Business Sphere Magazine

Special: Asia Tomorrow 2010 Conference Issue
Spring 2010
The Future of
Sustainable Enterprise
hosted by
Featuring
Architecture in Recession (p. 15) Microcredit in India (p. 22) Oil Sand & Shale (p.25)
By Christine Jun By Shashwata Narain By Dakota Meyers
[Spring 2010. Volume I, Issue II]
From the Yale College Business Society & Business Sphere Magazine
Editor-In-Chief
Brian De
Paul Joo Dear Conference Attendee,
Editorial Director Welcome to Asia Tomorrow, Yale’s undergraduate Asia business conference. Today, you and
Dominic Insogna your peers will have the opportunity to listen to and interact with established leaders of business,
Monish Shah diplomacy, politics, and academia. Through keynotes, panels, discussions, and over lunch, you
will explore the sustainability of Asia’s expanding role in an increasingly global economy.
Managing Editor
Travis Gidado
The inaugural Asia Tomorrow conference took place as the global financial crisis was hitting full
Christopher Lee
force. While the global economy has since begun to recover, many have questioned the sustain-
Design Director ability of not only Asia’s relatively quick recovery, but also the greater Asian business model.
James Murphy Today’s conference will examine this issue from a variety of perspectives.
Layout Editor-In-Chief This issue of the Business Sphere Magazine combines the Yale College Business Society’s flagship
John Good conference with its magazine. It serves not only as a guide for the conference but also as a plat-
form for students investigating issues relevant to the theme of sustainable enterprise. Through
Graphics Editor this combined effort, we hope to provide a starting point for discussion and promote a compre-
Jamar Bromley hensive understanding of today’s business dynamics.

Operations Director
Bing Han
Yale University has developed a dynamic relationship with Asia centered on building greater
Andy Dewitt mutual understanding and preparing its students for leadership and service in an increasingly in-
terconnected world. Through your interactions with today’s speakers and your peers, we hope to
Publishing Director continue this process. Take advantage of this opportunity by asking hard questions and demand-
Connie Leong ing honest answers. After all, tomorrow, we will be inheriting the world that today’s leaders have
left behind.
Distribution Manager
Lindsey Raymond We would like to thank the YBS and BSM staffs for working tirelessly over the past year. We hope
you enjoy the conference and leave with a greater understanding of the underlying forces that
Administrative Editor have shaped and will continue to shape Asia.
James Zhang
Sincerely,
This magazine is published Kaiyuan Wang James Zhang

by Yale College students. Yale Director, Asia Tomorrow President & Founder, Yale College Business Society
University is not responsible Yale 2011 Founder, Asia Tomorrow
for its contents. The opinions
Yale 2011
expressed by the contribut-
ers to BSM do not necessar-
ily reflect those of its staff or Paul Joo Brian De
its advertisers. The design Editor-in-Chief, BSM Editor-in-Chief & Founder, BSM
and content of this magazine
Yale 2012 Yale 2010
are copyright of BSM and
may not be reprinted with-
out express written consent. Business Sphere Magazine • PO Box 200118 • New Haven, CT 06520-0118
info@BusinessSphere.org • www.BusinessSphere.org
2 B Business Sphere Magazine | Spring 2010

The Future of
Sustainable Enterprise
Conference Edition
4 Asia Tomorrow Conference

Schedule, Map & Keynotes 22 Feature: Microfinance in India
by Shashwata Narain
6 Asia Tomorrow Conference

Panel Descriptions 25 Feature: Oil Sand & Shale
by Dakota Meyers
14 Solar Power Subsidies

by Courtney Kaplan 28 Korean & Japanese Relations
by Christopher Lee
15 Feature: Architecture in Recession

by Christine Jun 31 Project Have Hope
by Lindsey Raymond
18 Dry Wells
by Jennifer Barrows 32 Pollution in China
by Shiv Kachru
20 Life Cycle Analysis

by Dominic Insogna 34 Gandhi & India’s Economy
by Corinna Lewis
Yale College Business Society Staff

Asia Tomorrow Conference Outreach and Event Management Finance
Director: Kaiyuan Wang Director: Shashwata Narain Director: Adam Bao
Deputy Diretors: Aimee Marquez Deputy Diretor: Swati Yanamadala Deputy Diretor: Ananya Hemvijitraphan
Siddhant Jhunjhunwala
Eric Li, Christine Saffold, Melissa Hou, Paul Dong Won, Christopher Lee, Debdeep Nath
Hanqing Yu, Yujiang Wu, Jie Min, Jasmine Lau, Cohen
Avichal Lalavi
Development Speaker Outreach Marketing
Director: Paul Joo Director: Lisa Andrekovich Director: James Murphy
Deputy: Connie Leong Deputy: Amanda Levis
Shiv Kachru, Besi Bezhani, Daniel Cheng, Daniel Will Jordan, Runqi Song
Eldaly
Business Sphere Magazine YBS President: James Zhang
Editors-in-Chief: Brian De, Paul Joo
Spring 2010 | Business Sphere Magazine B 3

The Future of Sustainable Enterprise
March 27th, 2010
Agenda
Time Event Description/Location
9:00AM - 10:00AM Registration - SSS 114
10:00AM - 10:10AM Opening Remarks - SSS 114

Keynote 1 - SSS 114
10:10AM - 10:50AM
Daniel Esty, Hillhouse Professor, Yale University
Plenary Panel - SSS 114
10:50AM - 12:00PM Sino-India Economic Integration:
Relevance, Approaches and Challenges
12:00PM - 1:30PM Speaker Luncheon - Residential Dining Halls
Keynote 2 - DL 220
1:30PM - 2:15PM
Tarun Khanna, Jorge Paulo Lemann Professor, Harvard Business School
Dragons and Tigers: Financing an Era of Re-
2:15PM - 3:15PM Business of Green - ML 211
gional Hypercompetition - DL 220
India’s Economy: A Lasting Balance:
3:15PM - 4:15PM
The Road Ahead - ML 211 Sustainable Energy & Policy in Asia - DL 220
4:15PM - 4:30PM Networking and Break - ML 211 and DL 220
Technological Innovations in
4:30PM - 5:30PM Sustainability and Business Capi- Leadership in a New Era - ML 211
tal - DL 220
Keynote 3 - SSS 114
5:30PM - 6:15PM
Rakesh Mohan, Former Deputy Governor of Reserve Bank of India
6:15PM - 6:30PM Closing Remarks - SSS 114
Event Locations
1 Sheffield Sterling Strathcona Hall (SSS)
3
2
2 Dunham Laboratory (DL)
1 3 Mason Laboratory (ML)

Keynote Speakers
Full speaker details provided at www.asiatomorrow.org
Jane Edwards
Yale University Associate Dean for International Affairs
Ms. Edwards provides strategic planning for and coordination of the various offices administer-
ing international programs for undergraduates; and serves as a liaison to those offices involved in
admitting and retaining international students; coordinates the relationship between Yale College
international activities and global initiatives at Yale.
Daniel Esty
Hillhouse Professor of Environmental Law and Policy at Yale University
Professor Esty is author or editor of nine books and numerous articles on environmental policy
issues and the relationships between environment and corporate strategy, competitiveness, trade,
globalization, governance, and development. Prior to taking up his current position at Yale, Profes-
sor Esty was a Senior Fellow at the Peterson Institute for International Economics (1993-94), served
in a variety of senior positions on the US Environmental Protection Agency (1989-93), and prac-
ticed law in Washington, DC (1986-89). Professor Esty earned an A.B. from Harvard, an M.A. as a
Rhodes Scholar at Oxford, and a J.D. from Yale.
Tarun Khanna
Jorge Paulo Lemann Professor at Harvard Business School
Tarun Khanna has worked with multinational and indigenous companies and investors in emerg-
ing markets worldwide. He joined Harvard faculty in 1993, after obtaining an engineering degree
from Princeton University (1988) and a Ph.D. from Harvard (1993), and an interim stint on Wall
Street. Outside HBS, he serves on the boards of the global power company, AES Corporation,
and India’s largest microfinance firm, SKS Microfinance, along with several others in the financial
services, energy, automotive, and life sciences sectors, and actively invests in and mentors startups
in Asia. In 2007, he was nominated to be a Young Global Leader by the World Economic Forum.
In 2009, he was elected a Fellow of the Academy of International Business.
Rakesh Mohan
Distinguished Consulting Professor at Stanford Center for International
Development & Former Deputy Governor of Reserve Bank of India
Dr. Rakesh Mohan is Non Resident Senior Research Fellow of Stanford Centre for International
Development, Stanford University Stanford. He was Distinguished Consulting Professor at Stan-
ford Centre for International Development at Stanford University. Prior to this, he was Deputy
Governor of the Reserve Bank of India, where he looked after the Monetary Policy Department,
and many others. Dr. Rakesh Mohan received his Masters Degree, Doctorate in Economics from
Princeton University, and BA in Economics from Yale University.

Sino-India Economic Integration:
Relevance, Approaches and Challenges
Co-hosted with:
SSS 114 10:50am-12:00pm
For further reading, see “Stormy Straits” (p. 28)
Over the past decade, Asia’s two largest and most ancient states have attempted to reignite diplomatic and eco-
nomic ties, bridging the rifts formed since the early 1950s as a result of border disputes and military conflict.
Positive trends in the Sino-Indian relationship are expected to spur regional development by removing bar-
riers to free trade and increasing the free movement of people, labor, goods, and capital across national bor-
ders. With China and India well positioned to become major driving forces of forming a socio-economic bloc
between South Asia and East Asia, the panel will explore the promising development of the two regions as well
as prospects of a Pan-Asian community.
Featured Panelists
Charles Hill
Diplomat-in-Residence and Lecturer in International Studies, Yale University
Charles Hill, a career minister in the U.S. Foreign Service, is a research fellow at the Hoover
Institution and cochair of the Working Group on Islamism and the International Order. He was
executive aide to former U.S. secretary of state George P. Shultz (1983-89) and served as special
consultant on policy to the secretary-general of the United Nations from 1992 to 1996.
T.N. Srinvasan
Samuel C. Park Jr. Professor of Economics, Yale University
T. N. Srinivasan is a Ph.D. from and Samuel C. Park, Jr. Professor of Economics at Yale Univer-
sity. His research interests include International Trade, Development, Agricultural Economics
and Microeconomic Theory. He was named Distinguished Fellow of the American Economic
Association in 2003 and was awarded the Padma Bhushan, the third highest civilian award of the
Government of India.
Winnie Sun
Vice President of Client Services, Strategic Outsourcing in Asia Pacific for
IBM Corporation, Global Technology Services
Winnie Sun’s focus is to lead the growth and satisfaction of IBM Asia Pacific client base. Prior
to this appointment, Winnie Sun was the Vice President, Global Production Procurement
Sourcing for IBM Corporation, Ms. Sun graduated with a MBA and earned a bachelor’s degree
in Electronic Engineering.
Rakesh Mohan
Distinguished Consulting Professor at Stanford Center for International
Development & Former Deputy Governor of Reserve Bank of India
See speaker details on page 5.

The Business of Green
Co-hosted with:
ML 211 2:15pm-3:15pm
For further reading, see “Life Cycle Analysis” (p. 20)
Environmental issues pose increasingly serious challenges around the world, and nowhere is this looming con-
cern more stark than in certain regions of Asia, where rapid industrialization is contributing to air and water
pollution, deforestation, and global climate change. Effectively solving these issues will require coordinated lead-
ership and innovation on many levels. This panel discussion will focus on the economics of conservation, corpo-
rate sustainability, the role of government actors, and the future of different environments throughout Asia.
Featured Panelists
Bruce Bunting
President, Bhutan Foundation
Bruce W. Bunting is the former managing director and vice president of World Wildlife Fund’s
Special Programs and Strategic Partnerships. He has served as an advisor and on the boards of
several organizations. Previously, Dr. Bunting served as consulting veterinarian for the Greenpeace
Foundation in Canada. He received a B.S. in zoology and a doctorate in veterinary medicine from
Michigan State University both with high honors.
Radha Kuppalli
Director, New Forests Inc., Former Analyst, Natsource LLC
Radha Kuppalli leads New Forests’ U.S. business and is focused on developing the ecological prod-
ucts investment program and supporting forestry investment globally. Radha has Bachelor of Arts
in International Studies and Economic Theory from American University in Washington, D.C., and
Masters in Business Administration and Environmental Management from Yale University’s School of
Management and School of Forestry and Environmental Studies.
Marian Chertow
Associate Professor of Industrial Environmental Management, Dir. of the Program
on Solid Waste Policy, Dir. of the Industrial Environmental Management Program
Marian Chertow is Associate Professor of Industrial Environmental Management and has been Direc-
tor of the Industrial Environmental Management Program at the Yale School of Forestry and Environ-
mental Studies since 1991. Her research and teaching focus on industrial ecology, business/environ-
ment issues, waste management, and environmental technology innovation.
Robert O. Mendelsohn
Edwin Weyerhaeuser Davis Professor of Forest Policy, Professor of Economics at Yale University
Professor Mendelsohn has concentrated his research on valuing the environment. His dissertation
included an integrated assessment model of air pollution that could measure the damages of emis-
sions. This work has been extended in recent years to greenhouse gases, where he has been trying to
measure the impacts of climate change. Recently, he has returned to studying air pollution in the hope
of measuring the marginal damages of emissions across the country.

Dragons and Tigers:
Financing an Era of Global Hypercompetition
Co-hosted with:
DL 220 2:15pm-3:15pm
Between the tiger economies of Korea and Singapore and China’s rising dragon, finance in Asia has evolved
rapidly over the past few decades. As the world struggles to climb out of the current global recession, Asia’s
powerhouse cities beckon as the breeding ground for new frontiers in finance. At this pivotal moment, the
decisions we make today may have lasting implications for the next century. “Dragons and Tigers” will draw
from the experience and knowledge of both seasoned executives and renowned professors as they address the
financial outlook for Asia’s future cities.
Featured Panelists
George Sorenson
Founder & Chairman, FE Clean Energy
Mr. Sorenson has spent the past ten years originating and closing direct equity investments in electric,
gas, water and telecommunications utilities in emerging markets throughout the world. Mr. Sorenson
has a B.A. in Finance from the University of Utah, and an M.A. from the American Graduate School of
International Management in Glendale, Arizona.
Jonathan Kim
Senior Vice President, Power & Utilities Group at RBS
Jonathan J. Kim has been the lead banker in various high-profiled and widely syndicated re-
newable energy financings, as well as conventional thermal power financing since he joined the
Power & Utilities Group in mid 2007. Mr. Kim received his Bachelor of Arts degree in Political
Science from the University of California at Irvine.
Carl Seaholm
Vice President of Strategic Relationships, Gale International
Carl Seaholm is responsible for locating and developing high level private and public sector rela-
tionships for Gale International’s $40 billion Songdo International Business District project. Mr.
Seaholm’s current responsibilities include cultivating the company’s relationships with its world-class
strategic partners to support the city’s quality of life, energy efficiency, sustainability and technologi-
cal superiority. Mr. Seaholm is a graduate of the University of Colorado.
Robert Shiller
Arthur M. Okun Professor of Economics, Yale University
Robert J. Shiller is the Arthur M. Okun Professor of Economics at Yale University, and Profes-
sor of Finance and Fellow at the International Center for Finance at Yale School of Management.
Professor Shiller has written on financial markets, financial innovation, behavioral economics,
macroeconomics, real estate, statistical methods, and on public attitudes, opinions, and moral
judgments regarding markets. Professor Shiller received his B.A. from the University of Michigan
in 1967 and his Ph.D. in economics from the Massachusetts Institute of Technology in 1972.

India’s Economy: The Road Ahead
Co-hosted with:
ML 211 3:15pm-4:15pm
For further reading, see “Microfinance in India” (p. 22) and
“A Trickle-Down Morals Economy” (p. 34)
The Republic of India has been labeled as one of the strongest emerging economies of the world. However, talk
of India’s economic potential is striking hard against the sobering realities of the problems that continue to per-
sist on a national scale. Some of the major challenges for India include improving governance, literacy rates and
infrastructure, increasing agricultural productivity and controlling inflation. The panel will discuss the nature of
the obstacles that the Indian economy faces and how it may overcome them in order to attain global economic
supremacy.
Featured Panelists
Sunil Singhal
Practice Head, Energy & Utilities, North America at TCS America
Sunil Singhal heads the Energy and Utilities business for Tata Consultancy Services in North Amer-
ica. TCS is a solutions provider to the Energy and Utilities sector worldwide. Sunil is interested in
issues relating to Energy Efficiency, Climate Change, Sustainability and Carbon Trading. Sunil was
educated at Indian Institute of Technology, Roorkee, India and NUFFIC, Netherlands.
Mark Heaphy
Partner, Wiggin and Dana
Mark Heaphy is the chair of Wiggin and Dana’s Information Technology and Sourcing Group. His
practice focuses on all aspects of the sourcing and procurement process, from initial RFP through
implementation and beyond. Mark has broad experience across a variety of industry sectors, in-
cluding financial services, healthcare, insurance, life-sciences, manufacturing, telecommunications
and utilities. He graduated Phi Beta Kappa from College of William and Mary, earned an M.A. in
international relations from Yale University and, a J.D. from University of Virginia School of Law.
Michael Corning
Senior Vice President, Client Development, Genpact
Michael Corning is a graduate of the Wharton School at the University of Pennsylvania and has
over 25 years of experience in financial services. Michael joined GE Capital Vendor Financial
Services where he held leadership positions in general management and business development.
He later joined Genpact, which at the time was a unit of GE, in 2002 and built a global team
focused on driving growth and managing relationships for clients. Michael was one of the key
architects of Genpact’s commercial strategy to expand its customer base in the Financial Servic-
es and Manufacturing sectors. He has lead the implementation of this strategy in the Financial
Services sector, which has been exceptionally well received in the marketplace and has resulted
in the addition of key strategic clients for Genpact.

A Lasting Balance:
Sustainable Energy and Policy in Asia
DL 220 3:15pm-4:15pm Co-hosted with:
For further reading, see “Solar Power Subsidies” (p. 14),
and “The Next Last Resort” (p. 25)
Increasing energy demands by the powerhouse economies of Asia have put the highlight on how the global
corporate world deals with the new-age challenges of energy sustainability. The crucial issues of energy policy
have become the focal point of international debate and pose increasingly relevant questions about how corpo-
rations in developing Asian countries will grapple with economic, political and financial pressure to attain the
status of ‘green business’. This panel aims to discuss the present and future of the integral relationship between
profitability, sustainability and international energy markets in light of the Asian business world.
Featured Panelists
Alessandro Gomez
Professor of Mechanical Engineering, Yale University
Professor Gomez has been at Yale since 1985 involved in teaching and research. He periodically
teaches undergraduate courses in the thermal/fluid area including: Thermodynamics, Aerody-
namics, Fluid Mechanics, Propulsion, and Laboratory on Fluid Mechanics and Thermodynamics.
His most recent effort has been the development of a class on Energy, Engines and the Environ-
ment, covering thermodynamics, global warming, fossil fuels and renewable energy. He also
teaches graduate classes in Combustion. On the research front, His research focuses primarily on
combustion and electrospray fundamentals with applications.
Thomas Weil 
General Counsel, WaterHealth
Thomas Weil has years of experience in consulting on international energy matters and
business transactions, and advising on major infrastructure projects in numerous countries,
including India and the Philippines. Named one of the leading energy lawyers in the United
States by the Chambers USA “America’s Leading Lawyers for Business 2005”, Mr. Weil spent
almost two decades with Skadden, Arps, Slate, Meagher & Flom in both Washington D.C.
and Houston as energy group counsel and partner - alternative energy project development
and financing. He has also been Lecturer at Yale Graduate School and School of Management
Studies. Mr Weil received a Bachelor of Arts from Yale University and his JD from the Univer-
sity of Virginia School of Law.
George Sorenson
Founder & Chairman, FE Clean Energy

Technological Innovations in
Sustainability and Business Capital
Co-hosted with: DL 220 4:30pm-5:30pm
For further reading, see “Architecture and the Recession” (p. 15)
In the midst of rapid industrialization spurring economic growth in Asia, technological advancements are a key
element in pushing countries to the forefront of the business development realm. However, technology re-
search is also essential for achieving climate sustainability, a prominent co-requisite for perpetuating long-term
improvements in economic status and quality of life. Moreover, the basic benefits of technology and engineer-
ing that can be provided to impoverished regions of Asia are often overlooked. This panel will explore various
means by which modern engineering and technology seeks to directly improve the well-being of the common
individual through environmental preservation and basic, indispensable social provisions that can reduce in-
come inequality in Asia.
Featured Panelists
Alessandro Gomez
Professor of Mechanical Engineering, Yale University
David Sacco
Civil Engineer, TPA Design Group, New Haven, CT
David Sacco works on site evaluation and design for residential, commercial and municipal cli-
ents. Mr. Sacco served as a school construction volunteer with the Peace Corps in Gabon, and as
an Associate Field Officer for UNHCR in Sri Lanka through the United Nations Volunteers. He
is also a project mentor for the EWB Yale Student Chapter water supply project in Kikoo, Camer-
oon. He received a BA in Architecture at Yale University and an M.S. in Civil Engineering at the
University of Washington.
Mun Y. Choi
Dean of Engineering, University of Connecticut
Dr. Choi joined the Mechanical Engineering Department at University of Connecticut in
2008. He served as a faculty member in the Mechanical Engineering Department at the
University of Illinois from 1994 to 2000. He joined Drexel University in 2000 and served as
Department Head of Mechanical Engineering and Associate Dean for Research. Dr. Choi
received his B.S. from the University of Illinois at Urbana-Champaign in 1987. He received
his M.A. and Ph.D. in Mechanical & Aerospace Engineering from Princeton University in
1989 and 1992, respectively. He was a NRC post-doctoral fellow at NIST from 1992 to 1993.
His current research effort is focused on advancing the understanding of sooting and radia-
tion on droplet combustion and soot diagnostic techniques.

Leadership in a New Era
ML 211 4:30pm-12:00pm Co-hosted with:
For further reading, see “China’s Pollution Nightmare” (p. 32)
Since Deng Xiaoping implemented his “open door policy” in 1978, the influx of foreign investment and the
proliferation of multi-national enterprises (MNEs) have played a crucial role in China’s spectacular economic
growth. In recent years, however, foreign MNEs are increasingly encountering challenges from domestic
competition in the industries, as well as social and environmental externalities. As the future of MNEs seems
uncertain, it becomes clear that further innovation and competent leaders are required to create logical solu-
tions in order to sustain China’s economic growth. The panel discussion will focus on the role of leadership in
facing opportunities and challenges to MNEs in greater China, as well as what the future holds.
Featured Panelists
Nancy Yao
Executive Director, Yale-China Association
Former Vice President, Goldman Sachs Hong Kong
Nancy Yao Maasbach has spent several years with Goldman Sachs in Hong Kong and New
York, where she served as Vice President and as Director of Policy Research and then as the
Director of Asia at the Center for Financial Research and Analysis. In the non-profit sector,
Nancy served as Managing Director of Corporate Programs at the Council on Foreign Relations
(CFR). She has a degree in Diplomacy and World Affairs with a minor in Chinese language
from Occidental College. She received an MBA from the Yale School of Management.
Steven Chang
Chair, Dept of Marketing & International Business, Long Island University
Dr. Chang has a rich mix of work and professional experience in the field of international busi-
ness and marketing strategy. Dr. Chang is a member of the New Jersey State Export Finance
Company Advisory Council, an appointment by the then New Jersey Governor Christine T.
Whitman. His research has appeared in journals such as Journal of World Business, Journal of
Global Marketing, and several others. He was the recipient of a Fulbright Grant, a Keller Grant,
a United Nations Development Program Grant and many scholarship awards.
Peter C. Fusaro
Chairman, Global Change Associates, New York
Peter C. Fusaro is Chairman of Global Change Associates and is a best selling author of
several books on energy and the environmental financial markets. Mr. Fusaro has been on
the forefront of energy and environmental change for over 35 years focusing on oil, gas,
power, coal, emissions, cleantech, carbon trading and renewable energy markets. Mr. Fu-
saro graduated with an MA in international relations from Tufts University and a BA from
Carnegie-Mellon University.

Energy
The Forecast for Solar Power

A comparison of renewable energy subsidies in Germany and the United States
By Courtney Kaplan
Even if global energy usage were of higher bills. However, the subsidy Emergency Economic Stabilization
to remain constant at 2005 levels, supports an estimated 250,000 green Act extended the 30% solar invest-
conventional crude oil would be de- jobs, and Germany’s photovoltaic ment tax credit for 8 more years,
pleted by 2045, adding urgency to the industry is valued at nearly 6 billion providing a boost to solar power in
movement toward alternate sources euros. Perhaps most importantly, the U.S. In addition, the American
of energy. Solar energy is an enticing photovoltaic cells do not release any Recovery and Reinvestment Act of
alternative because of its omnipres- carbon dioxide, presenting an attrac- 2009 allows firms to combine the
ence; globally available solar energy tive alternative to traditional fossil solar investment tax credit with
resources are so vast that using only fuels. tax-exempt financing. This combina-
.02% of the sun’s power would suf- tion reduces the amount of capital
ficiently replace all fossil fuel and In 2000, the German government needed to develop a solar energy
nuclear energy. passed the Renewable Energy Law, project, making photovoltaic panel
which created a feed-in tariff that installations cheaper for consumers.
Photovoltaic cells made from silicon awards subsidies to energy provid- Another incentive that has stimulated
and cadmium convert solar radia- ers who supply electricity generated the production of solar panels is the
tion into a direct electrical current. from renewable sources. The law also opportunity to sign power purchase
Since 2002, solar energy has become requires that electricity companies agreements. Under such contracts, a
the fastest growing sector of renew- generate at least some energy from company installs solar panels in pri-
able energy, and the production of renewable sources, even if the com- vate homes or businesses at no imme-
photovoltaic cells has doubled every panies must pay above market rates diate cost in exchange for a 25-year
two years. Since the cost of solar to do so. electricity contract. Consumers also
panels today is more expensive than benefit from locked-in energy prices.
traditional grid electricity in most In 2007, Germany produced 3.8 giga- An estimated 90% of all new solar
locations, government incentives are watts of solar energy, and since then, panels in the Untied States are being
often utilized to stimulate the devel- over 1 GW of solar power has been installed under this agreement.
oping industry. For example, Ger- added each year. And this number is
many, Japan, Italy, and France have expected to continue rising. As more The American economy is overde-
all implemented financial incentives photovoltaic cells are purchased, they pendent on petroleum imports from
for the industry, triggering growth in are being manufactured in greater the Middle East and OPEC nations;
demand. volumes. Due to economies of scale, the development of solar power is an
their price is projected to fall steadily exciting opportunity to gain more
Germany has implemented the larg- in coming years. Already, the Renew- independence in our energy needs.
est government incentives and cur- able Energy Law has been amended The government should observe the
rently accounts for 49% of the global to reduce subsidies for renewable success that Germany has had using
solar energy market. Next on the energy as it becomes more economi- incentives to promote the solar power
list are Japan and the United States; cally viable. industry, such as Germany’s feed-in
combined, these three countries ac- system, which has created thousands
count for 89% of global photovoltaic In comparison, solar power accounts of jobs during a difficult period for
production capacity. for less than 0.1% of all energy gener- much of the manufacturing industry.
ated in the United States. However,
In Germany, the cost of the subsidy is the U.S. government has taken steps Courtney Kaplan is a freshman in
transferred to consumers in the form to increase this proportion. The Pierson College.

Environment
Feature
Architecture and the Recession

The uncertain business environment is behind a growing emphasis on
sustainable design
By Christine Jun Disney’s Imagineering, Los Angeles- houses with home offices over those
native Natasha Case decided to start with other special installations such
In the world of architecture, those her own line of ice cream sand- as home theaters and additional
who succeed are often the ones will- wiches—from a truck. Similar to guest rooms. Understandably, there
ing to spend many sleepless nights The Cupcake Truck founded by an has also been a trend toward smaller
on their craft, fueled by passion and ex-corporate finance employee from and more utilitarian spaces. For
caffeine. But in the world of archi- Harvard, the ice cream sandwich instance, The Dia Art Foundation in
tecture during a recession, it is the truck began with an initial invest- New York announced in November
sustainability-minded architects ment of $10,000 to buy and redeco- 2009 that instead of building a new
who thrive and the traditionalists rate an old postal service truck from 34,000-square-foot art museum, it
who sink. Because of their close Craigslist. Since then, Ms. Case’s would opt for a 25,000-square-foot
ties with the construction industry, homemade ice cream sandwich en- space on a parking garage site the
architects have been hit far worse deavors have grown into a business Foundation already owns in Chel-
than their peers in many other with several employees and possibly sea. At the University of California
industries; almost all architecture a future shelf spot at Whole Foods. in Berkeley, major plans to extend
firms have trimmed down, at least the university’s main museum were
to some extent, and are surviving by But not all architects out of com- canceled. Across the nation, the
reshaping their philosophy on what mission have had success stories like recession has highlighted the ques-
a building really is. Ms. Case’s. Some have picked up tion of how space may best serve
miscellaneous low-wage jobs, while the needs of occupants. With the
Architects hold a very specialized others have moved back in with recession, lenders have begun to re-
license. Unlike many other de- their parents. When he lost his job consider the stereotypical American
grees, which can apply to multiple and waited to transition between ideal of “bigger is better.” Instead of
fields and various job categories, firms, John Morefield began setting installing home theaters or renovat-
architects are limited to a relatively up a whitewashed booth at farm- ing and extending museum walls,
narrow field of professional options. ers’ markets in Seattle. The booth, consumers and corporations alike
With the construction industry which bore strong resemblance to a are now seeking ways to reduce
looking as gloomy as it does today lemonade stand, was labeled “Archi- operational costs.
with no clear signs of a long-term tecture 5 Cents.” Accordingly, the architects who are
upturn on the horizon, many un- flourishing in this changing busi-
employed architects have temporar- The demand for sustainable design ness environment are the ones who
ily folded up their blueprints and is also perpetuated by evolving con- have begun incorporating sustain-
stored away their drafting pencils sumer dynamics. According to the able and energy-conserving designs
to pursue their favorite pastime American Institute of Architects, into their art. At a time when many
activities. A baking fanatic out of residents are increasingly opting for businesses are experiencing nega-
the office and once a designer at

“
tive growth, some certified archi- energy-conserving or environmen-
tecture companies and sustainable tally conscious architecture firms.
design consulting firms such as Foster + Partners in London is With an ever-growing
Leadership in Energy and Environ- currently undertaking a large-scale
mental Design, or LEED, have actu- project, Masdar City, in the United emphasis on sustain-
ally seen an uptick in revenue. “We
were able to maintain our project
Arab Emirates, that is to rely solely
on solar and renewable energy
ability, LEED-qualified
load to stay productively busy. We while boasting a zero-waste ecol- architects will be in
didn’t lose money last year,” says ogy. In South Korea, architecture
John An, a consultant at Atelier Ten, firm Kohn Pedersen Fox Associates
increasing demand,
the environmental consulting firm is working with Gale International while uncertified
that played a major role in design- and local partners to construct
ing Kroon Hall at Yale University. Songdo, a $40 billion interna- firms and construc-
Incidentally, Kroon Hall is currently tional business district in the city of tion companies that do
seeking the highest energy and en- Incheon designed to be one of the
vironmental design award, known greenest cities in the world. When not have the capacity
as LEED Platinum. asked about why some firms are
thriving while others are faltering,
to design with envi-
Other groups around the globe have a spokesman replied, “The sustain- ronmental and energy
also noticed the relative success of ability industry has a better level of
priorities in mind will
be left behind.
resilience.”
Although the green movement was

well under way before the reces-
sion, architectural developments
have been hit with a force that is
turning the industry toward more
engineering-focused endeavors. In-
deed, architecture’s foundation rests
on Newtonian mechanics as much
as on artistic design, but now more
than ever, the stress on reducing
energy consumption requires that
architecture not rely on traditional
technologies for air circulation
and temperature control. Instead,
architects may have to think more
as engineers and attempt to incor-
porate novel ways of producing the
same effect. Examples include using
a geothermal system to heat a build-
ing or using rainwater collected
from a green roof as toilet water.
Songdo’s success is the result of
close collaboration between envi-
ronmental designers, engineers, and

architects: in Korea, Kohn Pedersen other agencies are adapting at the The recession has merely acceler-
Fox Associates shares offices with same rate. For instance, existing ated a process that had already been
its main engineering partner, Arup, building codes may not be condu- underway, and the best-performing
and the Korean construction and cive to pursuing sustainable design. firms have been the greenest think-
engineering company that first con- In the case of Songdo, Mr. Gamburg ers. And there is still infinite room
ceived the idea of Songdo, POSCO notes, “Incheon is an industrial hub. for growth in architecture. With an
E&C. “It was the collaborative office Building codes that are national ever-growing emphasis on sustain-
set-up that was really important at and local regulations in Incheon ability, LEED-qualified architects
the end of the day. It’s that expertise were based on older prototypes,” will be in increasing demand, while
that flows freely from engineer to such as 12 lanes for major roads uncertified firms and construc-
architect to constructor,” according and the minimum 50-foot space tion companies that do not have
to Elie Gamburg, a senior architect between tall buildings. These codes the capacity to design with envi-
at Kohn Pedersen Fox. may function in existing parts of ronmental and energy priorities in
Incheon, but for a district promot- mind will be left behind. It seems
The shifting focus in architecture is ing a verdant, pedestrian-friendly that the recession is positioning
one that will be advantageous for atmosphere, twelve lanes of black smart architecture for dominance
curbing future energy consumption asphalt cutting through the city may at the forefront of the marketplace.
and influencing many other spheres, not fit the aesthetic. Nonetheless, After all, even the guy selling his
from the construction industry to investors, corporations, research advice on sustainable design for five
independent actors considering agencies, and residents are already cents at the farmers’ market made
their own environmental impact. moving into Songdo, as construc- $50,000 last year.
However, this shift comes with a tion continues at a rapid pace. Even-
learning curve. Just because archi- tually, groups such as transportation Christine Jun is a sophomore in
tecture is being forced to become agencies may need to adjust to meet Davenport College.
environmentally-conscious due to environmentally-friendly standards
the recession does not mean that as well.

Environment
Dry Wells
Water shortages, exacerbated by population growth, are fueling conflict
around the world
By Jennifer Barrows in increased agricultural production of the demand comes from areas
and demands from growing urban south of Sacramento, but most run-
In February 2009, Governor Arnold populations. Natural conditions off is north of this city.
Schwarzenegger proclaimed a state such as drought further exacerbate
of emergency in California: 2009 this precarious situation. In simple Inconsistencies between geography
marked the third year of severe economic terms, demand often far and human needs are at the crux
drought in the state, with several exceeds supply. of water shortage crises around the
more years of drought forecasted for world. California is relatively fortu-
the near future. Despite increased Legislative measures such as bring- nate in that water access is largely a
snowfall this year and partially ing in new water supplies and local, intrastate issue. Local officials
replenished reservoirs, water levels placing restrictions on water usage can respond in complementary
remain below normal—for now, it is have been passed in states such as manners throughout the state, mag-
too early to declare California’s water California and Florida, but these are nifying the measures that Governor
crisis over. merely stopgap methods as govern- Schwarzenegger and environmental-
ments try to balance growth against ists outlined as critical components
Unfortunately, California’s situation nature’s limits. California’s popula- for water conservation during the
is not singular. On a planet cov- tion, for instance, will grow to 53 state’s shortage. Many other areas of
ered 70% by water, a paltry .007% million people by 2030, a rise that the United States and other nations
of water actually is readily acces- corresponds to an extra 2 to 3 mil- facing water crises must instead fight
sible for human use, a scarcity that lion extra acre-feet per year increase the problem out with each other,
affects countries around the globe. in water demand. Such growth is leading to or aggravating established
From Israel to the United States, clearly unsustainable when viewed political tensions.
chronic water shortages are rooted within a geographical context: most

Since 1990, Florida, Georgia, crises. In the Middle East, an un- resources into expensive, large-scale
and Alabama have been locked likely accord has emerged between projects.
in a 20-plus-year water war over Jordan and Israel in response to dire
man-made Lake Lanier. In 1989, water shortages in these two states. These case studies compose only a
the U.S. Army Corps of Engineer Although official environmental fraction of the extent of water short-
recommended diverting more water impact studies will not be released age crises that nations face today
toward Atlanta in order to support for several more years, Jordan is as exponential population growth
its booming population. In response supporting several controversial increases demand. Another critical
to the Corps’ recommendation, measures to relieve the shortage factor, somewhat paradoxically, is
both Florida and Alabama disputed issue: with Israel’s support, Jordan the rise in standards of living. The
the reallocation, citing ecological seeks to utilize desalination plants average person requires about 13
issues and a violation of the Na- along Israel’s coast, create a pipeline gallons of water each day for sanita-
tional Environmental Policy Act. In from the Dissi Reservoir to Amman, tion, cooking, and survival, not in-
2009, Judge Paul Magnuson ruled and cut a path from the Red Sea to cluding indirect water consumption
that these states had three years to the Dead Sea through which water through food, gardening, or indus-
legally resolve the issue; otherwise, would be pumped to restore the trial needs, but in many countries,
water usage from Lake Lanier would Dead Sea’s water levels. sanitation problems, rural-urban
revert to 1970s levels. Although Lake pricing differences, and lack of ac-
Lanier returned to full volume in However, environmentalists are cess pose major obstacles, especially
late 2009, the dispute still stands, railing against these measures and for poorer citizens. Daily indoor per
and conservationists are reluctant to criticizing them for failing to ad- capita water use in the United States
declare full recovery. dress underlying issues. The agricul- and many other developed nations
tural economies in Jordan and Israel exceeds 60 gallons. As developing
Cooperation is critical for respond- depend heavily on water-intensive nations rise out of poverty, their
ing effectively to water shortage crops, an ironic situation in a region water consumption patterns will
“
notoriously short of accessible water. increasingly mirror the levels of the
Diverting water supplies into the developed world, exacerbating the
region will temporarily address the demands of growing populations.
Daily indoor per supply problem, but according to
some, this amounts to a bandage
Benjamin Franklin stated in his Poor
Richard’s Almanac, “When the well
capita water use in over an area quickly losing its life- is dry, we know the worth of water.”
blood.
the United States and Today, too many already understand
many other developed A key issue critics point out is the the severity of water shortage prob-
amount of water Jordan wastes as a lems and their implications for the
nations exceeds 60 result of leakage and illegal wells— future. As the world nears 7 billion
gallons. As develop- with little enforced regulation in
Jordan, this widespread free rider
people, problems regarding water
access will become even more acute
ing nations rise out of problem continues to plague author- and political and economic reper-
ities. Thus, rather than build a com- cussions more magnified. In order
poverty, their water plex network of pipelines, environ- to ensure safe, adequate supplies for
consumption patterns mentalists suggest that governments posterity, the issues surrounding
should embrace conservation as the water—quality, access, supply—need
will increasingly mir- first step toward remedying water to be addressed today.
ror the levels of the de- shortages around the world. Because
conservation is the most cost-effec- Jennifer Barrows is a sophomore in
veloped world, exacer- tive and immediately viable method Davenport College.
to sustain adequate water supplies in
bating the demands of the future, governments should first
growing populations. seek to exhaust a wide array of con-
servation measure before pouring

Environment
Life Cycle Analysis

Overview of an increasingly important link between corporate deci-
sion-making and environmental concerns
By Dominic Insogna how to incorporate environmental the product are quantified, and
performance based on the life cycle the effects on the environment are
In the past decade, with the envi- concept into their decision-making analyzed. Finally, interpretation of
ronment surging to the forefront of processes.” these findings involves assessing
policy debate and public concern, the data along with other factors
and with increasing pressure on The concept of life cycle assessment to determine the ideal product and
large corporations to adopt more arose in the 1960s amid increasing production method.
sustainable practices, a once ob- concern over limited resources and
scure system of evaluating the envi- energy supplies. Throughout the de- LCA has lately received the much
ronmental impact of products has cade, environmentalists conducted attention from companies, govern-
received increasing attention from extensive research to account for ments, and NGOs, but it is not the
private companies and governments the costs and environmental impact only system of environmental waste
worldwide. of products and energy sources. A analysis presently utilized by large
defining case in the history of life companies. Notably, the German
Life cycle analysis, also know as cycle analysis came in 1969 when chemical giant BASF devised a
life cycle assessment or “cradle-to- researchers for the Coca-Cola Com- similar system of “eco-efficiency
grave” analysis, essentially examines pany analyzed the environmental analysis” in 1996, which has since
the entire “life cycle” of a product, effects of different containers and been used in over 250 cases in Eu-
tracking it from its origin as raw bottling methods, and effectively rope and North America to attempt
materials excavated from the earth defined the methods and proce- to provide a rival analysis of the en-
until its death long after its disposal, dures of LCA that persist today. vironmental footprint of products.
and examining the environmental
impact of a product by quantifying LCA has seen an increase in popu- However, LCA has many advantages
the waste produced at each stage of larity and refinement of standards when compared to alternative sys-
a product’s life. Under the standard- throughout the decades, and the tems of waste analysis. First, LCA
ized system of life cycle analysis, current procedure is standardized offers a much more comprehensive
the life cycle of a product generally by the International Standardiza- and accurate method of evaluating
consists of four phases: raw materi- tion Organization. Standardized a product’s environmental impact.
als acquisition, manufacturing, use, life cycle analysis consists of four Many systems only look at the emis-
and waste management. Ultimately, main processes: goal definition and sions or waste of a finished product.
the results of this evaluation allow scoping, inventory analysis, impact But under the framework of life
companies to identify the most assessment, and interpretation. cycle analysis, the company must
sustainable products and methods During the first stage, the prod- not only take into account the emis-
of production. According to the uct and the boundaries by which sion produced by manufacturing a
United State Environmental Protec- the analysis will be conducted are product, but also the environmental
tion Agency, “Companies, federal defined. During inventory analysis impact of obtaining raw materials
facilities, industry organizations, or and impact assessment, the emis- and the impact of disposing of the
academia can benefit from learning sions or other waste produced by product after its use. By analyz-

“
LCA to compare the two methods tween sustainability and profit. And
of printing and two methods of while more comprehensive than
Under the framework plate processing. The study found a other methods, LCA is still lim-
method of “flexographic” printing ited in scope. The primary outputs
of life cycle analysis, to save nearly 50% of the energy measured in LCA are kilograms of
the company must not and gases emitted by the compa- greenhouse gas emission and mega-
rable “gravure” printing process. joules of non-renewable energy
only take into account The study also found that a specific consumed. But LCA does not con-
the emission produced system of plate processing saves ap-
proximately 30% of the energy and
sider some factors with significant
environmental influence, such as
by manufacturing a greenhouse gases of other systems. toxicity. Lastly, while the methods
of conducting LCA are standard-
product, but also the But while the gradual trend shift of ized by the ISO, no standardization
environmental impact businesses and governments to- of evaluating and interpreting the
wards LCA is undoubtedly a step in results exist, and differing interpre-
of obtaining raw mate- the right direction toward a more tations of the results of a study can
rials and the impact of sustainable and environmentally undermine the intent of the analy-
friendly corporate culture, it is by sis.
disposing of the prod- no means a perfect process. Among
uct after its use. its many problems, quantifying
the waste produced by a product
Life cycle analysis is far from an
exact science. But it is currently the
ing the cradle-to-grave impact of a at each stage in its life cycle can be best system available. Its popular-
product rather than focusing only an extremely long and complicated ity has been steadily increasing due
on easily identifiable waste, LCA process. Potential factors that merit to support from governments and
allows companies, governments, observation are nearly infinite, and companies, and standardization
or other organizations to make a lack of concrete data can con- of the process has made it more
estimates of waste production and found the process. Tracking the accessible. But in order for LCA
energy consumption more in tune environmental harm that a plastic to assume its full potential as an
with reality. Also, by quantifying bottle can have on the environ- effective tool to monitor waste and
the amount of waste produced and ment after its disposal could take energy output and create sustain-
energy used, companies can more decades, and matching that impact able enterprise, the process must
easily make decisions and trade- with a concrete number is far from be further streamlined to include a
offs to determine the ideal balance an exact process. Furthermore, even standard system of interpretation,
between profits and environmental when an acceptably accurate assess- and more regulation must be im-
impact. ment of a product’s environmental posed by the government to expand
impact can be reached, a company its implementation. Making LCA
As environmental advocacy has put is by no means bound to pursue a mandated component of compa-
increasing pressure on companies the most environmentally friendly nies’ decision-making processes will
to adopt more sustainable practices, route despite the evidence, although help make environmental concerns
many large businesses have begun this is a social problem that is not a more integrated part of corporate
incorporating life cycle assessment exclusive to LCA. culture, and will be an important
into their business models. Multi- step in creating a more sustainable
national companies such as Toyota, Confounding factors, most nota- corporate world.
McDonald’s and DuPont have pub- bly cost, must also be considered
licized their use of LCA to analyze when determining a company’s Dominic Insogna is a sophomore in
the environmental impact of their manufacturing method or product. Berkeley College.
products, and have made adjust- At this junction, the element of
ments to their products and manu- environmental conscientiousness
facturing accordingly. American plays an important role as corporate
chemical giant DuPont in 2008 used leaders balance the trade-off be-

Finance
Feature
Microfinance in India
The critical role of microcredit loans and how they are shaping India’s future
By Shashwata Narain
In a country home to nearly a third of approximately $10, typically meant MFIs. There are numerous and com-
the world’s poor, microcredit lending, for a year or less. plex reasons behind this problem, the
or microfinance, is nearly seen as a most obvious of which is that lend-
gift sent straight from the heavens. A Since its conception in 1976 by ing out small sums for short periods
21st century buzzword, microfinance Bangladeshi economist Muhammad to customers with particularly low
has received much attention in India Yunus, who went on to establish credit ratings can be financially detri-
for its potential to provide poor indi- Grameen Bank in 1983, microcredit mental for large commercial banks.
viduals with the means to engage in lending has changed the face of
self-employment projects and gener- India’s banking sector. Over the past On the other hand, MFIs lending
ate income in order to escape poverty. 30 years, microlending in the Indian without the partnership of larger
With an ever increasing market size economy has grown dramatically— banks have found it increasingly
at the “bottom of the pyramid” and according to a global ranking of the difficult to procure cheap funds to
growing receptiveness among the top microfinance institutions (MFIs) support their operations on a wider
masses, microfinance has morphed published by Forbes in 2007, India scale, which has contributed to the
into an exciting concept not only for and Bangladesh together are home to fact that interest rates on microcredit
India’s impoverished but also for its a lion’s share, with seven MFIs from can be as high as 35% just so that
policymakers and the financial sector. India alone making it into the top 50, MFIs can sustain themselves. These
Many foresee that the future of the including Bandhan, SKS and Saad- phenomenally high interest rates
enterprise lies in a partnership be- hana Microfin Society. have the potential to undermine the
tween commercial banks and micro- benevolent intent of microfinance.
finance institutions so as to overcome Studies predict that MFIs in India To ensure that microcredit remains
microcredit’s biggest challenge today: will likely lend more money than a viable option for India’s poor, it is
lowering lending interest rates so that the formal banking sector in com- becoming increasingly important to
microcredit can remain a viable oping years. One study conducted by a lower interest rates by encouraging
tion for the poorest in India. Delhi-based non-profit organization partnership between microcredit
reveals that microcredit lenders real- institutions and large banks, with the
Microcredit lending is the extension ized a 60% increase in clients in India former leveraging its ability to evalu-
of small loans to individuals whose during the year that ended in March ate the risks associated with lending
credit ratings would not qualify them 2009, as compared to the modest 15% on an individual scale, and the latter
for conventional bank loans. More growth in the number of low-income having the access to cheap funds and
specifically, these undersized loans customers served by the formal bank- general financial know-how. Such a
are aimed at poor individuals for ing sector over the same period. partnership is only possible if micro-
income-generating activities, without credit institutions work on lowering
the requirement of significant col- This growth disparity results from the default risk among borrowers in
lateral or qualifying documentation. the fact that large banks in India order to make the market segment
Microcredit institutions offer loans have traditionally found it difficult more attractive for large bank partici-
for amounts as little as 500 rupees, to profitably service the clientele of pation.

In this effort, microfinance institu- women are an essential aspect of the been found that, due to in-group
tions today are pursuing many inno- MFI plan to reduce default risk and peer pressure, there is less incen-
vative methods to try and reduce the thereby bring down interest rates. tive for women to default on a loan
credit default risks associated with when they are involved in a SHG
lending to individuals with low in- Forming customer self-help groups, with women whose credit ratings are
come and minimum collateral. Some or SHGs, is another successful ap- interdependent. SHG members are
of these methods include reaching proach MFIs have adopted for reduc- also able to save and borrow larger
out to households through women, ing defaults on loans. There are ap- amounts than individual custom-
the formation of self-help groups, proximately 20 million women active ers, making the SHG approach very
building personal relationships with in 1.4 million SHGs functioning in rewarding for customers as well as
clients, and using technology to keep India today, which effectively makes MFIs seeking to reduce the risk of
track of individual customer bank the Indian SHG-bank linkage model defaults.
accounts. the largest microfinance program in
the world. SHGs function as a self- MFIs have also realized the impor-
Targeting women for lending pur- supporting entity for the purposes of tance of building close personal
poses has become an increasingly saving and borrowing funds from a relationships with borrowing house-
popular approach among microfi- group fund supplied by a microcredit holds in order to guarantee future
nance institutions in India. MFIs institution. They generally comprise payments. Banks such as ICICI,
have found that offering small loans twenty or fewer members, typically India’s largest commercial bank,
to the women of a household helps to women from poor families, and as employ microcredit agents who are
reduce loan defaults in the long term. a SHG proves capable of managing responsible for marketing loans to
In many rural and poverty-stricken its funds well, it may borrow more prospective customers and keeping in
regions of India, women are solely from a local bank to invest in small touch with borrowing families. Each
responsible for managing the day-to- business or farm activities. Banks agent may be responsible for up to 50
day functioning of their households may lend up to 4 rupees for every households in a region and is respon-
while the men are out working in one rupee that the group fund saves. sible for visiting them once every two
fields and earning a living. It has India’s National Bank for Agriculture weeks or month in order to keep a
been noted that since women run the and Rural Development (NABARD) tab on their account status and evalu-
home, they have a clear grasp of the finances more than 500 banks and ate additional loan requests. Most
family’s expenses and a keen sense for MFIs that provide funding to house- importantly, the agent is responsible
saving money to smooth over daily holds through SHGs. for developing a close friendship
cash flow. At the same time, they are with the borrowers; in many rural
generally more vulnerable to pres- The SHG-Bank linkage model has regions, agents are welcomed as
sure to return loans and are statisti- been phenomenally successful for members of the family and have an
cally less likely to resort to dishonest a variety of reasons, many of which intimate knowledge of the family’s
schemes or loan defaults. are related to psychological group daily financial operations. The tight
dynamics and peer pressure. It has agent-household relationship means
Additionally, women are seen to be
more resourceful with their funds,
and various studies have shown a
positive correlation between credit
availability and a woman’s ability to
undertake an enterprising economic
activity. This has been especially suc-
cessful in rural India, where women
will often use the proceeds of a loan
to start micro-businesses related to
the production of village crafts or
homemade snack foods. This makes
women the ideal loan customer for
microcredit organizations. Repre-
sentative of their domestic units,

that families feel obliged to return
loan payments and are less likely to
default when a “friend” is involved.
The relationship is further beneficial
for the MFI because it provides an
accurate idea of the household’s bank
account and repayment status.
Increased use of technology, as a
means to monitor households’ ac-
count balances and payments, has
also aided MFIs in ensuring that cus-
tomers have a lower incentive to de-
fault. Financial Information Network
and Operations (FINO), a company
under ICICI bank, has developed a
biometric smart card-based technol-
ogy that holds all information about a
customer’s bank account. The cus-
tomer can use this card to access, save
and withdraw funds from selected women are taught about the business reliability of credit supply, women
areas around rural regions. Not only sense that goes into profiting from are going beyond their traditional
does this provide MFIs a convenient agriculture-based ideas. In a number roles and attaining unprecedented
mode of monitoring households with of research studies, it was found that economic independence. Women are
loans, it also makes banking easier for women who had participated in these able to gain wider experience outside
the poor. lessons with their SHG were more their homes, raising the possibility
motivated to make decisions, man- for developing other social and politi-
Finally, many MFIs are now looking age their businesses better and attain cal roles in their communities. Thus,
at sponsoring education plans for a higher level of income throughout women in SHGs are able to contrib-
customers in order to improve loyalty the year. Such lessons also emphasize ute more to their households’ welfare.
and reduce default rates among their the importance of not defaulting on
clientele. Education plans function loan payments to ensure continued Microcredit lending will continue to
at the SHG level, and each group is funding support. be a central element of India’s eco-
given lessons on health, nutrition, nomic and political strategy to tackle
business and money management. The methods that MFIs are using to the growing challenges of widespread
As India’s rural regions are largely lower default rates and ultimately, poverty in a progressive and sustain-
reliant on agriculture enterprises, interest rates on loans, are signifi- able manner. Recent efforts by mi-
cant because they are responsible crofinance institutions to guarantee
for much more than providing mere lower default rates and subsequently
financial support for India’s poor; lower interest rates for loans holds
they are also responsible for the tremendous potential for a mutu-
sweeping socioeconomic progress ally beneficial partnership between
that is taking place within this strata. MFIs and larger commercial banks to
Among the positive changes that mi- reach a greater market segment than
crocredit lending has brought to rural ever before. Microfinance is playing a
India are the growing role of Indian significant role not only in the future
women, changing perception and advancement of India’s goals to allevi-
social acceptance of tribal groups, ate poverty, but also in its financial,
and increased literacy and education socioeconomic and political spheres.
levels among the poor. Perhaps the
most noteworthy of these is the slow Shashwata Narain is a sophomore in
but steady process of female empow- Timothy Dwight College.
erment in India. With the ease and

Energy
Feature
The Next Last Resort

Opportunities in oil sand and shale will be accompanied by serious
political and environmental risks
By Dakota Meyers stability provided by these reserves History
may hinder investment in cleaner
The solution to the Western Hemi- energy sources. Both fuels have been used in various
sphere’s fuel problems may be lying endeavors for ages, though usually
beneath it: oil sand and oil shale. Chemistry without extensive processing. Eu-
Canada and Venezuela contain sev- ropean nations began mining their
eral of the world’s largest deposits of Oil sand is essentially oil-in-sand, reserves of oil sand during the In-
oil sand, widely considered to be the consisting of bitumen, a heavy, dustrial Revolution. In fact, Canada
next generation in crude oil produc- viscous petroleum compound in- began mining its reserves early in
tion. Though estimates of Venezuela’s terlaced with water-enveloped sand the 19th century; however, due to
supply are uncertain and obscured particles. Because, under normal the immense cost of processing the
by corruption, scientists suspect that conditions, bitumen is too viscous to bitumen relative to that of pumping
Canadian deposits could contain as pump, one must either heat the sand liquid crude oil, the North American
many as two trillion barrels of oil, and pump the bitumen or strip-mine oil sand industry lay dormant for
about 18 times Iraq’s known re- it and separate the fuel at another much of the 19th and 20th centuries.
serves. And following closely behind location. Regardless of the method Much of the same can be said
oil sand in the race for viability is oil of extraction, the resulting bitumen about oil shale. Because it burns like
shale. Current estimates indicate that must be further processed before it coal without refinement, oil shale has
deposits in Colorado alone could can be shipped to a conventional oil been mined for centuries. Nations
contain as many as one trillion bar- refinery. began to process oil shale in order
rels of extractable oil, and total U.S. to extract kerosene and similar fuels
reserves likely top two trillion bar- Oil shale is composed of sedimen- in the 19th century. Throughout
rels. Though both substances were tary rock laced with significant the 20th century, government and
previously considered economically amounts of kerogen, a mixture of private enterprise made various in-
infeasible as alternative oil sources, organic compounds from which vestments toward the research of oil
recent fluctuations in the price of hydrocarbons, such as crude oil, can shale as a source of crude oil. Even
conventional crude oil has ushered be extracted. Because the kerogen so, the boom and bust cycle of oil
in a new wave of technology to in oil shale rests in solid rock, it is prices hindered large-scale research
extract crude oil from these sources. slightly more difficult to process than and development, especially in the
Securing a stake in dwindling oil oil sand. It can be mined or pumped, U.S., where low oil prices helped to
reserves has been a key aspect of U.S. but one must heat oil shale for a sig- keep production at a standstill. Why
policy decisions for the last several nificant duration in order to extract go through the trouble of processing
decades. That potentially huge re- fuel. The crude oil that results from kerogen when conventional crude oil
serves of crude oil exist within stable processing bitumen or kerogen is flows freely from the ground?
North American countries could called “synthetic crude,” as opposed
ease political and economic pressure to the “conventional crude” pumped However, the energy crisis of the
on the United States; however, the from natural reservoirs. early 1970s helped to spur modern

oil sand refinement in Canada. The Political, Economic, and in alternative clean energy sources.
cost of producing crude oil from Environmental Implications Second, the refinement of oil sand
bitumen decreased as technology and shale consumes more resources
increased throughout the latter part The United States clearly has great and produces far more toxins than
of the 20th century. And today, with interest in securing long-term oil the refinement of conventional
the days of low oil prices appar- reserves. Estimates indicate that crude oil. This process also uses large
ently in the past, synthetic crude oil known oil sand and shale concentra- quantities of water, which could
production from bitumen has caught tions in North America could meet prove particularly detrimental to the
the attention of the energy market. global crude oil demand for centu- ecosystems of the arid Western U.S.,
Analysts estimate that synthetic oil ries. The vast supplies of oil shale in where most oil shale deposits are lo-
production from oil sand remains the U.S. could relieve the need to use cated. The extensive, new infrastruc-
profitable as long as oil prices exceed global hegemony in foreign policy ture required to efficiently mine the
about $45 per barrel. In fact, when in order to secure conventional oil reserves, while bringing economic
crude oil prices skyrocketed in 2007, reserves and help to lower the U.S. expansion, will be accompanied by
Royal Dutch Shell announced that trade deficit, creating a geo-political environmental disruption. For exam-
it had made an after-tax profit of fairytale: the world’s largest industri- ple, strip mining, a technique often
$21.75 per barrel on synthetic crude al and technological giant could also used to extract oil sand and shale,
oil produced from bitumen; this become a self-sustaining resource can cause particularly severe ecologi-
nearly doubled its worldwide average exporter. The domestic extraction cal devastation.
profit of $12.41 per barrel of conven- of oil would also create jobs and
tional crude. improve the infrastructure of oil Some companies have already begun
shale-rich communities, providing a to develop technologies to reduce
The feasibility of producing synthetic new source of economic expansion. the environmental impact of oil sand
crude from oil shale remains slightly and shale refinement. For instance,
more speculative. Current estimates However, the emergence of oil sand Royal Dutch Shell intends to con-
suggest that crude oil prices would and shale may inadvertently strain struct subterranean “walls” of frozen
need to remain above $70 per barrel certain U.S. foreign relations. Canada water around its in-situ extraction
for extraction from shale to be prof- is already the leading supplier of oil cites, in order to contain potentially
itable. However, this figure repre- to the U.S., exporting about 2 million dangerous petroleum by-products.
sents, in part, the high cost of start- barrels per day, and an expanding However, because of the immense
up capital and could reduce to about oil sand industry will likely cause amount of energy required, the
$35 per barrel in the near future. this figure to grow dramatically. extraction of oil from sand and shale
The development of new technolo- Of course, this would decrease our will likely always have a greater envi-
gies will also lessen this figure. For conventional crude oil importation ronmental impact than pumping and
instance, Royal Dutch Shell recently from Middle Eastern countries, spe- processing conventional oil.
announced that its method of in-situ cifically Saudi Arabia, which exports
extraction, which heats the shale and about 1 million bbl/day to the U.S. Oil sand and shale will provide
extracts oil without mining, could A shrinking economic relationship immense economic and political
remain economically viable even could worsen the already declining benefits to the Western Hemisphere,
if crude oil prices dipped as low as political relationship between the especially to the United States. How-
$30 per barrel. All of these figures, U.S. and Saudi Arabia. ever, this benefit will come at the
however, reflect profitability at full expense of the environment. Thus,
production capacity. Also, they apply Aside from causing political and although regarded by some as the
primarily to the most easily extract- economic change, the extraction of next generation in fuel sources, oil
ed reserves. Thus, the average cost of crude from oil sand and shale poses sand and shale appear, in fact, to be
production will be greater, but likely four key threats to the environ- the next last resort.
still economically viable. ment. First, because of the relative
economic feasibility of extracting Dakota Meyers is a freshman in Bran-
oil from these sources, they could ford College.
provide petroleum for centuries
and consequently slow investment

Culture
Stormy Straits
Despite a painful history, Japan and Korea also share powerful
economic and cultural ties
By Christopher Lee
On February 11, Japanese Foreign ous work conditions. Professor R.
Minister Katsuya Okada delivered J. Rummel, professor emeritus of
a verbal apology for the 35 years political science at the University
of forced annexation that Japan of Hawaii, estimated that at least
had imposed on South Korea. This 270,000 Korean laborers were killed
statement came during a joint as a result. Numerous Korean public
news conference in Seoul held with monuments and historical records
South Korean Foreign Minister Yu were defaced and destroyed, and
Myung-hwan. This marks at least over 100,000 cultural artifacts were
the second formal acknowledge- stolen and transported to Japan. In
ment of Japan’s historical oppres- addition, under annexation rule,
sion of the Korea since then-Prime bridged even today. Thus, the legacy Koreans were banned from speak-
Minister Junichiro Koizumi stated of Japanese occupation is not mere- ing Korean in public and were
in 2001 that Japan’s military had ly a history lesson but continues forced to adopt Japanese names.
caused “enormous damage” during to be a central factor and conten- Meanwhile, the Japanese military
its invasion and occupation of the tious sticking point in Korea-Japan also used Koreans in Unit 731, the
Korean Peninsula. relations, shaping the ever-growing secret human experimentation unit
economic, political and cultural ties in which it conducted vivisections
But why does this apology come between these neighbors. Mitigating and tested a variety of chemical
now in 2010, a full century after Ja- the looming tension and resolving and biological weapons on human
pan formally annexed Korea as part historical discrepancies will be nec- subjects.
of its empire? essary to ensure the sustainability
“
of increased cooperation between
After centuries of uneasy and often the two nations and may serve as a
hostile relations, in 1910, Japan foundation for international stabil-
forcefully overturned the Joseon ity throughout East Asia.
Dynasty (1392-1910) and began its ...within Japan, the
occupation of the Korean peninsula.
Until the end of World War II in
Using Korea as a base for its inva- LDP must perform an
sions into Manchuria and China,
1945, the Japanese Empire exploited Japan engaged in a series of acts in uneasy balancing act
Korea economically, culturally, and
militarily, often through the imple-
Korea that left hundreds of thou-
sands of victims dead and attempt-
to establish positive
mentation of inhumane policies. ed to destroy a national identity. foreign relations with-
Relatively little is known about the During World War II, the Japanese
period outside of East Asia, but the Empire conscripted 5.4 million
out antagonizing the
tragic events that occurred during
that period have left a deep his-
Koreans for slave labor at Japanese political right.
factories and mines under danger-
torical rift that has yet to be fully

right direction toward increased
One of Japan’s most notorious prac- cooperation with Korea on issues Ultimately, Seoul and Tokyo will
tices was the systemic enslavement ranging from bilateral trade to most likely work together in or-
of Korean women for its military regional security. But within Japan, der foster stronger cooperation on
brothels. During World War II, Ja- the LDP must perform an uneasy the issues of containing the North
pan forced roughly 200,000 women balancing act to establish positive Korea crisis and promoting bilateral
from Korea and China to serve as foreign relations without antagoniz- trade. On February 17, they agreed
sex slaves, labeling them “comfort ing the political right. to a joint research project with
women” for its imperial army. Plac- China on the feasibility of a trilater-
ing them in wartime brothels next Another major sticking point be- al free trade agreement for North-
to its infantry units, the military tween Korea and Japan is a dispute east Asia. Meanwhile, officials from
used these women as a means of of sovereignty over Dokdo Island, both countries have been calling
containing the widespread rapes also called Takeshima by the Japa- for the construction of an undersea
by Japanese soldiers that had been nese. Control of this small group tunnel connecting Korea and Japan.
reported on the field. Subjected to of uninhabitable rocks comes with This proposal has been gaining
frequent beatings and rape, an esti- an Exclusive Economic Zone that momentum since Korea and Japan’s
mated 75% of the comfort women encompasses rich fishing grounds collaboration on the 2002 FIFA
died, and most of those who sur- and potential oil reserves. Although World Cup. If constructed, the
vived contracted venereal disease the Japanese Ministry of Foreign tunnel would connect the Korean
and could no longer bear children. Affairs claims that Dokdo was given port city of Busan with the Japanese
to Japan by the Allied Command city of Fukuoka. Busan has already
In 1993, the Japanese government after World War II, no mention of commissioned a task force on the
acknowledged for the first time in Dokdo has been found in the peace proposal, and the two cities are con-
nearly a century that the state had treaty with Japan. South Korea cur- sidering plans to create a unified,
been involved with these brothels rently maintains a physical presence international economic zone.
and provided monetary compensa- on Dokdo, with around 40 South
tion to 285 of the women still alive Korean police on guard. The na- Korea and Japan share a compli-
to testify in court. Subsequently, tional government subsidizes close cated history and an intertwined
however, the ruling Liberal Demo- to a thousand citizens registered as future. Although their historical
cratic Party retracted this apology residents there, and Korean tele- relationship may have been far from
and rolled back payments it had communications firms have built amicable, recent political develop-
originally planned to issue through a wireless phone network for the ments have so far been conducive
the Asian Women’s Fund. Mean- island. to increased political and economic
while, it approved the use of “right- cooperation between the two coun-
wing” public school textbooks that The issue of sovereignty over these tries. Granted, many issues have yet
whitewashed Japan’s sexual enslave- islands has stirred nationalistic to be fully resolved, and domestic
ment of South Korean women. sentiments within both countries. political factions within both na-
When the U.S. House of Represen- Japan’s Shimane prefecture cre- tions strongly oppose any sort of
tatives passed a resolution in 2007 ated a “Takeshima Day” in 2005, compromise that might be seen as
asking Japan to “apologize and stoking Japanese nationalism but a concession. In order to build a
accept its historical responsibility stirring bitter memories across the stable relationship between the two
in a clear and unequivocal manner,” Korea Strait. As secretary-general of nations that will be truly sustain-
Prime Minister Shinzo Abe denied the Democratic Party of Japan last able, however, many more agree-
that there had been any coercion July, Okada asserted Japan’s claim ments have yet be reached.
and answered that the House’s deci- over Dokdo. If Okada now truly
sion was “regrettable.” seeks to foster friendlier relations Christopher Lee is a sophomore in
with South Korea, he may need to Branford College.
By delivering Japan’s latest apol- prepare to tread on some toes back
ogy for the destruction it caused in at home.
Korea, Okada is taking a step in the

Finance
Project Have Hope

A case study of microfinance at work in Uganda
By Lindsey Raymond or fish. After reviewing the loan members of the community and, the
program at the end of its first year, local building industry, as her plans
To most jewelry is an adornment, it became apparent that although to expand her business location
to the women of the Acholi Quarter these women were able to regularly takes place. Project Have Hope now
of Uganda it is a chance for a better pay back their loans, the loans were counts 100 Acholi women as mem-
life. Made out of recycled paper, still too small to enable these wom- bers, but its impact reaches far be-
each bead in a handcrafted work en create sustainable income-gen- yond, assisting nearly 1,500 people
of art and an investment in their erating activity. As a result, Project in Uganda’s Acholi Quarter.
future. The Acholi Quarter is a large Have Hope increased the loans from
slum home to about 10,000 people $175 to between $300 and $1500. In Since micro lending is such a ben-
on the outskirts of Kampala, capital Uganda, where GDP is $300, these eficial activity, why not extend loans
city of Uganda. Project Have Hope loans are a sizable investment. Proj- to all adults? A series of studies has
uses the proceeds from the sale of ect Have Hope has provided loans shown that when women hold assets
the Acholi Quarter jewelry to fund for 65 women in Uganda, including or gain incomes, family money is
a variety of educational and voca- Ayoo Jennifer. more likely to be spent on nutrition,
tional training programs as well as medicine and housing. Studies have
issue micro loans. Ayoo Jennifer used her loan to buy also shown that when men have a
a boda boda, a motorcycle which good crop, more money is spent on
Project Have Hope is a small, is commonly used as a moped taxi alcohol and tobacco. When female
relatively new non-profit organi- in Kampala. Ayoo Jennifer hired farmers are successful, households
zation and part of a new influx of a driver and now earns about $75 spend more money on food. Ef-
“microfinance” organizations. These a month from her small taxi busi- ficient allocation of resources is
programs provide a small loan to a ness. Investing the proceeds of the essential to fighting poverty because
low income entrepreneur in or- taxi business in a simson and gnuts the poorest families in the world
der to assist in a financial venture. farm, Ayo Jennifer also sells pro- spend, on average, ten times as
People receiving microloans have duce in Kampala. She hopes to earn much on alcohol, prostitution, can-
little hope of receiving a loan from a enough money from the produce to dy, sugary drinks and lavish feasts
traditional bank for various reasons. purchase a second boda boda. as they do on children’s education.
Lack of credit history, collateral, Therefore, empowering women
employment as well a deficiency Ayoo Jennifer’s story illustrates the through stimulating economic ac-
in established financial institutions strengths of micro loans. These tivity and education has a powerful
contribute to the need for micro loans give entrepreneurs the tools positive effect on their families as
lenders. In Uganda, most women to support themselves in the future well. Larry Summers, former chief
have no access to banks that extend and stimulate other businesses in economist at the World Bank, wrote
credit. the local economy. For example, that “investment in girl’s educa-
Atim Millie Grace received a loan tion may well be the highest return
Project Have Hope fills this void for to start her own restaurant. Her investment available in the develop-
women in Uganda. Women use the restaurant has a loyal following and ing world.” Clark Boyd, reporter
loans mainly to supplement existing is also hired her to cater special for Frontline, wrote “look around
businesses or start small-scale busi- events. Atim Millie Grace’s restau- the [Acholi] quarter and you’ll see
nesses, such as selling vegetables rant provides jobs for several other many women hard at work, carry-

ing water, making jewelry, breaking ate women is much lower. Project
rock. Some men are working, too. I Have Hope runs an adult literacy
say “some” because there are quite a program from 4:00 to 5:30 pm and a
few guys just sitting in small lean- second class from 5:30 to 7 pm. Due
tos, drinking millet beer and the to the high cost of electricity and the
homemade alcohol that often causes constraint that most students have
outbreaks of blindness. (When jobs or family duties during the day,
Josiah, the cameraman, walked by the window of time to attend school
them, they demanded to be paid is small. Project Have Hope is cur-
to be in the film. Josiah didn’t even rently in the process of installing a
have his camera on.)” solar panel, which would provide
electricity to teach more classes at
Goldman Sachs found, in a 2008 re- night. Project Have Hope also offers
search report, that gender inequality the opportunity to sponsor a child
hurts economic growth. In addi- to attend the two Catholic board-
tion, greater female involvement ing schools, St. Kizito and St. John
in society correlates with a lower Bosco. During elementary school, told her story, she sent her grandson
amount of turbulence and violence it costs $400 to sponsor a child for away to fetch me a Coca Cola from
in a country. According to a 2002 one year at school while the price a nearby shop. The price of this sin-
CIA report on Uganda, only 57.7% rises to $900 once the child enters gle bottle of soda equaled one half
of women in Uganda are literate, a secondary education. Currently, 96 of a day’s work in the brutal condi-
huge disadvantage in meaningful children are thriving in school due tions of the stone quarry where
participation in society. However, to the efforts of Project Have Hope she worked to support her family.”
in the Acholi slum where many and their sponsors. Karen was motivated to help be-
women are refugees from Northern cause “the tragedies inflicted upon
Uganda, the percentage of liter- Basic education is important to them and [the women’s] families
“
empower women, and a first step in the North and their continued
towards economic empowerment. struggles living as displaced refu-
In order to encourage women to gees in a slum outside of Uganda’s
capitol – these women maintained a
According to a 2002 economically prosper, Project Have
Hope also offers vocational pro- freeness of spirit, a way of embrac-
CIA report on Uganda, grams such as a driver’s education ing and appreciating life in spite of
everything that renewed my spirit.
only 57.7% of women programs, computer skills classes,
Rather than dwell on their difficult
tailoring, catering and hairstyle
in Uganda are literate, and salon management. Project experiences, they showed incredible
strength and desire to move forward
a huge disadvantage Have Hope offers tools for women
so that they might improve life for
to support themselves, but it is the
for meaningful par- strength of the women of the Acholi themselves and their families.” This
strong desire to move forward is
ticipation in society. In Quarter that turns these skills into a
a necessary, but often overlooked,
successful source of income.
the slums of Kampala, ingredient for aid in the developing
world. Project Have Hope has been
where many women are Karen Sparacio, founder of Proj-
successful in creating a permanent
ect Have Hope recalls during her
refugees from northern first visit to Uganda “one woman difference in others lives helping
those with a strong inner drive to
Uganda, the percent- described being beaten nearly to
succeed help themselves.
death and then carted by bicycle to
age of literate women escape the war in Northern Uganda.
Lindsey Raymond is a sophomore in
is much lower than the Another woman told me about be-
Timothy Dwight College.
ing held captive by the rebels. As she
national average.
Environment
China’s Pollution Nightmare

Environmental degradation is contaminating the earth beyond China’s
borders, and prospects for the future are grim
By Shiv Kachru year, and nearly 500 million people
Current pollution levels are in- lack access to safe drinking wa-
China is framing the front page tolerable, and leaders who ignore ter. With so many people’s health
story of the 21st century. Bursting these principles will be called to negatively affected by pollution,
every which way in a bewilder- account. health care costs have risen sharp-
ing rush of change and transfor- ly. And the longer these issues are
mation, China’s neck-snapping Yet five years later, clear signs unresolved, the more China will
growth has drawn the attention of environmental progress have become dependent on dirty coal
of the world. But China is already stalled. For the Communist Party, and imported oil, making these
paying the price for its rapid finding a balance between fast issues even harder to resolve.
success. Though the economy is growth and environmental sta-
posting a historic series of double- bility is a daunting task. There is Fraud and corruption have been
digit growth rates, the expansion is no doubt that Communist Party a huge determinant in the cur-
fueled by an insatiable hunger for officials seek a more sustainable rent state of China’s environment.
energy. China’s expansion of heavy growth rate with reduced pollution With many regions desperate to
industry relies almost exclusively levels, but the country’s authori- attract foreign investment, they
on coal, the most available but tarian system is addicted to high often resort to falsifying govern-
dirtiest source of energy in China. growth rates. Economic success ment approval for new construc-
and prosperity pacify the popu- tion sites. “This is definitely a huge
This pollution problem has already lation, provide spoils for party problem,” says Wen Bo, China’s
spread past China’s borders, as members, and forestall growing representative for the California-
sulfur dioxide and nitrogen oxides demands for political account- based environmental group Pacific
emitted from China’s plants fall ability. Economic slowdown could Environment. “Some of the less
as acid rain in Seoul and Tokyo. scare off foreign capital, incite so- economically advanced regions in
Even halfway around the world, cial unrest, and call into question China have been actively working
in Los Angeles, much of the city’s the rule of the Communist Party. to attract investment from over-
particulate pollution originates in seas and other parts of China. But
China, according to the Journal of But the current lack of environ- they don’t have huge advantages
Geophysical Research. mental protection policies already except cheap labor and loose envi-
poses its own threat to the country. ronmental standards.”
Since Hu Jintao became the Com- The World Bank has noted that
munist Party chief in 2002 and 16 of the world’s 20 most polluted China’s energy problem is not just
Wen Jiabao became prime minis- cities are in China. Air and water about the amount of energy they
ter the following spring, China’s pollution has caused thousands of consume; the dirty sources of this
stance against pollution, at least episodes of social unrest. Ambient energy greatly impact levels of
officially, has been clear: China’s air pollution is blamed for hun- carbon dioxide emissions. Coal is
economy must grow at a more dreds of thousands of deaths each the main culprit in China’s in-
sustainable, environmentally-pace.

“
These particulates are tradition- China’s growth and sovereignty.
ally measured in micrograms per
cubic meter of air. According to Chinese officials may have a point:
The World Bank has the European Union, any reading the United States, Britain and Ja-
noted that 16 of the above 40 micrograms per cubic pan are already mature economies
meter or air is considered unsafe. and only began to worry about en-
world’s 20 most pollut- In the United States, the maxi- vironmental degradation after they
ed cities are in China. mum acceptable level is 50. Yet had already polluted themselves
in 2006, Beijing’s average PM 10 to prosperity. But China is still in
Air and water pollu- level exceeded 140, according to its early stages of economic devel-
tion has caused thou- the Chinese National Bureau of
Statistics.
opment. Pollution costs are high
worldwide, but unlike in Western
sands of episodes of Another internal, unpublicized countries, these costs have mount-
social unrest. Ambient report by the Chinese Academy of
Environmental Planning in 2003
ed faster than China’s readiness
to curtail economic development.
air pollution is blamed estimated that 300,000 Chinese die Hundreds of millions of Chinese
each year of ambient air pollution. citizens live in poverty, and for
for hundreds of thou- Many of these deaths can be at- the government, the well-being
sands of deaths each tributed to heart disease and lung of China’s economy is the nation’s
cancer. Another report, prepared top priority. “Typically, industrial
year, and nearly 500 by Chinese environmental experts countries deal with green prob-
million people lack in 2005, estimated that annual pre- lems when they are rich,” men-
mature deaths related to air pollu- tions Ren Yong, a climate expert at
access to safe drinking tion were likely to reach 280,000 the Center for Environment and
water. this year and 550,000 in 2020. Economy in Beijing. “We have to
Chinese officials are arguing that deal with them while we are still
creasingly poor air quality, and it foreign powers play a large role poor. There is no model for us to
provides two-thirds of the coun- in the degradation of the coun- follow.”
try’s energy needs. Though it is try’s environment, and that other Today, China is at a crossroads.
largely abundant in China, coal nations have turned a blind eye Though China’s pollution is al-
emits much more carbon dioxide to their role in China’s pollution ready a worldwide problem, this
than oil or natural gas, and China problem. Indeed, the cheap prod- issue is still in its infancy. China
already burns more coal than the ucts that fill markets in the United has only begun to flex its true eco-
United States, Europe and Japan States and Europe are made pos- nomic power, which could have a
combined. This pollution has had sible through energy-intensive potentially devastating effect on
a sharp impact on the residents factories in China. As the world’s the environment. The decisions
of China’s urban areas, with only appetite for cheap goods grow, the the Communist Party makes today
one percent of 560 million resi- more China will pollute. But this will impact not only China’s future
dents breathing air considered industrial growth attracts new for- but the health and well-being of
safe by international standards. eign capital to China, and Beijing citizens around the world. We can
Of major concern is the particu- has already declared that it will not only watch and wait to see how
late matter in China’s air, which enforce any mandatory limits on Chinese officials will handle one of
includes dangerous concentra- carbon dioxide emissions, as this the greatest crises their nation has
tions of dust, soot, and aerosol would slow growth. They argue ever faced.
particles smaller than 10 microns that developed countries that initi-
in diameter (known as PM 10). ated global warming should find a Shiv Kachru is a sophomore in
way to solve it without treading on Berkeley College.

Culture
A Trickle-Down Morals Economy

An enduring legacy of values in India’s thriving economy
By Corinna Lewis
corruption and extortion that takes
The great civil rights leader Mahatma its villages’ populations, which is
place throughout modern, capitalistic
Gandhi stood for peaceful, non-vio- essentially a market that Gandhi had
India—a problem Gandhi saw and
lent protest, religious tolerance, and always championed, if for reasons
worried about in his time as well.
India’s freedom from foreign domina- of social justice as much as financial
tion. But he also led the Indian peo- ones.
5th Pillar prints legal tender, but
ple toward economic independence—
their fake money is not meant to be
and toward a system of values that From cell phones and cars to soft-
used for bribery. Rather, the notes
would influence their economy for ware, India has harnessed the intel-
look just like money (complete with
generations. Those values included a ligence and energy of its citizens to
an image of Gandhi’s face), but with
breakdown of the rigid class system, make them able producers as well
the value “0 rupees” printed on them
inclusion of rural peoples, a focus on as consumers. It is a nation that has
instead of a real number. The idea is
business within India’s borders, and a raised itself up with education and
that when a person hands a govern-
fierce opposition to corruption. information technology, and, while
ment official “0-rupee” notes as a
Gandhi might not have fully foreseen
bribe, the dishonest civil servant will
In terms of his direct impact on the the significance of the latter factor,
be shamed into better behavior. With
Indian economy, Gandhi organized he always sought improvement in the
the fake money, Indians refuse to be
boycotts of British products, and he former. Ignorance was anathema to
extorted, and they stop the exchange
encouraged Indian men and women him.
in a clever, hard-line way.
to spin their own cloth to wear,
rather than purchase foreign goods. Two specific initiatives taking place
So far, since 2007, 5th Pillar has
He organized protests and strikes by in India right now also speak to
distributed a million notes, and they
urban workers, farmers, and other Gandhi’s spirit and values. The first
show no sign of slowing. For some,
groups of laborers, never forgetting is India’s National Rural Employ-
the project is inspiring because the
the rural populations. In focusing on ment Guarantee Act (NREGA),
organization gives legitimacy to what
India’s ability to raise itself up inde- which offers gainful employment (at
can otherwise feel like a solitary,
pendently—and including all classes minimum-wage or above) for any
and therefore feeble, protest. Now,
of people, as well as women, in that rural household that seeks it, for 100
citizens don’t have to feel completely
vision—Gandhi recognized that his days. The work is on public projects,
alone when standing up to authority
nation could not only be self-suffi- and the wages are fair and supportive
figures that expect to receive bribes—
cient, it could thrive. for families who seek dignified ways
they have a mint backing their cause.
of sustaining themselves. In April
What’s more, the honest man may
Today, India is a democracy of over 2008, the act was expanded to every
now just look down at Gandhi’s
a billion people, with the fifth-largest rural district in the country, where it
smiling face on the phony bill, and
gross domestic product (GDP) in had previously applied to only certain
be reminded of the leader who did
the world. Domestic consumption is ones.
so much to change India, and whose
responsible for roughly two-thirds
influence can still be felt today—be it
of the Indian economy, and rural The second initiative underway is or-
morally, politically, or economically.
areas of the country have seen more ganized by a local non-governmental
economic growth than urban areas. organization called 5th Pillar, led by a
Corinna Lewis is a freshman in Ezra
India’s greatest strength may lie in man named Vijay Anand. The project
Stiles College.
innovative low-income products for seeks to respond to the widespread

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Special: Asia Tomorrow 2010 Conference Issue

This magazine is published Kaiyuan Wang James Zhang

2 B Business Sphere Magazine | Spring 2010

4 Asia Tomorrow Conference

6 Asia Tomorrow Conference

14 Solar Power Subsidies

15 Feature: Architecture in Recession

20 Life Cycle Analysis

Yale College Business Society Staff

Spring 2010 | Business Sphere Magazine B 3

10:00AM - 10:10AM Opening Remarks - SSS 114

1 3 Mason Laboratory (ML)

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See speaker details on page 5.

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For further reading, see “China’s Pollution Nightmare” (p. 32)

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The Forecast for Solar Power

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Architecture and the Recession

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Although the green movement was

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Life Cycle Analysis

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The Next Last Resort

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Project Have Hope

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China’s Pollution Nightmare

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A Trickle-Down Morals Economy

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Spring 2010 | Business Sphere Magazine B 35

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