Sie sind auf Seite 1von 11

September 21, 2005

The IMF Center of the International Monetary Fund, in partnership with the U.S.'s National
Council on Economic Education (NCEE), has launched an instructional program for
secondary school students about the effects of globalization and the importance of
understanding the dynamics of the global economy. Thinking Globally: Effective Lessons for
Teaching about the Interdependent World Economy are eight classroom-tested lessons on
globalization, comparative advantage, economic growth, exchange rates, and other
international topics.

Lessons #1 and 2 focus on the IMF and its role in the global economy.

Lesson #1: Ten Basic Questions about Globalization focuses on the history, impact and future
implications of living in a globalized economic system.

Lesson #2: What is the IMF and What Does it Do? Introduces the IMF and its role in fostering global
economic stability through monetary and financial cooperation.

Lessons #3-8, on trade, international organizations, currencies and foreign


exchange, are previously-released lesson plans produced by NCEE.

Lesson #3: Why People Trade Students participate in a trading simulation and use this experience to
discover the benefits of free trade.

Lesson #4: Comparative Advantage and Trade in a Global Economy Students observe or participate
in a role-play situation in which one person is better at both of two activities.

Lesson #5: "Hey, Hey! Ho, Ho! Why Do We Need the WTO?" Several activities are used to introduce
students to six international institutions that play important economic roles, especially in the areas of
international trade, finance and development.

Lesson #6: Why are Some Nations Wealthy? Students work in groups to examine data from several
nations regarding size, natural resources and population.

Lesson #7: Foreign Currencies and Foreign Exchange Students participate in a simulated foreign
exchange market. Provides an opportunity for students to use supply and demand analysis to explain
how flexible exchange rates are established in currency markets.

Lesson #8: Exchange Rates: Money around the World Students participate in two auctions to
demonstrate the determination of flexible exchange rates and the need for foreign currency to
purchase goods from other countries.

See also:
Press Release: IMF Launches Lesson Plans for Secondary School Economics Teachers,
September 21, 2005 (http://www.imf.org/external/np/sec/pr/2005/pr05211.htm)

Lesson plans #1-8 are available in PDF format here:


http://www.imf.org/external/np/exr/center/econed/index.htm#think
/HVVRQ:KDW,VWKH,QWHUQDWLRQDO0RQHWDU\)XQG
DQG:KDW'RHV,W'R"

 /," 1
/" Ê WLRQSUREOHPV,QWKHVHZD\VWKH,0)VHHNV
WRSURPRWHORQJWHUPJURZWKDQGLPSURYHWKH
(FRQRPLFV VWDQGDUGRIOLYLQJIRUSHRSOHLQLWVPHPEHU
7KH,QWHUQDWLRQDO0RQHWDU\)XQG ,0) LV FRXQWULHV
DILQDQFLDOLQVWLWXWLRQWKDWZRUNVWRKHOSLWV
PHPEHUFRXQWULHVLPSURYHWKHLUHFRQRPLHVLQ
SDUWWKURXJKVWDELOL]LQJH[FKDQJHUDWHVDQG

"
*/-
DGGUHVVLQJEDODQFHRISD\PHQWVSUREOHPV %DODQFHRISD\PHQWV
0RVWRIWKHFRXQWULHVLQWKHZRUOGEHORQJWR )LQDQFLDOFULVLV
WKH,0)DVRILWKDGPHPEHUV ,QIODWLRQ
$OWKRXJKWKHGHWDLOVRILWVSROLFLHVDUHFRPSOH[ 3RYHUW\
DQGVRPHZKDWDEVWUDFWKLJKVFKRROVWXGHQWV 5ROHRI,QWHUQDWLRQDO0RQHWDU\)XQG
FDQXQGHUVWDQGWKHEDVLFLQWHQWDQGSXUSRVH 7UDQVLWLRQHFRQRP\
RIWKH,0)E\ORRNLQJDWH[DPSOHVRILWVSUR
JUDPV7KH,0)LVIUHTXHQWO\LQWKHQHZVDQG
" / /Ê-/ , -
KDYLQJDEDVLFXQGHUVWDQGLQJRIZKDWLWLVDQG
ZKDWLWGRHVFDQKHOSWRGHP\VWLI\WKHVXEMHFW  ,QVWLWXWLRQVHYROYHLQPDUNHWHFRQRPLHV
RIWKHJOREDOHFRQRP\ WRKHOSLQGLYLGXDOVDQGJURXSVDFFRPSOLVK
WKHLUJRDOV%DQNVODERUXQLRQVFRUSRUD
5HDVRQLQJ WLRQVOHJDOV\VWHPVDQGQRWIRUSURILW
:KHQLQWHUQDWLRQDOWUDGHDQGRWKHULQWHUQD RUJDQL]DWLRQVDUHH[DPSOHVRILPSRUWDQW
WLRQDOILQDQFLDOWUDQVDFWLRQVWDNHSODFHFXU LQVWLWXWLRQV$GLIIHUHQWNLQGRILQVWLWXWLRQ
UHQF\KDVWREHH[FKDQJHGVRPHZKHUHDORQJ FOHDUO\GHILQHGDQGZHOOHQIRUFHGSURSHUW\
WKHZD\$EXVLQHVVSHUVRQLQ%UD]LOZKR ULJKWVLVHVVHQWLDOWRDPDUNHWHFRQRP\
H[SRUWVFRIIHHEHDQVZDQWVWREHSDLGHLWKHU
LQWKH%UD]LOLDQFXUUHQF\WKHUHDORULQDFXU  ,QYHVWPHQWLQIDFWRULHVPDFKLQHU\QHZ
UHQF\WKDWFDQHDVLO\EHH[FKDQJHGIRUWKH WHFKQRORJ\DQGWKHKHDOWKHGXFDWLRQDQG
UHDO7KLVEXVLQHVVSHUVRQZRXOGSUREDEO\EH WUDLQLQJRISHRSOHFDQUDLVHIXWXUHVWDQ
KDSS\WREHSDLGLQ86GROODUVHXURVRU\HQ GDUGVRIOLYLQJ
VLQFHPRVWEDQNVLQ%UD]LOZLOOH[FKDQJHWKHVH
FXUUHQFLHVIRUUHDLV7KHUHIRUHWKHFRXQWU\ " 
/6 -
WKDWLPSRUWVWKHVHFRIIHHEHDQVZDQWVWRKDYH 7KHVWXGHQWVZLOO
DUHVHUYHRI86GROODUVHXURVRU\HQLQLWV  ([SODLQWKHEDVLFUROHDQGIXQFWLRQVRIWKH
EDQNVWRXVHWRSD\WKHH[SRUWHULQ%UD]LODQG ,QWHUQDWLRQDO0RQHWDU\)XQG
IRURWKHUJRRGVDQGVHUYLFHVLWLPSRUWVIURP
DEURDG  7DNHSDUWLQDJURXSDFWLYLW\LQYROYLQJILYH
FRXQWU\FDVHVWXGLHVDQGWKH,0)
&RXQWULHVIDFHSUREOHPVZKHQWKH\GRQRW
KDYHHQRXJKIRUHLJQFXUUHQF\UHVHUYHVWRSD\  6XPPDUL]HLQIRUPDWLRQDERXWILYHFRXQ
EDFNIRUHLJQGHEWVDQGWRVXSSRUWWKHFXUUHQF\ WULHVDQGWKHLU,0)VXSSRUWHGSURJUDPV
H[FKDQJHLPSRUWHUVLQWKHLUFRXQWU\UHTXLUHWR
SXUFKDVHJRRGVDQGVHUYLFHVIURPDEURDG7KH  --" Ê -
,*/"
,0)SURYLGHVORDQVWRKHOSFRXQWULHVRYHUFRPH
DWHPSRUDU\VKRUWIDOOLQIRUHLJQFXUUHQF\,W 7KHVWXGHQWVOHDUQDERXWWKHEDVLFUROHDQG
DOVRSURYLGHVSROLF\DGYLFHDQGWHFKQLFDODVVLV IXQFWLRQVRIWKH,QWHUQDWLRQDO0RQHWDU\)XQG
WDQFHWRKHOSZLWKPDFURHFRQRPLFVWDELOL]D WKURXJKUHDGLQJFDVHVWXGLHVDERXW,0)VXS
SRUWHGSURJUDPVLQ%DUEDGRV(VWRQLD.RUHD

‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1< 
/(6621:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"

7XUNH\DQG8JDQGD,QVPDOOJURXSVWKH\ UHQF\GHYDOXDWLRQHFRQRPLFJURZWK(XURSHDQ
SUHSDUHDQGSUHVHQWDSRVWHUVXPPDUL]LQJWKH 8QLRQH[FKDQJHUDWHVILVFDOSROLF\IRUHLJQ
FDVHVWXG\WRWKHFODVV LQYHVWPHQWJRYHUQPHQWEXGJHWGHILFLW*'3
1RWH7KHPDWHULDOXVHGLQWKLVOHVVRQLVSUL *'3SHUFDSLWDLQIODWLRQPDFURHFRQRPLFSROL
PDULO\IURPWKH,0):HEVLWH KWWSZZZLPI FLHVPDUNHWHFRQRPLFV\VWHPPRQHWDU\SROLF\
RUJ DQGSUHVHQWVWKHYLHZSRLQWRIWKH,0) SHJJHGH[FKDQJHUDWHSODQQHGHFRQRPLFV\V
7KLVOHVVRQGRHVQRWDGGUHVVFRQWURYHUVLHVDQG WHPDQGWD[ORRSKROHV,I\RXUVWXGHQWVDUH
FULWLFLVPVRIWKH,0))RUWKH,0)SHUVSHFWLYH QRWIDPLOLDUZLWKWKHVHWHUPV\RXPD\ZLVK
RQWKHFULWLFLVPVIROORZWKHOLQNVRQLWV:HE WRKDYHWKHGHILQLWLRQVDYDLODEOH(FRQRPLFV
VLWHWR´)RU6WXGHQWVµDQGWKHQWR´)$4VµDQG GLFWLRQDULHVDUHDYDLODEOHRQWKH:HEVLWHRI
VHHWKHTXHVWLRQ´+RZGRHVWKH,0)UHVSRQGWR WKH$PHULFDQ(FRQRPLF$VVRFLDWLRQXQGHU
FRPPRQFULWLFLVPV"µ ´5HVRXUFHVIRU(FRQRPLVWVµDWKWWSZZZYDQ
GHUELOWHGX$($
/ Ê, +1,
 $VNWKHVWXGHQWVZKDWWKH\NQRZRUZKDW
PLQXWHV WKH\KDYHKHDUGDERXWWKH,QWHUQDWLRQDO
0RQHWDU\)XQG ,0) $QVZHUVZLOO
/ ,- YDU\6RPHVWXGHQWVPD\KDYHKHDUG
 9LVXDO RI,0)VXSSRUWHGSURJUDPVLQGLIIHU
HQWFRXQWULHV2WKHUVPD\EHDZDUH
 (QRXJKFRSLHVRI$FWLYLW\$(VRWKDW RISURWHVWVDJDLQVWWKH,0)DQGRWKHU
HDFKVWXGHQWKDVRQHFDVHVWXG\)RU JOREDORUJDQL]DWLRQVVXFKDVWKH
H[DPSOHPDNHVL[FRSLHVRI$FWLYLW\$ :RUOG%DQN2WKHUVWXGHQWVPD\QRW
(IRUDFODVVRIVWXGHQWVVLQFHWKHUH KDYHKHDUGRIWKH,0)RUPD\FRQIXVH
DUHILYHFDVHVWXGLHV LWZLWKRWKHURUJDQL]DWLRQV

 )LYHODUJHVKHHWVRIEXWFKHUSDSHU RU  'LVSOD\9LVXDO´:KDW,VWKH
VRPHWKLQJFRPSDUDEOHVXFKDVILYHODUJH ,QWHUQDWLRQDO0RQHWDU\)XQGDQG:KDW
VKHHWVRIFRQVWUXFWLRQSDSHU FRORUIXO 'RHV,W'R"µ5HDGWKHILUVWWKUHHTXHV
PDUNHUV RUPRUH DQGWDSHWRKDQJ WLRQVDQGEULHIO\GLVFXVVWKHDQVZHUVZLWK
SRVWHUVRQWKHFODVVURRPZDOO 8VLQJ WKHVWXGHQWV%ULHIDQVZHUVWRWKHTXHV
ODUJHVKHHWVRISDSHUDQGPRUHPDUNHUV WLRQVDUHSURYLGHGEHORZPRUHGHWDLOFDQ
ZLOOHQDEOHVHYHUDOVWXGHQWVWRZRUNRQD EHIRXQGDWKWWSZZZLPIRUJ
SRVWHUDWRQHWLPH   $:KDWLVWKH,QWHUQDWLRQDO0RQHWDU\
)XQG"7KH,QWHUQDWLRQDO0RQHWDU\
 2SWLRQDO $ODUJHZDOOPDSDQGRUFRS )XQGIUHTXHQWO\FDOOHGWKH,0)LV
LHVRIZRUOGPDSVWRGLVWULEXWHWRWKH DQLQGHSHQGHQWDJHQF\RIWKH8QLWHG
VWXGHQWV<RXFDQILQGZRUOGPDSVRQ 1DWLRQVV\VWHPHVWDEOLVKHGLQWR
WKH,QWHUQHWDWKWWSZZZOLEXWH[DV SURPRWHWKHKHDOWKRIWKHZRUOGHFRQR
HGXPDSVZRUOGKWPORUDWKWWSZZZFLD P\0RVWRIWKHFRXQWULHVLQWKHZRUOG
JRYFLDSXEOLFDWLRQVPDSVSXEPDSVSROLWL EHORQJWRWKH,0)DVRILWKDG
FDOBZRUOGKWP PHPEHUV
  %:KDWDUHWKHSXUSRVHVRIWKH,0)"
7KH,0)·VPDLQSXUSRVHVLQFOXGH
*,"
1,
LPSURYLQJWKHKHDOWKRIWKHZRUOG
1RWH7KHFDVHVWXGLHVLQWKLVOHVVRQXVHWKH HFRQRP\E\SURPRWLQJWKHH[SDQVLRQ
IROORZLQJHFRQRPLFWHUPVWKDWDUHQRWGLUHFWO\ RIZRUOGWUDGHSURPRWLQJWKHVWDELO
GHILQHGLQWKHOHVVRQ$VLDQILQDQFLDOFULVLV LW\RIH[FKDQJHUDWHVDQGKHOSLQJ
EDODQFHRISD\PHQWVGHILFLWDQGVXUSOXVFHQ FRXQWULHVFRUUHFWEDODQFHRISD\PHQWV
WUDOEDQNFRPPXQLVPFXUUHQF\ERDUGFXU SUREOHPV $FRXQWU\·VEDODQFHRI

 ‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1<
:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"/(6621

SD\PHQWVLVDPHDVXUHRIWKHPRQH\ DSRVWHUVXPPDUL]LQJSRLQWVIURPWKHLU
IORZLQJLQDQGRXWRIWKHFRXQWU\GXU FDVHVWXG\:KHQWKH\KDYHILQLVKHGWKH
LQJD\HDU,IPRUHPRQH\IORZVRXW SRVWHUVHDFKJURXSZLOOKDYHWKUHHWRILYH
WKDQLQWKHFRXQWU\UXQVDEDODQFH PLQXWHVWRSUHVHQWLWVSRVWHUWRWKHFODVV
RISD\PHQWVGHILFLWDQGPD\QRWKDYH (QFRXUDJHWKHVWXGHQWVWRDGGUHVVWKHGLI
HQRXJKIRUHLJQFXUUHQF\UHVHUYHVWR IHUHQWVHFWLRQVRIWKHFDVHVWXG\RQWKHLU
ILQDQFHLPSRUWVDQGWRSD\RIIIRUHLJQ SRVWHU:KDWFRXQWU\DUHWKH\VWXG\LQJ"
GHEWV :KDWZDVWKHSUREOHP":KDWGLGWKH,0)
  &+RZGRHVWKH,0)ZRUNWRDFFRP GR":KDWZHUHWKHUHVXOWV"
SOLVKLWVSXUSRVHV"7KH,0)PRQLWRUV  127(6WXGHQWSRVWHUVWHQGWREHYDULHG
HFRQRPLFGHYHORSPHQWVDQGSROLFLHV DQGFUHDWLYH+RZHYHULIDJURXSKDVWURX
RILWVPHPEHUFRXQWULHV,WSURYLGHV EOHJHWWLQJVWDUWHGVXJJHVWWKDWWKHVWX
SROLF\DGYLFHWRPHPEHUFRXQWULHV GHQWVGLYLGHWKHSDSHULQWRIRXUVHFWLRQV
WRKHOSWKHPZLWKSUREOHPVLQWKHLU DQGGHYRWHRQHVHFWLRQWRHDFKSDUWRIWKH
HFRQRPLHV,WOHQGVPRQH\WRPHPEHU FDVHVWXG\0RUHWKDQRQHVWXGHQWFDQ
FRXQWULHVZLWKEDODQFHRISD\PHQWV ZRUNRQWKHSRVWHUDWRQHWLPH<RXPD\
SUREOHPVWRKHOSUHGXFHSRYHUW\DQG ZLVKWRDSSRLQWVWXGHQWVLQHDFKJURXSWR
WRDGGUHVVRWKHUHFRQRPLFSUREOHPV,W EHWKHOHDGHUWKHSULPDU\SUHVHQWHUDQG
SURYLGHVWHFKQLFDODVVLVWDQFHWRPHP WKHOLDLVRQZLWKWKHWHDFKHU
EHUFRXQWULHVWKDWQHHGKHOSZLWKPDF
URHFRQRPLFSROLFLHV  :KHQWKHJURXSVKDYHILQLVKHGWKHSRVW
HUVFDOORQHDFKJURXSWRSUHVHQWLWV
 5HDG4XHVWLRQ'RQ9LVXDO :KDWDUH SRVWHUDQGFDVHVWXG\7DSHWKHILQLVKHG
VRPHH[DPSOHVRIKRZWKH,0)KDVWULHG SRVWHUVWRWKHERDUGRUZDOO
WRKHOSFRXQWULHV" $QQRXQFHWKDWWKH
VWXGHQWVZLOOSURYLGHWKHDQVZHUWRWKLV
"-1,
TXHVWLRQ7KH\ZLOOOHDUQPRUHDERXWWKH
,0)DQGLWVSURJUDPVWKURXJKUHDGLQJ 6XPPDUL]HWKHOHVVRQE\DJDLQGLVSOD\LQJ
FDVHVWXGLHVDERXWFRXQWULHVWKDWKDYH 9LVXDO7KLVWLPHFDOORQWKHVWXGHQWVWR
UHFHLYHG,0)DVVLVWDQFHIRUGLIIHUHQW DQVZHUWKHTXHVWLRQVEDVHGRQZKDWWKH\
SUREOHPV8VLQJDZRUOGPDSLIDYDLODEOH OHDUQHGIURPUHDGLQJWKHFDVHVWXGLHVDQG
ORFDWHWKHFRXQWULHVRI%DUEDGRV(VWRQLD OLVWHQLQJWRWKHSUHVHQWDWLRQV$QVZHUVWR
6RXWK.RUHD7XUNH\DQG8JDQGD7HOO 4XHVWLRQ'VKRXOGLQFOXGHGHWDLOVIURP
WKHVWXGHQWVWKDWWKHVHDUHWKHFRXQWULHV WKHFDVHVWXGLHV%DUEDGRVKDGDEDODQFH
WKH\ZLOOVWXG\'LYLGHWKHFODVVLQWRILYH RISD\PHQWVSUREOHP(VWRQLDQHHGHGKHOS
JURXSVDQGJLYHHDFKJURXSFRSLHVRIRQH WRPDNHWKHWUDQVLWLRQIURPDSODQQHG
RIWKHFDVHVWXGLHVIURP$FWLYLW\$( WRDPDUNHWHFRQRP\.RUHDQHHGHGKHOS
 127(7KHVWXGHQWVFDQORFDWHPRUH LQUHFRYHULQJIURPWKH$VLDQILQDQFLDO
LQIRUPDWLRQDERXWWKHVHFRXQWULHVDW FULVLV7XUNH\KDGWRGHFUHDVHORQJWHUP
KWWSZZZLPIRUJ 6HH´,QIRUPDWLRQE\ LQIODWLRQDQG8JDQGDQHHGHGKHOSWR
&RXQWU\$=µ KWWSZZZZRUOGEDQNRUJ UHGXFHLWVIRUHLJQGHEW7KH,0)RIIHUHG
6HH´&RXQWULHVDQG5HJLRQVµ DQGKWWS DGYLFHWHFKQLFDODVVLVWDQFHDQGORDQV
ZZZFLDJRY 6HH´7KH:RUOG)DFWERRNµ  7KH,0)VXSSRUWHGSURJUDPVGHVFULEHG
JHQHUDOO\HQFRXUDJHGFRXQWULHVWRGHYHORS
 *LYHHDFKJURXSDVKHHWRIEXWFKHUSDSHU IUHHPDUNHWLQVWLWXWLRQVWRUHGXFHWKHVL]H
RUDODUJHVKHHWRIFRQVWUXFWLRQSDSHU3XW RIWKHH[FHVVLYHJRYHUQPHQWGHILFLWVDQG
VHYHUDOFRORUHGPDUNHUVLQDFHQWUDODUHD WRFRQGXFWSUXGHQWPRQHWDU\SROLFLHV
IRUDOOJURXSVWRXVH7HOOWKHVWXGHQWVWKDW $OORIWKHSURJUDPVGHVFULEHGZHUHVXF
WKH\ZLOOKDYHDERXWPLQXWHVWRUHDG FHVVIXOWRVRPHH[WHQW+RZHYHULWVKRXOG
DQGGLVFXVVWKHLUFDVHVWXG\DQGPDNH EHHPSKDVL]HGWKDWLQDJOREDOHFRQRP\

‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1< 
/(6621:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"

PDFURHFRQRPLFSROLFLHVDUHFRPSOH[DQG
FDQEHDIIHFWHGE\PDQ\IRUFHVRXWVLGHRI
WKHFRQWURORIWKHDXWKRULWLHV1RSROLFLHV
LQFOXGLQJWKRVHSURPRWHGE\WKH,0)FDQ
EHH[SHFWHGWRZRUNDOORIWKHWLPH

 ‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1<
:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"/(6621

9,68$/
:+$7,67+(,17(51$7,21$/021(7$5<)81'$1'
:+$7'2(6,7'2"

$:KDWLVWKH,QWHUQDWLRQDO0RQHWDU\)XQG"

%:KDWDUHWKHSXUSRVHVRIWKH,0)"

&+RZGRHVWKH,0)ZRUNWRDFFRPSOLVK
LWVSXUSRVHV"

':KDWDUHVRPHH[DPSOHVRIKRZWKH,0)KDV
WULHGWRKHOSFRXQWULHV"

‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1< 
/(6621:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"

$&7,9,7<$
&$6(678'<%$5%$'26$1'
7+(,17(51$7,21$/021(7$5<)81' ,0)
7KH&RXQWU\
%DUEDGRVLVD&DULEEHDQLVODQGFRXQWU\ORFDWHGLQWKH1RUWK$WODQWLF2FHDQ,WZDVXQLQKDELWHGZKHQWKH%ULWLVK
VHWWOHGLWLQ6ODYHVZRUNHGRQFRORQLDOVXJDUSODQWDWLRQVXQWLOVODYHU\ZDVDEROLVKHGLQ%DUEDGRV
EHFDPHLQGHSHQGHQWIURP%ULWDLQLQDQGKDVEHHQSROLWLFDOO\VWDEOHVLQFHWKHQ+LVWRULFDOO\WKHHFRQRP\
ZDVGHSHQGHQWRQWKHSURGXFWLRQRIVXJDUFDQHEXWGXULQJWKHVWRXULVPDQGOLJKWPDQXIDFWXULQJEHFDPH
PRUHLPSRUWDQW%DUEDGRVDOVRSURYLGHVILQDQFLDOVHUYLFHVIRUIRUHLJQEXVLQHVVHVZKLFKKHOSVWREULQJLQIRUHLJQ
FXUUHQF\

7KH3UREOHP
7KHEDODQFHRISD\PHQWV %23 LVDUHFRUGRIDOOWKHPRQH\FRPLQJLQWRDFRXQWU\IURPDEURDGDQGDOOWKH
PRQH\JRLQJRXWRIDFRXQWU\WRRWKHUFRXQWULHVGXULQJDVSHFLILFWLPHSHULRGXVXDOO\RQH\HDU)RUH[DPSOH
PRQH\FRPHVLQWR%DUEDGRVZKHQWRXULVWVVSHQGPRQH\WKHUHDQGZKHQRWKHUFRXQWULHVLPSRUWVXJDUIURP
%DUEDGRV0RQH\JRHVRXWZKHQSHRSOHLQ%DUEDGRVEX\IRUHLJQJRRGVRUPDNHLQYHVWPHQWVLQRWKHUFRXQWULHV

,QWKHHDUO\VWKH%23GHILFLWLQFUHDVHGVKDUSO\PRUHPRQH\ZDVJRLQJRXWRI%DUEDGRVWKDQFRPLQJLQ
7KLVZDVGXHLQSDUWWRDGURSLQWRXULVPDQGDODUJHLQFUHDVHLQWKHJRYHUQPHQWEXGJHWGHILFLW7KHUHZHUHQ·W
HQRXJKIRUHLJQFXUUHQF\UHVHUYHVWRSD\IRUWKHLPSRUWVDQGRWKHUDVVHWVWKDWSHRSOHLQ%DUEDGRVZDQWHGWREX\
IURPDEURDG,QIODWLRQZDVRQWKHULVHHFRQRPLFJURZWKZDVVWDJQDQWDQGXQHPSOR\PHQWZDVKLJK%DUEDGRV
VRXJKWKHOSIURPWKH,0)

7KH,0)VXSSRUWHG3URJUDP
%DUEDGRVUHTXHVWHGILQDQFLDODVVLVWDQFHIURPWKH,0)ZKLFKLVQRUPDOO\JUDQWHGLIWKHJRYHUQPHQWLPSOHPHQWV
DQHFRQRPLFUHIRUPSURJUDPGHVLJQHGWRHOLPLQDWHWKHXQGHUO\LQJSUREOHPVRYHUWLPH7KH,0)VXSSRUWHGSUR
JUDPLQ%DUEDGRVIRFXVHGRQLPSURYLQJWKHHFRQRP\WKURXJKVRXQGILVFDODQGPRQHWDU\SROLFLHVDQGRQKHOSLQJ
WRPDNHWKHFRXQWU\·VEXVLQHVVHVPRUHFRPSHWLWLYHLQWKHZRUOG7KHJRYHUQPHQWWLJKWHQHGILVFDOSROLF\E\GUDVWL
FDOO\FXWWLQJLWVVSHQGLQJDQGLPSURYLQJWKHHIILFLHQF\RIWKHWD[V\VWHP:DJHVRIJRYHUQPHQWZRUNHUVZHUHFXW
DQGVRPHJRYHUQPHQWZRUNHUVZHUHODLGRIIDQGHQFRXUDJHGWRILQGZRUNLQWKHSULYDWHVHFWRU 7KLVDFWLRQZDV
ODWHUUXOHGLOOHJDODQGWKHJRYHUQPHQWKDGWRUHVWRUHZDJHVZKHQWKHHFRQRP\LPSURYHG 7KHFHQWUDOEDQNXVHG
PRQHWDU\SROLF\WRUDLVHLQWHUHVWUDWHVWKLVDFWLRQGLVFRXUDJHGH[FHVVLYHVSHQGLQJDQGUHGXFHGLQIODWLRQ,QWKH
SULYDWHVHFWRUDZDJHSURJUDPZKLFKNHSWODERUFRVWVGRZQZDVLPSOHPHQWHG7KLVPHDQWWKDW%DUEDGRVFRXOG
NHHSGRZQWKHSULFHVRILWVH[SRUWVDQGFRPSHWHEHWWHUZLWKRWKHUFRXQWULHV,WVORZSULFHVDOVRDWWUDFWHGWRXU
LVWV$OORIWKHVHPHDVXUHVZHUHGHVLJQHGWRFXUWDLOLQIODWLRQDQGLPSURYHORQJWHUPHFRQRPLFJURZWK7KLVZRXOG
DWWUDFWPRUHIRUHLJQFXUUHQF\WR%DUEDGRVE\LQFUHDVLQJH[SRUWVWRXULVPDQGIRUHLJQLQYHVWPHQWDQGZRXOGKHOS
WREULQJDQHQGWRWKHXQVXVWDLQDEOH%23GHILFLW

$OWKRXJKVRPHRIWKHVHPHDVXUHVVRXQGKDUVKDQGPLJKWEHXQSRSXODUWKHUHDUHVHOGRPPDQ\RSWLRQVIRUFRU
UHFWLQJD%23GHILFLW2QHSRVVLEOHDOWHUQDWLYHZRXOGKDYHEHHQIRU%DUEDGRVWRGHYDOXHLWVFXUUHQF\UHVXOWLQJLQ
ORZHUSULFHVIRUWRXULVWVLQ%DUEDGRVDQGWKRVHEX\LQJ%DUEDGRV·H[SRUWV+RZHYHUWKHJRYHUQPHQWZDVFRPPLW
WHGWRPDLQWDLQLQJWKHYDOXHRIWKH%DUEDGRVGROODUZKLFKZDVSHJJHGWRWKH86GROODU

7KH2XWFRPHV
%DUEDGRVDQGWKH,0)DFKLHYHGWKHGHVLUHGJRDOVLQDUHODWLYHO\VKRUWSHULRGRIWLPH7KH%23GHILFLWWXUQHGLQWR
DVXUSOXVDQGUHVHUYHVRILQWHUQDWLRQDOFXUUHQF\LQFUHDVHGLQGXHWRLQFUHDVHGWRXULVPIURP(XURSHDQG
DGURSLQJRYHUQPHQWVSHQGLQJDQGWKHDVVRFLDWHGLPSRUWV$SURJUDPZDVLQLWLDWHGWRUHYLYHWKHVXJDULQGXV
WU\WRLQFUHDVHH[SRUWV$OWKRXJKWKHUHZHUHLQLWLDOGHFOLQHVLQ*'3 ZLWKUHVXOWLQJLQFUHDVHVLQXQHPSOR\PHQW 
GXHWRWKHGHFUHDVHLQWKHVL]HRIWKHJRYHUQPHQWVHFWRU*'3JURZWKSLFNHGXSE\,QIODWLRQIHOOWRD
YHU\PDQDJHDEOHUDWHRIRQHSHUFHQW+RZHYHUWKHUHLVDOZD\VDSRVVLELOLW\WKDWSUREOHPVZLOODULVHDJDLQLQWKH
IXWXUHEHFDXVHWKH%DUEDGRVHFRQRP\UHOLHVKHDYLO\RQWRXULVPZKLFKKDVLWVXSVDQGGRZQV

 ‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1<
:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"/(6621

$&7,9,7<%
&$6(678'<(6721,$$1'
7+(,17(51$7,21$/021(7$5<)81' ,0)

7KH&RXQWU\
(VWRQLDLVDQ(DVWHUQ(XURSHDQFRXQWU\ERUGHUHGE\WKH%DOWLF6HD/DWYLDDQG5XVVLD(VWRQLDZDVIRUFHGLQWR
WKH6RYLHW8QLRQLQDQGUHPDLQHGXQGHUFRPPXQLVWFRQWUROXQWLOZKHQWKH6RYLHW8QLRQEURNHXS
$ORQJZLWKRWKHUIRUPHU6RYLHW5HSXEOLFV(VWRQLDLVDWUDQVLWLRQHFRQRP\LWLVLQWKHSURFHVVRIFKDQJLQJIURP
DSODQQHGHFRQRPLFV\VWHPWRDPDUNHWHFRQRPLFV\VWHP(VWRQLDLVFRQVLGHUHGRQHRIWKHPRVWHFRQRPLFDOO\IUHH
DQGVXFFHVVIXOIRUPHU6RYLHW5HSXEOLFVDQGZDVDGPLWWHGWRWKH(XURSHDQ8QLRQLQ

7KH3UREOHP
7KHHDUO\\HDUVRIWUDQVLWLRQZHUHGLIILFXOWLQ(VWRQLDDQGWKHRWKHUIRUPHU6RYLHW5HSXEOLFV7KHHFRQRP\H[SH
ULHQFHGSHUFHQWLQIODWLRQLQD\HDUDIWHUWKHHFRQRP\VZLWFKHGWRDIUHHPDUNHWV\VWHP7KLVPHDQV
WKDWRQDYHUDJHZKDWFRVW(VWRQLDQNURRQVLQFRVWNURRQVLQ3URGXFWLRQIHOOSHUFHQW
UHVXOWLQJLQGHFOLQHVLQLQFRPH+RZHYHUXQHPSOR\PHQWZDVQRWDVKLJKDVH[SHFWHGGXHWRHPLJUDWLRQWR
:HVWHUQFRXQWULHV(VWRQLD·VSUREOHPVZHUHFDXVHGLQSDUWE\WKHVKRFNVDVVRFLDWHGZLWKWKHEUHDNLQWKHWUDGH
DQGILQDQFLDOOLQNVWKDWKDGH[LVWHGZLWKLQWKH6RYLHW8QLRQDQGWKHODJLQHVWDEOLVKLQJDIXQFWLRQLQJPDUNHW
HFRQRP\$OWKRXJK(VWRQLDQVGHVSHUDWHO\ZDQWHGWRKDYHDIUHHPDUNHWHFRQRP\WKH\ODFNHGWKHVNLOOVH[SHUL
HQFHDQGLQVWLWXWLRQVQHFHVVDU\IRUVXFKDQHFRQRP\WRIXQFWLRQ

7KH,0)VXSSRUWHG3URJUDP
,WKDVEHHQDFKDOOHQJHIRUWKH,0)WRKHOS(VWRQLDDQGRWKHUIRUPHUFRPPXQLVWFRXQWULHVUHRULHQWWKHLUHFRQR
PLHVWRZDUGPDUNHWV\VWHPVDQGEHFRPHLQWHJUDWHGLQWRWKHJOREDOHFRQRP\7KH,0)SURYLGHVDGYLFHDQGDVVLV
WDQFHWRKHOSOLEHUDOL]HDQGSULYDWL]HWKHHFRQRPLHVWRHQGSULFHFRQWUROVDQGUHSODFHJRYHUQPHQWRZQHUVKLSZLWK
SULYDWHRZQHUVKLS7KH,0)DOVRSURYLGHVDGYLFHDQGDVVLVWDQFHWRKHOSVWDELOL]HWKHHFRQRPLHVE\FRQWUROOLQJ
LQIODWLRQDQGXQHPSOR\PHQWDQGSURPRWLQJHFRQRPLFJURZWK7KH,0)DVVLVWVLQUHVWUXFWXULQJWKHHFRQRPLHVE\
JXLGLQJWKHSURFHVVRIHVWDEOLVKLQJLQVWLWXWLRQVVXFKDVEDQNVWKDWDUHQHFHVVDU\LIWKHQHZPDUNHWVDUHWRIXQF
WLRQ

7KHILUVW,0)VXSSRUWHGSURJUDPIRU(VWRQLDZDVDSSURYHGLQDQGZDVDLPHGDWPDFURHFRQRPLFVWDELOL]D
WLRQDQGWKHHVWDEOLVKPHQWRILQVWLWXWLRQVWRHDVHWKHWUDQVLWLRQWRDPDUNHWHFRQRPLFV\VWHP7KH,0)SURYLGHG
ORDQVSROLF\DGYLFHDQGWHFKQLFDODVVLVWDQFH(VWRQLDHVWDEOLVKHGDFXUUHQF\ERDUGWRFRQWUROWKHPRQH\VXS
SO\DQGVWDELOL]HLWVQHZFXUUHQF\WKURXJKDIL[HGOLQNZLWKWKH'HXWVFKHPDUNWKH*HUPDQFXUUHQF\DWWKDW
WLPH(VWRQLDDOVRDYRLGHGKDYLQJDJRYHUQPHQWEXGJHWGHILFLWIRUDQXPEHURI\HDUVDQGLQWURGXFHGDSROLF\WR
UHVWUDLQZDJHLQFUHDVHV7KLVSROLF\NHSWGRZQEXVLQHVVFRVWVDQGSULFHVRIJRRGVIRUH[SRUWZKLFKHQFRXUDJHG
RWKHUFRXQWULHVWRLPSRUWJRRGVIURP(VWRQLD

7KHVHFRQGSKDVHRIWKH,0)VXSSRUWHGSURJUDPVIRU(VWRQLDWRRNSODFHIURPWKURXJKDQGZDV
GLUHFWHGWRZDUGLQFUHDVLQJHFRQRPLFJURZWK$IWHU,0)DVVLVWDQFHFRQVLVWHGRQO\RIDGYLFHDQGWHFKQLFDO
DVVLVWDQFH(VWRQLDGLGQRWQHHGWRGUDZRQWKHORDQIXQGVDYDLODEOH)URPWKURXJKWKHJRDOVZHUHWR
FRQWLQXHWRKHOSWKH(VWRQLDQHFRQRP\GHYHORSDQGTXDOLI\IRUDGPLVVLRQLQWRWKH(XURSHDQ8QLRQ

7KH2XWFRPHV
(VWRQLDLVYLHZHGDVKDYLQJVXFFHVVIXOO\PDGHWKHWUDQVLWLRQIURPDSODQQHGWRDPDUNHWHFRQRP\ZKLOHEULQJLQJ
LQIODWLRQXQGHUFRQWURODQGSURPRWLQJHFRQRPLFJURZWK(VWRQLD·VUDWHRILQIODWLRQIHOOWRSHUFHQWLQDQG
DVRIZDVOHVVWKDQSHUFHQW7KHVXFFHVVLQFXUWDLOLQJLQIODWLRQLVDWWULEXWHGWRWKHVXFFHVVIXORSHUDWLRQVRI
WKHFXUUHQF\ERDUG&RPSDUHGWRRWKHUWUDQVLWLRQHFRQRPLHVUHDO*'3UHFRYHUHGIURPLWVLQLWLDOGHFOLQHVTXLFNO\
DQGDVRIZDVLQFUHDVLQJDWUDWHVDYHUDJLQJSHUFHQWDQQXDOO\'HVSLWHLWVVXFFHVVHVLQWKH,0)ZDV
FRQFHUQHGDERXW(VWRQLD·VODUJHFXUUHQWDFFRXQWGHILFLW7KLVPHDQVWKDW(VWRQLDZDVVSHQGLQJPRUHRQLPSRUWV
WKDQLWHDUQHGE\H[SRUWLQJJRRGV

‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1< 
/(6621:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"

$&7,9,7<&
&$6(678'<6287+.25($$1'
7+(,17(51$7,21$/021(7$5<)81' ,0)
7KH&RXQWU\
7KH5HSXEOLFRI.RUHDVRPHWLPHVFDOOHG6RXWK.RUHDLVDQ(DVW$VLDQFRXQWU\RQWKHVRXWKHUQKDOIRIWKH
.RUHDQSHQLQVXOD,WEHFDPHDFRXQWU\DIWHU:RUOG:DU,,ZKHQLWZDVVHSDUDWHGIURPFRPPXQLVWFRQWUROOHG
1RUWK.RUHD6RXWK.RUHD DORQJZLWK7DLZDQ6LQJDSRUHDQG+RQJ.RQJ LVRQHRIWKHIRXU´$VLDQ7LJHUVµFRXQ
WULHVWKDWH[SHULHQFHGYHU\UDSLGHFRQRPLFJURZWKIURPWKHVWKURXJK6RXWK.RUHD·V*'3SHUFDSLWDLV
WLPHVKLJKHUWKDQ1RUWK.RUHD·VDQGLVHTXDOWRWKDWRIVRPH(XURSHDQ8QLRQFRXQWULHV

7KH3UREOHP
$Q$VLDQILQDQFLDOFULVLVWRRNSODFHLQ,WEHJDQLQ7KDLODQGDQGUDSLGO\VSUHDGWRRWKHUFRXQWULHV
LQFOXGLQJ.RUHD7KLVFULVLVH[SRVHGPDQ\XQGHUO\LQJZHDNQHVVHVLQWKH.RUHDQHFRQRP\ZKLFKZDVGRPLQDWHG
E\ODUJHJRYHUQPHQWJXLGHGFRQJORPHUDWHVFDOOHGFKDHEROV,QSDUWEHFDXVHWKHUHZDVOLWWOHSXEOLFLQIRUPDWLRQRQ
WKHVHFRQJORPHUDWHV·PDQDJHPHQWDQGWKHLUUHDOILQDQFLDOVLWXDWLRQLQYHVWRUVORVWFRQILGHQFHLQ.RUHDDQGZLWK
GUHZPRQH\IURP.RUHDQVWRFNVDQGRWKHUDVVHWV7KHVWRFNPDUNHWSOXQJHGDQGWKHFRXQWU\IHOOLQWRDVHYHUH
UHFHVVLRQ7KHFXUUHQF\WKHZRQGHSUHFLDWHGDQGWKHUHZDVDVLJQLILFDQWULVNRILQIODWLRQ0DQ\RIWKHFKDHEROV
ZHQWEDQNUXSW.RUHDVRXJKWKHOSIURPWKH,0)LQ1RYHPEHULQWKHIRUPRIDWKUHH\HDUVWDQGE\DUUDQJH
PHQWDORDQWKDWWKHFRXQWU\FRXOGERUURZIURPDVQHHGHG

7KH,0)VXSSRUWHG3URJUDP
2Q'HFHPEHUWKH,0)DSSURYHG.RUHD·VUHTXHVWIRUDORDQWRVXSSRUWHFRQRPLFUHIRUPV7KH,0)SUR
YLGHGDVVLVWDQFHXQGHUWKH(PHUJHQF\)LQDQFLQJ0HFKDQLVPZKLFKDOORZHG.RUHDWRUHFHLYHWKHPRQH\YHU\
TXLFNO\EHFDXVHRIWKHFULVLV7KHUHIRUPVZHUHGHVLJQHGWRKHOS.RUHDUHFRYHUIURPWKH$VLDQILQDQFLDOFULVLV
DQGWRFRUUHFWVRPHRIWKHXQGHUO\LQJSUREOHPVLQLWVHFRQRP\2YHUDOOREMHFWLYHVRIWKH,0)VXSSRUWHGSURJUDP
LQFOXGHGUHVWRULQJWKHFRQILGHQFHRILQYHVWRUVLQWKHHFRQRP\UHVWRULQJ*'3JURZWKFRQWDLQLQJLQIODWLRQDQG
EXLOGLQJXSUHVHUYHVRILQWHUQDWLRQDOFXUUHQFLHV5HVSRQGLQJWRDGYLFHIURPWKH,0)WKHJRYHUQPHQWSOHGJHGWR
FRQGXFWPRQHWDU\SROLF\WRDLPIRUDQLQIODWLRQUDWHRISHUFHQWDQGWRVWDELOL]HWKHYDOXHRIWKHZRQWRNHHS
JRYHUQPHQWVSHQGLQJXQGHUFRQWURODQGWRHQFRXUDJHIUHHUWUDGHE\HOLPLQDWLQJVXEVLGLHVWRGRPHVWLFEXVLQHVVHV
WKDWSURWHFWHGWKHPIURPIRUHLJQFRPSHWLWLRQ

7RUHIRUPWKHILQDQFLDODQGEXVLQHVVVHFWRUVRIWKHHFRQRP\EDQNVRWKHUILQDQFLDOLQVWLWXWLRQVDQGEXVLQHVVHV
WKDWZHUHIDLOLQJZHUHFORVHGUDWKHUWKDQVXSSRUWHGE\WKHJRYHUQPHQW)LQDQFLDOVXSHUYLVLRQDQGDFFRXQWLQJ
SUDFWLFHVZHUHUDLVHGWRLQWHUQDWLRQDOVWDQGDUGV)LQDQFLDOVWDWHPHQWVZHUHRSHQWRDXGLWVE\LQWHUQDWLRQDOO\UHF
RJQL]HGILUPV)RUHLJQLQYHVWPHQWZDVDOORZHGLQEXVLQHVVHVZKHUHLWKDGEHHQSURKLELWHG

7KH2XWFRPHV
.RUHDLPSOHPHQWHGVWURQJUHIRUPVDQGPDFURHFRQRPLFSROLFLHVUHFRPPHQGHGE\WKH,0)$VDUHVXOWLWVHFR
QRPLFJURZWKSLFNHGXSTXLFNO\DQGLQIODWLRQZDVNHSWLQFKHFN.RUHDGLGQRWERUURZDOOWKHIXQGVDYDLODEOH
XQGHUWKHORDQDJUHHPHQWDQGDFWXDOO\UHSDLGVXEVWDQWLDODPRXQWVHDUOLHUWKDQVFKHGXOHG

7KH$VLDQILQDQFLDOFULVLVSUHVHQWHGDQHZVLWXDWLRQIRUWKH,0)0DQ\SHRSOHLQFOXGLQJWKRVHLQVLGHWKH,0)
EHOLHYHWKDWLQWKHIXWXUHPRUHVKRXOGEHGRQHWRGHDOZLWKXQGHUO\LQJHFRQRPLFZHDNQHVVHVZLWKWKHJRDORISUH
YHQWLQJFULVHV:KHWKHUWKLVLVDOZD\VSRVVLEOHLVDGLIILFXOWTXHVWLRQ

 ‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1<
:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"/(6621

$&7,9,7<'
&$6(678'<785.(<$1'
7+(,17(51$7,21$/021(7$5<)81' ,0)
7KH&RXQWU\
7XUNH\LVORFDWHGLQERWK(XURSHDQG$VLDDWWKHQRUWKHDVWHQGRIWKH0HGLWHUUDQHDQ6HD0RGHUQ7XUNH\ZDV
IRXQGHGLQIURPSDUWVRIWKHIRUPHU2WWRPDQ(PSLUH7KHUHZHUHVHYHUDOPLOLWDU\FRXSVLQ7XUNH\GXULQJ
WKHWZHQWLHWKFHQWXU\EXWFLYLOLDQJRYHUQPHQWVZHUHDOZD\VDEOHWRUHJDLQSROLWLFDOSRZHU7XUNH\·VHFRQRP\LV
DPL[RIPRGHUQLQGXVWU\DQGWUDGLWLRQDODJULFXOWXUHWKDWDFFRXQWVIRUSHUFHQWRI7XUNLVKHPSOR\PHQW$VRI
7XUNH\ZDVVWULYLQJWRXQGHUWDNHWKHOHJDODQGHFRQRPLFUHIRUPVQHFHVVDU\WRTXDOLI\IRUPHPEHUVKLSLQ
WKH(XURSHDQ8QLRQ

7KH3UREOHP
+LJKDQGYRODWLOHLQIODWLRQKDVEHHQ7XUNH\·VPDLQHFRQRPLFSUREOHP6LQFHDERXWLWKDVDYHUDJHGEHWZHHQ
DQGSHUFHQWSHU\HDUZLWKSHDNVRIRYHUSHUFHQW $QDQQXDOLQIODWLRQUDWHRISHUFHQWPHDQV
WKDWWKHDYHUDJHOHYHORISULFHVGRXEOHVHYHU\\HDU 7KLVKLJKUDWHRILQIODWLRQUHVXOWHGIURPORRVHILVFDOSROLF\
LQFOXGLQJRYHUO\JHQHURXVVRFLDOVHFXULW\EHQHILWVDQGODUJHDJULFXOWXUDOVXEVLGLHV7KHVHSD\PHQWVOHGWRYHU\
ODUJHJRYHUQPHQWEXGJHWGHILFLWV:KHQDJRYHUQPHQWVSHQGVPRUHWKDQLWWDNHVLQIURPWD[UHYHQXHVLWKDV
EXGJHWGHILFLWVZKLFKQHHGWREHILQDQFHG,Q7XUNH\WKLVKDVEHHQGRQHWKURXJKORDQVIURPIRUHLJQHUVDQGE\
WKHFHQWUDOEDQNSULQWLQJPRQH\ZKLFKFDXVHVLQIODWLRQ,QWKHVLWEHFDPHHYLGHQWWRHFRQRPLVWVSULYDWH
EXVLQHVVHVDQGWKH,0)WKDWDUHGXFWLRQLQLQIODWLRQZRXOGJUHDWO\EHQHILWWKH7XUNLVKHFRQRP\/RZHULQIODWLRQ
ZRXOGOHDGWRLQFUHDVHGFRQILGHQFHLQWKHHFRQRP\PRUHIRUHLJQLQYHVWPHQWDQGKLJKHUDQGPRUHVWDEOHHFRQRPLF
JURZWK

7KH,0)VXSSRUWHG3URJUDP
6LQFH7XUNH\KDVKDGDVHULHVRI,0)VXSSRUWHGSURJUDPVGHVLJQHGWRFRQWUROLQIODWLRQDQGVWUHQJWKHQWKH
HFRQRP\$QDPELWLRXVVHWRIUHIRUPVZLWK,0)ORDQVDQGDVVLVWDQFHKDGJRRGLQLWLDOUHVXOWV%XWE\WKH
SUREOHPVRILQFUHDVLQJLQIODWLRQDQGDQLQFUHDVLQJJRYHUQPHQWGHILFLWDURVHDJDLQ7KLVIDLOXUHZDVGXHLQSDUW
WRWKH7XUNLVKJRYHUQPHQW·VLQDELOLW\WRFRQWUROVSHQGLQJDVSUHVFULEHGLQWKH,0)SODQ%HWZHHQDQG
7XUNH\DQGWKH,0)WULHGDQXPEHURIWLPHVWRDJUHHRQDSURJUDPWRFRQWUROLQIODWLRQ7KHVHSURJUDPVZHUHQRW
VXFFHVVIXOLQLWLDOO\EHFDXVHWKH\ZHUHQRWLPSOHPHQWHGIXOO\EXWVLQFHUHVXOWVKDYHEHHQPRUHSRVLWLYH

7KHVHPRUHVXFFHVVIXOUHIRUPVKDYHLQFOXGHGDWWHPSWVWRUHGXFHJRYHUQPHQWVSHQGLQJE\UHGXFLQJWKHVL]HRI
WKHJRYHUQPHQWZRUNIRUFHSULYDWL]LQJEXVLQHVVHVIRUPHUO\RZQHGE\WKHJRYHUQPHQWUHVWUDLQLQJJRYHUQPHQW
ZRUNHUV·SD\LQFUHDVHVDQGUHIRUPLQJWKHVRFLDOVHFXULW\V\VWHP(IIRUWVKDYHDOVREHHQXQGHUZD\WRUHIRUPWKH
WD[V\VWHPWRFORVHWD[ORRSKROHVDQGLPSURYHWKHHIILFLHQF\RIWD[FROOHFWLRQV,QWKHVHZD\VWKHJRYHUQPHQWKDV
ORZHUHGLWVGHILFLWE\GHFUHDVLQJVSHQGLQJDQGLQFUHDVLQJWD[UHYHQXHV,QDGGLWLRQWKHFHQWUDOEDQNKDVEHHQ
JUDQWHGLQGHSHQGHQFHDQGJLYHQSULFHVWDELOLW\DVLWVSULPDU\REMHFWLYHDQGKDVEHHQIUHHGIURPWKHREOLJDWLRQRI
SULQWLQJPRQH\WRILQDQFHWKHEXGJHWGHILFLW)LQDOO\WKH,0)JUDQWHGVXEVWDQWLDOILQDQFLDODVVLVWDQFHWRVXSSRUW
7XUNH\·VEDODQFHRISD\PHQWV

7KH,0)VXSSRUWHGSURJUDPVWRLPSURYHILVFDOSROLF\DQGORZHULQIODWLRQLQ7XUNH\KDYHEHHQFULWLFL]HGEHFDXVH
WKH\KDYHWDNHQDORQJWLPHWRWDNHHIIHFW2XWVLGHHYHQWVVXFKDVSROLWLFDOWXUPRLOLQKDYHKLQGHUHGWKH
HIIRUWVDQGDWWLPHVWKHJRYHUQPHQWKDVQRWEHHQIXOO\VXSSRUWLYHRIWKHSURSRVHGUHIRUPV+RZHYHUVLQFH
WKHUHIRUPVKDYHEHHQPRUHIXOO\LPSOHPHQWHGDQGDSSHDUWREHZRUNLQJ

7KH2XWFRPHV
7XUNH\·V*'3JURZWKDYHUDJHGDKHDOWK\SHUFHQWLQDQGLQIODWLRQGHFUHDVHGIURPSHUFHQWLQ
WROHVVWKDQSHUFHQWLQ7KLVVXFFHVVLVDWWULEXWHGWR7XUNH\·VIROORZLQJWKHVWURQJPDFURHFRQRPLFVWDELOL
]DWLRQSROLFLHVVXSSRUWHGE\WKH,0)&RQFHUQVRYHUILVFDOSROLF\UHPDLQKRZHYHUEHFDXVH7XUNH\·VJRYHUQPHQW
GHEWLVVWLOOKLJK

‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1< 
/(6621:+$7,67+(,17(51$7,21$/021(7$5<)81'$1':+$7'2(6,7'2"

$&7,9,7<(
&$6(678'<8*$1'$$1'
7+(,17(51$7,21$/021(7$5<)81' ,0)

7KH&RXQWU\
8JDQGDLVDODQGORFNHGFRXQWU\LQ(DVW$IULFDZLWKDWURXEOHGKLVWRU\,WZDVD%ULWLVKFRORQ\XQWLO)URP
WRLWVOHDGHUVZHUHNQRZQIRUKXPDQULJKWVDEXVHVFDXVLQJWKHGHDWKRIRYHUDKDOIPLOOLRQRILWV
SHRSOH+RZHYHUVLQFHFRPLQJWRSRZHULQ3UHVLGHQW<RZHUL0XVHYHQLKDVLQWURGXFHGUHIRUPVLPSURYHG
WKHFRXQWU\·VKXPDQULJKWVUHFRUGDQGLQWURGXFHG,0)VXSSRUWHGSURJUDPVWKDWJUHDWO\LPSURYHGWKHHFRQRP\
'HVSLWHWKLVSURJUHVV8JDQGDIDFHVPDQ\FKDOOHQJHV

7KH3UREOHP
,QDQG8JDQGDVRXJKWWKHKHOSRIWKH,0)WRUHGXFHWKHODUJHGHEWVWKDWLWRZHGWRIRUHLJQFRXQWULHV
DQGEDQNV:KHQDFRXQWU\KDVDIRUHLJQGHEWLWKDVWRSD\LQWHUHVWRQWKHGHEWDVZHOODVSDUWRIWKHSULQFLSDO
HYHU\\HDU7KLVPHDQWWKDW8JDQGDFRXOGQRWXVHWKLVPRQH\WRSD\IRUFOHDQZDWHUPHGLFLQHHGXFDWLRQDQG
URDGPDLQWHQDQFH8JDQGD·VODUJHGHEWDOVRPHDQWWKDWIRUHLJQSULYDWHLQYHVWRUVZHUHXQOLNHO\WRZDQWWRLQYHVW
LQWKHFRXQWU\EHFDXVHRIWKHULVNWKDWWKH\ZRXOGQRWJHWWKHLUPRQH\EDFN,WZDVLPSRUWDQWIRU8JDQGDWR
UHGXFHWKHDPRXQWRILWVIRUHLJQGHEWVRLWFRXOGXVHWKHPRQH\WRILJKWSRYHUW\8JDQGDZDVRQHRIWKHSRRUHVW
FRXQWULHVLQWKHZRUOGZLWKDQHVWLPDWHGSHUFHQWRILWVSRSXODWLRQOLYLQJLQSRYHUW\7KHSUREOHPRISRYHUW\LQ
8JDQGDLVUHODWHGWRSUREOHPVLQHGXFDWLRQDQGKHDOWK0DQ\FKLOGUHQGURSRXWRIVFKRROGXHWRDODFNRIPRQH\
7KHUHDUHZLGHVSUHDGKHDOWKSUREOHPVGXHWROLPLWHGDFFHVVWRFOHDQZDWHUGRFWRUVPHGLFLQHDQGWUDQVSRUWDWLRQ

7KH,0)VXSSRUWHG3URJUDP
,Q8JDQGDZDVRQHRIWKHILUVWFRXQWULHVWRTXDOLI\IRU,0)DVVLVWDQFHXQGHUWKH+HDYLO\,QGHEWHG3RRU
&RXQWU\ +,3& SURJUDP8QGHUWKLVSURJUDPIRUHLJQFRXQWULHVDQGEDQNVDJUHHWRFXWWKHDPRXQWDFRXQWU\
RZHVWKHPE\DODUJHDPRXQWSURYLGHGWKHFRXQWU\HIIHFWLYHO\LPSOHPHQWVDQDQWLSRYHUW\SURJUDP8JDQGDTXDO
LILHGIRUWKH,0)+,3&SURJUDPEHFDXVHLWGHPRQVWUDWHGWKDWLWIROORZHGJRRGHFRQRPLFSROLFLHVGXULQJWKHWKUHH
\HDUSHULRGSULRUWR2QHRIWKHPDLQJRDOVRIWKLVSURJUDPLVWRJLYHFRXQWULHVGHEWUHOLHI PHDQLQJWKH\GR
QRWQHHGWRSD\EDFNVRPHSULRUORDQV VRWKH\KDYHPRUHPRQH\WRVSHQGRQUHGXFLQJSRYHUW\DQGSURPRWLQJ
HFRQRPLFJURZWK

$VDUHVXOWRIWKH+,3&SURJUDP8JDQGDFRPPLWWHGWRVXSSRUWHFRQRPLFJURZWKDQGWRPDNHVXUHWKDWSRRUSHR
SOHGLUHFWO\EHQHILWHGIURPWKHLPSURYHGHFRQRP\(FRQRPLFJURZWKFDQKHOSUHGXFHSRYHUW\EHFDXVHLWUHVXOWVLQ
PRUHMREVKLJKHULQFRPHVDQGPRUHJRRGVDQGVHUYLFHVIRUWKHSRSXODWLRQ8JDQGD·VSRYHUW\UHGXFWLRQSURJUDPV
LQFOXGHGSULYDWL]LQJEXVLQHVVHVWKDWKDGEHHQUXQE\WKHJRYHUQPHQWLPSURYLQJFRPPXQLFDWLRQDQGWUDQVSRUWD
WLRQQHWZRUNVKHOSLQJH[SRUWLQGXVWULHV FRIIHHLV8JDQGD·VFKLHIH[SRUW DQGSURYLGLQJXQLYHUVDODFFHVVWRKHDOWK
FDUHDQGHGXFDWLRQ7KH8JDQGDQJRYHUQPHQWDOVRFUHDWHGD3RYHUW\$FWLRQ)XQGDVSDUWRILWVEXGJHWWRPRQL
WRUDQWLSRYHUW\SURJUDPVFDUULHGRXWXQGHUWKH+,3&SURJUDP7KLVPDNHVLWHDV\WRHQVXUHWKDW8JDQGDXVHG
WKHPRQH\LWVDYHGIURPWKHGHEWUHGXFWLRQRQKHDOWKHGXFDWLRQDQGRWKHUSRYHUW\UHGXFWLRQSURJUDPV%HFDXVH
8JDQGDPHWDOOWKHFRPPLWPHQWVXQGHUWKH+,3&SURJUDPLQLWZDVRQHRIWKHILUVWFRXQWULHVWRUHFHLYHD
VXEVWDQWLDOUHGXFWLRQLQLWVIRUHLJQGHEWXQGHUDQHQKDQFHG+,3&GHEWUHOLHISURJUDP

7KH2XWFRPHV
7KHRXWFRPHVRI8JDQGD·VHIIRUWVWRUHGXFHSRYHUW\ZLWKLQWKH,0)VXSSRUWHGSURJUDPDQGZLWKWKHVXSSRUW
RIIRUHLJQFRXQWULHVDQGEDQNVDUHHQFRXUDJLQJDQG8JDQGDLVYLHZHGDVDVXFFHVVIXOPRGHOIRUWKH,0)+,3&
SURJUDP$VRI8JDQGDZDVH[SHULHQFLQJVWURQJHFRQRPLFJURZWKORZLQIODWLRQDQGLQFUHDVHVLQH[SRUWV
6WDWLVWLFVVKRZWKDWSRYHUW\KDGEHHQUHGXFHGRYHUWKHSDVW\HDUVRUVR)XUWKHUPRUHVXSSRUWIURPWKH,0)
LQFOXGLQJWKH+,3&KHOSHG8JDQGDWRJDLQFUHGLELOLW\DPRQJRWKHULQWHUQDWLRQDOGRQRUVWKDWDUHQRZSURYLGLQJ
YHU\VLJQLILFDQWDLGWR8JDQGD'HVSLWHWKHVHJDLQV8JDQGDLVVWLOODSRRUFRXQWU\IDFLQJSUREOHPVZLWK+,9
$,'6UHEHOIRUFHVDQGJRYHUQPHQWFRUUXSWLRQ0XFKKDVEHHQDFFRPSOLVKHGDQGPXFKUHPDLQVWREHGRQH

 ‹1$7,21$/&281&,/21(&2120,&('8&$7,211(:<25.1<