Scribd Logo
Upload

Welcome to Scribd!

  • Abuse, Poverty and Migration: Investigating Migrants' Motivations To Leave Home in Burma

    Uploaded by

    Pugh Jutta
    101 views62 pages
    International reporting of the large-scale migration of those leaving Burma in search of work abroad has highlighted the perils for migrant during travel and in host countries. However, there has been a lack of research in the root causes of this migration. Identifying the root causes of migration has important implications for the assistance and protection of these migrants. Drawing on over 150 interviews with villagers in rural Burma and those from Burma who have sought employment abroad, this report identifies the exploitative abuse underpinning poverty and livelihoods vulnerability in Burma which, in turn, are major factors motivating individuals to leave home and seek work abroad.

    Original Title

    Abuse, Poverty and Migration: Investigating migrants' motivations to leave home in Burma

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    International reporting of the large-scale migration of those leaving Burma in search of work abroad has highlighted the perils for migrant during travel and in host countries. However, there has been a lack of research in the root causes of this migration. Identifying the root causes of migration has important implications for the assistance and protection of these migrants. Drawing on over 150 interviews with villagers in rural Burma and those from Burma who have sought employment abroad, this report identifies the exploitative abuse underpinning poverty and livelihoods vulnerability in Burma which, in turn, are major factors motivating individuals to leave home and seek work abroad.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    101 views62 pages

    Abuse, Poverty and Migration: Investigating Migrants' Motivations To Leave Home in Burma

    Uploaded by

    Pugh Jutta
    International reporting of the large-scale migration of those leaving Burma in search of work abroad has highlighted the perils for migrant during travel and in host countries. However, there has been a lack of research in the root causes of this migration. Identifying the root causes of migration has important implications for the assistance and protection of these migrants. Drawing on over 150 interviews with villagers in rural Burma and those from Burma who have sought employment abroad, this report identifies the exploitative abuse underpinning poverty and livelihoods vulnerability in Burma which, in turn, are major factors motivating individuals to leave home and seek work abroad.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 62

    

    
    
    
    
    
    
    
    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ
    
    ,QYHVWLJDWLQJPLJUDQWV¶PRWLYDWLRQVWROHDYHKRPHLQ%XUPD
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    

     
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ
    ,QYHVWLJDWLQJPLJUDQWV¶PRWLYDWLRQVWROHDYHKRPHLQ%XUPD
    :ULWWHQDQGSXEOLVKHGE\WKH.DUHQ+XPDQ5LJKWV*URXS
    .+5*-XQH
    
    &RYHU SKRWR %XUPHVH PLJUDQWV FURVV WKH QDWXUDO ERXQGDU\ RI WKH 0RHL 5LYHU LQ
    )HEUXDU\LQRUGHUWRDFFHVVZRUNDQGWUDGHLQ7KDLODQG>3KRWR.+5*@
    
    %DFNFRYHUSKRWR5HVLGHQWVRI7¶5HH3RK*NZHHYLOODJHGR63'&VSRQVRUHGIRUFHG
    ODERXUGHOLYHULQJEDPERRVODWVWRWKH%XUPD$UP\FDPSDW*NODZ*N¶'WLK3D¶DQ
    'LVWULFWRQ$XJXVWVW>3KRWR.+5*@
    
    3URGXFWLRQDQGSULQWLQJRIWKLVUHSRUWZDVILQDQFHGE\&DQDGD)XQG
    
    7KH .DUHQ +XPDQ 5LJKWV *URXS .+5*  ZDV IRXQGHG LQ  DQG GRFXPHQWV WKH
    VLWXDWLRQ RI YLOODJHUV DQG WRZQVSHRSOH LQ UXUDO %XUPD WKURXJK WKHLU GLUHFW WHVWLPRQLHV
    VXSSRUWHGE\SKRWRJUDSKLFDQGRWKHUHYLGHQFH.+5*RSHUDWHVLQGHSHQGHQWO\DQGLV
    QRWDIILOLDWHGZLWKDQ\SROLWLFDORURWKHURUJDQLVDWLRQ([DPSOHVRIRXUZRUNFDQEHVHHQ
    RQOLQH DW ZZZNKUJRUJ  3ULQWHG FRSLHV PD\ EH REWDLQHG VXEMHFW WR DSSURYDO DQG
    DYDLODELOLW\E\VHQGLQJDUHTXHVWWRNKUJ#NKUJRUJ
    
    7KLVUHSRUWSXEOLVKHGE\.+5*‹.+5*$OOULJKWVUHVHUYHG&RQWHQWVPD\EH
    UHSURGXFHG RU GLVWULEXWHG RQ D QRWIRUSURILW EDVLV RU TXRWHG IRU PHGLD DQG UHODWHG
    SXUSRVHV EXW UHSURGXFWLRQ IRU FRPPHUFLDO SXUSRVHV UHTXLUHV WKH SULRU SHUPLVVLRQ RI
    .+5*
    
    7KLVUHSRUWLVQRWIRUFRPPHUFLDOVDOH

     
    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    &RQWHQWV
    
     ,QWURGXFWLRQDQGH[HFXWLYHVXPPDU\  
     1RWHVRQWKHWH[W  
     7HUPVDQGDEEUHYLDWLRQV  
     0DSV 
     0DS.DUHQGLVWULFWV  
     0DS%XUPD  
    
     %DFNJURXQG  
    
     'DWD6HW$EXVHVLQ63'&FRQWUROOHGDUHDVRI.DUHQ6WDWH 
    
     'DWD6HW3XVKIDFWRUVDQGPLJUDQWVWDWHPHQWV  
    
     'DWD6HW3XOOIDFWRUV  
    
     ,QWHUQDWLRQDOIUDPHZRUNV  
    
     ([SDQGLQJSURWHFWLRQ  

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ,QWURGXFWLRQDQGH[HFXWLYHVXPPDU\
    
    ³>7@KH PDMRULW\ RI WKH SHRSOH LQ P\ YLOODJH KDYH FRPH WR ZRUN LQ
    7KDLODQG7KH\GRQ¶WZDQWWRVWD\LQWKHLUYLOODJHEHFDXVHWKH\¶UHDIUDLG
    WKDWWKH\¶OOKDYHWRGRIRUFHGODERXU´
    .R0 PDOH 7KYLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    :KLOH%XUPD¶VUXOLQJ6WDWH3HDFHDQG'HYHORSPHQW&RXQFLO 63'& FRQWLQXHV
    WR FODLP WKDW WKH FRXQWU\ KDV UHDFKHG XQSUHFHGHQWHG OHYHOV RI SHDFH DQG
    GHYHORSPHQW RYHU WKH SDVW  \HDUVWHQVRIWKRXVDQGVRI%XUPHVHUHVLGHQWV
    FRQWLQXH WR OHDYH WKH FRXQWU\ HYHU\ \HDU LQ RUGHU WR ILQG D ZD\ WR VXUYLYH
    ,QGHHGDOOLQGLFDWLRQVVXJJHVWWKDWWKLVIORZRISHRSOHLVLQFUHDVLQJ
    
    7KHPDMRULW\RIWKRVHOHDYLQJ%XUPDKDYHVRXJKWRXWHPSOR\PHQWRSSRUWXQLWLHV
    DEURDG$QHVWLPDWHGWRPLOOLRQSHRSOHZKRKDYHOHIWWKHFRXQWU\FXUUHQWO\
    UHVLGH LQ 7KDLODQG  ,Q 0DOD\VLD WKH ZRUNLQJ SRSXODWLRQ IURP %XUPD LV
    HVWLPDWHG DW  ZLWK D IXUWKHU  WR  LQ 6LQJDSRUH  8S WR
     HWKQLF &KLQ ZKR KDYH IOHG ZHVWHUQ %XUPD FXUUHQWO\ OLYH LQ WKH QRUWK
    HDVWHUQ ,QGLDQ VWDWH RI 0L]RUDP  2Q WRS RI WKLV DSSUR[LPDWHO\ 
    5RKLQJ\D DOVR IURP ZHVWHUQ %XUPD KDYH VHWWOHG LQ HDVWHUQ %DQJODGHVK DQG
    UHPDLQ LQ ZKDW KDV EHHQ GHVFULEHG DV ³SUHFDULRXV FRQGLWLRQV LQ YLOODJHV DQG
    VHPLXUEDQVOXPV´
    

    
    
     )RU WKLV DQG RWKHU LQWHUYLHZV FRQGXFWHG ZLWK LQGLYLGXDOV IURP %XUPD FXUUHQWO\ UHVLGLQJ
    DEURDGWKHLUSODFHRIRULJLQUDWKHUWKDQWKHLUFXUUHQWORFDWLRQLVJLYHQLQWKHTXRWHWDJ
    
    6HHIRUH[DPSOH%XUPHVH5HIXJHHV(QGWKHH[SORLWDWLRQRI%XUPHVHLQ7KDLODQG5HIXJHHV
    ,QWHUQDWLRQDO1RYHPEHUWK$FFHVVHGDW
    KWWSZZZUHIXJHHVLQWHUQDWLRQDORUJVLWHVGHIDXOWILOHVEXUPHVHDOOBSGIRQ$SULOWK
    DQG 3HWHU %LUR ³7KH SOLJKW RI 7KDLODQG¶V PLJUDQW ZRUNHUV´ 5HXWHUV 0DUFK WK 
    $FFHVVHG DW KWWSZZZDOHUWQHWRUJGEEORJVKWP RQ $SULO WK
    
    
     6HH IRU H[DPSOH ³0\DQPDU
    V RYHUIORZ´ 7KH (FRQRPLVW 0DUFK WK   $FFHVVHG DW
    KWWSZZZHFRQRPLVWFRPZRUOGDVLDGLVSOD\VWRU\FIP"VWRU\BLG  IVUF UVVRQ0DUFK
    WKDQG.DYL&KRQJNLWWDYRUQ³+RZ)DU:LOOWKH7KDL*RYW5HDOO\*RWR3URWHFW0LJUDQW
    :RUNHUV"´ 7KH ,UUDZDGG\ 0DUFK WK   $FFHVVHG DW
    KWWSZZZLUUDZDGG\RUJSULQWBDUWLFOHSKS"DUWBLG RQ0DUFKWK
    
    ³0DOD\VLDQ7KDL2IILFLDOV7UDIILFNLQJ%XUPHVH0LJUDQWV"´,36-DQXDU\WK$FFHVVHG
    DWKWWSLSVQHZVQHWQHZVDVS"LGQHZV RQ0DUFKWK
    
    ³%XUPHVHPLJUDQWVLQGLUHVWUDLWVSRVWPHOWGRZQ´,QGHSHQGHQW0RQ1HZV$JHQF\'HFHPEHU
    WK$FFHVVHGDWKWWSZZZPRQQHZVLPQDFRPFRPPHQWDU\XSGDWHSKS",' RQ0DUFK
    WK
    
    ³µ:HDUH/LNH)RUJRWWHQ3HRSOH¶7KH&KLQ3HRSOHRI%XUPD8QVDIHLQ%XUPD8QSURWHFWHGLQ
    ,QGLD´ +XPDQ 5LJKWV :DWFKÜ -DQXDU\   $FFHVVHG DW
    KWWSZZZKUZRUJHQUHSRUWVZHDUHIRUJRWWHQSHRSOHRQ$SULOWK
    
     &KULV /HZD ³$VLD¶V QHZ ERDW SHRSOH´ )RUFHG 0LJUDWLRQ 5HYLHZ   ±   $SULO 
    S

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    2QO\ D VPDOO SHUFHQWDJH RI %XUPHVH SHRSOH ZKR KDYH PRYHG DEURDG DUH
    OHJDOO\ UHFRJQLVHG DV UHIXJHHV RU RWKHUZLVH RIILFLDOO\ DFNQRZOHGJHG DV IRUFHG
    PLJUDQWV HQWLWOHG WR KRVWJRYHUQPHQW RU 81 DVVLVWDQFH  7KHVH LQFOXGH
    DSSUR[LPDWHO\  LQGLYLGXDOV UHVLGLQJ ZLWKLQ  UHIXJHH FDPSV LQ
    7KDLODQG DERXW  81+&5UHFRJQLVHG UHIXJHHV LQ ,QGLD DQG 
    5RKLQJ\D UHVLGLQJ ZLWKLQ WZR RIILFLDOO\ UHFRJQLVHG UHIXJHH FDPSV LQ
    %DQJODGHVK
    
    :KLOH WKH H[SDWULDWH PLJUDQW SRSXODWLRQV IURP %XUPD ZRUNLQJ DEURDG KDYH
    EHHQJURZLQJVWHDGLO\IRUPRUHWKDQ\HDUVWKHLQWHUQDWLRQDOFRPPXQLW\KDV
    RQO\ UHFHQWO\ EHJXQ UHFRJQLVLQJ WKH LQVHFXULW\ WKHVH SHRSOH IDFH DW KRPH
    GXULQJ PLJUDWLRQ DQG LQ WKHLU KRVW FRXQWULHV  7KLV KHLJKWHQHG LQWHUQDWLRQDO
    DZDUHQHVV LV SDUWO\ GXH WR WKH REYLRXV LQFUHDVH LQ WKRVH OHDYLQJ %XUPD DQG
    SDUWO\ GXH WR HVSHFLDOO\ GUDPDWLF QHZV UHSRUWV RQ WKH VWUXJJOHV RI %XUPHVH
    PLJUDQWVDQGDV\OXPVHHNHUV7KHVHUHSRUWVLQFOXGHWKH$SULOLQFLGHQWLQ
    ZKLFK  LQGLYLGXDOV IURP %XUPD VXIIRFDWHG ZKLOH EHLQJ WUDQVSRUWHG LQ D
    FRQWDLQHUWUXFNWRDZRUNVLWHLQVRXWKHUQ7KDLODQG0RUHUHFHQWO\WKHODUJH
    QXPEHUVRI5RKLQJ\DERDWSHRSOHDUULYLQJLQ7KDLODQG0DOD\VLDDQG,QGRQHVLD
    KDYH SURPSWHG LQWHUQDWLRQDO VWDWHPHQWV RI FRQFHUQ DQG UHJLRQDO IRUXPV WR
    GLVFXVVWKHLVVXH
    
    &RQFXUUHQWZLWKWKLVPDVVLQIOX[RIPLJUDQWVLQWRQHLJKERXULQJFRXQWULHVWKHUH
    KDYH EHHQ RQJRLQJ GHEDWHV DERXW WKH DSSURSULDWH GHILQLWLRQV IRU FODVVLI\LQJ
    WKHVHPLJUDQWVDQGKRZWKHVHSHRSOHVKRXOGEHWUHDWHGE\KRVWJRYHUQPHQWV
    DQG LQWHUQDWLRQDO ERGLHV  7KH NH\ LVVXH KDV EHHQ ZKHWKHU DQG KRZ WR
    GLVWLQJXLVK EHWZHHQ UHIXJHHV DQG HFRQRPLF PLJUDQWV5HJLRQDOJRYHUQPHQWV
    UHFHLYLQJODUJHQXPEHUVRISHRSOHIURP%XUPDKDYHEHHQSDUWLFXODUO\VHQVLWLYH
    DERXW WKH SROLWLFDO DQG HFRQRPLF LPSOLFDWLRQV RI WKHLU DUULYDO  )RU H[DPSOH LQ
    UHVSRQVH WR D MRXUQDOLVW¶V TXHVWLRQ UHJDUGLQJ WKH 5RKLQJ\D ERDW SHRSOH 7KDL

    
    
    ³%XUPHVHERUGHUUHIXJHHVLWHVZLWKSRSXODWLRQILJXUHV´7KDLODQG%XUPD%RUGHU&RQVRUWLXP
    0DUFK   $FFHVVHG DW KWWSZZZWEEFRUJFDPSVPDUPDSWEEFXQKFUSGI RQ
    $SULO WK   7KH 7KDL JRYHUQPHQW GRHV QRW RIILFLDOO\ UHFRJQLVH WKRVH UHVLGLQJ ZLWKLQ
    7KDLODQGEDVHGFDPSVDVUHIXJHHVEXWDVSHUVRQV³WHPSRUDULO\IOHHLQJILJKWLQJ´
    
     81+&5 6WDWLVWLFDO <HDUERRN  8QLWHG 1DWLRQV +LJK &RPPLVVLRQ IRU 5HIXJHHV
    $FFHVVHG DW KWWSZZZXQKFURUJFJLELQWH[LVYW[VWDWLVWLFVRSHQGRFSGI RQ 0DUFK WK 
    0RUHUHFHQW81+&56WDWLVWLFDO<HDUERRNVGRQRWGLYLGHFRXQWULHV¶UHIXJHHSRSXODWLRQVWDWLVWLFV
    E\FRXQWU\RIRULJLQ+XPDQ5LJKWV:DWFKUHSRUWHGLQ-DQXDU\ ³:H$UH/LNH)RUJRWWHQ
    3HRSOH´7KH&KLQ3HRSOHRI%XUPD8QVDIHLQ%XUPD8QSURWHFWHGLQ,QGLD WKDW&KLQ
    SHRSOH ± WKH ODUJHVW HWKQLF JURXS DPRQJVW %XUPHVH UHIXJHHV LQ ,QGLD ± KDG EHHQ JUDQWHG
    81+&5UHFRJQLVHGUHIXJHHVWDWXV
    
     &KULV /HZD ³$VLD¶V QHZ ERDW SHRSOH´ )RUFHG 0LJUDWLRQ 5HYLHZ   ±  $SULO 
    S
    
     ³%XUPD PLJUDQWV VXIIRFDWH LQ ORUU\´ %%& $SULO WK   $FFHVVHG DW
    KWWSQHZVEEFFRXNKLDVLDSDFLILFVWPRQ0DUFKWK
    
    ³81WRERRVWIRFXVRQ0\DQPDU
    V0XVOLPERDWSHRSOH´$)30DUFKWK

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    3ULPH 0LQLVWHU $EKLVLW 9HMMDMLYD UHSOLHG ³/HW¶V JHW WKDW VWUDLJKW ± WKH\¶UH QRW
    UHIXJHHVWKH\¶UHMXVWLOOHJDOPLJUDQWV´
    
    $SSURDFKRIWKLVUHSRUW
    
    :LWKLQWKHFRQWH[WRIRQJRLQJPDVVPLJUDWLRQZLWKLQDQGRXWRI%XUPDDQGWKH
    RQJRLQJ GHEDWHV DERXW KRZ WKHVH SHRSOH DUH GHILQHG WKLV UHSRUW VHHNV WR
    DQVZHUWKHIROORZLQJTXHVWLRQV
    
    :KDWFDXVHVSHRSOHWROHDYHWKHLUKRPHVLQ%XUPDDQGVHHN
    HFRQRPLFRSSRUWXQLWLHVHOVHZKHUH"
    
    'RLQWHUQDWLRQDOIUDPHZRUNVDFFXUDWHO\UHIOHFWWKHVHFDXVHVDQG
    DGGUHVVWKHSURWHFWLRQQHHGVRIWKHVHSHRSOH"
    
    7R DQVZHU WKHVH TXHVWLRQV WKLV UHSRUW GUDZV RQ WZR VHSDUDWH GDWD VHWV
    FRQVLVWLQJ RI RYHU  LQWHUYLHZV FROOHFWHG DQG WUDQVODWHG E\ .+5*
    UHVHDUFKHUV EHWZHHQ $XJXVW  DQG 0DUFK   7KH ILQGLQJV RI WKLV
    UHVHDUFKVWUHQJWKHQDQGJLYHDKXPDQIDFHWRWKHPDLQDVVHUWLRQRIWKLVUHSRUW
    WKH YDVW PDMRULW\ RI WKRVH ZKR OHDYH %XUPD DQG VHHN ZRUN DEURDG DUH QRW
    OHDYLQJ KRPH VLPSO\ WR ILQG EHWWHU HFRQRPLF RSSRUWXQLWLHV DV D PDWWHU RI
    SHUVRQDOFRQYHQLHQFHEXWDUHLQVWHDGIOHHLQJOLIHWKUHDWHQLQJSRYHUW\WKDWLVD
    GLUHFWUHVXOWRIH[SORLWDWLYH63'&SROLFLHV
    
    7KH ILUVW GDWD VHW LV FRPSULVHG RI  LQWHUYLHZV FRQGXFWHG ZLWK UHVLGHQWV RI
    63'&FRQWUROOHG DUHDV LQ .DUHQ 6WDWH IURP ODWH  WR WKH HQG RI 
    7KHVHDUHDVLQFOXGH3D¶DQ'RRSOD\D7KDWRQDQG1\DXQJOHELQGLVWULFWV7KLV
    UHSRUW IRFXVHV RQ WKH PRVW KHDYLO\ 63'&FRQWUROOHG SDUWV RI .DUHQ 6WDWH LQ
    RUGHUWRH[DPLQHWKHHYHU\GD\H[SORLWDWLYHDEXVHVFRPPRQXQGHU63'&UXOHLQ
    UXUDO DUHDV DQG WKH LPSDFW WKRVH DEXVHV KDYH RQ SRYHUW\ OLYHOLKRRGV
    YXOQHUDELOLW\ DQG IRRG LQVHFXULW\  )XUWKHUPRUH LW LV SULPDULO\ IURP 63'&
    FRQWUROOHG DUHDV UDWKHU WKDQ PRUHFRQWHVWHGDUHDVOLNHPRXQWDLQRXVQRUWKHUQ
    .DUHQ 6WDWH  WKDW PLJUDQW ZRUNHUV W\SLFDOO\ FRPH  7KLV UHSRUW XVHV ERWK WKH
    
    
    ³/XQFKZLWKWKH)7±$EKLVLW9HMMDMLYD´)LQDQFLDO7LPHV)HEUXDU\WK$FFHVVHGDW
    KWWSZZZIWFRPFPVVGEIGGFEKWPO RQ )HEUXDU\ WK
    
    
     :KLOH WKLV UHSRUW IRFXVHV RQ WKH VSHFLILF FDXVHV RI PLJUDWLRQ IURP %XUPD WKH ZLGHU LVVXHV
    GLVFXVVHG EHORZ ± LQFOXGLQJ DSSURSULDWH GHILQLWLRQV IRU YDULRXV W\SHV RI PLJUDQWV DQG FXUUHQW
    LQWHUQDWLRQDOSURWHFWLRQIUDPHZRUNVIRUPLJUDQWV±DSSO\WRPDQ\FRXQWULHV,QGHHGWKLVUHSRUW
    VHHNVWRERWKDGGUHVVWKHVSHFLILFSUREOHPVWKDWFXUUHQWO\SODJXHSHRSOHZKROHDYHWKHLUKRPHV
    LQ%XUPDDQGWKHLQWHUQDWLRQDOFRPPXQLW\¶VIDLOXUHWRSURWHFWDQ\SHRSOHZKRPLJUDWHEHFDXVH
    WKH\ DUH QR ORQJHU DEOH WR DFFHVV EDVLF JRRGV DQG ULJKWV DW KRPH  %XUPD UHTXLUHV VSHFLDO
    DWWHQWLRQEHFDXVHRIWKH63'&¶VHVSHFLDOO\KDUVKDQGZLGHVSUHDGDEXVHVDJDLQVWLWVRZQFLWL]HQV
    HVSHFLDOO\ WKRVH LQ WKH UXUDO DUHDV RI WKH VWDWH  :LWK WKDW VDLG PDQ\ RI WKH SRLQWV GLVFXVVHG
    EHORZFDQ±DQGVKRXOG±EHDSSOLHGWRRWKHUFDVHVRIH[SORLWDWLRQDQGPDVVPLJUDWLRQFXUUHQWO\
    WDNLQJSODFHLQRWKHUDUHDVRIWKHZRUOG

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    VWDWLVWLFDO GDWD DQG SHUVRQDO WHVWLPRQLHV IURP WKHVH LQWHUYLHZV WR GLVFXVV WKH
    HQYLURQPHQWRIKXPDQULJKWVDEXVHDQGUHVXOWLQJSRYHUW\LQWKRVHGLVWULFWV
    
    7KH VHFRQG GDWD VHW LV FRPSULVHGRILQWHUYLHZVFRQGXFWHGZLWKLQGLYLGXDOV
    IURP %XUPD FXUUHQWO\ OLYLQJ DQG ZRUNLQJ LQ 7KDLODQG WKDW ZHUH KHOG EHWZHHQ
    -DQXDU\DQG0DUFK7KHVHLQWHUYLHZVZHUHGHVLJQHGLQRUGHUWRILQGRXW
    WKHUHDVRQVZK\WKHVHSHRSOHGHFLGHGWROHDYH%XUPD:KLOHWKHUHZHUHILYH
    LQWHUYLHZHHV ZKR FDPH IURP XUEDQ DUHDV 5DQJRRQ 0RXOPHLQ DQG 3HJX
    7RZQ  RYHU  RULJLQDOO\ FDPH IURP UXUDO SDUWV RI (DVWHUQ %XUPD
    ,QWHUYLHZHHV ZHUH DVNHG WR GHVFULEH WKHLU IRUPHU OLYHV LQFOXGLQJ WKHLU
    SURIHVVLRQV LQ %XUPD FRVW RI OLYLQJ IDFWRUV LQIOXHQFLQJ WKHLU FKRLFH WR OHDYH
    KRPH DQG ZKHWKHU WKH\ KDG HQGXUHG DQ\ KXPDQ ULJKWV DEXVHV LQ WKHLU KRPH
    DUHDV7KHGDWDDQGTXRWHVWDNHQIURPWKHVHLQWHUYLHZVKHOSWRLOOXPLQDWHWKH
    UHODWLRQVKLSVEHWZHHQDEXVHSRYHUW\DQGPLJUDWLRQ
    
    2I FRXUVH WKHUH LV QR ZD\ WR HVWDEOLVK KRZ PDQ\ RI WKRVH ZKR ZHUH
    LQWHUYLHZHG LQ .DUHQ 6WDWH DQG FLWHG DEXVH VXEVHTXHQWO\ GHFLGHG WR OHDYH
    %XUPDWRILQGZRUNDEURDG7KHUHIRUHWKHVHWZRGDWDVHWVVKRXOGEHYLHZHG
    DVFRPSOHPHQWDU\UDWKHUWKDQGLUHFWO\OLQNHG:LWKWKDWLQPLQG.+5*ZLVKHG
    WRVHHZKHWKHUWKHDEXVHVZKLFKPLJUDQWVFLWHGDVIDFWRUVFRPSHOOLQJWKHPWR
    OHDYH%XUPDUHVHPEOHGWKRVHWKDWZHUHFLWHGE\UHVLGHQWVRI.DUHQ6WDWH$V
    WKLVUHSRUWZLOOGHPRQVWUDWHWKHDEXVHVFLWHGLQWKHWZRGDWDVHWVDUHH[WUHPHO\
    VLPLODU  %RWK FXUUHQW UHVLGHQWV RI .DUHQ 6WDWH DQG WKRVH IURP %XUPD QRZ
    ZRUNLQJLQ7KDLODQGRYHUZKHOPLQJO\FLWHGH[SORLWDWLYHGHPDQGVDQGUHVWULFWLRQV
    DVEHLQJWKHPRVWSUHYDOHQWIRUPVRIDEXVHZKLFKWKH\VXVWDLQHGRUZLWQHVVHG
    LQ%XUPD)XUWKHUPRUHLQWHUYLHZHHVH[SODLQHGWKDWWKHVHDEXVHVVLJQLILFDQWO\
    HURGHGILQDQFLDODQGIRRGVHFXULW\
    
    7KHPDWFKEHWZHHQWKHVHGDWDVHWVVXJJHVWVWKDW63'&DEXVHVLQUXUDO%XUPD
    FRQWULEXWHWRDOLIHWKUHDWHQLQJOHYHORISRYHUW\IRUYLOODJHUVDQGWKDWWKDWSRYHUW\
    LQWXUQIRUFHVYLOODJHUVWROHDYHWKHLUKRPHVDQGVHHNZRUNDEURDGLQRUGHUWR
    VXUYLYH
    
    )UDPLQJPLJUDWLRQ
    
    &RQYHQWLRQDOO\FODVVLILFDWLRQDVDUHIXJHHRULQWHUQDOO\GLVSODFHGSHUVRQ ,'3 
    DV RSSRVHG WR DQ HFRQRPLF PLJUDQW LV EDVHG RQ ZKDW SXVK DQG SXOO IDFWRUV
    LQIOXHQFH LQGLYLGXDO DFWV RI PLJUDWLRQ  :KHUHDV SXVK IDFWRUV UHIHU WR
    XQGHVLUDEOHFRQGLWLRQVDWSODFHVRIRULJLQZKLFKµSXVK¶SHRSOHWRVHHNDEHWWHU
    VLWXDWLRQ HOVHZKHUH SXOO IDFWRUV UHIHU WR WKRVH SRVLWLYH IHDWXUHV RI D QHZ
    ORFDWLRQZKLFKµSXOO¶LQGLYLGXDOVWRZDUGVLW
    
    5HIXJHHV DQG ,'3V DUH XQGHUVWRRG WR KDYH KDG OLWWOH FKRLFH DERXW PLJUDWLQJ
    DQG ZHUH SXVKHG RXW RI WKHLU KRPHV  0RUH VSHFLILFDOO\ WKH &RQYHQWLRQ
    UHODWLQJ WR WKH 6WDWXV RI 5HIXJHHV GHILQHV UHIXJHHV DV WKRVH ZKR KDYH EHHQ
    FRPSHOOHG WR OHDYH WKHLU FRXQWU\ RI RULJLQ GXH WR SHUVHFXWLRQ RQ JURXQGV RI

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ³UDFH UHOLJLRQ QDWLRQDOLW\ PHPEHUVKLS RI D SDUWLFXODU VRFLDO JURXS RU SROLWLFDO
    RSLQLRQ´/HVVFRQYHQWLRQDOO\WKHWHUPKDVEHHQXVHGE\VRPHDGYRFDWHVDQG
    DLGDJHQFLHVWRDOVRFRYHUWKRVHZKRKDYHIOHGLPPLQHQWSK\VLFDOWKUHDWVGXH
    WRDUPHGFRQIOLFWRUQDWXUDOGLVDVWHUV7KHGHILQLWLRQRI,'3VDFFRUGLQJWRWKH
    *XLGLQJ3ULQFLSOHVRQ,QWHUQDO'LVSODFHPHQWLQFOXGHVWKRVHGLVSODFHGE\
    SHUVHFXWLRQ DUPHG FRQIOLFW YLRODWLRQV RI KXPDQ ULJKWV QDWXUDO GLVDVWHUV RU
    ODUJHVFDOHGHYHORSPHQWSURMHFWVEXWZKRKDYHQRWFURVVHGDQLQWHUQDWLRQDOO\
    UHFRJQLVHG6WDWHERUGHU
    
    %\FRQWUDVWHFRQRPLFPLJUDQWVDUHXQGHUVWRRGDVLQGLYLGXDOVZKRZKLOHDEOH
    WR UHPDLQ DW WKHLU SODFHV RI RULJLQ IUHHO\ FKRRVH PLJUDWLRQ LQ RUGHU WR DFFHVV
    EHWWHUHFRQRPLFRSSRUWXQLWLHVDEURDG7KHFKRLFHPDGHLVRIWHQYLHZHGDVD
    PDWWHURISHUVRQDOFRQYHQLHQFHUDWKHUWKDQVXUYLYDO8OWLPDWHO\UHIXJHHVDQG
    ,'3VDUHVHHQDVEHLQJSXVKHGIURPWKHLUKRPHV DQGKHQFHKDYHQRFKRLFH 
    ZKLOHHFRQRPLFPLJUDQWVVXSSRVHGO\GHFLGHIUHHO\WREHSXOOHGWRZDUGVEHWWHU
    HFRQRPLFRSSRUWXQLWLHVDEURDG
    
    .+5*¶VUHVHDUFKILQGLQJV
    
    )UDPLQJ.+5*¶VUHVHDUFKLQWHUPVRISXVKDQGSXOOIDFWRUVLVQRWDQDEVWUDFW
    H[HUFLVH ± SROLF\PDNHUV LQ JRYHUQPHQWV DQG LQWHUQDWLRQDO ERGLHV XVH WKHVH
    GLVWLQFWLRQVLQRUGHUWRGHWHUPLQHZKRUHFHLYHVYLWDOKXPDQLWDULDQDLGDVZHOODV
    OHJDO DQG RWKHU SURWHFWLRQ  $QG ZKDW .+5*¶V UHVHDUFK GHPRQVWUDWHV LV WKDW
    WKHUH LV QR VWULFW VHSDUDWLRQ RI SXVK DQG SXOO IDFWRUV ZKHQ LW FRPHV WR SHRSOH
    ZKROHDYH%XUPD
    
    ,Q 'DWD 6HW  WKH LQIRUPDWLRQ FROOHFWHG IURP  LQWHUYLHZV ZKLFK .+5*
    FRQGXFWHG LQ 63'&FRQWUROOHG .DUHQ 6WDWH LQGLFDWH WKDW WKH RYHUZKHOPLQJ
    PDMRULW\RIDEXVHVIDFHGE\YLOODJHUVLQWKHVHDUHDVDUHH[SORLWDWLYHLQFKDUDFWHU
    DQGVLJQLILFDQWO\LPSDFWSRYHUW\OLYHOLKRRGVYXOQHUDELOLW\DQGIRRGLQVHFXULW\
    
    7KHPRVWSUHYDOHQWO\FLWHGDEXVHVIRXQGLQWKHVHLQWHUYLHZVZHUHIRUFHGODERXU
    RILQWHUYLHZHHV H[WRUWLRQ  ORRWLQJE\63'&DQG'HPRFUDWLF.DUHQ
    %XGGKLVW $UP\ '.%$  IRUFHV   DQG PRYHPHQW UHVWULFWLRQV   ± DOO
    DEXVHVXVHGWRH[SORLWYLOODJHUV¶UHVRXUFHV:KLOHOHVVIUHTXHQWO\FLWHGFDVHV
    RIDUELWUDU\WD[DWLRQZHUHDOVRQRWHGE\LQWHUYLHZHHVDVDIRUPRIH[SORLWDWLRQLQ
    .DUHQ6WDWH,QDGGLWLRQWRWKHVHH[SORLWDWLYHDEXVHVLQWHUYLHZHHVDOVRFLWHG
    
    
    :KLOHVRPHLQWHUYLHZHHVDOVRFLWHGIRUPVDEXVHW\SLFDOO\DVVRFLDWHGZLWKRYHUWDUPHGFRQIOLFW
    DQG SHUVHFXWLRQ RIWHQ FRQQHFWHG WR 63'& DQG '.%$ FRXQWHULQVXUJHQF\ RSHUDWLRQV  WKHVH
    FDVHVZHUHIHZHULQQXPEHU+RZHYHULWLVLPSRUWDQWWRQRWHWKDWHYHQWKRVHDEXVHVVHHPLQJO\
    FRQQHFWHG WR DUPHG FRQIOLFW DQG SHUVHFXWLRQ DUH DOVR IUHTXHQWO\ XVHG WR IDFLOLWDWH H[SORLWDWLRQ
    VXFK DV ZKHUH IRUFHG UHORFDWLRQ LQWR 63'&FRQWUROOHG VLWHV RU DUELWUDU\ GHWHQWLRQ DUH XVHG WR
    H[WRUWIXQGV 
    
    :KLOH.+5*KDVLQRWKHUUHSRUWVGRFXPHQWHGFDVHVRIDUELWUDU\WD[DWLRQE\.DUHQ1DWLRQDO
    /LEHUDWLRQ $UP\ .1/$  WURRSV QRQH RI WKH LQWHUYLHZHHV FLWHG LQ WKLV UHSRUW VSHFLILFDOO\
    LGHQWLILHGDQ\GHPDQGVE\.1/$SHUVRQQHO

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    LQFLGHQWVRIDUELWUDU\DUUHVWH[HFXWLRQVLQWLPLGDWLRQODQGPLQHVVFRUFKHGHDUWK
    WDFWLFV VXFK DV UD]LQJ ZKROH YLOODJHV IDUP ILHOGV DQG IRRG VWRUHV DQG NLOOLQJ
    OLYHVWRFN DQGWRUWXUH
    
    'DWD6HWFRQWDLQVLQIRUPDWLRQWDNHQIURPLQWHUYLHZV.+5*FRQGXFWHGZLWK
    7KDLODQGEDVHG%XUPHVHPLJUDQWVEHWZHHQ-DQXDU\DQG0DUFK2XWRI
    WKHLQGLYLGXDOVLQWHUYLHZHG URXJKO\ FLWHGH[SORLWDWLYHDEXVHV PRVW
    FRPPRQO\FRPPLWWHGE\63'&VROGLHUVDQGRWKHU6WDWHDXWKRULWLHV DVIDFWRUV
    WKDW QHJDWLYHO\ DIIHFWHG WKHLU HFRQRPLF VLWXDWLRQV LQ %XUPD  7KH H[SORLWDWLYH
    DEXVHV FLWHG E\ WKLV JURXS RI LQWHUYLHZHHV LQFOXGHG IRUFHG ODERXU DUELWUDU\
    WD[DWLRQH[WRUWLRQDQGODQGFRQILVFDWLRQDVZHOODVPRYHPHQWUHVWULFWLRQVXVHG
    WRIDFLOLWDWHGHPDQGV2XWRIWKHVHIRUFHGODERXUZDVWKHVLQJOHPRVWFRPPRQ
    IRUPRIDEXVHZLWKSHRSOH DERXW FLWLQJLWDVDUHJXODURFFXUUHQFHLQ
    WKHLUKRPHFRPPXQLWLHV
    
    %OXUULQJWKHOLQHEHWZHHQSXVKDQGSXOOIDFWRUV
    
    7KDLODQGEDVHG LQWHUYLHZHHV H[SODLQHG WR .+5* KRZ H[SORLWDWLYH DEXVHV
    LQFUHDVHG SRYHUW\ OLYHOLKRRGV YXOQHUDELOLW\ DQG IRRG LQVHFXULW\ IRU WKHPVHOYHV
    DQG WKHLU FRPPXQLWLHV LQ %XUPD  7KHVH LVVXHV ZHUH LQ WXUQ FLWHG DV FHQWUDO
    SXVKIDFWRUVFRPSHOOLQJWKHPWROHDYHWKHLUKRPHVDQGVHDUFKIRUZRUNDEURDG
    ,Q VRPH FDVHV LQWHUYLHZHHV H[SODLQHG WKDW WKH KDUPIXO HIIHFWV RI H[SORLWDWLYH
    DEXVHZHUHFRPSRXQGHGE\HQYLURQPHQWDODQGHFRQRPLFIDFWRUVVXFKDVIORRG
    DQGGURXJKWDQGOLPLWHGDFFHVVWRGHFHQWZDJHODERXU
    
    :KLOH WKH LQGLYLGXDOV LQWHUYLHZHG E\ .+5* LQ 7KDLODQG ZRXOG QRUPDOO\ EH
    FODVVLILHG DV µHFRQRPLF PLJUDQWV¶ WKH IDFWRUV ZKLFK WKH\ FLWHG DV PRWLYDWLQJ
    WKHLUFKRLFHWRPLJUDWHPDNHLWFOHDUWKDW63'&DEXVHPDGHLWGLIILFXOWIRUWKHP
    WR VXUYLYH LQ WKHLU KRPH DUHDV  +HQFH WKHVH SHRSOH GHFLGHG WR EHFRPH
    PLJUDQWV QRW VLPSO\ EHFDXVH WKH\ ZHUH OXUHG WR 7KDLODQG E\ HFRQRPLF
    LQFHQWLYHVEXWEHFDXVHWKH\IRXQGLWLPSRVVLEOHWRVXUYLYHDWKRPHLQ%XUPD
    &OHDUO\WKHGLVWLQFWLRQEHWZHHQSXVKDQGSXOOIDFWRUVLVEOXUUHGLQWKHFDVHRI
    %XUPHVHPLJUDQWV
    
    7KHFRQFHSWRISXOOIDFWRUVIRUPLJUDQWVLVIXUWKHUFRPSOLFDWHGEHFDXVHPLJUDQWV
    DUHQRWPHUHO\VHHNLQJEHWWHUMREVDEURDGEXWDUHLQVWHDGSXOOHGWRSODFHVOLNH
    7KDLODQGDQG0DOD\VLDLQRUGHUWRDFFHVVSURWHFWLRQ)RUUHIXJHHVDQG,'3V
    SURWHFWLRQ LV D VHUYLFH WKDW LV RIWHQ SURYLGHG E\ JRYHUQPHQW ERGLHV 81
    DJHQFLHVDQGLQWHUQDWLRQDO1*2V)RUUHIXJHHVLQSDUWLFXODUSURWHFWLRQLVRIWHQ
    SULPDULO\XQGHUVWRRGWRPHDQOHJDOSURWHFWLRQDJDLQVWUHIRXOHPHQW ± GHILQHGDV
    WKH H[SXOVLRQ RI D SHUVRQ WR D SODFH ZKHUH WKH\ ZRXOG IDFH SHUVHFXWLRQ
    %H\RQG OHJDO SURWHFWLRQ DJDLQVW UHIRXOHPHQW DLG DJHQFLHV KDYH LPSOHPHQWHG

    
    
     7KHUH ZHUH DOVR D IHZ FDVHV FLWHG RI SHUVHFXWLRQ DQG KDUDVVPHQW RQ SROLWLFDO JURXQGV
    LQFOXGLQJWKUHHLQFLGHQWVRIDUELWUDU\GHWHQWLRQDQGIRXULQFLGHQWVRILQWLPLGDWLRQ

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    VSHFLILF IRUPV RI ULJKWVEDVHG DVVLVWDQFH VXFK DV JHQGHUEDVHG YLROHQFH


    SURJUDPPHVDVSDUWRIWKHLUSURWHFWLRQPDQGDWHV
    
    +RZHYHUIRUPLJUDQWVIURP%XUPDWKHDFWRIOHDYLQJKRPHLVRYHUZKHOPLQJO\D
    VHOILQLWLDWHGSURWHFWLRQVWUDWHJ\WKURXJKZKLFKLQGLYLGXDOVFDQHQVXUHWKHLUDQG
    WKHLU IDPLOLHV¶ EDVLF VXUYLYDO LQ WKH IDFH RI SHUVLVWHQW H[SORLWDWLYH DQG RWKHU
    DEXVH LQ WKHLU KRPH DUHDV  7KLV EURDGHU XQGHUVWDQGLQJ RI SURWHFWLRQ JRHV
    EH\RQGOHJDOSURWHFWLRQDJDLQVWUHIRXOHPHQWDQGWKHWRSGRZQGHOLYHU\RIULJKWV
    EDVHGDVVLVWDQFHE\DLGDJHQFLHV,WLQYROYHVDFWLRQVWDNHQE\LQGLYLGXDOVRQ
    WKHLURZQDFFRUGWROHVVHQRUDYRLGDEXVHDQGLWVKDUPIXOHIIHFWVDWKRPH
    
    .+5*KDVFKRVHQWRXVHWKHWHUPVHOILQLWLDWHGSURWHFWLRQVWUDWHJ\UDWKHUWKDQ
    DPRUHJHQHULFFRQFHSWOLNHµVXUYLYDOVWUDWHJ\¶LQRUGHUWRKLJKOLJKWWKHSROLWLFDO
    DJHQF\ RI WKRVH ZKR FKRRVH VXFK PLJUDWLRQ  %\ VHHLQJ WKLV SURWHFWLRQ LQ
    SROLWLFDO WHUPV RQH FDQ EHWWHU XQGHUVWDQG ERWK WKH DEXVLYH XQGHUSLQQLQJV RI
    PLJUDWLRQ IURP %XUPD DV ZHOO DV WKH UHOHYDQFH RI VXFK PLJUDWLRQ WR WKH
    SURWHFWLRQ PDQGDWHV RI JRYHUQPHQWV 81 DJHQFLHV DQG LQWHUQDWLRQDO 1*2V
    FXUUHQWO\SURYLGLQJVXSSRUWWRFRQYHQWLRQDOUHIXJHHSRSXODWLRQV8QGHUVWDQGLQJ
    SURWHFWLRQLQWKLVZD\SUHVHQWVRSSRUWXQLWLHVIRUH[WHUQDOVXSSRUWIRUWKHPDQ\
    VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV LQFOXGLQJ HIIRUWV WR VHFXUH HPSOR\PHQW
    ZLWKRXW H[SORLWDWLRQ VXSSRUW GHSHQGHQW IDPLO\ PHPEHUV HQURO FKLOGUHQ LQ
    VFKRRO DQG DYRLG DUUHVW H[WRUWLRQ DQG GHSRUWDWLRQ  ZKLFK PLJUDQW ZRUNHUV
    UHJXODUO\XVH
    
    ,QWHUQDWLRQDOIUDPHZRUNVDQGWKHLUDSSOLFDWLRQ
    
    *LYHQWKHIDFWRUVSURPSWLQJSHRSOHWROHDYH%XUPDLQVHDUFKRIZRUNDEURDG
    PRVW RI WKHVH LQGLYLGXDOV FDQ EH PRVW DFFXUDWHO\ XQGHUVWRRG DV OLYHOLKRRGV
    UHIXJHHV7KHVHLQGLYLGXDOVKDYHOHJLWLPDWHSURWHFWLRQFRQFHUQVDQGXVHWKHLU
    RZQ VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV LH EHFRPLQJ PLJUDQWV DQG WDNLQJ RQ
    HPSOR\PHQW LQRUGHUWRVXUYLYH
    
    .HHSLQJLQPLQGWKHYDULRXVUHDVRQVLQIOXHQFLQJPLJUDWLRQIURPKRPHDUHDVLQ
    %XUPDWKHVHFRQGRIWKLVUHSRUW¶VTXHVWLRQVFDQQRZEHDGGUHVVHGGRH[LVWLQJ
    LQWHUQDWLRQDO KXPDQ ULJKWV ODZV IUDPHZRUNV DQG QRUPV DFFXUDWHO\ UHIOHFW WKH
    FDXVHV RI HPLJUDWLRQ IURP %XUPD DQG DGGUHVV WKH SURWHFWLRQ QHHGV RI WKHVH
    PLJUDQWSRSXODWLRQV"$IWHUH[DPLQLQJWKRVHODZVDQGQRUPVLWEHFRPHVFOHDU
    WKDWWKHDQVZHULVDGHILQLWLYHQR
    
    
     7KLV DSSURDFK LV LQ OLQH ZLWK WKDW RI WKH ,QWHUQDWLRQDO &RPPLWWHH RI WKH 5HG &URVV ZKLFK
    GHILQHVSURWHFWLRQDV³DOODFWLYLWLHVDLPHGDWREWDLQLQJIXOOUHVSHFWIRUWKHULJKWVRILQGLYLGXDOV
    LQDFFRUGDQFHZLWKWKHOHWWHUDQGWKHVSLULWRIWKHUHOHYDQWERGLHVRIODZ LHKXPDQULJKWVODZ
    LQWHUQDWLRQDOKXPDQLWDULDQODZDQGUHIXJHHODZ ´ 3URWHFWLRQRI,QWHUQDOO\'LVSODFHG3HUVRQV
    ,QWHU$JHQF\ 6WDQGLQJ &RPPLWWHH  S    ,Q SUDFWLFH VXFK SURWHFWLRQ FRYHUV VWUDWHJLHV
    DLPHGDWDPRQJVWRWKHUWKLQJVSUHYHQWLQJDQGPLWLJDWLQJDEXVH *URZLQJWKH6KHOWHULQJ7UHH
    3URWHFWLQJ 5LJKWV WKURXJK +XPDQLWDULDQ $FWLRQ ,QWHU$JHQF\ 6WDQGLQJ &RPPLWWHH  S
     

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    'HVSLWHWKHPXOWLSOHRIWHQRYHUODSSLQJPRWLYDWLQJIDFWRUVLQPLJUDWLRQFXUUHQW
    LQWHUQDWLRQDO OHJDO UHJLPHV DQG QRUPV DWWHPSW WR SODFH %XUPHVH ZKR OHDYH
    WKHLUKRPHVLQWRRQHRIWKUHHQDUURZRIWHQULJLGO\GHILQHGFDWHJRULHVUHIXJHHV
    ,'3VRUHFRQRPLFPLJUDQWV
    
    2I WKHVH WKUHH FDWHJRULHV SHRSOH ZKR DUH UHIHUUHG WR DV µHFRQRPLF PLJUDQWV¶
    DUH E\ IDU WKH PRVW SRRUO\ GHILQHG OHDVW SURWHFWHG JURXS ,QGHHG IRU VHYHUDO
    GHFDGHVQRZOHJDOWKLQNHUVDQGSROLF\PDNHUVDOLNHKDYHVWUXJJOHGWRFUHDWHD
    VDWLVIDFWRU\ GHILQLWLRQ RI ZKDW FRQVWLWXWHVDQHFRQRPLFPLJUDQW$QLVVXHWKDW
    KDV FRQWULEXWHG WR WKLV OHJDO VWDOHPDWH LV WKH SUREOHP RI GHOLQHDWLQJ EHWZHHQ
    YROXQWDU\ DQG LQYROXQWDU\ PLJUDWLRQ  $V KDV EHHQ GLVFXVVHG DERYH PDQ\
    SHRSOH FRQWLQXH WR DVVXPH WKDW HFRQRPLF PLJUDWLRQ LV D FKRLFH WKDW LV IUHHO\
    PDGHE\WKHPLJUDQW:KLOHWKDWPLJKWEHWUXHLQVRPHFRXQWULHVWKHILQGLQJV
    RI.+5*¶VLQWHUYLHZVZLWK%XUPHVHPLJUDQWVPDNHVLWFOHDUWKDWWKHGHFLVLRQWR
    PLJUDWH IURP %XUPD RIWHQ LVQ¶W VROHO\ PDGH RXW RI D GHVLUH WR ILQG PDUJLQDOO\
    EHWWHUILQDQFLDOVHFXULW\EXWLVRIWHQPDGHEHFDXVHLWLVWKHRQO\ZD\WKDWWKDW
    SHUVRQRUIDPLO\FDQVXUYLYH
    
    ,Q VWDUN FRQWUDVW WR WKH FDVH RI HFRQRPLF PLJUDQWV WKH LQWHUQDWLRQDO OHJDO
    SURWHFWLRQ DIIRUGHG WR UHIXJHHV LV E\ IDU WKH PRVW UREXVW RI WKH WKUHH
    IUDPHZRUNV H[DPLQHG KHUH  ,WV VWUHQJWK GHULYHV LQ ODUJH SDUW IURP D ORQJ
    HVWDEOLVKHG LQWHUQDWLRQDO FRQVHQVXV WKDW SURWHFWLRQ PXVW EH JLYHQ WR SHRSOH
    ZKR DUH IRUFHG WR OHDYH WKHLU KRPH FRXQWULHV GXH WR SROLWLFDO DQG VRFLDO
    SHUVHFXWLRQ%XWIRUDFRXQWU\RIRYHUPLOOLRQSHRSOHZKROLYHXQGHU63'&
    RSSUHVVLRQWKHUHDUHQRWRQO\PRUHUHIXJHHVWKDQDUHFXUUHQWO\UHFRJQLVHGEXW
    DOVRPLOOLRQVRI%XUPHVHZKRKDYHEHHQODEHOOHGµHFRQRPLFPLJUDQWV¶EXWKDYH
    LQIDFWIOHGWKHFRXQWU\LQRUGHUWRVXUYLYH7KHLQWHUYLHZVFRQGXFWHGE\.+5*
    ERWKZLWKLQ.DUHQ6WDWHDQGDEURDGLQGLFDWHWKDWPDQ\%XUPHVHKDYHOHIWWKHLU
    KRPHV QRW EHFDXVH WKH\ ZHUH VSHFLILFDOO\ LGHQWLILHG IRU SROLWLFDO RU VRFLDO
    SHUVHFXWLRQ EXW EHFDXVH WKH\ OLYHG LQ D VWDWH RI OLIHWKUHDWHQLQJ SRYHUW\ WKDW
    ZDVFUHDWHGE\H[SORLWDWLYH63'&SROLFLHV
    
    7KHVWUHQJWKRIWKHFXUUHQWQRUPDWLYHUHJLPHIRUSURWHFWLQJLQWHUQDOO\GLVSODFHG
    SHUVRQV ,'3V  OLHV PLGZD\ EHWZHHQ WKDW IRU HFRQRPLF PLJUDQWV DQG WKDW IRU
    UHIXJHHV:KLOHWKH,'3QRUPVDVHQVKULQHGLQWKH*XLGLQJ3ULQFLSOHVRQ
    ,QWHUQDO'LVSODFHPHQWDUHEHWWHUGHILQHGDQGUHFRJQLVHGE\PRUHSROLF\PDNHUV
    WKDQ WKRVH IRU HFRQRPLF PLJUDQWV WKH\ DOVR KDYH QRW EHHQ FRGLILHG DV
    LQWHUQDWLRQDO ODZ DQG VR DUH ZHDNHU WKDQ WKH OHJDO SURWHFWLRQ UHJLPH IRU
    UHIXJHHV  %XW WKHVH ,'3 SURWHFWLRQ QRUPV OLNH WKRVH IRU UHIXJHHV SULRULWLVH
    SHRSOH SHUFHLYHG WR EH XQGHU LPPHGLDWH SK\VLFDO WKUHDWV ZKHWKHU GXH WR
    SHUVHFXWLRQ ZDUIDUH µVLWXDWLRQV RI JHQHUDOLVHG YLROHQFH¶ KXPDQ ULJKWV
    YLRODWLRQVRUQDWXUDORUKXPDQPDGHGLVDVWHUV$VPDQ\SHRSOHPLJUDWHZLWKLQ
    %XUPDIRUWKHVDPHUHDVRQVDVWKRVHZKROHDYHWKHFRXQWU\VXFKDGHILQLWLRQ
    DJDLQ IDLOV WR DFFXUDWHO\ DGGUHVV WKH FRPSOH[ IDFWRUV WKDW OHDG PDQ\ WR OHDYH
    WKHLUKRPHV

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    7KH IXQGDPHQWDO ODFN RI D OHJDO DQG QRUPDWLYH SURWHFWLRQ IUDPHZRUN IRU
    PLJUDQWV IOHHLQJ FRQGLWLRQV RI OLIHWKUHDWHQLQJ SRYHUW\ WKDW UHVXOW IURP DEXVH
    VKRZV KRZ FXUUHQWO\ RXW RI V\QF WKH LQWHUQDWLRQDO OHJDO FRPPXQLW\ LV ZLWK WKH
    UHDOLW\ IDFHG E\ SHRSOH OLYLQJ LQ UXUDO %XUPD  7KDW VR PDQ\ SHRSOH DUH OHIW
    ZLWKRXW D VLQJOH FRKHUHQW OHJDO DQG QRUPDWLYH SURWHFWLRQ IUDPHZRUN RQO\
    PDLQWDLQVWKHVWDWHRIYXOQHUDELOLW\WKDWWKHVHSHRSOHWULHGWRIOHHZKHQWKH\OHIW
    WKHLU KRPHV LQ %XUPD  7KLV HYLGHQFH VKRXOG OHDG SROLF\PDNHUV WR VHULRXVO\
    TXHVWLRQ WKHLU FXUUHQW FRQFHSWLRQV RI HFRQRPLF PLJUDWLRQ RXW RI DQG ZLWKLQ
    %XUPD DQG ZKDW LI DQ\WKLQJ VHSDUDWHV VXFK SHRSOH IURP WKRVH ZKR DUH
    FRPPRQO\FODVVLILHGDV,'3VRUUHIXJHHV
    
    5HFRPPHQGDWLRQV
    
    6\VWHPDWLF H[SORLWDWLRQ DQG RWKHU DEXVH ZLWKLQ %XUPD DUH URRW FDXVHV RI
    PLJUDWLRQRXWRIWKHFRXQWU\DQGQHHGWREHDGGUHVVHG+RZHYHUVRORQJDV
    WKLV DEXVH DQG PLJUDWLRQ FRQWLQXH DFWLRQ FDQ DQG VKRXOG EH WDNHQ WR DVVLVW
    YXOQHUDEOHSRSXODWLRQVIURP%XUPDQRZZRUNLQJDEURDG
    
    ([SDQGSURWHFWLRQ
    
    ,QWHUQDWLRQDO DJHQFLHV JRYHUQPHQWV DQG KXPDQLWDULDQ RUJDQLVDWLRQV FXUUHQWO\
    RU SRWHQWLDOO\  RSHUDWLQJ RQ %XUPD¶V ERUGHUV DQG SURYLGLQJ DVVLVWDQFH WR
    FRQYHQWLRQDOUHIXJHHSRSXODWLRQVVKRXOGDFNQRZOHGJHWKHOHJLWLPDWHSURWHFWLRQ
    FRQFHUQV RI WKRVH IURP %XUPD QRZ HQJDJHG LQ ZRUN RXWVLGH RI RIILFLDOO\
    UHFRJQLVHG UHIXJHH FDPSV  2QFH WKHVH ERGLHV KDYH UHFRJQLVHG WKDW WKH OLQH
    GUDZQ EHWZHHQ PLJUDQWV DQG UHIXJHHV IURP %XUPD LV XQVDWLVIDFWRU\ WKH\
    VKRXOG WKHQ HQGHDYRXU WR H[SDQG WKHLU FXUUHQW SURWHFWLRQPDQGDWHVEH\RQGD
    QDUURZUHIXJHHSRSXODWLRQLQRUGHUWRWUXO\UHIOHFWWKHURRWFDXVHVRIDEXVHWKDW
    PRWLYDWHVRPDQ\WROHDYHKRPHLQ%XUPDDQGVHHNRXWZRUNDEURDG
    
    $JHQFLHV DQG RUJDQLVDWLRQV HQJDJHG LQ SURWHFWLRQ ZRUN VKRXOG VWULYH WR
    XQGHUVWDQG WKH SDUWLFXODU KXPDQ ULJKWV FKDOOHQJHV DV GHILQHG E\ PLJUDQW
    ZRUNHUV WKHPVHOYHV DQG VXSSRUW WKH VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV ZKLFK
    WKHVH LQGLYLGXDOV DUH DOUHDG\ HPSOR\LQJ  $OVR KRVW JRYHUQPHQWV DQG WKH
    LQWHUQDWLRQDO FRPPXQLW\ VKRXOG LQFUHDVH ILQDQFLDO ORJLVWLFDO DQG SROLWLFDO
    VXSSRUW IRU ORFDO DQG LQWHUQDWLRQDO 1*2V HQJDJHG LQ SURWHFWLRQ ZRUN ZLWK
    PLJUDQWFRPPXQLWLHVIURP%XUPD:KHUHKRVWJRYHUQPHQWUHVWULFWLRQVDUHWKH
    SULPDU\ EDUULHUV WR H[SDQGLQJ OHJDO KXPDQLWDULDQ DQG RWKHU DVVLVWDQFH WR
    YXOQHUDEOHPLJUDQWVHQJDJHGLQSDLGODERXUDGYRFDF\ZLWKGRPHVWLFDXWKRULWLHV
    PD\EHQHFHVVDU\WRDPHQGUHVWULFWLYHSROLFLHV

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    (VWDEOLVKLQWHUQDWLRQDOIUDPHZRUNV
    
    2Q WKH LQWHUQDWLRQDO OHJDO DQG SROLWLFDO OHYHO SROLF\PDNHUV VKRXOG ZRUN WR
    HVWDEOLVK ODZV DQG QRUPV WKDW PRUH DFFXUDWHO\ WDNH LQWR FRQVLGHUDWLRQ WKH
    FDXVHV WKDW OHDG SHRSOH WR OHDYH WKHLU KRPHV LQ %XUPD DQG VLPLODU VLWXDWLRQV
    HOVHZKHUH  (IIRUWV PXVW EH PDGH WR FUHDWH D VHSDUDWH VWURQJ LQWHUQDWLRQDO
    UHJLPHWKDWFDQEHWWHUSURWHFWYXOQHUDEOHPLJUDQWVIURP%XUPDDQGHOVHZKHUH
    ZKR WDNH RQ HPSOR\PHQW DEURDG DQG ODFN FDPSEDVHG RU RWKHU RIILFLDOO\
    VDQFWLRQHGUHIXJHHSURWHFWLRQ2QHRSWLRQLVWRFUHDWHDQRUPDWLYHIUDPHZRUN
    IRUVXFKPLJUDQWVVLPLODUWRWKH*XLGLQJ3ULQFLSOHVRQ,QWHUQDO'LVSODFHPHQWWKDW
    ZRXOGUDWKHUWKDQFUHDWLQJDQHQWLUHO\QHZOHJDORUQRUPDWLYHUHJLPHLQVWHDG
    WDNH DGYDQWDJH RI WKRVH KXPDQ ULJKWVUHODWHG ODZV WKDW DUH DOUHDG\ ZLGHO\
    UHFRJQLVHGDQGFRGLILHGLQLQWHUQDWLRQDOODZ
    
    ™
    
    7KHUHLVDQLQHYLWDEO\ORQJILJKWWREHKDGLQRUGHUWRHVWDEOLVKDQHIIHFWLYHDQG
    DSSURSULDWH LQWHUQDWLRQDO OHJDO SURWHFWLRQ IUDPHZRUN IRU PLJUDQWV  +RZHYHU
    FRQFUHWH VWHSV PXVW DQG FDQ EH WDNHQ QRZ WR HIIHFWLYHO\ DGGUHVV WKH QHHGV
    DQGVXSSRUWWKHVHOILQLWLDWHGSURWHFWLRQVWUDWHJLHV RIWKHPLOOLRQVRI%XUPHVH
    PLJUDQWVZKRDUHFXUUHQWO\OLYLQJDZD\IURPWKHLUKRPHVLQ%XUPDDQGZKRODFN
    RIILFLDOO\UHFRJQLVHGUHIXJHHVWDWXV
    
    $ORQJ ZLWK WKH VSHFLILF UHFRPPHQGDWLRQV LQFOXGHG KHUH WKLV UHSRUW DLPV WR
    VWLPXODWHDVHULRXVGLVFXVVLRQRIWKHFDXVHVRIPLJUDWLRQIURP%XUPDWKHOLPLWV
    RI LQWHUQDWLRQDO SURWHFWLRQ PHFKDQLVPV IRU WKHVH PLJUDQWV DQG SRVVLEOH
    LQLWLDWLYHV WR PRUH HIIHFWLYHO\ DGGUHVV PLJUDQWV¶ SURWHFWLRQ QHHGV  :KLOH WKH
    ILQGLQJV SUHVHQWHG KHUH DUH VWUHQJWKHQHG E\ WKRXVDQGV RI VLPLODU LQWHUYLHZV
    FRQGXFWHGE\.+5*RYHUWKHSDVW\HDUVWKLVUHSRUWVKRXOGDOVRVHUYHDVD
    SURPSW DQG PRGHO IRU IXUWKHU UHVHDUFK E\ RWKHU RUJDQLVDWLRQV DQG DJHQFLHV
    HQJDJHGLQUHIXJHHDQGPLJUDQWSURWHFWLRQDQGDGYRFDF\

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    1RWHVRQWKHWH[W
    
    7KLVUHSRUWLVEDVHGSULPDULO\RQWZRVHWVRIGDWD WHVWLPRQLHVIURPYLOODJHUV
    OLYLQJLQWKHPRVWH[WHQVLYHO\PLOLWDU\FRQWUROOHGDUHDVRI.DUHQ6WDWH LQFOXGLQJ
    7KDWRQ'RRSOD\D1\DXQJOHELQDQG3D¶DQ'LVWULFWV GUDZQIURPLQWHUYLHZV
    FRQGXFWHG LQ 6¶*NDZ .DUHQ 3ZR .DUHQ DQG %XUPHVH ODQJXDJHV EHWZHHQ
    $XJXVWDQG'HFHPEHUDQG WHVWLPRQLHVIURPQDWLYH%XUPHVH
    LQGLYLGXDOV LQFOXGLQJ WKRVH RI %XUPDQ .DUHQ 0RQ DQG &KLQ HWKQLFLWLHV  ZKR
    DUH FXUUHQWO\ OLYLQJ LQ 7KDLODQG DV µHFRQRPLF PLJUDQWV¶ DQG ZHUH LQWHUYLHZHG
    EHWZHHQ -DQXDU\ DQG 0DUFK   7KH LQWHUYLHZV ZLWK PLJUDQWV ZHUH DOVR
    FRQGXFWHGLQ6¶*NDZ.DUHQ3ZR.DUHQDQG%XUPHVHODQJXDJHV
    
    0XFKRIWKHDQDO\VLVDQGEDFNJURXQGRIWKLVUHSRUWLVLQIRUPHGE\WKRXVDQGVRI
    LQWHUYLHZV FRQGXFWHG E\ .+5* ILHOG UHVHDUFKHUV VLQFH WKH RUJDQLVDWLRQ¶V
    IRXQGLQJ LQ   7KH PHWKRGRORJLFDO DSSURDFK LV RQH RI TXDOLWDWLYH RYHU
    TXDQWLWDWLYH UHVHDUFK LQ RUGHU WR DOORZ LQWHUYLHZHHV WR VSHDN IRU WKHPVHOYHV
    DERXW DEXVHV WKHLU HIIHFWV DQG WKH LPSOLFDWLRQV RQ WKHLU OLYHV DQG WR GHVFULEH
    WKH PDQQHU LQ ZKLFK WKH\ KDYH UHVSRQGHG WR HYHQWV  )XUWKHU VXSSRUWLYH
    LQIRUPDWLRQ KDV EHHQ GUDZQ ZKHUH DSSURSULDWH IURP DFDGHPLF DQG PHGLD
    DUWLFOHV DV ZHOO DV UHSRUWV IURP JRYHUQPHQW LQWHUJRYHUQPHQWDO DQG
    QRQJRYHUQPHQWDODJHQFLHV
    
    0DQ\ RI WKH SODFH QDPHV PHQWLRQHG LQ WKH UHSRUW DUH LQGLFDWHG RQ WKH
    DFFRPSDQ\LQJ PDSV  0RVW GLVWULFWV WRZQVKLSV YLOODJHV DQG ULYHUV LQ .DUHQ
    6WDWHKDYHERWKD.DUHQDQG%XUPHVHQDPH:HKDYHWULHGWREHFRQVLVWHQW
    WKURXJKRXW WKLV UHSRUW  :KLOH .DUHQ GLVWULFWV DUH LGHQWLILHG ZLWK %XUPHVH
    QDPHV WKHLU ERXQGDULHV IROORZ .DUHQ GHVLJQDWLRQV VKRZQ LQ WKH .DUHQ6WDWH
    PDSEHORZ DVXVHGE\ORFDOSHRSOHDQGWKH.DUHQ1DWLRQDO8QLRQ .18 EXW
    QRWWKH63'&8QGHU63'&GHVLJQDWLRQV DVVKRZQLQWKH%XUPDPDSEHORZ 
    VHFWLRQVRIZHVWHUQ7RXQJRRDQG1\DXQJOHELQ'LVWULFWVIDOOZLWKLQHDVWHUQ3HJX
    %DJR 'LYLVLRQZHVWHUQ7KDWRQDQG'RRSOD\D'LVWULFWVIRUPSDUWRI0RQ6WDWH
    DQG7HQDVVHULPFRPSULVHVDGLYLVLRQZKROO\VHSDUDWHIURP.DUHQ6WDWH.DUHQ
    DQG %XUPHVH QDPHV WUDQVOLWHUDWHG LQWR (QJOLVK IROORZ .+5* VWDQGDUGV DQG
    PD\GHYLDWHIURPWKRVHXVHGE\RWKHURUJDQLVDWLRQVDVQRFRQYHQWLRQKDVEHHQ
    XQLYHUVDOO\ DGRSWHG  7KLV UHSRUW XVHV 8. (QJOLVK VSHOOLQJ WKURXJKRXW H[FHSW
    ZKHUH GLUHFWO\ TXRWLQJ WH[WV ZULWWHQ LQ 86 (QJOLVK  +RZHYHU GDWHV DUH
    IRUPDWWHGIROORZLQJWKH$PHULFDQFRQYHQWLRQ
    
    .+5* ZRXOG OLNH WR WKDQN WKH <DXQJ &KL 2R :RUNHU $VVRFLDWLRQ WKH 'XNH
    8QLYHUVLW\ +DUW )HOORZVKLS 3URJUDP DQG VHYHUDO RWKHU DQRQ\PRXV LQGLYLGXDOV
    IRUWKHLUDVVLVWDQFH

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    7HUPVDQGDEEUHYLDWLRQV
    
    $)3)/$QWL)DVFLVW3HRSOH¶V)UHHGRP/HDJXH
    %633%XUPD6RFLDOLVW3URJUDPPH3DUW\
    '.%$  'HPRFUDWLF.DUHQ%XGGKLVW$UP\DOOLHGZLWKWKH63'&
    ,'3  ,QWHUQDOO\'LVSODFHG3HUVRQ
    .1/$  .DUHQ1DWLRQDO/LEHUDWLRQ$UP\
    .18  .DUHQ1DWLRQDO8QLRQ
    /,%  /LJKW,QIDQWU\%DWWDOLRQ
    /,'  /LJKW,QIDQWU\'LYLVLRQ
    0$'%  0\DQPDU$JULFXOWXUDO'HYHORSPHQW%DQN
    1/'  1DWLRQDO/HDJXHIRU'HPRFUDF\
    63'&  6WDWH3HDFHDQG'HYHORSPHQW&RXQFLO
    6/25& 6WDWH/DZDQG2UGHU5HVWRUDWLRQ&RXQFLO UHQDPHG63'& 
    81  8QLWHG1DWLRQV
    81(6&2 8QLWHG1DWLRQV(GXFDWLRQDO6FLHQWLILFDQG&XOWXUDO2UJDQL]DWLRQ
    81+&5 7KH2IILFHRIWKH81+LJK&RPPLVVLRQHUIRU5HIXJHHV
    
    N\DW %XUPHVHFXUUHQF\86HTXDOV DWWLPHRIZULWLQJ N\DWDW
    RIILFLDOUDWHDSSUR[N\DWDWPDUNHWUDWH
    YLVV  8QLWRIZHLJKWPHDVXUHRQHYLVVHTXDOVNJOE

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    %DFNJURXQG
    
    $XWKRULWDULDQLVPLQ%XUPD
    
    2QWKHHYHRI%XUPD¶VLQGHSHQGHQFHIURP%ULWLVKUXOHLQPDQ\SROLWLFDOO\
    FRQVFLRXV OHDGHUV RI HWKQLF FRPPXQLWLHV IHOW WKDW WKHLU JRDOV RI HWKQLF VHOI
    GHWHUPLQDWLRQ ZRXOG EH WKUHDWHQHG E\ WKH UXOH RI D FHQWUDOLVHG DQG HWKQLF
    %XUPDQGRPLQDWHG JRYHUQPHQW  ,QGLIIHUHQW WR WKHVH FRQFHUQV WKH SRVW
    LQGHSHQGHQFH JRYHUQPHQW XQGHU 8 1X¶V $QWL)DVFLVW 3HRSOH¶V )UHHGRP
    /HDJXH $)3)/  EHJDQ D QDWLRQEXLOGLQJ SURMHFW ODUJHO\ VKDSHG E\ WKH HWKQLF
    %XUPDQ H[SHULHQFH RI WKH LQGHSHQGHQFH VWUXJJOH DQG DLPHG DW H[WHQGLQJ
    FHQWUDOLVHG 6WDWH DXWKRULW\ RYHU DOO DUHDV RI WKH FRXQWU\  7KH IRUP RI QDWLRQ
    EXLOGLQJ SXUVXHG E\ WKH SRVWLQGHSHQGHQFH JRYHUQPHQW ZDV UHFHLYHG ZLWK
    KRVWLOLW\E\QXPHURXVHWKQLFOHDGHUV
    
    81XDQGWKH$)3)/ODFNHGZLGHVSUHDGOHJLWLPDF\RXWVLGHRIWKHLURZQHWKQLF
    %XUPDQ PDMRULW\  7KH JRYHUQPHQW¶V QDWLRQEXLOGLQJ SURMHFW ZDV WKXV
    FRQWHQWLRXV IURP WKH VWDUW DQG GLYHUVH HWKQLF JURXSV UHVSRQGHG E\ WDNLQJ XS
    DUPV DJDLQVW WKH 8 1X DGPLQLVWUDWLRQ  ,Q DGGLWLRQ WR PXOWLSOH HWKQLF
    LQVXUJHQFLHV %XUPD¶V SRVWLQGHSHQGHQFH JRYHUQPHQW ZDV DOVR EHVHW E\ D
    ODUJHVFDOHFRPPXQLVWLQVXUUHFWLRQDQGZDVDWRQHSRLQWWRRZHDNWRH[HUFLVH
    LWV DXWKRULW\ EH\RQG WKH FDSLWDO %\  WKH %XUPD $UP\ 7DWPDGDZ *\L LQ
    %XUPHVH  XQGHU WKH FRPPDQG RI *HQHUDO 1H :LQ KDG GHSRVHG 8 1X DQG
    LQVWLWXWHG WKH FXUUHQW PLOLWDU\ DXWKRULWDULDQ DSSURDFK WR JRYHUQLQJ %XUPD  1H
    :LQVRXJKWWRHVWDEOLVKFHQWUDOLVHG6WDWHFRQWUROHYHQPRUHDJJUHVVLYHO\WKDQ
    WKH $)3)/ QDPLQJ KLV SROLWLFDO SURJUDP WKH µ%XUPHVH :D\ WR 6RFLDOLVP¶
    8QGHU D RQHSDUW\ V\VWHP WKH PLOLWDU\FRQWUROOHG %XUPD 6RFLDOLVW 3URJUDPPH
    3DUW\ %633  WRRN RYHU DOO DVSHFWV RI WKH JRYHUQPHQW¶V H[HFXWLYH OHJLVODWLYH
    DQG MXGLFLDU\ UHVSRQVLELOLWLHV DV ZHOO DV WKH GD\WRGD\ DGPLQLVWUDWLYH ZRUN RI
    WKHFLYLOLDQEXUHDXFUDF\
    
    ,Q RUGHU WR VXSSRUW WKH H[SDQGLQJ PLOLWDU\ JRYHUQPHQW WKH %633 ZHQW DERXW
    FUHDWLQJ DQ H[SORLWDWLYH V\VWHP LQ ZKLFK FLYLOLDQV ZHUH IRUFHG WR VHUYH DQG
    PDLQWDLQDEVROXWHPLOLWDU\DXWKRULW\%\QDWLRQDOLVLQJDOODJULFXOWXUHDQGLQGXVWU\
    DQGHVWDEOLVKLQJDPRQRSRO\RQWUDGHWKHPLOLWDU\HIIHFWLYHO\DSSURSULDWHGWKH
    FRXQWU\¶VHQWLUHQDWXUDOZHDOWK7KH%633H[SORLWHGWKHFLYLOLDQSRSXODWLRQDQG
    LQVWLWXWHG GUDFRQLDQ UHVWULFWLRQV RQ WUDGH WUDYHO DQG FRPPXQLFDWLRQ
    (YHQWXDOO\ WKH %XUPHVH :D\ WR 6RFLDOLVP SURYHG D GLVPDO IDLOXUH ERWK
    SROLWLFDOO\ DQG HFRQRPLFDOO\ DQG OHG WR WKH FROODSVH RI %XUPD¶V QDWLRQDO
    HFRQRP\  %XUPHVH FLWL]HQV¶ IUXVWUDWLRQV ZLWK WKH PLOLWDU\¶V HFRQRPLF IDLOXUHV
    DQGKHDY\UHVWULFWLRQVZHUHPDMRUIDFWRUVXQGHUO\LQJDPDVVLYHSRSXODUXSULVLQJ
    LQ7KHJRYHUQPHQWUHVSRQGHGWRWKHSURWHVWVZLWKDEUXWDOFUDFNGRZQ
    
    ,Q UHVSRQVH WR WKH XSULVLQJ WKH 6WDWH /DZ DQG 2UGHU 5HVWRUDWLRQ &RXQFLO
    6/25& IRUPHGLQLQRUGHUWRHQVXUHFRQWLQXHGPLOLWDU\UXOHDQGSUHYHQW

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    D ORVV RI 6WDWH FRQWURO WR D FLYLOLDQ DGPLQLVWUDWLRQ  7KH 6/25& GHIHQGHG
    FRQWLQXHG PLOLWDU\ UXOH RQ JURXQGV RI HFRQRPLF GHYHORSPHQW DQG QDWLRQDO
    VHFXULW\ ZKLOH LW DOVR PDLQWDLQHG DQG LQWHQVLILHG PLOLWDU\ FRQWURO RYHU %XUPD
    7KH6/25&DQG63'& DV%XUPD¶VPLOLWDU\MXQWDUHQDPHGLWVHOILQ KDYH
    DWWHPSWHG WR SRUWUD\ ERWK LQWHUQDOO\ DQG DEURDG DQ LPDJH RI DEVROXWH XQLW\
    ZLWKLQ WKH FRXQWU\ DQG WRWDO GRPHVWLF VXSSRUW IRU DEVROXWH PLOLWDU\ UXOH  $Q\
    H[SUHVVLRQ RI SRZHU ZKLFK GRHV QRW FOHDUO\ EHQHILW WKH PLOLWDU\ UHJLPH LV
    GHHPHG D WKUHDW WR WKH 6WDWH  7KH UHJLPH KDV WKXV UHVSRQGHG ZLWK PLOLWDU\
    IRUFHLQRUGHUWRFRXQWHUFDOOVIRUDXWRQRP\E\HWKQLFRSSRVLWLRQJURXSV
    
    7KH)RXU&XWV3ROLF\DQGµ/LYLQJRIIWKHODQG¶
    
    6LQFH WKH ODWH V WKH %XUPD $UP\ KDV XVHG D FRXQWHULQVXUJHQF\ SROLF\
    WHUPHGWKHµIRXUFXWV¶ZKLFKDLPVWRFXWRIILQVXUJHQWV¶DFFHVVWRIRRGILQDQFHV
    LQWHOOLJHQFHDQGUHFUXLWV$SSO\LQJWKLVVWUDWHJ\PLOLWDU\RSHUDWLRQVKDYHODUJHO\
    IXQFWLRQHGWRH[WHQGWKH63'&¶VFRQWURORYHUWUDGLWLRQDOO\QRQ63'&FRQWUROOHG
    DUHDV2YHUWKHGHFDGHVRIFRQIOLFWWKHDUHDXQGHU63'&FRQWUROKDVVWHDGLO\
    JURZQDVDUPHGRSSRVLWLRQJURXSVDFURVVWKHFRXQWU\KDYHEHFRPHZHDNHU
    
    7KH GHFDGHVORQJ DUPHG FRQIOLFW LQ %XUPD FRQWLQXHV WR WKLV GD\ DV GR WKH
    XQGHUO\LQJWHQVLRQVEHWZHHQFHQWUDOLVHGDQGORFDOFRQWURO'HVSLWHFODLPLQJWR
    KDYH DEDQGRQHG WKH IDLOHG VRFLDOLVW SROLFLHV RI WKH 1H :LQ JRYHUQPHQW WKH
    SRVWPLOLWDU\UHJLPHFRQWLQXHVWRRSHUDWHDFHQWUDOO\FRQWUROOHGHFRQRPLF
    V\VWHPZLWKKHDY\UHVWULFWLRQVRQLQGHSHQGHQWRUJDQLVDWLRQ
    
    ™
    
    5DWKHU WKDQ ORRNLQJ DW µFRQIOLFW DUHDV¶ ZKHUH 63'& FRQWURO LV WHQXRXV WKLV
    UHSRUWVSHFLILFDOO\IRFXVHVRQWKRVHSDUWVRIUXUDO%XUPDLQZKLFKWKH63'&KDV
    ILUPO\ HVWDEOLVKHG LWV DXWKRULW\ DQG LQVWLWXWHG ZLGHVSUHDG H[SORLWDWLYH SROLFLHV
    WKDWKDYHFUHDWHGDVLWXDWLRQRIOLIHWKUHDWHQLQJSRYHUW\IRUYLOODJHUV7KXVLWLV
    XVHIXOWREULHIO\H[SODLQZK\WKH63'&KDVFKRVHQWRH[SORLWWKHSRSXODWLRQDQG
    QDWXUDOUHVRXUFHVDFURVVVXFKODUJHVZDWKVRI%XUPD
    
    )URPWRWKHPLGVWKHPLOLWDU\UDSLGO\H[SDQGHGLWVVL]HIURP
    WRDERXWLQGLYLGXDOV7KHORJLVWLFDOUHTXLUHPHQWVRIVXSSRUWLQJVXFKD
    ODUJHLQVWLWXWLRQKDYHLQFUHDVHGDFFRUGLQJO\,QGHHGWKHRQJRLQJRSHUDWLRQVRI
    %XUPD¶V DUPHG IRUFHV KDYH EHFRPH GLUHFWO\ GHSHQGHQW RQ WKH FRXQWU\¶V
    DJULFXOWXUHLQGXVWU\DQGWUDGH
    
    *LYHQWKHSRSXODUUHVLVWDQFHWRPLOLWDU\UXOHWKHMXQWDKDVEHFRPHLQFUHDVLQJO\
    DZDUH WKDW LW QHHGV WR VKRUH XS LWV PRVW FUXFLDO VXSSRUW EDVH DUPHG IRUFHV
    SHUVRQQHODQGWKHLUIDPLOLHV$VDFRQVHTXHQFHWKHMXQWDKDVVRXJKWWRHQVXUH
    
    
    0&DOODKDQ3ROLWLFDO$XWKRULW\LQ%XUPD¶V(WKQLF0LQRULW\6WDWHV'HYROXWLRQ2FFXSDWLRQ
    DQG&RH[LVWHQFH(DVW:HVW&HQWHUS

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    EDVLF VXEVLVWHQFH UDWLRQV IRU ORZOHYHO DUPHG IRUFHV SHUVRQQHO DQG WKHLU
    IDPLOLHV DQG SURYLGH EHWWHU DQG PRUH FRPSUHKHQVLYH VHUYLFHV IRU LWV KLJKHU
    OHYHORIILFLDOV
    
    7KH FRQFHQWUDWLRQ RI ZHDOWK DQG UHVRXUFHV DW WKH KLJKHVW OHYHOV RI PLOLWDU\
    FRQWURO DQG WKH VLPXOWDQHRXV H[SDQVLRQ RI WKH VL]H DQG RSHUDWLRQV RI ORFDO
    PLOLWDU\ XQLWV DFURVV WKH FRXQWU\ KDV OHG WR D FRQWUDGLFWRU\ PDQQHU RI
    GLVWULEXWLQJ UHVRXUFHV  :KLOH WKH UHJLPH KDV UHFHQWO\ EHJXQ HDUQLQJ PDVVLYH
    UHYHQXH RI URXJKO\ 86  PLOOLRQ SHU PRQWK WKURXJK WKH H[SRUW RI QDWXUDO
    JDV LW DSSHDUV WKDW PRVW RI WKLV ZHDOWK LV EHLQJ KRDUGHG LQ XQGLVFORVHG
    ORFDWLRQV  $V D UHVXOW LQ RUGHU WR VXSSRUW ERWK WKH LQFUHDVLQJO\ SULYLOHJHG
    OLIHVW\OHV RI XSSHUOHYHO PLOLWDU\ RIILFHUV DV ZHOO DV WKH ODUJHVFDOH H[SDQVLRQ
    DQG RSHUDWLRQV RI RQWKHJURXQG PLOLWDU\ XQLWV ORFDOOHYHO DUPHG IRUFHV KDYH
    EHFRPHGHSHQGHQWRQWKHUHJXODUGLUHFWH[SORLWDWLRQRIWKHFLYLOLDQSRSXODWLRQLQ
    .DUHQ6WDWHDQGRWKHUHVSHFLDOO\UXUDOSDUWVRI%XUPD
    
    :KHUHDVFRQWURORYHUDJULFXOWXUHLQGXVWU\DQGWUDGHVXSSRUWWKHODUJHUV\VWHP
    RIPLOLWDU\UXOHORFDODUP\XQLWVLQUHJLRQVVXFKDV.DUHQ6WDWHDUHWKHPVHOYHV
    GHSHQGHQW RQ WKH URXWLQH H[SORLWDWLRQ RI WKH ORFDO FLYLOLDQ SRSXODWLRQ  7KLV
    GHSHQGHQFHRQWKHORFDOSRSXODWLRQEHFDPHH[SOLFLWLQDRUGHUE\WKH:DU
    2IILFHWRWKHFRXQWU\¶V5HJLRQDO&RPPDQGHUV³WRPHHWWKHLUEDVLFORJLVWLFDO
    QHHGV ORFDOO\ UDWKHU WKDQ UHO\ RQ WKH FHQWUDO VXSSO\ V\VWHP´  7KLV SROLF\
    W\SLFDOO\ WHUPHG ³OLYLQJ RII WKH ODQG´ KDV SODFHG WKH EXUGHQ RI ILQDQFLQJ
    PLOLWDULVDWLRQ DQG WKH PLOLWDU\ HOLWH RQ WKH ODUJHO\ UXUDO SRSXODWLRQ RI %XUPD
    WKURXJK DQ H[WHQVLYH DUUD\ RI H[SORLWDWLYH GHPDQGV HQIRUFHG RQ YLOODJH
    FRPPXQLWLHV  $V D FRQVHTXHQFH DV WKLV UHSRUW ZLOO VKRZ ODUJH QXPEHUV RI
    SHRSOH IURP %XUPD¶V UXUDO DUHDV ZKR FRPSULVH DERXW  RI WKH FRXQWU\¶V
    WRWDO SRSXODWLRQ  KDYH KDG WR OHDYH WKHLU KRPHV LQ VHDUFK RI HPSOR\PHQW
    RSSRUWXQLWLHVHOVHZKHUH

    
    
    6HH0&DOODKDQ³2IN\D\]XDQGN\HWVXWKHPLOLWDU\LQ´LQ0RQLTXH6NLGPRUHDQG
    7UHYRU :LOVRQ HGV  0\DQPDU ± 7KH 6WDWH &RPPXQLW\ DQG WKH (QYLURQPHQW $VLD 3DFLILF
    3UHVVS
    
     6HH 6 7XUQHOO ³$ 6KDWWHUHG 5LFH %RZO´ 7KH ,UUDZDGG\ 0D\ WK  $FFHVVHG DW
    KWWSZZZLUUDZDGG\RUJDUWLFOHSKS"DUWBLG RQ$SULOWK
    
    6HH$6HOWK%XUPD¶V$UPHG)RUFHV3RZHU:LWKRXW*ORU\(DVWEULGJHSDQG0
    &DOODKDQ 3ROLWLFDO $XWKRULW\ LQ %XUPD¶V (WKQLF 0LQRULW\ 6WDWHV 'HYROXWLRQ 2FFXSDWLRQ DQG
    &RH[LVWHQFH(DVW:HVW&HQWHUS

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    'DWD6HW$EXVHVLQ63'&FRQWUROOHGDUHDVRI
    .DUHQ6WDWH
    
    7KLV FKDSWHU SUHVHQWV WKH ILQGLQJV RI WKH  LQWHUYLHZV ZKLFK .+5*
    FRQGXFWHGLQVLGH63'&FRQWUROOHGDUHDVRI.DUHQ6WDWHEHWZHHQ$XJXVW
    DQG'HFHPEHU
    
    %HIRUHJRLQJLQWRGHWDLODERXWWKHILQGLQJVRIWKHVHLQWHUYLHZVLWLVLPSRUWDQWWR
    ILUVWXQGHUVWDQGWKHQDWXUHRIWKHFRQIOLFWLQ(DVWHUQ%XUPD7KHH[LVWLQJDUPHG
    VWUXJJOH LQ .DUHQ 6WDWH LV QRW DQ LQWHQVLYH EDWWOH EHWZHHQ HTXDOO\ VWURQJ
    RSSRQHQWV,QVWHDGWKH.DUHQ1DWLRQDO/LEHUDWLRQ$UP\ .1/$ ZLWKMXVWD
    IHZ WKRXVDQG VROGLHUV LV IDU RXWQXPEHUHG E\ 63'& IRUFHV DQG ODFNV WKH
    ZHDSRQV DQG UHVRXUFHV RI LWV DGYHUVDU\  )XUWKHUPRUH XQOLNH LQ PDQ\ RWKHU
    FRQIOLFWVDURXQGWKHZRUOGWKH63'&KDVSUHGRPLQDQWO\WDUJHWHGFLYLOLDQVDQG
    QRW LWV DUPHG RSSRQHQWV  &RPPXQLWLHV LQ GLIILFXOWWRFRQWURO IRUHVW DQG
    PRXQWDLQDUHDVVXFKDVPXFKRIQRUWKHUQ.DUHQ6WDWHDUHW\SLFDOO\IRUFHGWR
    UHORFDWH WR VLWHV QHDU DUP\ EDVHV RU 63'&FRQWUROOHG YLOODJHV WR HQVXUH WKDW
    WKH\ UHPDLQ ILUPO\ XQGHU PLOLWDU\ FRQWURO  )RUFHG UHORFDWLRQ FUHDWHV
    FRQVROLGDWHG SRROV RI FLYLOLDQV ZKR DUH WKHQ VXEMHFW WR V\VWHPDWLF IRUPV RI
    H[SORLWDWLRQ E\ PLOLWDU\ IRUFHV DQG 6WDWH RIILFLDOV IRU IRRG PRQH\ ODERXU DQG
    RWKHUVXSSOLHV
    
    $ZDUHRIWKHSHUYDVLYHH[SORLWDWLRQDQGUHVWULFWLRQVLQ63'&FRQWUROOHGDUHDV
    PDQ\YLOODJHUVDYRLGUHORFDWLRQE\IOHHLQJDQGKLGLQJLQWKHIRUHVW,QUHVSRQVH
    WKH%XUPD$UP\GHHPVWKRVHZKRIOHHWRWKHVHQRQ63'&FRQWUROOHGUHJLRQV
    DVHQHPLHVRIWKH6WDWHDQGOHJLWLPDWHPLOLWDU\WDUJHWV,QVHDUFKDQGGHVWUR\
    PLVVLRQVWKH%XUPD$UP\WDUJHWVWKHVHGLVSODFHGFRPPXQLWLHVEXUQLQJGRZQ
    WKHLU IRRG VXSSOLHV IDUP ILHOGV DQG KLGLQJ VLWHV DQG VKRRWLQJ RQ VLJKW DQ\RQH
    ZKRLVVSRWWHG
    
    +RZHYHULWLVQRWRQVXFKDUHDVWKDWWKLVUHSRUWLVSULPDULO\IRFXVHG5DWKHULQ
    DQHIIRUWWRGHWHUPLQHZKDWIRUPVRIDEXVHDUHFRPPRQXQGHUµQRUPDO¶63'&
    JRYHUQDQFHWKLVUHSRUWSULPDULO\IRFXVHVRQWKRVHDUHDVRI.DUHQ6WDWHZKHUH
    PLOLWDU\ FRQWURO RYHU WKH FLYLOLDQ SRSXODWLRQ LV PRVW H[WHQVLYH 7KDWRQ 3D¶DQ
    'RRSOD\DDQG1\DXQJOHELQGLVWULFWV
    
    $V WKH UHVXOWV RI WKH LQWHUYLHZV LQGLFDWH WKH YDVW PDMRULW\ RI DEXVHV ZKLFK
    YLOODJHUV H[SHULHQFH LQ 63'&FRQWUROOHG DUHDV RI UXUDO .DUHQ 6WDWH DUH
    H[SORLWDWLYH LQ FKDUDFWHU DQG UHSHDWHGO\ SHUSHWUDWHG  7KH DEXVHV FLWHG
    LQFOXGHGIRUFHGODERXUH[WRUWLRQDQGDGKRFGHPDQGVORRWLQJDQGPRYHPHQW
    UHVWULFWLRQV  7R D OHVVHU H[WHQW LQWHUYLHZHHV DOVR FLWHG DEXVHV FRPPRQO\
    DVVRFLDWHGZLWKSHUVHFXWLRQDQGDUPHGFRQIOLFW LQFOXGLQJVFRUFKHGHDUWKWDFWLFV
    OLNH DWWDFNV RQ YLOODJHV IDUP ILHOGV IRRG VWRUHV DQG OLYHVWRFN DV ZHOO DV WKH
    
    
    7KHDUPHGZLQJRIWKH.DUHQ1DWLRQDO8QLRQ .18 

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    GHSOR\PHQWRIODQGPLQHVLQFLYLOLDQDUHDV 7KHFRPSDUDWLYHSUHYDOHQFHRIWKH
    DEXVHV FLWHG E\ LQWHUYLHZHHV LV SUHVHQWHG LQ WKH FKDUW EHORZ  7KRVH DEXVHV
    FRPPRQO\DVVRFLDWHGZLWKDUPHGFRQIOLFWDQGSHUVHFXWLRQDUHJURXSHGRQWKH
    OHIW  7KRVH DEXVHV PRUH FOHDUO\ H[SORLWDWLYH LQ FKDUDFWHU DUH JURXSHG RQ WKH
    ULJKW
    
    &KDUW$EXVHVFLWHGLQ63'&FRQWUROOHGDUHDVRI.DUHQ6WDWH

    
    )RUFHGODERXU
    
    7KH\ >WKH YLOODJHUV@ XVXDOO\ ZRUNHG RQ IDUPV DQG SODQWDWLRQ JDUGHQV
    :H GLGQ¶W KDYH D JRRG RSSRUWXQLW\ WR ZRUN RQ RXU SODQWDWLRQV 7KH
    63'&PLOLWDU\FDPSZDVEDVHGEHVLGHRXUYLOODJH6RZHDOZD\VKDGWR
    GRORKDKSD\>IRUFHGODERXU@IRUWKHP:HGLGQ¶WKDYHPXFKWLPHWRGR
    RXU ZRUN  1RZ ZH VWLOO KDYH WR GR WKHLU ZRUN VXFK DV FXWWLQJ EDPERR
    SROHVDQGWKHQVHQGLQJWKHPWRWKHLUFDPS/DVW\HDUWKH\RUGHUHGXV
    WRIHQFHRXUYLOODJH7KH\DOZD\VFDPHWRWKHYLOODJHDQGRUGHUHGXVWR
    SURYLGHWKHPIRRGVXFKDVSLJVJRDWVFKLFNHQVDQGYHJHWDEOHV7KH\
    QHYHUSDLGXV:HGDUHGQRWWRVD\DQ\WKLQJWRWKHPHYHQWKRXJKWKH\
    WRRNRXUWKLQJVZLWKRXWRXUSHUPLVVLRQ
    6DZ% PDOH 7KYLOODJH1\DXQJOHELQ'LVWULFW $SULO 
    
    )RUFHG ODERXU ZDV WKH VLQJOH PRVW FRPPRQO\ FLWHG DEXVH DPRQJVW YLOODJHUV
    OLYLQJ LQ 63'&FRQWUROOHG DUHDV LQ .DUHQ 6WDWH  2XW RI  LQWHUYLHZHHV 

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    DERXW   FLWHG FDVHV RI IRUFHG ODERXU LQ WKHLU FRPPXQLWLHV  ,QWHUYLHZHHV
    UHSRUWHGIRUFHGODERXUGHPDQGVE\ERWK63'&DQG'.%$SHUVRQQHO
    
    &XUUHQWO\IRUFHGODERXUWDNHVPDQ\IRUPVLQFOXGLQJEXWQRWOLPLWHGWRSRUWHULQJ
    PLOLWDU\ VXSSOLHV URDG FRQVWUXFWLRQ DQG WKH FOHDULQJ RI RYHUJURZWK IURP WKH
    VLGHVRIYHKLFOHURDGVµJXLGLQJ¶DUP\SDWUROVVHQWU\GXW\VHWWKD PHVVHQJHU
    GXW\ IDEULFDWLRQDQGGHOLYHU\RIEXLOGLQJPDWHULDOVIRUFHGFRQVFULSWLRQLQWRWKH
    DUP\ SDUWLFLSDWLRQ LQ FHUHPRQLHV DQG UDOOLHV FRQVWUXFWLRQ RI IHQFHV DUP\
    FDPSV FOLQLFV VFKRROV SDJRGDV DQG OLEUDULHV DQG SDUWLFLSDWLRQ LQ SDUDVWDWDO
    RUJDQLVDWLRQV  ,Q DOPRVW DOO FDVHV RI IRUFHG ODERXU QR FRPSHQVDWLRQ RI DQ\
    NLQGLVSURYLGHG
    
    7KHPLOLWDU\SULPDULO\GHSHQGVRQWKHH[SORLWDWLRQRIFLYLOLDQVXQGHUWKHLUFRQWURO
    WRVXSSRUWRQJRLQJPLOLWDU\RSHUDWLRQVLQ.DUHQ6WDWHDQGVRIRUFHGODERXUKDV
    EHFRPH D ZLGHVSUHDG DQG V\VWHPDWLF DEXVH  ,Q VRPH FDVHV IRUFHG ODERXU
    FUHDWHV D GLUHFW WKUHDW WR OLIH  )RU H[DPSOH YLOODJHUV VHUYLQJ DV SRUWHUV DUH
    RIWHQ IRUFHG WR ZDON DKHDG RI PLOLWDU\SDWUROVLQRUGHUWREORFNJXQILUHIURPD
    SRWHQWLDO DPEXVK RU WULJJHU ODQGPLQHV WKDW PD\ OLH RQ WKHLU SDWK  0RUH
    JHQHUDOO\ UHJXODU GHPDQGV IRU IRUFHG ODERXU URE YLOODJHUV RI YDOXDEOH WLPH
    QHHGHG WR SHUIRUP WKHLU RZQ ZRUN  7KLV ORVV RI SHUVRQDO ZRUN WLPH UHVXOWVLQ
    SRRUKDUYHVWVORVWZDJHVDQGLQFUHDVHGSRYHUW\$Q\YLOODJHUZKRLVXQDEOHRU
    XQZLOOLQJ WR SDUWLFLSDWH LQ IRUFHG ODERXU PXVW HLWKHU SD\ D ILQH RU KLUH DQRWKHU
    YLOODJHU DV UHTXLUHG E\ 63'&'.%$ DXWKRULWLHV WR ZRUN LQ WKHLU VWHDG  7R
    DYRLGIRUFHGODERXUGHPDQGVDQGSURWHFWWKHPVHOYHVIURPRWKHUKXPDQULJKWV
    DEXVHVPDQ\YLOODJHUVGHFLGHWRWUDYHOWRRWKHUSODFHVLQ%XUPDRUWR7KDLODQG
    
    7KHUH ZHUH  KRXVHKROGV DQG RYHU  SHRSOH OLYHG LQ WKH YLOODJH
    7KH YLOODJHUV KHUH ZHUH ZRUNLQJ RQ KLOO ILHOGV DQG IDUPV EXW WKH\ GLGQ¶W
    JHW HQRXJK IRRG WR HDW EHFDXVH WKH\ GLGQ¶W KDYH WLPH WR WDNH FDUH RI
    WKHLUSODQWDWLRQV7KH\KDGWRGRORKDKSD\>IRUFHGODERXU@DQGVHUYHDV
    VHW WKD >PHVVHQJHUV@ IRU WKH 63'& DQG '.%$  6RPH SHRSOH ZHQW WR
    0DH/DUHIXJHHFDPS>LQ7KDLODQG@5HFHQWO\RYHUKRXVHKROGVOHIW
    WKHYLOODJHDQGZHQWWR0DH/DUHIXJHHFDPS3HRSOHZKRGLGQ¶WJRWR
    UHIXJHH FDPSV ORRN IRU ZRUN VXFK DV GD\ ODERXU MREV LQ WKH YLOODJH
    7KH\KDGWRSODQWVPDOOSDGG\SODQWV:KHQWKH\UHFHLYHGPRQH\WKH\
    ERXJKWWKHLUIRRG7KH\JRWN\DW>86@RUN\DW>86@
    SHUGD\DQGWKH\DOVRKDGDQRWKHUMREVXFKDVFXWWLQJVXJDUFDQHLQWKH
    VXPPHUVHDVRQ$TXDUWRIULFHZDVN\DW>86@DQGDTXDUWRI
    SDGG\ZDVN\DW>86@2QHYLVV>NJOE@RISRUNFRVW
    N\DW>86@DQGN\DW>86@IRUDYLVVRIFKLFNHQ
    8/ PDOH *NYLOODJH7KDWRQ'LVWULFW 1RY 

    
    
    /RFDO63'&SHUVRQQHORIWHQUHIHUWRXQFRPSHQVDWHGIRUFHGODERXUDVORKDKSD\D%XUPHVH
    WHUPWUDGLWLRQDOO\UHIHUULQJWRYROXQWDU\ZRUNRQFRPPXQLW\SURMHFWVOLNHWHPSOHFRQVWUXFWLRQ
    EXW QRW RQ PLOLWDU\ RU 6WDWH SURMHFWV  $V D UHVXOW RI WKLV UHFHQW OLQJXLVWLF PDQLSXODWLRQ ORFDO
    SHRSOHLQ.DUHQ6WDWHQRZXVHWKHWHUPORKDKSD\LQUHIHUHQFHWRPRVWIRUPVRIIRUFHGODERXU

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ([WRUWLRQDQGDGKRFGHPDQGV
    
    ³:KHQ , OLYHG LQ RXU YLOODJH WKHUH ZHUH D ORW RI GHPDQGV DQG WD[HV
    SODFHGXSRQXV,KDYHWZR\RXQJFKLOGUHQDQG,KDYHWRORRNRXWIRUP\
    IDPLO\¶VOLYHOLKRRG,GLGQ¶WKDYHWKHPRQH\WRSD\WD[HVRUSD\VROGLHUV
    DQG LI , ZHQW VRPHZKHUH WR ILQG ZRUN ZH KDG WR SD\ PRQH\DORQJWKH
    ZD\>WRFOHDUWKHFKHFNSRLQWV@,FRXOGQ¶WKDQGOHWKLVNLQGRIRSSUHVVLRQ
    DQGVR,FDPHWROLYHLQ/YLOODJH>DQ,'3KLGLQJVLWHLQ.DUHQ6WDWH@´
    6DZ PDOH /YLOODJH3D¶DQ'LVWULFW -XO\ 
    
    ,Q DGGLWLRQ WR ZLGHVSUHDG IRUFHG ODERXU H[WRUWLRQ LV DQRWKHU FRPPRQ IRUP RI
    DEXVH LQ 63'& RU '.%$FRQWUROOHG DUHDV LQ .DUHQ 6WDWH  $PRQJVW WKRVH
    LQWHUYLHZHG LQ .DUHQ 6WDWH  VDLGWKDW WKH\ KDG SHUVRQDOO\ H[SHULHQFHG RU
    NQHZRWKHUVZKRKDGH[SHULHQFHGWKLVDEXVH5HVLGHQWVRIUXUDO.DUHQ6WDWH
    KDYHWRFRPSO\ZLWKGHPDQGVRQDUHJXODUEDVLVDVVFKHGXOHGE\ORFDOPLOLWDU\
    DXWKRULWLHV DQG RQ DQ DG KRF EDVLV ZKHQHYHU VROGLHUV DUULYH DW WKHLU YLOODJH
    'HPDQGV XVXDOO\ LQFOXGH SURYLGLQJ EXLOGLQJ PDWHULDOV VXFK DV EDPERR DQG
    WKDWFK IRRG VXFK DV ULFH VDOW FKLOOL DQG PHDW PRQH\ IRU IHVWLYDOV REOLJDWRU\
    GRQDWLRQV WR PRQDVWHULHV RU SDJRGDV DQG FDVK SD\PHQWV LQ SODFH RI IRUFHG
    ODERXU
    
    1RW RQO\ DUH WKHVH DUELWUDU\ GHPDQGV D EODWDQW DEXVH RI SRZHU EXW LW LV DOVR
    FOHDU WKDW 63'& SHUVRQQHO RIWHQ GR QRW HYHQ XVH H[WRUWHG IXQGV IRU WKH
    SXUSRVHVWKH\VWDWH9LOODJHUVKDYHREVHUYHGWKDWWHPSOHVDQGVFKRROVZKLFK
    ORFDO63'&DXWKRULWLHVSURPLVHGWREXLOGZLWKWKHPRQH\FROOHFWHGZHUHQHYHU
    DFWXDOO\FRQVWUXFWHG
    
    ³7KH\GHPDQGHGPRQH\RQFHRUWZLFHDPRQWK,IWKHYLOODJHUVFDQQRW
    JLYHPRQH\WKH\KDYHWROHDYHWKHYLOODJHWRORRNIRUPRQH\IURPRWKHU
    SODFHV0RVWRIWKHYLOODJHUVDUHLQWKLVSRVLWLRQ0DQ\YLOODJHUVFDPH
    WRWKHERUGHUWRZRUN:HFDQ¶WFRXQWKRZPDQ\,I,FRXQWRQO\0
    YLOODJHWKHUHZHUHRYHUYLOODJHUVZKRFDPHWRORRNIRUPRQH\WRPHHW
    WKH'.%$GHPDQGV´
    6DZ*N PDOH 0YLOODJH3D¶DQ'LVWULFW 6HSW 
    
    6XFK ZLGHVSUHDG DQG V\VWHPDWLF H[WRUWLRQ IRUFHV PDQ\ YLOODJHUV ZKR DUH
    DOUHDG\ IDFLQJ ILQDQFLDO GLIILFXOWLHV WR VLQN GHHSHU LQWR OLIHWKUHDWHQLQJ SRYHUW\
    $V REVHUYHG E\ 6DZ *N LQ WKH TXRWH DERYH PDQ\ YLOODJHUV KDYH WR OHDYH
    WKHLUKRPHVDQGIDPLOLHVWRORRNIRUZRUNLQRWKHUSODFHVMXVWWRPHHWWKHLUEDVLF
    QHHGVDQGSD\PRQH\GHPDQGHGE\PLOLWDU\IRUFHV
    

    
    
    7KLVLQWHUYLHZZDVFRQGXFWHGDWDYLOODJHLQ.DUHQ6WDWHDGMDFHQWWRWKH7KDL%XUPDERUGHU
    7KH VSHDNHU¶V VWDWHPHQW WKDW µYLOODJHUV FDPH WR WKH ERUGHU WR ZRUN¶ UHIHUV ERWK WR WKRVH ZKR
    UHPDLQRQWKH%XUPDVLGHRIWKHERUGHUDQGWKRVHZKRKDYHJRQHRQWRILQGZRUNLQ7KDLODQG

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    /RRWLQJ
    
    2QWRSRIUHJXODU63'&GHPDQGVIRUODERXUPRQH\IRRGDQGRWKHUVXSSOLHV
    DUP\ SHUVRQQHO RIWHQ VWHDO RU ORRW YLOODJHUV¶ SURSHUW\ 9LOODJHUVKDYHUHSRUWHG
    WKDW VROGLHUV FRPH WR WKHLU YLOODJH RIWHQ DW QLJKW WR VWHDO OLYHVWRFN VXFK DV
    FKLFNHQV DQG SLJV RU EUHDN LQWR WKHLU KRPHV WR WDNH ZKDW OLPLWHG YDOXDEOHV
    YLOODJHUVSRVVHVV/RRWLQJRFFXUVEHFDXVHVHQLRURIILFHUVRIWHQVHOORIIWKHIRRG
    DOORFDWHGWRORZUDQNLQJVROGLHUVNQRZLQJIXOOZHOOWKDWWKHVROGLHUVZLOOLQWXUQ
    VWHDO OLYHVWRFN DQG RWKHU IRRG IURP YLOODJH FRPPXQLWLHV LQ RUGHU WR VXUYLYH
    /RRWLQJDQGWKHIWDGGWRWKHORQJOLVWRIKDUGVKLSVIDFHGE\YLOODJHUVLQ63'&
    FRQWUROOHGDUHDVRIUXUDO.DUHQ6WDWH
    
    ³7KH63'&PLOLWDU\VROGLHUVKDYHDOUHDG\FRPHWRRXUYLOODJHHLJKWWLPHV
    DQGHYHU\WLPHWKH\WRRNRXUSLJVFKLFNHQVDQGGXFNV7KH\¶YHQRWRQO\
    WDNHQRXUPDQJRHVEXWDOVRFXWGRZQRXUPDQJRWUHHV´
    1DZ*N IHPDOH *NYLOODJH1\DXQJOHELQ'LVWULFW $SULO 
    
    0RYHPHQW5HVWULFWLRQV
    
    ³7KH\GLGQ¶WDOORZXVWRJRRXWDWQLJKWDQGDOVRZHFRXOGQ¶WYLVLWHDFK
    RWKHU HYHQ LI ZH KDG VRPHWKLQJ YHU\ LPSRUWDQW WR GR  ,I WKH\ VDZ XV
    DQ\ZKHUHDWQLJKWWLPHWKH\ZRXOGVKRRWDQGNLOOXV´
    1DZ0 IHPDOH :YLOODJH1\DXQJOHELQ'LVWULFW )HE 
    
    0RYHPHQW UHVWULFWLRQV LQ .DUHQ 6WDWH SULPDULO\ VHUYH WR FRQILQH FLYLOLDQV WR
    UHORFDWLRQ VLWHV ZKHUH VROGLHUV FDQ PRUH HDVLO\ HQIRUFH H[SORLWDWLYH GHPDQGV
    VXFKDVIRUFHGODERXUDQGDUELWUDU\WD[DWLRQ'XHWRWKHVHUHVWULFWLRQVYLOODJHUV
    DUHXQDEOHWRWUDYHOIUHHO\WRWKHLUIDUPILHOGVRUSODQWDWLRQVIRUZRUNDVWKH\ULVN
    EHLQJ VKRW RQ VLJKW E\ VROGLHUV RSHUDWLQJ LQ WKH DUHD  5HVWULFWLRQV DUH RIWHQ
    HQIRUFHGDWFKHFNSRLQWVRQYLOODJHURDGVDQGLQYROYHQLJKWWLPHFXUIHZVXVXDOO\
    DFFRPSDQLHGE\DWKUHDWRISK\VLFDODEXVHDQGILQHVIRUQRQFRPSOLDQFH
    
    )RUH[DPSOHIURP-XQHWR6HSWHPEHU63'&DQG'.%$IRUFHVRSHUDWLQJ
    LQ 3D
    DQ WRZQVKLS RI 7KDWRQ 'LVWULFW SURKLELWHG WKH  YLOODJHV LQ 7¶*NRK %RK
    YLOODJHWUDFWDQG+D7¶5HKYLOODJHWUDFWIURPVSHQGLQJWLPHLQWKHLUZRUNSODFHVDW
    QLJKW  7KH\ LVVXHG RUGHUV WKDW YLOODJHUV FRXOG RQO\ JR WR ZRUN RXWVLGH WKH
    YLOODJHIURPDPWRSPDQGKDGWRUHPDLQLQWKHYLOODJHDIWHUSP
    'XHWRWKHVHUHVWULFWLRQVYLOODJHUV¶FURSVZHUHGHVWUR\HGE\FDWWOHZDQGHULQJLQ
    WKHDUHD
    
    5HVWULFWLRQV RQ PRYHPHQW DQG WKH WKUHDW WR HQIRUFH WKHP VHUYH WR XQGHUPLQH
    YLOODJHUV¶OLYHOLKRRGV:KHQYLOODJHUVDUHQRWDOORZHGWRVOHHSLQWKHLUIDUPILHOG
    KXWV±DVLVWKHWUDGLWLRQDODJULFXOWXUDOSUDFWLFHLQWKHDUHD±WKH\FDQQRWVSHQG
    HQRXJKWLPHWHQGLQJFURSVWKDWUHTXLUHVSHFLDODWWHQWLRQRUWKDWDUHORFDWHGIDU
    DZD\IURPWKHYLOODJH,QVRPHFDVHVFURSVGLHEHFDXVHIDUPHUVDUHXQDEOHWR
    UHJXODUO\ ZDWHU WKHLU ILHOGV  6RPH FURSV DUH GHVWUR\HG E\ LQVHFWV DQG ZLOG

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    DQLPDOV  7KHVH FRPELQHG IDFWRUV LQ WXUQ OHDG WR LQFUHDVHG IRRG LQVHFXULW\
    DPRQJYLOODJHUVLQ.DUHQ6WDWHDQGPDNHLWGLIILFXOWWRVLPSO\VXUYLYH
    
    $EXVHVWLHGWRDUPHGFRQIOLFWDQGSHUVHFXWLRQ
    
    $OWKRXJK WKH RYHUZKHOPLQJ PDMRULW\ RI DEXVHV FLWHG E\ YLOODJHUV LQ WKHVH
    LQWHUYLHZV ZHUH H[SORLWDWLYH LQ QDWXUH LQWHUYLHZHHV DOVR RFFDVLRQDOO\ FLWHG
    DEXVHV SHUSHWUDWHG E\ 63'& DQG '.%$ IRUFHV WKDW DUH PRUH FRPPRQO\
    DVVRFLDWHG ZLWK DUPHG FRQIOLFW DQG SHUVHFXWLRQ  ,W LV LPSRUWDQW WR QRWH WKDW
    ZKLOHWKHPDMRULW\RIWKHDUHDVFRQWDLQHGZLWKLQ3DSXQ7KDWRQ'RRSOD\DDQG
    1\DXQJOHELQ GLVWULFWV DUH XQGHU ILUP 63'& FRQWURO WKHUH DUH SDWFKHV RI HDFK
    GLVWULFWZKLFKDUHVWLOOFRQWHVWHGE\WKH.1/$$VDUHVXOWDEXVHVDVVRFLDWHG
    ZLWKDUPHGFRQIOLFWDQGSHUVHFXWLRQFRQWLQXHLQWKHVHDUHDVDVZHOO:LWKWKHLU
    LQFOXVLRQ KHUH WKH UHDGHU FDQ PRUH IXOO\ XQGHUVWDQG WKH HQYLURQPHQW RI WRWDO
    DEXVHHQGXUHGE\UHVLGHQWVRI63'&FRQWUROOHG.DUHQ6WDWH
    
    6FRUFKHGHDUWKSROLF\
    
    ³7KH 63'& VROGLHUV GHVWUR\HG RXU IRRG E\ WKURZLQJ LW RQ WKH JURXQG
    EXUQLQJWKHULFHVWRUHVDQGKRXVHV6RQRZZHGRQ¶WKDYHHQRXJKIRRG
    WRVHUYHRXUIDPLO\´
    6DZ6 PDOH /9LOODJH1\DXQJOHELQ'LVWULFW 2FW 
    
    ,Q RUGHU WR EHWWHU IDFLOLWDWH IRUFHG UHORFDWLRQ 63'& IRUFHV KDYH HPSOR\HG D
    VFRUFKHG HDUWKFDPSDLJQDJDLQVWFLYLOLDQVZKRZKLOVWOLYLQJLQRQHRIWKHIRXU
    GLVWULFWV GLVFXVVHG KHUH VWLOO UHPDLQ LQ DUHDV FXUUHQWO\ RXWVLGH ILUP PLOLWDU\
    FRQWURO  7R SUHYHQW UHVLGHQWV IURP UHWXUQLQJ WR WKHLU KRPHV IROORZLQJ IRUFHG
    UHORFDWLRQ RU IOLJKW LQWR KLGLQJ %XUPD $UP\ VROGLHUV GHVWUR\ EXLOGLQJV EXUQ
    GRZQIRRGVWRUHVDQGFURSODQGDQGSODQWODQGPLQHVLQDQGDURXQGDEDQGRQHG
    YLOODJHV  6ROGLHUV W\SLFDOO\ ORRW YLOODJHUV¶ SHUVRQDO SURSHUW\ DQG GHVWUR\
    ZKDWHYHU WKH\ FDQQRW WDNH ZLWK WKHP  7KH\ WDUJHW QRQ63'& FRQWUROOHG
    YLOODJHV DQG KLGLQJ VLWHV IDUPV ILHOGV DQG IRRG VWRUDJH IDFLOLWLHV WR PDNH OLIH
    XQEHDUDEOHIRUWKRVHRXWVLGHRI63'&FRQWURO$IWHUUHWXUQLQJWRWKHLUYLOODJHV
    UHVLGHQWVRIWHQILQGWKHLUOLYHVWRFNNLOOHGRUOHIWWRURWE\GHSDUWLQJVROGLHUV
    
    /DQGPLQHV
    
    ,Q DUHDV XQGHU WKH FRQWURO RI WKH 63'& RU LWV DOOLHG DUPLHV ODQGPLQHV DUH
    URXWLQHO\ ODLG DURXQG DUP\ FDPSV WR SUHYHQW DWWDFNV IURP .1/$ VROGLHUV
    /DQGPLQHV SODFHG RQ SDWKV DQG URDGV DUH XVHG WR DPEXVK DQG NLOO .1/$
    VROGLHUVZKLOHPLQHVODLGDURXQGYLOODJHVUHORFDWLRQVLWHVDQGRQIRUHVWSDWKV
    VHUYH WR UHVWULFW YLOODJHUV¶ PRYHPHQWV DQG SUHYHQW WKH UHWXUQ RI UHORFDWHG
    YLOODJHUV RU WKRVH ZKR KDYH IOHG LQWR KLGLQJ  9LOODJHUV LQ KLGLQJ RIWHQ FDQQRW
    FURVVYHKLFOHURDGVIRUIHDURIPLQHV7KHPLQHVGHSOR\HGDURXQGGHSRSXODWHG
    YLOODJHVDOVRSUHYHQWYLOODJHUVIURPUHWXUQLQJWRWKHLURULJLQDOKRPHV
    

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    ,QWHUYLHZHHVUHSRUWHGWKDWYLOODJHUVDQGDQLPDOVKDYHEHHQLQMXUHGRUNLOOHGE\
    ODQGPLQHVWKDWZHUHODLGRQWKHURDGVIRUHVWSDWKVRULQWKHDUHDVVXUURXQGLQJ
    YLOODJHV)RULQVWDQFHRQ2FWREHUWK\HDUROG6DZ3DK1\D/RRD
    UHVLGHQW RI .KDZ 7KR .HH YLOODJH 'WD *UHK 7RZQVKLS 3D
    DQ 'LVWULFW ZDV
    ZDONLQJWRKLVKLOOVLGHIDUPILHOGORFDWHGDERXWPLQXWHVIURPWKHYLOODJH2Q
    WKHZD\KHVWHSSHGRQDODQGPLQHODLGE\VROGLHUVIURP'.%$%ULJDGH
    %DWWDOLRQ  XQGHU WKH FRPPDQG RI GHSXW\ FRPSDQ\ FRPPDQGHU 3DK 0XK
    1DZ'ZHK+HZDVVHYHUHO\LQMXUHGDQGVXEVHTXHQWO\GLHG
    
    7KHZLGHVSUHDGXVHRIODQGPLQHVDVDPHDQVWRUHVWULFWYLOODJHUV¶PRYHPHQWV
    KDV JUHDWO\ XQGHUPLQHG YLOODJHUV¶ HIIRUWV WR PHHW WKHLU EDVLF OLYHOLKRRG QHHGV
    )RULQVWDQFHIDUPHUVFDQQRWOHDYHUHORFDWLRQVLWHVWRWHQGWKHLUFURSV$QGVR
    DVLQWHUYLHZHHVH[SODLQHGWR.+5*PDQ\YLOODJHUVPXVWOHDYHWKHLUKRPHVLQ
    RUGHUWRVXUYLYH
    
    ³, FDPH KHUH EHFDXVH WKH 63'& RSSUHVVHG XV DQG ZH GLGQ
    W KDYH D
    FKDQFHWRVWXG\0\IDPLO\DQGRWKHUIDPLOLHVIDFHGLIILFXOWLHVEHFDXVH
    WKH\ GRQ
    W KDYH D FKDQFH WR HDUQ WKHLU OLYLQJ IUHHO\ EHFDXVH 63'&
    VROGLHUV SODQWHG ODQGPLQHV RQ WKH ZD\ WR WKH KLOO ILHOGV  )RU WKHVH
    UHDVRQVP\SDUHQWVFRXOGQ
    WDIIRUGWRVHQGPHWRVFKRRO´
    6DZ. PDOH $YLOODJH1\DXQJOHELQ'LVWULFW 0D\ 
    
    3HUVHFXWLRQ
    
    :KLOH WKH IRXU GLVWULFWV H[DPLQHG KHUH DUH XQGHU H[WHQVLYH 63'& RU '.%$
    FRQWURO.18DQG.1/$SHUVRQQHOFRQWLQXHWRRSHUDWHLQWKHDUHD%RWK63'&
    DQG '.%$ IRUFHV KDYH SHUVHFXWHG YLOODJHUV W\SLFDOO\ WKURXJK KDUDVVPHQW
    GHWHQWLRQ DQG WRUWXUH RQ WKH DOOHJHG JURXQGV WKDW WKH\ KDYH FRQWDFWHG RU
    VXSSRUWHG.1/$IRUFHVRUWKH.186ROGLHUVRIWHQIUDPHVXFKDEXVHDVSDUWRI
    FRXQWHULQVXUJHQF\RSHUDWLRQVDVHLWKHUSXQLVKPHQWIRUVXSSRUWLQJWKH.18RU
    .1/$ RU LQ RUGHU WR JHW LQIRUPDWLRQ IURP YLOODJHUV DERXW RQJRLQJ .1/$
    RSHUDWLRQV+RZHYHULWDOVRDSSHDUVWKDWLQPDQ\FDVHVVXFKDEXVHVLPSO\
    IXQFWLRQVDVDIURQWIRUH[WRUWLRQ
    
    7KHUH DUH VHYHUDO FDVHV IURP DPRQJVW WKH  LQWHUYLHZV LQ ZKLFK YLOODJHUV
    ZHUH DUUHVWHG DQG SXQLVKHG IRU DOOHJHGO\ FRQWDFWLQJ WKH .18 RU .1/$  ,Q
    VRPH LQVWDQFHV YLOODJHUV ZHUH DVNHG WR VKRZ WKH VROGLHUV .1/$ FDPS
    ORFDWLRQV  ,I WKH YLOODJHUV WROG WKH 63'& WKDW WKH\ GLGQRWNQRZWKHORFDWLRQV
    WKH\ ZHUH DVVXPHG E\ WKH VROGLHUV WR EH O\LQJ  9LOODJHUV ZHUH WKHQ DUUHVWHG
    DQGWRUWXUHG
    
    'XH WR WKH LQVHFXULW\ UHODWHG WR VXFK DEXVH VRPH YLOODJHUV LQ .DUHQ 6WDWH
    HVSHFLDOO\ WKRVH ZKR KDYH H[SHULHQFHG SK\VLFDO YLROHQFH KDYH GHFLGHG WR
    PRYH IURP WKHLU KRPHV WR ,'3 FDPSV UHIXJHH FDPSV LQ 7KDLODQG RU PLJUDQW
    FRPPXQLWLHVERWKLQ%XUPDDQGDEURDG
    

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    &RQFOXVLRQ
    
    9LOODJHUVGHSHQGRQIDUPLQJDVWKHPDLQVRXUFHRILQFRPH7KH\GRQ¶W
    KDYHDQ\RWKHUZRUNWRVXSSOHPHQWWKHLULQFRPHV7KHPRQH\WKH\HDUQ
    IURPWKHLUMREVGRHVQ¶WUHIOHFWWKHHIIRUWWKH\PDNH:HGRQ¶WKDYHDQ\
    RWKHUVSHFLDOLQFRPH:HMXVWVHOORXUSDGG\DQGEX\RWKHUIRRG,QP\
    HVWLPDWH MXVW  SHRSOH ZRUNHG RQ WKHLU IDUPV DQG WKH UHVW RI WKH
    SHRSOH GLGQ¶W ZRUN RQ IDUPV  7KH\¶YH JRQH WR ILQG ZRUN LQ 7KDLODQG
    7KH\WKRXJKWWKDWHYHQLIWKH\GLGIDUPZRUN>DWKRPH@WKH\FRXOGQHYHU
    JHWHQRXJKIRRG
    8: PDOH 3YLOODJH'RRSOD\D'LVWULFW $XJ 
    
    $V WKH LQWHUYLHZV H[DPLQHG LQ WKLV FKDSWHU LOOXVWUDWH YLOODJHUV OLYLQJ LQ 63'&
    FRQWUROOHG DUHDV RI .DUHQ 6WDWH H[SHULHQFH ZLGHVSUHDG DQG V\VWHPDWLF DEXVH
    DW WKH KDQGV RI PLOLWDU\ SHUVRQQHO  0RVW W\SLFDOO\ LQ 63'&FRQWUROOHG DUHDV
    VXFK DEXVH LV H[SORLWDWLYH LQ FKDUDFWHU DQG UHJXODUO\ FRPPLWWHG RYHU D
    SURORQJHG SHULRG RI WLPH  6XFK DEXVHV VHYHUHO\ H[DFHUEDWH SRYHUW\
    OLYHOLKRRGVYXOQHUDELOLW\DQGIRRGLQVHFXULW\
    
    6RPH YLOODJHUV LQWHUYLHZHG ZLWKLQ .DUHQ 6WDWH KDYH H[SOLFLWO\ FLWHG DEXVH DQG
    LWVHIIHFWVDVIDFWRUVFRPSHOOLQJWKHPVHOYHVWKHLUIDPLO\PHPEHUVRURWKHUVLQ
    WKHLUFRPPXQLW\WROHDYHWKHLUKRPHVDQGVHHNZRUNDEURDG+RZHYHULQPRVW
    FDVHV LW ZDV QRW HYLGHQW ZKDW PLJUDWLRQ FKRLFHV YLOODJHUV PD\ KDYH
    VXEVHTXHQWO\ PDGH  ,QGHHG LQWHUYLHZHHV WKHPVHOYHV RIWHQ GLG QRW NQRZ  $
    PRUHFRPSOHWHDQGDFFXUDWHXQGHUVWDQGLQJRIWKHUROHRIDEXVHDQGLWVHIIHFWV
    LQPRWLYDWLQJSHRSOHWROHDYHKRPHDQGVHHNZRUNDEURDGFDQRQO\FRPHIURP
    WKH WHVWLPRQLHV RI WKRVH ZKR KDYH DOUHDG\ GHFLGHG WR PRYH  6XFK H[DPSOHV
    ZLOOEHH[DPLQHGLQWKHIROORZLQJWZRFKDSWHUV
    
    
    
    

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    'DWD6HW3XVKIDFWRUVDQGPLJUDQWVWDWHPHQWV
    
    $V FRPSRQHQWV RI PLJUDWLRQ µSXVK IDFWRUV¶ UHIHU WR WKH FRQVWUDLQWV GLIILFXOWLHV
    DQGWKUHDWVLQSHRSOH¶VKRPHDUHDVZKLFKµSXVK¶WKHPWRVHHNDEHWWHUVLWXDWLRQ
    HOVHZKHUH7KHVHIDFWRUVPD\EHVRFLDOSROLWLFDOHFRQRPLFRUHQYLURQPHQWDO
    0RVWDFFRXQWVRIFRQWHPSRUDU\%XUPDHPSKDVLVHSRRUHFRQRPLFFRQGLWLRQVDV
    WKH PRVW VLJQLILFDQW SXVK IDFWRUV IXHOOLQJ PLJUDWLRQ RXW RI WKH FRXQWU\  )RU
    H[DPSOH WKH &KLDQJ 0DLEDVHG 0$3 IRXQGDWLRQ GHVFULEHV WKH PLJUDWLRQ
    VLWXDWLRQWKXV
    
    ³$ GHFDGH DJR LQFRPLQJ PLJUDQWV IURP %XUPD FDPH SUHGRPLQDQWO\
    IURPERUGHUDUHDVZKHUHWKH%XUPHVHUHJLPHZDVHQIRUFLQJSROLFLHVRI
    IRUFHG UHORFDWLRQ IRUFHG ODERXU DQG ZKHUH WKHUH ZDV DUPHG FRQIOLFW
    WRGD\ PLJUDQWV FRPH IURP DOO RYHU %XUPD DV WKH HFRQRPLF VLWXDWLRQ
    GHWHULRUDWHVDQGDIIHFWVDOOWKHSHRSOHRI%XUPD´
    
    $VSRRUHFRQRPLFFRQGLWLRQVDWSODFHVRIRULJLQDUHQRWJHQHUDOO\DFFHSWHGDV
    OHJLWLPDWH JURXQGV IRU DV\OXP RU DFFHVV WR UHIXJHH FDPSV UHJLRQDO
    JRYHUQPHQWVKDYHRYHUZKHOPLQJO\DVVHUWHGWKDWWKHPDMRULW\RIWKHSHRSOHIURP
    %XUPD WUDYHOOLQJ WR DUULYLQJ DW DQG ZRUNLQJ ZLWKLQ QHLJKERXULQJ FRXQWULHV DUH
    HFRQRPLF DQG W\SLFDOO\ µLOOHJDO¶  PLJUDQWV  7KRVH VHHNLQJ ZRUN DEURDG DUH
    WKXV W\SLFDOO\ GHHPHG WR EH OHDYLQJ WKHLU KRPHV GXH WR VRPH VRUW RI JHQHULF
    µWKLUG ZRUOG SRYHUW\¶ XQFRQQHFWHG WR DEXVH YLROHQFH DQG SROLWLFDO FRQVWUDLQWV
    7KLVFRQYHQWLRQDOXQGHUVWDQGLQJRIHFRQRPLFPLJUDQWVDVRSSRVHGWRUHIXJHHV
    DQG,'3VLVLOOXVWUDWHGLQFKDUWRQWKHIROORZLQJSDJH
    
    :KLOHHFRQRPLFIDFWRUVDUHLQGHHGNH\HOHPHQWVRIPLJUDWLRQZLWKLQDQGRXWRI
    %XUPDLWLVPLVOHDGLQJWREHOLHYHWKDWWKHVHDUHWKHRQO\IDFWRUVWKDWFRQWULEXWH
    WRPLJUDWLRQIURPSHRSOHV¶KRPHDUHDV:KLOHDOOLQWHUYLHZHHVZKRVSRNHWR
    .+5* LQ 7KDLODQG FLWHG HFRQRPLF GLIILFXOWLHV ZLWKLQ %XUPD DV IDFWRUV
    LQIOXHQFLQJ WKHLU FKRLFH WR VHHN ZRUN DEURDG  RI WKHVH LQGLYLGXDOV URXJKO\
      FLWHG H[SORLWDWLYH DEXVHV RIWHQ LQ FRPELQDWLRQ DQG RYHU D SURORQJHG
    SHULRG  DV IDFWRUV DIIHFWLQJ WKHLU HFRQRPLF VLWXDWLRQ LQ %XUPD  ([SORLWDWLYH
    DEXVHVFLWHGE\LQWHUYLHZHHVLQFOXGHGIRUFHGODERXUDUELWUDU\WD[DWLRQH[WRUWLRQ
    DQGODQGFRQILVFDWLRQDVZHOODVPRYHPHQWUHVWULFWLRQVXVHGWRSUHYHQWHYDVLRQ
    DQGIDFLOLWDWHGHPDQGV7KHEUHDNGRZQRIWKHYDULRXVW\SHVRIDEXVHVIDFHG
    ZKLOHOLYLQJLQ%XUPDFLWHGE\LQWHUYLHZHHVDUHVKRZQLQFKDUWRQWKHIROORZLQJ
    SDJH
    
    
     1R +XPDQ %HLQJ LV ,OOHJDO 1R 0LJUDQW :RUNHU LV ,OOHJDO  ± 0$3)RXQGDWLRQ
    $FFHVVHGDWZZZPDSIRXQGDWLRQFPRUJHQJ3')HQJPDS\UVERRNSGIRQ0DUFKWK
    
    
    )RUH[DPSOHWKH%%&UHSRUWVWKDW³PDQ\FRXQWULHVLQFOXGLQJ7KDLODQGFODVVWKH5RKLQJ\DV
    DVLOOHJDOHFRQRPLFPLJUDQWVDQGUHIXVHWRUHFRJQLVHWKHPDVUHIXJHHV´LQ³81WRH[SDQG1RUWK
    %XUPD 0LVVLRQ´ %%& 0DUFK WK   $FFHVVHG DW KWWSQHZVEEFFRXNKLDVLD
    SDFLILFVWPRQ0DUFKWK

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    
    &KDUW&RQYHQWLRQDOXQGHUVWDQGLQJVRIUHIXJHHV,'3VDQGµHFRQRPLFPLJUDQWV¶

    
    
    
    
    
    &KDUW$EXVHVVXVWDLQHGRUZLWQHVVHGLQ%XUPDSULRUWRPLJUDWLRQ 

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    7KHUHVXOWVRIWKH7KDLODQGEDVHGLQWHUYLHZVFRQGXFWHGE\.+5*VXJJHVWWKDW
    WKH YDVW PDMRULW\ RI WKRVH IURP %XUPD ZKR VHHN ZRUN DEURDG DUH IOHHLQJ WKH
    FXPXODWLYH HIIHFWV RI H[SORLWDWLRQ DQG RWKHU DEXVH  $VLGH IURP H[SORLWDWLYH
    DEXVHV D IHZ LQWHUYLHZHHV DOVR FLWHG DEXVHV UHODWHG WR SROLWLFDO DQG RWKHU
    SHUVHFXWLRQ  ,Q RQH FDVH WKH LQWHUYLHZHH KDG EHHQ DUELWUDULO\ GHWDLQHG IRU
    KDYLQJ XUJHG RWKHUV WR YRWH DJDLQVW WKH QHZ FRQVWLWXWLRQ LQ WKH 0D\ 
    UHIHUHQGXPDQGLQWZRRWKHUVFDVHVWKHLQWHUYLHZHHVH[SODLQHGWKDWORFDO63'&
    DXWKRULWLHVZRXOGDUELWUDULO\DUUHVWDQ\RQHZKRUHIXVHGWRSD\DUELWUDU\WD[DWLRQ
    GHPDQGV ± WKXV FURVVLQJ RYHU LQWR IRUPV RI H[SORLWDWLYH DEXVH  ,Q DQRWKHU
    FDVHWKHLQWHUYLHZHHKDGIDFHGUHSHDWHGKDUDVVPHQWRQJURXQGVRIDOOHJHGO\
    KDYLQJFRQWDFWHGWKH.1/$
    
    ,Q DGGLWLRQ WR WKH ODUJH QXPEHUV RI LQWHUYLHZHHV ZKR FLWHG FDVHV RI DEXVH
    H[SORLWDWLYHRURWKHUZLVH VRPHDOVRH[SODLQHGWKDWWKHKDUPIXOHIIHFWVRIVXFK
    DEXVH ZHUH FRPSRXQGHG E\ UHVWULFWLYH HFRQRPLF DQG HQYLURQPHQWDO IDFWRUV
    7KHVH LQFOXGHG OLPLWHG HPSOR\PHQW SURVSHFWV DW RU QHDU SODFHV RI RULJLQ DQG
    FURSIDLOXUHIURPIORRGLQJRUGURXJKW)XUWKHUPRUHGXHWRDODFNRIORZLQWHUHVW
    FUHGLW PDQ\ LQWHUYLHZHHV FLWHG DQ XQPDQDJHDEOH GHEW ZKLFK WKH\ ZHUH
    FRPSHOOHG WR WDNH RQ ± RIWHQ LQ RUGHU WR PHHWILQDQFLDOUHTXLUHPHQWVUHVXOWLQJ
    IURP H[SORLWDWLYH DEXVH  ,Q VRPH FDVHV LQDELOLW\ WR UHSD\ GHEW OHG WR WKH
    FRQILVFDWLRQRIDJULFXOWXUDOODQGDQGWKXVORVVRIOLYHOLKRRG
    
    ,WLVUHOHYDQWWRSRLQWRXWWKDWQRQHRIWKRVH7KDLODQGEDVHGLQWHUYLHZHHVFLWHG
    VLWXDWLRQVRIJHQHUDOLVHGYLROHQFHRUPLOLWDU\DWWDFNVDJDLQVWWKHLUFRPPXQLWLHV
    DVIDFWRUVFRPSHOOLQJWKHPWROHDYHWKHLUKRPHV:KLOHWKHUHDUHPDQ\FDVHV
    RI LQGLYLGXDOV ZKR IOHH YLROHQFH RU PLOLWDU\ DWWDFNV DQG HQWHU PLJUDQW ZRUNHU
    FRPPXQLWLHVLQ7KDLODQGRUHOVHZKHUHDOORIWKRVHLQWHUYLHZHGE\.+5*IRU
    WKLV UHSRUW FDPH IURP DUHDV RI UHODWLYHO\ ILUP 63'& FRQWURO   6LWXDWLRQV RI
    JHQHUDOLVHG YLROHQFH PLOLWDU\ DWWDFNV DJDLQVW YLOODJHV ODQGPLQHV DQG RWKHU
    WKUHDWVUHODWHGWRDUPHGFRQIOLFWDUHIDUPRUHSUHYDOHQWLQDUHDV VXFKDVPXFK
    RIQRUWKHUQ.DUHQ6WDWH ZKHUH63'&FRQWUROLVPRUHWHQXRXV&LYLOLDQVIOHHLQJ
    WKHVHDUHDVKDYHRIWHQVRXJKWDFFHVVWR,'3FDPSVHOVHZKHUHLQ.DUHQ6WDWH
    RULIWKH\KDYHWKHULJKWFRQQHFWLRQVWR7KDLODQGEDVHGUHIXJHHFDPSV:KLOH
    WKRVHUHJLVWHUHGLQUHIXJHHFDPSVKDYHRIWHQVXEVHTXHQWO\OHIWWKRVHFDPSVWR

    
    
    :KLOHVXFKSXVKIDFWRUVGRQRWHDVLO\ILWZLWKLQWKHFRQYHQWLRQDOUHIXJHHGHILQLWLRQ DVZLOOEH
    H[DPLQHG LQ &KDSWHU   WKH GHILQLWLRQ RI LQWHUQDOO\ GLVSODFHG SHUVRQV ,'3V  SURYLGHG E\ WKH
    *XLGLQJ3ULQFLSOHVRQ,QWHUQDO'LVSODFHPHQWLQFOXGHVWKRVH³ZKRKDYHEHHQIRUFHGRUREOLJHGWR
    IOHH RU WR OHDYH WKHLU KRPHV LQ RUGHU WR DYRLG WKH HIIHFWV RI YLRODWLRQV RI KXPDQ ULJKWV´
    :KLOH WKH *XLGLQJ 3ULQFLSOHV DUH QRW LPPHGLDWHO\ WUDQVIHUDEOH WR WKH VLWXDWLRQ RI WKRVH IURP
    %XUPD QRZ UHVLGLQJ DEURDG WKH FULWHULD IRU TXDOLILFDWLRQ DV DQ ,'3 FRQWDLQHG WKHUHLQ VKRXOG
    QHYHUWKHOHVV SURPSW D PRUH QXDQFHG GLVFXVVLRQ RI WKH UROH RI FXPXODWLYH H[SORLWDWLYH DEXVH
    ZLWKLQ HFRQRPLF SXVK IDFWRUV FRPSHOOLQJ LQGLYLGXDOV DV µOLYHOLKRRGV UHIXJHHV¶  WR OHDYH WKHLU
    KRPHV
    
     6HH IRU H[DPSOH , %UHHV ³5HIXJHH %XVLQHVV 6WUDWHJLHV RI :RUN RQ WKH 7KDL±%XUPD
    %RUGHU´-RXUQDORI5HIXJHH6WXGLHV  S

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ZRUNRXWVLGH ZKHWKHURQQHDUE\IDUPVRUDWXUEDQDUHDV WKHUHZHUHQRVXFK


    FDVHVDPRQJVWWKRVHLQWHUYLHZHGE\.+5*
    
    7KH DEXVLYH HFRQRPLF DQG HQYLURQPHQWDO IDFWRUV ZKLFK LQWHUYLHZHHV GLG FLWH
    DVKDYLQJLQIOXHQFHGWKHLUFKRLFHWROHDYHWKHLUKRPHVLQ%XUPDDQGVHDUFKIRU
    ZRUNDEURDGZLOOEHH[DPLQHGLQPRUHGHWDLOLQWKHUHVWRIWKLVFKDSWHU
    
    )RUFHGODERXU
    
    )RUFHGODERXUZDVWKHVLQJOHPRVWFRPPRQDEXVHFLWHGE\LQWHUYLHZHHV2XW
    RI WKH  LQGLYLGXDOV LQWHUYLHZHG  RI WKHVH DSSUR[LPDWHO\   VDLG WKH\
    KDG H[SHULHQFHG IRUFHG ODERXU WKHPVHOYHV RU KDG ZLWQHVVHG RWKHUV LQ WKHLU
    FRPPXQLW\SHUIRUPLQJIRUFHGODERXU7KLVLQFOXGHGFOHDQLQJDUP\FDPSVDQG
    EDVHVFOHDULQJWKHIRUHVWRYHUJURZWKIURPDORQJVLGHYHKLFOHURDGVVHUYLQJDV
    SRUWHUV FDUU\LQJ PLOLWDU\ VXSSOLHV IRUFHG DJULFXOWXUDO ODERXU SUHSDULQJ DQG
    GHOLYHULQJWKDWFKVKLQJOHVDQGEDPERRSROHVWRDUP\FDPSVDQGFRQVWUXFWLQJ
    IHQFHVURDGVFDQDOVDQGDUP\FDPSV
    
    ³:H KDG WR FRQVWUXFW D YHKLFOH URDG EXLOG PLOLWDU\ FKHFN SRLQWV DQG
    FOHDQRXWWKHDUP\FRPSRXQGV6RPHWLPHVZHKDGWRZRUNWKHZKROH
    GD\EXWRWKHUWLPHVZH¶GRQO\ZRUNKDOIWKHGD\:KHQZHZHUHVLFNZH
    KDGWRDVNWKHFKLOGUHQWRJRIRUXV6RPHSHRSOHKLUHGRWKHUVWRJRIRU
    WKHP  7KH\ KDG WR SD\ WKHP  N\DW >86 @ SHU GD\  ,I ZHGLGQ¶W
    FRPSO\ ZLWK WKHLU >63'& DXWKRULWLHV¶@ IRUFHG ODERXU GHPDQGV WKH\
    SXQLVKHGXVVXFKDVE\SXWWLQJXVLQSULVRQ´
    87K PDOH 0YLOODJH7KDWRQ'LVWULFW.DUHQ6WDWH )HE 
    
    ,QRUGHUWRWDNHSDUWLQIRUFHGODERXUYLOODJHUVPXVWWDNHWLPHDZD\IURPWKHLU
    UHJXODUOLYHOLKRRGDFWLYLWLHV,QVRPHFDVHVFLWHGE\LQWHUYLHZHHVZKHQDGXOWV
    ZHUH LOO RU RWKHUZLVH XQDEOH WR WDNH SDUW LQ WKH ODERXU FKLOGUHQ KDG WR JR
    LQVWHDG,QRWKHUFDVHVYLOODJHUVZHUHDEOHWRSD\DILQHLQOLHXRIODERXULQJRU
    KLUHRWKHUVWRVHUYHLQWKHLUSODFH
    
    ³:HFRXOGQ¶WZRUNDOORIWKHWLPH6RPHWLPHVZHKDGWRGRIRUFHGODERXU
    IRU WKH %XUPD $UP\ VXFK DV FOHDULQJ URDGV DQG FDPSV  , KDG WR GR
    IRUFHGODERXUZKHQ,ZDVLQP\YLOODJHEXWPRVWRIWKHWLPHP\SDUHQWV
    ZRXOG JR IRU WKDW  :H KDG WR FOHDQ >WKH VLGHV RI@ WKH URDGV DQG WKH
    PLOLWDU\ FDPS  :H KDG WR GR WKDW WKUHHWRIRXU WLPHV SHU \HDU  7KH
    YLOODJHUVKDYHWRGRIRUFHGODERXUHYHU\\HDU(DFKWLPHWDNHVRQHGD\
    ,I YLOODJHUV GRQ¶W JR WKH\ >63'& DXWKRULWLHV@ ILQH WKHP  8VXDOO\ RQH
    YLOODJHUKDVWRSD\N\DW>86@SHUGD\>LQOLHXRIIRUFHGODERXU@
    ,IZHKDYHWRJRIRUIRUFHGODERXUZHKDYHWRVWRSJRLQJWRZRUNIRUWKDW
    GD\´
    .R: PDOH .YLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH -DQ 
    
    
     $OO LQWHUYLHZV FLWHG LQ WKLV FKDSWHU ZHUH FRQGXFWHG E\ .+5* EHWZHHQ -DQXDU\ DQG 0DUFK
    ZLWKLQGLYLGXDOVIURP%XUPDFXUUHQWO\ZRUNLQJLQ7KDLODQG

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    ,QPDQ\FDVHVIRUFHGODERXUZDVMXVWRQHRIPXOWLSOHDEXVHVDQGFRQVWUDLQWV
    OHDGLQJ WR D ZRUVHQLQJ HFRQRPLF VLWXDWLRQ  +RZHYHU VRPH LQWHUYLHZHHV
    VSHFLILFDOO\ LGHQWLILHG IRUFHG ODERXU DV D SULPDU\ FDXVH LQLWVHOIRIPLJUDWLRQWR
    7KDLODQG
    
    ³+DOIRIWKHSHRSOHLQP\YLOODJHKDYHFRPHWRZRUNKHUH>LQ7KDLODQG@
    7KHUHDVRQLVWKDWSHRSOHLQP\YLOODJHFDQ¶WEHDUWKHIRUFHGODERXUZRUN
    7KHUHIRUHWKH\¶YHFDPHWRZRUNKHUH´
    0D.K IHPDOH $YLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    $UELWUDU\WD[DWLRQ
    
    $QRWKHU FRPPRQ IRUP RI H[SORLWDWLRQ LV DUELWUDU\ WD[DWLRQ  7KHVH µWD[HV¶ DUH
    RIWHQ QRW HYHQ XVHG WR IXQG WKH SURYLVLRQ RI JRRGV RU VHUYLFHV E\ WKH 63'&
    2XW RI WKH  LQGLYLGXDOV ZRUNLQJ LQ 7KDLODQG ZKR VSRNH WR .+5* 
    DSSUR[LPDWHO\   FLWHG VRPH IRUP RI DUELWUDU\ WD[DWLRQ  7KHVH LQFOXGHG
    KDYLQJ WR SD\ IHHV WR ILQDQFH WKH ORFDO µSHRSOH¶V PLOLWLD¶ URDG FRQVWUXFWLRQ
    FLYLOLDQV VHUYLQJ DV VHQWULHV VFKRRO PDLQWHQDQFH DQG RSHUDWLRQV DQG
    LQWHUPLWWHQWVSRUWLQJHYHQWV)XUWKHUPRUHLQWHUYLHZHHVFLWHGOLFHQVLQJIHHVIRU
    WKH SURGXFWLRQ RI DOFRKRO DQQXDO LQNLQG SDGG\ FURS TXRWDV DQG µWD[HV¶ RQ
    ZDWHUHOHFWULFLW\DQGKRXVLQJDPRQJVWRWKHUV7KHIROORZLQJH[DPSOHTXRWHG
    DW OHQJWK SURYLGHV D SDUWLFXODUO\ GHVFULSWLYH DFFRXQW RI H[FHVVLYH DUELWUDU\
    WD[DWLRQ7KHLQWHUYLHZHH\HDUROG0D0H[SODLQHGWR.+5*LQ)HEUXDU\
    KRZVKHKDGWRVHQGPRQH\HDUQHGLQ7KDLODQGEDFNWRIDPLO\PHPEHUV
    LQ .DUHQ 6WDWH LQ RUGHU WR DVVLVW WKHP LQ SD\LQJ YDULRXV IRUPV RI DUELWUDU\
    WD[DWLRQ
    
    
    7KH\NQRZYHU\ZHOOWKDWZHGRQ
    WKDYHPRQH\EXWWKH\IRUFHXVWRSD\
    
    ³:H GRQ
    W QHHG WR VHUYH DV SRUWHUV EXW P\ EURWKHU WROG PH WKDW WKH\¶UH QRZ
    RUJDQLVLQJWKH3\L7KX6LW>µSHRSOH¶VPLOLWLD¶@%XWWKH\RQO\UHFUXLW\RXQJSHRSOH
    LQWKHYLOODJH7KHYLOODJHUVDOVRKDYHWRSD\PRQH\IRUWKH3\L7KX6LWVRP\
    PRWKHUVDLGWRPHµ,I\RXKDYHPRQH\SOHDVHJLYHLWWRXV¶%XWDWWKDWWLPHZH
    GLGQ¶WKDYHPRQH\:KHQP\PRWKHUZHQWEDFNWR%XUPD,FRXOGRQO\JLYHKHU
     N\DW >86 @ EHFDXVH , GLGQ¶W HDUQ PXFK >LQ 7KDLODQG@ HLWKHU  0\
    PRWKHUWROGPHWKDWWKH\VWLOOKDYHWRSD\WD[HV7KH\KDYHWRSD\WZRWRWKUHH
    WLPHV SHU PRQWK EXW WKH\ GRQ¶W NQRZ ZKDW WKH PRQH\¶V IRU EHFDXVH WKH\¶UH
    LOOLWHUDWH
    
    &XUUHQWO\ HDFK WLPH WKH\ KDYH WR SD\ DW OHDVW  N\DW >86 @ DQG WKH
    PD[LPXP DPRXQW KDV EHHQ RYHU  N\DW >86 @ 7KH\ >63'&
    DXWKRULWLHV@KDYHGLYLGHGWKHYLOODJHUVLQWRWKUHHFODVVHV7KHVHDUHORZPLGGOH
    
    
    3HRSOH¶V0LOLWLD 3\L7KX6LWLQ%XUPHVH SDUDPLOLWDU\PLOLWLDUHFUXLWHGE\WKH63'&WRVHUYH
    DVDKRPHJXDUG

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    DQG KLJK FODVVHV  )RU H[DPSOH LI SHRSOH DUH IURP WKH ORZ FODVV JURXS WKH\
    KDYHWRSD\N\DW>86@7KHKLJKFODVVSHRSOHKDYHWRSD\N\DW
    >86@DQGIRUWKHPLGGOHFODVVLW¶VN\DW>86@
    
    6RPHWLPHVWKH\>63'&DXWKRULWLHV@KDYHVDLGWKDWWKLVPRQH\ZLOOEHXVHGIRU
    URDGFRQVWUXFWLRQ%XWLQP\RSLQLRQLQRUGHUWREXLOGURDGVLW¶VQRWSURSHUWR
    FROOHFW PRQH\ IURP YLOODJHUV  7KLV \HDU P\ IDPLO\ IDFHV D ELJ SUREOHP
    EHFDXVHDIORRGGHVWUR\HGWKHLUFURSV:HDOVRKDYHWRJLYHULFHDVSD\PHQW
    IRU VHQWU\ IHHV  %XW ZH GRQ¶W JURZ ULFH VR ZH KDYH WR EX\ ULFH IURP RWKHU
    YLOODJHUVLQRUGHUWRSD\>WKHVHQWU\IHHV@%XWZHGRQ¶WKDYHPRQH\WREX\WKDW
    >ULFH@VRRXUGHEWKDVLQFUHDVHG)RUH[DPSOHWKHILUVWWLPHWKH\DVNHGIRUULFH
    ZH FRXOGQ¶W SD\ VR ZH ZHUH DOUHDG\ LQ DUUHDUV WR WKHP  $JDLQ WKH VHFRQG
    WLPHZHZHUHVXSSRVHGWRSD\EXWZHFRXOGQ¶W6RRXUGHEW¶VEHHQJUDGXDOO\
    LQFUHDVLQJ  :H FDQ RQO\ SD\ VL[ WR VHYHQ WLPHV RXW RI WHQ EHFDXVH ZH GRQ¶W
    KDYHZRUN>LQ%XUPD@HLWKHU2QO\P\EURWKHUZRUNV>LQ%XUPD@WRHDUQPRQH\
    +HUH>LQ7KDLODQG@ZHDOVRGRQ¶WHDUQPXFK
    
    ,Q P\RSLQLRQ>WKHYLOODJHUVJRWR7KDLODQG@EHFDXVHWKHLUIDPLOLHV
    OLYHOLKRRGV
    DUHQ¶WJRLQJZHOO,QWKHYLOODJHWKH\FDQ¶WDIIRUGWRSD\WKHGHPDQGV>E\ORFDO
    DXWKRULWLHV@VRWKH\WU\WRILQGZRUN%XWLI\RXOLYHLQWKHYLOODJHDQG\RXFDQ¶W
    SD\ZKDW\RX¶UHRUGHUHGWRSD\\RX¶OOEHYHUEDOO\DEXVHG,I\RXGRQ
    WZDQWWR
    IDFH WKLV NLQG RI WKLQJ\RXKDYHWRVWUXJJOHWRILQGDZD\>WRSD\@$FWXDOO\
    WKH\>ORFDO63'&DXWKRULWLHV@NQRZYHU\ZHOOWKDWZHGRQ¶WKDYHPRQH\EXWWKH\
    IRUFHXVWRSD\
    
    0D0 IHPDOH 'YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    
    &URSTXRWDV
    
    $OWKRXJKWKHSROLF\RIFROOHFWLQJFURSTXRWDVDVDIRUPRIWD[DWLRQZDVRIILFLDOO\
    DEROLVKHG LQ  PDQ\ DJULFXOWXUDO ZRUNHUV LQ %XUPD DV ZHOO DV WKRVH
    LQGLYLGXDOVZKRP.+5*LQWHUYLHZHGLQ7KDLODQGUHSRUWWKDWWKHSUDFWLFHZLGHO\
    FRQWLQXHV7KHDFWXDOTXRWDW\SLFDOO\YDULHVIURPEHWZHHQWRWLQVRISDGG\
    SHUDFUHRIIDUPODQG$WLQLVDVWDQGDUGXQLWRIPHDVXUHLQ%XUPDDPRXQWLQJ
    WR  NJV   OEV RI XQKXVNHG ULFH SDGG\   :KLOH LQ VRPH FDVHV
    YLOODJHUV PXVW VLPSO\ JLYH WKH SDGG\ WR ORFDO DXWKRULWLHV LQ RWKHU FDVHV WKH\
    PXVWVHOOLWWRORFDODXWKRULWLHVIRUDSULFHIDUEHORZWKHPDUNHWUDWH
    
    ³:H>IDPLO\PHPEHUVLQ%XUPD@GHSHQGRQRXUIDUPILHOGV:HJHW
    WLQVRISDGG\SHUD\HDU:HKDYHWRSD\WLQVRXWRIWLQVRISDGG\
    DVWD[>,QWKHSDVW@ZHILUVWSXWDVLGHHQRXJKULFHIRURXUIDPLO\$IWHU
    
    
    $PRXQWVGHPDQGHGDUHQRWWKHVDPHHDFKWLPH7KHVSHDNHUJLYHVWKHH[DPSOHRIYLOODJHUV
    EHLQJGHPDQGHGN\DWN\DWRUN\DW<HWVKHQRWHVEHIRUHKDQGWKDWGHPDQGV
    RQKHUIDPLO\UDQJHGIURPWRN\DW

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    ZH SXW LW DVLGH LI WKHUH ZDV DQ\ UHPDLQLQJ ULFH ZH¶G VHOO LW WR WKH
    DXWKRULWLHVLQRUGHUWRJHWPRQH\1RZWKHSROLF\KDVFKDQJHG(YHQ
    WKRXJK ZH GRQ¶W KDYH HQRXJK ULFH IRU RXU IDPLO\ ZH KDYH WR VHOO LW WR
    WKHP >63'& DXWKRULWLHV@ DFFRUGLQJ WR WKH DPRXQW RI ULFH WKDW WKH\
    VSHFLI\«,IZHGRQ¶WJLYHWKHPWKHFURSWD[DVWKH\GHPDQGWKH\FRPH
    WRDUUHVWWKHIDUPHUVDQGSXWWKHPLQMDLO´
    8$ PDOH /YLOODJH3HJX'LYLVLRQ )HE 
    
    ([WRUWLRQ
    
    2Q WRS RI WKH LQFUHDVLQJO\ V\VWHPDWLVHG IRUPV RI DUELWUDU\ WD[DWLRQ IRXU
    LQWHUYLHZHHV DERXW   DOVR VDLG WKDW WKH\ KDG H[SHULHQFHG RWKHU DG KRF
    GHPDQGV IRU FDVK RU JRRGV E\ 6WDWH DXWKRULWLHV  7KUHH RI WKHVH FDVHV RI
    H[WRUWLRQ ZHUH UHODWHG WR ,' FKHFNV ZKLOH WUDYHOOLQJ ZLWK WZR DW FKHFNSRLQWV
    DORQJ WKH KLJKZD\ WR 0\DZDGG\ LQ .DUHQ 6WDWH DQG RQH DW D UDQGRP SROLFH
    FKHFNRQDEXVLQ5DQJRRQ7KHIRXUWKLQVWDQFHLQYROYHG%XUPD$UP\VROGLHUV
    IRUFLEO\FRQILVFDWLQJYLOODJHUV¶IRRG
    
    ³2QFHZKHQ,FDPHWRWKH.DZNDUHLNFKHFNSRLQWWKH\GHPDQGHG
    N\DW>86@IURPHDFKRIXV:HDVNHGWKHPZKDWWKH\ZRXOGGR>ZLWK
    WKHPRQH\@DQGWKH\VDLGWKDWLWZDVIRUOLIHLQVXUDQFH,I,KDGQ¶WJLYHQ
    WKHP >WKH PRQH\@ WKH\¶G KDYH EHFRPH DQJU\  (YHQ SHRSOH ZKR KDYH
    ,'FDUGVKDYHWRJLYHWKHPPRQH\«:KHQ,FDPH>WR7KDLODQG@LWFRVW
    PHN\DW>86@ZKHQ,DUULYHGLQ0\DZDGG\EHFDXVH,FDPHDW
    DWLPHZKHQWKH\ZHUHEORFNLQJWKHURDG,W¶VQRWHDV\WRFRPHKHUH>WR
    7KDLODQG@´
    6DZ+W PDOH 7YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    (QYLURQPHQWDOIDFWRUV
    
    :KLOH WKH YDVW PDMRULW\ RI LQWHUYLHZHHV FLWHG H[SHULHQFH ZLWK VRPH IRUP RU
    H[SORLWDWLYH DEXVH LW LV LPSRUWDQW WR QRWH WKDW VXFK DEXVH VHOGRP RFFXUUHG LQ
    LVRODWLRQIURPRWKHUSXVKIDFWRUV7KHKDUPIXOFXPXODWLYHHIIHFWVRIDEXVHZHUH
    RIWHQFRPSRXQGHGE\HQYLURQPHQWDOIDFWRUV)RUH[DPSOHVRPHLQWHUYLHZHHV
    H[SODLQHG WKDW IORRGLQJ GURXJKW DQG ZLOG DQLPDOV ZHUH SHUVLVWHQW WKUHDWV WR
    DJULFXOWXUDO OLYHOLKRRGV DQG DIIHFWHG VLJQLILFDQW QXPEHUV RI SHRSOH LQ WKHLU
    FRPPXQLWLHV
    
    ³6RPH\HDUVEHFDXVHRIKHDY\UDLQDQGIORRGLQJWKHSDGG\GLHG6RPH
    \HDUV EHFDXVH RI OLWWOH UDLQ WKH SDGG\ ILHOGV FRXOGQ¶W JHW HQRXJK ZDWHU
    $OVR LQVHFWV GHVWUR\HG WKH FURS ILHOGV DQG VR WKH SDGG\ GLHG  3HRSOH
    ZKR GLGQ¶W ZDQW WR IDUP DQ\PRUH FDPH WR 7KDLODQG  6RPHWLPHV PLFH
    DQGZLOGSLJVDOVRFDPHDQGGHVWUR\HGWKHFURSILHOGV´
    6DZ+W PDOH 7YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    +LJKLQWHUHVWGHEW
    
    $V D FRQVHTXHQFH RI SHUVLVWHQW H[SORLWDWLYH GHPDQGV HQYLURQPHQWDO
    FRQVWUDLQWV DQG OLPLWHG HPSOR\PHQW RSSRUWXQLWLHV PDQ\ LQWHUYLHZHHV WROG
    .+5*WKDWWKH\DQGWKHLUIDPLOLHVZHUHHLWKHUFXUUHQWO\LQGHEWRUKDGEHHQLQ
    GHEWSULRUWROHDYLQJ%XUPD2XWRIWKHLQWHUYLHZHHVZKRVSRNHWR.+5*
     RI WKHVH DERXW   FLWHG LQVWDQFHV RI GHEW  7KHVH LQFOXGHG  SHRSOH
     FXUUHQWO\LQGHEWDQRWKHU  ZKRKDGEHHQLQGHEWSULRUWROHDYLQJ
    %XUPD DQG  PRUH ZKR H[SODLQHG WKDW ZKLOH WKH\ WKHPVHOYHV KDG QRW WDNHQ
    RXW ORDQV GHEW ZDV D VLJQLILFDQW IDFWRU LQ WKH HFRQRPLF VLWXDWLRQ RI PDQ\
    UHVLGHQWVRIWKHLUYLOODJH
    
    ³7KHUHZHUHWLPHVZKHQZHFRXOGQ¶WDIIRUGRXUPHGLFDOELOOVDQGZHKDG
    WR ERUURZ PRQH\ IURP RWKHU SHRSOH  0\ EURWKHUV KDG WR ILQG ZRUN
    RXWVLGHRIWKHYLOODJHLQRUGHUWRUHSD\WKHGHEW«,IZHZHUHWRERUURZ
    N\DW>86@ZH¶GKDYHWRSD\DQLQWHUHVWRI>SHUPRQWK@´
    1DZ/ IHPDOH 7KYLOODJH3HJX'LYLVLRQ )HE 
    
    ³:KHQ,ZDVLQWKDWNLQGRI>ILQDQFLDO@VLWXDWLRQ,¶GJRWRSHRSOHZKRORDQ
    PRQH\ ZLWK LQWHUHVW  7KH LQWHUHVW V\VWHP LV QRW OLNH LW LV KHUH >LQ
    7KDLODQG@ZKHUH\RXSD\RQFHDPRQWK,QRXUDUHD>RI6KDQ6WDWH@LW¶V
    REOLJDWRU\ >WR SD\@ RQFH HYHU\ WHQ GD\V  :KHQ , WRRN RXW >D ORDQ RI@
     N\DW >86 @ , KDG WR SD\  N\DW >86  HYHU\ WHQ GD\V@
    $QG IRU RQH PRQWK , KDG WR SD\  N\DW >86 @  6R WKH LQWHUHVW
    UDWH LV   ,W¶V ZRUVH WKDQ WKH UDWH WKDW WKH &KHWWLDUV FKDUJHG IRU
    LQWHUHVW´
    0D7K IHPDOH $YLOODJH6KDQ6WDWH )HE 
    
    7\SLFDOO\ORDQVDUHWDNHQRXWIURPORFDOLQGHSHQGHQWPRQH\OHQGHUV7KHPRVW
    FRPPRQO\FLWHGUDWHRILQWHUHVWZDVSHUPRQWK2QHLQWHUYLHZHH0D7K
    TXRWHGDERYHFLWHGDILJXUHRIHYHU\WHQGD\V WKXVSHUPRQWK DQG
    DQRWKHULQWHUYLHZHHVDLGLQWHUHVWUDWHVFRXOGEHDVKLJKDVSHUPRQWK$
    IHZ LQWHUYLHZHHV VDLG WKDW LW ZDV VRPHWLPHV SRVVLEOH WR WDNH RXW ORDQV IURP
    IDPLO\ DQG IULHQGV IURP ZKRP LQWHUHVW UDWHV FDQ EH DV ORZ DV  WR  SHU
    PRQWK:KLOHLQUDUHFDVHVIDUPHUVDUHDEOHWRJHWVPDOOORDQVIURPWKH6WDWH
    FRQWUROOHG0\DQPDU$JULFXOWXUDO'HYHORSPHQW%DQN 0$'% DWDUDWHRISHU
    PRQWKLQWHUYLHZHHVH[SODLQHGWKDWVXFKDVVLVWDQFHLVGLIILFXOWWRDFFHVV
    
    ³7KH\ >0$'% DXWKRULWLHV@ OHQG PRQH\ WR IDUPHUV DW  LQWHUHVW >SHU
    PRQWK@ DQG DW WKH HQG RI WKH \HDU WKH IDUPHUV PXVW UHSD\  ,I ZH WDNH
     N\DW >86 @ ZH PXVW JLYH  N\DW LQWHUHVW >SHU PRQWK@ DQG
    DIWHU  PRQWKV LW EHFRPHV  >VLF@ N\DW LQ LQWHUHVW IRU >D ORDQ RI@
    N\DW2QO\SHRSOHZKRRZQILHOGVFDQJHWWKDWPRQH\,¶YHDOVR

    
    
     &KHWWLDUV DUH D FDVWH IURP VRXWKHUQ ,QGLD ZKR ZHUH ZLGHO\ LQYROYHG LQ PRQH\ OHQGLQJ LQ
    %XUPDGXULQJWKHFRORQLDOSHULRG

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    KDGDQH[SHULHQFHRIJHWWLQJWKDWPRQH\$VRIQRZ,¶YHDOUHDG\UHSDLG
    LW  ,I SHRSOH GRQ¶W KDYH DQ\ ILHOGV WKH\ FDQ¶W JHW LW  :KHQ WKH WLPH
    FRPHVZHKDYHWRSD\WKHPRQH\EDFNZLWKLQWHUHVWDQGLIIDUPHUVFDQ¶W
    SD\WKH\¶UHDUUHVWHGDQGILQHG´
    .R&K PDOH +YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH -DQ 
    
    (FRQRPLVW6HDQ7XUQHOOKDVH[SODLQHGWKHZRUNLQJVRIWKH0$'%LQGHWDLODQG
    KLVGHVFULSWLRQKHOSVLOOXVWUDWHZK\IDUPHUVLQ%XUPD ZKRPDNHXSDERXW
    RI WKH FRXQWU\¶V SRSXODWLRQ  PXVW IUHTXHQWO\ WXUQ WR KLJK LQWHUHVW ORDQV WR
    VXSSRUWWKHLUPHDQVRIOLYHOLKRRG
    
    ³%XUPD¶V FRPPHUFLDO EDQNV DUH IRUELGGHQ WR OHQG WR IDUPHUV IRU
    FXOWLYDWLRQ  ,Q WKHLU SODFH DV IRUPDO FUHGLW SURYLGHUV LV WKH VWDWHRZQHG
    0\DQPD>VLF@$JULFXOWXUDO'HYHORSPHQW%DQN 0$'% 7KLVLQVWLWXWLRQLV
    PHDQW WR EH WKH VROH SURYLGHU RI UXUDO FUHGLW LQ %XUPD >ZLWK@ LWV RZQ
    PRGHVWREMHFWLYHRISURYLGLQJILQDQFHWRPHHWMXVWRIDFXOWLYDWRU¶V
    SURGXFWLRQ FRVWV«  ,Q IDFW LQ SUDFWLFH WKH 0$'% IDOOV ZHOO VKRUW RI
    PHHWLQJHYHQWKLVPRGHVWWDUJHW$YHUDJHORDQVWRSDGG\FXOWLYDWRUV«
    ZHUHEHWZHHQ.WR. WR SHUDFUHRISDGG\LQ
    «7KHODFNRIILQDQFHLPSRVHVKHDY\FRVWVRQ%XUPHVHDJULFXOWXUH
    LQ WHUPV RI SURGXFWLYLW\ DQG FHUWDLQO\ LQKLELWV WKH DELOLW\ RI FXOWLYDWRUV WR
    PRYHWRPRUHFDSLWDOLQWHQVLYHPRGHVRISURGXFWLRQ´
    
    /DQGFRQILVFDWLRQDQGGHVWUXFWLRQ
    
    $VVRPHYLOODJHUVPXVWSOHGJHWKHLUODQGWRPRQH\OHQGHUVLQRUGHUWRDFFHVV
    ORDQV DQ LQDELOLW\ WR UHSD\ GHEWV KDV OHG WR ODQG FRQILVFDWLRQ DQG WKXV D
    ZRUVHQHGILQDQFLDODQGOLYHOLKRRGVVLWXDWLRQIRUWKRVHLQYROYHG
    
    ³:KHQ ZH KDG D SUREOHP ZLWK RXU OLYHOLKRRG ZH KDG WR SDZQ RXU
    RUFKDUGIRUN\DW>86@7KHSULFHRIIRRGKDGULVHQDQGZH
    FRXOGQ¶WILQGZRUNLQWKHYLOODJH7KHSDZQEURNHUDOVRGLGQ¶WKDYHPXFK
    PRQH\EXWKHUKXVEDQGZDVZRUNLQJLQ0DOD\VLD6RVKHZDVDEOHWR
    JHWRXUODQGIRUDFKHDSSULFH/DWHUZHFRXOGQ¶WUHSD\KHUWKHLQWHUHVW
    RUHYHQWKHFDSLWDO:HKDGWRIRUVDNHRXURUFKDUG´
    1DZ/ IHPDOH 7KYLOODJH3HJX'LYLVLRQ )HE 
    
    ,Q RWKHU FDVHV KRZHYHU LQWHUYLHZHHV H[SODLQHG WKDW 6WDWH DXWKRULWLHV QRW
    LQGHSHQGHQW PRQH\ OHQGHUV DUH WKH RQHV SULPDULO\ UHVSRQVLEOH IRU ODQG
    FRQILVFDWLRQ6WDWHDXWKRULWLHVKDYHFRQILVFDWHGODQGRQWKHJURXQGVWKDWODQG
    LVQRWEHLQJIDUPHGWKDWODQGRZQHUVFDQQRWSD\WKHLUµWD[HV¶WKDWODQGRZQHUV
    GR QRW FRPSO\ ZLWK WKH 6WDWHGLFWDWHG DJULFXOWXUDO DJHQGD RU WKDW 6WDWH
    GHYHORSPHQW SURMHFWV UHTXLUH D SDUWLFXODU SLHFH RI SURSHUW\  7KH FODLP WKDW
    6WDWH DXWKRULWLHV FDQ MXVWLILDEO\ FRQILVFDWH ODQG WKDW LV QRW FXUUHQWO\ XQGHU
    
    
    67XUQHOO³%XUPD¶V,QVDWLDEOH6WDWH´$VLDQ6XUYH\  ±

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    FXOWLYDWLRQ LV SDUWLFXODUO\ WKUHDWHQLQJ WR WKRVH ZKR PD\ WHPSRUDULO\ OHDYH WKHLU
    KRPHVWRZRUNDEURDG
    
    ³:KHQ WKH YLOODJHUV DUHQ¶W DEOH WR SD\ WKH WD[HV IRU WKHLU ODQG WKH
    JRYHUQPHQW FRPHV DQG FRQILVFDWHV WKH ODQG ZLWK QR FRPSHQVDWLRQ
    5HJDUGOHVV RI ZKHWKHU WKH YLOODJHUV DUH LQ >FXOWLYDWLQJ@ WKH IDUP ILHOGV
    WKH\¶UHUHTXLUHGWRIXOILOOWKHLUREOLJDWLRQV>FURSTXRWDVRUODQGWD[HV@´
    6DZ+W PDOH 7YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    ³7KHJRYHUQPHQWKDVWULHGWRFRQVWUXFWPRUHDQGPRUHYHKLFOHURDGV,Q
    P\YLOODJHWKH\FRQVWUXFWHGDYHKLFOHURDGDQGLWFURVVHGRXUSODQWDWLRQ
    $QG WKH\ GHVWUR\HG DOO WKH WUHHV ZKLFK ZH ZHUH JURZLQJ LQ RXU
    SODQWDWLRQ  :H JURZ FLWUXV IUXLW LQ RXU SODQWDWLRQ  7KH URDG FURVVHG
    WKURXJKWKHFHQWUHRIRXUSODQWDWLRQEXWZHGLGQ¶WJHWDQ\PRQH\IRUWKDW
    >ODQG@´
    87K PDOH 6KYLOODJH3HJX'LYLVLRQ )HE 
    
    &RQFOXVLRQ
    
    $VVWDWHGSUHYLRXVO\EHFDXVHWKHUHLVQRZD\WRHVWDEOLVKKRZPDQ\RIWKRVH
    ZKR ZHUH LQWHUYLHZHG LQ .DUHQ 6WDWH 'DWD 6HW   DQG FLWHG DEXVH DFWXDOO\
    GHFLGHGWROHDYH%XUPDWRILQGZRUNDEURDG'DWD6HWDQG'DWD6HWVKRXOG
    EH YLHZHG DV FRPSOHPHQWDU\ UDWKHU WKDQ GLUHFWO\ OLQNHG  :LWK WKDW LQ PLQG
    .+5*ZLVKHGWRVHHZKHWKHUWKHDEXVHVZKLFKPLJUDQWVFLWHGDVSXVKIDFWRUV
    FRPSHOOLQJWKHPWROHDYH%XUPDUHVHPEOHGWKRVHWKDWZHUHFLWHGE\UHVLGHQWV
    RI.DUHQ6WDWH$VKDVEHHQVKRZQWKHDEXVHVFLWHGLQWKHWZRGDWDVHWVDUH
    H[WUHPHO\VLPLODU%RWKFXUUHQWUHVLGHQWVRI.DUHQ6WDWH 'DWD6HW DQGWKRVH
    IURP %XUPD QRZ ZRUNLQJ LQ 7KDLODQG 'DWD 6HW   RYHUZKHOPLQJO\ FLWHG
    H[SORLWDWLYH GHPDQGV DQG UHVWULFWLRQV DV EHLQJ WKH PRVW SUHYDOHQW IRUPV RI
    DEXVH VXVWDLQHG LQ %XUPD  )XUWKHUPRUH LQWHUYLHZHHV H[SODLQHG WKDW WKHVH
    DEXVHV VLJQLILFDQWO\ HURGHG ILQDQFLDO DQG IRRG VHFXULW\  7KH PDWFK EHWZHHQ
    WKHVH GDWD VHWV VXJJHVWV WKDW 63'& DEXVHV LQ UXUDO %XUPD FRQWULEXWH WR DQ
    XQVXVWDLQDEOHOHYHORISRYHUW\IRUYLOODJHUVDQGWKDWWKDWSRYHUW\LQWXUQIRUFHV
    YLOODJHUVWROHDYHWKHLUKRPHVDQGVHHNZRUNDEURDGLQRUGHUWRVXUYLYH
    
    $V WKH WHVWLPRQLHV LQ WKLV FKDSWHU LOOXVWUDWH SXVK IDFWRUV FRPSHOOLQJ PRVW
    SHRSOHLQ%XUPDWROHDYHWKHLUKRPHVFDQQRWEHUHGXFHGWRDSROLWLFDOHFRQRPLF
    FRQVWUDLQWV XQFRQQHFWHG WR WKH DEXVLYH V\VWHP RI ORFDO JRYHUQDQFH  $V WKH
    KDUPIXO FRQVHTXHQFHV RI DEXVH DUH RIWHQ ZRUVHQHG E\ HQYLURQPHQWDO DQG
    RWKHU HFRQRPLF IDFWRUV LW LV QRW SRVVLEOH LQ PRVW FDVHV WR LVRODWH VLQJOH
    QDUURZO\GHILQHG SXVK IDFWRUV DV WKH VROH H[SODQDWLRQ ZK\ SHRSOH FKRVH WR
    PLJUDWHDEURDGLQVHDUFKRIHPSOR\PHQW+RZHYHULWLVQRWRQO\ZLWKUHJDUG

    
    
    7KLVXQGHUVWDQGLQJKDVEHHQOLNHZLVHQRWHGE\UHVHDUFKHU,QJH%UHHVZKRIRXQGWKDW³3XVK
    IDFWRUVDOPRVWDOZD\VVWHPIURPLQWHUOLQNHGSROLWLFDODQGHFRQRPLFURRWFDXVHVLQ%XUPDZKLFK
    PDNHV LW LPSRVVLEOH WR GLVWLQJXLVK HFRQRPLF PLJUDQWV IURP DV\OXP VHHNHUV DQG UHIXJHHV´  ,

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    WRSXVKIDFWRUVWKDWVLPSOHFODVVLILFDWLRQLVSUREOHPDWLF$VWKHQH[WFKDSWHUZLOO
    VKRZDWWHPSWVWRLVRODWHDQGFDWHJRULVHWKHSXOOIDFWRUVWKDWDWWUDFWSHRSOHIURP
    %XUPDDUHOLNHZLVHIUDXJKWZLWKFRPSOLFDWLRQV

    
    %UHHV³5HIXJHH%XVLQHVV6WUDWHJLHVRI:RUNRQWKH7KDL±%XUPD%RUGHU´-RXUQDORI5HIXJHH
    6WXGLHV  S 

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    'DWD6HW3XOOIDFWRUV
    
    3XOO IDFWRUV DV DVSHFWV RI PLJUDWLRQ DUH JHQHUDOO\ XQGHUVWRRG WR EH WKH
    DWWUDFWLYH VRFLDO SROLWLFDO HFRQRPLF RU HQYLURQPHQWDO IHDWXUHV RI D QHZ DUHD
    WKDW µSXOO¶ SHRSOH DZD\ IURP WKHLU FXUUHQW ORFDWLRQV  7KH SULPDU\ SXOO IDFWRUV
    IXHOOLQJ µHFRQRPLF PLJUDWLRQ¶ KDYH W\SLFDOO\ EHHQ LQGHQWLILHG DV EHWWHU
    HPSOR\PHQW DQG RWKHU ILQDQFLDO RSSRUWXQLWLHV DW D QHZ ORFDWLRQ  %\ FRQWUDVW
    SXOOIDFWRUVIRUUHIXJHHVDQG,'3VDUHUDUHO\DUWLFXODWHGDVVXFKDQGLQVWHDGWKH
    YDULRXVSXVKIDFWRUVRISHUVHFXWLRQDEXVHDUPHGFRQIOLFWDQGRWKHUWKUHDWVWR
    OLIHDQGVHFXULW\DUHVWUHVVHG
    
    3XVK IDFWRUV KRZHYHU FDQQRW IXHO PLJUDWLRQ LQ LVRODWLRQ  :KHQ LQGLYLGXDOV
    VHHNUHIXJHDWDQRWKHUORFDWLRQSXOOIDFWRUVDUHLQGHHGLQYROYHG,QVXFKFDVHV
    WKHSULPDU\SXOOIDFWRUFDQEHXQGHUVWRRGDVDFFHVVWRSURWHFWLRQ7KH2IILFHRI
    WKH 8QLWHG 1DWLRQV +LJK &RPPLVVLRQHU RQ 5HIXJHHV 81+&5  KRZHYHU KDV
    GRZQSOD\HGWKLVSHUVSHFWLYHDVLOOXVWUDWHGLQWKHTXRWHEHORZ7KLVKDVEHHQ
    GXH WR FRQFHUQV WKDW KRVW FRXQWULHV VHHNLQJ WR VWHP LQFRPLQJ PLJUDWLRQ ZLOO
    SODFH UHVWULFWLRQV RQ 81+&5 SURWHFWLRQ ZRUN VKRXOG WKHLU JRYHUQPHQWV GHHP
    VXFKSURWHFWLRQWREHDSXOOIDFWRU
    
    ³2I JURZLQJ FRQFHUQ DUH WKH VLWXDWLRQV ZKHUH JRYHUQPHQWV VWDUW
    SXWWLQJ LQWR TXHVWLRQ WKH SURSULHW\ DQG OHJLWLPDF\ RI DQ\ SURWHFWLRQ
    DFWLYLWLHVSDUWLFXODUO\WKRVHRI81+&57KHDUJXPHQWVHHPVWREHWKDW
    SURWHFWLRQLVDSXOOIDFWRU81+&5¶VUHVSRQVHLVWKDWWKHSXOOIDFWRUVIRU
    LUUHJXODU PLJUDWLRQ LQFOXGH HFRQRPLF RSSRUWXQLWLHV IDPLO\ DQG
    FRPPXQLW\OLQNVDQGHDVHRIRQZDUGPRYHPHQW81+&5E\QRPHDQV
    UDQNVDVWKHPDLQDWWUDFWLRQ´
    
    7KLV GLVWLQFWLRQ EHWZHHQ SURWHFWLRQ DQG SXOO IDFWRUV FDQ SRWHQWLDOO\ VWUHQJWKHQ
    DUJXPHQWVDJDLQVWJRYHUQPHQWUHVWULFWLRQVRQSURWHFWLRQZRUN+RZHYHULWDOVR
    ULVNVHQWUHQFKLQJWKHXQHTXDOUHVSRQVHVWRWKRVHGHHPHGµOHJLWLPDWH¶UHIXJHHV
    VHHNLQJ SURWHFWLRQ DQG WKRVH GHHPHG µLOOHJDO¶ PLJUDQWV VHHNLQJ HPSOR\PHQW
    7KH IDFW LV WKDW VHHNLQJ HPSOR\PHQW DEURDG LV RIWHQ D VHOILQLWLDWHG SURWHFWLRQ
    VWUDWHJ\ XVHG WR HYDGH DEXVH DQG PLWLJDWH WKH HIIHFWV RI DEXVH DW SODFHV RI
    RULJLQ
    
    7KHFRQYHQWLRQDOSHUVSHFWLYHWDNHQE\DLGDJHQFLHVKRZHYHUDVLOOXVWUDWHGLQ
    WKHTXRWHDERXW81+&5SURWHFWLRQDERYHDULVHVRXWRIDQDUURZXQGHUVWDQGLQJ
    RI SURWHFWLRQ DV D WRSGRZQ SURFHVV  ,QGHHG DV LW FXUUHQWO\ VWDQGV 81+&5
    ,1*2V DQG JRYHUQPHQW ERGLHV DUH WKH SULPDU\ SURYLGHUV RI SURWHFWLRQ IRU D
    QDUURZ FDWHJRU\ RI UHIXJHHV ZKR DUH GHHPHG WR EH GHSHQGDQW UHFLSLHQWV
    ODFNLQJ DQ\ DELOLW\ WR DGGUHVV WKHLU RZQ SURWHFWLRQ QHHGV  7KLV DSSURDFK KDV
    
    
    WK0HHWLQJRIWKH6WDQGLQJ&RPPLWWHH6WDWHPHQWE\(ULND)HOOHU$VVLVWDQW+LJK
    &RPPLVVLRQHU±3URWHFWLRQ-XQHWKS$FFHVVHGDW
    ZZZXQKFURUJUHIZRUOGSGILGGSGIRQ0DUFKWK

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    HYROYHGDORQJVLGHFRQYHQWLRQDOGHILQLWLRQVRIUHIXJHHVDQG,'3VDVWKRVHZKR
    IOHHSHUVHFXWLRQRUDUPHGFRQIOLFW6XFKQDUURZGHILQLWLRQVPLVVWKHOHJLWLPDWH
    SURWHFWLRQFRQFHUQVRIWKRVHIOHHLQJWKHKDUPIXOFXPXODWLYHHIIHFWVRISHUVLVWHQW
    H[SORLWDWLYH DEXVH  7KH\ DOVR PLVV RSSRUWXQLWLHV IRU H[WHUQDO VXSSRUW IRU WKH
    PDQ\ VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV ZKLFK PLJUDQW ZRUNHUV UHJXODUO\
    HPSOR\
    
    6HOILQLWLDWHGSURWHFWLRQ
    
    8QGHUVWDQGLQJ KRZ RSSRUWXQLWLHV IRU VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV FDQ
    IXQFWLRQ DV SXOO IDFWRUV UHTXLUHV D FORVHU H[DPLQDWLRQ RI ZKDW LV PHDQWE\WKH
    WHUPµSURWHFWLRQ¶81+&5W\SLFDOO\GHHPVSURWHFWLRQIRUUHIXJHHVWRPHDQOHJDO
    SURWHFWLRQDJDLQVWUHIRXOHPHQW+RZHYHUWKH,QWHUQDWLRQDO&RPPLWWHHRIWKH
    5HG&URVVHPSOR\VDEURDGHUXQGHUVWDQGLQJGHILQLQJSURWHFWLRQDV
    
    ³DOODFWLYLWLHVDLPHGDWREWDLQLQJIXOOUHVSHFWIRUWKHULJKWVRILQGLYLGXDOVLQ
    DFFRUGDQFHZLWKWKHOHWWHUDQGWKHVSLULWRIWKHUHOHYDQWERGLHVRIODZ LH
    KXPDQULJKWVODZLQWHUQDWLRQDOKXPDQLWDULDQODZDQGUHIXJHHODZ ´
    
    ,Q SUDFWLFH SURWHFWLRQ FRYHUV D UDQJH RI VWUDWHJLHV DLPHG DW SUHYHQWLQJ DQG
    PLWLJDWLQJDEXVHDVVLVWLQJWKRVHUHFRYHULQJIURPDEXVHDQGFUHDWLQJDFRQWH[W
    LQ ZKLFK WKH OLNHOLKRRG RI DEXVH LV UHVWULFWHG  .+5* WKHUHIRUH DOVR IROORZV
    WKLVEURDGHUGHILQLWLRQ
    
    )RUYLOODJHUVWRZQVSHRSOHDQGRWKHUVIURP%XUPDVHHNLQJHPSOR\PHQWDEURDG
    FDQIXQFWLRQDVDVHOILQLWLDWHGSURWHFWLRQVWUDWHJ\ZKLFKDOORZVWKHPWRHYDGH
    DEXVHHVFDSHWKHFXPXODWLYHHIIHFWVRISHUVLVWHQWH[SORLWDWLRQDQGPLWLJDWHWKH
    KDUPIXOHIIHFWVRIH[SORLWDWLYHDEXVHRQIDPLO\PHPEHUVUHPDLQLQJEHKLQG7R
    LOOXVWUDWH D FDVH RI HYDVLRQ \HDUROG .R 0 RQH RI WKH  PLJUDQWV IURP
    %XUPDLQWHUYLHZHGWROG.+5*LQ)HEUXDU\WKHPDMRULW\RIWKHUHVLGHQWVRI
    KLV YLOODJH LQ .DUHQ 6WDWH KDG IOHG WR 7KDLODQG WR ILQG ZRUN LQ RUGHU WR DYRLG
    UHJXODUGHPDQGVDQGKDUDVVPHQWE\ORFDO63'&DXWKRULWLHV
    
    ³7KHYLOODJHUVKDYHWRSD\WKHLUODQGWD[HVDQGVRPHWLPHVWKH\>63'&
    VROGLHUV@FRPHWRWKHYLOODJHDQGGHPDQGIRRGIURPWKHYLOODJHUV,IWKH
    YLOODJHUVGRQ¶WJLYHWKHPIRRGWKH\EHDWWKHYLOODJHKHDG7KH\>63'&
    VROGLHUV@GRQ¶WKDYHDQDUP\FDPS>QHDUE\@EXWWKH\DOZD\VFRPHWRWKH
    YLOODJH7KHUHIRUHWKHPDMRULW\RIWKHSHRSOHLQP\YLOODJHKDYHFRPHWR

    
    
     81 +LJK &RPPLVVLRQHU IRU 5HIXJHHV 1RWH RQ 1RQ5HIRXOHPHQW 6XEPLWWHG E\ WKH +LJK
    &RPPLVVLRQHU   $XJXVW (&6&32QOLQH 81+&5 5HIZRUOG DYDLODEOH DW
    KWWSZZZXQKFURUJUHIZRUOGGRFLGDHFFGKWPO$FFHVVHG$SULOWK
    
    3URWHFWLRQRI,QWHUQDOO\'LVSODFHG3HUVRQV,QWHU$JHQF\6WDQGLQJ&RPPLWWHHS
    
    *URZLQJWKH6KHOWHULQJ7UHH3URWHFWLQJ5LJKWVWKURXJK+XPDQLWDULDQ$FWLRQ,QWHU$JHQF\
    6WDQGLQJ&RPPLWWHHS

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ZRUNLQ7KDLODQG7KH\GRQ¶WZDQWWRVWD\LQWKHLUYLOODJHEHFDXVHWKH\¶UH
    DIUDLGWKDWWKH\¶OOKDYHWRGRIRUFHGODERXU´
    .R0 PDOH 7KYLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    1RWDOOPLJUDQWVLQWHUYLHZHGE\.+5*H[SOLFLWO\LGHQWLILHGWKHHYDVLRQRIDEXVH
    DV D SULPDU\ SXOO IDFWRU GUDZLQJ WKHP WR PLJUDQW ZRUNHU FRPPXQLWLHV DEURDG
    0DQ\ WROG .+5* WKDW WKH\ ZHUH GUDZQ WR 7KDLODQG EHFDXVH WKH HPSOR\PHQW
    RSSRUWXQLWLHV DYDLODEOH WKHUH SURYLGHG D ZD\ RI HVFDSLQJ WKH ZRUVHQLQJ
    HFRQRPLFVLWXDWLRQLQ%XUPD
    
    ³,ZDVIRUFHG>E\WKHVLWXDWLRQ@WRFRPHDQGZRUNKHUHZKHQ,ZDVYHU\
    \RXQJ  )RU WKH WZR \HDUV SULRU WR  ZH ZHUH LQ D YHU\ GLIILFXOW
    VLWXDWLRQ  :H KDG D ORW RI GHEW EHFDXVH ZH GLGQ¶W KDYH D IDUP RU DQ\
    FRZV6RP\PRWKHUVDLGWRPHµ'DXJKWHULQ0DH6RW>7KDLODQG@WKH\
    QHHG ZRUNHUV  :K\ GRQ¶W \RX JR WKHUH DQG ZRUN"  , VDLG WR KHU µ<HV
    0XPHYHQWKRXJKZHOLYHKHUHLQWKHYLOODJHZHKDYHORWVRISUREOHPV
    DQG GLIILFXOWLHV¶  $W WKDW WLPH , ZDV LQ D YHU\ GLIILFXOW VLWXDWLRQ  0\
    SDUHQWVZHUHYHU\SRRU´
    0D0 IHPDOH 'YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    2WKHU PLJUDQWV LQWHUYLHZHG E\ .+5* HPSKDVLVHG WKDW HPSOR\PHQW
    RSSRUWXQLWLHV DEURDG SURYLGHG DQ RSSRUWXQLW\ WR VDYH PRQH\ VXSSRUW
    DFFRPSDQ\LQJIDPLO\PHPEHUVVHQGUHPLWWDQFHVWRIDPLO\UHPDLQLQJLQ%XUPD
    DQGUHSD\KLJKLQWHUHVWGHEWV
    
    ³0\ IULHQGV WROG PH WKDW LI ZH FDPH DQG ZRUNHG LQ 7KDLODQG ZH FRXOG
    VDYH PRQH\ DQG VHQG LW EDFN KRPH >WR IDPLO\ LQ %XUPD@  :H KDG
    QHLJKERXUVZKRFDPHWRZRUNLQDZRROIDFWRU\LQ7KDLODQG:KHQWKH\
    FDPH EDFN WKH\ ZHUH DEOH WR KDYH EHWWHU OLYLQJ FRQGLWLRQV  )RU PH ,
    ZDQWHGWREHOLNHWKHPDQGVR,FDPHKHUH1RZ,¶PZRUNLQJLQDZRRO
    IDFWRU\´
    0D7K IHPDOH $YLOODJH6KDQ6WDWH )HE 
    
    *LYHQWKHFRQQHFWLRQLQUXUDO%XUPDEHWZHHQH[SORLWDWLYHDEXVHVDQGSRYHUW\
    OLYHOLKRRGV YXOQHUDELOLW\ DQG IRRG LQVHFXULW\ DV H[DPLQHG LQ WKH SUHYLRXV WZR
    FKDSWHUV VXFKXVHVRIIXQGVHDUQHGDEURDGFDQEHXQGHUVWRRGDVVHUYLQJWR
    OHVVHQWKHKDUPIXOHIIHFWVRIDEXVHVLQ%XUPD
    
    )XUWKHUPRUH UHPLWWDQFHV VHQW E\ PLJUDQW ZRUNHUV RU EURXJKW KRPH LQ SHUVRQ
    DUH DEOH WR KHOS OHVVHQ WKH KDUPIXO HIIHFWV RI H[SORLWDWLYH DEXVH RQ IDPLO\
    PHPEHUV ZKR KDYH UHPDLQHG EHKLQG  $  VWXG\ RI WKH HFRQRPLFV RI
    PLJUDWLRQIURP%XUPDQRWHGWKDWILQDQFLDOUHPLWWDQFHVVHQWE\7KDLODQGEDVHG
    PLJUDQW ZRUNHUV WR IDPLO\ PHPEHUV EDFN KRPH ³ZHUH ODUJH ZHUH XVHG
    GLVSURSRUWLRQDWHO\WRHQVXUHVLPSOHVXUYLYDODQGZHUHUHDOLVHGRYHUZKHOPLQJO\

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    YLD LQIRUPDO PHFKDQLVPV´  7KLV YLHZ VXSSRUWV WKH ILQGLQJV RI .+5*¶V RZQ
    LQWHUYLHZVZLWKPLJUDQWZRUNHUV
    
    ³0\ VLWXDWLRQ KHUH >LQ 7KDLODQG@ LV GLIIHUHQW IURP P\ VLWXDWLRQ LQ %XUPD
    EHFDXVH>ZKLOHZRUNLQJLQ7KDLODQG@,FDQVDYHPRQH\DQGVXSSRUWP\
    IDPLO\ LQ %XUPD  6RPHWLPHV , VHQG EDFN  RU  N\DW >86
    RU@RQFHDPRQWKIRUP\IDPLO\%XWVRPHWLPHV,VHQG
    N\DW >86 @ ZKHQ , FDQ VDYH PRUH PRQH\  ,¶P VXSSRUWLQJ ILYH
    SHRSOH7KHVHSHRSOHDUHP\SDUHQWVDQLHFHDQGWZRQHSKHZVLQVLGH
    %XUPD  :KHQ , OLYHG LQ %XUPD HYHQ WKRXJK , ZRUNHG KDUG , FRXOGQ¶W
    SURYLGHPXFKVXSSRUWIRUP\IDPLO\:KHQ,FDPHWRZRUNKHUH,FRXOG
    VDYHP\PRQH\DQGSURYLGHPRUHVXSSRUWIRUP\IDPLO\´
    0D.K IHPDOH $YLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    6XFKUHPLWWDQFHVDUHHVSHFLDOO\LPSRUWDQWLQWKHFDVHRI%XUPDDVLWLVXVXDOO\
    \RXQJFKLOGUHQDQGWKHHOGHUO\ZKRUHPDLQEHKLQGZKLOHWKRVHRIZRUNLQJDJH
    WUDYHODEURDGLQVHDUFKRIZDJHODERXU
    
    ³1RZ QRW VR PDQ\ SHRSOH OLYH LQ RXU YLOODJH  3HRSOH ZKR DUH PDUULHG
    EXW DUH VWLOO \RXQJ ZLOO OHDYH WKHLU FKLOGUHQ ZLWK WKHLU >WKH FKLOGUHQ¶V@
    JUDQGSDUHQWV DQG JR DQG ZRUN LQ %DQJNRN  &XUUHQWO\ RQO\ P\ EURWKHU
    KDV ZRUN >LQ %XUPD@  0\ SDUHQWV DUH WRR ROG WR ZRUN  7KHLU
    JUDQGFKLOGUHQ >WKH LQWHUYLHZHH¶V FKLOGUHQ@ DUH VWD\LQJ ZLWK WKHP LQ WKH
    YLOODJHLQ%XUPD6RPHWLPHVZHVHQGPRQH\WRWKHPEXWVRPHWLPHVZH
    FDQ¶WVRP\\RXQJHUEURWKHUKDVWRZRUNWRIHHGWKHP+H¶VQRWPDUULHG
    \HW+HVWRSSHGJRLQJWRVFKRRODIWHUKHILQLVKHGJUDGHVHYHQEHFDXVH
    P\PRWKHUKDVDQH\HSUREOHPDQGZHFRXOGQ¶WDIIRUGWRSD\IRUWKHFRVW
    RIWKHRSHUDWLRQVRKHKDVKDGWRWDNHFDUHRIKHU´
    0D0 IHPDOH 'YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    :H FDQ RQFH DJDLQ VHH WKDW WDNLQJ HPSOR\PHQW RSSRUWXQLWLHV DEURDG FDQ
    IXQFWLRQ DV D VHOILQLWLDWHG SURWHFWLRQ VWUDWHJ\ HPSOR\HG E\ PLJUDQW ZRUNHUV
    IURP %XUPD  6XFK RSSRUWXQLWLHV FDQ SURYLGH VRPH PHDVXUH RI IRRG DQG
    OLYHOLKRRGVHFXULW\DOORZLQJZRUNHUVWRVXSSRUWWKHPVHOYHVDQGWKHLUIDPLOLHVDW
    ORFDWLRQVDZD\IURPWKHDEXVHLQWKHLUKRPHDUHDVDQGPLWLJDWHWKHHFRQRPLF
    DQGUHVXOWLQJVRFLDO KDUPRIH[SORLWDWLYHDEXVHRQIDPLO\PHPEHUVUHPDLQLQJ
    LQ%XUPD WKURXJKUHPLWWDQFHV DQGRQWKHPVHOYHV WKURXJKSHUVRQQHOVDYLQJV 
    VKRXOGWKH\UHWXUQKRPH7KLVSURWHFWLRQVWUDWHJ\LQWXUQFRPSULVHVDPDMRU
    SXOOIDFWRUGUDZLQJPLJUDQWVRXWRI%XUPDDVZHOODVWRXUEDQFHQWUHVZLWKLQWKH
    FRXQWU\
    

    
    
    67XUQHOO$9LFDU\DQG:%UDGIRUG³0LJUDQWZRUNHUUHPLWWDQFHVDQG%XUPDDQHFRQRPLF
    DQDO\VLV RI VXUYH\ UHVXOWV´ LQ 'LFWDWRUVKLS 'LVRUGHU DQG 'HFOLQH LQ 0\DQPDU 0RQLTXH
    6NLGPRUHDQG7UHYRU:LOVRQ HGV $18(3UHVV

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    7KHEOXUUHGOLQHEHWZHHQPLJUDQWVDQGUHIXJHHV
    
    $VLGH IURP PLJUDWLRQ LQ VHDUFK RI SURWHFWLRQ IURP H[SORLWDWLYH DEXVH DQG WKH
    FXPXODWLYH HIIHFWV RI H[SORLWDWLYH DEXVH LQWHUYLHZHHV DOVR GHVFULEHG D SXOO
    IDFWRU RI SURWHFWLRQ IRU WKHLU SK\VLFDO VHFXULW\  7KLV LV SDUWLFXODUO\ UHOHYDQW IRU
    WKRVH ZKR IOHG JHQHUDOLVHG DUPHG FRQIOLFW PLOLWDU\ DWWDFNV RQ WKHLU KRPHV RU
    SHUVHFXWLRQ VXFKDVDUP\GHVHUWHUVRUUHDORUDOOHJHGVXSSRUWHUVRIWKH.18
    1/'RURWKHURSSRVLWLRQJURXSV DQGZKRKDYHWUDYHOOHGDEURDGYLDWKHVDPH
    URXWHV DV µHFRQRPLF PLJUDQWV¶  7KRVH IOHHLQJ SHUVHFXWLRQ HDVLO\ ILW ZLWKLQ WKH
    FRQYHQWLRQDO UHIXJHH GHILQLWLRQ DQG KDYH LQ VRPH FRXQWULHV EHHQ DEOH WR
    DFTXLUH81+&5UHFRJQLVHGUHIXJHHVWDWXV7KRVHIOHHLQJJHQHUDOLVHGYLROHQFH
    RUPLOLWDU\DWWDFNVDJDLQVWWKHLUKRPHVILWWKH5R\DO7KDL*RYHUQPHQW¶VFULWHULD
    IRUUHVLGHQF\ZLWKLQ7KDLODQGEDVHGUHIXJHHFDPSV
    
    81+&5KDVXVHGWKHWHUPVµPL[HGPLJUDWLRQ¶DQGµWKHPLJUDWLRQDV\OXPQH[XV¶
    WR GHVFULEH WKLV PRYHPHQW RI FRQYHQWLRQDO UHIXJHHV DORQJVLGH DQG XVLQJ WKH
    VDPHURXWHVDVµHFRQRPLF¶PLJUDQWV7KHVHUHIXJHHVPD\EHHLWKHUXQDEOH
    RU XQZLOOLQJ WR DFFHVV FDPSEDVHG SURWHFWLRQ RSSRUWXQLWLHV RU DV LQ VRPH
    FRXQWULHV WKHUH PD\ EH QR UHIXJHH FDPSV  DQG FKRRVH LQVWHDG WR UHPDLQ
    RXWVLGH DV PLJUDQW ZRUNHUV  :KLOH WKH WKUHDW RI DUUHVW H[WRUWLRQ DQG
    GHSRUWDWLRQE\KRVWFRXQWU\DXWKRULWLHVH[LVWVPLJUDQWZRUNHUFRPPXQLWLHVFDQ
    RIWHQ RIIHU D UHODWLYHO\ PRUH VHFXUH HQYLURQPHQW WKDQ WKDW IURP ZKLFK WKHVH
    UHIXJHHV IOHG  7KHVH FRPPXQLWLHV DOVR RIIHU DQ RSSRUWXQLW\ WR HDUQ PRQH\
    VXSSRUWIDPLO\PHPEHUVDQGVHQGUHPLWWDQFHVWRUHODWLYHVUHPDLQLQJLQ%XUPD
    
    7KHIROORZLQJTXRWHSURYLGHVDQLOOXVWUDWLYHH[DPSOHRIWKHPRWLYDWLRQVEHKLQG
    VXFK µPL[HG PLJUDWLRQ¶  7KH LQWHUYLHZHH D \HDUROG YLOODJHU IURP VRXWKHUQ
    .DUHQ6WDWHIOHGKLVKRPHWREHFRPHDµPLJUDQWZRUNHU¶LQ7KDLODQGDIWHUIDFLQJ
    UHSHDWHG KDUDVVPHQW E\ 63'& DXWKRULWLHV RQ WKH JURXQGV WKDW KH KDG KDG
    FRQWDFWZLWKWKH.18
    
    ³,FDPHKHUHZLWKWKHKHOSRIWKH.18,GRQ¶WZDQWWRSURYLGHWKHQDPH
    RIWKHPDQZKREURXJKWPHKHUH,GDUHGQRWVWD\LQP\YLOODJHEHFDXVH
    WKH63'&$UP\VROGLHUVDOZD\VFDPHWRWKHYLOODJHVRWKHYLOODJHKHDG
    KHOSHGPHFRPHKHUHZLWKWKDWPDQ,MXVWZDQWWRVD\WKDW,GRQ¶WZDQW
    WR JR EDFN WR P\ YLOODJH QRZ EHFDXVH , GRQ¶W ZDQW WR IOHH IURP WKH
    63'&$UP\VROGLHUVDJDLQDQGDJDLQ7KH\DOZD\VFRPHWRP\YLOODJH
    DQGGHPDQGSRUWHUV>SHRSOHWRFRQGXFWIRUFHGODERXUFDUU\LQJVXSSOLHV@
    ,QWKHSDVW,DOZD\VKDGWRIOHHIURPWKHP,¶YHDOVRIDFHGDFFXVDWLRQV

    
    
    7KH5R\DO7KDL*RYHUQPHQWGRHVQRWRIILFLDOO\UHFRJQLVHGLVSODFHGSHRSOHIURP%XUPDZKR
    UHVLGH ZLWKLQ FDPSV LQ 7KDLODQG DV UHIXJHHV EXW UDWKHU DV LQGLYLGXDOV ZKR DUH ³WHPSRUDULO\
    IOHHLQJ ILJKWLQJ´ µ0\ *XQ :DV DV 7DOO DV 0H¶ &KLOG 6ROGLHUV LQ %XUPD  1HZ <RUN
    +XPDQ5LJKWV:DWFKS 
    
    5HIXJHH3URWHFWLRQDQG0L[HG0LJUDWLRQ$3RLQW3ODQRI$FWLRQ81+&5-DQXDU\
    DQG$JHQGDIRU3URWHFWLRQ81+&52FWREHU

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    WKDW,¶YHFRRSHUDWHGZLWKWKH.18DQG,VDLGWRWKHP>63'&DXWKRULWLHV@
    µ,¶P QRW WKH NLQG RI SHUVRQ WKDW \RX¶UH GHVFULELQJ  ,¶P MXVW D VLPSOH
    YLOODJHU¶,FRXOGQRORQJHUHQGXUHWKHLUDFWLRQVVR,FDPHKHUHWRZRUN
    IUHHO\,¶PYHU\DIUDLGRIWKHLUDFWLRQVDJDLQVWXV´
    .R0 PDOH 7KYLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    7R JLYH DQRWKHU H[DPSOH RI DQ LQGLYLGXDO ZRUNLQJ DEURDG ZKR KDG IDFHG
    SHUVHFXWLRQ RQ SROLWLFDO JURXQGV 8 7K XSRQ UHWXUQLQJ IURP 7KDLODQG WR KLV
    YLOODJH LQ 3HJX 'LYLVLRQ ZDV DUUHVWHG IRU HQFRXUDJLQJ IHOORZ YLOODJHUV WR YRWH
    DJDLQVWWKHFRQVWLWXWLRQDOUHIHUHQGXPKHOGLQ0D\8SRQKLVUHOHDVH8
    7KTXLFNO\UHWXUQHGWR7KDLODQG
    
    ³/DVW\HDU,ZHQWEDFNWRP\KRPHWRZQDQGWKRXJKWWKDW,ZRXOGUHWXUQ
    KHUH >WR 7KDLODQG@  %XW P\ VHFWLRQ OHDGHU WROG PH WKDW WKH\ >63'&
    DXWKRULWLHV@ZRXOGQRWDOORZPHWRUHWXUQEHFDXVHZHKDG>WRUHPDLQLQ
    %XUPD@ WR YRWH LQ WKH UHIHUHQGXP  :KHQ , ZHQW IRU WKH UHIHUHQGXP ,
    VDZPDQ\SHRSOHZKRKDGFRPHWRYRWHLQWKHUHIHUHQGXPOLNHPHEXW
    WKH\NQHZQRWKLQJDERXWWKHUHIHUHQGXP,WROGWKHPWRYRWHZLWKDQµ[¶±
    PHDQLQJWRJLYHDYRWHRIGLVDJUHHPHQW>ZLWKWKHQHZFRQVWLWXWLRQ@7KH
    SROLFHFDXJKWPHDQGNHSWPHLQMDLOIRUWKUHHGD\V´
    87K PDOH 6KYLOODJH3HJX'LYLVLRQ )HE 
    
    &RQFOXVLRQ
    
    :KLOH FRQYHQWLRQDO UHIXJHHV ZKR IOHH YLD WKH VDPH URXWHV DV µHFRQRPLF
    PLJUDQWV¶ GR LQGHHG ZDUUDQW SURWHFWLRQ DVVLVWDQFH WKHUH LV DQ LQFUHDVLQJO\
    UHFRJQLVHG QHHG WR JR EH\RQG WKH QDUURZ µPL[HG PLJUDWLRQ¶ IUDPHZRUN  7KLV
    PHDQV DFNQRZOHGJLQJ WKH OHJLWLPDWH SURWHFWLRQ FRQFHUQV DQG VHOILQLWLDWHG
    SURWHFWLRQ VWUDWHJLHV RI WKRVH IOHHLQJ YDULRXV GHELOLWDWLQJ HFRQRPLF DQG
    HQYLURQPHQWDO FRQVWUDLQWV DW WKHLU SODFH RI RULJLQ ± ZKLFK LQ WKH FDVH RI UXUDO
    %XUPDDUHIUHTXHQWO\XQGHUSLQQHGE\H[SORLWDWLYHDEXVH±\HWZKRPD\QRWILW
    QHDWO\ZLWKLQWKHFRQYHQWLRQDOUHIXJHHGHILQLWLRQ)XUWKHUPRUHWKHVHSURWHFWLRQ
    FRQFHUQVDUHOLNHO\EURDGHUWKDQWKHQDUURZSURYLVLRQRIOHJDOSURWHFWLRQDJDLQVW
    UHIRXOHPHQWJUDQWHGWRRIILFLDOO\UHFRJQLVHGUHIXJHHV
    
    $ORQJWKHVHOLQHVVWDIIRI81+&5QRWHGLQWKDW³DQLQFUHDVLQJQXPEHURI
    LUUHJXODUPLJUDQWVKDYHSURWHFWLRQQHHGVUHVXOWLQJIURPFRQGLWLRQVLQWKHFRXQWU\
    RI RULJLQ XQUHODWHG WR >DUPHG@ FRQIOLFW RU SROLWLFDO SHUVHFXWLRQ´'HVSLWHVXFK
    DFNQRZOHGJHPHQWV LQWHUQDWLRQDO IUDPHZRUNV IRU FODVVLI\LQJ DQG DVVLVWLQJ WKH
    GLYHUVHUDQJHRISHRSOHOHDYLQJWKHLUFRXQWU\RIRULJLQFRQWLQXHWRKLQGHUDPRUH
    DFFXUDWHXQGHUVWDQGLQJRIWKHSURWHFWLRQFRQFHUQVDQGVHOILQLWLDWHGSURWHFWLRQ
    VWUDWHJLHV RI WKHVH LQGLYLGXDOV  7KXV DOWKRXJK WKHUH KDV EHHQ VRPH
    UHFRJQLWLRQ RI WKH DEXVH IUHTXHQWO\ XQGHUO\LQJ µHFRQRPLF¶ PLJUDWLRQ RXW RI
    
    
     $ %HWWV ³7RZDUGV D µVRIW ODZ¶ IUDPHZRUN IRU WKH SURWHFWLRQ RI YXOQHUDEOH PLJUDQWV´
    81+&5S

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    %XUPD WKHUH KDV EHHQ OLWWOH HIIRUW WR FKDOOHQJH FRQYHQWLRQDO SURWHFWLRQ
    IUDPHZRUNV DQG DGDSW SURWHFWLRQ DVVLVWDQFH DFFRUGLQJ WR WKH FRQFHUQV DQG
    GHVLUHVRIPLJUDQWVWKHPVHOYHV7KHLVVXHRIFODVVLILFDWLRQDQGLWVUHODWLRQVKLS
    WRH[WHUQDOSURWHFWLRQDVVLVWDQFHLVDGGUHVVHGLQWKHIROORZLQJFKDSWHU

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    ,QWHUQDWLRQDOIUDPHZRUNV
    
    2QHRIWKHPDMRUTXHVWLRQVDVNHGE\WKLVUHSRUWLVZKHWKHUH[LVWLQJLQWHUQDWLRQDO
    KXPDQ ULJKWV ODZV IUDPHZRUNV DQG QRUPV DFFXUDWHO\ UHIOHFW WKH FDXVHV RI
    HPLJUDWLRQ IURP %XUPD  $IWHU H[DPLQLQJ WKRVH ODZV DQG QRUPV LW EHFRPHV
    FOHDU WKDW WKH DQVZHU LV D GHILQLWLYH QR  $V KDV EHHQ GLVFXVVHG LQ HDUOLHU
    FKDSWHUV UDWKHU WKDQ WKHUH EHLQJ D VLQJOH UHDVRQ IRU ZK\ SHRSOH GHFLGH WR
    OHDYH WKHLU KRPHV LQ %XUPD LW LV LQVWHDG HYLGHQW WKDW SHRSOH EDVH WKHLU
    GHFLVLRQV WR HPLJUDWH RQ PDQ\ GLIIHUHQW IDFWRUV LQFOXGLQJ 63'& DEXVHV
    HQYLURQPHQWDOO\EDVHG FURS IDLOXUH DQG VFDUFLW\ RI HPSOR\PHQW  %XW FXUUHQW
    LQWHUQDWLRQDO OHJDO UHJLPHV DQG QRUPV DWWHPSW WR SODFH %XUPHVH SHRSOH ZKR
    OHDYH WKHLU KRPHV LQWR RQH RI WKUHH QDUURZ RIWHQ ULJLGO\GHILQHG FDWHJRULHV
    UHIXJHHV LQWHUQDOO\ GLVSODFHG SHUVRQV RU HFRQRPLF PLJUDQWV  7KH ILQGLQJV RI
    .+5*¶VLQWHUYLHZVZLWKUHVLGHQWVRI.DUHQ6WDWHDQG%XUPHVHFLWL]HQVZRUNLQJ
    LQ7KDLODQGVWURQJO\VXJJHVWWKDWWKHVHFDWHJRULHVGRQRWDFFXUDWHO\UHIOHFWWKH
    FRPSOH[VHWRIPRWLYDWLRQVWKDWOHDG%XUPHVHFLYLOLDQVWROHDYHWKHLUKRPHVQRU
    GR WKH\ VDWLVIDFWRULO\ SURYLGH SURWHFWLRQ IRU WKRVH DW ULVN ERWK LQ %XUPD DQG
    DEURDG   &KDUW  EHORZ SURYLGHV D KROLVWLF GHSLFWLRQ RI WKHIDFWRUVXQGHUO\LQJ
    HPLJUDWLRQIURPKRPHDUHDVLQ%XUPDWRHPSOR\PHQWRSSRUWXQLWLHVHOVHZKHUH
    
    &KDUW $KROLVWLFXQGHUVWDQGLQJRIIRUFHGPLJUDWLRQWRZDUGVHPSOR\PHQWRSSRUWXQLWLHVZLWKLQDQG
    RXWRI%XUPD

    7DUJHWGHVWLQDWLRQ

    
    
    7KH GLIILFXOW\ RI DFFXUDWHO\ GLVWLQJXLVKLQJ EHWZHHQ UHIXJHHV ,'3V DQG
    HFRQRPLFPLJUDQWVVWHPVIURPWKHIDFWWKDWZKHQLWFRPHVWRWKHVSHFLILFFDVH
    RI %XUPD WKH SROLWLFDO DQG WKH HFRQRPLF W\SLFDOO\ FDQQRW EH VHSDUDWHG  7KH
    DXWKRULWDULDQQDWXUHRIWKH63'&PHDQVWKDWDOODVSHFWVRIFLYLOLDQOLIHLQ%XUPD
    DUH LQIOXHQFHG PRVW RIWHQ QHJDWLYHO\  E\ WKH UHJLPH¶V SROLFLHV  $V KDV EHHQ
    GHPRQVWUDWHGE\WKHGDWDFROOHFWHGIURP.+5*LQWHUYLHZVRVWHQVLYHHFRQRPLF
    UHDVRQV IRU HPLJUDWLRQ VXFK DV XQHPSOR\PHQW RU FURS IDLOXUH RIWHQ ILQG WKHLU
    URRWVLQKLJKO\SROLWLFDOH[SORLWDWLYH63'&SROLFLHVVXFKDVIRUFHGODERXUFURS
    TXRWDVDQGH[WRUWLRQ$FFRUGLQJWRDVWXG\RILQWHUQDWLRQDOOHJDOGHILQLWLRQVDQG
    WKHLUDSSOLFDWLRQWR%XUPHVHPLJUDQWV³UHFHQWHVWLPDWHVLQGLFDWHWKDWXSWRWZR
    PLOOLRQ SHRSOH IURP %XUPD FXUUHQWO\ UHVLGH LQ 7KDLODQG UHIOHFWLQJ RQH RI WKH

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ODUJHVWPLJUDWLRQIORZVLQ6RXWKHDVW$VLD0DQ\IDFWRUVFRQWULEXWHWRWKLVPDVV
    H[RGXV EXW WKH YDVW PDMRULW\ RI SHRSOH OHDYLQJ %XUPD DUH FOHDUO\ IOHHLQJ
    SHUVHFXWLRQ IHDU DQG KXPDQ ULJKWV DEXVHV´  7KLV XQGHUVWDQGLQJ ZDV
    UHSHDWHGO\FRQILUPHGE\PLJUDQWVWKHPVHOYHVGXULQJLQWHUYLHZVZLWK.+5*
    
    ³, XVHG WR IDUP DQG >ZRUN RQ D SODQWDWLRQ@  ,I WKHUH ZHUH KHDY\ UDLQV
    GXULQJWKHUDLQ\VHDVRQRXUSDGG\SODQWVGLHGDQGZHFRXOGQ¶WKDUYHVWD
    ORWRIULFH6RZKHQWKHJRYHUQPHQWWD[HGXVZHFRXOGQ¶WSD\WKHWD[HV
    :HQRORQJHUKDYHDIDUPEHFDXVHLWZDVWDNHQE\WKHJRYHUQPHQW±DW
    WKDWWLPH,ZDVYHU\VPDOO0\SDUHQWVFRXOGQ¶WHDUQDOLYLQJYHU\ZHOO
    DIWHU WKH JRYHUQPHQW WRRN RXU IDUP  1RZ >P\ IDPLO\@ FDQ¶W OLYH LQ WKH
    VDPH SODFH ZH DUH VWD\LQJ LQ GLIIHUHQW SODFHV  , FDPH WR OLYH LQ
    7KDLODQG´
    .R0 PDOH 7KYLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    7KHUHDUHWKUHHH[LVWLQJOHJDOFDWHJRULHVLQWRZKLFK%XUPHVHSHRSOHZKROHDYH
    WKHLU KRPHV DUH SODFHG ± UHIXJHHV ,'3V RU HFRQRPLF PLJUDQWV  )RU HDFK
    FDWHJRU\ WKLV FKDSWHU ZLOO H[DPLQH WKH FXUUHQW OHJDO RU QRUPDWLYH SURWHFWLRQV
    DIIRUGHGDQGKRZWKHGHILQLWLRQVXVHGE\WKRVHFDWHJRULHVGRQRWVDWLVIDFWRULO\
    UHIOHFWWKHUHDVRQVIRUZK\SHRSOHHPLJUDWHIURP%XUPD,WZLOOEHFRPHFOHDU
    WKDW UHJDUGOHVV RI WKH H[DFW FDXVHV IRU OHDYLQJ EDVLF VXUYLYDO LV D NH\
    PRWLYDWLRQIRUPDQ\SHRSOH±DIDFWWKDWWKHVHOHJDOGHILQLWLRQVIDLOWRHIIHFWLYHO\
    DGGUHVV
    
    ,W LV LPSRUWDQW WR HPSKDVLVH WKDW H[DPLQLQJ WKH FXUUHQW OHJDO DQG QRUPDWLYH
    GHILQLWLRQV IRU WKHVH FDWHJRULHV LV QRW DQ DEVWUDFW RU DFDGHPLF H[HUFLVH
    ,QVWHDG WKHUH DUH YHU\ UHDO FRQFUHWH LPSOLFDWLRQV IRU WKH GHILQLWLRQV RI WKHVH
    ODZV DV WKH\ GHWHUPLQH KRZ LQWHUQDWLRQDO ERGLHV DQG KRVW JRYHUQPHQWV
    XQGHUVWDQGWKHSURWHFWLRQQHHGVRIWKHVHJURXSVHVWDEOLVKUHVSRQVLELOLW\IRUWKH
    GHOLYHU\ RI SURWHFWLRQ DQG RWKHU DVVLVWDQFH DQG WKHQ GHWHUPLQH WKH DPRXQW RI
    KXPDQLWDULDQDLGWKDWVKRXOGEHGLVWULEXWHG+HQFHH[WHUQDOHIIRUWVWRSURYLGH
    SURWHFWLRQDQGRWKHUDVVLVWDQFHWRSHRSOHIOHHLQJ63'&VSRQVRUHGDEXVHVDUH
    KHDYLO\ UHVWULFWHG E\ WKH GHILQLWLRQV RI UHIXJHHV ,'3V DQG HFRQRPLF PLJUDQWV
    DGRSWHGE\WKHLQWHUQDWLRQDOFRPPXQLW\DQGLQGLYLGXDOJRYHUQPHQWV
    
    (FRQRPLF0LJUDQWV
    
    2I WKHVH WKUHH FDWHJRULHV SHRSOH ZKR DUH UHIHUUHG WR DV µHFRQRPLF PLJUDQWV¶
    DUHE\IDUWKHPRVWSRRUO\GHILQHGOHDVWSURWHFWHGJURXS,QGHHGIRUVHYHUDO
    GHFDGHVQRZOHJDOWKLQNHUVDQGSROLF\PDNHUVDOLNHKDYHVWUXJJOHGWRFUHDWHD
    VDWLVIDFWRU\ GHILQLWLRQ RI ZKDW FRQVWLWXWHV DQ HFRQRPLF PLJUDQW  7KHUH DUH
    VHYHUDOUHDVRQVIRUWKLVIDLOXUH*LYHQWKHFHQWUDOLW\RIWKHZRUNFRQGXFWHGE\
    PLJUDQWV WR WKH HFRQRPLHV RI UHFHLYLQJ FRXQWULHV DURXQG WKH ZRUOG PDQ\
    
    
    7&DRXHWWHDQG03DFN3XVKLQJ3DVWWKH'HILQLWLRQV0LJUDWLRQVIURP%XUPDWR7KDLODQG
    5HIXJHHV,QWHUQDWLRQDO 2SHQ6RFLHW\,QVWLWXWH

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    JRYHUQPHQWVDUHXQZLOOLQJWRHIIHFWLYHO\DGGUHVVWKHLVVXHEHFDXVHWKH\EHOLHYH
    LW ZRXOG MHRSDUGLVH DQ LPSRUWDQW DQG LQH[SHQVLYH FRPSRQHQW RI WKHLU
    HFRQRPLHV  +HQFH SROLWLFDO DQG HFRQRPLF LQWHUHVWV KDYH EHHQ IRXQG WR
    RXWZHLJK WKH LPSRUWDQFH RI SURYLGLQJ EHWWHU SURWHFWLRQ IRU PLJUDQWV  $QRWKHU
    LPSHGLPHQWWRGHILQLQJHFRQRPLFPLJUDQWVLVWKDWLWZRXOGUHTXLUHSROLF\PDNHUV
    DQGJRYHUQPHQWVDOLNHWRDFNQRZOHGJHWKDWHFRQRPLFDQGSROLWLFDOPRWLYDWLRQV
    IRU LPPLJUDWLRQ DUH RIWHQ LQVHSDUDEOH DV KDV EHHQ PDGH FOHDU LQ WKH FDVH RI
    %XUPD
    
    7KHGLIILFXOW\RIFUHDWLQJDQHIIHFWLYHGHILQLWLRQRIHFRQRPLFPLJUDQWVEHFRPHV
    HYLGHQWZKHQRQHLQVSHFWVWKHJORVVDU\HQWU\IRUµHFRQRPLFPLJUDQWV¶SURYLGHG
    E\ WKH 8QLWHG 1DWLRQV (GXFDWLRQDO 6FLHQWLILF DQG &XOWXUDO 2UJDQL]DWLRQ
    81(6&2   5DWKHU WKDQ FRQWDLQLQJ D VLQJOH GHILQLWLRQ WKH JORVVDU\ LQVWHDG
    LQFOXGHVVHYHUDOFRPSHWLQJDQGVRPHWLPHVFRQIOLFWLQJDWWHPSWVWRGHILQHWKLV
    JURXS2QHGHILQLWLRQGHVFULEHVHFRQRPLFPLJUDWLRQDVDSURFHVVWKDW³VKRXOG
    EH XQGHUVWRRG DV FRYHULQJ DOO FDVHV ZKHUH WKH GHFLVLRQ WR PLJUDWH LV WDNHQ
    IUHHO\ E\ WKH LQGLYLGXDO FRQFHUQHG IRU UHDVRQV RI µSHUVRQDO FRQYHQLHQFH¶ DQG
    ZLWKRXWLQWHUYHQWLRQRIDQH[WHUQDOFRPSHOOLQJIDFWRU´,WLVQRWGLIILFXOWWRVHH
    ZK\ WKLV GHILQLWLRQ LV XQVDWLVIDFWRU\ IRU WKH FDVH RI %XUPD  :KDW LVPHDQWE\
    VRPHRQHµIUHHO\¶GHFLGLQJWRPLJUDWH":KDWFRQVWLWXWHVµSHUVRQDOFRQYHQLHQFH¶
    DQGKRZVKRXOGWKDWEHGLVWLQJXLVKHGIURPWKRVHZKRDUHPLJUDWLQJLQRUGHUWR
    VLPSO\VXUYLYH"
    
    7KH 81(6&2 JORVVDU\ UHFRJQLVHV VXFK VKRUWFRPLQJV E\ JRLQJ RQ WR FLWH D
    GLIIHUHQW SRVVLEOH GHILQLWLRQ RQH JLYHQ E\ WKH 81 6SHFLDO 5DSSRUWHXU RI WKH
    &RPPLVVLRQRQ+XPDQ5LJKWV$FFRUGLQJWRWKH5DSSRUWHXUPLJUDQWVDUH
    
    D  3HUVRQVZKRDUHRXWVLGHWKHWHUULWRU\RIWKH6WDWHRIZKLFKWKH\DUH
    QDWLRQDOVRUFLWL]HQVDUHQRWVXEMHFWWRLWVOHJDOSURWHFWLRQDQGDUHLQWKH
    WHUULWRU\RIDQRWKHU6WDWH
    E  3HUVRQVZKRGRQRWHQMR\WKHJHQHUDOOHJDOUHFRJQLWLRQRIULJKWVZKLFKLV
    LQKHUHQWLQWKHJUDQWLQJE\WKHKRVW6WDWHRIWKHVWDWXVRIUHIXJHH
    QDWXUDOLVHGSHUVRQRURIVLPLODUVWDWXV
    F  3HUVRQVZKRGRQRWHQMR\HLWKHUJHQHUDOOHJDOSURWHFWLRQRIWKHLU
    IXQGDPHQWDOULJKWVE\YLUWXHRIGLSORPDWLFDJUHHPHQWVYLVDVRURWKHU
    DJUHHPHQWV
    
    7KH81(6&2JORVVDU\WKHQJRHVRQWRDGPLWWKDW
    
    ³7KLV EURDG GHILQLWLRQ RI PLJUDQWV UHIOHFWV WKH FXUUHQW GLIILFXOW\ LQ
    GLVWLQJXLVKLQJ EHWZHHQ PLJUDQWV ZKR OHDYH WKHLU FRXQWULHV EHFDXVH RI
    SROLWLFDO SHUVHFXWLRQ FRQIOLFWV HFRQRPLF SUREOHPV HQYLURQPHQWDO
    
    
     ³(FRQRPLF 0LJUDQW´ *ORVVDU\ 8QLWHG 1DWLRQV (GXFDWLRQDO 6FLHQWLILF DQG &XOWXUDO
    2UJDQL]DWLRQ ,QVWLWXWH IRU 6WDWLVWLFV  $FFHVVHG DW KWWSSRUWDOXQHVFRRUJVKVHQHYSKS
    85/B,'  85/B'2 '2B723,& 85/B6(&7,21 KWPORQ$SULOWK

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    GHJUDGDWLRQRUDFRPELQDWLRQRIWKHVHUHDVRQVDQGWKRVHZKRGRVRLQ
    VHDUFKRIFRQGLWLRQVRIVXUYLYDORUZHOOEHLQJWKDWGRHVQRWH[LVWLQWKHLU
    SODFHRIRULJLQ´
    
    ,QGHHG WKRXJK WKH  ,QWHUQDWLRQDO &RQYHQWLRQ RQ WKH 3URWHFWLRQ RI WKH
    5LJKWV RI $OO 0LJUDQW :RUNHUV DQG 0HPEHUV RI 7KHLU )DPLOLHV ZDV FUHDWHG LQ
    RUGHUWROHJDOO\SURWHFWHFRQRPLFPLJUDQWVWKDWGRFXPHQWDOVRQRWRQO\IDLOVWR
    VDWLVIDFWRULO\GHILQHZKDWDPLJUDQWLVEXWLVDOVRDIXQFWLRQDOO\LQHUWGRFXPHQW
    WKDW KDV H[LVWHG IRU QHDUO\  \HDUV DQG\HWKDVIHZHUWKDQFRXQWULHVZKR
    KDYHEHFRPHVLJQDWRULHV
    
    0HPEHUV RI WKH 81 WKHPVHOYHV KDYH DFNQRZOHGJHG WKLV IDLOXUH RI WKH 
    &RQYHQWLRQDQGLQRQHDUWLFOHKDYHZULWWHQWKDW³DWWKHLQWHUQDWLRQDOOHYHOWKHUH
    LV QR FOHDUO\ GHILQHG LQVWLWXWLRQDO IUDPHZRUN IRU WKH SURWHFWLRQ RI YXOQHUDEOH
    LUUHJXODU PLJUDQWV´  $GPLWWHGO\ PLJUDWLRQ LV D WHUP WKDW HQFRPSDVVHV DQ
    H[WUHPHO\ GLYHUVH UDQJH RI SHRSOH  ,W LV DQ LVVXH WKDW IRU PDQ\ FRXQWULHV LV
    IUDXJKWZLWKP\ULDGSROLWLFDODQGHFRQRPLFLPSOLFDWLRQV±DIDFWWKDWKDVVHHPHG
    WRLQKLELWERWKJRYHUQPHQWVDQGLQWHUQDWLRQDOERGLHVIURPUREXVWO\DGGUHVVLQJLW
    5HJDUGOHVV WKH IDFW UHPDLQV WKDW WKH LQWHUQDWLRQDO FRPPXQLW\¶V IDLOXUH WR VHW
    SURSHU OHJDO SDUDPHWHUV IRU WKLV LVVXH OHDYHV PLOOLRQV RI SHRSOH DURXQG WKH
    ZRUOG ± DQG VSHFLILFDOO\ PLOOLRQV RI PLJUDQWV IURP %XUPD ± ZLWKRXW WKH ODZV
    DQG QRUPV WKDW DUH QHFHVVDU\ WR SURWHFW WKHP IURP DEXVH DQG HQVXUH WKHP
    WKHLUEDVLFKXPDQULJKWV
    
    $QRWKHU LVVXH WKDW KDV FRQWULEXWHG WR WKLV OHJDO VWDOHPDWH LV WKH SUREOHP RI
    GHOLQHDWLQJ EHWZHHQ YROXQWDU\ DQG LQYROXQWDU\ PLJUDWLRQ  $V KDV EHHQ
    GLVFXVVHGLQHDUOLHUFKDSWHUVPDQ\SHRSOHFRQWLQXHWRDVVXPHWKDWHFRQRPLF
    PLJUDWLRQ LV D FKRLFH WKDW LV IUHHO\ PDGH E\ WKH PLJUDQW  :KLOH WKDW PLJKW EH
    WUXH LQ VRPH FRXQWULHV WKH ILQGLQJV RI .+5*¶V LQWHUYLHZV ZLWK %XUPHVH
    PLJUDQWV PDNHV LW FOHDU WKDW WKH GHFLVLRQ WR PLJUDWH IURP %XUPD RIWHQ LVQ¶W
    VROHO\PDGHRXWRIDGHVLUHWRILQGEHWWHUILQDQFLDOVHFXULW\IRURQH¶VVHOIDQGKLV
    IDPLO\EXWLVRIWHQPDGHEHFDXVHLWLVWKHRQO\ZD\WKDWWKDWSHUVRQRUIDPLO\
    FDQVXUYLYH,QGHHGWKLVLVVXHRIVXUYLYDOLQIRUPVWKHIROORZLQJGLVFXVVLRQVRI
    WKHOHJDOGHILQLWLRQVRIUHIXJHHVDQG,'3V
    
    
    
    ,ELG
    
    7KHGHILQLWLRQRIPLJUDQWVJLYHQE\WKH0LJUDQW&RQYHQWLRQLVHTXDOO\XQVDWLVIDFWRU\³7KH
    WHUPµPLJUDQWZRUNHU¶UHIHUVWRDSHUVRQZKRLVWREHHQJDJHGLVHQJDJHGRUKDVEHHQHQJDJHG
    LQ D UHPXQHUDWHG DFWLYLW\ LQ D 6WDWH RI ZKLFK KH RU VKH LV QRW D QDWLRQDO´ ,QWHUQDWLRQDO
    &RQYHQWLRQ RQ WKH 3URWHFWLRQ RI WKH 5LJKWV RI $OO 0LJUDQW :RUNHUV DQG 0HPEHUV RI 7KHLU
    )DPLOLHV$UWLFOH6HFWLRQ
    
     $ %HWWV ³7RZDUGV D µVRIW ODZ¶ IUDPHZRUN IRU WKH SURWHFWLRQ RI YXOQHUDEOH PLJUDQWV´
    5HVHDUFK3DSHU1R1HZ,VVXHVLQ5HIXJHH5HVHDUFK3ROLF\'HYHORSPHQWDQG(YDOXDWLRQ
    6HUYLFH8QLWHG1DWLRQV+LJK&RPPLVVLRQHUIRU5HIXJHHV$XJXVW$QµLUUHJXODUPLJUDQW¶
    LVDWHUPXVHGIRUPLJUDQWVZKRDUHSHUIRUPLQJZRUNLOOHJDOO\LQDFRXQWU\ZKHUHWKH\DUHQRW
    FLWL]HQV

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    5HIXJHHV
    
    ,Q VWDUN FRQWUDVW WR WKH FDVH RI HFRQRPLF PLJUDQWV WKH LQWHUQDWLRQDO OHJDO
    SURWHFWLRQDIIRUGHGWRUHIXJHHVLVE\IDUWKHPRVWUREXVWRIWKHWKUHHODZVDQG
    IUDPHZRUNVH[DPLQHGLQWKLVFKDSWHU7KHVWUHQJWKRIWKLVSURWHFWLRQGHULYHVLQ
    ODUJHSDUWIURPDORQJHVWDEOLVKHGLQWHUQDWLRQDOFRQVHQVXVWKDWVKHOWHUPXVWEH
    JLYHQWRSHRSOHZKRGXHWRSROLWLFDODQGVRFLDOSHUVHFXWLRQDUHIRUFHGWROHDYH
    WKHLU KRPH FRXQWULHV  7KH &RQYHQWLRQ UHODWLQJ WR WKH 6WDWXV RI 5HIXJHHV
    DGRSWHGLQDQGH[SDQGHGLQGHILQHVDUHIXJHHDVRQHZKR
    
    ³>2@ZLQJWRDZHOOIRXQGHGIHDURIEHLQJSHUVHFXWHGIRUUHDVRQVRIUDFH
    UHOLJLRQ QDWLRQDOLW\ PHPEHUVKLS RI D SDUWLFXODU VRFLDO JURXS RU SROLWLFDO
    RSLQLRQLVRXWVLGHWKHFRXQWU\RIKLVQDWLRQDOLW\DQGLVXQDEOHRURZLQJ
    WRVXFKIHDUXQZLOOLQJWRDYDLOKLPVHOIRIWKHSURWHFWLRQRIWKDWFRXQWU\RU
    ZKRQRWKDYLQJDQDWLRQDOLW\DQGEHLQJRXWVLGHWKHFRXQWU\RIKLVIRUPHU
    KDELWXDOUHVLGHQFHDVDUHVXOWRIVXFKHYHQWVLVXQDEOHRURZLQJWRVXFK
    IHDUXQZLOOLQJWRUHWXUQWRLW´
    
    2YHU  FRXQWULHV KDYH UDWLILHG WKLV &RQYHQWLRQ DQG WKRVH ZKR DUH
    VXFFHVVIXOO\UHFRJQLVHGDVUHIXJHHVDUHSURYLGHGWKHSURWHFWLRQRILQWHUQDWLRQDO
    ODZDQGRWKHUDVVLVWDQFHE\WKH81DQGDPDMRULW\RILQWHUQDWLRQDOERGLHVDQG
    QDWLRQDOJRYHUQPHQWV$VSDUWRIWKHOHJDOSURWHFWLRQDIIRUGHGWRWKRVHPHHWLQJ
    WKHUHTXLUHPHQWVLQWKHDERYHGHILQLWLRQWKH&RQYHQWLRQLQFOXGHVWKHSULQFLSOH
    RIQRQUHIRXOHPHQWZKLFKSURKLELWVDUHFHLYLQJFRXQWU\IURPIRUFLEO\UHSDWULDWLQJ
    D UHIXJHH ZKHQ WKDW UHIXJHH KDV YDOLG IHDUV RI EHLQJ SHUVHFXWHG LI KH LV
    UHWXUQHGKRPH
    
    ,QGHHG WKH 63'&¶V PLOLWDU\ RIIHQVLYHV DQG FDPSDLJQV RI UHSUHVVLRQ LQ .DUHQ
    6WDWHDQGRWKHUUHJLRQVRI%XUPDKDYHFUHDWHGUHIXJHHVZKRILWZHOOZLWKLQWKH
    &RQYHQWLRQ¶V GHILQLWLRQ  7KHUH DUH DSSUR[LPDWHO\  %XUPHVH ZKR
    FXUUHQWO\ UHVLGH LQ 7KDLODQGEDVHG UHIXJHH FDPSV DQG UHFHLYH VRPH IRUP RI
    KRVWJRYHUQPHQWDVVLVWDQFHRULQWHUQDWLRQDODLGDQGWKRXVDQGVPRUHZKRKDYH
    UHORFDWHGWR7KLUG&RXQWULHV
    
    %XWIRUDFRXQWU\RIQHDUO\PLOOLRQSHRSOHZKROLYHXQGHU63'&RSSUHVVLRQ
    WKHUH DUH QRW RQO\ PRUH UHIXJHHV WKDQ DUH FXUUHQWO\ UHFRJQLVHG EXW DOVR
    PLOOLRQV RI %XUPHVH ZKR KDYH EHHQ ODEHOOHG µHFRQRPLF PLJUDQWV¶ EXW KDYH LQ
    IDFW IOHG WKH FRXQWU\ LQ RUGHU WR VXUYLYH  7KH LQWHUYLHZV FRQGXFWHG E\ .+5*
    ERWKZLWKLQ.DUHQ6WDWHDQGLQ7KDLODQGLQGLFDWHWKDWPDQ\%XUPHVHKDYHOHIW
    WKHLU KRPHV QRW EHFDXVH WKH\ ZHUH VSHFLILFDOO\ WDUJHWHG IRU SROLWLFDO RU VRFLDO

    
    
      &RQYHQWLRQ 5HODWLQJ WR WKH 6WDWXV RI 5HIXJHHV &KDSWHU  $UWLFOH   $FFHVVHG DW
    KWWSZZZXQKFKUFKKWPOPHQXERBFBUHIKWPRQ$SULOWK
    
    ³%XUPHVHERUGHUUHIXJHHVLWHVZLWKSRSXODWLRQILJXUHV´7KDLODQG%XUPD%RUGHU&RQVRUWLXP
    0DUFK   $FFHVVHG DW KWWSZZZWEEFRUJFDPSVPDUPDSWEEFXQKFUSGI RQ
    $SULOWK

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    SHUVHFXWLRQ EXW EHFDXVH WKH\ OLYHG LQ D VWDWH RI OLIHWKUHDWHQLQJ SRYHUW\ WKDW
    ZDVODUJHO\FUHDWHGE\H[SORLWDWLYH63'&SROLFLHV
    
    ³:H KDYH WR SD\ WD[HV ZKHQHYHU WKH DXWKRULWLHV GHPDQG WKHP  7KH\
    GHPDQGHG  N\DW IURP HDFK KRXVH  6RPHWLPHV WKH\
    GHPDQGHGVXFKWD[HVIRXURUILYHWLPHVDPRQWK0DQ\YLOODJHUVFRXOG
    QRWDIIRUGWKHWD[HVDQGWKH\OHIWWKHYLOODJHWRFRPHWRZRUNLQ7KDLODQG´
    .R7K PDOH .YLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH )HE 
    
    $JDLQ WKH LVVXH DW VWDNH LV VXUYLYDO  $V -RHO 5 &KDUQ\ 9LFH 3UHVLGHQW IRU
    3ROLF\ RI 5HIXJHHV ,QWHUQDWLRQDO KDV ZULWWHQ ³IRU PDQ\ WKH GHFLVLRQ WR OHDYH
    WKHLUKRPHFRXQWU\LVQRWDERXWWKHGUHDPRIILQGLQJDEHWWHUOLIHHOVHZKHUHDV
    LPSOLHG LQ WKH ODEHO RI HFRQRPLF PLJUDQW  5DWKHU WKH PRWLYDWLRQ IRU IOLJKW LV
    LQGHHGVXUYLYDO)RUWKLVYHU\UHDVRQLQPDQ\VLWXDWLRQVLWLVLPSRVVLEOHWRGUDZ
    DFOHDUOLQHEHWZHHQUHIXJHHVDQGHFRQRPLFPLJUDQWV´
    
    7UDGLWLRQDOO\ LQWHUQDWLRQDO ODZV OLNH WKH &RQYHQWLRQ UHODWLQJ WR WKH 6WDWXV RI
    5HIXJHHV DUH LQWHQGHG WR SURWHFW WKRVH SHRSOH ZKRVH LPPHGLDWH SK\VLFDO
    SV\FKRORJLFDO DQG VRFLDO ZHOOEHLQJ LV WKUHDWHQHG DW KRPH  %XW DV WKH DERYH
    GLVFXVVHG .+5* LQWHUYLHZV KDYH GHPRQVWUDWHG WKHUH DUH PDQ\SHRSOHOLYLQJ
    DV GLVSODFHG SHUVRQV LQ %XUPD RU DV PLJUDQWV DEURDG ZKR OHIW WKHLU KRPHV
    EHFDXVHH[SORLWDWLYH63'&SROLFLHVPDGHEDVLFOLYHOLKRRGSXUVXLWVLPSRVVLEOH
    7RUHPDLQDWKRPHLQDQ63'&FRQWUROOHGGLVWULFWRI.DUHQ6WDWHRUHOVHZKHUH
    LQ UXUDO %XUPD LV WR ORVH VWDEOH DFFHVV WR HPSOR\PHQW RSSRUWXQLWLHV SROLWLFDO
    DQGVRFLDOIUHHGRPVDQGRWKHUEDVLFKXPDQULJKWV
    
    ,QGHHG VHYHUDO ZULWHUV KDYH H[SODLQHG KRZ GLIILFXOW LW FDQ EH WR GLVWLQJXLVK
    EHWZHHQ HFRQRPLF PLJUDQWV DQG UHIXJHHV  (OL]DEHWK )HUULV SRLQWV RXW WKDW
    ³>W@KHUHLVHYLGHQFHWKDWSHRSOHIOHHLQJYLROHQFHXVHWKHVDPHPLJUDWRU\URXWHV
    DVWKRVHWUDYHOLQJIRUPDLQO\HFRQRPLFUHDVRQV´&KDUQ\ZULWHVWKDW³>D@V\OXP
    VHHNHUVWKDWDUHSDUWRIPL[HGIORZVSUHVHQWFKDOOHQJHVWRWKH2IILFHRIWKH81
    +LJK &RPPLVVLRQHU IRU 5HIXJHHV 81+&5  DQG QRQJRYHUQPHQWDO
    RUJDQL]DWLRQV WKDW PD\ ZLVK WR DVVLVW WKHP  $V 81+&5 LWVHOI SRLQWV RXW
    DV\OXPVHHNHUVRIWHQKDYHQRFKRLFHEXWWRXVHWKHVDPHLOOHJDOPHDQVRIHQWU\
    DVHFRQRPLFPLJUDQWV´
    
    6HYHUDO TXHVWLRQV DULVH IRU SROLF\PDNHUV QDWLRQDO JRYHUQPHQWV DQG
    LQWHUQDWLRQDO ERGLHV :KDW GRHV LW PHDQ WR KDYH RQH¶V VXUYLYDO WKUHDWHQHG"
    
    
     -  &KDUQ\ ³)OLJKW IRU 6XUYLYDO 7KH &KDOOHQJH RI 5HIXJHH 3URWHFWLRQ $PLG /DUJH6FDOH
    0LJUDWLRQ´ +DUYDUG ,QWHUQDWLRQDO 5HYLHZ 2QOLQH )HEUXDU\   $FFHVVHG DW
    KWWSZZZKDUYDUGLURUJLQGH[SKS"SDJH DUWLFOH LG RQ$SULOWK
    
    ()HUULV³,QWHUQDO'LVSODFHPHQW+XPDQ5LJKWVDQG'LVSODFHPHQW´6SHHFKJLYHQWR&OXE
    2I0DGULG$XJXVWWKWK6DQWDQGHU6SDLQS
    
     -  &KDUQ\ ³)OLJKW IRU 6XUYLYDO 7KH &KDOOHQJH RI 5HIXJHH 3URWHFWLRQ $PLG /DUJH6FDOH
    0LJUDWLRQ´ +DUYDUG ,QWHUQDWLRQDO 5HYLHZ 2QOLQH )HEUXDU\   $FFHVVHG DW
    KWWSZZZKDUYDUGLURUJLQGH[SKS"SDJH DUWLFOH LG RQ$SULOWK

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    6KRXOG WKHUH EH VHSDUDWH ODZV IRU WKRVH ZKR DUH IDFLQJ LPPHGLDWH SK\VLFDO
    WKUHDWV DV RSSRVHG WR WKRVH ZKR DUH WKUHDWHQHG RYHU D ORQJHU SHULRG E\ WKH
    V\VWHPDWLF GHJUDGDWLRQ RI WKHLU KXPDQ ULJKWV"  ,Q WKH FDVH RI WUDGLWLRQDOO\
    GHILQHGUHIXJHHVQDWLRQDOJRYHUQPHQWVDQG81+&5DUHOHIWWRGHWHUPLQHZKR
    LV D UHIXJHH  %XWLVWKHUHSHUKDSVDVHSDUDWHERG\WKDWVKRXOGEHFUHDWHGLQ
    RUGHU WR LGHQWLI\ SHRSOH OLNH %XUPHVH PLJUDQWV SHRSOH ZKR FDQ QR ORQJHU
    DFFHVVIXQGDPHQWDOVDIHWLHVDQGULJKWVLQWKHLUKRPHFRXQWU\\HWPD\QRWILWWKH
    FRQYHQWLRQDOUHIXJHHFULWHULD"
    
    )LQDOO\ HYHQ ZKHQ UHIXJHHV DUH DEOH WR UHDFK FDPSV LQ 7KDLODQG DQG RWKHU
    FRXQWULHVWKH\VWLOOPXVWPDNHVHYHUDOLPSRUWDQWGHFLVLRQV)RUH[DPSOHZLOO
    WKH\FKRRVHWRSLQWKHLUZHOIDUHDQGLQFRPHWRWKHSROLFLHVRIFDPSDXWKRULWLHV
    RU ZLOO WKH\ GHVLJQDWH VRPH PHPEHUV RI WKH IDPLO\ WR VWD\ LQ WKH FDPS ZKLOH
    RWKHUIDPLO\PHPEHUVJRHOVHZKHUHWRILQGZRUN",QJH%UHHVH[SODLQVWKDW³WKH
    PDOHPHPEHUVRIWKHIDPLO\RIWHQWHPSRUDULO\RUSHUPDQHQWO\OHDYHWKHFDPSLQ
    VHDUFKRIZRUNOHDGLQJWRLQWHUQDOUHPLWWDQFHVIURPXUEDQRUUXUDO7KDLDUHDVWR
    FDPS  ,Q VRPH IDPLOLHV ERWK SDUHQWV ZRUN RXWVLGH WKH FDPS OHDYLQJ WKH
    FKLOGUHQ ZLWK WKH JUDQGSDUHQWV  7KLV IDPLO\VSOLWWLQJ WHFKQLTXH LV WKH PRVW
    HIILFLHQWULVNGLYHUVLILFDWLRQVWUDWHJ\IRUGLVSODFHGSHRSOH´,WLVFOHDULQVXFK
    FDVHVWKDWDOOIDPLO\PHPEHUVOHIW%XUPDIRUWKHVDPHUHDVRQVEXWZKLOHWKRVH
    IDPLO\PHPEHUVUHVLGLQJLQWKHFDPSZRXOGQRUPDOO\EHFODVVHGUHIXJHHVWKH
    OLYLQJ FLUFXPVWDQFHV RI WKRVH IDPLO\ PHPEHUV ZRUNLQJ RXWVLGH RI FDPS DUH
    WKRVHWKDWDUHQRUPDOO\DVVRFLDWHGZLWKWKHWHUP
    HFRQRPLFPLJUDQW
    7KLVSRLQW
    DJDLQ GHPRQVWUDWHV WKH GLIILFXOW\ RI FUHDWLQJ D VWUDLJKWIRUZDUG GLVWLQFWLRQ
    EHWZHHQUHIXJHHVDQGHFRQRPLFPLJUDQWV
    
    ,QWHUQDOO\'LVSODFHG3HUVRQV
    
    7KHVWUHQJWKRIWKHFXUUHQWQRUPDWLYHUHJLPHIRUSURWHFWLQJLQWHUQDOO\GLVSODFHG
    SHUVRQV ,'3V OLHVHVVHQWLDOO\PLGZD\EHWZHHQWKDWIRUHFRQRPLFPLJUDQWVDQG
    WKDW IRU UHIXJHHV  :KLOH WKH ,'3 QRUPV DUH EHWWHU GHILQHG DQGUHFRJQLVHGE\
    PRUHSROLF\PDNHUVWKDQWKRVHIRUHFRQRPLFPLJUDQWVWKH\DOVRKDYHQRWEHHQ
    FRGLILHG DV LQWHUQDWLRQDO ODZ DQG VR DUH ZHDNHU WKDQ OHJDO SURWHFWLRQV IRU
    UHIXJHHV
    
    ,QGHHGRYHUWKHSDVWTXDUWHUFHQWXU\WKHUHKDVEHHQDJURZLQJDZDUHQHVVLQ
    WKH LQWHUQDWLRQDO FRPPXQLW\ WKDW PDQ\ RI WKH SHRSOH ZKR DUH IRUFHG WR OHDYH
    WKHLUKRPHVE\ZDUDQGKXPDQULJKWVDEXVHVGRQRWDFWXDOO\FURVVLQWHUQDWLRQDO
    ERXQGDULHV DQGWKXVEHFRPHUHIXJHHV EXWLQVWHDGVWD\ZLWKLQWKHFRQILQHVRI
    WKHLUKRPHVWDWHV6XFKLQWHUQDOO\GLVSODFHGSHUVRQV ,'3V KDYHEHHQIRUFHG
    WRFRQIURQWWKHKDUGVKLSVRIGLVSODFHPHQWZLWKRXWQHDUO\WKHVDPHOHYHORIOHJDO
    UHFRJQLWLRQDQGSURWHFWLRQDVLVSURYLGHGWRUHIXJHHV
    
    
    
     , %UHHV ³7RZDUGV VXVWDLQDEOH OLYHOLKRRGV 9RFDWLRQDO WUDLQLQJ DQG DFFHVV WR ZRUN RQ WKH
    7KDL%XUPHVHERUGHU´,VVXH3DSHU1XPEHU2QH=2$0D\S

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ,Q DQ HIIRUW WR UHPHG\ WKLV SURWHFWLRQ JDS FRXQWULHV KDYH EHJXQ WR RIILFLDOO\
    UHFRJQLVH WKH *XLGLQJ 3ULQFLSOHV RQ ,QWHUQDO 'LVSODFHPHQW D IUDPHZRUN
    FUHDWHGLQWKDWLVLQWHQGHGWRRXWOLQHWKHFDXVHVRILQWHUQDOGLVSODFHPHQW
    DQGWKHVSHFLDOSURWHFWLRQQHHGVRIWKHLQWHUQDOO\GLVSODFHG$FFRUGLQJWRWKH
    *XLGLQJ3ULQFLSOHV,'3VDUHGHILQHGDVEHLQJ
    
    ³>3@HUVRQVRUJURXSVRISHUVRQVZKRKDYHEHHQIRUFHGRUREOLJHGWRIOHH
    RU WR OHDYH WKHLU KRPHV RU SODFHV RI KDELWXDO UHVLGHQFH LQ SDUWLFXODU LQ
    RUGHU WR DYRLG WKH HIIHFWV RI DUPHG FRQIOLFW VLWXDWLRQV RI JHQHUDOL]HG
    YLROHQFHYLRODWLRQVRIKXPDQULJKWVRUQDWXUDORUKXPDQPDGHGLVDVWHUV
    DQGZKRKDYHQRWFURVVHGDQLQWHUQDWLRQDOO\UHFRJQL]HG6WDWHERUGHU´
    
    %XW QRWH WKDW WKLV GHILQLWLRQ VLPLODU WR WKDW ZKLFK LV XVHG E\ WKH 5HIXJHH
    &RQYHQWLRQSULRULWLVHVSHRSOHSHUFHLYHGWREHXQGHULPPHGLDWHSK\VLFDOWKUHDWV
    IURP ZDUIDUH ³VLWXDWLRQV RI JHQHUDOL]HG YLROHQFH´ KXPDQ ULJKWV DEXVHV DQG
    QDWXUDO RU KXPDQPDGH GLVDVWHUV  6XFK D GHILQLWLRQ DJDLQ IDLOV WR DFFXUDWHO\
    DGGUHVV WKH FRPSOH[ IDFWRUV WKDW OHDG PDQ\ WR OHDYH WKHLU KRPH WRZQV DQG
    DUHDVLQ%XUPD7KRXJKWKHUHDUHLQGHHG,'3VLQ%XUPDHVSHFLDOO\LQUHJLRQV
    OLNH QRUWKHUQ .DUHQ 6WDWH ZKR KDYH EHHQ GLVSODFHG E\ 63'& RIIHQVLYHV RU
    KDYHFKRVHQWROLYHLQKLGLQJWRDYRLGFRQIOLFWUHODWHG63'&DEXVHVWKHUHDUH
    PDQ\PRUHZKRKDYHFKRVHQWROHDYHWKHLUKRPHVEHFDXVHWKHLUVXUYLYDOZDV
    WKUHDWHQHG E\ D PRUH ORQJWHUP V\VWHPDWLF H[SORLWDWLRQ FRPPLWWHG E\ WKH
    63'&
    
    ³0RVW RI WKH \RXQJ SHRSOH >IURP WKH YLOODJH@ KDYH FRPH WR ZRUN LQ
    7KDLODQG,QWKHYLOODJH\RXFDQRQO\VHHROGPHQDQGZRPHQ2QO\D
    IHZ\RXQJSHRSOHDUHOHIWLQWKHYLOODJH7KHUHDUHVWLOOVRPHSHRSOHZKR
    ZDQW WR FRPH EXW WKHLU SDUHQWV KDYH VWRSSHG WKHP  )RU VRPH LW¶V
    EHFDXVH WKHUH DUH QR MREV DQG WKH\ DOVR KDYH WR ODERXU IRU WKH
    JRYHUQPHQWDQGJLYHWD[HVWRWKHJRYHUQPHQW´
    6DZ+W PDOH 7YLOODJH3D¶DQ'LVWULFW.DUHQ6WDWH )HE 
    
    ³$ ORW RI YLOODJHUV FDPH WR ZRUN LQ 7KDLODQG  (YHU\ RQH ZKR JURZV XS
    JRHVWR7KDLODQG,QRXUYLOODJHWKHUHDUHRQO\FKLOGUHQDQGROGSHRSOH
    <RXFDQ¶WILQGDQ\\RXWK0DQ\YLOODJHUVFDPHWR7KDLODQGEHFDXVHLQ
    RXU YLOODJH ZH FDQ¶W FRQGXFW RXU OLYHOLKRRG SURSHUO\ DQG WKH 63'&
    GHPDQGVDORWRIWD[HV$OPRVWHYHU\IDPLO\LQRXUYLOODJHKDVRQHIDPLO\
    PHPEHUZRUNLQJLQ7KDLODQG´
    .R: PDOH .YLOODJH'RRSOD\D'LVWULFW.DUHQ6WDWH -DQ 
    
    6RPH KDYH UHFRJQLVHG WKH EOXUUHG OLQH EHWZHHQ FRQIOLFW DQG HFRQRPLF ,'3V
    ZLWKLQ %XUPD DQG KDYH PDGH WKH FDVH IRU HFRQRPLF PLJUDQWV ZKR UHPDLQ
    ZLWKLQ %XUPD WR DOVR EH SURWHFWHG XQGHU WKH *XLGLQJ 3ULQFLSOHV RQ ,QWHUQDO
    
    
     *XLGLQJ 3ULQFLSOHV RQ ,QWHUQDO 'LVSODFHPHQW ,QWURGXFWLRQ $UW    $FFHVVHG DW
    KWWSZZZXQKFKUFKKWPOPHQXESULQFLSOHVKWPRQ$SULOWK

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    'LVSODFHPHQW  $FFRUGLQJ WR $QGUHZ %RVVRQ ³>S@HRSOH ZKR OHDYH KRPH LQ
    %XUPDDUHQRWVLPSO\SXOOHGE\WKHOXUHRIHFRQRPLFRSSRUWXQLW\EXWDUHIRUFHG
    RXWE\DFRPELQDWLRQRIFRHUFLYHDQGHFRQRPLFIDFWRUV´%RVVRQJRHVRQWR
    VD\WKDW³>R@QWKHTXHVWLRQRIZKRLVDIRUFHGDVRSSRVHGWRHFRQRPLFPLJUDQW
    LQ%XUPDPRVWUHOHYDQWUHSRUWVDQGVXUYH\VZHKDYHEHHQDEOHWRDFFHVVVWDWH
    HVVHQWLDOO\WKDWWKHPLJUDQWVOHIWKRPHHLWKHULQREHGLHQFHWRDGLUHFWUHORFDWLRQ
    RUGHU IURP WKH PLOLWDU\ RU FLYLO DXWKRULWLHV RU DV D UHVXOW RI D SURFHVV ZKHUHE\
    FRHUFLYH PHDVXUHV E\ WKH DXWKRULWLHV SOD\ D PDMRU UROH LQ IRUFLQJ GRZQ
    KRXVHKROGLQFRPHVWRWKHSRLQWZKHUHWKHIDPLO\FDQQRWVXUYLYH$WWKLVSRLQW
    OHDYLQJKRPHPD\EHWKHRQO\RSWLRQ´
    
    7KHUHDUHLQGHHGVHYHUDOFRQFHSWVLQFOXGHGLQWKH*XLGLQJ3ULQFLSOHV¶GHILQLWLRQ
    WKDW FRXOG EH XQGHUVWRRG WR FRYHU SHRSOH QR ORQJHU DEOH WR VXUYLYH LQ WKHLU
    KRPHDUHDVLQ%XUPD7KHGHILQLWLRQRI,'3VLQFOXGHVWKRVH³ZKRKDYHEHHQ
    IRUFHGRUREOLJHGWRIOHHRUWROHDYHWKHLUKRPHVLQRUGHUWRDYRLGWKHHIIHFWV
    RI YLRODWLRQV RI KXPDQ ULJKWV´  :KHUH YLRODWLRQV RI KXPDQ ULJKWV DUH
    XQGHUVWRRGDVSULPDULO\H[SORLWDWLYHLQFKDUDFWHUDQGWKHHIIHFWVRIVXFKDEXVH
    DV SRYHUW\ DQG IRRG LQVHFXULW\ WKLV GHILQLWLRQ TXLWH DFFXUDWHO\ FRYHUV WKH
    VLWXDWLRQ RI PDQ\ PLJUDQWV ZLWKLQ %XUPD  )XUWKHUPRUH WKH WHUP µJHQHUDOLVHG
    YLROHQFH¶ FRXOG H[WHQG WR %XUPHVH FLWL]HQV ZKR OHDYH WKHLU KRPHV GXH WR
    FRQVWDQW 63'& LQWLPLGDWLRQ HVSHFLDOO\ DV VROGLHUV HLWKHU KDUDVV RU WKUHDWHQ
    YLOODJHUV ZLWK SK\VLFDO KDUP RU IXUWKHU H[SORLW WKHP IRU QRQFRPSOLDQFH ZLWK
    63'& GHPDQGV  $QG WKH QRWLRQ RI µKXPDQPDGH¶ GLVDVWHUV FRXOG YHU\ ZHOO
    DSSO\ WR .DUHQ 6WDWH DQG RWKHU UHJLRQV RI UXUDO %XUPD LQ ZKLFK H[SORLWDWLYH
    63'&SROLFLHVKDYHFUHDWHGDSHUYDVLYHDQGGLUHIRRGFULVLV
    
    7REHVXUHWKHRPQLSUHVHQFHRI63'&VSRQVRUHGH[SORLWDWLRQPDNHVVXUYLYDO
    GLIILFXOW IRU QHDUO\ DOO %XUPHVH FLWL]HQV  ,W LV QHFHVVDU\ WR DVN WKHQ ZKHWKHU
    SHRSOH ZKR OHDYH KRPH IRU HFRQRPLF UHDVRQV \HW UHPDLQ ZLWKLQ WKH FRXQWU\
    VKRXOGDOVREHUHFRJQLVHGDV,'3VRUJRLQJHYHQIXUWKHULIWKHUHLVPXFKXVH
    LQ GLVWLQJXLVKLQJ EHWZHHQ ,'3V DQG LQWHUQDO HFRQRPLF PLJUDQWV ZKHQ WKH
    KXPDQULJKWVRIDOODUHGHJUDGHGWRDQXQVXVWDLQDEOHOHYHODWKRPH
    
    $OVRDOWKRXJKWKH*XLGLQJ3ULQFLSOHVDQGWKHSROLFLHVDQGGLVFXVVLRQWKH\KDYH
    LQVSLUHGKDYHEHHQDQLPSRUWDQWVWHSWRZDUGVUDLVLQJDZDUHQHVVDERXW,'3VLW
    LVLPSRUWDQWWRUHFRJQLVHWKDWWKHVHDUHµJXLGLQJSULQFLSOHV¶DQGGRQRWFRPSULVH
    DQ DFWXDO HQIRUFHDEOH LQWHUQDWLRQDO ODZ  0DQ\ FRXQWULHV KDYH QRW VLJQHG WKH
    *XLGLQJ 3ULQFLSOHV DQG YHU\ IHZ RI WKH VWDWHV WKDW IDFH WKH ZRUVW LQWHUQDO
    GLVSODFHPHQW LVVXHV KDYH UHFRJQLVHG QHHG IRU WKH IRUPV RI SURWHFWLRQ
    UHFRPPHQGHGE\WKH*XLGLQJ3ULQFLSOHV

    
    
     $ %RVVRQ ³)RUFHG 0LJUDWLRQ,QWHUQDO 'LVSODFHPHQW ,Q %XUPD :LWK $Q (PSKDVLV 2Q
    *RYHUQPHQW&RQWUROOHG$UHDV´,QWHUQDO'LVSODFHPHQW0RQLWRULQJ&HQWUH0D\S
    
    ,ELGS
    
    6HHIRUH[DPSOH)RRGFULVLV7KHFXPXODWLYHLPSDFWRIDEXVHLQUXUDO%XUPD.DUHQ+XPDQ
    5LJKWV*URXS$SULO

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    ([SDQGLQJ3URWHFWLRQ
    
    7KH SXUSRVH RI WKLV UHSRUW KDV EHHQ WZRIROG WR GHWHUPLQH WKH DFWXDO FDXVHV
    DQG PRWLYDWLRQV RI WKRVH ZKR OHDYH KRPH LQ %XUPD DQG WDNH RQ ZRUN
    HOVHZKHUH DQG WKHQ WR DVVHVV ZKHWKHU WKH UHOHYDQW LQWHUQDWLRQDO ODZV DQG
    QRUPV DFFXUDWHO\ UHIOHFW WKHVH IDFWRUV DQG SURYLGH HIIHFWLYH IUDPHZRUNV IRU
    SURWHFWLRQ
    
    $V .+5*¶V UHVHDUFK LQGLFDWHV PDQ\ SHRSOH ZKR OHDYH WKHLU KRPHV LQ UXUDO
    %XUPD KDYH GHFLGHG WR GR VR EHFDXVH RI WKH WKUHDWHQLQJ SROLWLFDO HFRQRPLF
    DQGVRFLDOHQYLURQPHQWFUHDWHGE\DEXVLYH63'&SROLFLHV%HFDXVHWKHUHDUH
    FRPPRQ DVVXPSWLRQV PDGH DERXW WKH WHUP µHFRQRPLF PLJUDQW¶ WKH KLJKO\
    VSHFLILFFDVHRI%XUPDUHTXLUHVDGLIIHUHQWWHUPWREHDSSOLHGWRWKRVHZKRDUH
    IRUFHGWRVHHNVXUYLYDORXWVLGHWKHLUKRPHDUHDVGXHWRWKHKDUPIXOFXPXODWLYH
    HIIHFWVRISHUVLVWHQWH[SORLWDWLYHDEXVH+HQFH.+5*VXJJHVWVWKDWWKHWHUP
    µOLYHOLKRRGUHIXJHH¶FDQKHOSWRPRUHDFFXUDWHO\FRQYH\PDQ\%XUPHVHSHRSOH¶V
    PRWLYDWLRQV IRU OHDYLQJ KRPH  7KH NH\ IHDWXUHV FKDUDFWHULVLQJ OLYHOLKRRGV
    UHIXJHHVDUHLOOXVWUDWHGLQWKHFKDUWEHORZ
    
    &KDUW/LYHOLKRRGVUHIXJHHV
    /LYHOLKRRGVUHIXJHHV
    

    
    
    8QGHUVWDQGLQJ WKH DEXVLYH IDFWRUV XQGHUSLQQLQJ SRYHUW\ DQG PLJUDWLRQ LQ WKH
    FDVH RI %XUPD LV FUXFLDO LQ DVVHVVLQJ FXUUHQW LQWHUQDWLRQDO SURWHFWLRQ
    IUDPHZRUNV  ,Q OLJKW RI WKH HYLGHQFH LQWHUQDWLRQDO ODZV DQG QRUPV PXVW EH
    DPHQGHG WR LQFRUSRUDWH D PRUH DFFXUDWH DQG QXDQFHG QRWLRQ RI µPLJUDQWV¶ LQ
    RUGHUWRSURWHFWWKHPLOOLRQVRI%XUPHVHFLWL]HQVZKRKDYHVRXJKWZRUNDEURDG
    LQ RUGHU WR VXUYLYH  7KH IXQGDPHQWDO ODFN RI OHJDO DQG QRUPDWLYH SURWHFWLRQ
    IUDPHZRUNV IRU PLJUDQWV IOHHLQJ FRQGLWLRQV RI OLIHWKUHDWHQLQJ SRYHUW\ VKRZV
    KRZFXUUHQWO\RXWRIV\QFWKHLQWHUQDWLRQDOOHJDOFRPPXQLW\LVZLWKWKHUHDOLW\RI
    DEXVHIDFHGE\SHRSOHOLYLQJLQ%XUPD
    
    1RU LV WKLV D SUREOHP WKDW FDQ EH LJQRUHG ± ZKLOH WKHUH DUH DERXW 
    RIILFLDOO\UHFRJQLVHG%XUPHVHUHIXJHHVFXUUHQWO\OLYLQJLQ7KDLODQGDQGDQRWKHU

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

     ,'3V GLVSHUVHG WKURXJKRXW UXUDO (DVWHUQ %XUPD WKHUH DUH LQ
    7KDLODQGDORQHDQHVWLPDWHGPLOOLRQ%XUPHVHZKRDUHFRPPRQO\UHIHUUHGWR
    DVµHFRQRPLFPLJUDQWV¶7KDWVRPDQ\SHRSOHDUHOHIWZLWKRXWDVLQJOHFRKHUHQW
    OHJDO DQG QRUPDWLYH SURWHFWLRQ IUDPHZRUN RQO\ PDLQWDLQV WKH VWDWH RI
    YXOQHUDELOLW\WKDWWKH\KDGWULHGWRIOHHZKHQWKH\OHIWWKHLUKRPHVLQ%XUPD
    
    7KLV HYLGHQFH VKRXOG OHDG SROLF\PDNHUV WR VHULRXVO\ TXHVWLRQ WKHLU FXUUHQW
    FRQFHSWLRQVRIHFRQRPLFPLJUDQWVIURP%XUPDDQGZKDWLIDQ\WKLQJVHSDUDWHV
    VXFK SHRSOH IURP WKRVH ZKR DUH FRPPRQO\ FODVVLILHG DV ,'3V RU UHIXJHHV
    ,QGHHG LW GRHV QRW PDNH HWKLFDO VHQVH WKDW D SHUVRQ¶V GHFLVLRQ WR VHHN RXW
    HPSOR\PHQW DORQH GHWHUPLQHV WKH DPRXQW RI SURWHFWLRQ WKDW WKDW SHUVRQ LV
    HQWLWOHGWRHVSHFLDOO\ZKHQKHRUVKHLVIOHHLQJDQXQOLYHDEOHVWDWHRIH[LVWHQFH
    LQ%XUPD%XWJLYHQWKHFXUUHQWDSSURDFKWRSHRSOHZKROHDYH%XUPDWKRVH
    ZKRILQGLWQHFHVVDU\WRPRYHDEURDGRURXWVLGHUHIXJHHFDPSVWRVXUYLYHDUH
    HVVHQWLDOO\SXQLVKHG LHOHIWZLWKRXWRIILFLDOO\UHFRJQLVHGOHJDOSURWHFWLRQRUWKH
    VHUYLFHV DYDLODEOH WR UHIXJHHV  LI WKH\ GHFLGH WR VHHN RXW HPSOR\PHQW DQG WU\
    DQGHDUQWKHLURZQZD\V
    
    5HFRPPHQGDWLRQV
    
    6\VWHPDWLF H[SORLWDWLRQ DQG RWKHU DEXVH ZLWKLQ %XUPD DUH URRW FDXVHV RI
    PLJUDWLRQRXWRIWKHFRXQWU\DQGQHHGWREHDGGUHVVHG+RZHYHUVRORQJDV
    WKLV DEXVH DQG PLJUDWLRQ FRQWLQXH DFWLRQ FDQ DQG VKRXOG EH WDNHQ WR DVVLVW
    YXOQHUDEOHSRSXODWLRQVIURP%XUPDQRZZRUNLQJDEURDG
    
    (VWDEOLVKLQWHUQDWLRQDOIUDPHZRUNV
    
    2Q WKH LQWHUQDWLRQDO OHJDO DQG SROLWLFDO OHYHO SROLF\PDNHUV PXVW GR EHWWHU WR
    HVWDEOLVK ODZV DQG QRUPV WKDW PRUH DFFXUDWHO\ WDNH LQWR FRQVLGHUDWLRQ WKH
    FDXVHVWKDWOHDGSHRSOHWROHDYHWKHLUKRPHVLQ%XUPD,WLVLPSRUWDQWWRQRWH
    KHUHWKDWDOWKRXJKWKLVUHSRUWKDVLQGLFDWHGWKHEOXUUHGOLQHVVHSDUDWLQJ,'3V
    UHIXJHHVDQGHFRQRPLFPLJUDQWVIURP%XUPDWKHUHDUHLPSRUWDQWUHDVRQVIRU
    ZK\ ODZV DQG QRUPV IRU UHIXJHHV DQG ,'3V GHILQH WKHLU VXEMHFWV LQ VXFK D
    QDUURZIDVKLRQ7KHPRUHVSHFLILFDQGOLPLWHGWKRVHODZVDUHWKHEHWWHUWKH\
    FDQ DGGUHVV WKRVH SHRSOH ZKR DUH WKUHDWHQHG E\ WKH PRVW H[WUHPH IRUPV RI
    SK\VLFDO GDQJHU  ,I WKRVH GHILQLWLRQV ZHUH WR EH H[SDQGHG WRR IDU WKH\ FRXOG
    SRWHQWLDOO\EHFRPHPHDQLQJOHVV
    
    :LWKWKDWVDLGHIIRUWVPXVWEHPDGHWRFUHDWHDVHSDUDWHVWURQJLQWHUQDWLRQDO
    UHJLPH WKDW FDQ EHWWHU SURWHFW PLJUDQWV IURP %XUPD ZKR KDYH VRXJKW RXW
    HPSOR\PHQWDEURDGDVDPHDQVRIVXUYLYDO$VKDVEHHQGLVFXVVHGDERYHWKH
    SROLWLFDO UHDOLWLHV VXUURXQGLQJ PLJUDQWV KDYH VWLIOHG HIIRUWV WR FUHDWH D UREXVW
    LQWHUQDWLRQDOFRQYHQWLRQIRUPLJUDQWZRUNHUV6RLWLVLPSRUWDQWWRFRQVLGHUKRZ
    
    
     ,QWHUQDO 'LVSODFHPHQW DQG ,QWHUQDWLRQDO /DZ LQ (DVWHUQ %XUPD 7KDLODQG %XUPD %RUGHU
    &RQVRUWLXP2FWREHUS

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    QRUPVFDQEHHVWDEOLVKHGZLWKRXWDFWXDOO\FUHDWLQJDQHQWLUHO\QHZFRQYHQWLRQ
    WKDW ZRXOG PRVW OLNHO\ EH XQGHUPLQHG RU LJQRUHG E\ JRYHUQPHQWV DQG
    LQWHUQDWLRQDO ERGLHV  %HWWV SURSRVHV D µVRIW ODZ¶ DSSURDFK WR HFRQRPLF
    PLJUDQWV³>7@KHUHLVQRQHHGIRUWKHFUHDWLRQRIQHZELQGLQJQRUPVLQRUGHUWR
    DGGUHVVWKHFXUUHQWSURWHFWLRQJDSV7KHEURDGQRUPVDOUHDG\H[LVWDQGVWDWHV
    KDYHDOUHDG\VLJQHGXSWRUHOHYDQWKXPDQULJKWVLQVWUXPHQWV:KDWLVUHTXLUHG
    LVVLPSO\D DQDXWKRULWDWLYHFRQVHQVXVRQWKHDSSOLFDWLRQRIWKHVHLQVWUXPHQWV
    WR WKH VLWXDWLRQ RI YXOQHUDEOH PLJUDQWV DQG E  D FOHDU GLYLVLRQ RI UHVSRQVLELOLW\
    EHWZHHQLQWHUQDWLRQDORUJDQLVDWLRQVIRUWKHRSHUDWLRQDOLPSOHPHQWDWLRQRIVXFK
    JXLGHOLQHV´
    
    %HWWV JRHV RQ WR SURSRVH FUHDWLQJ D QRUPDWLYH IUDPHZRUN IRU HFRQRPLF
    PLJUDQWV WKDW LV VLPLODU WR WKH *XLGLQJ 3ULQFLSOHV IRU ,'3V ³µ6RIW ODZ¶
    GHYHORSPHQW FRXOG EH DQDORJRXVO\ DSSOLHG LQ RUGHU WR GHYHORS WKH µ*XLGLQJ
    3ULQFLSOHVRQWKH3URWHFWLRQRI9XOQHUDEOH,UUHJXODU0LJUDQWV¶DQGWRGHYHORSD
    FOHDU RSHUDWLRQDO GLYLVLRQ RI UHVSRQVLELOLW\ DPRQJ LQWHUQDWLRQDO RUJDQLVDWLRQV
    DQDORJRXVWRWKHµFROODERUDWLYHDSSURDFK´
    
    ,QGHHG D *XLGLQJ 3ULQFLSOHV IUDPHZRUN IRU PLJUDQWV FRXOG KHOS WR UDLVH
    DZDUHQHVV RI WKH VSHFLILF SURWHFWLRQ QHHGV RIHFRQRPLFPLJUDQWVIURP%XUPD
    DQG WR DOVR GHYHORS D FXOWXUH RI UHVSRQVLEOH SROLF\ DPRQJ JRYHUQPHQWV DQG
    LQWHUQDWLRQDO ERGLHV  %XW WKLV IUDPHZRUN ZRXOG DOVR OLNHO\ VKDUH WKH ,'3
    *XLGLQJ 3ULQFLSOHV¶ ODFN RI ZLGHVSUHDG DSSURYDO ZLWK IHZ UHOHYDQW FRXQWULHV
    VLJQLQJ RU DGKHULQJ WR WKH SULQFLSOHV  DQG WKH IDFWWKDWWKRVHSULQFLSOHVGRQRW
    H[LVW DV UREXVW HQIRUFHDEOH LQWHUQDWLRQDO ODZ EXW UDWKHU MXVW DV VWURQJ
    UHFRPPHQGDWLRQV-XVWDVWKHPRYHPHQWWRHVWDEOLVKWKHULJKWVRI,'3VLVLQLWV
    LQIDQF\ VR WRR ZLOO LW WDNH WLPH EHIRUH WKH LQWHUQDWLRQDO FRPPXQLW\ LV DEOH WR
    UHFRJQLVH WKH VSHFLILF QHHGV RI %XUPHVH PLJUDQWV DQG WKRVH IURP RWKHU
    FRXQWULHV HPLJUDWLQJ IRU VLPLODU UHDVRQV  7KLV LV QRW D UHDVRQ WR DYRLG
    XQGHUWDNLQJVXFKDSURFHVVEXWGRHVSURYLGHUDWLRQDOHIRUDOVRVHHNLQJPRUH
    LPPHGLDWHZD\VWRDFW
    
    
    
     $ %HWWV ³7RZDUGV D µVRIW ODZ¶ IUDPHZRUN IRU WKH SURWHFWLRQ RI YXOQHUDEOH PLJUDQWV´
    81+&5S
    
    ,ELGS
    
    ,QDGGLWLRQWRHVWDEOLVKLQJVXFKDVRIWODZDSSURDFKWRSURWHFWLQJPLJUDQWVVHULRXVGLVFXVVLRQ
    PXVW WDNH SODFH DERXW KRZ H[DFWO\ VXFK D ODZ FDQ EH HQIRUFHG  :KLOH %HWWV SURSRVHV WKDW
    UHVSRQVLELOLW\IRULPSOHPHQWDWLRQEHGLVSHUVHGWRYDULRXVUHOHYDQWRUJDQLVDWLRQVWKHUHLVDOVRWKH
    SRVVLELOLW\RIHVWDEOLVKLQJDVLQJOHERG\WKDWFDQWDNHWKHILUVWVWHSLQGHWHUPLQLQJWKHVWDWXVRI
    VRPHRQH ZKR KDV OHIW KLV RU KHU KRPH LQ %XUPD  (VWDEOLVKLQJ D VLQJOH ERG\ WKDW VHUYHV DV D
    µPLJUDQWFOHDULQJKRXVH¶ VLPLODUWRWKH81+&5IRUUHIXJHHV FRXOGSRWHQWLDOO\KHOSGLVWLQJXLVK
    EHWZHHQ UHIXJHHV,'3V DQG PLJUDQWV  )XUWKHUPRUH WKLV UHSRUW KDV VKRZQ WKDW PLJUDQWV IURP
    %XUPDIDFHGLIIHULQJOHYHOVRILQVHFXULW\DWKRPH±IURPWKRVHZKRDUHIRUFHGWRSHUIRUPIRUFHG
    ODERXURQFHRUWZLFHD\HDUWRWKRVHZKRVXIIHUGHYDVWDWLQJH[SORLWDWLYHGHPDQGVRQDQHDUGDLO\
    EDVLV7KLVFOHDULQJKRXVHFRXOGSRWHQWLDOO\EHXVHGWRGLVWLQJXLVKEHWZHHQWKHVHPLJUDQWVDQG
    GHWHUPLQHZKRLVLQWKHPRVWLPPHGLDWHQHHGRISURWHFWLRQDQGDLG

    
    
    $EXVH3RYHUW\DQG0LJUDWLRQ

    ([SDQGSURWHFWLRQ
    
    'HVSLWH WKH LQHYLWDEO\ ORQJ ILJKW WKDW LV WR EH KDG LQ RUGHU WR HVWDEOLVK
    LQWHUQDWLRQDOOHJDOSURWHFWLRQVIRUPLJUDQWVFRQFUHWHVWHSVPXVWDOVREHWDNHQ
    QRZWRHIIHFWLYHO\DGGUHVVWKHQHHGVRIWKHPLOOLRQVRI%XUPHVHPLJUDQWVZKR
    DUH FXUUHQWO\ OLYLQJ DZD\ IURP WKHLU KRPHV ERWK LQVLGH DQG RXWVLGH RI %XUPD
    %UHHVZULWHVWKDW³>J@LYHQWKHIDFWWKDWUHIXJHHVDUHWUHDWHGDVµLOOHJDOPLJUDQWV¶
    RQFH WKH\ DUH RXWVLGH >D UHIXJHH@ FDPS WKH\ DUH KLJKO\ YXOQHUDEOH WR
    H[SORLWDWLRQDQGDUHLQQRSRVLWLRQWRGHPDQGWKHPLQLPXPZDJH´
    
    ,QGHHGPLJUDQWVWROG.+5*WKDWWKH\KDYHVXVWDLQHGDZLGHUDQJHRIDEXVHV
    ERWK GXULQJ PLJUDWLRQ DQG DIWHU WKH\ KDG OHIW%XUPD7KHVHDEXVHVLQFOXGHG
    KXPDQWUDIILFNLQJUDSHDEXVHVE\HPSOR\HUVH[WRUWLRQE\SROLFHDQGIRUFLEOH
    UHSDWULDWLRQWR%XUPD*LYHQVXFKZLGHVSUHDGDEXVHVDQGYXOQHUDELOLW\ERWK
    LQWHUQDWLRQDO ERGLHV DQG KXPDQLWDULDQ RUJDQLVDWLRQV FDQ WDNH VWHSV WR EHWWHU
    SURWHFW DOO SHRSOH ZKR OHDYH WKHLU KRPHV LQ %XUPD QRW RQO\ WKRVH ZKR KDYH
    EHHQRIILFLDOO\GHVLJQDWHGµUHIXJHHV¶
    
    7KH ILUVW VWHS LQ SURWHFWLQJ PLJUDQWV LV IRU LQWHUQDWLRQDO DJHQFLHV QDWLRQDO
    JRYHUQPHQWVDQGKXPDQLWDULDQRUJDQLVDWLRQVRSHUDWLQJRQ%XUPD¶VERUGHUVWR
    DFNQRZOHGJH WKH OHJLWLPDWH SURWHFWLRQ FRQFHUQV RI PLJUDQWV ODFNLQJ OHJDO
    UHIXJHH VWDWXV DQG OLYLQJ RXWVLGH RI RIILFLDOO\UHFRJQLVHG UHIXJHH FDPSV
    7KRXJK VXFK DFNQRZOHGJHPHQW FDQ RQO\ EH RIILFLDOO\ FRGLILHG LQ WKH OHJDO
    SURFHVVHV GHVFULEHG DERYH WKHVH ERGLHV DQG RUJDQLVDWLRQV FDQ LQ WKH
    PHDQWLPH FUHDWH WHPSRUDU\ SURYLVLRQV WKDWUHFRJQLVHWKDWWKHYDVWPDMRULW\RI
    SHRSOHZKROHDYHWKHLUKRPHVLQ%XUPDDUHGRLQJVRLQRUGHUWRVXUYLYH:LWKD
    EHWWHUXQGHUVWDQGLQJRIWKHVKHHUQXPEHURIYXOQHUDEOHSHRSOHOHDYLQJ%XUPD
    WKHVH DJHQFLHV DQG RUJDQLVDWLRQV FDQ EHJLQ H[SDQGLQJ WKHLU SURWHFWLRQ
    PDQGDWHVEH\RQGDQDUURZUHIXJHHSRSXODWLRQLQRUGHUWRWUXO\UHIOHFWWKHURRW
    FDXVHVRIDEXVHWKDWPRWLYDWHVRPDQ\WROHDYHKRPHLQ%XUPDDQGVHHNRXW
    ZRUN DEURDG  ,Q VXSSRUW RI VXFK DQ H[SDQVLRQ LQ SURWHFWLRQ ZRUN WKH
    LQWHUQDWLRQDO FRPPXQLW\ VKRXOG LQFUHDVH ILQDQFLDO ORJLVWLFDO DQG SROLWLFDO
    VXSSRUW WR ORFDO DQG LQWHUQDWLRQDO 1*2V HQJDJHG LQ SURWHFWLRQ ZRUN ZLWK
    PLJUDQW FRPPXQLWLHV IURP %XUPD  $Q\ SURWHFWLRQ DVVLVWDQFH VKRXOG LQYROYH
    VXSSRUW IRU WKH VHOILQLWLDWHG SURWHFWLRQ VWUDWHJLHV ZKLFK PLJUDQW ZRUNHUV DUH
    DOUHDG\HPSOR\LQJ
    

    
    
     , %UHHV ³5HIXJHH %XVLQHVV 6WUDWHJLHV RI :RUN RQ WKH 7KDL±%XUPD %RUGHU´ -RXUQDO RI
    5HIXJHH6WXGLHV  S
    
     :KLOH WKLV UHSRUW GRHV QRW HQGHDYRXU WR GRFXPHQW WKH SDUWLFXODU DEXVHV DQG YXOQHUDELOLWLHV
    ZKLFK%XUPHVHPLJUDQWVKDYHIDFHGDEURDGYDULRXVRWKHURUJDQLVDWLRQVDQGSXEOLFDWLRQVKDYH
    SURYLGHG LQGHSWK DQDO\VHV RI WKHVH LVVXHV  ([DPSOHV LQFOXGH %XUPHVH 5HIXJHHV (QG WKH
    ([SORLWDWLRQRI%XUPHVHLQ7KDLODQG5HIXJHHV,QWHUQDWLRQDO1RYHPEHUDQG7KDLODQG7KH
    3OLJKWRI%XUPHVH0LJUDQW:RUNHUV$PQHVW\,QWHUQDWLRQDO-XQH

    
    
    .DUHQ+XPDQ5LJKWV*URXS

    7KHORQJVWDQGLQJDEVHQFHRIDQHVWDEOLVKHGLQWHUQDWLRQDOSURWHFWLRQIUDPHZRUN
    IRU PLJUDQWV KDV PHDQW WKDW WKH SROLFLHV RI LQGLYLGXDO JRYHUQPHQWV KDYH
    GHWHUPLQHG WR ZKDW H[WHQW LI DW DOO  PLJUDQWV DUH SURWHFWHG ZKHQ WKH\ FURVV
    LQWHUQDWLRQDO ERXQGDULHV  7KLV LV WUXH IRU VHYHUDO RI WKH PDLQ FRXQWULHV WKDW
    FXUUHQWO\UHFHLYH%XUPHVHPLJUDQWV,PPHGLDWHVWHSVPXVWEHWKHUHIRUHWDNHQ
    WR HYDOXDWH KRZ HIIHFWLYHO\ WKHVH JRYHUQPHQWV¶ SROLFLHV FXUUHQWO\ SURYLGH IRU
    LQFRPLQJ PLJUDQWV DQG KRZ WKRVH SROLFLHV FDQ EHWWHU UHFRJQLVH WKH OHJLWLPDWH
    SURWHFWLRQ FRQFHUQV RI WKHVH LQGLYLGXDOV  :KHUH KRVWJRYHUQPHQW UHVWULFWLRQV
    DUHWKHSULPDU\EDUULHUVWRH[SDQGLQJOHJDOKXPDQLWDULDQDQGRWKHUDVVLVWDQFH
    WR YXOQHUDEOH PLJUDQWV HQJDJHG LQ SDLG ODERXU DGYRFDF\ ZLWK GRPHVWLF
    DXWKRULWLHV PD\ EH QHFHVVDU\ WR DPHQG UHVWULFWLYH SROLFLHV  3URYLGLQJ IRU
    %XUPHVHPLJUDQWVLVDQDFWRIHQVXULQJWKDWWKH\UHFHLYHWKHEDVLFULJKWVDQG
    SURYLVLRQVRZHGWRDOOSHRSOH
    
    +HQFH ZKLOVW VSHFLILF OHJDO PHFKDQLVPV DUH GHYHORSHG WR DGGUHVV WKH
    SDUWLFXODU QHHGV DQG YXOQHUDELOLWLHV RI PLJUDQWV DJHQFLHV JRYHUQPHQWV DQG
    1*2VFDQLPPHGLDWHO\H[SDQGSURWHFWLRQHIIRUWVE\XVLQJFXUUHQWLQWHUQDWLRQDO
    OHJDOKXPDQULJKWVFRQYHQWLRQVWRKHOSSURWHFW%XUPHVHPLJUDQWV
    
    

    
    

    You might also like