World Peace Festival” in the Olympic Sta- Dium in Seoul’S Jamsil District on September 16

INTERVIEW INTERVIEW INTERVIEW

Gordon G. Chang DR. Eva Latham Park Young Sun

On China’s Demise Corporate Guri Nature, Culture, and Challenge to the Social and Design Project West Responsibility (NCD) 2015

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Mr. Lee Man-Hee, Founder Pastor Shinchonji Church of Jesus Christ World Ms. Kim Nam-Hee, Chairwoman Peace MANNAM Volunteer Association Festival When Light Meets Light

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Contents CovCoverer StoStoryry Vol. 4, No. 4, 2012 World Peace

P age 8 Festival When Light Meets Light, There is Victory

special feature guri city Page 26 QDr Eva Latham& — Pagea 12 Tim Clark — Page 24 Park Young Sun — Page 29 Michelle Finn — Page 32 Gordon G. Chang — Page 42 David Roodman — Page 50

Publisher: mr. lee Deuk Ho by Priyanka Sharma Editor-in-Chief: mr. lee Deuk Ho remembrance 37 Japanese Firms Consider Moving from China, Eyeing Southeast Asia 16 Living for the sake of others: reverend by David Woo Published by: Asia-Pacific Business Dr. Sun Myung moon (1920-2012) & Technology Report Co. 38 China’s Auto Market Industry: By ronki ram Growing Despite Challenges Registration date: 2009.09.03 Registration number: 서올중. 라00307 by Jin Suk Yang Price: `40, W9,900, US$8.00, CN$8.00, 39 The Transforming Indian Higher Education Sector £6.00, €8.00 leadership Annual subscription fee: W62,000/ by Anuradha Shukla US$62 19 Another star named park rises 40 Potential of Investment in south korea’s political sky in Power Sector in India By victor fic by Anurag Shukla Managing Editor: 41 Future of Nuclear Power in Japan Dr. Lakhvinder Singh 20 Korea’s Presidential Campaign — Dictator’s Daughter vs. Liberals by Kevin Liu Senior Editorial Advisor: By donald kirk 41 Samsung’s Increasing Profile Mr. Chung-Yeon Cho in Southeast Asia Chief Business Development Officer: by Anurag Agnihotri Mr. Kim Cheol Ho Creative Director: diplomacy Mr. dan thwaits 22 Growing Tension in Japanese-Korean Ties technology By victor fic Editorial Advisory Board: 44 E-Books Bring About Mr. Suresh P Prabhu a Renaissance in Reading Former Union Cabinet Minister for Power, by Shamila Janakiraman Government of India business 45 CIOs in Asia Give Priority Mr. N K Goyal to BI, Mobile and Cloud President, Communications & Manufacturing 34 Asia-Pacific Cruise Industry on a Roll by Chung –Yeon Cho Association of India, CMAI By anurag shukla 46 Growing Diversification Dr. Mezyad Alterkawi 35 Growing Affluence in Asia Pacific of Raw Materials Used in Cosmetics Associate Professor, King Saud University leaves USA Millionaires Behind by Shamila Janakiraman Dr. Emanuel Yi Pastreich by Rashmi Gupta 48 Asia-Pacific Undergoing Director, The Asia Institute 36 Growing Ageing Population a Digital TV Boom Mr. Jungsoo Jang in Southeast Asia by Jin- Suk Yang President, Korea Future Institute Mr. Michael Breen Insight Communications Consultants Dr. donald kirk For advertisements Author and Journalist and other business Dr. Eva Latham enquiries please contact: Corporate Social Responsibility Expert 302, 10-9 Myeongneon Dong 1 ga To contact Asia Pacific Business and Technology Report for advertising, submissions, subscriptions or general comments Chongru-Ku please email to [email protected] The views and opinions expressed in the articles are those of the Seoul, South Korea authors and do not in any way reflect the editorial policy of Asia Pacific Business and Technology Report Phone: 822-766-8230 Vol. 4, No. 3, 2012 Email: [email protected] PRINTED IN SOUTH KOREA

cover story

© MANNAM Volunteer Association Mr. Lee Man-Hee, the founder pastor of Shinchonji Church of Jesus Christ, lights the torch at Olympic Stadium in Seoul. This is the first time the torch has been lit inside the stadium since the 1988 Summer Olympics.

BY yong hee kwon World he spiritual yearnings of Koreans can be difficult to Peace fathom.T Just as K-Pop has taken off from Tokyo to New York, Korean spiritual Festival movements draw adherents When Light Meets Light, worldwide over seemingly There is Victory insurmountable barriers.

8 www.biztechreport.com The spiritual yearnings of Koreans can be difficult to fathom. Just as K-Pop has taken off from Tokyo to New York, Korean spiritual movements draw adherents worldwide over seemingly insurmountable barriers. That was sense one received after witnessing the “World Peace Festival” in the Olympic Sta- dium in Seoul’s Jamsil district on September 16. The audience had come prepared for a few hours of singing and fun. They could not have envisioned 100,000 people filling every seat in the stadium, including thousands more on the playing field, marching in elaborate formations, dancing and enact- ing various traditional and cultural performances. The program, a “culture and sports celebration of restoring light,” wound up with men and women’s soccer games, a track meet, basketball, judo, and tug of war matches. In addition, on stage in front of the reviewing area, magicians and ballroom dancers and jazz musicians and a host of other entertainers were performing as well. This World Peace Festival evoked mem- ories. Was it an improved version of the Olympic Games that opened in Korea 24 years ago at this very stadium? During those games in 1988 we saw performances as amazing as the prancing and dancing of © MANNAM Volunteer Association thousands of performers against a backdrop An aerial view of Seoul’s Olympic Stadium during the World Peace Festival. of tens of thousands of people in the stands flipping flash cards of scenes and messages of whatever the South Koreans were selling, from happy school kids to verdant fields. History was repeating itself, perhaps, but on Much of the inspiration comes from a much bigger scale. As during the ‘88 Olympics, many people the Honorary Chairman Mr. Lee Man- were on the field at the recent peace festival. Young people from all over the world hee, who is also the founder pastor of dressed in their traditional colors filled the stadium, flipping cards on cue, forming slo- Shinchonji Church of Jesus Christ. gans and scenes. This whole performance ➤

against one another in peaceful and friendly competition. Indeed, the entire theme of the Olympiad was one of world unity, cen- tering around the idea of Korean reunifica- tion. There were also various cultural performances by MANNAM members such as cultural dances by groups from the Middle East, Latin America, China and India, sing- ers, bands, and magicians. Incredibly, these events seemed to be going on simultaneously. Men’s and women’s basketball teams were playing in courts at both ends of the field. While runners were circling the surrounding track, performers were going through their acts in the middle of the field. Flash cards held by thousands on one side of the stands depicted scenes and slogans, and all the while mammoth television screens captured and replayed action, ensuring that everyone got a chance to see what was going on. The effect was that of a masterpiece of organization, plan- © MANNAM Volunteer Association ning and rehearsal that had gone on for The flashcard team displays the taeguki (Korean flag) and other flags from around the world. months before the day of the festival. The imagination of the planners showed not only their true desire for international lasted for more than eleven hours, from peace, but also the undying ‘can-do’ spirit morning until after dark when the rain was of the incredibly hard-working Korean already falling and pinpoints of lights re- The imagination people. In preparing for the event, they placed the cards. extracted themes from popular and tradi- Much of the inspiration comes from the tional culture in a reflection of the national Honorary Chairman Mr. Lee Man-hee, who of the planners and religious spirit of the Korean people. is also the founder pastor of Shinchonji “One of the most impressive moments Church of Jesus Christ. Mr. Lee is viewed as showed not only was the constant waves that rolled through one of the most renowned spiritual leaders the stadium stands as thousands actively from Korea by Christians all over the world. their true desire for took part in the show,” said one spectator; Despite his busy schedule he sat through “The unison and precision of the perfor- the whole program alongside Ms. Kim international peace, mancer moved all who were watching.” Nam-hee, Chairwoman of MANNAM Volun- The mass-games were envisioned by the teer Association, which collaborated with planners “to demonstrate the unity of all the church on the mission of putting on but also cultures and the capacity of people to cre- “an unprecedented event in Korea where ate peace.” Mannam was responsible for people from all over the world will gather.” the undying, bringing thousands of volunteers not only Shinchonji means new heaven and earth, to attend the festival but also to volunteer and MANNAM means meeting, implying a ‘can-do’ spirit of their time, expertise and enthusiasm in the gathering of diverse figures months prior and in the times needed for In today’s Korea, Shinchonji Church and rehearsals. The campaign for volunteers MANNAM are among the most active orga- the incredibly was all in the name of peace, of helping nizations in the fields of culture and the people in dire straits. Nothing seems to arts. In the recent past they have undertak- hard-working have been overlooked in conveying this en many projects and activities benefiting message. the downtrodden in both Korean society Korean people. “The campaign’s purpose was to raise and abroad. Thus, it was no surprise that awareness for peace that is achieved thousands of foreigners were seen attend- through understanding and appreciation ing the event, both as participants in cul- of diversity,” says Mannam. In pursuing tural programs and games as well as guests watch the event on live telecasts and Inter- that aim, the festival began with the dedi- of honor. Not many associations in Korea net streaming all over the world. Also on cation of a photo project in which a globe can claim this level of support from foreign display was the famed Korean hospitality was unveiled made of “thousands of pieces communities. as most dignitaries viewed the whole show with 3,913 photos of individuals and their To an outside observer such outbursts of from seats along side the honorary chair- sentiments on peace.” The idea, says Man- astounding fervor as those on display at the man Mr. Lee Man-hee and the chairwoman nam, was to form “a representation of in- World Peace Festival represent a significant Ms. Kim Nam-hee in a specially designated dividuals joining together for the peace aspect of Korean life and spirit. enclosure. and restoration of the world.” The program One real question which comes to mind For their respective contributions to the ended in driving rain “with the lighting of after watching such a grand show is how day’s proceedings, both host organizations a hundred thousand lanterns during the Shinchonji and MANNAM – one being a did extraordinarily well. Shinchonji’s con- live performance of the 1988 Seoul Olym- religious group, the other a volunteer as- tribution – the biblical performance – was pics song ‘Hand in Hand,’ accompanied by sociation – were able to attain such an ex- most impressively depicted, being enacted fireworks.” traordinary array of talent on the tracks, on the field by mass-game players with The emphasis on global understanding fields, stages and stands of the event. The cards and flags, and by a 12,000-member was visible everywhere. “The World Peace organizers call it “the world’s biggest flashcard team in the stands. The athletic Festival was not a gathering of nations but peace festival in modern times.” They may aspect of the events, called the Olympiad, of people from all different ethnicities, reli- be right. Millions of people were able to pitted athletes from foreign countries gions and ideologies that strive towards an 10 www.biztechreport.com © MANNAM Volunteer Association Mannam’s International members wave their national flags at Olympic Stadium in Seoul. More than 12,000 international participants took part in the orldW Peace Festival. achievable peace,” says the brochure. The around the world and does diverse volun- alliance between Mannam and Shinchonji teer activities.” deepens the sense of purpose. While MAN- MANNAM’s rise has been no less phe- NAM is a secular organization, its part- nomenal. Since its founding nine years ago nership with Shinchonji strengthens the with a mere 700 members, the MANNAM message of nondiscriminatory acceptance Volunteer Association now claims 70,000 of all cultures, faiths, ethnicities and na- members. “It has emerged as a major force tionalities while providing a religious over- of peace all over the globe, organizing lay that attracts devotees looking for new many peace-promoting activities,” claims hope and a renewed sense of purpose in a the history page of a MANNAM leaflet. world of conflict. For the love of Taegukgi, the Korean flag, © MANNAM Volunteer Association The union of MANNAM and Shinchonji, Mr. Lee Man-Hee, the founder pastor of Shinchonji Jesus and the national flower Mugunghwa (the represents how two different organiza- Christ, and Ms. Kim Nam-Hee, Chairwoman of MANNAM Rose of Sharon), Mannam has emerged as tions working in unison can achieve won- Volunteer Association, watch the ceremonies from the stands. an organization that not only glorifies vol- ders. Many other religious organizations unteerism but also inspires world peace as who were otherwise not part of the festival Most foreigners who attended the fes- the most active Korean NGO on the world were eager to extend their support after tival came away with feelings of having stage. Some have accused MANNAM of be- seeing the sheer force of spiritual energy participated in a great international, inter- ing the front organization for Shinchonji displayed by members of Shinchonji and cultural experience – a one-of-a-kind event to collect funds and recruit new members. the volunteers of MANNAM. – something truly unique. Many confessed But this is not the case, as the nature and After the show many South Korean me- they were not expecting such a grand cul- scope of MANNAM is very different from dia reports quoted a number of foreigners tural treat. that of Shinchonji. Shinchonji has its own about how excited they were to be part MANNAM has become very well-known strong base and thus does not need help of this once-in-a-life-time event. Many felt for its celebrations of patriotic holidays, from any other organizations to attract they had seen something that they would including the national day on August 15 new members. Pastor Lee’s strong spiritual not see again in their lifetimes. The event marking the surrender of the Japanese leadership is the real reason for the fast was also well-attended by foreign media forces occupying Korea at the end of World growth of the church. groups, all of whom wrote interesting re- War II in 1945 and Korea’s freedom after 35 Pastor Lee relies upon his own distinc- ports on the event for publication in their years of occupation. These celebrations are tive teachings to imbue his church with own countries. typically marked by a deep sense of patrio- the dynamism needed to win hearts and Even though Shinchonji’s leader, Lee tism and national pride. MANNAM mem- minds. The most captivating message is Man-hee, is the honorary chairman of bers, on such occasions, dress up in shirts that of peace for all mankind. “Let us love MANNAM, the two organizations are en- displaying the yin and yang symbol of the the global village which gives us light, rain tirely separate entities that operate on en- Korean flag, a symbol that represents the and air of the sky,” said Lee at the World tirely separate mandates. The World Peace ideas of unity, balance and harmony. Peace Festival. “Love is able to make world Festival was “a joint sporting event.” Typical of the reception that the move- peace and restore true light.” No sooner had the festival ended than ment is getting from Korea’s other reli- Mr. Lee sometimes reminisces about his the blogosphere lit up with comments gious originations, there appears to be service during the Korean War as a young about the true nature and impact of the a certain jealousy over the rapid rise of man. “I know well the reality of war as I event, both good and bad. One blogger Shinchonji. The church, founded in 1984, had joined the army to avoid hunger,” found that, “despite the grandness of the has gained members with a basic message he said. “I know very well what mankind event, its long term impact may not be as of love and humanity. According to the wants and needs. I hold this festival to pray big and long lasting as proclaimed by the church, Shinchonji members “pursue and for the realization of world peace.” organizers.” However, the majority of blog- practice love, forgiveness, and acts of kind- That is, without a doubt, a message with gers were appreciative of the effort made ness toward others.” a universal appeal. A message that not even by everyone to do their bit to promote “Currently, Shinchonji spreads the mes- the most hardened skeptic could deny be- world peace and Korean unification. sage of God in more than 300 churches all ing relevant to our world. A-P 11 www.biztechreport.com Q&a Corporate Social Responsibility Dr. Eva Latham BY lakhvinder singh Dr Latham, CEO at the Institute for Contemporary Studies and speaker at many conferences, has had extensive experience as consultant to governments and organizations on different issues. She gives BT her view on Cor- porate Social Responsibility.

Q: In our contemporary ting privacy laws in place. As a result world people are expecting of being able to see and hear every- much of corporations and thing in the world and to connect, to corporations do understand speak out, via social media and participating on Youtube and Facebook, that. CSR is one of the ways etc., the level of consciousness of in which corporations what is happening around the globe are reacting to the new has taken a leap forward and thus obligations expected of them also one’s conscience; the call to be in the context in which they responsible and accountable for one’s operate. How do you see this action as a corporation cannot be de- phenomenon? nied and corporations do understand that. So they are responding, some A: I think it is a very interesting even pro-actively to this “revolution phenomenon which is a result of an of exposure”. increased level of awareness of our collective responsibility as human So what are the consequences beings coupled with the fact that of this new revolution of the world has become a global vil- exposure for corporations? lage. Fundamentally contributing to this is of course modern technol- Well, it means that corporations ogy. The IT Revolution has made have to profile themselves as “good the world more connected than guys” by complying with moral de- ever before, making information mands from the context in which available at the click of a mouse they operate. A carefully built com- or fingertip. We now not only can pany profile could be shattered in the hear about situations, we can also blink of an eye via social media if one see situations on our TVs and mois not in line with the moral expecta- bile phones all day long; anyone can tions and the ethical standards of the produce information and send imag- global village. Corporations do un- es the world round, and as the saying derstand that and are making great goes, “One image is thousand times efforts to the cause of human dignity. stronger than words”. Secondly, As a matter of fact it is nothing new the continuous development of so- for them. cial media as a consequence of the IT revolution has brought with it You said that CSR is nothing exposure of everyone to everyone. new for corporations. Could Though in itself a positive develop- you explain? ment, it has its downsides: one is no Yes. If we see corporations as en- longer master over one’s situa- tities producing a product, then we tion. Not only individuals but could compare them with entities also corporations have which were producing products way become vulner- before the industrial revolution. In able in this those days the entities were a commu- sense. Many nity of people who not only produced © Eva Latham countries are a product and taught their workers to Dr Eva Latham, international consultant for public and corporate governance. therefore put- make the product, but it was also the 12 www.biztechreport.com is happening in corporations can easily be accessed, people can get to know what they did not know. The information of despi- cable behaviour by corporations, exposed especially by the social media, has grown exponentially since the IT revolution. Not only governments but also corporations are held to the high standard of human dignity. There has been an increasing demand in society – after WWll - for human dignity for all in the global village. For corporations it means there is a call for them to go back to their roots. What do you mean by the increasing demand for human dignity after WWll? It would take some time to explain this thoroughly and give an in-depth analysis with examples worldwide that underpin my view. But let me try to be short and clear in the context of this interview. Af- ter WWll certain mechanisms were put in place which were in themselves huge steps for humanity. Implementation of these mechanisms created a new world order and a new civilization: the world © Eva Latham Dr Eva Latham with Martin Luther King lll and former U.S. President Bill Clinton celebrating Martin Luther King Day. went from exclusive thinking to inclusive thinking. The United Nations was established as a platform and the Universal life style of the entity to take care of every- Declaration of Human Rights, the values one in the community, to look at the needs and norms upon which it functions, was of the community and give help where it Corporations proclaimed. The aim was to make this was needed; it was a people-centered en- world a better place by having a frame tity for the good of all. Let me put it this of reference for inclusive thinking, and way...the focus was not so much primarily have to profile a platform to debate issues and interest on making “profit”, but more on the well in that regard. The United Nations came being of the community, the inclusiveness, themselves as into existence in October 1945 and the without which the entity could not exist. Universal Declaration of Human Rights in Think for instance how the guilds operat- “good guys” by December 1948. Since then the world has ed. So in this sense the predecessors of our been becoming more and more aware of modern corporations were always rooted complying with its obligation to these set of values. Call in society and did the good for the benefit them moral or ethical values if you will. of all. moral demands These values are people-centred and are How did this disappear? grounded in the dignity of the human from the context in race, the people. The Charter of the UN This sense of inclusiveness disappeared starts with the sentence: “We the peo- with the industrial revolution when profit ple...” not we the Catholics, or the Bud- became more important than people and which they operate. dhists or the Europeans ... These 3 words their well being. The contributing factor express the turning point of thinking was the mobility of people and the devel- namely from exclusion to inclusion: we opment of cities, which made face to face are one people, one humankind. Ground- contact decrease. Relationships became to the mortgage market, which were actually just junk products intentionally devel- ed in the belief in the inherent value of more anonymous. With that change, the the human person, the message is that all responsibility of the producing entity for oped on the basis of greed and not with the intention of making a good product for the that contributes to enhance human dig- its workers, and the community in which nity must be done and all that destroys well being of the people and the reputation it operated, also disappeared. As the enti- human dignity must be eliminated or of the corporation. ties of production became more complex avoided. This message has ever since been and more anonymous, there was an almost So on the roadmap entering our modern implemented with growing success. It is complete negligence of responsibility for times, some entities, now called corpora- a project developing steadily, but there workers by corporations. Labour Unions tions, changed from people-centred to is also resistance the world over, because took over this responsibility for the well product-centred to only profit-centred to of ignorance, ethnocentrism, power hun- being of the workforce. I would call it (on a greed-centred. Owing to the awareness of ger, greed, etc. The UDHR could be seen conceptual level) a sort of compulsory “out- human dignity in our modern times, there as a moral contract between the people sourcing” of responsibility. is no acceptance of corporate behaviour and their government requesting govern- And as time passed, the focus of corpo- based on greed. Corporations are exposed ments to honour the dignity of the peo- rations not only changed from people to - more and more by social media - and their ple. This contract, though all countries profit, or to product for only profit, but as reputations are damaged by this behav- are signatories to it, is not binding; it is a the raw face of capitalism took front seat, iour. Society did not always hold corpora- strong moral appeal. The decolonization greed became more the focus than even the tions responsible for their actions, simply of Africa, for instance, is a direct result of product. An example we have recently ex- because one does not know what one does this message where people at last had in perienced is the bank products introduced not know. Now that information on what the UDHR a weapon to demand their ➤ 13 www.biztechreport.com Q&a a mouse (literally a fingertip!), connecting people primarily on issues, irrespective of the traditional borders, beliefs, or national identity, and thus transnational organizations should have the same values in any country they are operating; d) the labour force that enter the organization comes with a sense of expectation that human dignity will also be respected in the organization and even with the expectation that the organization they work for does not do what governments are forbidden to do, thus they are expecting a continuation of the values of the society in the organization. As corporations operate in societ- ies there should be a balance between the pursuit of values in society and in corporations. It is a continuum. After WWll civilization took a turning point, as I mentioned before, and the world community accepted the UDHR as its common frame of reference for behaviour of governments towards its people. Corporations function in a society, so there can be no logical reason to exempt them from being held to the same standards of human dignity the leadership of the country is held to. The UDHR, being that com- © Eva Latham mon standard for governing society, could Dr Eva Latham at the United Nations with Kofi Annan, UN Secretary-General, to make a statement on the status of women. be the same common standard for corporations operating in a society. It is the most equal rights from the colonizing powers. A perfect Private Public Partnership! There- more recent massive movement of people fore the CSR of corporations should be demanding their human dignity could be In my book based on the UDHR seen in what is called the “Arab Spring”. But also in the field of gender issues, child Did you implement your vision in rights, environmental issues, etc., there is “Dignity Factor and organizations? an increasing awareness of the dignity fac- Organizations” I Yes, I did. Of course one can only imple- tor. All over the world one can see people ment that aspect that is relevant to the or- standing up for their dignity. plead for the same ganization. Nevertheless, the organization So the UDHR brought about can make the UDHR their vision and conse- quently formulate their mission statement awareness and movements for frame of reference based on that. Grounding the CSR vision of human dignity? the Corporation in Human Rights means Yes! In fact the UDHR is a frame of refer- for organizational that the organization’s mission is the pur- ence for ethical behaviour of governments suit of human dignity. All behaviour that towards the people. It is the standard of behaviour as does not contribute to that mission should civilization. As I see it, there is no reason it not be undertaken or should be corrected. cannot be applied to organizations seeing it is in place for It is fantastic to see how motivated corpora- as a contract between corporations and the tions become when they put their respon- context in which it operates. I wrote a book governments: the sibility in the framework of the UDHR. explaining this to corporations. They could use this as their vision on CSR. It fits perfect- How did you go about writing ly, it is concrete, concise and understand- UDHR. your book? able, and moreover it is the international I have written it on the request of CEOs standard for human dignity. My experience and after debating issues with organiza- is that corporations do want to be respon- frame of reference is necessary for corpo- tions who I worked for as consultant. I sible and accountable, but it is not easy in rations. Society at large has changed in wrote the book long before CSR became all situations to rethink how to do things. many ways: a) under the influence of the a household word. After researching sev- The UDHR applied by corporations could be Universal Declaration of Human Rights, so- eral situations in corporations and analyz- very helpful, which I explained in my book. cieties the world over are transforming and ing the issues on the table at that time, I Could you explain how you becoming fundamentally more in line with came to the conclusion that the solution the values and the philosophy the declara- for many problems is a very simple one envision extending the UDHR to tion is rooted in, instead of the values of and at the same time, as it was so simple, see it also as a contract between a religion, or tradition, etc.; b) citizens are no one thought of it, I suppose. The issues corporations and their context? holding their governments responsible for at hand in the organization were all in es- In my book “Dignity Factor and Orga- delivering on the declaration, owing to an sence, on the conceptual level, a lack of nizations” I plead for the same frame of increase in awareness of their rights; orga- human dignity in the organization culture. reference for organizational behaviour as nizations are embedded in the society and Inside the organizations there were issues is in place for governments: the UDHR. cannot be exempted; c) modern technolo- of leadership, relationships, conflicts of in- There are various reasons why this same gy has brought the world under the click of terest, gender, diversity, environmental is- 14 www.biztechreport.com sues and issues of earth resources, but also issues of corruption and integrity. Outside the organizations there were issues related to how the society perceived the organization and the reputation of the organization in the community. After analyzing the situation I brought it all together with the solution in a little less than 80 pages. The solution for CSR is UDHR as the vision for corporations. The rest is common sense. Everyone knows that profit is good, but greed and destroying the environment are wrong. For the diehards that do not com- ply, rules and regulations need to be in place. I have seen corporations with a huge amount of text declaring their CSR vision, but their practice was not there. Besides, nobody knows in the end what it is about when a vision has to be that many pages. It becomes too complicated, which means it is not an invitation to action. Too much talk!! Too little common sense! I worked for a CEO who was Catholic and he told me after a coaching session: “I got it, my mission statement will be the 10 commandments! Yes, that is short and clear!! But, not everyone in his corporation is Catholic, so he created another problem! Luckily he had a © Eva Latham sense of humour and did not see himself Dr Eva Latham with U.S. congressman Eni Faleomavaega in Mongolia to speak at a conference on security in the region. as an evangelist to covert the organization, but a CEO for all, regardless of creed. take their CSR. Global compact has many I am of the opinion that in order to get all corporations joining in - not only talk- members and it is a good initiative. Asia ing the talk of CSR, but also walking the I am of the opinion also has organised itself on this issue and walk – CSR must be kept inclusive, simple has its own network on CSR. The growing and transparent. So my standpoint is that demand of society that corporations fulfil all corporations should become signatories that in order to get their CSR has also triggered lawmakers to to the UDHR, make it their vision – the introduced new laws. In the USA, the Dodd- pursuit of Human Dignity - and base their all corporations Frank Wall Street Reform and Consumers mission statement on that. In doing so cor- Protection Act (Financial Reform Act) of porations Keep it short and simple: KISS! joining in - not only July 2010 oblige companies to disclose to the SEC, the source of minerals used in Now there are many talking the talk their products such as tin ore (casserite), developments in the field of CSR. coltan, wolframite and gold. The reason What could you say about this? of CSR, but also is, rightfully so, to avoid companies buy- I am aware that the developments in ing these minerals from rebel groups in CSR are overwhelming in the sense that walking the walk – the Congo. There are many developments there are many definitions, even mutually which are very encouraging and which excluding views, many regulations, many CSR must be kept show the good will of some corporations. methodologies, many questions as to what Do you have hope that CSR will constitutes CSR and even more question inclusive, simple be reached by all corporations? marks than answers. There is also an increasing awareness of Of course the world cannot be changed governments towards CSR which is a posi- and transparent. between sunrise and sunset, but the will to tive development. Denmark, for instance, go to a new dawn has to be made concrete has recently introduced a law compelling and measurable. The greed has to be re- corporations to add a paragraph on CSR to to do!!CSR is a need! versed where it is present and corporations their annual report stating what the corpo- The European Commission in October have to not only look at their short term ration is doing and why, and if the corpora- 2011 published a new policy on CSR, an ac- goals, but also at their long term needs. I tion is doing nothing, well then why not. tion agenda for 2011-2014. The agenda cov- am confident that one day in the near fu- Many corporations are doing that without ers eight areas. A report recently published ture we will say that “morning has broken being compelled by law. What I notice is (September 2012) calls for a “European like the first morning” and like centuries that some corporations confuse donations multi-stakeholder (not only shareholder) ago inclusiveness will become a lifestyle to charities or sports with CSR. That is not platform on CSR in relevant business sec- for corporations, where CSR is as normal the same. CSR goes deeper than donations. tors. In 2006 there was the start of a “Euro- as grandma’s apple pie. Until then there is I would say to make a comparison, CSR is pean Alliance for CSR. KofiA nnan, former much innovative work to be done to get ev- the oxygen of the corporation, a condition Secretary General of the United Nations, eryone, not only corporations, to think out sine qua non in order for the corporation founded the Global Compact just before he of the traditional box. A-P to function in a modern society and fulfil left the UN. The Global Compact, based on the call for dignity...donations are not that 11 principles - of which some come from Dr Latham can be reached by email: compelling! It is nice to do, but not a need the UDHR - encourages corporations to [email protected] 15 www.biztechreport.com Remembrance

© Universal Peace Federation Sun Myung Moon, the True Parent of Heaven, Earth and Humankind Universal Seonghwa (Ascension) Ceremony (Cheongshim Peace World Center, South Korea) More than 35,000 mourners bade a final farewell to the Reverend Dr. Sun Myung Moon. The ceremony was broadcasted live to 194 nations worldwide. Living for the Sake of Others: Reverend Dr. Sun Myung Moon (1920-2012)

by Ronki Ram

he Rev- erend Dr. Sun Myung Moon will be remembered passionately by Tthe coming generations for his concerted efforts towards building a viable peace and harmony in the world. He was, in fact, an angel of peace, family unity, and inter-faith dialogue who invented new traditions and ways to organize univer- © Universal Peace Federation sal gatherings of diverse religions/faiths in Reverend Dr. Sun Myung Moon’s casket being transported to the burial site as his wife, Dr. Hak Ja Han Moon, follows. the contemporary world within the forums of UNO and without for the sole purpose of inexplicable nature. He used to say, “If you know the mysteries of complex universe learning the basic lessons of living together empty your mind and receive nature into around us, Father Moon keenly urged his harmoniously and with compassion for one your entire being, there is no separation be- followers to get closely connected with the and all. Father Moon was not an armchair tween you and nature. Nature comes into nature. “Nature creates a single harmony philosopher who philosophized idyllically you, and you become completely one with and produces a sound that is magnificent in the realm of mere dreams and thoughts, nature. In the moment that the boundary and beautiful. No one tries to show off and but a karmayogi (a man of action) who between you and nature disappears, you no one is ignored; there is just a supreme firmly believed in practical actions now and harmony. Whenever I found myself in dif- feel a profound sense of joy. Then nature be- here in the real world of our day-to-day ex- ficulty, nature comforted me; whenever I istence. comes you, and you become nature”. Father collapsed in despair, it raised me back up”. Reverend Dr. Sun Myung Moon was no Moon was thoroughly convinced that “Ev- And it is in the name of this benevolent na- doubt one of the greatest spiritual leaders erything around us was given birth through ture called God that Father Moon wanted and champions of world peace in our times. a combination of forces so complex we can- to create for us a world of perpetual peace He is affectionately known by millions of his not even imagine it. These forces are closely and harmony. The time is not far when the followers and devotees as “Father Moon.” related to each other. Nothing in the uni- world will come to realize and appreciate Father Moon attached his life-long goal verse was conceived outside the heart of the genius, sincerity, humility, selflessness, of world peace and the permanent faith in God. The movement of just one leaf holds and true love of Father Moon and the driv- loving God with the bounties of simple but within it the breathing of the universe”. To ing force of nature behind what he was 16 www.biztechreport.com striving hard to achieve and accomplish during his given limited life span: universal world peace and one human family under God. Father Moon dedicated his entire life for bringing peace in our contemporary world and deeply touched hearts of the millions. He passionately taught the lesson of world citizenship and lived the life of a true world citizen. His philosophy of universal peace and world citizenship is vividly reflected in his life-long efforts towards winning the heart of others, including his enemies and strangers. In his own touching words “At times I would simply go for a while in an area of Shinagawa where poor people lived. I slept with them, using rags for cover. On warm sunny days I picked lice from their hair and ate rice with them. There were many prostitutes on the streets of Shinaga- wa. I would listen to them tell me about themselves, and I became their friend without ever drinking a drop of liquor. Some people claim they need to be drunk in order to speak candidly about what is on © Universal Peace Federation their mind, but that is just an excuse. When Reverend Moon giving spiritual guidance to believers in 1972. these women realized that I was sincere in my sympathy for them, even without drink- 3) building a culture of service, reconcili- ing any liquor, they opened their hearts to ation and partnership; 4) revitalization of me and told me their troubles”. Father Moon had the United Nations. The UPF’s many peace Father Moon had the charisma to win initiatives include efforts to establish an over all. He taught his followers the indis- interreligious council at the United Na- pensable lessons of loving one’s enemies the charisma to tions; regional and national peace coun- and living for the sake of others. He always cils; peace-building initiatives in the Mid- used to emphasize learning to live for God win over all. He dle East, Northeast Asia/South Asia, Africa, and His People, and striving hard to over- and the Americas; the promotion of the come selfishness. For the purpose of living taught his followers Bering Strait Peace Tunnel; and, the World for the sake of others, Father Moon used to Peace Blessing. The idea of an Interreli- stipulate on the need of working hard in the indispensable gious Council at the UN was first advanced one’s life. He once said that “I did not spend by the UPF Founders, Rev. Dr. and Mrs. Sun all my time roaming the hills and meadows lessons of loving Myung Moon, in August 2000. Since then, and playing. I also worked hard helping my there has been a steady development of old brother run the farm. On a farm there one’s enemies and both local and international initiatives to are many tasks that must be done during a garner support for this idea among govern- particular season. The rice paddies and fields living for the sake ments. A number of regional and national need to be plowed. Rice seedlings need to be interfaith councils have also been created, transplanted, and weeds need to be pulled most recently in Thailand. … After the seeds are planted, the furrows of others. UPF considers peace as positive, holis- need to be weeded at least three times, and tic and indivisible. It believes that “we are this is back-breaking work. When we were one human family created by God. The finished, we couldn’t even straighten our highest achievements of men and women Family Federation for World Peace and Uni- backs for awhile”. Father Moon combined are rooted in spiritual and moral develop- fication), interfaith service group (the Inter- hard labor with his mission of world peace ments. The family is the ‘school of love in such a manner that it became a new prin- national Relief Friendship Foundation, and and peace’. Peace comes through dialogue ciple of peace to bring harmony through Religious Youth Service), and various print, and cooperation. Service to others is the hard work, family unity and living for oth- electronic and digital media outlet publica- foundation of reconciliation”. UPF works ers. The roots of peace, according to him, are tions. to achieve these goals with a special focus to be searched for at the family level and in The Universal Peace Federation (UPF), on interfaith dialogue, peace education, hard-working, selfless living. For him, the an NGO in special consultative status with and service to mankind. It believes that in- parents represent the present, the children the Economic and Social Council of the terfaith dialogue and cooperation through the future and the grandparents the past. So United States, is a global association of conferences and forums allow participants it is only when the grandparents, parents, conscientious individuals and committed to share diverse aspects of their rich cul- and children live together, said Father Moon organizations dedicated to the noble cause tural heritage, sacred scriptures and tradi- that the children can inherit all the fortunes of building a peaceful world, where each tions that benefit the entirety of mankind. of the past and present. To love and respect individual can fully realize her/his poten- Father Moon sponsored thousands of such one’s grandfather is to inherit the history of tial in a peaceful way while living together conferences on world peace, family and in- the past and to learn from the rich experi- with others in freedom, harmony, and co- terfaith dialogues in different parts of the ence of the past. operation, with prosperity for all. Dedicat- world. The UPF participates each year in Peace can not be built in a day. It requires ed to build a peaceful world centered on the UN’s World Interfaith Harmony Week, continuous efforts on our part. For a peace universal spiritual and moral values, UPF International Day of Families, International to become reality, Father Moon founded programs focus on four core areas: 1) build- Day of Peace and Women’s day. For the UPF various non-profit international organi- ing of strong, healthy families; 2) promot- marriage, parenting, and the family are the zations (Universal Peace Federation, and ing interfaith harmony and cooperation; foundations of human development and ➤ 17 www.biztechreport.com Remembrance

Father Moon envisioned a peaceful world devoid of territorial boundaries, conflicts and wars. He did not want that sons and daughters of God suffer the wars of the sovereign nations.

they function as building blocks of universal peace. Peace begins in the hearts of individuals and it gets nurtured by loving and stable families at home before it spreads across the entire globe. The message of Fa- ther Moon was very simple and lucid: live for the sake of others. Father Moon envisioned a peaceful world devoid of territorial boundaries, conflicts and wars. He did not want that sons and daughters of God suffer the wars of the sovereign nations. He did not find any meaning in diplomatic strategic alliances and divid- © Universal Peace Federation ing the world in mindless power hunting Revered Dr. Sun Myung Moon’s official portrait as displayed at the Seonghwa (Ascension) Ceremony. opposite camps. He did his best to help the pain and sufferings of all of us and wants rallies, international leadership conferenc- world wriggle out of the sinews of the ‘not to redeem and liberate humanity as soon es, platforms of the UNESCO and UNO, and so-cold’ cold war with love and peaceful as possible from the pangs of distrust, fear, Ceremonies of the Blessing of Marriage. He ways of persuasion and inculcation of the war and cruelty. His God is a working God, made the goal of world peace as the most everlasting message of interfaith harmony who lives amidst his people. His God re- important task of his life. As a true father, and world citizenship. He wanted to replace sides in peace and the only way to realize Reverend Dr. Moon got tremendous support the current world of sovereign nation states Him, according to Father Moon, is to build with one in which people could live as citi- from his loving family and all of his follow- a peaceful world of fellow loving citizens. ers. Father Reverend Dr. Sun Myung Moon zens of one world. For him nations and na- He also explained ‘human responsibility’ as tionalities teach nothing but complex rules and Mother Dr. Hak Ja Han Moon personify the striving for peace and the realization of an ‘ideal couple’, and ‘true parents’. of the grammar of war and deceitful di- God. It is here in the very context of human plomacy. A world beyond the narrow legal For times to come, the institution of UPF, responsibility that Father Moon’s principle the principle of ‘one human family under boundaries of statehood, ethnicity, nation- of living for the sake of others makes an God’, ‘living for the sake of others’ and a ality, religion, power politics and strategic absolute sense. He never felt tired talking world of perpetual peace and harmony will alliances was his most desirable dream. He about the image of God who always worked remain the finest legacies of Father Moon. placed God in the centre of his envisioned for humanity and peace. Even in his ripe age world of peace and harmony. of ninety-plus, many witnessed him talking The world will remember him for ever for Father Moon told us in very simple words day and night ceaselessly about God, peace, his life long dedication to peace and human who God is. He explained ardently to his one human family under God, universal unity. I have had the honour and privilege millions of followers all over the world how brotherhood and interfaith harmony. He to sit in his august company during his 93rd God is doing. Moses told humanity that was eager to build a peaceful world in his birthday celebration at Peace Palace (Cheon there exists a God that governs the cosmos. very life time. He wanted to create a peace- Jung Gung) up in the mountains east of Jesus told the world that God is father. But ful world in the real image of the abode Seoul in the forenoon of January 24, 2012. it was Father Moon who told the world how of God, facilitating each and every one of Ambassador Krishna V. Rajan of India, in his God is doing. He brought God near to man- us to recognize God as Father and all of us congratulatory message on the auspicious kind. Father Moon’s God is not the one who as his children. He tried his level best to occasion, said that “Father Moon’s simple sits on a throne in distant heavens. On the bring people together in as diverse fields as but powerful message of boundless love contrary, He is the one who always feels sports, spiritual conclaves, peace meetings, and unconditional compassion, of service 18 www.biztechreport.com leadership

and sacrifice, of family values and spiritual leadership, is like a light- house which beckons the world”. The Another Star Named Ambassador continued, “His answer to conflict is the realization that we are one human family created by Park Rises in South God. Living for the sake of others is the only road to real happiness”. Father Moon’s birthday celebrations Korea’s Political Sky in January 2012, coinciding with the Chinese New year holidays celebrations, brought together over 200 participants from 72 countries of the world. To celebrate the auspicious day of Fa- ther Moon’s birthday, the UPF organized an international leadership conference at Seoul (January 21-25, 2012). It was during this conference that I had the rare opportunity to listen to the engaging lectures of Rev. Hyung Jin Moon, UPF International Chairman (appointed by Father Moon in 2009 as the one chosen to represent him) and that of Dr. Kook Jin Moon, Chairman of the Tongil Foundation, Korea, who deliber- ated at length on “Peace and Security in East Asia”, one of the two core themes of the conference. Dr. Kook Jin Moon was generous enough to provide me some time from his very busy schedule to talk on various aspects of peace in East Asia, which I later published en- titled Envisioning Peace and Prosper- ity in Northeast Asia in the Asia-Pacific © City daily Business & Technology Report (Seoul) Ms. Park Geun-hye addressing a media conference in Seoul. Vol.4, No.1. 2012, pp. 26-9. This conference also provided me a rich opportunity to meet various Ambassadors President Park. The incident occurred at the for Peace of Father Moon from almost by Victor Fic National Theatre. With the country’s first all parts of the world, discussing the lady dead, the young Park bravely stepped ways to bring peace and harmony in he surname Park may be one into a new role. Then her father suffered as- the world. The central themes during of the most common encoun- sassination on October 26, 1979 when Kim all such discussions were the vibrant tered in South Korea, so if you Jae-kyu, the head of the Korean intelligence service, pulled the trigger on his own pis- ideas and teachings of Father Moon say it in isolation to a local con- versation partner, it may draw tol. This double loss has won Ms. Park some and his various ongoing peace projects a blank. But if you mention it with the measure of public sympathy. in the world. Father moon was indeed Tword “president” in front, you are likely Concerning her education, Park gradu- a Messiah of world peace who sincerely to get a strong response from your friend. ated from Seoul’s Seongshim High School wanted this world to become the most Some South Koreans idolize the man who in 1970, then earned an undergraduate conducive place for everyone to real- served in the Blue House from 1961 to degree in electrical engineering from So- ize his/her potentials to the maximum 1979 and credit him with advancing the gang University in 1974. She has also been with an ultimate objective in mind to economy. Others revile him for prioritiz- awarded honorary Ph.Ds from the Chinese grow peace. In his own words: “I have ing industrialization ahead of democracy Culture University in Taiwan in 1987, the lived my life with just one thought: I while a third camp praises his economic the Korean Advanced Institute of Science wanted to bring about a world of peace, policies, even as they denounce his dicta- and Technology in 2000 and from her alma a world where there are no wars and torship. But be sure that everyone articu- mater in 2010. where all humankind lives in love”. It lates an opinion. Is politics in the family genes? Park was would really be impossible to soon re- These days, the attention is focused not chairwoman of the conservative Grand Na- place Father Reverend Dr. Sun Myung just on him, but also on his daughter, name- tional Party (GNP) between 2004 and 2006 Moon, the angel of peace, who had left ly Park Geun-hye, who is seeking to become and then in the years 2011 and 2012 (the for his heavenly abode on September 3, the paramount leader of the Republic of Ko- party then altered its name to the Saenuri 2012. Let’s pray for his holy soul which rea in this year’s national election. Who is Party in February 2012). Park has served will keep guiding the whole world to- she and what can be said about her as an five terms in the Korean NationalA ssembly. wards his pious mission of peace and overview? What, then, are some of her career high- one human family under God. A-P Park was born on February 2, 1952 in lights? Daegu. She was the first child of future In 2002, her party tried -- but failed -- to Writer is ICCR Chair Professor of Con- president Park. Her younger brother is Park impeach the incumbent left wing presi- temporary India Studies Leiden Univer- Ji-man and her younger sister is Park Seo- dent, Roh Moo-hyun. Plus, it was revealed sity Institute for Area studies (LIAS) & young. Her early life was painful. Tragically, in 2004 that the GNP’s previous candidate International Institute for Asian studies on August 15, 1974, her mother was shot for the presidency, Lee Hoi-chang, had been (IIAS), Leiden, The Netherlands. He can to death by Mun Se-gwang, a Korean born embroiled in a bribery case two years ear- ➤ be reached at: [email protected] in Japan, who was apparently trying to kill lier. The GNP was heading for a major 19 www.biztechreport.com LEADERSHIP set-back in the 2004 general election. But nalizes her that she is the daughter of a dic- doesn’t seem inclined to judge Park Geun- that year, Park was appointed as the party tator. “She does not have any liability in le- hye solely based on her father’s record. She chairwoman and spearheaded its election gal terms. But politically, she is responsible probably would not be involved in politics effort. Although the GNP lost its majority in for what her father did regarding human if she weren’t Park’s daughter, but she now the assembly, it still held 121 seats. Many rights abuse. This is a bit of a cultural mat- has a political track record in her own right hailed it as a victory of sorts given the ad- ter too. Westerners may not be able to un- and South Korea has changed dramatically verse environment -- and lionized her stew- derstand this situation.” Plus, “Due to politi- since Park was in charge. In my view, her ardship. Also, she was instrumental in see- cal considerations, that is, to receive more lineage provides a mixed impact on her ing the GNP triumph in local elections. votes from the young generation and liber- prospects.” In fact, it was during the elections for re- als, she is in a sense forced to apologize.” Hong pegs Park as definitely to the right gional assemblies in 2006 that Park showed But Hong deems the situation rich in of center. “It is true that her policies...seem how the fire of politics burns in her belly. irony. “Yes, it is a big contradiction. Hu- to be located at the center-left” such as “her On May 20, Ji Chung-ho, a man who already man rights are valuable for all human be- belief in economic democratization and life had racked up eight prison convictions, ings, but the left and liberals never criticize cycle-fitted welfare programs. But from a slashed her face with a knife. He made an North Korean human right problems. This comparative perspective, she is more cen- 11-centimeter wound that landed her in is why people like me strongly argue that ter-right than other candidates...economic surgery. When she came out of it, the first they are following North Korea without any democratization may be a left issue, but in thing that she said to her secretary was, proper criticism”. the political economic environment in con- “How is Daejon?” It helped to propel the temporary Korean society, every single can- GNP candidate into the mayor’s seat. This Another voice on the matter is Scott Sny- didate has to say economic democratization in part gave Park the nickname “Queen of der, the senior fellow for Korean studies at anyway. So it does not mean that Park is left Elections”. the Council on Foreign Relations in Wash- or center-left.” Snyder, however, finds that One noted commentator on Park is Hong ington. He notes in a contrary vein that, she is “center right on most issues, but she Sung-gil, Professor of Public Administration “Progressives are trying to make her father appears to have taken a progressive stance and Public Policy at Kookmin University. He an issue, and his record is certainly subject on welfare reform and economic distribu- fields the question of whether or not it pe- to serious criticism, but the Korean public tion issues, which are central to her politi-

Korea’s Presidential Campaign — Dictator’s Daughter vs. Liberals

dent, possessed with all the powers of the more than 18 years until his assassination By Donald Kirk police and intelligence agencies, will want by his intelligence chief on October 26, to guarantee himself a second time in the 1979. Park has often had to explain away t the height of the political sea- driver’s seat. her father’s dictatorial style of rule. She son in South Korea, the country There’s no doubt, though, that has gone through the motions of apologiz- is currently enthralled by one of outgoing President Lee Myung-bak would ing for his conduct, has disavowed much of the more intriguing campaigns like very much to see a successor dedicated what he did and has said she has no inten- for the presidency since the to perpetuating his fundamental policies. tion of imitating his style of governance. first election under the “democracy con- On the basis of her family background, At the same time, as a conservative, Park stitution”A in December 1987. The contest her regional origins and her long career in has defended her father’s record for build- is all the more interesting in view of the politics, Park Geun-hye would appear as the ing up the economy, ordering the leaders of extremes represented by the candidates – best bet to carry on the conservative tra- the rising chaebol or business conglomer- the conservative nominee Park Geun-hye, dition. She has two extremely distinctive ates to focus on driving exports and turning daughter of the late President Park Chung- attributes going for her that make her a Korea into an economic powerhouse. More- hee, versus two liberals, Moon Jae-in, can- unique figure in Korean politics. over, she has said her father was not neces- didate of the Democratic United Party, and The first is that she’s a woman in a male- sarily wrong to have taken over taken over Ahn Chul-soo, free thinking entrepreneur, dominated society. Never married, Park the government at a time when the demo- Seoul National University professor and studied electrical engineering at Sogang cratic leaders who had come to power after self-styled political independent. University, a Jesuit-run institution that was the student revolution of April 1960 were Each of them has distinctive records that founded after the Korean War. For a woman wallowing in disagreement and unable to are so widely varied as to distinguish them to take center stage in Korean politics is a deal effectively with economic, political entirely from the political figures who’ve bold move that has many Koreans asking and social instability. been running for president at five-year in- whether a female can really exercise the Park’s personal life, her choices and re- tervals since 1987. South Korean presidents, same measure of authority and command lationships, were deeply influenced by the under the democracy constitution adopted the same respect as a man. For that matter, tragedies that befell her beginning soon af- in the midst of nationwide protest in June Koreans ask whether a woman can stand up ter her graduation from Sogang with the as- 1987 against the corrupted quasi-dictator- effectively to challenges from North Korea, sassination of her mother, Yook Young-soo, ship of General Chun Doo-hwan, cannot backed up by the North’s only real ally and on August 15, 1974. The occasion was the run for a second five-year term.U nder that guarantor, China. annual national day ceremony marking the constraint, the country every five years has The other attribute that no one else can date of Japan’s surrender in 1945 that end- had a change of president. It’s for that rea- possibly claim is that Ms. Park is the daugh- ed not only World War II but also Japan’s son that South Koreans are able to go to the ter of Park Chung-hee, the former general 35-year rule over all Korea. The assassin was polls with something like a genuine choice who seized power from a democratic gov- a Korean living in Japan, and the target was – and no real fear that the incumbent presi- ernment on May 16,1961, and ruled for Park’s father, who was in the midst of his 20 www.biztechreport.com cal platform.” marry -- and raise kids. Snyder offers the logue and diplomacy while remaining com- Hong notes the flaws in her style when creative insight that “her singleness could mitted to seeing North Korean reform and he insists that “many people criticize her be a political asset; there is no rival interest denuclearization. The north has not per- short sentences which quite often incur to compete with her devotion to the state.” ceived her positively. She was Lee’s special misunderstanding...I think she needs to Sung states that the answer is actually “yes envoy to Beijing when he was inaugurated speak more, especially in a friendlier man- and no. People who put much value on the in 2008 and has personal relationships ner, adding more emotional words and ac- traditional role of women may think it is a with many top Chinese leaders. Her views tions.” Actually, Park is sometimes called problem. But most of them are conserva- on the alliance with the United States are the Ice Princess for her detached style and tive, meaning that Park would be the only conventional and comfortable for most propensity to use prepared texts. But then candidate for whom they vote.” American interlocutors. She has had good again, her supporters find her broad smile What about Park’s foreign policy orien- reviews on her past visits to Washington. charming. tation? Hong finds that “she and her- col The most complicated relationship for Some have compared Park to the US’s leagues in foreign policy areas are mostly Park to navigate may be Korea’s relation- chief leader, Barak Obama, because the for- conservative, although she stands a bit ship with Japan, given her father’s role in mer breaks barriers; after all, America did more flexible toward North Korea as com- pushing for Japan-ROK normalization in not have a black president until Obama, pared to President Lee Myung-bak. They all 1965. It is hard to say whether this lega- and Park is the first female to bid for the strongly agree with the US-Korea Free Trade cy would paralyze her diplomacy toward Blue House. Hong finds the idea correct. Agreement and value the alliance much Japan or make her well-suited to address “Her career is “a path-breaking achieve- more than those who back other candi- contemporary problems in the relation- ment. But other than that, I do not see any dates.” ship. It is a different era.” Backing Snyder’s significant similarities.” Snyder has more to chip in. He recom- claim that Park is pro-US is the fact that As often occurs in politics, personal fac- mends “her Foreign Affairs article from in 2007, she addressed an audience at Har- tors enter the fray. Many point out that last year...she wants a stable relationship vard where she advocated more robust ties Park, unlike most Korean women, did not with North Korea and is open to direct dia- with America. A-P

annual liberation day address. by those from the southeast, notably Daegu The loss of Park’s mother was not simply and the sprawling port city of Busan. Nearly a terrible personal tragedy for her family, two years after DJ journeyed to Pyongyang which also included her two younger broth- in June 2000 for the first inter-Korean sumers, but also a transition point for her fa- mit, Park herself in May 2002 went to the ther. From then on he adopted increasingly North Korean capital for talks with the Dear repressive measures to enforce his Yushin Leader. constitution, the bedrock of his one-man The visit indicated Park’s deep desire to rule. His only daughter was for more than overcome enormous problems that contin- five years at the epicenter of power, the ue to stand in the way of inter-Korean rec- Blue House, as de facto First Lady, living in onciliation. As president, she would hope the Blue House, playing the role not only of eventually to meet Kim Jong-il’s youngest hostess but also of adviser, at least on social son and heir, Supreme Leader, Marshal, first matters, and close observer of all that was chairman of the national defense commis- going on among the political and mercan- sion and secretary-general of the Workers’ tile elite around her father. © City daily Party, Kim Jong-un. No one knows, however, Tragedy struck again with the assassina- Ms. Park Geun-hye. whether Kim Jong-un wields the power be- tion of Park Chung-hee on October 26, 1979, fitting those titles or whether he’s a puppet not by a wild-eyed radical or political dissi- not only for her father but for his two suc- on strings manipulated by an inner clique dent but by one who would have appeared cessors, first Chun and then General Roh led by his uncle-in-law, Jang Song-thaek, least likely to commit such a dastardly act Tae-woo, Chun’s Korea Military Academy married to the late Kim Jong-il’s younger – the director of the Korean Central Intel- classmate. Park foreswore her own entry sister. Nor is it at all clear that Park would ligence Agency. The KCIA was Park’s in- into politics, though, while Roh won the be welcome again in Pyongyang regardless strument for enforcing his power, repress- first election under the “democracy con- of who’s in charge. North Korea’s state me- ing opponents and, at that time, cracking stitution” in December 1987 after his two dia, during the presidential campaign, has down on labor unrest that had broken rivals, Kim Young-sam and Kim Dae-jung, been deriding her as a conservative expect- out in factories that Park saw as central to insisted on running separate campaigns. ed to follow in the footsteps of President modernization and economic success. One She also sat out the presidency of Kim Lee, whom the North regularly reviles as a wonders what Park Geun-hye thought of Young-sam, who defeated “DJ,” as he was ”traitor” and other choice epithets. Park’s successor, General Chun Doo-hwan, widely known, in 1992. Finally, after DJ’s North Korean attacks on Park, though, who sought to emulate her father’s policies election in1997 over a deeply conservative are misguided. First, most important, as but is remembered as a heavy-handed, in- candidate she debuted as a political figure president she would be sure to want to competent dictator held responsible for the in her own right, winning election to the soften tensions that have mounted steadily bloody repression of the Kwangju revolt in National Assembly during the first year of since Lee cut off aid to the North until or which around 200 people, many of them DJ’s presidency. unless the North did away with its nuclear students who had taken over the city, were Though a conservative, with strong program. It’s not too likely that Park would killed. backing from political and military figures right away resume shipping several hun- While Park was absorbing the impact of most hostile to Kim Dae-jung, Park did not dred thousand tons of rice and fertilizer the loss of both her parents to assassins’ oppose his efforts to forge rapprochement each year to North Korea as Kim Dae-jung bullets, she had to be considering her own with North Korea via his “Sunshine policy.” and his successor, Roh Moo-hyun, were do- debut into politics. She has been a member Nor was she an enemy of DJ despite region- ing for the decade before Lee’s inauguration of the National Assembly ever since her al loyalties in which DJ had near universal in February 2008. first election in 1998 from Daegu, the south support from the southwestern Cholla re- Park could be expected to try very hard, central city that was a wellspring of support gion, historically hostile toward domination Continued on Page 23 21 www.biztechreport.com diplomacy

Growing Tension Japanese-Korean Ties

cal resentment toward Japan. But I don’t by Victor Fic see that this translates to very much shared solidarity right now. I think that if unifica- sk South Koreans about their tion ever occurs, the shared dislike of Japan feelings for Japan and you is an important issue to remember -- it’s a might just hear a facetious lowest common denominator that Korean story. The former often say that politicians might use to bring two very dis- the peninsula is rabbit shaped: united parts of the new country together.” the head faces toward China, the source of One can also add that the South Korean Atraditional Korean culture, while the rear case becomes weaker considering the high end points toward -- Japan. For Koreans, the degree of collaboration with Japan when list of grievances goes back centuries, start- it took over. Also, the same South Koreans ing with the lament that in 1592, the Japa- who indict Japan for crimes committed nese warlord invaded Korea and wrecked three or four generations ago are propping havoc. It took Korean society decades to up North Korea, a dictatorship that human recover after the Japanese retreat in 1597. rights experts impugn because its record is Then in 1910, Japan colonized Korea and among the world’s worst. It is too easy to absorbed it into the former’s growing em- see Pyongyang’s broadsides at Japan as hav- pire. During the next 35 years, Tokyo’s © Joo Young Cho | Dreamstime.com ing an ulterior motive, namely distracting harsh policies spanned forcing Koreans to if a new start was underway. For instance, its population from the regime’s failures. adopt Japanese names to coercing or trick- in 1998, South Korean president Kim Dae- Plus, supporters of the US/UN record in ing thousands of women into sexual slavery jung travelled to Tokyo to inaugurate a sup- South Korea will note the many twists and for the Japanese military as so called “com- posedly “future oriented” relationship with self-serving distortions that nationalists in fort women.” Prime Minister Keizo Obuchi. His Japanese the south propagate, blaming foreigners for The past few months have been full host offered a mea culpa for the imperial the division when Koreans are most respon- of tension, with Koreans once again de- era while Kim dropped demands that the sible, for example. One additionally senses manding that Japan apologize for its past comfort women receive compensation. that much group ego is wrapped up in the transgressions and the two sides fighting a In 1998, Kim Dae-jung went to Tokyo and issue -- on both sides rhetorical war of words over ownership of dropped the comfort women issue for an Considering how small the disputed an island that Koreans call Dokdo and Japa- apology in order to start to a new relation- island is, one is tempted to ask why it so nese call Takeshima. What surprises many ship. Why did it fail? “Japan-South Korean important to two prosperous countries observers is that both countries normalized relations have cycled between periods of who also have no intention of settling the relations in 1965 and count the other as a warmth and greater closeness and periods rocks in the sea. Lind explains that “pro- major trade partner. In fact, South Korea of coolness and diplomatic friction,” ob- tecting the sovereign territory and people sourced much of its technology in the early serves Lind. “People were very optimistic in of the state is the number one job of any days of its industrialization from Japan. 1998, at the time of the Kim-Obuchi sum- government. Tokyo administers this terri- Meanwhile, the resolutely anti-North Kore- mit, but clearly that period of closeness did tory and believes it to be sovereign Japanese an Japanese depends on the south to act as a not linger.” territory. Seoul claims it as sovereign South buffer zone between them and the commu- There was too much right wing senti- Korean territory -- and Seoul’s claim is very nist, virulently anti-Japanese North Korea. ment in Japan, exemplified in how Obuchi’s much intertwined with the memory of Ja- They are also both US allies. Yet, obvious- successor, namely Japanese Prime Minister pan annexing the Korean peninsula in the ly, no two other members of the Western Junichiro Koizumi, paid a half a dozen vis- early twentieth century.” camp are so at odds so often. What explains its to the Yasukuni Shrine in Tokyo. Most There is certainly political pay-off to the recurrent bitterness? of the countries that Japan attacked during politicians on both sides. Hashimoto, for One long time student of the two coun- the imperial era deem that place a pro-war instance, is trying to raise his public profile tries’ bitter-sweet relationship is Jennifer site that glorifies Tokyo’s empire building. by winning attention because experts on Lind, Associate Professor of Government When pressed on whether he acted as a pri- Japanese politics say he harbors ambitions in the Department of Government, Dart- vate person expressing his individual senti- to rise higher. As for South Korean presi- mouth College. She earned her Ph. D in ments or in his public role, Koizumi fudged dent Lee Myung-bak’s visit to the island on political science from the Massachusetts the distinction, insisting that, “I’m both a August 10, Lind admits that, “I can’t speak Institute of Technology and is the author public and private person.” It whipped up for him, but people have been emphasiz- of Sorry States: Apologies in International much resentment and suspicion in East ing how he believes there is domestic po- Politics. Asia. On August 22, the high profile mayor litical gain to be had from berating Japan.” She agrees that Koreans keep demand- of Osaka, Japan’s second largest city, Toru Korea watchers stress that Lee cannot run ing apologies from Japan and explains that Hashimoto, stunned and angered many in for a second term, and so is not angling for “as much of the coverage of this issue has the region when he said in August that, votes, but instead is likely trying to burnish suggested already, South Korean politicians “There is no evidence that comfort women his legacy as a strong leader. see domestic political benefit in continu- were assaulted and threatened by the [Japa- Looming behind the fracas is China. With ally berating Japan, highlighting Japanese nese] military and dragged off.” He also China becoming stronger, then should misdeeds against Koreans, and demanding often implored Japan to develop nuclear Seoul and Tokyo cooperate more to balance apologies. However, I think it is also im- weapons, a prospect that no one in East Beijing? Could China’s rise end or amelio- portant to understand that there truly is Asia welcomes. rate the Korea - Japan disputes? Lind’s anal- an underlying problem -- that Koreans feel To be sure, the Korean case is also sub- ysis is that, “After World War II, France and that the Japanese people have not thought jected to scrutiny. Lind asserts that, “It West Germany transformed their relations much about, or do not feel regret about, the is indeed interesting to note that the two within a generation, motivated by a shared terrible human rights violations that Japa- Koreas -- which are so deeply inimical and fear of the Soviet Union. French and West nese people committed against Koreans.” threatening to one another -- actually do German leaders pushed two mutually an- Yet the two sides have at times talked as share a territorial dispute and joint histori- tagonistic peoples toward an astonishingly 22 www.biztechreport.com successful reconciliation. So of course this denials -- for example, as Secretary of State is possible for Japan and South Korea, but Clinton did, refusing to use language like it would most likely require a fairly threat- ‘comfort women’ that obscures the crime.” ening China. As we have seen so far, the Lind’s research for her book Sorry States Considering tendency for South Korea to hedge -- i.e., to showed that it is actually counter-productive pursue good relations with both the US and to demand an apology. She explains that, how small the Japan on one hand, and China on the other “Japan has extended several apologies for -- is very powerful. It’s possible that if China its World War II misdeeds. As I wrote in my disputed island emerges as a serious security threat in the book, these apologies triggered a great deal region, this would push the two countries of backlash among Japanese conservatives. is, one is tempted together -- but China’s rise so far has not This backlash was very upsetting and alarm- brought Seoul and Tokyo together.” ing to South Koreans. So we’ve run this ex- to ask why it so If both countries are American allies, periment many times, and it’s failed. Apolo- can Washington play any role? “The US gies, in other words, have not helped these important to values both countries as important allies,” countries move their relations forward. I stresses Lind. “I would hope that both coun- think relations between Japan and South two prosperous tries trust the US to help, if indeed they see Korea will depend most on broader strategic there is a way that the US could be helpful. conditions: in other words, if the two coun- countries who also Otherwise I think it’s best to let these two tries feel it’s in their interest to be closer, countries handle these issues on their own. they will fix their history problems. But in have no intention That said, we should not keep silent if we the meantime, it would help a great deal if see an ally behaving in a way that is so coun- Japanese party leaders would be less tolerant of settling the ter to our values -- in Japan’s case, if we see of the denials that politicians in Japan are prominent leaders denying known histori- fond of making. Japan can of course have a rocks in the sea. cal human rights abuses such as the World different interpretation of historical events -- War II sex slaves. We should condemn such but it’s not allowed to make up facts.”

FROM PAGE 21 | Korea’s Presidential Campaign — Dictator’s Daughter vs. Liberals however, to see if she could reach some un- if North Korea staged anything like a rep- young people tend to favor Moon or Ahn. derstanding with North Korea that would etition of the sinking of the South Korean As a high-tech entrepreneur who made a get South and North talking again by as- navy corvette the Cheonan with a loss of 46 fortune from his own venture, Ahn is seen suring the North of economic support in lives in March 2010 and the shelling eight as a champion of small and medium enter- the form of aid and trade if only the North months later of Yeonpyeong Island in which prise, chafing under chaebol domination. would live up to the promise made on two South Korean marines and two civilian As in the United States, the widening rich- February 29 in Beijing between U.S. envoy contractors were killed. poor gap in South Korea is a major issue. For Glyn Davies and North Korea’s envoy, Kim The contrast between Park and Moon that reason alone, Ahn as an independent is Gye-gwan. The understanding then was goes deeper still. While she was First Lady a strong contender. Park’s best hope may that North Korea would maintain a mora- in the Blue House, a year after her mother’s lie on the inability of Korean political lead- torium on missile and nuclear testing – a assassination, Moon was jailed under her deal that was broken on April 13 when the father’s drastic policies for opposing his ers to get along with one another. As a case North test-fired a long-range missile. The Yushin constitution. Moon came out of jail in point, Koreans hark back to the rivalry fact that the missile fell into the Yellow as a political reformer who soon allied with between Kim Young-sam and Kim Dae-jung Sea 90 seconds after lift-off did not dimin- Roh Moo-hyun, then an activist labor lawyer that guaranteed victory for General Roh in ish the view that North Korea had blatantly battling for the rights of workers in the in- the first election under the democracy con- violated that understanding. dustrial enclave of Ulsan, where union lead- stitution after neither of them would drop But how can South and North Korea ers were staging strikes against the two big- out of the race. reach any understanding when North Ko- gest Hyundai companies, Hyundai Motors Park, meanwhile, has had to deal with rea insists on challenging the Northern and Hyundai Heavy Industries. Moon stood questions about a powerful foundation Limit Line in the Yellow Sea below which by Roh not only as his chief of staff during founded by her father with funds confis- the South bans all North Korean vessels? his presidency from 2003 to 2008 but also as cated from one of his foes. The fact that the Moon Jae-in, the Democratic United Party Roh’s defense lawyer when he was mired in foundation owns a newspaper in Busan and candidate, has been on the defensive on the corruption scandal that led to his even- 30 percent of Munhwa Broadcasting Corpo- this topic, denying that the late President tual suicide. ration, one of Korea’s major networks, has Roh Moo-hyun, whom Moon served as Whether Park wins or not may depend fueled the controversy. For Park, like it or chief of staff, ever considered yielding to partly on whether Moon or Ahn Chul-soo not, the election is necessarily a vote on the North’s demands to do away with the drops out of the campaign. One of them, her father’s rule. Those who admire Park NLL, demarcated by the United Nations running alone, would have a serious chance Chung-hee as Korea’s greatest president Command three years after the Korean of defeating her, ending five years of con- will support her to the end while those who War ended in 1953 and never accepted by servative rule. Park has tried to show that North Korea. her party is really different from the old es- see her father as a cruel dictator will oppose Park might not be as outspoken as tablishment. She’s rebranded the Grand Na- her passionately even though she’s shown President Lee in declaring her intention tional Party as the New Frontier Party. More- herself as a moderate figure who takes as president to counter the North with at- over, she’s distanced herself from President as much after her beloved mother as her tacks on North Korean soil in retaliation Lee’s economic policies, perceived to have loved/hated father. A-P for North Korean attacks on the South, but favored the chaebol by doing away with she’s sure to be quite determined in deal- constraints on cross-holdings and other Journalist and author Donald Kirk has cov- ing with North Korea militarily. She would rules and regulations. ered every Korean presidential election since not be inclined to compromise or vacillate Nonetheless, there’s no question that 1987. 23 www.biztechreport.com Q&a Business Model Your Career Tim Clark

by Victor Fic Tim Clark is an entrepreneur who leads the global personal business model movement BusinessModelYou.com. After selling his Asia market entry consultancy to a NASDAQ listed entity in a multi-million-dollar transaction, he completed a doctorate in international business model portability. Clark then authored and/or edited five books on entrepreneurship, business models and personal development. They include the international bestsellers ‘Business Model Generation’ and ‘Business Model You’. He currently serves as professor of business at the University of Tsukuba in Tokyo. Clark also provides personal business models and related training to corporations, industry associations, and universities worldwide. See TimClark.net.

Q: Who needs to reinvent his cises familiar to professional career coun- A personal business model is the logic by career? selors, as far as I know, it’s the first to offer which you create and deliver value to your users a specific methodology conceived as a customers. Careers, of course, are based on A: Most of us do. In the past, organiza- personal business model. delivering value to customers, whether em- tional business models often lasted for de- ployers or clients. A personal business model cades or longer. Today, they become obso- So the previous success was lets you clarify career-related thoughts by lete much more quickly, sometimes over Business Model Generation? Tell putting them down in an organized, logical just a few years. That means employees, us more. framework that you can manipulate and test. too, have to modify their personal business Business Model Generation is an inter- models. For example, I went to work for the national bestseller that has sold more than What are the four steps? Eastman Kodak Corporation in 1988. When 300,000 copies in English and has been The four steps are draw, reflect, revise, I joined, Kodak had been operating under translated into 26 languages. I served as and act. First you draw your as-is personal the same very successful business model contributing co-author and editor. Business business model in the form of a Canvas. for over 100 years. It was also the year the Model Generation details an important new Next, you reflect on that model and how it first digital cameras appeared. Less than 25 approach to describing, analyzing, and in- might be improved or modified, using exer- years later, Kodak declared bankruptcy. Or- novating organizational business models. cises from the book. Then, you revise your ganizational business models change, and Specifically, it presents the Business Model Canvas based on those reflections. Finally, personal models must change, too. Canvas, a tool that “democratizes” business you Act, testing the various hypotheses in- Tell us about how the book is a model thinking by allowing anyone--not herent in your Canvas. just executives or consultants--to readily de- best seller. scribe and work with business models. Why do you test the framework? Business Model You became a bestseller Business Model You is based on funda- for several reasons. First, it struck a chord But the Business Model You is mental entrepreneurship principles that by offering readers a logical, actionable way based on the Business Model emphasize modeling and testing over plan- to think about the difficult subject of their Generation canvas methodology ning and execution. Organizational busi- own careers. Second, it was co-created by -- meaning what? ness “planning” has been outmoded for 328 people from 43 countries, so we had It adopts the Canvas from Business Mod- years, and career “planning” has as well. a small army of “ambassadors” who were el Generation and applies it to individuals We gain self-knowledge and move forward enthusiastic about the methodology and rather than to organizations. We call it the primarily through creation or testing rather helped us spread the word. Finally, it was Canvas because it is like a white artist’s than contemplation. built on the terrific reputation of its older canvas on which you can “paint” a visual cousin, Business Model Generation. That picture of an organization’s business model. book offers a logical, four-step process for Tell us more about your modifying or reinventing one’s career. In fact, what is a personal framework. While it incorporates principles and exer- business model? A new personal business model can be 24 www.biztechreport.com tested in many ways: volunteering with an organization of interest, taking or teaching a class, taking a new part-time job, finding a mentor, conducting informational inter- views with people working in the field in which you are interested, and so forth. How can one page be enough for laying out your personal business model? It’s certainly impossible to represent yourself entirely on a single page! But a career is a complex system. Like all complex systems, it’s very helpful to create a simpler model that lets you grasp the bigger picture without trivializing or disregarding its com- plexity. At the end of the book, I joke that the “one-page method” subtitle is mislead- ing, because if readers go through even a portion of the exercises, they will use up many pages of paper, not just one! But the key point is that ultimately we must define both the purpose and the operating methodology of our careers cleanly and simply-- on a single sheet of paper. You say that a team of 328 people created the book. Who are they? These are people who joined the Business Model You community as we were writing the book, and contributed their ideas, comments and support before the book was published. In return for pre-purchasing one copy of the book, they enjoyed the privilege of previewing and commenting on draft chapters. It was a self-selecting group; they raised their hands, and they happen to represent 43 nations. How popular is the canvas approach? The canvas methodology is now being used by tens of thousands of organizations worldwide, ranging from traditional businesses to governments, non-profits, social ventures, and other groups. The book is also a main or supplementary text at hundreds of universities globally, including Stanford, MIT, Harvard, Berkeley and Michigan. So while I have no hard proof that it is the leading way to describe an organizational business model, I see no other methodology that can make similar claims. © tim clark

You advise people to assess their for defining your career in different terms. Change is constant and inevitable. There- marketplace skills. How can they fore one’s personal business model must do so? How can people define their change as well. It might change in response The best way to do so is through objec- purpose? to life events, such as getting married, buy- tive customer feedback. It’s important to re- The Purpose Statement exercise that ing a house, having children, or an illness or member that customers might include your starts on page 144 of Business Model You is death in the family. Or it might change in boss, coworkers, subordinates, partners, a good way. It starts with identifying activi- response to technology trends, such as the suppliers, or clients of your organization. ties you enjoy, people you like to spend time shift from desktop to mobile platforms, or with, and how you like to help others. There the rise of electronic books. Finally, it might But you warn that judging change in response to economic conditions, skills is less vital than defining is a specific process readers go through to arrive at a provisional purpose statement. such as the severe worldwide downturn purpose... It’s important to recognize, though, that we’re now experiencing. It’s a safe bet that we all will be changing our personal busi- Assessing skills is less important than de- one’s purpose may change with time due A-P fining your purpose. We all tend to over-re- to significant life events or with changes in ness models. ly on our skills, knowledge, and experience. the external environment. They are important, of course. But Business Victor Fic ([email protected]) is a veteran Model You puts forward a specific method What is the vision for change? writer on East Asia in Toronto. 25 www.biztechreport.com special feature | guri city

financial benefits in the areas of meetings, lated to hospitality expos and trade shows by Kim Cheol Ho conventions, incentive travel, and events. in Asia. Also, conferences similar to the Chi- For this reason, the development of the cago merchandise mart yearly program are n the coming days Guri City in Guri World Design Center is seen as the also absent in this part of the world. This South Korea will be seen as Asia’s beginning of a new phase of the Korean problem is being addressed by the GWDC leading MICE destination. Its lo- economy. The new center will turn all eyes that will be set up in a sprawling 1,000 acres cation is ideal because statistics towards Seoul, which is recognized globally of land. show that 60 percent of the world’s as one of the most dynamic cities for devel- Also known as the NCD 2015 Project, population resides within six flight hours of opment growth. GWDC is aimed to make Guri City recog- Seoul,I making Guri City poised to support “It’s very exciting to create something nized as one of the best design centers in and grow a center of this scale. from nothing and that will impact the de- Asia. Efforts are being made to attract for- In contrast to its neighbors Japan and sign world. To be able to think it through eign companies to this destination that will China, Korea has managed to exhibit con- from the very first square foot on up is a fas- provide technical support. Investment com- trolled growth, and appears to have very cinating experience and it’s potentially go- panies will also be roped in to ensure the clear focus to become the financial and ing to be a wonderful resource for designers city’s continued growth and make it one of cultural center of Asia. Encouraged by the in that area of the globe to what is possible the greatest design conventions and enter- nature of its economy, companies such as in design,” says Randy Rubin, co-owner of tainment cities in the world. iWorks have decided to invest more re- Crypton and a member of the Nature Cul- sources in Seoul and their hospitality seg- ture and Design (NCD) Advisory Board. Natural Beautiful Landscape ment. The largest design market is located in and a UNESCO Heritage Once the project is completed, the design Asia and the most renowned and globally center is expected to make Guri City the de- acclaimed urban planning, architecture and Touted to be the Mecca of hospitality design capital of Asia and is deemed to make a interior design firms accommodate about sign industries, the Guri City incorporates significant impact on the design variety and 60 to 70 percent of the projects in Asia. an expansive and natural beautiful land- aesthetic in the region. Korea will also reap However, there are no design centers re- scape that includes a large mountain and 26 www.biztechreport.com two rivers that surrounds the city. Labeled as a UNESCO heritage three years ago, the city is known for the famous seventeen tombs of the past king and queens of the Josun dynasty. Phase I of the Guri City project will be completed in 2015 and the authorities are pleased with the results of the feasibility study for the foreigner’s company attrac- tion and investment. Both Tier 1 and Tier 2 of the feasibility study was conducted by Nielsen Company, which reports that the hospitality design market in Korea is expected to have unlimited growth. While construction is in full swing, care is taken that the design center is located either somewhere in the heart of the city or in a suburb area close to the city. This is being done so that foreigners have a guaranteed living space and education facilities and do © Guri city Mayor’s office not hesitate to travel to Guri City. The desti- Artist rendition of Model of Guri World Design Center. nation will be only an hour’s drive from the international airport and public transporta- to Pyeongchang. Additional spaces will be tion for visitors will also be made available. provided by GWDC for people during the Other facilities will also be taken care of Olympics. such as providing good condition for freight The new center Students will have an opportunity to transportation networks through air, land, study in the design graduate school at and sea. The design center will be roughly a will turn all GWDC. This school will also have an MBA six-hour plane ride from more than 70 per- program, animation center, related hospi- cent of Asia attendee areas, and an assem- eyes towards tality design programs, and R&D offices.A ll bly manufacturing zone for custom made these courses will be designed by experts to products will be made. Seoul, which is train students to become capable designers Guri City is being developed to be one who will have all the expertise required to of the cities for the leading Meetings, In- recognized globally work on a global level. centives, Conventions and Exhibitions in- Once completed, the GWDC will boost dustry. All the buildings will have unique both airport and export-related business. It characteristic that are highlighted by well- as one of the most will also boost revenues for Seoul through known architects and will have mixed-in- the annual program, including about fifty come communities with affordable housing dynamic cities expos and trade shows. More than eighty within the NCD 2015 Project site. The city conferences within the Seoul prefecture are will have a children’s cultural center and for development also scheduled to be held each year. GWDC other cultural facilities such as a concert expects several foreigners to visit Guri City hall and design library. growth. and thus it will have an economic free zone The City’s sewage plant, in combination that will include both the English and Ko- with the Guri Tower, will be incorporated in rean language. the environmental theme park and a separate region for students will be established, agement is successful in convincing for- The Attractive NCD Site encouraging them to learn about the envi- eigner tenants to invest in condominiums ronment and the sewage processing pro- in this project, it will mean a major revenue The completed NCD will be divided into cedure. This central design center will be stream for the city. many segments such as the Design Center something similar to High Point in North Several manufacturing companies had no Zone, Hotel and Service Apartment, Com- Carolina and will serve China and Southeast choice but to relocate to China and South- mercial Zone, and many more. Established Asia, which have already made inroads into east Asian countries due to the low price as a permanent showroom-type facility, the hospitality manufacture industry by tie competition for products such as furniture, the design center will serve as a large con- ups with major companies from Europe and picture and equipment. It is expected that vention center for expos and will include the United States. these manufacturers will return as GWDC contract line, residential line, and gift and Typically the Meetings, Incentives, Con- will re-establish the demand of high quality home. ventions and Exhibitions (MICE) industry custom-made products amongst customers A bridge has been designed to be located includes three important conditions: design and create more job opportunities in the above New City Boulevard and this bridge industry, convention and entertainment. industry. An additional source of income will serve as the design city visitor infor- The Guri City project will become success- will also begin thanks to GWDC’s expo and mation center for all expo attendees. An ful if all these factors are effectively used, trade show that will encourage the flow of air terminal included in the area will offer from which a compact city will result. tourists in the country. check-in and check-out services for immi- A few years down the lane - in 2018 - Ko- grants. All hotel and service apartments in Guri City Project Will Offer rea will host the anticipated Pyeongchang the GWDC will be of five star grade level and a Range of Benefits for Korea Winter Olympics. Events such as these the visitors will get to enjoy facilities such require arrangement such as adequate ac- as a large sports center, plastic surgery hos- The GWDC project will generate about commodation and a sports convention facil- pital, and health clinic and spa. In addition, 100k new job opportunities in Korea and is ity. The high speed train is scheduled to be all visitors will be able to buy items from expected to be the center of the Asian MICE completed in 2016, and will only take forty supersized duty-free shops and have an ➤ industry for hospitality design. If the man- minutes to ferry passengers from GWDC option to live in the service apartments 27 www.biztechreport.com special feature | guri city

© Guri city Mayor’s office Artist rendition of Model of Guri World Design Center. instead of regular hotels. and the theme park so that people can en- Guri City will also have very luxurious joy the theme park setting. seven star boutique hotels with comfortable A dedicated cultural and children’s zone suites and features such as the spa world, Entertainment is will cater to the needs of the children and sports center, bar/lounge and sky garden. will include a children’s library located in All these features can be availed by people ensured for visitors the children’s memorial museum. Young who opt for the coveted VIP membership. readers will be able to read both western Care has been taken to make the downtown who will get an and oriental stories as well as enjoy the pro- area pedestrian-friendly and dotted with ceedings in an animation theatre. A Chil- useful retail stores. The center of the under- opportunity to see a dren’s Cultural Center will be available to ground city will be the commercial power the local children as well, and all the for- area and is expected to boost the economic water show similar eigner children who live in GWDC will be profits in the city. Visitors can access the able to play in this cultural center with the stores 24/7 and all of the mixed-use high- local children. rise buildings will have retail stores up to to Las Vegas’ Finally, Guri City will have an attractive the third floor. These buildings will have Opera House and Concert Center; Art and financial and corporate offices beyond the Bellagio water show Music Museum; Art and Music Square and third floor and higher. Sculpture Garden; Academy Zone; Anima- Entertainment is ensured for visitors situated near the tion Studios; Environment and Theme who will get an opportunity to see a water Park; and Bank of Han River and Deck Tun- show similar to Las Vegas’ Bellagio water New City Boulevard. nel. show situated near the New City Boulevard. “We are fortunate to have industry lead- A promenade square is to be built between ers participating on this advisory board, the commercial zone and mixed-use build- dedicated to providing their knowledge, ings that will be home to several national of interior design teams will put their heads expertise and insight for the development brand outlet showrooms and retail stores. together to make various design concepts of the NCD project. Our board is primar- An underground city is also in the pipeline for each building. ily comprised of manufacturers/marketers, and it will be situated directly below the Guri City will have several “villages” for architects, and interior designers sharing design center, hotel commercial zone, and visitors, including the Canal Village, the their ideas on the first phase of develop- mixed-use zone. Lake Village, Art Village, Peninsula Village ment. Their guidance will help position the Another interesting feature of Guri City and many more. While the Canal Village GWDC as a state-of-art facility, meeting the is the establishment of the foreigner’s vil- will have a beautiful view of the water show future demands of the Asia design commu- lage that will include about 6000 units of performance, the Lakeside Village will have nity and best-of-breed in the world,” said Mi- condominiums within seven different vil- a view of the existing Jangja Lake and Acha chelle Finn, VP market and chairman-elect lages to offer comfortable living facility to Mountains. The Art Village will be one of the of the NIAB. all the foreigners living in the design city. In icon villages that will be seen when driving NIAB is providing the Korean govern- addition to offering five-star living facilities, from Seoul to Guri City and express a vari- ment with insight and guidance on the de- each of these villages will feature buildings ety of painting characteristics. The City will velopment of the Guri World Design Center boasting unique designs that will be sepa- also have the Veranda Village, which will and architecture and development from a rate from one village to another. A number connect the water theme park, aquarium global perspective. A-P 28 www.biztechreport.com Q&a Mayor of Guri City Park Young Sun

BY Lakhvinder Singh Mr. Park Young Sun is the mayor of Guri City in Gyeonggi prov- ince, South Korea. After graduating from Kongju National Teach- ers College, he joined the Korean diplomatic service and served the Ministry of Foreign Affairs in various capacities. He has also worked in the Ministry of the Interior and the Blue House, the two top power centers in Korea’s leadership hierarchy. He has also represented Korea at the United Nations Headquar- ters conference on ‘World Mayors’, where he delivered a keynote address as a representative of Korea. In addition, he is currently a faculty member of Hanyang University Graduate School. Recently he sat down with Dr. Lakhvinder Singh, managing editor of Asia-Pacific Business and Technology Report.

Q: Thank you for talking to us historical events in the past. More than 500 today. Your city is very beautiful years of history of the Joseon Dynasty can and clean. While coming to your be observed here. Many Joseon kings are buried in royal tombs here. Dongu-Reong, office I was very much impressed the burial site of seventeen Joseon Dynas- by the natural surrounding in the ty kings and queens, has been listed as a countryside. UNESCO world Heritage site. Thus our city A: Thank you for coming. Yes. Our city occupies a very important historical place © Guri city Mayor’s office is very beautiful and clean. That is the rea- in Korea’s cultural and political history. Mayor of Guri City, son it is attracting a large number of people Park Young Sun. from all over the world to come and live Now coming back to our main here. focus of the day, please tell us about the project “NCD”. What Before we talk about the ‘NCD’ does “NCD” stand for? special project, I would like to “NCD” stands for Nature, Culture, know more about Guri City, and Design. N means that we have especially its culture and the the Han River and beautiful nature, people. with Ecological Environment as our Guri is adjacent to Seoul. It just takes theme. C comes out 30 minutes from downtown Seoul to come from the rich culture of here. Our city has a very convenient trans- Guri City. D means De- portation system both in surface transpor- sign. We call this project tation as well as the subway system. Also “NCD.” Guri is located near the Han riverside. As I would also like to tell you can see we have a highway between you some special characteris- Incheon and Seoul as well. When we fix up tics of Guri City. First of all the Jamshil weir properly, big ships will be our population is almost able to pass through Han river. So our city 0.2 million, yet around 3 will have connectivity by both road, rail as million people who live well as river. around this area can reach To your question regarding the people at Guri within 30 minutes. and culture, our city has a very long and rich Secondly, two five-star hotels cultural history. It has been witness to many are located within 10 minutes ➤ 29 www.biztechreport.com special feature | guri city

trade shows in our center. Additionally, we have a plan to build an entertainment park. We are expecting a large number of foreign visitors coming here. To accommodate their demand we need to build new hotels. For example, if any expo is held here, we will need a minimum of 40,000 rooms to meet the demand. The official name of this project is ‘Hos- pitality Contract Design’, and we hope that Guri will be the hub city of Asia very soon. How many new hotels you are planning to build under this project? For now we have plans to build three new hotels. We have already signed an MOU with Starwood Capital Group to build one of the three luxury hotels. All together there will be 1000 new rooms in this hotel. The MICE industry is growing in Asia. We focus to capture this grow potential. These days, Singapore and Shanghai are investing huge amounts in the MICE industry. So far Korea hasn’t gone the right way in this regard and thus has a very small market share. After we build the design center we hope to capture the major share of market in this sector. © Guri city Mayor’s office The design industry brings out two mil- Mr. Park Young Sun, Mayor of Guri City, with Dr. Lakhvinder Singh, Managing Editor of Asia- Pacific Business and Technology Report. lion people annually. In case of Las Vegas they do many things such as electronic of Guri City. Thus it is very convenient shows and so on. Fifty to sixty percent of for foreigners to visit here. our programs will be similar to those of Las What kind of foreign business The total expected Vegas. companies you are expecting to What is the current status of the attract to this project? What kind cost of the project project? of industries and businesses do Most of the procedural formalities are you want to invest in Guri city? will be around already completed. We have sent official let- Let’s talk about Guri project in some ters to the President of Korea, the Ministry more detail. We are going to attract the US$ 9.2 billion. of Land and other concerned ministries, as hospitality and design industry. The nature well as the U.S. Ambassador in Korea. The of the design industry is that any buildings letter included this message: “Over 2000 such as hotels, resorts, or high class resi- companies are ready for the Guri project, dences are included in that. For example, if in the near future. Consumption of luxury and we are requesting the release of the an investor has a plan to build in an area, he goods and services is expected to increase. Green Belt for NCD project”. Also, we have can make a choice for all procedures related demanded some benefits for our foreign with building projects such as design, inte- Is Asia expected to become the investors. We have requested permission rior material, colors etc. Our design center hub of luxury goods and services? for the building of “foreigner only” apart- will be the place which can handle of all According to data, 70 percent of the sup- ments, as we are expecting more than 2000 these procedures. Unfortunately, there is no ply of all luxury goods in the world comes families will come and live here. such center providing all services under one from Asia. We thought that we would need What is the expected cost of the roof anywhere in Asia today. Our center will a hub city which can lead the hospitality de- be the first of its kind in Asia. sign industry in Asia. Our experts suggested project? What kind of investment Currently most of the needs of the design that this kind of design industry should be have you already made? industry in Asia are met by a small design located in Korea, especially in Guri City. The The total expected cost of the project will center in Shanghai, China. But it may not reason for this is that Guri city is located in be around US$9.2 billion. We already have be able to meet the growing needs of Asia as a very strategic place. It lies at the very cen- around 2 billion in committed investment. it becomes rich and prosperous. Currently ter of Korea’s hub of economic activity. Sec- When the project is fully operational we ex- most of this industry in Asia is dominated ondly it has a very large chunk of land avail- pect more than 2000 companies will invest by foreigners, especially experts from the able for this project very near to Seoul. Not here. Now we are waiting for the release of USA. The time has come when Asia needs to many cities in Asia can boast such a large the green belt by the government. As soon develop its own resources. Our design cen- available near to their main metropolitan as we have it, this project will run in full ter is an effort in that direction. Currently, and capital city. The case of Guri City as a swing. we are in the 21st century, and the hub of hub of hospitality design industry in Asia is As you know the regulation of foreign international development is coming to thus very strong. trade is very high in Korea. In the recent Asia. As you know, Europe is going down, I will also like to add here we are con- past foreign investment has had trouble USA is in difficult circumstances, there cerned not only about designers who will coming into Korea. For example, we are is not much to talk about South America come and work here. We also want to founder much tighter regulation trade rules except Brazil. Overall, Asia is expected to cus on various small and big events such as compared with China, Hong-Kong, Singa- become the epicenter of economic growth conventions, forums, seminars, expos, and pore, Australia, and India. We need to solve 30 www.biztechreport.com Q&a this immediately. Every investor should be We are convinced of the future success of able to come to Korea freely. this project. We have already recommended all concerned ministries that the Guri project de- If this project is successful as serves to be chosen as a national agenda. We planned, how will Guri City have requested the government to take it as benefit economically, as well as national policy, and we have got a very posi- non-economically? Please give tive response from Central Government. some specific examples. Currently there are many stumbling First of all, it leads to huge job creation. blocks for foreign capital coming to Korea. According to a report from Seoul National Should these not be done away with? Nowa- University, it will create around 110,000 new days in China, Hong Kong or Singapore, there are very few stumbling blocks. Should job vacancies. The project is also expected we not also make investing in Korea more bring high tax returns for the city. When foreign friendly? financial resources in Guri are increased, Guri City becomes a rich area. Apartment How much foreign investment costs will rise, and in the process citizens of are you expecting to attract for Guri will be able to collect more money for this project? their land holdings and properties. On a national overview, the economical As I said earlier currently around US$2 ripple effect is expected to be 7 trillion Ko- billion in total has already been committed. rean won. As I mentioned before, after we We already have signed an MOU with 1500 become the hub of the Asian design indus- companies from among 2000 companies which are planning to come here. If you are try sector, industries such as textile indus- to ask me how much the foreign total mon- try, ceramics and furniture industry will ey coming in is, we are looking at around © Guri city Mayor’s office come alive again with high-value additions Guri City Mayor Park Young Sun. $20 billion as investment by foreigners. from design industry. This question is very important What are the main companies concern is the release of the green belt only. which have so far committed to Nothing else bothers us. We have been talk- for us. Once the Guri project this project? ing to state government and federal govern- is competed, Guri City will We have seven international fund groups ment officials for five years now. We are become an international spot in the investment sector interested in this very near to solving this epic problem. After on the world map. So far it is a project. the presidential elections we hope the new local city only, so we are going government will make a call on this. to be looking at quite a sudden There are other investors also? Are you already getting good transformation. This will surely Yes. There are some investment fund have some social effects. What groups. They have made a consortium. response from the government? What are your expectations? is your thinking on such socio- When do you expect the project We are in negotiations with the govern- economic effects on the native to be completed? When is the ment. They agreed with this and are satis- population? Is your government estimated deadline? fied with our proposal. We are beginning ready to meet the challenges We divided the project into three phases. to complete the procedural formalities. We forced by this social-economic Phase 1 will be finished by the end of 2016 have already completed many. But some are mobility? still left. Please explain all the phases. As you can see from the location, the Firstly, what does phase 1 How hopeful are you about the design center will be built around the Han River. Around existing apartments, there is involve? successful completion of the project? empty land of almost 1000 acres. Currently, In phase 1 we plan to complete a design Guri City consists of both provincial area center, two hotels, and foreigners’ living Very hopeful. We have two main cores of this project. The first is that whether or and the local city. When it becomes inter- space. Here I am talking about apartments national, Guri City may have some negative and an international K- 12 School, (kin- not 2000 companies will move in. This issue is already solved, more or less. Seed invest- effects on economical and social fronts. Old dergarten to high school). And the design citizens might be a little shocked, for one graduate school will also be completed in ment by foreign investors has already come in also. thing. We know this and we are well pre- phase 1. pared to handle it. As for phase 2, this is part of the com- And another core of the project is profit- ability. How much profit we are convinced But Guri is different from other areas mercial area, and citizen apartments, an such as Kangwon-do, Junra-do, and Kyung- international hospital and township for to get from this project? This question is yet to be answered. But we are sure this project sang-do. Those are provincial cities. But foreigners and the private homes are to be Guri is more similar with Seoul, as seventy built by 2018. will be very beneficial to Guri, Korea and Asia as a whole. to eighty percent of Guri citizens just sleep In phase 3, an amusement park and cul- in Guri and work in Seoul. And of course ture center are to be built by 2020. As you know we are faced with a worldwide economic downturn. Remarkably, Seoul citizens are globalized already. So we You mentioned the main problem India, China and Vietnam are leading the don’t worry about this front too much. is the green belt issue. Apart global economic growth. Therefore, de- Nevertheless, an international city will from that, are there any other mand for hospitality construction design is come into the Han River area which is very close to Seoul. Foreigners will move in there. problems or difficulties which increasing in Asia. After coming up to our Guri design cen- For some time, it may be a little tense, but you can foresee that can cause ter, they won’t have to go to the U.S. or Eu- as time passes, the citizens of Guri will view potential delay of the project? rope. They will prefer to use our closer one it very naturally. So we do not see much No. There are none. Our biggest issue of which also has all the world class facilities. trouble from it. A-P 31 www.biztechreport.com special feature | guri city

NCD 2015 Project Nature, Culture, and Design (NCD) 2015 International Advisory Board Michelle Finn

by Lakhvinder Singh Michelle Finn is president of Hospitality Me- dia Group, a.k.a. HMG, in partnership with a publishing firm called ST Media Group. They are a media company which develop, manage, and launch conferences and events in the US and elsewhere overseas. They also publish two magazines called Hospitality Style and Boutique Design, which serve the global hospitality and interior market places. During her recent visit to Seoul she talked to Dr. Lakhvinder Singh, managing editor of Asia- Pacific Business and Technology Report, about the NCD Project 2015. The following are some

Q: As you’re the chair of the design, innovation, and technology (as re- So what is the big idea? International Advisory Board for lated to design), or architecture, with all Well, the big idea is a design centre, the NCD 2015 Project, please tell the design elements coming from the US, the world’s largest design centre, that’s us a little about the initial idea Europe, or Asia. one. The three pillars of the project - Cul- to create this board. ture, Nature, Design - are the three pri- So the project is a mixture mary components of the project. Blending A: It came into being in 2010 for the of everything that you’ve purposes of providing insight, guidance, those together in a harmonious way as a consultations for the development of the mentioned? creation of a whole new city to serve the NCD 2015 Project. And it stands for Na- Well, yes. The 4.2 million square foot people. Nature is environmental, Culture ture, Culture, and Design. design centre and the exposition centre. is the culture and history of Korea, and By 2015 we will produce events which will Design is the feature. How is this project unique from fuel the MICE industry, including hotel de- an urban planning perspective? What are the main components velopment, to accommodate the visitors of the project? I think it’s unique because it is prob- coming in while increasing some retail ably the first concept for a design city in to accommodate the coming increase in The main components are the design centre, which is called the Guri World De- the world, namely Guri City. We devel- tourism. oped the concept for the NCD, which is sign Centre, an exposition centre, a 2000 planned as a design city, a place and desti- It seems this is a very ‘big room convention hotel, a boutique hotel, nation for all design things. And it is com- project’. What is the big idea a themed hotel, cultural centres, residential, condominiums, villas, office, retail, prised of a proposed 4.2 million square behind it? foot design centre and a 1.5 million square a theme park, children centre, and a de- foot exhibition centre that will serve the The main idea is that Guri City is the sign school. The design school, a graduate whole composed city. And it will serve design capital of Asia. If you think of Asia, design school, will be part of the design as the design capital of Asia, and will be there is no design capital. There’s no Paris centre. The other thing that’s unique is a place for design professionals, owners, of Asia, there’s no Milan of Asia. And Guri that, never before have you seen a design and developers to go to see the latest in City hopes to serve that role. centre, design school, and exposition cen- 32 www.biztechreport.com Q&a tre all together. They usually have a design centre somewhere, an exposition centre over here, and design school somewhere else. We’re putting all these components together because it’s all about design and they need to be together. The design centre will serve as an incubator for the school. The school and the students will have an opportunity to interact with design elements from the design centre. And yes, I forget to mention one other thing. There will also be an art museum. And this art museum will serve real art, commercial art, and graphic art. You’re putting so many things in one place. Is it not risky? What is the expected outcome? It’s a city. And we call it a MICE compact city. A compact city means that you don’t need a car to go to any place in the city. You walk or take a bicycle, or public transport. Otherwise, if somebody such as foreigners come to the design centre for an expo or conference, they don’t know © AP REport where to go. And they don’t have any time Ms. Michelle Finn with other members of the International advisory board. because most of the people attending such events are businessmen. So you’re saying, people who live in this compact city don’t need The main idea to leave their area? is that Guri City Yes that’s it. Especially if you want to attract 2,000 brand companies, there must be at least around 8,000 employees from is the design capital out of the country. They need a comfortable living environment, etc. of Asia. If you think But why do you think families of Asia, there is should be living in the design city as well? no design capital. Because in Korea, the most expensive apartment area is the Gangnam area, and There’s no Paris they are sold out because it’s convenient and safe, that’s why so many people tried of Asia, there’s to move into the apartments. But they’re really sick and tired because there’s no © AP REport no Milan of Asia. Ms. Michelle Finn with Ms. Rosa Lee, CEO of CBK Solutions open space and no privacy. That’s why now and Dr. Lakhvinder Singh they’re looking for townhouses or private residences somewhere else again. That’s why we put aside 120 acres for townhouse textiles. It will be a place for the people to also serve in industries such as hospitality, plus private homes. The bottom price is, go for design areas and to purchase things. or serve as part of a category like kitchen we expect, around 5 million dollars. and bath, along with continuing educa- How many people are expected It will be a family living design tion, luxuries, and parties. People need to to work there? area, then? I feel that the Guri connect, people need to socialise. That’s part of it. design centre is the main That’s a big question. Well, I guess it breaks down to, at 100 percent occupancy, component. Tell me more about we would estimate about 2,000 companies Is there anything we’ve missed or it. What kind of services do you from around the world will be participat- anything you’d like to add? have in mind? ing and leasing space in the design cen- I will add a couple of things on NIAB. The design centre will be comprised of tre. And this will involve around 8,000 The NIAB members are leaders in their design elements for commercial business people, because each company should respective fields, and are comprised of such as hotels, restaurants, clubs, offices, have a minimum of four employees. And architects, interior designers, purchasing government buildings, institutional build- the people who serve the market, too, be- executives, engineers, and manufactures ings, and retail, which comprises the com- cause, I think a lot of manufactures will such as Duralee Fabrics, Kimball, Valley mercial market and residential space, so have partnerships with Korean companies Forge, and Swarovski Crystal. there are design elements for commercial for distribution. And it could be Indian and residential design. Those elements companies or European companies, and Thanks for talking to us. will be elements such as lighting, carpet, they would need place to stay. And then The pleasure is all mine. Thanks for technology, culture, art, accessories, and the hotels will serve the visitors. They will your time. A-P 33 www.biztechreport.com Business

Asia-Pacific Cruise Industry on a Roll

encouraged by the expansion of port in- Italy. Costa operates two ships in the re- by Anurag Shukla frastructure, and these players are now gion and has spent the past six years in focusing on designing innovative product developing the Chinese market. he Asian cruise industry is on a differentiation strategies to lure a rapidly Onorato also said that the Asia-Pacific roll and more people in this re- growing customer base. cruise industry should also focus on offer- gion are exploring a holiday on In September 2012, a panel of cruise ing very affordable packages to potential a cruise liner due to several fac- line executives met at the second an- customers. Onorato said Costa, which is tors such as economic recovery nual Cruise Shipping Asia-Pacific event based in Italy, has two ships in the region and an increasing interest in international in Singapore. Noting a bright future for and has spent tens of millions of Euros de- Ttourism. the Asia-Pacific cruise industry, this panel veloping the market in China over the past Affordable cruise rates and a favourable said that all players can easily find 300 six years. exchange rate have attracted many tour- million passengers in the Asia-Pacific re- The cruise industry in the Asia-Pacific ists to spend vacation in the Asia-Pacific gion with just one percent market pen- region can also be boosted in a significant waters, giving a boost to the Asian cruise etration. manner through the proper use of travel industry and developing a loyal consumer However, this panel emphasized the consultants who can promote cruising as a market. importance of having a relevant infrastruc- holiday alternative in Asia and elsewhere. According to an estimate reported by ra- ture in place to accommodate cruise ships Travel consultants can promote cruise line dioaustralia.net.au, cruise ship operations at the various ports of call. tourism to those who have never been on a by the company P&O contributed about Kevin Leong, general manager of the cruise before. The Asia Cruise Association US$34 million dollars towards the Pacif- Asia Cruise Association agrees about the (ACA) understands this fact and plans to ic economy in 2011. P&O Cruises offers addition of ports in the region: “It is ongo- launch training courses for travel consul- cruise holiday packages to places around ing work and will take some time to make tants. Australia, New Zealand, Asia and the Pa- it happen. There is a sense of urgency to “Although we have initiated training cific Islands. create more facilities.” programs during key travel tradeshows Indonesia expects robust growth in Gianni Onorato, president of Costa Cro- such as ITB Asia and Cruise Shipping Asia, cruise tourism and about 160,000 cruise ciere (Costa) said that industry should also ACA identified a need to have a regular of- ships tourists are expected to visit the na- try to explain the concept of cruising to fering of training sessions to ensure that tion in 2013. the customers. travel consultants are able to sell cruises Recent months have also seen the en- Costa Crociere is a British-American as a viable option,” said ACA general man- try of many cruise operators in this area, owned Italian cruise line, based in Genoa, ager Kevin Leung. A-P 34 www.biztechreport.com market capitalization and the value of its currency against the USD went down in Growing 2011. These factors resulted in a decrease of the number of high-net-worth individu- Although the Affluence als (HNWI) in the country. Hong Kong also saw a drop in stock-market capitalization number of wealthy last year and as a result its HNWI popula- in Asia-Pacific tion went down by 17.4 percent. in Asia has A super-wealthy individual, or high net leaves USA worth individual (HNWIs), is a person who increased, their has on his disposal over $1 million which he can use for immediate investment. total fortunes have Millionaires Findings of the report indicate that at a country level, a total of seven nations in Behind the Asia-Pacific region are ranked in the decreased from top 20 fastest increasing HNWI populations around the globe. Also, the number US$10.8 trillion of the super-wealthy population in Asia is by Rashmi Gupta growing at twice the global rate. in 2010 to $10.7 sians are beating their West- Although the number of wealthy in Asia ern counterparts in the race has increased, their total fortunes have trillion in 2011. to riches, indicating a major decreased from US$10.8 trillion in 2010 to shift in economic power, as per $10.7 trillion in 2011. The reason for this a survey by the Royal Bank of decrease has been attributed to the euro Canada and consulting firm Capgemini. zone crisis, which reduced demand for AThe Asia-Pacific region is now home to so Asia-Pacific goods. many super-wealthy people due to a high- Business environments keep on chang- growth economy that has facilitated the ing and the Asia-Pacific region may face economy to grow by 6.1 percent in 2012 success of those who run family businesses several challenges in the future, but ex- and 6.6 percent in 2013.This growth will be and property. Entrepreneurs also comprise perts believe the economy will emerge driven by the two fastest growing econo- a significant proportion of this section and stronger each year due to the diverse na- mies in the world, namely China and India. have generated wealth from sectors such as ture of Asia-Pacific exports. The growth of Asia-Pacific’s high-net-worth automobile and IT. The Asia-Pacific Wealth Report 2012 individual wealth will also depend on the “As emerging economies progress, the released by Capgemini and RBC Wealth performance of the business sector in each industrial focus will likely Management forecasts the Asia-Pacific market. A-P shift towards sectors that © AniNews.in can distribute wealth and welfare more widely throughout the population,” said George Lewis, group head at the Royal Bank of Canada. “Entre- preneurs who can establish businesses focused on improving the wealth of society will be well- positioned to grow their investable wealth.” A total of 3.37 million high net worth individuals live in this region as compared to 3.35 million in North America and 3.17 million in Europe. This increase in the number is due to an increase in the number of successful and rich entrepreneurs in Japan and China. More than half of Asia-Pacific’s millionaires live in Japan, a sixth live in China and a 20th live in Australia. While the number of high net worth individuals grew in these countries, the number fell in both India and Hong Kong. India experienced a slowdown in its equity-

35 www.biztechreport.com BUSINESS

ealth of the elderly is a cause of concern for the health ministers in Southeast Asian countries, and they have recently pledged to take better care of the people in the region who are aboveH the age of 60 years. About 142 million, or 8 percent, of the population in Southeast Asia are over 60 years of age and this number will double by 2025. The health ministers from the region recently met in Indonesia’s Yogyakarta to review key health issues in WHO’s South- east Asia region and came up with the Yog- yakarta Declaration. This declaration is a commitment to help ageing citizens and improve the response of people towards the health of ageing population in their respective countries. During the meet, the health ministers also reviewed important health issues in WHO’s Southeast Asia region, providing policy direction for future action and discussing ways to implement International Health Regulations (IHR 2005). WHO recognizes the importance of implementing the international health regulations but is challenged to do so due to factors such as legislation of different countries. “WHO follows a life-course approach to promoting healthy, active ageing,” said WHO’s director general Margaret Chan. “People who get the right start in life, follow healthy lifestyles, and take good care of their health can expect to remain active during their eighth, ninth and even tenth decade of life.” That Southeast Asian cities are concerned about their senior citizens is apparent from the fact that Kolkata, India became the first city in the region to be ‘age-friendly’ and will work towards adapting structures and services that can be more accessible to and inclusive of senior citizens. As the first city from Southeast Asia region to become part of the World Health Organization’s (WHO) Global Network of About 142 million, Age-friendly Cities and Communities, Kol- of the city remains as long as it continues to kata will connect the people of the city and demonstrate improvement on a continuous or 8 percent, of its communities to be focused on the cause basis. If a particular city is able to show that of becoming more age-friendly. As reported it has successfully followed the guidelines by the Times of India, Kolkata will also ex- as laid by WHO for five consecutive years, it the population in change information and best practices with is expected to design another plan of action other cities as well as provide technical meant to last for the next five years. Southeast Asia are support and training for the betterment of Other nations in South East Asia such as older people living in this historic city. Singapore are also focusing on the health of over 60 years of age Kolkata became the 105th member of its elderly. A large number of Singaporeans the WHO Network. To join, cities need to are worried about their future due to de- and this number declare a formal commitment in order to creasing retirement funds and look towards create an environment that will help older the government to help in their twilight will double by 2025. people living in the area. The membership years. A-P 36 www.biztechreport.com © AniNews.in

China. labor costs in China is also raising concerns This dispute took an ugly turn recently, amongst Japanese firms there. The quality Japanese marked by angry protests against Japanese of labour is high in Philippines and the af- shops, restaurants and car dealerships in fordability of the entire manufacturing op- Firms Consider China. The protestors are angry with Japan erations makes the nation a favorite spot for trying to buy an island also claimed by for investors. Moreover, many people in the the Chinese capital Beijing. This ongoing Philippines can speak English, making it Moving from source of tension is not likely to end in the easy to run business in the country. near future, driving Japanese firms to ex- Philippines is not the only nation that China, Eyeing plore opening offices in other neighboring attracts the Japanese, and many businesses nations other than China. are also looking at Singapore as a viable des- The island issue became quite sour in tination. Many Japanese companies see Sin- Southeast Asia September 2012, leading Japanese car gapore as a place to invest and companies manufacturers in China such as Toyota and such as Panasonic Corp. and Mitsui Chemi- Honda to shutdown their factories. cals have already shifted few important by David Woo “If the political issue in China will con- functions from Japan to Singapore. tinue, it will push Japanese firms there to The Japan Times notes a recent survey by ngoing tension between Japan relocate to other countries. Many may want the Japan External Trade Organization, ac- and China has set the Japa- to relocate in Southeast Asia. Japanese in- cording to which 36 percent of the 213 Japa- nese firms running operations vestors may want to relocate here,” JCCIPI nese companies in Singapore are involved in China thinking about relo- vice president and executive director No- in regional headquarters functions. cating to other countries in buo Fujii said in a telephone interview to Another 27 percent of the respondents Southeast Asia. The exact number of firms The Philippine Star. agreed that they were currently consider- consideringO moving out to nations such as The tourism industry has also been hit ing moving more of their headquarter func- Philippines is not clear but the Japanese by the protests and many Japanese tourists tions to Singapore. Chamber of Commerce and Industry of the cancelled their trips to China in their wake. “While the growth of the Chinese mar- Philippines, Inc. (JCCIPI) has indicated that Sales for flight tickets between the two na- ket is slowing, on the contrary some Asian there are indeed many who may want to tions have come down for Japan Airlines countries such as Indonesia or Myanmar relocate. and All Nippon Airways experienced an are growing, and Singapore is an ideal hub Tensions between China and Japan have increase in cancellations on its flights from to enter these neighboring markets,” Toru been brewing for some time now as the two China to Japan. Yoshikawa, associate professor of strategic nations try to sort out dispute over the Sen- Violent demonstrations are not the only management at Singapore Management kaku Islands in Japan and Diaoyu Island in reason to eye the Philippines as the rising University, told the Japan Times. A-P 37 www.biztechreport.com BUSINESS

hina is today the world’s biggest auto market with the sale going tension. Other Japanese companies is not exporting large numbers of autos to of about 18 million vehicles in affected are Mitsubishi Motors and Mazda. the world it is making quite a fortune by de- the nation last year and a pro- Both companies experienced decline in livering tires, aluminum wheels and other jected sale of 20 million vehicles sales for the month of September. To date components to the lower end of the market in 2012. The future of China’s auto industry Nissan and Toyota were banking on China in the U.S. This has given tough competition isC even brighter as this market is expected for a huge part of their global sales but this to the small players in the West and they to reach 30 million annual vehicle sales by slump has given them a setback that they are unable to make profits as previously. the year 2020, according to General Motors’ were completely not prepared for. “Those subsidies directly harm working chief executive, Dan Akerson. “People are afraid of buying Japanese men and women on the assembly line in Although China is currently experienc- cars,” told Satoshi Yuzaki, Tokyo-based Ohio and Michigan and across the Midwest. ing a slowdown in its economic activity general manager at Takagi Securities Co., It’s not right; it’s against the rules, and we due to fewer purchases by its European and to Businessweek. “If the situation doesn’t will not let it stand,” the U.S. President was U.S. clients, it is optimistic about its auto settle and if Japanese carmakers can’t quan- quoted as saying. “American workers build sales thanks to its GDP growth of more tify the impact soon, there will be a lasting better products than anyone. ‘Made in than 7 percent. The Chinese auto industry effect on their earnings.” America’ means something. And when the is also expected to benefit from a recently But Japan’s loss is another’s gain. The playing field is level, America will always announced subsidy program by the govern- Senkaku/Diaoyu islands issue may have win.” ment that favors the purchase of fuel effi- caused losses for Japan auto makers but Lured by easy Chinese policies, many cient automobiles. this also means gains for auto manufactur- auto parts manufacturers in the West have The sales of automobiles may have gone ers from other nations who have suddenly decided to pack their bags and move to down but the Chinese automakers are mak- found more interested customers than China. Enterprises who have set up manu- ing hay with products such as tires, alumi- previously. Companies such as BMW en- facturing units in China are given tax holi- num wheels and radios. These products joyed good auto sales in the same month days, access to energy and land attractive have a high demand in the U.S., European Japanese enterprises mourned bad sales of terms and conditions. Shift of manufactur- and Japanese markets and as per the esti- their automobiles. Chinese people are also ing units to China means an increase of un- mate of the research firmA lixPartners Asia, eyeing Mercedes Benz with more interest employment in the West causing trouble to Chinese auto parts makers were able to ex- and in September Daimler had an increase Obama’s government. The WTO has yet to port such products worth US$300 billion in of 10 percent in sales. Anti-Japan protests in come up with a rule that can curb the prob- 2011. the Chinese vehicle market are also helping lems arising with China’s offering about Hyundai Motor Co. and affiliate Kia Motors US$1 billion in subsidies to Chinese auto Impact of Ongoing Dispute with Japan Corp. that expect sales in China to exceed and auto parts exporters. Obama’s concern their original targets for 2012. Other com- is also valid as the U.S. is dealing with the September saw some tension between panies reporting an increase in sales post significant loss of jobs in the auto parts sec- Japan and China, which don’t see eye to the island dispute issue are Ford, General tor and an increase in auto parts imports eye on the ownership of the Senkaku/Di- Motors and Volkswagen. from China. But China is also worried about aoyu Islands, and protests in China have led All these manufacturers see China as a a weakening domestic demand and is retali- many Japanese manufacturers to consider place with large growth potential and are ating by setting up anti-dumping and anti- relocating their business operations in oth- designing strategies to tap this lucrative subsidy duties on those who are importing er Southeast Asian countries. This dispute market. This market also attracts the inves- automobiles made in the U.S. has also made an impact on the auto sales tors who want to put their money in allied in China and the sales figures for Japanese industries such as tires and auto parts. Looking Ahead automobile giants such as Toyota and Mit- subishi have gone down. Businessweek has Challenges Faced by Protests from the The auto industry in China is facing a reported huge losses for Japanese auto man- U.S. lean period and saw a decrease in sales in ufacturers who are struggling to cope with August and September. The country saw the dip in China sales post-dissent over the China has been accused by the U.S. of a boom period in this industry a couple islands. People living in China have stopped having subsidized exports of auto parts, and of years ago but now has to deal with not buying and using Japanese cars to protest the Obama government says its policies are so impressive numbers, encouraging it to against the issue and this has resulted in violating the free trade rules of the World design new policies that boost sales in the the biggest drops in China sales since 2008. Trade Organization. The U.S is still recover- rural areas of the nation. Sales strategies Nissan has suspended automobile pro- ing from the global economic meltdown a for the rural areas are expected to increase duction in China following a decrease of few years ago and is struggling to offer jobs domestic consumption and inject life in a 35 percent in sales in September 2012. In to those unemployed in the nation. China’s weakening economy. The government is the same month, Toyota’s sales went down new stance on export policy has driven the currently planning to provide subsidies to by almost 50 percent and Honda Motor Co. U.S. to ask the WTO to intervene and ques- those who buy mini-buses, cars and trucks suffered a loss of 41 percent due to the on- tion China’s trade policy. Although China Continued on Page 48 38 www.biztechreport.com tutions to be run for profit, it has yet to be by group Confederation of Indian Industries seen if this change is actually implemented (CII), has invited 17 government depart- The by the Indian government. ments and ministries and nearly 60 compa- A successful economy requires workers nies to a two-day conference in Delhi that Transforming with higher education and skills and this will begin on Monday, according to a min- target can be met if quality higher educa- istry concept note that Mint has reviewed. tion is provided to students. Quality can be “The government cannot do everything Indian Higher enhanced by hiring highly qualified teach- by its own. Once the industry participates, ing staff but the institutions need to have issues like land and finance will be taken Education money to pay the salaries. However, the care of easily,” said S.S. Mantha, Chairman money to pay teachers is not there and no of the All India Council for Technical Edu- system is in place that allows institutions to cation (AICTE), the regulator in the higher Sector generate surplus cash if they cannot charge education sector for technical institutes and higher tuition fees from the students. Lack a part of the HRD Ministry. of quality education is causing brain drain AICTE thinks including the participation by Anuradha Shukla in the country, as when students do not find of the industry will encourage students to good teachers and institutions in India they focus on theme-based research and inno- he Indian higher education prefer going outside the country to pursue vation and ultimately lead to establishing sector is experiencing a high higher study. educational institutions that aim to develop growth phase these days and The Indian government recognizes the qualified and productive researchers. Fo- a recent survey by the nation’s fact that adequate public expenditure is cused research will improve various Indian HRD ministry shows a dramatic not done on higher education, and has an- industries such as water, manufacturing, increase in the number of students current- nounced a scheme called RUSA, or Rashtriya and energy. Tly enrolling for higher education. The gross Ucchatar Shiksha Abhiyan. Aimed towards The Indian education sector is growing enrolment ratio (GER) for higher education improving the quality and reach of higher each day and this boom is attracting com- had been stuck at 12 percent for the past education, this newly announced initiative panies such as Polycom to invest in this four years but times have changed and this is expected to increase the gross enrolment industry. The video-conferencing solutions ratio has now touched 20 percent in 2012. ratio in higher education to 30 percent by provider is targeting the higher education These figures are very encouraging as the 2020. Chopra from dailymail.co.uk reports space, and believes these offerings can en- GER for the developed regions of the world that the Planning Commission has agreed hance the professional development of the is between 35-40 percent, and the increase to implement RUSA and India will soon be teachers. Several global universities and in- shows India is nearing this global bench- able to offer new universities and engineer- stitutes conduct lectures over the Internet mark. ing colleges to students in the under-served and India is catching up with this trend. This increase in ratio is expected to bring areas. This initiative will also ensure that “The higher education sector is adopting many challenges, as more students inter- students in these areas are taught by highly technology because of its large bandwidth. ested in higher studies means the Indian qualified teachers and study course materi- They have the facilities to hold a lot of the government will have to establish about al that is at par with courses offered abroad. high-definition technology,” said Lynnette 800 more universities and 50,000 more col- In the coming months, RUSA will aim to Whitfield, Director of Education Industry leges. HRD minister Kapil Sibal expects the establish 374 model degree colleges in India Solutions and Market Development, Asia- number of students considering university and has roped in the Ministry of Human Pacific, Polycom, to theH indu Business Line. education to be about 400 million by 2030 Resource Development (HRD) to bear about and thus emphasized the need to quickly 65 percent of the project expenditure. The Higher Education Sector and Technology build the physical infrastructure. The educa- remaining cost will be borne by the states. tion system in India needs to be revamped Forbes India recently spoke to Pawan Recognizing the need to come up with as there are many signs it is not delivering Agarwal, Adviser (Higher Education), Plan- out of the box solutions to manage the high expected results. Although the government ning Commission for the Government of growth in the Indian education sector, Sibal has established institutes that render higher India, who insisted that the nation should has proposed the educational institutes to quality education, very few prefer studying focus on implementing new initiatives in tap the internet and cloud-computing tech- there. In fact, students from the more eco- the 12th Five Year Plan period (2012-2017) nologies. The HRD ministry has announced nomically deprived section of the society for reforming higher education in India. its intentions to distribute low cost devices also choose private institutions, foregoing The country has several institutes that de- like tablets and mobile phones, and agreed free education provided by the government. liver education related to engineering and to bear the fifty percent cost of the prod- Not every private higher education institute management but there is a need for more ucts. The government is also making efforts is regulated and students often have to do courses to address the requirements of the to connect many thousands of villages by with low quality education. As a result of labour markets. fibre optics to enable students benefit from this, many students graduating from these a powerful information highway. Wireless colleges are unable to find employment in Role of Industries in the Indian Educa- access by tablets and mobile phones will India and elsewhere. S.K. Barua, director, In- tion Sector enable teachers to upload videos related to dian Institute of Management, Ahmedabad courses and create virtual workshops and attributes the fall in quality to lesser control The corporate sector may soon get to labs. In addition these measures will also over education by the government. The two- play an important and constructive role in help students to conduct regular self-assess- decade liberalisation process, says Barua, India’s higher education sector as the gov- ment of their progress. has resulted in commercialisation and a fall ernment is considering a proposal to in- Sibal is not the only person who thinks in quality of education. volve industries in higher education. This the Indian higher education sector needs a move is expected to deliver several benefits revamp as panelists at the recent Emerging Profit-making and Higher Education such as increasing research and employabil- Kerala 2012 Global Connect conference in ity in higher institutes of India; availability Chennai acknowledged the importance of The higher educational institutes in In- of more land for institutions; and having improving the employability of students dia need to make profit in order to deliver funds for the requirement of the education and collaboration between industries and quality education on a continuous basis but facilities. Enterprises that are willing to join institutions. Kerala boasts the highest lit- the human resource development ministry hands with the government in this respect eracy rate in India and the state’s Education is yet to change the current not-for-profit will be given regulatory clearances for open- Minister P.K. Abdu Rabb also supports im- model. Although the final draft of the 12th ing institutes provement of quality and efficiency of the five-year plan allows higher education insti- The ministry, in association with the lob- Continued on Page 41 39 www.biztechreport.com BUSINESS

© Picstudio | Dreamstime.com ally help the cost of solar power to be equal to the cost of utility power from conven- Potential tional sources by 2014 and India will see solar power generation capacity of 12,500 Mw of Investment by 2017. If solar power keeps on growing at this rate it will be able to address about 7 percent of nation’s power requirements in Power by the year 2022. Eventually, solar power would be able to reduce cut down 30 per Sector in India of coal imports and create foreign exchange savings of up to US$8 billion. KPMG emphasizes that this goal will become a reality if the Indian solar power sec- by Anurag Shukla tor can attract significant investments from ndia is challenged to cope with an enterprises acute deficit in its power supply, “I think it is pure economics that is mak- despite the improvement it experi- ing everyone look at India, because it’s enced during the 11th Plan to the a market driven by demand, not climate end of fiscal year 2012. The nation’s change,” said Azure Power’s founder and installed capacity is achieve certain accom- CEO Inderpreet Wadhwa, “The economics plishmentsI during this plan period such as make sense. You have a regulated tariff, reducing energy deficits and commission- there’s a market, there are customers and ing a 1200kV test line centre in the state of the price is more palatable now.” Madhya Pradesh. The 12th Plan (2012-2017) will see an investment of about INR 45 lakh Indian Electrical Equipment Industry crore (US$900 billionand half of this is expected to come from the private sector in Singh, MD & CEO, Power Exchange of India J.G. Kulkarni, president, Indian Electrical India. The Indian energy ministry wants told the Economic Times that the govern- and Electronics Manufacturers’ Association to balance out the supply and demand in ment has already received queries from the (IEEMA), cites the total electrical equipment the energy sector, reduce its dependency foreign direct investors who are interested market to be about INR 1.25 lakh crore. on the imported goods and develop alter- in investing in power exchanges. But inves- Speaking to Business Line on the prospects nate energy resources such as gas and solar. tors are not pleased with the 5 percent indi- of the industry, Kulkarni said that distribu- However, the power sector is facing major vidual investor limit, as it makes the trans- tion accounts for about Rs 40,000 crore of problems with funding of power projects. action unattractive for many enterprises. the total market and it is expected to double Lending institutions in the nation are care- Investors also want a friendly regulatory en- in future if “all goes well.” The government ful with investing money because the elec- vironment and better government support intends to revise tariffs and encourage pri- tricity distribution companies do not have to build infrastructure, ensuring transmis- vate investment in distribution leading to enough cash to buy power and the nation sion to areas with high demand. the entry of more distribution franchisees is already facing a shortage of coal and gas. Interestingly, Indians are eyeing foreign to enter the electrical equipment industry. Other problems include theft of electricity shores to set up power projects as they are China has captured a significant portion and inability to charge more from the con- getting an opportunity to establish base via of the Indian electrical equipment industry sumers of the electricity. invitations from government of several na- by delivering lower-priced goods to the mar- The good news is that business houses tions. Recently, Iran invited India to set up ket and this has driven the local manufac- are more than ready to put their money power projects on its turf. Indian investors turers to search ways to boost their exports. in projects like wind and solar power pro- are weighing this option and want to tap the These manufacturers see growth in the vided they are given infrastructural support potential in the power generation projects future but many are currently struggling from the government. Companies such as in this country. Similar to Iran, the Repub- to break even. India’s imports of electrical the Muthoot group are already active in lic of Macedonia is also encouraging inves- equipment imports were at $11 billion in this field. This group invested about INR tors from India to put their money in their 2010-11 due to low import duties on most 150 crore (US$30 million) in Kanyakumari domestic power projects. This emerging products. district in the state of Tamil Nadu in the economy in the southeastern part of Europe The Indian local electrical equipment wind energy sector. Chairman of the Mut- has invited tenders from Indian companies manufacturing industry also has to pay hoot Pappachan group, John Muthoot, told for 650-Mw hydro power projects worth 700 sales tax and other trade taxes, increasing the Press Trust of India that his company million Euros. Macedonia aims to liberalise competition with their Chinese counter- was generating 25 mw of power worth Rs. its energy market by 2015, and wanted to parts who enjoy more sales due to attrac- 10 to 12 crore (US$2.2 million) every year privatize up to 49 percent of its state elec- tive credit policies. Manufacturers in China through this green initiative. The group has tricity generation company to this end. readily agree to finance imports for their now set its sight on the neighboring state of buyers and this means Indian buyers prefer Kerala that has been identified to have the Alternate Sources of Energy to buy from China instead of India. This sit- potential of generating about 2,000 mw of uation will improve if and when the order wind energy in its Ramakkalmedu, Kanjik- Conventional energy is still popular to impose customs duty on imports good is ode and Attappadi in Palakkad district. GE amongst people but solar power is gradu- implemented. Kulkarni also noted the need is also set to invest about US$200 million ally gaining its hold in India and a new to make heavy investment to increase the in a Pune based manufacturing facility in study by KPMG indicates that the cost of so- generation, transmission and distribution India. The company is establishing this fa- lar power may equal to that of conventional capacity of power plants. The Indian power cility for the production of goods related to energy by 2014. The research shows that sector requires about INR 13.72 lakh crore power generation, transmission & distribu- the escalating cost of setting up Greenfield in the next five years but sees potential tion and measurement & control systems. projects and an increase in the price of ex- for power equipment exports in the near The Indian government is also trying to porting raw material has resulted in a steep future. Countries such as Africa, Malaysia, attract foreign investors and is allowing up rise in the cost of conventional power. This Indonesia, Sri Lanka, Bangladesh and Viet- to 49 percent in power trading exchanges contrasts sharply with a reduction in solar nam buy electrical equipment from India. from such companies. The government ex- power prices attributed mainly to a cut in pects this investment will boost availability solar photo voltaic (PV) modules prices. Conclusion and distribution of electricity. Rupa Devi KPMG says that all these factors will eventu- Continued on page 45 40 www.biztechreport.com © Sahua | Dreamstime.com Future of Samsung’s Nuclear Power Increasing in Japan Profile in Southeast Asia by Kevin Liu

apan will no longer follow its by Anurag Agnihotri plans to phase out nuclear power by 2040, following pro- the 2030s is not something to be achieved 32 percent of mobile devices sold tests from various business only with a decision by policy-makers,” said in the Philippines as of last November Japanese trade and industry minister Yukio and industry leaders who find were made by Samsung, according to the move detrimental for the nation’s Edano, according to a report in guardian. a survey by Singaporean research firm Jeconomy. co.uk. GfK. The Korean company is seeing a Retreating from atomic energy means “It also depends on the will of [electricity] sustained growth in Southeast Asia and a loss for companies that depend on local users, technological innovation and the en- is targeting a market share of more nuclear power plants for running business vironment for energy internationally in the operations. These firms would have to shift next decade or two.” than 50 percent by the end of 2012. production overseas due to the high price of But Japan insists that this decision to Samsung typically releases its devices imported oil and gas and thus lobbied heav- phase out nuclear power by 2040 does not in Korea and Southeast Asia before it re- ily to drop the decision to phase out Japa- mean that the nation does not aim to be leases them elsewhere, and it recently nese nuclear power in the coming years. nuclear-free in the future. The country be- released the Samsung Galaxy Note 2 Thirty percent of Japan’s electricity lieves in a ‘no nuke policy’ but cannot go for in South Korea. The much anticipated comes from the nuclear power, and before a complete phase out as this means greater Samsung Galaxy S III (S3) LTE is also deciding to shut out the atomic energy dependence on fossil fuels and may even be now available in Singapore. sources, it aimed to increase this capacity to detrimental to the climate in the long run. Samsung Malaysia is also doing well 50 percent by the year 2030. However, the Japan faced many protests against nucle- and is currently strengthening its posi- country decided to shut all its 50 nuclear ar reactors in the wake of earthquake and tion in the local television market. It reactors by 2040 and use crude oil, thermal tsunami disasters that caused nuclear acci- expects the future to be bright and is coal and liquefied natural gas in the future. dents in the country. The government shut pushing itself to the top as more Malay- Japan took the decision to phase out two out of its fifty nuclear plants but has sians purchase televisions. nuclear reactors by 2040 following a rec- now given them permission to begin opera- “The Malaysian smart television mar- ommendation by a panel of energy experts tions as before. ket is on the uptrend and right now it who proposed a policy for nuke free Ja- Anti-nuclear campaigners are not pleased is accounting for between 35 percent pan. The people of Japan openly protested with the government’s policy to back out and 40 percent of sales,” said the com- against the nation’s current nuclear policy from the phasing out decision and believe pany’s Consumer Electronics business and about 90 percent of those surveyed by that failure to stop nuclear power plants director Jimmy Tan Chee Wee at a press the government said they wanted complete to operate can jeopardize the health and conference after signing an agreement abolition of nuclear power. safety of Japan’s people and its economy in with Media Prima-owned subsidiary Alt Only 4 percent of the Japanese people the future. Media. surveyed said they want their nation to use The fate of Japanese nuclear reactors is A US federal jury recently ruled that nuclear power for energy in the future. not clear as the government weighs its op- Samsung copied critical features of the The nation has taken a u-turn now after tion to either be a nuclear free nation de- iPhone, and as a result of this Samsung listening to those who depend on atomic pending on fossil fuel in the future or lis- had to pay Apple US$1.05 billion in energy centers for jobs and business oppor- ten to the business groups who are worried damages. Apple is now making the case tunities. about losing their business to competitors for a very quick ban on the sale of eight “Whether we can become nuclear free by in other nations of Asia. A-P Continued on page 48

FROM PAGE 39 | The Transforming Indian Higher Education Sector higher education sector. The principal nations, including Germany, Canada, Brit- companies are currently operating in India. secretary of higher education in Kerala ain, Saudi Arabia and Singapore, are keen This growth potential is luring non-profit thinks overcoming investment deficit, on investing in the state’s education sector. companies such as edX to introduce on- bridging the quality gap and providing These initiatives and developments will in- line courses from prestigious universities an enabling policy framework will help spire other states to follow the example set like Harvard and Berkeley. edX has noted overcome the challenges in the higher by the region with the highest literacy rate the need of high quality education in India education sector. Other areas of focus in in the country. where there is very tough competition for a the coming months will be forming alli- The concept of e-learning is also gain- limited number of seats at universities. ances with the private sector to sponsor ing popularity in India and this industry Professor Anant Agarwal, head of edX, research and arranging relevant industri- has grown at the rate of 27.9 percent in told India Real Time that software giants al training to students. the last 3 years. A research report “Global such as Wipro and Infosys are willing to The Kerala government is set to an- Education Industry Forecast to 2016,” by employ students of edX and this gives hope nounce a new policy framework in this market research company AM Mindpower to many students who want to benefit from connection and representatives from many Solutions shows that over 140 e-learning earning quality higher education. A-P 41 www.biztechreport.com Q&a On China’s Demise and Challenge to the West Gordon G. Chang

by Victor Fic For the past several decades, China’s dramatic economic rise has caused global observers to praise it as a Cinderella story. But according to China-watcher Gordon Chang, that once bright fairy tale is turning dark and, for the West, stormy. Chang, born in New Jersey, practiced law in Beijing and Shanghai between 1996 and 2001. He is the author of ‘The Coming Collapse of China’. In addition, Chang is a columnist on China for Forbes and appears on CNN, Fox News, CNBC and MSNBC. On November 1st, Chang gave an exclusive interview near Toronto to BizTech’s contributor Victor Fic to explain his views as to why China faces many troubles ahead in economics, politics, and demographics.

Q: Gordon, why are you doubtful about China? A: I insist that much of what we know about the Chinese economy is obsolete. It has hit an inflection point and started a long downward slide. Beijing claims that third-quarter growth was 7.4 percent. But I doubt this. That number is fabricated. The best indicator of Chinese economic activity is the production of electricity. In Septem- ber, electricity production grew by just 1.5 percent. Because the growth of electricity has historically outpaced the growth of gross domestic product, the economy could not have been growing much faster than 0 percent. With Christmas orders, the factories should have been booming, but we saw manufacturing continuing to contract in the third quarter. China suffers from de- flation, too, so it could not have had robust growth. Corporate profits were down 11.4 percent for the first nine months of 2012, and this is another indication of economic distress. So is all the ‘hot money’ -- illegal capital flows -- leaving the country. But many say this is temporary. True, many China boosters reassuringly explain that these are temporary setbacks, but I disagree. China is in a super-cycle downward because the three conditions that created growth in the past no longer exist. To © Gordon G. Chang Gordon G. Chang with Dr. Lobsang Sangay In Washington D.C., interviewing Dr. Sangay for Forbes.com on July 9, 2011. 42 www.biztechreport.com start, the Chinese leadership is not sponsor- ing reform. Instead, Beijing, in a great step backwards, has partially renationalized the economy with state cash in recent years. You also focus on the international scene, correct? Yes, the benign external environment no longer exists. China can no longer export its way to prosperity as its trade partners have lost patience with its mercantilist policies. Its large trade surpluses came at the ex- pense of others. The ongoing negotiations for a Trans-Pacific Partnership that will promote free trade excludes China, a snub that was not conceivable in past years when there was far more good will toward it. Please explain your view of the people factor. China’s demographic dividend has turned into a bust. The workforce already peaked in 2010, six years before Beijing’s official demographers said that it would. © Gordon G. Chang Gordon G. Chang with His Holiness the Dalai Lama in Washington, D.C on July 9, 2011. In many ways, demography limits what is possible. Soon, one worker will support two parents and four grandparents. In the early from the collapse of the Soviet call a ‘hand-to-hand fight’ with America. 1970s, the total fertility rate there was 5.9, Union. The United States has defended freedom of navigation for two centuries, so its interests meaning that on average each woman had The Communist Party learned all the that many children. Now it is 1.8, according are diverging with the interests of China, wrong lessons from the Soviet Union’s fall which wants to take over its neighboring to the official figures, but in fact is closer in that senior leaders believed they had to to 1.4 or 1.3. Within a decade, the country seas. Beijing has territorial disputes with prevent the emergence of a Chinese Gor- three U.S. treaty allies, namely South Korea, will shrink. Yes, China will grow old before bachev. What they did was ensure that new it grows rich. As for India, its workforce will Japan, and the Philippines, and that could Chinese leaders were bland and uninspiring easily draw in America. Beijing uses pro- be double China’s in about two decades. as they weeded out capable leaders. As a re- America’s stable demographic profile is vocative and forceful tactics to enforce its sult, the party is losing its vital connection expansive and sometimes ludicrous territo- much better than China’s and is about the with the Chinese people. best in the developed world. rial ambitions. For instance, China claims Assess the Chinese military. the entire South China Sea as an internal Chinese lake. Why are you pessimistic about I am struck that when U.S. Secretary the Chinese Communist Party? of Defense Robert Gates visited Beijing How will the world respond? The Communist Party is increasingly in January 2011, the men in uniform fla- I see a grand coalition of democracies unstable as the Fourth Generation leaders, grantly (in his mind) tested their new J-20 forming and approve of Washington’s stra- led by former President Hu Jintao, gives stealth fighter. Party leaders apparently did tegic pivot to East Asia, a move that is in re- way to the Fifth. At the beginning of this not know this would occur. As Gates said, sponse to calls within the region for the U.S. year, almost every China watcher said this there is a “disconnect” between China’s to exert leadership. President Richard Nix- transition would be smooth because the military officers and their civilian leaders. on made a grand wager that China would party had institutionalized itself with rules, The fact that Hu Jintao this year has had become a cooperative partner rather than guidelines, practices, and limits. Even crit- to constantly remind the military that it is another Soviet Union, but now it is becom- ics of the regime accepted this storyline. subject to the party’s absolute will shows ing clear that this was a risky bet. This is what the world wanted to hear, but his concern about the military’s obedience now we know it was completely wrong. to the leadership. Rumors of a coup have Amplify your views on the What are the signs of crisis? twice circulated through China in 2011, in downward spiral you perceive. January and again in March. Many Chinese The bizarre Bo Xilai affair that started The slumping economy is creating a cri- found the stories of military takeovers cred- sis of legitimacy, which is causing leaders to in February of 2011 shows that the infight- ible because top civilians have conditioned ing at the top of the party is intense. Bo fall back on nationalism and increase fric- the Chinese people to believe that the top was popular with leftists. The party is now tion with neighbors, and increased friction brass has assumed a central role in Chinese fragile and has no strongman to enforce dis- is now aggravating the country’s economic politics. cipline. It cannot hold power much longer. problems. For instance, the Japanese car- It uses coercion and that is not sustainable Can the military move against the maker Nissan is shifting investments from China to Southeast Asia in part because of in a modernizing society. The very public party? Bo scandal has resulted in the party losing September’s anti-Japan protests. The military is increasingly acting inde- popular support. Since this February, there So you foresee a gloomy future? has been a public drama of ambition, cor- pendently of civilians, criticizing them in ruption, intrigue, lust, murder and treason. public, and making pronouncements on Leaders around the world will conclude In recent months, we have learned that the areas once considered the exclusive prov- that China cannot be appeased, engaged, families of Premier Wen Jiabao and new ince of diplomats. Plus, the generals and or cooperated with. Beijing will act unilat- leader Xi Jinping have become unbelievably admirals are talking in a bellicose manner, erally. U.S. policymakers will not so much wealthy. All this de-legitimizes the party. openly threatening to wage war in the near be making China policy but reacting to the future. I am alarmed that many flag of- new realities in Beijing. We are headed into Explain China’s wrong lesson ficers appear to be spoiling for what they an especially troubling period. A-P 43 www.biztechreport.com technology

-books are selling like hot cakes compared to printed books. E- sible. Publishers have a means to find out ing to the most recent trends, demand and books, the harbinger of change what books are in great demand and why mood. Likewise publishers are leveraging in the publishing industry, are and how readers actually peruse a book. the technological developments and huge here to stay, are preferred by peo- Reading, a private hobby confined to the volumes of data to garner crucial informa- ple of all ages and are a boon to publishers. comfy corners of the house or open ter- tion regarding reading behavioural patterns EDownloading E-books is a trend now and races or under the shade of a tree, has now to offer what is in vogue. is catching on fast with sales of digital books become a measurable quality owing to the racing ahead of printed books. People seem advent of digital books or E-books. This is E-Reading Data to be reading more than ever before, owing made possible via book apps. Publishers can to the simplicity in getting one’s hands on now derive insights on the reading habits Reading is considered a valuable habit a favourite title. of people. Book apps have been specially with schools and parents trying to kindle Simply download the book and read! No developed for tablets like the iPad, Kindle the passion for reading among kids. If the need for hunting for the book in a store any Fire and Nook, which reveal the number of present generation of readers prefers a lu- longer. Reading while traveling has become times readers open the app and the actual minous screen instead of reading from a a pleasure with E-books. No need to carry time spent on reading. paper book, so be it. An important hobby heavy books! Authors are welcome to this idea as is now available on a screen. Whatever the Electronic books, or E-books, come in many of them silently wished to find out media, the habit of reading is bound to pro- digital format and include text and images who bought their books and if books that duce better citizens. which are readable on computers or other were bought were actually read or sim- The big data collected from E-books is electronic devices. E-books can be electronic ply rested as gifts to be displayed in book expected to help publishers wean read- versions of printed books or may be created shelves. Although books like J.K. Rowling’s ers away from distractions posed by social only as a digital version also. E-book readers Harry Potter series were no mystery regard- media and games. The E-reading data will are dedicated devices meant for reading but ing who grabbed the books or their reading help publishers cater to the reading audi- computer tablets, personal computers and frequency, there are still books which do ence. Amazon collects data on customers’ even smart phones also serve the purpose. not create a ripple, let alone a wave. reading habits while many publishers and The Open E-book format serves as a sin- The feedback that E-books deliver via digital book retailers keep tabs on reading gle source document that could be handled book apps will help authors write books habits, books purchased, profile of custom- by different book-reading software and according to reader preference in terms ers and so on. hardware platforms. E-book publishing has of content, length and emphasis to details Many E-book publishers gain permission helped many authors whose works were re- with respect to emotions, place, clothes or from users to store information from devic- jected by publishers to catch the public eyes food. Several authors in fact welcome such es, like the last page read, favourite parts of and showcase their talent online. Publishers feedback. story, highlights, annotations, time taken to also gained more readers and a wider mar- There are some who opine that the whole finish a book and if reading was dropped in ket, as E-books have introduced other pub- creative process which concludes in a won- between. Publishers can compile results of lishing possibilities. derful tale will get curtailed with feedback. highlights made by scores of readers to get Much of what was termed impossible Some books have to remain long to retain a taste of what readers love. some time back has become a possibility the imagery and the whole creative process. Publishers like Barnes & Noble are deriv- now. Publishers and authors are always keen Writing based on collected data is not ac- ing insights into customer reading behavior. to know what a reader does when he or she cepted by some authors and publishers. The company’s Nook E-reader reveals facts is perusing a book. Whether they read in one Amazon, Apple, Google and other E-book like reading speed and how far a book is go or whether they read a few pages at fixed publishers can find how much of the book read to help authors create more interesting times every day, and so on. Some readers is read , and the time spent reading and the books. Nook E-readers sales is encouraging read the prologue, epilogue and everything terms readers use to search for books. Some which the company wishes to leverage. Us- that goes in between the covers while some readers may find this an invasion of reading ing special analytics, publishers assess read- only read the text on the covers. What ex- privacy but marketers argue that publishing patterns of groups of people and not indi- act parts of a book interests readers was not ing still remains behind other industries in viduals giving rise to collective intelligence. within reach of book publishers when only catering to the taste of audiences. Data shows that when buyers read the paper books or the printed version of books In other forms of entertainment like first title in a series they end up reading all were the only offerings for a reading popula- movies and TV shows, a sincere effort is available books of same series. Also non- tion. That is a thing of the past. Now E-books made to find the preferences of the viewing fiction work is not read continuously but make the previously mentioned tasks pos- populace via TRP. Shows are created accord- Continued on page 47 44 www.biztechreport.com Apparently CIOs in Asia are on the right track as another report from hosting and FROM PAGE 40 CIOs in Asia cloud services provider Parallels shows that the Asia-Pacific small and medium business Potential of Investment Give Priority (SMB) cloud services market opportunity in 2012 is worth US$7.6 billion. in Power Sector in India to BI, Mobile Looking forward, this market will grow It is clear that the Indian gov- 38 percent annually (CAGR), and reach ernment is doing its bit and has US$19.8 billion in 2015. proposed reforms to improve the and Cloud The average IT budget has also increased efficiency of the state electricity dis- for the CIOs in Asia and about 60 percent tribution companies. Reforms have of the respondents expect an increased bud- been introduced to improve the by Chung –Yeon Cho get this year. Of those surveyed, 28 percent power situation and plans are dis- expect their budget to remain flat and 15 cussed to overcome the shortage of he 2012 Gartner Executive Pro- percent said their budgets would decrease coal supply. Plans to improve the grams (EXP) CIO Agenda survey from the last year. power situation were stepped up indicates that CIOs in Asia now Findings of the 2012 Gartner Executive after the country was left in a lurch give more importance to busi- Programs (EXP) CIO Agenda survey are due to two blackouts in July of 2012, ness intelligence and analytics, based on the responses from 2,336 CIOs highlighting the loopholes in this mobile technologies and cloud computing. across 44 countries and 37 industries. This sector. Indian currently requires TGartner thinks that Asia and the rest survey includes 53 CIOs from China, Hong about $247 billion to reach its tar- of the world are becoming one as the pri- Kong, Malaysia, Singapore, South Korea and get of increasing generation capac- orities of CIOs in Asia are becoming more Thailand. ity to 288 gigawatts by March 2017, closely aligned with those of their global This year’s survey also indicates that the according to the Wall Street Journal. counterparts. average tenure of CIOs in Asia is 3.5 years Other sources of energy are also be- and 58 percent of these professionals report CIOs are especially combining analytics ing evaluated and we can now see to the CEO in their organization. About 60 a definite shape of the Indian solar with other technologies for creating new percent of these CIOs’ time is spent on IT and nuclear industry. The nation is capabilities, and this combination has given related activities and responsibilities. The continuously working towards re- birth to several offerings such as analytics remaining 40 percent is spent on other moving the energy deficit and ex- plus supply chain for process management business activities. pects the private sector and foreign and improvement; analytics plus mobility Although CIOs in Asia give priority to BI, companies to make relevant invest- for field sales and operations; and analytics mobile and cloud technologies, a study by ments in the power industry. In ad- plus social for customer engagement and CA Technologies reveals a lack of digital lit- dition to removing dependency on acquisition. eracy amongst senior executives in the re- imported goods, the nation is focus- All these efforts are being made by CIOs gion, and this may affect business growth ing on the development of alternate in Asia to push their companies forward in the long run. energy resources and in future may with growth, bringing their attention to Senior-level digital illiteracy may result be able to solve issues such as theft the cost structure, people and processes. Al- in many other negative factors such as loss of electricity and charging more though cost cutting has become important of business and investment opportunities, for services from power customers. in the wake of a still-recovering economy, slow time to market and poor competitive- India needs to find more investors CIOs in this region are not giving too much ness such as the Muthoot group and GE importance to reducing enterprise costs “Asian business leaders today have large- that have trusted their money with and instead are focusing more on areas ly accepted that IT has a role to play in en- the state of Tamil Nadu and Maha- such as consolidation, standardization and hancing the competitiveness of businesses. rashtra. Foreign investors may also streamlining of operations. For IT to be truly transformational to busi- trickle in slowly if the government Asian CIOs also want to attract and retain nesses, leaders need to elevate the role of promises the companies better new customers this year and are thus put- CIOs to be more strategic than operational,” working environment and easy com- ting their attention on customer relation- said Lionel Lim, president, Asia-Pacific & Ja- mercial policies. Investors may show more interest ship management applications. pan, CA Technologies. A-P in alternate sources of energy such © AniNews.in as solar power as studies indicate its bright future in the country. Invest- ments in alternate sources of power will reduce the import of raw material, give a green environment to live in and remove the gap between demand and supply of energy. Look- ing forward, the country may also see the entry of more foreign distribution franchisees to enter the electrical equipment industry provided the government agrees to revise the current prohibitive tariff. Friendly trade policies will attract more foreign investors in the electrical equipment market who have a high earning potential through export to countries such as Africa, Malaysia, Indonesia, Sri Lanka, Bangladesh and Vietnam. A-P 45 www.biztechreport.com technology

© AniNews.in ning primrose oil is also used in the treatment of eczema. Growing Vegetable oils are ingredients in lipsticks, lip-glosses, lip and eye liners, foundations Diversification and moisturizers besides being used in powdered eye shadow formulations to prevent eye irritation. Vegetable oils are made of Raw by the cold pressing of seeds or nuts. Even seeds of watermelon, cranberry, grape, Materials Used hemp, avocado, camellia, rosehip, macada- mia nut, strawberry and cucumber are used. Vitamins augment benefits of cosmetic in Cosmetics products as they enhance biochemical functions. They act as anti-oxidants, cell regener- liquids; piroctone olamine as a non-toxic ators and as catalysts to maintain biological by Shamila Janakiraman material for anti-dandruff shampoos; anti- functions of the skin. Vitamins and miner- oxidants as skin rejuvenators and so on. als obtained as fruit extracts offer original rom time immemorial human Butters with natural oils, proteins and fatty nutrients to add in skin and hair care prod- beings have displayed an innate acids are used to make creams, lotions and ucts. They provide natural colouring and desire to be attractive. If natural balms while cationic surfactants are used natural fragrance also. looks are not enough there is al- in conditioners, cleansers and shower gels. Arrowroot powder and cornstarch, a ways a plethora of cosmetics to Volcanic ash and clays are added in soaps to silky powder, act as thickeners in moisturiz- rely on. The overactive cosmetics industry detoxify, heal and rejuvenate. ers and water-based products. Hydrophobi- Fmakes us believe that we have a skin type cally modified corn starch makes cosmetics of A, B or C and a hair type of X, Y or Z and Vegetable Raw Materials in Cosmetics smooth and hence is used in lip care prod- that we need a special kind of soap or sham- ucts, moisturizers, talc and body powders. poo. Over and above that we are tempted Hydrolyzed vegetable proteins are as It absorbs body moisture and facial oil with- to splurge on cosmetics for the eye, fingers, good as animal proteins like collagen and out whitening the skin. lips, feet and so on. keratin and are derived from rice and other Oat starch, a white powder, has the anti- Whether these cosmetics make a person vegetable matter. Hydrogenated lanolin is irritating attributes of oats and is absorbent, beautiful or not they succeed in boosting also used widely. Vegetable extracts, veg- hence it finds application in body and facial one’s morale, giving greater confidence to etable oils, and vitamins are used to make powders to absorb oil and lighten cosmet- face the world although it leaves one’s purse surfactants, preservatives, hair-care prod- ics. lighter. The same personal care or cosmetic ucts and functional products like sun fil- product keeps appearing and re-appearing ters. They also add flavours, fragrances and Mineral-based Raw Materials with different names, colour, packages and exotic colours. fragrances, and with added capabilities, like Proteins are major constituents of cos- Minerals like nontoxic iron oxides are smudge-proof lipstick and quick dry nail metics and are derived from fungi and al- present in tint blushes, eye shadows and polish etc. gae. Wheat and corn gluten, soy, rice and foundations. Kaolin clay, having hydrated Perfumes, cosmetics and colors for the oat protein concentrates, and defatted oil- aluminum silicate, comes in a range of co- eyes and lips have been in vogue in the an- seeds (peanuts, almond, sunflower) are also lours from white to red. White Kaolin clay cient civilisations of India, China, Egypt and rich sources of plant protein. Wheat gluten has low absorption, is non-drying and does other regions. A few hundred years back is a cereal protein with high elasticity when not absorb skin oils. Clay minerals give a people used homemade cosmetics which hydrated. Soy proteins or globulins act as good spa experience as they ensure good were soon replaced by providers who took gelling and emulsifying agents in cosmetics. health and are known to detoxify, heal and up the task of making and selling various Ammonium chemicals are added to pro- rejuvenate. Clay is a good replacement for concoctions and publishing fashion books. teins to make conditioners which help bind synthetic colours in soaps. Soon manufacturers became more large damaged hair and reduce frizziness. Pro- Magnesium stearate is a dusting addi- scale and global. tein-fatty acid condensates feature eye and tive and is used for its anti-caking, binding, Manufacturers and advertisers join hands skin tolerability and are used in mild sham- thickening and gelling properties to give to serve the public, sometimes in unethical poos and soaps. Proteins are used widely in slip and adhesion to mineral makeup. Mica ways. The marketing budgets of cosmetic the manufacture of emulsions, lotions, gels, powder, a silicate mineral, is used to give a majors are astounding as seen from the illu- and powders and in making several skin shimmering effect as is needed in eye shad- minated bill boards, print ads and TV com- and hair care preparations. ows, blushers and lip colors. They come in mercials vying for our attention. There are Vegetable oils are used in traditional a plethora of colours and can be tinted with so many different products, names, colors, personal care formulations like hair oil oxides and other colorants. Yet another fragrances, uses and rich varied advertise- and body massage oil and colour cosmet- mineral is titanium dioxide, a whitening ments. ics. Natural oils enhance cosmetics as they agent, sun protection agent and concealer, However, cosmetic companies differ in are made of fatty acids similar to what is and it is used to whiten eye shadows and everything except in the basic raw materials present in humans, hence the benefits are powders. they use to concoct cosmetic preparations. more than what is offered by synthetic com- Sea weeds are living organisms that are Similar cosmetic products gain a unique pounds. As emollients they improve skin rich in minerals which act as skin regen- persona with branding but all of them are hydration, skin smoothness and reduce erative agents. Muds and volcanic ash make made with more or less the same ingredi- skin redness due to irritation. good body treatment cosmetics used in ents. The major components in cosmetics Rich in essential nutrients for the skin spas. The high mineral content of sea prod- are water, minerals (although not renew- like Vitamin E and essential fatty acids ucts, and sulfur found in volcanic mud and able), physically and chemically processed (EFAs), vegetable oils are important con- ash keep skin problems away and also help agricultural products, and some animal- stituents of personal care. Although we get regenerate complexion. related materials. EFAs from various foods, it is better to apply Some common ingredients include alpha them directly to the skin as part of a mois- Animal-related Raw Materials hydroxyl acids as exfoliants and preserva- turizing cream or lotion. Sweet almond in Cosmetics tives; alkalis as buffering agents to normal- oil, passion flower seed (maracuja) oil and ize Ph levels; anionic surfactants to make sesame oil act as carrier oils used widely in Raw materials of animal origin without lather in shampoos and bubbles in bath aromatherapy and pigment dispersion. Eve- involving killing of animals include such

46 www.biztechreport.com things as beeswax. Naturally derived waxes soaps, shampoos, air dyes, lipsticks, etc. turizer and it helps renew skin cells. It con- offer protection, emolliency, and consisten- Animal-related materials are sourced trols melanin production and hence pre- cy-building properties and hence are used from rendering installations from where in- vents pigmentation. in skin and hair care products. Beeswax, gredients used in a number of products are Whatever the source, whether plant, palm wax and paraffin wax come under this obtained. Cosmetic products that may con- animal or mineral, a cosmetic is expected category. tain such ingredients include soap, hair dye, to keep a person fresh and glowing through Proteins from animal sources include and nail polish besides other non-cosmetic the day. The cosmetics industry being high- collagen, elastin, keratin, milk, reticulin, ones too. ly competitive, companies are constantly fibronectin and silk (from silkworm). Also Owing to the favourable technical and being forced to differentiate and create vari- raw extracts from animal tissues like thy- cosmetic performances of vegetable pro- ous cosmetics using different ingredients mus, placenta, heart and bone marrow are teins when compared to traditionally used and sources. Besides spending on product used in cosmetics. All animal protein prepa- animal proteins, such as collagen and kera- promotions, cosmetic majors also spend a rations involve several inactivation proce- tin nowadays most cosmetic companies use lot on research and development efforts. A-P dures to remove viral and bacterial contami- only plant-based raw materials and have nants in order to eliminate disease-causing also eliminated use of animals for cosmetic agents. Some countries have banned the use testing purposes. Factoids: of certain animal parts to prevent spread of Silk obtained from silk worms is added Natural oils enhance cosmetics as they are infections. as powder which reflects light and gives a made of fatty acids similar to that present in Lanolin, a waxy substance, is produced sheen. Silk contains 18 amino acids that can humans; hence the benefits are more than by sheep and other wooly animals to repel be absorbed easily by the skin. It also re- what is offered by synthetic compounds. moisture from their coats. This makes it an flectsU V rays. Silk powder “breathes” and is Clay minerals give a good spa experience emollient in cosmetic applications and is oil absorbent and hence is used to make cos- as they are known to detoxify, heal and added in lipsticks and lip colorants as it of- metics for oily skin. It is a natural moisture- rejuvenate. fers good slip and color transfer. adjusting product that can absorb or release Stearic acid, a fatty acid derived from both moisture with changes in temperature and plant and animal sources, is employed as a humidity. Further Reading: thickener in cosmetics, moisturizers and Pearl powder obtained from pearls of • shop.newdirections.com.au/Raw-Materials- other skin care products. Hair spray, condi- oysters absorbs oils and makes skin smooth Cosmetic-Ingredients tioners, deodorants, and creams also contain with a glow besides filtering the sun’s rays. • www.nicnas.gov.au/current_issues/cosmet- stearic acid. Similarly oleic acid is used in With 20 amino acids it is an effective mois- ics.asp

FROM PAGE 44 | E-Books Bring About a Renaissance in Reading novels are devoured in one full go. Non-fic- lines in future versions. This kind of engage- all demographic reading data, including the tion ones seem to hold less interest while ment data is used to create algorithms like number of times a book was downloaded science-fiction, crime-fiction and romance in gaming software which allows readers to and read. Reader involvement with certain are all time favourites in print or online. choose different ways in which a story can books and genres can be understood. Such The information gathered from big data progress. Even characters, their appearanc- data is very useful for publishers. The soft- on E-reading habits gives the knowledge es, mannerisms and scene settings can be ware employed compiles the data so that that people prefer shorter works and hence picked by the reader. individuals are not revealed. readers were offered ‘Nook Snaps’ which Previously editors, agents or publishers Although many may argue that reading are short passages on interesting topics. conveyed what they thought readers de- a book with the smell of paper and print- Also if publishers can get an idea of when sired to authors. Now authors are getting ing ink wafting into the nostrils is a plea- a book becomes boring, they can insert a direct feedback from the audience which is sure in itself, E-books are here to stay and video, Web link or picture to keep the inter- more credible. And now the author knows if will make a lasting impression on all young est going. Also they can find out if a fiction his or her book was bought and read fully or readers who prefer staring at a screen. But series is still holding on to audience interest dumped midway. book lovers, who read for the love of read- or not and accordingly make amends. ing, will still prefer a place under a shady E-book Readers tree to read their favourite novel with no Advantages to Publishers charging device attached. The suspense of Some E-book readers feel that their pri- what is in the coming pages beatsA -Preading Like showcasing movie trailers to read the vacy has to be respected but they don’t have what was designed to your liking. audience pulse, some publishers are launch- an option as they can’t stop prying publishing digital test books before the actual book ers away from tracking their reading hab- launch. Some, like Sourcebooks, get reader its. Some sort of control has to be enacted feedback to incorporate into the print ver- to prevent retailers from sharing customer Factoids: sion. Scholastic book publishers developed information on what E-books were bought, 1. The data collected from E-books is ex- message boards and interactive games by whom, what was highlighted and so on. pected to help publishers wean readers away which let them track if stories and the char- As all details on digital reading are almost from distractions posed by social media and acters are loved by young readers or not. The public, it may deter readers from accessing games. online feedback has helped the company hit books on personal matters which they may 2. As all details on digital reading are made it big with its “39 Clues” series. Designing a not want to reveal. Millions of E-book read- almost public it may deter readers from ac- book according to reader tastes after publishers may find themselves vulnerable to pub- cessing books on personal matters. ing the printed version is a big impossibility. lisher queries. The book is either a hit or a miss. Digital companies are also making hay Another digital publisher lets readers when the sun shines. E-reading services Further Reading: choose the story line and characterization. which help readers purchase and store • libguides.mit.edu/ereadingFAQ The ideas offered by prospective readers are books in a E-library have incorporated read- • online.wsj.com/article/SB100014240527023 passed on to authors who can alter story er tracking software which keeps track of 04870304577490950051438304.html 47 www.biztechreport.com technology

© AniNews.in FROM PAGE 38 China’s Auto Industry with engine sizes of less than 1.3 litres. This is not the first time the Chinese government has tried to support the rural community, as back in 2009, farmers were offered incentives to buy automobiles. Yet there is a lot to look forward to as industry analysts have predicted this market to beat the U.S., Japan and Ger- many in 2015. The China Association of Automobile Manufacturers is also very optimistic about the automakers in the nation and it has forecasted the combined sales of auto, SUV and light truck sales in China to be about 20 million units in 2012. A few domestic companies in China are also doing well in this fiscal year. Chi- na Automotive Systems (CAAS), a large power steering manufacturer in China’s domestic market, export products to North America and supplies power steering components and systems to China’s ities to deliver future interactive video and automotive industry. Despite the dismal Asia-Pacific data services, whereas analog technology performance of the entire auto industry, cannot provide the same. CAAS did well in the months of August “Despite the rapid conversion, digi- and September and the company attri- Undergoing tal TV will still have plenty of room for butes this to the sales orders it receives growth for some time to come. Only half from its Western clients. a Digital TV of the countries covered in this report will China is also set to welcome new en- have fully converted to digital by 2017,” trants in the automobile industry. Qoros said Simon Murray, author of the report Auto Co., a startup carmaker, is planning Boom ‘Digital TV Asia Pacific 2012’. to invest about US$2.5 billion to produce “By then, Indonesia and the Philippines 150,000 units of a sedan in China next will still have analog penetration of 70 year. The company is a joint venture by Jin- Suk Yang percent and 64 percent respectively. China and will begin operations at a factory in will have 24 million analog homes and In- Changshu, near Shanghai. sia-Pacific is set to experience dia 57 million.” “The world does not need another strong growth in digital TV Khin Sandi Lynn, research analyst at car factory,” Volker Steinwascher, vice subscriptions and will see a ABI Research, also predicts that the over- chairman of Shanghai-based Qoros told penetration increase from 36 all Asia-Pacific digital cable TV subscriber Bloomberg News. “If somebody had the percent in 2011 to 83 percent base is expected to reach 213 million by idea of doing the same thing outside of in 2017, according to a new report from the end of 2012. China, I would say it would be very dif- ADigital TV Research. The global pay-TV subscribers will reach ficult. But the situation in China is dif- Thanks to their more than 1 billion 858.1 million at the end of 2012, up 5per- ferent.” populations, both India and China will cent from last year, despite a decline in Steinwascher believes in the potential have a significant influence over the re- the North America pay-TV market in 2012, of the Chinese automobile market and gion, and together they will provide 541 according to market analyst ABI Research. expects growth through first-time buy- million digital TV homes by 2017. ABI Research says that the strong ers who don’t have any particular prefer- Digital television (DTV) is a very inno- growth in digital TV subscriptions is main- ence to brands. However, Qoros will also vative type broadcasting technology that ly driven by the on-going digitization pro- have to compete with the 93 auto brands brings clear pictures and excellent sound cess in countries such as India. The Indian currently available in China and strug- quality to the TV. As compared to analog government has decided not to extend the gle against a new norm by the govern- broadcasting, DTV is considered to be deadline set for cable digitization of 12 ment, which recently limited auto sales more efficient and more flexible. Further- million homes in the four metro cities be- in Guangzhou. This move was made to more DTV technology also has the capabil- yond October 31, 2012. A-P reduce the rising pollution in China and reduce congestion on the road. The cities of Beijing, Shanghai and Guiyang are already following this norm and the addition of new city will further pressur- ize on the automakers that are already FROM PAGE 41 | Samsung’s Profile in Southeast Asia challenged by the weakening Chinese economy. Samsung phones, in order to gain from le- US has a very minor effect in the compa- Despite all these restrictions and the gally awarded damages. ny’s operations in Southeast Asia. He also present condition of the economy, au- Coco Domingo, head of the product emphasized that whatever is happening in tomakers see China as a high potential marketing group of Samsung, stated in an the US will not have any affect and that the destination because of its population interview with reporters that the patent company will continue to do well in South- and high number of people without a war between Samsung and Apple in the east Asia. A-P vehicle. A-P 48 www.biztechreport.com

Q&a new & notable

as Korea, are members of the Development Assistance Committee in Paris, which is the Commitment official group of aid donors. We also added some eastern European countries such as to Development Poland, because they are supplying data that we need to the DAC. Index 2012 Which are the top three countries in the index? What are the main Interview with Mr. factors contributing to this top inequalities, and improve lives everywhere. position? David Roodman By pairing research with action, the CGD goes beyond contributing to knowledge The top countries—Denmark, Norway, about development. We conceive of and and Sweden—are all from Northern Europe. advocate practical policy innovations in These countries are small and ethnically ho- mogenous, so I think that trust in govern- areas such as trade, aid, health, education, ment is high there. People feel that their by Jeon –Dong Hee climate change, labor mobility, private in- representatives in parliament are just like vestment, access to finance, and global gov- them. The result is strong social welfare state David Roodman is a senior fellow at the ernance in order to foster shared prosperity domestically. That gets translated in foreign Center for Global Development. Roodman in an increasingly interdependent world. policy into large aid budgets. These countries has been the architect and manager of the Among our more recent active initiatives spend about 1 percent of GDP on foreign aid. Commitment to Development Index since are the 2012 Commitment to Development The United States spends only 0.2 percent the project’s inception in 2002. The Index Index, Carbon Monitoring for Action, mi- ranks the world’s richest countries based on and South Korea only 0.1 percent. gration as a tool for disaster recovery, and their dedication to policies that benefit the biometrics research. 5 billion people living in poorer nations; it South Korea is very low in the is widely recognized as the most compre- Can you please explain the Commitment to Development hensive measure of rich-country policies to- Commitment to Development Index 2012. What are the reasons wards the developing world. Index? How it is reached? What for this low ranking? Roodman’s widely praised book Due are the important areas which South Korea ranks last on the CDI, just Diligence confronts questions about the behind Japan. Both countries have more impacts of microfinance and how it should are taken into account? inward-oriented, insular policies than the be supported. He wrote the book through The important idea of the Commit- other 25 countries. A big factor is that Japan a path-breaking Microfinance Open Book ment to Development Index is that all and South Korea block almost all imports Blog, where he shared questions, discover- nations of the world are linked in many of rice from poorer countries such as Viet- ies, and draft chapters. ways—through trade, investment, the nam and Burma. Also, the two countries do Roodman previously worked at the environment, military affairs, technol- not accept many immigrants from develop- Worldwatch Institute, where he wrote ogy and ideas, and more. Wealthy nations ing countries, which means fewer people three monographs on environmental is- such as Korea and the United States should can come to work, earn money, and send it sues, and one on debt, titled ‘Still Waiting help poorer countries develop by working home to their families. Also, they give little for the Jubilee: Pragmatic Solutions for the through all these channels. In general, it foreign aid for their size and participate Third World Debt Crisis’. He authored the rewards greater connections: more foreign very little in international peacekeeping. book ‘The Natural Wealth of Nations: Har- aid, trade, and investment; more openness nessing the Market for the Environment’, to immigration, more participation in in- What does South Korea need to and he graduated magna cum laude from ternational peacekeeping operations, fewer do improve its ranking in the Harvard College with a degree in theoreti- restrictions on the use of patents and other index then? cal mathematics. intellectual property. But it penalizes pol- The biggest thing it can do is allow more lution of the atmosphere and depletion of imports of rice from other countries. If Ko- Q: Can you please introduce ocean fisheries. us to the Center for Global rean consumers don’t want the rice, that’s What are the main findings of fine. But the government should allow con- Development? What is the main sumers to decide. In Japan, consumers are mandate of the center? Please tell the Commitment to Development starting to show more interest in foreign us about the recent main projects Index 2012? rice. undertaken by the center. One big message is that helping poor na- Finally, what do you think are the A: The Center for Global Development tions is about much more than foreign aid. (CGD) works to reduce global poverty and Trade, environment, and other areas matter most important steps the world inequality through rigorous research and at least as much for helping to spread pros- must take to reduce the growing active engagement with the policy commu- perity. Also, the winners of the CDI can be gap between rich and the poor? nity to make the world a more prosperous, proud, even though they are barely average In the long run, the biggest challenge is just, and safe place for us all. CGD conducts in policy categories. This means that even slowing climate change. Wealthy nations independent, high-quality research and the best can do better, and that all countries must lead the way in building an energy analysis on a wide range of topics related have much room for improvement. This is economy that is more efficient and that re- to how rich country policies impact people especially true for large economies such as lies more on the wind and sun for power. in the developing world. These include: the U.S., France, Japan, and South Korea, all We also need to reduce our consumption aid effectiveness, education, globalization, of which rank in the bottom half of the CDI. of beef and tropical timber, both of which health, migration, and trade. Thus the countries with the most potential cause high greenhouse gas emissions. One The policies and practices of the rich to help development, because of their eco- key to this will almost certainly be policies and the powerful—in rich nations, as well nomic power, are doing the least to realize that raise the price of climate-damaging ac- as in the emerging powers, international that potential. tivities. Currently, South Korea has a nearly institutions, and global corporations—have How many countries are included 100 percent tax on gasoline, which is good. significant impacts on the world’s poor peo- Other forms of oil and coal and beef should ple. We aim to improve these policies and in the index? What is the criteria be taxed too. And other nations, notably the practices through research and policy en- for inclusion of a country? United States, must pursue similar policies gagement to expand opportunities, reduce This year there are 27. Almost all, such in cooperation. A-P 50 www.biztechreport.com