Breakthroughs - Credit Suisse · 2019-01-29 · Hilda Mpagama TAN 2325 - Memory Mutsakani ZIM 2326...

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The Credit Suisse Magazine Since 1895 Issue 1 Feb./March 2009International Edition

First Name Last Name Country - -Furaha Chanzi TAN 2193 -Bonani Dube ZIM 2194 -Precious Kapambwe ZAM 2195 -Jubilee Garikai ZIM 2196 -Advey Mgaya TAN 2197 -Kasoma Chama ZAM 2198 -Margaret Kangwa ZAM 2199 -Faith Sniff ZIM 2200 -Deophister Chiluba ZAM 2201 -Nalukui Libaka ZAM 2202 -Mohammed Hamdia GHA 2203 -Naomi Mwila ZAM 2204 -Pumulo Ikwendo ZAM 2205 -Florence Mwansa ZAM 2206 -Mildred Machokoto ZIM 2207 -Restuta Njelekela TAN 2208 -Mubita Sitali ZAM 2209 -Josephine Chikanyira ZIM 2210 -Nemakando Kapokola ZAM 2211 -Evans Tete ZIM 2212 -Rafia Sulemana GHA 2213 -Gillian Chanda ZAM 2214 -

Isabela Ngongo TAN 2275 -Nevisy Lihaya TAN 2276 -Umba Kaputungu ZAM 2277 -Sara Yuma ZAM 2278 -Tamari Chuma ZIM 2279 -Chola Mwenso ZAM 2280 -Doreen Chikumba ZAM 2281 -Wesega Zhou ZIM 2282 -Pozeni Mpalanzi TAN 2283 -Tinago Jane ZIM 2284 -Nayunda Pumulo ZAM 2285 -Sharon Ngandu ZAM 2286 -Vwanganji Nyimbiri ZAM 2287 -Mumuni Maria GHA 2288 -Magreen Mwelwa ZAM 2289 -Beauty Kalunga ZAM 2290 -Phenny Nalungwe ZAM 2291 -Naomi Namwinga ZAM 2292 -Bridget Kasasa ZAM 2293 -Limbo Kashibi ZAM 2294 -Musawenkosi Ncube ZIM 2295 -Sara Kingarata TAN 2296 -Nanalelwa Nosiku ZAM 2297 -Hamida Kambalage TAN 2298 -Rabecca Matambiso ZAM 2299 -Nomagugu Mpofu ZIM 2300 -Salamatu Tia GHA 2301 -Olipa Namwale ZAM 2302 -Zela Chimukwe ZAM 2303 -Jenipher Kasongo ZAM 2304 -Frola Samia TAN 2305 -Fungai Mhlangeni ZIM 2306 -Noris Chungu ZAM 2307 -Cathrine Dziva ZIM 2308 -Feddy Chonde ZAM 2309 -Imanga Nganga ZAM 2310 -Brendah Mwape ZAM 2311 -Sikumbeleti Mubulukwa ZAM 2312 -Astridah Mulenga ZAM 2313 -Cindy Chaba ZAM 2314 -Navone Livinga TAN 2315 -Hlengiwe Maphosa ZIM 2316 -Naomi Msunza TAN 2317 -Naisha Lukosi TAN 2318 -Inonge Mukela ZAM 2319 -Munjanja Cathrine ZIM 2320 -Lutty Nankonde ZAM 2321 -Angeline Zhou ZIM 2322 -Namwamba Sililo ZAM 2323 -Mirriam Mando ZAM 2324 -Hilda Mpagama TAN 2325 -Memory Mutsakani ZIM 2326 -Sibongile Mushuku ZIM 2327 -Bwalya Mwenya ZAM 2328 -Ntombezihle Mpofu ZIM 2329 -Mercy Mulenga ZAM 2330 -Mwila Chinga ZAM 2331 -Vera Nakamba ZAM 2332 -Currency Chondwa ZAM 2333 -Mwalye Mwense ZAM 2334 -Prudence Muyunda ZAM 2335 -Tendai Muchecheti ZIM 2336 -Janet Nakamba ZAM 2337 -Maggie Namonje ZAM 2338 -Airini Sanga TAN 2339 -Romana Mpelembwa TAN 2340 -Nasilele Mwilu ZAM 2341 -Beauty Songiso ZAM 2342 -Lucy Katebe ZAM 2343 -Beatrice Nambeya ZAM 2344 -Namasiku Siyunda ZAM 2345 -Florence Kasongo ZAM 2346 -Ibrahim Sherifatu GHA 2347 -Waab Minloom GHA 2348 -Liwoyo Mushoba ZAM 2349 -Given Mulenga ZAM 2350 -Harren Mukwasa ZAM 2351 -Airini Mlangwa TAN 2352 -Frida Kaduma TAN 2353 -Maureen Namukoko ZAM 2354 -Blessings Ndlovu ZIM 2355 -Grace Kalumbi ZAM 2356 -Cynthia Mumba ZAM 2357 -Nada Lusoko TAN 2358 -Neema Ismail TAN 2359 -Nyadzisai Tanda ZIM 2360 -Linyeta Ngebe ZAM 2361 -Muhau Nambunda ZAM 2362 -Sikuniso Mwenda ZAM 2363 -

Winfrida Msuya TAN 2365 -Moyo Andile ZIM 2366 -Manyando Makumba ZAM 2367 -Hildah Mukuku ZAM 2368 -Liceli Mufanda ZAM 2369 -Faraja Konzi TAN 2370 -Naomi Mumba ZAM 2371 -Saphira Sankwe ZAM 2372 -Lorren Raundi ZIM 2373 -Chiti Mwamba ZAM 2374 -Blantina Mbalase TAN 2375 -Namataa Sitwala ZAM 2376 -Duachi Moazu GHA 2377 -Polite Chidawanyika ZIM 2378 -Rebecca Mhimba TAN 2379 -Eunice Marako ZIM 2380 -Mable Mukombi ZAM 2381 -Lucy Namwinga ZAM 2382 -Bisesa Mwayo ZAM 2383 -Chita Mabuku ZAM 2384 -Majory Namukonde ZAM 2385 -Roseria Musamba ZAM 2386 -Prudence Chibesa ZAM 2387 -

Ndumbazye Ncube ZIM 2447 -Ncube Patricia ZIM 2448 -Fozia Musah GHA 2449 -Mwelwa Manyando ZAM 2450 -Nancy Lengwe ZAM 2451 -Mercy Mlambo ZIM 2452 -Charity Chihando ZIM 2453 -Chikuta Namakau ZAM 2454 -Mitchell Matsikidze ZIM 2455 -Annie Nondo ZAM 2456 -Shyleen Nkosana ZIM 2457 -Sikufele Mebelo ZAM 2458 -Moleen Murambiza ZIM 2459 -Namkando Maimbolwa ZAM 2460 -Margaret Musanta ZAM 2461 -Sisasenkosi Lima ZIM 2462 -Musemo Ranganai ZIM 2463 -Chilufya Kibinda ZAM 2464 -Veronica Kiyeyeu TAN 2465 -Rutendo Gomo ZIM 2466 -Sibusisiwe Nyakurai ZIM 2467 -Rodah Chibale ZAM 2468 -Theodora Kunhe ZIM 2469 -Brilliant Moyo ZIM 2470 -Goretty Kasongo ZAM 2471 -Thelma Bwalya ZAM 2472 -Charity Mubanga ZAM 2473 -Judith Chimfwembe ZAM 2474 -Agness Mwansa ZAM 2475 -Enesia Kulanga TAN 2476 -Alice Machembe ZAM 2477 -Zuhura Mhongole TAN 2478 -Prudence Bwalya ZAM 2479 -Doomaak Jamant GHA 2480 -Pyelina Kasuga TAN 2481 -Sikwanyi Namushi ZAM 2482 -Emeldah Katongo ZAM 2483 -Elizabeth Sikanyika ZAM 2484 -Nipe Mgongolwa TAN 2485 -Sylvia Kalenga ZAM 2486 -Zulhatu Iddrisu GHA 2487 -Sandra Mutamiri ZIM 2488 -Lyness Mukalati ZAM 2489 -Shelter Billy ZIM 2490 -Sandra Mwale ZAM 2491 -Mohammed Mariam GHA 2492 -Anna Sibanda ZIM 2493 -Lidia Nambela ZAM 2494 -Heppines Petter TAN 2495 -Nyambe Nawelwa ZAM 2496 -Melinda Chimfwembe ZAM 2497 -Belita Shampale ZAM 2498 -Chiwisa Sibote ZAM 2500 -Anny Kampamba ZAM 2501 -Joyce Mbiligenda TAN 2502 -Mawere Nyasha ZIM 2503 -Gladys Bwale ZAM 2504 -Precious Mwila ZAM 2505 -Nothando Nyathi ZIM 2506 -Babbra Nyadowa ZIM 2507 -Sharon Kabwe ZAM 2509 -Linda Chitalu ZAM 2510 -Mumba Elizabeth ZAM 2511 -Jane Mwawa ZAM 2512 -Dzidzai Shuro ZIM 2513 -Prexides Mweni ZAM 2514 -Patience Gunyule ZIM 2515 -Martha Mutale ZAM 2516 -Winfridah Chanda ZAM 2517 -Harriet Namukonde ZAM 2518 -elizabeth Ndoro ZIM 2519 -Chola Mandalena ZAM 2520 -Mary Musonda ZAM 2521 -Constance Mubanga ZAM 2522 -Kutemwa Mutonga ZAM 2524 -Mwinji Nachembe ZAM 2525 -Furaha Mbwale TAN 2526 -Twaeni Kiwope TAN 2527 -Dapi Rumbidzai ZIM 2528 -Mwaka Milupi ZAM 2529 -Maria Nyirongo ZAM 2530 -Makore Nyasha ZIM 2531 -Namakau Kwalela ZAM 2532 -Chota Chileya ZAM 2533 -Nokuthaba Moyo ZIM 2534 -Limbo Kapelwa ZAM 2535 -Mildred Chabala ZAM 2536 -Victoria Mulenga ZAM 2537 -Prudence Chisanga ZAM 2538 -

Ruth Chibamba ZAM 2539 -Farida Makela TAN 2540 -Memory Kunda ZAM 2541 -Beauty Muyunda ZAM 2542 -Maria Kalinga TAN 2543 -Caster Chikokere ZIM 2544 -Moshi Kayuwanga TAN 2545 -Zenabu Mahamah GHA 2546 -Nhare Fungai ZIM 2547 -Emmeldah Chisenga ZAM 2548 -Situmbeko Naluca ZAM 2549 -Martha Lyambo TAN 2550 -Pascalina Mwaba ZAM 2551 -Buchedo Munkuli ZIM 2552 -Change Nancy ZIM 2553 -Margret Gunika ZIM 2554 -Tumusa Namatama ZAM 2555 -Alleta Tshuma ZIM 2556 -Mercy Chate ZAM 2557 -Sibanda Acience ZIM 2558 -Ruth Mwila ZAM 2559 -Matau Winnet ZIM 2560 -Hellen Mwila ZAM 2561 -

Sela Kiyeyeu TAN 2621 -Sikujua Kalolo TAN 2622 -Ziena Ngetwa TAN 2623 -Thelma Mupunga ZIM 2624 -Maggie Lusambo ZAM 2625 -Christina Kapinga TAN 2626 -Safia Sulemana GHA 2628 -Joseph Shylet ZIM 2629 -Tshuma Simenkosini ZIM 2630 -Ivy Biiwa GHA 2631 -Kulwa Kamate TAN 2632 -Chikonga Bundambo ZAM 2633 -Vester Matshiya ZIM 2634 -Grace Bwalya ZAM 2635 -Namate Kufanga ZAM 2636 -Fatia Maliga TAN 2637 -Mary Liywali ZAM 2638 -Mayani Chanda ZAM 2639 -Doris Chanda ZAM 2640 -Nontobeko Khumalo ZIM 2641 -Charity Ngirandi ZIM 2642 -Zita Kalaluka ZAM 2643 -Laari Regina GHA 2644 -Mapula Nalukui ZAM 2645 -Linda Nyoni ZIM 2646 -Sophia Mapurisa ZIM 2647 -James Tamari ZIM 2648 -Clara Kafula ZAM 2649 -Patience Tshuma ZIM 2650 -Matildah Mukabo ZAM 2651 -Dainess Chingongo ZAM 2652 -Carol Machokocha ZAM 2653 -Jane Namwizye ZAM 2654 -Praxidence Chanda ZAM 2655 -Maggie Mumba ZAM 2656 -Joyce Wissa TAN 2657 -Regina Filango TAN 2658 -Limpo Kufanga ZAM 2659 -Sikitu Kibadu TAN 2660 -Hellen Chisala ZAM 2661 -Hilda Kitosi TAN 2662 -Hawa Kitambulio TAN 2663 -Mumba Mukube ZAM 2664 -Loveness Siachilamba ZIM 2665 -Shangao Nyemba TAN 2666 -Maeresera Sarah ZIM 2667 -Getrude Mhandu ZIM 2668 -Clemencia Moyo ZIM 2669 -Anzeni Kindole TAN 2670 -Zainabu Kuntelela TAN 2671 -Lucia Nyikadzino ZIM 2672 -Izukanji Nanyinza ZAM 2673 -Njamba Boli ZAM 2674 -Ruth Chilambe ZAM 2675 -Ruth Chisanga ZAM 2676 -Rabi Yakubu GHA 2677 -Mayumbelo Mwabange ZAM 2678 -Mercy Nkamba ZAM 2679 -Falitu Issahaku GHA 2680 -Kelezo Situmbeko ZAM 2681 -Mildred Maliti ZAM 2682 -Grace Sililo ZAM 2683 -Amina Nongwa TAN 2684 -Christine Nakawala ZAM 2685 -Zubeda Kisega TAN 2686 -Doricah Mhanje ZIM 2688 -Maureen Mumba ZAM 2689 -Kabukabu Mbembezi ZAM 2690 -Chola Chalula ZAM 2691 -Previous Nkomo ZIM 2692 -Prisca Chomba ZAM 2693 -Chuma Saala ZAM 2694 -Pamela Mondwa ZAM 2695 -Clementine Kwangiwari ZIM 2696 -Alice Issahaku GHA 2697 -Constance Mwamba ZAM 2698 -Chuma Mubita ZAM 2699 -Huruma Maponda TAN 2700 -Siphesihle Mpofu ZIM 2701 -Petunia Shoko ZIM 2702 -Lilian Namukonda ZAM 2703 -Tatenda Chirawa ZIM 2704 -Chama Cecilia ZAM 2705 -Nyoni Lorraine ZIM 2706 -Ajara Salam GHA 2707 -Winfredah Khuphe ZIM 2708 -Prosper Chisha ZAM 2709 -Florence Tailoka ZAM 2710 -Sara Musongo ZAM 2712 -

Mwanaisha Amanzi TAN 2713 -Rachael Mulenga ZAM 2714 -Lenia Matenga ZIM 2715 -Amuria Napari GHA 2716 -Alice Nachela ZAM 2717 -Sylvia Ngulube ZAM 2718 -Sinikiwe Sibanda ZIM 2719 -Zondani Sibanda ZIM 2720 -Sara Nakawala ZAM 2721 -Trish Dendamera ZIM 2722 -Happiness Mutale ZIM 2723 -Delphister Lushinga ZAM 2724 -Tatu Sanga TAN 2725 -Madzinise Precious ZIM 2726 -Victoria Chanda ZAM 2727 -Mirriam Nawelwa ZAM 2728 -Astridah Chimfwembe ZAM 2729 -Ayisha Iddrisu GHA 2730 -Mwango Mwale ZAM 2731 -Priscilla Mwape ZAM 2732 -Judith Masiwa ZIM 2733 -Jema Kaniala TAN 2734 -Yvonne Kabulo ZAM 2735 -

Mhongole TAN 2736 -Namenzi ZAM 2737 -Nsakanya ZAM 2738 -Nawila ZAM 2739 -Namfukwe ZAM 2740 -Mwila ZAM 2741 -Mahama GHA 2742 -Songiso ZAM 2743 -Muleya ZIM 2744 -Mwelwa ZAM 2745 -Njalang’ona TAN 2746 -Zibengwa ZIM 2747 -Mkini TAN 2748 -Mlambo ZIM 2749 -Kavindi TAN 2750 -Chanda ZAM 2751 -Barichisu GHA 2752 -Petronela ZIM 2753 -

Hyveen Chanda ZAM 2795 -Sophia Machona ZAM 2796 -Harriet Chiluba ZAM 2797 -Patricia Mofya ZAM 2798 -Grace Mukuka ZAM 2799 -Patricia Mwango ZAM 2800 -Mahamadu Rahinatu GHA 2801 -Majana Kabata ZAM 2802 -Gladys Kapela ZAM 2803 -Rudo Kutaika ZIM 2804 -Simonda Mutukwa ZAM 2805 -Josephine Mulenga ZAM 2806 -Beth Ngwale TAN 2807 -Muchindu Mukendami ZAM 2808 -Jawuda Yakubu GHA 2809 -Chaukura Diana ZIM 2810 -Agness Chilufya ZAM 2811 -Faiza Bukari GHA 2812 -Nokuthaba Mpofu ZIM 2813 -Norah Mukuka ZAM 2814 -Yvone Kasonka ZAM 2815 -Chimuma Mbangu ZAM 2816 -Bitian Namiteeb GHA 2817 -Hijira Ngulugulu TAN 2818 -Memory Chiwaya ZAM 2819 -Mwiya Mushanukwa ZAM 2820 -Itai Chinherera ZIM 2821 -Cynthia Liyombe ZAM 2822 -Sabata Kubukwa ZAM 2823 -Faggie Nkhoma ZAM 2824 -Sara Badyogo TAN 2825 -Rumbidzai Chapatarongo ZIM 2826 -Akusia Gariba GHA 2827 -Doreen Mukwasa ZAM 2828 -Imusoka Nalishebo ZAM 2829 -Emmanuella Mubanga ZAM 2830 -Purity Mutale ZAM 2831 -Doris Mayuka ZAM 2832 -Silibaziso Nkomo ZIM 2833 -Kakoma Tumba ZAM 2834 -Fuseina Abukari GHA 2835 -Catherine Kasalwe ZAM 2836 -Kwabena Jenifa GHA 2837 -

Lawrence Gore ZIM 2884 -Angella Masanga ZIM 2885 -Fanista Myungile TAN 2886 -Ester Kaira ZAM 2887 -Martha Musisinyani ZIM 2888 -Rabecca Mutambo ZAM 2889 -Charity Mwembwa ZAM 2890 -Sepiso Musiyebo ZAM 2891 -Jemimah Namumba ZAM 2892 -Sibonginkosi Ncube ZIM 2893 -Adija Issahaku GHA 2894 -Mary Kisawike TAN 2895 -Zikhumba Tendai ZIM 2896 -Shorai Chipazaure ZIM 2897 -Ireen Mwansa ZAM 2898 -Mwangala Imbuwa ZAM 2899 -Gladys Mulenga ZAM 2900 -Njekwa Butale ZAM 2901 -Shuvai Dzinda ZIM 2902 -Aidess Phiri ZAM 2903 -Sibonkinkosi Mpofu ZIM 2904 -Mumba Jubilee ZAM 2905 -Patience Nyandoro ZIM 2906 -Christine Mwewa ZAM 2907 -Mayumbelo Munalula ZAM 2908 -Mercy Satamba ZAM 2909 -Karimu Margret GHA 2910 -Juliet Chanda ZAM 2911 -Rosemary Kaoma ZAM 2912 -Suraya Seidu GHA 2913 -Monica Mvula TAN 2914 -Mercy Mabuku ZAM 2915 -Sikutambua Kasenega TAN 2916 -Shorai Mawire ZIM 2917 -Gift Chipemba ZAM 2918 -Marvis Musonda ZAM 2919 -Cathreen Mbulo ZAM 2920 -Seidu Amina GHA 2921 -Esther Mwansa ZAM 2922 -Agness Chibelushi ZAM 2923 -Given Kalaba ZAM 2924 -

GHA 2925 -ZAM 2926 -ZAM 2927 -ZIM 2929 -ZAM 2930 -ZAM 2931 -ZAM 2932 -ZAM 2933 -TAN 2934 -ZAM 2935 -ZAM 2936 -ZAM 2937 -ZIM 2938 -TAN 2939 -ZIM 2940 -ZIM 2941 -ZIM 2942 -ZAM 2943 -GHA 2944 -ZIM 2945 -ZAM 2946 -ZIM 2947 -

Rodah Kanyika ZAM 2948 -Mwajuma Bwanga TAN 2949 -Josephine Mutale ZAM 2950 -Issaka Sanatu GHA 2951 -Zalia Adam GHA 2952 -Elizabeth Bazange ZIM 2953 -Hildah Mwasinga ZAM 2954 -Yvonne Mudukuti ZIM 2955 -Aneti Myinga TAN 2956 -Queeniva Chanda ZAM 2957 -Iddi Safiatu GHA 2958 -Racheal Namukoko ZAM 2959 -Sarah Nanyinza ZAM 2960 -Patricia Mungole ZAM 2961 -Mundia Kombelwa ZAM 2962 -Ethel Mwansa ZAM 2963 -Dina Nankamba ZAM 2964 -Farida Kiswila TAN 2965 -Samantha Mwariwangu ZIM 2966 -Chabala Kasongo ZAM 2967 -Musah Habida GHA 2968 -Lenia John TAN 2969 -Jesca Kasosa ZIM 2970 -Roiya Mboga TAN 2971 -Yvonne Chitanha ZIM 2972 -Petronella Mpundu ZAM 2973 -Agnes Lupala TAN 2974 -Mary Malama ZAM 2975 -Elinah Mpofu ZIM 2976 -Farai Mombe ZIM 2977 -Mwale Isabel ZAM 2978 -Prisca Chiwila ZAM 2979 -Priscilla Chanda ZAM 2980 -Buhlebenkosi Dube ZIM 2981 -Kafuti Kainga ZAM 2982 -Charity Chokera ZIM 2983 -Chiba Mainess ZIM 2984 -Barbara Lishandu ZAM 2985 -Silume Namebo ZAM 2986 -Bridget Chileshe ZAM 2987 -Salifu Miila GHA 2988 -Sarah Nakazwe ZAM 2989 -Isabel Siniwa ZIM 2990 -Siphatheleni Ngwenya ZIM 2991 -Monde Monde ZAM 2992 -Euphrasia Kunda ZAM 2994 -Ravia Mwansa ZAM 2995 -Norest Bhikoko ZIM 2996 -Fuseini Amira GHA 2997 -mwase Rosemary ZIM 2998 -Liness Nakaonga ZAM 2999 -Theresa Kamanda ZAM 3000 -

Precious Chileshe ZAM 3001 -Namasiku Kumoyo ZAM 3002 -Mary Kampamba ZAM 3003 -Tagarira Tariro ZIM 3004 -Elina Sakatwe ZAM 3005 -Judith Musonda ZAM 3006 -Memory Kasonkomona ZAM 3007 -Patience Bhokisi ZIM 3008 -Kufa Fungai ZIM 3009 -Sisasenkosi Nyathi ZIM 3010 -

Tatu Makenga TAN 3050 -Simela Sandra ZIM 3051 -Mucezi Masiye ZAM 3052 -Debora Msabila TAN 3053 -Sikhululekile Moyo ZIM 3054 -Lusinde Kumaiba ZAM 3055 -Tatenda Moyo ZIM 3056 -Prundence Chileshe ZAM 3057 -Odilly Kaluba ZAM 3058 -Marian Mukosa ZAM 3059 -Veronica Chisauka ZIM 3060 -Nyambe Nawa ZAM 3061 -Mpande Chameya ZAM 3062 -Priscilla Mudenda ZIM 3063 -Kajatu Mugala ZAM 3064 -Tumaini Chahe TAN 3065 -Ruth Kondo ZIM 3066 -Harmony Shirichena ZIM 3067 -Esnart Chewe ZAM 3068 -Perfect Nyathi ZIM 3069 -Monica Namukwala ZAM 3070 -Hellen Ngabo ZAM 3071 -Musonda Mile ZAM 3072 -Mainess Mutambo ZAM 3073 -Violet Nkaya ZAM 3074 -Mandelena Hanchabila ZAM 3075 -Dorothy Mhepo ZIM 3076 -Christerbell Mwamba ZAM 3077 -Precious Mumba ZAM 3078 -Juliet Nambeye ZAM 3079 -Eunice Kalobwe ZAM 3080 -Kalumbu Bupe ZAM 3081 -Mutangu Mubiana ZAM 3082 -Mercy Nambeye ZAM 3083 -Bridget Kufawatama ZIM 3084 -Anna Mukunza ZIM 3085 -Harriet Nagogo ZAM 3086 -Bukari Natu GHA 3087 -Munyira Mercy ZIM 3088 -Elicy Migodela TAN 3089 -Beatrice Bwalya ZAM 3090 -Memory Chanda ZAM 3091 -Namebo Malindi ZAM 3092 -Agnes Kisage TAN 3093 -Manyingidira Previous ZIM 3094 -Monica Mlambo ZIM 3095 -Chido Kunguma ZIM 3096 -Patience Machisani ZIM 3097 -Libakenu Namatama ZAM 3098 -Charity Mugala ZAM 3099 -Beatrice Chavaligunu TAN 3100 -Hadija Kitoki TAN 3101 -Nessy Chikonde ZAM 3102 -Levania Malinga TAN 3103 -Memory Singogo ZAM 3104 -Chitani Ndlovu ZIM 3105 -Ireen Mwelwa ZAM 3106 -Kalaka Mumba ZAM 3107 -Habiba Jabiri TAN 3108 -Tadzembwa Philis ZIM 3109 -Rusia Mwoneka TAN 3110 -Kasonta Chanda ZAM 3111 -Domina Nyalusi TAN 3112 -Rose Chacha ZIM 3113 -Memory Lubinda ZAM 3114 -Devota Mwenda TAN 3115 -Sara Banda ZAM 3116 -Thandanani Mhlanga ZIM 3117 -Eurita Mangisi ZIM 3118 -Matrida Kasege TAN 3119 -Ruth Mwila ZAM 3120 -Expelansia Tula TAN 3121 -Chinyanga Tariro ZIM 3122 -Monica Mwinuka TAN 3123 -Mashame Chipo ZIM 3124 -Havijawa Sengo TAN 3125 -Roida Mvanda TAN 3126 -Easther Musonda ZAM 3127 -Oliva Mgimwa TAN 3128 -Abia Mgoli TAN 3129 -Mebho Muzavazi ZIM 3130 -Sharifa Muhenga TAN 3131 -Mary Nakamba ZAM 3132 -Maria Mayemba TAN 3133 -Euphresia Nyumbu ZAM 3134 -Mercy Dendera ZIM 3135 -Patience Ncube ZIM 3136 -Portia Dube ZIM 3137 -Mwale Mutemwa ZAM 3138 -Febby Singogo ZAM 3139 -Chafesuka Nominabati ZIM 3140 -Juleit Bwembya ZAM 3141 -Oliva Mangwata TAN 3142 -Leonida Kanzugula TAN 3143 -Chimyama Mola ZAM 3144 -Monde Kapula ZAM 3145 -Nakpecinka Fannam GHA 3146 -Harriet Chanda ZAM 3147 -Shelter Choga ZIM 3148 -Lilian Yumba ZAM 3149 -Brenda Nakamba ZAM 3150 -Rabecca Yumbe ZAM 3151 -Maririma Everjoy ZIM 3152 -Adah Mwembe ZIM 3153 -Exildah Makoleka ZAM 3154 -Sosala Asuya ZIM 3155 -Catherine Chasala ZAM 3156 -Emma Namukonda ZAM 3157 -Catherine Chota ZAM 3158 -Ruth Chisanga ZAM 3159 -Uzia Luwumbwa TAN 3160 -Reprieve Magocha ZIM 3161 -Sofiah Chikonde ZAM 3162 -Moyo Siziwe ZIM 3163 -Masamu Mpande ZAM 3164 -Mercy Chanda ZAM 3165 -Ngandwe Prudence ZAM 3166 -Nalishebo Likando ZAM 3167 -Theresa Nyahunzvi ZIM 3168 -Feika Munmuni GHA 3169 -Mutanga Mwangala ZAM 3170 -Magaya Loryn ZIM 3171 -Kamona Nangana ZAM 3172 -Mulima Alisheke ZAM 3173 -Messiah Chipulu ZAM 3174 -

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Editorial 03P

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Gold Winner

Gold Winner

1st Place

My little innovation is still waiting for its economic breakthrough. Three years ago, I submitted it as an entry entitled “Tasteful Parking” in an online inventors competition in Austria. The scenario is as follows: I stop in front of the barrier at a parking garage, roll down the window and take a ticket from the machine. The barrier goes up and I quickly drive on. The next impatient driver is already waiting behind me. To keep my hands free so that I can both drive and roll up the window at the same time, I place the ticket in my mouth. Thousands of users of parking garages do it every day. And here’s my idea: Why not transform this rather unpleasant sensation of dry paper in the mouth into a surprising and pleasurable one by giving the paper a taste – ideally matching an advertising product depicted on the ticket ?

The competition jury evidently did not find my little invention to be quite so brilliant. Nevertheless, an employee of the Austrian Federal Ministry for Trans-port, Innovation and Technology contacted me a few weeks later to obtain my permission for a small innovation dossier that might be made available to potential interested parties. However, he was quick to dash any hopes on my part that the idea could even prove to be a lucrative one. He said it would be too easy to implement and therefore impossible to protect by patent law. But so much had been obvious to me from the start.

Since then, my innovative proposal has been awaiting its breakthrough as idea number 418 at www.ideenreich.at. It thus shares the fate of millions of other more or less useful ideas that are left neglected on some hard disk or in a forgotten drawer. No great loss in my case, admittedly. Yet, at the end of the day, it is precisely the basic human drive to innovate that so frequently leads to the development of new and important things. The role of government is to encour-age this drive with high-quality training and research institutions. To do so, however, it needs strong partners from the private sector that identify promising projects at an early stage, support their further development and with a little luck help them to achieve a breakthrough. The time is ripe for major innovations.

If you should ever be on the receiving end of a little surprise at the barrier of a parking garage and have a vague recollection of this edition of Bulletin on the topic of breakthroughs, it would give me pleasure.Daniel Huber, Bulletin Editor-in-Chief

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05Contents

The Forest Stewardship Council (FSC) sets the standard for environmentally and socially responsible forest management. Swiss paper (Z offset, with 30 % FSC component), from European pulp, produced by Ziegler Papier AG, Grellingen (ISO 14001-certified). Your link to our know-how: www.credit-suisse.com/infocusC

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Breakthrough as a Catastrophe The greatest fear of the Dutch is a break in their dikes. Pictured above are the barricades during a disaster exercise in November 2008.

06 _ Discovery When the time is ripe, a form of competition often leads to the same discovery.

10 _ Jump Steve Truglia wants to be the first human to break through the sound barrier in free fall.

12 _ Dikes Powerful barricades are designed to protect two-thirds of the Netherlands from catastrophic floods.

18 _ Marketing Former Apple man Guy Kawasaki on brilliant ideas and business breakthroughs.

20 _ Mediation The ingredients for breakthroughs at the negotiating table.

24 _ Unification Harald Jäger, the East German border guard, who was the first to open up the Berlin Wall.

26 _ Change Japan’s former coal town Kuzumaki now markets “milk, wine and alternative energy.”

Credit Suisse

29 _ At a Glance A handful of business, sponsor-ship and society news related to the bank

30 _ Global Rebalancing Thought Leader Conference with Nassim Taleb, Dennis Tito

32 _ Picasso Exhibit London’s National Gallery shows the artist’s ties to the Old Masters

34 _ Black List Project A movie and an exhibition portrait of leading African-Americans

38_BenefitAuction Room to Read charity profits from Art & Entrepreneurship

41 _ Martin Helmchen A young pianist who has broken through on the classical scene

42 _ Off the Streets Initiative for more playgrounds in New York

44 _ Corporate Spirit The Credit Suisse Americas Foundation can strengthen team spirit

Economy

48 _ Investing in Art Collectors from emerging markets enliven business

53 _ 2009 Outlook Signs of evidence that equity and bond markets could move upward

54_ Economic Growth Knowledge as the fundamental growth driver

56 _ Satellite Technology Universally available Internet access may soon be a reality

58 _ Household and Care Products Less expensive goods are back in demand

Leader

62 _ Lorin Maazel Looking back at a great career that isn’t over yet

Service

47 _ Masthead

61 _ Good to Know/Reading Up

12

Breakthroughs and Innovations06

Credit Suisse Bulletin 1/09

Same Time, Same Idea

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Same Time, Same Idea

Discoveries are made when the time is ripe for them. This is the reason why so many original ideas have a number of creators. But the person who makes the final break-through with an idea or product is not necessarily the one who was first on the scene.

Germany, 1895. A glassblower creates three identical tubes, pack-ages them up individually and sends them to three physicists. Two of the tubes are broken in transit. The third is received intact by Wilhelm Conrad Röntgen, who makes use of it in the discovery of Röntgen radiation, now known as “X-rays” in the English-speaking world, but still by the scientist’s name in German. “It is therefore simply a matter of postal coincidence that we talk of Röntgen rays and not Hallwachs rays,” observed Wilhelm Hallwachs, the recipient of one of the two broken tubes. A joke? Certainly, but it contains an important grain of truth. Röntgen was not the only one experiment-ing with glass tubes: At least three physicists had discovered X-rays before Röntgen and had assumed that what they were seeing was not something new, but merely a “dirt effect.”

How do breakthroughs in science and technology come about ? Are discoveries strokes of individual genius, or do they simply occur when the time is ripe? In the case of X-radiation, we can cede that there was experimental skill and the power of observation behind the discovery, as well as the art of drawing the correct conclusions from what was observed. But without diminishing Röntgen’s role in the process, we can also say that X-radiation would have been discovered even without the man whose name is still associated with the phenomenon in the German language. And to be honest, prob-ably not a great deal later.

Science as a Collective Process

We like to imagine scientific pioneers as isolated geniuses, like authors, somehow creating something new out of nothing. But this romantic notion is misplaced: The scientific community functions as a collective, with researchers being very closely networked. And as the Röntgen example demonstrates, there are often any number of protagonists working toward the same discovery. In the world of literature, by contrast, it all comes down to the imagination of the individual. Goethe made this distinction clear when he explained why scientists were so prone to intense bickering about the “priority” of a discovery. He pointed out that in literature “a single idea can form the basis of a hundred epigrams, and it becomes merely a question

of which poet can then encapsulate this idea in the most effective and beautiful manner. But in science the treatment is naught, and all efficacy lies in the aperçu.”

Can we imagine “Anna Karenina” without Tolstoy ? Of course not. Can we imagine the lightbulb without Edison? Certainly. Indeed, the first filament lamps appeared as early as 1820, 60 years before Edison received his famous patent. Edison may have decisively im-proved and successfully marketed the lightbulb, but to assert that he was the “inventor” is simply wrong. An even more extreme case of this is the telephone, which was “invented” at least five times. Alexander Graham Bell, who is nowadays most commonly cited as the inventor of this device, submitted his patent application on February 14, 1876, just two hours before the American engineer Elisha Gray submitted the very same thing.

Something “in the Air”

There are several hundred examples of such “simultaneous” inven-tions, proving that breakthroughs are often not the result of indi-vidual strokes of genius, but are more likely to appear when the time is right. In other words, when the wider parameters are favorable, when the necessary preparatory work has been done and when there is a need for the invention in question. “It is notorious that the same discovery is frequently made simultaneously and quite independently, by different persons,” wrote the British statistician and psychologist Francis Galton. “It would seem that discoveries are usually made when the time is ripe for them, that is to say, when the ideas from which they naturally flow are fermenting in the minds of many men.”

Is it the case perhaps that the phenomenon of simultaneous dis-covery is limited to small breakthroughs? Amazingly, no. Even where the most significant theories of physics, biology and mathematics are concerned, there are some astonishing parallel precedents. The special theory of relativity: This is traditionally traced to a work by Albert Einstein in 1905. But the French mathematician Henri Poincaré was also within touching distance. He had already worked out the right equations and had formulated the relativity principle

Text: Mathias Plüss

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in 1904. Even today, Einstein is still sometimes accused of plagia-rism in this respect. Einstein later asserted that he was unaware of Poincaré’s key work in this field. But he willingly admitted that “the special theory of relativity, if we look at its development with hind-sight, was ripe for discovery in 1905.” As he pointed out, it was “not improbable” that the theory of relativity could have been discovered decades earlier if physicists of the period had been discussing the things that were preoccupying their successors at the beginning of the 20th century. The theory of evolution: Charles Darwin’s work in his first book on evolution was already far advanced in 1858, when he came across an article written by the English naturalist Alfred Russel Wallace, who had formed a theory that resembled his own “to a highly remark-able degree” (as recalled by the biologist Ernst Mayr). For Darwin, it was as if the roof had fallen in: “I never saw a more striking coinci-dence,” he commented. “If Wallace had my manuscript sketch written out in 1842, he could not have made a better short abstract. So all my originality, whatever it may amount to, will be smashed.” But Darwin would be proved wrong in this respect: He and Wallace joined forces to publish their findings, initially together. In the public mem-ory, Wallace has been wrongly forgotten. Infinitesimal calculus: The application of “differentiation” and “inte-gration” represents perhaps the key foundation of modern mathematics. But here too there are two father figures: the Englishman Isaac Newton and the German philosopher Gottfried Wilhelm Leibniz. Newton conceived his theory in 1665, Leibniz independently about 10 years later. But when Leibniz published his results, Newton accused him of plagiarism against his better judgment. And so developed one of the most poisonous priority disputes in the history of mathematics.

Where the actual breakthrough is concerned, the question of who was first is not even what really matters. Newton genuinely was the first, but he did not spark anything off. By contrast, Leibniz formu-lated his own infinitesimal calculus in an astonishingly sophisticated way and introduced signs such as ∫ and dx that mathematics still uses today. In so doing, he opened up a new dimension for Conti-nental European mathematics. This was in contrast to mathematical progress on the other side of the English Channel: The English stuck to Newton’s convoluted method and made no headway for decades. Goethe, who himself was involved in a number of priority disputes, once commented: “That which is ‘in the air’ and demanded by its time may spring up in a hundred heads at once, without any man borrowing it from another. But … in the argument over priority and legitimacy, no one has a more rightful claim than the man who establishes himself in the mind of others.”

That Miniscule Difference

If an invention fails to function properly it will be worth nothing. Often it is the perceived details that tip the balance in terms of a breakthrough. In the case of Edison, the quality of the filament was the decisive factor. In the case of the vacuum cleaner, it was the mouthpiece. The inventor of the vacuum cleaner is considered to be Englishman Hubert Cecil Booth, yet here too there were many parties involved and a long prehistory. When Booth submitted his patent application in 1901, he immediately attracted a host of objections. Twenty-three earlier submitted patents of similarly con-structed vacuum cleaners were held up as proof of his lack of orig-inality. At first, the judges were suitably skeptical: “Is it really an invention if he says that the mouthpiece needs to be closer to the

The British engineer Hubert Cecil Booth (1871–1955) submitted a patent for a vacuum cleaner in 1901. However, 23 other patents for machines that functioned in a similar way had already been submitted. What finally convinced the judges was the mouthpiece of Booth’s construction, which was the only one to directly touch the ground and thereby by far achieved the greatest effect.

Breakthroughs and Innovations 09


carpet so as to better suck in the dust-laden air ?” scoffed one. But as it transpired, the fact that the mouthpiece of Booth’s device did indeed directly touch the ground proved the decisive difference. In a test, it was shown that his machine could remove 150 grams of dust from a carpet, whereas the next-best device could only remove 1.5 grams from the same area. The judges were convinced, and Booth received his patent.

So, first of all, an invention must be useful if it is to assert itself. Second, someone must step in to propagate the invention. It is often bemoaned that no computer industry has evolved in Switzerland, despite the fact that countless innovations in this area have emerged through the Swiss Federal Institute of Technology (ETH Zurich). But the simple answer is that, unlike today, these innovations emerged at a time when no one at the ETH had the slightest interest in mar-keting their own inventions. And the Swiss manufacturing industry was either too conservative or insufficiently attentive. On only one occasion did Swiss investors try to commercialize an ETH invention, namely the Lilith workstation invented by Professor Niklaus Wirth. But because this was undertaken in an unprofessional way and the financial backers showed too little patience, the project failed after just one year. Wirth’s most successful invention, the programming language Pascal, was offered to all interested parties by the ETH at cost price and it was finally an American who made money out of it.

Obsolete Inventions

Third, for a discovery to be successful, it must come at the right time. Leonardo da Vinci’s ideas, which really were the work of genius, came to nothing in practice, as they were far in advance of the prevailing state of technology. But ideas can also come too late. In

the 1920s, the German engineer Anton Flettner invented a totally new form of ship propulsion that used rotating cylinders instead of sails. The corresponding technical know-how had been around since as early as 1850, but for 70 years no one had come up with the idea. Once thought up, the Flettner boat had the potential to be vastly superior to the sailing ship, but because of the cheap price of oil it had no chance against the new technology on the scene: diesel pro-pulsion. And so Flettner’s idea disappeared off the radar.

But perhaps its time is about to come again. At the beginning of August 2008, a new type of freighter possessing a diesel engine and four Flettner rotors ran off the slipways in Kiel. The manufactur-ers are anticipating a fuel saving of 30 percent to 40 percent as a result of this technology. Who knows, if the oil price rises high enough, perhaps the Flettner ship will manage to make a belated breakthrough after all ? <

IT Professor Niklaus Wirth (1934) achieved global fame through the development and implementation of his programming language Pascal. He also developed the Lilith workstation at the Swiss Federal Institute of Technology (ETH in Zurich). However, the ETH lacked both the necessary means and marketing expertise to commercialize this successfully.

Breakthroughs in the Sound Barrier10


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CrashingThrough The Sound Barrier

Unfit for the big jump: When Steve Truglia tried on the NASA space suit it soon became clear that he was too heavy for the record jump. He therefore had a high-performance overall produced in Russia in line with his special wishes.

In Free Fall

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In 1960, US Air Force test pilot Joe Kittinger jumped from an altitude of 31 kilometers in free fall toward the Earth and still holds the record for the highest parachute jump.

CrashingThrough The

Preparations are currently under way in the US for the highest parachute jump of all time. If the free-fall jump from 36 kilometers succeeds, it will be the first time that a human being has broken the sound barrier without external propulsion. But that’s not all. Plans are already in hand for space jumps from 91 kilometers up.

Some time in the next few months, if everything goes according to plan, Briton Steve Truglia will be climbing into a capsule in Oklahoma. This capsule will be suspended from a huge balloon and together they will begin their long ascent into the heavens. When they reach a height of three kilometers the air will start to get thin and Truglia – a former member of an elite military unit and a professional stuntman – will be glad that he’s brought along some oxygen. By 12 kilometers the temperature could already be as low as –50 °C. When he reaches an altitude of 19 kilometers, the atmosphere will be so thin that the smallest hole in Truglia’s space suit would cause his blood to boil and the 45-year-old would die a painful death in sec-onds. After around two hours Truglia will have reached an altitude of 36 kilometers. The temperature will be –100 °C. Above him will be the black vault of space, far below him the blue planet.

And then Truglia will jump. He will plunge toward the Earth like a human meteor and break a whole range of things as he does so. Like the record for the highest parachute jump, which has stood at 31 kilometers for the past 48 years and was set by Captain Joe Kittinger of the US Air Force. Or the record for the highest speed that a human being has reached without artificial propulsion. And last but not least, Truglia will break the sound barrier. Just a few seconds into his jump the Briton will be traveling at an estimated 1,200 kilometers per hour (kph) and therefore break through his own sound envelope. No one can tell him what this is going to feel like without the protecting cocoon of an aircraft. “We just don’t know,” says Truglia.

He’s not the only one to feel the need to go ever higher. Truglia’s biggest rival is Frenchman Michel Fournier whose plan for his own Big Jump (Le Grand Saut) at North Battleford, Canada, in May 2008 was scuppered by a technical fault when his balloon became de-tached from the capsule and floated off, leaving Fournier behind.

And in the next few years US company Orbital Outfitters intends to start offering space flights during which wealthy adventurers will leap from a rocket and parachute back to Earth. “The highest jump will be from 91 kilometers above the Earth’s surface,” promises the company’s founder Rick Tumlinson. From this kind of altitude jumpers

could reach speeds of 4,000 kph – four times faster than a jet-propelled airplane. “Space jumps are the last big stunt on Earth,” enthuses Truglia.

But it’s not just about the adrenaline rush. With the help of its space-jump pioneers Orbital Outfitters intends to develop technolo-gies that could be used to evacuate astronauts from space in the event of an emergency. One of the driving forces behind the com-pany is former NASA doctor Jonathan Clark, whose wife Laurel was aboard the Space Shuttle Columbia when it disintegrated on re-entry in 2003. “Our long-term aim is to be able to get people back to Earth from a space station or from the shuttle,” says Tumlinson.

The project is not without its dangers for the pioneers. The last attempt to break Kittinger’s altitude record was by a US amateur called Nick Piantanida in the mid-1960s. He died after his facemask opened at an altitude of 17 kilometers.

Kittinger himself was fortunate to survive two of his three space jumps. As a test pilot, he was a member of a team that wanted to find out how far and how fast a human being can fall – and survive. But during his very first jump from 23 kilometers one of his three parachutes opened prematurely and its cords became wrapped around his neck. He began to spin on his own axis and lost con-sciousness. He was saved by his main chute, which opened auto-matically at an altitude of three kilometers and deposited him safely on the ground in New Mexico.

During his record-breaking jump on August 16, 1960, one of his gloves developed a tiny leak. As a result, Kittinger’s right hand swelled to twice its normal size during the ascent. He did not tell the ground team what was happening because he did not want to jeopardize the attempt.

Contrary to widespread rumors, Kittinger did not break the sound barrier during his fall. But he did reach 988 kph, just under the required speed. Consequently, the moment at which he breaks the sound barrier is the least predictable of all the risks that Steve Truglia will be taking. Will the shock waves dance over his body like a thou-sand tapping fingertips? Will they trigger the opening mechanism of his parachutes? That would mean certain death. Because at this point in his descent Truglia would be falling so fast “that the shock would tear my body into pieces,” he says. He is currently looking for sponsors to make up the balance of the two million pounds that the jump will cost.

However, if things happen as Truglia hopes they will, when he first emerges from his capsule he will scarcely notice that he is falling. The Earth will be so far below him that he will feel as if he is hanging motionless in space. In the near vacuum there will be no wind in his ears, and no breeze to crumple his suit.

Little by little the atmosphere will become denser. An initial para-chute will stabilize his trajectory and two others will slow his descent. He will fall through the cloud cover and use his main chute to steer toward a landing spot. Finally, after fifteen minutes, he will be back where he started. Somewhere in Oklahoma. <

Text: Ute Eberle

Breakthroughs in the Netherlands12


Wa terBreakthrough is usually a positive word, conjuring up visions of fresh perspectives, new opportunities, the overcoming of hurdles. But when applied to their dikes and dams, the Dutch fear it like nothing else. Approximately two-thirds of the country is below sea level. That amounts to almost 10 million people, together accounting for 65 percent of the country’s gross domestic product.

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On November 7, 2008, a nationwide flood catastrophe exercise was held in the Netherlands. It represented the largest-scale exercise of its kind in Dutch history. The picture on the previous double page shows the evacuation of many different wild and domestic animals in the flooded area of Flevoland. The “houses” shown are actually floating dummy roofs.

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Things got really bad when the flood waters returned. It was the February 1, 1953, and southwest Holland was devastated. A winter storm had brought a huge surge of water toward the Dutch coastline. The storm had combined with a spring tide, bringing the water level in the port of Hoek van Holland to 3.85 meters above normal on the water gauge. In the coastal town of Vlissingen the surge was as high as 4.55 meters.

The first dike gave way at three in the morning, and by the time the sun rose the water had made no less than 467 breaches in the maritime defense lines. Next to the village of Stavenisse, a section of 1.8 kilometers was broken through. Entire villages were swamped like sandcastles, and people climbed onto the few remaining barns and silos, and prayed that the roof frames would take their weight.

When the flood waters returned in the afternoon, the water rose even higher. Large numbers of people now sought refuge on roofs. At times the waves surged over and those who were unable to cling on drowned. 1,835 Dutch people died in the flood of 1953. Around 200,000 were made homeless. A total of 47,000 buildings were either damaged or destroyed. The corpses of several 100,000 cattle and 165,000 chickens were left rotting around the countryside. And yet this was not the worst natural catastrophe in Dutch history. The flood of 1421 drowned at least 10,000 people, that of 1570 another 3,000 or so. And in the centuries both before and after these disas-ters, thousands upon thousands more perished.

Two-Thirds Below Sea Level

When you fly to Amsterdam today, you land on a runway built a good three meters below the surface of the surrounding sea. And just an hour’s drive away lies one of the lowest points in Europe: the Zuid-plaspolder between Rotterdam and Gouda, almost seven meters

below sea level. What’s more, in large parts of the country the ground is actually sinking further – the consequence of geological processes, natural gas extraction, or a falling water table. Approximately two-thirds of the Netherlands are below sea level. That amounts to almost 10 million people, together accounting for 65 percent of the country’s gross domestic product.

“Researchers say we shouldn’t be living here,” admits Herman Havekes of the Unie van Waterschappen, a union of local water authorities. “But most people in Holland don’t give it a moment’s thought.” A good 16 million people dwell in the modern Netherlands, making it one of the most densely populated regions in the world.

In the north of the country, archaeologists recently discovered the remains of an old earthen dike that was possibly constructed a couple of hundred years before the birth of Christ. Ever since, people have continually been trying to keep the water at bay. That the Netherlands is inhabitable today is thanks to around 3,500 kilo-meters of dikes and dunes that run along its coastline and rivers: the equivalent of approximately 10 times the length of the country. These are backed up by around 14,000 kilometers of secondary dams and walls along canals, bays and polders. Thousands of people are em-ployed on an ongoing basis to keep the country dry. The costs of this endeavor amount to some 1.4 million euros every day.

Powerful Flood Barricades

The national response to the catastrophe of 1953 was to build a system of dynamic flood barricades so powerful that many consider them the eighth wonder of the world. It took decades to complete the work. Not until 1997 was the last piece of the so-called Delta Works put in place. The “Maeslantkering” in front of Rotterdam pos-sesses two movable gates, each almost as long as the Eiffel Tower. When storm flooding threatens, this international port is sealed off from the North Sea. In its 11-year existence, this has only

Text: Ute Eberle

>

Although a large part of the exercise was restricted to mock planning activity, a number of areas were subject to actual rescue actions. Military and civil defense units rescued people from roofs with boats and helicopters.



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happened once. Thanks to the Delta Works, the Dutch have begun to feel protected against flooding for perhaps the first time in their history. “No one has drowned by flooding in Holland since 1953,” says Havekes. “That’s a historical record for us.” But then came climate change.

An inkling of what this might unleash was experienced by the country in 1993. Unbelievable quantities of rainfall caused the river Maas to rise a good eight meters above its normal level and burst its banks. The nation held its breath, waiting to see if the dikes would hold. Two years later, it was the Rhine that threatened to burst its banks: 250,000 people were evacuated. The roads became grid-locked with cars, trucks, tractors and bicycles. “It was like war had broken out,” recalls one observer. “We had the army patrolling the city streets.”

Terrifying Images From New Orleans

But what really robbed the Dutch of their peace of mind was Hurricane Katrina. They watched with horror as the waters engulfed New Orleans in August 2005. True, the flood defenses of this US city were only built to withstand the rigors of a “once-a-century” flood, whereas the dikes of the Netherlands are now built to resist the kind of flooding that is expected to occur every 1,250 years – and in the most densely populated central area, even once every 10,000 years. Moreover, it transpired that a combination of poor main-tenance and attempts to save money had made the New Orleans levees so unstable that they collapsed even before they were overrun. On the other hand, recent studies have shown that at least a quarter of Holland’s dikes and dams themselves no longer meet modern standards. “Our lax attitude could cost us dearly,” prophesizes water researcher Han Vrijling from the Technical University of Delft, warn-ing of a “bathtub” situation occurring “like in New Orleans.”

Meanwhile, a doctoral student sat down and calculated what would happen if the water defenses of southern Holland were to be breached again. He predicted over 4,000 deaths. In many places, he concluded, the water would arrive so quickly that there would be virtually no time for people to be evacuated.

Stung into activity by this thesis, the government set up a com-mission to investigate. For a whole year, 10 experts studied the future of the Netherlands against a backdrop of climate change. In September 2008 they presented their results – the country is in danger. “The security level must be increased by a factor of 10 at the very least,” they wrote. And just for good measure: “The task is an urgent one.”

Climate researchers are expecting a combination of the green-house gas effect and sinking ground levels to increase the sea level off the Dutch coast by between 65 and 130 centimeters by 2100, followed by a further 2.70 meters over the next 100 years. On top of this, more rainfall is also expected: a rise of up to 25 percent in wintertime. This would see rivers surge to unprecedented levels. For the Rhine alone, researchers are predicting maximum flow levels of 18,000 cubic meters a second: the equivalent of almost 400 times of the country’s annual water consumption.

Controlled Overflow

Even today, the Netherlands bolsters its 340-kilometer-long coast-line with 12 million cubic meters of sand every year. This is the equiva-lent of a wall two meters high and two meters thick stretching from Rotterdam to Barcelona and back. Further measures are now in hand

to protect the beach dunes and river deltas. According to the com-mission, an additional one-and-a-half billion euros or so will be required every year to secure the Netherlands against the effects of climate change. And Prime Minister Jan Peter Balkenende has prom-ised to draw up the corresponding draft legislation as a matter of urgency. But the resolve to confront climate change head-on is also coupled with a growing realization that even the Netherlands cannot totally conquer the problem of water.

Giving Back Land to the Water

So in recent years, the nation so proud of its record of claiming land from water – by building dikes around waterlogged areas and pump-ing out the water – has actually begun to do something that would once have been unthinkable: giving land back to the water. Along many rivers, dikes are being lowered, set back or even removed al-together. This policy is designed to make controlled flooding possible. Near Groningen, dredgers are excavating an inland sea covering some 800 hectares – the largest area of agriculturally viable land that has ever been voluntarily given over to water. In the event of a catastrophic flood, this is designed to temporarily store up to four million cubic meters of water.

“We are no longer working ourselves into a frenzy trying to fight against the water,” is how the Ministry of Transport and Water – the highest body in the drive to combat flooding – announced the dramatic policy volte-face on its Web site. Instead, it stated, ways were being sought “to live with it in harmony.”

How this might work in practice can already be seen in Maas-bommel, a sleepy village some 100 kilometers southeast of Amster-dam. Here, in the Maas river delta, a new settlement was built just a couple of years ago. The forty or so candy-colored houses are sited on the water-facing side of the dyke, and close-up inspection reveals they are fortified with poles some six meters long. This anchorage is crucial, as the residences are “amphibian.” Most of the time they sit on the ground like normal houses. But when the water rises to a certain height, they begin to float. As their foundations consist of a cement tub, they remain dry inside. And as the connec-tions are flexible, gas, electricity and waste water can flow without interruption, even if flooding lifts the house several meters off the ground. Experts have calculated that these semicircular-shaped houses will on average begin “floating” once every five years.

Floating Houses

Elsewhere in the Netherlands, planners are delving many centuries into the past to uncover techniques of preparing for flood waters. For example, houses in low-lying new construction areas could poten-tially be constructed on poles or “terps” – artificial earthen hills that were used back in Roman times. Work is also under way on floating schools, churches and even multi-storey blocks. Meanwhile, the first floating greenhouse – a 600-square-meter glass construction on a platform made of reinforced concrete and styrofoam – has already been opened.

But for all their enthusiasm for such waterproof innovations, the Dutch are never likely to fully embrace the word “breakthrough.” At the beginning of November, the government held a national flood catastrophe exercise. Some 10,000 civil servants and rescue workers took part in this exercise, making it the largest such event in Dutch history – because however prepared you think you are, you never really know. <

Breakthroughs in the Netherlands 17


First-aid tents were set up in front of large video screens showing live broadcasts of helicopter rescue missions. Evacuated people received medical attention. A care home affected by the flooding was relocated. The damaged dams were given additional support in the form of sandbags and plastic sheeting.

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Breakthrough in Business

When the Macintosh personal computer hit the scene back in the ’80s, Guy Kawasaki was the man behind its marketing success. Since then, he has made a name for himself as an entrepreneur, investment banker and as a venture capitalist with a nose for discovering breakthrough companies and products.

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Interview: Daniel Huber and Michèle Bodmer

Bulletin: You’ve enjoyed a varied and successful career.

Did you have a personal breakthrough that steered you into

taking the right paths?

Guy Kawasaki: Certainly Macintosh “made” me. But that was defi-nitely sheer luck on my part because my college classmate hired me – that was my primary qualification. I would describe my career as one of small, incremental steps that I achieved by grinding it out. Basically, I’m a grinder, not a leaper.

What’s the difference between a breakthrough and

an invention?

That’s simple. A breakthrough innovation is one that sells.Are you changing the world by investing in one breakthrough

after another?

We hope so. One more recent example is Miasole, which is a breakthrough thin film solar cell company. (Thin film solar cells are cheaper and thinner than the crystalline silicon cells used in the vast majority of solar panels on roofs.)

Is there still such a thing as a true breakthrough, or are they

usually based on imitation?

Most breakthroughs are based on existing things or at least the application of existing technology to a new problem. The concept of the single “aha” moment is vastly exaggerated.

What are the top five criteria for a breakthrough idea?

There’s only one: that it sells. If you can do this, all else follows. If you can’t, nothing else matters.

Does innovation have an enemy or an inhibitor?

It has a thousand enemies: inertia, ignorance, resistance to change, stupidity etc. etc. The worst is the “things are going well, customers aren’t asking for innovation, why should we do this?” argument. If innovation were easy, more people would do it. This is the big challenge. Ironically, sometimes current success is an enemy because people don’t want to change unless they have to.

How do you spot a good idea with serious breakthrough

potential?

The best way to do this is with hindsight. In many cases, people simply didn’t know something would succeed.

How do you stay up-to-date?

I read voraciously both paper-based and Internet-based publications. My company also created a Web site called Alltop.com. It provides news aggregation by topic. This is enormously useful to me. We even have http://innovation.alltop.com/ which follows just the topic of innovation.

Is it possible to somehow nourish the ability or the process

of inventing something groundbreaking?

It sure is. Generally speaking, you should empower people to create the product that “two guys/gals in a garage” would create in order to destroy your company. That is a very good perspective.

Based on your experience, who are some people who have

come up with the most successful ideas? Do they have certain

qualities in common?

Certainly Steve Jobs is near the top. He has come up with idea after idea: Apple I, Apple II, Macintosh, iPod and iPhone. Few people have this track record. His quality is that he doesn’t care what people say they want. He creates what they don’t know they want.

What in your opinion has been the greatest breakthrough

in this century so far?

Although Google started a bit before 2000, it has truly been a tremendous breakthrough.

How about the top three breakthroughs of the last century?

DNA mapping, personal computers and the Internet. This list shows my bias.

What is the biggest breakthrough that you failed to recognize

or let slip through your fingers?

Yahoo. I was offered the chance to interview for the CEO position and decided not even to go to the interview. <

Guy Kawasaki is a managing director of Garage Technology Ventures, an early-stage venture capital firm, and a columnist for Entrepreneur Magazine. Previously, he was an Apple Fellow at Apple Computer, Inc. He is the author of nine books including “Reality Check,” “The Art of the Start,” “Rules for Revolutionaries,” “How to Drive Your Competition Crazy,” “Selling the Dream” and “The Macintosh Way.” Kawasaki has a bachelor’s degree from Stanford University and an MBA from UCLA, as well as an honorary doctorate from Babson College.

Breakthroughs at the Negotiating Table20


Come One Step At a Time

Break throughs

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Politicians are fond of talking about breakthroughs at the negotiating table. Yet the breakthroughs they achieve are never sudden – they are reached one step at a time, invariably as a result of patient preparation. In business, it is no different. An effective and successful negotiator is one who “includes” the parties with the most to lose.

Come One Step At a Time

Break throughs

Breakthroughs at the Negotiating Table22


Text: Ruth Reichstein

The sun rises slowly over Brussels. The city is still shrouded in mist. Belgian finance minister Didier Reynders appears before the press, his eyes red and his face pale. He is clearly very tired and speaks slowly and awkwardly. But his message is clear: “Working closely with the French government, we have found a solution for Dexia. The bank has been saved,” he says, a smile flit ting briefly across his face.

The negotiations lasted throughout the night. “We were often interrupted. The French finance minister had to consult with Paris. We needed advice from our experts. The discussions would then resume,” recalls Reynders. The French President Nicolas Sarkozy was largely to blame for the official announcement of the break-through being delayed until the morning. “The French minister was unable to reach a decision on her own. She had to get the approval of her president,” says Reynders.

The Compromise-Hardened Belgians

He sits in his office on a sofa with beige -colored silk covers. One arm rests casually on the seat back. In spite of the financial crisis, he appears relaxed – probably because he is now able to discuss the success of his negotiations. And who doesn’t enjoy doing that ? “First, I think about the negotiations that took place during the financial crisis, when we had to come up with a solution for the Fortis and Dexia banks in Belgium. But I also think about the many reforms that I managed to push through. That is something that not only I, but the whole country still remembers,” says Reynders, who has spent 10 years as Belgian finance minister in various coalitions. One of his successes during this time was the 2001 income tax reform, which he managed to push through after five long years of negotiations.

Reynders knows what it takes to achieve such breakthroughs at the negotiating table. Because the Flemish and the Francophones are constantly having to compromise in their own country, the Bel-gians have developed negotiation into something approaching an art form. “We live with compromise. But we also know that a com-

promise proposal should never be tabled prematurely. If it is, it is unlikely to be accepted.” “The time for a compromise proposal is never right until all the negotiating partners are willing to make concessions to reach a solution,” says the Belgian finance minister. Sometimes the proposal can appear quite simple. Reynders still remembers a discussion he was party to before the introduction of the euro. The 200 and 500 euro notes contain a metallic strip to prevent forgery. “There was a discussion between the members of the eurozone about when the note should cease to become legal tender. Some said when five square millimeters of the strip were missing; others said three square millimeters. We Belgians knew from the start that the final figure would be four, but we didn’t say so until two hours into the discussions. That was the only way the logical compromise solution was going to have a chance.”

Saving Face

In business circles, too, the way you conduct negotiations is critical. “The most important thing is that nobody loses face. Even the actual ‘losers’ must feel they are winners,” says Hans-Joachim Kamp, head of the German subsidiary of Dutch electronics giant Philips. Eighteen years ago, he took over as sales manager of the consumer electronics division. At the time, Philips was not even one of the market leaders and the company was in need of major restruc-turing. “You have to take your time. Addressing an issue aggres-sively will get you nowhere. You have to carry people with you and give them the impression that you take their views seriously. After all, you will need the same people later when you put your ideas into practice,” he says.

Things happen fastest when you negotiate at the highest level – decision maker to decision maker. This has been the experience of Endrik Coysman, managing director of the Belgian IMPS Group, which markets the Smurf cartoon characters worldwide. Thirty years ago, he was in charge of advertising for the yoghurt company Danone and was eager to have a Smurf on the company’s product packaging. “The agent told me it would be vir tually impossible. Negotiations with the family of the artist Peyo lasted months. I had

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almost given up hope,” says Coysman. The breakthrough finally came when a colleague arranged a face-to-face meeting with the Smurfs’ creator. A few hours later, he had his signature on a contract. A long friendship developed from that first meeting, and a couple of years after the initial collaboration, Coysman even went to work for the Smurf company.

Personal Relationships Help

“You should never underestimate the value of a personal relationship with your negotiating partner,” says Didier Reynders. The Belgian minister relies on the contacts that he has built up over the years. “When I call the president of the European Central Bank, Jean-Claude Trichet, I get through to him because he knows me. I am on first-name terms with the president of the International Monetary Fund, Dominique Strauss-Kahn. It doesn’t take me long to reach the people I need to help solve a problem.”

It becomes more difficult when you have never met your nego-tiating partner before, or when you only know them superficially, which can happen when negotiating at European level. “The differ-ent negotiating cultures in Europe drive me to despair,” says Evelyne Gebhardt. The socialist MEP from Künzelsau in the German federal state of Baden-Württemberg was responsible for the controversial directive that regulates the movement of services by the self- employed in EU member countries. “In Germany, we do things one step at a time. Once we have reached an agreement, that agreement stands. In France, on the other hand, everything remains subject to negotiation until the last minute – and you can agree a compromise with the British, only to find two hours later that all bets are off,” says the MEP. Her negotiating breakthrough was not so much a single event, but rather a series of small successes, such as when the min-isters of the EU member states said they could live with the compro-mise wording of the directive, or when the conservatives announced their agreement in the European Parliament. “Each time it happened, my heart gave a little jump for joy,” says Gebhardt.

Self-imposed time limits are particularly important to the success of negotiations at international level. “If, for example, you have a

financial summit on November 15, you need to issue a joint declara-tion the same day. If you fail to issue one by the next morning, the press will call the summit a failure – and no politician wants to hear that.” The negotiating parties would rather stay up all night trying to find even the smallest amount of common ground.

Rather Sleep Than Celebrate

These successes – whether in business or in politics – are hardly ever celebrated. “When you’ve been talking all night, the last thing on your mind when you get home at six in the morning is a glass of champagne – you just want to get some sleep,” says Wilhelm Schön-felder, former German ambassador to the EU, who took part in the negotiations on the introduction of the euro and the EU climate pack-age. “You can’t achieve a breakthrough in five minutes. Success requires a long period of negotiation.”

But for a politician, the most satisfying success, the biggest breakthrough, is an electoral success. Didier Reynders remembers the parliamentary elections of June 2007 with particular fondness. That was when the French-speaking liberals under his leadership won their first-ever majority in the French-speaking part of the country. The socialists had always been the dominant party there – ever since the end of World War II. “When you succeed in pushing through a reform, you feel like a novelist who has just written the last sentence of a book, or like a composer who has just committed the last note of a composition to paper. But an electoral success like that one is something very special. It is a reward for many years of work.” – A genuine breakthrough, in fact. <

“When you’ve been talking all night, the last thing on your mind when you get home at six in the morning is a glass of champagne – you just want to get some sleep,” says Wilhelm Schönfelder, former German ambassador to the EU.

Breakthroughs in the Wall24


The officer Harald Jäger, who gave the fateful order to open the Berlin Wall on November 9, 1989, recounts his experience.

“Open The

Harald Jäger in front of the last remains of the wall on Bernauer Strasse in Berlin.

Gate”

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Actually November 9, 1989, was the best thing that could have happened to me. After all, I was not opposed to the system. As a lieutenant colonel in the Stasi, in charge of search missions, and posted as a border guard at Bornholmer Strasse in Berlin, I was a reliable cog in the East German machine. I chose this vocation, and was a true believer in socialism for a very long time. “The Party never lies !” was our motto. What nonsense! The only thing the Socialist Unity Party of Germany (SED) was interested in was preserving its own power. My doubts arose only slowly, but they had been fester-ing inside me for a long time already. Still, I would never have defected to the ranks of the “class enemy.” I did want to help build a socialist society, after all. I don’t know how long it would have taken, but sooner or later I would have come to the point where I would have had to leave the service for ideological reasons. But then that crazy November night came and made the decision for me.

When I reported for work at 8 a. m. that morning, I expected a quiet day. I only got the feeling that something was going wrong when I went to the canteen for dinner around 7 p. m. and saw Günter Schabowski’s televised press conference on the results of the 10th Politburo meeting. In reply to the question of an Italian journalist as to when the new travel conditions would come into force, Schabowski answered, in what has since become a famous pronouncement, that East Germans would have the right to leave the country immedi-ately. “Schabowski’s gone nuts,” I yelled. My colleagues tried to calm me down. I immediately contacted my superior at the center of op-erations. But he told me he thought that everything Schabowski had said was nonsense.

Then suddenly people were gathering at the border. At first there weren’t very many, but soon it must have been thousands. “We want to cross,” they shouted. I maintained constant contact with my su-perior, but he wasn’t getting any orders himself from Mielke’s min-istry. Nobody wanted to make a decision about anything. I learned more about our party leadership and our absurd state that night than in all the decades that preceded it. The next few hours seemed to pass in slow motion, as if I was watching from a distance. The situation continued to escalate. I felt a sense of hatred directed toward all the decision-makers who had left us out in the cold. And I was also afraid that the crowds would try to overwhelm us. If that had happened, the border troops would have had to intervene and violence could have broken out. I realized that the only thing to do was to open the border.

As head of the border crossing point, the decision was mine to make. And I also knew it would be in violation of my orders, which were to protect the East German borders. But what was I to do? I was afraid, but I had to keep a clear head. I was overcome by so many feelings. Finally I gave the order; it was around 11: 20 p. m. “Open the gate!” After that, I didn’t care anymore. When I told my commanding officer, all he could say was: “What else were you sup-posed to do?” I hadn’t yet grasped the grotesque situation. In a way, I also felt glad for the people. They had fought their way through – but in a very calm and level-headed way. But it all could have ended quite differently. What would have happened if I hadn’t been the one on duty ? I don’t know. I don’t want to overemphasize the role I played. Before that we’d had the Leipzig demonstrations, the big Berlin demonstration. It simply all came to a head that night. Later, during a church service a minister thanked God that I had been on duty

Report: Ingo Petz

Harald Jäger was born the son of a blacksmith from Bautzen in 1943. He learned to be a stove builder and voluntarily enlisted in the East German border guard in 1961. He was recruited by the Ministerium für Staatssicherheit (MfS or Stasi), rose through the ranks of the socialist party, was trained at the Stasi’s secret complex, worked as an investigator, and became a specialist in “defense against terrorism.” As the officer in charge of the Bornholmer Strasse border checkpoint in Berlin, on November 9, 1989, at 11:20 p.m. he gave the decisive order to open the border between East and West Berlin. His story is told in the book “Der Mann, der die Mauer öffnete,” by Gerhard Haase-Hindenberg (Heyne, EUR 7.95).

then. I thought that was nice. That night I realized that things would never be the same again. East Germany would have to change. But I hadn’t expected unification to come so quickly. It took me a long time to get used to the new Germany; East German socialism was just too much a part of me. It took me a while to appreciate the val-ues of democracy and free speech. I remember that I didn’t root for Germany in the 1990 World Cup, and not at all in fact until 2006.

You see, in some ways I lost out on the transformation. I was un-employed, worked at a newspaper stand, later as a security guard. But I’m not bitter. In a way, I see it as compensation for all the injustice I caused to others. I’m not trying to absolve myself. That’s just how it was and I can’t change it. But I do regret that my ideals didn’t pan out. Because this system has its problems too; still, at least they talk about them here. I have no tears to shed for the Ger-man Democratic Republic. Recently I had a dream that it was all the same as before, that we had to shut up and do as we were told. I was elated to wake up and realize that those times were gone. <

26


Breakthrough in Alternative Energy

A Land of Milk, Wine AndEnergy Clean

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A Land of Milk, Wine AndEnergy Clean

Tucked away in the mountains of northern Japan, Kuzumaki is a backwater town located about 30 minutes from the nearest station. Though remote, this pasture-rich community has made a name for itself as a clean-energy producer that is helping to raise environmental awareness in Japan.

Text: Tony McNicol

Once it was a coal-mining town, but lately Kuzumaki produces a modest amount of milk and wine. A population of 10,000 dairy cows comfortably outnumber 8,000 human residents. Like many provincial areas in Japan, it is badly depopulated. Generations of children have headed down the mountains to the city and the population has halved since 1955. In fact, until quite recently, the town was in danger of disappearing completely.

Today, Kuzumaki bills itself proudly as a town of “milk, wine and clean energy.” It is the last that has made the town famous. Ten years ago local officials vowed to use green technology to re-energize the town. “We don’t have money or technology, but we have pastureland,” says Haruyuki Yoshizawa, of the local council’s Agriculture, For-estry, Environment and Energy Division. In 2003, they installed 12 1,750-kilowatt wind turbines on local land. Now the town produces far more energy – all clean – than it consumes. Solar power plants, biomass plants and a range of subsidies for ecotechnology have followed. “There was very little in Kuzumaki,” says Yoshizawa. “If we didn’t do something the town could have disappeared altogether. We therefore decided to use environmentally friendly energy.”

Kuzumaki has also become a symbol for the quandary facing Japan as a whole. Government and industry look to environmental technology for answers to economic and demographic woes. Japan is in recession, ending the longest economic expansion since World War II. In the long term, Japan will have to cope with one of the fastest aging populations in the world. No one knows how, or if, Japan’s dwindling pool of young workers will be able to support their seniors. Meanwhile, China and India threaten Japan’s economic dominance in Asia.

Yet, environmental technology could help safeguard Japan’s eco-nomic future. It is just the kind of high-tech industry at which the nation excels. “In the long term, energy saving technology will be very important to the Japanese economy,” says Ryo Nasu, of the Agency for Natural Resources and Energy at Japan’s Ministry of Economy, Trade and Industry.

Tackling Global Warming by Reducing Fossil Fuel Use

Of course, the immediate task is to tackle global warming. According to the International Energy Agency, world energy demand is set to increase 45 percent by 2030, half of this demand will stem from India and China. If that energy is generated from fossil fuels, the resultant CO2 emissions could raise global temperatures by six degrees.

Global warming was high on the agenda at this year’s G8 summit in Japan. Prime Minister Yasuo Fukuda proposed a plan to halve 2006 levels of global greenhouse gas emissions by 2050, and Japan hopes to lead the development of new technologies to make that possible. (Japan already invests a quarter more in energy technolo-gies than the United States and around eight times as much as France and Germany.)

Last March, Japan’s Ministry of Economy, Trade and Industry (METI) published a roadmap detailing 21 innovative breakthrough

technologies. Some are supply side, such as renewable, low carbon, and efficient power generation. Others are demand side, such as energy efficient electronics, fuel cells and hybrid cars. They could all help reduce dependence on fossil fuels.

Global warming isn’t the only reason for Japan to reduce fossil fuel consumption. The country’s energy self-sufficiency is one of the world’s lowest at 19 percent. (The figure is 4 percent if nuclear power, which uses imported uranium, is not included.) By comparison, Ger-many is 39 percent energy sufficient and America 70 percent. Since the 1973 “oil shock” when rising oil prices crippled the Japanese economy, the nation has been trying to wean itself off crude. In 1973, oil met 77.4 percent of Japan’s total energy needs. That figure was reduced to 48.9 percent by 2005 through the adoption of hydroelec-tric power, natural gas generation and nuclear power.

Japan Loses Ground in Solar Energy Market

Today, one of the most promising clean energy technologies is solar power. According to Solarbuzz, a solar power industry publication, the world market expanded an impressive 62 percent from 2006 to 2007. Yet, while solar power has a bright future, there are dark clouds over Japan’s efforts. Just a few years ago Japan was world leader in the photovoltaic (PV) cell installations. Now Japan has a mere 8 percent of world solar power installations versus Germany’s 47 per-cent and Spain’s 23 percent. Japan is also losing ground in the solar cell production market. China had 35 percent of world produc-tion in 2007 compared to Japan’s 26 percent.

Taichi Ozawa, a senior specialist at the New Energy Foundation in Tokyo, points the finger of blame at Japan’s subsidy system. Pur-chase subsidies for solar panel cells ended in 2005 – not long before Germany overtook Japan. The government is now preparing a new subsidy system for 2009. The price of wind power has come down dramatically with larger, more efficient turbines. Unfortunately, Japan doesn’t seem to be geographically suited to wind power.

Wind turbine installation in Japan increased five times between 2001 and 2006, but wind power output was still a 10 th of America’s and a 20th of Germany’s. It is expensive to install turbines in the mountainous terrain of Japan’s countryside and power is lost trans-mitting the electricity to the cities where it is needed. To make mat-ters worse, the wind is gusty and there are frequent typhoons. “Japan doesn’t have very good wind,” notes Ozawa ruefully.

Other green energy technologies include biomass and hydrogen. A problem with biomass is the expense and difficulty of transporting the wood, grass and grain used for fuel. And Japan has relatively little raw biomass material to begin with. On the other hand, hydro-gen can be made using electricity from renewable sources. And un-like electricity which loses power during transmission, its transpor-tation is very efficient. But hydrogen technology is young and the complex infrastructure needed for distributing hydrogen is a long way off. Japan’s most successful eco-friendly technology is prob-ably the hybrid electric-gasoline engine. Potentially, hybrid cars >

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A biogas plant extracts methane from manure, then burns it to produce electricity. Japanese companies flock to Kuzumaki to set up wind, solar and biogas generating plants.

A cafe at the “School of the Forest and the Wind.” The non-profit organization (NPO) educates local people about environmental issues and the need for seeking alternative energy sources.

could have a huge effect on energy use. About 50 percent of Japan’s total energy consumption is of oil, and half of that is drunk up by the transport sector. Toyota marketed their first hybrid car in 1997 and is the industry leader. The company has sold 481,500 vehicles in Japan and 1,193,900 overseas. They aim to sell 1 million hybrid cars annually during the 2010s, says Paul Nolasco, a spokesman at the company’s Tokyo headquarters. Hybrid cars already account for 10 percent of Toyota’s sales in the US.

Government Support Needed to Go Green

There is also a long list of less charismatic green technology where Japan leads the world. It includes innovative iron and steel making processes, ultrahigh-efficiency heat pumps and intelligent transport systems. But despite Japanese expertise, advancing the technology will require international help, says METI’s Ryo Nasu: “Japan won’t be able to develop these technologies on its own.”

Of course Japan’s reliance on coal and oil won’t end easily. At present, just 9 percent of Japan’s energy comes from renewable sources (8 percent of which is hydroelectric power). The government’s modest target is another 3 percent of non-hydroelectric renewable energy by 2030. “There are issues of stability and cost-effectiveness with renewable energy, which need to be gradually solved,” says Masami Hasegawa of the Japan Business Federation, “this is why the federation also supports nuclear power and other fuels.”

The rest of the world shares Japan’s predicament. The Interna-tional Energy Agency ( IEA) expects 80 percent of energy to come from fossil fuels in 2030; still only marginally less than today. Japan’s proposal to halve CO2 emissions requires dramatic improvements in power generation efficiency and transmission. Luckily, that is an-other area of Japanese expertise. Coal-burning plants are now only about 30 percent efficient, so there is much room for improvement.

Carbon storage is another possibility, and Japan is involved in re-search. But the technology is a long way from practical application. Another Japanese forte is energy efficiency. Since the 1970s Japan has worked hard to reduce energy usage, cutting energy use rela-tive to gross domestic product (GDP) by 37 percent between 1973 and 2003. Impressively, Japan uses half as much energy as the US for the same economic output, and an eighth as much as China. The government is aiming for a further 30 percent drop by 2030.

The shift to green energy requires both national and local action. In Kuzumaki they are hoping for more government help. Haruyuki Yoshizawa points out that in other countries legislation has forced power companies to buy renewable electricity at high prices. But in Japan the price is still too low, he says.

Raising Environment Awareness at Home and Abroad

Meanwhile, Kuzumaki is trying to increase grassroots understanding of green issues. “We wanted a form of green energy that the local people could get close to,” says Yoshizawa as he stands by a solar panel array installed at Kuzumaki Junior High School. The panels were added when the school was rebuilt in 2000. “Now the children have an understanding of new energy, so they take it for granted that energy must be saved,” says Yoshizawa.

Kuzumaki town is helping to raise environmental awareness in Japan and abroad. Over the last decade, tourism to the town has doubled to nearly half a million visitors a year. Kuzumaki’s mayor Shigeo Suzuki says they pass on any information they can to the 300 groups who visit the city hall each year, many from overseas.

Kuzumaki welcomes everyone who is interested in sustainable living to visit – or even to stay for good. Says mayor Suzuki: “Anyone who can appreciate what we are doing here is welcome – it doesn’t matter what country they are from.” <


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The Elite in the Elite Report

The Elite Report editorial team looked at 350 banks and asset managers in German-speaking countries. Only 53 gained a com-mendation. The Credit Suisse Private Banking divisions in Ger-many and Switzerland gained – not for the first time – the highest distinction of “summa cum laude.” www.elitereport.de

Geneva

World Cup Show Jumping

Credit Suisse is the new main sponsor of the CHI World Cup show jumping competition, which takes place in Geneva in mid-December each year. The competition winner was the Canadian Eric Lamaze, with Swiss rider Steve Guerdat as runner-up. The Grand Prix Credit Suisse was awarded to the American Laura Kraut. Under the auspices of the Jockey Club, the event also featured five trials for young riders competing for the Prix Credit Suisse. The winners were Loic Mordasini, Vanessa Mathieu, Sébastian Triollet, Prisca Kohli and Marina Emery. www.concours-hippique.ch

St. Moritz

White Turf Horse Race

White Turf is more than just a horse race on snow and ice. On Febru- ary 8, 15 and 22, the frozen lake of St. Moritz will be the venue for what has been a top-class sporting and social event for over a century. www.whiteturf.ch

Riyadh

Presence in Saudi Arabia Expanded

Credit Suisse has been doing busi-ness in the Middle East for four decades and currently has offices in Dubai, Abu Dhabi, Doha, Riyadh, Beirut, Cairo and Manama. In 2005, it established a presence in Saudi Arabia by entering into a joint ven-ture with local partners in the Saudi Swiss Securities consortium. Credit Suisse has now acquired a majority holding in Saudi Swiss Securities. The venture, renamed Credit Suisse Saudi Arabia, has been granted a commencement letter for all activi-ties authorized by the Saudi author-ities. Bassam Yammine has been named CEO.

Salzburg

The Game of the Mighty

The 2009 edition of the Salzburg Festival will be held between July 25 and August 30 under the motto “The Game of the Mighty.” Conductor Nicolaus Harnoncourt will open the concert program with works by Franz Schubert and Joseph Strauss. The opera program, which will be presented for the first time in Amer-ican and British cinemas, includes a homage to composers George Frederic Handel (“Theodora”) and Joseph Haydn (“Armida”), who died 250 and 200 years ago, respec-tively. Claus Guth will direct a new production of Wolfgang Amadeus Mozart’s “Così fan tutte.”www.salzburgerfestspiele.at

Credit SuisseBusiness Sponsorship In Society

Singapore

A Safe Haven for Clients

At the Private Banker International Wealth Management Summit 2008, Credit Suisse won the “Outstanding Global Private Bank Award” and the “Outstanding Business and En-trepreneur’s Private Bank Award” and was a finalist in three other award categories. “Unlike its rivals in Switzerland and elsewhere, Credit Suisse has escaped the worst of the mauling and is undergoing rapid expansion of its wealth manage-ment capabilities,” said John Evans, managing editor of Private Banker International and a senior member of the judging panel. “It has been exceptionally well placed to be among the favored homes for client funds as the credit crisis unfolds.”www.privatebankerinternational.com

Credit Suisse/Osec Forum for Swiss Export IndustryAt the beginning of the year, Osec and Credit Suisse jointly launched a project-related partnership. As part of this cooperation, the bank is sponsoring a forum for the Swiss export industry. This event, which is taking place in Zurich on April 2–3, 2009, will focus on the US market. According to Osec CEO Daniel Küng, “Credit Suisse is a strong partner that is not only a leading provider of global banking solutions but is also firmly anchored in the Swiss SME landscape. We are convinced that the joint utilization of synergies will benefit Swiss SMEs in issues relating to internationalization.”

www.osec.ch www.aussenwirtschaftsforum.ch

8Timesrunning, Credit Suisse has been presented with the “Best Trade Finance Bank” award in Washington.

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Many will look forward to the return of conductor Nicolaus Harnoncourt.


Credit Suisse30

Nassim Taleb, the author of “The Black Swan,” Dennis Tito, the world’s first space tourist, Giles Keating, head of Credit Suisse’s Private Banking research, and Maria Dolores Lamas, head of Credit Suisse’s Financial Products and Investment Advisory, took part in the podium discussion closing the 2008 edition of the Credit Suisse Thought Leadership Conference.

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A Tycoon in SpaceCalifornia financier, Dennis Tito, became the first paying pas-senger in space in 2001. At age 60, he was the oldest person to be launched aboard a Russian rocket. It took him 44 years and a multimillion-dollar investment to experience a space flight, and from his perspective it was worth his time and money. His aspiration to reach space was sparked in 1957 when the Soviet Union launched Sputnik, the world’s first artificial satellite. Serious about his goal, Tito went on to earn degrees in aerospace engineering and worked as a space scientist, designing flight trajectories for three historic Mariner probes in the sixties. He went on to work at NASA’s Jet Propulsion Laboratory, before changing gears in 1972 to found Wilshire Associates, through which he made his fortune analyzing stock markets. “I was getting older and hadn’t given up on my dream, but I knew that at my age it would have to be a commercial flight,” said the fit 68-year- old at the conference. “The Russian financial crisis was my opportunity. I found myself in negotiations with them in 2000, and the experience paid off for both of us.” With a reported 20-million-dollar investment, along with eight months of training with Russian cosmonauts, Tito was able to spend seven days at the Russian International Space Station.

“The concept behind the Thought Leadership Conference is to bring great minds together,” explained Maria Dolores Lamas, head of Financial Products and Investment Advisory, who hosted the event. “We’ve invited independent thinkers, people who are beyond the mainstream and have expanded their horizons, to tell their stories in the hope to help our guests expand their own horizons and look beyond the current crisis.”

Nassim Taleb, the author of the controversial bestseller “The Black Swan,” and the CEO of Wilshire Associates, Dennis Tito, better known as being the world’s first paying space traveler in 2001, featured as guest speakers to ensure a lively questionandanswer session later in the program.

Taleb put forward his divisive views on economic models. “The past cannot predict future investment risks,” he said. He also

maintained that existing economic models used by financial institutions and central banks are consequently basically useless. “The truth is that we have no idea why stock markets go up or down on any given day, and whatever reason we give is sure to be grossly simplified, if not flat out wrong.” Taleb believes that bankers, economists and historians overestimate the value of rational explanations of past data, and underestimate the prevalence of randomness, or black swans, in that data. He believes the current financial crisis is a white swan, not a black swan, and it was something he forecasted in his book, which was published in 2007. Back then he wrote: “The financial ecology is swelling into gigantic, incestuous, bureaucratic banks –

when one fails, they all fall. The governmentsponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup.”

Transformation Is Inevitable

The world is currently undergoing changes at a scale which has never been seen before, said Credit Suisse’s head of Private Banking Investment Services & Products, Arthur Vayloyan. “The market capitalization of the toy car manufacturer Mattel is suddenly larger than that of General Motors, Chrysler and Ford combined. Global players, such as Google, can now emerge in just a decade,” Vayloyan said. “Companies from emerging

economies such as India and Mexico are today taking over companies in countries which previously ruled them,” he added.

Giles Keating, Credit Suisse’s head of Private Banking research, echoed these comments, referring to the rapidly changing shape of the world economy in the aftermath of the credit crisis. In 1952, the US and Europe made up more than half of the global gross domestic product (GDP), with India’s and China’s combined GDP making up less than a 10th. Last year, the US and Europe still dominated, but India and China are both edging up. By 2030, Credit Suisse expects that the US and Europe will only make up just over a quarter of global GDP, at 17 and 15 percent, respectively. China will by then have caught up and rival the US with an 18 percent of global GDP, while India’s will make up about a 10th. “Chinese consumers will be a key component of the global growth engine in the years to come, while US consumers won’t be part of it,” Keating said. Chinese, Russian and Brazilian annual retail sales adjusted for inflation will post doubledigit growth, while the US consumer machine will move into negative territory, Keating forecast. Dorothée Enskog and Michèle Bodmer

Thought Leaders Discuss Global RebalancingThe Credit Suisse Thought Leadership Conference is organized on an annual basis for the bank’s key clients. This year’s event, held in Zurich on November 25, focused on the topic of “global rebalancing.”

“ The truth is that we have no idea why stock markets go up or down on any given day …”Nassim Taleb


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Bulletin: Why are the works of Picasso so universally appealing?

Christopher Riopelle: For 75 years, he showed an unbroken creativity in countless numbers of styles and was constantly able to reinvent himself. It is that kind of endless creativity, combined with his life’s story that fascinates people. Just as the dramatic biography of van Gogh keeps to fascinate people, so too does that of Picasso. His life is deeply intriguing because of the places he visited, the people he knew and, of course, his love life. When you combine creative art with an interesting figure, you get exhibitions that the public flocks to.Is Picasso’s love of women also apparent in this exhibition?

It is central to it. Throughout his life, one can almost count off the decades by the significant woman or women in his life. They also served as muses and models, whom he painted voraciously. The exhibition touches on almost all of the women in his life. Because the biographical component of his work is high, it also becomes the central thread of the story of the exhibition. The title of the exhibit is “Picasso Challenging the Past.” Why did you choose that particular title?

Picasso’s father, José Ruiz Blasco, was an artist, a teacher at the San Telmo School of Fine Arts and the curator of the Malaga Municipal Museum. Pablo Picasso knew the Western painting tradition intimately, because he was visiting museums from the time he was child. As a young man he was challenging this tradition not only in terms of being influenced by it, but by saying, “I can do better than this. Goya, El Greco, or Velásquez are pretty marvelous, but look what I can do.” One could say he is paying homage to the masters of the past by taking them on in battle. What kind of experience would you like visitors of the exhibit to have?

I would like them to have a double experience. The first is to fully experience the extraordinary creativity of Picasso, who was able to invent pictures of such dynamism, color and drama, throughout his life. The second is to hopefully develop a renewed interest in the European painting tradition, because that tradition remained alive for Picasso. In one of his interviews, Picasso once said that the old art is as alive now as it ever was. That sense of the old masters being alive to Picasso as he made his art, is an inspiration. What are some of the highlights?

We’ve been very lucky in our loans. I think some of the selfportraits are pretty amazing, including the socalled “Yo” – or me in Spanish – which was painted in 1901. The Museum of Modern Art in New York is lending that to us. In this selfportrait, Picasso is a young man, who just turned 20, who painted an image of such self confidence. There are major masterpieces in each of the rooms, which are divided up thematically. Could you walk me through the themes of the rooms you mentioned?

The first room is “The Image of the Artist,” and it features Picasso’s self portraits, which he painted throughout his career. It also includes some images that are not selfportraits per se, but in which he is present in some form, such as through figures standing in for him. They are images of how he chooses to present himself as an artist.

The second room is called “Models and Muses: The Nude.” This room is full of images of the female nude, which is one of the constant themes of European painting and of Picasso’s career.

The third room, “Characters and Types,” has paintings of mostly male figures of every age, including his friends that continually reappear in his art, for example

his lifelong friend Jaime Sabartés. These male figures are surrogate Picassos and are images of what he thought about himself as a man.

The fourth room again is “Models and Muses: The Pensive Sitter,” for the most part it is paintings of female figures lost in thought. Unlike the nudes that are luxuriating in their nudity, these women are often very pensive, thoughtful and private. This is the other side of his lifelong depiction of women with their own inner life.

Room five is “Still Life.” Throughout his life, still life was one of the themes where Picasso allowed himself to be most experimental. Room six is called “Variations” and that is something quite specific and unique.What makes the “Variations” room so unique?

Beginning in the early 1950s and lasting for about a decade, Picasso painted a series of pictures of the great masterpieces of European painting that most interested him, such as Diego Velasquez’s “Las Meninas,” Eugène Delacroix’s “Women of Algiers” and Edouard Manet’s “The Luncheon on the Grass.” He painted in intense bursts of creativity variations on these pictures. However, he changed everything in terms of color, scale and size. During this period, he specifically addresses the European tradition he comes from.How long does it take to put together an exhibition like this?

We realized that we might be able to do this exhibit over a year ago when we had learned there was a related, although different exhibition in Paris called “Picasso et les Maîtres.” This exhibit also examined the inspiration Picasso drew from the old masters. We decided we would like to create a variation of this exhibition, but we were late in the game. We jumped in with both feet and organized everything in 14 months, which for an exhibition of this ambition is very little. And how many people are involved?

Within the National Gallery, virtually every department is involved. Myself and my colleague Anne Robins are the curators responsible for the exhibit within the gallery, but we are working with a group of scholars in the UK and US who are writing “Picasso: Challenging the Past” with us. We are also collaborating with our colleagues at le Musée National Picasso, le Louvre and le Musée d’Orsay in France.

Picasso:Challenging the PastOn February 25, the Sainsbury Wing of the London National Gallery will showcase about 70 Picasso paintings, including many from private collections. This is the second exhibit that Credit Suisse has funded as a partner of the National Gallery. Curator Christopher Riopelle shares his insights on the Spanish artist and the highlights of the exhibit.

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How many works are there?There are approximately 70 paintings

and 15 prints. One thing I didn’t mention is that in a room, which is free to the public, there is an exhibition of Picasso’s prints. He was one of the great print makers and he also examined the themes of great master paintings in his prints.You mentioned that all of the pieces are on loan. What are some of the sources?

The National Gallery only has one Picasso in its permanent collection and one on loan, so the loans are coming from all around the world. Museums in Paris, Barcelona, Zurich, San Francisco and Cincinnati, to name a few, have been very generous. A great deal of the artwork stem from private collections in the US and Europe. These are paintings that are still owned by members of Picasso’s family. We cast a very wide net for this exhibit, and people will not have seen a number of the pictures, especially the ones coming from private collections, before. In fact, there will be some pleasant surprises even for people who know Picasso very well.What does it mean for the National Gallery to have an exhibit like this?

It is very important for us, because we are slowly moving the permanent collection forward into the 20th century. Looking at Picasso on this theme of his relationship to the past is the perfect subject for us to suggest the ways in which 20thcentury painting carries on from the older traditions. This exhibit is a very important statement for us on how we see 20thcentury art relating to the core collection of the National Gallery.

We are inviting people after the exhibit to go into the National Gallery and look at the collection of the old master paintings through the eyes of Picasso, who visited the museum in 1919 and again in 1951. The exhibit will hopefully inspire people to walk through our galleries and imagine which pictures Picasso would have been drawn to. We will leave enough clues in the exhibition to get people thinking along those directions. Michèle Bodmer

Above “Man with a Straw Hat and an Ice Cream Cone,” oil on canvas, painted in 1938, belongs to the Musée Picasso in Paris. Below left “Woman with Turkish headdress,” oil on canvas, painted in 1955, normally hangs at the Centre Georges Pompidou’s Musée national d’art moderne in Paris. Below right “Gustave Coquiot,” oil on canvas, painted in 1901, is also owned by the Musée national d’art moderne in Paris.

Pablo Picasso, Man with a Straw Hat and an Ice Cream Cone, 1938, Musée Picasso, Paris (MP174), © RMN/JeanGilles Berizzi/Succession Picasso/ DACS 2009 | Pablo Picasso, Woman with Turkish headdress, 1955, oil on canvas, 116 x 89 cm, Centre Georges Pompidou, Paris, Musée national d’ar t moderne, Donation Louise et Michel Leir is 1984 (AM1984– 637), © Photo CNAC/MNAM, Dist. RMN/Béatr ice Hatala/Succession Picasso/DACS 2009 | Pablo Picasso, Gustave Coquiot, 1901, oil on canvas, 100 x 81 cm, Centre Georges Pompidou, Paris, Musée national d’ar t moderne, Don de Mme Gustave Coquiot 1933 (JP652P), © CNAC/MNAM, Dist. RMN. Photo Béatrice Hatala/Succession Picasso/DACS 2009

Visiting Information Opening times: February 25–June 7, 2009 10 am–6 pm daily, 10 am–9 pm Fridays, 10 am–8 pm Saturdays Location: London, National Gallery, Sainsbury Wing


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Bulletin: The Black List Project consists of a movie, a book, an exhibition. Do the different parts depend on each other or do they work as independent pieces?

Elvis Mitchell: Actually, they work as independent pieces.

Timothy Greenfield-Sanders: I agree. It’s a completely different experience.

Elvis Mitchell: A completely different experience, but also complementary expe-rience. Let’s take the exhibition. I think that people will be moved by the power of the pictures. They are incredibly dramatic on their own terms. What you see in those faces and the bearing of the subjects is a stand-alone piece. It will make a lot of people curious about the movie but the por-traits in themselves are as important a piece of the storytelling as the portraits in the movie.The portraits are very powerful, in the movie as well as on paper. How did you achieve such unadorned candor?

Elvis Mitchell: We let these people speak for and about themselves. In any documentary about the black experience in this country, you have an expert putting things into perspective. But we didn’t want academic experts talking about something that happened in 1966. We didn’t want that kind of outside observation. We thought that it would detract from the emo-tional power. Since we’ve got people speaking to the camera, we don’t need an audience surrogate. The audience can be its own surrogate.

Timothy Greenfield-Sanders: What worked to our advantage is the fact that we weren’t looking for any kinds of specifics. We just wanted to get each of the subjects to talk about his or her own experience as

an African-American. That was liberating and challenging. Part of the intimacy in the movie is due to Elvis’s amazing ability to bring people out, to let them feel comfort-able and let them talk about themselves. I tried to achieve the same when I had the participants sit for a portrait. I wanted the portraits to be simple, unadorned, honest.How did you select the interviewees?

Elvis Mitchell: I knew that we had to start the movie with Slash (the former lead guitarist of Guns N’ Roses), in order to make it feel as different as we could make it from any other film on black experience. We had to pick somebody that no one would expect, as many people don’t even know that Slash is black. And from there on we just tried to get people from as many different areas as possible to depict the totality of the African-American community.How difficult was it to have the interview partners agree to participate?

Timothy Greenfield-Sanders: It was an organic process. Sometimes subjects needed one phone call. Others were very difficult to convince. We started with friends. With Thelma Golden, for example, who runs the Studio Museum in Harlem. And Toni Morrison, who by the way, was the person who introduced the basic idea to me.Can you tell us a bit more about that ?

Timothy Greenfield-Sanders: One day, when Toni and I were having lunch, she said to me that we should do a book on divas. She had written the libretto for the opera “Margaret Garner” and I was shooting the stars of the opera. Toni mentioned that she had auditioned many truly amazing black women. And that we should do a book about them. “I write the texts and you can

do the portraits,” she said. A book with Toni Morrison, wow, that would be pretty inter-esting, I thought. Perhaps it could even be a book about the black experience.

When Elvis and I had lunch a few days later I mentioned the idea. And it was like fireworks. We were shouting ideas and names at each other. And by the end of our lunch we had the whole project lined out on a stack of napkins: the book, the film, the portrait exhibition, over 100 possible subjects, plus all the things that we wanted it to achieve. We just couldn’t believe that no one had done it before.What made you personally think that such a project is necessary?

Elvis Mitchell: I’m a film critic. I see movies all the time. But I have never seen a film that was about the pleasure African-Americans get from achievement. A film that doesn’t sentimentalize it, that isn’t about black victimhood, that isn’t saying we should follow this example or that example. For me, the Black List Project is about pleasure, the pleasure that comes from triumph.

Timothy Greenfield-Sanders: Also, when we first thought of this, it was pre-Barack Obama. I wasn’t sure what a black audience might feel about such a project, but Elvis was convinced that it would be powerful. And he was right.Do the people you portrayed share a common denominator besides being African-Americans?

Elvis Mitchell: Definitely. It’s the fact that you can’t slow these people down. They all refuse to be stopped by the kind of obstacles that are often in front of African- Americans. And these obstacles truly exist.You have somebody like Slash, who at

An Exhibition of Power And CandorWith their powerful Black List Project, writer Elvis Mitchell and filmmaker Timothy Greenfield- Sanders capture the stories of a group of leading African-Americans through a film and a traveling portrait exhibition. The result is a singular view that could provide a model for many more Black List Projects to come. Credit Suisse sponsors the exhibition and its national tour.

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1 Toni Morrison, writer and Nobel Prize winner. 2 Louis Gossett, Jr., actor. 3 Reverend Al Sharpton, Baptist minister, political and civil rights/social justice activist. 4 Suzan-Lori Parks, playwright.

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5 Colin Powell, former Secretary of State. 6 Serena Williams, professional tennis player. 7 Dawn Staley, basketball player and coach. 8 Keenan Ivory Wayans, actor, comedian, director and writer.

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the time didn’t even think of himself in terms of being a black person, and still he finally ran into these obstacles. The question is: How do you collect yourself and keep moving after that happens?And how do you keep moving?

Elvis Mitchell: But that’s it – they just keep on moving anyway, no matter what. And to hear people like Chris Rock and Colin Powell and Thelma Golden talk about what was missing in their own lives, what kind of obstacles they had to overcome, and how they kept and keep going anyway is impressive. Hopefully they serve as a kind of role model.Were you surprised by the stories?

Timothy Greenfield-Sanders: Well, we obviously had thought a lot about what these people might say. But there were some statements that came as a total sur-prise. For example, Faye Wattleton says that she wished her daughter had grown up in a segregated society, the way she had. Why ? Because of the diversity of role mod-els that were around her when she herself grew up: the doctors, the house painter, the lawyer, the minister, all of them living in one community, setting an example. She wished her daughter had had that experi-ence. That shocked me. I always thought that integration was a good thing and there was nothing even remotely negative about it. It made me realize how complicated reality really is.Where is the project going from here?

Elvis Mitchell: Volume two is in the works with HBO. And I think the portraits will travel for a long time, to many museums. And I would hope that this all is a prototype for what could be a much bigger project. The “Black List” could also be a Hispanic list. It could be soldiers talking about their experience in the war. It could be many things. It’s really about people telling their stories. That was the idea. We are still very focused on this first part, but yes, we have big plans: In fact, the name of our Web site is onemillionstories.org. Marcus Balogh

The Black List ProjectThe Black List Project was conceived by photographer and filmmaker Timothy Greenfield-Sanders and Elvis Mitchell, public radio host and former New York Times film critic. It consists of a number of elements including a film, a book, a traveling portrait exhibition and an educational initiative.

The project reveals the diverse experiences of being black in the US through interviews and portrait sessions with leading African-American figures. Among the luminaries from the world of sports, politics and arts are Nobel Prize winner Toni Morrison, Academy Award winner Louis Gossett, Jr., Colin Powell, the former US Secre-tary of State and the first and so far the only African-American to serve on the Joint Chiefs of Staff, and the comedian Chris Rock.

The movie, “The Black List: Volume One,” held its world premiere at 2008’s Sundance Film Festival. On August 25, it aired on HBO as part of the TV channel’s documentary film series. The images, both photographic and filmed, are part of a multi-city museum exhibition. It will be on view at the Brooklyn Museum in New York City until March 29, 2009. Both the exhibition and national tour are sponsored by Credit Suisse.

The film is a seamless collage of clip-like portraits, each opening a window on the tribulations and joys of achieving success in the US. The stories are peppered with sharp-witted observations and moving memories, the camera focusing solely on the narrators, direct and observing, but never intruding or indiscreet.

Twenty-one clips, each just a few minutes long, one and a half hours of uninterrupted talk: This could be overwhelming. Or boring. It is neither. The fast paced cut of the movie, the intensity of the charac-ters, the depth of their emotional candidness and the diversity of their stories and their points of view exert a mesmerizing force.

While filming “The Black List: Volume One,” photographer Timothy Greenfield-Sanders invited each participant to sit for a portrait. Shot on a large-format camera, the images were printed as large-scale color photographs. The result is a powerful, captivating collection of images, as exciting and as touching as the movie.

Keenan Ivory Wayans, Elvis Mitchell and Timothy Greenfield-Sanders (from left to right).


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Successful Charity Auction Rounds Off Art TourEight months and seven cities after its launch, a global tour of the Credit Suisse international “Art & Entrepreneurship” exhibition reached its finale in London on November 24 with a charity auction of pieces from the show, contributed by some of the world’s most noteworthy new artists.

1 The task of the auctioneer of the Art & Entrepreneurship auction, Simon de Pury, was to sell 40 works by 19 artists from 16 countries to raise money for the Room to Read charity. The auction raised approximately 160,000 dollars out of which half will go to Room to Read.

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Photos: Miranda Parry, MPP Image Creation

The auction, held in the stylish hall at the London office of Phillips de Pury & Company, raised around 160,000 dollars (105,000 pounds), as flamboyant auctioneer Simon de Pury encouraged a packed room, including many Credit Suisse clients, to part with their money for charity. Anonymous telephone bids added to the drama of the occasion, as asking prices escalated rapidly.Half of the total raised was donated to

Room to Read, a not-for-profit organization that provides access to education in developing countries through the funding of new libraries, schools and scholarships for girls. The remainder went to the artists themselves.“Credit Suisse has worked together with

Room to Read to provide education for those in need for several years. We are delighted that we have been able to donate half of the proceeds of this innovative exhibition to this worthy organization,” James Leigh-Pemberton, Chief Executive of Credit Suisse in the United Kingdom, said.

Celebrating Up-and-Coming Artists

The exhibition took 40 works by 19 artists from 16 countries to Dubai, New York, Berlin, Moscow, Geneva, Milan and London, providing global exposure for upandcoming talent, as well as some well-established names. They created art for the exhibition based on a brief to focus on five core values of entrepreneurship, as defined in a Credit Suisse client survey – vision, knowledge, network, family and social responsibility. The works they came up with ranged from oil paintings and sculptures to media installations and collages. The highlight of the auction was the 50,000

pound (77,000 dollar) sale of “Metropolis,” a painting by Jiten Thukral and Sumir Tagra, the New Delhi-based collaborative artists, whose works are already highly sought after. Another notable work that raised sizeable sums for Room to Read included a painting from Michael Bauer which sold for 15,000 pounds (23,000 dollars).Other artists whose works were on sale

included Allora & Calzadilla, Michael Bauer, Heman Chong, Latifa Echakhch, Cao Fei, Nicola Gobbetto, Gonzalez & Russom, Fabian Marti, Tzu Nyen Ho, Ester Partegàs, Pavel Pepperstein, MaiThu Perret, André Pretorius, David Benjamin Sherry, Matthew Smith and Miessen & Ploughfields.“It’s not the best time to be carrying out an

auction of young artists, so we are extremely happy that we had such an incredible

2 The works put up for sale were created by up-and-coming artists and well-established names. 3 The artists created their works based on the five values of entrepreneurship defined by Credit Suisse; vision, knowledge, network, family and social responsibility. 4 Matthew Smith’s “Duvet with Stand No. 7.”

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Photos: Miranda Parry, MPP Image Creation | Marco Borggreve

5 James Leigh-Pemberton, CEO of Credit Suisse United Kingdom, was pleased by the public’s interest. 6 John Ridding, CEO Financial Times and board member of Room to Read, talking with Bella Burn, head of Philanthropy at Credit Suisse. 7 A library in Kampong Chhnang, Cambodia, established thanks to Room to Read.

response. Some really important collectors bought major pieces,” says Michelle Nicol, the art historian who curated the exhibition.

Funds Raised Will Go to Building Schools

Louise Holmes, Director for Europe at Room to Read, said the funds raised by the auction were a very welcome addition to the financial and logistical support that Credit Suisse has provided for Room to Read.

“Credit Suisse has provided multimillion pounds grant and other assistance to the organization over recent years, which means we can build schools where they are really needed. To have Credit Suisse on your side

in difficult economic times has been a great help,” she said.

Founded by former Microsoft executive John Wood, Room to Read currently operates in Cambodia, India, Laos, Nepal, South Africa, Sri Lanka, Vietnam and Zambia. It is also seeking to expand into other countries where the government is interested in working with it on improving education.The organization’s strategy of running a

lean administrative operation ensures that it maximizes the proportion of the money it raises that goes into projects on the ground – a strong point in favor of supporting the organization for Credit Suisse when it forged ties

with Room to Read. The organization is part of the bank’s Global Education Initiative that promotes and supports the education of disadvantaged young people in selected countries throughout Africa, South America and Asia Pacific.

Education Helps to Fight Poverty

Carefully targeted spending by Room to Read means donations go a long way. Just 4,000 dollars is enough for the organization to build and stock a village library, and only 25,000 dollars is needed to build an entire school.

Meanwhile, 2,500 dollars is enough to fund a long-term scholarship for a girl – the focus is on girls, as they form two-thirds of the 700 million children around the world who are not in education. That means the 80,000 dollars or so raised for Room to Read through the auction could be used to build 20 libraries, three schools or provide scholarships for more than 30 girls.

“Education is one of the most effective ways to fight poverty,” said Holmes. “If you teach a girl to read, then she is going to teach her children to read.”A pivotal plank of Room to Read’s ap

proach is that local communities are encouraged to participate in all aspects of building their libraries and schools. The charity asks local people to meet 15 percent of the costs of building work either through funding or, as widely happens, through the provision of their time and labor.“Getting local people involved in this way

not only gives them a stake in the long-term success of projects, it also gives them an incentive to finish the job quickly, so their children can start to benefit educationally as soon as possible.” Holmes said. Ian Lewis

“Education is one of the most effective ways to fight poverty.”Louise Holmes, Director for Europe at Room to Read

Credit Suisse is convinced that corporate responsibility toward the environment and society at large is a key factor for economic success.

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Breaking Through On the Classical Scene

Martin Helmchen started to play the piano at the age of six and only after a couple of les-sons it became clear to him that he wanted to become a musician. “I was not only inspired by the recordings of piano concerts and sym-phonies I listened to, but also by attending the concerts of young musicians,” Helmchen recalls. He went on with his musical studies at Berlin’s Hanns Eisler Academy and Han-nover’s Hochschule für Musik und Theater.

“But breaking through on the classical scene is a long-term process,” the 26-year- old German pianist underlines. “In addition

to musical talent, you need to have a strong stage presence and be able to communicate with the public. I know of musicians who play wonderfully well when alone, but who loose their abilities when performing in front of an audience.” Nowadays, skillfulness in promot-ing and positioning yourself also plays an important part in a musician’s success. “The world of classical music is copying so much from the world of pop, working with agents, marketing campaigns, international tours … Some musicians seem to spend most of their time with their agents, losing the crucial and

fundamental connection to music. That is definitely going in the wrong direction. The music must remain any musician’s focal point, just as practicing, listening to music and play-ing chamber music is important.” Helmchen himself is not immune to this “popification” trend. He, just as the majority of professional classical music soloists, works together with an agent and has a fully booked concert agenda into 2010, if not 2011, including tours across Europe, the Americas and Asia.

The highlight in Helmchen’s solo career as pianist is the concert held with the Vienna Philharmonic Orchestra in 2006, within the framework of the Lucerne Festival. “It is the most beautiful concert I have ever held. To be able to play with the Vienna Philharmonic is a very special feeling, as they perform rela-tively rarely together with soloists. It was such a rare opportunity, that I really felt I had reached a new stage in my musical career,” Helmchen explains. He was given the chance to play with this illustrious orchestra as the part of the Credit Suisse Young Artist Award won in September 2006. “The pressure just before the concert was very big, but it has turned into a positive confirmation, a moment which today motivates me and which I am very proud of.” In some ways, the performance of Schumann’s piano concerto with the Vienna Philharmonic was Helmchen’s international breakthrough. “I had not recorded any CDs as soloist before that concert, and I have been called up and invited to hold concerts by people who refer to my performance that evening. They were either in the concert hall, or have listened to a recording of it.” He has since performed with orchestras such as the London Philharmonic Orchestra and the Deutsche Sinfonie-Orchester Berlin, working with directors including Philippe Herreweghe and Kurt Masur. Helmchen also finds the time to record CDs, with his last release featuring a Schubert piano sonata and six Moments musicaux. Dorothée Enskog

“Breaking through on the classical scene is a long-term process,” says pianist Martin Helmchen. “In addition to musical talent, you need to be able to communicate with the public and work with people marketing your career.” Helmchen is the laureate of the Credit Suisse Young Artist Award 2006, which spurred his career internationally.

Credit Suisse Young Artist Award2008 Antoine Tamestit, viola2006 Martin Helmchen, piano2004 Sol Gabetta, cello

Prix Credit Suisse Jeunes Solistes2009 Andriy Dragan, piano2007 AnielaFrey,flute2005 Tecchler Trio: Benjamin Engeli, piano, Esther Hoppe, violin, Maximilian Hornung, cello

The 26-year-old pianist Martin Helmchen has managed to break through on the international classical scene, touring around the globe and working with renown directors such as Kurt Masur and Marek Janowski.


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Some 1,000 students at Central Park East, a public school located in East Harlem, New York, can now play in a safe new playground featuring play equipment, game tables as well as a track-and-field area, thanks in part to the donations of Credit Suisse employees.

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Fewer than half of New York City’s public elementary schools have usable playgrounds for the 628,000 students they serve. Many schools have little more than barren asphalt lots for play areas. Currently, more than 90 percent of New York City neighborhoods fail to meet the commonly accepted standard of 2.5 acres of parkland per 1,000 residents. The need for playgrounds and parks is most acute in low-income, high-density neighbor-hoods where children have few recreational alternatives. The Trust for Public Land’s (TPL) Parks for People program was created to address this problem in order to ensure that everyone – in particular, every child – has access to a park, playground or natural area close to their homes.

Nearly 4,000 Credit Suisse employees made financial contributions to TPL in 2007, which were matched by funds from the Credit Suisse Americas Foundation, for a total gift of 1.6 million dollars. This support was pro-vided as part of the annual Holiday Charity Initiative (see box). Over the past two years, the initiative has generated over 3 million dollars in donations from employees as well as matching funds from the Credit Suisse Americas Foundation. The foundation’s mis-sion is to make a difference in the communi-ties in which Credit Suisse operates.

With the support from employees, it was possible to design and construct new state-of-the-art playgrounds in five communities, where there was once only asphalt. “The result of the generosity of Credit Suisse and its employees is that thousands of children now have a close-to-home place where they can exercise both mind and muscles,” said Rose Harvey, senior vice president of TPL.

The most recently completed playground is located at Central Park East, a public school in East Harlem, New York. The Central Park East, Jackie Robinson Education Com-plex houses three schools – an elementary school, a middle school and a high school –

with a total of 1,000 students. Fifty percent of the middle school students live in foster homes or with their grandparents.

Thanks in part to donations from Credit Suisse employees, these children can enjoy a safe new playground, which features play equipment, a track-and-field area, a play-spray water feature, game tables, benches and areas for both basketball and tennis. On September 20, 2008, the park was officially opened with a dedication and community

celebration sponsored by Credit Suisse’s Alternative Investments business.

The Alternative Investments Philanthropy Committee planned the ceremony, which drew hundreds of students and community members. A host of attractions were available and free to the public – from airbrush tattoos to moonwalks, lending a carnival atmosphere to the day. The Alternative Investments em-ployees also organized, led and participated in a 3-on-3 basketball tournament and relay races. Prior to the event, they painted murals and helped plant shrubbery in the school’s courtyard with students.

“We are proud both as individuals and as employees of Credit Suisse to be part of this extraordinarily successful partnership,” said George Hornig, Chief Operating Officer of Alternative Investments. “Our staff gave from their own resources and time to help make this happen.” Anne Marie Fell and Eric Williams

A Place to Play for New York KidsA new community playground, one of five that have been sponsored by Credit Suisse’s 2007 Holiday Charity Initiative, opened in September 2008. The playground is the result of employee donations and a unique public/private partnership with New York City and the Trust for Public Land, a nonprofit land conservation organization.

Holiday Charity Initiative: New York CityCredit Suisse partnered with The Trust for Public Land (TPL) for the 2007 Holiday Charity Initiative, to bring much- needed community playgrounds to underserved areas of New York City. The Trust for Public Land is working to provide safe places to play within a 10-minute walk of every child in New York City by transforming vacant lots into vibrant playgrounds and community parks. The effort is in partnership with the City of New York as part of Mayor Bloomberg’s PlaNYC 2030. For its 2008 Holiday Charity Initiative, Credit Suisse partnered with the Robin Hood foundation to bring education opportunities to New York City students through the development of new Charter Schools to provide high-quality education to over 3,000 students. Since 1998, Robin Hood has targeted poverty in New York City by applying sound investment principles to philanthropy. Credit Suisse has been a supporter of Robin Hood through the Library Initiative, helping to build 25 new libraries in New York City public schools, since 2002.

“Our staff gave from their own resources and time to help make this happen.”George Hornig


Credit Suisse44

Volunteerism Strengthens The Corporate SpiritEric Eckholdt, executive director of the Credit Suisse Americas Foundation, believes that one of his key tasks is to turn the bank’s employees into partners through philanthropic efforts. Volunteering also plays a major part in strengthening the company’s team spirit, culture and values.

Bulletin: When did you take on the position of executive director of the foundation?

Eric Eckholdt: In 2004. For the six years prior to that, I was working for a non-governmental organization (NGO) in New York. And before that, I had spent some time working for Credit Suisse in the finance sector. So, this was a sort of homecoming for me, albeit in an entirely different capacity. What experience did you bring with you from the NGO?

I acquired a sense for the particular challenges and problems that organizations of this sort have to tackle. In NGOs, for example, I noticed that there is often a difference between the investment made in people at senior management level and those in middle management. This is what prompted our decision to finance scholarships for motivated employees of various NGOs to attend Columbia Business School’s Institute for Not-for-Profit Management. An investment in an employee at this level can have real impact on an organization, particularly since many of our community partners are relatively small.What exactly do you do at the Americas Foundation?

As we are only a small department, we work as a team in everything we do. I not only serve in the traditional role as a manager, but collaborate with my colleagues in a variety of activities from determining funding levels and volunteer strategy, to orchestrating communica-tions with our stakeholders. In this regard we endeavor to keep Credit Suisse’s employees up to date with information about our philanthropic work. I also work closely with our board of directors which is the governing body of the foundation.What’s the primary focus of the Americas Foundation’s work?

We have a particularly strong belief in the benefit of volunteerism by our employees. As well as helping to develop the community, this volunteerism helps develop our own corporate spirit. This is why we decided in 2004 that we would mainly support organizations which could utilize the help of our employees – from work with the elderly and mentoring activities through to distributing meals and food aid for the socially underprivileged. In New York alone, we have been able to recruit about a third of Credit Suisse’s employees to work as volunteers on a variety of projects. This field is hardly part of the bank’s real core business. Why do you believe that a bank should bother with philanthropy?

I think most would agree that all com-panies have some degree of social re-sponsibility, and our objective is fulfilling this responsibility by making Credit Suisse’s employees into partners in our philanthropic work. Encouraging them to take part in voluntary activities, or to take on other commitments in the community, plays an enormous part in strengthening

our company’s culture and values, and our reputation. We believe this helps us recruit and retain great people. On the surface, it might not be viewed as part of the bank’s core business; however, it is really something that contributes to our business success given it is an industry so dependent on human capital.Do you adopt a standard, global approach to philanthropy?

The need to take action varies greatly from one region to another, and the same is true of the nature and purpose of the charitable projects, so it can be difficult to have simply one global approach to philanthropy. It’s important to choose an approach that takes into account cultural and societal factors in different regions. Nevertheless, we do coordinate the region-al work collectively which strengthens our overall success globally. For example, while involving employees in charitable voluntary projects was mainly a US phenomenon to begin with, we have found that more and more employees in other Credit Suisse regions are becoming involved in community activities as well. I should mention too that Credit Suisse recently launched a series of global initia-tives that are in addition to our regional work and they speak to our shared values, irrespective of region.What is the selection procedure for the projects and organizations that Credit Suisse supports in the Americas region?

There are various possibilities for this. Sometimes, for instance, contact is made through employees who have already been involved in a particular organization on a

Credit Suisse Americas FoundationGoverned by a board of directors, the Credit Suisse Ameri-cas Foundation is focused primarily on organizations in New York City, but also extends to organizations where em-ployees live and work, including Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Mexico City, Miami, Princeton, Raleigh-Durham, San Francisco, São Paulo and Toronto. Its mission is to address societal challenges in the communi-ties in which Credit Suisse operates and where employees live and work, and to support a culture of community and inclusion within our organization. The foundation achieves its mission by leveraging its grant making with the bank’s relationships and resources, the most important of which are the time, energy and talents of Credit Suisse employees.

Credit Suisse 45


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ProfileEric Eckholdt, the executive director of the Credit Suisse Americas Foun-dation, worked six years for a non-governmental organization (NGO) prior to joining Credit Suisse. This experience gave him valuable insights into which challenges NGOs face.

personal level. These relationships are typically supported by our Mini-Grants pro-gram which enables us to react speedily to our employees’ voluntary activities by providing smaller grants from 500 dollars to up to 15,000 dollars. We then consider whether we could also participate with this organization on a larger scale. If these voluntary assignments continue for a lengthy period, we then discuss whether the program might be added to our core portfolio so that we can provide long- term support. This would mean an initial grant of 25,000 dollars.

Another important point for us is gener-ally to concentrate our support on a small number of programs: This enables us to be

a strong partner so that we can achieve something sustainable together. My team and I take a great deal of time and care to visit organizations ourselves, and to meet with organizational leadership and form strong alliances. As a result, we have been able to increase the average amount of our subsidies in New York from about 65,000 dollars per organization to almost 100,000 dollars since 2004.What are specific examples of long-term partnerships?

Credit Suisse has a long-standing part-nership with Habitat for Humanity which utilizes volunteers to build homes for the poor. Their programs operate through-out the globe and represent a positive

volunteer experience reflective of the fact that Credit Suisse employees have vol-unteered with Habitat in five different US cities in 2008 resulting in thousands of hours of volunteerism. Another long-term partner has been the Food Bank for New York City which collects foods in a warehouse for distribution to agencies providing food for disadvantaged New Yorkers. Our employees volunteer in the warehouse sorting food donations and repackaging them for distribution. Why these particular organizations?

They are programs which utilize volun-teers to deliver their mission. The programs also have effective leaderships and suc-cessfully serve those in need. Without the aid and help of volunteers neither program could accomplish its goals. Finally, they provide a first-rate volunteer experience.You mentioned that a third of all employees in New York are involved in charitable projects. Is it fairly easy to recruit employees for voluntary work?

Because by definition volunteerism is not something that is mandated by the bank, we spend a good deal of time and energy on recruitment. We recognize that communicating our programs, their impact and success to employees is critical in engaging them in our work. In a way, our volunteer managers act as community ambassadors by maintaining contact with our employees and linking them with op-portunities to fulfill real local needs. We also reach out to department teams to take part in charitable projects. The feedback we receive is generally very positive. There is often a sense of cohesion and the feeling of camaraderie that results from volunteer-ing, not to mention a valued perspective employees gain when serving those in need. The shared experience of having changed and achieved something generates a new dynamism in departments and adds to the culture of Credit Suisse. Mandana Razavi

“The shared experience of having changed and achieved something generates a new dynamism and adds to the culture of Credit Suisse.”Eric Eckholdt, executive director of Credit Suisse Americas


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Award for Two Young Researchers

Two 30-year-old scientists, Anat Frydman-Marom and Carsten Sachse, have been recognized for their research into Alzheimer’s disease: They are the recipients of the Empiris Award for Research in Brain Diseases, awarded for the third time by the Empiris charitable foundation. The cause of Alzheim-er’s disease is the deposit of protein particles – known as beta-amyloids – in the brain cells. These precursor substances pass through many stages before becoming fibrous protein structures, or fibrils. The fibrils then agglutinate to form the much-feared amyloid plaque.

Both award winners performed research on fibrils. Anat Frydman- Marom, a PhD student at the University of Tel Aviv, succeeded in preventing the formation of fibrils using a synthetic peptide. She then found an endomorphin that is pro-duced by the body and has a struc-ture comparable to the synthetic peptide. This peptide is considered to be the most promising candidate as medication to suppress the formation of fibrils. As part of his dissertation at the University of Jena, Carsten Sachse created elec-tron-microscopical high-resolution images of the fibrils. By combining expertise in biochemistry with electronic image processing he was able to transform two-dimensional images into three-dimensional structural depictions of the amyloid fibrils with a precision never previ-ously attained. Dominik Schenker

Zurich

Removing the Barriers for Disabled People

The Credit Suisse Disability Interest Forum organized a Disability Aware-ness Day on December 4, 2008 at the bank’s Uetlihof Auditorium in

Zurich. Under the title “Facing the Challenges of Everyday Life,” employees were given the opportu-nity to find out more about the problems faced by colleagues and clients with a disability, in a series of lectures. In his opening speech, Member of the Credit Suisse Group board of directors Peter F. Weibel campaigned for greater understand-ing of the concerns of disabled people. Using experiences from his own personal environment, he gave a demonstration of the obstacles faced by the disabled – obstacles which can often only be overcome with great difficulty by those affected. These include social barriers, as well as infrastruc-tural ones. A wheelchair course and other activities gave visitors the chance to experience the effects a disability can have on the every-day lives of those affected. Heinz Frei, Swiss Olympic and World Championship medalist in wheel-chair sports, explained to parti-cipants how he has coped with his disability.

Barbara Wenk, the president of pro audito schweiz, an organization for people with hearing difficulties, spoke about the fears such people have of being left out of social life. Reintegrating people who have suffered mental health problems

into society was the topic of the speech given by Christina Müller from the Swiss foundation, Integra-tion Erwerbsbeeinträchtigter ESPAS. Armando Degonda from Credit Suisse’s Health and Social Care Services then informed about the bank’s commitment to equal opportunity employment. tst

New York

Bike MS in New York City

Credit Suisse employees took to the streets on October 5, 2008, to raise awareness for multiple sclerosis. Each year, the New York chapter of the National Multiple Sclerosis Society holds a cycling event in the city allowing parti-cipants and spectators the unique

“I have over the years observed that my character has not fundamentally changed since the accident.” Heinz Frei

International Human Rights Forum Lucerne

New Partnership in Support Of Human RightsTo underscore Credit Suisse’s commitment to human rights, CEO Brady Dougan signed the UN Global Compact’s CEO Statement on Human Rights on December 10 – the 60th anniversary of the Universal Declaration of Human Rights. Additionally, Credit Suisse announced its partner-ship with the International Human Rights Forum Lucerne.

It is Credit Suisse’s firm belief that in order to sustain globalization as a positive force, it is necessary to actively identify and mitigate harmful impacts; this applies equally to the preservation of the environment and to the protection of human rights. Credit Suisse signed the UN Global Compact in 2000, which includes among its principles a commitment to “support and respect the protection of internationally proclaimed human rights,” and to “make sure [companies] are not complicit in human rights abuses.”

In its daily business as a bank, Credit Suisse has various interfaces with human rights issues: as employer (non-discrimination), as a customer of products (supplier labor standards), as lender (assess impact on people’s livelihood of projects the bank finances), as a custodian of client assets (know-your-customer), as an intermediary between our clients and local microfinance institutions (contributing to the economic development of the poor) and as a bank with business connections with countries whose governments could do more to protect and respect human rights.

“Intelligence, judgment and influence,” to quote Credit Suisse Chairman, Walter B. Kielholz, need to be ap-plied to guide the bank’s efforts to promote and ensure compliance with human rights. In this vein, Credit Suisse entered into a partnership with the International Human Rights Forum Lucerne (IHRF) – an annual public conference mainly organized by students to debate various human rights issues. The next IHRF will take place on May 5–6, 2009. Bruno Bischoff


Credit Suisse 47

experience of riding around the island of Manhattan traffic-free. Credit Suisse has had a team in the event for each of the last six years and by 2007 had raised more than 375,000 dollars for the charity. Bike MS is not a race; it is a ride open to cyclists of all levels. Every dollar raised helps friends, family

members and co-workers who suf-fer from this debilitating disease. Riders have a choice of cycling 30, 60 or 100 miles, while experiencing the metropolitan area’s many ethnic and historical neighborhoods. Paul Calello, CEO of Credit Suisse Investment Banking, showed his support for Team Credit Suisse by participating in an early morning training ride in the fitness center of the bank’s New York headquar-ters. They began training a few weeks before the event took place. “This event is such a great fit for Credit Suisse: We have a strong

culture of giving generously to important causes, and we are also highly competitive,” Calello said. Team Credit Suisse has grown from a fledgling group of 31 riders who raised 24,000 dollars in 2003 to a formidable 2008 team of 218. The team hope to have raised more than 100,000 dollars in 2008. ba

London

Event Raises 70,000 Pounds For The Place2Be

An auction held during the Credit Suisse London Metals Exchange Week Dinner on October 13 raised 70,000 pounds (about 103,000 dollars) for the charity, The Place-2Be. The Place2Be was established in 1994 in response to increasing concern about the extent and depth of emotional and behavioral diffi-culties displayed in classrooms and playgrounds in the UK. It enables therapeutic and emotional support to be provided to children in schools based on a practical model backed up by research. The charity currently works with 146 schools across the UK. mb

“We have a strong culture of giving generously to important causes.”Paul Calello

Switzerland

Best Lecturers Recognized: Credit Suisse Award For Best Teaching

The Credit Suisse Foundation awards prizes to outstanding lecturers at universities, universities of applied sciences and institutes of technology. It sponsors the Credit Suisse Award for Best Teaching, which carries prize money to the value of 10,000 Swiss francs. The award is presented to lecturers who promote and support the education of students in a special way. By making this award, the Credit Suisse Foundation aims to promote the quality of teaching and education, and to strengthen Switzerland as a science and research location. Each university is responsible for defining its selection procedure and making its nomination. The recipients of the 2008 Credit Suisse Award for Best Teaching are:

Prof. Filippo Carlo Wezel, University of TicinoDr. Marc-Joachim Wasmer, University of ZurichProf. Dr. phil. Rolf Peter Sieferle, University of St. GallenAttorney lic. iur. Stefan Unholz, University of Applied Sciences in Business Administration ZurichRené Schwok & Patrick Amey, University of GenevaProf. Patrick Thiran, EPFL LausanneDr. Alex Zbinden, Berne University of Applied SciencesProf. Dr. iur. Jörg Schmid, University of LucerneProf. Dr. Willi Gujer, ETH ZurichDr. Joachim Marti & Dr. Sajadi Reza Etemad, University of NeuchâtelProf. Dr. Daniela Finke, University of BaselIng. Paolo Ceppi, SUPSI LuganoDr. Jürg Luterbacher, University of Berne

The respective selection committees have honored them with the Credit Suisse Award for Best Teaching in recognition of their outstanding teaching methods.

Masthead

PublisherCredit SuisseP.O. Box 2CH-8070 ZurichTelephone +41 44 333 11 11Fax +41 44 332 55 55

EditorsDaniel Huber (dhu) (editor-in-chief), Marcus Balogh (ba), Michèle Bodmer (mb) (head international edition, deputy editor-in-chief), Dorothée Enskog (de), Regula Gerber (rg), Mandana Razavi (mar), Andreas Schiendorfer (schi), Teva Streich (tst)

[email protected]

Contributors to this issueBruno Bischoff, Ute Eberle, Anne Marie Fell, Giles Keating, Ian Lewis, Toni McNicol, Olivier P. Müller, Uwe Neumann, Ingo Petz, Mathias Plüss, Matthew Rees, Ruth Reichstein, Dominik Schenker, Eric Williams

Internetwww.credit-suisse.com/infocus

MarketingVeronica Zimnic (vz)

Proofreadingtext control, Zurich

TranslationsCredit Suisse Language Services

Design/Layoutwww.arnold.inhaltundform.com: Arno Bandli, Monika Häfl iger, Petra Siegenthaler, Petra Feusi (project management)

AdvertisingVeronica Zimnic (vz), telephone +41 44 333 35 31,[email protected]

Certifi ed WEMF circulation in 2008148,050

ISSN registrationISSN 1662-4572

PrintingNZZ Fretz AG/Zollikofer AG

Editorial committeeRené Buholzer (Head of Public Policy), Monika Dunant (Head of Communications Private Banking), Urs P. Gauch (Head of Corporate Clients Switzerland – Large Corporates), Fritz Gutbrodt (Head of Chairman’s Offi ce), Angelika Jahn (Investment Services & Products), Martin Lanz (Economic Research), Hubert Lienhard (Asset Management Distribution Services), Andrés Luther (Head of Group Communications), Charles Naylor (Head of Corporate Commu nications), Christian Vonesch (Head of Private & Business Banking Aarau)

114th year of publication4 issues per year in English, 5 issues per year in German, French and Italian. Reprinting of texts permitted with acknowledgement of source (Credit Suisse Bulletin).

Changes of addressPlease send notifi cation in writing, accompanied by the original envelope, to your Credit Suisse branch or to: Credit Suisse, ULAZ 12, P.O. Box 100, CH-8070 Zurich.

This publication is for information purposes only. It does not constitute an offer and is not a recommendation by Credit Suisse to buy or sell securities. Indications of past performance are no guarantee of a positive performance in the future. The analysis and conclusions contained in this publication were established by Credit Suisse and may already have been used for transactions by Credit Suisse Group companies prior to being made known to clients of Credit Suisse. The opinions expressed in this document are those of Credit Suisse at the time of going to press. (We reserve the right to make amendments.) Credit Suisse is a Swiss bank.

Text: Lisa Liao, research analyst, New York

The fine arts market generates around 40 billion dollars a year, spurred by a new breed of collectors from emerging economies such as China, Russia or India. This results in a broader consumer base, less focused on the US and Western Europe. Global wealth creation and increased transparency that come with globalization and technology have also expanded the art market’s reach to a broader audience.

The Art Of Investing In Fine Art

Economy Investing in Art48


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102%Paul Cézanne

87 0%Marc Chagall

89

422 111%Andy Warhol

320 – 6%Pablo Picasso

498%Francis Bacon

245

1492%Mark Rothko

207

165 251%Claude Monet

114 90%Henri Matisse102

308%Jean-Michel Basquiat

92 197%Fernand Léger

Top 10 Artists by Auction Sales in 2007 (in Million US Dollars) Source: Artprice

% Change since 2006

Annual Art Market Returns Versus S & P 500

Based on auction sales excluding unsold items. Source: Art Market Research, Bloomberg

S & P 500

Art market return

Contemporary art return

Since 2003 Since 1985

0% 15% 30%

Art Market Performance in Bear Market Years1985 through second quarter of 2008, average annual returns. Source: Art Market Research, Bloomberg

S&P 500

MSCI World

Old masters

Art 100 Index

Contemporary

–20% –10% 0% 10% 20%

2007 Top Auction Houses by Global Fine Art Revenue1985 through second quarter of 2008, average annual returns. Source: Artprice

Phillips de PuryChristie’sSotheby’sOther

23%

36%

38%

3%

Some collect out of passion, others for in-vestment purposes. With auctions and inter-national art fairs occurring year-round, col-lectors can now estimate the value of their holdings several times a year. The Art Mar-ket Research Art 100 Index is based on auc-tion results of the top 100 artists. It returned 23 percent annually in the last 5 years versus 5.6 percent for the S & P 500. Although the index is not entirely inclusive, as it excludes opaque markets such as dealers and private sales, it is a trend indicator.

As art exhibits a low correlation to other asset classes, its addition to an investment portfolio thus reduces the overall volatility of the portfolio. A fall in stock prices often results in a flight to alternative assets. Prices of contemporary art, works produced since the 1960s, have exhibited an unexpected behavior, continuing to climb after the tech-nology bust through the current credit crunch. On September 16, when markets were roiled by the largest bankruptcy in US history, Brit-ish contemporary artist Damien Hirst collect-ed almost 200 million dollars at Sotheby’s, surpassing the previous record for a single-artist auction by 10 times. Over 35 percent of buyers were new and many bidders were from Eastern Europe and the Middle East.

Harnessing Aesthetic Value

Liquidity is key. The most prized names are those appearing in auctions most often. Andy Warhol’s works have become a bellwether for the market. Some 200 works appear in auctions each year, typically commanding prices of over a million dollars. Old masters, paintings produced prior to the 1800s, are more difficult to assess because it is a less liquid part of the market. Most quality paint-ings are in museums or private collections and are rarely up for sale.

Taste, a driver of art value, is subjective and defies traditional laws of supply and de-mand. No longer is art solely about brush skills. It has evolved into symbolism and pro-vocative messaging. Popular contemporary themes include mortality, race, materialism and street life. No longer an insular market, art is intertwined with glamour, high fashion, pop culture and entertainment, creating high visibility for a wider audience. Art Basel Miami, a premier art fair, held beachfront concerts and social events were held on lux-ury resorts. Google enlisted the American contemporary artist Jeff Koons to assist in launching the iGoogle Artists project, an ap-plication that allows users to select themes

by artists for their personalized homepages. Art production has evolved into a corporate industry. Artists now have factories of assis-tants transforming their ideas into products for consumption. Ironically, those artists whose works fetch hundreds of millions at auction are those dominating the most af-fordable end of the market. Over 50 percent of contemporary art sales during the 12 months ending in June 2008 fetched less than 5,000 euros.

Takashi Murakami, a Japanese contem-porary artist, commands much of this market. His product line includes plush toys sold in candy stores along with his popular pop-hued version of Louis Vuitton handbags. For 3,000 dollars to 6,000 dollars, a minia-ture Jeff Koons’ limited-edition “Balloon Dog” can be ordered from Carlson & Company, a company hired by Koons to construct many of his ideas. Damien Hirst’s company, Other Criteria, licenses his imagery, creates prod-ucts, and sells them online.

Record prices were set in 2008 in the auction market. The priciest painting was Francis Bacon’s Triptych, which sold for 86.3 million dollars to a Russian billionaire. Auc-tion markets serve as a barometer of public interest, with values fluctuating on the shift-ing views of its players.

Although global art sales have slowed in the second half of the year, the new money coming from emerging, highgrowth coun-tries may provide some cushioning. Some see this as a period of adjustment for artists who became too expensive. Despite price declines for certain artists at major auctions held in November, other emerging artists have continued to set auction records. Many believe undiscovered talent is lurking in Chi-na, India or Russia, and find it can be lucra-tive. Hirst’s works for instance sold for less than 10,000 euros in the early 1990s com-pared to today’s multimillions asking price.

Rooms With a View

The global boom in museums, galleries and art fairs has increased visibility for artists im-mensely and there has been a notable rise in participation from Asia and Russia; 75,000 people attended The European Fine Art Foundation ( TEFAF) in the Netherlands where a billion dollars worth of artwork was for sale in March 2008. Competition for slots pressured dealers and artists to produce more interesting works quickly – Art Basel Switzerland drops the bottom 5 percent to 10 percent of galleries each year.



With new demographics, dealers are extend-ing gallery networks to recognize global de-mand. Moganshan Road in Shanghai, once filled with vacant factories, has been trans-formed into a cluster of galleries and stu-dios. As exhibitions move through markets, they also set an artist’s significance in the art world. For example, Rothko paintings, one of which sold for 73 million dollars in 2007, caught the eyes of curators a decade ago and have been exhibited in the Whitney Museum of American Art in New York, le Musée d’Art Moderne in Paris and in Rus-sia’s State Hermitage Museum.

From Brushstrokes to Keystrokes

The digital age is revolutionizing art markets, bridging the information gap between col-lectors and sellers. Artfact.com connects six million dealers and collectors to 1,000 auc-tion houses globally. It sent out 35 million e -mail alerts in 2007 informing bidders of selected works becoming available at auc-tions. Artists no longer limited by gallery spaces can show their work to a global audi-ence via the Internet. Contemporary art deal-er Charles Saatchi runs an online network of over 65,000 artists who sell their work commission-free through Saatchi’s Web site which received almost 900,000 visitors in a month. Saatchi also started a Mandarin ver-sion to exhibit Chinese contemporary artists and plans to open it up to artists from India, Russia, Spain and South America.

New Money for Old masters

The number of Sotheby’s clients has increased 200 percent since 2003, as the auction house competes with Christie’s to expand into China, Russia and the Middle East. China ranked third in the world in 2007, capturing over 7 percent of auction sales. But times are changing. Rising wealth and reduced censorship have dramatically in-creased domestic demand for art. Prices rose eightfold in seven years and over 40 percent of artists worldwide commanding seven-digit sales are Chinese. Of the 10 most expensive contemporary painters, at least seven are Chinese. Sotheby’s and Christie’s continue to face intense competi-tion from Chinese auction houses. Over the last 12 months ending in June 2008, six of the 10 biggest auction houses for contem-porary art were Chinese.

The top 50 contemporary artists now in-clude Iranian, Lebanese and Russian artists, and one artist from the United Arab

Takashi Murakami’s Louis Vuitton Handbags Japanese art star Murakami updated Vuitton’s iconic bags. Jeff Koons’ Balloon Dog The artist’s sculptures continue to set auction records.>

Economy Investing in Art 51


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2002 und 2007 Fine Art Auction Sales Turnover by CountryAs % of total market share. Source: Artprice

Italy

France

China

Other

UK

0% 10% 20% 30% 40% 50%

United States

2007 2002

Hirst’s Lullaby Spring This piece portrays the role of pharmaceutical products in modern society. It sold for 18 million dollars.

Emirates. Sotheby’s and Christie’s for ex-ample sold 325 million dollars of Russian art in 2007, up 45 percent from 2006. Buy-ers from Russia and other former Soviet republics account for about 90 percent of major Russian art auction sales. When Chris-tie’s opened in Dubai, it projected 30 million dollars in sales between 2006 and 2009. In 18 months, it registered 63 million dollars in sales, from jewelry to contemporary Arab, Indian and Iranian works. In November 2008, as the rest of the world remained concerned about a global economic slowdown, Qatar opened a 300-million-dollar-plus museum. The Gulf state intends to invest significant amounts in art to diversify from its currently oil-concentrated economy.

Exploring Artistic Frontiers

Culture banks, microfinance institutions in the developing world that lend against local art objects, have become a new way to trans-form cultural resources of a community into economic resources. The sale of local art-work in Africa has long been a popular way to make small profits as tourists are keen to buy these at bargain prices.

Based on the principles of microfinance, locals can deposit their cultural objects at the bank, which are then used as collateral for loans. The size of a typical loan per art piece varies between 5 dollars and 40 dollars de-pending on the verifiable historic information provided by the artist/owner. Borrowers can use the loan to finance local business ac-tivities, while the art piece remains in the lo-cal community. The culture bank uses its pro-ceeds to conduct activity programs ranging from artisan workshops to health education.

Commercialization of art through evolving trading venues, technology, and culture has made art more accessible than ever. The di-versity of today’s demographics and purpose fuels the uniqueness of the market; person-al satisfaction with a piece will ultimately out-live any differences in opinion in the ever dif-ficult process of valuations. <

Unless otherwise indicated, the data provided on pages 48–52 has been obtained from the following sources: Art Market Research, Art and Auction Magazine, Artinfo.com, Artprice, Bloomberg, Chubb & Son, Condé Nast, The Economist, Financial Times, Forbes, Hoover’s, International Herald Tribune, New York Magazine, New York Times, Prospect Magazine, Reuters, Vanity Fair, Wall Street Journal, Wikipedia.com, Worth Magazine, Media Metrix.



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Economy 2009 Outlook

Equity and Bond Markets: A Tentative Upward Trend?

Text: Giles Keating, head of Global Research, Zurich

The sharp falls recorded on the stock markets and in the prices of corporate and bank bonds in 2008 have created potential investment opportunities. There is mounting evidence that the overall direction of the equity and bond markets could be tentatively upward during the course of 2009, though some volatility needs to be expected.

In late 2008, the credit crunch spread rapidly from financial markets to the real economy, as banks sought to cut risk. Trade credit, auto loans and other credits were badly affected, damaging international trade, accelerating liquidation of inventories and triggering sharp falls in consumption. The world’s major industrialized economies entered a deep recession, while China and other emerging markets slowed sharply.

The authorities responded with unprecedented measures. Interest rates were cut, there was new capital for banks, guarantees of bank deposits and purchases of assets like mortgage bonds. Crucial companies like auto finance units and insurers got government aid. The US committed over 8 trillion dollars (over 50 percent of GDP). Other countries went the same way, with more available if needed. The downward spiral in confidence about banks has been arrested, some lending activity has seen a partial recovery from low levels, and the interest rates for loans between banks have fallen from exceptional highs. What has not been achieved is to

dissuade banks from reducing risk and cutting balance sheets.

This vast effort has stabilized the financial system, but not added stimulus, which must instead come from tax cuts and government spending on a grand scale. As we write, reports suggest that Presidentelect Barack Obama is considering a package approaching 1 trillion dollar (approximately 7 percent of US GDP). China’s government has announced fiscal stimulus of a similar size relative to its GDP and signaled its readiness to do more. In Europe, economic problems seem less serious than in America, with the response likely to be smaller. Globally, though too late to stop recession, we believe there is a political commitment to prevent depression. In effect, governments are taking over substantial parts of private sector debt. Some of this will not add to public debt in the long run, but parts will. In future years, governments must tackle this either by fiscal austerity, or by allowing inflation.

Assuming that depression is avoided, the low levels of equities and corporate bonds

seen last November (when the S & P 500 index was below 750) probably represented some good longterm deep value. Meanwhile, there is evidence that the worst of the hedge fund deleveraging is past and that investor sentiment is edging up from a very low level. Business surveys suggest the collapse in output of late 2008 may stabilize in early 2009, though job losses will likely stay high for some time, since they tend to lag behind output.

November may have been the low of the bear market. However, this conclusion is far from certain. A harsh lesson of 2008 was that the crisis can rapidly spread to new areas. The most likely outlook for 2009 is maybe that equities, and corporate and bank bonds will see strong rallies as some investors seek longterm value, then sharp reversals as new bad news emerges and other investors seek to reduce their risk positions. Credit Suisse believes the overall direction of these markets could be tentatively upward, provided that government policy remains set on expansion. <

Economy Growth54


Knowledge as a Key Driver Of Economic Growth

Text: Matthew Rees

For centuries, the accepted wisdom held that labor, land and capital were the factors behind economic growth. But why do countries which lack some of these three basic resources then still manage to grow? Stanford Professor Paul Romer has unlocked the mystery by illuminating the correlation between knowledge and growth.

One of the underappreciated realities of human history is that most of it has been lived in misery. Consider the most basic indicator of living standards: life expectancy. From the Paleolithic era (2.5 million years ago) up to the early 19th century, average life expectancy remained roughly the same – about 25 to 35 years. When the 17thcentury English philosopher Thomas Hobbes described life in the state of nature as “solitary, poor, nasty, brutish, and short” he was speaking of an existence that had persisted for so long that there was no reason to think it would ever change.

But it did. Enlightenment thinking in the 18th century focused renewed attention on reason, and by extension on human progress. In 1776 an obscure Scotsman, Adam Smith, wrote what would become a celebrated work of economics, “The Wealth of Nations,” which spelled out many of the foundations for economic progress: “peace, low taxes, and a tolerable administration of justice.”

Within a few decades, living standards and per capita income began to chart an upward trajectory in much of the world. Medical breakthroughs led to better health and diplomatic breakthroughs to fewer wars. But underpinning the higher living standards was a truly radical breakthrough: Individuals were becoming more productive thanks to mechanical innovations like the steam engine, and that was making economies more efficient. The interplay between the two, enabled economies to grow as they never had before. For most of the next 200 years,

the accepted wisdom held that there were three primary ingredients in the recipe for economic growth: labor, land and capital. Accelerated growth and higher living standards came to those countries that understood how to put this trinity to work.

Yet amidst this period of wealth creation, the foundations of economic growth received surprisingly little attention from professional economists. Sure, theories were adapted to take account of macroeconomic developments – preserve free trade, keep taxes low, etc. – but many of the basic precepts about economic growth were little changed.

Romer Busts Study of Economic Growth

Then someone came along and, in the words of Paul Krugman, a professor of economics at Princeton University, “busted the study of economic growth wide open.”

The “someone” was an American economist named Paul Romer. A graduate of the University of Chicago’s economics department, Romer set out to make sense of “the reality that growth seemed to have been speeding up for more than a century instead of slowing down, as had been expected” (as David Warsh puts it in “Knowledge and the Wealth of Nations,” a definitive account of Romer’s work, published in 2006).

In the aftermath of World War II, Japan lacked two of the ingredients that were supposedly fundamental to economic expansion: natural resources and capital goods. Yet it achieved a growth rate that made it the world’s secondlargest economy by 1990.

Paul Romer is a senior fellow at the Stanford Institute for Economic Policy Research (SIEPR). He received his PhD in economics from the University of Chicago.

Economy Growth 55P

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Other countries were also achieving extraordinary growth. Why ? This question set Romer on an intellectual journey, which culminated with two articles: “Increasing Returns and LongRun Growth” (1986) and “Endogenous Technological Change” (1990) – which both appeared in the Journal of Political Economy. While littered with jargon and equations, Romer helpfully summarized his three primary points: Technological change is fundamental to economic growth. Technological change is triggered by people who are taking intentional action in response to market incentives. The economic payoff from technological change comes from the creation of “instructions” that enable new products to be used over and over again at no additional cost.

Romer’s breakthrough insight was illuminating, as no one had quite done before, the correlation between ideas and economic growth. He pinpointed how knowledge was not, as traditionally thought, “exogenous” (external) to economic growth, but rather “endogenous” (internal). In other words, knowledge itself could drive increasing returns on investments in knowledge. As we know more, each succeeding knowledge breakthrough will deliver a bigger payoff, which in turn fosters higher levels of economic growth.

Central to much of Romer’s work has been an emphasis on the ability of human beings to pursue “the discovery of better ways to do things.” This distinguishes us from other living organisms. As Romer has noted, “an ant will go through its life without ever coming up with even a slightly different idea about how to gather food.” Once better ways of doing things are discovered and broadly disseminated, they spark greater efficiency and, ultimately, higher growth levels.

Long-Run Optimism for Further Growth

Romer has illustrated the basics of economic growth with a comparison to cooking: “To create valuable final products, we mix inexpensive ingredients together according to a recipe. The cooking one can do is limited by the supply of ingredients, and most cooking in an economy produces undesirable side effects. If economic growth could be achieved only by doing more of the same kind of cooking, we would eventually run out of raw materials and suffer from unacceptable levels of pollution and nuisance. Human history teaches us, however, that growth springs from better recipes, and not just from more cooking.”

We see the examples of progress all around us: computers, mobile phones, medicines and medical technologies. The common denominator for these and other drivers of economic growth is, increasingly, that they are built on ideas and information.

Yet at a moment when technological breakthroughs seem to be accelerating, the world is in economic turmoil and the International Monetary Fund predicts that the global economy will see slower growth in 2009. A challenge to Romer’s ideas?

Not quite, he says. “Like the 1970s, people are going to assume that a shortterm slowdown means the trend is slower as well. But the arguments for longrun optimism are as strong as they have ever been.” Indeed, computers, coupled with the Internet, greatly facilitate the development of ideas, and their sharing. But leveraging the power of this technology and others depends on a supply of welleducated individuals who are constantly pursuing a “better way to do things.” Realizing this means investing in education, while ensuring that the education system is flexible enough to encourage thinking that is both creative and counterintuitive. This is central to the innovation and invention at the heart of Romer’s ideas about growth.

Equally important is an intellectual property regime that incentivizes discovery, and rewards it. Here, Romer has singled out the need to protect patents, ensure there are opportunities for foreign direct investment, and avoid heavy regulation and high mar ginal tax rates. Simply put, there must be rewards for discovery. Without rewards, research will be pursued with less zeal, which will ultimately lead to less economic growth and lower living standards.

Romer’s work has helped to cement these ideas into mainstream thinking about how to spark economic growth. But trying to measure his longterm impact is fraught with difficulty. What is clear is that he clarified a central truth about growth, and in doing so influenced the economic thinking that drives economic policy throughout the world.

Given Romer’s emphasis on knowledge building on knowledge, it would be fitting for this phenomenon to play out in his discipline as well. We can only hope that other economists pursue research that draws on his work and help to enhance understanding of one of the most vital issues facing mankind: How countries grow, and how individuals can, over time, realize greater wealth and greater health. <

Matthew Rees is a former

White House speechwriter and

the president of Geonomica

(www.geonomica.com), a writ-

ing and consulting firm.

3 billionpeople without Internet access

3.7 billionpeople with Internet access

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The Internet From Space

Text: Uwe Neumann, research analyst, Zurich

Imagine a world in which everyone has access to the Internet. What sounds like a utopian vision could soon become reality – thanks to satellite technology. Alongside Internet giants like Google, leading satellite operators are working to make the Internet univer-sally available. This also opens up opportunities for investors.

Internet market leader Google, in coopera-tion with the British bank HSBC, intends to introduce Internet access via satellite under the code name O3b. O3b stands for the “Other 3 billion,” meaning those people who still have no access to the Internet, either because they cannot afford it or because the necessary infrastructure does not exist. The intention is to put this service in place by 2010. Both companies plan to invest up to 750 million dollars to achieve their goal.

New Satellite Infrastructure for Europe

Internet access via satellite is also being pushed as an option in Paris. The aim of the “Digital France 2012” initiative is to provide Internet access to every French home by 2012, even in areas where cable connections are not an option. Eutelsat is set to play an important role in this development with its Tooway™ Internet service. In 2008, Europe’s second-biggest satellite operator began to invest in a new satellite infrastructure for the whole of Europe. This is intended to provide satellite-based Internet access that offers the same quality currently offered by terres-trial providers. In Switzerland, Swisscom an-nounced at the beginning of last year that it would in the future offer this service along-side its broadband offering via DSL. This would enable Swisscom to meet its legal obligation to provide basic Internet access in all regions of Switzerland by 2017.

Until now the operators of satellite ser-vices have generally made their money from TV or video-on-demand offerings. The growth

drivers are the rapid increase in new pay-TV broadcasters, principally in the emerging economies, along with the rising numbers of TV channels and the growing desire for higher-quality images (high-definition TV). The major buyers of the bandwidth capacity offered by satellite operators are media and television companies and the public sector (including the military), but businesses in the telecom sector are also showing increased interest. Since July 2007, for example, Europe’s lead-ing satellite operator SES has enjoyed con-siderable success selling its IP Prime product in the US. It offers cost-effective feeds of TV, pay-TV and music channels to the IP TV ( Internet Protocol TV) platforms of telecom service providers.

Satellite Internet

The satellite partnership of Eutelsat and SES now intends to do something similar in Eu-rope with their own projects. Both compa-nies see a potential market of 15 to 30 million households which telecom companies could provide with cheaper and higher-quality ser-vices via satellite Internet than via the copper wire network.

After some teething problems, SES’s AS-TRA2Connect product, which has been on the market for about a year, is currently re-porting a growth rate of 10,000 connections per month. With annual revenues of 35 million euros from 2010 onwards, this service is like-ly to remain a niche offering, since potential customers face relatively high equipment costs. However, the interest of telecom pro-

viders in satellite Internet services goes much deeper. Mobile wireless services, in particu-lar, hope to be able to use satellites to create a raft of new and inexpensive offerings. Until now the telecom providers have been offer-ing mobile Internet and TV via their UMTS networks. This involves using a significant amount of bandwidth and is therefore rela-tively expensive for consumers.

On the other hand, TV, Internet, video or music content could in the future be trans-mitted digitally from satellites to the terres-trial networks and distributed cheaply to mobile end users. These services could be combined with navigation and location infor-mation (GPS), which would open up a broad spectrum of new services. Back in 2006, the European satellite duopoly of SES and Eutel-sat founded the joint venture Solaris with the intention of offering this type of services to telecom companies. The required frequen-cies are due to be released later this year.

Demand Exceeds Supply

In a worsening economic environment the satellite operators ought to do relatively well. Their long-term customer contracts make fu-ture revenues relatively transparent. There is no overcapacity – demand exceeds supply by a wide margin. Although the sector is capital-intensive and debt levels are relatively high, refinancing is assured over the long term and the scope for passing on price rises is high. The sector can therefore be seen as a rela-tively defensive investment whose new per-spectives have not yet been noticed. <

Economy Household and Personal Care Products58


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The household and personal care products sector is more cyclical than commonly thought, particularly when compared to other consumer staples. One reason behind this cyclical demand is that consumers tend to switch to less expensive shampoos, soaps and detergents in tougher times.

Text: Olivier P. Müller, Equity Research Europe, Zurich

Consumer staples – food, beverages, tobacco, household and personal care products – are commonly believed to be defensive products. Such products are typically less affected by the economic cycle in terms of demand and also in terms of sales growth and profit margin development. These products are also thought to have a lower earnings volatility. While Credit Suisse believes that this view is true for the food and tobacco sectors and to a lesser extent the beverages sector, household and personal care products are relatively more cyclical than the broader consumer staples sector and thus less defensive.

Credit Suisse believes the current economic environment is likely to have a negative impact on consumers, particularly in developed markets where we are currently in a recession and expect little improvement in 2009. A recession typically leads to a lower average disposable income growth for consumers, higher unemployment and lower consumer confidence. Consumers are therefore likely to generally reduce their expenses and as a result consume less.

Secondly, consumers are likely to spend more efficiently and change the amount spent on certain product categories. This is likely to trigger changes in relative demand for specific product categories. Moreover, declining consumer credit on the back of tightening credit conditions in certain coun

tries, as well as a reduction of household indebtedness, are likely to add to this trend of declining consumption.

Consumers Are Spending Less

In the light of this, Credit Suisse believes that household and personal products are likely to be relatively more affected by the current economic environment than other generally defensive consumer staples industries. The bank holds this opinion for two reasons. First and foremost because of downtrading. In a difficult economic environment, consumers have less disposable income and have to manage their expenses more efficiently. They are therefore likely to trade down.

Trading down means that in a particular product category, consumers are going to buy less luxury or premiumtype products and switch to more massmarket or even private label products. Thus, companies which are positioned in the upper segment are likely to suffer a decline in sales and market share, benefiting companies positioned in the massmarket or private label – products sold under the name of a retailer or a manufacturer – segments.

Private labels particularly tend to gain market share (see figures page 59) in a period of slower or declining economic growth. Furthermore, the price increases for most of the categories pushed through by the household

and personal care product manufacturers in 2007 and 2008, on the back of raw material cost increases, further spurred market share gains of private labels. In 2008, the market share for basic private label products such as toilet soap rose 12.2 percent in Europe, while that of bath and shower products increased by 11.7 percent. On the other hand, categories which are more valueadding or that consumers are more sensitive to, such as haircare products, tend to be somewhat more resilient (see figure page 60).

A good example for the downtrading trend was the pattern observed in the second half of 2008. L’Oréal, which is more tilted toward premium or highend products, for example reported very weak like for like sales growth figures, particularly in Europe. The company also revised its 2008 earnings and sales outlook down and gave a cautious view for 2009.

Meanwhile, Beiersdorf, which managed to position its core brand Nivea very well, reported a good momentum in sales growth in the second half of 2008, demonstrating that it must have somewhat benefited from downtrading, resulting in higher market shares. Credit Suisse’s analysis indicates that during that period, the market share of private labels in both household and personal care products increased. This trend could continue going into 2009.

Household and Personal Care Products Take a Hit

>

Economy Household and Personal Care Products 59


Emerging Markets: Sector’s Key Growth DriverThe share of sales and profit growth stemming from emerging markets is likely to gain importance for the European household and personal care product manufacturers in the years to come. Source: Company accounts, Credit Suisse estimates

L’OréalHenkelReckitt BenckiserBeiersdorfOriflame

5%

9.4%

79.5%

15.8%

4.9%

0.0%

5.7%

2.0%

14.2%

11.1%

3.5% 0.5%

6.6%

15.6%

5.3%

1.0%

10.2%

8.5%

6.9%

1.5%

Emerging market (EM) sales as a % of total sales 2008E

Asia Pacific Eastern Europe, Middle East Latin America Africa

89.4%Total EM

32.9%Total EM 29.3%

Total EM28.5%

Total EM 27.1%Total EM

Economy Household and Personal Care Products60


The second reason for the cyclical demand for household and personal care products is that the overall demand for such products generally rises with disposable income. This means that – especially in emerging markets – demand for these products tends to rise with increasing disposable income.

At first, consumers only have access to very basic products and necessities. As their incomes climb, they switch to more sophisticated products in order to satisfy their more demanding needs. With disposable income rising less rapidly than a year ago in emerging markets or even declining in certain developed countries, demand for household and personal care products is likely to increase less rapidly than was expected at the beginning of 2007. Demand could even decline. Credit Suisse thinks this is true for both emerging markets and developed countries.

Emerging Markets Offer Key Growth

While developed markets now are facing a recession, leading to slowing or declining sales growth, emerging markets are despite some deceleration of growth still likely to keep their aboveaverage growth pace. As a result, the share of growth stemming from emerging markets is likely to become even more important for the European household and personal product manufacturers. The share of sales and profits generated there is likely to become even more significant. L’Oréal, which for instance generated around 57.2 percent of its sales growth in emerging markets in 2007, could see 86.7 percent of its total growth to come from those regions this year according to Credit Suisse estimates. The company is likely to earn 30.2 percent of its total sales there in 2008.

However, given some economic weakness in certain emerging markets (such as Eastern Europe and the Baltic region), Credit Suisse prefers companies which have a more balanced global exposure, especially toward Asia, where growth rates continue to be superior, despite being subject to some deceleration as well.

As a result, Credit Suisse believes that companies with a broad portfolio of massmarket products within several categories and which have a geographically balanced emerging markets exposure are likely to be more resilient to the current economic downturn. Those will be the main beneficiaries of consumers trading down. <

Sensitivity of Household Product Categories to Price Increases (2007/2008)Household products are subject to downtrading, the substitution to private-label products, in tougher times. Products such as fabric softeners or air fresheners are more affected than toilet cleaners for example. Source: AC Nielsen, Credit Suisse

6%5%4%3%2%1%0%

0.0%

0.2%

0.4%

0.6%

0.8%

Air fresheners

Surface cleaners

Room cleaners

Laundry detergentsToilet cleaners

Automatic dishwashing products

Laundry water softeners Stain removers

Fabric softeners

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

Market share gain private label

Market price change category (per unit)

10%8%6%4%2%0%–2%–4%

0%

0.5%

1.0%

1.5%

2.0%

Toilet soapBath and shower

ShavingDepilatoriesColor cosmetics

Body moisturizerDeodorants

Skin care

Hair styling

Hair colorants Sun care

ToothpasteHair shampoo Hair conditioner

2.5%

3.0%

3.5%

4.0%

Market share gain private label

Market price change category (per unit )

Sensitivity of Personal Care Product Categories to Price Increases (2007/2008)Personal products are also affected by downtrading, though consumers seem to stick to their premium, high-end brands when it comes to sun care and hair colorants, regardless of the economic situation. Source: AC Nielsen, Credit Suisse

Economy 61


Bear Market [ Market environ-ment with falling securities prices ]: No, a bear market is not an event at which muzzled grizzlies exchange hands for sums of money. In market jargon, the bear is the symbol of the falling price – or a market environment in which traded securities are persistently falling in value.

When investors increasingly lose their confidence in the financial markets, as has been the case globally over the last few months, this sentiment is referred to as “bearish.” For this reason, investors who speculate on price falls or at least anticipate such decreases are referred to as bears. The coun-terpart to the bear is the bull, the symbol of rising prices and investor optimism where future market development is concerned.

Quite how these two animals came to represent stock market symbols is not clear. Possibly the parallels to price movements are to be found in their respective methods of at-tack: While the bear drags its prey down with its paws, the horns of the bull are tossed upward.

“Thesaurierung” [ German word meaning “reinvestment of profits” ]: Back in antiquity, Greek temples would often contain an ornate ceramic vessel that was used by the priesthood to securely house valu-able sacrificial offerings. This ves-sel was known as the “thesauros,” meaning “store -house,” hence the modern German and English words “Tresor” and “treasury.”

In the German language, how-ever, the word Thesaurierung is also used in connection with invest-ment funds. It describes a policy whereby the profits earned by a fund are not distributed to unit holders, but are instead used to increase the assets of the fund. In other words, rather than fund unit hold-ers being issued with new units, they see the value of their existing units rise.

In addition to tax advantages, this procedure also results in the market value of the fund as a whole growing more strongly than the

Good to Know

amount of the reinvested profit. When stock corporations or other limited companies set aside profits for internal company use rather than distributing them to share-holders, they too are engaging in a policy of “Thesaurierung.”

The English language does not have an equivalent word, but the ancient Greek concept of a valuable store-house lives on in the lexicon. In addition to the word

“treasury,” a “thesaurus” also acts as a repository of valuable treasure – namely language itself.

FTSE4Good [ Index series for sustainable investment ]: Let’s get one thing straight: An investor looking to channel funds into the tobacco, armaments or nuclear energy sectors will not gain any tips by looking at the FTSE4Good.

Why ? Because such sectors are actively excluded from these in-dices, which only accept companies that are committed to responsible conduct and adhere to globally ac-cepted guidelines. Specifically, represented companies have to be committed to sustainable environ-mental protection, positive dialogue with stakeholders, and a willing-ness to respect and actively sup-port human rights.

Owned jointly by the London Stock Exchange and the Financial Times, FTSE is a company that specializes in the publication of equity indices. The 4Good indices were created as instruments with which socially and environmentally sustainable investments could be identified and evaluated. The re-spective indices track the perfor-mance of the represented stocks, sectors and regions. tst

Definitions and book reviews from the business world

Breakthrough Business Negotiation

A Toolbox for Managers By Michael WatkinsJossey-Bass, 2002 Hardcover320 pagesISBN-13: 978-0787960124

Breakthrough

Stories and Strategies of Radical Innovation By Mark Stefik and Barbara Stefik The MIT Press, 2004Hardcover294 pagesISBN-13: 978-0262195140

Breakthrough innovations are serendipitous, cannot be planned, and often come from the collision of different ideas and perspec-tives. They depend on basic research, usually conducted in universities or government-funded institutes with a long-term per-spective. Businesses generally produce incremental innovations – minor improvements on existing products and technologies. Mark and Barbara Stefik’s guide to innovation is based on their belief that, given the above premises, the new century demands that businesses increasingly foster inventive strategies. The authors tell inventors, entrepreneurs and managers what they can and must do to achieve breakthrough innovations. They explain the basis for innovation, and what breakthroughs mean in terms of business strategy for the 21st century. The authors base their research on interviews with a range of inventors and managers. © getAbstract

If you say potato, and they say po-tah-to, you say tomato and they say to-mah-to, you can still work the whole thing out. Just ask Michael Watkins, Harvard associate professor and author of this solid primer on how to conduct effective negotiations. While “Breakthrough” may seem like the title of a mere marketing pitch, Watkins organizes the material thoughtfully and goes way beyond a pitch to emphasize the dynamics of multiparty negotiating and examine the power of coalitions. He diagnoses the external and situational factors that shape even two-party negotiations and provides helpful examples, diagrams and lists. His style is a big improvement on most ponderous academic tomes on nego-tiations. To get the most out of this volume, you need to digest it, then practice: Anyone facing any form of multiparty negotiations should bring this with them to the bargaining table. © getAbstract


Leader Lorin Maazel62


Leader Lorin Maazel 63P

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Bulletin: You have a long history with the

New York Philharmonic, having made

your conducting debut in 1942, at age 12.

Sixty years later, you took over as music

director of the orchestra. Was it destiny or

hard work that got you there?

Lorin Maazel: I think it is impossible to make any kind of career in any field without a great deal of hard work. Musicians, chess players, athletes and mathematicians show their tal-ent at an early age. You cannot become a chess master unless you have the genius for it. That is certainly true in my field as well. Musicians show their talent early, yet, very few show it as publicly as I did. In my case, I conducted the New York Philharmonic among many other orchestras in the United States during World War II as a child prodigy until the age of 15. Some 30 years later, I came back to the New York Philharmonic as an adult and began a new relationship based on something considerably more solid. This relationship culminated into the music direc-torship which I am enjoying today.

At what point in your life did you

realize that conducting was what you

really wanted to pursue?

Not until my early 20s. I had spent most of my childhood as a musician learning to play the violin, piano and clarinet and studying

composing. In my late teens, I felt there must be many other things that I did not have an opportunity to explore, including literature, history, philosophy and languages. So, I put myself through night school at the Univer-sity of Pittsburgh.

I worked during the day by playing violin in the Pittsburgh Symphony. I joined not for the purpose of widening my dimension as a musician, but for the purpose of earning money to put myself through school. Little did I know that those performances would turn out to be decisive for me because I was playing under some of the most famous con-ductors of the day, and I was learning a great deal from them without realizing it. They were convincing me that my future would lie in music, just as my past did.

Fame has accompanied you for most

of your life. How do you deal with it ?

Fame is what other people think of you and about you. It is being known outside your own private circle of family and friends, but it is really an extension of that. If you are known by 50 people or 50 million people, what’s the difference? Seen that way, fame is no more or less important than being known by your inner circle. Most people, however, don’t see it that way and they attach some kind of value to fame that it doesn’t have.

So, you clearly don’t put much stock in

being famous.

I was quite famous – if that is what you want to call it – as a child. Some people have said that I was forgotten. I wasn’t forgotten. It was just that people saw no more reason to be interested in Lorin Maazel as a young adult. The Lorin Maazel they knew was a boy in short pants with black curly hair looking very serious conducting famous orchestras and masterpieces. That person was gone. With the disappearance of that person went knowledge of him and his fame. Therefore I learned early that fame is ephemeral.

Yet, many great conductors have left

their marks on musical history.

People are forever talking about legacies and a place in history, but that is total nonsense. Even the shortest view of history will show us that there have been hundreds and thou-sands of great artists, poets and musicians who have been forgotten.

To be overly focused on questions of pos-terity and legacy, of having a place in history, is a waste of time. It is an egomaniacal ex-ercise irrelevant to the purpose for which performers should be concerned. We are there to communicate what it is that we know about the music with people at a given mo-ment. To the degree that we are success-

Maestro Maazel Has No Regrets

Interview: Michèle Bodmer

Lorin Maazel has conducted many of the world’s most notable orchestras over the last 60 years. He is now in his seventh and final season as music director of the New York Philharmonic. Though soon to be 79, he has no plans to slow down. In fact, his schedule is already booked through 2013.



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ful, people react positively. If we are suc-cessful in doing so time and time again we become famous, but that fame will soon evaporate and folks won’t remember our names 30 years from now, nor should they. We are people of the moment. I suppose we all are, but especially performers.

Being in the limelight also has its

drawbacks – in the form of critics.

Only people who know nothing about music become critics. Therefore, the opinions of critics mean nothing to me.

Great musicians and composers don’t

necessarily make great conductors.

What personality traits does a successful

conductor have to possess?

There are certain natural aptitudes, such as excellent memory and preferably perfect pitch, which is the ability to identify the num-ber of vibrations each note has so that you are able to identify the note itself. You also need the ability to perform publicly, believing in the people for whom you are performing, and you must have the desire to open musi-cal vistas for them and give them pleasure as listeners. And, one must also have respect for the great composers who have given us the music that we perform.

How important is it for a conductor to

motivate the orchestra?

That is why we are there. It is my job to help the musicians to feel that all of the years they have put into practicing their instru-ments and the hours they have to put in every day to stay fit technically, has a pur-pose and is worthwhile.

That’s a big mission. It sounds as if

trust is an essential part of that motivation.

Actually, the first thing you try to do is meet their expectations professionally in order to gain their respect. You can’t impose respect, you have to win it. The second area is moti-vating them musically. You have to feel that the music you are asking them to make is based on some kind of musical logic on a purposeful utilization of musical instinct.

Your orchestra is made up of many

talented musicians. How do you deal with

individual temperaments and needs?

Each musician also has his own way of mak-ing music and to express himself. I try as hard as I can to incorporate a personal musical view into a larger structure. If I disagree fun-damentally with a musical viewpoint enter-tained by an individual soloist, I will speak to him or her quietly about it and explain my reasons. Nine times out of 10, what your first chair players have to offer is of the highest

order. I love incorporating their individuality of expression into that larger structure, and to come up with a kaleidoscope of colors and phrasings that mesh very well because of the guiding hand of the conductor, who is think-ing about timing and structure.

You have a poetic way of explaining

what you do. Is that due to the nature of

the music?

I believe that classical music − having come from a certain religiosity where compassion for the masses is underlined in requiems − has the power to touch people on a very emotional level.

Do you believe that music has the

power to bridge the gap between classes

and cultures?

That is a big task for any undertaking, but classical music can come closer to a univer-sal appeal than any other activity. In respond-ing to classical music, people from different classes do find common ground.

There are moments engraved in my mind that bring that forth, for example the first time the Star-Spangled Banner, the nation-al anthem of the United States, was played by the New York Philharmonic in North Ko-rea in February 2008 to an audience of mostly Korean government officials. They cheered when it was over. That was an ex-traordinary event. I don’t think any greater example can be given of bringing people to-gether through music − though the Star-Spangled Banner is not a classical work.

For three decades, you have supported

United Nations (UN) agencies donating

your services to raise funds. Will

you continue this after this season?

I try to support organizations that are apo-litical, but they are very difficult to find. I do believe that art and artists should be divorced from partisan politics or political tilts. If I give my services, I try to do it for a specific issue, such as for children who need important in-oculations against diseases. I am planning to devote more of my time to such issues, starting in 2010.

What was the most memorable concert

you have given for a cause?

I have performed in many countries in which the political stance leaves something to be desired in the area of human rights. Yet, the people’s response to our music is so indica-tive of the state of mind of the people as opposed to the government which rules them and the positions they take. I remember giv-ing a concert for the UN in New York City with a Russian soloist and the Pittsburgh

Born on March 6, 1930 to American parents in Neuilly-sur-Seine, France, Lorin Maazel was raised and educated in the US. He took his first violin lesson at age five and conducting lesson at seven. Be-tween ages nine and 15, he con-ducted most of the major American orchestras. At 17, he entered the University of Pittsburgh to study languages, mathematics and philosophy. While a student, he was a violinist with the Pittsburgh Symphony Orchestra. At age 23, he came back on the scene as a conductor and quickly established himself as a major artist. Maazel, who has led more than 150 orches-tras in more than 5,000 opera and concert performances, be-came music director of the New York Philharmonic in Septem-ber 2002. He has also composed an opera, “1984,” based on the George Orwell novel “Nineteen Eighty-Four.” Among his many professional honors he is also a UN Ambassador of Good Will. www.maestromaazel.com

>


Leader Lorin Maazel 65

Above lef t The young musical prodigy Lorin Maazel playing violin on a Michigan beach while at National Music Camp. Above right Maazel taking a bow at a concert by the Robin Hood Dell Orchestra in 1943. Below lef t Maazel’s parents watch their son rehearse at the Hollywood Bowl in 1939 where he conducted the Los Angeles Philharmonic, sharing a program with conductor Leopold Stokowski. Below right Lorin Maazel as a violinist with the Pittsburgh Symphony Orchestra.



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Symphony at the height of the Cold War. After the performance we walked out arm-in-arm and I stopped the applause and said: “Here you have an American conductor and orchestra making music with a Russian. If we can get together, why don’t you folks out there emulate our example?” Keep in mind that I said this to a room full of diplomats from around the world.

My statement was met with deathly si-lence and I thought I’d overstepped my bounds and, yet again, let my tongue get the best of me. After what seemed like ages, everyone stood up and began cheering. They saw my point. If the world of music can get along, they should also consider finding com-mon ground, instead of building obstacles. Of course there are differences between culture, between economic and political in-terest and questions of historical conflict, but all this can be ironed out.

It’s been said that classical music is

in a crisis. Do you agree?

Classical music is not dying as some people might think. It may be faltering among the tired, aging, American upper-middle class, but it is certainly not in Europe or in Asia. In Japan, for example, the interest in classical music has tripled or quadrupled in the last 25 years. In China this year during our Asian tour, most of the concerts were packed with people under 30 and I saw families with young children listening in awe.

Your valedictory season as music

director of the Philharmonic began in

September 2008 and ends in June 2009.

What are you looking forward to this

season?

Our program is very challenging and we are closing the season with Gustav Mahler’s “Symphony of a Thousand.” We will also per-form a piece that is very close to my heart, Benjamin Britten’s “War Requiem” that tells the story of two enemies who meet after death and mull over the futility of war. This is a piece that I will be performing in my pen-ultimate week in June 2009. It is a piece that I hope to be performing quite often because it carries a message that is dear to me. It is a political statement of sorts on my part, but it is primarily a musical masterpiece.

Are you leaving with a heavy heart ?

My last season with the Philharmonic will be a sentimental journey, though I am very hap-py that I decided at the beginning of my ten-ure that I would stay with the orchestra for seven years only. That is the same number of years that Arturo Toscanini stayed with the

orchestra as music director. Seven also hap-pens to be my lucky number. So, I will be leaving with a light heart, knowing that the orchestra will continue on its successful course. We will again be making music to-gether in the 2011–12 and the 2012–13 sea-sons. That seems very far off, but in our world that is like the day after tomorrow.

Do you still have dreams you want to

fulfill after your time with the NY Philhar-

monic comes to a close?

I will go back to composing more. And I will pick up with old friends that I left behind seven years ago, including the Vienna Phil-harmonic and London’s Philharmonia Or-chestra among others. However, I won’t be conducting as much because I need more time to write music.

Looking back at your career, is there

a particular moment that stands out ?

There have been so many moments in my life. I feel very, very fortunate. One should be grateful for many things, primarily health. All the rest is a bonus on top of that. Why so many people are depressed in this day and age is beyond me. Every day is an important day for me. Having said that, my memory is filled with glorious performance moments − what the Germans call Sternstunden (magic moments). To single just one out and to say that was the greatest moment of my profes-sional life would be very difficult.

Have there been as many personal

as professional highlights?

Contrary to what many believe, I am not a workaholic at all. If my life had been nothing but giving concerts, preparing for them and rehearsing, I think I really would be de-pressed. I am a lover of life and have visited almost every corner of the earth. I have been to some really exotic places as a tourist, as a younger person when I had very little mon-ey. Traveling with little money gives a tremen-dous sense of freedom, which is quite won-derful. I find that being affluent weighs you down a bit. I have done a lot of returns to nature for extended periods, and they have stabilized my life.

I am so grateful for the many times I have disappeared into nature and had a marvelous time. I do not have to construct a “bucket list” and have a film made about the things I still have to do before I die, like my look-a-like Jack Nicholson. I go into my twilight years with no regrets. <

Maazel has taken the New York Philharmonic on many international tours, including Asia 2008 — to Taipei, Kaohsiung, Hong Kong, Shanghai and Beijing; and to Pyongyang, Democratic People’s Republic of Korea, the first visit there by an American orchestra. Other trips included the Tour of Europe 2008 with 13 concerts held in London, Frankfurt, Hamburg, Lucerne, Essen, Paris, Stuttgart, Baden-Baden and Bonn; the November 2006 visit to Japan and Korea; the June 2006 Philharmonic Tour of Italy; and in autumn 2005, the two-part 75th Anniversary European Tour to 13 cities in five countries. Maazel and the orchestra will embark on a 13-concert Winter US Tour 2009 beginning February 21 and ending March 9.

Concert Schedule:February 21, Atlanta, Georgia February 22, West Palm Beach, Florida February 23, Naples, Florida February 25, Sarasota, Florida February 26, Miami, Florida February 28, San Juan, Puerto Rico March 1, San Juan, Puerto Rico March 3, Chapel Hill, North Carolina March 4, Chapel Hill, North Carolina March 5, Danville, Kentucky March 7, Ann Arbor, Michigan March 8, Ann Arbor, Michigan March 9, Chicago, Illinois

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Breakthroughs - Credit Suisse · 2019-01-29 · Hilda Mpagama TAN 2325 - Memory Mutsakani ZIM 2326...

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