Global Passports and the Dilution of Citizenship | OPINIONS
Global Citizenship
3rd Quarter 2018
•
The Space Issue
To Mars and Beyond Freedom of Movement
The Commodification of Citizenship and the Ethics of Human Rights 01 9 7 7 2 5 1 794008
ISSN 2571-7944 Published Quarterly
Luxury Real Estate and the Rise of Private Islands
Thailand’s Growing Wealth Management Industry
Henley & Partners’ annual Global Residence and Citizenship Conference has become the world’s largest and most significant conference on investment migration. In celebration of the conference’s 12th successful year, we again expect well over 400 attendees, a multitude of business leaders, top-tier international service providers, and senior government officials who will share first-hand information on the latest developments in residence and citizenship planning. Register now using the promotion code ‘RQ3’ to secure your attendance by visiting henleyglobal.com/dubai2018
Antigua · Australia · Austria · Canada · Croatia · Cyprus · Dubai · Grenada · Hong Kong · Jersey · Latvia · Lebanon · Malaysia · Malta · Philippines
12th Global Residence and Citizenship Conference 4 – 6 November 2018 ∙ Dubai
Define your Future Portugal · Singapore · South Africa · South Korea · St. Kitts and Nevis · St. Lucia · Switzerland · Thailand · United Kingdom · Vietnam
Contents Upfront 5
From the Editor
7
Contributors
8
News and Updates
12 Events
Columns 16
Kochenov The Arbitrariness of Citizenship
17
Brexit Short-term Protection of Free Movement Rights
18
How to Structure Your International Financial Interests
19 Diogenes Human Rights and the State
34
20 On Trend Luxury Real Estate and the Rise of Private Islands
Opinions 24 The Commodification of Citizenship and the Ethics of Human Rights 26 Thailand’s Growing Wealth Management Industry 28 Global Warming and Climate Change: Reasons to Remain Hopeful 30 Claims Handling with Health Insurance 32 Politics and the Regulation of Space
Cover Story 34 To Mars and Beyond: Freedom of Movement
38 2 | Global Citizenship Review
Country Review 38 Thailand: Southeast Asia’s Kingdom of Wonder
Features 44 Interview Namira Salim 46 Pioneering Space Exploration: Five Individuals Leading the Pack 48 Inside the Refugee Camp Where Technology Improves Lives
46
52 The EB-5 Visa and the American Dream 54 The Common Reporting Standard and the Taxpayer’s Right to Privacy 56 World Design Capital Mexico City 2018 58 The Rise of Smart Cities 62 Cyberthreats in a Nutshell: You Are Not Prepared
56
64 Reigniting the Development of Supersonic Flight 66 Stem Cell Technology: Preserving Your Future Today
Global Life 68 Global Citizen Luca Rubinacci 72 Property 98 Wireless • Bangkok 74
66
Marco Polo Al Maha Desert Resort and Spa
76 Culinaria Paste • Bangkok 77 Medicus Susannah Rose 78 Books 80 Reflections Fridtjof Nansen
74
68 3 Quarter 2018 | 3 rd
The Home of Global Living We will find your next home and unique property in Malta and Cyprus
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UPFRONT
From the Editor
Crossing the Event Horizon
S
IMAGE: Henley & Partners
tephen Hawking, denied freedom of movement in the most extreme sense, traveled further into space than many of us ever will. One of his most profound legacies is the Bekenstein–Hawking formula, which, specifically with respect to black holes, considers the relationship between entropy and the event horizon. In general relativity, an event horizon is a region in space-time beyond which events cannot affect an outside observer. Until very recently in Earth’s history, you could say that an event horizon surrounded our planet, the actions of its denizens completely inconsequential to anyone, or anything, beyond our atmosphere. But for all we seek to measure, define, and set rules and boundaries for, humanity loves to test, break, and redefine these. From order to disorder, and known to unknown, we are entropy manifest. In this issue of the REVIEW, we embrace Hawking’s sentiment to “Look up at the stars and not down at your feet”, questioning the economic, political, ethical, and philosophical ramifications of not only global but universal citizenship. In his article ‘Politics and the Regulation of Space’, Dr. Marcello di Paola critically considers what it will mean as we increasingly explore, digitize, mine, and possibly even inhabit space, while Namira Salim discusses space as “the new frontier for peace” in an exclusive interview with the REVIEW. But we cannot live with our heads in, or beyond, the clouds; here on Earth, we review the shifting boundaries and spaces around us. Looking at the virtual realm, we shine a light on developments in cyber security, investigate trends and strategies in the relatively new concept of smart cities, and look into the face of a new kind of citizen — built, not born. As interesting and integral to our future as these topics are, we believe in balance, and offer some mental respite in the warm, lush setting of Thailand — as not just a holiday destination but an upcoming regional economic powerhouse. Thailand’s trajectory positions the Thailand Elite residence program as exemplary in its tailored offering to VIPs and discerning investors. I trust you will enjoy your journey through the spaces in these pages, beyond horizons spatial, temporal, virtual, and terrestrial. As a global citizen, embrace every opportunity to define your own boundaries.
Dr. Christian H. Kälin Editor in Chief
3rd Quarter 2018 | 5
UPFRONT
Global Citizenship
Editor in Chief Dr. Christian H. Kälin Managing Editor Janine Droux
Kamal Rahman UK Jim Rogers Singapore
Senior Editor Monwabisi Mhlophe
Correspondents Jennifer Lai China and North Asia
Publishing Designer Wade Hunkin
Dominic Volek Southeast Asia
Editorial Board Ghada Alatrash Canada Laura Austin US Prof. Dr. Philippe Forêt Kazakhstan/Switzerland Dr. Tony Gao China Nadine Goldfoot UK Prof. Dr. Christian Joppke Switzerland
Dua Yassin Middle East Polina Kuleshova Russia/CIS Mark Pihlens UK/Europe Andrew Taylor Africa
Subscribe Scan the QR code alongside, visit gc-review.com, or email subscriptions@gc-review.com Advertise If you are interested in advertising in the Global Citizenship Review, please write to adverts@gc-review.com Feedback Comments and suggestions, praise, and criticism are welcome. Please write to editor@gc-review.com Publication information The Global Citizenship Review (ISSN 2571-7944) is published quarterly by Ideos Publications Ltd., Zurich Switzerland © 2018 Ideos Publications Ltd. This periodical and the individual contributions contained in it are protected under copyright and applicable terms and conditions of the publisher.
Domenic Presutti North America Andrea St. Bernard Latin America/Caribbean
Global Citizenship
3rd Quarter 2018
•
The Space Issue
To Mars and Beyond Freedom of Movement
Dr. Parag Khanna Singapore Prof. Dr. Dimitry Kochenov Netherlands Dr. Robert W. Kuipers Switzerland Marnin J. Michaels Switzerland
6 | Global Citizenship Review
The Commodification of Citizenship and the Ethics of Human Rights 01 9 7 7 2 5 1 794008
ISSN 2571-7944 Published Quarterly
Luxury Real Estate and the Rise of Private Islands
Thailand’s Growing Wealth Management Industry
UPFRONT
Contributors 16
Prof. Dr. Dimitry Kochenov
Ratchadawan Loetsilathong
is Chair in EU Constitutional Law at
is Acting President of Thailand
University of Groningen and Chairman
Privilege Card Company
of the Investment Migration Council
38
Nadine Goldfoot
Paola De Leo
is Partner at Fragomen Worldwide UK
is Head of Group Philanthropy at Henley & Partners and Executive
17
24
48
Director, Andan Foundation, Switzerland
Prof. Hussein Abbass
Marie Ekberg Padilla
is Professor in the School of Engineer-
is Editor in Chief of EB5 Investors
ing and Information Technology at
Magazine
University of New South Wales
52
Benjamin Cavalli
Ceris Gardner
is Head of Private Banking Southeast
is Partner at Maurice Turnor Gardner
Asia and CEO Singapore at Credit
26
Suisse
54
Dr. Cathy Symington
Ruslan Yusufov
is Director of Nexus Point Consulting
is Director of Special Projects at Group-IB
62
28 Marie-NoĂŤlle Keijzer
Elisa Macchi
is Co-founder and CEO at WeForest
is Scientific Collaborator at Swiss Stem Cells Biotech SA
66
28 Agustin Lopez Carrasco
Valeria Rossella
is Head of Claim Services at Swiss
is Scientific Collaborator at Swiss Stem
Insurance Partners AG
Cells Biotech SA
66
30
32
Dr. Marcello di Paola
Veronica Albertini
is Postdoctoral Researcher at University
is Chief Scientific Officer at Swiss Stem
of Vienna and Research and Teaching
Cells Biotech SA
Fellow at LUISS University
66
3rd Quarter 2018 | 7
UPFRONT
News and Updates Further Delays Plague Launch of NASA Mega Telescope Despite being billed as “the highest priority project for NASA’s Science Mission Directorate and the largest international space science project in US history” by former Acting NASA Administrator Robert Lightfoot, the launch of the James Webb Space Telescope has been pushed back once again. Now scheduled to launch in May 2020, the completed telescope will weigh at least 6,000 kg and its primary mirror will have a diameter of over 6 m. To contextualize, the diameter of Hubble’s primary mirror is 2.4 m. Despite being widely anticipated, the project has garnered plenty of criticism for exceeding its original budget estimations of between USD 1 billion and USD 3.5 billion. Since development began over 20 years ago, at least USD 7.3 billion has been spent on the project, and this sum is expected to reach USD 9 billion. Once launched, it is believed the telescope will travel over 1.5 million km beyond Earth and will have the capability to “peer into the atmosphere of planets outside our solar system … and gather and reflect light from the early Universe”, making its successful development a truly phenomenal feat.
Earlier this year Amazon CEO Jeff Bezos’ Blue Origin completed the second round of testing of its reusable rocket, New Shepard, as part of the aerospace manufacturer’s attempt to achieve human space travel. The spacecraft is reported to have reached heights of 107 km before returning to its Texas, US, landing base, with Bezos stating that this was “the altitude we’ve been targeting for operations”. The entire test lasted roughly 10 minutes. No human crew was sent on this test, but Blue Origin has expressed a desire to start doing so later this year.
“A person’s dignity does not depend on them being a citizen, a migrant, or a refugee. Saving the life of someone fleeing war and poverty is an act of humanity” Pope Francis in commemoration of international World Refugee Day on 20 June
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IMAGES: Shutterstock
Jeff Bezos’ Blue Origin Tests Reusable Rocket Fit for Human Space Travel
UPFRONT
Malta Individual Investor Program Contributes 90% of Malta’s Budget Surplus Official data released by the Government of Malta reveals that, for July 2016 to July 2017, the Malta Individual Investor Program (MIIP) generated almost EUR 400 million in revenue, reflecting a value of 3.72% of the country’s GDP. This coincides with the government recording a budget surplus of almost EUR 440 million; it is believed that the MIIP accounts for 90% of these funds. Malta’s 2017 budget surplus is the highest of all EU countries and the fourth highest globally. This is the second consecutive year in which the country records a surplus.
Turkey Slashes Price for Citizenship-by-Investment Program by Staggering USD 700,000 Turkey has taken radical steps to preserve its citizenship-by-investment (CBI) program and boost its local property market by opting to restructure the requirement of a USD 1 million investment in real estate to qualify for Turkish citizenship. The requirement will now be an investment of USD 300,000, realizing a discount of a whopping USD 700,000. The price adjustment is a reflection of the country’s generally sluggish performance in the CBI program arena. The Turkish Statistical Institute reports that, in 2017, foreign nationals accounted for over 22,000 residential real estate purchases, with the most popular cities being Istanbul, Ankara, and Izmir. According to real estate platform GYODER, the leading buyers hail from Iraq (4,341) and Saudi Arabia (2,351), and Europe is represented by Russia (1,686), Germany (1,627), and the UK (1,465).
UAE Makes Big Moves to Attract Investors and Talented Individuals
IMAGES: Shutterstock
The UAE has announced a number of amendments pertaining to its investment and immigration regulations, which will see “entrepreneurs, investors, scientists, and other categories of individuals with exceptional talent” (such as in medical, technical, and research fields) becoming eligible to receive 10-year residence visas. Families of qualifying individuals can be included in these visas. In addition, the country announced that it will now allow complete (i.e. 100%) foreign ownership in local companies even outside designated free zones, widely acknowledged as an invitation to foreign investors to pursue business opportunities in the country.
IMAGES: Shutterstock
St. Kitts and Nevis Citizenship-by-Investment Funds Development of Leading Hotel Despite opening less than a year ago, Park Hyatt St. Kitts has already been listed as “among the 102 best new hotels in the world in 2018” according to Condé Nast Traveler. According to the popular travel magazine, Park Hyatt St. Kitts is “a straight shot of electric blue sea and sky. As far as first impressions go, it’s pretty spectacular. Before you even check in, you’ll feel instantly relaxed and in pure vacation mode”. The establishment was largely funded by the St. Kitts and Nevis citizenship-byinvestment program, providing a tangible reference of the benefit of such offerings.
3rd Quarter 2018 | 9
UPFRONT
Antigua and Barbuda Announces Changes to Citizenship-by-Investment Program The Antigua and Barbuda Citizenship-by-Investment Unit has announced that, until 31 October 2018, two applicants will be able to make the USD 400,000 real estate contribution jointly — i.e. each contributing USD 200,000, reducing the individual contribution by half — to qualify for citizenship of the twin-island nation. In addition, minor dependants will no longer be required to spend the previously stipulated five days in the country.
Japanese Filmmaker Wins Prestigious Palme d’Or at Cannes At a glittering, star-studded ceremony in Cannes, France, this year’s prestigious Palme d’Or award was presented to Hirokazu Kore-eda for his exemplary work on Shoplifters. The five-time Cannes-nominated independent filmmaker is the first Japanese national to receive the award in over 20 years, with Shoplifters being celebrated for “how intermeshed the performances were with directorial vision”, as Cannes jury president and acclaimed actress Cate Blanchett opined.
Growing Chinese Disinterest in Australia’s Significant Investor Visa The Chinese market’s growing disinterest in Australia’s Significant Investor Visa is having an extensive impact on the South Pacific country’s offering. Following the Australian government’s implementation of various regulations to address concerns of fraudulent activity, reports reveal a drop in applications between July 2017 and January 2018 to an average of only 13 a month, whereas in the financial year 2015/2016 an average of 46 applications were submitted each month, with Chinese applications once accounting for almost 90% of interest.
Orion Span’s Aurora Station, said to be space’s firstever hotel, will begin hosting guests in 2022. To reach the modular establishment, which covers a total area of 455 ft2, guests will have to travel on a 30-minute rocket flight. Reservation deposits for one of four suites are currently pegged at USD 80,000, and the cost of a 12-day itinerary begins at USD 9.5 million. To qualify for a stay at the hotel, interested guests will have to undergo health screening and participate in a three-month training program. Describing the experience of being on Aurora Station, CEO of Orion Span Frank Bunger says: “The premise of Aurora Station is for guests to live, feel, and breathe what it’s like to be an astronaut. That means 24/7 weightlessness and plenty of freezedried food.” The hotel will orbit once around Earth every 90 minutes at 322 km above the Earth’s surface.
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IMAGES: Shutterstock; Orion Span
Tech Company Orion Span is Developing Space’s First Hotel
IMAGES: Shutterstock; Orion Span
Gran Hotel Son Net — where luxury meets history Open all year for guests to enjoy an authentic escape and experience. The 31- bedroom hotel is also available for exclusive hire and offers privacy and elegance. Castillo Son Net s/n, 07194 Mallorca, Spain www.sonnet.es | sales@sonnet.es
UPFRONT
Events
24 June Inti Raymi Peru
For the 2018 edition of the American Institute of Architects’ annual conference, some of the world’s most forward-thinking architects, firms, and designers will descend onto the iconic city of New York to reflect on innovative architecture techniques and emerging design approaches. The three-day conference will offer informative seminars, interactive workshops, and an expo center, and will have as keynote speakers Ghanaian British architect Sir David Adjaye, one of Time magazine’s most influential people, and Sheela Søgaard, CEO of the highly regarded firm Bjarke Ingels Group.
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11–27 August Edinburgh International Book Festival UK The Edinburgh International Book Festival is one of the most dynamic of its kind in the world and is a delightful ode to the intellectual treat that is literature. In recent years, the festival has enjoyed inspiring growth and now features 900 events (attended by roughly 1,000 writers) expertly curated to appeal to diverse audiences. In its 35th year, the book festival continues to offer an engaging platform for the discussion of key global questions, topics, and events through robust conversations, informative lectures, insightful workshops, and creative performances. Some program themes for this year include Freedom and Equality, Identity Parades, Our Planet and Us, and Politics for Change.
IMAGES: Shutterstock; Edinburgh International Book Festival
21–23 June AIA Conference on Architecture US
On 24 June each year, the southeastern Peruvian city of Cusco celebrates the Inca Festival of the Sun known as Inti Raymi. During this religious ceremony, the Inca honor the god Inti (Quechua for ‘sun’), one of the most respected deities in Inca religion. Inti is believed to be the creator of the universe and to have fathered the first Incas. The modern-day version of the festivities sees the re-enactment of traditional ceremonies such as a procession of ancient mummies, the reading of the coca leaf, and the sacrifice of llamas, much to the delight of local tribespeople. The commemoration remains a jubilant and colorful display of the connection between humans and deities and is regularly attended by travelers from far and wide. The Inca empire, also known as Tahuantinsuyo, is considered to be the largest and oldest kingdom in South America; its origins date back to 1200 AD.
12–24 August Les Azuriales Opera France
IMAGES: Shutterstock
IMAGES: Shutterstock; Edinburgh International Book Festival
UPFRONT
Les Azuriales Opera is a French-based organization that focuses on nurturing artists who are in the early stages of their opera careers, which means attendees of its annual, eponymous event have the opportunity to enjoy front-row seating at theatrical performances by some of the world’s preeminent emerging talent of this sophisticated musical genre. This year’s event will begin with the 17th Les Azuriales International Singing Competition — to be held at the Citadelle-Saint-Elme in Villefranchesur-Mer on the French Riviera — and will conclude with the staging of the 1945 opera Les Mamelles de Tirésias as directed by Alessandro Talevi.
1–2 September International Autojumble UK The serene English town of Beaulieu will once again play host to the annual International Autojumble event, widely regarded as one of the largest outdoor automobile sale events keenly catering to vintage and classic enthusiasts. Hosted on the immaculate grounds of the National Motor Museum, International Autojumble attracts guests from across Europe and boasts over 2,000 stands proudly displaying an array of hard-to-find motoring parts, accessories, tools, literature, and apparel. Earlier in 2018 the UK Heritage Awards ranked International Autojumble first place in the category of Best Event/Exhibition.
6–8 September Carmen UAE Located in the heart of Dubai’s cultural district, the Dubai Opera, a glamorous and fitting home for the performing arts in this bustling city, will bring to life one of the world’s best-loved operas this September: Carmen. This opera by acclaimed French composer Georges Bizet tells a mesmerizing story characterized by passion, drama, and exquisite costumes. A breathtaking set and a stunning orchestra come together in spectacular fashion to lift the magnificence of this famed piece. Carmen, which debuted in 1875, is considered to be a classic demonstration of opéra-comique, a French style of opera in which spoken dialog is intertwined with musical numbers.
3rd Quarter 2018 | 13
UPFRONT
29 June–8 July Annual Knysna Oyster Festival South Africa
5–20 July Montreux Jazz Festival Switzerland
Event Review
2–6 August Edinburgh Fringe Festival UK
4–6 November 12th Global Residence and Citizenship Conference UAE
E
arlier this year, Henley & Partners, with the participation of the Government of Malta, hosted an exclusive event in London to celebrate the remarkable success of the Malta Individual Investor Program (MIIP), a leading citizenship-byinvestment (CBI) program. The dignified and sophisticated event was attended by the Hon. Prime Minister of Malta Dr. Joseph Muscat, and world-renowned Maltese tenor and Cultural Ambassador of Malta Joseph
14 | Global Citizenship Review
Calleja provided the evening’s transcendent entertainment. Boasting a magnificent interior and exquisite art and architecture, Drapers’ Hall a truly impeccable backdrop against which to reflect on and celebrate the growth of the MIIP, which the Government of Malta has worked diligently to establish as the preeminent CBI program in the world. The Prime Minister delivered the key address of the evening, titled ‘Malta: A Vision Realized’, in which he highlighted how
IMAGES: Shutterstock; Henley & Partners
A Classical Evening with Joseph Calleja
Above: Malta’s Joseph Calleja performed on the evening, much to the delight of invited guests. Calleja is a renowned tenor and a highly regarded performer
IMAGES: Henley & Partners
IMAGES: Shutterstock; Henley & Partners
UPFRONT
the island nation has successfully positioned itself as a secure country in which to invest thanks to its advanced tax regime, transformative technological developments, and thriving economy. Dominique Bolli, Head of Government Advisory at Henley & Partners — which was contracted by the Government of Malta in 2014 to design and implement the MIIP — spoke on behalf of the firm and congratulated the country for achieving the program’s distinguished reputation. The MIIP is widely considered the industry benchmark with regard to due diligence, setting the standard for the stringent vetting of applicants. The MIIP is also the only CBI program to be endorsed by the EU Commission, a reflection of its credibility and industry leadership. Attendees of the event included government ambassadors and representatives, leading financial advisors and intermediaries, reputable academics, and select media. The performance by Calleja was certainly the highlight of the evening, reminding the audience of Calleja’s worthy comparison to Italian opera pioneers such as Enrico Caruso and Beniamino Gigli, the latter of whom is regarded as one of the most prolific tenors of his time.
Top: The event was attended by the Hon. Prime Minister of Malta Dr. Joseph Muscat and his wife, Michelle Muscat. They are pictured here with Joseph Calleja Above: The London venue for the evening, Drapers’ Hall, is steeped in history, with its construction dating back to the early 1500s when it was once part of the Augustinian Priory
3rd Quarter 2018 | 15
COLUMNS
Kochenov
The Arbitrariness of Citizenship Prof. Dr. Dimitry Kochenov, Chair in EU Constitutional Law, University of Groningen Netherlands; Chairman, Investment Migration Council, Switzerland beyond the arbitrariness of the legal fiction lying at its base. This process had two key facets, which were profoundly interrelated. It consisted, firstly, of the extension of the rights formerly reserved for citizens only to those who would not have had the formal legal status and ensured that all those in possession of the formal legal status could in fact enjoy citizenship rights, even women, minorities, and naturalized citizens. As a consequence, the boundary line between citizenship rights and human rights came to be rethought under pressure, inter alia, from the rise of human rights ideology and the evolution of the basic relationship between the authority and the population under its control, citizens and non-citizens included. Secondly, we can witness a gradual extension of the status — either de jure or de facto — to groups of those who had been randomly excluded previously. Such extension happened in the courts of law and via legislative developments. Most importantly, the revision of nationality laws to make these more inclusive and tolerant of multiple nationalities has facilitated a move away from the previous paradigm of exclusive allegiances. The consequence of this quest against arbitrariness leaping into the territory of citizenship, which is, in itself, an arch-example of arbitrariness in action, is the unavoidable thinning of citizenship as a legal status associated with an entitlement to rights as well as the radical decrease in citizenship duties. Endnote 1 The formal level of the authority does not matter, usually: R Bauböck, ‘Global Justice, Freedom of Movement and Democratic Citizenship’ (2009) 51 Archives européennes de sociologie 1 The full paper on ‘The Citizenship of Personal Circumstances in Europe’, EUI Department of Law Research Paper No. 2017/07, is available at cadmus.eui.eu/bitstream/handle/1814/46005/ LAW_2017_07.pdf?sequence=1
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IMAGE: Supplied
C
itizenship is the chalk line between the ‘outs’ and the ‘ins’. Having asked about one’s citizenship, we are usually clear about whether that person counts in full in the eyes of our law. It is thus unavoidable and fundamental that citizenship, above all, is a legal status. The necessarily arbitrary nature of how the line between citizens and non-citizens is drawn in any society has not escaped the attention of commentators. Citizenship, as a legal status of attachment to public authority,1 is always distributed uniquely by the authority itself. It does not depend on sentiments or feeling of the citizenry, of course. As a Dutchman who has spent a lot of time in the US, I can perceive myself as an ideal American; however, this fact has no bearing on the legal status I hold. Remove the formal requirement of equality before the law and it would be difficult, to say the least, to characterize the resulting legal arrangement as a citizenship arrangement. Citizenship premised on, precisely, the creation of a legal abstraction from actual people with all the differences that being a person implies will fail to emerge if any other differences between the citizens, beyond the formal legal status they hold, becomes an indispensable precondition informing their duties and entitlements. That the legal fiction so necessary for the survival of any modern constitutional system is essentially arbitrary in nature is exceedingly difficult to ignore in a world in which the whole ethos of the law is about asking for good reasons behind this or that element of the legal reality proclaimed by the powers that be. Indeed, constant questioning of authority’s mantras is what reinforces modern democracy and, at the level of the law, makes the Rule of Law possible. Consequently, and most logically too, as we look back, the key trend in citizenship evolution over the past decades has been to underplay citizenship’s former glory by reaching
Brexit
Short-term Protection of Free Movement Rights Nadine Goldfoot, Partner, Fragomen Worldwide, UK
I
IMAGES: Supplied; Shutterstock
IMAGE: Supplied
COLUMNS
n March, the European Commission published the people to be able to use it as access to the UK when agreement reached by the EU’s chief negotiator and otherwise we would not be granting them access.” a the UK’s Brexit Secretary that free movement rights The scope of the review is not fully known but the investor will continue during the Brexit transition period, i.e. scheme has already seen significant tightening of regulatory 29 March 2019 to 31 December 2020. This concession is regimes around it. As is commonly known, applicants must in line with a recent UK Home Office proposal and gives of course now open UK bank accounts prior to applying. affected foreign nationals confirmation of their rights and New civil powers also came into force on 31 January enabling more time to plan for a post-Brexit strategy. the High Court to grant an Unexplained Wealth Order The UK and the EU have not yet reached agreement (UWO) on satisfaction of a number of tests. It is effectively on the Northern Ireland border. Negotiators from both an investigative tool. parties agree that Northern Ireland should remain in the A UWO requires a person who is reasonably suspected customs union as an emergency fallback solution if no of involvement in, or of being connected to a person involved alternative solution can be found. in, serious crime to explain the nature This confirms the commitment of and extent of their interest in A UWO made in the UK to avoiding a hard border, particular property, and to explain including any physical infrastructure how the property was obtained, relation to a non-EEA PEP or related checks and controls. where there are reasonable grounds would not require suspicion to suspect that the respondent’s UK Government to Review known and lawfully obtained income of serious criminality Tier 1 Investor would be insufficient to allow the On 27 March 2018, the Prime respondent to obtain the property. Minister gave oral evidence before The test for involvement with serious the Commons Liaison Committee following the Salisbury crime is by reference to Part 1 of the Serious Crime Act 2007. incident during which she was questioned on the grant of A UWO can also be applied to politicians or officials from Tier 1 Investor visas to about 700 Russian nationals outside the European Economic Area (EEA) or those between 2008 and 2015. Yvette Cooper MP asked if the associated with them i.e. politically exposed persons (PEPs). Home Office intended to do a retrospective source of A UWO made in relation to a non-EEA PEP money check on these granted applications. The Prime would not require suspicion of serious Minister did not promise such an investigation into these criminality. specific cases but advised that a more general review of the Tier 1 Investor scheme was underway by former Home Secretary Amber Rudd MP. The review goes beyond the specific Russia issue, and the Prime Minister stated: “It is right that we look generally to see whether this is a part of our visa regime that is being used properly or whether there are loopholes in it for
COLUMNS
Global Investor Migration Elsewhere in the News Even leaving aside reports of Russian-Israeli billionaire businessman, investor, and politician Roman Abramovich’s ongoing visa troubles, investor migration remains headline news. On Monday 5 March, the Organized Crime and Corruption Reporting Project and Transparency International launched a report on global investor migration programs. The report alleges that citizenship- and residenceby-investment schemes are vulnerable to abuse, discusses programs in a number of jurisdictions, and calls on the European Commission to act. The Commission is already active in this area and is examining investor migration programs across Europe (due to report late this year).
Nonetheless, the report serves as an important learning tool which the young and evolving industry takes very seriously. It is also a warning of the absolute importance of enhanced due diligence throughout the application process for those offering such programs or looking to move into this space. The report demonstrates that work is still to be done within the industry in order to achieve best practices, rigorous standards, and reputational integrity — improvements can of course always be made and constructive dialogue will remain key. Reference a parliament.uk/documents/commons-committees/liaison/ LC-27-03-18.pdf at Q6
How to
Structure Your International Financial Interests
C
lients normally have clear ideas about where they wish to invest their money, be it in stocks, shares, or other financial assets. What is less clear to them is how those assets should be held. Direct ownership is simple but affords little or no privacy and can expose the owner to various risks — from claims by creditors through to bureaucratic interference and local taxation. Instead, their financial assets are invariably owned by a company specifically formed for that purpose, often called a special purpose vehicle (or SPV). An SPV gives owners much more privacy, as popular jurisdictions do not yet maintain public registers of ultimate beneficial ownership. It is therefore easier for the investor to keep his or her name out of the public eye, reducing the chance of opportunistic legal claims or more sinister threats such as identity theft or kidnapping. The next question is: Where should the SPV be situated? You could choose from one of the zero-tax jurisdictions, such as the British Virgin Islands, Cayman Islands, or
Jersey, but these countries rarely have double tax treaties with other countries, which sometimes means a higher burden of tax at the source of the investment. The investor may also be penalized in his or her home jurisdiction for owning such a company. This is why we have seen a growth in ‘low-tax not notax’ jurisdictions such as Malta, Cyprus, and the Netherlands, which give preferential rates of tax and/or generous exemptions together with access to an extensive double tax treaty network. Once you have chosen the best jurisdiction, you need to decide how to hold the shares in your SPV. These could be held directly or be transferred into a trust. The main benefit of a trust is that it offers a far greater degree of privacy and asset protection because the investment is no longer owned by the investor but instead by trustees for the investor and his or her family. Structuring ownership for international investors is not easy, but where the underlying investments are valuable it can be a very worthwhile exercise.
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IMAGE: Supplied
James Quarmby, Partner and Head of Private Wealth, Stephenson Harwood LLP, UK
Diogenes
Human Rights and the State
I
IMAGE: Shutterstock
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n Sophocles’ Antigone, we hear the chorus of wise men say: “Many wonders there be, but naught more wondrous than man.” Indeed, human beings are marvelous creatures. Over the course of history, people have learned how to build comfortable houses, bridges to cross rivers safely, and ships to travel the world. Today, they construct miraculous machines that fly at breathtaking speeds and electronic devices that perform millions of complicated mathematical operations within a fraction of a second. Humans can even engineer molecules with the desired characteristics to help cure certain diseases. But of all the wonders we know, humankind itself remains the greatest enigma, and one particular question lingers: Why are humans, despite their incredible intelligence and capability, unable to conduct their lives in such a manner that no other being is threatened, exploited, or harmed? The greatest and most complicated systems created by man are not aircraft carriers, supercomputers, or nuclear power plants, but states. States are the ‘cages’ in which our human ancestors found themselves when they began to change and control their environment and flourish beyond smaller familial or tribal units. These cages are the epitome of civilization, and yet they are prisons — for the occupants cannot imagine life outside the cage, a life without hierarchy and laws. Every institution is organized on the basis of a hierarchical framework. Hierarchy provides order and structure and, within that, an illusion of security. Even so, hierarchy is inherently fragile and unstable, with perpetual tension existing between the social strata and the elements thereof. The state thrives on the unfolding of this tension in society; however, at the same time, it makes all individuals dependent on one another by assigning them ranks within a social structure. Within this system of ranking and classification, all elements have some scope, albeit some more and others less. Those individuals who are ranked further down dream of a higher ranking, of being closer to the top, with more
possibilities and more freedom. Those in higher positions, conversely, seek to preserve their own status and freedom, and may even deliberately thwart the upward progression of those below them. Analogous to the struggle within every state is the global struggle for survival in which every country is engaged. By seeking advantage over others, some go so far as to occupy foreign territories and absorb their resources. Thus, animosities and wars are inevitable and will never cease for as long as states function as entities struggling for survival, their citizens trapped within their cages. Therefore, it is reasonable to argue that the concept of human rights is particularly absurd. The first article of the Universal Declaration of Human Rights states: “All human beings are born free and equal in dignity and rights”. One could argue that they should be, but are they really if they are born into a hierarchical society? The hierarchy system is pervasive — it permeates religion, education, gender, and organizations the world over. One simply cannot argue that any two individuals of different nationality, cultural heritage, or economic status have equal rights. Capital punishment is just one example: In some countries, a woman who has extramarital relations with a man can lawfully be beheaded or stoned to death. In others, such a woman will not be punished at all. Here a question arises: Is a universally acceptable rule that could ensure that all people live together without hatred, fear, or exploitation conceivable? Yes, it is: Do not do to others what you don’t want done to you. Unfortunately, many institutions and states will not endorse this instruction. Reliant on the existence of its citizens, yet an entity for its own sake, the state must expect its citizens to obey and do what the state authorities view best for their survival. The state purports to foster and feed us; perhaps we dare not look beyond into the unknown.
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On Trend
According to research commissioned by UK-based home building company Keepmoat Homes, the average first-time home buyer today is seven years older than in 1960, when the average age of first purchases was 23.
Mumbai’s 27-storey Antilia building — owned by India’s richest person, Mukesh Ambani, Founder and Chairman of Reliance Industries Ltd. — is said to be the largest private residence in the world. The building is 550-feet high and has living space spanning 400,000 ft2.
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ver the past decade, as the world has attempted to come to terms with the rippling effects of the global financial crisis, the parameters of what defines luxury in terms of real estate have shifted constantly. Stability and security have become increasingly important, as 21st-century living means adapting to the uncertainty that regularly tinges daily life on the planet, as evidenced by the changing face of politics in the US, the UK, and beyond; the rising occurrence of terror
attacks from Paris to Surabaya; the chaos caused by climate change across the globe; and the constant disruptions to tried and tested ways of doing and being that rapidly changing technology brings, to name just a few examples. Nothing is as it was. The future is unpredictable. These two realities are altering the very nature of the luxury real estate market and how home ownership is perceived by high net worth individuals (HNWIs) and ultra high net worth individuals
Christies’ Luxury Defined 2018 report reveals that “the world’s 10 highest-priced home sales in 2017 were lower in aggregate sales volume than in 2016”.
“The Asia-Pacific region registered a record year for investment in income-producing real estate in 2017, with transaction volumes of USD 158 billion.” – Emerging Trends in Real Estate: The Global Outlook for 2018 report by PwC.
Above: Hong Kong is considered the best-performing luxury real estate market globally and boasts the highest price per square foot of any urban destination. In 2017 the citystate recorded the highest real estate sale for the year at USD 360 million
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Luxury Real Estate and the Rise of Private Islands
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Average Days on Market for USD 1m+ Homes Worldwide
in 2017. The charming Canadian city of Victoria — the ‘Garden City’ to those who are au fait with its temperate 220 days climate — was first on Luxury Defined’s 2017 list of 195 days 190 days “hottest” primary housing markets thanks to its rising luxury sales volumes and prices. In terms of the prime second home and city residential markets, 2017 saw two clear trends: a marked slowdown in China’s top performing cities juxtaposed by renewed growth in Europe after a decade of poor results, this according to Knight Frank’s Prime International Residential Index (PIRI) 100. A notable 11% of the locations in the 2016 2015 2014 2017 PIRI 100 posted returns in the double digits for 2017, and Above: In various luxury markets worldwide, selling a luxury the overall index increased by 2.1% compared with 1.4% home in 2017 took almost 30 fewer days than in 2016, reflecting in 2016. These developments are in alignment with the an increase in global wealth and interest (Source: Luxury growth experienced by the global economy in 2017 despite Defined 2018 ) heightened political tensions the world over. The bustling city of Guangzhou, also known as ‘the Los (UHNWIs) who invest in prime real estate today. The Angeles of China’, leads the 2017 PIRI 100 — with its prime very notion of what luxury is differs among these seemingly property prices soaring by over 27% — but is China’s sole homogeneous sectors of society. To buyers in Atlanta, entry in the top 10 in 2017. This is in stark contrast to 2016, luxury conjures up images of compact, tech-enabled when Beijing and Shanghai occupied second and third places, mansions rather than the sprawling country estates desired respectively, thereby securing the top three places for China. by buyers in Dublin. In Cape Town, buyers associate luxury This change of direction is attributed to the government’s with homes equipped with eco-friendly features, whereas clamping down on macro prudential regulations, which has in Monterrey, wealthy buyers covet vertical living for the served to restrict price inflation and deter speculative activity security and privacy luxury apartments provide. in China. Vibrant Cape Town rose to second place on the It is in keeping with this ethos of unpredictability that, PIRI 100 in 2017, with luxury residential property prices after a relatively unremarkable perfor rising by almost 20% owing to mance in the preceding year, sales of increasing demand and short supply in Sales of luxury luxury homes flourished in 2017 the ‘Mother City’, a pervasive trend in and grew by an astonishing 11% — the luxury real estate arena. Aspen took homes flourished in 2017 the best annual growth in three years. third place, with property prices in the This result was reported in Christie’s and grew by an astonishing upmarket US ski resort rising by 19% International Real Estate’s annual last year. 11% — the best annual white paper on the global luxury Lack of supply is a perennial residential housing market, Luxury conundrum that is made more chal growth in three years Defined 2018, published in May this leng ing by the ever-widening pool of year. CEO of Christie’s International potential luxury home buyers. Luxury Real Estate Dan Conn attributes this growth to “a stable Defined 2018 reports that the number of billionaires in global economy, a strong stock market, low interest rates, the world has burgeoned to 2,208 in 2018, representing and rising consumer confidence”. a combined net worth of USD 9.1 trillion — an increase Glistering Hong Kong topped Luxury Defined’s Luxury of a staggering 18% from the previous year. Index of the top 10 most luxurious cities for luxury real Recent times have finally seen affluent millennials estate for the second consecutive year in 2017, spurred by making their way into the luxury real estate market after two residential sales above USD 100 million and having years of notable absence, and they are now vying for prime the highest price per square foot of any urban area in the properties with baby boomers who are downsizing, world. In second place was the ever-chic New York, while bringing an unlikely tension to the market. Particularly London’s timeless elegance secured third place for the city at the entry level, a plethora of buyers from a wide range 254 days
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Top Countries for Primary and Second-Home Markets Leading Primary Home Markets
Leading Second-Home Markets
1. Victoria
1. Santa Fe
2. San Diego
2. Muskoka
3. Orange County
3. Sarasota
4. Washington
4. Sun Valley
5. Paris
5. Bahamas
Above: The US dominates the market for primary and second-home housing, with six out of 10 markets listed located in the country. For the third consecutive year, British Columbia’s Victoria is cited as the leading destination for the main home (Source: Luxury Defined 2018)
of contexts and with vastly different lifestyles find themselves competing for a limited number of luxury properties. This in turn has led to much quicker selling times for luxury homes, which on average sold in 190 days in 2017 as opposed to 220 days in 2016, according to Luxury Defined 2018. At the ultra-high end of the luxury property market, circumstances differ. Although trophy homes have certainly come to be valued as collectibles to be treasured, sales of trophy real estate declined in 2017, with just three properties being sold for over USD 100 million. In the previous year 10 were sold. The average of the 10 most expensive homes sold dropped to USD 1.24 billion in 2017 from USD 1.32 billion in 2016. The top sale in 2017 was, however, the most expensive residential transaction on record at USD 360 million in Hong Kong. The rise of the trophy home has ushered in the phenomenon of the star architect, or ‘starchitect’ — the sobriquet given to architects who have achieved worldwide renown for their design flair. Informed buyers are seeking out starchitect-designed homes, with the possession of an inhabitable work of art considered to be the ultimate accomplishment. According to Luxury Defined 2018, star architects have practically become a prerequisite for highend residential developments, and acquiring a Rafael Viñoly apartment, for example, is akin to possessing a Jasper Johns artwork or a classic Ferrari.
For certain UHNWIs, at the uppermost echelon of trophy real estate acquisitions is owning an island. Like rare gems, private islands are the quintessence of luxury. According to the Candy GPS Report: Island Real Estate in the Global Prime Sector, published by interior designers and property developers Candy & Candy in partnership with Deutsche Asset & Wealth Management and based on exclusive research from real estate firm Savills: “For the world’s wealthy, the pinnacle of achievement is to own what is exclusive and rare, so an island property goes hand-inhand with a luxury apartment in a prime city.” Yet the desire to own a private island is seldom, if ever, economically driven. Instead, these are purchases of passion. Some UHNWIs are in pursuit of blissful solitude; for others the purchase of a private island is an ecophilanthropic act to preserve an island at risk by restricting public access. As such, the Candy GPS Report outlines the two tiers of the private island market: 5% are “quality islands” that are close to the mainland, in politically stable regions, with development potential and permits in place, while the other 95% are “private islands” that do not meet these criteria and have limited potential for being inhabited. Globally there are variations in the real estate market for private islands. Central and North American islands are priced lower than those in Europe (of which there are hundreds of thousands), the Bahamas, and Oceanic countries. Southeast Asia has an abundance of islands,
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IMAGES: Shutterstock; iReviews
Above: According to Forbes’ 2018 edition of the World’s Billionaires, there are 2,208 billionaires in the world with a combined wealth of over USD 9 trillion, realizing an increase of 18% from 2017. Increasing wealth globally often plays out in the area of luxury real estate, with the market showing growth in recent months
but prices are high as they are sought after by hotel developers. The Candy GPS Report identifies further distinct regional market trends. Although sizable, the European private island market is restricted, and European buyers favor Caribbean and North American islands, particularly those conducive to winter vacationing. The Asian market, too, is small, partly because in most cases non-citizens may only purchase leaseholds. Asian buyers tend to purchase islands for generating income rather than for personal leisure. The modern phenomenon of the man-made private island is also making an impact on the market, the most famous example being The World in Dubai. Pioneering Dutch architect Koen Olthuis has developed an ingenious solution to the problem of scarcity of quality: inhabitable private islands based on the Dutch tradition of on-water properties. His inspired brainchild, Amillarah Private Islands, extends the concept of starchitecture to the private island market. Creative genius Olthuis, who was recently named one of the most influential people in the world in a Time magazine poll, designs selfsustainable, bespoke floating islands that are safe from rising sea levels and have a negligible impact on the environment. Not only are Olthuis’s islands pieces of art
Above: In the years to come, interest in private islands will be boosted by increasing personal wealth
one can live in, they also form new habitats for sea life. Recently, Christie’s International Real Estate announced an initiative to build these portable private islands around the world for high-end consumers looking for a unique residential opportunity. With the continuous ascendance of global citizenship, the rising number of billionaires each year, technological advances creating market opportunities in ways that were previously in the realm of fantasy, and the global economy continuing to prosper against the odds, the next decade seems destined to be a prolific one for luxury real estate and private islands in particular.
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The Commodification of Citizenship and the Ethics of Human Rights
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magine it is 2025. ‘Citizens for Sale’ is an online shop that sells robots that have been granted citizenship by a particular country. The old trick of marrying a citizen in order to obtain residence in a country has become outdated. Citizens for Sale’s success is based on a business model that allows humans to buy robots so that the owners become citizens of the robot’s country of citizenship, automatically affording them all the benefits associated with the citizenship. Even if the robot’s owner does not wish to reside in the new country, his or her citizen robot avatar can do so on his or her behalf. Taking this thought a step further: The robot can act on its owner’s behalf by attending board meetings, for example, to connect the owner to the board remotely and even make financial decisions autonomously, as long as these decisions do not violate the robot’s delegated privileges. This would prove beneficial for a highly influential businessman or businesswoman with a range of business interests in multiple countries, who could conveniently and comfortably manage his or her robot (or robots) from his or her home office. Before disregarding the above scenario and labeling it juvenile science fiction, it is important to consider a few facts. In October 2017, the Kingdom of Saudi Arabia granted a robot named Sophia citizenship. A few weeks after that announcement, an artificial intelligence (AI) ‘boy’ named Shibuya Mirai became the first machine to be granted residence in central Tokyo. Shibuya Mirai is also the first AI to be officially genderized by a state (Sophia’s creators, Hanson Robotics, casually refer to the robot using the feminine ‘her’). Are these isolated incidents or are they the beginning of an era in which Citizens for Sale will become an actual business model for robotics? Before we get excited, let us discuss some of the principles that may or may not hinder this possibility. In most countries, the law defines a legal person, or simply per-
son, as being either natural (a human) or juridical (a corporation). For Sophia to be a globally recognized citizen, we need to amend the definition of a legal person to include not only natural and juridical but also robot. Only then can a robot be recognized as a legal person in most countries, and only then can the concept of conferring citizenship on robots begin to be plausible. The EU is in fact exploring electronic personhood to ensure that robots are accountable for their actions. However, where does this lead us as a society? A legal person is defined by law to make persons unambiguously accountable for their actions. The board of directors in a corporation is the legal entity responsible for the corporation’s actions. The board of directors comprises humans. A human is eligible for punishment by serving a jail term or paying a mulct. Isolation and being in a jail induce psychological distress, resulting in a form of pain. A mulct reduces the resources available to a human, exerting financial or resource pressures that prompt psychological distress. Societies typically rely on psychological pain, through jail terms or mulcts, for punishment rather than inflicting physical pain. Exerting this form of psychological distress seems to be regarded, by the law, as more humane and a fair consequence; after all, it is the human’s decisionmaking mental processes that caused the individual to act inappropriately, thus deserving castigation. Will a jail term for Sophia cause Sophia pain? What does jail even mean for Shibuya Mirai when this robot has no physical body and lives only in cyberspace? Even if machines develop emotions, will these afford them a pain experience that humans deem sufficient? What, even, is machine pain and how can it deter a machine from acting inappropriately? What would be an alternative form of consequences that would make it meaningful to punish a machine and, therefore, hold it accountable for
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Prof. Hussein Abbass, School of Engineering and Information Technology, University of New South Wales, Australia
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OPINIONS
its actions? Outside science fiction, these are complex ethical, moral, and technological questions with, at present, only embryonic answers. Ultimately, humanity today has no meaningful mechanism for holding a machine accountable. So, how can we navigate this reality and confer citizenship on a machine that has no ability to be accountable for its actions, as in the case of Sophia and Shibuya Mirai? Citizens for Sale uses an innovative business model in that John can be held accountable for the actions of the robot citizens he purchases. John carries responsibility on behalf of his robots. If these robots are truly smart, trustworthy, and reliable, they will naturally and autonomously act in John’s best interest. In the event that Citizens for Sale can certify the trustworthiness of these robots, would society deem this sufficient cause for John to accept the risk of being accountable for his robots’ actions? In this scenario, there are still at least three challenges. Firstly, citizenship is a decision of the state. The honorable concept of citizenship cannot be transferred, inherited, or sold by a human. A state may well legislate the conferral of citizenship to the sons and daughters of a citizen, but the actual citizen does not have the legal remit to do so. For a human, citizenship is a privilege. Once the privilege is granted, humans have access to rights as determined under the auspices of the state. By deduction, Sophia does not have the right to transfer her citizenship to John. The second challenge is whether accountability is transferable. In principle, parents may be held accountable for the actions of their children if these actions are due to negligence on the parents’ part. However, not every mistake a child commits will result in the automatic transfer of accountability to the parents. The question is, in the case of robots, under which conditions should the owner be held accountable? Additionally, under which conditions will we forgive the robot for its transgression if the deed has nothing to do with the owner or manufacturer but rather the outcome of exposure to inappropriate habits and the result of undesired learned behavior? The cost of robots’ actions will affect humans directly and/or indirectly, but how much of our fundamental human rights are we, humans, willing to forego in order to pardon robots for their misdeeds? The third challenge is related to ethics and moral values. Those smart robots that will act in John’s best interest are loyal to John. But what happens when John’s perceived best interest could be achieved unethically or
could violate the moral values of the society in which the robots are situated? For these robots to be ethically and morally compliant, we — humans, that is — need to agree unequivocally on the rules that the robots must abide by in the determination of acting ethically. Unfortunately, the challenge here is not a technological one alone. To date, humans have failed to articulate clearly and objectively what these ethical boundaries are. This may be because these ideals are very much context-dependent, hence it is not possible to enumerate all of them, or human diversity implies that universal consensus is impractical. While most logical human beings would deem the conferral of citizenship on Sophia as a trivial media exercise, it is difficult to deny that the principle is already on the market, necessitating the application of concerted intellectual engagement. Even if it is a media stunt, using the honorable concept of citizenship transforms it into a highly relatable commodity. So, how do we move forward? One option is to remain in fear and denial of the reality that we are moving toward, while another option is to start planning for it. Giving in to fear will slow us down, leaving us with little time to prepare for this technology-based reality-to-be. A comforting thought is that most of the challenges related to this new dispensation do not need to be addressed universally. Contextualizing the challenges can help us ready ourselves for this unfolding reality. More importantly, doing so will afford us a prospect of shaping it better. The research topic of trusted autonomy is an overarching one that looks into the AI technology needed to design ethical and moral robots, smooth the relationship between humans and robots, and develop certification and performance assurance of smart robots. Trusted autonomy aims to maintain human dignity and rights by unfolding the complexity of what makes something ‘right’, designing the right technology, and designing the technology right. If human rights are at risk, the least we can demand from manufacturers is assurance pertaining to the trustworthiness of these robots, with all of what the concept of trust entails. However, before we can demand that, we need to invest in identifying what is technologically achievable and what is not. Nevertheless, this leaves us with two questions: Who benefits most from — and, by implication, who should invest in ensuring the trustworthiness of — AI and smart autonomous systems?
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Thailand’s Growing Wealth Management Industry Benjamin Cavalli, Head Private Banking Southeast Asia and CEO Singapore, Credit Suisse, Singapore
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of steadily growing household wealth and an expanding pool of potential HNW and ultra HNW investors. The evolving regulatory environment and central bank policy, especially in managing a strong baht, have provided further impetus for the industry’s growth. Since 2007, the central bank has continued to relax exchange control regulations to add more balance to the country’s capital flows and allow Thai residents to invest abroad, which provides more alternatives for Thai investors in diversifying Steadily Increasing Wealth their investments. Household wealth trends in Thailand have largely mirWhile Thailand’s wealth management industry is still rored the country’s economic growth. According to the at a relatively early nascent stage compared to more mature Credit Suisse Research Institute’s Global Wealth Report markets in Asia, we have seen an increasing number of 2017, Thailand’s household wealth increased by 6.9% local and international banks, securities companies, and from 2016 to USD 434 billion in 2017, if measured in asset management firms offering an expanding range of local currency terms. Over the longer term, i.e. since investment instruments and wealth management products 2000, Thailand’s household wealth has risen rather rapacross asset classes, from equities to mutual funds, idly at an annual rate of 8.9%. As it is globally, growth derivatives, fixed income products, structured products, is fastest at the top wealth segments, which is likely to real estate funds, and private funds. For instance, according continue to drive private asset flows and investment to the latest statistics from Thailand’s Association of trends. The number of high net worth (HNW) individInvestment Migration Companies, the number of asset uals in Thailand with more management companies than USD 1 million in inoperating in Thailand has The wealth management industry vestable assets grew by doubled in the past 20 11% in 2016–2017, while years to over 20, while the in Thailand has developed rapidly the number of ultra HNW number of funds managed and vibrantly against this backdrop individuals with more than has increased more than USD 50 million and the of steadily growing household wealth eightfold to almost 1,500 number of billionaires this year. and an expanding pool of potential grew even faster at 21% In Thailand, private and 33%, respectively. banking services first HNW and ultra HNW investors emerged among local fiA Growing Wealth nancial institutions two Management Industry decades ago. The term is now loosely used in the finanThe wealth management industry in Thailand has cial industry in reference to a very broad range of services developed rapidly and vibrantly against this backdrop and clientele, ranging from mass affluent to HNW indi-
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hailand’s wealth management industry has been developing dynamically against a backdrop of steadily growing wealth in the country. According to the World Bank, the country became an upper-middle income economy in 2011. Over the past four decades, Thailand has made remarkable progress in social and economic development, moving from a low-income country to its current status in less than a generation.
total of more than USD 800 billion in assets for their regional clients. Credit Suisse launched its wealth management services in Thailand in 2016, setting up a client relationship coverage team through its local securities entity and targeting two key client segments: HNW individuals with more than USD 5 million in assets under management (AUM) and ultra HNW individuals with USD 50 million in AUM or USD 250 million in net wealth, who happen to be mostly first- or secondgeneration entrepreneurs with family-owned businesses. As a firm, we see a service gap in the market where such investors are increasingly demanding a more sophisticated approach in terms of structured asset allocation and access to a truly global platform with a comprehensive range of financial and investment solutions across geographies and asset classes. In our view, the wealth management industry in Thailand and the sophistication of investors therein are still in the early evolving stages, which calls on us to work closely with our clients and partners in the industry to educate and support clients gradually in moving away from a product-Âfocused investment approach to a deeper appreciation of a more balanced approach to investing — based on an advisory approach that takes a holistic view of client needs, objectives, and investment profiles — and help them better navigate increasingly volatile markets. That means building a diversified portfolio with exposure to different asset classes that can generate lower overall portfolio volatility and help smooth out overall returns.
IMAGE: Shutterstock
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OPINIONS
Wealth Outlook Bodes Well for the Industry viduals with varying levels of net worth or investable assets, from less than USD 100,000 to a very small numLooking ahead, the Credit Suisse Research Institute ber that cater to those with over USD 1 million. Howforecasts that global wealth will continue to grow at a ever, in reality, the needs similar pace to the last and sophistication of inhalf a decade, at 3.9%. vestors across such divergHowever, emerging econAcross Asia, global banks with ing wealth segments vary omies will outpace the long-established traditions in private significantly, and the serdeveloped world in terms vices and solutions rebanking remain the largest operators, of wealth growth, and quired to meet the needs Thailand will be one of of clients with, for inthem. With this sizeable with the top three managing a total stance, USD 10 million in and growing pool of of more than USD 800 billion in investable assets are vastly HNW individuals and uldifferent from those for tra HNW entrepreneurs assets for their regional clients clients with USD 250,000 in Thailand, the continued in investable assets. expansion of the domestic Across Asia, global banks with long-established and regional financial markets will open up further traditions in private banking remain the largest operators, opportunities for business growth and investor flows with the top three, including Credit Suisse, managing a for entrepreneurs and corporates.
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OPINIONS
Global Warming and Climate Change: Reasons to Remain Hopeful Dr. Cathy Symington, Director, Nexus Point Consulting, Australia Marie-Noëlle Keijzer, Co-founder and CEO, WeForest, Belgium
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living things with which we share our environment and on which we are 100% dependent: the worsening of wildfires in Europe and the US; the water shortages facing the residents of Cape Town and across California; glacial melting, flooding and drought; salt-water inundation of low-lying coastal areas and islands in the Pacific, Caribbean, and Indian Oceans; the increasing rate and intensity of storms, heat waves, and extreme cold; food/water/ environmental insecurity; and growing social unrest.d While relating to these consequences as reasons to be hopeful seems counterintuitive, what will give us the best opportunity to step through these dangers and grasp them as opportunities starts with courage to face the facts and their impact, and — with hopeful determination — get into action. To be effective, our global suite of action plans will require a combination of mitigation (reducing CO2 and other greenhouse gas emissions and enhancing carbon sinks) and adaptation (learning and developing capacities to live in the changed environment)e outcomes, in synergy with the UN’s Sustainable Development Goals (SDGs).f NASA’s
Above: Captured in these images are sea ice extent (left) and sea ice concentration levels (right) in the Arctic region as at 25 June 2018. The orange line indicates the average level for both factors as recorded for between 1981 and 2010 (Source: National Snow and Ice Data Center, June 2018)
IMAGES: National Snow and Ice Data Center
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t is really not out of place to describe our situation regarding global warming and climate change as a crisis. This crisis is not just of greenhouse gas levels or the environmental, social, and/or economic impacts thereof, but it is also of the human response — our ability to tune out. Given the scope and reach of the impacts of global warming and climate change, these are areas we cannot afford to stay tuned out from, which begs the question: What does it take to stay engaged when so much of what we are told is disheartening? Consider that it takes not just clear knowledge and communication of the facts, not just a good, solid, well-backed action plan, but also an equally good, solid dose of courage and hope.a Fortunately, crises do not consist purely of danger. They also present opportunity — for ingenuity and creative practicality, and for bringing forth heroism and the best of the human spirit. With the science so clearly pointing toward humanity and our fossil fuel burning and deforestation activities as the villains in this crisis,b we have now the opportunity to be the heroes in bringing forth its resolution. Before then, however, we must first be accountable for the facts of the situation. As such, here is a quick snapshot of the current status of global warming and climate change. As of April 2018, atmospheric CO2 levels are currently at 407 ppm, having escalated from 275 ppm pre the Industrial Revolution (+47%) and in stark contrast with the previous 400,000 years when CO2 levels never cycled higher than 300 ppm. Global temperatures are +0.9° C compared to the 1951–1980 average (+6° C in the Arctic), with 17 of the 18 warmest years in the last 136 years occurring since 2001. Arctic ice cover is reducing by 13.2% each decade, ice sheets of Antarctica and Greenland are diminishing by 127 GT and 286 GT respectively each year, and sea levels are increasing by 3.2 mm annually (up 88+/4 mm since 1993) from both melting ice and sea expansion due to increased temperature.c As alarming as these numbers are, the data rarely grabs and holds our attention, nor does it sustain a call to action. Rather, it is their consequences for the people, places, and
IMAGES: National Snow and Ice Data Center
OPINIONS
Sea Ice Levels in the Arctic
Million square km
8 7 6 5 4 2020
2015
2010
2005
2000
1995
1990
1985
1980
3
Year Above: Illustrated above is the Arctic sea ice extent as recorded in September each year since 1980 via satellite observations. In the last few years, sea ice levels in the region have been in constant decline, averaging a rate of 13.2% per decade, with the lowest extent to date recorded in 2012 (Source: NASA, June 2018)
Megacities Carbon Project — aiming to measure the greenhouse gas emissions from cities such that decision-makers will have access to the data to best assess the efficiency of their plans, policies, and implementation for mitigationg — is one such project. Taking leadership in India is one of its largest business houses, the Mahendra group, signing up to the full Paris Agreement because “pursuing environmental stability is the only way forward”.h Mid-ocean kelp farming provides a solution in the oceans, with kelp growing 30–60 times faster than land plants, sequestering carbon from the atmosphere, alleviating acidification of the oceans, and directly growing a food source while also enhancing fish production for human consumption.i On land, with over 17 million trees planted to date, are the triplebottom-line-focused and SDGgrounded reforestation projects of WeForest. Leveraged through empowering women and their communities to reclaim degraded land, resulting in the growth of the influence of women together with men in their
communities, developing business opportunities where these are often scarcej and women’s lifting themselves out of poverty,k this organization provides mitigation and adaptation solutions and partnerships to local and global communities alike. The healthily skeptical voice asks: “Are we really gaining ground in our efforts to deal with climate change and global warming? Do we really have reasons to be hopeful?” In short, yes. Businesses, governments, individuals, and communities worldwide are taking action. Live-tracking of progress towards the UN SDGs is available through Environment Live.l But widely acknowledged is that the level of action presently being taken is nowhere near enough.m, n So, what do we do? It’s simple. Be a hero. Keep courageously facing and demanding the facts. Keep taking action. Plant and sustain a tree — it’s one of the cheapest, easiest, and most accessible actions that is both mitigative and adaptive.o Trees are the only organisms that grow and remove atmospheric CO2 continually for life.p But above all, remain hopeful.
References a B Liao Forests: Reasons to Be Hopeful (Ideos Publications 2013) b climate.nasa.gov c Ibid. d Ibid. e Ibid. f un.org/sustainabledevelopment/ sustainable-development-goals/ g megacities.jpl.nasa.gov h UNFCC Global Climate Action Summit, 02 May 2018 i T Flannery Sunlight and Seaweed: An Argument for How To Feed, Power and Clean Up the World (The Text Publishing Company 2017) j unfccc.int/topics/gender/the-big-picture/ introduction-to-gender-and-climatechange k weforest.org l unenvironment.org/news-and-stories/ press-release/live-tracking-progresstowards-global-goals-now-possiblethanks m unfccc.int/news/climate-action-playscentral-role-in-achieving-the-sustainabledevelopment-goals n news.un.org/en/story/2017/07/561632un-report-urges-accelerated-effortsachieve-sustainable-development-goals o B Liao Forests: Reasons to Be Hopeful (Ideos Publications 2013) p abc.net.au/science/ articles/2014/01/16/3926055.htm
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OPINIONS
Claims Handling with Health Insurance
F
or the typical global citizen, obtaining the best possible international medical coverage is of paramount importance. To do so, clients should study the benefits, limits, and assistance provided with the purchase of a specific product, which helps individuals best prepare for when even the most unexpected possibility becomes reality. Truly, the last scenario anyone hopes to find themselves, or their loved ones, in is a life-threatening emergency without access to quality and comprehensive care. Despite the importance of having health insurance, as an insurance provider we have noticed that members are often not aware of how to use their coverage and, most importantly, they display much uncertainty regarding how to proceed properly through the claims handling process. Of some relief to clients is that procedures for submitting and approving claims are actually quite standardized among health insurance carriers globally, and it is possible to bear in mind some general tips that will mostly work.
If this is not possible, due to the member being in a life-threatening situation, the insurer has to be notified of the incident at the latest 48 hours after the event, either via the member’s relatives or the treating medical center. Generally, insurance companies will request a complete report supplemented with the patient’s medical records, the diagnosis of the condition, and the treatment and/or rehabilitation plan. Additionally, an estimate of the expenses should be provided in order to assess costs. In this regard, it is convenient to sign an authorization form giving express consent to the insurer to request
Treatments Needing Pre-authorization For procedures indicated by the insurer as needing preauthorization, it is very important to confirm authorization ahead of treatment in order to secure coverage. Otherwise, some companies reserve their right either not to cover the expenses or to deduct, as a penalty fee, a certain percentage of the cost. It is always advisable to contact your insurance company timeously or as soon as you know you will need such a treatment in order to have sufficient time to proceed with the necessary arrangements. This is in particular reference to pre-scheduled surgeries, ongoing treatments, and physiotherapy cycles or rehabilitation plans, for instance. In the case of emergencies, it is highly recommended that you contact the insurance company for assistance.
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IMAGES: Supplied; Shutterstock
Agustin Lopez Carrasco, Head of Claim Services, Swiss Insurance Partners AG, Switzerland
IMAGES: Supplied; Shutterstock
OPINIONS
medical information on behalf of a member in case the occasional consultations that do not respond to ongoing insurer needs any further details that the individual is treatment, an emergency, or a programmed surgery. not able to provide. Members should pay the expenses of treatment and claim With all this information, the insurance company these back from the insurance company. can assess coverage so that, if granted, and only if the To do this, members should provide the insurance medical center accepts their guarantee of payment, they company with all invoices and receipts of payment and can settle the expenses directly a diagnosis for each treatment. to the clinic or hospital. An If the diagnosis is not specified unfortunate, but possible, For procedures indicated by in the bill itself, then a report scenario is if a guarantee of drafted by the physician is necthe insurer as needing payment is not accepted by the essary. For pharmaceutical medical facility, in which case expenses, prescriptions and pre-authorization, it is very the member will have to receipts of payment need to be important to confirm such pay beforehand and request submitted. Lastly, a convereimbursement afterwards. As signed claim form authorization ahead of treatment niently the procedure would have been clearly displaying the member’s pre-authorized, this process bank details should be submitin order to secure coverage should not be complicated. ted to your insurer for transferring the reimbursement. Treatments Not Needing Pre-authorization The above, and relatively simple, steps are normally In the event that treatments do not need pre-authorization, adequate to ensure a swift claims handling process, the pay-and-claim procedure applies, which is the case a convenient relief for today’s time-constrained for most outpatient routine visits, laboratory tests, global citizen.
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OPINIONS
Politics and the Regulation of Space Dr. Marcello di Paola, Postdoctoral Researcher, Department of Philosophy, University of Vienna, Austria; Research and Teaching Fellow, LUISS University, Italy
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IMAGE: Supplied
T
he late comedian Bill Hicks used to express years, and this will set off a supernova of opportunities bewilderment at the fact that humanity was still and enterprises — all beyond our planet’s outer atmo divided into competing factions rather than united sphere. This process is also being powerfully propelled as a species exploring outer space. Comedians often ask by a growing need for internet access around the world too much of mankind, but apart from his sentiment being as more and more people connect to the cloud; this could a critique, Hicks was also voicing a desire — maybe a eventually deliver an archipelago of networked space dream that most of us have had as children — to be an satellites, some of which could be inhabitable, feeding astronaut: a desire to lift off, out of this world, and look cascades of data to users on Earth. Asteroid mining could at it from above, explore planets beyond human sight, and be another huge business. All in all, by the year 2040 the see whether, and what kind of, life could be lived that is space industry could reach USD 1.1 trillion, according to not terrestrial. reports by Morgan Stanley. It is The human environment is as most likely the case that we’ll large as our technologies make it. soon be visiting, exploring, Spaceflight will Beginning in isolated villages, we infrastructuring, digitizing, and presumably become increasingly learned of new continents thanks mining space, and using it in to compasses and boats, crossed various other ways — including cheaper in the next 20 years, the skies in planes, and hollowed inhabiting it. out much of the planet’s fossil Undoubtedly, the benefits to and this will set off a underground with our drills. We mankind of space travel, explor supernova of opportunities have organized ourselves in un ation, monitoring, data-gathering, precedentedly complex and commerce, and settling could be and enterprises — all beyond interconnected systems bound enormous, ranging from a our planet’s outer atmosphere together by oil and gas pipelines, possibly vertiginous increase in electrical wires, air travel, fiber knowledge to a possibly ver optic cables, satellite connections, tiginous increase in the availability and cyber links. And now that we live in the Anthropocene of otherworldly natural resources and stretching even to — this new epoch in which no earthly places, entities, the possibility of evolutionary change — if and when future forms, processes, or systems escape the reach and influence generations of Homo sapiens are born in space — and of of human activity — our technologies might enable us to inter-species interaction, if and when space-traveling realize our childhood dreams of flying through space and humans meet alien life. Our frequenting space has the visiting, or even settling on, other planets. potential to bend our evolutionary process both in space The world’s business and innovation leaders, including and on Earth and, possibly, the evolutionary process of our the likes of Jeff Bezos and Elon Musk, are investing heavily galaxy at large. As more and more of us begin working, in the development of new space technologies for the living, and establishing interests and enterprises in outer transportation of humans and cargo. Spaceflight will space, we’ll need to govern our ways of doing so and regulate presumably become increasingly cheaper in the next 20 our manifold new space activities.
IMAGE: Shutterstock
IMAGE: Supplied
OPINIONS
Today, the main legal document regarding space activities is the Treaty on the Principles Governing the Activities of States in Exploration and Use of Outer Space of 1967, which was signed by the US and the USSR in the midst of the Cold War (the UK was already a signatory). Such a document, whose main achievement was to stop the nuclear arms race from escalating to the moon, gives guidance on what states can and cannot do in space. Not only is this guidance already lacunose as it pertains to states, but the treaty also leaves largely open how the actions and interactions of actors other than states in space are to be regulated. Some of these actors are precisely those who are now driving research and innovation in space technologies. What are private companies allowed or not allowed to do in space? Can a company land on an asteroid, call it its own, mine it, and sell what it has extracted? Can companies send robots to other planets? And how should states from Earth regulate these businesses? enforces property rights? Are humans or organizations These are only some of the myriad questions that will who act and interact in space to be considered, and thus spring up once we make our way beyond the stratosphere. regulated, as private agents or as envoys of humankind? More considerations follow, but it should already be apparent Should the principles of preservation, conservation, and that the need for regulating space activities is urgent in order stewardship that are thought to be at the center of to capture more fully the benefits most environmental ethics and of new opportunities; to ensure politics on Earth also apply to that these benefits accrue to the non-terrestrial environments? The most likely scenario many and not just the few (be those Can we terraform other planets many and few on Earth or in or space elements, and what for the near future is that space); to maintain precaution in principles would inspire the businesses and innovators will the face of natural forces, entities, protocol for doing that? Should processes, and systems that we are we also institute ‘space reserves’ begin acting and interacting far from having fully understood; to insulate sections of space in space outside of a clear to avoid contamination or from humanization? pollution of terrestrial as well as The most likely scenario for the moral and legal framework non-terrestrial environments; and, near future is that businesses and most of all, to avoid transferring innovators will begin acting and our worst Hobbesian nightmares of anarchy, conflict, and interacting in space outside of a clear moral and legal colonization to cosmic levels. With virtually no blueprint to framework. Lack of regulation may be justified when research follow, humanity in space meets not only an unparalleled and development are in their infancy to allow innovation to and unprecedented set of opportunities but also formidable gain momentum unfettered, but regulation ought to be in challenges and responsibilities. place when technologies are ready to change our lives. How should we think of space, and human actions It is not too late to bring forethought, planning, and and interactions therein? Is space and all it contains the transparency to bear on space travel and activities. Our common heritage of humankind (despite the stunning first moves into space will set precedents of great consequence anthropocentrism implicit in this claim), or is it no-man’s for the future. The stakes are great: in dark scenarios, land? If it is the former, do we all own an equal bit of conflict and militarization might ensue, both in space and space? Is that bit of space an asset that could help us on Earth; but in bright scenarios, we may unite as a secure a mortgage here on Earth? More generally, how cosmopolitan species, as Hicks expected us to do, and enjoy is property acquired in space, and who administers and incredibly enriching cosmic experiences.
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COVER STORY
To Mars and Beyond: Freedom of Movement
W
e take for granted that certain human rights should be protected, such as the right to life, the right to freedom from abuse, and the right to freedom from oppression. But the right to freedom of movement is no less fundamental in order for life to flourish. This certainly places an interesting spin on the global citizenship debate, where the right to one’s freedom of movement (and that of one’s family) is sharply circumscribed by the accident of one’s birth. It also raises
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the question of how one feels about the notion of a boundary, be it natural, political, or otherwise. Does one relent to a boundary’s capacity to contain, or does one instead feel inspired by the idea that boundaries are fundamentally there to be breached? If your point of view is global citizenship, freedom of movement, and frictionless travel, the chances are good that, like the narrator of Robert Frost’s famous poem ‘Mending Wall’, you are more inclined toward
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Life, in a very fundamental sense, is movement. From the beating of the human heart to the currents of the ocean, if movement ceases, life stops
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COVER STORY
breaking down walls than building them up. The debate But there is one big border we are still only just beginning about global citizenship is primarily concerned with to wrap our heads around: that “majestical roof, fretted political borders, but it is worth remembering that with golden fire” referred to in Hamlet that rises daily historically our strongest borders have always been above our heads. It might seem premature to begin thinkgeographic. Examples of ing about space in terms of great frontiers that have been global (or even supra-global) If your point of view is global crossed are easy to list: the citizenship, but that is probaBering Strait, the Andes, the bly only because we have not citizenship, freedom of movement, Sahara Desert, and the kept well enough abreast of stormy Cabo das Tormentas current developments in space and frictionless travel, the chances (the Cape of Storms, near exploration. are good that, like the narrator modern-day Cape Town). In 1961, there was only one Since the advent of industriearthling who had ever been of Robert Frost’s famous poem al technology, however, these out of the Earth’s orbit. Today, ‘Mending Wall’, you are more barriers have become increasthe number of people who ingly easy to overcome for have gone above the Kármán inclined toward breaking down anybody with access to the line — the point, about 62 requisite transport. If a permiles above Earth, that marks walls than building them up son cannot cross any of those the beginning of space — is in hitherto insurmountable the hundreds and is set only frontiers today, it is due to political, economic, or to climb. With the growth of private space exploration other socio-structural factors as opposed to any funccompanies such as Elon Musk’s SpaceX, Richard Branson’s tional limit on the available technology. Virgin Galactic, and Jeff Bezos’s Blue Origin, it appears
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COVER STORY
that space tourism is very much a real prospect for the nottoo-distant future. Of course, beyond tourism comes the prospect of permanent space stations (which is tantamount to a kind of colonization), and beyond that lies the notimpossible idea of space citizenship. Here is where the debate becomes interesting. How long will it be before we are speaking about the first children born in space? The first space passports? The inevitable first rumbles of contestation about intergalactic property rights, taxes, space currency? These questions may seem far-fetched, but in fact they would be better categorized as far-sighted. If we do not consider these ideas in a serious manner today, we risk finding ourselves in a royal stew when the days of space citizenship are actually upon us.
So, what are the major considerations to prioritize in this pending quagmire of disparate access, population control, and rights to freedom of movement? How can we ensure some measure of equality and fairness for all global populations when it comes to space exploration and potential habitation? First of all, let us make no bones about the fact that space travel is not a cheap endeavor. Even Elon Musk, who envisions transatlantic commute times of under one hour for the masses, will have to concede that the price of rocket fuel alone makes the prospect of egalitarian space access a far-flung reality for now. But in the future, who knows? Will it be that only the very richest will have the opportunity to travel, holiday, and live in space? If
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IMAGE: ORed Huber/Orlando Sentinel/TNS
Above: Jeff Bezos’ Blue Origin is well in the process of testing the successful travel of reusable rockets to space. The company aims to complete a third round of testing on its New Shepard rocket later this year, which it aims to send into space with a full human crew for the first time ever
IMAGE: ORed Huber/Orlando Sentinel/TNS
COVER STORY
not, which agencies or bodies politic are going to regulate scientific experimentation or saving the world. What access? Should there be a quota system — and, if so, based happens when we think beyond this, to a time when it is on what? Income? Nationality? Race? possible to be a space pedestrian? To be sure, this is all virgin territory, but we should Another pertinent area of inquiry must surely include consider it only a matter of time before entrepreneurs, the implications of having a supra-global military presence. businesses, and governments step in to fill the breach. Up until World War II, it used to be the case that those Another consideration, then, is who will have the right to nations with the greatest naval capacity stood the best grant permissions for mass space travel or space habitation. chance of world domination. As we move into a new epoch In a recent interview with the Investment Migration of accessible space travel, it stands to reason that those who Insider, Global Citizenship Review’s Editor in Chief, dominate the deepest regions of the sky will also be the Dr. Christian H. Kälin, spoke about his desire to extend dominant force at home on Earth. It does not take an global citizenry far beyond the reaches of the moneyed aeronautical engineer to understand that being able to shoot minority and toward those people who currently have no a weapon accurately from a great height almost necessarmeans of changing their inherited citizenship or residence ily means an enormous military advantage over an adversary status, specifically citing refugees that cannot do the same. When and displaced persons as examples. space travel goes mainstream, to As we move into a As Kälin rightly notes, “citizenship what extent is the weaponization of is a very arbitrary thing, a very spacecraft going to play a role in new epoch of accessible discriminating thing”. If this is true domestic diplomacy — and who, space travel, it stands to on the Earth’s surface, one imagines indeed, is going to be the arbiter of it can only continue to be so off it. private conflicts that play out above reason that those who As the terrain of global citizenry the Earth’s atmosphere? expands, we ought to begin However, perhaps this talk of dominate the deepest thinking about how all people can space militarization and war is regions of the sky will have the opportunity to live in premature and overly pessimistic. dignity and security not just in the After all, the overriding theme of also be the dominant country of their choice but away contemporary space travel seems force at home on Earth from Earth too. to consist more of collaboration The discussions about who than competition. For instance, could be the first people living when SpaceX lands its first private permanently in space are more advanced than you may cargo mission on Mars, it plans to do so in partnership realize. The Mars One project is an initiative that began with NASA, and Mars One is already looking to outsource in 2011 and has the singular, albeit lofty, aim of establishing its technological requirements to companies like SpaceX permanent human occupation on the Red Planet. It and Lockheed Martin. envisions sending a human cargo on a one-way mission These are undoubtedly exciting times, even if the to Mars, where the crew will forever remain in order to consequences of an enduring space presence are hard to establish a living human colony. Baffling as this may seem, predict. An optimistic and not immodest aspiration might when the initiative put out a call for volunteers to man be that an increased space presence will engender a more the first mission, it received about 2,700 responses from “planetary perspective”, as Virgin Galactic CEO George people apparently keen to leave the confines of our planet Whitesides has said he hopes for. The more people who permanently. can experience the so-called overview effect — that ecstatic Despite having an aura of mass psychosis, the notion feeling of smallness that comes from looking down on our of calling for volunteers or drawing lots for space planet from all the way up there — perhaps the more exploration does point to a slightly more egalitarian route chance we have as humans of protecting what we have, for space travel than we have become accustomed to of seeing our similarities as earthlings as opposed to our through popular media. Most of our cultural touchpoints differences as nations, and of treating with requisite care about space — particularly in the cinematic realm — our one, shared, inalienable (so to speak) possession: include stories of a highly trained elite either doing complex the Earth.
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COUNTRY REVIEW
Above: Thailand’s Phang Nga’s breathtaking landscape offers scenery that cannot be found anywhere else in the world, truly leaving visitors to the country with an overwhelming sense of wonder at the glory that is nature
Thailand
Southeast Asia’s Kingdom of Wonder
T
hailand is one of the most popular destinations to travel to at the moment, with the country enjoying continued favor among both pleasure and business travelers. Picturesque mountain scenery, crystalline seas and pristine beaches, spectacular temples, and several World Heritage Sites are not the only wonders to be found in the slice of paradise that
is Thailand, as the country also offers a buffet of benefits for the more business-minded. Unbeknownst to many, Thailand’s business-ready and investment-friendly climate is propelling the Kingdom of Wonder into investor-haven territory. Situated in the heart of Southeast Asia, the Land of Smiles — as Thailand is affectionately known — has
38 | Global Citizenship Review
IMAGE: Shutterstock
Ratchadawan Loetsilathong, Acting President, Thailand Privilege Card Company
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COUNTRY REVIEW
been the region’s trade and business hub since 1700; work Agreement on Services, and the Treaty of Amity Ayutthaya, which was the capital city during that period, and Economic Relations between Thailand and the US. was known as the Venice of the East. Today, Thailand According to the World Bank, Thailand has made continues to enjoy this strategic location, which helps exceptional gains with respect to social and economic the country serve as a gateway to some of the world’s development, progressing to an upper-income country in fastest-growing markets, and Bangkok, the bustling and less than a generation and moving towards meeting the beautiful capital city, is just a short flight away from key globally significant UN Sustainable Development Goals. destinations such as Cambodia, Thailand’s economy grew by Myanmar, and Vietnam. 3.9% in 2017, which is its best As one of the world’s leading growth performance since 2012, Thailand’s businesstravel destinations, manufacturand growth is expected to reach ready and investment-friendly ers of hard drives, and exporters 4.1% in 2018. It comes as no surof rice, automobiles, electronics, prise then that Thailand was climate is propelling the healthcare, textiles, and jewelry, ranked the 32nd most competitive Kingdom of Wonder into Thailand possesses a unique nation in the world (of 137 councompetitiveness and offers an tries) in the 2017–2018 edition of investor-haven territory alluring environment for investthe World Economic Forum’s ment. Apart from enjoying its Global Competitiveness Report. abundance of resources and a skilled and cost-effective On Bloomberg’s Misery Index 2018 report, Thailand was workforce, foreign investors can also enjoy privileged ranked the least miserable country out of 66 countries for advantages thanks to the country’s agreements with the fourth consecutive year. members of the Association of Southeast Asian Nations Investment wonders will not soon cease in Thailand (ASEAN), of which Thailand is a founding member. as the country — which boasts a USD 406.8 billion Examples of these agreements include the ASEAN ComGDP, 68.9 million population, and USD 16,885 GDP prehensive Investment Agreement, the ASEAN Frameper capita — was ranked 8th of the top 10 Best Countries
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COUNTRY REVIEW
to Invest in 2018. The ranking is the result of a study exemption of import duties. Previously, this was limited to conducted by global marketing and communications materials used for manufacturing for re-exportation; firm BAV Group in partnership with the University of however, it now includes materials imported for domestic Pennsylvania’s Wharton School. use, particularly those for research and development The ranking is also an indication that Thailand’s activities. Foreign investments in certain industries that 20-year National Economic Strategy (2017–2036) is involve new and advanced technology and bring moving the country in the right direction. With its goal in development and innovation are strongly encouraged by to achieve the status as one of the Thai government. the most preferred investment The results of these efforts are destinations in Asia, the Thai beginning to show. According to Legal and regulatory government has launched a the World Bank’s 2018 Ease of reforms are another of the number of mega infrastructure Doing Business ranking, Thailand projects, which include a highis among the top three investment government’s focal points speed rail venture with China, destinations in ASEAN, with the airport upgrades, and mass esteemed institution reporting as the country works to transit lines in Bangkok and the that it takes only about five days prepare for technology Eastern Economic Corridor. to start a business in Thailand. Legal and regulatory reforms The Kingdom of Smiles also investment in the 4.0 era are another of the government’s offers foreign investors and their focal points as the country families privileged facilitations works to prepare for technology investment in the 4.0 through the issuance of a renewable, five-year, multipleera and improve the ease of doing business in Thailand. entry Thai residence visa. To qualify, foreign investors The amended Investment Promotion Act B.E. 2560 are required to become a member of Thailand Elite, the (2017) is the latest legislation to grant foreign investors first program of its kind worldwide developed by the
40 | Global Citizenship Review
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Above and opposite page: Life in Thailand is a unique combination of culture, heritage, pleasure, and opportunity, with the country’s thriving economic performance providing a warm reception to international investors
IMAGES: Shutterstock
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COUNTRY REVIEW
Thailand Privilege Card Company Limited, a wholly owned subsidiary of the Tourism Authority of Thailand, under the Royal Thai Government. Through the offering, Thailand Elite members can enjoy visits of ‘regular’ duration, i.e. 90 days, to visits as long as one year. Exclusively, members can stay in the country for an unlimited period, just as any Thai citizen, as the one-year stay extension can be renewed annually without the usual need to cross the border. Thailand Elite’s residence program is also the only one of its kind to offer members the most premium of VIP services and facilitations, such as an expedited passport control process, complimentary limousine transfers, personalized support services for contacting Thai government and business agencies, privileges at luxury hotels, spas, golf courses, and international hospitals throughout Thailand, and a multilingual 24hour member contact center. While seven packages designed to meet applicants’ needs and desires are available, the following three are currently the most popular: • Elite Ultimate Privilege: Offers a 20-year residence visa. The once-off fee is approximately USD 60,000 with an annual fee of approximately USD 600. The package includes VIP assistant services, government concierge services, and elite lifestyle services. • Elite Privilege Access: Is designed for family applications and offers a 10-year residence visa for each family member. The once-off fee is
approximately USD 30,000 for the main applicant and USD 22,500 for each dependant. There are no annual fees or age restrictions. • Elite Easy Access: Offers a five-year residence visa. The once-off fee is approximately USD 15,000 and there are no annual fees or age restrictions. This option can also be upgraded to a higher-tier package. All in all, Thailand is doing a remarkable job of positioning itself as the ‘next best option’ for global citizens looking to improve their quality of life and international businesses seeking to optimize their investment potential.
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COUNTRY REVIEW
Thailand Considered the jewel of Southeast Asia, Thailand boasts spectacular natural beauty, a rich cultural history, and an exceptional standard of living.
Country Information
Languages
Currency
Economy
Population
Thai
Baht
Industrial and service-based
68 million (CIA ‘The World Factbook’ 2018)
Thailand is one of the most sought-after holiday and residential destinations in Southeast Asia, offering an affordable and convenient standard of living. The country has a population of 68 million people who are well known for their friendly disposition.
Chiang Mai
Udon Thani
Bangkok
Pattaya
Thailand Koh Samui
Phuket
Land of Smiles Due to the friendly and highly welcoming nature of the Thai people, Thailand is often referred to as the ‘Land of Smiles’. Thai people are very proud of their rich cultural heritage, which is influenced by their Buddhist and Hindu beliefs. This popular destination offers an affordable yet convenient standard of living.
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Significant Economic Strength Thailand is highly dependent on international trade with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. It has a relatively well-developed infrastructure and free-enterprise economy. The industry and service sectors produce about 90% of GDP.
COUNTRY REVIEW
20%
Thailand does not levy a net wealth tax
7% Value added tax
Corporate tax rate
Up to 35% personal income tax rate
Henley Passport Index
87
2018 Henley Passport Index
101
64
Quality of Nationality Index
Human Development Index 2017 Human Development Index
95
Henley & Partners – Kochenov Quality of Nationality Index 3rd Edition
ND-GAIN Country Index
Good Country Index
55
Exports USD 228 billion US, China, Japan, Hong Kong, Malaysia, Australia, Vietnam
Travel Freedom Ranking
Henley & Partners – Kochenov Quality of Nationality Index 3rd Edition
2016 Notre Dame Global Adaptation Index
The tax residence of an individual is determined by the period in which the individual is present in Thailand. Taxresident individuals are those who are present in Thailand for at least 180 days in a calendar year. Tax-resident individuals are subject to income tax on Thai-sourced income and income arising or earned overseas only if remitted to Thailand in the year in which it is derived. Non-tax resident individuals are subject to tax on income from sources in Thailand only.
Economy and Markets
Country Rankings
64
Tax Benefits
2017 Good Country Index
Increasing Private Wealth With the expansion of both the economy and asset markets, the high net worth segment in Thailand has seen rapid growth in recent years. The visibility of global and specialist private banks in the country’s capital has signaled the rise of private wealth in this Southeast Asian nation.
Imports USD 190 billion China, Japan, US, Malaysia (Source: CIA ‘The World Factbook’ 2018)
Tourism Wonder Tourism is a major contributor to Thailand’s economy. Thailand was ranked 34th out of 136 countries in the World Economic Forum’s latest Travel and Tourism Competitiveness Report 2017, performing well in terms of its natural resources and tourist service infrastructure.
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FEATURES
Interview
Namira Salim Space pioneer Namira Salim talks to the REVIEW about her plans to organize the first peace summit to be held in space REVIEW: What inspired you to go to space and how
REVIEW: Can you tell us about your upbringing? NS: I was raised in a traditional family and grew up in Pakistan until my high school years. My father served in the Pakistani Army for 23 years and my mother was a home-maker. After high school, I moved to Dubai to join my family, where my father had set up a heavy construction equipment business. I then moved to the US for further education and earned a Bachelor of Business Administration in International Business from Hofstra University in Long Island as well as a Master of International Affairs from Columbia University in New York.
REVIEW: How did the Space Trust come about and what are the organization’s key objectives? NS: Being part of the commercial space industry since 2006, I realized that space is opening to all sectors, encouraging public–private partnerships in an increasingly complex space environment and triggering a new space economy (which contributed over USD 300 billion in total
revenue in 2016 alone). Moreover, with the growing applications of peaceful uses of space science and technology on Earth from the International Space Station, space has become a concrete ground for international cooperation. So, Space Trust was established on the ethos of advocating space as the new frontier for peace and finding innovative solutions for a more peaceful world — by opening space to world leaders and politicians for them to view Earth from a whole new perspective and to give space diplomacy a chance.
REVIEW: Can you outline for us the potential that commercialization of space holds for life on Earth? NS: It’s about the democratization of space, where low-cost access to space is available to the average person and to all sectors alike. For instance, NASA now contracts private companies for commercial resupply services (which include SpaceX, Orbital Sciences, Orbital ATK of Virginia, Sierra Nevada Corporation of Nevada) while Blue Origin and Virgin Galactic are in a head-to-head race in the commercial space tourism sector. Asteroid mining is another promising aspect of commercialization of space, which holds the potential of bringing raw materials to Earth. Planetary
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does it feel to be the first Pakistani to experience this? Namira Salim (NS): Space makes my DNA. I was born believing that I would go to space one day. In my teenage years, I would announce to cousins and friends that I would grow up to become an astronaut. I was enchanted by the mystery of the night sky and inspired by the beauty of the stars. In late 2004, I stumbled upon news about the USD 10 million Ansari X Prize winning flight, which was the first privately manned spaceflight. Media was abuzz with Richard Branson’s plans to license this technology and create the first commercial space-liner of the world (Virgin Galactic). I first called Virgin Galactic in early 2005, and in January 2006 I was selected as their Founder Astronaut out of 44,000 candidates. I feel extremely honored and fortunate to represent my country as the first Pakistani astronaut, my official title in the country, as well as the region as ‘the first South Asian space tourist’.
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Resources and Deep Space Industries are leading in this sector. Commercialization of space is also about the peaceful applications of space technologies on Earth via telecommunications satellites, disaster management, and experiments in zero gravity, to name a few. It is also about the development of private space stations in low Earth orbit, cislunar (between Earth and the moon) orbit, and deep space. Commercial access to space is the way of the future and set to span far into deep space.
on women and helps governments to equip and educate women regarding the technical and policy capabilities to integrate space technology and applications in their strategic planning towards the implementation of the 2030 Agenda for Sustainable Development. Innovative approaches such as the provision of technical assistance, expert assistance, support for research and advisory services, and capitalization through capacity-building for the 21st century is a cross-cutting thematic priority on existing projects and programs of this UN office.
REVIEW: Which current developments regarding space are most interesting to you? NS: The movement of humans to Martian colonies, which will shape humans into space ambassadors and inspire everlasting peace on Earth beyond political boundaries.
REVIEW: What inspired you to begin organizing the first peace summit to be held in space, and how is this mission progressing? NS: With space opening up to all sectors, why not open it up to world leaders and politicians? To that end, (zero gravity) 0G Summit — the first peace summit in space, inspired by G Summits on Earth — the lead initiative of Space Trust, will engage world leaders, religious figures, peace-makers, civil society, and youth to utilize space as a sustainable tool for peace-making and conflict resolution on Earth — at the dawn of a New Space Age — i.e., the commercialization or democratization of space. ‘0G Summit — Space Diplomacy in the Age of New Space’ has been presented at top space industry events since 2015 and supports the work of the Committee on the Peaceful Uses of Outer Space (COPUOS), led by the UN Office for Outer Space Affairs. The inaugural annual 0G Summit was launched on the sidelines of the UN General Assembly last year and this year we are looking forward to hosting the same event on a larger scale on the sidelines of the 73rd Session of the UN General Assembly in New York, at the UN Headquarters, in September, to inspire world leaders with Space Trust’s thought leadership of innovative space diplomacy.
REVIEW: How can space be more accommodating of women and minorities? NS: Generally, the space and STEM sectors are encouraging more and more female inclusion and gender equality in support of Planet 50-50 by 2030. Moreover, the UN Office for Outer Space Affairs’ Space for Women initiative strengthens capacity-building activities focusing
REVIEW: What is the potential for space to be a driver of socioeconomic development? NS: The application of space science and technology is essential for the advancement of humankind and the successful implementation of the 2030 Agenda for Sustainable Development, the Paris Agreement on climate change, and the Sendai Framework for Disaster Risk Reduction. Additionally, space technology and innovations hold great potential for addressing new and emerging sustainable development challenges. Through a series of high-level fora in 2016/17, the collective space community, under the leadership of the UN Office for Outer Space Affairs facilitated a constructive dialog between policymakers and key stakeholders from government, civil society, business, and industry, among others, to address the broader perspective of space economy, space society, space accessibility, and space diplomacy. These fora were held in the lead-up to UNISPACE+50, held in June 2018, marking the 50th anniversary of the first UN Conference on the Exploration and Peaceful Uses of Outer Space to shape and position space activities as drivers for innovation, socioeconomic development, and diplomacy for a sustainable future.
REVIEW: Where do you spend most of your time lately and what do you enjoy about this city/country? NS: Currently, I am cherishing my time in Dubai with my father. I love the Principality of Monaco, where I have been based for over 20 years. Monaco is the nerve center of my dreams; it is my space on Earth and it inspires me profoundly.
REVIEW: Can you share with us your plans for the future? NS: To establish the annual high-level 0G Summit as the premier space peace summits on Earth in the lead-up to 0G Summit 2030 in orbit, and to continue developing Namira Monaco, Jewels from Space.
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Above: Yuri Gagarin and Valentina Tereshkova in 1963, shortly after Tereshkova’s return from her first-ever space mission, which was two years after Gagarin’s triumph in 1961
Pioneering Space Exploration: Five Individuals Leading the Pack First Human in Space The biggest milestone in space exploration is certainly when the first human made it outside of the Earth’s orbit. In 1961, Russian cosmonaut Yuri Gagarin launched into space inside a spherical Vostok 1 capsule, orbited Earth once during a 108-minute flight, then landed safely in a Russian field. He died in 1968 in an accident during a military training flight, at the age of only 34. The space flight was a major victory for the Soviet Union and spurred the Cold War space race with the US for decades to come.
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IMAGE: TASS/Valentin Cheredintsev
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t’s been nearly 50 years since the first human stepped onto the surface of the moon. This was at the height of the Cold War when space exploration was dominated by the Soviet Union and the US, with the one superpower leading the other’s achievement again and again. These were exciting times for the pioneering space exploration industry. The pace of innovation has dwindled since then — until the past decade, when more countries, private firms, and individuals have begun to push the boundaries of space endeavors. This article looks at pioneers within the space exploration industry.
Above: ‘Afronaut’ tech entrepreneur Mark Shuttleworth (left) spent eight days aboard Soyuz mission’s TM-34. Elon Musk (right) has become a globally recognized and influential contributor to space-related developments, having founded SpaceX. Both Shuttlewoth and Musk are of South African heritage
First Female in Space Two years after the Soviet Union’s first major space travel achievement, the first female, Valentina Tereshkova, made it to space. The 26-year-old Tereshkova piloted the Vostok 6 capsule, completing 48 orbits of Earth and staying in space for nearly three days. Before her major accomplishment, Tereshkova was a textile-factory assembly worker and an amateur skydiver. To this day, Tereshkova is the only woman to have completed a solo space mission and remains a prominent icon in Russia. At the age of 76, she expressed her desire to go to Mars, although she noted that her age didn’t make her the perfect match. To this
First Moon Walk
IMAGES: GETTY/Robyn Beck/AFP
IMAGE: TASS/Valentin Cheredintsev
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space. After selling his digital certificate company Thawte to Verisign for USD 575 million, the South African flew to the International Space Station (ISS) as a member of the crew of Soyuz mission TM-34. Shuttleworth spent a year in training for the flight, eight months of that in Star City, Russia, before rocketing off to the ISS. He is the world’s second space tourist, following millionaire Dennis Tito’s mission in 2001. Tito reportedly paid USD 20 million to travel to the ISS.
First Private Space Travel The privatization of space travel became a reality in 2010 when California-based company Space Exploration Technologies (SpaceX) launched its Dragon capsule atop a Falcon 9 rocket into space. The spacecraft completed two trips around the Earth before splashing down in the Pacific Ocean. Headed by South African-born Canadian American entrepreneur Elon Musk, SpaceX became the first private company ever to launch a spacecraft to Earth orbit then recover it after re-entry. Only six nations or governmental agencies had accomplished the feat before. The company has since broken new ground in successfully demonstrating reusable rockets that can safely re-enter the Earth’s atmosphere after orbit, drastically cutting expenses for space travel. Going forward, SpaceX’s first cargo mission to Mars is scheduled for 2022 and has spurred similar ambitions from governments and private enterprises around the world, marking a renewed enthusiasm for space travel today.
day, Tereshkova is the only woman to have completed a solo space mission
Only a month after Gagarin became the first human in space, astronaut Alan Shepard became the first American to do the same. It was only nearly a decade later, in 1969, that the National Aeronautics and Space Administration’s Apollo 11 mission touched down on the surface of the moon. Astronauts Neil Armstrong and Buzz Aldrin spent more than 21 hours on the surface of the moon. Armstrong studied as an aeronautical engineer and fought as a pilot in the Korean War. He is best known for the line “That’s one small step for [a] man, one giant leap for mankind” upon setting foot on the moon.
First African in Space At the age of 28, in 2002, millionaire entrepreneur Mark Shuttleworth became the first African to venture into
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Above: Established in 2012, the Zaatari refugee camp in Jordan is home to approximately 80,000 Syrian refugees. The once-temporary camp has grown to be considered Jordan’s fourth-largest city
Inside the Refugee Camp Where Technology Improves Lives
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rdinarily, the advancements in technology that receive the most airtime are those that serve the relatively affluent communities that can afford them. Whether it be the latest smartphone, electric car, or innovative nanotechnology, there is something deeply seductive about the kinds of tech that enhance our lifestyles and play directly into our propensity for material
aspiration. Meanwhile, however, hugely exciting developments are also taking place at the very opposite end of the spectrum. In recent years, for example, enhanced connectivity and the wide diffusion of mobile telephones have reached most remote corners of the world, resulting in a significant improvement in the lives of the poor. We have seen how mobile banking facilitates their financial
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IMAGE: UNHCR/Ivor Prickett
Paola De Leo, Head of Group Philanthropy, Henley & Partners, UK Executive Director, Andan Foundation, Switzerland
Above: Members of Henley & Partners’ delegation in the field at the Zaatari refuge camp
IMAGE: Henley & Partners
IMAGE: UNHCR/Ivor Prickett
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and economic inclusion, how mobile healthcare and Henley & Partners’ support to the UNHCR has been education has reached millions previously beyond the primarily focused on funding refugee registration boundaries of these services, and how new technologies procedures and identification documents, a theme very — such as solar and hydro power — have provided access much in line with the firm’s core business. When the to energy without building expensive power plants. partnership between Henley & Partners and the UNHCR For the past four years, residence was initiated in 2014, the situation and citizenship firm Henley & Partin Jordan was desperate, with With the intelligent ners has been keenly supporting thousands crossing the border from the work of the United Nations use of technology based on Syria each month. At the time, over High Commissioner for Refugees 51.2 million people had been biometric data collection (UNHCR), the UN’s Refugee Agency. displaced. To simply record and In May, a delegation from the firm register all of their identities is an methods and far-seeing was invited by the UNHCR to travel onerous and intimidating task, investment of resources, to Jordan to visit the Zaatari refugee before even beginning the critical camp, one of the most advanced refwork of providing refugees with the UNHCR has turned ugee operations in the world. The access to basic services, aid, and group included REVIEW Editor in protection. refugee registration into Chief and Henley & Partners CEO Today, four years later, the figan efficient and impressive and Chairman Dr. Christian Kälin; ures for displaced people worldwide Henley & Partners’ Head of Group are no less staggering. At the last survival mechanism Philanthropy Paola De Leo; former count, the number stood at a record CTO of Cisco Services Monique high of 68.5 million. However, with Morrow; and Russian entrepreneur Evgeny Tugolukov. the intelligent use of technology based on biometric data The field trip was a richly rewarding experience that ofcollection methods and far-seeing investment of resourcfered insight into the impactful lifesaving new technologies es, the UNHCR has turned refugee registration into an being used in this humanitarian context. efficient and impressive survival mechanism.
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During Henley & Partners’ visit to refugee registration facilities in Amman, the delegation witnessed how the entire registration process is conducted today. One of the first major technological developments was the introduction in 2014 of biometric registration and iris scans to enable quick and accurate identification of individuals by registering an image of their eyes. The advantages of accurate biometric recognition and registration were apparent from the start as this fail-safe identification method prevents refugees undergoing double registration either in camp settings or during the passage between two different countries. The success of the intervention has, however, exceeded all expectations, and verified and secure refugee identities are today at the core of an entire system of identity management and service delivery named PRIMES, the Population Registration and Identity Management EcoSystem. PRIMES consolidates all UNHCR data previously stored in over 500 databases
worldwide into one single database that can be accessed via the web and serves as a mainframe that includes all interoperable UNHCR registration, identity management, and caseload management tools and applications. The result is a streamlined service that ensures maximum capture of data and access to information. Refugee data are initially recorded at registration centers in Amman, Mafraq, and Irbid, where refugees first arrive having crossed into Jordan. After the collection and verification of documents, the UNHCR immediately identifies those who are most in need, such as children belonging to female-headed households, separated children, and people with disabilities. Furthermore, mobile registration centers and offline data collection applications allow UNHCR staff to reach refugees in more remote and rural areas, as well as those in hospitals or otherwise unable to reach an urban hub. Continuous registration activities then go on throughout the year, keeping an
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IMAGES: UNHCR/Jared Kohler; UNHCR/David Azia
Above and opposite page: The UNHCR is working diligently to implement the use of technology in order to improve operations at refugee camps
IMAGE: UNHCR/Sebastian Rich
IMAGES: UNHCR/Jared Kohler; UNHCR/David Azia
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updated record of births, deaths, and marriages, alongside any additional information relevant to the circumstances and requirements of individual refugees. This allows for effective case-by-case management and the precise delivery of services and responses to the needs of individuals. However, the benefits of iris scanning do not end with collection of data about refugees. In most host communities, refugees are not allowed to work and provide for themselves. They are therefore supported by charitable donations that are channeled through the UNHCR and a number of other organizations worldwide. Another brilliant technological intervention called EyeCloud facilitates the delivery of financial assistance to refugees through a combination of banking and biometric technologies, based exclusively on UNHCR biometric registration data. In essence, at a number of cash machines in camps and in towns, EyeCloud scanners identify individuals by reading the pattern of their irises and then
release their available funds accordingly. This system replaces the need for cards and chip and PIN technology, and bypasses the difficulties refugees face in opening bank accounts. In 2016, over 30,000 households received monthly cash assistance, winterization cash, and cash for health, totaling nearly USD 85 million. One may speculate that such technology will even become indispensable in retail centers in years to come. In a collaborative way, EyeCloud can also be paired with other organizations as PRIMES is interoperable with the multiple IT systems used by various governments and partner organizations. For instance, leveraging on the biometric registration conducted by the UNHCR, this year, the World Food Program launched EyePay®, an irisenabled point-of-sale platform that uses blockchain authentication to process supermarket transactions via the Ethereum cryptocurrency ledger. While providing secure identification, the technology allows a more dignified access to food distribution, avoiding common kitchens and food vouchers. An individual refugee can go to any supermarket wired to EyePay® and, at the checkout, a biometric scanner reads their iris, checks the blockchain database to confirm their identity and funds, and then authorizes their purchase. All in all, the signs are very encouraging for technological innovation in the Zaatari refugee camp, with tangible benefits already reaching those who are most in need. For the Henley & Partners delegation, the trip to see how registration technology is improving refugee lives was doubly rewarding because it showed how the firm’s specific interventions were making a difference and offered encouragement that the support to the UNHCR is paying dividends in terms of its humanitarian impact. The UNHCR partnership has not only proved successful from a humanitarian point of view — it has also yielded a significant influence on the firm’s corporate culture with the involvement of staff, management, and partners in the refugee cause. UNHCR speakers invited to participate in Henley & Partners conferences have shared their passion for this cause with a large audience all over the world. Henley & Partners is proud of having been able to contribute in some small degree to the improvement of the refugee situation and is motivated to do more and scale up its impact, bringing its experience to others and to its clients and partners. A new venture will soon be unveiled to demonstrate the firm’s renewed commitment and even more determined desire to support the UNHCR in its professional and lifesaving work.
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The EB-5 Visa and the American Dream Marie Ekberg Padilla, Editor in Chief, EB5 Investors Magazine, US
Understanding the EB-5 Visa More than 25 years ago, the US Congress passed legislation with the aim of spurring US economic growth through foreign investment. The Immigration Act of 1990 effectively created several types of new immigrant visas, the most popular one being the EB-5 visa. Qualifying for an EB-5 visa starts with having the required minimum capital investment amount of USD 500,000 or USD 1 million for investment into a US business, either through a regional center or a direct investment. The investment amount depends on the location of the business, whether it is in an urban or targeted employment area. The business is also required to generate at least 10 full-time jobs for
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ach year, more than 10,000 people apply for the EB-5 visa, which allows them to invest in a project in the US to qualify for a Green Card to live and work in this land of the free. Over the past 10 years, applications have increased from a mere 1,200 to more than 12,100 in 2017, according to the US Citizenship and Immigration Services (USCIS). The industry has recently seen a shift in the market in light of a visa backlog for some nationalities. The EB-5 community is adapting to an increasingly diverse and global EB-5 industry, shifting focus to more emerging markets such as Vietnam, Brazil, India, Russia, and the Middle East.
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Top 10 EB-5 Visa Recipient Countries of 2017 Other 8% Brazil 3%
Vietnam 5% Mainland China 75%
Venezuela 1% South Korea 2% Russia 1% Taiwan 2% India 1% Mexico 1% Nigeria 1%
Above: In 2017 a total number of 10,090 EB-5 visas were issued to applicants from all over the world. The majority of applications were from nationals of Chinese descent followed by Vietnamese and Brazilians (Source: US Department of State Report of the Visa Office 2017)
countries in the same fiscal year were Vietnam (471 visas), Brazil (282), South Korea (195), and India (174).
Program Benefits Unlike other visas, the EB-5 program requires no sponsor, special knowledge, skills, or prior experience. It allows investors to bring their family — a spouse and unmarried children under 21 years of age — with them to the US. Obtaining a visa and entry into the US through the EB-5 can also be faster than immigration options. The program also attracts foreign capital to fuel development within the US, often in economic development areas in need of a boost.
Some Considerations
Mainland China-born applicants are facing a considerable retrogression, the industry term for the backlog causing applicants to wait some 10 years for their conditional residence permits and even longer for permanent residence. Such a backlog has also started to impact Vietnamese applicants slowly. Americans, and the jobs need to be maintained for a In light of the retrogression, the EB-5 industry is facing minimum of two years. the challenge of redeployment. EB-5 regulations state that Most investors place their money in the management of investors must keep their investments ‘at risk’ throughout regional centers, which are public or private entities the application process. With retrogression, however, their approved by the USCIS and have been part of the EB-5 investments can mature before applicants receive their perprogram since 1992. The centers oversee EB-5 investment manent Green Cards. Thus, the industry is finding ways to projects located throughout the redeploy investors’ original funds US, pooling money from so their money remains at risk multiple investors. As of 1 May under other investments to be In fiscal year 2017, the 2018, there are 901 USCISable to qualify for an EB-5 visa. USCIS issued 7,567 EB-5 approved regional centers. Future of the Program Once investors have made visas to mainland Chinese their capital investment, they The EB-5 regional center pilot must submit a petition and, program has been repeatedly nationals, which amounted after the investment is apextended over the past couple to 75% of the 10,090 EB-5 proved, they can obtain a twoof decades, this latest round to year, conditional residence 30 September 2018. The direct visas issued worldwide card. This card allows investors EB-5 option has already been to live and work legally in the passed into law. Members of US. When the two years are over, applicants who can Congress have introduced a variety of reforms of the prove they have met the EB-5 requirements earn permaprogram, including raising the current USD 500,000 nent resident Green Cards, which can open them up to minimum investment to at least USD 800,000; however, US citizenship opportunities about five years later. no decision has been made. EB-5 visas are issued by the USCIS to applicants from The benefits of the program to the US economy are all over the world, but mostly from mainland China. hard to deny; foreign investment brings economic growth In fiscal year 2017, the USCIS issued 7,567 EB-5 visas and creates American jobs while eligible investors and to mainland Chinese nationals, which amounted to 75% their families achieve their goal of living the American of the 10,090 EB-5 visas issued worldwide. Other leading Dream — a win–win situation for everyone involved.
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The Common Reporting Standard and the Taxpayer’s Right to Privacy Ceris Gardner, Partner, Maurice Turnor Gardner, UK
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n a world where many individuals voluntarily live their lives in full public view and share, albeit sometimes inadvertently, the most personal of information on various different social media platforms, one must consider the right to privacy in context. In the UK, the right to privacy in its current guise has its origins in the 1948 Universal Declaration of Human R ights. The drafters of the European Convention on Human Rights (ECHR), which was ratified by the UK in 1951, drew heavily on the 1948 Declaration, and the ECHR became part of British domestic law via the Human Rights Act 1988 which came into force in October 2000. This was about the same time as the EU confirmed the principles enunciated in the ECHR in the EU Charter of Fundamental Rights in which Article 7 covers privacy and Article 8 covers data protection. The term “right to privacy” is not actually defined as such in any of the ECHR, the EU Charter, or the Human Rights Act (which directly imports the wording of the ECHR). The ECHR describes such right as the “right to respect for private and family life, his home, and correspondence”1 but this right is “qualified”. The situations in which public authorities can interfere with these rights are where the authority can show that its action is (i) in accordance with the law, (ii) in pursuit of recognized legitimate aims, and (iii) necessary in a democratic society in order to: • Protect national security • Protect public safety • Protect the economy • Protect health or morals • Prevent disorder or crime • Protect the rights and freedoms of other people So, how do these rights sit with obligations to divulge and share information under the Common Reporting Standard (CRS) and the automatic exchange of
information? To answer this question, one needs to consider the origins of the CRS. In response to the G20 request that fiscal authorities worldwide obtain information from their financial instit utions a nd automatica lly excha nge that information with other jurisdictions on an annual basis, the CRS developed alongside the inexorable drive on the European front towards transparency to combat money laundering, with the introduction in the past two years of beneficial ownership registers for both: • “Persons with significant control” of UK companies (accessible by anyone) • Trusts with UK tax consequences (currently only accessible by any law enforcement authority, which includes Her Majesty’s Revenue and Customs, the Financial Conduct Authority, and the National Crime Agency; the Fifth Anti-money Laundering Directive currently contemplates full public access) The CRS incorporates progress made within the EU, as well as global anti-money laundering standards, with the intergovernmental implementation of the Foreign Account Tax Compliance Act (FATCA), having acted as a catalyst for the move toward automatic exchange of information in a multilateral context. 2 As of 15 January 2018, according to OECD figures, 98 jurisdictions had signed up to exchange or commit to exchange information by September 2018. Under the CRS, essentially, banks and other “financial institutions” have to disclose information about their clients, which comprises: • Their name, date and place of birth, and tax identification number • The name of the bank, the account number, account balance, income, and withdrawals during the fiscal year
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This information is being exchanged electronically through the CRS Multilateral Competent Authority between the financial institutions holding the accounts Agreement (MCA A), which defines the scope, timing, and the relevant fiscal authorities around the world. format, and conditions for the exchange of CRS Given the recent and well-publicized data leaks information and is based on the multilateral Convention (either intentionally or through hacking), and the on Mutual Administrative Assistance in Tax Matters, seeming inability of the relevant authorities to protect the prime instrument for cooperation in tax matters. this very sensitive data, it is unsurprising that questions While the CRS MCA A is a multilateral agreement, have been raised about the CRS’ compatibility with exchange relationships for CRS information are bilatthe right to privacy. This is separate from the eral in nature and are activated when both jurisdictions fundamental question regarding legality of the have the domestic framework for CRS exchange in disclosure requirements under the CRS. Remember place and have listed each other as intended exchange that any action contrary to the right to privacy must partners. In total, by December 2017 there were over be lawful, necessary, and proportionate. 2,600 bilateral relationships for the automatic exchange While this article will not discuss data protection of CRS information in place across the globe. The UK laws in detail, since these (and the safeguards enshrined has 63 different arrangements with other jurisdictions. within them) are inextricably linked with an individAside from the complexity of the CRS (thanks to it ual’s right to privacy, it would having been based largely on be remiss not to allude briefFATCA), it is essentially a Akin to the indiscriminate ly to their effect and to issues measure designed to combat related to them. There is an cross- b order ta x evasion. nature of trawler fishing, the inherent tension between the Akin to the indiscriminate right to privacy on the one nature of trawler fishing, the CRS requires the exchange of hand and transparency on the CRS requires the exchange of a wide range of information other, with which both the a wide range of information OECD and the EU are grappling. regardless of whether there is regardless of whether there As early as 2015, the Europein fact any tax to catch. is in fact any tax to catch an Data Protection Supervisor In terms of citizenship-by(EDPS) voiced concerns in an investment (CBI) programs, opinion (albeit in relation to for some of those individuals an EU–Swiss automatic information exchange agreewho are considering moving to a jurisdiction that offers ment) about data protection (privacy) and proportionCBI opportunities there is a concern that their personal ality “with significant and unnecessary risks for the financial information will be passed to the relevant individual’s rights to privacy and data protection”. authorities in that jurisdiction where it may not be as The warning and concerns of the EDPS in relation to secure. However, where individuals are seeking CBI, the CRS and the lack of data protection safeguards they are often moving from a jurisdiction where were repeated in a further opinion in April 2017. In protections and safeguards for personal information addition, within the past three years, the European are lower than the jurisdiction to which they are Court of Justice has criticized such legislation permitseeking to relocate. ting public authorities to have access on a generalized basis to the content of electronic communications as Endnote 1 Article 8(1) of the ECHR; Schedule 1 of the Human Rights Act “compromising the essence of the fundamental right 1988 to respect for private life”. 2 OECD (2017), Standard for Automatic Exchange of Financial Implementation of the CRS requires both domestic Account Information in Tax Matters, Second Edition, OECD legislation to ensure that financial institutions correctly Publishing, Paris. http://www.oecd.org/tax/transparency/ automatic-exchange-of-information/crs/ identify and report accounts held by non-residents, and an international legal framework for the automatic exchange of CRS information. The preferred route for putting the international legal framework in place is
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I
nitiated by the World Design Organization, a renewed vision of the 140-member International Council of Societies of Industrial Design, the title of World Design Capital (WDC) recognizes cities around the globe that cultivate development through effective sustainable design, propelling title cities to harness their potential even more meaningfully and ushering them toward even greater sociocultural acclaim globally. Basking in its 2018 reign, Mexico City — the first WDC within North America — is a diverse, creative, and prosperous city, whose people and leaders are enthused about the resurgence of the city as a hyperconnected 21st-century metropolis. To date, five cities (designated biannually) have earned the sought-after title of WDC. From Torino to Seoul, to Helsinki, to Cape Town, to Taipei, the goal of the WDC has
historically been to transform their respective cities. Mexico City has now joined the ranks of these global megacities, and this culturally effervescent city has adopted the mission of ‘socially responsible design’ approaches for its 2018 reign, promising to merge the old and the new of the city’s aesthetics. Mexico City, the birthplace of Frida Kahlo and home of Diego Rivera, has a strong artistic and cultural influence, the status of which the WDC is invested in sustaining. Professor Mugendi M’Rithaa, President of the World Design Organization (which bears the rank of UN Consultative Status) and member of the WDC selection committee, has said that this new WDC “will serve as a model for other megacities around the world grappling with the challenges of urbanization and using design thinking to ensure a safe, more livable city”.
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IMAGE: Shutterstock
World Design Capital Mexico City 2018
From the key values of this year’s program, the current WDC will engage in city-wide initiatives that are based on six themes: people, mobility, city identity, environment, public space, and creative economy. Related activities will include exhibitions from both public and private museums, conferences, panels, installations, and documentaries, all intended to stimulate thought and initiate conversations and interactions navigating the importance of design in everyday life and its fundamental role in society. Featuring campaigns focusing on innovative health, communications, and security to urban gardens, bike-sharing, and playgrounds, Mexico City’s transformative design project is committed to involving a generationally diverse range of citizens. Mexico City’s social approach to the challenges of the first urban century will coordinate 13 renowned architects, designers, urban planners, writers, and artists who will analyze the challenges, policies, and opportunities facing urban cities today. The lecturers will present their vision, share their best practices, and contribute to the dialogue about new strategies of change that promote the wellbeing of cities and populations through design. An academic approach to the 2018 program will see an inter-university networking and collaboration platform between design and architecture universities, faculties, and educational institutions. Home of the Aztec temples, Zócalo plaza, museums, and iconic buildings such as the nouveau Palacio de Bellas Artes and the Metropolitan Cathedral, Mexico City has always displayed a passion and enthusiasm for culturally rich and historically meaningful design, making its selection as WDC 2018 a natural progression. In a
potentially shared future, the city will focus on the crucial role of design and architecture and what socially responsible design can mean to the life of a city, especially one with as much potential as Mexico City.
IMAGE: Shutterstock
IMAGES: Shutterstock
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The Rise of Smart Cities
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city with free Wi-Fi in all public spaces. A city where and so on. Their aim must be to forge a holistic smart city children learn how to program apps in elementary strategy that encompasses every area of citizens’ lives. school. Where street lighting is provided on In order to capture not just what cities are currently doing demand. A city that uses smart sensors to tell you where to on the ground but also what they plan to do, we evaluated park your vehicle downtown. That knows when your garbage their published smart city strategies and other policy papers. needs to be collected. That has open data access. That uses We awarded points on the basis of various criteria and smart algorithms to coordinate hospital and vaccination calculated an overall score out of 100 for each city — a score capacities. A smart city takes action in all of these areas of 100 reflecting the utopian city imagined in the based on a strategic and integrated planning approach and introduction. Of course, we cannot be sure that cities will a comprehensive and high-quality IT infrastructure. ultimately realize all their published plans. Some cities may Sounds too good to be true? Different cities already do simply dream bigger than others. But stated policy aims are each of these things today. But no single city exists that the best available guide to what cities plan to achieve within ticks all the boxes. A complete set of smart services is not a given timeframe. They fairly accurately reflect the extent something the world’s urban centers currently offer. In of their ambition when it comes to making their cities smart. many cases, it is not even something At the same time, importantly, they they are planning to offer in the provide valuable insight into their future. In Roland Berger’s approach and mindset. The smart city has groundbreaking investigation of 87 First, the good news: More and been an agenda item for global cities, Smart city, smart more cities are taking a strategic strategy offers the first systematic approach to becoming smart, by many years now and study of cities’ smart strategies on which we mean an approach based such a scale, we took a close look at on a properly thought-through there is widespread cities from Europe to Africa, from program consisting of integrated acknowledgment that regional centers of less than half a actions and carefully planned steps. million to megacities of more than We identify a strong increase in the smart city strategies 20 million. We examined their number of smart city strategies are of vital importance official smart city strategies and published each year since 2012. other strategic policies to discover Indeed, more than half of all the to the development what they were up to. And we looked smart city strategies publicly available at where they are headed in the and included in our study have been of urban areas coming years and decades. developed since 2014. The results took us by surprise. The figures speak for themselves: The smart city has been an agenda item for many years now The average score on the Smart City Strategy Index was just and there is widespread acknowledgment that smart city 37 out of 100. High performers are thin on the ground, with strategies are of vital importance to the development of urban just 19 of the 87 cities scoring more than 50 out of 100. A areas. But the situation on the ground is very patchy. Most sizeable gap exists between top-performing cities and their cities are simply not taking a broad enough approach: they peers lower down the ranking, as shown by the sharp fall-off lack a holistic perspective that covers all parts of society and after the top few players. And that’s not all there is to worry all relevant facets of urban life. Urban centers need to develop about. The quality of cities’ published strategies varies not an interconnected, integrated approach, one that brings only when taken as a whole but also when we look at each together areas traditionally viewed as separate: energy and of the three dimensions of the Smart City Strategy Index mobility, government and health, education and environment, individually — action fields, strategic planning, and IT
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infrastructure. Some cities are doing almost nothing in one or another of these areas and the cities that are doing well in all three areas are few and far between. When taking a closer look, it becomes obvious that cities’ smart strategies are often narrow in scope. They lack a comprehensive approach, tending to emphasize mobility, energy, and government topics while neglecting the areas of education, health, and buildings. Of course, digitization is a complex field. Cities need to start somewhere. Digitizing the city transit system, the energy supply, and public access to government services is a very good starting point on the road to building a smart city. But cities also need to keep the overall picture in mind. Focusing too heavily on some areas while not addressing others that may be equally relevant or in some cases even more relevant for stakeholders creates an imbalance in the overall strategy. The result is a lopsided approach. One key area where cities can improve their smart capabilities is coordination between their different functions. Digitization is a topic that affects all parts of the city administration. Inevitably, this is not easy to coordinate.
Our analysis of the smart city strategies published by municipal administrators often revealed a silo mentality — a mindset in which the different functions each take their own approach to digitization. For example, a city’s energy division will develop a smart approach for its operations, the city transit section its own approach, and so on. The result? A collection of isolated projects. A solution to this challenge is to set up a central function or office with responsibility for coordinating and crosslinking digitization activities. Many cities have already appointed a Chief Information Officer (or CIO) to deal with IT topics. This function needs to be developed into a Chief Digital Officer (or CDO) role, a function that encompasses not only IT issues but also smart city applications and their coordination and deployment. The CIO or CDO should be positioned high up in the hierarchy, close to the mayor. Our research shows that cities that have appointed a CIO or CDO — Vienna, Amsterdam, and Seoul, for example — reap considerable benefits. Having a central individual or office looking after digitization makes it much easier to
Top Fifteen Cities in the Smart Cities Strategy Index
Seattle 15 Chicago 56 90 85 2 Denver 10
New York 6
Santander 5
Bristol 13 London 4
Seoul 8
Vienna 70 70 90 1 Barcelona 9
Tokyo 12 Hong Kong 11
Singapore 74 67 70 3
Key Action Fields Strategic Planning
Rio de Janeiro 14 Paramatta 7
IT Infrastructure Above: Reflected above are the top fifteen cities in the Smart Cities Strategy Index ranking. For the top three cities, the score is further broken down for the three criteria: action fields, strategic planning, and IT infrastructure (Source: Roland Berger, 2018)
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Focus Areas of Implementation of Smart Technology 60
Government
50 Health
40
Buildings
30 20 10 0
Education
Mobility
Energy and Environment Above: Cities tend to focus their smart activity in the areas of mobility, government, and energy and environment (Source: Roland Berger, 2018)
coordinate the various smart initiatives in areas such as traffic, health, and education, for instance. Which cities are getting it right, and why? Who are the leaders and what can we learn from them? At the top of the list is the Austrian capital Vienna, at 73 points out of 100. It is closely followed by Chicago and Singapore, both scoring just one fewer point, at 72 out of 100. The rankings for the remainder of the top fifteen are given in parentheses on the world map, from London (ranked no. 4), Santander (5), and New York (6), down to Bristol (13), Rio de Janeiro (14), and Seattle (15). What is immediately noticeable from the breakdown of points is that high-scoring cities by and large achieve good results for all three criteria of action fields, strategic planning, and IT infrastructure. Their strong performance is based on a balanced approach and a clear commitment to all relevant areas. This reflects a degree of end-to-end, holistic thinking behind their strategy. A closer look at each of the top three cities sheds light on the sorts of things that these cities are getting right. Vienna, a city of 1.74 million inhabitants, has a well-structured smart city strategy. It also focuses on digitization in other governmental guidelines and directives, such as its strategic land-use plan and its transportation plan. The city lays out clear short-term, medium-term, and long-term goals for
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digitization. Steps include investing in glass fiber and the latest generation wireless networks while maintaining already highly advanced digital infrastructures. Public services are being comprehensively shifted online and Wi-Fi expanded throughout the city in collaboration with schools, universities, and community colleges. The city actively looks for companies to sponsor smart city activities, with pilot projects run in partnership with ICT companies as showcases for the economy of both the capital and the country as a whole. Chicago, which comes joint second in the ranking, sets out its vision for the future in The City of Chicago Technology Plan, which it describes as “a roadmap to drive Chicago to its aspirations of opportunity, inclusion, engagement, and innovation for all�. The 2.7-million-strong city is no stranger to social problems. But it boasts a particularly proactive approach to smart education, including improving citizens’ digital literacy with training and opportunities for hands-on experience, targeting young people and their use of technology through collaboration with public schools and city colleges, and making educational and creative material available to residents. For example, the city organizes the Civic Innovation
Below: The Austrian capital of Vienna made it to the top position in the Smart Cities Strategy Index, narrowly beating Chicago and Singapore
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Summer, a summer jobs program empowering teenagers to “use the latest digital tools to amplify their voices and take positive civic action using open data”. Chicago has also established five demonstration sites or neighborhoods to demonstrate digitization in an urban context. Public access to computers and support is provided by Connect Chicago, a network of 250 free-of-charge computer labs and digital skills training centers spread across the city. Singapore, with 5.4 million inhabitants (the largest of the top three cities), shares second place with Chicago. Singapore is particularly good at forging strong public– public and public–private partnerships in all different action fields. On the public–public side, common platforms bring government bodies together and data is managed by a coordinating arm. A joint laboratory exists with the Land Transport Authority (LTA) to develop a next-generation transportation network, and collaboration with the National Healthcare Group (NHG) is taking place to set up an innovation laboratory for safer treatments. On the public– private side, there is cooperation between government and key stakeholders on every level. For example, joint innovation laboratories have been launched with large corporations as well as with small and medium-sized enterprises and technology start-ups. Singapore is also working in partnership with top universities around the world, including the Massachusetts Institute of Technology and the Swiss
Federal Institute of Technology in Zurich, to generate new smart city solutions. One thing clearly demonstrated by the Index is that top-performing cities come in all shapes and sizes. You don’t have to be big to be beautiful — or at least, to be smart. Smaller cities such as Santander and Parramatta have exemplary, well-balanced strategies despite their size: both have fewer than 200,000 inhabitants but are in the top 10 in the Index. Some of the biggest cities in the Index rank in the Index’s bottom third. So, if size doesn’t matter, what about money? We made sure that our sample included both wealthy and not-sowealthy cities. The results show that, in general, wealthier cities do come up with better strategies: A positive correlation exists between the economic performance of a city and its position in the Index. But being rich is not a prerequisite for success. Some cities with more modest per capita GDPs have also published very good strategies — cities such as Rio de Janeiro in Brazil, and Bhubaneswar, the capital of the state of Odisha in Eastern India. As featured in the 2017 Smart city, smart strategy report by global consulting firm Roland Berger
10 Pointers to Help Cities Develop a Smart City Strategy 1. Reevaluate the role of the city and its administration 2. Involve citizens and other stakeholders 3. Avoid isolated solutions — look beyond e-government and actively apply best practices 4. Encourage initiatives, self-sustaining business models, and other contributions from the private sector 5. Create a comprehensive data strategy and data platforms 6. Set up innovation labs to foster an inspiring ecosystem 7. Ensure data security 8. Involve infrastructure operators in designing, financing, and implementing initiatives 9. Gain political backing and integrate public feedback 10. Establish a coordinating body and a dedicated planning system
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Cyberthreats in a Nutshell: You Are Not Prepared Ruslan Yusufov, Director, Special Projects, Group-IB, Russia
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owadays, it is almost impossible to think of a modern person who does not own a range of different gadgets. Businesses and individuals use numerous services to communicate and cooperate, and store and analyze data. The more we utilize (and enjoy) the benefits of the digital era, however, the more exposed our society is to cyberthreats. The annual damage to the global economy from cybercrimes in 2017 was almost USD 600 billion,a and cyberattacks are the reason for approximately five billion leaks occurring daily,b which may include individuals’ personal data, user credentials, credit cards, sensitive data related to corporate and governmental infrastructure, and corporate secrets. As such, the very pertinent issue of cybersecurity should be approached with thorough sobriety. Today, every piece of data has value on the black market, as it can be used to the financial benefit of cybercriminal masterminds. Hackers’ major motivation is either money to be stolen or information that can later be sold or used for blackmailing. Marketplaces in the Darknet, an anonymous and encrypted internet, are extremely active; communities of cybercriminals involve millions of actors, with Russianspeaking cybercrime leading the pack. The internet has become an extremely aggressive area and one becomes a potential victim due to the simple fact that one is online. Cybersecurity begins with understanding who threat actors are, what they do, what motivates them, and which tools they use. Recent ransomware epidemics and major breaches of international corporations prove that the approach of these institutions to security has been inadequate all along. A system administrator is not a cybersecurity officer, and firewalls and antivirus software are only one part of the whole picture; they are not enough. In the same manner that you involve lawyers to manage an M&A deal and tax consultants to arrange a proper corporate structure, it is equally important to entrust security issues to experts in the field. According to global bank UBS, at least 15% of family offices globally experienced cyberattacks in 2016. Most
high net worth individuals (HNWIs) and family offices need a cyber consigliere — a person or an authoritative cybersecurity company that understands what threats are uniquely relevant to an individual or business and which are the best methods for protection. At this stage, it is necessary to build the correct and safe infrastructure for the company/family office, to build interaction between employees and partners through encrypted channels. For a business, most importantly, it is vital to establish a proper mindset and understanding among all staff members that cyberthreats are real and relevant. No matter how protected the infrastructure is, human beings are still the weakest link. Intrusions commonly involve social vectors and attacks on HNWIs begin with the closest circle: personal assistants, partners, advisors etc., as they all have access to sensitive data and information. Group-IB data reveals that about 80% of attacks begin with phishing: the attacker pre-selects the target and tries to gather as much information about the individual as possible in order to increase the likelihood of success. Clouds are another potential threat, especially iCloud or Google Accounts. By obtaining access, an intruder can make a copy of the smartphone/laptop/tablet along with all correspondence, notes that often contain PIN codes for bank cards, personal photos, and so on. This list is unique for everyone. After hackers obtain the information, they can blackmail you or sell the data to third parties such as rivals. Even if you personally observe the rules of digital hygiene, employees and third parties tend to have access to sensitive information. So, should they fail to follow these basic rules of cybersecurity, it might lead to harmful circumstances. If an employee unknowingly opens a malicious phishing email, follows a fake link, or opens a malicious file masked as an invoice, it could result in a hacked mailbox and consequently compromised correspondence, contacts, passwords for different services, calendar, cloud storage, and other personal data.
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This happened not long ago to a highly influential Russian immediately after the phone appeared on board, the Wi-Fi businessman. A cyberattack on his personal assistant led disconnected, and the vessel’s control was restored only after to the leaking of an archive of mail correspondence for the removing the SIM card from the device. past nine years. Data measuring 13 GB and consisting of Even if you build a cyber fortress around yourself and over 10,000 letters containing confidential information your personnel, it is also essential to take care of those who related to the activities and assets of the business, as well have authorized access to your sensitive information and as his partner’s business, became partially public. As if that data. This typically includes service providers such as legal, wasn’t enough, the entire package was sold on the black financial, insurance, and educational experts. market to an unknown party. In the field of cybersecurity, it is also important to ensure There are several methods aimed at preventing such that your business is protected against interrupted processsituations. Group-IB recommends conducting special es. Major recent ransomware attacks — such as WannaCry, trainings for employees and raising the level of awareness NotPetya, and Bad Rabbit — not only caused financial about cyberthreats, cybersecurity, and digital hygiene. In damage but also suspended the operations of large interaddition, it is necessary to use early threat detection solutions national corporations. According to various estimates, the for notification of security threats, malware, and breaches damage from just one WannaCry epidemic exceeded inside your network — in order to prevent intrusions, USD 1 billion. Maersk and FedEx each announced financial attacks, data leaks, and espionage — as well as threat losses exceeding USD 300 million due to NotPetya. intelligence solutions to discover threats and hacking activity The rapid development of information technologies exearly before they can harm you pands the possibilities of humaniand your business. ty; at the same time, it exposes it According to global Nevertheless, securing your to new risks. Every year, the risk castle is not enough. Similar to the of becoming a cybercrime victim bank UBS, at least Miranda warning: everything that grows, and it is necessary to pre15% of family offices you post can and will be used pare for any potential manifestaagainst you — even an inoffensive tions. Nowadays, cyber threats are globally experienced photo of a young girl with a yacht among the top two corporate risks cyberattacks in 2016 in the background (which went on across all industries;c they are the to fuel a corruption scandal) or a leading key risk for the banking photo of a private jet on a 10-year-old boy’s Instagram account sector and capital markets.d (which allowed unsavory individuals to determine where his Despite the pervasiveness of these threats, society and father had been for business negotiations). Businesspeople business awareness about possible threats among individuals nowadays need to understand what information about themis critically low. It is necessary to understand that the world selves, their businesses, and movable and immovable prophas changed. All information and finances are gradually erty is available on the internet and the Darknet. It is also moving online, to the internet. We observe that classical important to have an objective dossier on yourself based on financial crime has shifted into cyberspace. Thus, the issue open and semi-open sources and to understand what risks of cybersecurity should be taken seriously at each level: in this exact information exposes. Losing control over this data the family, in businesses and NGOs, and by governments can lead to financial and reputational damage. and society in general. It is easier to prevent a fire than to As we continually move toward the era of the Internet of extinguish it. Things, we will progressively learn how to control toasters, References vacuum cleaners, and yachts, even airplanes, remotely. In the a James Lewis, ‘Economic Impact of Cybercrime — No Slowing case of yachts, for example, hackers are increasingly able to Down’ McAfee and the Center for Strategic and International access navigation controls without leaving any traces, with Studies 2018 b breachlevelindex.com the story of a Chinese businessman’s hacked vessel serving as c Christina Hubmann, Heidi Polke-Markmann, Patrik just one illustration. Fortunately, an accident was avoided Vanheyden, ‘Allianz Risk Barometer — Top Business Risks for despite the yacht ceasing to respond to the captain’s commands. 2018’ Allianz d The alleged cause of the malfunction was the hacking of the ‘Pulling Fraud out of the Shadows: Global Economic Crime and Fraud Survey 2018’ PwC yacht owner’s mobile device. The chief engineer noted that
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n 2015, a Concorde fan group comprising former pilots and frequent fliers, called Club Concorde, raised USD 186 million to restore two of the legendary commercial supersonic aircraft just over a decade after it was discontinued. Today, the group is even constructing an exhibition platform over the River Thames, next to the London Eye, where visitors can access bars, a memorabilia shop, plus an aircrew presentation area. While Concorde nostalgia persists, technological developments within the field of supersonic air travel have dwindled significantly over the past few decades as concerns about such aircraft’s environmental impact have increased, specifically regarding the loud noise of their sonic boom. However, developments have quickly picked up steam within the past year few years, especially with the US’ National
Aeronautics and Space Administration (NASA) recently awarding a related contract to American aerospace company Lockheed Martin. Together, these longtime enthusiasts and aeronautic heavyweights will develop and demonstrate a piloted, large-scale supersonic X-plane while crucially reducing the loudness of a sonic boom to that of a “gentle thump”, as NASA likes to call it. NASA’s supersonic ambitions were first revealed when it made headlines in 1947 with its Chuck Yeager-toting Bell X-1 aircraft becoming the first recorded manned plane to exceed the speed of sound (or Mach 1). This speed means that such an aircraft can travel from London to New York in three hours. Popular commercial aircraft such as the Boeing 747, in comparison, reach a top speed of 907 km an hour and take eight hours to travel between the two cities.
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IMAGE: airandspace.ir
Reigniting the Development of Supersonic Flight
Above: On display at the Royal Air Force Museum Cosford, UK, is Fairey Delta FD2 WG777, which is one of two aircraft to have broken the world speed record in 1956
However innovative these tests were, US government support for supersonic transport ultimately faded mainly due to concerns about its commercial viability at the time. Though supersonic transport first attracted national attention because of its adverse environmental impact (the noise of the sonic boom and stratospheric pollution), in the end, congressional support was withdrawn mainly on the grounds of government priorities. The first commercial supersonic aircraft — Concorde, the British–French supersonic passenger airliner — operated from 1976 until 2003. The Concorde had maximum speeds of Mach 2.04, with seating for 92 to 128 passengers. Initially, one-way tickets from JFK to Heathrow were roughly USD 1,500. In the early 2000s this went up to USD 7,000. Again, advancements in this area subsided when British and French officials announced the retirement of the Concorde in April 2003, citing a drop in air travel following the terrorist attacks of 11 September 2001 and rising maintenance costs overall, ending 27 years of service.
The Race for Commercial Supersonic Travel Today
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Fast forward to 2018, and the conversation about commercializing supersonic air travel is back on the table. A big interest has developed after US President Donald Trump’s administration decided to commit funds to NASA earlier this year, with NASA now officially continuing the development of the supersonic X-plane. Lockheed’s experimental aircraft is expected to be operational by 2021 and will have a top velocity of 1.5 times the speed of sound, or about 1,600 km per hour. Although Lockheed Martin won the NASA contract to build a quieter supersonic jet, it is not the only enthusiast vying for potential future market share.
Lockheed is also in partnership with Aerion Corporation, a business jet startup backed by Texas billionaire Robert Bass. The company is working on a jet design, called the Aerion AS2, that would fly over land at just under the speed of sound and then speed up to Mach 1.4 over the ocean, where it can afford to be loud. The company is currently taking orders, banking on deposits from high net worth individuals to help finance the project. Boom Technology Inc. is also developing a supersonic passenger jet. The Colorado startup has attracted investment from Japan Airlines Co. and support from the multinational conglomerate General Electric. Boom’s XB-1, which aims to carry between 45 and 55 passengers, estimates that its aircraft’s fares would be 75% lower than the original Concorde’s and comparable to current business class tickets, due to its better fuel efficiency. Putting the planes in a hypothetical race, Boom takes the lead. The company notes that a flight from New York to London will be possible in only 3 hours 15 minutes; Aerion’s plane will take 4.5 hours. However, it’s not only speed that matters, as many companies are differentiating themselves by incorporating ultra-luxury and high-tech comforts. Headquartered in Boston, the startup Spike Aerospace’s S-512 offers potential flight times between New York and London of 3.3 hours. It can accommodate 12 to 18 passengers and, due to its windowless design, offers a cabin with a panoramic digital display of the outside world. This so-called Multiplex Display is one of the jet’s distinguishing features. The company website notes that passengers can control these displays using a smartphone or tablet as well as intuitive touchpads at every seat. The screens can also show anything from real-time 360-degree views outside the jet to screencasts from a laptop to movies on demand, ensuring a completely immersive experience. Although next-generation supersonic travel is set to usher in a new era of air travel in the next decade, other technologies may hit the skies sooner. In December 2017, aerospace manufacturer SpaceX’s CEO Elon Musk presented, at the International Astronautical Congress, his rocket system for long-distance travel on Earth. The system promises that passengers could travel from Hong Kong to Singapore in 22 minutes and from London to Dubai or New York in only 29 minutes. The company plans to have its city-to-city travel up and running within the next decade. At the same time, NASA is dedicating more research funding to hypersonic travel, which refers to airspeeds that exceed Mach 5 — more than twice as fast as Boom’s XB-1.
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Stem Cell Technology: Preserving Your Future Today
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tem cells are the master cells for every tissue and organ of our bodies. They can be considered a personal and precious cell reservoir for each individual — the building blocks of our body. During our life, we continue to rely on our stem cells to regenerate injured tissues and to replace cells that every day are damaged or lost. They possess the peculiar property of self-renewal: that is, they divide in such a way that they generate identical copies of themselves or differentiate into any kind of specialized cells in our body, depending on the microenvironment and the stimuli to which they are subjected. Despite the great potential of these kinds of cells and their fundamental role in preserving our body, stem cells can mutate during life, becoming malignant, causing severe diseases, or simply losing their potential. Just the fact that they are subjected to aging causes a reduction in the number and efficacy of stem cells during our life. For
these reasons, harvesting and banking stem cells when they are young and healthy is very important. In this sense, umbilical cord blood, a potent source of hematopoietic stem cells, represents the much easier and safer way to collect the youngest stem cells. The procedure consists of harvesting cord blood from the umbilical vein at birth, the process of which poses no risks for mother or baby. Typically, the sample is then shipped to the responsible laboratory in order to separate and store cord stem cells for future medical applications. The first successful cord blood transplant was performed in 1988 under the direction of American scientist Dr. Hal Broxmeyer. A six-year-old boy affected by Fanconi’s anemia was treated and cured using his sister’s stem cells. That young patient is now in his early 30s and leads a healthy and normal life. In the early 90s, researcher Pablo Rubinstein from the
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Elisa Macchi, Scientific Collaborator, Swiss Stem Cells Biotech SA Valeria Rossella, Scientific Collaborator, Swiss Stem Cells Biotech SA Veronica Albertini, Chief Scientific Officer, Swiss Stem Cells Biotech SA
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New York Blood Center established the first public cord blood bank in the US. Shortly afterwards, the first cord blood transplant from an unrelated donor was performed on a four-year-old boy with T-cell leukemia. In the following years, cord blood was utilized as an alternative to bone marrow to treat different disorders such as hematological malignancies, genetic immunodeficiency syndromes, bone marrow failure, hemoglobinopathies, and metabolic diseases. To date, more than 400,000 transplants have been performed. Currently, about 800,000 unrelated stem cell samples are stored in public banks while five million are stored in private ones. The main clinical limitation of cord blood samples is the reduced number of stem cells that can be harvested, thus influencing the transplant outcome. Wagner and colleagues partially mitigated this issue by using two umbilical cord blood units for each transplant, and, more recently, many groups have been developing multiple methods of cord blood stem cells expansion to obtain a large quantity of cells for transplant. In addition to hematopoietic stem cells, another group of cells that is rising in importance is mesenchymal stem cells. These cells can be easily isolated both from Wharton’s jelly, a cord tissue jelly localized around umbilical cord blood vessels, and from adipose tissue, which can be collected easily through liposuction also in adults. The ability to differentiate into bone, cartilage, and fat has created a great interest in using mesenchymal stem cells in orthopedics, ophthalmology, neurosurgery, and cardiology. Thanks to their immunoregulatory properties, these kinds of cells are also under clinical study to treat immune-related disorders such as graft-versus-host disease following bone marrow transplant and autoimmune diseases such as multiple sclerosis, type I diabetes, and scleroderma. Mesenchymal stem cells can also be co-transplanted with hematopoietic stem cells to ameliorate the engraftment and increase transplant success in hematological malignancies. At present, almost 5,000 clinical trials worldwide are testing stem cells for different pathologies as reported on the ClinicalTrials.gov registry. Numerous studies have indicated that stem cells isolated from older donors are neither as prevalent (in terms of the number of cells in the sample) nor as potent as those isolated from younger, healthier donors. Stem cells collected from older or disease-afflicted donors seem less able to differentiate into different cell types needed for tissue repairing, have a reduced capacity to proliferate and expand into numbers of cells that would allow for multiple treatments, and are more prone to dying during culture and use. In light of this, it is
important to preserve cells as soon as possible during one’s life. Nevertheless, how these cells are collected, processed, and preserved is also very important. All the steps of this important process have to be performed by well-trained people, using validated and approved procedures and materials. Starting from collection through to sample transportation, manipulation, and quality controls in place, everything needs to be validated and controlled each time. Quality assurance plays an important role in the development of products and services in pharma. In fact, a laboratory that processes and stores stem cells is considered a pharmaceutical company, and international law recognizes stem cells as a drug. Quality assurance refers to the step-by-step process of examining whether goods and services meet specific quality, efficacy, and safety requirements, as per their intended use. Some national and international standards are used as guidelines to ensure that a company’s quality assurance system is both effective and ready to be implemented. For a cord blood bank, for example, the most important and worldwiderecognized standard is issued by FACT-NetCord, which was established in 1999. A facility’s ability to store stem cells in a FACT-NetCord-accredited cord blood bank is assurance that the facility strives to achieve the highest quality care for cord blood bank programs. This is particularly important for physicians, as they are guaranteed that the samples coming from the facility are safe and approved for a transplant. In addition to international accreditations, every laboratory that processes and stores stem cells has to be authorized at national level. In Switzerland, the surveillance authority for medicines is the Swiss Agency for Therapeutic Products (Swissmedic), which inspects facilities every two years to ensure compliance with current standards. Stem cell research is rapidly evolving, holding great therapeutic potential for the treatment of many diseases that were once considered incurable. Research on stem cells has given rise to a great number of discoveries; the improvement and reconstruction of damaged cells or tissues by stem cells are the major findings reported in scientific literature. More impressively, gene therapy or organ development using stem cells is a promising future medical perspective. On this basis, stem cell banking becomes more and more important, which means a greater focus must be placed on the ethics surrounding it. Crucially, informed consent should be obtained before stem cell collection, all medical benefits and/or clinical trials status must be clearly explained to patients, and the quality, traceability, and safety of the cryopreserved samples must be guaranteed. In this regard, a FACT-NetCord accredited bank makes all the difference.
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GLOBAL LIFE
Above: Luca Rubinacci (left) — of renowned tailoring lineage — and his father, Mariano (right), share an extremely close bond both professionally and personally, with Rubinacci senior playing a natural mentor role. The entire Rubinacci family is indeed close knit, as Luca’s sisters are also involved in the running of the family’s globally esteemed tailoring business
Global Citizen
Luca Rubinacci
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hen Luca Rubinacci reminisces about his childhood, it is not nannies and babysitters that he recalls looking after him. Rather, it’s the tailors employed at his father’s business that he credits with shaping him into the successful businessman he is today. While other six-year-olds
were being treated with sweets and told to “leave the scissors alone”, Luca’s pockets were being stuffed with pieces of fabric and he was cutting out patterns. It is no wonder then that he speaks of tailoring and his family business with such deep affection and resolute passion for future ambitions.
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IMAGE: Supplied
“I don’t know what my exact plan is for the future but whatever I will do, I will do it with passion. My father always said that you must do what you love with passion, then it will be successful”
IMAGE: Supplied
IMAGE: Supplied
GLOBAL LIFE
Born in Naples, Italy, in 1981, Luca is the son of celebrated second-generation tailor Mariano Rubinacci, whose father, Gennaro Rubinacci, established London House in 1932. Gennaro is believed to have made bespoke suits for the likes of Italian actor, author, and poet Eduardo de Filippo. London House later became Rubinacci when Mariano took over the business in 1961. Today, Luca and his father run the boutique tailor alongside Luca’s mother and three sisters — a real family affair. With a love for the outdoors and sporting taking root in his early schooling years, it initially seemed that Luca would pursue a career in sailing (at some point he was on course to the Olympics). It was when he was in his early 20s though that Luca made the decision to join the family business, not out of pressure and expectation but rather a genuine interest in the family’s traditions and professional heritage. In fact, Luca recalls that, when he joined Rubinacci, his father made it clear that Luca had to establish his own client base, often reminding him that “my clients are my clients, build your own clientele”. Nevertheless, Luca took on the challenge and followed his father’s every footstep with a determination to learn the tricks of the trade his family had mastered over generations. To assist him, Luca’s father suggested that he study abroad, concerned that local tailors would not treat him fairly (due to his family name) and thus deprive him of real learning. The family selected a neutral place and off Luca went to be instructed at Kilgour (Savile Row). He spent a year in London and returned to Italy in 2002. Over 15 years later, Luca is now the brand’s face and Creative Director, and he heads up the Milan branch of the business (the London and Naples branches are managed by his sisters). But Rubinacci’s is a truly global firm, with foreign clients accounting for roughly 90% of the firm’s business (which happens to be about 900– 1,000 bespoke suits a year). A number of reasons spring to mind when pondering the reasons behind the family’s current success. Perhaps one of the most salient is the profound sense of appreciation of customer satisfaction and service care that Luca carries. It’s evident in the way he speaks. “Clients know [our] product is fantastic, but what they come for is the experience, the knowledge we give. It’s very important to listen to your client and assess their needs. The essence of tailoring is to create a lasting relationship — you don’t make a suit to create just one suit, it’s to build a lasting relationship.” Even though
Above: Luca is now at the forefront of leading the Rubinacci brand, working diligently to elevate the classic brand’s international footprint
Luca has expanded his client base, with booming interest in Dubai, he is mindful that he continues to be a representation of the Mariano brand too: perhaps because of his father’s gentle, but frequent, reminders that “Luca, your clients are still my clients”. It’s this value of customers and respect for the family name that continues to set the Rubinacci brand apart and speaks volumes about Luca’s professional and personal values. An active, and avid, social media user, Luca has managed to establish a strong digital presence: he has over 15,000 followers on his Instagram account, on which he regularly flaunts his stylish and creative outfits (mostly bespoke suits by Rubinacci, of course) and shares fashion and style tips. It is this propensity to ‘try’ that makes Luca a valuable
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member of the Rubinacci team, distinctly advancing the handmade so we need to be very precise. You always have to be on point.” brand and its success. Recently, the special occasion happened to be Luca’s It goes without saying that Luca is considered one of the nuptials to Spanish dentist Maria Barros Paredes. best-dressed men around today; he is certainly not afraid to Rubinacci senior was the obvious, and likely only, choice try new and unusual color and fabric combinations. About his dressing choices, he says: “My personal style is always for a tailor to create Luca’s unique look for the day. The evolving.” Luca’s looks are not only a reflection of his daring, newlyweds will honeymoon in Malaysia, where Luca’s flexible personality but come back to penchant for sports and the always having clients at the forefront outdoors will be duly satisfied. The essence of of his thoughts, as he considers In addition to skiing, Luca partichimself a “window” for the client. A ularly enjoys hiking and surfing, and, tailoring is to create when he is home, often steals time source of inspiration, if you will. a lasting relationship; from his demanding schedule to esEven so, he is never at pains to acknowledge the team behind cape to the mountains and “recharge”. you don’t make a suit him, which comprises roughly 45 If Luca is not outdoors or playing tailors. Luca delightfully considers some sport, you will likely find him to create just one suit his work environment to be entertaining guests and preparing his quintessentially characteristic of favorite zucchini, aubergine, and a family business: that is, everyone supporting each other shrimp pasta dish with some sea bass and a rosé on the side. around special occasions. The team regularly meets for Reflecting on his personal philosophy, Luca shares: classic Italian dinners and there is a precious sense of “Quality is my personal philosophy. Even if it is a stupid style in a stupid color — the quality must be good. Quality camaraderie among them. However, this never gets in the way of delivering quality pieces for clients, which in all aspects of my life.” Is there any wonder why the Luca insists is priority number one. “We have very high Rubinacci brand enjoys growing international prestige? standards and we are very precise. All our products are Surely not.
70 | Global Citizenship Review
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Property
W
ith interiors replicating the pages of Architectural Digest, the opulent 98 Wireless is one of the most desired residences in the heart of the Thai capital. The development is situated at the crossroads of Bangkok’s prestigious commercial, hospitality, and diplomatic districts and is destined to be a legacy for the city’s elite. The latest residential property venture by one of Thailand’s largest developers, Sansiri, is surrounded by exclusive retail centers, foreign embassies, high-end hotels, and modern high-rises. Meanwhile, the leafy streets leading to Lumpini Park, the area’s largest green space, provide a tranquil reprieve from the city’s hustle and congested traffic. Designed to pay tribute to its impressive surroundings, the ceilings of 98 Wireless tower above any of those of other residential structures in the city and dramatically, though fittingly, add to its sense of grandeur. The building’s Beaux-Arts architecture — which has its roots in Roman
times with later reinterpretation by the French and Americans — is the inspiration for the grand entrances, vintage details, and modernized fittings of the project. This classical style, which is a reflection of European luxury, is a rare sight in Bangkok and provides a sense of solidity and tranquility that sets 98 Wireless apart from other structures in the city. With a price tag of USD 17,576 per square meter, the apartments are currently among some of the most expensive in Bangkok — and without a doubt the most luxurious. Ralph Lauren Home pieces, butlers to see to every resident’s unique requirements, a private elevator for each unit, as well as a Bentley limousine chauffeur service are all part of the unit price. Built on a 3,200 m 2 plot that was previously a private home and stables, 98 Wireless is divided across 25 floors, with its 77 bespoke luxury apartments ranging from 119 m 2 to 245 m 2 . The two penthouses measure 553 m 2 .
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IMAGE: Sansiri
98 Wireless • Bangkok
IMAGES: Sansiri
IMAGE: Sansiri
GLOBAL LIFE
The ultimate showcase of the development, the super penthouse called ‘The One’, spans an impressive 948 m 2 across the top floors. Naturally, it boasts a panoramic view of the building’s awe-inspiring surroundings. 98 Wireless captivates the senses from the very moment you arrive. The grand drop-off area, which resembles the likes of those at top hotels in New York and London, leads you to the lobby, which features a mesmerizing, handmade, Ralph Lauren crystal chandelier. The timeless and elegant materials used throughout the interiors are of the best in the world: solid white oak herringbone floors, rare mahogany door panels, and exquisite Moleanos limestone (all the way from Portugal). The residences also feature appliances and fittings of the highest quality standards including bath fittings by Lefroy Brooks and Kallista, SieMatic kitchen cabinets, and appliances from Sub-Zero, Gaggenau, and Siemens. To further complement the Western-inspired aura of 98 Wireless, the lobby — along with all the apartments — have been brought to life with the vision of sought-after and award-winning New York-based interior designer Anne Carson. In an eloquent juxtaposition of East meets West, 98 Wireless is more than just a luxury property development: it is part Fifth Avenue and part Kensington in the heart of Southeast Asia. Those privileged enough to call this their home can rest assured that only the best comes as standard.
Above and opposite page: Sansiri’s stunning 98 Wireless development in Bangkok, Thailand, is the epitome of fine, luxury living, towering above both local and international standards
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GLOBAL LIFE
Above and opposite page: Al Maha Desert Resort and Spa is hidden within the glorious dunes of the Dubai Desert Conservation Reserve, meaning guests at this exclusive destination can delight in tranquil, uninterrupted downtime
Marco Polo
F
or those among us who are daring enough to venture into the shapely dunes of the Dubai desert expanse, there is a surprising hideaway known as the Al Maha Desert Resort and Spa, a Shangri-la for individuals needing respite from the consuming bustle of city living. Al Maha is a delightful oasis that offers, in abundant yet equal parts, tranquility and adventure in the magnificent setting of the Arabian desert. Decorated in sandy shades and with rich textures, Al Maha’s Bedouin-style tent chalets are the quintessence of desert luxury, providing a grand display of traditional carpets, wooden chests, and quaint ornaments, which make for a
truly warm and authentic reception. Each chalet — one can choose between the Bedouin, Royal, Emirates, and Presidential suites — has a private plunge pool and offers complete discretion without hindering views of the breathtaking desert scene, the highlight of anyone’s visit to Al Maha. The Arabian desert surrounding Al Maha falls within the jurisdiction of the Dubai Desert Conservation Reserve, meaning the Arabian oryx, camels, and various gazelles will be your neighbors for the duration of your visit. With three dining options, the crowning glory of every meal at Al Maha is indeed the opportunity to take in the sprawling surroundings. Al Diwaan is the main restaurant
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IMAGE: Kiwi Collection
Al Maha Desert Resort and Spa
IMAGES: Kiwi Collection
IMAGE: Kiwi Collection
GLOBAL LIFE
and offers fine dining on the hotel’s veranda, while Hajar Terrace Bar, situated a level above Al Diwaan, is the perfect spot for cocktails and canapés. For the more adventurous, there is the dune dining, picnic style, option under the Arabian sky complete with flame torches and Persian carpets. If the urge to do some activity beckons, Al Maha has a pleasing range of leisure options from which to select. A firm favorite is falconry, which sees guests embarking on an early morning mission while it is still cool to handle these birds of prey under guided supervision. Falcons are the UAE’s national bird and the activity of falconry is steeped in history and culture. Other activities include Arabian horse riding, dune drives, archery — which also has a long heritage in Middle Eastern and Bedouin culture — camel trekking, and wildlife safaris. There is also the option to do some shopping at the hotel’s Gallery store, where one can find local, original artefacts as well as an array of antiques, rugs (Caucasian, Kashmiri, and Persian), jewelry, and rare antique weaponry such as traditional Khanjars (Omani knives). With classic Arabian hospitality, the resort’s Timeless Spa offers treatments that fuse Middle Eastern and Southeast Asian aromatherapy principles to offer rejuvenation and restoration. There is also a hydrotherapy bath and a Rasul chamber for authentic Arabian body treatments. Although less than an hour away from downtown Dubai, Al Maha leaves visitors feeling that they are worlds away, offering in royal fashion an opportunity to connect with nature and the classic heritage of the Arabian world.
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GLOBAL LIFE
Culinaria
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he launch of the Michelin Guide Bangkok in late 2017 has thrust Thailand’s culinary scene to the forefront of international dining prestige, sidelining the country’s worthy reputation as a street-food haven and seeing it enter the glorious ranks of gastronomic esteem globally. One of the restaurants leading this charge is Paste, a traditional-but-modern Thai-style eatery in the heart of Ratchaprasong district. Established in 2015 by Thai-born Bongkoch ‘Bee’ Satongun and her Australian husband Jason Bailey, the founders of Paste pride themselves on the restaurant’s heirloomstyle cuisine, the essence of which is deeply grounded in traditional recipes, ancient flavors, and authentic cooking methods. For inspiration, head chef Bee often turns to centuries-old recipe books (some dating as far back as 1870 ad), the sources of which are closely guarded, and frequently embarks on research expeditions to rural Thailand in pursuit of the rarest, fine-quality ingredients. Of this Bee says: “Thai food is all about the freshness of the ingredients and it is important that these come from the right area.” Bee, who has been cooking since the age of five, was awarded the coveted title of Asia’s Best Female Chef 2018, an indication of the immense talent with which she leads Paste’s kitchen, while Jason manages the restaurant’s operations. With offerings such as ‘chive root salad with live lobster from the tank, morel, Asian citron, air-dried seaweed, and white turmeric’, ‘watermelon rind and fish roe soup with sea bass, and jicama dumplings’ and ‘lon of spanner crab,
Nan province salted duck egg, fresh coconut milk, hairy eggplant, and lime leaf’, Bee’s main objective is to preserve the country’s wealthy culinary legacy. “Thai cooking has a long history, so you need to respect those who wrote that history before you,” she says. “Looking in the past is me trying to understand what our ancestors were trying to communicate through their ingredients and flavors.” The Paste team’s philosophy is based on the 80/20 rule, meaning that dishes maintain 80% of their heritage with a 20% dash of innovation. The Michelin-starred eatery is located at Gaysorn Village mall but as soon as one enters, one forgets one’s location, taking in the restaurant’s paper and bamboo furniture and its main design attraction — an elegant wall-high silk cocoon sculpture. Despite its pleasing aesthetic and atmosphere, presentation of meals is not a high priority at Paste. “We want to keep the taste authentic. We feed our creativity into the form, so the presentation might not be what people are used to, but the flavor stays true,” says Bee. The flavors at Paste are indeed authentic and true, so it is no surprise that this endearing restaurant is reinvigorating Bangkok’s classic food scene. In today’s digital and highly modernized world, the team at Paste are doing a commendable job of paying homage to traditional Thai culinary mastery. Paste’s opening hours are 12:00–14:00 and 18:30–23:00. To make a reservation, phone +66(0)2 656 1003 or email info@pastebangkok.com
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IMAGES: Paste
Paste • Bangkok
IMAGES: Paste
GLOBAL LIFE
Medicus
Susannah Rose
A
2017 study published in JAMA Internal Medicinea Rose’s interest in bioethics developed when, as a social worker, found that patient advocacy groups are less biased she referred clients with cancer to patient advocacy groups than patients prefer them to be. Based on anonymous that she trusted. She worked as a clinical social worker (for survey results, the study confirmed that advocacy groups which she has an MSc from Columbia University) and have little independence and allow their policies to be researcher at Memorial Sloan Kettering Cancer Center in influenced by third-party donors. Leading researcher and New York City, specializing in the psychosocial issues custodian in the field of bioethics Dr. Susannah Rose, who surrounding cancer. What she expected from these patient led this research, reassures us, however, that the industry is groups was unbiased guidance and advice, but she soon much more nuanced than this. realized that these groups were potentially receiving funding Advances in biotechnology and healthcare have been from big pharmaceutical companies. She began to investigate growing and evolving rapidly, begging for the need for and soon found that two-thirds of patient advocacy research into the ethical, legal, and social implications thereof. organizations reported receiving funding from big pharma. At the forefront of this field is Rose, who specializes in Although the implications of these relationships require applying normative ethics to healthcare policy-making in further study, many fear that advocacy groups in such a the US. Rose, who completed her PhD in Health Policy and position have lesser agency to express their concerns regardEthics in 2010 at Harvard University, ing issues such as patient mistreathas developed expertise in direct ment or misinformation. To illusdata collection methodologies and trate, a diabetes advocacy group The relationships quantitative data analysis. might start endorsing sugary foods between medical Currently Scientific Director of and protect the market of its donor, Research in the Office of Patient Extherefore exploiting those from practitioners and industry perience and Assistant Professor in whom it has gained trust. However, require greater transparency the Department of Bioethics at Cleveas Rose stresses, making a sweeping land Clinic in the US, Rose describes statement about corruption because her role as “being responsible for of this link does not consider the developing and leading health-services research focused on nuances of the different types of relationships between patent/family perspectives”. Prior to this she was Director hospitals, researchers, physicians, and big pharma. “Those of Bioethics Research and Policy and held a fellowship at relationships may in fact benefit patients, enhance medical her alma mater. research, and help advance patient care,” she explains. She has published two books that focus on helping In this case, then, the relationships between medical pracpatients and family members cope with cancer and has titioners and industry require greater transparency. Perhaps published and presented in academic venues on topics even more important, though, is the commitment of profesrelated to conflicts of interest in medicine, health policy sionals with expertise in seeing beyond smokescreens and ethics, oncology, and clinical bioethics. The titles of some providing empirical data to speak truth to power. The global of her more prolific work include ‘Patient Advocacy Orcommunity is all the richer thanks to the likes of Rose. ganizations: Institutional Conflicts of Interest, Trust, and Trustworthiness’, ‘Effect of Financial Relationships on Reference a SCleveland Clinic, ‘Institutional Conflict of Interest: Not Just a the Behaviors of Health Care Professionals: A Review of Relationship but a Set of Circumstances’ (Consult QD, 4 the Evidence’, and ‘Relationships between Authorship February 2016) consultqd.clevelandclinic.org/institutionalContributions and Authors’ Industry Financial Ties among conflict-interest-not-just-relationship-set-circumstances/ accessed Oncology Clinical Trials’. 18 May 2018
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GLOBAL LIFE
Books
Enlightenment Now: The Case for Reason, Science, Humanism, and Progress Steven Pinker Viking
at least consider Pinker’s reasoning. Truly, Pinker does a monumental job of defending with clarity his progressive ideals against modern philosophers, critics, and politicians to showcase exactly how humanity has progressed since the application of reason and science. Pinker, a professor of psychology at Harvard University, is more focused on how we should be thinking as opposed to what we think. When pondering the great global threats of our time (think food security, climate change, and war), Pinker urges readers to change the way they think about these, assuming a pragmatic problem-solving approach as opposed to being crippled by fear and undigested anxiety. Written with distinct flair and intellectual force, Enlightenment Now: The Case for Reason, Science, Humanism, and Progress makes a solid case for the powers of reason and science: the principles required to challenge and solve our problems and continue along the path of progress and positivity. Described by many of the world’s leading economic and scientific publications as “magnificent”, “uplifting”, and “honest”, Pinker’s latest offering presents a refreshing challenge to what you think you know and, as you turn the last page, you will be instilled with a new sense of hope for our world.
Pinker’s gift is to challenge us not only to update the Enlightenment but to think beyond it. Caroline Winterer, Anthony P. Meier Family Professor in the Humanities and Director of the Stanford Humanities Center, US
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IMAGE: Viking
T
outed as Bill Gates’ new favorite book of all time, Enlightenment Now: The Case for Reason, Science, Humanism, and Progress presents a scientifically woven solution to some of the most formidable global threats of our time. In a time in which fundamental questions are being raised about the progress of mankind and the unraveling of the fiber of society, author and cognitive scientist Steven Pinker asks the reader to take a step back from the negative psychological influences circulated in the press. Pinker believes that using the enlightenment of science and reason is the solution to overcoming doomsday thinking and paving the way to happier and freer lives for all. The answer lies in the data — 75 intricately fashioned graphs, to be exact — which show how critical elements of survival such as health, peace, safety, knowledge, and happiness are increasing across the world. Pinker believes this progress is not attributed to some force beyond our control but rather a gift of the Enlightenment: the belief that science and reason can be applied to help humanity to thrive. While you would not be judged for thinking this concept leans towards the naïve, Enlightenment Now: The Case for Reason, Science, Humanism, and Progress provides a seminal argument that will make even the most devout naysayer
Around the World in 80 Trades
IMAGES: Macmillan; Bantam Books Trade Paperbacks; Little A
IMAGE: Viking
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The Grand Design
The Sky Below: A True Story of Summits, Space, and Speed
Conor Woodman
Stephen Hawking and Leonard Mlodinow
Macmillan
Bantam Books Trade Paperbacks
Little A
The trading of goods is the most traditional and ancient type of economy and is still used by many cultures around the world. In Around the World in 80 Trades, cultural exchange and fair-trade economist Conor Woodman puts his negotiating skills and bargaining wits to the test against some of the world’s oldest trading cultures. Going all in, Woodman sold his house to finance this extraordinary journey that sees him trading camels from Sudan for coffee in Kenya, trading the coffee for South African red wine, and using the proceeds to purchase Chinese porcelain. Inspired by the various encounters along his route, Woodman concludes that, regardless of geographical, language, or cultural differences, the values of profit remain the same. Part travel writing and part journal of an undercover economist, Around the World in 80 Trades takes the reader on a journey of discovery of cultural exchange and the human story of how the complex modern macroeconomic system came to be: face-to-face exchange.
Co-written by one of the greatest minds of our time, the late Stephen Hawking, The Grand Design is an impressively concise piece of work that presents new answers to one of life’s most fundamental questions: how did it all begin? It is this exact pondering that has fascinated and brought together the fields of theology, philosophy, and science since the beginning of civilization — if only to oppose them. In this new book, Hawking and co-author Leonard Mlodinow showcase the most recent scientific thinking regarding the universe with brilliance and simplicity, as only two incredible intellectuals can. The pair take the reader on a fascinating journey through the creation of history by observation, the concept of reality, and the multiplicities of quantum theory and how it relates to history and existence. A concise, surprising, and extravagant guide to the discoveries shifting our understanding of the world and challenging some of our most personal belief systems, The Grand Design will definitely enlighten and provoke.
Adventure, exploration, and innovation make up the spool around which this fascinating book is spun. The Sky Below: A True Story of Summits, Space, and Speed journals all the most epic journeys author Scott Parazynski has embarked on: from death-defying space quests to conquering the mammoth ascent up Mount Everest. Written with humor, passion, and inventiveness, the book gives the reader an exciting view into the life of an experienced astronaut, athlete, and ultimate explorer of earth and space. Parazynski, who holds a place in the Astronaut Hall of Fame, along with many prestigious NASA awards, is now a tech startup CEO and inventor. In this new role, he and his renowned planetary scientist wife, Meena Wadhwa, explore some of the world’s most extreme environments in search of innovation. In The Sky Below, Parazynski also shares more intimate tales of how he found true love and the joy and privilege of raising two beautiful children.
Scott Parazynski
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GLOBAL LIFE
Reflections
N
orwegian explorer and humanitarian Fridtjof Nansen’s name is perhaps most recognizable by the UN High Commissioner for Refugees Nansen Refugee Award that was named after him, which is awarded annually to an individual or organization that has dedicated their time and gone above and beyond the call of duty to help people who have been forcibly displaced from their homes. As the first High Commissioner for Refugees for the League of Nations, Nansen’s humanitarian contribution has left an indelible mark on society. Apart from his philanthropic values and pursuits, Nansen continues to be regarded as a prolific scientist. Nansen’s life began just outside Oslo, Norway, in 1861, where he was born to Baldur and Adelaide Nansen. His father was a lawyer and his mother is described as being highly active and athletic, providing the foundation for Fridtjof’s love for the outdoors, particularly long-distance skiing (he reportedly ventured as far as 80 km a day). In 1881, Nansen enrolled at the University of Oslo for studies in zoology and, in the following year, participated in a whale and seal hunting research expedition to the Arctic Ocean, marking the beginning of his heroic pursuits and scientific successes. Later in 1882, he was appointed zoological curator of the Bergen Museum, at which he had also begun studies in the central nervous system of lower vertebrates. The museum provided a compelling and intensive learning environment for the young student and he remained there for six years, completing his PhD in 1887. Nansen returned to the Arctic in that year and, together with a team of six, began a never-been-done-before
expedition to Greenland’s interior. Nansen devised a route that would see the team sailing from the country’s uninhabited east to its inhabited west over two months. Despite critics trying to dissuade him — labeling the attempt as foolishness — he persisted, braving temperatures of –45° C to climb to 9,000 ft above sea level. Upon his return in 1889, Nansen was appointed professor of oceanography at his alma mater and in 1908 he was awarded the chair in oceanography. In the same year, following the establishment of the Norwegian monarchy, Nansen was appointed Norway’s ambassador to Britain, an unlikely development that proved highly successful, as Nansen had natural skill in navigating diplomatic topics and relationships. In 1920, Nansen led a Norwegian delegation at the first assembly sitting of the League of Nations. It is believed that his contribution was so meaningful that the league appointed him High Commissioner for the Repatriation of Prisoners of War. The following year, the International Committee of the Red Cross appointed Nansen High Commissioner for Russian Refugees, tasked with assisting displaced peoples in Russia. In 1922, Nansen initiated the development of the Nansen passport, which was intended to allow refugees a measure of freedom of movement between countries and protect them from deportation. In recognition of his gallant humanitarian efforts, Nansen was awarded the Nobel Peace Prize that year. He died in 1930, after contracting influenza following a skiing trip. Symbolically, Nansen was buried on Norway’s official Constitution day.
I demolish my bridges behind me — then there is no choice but to move forward.
IMAGE: Wikipedia.org
Fridtjof Nansen
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OPINIONS | Global Passports and the Dilution of Citizenship
If there had to be only one Tonda Chronor
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