the top, regardless of the content, and risk missing the key readings. Or you could apply the 80/20 rule, skim through all the readings, identify the 20% that seem to hold the bulk of the information, and focus on them. Reading that 20% has given you 80% of what you need to know. In addition to saving time, the 80/20 rule can also help you save your energy. People tend to stress over a lot of things, but worrying about every little thing in your life is a major

energy drain. And 80% of things aren’t even worth worrying about because they don’t have much impact in the long run. Focus your energy on what’s important, on the vital 20% and don’t sweat the small stuff.

100% to the 20 percent. The 80/20 rule promotes efficiency, not mediocrity. But when time is a commodity, as it often is, it is important to allocate it appropriately.

Now you might ask, “How do I know what activities make up the vital 20%?” Unfortunately, there’s no formula to determine the vital 20%. But if you keep the 80/20 rule in mind, you can learn how to identify the more important endeavors of your day through experience. It is important to realize that vitality is not evenly distributed in life. As the 80/20 rule demonstrates, effort is not necessarily in a one-to-one ratio with results. That is not to say only give 20% or 80%. For best results, always give Fall 2012 ARBITRAGEMAGAZINE.COM

STUDENT CO.

Education vs.

Experience Which will pave the way for success?

The necessity for a university business degree is a highly controversial topic. Some claim it’s just a piece of paper, while others maintain that it opens doors to all professions, including those in business. But there is definitely more to succeeding in business than just a degree. Successful business consultant Mary Pat Blake, asserts that, “There’s one key to success above all others: truly know what your customers want, and deliver on it.” Sharp social skills and intuition are the key ingredients to any successful business, and a degree can’t teach that.

WRITTEN BY: KRISTOPHER REARDON

photography: shelbi noble

design: summer zhang

ARBITRAGEMAGAZINE.COM Fall 2012

There are other important virtues that a degree can’t provide: persistence and perseverance. Kee-Hong Bae, professor at the Schulich School of Business, cites that, “my experience

STUDENT CO.

photography: abad mahava

tells me hard work always works” in the word business. Doctor Ida Greene, a renowned consultant who trains and advises people in success, explains that the ability to sell products and a desire for a challenge is a sure way to thrive in the business world. After all, in order to have a successful business, you must sell its source: you. Greene goes on to say that you must be able to see opportunities and act on them to succeed in business. After all, he tells us “to succeed in the business world, you will need to be an opportunistic entrepreneur. Each day you live, you tread on uncharted terrain. Keep a keen eye. Be forever looking out for new opportunities; when you see one, seize it. It may not come back again.” Unfortunately, what also often happens with university students is that they don’t acquire the experience and connections that

would serve them well once they graduate and set off into the real world. They often think that if they have that “piece of paper” that says they can do something, they will be hired right off the bat. In other words, they think that a business degree guarantees them to a job. This mentality usually leads to an unemployed business school graduate. John Maxwell, author and speaker on the importance of leadership, emphasizes that, “the first step towards success is leading yourself exceptionally well.”

leads directly to failure in life and in business. Almost all the attributes that make a successful business person don’t come from a business degree, but from the person. A degree simply gives theoretical knowledge; while this is a good thing, it doesn’t make one a successful business person or a good employee. Experience, combined with connections and solid social skills, will make you unstoppable.

Although many people think that making good decisions is the key to self-leadership, it’s actually following good decisions that counts. Unfortunately, what often happens is that people make good decisions and have every intention of sticking to that decision but later lose their motivation to retain the decision. Ultimately, the loss of motivation Fall 2012 ARBITRAGEMAGAZINE.COM

ANNOYING CO-WORKER HABITS THE HABIT: Avoids doing any work.

1. SHIRKER WORKER

The CONSEQUENCE: 93% of workers say slackers reduce their productivity. Cost $300bn to the US economy last year.

THE HABIT: 2. CRAZY COLLEAGUE Throwing Tantrums and having argumentsin front of everyone. The CONSEQUENCE: Chronic unresolved conflict acts as a decisive factor in at least 50% of departures.

4. GROUCHY GRUMBLER THE HABIT: Being Pessimistic and Bringing everyone else down. THE CONSEQUENCE: A 2003 study put the cost of work place depression to the US Economy at over $44bn per year.

4. TRANSMITTER OF OFFICE TALES THE HABIT: Gossiping and Spreading rumors around the Office. THE CONSEQUENCE: Gossip costs UK firms over 8bn a year- “if you spend your time gossiping, you’re not doing the job you’re paid for”.

5. RACOUS RINGER THE HABIT: Speaking loudly on the phone, or banging on the keyboard as they type. THE CONSEQUENCE: On average, a person talks 3x louder when on the phone- about as loud as a vacuum cleaner. Graphics Created By: Laura Prosser

THE HABIT: Taking long beverage, bathroom, or smoke breaks. THE CONSEQUENCE: “Fag Breaks” cost the UK economy 21bn a year.

6. ROOTLESS ROVER

THE HABIT: Speaking excessively, especially during meetings. THE CONSEQUENCE: People who talk too much at work are likely to have fewer friends and lower promotion prospects.

7. OWN LARYNX LOVER

THE HABIT: Constant pen clicking, drinking slurping, and moud munching. THE CONSEQUENCE: In-office distractions cost businesses $10,375 per person, per year.

8. NOISY NEIGHBOUR THE HABIT: Being Foul-Mouthed. THE CONSEQUENCE: 64% of employees think less of employees who swear at work. 57% said they would be less likely to promote a worker who swears.

9. CURSING COLLEAGUES

THE HABIT: Coming into work when ill and coughing on colleagues. THE CONSEQUENCE: The total cost of in-office sickness to US employers falls anywhere between $150bn to $250bn each year.

10. GERM GENERATORS Information used in the creation of these graphics were sourced from Neo Mammalian Studios and casino-mate.com

INTERNATIONAL TRENDS AFFAIRS

PROJECT ONE12

One Girl, Ten Jobs and Six Cities Written by: Samadrita Guin, Staff Writer

Photography: Dan Campo

Design: Lily Li

Getting to know the amazing woman with 47 job offers right out of business school

ARBITRAGEMAGAZINE.COM Fall 2012

INTERNATIONAL AFFAIRS TRENDS

“ Dont' be afraid to fail or screw things up. The day you stop making mistakes is the day you stop learning” “Super-intern” Maeghan Smulders-as the Toronto Star calls her-has become an inspiration to aspiring business students. As a young, energetic and highly motivated student at Mount Royal University she graduated with 29 job offers, all of which she promptly rejected. She believed that beginning a career without extensive research and a hundred percent certainty of what step to take next was not justifiable. And so, she founded ProjectONE12, where she speed-interned for 10 companies all over North America. By the end of the project, she had landed 47 offers in total. She finally accepted a managerial position at Beyond the Rack, an online Canadian retail start-up. I was fortunate enough to interview her on some of her experiences and beliefs. When Maeghan was younger, she was determined to be a marine biologist. She had three fish tanks in her room, a water bed and her favourite movies were Flipper and Free Willy. So why the switch to business then? Well, she switched to business because of a family trip to Hawaii, where she got her first opportunity to learn what marine biologists do in their jobs. “So, when I got to hang out with some marine biologists and swim/snorkel with fish, I realized I hated it when they touched me. And that the job was not as exciting as I thought! A

year or two later I started working for a mortgage company, and I just loved the idea of being a business person”, she said. When asked about Project One12, she told us that she had a lot of fears when initially starting out. “I think the one that made it impossible to sleep was «What if it doesn’t work» or «What if I fail»? I had pitched what I was going to do to all my friends, family, peers and teachers, and a lot of them thought I was crazy. But no matter what you pitch, you have to be confident in what you are doing or it won’t work. So I remained confident, but deep inside was screaming fear.” She strongly believes in the mantra that that challenge is inevitable, but defeat is optional. In the case of a hurdle, looking at it from a different perspective makes the difference. Maeghan was kind enough to share some of her insights about the project with us. Q: Along your journey, you probably encountered a whole lot of different emotions, and numerous experiences that could have clogged your mind from making a clear decision. How did you keep your mind clear and ultimately decide on BTR? A: Yes, I did develop emotional

connections with the companies, the people and the places I visited. It made it really tough to make a decision. But when I finished, I took two weeks off to come home and be with my family. One week was to “Vacation” and not think about ANYTHING project related. So after the week vacation, I spent the second week thinking about the things I enjoyed, the aspects of the project/work/journey that taught me about what I wanted to do and then picked a company that could offer me what I was looking for. I was really lucky BTR gave me what I was looking for and more. Q. Out of all the different cities that you visited, which one did you find the most exquisite and culturally engaging? A: They were all so different! I loved Montreal, it was like experiencing Europe…that accepts Canadian money! But on top of that, they are a fast paced city. They have great businesses in the area and there is such diversity to what you can do. I did notice a difference though in the culture of work in each city. Toronto is very fast pace and straight to the point where as Vancouver is much more laid back and relation orientated. San Fran was competitive, but everyone was willing to help. It felt like a big community.

Fall 2012 ARBITRAGEMAGAZINE.COM

INTERNATIONAL TRENDS AFFAIRS Q: How do you think the project has changed you? What changes have you noticed in yourself, if any? A: Oh man, it has hugely changed me. I have a confidence in myself that I never had before. I see the value I am capable of bringing to the table (which I believe EVERY STUDENT should learn about themselves) and I approach work, problems and relationships differently. I see the value in them and the opportunity to do great things when you appreciate and find the why behind all you do. Q: If you could take away one lesson from Project One12, and pass it on to the future generations, what would it be and why? A: Gosh, there are so many. If I had to pick one, It would be “Dont’ be afraid to fail or screw things up.” The day you stop making mistakes is the day you stop learning. Mistakes give you the confidence to try new things, learn and be smarter in the way you view the world in the future. Its so valuable. Fear is what limits us from our full potential. Q: If you were to do the project again, would you change anything about it? Why or why not? A: I wouldn’t change anything. I learned so much from my mistakes, from my challenges, and from my successes. I am grateful for the adventure and I hope I can continue to share the knowledge that was so generously shared with me, with others. So what should university grads faced with limited job options do? Maeghan mentions that students have to put in more effort when it comes to finding a job and that sending a resume isn’t enough. It took 8 months of speed-interning for her to figure out the direction she wanted to go with her career. According to her, “North America has an over emphasis and unrealistic expectation on what

an education can bring us in our careers. Too often we assume that the more designations we have behind our name, the more likely we are to be given a job or direction, but that is never the case. We are off balance with the ratio of learning vs. doing, and it is something we need to address.” So what can you do right this moment? Maeghan would tell you to get your hands messy and try random things - there are coop programs, internships, opportunities to study abroad, volunteer positions which are all valuable. “Don’t be afraid to ask questions and meet random people. You’d be surprised at how quick opportunity, confidence and good fortune find you when you are challenging yourself and following what you’re interested in. This is what will get you noticed in the jobs playing field!” When asked about who are some people that inspire her, Maeghan provided us with a list of powerful individuals who have been highly influential in her life. Sheryl Sandberg, COO Facebook – A powerful woman wise in her balance with life/work who has been recognized as a leader in technology and business today. After meeting her, Maeghan admires the way she approaches business and represents a company as well as stands true to her values. Marissa Mayer, VP Google - Having done amazing things at Google, she continues to build the company to great heights. Maeghan says “She has a way of breaking down problems and finding solutions in very insightful ways. She’s a well spoken person and I love the way she shares her perspective of business.” Justin Bieber – Maeghan supports her answer by explaining that “This kid goes through so much! But I am absolutely in love with everything about him. His personal branding, connection with his fans, his ability

ARBITRAGEMAGAZINE.COM Fall 2012 Summer 2012

to deal with haters, and stick to what he loves. Its SO silly but I admire him and the “business” that was created around him. Its interesting, inspiring and gives me a unique perspective on how I hope to influence others.” Patrick Lor, Co-Founder of iStock Photo – Maghen confidently states, “He is my mentor and best friend. Its not every day that you meet someone who genuinely wants to share their perspective of the world with the intention to help you succeed in yours. Pat was my first boss in the project, and continued to mentor me through all of ProjectONE12. He gives so willingly to help others succeed, and I really want to do the same for others because I know he has had a radical impact on my life.” So what can we expect from Maeghan in the future? She says that she is currently working on creating a course that teaches aspects I have learned from ProjectONE12. Mount Royal University in Calgary is going to help her get the right resources in place so that she can share this knowledge with others. “My hope is for next year, I can have a fully credited course and turn it into a program that can be duplicated/offered across Canada,” she says. “You can also expect great things from Beyond the Rack in the next little while. It’s a team effort, but I am SO excited to help build a company to do bigger and better things. I’m ecstatic.”

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ATIVE MOVEMEN TI

O N

ER OP O C

THE RISE

written by : luis fernando arce, chief interviewer

photography : dan campo

design: sophie qi

BACKED INTO A CORNER AND LOOKING FOR ALTERNATIVES

catastrophe after the other worldwide since the 2008 meltdown.

“Cynic” some have called me – and some still do – when I’ve proposed either in a class discussion or in a drunken tirade in some bar that the capitalist system is failing us. The objective truth of this statement, h o w e ve r, s u p e r s e d e s my o w n weirdness – a tr uth which has manifested itself one financial

This reality is becoming more apparent to wo r k in g cl a s s fo lk a s t h e y desperately claw at any semblance of economic security like frightened animals as they realize the sad and ugly truth: that unfettered capitalism cannot solve all the world’s problems, and that it has “not helped working families,” according to Labour is Not a Commodity, a blog administered by

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TRENDS

credit firm created by Brendan Martin in 2004, an ex-Wall-Streeter that dropped the high-powered life of Bears and Bulls after being inspired by Naomi Klein and Avi Lewis’ movie called La Toma, which depicts the rise of the cooperative movement in that country. Hazel Corcoran, the Executive Director of the Canadian Worker Cooperative Federation (CWCF) – a “federation of worker co-ops across the country providing trade association functions like lobbying and conferencing, as well as support for the development of new worker cooperatives in Canada” – agreed that information is power as we chatted on the phone. She spoke hurriedly and excitedly, possibly because she was also packing for a trip, but it was obvious she was infatuated with the type of work she did.

FINDINGS ALTERNATIVES TO A TIRED OLD SYSTEM

fo ur organiz atio ns fo cu s e d o n international labour issues. As the economies of previously wealthy European countries collapse one after the other like dominoes, a radical component is budding across the globe with the strength and vitality of the anti-war demonstrations and civil-rights clashes of the ‘60s and ‘70s, with the exception that today we also have technology on our side. I could easily picture some angry old

general somewhere in the Pentagon, frantically pegging little red dots on an enormous world map plastered on a wall, highlighting all the countries where the Occupy Movement has ‘infiltrated’, starting with the United States of America itself. “Socialism isn’t a boogie-man anymore,” agreed Ethan Earle, a young thirty-something living in New York. Ethan is the Director of the U.S. branch of The Working World, a micro-

“You look at the Occupy Movement and…other social movements out there and it feels that it’s a time when people are looking for an alternative way to organize business, society and the economy,” she beamed. Indeed. The capitalist system’s biggest threat today is not the political left – represented one way or another in the Movements. Rather, it is the angry mob of educated and disillusioned young people who have taken to the streets to voice the roaring discontent of the middle- and working-classes. Judith Lipp is the Executive Director of the Toronto Renewable Energy Cooperative (TREC), which was created in 19 98 by a group of volunteers in order to create a community-owned wind energy project in Toronto. Today, it is a leader in the Renewable Energy Sector. She voiced a similar perspective except with a hint of pessimism when she told me, in a soft-spoken tone, that she thinks that although people may be looking “to align their values in various ways to participate in society…at the same time a large segment of the population is focused on status and money, and has lost

Fall 2012 ARBITRAGEMAGAZINE.COM

TRENDS touch with what their values are and any kind of long-term thinking.” She in fact doubts that “we’re close to breaking that cycle.” But there is something very interesting ab out the thre e p e ople I’ve mentioned: they all work directly with a new business-model that challenges the old and tired notion that workers must be led by bosses at the helm. Let’s face it, who hasn’t had that nauseating job where you had to deal with a belligerent, drunk-on-power fool of a boss who liked to find fault with everything you did while watching over your shoulder like a diseaseridden vulture? Well, I know I have. The worst part is that this is the best of cases: where in order to get fully paid all you had to do is eat a little shit. In other cases, the tendons in both your shoulders and elbows snap like worn elastic bands, sending you to the s u r g e r y r o o m, c a u s e d b y t h e repetitiveness and physical strain that comes with five years of unloading trucks, just to be given the boot when “management upstairs” claims that they can’t find any other job suitable to your doctored-prescribed limitations because of your lack of English, which at the factory floor, many minorities will agree, never matters. Ladies and Gentlemen, I give you: The System! But hope, as some famous poet once said, springs eternal. Two-thousandand-twelve has been declared by the United Nations as the International Year of Cooperatives (IYC), which has been “positive for the [cooperative] s e c tor” in Canada, w here the movement has really begun to “[wake] up,” said Corcoran. THE COOPERATIVE MOVEMENT IN ARGENTINA Since 1995, the owners of the Brukman Suit Factory in Argentina had begun to slash salaries unscrupulously, and

eventually ended up firing about half of their labour force. By 2001, with business through the ground, they just decided to abandon the factory and leave the workers unpaid. Seeing joblessness as an opportunity to band together, a group of 58 seamstresses bravely decided to walk into their factory and, like God did unto Adam, breathed life back into it. As they went along, the seamstresses al s o g r a s p e d h o w t o p e r fo r m administrative, accounting and managerial duties of a company.

On a very basic level, co-ops give people an opportunity to be the protagonist in their own jobs, in their own lifestories In order to tell this and many other similarly heroic stories that were bourgeoning in the aftermath of the economic collapse in Argentina at the turn of the century, Naomi Klein and Avi Lewis released La Toma (The Take) in 2004. The movie follows a group of Argentinian workers trying to legally obtain their abandoned factory at the same time that it depicts the rise of the Recovered Factory Movement in that countr y. Their stor y is not dissimilar to what many countries in Latin America and others around the world associated with the International Monetary Fund (IMF), have had to muddle through. At the cusp of the new millennium, as Argentinian President Carlos Menem welcomed the new year with a lavish party and champagne – the same political thug who just before the 2003

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re-elections would be on House Arrest on Corruption Charges – IMF Managing Director Michel Camdessus lauded that Argentina was indeed in a way to enter the “new century in a very, very solid basis.” However, outside of those lavish parties, while the glasses still clinked, the country was slipping below the poverty line due to “business friendly” policies that would come to be known as “El Modelo,” characterized by massive downsizing, corporate handouts and the sale of public assets to private companies. As rumours of an economic bust due to corporate failures spread like wildfire in the troubled nation, the currency began to drop quickly. Quite literally overnight, the wealthiest took out $40 billion dollars’ worth of Argentinian pesos out of banks in huge armoured trucks to send to offshore bank-accounts. Thrown into a grand panic, the government froze all accounts, in effect locking the working-class out of their savings while allowing the rich and the factory owners to hoist their money offshore. The people were left with nothing but an inept government, a crumbling economy and closed factories, which unleashed an epidemic of unemployment. Suddenly, Argentina, one of the most prosperous countries in Latin America, plunged into poverty. But as tradition has it in Latin America, the only logical response to extreme poverty was to PROTEST! Millions of people of all ages and backgrounds poured onto the streets with the force of a tsunami, all in angry solidarity over the government’s support of the counteractive IMF policies. In utter political and economic disarray, Argentina ended up declaring the “largest sovereigndebt default in world history” in 2002, a symbol, the movie says, of the widespread rejection by the people of the entire economic model itself, and

TRENDS not just of one politician or policy. Though years later, it’s been argued that that sentiment is exactly what the O ccupy M ovement is currently expressing. A MORE PERSONAL MODEL FOR BUSINESS Working class people exist in huge numbers in the Global North – people that have been screwed by management one way or another. The purpose of the International Year for Cooperatives is to bring to the forefront something that has been working quietly and efficiently for longer than people know. Indeed, the cooperative business model has time and time again presented both economic and social advantages to those societies that have adopted it. “On a very basic level,” Earle said, “co-ops give people an opportunity to be the protagonist in their own jobs, in their own life-stories.” Corcoran agrees. “I think one of the reasons why co-ops are so powerful is [precisely] because

people spend so much more of their lives and energy and focus as workers rather than as consumers, making work a really big part of their lives.” When you join a co-operative, the main attraction is its democratic nature. Worker-cooperatives like Big Carrot, for instance, where they have something like 70 staff members, Corcoran explained, “have something like 50 or 60 worker-owners.” What this means is that the people that work at the store also own it: “the principle that the members in control are the same member-group that shares the profits and that same member-group that decides on who the board members are,” Corcoran said. General meetings for all members are periodically held at the discretion of each cooperative and it is at these meetings where they decide on all decisions based on a one-member-onevote principle. The main principle by which cooperatives abide is solidarity

and cooperation, both internally and externally, so when it comes to wages, cooperatives provide every employee with sufficient pay to live a decent life. In Argentina, many factories have opted to pay all employees equal salaries, a decision made at a general meeting and by a democratic vote inclusive of all members. In other places, such as in Italy and Spain, two countries where the cooperative movement has solidified itself and shown blatant progress in the lives of all employees and the communities in which they operate, salaries are not always equal, although always equitable. In Emilia-Romagna, for instance, one of the largest regions in Italy located at the North of the European Boot, the Cooperative Movement has helped the average per capita income to climb to 21,025 Euros, well above the national average of 16,315. More importantly, despite a global trend, unemployment has continued

photography : tal gertin

Fall 2012 ARBITRAGEMAGAZINE.CA

TRENDS to drop in parts of the world where cooperatives are the dominant part of the economy such as in both EmiliaRomagna and in the Basque Region of Spain where Mondragon operates (a Corporation/Federation of over 256 cooperatives employing over 83,000 workers).

the United States, for instance, “housing co-ops and consumer co-ops are so numerous [in Emilia-Romagna] that they hold down prices, and most privatized social services are provided by employee co-ops (including 60% of home health care services),” Logue pointed out.

“Spain has an economy in a complete and utter mess!” Corcoran exclaimed jubilantly. “And Mondragon is there, still struggling, because their sales are being challenged and so on, but they don’t have any unemployment! They just share the pains; everyone gets paid a little less and maybe gets less hours, but no one is thrown out!” Similarly, in an essay by John Logue, Founder and Director of the Ohio Employee Ownership Center (OEOC) until his unfortunate death in 2009, it was found that in Emilia-Romagna, unemployment was at an “enviable 3% among the 10 richest of the European Union’s 122 regions.” As of 2011 it has climbed to 6%, which is still quite low. The region also remains the fourth largest Italian Exporter, and up to 30% of the region’s GDP comes from coops.

Community-focus is also incredible. In Argentina, cooperatives have not only worked in solidarity with one another, but have also subsidized and offered free products to charities, schools and community centers.

Making the case for the advancement of cooperatives in the U.S. and Canada, Earle pointed out that “the introduction of a cooperative into a traditional business ecosystem makes that system healthier…[by] pushing traditional employers to be more responsible and democratic with their workers.” The idea is that once workers realize that there is indeed a better system available by which they can control and organize themselves and therefore assure economic stability, Bosses and Management will think twice before laying people off in order to boost their own bonuses. Therefore, he concluded, “I think there’s certainly nothing [about cooperatives] that is incompatible with the U.S. economy.” Moreover, in stark contrast to the housing and general social situation in

A testimony from one of the sisters of a worker-owner of the Brukman Recovered Factory seen in the La Toma movie declares that under corporate management, her sister was docked pay every time she missed work to go for cancer treatment. Under the workers’ management, she told the camera elatedly, they pay her every cent she is owed even when she is getting her treatment. “This is the people we must support!” exclaimed the woman as she raised her fists and laughed for the camera. The Spanish cooperative Mondragon goes as far as to offer supportive capital and services internationally. FINDING “SUPPORT” Although it sounds like an easy concept – to support a movement which clearly empowers and provides a better life for the middle class – there are certain barriers to the movement. Firstly, investment from the private sector is hard to come by when high returns cannot be promised. “It’s a difficulty in some ways,” Earle said, “particularly when you take seasoned investors with a particular idea of what an investment has to look like. To a cer tain degre e,” he continued, “we’re trying to change the mentality of what we really need to be investing in: that is, looking outside

ARBITRAGEMAGAZINE.CA Fall 2012

of individual returns and thinking genuinely in investing in society at large.” The Working World loans money ranging from $1000 to $40000 to new and established cooperatives which would normally be turned away by traditional creditors as they have little or no collateral. It does this on very friendly terms, never asking for the money to be re-paid yet nevertheless boasting a 97% repayment rate. The organization began with funds from Martin’s own pockets and “two angel donors who have given [them] long-term support.” At this point, Earle said, it is “sort of a smorgasbord of funding,” since they’ve received as recently as 2009, a bit of financing from the Argentinian government through the Ministr y of S o cial Development under Leftist president Nestor Kirchner. “More recently,” he explained, “in a shining moment for the organization, t w o d i f fe r e n t fe d e r a t i o n s o f cooperatives actually had extra money that they had a mandate to use to support the growth of other worker cooperatives in the area, [but] they cast that money over to us, which was a real affirmation of the quality of the work that we’d been doing and…the extent to which we were seen as a group genuinely responsive to the needs of the movement.” “I’d be lying to say that people are beating down our door to give us their investments,” he clarified with a chuckle. “But at the same time I can say that we do have a moderatelysized group of regular investors.” As a matter of fact, he thinks that this year they will be going “over the one million-dollar [mark] in loans.” TREC and its two affiliated projects – WindShare and SolarShare – have also had difficulty “getting people to put investment up front,” Lipp told me, largely because they are trying to provide renewable energy sources in

TRENDS an industry that has been “dominated for the last hundred years by large centralized entities.” “We’re transitioning to a decentralized electricity system, but there are lots of people who don’t understand what we are doing,” she said. “On the whole,” she began explaining, “it is [a group of] – environmentallyconscious, middle-class individuals interested in finding ways to address climate change and other issues, but also lo oking for investment

Cooperative Development Initiative (CDI) program will not adversely affect them yet since they have one more year in their three-year grant contract. But Lipp told me that it will definitely be a painful blow going forward for new cooperatives. Corcoran also agreed. “Getting grants is almost impossible from federal foundations….and getting capital, as well, it’s a challenge because of its nature in cooperatives, which is instrumental and not what is driving the business.”

We’re trying to change the mentality of what we really need to be investing in: that is, looking outside of individual returns and thinking genuiely in investing in society at large opportunities that align with their values.” Unfor tunately, that is precisely the reason why it is difficult coming by private investment. People “turn the lights on but they don’t really want to engage with how it is that we keep those lights on and the impact that keeping those lights on has on the environment as well as on other social aspect s,” Lipp explained. “So the challenge is navigating the system that is geared towards large players and being able to make that s y stem wor k for essentially small players who are doing smaller projects.” Luckily, there are programs in Ontario such as the Green-Energy Act, a FeedIn Tariff (FIT) program, and the Community Energ y Par tnership Program, all of which “essentially provide the framework…to apply and become a generator and feed into the gr id as long as you’re given a contract,” Lipp reassured me. For TREC in particular, the fact that the Federal Government is ending the

She continued: “We’ve long argued that there is a need for a national coop development fund on the order of $20 million or bigger.” The CWCF currently offers a small fund that people can use to start their own coops. In talking with all three, it became apparent that the biggest obstacle to the cooperative movement had to do with funding. It was agreed that because the work that cooperatives do is in many ways innovative, focused mostly on social advantages rather than on individual profits, not many “seasoned investors” are interested in offering their dollars. Nevertheless, Lipp assured me that as viable alternatives to traditional capitalist economic models go, cooperatives were certainly on the list since they “have been around for the last 200 years.” Indeed, in Italy, the cooperative movement had its origins in the 1850s, and flourished until the end of the Second World War, when Mussolini’s

brutal fascism decimated “its strong cooperative and labour movements,” Logue’s essay reads. But this did not end the movement. And neither did the CIA money that went into destabilizing the Left-wing government in Emilia-Romagna who, in spite of those Machiavellian A mer ican effor t s, managed to “encourage employee ownership, consumer co operatives, and agricultural cooperatives, [as well as] the development of Cooperative Institutions for all small businesses.” Although we no longer find any blatant suppression towards cooperative and labour movements, governments in the United States and in Canada have kept hush on funding them. As mentioned above, the Canadian Federals are currently cutting the funds fuelling the Cooperative Development Initiative, but even long before this Conservative noose on the country, the Liberals weren’t exactly paving crossroads. “We actually spent ten years starting this organization,” Corcoran told me, because they “had next to nothing, like $30,000 or $40,000-a-year budget. We were about to give up when we obtained our funds,” she said, laughing with disbelief. “We hadn’t obtained the capital funds after years of lobbying the Liberals – we were just going to throw in the towel because we were exhausted and tired. But luckily that came in just in time… in 2001.” This was used to start their Capital Fund for starting co-ops, which they are still operating. They had come close to obtaining the full funds, she said, “but the liberals didn’t act fast enough, then the government became a minority Conservative one and then of course they wouldn’t do it.” Actually, they’ve sent money to Quebec, but she told me that that was money that was supposed to go to the CWCF and to Ontario, but because we lack the “political capital…and people

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photography : dan campo

prepared to stand up and lobby and go to the streets,” she opines, Ontario was overlooked. Government support is essential to the cooperative movement’s progress. In Italy, for example, the movement is enshrined under Article 45 of the 1947 Italian Constitution and the Basevi Law of 1947, which, Logue explains, “provided co-ops with special tax treatment to encourage their selfcapitalization by creating the concept of ‘indivisible reserves’ for the benefit of all (i.e., future generations of employees and the community).” But the most difficult barrier of all is the myth that corporate or individualfocused capitalism is the only feasible business method out there. “We do have a strong culture of

individualism and the mythology of the individual entrepreneur is ver y strong,” said Earle. “I don’t think that in 100 years all businesses will be cooperatives…I think of it more as a one-step-a-time process in the sense of supporting those cooperatives out there…as an option that is on the table and make sure that it will always be on the table for folks looking for new work opportunities.” Lipp also thought, like Corcoran told me at one point, that the cooperative model is indeed a viable alternative to capitalism. “The cooperative movement is an antidote to the capitalist model which is all about maximizing profits for the s h a re h o ld e r s,” s h e e x p l ai n e d enthusiastically. “This is about

ARBITRAGEMAGAZINE.CA Fall 2012

maximizing profits for the community and at the same time recognizing the s o c ial v alu e s t hat p e o ple are interested in pursuing. Ultimately, the biggest difference between a co-op and a corporate model….is the member vote: regardless of your investment, it is one member one vote – a democratic enterprise.” “Beyond that,” she continued, “you can use a co-op for any number of activities. We could be using a co-op instead of a corporate structure for banking, retail, cultural factors, the energy sector, because it’s a model that’s proven to be more in line with peoples values….It’s a way for people to get involved in the green energy sector as opposed to what’s been happening w ith some of the contentious issues around project

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development, w here foreign companies are coming in and, at the very local level, are setting projects and sometimes not respecting the p e o ple o n the gro u nd.” T hink pipelines! However, like Earle, she did not think that this was going to happen in our lifetime. “On the other hand…I think we’ve created a system where people just think they have to keep working harder and harder to make more and more money so that they can buy more things. I’m not sure we’re close to breaking that cycle. I’d like to say ‘yes,’ but I don’t think so. I do think m o r e p e o p l e a r e l o o k i n g fo r alternatives, but not on a massive scale. Also look at what’s being taught at schools and universities – the dominant capitalist and individualistic model…so how do you break that?” She was kind of right, and it depressed me a little bit to think so. But I disagreed with her opinion that it was not on a massive scale yet. It is precisely what movements like Occupy are trying to do, I thought. Perhaps the advent and proliferation of cooperatives is a mission that the Occupy movement could adopt as a way to put forth not only a protest against the current system, but also a specific proposition of what the adopted alternative should be. TO BE OR NOT TO BE (POLITICAL), THAT IS THE QUESTION The important thing to remember about the cooperative movement is that it is a post-partisan movement, able to stand on its own without having to take sides on the political spectrum. Members of cooperatives range from leftists to rightists. However, wherever the movement is aligned with the Left, its main objective w ill be to retain it s sovereignty and adherence to the International Cooperative Principles.

In many places in Latin America and Europe, such as in Emilia-Romagna, for instance, left-wing parties have already embraced the cooperative m o ve m e nt, “ w it h re a s o n a n d understandably, and in ways that I hope continue to happen,” said Earle.

about having community-based businesses where everyone has a chance to be owners and have certain amount of democratic input, and there isn’t necessarily a whole lot more political stuff that is injected into that.”

The world has already held the First and Second L atin Amer ican Conferences on Recovered Companies in 2005 and 2009, respectively. The conferences were held in Caracas, Venezuela – socialist ground under President Hugo Chavez, who addressed them both, declaring that “recovered factories are…an alternative to capitalism and the antithesis to the Free Trade Agreement of the Americas (FTAA)”. He also pledged a $5 million rotating fund to each country and promised to provide raw materials in exchange for hiring Venezuelan workers. There were over 200 workers from countries including Canada, Argentina, Paraguay, Bolivia, Mexico, Brazil, Venezuela, Turkey and Iraq, as well as leading activists from many companies like Mitsubishi, Vivex, etc., and leading trade unionists.

Lipp also didn’t think that as a political entity, cooperatives had much clout. “Political parties will pick up causes if they see that there’s an advantage to them as far as getting elected…But there’s a huge lack of understanding of what co-ops do,” she explained. “I think in rural communities they certainly understand them, but most Canadians live in cities and I think a lot of them don’t have a clue about cooperatives…So I can’t see them being politicized at this point.”

The point of the conferences was to establish an international network of cooperatives, particularly in Latin America, to support each other financially and otherwise, and also to establish the difference between Worker Cooperatives and Nationalized Factories Under worker Control. The former implies that although it is under worker control, the establishment will continue to operate based on Free-Market Rules, while the latter implies that the factory belongs not only to the workers but to society at large, and the management is therefore made with social interests at heart, usually by members that belong to Leftist Parties. And “while there certainly are co-ops that are more political and radical in addition to having strong business,” Earle told me, “there are others that aren’t so political and that are more

CONCLUSIONS: LET THE MOVEMENT GROW Cooperatives are a solution to the abusive and out-of-touch corporate pyramid that places a few at the top and the majority at the very bottom. The signs that people want a different economic system are becoming clearer every day, especially when the streets a r e f lo o d e d w it h t h e O cc u p y Movements across the United States and the world; in Canada, where students are protesting tuition hikes and satellite Occupy movements have also come together; in the Middle East, where people are revolting again st t y r ant s an d e co n o mic oppression; in Europe, where more and more people take to the streets to protest austerity measures and job layoffs; in Latin America, where a new 21st Century Socialism is sweeping the continent, keeping none of the repressive USSR methods and focusing instead on providing better standards of living for the poor majority. Yes, change is in the air– even in the United States, the powerhouse of traditional capitalism. “We just recently went to the U.S.

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Cooperative Conference in Boston,” Earle told me. “And it had the feel of something that is trending upward,” especially w ith more than 4 0 0 attendants, a huge percentage of which, Corcoran who was also there told me, “had found the movement through Occupy!” Additionally, the International Year of Cooperatives declared by the UN will definitely “support that upward trend,” said Earle. There will be another conference held in Hamilton in November. And remember, as Earle said, “the cooperative movement is a lot more developed than it gets credit for… there are some really interesting larger cooperative support organizations out there. They tend to be beneath the surface so that perhaps you don’t really notice they’re there, although they’re right under your noses.” But that’s changing. “The Evergreen Model in Cleveland has been a high-profile success; in California, in the Bay Area, there are a lot of interesting things going on,” said Earle. “Certainly there aren’t as many cooperatives as there are in Argentina or Italy, but it is an interesting first group of cooperatives… and it is one that is growing.” Cooperation and affiliation amongst cooperatives has also solidified through a world-wide federation where huge cooperatives across the world meet to talk about furthering the movement. In October of this year, a summit will be held in Quebec where representatives from Mondragon as well as Hazel Corcoran will attend. Applying to work in cooperatives is easy, provided you find one and that they have work available. “In Toronto there’s not a huge number – if you look at the CWCF website you can see a list of members which are most of the worker co-ops in Toronto. A nd you go and you put in an

application to any given one,” explained Corcoran. Some of these are the National Food Store, Big Carrot and Urbane Cyclist. Usually there is a small one-time fee members have to pay to be part of the cooperative, normally followed by a period of time where you are a “member-in-progress,” meaning you have to put in some time as a regular worker before you are accepted as a full member. If you are interested in renewable Energy, you can also look to affiliate yourself with TREC, WindShare or SolarShare. For instance, Lipp told me, “people can buy bonds of $1000 denominations and they earn a five percent return on that bond.” That is the product being sold by the co-op to raise money for the project. “As the generation of these projects are producing power, and the co-op gets paid for that power [through the FIT program], [they] use that revenue to pay back investors.” You can also pitch your own project to them. Lipp explained: “A group will already be down the way with their own project, and then they [can] come to us and say: ‘now we’re at the stage where we need help with our business plan or financial modeling or offering statement. We are signing up members and we’d like to use your [reference]…’ Co-ops usually originate from the community and for the most part people who have that idea want to be quite heavily involved. So we sort of get brought in on a periodic basis rather than us developing it from scratch.” For those who br ing their own renewable energy project to them, TREC offers “a number of tools…as far as checklists are concerned, and there are a number of resources through the Ontario Co-op Association that [they] will direct people to.”

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The Cooperative Business Model provides people with all the tools to be their own leaders and empowers the communities in which they are erected. The workers have all that is needed to run a profitable business, as proven time and time again. I think it was Nietzsche who spoke about finding that “great contempt” – those characteristics in man that make him worthy of contempt and which, if eradicated, would allow human beings to evolve. Well, it appears to me that the world has found that great contempt, not necessarily in man, but in the system that man perpetuates at the expense of the “99%”.

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