!"2"!
"! 34%"" 25!! %
-RVHSK&RQUDGZKRNQHZQR(QJOLVKEHIRUHKLVWZHQWLHVZDV
SULPDULO\ NQRZQ DV WKH ZULWHU RI VHD VWRULHV 2ULJLQDOO\ QDPHG -R]HI 7HRGRU
.RQUDG .RU]HQLRZVNL &RQUDG ZDV ERUQ WR 3ROLVK SDUHQWV LQ WKH 5XVVLDQ
GRPLQDWHG8NUDLQH+HEHFDPHDFLWL]HQRI(QJODQGVHWWOHGLQWKHDGRSWHG
FRXQWU\ LQ DQG GHYRWHG KLPVHOI WR ZULWLQJ &RQUDG¶V IDYRXULWH QDUUDWRU
0DUORZ VD\V LQ +HDUW RI 'DUNQHVV µ³, IHOW DV WKRXJK LQVWHDG RI JRLQJ WR WKH
FHQWUHRIWKHFRQWLQHQW,ZHUHDERXWWRVHWRIIIRUWKHFHQWUHRIWKHHDUWK´¶+2'
$JDLQ LQ /RUG -LP 0DUORZ ILQGV WKDW ³D EURRGLQJ JORRP OD\ RYHU WKLV YDVW
DQGPRQRWRQRXVODQGVFDSHWKHOLJKWIHOORQLWDVLILQWRDQDE\VV´/-7KH
DERYHTXRWHVDUHWZRH[DPSOHVRIWKHIDFWWKDW&RQUDG¶VPDMRUZRUNVDUHSODFHG
LQQRQZKLWHODQGV ,WLV WKXVLQHYLWDEOHWKDWWKHUHZLOOEHDQLQWHUDFWLRQEHWZHHQ
WKH ZKLWH DQG WKH QRQZKLWH UDFHV ,Q WKH SUHVHQW WLPHV WKH LQWHUSUHWDWLRQ RI WKH
OLWHUDU\DQGWKHFXOWXUDOWH[WVLVJHQHUDOO\DSSURDFKHGWKURXJKWKHSULVPRIFULWLFDO
WKHRU\ ,Q WKH FDVH RI &RQUDG WKH XVH RI WKH SRVWFRORQLDO WKHRU\ KHOSV XV WR
FULWLFDOO\ DSSUDLVH WKH HOHPHQWDO WKRXJKWV LPSODQWHG LQ KLV WH[WV OLNH $OPD\HU¶V
)ROO\ $Q 2XWFDVW RI WKH ,VODQGV 7KH 1LJJHU RI WKH µ1DUFLVVXV¶
+HDUW RI 'DUNQHVV /RUG -LP &KDQFH 9LFWRU\
7KH 6KDGRZ /LQH DQG 7KH 5HVFXH 7KH H[LVWHQFH RI
LQGLVWLQFWQHVVDSSDUHQWRSDTXHQHVVDQGVXVSLFLRQRI-RVHSK&RQUDGEHLQJELDVHG
RU XQELDVHG WRZDUGV WKH ZKLWH LPSHULDO KHJHPRQ\ FUHDWHV D VSDFH IRU WKH UH
UHDGLQJRI&RQUDGLDQVWRULHVIURPDSRVWFRORQLDOSHUVSHFWLYH
7KH GLVVHUWDWLRQ FRQVLGHUV WKH DERYH QLQH QRYHOV RI &RQUDG LQ ZKLFK KH
JLYHV DFFRXQWV RI WKH GHVWUXFWLYH HIIHFWV RI LPSHULDOLVW XQGHUWDNLQJ DQG WKH
VXIIHULQJVRIWKHPDUJLQDOSHRSOH&RQUDGWDONVDERXWWKHUHDOLW\RIWKHSURFODLPHG
P\WKV WKH XQVRXQG WKH VDYDJH WKH LQVHQVLWLYH DQG WKH UDSDFLRXV RXWORRN RI WKH
FRORQL]HUV WRZDUGV WKH FRORQL]HG ,Q $OPD\HU¶V )ROO\ DQG $Q 2XWFDVW RI WKH
,VODQGVVHWLQWKHUHPRWHVXUURXQGLQJVRIWKH0DOD\LVODQGV&RQUDGREVHUYHVWKH
QDWLYHV XQGHU VWUHVV GXH WR WKH GHFD\LQJ HQYLURQPHQW FUHDWHG E\ WKH PLQRULW\ RI
UXOLQJDOLHQV,QWKHVHILUVWWZRZRUNVKHDOVRWDONVDERXWWKHVHOIGLVFRYHU\RIWKH
WZRZKLWHPHQ $OPD\HUDQG:LOOHPVUHVSHFWLYHO\&RQUDG¶V7KH1LJJHURIWKH
µ1DUFLVVXV¶LVDWDOHDERXWDQLJJHUZKRYR\DJHVIURP%RPED\WR/RQGRQZLWKD
ZKLWHFUHZ2QWKHVHDWKHFUHZIDFHVPRUDOWULEXODWLRQVGXHWRDVWRUP²LQWHUQDO
DQG H[WHUQDO &RQUDG¶V /RUG -LP LV D WDOH RI D VHQVLWLYH \RXWK GUHDPLQJ RI
KHURLVP -LP¶V UHODWLRQVKLS ZLWK WKH QDWLYHV RI 3DWXVDQ KLV XQEHDUDEOH JXLOW DQG
KLV VXIIHULQJ ILOO WKH QDUUDWLYH ZLWK KXPDQ ZHDNQHVV \HW XQIDWKRPDEOH
PDJQLILFHQFH9LFWRU\LVVHWRQWKHH[RWLFLVODQGVRIWKH0DOD\$UFKLSHODJR,WLVD
'LFNHQVLDQ DQG *ROGLQJLDQ LQVSHFWLRQ RI PDOHYROHQFH LPPRUDOLW\ EHWUD\DO DQG
LVRODWLRQRIWKHZKLWHFKDUDFWHUVLQWKHQRQZKLWHODQGV7KHZRUNFRPPHPRUDWHV
WKHDZHLQVSLULQJSRZHURIILGHOLW\DQGORYH,Q7KH6KDGRZ/LQH&RQUDGQDUUDWHV
WKH H[SHULHQFHV RI D \RXQJ DQG LQH[SHULHQFHG VHD FDSWDLQ ZKR KDV D QRQZKLWH
FUHZRQKLVVKLS,WLVDVWRU\DERXWWKHQDUUDWRU¶VVWUXJJOHZLWKKLVFRQVFLHQFHDQG
VHQVH RI LVRODWLRQ 7KH OHJHQG RI WKH ZKLWH PDQ DQG KLV EULJ 7KH 5HVFXH LV D
VWRU\ RI SURWDJRQLVW¶V GLOHPPD ZKLOH HQJDJHG LQ PDNLQJ D FKRLFH /LQJDUG LV
FDXJKW LQ WKH H[LVWHQWLDOLVW GLOHPPD RI FKRRVLQJ EHWZHHQ KLV ORYH DQG KLV
FRPPLWPHQW WR WKH QRQZKLWHV &KDQFH LV D QRYHO RI WKH HPRWLRQDO LVRODWLRQ RI
&RQUDG¶V PRVW FRPSOH[ KHURLQH 7KH QDUUDWLYH GHVFULEHV WKH WUDJHG\ DQG
WUDQVIRUPDWLRQ RI )ORUD GH %DUUDO ,Q DOPRVW DOO WKH QRYHOV RI &RQUDG PHQWLRQHG
DERYHRQHFRPHVDFURVVWKHNQRWW\UDFHUHODWLRQVKLSVDQGLQWHUDFWLRQEHWZHHQLOO
DVVRUWHGDQGRSSRVLQJFXOWXUHV
&RQUDG H[SORUHV WKH SV\FKRORJLFDO GLVRUGHUV SURGXFHG GXH WR WKH LQWHUIDFH
EHWZHHQWKHFRORQ\DQGWKH(PSLUHWKHEODFNDQGWKHZKLWHDQGWKHFRORQL]HUDQG
WKHFRORQL]HGLQKLVKLJKO\V\PEROLFDQGFRQWURYHUVLDOZRUN+HDUWRI'DUNQHVV
2IDOO&RQUDG¶VZRUNV+HDUWRI'DUNQHVVLVZLGHO\SUHVFULEHGWKHPRVWUHDGDQG
RQH RI WKH PRVW LQIOXHQWLDO QRYHOV RI WKH WZHQWLHWK FHQWXU\ ,W LV DQ LPSHULDO
DGYHQWXUH VWRU\ ZKHUH WKH QDUUDWRU 0DUORZ GLVFRYHUV WKH GHFD\ DQG FRUUXSWLRQ
SURGXFHG E\ FRORQLDO LPSHULDOLVWV DQG DOVR WKH SK\VLFDO GDUNQHVV LQ WKH
XQIDWKRPDEOH DQG P\VWLI\LQJ FRUH RI WKH MXQJOH 7KH QXPEHU RI FULWLFV ZKR VHH
WKLVWH[WDVRQHRIWKHPRVWSRZHUIXOFRQGHPQDWLRQVRILPSHULDOLVPHYHUZULWWHQ
DUH PDQ\ +RZHYHU &KLQXD $FKHEH GLVFXVVHV WKH SHUFHSWLEOH DQG WKH
LPSHUFHSWLEOHDWWLWXGHRI&RQUDGWRZDUGVWKHWZRUDFHVLQ+HDUWRI'DUNQHVV+H
HPSKDWLFDOO\DVVHUWV³-RVHSK&RQUDGZDVDWKRURXJKJRLQJUDFLVW´$FKHEH
+HIHHOVXQHDV\ZLWK&RQUDG¶VRXWORRNWRZDUGVWKHQDWLYHVEHFDXVHDFFRUGLQJWR
$FKHEH ³IRU &RQUDG WKLQJV EHLQJ LQ WKHLU SODFH LV RI XWPRVW LPSRUWDQFH 7UDJHG\EHJLQVZKHQWKLQJVOHDYHWKHLUDFFXVWRPHGSODFHOLNH(XURSHOHDYLQJLWV
VDIHVWURQJKROGWRWDNHDSHHSLQWRWKHKHDUWRIGDUNQHVV´$FKHEH
$FKHEHVD\VWKDWWKHSLFWXUHRI$IULFDWKDW&RQUDGSURMHFWVLVQRW&RQUDG¶V
RZQ LGHD EXW LV WKH RQH SRSXODUL]HG E\ WKH (XURSHDQ P\WKV FKURQLFOHV DQG
OHJHQGV ,Q +HDUW RI 'DUNQHVV $IULFD LV VHW ³DV D IRLO WR (XURSH DV D SODFH RI
QHJDWLRQV DW RQFH UHPRWH DQG YDJXHO\ IDPLOLDU LQ FRPSDULVRQ ZLWK ZKLFK
(XURSH¶V RZQ VWDWH RI VSLULWXDO JUDFH ZLOO EH PDQLIHVW´ $FKHEH +H
DFFXVHV&RQUDGRIQRWOHQGLQJDYRLFHWRWKHQDWLYHV7KHVXEMXJDWHGGRQRWYRLFH
WKHLUDQJHUDQGPLVHU\+HFRQWLQXHV³,WLVFOHDUO\QRWSDUWRI&RQUDG¶VSXUSRVHWR
FRQIHU ODQJXDJH RQ WKH µUXGLPHQWDU\ VRXOV¶ RI $IULFD´ $FKHEH $FKHEH¶V
YLHZVDUHODUJHO\LQVWUXPHQWDOLQSURPSWLQJPHWRLQYHVWLJDWH&RQUDG¶VFRUSXVRI
ZRUN DQG WR H[SORUH LI WKH VDPH SUREOHPV DUH SUHVHQW DQG REVFXUHG LQ &RQUDG¶V
RWKHUWH[WVDVZHOO
3RVWFRORQLDO WKHRU\ WR P\ PLQG LV PRVW VXLWDEOH IRU WKH DQDO\VLV RI
&RQUDG¶VKDQGOLQJRIWKHLQWHUDFWLRQEHWZHHQWKHWZRRSSRVLQJUDFHVDQGFXOWXUDO
K\EULGLW\LQWKHWULFRQWLQHQWDOVRFLHWLHVEHFDXVH³QHLWKHUWKHDVVHUWLRQVRI0DU[LVP
QRU WKRVH RI SRVWVWUXFWXUDOLVP KRZHYHU FDQ H[KDXVWLYHO\ DFFRXQW IRU WKH
PHDQLQJV DQG FRQVHTXHQFHV RI FRORQLDO HQFRXQWHU´ WKRXJK WKH\ IRUP WKH ³PRVW
FRPSHOOLQJ EDVLV IRU SRVWFRORQLDO SROLWLFV´ *DQGKL L[ $OVR EHFDXVH
SRVWFRORQLDOLVP ³VWDQGV IRU HPSRZHULQJ WKH SRRU WKH GLVSRVVHVVHG DQG WKH
GLVDGYDQWDJHG IRU WROHUDQFH RI GLIIHUHQFH DQG GLYHUVLW\ IRU WKH HVWDEOLVKPHQW RI
PLQRULWLHV¶ ULJKWV ZRPHQ¶V ULJKWV DQG FXOWXUDO ULJKWV ´ DQG WKH SUHVHQW
GLVVHUWDWLRQWRRDLPVWRFRQFHQWUDWHRQWKHVWXG\RILVVXHVRIUDFHDQGJHQGHULQ
WKHZRUNVRI&RQUDG<RXQJ7KHSRVWFRORQLDOWKHRU\SURPSWVWKHUHDGHUVWR
TXHVWLRQDIHZVKDN\VLWHVDSSDUHQWLQ&RQUDG¶VQRYHOV,WLQYHVWLJDWHVWKHSRVLWLRQ
RIWKHDXWKRUDQGWKHSRVLWLRQRIWKHFKDUDFWHUV²ZKLWHDQGWKHQRQZKLWH²KH
WDONVDERXW+DOOVD\V³:HDOOZULWHDQGVSHDNIURPDSDUWLFXODUSODFHDQGWLPH
IURPDKLVWRU\DQGDFXOWXUHZKLFKLVVSHFLILF:KDWZHVD\LVDOZD\VµLQFRQWH[W¶
SRVLWLRQHG´DQGWKHUHIRUHWKHDQDO\VLVRIWKHSRVLWLRQRIWKHDXWKRUDQGKLVWH[WV
LV WKH DLP RI WKH GLVVHUWDWLRQ +DOO ,W WKXV EHFRPHV RI SDUDPRXQW
FRQVHTXHQFHWREULHIO\VSHOORXWVRPHLPSRUWDQWLVVXHVLQWKHSRVWFRORQLDOWKHRU\
3RVWFRORQLDOLVP KDV HPHUJHG DV RQH RI WKH PDMRU GLVFRXUVHV LQ WKH HDUO\
WZHQWLHWKFHQWXU\,WVLQWHUGLVFLSOLQDU\XVDJHKDVUHVXOWHGLQDFRORVVDODPRXQWRI
GHGLFDWHG DFDGHPLF ZULWLQJ 7KH SRVWFRORQLDO HUD LV QRUPDOO\ DQG VRPHZKDW
ZURQJO\ EHOLHYHG WR KDYH EHJXQ DIWHU WKH HQG RI WKH FRORQLDO UXOH EXW WKH
FRORQL]HG ZHUH UHDFWLQJA UHVLVWLQJ RU ILJKWLQJ DJDLQVW WKH LPSHULDO DXWKRULW\ HYHQ
GXULQJFRORQLDOLVP6RRQHPXVWDVNZKHQGLGSRVWFRORQLDOLVPDFWXDOO\EHJLQ",W
LV OLNHO\ WKDW VRPH UHDGHUV GLIIHUHQWLDWH EHWZHHQ WKH WLPHV ZKHQ WKH FRORQL]HUV
UXOHGRYHUWKHQRQZKLWHWHUULWRULHVDQGWKHQRQZKLWHSHRSOHDQGWKHWLPHVZKHQ
WKHGRPLQDWLQJFRPPXQLW\OHIWWKHGRPLQDWHGODQGVRQO\SK\VLFDOO\2UVRPHDUH
FRQFHUQHG ZLWK WKH VWXG\ RI WKH HQYLURQPHQW DQG FXOWXUH RI WKH GRPLQDWHG
FRORQLHV DIWHU WKHLU LQGHSHQGHQFH %XW LQ LWV FRPSUHKHQVLYH PHDQLQJ WKH WHUP
µSRVWFRORQLDO¶ FRYHUV ³DOO WKH FXOWXUH DIIHFWHG E\ WKH LPSHULDO SURFHVV IURP WKH
PRPHQWRIFRORQL]DWLRQWRWKHSUHVHQWGD\´$VKFURIW0RUHRYHUWKHREVHVVLRQ
DQGWKHIL[DWLRQRIWKH(XURSHDQSRZHUVWRZDUGVWKHFRORQL]HGDUHDVUHPDLQVWKH
VDPH IURP WKH ILUVW GD\ RI FRORQL]DWLRQ WLOO WRGD\ ZKHQ WKHVH SRZHUV H[HUFLVH
WKHLUFRQWURORYHUWKHRQFHFRORQL]HGWHUULWRULHVLQGLUHFWO\3RVWFRORQLDOLVPLVWKXV
FRQFHUQHG ZLWK ³WKH ZRUOG DV LW H[LVWV GXULQJ DQG DIWHU WKH SHULRG RI (XURSHDQ
LPSHULDOGRPLQDWLRQDQGWKHHIIHFWVRIWKLVRQFRQWHPSRUDU\OLWHUDWXUHV´$VKFURIW
,Q RWKHU ZRUGV SRVWFRORQLDOLVP GRHV QRW PHDQ SRVWLQGHSHQGHQFH RI WKH
FRORQLHVEXWLWEHJLQVZLWKWKHFRQWDFWRIWKH(PSLUHZLWKWKHFRORQLHV$VVRRQ
DV WKH FRORQL]HUV VWHS RQ WKH VRFDOOHG GDUN ODQGV WKH VHHGV RI UHDFWLRQ DQG
RSSRVLWLRQ DUH VRZQ $V D UHVXOW FRORQLDOLVP DQG SRVWFRORQLDOLVP EHJLQ
VLPXOWDQHRXVO\3RVWFRORQLDOOLWHUDWXUHLVQRWVLPSO\WKHZULWLQJZKLFKFDPHDIWHU
WKH GHPLVH RI WKH (PSLUH EXW LW LQFOXGHV DQ\ SLHFH RI ZRUN ZKLFK UHODWHV WKH
FRORQLDO UHODWLRQVKLS IURP WKH YHU\ EHJLQQLQJ RI WKH LQWHUIDFH EHWZHHQ WKH WZR
UDFHV:ROIUH\VFODLPVWKDWSRVWFRORQLDOOLWHUDWXUH
KDV HPHUJHG IURP DQ LQWHUGLVFLSOLQDU\ DUHD RI VWXG\ ZKLFK LV
FRQFHUQHG ZLWK WKH KLVWRULFDO SROLWLFDO SKLORVRSKLFDO VRFLDO FXOWXUDO
DQGDHVWKHWLFVWUXFWXUHVRIFRORQLDOGRPLQDWLRQDQGUHVLVWDQFHLWUHIHUV
WRDZD\RIUHDGLQJWKHRUL]LQJLQWHUSUHWLQJDQGLQYHVWLJDWLQJFRORQLDO
RSSUHVVLRQ DQG LWV OHJDF\ WKDW LV LQIRUPHG E\ DQ RSSRVLWLRQDO HWKLFDO
DJHQGD:ROIUH\V
7HUPVOLNHFRORQLDOLVPDQGSRVWFRORQLDOLVPKDYHHPHUJHGIURPLPSHULDOLVP
DQGFRORQLDOLVPUHVSHFWLYHO\$IWHUORQJ\HDUVRIGHFOLQHRILPSHULDOLVPWKHWHUP
FRORQLDOLVPVHHPHGLQVXIILFLHQWIRULWGLGQRWGLVFXVVDOOWKHIRUPVRIRSSUHVVLRQ
ZKLFK EHFDPH D SDUW RI SRVWFRORQLDOLVP ODWHU RQ DQG VWXG\ RI FRORQLDOLVP
FKDQJHG LQWR SRVWFRORQLDOLVP (OOD 6KRKDW WDONV DERXW WKH RULJLQ RI WKH WHUP
SRVWFRORQLDODQGVD\V³WKHSRVWFRORQLDOGLGQRWHPHUJHWRILOOWKHHPSW\VSDFHLQ
WKH ODQJXDJH RI SROLWLFDOFXOWXUDO DQDO\VLV 2Q WKH FRQWUDU\ LWV ZLGH DGDSWDWLRQ
GXULQJ WKH ODWH HLJKWLHV ZDV FRLQFLGHQW ZLWK DQG GHSHQGHQW RQ WKH HFOLSVH RI DQ
ROGHUSDUDGLJPWKDWRIWKHµ7KLUG:RUOG¶´6KRKDW)RUKHUWKHWHUPµSRVW
FRORQLDO¶ LV WR EH XVHG ³IRU FULWLFDO GLVFRXUVHV ZKLFK WKHPDWL]H LVVXHV HPHUJLQJ
IURP FRORQLDO UHODWLRQV DQG WKHLU DIWHUPDWK FRYHULQJ D ORQJ KLVWRULFDO VSDQ´
6KRKDW 0RUHRYHU WKHUH DUH FRQWUDVWLQJ YLHZV RQ ZKHWKHU WKH WHUP
SRVWFRORQLDOVKRXOGEHK\SKHQDWHGRUQRW7KHXVHRIK\SKHQDWHGWHUPVXJJHVWVD
FKURQRORJLFDOFKDQJH IURPWKHPRPHQWZKHQFRORQLDOLVPHQGHGRIILFLDOO\WRWKH
JLYH VSDFH WR QHRFRORQLDOLVP RU ZH FRXOG VD\ SRVWFRORQLDOLVP $QG WKH
XQK\SKHQDWHGH[SUHVVLRQUHIHUVWRWKHUHDVVHVVPHQWRIDZLGHUDQJLQJDSSUDLVDORI
ZHVWHUQ VWUXFWXUHV RI SRZHU DQG NQRZOHGJH ,W VLJQLILHV WKH DUUDQJHPHQW RI
VXSUHPDF\ EHWZHHQ WKH (DVW DQG WKH :HVW GXULQJ LPSHULDO GRPLQDWLRQ DQG DOVR
DIWHUWKHHQGRIFRORQLDOLVP
*HQHUDOO\VHHQWKHGHILQLWLRQDQGWKHPHDQLQJRIWKHWHUPSRVWFRORQLDOUHIHU
WR WKH VWXG\ RI WKH WLPHV RI FRORQL]DWLRQ WR WKH SUHVHQW GD\ %XW DFFRUGLQJ WR
$VKFURIW D FRPSUHKHQVLYH GHILQLWLRQ RI SRVWFRORQLDOLVP KDV EHHQ RSSRVHG E\
WKRVH ZKR GHPDQGHG VSHFLILFDWLRQ DQG FODVVLILFDWLRQ RI WKH H[SUHVVLRQ DQG LWV
VLJQLILFDQFH 7KH FULWLFV LQ RSSRVLWLRQ RI D ZLGHUDQJLQJ GHVFULSWLRQ RI
SRVWFRORQLDOLVPEHOLHYHWKDW³PDQ\RWKHUGLVFLSOLQHVKDYHDGRSWHGWKHLGHDRUDW
OHDVW WKH WHUP µSRVWFRORQLDO¶ WR FKDUDFWHUL]H FRQFHUQV LQ ILHOGV UDQJLQJ IURP
SROLWLFVDQGVRFLRORJ\WRDQWKURSRORJ\DQGHFRQRPLFWKHRU\,QIDFWWKHWHUPKDV
EHHQDGRSWHGLQVRPDQ\GLIIHUHQWZD\VWKDWZHDUHLQGDQJHURIDOWRJHWKHUORVLQJ
VLJKW RI LWV DFWXDO SURYHQDQFH DQG LQWHOOHFWXDO KLVWRU\´ $VKFURIW 6RPH
FULWLFVEHOLHYHWKDWWKHWHUPSRVWFRORQLDOVKRXOGUHIHUWRDSDUWLFXODUSHULRGGXULQJ
FRORQLDOUXOHRULWVKRXOGUHIHUWRFHUWDLQJURXSVRISHRSOHZKRKDYHEHHQDIIHFWHG
E\WKHSURFHVVRIFRORQL]DWLRQLQFHUWDLQSHFXOLDUZD\V
$IWHU UHDGLQJ WKH YLHZV RI WKRVH ZKR RSSRVH DQ DOOLQFOXVLYH GHILQLWLRQ RI
WKHWHUPSRVWFRORQLDOLVPWKHTXHVWLRQDULVHVKRZGRHVRQHGHILQHDFHUWDLQSHULRG
RI KLVWRU\ DV WKH SRVWFRORQLDO HUD ZKHQ HYHQ WRGD\ WKH IRUPHU FRORQLHV DUH QRW
IUHH RI WKH JOREDOL]DWLRQ DQG IUHH HQWUHSUHQHXUVKLS" 7KH LQGHSHQGHQFH RI WKH
IRUPHUFRORQL]HGVRFLHWLHVGRHVQRWVWDPSRXWWKHLQIOXHQFHRIWKHZKLWH UXOHRQ
WKH SHULSKHU\ 'RHV LW WKHQ PHDQ WKDW WKH FRORQL]HG ZRXOG QHYHU EH IUHH RI WKH
SUHVVXUHDQGPDQLSXODWLRQE\WKHFRORQL]HUV"$VKFURIWTXRWHV1JXJLDFFRUGLQJWR
ZKRP WKH DJHQGD RI SRVWFRORQLDO WKHRU\ LV ³WR DVVLVW WKH WRWDO DQG DEVROXWH
GHFRORQL]DWLRQ RI VRFLHWLHV LQ SV\FKRORJLFDO DV ZHOO DV SROLWLFDO WHUPV LQYROYLQJ
PDVVLYHDQGSRZHUIXOUHFXSHUDWLRQVRIWKHSUHFRORQLDOFXOWXUHV´$VKFURIW
7KHUHIRUH WKH DFFHSWDQFH RI PXOWLIDFHWHG DQG FRPSUHKHQVLYH GHILQLWLRQV RI
SRVWFRORQLDOLVP EHFRPHV REOLJDWRU\ 7KH PHDQLQJ DQG ULFKQHVV RI
SRVWFRORQLDOLVP FDQ DOVR EH GHVFULEHG LQ WKH ZRUGV RI 9LODVKLQL &RRSSDQ 6KH
VD\V SRVWFRORQLDOLVP LV ZKHUH ³VHYHUDO HUDV RI FRORQLDOLVP DQG LPSHULDOLVP
LQGLYLGXDO VWUXJJOHV RI GHFRORQL]DWLRQ WKH UHVXOWDQW UHJLPHV RI QHRFRORQL]DWLRQ
DQG QHRLPSHULDOLVP DQG YDULRXV SRVW:RUOG :DU ,, PRYHPHQWV RI H[LOH
PLJUDWLRQDQGGLDVSRUDKDYHEHHQVTXHH]HGWRJHWKHULQWRRQHHQWLW\´&RRSSDQ
*HQHUDOO\VSHDNLQJSRVWFRORQLDOWKHRU\JRWLWVQDPHVSDFHDQGUHFRJQLWLRQ
DIWHUWKHSXEOLFDWLRQRI(GZDUG6DLG¶V2ULHQWDOLVPLQ7KLVVFKRODUO\ERRNLV
DQ LPSRUWDQW PLOHVWRQH LQ HVWDEOLVKLQJ WKH PHDQLQJ DQG LPSOLFDWLRQV RI
SRVWFRORQLDO WKHRU\ 0DUJLQDOLW\ DFTXLUHG D VWDWXV RI D GLVFLSOLQH LQ $QJOR
$PHULFDQ DFDGHP\ DIWHU WKH SXEOLFDWLRQ RI WKH ERRN 4XRWHG LQ 5REHUW <RXQJ¶V
3RVWFRORQLDOLVP $ 9HU\ 6KRUW ,QWURGXFWLRQ *D\DWUL &KDNDUYRUWK\ 6SLYDN
GLVFXVVHV2ULHQWDOLVPDVDWH[WZKLFKKHOSHGWKHVWXG\RIFRORQLDOGLVFRXUVH³WR
EORVVRP LQWR D JDUGHQ ZKHUH WKH PDUJLQDO FDQ VSHDN DQG EH VSRNHQ DQG HYHQ
VSRNHQIRU´<RXQJ$FFRUGLQJWR:ROIUH\V³6DLG¶VPRQRJUDSKLVDSROHPLFDO
DQG FULWLFDO VWXG\ RI WKH ZD\V LQ ZKLFK WKH RFFLGHQW KDV VRXJKW WR REMHFWLI\ WKH
2ULHQW WKURXJK WKH GLVFRXUVHV RI WKH DUWV DQG WKH KXPDQ DQG VRFLDO VFLHQFHV´
:ROIUH\V /HHOD *DQGKL EHOLHYHV WKDW 6DLG¶V ZRUN LV ³WKH FDWDO\VW DQG
UHIHUHQFHSRLQWIRUSRVWFRORQLDOLVP´*DQGKL
%DVHGRQWKHIRXQGDWLRQVODLGE\ )RXFDXOW DQG*UDPVFL2ULHQWDOLVP JLYHV
DQLGHDRIKRZWKHZHVWHUQFULWLFVZULWHUVDQGWKHRULVWVLGHQWLI\WKH2ULHQW7KLV
VHPLQDO ERRN H[WHQGV )RXFDXOW¶V FRQFHSW RI GLVFRXUVH DQG *UDPVFL¶V QRWLRQ RI
KHJHPRQ\ 2ULHQWDOLVP LV VHHQ DV DQ DSSURDFK DQG GLVFRXUVH WKDW GHVFULEHV DQG
DXWKRULVHVWKHGRPLQDWLRQDQGH[HUFLVHRIFRQWURORIWKH(XURSHDQVRYHUWKH(DVW
,W FDQ DOVR EH GHVFULEHG DV D FROOHFWLRQ RI SURSRXQGHG LGHDV EDVHG XSRQ WKH
VXSHULRULW\RIWKHZKLWHLPSHULDOLVWUDFH$FFRUGLQJWR6DLG³DQ\RQHZKRWHDFKHV
ZULWHV DERXW RU UHVHDUFKHV WKH 2ULHQW HLWKHU LQ LWV VSHFLILF RU LWV JHQHUDO
DVSHFWV LV DQ 2ULHQWDOLVW DQG ZKDW KH RU VKH GRHV LV 2ULHQWDOLVP´ 6DLG 2ULHQWDOLVP UHFHLYHV LWV SHUPDQHQFH DQG SRWHQF\ IURP WKH DGRSWHG FXOWXUDO
GRPLQLRQRIWKH(XURSHDQQDWLRQV
6DLG VD\V WKDW WKH 2ULHQW KDV EHHQ LQYHQWHG E\ WKH 2FFLGHQW DQG WKH
FRORQLVLQJ (PSLUHV OLNH $PHULFD %ULWDLQ DQG )UDQFH DOO SHUFHLYH WKH 2ULHQW
GLIIHUHQWO\+HVD\VWKDW WKH(XURSHDQVDUHHQJDJHGLQWKHHIIRUWRIGLUHFWLQJWKH
GLVWDQW ODQGV IRU WKHLU GHYHORSPHQW SURILW DQG SURJUHVV 2ULHQWDOLVP LV WKXV ³QRW
DQ DLU\ (XURSHDQ IDQWDV\ DERXW WKH 2ULHQW EXW D FUHDWHG ERG\ RI WKHRU\ DQG
SUDFWLFH LQ ZKLFK IRU PDQ\ JHQHUDWLRQV WKHUH KDV EHHQ D FRQVLGHUDEOH PDWHULDO
LQYHVWPHQW´6DLG6DLGEHOLHYHVWKDWWKHZHVWHUQWKLQNHUVFRQVWUXFWWKH2ULHQW
DVVRPHWKLQJODFNLQJRUDVWKHRWKHURIWKH:HVWLQRUGHUWRIRUFHIXOO\HVWDEOLVK
WKH LGHD RI ZHVWHUQ VXSUHPDF\ $QG WKHUHIRUH WKH 2ULHQW KDV ³VLQFH DQWLTXLW\
>EHHQ@ D SODFH RI URPDQFH H[RWLF EHLQJV KDXQWLQJ PHPRULHV DQG ODQGVFDSHV
UHPDUNDEOH H[SHULHQFHV´ 6DLG 7KH 2ULHQWDOV DUH VHHQ DV LOORJLFDO
XQUHDVRQDEOH DQG LPPRUDO ZKLOH WKH 2FFLGHQWDOV DUH SHUFHLYHG DV MXGLFLRXV
ULJKWHRXVDQGPDWXUHEHFDXVH³WKHUHODWLRQVKLSEHWZHHQ2FFLGHQWDQG2ULHQWLVD
UHODWLRQVKLSRISRZHURIGRPLQDWLRQRIYDU\LQJGHJUHHVRIDFRPSOH[KHJHPRQ\
´6DLG6DLGGHVFULEHVFRORQL]DWLRQDVDFXOWXUDODWWLWXGH
6DLG¶VK\SRWKHVLVEHFRPHVLQWHUGLVFLSOLQDU\ZKHQKHVXJJHVWVDFRQQHFWLRQ
EHWZHHQWKHV\VWHPRINQRZOHGJHDQGWKHRUJDQL]DWLRQRIGRPLQDQFHSRZHUDQG
DXWKRULW\+HEHOLHYHVWKDWNQRZOHGJHFDQQRWEHGHWDFKHGIURPWKHUHODWLRQVKLSRI
SRZHU WKDW H[LVWV EHWZHHQ WKH FRORQL]HUV DQG WKH FRORQL]HG 6DLG VWDWHV WKDW LW LV
GLIILFXOW WR VHSDUDWH ³WKH VFKRODU IURP WKH FLUFXPVWDQFHV RI OLIH IURP WKH IDFW RI
KLVLQYROYHPHQWFRQVFLRXVDQGXQFRQVFLRXVZLWKDFODVVDVHWRIEHOLHIVDVRFLDO
SRVLWLRQRUIURPWKHPHUHDFWLYLW\RIEHLQJDPHPEHURIDVRFLHW\´6DLG+H
VD\V WKDW ERWK NQRZOHGJH DQG SRZHU DUH FRPSOLPHQWDU\ WR HDFK RWKHU VLQFH WKH
H[HUFLVH RI SRZHU GHSHQGV XSRQ WKH NQRZOHGJH RI WKH 2ULHQW DQG FRQVHTXHQWO\A
JUHDWHU NQRZOHGJH RI WKH 2ULHQW LV REWDLQHG ZLWK PRUH SRZHU RYHU WKH
VXERUGLQDWHV
,Q WKH EHJLQQLQJ SRVWFRORQLDOLVP IRFXVHG RQO\ RQ WKH FRORQL]HUFRORQL]HG
DQG WKH (PSLUHFRORQ\ UHODWLRQVKLS 6RRQ LW EHJDQ WR LQFOXGH DQ DQDO\VLV RI WKH
WHUPVOLNHKHJHPRQ\ UDFHFODVVDQG JHQGHU7KH(PSLUH :ULWHV%DFNSXEOLVKHG
LQ IRFXVHV RQ UDFH DQG ELJRWU\ LQ %ULWDLQ LQ WKH ¶V %XW WKLV ZRUN
LJQRUHV WKH ORFDO SHFXOLDULWLHV PHDQLQJ WKHUHE\ WKDW WKH ZRUN KRPRJHQLVHV WKH
VKRFN RI LPSHULDO UXOH RQ GLIIHUHQW SDUWV RI WKH ZRUOG ,Q (XURSH DQG LWV 2WKHUV
*D\DWUL &KDNDUYRUWK\ 6SLYDN DQG +RPL . %KDEKD XQGHUVFRUH WKH DQDO\VLV RI
FRORQLDO GLVFRXUVHV 5REHUW <RXQJ LQ KLV ZRUNV IRFXVHV RQ WKH LVVXHV RI UDFH
HPSLUH FRORQ\ QDWLRQKRRG DQG WKH SURGXFWLRQ RI NQRZOHGJH DQG SRZHU $VKLV
1DQG\LQ7KH,QWLPDWH(QHP\HYDOXDWHVFRORQLDOLVPIURPDSV\FKRORJLFDOSRLQWRI
YLHZ ,W VKRZV WKDW WKH FRORQL]HG WU\ WR GHIHDW WKH FRORQL]HUV ZLWK WKHLU RZQ
ZHDSRQV $Q\ ZRUN ² FUHDWLYH RU FULWLFDO SURGXFHG EHIRUH RU DIWHU WKH HQG RI
FRORQLDOLVP²FRPHVXQGHUWKHXPEUHOODRISRVWFRORQLDOLVP&RQUDG¶VZRUNVDOVR
IRFXVRQWKHKHJHPRQLFUHODWLRQVKLSEHWZHHQWKHWZRUDFHV
(0)RUVWHUZDVDWWUDFWHGE\WKHLQWHUIDFHRIWKHWZRUDFHVWZRFXOWXUHV
WZRVHWVRIYDOXHVWZRDSSURDFKHVWROLIHRULQEULHIWKH2ULHQWDQGWKH2FFLGHQW
+H GHSLFWV WKH IULFWLRQDO UHODWLRQVKLS EHWZHHQ WKH2ULHQW DQG WKH 2FFLGHQW LQ KLV
PRVWIDPRXVQRYHO$3DVVDJHWR,QGLD7KHGLFKRWRP\EHWZHHQWKH(DVW2ULHQW
DQGWKH:HVW2FFLGHQWLVSOD\HGRXWDPRQJVWLWVWKUHHFKDUDFWHUV'U$]L]&\ULO
)LHOGLQJ DQG $GHOD 4XHVWHG 'XULQJ D WULS WR WKH 0DUDEDU &DYHV 0LVV 4XHVWHG
LQGLFWV $]L] IRU DWWHPSWLQJ WR UDSH KHU $]L]¶V WULDOV DQG LWV UHSHUFXVVLRQV EULQJ
RXWKRZ)RUVWHUGUDPDWLVHVWKHFRQIOLFWEHWZHHQWKHFRORQL]HUVDQGWKHFRORQL]HG
+LVZRUNVKRZVWKHHQFRXQWHUEHWZHHQWKHDOOHJHGO\FKDRWLFVRFLHW\RI,QGLDDQG
VXSSRVHG PDVWHUV WKH (QJOLVK 7KH QRYHO LV EDVHG XSRQ WKUHH VXEMHFWV ,W WDONV
DERXW WKH GLIILFXOW\ RI IULHQGVKLS DFURVV FXOWXUDO WHUULWRULHV DQG WUDGLWLRQV WKH
UDFLVPWKHRSSUHVVLRQWKDWWKHRXWVLGHUVFRPPLWRYHUWKHQDWLYHVDQGWKHFKDRVRI
,QGLDQFLYLOL]DWLRQ,Q)RUVWHU¶VZRUOGWKHIULHQGVKLSEHWZHHQWKHZHVWHUQDQGWKH
QRQZHVWHUQGRHVQRWSURVSHU %XW&RQUDGVRPHWLPHVDSSUHFLDWHVWKH IULHQGVKLS
EHWZHHQ WKH ZKLWHV DQG WKH QRQZKLWHV ,Q )RUVWHU WKH FRORQL]HG XQDYRLGDEO\
UHVHQW WKH FRORQL]HUV DQG FRQYHUVHO\ WKH GRPLQDWRUV GHVSLVH WKH GRPLQDWHG
)RUVWHUVKRZVWKHUDFLVWDWWLWXGHRIWKH%ULWLVKLQWKHGHSLFWLRQRIWRUWXUHVFUXHOW\
DQG RSSUHVVLRQ WKDW 0DMRU &DOHQGDU FRPPLWV RQ WKH ,QGLDQV +H ERDVWV RI
WRUWXULQJ DQ LQMXUHG ,QGLDQ \RXWK E\ SXWWLQJ SHSSHU RQ KLV ZRXQGHG IDFH 0U
)LHOGLQJ UHVSHFWV ,QGLDQV EXW KH DOVR DFFHSWV WKDW WKH VXERUGLQDWH FRXQWU\ FDQ
SURJUHVV DQG SURVSHU RQO\ XQGHU WKH UXOH RI WKH (PSLUH )RUVWHU¶V LQWHQWLRQ KHUH
VHHPVWRVXJJHVWWKDWWKH2ULHQWQHHGVWKH2FFLGHQWWRGHYHORSDQGJURZ2QWKH
RQHKDQG)RUVWHUQDUUDWHVWKHELDVHGDWWLWXGHRIWKH(QJOLVKWRZDUGVWKHFRORQL]HG
DQGRQWKHRWKHUKHSHUFHLYHV,QGLDDVDPXGGOH+HSUHIHUVWKHVFLHQWLILFDSWLWXGH
RIWKHZHVWHUQHUVWRWKHVSLULWXDOHPRWLRQDODQGLQWXLWLYHRXWORRNRIWKHGRPLQDWHG
SHRSOH%XWWRZDUGVWKHHQGRIKLVZRUN)RUVWHUDOVRVXJJHVWVWKDWWKHGLYHUVLW\RI
WKH QRQZKLWH UDFHV DQG WKH QRQZKLWH ODQGV VKRXOG EH DFFHSWHG E\ WKH ORJLFDO
PLQGHGUXOLQJPLQRULW\
,W KDV DOUHDG\ EHHQ HQXPHUDWHG LQ WKH SDUDJUDSK DERYH WKDW )RUVWHU WDONV
DERXWWKHLQWHUIDFHEHWZHHQWKHZKLWHVDQGWKHQRQZKLWHVWKHUHFRJQLWLRQRIWKH
WUXHSLFWXUHRIFRORQLDOLVPDQGGRPLQDWLRQDQGWKHXVHRIWKHVWHUHRW\SHV&RQUDG
DOVRH[SORUHVWKHPDJQLWXGHRIWKHFRUUXSWLRQDQGGHFDGHQFHRILPSHULDOLVPLQKLV
QDUUDWLYHV,WLV&RQUDG¶V³SHUVSHFWLYHWRXQUDYHOWKHSHUSHWXDOFRQIOLFWDQGWKXVWR
GHYHORS D ZRUOGYLHZ GLVFUHHWO\ GLIIHUHQWLDWLQJ WKH RIILFLDO DQG WKH QRQRIILFLDO
YRLFHV´ 7HZDUL +H H[SORUHV DQG DUWLFXODWHV WKH PDFKLQDWLRQV EHKLQG WKH
UKHWRULFSURSRXQGLQJJUDQGLGHDVOLNHWKHFLYLOLVLQJPLVVLRQWKHLGHDRIHIILFLHQF\
WKH GLVFRXUVH RI SURJUHVV PRUDO RUGHU DQG WKH P\WKV SURSRXQGHG E\ WKH
LPSHULDOLVWV+HVKRZVKRZWKHLPSHULDOHQWHUSULVHUHSUHVHQWVWKHFRORQL]HGZRUOG
DVFXOWXUDOO\DQGSROLWLFDOO\EDQNUXSWVRWKDWLPSHULDOLVPPD\MXVWLI\LWVUXOHDQG
WKHLPSOLFDWLRQRILWVRUGHUV7KURXJKLWVGLVFRXUVHRISURJUHVVWKHLPSHULDOUXOH
GHPDQGV UHVSHFW IRU LWV VRFDOOHG EHQHILFLDO JRYHUQDQFH %XW &RQUDG¶V
FRPPDQGLQJ DVVHUWLRQV DERXW WKH SROLWLFDO FRQQRWDWLRQV RI FRORQLDOLVP ZLOO EH
DQDO\VHG LQ WKH GLVVHUWDWLRQ 7KH ILUVW DQG WKH WKLUG FKDSWHUV VFUXWLQLVH ZKHWKHU
&RQUDGGHSLFWVWKHDFWXDOSXUSRVHRIWKHLPSHULDOLVWVFOHDUO\RUKHKLGHVLWEHKLQG
ZDWFKZRUGVOLNHRUGHULGHDSKLODQWKURSLFGXW\IDLWKDQGVHFXULW\"
&RQUDGDQG)RUVWHUDWWHPSWWRFKDOOHQJHSUHMXGLFHGDQGGHPHDQLQJYLHZVRI
WKH FRORQL]HUV DERXW WKH VXEDOWHUQ 7KH\ UHFRJQLVH KHWHURJHQHLW\ DQG WDON DERXW
WKH GLIIHUHQFH EHWZHHQ WKH 2ULHQW DQG WKH 2FFLGHQW MXVW DV SRVWFRORQLDO WKHRU\
EULQJVWROLJKWWKHFXOWXUDOK\EULGLW\7KHFODLPRIWLPHOHVVQHVVDQGXQLYHUVDOLW\LQ
D ZRUN RI DUW UHOHJDWHV WKH FXOWXUDO FRPPXQDO SURYLQFLDO DQG QDWLRQDO
GLIIHUHQFHVWRWKHPDUJLQDOSRVLWLRQ8QGHUWKHJXLVHRIXQLYHUVDOPDJQLWXGHWKH
(XURFHQWULF FXVWRPV DQG SROLFLHV DUH XSKHOG VXSSRUWHG DQG SURSDJDWHG
3RVWFRORQLDO WKHRU\ TXHVWLRQV WKH ³ IDOVH QRWLRQV RI WKH XQLYHUVDO´ DQG DOVR
LQTXLUHVWKH³WKHRULHVRIVW\OHDQGJHQUHDVVXPSWLRQVDERXWWKHXQLYHUVDOIHDWXUHV
RI ODQJXDJH HSLVWHPRORJLHV DQG YDOXH V\VWHPV ´ $VKFURIW 3RVWFRORQLDO
WKHRU\ UHFRJQL]HV WKH GLIIHUHQFHV DQG UHMHFWV WKH FODLPV RI WKH WH[WV DV EHLQJ
XQLYHUVDOLQQDWXUH,WGRHVQRWXQGHUPLQHWKHQRWLRQRIXQLYHUVDOLW\EXWDOVRKLQWV
DW LWV GHILFLHQF\ DQG VFDQWLQHVV $PRQJVW RWKHU WKLQJV WKH ZDWFKZRUGV RI
SRVWFRORQLDOWKHRU\DUHKHWHURJHQHLW\DQGK\EULGLW\DQGWKHUHIRUHWKHDFFHSWDQFH
RIWKHVXEMHFWPDWWHUEHLQJXQLYHUVDOZRXOGEHSDUDGR[LFDO
3RVWFRORQLDO OLWHUDWXUH GLVPLVVHV WKH XVH RI VWHUHRW\SHV IRU WKH 2WKHUV ,W
H[SRVHVWKHZD\WKH)LUVW:RUOGSHRSOHZULWHUVSKLORVRSKHUVFULWLFVDQGWKLQNHUV
KDYHGHYHORSHGDSDUWLFXODUZD\RIORRNLQJDWDQGLQWHUSUHWLQJWKHOLYHVFXVWRPV
DQG FRQYHQWLRQV RI WKH QDWLYHV 1DWLYHV DUH SRUWUD\HG ZLWK QHJDWLYH WUDLWV ZKLFK
YLQGLFDWH WKH JRYHUQDQFH RI WKH ZKLWHV 7KH 2WKHUV DUH VKRZQ DV FKLOGLVK
IHPLQLQH XQWDPHG VDYDJH XQWUDLQHG FDQQLEDOLVWLF VODYHV RI SDVVLRQ DQG
LQFDSDEOH RI WDNLQJ FDUH RI WKHPVHOYHV $FFRUGLQJ WR +RPL . %KDEKD µWKH
RWKHUQHVV¶ LV VHHQ DV DQ REMHFW ERWK RI ³GHVLUH DQG GHULVLRQ DQ DUWLFXODWLRQ RI
GLIIHUHQFH FRQWDLQHG ZLWKLQ WKH IDQWDV\ RI RULJLQ DQG LGHQWLW\´ %KDEKD ,Q
FRQWUDVWWRWKHSLFWXUHSUHVHQWHGE\WKH:HVWSRVWFRORQLDOLVPVKRZVWKHWUXHVLGH
RI WKH UHSUHVHQWDWLRQ RI WKH QRQZKLWH ODQGV DQG LWV LQKDELWDQWV ,W KDV EHHQ
LOOXVWUDWHG WKDW WKH SRVWFRORQLDO OLWHUDWXUH H[SRVHV WKH ELDVHG SHUVSHFWLYH RI WKH
ZHVWHUQVWRZDUGVWKHQRQZHVWHUQV3RVWFRORQLDOVWXG\LQFOXGHVWKHOLWHUDWXUHWKDW
VWDUWHG HPHUJLQJ LQ WKH FRORQLHV DQG LQ WKH UXOLQJ FRXQWULHV VRRQ DIWHU FRORQLDO
LQWHUYHQWLRQ,WUHORDGVWKHFDQRQVXJJHVWLQJWKDWSRVWFRORQLDODSSURDFKGRHVQRW
H[LVW LQ H[FOXVLYLW\ ZLWK RWKHU DSSURDFKHV ,W WKURZV OLJKW RQ WKH YHLOLQJ
YDFLOODWLRQDQGHTXLYRFDWLRQRIHYLOLPSDFWRIWKHGRPLQDWLQJSRZHUV&RQUDGDOVR
VHHPV WR GR WKH VDPH LQ KLV ZRUNV +H PDNHV WKH 2ULHQW VSHDN DQG XQVWLWFK WKH
DQRQ\PLW\ RI WKH QRQZKLWH ODQGV DQG LWV LQKDELWDQWV 7KH GLFKRWRPRXV
UHODWLRQVKLSV EHWZHHQ WKH (DVW DQG WKH :HVW DUH YLVLEOH LQ WKH &RQUDGLDQ WH[WV
7HZDULILQGVWKDWLQWKHZRUNVRI&RQUDG³WKHFRORQLVHGDUHFHUWDLQO\DJKDVWZLWK
WKLV LQYDVLRQ E\ WKH DOLHQ FXOWXUH ZKLFK WKH\ FDQQRW FRPSUHKHQG DQG FRQIURQW
7KHLU OLYLQJ VW\OH LV SULPLWLYH EXW LW PHHWV ZLWK KRUUHQGRXV FUXHOW\ RI WKH
µFLYLOLVHG¶ ZKHQ WKH SURWDJRQLVW RI WKH FRORQLVLQJ PLVVLRQ SURFODLPV WKH
H[WHUPLQDWLRQRIDOOWKHEUXWHVIRUWKHVXFFHVVRIWKHµFLYLOLVLQJPLVVLRQ¶´7HZDUL
&RQUDG VKRZV WKDW WKH DLP RI WKH LPSHULDOLVWV LV WR VXEMXJDWH WKH SULPLWLYH
VRFLHWLHV E\ OD\LQJ HPSKDVLV RQ WKH GLIIHUHQFHV EHWZHHQ WKH 2ULHQW DQG WKH
2FFLGHQW RU E\ DVVXPLQJ DQG SURSDJDWLQJ WKH VSHFLDO DQG VLJQLILFDQW DWWULEXWHV
ZKLFKWKH2WKHUVGRQRWSRVVHV7KHZKLWHVFUHDWHWKHSLFWXUHRIWKHQRQZKLWHVRQ
WKH EDVLV RI FHUWDLQ SRVWXODWLRQV DQG ³3RVWFRORQLDOLVP VKRZV WKDW ZKHQ ZHVWHUQ
SHRSOHORRNDWWKHQRQZHVWHUQZRUOGWKH\VHHµDPLUURULPDJH¶RIWKHPVHOYHVDQG
WKHLURZQDVVXPSWLRQVWKDQUHDOLW\´<RXQJ7KHVHSUHVXPSWLRQVRIWKHZKLWHV
DUHDOZD\VEDVHGRQWKHTXDOLWLHVDQGWUDLWVWKDWDUHODFNLQJLQWKHP7KHUHIRUHWKH
ZKLWH FRORQL]HUV DUH SRUWUD\HG DV WKH RUJDQL]HUV WKH SKLODQWKURSLVWV DQG WKH
EHQHIDFWRUVZKLOHWKHQDWLYHVV\PEROLVHZHDNQHVVDQGGHIHQFHOHVVQHVV
:LWK WKH ULVH DQG WKH GHYHORSPHQW RI QDWLRQDO FRQVFLRXVQHVV SRVWFRORQLDO
OLWHUDWXUH JDLQHG LPSHWXV ,W H[SUHVVHG WKH GLIIHUHQFH IURP WKH GRPLQDQFH RI
SRZHU ,QLWLDOO\ SRVWFRORQLDO OLWHUDWXUH DSSHDUHG LQ WKH JHQUH DQG WKH ODQJXDJH
XVHGLQDQGE\WKH(PSLUH%XWODWHUFKDQJHVEHJDQWRFUHHSLQLQWKHIRUPDQG
XVHRIODQJXDJHIRUWKHH[SUHVVLRQRIUHVHQWPHQW7KHSRVWFRORQLDOOLWHUDWXUHRIWKH
FRORQL]HGVRFLHWLHVFRQWH[WXDOL]HVWKHLUODQGVFDSHWKHLUODQJXDJHWKHLUFXOWXUHDQG
WKHLU WUDGLWLRQV ,W GHP\VWLILHV WKH LPSHULDO UXOH LWV KHJHPRQLF LPSOLFDWLRQV
K\EULGFXOWXUHDQGWKHSV\FKRORJLFDOGHDGORFNWKDWWKHFRORQLDODXWKRULW\SURGXFHG
DPRQJ WKH FRORQL]HG ,W UHSUHVHQWV KRZ WKH LPSHULDO DXWKRULW\ GHVWUR\V WKH
VXUURXQGLQJV FXOWXUH DQG KLVWRU\ RI WKH QDWLYHV¶ ODQGV 3RVWFRORQLDO OLWHUDWXUH
UHJLVWHUV WKH YRLFH RI WKH VXEMXJDWHG DQG WKH GLVORFDWHG DJDLQVW WKH RSSUHVVLYH
FRQGLWLRQV 7KHVH FRQGLWLRQV KDYH UHVXOWHG LQ SRYHUW\ DQG SRZHUOHVVQHVV 7KH
DJHQWV RI WKH GRPLQDQW DXWKRULW\ PD\ KDYH OHIW WKH SHULSKHUDO WHUULWRULHV
SK\VLFDOO\ EXW WKH VSLULWXDO DQG SV\FKRORJLFDO VFDUV RI GRPLQDQFH UHPDLQ
LPSULQWHGRQWKHOLYHVRIWKHLQGLJHQRXVSRSXODWLRQ7KHZKLWHFXOWXUHHVWDEOLVKHV
LWV FRQWURO E\ VXSSUHVVLQJ DQG H[WHUPLQDWLQJ WKH FXOWXUH RI WKH 2WKHUV DQG WKXV
³PDUJLQDOLW\ LV WKH FRQGLWLRQ FRQVWUXFWHG E\ WKH SRVLWHG UHODWLRQ WR D SULYLOHJHG
FHQWUH DQ µ2WKHULQJ¶ GLUHFWHG E\ WKH LPSHULDO DXWKRULW\´ $VKFURIW )RU LWV
DGYDQWDJHDQGVXSHULRULW\WKHFHQWUHFUHDWHVLWV2WKHU
3RVWFRORQLDO OLWHUDWXUH LV WKH YRLFH RI WKH VLOHQFHG VXEMHFWV RI WKH FRORQLDO
HUD ,W JLYHV VSDFH WR WKH GLVDJUHHPHQW EHWZHHQ WKH FRORQL]HG DQG WKH FRORQL]HU
DQG DOVR WR WKH GLYHUJHQFH EHWZHHQ WKH H[FRORQL]HG DQG WKH H[FRORQL]LQJ
QDWLRQVGXULQJDQGDIWHUWKHLQGHSHQGHQFHRIWKHIRUPDOO\FRORQL]HGQDWLRQV7KH
IUHTXHQWDUJXPHQWRIWKHSRVWFRORQLDOOLWHUDWXUHLV³WKHFHOHEUDWLRQRIWKHVWUXJJOH
WRZDUGV LQGHSHQGHQFH LQ FRPPXQLW\ WKH GRPLQDWLQJ LQIOXHQFH RI D IRUHLJQ
FXOWXUHRQWKHOLIHRIFRQWHPSRUDU\SRVWFRORQLDOVRFLHWLHVWKHMRXUQH\RIWKH
(XURSHDQ LQWHUORSHU WKURXJK XQIDPLOLDU ODQGVFDSH ZLWK D QDWLYH JXLGH WKH
H[LOH´ $VKFURIW 7KHUHIRUH WKH SRVWFRORQLDO ZRUNV EH\RQG WKHLU
SDUWLFXODUDQGSURYLQFLDOGLVWLQFWLYHQHVVKDYH³HPHUJHGLQWKHLUSUHVHQWIRUPRXW
RI WKH H[SHULHQFH RI FRORQL]DWLRQ DQG DVVHUWHG WKHPVHOYHV E\ IRUHJURXQGLQJ WKH
WHQVLRQ ZLWK WKH LPSHULDO SRZHU DQG E\ HPSKDVL]LQJ WKHLU GLIIHUHQFHV IURP WKH
DVVXPSWLRQVRIWKHLPSHULDOFHQWUHLWLVWKLVZKLFKPDNHVWKHPGLVWLQFWLYHO\SRVW
FRORQLDO´ $VKFURIW 7KH SRVWFRORQLDO WH[WV IRUHJURXQG WKH H[SHULHQFHV RI
FRORQL]DWLRQDQGWKHWHQVLRQDULVLQJRXWRIDQLQWHUIDFHRIWKHQRQZKLWHVDQGWKH
LPSHULDOSRZHUV
/LNH&RQUDGDQG)RUVWHU*HRUJH2UZHOODOVRKLJKOLJKWVWKHWHQVLRQVZKLFK
HPHUJH ZKHQ WZR UDFHV LQWHUDFW ZLWK HDFK RWKHU +H VHHV WKH LPSDFW RI WKH
EXUHDXFUDWLVHG RUJDQL]DWLRQV RQ WKH FRORQL]HG DV ZHOO DV WKH FRORQL]HUV 2UZHOO
GHSLFWV WKH SOXUDOLW\ RI FRQVFLRXVQHVV +H QRW RQO\ SDLQWV WKH SLFWXUH RI WUXH
FRORQLDOLVPDQGWKHRSSUHVVLRQXSRQWKHQDWLYHFXOWXUHEXWDOVRLOOXVWUDWHVXVLQJ
%KDNWLQLDQSKUDVHWKH³DJRQLVLQJVHOIDZDUHQHVV´RIWKHFRORQL]HUV%KDNWLQ
2UZHOO WKLQNV WKDW LPSHULDOLVP DIIHFWV WKH GRPLQDWRUV DQG WKH GRPLQDWHG ERWK
*HRUJH2UZHOO¶V'RZQDQG2XWLQ/RQGRQDQG3DULVDQRQILFWLRQWDONV
DERXW SDXFLW\ KRPHOHVVQHVV DQG VXUYLYDO RQ SRRUO\7SDLG HPSOR\PHQW
+LV%XUPHVH 'D\V LV D VWXG\ RI WKH %ULWLVK FRORQLDOLVP ³6KRRWLQJ DQ
(OHSKDQW´IXQFWLRQVDVDVXSSOHPHQWWR%XUPHVH'D\V,QKLVDQWKRORJ\RIHVVD\V
³6KRRWLQJDQ(OHSKDQWDQG2WKHU(VVD\V´2UZHOOQDUUDWHVWKHFRQGLWLRQVDQGWKH
FLUFXPVWDQFHVWKDWWKHZULWHUIDFHGZKLOHOLYLQJLQ%XUPD7KHZRUNFRQFHQWUDWHV
RQ WKH GLVFUHSDQF\ EHWZHHQ WKH DXWKRU¶V SHUVRQDO PRUDOLW\ DQG KLV GXW\ WR KLV
FRXQWU\ LH WR WKH ZKLWH PDQ¶V EXUGHQ DQG KLV VXSHULRULW\ ,W GHVFULEHV KLV
GLVSOHDVXUH ZLWK WKH %ULWLVK (PSLUH DQG WKH LPSHULDO GRPLQDWLRQ 7KHVH HVVD\V
LOOXVWUDWH PDQ¶V ZDU ZLWK DXWKRULW\ DQG DOVR ZLWK KLV RZQ VHQVLWLYH LQQHU VHOI
7KH\DOVRGHDOZLWKWKHFXOWXUHRIK\EULGLW\EHWZHHQWKH%ULWLVKDQGWKH%XUPHVH
7KH %ULWLVK WDNH GHOLJKW LQ WKH SURSDJDWHG LQIHULRULW\ RI WKH %XUPHVH DQG
FRQYHUVHO\ WKH QDWLYHV GHVSLVH WKH ZKLWH UXOHUV IRU WKH VSUHDG RI W\UDQQ\ DQG
GHYDVWDWLRQ
7KHHVVD\³6KRRWLQJDQ(OHSKDQW´WDONVDERXWWKHQDUUDWRU¶VFRPSXOVLRQWR
VKRRW DQ HOHSKDQW 6LQFH WKH QDUUDWRU GRHV QRW ZLVK WR DSSHDU LUUHVROXWH DQG
VSLQHOHVVWR%XUPHVHUHVLGHQWVVRKHIHHOVFRQVWUDLQHGWRVKRRWWKHDQLPDO2UZHOO
VWDWHV WKDW LPSHULDOLVP DIIHFWV WKH RSSUHVVHG DV ZHOO DV WKH RSSUHVVRU 7KH
RSSUHVVRU LV FRPSHOOHG E\ WKH KHJHPRQ\ WR DFW LPPRUDOO\ DQG WR NHHS XS
DSSHDUDQFHVSURSDJDWHGE\WKHZHVWHUQGLVFRXUVHV2UZHOOUHDOLVHVWKDWWKHDJHQWV
RI WKH UXOLQJ DXWKRULW\ DUH ZURQJ LQ ZKDW WKH\ GR EXW WKH\ PDVN WKHLU WKRXJKWV
DQG DFWLRQV LQ WKHLU DGKHUHQFH WR WKH SRZHU FRGHV RI LPSHULDOLVP 7KH QDUUDWRU
GHVSLVHV WKH %ULWLVK 5DM ZKLFK KH VHUYHV DQG DOVR WKH SHRSOH KH RSSUHVVHV +H
XQGHUVWDQGV DQG MXVWLILHV WKH ORDWKLQJ DQG KDWUHG RI WKH QDWLYHV EXW WKH\ GHVSLVH
KLP DQG VHH KLP DV D IRUHLJQ RSSUHVVRU $FFRUGLQJ WR 2UZHOO WKH LPSHULDO
DXWKRULW\ V\PEROLVHV LQGHVWUXFWLEOH W\UDQQ\ DQG WKH QDWLYHV KDYH WR VXEPLW WR
WRUWXUH DQG FUXHOW\ 6RPHWLPHV LW EHFRPHV GLIILFXOW WR GHWHUPLQH LI 2UZHOO
DSRORJL]HVIRURUGHQRXQFHVLPSHULDOLVP7KURXJKKLVZRUNV2UZHOOSUHVHQWVKLV
DEKRUUHQFHDJDLQVWH[HUFLVHRISRZHUE\WKHUXOLQJDXWKRULWLHVDQGWKHULFKZKLWH
UDFH :KLOH WKH %ULWLVK RIILFHU V\PEROL]HV FRORQLDOLVP DQG LPSHULDO SRZHU DQG
WKHHOHSKDQWVLJQLILHVWKHYLFWLPVRILPSHULDOLVP
2UZHOO WDONV DERXW WKH LQIOXHQFH RI FRORQLDOLVP RQ WKH FRORQL]HU DQG WKH
FRORQL]HG ERWK EXW .LSOLQJ LV VHHQ DV D WKRURXJK ,PSHULDOLVW +LV SUHMXGLFHG
DWWLWXGH WRZDUGV %ULWLVK UXOH LQ ,QGLD LV XQDFFHSWDEOH DQG LQGLJHVWLEOH LQ WKH
SRVWFRORQLDO HUD 7KH (PSLUH KDG D ZHLJKW\ LQIOXHQFH RQ 5XG\DUG .LSOLQJ¶V
OLWHUDU\ FUHDWLYLW\ DQG RQ WKH FUHDWLRQ RI WKH GLVWLQFWLYH OLYHV WKDW KLV FKDUDFWHUV
DUHPDGHWROHDG+HGRHVQRWTXHVWLRQRUGLVPLVVWKHWUDXPDWLFUXOHRIWKH(PSLUH
RYHU WKH ,QGLDQV 7KLV LPSHULDOLVW EHOLHYHV LQ WKH LGHRORJ\ RI WKH ZKLWH PDQ¶V
EXUGHQ DQG WKH WKHRULHV RI PRUDOLW\ WKDW WKH (PSLUH VSUHDGV 2Q WKH VXUIDFH KLV
.LPLVDQDXGDFLRXVDQGH[RWLFWDOHRIDGYHQWXUHRYHUVHDVEXWDWDDQRWKHUOHYHO
WKH QRYHO HPERGLHV WKH DXWKRU¶V SHUFHSWLRQ RI WKH LPSHULDO KHJHPRQ\ DQG WKH
QDWLYHUHVLVWDQFH,WWDONVDERXWWKHFRQIURQWDWLRQEHWZHHQWKHQRQZKLWHPHQWDOLW\
DQG%ULWLVKVXSUHPDF\WKURXJKWKHWZRFKDUDFWHUV%DEX+XUUHH&KDQGHUDQG.LP
UHVSHFWLYHO\%RWKWKHFKDUDFWHUVDUHWKHSURGXFWVRIDFRORQLDOXSEULQJLQJLQDVR
FDOOHG FKDRWLF DQG GRPLQDWHG VRFLHW\ %XW .LP RFFXSLHV WKH KRQRXUHG SHGHVWDO
EHFDXVHKHEHORQJVWRWKHDXWKRULWDWLYHUXOLQJPLQRULW\DQG+XUHH%DEXILWVLQWKH
FDWHJRU\ RI DQ LQVLJQLILFDQW 2WKHU 7KHUHIRUH .LSOLQJ FUHDWHV +XUHH %DEX DV D
ELQDU\ RSSRVLWH DQG DQ DQWLVHOI WR .LP LQ RUGHU WR OD\ VWUHVV XSRQ DQ XQHTXDO
GLFKRWRP\ EHWZHHQ WKH VXSHULRULW\ RI WKH ZKLWH PDQ DQG WKH LQIHULRU UDFHV
0RUHRYHU.LSOLQJ¶VZRUNVDOVRVKRZWKDWKHGRHVQRWREMHFWWRWKHXQVKDNHDEOH
FUHGHQFH RI WKH FRORQL]HUV WKDW WKH QRQZKLWHV RXJKW WR EH DGPLQLVWHUHG E\ WKH
FRORQL]HUV
$W WLPHV OLNH (0 )RUVWHU .LSOLQJ DOVR H[SRVHV WKH XQNLQGQHVV DQG
FKDXYLQLVPRIWKHFRORQL]HUV²VRPHWLPHVKHVKRZVWKDWWKHQDWLYHVRI,QGLDDUH
VXSHULRUWRWKH%ULWLVK²EXWZKDWFDQQRWEHLJQRUHGLVWKHIDFWWKDWHYHQWKLVLVD
QDUUDWLYHVWUDWHJ\WRUHSUHVHQW.LP¶VVXSHULRULW\RYHUWKHQDWLYHVRIWKHFRORQL]HG
ODQG.LSOLQJDOZD\VEHOLHYHGWKDWWKH(DVWDQGWKH:HVWFRXOGQHYHUUHDOO\PHHW
DQG.LPVXEVWDQWLDWHVKLVIDLWK+HQFH.LSOLQJ¶VSDVVLRQDWHEHOLHILQWKH %ULWLVK
(PSLUHDQGLQ%ULWLVKVXSUHPDF\KHOSWKHSRVWFRORQLDOUHDGHUVWRODEHOKLPDVD
FKDXYLQLVWLF LPSHULDOLVW $FFRUGLQJ WR 7HZDUL DV DJDLQVW .LSOLQJ &RQUDG LV QRW
FRQIRUPLVW ³RI %ULWLVK ILFWLRQ EXW FRPHV RXW IUDQNO\ DJDLQVW ZKDW LV GHDG DQG
URWWHQLQWKHZKLWHGRPLQDQFHIRUWKDWPDWWHUGRPLQDQFHRIDQ\UDFHFRPPXQLW\
QDWLRQ RYHU WKH RWKHU´ 7HZDUL &RQUDG¶V ILFWLRQ JLYHV H[SUHVVLRQ WR WKH
VXSSUHVVHG YRLFHV +H SRUWUD\V D WUXHU SLFWXUH RI WKH QDWLYHV FDXJKW LQ WKH
DXWKRULWDULDQ VKDFNOHV RI WKH FRORQLDO VHWXS 7KH SXUSRVH RI WKH GLVVHUWDWLRQ
ZRXOGEHWRFDUHIXOO\DVNLVWKHH[SUHVVLRQRIWKHVXSSUHVVHGYRLFHVDQGGHSLFWLRQ
RIWKHGDUNVLGHRIDXWKRULWDULDQLVPLPSDUWLDOLQ&RQUDG"7KHWKHVLVVFUXWLQLVHVLI
&RQUDG OLNH .LSOLQJ DSSUHFLDWHV DQG VXSSRUWV WKH ZKLWH VXSUHPDF\ DQG %ULWLVK
LPSHULDOLVPRUZKHWKHUKHEULQJVWROLJKWWKHGXDOLW\LQWKHLPSHULOUXOH
%HIRUH SUHVHQWLQJ IXUWKHU GHWDLOV DERXW WKH DLP RI SRVWFRORQLDOLVP D EULHI
DFTXDLQWDQFHZLWKWKHKLVWRU\RILPSHULDOLVPZRXOGEHKHOSIXO,PSHULDOLVPUHIHUV
WRWKHDXWKRULW\ZKLFKDVWDWHSUHVXPHVRYHUDQRWKHUWHUULWRU\DQGH[SUHVVHVLWLQ
FHUHPRQ\ V\PEROLVP DQG PLOLWDU\ SRZHU 7KH JHRJUDSKLFDO ZHVWHUQ (XURSH
H[WHQGHGLWVUXOHGRPLQDQFHKHJHPRQ\DXWKRULW\FXOWXUHKLVWRU\DQGODQJXDJH
RQ WKH RWKHU SDUWV RI WKH ZRUOG LQKDELWHG E\ WKH QRQZKLWH UDFHV 7KH (XURSHDQ
SRZHUVFRXOGGRPLQDWHWKHQRQZKLWHODQGVEHFDXVHLWKDGPDVWHUHGWKHVFLHQWLILF
PHWKRGVDQGGHYHORSHGWUDGHFRPPHUFHLQGXVWU\DQGHTXLSPHQWWRXQSDUDOOHOHG
KHLJKWV,PSHULDOLVPZDVDPXOWLIDFHWHGFRQVWUXFWWKDWZDVQRWRQO\PRWLYDWHGE\
HFRQRPLFUHDVRQVEXWE\PDQ\RWKHUOLNHVRFLDOSROLWLFDODQGSHUVRQDOHWF
³7KH VHDUFK IRU WKH FDXVHV RI QLQHWHHQWK FHQWXU\ LPSHULDOLVP KDV VSDZQHG
RQHRIWKHOLYHOLHVWGHEDWHVLQPRGHUQKLVWRU\+LVWRULDQVKDYHRIIHUHGDZHDOWKRI
H[SODQDWLRQVIRUWKLVGUDPDWLFH[SDQVLRQRI(XURSHDQSRZHU´EXWWKHFULWLFVKDYH
QRW EHHQ DEOH WR UHDFK D FRQVHQVXV +HDGULFN ,QLWLDOO\ WR GHIHQG LWVHOI WKH
(PSLUH SURSRXQGHG WKH YLHZV WKDW WKH %ULWLVK XQLQWHQWLRQDOO\ DQG DFFLGHQWDOO\
FDPHXSRQPRVWRIWKHQRQZKLWHODQGZKLFKPHDQWWKDWWKH\GLGQRWKDYHLQPLQG
DQ\H[SORLWDWLYHPRWLYH6WDWLQJWKHUHDVRQEHKLQGWKHDERYHYLHZV-DPHV0RUULV
VD\V WKDW ³YDULRXV SLHFHV RI WKH (PSLUH KDG DFFUXHG VR JUDGXDOO\ RIWHQ VR
LPSHUFHSWLEO\OLNHOD\HUVRIPROOXVNVFOLQJLQJWRDURFNLQWKHHEEDQGIORZRIWKH
WLGH WKDW WKH SURFHVV VHHPHG DOWRJHWKHU PRWLYHOHVV´ 0RUULV 7KLV LV ZKDW LV
SURMHFWHG E\ WKH OLNHV RI +HDGULFN EXW WKH %ULWLVK (PSLUH ZDV D SROLWLFDO
LQVWUXPHQW RI WKH ODWH QLQHWHHQWK FHQWXU\ DQG LWV VROH SXUSRVH ZDV WR LQFUHDVH
EXVLQHVV SURILWV E\ DFFXPXODWLQJ UDZ PDWHULDO IURP WKH FRORQLHV DW FKHDS SULFHV
DQGVHOOLQJWKHPDQXIDFWXUHGJRRGVLQWKHVDPHFRORQLHVDWPXFKSURILWDEOHUDWHV
'RPLQDQFH DQG GLVFULPLQDWLRQ RQ WKH EDVLV RI SRZHU DQG ZHDOWK ³DUH
SHUHQQLDO IDFWV RI KXPDQ VRFLHW\ %XW LQ WRGD\¶V JOREDO VHWWLQJ WKH\ DUH DOVR
LQWHUSUHWDEOH DV KDYLQJ VRPHWKLQJ WR GR ZLWK LPSHULDOLVP LWV KLVWRU\ LWV QHZ
IRUPV´5LFH&RORQLDOLVPLQYROYHVWKHFRQVROLGDWLRQRILPSHULDOSRZHUDQG
WKH HQGHDYRXU WR DGPLQLVWHU WKH QDWLYH SRSXODFH RI WKH RFFXSLHG GRPDLQ 7KH
LPSHULDOVHWXSWRMXVWLI\LWVH[SDQVLRQSURSDJDWHGLPSHULDOLVWLGHRORJLHVWKDWJLYH
HWKLFDO DXWKRUL]DWLRQ WR FRORQLDOLVP 7KHVH LGHRORJLHV DQG P\WKV IRVWHU LQ WKH
GRPLQDWHG SHRSOH DQ LQIHULRULW\ FRPSOH[ WKDW IRUFHV WKHP WR LGHQWLI\ WKHPVHOYHV
DVLQIHULRUPHPEHUVRIDUXOLQJUDFHKHJHPRQ\SRZHUDQGDXWKRULW\7KHFRORQLDO
DJHQWV LQWUXGH LQWR WKH QRQZKLWH VRFLHWLHV DQG WHDU WKH QDWLYHV DZD\ IURP WKHLU
SUHYLRXV WHFKQLTXHV DQG SURFHGXUHV RI SURGXFWLRQ WKHLU IDPLOLDU VRFLDO SROLWLFDO
DQGHFRQRPLFIUDPHZRUNDQGWKHLUIRONDQGRUDOOLWHUDWXUH
'XULQJ WR WKH FRORQLDO FRQTXHVWV ZHUH DW WKHLU SHDN 7KH HYHU
JURZLQJGHVLUHVIRUWKHUDZPDWHULDORIWKHJURZLQJLQGXVWULDOL]HGFRXQWULHVDQG
WKHLUHYHUH[SDQGLQJLQYHVWPHQWRSSRUWXQLWLHVLQWKHWURSLFVZHUHUHVSRQVLEOHIRU
QDWLRQV OLNH %ULWDLQ *HUPDQ\ -DSDQ DQG 8QLWHG 6WDWHV WR LQYDGH WKH HYHU
GLPLQLVKLQJ VSDFHV RI WKH (DUWK 'XULQJ WKLV SKDVHWKH ³DFFHVV WR DQG FRQWURO RI
WKH WURSLFV SDUWLFXODUO\ EHFDPH D FRPSHOOLQJ LVVXH RI SXEOLF GLVFXVVLRQ DQG
(XURSHDQ ULYDOU\´ 6WDSH 0RUHRYHU WKH WURSLFDO ODQGV SURYLGHG WKHP ZLWK
WKHUHTXLUHGUDZPDWHULDOVOLNHUXEEHUDQGIRRGVWXIIOLNHFRFRDWHDFRIIHHFDQH
DQGVXJDUHWF:KHQDOOWKHSRZHUVZHUHILJKWLQJWRJHWKHUIRUWKHLQYDVLRQRIWKH
QRQZKLWH ODQGV LW LQWHQVLILHG WKH ULYDOU\ DPRQJVW WKH UXOLQJ QDWLRQV 7KXV
WRZDUGVWKHODWHQLQHWHHQWKFHQWXU\DQGE\WKHEHJLQQLQJRIWKHWZHQWLHWKFHQWXU\
PRVWRIWKHZRUOGKDGFRPHXQGHUWKHUXOHRIWKHELJDQGSRZHUIXOQDWLRQVZKLFK
³KDG EHFRPH SRZHUIXO KXEV RI ZRUOG ILQDQFH ZKLOH WKH PHUFKDQW QDY\ &RQUDG
VHUYHG KDG EHFRPH RQH RI WKH OHDGLQJ FDUULHUV RI UDZ PDWHULDOV DQG ILQLVKHG
SURGXFWV´6WDSH
,PSHULDOLVPZDVSURPRWHGDVDPRYHIRUWKHEHQHILWRIWKHFRORQL]HGEXWLW
ZDV DOZD\V DFFRPSDQLHG ZLWK SOXQGHU JUHHG DQG H[SORLWDWLRQ RI WKH QRQZKLWH
SHRSOH DQG WKH QRQZKLWH ODQGV 7KH RFFXSLHG SHRSOH ZHUH LQ QR SRVLWLRQ WR
FRXQWHU WKH WKUHDW WKDW FDPH WR WKHP IURP RXWVLGH ,PSHULDOLVP ZDV DFWXDOO\ D
SROLF\RIH[SDQVLRQIRUWKHEHQHILWVRIDIHZ%\WKHWLPH&RQUDGVWDUWHGZULWLQJ
KHKDGDOUHDG\EHJXQWRGRXEWWKHWUXWKIXOQHVVRIWKHLPSHULDOWUDGH+HFRXOGVHH
WKH UHDOLW\ RI WKH HQWHUSULVH VKURXGHG LQ WKH VRFDOOHG WKH UKHWRULF RI WKH
FRORQLDOLVW¶V FLYLOL]LQJ PLVVLRQ +H GHSLFWV WKH GLVSDULW\ EHWZHHQ WKH GHHGV RI
LPSHULDOORUGVDQGWKHUHDOLW\RIWKHYHUDFLW\RIVHL]LQJWKHODQGLWVSHRSOHDQGLWV
FXOWXUH&RQUDGVKRZVWKHVXIIHULQJRIWKHFRORQL]HGIURPDQDZIXOYLVLWDWLRQE\
(XURSH+HGHPRQVWUDWHVWKDWWKHSHRSOHRIWKHFRORQL]HGVWDWHVKDYHWREUHDWKHLQ
WKHDWPRVSKHUHRIGHVSRWLVPDQGOLYHLQDFFRUGDQFHZLWKWKHDUELWUDU\ZLOORIDQ
DXWRFUDWLFUXOH6XFKDUXOHE\WKHSRZHUIXOIRUHLJQIRUFHVILOOVWKHQDWLYHVZLWKWKH
SRLVRQ RI VODYHU\ DQG LPPHUVHV WKHP LQ WKH DSDWK\ RI DQ XQSURPLVLQJ DQG
GHVSHUDWHVWRLFLVP
*HQHUDOO\ LPSHULDOLVP LV DVVRFLDWHG ZLWK SROLWLFDO (PSLUH RU WKH
GRPLQDWLRQ RI RQH QDWLRQ RYHU WKH WHUULWRU\ DQG SHRSOH RI WKH RWKHU FRXQWU\
,PSHULDOLVP FRYHUV DOO WKH UHODWLRQVKLSV RI GRPLQDWLRQ H[WHQVLRQ GHSHQGHQFH
VXSUHPDF\ FRPPDQG LQIOXHQFH SRZHU DXWKRULW\ DQG UDFLDO DQG VH[XDO
LQHTXDOLWLHV 7KH WHUP LPSHULDOLVP KDV EHHQ DVVRFLDWHG ZLWK H[SUHVVLRQV OLNH
FRORQLDOLVPPRQRSRO\SULYDWHHQWHUSULVHWRWDOLWDULDQLVPGHVSRWLVPW\UDQQ\DQG
QHRFRORQLDOLVP 7KH LPSHULDO SURJUHVV DQG DQQH[DWLRQ RI WKH UHVW RI WKH ZRUOG
ZDVYHLOHGZLWKWKHUKHWRULFRIGHYHORSPHQWDQGEHQHYROHQFHZKLFK&RQUDGFRXOG
HDVLO\GHWHFWDQGDVDUHVXOWKHSUHVHQWVWKHUHDOLW\RIWKHLPSHULDOPLVVLRQLQKLV
ZRUNV,QRUGHUWROHJLWLPLVHLWVUXOHWKHVXSHULRUSDWULDUFKDOZHVWHUQFLYLOL]DWLRQ
LQYHQWHGDQGSRSXODUL]HGFHUWDLQVWHUHRW\SHV,QKLVZRUNV&RQUDGVKRZVKRZWKH
GHYHORSPHQWRIWKHLPSHULDOPLVVLRQVXSSRUWHGZLWKWKHLGHDRIEHQHYROHQFHDQG
WURSHV WXUQHG LQWR WRWDOLWDULDQLVP IRUFHIXO WHUULWRULDO RFFXSDWLRQ DQG
H[SDQVLRQLVP 7KH HQIRUFHG UXOH OHG WR PDVVDFUH EORRGVKHG GHVWUXFWLRQ RI WKH
QRQZKLWHODQGVDQGUDFHV+HH[SRVHVWKHWUXWKEHKLQGWKHVRFDOOHGEHJLQQLQJ
RI FLYLOL]DWLRQ FXOWXUH HGXFDWLRQ NQRZOHGJH DQG OLJKW 7KH ILUVW FKDSWHU
VFUXWLQL]HVZKHWKHU&RQUDGKDVVXFFHVVIXOO\EHHQDEOHWREULQJRXWWKHWUXWKRIWKH
GLVFRXUVH SURGXFHG E\ WKH UDFLDOO\ VXSHULRU ZKLWH SHRSOH DV D GHIHQFH IRU WKHLU
LQWUXVLRQLQWRWKHQRQZKLWHODQGV"
7KH LPSHULDO VHWXS SURSDJDWHG WKH UKHWRULF RI SURJUHVVLRQ ZKLFK UHMHFWHG
WKHFRPPRQDOLWLHVEHWZHHQWKH5RPDQVDQGWKH%ULWLVK7KH5RPDQVZHUHEUXWH
FRQTXHURUV ZKR SOXQGHUHG WKH QRQZKLWH ODQGV DQG ORRWHG WKH SHRSOH EXW WKH
DGYRFDWHGSXUSRVHRIWKH%ULWLVKLVWRWDNHWKHOLJKWRINQRZOHGJHDQGSURJUHVVWR
WKHRVWHQVLEOHQRQZKLWHODQGVIRUWKHEHQHILWRIWKHQDWLYHV7KHGHVLJQRI³WKH
EUDYH QHZ ZRUOG´ ZDV SODFHG LQ RSSRVLWLRQ WR ³WKH UDSDFLRXV ILUVW JHQHUDWLRQ RI
EDQGLWNLQJVZKRFRQTXHUHGWKHFRORQLHV´DQGWKH\³UREEHGPDLPHGDQGNLOOHG
EXWVRPHWLPHVWKH\GLGVRZLWKRXWDFLYLOL]LQJPLVVLRQDQGPRVWO\ZLWKRQO\FUXGH
FRQFHSWVRIUDFLVP´1DQG\[[L7KH:HVWSURFODLPVWRKDYHRYHUZKHOPHG
WKH RIIHQVLYH SLWLOHVV PDOLFLRXV DQG XQLQWHOOLJHQW HUD RI WKH µEDQGLWNLQJV¶ DQG
UHSODFHGLWZLWKWKHDXWKRULW\WKDWLVDSUHUHTXLVLWHIRUWKHOLEHUDWLRQRIWKHQDWLYHV
IURPWKHGDUNQHVVRIWKHVXSHUVWLWLRQVIODZHGP\WKVDQGIDOODFLHV6DOPRQTXRWHG
LQ&KLOGV¶WH[WGLVFXVVHVWKHVDPHLVVXH
7KH%ULWLVKQDWLRQVRXJKWWRUDWLRQDOL]HLWVEHKDYLRXUDQGWRDVNLWVHOI
ZKHWKHU ZKDW LW ZDV GRLQJ ZDV HLWKHU PRUDOO\ ULJKW RU PDWHULDOO\
ZRUWKZKLOH $QG LW ZDV LQ WKDW DJH RI PLVVLRQDU\ ]HDO WKDW WKHUH
HPHUJHGDYLHZRIWKHSXUSRVHRIHPSLUHWKDWZDVRIWHQFRPSDUHGDW
WKDWWLPHWRWKDWRI5RPH7KH%ULWLVK(PSLUHLWZDVWKRXJKWZRXOG
EULQJDQHZHUDRISHDFHLQZKLFKXQLW\DQGJRRGJRYHUQPHQWZRXOG
VSUHDGRYHUWKHZRUOGDVLQWKHEHVW\HDUVRIWKH3D[5RPDQD&KLOGV
:KHQWKH³WKHKLJKULVHIODWGZHOOHUVRIILFHZRUNHUVDQGXQDVVLPLODWHGPXOWL
UDFLDO>%ULWLVK@PLQRULWLHV´ZHQWWRWKH³VXEXUEDQL]HGFRXQWU\VLGH´FRORQLHVWKH\
SURPXOJDWHGWKDWWKHFRORQLHVDQGLWVSHRSOHXQGHUWKHLULQVWUXFWLRQZRXOGEHDEOH
WR DFKLHYH KDSSLQHVV LQGHSHQGHQFH ZHOO HVWDEOLVKHG SROLWLFDO DQG HFRQRPLF
RUJDQL]DWLRQV&KLOGV7RUDWLRQDOL]HWKHLUUKHWRULFWKHZKLWHSHRSOHHPSKDVL]HG
RQ WKHLU RYHUVWDWHG DSSHDUDQFHV QRELOLW\ JUDFLRXVQHVV DULVWRFUDF\ DQG
FLYLOL]DWLRQ $QG WKHUHIRUH LQ WKH OLWHUDWXUH RI WKH GRPLQDWLQJ WKH FRORQL]HG DUH
DOOHJRUL]HGDVXQVRSKLVWLFDWHGXQFXOWXUHGXQUHDVRQDEOHDQGLQWLPLGDWLQJ
7KH FRQFHSW RI FRORQLDOLVP DV DQ LQVWUXPHQW RI SURJUHVV LV VXEVWDQWLDWHG
ZLWKWKHWKHRU\WKDW³FRORQLDOLVPPLQXVDFLYLOL]DWLRQDOPLVVLRQLVQRFRORQLDOLVP
DWDOO´1DQG\7KH³K\SHUFRPSHWLWLYHDFKLHYHPHQWRULHQWHGRYHURUJDQL]HG
SULYDWH´ FRPPXQLW\ RI WKH UXOLQJ UDFH RYHUVWDWHG LWV RZQ KHWHURJHQHRXV FXOWXUH
DQG XQGHUSOD\HG WKH HWKLFDO WUDGLWLRQV RI WKH (DVW 1DQG\ 7KRVH ZKR ZHUH
LQWHUHVWHG LQ WKH FRQTXHVW DQG DQQH[DWLRQ LQ WKH QLQHWHHQWK FHQWXU\ MXVWLILHG WKH
GULYHWKH\SDUWLFLSDWHGLQZLWK³HYROXWLRQLVWQRWLRQVRIUDFLDOVXSHULRULW\´:DOGHU
:LWKWKHLUSHUFHSWLRQVRIWKHSKLODQWKURSLFGHVLUHWKH:HVWIRUJHWVWKDWWKH\
DFWXDOO\ ³FRORQL]H PLQGV LQ DGGLWLRQ WR ERGLHV DQG LW UHOHDVHV IRUFHV ZLWKLQ WKH
FRORQL]HG VRFLHWLHV WR DOWHU WKHLU FXOWXUDO SULRULWLHV RQFH IRU DOO´ 1DQG\ [L 7KH
(XURSHDQVGHILQHFRORQLDOLVPDVDFXOWXUHZKLFKGRHVQRWRQO\EHJLQDQGHQGZLWK
WKHDGYHQWDQGWKHGHSDUWXUHRIWKHUXOHUVEXWLWLVDOVRDFXOWXUHDVWDWHRIPLQGD
SHUFHSWLRQZKLFKKDVEHHQODERULRXVO\GHYHORSHGE\WKH:HVWIRUWKHFRORQLHVDQG
LWV JHQHUDWLRQV WR FRPH %HKLQG WKH IDoDGH RI EHLQJ WKH DJHQWV RI SURJUHVV WKH
ZKLWHQHJRWLDWRUVLQWKHQRQZKLWHODQGVSURPRWHWKHSURIHVVHGEDUEDULW\DQGWKH
VDYDJHU\ RI WKH QDWLYHV 7KH :HVW SURGXFHV WKH FRQFHSWV DQG GHIHQFHV RQO\ WR
VXEVWDQWLDWHWKHLUW\UDQQLFDOUXOH7KXVWRREVFXUHWKHLUIHHOLQJVRIJXLOWWKHZKLWHV
EXLOW IRUWLILFDWLRQ DJDLQVW WKHLU H[SORLWDWLYH SROLFLHV RI GLVFULPLQDWLRQ SUHMXGLFH
DQGLQMXVWLFH
0RUHRYHUWKHLPSHULDOSRZHUVWU\WRDQQLKLODWHGHVWUR\DQGH[WLQJXLVKWKH
FXOWXUHWKHLGHQWLW\WKHODQJXDJHVWKHEDFNJURXQGWKHOHJDF\DQGWKHXQLW\RIWKH
QRQZKLWHFRPPXQLW\7KHFXOWXUDODQGWKHKLVWRULFDOSDVWRIWKHQRQZKLWHSHRSOH
QRZ EHFRPH ³RQH ZDVWHODQG RI QRQDFKLHYHPHQW DQG LW PDNHV WKHP ZDQW WR
GLVWDQFH WKHPVHOYHV IURP WKDW ZDVWHODQG´ 7KLRQJ¶R 7KH QDWLYHV ZDQW WR
LGHQWLI\ WKHPVHOYHV ZLWK WKH ODQJXDJH FXOWXUH DQG DWPRVSKHUH WKDW LV QRW WKHLU
RZQ$OVRWKHLPSHULDODXWKRULWLHVLQWURGXFHOLWHUDF\EXWFRQILQHLWWRWKHSHRSOH
RI WKHLU RZQ XVH OLNH VROGLHUV FOHUNV DQG FLYLO VHUYDQWV 7KH VLWXDWLRQ EHFRPHV
SDUDGR[LFDOZKHQRQWKHRQHKDQGWKHLPSHULDOGRPLQDWLRQUHVXOWVLQFRUUXSWLRQ
GHJHQHUDWLRQ GHVSDLU GLVLQWHJUDWLRQ GLVSODFHPHQW DQG GLVORFDWLRQ RI WKH QRQ
ZKLWH ODQG DQG FXOWXUH DQG RQ WKH RWKHU LW SUHVHQWV LWVHOI DV D PHDQV RI FXUH
UHVWRUDWLRQ DQG UHVWLWXWLRQ RI WKH QRQZKLWHV 7KH SXUSRVH RI LPSHULDO IRUFHV LV
DFKLHYHGZKHQWKHGHSHQGHQWFRPPXQLW\EHJLQVWRHXORJL]HLW
$SRZHUIXOPHDQVWKDWWKHLPSHULDOVHWXSXVHVWRDFKLHYHLWVMXVWLILFDWLRQLV
LWV XVH RI ODQJXDJH 7KH IRUHLJQ ODQJXDJH LV PDGH WR VHHS GHHS LQWR WKH QDWLYH
FXOWXUHDQGWDNHSHRSOHDZD\IURPWKHLUURRWVWKHLUKLVWRU\WKHLUOLWHUDWXUHWKHLU
RZQZRUOGDQGILQDOO\IURPWKHPVHOYHV1JXJL:D7KLRQJ¶RVD\V³ODQJXDJHZDV
WKHPRVWLPSRUWDQWYHKLFOHWKURXJKZKLFKWKDWSRZHUIDVFLQDWHGDQGKHOGWKHVRXO
SULVRQHU7KHEXOOHWZDVWKHPHDQVRIWKHSK\VLFDOVXEMXJDWLRQ/DQJXDJHZDVWKH
PHDQVRIWKHVSLULWXDOVXEMXJDWLRQ´7KLRQJ¶R/DQJXDJHZRUNVQRWRQO\DVD
PHDQV RI LQWHUDFWLRQ GHDOLQJV DQG FRPPXQLFDWLRQ EXW LW DOVR EHDUV ZLWK LW WKH
HWKQLFLW\ RI LWV UHVSHFWLYH QDWLRQ &XOWXUH LV DOZD\V ³LQGLVWLQJXLVKDEOH IURP WKH
ODQJXDJHWKDWPDNHVSRVVLEOHLWVJHQHVLVJURZWKEDQNLQJDUWLFXODWLRQDQGLQGHHG
LWVWUDQVPLVVLRQIURPRQHJHQHUDWLRQWRWKHQH[W´7KLRQJ¶R$QGZKHQWKH
ODQJXDJH RI WKH GRPLQDWLQJ DXWKRULWLHV UHSODFHV WKH ODQJXDJH RI WKH QDWLYHV LW LV
DOVRDEOHWRVOD\WKHFXOWXUHRIWKHVHSHRSOH
:LWK WKH LPSRVLWLRQ RI (QJOLVK LQ WKH QRQZKLWH UHJLRQV WKH LPSHULDO
GRPLQDWLRQ FUHDWHV FRORQLDO DOLHQDWLRQ (QJOLVK HGXFDWLRQ LQ VFKRROV WDNHV WKH
QDWLYHFKLOGIDUDZD\IURPKLVQDWLYHODQJXDJHKLVDQFHVWRUVKLVSDUHQWVKLVSDVW
DQGKLVSUHVHQWDVZHOO7KHYDOXHVLQIXVHGLQKLPWKURXJKIRUHLJQODQJXDJHDQG
OLWHUDWXUH DUH QRW WKDW RI KLV SDUHQWV DQG JUDQG SDUHQWV EXW RI WKH SDUHQWV DQG
JUDQGSDUHQWVRIVRPHRWKHUFKLOGZKRLVUHPRWHIURPKLPDQGDOVRGRHVQRWKDYH
DQ\ UHODWLRQ ZLWK KLP 7KH QDWLYH FKLOG OHDUQV XQGHUVWDQGV VHHV DQG
FRQFHSWXDOL]HVLPDJHVLQDIRUHLJQODQJXDJH7KHVDPHFRQVHTXHQFHVFDQEHVHHQ
DPRQJWKHZULWHUVRIWKHFRORQL]HGQDWLRQV/LNHWKHFRORQL]HGFKLOGUHQWKHZRUNV
RI WKH FRORQL]HG ZULWHUVDUH DOVR DOZD\V DGXOWHUDWHG ZLWK WKH FRORXU RI GRPLQDQW
LGHRORJ\7KH\SURMHFWWKHLUFRQGLWLRQRIYRLFHOHVVQHVVDQGSRZHUOHVVQHVVLQDOLHQ
FRQWHQWVDQGIRUPV7KHFRORQLDOV\VWHPWKXVHQIRUFHVQRWRQO\LWVODQJXDJHDQG
GLDOHFW RQ WKH FRQTXHUHG EXW DOVR GHPRWHV WKHLU FROORTXLDO VSHHFK DQG WKHUHE\
LQIOXHQFHVWKHLUWKRXJKWSURFHVVHVYDOXHVLGHDOVPRUDOVDQGHWKLFV7KHQDWLYHV
WKHQEHFRPHDOLHQDWHGIURPWKHLUPRWKHUWRQJXHDQGWKHLURZQSHRSOH
2QWKHRQHKDQGWKURXJKWKHWRRORIODQJXDJHWKH(XURSHDQFRORQL]HUVJLYH
H[SUHVVLRQ WR WKHLU FXOWXUH FRQYH\ WKH LPSHULDOLVWLF LGHRORJLHV DQG LWV VXSSRVHG
VXSUHPDF\ DQG RQ WKH RWKHU KDQG WKH VDPH PHDQV RI H[SUHVVLRQ DUH SDUWLDOO\
GHQLHG WR WKH VXERUGLQDWHG /DQJXDJH XVHG E\ WKH (XURSHDQ SRZHUV LPSRVHV LWV
RZQ VRFLDO SROLWLFDO DQG FXOWXUDO GLVFRXUVH 7KH LPSHULDO ODQJXDJH FRPHV WR WKH
LQYDGHG FRORQLHV SDFNHG LQ WKH EDJJDJH RI WKH FRORQL]HU DQG UHQGHUV WKH
FRORQL]HGGXPEFKLOGOLNHDQGPXWH$QDQDO\VLVRILPSRVLQJWKHODQJXDJHRIWKH
VRFDOOHGVXSHULRUQDWLRQRYHUWKHFRORQL]HGVKRZVWKDWWKHVXSSRVHGO\ VXSHULRU
FXOWXUH V\VWHPDWLFDOO\ ZLSHV RXW WKH ODQJXDJH DQG FXOWXUH RI WKH HQVODYHG 7KLV
HQIRUFHPHQW RI WKH IRUHLJQ ODQJXDJH RYHU WKH QDWLYHV UHVXOWV LQ OLQJXLVWLF
HVWUDQJHPHQWDV$VKFURIWVD\V³RQHRIWKHPDLQIHDWXUHVRILPSHULDORSSUHVVLRQ
LV FRQWURO RYHU ODQJXDJH 7KH LPSHULDO HGXFDWLRQ V\VWHP LQVWDOOV D µVWDQGDUG¶
YHUVLRQRIWKHPHWURSROLWDQODQJXDJHDVWKHQRUPDQGPDUJLQDOL]HVDOOµYDULDQWV¶
DVLPSXULWLHV´$VKFURIW
)UDQW])DQRQFOHDUO\PDUNVFRORQLDOLVPDVDPLOLWDU\SURMHFW+H
H[SHULHQFHG UDFLVP DV D EODFN PDQ VHDUFKLQJ IRU KLV RZQ LGHQWLW\ LQ D ZKLWH
FRORQLDO FXOWXUH )DQRQ ZDV D 0DUWLQLTXHERUQ EODFN SV\FKLDWULVW DQG DQ DQWL
FRORQLDOLVWLQWHOOHFWXDO+HLQYHVWLJDWHGWKHQDWXUHRIUDFLVPDQGFRORQLDOLVPDQG
GHYHORSHG DQ DQWLLPSHULDOLVW VWDQFH 8VLQJ 0DU[LVW SV\FKRDQDO\WLF DQG
VRFLRORJLFDODQDO\VLVLQKLVIDPRXVZRUNV%ODFN6NLQ :KLWH0DVNVDQG
7KH :UHWFKHGRIWKH (DUWK)DQRQSUHVHQWVDFKDOOHQJLQJLQTXLU\LQWRWKH
GHKXPDQL]LQJQDWXUHRIFRORQLDORSSUHVVLRQWKHFRORQLDOHFFHQWULFLW\WKHUROHRI
YLROHQW EHKDYLRXU GXULQJ ILJKW IRU GHFRORQL]DWLRQWKH FKDOOHQJHV RI SROLWLFDO VHW
XSWKHFODVVFRQIURQWDWLRQDQGTXHVWLRQVRIFXOWXUDOKHJHPRQ\LQWKHFUHDWLRQDQG
PDLQWHQDQFHRIDQHZFRXQWU\¶VQDWLRQDOFRQVFLRXVQHVV)DQRQ¶VZRUNVDSSHDUHG
WRZDUGV WKH HQG RI FRORQLDOLVP ,Q WKH ZRUGV RI 6WXDUW 6LP )DQRQ¶V ILUVW ERRN
%ODFN6NLQ:KLWH0DVNVUHIHUVWRWKH³SV\FKRORJ\RIUDFLDOGLYLVLRQZKLFK)DQRQ
LGHQWLILHV LQ 0DQLFKDHDQ WHUPV ´ 6WXDUW ,Q KLV ZRUNV WKLV QRQZKLWH
SV\FKRORJLVWFULWLFDOO\DSSUDLVHVWKHFRORQLDOGLOHPPD
)DQRQDUJXHVWKDWWKH(PSLUHLQIOLFWVDQXQGLJQLILHGH[LVWHQFHXSRQLWVEODFN
YLFWLPV ,W FRPPDQGV WKHLU FRPSOLDQFH WR LWV GHIRUPHG HWKLFV )DQRQ VFUXWLQL]HV
WKH FRPPXQDO DQG SV\FKRVRPDWLF SURJUHVVLRQ E\ ZKLFK WKH UXOLQJ FRPPXQLW\
HVWUDQJHVWKHFRORQL]HGIURPWKHLULQGLJHQRXVFXOWXUHDQGKLVWRU\+HVKRZVWKDW
EODFNVDUHPDGHWRIHHOLQIHULRUEHFDXVHRIWKHLUFRORXUDQGWKXVWKH\DUHIRUFHGWR
LPLWDWHWKHZKLWHFXOWXUHDQGVRFLHW\+HH[SORUHVWKHGD\WRGD\LQWHUIDFHRIWKH
RSSUHVVHGDQGWKHRSSUHVVRU+HHQOLJKWHQVWKHUHDGHUVDERXWWKHWUDJLFV\PSWRPV
RI GHFRORQL]DWLRQ VXFK DV WKHEHOLHI WKDW YLROHQFH PXVW EH PHW ZLWK YLROHQFH WR
OLEHUDWH D QDWLRQ +H DGYRFDWHV WKDW LQVXUUHFWLRQ FRXOG RQO\ EH FDUULHG RXW E\
DJJUHVVLYHDQG ZHOOHTXLSSHGFRQIOLFW)DQRQEHOLHYHVWKDWRQO\ DFWLYLVWYLROHQFH
FDQ DEVROXWHO\ EUHDN WKH SV\FKRORJLFDO DQG FRUSRUHDO IHWWHUV RI D UDFLVW
FRORQLDOLVP7KHUHIRUHWKHSV\FKLDWULVWZKRVWXGLHGWKHG\QDPLFVRIUDFLVPDQG
LWVHIIHFWVRQWKHFRORQL]HGH[SODLQVWKHZHVWHUQDSSURDFKWRZDUGVWKHGRPLQDWHG
ZRUOGWKHZLOOLQJQHVVRIWKHGRPLQDWRUVWRXVHYLROHQFHWKHLUDVVDXOWRQ$IULFDQ
FXOWXUHDQGWKHFRUUXSWLRQRI$IULFDQOHDGHUVDIWHULQGHSHQGHQFH7RUHDG)DQRQ
LVWRUHDGWKHUDGLFDO%LEOHDGYLVLQJWKHRSSUHVVHGWREULQJWKHFRORQLDOSHULRGRI
ZRUOGKLVWRU\WRDQHQGE\DOOSRVVLEOHPHDQVLQFOXGLQJYLROHQFH
,QWKHOLJKWRIWKHDERYHIDFWVDERXWFRORQLDOLVPDVDWKUHDWWRWKHFXOWXUHRI
WKH RWKHU UDFHV WKH SRVWFRORQLDO WKHRU\ DQG SRVWFRORQLDO OLWHUDWXUH FRPH DV D
UHVFXH ,W DSSHDUV WR EH DQ HPDQFLSDWLQJ FRQFHSW 7KH WKHRU\ DQG OLWHUDWXUH WDON
DERXW WUDQVIRUPDWLRQ WKURXJK ZKLFK WKH QDWLYHV WU\ WR EULQJ EDFN WKHLU FXOWXUH
LGHQWLW\ ODQJXDJH KLVWRU\ DQG ORVW JORU\ 7KH SRVWFRORQLDO WKHRU\ VWXGLHV WKH
SURFHVV RI DSSURSULDWLRQ DQG ZULWLQJ DGRSWHG E\ WKH FRORQL]HG DQG WKH QHZO\
LQGHSHQGHQW VRFLHWLHV LQ RUGHU WR H[SUHVV WKHLU JULHI RYHU WKH FRQGLWLRQ RI WKH
VXIIHULQJ QDWLYHV ,W KLJKOLJKWV WKH H[SXUJDWLRQ RI WKH RFFOXGHG YRLFHV RI WKH
QDWLYHVRQWKHSHULSKHU\7KHODQJXDJHRIWKHFRORQL]HUVLVUHMHFWHGDQGWKHWUXWK
RIWKHWURSHVDQGVWHUHRW\SHVXVHGE\WKHFRORQL]HUVWRGHKXPDQL]HWKHQDWLYHVLV
SLFWXUHG3RVWFRORQLDOLVPH[SRVHVWKDWWKH(PSLUHKDVEHHQWU\LQJWR³MXVWLI\WKH
:HVW¶V JDODFWLF DPELWLRQV DQG HVWDEOLVK LWV WLWOH WR JOREDO SDUDPRXQWF\
LPSHULDOLVP¶V SURSDJDQGLVWV GHYLVHG WKH KHDG\ FRQFHLW RI (XURSH¶V PHVVLDQLF
GHVWLQ\DVWKHVDYLRXURIEHQLJKWHGSHRSOHVDVVHUWHGDVSURYHQWKHH[LVWHQFHRID
PDVWHU UDFH DQG UHSUHVHQWHG ZLWK LWV PDWHULDO FRQGLWLRQV DV RQH GHPDQGLQJ WRWDO
FRQWURORISK\VLFDOHQYLURQPHQW´3DUU\3RVWFRORQLDOWKHRU\LVWKHVWXG\RIWKH
ZUHWFKHGDQGWKHGLOHPPDVWULFNHQFRORQL]HGZKRDUHQRZGHFRORQL]HGEXWVWLOO
OLYH XQGHU D YLUWXDO VWDWH RI GRPLQDQFH DQG DZD\ IURP WKHLU SDVW WUDGLWLRQV 7KH
WKHRU\ DQG OLWHUDWXUH SLFWXUH WKH VWUXJJOH RI WKH VXERUGLQDWHG WR ILQG WKHLU ORVW
YRLFH XQLTXHQHVV DQG LGHQWLW\ 7KH SRVWFRORQLDO WKHRU\ DQG OLWHUDWXUH UHFRUG WKH
HIIRUWV RI WKH PDUJLQDO WR JULQG GRZQ WKH FRORQLDO LGHRORJ\ DQG DOVR WKH
HQGHDYRXU WR UHWULHYH UHFRYHU DQG UHYDOXH RQH¶V RZQ SUH7FRORQLDO WLPHV
3RVWFRORQLDOLVP UHFRXQWV WKH HIIRUWV RI WKH PDUJLQDOLVHG WR EULQJ DERXW D FKDQJH
QRWRQO\LQV\PEROLFVLJQLILFDQFHEXWDOVRLQWKHGRPLQDQWPHDQLQJWKURXJKWKH
PHDQVRIGHFRORQL]DWLRQ
$IWHU GHFRORQL]DWLRQ WKH FRORQL]HG ILUVW WU\ WR DVVLPLODWH DQG WKHQ
HYHQWXDOO\ DEURJDWH DQG DSSURSULDWH WKH (XURFHQWULF GLVFRXUVHV WKH GLVFRXUVHV
ZKLFK KDG JLYHQ WKHP WKH ZDQG RI VHOINQRZOHGJH DQG VHOIUHSUHVHQWDWLRQ
3RVWFRORQLDOLVPVHHNVDUHLQWHUSUHWDWLRQRIWKHFDQRQLFDOWH[WVRIWKHKHJHPRQLF
LPSHULDO SRZHU FHQWUH 7KH SRVWFRORQLDO ZULWHUV LQLWLDOO\ FRPSO\ ZLWK WKH XVH RI
PHWURSROLWDQOLWHUDU\JHQUHVRUWKHRULHVDQGODWHUDFFOLPDWL]HWKHPWRLQGLJHQRXV
SDUWLFXODULWLHVDQGDWWDLQWKHUHVRXUFHRIVHOIDVVHUWLRQ7KHDIILUPDWLRQRIWKHVHOI
UHVXOWV LQWR WKH GHFODUDWLRQ RI WKH GLIIHUHQFH RIWKH QDWLYHV IURP WKH FHQWUH 7KH
GRPLQDWLQJ FRPPXQLW\ PD\ DVVHUW WKDW WKH OLWHUDWXUH SURGXFHG E\ WKH FRORQL]HUV
GXULQJ WKH FRORQLDO HUD WDONV DERXW WKH HYLOV RI WKH LPSHULDOLVP %XW WKH\ IRUJHW
WKDW FRORQL]HUV¶ OLWHUDWXUH GHVFULEHV WKH FRORQLDO DFWXDOLWLHV IURP WKHLU RZQ
SHUVSHFWLYH7KHLQGLJHQRXVFXOWXUHODQGDQGLWVSHRSOHDUHUHSUHVHQWHGDVDIRLO
WR WKH FXOWXUH DQG WUDGLWLRQV RI WKH ZKLWHV DQG FRQVHTXHQWO\ WKHLU VXSHULRULW\ LV
HPSKDVL]HGGLUHFWO\DVZHOODVLQGLUHFWO\
$ GLVFXVVLRQ DERXW SRVWFRORQLDOLVP DV D UHVFXH IURP FRORQLDOLVP SURPSWV
WKH UHDGHUV WR DVN ZDV HYHU\WKLQJ DERXW WKH SUHFRORQLDO VWDWHV LGHDOLVWLF" :HUH
WKHUHQRIODZVRURSSUHVVLRQVEHIRUHEHLQJFRORQL]HG"'RHVGHFRORQL]DWLRQPHDQ
DUHXQLRQWRWKHSUHFRORQLDOVHWXSRQFHDJDLQ"$UHUDFHFODVVDQGJHQGHUPHUHO\
WKHSURGXFWVRIFRORQL]DWLRQ",QDQVZHUWRWKHVHTXHULHVLWPD\EHVDLGHVSHFLDOO\
LQWKH,QGLDQFRQWH[WWKDWIODZVOLNHGLVFULPLQDWLRQRQWKHEDVLVRIFODVVFDVWHDQG
JHQGHUZHUHDOUHDG\DSDUWRIWKHLQGLJHQRXVVWUXFWXUHVEHIRUHFRORQL]DWLRQ7KHUH
LV QR GRXEW WKDW WKH VWUXJJOH IRU UHIRUP EHJDQ ZLWK WKH FRQVROLGDWLRQ RI WKH
FRORQLDO SRZHU EXW FRORQL]DWLRQ IRU WKH MXVWLILFDWLRQ RI LWV H[LVWHQFH VHHPV WR
KDYH PXGGLHG RU FRQIRXQGHG WKH GLVFULPLQDWLRQV IXUWKHU 7R DGG WR WKH HYLOV
DOUHDG\ H[LVWLQJ FRORQL]DWLRQ EURXJKW UDFLDO GLIIHUHQWLDWLRQ SK\VLFDO DQG PHQWDO
H[SORLWDWLRQ FDSLWDOLVP PRQRSROLVDWLRQ DQG FRUUXSWLRQ HWF 7KH FRORQLDOV
EURXJKW WKHLU RZQ SUHMXGLFHV DERXW WKH VDPH $QRWKHU SUREOHP DUHD LV WKDW WKH
SRVWFRORQLDOWKHRU\VHHPVWRWUHDWWKHH[SHULHQFHVDQGSUREOHPVRI$IULFD6RXWK
$VLDDQG6RXWK(DVW$VLDHWFXQLIRUPO\,WPD\EHPHQWLRQHGKHUHWKDWQRWRQO\
DUHWKHWKUHHGLIIHUHQWIURPRQHDQRWKHUEXWWKHGLIIHUHQFHVDOVRH[LVWLQGLIIHUHQW
SDUWVRIWKHVDPHUHJLRQ,WPD\WKHUHIRUHEHVXJJHVWHGWKDWWKHH[SHULHQFHVDQG
SUREOHPV RI GLIIHUHQW FRORQL]HG DUHDV EH WUHDWHG ZLWK D GLIIHUHQW DQG VXLWDEOH
SHUVSHFWLYH,WFDQQRWEHLJQRUHGWKDWSRVWFRORQLDOVWXGLHVDQGLQGLJHQRXVFUHDWLYH
H[SUHVVLRQV UHO\ RQ ZHVWHUQ K\SRWKHVLV ZHVWHUQ WKHRU\ ZHVWHUQ FXOWXUH DQG
ZHVWHUQUKHWRULF%XWLWDOVRVWDQGVWUXHWKDWSRVWFRORQLDOLVPLVDPHDQVWRHYDOXDWH
WKHUHVWUXFWXULQJUHEXIILQJDQGRYHUKDXOLQJRIWKHVRFLDOSROLWLFDOHFRQRPLFDQG
WKH SV\FKRORJLFDO VWUXFWXUHV RI WKH RQFH FRORQL]HG QDWLRQV ,Q WKH SUHVHQW GD\
SRVWFRORQLDO OLWHUDWXUH DQG WKH GHSLFWLRQ RI KHDUWUHQGLQJ H[SHULHQFHV RI WKH
FRORQL]HG KDV JDLQHG HTXDO VSDFH DV WKH P\WKV RI SRZHU ZKLWH PDQ¶V EXUGHQ
FXOWXUDO GLVWLQFWLRQ DQG UDFH FODVV DQG JHQGHU FODVVLILFDWLRQ 7KHUHIRUH WR
XQGHUVWDQGWKHSRVWFRORQLDOWKHRU\FRPSUHKHQVLYHO\LWEHFRPHVREOLJDWRU\WRUHDG
LWV WKUHH GLPHQVLRQV WKDW LV UDFH FODVV DQG JHQGHU WKH QH[W IRFXV RI WKH
,QWURGXFWLRQRIWKHGLVVHUWDWLRQ
7KH FRQFHSWV RI UDFH FODVV DQG JHQGHU DUH FORVHO\ LQWHUOLQNHG ZLWK RQH
DQRWKHU $Q DWWHPSW WR UHVLWXDWH WKH SRVWFRORQLDO WKHRU\ LQ UHODWLRQ WR UDFH FODVV
DQGJHQGHULVWKXVHVVHQWLDO$FFRUGLQJWR%DQWRQWKHLGHDRIUDFHLVQRWYHU\ROG
DQGKDVHPHUJHGLQLWVSUHVHQWFRORXUVLQUHFHQWKLVWRU\
'LVFULPLQDWLRQDJDLQVWVWUDQJHUVDQGSDUWLFXODUO\DJDLQVWGDUNVNLQQHG
SHRSOH LV SUREDEO\ RI DQWLTXLW\ %XW µUDFH¶ DV LW LV NQRZQ WRGD\ LV D
UHODWLYHO\ QHZ LGHD 2QO\ LQ WKH ODVW WZR KXQGUHG \HDUV KDV DQ
LGHRORJ\RIUDFHFODLPLQJVFLHQWLILFYDOLGLW\EHHQDGGHGWRWKHUKHWRULF
RIQDWLRQDOHFRQRPLFDQGVRFLDOFRQIOLFW%DQWRQ
,Q WKH SRVWFRORQLDO HUD WKH ZRUG UDFH KDV DFTXLUHG FRQWURYHUVLDO LPSOLFDWLRQV
+XPDQ EHLQJV DUH FODVVLILHG LQWR GLIIHUHQW FDWHJRULHV RQ WKH EDVLV RI UDFH 5DFH
KDV EHFRPH DQ LPSRUWDQW IDFWLRQ RI WKH VRFLDO DQG FXOWXUDO ZRUOGV 7KH
FDWHJRUL]DWLRQ RI KXPDQLW\ RQ WKH EDVLV RI UDFH LV GHQRWHG PRUH E\ WKH RXWHU
SK\VLFDO FKDUDFWHULVWLFV RI WKH JURXSV DQG OHVV E\ WKH DWWLWXGLQDO RU SV\FKLFDO
0RUHRYHUZKHQHYHUWKHLQQHUWUDLWVRIDKXPDQEHLQJRUDFRPPXQLW\DUHUHIHUUHG
WRWKH\DUHEDVHGRQFRUSRUHDOFDWDORJXLQJ7KHH[WHUQDOFKDUDFWHULVWLFVOLNHWKH
FRORXU RI WKH VNLQ DQG WKH GLIIHUHQFHV RI WKH SK\VLFDO RU ERGLO\ IHDWXUHV FDQQRW
H[SUHVVWKHLQWHUQDOHVVHQFHRIWKHKXPDQEHLQJV
7KH VWXG\ RI UDFLDO GLIIHUHQWLDWLRQ KDV EHFRPH DQ LPSRUWDQW FRPSRQHQW RI
WKHSRVWFRORQLDOWKHRU\EHFDXVHWKHZKLWHLPSHULDODXWKRULWLHVGLVFULPLQDWHDJDLQVW
SHRSOH ZLWK RWKHU FRORXUV RI WKH VNLQ 7KH P\WKV RI WKH UXOLQJ DXWKRULWLHV DUH
SHGHVWDOHGXSRQUDFLDOVXSHULRULW\,WLVGLVVHPLQDWHGWKDWWKHGXW\RIZKLWHUDFHLV
WRFLYLOL]HWKHEODFNSHRSOHZKRDUHOLNHDSHV7KXVWKHP\WKWKDWWKHZKLWHUDFH
LV VXSHULRU WR WKH RWKHU UDFHV DOVR EHFRPHV D WRRO IRU WKH OHJLWLPL]DWLRQ RI WKH
ZKLWH PDQ¶V KHJHPRQLF UXOH LQ WKH QRQZKLWH ODQGV 5DFH LV XVHG DV ³ELRORJLFDO
DQGHVVHQWLDOLVWPHVK´WRWUDSWKHLQQRFHQWQDWLYHV$VKFURIW7KHUDFHRIWKH
QRQZKLWHVWKHLUDQFHVWRUVWKHLUKLVWRU\DQGWKHLUFXOWXUHLVVKRZQDVLQIHULRUWR
WKH DQFHVWRUV DQG WKH FXVWRPV RI WKH ZKLWH UDFH ,Q WKH HLJKWHHQWK FHQWXU\ WR
HPSOR\ D EODFN PDQ DV D VHUYDQW ZDV FRQVLGHUHG WR EH D VWDWXV V\PERO 7KHVH
VODYHV ZHUH JHQHUDOO\ WUHDWHG IDLUO\ EXW WKH\ ZHUH DOZD\V VHHQ DV LQIHULRU 7KH
UXOLQJUDFHMXVWLILHGVODYHWUDGHE\SURSDJDWLQJWKDWWKHVHUYLOLW\RIWKHQRQZKLWHV
JDYH WKHVH QDWLYHV D FKDQFH WR VHH DQG DGRSW WKH ZD\V RI VXSHULRU ZKLWH
FLYLOL]DWLRQ DQG VRSKLVWLFDWHG FXOWXUH ,W FODLPHG WR VDYH WKH PDUJLQDO IURP
EDUEDULW\ E\ HPSOR\LQJ WKHP %XW VODYH WUDGLQJ DQG VODYH KROGLQJ VLJQLI\ UDFLVW
VHQWLPHQWV
7KHZKLWHUDFHKDVLPSRVHGVXSHULRULW\RYHUWKHUHVW7KHFODVVLILFDWLRQRI
KXPDQ EHLQJV RQ WKH EDVLV RI UDFH OHDGV WR WKH EXLOGLQJ XS RI VWHUHRW\SHV WR EH
XVHGE\RQHJURXSRISHRSOHIRUWKHRWKHU7KHSURIHVVHGVXSHULRUUDFHWRMXVWLI\
LWVSUHHPLQHQFHSLJHRQKROHVJURXSVRISHRSOHRWKHUWKDQZKLWH7KHDSSOLFDWLRQ
RIWURSHVGHQRWHVLQIHULRULW\RIWKHQDWLYHVZKLFKDFFRUGLQJWRWKHP\WKRIZKLWH
PDQ¶V EXUGHQ QHFHVVLWDWHV JXLGDQFH E\ WKH ZKLWHV :RUGV OLNH WULEDO EDFNZDUG
LPPDWXUH ZHDN DQG XQGHUGHYHORSHG KDYH EHHQ FUHDWHG RQ WKH SRGLXP RI UDFLDO
KLHUDUFK\EHFDXVHUDFLDOGLVFULPLQDWLRQLVUHODWHGWRH[SORLWDWLRQDEXVHSUHMXGLFH
LQWROHUDQFHDQGLQMXVWLFH,QWKHILHOGRIFRORQLDOOLWHUDWXUHWKHZULWHUVUHIHUWRWKH
QDWLYHV RU WKH SULPLWLYHV DV OD]\ FKLOGLVK VDYDJH ZLOG DQG FUXHO +HQFH WKHVH
WUDLWVVHHPWREHDVVRFLDWHGZLWKWKHFRORQL]HGUDFHVDVLIE\QDWXUH,QWKHVRFLDO
HYROXWLRQDQGWKHUDFLDOFKDLQRIFRPPDQGWKHZKLWHDUHSODFHGDWWKHWRSDQGWKH
RWKHUUDFHVRISHRSOHDUHJLYHQWKHORZHUSRGLXPV:LWKLQWKHFRQVWUXFWLRQRIWKH
HWKQLFDO RUJDQL]DWLRQ RU VRFLHWDO SURJUHVVLRQ RU WKH FKDLQ RI EHLQJ WKH SULPLWLYH
SHRSOHDUHXQGHUVWRRGWREHIULJKWHQHGRIWKHVSLULWVDQGVXSHUQDWXUDOKDSSHQLQJV
7KH\ZRUVKLSDQLPDOVDQGWUHHVDQGWU\WRSDFLI\WKHIRUFHVRIQDWXUHE\ULWXDOV
VDFULILFHVDQGFHUHPRQLHV7KHLQQRFHQFHRIWKHDQFLHQWWULEHVLVH[SORLWHGERWKE\
WKHZKLWHFRORQL]HUVDQGPLVVLRQDULHV
7KHMXVWLILFDWLRQRIWKHFRQWURORIWKHZKLWHUDFHRYHUWKHRWKHUUDFHVRQWKH
SROLWLFDOOHYHOLVWKURXJKWKHSURSDJDWLRQRIWKHIDFWWKDWWKHSULPLWLYHFODQVKDYH
DOZD\VEHHQLQDVWDWHRIODZOHVVQHVVGLVRUGHUFKDRVW\UDQQ\DQGGHVSRWLVP7KH
ZKLWH UDFH FDPH LQ FRQWDFW ZLWK WKH RWKHU UDFHV ZLWK WKH H[SDQVLRQ RI RYHUVHDV
WUDGHDQGWKDWHYHQWXDOO\OHDGWRLPSHULDOLVP7KHZKLWHVSURSDJDWHGKXPDQLWDULDQ
SROLFLHV 7KH\ SURFODLPHG WKHPVHOYHV DV VXSUHPH DQG IRUWXQDWH ZKRVH GLYLQH
GXW\ZDVWRJLYHDOLIWWRWKHEDFNZDUGFODVVHVWKHVDYDJHDQGSDJDQWULEHVIURP
WKHLUEDVHQHVVDQGXQFLYLOL]HGDQGXQFXOWXUHGZD\V7KHEDQGRIWKHRVWHQVLEOH
VXSHULRU UDFH ZKLFK ZHQW WR WKH ODQGV RI WKH RWKHU UDFHV IRXQG WKDW PRVW RI WKH
WHUUDLQRIWKHVXSSRVHGQRQZKLWHVZDVO\LQJIDOORZ7KH\ZHUHIUHHWRRFFXS\WKH
ODQG DQG XVH LW WKH ZD\ WKH\ ZDQWHG WR %\ WKH WLPH WKH QDWLYHV FRXOG EHFRPH
DZDUHRIWKH IXQFWLRQLQJRIWKHZKLWHVWKHUXOLQJFRPPXQLW\KDGHVWDEOLVKHGLWV
FRQWURO RYHU WKHLU ODQG DQG FXOWXUH HLWKHU E\ RFFXSDWLRQ RU FRQTXHVW $IWHU WKH
QDWLYHV KDG JLYHQ DZD\ WKHLU PRVW YDOXDEOH SURSHUW\ WR WKH ZKLWHV IRU SHWW\
FRPPRGLWLHVOLNHWRROVZHDSRQVDQGDIHZOHQJWKVRIFORWKWKHUDFHUHODWLRQVKDG
EHFDPHIULFWLRQDOYLROHQWDQGXQKHDOWK\
7KHUH ZHUH VRPH FRORQLVWV ZKR UDLVHG WKHLU YRLFH LQ IDYRXU RI WKH
GRPLQDWHG HYHQ EHIRUH WKH RSSUHVVHG WKHPVHOYHV FRXOG TXHVWLRQ ³KRZ WKH ORQJ
KLVWRU\RIPLVWUHDWPHQWRIRQHVRFLDOJURXSE\DQRWKHUZHLJKVXSRQWKHSUHVHQW´
5\DQ 7KH\ HPSKDVLVHG WKDW WKH RVWHQVLEOH UDFLDOO\ VXSHULRU UXOLQJ
FRPPXQLW\ ZDV FRPPLWWLQJ DWURFLWLHV RQ WKH VXSSRVHG LQIHULRU SHRSOH RQ WKH
EDVLV RI WKH FUDIWHG LQIHULRULW\ DQG ZHDNQHVVHV 7KHLU FULWLFLVP H[SORUHV FXOWXUHV
WKDW ZHUH PDUJLQDOL]HG E\ WKH (XURFHQWULF HWKQLFLW\ /DWHU WKH SHRSOH RI WKH
FRORXUHGUDFHVDOVRFRQWULEXWHGWROLWHUDWXUHDQGVWUHVVHGXSRQWKHKLVWRU\RIWKHLU
LOOWUHDWPHQW H[SORLWDWLRQ RSSUHVVLRQ GRPLQDWLRQ DQG VXEMXJDWLRQ %XW LW KDV WR
EHFRQFHGHGWKDWUDFHLVDQXQGHQLDEOHGHWHUPLQDQWRIWKHFXOWXUDOGLIIHUHQFHVDQG
WKDWUDFLDOSUHMXGLFHFDQQRW\HWEHIXOO\HUDVHGIURPWKHIDFHRIWKHZRUOG
7KH VDPH WKHPH RI KROORZQHVV LQ WKH SURSDJDWHG VXSHULRULW\ RI WKH ZKLWH
UDFH KDV EHHQ H[SRVHG E\ ZULWHUV OLNH &RQUDG DQG *ROGLQJ &RQUDG UHFRUGV WKH
LPSDFW RI WKH ZKLWH FRORQLDOLVP RQ WKH FRORQL]HG +H GRHV QRW DXWKHQWLFDWH WKH
KHJHPRQLFUXOHRIWKHZKLWHUDFH&RQUDG³OD\VEDUHWKHLQKHUHQWFRQWUDGLFWLRQVLQ
WKHFRORQLDOV\VWHPDQGFXOWXUH´7HZDUL+HGRHVQRWMXVWLI\WKHPHWKRGVRI
H[SDQVLRQLVPEDVHGRQWKHUDFLDOGLIIHUHQWLDWLRQVDQGFXOWXUDOVXSHULRULW\&RQUDG
GRHV QRW VHHP WR DOLJQ KLPVHOI ZLWK LPSHULDOLVP FRQVFLRXVO\ &RQUDG¶V ZRUOG
YLHZFRRUGLQDWHVZLWKWKHQDWLYHVRI$IULFDDQG0DOD\DQ$UFKLSHODJR+HVHHWKH
UHDOLW\EHKLQGWKHVPRNHVFUHHQRIWKHGLVFRXUVH RISURJUHVV DQGP\WKVRIZKLWH
PDQ¶V EXUGHQ DQG SUHVHQWV WKH WUXH SLFWXUH RI WKH RSSUHVVLRQ XQOHDVKHG E\
LPSHULDOLVWVRQWKHEDVLVRIWKHLUDVVHUWHGUDFLDOSUHHPLQHQFH
:LOOLDP*ROGLQJWRROLNH&RQUDGLQZRUNVVXFKDV/RUGRIWKH)OLHV7KH
,QKHULWRUVDQG3LQFKHU0DUWLQVKRZVWKDWWKHVXSHULRUZKLWHPDQLVHYLODWKHDUW
² DOZD\V HYHQWXDOO\ UHYHUWLQJ EDFN WR D VDYDJH DQG ZLOG GLVSRVLWLRQ ZKHQ WKH
WKLQYHQHHURIFLYLOL]DWLRQLVORVWXQGHUH[WUHPHFLUFXPVWDQFHV+HWDONVDERXWWKH
F\FOHRIRVWHQVLEOHVXSHULRUUDFH¶VULVHWRSRZHUDQGLWVSUHGHVWLQHGGHVFHQWIURP
UHILQHPHQWDQGHOHJDQFHWRDQXQFXOWXUHGFRUUXSWVHOI7KHVWUDQGHGER\VLQ/RUG
RI WKH )OLHVHYHQWXDOO\ VKDNH RII WKH PDVN RI WKHLU ZHOOFRQGLWLRQHG FLYLOL]HG
EHKDYLRXU DQG VXFFXPE WR WKH ZLOG SULPRUGLDO VWDWH 'HVSLWH WKH VWURQJ VHQVH RI
%ULWLVKJUDFLRXVQHVVZKLFKLVLQVWLOOHGLQWKHZKLWHUDFHWKURXJKRXWWKHLUOLYHVWKH
EDQG RI VFKRRO ER\V UHWUHDW WR WKH RULJLQDO VDYDJH VLGH LQKHUHQW LQ DOO KXPDQV
7KURXJKRXW WKH QRYHO WKHUH LV D YLROHQW VWUXJJOH IRU FRPPDQG DQG GRPLQDWLRQ
EHWZHHQ WZR JURXSV RI WKH VFKRRO ER\V 7KHLU HIIRUW WR JDLQ SRZHU LOOXVWUDWHV
PDQ¶V DSSUHKHQVLRQ RI ORVLQJ FRQWURO RU DXWKRULW\ 7KH GUHDG RI PRQVWHUV LQ WKH
ER\V LV QDWXUDO EXW WKH IHDU RI ORVLQJ FRQWURO LV LQKHULWHG IURP WKH UDFH DQG WKH
FLYLOL]DWLRQ WKH\ FRPH IURP *ROGLQJ WULHV WR SURYH WKDW WKH RUGHU LPSRVHG IURP
ZLWKRXW LV WUDQVLWRU\ EXW WKH ZKLWH PDQ¶V OXGLFURXVQHVV DQG XUJH IRU GHVWUXFWLRQ
DUH ODVWLQJ +H DWWHPSWV WR H[SRVH ZKDW WKH ZKLWH PDQ LV OLNH ZKHQ WKH
VPRNHVFUHHQRIVRSKLVWLFDWHGDQGFLYLOL]HGEHKDYLRXUIDOOVDZD\
7KH ,QKHULWRUV *ROGLQJ¶V VHFRQG ERRN LV DQRWKHU H[DPSOH RI KLV
LQFRUSRUDWLRQ RI WKH GDUNQHVV RI PDQ¶V KHDUW LQWR KLV QRYHOV ,W LURQLFDOO\
GHVFULEHV WKH DGYDQFHPHQW RI WKH VRFDOOHG PRUH DGYDQFHG +RPR VDSLHQV /LNH
WKH VFKRRO ER\V LQ/RUG RI WKH )OLHV WKH QHZ SHRSOH LQ 7KH ,QKHULWRUVDUH
DJJUHVVLYH DQG HQFURDFK XSRQ WKH LQQRFHQFH RI WKH QDLYH 1HDQGHUWKDOV ,Q7KH
,QKHULWRUVWKH+RPRVDSLHQVVHHWKH1HDQGHUWKDOVDVGHYLOVDQGNLOOWKHPRXWRI
WKHLU IHDU RI PRQVWHUV *ROGLQJ¶V ZRUN LPSOLHV WKDW WKH ORQJ FRXUVH RI HYROXWLRQ
KDVEURXJKWQRIXQGDPHQWDOFKDQJHLQHOHPHQWDU\QDWXUHDQGEDVLFLQVWLQFWVRIWKH
VXSHULRU UDFH 7KH SDVW RI WKH ILUVW RI WKHLU NLQG LV VWLOO DQ HVVHQWLDO SDUW RI WKH
DGYDQFHGUDFH7KH,QKHULWRUVSUHVHQWVDYLYLGLPDJHRIWKHFLYLOL]HGPDQRIWKH
SURIHVVHG VXSHULRU UDFH DV GLUHFWLRQOHVV KROORZ VHOILVK SDWKHWLF YLFLRXV DQG
VDYDJHDWWKHYHU\FRUHRIKLVH[LVWHQFH3LQFKHU0DUWLQUHIHUVWRWKHYXOQHUDELOLW\
RI WKH LPPDWXUH SHRSOH DQG D SHUVXDVLYH GHQXQFLDWLRQ RI WKH HVVHQWLDO
WHPSHUDPHQW RI PDQ 7KH SURWDJRQLVW EHOLHYHV LQ WKH LGHRORJ\ WKDW PDQ LV WKH
PRVWHYROYHGVSHFLHVDQGEHLQJDWWKHWRSRIWKHIRRGFKDLQKHLVQRWDQVZHUDEOH
WRDQ\RQH&KULVWRSKHU0DUWLQLVVHFXUHLQKLVSRVLWLRQDVDOLHXWHQDQWLQWKH1DY\
EXW KH UHIXVHV WR DFNQRZOHGJH WKDW WKHUH H[LVWV D GRPLQHHULQJ SRZHU ZKLFK LV
JUHDWHUWKDQKLPVHOI7KHUHIRUH*ROGLQJ¶VZRUNVSURPSWWKHUHDGHUVWRWKLQNWKDW
WKH QDWXUDO HYLO LQKHUHQW LQ WKH KXPDQ EHLQJV RYHUZKHOPV WKHLU FLYLOL]HG DQG
VRSKLVWLFDWHGPDQQHULVPWKHLUUDFLDOVXSHULRULW\DQGWKHWULXPSKRIFLYLOL]DWLRQ
7KH FRQFHSW RI UDFH UDFLDO GLVFULPLQDWLRQV DQG XVH RI UDFLDO VXSHULRULW\ WR
VSUHDG WKH KHJHPRQLF UXOH RI WKH LPSHULDOLVWV LV DQ LPSRUWDQW DVSHFW RI
SRVWFRORQLDOWKHRU\6LPLODUO\FODVVGLVWLQFWLRQVDUHFORVHO\FRQQHFWHGZLWKUDFLDO
SUHMXGLFHV,QDOD\PDQ¶VODQJXDJHFODVVLVDV\PERORIDSHUVRQ¶VVRFLDOVWDQGLQJ
(DJOHWRQ GHILQHV FODVV DV ³D FXOWXUDO V\VWHP RU VHW RI VWDWXV GLVWLQFWLRQV RIWHQ
H[SODLQHGLQWHUPVRIWKHJRRGVRQHFRQVXPHVWKDWPDUNVRQH¶VVRFLDOVWDQGLQJRU
LW PD\ UHIHU WR WKH GLVWLQFWLRQ RI UHVRXUFHV WKDW IXQFWLRQ DV WKH PDNHUV RI
µSULYLOHJH¶´(DJOHWRQ:LWKWKHGHYHORSPHQWRIFRQFHSWVOLNHUDFHVH[XDOLW\
JHQGHU FXOWXUDO GLVWLQFWLYHQHVV WKH DQDO\VLV RI FODVV KDV WDNHQ D EDFNVHDW LQ WKH
SRVWFRORQLDO ZRUOG %XW LW VKRXOG QRW EH IRUJRWWHQ WKDW WKH FKDQJHV LQ WKH
UHSUHVHQWDWLRQ RI WKH ³µPXOWLFXOWXUDO¶ QDWLRQDO LGHQWLWLHV VWLOO GHSHQG RQ
SHUVLVWHQW FODVV UHODWLRQVKLSV EDVLF WR FDSLWDOLVW SURGXFWLRQ´ (DJOHWRQ 7KH
FODVV VWUXFWXUH EDVHG RQ WKH DFFXPXODWLRQ RI FDSLWDO UHPDLQV XQFKDQJHG WKRXJK
³SDWWHUQV RI HPSOR\PHQW DFFXPXODWLRQ DQG FRQVXPSWLRQ PD\ EH FKDQJLQJ
EHFRPLQJ GHFHQWUDOL]HG DQG JOREDOO\ GLVWULEXWHG GLIIHUHQWO\ ´ (DJOHWRQ 7KHVRFLDOUHODWLRQVDUHWKXVGHWHUPLQHGRQWKHEDVLVRISRZHUDQGSULYLOHJHVWKDW
DUH H[SORLWDWLYH LQ QDWXUH ,Q WKH FDSLWDOLVW VRFLHWLHV RQH PD\ ILQG IXUWKHU FODVV
GLVWLQFWLRQVEHWZHHQWKHSULPDU\ZRUNHUVDWWKHRWKHUHQGRIWKHSD\VFDOH
$FFRUGLQJ WR WKH (PSLULFLVWV VRFLHWLHV DUH ³FRQVWLWXWHG E\ DQ HFRQRPLF
RUGHUDOHJDORUGHUDQGDFXOWXUDORUGHU²DOORIZKLFKLQWHUDFWDQGQRQHRIZKLFK
LV GHWHUPLQLQJ +HUH FODVV UHIHUV WR DQ\ JURXS RI SHRSOH IRXQG LQ D PDUNHW
VLWXDWLRQ DQG DQ LQGLYLGXDO¶V FODVV SRVLWLRQ LV XOWLPDWHO\ GHFLGHG E\ WKH NLQG RI
RSSRUWXQLW\ RIIHUHG E\ WKH PDUNHW´ (DJOHWRQ $FFRUGLQJ WR WKH (PSLULFLVW
DSSURDFK LQGLYLGXDOV DUH GLYLGHG LQWR GLIIHUHQW JURXSV RQ WKH EDVLV RI WKHLU
SRVVHVVLRQV DQG DVVHWV 7KH FODVV GLVWLQFWLRQV DUH GHWHUPLQHG E\ PDUNHW
PRGLILFDWLRQV,QWKHFDSLWDOLVWVRFLHWLHVWKHFODVVHVULVHZLWKWKHZLGHQLQJRIWKH
JDS EHWZHHQ WKRVH ZKR SRVVHVV WKH PHDQV RI SURGXFWLRQ DQG D ODUJH SDUW RI
ZRUOG¶VZHDOWKDQGWKRVHZKRRZQYHU\OLWWOHWRVXUYLYH.DUO0DU[LVWKHPRVW
YRLFH KHDUG LQ WKH WKHRUHWLFDO FRUULGRUV RI FODVV 7KH FRQFHSW RI FODVV LV FORVHO\
FRQQHFWHG ZLWK WKH UHODWLRQV RI SRZHU H[SORLWDWLRQ DQG ZHDOWK LQ WKH FDSLWDOLVW
VRFLHW\,QWKHFRQVXPHULVWVRFLHWLHVDODUJHERG\RIZRUNHUVODERXULQFHVVDQWO\
ZKLOH D VPDOO JURXS RI SHRSOH UHDS WKH IUXLWV RI WKHLU KDUG ZRUN 5\DQ TXRWHV
0DU[¶VYLHZWKDW³DOOKLVWRU\LVFKDUDFWHUL]HGE\VXFKXQHTXDOFODVVDUUDQJHPHQWV
DQG RQH UHVXOW LV WKDW DOO KLVWRU\ LV FKDUDFWHUL]HG E\ FODVV VWUXJJOH WKH FRQIOLFW
EHWZHHQWKRVHZKRHDUQDQGWKRVHZKRODERXU´5\DQ&ODVVGLVWLQFWLRQVDUH
GHWHUPLQHGE\WKHHFRQRPLFGHYHORSPHQWLQFDSLWDOLVWVRFLHWLHV7KHDJULFXOWXUDO
VXUSOXV JLYHV ULVH WR WKH PHUFKDQW FODVV WKDW FRPHV LQ FRQIOLFW ZLWK WKH IHXGDO
FODVVHV EHFDXVH RI WKH GLIIHUHQFHV LQ WKHLU LGHDOV DQG SHUVSHFWLYH WRZDUGV ZRUN
$QGWKXVEHJLQVWKHFODVVVWUXJJOHEHWZHHQWKHIHXGDOFODVVHVDQGWKHFRPPHUFLDO
FODVVHV
0DU[¶V DQDO\VLV GRHV QRW LQFOXGH ZRPHQ¶V RSSUHVVLRQ XQGHU WKH \RNH RI
FDSLWDOLVP:RPHQFODVVZRUNVHTXDOO\ZLWKKHUPDOHFRPSDWULRWVLQWKHIDFWRULHV
DQG RWKHU XQLWV EXW WKH\ DUH SDLG OHVV WKDQ WKHLU PDOH FRPSDQLRQV :KHQ WKH
FRQFHSW RI FODVV LV XVHG IRU WKH GLVFXVVLRQ RI WKH ZRPDQ VHFWRU LW KDV EHHQ
REVHUYHG WKDW WKH KLJK FODVV ZRPHQ DQG WKH ZKLWH ZRPHQ WU\ WR VXEMXJDWH WKH
ORZHU FODVV ZRPHQ DV ZHOO DV WKH EODFN ZRPHQ VRPHWLPHV FRQVFLRXVO\ DQG
VRPHWLPHV XQFRQVFLRXVO\ ,W KDSSHQV ZKHQ WKH ZRPHQ EHORQJLQJ WR WKH KLJKHU
FODVVHVHQMR\WKHSULYLOHJHVDQGSURWHFWLRQRIWKHFODVVRIPHQWKH\EHORQJWRE\
VXERUGLQDWLQJ WKHLU VH[XDO HFRQRPLF SROLWLFDO DQG LQWHOOHFWXDO SRZHUV WR WKH
SDWULDUFK\7KHSRRUZRPHQGRQRWKDYHDQDFFHVVWRWKHUXOLQJDXWKRULWLHV7KH
ULJKWV DQG SULYLOHJHV WKDW WKH VXEDOWHUQ ZRPHQ HQMR\ EHFRPH DYDLODEOH WR WKHP
RQO\E\WKHHIIRUWVRIWKHKLJKFODVVZKLWHZRPHQ,QLWLDOO\WKHFRORQL]HGDQGWKH
SRRU DQG WKH QRQZKLWH ZRPHQ FRXOG QRW UDLVH WKHLUYRLFH DJDLQVW WKH UXOLQJ WKH
SDWULDUFKLHV7KHZKLWHDQGKLJKFODVVZRPHQEHJDQWRILJKWIRUWKHULJKWVRIWKH
ZRPHQ 7KHLU VWUXJJOH DQG GHPDQGV ZHUH EDVHG RQ WKH H[SHULHQFHV RI RQO\ WKH
ZKLWH+HQFHWKH%ODFN)HPLQLVWVURVHWRGHQRXQFHWKHDVVXPSWLRQVRIWKHKLJK
FODVV ZKLWH IHPLQLVWV 7KH\ GHPDQGHG WKH QHJDWLRQ RI KRPRJHQHLW\ DPRQJVW
YDULRXVUDFHVFODVVHVFXOWXUHVDQGWUDGLWLRQVRIZRPHQ
6RFLHWLHVPD\EHGHWHUPLQHGRQWKHEDVLVRIUDFHVEXWFODVVGLVWLQFWLRQVDUH
DOVR FOHDUO\ YLVLEOH ,QHTXDOLW\ DQG XQMXVW UHODWLRQV ZKLFK SHUVLVW LQ DOO WKH
VRFLHWLHV LUUHVSHFWLYH RI WKH GRPLQDQW UDFH DUH OHJLWLPL]HG DQG MXVWLILHG E\ WKH
SURSDJDWLRQ RI WKH LGHRORJLHV RI WKH UXOLQJ FODVVHV 7R VXUYLYH DQG UHWDLQ WKHLU
DXWKRULW\ DQG DOVR MXVWLI\ WKH VRFLDO DQG HFRQRPLF DUUDQJHPHQWV WKH GRPLQDQW
JURXSVFRQYLQFHWKHPDVVHVWKDWWKHVRFLDODUUDQJHPHQWVRIFODVVDUHWUDGLWLRQDODV
ZHOO DV UDWLRQDO 7KH DXWKRULWDWLYH FODVVHV SURSRXQG WKDW WKH\ DUH QRW RQO\
KHUHGLWDULO\ VXSHULRU WKDQ WKH VXERUGLQDWH FODVVHV EXW WKH\ DOVR KDYH DFKLHYHG
WKHLUSRVLWLRQLQDFFRUGDQFHZLWKWKHWKHRU\RIWKHVXUYLYDORIWKHILWWHVW7KHOHJDO
V\VWHPRIPRVWRIWKHFRXQWULHVIDYRXUVWKHHFRQRPLFDOO\SRZHUIXOFODVVHV(YHQ
WKH OLWHUDWXUH RI PDQ\ VRFLHWLHV PRVWO\ FRQIRUPV WR WKH GRPLQDQW LGHRORJLHV DQG
WHQGHQFLHV RI WKH KLJKHU FODVVHV 7KH SURGXFWLRQ RI OLWHUDWXUH LV DOZD\V ³LQ FORVH
SUR[LPLW\WRWKHVLWHVRISROLWLFDODQGHFRQRPLFSRZHU´5\DQ7KXVOLWHUDWXUH
FDSWXUHV DQG SURSDJDWHV WKH ZLGHVSUHDG LGHDOV RI WKH GRPLQDWLQJ VRFLDO FLUFOH RI
WKHSUHYDOHQWWLPHV,WGHSLFWVWKHFODVVVWUXJJOHDQG³WKHFRQIOLFWVEHWZHHQVRFLDO
JURXSV WKDW FRQWHQG IRU HFRQRPLF DQG SROLWLFDO SRZHU RIWHQ E\ FXOWXUDO PHDQV´
5\DQ%XWWKHVDPHOLWHUDWXUHDOVRVWULYHVWR³PDVNWKHFRQWUDGLFWLRQVVXFKDV
WKRVHEHWZHHQHFRQRPLFJURXSV´5\DQ
1RVWXG\RISRVWFRORQLDOWKHRU\LVFRPSOHWHZLWKRXWWDNLQJLQWRDFFRXQWWKH
LVVXHRIJHQGHU:LWKWKHSDVVDJHRIWLPHWKHFRQVWUXFWLRQRIJHQGHURQWKHVRFLDO
DQGSROLWLFDOEDVHVJDLQHGPRUHDFFHSWDQFHWKDQWKHELRORJLFDOGHWHUPLQLVPRIWKH
WZR VH[HV *HQGHU KDV DOZD\V EHHQ ³LPEULFDWHG LQ WKH PDWUL[ RI SRZHU
H[SORLWDWLRQDQGUHVLVWDQFH´/HZLV0LOOV$VLVZHOOHVWDEOLVKHGE\QRZ
VH[PD\EHELRORJLFDOEXWJHQGHULVVRFLDODQGSROLWLFDO$FFRUGLQJWR/HZLVDQG
0LOOV WKH WHUP JHQGHU ZDV ³GHYHORSHG LQLWLDOO\ DV D WHUP WR GHVFULEH WKH VRFLDO
FRQVWUXFWHGQHVV RI µZRPHQ¶ DQG µPHQ¶ ,Q RSSRVLWLRQ WR WKH DSSDUHQWO\ VLPSOH
ELRORJLFDO GLIIHUHQFHV RI µVH[¶ JHQGHU VHHPHG WR EH D PRUH QXDQFHG DQG
KLVWRULFL]HG FRQFHSW´ /HZLV 0LOOV 7KH PDVFXOLQLW\ RI PHQ DQG WKH
IHPLQLQLW\RIZRPHQKDYHEHHQGHWHUPLQHGRQWKHEDVLVRIGHVLJQHGDSSURSULDWH
EHKDYLRXU 7KH DEQRUPDO IRUP RI WKH EHKDYLRXU LV VWLJPDWL]HG $QG WKHUHIRUH
³WKH QRUPDWLYH DOLJQPHQW RI PDOH DQG ZRPDQ ZLWK KHWHURVH[XDO PDVFXOLQLW\ RU
IHPLQLQLW\ LQ WKH GRPLQDQW JHQGHU FXOWXUH PXVW WKHUHIRUH EH VHHQ DV D SROLWLFDO
UDWKHUWKDQDELRORJLFDOIDFW´5\DQ
)HPLQLVPLVFORVHO\UHODWHGWRSRVWFRORQLDOWKHRU\$VKFURIWVD\V³IHPLQLVW
SHUVSHFWLYHVDUHRILQFUHDVLQJLPSRUWDQFHLQSRVWFRORQLDOFULWLFLVPDQGLQGHHGWKH
VWUDWHJLHV RI UHFHQW IHPLQLVW DQG UHFHQW SRVWFRORQLDO WKHRU\ RYHUODS DQG LQIRUP
HDFKRWKHU´$VKFURIW0RUHRYHUFULWLFVOLNH³-HDQ5K\V'RULV/HVVLQJ7RQL
0RUULVRQ3DXO0DUVKDOODQG0DUJUHW$WDZRRGKDYHDOOGUDZQDQDORJ\EHWZHHQ
WKHUHODWLRQVKLSVRIPHQDQGZRPHQDQGWKRVHRILPSHULDOSRZHUDQGWKHFRORQ\
ZKLOH FULWLFV OLNH *D\DWUL 6SLYDN E KDYH DUWLFXODWHG WKH UHODWLRQVKLS
EHWZHHQ IHPLQLVP SRVWVWUXFWXUDOLVP DQG GLVFRXUVH RI SRVWFRORQLW\´ $VKFURIW
)HPLQLVPDQGSRVWFRORQLDOLVPKDYHGHYHORSHGDWWKHVDPHSDFH7KHSXUSRVH
RI ERWK WKH GLVFRXUVHV LV WR ZUHVWOH IRU WKH ULJKWV RI WKH PDUJLQDOL]HG DQG KHOS
WKHPDFKLHYHWKHLUDSSURSULDWHSRVLWLRQYLVjYLVWKHGRPLQDQWJURXSV)HPLQLVP
KDVEHHQDFROOHFWLYHZRUNGHYHORSHGLQGLIIHUHQWGLUHFWLRQVE\ZRPHQ,WREMHFWV
WR ZRPHQ EHLQJ FRQVLJQHG WR VHFRQGDU\ VLWHV )HPLQLVP SURPRWHV ZRPHQ¶V
HIIRUWVWRFRPEDWHVVHQWLDOLVPDQGVH[XDOWURSHV
)HPLQLVPLVRQHRIWKHIHZLQGLVSHQVDEOHLQVXUUHFWLRQVRIWKHFRQWHPSRUDU\
HSRFK(DUOLHUWKHERRNVVSHHFKHVDQGILOPVZHUHWROGIURPWKHSRLQWRIYLHZRI
WKH PDOH 7KH REMHFWLILFDWLRQ RI ZRPHQ SUHVHQWHG WKHP DV OHVV LQWHOOLJHQW LQ DOO
ILHOGVVXFKDVFXOWXUHVRFLDOUHODWLRQVODZPHGLFLQHDQGDUWHWF7KHDJHQGDKDV
DOZD\VEHHQWRPDNHKHUDQREMHFWRISRVVHVVLRQ³QRPDQZRXOGFRQVHQWWREHD
ZRPDQEXWHYHU\PDQZDQWVZRPHQWRH[LVW´%HDXYRLU7KHUHYHUVDOZDV
QDWXUDO DQG VRPH ZRPHQ URVH WR FRXQWHU WKH DWWDFN RI WKH GRPLQDWLQJ DQG
DXWKRULWDWLYHSDWULDUFK\DQGFKDQJHWKHSRVLWLRQRIWKHVRFDOOHGVHFRQGVH[6R
³)HPLQLVP LQ D µSRVWFRORQLDO¶ IUDPH EHJLQV ZLWK WKH VLWXDWLRQ RI WKH RUGLQDU\
ZRPHQ LQ D SDUWLFXODU SODFH ZKLOH DOVR WKLQNLQJ RI KHU VLWXDWLRQ LQ UHODWLRQ WR
EURDGHULVVXHVWR JLYHKHUWKHPRUHSRZHUIXOEDVLVRIFROOHFWLYLW\´<RXQJ
)HPLQLVPDOVRKLJKOLJKWVWKHH[WHQW³WRZKLFKZRPHQDUHVWLOOZRUNLQJDJDLQVWD
FRORQLDO OHJDF\ WKDW ZDV LWVHOI SRZHUIXOO\ SDWULDUFKDO±LQVWLWXWLRQDO HFRQRPLF
SROLWLFDO DQG LGHRORJLFDO´ <RXQJ 7KH HIIRUW RI IHPLQLVWV LV WR GHVWUR\ WKH
P\WKRIZRPDQ¶VLQIHULRULW\7KHIHPLQLVWFULWLFLVPWRGD\³LVFRQFHUQHGZLWKKRZ
ZRPHQ¶VOLYHVKDYHFKDQJHGWKURXJKRXWKLVWRU\DQGLWDVNVZKDWDERXWZRPHQ¶V
H[SHULHQFH GLIIHUHQW IURP PHQ¶V HLWKHU DV D UHVXOW RI DQ HVVHQWLDO RQWRORJLFDO RU
SV\FKRORJLFDO GLIIHUHQFH RU DV D UHVXOW RI KLVWRULFDO LPSULQWLQJ DQG VRFLDO
FRQVWUXFWLRQ´5\DQ
)HPLQLVWV EHOLHYH WKDW WKH\ OLYH LQ D SDWULDUFKDO FXOWXUH ZKHUH PHQ KDYH
RUJDQL]HG WKH FXVWRPV DQG WKH FLYLOL]DWLRQ LQ WKHLU RZQ LQWHUHVW DQG IDYRXU
7KURXJKRXW KLVWRU\ ZRPHQ KDYH ³DOZD\V EHHQ VXERUGLQDWHG WR PHQ DQG KHQFH
WKHLUGHSHQGHQF\LVQRWWKHUHVXOWRIDKLVWRULFDOHYHQWRUDVRFLDOFKDQJH²LWZDV
QRW VRPHWKLQJ WKDW RFFXUUHG´ EXW VRPHWKLQJ WKDW KDV EHHQ IRUFHG WKURXJK WKH
VRFLDO VWUXFWXUH %HDXYRLU [OYLL 7KH LQDGHTXDF\ DQG VXERUGLQDWLRQ RI ZRPHQ
KDYH EHHQ SURSDJDWHG VLQFH WLPHV LPPHPRULDO )HPLQLVP WDONV DERXW ³ZRPHQ¶V
LQIHULRUSRVLWLRQLQVRFLHW\DQGGLVFULPLQDWLRQHQFRXQWHUHGE\ZRPHQEHFDXVHRI
WKHLU VH[ )XUWKHUPRUH RQH FRXOG DUJXH WKDW DOO IHPLQLVWV FDOO IRU FKDQJHV LQ WKH
VRFLDO HFRQRPLF SROLWLFDO RU FXOWXUDO RUGHU WR UHGXFH DQG HYHQWXDOO\ RYHUFRPH
WKLVGLVFULPLQDWLRQDJDLQVWZRPHQ´)UHHGPDQ7KHIHPLQLVWVILJKWDJDLQVWWKH
IRXQGDWLRQ RI VXEMHFWLYLW\ DQG SDUWLVDQVKLS WKH PDOH GRPLQDWLQJ HQWHUSULVH DQG
WKH H[LVWLQJ DXWKRULWDWLYH FRQVWLWXWLRQ RI QRUPV DQG YDOXHV 7KHLU SXUSRVH LV WR
GLVPDQWOH WKH FRQVWUXFWV ZKLFK EXLOG DQG GHPROLVK WKH LGHQWLW\ RI ZRPHQ
DFFRUGLQJ WR WKH QHHGV RI SDWULDUFK\ )HPLQLVWV ILJKW DJDLQVW WKH WHUP ZRPDQ
ZKLFK LV FRQVLGHUHG ³GHURJDWRU\ QRW EHFDXVH LW HPSKDVL]HV ZRPDQ¶V DQLPDOLW\
EXWEHFDXVHLWLPSULVRQVKHULQKHUVH[´%HDXYRLU
)HPLQLVP EHJDQ LQ WKH HDUO\ QLQHWHHQWK FHQWXU\ DV D ZHVWHUQ SROLWLFDO
PRYHPHQW,Q¶VZKHQDJURXSRIZRPHQXUJHGIRUWKHSULQFLSOHVRIOLEHUW\
DQG HTXDOLW\ WKH :RPHQ¶V 5LJKWV 0RYHPHQW VWDUWHG WR HPHUJH LQ WKH 8QLWHG
6WDWHV%XWWKLVGRHVQRWPHDQWKDWEHIRUHWKH¶VZRPHQGLGQRWGHPDQGWKHLU
ULJKWV7KHSXEOLFDWLRQRI$9LQGLFDWLRQRIWKH5LJKWVRI:RPHQE\0DU\
:ROOVWRQHFUDIW LV HYLGHQFH WKDW ZRPHQ ZHUH ILJKWLQJ DJDLQVW LQHTXDOLW\ DQG
LQMXVWLFHHYHQLQWKHHLJKWHHQWKFHQWXU\7KHWHUPIHPLQLVPHPHUJHG³ORQJDIWHU
ZRPHQVWDUWHGTXHVWLRQLQJWKHLULQIHULRUVWDWXVDQGGHPDQGLQJDQDPHOLRUDWLRQLQ
WKHLUVRFLDOSRVLWLRQ´)UHHGPDQ,QWKHEHJLQQLQJWKLVPRYHPHQWZDVRQO\DQ
DFWLYLVWIDFWLRQDQGWRZDUGV¶VWKHZRPHQZHQWEDFNKRPHDIWHUKDYLQJZRQ
DPRQJRWKHUWKLQJVWKHULJKWWRVXIIUDJH)URPWRWKHIHPLQLVWYRLFH
ZDV QRW DXGLEOH ,W VHHPHG WKDW ZLWK WKH HQG RI )LUVW :DYH )HPLQLVP ZKLFK
VWDUWHGLQWKHODWHQLQHWHHQWKDQGHDUO\WZHQWLHWKFHQWXU\WKHIHPLQLVWSURJUHVVKDG
FRPHWRLWVFORVLQJVWDJHV%XWWKLVGRHVQRWPHDQWKDWIHPLQLVPGXULQJWKLVSHULRG
GLHG RU EHFDPH LQDFWLYH 7KH IHPLQLVWV EHFDPH ³OHVV YLVLEOH DQG WKHLU YRLFHV
>ZHUH@ KHDUG OHVV GXULQJ WKLV SHULRG´ )UHHGPDQ 'XULQJ WKLV SKDVH WKH
SXEOLFDWLRQRIDQLPSRUWDQWERRN7KH6H[XDO3ROLWLFVVKRZVWKDWIHPLQLVWZULWHUV
OLNH6LPRQHGH%HDXYRLUNHSWWKHVWUXJJOHDOLYH
,Q WKH ODWH ¶V DQG WKH EHJLQQLQJ RI ¶V FRPPHQFHG WKH 6HFRQG
:DYH )HPLQLVP ZKHQ WKH VWUXJJOH EHFDPH PRUH DFDGHPLF DQG OLWHUDU\ ZLWK
IHPLQLVWVOLNH.DWH0LOOHWW6LPRQHGH%HDXYRLUDQG%HWW\)ULHGDQ,WVHQGHDYRXU
ZDV WR EULQJ DERXW VRFLDO FKDQJH 7KH DLP ZDV QRW RQO\ WKH VXIIUDJH ULJKWV EXW
DOVRHTXDOULJKWVLQWKHILHOGVRIIDPLO\QDWLRQDOLW\FODVVDQGZRUN7KH6HFRQG
:DYH FRQWLQXHV WLOO WRGD\ GHVSLWH WKH PDWHULDOL]DWLRQ RI PDQ\ VXEJURXSV QHZ
JURXSVDQGPDQ\UHVLVWDQFHVDQGUHYROWVZLWKLQWKHDVVRFLDWLRQ7KHVHVXEJURXSV
URVH DJDLQVW WKH ³XQLYHUVDOL]LQJ WKHRULHV RI ZRPHQ¶V FRPPRQ RSSUHVVLRQ ´
)UHHGPDQ 7KHVH VHWV RI ZRPHQ EHOLHYH WKDW ³VRPH IHPLQLVWV KDYH
XQLYHUVDOL]HGIURPWKHLURZQSHUVRQDOH[SHULHQFHDQGKDYHFUHDWHGDQµHVVHQWLDO¶
PRGHORIZRPDQ²DPRGHOEDVHGRQDGRPLQDQWZKLWHPLGGOHFODVVH[SHULHQFH
DQG DVSLUDWLRQV´ )UHHGPDQ 7KH VXEJURXSV DQG WKH QHZ JURXSV UHYROWHG
DJDLQVW WKH LQFOLQDWLRQ WR HYDGH GLIIHUHQFHV DQG WKH\ VWRRG LQ RSSRVLWLRQ WR WKH
LGHDRIKDUPRQ\DQGKRPRJHQHLW\LQGLIIHUHQWFDWHJRULHVRIIHPLQLVPV7KHUHKDV
DOZD\V EHHQ D GHPDQG IRU UHFRJQLWLRQ RI WKH GLIIHUHQFHV RI FODVV DJH DELOLW\
UHOLJLRQ DPRQJVW ZRPHQ VR WKDW DOO WKH ZRPHQ DUH EHQHILWHG IURP IHPLQLVW
PRYHPHQWV
7KH 3RVWPRGHUQ DQG 3RVWVWUXFWXUDOLVW )HPLQLVW DSSURDFKHV ² VRPHWLPHV
VHHPDVQLKLOLVWLFLQFKDUDFWHU²GHPDQGWKHDFNQRZOHGJPHQWRIWKHGLIIHUHQFHV
DPRQJ ZRPHQ DQG WKHLU SUREOHPV 7KHVH WZR IHPLQLVPV DUH RIWHQ XVHG
LQWHUFKDQJHDEO\ EHFDXVH RI WKHLU VLPLODULWLHV FRPPRQ ELUWK DQG DSSURDFKHV
$FFRUGLQJ WR WKHP WKH GLVWLQFWLRQV RQ WKH EDVLV RI HWKQLFLW\ WUDGLWLRQV FXVWRPV
DQG QDWLRQV VKRXOG EH JLYHQ UHDVRQDEOH VSDFH DQG UHFRJQLWLRQ 7KHVH
3RVWVWUXFWXUDOLVW DQG 3RVWPRGHUQLVW )HPLQLVWV WKLQN DERXW ³QRW RQO\ GLIIHUHQFHV
EHWZHHQ PHQ DQG ZRPHQ RU GLIIHUHQFHV EHWZHHQ ZRPHQ WKHPVHOYHV EXW DOVR D
GLIIHUHQFH ZLWKLQ DQG FRQVWLWXWLYH RI WKH ZRPDQ VXEMHFW RU D GLIIHUHQFH µZLWKLQ
ZRPDQ¶´ (YDQV 3RVWVWUXFWXUDOLVW DQG WKH 3RVWPRGHUQLVW )HPLQLVPV DUH LQ
IDYRXURIGHFRQVWUXFWLRQRIHVVHQWLDOLVPLQFDWHJRUL]LQJZRPHQ3RVWVWUXFWXUDOLVW
DQG WKH 3RVWPRGHUQLVW )HPLQLVPV DUH WKXV EDVHG RQ WKH DVVXPSWLRQ WKDW
³IHPLQLQLW\DQGPDVFXOLQLW\KDYHQRIL[HGRUNQRZDEOHPHDQLQJVDQGWKH\DUJXH
IRU WKH QHHG WR GHFRQVWUXFW WKH SURFHVVHV ZKHUHE\ FHUWDLQ TXDOLWLHV FRPH WR EH
GHILQHGDVIHPLQLQHDQGPDVFXOLQH´)UHHGPDQ
$QRWKHU JURXS LV WKDW RI WKH 7KLUG :RUOG )HPLQLVWV ,W EHOLHYHV WKDW ZKLWH
IHPLQLVWVDUH(XURFHQWULFDQGWU\WRLPSRVHWKHZHVWHUQPRGHORIIHPLQLVPRQDOO
IHPLQLVWV ZLWKRXW DQ\ GLVFULPLQDWLRQ RI KRZ FRORQL]DWLRQ DQG FDSLWDOLVP DIIHFW
GLIIHUHQWZRPHQLQGLIIHUHQWZD\V$FFRUGLQJWRWKH7KLUG:RUOG)HPLQLVWVWKHLU
UHSUHVHQWDWLRQ E\ WKH :HVWHUQ )HPLQLVWV IXUWKHU KHOSV LQ WKH MXVWLILFDWLRQ RI WKH
SURFHVVRIFRORQL]DWLRQWKDWSURSDJDWHVWKHUHTXLUHPHQWRIHGXFDWLQJKXPDQL]LQJ
FLYLOL]LQJDQGSURWHFWLQJWKH7KLUG:RUOGZRPHQIURPVXEPLVVLYHFRQWUROOHGDQG
ELQGLQJ SRVLWLRQV 7KXV WKH 7KLUG :RUOG ZRPHQ FRPSODLQ WKDW WKH\ ³DUH RIWHQ
VHHQ DV SDVVLYH YLFWLPV RI SDWULDUFKDO RSSUHVVLRQ DQG WKHLU DJHQF\ LV LJQRUHG´
)UHHGPDQ
,Q DGGLWLRQ WR WKH DERYH PHQWLRQHG JURXSV WKH %ODFN )HPLQLVWV DUH DOVR
SURPLQHQW ,Q WKH ¶V WKH EODFN ZULWHUV ZHUH LQFRUSRUDWHG LQ WKH V\OODEL RI
XQLYHUVLWLHV ZKLFK PDGH WKHLU ZRUN ZRUWK\ RI DWWHQWLRQ FRQVLGHUDWLRQ DQG FULWLFDO
DQDO\VLV 7KH %ODFN )HPLQLVWV FDPH WR WKH IRUHIURQW LQ ¶V DQG ¶V 7KH
LQWHUFRQQHFWLRQ RI UDFH DQG JHQGHU EHFRPHV IRUFHIXOO\ HVWDEOLVKHG ZLWK WKH
PDWHULDOL]DWLRQRI%ODFN)HPLQLVWVLQWKHILHOGRIIHPLQLVP7KHDQWLUDFLVWVWUXJJOH
RI WKH %ODFN )HPLQLVWV ³ZDV ERUQ RXW RI UHFRJQLWLRQ RI WKH GLIIHUHQFHV EHWZHHQ
ZRPHQ DQG RXW RI WKH DQWLLPSHULDOLVW FDPSDLJQV RI µILUVW¶ DQG µWKLUGZRUOG¶
ZRPHQ´ /HZLV 0LOOV $FFRUGLQJ WR WKH %ODFN )HPLQLVWV JHQGHU LV DOZD\V
UDFLDOLVHGDQGWKHFRORQL]HGZRPHQKDYHWRIDFHGRXEOHRSSUHVVLRQ7KH\EHOLHYH
WKDWWKHH[SHULHQFHVRIWKHULFKZKLWHZRPHQDUHGLIIHUHQWIURPWKDWRISRRUEODFN
RQHV)RUWKH%ODFN)HPLQLVWVWKHSUHVHQWPRYHPHQWLVFDUULHGRQE\DQGIRURQO\
WKHXSSHUFODVVZKLWHZRPHQZKRFRQFHLYHDQGRYHUVLPSOLI\HYHU\WKLQJIURPWKHLU
RZQ YDQWDJH SRLQW ,W UHVXOWV LQ WKH H[SHULHQFHV RI WKH EODFN ZRPHQ ZRUNLQJ RU
QRQZRUNLQJ EHLQJ XQQRWLFHG +HQFH WKHUH LV D QHHG WR VWXG\ WKH SUREOHPV DQG
H[SHULHQFHVRIWKHEODFNZRPHQIURPDGLIIHUHQWSHUVSHFWLYH
7KH%ODFN)HPLQLVWVURVHDJDLQVW³ZKLWHPLGGOHFODVV:HVWHUQZRPHQ>ZKR@
ZHUH FODLPLQJ WR VSHDN QRW RQO\ IRU DOO ZRPHQ LQ WKHLU VRFLHWLHV EXW IRU ZRPHQ
HYHU\ZKHUH XQLYHUVDOL]LQJ IURP WKHLU RZQ H[SHULHQFHV DQG OLIH VLWXDWLRQV DQG
LJQRULQJ WKH HIIHFWV RI FDSLWDOLVP UDFLVP DQG FRORQLDOLVP ZKLFK SURYHG GLYLVLYH
IRUFHVDPRQJZRPHQ´)UHHGPDQ7KHVHIHPLQLVWVRSSRVHWKHZKLWHZRPHQ¶V
(XURFHQWULFLVP DQG WKHLU DGRSWHG ULJKWV WR VSHDN IRU EODFN ZRPHQ 7KH %ODFN
)HPLQLVWVRIWHQDFFXVHWKHRWKHUJURXSVRIIHPLQLVWV³RIGHYHORSLQJWKHLULGHDVRQO\
LQUHIHUHQFHWRZKLWHXSSHUPLGGOHFODVVZRPHQZKRRIWHQWLPHVSUDFWLFHIHPLQLVP
RQO\LQRUGHUWREHFRPHSDUWRIWKHSDWULDUFKDOSRZHUVWUXFWXUH´*XHULQ7KH
%ODFN )HPLQLVWV EHOLHYH WKDW WKH\ ZDQW WR VKDUH HTXDO ULJKWV ZLWK PHQ OLNH HTXDO
ZDJHV FKLOG FDUH HWF 7KH %ODFN )HPLQLVWV DOVR FULWLFL]H WKH FRQFHQWUDWLRQ RI WKH
ZKLWHIHPLQLVWVRQWKHZKLWHZRPHQDVVXEMHFWVRIVWXG\GXULQJWKHFRORQLDOSHULRG
(YHQ LQ WKH ILHOG RI OLWHUDWXUH WKH FULWLFV DQG WKH UHDGHUV DUH PDGH WR FRQFHQWUDWH
PRUH RQ WKH ZKLWH ZRPHQ WKDQ WKH EODFN RQHV :KHQ WKH VXEDOWHUQ ZRPHQ JLYH
YRLFH WR WKHLU SRLQW RI YLHZ WKHLU DUWLFXODWLRQ LV DOZD\V FRORXUHG DQG DGXOWHUDWHG
ZLWKWKHGRPLQDQWGLVFRXUVH7KHHIIRUWRIWKH%ODFN)HPLQLVWVLVWRUHGLVFRYHUWKH
VWUXJJOHRIWKHEODFNZRPHQDJDLQVWVODYHU\DQGSDWULDUFK\7KH\WU\WREULQJWRWKH
IRUHIURQWWKHEURNHQDQGVXSSUHVVHGYRLFHRIWKHVXEMXJDWHGVXEDOWHUQZRPHQ7KH
%ODFN)HPLQLVWVWU\WRJLYHPRUHVSDFHWRWKHVXEDOWHUQZRPHQWKHLUUHVLVWDQFHDQG
WKHLUPRYHPHQWDJDLQVWWKHWULR²FRORQL]DWLRQSDWULDUFK\DQGZKLWHIHPLQLVWV
*D\DWUL6SLYDNDOVREHOLHYHVWKDWWKH2WKHUVFDQQHYHUVSHDNIRUWKHPVHOYHV
6SLYDNVD\V³WKHVXEDOWHUQKDVQRKLVWRU\DQGFDQQRWVSHDNWKHVXEDOWHUQZRPDQ
LV HYHQ PRUH GHHSO\ LQ VKDGRZ´ 6SLYDN $FFRUGLQJ WR KHU ZKHQ D ZKLWH
ZULWHUWULHVWRJLYHYRLFHWRWKHIHHOLQJVDQGVHQWLPHQWVRIWKHVXIIHULQJRIWKHQRQ
ZKLWHVWKHZULWHUFDQQRWDUWLFXODWHWKHYRLFHRIWKHFRORQL]HGZRPHQLPSDUWLDOO\
7KH VSHHFK DQG YRLFH RI WKH QRQZKLWH ZRPHQ LV DOZD\V FRORXUHG ZLWK WKH
SHUVSHFWLYH RI WKH ZULWHU ZKR WULHV WR VSHDN RQ EHKDOI RI WKH VXEDOWHUQ ZRPHQ
0RUHRYHU WKH XVH RI WKH GRPLQDQW GLVFRXUVH IRU WKH UHSUHVHQWDWLRQ RI WKH
FRORQL]HG PRXOGV WKH YLHZV RI ERWK WKH ZULWHU DQG WKH VXEDOWHUQ ZRPDQ )RU
H[DPSOH (GZDUG 6DLG¶V 2ULHQWDOLVP GRHV QRW JLYH PXFK VSDFH WR WKH VWXG\ RI
ZRPDQDJHQF\ZRPHQ¶VH[SHULHQFHVDQGFXOWXUH7KHIHPLQLVWLQWHUYHQWLRQLQWKH
SRVWFRORQLDO WKHRU\ GLVPLVVHV WKH SULYLOHJHV WKDW WKH PDOH KDYH EHHQ HQMR\LQJ DV
WKH PDLQ VXEMHFW RI WKH FRORQLDO DQG SRVWFRORQLDO VWXGLHV /HZLV DQG 0LOOV
DSSUHFLDWH 0LUQDOLQL 6LQKD ZKR PDNHV DQ HIIRUW ³WR SRVLWLRQ PDOH %ULWLVK
LPSHULDOLVWV DV JHQGHUHG UDWKHU WKDQ DV XQLYHUVDOL]HG DQG KHQFH QHXWUDO VXEMHFWV´
/HZLV DQG 0LOOV $ SRVWFRORQLDOIHPLQLVW PD\ REVHUYH WKDW .LSOLQJ¶V
IDVFLQDWLRQ ZLWK WKH (PSLUH FXOWXUDO KHJHPRQ\ DQG UDFLDO VXSHULRULW\ PDNH KLV
.LP D PDOHRULHQWDWHG ZRUN :RPHQ KDYH EHHQ SRUWUD\HG RQO\ DV REMHFWV RI
URPDQWLFRUVH[XDODFFHVVRU\%XWIRU6KDPOHJKDQGWKHZLGRZRI.XOXWKHRWKHU
ZRPHQFKDUDFWHUVLQWKHQRYHODUHSURVWLWXWHVRUVXSSOLHUV6RPHWLPHVGXHWRWKH
VRFLDO DQG SROLWLFDO FOLPDWH RI WKH 9LFWRULDQ HUD WKDW .LSOLQJ ZDV ZULWLQJ LQ
.LSOLQJ¶VUDFLDODQGVH[XDOSUHMXGLFHVDSSHDUWREHMXVWLILHG
$QRWKHU QRQZKLWH FULWLF EHOO KRRNV ZULWHV DERXW WKH KLVWRU\ RI WKH EODFN
ZRPHQLQ8QLWHG6WDWHV,Q$LQ¶W,D:RPDQVKHVD\VWKDWWKHDWURFLRXVEDWWHULQJ
DQGUDSHRQEODFNZRPHQGXULQJVODYHU\LQWKH8QLWHG6WDWHV³OHGWRDGHYDOXDWLRQ
RIEODFNZRPDQKRRGWKDWSHUPHDWHGWKHSV\FKHVRIDOOWKH$PHULFDQVDQGVKDSHG
WKH VRFLDO VWDWXV RI DOO WKH EODFN ZRPHQ RQFH VODYHU\ HQGHG´ KRRNV 7KH
SV\FKRORJLFDO HIIHFW DV PHQWLRQHG LQ WKH TXRWH UHVXOWV LQ WKH HPHUJHQFH RI
VWHUHRW\SHV )RU H[DPSOH WKH EODFN ZRPHQ LQ $PHULFD HYHQ WRGD\ DUH VHHQ DV
ZKRUHV DQG SURVWLWXWHV 7KH ZKLWH IHPLQLVWV VHH WKH SUREOHPV RI WKH QRQZKLWH
ZRPHQIURPWKHLURZQSHUVSHFWLYH$XGUH/RUGHYRLFHVWRWKHVDPHLGHDZKHQKH
VD\V ³%\ DQG ODUJH ZLWKLQ WKH ZRPHQ¶V PRYHPHQW WRGD\ ZKLWH ZRPHQ IRFXV
XSRQWKHLURSSUHVVLRQDVZRPHQDQGLJQRUHGLIIHUHQFHVRIUDFHVH[XDOSUHIHUHQFH
FODVV DQG DJH 7KHUH LV SUHWHQFH RI KRPRJHQHLW\ RI H[SHULHQFH FRYHUHG E\ WKH
ZRUG VLVWHUKRRG WKDW GRHV QRW LQ IDFW H[LVW´ /RUGH /LNH WKH EODFN WKH
OHVELDQIHPLQLVWVDOVRUDLVHVXFKLVVXHVDVKDGQHYHUEHHQDOORZHGWRWDNHVKHOWHU
XQGHUWKHXPEUHOODRIIHPLQLVP0RUHRYHUWKH/HVELDQVFRPSODLQWKDWWKH\KDYH
EHHQ³ZULWWHQRXWRIOLWHUDWXUHDQGKLVWRU\PRUHWKDQZKLWHKHWHURVH[XDOZRPHQ´
*XHULQ
7KH /LEHUDO )HPLQLVWV FDPSDLJQ IRU HTXDO ULJKWV DQG HTXDO FLWL]HQVKLS IRU
ZRPHQ LQ D OLEHUDO VWDWH DQG WKH 5DGLFDO )HPLQLVWV FRQVLGHU WKDW SDWULDUFK\ LV
UHVSRQVLEOHIRUWKHGHSORUDEOHFRQGLWLRQVRIZRPHQ2WKHUWKDQWKHGHYHORSPHQW
RI WKH EORFV RI IHPLQLVW VWUXJJOH GLVFXVVHG DERYH (ODLQH 6KRZDOWHU TXRWHG E\
*XHULQ LQ $ +DQGERRN RI &ULWLFDO $SSURDFKHV WR /LWHUDWXUH UHFRJQL]HV WKUHH
SKDVHVRIIHPLQLVWJURZWKLQWKHOLWHUDU\ILHOG
WKH µIHPLQLQH¶ SKDVH GXULQJ ZKLFK ZRPHQ ZULWHUV
LPLWDWHG WKH GRPLQDQW WUDGLWLRQ WKH µIHPLQLVW¶ SKDVH GXULQJZKLFKZRPHQDGYRFDWHGPLQRULW\ULJKWVDQGSURWHVWHGDQGWKH
µIHPDOH¶ SKDVH SUHVHQW GXULQJ ZKLFK GHSHQGHQF\ RQ
RSSRVLWLRQ±WKDWLVRQXQFRYHULQJPLVRJ\Q\LQPDOHWH[WV±LVEHLQJ
UHSODFHGE\DUHGLVFRYHU\RIZRPHQ¶VWH[WVDQGZRPHQ*XHULQ
7KHDERYHVWDWHGGLYHUVLW\LQIHPLQLVPVDQGWKHYDULRXVIHPLQLVWFULWLFDOWKHRULHV
KDYHEHHQVXPPHGXSE\(ODLQH6KRZDOWHUZKRVD\V³(QJOLVKIHPLQLVWFULWLFLVP
HVVHQWLDOO\ 0DU[LVW VWUHVVHV RSSUHVVLRQ )UHQFK IHPLQLVW FULWLFLVP HVVHQWLDOO\
SV\FKRDQDO\WLF VWUHVVHV UHSUHVVLRQ $PHULFDQ IHPLQLVW FULWLFLVP HVVHQWLDOO\
WH[WXDOVWUHVVHVH[SUHVVLRQ´6KRZDOWHU%XWGHVSLWHWKHGLYHUVLWLHV³IHPLQLVW
FULWLFV JHQHUDOO\ DJUHH WKDW WKHLU JRDOV DUH WR H[SRVH SDWULDUFKDO SUHPLVHV DQG
UHVXOWLQJSUHMXGLFHVWRSURPRWHGLVFRYHU\DQGUHYDOXDWLRQRIOLWHUDWXUHE\ZRPHQ
DQG WR H[DPLQH VRFLDO FXOWXUDO DQG SV\FKRVH[XDO FRQWH[WV RI OLWHUDWXUH DQG
OLWHUDU\ FULWLFLVP´ *XHULQ )HPLQLVW FULWLFLVP LV ULFK DQG SOXUDO DV LW
VFUXWLQL]HVWKHH[SHULHQFHVRIZRPHQRIDOOUDFHVFXOWXUHVFDVWHVFODVVHVUHJLRQV
DQGUHOLJLRQV(QOLVWLQJWKHDLPVRI)LUVWDQGWKH6HFRQG:DYHIHPLQLVPVYDULRXV
IHPLQLVW VXEJURXSV DQG QHZ JURXSV LW PD\ EH ILJXUHG RXW WKDW DOO IHPLQLVWV LQ
JHQHUDO UDLVH DQ REMHFWLRQ WR WKH VWHUHRW\SHV DQG GHILQLWLRQV SUHDUUDQJHG DQG
GHYHORSHG E\ WKH PDOH GRPLQDWHG FXOWXUH 7KH JHQGHU VWXG\ LV UHODWHG WR SRZHU
DXWKRULW\VXSUHPDF\FRQWUROH[SORLWDWLRQVWUXJJOHFRQIURQWDWLRQDQGUHVLVWDQFH
WR KHJHPRQ\ DQG LV QDWXUDOO\ LQFRUSRUDWHG LQ WKH DUHD RI SRVWFRORQLDO VWXG\
&RQWHPSODWLQJXSRQWKHQHHGDQGLPSRUWDQFHRIWKHIHPLQLVWDQGJHQGHUVWXGLHV
LQ WKH SRVWFRORQLDO ILHOG WKH VHFRQG FKDSWHU GHDOV ZLWK &RQUDG¶V SHUVSHFWLYH RI
ZRPHQLQKLVQRYHOV
$IWHU WKH GLVFXVVLRQ RI UDFH FODVV DQG JHQGHU LQ UHODWLRQ WR SRVWFRORQLDO
WKHRU\ ZH FRPH WR WKH GLVFXVVLRQ RI WKH WKUHH FKDSWHUV LQ WKH GLVVHUWDWLRQ 7KH
FKDSWHUV VWDQG LQGHSHQGHQW RI RQH DQRWKHU DQG \HW DUH DOVR FRQQHFWHG ZLWK WKH
WKHPDWLF WKUHDG RI WKH DSSOLFDWLRQ RI SRVWFRORQLDO WKHRU\ RQ &RQUDG 7KHVH
FKDSWHUVDLPWRDVVHVKRZD3ROLVKERUQ%ULWLVKQRYHOLVWVHHVWKHRQFHFRORQL]HG
DQG WKH DIIOLFWHG SRSXODWLRQV RI $IULFD DQG WKH 0DOD\DQ LVODQGV 7KH\ VHHN
DQVZHUV WR VRPH NH\ TXHVWLRQV KDV &RQUDG EHHQ DEOH WR VHYHU KLPVHOI IURP WKH
KHJHPRQLF ZKLWH VXSUHPDF\ DQG (XURFHQWULFLW\ RU GRHV KH EHFRPH D YLFWLP RI
WKH UDFLVW DQG VH[LVW FRQVWUXFWV RI WKH FRORQLDO ZRUOGYLHZ" +RZ PXFK GRHV
&RQUDG VWUXJJOH WR GLVPDQWOH WKH DVVXPSWLRQV RI WKH KHJHPRQLF FXOWXUDO DQG
SDWULDUFKDOVWDQFHVRIWKHUXOLQJDXWKRULWLHV":K\GRHV&RQUDG¶VFRPPLWPHQWDQG
DGKHUHQFH WR WKH FRORQLDO SULQFLSOHV DQG GXWLHV VRPHWLPHV VHHP WR EH GXELRXV"
'RHV&RQUDGULVHDERYHWKHFRQVWUXFWVGHYLVHGE\WKHGLVFRXUVHRIKLVWLPHV"+RZ
PXFK VSDFH GRHV &RQUDG JLYH WR WKH EODFN YRLFH" 'RHV &RQUDG H[SRVH WKH
LQVHQVLWLYH DQG H[SORLWDWLYH W\UDQQ\ RI WKH ZKLWH WUDGHUV RI WKH FRORQLDO HUD LQ
WRWDOLW\ RU DUH WKH UHDGHUV PDGH WR IRUJHW WKRVH WKDW H[LVW DW WKH UDYDJHG DQG WKH
GHYDVWDWHGSHULSKHU\":K\GRHVKHVHHPWRGLVPLVVWKHQRQZKLWHVZKRXQGHUJR
VRFLDOFXOWXUDODQGHFRQRPLFRSSUHVVLRQ":K\GRHVWKHDSSDOOLQJVXEMXJDWLRQRI
WKH VLGHOLQHG E\ WKH VRFDOOHG VXSHULRU (XURSHDQ GRPLQDWLQJ SRZHUV DSSHDU LQ
FUHYLFHVDQGILVVXUHV"7KHVHTXHVWLRQVDPRQJRWKHUVSURYLGHDSSURSULDWHJURXQG
WRVWXG\WKHUHODWLRQVKLSEHWZHHQ&RQUDG¶VGRPLQDWLQJLQWUXGHUDQGKLVGRPLQDWHG
VXEMHFW7KHTXHULHVKDYHEHHQDGGUHVVHGLQWKUHHGLIIHUHQWFKDSWHUV
1RRQHGHQLHVWKDW&RQUDGJLYHVVSDFHWRWKHVXEMXJDWHGWKHGDPDJHGHYHQ
SUHKLVWRULFVRFLHWLHVDQGDOVRDQWLTXDWHGUHJXODWLRQVLQKLVQRYHOV+HVHHPVWREH
GLVFUHWHO\ DUJXPHQWDWLYH DJDLQVW WKH UHSUHVVLYH DQG FRPPHUFLDO FKDUDFWHU RI WKH
GRPLQDWLQJ KHJHPRQ\ &RQUDG¶V GDULQJ EUHDN ZLWK WKH ERXUJHRLV FRQYHQWLRQDOLW\
RIWKHZHVWHUQKHJHPRQ\LVXQGHUGLVFXVVLRQLQWKHILUVWFKDSWHU3&&"!
& $! !4"! 5$QDWWHPSWKDVEHHQPDGHWRDQDO\VHKRZ&RQUDG
UHGUDZV DQ XQSUHMXGLFHG SLFWXUH RI WKH FRORQLDO ZRUOG E\ GHP\VWLI\LQJ WKH
SURSDJDWHGSKLORVRSK\DERXWWKHRYHUZKHOPLQJQDWXUHRILPSHULDOLQVWLWXWLRQVDQG
WKHLU VWDQGDUGV RI FRQGXFW ,W WUDFHV KRZ WKH IDPLOLDULW\ RI WKH SRVWFRORQLDO DXWKRU
ZLWK WKH SRZHU RI WKH VXSHULRUV OHG KLP WR EXLOG XS KLV XQXVXDO XVH RI QDUUDWLYH
VWUXFWXUH WR GHQRXQFH WKH LPSRVLQJ (XURSHDQ PLVVLRQ DQG WR GHFRQVWUXFW LWV
VWHUHRW\SHV 7KH TXHVWLRQ RI &RQUDG¶V ELDVHG RU XQELDVHG UHSUHVHQWDWLRQ RI WKH
LQGLJHQRXV UDFHV DQG KLV GLVPDQWOLQJ RI WKH FRQVWUXFWLRQ RI WKH WURSHV DERXW WKH
2WKHUV ZLOO EH LQVSHFWHG KHUH 7KH FKDSWHU DOVR LQYHVWLJDWHV ZKHWKHU &RQUDG
LPSDUWLDOO\ JLYHV YRLFH WR WKH VXEDOWHUQ ,Q WKLV FKDSWHU &RQUDG¶V SHUVSHFWLYH
WRZDUGV WKH XVH RI WKH GLVFRXUVH RI SURJUHVV LV DOVR DQDO\VHG $V D UHVXOW WKH
FKDSWHUDWWHPSWVWRHYDOXDWHZKHWKHURUQRW&RQUDGDVDQDQWLLPSHULDOLVWLVDEOHWR
IUDFWXUHWKHORJLFRIWKHGRPLQDWLQJDQGKHJHPRQLFLPSHULDOLVP"
7KHVHFRQGFKDSWHU3"! ;"!5KDVEHHQLQWHQGHGWRGHDOZLWKDQ
DQDO\VLV RI &RQUDG¶V DWWLWXGH WRZDUGV KLV ZRPHQ FKDUDFWHUV ² ZKLWH KDOI ZKLWH
DQG QRQZKLWH 7KH FKDSWHU H[SORUHV WKH ZRUNV RI &RQUDG ZKHUH WKH H[LVWHQFH RI
&RQUDG¶VZRPHQLVHLWKHUSDVVLYHRUQHJOLJLEOH,WTXHVWLRQVWKHPDUJLQDOLVDWLRQRI
NQRZOHGJHH[SHULHQFHVDQGDVSLUDWLRQVRIZRPHQVXEMHFWV,WDWWHPSWVWRVFUXWLQLVH
ZKHWKHU &RQUDG KDV EHHQ DEOH WR UHGHILQH WKH UROHV VWDWXV DQG WKH VSDFH JLYHQ WR
WKH VHFRQG VH[ ,W TXHVWLRQV ZKHWKHU RU QRW &RQUDG LV D SDUW RI WKH KHJHPRQLF
SDWULDUFKDO DUUDQJHPHQW WKDW FRQVWUXFWV WKH SV\FKRORJ\ RI ZRPHQ DQG NHHSV WKHP
VXERUGLQDWHGDQGVXEMXJDWHGLQDOOWKHILHOGV"7KHFKDSWHUH[DPLQHVKRZDQGZK\
WKHZRPHQRI&RQUDGZKRWU\WREUHDNRXWRIWKHFRQVWUXFWHGVFULSWVDUHPDGHWR
IDOOLQWKHWUDSRIDXWKRULWDULDQLVPDJDLQVRWKDWWKH\DUHQRWFRQGHPQHGDVEHLQJ
XQIHPLQLQH 7KH FKDSWHU H[DPLQHV LI WKH GRXEO\ FRORQL]HG ZRPHQ ² WKDW LV WKH
QRQZKLWHRUWKHKDOIFDVWH²DUHDOVRYLVLEOHDQGKHDUGLQWKHZRUNVRI&RQUDG
,QWKHWKLUGFKDSWHU3"! =2"#&">!!7 2 !25DQ
DWWHPSW KDV EHHQ PDGH WR DQDO\VH &RQUDG¶V PXOWLIDFHWHG DQG \HW DPELJXRXV
DWWLWXGHWRZDUGVWKHZHVWHUQDQGQRQZHVWHUQZRUOGV,WVWXGLHVZKHWKHU&RQUDGLV
DEOHWRFUDFNIXOO\WKHWUXWKRILPSHULDOLVWLGHRORJ\RUGRHVKHODFNLQKLVPLVVLRQ
7KHFKDSWHUVFUXWLQL]HV&RQUDG¶VQRYHOVZKLFKVHHPWREHDEDWWOHJURXQGZKHUH
WKH ZKLWH GHUDFLQDWHG PHQ DUH WRUPHQWHG DQG VWUXJJOH DJDLQVW RGGV 7KH FKDSWHU
H[DPLQHV ZK\ &RQUDG VHHPV WR VXSSRUW WKH VSLULW RI LPSHULDOLVP EDVHG RQ WKH
KHURLF UKHWRULF DQG YDOLDQW DFWLRQV RI WKH ZKLWHV" ,W SUREHV ZKHWKHU &RQUDG
SRUWUD\VDQGVXSSRUWVWKHGRPLQDQWLGHRORJLFDOVWUXFWXUHRIDQLPSHULDOLVWVRFLHW\
RI ZKLFK KH LV D FLWL]HQ DQG D SDUW :KHWKHU KH WULHV WR GLVJXLVH DQG FORWKH WKH
H[SORLWDWLYH DVVHUWLYH DQG LQHIIHFWXDO YDOXHV RI WKH FRORQLDO DXWKRULWLHV :K\ LV
&RQUDG VHHPLQJO\ HQFKDQWHG E\ WKH PRGHUQLW\ RI WKH FRPPHUFLDO FXOWXUH RI
FDSLWDOLVWDQGDIIOXHQWPLGGOHFODVVHV":KHWKHU&RQUDGKDVEHHQDEOHWRGRVRPH
MXVWLFH WR WKH QDWLYHV DQG WKH VXERUGLQDWH VH[ RU GRHV KH WU\ WR JORVV RYHU WKH
FRORQLDO DQG SDWULDUFKDO SROLFLHV RI H[SORLWDWLRQ E\ SULPDULO\ IRUHJURXQGLQJ WKH
VXIIHULQJ RI WKH DJHQWV RI WKH SURIHVVHG VXSHULRU ZKLWH UDFH" &RQUDG¶V GLYLGHG
OR\DOWLHV WRZDUGV ERWK WKH ZHVWHUQ DQG WKH QRQZHVWHUQ FLYLOL]DWLRQV EULQJ KLP
XQGHUWKHVKDUSVFDQQHURIWKHSRVWFRORQLDOVFUXWLQ\
#!2
$FKHEH&KLQXD³$Q ,PDJHRI$IULFD5DFLVPLQ&RQUDG¶V+HDUWRI'DUNQHVV´
-RVHSK &RQUDG +HDUW RI 'DUNQHVV $Q $XWKRULWDWLYH 7H[W (G 5REHUW
.LPEURXJK1HZ<RUN::1RUWRQ&RPSDQ\,QF
$VKFURIW%LOO7KH(PSLUH:ULWHV%DFN/RQGRQ5RXWOHGJH
%DQWRQ05DFH5HODWLRQV/RQGRQ5RXWOHGJHRI7KH%ODFN3UHVHQFH
LQ(QJOLVKOLWHUDWXUH'DYLG'DE\GHHQ0DQFKHVWHU0DQFKHVWHU8QLYHUVLW\
3UHVV
%HDXYRLU 6LPRQH GH 7KH 6HFRQG 6H[ 7UDQV +0 3DUVKHO\ 8.
(YHU\PDQ¶V/LEUDU\
%KDEKD +RPL ³7KH 2WKHU 4XHVWLRQ´ &RQWHPSRUDU\ 3RVWFRORQLDO 7KHRU\ $
5HDGHU (G 3DGPLQL 0RQJLD 1HZ 'HOKL 2[IRUG 8QLYHUVLW\ 3UHVV %KDNWLQ 0LNKDLO 3UREOHPV RI 'RVWRHYVN\¶V 3RHWLFV 0DQFKHVWHU 0DQFKHVWHU
8QLYHUVLW\3UHVV
&KLOGV3HWHUHG³,QWURGXFWLRQ&RORQLDO+LVWRU\1DWLRQDO,GHQWLW\DQGµ(QJOLVK¶
/LWHUDWXUH´3RVW&RORQLDO7KHRU\DQG(QJOLVK/LWHUDWXUH$5HDGHU
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
&RRSSDQ9LODVKLQL³:KLWKHU3RVWFRORQLDO6WXGLHV"7RZDUGVWKH7UDQVQDWLRQDO
6WXG\RI5DFHDQG1DWLRQ´3RVWFRORQLDO7KHRU\DQG&ULWLFLVP(G3DUU\
%HQLWD6XIIRON'6%UHZHU
(DJOHWRQ 0DU\ $ &RQFLVH &RPSDQLRQ WR )HPLQLVW 7KHRU\ 8. %ODFNZHOO
3XEOLVKLQJ
(YDQV-)HPLQLVW7KHRU\7RGD\/RQGRQ6DJH
)UHHGPDQ-DQH&RQFHSWVLQ6RFLDO6FLHQFHV)HPLQLVP1HZ'HOKL9LYD%RRNV
3ULYDWH/WG
*DQGKL /HHOD 3RVWFRORQLDO 7KHRU\ $ &ULWLFDO ,QWURGXFWLRQ 1HZ 'HOKL
2[IRUG8QLYHUVLW\3UHVV
*XHUDUG$OEHUW-³7KH-RXUQH\:LWKLQ´-RVHSK&RQUDG+HDUWRI'DUNQHVV$Q
$XWKRULWDWLYH 7H[W (G 5REHUW .LPEURXJK 1HZ <RUN :: 1RUWRQ &RPSDQ\,QF
*XHULQ:LOIUHG(DUOH/DERU/HH0RUJDQ-HDQQH&5HHVPDQ-RKQ5
:LOOLQJKDPHGV$+DQGERRNRI&ULWLFDO$SSURDFKHVWR/LWHUDWXUH1HZ
<RUN2[IRUG8QLYHUVLW\3UHVV
+DOO 6WXDUW ³&XOWXUDO ,GHQWLW\ DQG 'LDVSRUD´ &RQWHPSRUDU\ 3RVWFRORQLDO
7KHRU\ $ 5HDGHU (G 3DGPLQL 0RQJLD 1HZ 'HOKL 2[IRUG 8QLYHUVLW\
3UHVV
+HDGULFN'DQLHO57KH7RROVRI(PSLUH7HFKQRORJ\DQG(XURSHDQ,PSHULDOLVP
LQWKH1LQHWHHQWK&HQWXU\1HZ<RUN2[IRUG8QLYHUVLW\3UHVV
KRRNVEHOO$LQW,D:RPDQ%RVWRQ0$6RXWK(QG3UHVV
-RKQVRQ %UXFH ³&RQUDG¶V ,PSUHVVLRQLVP DQG :DWW¶V µ'HOD\HG 'HFRGLQJ¶´
-RVHSK &RQUDG +HDUW RI 'DUNQHVV $Q $XWKRULWDWLYH 7H[W (G 5REHUW
.LPEURXJK1HZ<RUN::1RUWRQ&RPSDQ\,QF
/D%UDVFD 5REHUW ³7ZR 9LVLRQV RI µ7KH +RUURU¶´ -RVHSK &RQUDG +HDUW RI
'DUNQHVV$Q$XWKRULWDWLYH7H[W(G5REHUW.LPEURXJK1HZ<RUN::
1RUWRQ&RPSDQ\,QF
/HZLV5HLQDDQG6DUD0LOOVHGV)HPLQLVW3RVWFRORQLDO7KHRU\$5HDGHU
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
/RUGH$XGUH6LVWHU2XWVLGH1HZ<RUN&URVVLQJ3UHVV
0RUULV -DPHV 3D[ %ULWDQQLFD /RQGRQ )DEHU DQG )DEHU RI 3RVW
&RORQLDO 7KHRU\ DQG (QJOLVK /LWHUDWXUH $ 5HDGHU (G 3HWHU &KLOGV
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
1DQG\$VKLV7KH,QWLPDWH(QHP\/RVVDQG5HFRYHU\RI6HOIXQGHU&RORQLDOLVP
'HOKL2[IRUG8QLYHUVLW\3UHVV
3DUU\ %HQLWD &RQUDG DQG ,PSHULDOLVP ,GHRORJLFDO %RXQGDULHV DQG 9LVLRQDU\
)URQWLHUV/RQGRQ7KH0DFPLOODQ3UHVV/WG
5LFH 3KLOLS 3DWULFLD :DXJK HGV 0RGHUQ /LWHUDU\ 7KHRU\ /RQGRQ
+RGGHU+HDGOLQH*URXS
5DPDPXUWKL/DOLWKD&7,QGUDHGV-RVHSK&RQUDG$Q$QWKRORJ\RI5HFHQW
&ULWLFLVP'HOKL3HQFUDIW,QWHUQDWLRQDO
5\DQ 0LFKDHO/LWHUDU\ 7KHRU\ $ 3UDFWLFDO ,QWURGXFWLRQ 8. %ODFNZHOO
3XEOLVKLQJ
6DLG(GZDUG2UHLQWDOLVP1HZ'HOKL3HQJXLQ%RRNV
6DOPRQ(77KH1HPLVLVRI(PSLUH2[IRUG8QLYHUVLW\3UHVVRI3RVW
&RORQLDO 7KHRU\ DQG (QJOLVK /LWHUDWXUH $ 5HDGHU (G 3HWHU &KLOGV
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
6KRKDW(OOD³1RWHVRQWKH3RVW&RORQLDO´&RQWHPSRUDU\3RVWFRORQLDO7KHRU\$
5HDGHU (G 3DGPLQL 0RQJLD 1HZ 'HOKL 2[IRUG 8QLYHUVLW\ 3UHVV 6KRZDOWHU (ODLQH ³)HPLQLVW &ULWLFLVP LQ WKH :LOGHUQHVV´ &ULWLFDO ,QTXLU\ 6LP6WXDUW7KH$=*XLGHWR0RGHUQ/LWHUDU\DQG&XOWXUDO7KHRULVWV
+HUWIRUVKLUH+DUYHVWHU:KHDWVKHDI
6LQJK)UDQFHV%³7KH&RORQLDOLVWLF%LDVRI+HDUWRI'DUNQHVV´-RVHSK&RQUDG
+HDUW RI 'DUNQHVV $Q $XWKRULWDWLYH 7H[W (G 5REHUW .LPEURXJK 1HZ
<RUN::1RUWRQ&RPSDQ\,QF
6SLYDN *D\DWUL &KDNUDYRUW\ ³&DQ WKH 6XEDOWHUQ 6SHDN"´ 7KH 3RVW&RORQLDO
6WXGLHV5HDGHU(GV%LOO$VKFURIW*DUHWK*ULIILWKVDQG+HOHQ7LIILQ
/RQGRQ5RXWOHGJH
6WHZDUG *DUUHWW ³/\LQJ DV '\LQJ´ -RVHSK &RQUDG +HDUW RI 'DUNQHVV $Q
$XWKRULWDWLYH 7H[W (G 5REHUW .LPEURXJK 1HZ <RUN :: 1RUWRQ &RPSDQ\,QF
6WDSH -+ HG 7KH &DPEULGJH &RPSDQLRQ WR -RVHSK &RQUDG &DPEULGJH
&DPEULGJH8QLYHUVLW\SUHVV
7HZDUL 9. -RVHSK &RQUDG LQ %KDNWLQLDQ 'LDORJLFV 1HZ 'HOKL 3HRSOH¶V
3XEOLVKLQJ+RXVH
7KLRQJ¶R1JXJL:D'HFRORQLVLQJWKH0LQG7KH3ROLWLFVRI/DQJXDJHLQ$IULFDQ
/LWHUDWXUH/RQGRQ-DPHV&XUUH\/WG
:DOGHU'HQQLV³6WXG\LQJ3RVW&RORQLDO/LWHUDWXUHV´3RVW&RORQLDO/LWHUDWXUHLQ
(QJOLVK +LVWRU\ /DQJXDJH 7KHRU\ 0DVVDFKXVHWWV 7KH %ODFNZHOO
3XEOLVKHUV
:DWW,DQ³,PSUHVVLRQLVPDQG6\PEROLVPLQ+HDUWRI'DUNQHVV´-RVHSK&RQUDG
+HDUW RI 'DUNQHVV $Q $XWKRULWDWLYH 7H[W (G 5REHUW .LPEURXJK 1HZ
<RUN::1RUWRQ&RPSDQ\,QF
:LOPLQJWRQ0LNH³:RUWKWKH:DLW$SRFDO\SVH1RZ´-RVHSK&RQUDG+HDUWRI
'DUNQHVV$Q$XWKRULWDWLYH7H[W(G5REHUW.LPEURXJK1HZ<RUN::
1RUWRQ&RPSDQ\,QF
:ROIUH\V -XOLDQ /LWHUDU\ 7KHRULHV $ 5HDGHU *XLGH 1HZ <RUN 1HZ <RUN
8QLYHUVLW\3UHVV
<RXQJ 5REHUW -& 3RVWFRORQLDOLVP $ 9HU\ 6KRUW ,QWURGXFWLRQ 1HZ <RUN
2[IRUG8QLYHUVLW\3UHVV
& !
&&"!& $! !4"! .
&KDSWHU 2QH RI WKH GLVVHUWDWLRQ DWWHPSWV WR FULWLFDOO\ DSSUDLVH &RQUDG¶V
DUJXPHQWDWLYH DSSURDFK WRZDUGV LPSHULDOLVP LWV SROLFLHV LWV VWUDWHJLHV LWV
JXLGLQJ SULQFLSOHV DQG LWV UHSUHVHQWDWLYHV &RQUDG¶V FKLOGKRRG LQ WKH GRPLQDWHG
3RODQGDQGKLVSHUVRQDO HQFRXQWHUZLWKWKHLPSHULDOSURMHFWDVWKH0DVWHULQWKH
%ULWLVK0HUFKDQW0DULQHVWUHQJWKHQVKLVVWDQFHDJDLQVWLPSHULDOLVP7KH FKDSWHU
IXUWKHUVFUXWLQL]HVKRZ&RQUDG¶VUHSUHVHQWDWLRQRIWKHIDLOXUHRIWKHZKLWHWUDGHUV
DQG WKH GLVFRXUVH RI SURJUHVV V\PEROL]HV WKH H[SORLWDWLYH DQG PDQLSXODWLYH
WHQGHQFLHVRILPSHULDOVHWXS,QDGGLWLRQWKHFKDSWHULQVSHFWVKRZ&RQUDGVKRZV
WKH XQPDVNHG IDFHV RI WKH QHJRWLDWRUV RI WKH KHJHPRQ\ ,W H[SORUHV &RQUDG¶V
DSSUHFLDWLRQ RI WKH VXEWOH ERQG EHWZHHQ WKH QRQZKLWH SHRSOH DQG WKHLU
VXUURXQGLQJ QDWXUH $QG ILQDOO\ WKH FKDSWHU H[DPLQHV LI &RQUDG JLYHV DGHTXDWH
VSDFH DQGUHSUHVHQWDWLRQWRWKHQDWLYHVLQKLVWH[WVE\ JLYLQJWKHPWKHSRZHUWR
H[SUHVV WKHPVHOYHV 6LQFH WKH VWXG\ RI WKH LQWHUIDFH RI WKH WZR UDFHV DQG WKH
KLVWRU\ RI WKH IRUPHUO\ FRORQL]HG QDWLRQV DUH WKH HVVHQWLDO IHDWXUHV RI
SRVWFRORQLDOLVP WKHUHIRUH &RQUDG¶V DWWLWXGH WRZDUGV FRORQL]DWLRQ RI $IULFD DQG
RWKHU0DOD\DQ,VODQGVKDVEHHQDQDO\]HGZLWKWKHKHOSRISRVWFRORQLDOWKHRU\
&RQUDG OLYHG LQ DQ HUD RI LPSHULDOLVP WKH HUD ZKHQ WKH SLOODJH RI WKH
$IULFDQ LYRU\ ODQGVFDSH DQG FXOWXUH KDG DOUHDG\ EHJXQ ,Q WKH DJH RI D IXOO\
EORVVRPHGLPSHULDOLVPDQGOLYLQJDVKHZDVLQDQDOLHQFRXQWU\&RQUDGGDUHVWR
DWWDFN WKH KHJHPRQ\ DQG HQGHDYRXUV WR VFUDWFK WKH RSDTXH DQG XQIDWKRPDEOH
GHSRVLWV RI GDUNQHVV RI KXPDQ FRYHWRXVQHVV YLFLRXVQHVV DQG FDOORXVQHVV E\
UHYHDOLQJWKHLOOHIIHFWVRIZKLWHLPSHULDOLVP2QHPXVWJLYHFUHGLWWR&RQUDGIRU
UDLVLQJ D IHZ VHDUFKLQJ TXHVWLRQV DERXW WKH YDOLGDWLRQ RI WKH LPSHULDOLVW
SKLORVRSK\ +H DFFRPSOLVKHV WKH QHHG WR XQPDVN EHIRUH WKH PDVVHV RI (XURSH
WKHLQDXWKHQWLFLW\RIWKH P\WKVDQGGRPLQDWLQJGLVFRXUVHV&RQUDGLQILOWUDWHVWKH
EDUULFDGHRISURSDJDQGDVHWXSEHWZHHQWKH:HVWDQGWKHFRORQLHVDQGEULQJVRXW
WKHMX[WDSRVLWLRQEHWZHHQWKHSUHYDOHQWSDUDEOHVRIWKHSURIHVVHGVXSHULRUUDFHDQG
WKHDFWXDOLW\RIWKHFRORQLHV+HH[SRVHV³WKHFULPLQDOLW\RILQHIILFLHQF\DQGSXUH
VHOILVKQHVV ZKHQ WDONLQJ RI WKH FLYLOL]LQJ ZRUNV´ &RQUDG &RQUDG¶V ZRUNV
SURGXFH DQLQIOXHQWLDOFULWLTXHRILPSHULDOLVWGRFWULQHVWKDWDUHGLUHFWHGDJDLQVWD
OHVVHUFXOWXUH&RQUDG¶VQRYHOVVHHPWRLQYLWHWKH³UHDGHUVWRVFUXWLQL]HWKHHWKLFDO
IRXQGDWLRQVRIWKHFLYLOL]DWLRQRIH[SDQVLRQLVWFDSLWDOLVPDQGHQJDJLQJWKHPLQD
FULWLFDOYLHZRILPSHULDOLVP¶VXUJHWRFRQTXHUWKHHDUWK´3DUU\+HKLQWVDWWKH
EL]DUUHQRUPVDQGVWDQGDUGVRIWKHVLQLVWHUQLJKWPDULVKDQGOXGLFURXVLPSHULDOLVW
VLWXDWLRQ LQ WKH QRQZKLWH ODQGV &RQUDG WDONV DERXW WKH FRORQLDOLVW VHWXS WKDW
GHPDQGVGHIHUHQFHWRWKHWKHRU\RIHYROXWLRQGHVLJQHGE\WKHUXOLQJDXWKRULW\+LV
ZULWLQJV UHIXVH OHJLWLPDF\ WR WKH LPSHULDOLVW WUDGH DQG HQWHU D JHQUH RI SURWHVW
DJDLQVWWKHKHJHPRQ\
&RQUDG¶V DQWDJRQLVWLF SHUFHSWLRQ RI WKH FRORQLDO H[SDQVLRQ LV VHHQ LQ KLV
DQWLLPSHULDOLVW DVVDXOW DW VRFLDO'DUZLQLVP RQ WKH JURXQGV RI VXSHULRU PDWHULDO
VWUHQJWK VHOI FRQJUDWXODWRU\ MLQJRLVP DQG PRUDO VXSHULRULW\ +H FHQVXUHV
FRORQLDOLVP IRU GHJUDGLQJ WKH FLYLOL]DWLRQ RI WKH FRORQL]HG %HFDXVH RI WKH
XQUHVWUDLQHG EHKDYLRXU RI WKH ZKLWH WUDGHUV WKH FRORQLDO VHWXS HPHUJHV DV
PRQVWURXV,QWKHXQLYHUVHRI&RQUDG¶VILFWLRQ³(XURSHGRHVQRWPDQLIHVWLWVHOIDV
WKHYLWDOIRUFHRISURJUHVVSURSRVHGE\LPSHULDOLVWSURSDJDQGDEXWDVWKHSDUHQWRI
GHJHQHUDWHSURJHQ\RIVRUGLGDPELWLRQVSXUVXHGE\FRUUXSWKXPDQDJHQWV3DUU\
&RQUDG¶VZRUNVUHJLVWHUKLVEHZLOGHUPHQWDQGLQGLJQDWLRQZLWKWKHV\VWHPRI
GRPLQDQFH ,QKLVQRYHOV&RQUDG JLYHVVSDFHWRWKH H[SORLWDWLRQRIWKH SK\VLFDO
DQG KXPDQ UHVRXUFHV WKH IODZHG GRFWULQHV RI WKH KHJHPRQ\ DQG WKH
OXGLFURXVQHVV RI WKH ZKLWHV +H QDUUDWHV OLYHV RI WKH ZLWKHUHG GLVHDVHG DQG WKH
VWDUYLQJQDWLYHVZLWKIXOOV\PSDWK\
&RQUDG SUHVHQWV WKH KDUVK WUXWK RI WKH FRORQLDO V\VWHP DQG HQWHUSULVH LQ
DOPRVWDOOKLVZRUNV$WWKHYHU\EHJLQQLQJRI+HDUWRI'DUNQHVVIRUH[DPSOHKH
VD\V³7KHFRQTXHVWRIWKHHDUWKZKLFKPRVWO\PHDQVWKHWDNLQJLWDZD\IURPWKRVH
ZKR KDYH D GLIIHUHQW FRPSOH[LRQ RU VOLJKWO\ IODWWHU QRVHV WKDQ RXUVHOYHV LV QRW D
SUHWW\ WKLQJ ZKHQ \RX ORRN LQWR LW WRR PXFK´ DQG WKXV SURYHV KLPVHOI WR EH D
SURELQJ DQWLLPSHULDOLVW +2' ,Q WKLV QRYHO &RQUDG UHYHDOV WKH
ZRUWKOHVVQHVVRIWKHUHILQLQJDQGHQOLJKWHQLQJLQWHQWLRQVRIWKHZKLWHVWKURXJKWKH
VWDUN LPDJHV RI WKH PDQRIZDU WKH G\LQJ QDWLYHV WKH URWWLQJ UDYLQHV DQG RWKHU
GHFD\LQJ VLJQV RI WKH VXSHULRU FLYLOL]DWLRQ &RQUDG VSOLQWHUV WKH EHQHYROHQW
ZRUOGYLHZRIFRORQLDOLVPDQGDOVRH[SRVHVWKHXQSOHDVDQWWUXWKVRIWKHKHJHPRQ\
7KHIROORZLQJWKUHHSDUDJUDSKVEULHIO\VSHOORXWWKHYLHZVRIWKHFULWLFVDERXWWKH
ZRUNVRI&RQUDGDQGWKHQOHDGWRWKHGLVFXVVLRQRIWKHSRVWFRORQLDOWKHRU\
&RQUDG¶V DQWLLPSHULDOLVW VWDQFH LV UHFRJQLVHG E\ D YDULHW\ RI FULWLFV +XQW
+DZNLQV LQ KLV HVVD\ ³&RQUDG¶V &ULWLTXH RI ,PSHULDOLVP LQ +HDUW RI 'DUNQHVV´
KDVREVHUYHGWKDWLQDOPRVWDOOKLVQRYHOV&RQUDGFRQGHPQVLPSHULDOLVPZKHWKHU
%ULWLVK RU 1RQ%ULWLVK )UDQFHV % 6LQJK VXUYH\V WKDW RQ WKH RQH KDQG +HDUW RI
'DUNQHVVDVVRFLDWHV$IULFDQVZLWKVXSHUQDWXUDOHYLODQGRQWKHRWKHUWKHVWRU\LVDQ
H[DPSOHRIDGLVWLQJXLVKHGZRUNWKDWLPSHDFKHVFRORQLDOLVP6DUYDQLQKLVHVVD\
FRQFOXGHV ³&RQUDG ZDV QRW HQWLUHO\ LPPXQH WR WKH LQIHFWLRQ RI WKH EHOLHIV DQG
DWWLWXGHVRIKLVDJHEXWKHZDVDKHDGRIPRVWLQWU\LQJWREUHDNIUHH´6DUYDQ
6WDSHTXRWHV('0RUHOOHDGHURIWKH&RQJR5HIRUP$VVRFLDWLRQZKRVWDWHGWKDW
+HDUWRI'DUNQHVVZDV³WKHPRVWSRZHUIXOWKLQJHYHUZULWWHQRQWKHVXEMHFW´6WDSH
&RQUDG ULVHV DERYH WKH LQKHULWDQFH RI UDFLVW IUDPHZRUN IURP KLV DGRSWHG
FRXQWU\ E\ GHVFULELQJ WKH GLUHFW H[SHULHQFH RI WKH $IULFDQV +H FDOOV /RQGRQ D
³ZKLWHG VHSXOFKHU´ ZKHUH WKH ZKLWH FRORXU VWDQGV IRU VSLULWXDO GHDWK RI LWV
LQKDELWDQWV +2' +H WDNHV WKH UHDGHU WR WKH FRORQLHV DQG VKRZV WKDW WKH
LQWHQWLRQ RI WKH FRORQLDO VHWXS ZDV RQO\ WR JDWKHU ZHDOWK DQG UHWXUQ KRPH ZHOO
HTXLSSHG IRU D FRPIRUWDEOH OLIH &RQUDG¶V SXUSRVH VHHPV WR VWUXJJOH IRU WKH
OLEHUDWLRQRIWKHFRORQL]HG
&RQUDGH[WHQGVWKHGHSLFWLRQRIWKHIDFDGHEHKLQGWKHZKLWHPDQ¶VEXUGHQLQ
KLVRWKHUQRYHOVWRR+HEULQJVRXWWKHDYDULFLRXVQHVVDQGYLROHQFHEXULHGGHHSLQ
WKHGDUNKHDUWVRIWKHZKLWHSHRSOHZKRGRPLQDWHWKHQRQZKLWH&RQUDGFRQIURQWV
KLV RZQ UDFH DQG LWV VXSHULRULW\ LQ RUGHU WR VXSSRUW WKH 2WKHUV 0F/DXFKODQ LV
FRQYLQFHG WKDW WKH ILUVW WZR QRYHOV RI &RQUDG ³LQFOXGH WKH IXWLOLW\ RI VHHNLQJ
KDSSLQHVV WKURXJK PDWHULDO ZHDOWK RU WKURXJK DGKHUHQFH WR WKH QRQYDOXHV RI
VXSSRVHGµFLYLOL]DWLRQ¶PRUDOLVRODWLRQDQGFRUUXSWLRQWKURXJKWKHGHEDVHPHQWRI
WUXO\ FLYLOL]HG DQG KXPDQ VWDQGDUGV RI KRQRXU DQG UHFWLWXGH DQG WKH WUDJLF
WHQGHQF\RIKXPDQEHLQJVWRWU\WROLYHE\DQGZLWKLQLOOXVLRQV´0F/DXFKODQ
$QRWKHU FULWLF 6FKZDU] DOVR EHOLHYHV WKDW ³7KHVH ILUVW QRYHOV LQWURGXFH WKH
HVVHQWLDO&RQUDGWKHPHWKDWPDQQHFHVVDULO\OLYHVLQDZRUOGRIKLVRZQLOOXVLRQV
(DFK RI WKH PDMRU FKDUDFWHUV FUHDWHV QDUUDWLYHV RI WKH IXWXUH LQ ZKLFK KH RU VKH
EHOLHYHV 7KH QRYHOV WUDFH $OPD\HU¶V DQG :LOOHPV¶ UHVSRQVH WR WKH GHVWUXFWLRQ RI
WKH SXWDWLYH IXWXUH WKDW HDFK PDQ LPDJLQHV WR NHHS KLPVHOI JRLQJ´ 6FKZDU] $FFRUGLQJWR:DWWVWKHILUVWWZRQRYHOVRI&RQUDGDUHOLQNHGWRRQHDQRWKHU³ZLWK
WKHWKHPHRIWUHDFKHU\RIPDQWRPDQFODVVWRFODVVDQGUDFHWRUDFH²HQWDLOHGE\
WKHSXUVXLWRIWKHµPDWHULDOLQWHUHVWV¶´:DWWV
7KHDIRUHVDLGFULWLFVKDYHYLHZHG+HDUWRI'DUNQHVV$OPD\HU¶V)ROO\DQG
$Q2XWFDVWRIWKH,VODQGVDVZRUNVZKLFKGHQRXQFHWKHPDWHULDOLQWHUHVWVRIWKH
ZKLWHWUDGHUV6LPLODUO\-DPHV(0LOOHU-UDQG-+6WDSHSHUFHLYH/RUG-LPDQG
7KH 1LJJHU RI WKH µ1DUFLVVXV¶ UHVSHFWLYHO\ /HR TXRWHV -DPHV ( 0LOOHU-U ZKR
³UHDGV 7KH 1LJJHU DV D OHVVRQ LQ VRFLDO FRPPXQLW\ DQG FRKHVLRQ OHDUQHG E\ WKH
FUHZ´/HR$ERXW/RUG-LP-+6WDSHVD\V³:LGHO\FRQVLGHUHGDNH\ZRUN
/RUG -LP XQIOLQFKLQJO\ FKDOOHQJHV ODWH QLQHWHHQWKFHQWXU\ PRGHV RI SHUFHSWLRQ
DQG OLWHUDU\ UHSUHVHQWDWLRQ´ 6WDSH &RQUDG VKRZV WR WKH UHDGHUV WKDW LQ DQ
LPSHULDOVHWWLQJWKHFRQTXHUHGUHJLRQVWROHUDWHWKHVWDLQRIDEVXUGLWLHVRIWKHUXOLQJ
PRQDUFK\ GXULQJ DQG DIWHU WKH FRORQLDO DJHQWV KDYH SK\VLFDOO\ OHIW WKH HDVWHUQ
ODQGV7KH:HVWLVWKHK\SRWKHWLFDOVSULQJRIOLIHDQGWKHLPSHULDODJHQWVSRVVHVV
WKHULJKWWRFRPSUHKHQGDQGWUHDWWKHFRQTXHUHGZRUOGDVWKH\ZLVKWRZKLOHWKH
(DVWGRHVQRWKDYHDKLVWRU\RUDFXOWXUHWRERDVWRI
/RRNLQJ DW WKH ZRUNV RI &RQUDG WKURXJK WKH SRVWFRORQLDO IUDPH KHOSV WR
LQYHVWLJDWH KRZ &RQUDG SLFWXUHV ³WKH (XURFHQWULF XQLYHUVDOLVP ZKLFK WDNHV IRU
JUDQWHGERWKWKHVXSHULRULW\RIZKDWLV(XURSHDQRU:HVWHUQDQGWKHLQIHULRULW\RI
ZKDWLVQRW´%DUU\7KHLQWHUIDFHEHWZHHQWKHZKLWHVDQGWKHQRQZKLWHVLV
FKDUDFWHULVHG E\ DQ LQHYLWDEOH DQG UHOHQWOHVV HQWDQJOLQJ EHWZHHQ WKH WZR UDFHV.
7KLV MRVWOLQJ RI WKH WZR FRORXUV DQG UDFHV LQYROYHV GLIIHUHQFHV EHWZHHQ WKH
FXVWRPV RI WKH QDWLYHV DQG WKH RVWHQVLEOH PDLQVWUHDP FXOWXUH 7KH IULFWLRQDO
UHODWLRQVKLSEHWZHHQWKHZKLWHVDQGWKHQRQZKLWHVLVSHUVLVWHQWO\GHP\VWLILHGDQG
H[SRVHG 3RVWFRORQLDO WKHRU\ SUREHV LQWR WKH OLWHUDWXUH WKDW GHDOV ZLWK ³SHRSOHV
DQG &8/785(6 RI ODQGV ZKLFK KDYH HPHUJHG IURP FRORQLDO UXOH´ +DZWKRUQ
3RVWFRORQLDOLVP VKRZV WKH PDQLSXODWLYH WHPSHUDPHQW RI WKH VXSHULRU UDFH
WRZDUGVWKHPDUJLQDO $VDSRVWFRORQLDOZULWHU&RQUDG¶VGHSLFWLRQRIWKH QDWLYHV
KHOSVWKHUHDGHUWRUHH[DPLQHDQGWRUHFUHDWHWKHJHQXLQHQHVVRIWKHLUH[LVWHQFH
3RVWFRORQLDO OLWHUDWXUH VFUXWLQL]HV WKH VRFLDO DQG FXOWXUDO SURFHHGLQJV WKDW
KDYH WDNHQ SODFH LQ WKH QRQZKLWH ODQGV GXULQJ DQG DIWHU WKH (XURSHDQ
DVFHQGDQF\7KHVDPHYLHZLVH[SUHVVHGE\/HHOD*DQGKLLQ3RVWFRORQLDO7KHRU\
ZKHUHVKHHOXFLGDWHVWKDWSRVWFRORQLDOLVPUHFROOHFWVDQGFULWLFDOO\FURVVH[DPLQHV
WKHFRORQLDOKLVWRU\3RVWFRORQLDOOLWHUDWXUHVWXGLHVWKHGLVWUHVVRIWKHLQVLJQLILFDQW
DQGWKHLPSDFWRIFRORQL]DWLRQRQWKHFRORQLHV&RQUDG¶VZRUNVEHFRPHDSDUWRI
WKH SRVWFRORQLDO JHQUH ZKHQ KH GHSLFWV KLV VKHHU GLVJXVW DQG GLVWDVWH IRU WKH
JHRJUDSKLFDOH[SORUDWLRQXQGHUWDNHQE\WKHZKLWHWUDGHUV+LVWH[WVWDONDERXWWKH
XQVRXQG VDYDJH LQVHQVLWLYH DQG UDSDFLRXV PHWKRGV RI WKH FRORQL]HUV &RQUDG
H[SRVHV WKH PRWLYH RI ILQGLQJ WUHDVXUH DQG DFFXPXODWLQJ ZHDOWK EHKLQG WKH
PRYHPHQW RI WKH ZKLWH UDFH WR WKH QRQZKLWH ODQGV 7KH DVSLUDWLRQ RI WKH ZKLWH
WUDGHUV LV WR FRQWURO WKH QDWLYHV WKHLU FXOWXUH DQG HFRQRP\ DQG ILQDOO\ WR
VXEMXJDWHWKHRFFXSLHGSHRSOHE\LPSRVLQJWKHLURZQDXWKRULW\LGHDVSKLORVRSK\
FRQYLFWLRQVSROLFLHVDQGOLIHVW\OH
&RQUDG¶V ZRUNV SXEOLFL]H KLV VFUXWLQ\ RI WKH FRUUXSWLRQ SUHYDOHQW LQ WKH
LPSHULDO YHQWXUH DQG WKH GHILFLHQF\ RI LWV FRORQLDO VWDQGDUGV +LV FRQGHPQDWLRQ
DQG GLVDSSURYDO RI WKH FRORQLDO XQGHUWDNLQJ DQG WKH LPSDUWLDO GHOLQHDWLRQ RI WKH
GLVHQIUDQFKLVHG LQ WKH FRORQLHV FDWHJRUL]HV KLP DPRQJ WKH ILUVW SRVWFRORQLDO
ZULWHUVDWZRUNLQWKH(QJOLVKODQJXDJH,QWKHILUVWWZRGHFDGHVRIWKHWZHQWLHWK
FHQWXU\ DQG VLQFH WKH HPHUJHQFH RI WKH SRVWFRORQLDO OLWHUDU\ WKHRU\ &RQUDG¶V
ILFWLRQKDVDWWDLQHGDQRYHODQGQRWHZRUWK\UDWLQJLQOLWHUDU\GLVFXVVLRQV&RQUDG
GHILHV WKH (XURFHQWULFLW\ DQG XQLYHUVDOLVP RI FRORQLDO DVVXPSWLRQV DQG
SUHVXSSRVLWLRQV
&RQUDG¶V F\QLFLVP ZLWK LPSHULDOLVP FRXOG EH VHHQ HPHUJLQJ IURP KLV
SHUVRQDO H[SHULHQFHV LQ 3RODQG +LV VFHSWLFLVP LV EDVHG DOVR RQ WKH IDFW WKDW KLV
SDUHQWVZHUHH[LOHGE\WKH5XVVLDQDXWKRULWLHV:KHQKLVIDWKHUGLHG&RQUDGZDV
RQO\HOHYHQ\HDUVROGDQGVRWKH\RXQJ&RQUDGFRXOGQRWXQGHUVWDQGWKHSROLWLFDO
VLWXDWLRQ LQ 3RODQG %XW EHFDXVH RI KLV SDUHQWV¶ H[SHULHQFH KH WRR WKRXJK
XQFRQVFLRXVO\ PD\ KDYH LQKHULWHG DQWDJRQLVWLF DWWLWXGH WRZDUGV WKH LPSHULDO
SRZHUV/HRREVHUYHV
&RQUDG¶VHDUO\FKLOGKRRGLVRODWHGLQDQHQHP\FRXQWU\FXWRIIIURP
\RXQJFRPSDQLRQVWKURZQLQWRWKHH[FOXVLYHFRPSDQ\RIWZRSDUHQWV
G\LQJYLVLEO\EHIRUHKLVH\HVH[SRVHGKLPWRDEQRUPDOWHQVLRQ,QWKH
LPSUHVVLRQDEOH \HDUV EHIRUH KH FDPH WR VSHFXODWH DQG SKLORVRSKL]H
DERXWWKHQDWXUHRIWKLQJV&RQUDGLQWLPDWHO\DEVRUEHGWKHDWWLWXGHRI
KLVSDUHQWVKLV IDWKHU¶V UHEHOOLRXVODVKLQJRXWDJDLQVWRSSUHVVLRQKLV
PRWKHU¶VXQFRPSODLQLQJDFFHSWDQFHDQGHQGXUDQFH/HR
&RQUDG¶V OLIH LQ (QJODQG DOVR EURXJKW KLP FORVH WR WKH VXSSUHVVLRQ RI WKH QRQ
ZKLWHVXQGHUWKH \RNHRIWKHW\UDQQLFDOHSRFKRILPSHULDOLVP6LQFH&RQUDGZDV
HPSOR\HGIRUWUDGHDVD0DVWHULQWKH%ULWLVK0HUFKDQW0DULQHKHKDGILUVWKDQG
H[SHULHQFH RI WKH H[LVWLQJ ZRUNLQJV RI WKH LPSHULDO VHWXS LQ WKH 0DOD\
$UFKLSHODJR %HLQJ DQ DJHQW RI WKH SURIHVVHG UDFLDOO\ VXSHULRU ZKLWH ZRUOG D
ILUVWKDQGZLWQHVVRIWKHLQMXULHVWKDWWKHFRORQLDOUXOHFRPPLWWHGRQWKHFRORQL]HG
DQG DV D FLWL]HQ RI VXEMXJDWHG 3RODQG &RQUDG JDYH QDUUDWLYH VSDFH WR WKH
XQFHUWDLQW\ DQG WKH IDOOLELOLW\ RI LPSHULDO YDOXHV LQ KLV ZRUNV 7R UHYHDO WKH
LQWDQJLEOH DQG P\VWHULRXV QDWXUH RI WKH LPSHUIHFW DQG XQUHOLDEOH PRUDOV DQG WR
FDSWXUHWKHPZLWKLQDILFWLRQDOVFDIIROGEHFDPH&RQUDG¶VPRVWIHUYHQWFKRUH
:LWKPXFKVHQVLWLYLW\&RQUDGGHSLFWVWKHQHYHUHQGLQJEUXWDOLW\FRPPLWWHG
E\ WKH LPSHULDO IRUFHV RQ WKH QDWLYHV +LV WH[WV LQYLWH WKH UHDGHUV WR LQVSHFW WKH
PRUDO LPSUDFWLFDOLWLHV RI WKH H[SDQVLRQLVW SROLFLHV RI WKH RVWHQVLEOH FLYLOL]DWLRQ
,QWKH¶V&RQUDGKDGKLPVHOIMRXUQH\HGLQWRWKH&RQJR DQGKLV H[SHULHQFHV
IRUPHG WKH IRXQGDWLRQ RI +HDUW RI 'DUNQHVV +H QDUUDWHV WKH VODXJKWHU WKH
EXWFKHU\WKHGLVRUJDQL]DWLRQDQGWKHGXSOLFLW\WKDWKHFDPHDFURVV&RQUDGIRXQG
WKH GLVFUHSDQF\ EHWZHHQ WKH SRSXODU LGLRP RI FRORQLDO DXWKRULW\ DQG LWV FDOORXV
WUXWK GXULQJ KLV MRXUQH\ WR WKH &RQJR +H REVHUYHG WKH MRVWOLQJ IRU SOXQGHU DQG
GHSLFWVWKHVDPHLQKLVZRUN+HGHVFULEHVKRZDQGZK\WKHFRORQLDODJHQWVDUH
QRWDEOHWRPDNHDQ\UDLOZD\VDQGWKHURDGV\VWHPLQWKHQRQZKLWHODQGV
,Q+HDUWRI'DUNQHVVLWLVLQWHUHVWLQJWRORRNDW&RQUDG¶VIDYRXULWHQDUUDWRU
0DUORZZKRDVDFKLOGORRNVDWWKHPDSRIWKHZRUOGDQGILQGVEODQNVSDFHV
³1RZZKHQ,ZDVDOLWWOHFKDS,KDGDSDVVLRQIRUPDSV,ZRXOGORRN
IRUKRXUVDW6RXWK$PHULFDRU$IULFDRU$XVWUDOLDDQGORVHP\VHOILQ
WKHJORULHVRIH[SORUDWLRQ$WWKDWWLPHWKHUHZHUHPDQ\EODQNVSDFHV
RQWKHHDUWKDQGZKHQ,VDZRQHWKDWORRNHGSDUWLFXODUO\LQYLWLQJRQD
PDSEXWWKH\DOOORRNWKDW,ZRXOGSXWP\ILQJHURQLWDQGVD\ZKHQ
,JURZXS,ZLOOJRWKHUH´+2'
$ FKLOG JURZLQJ XS LQ WKH LPSHULDO VHWXS LV SHUKDSV ILOOHG ZLWK WKH QRWLRQV RI
H[SORUDWLRQDQGLQYDVLRQIURPKLVFKLOGKRRG$QGZKHQWKHDGXOW0DUORZJRHVWR
WKHVHEODQNVSDFHVKHILQGVWKDWGXHWRWKHLQWHUYHQWLRQRIWKHZKLWHVWKHSK\VLFDO
EODQNQHVVKDVWXUQHGLQWRPRUDOGDUNQHVV+HILQGVWKDW$IULFD³ZDVQRW DEODQN
VSDFH DQ\ PRUH ,W KDG JRW ILOOHG VLQFH P\ ER\KRRG ZLWK ULYHUV DQG ODNHV DQG
QDPHV,WKDGFHDVHGWREHDEODQNVSDFHRIGHOLJKWIXOP\VWHU\±DZKLWHSDWFKIRU
DER\WRGUHDPJORULRXVO\RYHU,WKDGEHFRPHDSODFHRIGDUNQHVV´+2',W
ZDVQRORQJHUWKHSXUVXLWRIWKHGDUNQHVVRIWKHFRQWLQHQWEXWRIWKHGDUNQHVVRI
WKH KHDUW RI WKH ZKLWHV 7KURXJK KLV QDUUDWRU &RQUDG VKRZV WKDW SKUDVHV OLNH
µZKLWH PDQ¶V EXUGHQ¶ DQG µFLYLOL]LQJ PLVVLRQ¶ FRQFHDOHG WKH JUHHG RI WHUULWRULDO
H[SDQVLRQDQGSK\VLFDOH[SORLWDWLRQ
,Q +HDUW RI 'DUNQHVV &RQUDG VKRZV KRZ WKH DYDULFLRXV PLVVLRQ RI
LPSHULDOLVP GRPLQDWHV E\ VWLIOLQJ WKH KXPDQLW\ RI DQRWKHU UDFH ,Q 0DUORZ¶V
MRXUQH\XSWKHULYHU&RQJRKHHQXPHUDWHVWKHGDPDJHVWKDWLPSHULDOLVPKDVGRQH
WR WKH ODQG DQG LWV LQKDELWDQWV DQG DOVR GHPRQVWUDWHV LWV GHILFLHQF\ 0DUORZ
UHSHDWHGO\UHIHUVWRKLVXSULYHUMRXUQH\DVDWULSGRZQWRKHOO2QKLVYR\DJHRQ
WKH)UHQFKVWHDPHU0DUORZVHHVWKHXQMXVWLILDEOHIHURFLW\RILPSHULDOLVP2QWKH
FRDVWV RI WKH ULYHU &RQJR WKH VWHDPHU VWDUWV ILULQJ K\VWHULFDOO\ LQWR WKH EXVKHV
ZKHUHWKHQDWLYHVFDQQRWEHVHHQEXWDUHEHOLHYHGWREHKLGLQJ
³,Q WKH HPSW\ LPPHQVLW\ RI HDUWK VN\ DQG ZDWHU WKHUH VKH ZDV
LQFRPSUHKHQVLEOH ILULQJ LQWR D FRQWLQHQW 7KHUH ZDV D WRXFK RI
LQVDQLW\LQWKHSURFHHGLQJDVHQVHRIOXJXEULRXVGUROOHU\LQWKHVLJKW
DQGLWZDVQRWGLVVLSDWHGE\VRPHERG\RQERDUGDVVXULQJPHHDUQHVWO\
WKHUHZDVDFDPSRIQDWLYHV±KHFDOOHGWKHPHQHPLHV±KLGGHQRXWRI
VLJKWVRPHZKHUH´+2'
0DUORZ¶VQDUUDWLRQRIWKHXQMXVWSURFHHGLQJVRILPSHULDOLVPUHYHDOVWKHDXWKRU¶V
UHVHQWPHQWDQGIXU\DJDLQVWWKHFRORQLDOVHWXS&RQUDGH[SUHVVHVV\PSDWK\ZKHQ
KHFRPHVDFURVVWKHJULHYDQFHLQIOLFWHGRQIRUHLJQSRSXODWLRQVIRUWKHIXOILOPHQW
RI WKH XQMXVWLILHG GUHDPV RI WKH UXOLQJ UDFHV 7KH PHQGDFLW\ RI WKH ZKLWHV KDV
HDWHQLQWRWKHFUHHGFXOWXUHDQGFRQYLFWLRQVRIWKHROGRUGHURIWKLQJVLQWKHQRQ
ZKLWH ODQGV &RQUDG KDV DWWDFNHG WHUULWRULDO DFTXLUHPHQW FDUULHG RXW RQ WKH
JURXQGV RI VWUHQJWK RI WKH ZKLWHV +H LV ³XQHDV\ DERXW IRUHLJQ UXOH RYHU
VXEMXJDWHGSHRSOH>DQG@RIIHQGHGE\WKHYXOJDUDQGVHOIFRQJUDWXODWRU\MLQJRLVP
ZKLFKIORXULVKHGLQWKHDJHRIFRORQLDOH[SDQVLRQ´3DUU\
/DWHUDWWKH)LUVW&RPSDQ\6WDWLRQ0DUORZZLWQHVVHVWKHGLVKHDUWHQLQJELWV
DQG SLHFHV RI FLYLOL]DWLRQ O\LQJ LQ WKH FRXQWU\VLGH WR UXVW DQG GHFD\ 7KH ILUVW
VWDWLRQVHHPHGOLNHDMXQN\DUGIRUWKHIODZHGLPSHULDOXQGHUWDNLQJ7KHQDUUDWLRQ
FRPHV DV D FRPPHQW XSRQ WKH PHDQLQJOHVVQHVV DQG YDQLW\ RI WKH FLYLOL]LQJ
SXUSRVHRIWKHZKLWHV,WUHYHDOVWKDWWKHGRPLQDWLRQRIWKHZKLWHVLVDGHVWUXFWLYH
FRPPDQG+HVD\V
³, FDPH XSRQ D ERLOHU ZDOORZLQJ LQ WKH JUDVV WKHQ IRXQG D SDWK
OHDGLQJ XS WKH KLOO ,W WXUQHG DVLGH IRU WKH ERXOGHUV DQG DOVR IRU DQ
XQGHUVL]HGUDLOZD\WUXFNO\LQJWKHUHRQLWVEDFNZLWKLWVZKHHOVLQWKH
DLU 2QH ZDV RII 7KH WKLQJ ORRNHG DV GHDG DV WKH FDUFDVV RI VRPH
DQLPDO , FDPH XSRQ PRUH SLHFHV RI GHFD\LQJ PDFKLQHU\ D VWDFN RI
UXVW\UDLOV´+2'
0DUORZ QRWLFHV D ERLOHU O\LQJ LQ WKH JUDVV DQG DQ XQXVHG UDLOZD\ FDU WKDW
UHVHPEOHV ³WKH FDUFDVV RI VRPH DQLPDO´ +2' +H REVHUYHV D VHULHV RI
H[SORVLRQVWKDWGLGQRWKLQJWRFKDQJHWKHURFNWKHRVWHQVLEOHZKLWHHQJLQHHUVDUH
DWWHPSWLQJ WR UHPRYH +H DOVR VHHV DQ ³DUWLILFLDO KROH´ WKH SXUSRVH RI ZKLFK KH
FDQQRWGLVFHUQ+2'7KHQWKHUHLVDUDYLQHILOOHGZLWKEURNHQGUDLQDJHSLSHV
0DUORZLVVWXQQHGE\WKHVHLPDJHVRIFKDRVDQGUHPDUNV³7KHZRUNZDVJRLQJ
RQ7KHZRUN´+2'&OHDUO\WKHVHVLJQVRIZDVWHDQGLQFRPSHWHQFHDUHQRW
ZKDW 0DUORZ DQWLFLSDWHG WR VHH XSRQ KLV DUULYDO 7KHVH UHGXQGDQW PDFKLQHV
V\PEROL]H QRW RQO\ WKH DEVROXWH GLVUHJDUG RI WKH FRPSDQ\ IRU PDNLQJ DQ\ UHDO
SURJUHVV LQ WKH &RQJR EXW DOVR WKH GLVRUJDQL]DWLRQ WKDW VWUXFWXUHV LWV GD\WRGD\
RSHUDWLRQV
$ OLWWOH IXUWKHU 0DUORZ FRPHV DFURVV D URZ RI VL[ QDWLYHV FRXSOHG WR RQH
DQRWKHUZLWKDQLURQFKDLQ$OOWKHVL[QRQZKLWHVKDYHLURQFROODUVLQWKHLUQHFNV
:KHQ D SRVWFRORQLDO UHDGHU H[DPLQHV WKH ZRQGHUIXOO\ FRPSUHKHQVLYH DQG
LQFUHGLEOH GHVFULSWLRQ RI WKH FKDLQHG DQG RSSUHVVHG QDWLYHV E\ WKH QDUUDWRU RQH
FDQQRWEXWEHOLHYH&RQUDGWREHDQDQWLLPSHULDOLVWZULWHU+HVD\V
³$VOLJKW FOLQNLQJEHKLQGPHPDGHPHWXUQP\ KHDG6L[EODFNPHQ
DGYDQFHG LQ D ILOH WRLOLQJ XS WKH SDWK 7KH\ ZDONHG HUHFW DQG VORZ
EDODQFLQJVPDOOEDVNHWVIXOORIHDUWKRQWKHLUKHDGVDQGWKHFOLQNNHSW
WLPH ZLWK WKHLU IRRWVWHSV %ODFN UDJV ZHUH ZRXQG URXQG WKHLU ORLQV
DQG WKH VKRUW HQGV EHKLQG ZDJJHG WR DQG IUR OLNH WDLOV , FRXOG VHH
HYHU\ULEWKHMRLQWVRIWKHLUOLPEVZHUHOLNHNQRWVLQDURSHHDFKKDG
DQ LURQ FROODU RQ KLV QHFN DQG DOO ZHUH FRQQHFWHG WRJHWKHU ZLWK D
FKDLQZKRVHELWVVZXQJEHWZHHQWKHPUK\WKPLFDOO\FOLQNLQJ$QRWKHU
UHSRUWIURPWKHFOLIIPDGHPHWKLQNVXGGHQO\RIWKDWVKLSRIZDU,KDG
VHHQ ILULQJ LQWR D FRQWLQHQW ,W ZDV WKH VDPH NLQG RI RPLQRXV YRLFH
EXWWKHVHFRXOGE\QRVWUHWFKRILPDJLQDWLRQEHFDOOHGHQHPLHV7KH\
ZHUH FDOOHG FULPLQDOV DQG WKH RXWUDJHG ODZ OLNH WKH EXUVWLQJ VKHOOV
KDG FRPH WR WKHP DQ LQVROXEOH P\VWHU\ IURP RYHU WKH VHD $OO WKHLU
PHDJUHEUHDVWVSDQWHGWRJHWKHUWKHYLROHQWO\GLODWHGQRVWULOVTXLYHUHG
WKHH\HVVWDUHGVWRQLO\XSKLOO7KH\SDVVHGZLWKLQVL[LQFKHVZLWKRXW
D JODQFH ZLWK WKDW FRPSOHWH GHDWKOLNH LQGLIIHUHQFH RI XQKDSS\
VDYDJHV´+2'
6XFK D GHVFULSWLRQ PDNHV WKH UHDGHU DZDUH RI WKH DWURFLRXV DQG WKH DSSDOOLQJ
FRQGLWLRQ RI WKH QDWLYHV XQGHU WKH \RNH RI LPSHULDOLVP 0DUORZ¶V WRQH EHFRPHV
LURQLF ZKHQ WRZDUGV WKH HQG RI WKLV SDVVDJH DIWHU ORRNLQJ DW WKH ZKLWH PDQ
OHDGLQJWKLVVPDOOSURFHVVLRQRIVL[PHQKHVD\V³%HKLQGWKLVUDZPDWWHURQHRI
WKH UHFODLPHG WKH SURGXFW RI WKH QHZ IRUFHV DW ZRUN VWUROOHG GHVSRQGHQWO\
FDUU\LQJ D ULIOH E\ LWV PLGGOH´ +2' +H IXUWKHU VD\V ³$IWHU DOO , DOVR ZDV
SDUW RI WKHVH KLJK DQG MXVW SURFHHGLQJV´ +2' 7KH SDVVDJH VKRZV DXWKRU¶V
XQHDVLQHVV DQG DJLWDWLRQ DW WKH XQMXVW SURFHHGLQJV RI WKH FRORQLDO VHWXS 6WDSH
VD\V³:KDWWKHRWKHU(XURSHDQVFKRRVHWRLJQRUH0DUORZREVHUYHVZLWKVDUGRQLF
LQGLJQDWLRQ´6WDSH
$QRWKHU XQSOHDVDQW YHUVLRQ RI WKH ZUHWFKHG FRQGLWLRQ RI WKH H[SORLWHG
QDWLYHV FRPHV ZKHQ D OLWWOH ODWHU 0DUORZ HQWHUV D JURYH RI WUHHV 0DUORZ FDOOV
WKLV SODFH D ³JORRP\ FLUFOH RI ,QIHUQR´ +2' +H ILQGV KHUH D JURXS RI
QDWLYHV ZKR DUH QR PRUH LQ WKH HPSOR\PHQW RI LPSHULDO IRUFHV %HFDXVH WKH\
FDQQRW SHUIRUP WKH VHUYLFHV DQ\ ORQJHU DQG DUH UHGXFHG WR WKH VKDSH RI JKRVWV
WKH\DUHDEDQGRQHGE\WKH&RPSDQ\0DUORZREVHUYHV
³%ODFNVKDSHVFURXFKHGOD\VDWEHWZHHQWKHWUHHVOHDQLQJDJDLQVWWKH
WUXQNVFOLQJLQJWRWKHHDUWKKDOIFRPLQJRXWKDOIHIIDFHGZLWKLQWKH
GLP OLJKW LQ DOO WKH DWWLWXGHV RI SDLQ DEDQGRQPHQW DQG GHVSDLU $QG WKLV ZDV WKH SODFH ZKHUH VRPH RI WKH KHOSHUV KDG ZLWKGUDZQ WR
GLH 7KH\ ZHUH G\LQJ VORZO\ ± LW ZDV YHU\ FOHDU 7KH\ ZHUH QRW
HQHPLHV WKH\ ZHUH QRW FULPLQDOV WKH\ ZHUH QRWKLQJ HDUWKO\ QRZ ±
QRWKLQJEXWEODFNVKDGRZVRIGLVHDVHDQGVWDUYDWLRQO\LQJFRQIXVHGO\
LQWKHJUHHQLVKJORRP%URXJKWIURPDOOWKHUHFHVVHVRIWKHFRDVWLQDOO
WKHOHJDOLW\RIWLPHFRQWUDFWVORVWLQXQFRQJHQLDOVXUURXQGLQJVIHGRQ
XQIDPLOLDU IRRG WKH\ VLFNHQHG EHFDPH LQHIILFLHQW DQG ZHUH WKHQ
DOORZHGWRFUDZODZD\DQGUHVW7KHVHPRULEXQGVKDSHVZHUHIUHHDV
DLU±DQGQHDUO\DVWKLQ´+2'
6XFK D SDVVDJH H[SRVHV WKDW EHKLQG WKH VPRNHVFUHHQ RI FLYLOL]DWLRQ DQG
EHQHYROHQW FRORQLDOLVP WKULYHV EDUEDULW\ H[SORLWDWLRQ GHDWK GLVHDVH DQG VORZ
H[WHUPLQDWLRQ 0DUORZ IHHOV SLW\ DW WKH FRQGLWLRQ RI WKH SHRSOH ZKR KDYH EHHQ
UHGXFHGWRWKHVWDWXVRIDQLPDOVDQG³EXQGOHVRIDFXWHDQJOHV´+2'7KHVH
SHRSOHDUHLURQLFDOO\VHHQWREHDVIUHHDVDLUIRUWKH\KDYHEHHQDEDQGRQHGE\WKH
ZKLWH PDVWHUV EHFDXVH WKH\ FDQ QR PRUH OHQG WKHLU ERGLHV WR WKH SURILWV RI WKH
&RPSDQ\
7RRQHRIWKHQDWLYHVLQWKLVGLVPDODQGGHKXPDQL]HGJURXS0DUORZRIIHUV
D ³JRRG 6ZHGH¶V VKLS¶V ELVFXLWV´ +2' 7KH QDWLYH FDQ RQO\ JUDVS LW LQ KLV
KDQGDVKHLVWRRZHDNWRHYHQEULQJLWWRKLVPRXWK7KHODWWHUWDNHVWKHELVFXLW
ZLWK D GHDWKOLNH LQGLIIHUHQFH ³QR RWKHU PRYHPHQW DQG QR RWKHU JODQFH´ +2'
7KH QDWLYH KDV ³D ELW RI ZKLWH ZRUVWHG URXQG KLV QHFN´ +2' 0DUORZ
SX]]OHVRYHULWVPHDQLQJDQGZRQGHUV³KHKDGWLHGDELWRIZKLWHZRUVWHGURXQG
KLVQHFN±:K\":KHUHGLGKHJHWLW":DVLWDEDGJH±DQRUQDPHQW±DFKDUP±D
SURSLWLDWRU\ DFW" :DV WKHUH DQ\ LGHD DW DOO FRQQHFWHG ZLWK LW" ,W ORRNHG VWDUWOLQJ
URXQG KLV QHFN WKLV ELW RI ZKLWH WKUHDG IURP EH\RQG WKH VHDV´ +2' 7KH
LQWHUURJDWRU\UHPDUNVOHDGWRYDULRXVLQWHUSUHWDWLRQVRQHRIZKLFKPD\V\PEROLVH
WKH&RPSDQ\¶VFROODULQJWKHQDWLYHVDQGWUHDWLQJWKHPOLNHDQLPDOV
,Q+HDUWRI'DUNQHVVWKHUHDGHUVXQHDUWKDQRULHQWDWLRQQRWRQO\UHJDUGLQJ
WKHGDUN$IULFDDQG.XUW]¶VGHFHLWIXOQHVVEXWLWDOVRWDONVDERXWWKHRPLQRXVGXOO
PRQRWRQRXV DQG GUHDU\ DWPRVSKHUH RI /RQGRQ 0DUORZ ILQGV /RQGRQ WR EH
JORRP\ DQG VKDGRZ\ DQG IHHOV WKDW RYHU WKLV GHDG FLW\ EURRGV D VLQLVWHU DQG
EDOHIXO PXUNLQHVV &RQUDG UHFRJQL]HV LPSHULDOLVP DV WKH PRVW EHVPLUFKHG
MXQFWXUH LQ WKH KLVWRU\ RI DQ\ FRXQWU\ ² GHYHORSLQJ RU GHYHORSHG 7KH OHDGLQJ
LPSHULDO FLW\ DQG WKH KXE RI FRORQLDO WUDGH WKH LQWHUVHFWLRQ WR WKH WUDIILF RI
LQGXVWULDOL]DWLRQDQGWKHFDSLWDOLVLWVHOIDKHDUWRIGDUNQHVV
7KH DLU ZDV GDUN DERYH *UDYHVHQG DQG IDUWKHU EDFN VWLOO VHHPHG
FRQGHQVHG LQWR D PRXUQIXO JORRP EURRGLQJ PRWLRQOHVV RYHU WKH
ELJJHVWDQGWKHJUHDWHVWWRZQRQHDUWK7KHRIILQJZDVEDUUHGE\D
EODFN EDQN RI FORXGV DQG WKH WUDQTXLO ZDWHUZD\ OHDGLQJ WR WKH
XWWHUPRVW HQGV RI WKH HDUWK IORZHG VRPEUH XQGHU DQ RYHUFDVW VN\ ±
VHHPHGWROHDGLQWRWKHKHDUWRIDQLPPHQVHGDUNQHVV+2'
6R LQVWHDG RI GHQRWLQJ ZKROHVRPHQHVV VSRWOHVVQHVV KLJK PHULW OXFLGLW\ DQG
JHQXLQHQHVV /RQGRQ LQ +HDUW RI 'DUNQHVV FRPHV WR VLJQLI\ GLVKRQHVW\
ZLFNHGQHVV PDOHYROHQFH EHZLOGHUPHQW GHFHLW DQG IDOVHKRRG )RU 0DUORZ
/RQGRQ UHVHPEOHV D ZKLWH JUDYH WKDW JLYHV ELUWK WR DQ DYDULFLRXV DQG UDYHQRXV
FRORQLDOLVP 7KH ZKLWHQHVV RI D PDUEOH ILUHSODFH LQ WKH RIILFH RI /RQGRQ LV DV
FROGDVGHDWKDQGGHOXVLRQ,QVKRUW.XUW]¶VVNHWFKRIDEOLQGIROGZRPDQFDUU\LQJ
DWRUFKWKDWFDVWVDWKUHDWHQLQJOLJKWRQKHUIDFHVKRZV(XURSH¶VWUDGLWLRQDOILJXUH
RIMXVWLFHWUDQVIRUPHGLQWRDQLPDJHRIXQPHULWHG%ULWDLQ¶VLQFXUVLRQVLQWR$IULFD
7KH GHVFULSWLRQ RI YDULRXV VFHQHV RI H[SORLWDWLRQ DQG GHDWK LQ +HDUW RI
'DUNQHVV VKRZV WKH DXWKRU¶V VKHHU GLVJXVW DW WKH JHRJUDSKLFDO H[SORUDWLRQ
XQGHUWDNHQIRUWKHGHYHORSPHQWRIWKHZKLWHUDFH+HH[SRVHVWKHHYLOVRILPSHULDO
KHJHPRQ\ &RQUDG EULQJV RXW WKH UHDOLW\ RI WKH RVWHQWDWLRXV DQG KLJKO\ HJRLVWLF
ZKLWHLPSHULDODJHQWV7KHDFWXDOPRWLIRIWKHLPSHULDOLVWVLQWKHQRQZKLWHODQGV
LVWRHDUQKXJHSURILWVWRVWDPSWKHODQGRIWKH2WKHUVDVWKHLURZQDQGWRFRQWURO
LWV SHRSOH LWV FXOWXUH DQG LWV HFRQRP\ 7KH LPSHULDOLVWV GHVLJQ WR VXEMXJDWH WKH
2WKHUV WR WKHLU FRPPDQG DXWKRULW\ WKHLU LGHDV DQG WKHLU SROLFLHV +HDUW RI
'DUNQHVV VKRZV WKDW FRORQLDOLVP ZDV D VFUDPEOH IRU ODQG LQ $IULFD DQG WKH
GDUNQHVVWKDWWKHZKLWHSHRSOHWU\WRILQGLQWKHQRQZKLWHVLVDFWXDOO\SUHVHQWLQ
WKHP+LVWH[WLV³DUHEXNHWRHPSLUHEXLOGHUVDQGWREHOLHYHUVLQWKHGXUDELOLW\RI
FLYLOL]DWLRQLWLQYRNHVDKXPLOLDWLQJFKURQRORJLFDOSHUVSHFWLYHDQGLWPD\MROWWKH
UHDGHULQWRFLUFXPVSHFWLRQ´6WDSH
&RQUDG GHVFULEHV WKH EHJLQQLQJ RI DQG WKH HIIHFWV RI FRORQLDOLVP LQ $Q
2XWFDVWRIWKH,VODQGV7KHVSUHDGRIWKHVPRNH IURPWKHVWHDPERDWVVLJQDOVWKH
EHJLQQLQJ RI WKH FRQTXHULQJ RI WKH RWKHU ODQGV ³WKH KDQG RI WKH HQJLQHHU WRUH
GRZQWKHYHLORIWKHWHUULEOHEHDXW\LQRUGHUWKDWJUHHG\DQGIDLWKOHVVODQGOXEEHUV
PLJKWSRFNHWGLYLGHQGV´$,27KHKHDUWVRIWKHPHQZKRZHUHRQFHIDLWKIXO
DQGFRQWHQGHGVHUYDQWVRIWKHVHDFKDQJHGDQGWKH\GHVWUR\HGWKHP\VWHU\RIWKH
DOLHQODQGZLWK³ILUHDQGLURQ´$2,7KHVHPHQRIWKHVHDKDYHQRZEHFRPH
³DFDOFXODWLQJFURZGRIFROGDQGH[DFWLQJPDVWHUV´$,2&RQUDGVKRZVWKDW
WKH KLHUDUFKLFDO LPSHULDO VHWXS LV LQFRPSDWLEOH ZLWK WKH WUDGLWLRQDO RUGHU RI WKH
FRUQHUHG SHRSOH 7KH PRGHUQ FRORQLDOLVP ZLWK LWV PLOLWDU\ DQG WHFKQRORJLFDO
SURZHVV DLPV WR H[SORLW WKH VXERUGLQDWH SODFHV ,Q WKH ZRUNV RI &RQUDG WR XVH
1DQG\¶VZRUGVLWEHFRPHV³DSSDUHQWWKDWJHQRFLGHVHFRGLVDVWHUVDQGHWKQRFLGHV
DUHEXWWKHXQGHUVLGHRIFRUUXSWVFLHQFHVDQGSV\FKRSDWKLFWHFKQRORJLHVZHGGHGWR
QHZVHFXODUKLHUDUFKLHVZKLFKKDYHUHGXFHGPDMRUFLYLOL]DWLRQVWRWKHVWDWXVRID
VHWRIHPSW\ULWXDOV´1DQG\[
&RQUDGQDUUDWHVWKHZUHWFKHGQHVVRIWKH&RQJROHVHDQGWKH0DOD\DQVXQGHU
WKH GRPLQDWLRQ DQG LQVDWLDEOH H[SDQVLRQLVW SROLFLHV RI LPSHULDOLVP +H VKRZV D
IDFWXDO SRUWUDLW RI WKH UXLQHG DQG GHKXPDQL]HG $IULFD DQG WKH 0DOD\DQ
$UFKLSDOHJR 7KH QDWLYHV DUH ZHLJKWHG XQGHU RSSUHVVLRQ DQG H[SORLWDWLRQ
/LNHZLVHLQ9LFWRU\&RQUDGVKRZVWKDW0RUULVRQLV³WKHGHDUO\EHORYHGIULHQGRI
D TXDQWLW\ RI *RGIRUVDNHQ YLOODJHV XS GDUN FUHHNV DQG REVFXUH ED\V ZKHUH KH
WUDGHG IRU µSURGXFH¶´ 9 0RUULVRQ ILQGV WKHVH VHWWOHPHQWV LQ PLVHUDEOH
FRQGLWLRQV GXH WR ODFN RI IRRG DQG RWKHU QHFHVVLWLHV 7KH SHRSOH DUH KXQJU\ DQG
FODPRXULQJ IRU IRRG 7KH\ UHMRLFH DW KLV DUULYDO DV 0RUULVRQ¶V YLVLW EULQJV
SURYLVLRQVWKDWWKH\QHHGWRVXUYLYH0RUULVRQZRXOGH[SODLQWRWKHPWKDW³LWZDV
DQ DGYDQFH WKDW WKH\ ZHUH LQ GHEW WR KLP QRZ´ 9 7KRXJK 0RUULVRQ KHUH
VHHPVWRDFWXDOO\EHREOLJLQJWKHSRSXODFH\HW³0RUULVRQZRXOGEHDPDQGJOLWWHU
DWWKLVH[FLWHPHQWWKURXJKKLVVLQJOHH\HJODVVZLWKDQDLURILQWHQVHJUDWLILFDWLRQ´
9+HLVSOHDVHGIRUIXOILOOLQJWKHSXUSRVHRILPSHULDOLVP0RUULVRQKDVEHHQ
VXFFHVVIXOLQPDNLQJWKHQDWLYHVKLVGHEWRUV0RUHRYHUKLVGLVFXVVLRQRIKLVWUDGH
ZLWK +H\VW JLYHV WKH UHDGHUV DQ LQVLJKW LQWR WKH DFWXDO UDWLRQDOH RI 0RUULVRQ¶V
EHQHYROHQFH :KHQ +H\VW VHHV KRZ 0RUULVRQ KHOSV WKH QDWLYHV 0RUULVRQ WHOOV
KLP³µ,VKDOOVTXHH]HWKHP\HWVRPHGD\±QHYHU\RXIHDU¶´9,WVKRZVWKH
VXEVWDQWLDO LQWHQWLRQ RI WKH ZKLWH PDQ¶V FRQVLGHUDWH DSSURDFK 7KH ZKLWH PDQ
DOZD\VZDQWWRUXOHRYHUWKHQRQZKLWHFRPPXQLW\+HH[SORLWVWKHEDVLFQHHGVRI
WKH QDWLYHV IRU KLV RZQ SURILWV DQG SURPRWLRQ /LNH 0RUULVRQ LQ 9LFWRU\ LQ 7KH
6KDGRZ/LQHDGRPLQDWLQJ$UDERZQVDVKLSFDOOHG9LGDUDQGH[HUFLVHVLPPHQVH
SRZHU RYHU WKH QDWLYHV &RQUDG UHFRUGV WKDW WKH $UDE ³ZDV KDYLQJ KLV KDQG
VHYHUHO\NLVVHGE\DFURZGRI0DOD\SLOJULPVWRZKRPKHKDGGRQHVRPHIDYRXU
LQWKHZD\RIIRRGDQGPRQH\+LVDOPVJLYLQJ,KDYHKHDUGZDVPRVWH[WHQVLYH
FRYHULQJDOPRVWWKHZKROH$UFKLSHODJR)RULVQ¶WLWVDLGWKDWµ7KHFKDULWDEOHPDQ
LVWKHIULHQGRI$OODK"¶´76/7KH0DOD\DQVKDYHEHHQUHGXFHGWRWKHVWDWXV
RI EHJJDUV ZKR DUH IRUFHG WR HVWHHP WKH VRFDOOHG EHQHYROHQW PDVWHUV 5DWKHU
WKDQEULQJLQJOLJKWNQRZOHGJHDQGKDSSLQHVVLQWKHOLYHVRIWKHQDWLYHVLPSHULDO
VHUYDQWVDQGDJHQWVPDNHWKHOLIHRIWKHQRQZKLWHVPLVHUDEOH&RQUDGLVQRWRQO\
D PXWH VSHFWDWRU DQG SURSDJDWRU RI WKH KLJKVXQJ LPSHULDO YDOXHV EXW KH DOVR
UHIOHFWV XSRQ LWV ZRUNLQJV DQG LWV UHDOLW\ +H XQPDVNV WKH KRUULEOH IDFHV RI WKH
QHJRWLDWRUVRIWKHKHJHPRQ\
$IWHUDQDO\]LQJWKHH[SRVLWLRQRIWKHH[SORLWDWLYHQDWXUHRIFRORQLDOIRUFHVLQ
+HDUW RI 'DUNQHVV DQG 9LFWRU\ D VFUXWLQ\ RI /RUG -LP DOVR KLQWV DW &RQUDG¶V
HOXFLGDWLRQ RI KRUULILF DWWLWXGH RI LPSHULDOLVP WRZDUGV WKH QRQZKLWHV 7KH
SLOJULPVRQ3DWQDDUHFRQVLGHUHGWREHDOLIHOHVVIUHLJKWZKLFKKDVWREHGHOLYHUHG
WRLWVSRUW%XWZKHQDWHPSHVWDULVHVLQWKHVHDWKHFUHZPHPEHUVOLNHWKHUDWV
DUH WKH ILUVW RQHV WR DEDQGRQ WKH VKLS :LWKRXW D VHFRQG WKRXJKW WKH\ OHDYH WKH
SLOJULPVDWWKHPHUF\RIWKHLUGHVWLQ\)RUWKHZKLWHFUHZWKHSLOJULPVDUHOLNHDQ
XQLPSRUWDQWIUHLJKWZKLFKFRXOGEHDEDQGRQHGLQDQ\HPHUJHQF\
(LJKWKXQGUHGPHQDQG ZRPHQZLWKIDLWKDQGKRSHVZLWKDIIHFWLRQV
DQGPHPRULHVWKH\KDGFROOHFWHGWKHUHFRPLQJDIWHUWUHDGLQJWKH
MXQJOH SDWKV GHVFHQGLQJ WKH ULYHUV SDVVLQJ WKURXJK VXIIHULQJ
PHHWLQJVWUDQJHVLJKWVEHVHWE\VWUDQJHIHDUVXSKHOGE\RQHGHVLUH
$W WKH FDOO RI DQ LGHD WKH\ KDG OHIW WKHLU IRUHVWV WKHLU FOHDULQJV WKH
SURWHFWLRQ RI WKHLU UXOHUV WKHLU SURVSHULW\ WKHLU SRYHUW\ WKH
VXUURXQGLQJVRIWKHLU\RXWKDQGWKHJUDYHVRIWKHLUIDWKHUV7KH\FDPH
FRYHUHG ZLWK GXVW ZLWK VZHDW ZLWK JULPH ZLWK UDJV WKH
XQFRQVFLRXVSLOJULPVRIDQH[DFWLQJEHOLHI/-
3DWQDLVD³ORFDOVWHDPHUDVROGDVKLOOVOHDQOLNHDJUH\KRXQGDQGHDWHQXSZLWK
UXVW ZRUVH WKDQ D FRQGHPQHG ZDWHU WDQN´ /- ,W KDV EHHQ UHFUHDWHG RQ WKH
PRGHORIDFRORQ\UXOHGE\LPSHULDODXWKRULW\+XQGUHGVRISLOJULPVKDYHQRRWKHU
RSWLRQ EXW WR XQFRQGLWLRQDOO\ WUXVW WKH DELOLW\ RI D IHZ ZKLWH PHQ 7KH SLOJULPV
EHLQJ WDNHQ LQ 3DWQD WR WKHLU GHVWLQDWLRQ VWURQJO\ VXJJHVW WKH VWDWH RI IRUPHU
FRORQLHV RI WKH (DVW ZKLFK DUH VXSSRVHG WR EH HPEDUNLQJ RQ D MRXUQH\ WR
SURVSHULW\ DQG GHYHORSPHQW XQGHU WKH ZHVWHUQ OHDGHUVKLS WHFKQRORJ\ DQG
VFLHQFH7KH3DWQDLQFLGHQWVKRZVWKHFDUHOHVVPHUFLOHVVDQGKHDUWOHVVDWWLWXGHRI
WKHZKLWHRIILFHUV7KHSLOJULPVDUHOLNHQHGWRZDWHUZKLFKLVH[SHFWHGWRWDNHWKH
VKDSH RI WKH WLJKW FRPSDUWPHQWV LQ WKH VKLS 7KH DXWKRU KLQWV DW WKH XQUHVWULFWHG
VXEPLVVLYHQHVVDQGUHOLDQFHRIWKHSLOJULPVZKHQKHVKRZVWKHP³EHORZWKHURRI
RIDZQLQJVVXUUHQGHUHGWRWKHZLVGRPRIZKLWHPHQDQGWRWKHLUFRXUDJHWUXVWLQJ
WKHSRZHURIWKHLUXQEHOLHIDQGWKHLURQVKHOORIWKHLUILUHVKLSWKHSLOJULPVRIDQ
H[DFWLQJ IDLWK VOHSW DOO HTXDO EHIRUH VOHHS GHDWK¶V EURWKHU´ /- %XW WKH
LPSHULDORIILFHUVEHOLHWKHWUXVWDQGIDLWKRIWKHVHLQQRFHQWSLOJULPVDQGSURMHFWWKH
IDLOXUH RI WKH P\WK RI ZKLWH PDQ¶V EXUGHQ 6\PEROLFDOO\ LW VKRZV WKH IDLOXUH RI
WKHLPSHULDOVHWXS
&RQUDG¶VQDUUDWRUWDONVDERXWWKHDSSURDFKRIWKHFUHZDQGVD\VWKDWWKH\GR
QRW UHFRJQLVH DQ\ DVVRFLDWLRQ RU ERQG RI KXPDQLW\ EHWZHHQ WKHPVHOYHV DQG WKH
SLOJULPV +H VD\V WKDW WKH (XURSHDQ FUHZ RI ³WKH ILYH ZKLWHV RQ ERDUG OLYHG
DPLGVKLSVLVRODWHGIURPWKHKXPDQFDUJR´/-)RUWKHPWKHHLJKWKXQGUHG
SLOJULPV DUH RQO\ FDUJR ZLWK ZKLFK WKH\ EXLOG QR UHODWLRQ DQG FRPPXQLFDWLRQ
:KHQGDQJHULVVHHQVXUURXQGLQJWKHVKLSWKH(XURSHDQRIILFHUVGHVHUWLWWRVDYH
WKHLU RZQ OLYHV ZLWK DOO WKH SLOJULPV VOHHSLQJ 1RW HYHQ RQFH GRHV WKHLU
FRQVFLHQFH KROG WKHP EDFN IRU WKHLU GXW\ ,W LV RQO\ -LP ZKR YDFLOODWHV DQG
IDOWHUVEXWDWODVWKHWRRMXPSVIURPWKHVKLS²KLVVKLSKLVGXW\KLVFKDQFHWR
SHUIRUP WKH KHURLF GHHGV $IWHU WKHLU RZQ HVFDSH WKH FUHZ WDONV DV LI WKH VKLS
ZKLFKLWKDVOHIWEHKLQGLVQRWFDUU\LQJDQ\KXPDQEHLQJV7KHOLYHVWKHIHHOLQJV
DQGWKHVHQWLPHQWVRIWKHRWKHUUDFHDUHQHJDWHG
,Q $OPD\HU¶V )ROO\ DOVR KXPDQ EHLQJV KDYH EHHQ UHGXFHG WR WKH VWDWXV RI
FRJVZKRFRQWULEXWHWRWKHHDUQLQJVDQGSURILWVRIWKHLPSHULDOFRPSDQLHV&RQUDG
VKRZVWKHPLVWUHDWPHQWDQGDEXVHRIWKHQDWLYHVDQGWKHLUFDSDELOLWLHVLQWKHRIILFH
RI +XGLJ ZKHUH ³DPRQJVW SLOHV RI PHUFKDQGLVH´ WKH &KLQHVH FOHUNV ZRUN
LQFHVVDQWO\ $) 7KHVH³QHDW FRRODQGVDG H\HGFOHUNVZURWHUDSLGO\DQGLQ
VLOHQFHHQGLQJZLWKDGHVSHUDWH\HOO´$)2WKHUZRUNHUVIURP&KLQDDUH
FRQWLQXRXVO\ ³FRXQWLQJ DQG SLOLQJ´ WKH VLOYHU JXLOGHUV ³XQGHU WKH VXSHUYLVLRQ RI
0U9LQFN´$)2XWVLGHWKHSULYDWHRIILFHRI0U+XGLJWKHUHVWDQGVD0DOD\
KROGLQJDVPDOOVWULQJZLWKZKLFKKHPRYHVDSXQNKDIRU+XGLJ+HWRROLNHWKH
&KLQHVHFOHUNVZRUNVZLWKWKHUHJXODULW\RIDPDFKLQH:KHQWKHLQQRFHQWSHRSOH
RI WKH QRQ(XURSHDQ FLYLOL]DWLRQ FRPH LQ FRQWDFW ZLWK GHYLRXV DQG DJJUHVVLYH
(XURSHDQ ZRUN FXOWXUH WKH\ DUH H[SHFWHG WR WUDQVIRUP LQWR SURSHUO\ OXEULFDWHG
SDUWV RI D PDFKLQH 7KH (XURSHDQ HFRQRP\ VWULYHV WR HQVXUH D RQH ZD\ IORZ RI
EHQHILWV ,W WKULYHV RQ WKH HFRQRPLF H[SORLWDWLRQ SV\FKRORJLFDO XSURRWLQJ DQG
FXOWXUDOGLVUXSWLRQRILWVHPSOR\HHV
&RQUDG¶VQDUUDWRUVDUHDQDO\WLFDOEHLQJVZKRDUHQRWPHUHO\PXWHZLWQHVVHV
DQG SURSDJDWRUV RI WKH KLJKVXQJ LPSHULDO YDOXHV EXW WKH\ DOVR UHIOHFW XSRQ LWV
ZRUNLQJDQGWKHUHDOLW\7KHGRPLQDWLQJSRZHUVGHILQHVRPHGXWLHV7KHVHGXWLHV
DUH H[HFXWHG E\ WKH QRQZKLWHV ZKLOH WKH ZKLWHV VKLUN IURP WKHLU ZRUN 7KRXJK
WKH EULFNPDNHU LQ +HDUW RI 'DUNQHVV KDV QRW GRQH DQ\WKLQJ DW WKH &RPSDQ\
6WDWLRQ \HW KH LV SDLG IRU KLV MRE 7KH ZHOOIXUQLVKHG RIILFH RI $OPD\HU LQ
$OPD\HU¶V)ROO\LVVXEPHUJHGXQGHUOD\HUVRIGXVW6XFKH[DPSOHVIURP&RQUDG
VKRZWKHGLIIHUHQFHVEHWZHHQWKHQDWXUHDQGGHGLFDWLRQRIWKHZKLWHVDQGWKHQRQ
ZKLWHV WRZDUGV WKHLU ZRUN 7KURXJK KLV GLOLJHQW DQG FRQVFLHQWLRXV QDUUDWRUV
&RQUDG EULQJV EHIRUH WKH UHDGHUV WKH GLVFUHSDQF\ EHWZHHQ WKH RUWKRGR[ YLHZV
VXSSRUWLQJWKHLPSHULDOFDXVHDQGKLVRZQLGHDVRIWKHUHDOLW\ZKLFKSRLQWWRZDUGV
WKH VKRUWFRPLQJV RI WKH LPSHULDOLVP &RQUDG¶V LPSRUWDQW QDUUDWRU 0DUORZ LV
VWUDLJKWIRUZDUG DQG WKURXJK KLV SHUVXDVLYHQHVV KH LV DEOH WR H[SRVH WKH
SHFXOLDULWLHV RI WKH FRORQLDO UXOH 7KH GHVFULSWLRQ RI WKH LPDJHV RI H[SORLWDWLRQ
VKRZV WKDW &RQUDG LV DPRQJ WKH IHZ FRXUDJHRXV WZHQWLHWK FHQWXU\ ZULWHUV ZKR
JHQXLQHO\ VKRZ WKH GHIHFWV LPSHUIHFWLRQV DQG VKRUWFRPLQJV RI LPSHULDOLVP +H
GLVPDQWOHVWKHLPSHULDOHGLILFHEXLOWE\DXWKRUVOLNH.LSOLQJ-RQDK5DVNLQVD\V
7KH ZRUOG RI LPSHULDOLVP FDPH FUDVKLQJ WKURXJK WKH ZDOOV RI
QLQHWHHQWKFHQWXU\ QRYHO 2OG FRQIOLFWV ZHUH WHUPLQDWHG ROG
ERXQGDULHV ZHUH GHVWUR\HG ROG FKDUDFWHUV ZHUH EDQLVKHG $ QHZ
XQLYHUVH RI ILFWLRQ ZDV VHW GRZQ LQ WKHLU SODFH $ UHYROXWLRQ LQ WKH
QRYHO ZDV HIIHFWHG ,W ZDV -RVHSK &RQUDG ± WKH 3ROH WKH RXWVLGHU ±
ZKREDWWHUHGGRZQWKHROGZDOOV+HVHWWKHGRFNRQWKHWLPHERPERI
WKH WZHQWLHWKFHQWXU\ UHYROXWLRQ LQ WKH QRYHO +LV ILUVW EODVW OHYHOOHG
WKHROGKRXVHRIQLQHWHHQWKFHQWXU\ILFWLRQ7KHVHFRQGULSSHGDVXQGHU
WKHLPSHULDOKRXVHRIPRGHPILFWLRQ5XG\DUG.LSOLQJ¶VPRQXPHQWWR
WKH HPSLUH .LSOLQJ¶V ZDOOV KLGH WKH WUXWK RI LPSHULDOLVP &RQUDG
EURNHWKHPGRZQ+HGUDJJHGWKHFRORQLDOZRUOGRQWRVWDJHFHQWUHRI
(QJOLVKILFWLRQ5DVNLQ
3RVWFRORQLDO FULWLFV RSSRVH WKH PLVPDQDJHPHQW GLFWDWRULDO DQG W\UDQQLFDO
FRQGLWLRQVZKLFKUHVXOWLQSRYHUW\DQGGHVWUXFWLRQRIQDWLYHFXOWXUHV&RQUDGDOVR
OD\VEDUHWKHWUXWKRILPSHULDOLVPDQGLWVGHHGV,Q&RQUDGDSRVWFRORQLDOUHDGHU
PD\ ILQG WKH VKDUSHVW FULWLFLVP RI WKH LPSHULDO IRUFHV LQ KLV GHVFULSWLRQ RI WKH
H[FUXFLDWLQJ DJRQL]LQJ DQG XQEHDUDEOH KXPDQ FRQGLWLRQ ZLWKLQ WKH FRQWH[W RI
(PSLUHEXLOGLQJ&RQUDGXQGUHVVHVWKHJUHHGRIWKHVHOIVHHNLQJ+HXQPDVNVWKH
GHFHSWLRQ WKDW KDG EHHQ YHLOHG EHKLQG WKH WKLQ OD\HU RI WKH ZKLWH VNLQV &RQUDG
VKRZVWKDWWKHP\WKVRIWUDGLWLRQDOLGHDOVRIUHSXWDWLRQPDJQLILFHQFHSULQFLSOHV
FRQFHDODFRORVVDODQGGUHDGIXOVKDPDQGDIIHFWDWLRQ
%HKLQG WKH VPRNHVFUHHQ RI VSUHDGLQJ FLYLOL]DWLRQ WKH DQQH[DWLRQ RI WKH
WHUULWRULHVRWKHUWKDQ(XURSHDQKDVEHHQRSSRVHGE\RWKHUZULWHUVOLNH%DUWRORPH
GH /DV &DVDV 6DPXHO 'DQLHO 7]YHWDQ 7RGRURY +X[OH\ 6SHQFHU DQG -6 0LOO
7KHLU OLWHUDWXUH VKRZV WKHLU SURWHVW ³DJDLQVW WKH EHKDYLRXU RI WKHLU FRPSDWULRWV
DEURDG´ :DOGHU $FFRUGLQJ WR :DOGHU HYHQ DV ODWH DV WKH SUHVHQW
SRVWFRORQLDOHUDWKHDERYHPHQWLRQHG(XURSHDQVDQGWKHLUZRUNV³PDNHFKLOOLQJ
UHDGLQJ´ :DOGHU 7KH\ ³EHDU WKH ZLWQHVV WR WKH PDQQHU LQ ZKLFK D WUDGLQJ
DQGHYDQJHOL]LQJPLVVLRQKDGEHHQWUDQVIRUPHGLQWRJHQRFLGHWKHSUHGRPLQDQWO\
SHDFHIXO DQG IULHQGO\ LQGLJHQRXV SHRSOHV WUHDWHG ZRUVH WKDQ ZLOG GRJV LQ WKH
KHDGORQJUXVKIRUSUHFLRXVPHWDOVODQGDQGSRZHU´:DOGHU7KHLUDWWHPSWLV
WR GHVFULEHV KRZ WKH ³FUHZ RI EXWFKHUV HPSOR\HG LQ VR SLRXV DQ H[SHGLWLRQ´
LQGXOJHLQLQKXPDQLW\DQGGHVWUXFWLRQZKLFKUHVXOWVLQ³WKHHDUWKUHHNLQJZLWKWKH
EORRGRILWVLQKDELWDQWV´:DOGHU
7KHZULWHUVHQOLVWHGDERYHHQVXUHWKDW³WKHYRLFHVRIWKHFRORQL]LQJOLWHUDWH
FRPPXQLW\KDYHVXUYLYHGEHVWDQG\HWLWVWLOOUHTXLUHVDFRQVFLRXVUHIRFXVLQJRI
YLVLRQWRSHUFHLYHWKHXQFHUWDLQW\DQGFULWLFLVPZKLFKRFFDVLRQDOO\DFFRPSDQLHG
WKHTXHVWIRU(PSLUH´:DOGHU7KHVHZULWHUVWU\WRKHOSWKHQDWLYHVWR³UHJDLQ
DQLGHQWLW\´E\³UHWULHYLQJWKHLUKLVWRU\´:DOGHU&RQWLQXLQJWKHVDPHWKUHDG
IXUWKHUDQDQDO\VLVRI&RQUDG¶VDSSURDFKWRZDUGVWKHZKLWHSURWDJRQLVWVDQGRWKHU
PLQRU ZKLWH FKDUDFWHUV VKRZV RSSRVLWLRQ WR WKH SUHYDLOLQJ RXWORRN DQG
DVVXPSWLRQVRIKLVWLPHVRILPSHULDOLVP+H H[KLELWVWKDWGXHWRWKHLQWUXVLRQRI
WKHZKLWHVLQWKHODQGRIWKH2WKHUVWKHQDWLYHVDUHGULYHQRXWRIWKHLUKDELWDWLRQ
7KHHIIRUWVRIWKHVHZULWHUVLQFOXGLQJ&RQUDGDUH³LQEULHIDPRYHDZD\IURPD
GRPLQDQWYLHZRI(QJOLVKQHVV´&KLOGV7KHLUSXUSRVHVHHPVWREHWRJLYHD
WUXH DFFRXQW RI WKH QDWLYHV 7KH\ DOVR JLYH DQ RSSRUWXQLW\ WR WKH VXIIHULQJ QRQ
ZKLWHV IRU VHOIUHSUHVHQWDWLRQ DJDLQVW LPSHULDOLVP 7KH GLVLOOXVLRQPHQW ZLWK WKH
ZKLWH VXSHULRULW\ DQG LPSHULDOLVP WKH ULVH RI UHEHOOLRQV LQ WKH QRQZKLWH ODQGV
WKH JURZWK RI FRPPXQDOLVP RQ WKH RQH KDQG DQG WRWDOLWDULDQLVP RQ WKH RWKHU
EHFDPHDIHZFDXVHVZKLFKSURGXFHGUHJUHWDJDLQVWWKHLPSHULDOVHWXSDQGPDGH
WKHILFWLRQRIVRPHZULWHUVRIWKHVRFDOOHGVXSHULRUUDFH³SRLQWHGO\DQWLFRORQLDO
ILFWLRQ´ &KLOGV %XW DW WKH VDPH WLPH WKH UHVSRQVH RI WKHVH IHZ OLWHUDU\
ZULWHUV LV QRW WR EH PLVWDNHQ DV D YLUXOHQW SURWHVW LW LV RQO\ D ³SDVVLYH ER\FRWW´
&KLOGV
&RQUDG UHWHOOV WKH VDG VWRU\ RI WKH PDVVDFUHV WKDW UHVXOW LQ WKH QRQZKLWH
ODQGV JRLQJ LQWR PRXUQLQJ IRU HYHU +H GHSLFWV WKDW WKH FRORQL]HUV DUH PRUH
EODPHZRUWK\LPSXUHDQGEDUEDULFWKDQWKHQDWLYHV&RQUDGGHPRQVWUDWHVWKDWWKH
GRPLQDWRUV ³VXEPLWWHG WKH SRSXODWLRQ >RI WKH QRQZKLWH ODQGV@ WR DWURFLWLHV
UHQGHULQJ WKH SURYLQFH>V@ D QHDU ZDVWHODQG´ :DOGHU +LV WHVWLPRQ\ RI WKH
IDLOXUH RI WKH DJHQWV RI WKH LPSHULDOLVP EULQJV IRUWK WKH LPSHUIHFWLRQV RI WKH
FLYLOL]LQJ SXUSRVH RI WKH FLYLOL]HG &RQUDG FRXOG VHH ZKDW KDSSHQHG DW WKH EDFN
VWDJHRIWKHVPRRWKPHFKDQLVPRIWKHPDMHVWLFRSHUDWLRQ,QWKHQRQZKLWHZRUOG
³OHDYLQJ EHKLQG WKH IDFDGHV RI WKH FRORQL]HG ZRUOG WKH LQVWLWXWLRQV SRUW
EXLOGLQJVDQGDOOZKLWHKRWHOVWKDWKDGFRPSULVHGKLVDFWXDOH[SHULHQFHRIDIDU
IOXQJHPSLUHWRWKHIOLPV\WUDGLQJVWDWLRQVRI(XURSHDQHQFDPSPHQWVKHVDZWKH
DFWXDO FRQGLWLRQV RI FRORQL]HG DQG FRORQL]HU´ 6WDSH &RQUDG VHQVHG WKH
DEVXUGLW\ RI WKH LPSHULDO ZRUNLQJ LQ WKH QRQZKLWHODQGV ,W ZDV QRW DV VSOHQGLG
DQGPDJQLILFHQWDVJORULRXVDQGSURJUHVVLYHDVWKHQRWLRQVSURPRWHGDERXWLW7KH
LPDJHRIWKHZKLWHPHQLQWKHQRQZKLWHODQGVZDVWRWDOO\UHYHUVHWRWKHSRUWUD\HG
LFRQV 7KH ZKLWH DPEDVVDGRUV RI WKH VXSHULRU FXOWXUH DQG HQOLJKWHQPHQW ZHUH
QRVWDOJLF IRU WKHLU PRWKHU QDWLRQ DQG KRPH WRZQ 7KH\ FRXOG QRW IRUJHW WKHLU
RVWHQVLEOH UDFLDO DQG VH[XDO VXSHULRULW\ ,QVWHDG RI EHLQJ ZHOORUJDQL]HG
SURILFLHQW DQG EHQLJQ EHLQJV WKH\ KDG DFWXDOO\ EHFRPH PRUH VDYDJH WKDQ WKH
VDYDJHVWKHPVHOYHV
$FORVHORRN DWWKHFRORQLDOVHWXSEURXJKW&RQUDGFORVHUWRWKHEUXWDOLWLHV
DQG DWURFLWLHV WKDW DFFRPSDQLHG WKH FLYLOL]LQJ SXUSRVH 7KH (XURSHDQV DOZD\V
OHJLWLPDWH WKHLU UXOH RQ WKH EDVLV RI WKHLU PRUDO HWKLFDO UHOLJLRXV SROLWLFDO
HFRQRPLFDQGWHFKQRORJLFDOVXSHULRULW\SURSDJDWHGXQGHUWKHWLWOHRIGLVFRXUVHRI
SURJUHVV &RQUDG TXHVWLRQV WKH UHDOLW\ RI WKLV GLVFRXUVH DQG VKRZV WKH JUDYHO\
PDURRQHG DQG IDWDOO\ VWUDQGHG DUHDV +H WHDUV DSDUW WKH JOD]HG VXUIDFH RI WKH
UKHWRULFRISURJUHVVLRQDQG³LQRQHDVSHFWKHLVDPRUDOLURQLVW´6WDSH
$FFRUGLQJ WR 6WDSH &RQUDG SRXQFHV ³RQ LQVWDQFHV RI VHOIGHOXVLRQ K\SRFULV\
PRUDO OD]LQHVV VHQWLPHQWDOLVP ´ 6WDSH &RQUDG GHVFULEHV WKH
KXPDQLWDULDQ SUHWHQFH WKDW YHLOHG WKH (XURSHDQ QHJOLJHQFH WKHLU VHOIDGRSWHG
ULJKWV WR PXUGHU WKH QDWLYHV WKH EXUQLQJ RI WKH QRQZKLWH YLOODJHV DQG WKH
EH\RQGEHOLHILPSURSULHW\
7KHFKDSWHULOOXVWUDWHVWKDW&RQUDGGHEXQNVGHP\VWLILHVDQGGLVFUHGLWVWKH
FRORQLDO SUHWHQWLRXVQHVV DQG ZKLWH VXSHULRULW\ +H VKRZV WKDW WKH VXSSRVHG
VXSHULRU FLYLOL]DWLRQ LV QRW WKH UHSUHVHQWDWLYH RI XQDGXOWHUDWHG YDOXHV DQG LV DOVR
QRW DQ XQEOHPLVKHG H[DPSOH RI PRUDOLW\ DQG LQWHJULW\ 7KH GHWHULRUDWLRQ RI WKH
SURWDJRQLVWVRIDOPRVWDOOWKHQRYHOVRI&RQUDG ²IRUH[DPSOHWKH FRUURVLRQRI
.XUW] -LP +H\VW $OPD\HU DQG :LOOHPV WKH FHQWUDO FKDUDFWHUV RI +HDUW RI
'DUNQHVV' /RUG -LP 9LFWRU\ $OPD\HU¶V )ROO\ DQG $Q 2XWFDVW RI WKH ,VODQGV
UHVSHFWLYHO\²DXWKHQWLFDWHVWKHFROODSVHDQGWKHZRUWKOHVVQHVVDQGWKHDUURJDQFH
RIWKHRVWHQVLEO\DGYDQFHGZKLWHFXOWXUHDQGLWVSURSRXQGHGWKHRULHV,QIXVHGE\
WKHLUFXOWXUHDQGLWVWKHRU\RISURJUHVVWKHVHSURWDJRQLVWVEHFRPHDSUH\WRWKHLU
RZQ KHDGVWURQJ XQZDYHULQJ DQG DGDPDQW JUHHG IRU SRZHU DQG ZHDOWK $OO
SURWDJRQLVWVRI&RQUDGDUHGLUHFWO\UHODWHGWRWKHZKLWHVXSUHPDF\DQGGLUHFWO\RU
LQGLUHFWO\WRWKHRU\RISURJUHVVSURSRXQGHGE\WKHZKLWHUDFH%ULHIO\VSHOOLQJRXW
WKHIDLOLQJVRIWKHVHSURWDJRQLVWVZRXOGHOXFLGDWHWKHDERYHREVHUYDWLRQ
$FDVXDOUHDGLQJLQLWLDOO\VKRZVWKDW&RQUDGWULHVWROHJLWLPL]HWKHGLVFRXUVH
RISURJUHVVZKHQLQ+HDUWRI'DUNQHVV0DUORZDSSUHFLDWHVWKHZRUNGRQHE\WKH
(QJOLVK DXWKRULWLHV LQ FRPSDULVRQ WR WKDW GRQH E\ WKH RWKHU (XURSHDQ SRZHUV LQ
WKHFRORQLHV+HVD\VWKDWWKHUHGSDWFKHV²ZKLFKGHQRWHWKH(QJOLVKGRPLQDWLRQ
² RQ WKH PDS RI WKH GRPLQDWHG ZRUOG VKRZ ³WKDW VRPH UHDO ZRUN LV GRQH LQ
WKHUH´ +2' &RQUDG PHQWLRQV WKDW ZKLWH WUDGHUV OLNH WKH 0DQDJHU DW WKH
)LUVW&RPSDQ\6WDWLRQDQG.XUW]DWWKH,QQHU&RPSDQ\6WDWLRQLQ&RQJRDUHQRW
RQO\ WKH UHSUHVHQWDWLYHV RI WKH &RPSDQ\ EXW DUH DOVR FRQWUROOHG E\ LW +H VKRZV
WKDW LQ DFFRUGDQFH ZLWK WKH GLVFRXUVH RI SURJUHVV WKH UDFLDOO\ VXSHULRU ZKLWH
DJHQWVDUHERXQGWRHQOLJKWHQWKHQRQZKLWHSHRSOH+RZHYHUDVHULRXVUHDGLQJRI
WKH VDPH WH[W VKRZV WKDW &RQUDG GHQRXQFHV WKH LGLRP RI DGYDQFHPHQW $W WKH
EHJLQQLQJ RI KLV MRXUQH\ RI HQOLJKWHQLQJ WKH QDWLYHV .XUW] OLNH DQ\ DJHQW RI
ZKLWH DXWKRULW\ WKLQNV WKDW WKH LGHRORJ\ RI WKH PLVVLRQ LV LOOXPLQDWLQJ
LQIRUPDWLYH LQVWUXFWLYH DQG FLYLOL]LQJ %XW ODWHU KH GLVFRYHUV WKH FRUUXSWLRQ RI
FRORQLDOLVP¶V PRUDO HVWDEOLVKPHQW +LV ODVW FU\ ³µ7KH KRUURU 7KH KRUURU´¶ LV
V\PEROLFRIWKHXQFHUWDLQW\DQGDPELJXLW\RIWKHWKHRU\RISURJUHVV+2'
&RQUDG¶V GHVFULSWLRQ RI .XUW] LQ +HDUW RI 'DUNQHVV UHSUHVHQWV WKH
JRYHUQDQFH RI WKH QRQZKLWH ODQGV E\ WKH VKHHU JUHHG DQG GHVLUH IRU PDWHULDO
SURILW RI ERWK WKH WUDGHUV DQG LPSHULDO VHWXS ,W VKRZV WKH UHDOLW\ EHQHDWK WKH
KROORZSUHWHQFHVRIWKHFLYLOL]LQJPLVVLRQ.XUW]ILUVWLQWUXGHVLQWRWKHQRQZKLWH
ODQG WKHQ FRQVLGHUV WKDW ODQG DV KLV RZQ DQG ILQDOO\ DV LWV &UHDWRU WULHV WR UXOH
RYHULW0DUORZVD\VWKDW.XUW]WKHJHQLXVRIWKH&RPSDQ\LQ&RQJRSRVVHVVHVD
UDYHQRXVKXQJHU ³\RXVKRXOGKDYHKHDUGKLPVD\µ0\ ,QWHQGHGP\ LYRU\
P\ ULYHU P\¶ ± HYHU\WKLQJ´ +2' $IWHU KDYLQJ WDVWHG WKLV SRZHU RQFH
.XUW]FRXOGQRWJREDFNWRWKHFRQILQLQJFLYLOL]DWLRQRI(XURSHDQGWXUQVKLVERDW
DURXQG DIWHU FRPLQJ VRPH PLOHV GRZQ WKH ULYHU &RQUDG WUHDWV ZKLWH (XURSHDQ
VHWWOHUVLQ&RQJRZLWKVFRUQDQGGLVUHVSHFW
.XUW]LVGHVFULEHGDVWKHRQHZKR³KDGWDNHQDKLJKVHDWDPRQJVWWKHGHYLOV
RIWKHODQG´+2'+HWXUQVLQWRDFKLHIRIWKHWULEHOHDGHUV+HUHOLQTXLVKHV
WKH VRFLDO REOLJDWLRQV DQG WKH PRUDOLW\ RI KLV VXSHULRU FLYLOL]DWLRQ .XUW] KDV
EHFRPH D SDUW RI WKH SODFH ² WKH SODFH ZKLFK IRU 0DUORZ LV SULPHYDO 0DUORZ
VD\V³*RLQJXSWKDWULYHUZDVOLNHWUDYHOOLQJEDFNWRWKHHDUOLHVWEHJLQQLQJVRIWKH
ZRUOGZKHQYHJHWDWLRQULRWHGRQWKHHDUWKDQGWKHELJWUHHVZHUHNLQJV´DQG.XUW]
EHFRPHVDQLQWHJUDOSDUWRIWKLVSODFH+2')URP³µDQHPLVVDU\RISLW\DQG
VFLHQFH DQG SURJUHVV¶´ .XUW] EHFRPHV D IRVWHU FKLOG RI WKH ZLOGHUQHVV DQ HYLO
VSLULW³DPRQJVWWKHGHYLOVRIWKHODQG´+2'.XUW]EHFRPHVWKHLPDJHRI
HYLODQGLQKXPDQLW\
0DUORZ LV WDNHQ DEDFN E\ WKH VLJKW RI WKH VNXOOV SODQWHG RQ WKH VWDNHV LQ
IURQW RI .XUW]¶V KRXVH ³ WKHUH ZDV QRWKLQJ H[DFWO\ SURILWDEOH LQ WKHVH KHDGV
EHLQJWKHUH7KH\RQO\VKRZHGWKDW0U.XUW]ODFNHGUHVWUDLQWLQWKHJUDWLILFDWLRQ
RI KLV YLFLRXV OXVWV ´ +2' .XUW]¶V OLIH LQ &RQJR GHSLFWV WKDW WKH
(XURSHDQV ZKR JR WR FLYLOL]H WKH QDWLYHV DUH DFWXDOO\ PRUH VDYDJH WKDQ WKH VR
FDOOHGVDYDJHV2QHRIWKHKHDGVRQWKHVWDYHVRXWVLGHWKHKRXVHRI.XUW]VHHPV
WR EH VPLOLQJ 0DUORZ FDQQRW XQGHUVWDQG WKH VLJQLILFDQFH RI WKH VPLOH ³LW ZDV
EODFNGULHGVXQNHQZLWKFORVHGH\HOLGV±DKHDGWKDWVHHPHGWRVOHHSDWWKHWRS
RIWKDWSROHDQGZLWKVKUXQNHQGU\OLSVVKRZLQJDQDUURZZKLWHOLQHRIWHHWKZDV
VPLOLQJ WRR VPLOLQJ FRQWLQXRXVO\ DW VRPH HQGOHVV DQG MRFRVH GUHDP RI WKDW
HWHUQDOVOXPEHU´+2' 3HUKDSVWKHIDFHRIWKHGHDGUHEHOLVVPLOLQJDWWKH
ZUHWFKHG FRQGLWLRQ RI 0DUORZ ZKR LV VWXQQHG WR VHH WKH UHDOLW\ RI WKH LPSHULDO
DJHQWV RU SHUKDSV WKH IDFH RI WKH VXSSRVHG UHYROXWLRQDU\ VPLOHV DW WKH
FRUUXSWLRQ PRUDO GHJUDGDWLRQ DQG WKH SHUSHWXDO GDUNQHVV RI WKH FRORQLDO VHWXS
:KDWHYHUPD\EHWKHUHDVRQRIWKHVPLOH&RQUDGKDVEHHQDEOHWREULQJRXWWKH
UHDOLW\RIWKHLPSHULDODJHQWVDQGWUDGHUV+HVKRZVWKDWLPSHULDOLVPRQO\EUHHGV
SULGHJUHHGDQGIHURFLW\LQLWVDJHQWV
&RQUDG UHYHDOV WKH DIIHFWDWLRQ RI .XUW] E\ UHYHDOLQJ LQ KLV LYRU\ IDFH ³WKH
H[SUHVVLRQRIVRPEUHSULGHRIUXWKOHVVSRZHURIFUDYHQWHUURU±RIDQLQWHQVHDQG
KRSHOHVV GHVSDLU´ +2' 7KRXJK WKH PXOWLGLPHQVLRQDO .XUW] ZDV D
PDVWHUPLQG DQ DUWLVW DQ LQVWUXPHQWDOLVW D ZULWHU D VSRNHVPDQ D KXPDQLWDULDQ
DQG D ORYHU WRR \HW KH HQGV EHLQJ VHHQ DV KROORZ DW KHDUW +H LV DVVHUWLYH
DJJUHVVLYH FRQFHLWHG SRPSRXV YRUDFLRXV DQG UDYHQRXV 7KH H[WUHPH LPPRUDO
DFWLYLWLHV RI .XUW] ³WKH EHVW DJHQW´ DQG ³DQ H[FHSWLRQDO PDQ RI JUHDWHVW
LPSRUWDQFHWRWKH&RPSDQ\´FRPHDVDVKRFNWR0DUORZDQGKHVKXGGHUVDWWKH
JULP UHDOLW\ RI LGHDOV RI SURJUHVV GHHSO\ URRWHG LQ KLP +2' %HQLWD 3DUU\
ULJKWO\REVHUYHVWKDWLQWKHZRUNVRI&RQUDG³WKHLPSHULDOLVWSURMHFWLVVWULSSHGRI
LWV P\VWLTXH DV WKH GLYLQHO\ RUGDLQHG DQG KLVWRULFDOO\ GHWHUPLQHG DJHQF\ RI
EULQJLQJ WKH HDUWK XQGHU UDWLRQDO UXOH 3DUU\ 0DUORZ XQGHUJRHV WKH JUHDW
SUREOHPV DQG IDFHV DQ DWWDFN RQO\ WR UHDFK .XUW] %XW RQFH KH PHHWV .XUW] KH
ILQGV LQ KLP ³DQ DQLPDWHG LPDJH RI GHDWK FDUYHG RXW RI ROG LYRU\´ +2' .XUW] HPHUJHV DV DQ DEVROXWH GLFWDWRU EHFDXVH LQ WKH QRQZKLWH WHUULWRU\ KH
UHOHQWOHVVO\SXUVXHVYLROHQFHYRUDFLW\DQGPDOLFH
0RUHRYHU&RQUDG¶V0DUORZGRHVQRWDSSUHFLDWHWKHFRQTXHVWRIWKHZHDNHU
SDUWV RI WKH ZRUOG +H PHQWLRQV WKDW WKH PDGQHVV IRU SRZHU DQG GRPLQDQFH LV
UHGHHPHGRQWKHEDVLVRIDQLGHDRISURJUHVVLRQEHKLQGWKHZKLWHPDQ¶VLQWUXVLRQ
LQWRWKHQRQZKLWHZRUOG0DUORZREVHUYHVWKDWWKHLGHDRISURJUHVVKDVEHFRPH
IOLPV\ DQG IUDLO DQG LV PDLQWDLQHG RQO\ E\ WKH ZRPHQ RI WKH VXSHULRU VRFLHW\
VLQFHWKH\DUHLJQRUDQWRILWVUHDOYDOXHDQGPHDQLQJ0DUORZGRXEWVWKHGLVFRXUVH
RISURJUHVVWKDWSURSDJDWHGWKDWWKHZKLWHPHQZHUH³VRPHWKLQJOLNHDORZHUVRUW
RIDSRVWOH´ZKLOHKLVDXQWWKLQNVWKDWVKHKDGKHOSHG0DUORZWRJHWHQJDJHGLQD
SKLODQWKURSLF PLVVLRQ RI ³µZHDQLQJ WKRVH LJQRUDQW PLOOLRQV IURP WKHLU KRUULG
ZD\V¶´ +2' 7KH ZKLWH DJHQW .XUW] EHFRPHV D SDUW RI WKH DSSDOOLQJ
FHUHPRQLHV RI WKH QDWLYHV DQG WDNHV SULGH LQ KLV XQFRQWUROOHG VXSUHPDF\ DQG
FRYHWRXVQHVV DQG WKXV ³LQ JRLQJ QDWLYH .XUW] EHWUD\V WKH FLYLOL]LQJ LGHDOV ZLWK
ZKLFK VXSSRVHGO\ KH VHW RXW IURP (XURSH´ 3DWULFN 7KH SXUSRVH RI WKH
(XURSHDQVLVRQO\³WRWHDUWKHWUHDVXUHRXWRIWKHERZHOVRIWKHODQGZLWKQR
PRUHRUDOSXUSRVHDWWKHEDFNRILWWKDQWKHUHLVLQEXUJODUVEUHDNLQJLQWRDVDIH´
+2',QWKHQRYHO0DUORZLQWHUSUHWV.XUW]¶VOLEHUDOPDQLIHVWRDQGVD\V
³$OO (XURSH FRQWULEXWHG WR WKH PDNLQJ RI .XUW] DQG E\ DQG E\ ,
OHDUQHG WKDW PRVW DSSURSULDWHO\ WKH ,QWHUQDWLRQDO 6RFLHW\ IRU WKH
6XSSUHVVLRQRI6DYDJH&XVWRPVKDGHQWUXVWHGKLPZLWKWKHPDNLQJRI
D UHSRUW IRU LWV IXWXUH JXLGDQFH $QG KH KDG ZULWWHQ LW WRR 6HYHQWHHQSDJHVRIFORVHZULWLQJKHKDGIRXQGWLPHIRU+HEHJDQ
ZLWKWKHDUJXPHQWWKDWZHZKLWHVIURPWKHSRLQWRIGHYHORSPHQWZH
KDG DUULYHG DW µPXVW QHFHVVDULO\ DSSHDU WR WKHP >VDYDJHV@ LQ WKH
QDWXUHRIVXSHUQDWXUDOEHLQJV±ZHDSSURDFKWKHPZLWKWKHPLJKWRID
GHLW\¶DQGVRRQDQGVRRQµ%\WKHVLPSOHH[HUFLVHRIRXUZLOOZHFDQ
H[HUW D SRZHU IRU JRRG SUDFWLFDOO\ XQERXQGHG¶ HWF HWF )URP WKDW
SRLQWKHVRDUHGDQGWRRNPHZLWKKLP,WJDYHPHWKHQRWLRQRIDQ
H[RWLF,PPHQVLW\UXOHGE\DQDXJXVW%HQHYROHQFH,WPDGHPHWLQJOH
ZLWKHQWKXVLDVP,WZDVYHU\VLPSOHDQGDWWKHHQGRIWKDWPRYLQJ
DSSHDO WR HYHU\ DOWUXLVWLF VHQWLPHQW LW EOD]HG DW \RX OXPLQRXV DQG
WHUULI\LQJOLNHDIODVKRIOLJKWQLQJLQDVHUHQHVN\µ([WHUPLQDWHDOOWKH
EUXWHV¶ 7KH FXULRXV SDUW ZDV WKDW KH KDG DSSDUHQWO\ IRUJRWWHQ DOO
DERXWWKDWYDOXDEOHSRVWVFULSWXP´+2'
.XUW]¶V UHSRUW RQ WKH 6DYDJH &XVWRPV UHIOHFWV WKH ZKLWH DJHQW¶V GXDOLW\ ,WV
RSHQLQJSDJHV DUHILOOHG ZLWKH[WUDYDJDQWSODQVIRUUHIRUPVEXWLWVDXWKRU¶VWUXH
IHHOLQJV DUH UHYHDOHG LQ WKH SRVWVFULSW RI KLV UHSRUW ZKLFK VD\V ³([WHUPLQDWH DOO
WKH EUXWHV´ +2' &RQVHTXHQWO\ LW KLQWV WKDW IRU WKH ZKLWHV WKH KXPDQ
EHLQJVRIWKHRWKHUUDFHVDUHQRPRUHWKDQEUXWHVZKRKDYHWREHZLSHGIURPWKH
IDFH RI WKH (DUWK 7KH ZKLWH VNLQ RI WKH WUDGHUV DQG WKHLU HQOLJKWHQLQJ PLVVLRQ
LQVWHDG RI GHQRWLQJ SXULW\ YLUWXH FODULW\ DQG YHUDFLW\ VLJQLI\ FRUUXSWLRQ HYLO
FRQIXVLRQOLHV
,I .XUW] LV GHVWLQHG WR EH WKH HQYR\ RI UDFLDO VXSUHPDF\ WKHQ RQH PD\ EH
DOORZHGWRVXJJHVWWKDWUHGXFLQJKLPWRDPHUHYRLFHRUWRDFKDUDFWHULGHQWLILDEOH
RQO\ E\ KLV GLVFRXUVH WUDQVIRUPV WKH FRORQLDOLVW LGHRORJ\ V\PEROLFDOO\ LQWR D
PHUH YHUEDO FRQVWUXFW .XUW] LV VXSSRVHG WR EH WKH FKDPSLRQ RI WKH ZKLWH
GRPLQDQFH DQG KLV LGHDV DQG YDOXHV DUH REYLRXVO\ WKRVH SURSRXQGHG E\ WKH
VXSHULRUUDFH .XUW]VWDQGVIRUWKHZKLWHVXSHULRULW\VRKLVGHVFHQWVXEVWDQWLDWHV
WKH IDLOXUH RI WKH ZKLWH HQWHUSULVH WRR :KDW UHPDLQV DIWHU WKH FROODSVH RI ERWK
WKDWLV.XUW]DQGZKLWHVXSUHPDF\LVKLVIORDWLQJYRLFHDQGKLVIOHHWLQJZRUGVWKDW
VSHDN RI KLV LJQRPLQLRXV IDLOXUH DQG WKH GHFHSWLYH UKHWRULF 2Q KLV GHDWKEHG
.XUW] UHIHUV WR WKH GUHDPV RI KLV VXFFHVV DQG WULHV WR FRQFHDO WKH UHDOLW\ RI KLV
IDLOXUH
³.XUW] GLVFRXUVHG $ YRLFH D YRLFH ,W UDQJ GHHS WR WKH YHU\ ODVW ,W
VXUYLYHGKLVVWUHQJWKWRKLGHLQWKHPDJQLILFHQWIROGVRIHORTXHQFHWKH
EDUUHQ GDUNQHVV RI KLV KHDUW 2K KH VWUXJJOHG KH VWUXJJOHG 7KH
ZDVWHV RI KLV ZHDU\ EUDLQ ZHUH KDXQWHG E\ VKDGRZ\ LPDJHV QRZ ±
LPDJHV RI ZHDOWK DQG IDPH UHYROYLQJ REVHTXLRXVO\ URXQG KLV
LQH[WLQJXLVKDEOHJLIWRIQREOHDQGORIW\H[SUHVVLRQµ0\,QWHQGHGP\
VWDWLRQ P\ FDUHHU P\ LGHDV ± WKHVH ZHUH WKH VXEMHFWV IRU WKH
RFFDVLRQDOXWWHUDQFHVRIHOHYDWHGVHQWLPHQWV7KHVKDGHRIWKHRULJLQDO
.XUW]IUHTXHQWHGWKHEHGVLGHRIWKHKROORZVKDPZKRVHIDWHLWZDVWR
EH EXULHG SUHVHQWO\ LQ WKH PRXOG RI SULPHYDO HDUWK %XW ERWK WKH
GLDEROLFORYHDQGWKHXQHDUWKO\KDWHRIWKHP\VWHULHVLWKDGSHQHWUDWHG
IRXJKWIRUWKHSRVVHVVLRQRIWKDWVRXOVDWLDWHGZLWKSULPLWLYHHPRWLRQV
DYLG RI O\LQJ IDPH RI VKDP GLVWLQFWLRQ RI DOO WKH DSSHDUDQFHV RI
VXFFHVVDQGSRZHU¶´+2'
7KURXJKKLVQDUUDWRU&RQUDGVKRZVWKDWDIWHUWKHLQWUXVLRQRIWKHZKLWHVLQ
WKHQRQZKLWHODQGVWKHWRWDOFKDUDFWHURIWKHQRQZKLWHZRUOGLVLQHWHUQDOFKDRV
7KHUHH[LVWVDODFNRIRUGHUIRUPEHDXW\DQGZLVGRP6XFKDVLWXDWLRQFDXVHVQRW
RQO\DFULVLVRIPRUDOLW\LQWKHZKLWHV0RUDOLW\KHUHWXUQVRXWWREHQRWKLQJEXW
DQRWKHU PDQPDGH V\VWHP DV WUDQVLWRU\ IUDJLOH DQG IOLPV\ DV DQ\ RWKHU KXPDQ
FRQVWUXFWLRQ7KURXJKWKHFKDUDFWHUVOLNH.XUW]&RQUDGJLYHVVSDFHWRWKHPRUDO
XQFHUWDLQW\ RI WKH ZKLWH VXSUHPDF\ DQG GLVFRXUVH RI SURJUHVV LQ WKH QRQZKLWH
ODQGV ,Q &RQUDG WKH DPRUDOLW\ RI WKH DJHQWV RI WKH ZKLWH ODQGV IXQFWLRQV DV DQ
DUFKHW\SH IRU DQG D PDQLIHVWDWLRQ RI WKH PRUDO SRYHUW\ RI D SURJUHVVLYHO\
PDWHULDOL]HGDJHV\VWHPDQGLWVPHGLDWRUV7KHZKROHVHWRIYDOXHVXQGHUO\LQJWKH
LPSHULDOLVW LGHRORJ\ LV UHGXFHG WR ZRUGV DQG H[SUHVVLRQV WKDW ODFN DXWKHQWLFLW\
YDOLGLW\ JHQXLQHQHVV DQG VXEVWDQFH ,Q WKLV YHU\ FRQWH[W 8UVXOD /RUG FRQILUPV
WKDW +HDUW RI 'DUNQHVV ³GRFXPHQWV WKH WUDQVIRUPDWLRQ RI FLYLOL]HG LGHDOV LQWR
ZRUGV WKDW VWDQG DORQH GLYRUFHG IURP D PHDQLQJIXO UHODWLRQ ZLWK WKHLU UHIHUHQW´
/RUG 7KURXJK .XUW] &RQUDG UHSUHVHQWV QWKH RWKHU VLGH RI LPSHULDOLVP¶V
EHQHYROHQWUROH+HVKRZVWKHHWKLFDODQGVSLULWXDOFROODSVHRIWKHLPSHULDOVHWXS
SHUVRQLILHGLQ.XUW]
.XUW]¶V LV QRW WKH RQO\ RQH VXIIHULQJ IURP GHOXVLRQV RI VHOIJUDQGHXU
&RQUDG¶V$OPD\HU¶V)ROO\EHJLQVZLWKDQDQQRXQFHPHQWRIWKHZKLWHSURWDJRQLVW¶V
GHOXVLRQVZKLFKSUHSDUHVWKHUHDGHUVWRVHHKLVIDLOXUHVLQFHIDOVHLPSUHVVLRQVDUH
WUDQVLHQW $OPD\HU¶V GLVDSSRLQWPHQW ZLWK KLV PLVVLRQ DQG OLIH UHSUHVHQWV WKH
EUHDNGRZQ RI WKH ZKLWH KHJHPRQ\ DQG WKHRU\ RI SURJUHVV ,Q WKH EHJLQQLQJ
$OPD\HULVJD]LQJDWWKHULYHUDW³WKHWLPHRIVXQVHWSHUKDSVEHFDXVHDWWKDWWLPH
WKHVLQNLQJVXQZRXOGVSUHDGDJORZLQJJROGWLQJHRQWKHZDWHUVRIWKH3DQWDLDQG
$OPD\HU¶V WKRXJKWV ZHUH RIWHQ EXV\ ZLWK JROG´ $) $OPD\HU¶V GUHDPV RI
DFFXPXODWLRQ RI ZHDOWK DQG SRZHU DQG WKHQ VHWWOLQJ EDFN LQ ³$PVWHUGDP WKDW
HDUWKO\SDUDGLVHRIKLVGUHDPV´ZLWKKLVGDXJKWHUDUHDVLOOXVLRQDU\DVWKHJROGRI
WKHVHWWLQJVXQRQWKHIORRGHGULYHU$))RUHERGLQJO\³WKHUHZDVQRWLQJHRI
JROGRQLWWKLVHYHQLQJIRULWKDGEHHQVZROOHQE\WKHUDLQVDQGUROOHGDQDQJU\
DQG PXGG\ IORRG XQGHU KLV LQDWWHQWLYH H\HV´ $) 7KH ULYHU LQ IORRG DQG WKH
DEVHQFHRIWKHGHVLUHGVXQQ\JROGRQLWV\PEROL]HWKHYLUWXDOHQGRIWKHGHOXVLRQV
RIDZKLWH(XURSHDQWUDGHUDQGWKHLGHDOVKHUHSUHVHQWV$OPD\HU¶VPDQLDDQGWKH
IDOVLW\ RI WKH K\SRWKHVLV KH KDV EHHQ EUHG ZLWK FDQQRW DELGH E\ WKH UHDOLWLHV RI
QRQZKLWH ODQGVFDSH DW 6DPELU +LV LPDJLQDWLRQ DOZD\V WUDQVSRUWV KLP WR
$PVWHUGDP ³ZKHUH WKH SDUDGLVH RI (XURSH ZDV DZDLWLQJ WKH IXWXUH (DVWHUQ
PLOOLRQDLUHV´$)7KURXJKRXWWKHQRYHO$OPD\HULVVHHQWU\LQJKDUGWRUHDFK
DQG DWWDLQ WKH WUHDVXUH LQ WKH MXQJOH VR WKDW KH FRXOG UHVLGH LQ (XURSH &RQUDG
SUHVHQWVWKDWOLNHRWKHUVHOILVKZKLWHWUDGHUV$OPD\HUVWD\VDQGWULHVWRH[SORLWWKH
QRQZKLWHODQGIRUKLVSHUVRQDOEHQHILWDQGQRWIRUWKHJRRGRIWKHQDWLYHV
$OPD\HU KDWHV KLV QRQZKLWH ZLIH DQG WKH FRPSDQ\ RI WKH QRQZKLWHV +H
ZDQWV WR OHDYH WKH SODFH DV VRRQ DV KH DFKLHYHV KLV SHUVRQDO JRDOV (YHQ KLV
PDUULDJHLVVSXUUHGE\GUHDPVRIPDNLQJPRQH\+HPDUULHVWKHDGRSWHGGDXJKWHU
RI /LQJDUG LQ KRSH RI LQKHULWLQJ WKH ZHDOWK WKDW /LQJDUG ZRXOG JLYH WR WKH PDQ
ZKR ZRXOG PDUU\ KLV GDXJKWHU $OPD\HU EHOLHYHV ³/LQJDUG¶V PRQH\ ZDV 1LQD¶V
PRQH\LQDVHQVH´$,2$OPD\HUKDWHVWKHODG\DQGLVUHDG\WRNLOOKHUVR
WKDW KH FRXOG JHW ULG RI KHU ZKHQ KH JRHV EDFN WR VHWWOH LQ (XURSH ZLWK KLV
GDXJKWHU 0RUHRYHU ZKHQ KLV GDXJKWHU 1LQD FRPHV EDFN IURP 6LQJDSRUH
$OPD\HUWULHVKLVEHVWWKDWVKHGRHVQRWPHHWKHUPRWKHU$OPD\HU¶VKDWUHGIRUKLV
ZLIHLVVHHQLQKLVHIIRUWVWRNHHSWKH FKLOGDZD\IURPKHUPRWKHU1HLWKHUGRHV
$OPD\HUJLYHKLVZLIHWKHORYHDQGFDUHRIDKXVEDQGQRUGRHVKHOHWKHUUHOLVKKHU
PRWKHUKRRG%XWKLVGUHDPRILQKHULWLQJWKDWZHDOWKJHWVHFOLSVHGZLWKWKHIDLOXUH
RIKLVIRVWHUIDWKHULQODZ0RUHRYHU$OPD\HU¶VGUHDPVRIORFDWLQJWUHDVXUHZLWK
WKHKHOSRIWKHQDWLYHVKHKDWHVDUHDOVRVKDWWHUHGZKHQKLVGDXJKWHUUHIXVHVWREH
DSDUWRIKLVGUHDPV+LVRZQGDXJKWHUSUHIHUVKHUOLIHZLWKWKHSULPLWLYHFKLHIWDLQ
WKDQZLWKKLP
7KHIDLOXUHRIWKHUDFLDOVXSHULRULW\DQGUKHWRULFRIDGYDQFHPHQWFDQDOVREH
VHHQ LQ WKH FROODSVH RI /LQJDUG¶V HGLILFH DQG WKDW RI KLV DJHQW FXP VRQLQODZ
$OPD\HU /LQJDUG¶V RIILFH LV ZHOOIXUQLVKHG DQG $OPD\HU EHOLHYHV WKDW DOO WKH
³SDUDSKHUQDOLD>ZDV@QHFHVVDU\WRVXFFHVVIXOWUDGLQJ´$,26LQFHKHFDQQRW
PDNHDQ\XVHRIWKHRIILFHVRLWVRRQ³EHFDPHQHJOHFWHGOLNHDWHPSOHRIDQ
H[SORGHG VXSHUVWLWLRQ´ $,2 :KHQ $OPD\HU¶V ZLIH UHYHUWHG WR KHU ZLOG
QDWXUH ³$OPD\HU QRZ DQG DJDLQ KDG VRXJKW UHIXJHIURP KHU WKHUH´ $,2 :KHQ $OPD\HU FRPHV WR 6DPELU KH LQWHQGV WR NHHS D GD\ WR GD\ UHFRUG RI WKH
ULVLQJIRUWXQHLQDFFRXQWERRNV%XWDOOVLJQVRIFLYLOL]DWLRQOLJKWDQGNQRZOHGJH
JHW EXULHG XQGHU VKHHWV RI GXVW 7KLV LQGLFDWHV WKH PRUDO IDLOXUH RI D ZKLWH PDQ
7KH XVHOHVVQHVV RI $OPD\HU¶V RIILFH GHSLFWV WKH SRLQWOHVVQHVV DQG WKH IXWLOLW\ RI
WKH VLJQV RI WKH ZKLWH FLYLOL]DWLRQ $IWHU KDYLQJ ORVW ERWK KLV WUDGH DQG FRQWURO
RYHUWKHVHWWOHPHQW$OPD\HU IHHOVKRSHOHVVDQG GHSUHVVHG +HWHOOV /LQJDUGWKDW
KH KDV ORVW HYHU\WKLQJ DQG VD\V ³µ\RX EURXJKW PHKHUH PDGH PH \RXU SDUWQHU
DQGQRZZKHQHYHU\WKLQJLVJRQHWRWKHGHYLO±WKURXJK \RXUIDXOWPLQG \RX±
\RX WDON DERXW \RXU VKLS VKLS¶´ $,2 :LWK WKH SDVVDJH RI WLPH
$OPD\HU¶VGUHDPVGZLQGOHLQWKHVPRNHRIRSLXP$OPD\HU¶VIL[DWLRQUHVXOWVLQD
NLQG RI PHQWDO LQVWDELOLW\ DW WKH HQG $V D FRQVHTXHQFH WKH VKUHZG DQG GHYLRXV
$EGXOOD²DVSRUWUD\HGE\WKHDXWKRU²UHLJQVLQ6DPELU
0RUHRYHUOLNH.XUW]$OPD\HUWRRFRQVLGHUVKLPVHOIWREHWKHPDVWHURIWKH
ODQG DQG FDOOV WKH QDWLYHV KLV ³µRZQ SHRSOH¶´ $) %XW $OPD\HU GRHV QRW
SHUIRUP DQ\ DFWV RI GHFHQF\ DQG JUDFLRXVQHVV IRU WKH EHQHILW RI KLV ³µRZQ
SHRSOH¶´ RI WKH RWKHU UDFH $) 7KURXJK WKH ILJXUH RI $OPD\HU OLNH WKURXJK
RWKHUZKLWHSURWDJRQLVWV&RQUDGSUHVHQWVWKHEUHDNGRZQRIWKHZKLWHVXSHULRULW\
LQ QRQZKLWH ODQGV $OPD\HU DFNQRZOHGJHV WKDW KH FDPH WR WKH QRQZKLWH ODQG
PHUHO\ WR IXOILO KLV RZQ GUHDPV RI ZHDOWK DQG SRZHU +H RQO\ SURIHVVHV WKH
LGHRORJ\RIDGYDQFHPHQWRIKLVFRXQWU\DQGJUDGXDOO\EHFRPHVWKHV\PERORIWKH
ORVVRIWKLVVXSHULRULW\7KHWUDGHUZKRZDVWRODERXUVHOIOHVVO\IRUWKHVRFDOOHG
LQIHULRU LV FRQFHUQHG RQO\ ZLWK KLV SHUVRQDO SURILWV 7KH VXSSRVHGO\ QREOH
DGYHQWXUHUDQGDJRGO\DQGGHYRXWVHWWOHUKDVQRWEHHQDEOHWRPDLQWDLQWKHPRUDO
PLVVLRQRIHQOLJKWHQLQJWKHQRQZKLWHODQGV$OPD\HU¶VYROXQWDU\H[LOHKDVEHHQ
PRWLYDWHGE\DGUHDPRIDQHDVLHUOLIHDQGPDNLQJVXEVWDQWLDOSURILW
$OPD\HU LV QRW WKH RQO\ GUHDPHU $QRWKHU HQYR\ RI WKH ZKLWH VXSHULRULW\
:LOOHPVDOVRIDLOVDQGUHSUHVHQWVWKHIDLOXUHRIUDFLDOVXSUHPDF\DQGLWVLGHRORJ\
RISURJUHVV7KHLQLWLDOSDJHVRI$Q2XWFDVWRIWKH,VODQGVVWDWHWKDW:LOOHPVKDV
GUHDPVDERXWKLVIXWXUHDQGKLVGUHDPVUHPDLQXQIXOILOOHGDQGXQVXFFHVVIXOHYHQ
DIWHU KLV GHFLVLRQ WR IROORZ WKH SDWK RI KRQHVW\ WLOO WKH HQG RI KLV OLIH :LOOHPV
³ZDONHG RQ KRPHZDUG ZHDYLQJ WKH VSOHQGLG ZHE RI KLV IXWXUH 7KH URDG WR KLV
JUHDWQHVVOD\SODLQO\EHIRUHKLVH\HVVWUDLJKWDQGVKLQQLQJZLWKRXWDQ\ REVWDFOH
WKDWKHFRXOGVHH´$2,6RWKLVQRYHOWRROLNH$OPD\HU¶V)ROO\EHJLQVZLWK
WKHZHERI:LOOHPV¶GUHDPVZKLFKKHH[SHFWVWRUHDOLVH
:LOOHPV ORYHV WR GRPLQDWH RYHU KLV KDOIFDVWH ZLIH KHU IDPLO\ DQG RWKHU
QDWLYHVZKRVH
DGPLUDWLRQZDVWKHJUHDWOX[XU\RIKLVOLIH,WURXQGHGDQGFRPSOHWHG
KLVH[LVWHQFHLQDSHUSHWXDODVVXUDQFHRIXQTXHVWLRQHGVXSHULRULW\+H
ORYHG WR EUHDWKH WKH FRDUVH LQFHQVH WKH\ RIIHUHG EHIRUH WKH VKULQH RI
WKHVXFFHVVIXOZKLWHPDQWKHPDQWKDWKDGGRQHWKHPWKHKRQRXUWR
PDUU\WKHLUGDXJKWHUVLVWHUFRXVLQWKHULVLQJPDQVXUHWRFOLPEYHU\
KLJKWKHFRQILGHQWLDOFOHUNRI+XGLJ&R$2,
:LOOHPV GHYLDWHV IURP WKH ³QDUURZ SDWK RI KLV SHFXOLDU KRQHVW\´ DQG \HW WKLV
FRQILGHQWLDOFOHUNRI+XGLJ¶V&RPSDQ\IHHOVDQ³HQRUPRXVO\UHPRWHVXSHULRULW\´
$2,&RQUDGWHOOVWKDW:LOOHPVKRSHVWROHDGKLVOLIHHQMR\LQJDSRVLWLRQ
RI SRZHU DQG DXWKRULW\ RQFH KH KDV FRPH EDFN WR WKH SDWK RI KRQHVW\ :LOOHPV
SRQGHUVRYHU³WKHTXLHWGHDOLQRSLXPWKHLOOHJDOWUDIILFLQJXQSRZGHUWKHJUHDW
DIIDLURIVPXJJOHGILUHDUPVWKHGLIILFXOWEXVLQHVVRIWKH5DMDKRI*RDN´$2,
7KH ³RSSRUWXQLW\ DQG WHPSWDWLRQ´ RI WUDQVKLSSLQJ RSLXP ZDV ³WRR PXFK IRU
:LOOHPV DQG XQGHU WKH SUHVVXUH RI VXGGHQ QHFHVVLW\ KH DEXVHG WKDW WUXVW ZKLFK
ZDVKLVSULGHWKHSHUSHWXDOVLJQRIKLVFOHYHUQHVVDQGDORDGWRRKHDY\IRUKLPWR
FDUU\´$2,+HWKLQNVWKDWDIWHUDVKRUWVSDQRIGLVKRQHVWOLIH³QRWKLQJZRXOG
EH FKDQJHG WKDW KH ZRXOG EH DEOH DV KHUHWRIRUH WR W\UDQQL]H JRRGKXPRXUHGO\
RYHUKLVKDOIFDVWHZLIH WRQRWLFHZLWKWHQGHUFRQWHPSWKLVSDOH \HOORZ FKLOGWR
SDWURQL]HORIWLO\KLVGDUNVNLQQHGEURWKHULQODZ´RQFHDJDLQ$2,
:LOOHPV¶ DSSURDFK WRZDUGV KLV GHSHQGHQWV DQG IDPLO\ LV UHSUHVHQWDWLYH RI
WKH DWWLWXGH RI KLV UDFH +H VHHV QDWLYHV DV ³D QXPHURXV DQG DQ XQFOHDQ FURZG´
$2, /LNH DQ\ SURXG NLQJ :LOOHPV NHHSV WKH QDWLYHV ³DW DUP¶V OHQJWK DQG
HYHQ IXUWKHU RII SHUKDSV KDYLQJ QR LOOXVLRQV DV WR WKHLU ZRUWK´ $2, +LV
DWWLWXGHWRZDUGVWKHQDWLYHVGHPRQVWUDWHVKLVEHOLHIRIEHLQJDJUHDWPDQZKRKDV
RQ KLV VKRXOGHUV WKH UHVSRQVLELOLW\ RI WKH PXOWLWXGH +H KDV EHFRPH WKHLU ZKLWH
*RGWKHSURYLGHUWKH%HQHYROHQW$OPLJKW\DQGWKH³SURYLGHQFH´IRUKHSURYLGHV
WKHP IRRG DQG FORWKLQJ DQG WKLV IDFW FRQYLQFHV KLP ³WKDW VKRXOG KH FORVH KLV
KDQGDOOWKRVHDGPLULQJKXPDQEHLQJVZRXOGVWDUYH´DQGWKDW³WKH\OLYHGQRZE\
WKH JUDFH RI KLV ZLOO´ $2, :LOOHPV UHOLVKHV WKH SRZHU KH HQMR\V RYHU WKH
2WKHUVDQGKH³NHSWWKHPVLQJLQJKLVSUDLVHV´$2,:LOOHPVEHOLHYHVWKDWWKH
QRQZKLWHVFRXOGQHYHUEHGHHPHGHTXDOVEHFDXVHRIWKHLUVKDEELQHVVDQGVTXDORU
7KHGLUWDQGUXEELVKLQWKHQRQZKLWHWHUULWRU\HQKDQFHVWKHLGHDVRIVXSHULRULW\RI
WKHZKLWHPDQ7KHJRYHUQLQJIDFWRULQ:LOOHPVLVWKHVHQVHRIVXSHULRULW\DQGWKH
SRVLWLRQRIHOHYDWLRQIURPZKHUHKHFDQGROHRXWDOPVWRKLVZLIHDQGKHUIDPLO\
:KDWOHQGV:LOOHPVDVHQVHRILPSRUWDQFHLVQRWDQ\LQWULQVLFTXDOLW\ZLWKLQKLP
EXWWKHIDNHDFWVRIFRPSDVVLRQWKDWKHFRQVWDQWO\SHUIRUPVIRUKLVDWWHQGDQWVWR
IRUFH WKHP WR GHSHQG XSRQ KLP /LNH $OPD\HU :LOOHPV PDUULHV -RDQQD IRU WKH
ZHDOWK WKDW VKH ZRXOG LQKHULW IURP +XGLJ +LV KRXVH LV D ZHGGLQJ JLIW IURP
+XGLJWKHIRVWHUIDWKHURIKLVZLIH+HKDVKLJKKRSHVRIKLVJDLQLQJDSRVLWLRQLQ
WKHRIILFHRI+XGLJ:LOOHPV³EHOLHYHGLQKLVJHQLXVDQGNQRZOHGJHRIWKHZRUOG´
DQGZKHQKHWDONVWRSHRSOHKH³H[SRXQGHGKLVWKHRU\RIVXFFHVV´$2,
%XW RQFH :LOOHPV ORVHV KLV MRE DQG EHFRPHV D ZRUWKOHVV /HRQDUG ZKR
XVHGWRGHSHQGXSRQ:LOOHPVIRUILQDQFLDOKHOSFDOOVKLPDVDYDJHDQGWKUHDWHQV
KLPWROHDYHKLVVLVWHU:LOOHPV¶ZLIHDFFXVHVKLPRIEHLQJD³PDQIURPQRZKHUH
DYDJDERQG´$2,1RZWR:LOOHPV³WKHFRPPHUFLDODFWLYLW\RIWKDWH[LVWHQFH
VHHPHG IDU RII LUUHSDUDEO\ ORVW EXULHG RXW RI VLJKW XQGHU WKH UXLQV RI KLV SDVW
VXFFHVV ² QRZ JRQH IURP KLP EH\RQG WKH SRVVLELOLW\RI UHGHPSWLRQ´ $2, &RQWUDVWLQJKLVOLIHZLWKWKDWRIWKRVHDURXQGKLP:LOOHPVWKLQNVWKDW³HYHU\WKLQJ
VWLUUHGPRYHGVZHSWE\LQDUXVKWKHHDUWKXQGHUKLVIHHWDQGWKHKHDYHQVDERYH
KLV KHDG 7KH YHU\ VDYDJHV DURXQG KLP VWURYH VWUXJJOHG IRXJKW ZRUNHG ² LI
RQO\WRSURORQJDPLVHUDEOHH[LVWHQFHEXWWKH\OLYHGWKH\OLYHG$QGLWZDVRQO\
KLPVHOI WKDW VHHPHG WR EH OHIW RXWVLGH WKH VFKHPH RI FUHDWLRQ LQ D KRSHOHVV
LPPRELOLW\ILOOHGZLWKWRUPHQWLQJDQJHUDQGZLWKHYHUVWLQJLQJUHJUHW´$2,
3HUFHLYLQJKLPVHOIDFDSWLYHYLFWLP:LOOHPV³PHDVXUHGGLVPDOO\WKHGHSWKRIKLV
GHJUDGDWLRQ+H±DZKLWHPDQWKHDGPLUHGRIWKHZKLWHPHQZDVKHOGE\WKRVH
PLVHUDEOH VDYDJHV ZKRVH WRRO KH ZDV DERXW WR EHFRPH +H IHOW IRU WKHP DOO WKH
KDWHRIKLVUDFHRIKLVPRUDOLW\RIKLVLQWHOOLJHQFH+HORRNHGXSRQKLPVHOIZLWK
GLVPD\ DQG SLW\ KLV FDSWLYLW\ VHHPHG PRUH FRPSOHWH WHUULEOH DQG ILQDO ±
ZLWKRXWWKHKRSHRIDQ\UHGHPSWLRQ´$2,:LOOHPVRQFHILOOHGZLWKUDFLDO
VXSUHPDF\QRZVWDQGVDVVXSHUIOXRXVZRUQRXWUHGXQGDQWEHZLOGHUHGDQREMHFW
RIVFRUQDQGDV³VXVSLFLRXVIRRO´DQG³DPDVTXHUDGLQJVSHFWUH´XVHOHVVWRDOO$2,
7KH LVRODWLRQ RI WKH UXOHU IURP WKH UXOHG WKH H[HUFLVH RI DXWRFUDF\ DQG
WKH SULGH RI KHJHPRQ\ DUH DQ LQWHJUDO SDUW RI WKH FRORQLDO H[SHULHQFH %XW WKH
GHSLFWLRQ RI :LOOHPV EULQJV RXW &RQUDG¶V DQWDJRQLVP WR K\SRFULV\ RI
LPSHULDOLVP $IWHU KLV IDLOXUH LW LV WKURXJK :LOOHPV WKDW WKH VHQVH RI UDFLDO
VXSHULRULW\ FDQ EH VHHQ ³VWXPEOLQJ RQ KDUG DQG FUDFNHG HDUWK´ RI WKH QRQZKLWH
ODQGV$2,5DFLDOVXSHULRULW\DQGWKHLGHRORJ\RISURJUHVVOLNH:LOOHPVKDYH
WXUQHG VLOHQW FUXVKHG ZUHFNHG DOZD\V VXUURXQGHG ZLWK WKH IHDU RI EHLQJ
VZDOORZHGXSE\DQHQRUPRXVIULJKWHQLQJDWURFLRXVDQGLPSDVVDEOHVWLOOQHVVRI
WKHQRQZKLWHODQGV,Q&RQUDG¶VXQLYHUVH³(XURSHGRHVQRWPDQLIHVWLWVHOIDVWKH
YLWDO IRUFH RI SURJUHVV SURSRVHG E\ LPSHULDOLVW SURSDJDQGD EXW DV WKH SDUHQW RI
GHJHQHUDWHSURJHQ\RIVRUGLGDPELWLRQVSXUVXHGE\FRUUXSWKXPDQDJHQWV´3DUU\
&RQUDGULSVDSDUWWKHWKLQYHQHHURIFLYLOL]DWLRQWRXQHDUWKWKHVDYDJHU\WKDW
OLHVEHORZWKHVNLQRIHYHU\FLYLOL]HGDGYHQWXUHUDJHQWDQGWUDGHU
$W WKH EHJLQQLQJ RI/RUG -LP -LP DOVR UHSUHVHQWV WKH YDOXHV DQG LGHDOV DV
SURPRWHGE\WKHFRORQLDOSRZHUV+HVWDQGVIRUWKHYDJXHRUJDQL]DWLRQRILPSHULDO
YDOXHV %XW ODWHU -LP¶V IDLOXUH DQG KLV GLVLQWHJUDWLRQ LQ KLV YRFDWLRQ DQG OLIH
EHFRPHV DQ DGHTXDWH FRQILUPDWLRQ RI LPSHUIHFWLRQ DQG XQUHOLDELOLW\ RI WKHVH
GRFWULQHV -LP ZDQWV WR FKDQJH WKH ZRUOG LQWR DQ $UFDGLD ZKHUH KLV KHURLVP LV
YDOXHG (YHQ DIWHU KLV ILUVW IDLOXUH RQ WKH VKLS 3DWQD KH SHUVLVWV ZLWK WKH VDPH
LGHDOVDQGKHKDVWRIDFHDQRWKHUIDLOXUHLQ3DWXVDQ$WERWKSODFHVKHLVXQDEOHWR
VHH WKH LPSUDFWLFDOLW\ RI KLV LGHDOV 7KH ERRNV IURP ZKHUH KH WDNHV KLV
LQVSLUDWLRQ VKRZ WKH XQTXHVWLRQLQJ FRXUDJH DQG KRQRXU RI WKH (XURSHDQ KHURHV
DQG-LPEHFRPHVDYLFWLPRIWKHVHURPDQWLFLGHDOV2Q3DWQDKHGUHDPV
2QWKHORZHUGHFNLQWKHEDEHORIWZRKXQGUHGYRLFHVKHZRXOGIRUJHW
KLPVHOIDQGEHIRUHKDQGOLYHLQKLVPLQGWKHVHDOLIHRIOLJKWOLWHUDWXUH
+HVDZKLPVHOIVDYLQJSHRSOHIURPVLQNLQJVKLSVFXWWLQJDZD\PDVWV
LQ D KXUUwFDQH VZLPPLQJ WKURXJK D VXUI ZLWK D OLQH RU DV D ORQHO\
FDVWDZD\AEDUHIRRWHGDQGKDOIQDNHGZDONLQJRQXQFRYHUHGUHHIVDQG
VHDUFK RI VKHOOILVK WR VWDYH RII VWDUYDWLRQ +H FRQIURQWHG VDYDJHV RQ
WURSLFDOVKRUHVTXHOOHGPXWLQLHVRQWKHKLJKVHDVDQGLQDVPDOOERDW
XSRQ WKH RFHDQ NHSW XS WKH KHDUWV RI GHVSDLULQJ PHQ ± DOZD\V DQ
H[DPSOH RI GHYRWLRQ WR GXW\ DQG DV XQIOLQFKLQJ DV D KHUR LQ D ERRN
/-
-LP¶VIDLOXUHWROLYHDVDQLPSHULDOKHURWKURZVOLJKWRQWKHLQFRQJUXLW\ EHWZHHQ
ZKDW WKH VHOIVW\OHG LPSHULDO FLYLOL]DWLRQ LV VKRZQ WR EH LQ WKH OLWHUDWXUH LW
SURGXFHV DQG ZKDW LPSHULDO DJHQWV DFWXDOO\ GR LQ WKH QRQZKLWH ODQGV ,Q /RUG
-LPOLNHLQ+HDUWRI'DUNQHVV&RQUDGGRHVQRW SUHVHQWWKHFRORQLDOSURWDJRQLVW
SRVVHVVLQJDQDXUDRIYDORXUDQGKRQRXU+HGRHVQRWMXVWLI\KLVPLVVLRQ&RQUDG
VHHPVWRJXLGHKLVUHDGHUVWRPRFNDWWKHGUHDPVRIKLVSURWDJRQLVWVVLQFHWKH\DUH
EDVHGRQOLJKWOLWHUDWXUHVXSSRVHGVXSHULRULW\DQGIDOVHLGHRORJ\
$IWHUWKH3DWQDLQFLGHQW-LPJHWVDVHFRQGRSSRUWXQLW\WRSURYHKLPVHOILQ
WKH0DOD\$UFKLSHODJR$JDLQKHKDVD\HDUQLQJWRLQVWLWXWHDQLG\OOLFFRPPXQLW\
DQG OHQG D KDQG WR WKH QDWLYHV LQ 3DWXVDQ 3HUFKDQFH KH WDNHV WKLV RSHQLQJ DV
H[SLDWLRQIRUWKHVHQWLPHQWRIJXLOWRIKLVHDUOLHUWUHDFKHU\WRWKHSLOJULPVRQWKH
3DWQD-LPDVVLVWVWKHEURZEHDWHQ%XJLVOHGE\'RUDPLQDJDLQVWWKHW\UDQQ\RI
WKH 0DOD\V KHDGHG E\ 5DMDK 7XQNX $OODQJ ,Q WKH EHJLQQLQJ -LP LV DEOH WR
RUJDQL]H D SROLWLFDOO\ DQG VRFLDOO\ ZHOOEXLOW DQG DSSDUHQWO\ SHUIHFW VRFLHW\ ,Q
3DWXVDQ -LP VRRQ DFTXLUHV WKH VWDWXV RI /RUG -LP DQG LV UHVSHFWHG E\ WKH
LQKDELWDQWV KH KDV KHOSHG -LP UHOLVKHV WKH SRVLWLRQ WKDW KH KDV DWWDLQHG 0DUORZ
WHOOVWKHUHDGHUVWKDW-LP³ORRNHGZLWKDQRZQHU¶VH\HDWWKHSHDFHRIWKHHYHQLQJ
DWWKHULYHUDWWKHKRXVHVDWWKHHYHUODVWLQJOLIHRIWKHIRUHVWVDWWKHOLIHRIWKHROG
PDQNLQG DW WKH VHFUHWV RI WKH ODQG DW WKH SULGH RI KLV RZQ KHDUW ´ /- +HEHFRPHVWKHKHDGRIWKH%XJLVDQGHQMR\VWKHIDLWKIDPHDQGIULHQGVKLS
RI 'RUDPLQ¶V VRQ 'DLQ -LP LV ³µVDWLVILHG QHDUO\¶´ ZLWK KLV VLWXDWLRQ DQG
SRVLWLRQ /- /LNH RWKHU ZKLWHV KH ORYHV WKH SRZHU WKDW KH KDV DWWDLQHG
:KHQ0DUORZWHOOV-LPWRJREDFNWRWKHZKLWHVRFLHW\ZLWKKLP-LPORRNVDWWKH
VXUURXQGLQJV DQG ERDVWV WR 0DUORZ ³WKHUH¶V QRW RQH KRXVH ZKHUH , DP QRW
WUXVWHG /HDYH 1R P\ ZRUG 'RQ¶W ODXJK , PXVW IHHO HYHU\GD\ ±
HYHU\GD\HYHU\WLPH,RSHQP\H\HV±WKDW,DPWUXVWHG±WKDWQRERG\KDVDULJKW
± 'RQ¶W \RX NQRZ" /HDYH )RU ZKHUH" :KDW IRU" 7R JHW ZKDW"´ /- 7KH
EDVLFQHFHVVLWLHVRIWKHZKLWHPDQ¶VOLIHDUHWRHQMR\SRZHURYHUWKH2WKHUVDQGVR
GRHV -LP UHOLVK WKH DXWKRULW\ 6LQFH KH FDQQRW DWWDLQ LW LQ KLV RZQ ODQG VR KH
RFFXSLHVDSODFHZKHUHKHWKLQNVWKDWSHRSOHDUHLQIHULRUWRKLP7KHSRZHURQFH
WDVWHGFDQQRWEHIRUVDNHQLVWUXHIRUDOOWKHLPSHULDODJHQWVRI&RQUDG
7KRXJK-LP¶VUDFHLVVXSSRVHGWREULQJOLJKWDQGFLYLOL]DWLRQWRWKHVDYDJHV
\HW KH IDLOV WR GLVWLQJXLVK %URZQ DV DQ HQHP\ -LP JLYHV %URZQ D FOHDU URDG
PDNLQJKLPVHOIDQGKLV PHQXWWHUO\GHIHQFHOHVV 8QDEOHWRVHHWKURXJK%URZQ¶V
GXSOLFLW\-LPIDLOVWRSHUFHLYHWKHUDGLFDOHYLOLQ%URZQ¶VQDWXUH+HLVHUURQHRXV
LQKLVEHOLHIWKDWKHKDVEHHQDEOHWRUHDG%URZQ¶VKHDUW %URZQSOD\VXSRQ-LP¶V
ZKLWHQHVVLQRUGHUWRVHHNDFOHDUURDG$OPRVWDOORI-LP¶VSHRSOHGLVDJUHHZLWK
KLVGHFLVLRQWROHW%URZQDQGKLVPHQJREXW-LPWKLQNVWKDWWKHYLOODLQRXV%URZQ
DQGKLVPHQDUHQRWDOWRJHWKHUUHVSRQVLEOHIRUWKHLUSUHYLRXVDFWLRQV+HEHOLHYHV
WKDWWKH\GHVHUYHDVHFRQGFKDQFH,URQLFDOO\KLVRSLQLRQFRLQFLGHVZLWKKLVRZQ
YLHZ RI KLPVHOI 6LQFH -LP QHHGHG D VHFRQG FKDQFH LQ KLV OLIH VR KH ZDQWV WR
VKRZHU LW XSRQ WKH RWKHU ZKLWH PDQ DOVR +H JLYHV DVVXUDQFH WR WKH QDWLYHV DQG
VXSSOHPHQWVKLVGHFODUDWLRQZLWKWKHNLQGRISURPLVHVWKDWFRPSHOWKHPWRDFFHSW
KLVFRXUVHRIDFWLRQ
-LP SOHGJHV WKDW ³KH ZDV UHDG\ WR DQVZHU ZLWK KLV OLIH IRU DQ\ KDUP WKDW
VKRXOG FRPH WR WKHP LI WKH ZKLWH ZLWK EHDUGV ZHUH DOORZHG WR UHWLUH´ /- -LPLVXQDEOHWRXQGHUVWDQG%URZQ¶VWUHDFKHU\LQSOD\LQJXSRQKLVOR\DOW\WRWKH
FRORXURIWKHOLJKWVNLQ5HFRJQLVLQJWKHYLUWXHRIEHLQJDSDUWRIWKHUXOLQJQDWLRQ
DQGEHORQJLQJWRWKHLQWHOOLJHQWDQGFLYLOL]HGUDFHLWVHHPVWKDW-LPEHOLHYHVWKDW
KHWRRKDVWKHSRWHQWLDOWRGHWHFWP\VWHU\DQGGHVWUXFWLYHQHVVLQWKHHQHP\/LNH
D FRORQL]HU KH EHOLHYHV WKDW KH KDV WKH FDSDFLW\ WR FRPSUHKHQG WKH
LQFRPSUHKHQVLEOH -LP LV XQGHU WKH LPSUHVVLRQ WKDWKH FRXOG UHDFK WKH GHSWKV RI
WKHFKDRVRIWKHKXPDQPLQGDQGWKHSUHVHQFHRIGDUNQHVVLQKXPDQVRXO'XHWR
VXFKSUHVXPHGDELOLWLHV-LPGHFLGHVWROHW%URZQDQGKLVPHQOHDYH3DWXVDQ%XW
WKHHQGRIWKHQRYHOVKRZVWKDW-LPKDVOHDUQWOLWWOHDERXWKXPDQQDWXUH+HLVDQ
HSLWRPHRIIDLOXUH-LPEHFRPHVDYLFWLPRIKLVDSSDUHQWVXSHULRUVHOIDZDUHQHVV
-LP¶VILUVWSOHGJHRIRYHUFRPLQJ6KHULII$OLKDGOHGWRDJORULRXVVXFFHVVEXWWKH
VHFRQGOHDGVWRFRPSOHWHGHIHDW-LPIDLOVWRVKLHOG'RUDPLQDQGKLVSHRSOHZKR
KDYH VKRZQ EOLQG GHYRWLRQ LQ KLP DJDLQVW WKH PDOHYROHQW SORW RI %URZQ -LP
FRQIHUV IHOORZVKLS RQ DQRWKHU ZKLWH PDQ ZKLFK HQGV XS LQ YHULI\LQJ KLV
LQHIIHFWLYHQHVV XVHOHVVQHVV LQHSWQHVV DQG V\PEROLFDOO\ LQ FRQVHTXHQFH WKH
LQHIILFLHQFLHV RI WKH V\VWHP RI EHOLHIV EDVHG RQ EULQJLQJ DERXW OLJKW WR WKH
XQFLYLOL]HG 7KH SUHVHQW EOXQGHU ZKHQ FOXEEHG ZLWK WKH PLVWDNHV RI -LP¶V
SUHYLRXVOLIHLQGLFDWHVWKHXQDOWHUDEOHVWXEERUQFKDUDFWHURIWKHZKLWHGRPLQDWRU
-LPPD\KDYHDFNQRZOHGJHGWKHUHVSRQVLELOLW\RIKLVPLVWDNHV\HWKLVGHDWKPD\
RQO\ EH VHHQ DV D OLPLWHG YLFWRU\ $V D UHVXOW WKH ODFN RI IRUHWKRXJKW RI WKH VR
FDOOHGHQOLJKWHQHGZKLWHPDQEULQJVDERXWXWWHUGDUNQHVVWR'RUDPLQDQGKLVWULEH
7KH WKHPDWLF SDWWHUQ RI H[SRVLWLRQ RI WKH PDQLSXODWLYH DQG H[SORLWDWLYH
QDWXUHRIWKH ZKLWHH[LOHVUHSHDWVLQDOPRVWDOOWKHQRYHOVRI&RQUDG7KHZKLWH
SURWDJRQLVWV EUHDN LQWR WKH QRQZKLWH ODQGV IRU WKHLU RZQ EHQHILW 7KH\ DUH
HQJDJHG LQ WKH H[SORLWDWLRQ RI WKH ODQG DQG LWV LQKDELWDQWV GLUHFWO\ RU LQGLUHFWO\
DQGDVDUHVXOWWKHQDWLYHVKDYHWRHQGXUHDQJXLVKDQGWRUWXUH,Q9LFWRU\DVZHOO
WKH H[SORLWDWLRQ DQG PLVWUHDWPHQW RI WKH QRQZKLWHODQGV DQG QDWLYHV WDNH SODFH
6DPEXUDQ LV D FRDO RXWVWDWLRQ DGPLQLVWHUHG E\ DQ (QJOLVK'XWFK &RUSRUDWLRQ
(YHQ DIWHU WKH OLTXLGDWLRQ RI WKH &RPSDQ\ +H\VW WKH PDQDJHU RI WKH 7URSLFDO
%HOW &RDO &RPSDQ\ KDV EHHQ JLYHQ WKH WDVN WRGLJ RXW WKH LVODQG¶V UHVRXUFHV RI
FRDO DQG VKLS WKHP WR (XURSH $V LW LV QRW PHUHO\ D FRDOLQJVWDWLRQ VR WKH
&RPSDQ\¶VREMHFWLYHLVWRJHWKROGRIDOOWKHRXWFURSVRQWKHWURSLFDOLVODQGVDQG
H[SORLWWKHQDWLYHV
-XVW DV .XUW] LQ +HDUW RI 'DUNQHVV JRHV IRU ZDQGHULQJV LQ WKH &RQJR
MXQJOHWRORFDWHLYRU\VLPLODUO\+H\VWJRHVRQMRXUQH\VWRWUDFHWKHRXWFURSRQWKH
LVODQG &RQUDG VHHPV WR GHVFULEH WKDW WKRXJK 9LFWRU\ LV QRW D GLUHFW DWWDFN RQ
LPSHULDOIRUFHV\HWWKHDXWKRUZDQWVWRWDONDERXWWKHHIIHFWRIWKHSUHVHQFHRIWKH
ZKLWHV RQ WKH QRQZKLWH LVODQG $IWHU WKH OLTXLGDWLRQ RI WKH &RPSDQ\ &RQUDG
VD\V
2QWKHQLJKWVRIIXOOPRRQWKHVLOHQFHDURXQG6DPEXUDQ±WKHµ5RXQG
,VODQG¶ RI WKH FKDUWV ± ZDV GD]]OLQJ DQG LQ WKH IORRG RI FORG OLJKW
+H\VWFRXOGVHHKLVLPPHGLDWHVXUURXQGLQJVZKLFKKDGWKHDVSHFWRI
DQ DEDQGRQHG VHWWOHPHQW LQYDGHG E\ WKH MXQJOH YDJXH URRIV DERYH
ORZ YHJHWDWLRQ EURNHQ VKDGRZV RI EDPERR IHQFHV LQ WKH VKHHQ RI
ORQJ JUDVV VRPHWKLQJ OLNH DQ RYHUJURZQ ELW RI URDG VODQWLQJ DPRQJ
UDJJHG WKLFNHWV WRZDUGV WKH VKRUH RQO\ D FRXSOH RI KXQGUHG \DUGV
DZD\ZLWKDEODFNMHWW\ DQGDPRXQGRIVRPHVRUWTXLWHLQN\RQLWV
XQOLJKWHG VLGH %XW WKH PRVW FRQVSLFXRXV REMHFW ZDV D JLJDQWLF
EODFNERDUG UDLVHG RQ WZR SRVWV DQG SUHVHQWLQJ WR +H\VW ZKHQ WKH
PRRQ JRW RYHU WKDW VLGH WKH ZKLWH OHWWHUV µ7 % & &R¶ LQ D URZ DW
OHDVW WZR IHHW KLJK 7KHVH ZHUH WKH LQLWLDOV RI WKH 7URSLFDO %HOW &RDO
&RPSDQ\KLVHPSOR\HUV±KLVODWHHPSOR\HUVWREHSUHFLVH9
$V.XUW]LQ&RQJRDQG-LPLQ3DWXVDQVLPLODUO\LQ6DPEXUDQZHKDYH+H\VWZKR
LVSUHVHQWHGWRWKHUHDGHUVDVWKHUHSUHVHQWDWLYHRI(XURSHDQGWKHSURPRWHURILWV
FRPPHUFLDODIIDLUVLQWKHQRQZKLWHUHJLRQV$OWKRXJK+H\VWGRHVQRWLQGXOJHLQ
WKH H[SORLWDWLRQ RI WKH QDWLYHV DV GLUHFWO\ DV .XUW] \HW WKH SXUSRVH RI ERWK WKH
SHRSOH LQ WKH WZR QRYHOV LV VLPLODU 7KHLU LQWHQWLRQ LV WR PDNH WKHLU QDWLYH
FRXQWULHVULFKZLWKWKHUHVRXUFHVGLVFRYHUHGLQWKHQRQZKLWHODQGV2WKHUWKDQWKH
GLVHQFKDQWPHQWZLWKKLVPRWKHUODQG+H\VWUHVLGHVLQWKHQRQZKLWHODQGVWRWHDU
LWVWUHDVXUHDQGWRVKLSLWWRWKHZKLWHODQGV
(DUO\LQWKHQDUUDWLYHWKHQRYHO¶VSURWDJRQLVWLVLQWURGXFHGWRWKHUHDGHUVDV
VRPHRQHZKRLVHQFKDQWHGZLWKWKHEHDXW\RIOLIHLQWKH0DOD\DLVODQGV$IWHUWKH
OLTXLGDWLRQRIWKH7URSLFDO%HOW&RDO&RPSDQ\+H\VW¶VYRFDWLRQDVD³PDQDJHULQ
WKHWURSLFV´HQGVEXWKHGRHVQRWOHDYHWKHLVODQG9+HKLPVHOIVD\V³,DP
HQFKDQWHGZLWKWKHVHLVODQGV´97KHQDUUDWRUVD\V
+H ZKRP ZH XVHG WR UHIHU WR DV WKH (QFKDQWHG +H\VW ZDV VXIIHULQJ
IURP WKRURXJK GLVHQFKDQWPHQW 1RW ZLWK WKH LVODQGV KRZHYHU 7KH
$UFKLSHODJR KDV D ODVWLQJ IDVFLQDWLRQ ,W LV QRW HDV\ WR VKDNH RII WKH
VSHOORILVODQGOLIH+H\VWZDVGLVHQFKDQWHGZLWKOLIHDVDZKROH+H
KDGQRLQWHQWLRQWROHDYHWKHPHYHU9
+H\VW GRHV QRW ZDQW WR JR EDFN WR WKH ZKLWH ZRUOG 8QOLNH .XUW] $OPD\HU DQG
:LOOHPV ZH QHYHU VHH +H\VW LQWHUHVWHG LQ PDNLQJ SHUVRQDO SURILWV +H\VW LV
GLIIHUHQW IURP -LP DV ZHOO -LP ZDQWV WR EULQJ DERXW SHDFH LQ 3DWXVDQ DQG IHHOV
SURXG WR VHH WKH QDWLYHV¶ GHSHQGHQFH RQ KLP %XW +H\VW LV QRW LQYROYHG LQ D
UHODWLRQVKLSRIHFRQRPLFRUSROLWLFDOH[SORLWDWLRQZLWKDQ\WULEHVRIWKH 0DOD\DQ
LVODQGV7KHVHLVODQGVDUHSHUKDSVQRWDVFRQILQLQJFKDOOHQJLQJRUGLVHQFKDQWLQJ
DVLVKLVPRWKHUODQG%XW+H\VWWKHH[LOHDGKHUHVWRKLVKLVWRU\DVKHLVQRWRYHU
DQGGRQHZLWKWKHVHUPRQL]LQJRIKLVIDWKHU7KRXJK+H\VWUHFRJQL]HVKLPVHOIDV
DQpPLJUpDQGDVDUHORFDWHGDQGUHVHWWOHGEHLQJ\HWKHGRHVQRWZDQWWRPRYHWR
WKHFRXQWU\RIWKHZKLWHVSHUPDQHQWO\+H\VWPD\KDYHEURXJKWXSRQKLPVHOIDQ
HVWUDQJHPHQW D UXSWXUH DQG UHPRWHQHVV IURP WKH ZKLWH ZRUOG EXW KH KDV QRW
WRWDOO\IRUVDNHQLW+HOLYHVZLWKWKHIDPLOLDUREMHFWVRIKLVSDVWOLNHKLVIDWKHU¶V
ERRNV KLV SRUWUDLW DQG RWKHU GRPHVWLF LWHPV +H GRHV QRW EHFRPH RQH RI WKH
QDWLYHVDPRQJVWZKRPKHOLYHV7KHUHDGHUVIHHOWKDW+H\VWPD\QRWKDYHFRPHWR
WKH QRQZKLWH ODQGV IRU H[SORLWDWLRQ EXW KH KDV DOVR QRW EHHQ DEOH WR GHWDFK
KLPVHOIIURPKLVPRWKHUFRXQWU\ZKHUHKH JRHV VRPHWLPHV&RPSOHWHQHXWUDOLW\
GHWDFKPHQW DQG DORRIQHVV DUH LPSRVVLEOH WR EH DFKLHYHG IRU D ZKLWH PDQ 7KH
HQYR\RIUDFLDOVXSHULRULW\ZRXOGQHYHUEHDEOHWRLGHQWLI\HQWLUHO\ZLWKWKHQRQ
ZKLWH ODQGV ,Q 9LFWRU\ &RQUDG FRQWLQXHV WR FRQGHPQ WKH ZHVWHUQHU¶V GHVLUH RI
OLYLQJIDUDZD\IURPKLVODQGDQGHQMR\SRZHURYHUWKH2WKHUV
+H\VW¶VRZQZRUOGRIWKHZKLWHVUHWXUQVWRKLPLQIRUPRIDJLUOZKRPKH
PHHWVDW6FKRPEHUJ¶VKRWHO+HVDYHV/HQDIURPEHLQJEHOHDJXHUHGKDUDVVHGDQG
H[SORLWHG ,PPHGLDWHO\ WKH UHDGHUV DVN WKHPVHOYHV GLG +H\VW QHYHU PHHW DQ\
VXIIHULQJ QRQZKLWH ZRPDQ" 2U ZK\ GRHV &RQUDG QRW VKRZ DQ\ QDWLYH ZRPDQ
²LQVWHDGRIDZKLWHRQH²VXIIHULQJVWUHVVHGDQGEHLQJKDVVOHG"7KLVZDVQHYHU
WKH SXUSRVH RI &RQUDG $ FRPSOHWH LGHQWLILFDWLRQ ZLWK WKH QHZ H[LOHG ZRUOG
FRXOGQRWEHDFKLHYHGE\DQ\ZKLWHPDQ+H\VWZLWKDIUDJPHQWRIKLVSDVWZRUOG
DFFRPSDQ\LQJ KLP LQ WKH QRQZKLWH ZRUOG UHSUHVHQWV WKH LPSRVVLELOLW\ RI
DEVROXWH GLVFRQQHFWLRQ ZLWK WKH ZKLWH ZRUOG 0RUHRYHU KH GRHV QRW FRPH LQ
GLUHFW FRQWDFW ZLWK PDQ\ QRQZKLWHV EXW KH KDV D FHUWDLQ VHQVH RI GRXEW DQG
VXVSLFLRQPLVWUXVWDQGGUHDGDERXWWKHQDWLYHSHRSOHKHNQRZV$IWHUWKHDUULYDO
RIWKHWZR(QJOLVKPHQ0U-RQHVDQG5LFDUGR+H\VWVXVSHFWVWKDWKLVQRQZKLWH
VHUYDQW:DQJLVUHVSRQVLEOHIRUKLVPLVVLQJUHYROYHU:KHQ+H\VWUHDOL]HVWKDWKLV
OLIHPLJKWEHH[SRVHGWRDFHUWDLQGDQJHUKHFRQMHFWXUHV:DQJWREHWKHVRXUFHRI
WKDW WKUHDW 2Q WKH RQH KDQG +H\VW FDQQRW EXW FDVW KLV VXVSLFLRQV RQ KLV VHUYDQW
DQG RQ WKH RWKHU :DQJ KDV DOZD\V EHHQ D OR\DO DQG GHGLFDWHG VHUYDQW DQG D
VWHDG\ HPSOR\HH RI +H\VW +H\VW¶V IDVFLQDWLRQ ZLWK :DQJ LV QRZ FKDQJHG LQWR
IHDU XQHDVLQHVV DQG ZRUU\ 1RZ KH LQWHUSUHWV :DQJ¶V P\VWHULRXV DSSHDUDQFHV
DQG GLVDSSHDUDQFHV DV VLJQV RI KRPLFLGDO LQWHQWLRQV 7KH PRPHQW +H\VW PLVVHV
WKH UHYROYHU D V\PEROLF GHYLFH WKDW JXDUDQWHHV WKH VXUYLYDO RI WKH ZKLWH PDQ LQ
WKHQRQZKLWHLVODQG0DUORZVWHSVLQWR+H\VW¶VPLQGDQGH[SRVHVWRWKHUHDGHUV
KLV VXVSLFLRQV DERXW :DQJ¶V PXUGHURXV SODQV 0DUORZ VD\V WKDW +H\VW IHHOV
³7KHUHZDVQRWKLQJWRSUHYHQWWKDWJKRVWO\&KLQDPDQIURPPDWHULDOL]LQJVXGGHQO\
DWWKHIRRWRIWKHVWDLUVRUDQ\ZKHUHDWDQ\PRPHQWDQGWRSSOLQJKLPRYHUZLWKD
GHDG VXUH VKRW´ 9 +H\VW FDQ QHYHU LPDJLQH WKDW DQ HDVWHUQHU FRXOG DOVR
WKLQNRIKLVRZQVHFXULW\GXHWRWKHLQWUXVLRQRIWKHSHRSOHRIWKHRWKHUUDFH+H\VW
PD\ QRW KDYH D FRORQL]HU¶V DWWLWXGH WRZDUGV WKH FRORQL]HG EXW WKH FRORQL]HU¶V
SULYLOHJHV OLNH SRVVHVVLQJ D UHYROYHU IRU KLV VHFXULW\ DUH SDUW RI KLV EHLQJ
:KHWKHU+H\VWZLVKHVRUQRWKHLVUHFHLYHGDQGLVDOZD\VVHHQDVDFRORQL]HUZKR
HQMR\VWKHFLYLOOLEHUWLHV+HLVJUDQWHGWKHVDPHSRVLWLRQLQWKHFRORQ\DVLVJLYHQ
WRDQ\ FRORQL]HU7KRXJK+H\VWHQMR\VWKHUHVSHFWRI:DQJZKLFKLVPRUHWKDQ
:DQJ FRXOG JLYH WR WKH EHVW RI KLV RZQ SHRSOH \HWWKH ZKLWH PDQ¶V IDLWK LQ WKH
QRQZKLWH IDOWHUV ,Q WUXWK +H\VW¶V IHDU WKDW WKH &KLQDPDQ PLJKW FRQVWLWXWH D
SRVVLEOHWKUHDWWRKLVOLIHLVDFRQFUHWHH[DPSOHRIWKH:HVW¶VPLVWUXVWRIWKH(DVW
,WKDVDOUHDG\EHHQPHQWLRQHGLQWKHSDUDJUDSKVDERYHWKDWWKHSDWWHUQRIWKH
LQWHQWLRQV RI WKH ZKLWH PHQ LV VDPH LQ DOO WKH QRYHOV RI &RQUDG %HLQJ
GLVKRQRXUHG LQ KLV RZQODQG /LQJDUG LQ7KH 5HVFXH H[LOHV KLPVHOI WR D GLVWDQW
$UFKLSHODJRDQGHQMR\VWLWOHVOLNH5DMDK/DXW5XOHURIWKH6HDVDQG.LQJ7RP
,Q WKLV GLVWDQW ODQG /LQJDUG OLYHV E\ HVWDEOLVKLQJ D UHODWLRQVKLS RI GHIHUHQFH
WRZDUGVKLPIURPKLV0DOD\DQFUHZDQGWKHSRSXODWLRQRIWKHLVODQG+HEHFRPHV
D PDVWHU DQG DVVXPHV DXWRQRPRXV DXWKRULW\ /LQJDUG WHOOV +DVVLP WKDW KH
FRQVLGHUVKLPVHOIWREHDSDUWRIWKHLULVODQG3DUDGR[LFDOO\KHDOVREHOLHYHVWKDW
HYHU\WKLQJ RQ WKH LVODQG EHORQJV WR KLP +H VD\V µ³EXW KHUH ZKLFK LV DOVR P\
FRXQWU\±EHLQJDQ(QJOLVKFUDIWDQGZRUWK\RILWWRR±,DPSRZHUIXOHQRXJK,Q
IDFW , DP 5DMDK KHUH 7KLV ELW RI P\ FRXQWU\ LV DOO P\ RZQ¶´ 75 /LQJDUG
PD\KDYHJRQHWRWKHQRQZKLWHODQGIRUWKHVDNHRIDGYHQWXUHEXWWKH VHQVHRI
EHLQJWKHRZQHUUXQV FRQFXUUHQW ZLWKDOOWKHZKLWHSHRSOH /LNHDQ\RWKHUZKLWH
PDQIRUH[DPSOH$OPD\HURU.XUW]/LQJDUGWRRFRQVLGHUVWKDWSDUWRIWKHZRUOG
WREHKLVRZQWHUULWRU\ 7KHZKLWHPDQLVEHQWXSRQKHOSLQJWKHQDWLYHV +DVVLP
DQG ,PPDGD %XW ³ZKDW DSSHDOHG WR KLP PRVW ZDV WKH VLOHQW WKH FRPSOHWH
XQTXHVWLRQLQJDQGDSSDUHQWO\XQFXULRXVWUXVWRIWKHVHSHRSOH´75+HVD\V
WKDWWKHLUGXPETXLHWXGHVWLUUHGKLPPRUHWKDQWKHPRVWDUGHQWSOHDGLQJ³1RWD
ZRUG QRW D ZKLVSHU QRW D TXHVWLRQLQJ ORRN HYHQ 7KH\ GLG QRW DVN ,W IODWWHUHG
KLP´75/LQJDUGGHFLGHVWRKHOS+DVVLPDQG,PPDGDRQO\EHFDXVHRIWKHLU
VXEPLVVLYHQHVVDQGVLOHQFHDQGWKHLUDFFHSWDQFHRI/LQJDUG¶VSRZHUDXWKRULW\DQG
VXSHULRULW\+HLVXQDZDUHWKDWKLVSRVLWLRQLQWKHLVODQGLVGRXEO\LOOHJLWLPDWH+H
LVDIRUHLJQHUZKRFUHDWHVVSDFHIRUKLPVHOILQWKHDOLHQODQGRQWKHRQHKDQGDQG
RQ WKH RWKHU KH EHFRPHV D UXOHU DQG WULHV WR WDNH WKH SRSXODFH DZD\ IURP WKHLU
QDWXUDOZD\VRIH[LVWHQFH
&RQUDG VKRZV WKDW /LQJDUG LV LQIOXHQFHG E\ KLV UDFH DQG FRPPXQLW\ -XVW
RQH JOLPSVHRIWKHZKLWHSHRSOHPDNHV /LQJDUG IRUJHWWKHWZR \HDUVWKDWKHKDV
VSHQW LQ WKH QRQZKLWH ODQGV )RU WKH ILUVW WLPH SHUKDSV EXW KH IRUJHWV KLV EODFN
IULHQGV7KHPDQZKRERDVWVWKDWWKHODQGEHORQJVWRKLPDQGKHEHORQJVWRWKH
ODQG RYHUORRNV WKH WZR\HDU ROG UHODWLRQVKLS DQG WKH SURPLVH KH KDG PDGH +H
LJQRUHVWKHQRQZKLWHLQKDELWDQWVZKRKDYHEOLQGIDLWKLQKLP$VLVWKHFDVHZLWK
RWKHU ZKLWH PHQ ² EHFDXVH RI ZKRP WKH QDWLYHV KDYH WR VXIIHU WKH ORVV RI QRW
RQO\ PDWHULDO WKLQJV SHDFH DQG HYHQ WKHLU OLYHV ² LQ WKH VDPH ZD\ EHFDXVH RI
/LQJDUG +DVVLP DQG ,PPDGD KDYH WR ORVH WKHLU OLYHV DW WKH HQG &RQUDG VKRZV
WKDW D ZKLWH PDQ PD\ SURIHVV WKDW KH EHORQJV WR WKH ODQG RI WKH 2WKHUV DQG DOVR
FRQVLGHU WKH QRQZKLWHV D SDUW RI KLV IDPLO\ EXW IRU RQH UHDVRQ RU WKH RWKHU KH
FDQQRWIXOILOKLVSURPLVHV7KHQDWLYHVKDYHWRVXIIHUIRUWKHLQWUXVLRQRIWKHZKLWH
PHQLQWKHLUODQGVDQGOLYHV
/LQJDUG¶V UDFLDO SUHMXGLFHV FRPH WR WKH IRUHIURQW LQ $Q 2XWFDVW RI WKH
,VODQGVDOVRZKHQZHKHDUKLPWDONWR:LOOHPV
³ \RX VHH :LOOHPV , EURXJKW SURVSHULW\ WR WKDW SODFH ,
FRPSRXQGHG WKHLU TXDUUHOV DQG VDZ WKHP JURZ XQGHU P\ H\HV
7KHUH¶V SHDFH DQG KDSSLQHVV WKHUH , DP PRUH PDVWHU WKHUH WKDQ WKLV
'XWFK([FHOOHQF\GRZQLQ%DWDYLDHYHUZLOOEH,PHDQWRNHHSWKH
$UDEV DZD\ RXW RI LW ZLWK WKHLU OLHV DQG LQWULJXHV , VKDOO NHHS WKH
YHUPLQRXVEUHHGRXWLILWFRVWVPHP\IRUWXQH´$,2
/LQJDUG EHOLHYHV WKDW KH KDV FUHDWHG WKH VHWWOHPHQW DQG LW¶V EHFDXVH RI KLP WKDW
SURVSHULW\ UHLJQV RYHU WKH SODFH )RU KLP WKH UXOH RI DQ\ SHUVRQ FRXOG UXLQ WKH
KDSSLQHVVRIKLVVHWWOHPHQW&RQUDGSHUKDSVZDQWVWRH[SRVHWKDW/LQJDUGWULHVWR
FRQFHDOKLVGHVLUHWRPRQRSROLVHRYHUWKHQRQZKLWHVHWWOHPHQWZLWKKLVWKHRU\RI
SURJUHVVWKHGHYHORSPHQWDQGSHDFHZKLFKRQO\DZKLWHPDQFRXOGEULQJ+HWHOOV
:LOOHPVWKDW$EGXOODWKH$UDEWUDGHUZRXOGVTXHH]HWKHQDWLYHVLIKHZHUHJLYHQ
WKH FKDQFH WR UXOH RYHU KLV VHWWOHPHQW /LQJDUG¶V LPSRUWDQFH LV EDVHG XSRQ WKH
SRZHU DQG GRPLQDQFH WKDW KH HQMR\V RYHU WKH KHOSOHVV 0DOD\V %XW KLV UDFLDO
ELDVHV DUH YHLOHG EHKLQG WKH VPRNHVFUHHQ RI KLV VRFDOOHG PDJQLILFHQFH DQG
JHQHURVLW\
$OPD\HU¶V )ROO\LV DOVR DQ H[DPSOH RI /LQJDUG¶V GRPLQDWLRQ +H GLVWDQFHV
DQGGLVORFDWHVWKHQRQZKLWHVIURPWKHLUFXOWXUHKLVWRU\DQGURRWV/LQJDUGDGRSWV
DQ RUSKDQ JLUO DQG ZDQWV WR JLYH KHU HYHU\WKLQJ WKDW DFFRUGLQJ WR D ZKLWH PDQ
KHOSV LQ SURYLGLQJ DQ HDV\ DQG FRPIRUWDEOH OLIH 7KH UHDGHUV ZRXOG GHILQLWHO\
DSSUHFLDWH /LQJDUG¶V DFW RI DGRSWLQJ D QDWLYH RUSKDQ DQG JLYLQJ KHU FRQYHQW
HGXFDWLRQ%XWWKHUHDGHUVQHHGDOVRWRUHPHPEHUWKDW/LQJDUGHPEUDFHVWKHJLUO
RQO\EHFDXVHRIWKHIHHOLQJRIJXLOW+HLVUHVSRQVLEOHIRUWKHGHDWKRIKHUIDPLO\
DQG SHRSOH 6HFRQGO\ WKH DFW RI VHQGLQJ D QDWLYH WR D FRQYHQW VFKRRO DQG WKH
GHVLUHWRJHWKHUPDUULHGWRDZKLWHPDQLVDQDFWRIIRUFLQJDQDWLYHWRJRDZD\
IURP KHU RZQ SHRSOH HWKQLFLW\ FXVWRPV KLVWRU\ DQG VXUURXQGLQJV 7KH VDPH
DWWLWXGHLVIRXQGLQWKHQH[WJHQHUDWLRQDOVR$OPD\HUORYHVKLVKDOIFDVWHGDXJKWHU
DQG GUHDPV D OHJDO DQG VHFXUH SODFH IRU KHU LQ WKH ZKLWH VRFLHW\ ,W VHHPV WKDW
$OPD\HU GRHV WKLV EHFDXVH KLV EORRG UXQV LQ WKH YHLQV RI WKLV JLUO $QG OLNH
/LQJDUG$OPD\HUWRRGUHDPVRIJHWWLQJKLVGDXJKWHUPDUULHGWRDZKLWHPDQVR
WKDWVKHLVDFFHSWHGLQKLVVRFLHW\
/LQJDUG¶V JUDFLRXVQHVV DQG PDJQDQLPLW\ DULVH IURP WKH IHHOLQJ RI UHPRUVH
RI PDNLQJ D JLUO DQ RUSKDQ ,Q KLV PLQG KH OLIWV D EODFN ZRPDQ IURP WKH
GHPHDQLQJVDYDJHDQGLQKXPDQVWDJHRIHYROXWLRQ%XW/LQJDUG¶VDFWRQO\OHDGV
WR WKH QDWLYH ZRPDQ¶V GLVORFDWLRQ GLVSODFHPHQW DQG GLVDUWLFXODWLRQ &RQUDG
VKRZVWKDWWKHDGRSWLRQRI0UV$OPD\HUPD\KDYHFKDQJHGKHUVWDWXVDQGFODVV
EXWLWFRXOGQHYHUFKDQJHWKHFRORXURIKHUVNLQ7KHJHQHUDODWWLWXGHRIDYHUVLRQ
RIWKHZKLWHVWRWKHEODFNFRPSOH[LRQHGODGLHVLVVHHQLQ$OPD\HU¶VDQG:LOOHPV¶
GLVOLNHIRUWKHLUZLYHV$QGDVIDUDVDEODFNRUDKDOIFDVWHGDXJKWHULVFRQFHUQHG
WKH SV\FKH RI WKH ZKLWHV LV VDPH 'DXJKWHUV DGRSWHG RU ELRORJLFDO XQOLNH QRQ
ZKLWH ZLYHV DUH DFFHSWDEOH DQG DUH GHVLUHG WR PRYH WR WKH ZKLWH IDPLO\ DIWHU
PDUULDJHLIOLYLQJLQWKHQRQZKLWHODQGV$WWKHOHYHORIIDPLO\ZLWKWKHZKLWHV
DQGWKHQRQZKLWHVDVLWVPHPEHUVWKHZKLWHPDQWULHVWRHVWDEOLVKWKHVXSHULRULW\
RIKLVEORRGFXOWXUHDQGFRORXURYHUKLVQDWLYHZLIH7KLVLVLQDVHQVHDQRWKHU
OHYHORIH[SORLWDWLRQRIWKHQDWLYHVE\WKHZKLWHV
&RQUDGLVVFHSWLFDORIWKHLPSHULDOYHQWXUHVLQKLVZRUNV+HPRFNVDWWKH
KHURLVPRIWKHZKLWH(XURSHDQVE\GHSLFWLQJWKHPDVIDLOXUHV,Q&RQUDGWKXVWKH
ZKLWHQHVVRIWKHPDWHULDOJRRGVDQGWKHLQYDGHUVV\PEROL]HWKHVSLULWXDOGHDWKRI
WKH ZKLWH SHRSOH $OPD\HU¶V GUHDPV RI JROG DQG WUHDVXUH KDYH FRPH WR QRWKLQJ
/LQJDUG¶V KRSHV KDYH IDLOHG WRR 7KH &KLHI $FFRXQWDQW DW WKH )LUVW &RPSDQ\
6WDWLRQWKH0DQDJHUDQGWKH%ULFN0DNHUDWWKH6HFRQG&RPSDQ\6WDWLRQ.XUW]
DWWKH7KLUG&RPSDQ\6WDWLRQLQ+HDUWRI'DUNQHVV0U7UDYHUVLQ7KH5HVFXH
$OPD\HULQ$OPD\HU¶V)ROO\DQG:LOOHPVLQ$Q2XWFDVWRIWKH,VODQGVUHSUHVHQW
WKH VSLULWXDO YRLG LQ WKHLU OLYHV 6KDZ WKH &KLHI 0DWH RI/LJKWLQLQJ LV MXVW OLNH
WKH0DQDJHULQ+HDUWRI'DUNQHVVFRQFHUQHGRQO\ZLWKKLPVHOIKLVSRVLWLRQDQG
KLV SRZHU RYHU WKH SHRSOH DW WKH SHULSKHU\ 6LPLODUO\ 0DUORZ LQ /RUG -LP
EHFRPHVDQLPSRUWDQWLQVWUXPHQWRIWKHFRORQLDOP\WKIRUKHKDLOV-LP¶VWULXPSK
LQ EULQJLQJ SHDFH DQG SURVSHULW\ WR 3DWXVDQ DV DQ HYLGHQFH RI WKH ZKLWH PDQ¶V
HQHUJ\HQWHUSULVHDQGVNLOO%XWLQIDFWDWWKHHQGKHEHFRPHV\HWDQRWKHUV\PERO
RIVSLULWXDOYRLG
7KHUHIRUHDSRVWFRORQLDOUHUHDGLQJRI&RQUDGSRLQWVRXWWKDWKHVKRZVKRZ
WKH GRFWULQHV RI ZKLWH PDQ¶V EXUGHQ VRFLDO HTXDOLW\ DQG WKHRULHV RI
HQOLJKWHQPHQW DQG SURJUHVV WUDQVIRUP LQWR WRWDOLWDULDQLVP RSSUHVVLRQ FUXHOW\
GHVSRWLVP DQG DEVROXWLVP &RQUDG¶V SURWDJRQLVWV OLNH $OPD\HU :LOOHPV .XUW]
/LQJDUG +H\VW DQG -LP HWF DUH WKH SURGXFWV RI WKH ODWH QLQHWHHQWK DQG HDUO\
WZHQWLHWKFHQWXU\LPSHULDO(XURSH7KHIDLOXUHRIWKHVXFFHVVP\WKVDGYRFDWHGE\
WKHZKLWHVVKRZVWKHOLPLWDWLRQVRIWKHZKLWHVXSUHPDF\+HQFHPHWDSKRULFDOO\
WKH XOWLPDWH GLVLQWHJUDWLRQ RI &RQUDG¶V ZKLWH SURWDJRQLVWV VWDQGV DV D SRZHUIXO
HYLGHQFHRIWKHIDLOXUHRIZKLWHPDQ¶VEXUGHQ7KHVHOIFHQWUHGUDYHQRXVZLFNHG
DJHQWV RI WKH VXSHULRU ZKLWH UDFH LQ WKH ZDNH RI SURJUHVVLRQ RI WKH
XQGHUSULYLOHJHG QHYHU EULQJ WKH QDWLYHV DZD\ IURP WKHLU SHUFHLYHG SULPLWLYLVP
7KH\ FDQQRW ZHDQ WKH VXSSRVHG XQHQOLJKWHQHG LQKDELWDQWV RXW RI WKH VRFDOOHG
GDUNQHVV7KHDJHQWVDQGWKHWUDGHUVRIWKHSURIHVVHGVXSHULRUUDFHFRQVHTXHQWO\
IDLO WR SHUIRUP WKHLU GLYLQH GXWLHV DQG LQ WKHLU IDLOXUH WKH UHDGHUV GHWHFW WKH
FROODSVHRIZKROHV\VWHPLWVWKHRULHVDQGP\WKV
,QDGGLWLRQWRWKHSRUWUD\DORIWKHQHJDWLYHWUDLWVRIWKHSURWDJRQLVWV&RQUDG
JLYHV VSDFH WR WKH H[SORLWDWLYH QDWXUH DQG FDOORXVQHVV RI WKH PLQRU ZKLWH
FKDUDFWHUVDVZHOO:LWKWKHUHSUHVHQWDWLRQRIWKHXQKHOSIXOEHKDYLRXURIWKHPLQRU
FKDUDFWHUV&RQUDGOHDYHVWKHUHDGHUVLQQRGRXEWRIKLVUHVSHFWDQGDGPLUDWLRQIRU
WKH FXOWXUH RI WKH 2WKHUV +LV PLQRU ZKLWH FKDUDFWHUV H[KLELW FRPSOHWH
XQUHOLDELOLW\LUUHJXODULW\DQGDSHUIHFWQRQDWWDFKPHQWZLWKDQ\WKLQJH[FHSWWKHLU
RZQ VHOI 7KH\ DUH WKH HPERGLPHQWV RI SXUH VHOILVKQHVV DQG DUH LQVWUXPHQWDO LQ
SURGXFLQJ DQDUFK\ DQG FKDRV LQ WKH QRQZKLWH ODQGV &RQUDG UHGXFHV WKHVH
FKDUDFWHUVWRWKHLUEDUHVWERQHVLQRUGHUWRVKRZWKHLUXQZRUWKLQHVVLQILGHOLW\DQG
LQKXPDQLW\ ,Q KLV VLPSOH GUDPDWL]DWLRQ RI WKHLU H[SORLWDWLYH PRWLYHV &RQUDG
VKRZVWKHVKHHUDQLPDOLQVWLQFWVDQGDQDUFKLVWLFSDVVLRQRIWKHZKLWHVWRZDUGVWKH
QRQZKLWHV
7KH PLQRU FKDUDFWHUV RI +HDUW RI 'DUNQHVV H[HPSOLI\ KRZ WKH FUDVV
FRPPHUFLDOLVP EUHHGV SHRSOH OLNH WKH 0DQDJHU WKH &KLHI $FFRXQWDQW DQG WKH
EULFNPDNHU7KH\DUHGHYRLGRIDQ\KXPDQFRQFHUQRUKXPDQHHPRWLRQVIRUWKH
QDWLYHV 7KH\ DUH LQGLIIHUHQW RU SHUKDSV XQFRQVFLRXV RI WKH GHJUDGDWLRQ DQG
VSLULWXDO LOOQHVV WKDW SURVSHUV LQ WKHLU KHDUWV DQG LQVLGH WKHLU ZKLWH FRPSDQLRQV
DURXQG WKHP 7KH &KLHI $FFRXQWDQW DW WKH )LUVW &RPSDQ\ 6WDWLRQ LQ +HDUW RI
'DUNQHVV DSSDOV 0DUORZ E\ KLV ZKLWH DQG VSRWOHVV DWWLUH 7KLV IDFDGH RI SXULW\
ZKLFK WKH &KLHI $FFRXQWDQW KDV EHHQ DEOH WR SUHVHUYH DPLGVW D VZHOWHULQJ DQG
PXGG\ MXQJOH DFWXDOO\ VLJQLILHV WKH VSLULWXDO GHDWK RI WKHVH SHRSOH 3HRSOH OLNH
KLP KDYH EHFRPH LQGLIIHUHQW WR WKH VXIIHULQJ RI QRW RQO\ WKH EODFNV EXW WKDW RI
WKHLU RZQ FRPSDQLRQV WRR 7KH $FFRXQWDQW¶V ³ KLJK VWDUFKHG FROODU ZKLWH
FXIIVDOLJKWDOSDFDMDFNHWVQRZ\WURXVHUVDFOHDQQHFNWLHDQGYDUQLVKHGERRWV
1RKDW+DLUSDUWHGEUXVKHGRLOHGXQGHUDJUHHQOLQHGSDUDVROKHOGLQDELJZKLWH
KDQG´UHSUHVHQWWKHHPEHOOLVKHGIDFDGHRIFLYLOL]DWLRQ+2'7KHZKLWHDQG
VWDUFKHGFROODUVWKHFOHDQOLQHVVRIWKH&KLHI$FFRXQWDQW¶VFORWKHVDQGERRWVKDYH
EHHQDFKLHYHGE\WHDFKLQJDQDWLYHZRPDQKRZWRZDVKDQGVWDUFKDZKLWHPDQ¶V
FORWKHV ,QVWHDG RI HQOLJKWHQLQJ WKH QDWLYHV WKH ZKLWH SHRSOH HQVODYH WKH
GLVHQIUDQFKLVHGWRSHUIRUPPHQLDOFKRUHVIRUWKHP
$W WKH 6HFRQG &RPSDQ\ 6WDWLRQ 0DUORZ PHHWV WKH 0DQDJHU ZKR FDQ EH
FDOOHG DQ DJHQW RI WKH JUHDW 7UDGLQJ (XURSHDQ &RPSDQ\ +H LV &RQUDG¶V
SHUVRQLILFDWLRQRIWKH³IODEE\SUHWHQGLQJDQGZHDNH\HGGHYLORIDUDSDFLRXVDQG
SLWLOHVVIROO\´+2'7KH0DQDJHUKDVQRHGXFDWLRQ+HLVD³FRPPRQWUDGHU´
ZKR LQVSLUHV ³QHLWKHU ORYH QRU IHDU QRU HYHQ UHVSHFW´ DQG FUHDWHV D IHHOLQJ RI
XQHDVLQHVV LQ DOO ZKR PHHW KLP +2' $IWHU PHHWLQJ WKH 0DQDJHU DOO WKDW
0DUORZ JDWKHUV LV WKDW KH KDG QHYHU IDOOHQ LOO RU VLFN DQG LV DEOH WR NHHS XS WKH
VXSSOLHV RI LYRU\ IORZLQJ WR (XURSH 7KH 0DQDJHU ZKRP &RQUDG UHIHUV WR DV D
³µQR[LRXV IRRO¶´ DQG D ³FKDWWHULQJ LGLRW´ H[HPSOLILHV LQVLQFHULW\ ZRUWKOHVVQHVV
ZLFNHGQHVVDQGWULYLDOLW\RIWKHFLYLOL]LQJPLVVLRQ+2'0DUORZQRWLFHV
WKDW WKH 0DQDJHU KDV EHHQ GHOD\LQJ WKH UHOLHI SDUW\ IURP UHWXUQLQJ WR .XUW] VR
WKDW.XUW]VXFFXPEVWRGLVHDVHLOOQHVVDQGILQDOO\GHDWK7KH0DQDJHUGLVOLNHVWKH
LGHDRILPSURYHPHQWDQGLQVWUXFWLRQWKDWFRXOGEULQJNQRZOHGJHWRWKHVRFDOOHG
VDYDJH ZLOG DQG XQHGXFDWHG SHRSOH 0RUHRYHU KH ZDQWV WR HOHYDWH KLPVHOI WR
.XUW]¶VSRVLWLRQDIWHUKLVGHDWK7KHVHZKLWHPHQDUHDQHSLWRPHRIPDOHYROHQFH
DQGFRYHWRXVQHVV$WWKHVDPH&RPSDQ\6WDWLRQWKHEULFNPDNHUDOVRVWDQGVIRU
WKH&RPSDQ\¶VLQHSWLWXGH+HUHIOHFWVWKH&RPSDQ\¶VDYDULFHEHFDXVHKHZDQWVWR
DGYDQFH LQ UDQN ZLWKRXW FRPSOHWLQJ DQ\ DFWXDO ZRUN &RQUDG UHIHUV WR WKH WRWDO
LQKXPDQLW\RIWKHVHZKLWHWUDGHUVDQGDJHQWV$FFRUGLQJWRKLPWKHZKLWHSHRSOH
JR WKH QRQZKLWH ODQGV ZLWK WKH VROH SXUSRVH RI FDSLWDO DFFXPXODWLRQ &RQUDG¶V
SRUWUD\DO RI WKH PLQRU FKDUDFWHUV VKRZV KLV H[FHVVLYH LQGLJQDWLRQ DJDLQVW WKH
PDOHYROHQFHWKDWIORXULVKHVLQWKHDLPVRIWKHZKLWHWUDGHUVDQGDJHQWV
,Q 7KH 5HVFXH &RQUDG¶V GHVFULSWLRQ RI 0U 7UDYHUV DQG 6KDZ VKDNHV WKH
EHGURFNRIWKHYDOXHVRI%ULWLVK&RPPHUFLDOWUDGLQJQHWZRUN0U7UDYHUVSOD\VD
PLQRUUROHLQWKHQRYHODQGV\PEROL]HVWKHVHQWLPHQWVRIWKH(XURSHDQVWRZDUGV
WKHQRQZKLWHV /LQJDUG¶VKHOSIXODWWLWXGHWRZDUGVWKHEODFNVPDNHV0U 7UDYHUV
DQJU\ 0U 7UDYHUV IHHOV WKDW VXFK JHVWXUHV RI /LQJDUG ZHUH D GLVJUDFH WR KLV
FLYLOL]DWLRQ+HDOVRFULWLFL]HVWKHORZHUUDFHZKLFKFRXOGDFFRUGLQJWRKLPSURYH
WR EH GDQJHURXV IRU WKH SHRSOH RI KLV SRVLWLRQ 0U 7UDYHUV EHOLHYHV µ³LI WKH
LQIHULRUUDFHPXVWSHULVKLWLVDJDLQDVWHSWRZDUGVSHUIHFWLQJRIVRFLHW\ZKLFKLV
WKHDLPRISURJUHVV´¶75+LVRSLQLRQVVKRZWKHFRQWDPLQDWLRQRIWKHLGHDOV
RI WKH LPSHULDO DXWKRULW\ 0U 7UDYHUV¶ YLHZV DERXW WKH SURIHVVHG LQIHULRU UDFH
UHPLQGWKHUHDGHUVRI.XUW]LQ+HDUWRI'DUNQHVVZKRVXJJHVWHGWKDWWKHQDWLYHV
VKRXOGEHH[WHUPLQDWHG:KHWKHUUHODWHGGLUHFWO\RULQGLUHFWO\WRLPSHULDOLVPWKH
ZKLWHPDQ¶VSXUSRVHLVWRVHHWKHH[WLQFWLRQRIWKHUDFHWKDWWKH\DUHVXSSRVHGWR
WHDFK DQG HQOLJKWHQ ,Q WKH VDPH QRYHO WKH UHDGHUV FRPH DFURVV DQRWKHU ZKLWH
PDQZKRLVOLNHWKH0DQDJHUDWWKH)LUVW&RPSDQ\6WDWLRQLQ+HDUWRI'DUNQHVV
6KDZ D PDOLQJHUHU LV WKH &KLHIPDWH RI WKH EULJ /LJKWQLQJ &RQUDG GHVFULEHV
6KDZDVDPDQZKRLVYDOXDEOHRQO\WRKLPVHOI7KHVHRVWHQVLEOHSURWHFWRUVRIWKH
PLVHUDEOHRSSUHVVHGDQGGDUNVNLQQHGUDFHWKUXVWWKHPLQWRLPSULVRQPHQWZKLFK
UHQGHUVWKHPLQFDSDEOHRIH[HUFLVLQJWKHLURZQZLOO6RWKHDLPRIDOOZKLWHPHQ
ZKHWKHU WKH\ SOD\ PDMRU RU PLQRU UROH LQ WKH QRQZKLWH ODQGV LV WR H[SORLW WKH
QDWLYHVWKHLUODQGVDQGPDNHSURILWDWWKHLUFRVW,Q&RQUDGWKHUHDGHUVZRXOGQRW
ILQGDQ\WUDFHRIV\PSDWK\IRUWKHZKLWHFKDUDFWHUVPDMRURUPLQRU
,Q /RUG -LP %URZQ LV D VODYH RI WKH SDVVLRQ RI UHYHQJH +H LV D SHUIHFW
ILJXUHRILUUDWLRQDOLW\%URZQ³DODWWHUGD\EXFFDQHHU´EHFRPHVDQLQVWUXPHQWLQ
EULQJLQJ DERXW WKH GRZQIDOO RI WKH LGHDO ZRUOG FUHDWHG E\ -LP /- +LV
WUHDFKHU\OHDGVWRWKHGHDWKRIWKHQDWLYHVRI3DWXVDQDQG'DLQDQGDOVR RI-LP
%URZQGHILHVWKHHVWDEOLVKHGRUGHUDQGLVGHVFULEHGDVDGHYLO
7KHUHZDVLQWKHEURNHQYLROHQWVSHHFKRIWKDWPDQXQYHLOLQJEHIRUH
PH KLV WKRXJKWV ZLWK WKH YHU\ KDQG RI 'HDWK XSRQ KLV WKURDW DQ
XQGLVJXLVHG UXWKOHVVQHVV RI SXUSRVH D VWUDQJH YHQJHIXO DWWLWXGH
WRZDUGV KLV RZQ SDVW DQG D EOLQG EHOLHI LQ WKH ULJKWHRXVQHVV RI ZLOO
DJDLQVWDOOPDQNLQGVRPHWKLQJRIWKDWIHHOLQJZKLFKFRXOGLQFOXGHWKH
OHDGHURIDKRUGHRIFXWWKURDWVWRFDOOKLPVHOISURXGO\WKH6FRXUJHRI
*RG/-
,Q%URZQ¶VFKDUDFWHUWKHDXWKRUEULQJVEHIRUHWKHUHDGHUVWKHSUHWHQFHGXSOLFLW\
DQG LQWULQVLF EDUEDULVP RI WKH FLYLOL]HG ZRUOG ,QWKH FXOWXUHG ODQGV WKH FRORQLDO
PLVVLRQ PD\ WDNH LWV EHQHYROHQW QDWXUH EXW LW JRHVQDNHG LQ WKH QRQZKLWH ODQGV
DQGWKHUHDGHUVFRPHDFURVVWKHWUHDFKHU\RIWKHZKLWHSHRSOH%URZQLVQRWKLQJ
EXW D SLOH RI OLHV ² D SHUIHFW MXVWLILFDWLRQ IRU SOXQGHU $FFRUGLQJO\ &RQUDG
LOOXVWUDWHV WKH UHDOLW\ RI WKH ORVV RI KXPDQLVP LQ WKH JUHHG\ ZKLWH EHLQJV OLNH
%URZQ
&RQUDGUHYHDOVWKHZLFNHGQHVVDQGHYLOLQ'RQNLQDPHPEHURIWKHZKLWH
FUHZ LQ 7KH 1LJJHU RI WKH µ1DUFLVVXV¶ 'RQNLQ FRPHV IURP WKH VOXPV RI
/RQGRQ¶V(DVWHQG ,QWKHQRYHO&RQUDGDVVRFLDWHV:DLWZLWK6DWDQDQG'RQNLQ
LV VHHQ DV %HHO]HEXE RU 0HSKLVWRSKHOHV ZKR ³NQHZ KRZ WR FRQTXHU WKH QDwYH
LQVWLQFWVRIWKDWFURZG,QDPRPHQWWKH\>WKHFUHZ@JDYHKLPWKHLUFRPSDVVLRQ
MRFXODUO\ FRQWHPSWXRXVO\ RU VXUOLO\ DQG DW ILUVW LW WRRN WKH VKDSH RI D EODQNHW
WKURZQDWKLPDVKHVWRRGWKHUHZLWKZKLWHVNLQRIKLVOLPEVVKRZLQJKLVKXPDQ
NLQVKLSWKURXJKWKHEODFNIDQWDV\RIKLVUDJV´711'RQNLQLVDUXGLPHQWDU\
V\PERO RI D LPPRUDO GHSUDYHG PDOLFLRXV QDVW\ DQG DQ LOOVSRNHQ SDUDVLWH +H
K\SRFULWLFDOO\SURSDJDWHVWKHVRFLDOLVWLGHDVRIHTXDOLW\ULJKWVDQGMXVWLFHZKLFK
DUH DFWXDOO\ GLUHFWHG WRZDUGV KLV RZQ PHDQV 'RQNLQ LV D VRXUFH RI GLVUXSWLRQ
IURPZLWKLQWKHVKLS¶VUDFLDOO\KRPRJHQHRXVJURXS+HVSUHDGVLQVWDELOLW\LQWKH
KHDUWVRIWKHFUHZE\DZDNHQLQJDVHQVHRIFRPSODLQW³DQGLQVSLUHGE\'RQNLQ¶V
KRSHIXO GRFWULQHV WKH\ GUHDPHG HQWKXVLDVWLFDOO\ RI WKH WLPH ZKHQ HYHU\ ORQHO\
VKLS ZRXOG WUDYHO RYHU D VHUHQH VHD PDQQHG E\ D ZHDOWK\ DQG ZHOOIHG FUHZ RI
VDWLVILHG VNLSSHUV´ 711 7KRXJK KH LV D FRUSRUDO IRUP RI WKH GHYLO \HW WKH
FUHZLGHQWLILHVZLWKWKHLGHRORJ\KHDUWLFXODWHV'RQNLQLVDQLQWHUQDODJHQWRIWKH
SROLWLFDOFRPPRWLRQRQWKHVKLS7KHQRYHOUHYROYHVDURXQG-DPHV:DLW²DQRWKHU
RI&RQUDG¶VQHJDWLYHEODFNFKDUDFWHUV²ZKRKDVEHHQGHDOWZLWKLQGHWDLOLQWKH
7KLUG&KDSWHU
,Q WKH JDOOHU\ RI &RQUDG¶V ZLFNHG FKDUDFWHUV DQRWKHU QDPH ZRUWK WKH
DWWHQWLRQ RI WKH UHDGHUV LV 0U-RQHV ,Q9LFWRU\ 0U -RQHV SUHWHQGV WR EH D WUXH
JHQWOHPDQ EXW FKHDWV SHRSOH DW WKH JDPH RI FDUGV 7KH FROGEORRGHG FUXHO DQG
FRUUXSWPDQWKULYHVRQWKHZHDNQHVVHVDQGYLFHVRIWKHRWKHUV:KHQ+H\VWDVNV
KLPDERXWKLVLGHQWLW\0U-RQHVUHSOLHV³µ,DPWKHZRUOGLWVHOIFRPHWRSD\\RX
DYLVLW ,QDQRWKHUVHQVH , DPDQRXWFDVW±DOPRVWDQRXWODZ ,I \RXSUHIHUDOHVV
PDWHULDOLVWLFYLHZ,DPDVRUWRIIDWH±WKHUHWULEXWLRQWKDWZDLWVLWVWLPH¶´9
$FFRUGLQJ WR &XUOH 0U -RQHV ³ZDV RQH RI WKRVH ERUQ FULPLQDOV ZLWK IUR]HQ
H[SUHVVLRQDQGDQDEGRPLQDOUXWKOHVVQHVVZKRDUHRXWFDVWVRIDVRFLHW\WKH\ERWK
KDWH DQG GHVSLVH´ &XUOH 0U -RQHV¶ DGYHQW LQ 6DPEXUDQ UHVXOWV LQ WKH
GHVWUXFWLRQRIWKHORYHO\DQGSHDFHIXOZRUOGRI+H\VWDQG/HQD%XWWKHUHLVRQH
VLPLODULW\ EHWZHHQ +H\VW DQG 0U -RQHV ZKLFK SRVWFRORQLDO UHDGHUV ZRXOG QRW
RYHUORRN%RWK+H\VWDQG0U-RQHVDUHWKHPHPEHUVRIWKHGRPLQDWLQJZKLWHUDFH
DQGWKHLUFRPPRQSXUSRVHLVH[SORLWDWLRQHYHQWKRXJKWKHUHLVDGLIIHUHQFHLQWKHLU
RSHUDWLRQV GHVLUHV DQG DLPV -RQHV WHOOV +H\VW ³µZH SXUVXH WKH VDPH HQGV RQO\SHUKDSV,SXUVXHWKHPZLWKPRUHRSHQQHVVWKDQ\RX±ZLWKPRUHVLPSOLFLW\¶´
9-RQHVDUJXHVVREHFDXVHKHLVDSDUWRIWKHVDPHUDFLDOVSKHUHWRZKLFK
+H\VW EHORQJV 3HUKDSV &RQUDG¶V SXUSRVH LQ FUHDWLQJ FKDUDFWHUV OLNH -RQHV LV WR
UHYHDOWKHSURGXFWLRQRIFRUUXSWLRQXQGHUWKHPDVNRIKXPDQERG\LQWKHLPSHULDO
VHWXS &RQUDG H[SODLQV WKDW -RQHV WDLQWV WKH DWPRVSKHUH RI QRW RQO\ KLV RZQ
VRFLHW\EXWWKDWRIWKHRWKHUVRFLHWLHVDVZHOO+HPLUURUV-RQHV¶UHPRUVHOHVVVRXO
DQG FRPPHQWV XSRQ KLVDJJUHVVLYH FDOORXVQHVV ODFNRI GHFHQF\ DQG FRQVFLHQFH
DQGDWURFLRXVGHHGV&RQUDGVKRZVKLVVFRUQDQGSDVVLRQDWHUHVHQWPHQWIRU-RQHV
7KH QRYHO KDV IXUWKHU DQWLLPSHULDOLVW VWULQJV LQ &RQUDG¶V SUHVHQWDWLRQ RI
6FKRPEHUJDVDFKDUDFWHUZKRKDVHYLOLQWHQWLRQVWRZDUGVKXPDQLW\LQJHQHUDO+H
LVDOZD\VVHHQDQGKHDUGJRVVLSLQJDQG³DVNLQJHYHU\ERG\DERXWHYHU\WKLQJDQG
DUUDQJLQJ WKH LQIRUPDWLRQ LQWR WKH PRVW VFDQGDORXV VKDSH KLV LPDJLQDWLRQ FRXOG
LQYHQW´9&RQUDGVD\V6FKRPEHUJ³ZDVDQR[LRXVDVVDQGKHVDWLVILHGKLV
OXVWIRUVLOO\JRVVLSDWWKHFRVWRIKLVFXVWRPHUV´9:UHWFKHVOLNH6FKRPEHUJ
DUH H[KLELWHG ZLWK WKH DXWKRU¶V H[WUHPH ORDWKLQJ 6FKRPEHUJ LV DOZD\V UHDG\ WR
JRVVLSDQGHPEURLGHUVWRULHVDERXWRWKHUVDQGPDNHKLPVHOIQRWLFHDEOHE\ GRLQJ
KDUP WR RWKHUV +LV KDWUHG WRZDUGV +H\VW EULQJV DERXW +H\VW¶V GRZQIDOO
6FKRPEHUJ SRXUV RXW KLV HQYHQRPHG KRVWLOLW\ RQ RWKHUV ZUDSSHG XS LQ OLHV +H
GRHV QRW KDYH D JRRG UHODWLRQVKLS ZLWK KLV ZLIH DQG KDV HYLO LQWHQWLRQV WRZDUGV
/HQD+HJHWVIXULRXVZKHQKLVHQHP\+H\VWVDYHV/HQDIURPKLVFODZV+H\VW¶V
UHVFXHRI /HQDJLYHV6FKRPEHUJDVWURQJHUPRWLYDWLRQWRPDNH+H\VWWKHREMHFW
RIKLVKHDUVD\7RDYHQJHKLPVHOI6FKRPEHUJSODQVWRNLOO+H\VWDQG /HQD)RU
WKLV SXUSRVH KH OLHV WR 0U -RQHV WKDW +HV\W KDV D ODUJH WUHDVXUH KLGGHQ RQ WKH
LVODQG DQG OLYHV DORQH ZLWK D &KLQHVH VHUYDQW 0U -RQHV ZLWK KLV FRPSDQLRQ
5LFDUGRDQGVHUYDQW3HGURUHDFKHV6DPEXUDQ$IWHUDIHZGD\V6FKRPEHUJ¶VSODQ
EHFRPHV VXFFHVVIXO DQG DOO KLV HQHPLHV +H\VW /HQD 0U -RQHV 5LFDUGR DQG
3HGUR GLH LQ 6DPEXUDQ &RQUDG¶V DELOLW\ WR PLQXWHO\ GHVFULEH WKH VXEWOHWLHV DQG
QHJDWLYHWUDLWVRIWKHZKLWHFKDUDFWHUVVKRZKRZSHQHWUDWLQJDSV\FKRORJLVWKHLV
+LVQHJDWLYHUHSUHVHQWDWLRQRI6FKRPEHUJV\PEROL]HVWKHILHUFHDQGXQUHDVRQDEOH
IDFDGHRIWKHVSLULWXDOGDUNQHVVWKDWSUHYDLOVLQWKHZKLWHVRFLHW\7KHVHZKLWHPHQ
DUHDQLQFDUQDWLRQRIVDYDJHU\SULPLWLYHQHVVDQGEDUEDULW\WKDWELQGVWKHPWRWKH
QDWLYHVZLWKDERQGRIUHPRWHNLQVKLS
.XUW]-LP:LOOHPV$OPD\HU/LQJDUGDQG+H\VWWKHSURWDJRQLVWVRI+HDUW
RI 'DUNQHVV /RUG -LP $Q 2XWFDVW RI WKH ,VODQGV $OPD\HU¶V )ROO\ DQG 9LFWRU\
UHVSHFWLYHO\DORQJZLWKWKHPLQRUFKDUDFWHUVZKRIHDWXUHLQWKHQRYHOVPDWHULDOL]H
DV DQWLKHURLF ILJXUHV EHFDXVH WKH\ IDLO WR FDUU\ RXW WKHLU PLVVLRQV DV
UHSUHVHQWDWLYHV DQG OR\DO RIILFLDOV RI FRORQLDOLVP %HQLWD 3DUU\ VD\V WKDW LQ WKH
ZRUNV RI &RQUDG ³WKH LPSHULDOLVW SURMHFW LV VWULSSHG RI LWV P\VWLTXH DV WKH
GLYLQHO\RUGDLQHGDQGKLVWRULFDOO\GHWHUPLQHGDJHQF\RIEULQJLQJWKHHDUWKXQGHU
UDWLRQDOUXOH´3DUU\7KHDGYHQWRIWKHZKLWHLQWUXGHUVRQO\EULQJVPLVIRUWXQH
PLVHU\ DQG VXIIHULQJ IRU WKH QRQZKLWHV :KHQ &RQUDG GHQLHV SRVLWLYH YDOXHV WR
WKH ZKLWH FKDUDFWHUV KH H[SRVHV WKH OLH RI WKH (XURSHDQ LGHDOLVP &RQUDG¶V
FKDUDFWHUL]DWLRQ RI WKH PLQRU FKDUDFWHUV WKURZV OLJKW RQ WKH LQVDQH EL]DUUH DQG
OXGLFURXVDVSHFWVRIWKHFRORQLDOLQVWLWXWLRQV
,Q WKH SRVWFRORQLDO ILHOG DQRWKHU LPSRUWDQW IDFWRU ZRUWK\ RI GHVFULSWLRQ LV
WKH XVH RI UKHWRULF E\ WKH LPSHULDO HQWHUSULVH 7KLV UKHWRULF GHSHQGV RQ FHUWDLQ
VWHUHRW\SHV DERXW WKH SHRSOH WR EH FRORQL]HG 7KH VWHUHRW\SHV FRQVWLWXWH DQ
HVVHQWLDO SDUW RI LPSHULDO LGHRORJ\ DQG SURYLGH WKH EDVLV IRU LPSHULDO H[SDQVLRQ
7KH FRORQL]HUV FUDIW FHUWDLQ IL[HG DQG REVHVVLYH LPDJHV RI WKH QDWLYHV WR PDNH
WKHLUFRORQLDOLQWHUYHQWLRQMXVWLILDEOHDQGFRQYHQLHQW7KHXVHRIVXFKUKHWRULFDQG
VWHUHRW\SHV VDYH WKH FRORQL]HUV DJDLQVW DQ\ DFFXVDWLRQ RI YLROHQW DFWLRQ 7KH
FUHDWLRQRIVWHUHRW\SHVLVDFFRPSDQLHGZLWKDUDYHQRXVDQGYRUDFLRXV\HDUQLQJWR
FRQWURO WKH QDWLYHV DQG OHJLWLPL]DWLRQ RI WKH ULJKW RI WKH ZKLWHV RU WKH :HVW WR
PRQRSROL]H7KHVWHUHRW\SLFDOIL[DWLRQRIWKHXQLGHQWLILHGDQGXQIDPLOLDU2WKHULV
DQLQWHJUDOSDUWRIDODUJHUVFKHPHWKDWDLPVDWUHDVVHUWLQJ(XURSHDQGRPLQDWLRQ
DQGNHHSLQJWKH2WKHUVDWDGLVWDQFH7KH:HVWDFTXLUHVFHUWDLQNQRZOHGJHRIWKH
(DVW EHFDXVH WKH :HVW ZDQWV WR PDNH WKH 2WKHUV PRUH FRQWUROODEOH PRUH
YXOQHUDEOH DQG PRUH GHIHQFHOHVV 6DLG VD\V ³:KDW JDYH WKH 2ULHQWDO ZRUOG LWV
LQWHOOLJLELOLW\ DQG LGHQWLW\ ZDV QRW WKH UHVXOW RI KLV RZQ HIIRUWV EXW UDWKHU WKH
ZKROH FRPSOH[ VHULHV RI NQRZOHGJHDEOH PDQLSXODWLRQV E\ ZKLFK WKH 2ULHQW ZDV
LGHQWLILHGE\WKH:HVW´6DLG
7KH :HVW WULHV WR FUHDWH LWV SUHHPLQHQFH E\ GHSLFWLQJ WKH (DVW DV
LQWLPLGDWLQJ VFDU\ WKUHDWHQLQJ DQG GDUN 6DLG VD\V WKDW 2ULHQWDOLVP LV WKH
2FFLGHQW¶V LGHRORJLFDO FUHDWLRQ RI WKH 2ULHQW ZKHUH WKH 2ULHQW VWDQGV IRU
HYHU\WKLQJWKDWLVQRWZHVWHUQ,IWKH:HVWUHSUHVHQWVJRRGQHVVDQGNLQGQHVVWKH
2ULHQW VLJQLILHV HYLO DQG ZLFNHGQHVV ,I WKH 2FFLGHQW UHSUHVHQWV FLYLOL]DWLRQ
GHYHORSPHQW DGYDQFHPHQW DQG SURJUHVV WKH 2ULHQW VWDQGV IRU VDYDJHU\ DQG
SULPLWLYLVP,IWKH:HVWH[HPSOLILHVUDWLRQDOLVPWKH2ULHQWV\PEROL]HVP\VWLFLVP
DQG VSLULWXDOLW\ :LWK WKH KHOS RI WKHVH ELQDU\ RSSRVLWLRQV LQ WKH ZHVWHUQ ZRUOG
WKH2ULHQWLVHSLWRPL]HGDQGUHFRJQL]HGDVGHILFLHQWDQGHYLO6RPHWLPHVWKH(DVW
LV SHUFHLYHG DV D KD]DUGRXV ULVN\ XQVDIH DQG LQVHFXUH SODFH ZKLFK VKRXOG EH
DYRLGHG $QG VRPHWLPHV LW DFTXLUHV WKH IHDWXUHV RI EHLQJ DQ H[RWLF FDSWLYDWLQJ
HQWKUDOOLQJ DQG HQFKDQWLQJ WHUUDLQ WKDW LV ZDLWLQJ WR EH GLVFRYHUHG ,Q WKLV YHU\
FRQWH[W 6DLG DUJXHV WKDW ³WKH 2ULHQW DW ODUJH YDFLOODWHV EHWZHHQ WKH :HVW¶V
FRQWHPSWIRUZKDWLVIDPLOLDUDQGLWVVKLYHUVRIGHOLJKWLQ±RUIHDURI±QRYHOW\´
6DLG2ULHQWDSSHDUVWREHDQREMHFWRIERWKPDJQHWLVPDQGORDWKLQJ
7KHQRQZKLWHODQGVDQGWKHLQKDELWDQWVDUHVWHUHRW\SHGDVEHLQJERWKHYLO
DQG GDQJHURXV 7KH PRVW LPSRUWDQW WURSH GHYHORSHG E\ WKH ZKLWHV IRU WKH
UHSUHVHQWDWLRQRIWKHQDWLYHVLVWKDWRIWKH FKLOG7KH FRQFHSWVRI FKLOGKRRGDQG
SULPLWLYHQHVVKDYHGHYHORSHGDVDOWHUQDWHVIRURQHDQRWKHU/RFNHZKRJDYHWKH
LGHD RI WDEXOD UDVD VWDWHV WKDW DW WKH ELUWK WKH PLQG RI WKH FKLOG LV EODQN 7KH
SDUHQWVDQGWKHVFKRROWHDFKHUVDUHUHVSRQVLEOHIRULWVGHYHORSPHQW7KHFRORQL]HU
E\VLJQLI\LQJWKHFRORQL]HGDVDSULPLWLYHDQGDZLOGFKLOGDVVXPHVWKHUROHRID
SDUHQW RU D VFKRROPDVWHU 7KH LPSHULDO DJHQWV IORXULVK WKHLU UXOH DQG VXSHULRU
DXWKRULW\ E\ SURSRXQGLQJ WKDW WKH QDWLYHV FDQQRW DFKLHYH WKH UDQN RI FLYLOL]HG
LQGLYLGXDOV XQOHVV WKH\ DUH GLUHFWHG DQG WUDLQHG E\ VRPHRQH ZKR LV DOUHDG\
FLYLOL]HG5H\&KRZLQKHUHVVD\³:KHUH+DYH$OOWKH1DWLYHV*RQH"´VD\VWKDW
WKH QDWLYHV DUH JLYHQ D GHILOHG DQG WDLQWHG LPDJH +RPL %KDEKD LQ ³7KH 2WKHU
4XHVWLRQ´DWWHPSWV DGHILQLWLRQRIVWHUHRW\SHV+HVD\VVWHUHRW\SH³LVDIRUPRI
NQRZOHGJH DQG LGHQWLILFDWLRQ WKDW YDFLOODWHV EHWZHHQ ZKDW LV DOZD\V µLQ SODFH¶
DOUHDG\ NQRZQ DQG VRPHWKLQJ WKDW PXVW EH DQ[LRXVO\ UHSHDWHG´ %KDEKD 7KH
2WKHU4XHVWLRQ
7KHZULWHUVLQVXSSRUWRILPSHULDOLVPSRUWUD\WKHQDWLYHVZLWKQHJDWLYHWUDLWV
DQG YLQGLFDWH JRYHUQDQFH E\ WKH ZKLWHV 7KH EODFNV DUH VKRZQ DV FKLOGOLNH
XQWDPHG VDYDJH VODYHV RI SDVVLRQ DQG LQFDSDEOH RI WDNLQJ FDUH RI WKHPVHOYHV
7KH FRORQL]HU LV FRQVWUXFWHG DV WKH HPERGLPHQW RI KLJK FDOLEUH NLQGQHVV
EHQHYROHQFH DQG GHFHQF\ ZKHUHDV WKH FRORQL]HG LVSRUWUD\HG DV WKH HSLWRPH RI
GLVKRQHVW\ GHFHLWIXOQHVV XQWUXWKIXOQHVV PDOHYROHQFH DQG HYLO ,Q $IULFD IRU
LQVWDQFH WKH EODFN QDWLYH VWDQGV IRU HYHU\WKLQJ QHJDWLYH LQ WKH KXPDQ EHLQJ DW
WKHVDPHWLPHWKHFRORQLDODJHQWUHSUHVHQWVDOOWKDWLVSRVLWLYH-DQ0RKDPHGVD\V
³7KHFRORQLDOPHQWDOLW\LVGRPLQDWHGE\D0DQLFKHDQDOOHJRU\RIZKLWHDQGEODFN
JRRGDQGHYLOVDOYDWLRQDQGGDPQDWLRQFLYLOL]DWLRQDQGVDYDJHU\VXSHULRULW\DQG
LQIHULRULW\ LQWHOOLJHQFH DQG HPRWLRQ VHOI DQG RWKHU VXEMHFW DQG REMHFW´
-DQ0RKDPHG 6LPLODUO\ )UDQW] )DQRQ LQ 7KH :UHWFKHG RI WKH (DUWK VD\V
³7KH FRORQLDO ZRUOG LV D 0DQLFKHDQ ZRUOG ,W LV QRW HQRXJK IRU WKH VHWWOHU WR
GHOLPLWSK\VLFDOO\WKHVHWWOHUSDLQWVWKHQDWLYHDVDVRUWRITXLQWHVVHQFHRIHYLO
7KHQDWLYHLVGHFODUHGLQVHQVLEOHWRHWKLFVKHUHSUHVHQWVQRWRQO\WKHDEVHQFH
RIYDOXHVEXWDOVRWKHQHJDWLRQRIYDOXHV+HLVOHWXVGDUHWRDGPLWWKHHQHP\RI
YDOXHVDQGLQWKLVVHQVHKHLVWKHDEVROXWHHYLO)DQRQ$QG+RPL%KDEKDWRR
DVVHUWV WKDW ³WKH REMHFWLYH RI FRORQLDO GLVFRXUVH LV WR FRQVWUXH WKH FRORQL]HG DV D
SRSXODWLRQ RI GHJHQHUDWH W\SHV RQ WKH EDVLV RI UDFLDO RULJLQ LQ RUGHU WR MXVWLI\
FRQTXHVWDQGWRHVWDEOLVKV\VWHPVRIDGPLQLVWUDWLRQDQGLQVWUXFWLRQ´%KDEKD7KH
/RFDWLRQ RI &XOWXUH 5REHUW <RXQJ VD\V ³6LQFH WKH HDUO\ V
SRVWFRORQLDOLVP KDV GHYHORSHG D ERG\ RI ZULWLQJ WKDW DWWHPSWV WR VKLIW WKH
GRPLQDQWVZD\VLQZKLFKWKHUHODWLRQVEHWZHHQWKHZHVWHUQDQGWKHQRQZHVWHUQ
SHRSOHDQGWKHLUZRUOGDUHYLHZHG´<RXQJ7RFRXQWHUWKHHVWDEOLVKHGLGHDRI
LQKHUHQWHYLOLQWKHQRQZKLWHSHRSOHSRVWFRORQLDOLVPVKRZVWKHWUXHVLGHRIWKH
SKRWRJUDSKFOLFNHGE\WKHZHVWHUQV$QGWKHSXUSRVHRIWKHSRVWFRORQLDOZULWHUVLV
WR H[SRVH WKH UHDOLW\ EHKLQG WKH VWHUHRW\SHV DQG VKRZ WKH WUXH QDWXUH RI WKH
QDWLYHV&RQUDGULVHVDERYHWKHVHELQDU\RSSRVLWLRQVDV%HQLWD3DUU\REVHUYHV
,I &RQUDG GRHV XVH ZKLWH DQG OLJKW DV WKH VLJQV RI WUXWK LQWHJULW\
NQRZOHGJH GHFHQF\ DQG UHDVRQ KH DOVR DQQXOV WKHVH DVVRFLDWLRQV
ZKHQ WKH FRQVSLFXRXV REMHFWV RI LPSHULDOLVW GHVLUH WKH JROG RI
$OPD\HU¶V )ROO\ WKH LYRU\ RI +HDUW RI 'DUNQHVV DQG WKH VLOYHU RI
1RVWURPR VHUYH DV HPEOHPV RI DYDULFH DQG DJHQWV RI FRUUXSWLRQ
&RQYHUVHO\ZKLOHEODFNGRHVVLJQLI\HYLOGHDWKKHOOFKDRVDQGPRUDO
QXOOLW\ LW LV DOVR WKH ILJXUH RI WUDQVFHQGHQW UHDOLW\ DQG XOWLPDWH
PHDQLQJV RYHUDUFKLQJ WKH IDFLOH DQG WUDQVSDUHQW WUXWKV YLVLEOH LQ WKH
OLJKW3DUU\
*RLQJDZD\IURPWKHXVHRIWKHVWHUHRW\SHV&RQUDGOLNHDQDQWLLPSHULDOLVW
JHQXLQHO\SUDLVHVWKHQDWLYHVZKHUHYHUDQGZKHQHYHUKHILQGVDFKDQFH+HFRPHV
IURP WKH SRVLWLRQ RI WKH RSSUHVVRU EXW KLV ILFWLRQ VSHDNV IRU WKH RSSUHVVHG +H
EHORQJVWRWKHKHDUWRIWKHLPSHULDOVHWXSEXWGHIHQGVWKHVXEMXJDWHG)URPWKH
FHQWUH &RQUDG WDONV DERXW WKH PDUJLQDOL]HG DQG UHSODFHV WKH IDOVH SLFWXUH RI WKH
QDWLYHVZLWKDWUXHRQH $SDVVDJH DERXWWKHFDQQLEDOVRQWKHEULJRI0DUORZLQ
+HDUWRI'DUNQHVVGHVFULEHVWKHDQWLLPSHULDOLVWVWDQFHRIWKHZULWHU0DUORZVD\V
³:KDWSRVVLEOHUHVWUDLQW":DVLWVXSHUVWLWLRQGLVJXVWSDWLHQFHIHDU±
RUVRPHNLQGRISULPLWLYHKRQRU"1RIHDUFDQVWDQGXSWRKXQJHUQR
SDWLHQFH FDQ ZHDU LW RXW GLVJXVW VLPSO\ GRHV QRW H[LVW ZKHUH KXQJHU
LV DQG DV WR VXSHUVWLWLRQ EHOLHIV DQG ZKDW \RX PD\ FDOO SULQFLSOHV
WKH\DUHOHVVWKDQFKDIILQDEUHH]H$QGWKHVHFKDSVWRRKDGQR
HDUWKO\UHDVRQIRUDQ\NLQGRIVFUXSOH5HVWUDLQW,ZRXOGMXVWDVVRRQ
KDYHH[SHFWHGUHVWUDLQWIURPDK\HQDSURZOLQJDPRQJVWWKHFRUSVHVRI
DEDWWOHILHOG%XWWKHUHZDVWKHIDFWIDFLQJPH±WKHIDFWGD]]OLQJOLNH
WKHIRDPRQWKHGHSWKVRIWKHVHDOLNHWKHULSSOHRIDQXQIDWKRPDEOH
HQLJPD´+2'
0DUORZDUJXHVWKDWWKRXJKWKHIRUFHRIVWDUYDWLRQLVIHOWE\WKHVDYDJHV\HWXQOLNH
WKH &RPSDQ\ ² ZLWK .XUW] DV LWV SURGLJ\ LQ WKH &RQJR ² WKH VDYDJH $IULFDQV
VKRZDQKRQRXUDEOHUHVWUDLQW7KHRVWHQVLEOHJRYHUQLQJVXSHULRUVREYLRXVO\ODFN
WKLVVHOIGLVFLSOLQH,QWKHZKLWHVRQHFDQVHHDQLQVDWLDEOHKXQJHUIRULYRU\7KH\
XVHEUXWDOPHDQVWR DFTXLUHWKHGHVLUHGREMHFW 7KHFDQQLEDOVIROORZVHOIFRQWURO
EHFDXVH RI WKHLU EHOLHI LQ VRPH VXSHUVWLWLRQV 7KH LQQRFHQW QDWLYHV KDYH QRW
DEDQGRQHG WKHLU IDLWK LQ WKHLU RZQ FRQYHQWLRQV ULWXDOV DQG FXVWRPV 7KH
GHVFULSWLRQRIWKHVNXOOVRIWKHDVVXPHGHQHPLHVKHOGRQWKHSROHVDURXQG.XUW]¶V
KXWLVWKHVLPSOHVWDQGFOHDUHVWH[DPSOHRIWKHPLVXVHRISRZHUE\DZKLWHZKR
XQOLNHWKHFDQQLEDOVFRXOGQRWUHVWUDLQKLPVHOIIURPLQGXOJLQJLQEUXWHFUXHOW\
7KH FDQQLEDO¶V VHQVH RI UHVWUDLQW FDQ EH VHW DJDLQVW WKH DPRUDOLW\ DQG
GLVKRQHVW\RIQRWRQO\ .XUW]EXWWKDWRIWKHPHPEHUVRIWKH(OGRUDGR([SORULQJ
([SHGLWLRQ DV ZHOO 0DUORZ LURQLFDOO\ GHVFULEHV WKH ZRUNLQJ RI WKH H[SHGLWLRQ
ZKLFKLQWXUQVWDQGVIRUODFNRIUHVWUDLQWLQWKHPHPEHUVRIWKHVXSHULRUUDFH+H
VD\V
³7KLV GHYRWHG EDQG FDOOHG LWVHOI WKH (OGRUDGR ([SORULQJ ([SHGLWLRQ
DQG,EHOLHYHWKH\ZHUHVZRUQWRVHFUHF\7KHLUWDONKRZHYHUZDVWKH
WDON RI VRUGLG EXFFDQHHUV LW ZDV UHFNOHVV ZLWKRXW KDUGLKRRG JUHHG\
ZLWKRXWDXGDFLW\DQGFUXHOZLWKRXWFRXUDJHWKHUHZDVQRWDQDWRPRI
IRUHVLJKWRURIVHULRXVLQWHQWLRQLQWKHZKROHEDWFKRIWKHPDQGWKH\
GLGQRWVHHPDZDUHWKHVHWKLQJVDUHZDQWHGIRUWKHZRUNRIWKHZRUOG´
+2'
&RQUDG¶V FRQWHPSW IRU WKH EDQG RI GLVJXVWLQJ EXFFDQHHUV RI WKH (OGRUDGR
([SORULQJ ([SHGLWLRQ SRLQWV WRZDUGV WKH GHEDVHPHQW RI WKH KLJK YDOXHV
SURSDJDWHG E\ WKHP 7KH FUHHG RI VXFK SHRSOH SRVLWV PRUDO UHVSRQVLELOLW\ RQ
WKHPEXWWKHLUDFWXDOSXUSRVHLVRQO\WROXUHWKHQDWLYHVDZD\IURPWKHLU ULFKHV
&RQUDG H[SRVHV WKH DEVXUGLW\ DQG LQDSSURSULDWHQHVV RI GHPDQGLQJ SULQFLSOHV
DGYDQFHGE\WKHVXSHULRUFRORQLDOVHWXS+LVZRUNVVKRZWKDWWKHSK\VLFDOZDQW
DQG PHQWDO VXIIHULQJ DUH WKH SULFH WKDW WKH QRQZKLWHV KDYH WR SD\ IRU WKH
XQZDQWHGFLYLOL]LQJPLVVLRQ
2QWKHRQHKDQG0DUORZGHSLFWVWKHOXGLFURXVQHVVRIWKHFRORQLDOVHWXSLQ
WKHSRUWUD\DORIWKH(OGRUDGR([SORULQJ([SHGLWLRQDQGRQWKHRWKHUKHEHVWRZV
WKHQRQZKLWHVZLWKWKHIHHOLQJRIKXPDQLW\ZKLFKDFFRUGLQJWRKLPWKHZKLWHV
ODFN0DUORZ¶VH[SUHVVLRQRIKLVJULHIDWWKHGHDWKRIKLVKHOPVPDQVKRZVKLVDQG
LQGLUHFWO\WKHDXWKRU¶VFRPSDVVLRQIRUWKHRWKHUUDFH+HVD\V
³, PLVVHG P\ ODWH KHOPVPDQ DZIXOO\ , PLVVHG KLP HYHQ ZKLOH KLV
ERG\ ZDV VWLOO O\LQJ LQ WKH SLORWKRXVH 3HUKDSV \RX ZLOO WKLQN LW
SDVVLQJ VWUDQJH WKLV UHJUHW IRU D VDYDJH ZKR ZDV QR PRUH DFFRXQW
WKDQ D JUDLQ RI VDQG LQ D EODFN 6DKDUD :HOO GRQ¶W \RX VHH KH KDG
GRQHVRPHWKLQJKHKDGVWHHUHGIRUPRQWKV,KDGKLPDWP\EDFN±D
KHOS±DQLQVWUXPHQW,WZDVDNLQGRISDUWQHUVKLS+HVWHHUHGIRUPH±
, KDG WR ORRN DIWHU KLP , ZRUULHG DERXW KLV GHILFLHQFLHV DQG WKXV D
VXEWOHERQGKDGEHHQFUHDWHGRIZKLFK ,RQO\EHFDPHDZDUHZKHQLW
ZDVVXGGHQO\EURNHQ$QGWKHLQWLPDWHSURIXQGLW\RIWKDWORRNKHJDYH
PHZKHQKHUHFHLYHGKLVKXUWUHPDLQVWRWKLVGD\LQP\PHPRU\±OLNH
DFODLPRIGLVWDQWNLQVKLSDIILUPHGLQDVXSUHPHPRPHQW´+2'
0DUORZ¶VUHFRJQLWLRQRIDGLVWDQWNLQVKLSZLWKKLVKHOPVPDQUHSUHVHQWVKLVGHVLUH
WR FURVV WKH UDFLDO DQG WKH FXOWXUDO ERUGHUV 0DUORZ¶V UHJUHW RYHU WKH GHDWK RI D
EODFN KHOPVPDQ KLV UHFRJQLWLRQ RI SDUWQHUVKLS DQG NLQVKLS EHWZHHQ WKH WZR
DQWDJRQLVWLF FXOWXUHV VKRZV WKDW KH ZDQWV WR DOWHU WKH SURSDJDWHG FXOWXUDO
SULRULWLHVDQGJLYHDFHQWUDOSODFHWRWKHVXERUGLQDWHGVXEFXOWXUHV7KHGHVFULSWLRQ
RI WKH ERQG EHWZHHQ 0DUORZ DQG KLV KHOPVPDQ H[SODLQV KRZ WKH DXWKRU ULVHV
DERYHWKHLGHQWLW\RIDIDQDWLFDOLPSHULDOLVWDQGFKDOOHQJHVWKHLGHDVRIDXWKRULW\
UHVSRQVLELOLW\KLHUDUFK\SRZHUDQGVHOIHVWHHP
$QRWKHU H[DPSOH RI WKH QDWLYHV¶ VWUHQJWK LQ &RQUDG FDQ EH VHHQ LQ 1LQD¶V
DFFHSWDQFH RI KHU PRWKHU¶V VRFLHW\ LQ $OPD\HU¶V )ROO\ 7KH FRQGHVFHQGLQJ
FLYLOL]DWLRQRI$OPD\HUKDVQRWEHHQDEOHWRGHVWUR\1LQD¶VVRXO6KHRIWHQODSVHV
LQWRD³VDYDJHPRRG´DQGIHHOVRQHZLWKKHUVDYDJHFXOWXUH$)'HVSLWHWKH
IDFWWKDWDZKLWHPDQ¶VEORRGUXQVLQWKHYHLQVRIWKLVJLUOWKHZKLWHSHRSOHUHMHFW
KHUIRUEHLQJDKDOIFDVWH6KHLVWKURZQDZD\E\WKHZKLWHSHRSOHRQWKHEDVLVRI
WKHLQIHULRULW\RIKHUPRWKHUDQGKHUQRQZKLWHEORRG6WDSHDOVREHOLHYHVWKDW³
DIWHUWHQ\HDUVRI(XURSHDQHGXFDWLRQLQ6LQJDSRUH1LQDFDUULHVRQO\WKHVFDUVRI
WKH ZKLWH PDQ¶V UDFLDO SUHMXGLFH DQG LV VWUXFN PRUHRYHU E\ WKH HPSWLQHVV RI
(XURSHDQFXOWXUHZKHQFRQWUDVWHGZLWKKHUPRWKHU¶VDQG'DLQ¶VVWRULHVRIQDWLYH
FRXUDJH DQG DGYHQWXUH´ 6WDSH 7KH UHDGHUV PD\ VHH WZR SUHVVXUHV
ZRUNLQJ DW WKH VDPH WLPH LQ 1LQD :KHQ 1LQD ZDQGHUV DORQH LQ 6DPELU VKH
XQGHUJRHV WKH GLOHPPD RI KHU EHORQJLQJ WR HLWKHU RI WKH WZR UDFHV DQG FXOWXUHV
$QGILQDOO\KHUDFFHSWDQFHRIKHUPRWKHU¶VVRFLHW\SURYHVWKDWWKHEODFNFXOWXUH
FDQSUHYDLORYHUWKHZKLWHRQH2QHPD\DVNZK\FRXOGWKH(XURSHDQVRFLHW\QRW
DFFHSW WKH JLUO ZLWK WKH VDPH YLJRXU DQG HDVH DV GR WKH QRQZKLWH SHRSOH OLNH
'DLQKLVFRPPXQLW\DQG1LQD¶VPRWKHU"7KRXJKIRUWKHQRQZKLWHVWRRVKHLVD
KDOIFDVWH D KDOI ZKLWH RU D KDOI QRQZKLWH \HW WKH\ LQWHQG WR JLYH KHU D
FRPIRUWDEOH DQG KDSS\ OLIH $V WKH EODFN VRFLHW\ KDV DFFHSWHG 1LQD VKH WRR LV
IDVFLQDWHGE\'DLQDQGKLVFXOWXUH7KHUHLVDQHTXDODPRXQWRIUHFHSWLRQRQERWK
WKH VLGHV &RQUDG WKHUHIRUH SUDLVHV WKH LQQRFHQFH DQG VXSSOHQHVV RI WKH QRQ
ZKLWH ZRUOG RYHU WKH ZKLWH 8QOLNH WKH KHJHPRQ\ WKH QRQZKLWH SHRSOH DFFHSW
WKHKDOIFDVWHZLWKRXWPXFKFRPPRWLRQ
7DNLQJWKHVDPHDUJXPHQWIXUWKHULWPD\EHREVHUYHGWKDWLQRWKHUZRUNVRI
&RQUDGDVZHOOWKHHXORJL]LQJRIWKHQRQZKLWHZRUOGLWVKLVWRU\DQGLWVFXOWXUHLV
FOHDUO\ HYLGHQW &RQUDG JLYHV VSDFH WR WKH GHYRWLRQ RI WKH QRQZKLWH SHRSOH WR
WKHLU VRFLHW\ WUDGLWLRQV DQG FXVWRPV 7KRXJK WKH QRQZKLWH ZRUOG LV WRUQ E\ WKH
SXOOVDQGSUHVVXUHVRIWKHZKLWHLQWHUIHUHQFHDQGLQIOXHQFHV\HWLWNHHSVDOLYHLWV
ILGHOLW\ DQG FRPPLWPHQW $W WKH EHJLQQLQJ RI 7KH 5HVFXH &RQUDG VD\V WKDW WKH
YLFHV DQG WKH YLUWXHV RI WKH 'XWFK WKH (QJOLVK WKH 3RUWXJXHVH WKH 6SDQLDUGV
KDYH EHHQ GLVSOD\HG LQ WKH FRQTXHVW RI WKH QRQZKLWH UHJLRQV 7KRXJK WKH IRXU
ZKLWH UDFHV DQG FRPPXQLWLHV LQWHUIHUHG ZLWK WKH QRQZKLWH SURYLQFHV \HW VD\V
&RQUDG WKH QRQZKLWH UHJLRQV ZHUH QRW UREEHG RI DOO WKHLU P\VWHU\ DQG WKH
URPDQFHRIWKHLUSDVW&RQUDGVD\VWKDWWKHQRQZKLWHUDFHKDVIRXJKWDJDLQVWWKH
ZKLWHVDQGWKHZKLWHVKDYHQRWEHHQDEOHWRFKDQJHWKHOR\DOQDWXUHRIWKHQRQ
ZKLWHV7KHQDWLYHVKDYHNHSWDOLYHWKHLUORYHRIOLEHUW\DQGWKHIDQDWLFDOGHYRWLRQ
WRWKHLUFKLHIV
7KH DERYH SDUDJUDSK WDONV DERXW WKH GHYRWLRQ RI WKH QRQZKLWH SHRSOH WR
WKHLU FXOWXUH DQG WUDGLWLRQV LQ 7KH 5HVFXH ,Q WKH VDPH ZRUN &RQUDG SUHVHQWV D
ODXGDEOHSRUWUD\DORI-DIILU¶VGHYRWLRQWRKLVGXW\ DQGWRKLVFKLHI+H JLYHVKLP
FUHGLWIRUEHLQJD³IHDUOHVVDQGZLO\´PHVVHQJHU75-DIILULV³WKHPDQIRU
GLIILFXOWPLVVLRQVDQGDERUQPHVVHQJHU´75&RQUDGVD\VWKDW-DIILU³LQKLV
OLIH RI D IDLWKIXO PHVVHQJHU KDG EHHQ DFFXVWRPHG WR EH HDWHQ DOLYH´ E\ WKH
ELWLQJ PRVTXLWRHV 75 $W JUHDW ULVN WR KLV OLIH -DIILU UXQV DZD\ IURP WKH
SDUW\ RI FDSWLYHV DW RQH FDOO RI KLV PDVWHU +DVVLP :KHQ -DIILU UXQV ³D GHHS
PXUPXURIVXUSULVHDURVHLQWKHDUPHGSDUW\DVSHDUZDVWKURZQDVKRWZDVILUHG
WKUHH RU IRXU PHQ GDVKHG LQWR WKH IRUHVW EXW WKH\ VRRQ UHWXUQHG FUHVWIDOOHQ ZLWK
DSRORJHWLF VPLOHV ´ 75 7KH QDUUDWRU SUDLVHV -DIILU WKH MXGLFLRXV
LQWHOOLJHQWDQGEUDYHQDWLYHDQGVD\VWKDWWKLVPDQKDVDFKLHYHGHIILFLHQF\LQKLV
SURIHVVLRQ+HQDUUDWHVWKDW
LQ WKH H[HUFLVH RI WKH LPSRUWDQW IXQFWLRQV KH NQHZ KRZ WR JOLGH
OLNH D VKDGRZ FUHHS OLNH D VQDNH DQG DOPRVW EXUURZ KLV ZD\
XQGHUJURXQG +H ZDV -DIILU ZKR KDG QHYHU EHHQ IRLOHG 1R ERJ
PRUDVV JUHDW ULYHU RU MXQJOH FRXOG VWRS KLP +H ZRXOG KDYH
ZHOFRPHG WKHP ,Q PDQ\ UHVSHFWV WKH\ ZHUH WKH IULHQGV RI D FUDIW\
PHVVHQJHU75
,I RQ WKH RQH KDQG &RQUDG VKRZV WKDW WKH ZKLWH SHRSOH ZDQW WR ULVH LQ WKHLU
SURIHVVLRQ HYHQ WKRXJK WKH\ VKLUN ZRUN DQG RQ WKH RWKHU KH LOOXVWUDWHV WKH
GHYRWLRQ DQG JHQXLQH GHGLFDWLRQ RI WKH QDWLYHV WRZDUGV WKHLU ZRUN DQG PDVWHUV
&RQUDGVHHPVWRUHYHUVHWKHELQDU\RSSRVLWLRQVDQGWKHSRVLWLYHWUDLWVDVVRFLDWHG
ZLWK WKH ZKLWHV DUH VHHQ WR EH DQ LQWHJUDO SDUW RI WKH QDWXUH RI WKH QRQZKLWH
SHRSOH
,Q 9LFWRU\ DOVR WKH UHDGHUV ZRXOG ILQG DQ H[DPSOH RI &RQUDG¶V OLNLQJ DQG
DSSUHFLDWLRQRIWKHQRQZKLWHV/LNH-DIILULQ7KH5HVFXHKHUH&RQUDGJLYHVVSDFH
WR DQRWKHU QRQZKLWH +H\VW¶V IDLWKIXO &KLQHVH VHUYDQW :DQJ :DQJ UHSUHVHQWV
ERWKGHYRWLRQDQGLQWHOOLJHQFH:DQJGRHVQRWOHDYHWKHVHUYLFHRI+H\VWHYHQDIWHU
WKH OLTXLGDWLRQ RI WKH 7URSLFDO %HOW &RDO &RPSDQ\ 7KH &KLQDPDQ DFFRPSDQLHV
+H\VW WR 6DPEXUDQ :DQJ¶V XQIDWKRPDEOH EHKDYLRXU IDVFLQDWHV +H\VW 2Q WKH
LVODQG:DQJDSSHDUVDQGGLVDSSHDUVLQVXFKDZD\WKDWLWUHPDLQVWRWDOO\P\VWHULRXV
WRKLVPDVWHU+HPRYHVDERXWRQWKHLVODQG³ZLWKRXWSHUFHSWLEOHVWLURUVRXQG´DQG
KH YDQLVKHV ³RXW RI VLJKW´ EXW ³E\ QR PHDQV RXW RIKHDULQJ´ 9 :DQJ
QHYHU LQWHUIHUHV LQ WKH OLIH RI KLV PDVWHU HYHQ ZKHQ +H\VW EULQJV /HQD ZLWK KLP
-XVWDV-DIILULVHIILFLHQWLQKLVSURIHVVLRQVLPLODUO\:DQJZLWKKLVVKDUSPLQGFDQ
VHQVHWKHGDQJHULQWKHDUULYDORIWKHWKUHHQHZZKLWHPHQRQWKHLVRODWHGLVODQG6R
KH SUHSDUHV IRU KLV VDIHW\ 7KH QRQZKLWHV DUH LQ D EHWWHU SRVLWLRQ WR LGHQWLI\ HYLO
DPRQJWKHHQHP\WKDQDUHWKHZKLWHV²WKHVXSSRVHGO\PRUHLQWHOOLJHQWDQGVKDUS
SHRSOH 7KH UHDGHUV DUH PDGH WR IHHO SLW\ IRU :DQJ ZKHQ +H\VW WKLQNV WKDW KLV
IDLWKIXO VHUYDQW ZRXOG NLOO KLP &RQUDG PD\ QRW KDYH JLYHQ VSDFH WR WKH YRLFH RI
:DQJ EXW KH PDNHV KLV QRLVHOHVVQHVV DQG YRLFHOHVVQHVV KHDUG LQ KLV IDLWKIXOQHVV
DQG FOHYHUQHVV %\ EXLOGLQJ XS D EDUULFDGH DJDLQVW WKH WKUHH (XURSHDQV :DQJ
H[SUHVVHV UHVLVWDQFH RI WKH QRQZKLWHV WR (XURSHDQ FUXHOW\ DQG GRPLQDWLRQ /LNH
:DQJDQRWKHUQRQZKLWHVHUYDQWZKRGHVHUYHVDPHQWLRQKHUHLV$OLLQ$OPD\HU¶V
)ROO\ 8QOLNH RWKHU QRQZKLWHV ZKR LQGXOJH LQ MHDORXV\ DQG LQWULJXHV DJDLQVW
$OPD\HURQHPDQZKRUHPDLQVIDLWKIXOWR$OPD\HUWLOOKLVGHDWKLVKLVQRQZKLWH
VHUYDQW $OL $OL WRR LV &RQUDG¶V SURWRW\SH VHUYDQW OLNH :DQJ 7KHUHIRUH VRPH RI
&RQUDG¶VQRQZKLWHFKDUDFWHUVPD\EHVHHQDVV\PEROLFILJXUHV
,Q7KH6KDGRZ/LQH&RQUDG¶VFRPPLVHUDWLRQIRUWKHQRQZKLWHVLVVHHQLQ
WKH SRUWUD\DO RI WKH FUHZ ZKLFK ZRUNV KHURLFDOO\ DORQJ ZLWK WKH ZKLWH &DSWDLQ
&RQUDGVD\VWKDWOLNHWKHPDVWHUWKHFUHZWRRLVODXGDEOH+HVD\VWKDWIDWHSOD\V
KDYRFZLWKWKHPLQWKHJXLVHRIGHDWKDQGGLVHDVHEXWHYHQWKHQWKHFUHZGRHVQRW
ORVHFRXUDJH7KHQDUUDWRUDSSUHFLDWHVWKHFUHZDQGVD\V
³7KH IDFW ZDV WKDW GLVHDVH SOD\HG ZLWK XV FDSULFLRXVO\ YHU\ PXFK DV
WKHZLQGVGLG,WZRXOGJRIURPRQHPDQWRDQRWKHUZLWKDOLJKWHURU
KHDYLHU WRXFK ZKLFK DOZD\V OHIW LWV PDUN EHKLQG VWDJJHULQJ VRPH
NQRFNLQJRWKHUVRYHUIRUDWLPHOHDYLQJWKLVRQHUHWXUQLQJWRDQRWKHU
VR WKDW DOO RI WKHP KDG QRZ DQ LQYDOLGLVK DVSHFW DQG D KDXQWHG
DSSUHKHQVLYH ORRN LQ WKHLU H\HV 7KH\ ZHUH DOO VR UHGXFHG E\
VLFNQHVVWKDWQRZDWFKHVFRXOGEHNHSW7KRVHZKRZHUHDEOHWRZDON
UHPDLQHGDOOWKHWLPHRQGXW\O\LQJDERXWLQWKHVKDGRZVRIWKHPDLQ
GHFN WLOO P\ YRLFH UDLVHG IRU DQ RUGHU ZRXOG EULQJ WKHP WR WKHLU
HQIHHEOHGIHHWDWRWWHULQJOLWWOHJURXSPRYLQJSDWLHQWO\DERXWWKHVKLS
ZLWKKDUGO\DPXPPHUDZKLVSHUDPRQJVWWKHPDOO$QGHYHU\WLPH,
KDG WR UDLVH P\ YRLFH LW ZDV ZLWK D SDQJ RI UHPRUVH DQG SLW\´ 76/
%HLQJ NQRFNHG GRZQ E\ GLVHDVH RQFH RU WZLFH HYHU\ PHPEHU RI WKH FUHZ LV
DSSUHKHQVLYHEXWWKH\GRQRWVWHSEDFN$OORIWKHPSHUIRUPWKHLUGXW\XQWLOWKH\
ULVHYLFWRULRXVDJDLQVWWKHKRVWLOHHQYLURQPHQWGLVHDVHDQGGHDWK7KHUHDGHUVDUH
PDGHWRUHFRJQL]HDQGDSSUHFLDWHWKHSHUVHYHUDQFHGHWHUPLQDWLRQUHVROXWLRQDQG
ZLOOSRZHURIWKHFUHZ,QVSLWHRIVWRUPIHDUDQGGHDWKWKHFUHZREH\VWKHRUGHUV
RIWKH&DSWDLQDQGLVDEOHWRFDUU\WKHVKLSWRLWVGHVWLQDWLRQ:KHQWKH&DSWDLQLV
WRWHOOWKHFUHZWKDWWKHVKLSGRHVQRWKDYHTXLQLQHKHIHHOVWKDWWKHFUHZZRXOG
WXUQDQJU\EXWWKH&DSWDLQGRHVQRWHQFRXQWHUDQ\UHSURDFKIXOH\HV+HILQGVWKDW
³WKHH[SUHVVLRQRIVXIIHULQJLQWKHLUH\HVZDVLQGHHGKDUGHQRXJKWREHDU%XWWKDW
KHFRXOGQ¶WKHOS´76/7KH&DSWDLQGHVFULEHVWKRVHPHQDVWKH\
ZHUHWKHJKRVWVRIWKHPVHOYHVDQGWKHLUZHLJKWRQDURSHFRXOGEHQR
PRUHWKDQWKHZHLJKWRIDEXQFKRIJKRVWV,QGHHGLIHYHUDVDLOZDV
KDXOHG XS E\ VKHHU VSLULWXDO VWUHQJWK LW PXVW KDYHEHHQ WKDW VDLO IRU
SURSHUO\VSHDNLQJWKHUH ZDVQRWDPXVFOHHQRXJKIRUWKHWDVNLQWKH
ZKROHVKLSOHWDORQHWKHPLVHUDEOHORWRIXVRQWKHGHFN2IFRXUVH,
WRRNWKHOHDGLQWKHZRUNP\VHOI7KH\ZDQGHUHGIHHEO\DIWHUPHIURP
URSHWRURSHVWXPEOLQJDQGSDQWLQJ$QG\HW7KH\WRLOHGOLNH7LWDQV
76/
$QGWKHQDUUDWRUVD\VWKDWWKLVLVWKHUHDVRQWKDWWKHFUHZEHFRPHV³VRZRUWK\
RI P\ XQG\LQJ UHJDUG´ 76/ &RQUDG KDV VKRZQ WKH GHIHUHQFH OR\DOW\
WUXVWZRUWKLQHVV DQG REHGLHQFH RI WKH QRQZKLWH FUHZ ZKLFK UDLVHV WKHP LQ WKH
H\HV RI WKH UHDGHUV &RQUDG VLWXDWHV WKH QRQZKLWHV RQ VXFK KLJK D SHGHVWDO WKDW
WKHUHDGHUVDUHSURPSWHGWRSD\DWWHQWLRQWRWKHP
,WLVREVHUYHGWKDWJHQHUDOO\WKHZKLWHVKDYHDUHODWLRQVKLSRIKDUVKQHVVDQG
MHDORXV\ DPRQJVW WKHPVHOYHV ,Q $Q 2XWFDVW RI WKH ,VODQGV +XGLJ LV MHDORXV RI
/LQJDUG¶VOXFN:LOOHPVDQG$OPD\HUDUHHQYLRXVRIRQHDQRWKHU¶VSRVLWLRQDQG
LQ +HDUW RI 'DUNQHVV WKH 0DQDJHU LV VSLWHIXO WRZDUGV .XUW]¶V SRVLWLRQ
&RPSDULQJ WKH IULFWLRQDO UHODWLRQVKLS DPRQJVW WKH ZKLWHV LQ $Q 2XWFDVW RI WKH
,VODQGV DQG +HDUW RI 'DUNQHVV ZLWK WKH VPRRWK IULHQGVKLS EHWZHHQ ZKLWHV DQG
QRQZKLWHV LQ /RUG -LP DQG 7KH 5HVFXH &RQUDG VHHPV WR KLQW WKDW RQO\ WKH
XQFLYLOL]HG DQG WKH VDYDJH FDQ LQGXOJH LQ IULHQGVKLSV ZLWK ZKLWHV ZLWKRXW DQ\
FRQGLWLRQVDQGH[SHFWDWLRQV,Q/RUG-LP&RQUDGGHVFULEHV'DLQ:DULVLQSRVLWLYH
VKDGHV DV KH KDV GRQH ZLWK VRPH RWKHU PLQRU QRQZKLWH FKDUDFWHUV LQ KLV RWKHU
ZRUNV :LWKLQ D VKRUW VSDQ RI WLPH RI -LP¶V VWD\ LQ 3DWXVDQ D GHHS VHQVH RI
KXPDQ FRPUDGHVKLS JURZV EHWZHHQ -LP DQG 'DLQ :DULV UHJDUGOHVV RI WKHLU
FXOWXUDODQGUDFLDOGLIIHUHQFHV
'DLQ :DULV WKH GLVWLQJXLVKHG \RXWK ZDV WKH ILUVW WR EHOLHYH LQ KLP
>-LP@ WKHLUV ZDV RQH RI WKRVH VWUDQJH SURIRXQG UDUH IULHQGVKLSV
EHWZHHQEURZQDQGZKLWHLQZKLFKWKHYHU\GLIIHUHQFHRIUDFHVHHPV
WR GUDZ WZR KXPDQ EHLQJV FORVHU E\ VRPH P\VWLF HOHPHQW RI
V\PSDWK\ 2I 'DLQ :DULV KLV RZQ SHRSOH VDLG ZLWK SULGH WKDW KH
NQHZKRZWRILJKWOLNHDZKLWHPDQ7KLVZDVWUXHKHKDGWKDWVRUWRI
FRXUDJH ± WKH FRXUDJH LQ WKH RSHQ , PD\ VD\ ± EXW KH KDG DOVR D
(XURSHDQPLQG<RXPHHWWKHPVRPHWLPHVOLNHWKDWDQGDUHVXUSULVHG
WR GLVFRYHU XQH[SHFWHGO\ D IDPLOLDU WXUQ RI WKRXJKW DQ XQREVFXUHG
YLVLRQDWHQDFLW\RISXUSRVHDWRXFKRIDOWUXLVP/-
&RQUDG SUDLVHV 'DLQ :DULV DQG FRQVLGHUV KLP EHWWHU WKDQ -LP 7KH
VXSSRVHGO\ XQFLYLOL]HG HDVWHUQHU LV DV FRXUDJHRXV DQG DV LQWHOOLJHQW DV DQ\ RWKHU
(XURSHDQ0DUORZVD\V³,VSHDNRIKLPEHFDXVHKHKDGFDSWLYDWHGPH´/-
2ISHRSOHOLNH'LDQ:DULV0DUORZIHHOV³6XFKEHLQJV>DUH@RSHQWRWKH:HVWHUQ
H\HWKHKLGGHQSRVVLELOLWLHVRIUDFHVDQGODQGVRYHUZKLFKKDQJVWKHP\VWHU\
RIXQUHFRUGHGDJHV´/-6LPLODUIHHOLQJVRIIULHQGVKLSDQGEHOLHIDUHVHHQLQ
+DVVLPDQG,PPDGDIRU/LQJDUGLQ7KH5HVFXH/LQJDUGKDVSURPLVHGWKHVHWZR
QDWLYHVWKDWKHZRXOGKHOSWKHPWRUHJDLQWKHLUWKURQH%RWKWKHEURWKHUDQGVLVWHU
EHOLHYH /LQJDUG EOLQGO\ :KHQ /LQJDUG JHWV ODWH LQ UHDFKLQJ WKHVH SHRSOH WKH\
FRQWLQXHWREHOLHYHWKDW/LQJDUGFDQQHYHUIRUJHWWKHP$FFRUGLQJWRWKHPRQO\
/LQJDUG¶VGHDWKFDQFDXVHKLVGHOD\DWWKHDSSRLQWHGWLPH,QWKHLUUHODWLRQVKLSRI
IULHQGVKLSEHWZHHQWKHZKLWHVDQGWKHQRQZKLWHVWKHSHRSOHEHORQJLQJWRWKHVR
FDOOHGLQIHULRUUDFHKDYHWROD\GRZQWKHLUOLIHDVDFRVWIRUWKHLUIULHQGVKLSZLWK
WKH UDFLDOO\ VXSHULRU DJHQWV ,W LV VHHQ WKDW &RQUDG YDOXHV WKH XQFRQGLWLRQDO IDLWK
DQGLQQRFHQFHRIWKHQRQZKLWHV
&RQUDG VKRZV H[WUHPH QDLYHW\ RI WKH QRQZKLWH SHRSOH LQ WKHLU DEVROXWH
FRQILGHQFHUHOLDQFHDQGIULHQGVKLSZLWKWKHHQYR\VRIWKHVXSHULRUUDFH7KHQRQ
ZKLWHSHRSOHDUHGUDZQWRZDUGVWKHVRSKLVWLFDWHGFXOWXUDORUELWRIWKH:HVW7KHVH
YXOQHUDEOH SHRSOH EHFRPH YLFWLPV RI WKH JUDQGO\ GHVLJQHG FLYLOL]DWLRQ 7KH
LQQRFHQW$VLDWLFVDQG2ULHQWDOVKDYHWRVXIIHUWKHORVVRIWKHLUIDLWKLQWKHH[LOHVRI
(XURSH-LP¶VDQG/LQJDUG¶VGULIWWRZDUGVWKHOLJKWHUFRORXUOHDGVWRDWUDJLFDQG
IUDJPHQWHG OLIH IRU WKH QDWLYHV &RQUDG¶V SUHVHQWDWLRQ RI WKH IULHQGVKLS EHWZHHQ
WKH ZKLWHV DQG WKH QRQZKLWHV SURYLGHV D UHDVVXUDQFH WKDW KH ULVHV DERYH WKH
ELQDU\ RSSRVLWLRQV ZKHUH QRW RQO\ WKH 2ULHQW EXW WKH 2FFLGHQW DOVR UHSUHVHQWV
EDUEDULW\ 7KH GLUHFW DQG LQGLUHFW DJHQWV RI WKH :HVWHUQ (PSLUH DUH DQ H[WHQGHG
H[DPSOHRIHPERGLHGGHVSRWLVPDQGGLVOR\DOW\
&RQUDG¶VWKRXJKWIXODWWLWXGHWRZDUGVWKHQDWLYHVKLVXQGHUVWDQGLQJRIWKHLU
SDLQDQGVXIIHULQJKLVUHFRJQLWLRQRIWKHLUVWUHQJWKEULQJVKLPFORVHWRWKHEHOLHIV
RI5RXVVHDX5RXVVHDXLVNQRZQIRUKLVLGHDWKDWVDYDJHVDUHPRUDOO\VXSHULRUWR
WKH FLYLOL]HG EHFDXVH HYROXWLRQ DQG SURJUHVV LQVWHDG RI LPSURYLQJ HWKLFV KDV
FRUUXSWHG SHRSOH¶V PRUDOV ,Q PDQ\ RI KLV GLVFRXUVHV 5RXVVHDX GLVFXVVHV WKH
QDWLYHV RI WKH QRQZKLWH ODQGV DV QREOH EHLQJV ,Q DQ DQDO\VLV RI FORVHQHVV
EHWZHHQ WKH EDVLF LGHDV RI 5RXVVHDX DQG &RQUDG LW PD\ EH REVHUYHG WKDW LQ
$OPD\HU¶V )ROO\ +HDUW RI 'DUNQHVV $Q 2XWFDVW RI WKH ,VODQGV 7KH 5HVFXH
9LFWRU\ DQG /RUG -LP &RQUDG¶V LURQLF SUHVHQWDWLRQ RI UDFLVP UHYHDOV WKDW WKH
VDYDJHV DUH PRUDOO\ VXSHULRU WR WKH FLYLOL]HG &RQUDG DOVR SRUWUD\V WKDW WKH
FXOWXUHG SHRSOH ODFN SULQFLSOHV UHVWUDLQ VHOIFRQILGHQFH DQG LQWHJULW\ %\
DFFHQWXDWLQJWKHLQKHUHQWKXPDQLW\LQWKHQDWLYHVDVLWLVWKHFDVHRIWKHFDQQLEDOV
LQ +HDUW RI 'DUNQHVV -DIILU LQ 7KH 5HVFXH :DQJ LQ 9LFWRU\ DQG 'DLQ :DULV LQ
/RUG -LP &RQUDG¶V SXUSRVH LV WR VKDNH WKH JURXQGV XSRQ ZKLFK WKH FRORQL]HU
FODLPVVXSHULRULW\$FFRUGLQJWRWKHZHVWHUQEHOLHIV\VWHP³WKHFRQWUDVWEHWZHHQ
EODFN DQG ZKLWH KDV IRU FHQWXULHV VWRRG IRU WKH JRRG WUXH SXUH DQG EHDXWLIXO DV
RSSRVHG WR WKH HYLO LJQRUDQW FRUUXSW DQG DWURFLRXV 3DUU\ %XW &RQUDG
VKRZVV\PSDWK\WRZDUGVWKHVLGHOLQHG+HTXHVWLRQVDQGUHYHUVHVWKHVHWYDOXHV
DQG WKH FXVWRPDU\ XVDJH RI VWHUHRW\SHV RI WKH ZKLWH VRFLHW\ 7KH ZULWHU WKXV
H[SRVHVWKHDLPRIJOREDOH[SDQVLRQLVPDQGKHJHPRQ\E\H[SRVLQJJUDQGLORTXHQW
VSHHFKLI\LQJ DQG WKH VRUGLG DPELWLRQV RI WKH ZKLWHV +LV ZRUNV UDLVH VXVSLFLRQV
DJDLQVWWKHLGHRORJLFDOEDVLVRIWKHLPSHULDOV\VWHP
7KHUH H[LVWV D SUR[LPLW\ EHWZHHQ WKH QDWLYHV DQG QDWXUH ,W IDVFLQDWHV
FDSWLYDWHV DQG HQWKUDOV &RQUDG 7KH ZKLWH SRVWFRORQLDO DXWKRU TXHVWLRQV WKH
VXSHULRULW\ RI WKH ZKLWH UDFH EHFDXVH WKH\ FRXOG QRW VHH DQG XQGHUVWDQG WKH
$IULFDQV DQG WKH 0DOD\DQV DQG WKHLU KDUPRQ\ ZLWK WKHLU HQYLURQPHQW DQG
VXUURXQGLQJV ,Q &RQUDG ZH FDQ ILQG D UHIHUHQFH WRWKH UHODWLRQVKLS EHWZHHQ WKH
ZKLWH PDQ WKH QDWLYH DQG WKH SK\VLFDO QDWXUH RI WKH QRQZKLWH ODQGV 1RW PDQ\
ZULWHUV KDYH FKDOOHQJHG WKH HFRORJLFDO DQQLKLODWLRQ DQG H[WHUPLQDWLRQ XQOHDVKHG
E\WKHGRPLQDWLQJDXWKRULW\DV&RQUDGGRHV7KHVWXG\RIWKHDIILOLDWLRQEHWZHHQ
WKH(XURSHDQFRORQLDOUHJLPHVDQGWKHQRQKXPDQZRUOGRIWKHQRQZKLWHODQGV
LVLPSRUWDQWIURPWKHSRVWFRORQLDOSRLQWRIYLHZ*XKDDOVRVD\V
0RYLQJ PRUH ILUPO\ ZLWKLQ WKH SDUDPHWHUV RI HQYLURQPHQWDO KLVWRU\
SHU VH WKHUH LV WKH VWXG\ RI KXPDQ HQJDJHPHQW RYHU WLPH ZLWK WKH
SK\VLFDO HQYLURQPHQW RI WKH HQYLURQPHQW DV FRQWH[W DJHQW DQG
LQIOXHQFHLQKXPDQKLVWRU\*XKD
7KHVLJQLILFDQFHRIWKHUHODWLRQVKLSRIWKHQRQZKLWHQDWLYHVDQGWKHLUVXUURXQGLQJ
QDWXUH KDV QRW EHHQ VXIILFLHQWO\ UHFRJQL]HG 7KH VXSHULRU ZKLWH PDQ WULHV WR
FRQWUROWKHQRQZKLWHODQGVDQGQDWXUH+HIRUJHWVWKDWKHKDVQRWIDVKLRQHGDQG
FUHDWHGLW+HLVRQO\DVXSHUIOXRXVDQGLUUHOHYDQWHQWLW\LQGHWHUPLQLQJWKHQDWXUDO
VXUURXQGLQJVEXWKHWULHVWRFRQWUROWKHHQYLURQPHQWLQFHVVDQWO\,QWKHHSRFKRI
KLJKLPSHULDOLVP WKH ZKLWH PDQ HQGHDYRXUV WR UXOH QDWXUH DQG H[SORLW LW
FRPSOHWHO\7KHFRORQLDOVWDWHVWU\WRDVVXPHFRQWURORYHUQDWXUHZKLFKKDGEHHQ
IUHH RI SROOXWLRQ DQG WHFKQRORJLFDO GLVUXSWLRQ EHIRUH WKHLU DGYHQW ,Q &RQUDG¶V
ZRUNVWKHZKLWHUDFHWULHVWRSOD\KDYRFDQGEOHPLVKWKHQDWXUHZKLFKLVDKDELWDW
WRQRWRQO\WKHLQGLJHQHEXWWKHZKLWHVDVZHOO:LWKWKHLQWUXVLRQRIWKHVXSHULRU
UDFHWKHZHDWKHUWKHODQGVFDSHWKHIORUDDQGIDXQDXQGHUJRDFKDQJH
,W LV WKH QDWXUH WKH HQYLURQPHQW DQG WKH DWPRVSKHUH RI D SODFH WKDW
GHWHUPLQHVWKHFXOWXUHWKHDUWLVWLFVSDFHDQGWKHLGHRORJ\RIWKHFRQFHUQHGODQGWR
DJUHDWGHJUHH7KHDUWP\WKVDQGOLWHUDWXUHUHSUHVHQWWKHUHODWLRQVKLSEHWZHHQWKH
SHRSOH DQG WKHLU VXUURXQGLQJ QDWXUH $QG E\ GHVWUR\LQJ WKH QDWXUH DQG WKH
HQYLURQPHQWWKH(XURSHDQFRORQLDOLVPGHVWUR\VWKHDUWWKHFXOWXUHDQGWKHKLVWRU\
RIWKHRFFXSLHGODQGV)RUWKHZKLWHVWKHORFDOHFRV\VWHPDQGQDWXUHDSSHDUDVD
KDPSHULQJ SRZHU 7KH ZKLWHV FRQVLGHU WURSLFDO QDWXUH DV XQFRQJHQLDO EHFDXVH
WKH\ DUH LQIOLFWHG ZLWK GLVHDVHV LQIHFWLRQV DQG YDULRXV GLVRUGHUV %\ GHYHORSLQJ
DQG LPSOHPHQWLQJ WHFKQRORJLHV OLNH WKH ZRUN RI PDNLQJ D UDLOURDG DW WKH )LUVW
&RPSDQ\ 6WDWLRQ LQ +HDUW RI 'DUNQHVV WKH DJHQWV RI WKH WUDGLQJ FRPSDQ\
QRWLFHDEO\ PRGLI\ WKH SK\VLFDO EDFNGURS ZLWKRXW DFKLHYLQJ LQ DQ\ XVHIXO
GHYHORSPHQW7KHVXFFHVVLQFRQTXHULQJWKHQRQZKLWHODQGVLVQRWRQO\WKHUHVXOW
RI WKH DGYDQFHG DUWLOOHU\ EXW WKH ZUHFNDJH RI WKH DERULJLQDO ELRQHWZRUN 7KH
GHYHORSPHQW RI WKH ZKLWHV GHSHQGV RQ WKH HFRORJLFDO JHQRFLGH RI WKH QRQZKLWH
ODQGV
&RQUDG HPSKDVL]HV WKH ORVV RI WKH ZLOGHUQHVV DQG GHIHQGV WKH IRUPHU XQ
VSRLOW QDWXUH +H UHFRJQL]HV WKH WUXH DWWDFKPHQW EHWZHHQ WKH QDWLYHV DQG WKHLU
VXUURXQGLQJV ZKLFK WKH H\HV RI WKH PLJUDWHG GRPLQDWLQJ SRSXODWLRQ FDQQRW VHH
,QIDFWZKDWHQFKDQWVDQG\HWVWDUWOHV0DUORZWKHVSRNHVSHUVRQRI&RQUDGLVWKH
LQWHUPLQJOLQJ RI WKH ZLOGHUQHVV DQG WKH $IULFDQ QDWLYHV 2Q KLV MRXUQH\ XS WKH
ULYHULQ+HDUWRI'DUNQHVV0DUORZIHHOV
*RLQJXSWKDWULYHUZDVOLNHWUDYHOOLQJEDFNWRWKHHDUOLHVWEHJLQQLQJV
RI WKH ZRUOG ZKHQ YHJHWDWLRQ ULRWHG RQ WKH HDUWK DQG WKH ELJ WUHHV
ZHUHNLQJV$QHPSW\6WUHDPDJUHDWVLOHQFHDQLPSHQHWUDEOHIRUHVW
:HZHUHZDQGHUHUVRQWKHSUHKLVWRULFHDUWKRQDQHDUWKWKDWZRUH
WKHDVSHFWRIDQXQNQRZQSODQHWWKHUHZRXOGEHDJOLPSVHRIUXVK
ZDOOVRISHDNHGJUDVVURRIVDEXUVWRI\HOOVDZKLUORIEODFNOLPEVD
PDVVRIKDQGVFODSSLQJRIIHHWVWDPSLQJRIERGLHVVZD\LQJRIH\HV
URLOLQJ XQGHU WKH GURRS RI KHDY\ DQG PRWLRQOHVV IROLDJH +2' ,W VKRZV WKDW WKH ZLOGHUQHVV DQG LWV LQKDELWDQWV DUH DQ HYHUODVWLQJ ERG\ ,Q WKH
&RQJR WKH KXPDQ DQG WKH QRQKXPDQ IXVH LQWR RQH HQWLW\ ZKLFK IULJKWHQV DQG
IDVFLQDWHV0DUORZ7KURXJKKLVQDUUDWRU&RQUDGVKRZVWKDWZKLWHSHRSOHUHGXFH
WKH GZHOOHUV RI WKH QRQZKLWH ODQGV WR D PHUH PDVV RI ³KDQGV FODSSLQJ´ ³IHHW
VWDPSLQJ´ ³ERGLHV VZD\LQJ´ DQG ³H\HV UROOLQJ´ +2' 7KH ZKLWHV DUH
XQDEOH WR VHH WKH HPSDWK\ EHWZHHQ WKH ³EODFN OLPEV´ DQG ³WKH SHDNHG JUDVV
URRIV´³YHJHWDWLRQ´³WKHELJWUHHV´DQGWKH³LPSHQHWUDEOHIRUHVW´+2'7KH
VSHHFK RI WKH QRQZKLWHV LV QR PRUH WKDQ DQ ³LQFRPSUHKHQVLEOH IUHQ]\´ +2'
7KHXQEUHDNDEOHERQGEHWZHHQWKHEODFNQDWLYHVDQGWKHLUODQGLVEH\RQGWKH
XQGHUVWDQGLQJRIDQ\ZKLWHPDQ
$ OLWWOH ODWHU 0DUORZ FDQQRW FRPSUHKHQG WKH NLQVKLS EHWZHHQ .XUW]¶V
4XHHQ DQG WKH MXQJOH +H FDQQRW GHWHUPLQH WKH UHODWLRQVKLS RI RQHQHVV EHWZHHQ
WKHQDWLYHZRPDQDQGWKH&RQJRMXQJOH+HVD\V
6KHZDONHGZLWKPHDVXUHGVWHSVWUHDGLQJWKHHDUWKSURXGO\ZLWKD
VOLJKW MLQJOH DQG IODVK RI EDUEDURXV RUQDPHQWV 6KH KDG EUDVV
OHJJLQJV WR WKH NQHHV EUDVV ZLUH JDXQWOHWV WR WKH HOERZ D FULPVRQ
VSRWRQKHUWDZQ\FKHHNLQQXPHUDEOHQHFNODFHVRIJODVVEHDGVRQKHU
QHFNVKHPXVWKDYHKDGWKHYDOXHRIVHYHUDOHOHSKDQWWXVNVXSRQ
KHU6KHZDVVDYDJHDQGVXSHUEZLOGH\HGDQGPDJQLILFHQWWKHUHZDV
VRPHWKLQJRPLQRXVDQGVWDWHO\LQKHUGHOLEHUDWHSURJUHVV+2'
7KH 4XHHQ LV GHVFULEHG DV ³VDYDJH DQG VXSHUE´ +2' +HU VRXO LV PDWFKHG
ZLWK VDYDJH DQG ZLOG WKH VSLULW RI WKH MXQJOH 7KH GHVFULSWLRQ VKRZV WKDW WKH
QHJDWLYH WUDLWV RI WKH ELQDU\ RSSRVLWLRQ DUH DWWDFKHG ZLWK KHU %XW WKH 4XHHQ¶V
RQHQHVV ZLWK KHU VXUURXQGLQJV KDV EHHQ LJQRUHG 7KLV SURSLQTXLW\ LV SHUKDSV D
UHDVRQ ZKLFK ELQGV WKHVH QDWLYHV WR WKHLU ODQGV XQOLNH WKH ZKLWHV ZKR OLYH DV
GLVORFDWHGH[LOHV
7KHVDPHWRQH FRQWLQXHVLQ7KH6KDGRZ/LQHZKHUH&RQUDGGHVFULEHVWKH
2ULHQWDOFDSLWDOZKLFKLVRQHZLWKQDWXUHEHFDXVHLWKDVQRWEHHQLQWUXGHGVSRLOHG
DQGSROOXWHGE\WKHZKLWHV&RQUDGJLYHVWKHGHVFULSWLRQRIWKHORZEURZQKRXVHV
PDGH RI EDPERR 7KH QDUUDWRU VD\V ³6RPH RI WKRVH KRXVHV RI VWLFNV DQG JUDVV
OLNHWKHQHWVRIDTXDWLFUDFHFOXQJWRWKHORZVKRUHV2WKHUVVHHPHGWRJURZRXW
RIWKHZDWHURWKHUVDJDLQIORDWHGLQWKHORQJDQFKRUHGURZVLQWKHYHU\PLGGOHRI
WKHVWUHDP´76/&RQUDGVHHPVWRVD\WKDWWKHDEVHQFHRIWKHZKLWHLQWUXGHUV
KDVJLYHQWKHQRQZKLWHSHRSOHWKHIUHHGRPWROLYHDVWKH\ZLVKDQGWKHQDWXUHWR
JURZDVGHVLJQHGE\*RG
&RQUDG¶VZKLWHUDFHVSRLOVWKHQDWXUHDQGWKHHQYLURQPHQWRIWKHQRQZKLWH
ODQGV LQ WKH ZDNH RI EULQJLQJ GHYHORSPHQW DQG DGYDQFHG LQIUDVWUXFWXUH WR WKH
FRORQL]HGWHUULWRULHV7RKLVZKLWHLQWUXGHUVWKHLQWHUPLQJOLQJRIQDWLYHVZLWKWKHLU
UHJLRQ VHHPV VWDUWOLQJ UHSHOOLQJ DQG \HW PHVPHUL]LQJ DQG FKDUPLQJ 7KLV
HQLJPDWLF DQG XQIDWKRPDEOH UHODWLRQVKLS EHWZHHQ WKH QRQZKLWHV DQG WKHLU
VXUURXQGLQJVLVEH\RQGWKHFRPSUHKHQVLRQRIWKHZKLWHV7KHVXSSRVHGFLYLOL]HG
SHRSOH ZKR JR WR FLYLOL]H WKH RVWHQVLEOH VDYDJHV DQG ZLOG SRSXODWLRQ DUH
WKHPVHOYHVEOLQGWRWKHH[LVWHQFHRIDFORVHDIILOLDWLRQEHWZHHQWKHXQVSRLOHGRU
XQWDLQWHGPDQDQGWKHXQGDPDJHGDQGXQWRXFKHGQDWXUH
,W KDV DOUHDG\ EHHQ VWDWHG DERYH WKDW &RQUDG DV DQ DQWLLPSHULDOLVW VKRZV
SRVLWLYHGLVSRVLWLRQWRZDUGVQRQ±ZKLWHVDQGJLYHVWKHPFRQVLGHUDEOHVSDFH+H
UHFRJQL]HV WKH ILGHOLW\ WKH UHVWUDLQW WKH GHYRWLRQ DQG WKH VWUHQJWK RI WKH QDWLYH
FRPPXQLW\ &RQUDG DOVR JLYHV WKH SRZHU RI VSHHFK WR VRPH RI KLV QRQZKLWH
FKDUDFWHUV7KHVHQRQZKLWHVDUWLFXODWHO\VKRZWKHLUDQJHUDJDLQVWWKHLUVXSHULRUV
1RUPDOO\ WKH QDWLYHV VSHDN LQ DQ XQLQWHOOLJLEOH FODWWHU RU DQ ³LQFRPSUHKHQVLEOH
IUHQ]\´+2'%XWZKHQWKHVXSSUHVVHGQDWLYHVDUHJLIWHGZLWKKXPDQVSHHFK
WKHP\ULDGXWWHUDQFHVRIWKHQDWLYHVEHFRPHYDOXDEOH7KH\EHFRPHDSDUWRIWKH
IDEULF RI WKH ZULWHU¶V ZRUOG %DEDODWFKL DQG $LVVD DUH H[DPSOHV WKDW VHUYH
&RQUDG¶V SXUSRVH RI YHUEDOLVLQJ WKH LVVXHV RI UDFLDO DQG VH[XDO GLVFUHSDQFLHV LQ
KLVQRYHOV$QRWKHUSXUSRVHRIWKHDXWKRULQJLYLQJYRLFHWRWKHLQGLJHQHFRXOGEH
WRUDLVHDIDYRXUDEOHUHVSRQVHIRUWKHQRQZKLWHVLQWKHZKLWHVRFLHW\%\JLYLQJ
WKHP D SRZHU WR H[SUHVV WKHLU LQQHU IHHOLQJV &RQUDG LV YLVXDOL]LQJ DQG
VWUHQJWKHQLQJWKHH[LVWHQFHRIWKHPDUJLQDOLVHG7KURXJKVXFKFKDUDFWHUV&RQUDG
WULHV WR UHFODLP WKH EURNHQ YRLFHV DQG H[SHULHQFHV RI WKH GRPLQDWHG &RQUDG¶V
DWWHPSWWRJLYHYRLFHWRWKHQDWLYHVLVDQHQGHDYRXU³WRVSHDNRXWRQWKHEHKDOIRI
WKRVH ZKR FRXOG QRW EHFDXVH WKH\ KDG EHHQ PXUGHUHG VLOHQFHG RU VLPSO\
LJQRUHG´ E\ LPSHULDOLVP :DOGHU 7KH SRZHU RI VSHHFK VKRZHUHG XSRQ WKH
QDWLYHV QRW RQO\ UHSOLFDWHV EXW DOVR HQVXUHV WKH FHUWDLQW\ RI WKHLU OLIH :LWK WKH
QDUUDWLRQ DQG H[SUHVVLRQ RI WKHLU DIIOLFWLRQV WKH UHFXUUHQWO\ RYHUORRNHG DQG
GLVUHJDUGHG DQG WKH FRQVHTXHQWO\ IRUJRWWHQ VXEDOWHUQ EHFRPHV DOLYH WR WKH
RSSUHVVLYHDXWKRULWLHV
&RQUDG EULQJV 0UV $OPD\HU -RDQQD DQG $LVVD RXW RI WKH VKDGRZV RI
SDWULDUFK\ +H JLYHV WKHP FRXUDJH WR H[SUHVV WKHLU RSLQLRQV DERXW WKH VXIIHULQJ
WKH\ KDYH EHHQ XQGHUJRLQJ LQ WKHLU UHODWLRQVKLS ZLWK WKHLU ZKLWH KXVEDQGV DQG
ORYHUV -RDQQD :LOOHPV¶ ZLIH LQ $Q 2XWFDVW RI WKH ,VODQGV UHYROWV DV VRRQ DV
:LOOHPVORVHVKLVSRVLWLRQLQWKHRIILFHRIKHUIRVWHUIDWKHU+XGLJ6KHUHWDOLDWHV
DJDLQVW:LOOHPV¶FUXHOW\DQGWHOOVKLPµ³'RQRWVSHDNWRPH,KDYHKHDUGZKDW,
KDYHZDLWHGIRUDOOWKUHH\HDUV<RXDUHOHVVWKDQGLUW\RXKDYHZLSHG\RXUIHHWRQ
PH,KDYHZDLWHGIRUWKLV,DPQRWDIUDLGQRZ,GRQRWZDQW\RXGRQRWFRPH
QHDU PH¶´ $,2 6LPLODUO\ 0UV $OPD\HU LQ $OPD\HU¶V )ROO\ WDNHV KHU
YHQJHDQFHDJDLQVWKHUKXVEDQGE\LQIOXHQFLQJWKHLUKDOIFDVWHGDXJKWHUZKRZDV
NHSW DZD\ IURP KHU IRU D ORQJ SHULRG E\ $OPD\HU $IWHU 1LQD KDV EHHQ EUXWDOO\
UHMHFWHGE\WKHZKLWHVRFLHW\WKHQDUUDWLRQRIYDULRXVOHJHQGVRIQRQZKLWHFXOWXUH
DQGWUDGLWLRQVE\0UV$OPD\HUDUHXVHGWRUHFODLP1LQDVRWKDWVKHIROORZVWKH
GUHDPV DQG VRFLHW\ RI KHU PRWKHU DQG ODWHU RI WKH WULEDO FKLHI 'DLQ $OVR WR
LQIXULDWH KHU KXVEDQG 0UV $OPD\HU XVHV WKH ZRUGV WKDW UHPLQG KLP RI WKH ODZ
DFFRUGLQJ WR ZKLFK KH KDV DFFHSWHG KHU DV KLV ZLIH 7KHVH DUH WZR H[DPSOHV RI
KRZ WKH GRXEO\ RSSUHVVHG VXEDOWHUQ ZRPHQ FDXJKW EHWZHHQ LPSHULDOLVW
GRPLQDWLRQDQGFRORQLDOLVWSDWULDUFKLHVKDYHILQDOO\UHWDOLDWHGDQGVSRNHQ
7KHVSHHFKHVGLDORJXHVDQGJHVWXUHVRIWKHZKLWHVDQGWKHQDWLYHVHOXFLGDWH
WKHFRQVFLRXVLQFRUSRUDWLRQRIUDFLDOWHQVLRQLQWKHZRUNVRI&RQUDG0RVWRIWKH
WLPHV WKHUH H[LVWV D UXWKOHVV DQG IULFWLRQDO DWWLWXGH EHWZHHQ WKH WZR UDFHV 7KH
ZKLWHV WU\ DQG SURYH WKHLU VXSHULRULW\ RYHU WKH QDWLYHV DQG WKH QRQZKLWHV WRR
FRPPXQLFDWH WKHLU IHHOLQJV RI DQQR\DQFH DQG UHVHQWPHQW DJDLQVW WKHP ,Q 7KH
5HVFXH 6KDZ RUGHUV WKH 0DOD\ FUHZ LQ D YHU\ FXUW PDQQHU DQG VSHDNV LQ DQ
FRQGHVFHQGLQJZD\+HWDONVWRWKH0DOD\DWWKHZKHHODVLIWKHQRQZKLWHLVDQ
LQDQLPDWH REMHFW :KHQ 6KDZ RUGHUV KLP LQ DQ DXWKRULWDWLYH VW\OH WKH 0DOD\
REH\V WKH ZKLWH PDVWHU EXW ³ZLWK GLVGDLQIXO REHGLHQFH´ 75 7KXV WKH
KRVWLOLW\EHWZHHQWKHZKLWHPDVWHUDQGWKHIRUFHGQDWLYHZRUNHULVYLVLEOHHYHQLQ
WKHJHVWXUHVRIWKHQRQZKLWHDWWKHZKHHO7KH0DOD\¶VFRQWHPSWXRXVREHGLHQFH
UHIOHFWV KLV DWWLWXGH WR WKH ZRUN WKUXVW XSRQ KLP E\ WKH ZKLWH PDVWHU 7KH QRQ
ZKLWH PDQ DWWHQGV WR WKH FRPPDQG RI WKH ZKLWH ORUG XQTXHVWLRQLQJO\ EXW KLV
FRQIRUPLW\ WR WKH ZRUN LV DFFRPSDQLHG ZLWK D IHHOLQJ RI VFRUQ GLVUHJDUG DQG
GLVGDLQWRZDUGVKLVVXSHULRUV
7KH ZKLWHV WU\ DQG H[HUW WKHLU IRUFH EXW WKH QDWLYHV KDYH WKHLU RZQ ZD\ RI
UHWDOLDWLRQ7KHQDWLYHVVHHZKLWHPHQDVWULFN\GHFHLWIXOWUHDFKHURXVDQGYLFLRXV
RSSRUWXQLVWV ZKR FRPH WR WKH QRQZKLWH ODQGV µ³ZLWK SUD\HUV RQ WKHLU OLSV DQG
ORDGHGJXQVLQWKHLUKDQGV¶´$)/DNDPEDLQ$OPD\HU¶V)ROO\VD\VWKDWLW
ZDV HDV\ WR NLOO 'DLQ WKH SRZHUIXO WULEDO FKLHI WKDQ WR ILJKW DJDLQVW WKH 'XWFK
%DEDODWFKLWKLQNVWKDWZKHQWKHQDWLYHVILJKWDPRQJVWWKHPVHOYHVWKH\DUHKDSS\
DQG LI WKH\ KDYH WR ILJKW DJDLQVW WKH (QJOLVK WKH\ µ³FDQ RQO\ GLH´¶ $) 7KHUH LV QR DGPLUDWLRQ IRU WKH ZKLWHV LQ WKH VSHHFKHV RI WKH EODFNV %DEDODWFKL
EHOLHYHV WKDW WKH (XURSHDQ¶V DGYHQW LQ WKH QRQZKLWH ODQGV KDV UHVXOWHG LQWR
³VXGGHQUXLQDQGGHVWUXFWLRQRIDOOWKDWKHGHHPHGLQGLVSHQVDEOHWRDKDSS\DQGD
JORULRXVH[LVWHQFH´$2,7KHVSHHFKHVRIWKHQDWLYHVVKRZ&RQUDG¶VODFNRI
V\PSDWK\IRUWKHFRPSDQLRQVRIKLVDGRSWHGQDWLRQ+HUHSURGXFHVWKHZRUGVRI
UHVHQWPHQWRIWKHQDWLYHVDJDLQVWKLVFRXQWU\PHQ ,QVSLWHRIEHLQJDQLQKDELWDQW
RI WKH ZKLWH FRPPXQLW\ KH GRHV QRW KHVLWDWH WR SRLQW RXW WKH GHIHFWV RI WKH
VXSHULRUUDFH
%HODUDE DSSURYHV RI WKH IULHQGVKLS ZLWK ZKLWHV OLNH /LQJDUG +H LV
³VHGXFHG E\ WKH VWUHQJWK DQG DXGDFLW\ RI WKH ZKLWH PDQ´ 75 %HODUDE
EHOLHYHV LQ WKH SRWHQF\ RI KLV ZKLWH IULHQG EXW KH LV QRW UHDG\ WR ILJKW IRU RU
DJDLQVWWKHZKLWHV(YHQDWWKHUHTXHVWRI/LQJDUG%HODUDEGRHVQRWZDQWWRJRIRU
DEDWWOHDQGVHHKLVRZQSHRSOHG\LQJIRUWKHVDNHRIWKHXQNQRZQZKLWHVVXFKDV
0UVDQG0U7UDYHUV+HWULHVWRSHUVXDGH/LQJDUGWRKDQGRYHUWKRVHSHRSOHWR
'DPDQ EHFDXVH ³:K\ VKRXOG KH %HODUDE JR WR ZDU DJDLQVW KDOI WKH VHWWOHPHQW
RQWKHLUDFFRXQW",WZDVQRWQHFHVVDU\LWZDVQRWUHDVRQDEOH,WZRXOGEHHYHQLQD
PDQQHUDVLQWREHJLQVWULIHLQD FRPPXQLW\RI 7UXH %HOLHYHUV´756XFK
VSHHFKHV YRLFH WKH GRXEW DQG VXVSLFLRQ LQ WKH KHDUWV RI WKH QRQZKLWH LVODQG
GZHOOHUVZKREHOLHYHWKDWWKHIULHQGVKLSZLWKWKHZKLWHVVKRXOGQRWSURVSHUDWWKH
FRVWRIWKHOLYHVRIWKHLURZQSHRSOH:KHQ%HODUDEKHDUVWKHJUHDWZKLWHPDQVD\
³<RX VKDOO QHYHU VHH PH DJDLQ´ KH IHHOV LPPHQVHO\ UHOLHYHG 75 %HODUDE
WKLQNVWKDWLQWKHDEVHQFHRIZKLWHPHQKLVRZQSHRSOHRIWKHGDUNFUHHNDQGWKH
LPSHQHWUDEOHIRUHVWZRXOGOLYHLQDZRUOGVDYHGIURPGHVWUXFWLRQE\WKH ZHVWHUQ
LQYDVLRQ ,W VKRZV DQ XWWHU GLVEHOLHYH RI WKH QDWLYHV LQ WKH HQYR\V RI
HQOLJKWHQPHQW
7KHWULEDOFKLHI7HQJJDKDVUXOHGRYHUWKHLVODQGIRUVL[\HDUVEXWDVVRRQ
DV WKH ZKLWHV LQWUXGH LQWR WKH LVODQG KH LV GULYHQ DZD\ IURP KLV SRVLWLRQ RI
DXWKRULW\E\WKHP+HGRHVQRWZDQWWRH[WHQGKHOSWRDQ\ZKLWHPDQ+HDUJXHV
ZLWK -RUJHQVRQ DQG KLV FRPPHQWV EULQJ RXW KLV MXVWLILDEOH DQG IXPLQJ DWWLWXGH
WRZDUGVWKHZKLWHSHRSOH+HVD\Vµ³:HPXVWQRWWRXFKWKHPEHFDXVHWKHLUVNLQ
LVOLNH\RXUVDQGWRNLOOWKHPZRXOGEHZURQJEXWDWWKHELGGLQJRI\RXZKLWHVZH
PD\JRDQGILJKWZLWKSHRSOHRIRXURZQVNLQDQGRZQIDLWK±DQGWKDWLVJRRG´¶
75 7HQJJD TXHVWLRQV WKH YDOXH RI WKH QDWLYH¶V OLIH 'DPDQ WRR OLNH
7HQJJD GLVOLNHV WKH SROLFLHV RI WKH ZKLWHV +LV NLGQDSSLQJ RI 0UV DQG 0U
7UDYHUVLVDFRQVHTXHQFHRIKLVLQVHFXULW\+HLVDIUDLGWKDWKHKDVEHHQ PDGH D
YLFWLPRIDSORW)RUKLP³LWZDVSHUKDSVDJUHDWIROO\WRWUXVWDQ\ZKLWHPDQQR
PDWWHU KRZ PXFK KH VHHPHG HVWUDQJHG IURP KLV RZQ SHRSOH´ 75 6XFK
FKDUDFWHUV DUH H[DPSOHV RI KRZ &RQUDG DUWLFXODWHV WKH UHDOLW\ RI WKH ZKLWH
DGYHQWXUHUV WKURXJK QRQZKLWH YRLFHV 7KH LQWHUIDFH GHPRQVWUDWHV WKDW WKH
SUHVHQFH RI WKH ZKLWH SHRSOH LQ WKH OLYHV RI WKH QRQZKLWHV GLVWXUEV WKH EHOLHIV
YDOXHVDQGFXOWXUHRIWKHGRPLQDWHG
$Q 2XWFDVW RI WKH ,VODQGV LV DQ H[DPSOH ZKHUH PDQ\ QDWLYHV OLNH
%DEDODWFKL2PDU/DNDPED6DKDPLQDQG$LVVDJLYHYHQWWRWKHLUDQJHUDJDLQVW
WKH ZKLWHV 6RPHWLPHV WKHVH QDWLYHV DUH VHHQ WR TXHVWLRQ DQG REMHFW WR WKH
LQWHUIHUHQFHRIWKHUDFLDOO\VXSHULRUSHRSOHLQWKHLUODQGVDQGOLYHV$LVVDDVWURQJ
PLQGHGQRQZKLWHZRPDQKDVEHHQJLYHQDIHZSDVVDJHVLQWKHQRYHOWRSRXURXW
KHUKHDUWIHOWIHHOLQJVDJDLQVWWKHVXSHULRUUDFH$LVVDKDVEHHQ JUDQWHGWKHPRVW
SRWHQW YRLFH E\ WKH LPPLJUDWHG DXWKRU ,Q WKH ILJKW EHWZHHQ KHU IDWKHU DQG
/LQJDUG$LVVD¶VIOLJKWZLWKKHUZRXQGHGIDWKHURQKHUVKRXOGHUVDQGWKHGHDWKRI
KHU PHQ DURXQG KHU LV WKH FDXVH RI $LVVD¶V DQWLSDWK\ DJDLQVW WKH ZKLWHV $LVVD
ORVHV KHU IDWKHU DQG IDPLO\ EHFDXVH RI WKH ZKLWH PHQ +HU ZRUGV H[SUHVV KHU
DQJXLVKDQGUDFLDOKDWUHG
$LVVD H[SUHVVHV KHU YLHZV DJDLQVW KHU ZKLWH ORYHU WRR 6KH LV ILUVW FRXUWHG
DQGWKHQVFRUQHGE\:LOOHPV+LVDWWLWXGHIRUFHVKHUWRUHSHDWHGO\UHIHUWR(XURSH
DVµ³DODQGRIOLHV´¶$2,6KHORRNVDW:LOOHPVDVDPDQ³RIWKHYLFWRULRXV
UDFH´$2,6KHIUHTXHQWO\VD\VWKDW:LOOHPVEHORQJVWRµ³DODQGRIHYLO
IURPZKHUHQRWKLQJEXWPLVIRUWXQHFRPHVWRXV±ZKRDUHQRWZKLWH´¶$2,
$LVVD¶V YLHZV SURYH WKDW LQ FRQWUDVW WR WKH GLVFRXUVH RI SURJUHVV WKH DLP RI WKH
ZKLWH WUDGHUV LV QRW WR VSUHDG KXPLOLW\ DQG KRQHVW\ NQRZOHGJH DQG FLYLOL]HG
PDQQHUV EXW LQGXOJH RQO\ LQ H[SORLWDWLRQ RI WKH QDWLYHV $LVVD¶V IDWKHU 2PDU
KDUERXUVDVWURQJDEKRUUHQFHDJDLQVWWKHZKLWHVDQGHVSHFLDOO\ DJDLQVW:LOOHPV
EHFDXVH :LOOHPV KDV WDNHQ KLV GDXJKWHU DZD\ IURP KLP ,Q D GHSUHVVHG PRRG
2PDUTXHVWLRQVWKHSUHVHQFHRI:LOOHPVLQKLVOLIHDQGVD\V³:K\GLGKHFRPHWR
GHILOH WKH DLU , EUHDWKH ± WR PRFN DW P\ IDWH ± WR SRLVRQ KHU PLQG DQG VWHDO KHU
ERG\"´$2,+HFDOOVWKHZKLWHPHQ³6RQVRIZLWFKHV´DQGVD\VWKDW³WKHLU
IDWKHULV6DWDQWKHVWRQHG´$2,+HEHOLHYHVWKDWWKHQRQZKLWHVFDQQRWILJKW
DJDLQVW WKH ZKLWHV EHFDXVH RI WKH VXSHULRULW\ RI WKHLU ZHDSRQV ³7KH ILUH VKLSV
ZLWK JXQV WKDW GHDO ILHU\ GHDWK IURP DIDU´ DQG GURS ³ZKLVWOLQJ ILUHEDOOV LQWR WKH
FUHHN´KDYHUHGXFHGWKHULFKDQGVWURQJVHDSLUDWH2PDUWRDQ³ROGIHHEOHEOLQG
DQGZLWKRXWFRPSDQLRQV´ORQHUZKRQRZKDVQRWKLQJEXWKLVGDXJKWHU$,2
7KHQDWLYHVKDYHWRDELGHE\WKHUXOHVDQGWKHZRUGVRIWKHDJHQWVRIWKHILQHU
UDFH ,Q WKHLU KHDUWV WKH QRQZKLWHV KDYH WKRXJKWV RI ELWWHUQHVV UHSXOVLRQ
DEKRUUHQFHDQGGLVJXVWDJDLQVWWKHZKLWHV
6DKDPLQ DQG %DEDODWFKL WRR FRQYH\ WKHLU RSLQLRQ DJDLQVW WKH ZKLWHV
6DKDPLQ VD\V ³:H DUH ZHDU\ RI SD\LQJ RXU GHEWV WR WKDW ZKLWH PDQ >$OPD\HU@
KHUHZKRLVWKHVRQRI5DMDK/DXW7KDWZKLWHPDQ±PD\WKHJUDYHRIKLVPRWKHU
EHGHILOHG+HVHHNVWRFDXVHRXUYHU\GHDWK+HWUDGHVZLWKWKH'\DNVRIWKH
IRUHVWZKRDUHQREHWWHUWKDQPRQNH\V+HEX\VIURPWKHPJXWWDKDQGUDWWDQV±
ZKLOHZHVWDUYH>+HKDV@QRXQGHUVWDQGLQJRIDQ\FRXUWHV\±KHVSRNHWRPH
DVLI,ZDVDVODYH´$2,6DKDPLQ¶VZRUGVH[SODLQWKDWWKHSXUSRVHRI
WKH ZKLWHV LV RQO\ WR DFKLHYH D WUXVWZRUWK\ DQG GHSHQGDEOH SRVLWLRQ LQ WKH QRQ
ZKLWH ODQGV VR WKDW WKH\ FRXOG H[SORLW WKH QRQZKLWHV 7KH WUDGHUV DQG FRORQLDO
DJHQWVSUHWHQGWKDWWKHLULQWHQWLRQVDUHWRFLYLOL]HWKHFRORXUHGUDFHVEXWQRQHRI
WKH ZKLWHV GRHV WKDW 7KH KHDUWV RI WKH QRQZKLWHV DUH IXOO RI VRUH IHHOLQJV IRU
WKHP7KH ZKLWHVUXLQWKHWUDGHWKHPHDQVRIWKHLUVXUYLYDORIWKHQRQ ZKLWHV
%DEDODWFKLVHHPVWRKDYHEHHQJLYHQPD[LPXPZRUGVDQGPRVWYROXPLQRXVDQG
FXUW VSHHFKHV DJDLQVW /LQJDUG DQG WKH ZKLWH PHQ LQ JHQHUDO %DEDODWFKL ZKLOH
WDONLQJWR/LQJDUGVD\V
³7KLVLVZKLWHPDQ¶VWDON7KDWLVKRZ\RXWDONZKLOH\RXORDG\RXU
JXQVDQGVKDUSHQ\RXUVZRUGVZKHQ\RXDUHUHDG\WKHQWRWKRVHZKR
DUH ZHDN \RX VD\ µ2EH\ PH DQG EH KDSS\ RU GLH¶ <RX DUH VWUDQJH
\RXZKLWHPHQ<RXWKLQNLWLVRQO\\RXUZLVGRPDQGYLUWXHDQG\RXU
KDSSLQHVVWKDWDUHWUXH<RXDUHVWURQJHUWKDQZLOGEHDVWVEXWQRWVR
ZLVH $ EODFN WLJHU NQRZV ZKHQ KH LV QRW KXQJU\ ± \RX GR QRW +H
NQRZVWKHGLIIHUHQFHEHWZHHQKLPVHOI DQGWKRVH ZKRFDQVSHDN \RX
GRQRWXQGHUVWDQGWKHGLIIHUHQFHEHWZHHQ\RXUVHOYHVDQGXV±ZKRDUH
PHQ<RXDUHZLVHDQGJUHDW±DQG\RXVKDOODOZD\VEHIRROV<RX
ZKLWHV DUH VR JUHDW WKDW \RX GLVGDLQ WR UHPHPEHU \RXU HQHPLHV <RX KDYH VR PXFK PHUF\ IRU XV WKDW WKHUH LV QR URRP IRU DQ\
UHPHPEUDQFH <RX ZKLWHV KDYH WDNHQ DOO WKH ODQG WKH VHD DQG
SRZHUWRVWULNH$QGWKHUHLVQRWKLQJOHIWIRUXVLQWKHLVODQGVEXW\RXU
ZKLWH PHQ¶V MXVWLFH \RXU JUHDW MXVWLFH WKDW NQRZV QRW DQJHU´ $2,
8QOLNHWKHVXEDOWHUQRI6SLYDNWKHVXEDOWHUQLQWKHZRUNVRI&RQUDGH[SUHVVWKHLU
XQGHUVWDQGLQJ RI WKH EUXWDO SROLFLHV RI WKH ZKLWHV %DEDODWFKL KDV EHHQ JLYHQ DQ
RSSRUWXQLW\ WR ³RIIHU DQ HORTXHQW DQG GHYDVWDWLQJ DVVHVVPHQW RI WKH ZKLWH PHQ
ZKR UXOH WKHP´ 0F&OXUH +LV GLDORJXHV ZLWK WKH IDWKHUO\ ILJXUH /LQJDUG
DUHVDUFDVWLFUHPDUNVRQWKH(XURSHDQFRQYLFWLRQVDVVXPSWLRQVDQGWKHSV\FKHRI
WKH ZKLWH UDFH )URP WKH ZRUGV RI WKH QRQZKLWHV WKH UHDGHU FDQ DVFHUWDLQ WKH
VSLULWXDO FROODSVH PDOLFH DQG YLFLRXVQHVV RI WKH ZKLWH LQWUXGHUV %DEDODWFKL
GHQRXQFHV WKH VHOIDVVXPHG VSHFLDO ULJKWV DQG SRZHUV RI WKH ZKLWH FRORQL]HUV
ZKHQZHDUHWROGWKDWKH
³6SRNHLQDUHVWUDLQHGYRLFHEXWZLWKDJURZLQJHQHUJ\RILQGLJQDWLRQ
µ:KDW ZDV KH >/LQJDUG@ WKDW PDQ RI ILHUFH DVSHFW WR NHHS DOO WKH
ZRUOG IRU WKHP" :DV KH JRYHUQPHQW" :KR PDGH KLP WKH UXOHU" +H
WRRN SRVVHVVLRQ RI 3DWDOROR¶V PLQG DQG PDGH KLV KHDUW KDUG KH SXW
VHYHUZRUGVLQWRKLVPRXWKDQGFDXVHGKLVKDQGWRVWULNHULJKWDQGOHIW
7KDW XQEHOLHYHU NHSW WKH IDLWKIXO SDQWLQJ XQGHU WKH ZHLJKW RI KLV
VHQVHOHVVRSSUHVVLRQ7KH\KDGWRWUDGHZLWKKLP±DFFHSWVXFKJRRGV
DV KH ZRXOG JLYH ± VXFK FUHGLW DV KH ZRXOG DFFRUG $QG KH H[DFWHG
SD\PHQWHYHU\\HDU¶´$,2
%DEDODWFKL¶V VSHHFK SRLQWV WRZDUGV WKH GLIIHUHQFH EHWZHHQ WKH ZKLWH WUDGHU
/LQJDUGDQGWKHQRQZKLWHWUDGHUVOLNH$EGXOODDQG2PDU+LVFRQYLQFLQJZHOO
DUJXHG DQG HIIHFWXDO VSHHFKHV DUH GLUHFWHG DJDLQVW WKH PDVVLYH GLVUXSWLRQ
GLVORFDWLRQGLVSODFHPHQWFDXVHGE\WKHFRORQL]HU
%DEDODWFKLVFKHPHVDJDLQVWWKHZKLWHVRQWKHEDVLVRIKLVNQRZOHGJHRIWKH
VXSHULRU UDFH +H WHOOV /DNDPED WKDW KH NQRZV ZKLWH PHQ DQG WKDW WKH\ DUH
³VODYHV RI WKHLU GHVLUHV DOZD\V UHDG\ WR JLYH XS WKHLU VWUHQJWK DQG WKHLU UHDVRQ
LQWRWKHKDQGVRIVRPHZRPDQ/HWRQHZKLWHPDQGHVWUR\DQRWKHU7KHZLOO
RIWKH0RVW+LJKLVWKDWWKH\VKRXOGEHIRROV7KH\NQRZKRZWRNHHSIDLWKZLWK
WKHLU HQHPLHV EXW WRZDUGV HDFK RWKHU WKH\ NQRZ RQO\ GHFHSWLRQ´ $2, %DEDODWFKL¶V ZRUGV LOOXVWUDWH WKH GDUN KHDUW EHKLQG WKH ZKLWH PDVNV RI WKH IDLU
VNLQQHGSHRSOH+LVVSHHFKHVDUHDFRPPHQWXSRQWKHUDSDFLRXVQHVVRIWKHZKLWH
UDFH %DEDODWFKL¶V UHDGLQJ RI WKH UDFLDOO\ VXSHULRU SHRSOH VKRZV WKDW WKH ZKLWH
SHRSOH IRU WKHLU RZQ EHQHILW VFKHPH DQG SORW DJDLQVW HDFK RWKHU WRR 7KHVH
UXWKOHVV GLFWDWRUV REVWLQDWHO\ SXUVXH KRUURU FORDNHG LQ WKH VKDSH RI SRZHU
DXWKRULW\DQGLQIOXHQFHRYHUWKHQDWLYHV%XWWKHLUZHDNQHVVEHFRPHVWKHVWUHQJWK
RIWKH2WKHUVDQGSHRSOHOLNH%DEDODWFKLWKHQH[SORLWWKHVLWXDWLRQ&RQUDGVHHPV
WR MXVWLI\ WKH LQWULJXHV E\ WKH FUDIW\ RQH VLQFH KH JLYHV YRLFH DQG FRXUDJH WR KLV
QRQZKLWHFKDUDFWHUWRQDUUDWHWKHGRPLQDWLRQRI /LQJDUG %DEDODWFKLWDONVDERXW
2PDU¶V GHDWK DQG KROGV /LQJDUG UHVSRQVLEOH IRU LW 2PDU GLHG ³SRRU EOLQG
XQKDSS\ ± ZLWK QR VRQ WR GLJ KLV JUDYH DQG VSHDN RI KLV ZLVGRP DQG FRXUDJH´
$,2+HDFFXVHV/LQJDUGRIQRWRQO\UXLQLQJWKHOLIHRIKLVFKLHIEXWDOVRRI
IRUJHWWLQJ KLP :LOOHPV¶ EXUQLQJ WKH KXW RI KLV FKLHI DORQJ ZLWK KLV GHDG ERG\
YLQGLFDWHVHDFK DQGHYHU\ ZRUGWKDW %DEDODWFKLVSHDNVDJDLQVW /LQJDUGDQGDOVR
HYHU\DFFXVDWLRQWKDWKHOHYHOVDJDLQVWWKHZKLWHFRPPXQLW\
7KHSRZHURIVSHHFKWKDW&RQUDGVKRZHUVXSRQWKHQDWLYHVFRQILUPVWKDWKH
JLYHVWKHPWKHDELOLW\WRWKLQNWKHDELOLW\WRPDNHMXGJHPHQWVDQGWKHDELOLW\WR
H[SUHVVWKHVHQVLELOLWLHVRIWKHZKLWHV&RQUDG¶VZRUNVLQFOXGHSRUWUD\DORIUDFLDO
HGJLQHVV EHWZHHQ WKH ZKLWHV DQG WKH QRQZKLWHV +H JLYHV WKH FRQTXHUHG UDFH D
PHDQV RI H[SUHVVLRQ +H SUHVHQWV D WUXH SLFWXUH RI WKH UHODWLRQVKLS EHWZHHQ WKH
ZKLWHVDQGWKHQRQZKLWHVE\DQDO\]LQJKRZWKHZKLWHVYLHZWKHQRQZKLWHVDQG
YLFHYHUVD ,Q WKLV PDQQHU KH DUJXHV DJDLQVW WKH KHJHPRQ\ RI DEVROXWH
DXWKRULWDWLYH FRQWURO 7KHUH LV DOZD\V D QHHG WR WDNH WKH 2WKHUV DQG WKHLU
2WKHUQHVV LQWR DFFRXQW &RQUDG KDV EHHQ DEOH WR IXOILO WKLV WDVN VXFFHVVIXOO\ E\
JLYLQJ DQ RSSRUWXQLW\ WR PDQ\ QDWLYHV WR H[SUHVV WKHPVHOYHV +LV QRQZKLWHV
H[SUHVV WKH UXWKOHVV PDQQHU LQ ZKLFK WKH ZKLWH DJHQWV WUDGHUV DQG DGYHQWXUHUV
VSUHDG WKHLU KHJHPRQ\ DQG GRPLQDQFH RYHU WKH UDFH RI WKH 2WKHUV 6SHHFK
DFFRUGLQJWR:ROIUH\V³QDUUDWHVWKHHYHQWVRIWKHVXEMHFWV¶FRQVWUXFWLRQ´DQGE\
JLYLQJVSHHFKWRWKHQRQZKLWHV&RQUDGJLYHVWLPHDQGVSDFHWRWKHQDWLYHVLQKLV
WH[WV:ROIUH\V&RQUDG¶VWH[WVUHFRYHUWKHEURNHQYRLFHVRIWKHQDWLYHV7KH
H[SUHVVLRQ RI WKHLU VXIIHULQJ VKRZV WKDW WKH QDWLYHV RI &RQUDG¶V QDUUDWLYHV FDQ
VSHDNDQGWKH\NQRZWKHLUFRQGLWLRQ&RQUDG¶VFRORQLDOZRUOGGRHVQRWUHPDLQD
ZRUOGRISDVVLYHVSHFWDWRUVLWEHFRPHVDXGLEOHDQGYLVLEOHWKURXJKWKHZRUGVRI
WKH QRQZKLWHV 7KH SRZHU RI VSHHFK VKRZHUHG XSRQ WKH QRQZKLWHV GHSLFWV WKH
OLPLWDWLRQVRIWKHDJHQWVRIWKHFLYLOL]HGZRUOG&RQUDG¶VDFWRIJLYLQJYRLFHWRWKH
QRQZKLWHV SURYLGHV IUHHGRP RI LPDJLQDWLRQ DQG DQDO\VLV WR WKH RVWHQVLEOH
LQIHULRU DQG EUDLQOHVV QDWLYHV DQG DOVR UHYHUVHV WKH VWHUHRW\SHV DQG ELQDU\
RSSRVLWLRQV
&RQVHTXHQWO\ &KDSWHU 2QH RI WKH GLVVHUWDWLRQ UHSUHVHQWV &RQUDG¶V
LPSDUWLDO GHSLFWLRQ RI WKH LQWHUIDFH EHWZHHQ WKH SURIHVVHG VXSHULRU DQG WKH
SUHVXPHGVXEMXJDWHGUDFHVRIWKHUHVSHFWLYHFLYLOL]HGDQGWKHXQFLYLOL]HGZRUOGV
:LWK WUXWKIXOQHVV DQG SUHFLVLRQ &RQUDG GHVFULEHV WKH LQMXVWLFH GLVFULPLQDWLRQ
DQG WKH XQFRQYHQWLRQDO EHKDYLRXU RI WKH ZKLWHV WKDW WKH QDWLYHV KDYH WR IDFH
:KLOH GHPRQVWUDWLQJ WKH SRLQW RI YLHZ RI WKH 2WKHUV WKH FKDSWHU DOVR
GHPRQVWUDWHV&RQUDG¶VLQWHUSUHWDWLRQRIWKHIDLOXUHRIWKHZKLWHWUDGHUVLQWKHOLJKW
RIWKHGLVFRXUVHRISURJUHVVDQGOHJHQGVDERXWWKHEHQHILFLDOUROHWKDWLPSHULDOLVP
LV VXSSRVHG WR SOD\ &RQUDG WDONV DERXW WKH H[SORLWDWLYH DQG PDQLSXODWLYH
WHQGHQFLHV RI LPSHULDO VHWXS +H GHPRQVWUDWHV LPSHULDOLVP DV DQ XQGLJQLILHG
FRUUXSWLQJ DQG GHKXPDQL]LQJ YHQWXUH ,PSHULDOLVP DFNQRZOHGJHV WKH UDFLDO DQG
FXOWXUDOGLIIHUHQFHVRIWKRVHLWH[SORLWVEXWGRHVQRWJLYHDQ\YDOXHWRWKHVXSHULRU
WUDLWV LQ WKH RWKHU FXOWXUH %\ HPSKDVL]LQJ WKH KXPDQLW\ RI WKH LQGLJHQRXV UDFHV
DQG E\ GHQRXQFLQJ WKH ZKLWH (XURSHDQV¶ EHKDYLRXU LQ WKH FRORQLHV &RQUDG OD\V
DQ LQHYLWDEOH DFFXVDWLRQ DJDLQVW LPSHULDOLVP LWV DJHQWV DQG LWV SUDFWLFHV %\
KHLJKWHQLQJWKHLQFRQJUXLW\EHWZHHQWKHP\WKVSURSRXQGHGE\WKHZKLWHVDQGWKH
DFWXDOLW\ RI WKH GRPLQDWHG &RQUDG EXLOGV DQHZ WKH LGHD RI WKH PDMHVWLF VHWXS
)XUWKHUPRUH WKH UHDGHUV FRPH DFURVV D EULHI GLVFXVVLRQ RI VWHUHRW\SHV DQG
LQYHVWLJDWLRQ RI &RQUDG¶V V\PSDWK\ WRZDUGV WKH QDWLYHV LQ KLV UHMHFWLQJ WKHVH
WURSHV &RQUDG¶V FRQGHPQDWLRQ DQG GLVDSSURYDO RI WKH FRORQLDO PLVVLRQ DQG WKH
LPSDUWLDOGHSLFWLRQRIWKHFRORQL]HGLQGLJHQHLQWKHFRORQLHVUDQNVKLPDPRQJWKH
ILUVW SRVWFRORQLDO ZULWHUV DW ZRUN LQ WKH (QJOLVK ODQJXDJH 7KHUHIRUH LW PD\ EH
GHGXFHG WKDW ³E\ UHYHDOLQJ WKH GLVMXQFWLRQV EHWZHHQ KLJKVRXQGLQJ UKHWRULF DQG
VRUGLGDPELWLRQVDQGLQGLFWLQJWKHSXUSRVHVDQGJRDOVRIDFLYLOL]DWLRQGHGLFDWHG
WR JOREDO H[SDQVLRQLVP DQG KHJHPRQ\ &RQUDG¶V ZULWLQJV HQJHQGHU D FULWLTXH
PRUH GHVWUXFWLYH RI LPSHULDOLVP¶V LGHRORJLFDO SUHPLVHV WKDQ GR WKH SROHPLFV RI
KLVFRQWHPSRUDU\RSSRQHQWVRIHPSLUH3DUU\
#!2
$UQROG 'DYLG DQG 5DPDFKDQGUD *XKD HGV 1DWXUH &XOWXUH ,PSHULDOLVP
(VVD\V RQ WKH (QYLURQPHQWDO +LVWRU\ RI 6RXWK $VLD 'HOKL 2[IRUG
8QLYHUVLW\3UHVV
$VKFURIW%LOO7KH(PSLUH:ULWHV%DFN/RQGRQ5RXWOHGJH
%DUU\3HWHU%HJLQQLQJ7KHRU\$Q,QWURGXFWLRQWR/LWHUDU\DQG&XOWXUDO7KHRU\
0DQFKHVWHU0DQFKHVWHU8QLYHUVLW\3UHVV
%KDEKD +RPL ³7KH 2WKHU 4XHVWLRQ´ &RQWHPSRUDU\ 3RVWFRORQLDO 7KHRU\ $
5HDGHU (G 3DGPLQL 0RQJLD 1HZ 'HOKL 2[IRUG 8QLYHUVLW\ 3UHVV 7KH/RFDWLRQRI&XOWXUH/RQGRQ5RXWOHGJH
%UDQWOLQJHU3DWULFN³)URPµ.XUW]¶V³'DUNQHVV´$QG+HDUWRI'DUNQHVV¶´3RVW
&RORQLDO 7KHRU\ DQG (QJOLVK /LWHUDWXUH $ 5HDGHU (G 3HWHU &KLOGV
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
&KLOGV3HWHUHG³,QWURGXFWLRQ&RORQLDO+LVWRU\1DWLRQDO,GHQWLW\DQGµ(QJOLVK¶
/LWHUDWXUH´3RVW&RORQLDO7KHRU\DQG(QJOLVK/LWHUDWXUH$5HDGHU
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
&KRZ 5H\ ³:KHUH +DYH $OO WKH 1DWLYHV *RQH"´ &RQWHPSRUDU\ 3RVWFRORQLDO
7KHRU\ $ 5HDGHU (G 3DGPLQL 0RQJLD 1HZ 'HOKL 2[IRUG 8QLYHUVLW\
3UHVV
&RQUDG -RVHSK /HWWHUV WR :LOOLDP %ODFNZRRG DQG 'DYLG 6 0HOGUXP (G
:LOOLDP%ODFNZRRG'XUKDP'XNH8QLYHUVLW\3UHVV
$OPD\HU¶V)ROO\*UHDW%ULWDLQ:RUGVZRUWK(GLWLRQV/WG
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN$)DQGSDJHQXPEHUV@
$Q2XWFDVWRIWKH,VODQGV(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN$2,DQGSDJHQXPEHUV@
7KH1LJJHURIWKHµ1DUFLVVXV¶(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN711DQGSDJHQXPEHUV@
/RUG-LP(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN/-DQGSDJHQXPEHUV@
+HDUW RI 'DUNQHVV 1HZ 'HOKL 8 % 6 3XEOLVKHUV¶ 'LVWULEXWRUV /WG
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN+2'DQGSDJHQXPEHUV@
&KDQFH(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN&DQGSDJHQXPEHUV@
9LFWRU\3HQJXLQ(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN9DQGSDJHQXPEHUV@
7KH6KDGRZ/LQH(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN76/DQGSDJHQXPEHUV@
7KH5HVFXH(QJODQG3HQJXLQ%RRNV
>6XEVHTXHQW UHIHUHQFHV WR WKH ERRN ZLOO EH FLWHG DV DEEUHYLDWHG IRUP RI
ERRN75DQGSDJHQXPEHUV@
&RRSSDQ 9LODVKLQL ³:KLWKHU 3RVWFRORQLDO 6WXGLHV" 7RZDUGV 7KH
7UDQVQDWLRQDO 6WXG\ RI 5DFH DQG 1DWLRQ´ 3RVWFRORQLDO 7KHRU\ DQG
&ULWLFLVP(G3DUU\%HQLWD6XIIRON'6%UHZHU
&XUOH5LFKDUG-RVHSK&RQUDGDQG+LV&KDUDFWHUV$6WXG\RI6L[1RYHOV
1HZ<RUN5XVVHOO5XVVHOO
)DQRQ )UDQW] 7KH :UHWFKHG RI WKH (DUWK 1HZ <RUN *URYH 3UHVV ,QF
+DZWKRUQ-HUHP\$*ORVVDU\RI&RQWHPSRUDU\/LWHUDU\7KHRU\/RQGRQ
+RGGHU+HDGOLQH*URXS
+DZNLQ+XQW³&RQUDG¶V&ULWLTXHRI ,PSHULDOLVPLQ+HDUWRI'DUNQHVV´30/$
0DUFK
+HDGULFN'DQLHO57KH7RROVRI(PSLUH7HFKQRORJ\DQG(XURSHDQ,PSHULDOLVP
LQWKH1LQHWHHQWK&HQWXU\1HZ<RUN2[IRUG8QLYHUVLW\3UHVV
-DQ0RKDPHG $EGXO 5 0DQLFKHDQ $HVWKHWLFV WKH 3ROLWLFV RI /LWHUDWXUH LQ
&RORQLDO$IULFD$PKHUVW8QLYHUVLW\RI0DVVDFKXVHWWV3UHVV
/HR *XUNR -RVHSK &RQUDG *LDQW LQ ([LOH 1HZ <RUN 7KH 0DFPLOODQ
&RPSDQ\
/RUG8UVXOD6ROLWXGHYHUVXV6ROLGDULW\LQWKH1RYHOVRI-RVHSK&RQUDG3ROLWLFDO
DQG(SLVWHPRORJLFDO,PSOLFDWLRQVRI1DUUDWLYH,QQRYDWLRQ/RQGRQ0F*LOO
4XHHQV8QLYHUVLW\3UHVV
0F/DXFKODQ-XOLHW³$OPD\HUDQG:LOOHPV±µ+RZ1RWWR%H¶´&RQUDGLDQD
0F&OXUH-RKQ³3UREOHPDWLFSUHVHQFHWKHFRORQLDORWKHULQ.LSOLQJDQG&RQUDG´
7KH %ODFN 3UHVHQFH LQ (QJOLVK /LWHUDWXUH (G 'DYLG 'DE\GHHQ
0DQFKHVWHU0DQFKHVWHU8QLYHUVLW\3UHVV
0RUULV -DPHV 3D[ %ULWDQQLFD /RQGRQ )DEHU DQG )DEHU RI 3RVW
&RORQLDO 7KHRU\ DQG (QJOLVK /LWHUDWXUH $ 5HDGHU (G 3HWHU &KLOGV
(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
1DQG\$VKLV7KH,QWLPDWH(QHP\/RVVDQG5HFRYHU\RI6HOIXQGHU&RORQLDOLVP
'HOKL2[IRUG8QLYHUVLW\3UHVV
3DUU\ %HQLWD &RQUDG DQG ,PSHULDOLVP ,GHRORJLFDO %RXQGDULHV DQG 9LVLRQDU\
)URQWLHUV/RQGRQ7KH0DFPLOODQ3UHVV/WG
5DVNLQ-RQDK7KH0\WKRORJ\RI,PSHULDOLVP5XG\DUG.LSOLQJ-RVHSK&RQUDG
(0)RUVWHU'+/DZUHQFHDQG-R\FH&DU\1HZ<RUN5DQGRP
+RXVH
6DLG(GZDUG2ULHQWDOLVP1HZ'HOKL3HQJXLQ%RRNV
6DOPRQ(77KH1HPLVLVRI(PSLUH2[IRUG2[IRUG8QLYHUVLW\3UHVV
RI 3RVW&RORQLDO 7KHRU\ DQG (QJOLVK /LWHUDWXUH $ 5HDGHU (G 3HWHU
&KLOGV(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
6DUYDQ&3³5DFLVPDQGWKH+HDUWRI'DUNQHVV´-RVHSK&RQUDG+HDUWRI
'DUNQHVV$Q$XWKRULWDWLYH7H[W(G5REHUW.LPEURXJK1HZ<RUN::
1RUWRQ&RPSDQ\,QF
6FKZDU] 'DQLHO 5 ³$FWV RI LQLWLDWLRQ $OPD\HU¶V )ROO\ DQG $Q 2XWFDVW RI WKH
,VODQGV´ &RQUDG $OPD\HU¶V )ROO\ WR 8QGHU :HVWHUQ (\HV /RQGRQ
0DFPLOODQ3UHVV/WG
6FRWW 3DXO 7KH 'D\ RI WKH 6FRUSLRQ 7KH 5DM 4XDUWHW /RQGRQ +HLQHPDQQ
RI3RVW&RORQLDO7KHRU\DQG(QJOLVK/LWHUDWXUH$5HDGHU(G
3HWHU&KLOGV(GLQEXUJK(GLQEXUJK8QLYHUVLW\3UHVV
6WDSH-+HG³/RUG-LP´7KH&DPEULGJH&RPSDQLRQWR-RVHSK&RQUDG1HZ
<RUN&DPEULGJH8QLYHUVLW\3UHVV
7KDFNHUD\ : 0 9DQLW\ )DLU RI 3RVW&RORQLDO 7KHRU\ DQG (QJOLVK
/LWHUDWXUH $ 5HDGHU (G 3HWHU &KLOGV (GLQEXUJK (GLQEXUJK 8QLYHUVLW\
3UHVV
:DOGHU'HQQLV³6WXG\LQJ3RVW&RORQLDO/LWHUDWXUHV´3RVW&RORQLDO/LWHUDWXUHLQ
(QJOLVK +LVWRU\ /DQJXDJH 7KHRU\ 0DVVDFKXVHWWV 7KH %ODFNZHOO
3XEOLVKHUV
:DWWV &HGULF ³7KH &RYHUW 3ORW RI $OPD\HU¶V )ROO\ $ 6WUXFWXUDO 'LVFRYHU\´
&RQUDGLDQD
:ROIUH\V -XOLDQ /LWHUDU\ 7KHRULHV $ 5HDGHU *XLGH 1HZ <RUN 1HZ <RUN
8QLYHUVLW\3UHVV
<RXQJ 5REHUW -& 3RVWFRORQLDOLVP $ 9HU\ 6KRUW ,QWURGXFWLRQ 1HZ <RUN
2[IRUG8QLYHUVLW\3UHVV
© Copyright 2026 Paperzz