Dr. Ross Jackson: Tackling the Global Crisis

With crisis all around us at this critical time in history, it is time to start asking ourselves some hard questions that are not normally part of the daily political discourse. Let us step back for a moment and take a realistic look at the global status quo.

The very first thing that requires recognition is the fact that the current economic/political world order today is totally dysfunctional—ecologically, economically and socially. The system is simply not working for the great majority of world citizens. It is time that we seriously ask ourselves why this is happening to us. The latest example is the Cyprus crisis, which is a direct spinoff of the southern European economic crisis, which in turn is a spinoff of an even greater systemic problem. In many European states, the same underlying causes are slowly destroying our welfare states and social cohesiveness. If we do not soon come to grips with the underlying causes, we can look forward to further deterioration of our society and our environment.

The Underlying Cause

It is my thesis that all of these crises are a direct and predictable result of major changes in the global economic/political structures, which were introduced roughly thirty years ago without any public debate.  The new structures—which were a reversal of the previous, widely successful economic policies of what many have called the “Golden Age” from 1945-1980— go under the name of “neoliberal economics”. The major instruments of the changes were the three international organizations, the World Trade Organization (WTO), the International Monetary Fund (IMF) and the World Bank, all three more or less under the control of the USA. All three reversed their policies and original mandates without any public debate during the regimes of President Ronald Reagan in the USA and Prime Minister Margaret Thatcher in the UK.

“Neoliberalism” was from the beginning a political project having nothing to do with economic science, a plan purposely designed to further the interests of a very small, wealthy elite, who control the great majority of multinational corporations. In 2010, the top 1% in the USA owned 64.4% of all American financial securities, and 62.4% of all business equity. The project was carried out purposely, cleverly, and with great success from the point of view of its promoters, resulting in an enormous transfer of wealth from the middle class and the non-profit sectors of society—the environment, communities, and social welfare— to the already wealthy. Among other things, it was specifically designed to destroy the European welfare state, and is well on its way to doing so. Susan George, honorary president of ATTAC, calls it “one of the greatest hold-ups of ours or any generation.”

The results of the neoliberal experiment are now clear to everyone after thirty years:

Unprecedented degradation of the environment.

Increasing inequalities between rich and poor countries and within all countries as the rich have become richer and the poor have become poorer.

No increase in well-being in spite of substantial economic growth.

The underlying economic philosophy, which Joseph Stiglitz, former chief economist of the World Bank has called “more religion than economics”, has dominated international relationships for the last thirty years. Neoliberal economics was specifically designed to benefit the strong over the weak, capital over labour, creditors over debtors and the wealthy over the poor, but was cynically and cleverly packaged as a way to benefit all world citizens. Its claim was that all would benefit from its recommended economic policies: the free flow of goods without tariffs; the free flow of capital across borders; deregulation of corporations; and the privatization of public monopolies. It is a system designed to meet the wildest dreams of multinational corporations who wish to be able to operate in any country as they please without restrictions and with no democratic or moral responsibility to anyone.

Naturally, corporate interests in all countries are attracted by this concept as they stand to benefit, and they lost no time telling their politicians so in 1994. That was what made it possible to dupe an unsuspecting public into acceptance of a WTO that is now the major hindrance to achieving a sustainable future for this planet and a threat to our very survival.  All of the premises of neoliberal economics are demonstrably false, yet it has been marketed cynically and successfully. Most of the allies of the USA and the UK bought into the concept, not realizing that it was a recipe for the destruction of both the environment and democracy. American philosopher and former professor of politics at Princeton University Sheldon Wolin is one of the USA's leading political theorists. He calls the political system which has evolved in America "inverted totalitarianism... the political coming of age of corporate power and the political demobilization of the citizenry”.

John Gray, professor of European Thought at the London School of Economics puts it this way: “Those who seek to design a free market on a worldwide scale have always insisted that the legal framework which defines and entrenches it must be placed beyond the reach of any democratic legislature.” Gray shows that “democracy and the free market are rivals, not allies.”  The WTO and IMF are both excellent examples of such undemocratic institutions.

Among other things, neoliberalism is a threat to our very survival as a species. Anyone in doubt should listen carefully to James Hansen, former director of the NASA Goddard Institute, and probably the most knowledgeable person on global warming, who stated recently that if Canada and the USA implement their current plans to fully exploit the Alberta tar sands and shale gas, then “it will be game over for the climate”, meaning irreversible out-of-control warming.

The Political Dilemma

Globally, we are currently consuming roughly 50% more renewable resources each year than nature can replenish, as shown by the most recent report from the World Wildlife Fund and illustrated in the chart below. This situation is untenable, potentially suicidal, and totally removed from any public debate, where politicians still imagine they are operating in a world that existed 60 years ago, when the global ecological footprint was only about 50% of world biocapacity, and more economic growth was a reasonable goal. In a world of 50% overconsumption, that goal has become absurd.

[caption id="attachment_3609" align="aligncenter" width="433"] Source: www.footprintnetwork.org[/caption]

From the viewpoint of our politicians, they see little choice. “Reforms”, they claim, are necessary to meet the competition from abroad if we are to maintain jobs in our country, meaning lower wage growth, cuts in welfare even for the poorest segments of society, and tax breaks for corporations to meet the competition. But this way of defining the problem takes the neoliberal model as given—a model, which was designed to force precisely these austerities upon us, and for the benefit of foreign commercial interests.

The Race to the Bottom

The international playing field is not level. In a world of free markets and unrestricted capital flow, no country, and especially not a small developing country, has the slightest chance of competing with sociopathic multinational corporations that are often larger than most countries, that exploit Asian sweatshops with near slavery conditions, that minimize their tax contribution to society with the use of tax havens and transfer pricing, which use their considerable muscle to obtain all kinds of financial concessions wherever they operate, and are under no pressure to be either socially or environmentally responsible. A local company that wants to compete successfully with the multinationals under WTO rules has little choice but to leave its home country and try to follow the same policies, in what is a race to the bottom, environmentally, socially, and economically. Those with a higher moral standard that stay behind and try to develop more environmentally friendly production technologies are penalized by WTO rules that reward those who are best at exploiting the environment.

But, you might say, can the local government not put tariffs on foreign imports produced under lower environmental standards and protect leading edge innovative domestic industries? Surely that is the logical solution if we want to become sustainable? No, they cannot, under WTO rules, which were written by corporations for corporations, without regard for the consequences for the environment, the welfare state or social considerations, and which just about every major country accepted in 1994 or since, against the wishes of the developing countries and without any public debate. This WTO rule is, in my opinion, the single most important barrier to a sustainable future, and the major reason why insufficient progress is being made in the technological innovation that is necessary if we are ever to live in a sustainable world. This rule also explains why the EU CO2 emissions quota system has never worked and will never work as intended. If the quota costs were high enough to have a real effect on technologic research, major European companies would be forced either to leave the EU to survive or stay and lose market share to foreigners with lower standards. It is as simple as that.

The EU leadership, under the influence of its corporate sector, has also bought into the dysfunctional neoliberal philosophy. It was reflected in the charter of the European Central Bank established in 1998 with the sole objective of keeping inflation down without consideration of the effects on unemployment. It was also reflected directly in the subsequent proposal for a formal EU constitution that would have institutionalized neoliberal economics as EU policy, but which was fortunately rejected by referenda in France and the Netherlands in 2005. It is also central to the current eurozone crisis, as the political leadership forces austerity on its citizens in an effort to protect creditor banks from absorbing their speculative losses.

What can We Do?

The opposition to change in the status quo is so massive that totally new thinking is required for those who want to put an end to it. While a vast majority of world citizens is dissatisfied and would support radical change, no imaginable initiative from civil society can do the job, as NGOs are fragmented into too many separate parts that cannot realistically act together without outside help in what must be a global initiative to succeed. But there is another possibility.

In Occupy World Street, I have put forward a concrete design for a radically new global political/economic world order that is more in keeping with what the vast majority wants, and a strategy to get there.  I can only touch on it briefly here. The key is to show the world that a sustainable and just alternative to neoliberalism is not only possible, but exists on the ground. To do so requires cooperation between a few small countries who are prepared to take the initiative to form a new international organisation among their members, and civil society around the world that will give their backing once the new organization is established. This is a strategy of leading by example, the only kind of leadership worthy of the name; an example of what Mahatma Gandhi called “being the change you want to see in the world”.

The most important thing required to bring it about is the courage of a small number of visionary political leaders who are prepared to stand up and say to the world, “We have had enough. From now on we are going to do things differently. Please join us.”


CFI.co Meets Carlos Hank González

[caption id="attachment_4114" align="alignright" width="210"] Carlos Hank González: CEO – Banco Interacciones[/caption]

In 1993 Carlos Hank González started his professional life as an executive of the trading desk in the Interacciones Casa de Bolsa.

Later on, he experienced a rapid rise within Banco Interacciones. He was only 23 years young when he joined the team in 1995, as the country was suffering a heavy financial calamity.

He was an integral part in the creation of Hermer’s Automotive, the first distribution company of Mercedes-Benz in Mexico. The following year, dealing with the peso devaluation, Carlos Hank returned to Grupo Interacciones to help the firm to face the economic crisis and later was appointed to lead different business areas within the group. Gradually, Hank assumed leadership of the various businesses until finally in October 2000 he was named CEO of the whole business while his father carried on as chairman of Grupo Financiero Interacciones, formed by Banco Interacciones, Aseguradora Interacciones, Interacciones Casa de Bolsa and Interacciones Sociedad Operadora de Sociedades de Inversión, with an annual financial income of USD$1.1 billion and more than one thousand employees. Carlos Hank carried out equity injections to strengthen the financial situation of the company and made a plan to promote the company’s growth.  The plan sought to find operational niches, to select market strategies and to develop a well trained work team. With this plan, Grupo Interacciones was strengthened and became a major financial lender for local governments and infrastructure projects.

With this strategy the bank has had an accelerated growth in its fundamentals, growing by tenfold its equity, its assets as well as its net income.

"Hank is very much a man with his own merits, works hard for his clients and strives towards continuous growth for the bank. He acquired a degree in business administration with a specialization in finance from the Universidad Iberoamericana."

In 2008, he was also appointed as the CEO of Grupo Hermes, founded in 1978 that operates in the construction and infrastructure sectors thorough its business units: Hermes-Infrastructure, Hermes-Construction, Hermes-Concessions and HOATSA a high quality investment. In the energy sector includes CERREY, a leading company in industrial boiler production with presence in 23 countries. In the automotive sector, HERMER performs as an auto distributor in the Premium segment of the Mercedes-Benz brand. Also, Grupo Hermes has presence in the transportation and touristic sectors, and has been committed with the economical and social development of Mexico, with annual sales in 2011 of USD$572 million and 6,800 employees.

Today, Carlos Hank González heads the two companies that his grandfather, Carlos Hank González, established: Grupo Financiero Interacciones and Grupo Hermes. Moreover, he is a member of other Boards of Directors, such as Bolsa Mexicana de Valores (The Mexican Stock Exchange).


Hero Hrabowski: Cool To Be Smart

[caption id="attachment_3845" align="alignright" width="199"] Freeman Hrabowski[/caption]

It’s Birmingham Alabama in 1962 and a twelve year boy with an unusual name is sitting at the back of his church doing maths homework while listening to the minister preaching. Even at that young age it was clear to Freeman Hrabowski III that he lived in a society which, because of his complexion, did not afford him the same rights and opportunities as others. But inspired by his preacher Martin Luther King Jr., he led a group of other children through the streets of Birmingham, against the fire hoses, against the police dogs and against the police chief Bull Connor. He led his group of underage activists all the way to the jail house where there would stay for five days.

As we all know, Hrabowski’s country would overcome the evils of racial segregation and the nation would start the healing process. Freeman Hrabowski knew in very real terms the value of an education and took full advantage of each one of his hard-fought opportunities. Hrabowski graduated at age 19 from Hampton Institute with high honours in mathematics. At the University of Illinois at Urbana-Champaign, he received his M.A. in Mathematics and four years later his Ph.D. (Higher Education Administration/Statistics) at age 24. Since 1992 he has served as president of the University of Maryland, Baltimore County.

"There is something exciting about being in an environment in which it's really cool to be smart."

Knowing from a tender age what it is to be on the winning side of history, Freeman Hrabowski uses his position as educator to make sure his country stays a winner. Over the last few decades the US has been losing ground in the field of education, particularly in maths and the sciences. The figures given by Hrabowski in his many lectures are disturbing. Less than a third of students who start of in maths or sciences will finish their studies, most will either change major or drop out altogether. The numbers are worse when considering only African American and Hispanic students and there are also huge discrepancies between the genders. Beyond the socio-economic factors, Hrabowski sees these trends as symptomatic of a failing educational culture. Students are not properly engaged; they are told early on what kind of student they are: that science just isn’t for them and as clichéd as it may sound, that mathematics isn’t for girls.

Even before taking on the role of president of UMBC, Hrabowski fought to correct demographical discrepancies in education. In 1988 he co-founded the Meyerhoff Scholars Program which is open to all high-achieving students committed to pursuing advanced degrees and research careers in science and engineering and seeks the advancement of under-represented minorities in these fields. As President of UMBC Hrabowski does not settle for mediocrity, he demands excellence not only of his students, but also of his faculty and of himself. He has implemented major changes in the learning culture, particularly in the science departments. A major component of the studies of all students is learning through problem solving, real world problems supplied by private companies located on campus. This style of teaching is intended to engage students and to teach the principles of their discipline at the hand of practical implications. In 2008, he was named one of America’s Best Leaders by U.S. News & World Report, which in 2009, 2010, and 2011 ranked UMBC the #1 “Up and Coming” university in the nation.

Having watched hours of talks given by Freeman Hrabowski, it is clear he has the best qualities of an excited inspiring professor, but it is equally clear that on stage and behind a lector stands a man committed to make a change. His style of rhetoric seems almost to be evangelizing; his passion, his punctuation, provoking audience response, evens the occasional corny joke. The parables he tells are about the students he meets on campus, or the story of his grandmother passing the literacy test and being able to vote. There are boundless clichés espousing the importance of learning, all of them true, but none comes close to articulating that importance quite like an educator with the infectious drive to make sure all his students succeed. One story that comes up quite a lot is that of orientation at UMBC. Students are told to look to the person to their left and to the person to their right, Hrabowski then states his mission – which is to make sure all three graduate.


Doug Guthrie: Understanding China

[caption id="attachment_3854" align="alignright" width="176"] Doug Guthrie[/caption]

Prof. Doug Guthrie is the dean of the George Washington University School of Business. Of course he is a most accomplished academic but interestingly also an expert on China.  Guthrie has sometimes come in for criticism as being too pro-China but we would suggest that he is a business school leader well worth listening to. He has a deep understanding of China's development and how its culture impacts that development and has bought this knowledge to the School. With the ever-growing importance of the Chinese economy and the country's increasing political influence, the guidance Prof Guthrie provides should put George Washington University right at the top of the list for business students who truly want to understand China. Not just what is happing in the first tier cities but also how China’s development is creating opportunities right across the country. There is far more to Doug Guthrie than his China expertise but we feel that the Dean’s deep political and economic knowledge of the country is having a real impact.


Koofi and the Changing Face of Afghanistan

[caption id="attachment_3872" align="alignright" width="184"] Fawzai Koofi[/caption]

Some of us are burdened with lives of few hardships. Some of us are born to loving parents, have never experienced hunger, have access to quality healthcare and education, live in countries without war or unrest and have never had our rights denied by the hatefulness of others. We unfortunate few simply have had to learn to do without the luxury of obstacles. The best we can do is hope and fantasise - whenever we hear stories of true heroism - that we too, given the opportunity, could be so courageous. But then there are stories where no amount of self-delusion could grant such a fantasy. It’s a very unsettling feeling when you hear stories of people and you know immediately that they are much braver than you could ever be. If after hearing the story of Fawzai Koofi you do not find yourself in this position, then congratulations - you are a better person than me and in all honesty, you frighten me slightly.

Initially rejected by her mother on the day she was born, Fawzai Koofi was left out to die in the Afghan sun. Luckily, at the last minute her mother had a change of heart and rescued her. When Fawzai grew up she persuaded her parents to send her to school, making her the only girl in the family to attend. She went on to graduate from Preston University in Pakistan with a master's degree in business and management.

“I will not rest in my desire to lead my people out of the abyss of corruption and poverty.”

Koofi originally wanted to become a physician, but chose instead to study political science and become a member of UNICEF. She worked closely with vulnerable groups such as Internally Displaced People (IDP) and Marginalized Women and Children – serving as a child protection officer from 2002 to 2004.

Following the 2001 invasion of Afghanistan, Fawzai embarked on her political career and campaigned for the right to education for girls. In 2005, she was elected as a member of the Afghan parliament - following in the footsteps of her father whose 25 year political career came to an end when he was killed by the Mujahideen during the first Afghan war. Re-elected in the parliamentary elections of 2010, Fawzia is currently serving as a Member of Parliament in Kabul and is the Vice President of the National Assembly. Earlier this year, she announced the intention to run for the presidency of Afghanistan in the 2014 elections.

Since taking up office, Fawzia Koofi has championed the growing role of women in her country but has also fought to secure access to basic services and education - especially in rural areas and has seen her popularity grow in the Badakhshan district. Despite a growing number of supporters, there are those who do not approve of the changing face of Afghanistan as represented by her and there have been several attempts on her life. Fawzia believes that with the withdrawal of US troops starting next year, discussions with the Taliban will be needed to secure stability but holds that there are certain terms which are unconditional - namely the rights of women, respect for the constitution, and the denunciation of any ties to Al-Qaida.

Fawzia has two daughters. Her husband died in 2003 shortly after being released from Taliban custody. Considering her level of education, she could have easily have carved out a comfortable career and gained respect for doing so well despite many obstacles. But instead, love for her country and her people have compelled her to fight. She is fighting to ensure that her beautiful country becomes the stable and prosperous place she knows it can be. Fawzia Koofi fights so that her daughters can fulfill their potential in their own country, and -just like us -need never know how courageous they might have been.


Sally Blount: A Social Psychologist's Touch

[caption id="attachment_3865" align="alignright" width="233"] Prof. Sally Blount[/caption]

Prof. Sally Blount is the dean of Kellogg School of Management. Kellogg is very much seen as a competitor to some of the big names in business education and as such has always needed to be an innovator. Blount is certainly continuing in that tradition. Her academic background is not that of an economist (she is a social psychologist) but given that perhaps the most important skill you can learn at business school is how to build effective organisations it does seem surprising that there are not more deans with Prof. Blount’s academic background. Since becoming dean in 2010, she has been continuing to lead Kellogg in its innovative tradition - positioning the school to understand and teach the skills required by management in the 21st Century. Prof. Blount is an academic who understands the need for pure research and how to apply and pass on that knowledge. The role of a leader in a school like Kellogg is very much that of identifying the big questions concerning business interactions with society and in Prof. Blount the School has a leader who can efficiently focus that research and help teach the benefits of its findings.


CFI.co Meets CEO Jamal Bin Ghalaita

Emirates Islamic Bank – Best Islamic Bank UAE, 2012

[caption id="attachment_4120" align="alignright" width="258"] Jamal Bin Ghalaita[/caption]

Recognized as the “Best Islamic Bank, UAE – 2012” Emirates Islamic Bank is an excellent example of a modern financial institution with a strong Islamic proposition. Established in 2004, Emirates Islamic Bank opened its doors with the clear goal of offering discerning customers Islamic finance solutions. Combining the best in Shari’a compliant services with the strongest levels of customer care and efficiency, the bank has established itself as a major player in the highly competitive financial services sector in the UAE.

Within a short span of time, Emirates Islamic Bank has positioned itself among the largest Islamic Banks in the country, and the 6th largest in the UAE. The bank offers a broad range of products and services developed on the highest ethical standards and offering customers the transparency that they seek in their financial partner.  It is these principles that have made the bank an attractive choice, to customers that are seeking a strong, honest financial partner, irrespective of their religious affiliations.

The UAE stands as one of the most competitive financial services markets in the world with over 50 banks vying to establish themselves as a notable presence.  Emirates Islamic Bank has had admirable success in carving out a strong presence for itself in this aggressive market.  It combines a bricks and mortar presence that currently stands at 49 branches, with a network of alternate channels that include over 150 ATM machines, online, SMS and phone banking.  The bank has also been recognized as the first Islamic bank to offer a comprehensive suite of mobile banking services across the three key mobile platforms Android, Blackberry and iPhone. It is this flexibility to bank anytime, anywhere coupled with the best in face to face service that continues to drive the bank’s rapid growth in the market.

However, what earned Emirates Islamic Bank the highly sought award of “Best Islamic Bank” in the country was not just its superb offering. The deciding factor for the judges to name the bank as the best was actually the ‘breakneck’ growth that the bank has seen in 2012, to become one of the fastest growing banks in the country. A statement that holds true when measured against both Islamic and conventional banks in the region.  2012 has seen Emirates Islamic Bank grow its branch network by nearly 50%, grow its customer base by over 30%, and expand its offering across all Commercial and Retail segments, with special focus on targeted propositions to each segment (mass, affluent, high net worth, and SME).

The Acquisition of Dubai Bank

Adding to the achievement, Emirates Islamic Bank has managed to achieve such growth while also completing an acquisition of the portfolio and branches of a sister Islamic Bank, Dubai Bank, during the year. Following the acquisition of Dubai Bank by Emirates Islamic Bank’s parent Group, Emirates NBD, Emirates Islamic Bank acquired the majority of Dubai Bank’s portfolio through a seamless transition in November 2012, a migration that was comprehensively planned and implemented through the year. Having been able to complete the migration within such a short period and without affecting the growth drive is another ‘case study’ that raised the admiration of the banking industry in the UAE and the region.

New Leadership

Under the leadership of the newly appointed CEO, Mr. Jamal Bin Ghalaita, the bank has redefined its strategy in late 2011 to focus on the Retail, SME, and mid-market segments. Following the new strategy, the bank has aggressively expanded its product and service offering to become a truly customer focused entity, one that is determined to become a lifetime partner for its customers, by providing the services they need when they need them. Within the short span of the year, the Emirates Islamic Bank brand has become known for best value banking across the target segments, reflected in the steep growth in customer base through the year. The speed of the bank’s refocus and the speed of impact achievement on the ground is one that definitely draws the envy of most organizations across the globe, not only in the UAE.

The success was also reflected strongly in the bank’s financials for the year. The bank has managed to grow its operating income for the year by over 60%, building on the aggressive growth of customer base and assets. Such solid growth is further supporting the bank in continuing its proposition build-up for its customers in 2013 and the years ahead. Building on such strong foundations, the bank is on track to further expand its branch network and focused segmental offerings within the SME and high-net worth segments.

This sharp focus and impressive growth is actually better understood when one looks at the leadership of the bank. Mr. Jamal Bin Ghalaita is a veteran banker with over 20 years of experience in the industry, with a solid track-record of business build-up. In his last role, Mr. Bin Ghalaita has served as the Deputy CEO and General Manager of the Consumer & Wealth Management division of Emirates NBD, the largest banking group in the UAE. During his tenor with Emirates NBD, Mr. Bin Ghalaita was instrumental in driving Emirates NBD towards the realization of its core vision, to be recognized as the leading financial services provider in the Middle East. As GM of the Consumer and Wealth Management (CWM) division, he established and grew multiple key businesses for the Group, including Private Banking, Asset management, and Emirates Money. Under his leadership, the CWM division has grown by nearly 800% within a span of less than 5 years, a success that he is looking to replicate within Emirates Islamic Bank to position it as a leading financial institution within the UAE.

Mr. Ghalaita began his career in 1990 after completing his Bachelor’s Degree in Business from the University of Arizona and joined what was later to become the Emirates NBD Group, one of the largest financial conglomerates in the UAE.  His focus, energy and commitment saw him rise rapidly through the ranks and across different departments to the role of GM of the Consumer Wealth Management Division in 2007, and the Deputy CEO of the Emirates NBD Group in 2009.

It was at this stage of what was already an extremely illustrious career that Mr. Ghalaita decided that it was time to take on a fresh challenge with Emirates Islamic Bank. Taking over at a critical juncture in the bank’s history, the moment where it was mandated to drive for market leadership and was also about to take on the challenge of absorbing the portfolio of another Islamic bank, an amalgamation that was the first of its kind in the Islamic banking market in the UAE. With their checkered history, acquisitions in the banking industry have always been fraught with challenges.  But Mr. Ghalaita was successful in shepherding the journey of two distinct banks to the creation of a single customer focused entity in record time and perhaps even more surprisingly under budget.

“My biggest challenge was to shape the management team to fully understand the potential of what we were becoming.   Today, I am proud to lead one of the best and most aggressive management teams in the industry, one that has helped the bank achieve unprecedented growth rates and helped us establish ourselves as a leader in this industry.” said Mr. Ghalaita when asked about what was the key driver towards Emirates Islamic Bank’s ability to achieve its goals, while simultaneously managing the upheaval and uncertainty brought on by the acquisition.

Complete Financial Solutions

One of the biggest changes initiated during Mr. Ghalaita’s tenure has been the move away from traditional product based approach towards banking, towards a segment based, relationship driven solution provider.  This was a strong element in the bank’s strategy in 2012 and remains a key focus in 2013.  With a broad range of services and an aggressive focus on “cross-sell”, the bank wants to be the “primary bank” for all its customers. “We are in the business of providing complete financial solutions that fulfills our clients’ financial needs, and thus creating long-lasting relationship with our client; we are not in the business of selling banking products.  We see ourselves as partners in the journey that our customers are on, whether that journey begins as a young UAE national starting his first job or an expat making a move to a new country looking for a bigger challenge.” said Mr. Ghalaita,

Coupled with the customer focus that is so necessary for a successful organization, Mr. Ghalaita is also full cognizant of the fact that it is the people within the organization that drive its ongoing success.  An inspirational presence at all times, his voice takes on a new passion when he speaks of the role his people are playing within the organization.  “I believe that no matter how much money we spend on technology or building bigger and better branches, we cannot succeed without the support and commitment of our people.  They are our ambassadors at every ‘moment of truth’ and as a service business we want to deliver on customer expectations in every encounter with the bank.  I want to build a culture that values talent and ambition, one that realizes that not even the best of us can manage alone. We are a team and that is what drives our success.”

It is this belief in his people and the value of a unified culture that has led to the concerted effort to put people at the heart of the organization. In an industry that is often cavalier with its human capital, Emirates Islamic Bank is focused on building that capital to create a truly differentiated financial services institution.

At the end, Mr. Ghalaita offers a very clear vision of the future for Emirates Islamic Bank, “Today, our bank stands as an example of what the right combination of ambition, drive and customer focus can achieve.  I have great faith in our ability to deliver on our ambitions to become the preferred banking partner for our customers in the UAE.  As an Islamic bank we operate to the highest ethical standards, offering our customers transparency and clarity in an often confusing market.  I believe this gives us the edge, not just among customers who are looking for Islamic banking but those who are looking for ‘a satisfying’ banking experience.


Strategy & Entrepreneurship from Alice Guilhon

[caption id="attachment_3878" align="alignright" width="205"] Alice Guilhon[/caption]

Prof. Alice Guilhon is the dean of Skema the new business school created through the merger of Lille School of Management and Ceram, in Sophia Antipolis, France. Under her leadership Skema has opened campuses on two techno-parks, one in China (Suzhou) and the other in the United States (Raleigh, North Carolina). She is practising what she preaches as a professor of strategy and entrepreneurship. With the globalisation of education the strategy of merging is a clear way forward meeting the demand from students for truly international education and Skema has firmly established itself as a brand in the business education market place. Under Prof. Guilhion Skema is taking shape not only as new educational force in Europe but on the global stage too. This charismatic dean has set a benchmark on how business education can globalise but - just as importantly - she recognises that there is limit to how large even an international school can become and still remain coherent. While many others have been discussing how to internationalise, Prof Guilhion has reached the implementation stage.


Al-Ghannouchi, Our Hero in Tunisia

[caption id="attachment_3883" align="alignright" width="134"] Rashid Al-Ghannouchi[/caption]

Rashid Al-Ghannouchi, 71 years, was co-founder of the Ennahda Movement which is now Tunisia’s largest political party. A philosophy graduate of Damascus University, he moved to Syria following the expulsion of Tunisians from Egypt where he was studying in 1964. A writer of the first order, Al-Ghannouchi has had enormous influence in religious and political thought throughout the region.

In 1981, Al-Ghannouchi founded Islamic Tendency which was defined by non-violence and called for a more equitable society, political pluralism and democracy. Within months he was arrested, tortured and imprisoned. He would become a political exile in Europe and vocal opponent of the regime at home.

"We used the police to keep order before. Today we're not resorting to violence. People are free to do what they want, so they are learning how to exercise their freedom in a responsible way."

A key figure in Tunisia’s post Arab Spring democratic transition, Al-Ghannouchi was instrumental in allaying fears that the void would be filled by radical Islam. He offered a vision of an inclusive political movement but one that was rooted in Islam. After election success he proposed a secular partner as president (Moncef Marzouki - one of our Autumn 2012 Heroes) and took no office for himself.


CFI.co Meets Luis Gerardo Del Valle Torres

Expertise

Luis has extensive experience in Tax consultancy in both domestic and international tax fields, including corporate and commercial, mergers and acquisitions, banking and finance insurance law, strategic alliances, joint ventures, investments and fund structures, tax litigation and private clients.

[caption id="attachment_4128" align="aligncenter" width="359"] Luis Gerardo Del Valle Torres: Chairman, Del Valle Torres SC, Mexico City[/caption]

Professional Highlights

Cambridge Overseas Society,

Barra Mexicana Colegio de Abogados

Colegio de Profesores e Investigadores de Derecho Fiscal y Finanzas Públicas

Asociación Nacional de Abogados de Empresa.

Luis Del Valle received from the Universidad Nacional Autónoma de México authorities the Eduardo García Maynez and Gabino Barreda medals for obtaining the highest academic achievement in his class; He has also been awarded with the first place in the National Contest of Administrative Justice organized by the Federal Court of Tax and Administrative Justice and has participated in numerous seminars, panels.

Affilliations

International Fiscal Association

Languages

French, English and Spanish

Academic Background

Universidad Nacional Autónoma de México, Attorney at Law, magna cum laude, 1999; University of Cambridge, England, British-Chevening Scholarship, Master’s in Commercial Law, 2001; University of New York, NYU, Master’s in International Tax Law, 2002. Publications: Sistema Fiscal Federal Mexicano.- Su Revisión ante los Principios Jurídicos y Económicos” edited by the “Tribunal Federal de Justicia Fiscal y Administrativa,” 2001

Overview of the Firm

Del Valle Torres, S.C. has its offices in Mexico City and is one of the leading law firms in Mexico specializing in tax.  In general the firm’s attorneys have law degrees from Mexican universities and LLMs or post-graduate studies in leading Universities in the United States of America and Europe.  Del Valle Torres, S.C. is committed to excellence and has worked in major transactions having one of the most important practices in the country in tax on cross-border –transactions, real estate, private clients and litigation.

Main areas of practice: Del Valle Torres, S.C. renders tax consultancy services in general, including domestic and cross-border transactions.

This Mexican law firm has ample expertise in the structuring of investment funds for the most important real estate funds and pension plans both domestic and international.

The firm provides tax advice to high net-worth and ultra high-net-worth individuals, international banks and insurance companies on the design of products for purposes of estate and wealth planning.

Del Valle Torres S.C. has broad expertise in administrative reviews before the tax authorities, as well as litigation on nullity Petitions and Amparo procedures before the Mexican Federal Court of Tax and Administrative Justice, District and Circuit Courts and the Supreme Court of Justice.

Latin America Offices / Mexico

Edificio Omega, Campos Elíseos No. 345

Floor 5, Office 501 B

Col. Chapultepec Polanco

C.P. 11560, México, City

Tel. + 52 55 9126 1560

Fax +52 55 9126 1573

Email: lvalle@dvtmx.com

Website: www.jaureguiydelvalle.com


Shell: Reduced Crude Oil Theft

[caption id="attachment_3944" align="alignright" width="300"] Shell Nigeria[/caption]

Shell’s Nigerian unit says crude oil theft from its facilities in the Niger Delta is reducing, a development he attributed to the surveillance of the Joint Task Force, JTF, set up by the Nigerian Government to check the menace.

Shell had constantly complained about the high incidence of pipeline vandalism and crude oil theft, resulting in revenue losses estimated at over $10billion annually. The company had in fact, recently threatened to shut down its operations if the nothing was done to contain it urgently.

However, speaking on the sideline of the Offshore Technology Conference, OTC 2013, in Houston Texas, USA, the Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu said, “certainly it was on the increase a few months ago, but I can also tell you, I have seen increased attention by the government security agencies, the JTF, Navy, really moving in to stem the tide. So I wouldn’t say I am happy, but I can see improvement in the responsiveness of the government security agencies.”

"There is hardly a day without an attempt, they are arresting vessels, they are destroying illegal refineries."

The Shell boss refused to quantify, as he regularly did in the past how much oil had been saved since the JTF swung into action, but rather said, “I will be in a position to tell you when our Nembe creek trunkline is back up, but right now, that line is down. Like I said, we are removing the bunkering points from that line, once all those bunkering points are removed, and the line is up and running, we will then be in a position to judge how much oil we are still losing. But right now, whatever figure, I give you, is really going to be artificial.”

For him, what is most important is the fact that the JTF is getting more and more effective. “We are having almost a daily discussion with them and they do give us good reports on their efforts so far. I have been in discussion personally myself with the Chief of Naval Staff and the Chief of Army Staff and they have all given their commitments to work with oil the companies to stem the tide.

“We are seeing progress, but like I tell you, this is a very big operation, so I am not expecting solution over night, but what I am expecting is that government security agencies will really keep at what they are doing now. If they keep at it for a while, I am sure we will begin to see a significant reduction.

“There is hardly a day without an attempt, they are arresting vessels, they are destroying illegal refineries. In a place like Bodo for instance, in a week or two ago, they foiled over 30 different attempts by crude oil thieves wanting to attack additional tamping point to our line. We see all these successes every day, but we just need to keep at it, because you cannot afford to take your eyes off the ball.”

As far as the force majeure is concerned, Sunmonu noted that this will keep up for a while until “we fully recover because even with all the efforts that government security agencies are putting in, there are some steps we need to take together jointly in order to make sure the effects are not continuing.

“So the force majeure that you have seen declared is for us to some of the very bad bunkering points that have been put on the line, because we don’t remove them, even if you have the whole Nigerian Army in the creek, you still continue to see crude being stolen. So our initial attempt is to remove those bunkering points to compliment what the security agencies are doing.”


CFI.co Meets Fady Jamaleddine

[caption id="attachment_4141" align="alignright" width="220"] Fady Jamaleddine[/caption]

Fady Jamaleddine (FJE) is the Founding Partner of MENA City Lawyers – MCL Lebanon, whereby he brings to the team over 25 years of experience. Prior to creating MENA City lawyers, FJE headed a prominent Lebanese law firm.

FJE leads a large team of local and international lawyers, and is the driving force behind the growth of MCL, and the desire to establish and strengthen the most prominent Global Pan-Arab law firm.

FJE has extensive experience in Banking, Commercial and Corporate law, Real Estate and Construction and is responsible for handling and assisting MCL’s most high-profile international and local clients. He also works extensively in the field of Intellectual Property, and has created a service unmatched within the MENA region providing not only the monitoring, mitigation and management of Intellectual property, but a service whereby an undertaking is made to ensure that all compliance, language translations and any proscriptions offered meet with the requirements and local laws of the region.

FJE’s wealth of experience stems from his years of acting as Counsel for some of the world’s largest multi-national corporations conducting business in the Middle East region, coupled with his provision of legal services and advice to numerous Governmental entities throughout his long and successful career.

MCL Lebanon was built on an idea that FJE personally intended to create a truly Pan-Arab law firm, founded on a strategic regional knowledge base and network and thereby creating a practice able to compete with the most successful Global firms. His management oversight has ensured that MCL Lebanon has fast become one of the largest, premier and most successful law firms in the region.

“Fady Jamaleddine has also been instrumental in creating the first Code of Ethics for Lawyers in commercial practice within the region, and constantly strives to ensure MCL Lebanon is renowned for it’s corporate responsibility in all aspects of it’s practice.”

Multi-lingual, FJE provides advice and assistance in Arabic, English and French on a daily basis, offering clients the utmost professional service, and relying on his large team of lawyers and partners to assist him on the most complex of cases.

FJE has also been instrumental in creating the first Code of Ethics for Lawyers in commercial practice within the region, and constantly strives to ensure MCL Lebanon is renowned for it’s corporate responsibility in all aspects of it’s practice.

FJE has authored numerous articles, and has also created an Islamic Finance lexicon offering insight and guidance to his International clients, unfamiliar to the terms and practices intrinsically linked with the Islamic Finance sector.

FJE is an extremely accomplished individual, who has traveled extensively, and possesses a great understanding of numerous global cultures, affording him skills and attributes which permit him to provide unmatched services to any of his clients.

FJE has actively sought to promote the issue of Human Rights throughout the years of his corporate practice in the Middle East Region. He was instrumental in launching the MCL Annual pro bono initiative. FJE also successfully inaugurated the first Lebanese Association for Human Rights. He drafted and implemented a Code of Ethics within his MCL network, and remains committed to the development of the legal sector in Lebanon. FJE truly does encompass the skills and qualities of one of the most forward thinking practitioners in the MENA region.

On a personal level, FJE runs a large, successful Bio-experimental farm in the Bekaa valley of Lebanon. This farm has seen the implementation of a solar panels initiative and continues to strive for novel, organic planting. FJE is a true champion of development within his home country.

FJE’s ambitious plans for MCL Lebanon have assured that his firm will continue to grow and retain the title as the most prominent and most successful Pan-Arab law firm for many years to come. i


The IMF on Prospects for Growth:  Latin America & Caribbean

[caption id="attachment_3899" align="alignright" width="244"] Uruguay[/caption]

Growth in Latin America and the Caribbean is set to pick up from 3 percent in 2012 to 3½ percent in 2013, supported by stronger external demand, favorable financing conditions, sand the effects of earlier policy easing in some countries, according to the International Monetary Fund.

In its Regional Economic Outlook for the Western Hemisphere, released on May 6 in Montevideo, Uruguay, the IMF said that external risks to the near-term outlook have receded. Policy actions in the euro area and the United States have removed immediate threats to global growth and financial stability, the report said.

That said, in the United States, failure to replace the automatic fiscal spending cuts (“the sequester”) with more backloaded measures before the start of the next fiscal year (in October) would affect growth in late 2013 and beyond.

Lower U.S. growth would have a negative impact on the region, particularly in Mexico and Central America, where links through trade and remittances are the strongest.

Mounting Risks

According to the report, medium-term risks for Latin America remain tilted to the downside. The key risk is a reversal of the favorable tailwinds of easy financing conditions and strong commodity prices that have prevailed since 2010.

The region would be particularly affected if a sharp slowdown in China or other key economies triggers a drop in commodity prices.

Another risk is that lack of progress in addressing the medium-term fiscal challenges in key advanced economies leads to a sharp increase in sovereign and corporate risk premiums, with negative impact on global growth.

Domestically, the risk of a deterioration of external and financial sector balance sheets has increased in some countries, the report said.

Current account balances have weakened in recent years, and asset prices are on the rise. Credit growth has moderated, but remains high in a number of countries.

Responding to Risks

The report reaffirmed its earlier message that countries in the region should take advantage of the current favorable economic conditions to build a strong foundation for sustained growth in the future. Policy priorities include building stronger fiscal buffers, improving policy frameworks, and pressing ahead with structural reforms to increase productivity and potential growth.

Growth in the financially-integrated economies in 2013 is projected at about 4¼ percent. For these countries, the IMF pointed out that the key policy priorities are to strengthen public finances and protect financial sector stability. Stronger public balance sheets would help ease pressure on capacity constraints and arrest the widening of current account deficits.

Growth in the other commodity exporters is expected to increase to 4.6 percent in 2013, from 3.3 percent in 2012. However, in the large energy exporters (Bolivia, Ecuador, and Venezuela), growth is projected to moderate. The IMF said these countries would benefit from saving a much larger share of their commodity revenues.

Average growth in Central America is expected to remain close to potential in 2013. Looking ahead, the report said that gradual tightening of fiscal policy in these countries would be necessary to reduce fiscal and external imbalances and ensure debt sustainability.

In much of the Caribbean, high debt and weak competitiveness will continue to constrain growth. These economies are projected to grow by about 1¼ percent in 2013 (from ½ percent in 2012), as external demand strengthens gradually. The key challenge for these countries remain broadly unchanged—reducing high public debt, containing external imbalances, and reducing financial sector vulnerabilities.

The May 2013 Regional Economic Outlook features three analytical chapters dealing with the challenges of sustaining growth and strengthening balance sheets. Specifically, the chapters assess the region’s growth potential, the impact of changes in external conditions on public and external debt dynamics, and the use of the windfall from the recent terms-of-trade boom.


CFI.co Meets Didelou Falobi

[caption id="attachment_4149" align="alignright" width="207"] Engr. Didelou Falobi, FNSE, MIoD, Managing Director of Kresta Laurel Limited, Nigeria[/caption]

Dideolu Falobi, a certified engineer, graduated from the University of Lagos in 1987. He started his career as a Design and Supervision Engineer (1987-89) and later Junior Partner (1992-1996) with Edison Group & Partners, a foremost Electrical power engineering consultancy firm. In these capacities, he was involved in several rural electrification design projects like Local Government Headquarters Electrification scheme (Nationwide, 1987/88), Electrification of 92 towns and villages in Ogun State, Nigeria under DFFRI in 1989, Electrification of 151 towns/villages in Oyo State under its Rural Electrification Scheme in 1992/1993.

In 1996, he carried out a comprehensive Redesign of the Power Generation, Transmission and Distribution Systems in the Greater Banjul Area of The Gambia.

He was also the Assistant Marketing Manager of H.F.SCHROEDER (W.A.) Limited and pioneer Project Manager of Kresta Laurel Limited between 1989 and 1992. In these companies, he was directly responsible for the Lift and Crane Departments and superintended the execution of several Lift and Crane Installation Projects all over the country.

Dideolu joined Lordmart Nigeria Limited in 1996 as the Head of the first Generator Assembly Plant in Black Africa with a capacity for the assembly of 120 generators per month with the capacities being between 27KVA and 1500KVA. In Lordmart Nigeria Limited, he was also involved in the Sales, Assembly, Marketing and Repairs of Massey Ferguson Tractors. He was appointed the Head of the Abuja Branch of the company in 2001.

Engr. Dideolu Falobi assumed duties as the Managing Director of Kresta Laurel Limited in 2005 with the mandate to carry out a comprehensive restructuring of the company.

Engr. Falobi took on the challenge with gusto and went on to comprehensively re-organise the company such that today, the company is the leading wholly indigenous company in the fields of elevators, escalators, Overhead Travelling Cranes and Hoists, Industrial UPS and Industrial and Hangar doors.

A lot of major projects  have been executed under his watch since 2005 with the client list including but not limited to Shell Petroleum, UBA Plc, Central Bank of Nigeria, The Silverbird Group, Julius Berger Plc, Bank of Industry and several State and Federal Ministries and Parastatals.

In recent times, the efforts of Engr. Falobi and his team have been rewarded with major awards and recognition including the 2010 Corporate Merit Award by the Institution of Mechanical Engineering Division of the Nigerian Society of Engineers and the 2010 African Order of Merit in Elevators, Escalators and Cranes among others.

Two of his notable publications are

“Design of Elevators and Escalators” which was presented to the National Conference of the Nigerian Society of Engineers held in Calabar, Nigeria in December 2011; as well as

A Publication titled “The Industrialisation of Ijesaland” which was presented to the World Conference of the Ijesas held in Houston, Texas in the USA in November 2011.

Engr. Dideolu Falobi, a certified ISO 9000 Auditor, is a fellow of the Nigerian Society of Engineers and a member of the Institute of Directors (IOD), the Lagos Country Club and the Ijesa Sports Club among others.

A Brief Profile of Kresta Laurel Limited

Kresta Laurel Limited, incorporated in 1984, has become one of the most respected indigenous Engineering Companies in the field of Electro Mechanical Engineering. KLL is the authorized representative (sole) of some of the most respected brands in Europe such as KONE Elevators of Finland, DEMAG Cranes and Components of Germany, Power Source Generators of UK, AEC INTERNATIONAL SRL of Italy and FRONIUS of Austria.

The Company employs over 200 Nigerians and Expatriates. The head office is in Lagos, the commercial capital of Nigeria, with Branches in Abuja, Port Harcourt, Kaduna and Ibadan. Kresta Laurel have as our clients almost all the major construction companies in Nigeria, banks, oil producing companies and various other corporate giants in the private and public sectors of the economy. The Company’s Website is www.krestalaurel.com


MENA City Lawyers - MCL: Winners in Lebanon

MCL is an innovative, Pan-Arab Law Firm crossing jurisdictional boundaries and challenging Middle Eastern norms by developing the first professional network of law firms in the Middle East and North Africa (MENA) region.

Each client of MCL receives incomparable local knowledge and strategic counselling based on international models. Our goal is to be the best in our field by continuously updating our international knowledge, while staying true to our roots and maintaining our distinctive local character

MCL has unparalleled and world-renowned global presence and exposure, having received numerous international awards and holding affiliation with a selection of key international organizations.

MCL’s distinguished reputation for exceptional legal service has received consistent, esteemed recognition from numerous International award bodies, and our commitment to becoming the most prominent Pan-Arab International law firm has solidified our reputation for excellence across the world.

MCL engages the most promising and successful lawyers to join our ever-expanding practice. Our young, talented lawyers work alongside some of the most accomplished Senior Partners in the region; Partners who have decades of experience in their respective field. Employing both local and internationally educated and qualified lawyers, MCL has an incredibly diverse team. Our lawyers, having graduated from leading universities, both here in Lebanon and internationally, offer specialized knowledge, skills and world-class experience.

MCL runs an innovative International Associate program, the first of its kind in our region, whereby we invite candidature from British and Irish lawyers to work alongside our local lawyers in an intensive program in our Beirut office. Only the most accomplished individuals from top-tiered law schools are selected ensuring uniform excellence across our firm’s recruitment.

“MCL has unparalleled and world-renowned global presence and exposure, having received numerous international awards and holding affiliation with a selection of key international organizations.”

MCL lawyers understand the commercial realities of the region and are capable of handling our clients’ needs in their entirety in an expedient, reliable and professional manner. Moreover, we build long lasting relationships with our clients and are committed to supporting them at all times as they adjust to changes in their respective markets, as well as to changes in the regulatory landscape.

MCL Lebanon is a full-service, multi-practice firm offering our clients legal expertise in a wide range of corporate and commercial legal issues. We work with a range of clients stemming from Governmental entities, to large multi-national Corporations, to more locally based businesses and individual clients. Our lawyers always ensure to provide the most distinguished legal services, no matter the scale or size of the transaction. Our ability to provide a truly Pan-Arab service keeps MCL Lebanon ahead of our competitors, and ensuring our position as the premier Middle East and North African regional law firm.

MCL Lebanon places huge emphasis and importance on our corporate responsibility, and upholds a commitment to provide a considerable amount of pro bono work each and every year for various projects being implemented across our region.

Our adoption of our own Code of Ethics, Internal Rules and Regulations for lawyers and stringent By-laws have assured that MCL Lebanon stands high above our competitor law firms in such regards, providing a commitment to such issues which remains completely uncommon across our region.

MCL continues to seek new business development opportunities across our network, and is constantly working to secure further partnerships across the MENA region, and the rest of the world, in order to firmly found our practice with an ability to provide a truly global service with local values and expertise.


CFI.co Meets Jean-Marc Delpon de Vaux

[caption id="attachment_4158" align="alignright" width="315"] Jean-Marc Delpon de Vaux, Olayan Financing Company[/caption]

Following the judging panel’s selection of Olayan Financing Company (OFC) as the recipient of the 2012 Corporate Leadership Award, CFI.co spoke to Jean-Marc Delpon de Vaux, President - Consumer Products of OFC.

OFC is the Saudi arm of The Olayan Group. According to Delpon de Vaux, The Olayan Group was shaped by the business principles embraced by its founder, Suliman Olayan, when he first started doing business in the 1940s, the core of those principles being good corporate governance, impeccable business ethics and personal and professional integrity. He observed that soon after joining Olayan he came to realise that these were not just words on paper, but principles that all at Olayan live each day and on which the Olayan family places great value. Today, Olayan is a group of more than 40 companies operating in eight countries with more than 15,000 employees. In part, he attributes the strength of Olayan to the fact that members of the Olayan family - the children of Suliman Olayan – remain involved in the business. Much of the success of OFC can be attributed to the direct involvement of Khalid Olayan, as Chairman, and Lubna Olayan, as Deputy-Chairman and CEO, especially their strong desire to maintain the principles, management style, discipline and relationships established by their father as they grow the business and establish new relationships.

Olayan is firmly of the view that being successful does not just mean growing its business and increasing its profits. It also means caring about its employees, its customers, its business partners and the world in which we all live.

‘We enjoy a strong business base because of this heritage which also includes long-standing and highly effective business partnerships,’ Delpon de Vaux pointed out.

In its early days, the Kingdom of Saudi Arabia presented a real opportunity to foreign companies, but it was at the same time a new, developing and often bewildering territory, for those international companies. In Olayan, they found a reliable local partner with considerable keen local knowledge, financial strength, an ethical approach to business and an understanding of how business was done abroad.

The division president explained that the Olayan view of partnership is to connect with companies with shared values and then look to how best to achieve their joint long term objectives. ‘This implies that when our shared business evolves we must be ready to adapt to new situations and be open to all opportunities. As partners, we do not simply sit back and rely on our partners to make things happen, we engage and often sit on the boards of companies in which we invest. And we are able to uniquely combine international expertise and experience with local knowledge and standing’

Olayan is known to operate in sectors and industries where its knowledge and expertise contribute to its partnerships and the companies that they create. As the local partner to many industry leaders from around the world, Olayan believes that it must help unleash the skills and abilities of its partners and to enable them to reach their full potential in the market as fast as possible by providing insight, guidance, support and advice as and when needed. These are some of the elements that have helped Olayan build long term relationships that in many cases have been in place for more than 50 years.

In several cases, Olayan has helped its partners bring their own CSR programmes to the local market to address local issues, including unemployment amongst both males and females. In fact, the CFI.co judging panel were especially impressed with Lubna Olayan’s support of women in the workplace.

According to Delpon de Vaux, ‘Mrs Olayan and the Group try to make a difference. In 2008, OFC established a specialised department dedicated to the recruitment, training and retention of young Saudi males and females. Recognising that there is clearly under-utilisation of women in the country, Olayan is working hard to ensure that we have an increasing proportion of female employees throughout the business and in senior management roles as well. We monitor the situation on a monthly basis. For Mrs Olayan this is a key performance indicator, just like any other.’

Olayan makes an on-going effort to maintain a focused CSR programme. Somewhat surprisingly given its stature, Olayan prefers maintaining a relatively low profile. It is a good corporate citizen with an exemplary code of conduct and the Company plays its full part in the Kingdom without drawing attention to its many generous acts carried out by The Suliman S. Olayan Foundation. The Foundation is managed by a committee of volunteers from within The Olayan Group.

Delpon de Vaux explained that apart from their focus and leadership in providing opportunities for young Saudis, especially women, Olayan also focuses on its environmental footprint - ‘Whatever we do in the Group, there is proper regard for environmental impact. We are managing this and making good progress.’

Keying off the strength of the Saudi economy, Delpon de Vaux reports that business is good at Olayan: ‘We are very happy with our results. Non-oil GDP growth in the country is around 7 per cent but we are out-performing this significantly and delighted with our levels of profitability. The economy may slow a little in 2013 but we are still expecting robust growth at Olayan.’

Longer term, Delpon de Vaux expects OFC to continue pushing boundaries beyond the GCC. The business will seek diversification, but always focus on the more promising sectors - ‘We are very strong at home, in the Gulf and will be broadening our reach in the MENA countries especially Egypt, Morocco and Tunisia. The Group is, of course, involved in the wider world economy through its investment programme.’

Jean-Marc Delpon de Vaux joined Olayan after three years as the head of SABMiller’s India where he boosted market share by five per cent. A Unilever veteran, his appointments included chairman and CEO of the Pakistan business.

Delpon de Vaux is one of two Olayan Financing Company presidents. He heads up all consumer activities and shares other corporate responsibilities with Jonathan Franklin who oversees the Olayan industrial businesses and investments.


Vladimir Putin Talks About BRICS

BRICS' relatively new phenomenon attracts increased global attention due to the optimistic predictions about its development, especially against the backdrop of global crisis developments in the world economy. What is BRICS' immediate and long-term significance for Russia? Is such a format practical for the development of relations among these countries?

- There are a number of long-term factors working on BRICS' success. For the last two decades the economies of Brazil, Russia, India, China and South Africa have been in the lead of global economic growth. Thus, in 2012, the average GDP growth rate in the group amounted to 4%, while for the G7 this index was estimated at 0.7%. In addition, GDP of the BRICS countries derived from the national currency purchasing power parity is currently over 27% of the global GDP and its share continues to increase.

BRICS is a key element of the emerging multipolar world. The Group of Five has repeatedly affirmed its commitment to the fundamental principles of the international law and contributed to strengthening the United Nations central role. Our countries do not accept power politics or violation of other countries' sovereignty. We share approaches to the pressing international issues, including the Syrian crisis, the situation around Iran, and Middle East settlement.

The BRICS’ credibility and influence in the world is translated into its growing contribution to the efforts to stimulate global development. This important matter will be specifically addressed at the BRICS Leaders – Africa Dialogue Forum to be held on the sidelines of the Durban summit.

BRICS members advocate the creation of a more balanced and just system of global economic relations. The emerging markets are interested in long-term sustainable economic growth worldwide and reforms of the financial and economic architecture to make it more efficient. This is reflected in last year's joint decision to contribute $75 billion to the IMF lending programme, thus increasing the participation of the fastest growing economies in the Fund's authorised capital.

Russia, as the initiator of the BRICS format and chair at its first summit in Yekaterinburg in 2009, sees the work within this group among its foreign policy priorities. This year, I have approved the Concept of the Russian Federation's Participation in the BRICS group, which sets forth strategic goals we seek to achieve through interaction with our partners from Brazil, China, India and South Africa.

Such cooperation in international affairs, trade, capital exchange and humanitarian sphere facilitates the creation of the most favourable environment for further growth of Russian economy, improvement of its investment climate, quality of life and well-being of our citizens. Our membership in this association helps foster privileged bilateral relations with the BRICS nations based on the principles of good neighbourliness and mutually beneficial cooperation. We believe it crucial to increase Russia's linguistic, cultural and information presence in the BRICS member nations, as well as expand educational exchanges and personal contact.

- What are the group’s short-term objectives and how do you see strategic directions for BRICS' economic development?

- BRICS identifies what is to be done based on action plans adopted at the group's annual summits. Last year's Delhi Action Plan outlined 17 areas of cooperation, including meetings of Foreign Ministers on the sidelines of the UN General Assembly session, joint meetings of Finance Ministers and Central Bank Governors on the sidelines of the G20, World Bank and International Monetary Fund meetings, as well as contacts between other agencies.

We are currently negotiating a new plan we will discuss at the meeting in Durban. I am confident that it will help us develop a closer partnership. We expect that we will be able to closer coordinate our approaches to key issues on the agenda of the forthcoming G20 summit in St Petersburg, increase our cooperation in the fight against drug trafficking and production, and our efforts to counter terrorist, criminal and military threats in cyberspace.

It is of great importance for Russia to increase its trade and investment cooperation with its BRICS partners and launch new multilateral business projects involving our nations’ business communities. In Durban we intend to announce the formal establishment of the BRICS Business Council designed to support that activity. The summit will be preceded by the BRICS Business Forum, which will bring together more than 900 business community representatives from our countries.

- The potential of the BRICS economies brings up not only the question of economic policy coordination but also that of close geopolitical interaction. What is BRICS' geopolitical role and mission in today's world? Does it go beyond the purely economic agenda and should the BRICS countries accept greater responsibility for geopolitical processes? What is their policy with regard to the rest of the world, including its major actors such as the United States, the European Union, Japan… What future do you see for this association in this regard?

- First and foremost, the BRICS countries seek to help the world economy achieve stable and self-sustaining growth and reform the international financial and economic architecture. Our major task is to find ways to accelerate global development, encourage flows of capital in real economy and increase employment. This is particularly important in the context of poor global economic growth rates and unacceptably high unemployment. Although this is mainly true of western countries, the BRICS states are also negatively affected; export markets are shrinking, global finance lacks stability, and our own economic growth is slowing down.

At the same time, we invite our partners to gradually transform BRICS from a dialogue forum that coordinates approaches to a limited number of issues into a full-scale strategic cooperation mechanism that will allow us to look for solutions to key issues of global politics together.

The BRICS countries traditionally voice similar approaches to the settlement of all international conflicts through political and diplomatic means. For the Durban summit, we are working on a joint declaration setting forth our fundamental approaches to pressing international issues, i.e. crisis in Syria, Afghanistan, Iran and the Middle East.

We do not view BRICS as a geopolitical competitor to western countries or their organisations — on the contrary, we are open to discussion with any country or organisation that is willing to do so within the framework of the common multipolar world order.

- Russia and China are important strategic and historic partners. How do you see the significance of such partnership not only for the development of the two countries, but also for the entire system of international relations and the world economy?

- Russia and China are two influential members of the international community, they are permanent members of the UN Security Council, and they are among the world’s largest economies. That is why the strategic partnership between us is of great importance on both a bilateral and global scale.

Today the Russian-Chinese relations are on the rise, they are the best in their centuries-long history. They are characterised by a high degree of mutual trust, respect for each other's interests, support in vital issues, they are a true partnership and are genuinely comprehensive.

President of the People’s Republic of China Xi Jinping is currently on a state visit to Russia. The fact that the new Chinese leader makes his first foreign trip to our country confirms the special nature of strategic partnership between Russia and China.

In the last five years only, the volume of bilateral trade has more than doubled. China has firmly taken the first place among our trading partners. In 2012 the Russian-Chinese trade turnover increased by 5.2% to constitute $87.5 billion (in 2007 the figure was $40 billion).

The commonality of our approaches to fundamental issues of world order and key international problems has become an important stabilising factor in world politics. Within the framework of the UN, the Group of Twenty, BRICS, the SCO, APEC and other multilateral formats, we are working together, helping to shape a new, more just world order, ensure peace and security, defend basic principles of international law. That is our common contribution to strengthening sustainable global development.

Russia and China show an example of a balanced and pragmatic approach to solving the most critical issues, such as the situation in the Middle East and North Africa, nuclear problem on the Korean Peninsula, situation around Iran’s nuclear program.

- Before the BRICS summit your schedule features a working visit to South Africa. What do you expect from the upcoming negotiations with South African party? Will this visit give impetus to the development of bilateral relations?

- Russia and South Africa have old ties of friendship and mutual respect. Multifaceted cooperation is developing between our countries, with constructive political dialogue established at the highest level, between governments, ministries and agencies. Interparliamentary, interregional, business and humanitarian contacts are consistently expanding.

During the visit to South Africa we certainly hope to give new impetus to our bilateral relations. The adoption of the Declaration on Strategic Partnership between Russia and South Africa is being prepared; it will confirm the new quality of our relations, determine key areas of joint work in the future. We plan to sign a number of important intergovernmental and interagency documents in Durban: the declaration on strategic partnership, the agreements on cooperation in the energy sector, agriculture, etc.

Trade and economic cooperation will be in the focus of our attention during negotiations. Last year the volume of trade between Russia and South Africa grew by 66% and reached $964 million (in 2011 the figure was $580 million). Big Russian businesses, including such companies as Renova, Norilsk Nickel, Evraz Group, Basic Element, Severstal, Renaissance Capital and Vnesheconombank are actively entering the South African market, they are interested in further expanding their presence in South Africa.

Russia and South Africa can significantly, by many times, increase the volume of bilateral trade and investments, the number of mutually beneficial projects in the mining sector, power industry (including nuclear power), space exploration, military and technical sphere.

We consider it important to develop cooperation in the field of education and culture by strengthening direct ties between universities, promoting Russian language teaching in South African educational institutions, organising film festivals and tours by leading artists, and exchanging museum exhibitions.

We will discuss practical steps to achieve these goals with President Jacob Zuma.


SABIC’s Collaboration with MIT

The Saudi Basic Industries Corporation (SABIC) has signed an initial agreement with Massachusetts Institute of Technology (MIT) in the United States, a world leader in scientific research. The agreement paves the way for SABIC and MIT to work together to develop new practical innovation for the company’s solutions and processes in order to meet important global needs from developing unconventional feedstock to innovating new material solutions for challenging applications.

The agreement was signed by Ernesto Occhiello, SABIC Executive Vice President, Technology & Innovation, and Professor Klavs F. Jenssen, Head of Chemical Engineering, at MIT in Boston in April.

“This agreement marks a starting point for collaboration between SABIC and MIT. SABIC will be able to and tap into MIT’s multidisciplinary research capabilities to achieve research excellence,” said Occhiello. “Along with focusing on the important areas of developing unconventional feedstock and innovative new material solutions, SABIC will also focus on innovating in multiple parts of the energy equation,” he said.

This future collaboration will also allow SABIC researchers to work with world class teams of scientists at MIT in the respective joint research areas.

The research relationship with MIT is just one of many SABIC has already established around the world to bring world-class expertise to the company and its customers. SABIC currently has research relationships with Cambridge University in the UK, the Dalian Institute of Chemical Physics in China, ETH Zurich in Switzerland, the National Research Council in Italy and the Fraunhofer-Gesellschaft in Germany.


Child Bride Hero Nujood Ali

[caption id="attachment_3918" align="alignright" width="149"] Nujood Ali[/caption]

Divorce can be a traumatic experience – but for a ten year old?

Nujood Ali, now a fifteen year old activist opposing forced marriage, obtained a divorce five years ago breaking with tribal tradition in the Yemen. The law allows marriage at any age but forbids sexual relations until an undefined age of suitability. Ali’s marriage broke this law because she was raped. Hers was the first such case to be heard in the Yemen.

This young girl wrote her memoirs to encourage other potential child brides in the country. It seems that her campaign will come close to home as a dowry for her younger sister Haifa has been agreed and she is now engaged to a stranger.

“A divorce party - that's really better than a wedding party!”

A further concern is that their father may have used book royalties meant to finance Nujood’s education for quite different purposes.


Samir Barua and 36 Years at IIM-A

[caption id="attachment_3924" align="alignright" width="176"] Prof. Samir Barua[/caption]

Prof. Samir Barua's tenure as Director of Indian Institute of Management, Ahmedabad will have ended by the time you read this piece. Under his leadership, IIM-A has firmly established itself as one of the world’s leading Business Schools. Prof Barua is rare among heads of business schools in that his whole career has been spent at IIM-A (having signed up for his PhD in 1976 he never left). His deep understanding of the institution has paid dividends over the past five years of Barua's leadership. The increasing international recognition is due in no small part to his management of the school’s faculty. Never an easy task, Prof. Barua has quietly moulded the faculty and IIM-A is increasingly seen as an important centre for thought leadership. Research is blossoming with its inevitable feedback into teaching. Prof. Barua helped build on almost 50 years of strong foundations at IIM-A ewhen he took over the reigns in 2007 and he paved the way for the school to be consistently ranked among the world's leading institutions for business and management.


Dieck-Assad, Academic at the Heart of Government

[caption id="attachment_3933" align="alignright" width="196"] Maria de Lourdes Dieck-Assad[/caption]

Dr. Maria de Lourdes Dieck-Assad is the rector of EGADE, one of Latin America's leading business schools. It is always worth taking note when business school leaders spend a significant part of their career outside academia. In Dr. Dieck-Assad's case her experience goes to the heart of Mexican government as she was an ambassador and also served as chief of the Mexican Mission to the European Union. Her understanding of cross-sector relationships between business, government and academia is helping  drive the school forward. Under her guidance EGADE is becoming recognised not just as a leading Latin American school but as a true centre of excellence providing Mexican and international students with a real understanding of global business. Of particular interest is the work being done on project adaptation and how it can help mitigate risk - and more importantly, the effort put into creating real world solutions and spreading the knowledge to stakeholders in particular those running SMEs.


Betsy Kawamura and Empowering NK Refugees

Human rights activist Betsy Kawamura, founder and director of Womer4NonViolence, works relentlessly to provide a platform for survivors of gender-based violence and others who are unable to find a voice in the wilderness of despair. She draws on insights from the trauma of her early life to bring hope and opportunity to other victims.

Betsy was twelve years old and living in Okinawa when she was befriended by a middle-aged Caucasian man whom she considered to be an ‘authority figure’. This man sexually abused her on several occasions and spoke openly and without remorse about his violence to young girls including his own daughter. These encounters came to an end only when her family moved home but the associated pain and suffering was to continue. This resulted in a major psychotic breakdown and the loss of her ability to read for a period in adult life despite having been one of the smartest in her class and earning an MBA at an American university. Betsy became homeless and lived on the streets. It was at this desperately low point that she realised that trauma survivors need strong political and socio-economical support to prevail over past miseries.

"My anguish ended when my family left Okinawa after this man had paid me $5 during our last encounter for my ‘services’."

Much later, when Betsy had had resumed her professional career, she came to know in detail of the suffering of some women and children in North Korea and the difficulties they face as refugees. She has devoted much of the past dozen years of her life to helping these survivors and was instrumental in the making of a short film ‘Under a Different Sky’ which tells the story of a North Korean woman now living in the north of England who was a victim of human trafficking.

Betsy doesn’t rest for one moment and is now working on her ‘Voice of Free North Korea’ project which seeks to empower 500 refugees living in Britain by training them in modern communication skills. We have no doubt that Betsy will open important channels for these survivors – and our hope in that some of these voices will be as eloquent as her own.


Nigeria’s Economy Grows by 6.6%

[caption id="attachment_3960" align="alignright" width="300"] Lagos, Nigeria[/caption]

At a time when Europe’s growth is stalling and in recession, Nigeria’s economic output is continuing to motor away. However, this growth comes at the cost of inflation which is also running high at 9% per annum and for food even higher at 11%.

Abuja reports that the Nigerian economy, measured by the Real Gross Domestic Product (GDP), grew by 6.56 per cent in the first quarter of 2013 as against 6.34 per cent in the corresponding quarter of 2012.

Dr Yemi Kale, the Statistician-General of the Federation, said in a statement in Abuja on Thursday that the Consumer Price Index (CPI) rose by 9.1 per cent in April as against 8.6 per cent recorded in March 2013.

“This is the fourth consecutive month of single digit year-on-year rates being recorded, and the first time this has occurred since the movement to the new CPI base period,’’ Kale said.

The statement said that relative to March, the rise in the headline index could be primarily attributed to higher price levels of food products due to the effect of declining inventories.

“At this time in the planting season, what are sold are foods which were harvested late last year and the limited supplies of these with a relatively stable demand, pushes prices higher.

“As a result of substantially higher price levels last year, the implications are that the year-on-year changes for this year are likely to be lower,’’ it said.

The statement said the National Bureau of statistics observed generally slower rises in monthly prices since 2013.

“This may be connected to more prudent fiscal measures together with aggressive stance of monetary policy.’’

It said that the largest contributors to the increase in the food index in April were bread and cereals, potatoes, yams and other tubers and vegetables.

The statement said that the average annual rate of rise of the food index for the 12-month period ending April 2013 was 10.8 per cent when compared with the same period in 2012.


Oil Producers with Success in Nigeria

London Stock Exchange listed oil and gas producer, Afren, reports a strong start to the year driven by a year-on-year increase of 14% in net production principally from the Ebok and Okoro fields, offshore Nigeria.

The group says it remains on-track to deliver full year net working interest production of between 40,000 to 47,000 barrels of oil equivalent per day.

Chief executive Osman Shahenshah said: "Afren continues to deliver strong production from our greenfield developments offshore Nigeria.

"Following the successful start to our 2013 E&A programme on Okwok, offshore Nigeria, and Simrit in the Kurdistan region of Iraq, we are currently drilling the West African Transform margin on OPL310 offshore Nigeria.

"The group remains in a strong financial position supported by a growing production base, to optimally explore, appraise and develop our high quality portfolio and continue to create significant value for our shareholders."

Also, LSE listed, Heritage Oil, reports a transformational increase in production and revenue in the first quarter following the acquisition of an interest in the world class OML 30 licence in Nigeria.

Revenues rose to $236.2m - up from $2.3m last time - of which $234.5m was from the interest in Shoreline Natural Resources Limited, Nigeria, and $1.7m was from the interest in the Zapadno Chumpasskoye Field, Russia.

Production for the first quarter, net to Heritage, averaged 7,373 barrels of oil per day compared with 605 bopd a year ago.

[caption id="attachment_3953" align="aligncenter" width="300"] Nigerian oil workers[/caption]

Chief executive Tony Buckingham said: "Production from OML 30 is increasing back to previous levels and we expect to see gross production at 35,000 bopd within a month. Further substantial gains are anticipated in the second half of this year through optimising current facilities and improving the gas lift system.

"Our acquisition of an interest in OML 30 remains the largest upstream onshore asset transaction in sub-Saharan Africa on a 2P basis and positions Shoreline as one of the largest indigenous oil companies in Nigeria. Activity across the exploration portfolio has also increased with active work programmes in Tanzania and Papua New Guinea."


Expo 2020: Selecting the Host City

Brazil, Russia, Thailand, Turkey, and the United Arab Emirates have all officially bid to host Expo 2020 by the 02 November 2011 deadline. A decision will be made the the BIE General Assembly in 2013.

Expo 2020 will likely represent a first no matter which city wins. If Ayutthaya wins the bid, it would be Thailand's first world's fair. If Dubai or Izmir win, it will be the first Middle Eastern expo. Expo 2020 will be the first Russian world's fair if Ekaterinburg wins. A Sao Paulo victory would make it the first world's fair in South America and Latin America as well as the first in the Western Hemisphere in 34 years and the first in the Southern Hemisphere in 32 years.

[poll id="2"]

This informal survey has been conducted with CFI.co readers from May 20, 2013. The poll’s confidence interval is +/- 3% accuracy.


Prof Kearney Goes for Triple Crown

[caption id="attachment_4043" align="alignright" width="280"] Prof Colm Kearney[/caption]

Prof. Colm Kearney is currently dean of the Faculty of Business and Economics at Monash University. With many Asian students now looking to Australia for their higher business education as an alternative to US or European schools, Prof.  Kearney's international experience and business and finance expertise further enhance Monash's reputation as an important centre of academic excellence. The Monash objective is triple crown accreditation over the next few years and the engagement of  strong new faculty. Prof. Kearney's academic reputation, undoubted leadership skills and personal experience of accreditation matters are going to help push Monash to the elite level of business schools. Prof. Kearney is one a generation of deans whose mobility and broad experience is part of the global convergence of education.