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Issue 9

December 2002–
January 2003 MATTERS
In This Issue 2 Feature: José Ignacio Avalos Hernández – Full-time Philanthropist
This issue features a profile of with a Businessman’s Mind-Set
Mexican businessman and
philanthropist José Ignacio 5 Global Giving Round-Up
Avalos Hernández, whose philan- • Iranian philanthropic initiative strengthens science education
thropic efforts are noteworthy for • Jordan’s Queen Rania makes her mark on national philanthropy
their scale and also because of • Indian NGO network encourages philanthropists to get involved
their many partnerships with the • Nominations sought for 2003 Right Livelihood Award
business community – from small • South African foundation partners with US youth project to improve
shop owners to leading Mexican rural schools
companies. • Sabera Foundation enables Spanish and other donors to help women in India
• Soros’ Russian programs to merge with Eurasia Foundation
James M. Brasher III, Director, • Bulgaria holds first national charity day
Global Philanthropists Circle
• New social investment portfolio help small businesses in Egypt and Pakistan
• Give2Asia celebrates first anniversary
• Philanthropy center to study link between faith and giving
• British publication seeks nominations for 2003 Charity Awards
• Charity meeting highlights importance of effective “borderless giving”
• World Bank chief urges greater corporate social responsibility
Global Giving Matters presents best • Despite endowment plunge, Silicon Valley foundation will maintain
practices and innovations in philanthropy
spending levels
and social investment around the world. • Philanthropy Ink: “The New Face of Philanthropy”
It is an initiative of The Synergos
Institute’s Global Philanthropists Circle
9 Resources & Links
and the World Economic Forum, under • Worth magazine focuses on philanthropy
the direction of Adele Simmons, • David Rockefeller highlights family philanthropy in just-published memoirs
Senior Advisor to the Forum, and
James M. Brasher III, Director, Global
10 Global Philanthropist Circle News
Philanthropists Circle. Myra Alperson is
• GPC Country Visit to Ecuador and the Galápagos Islands February 23 to
Consulting Editor. Rockefeller
March 6, 2003
Philanthropy Advisors provides support
for its distribution.
10 Your Ideas Wanted
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© 2002 Synergos/World Economic Forum
Global Giving MATTERS

FEATURE: JOSÉ IGNACIO AVALOS HERNÁNDEZ –


FULL-TIME PHILANTHROPIST WITH A
BUSINESSMAN’S MIND-SET
An average day for José Ignacio Avalos Hernández begins at 8AM and ends at 11PM.
This is because, explains Avalos, he has two careers. One is as a businessman. Based in
Mexico City, he runs a pharmaceutical and cosmetics company founded by his father.
The other is as a philanthropist. Mr. Avalos, who is 42, has been instrumental in cre-
ating major nonprofit organizations that address critical needs of the poor in Mexico
Working on the issues of nutrition, economic empowerment, health care and rural
development, the initiatives Avalos has supported are noteworthy because they are
based on business models that aim to be accountable to donors and investors as well as
beneficiaries. Large for-profit companies have aligned themselves with these efforts,
providing resources while earning a social and reputational return.

How It Began
Mr. Avalos attributes his drive towards philanthropy to early involvement in charity
work. “From the age of eight I visited orphanages and homes for the elderly,” he says.
A devout Catholic, his efforts are also influenced by the charitable values of his faith.
Mr. Avalos’ first philanthropic project, established in 1982, was Gente Nueva (“New
People” – www.gentenueva.org ), which aims to create links between civil society, gov-
ernment and the private sector, with a principal goal of drawing young people into
social action and increasing their awareness of Mexico’s marginalized communities.
Educational campaigns, volunteer projects (including “Social Action Saturdays”) and
fund-raisers are part of the program. Working with schools, social groups and other
institutions, Gente Nueva has evolved into an international youth organization as
members have moved to other countries; today it also has projects in Argentina, Brazil,
Chile, Colombia, Italy, Spain and Venezuela. To date, Gente Nueva has spawned 23
other nonprofit organizations.
Mr. Avalos’ next big project aims to address the problem of child malnutrition, which
affects over 40% of Mexican children under the age of five. Un Kilo de Ayuda (“A Kilo
of Help” – www.unkilodeayuda.org.mx) sells food and other essential household prod-
ucts at competitive prices and uses the profits to fund its social and nutritional pro-
grams. An outgrowth of Gente Nueva, Un Kilo de Ayuda’s programs teach families
(particularly mothers of young children, from newborns to age five) better practices in
nutrition, hygiene and health. They also provide nutritional support through food
packets and vitamin and mineral supplements. Community members participate in
these programs by serving as volunteers, helping provide training and distribute food.
Un Kilo de Ayuda is working with the Salvador Zubirán National Nutrition Institute to
formally monitor family progress using software to track each child served by the pro-
gram. In 2001, Un Kilo de Ayuda benefited more than 11,000 children in five states; a

December 2002–January 2003 2


Global Giving MATTERS

goal for 2002 was to reach more than twice that number, and to expand to more states.
(The numbers are not yet in.)
The sales aspect of Un Kilo de Ayuda is perhaps its most original feature for a non-
profit organization. The Kilo de Ayuda brand boasts 27 products, including pastas,
cookies, canned goods, cooking oil, soap, and paper goods such as diapers and napkins.
The strategy is straight business. By promoting the brand, and drawing on the promo-
tion and distribution of the companies that support it, the Kilo de Ayuda name is now
known throughout Mexico – and consumers know that they are helping children and
families in need through their purchases. The products themselves are manufactured
by leading Mexican companies and are sold at major supermarkets and drugstores.
“They’re no different than the other products the companies make,” says Mr. Avalos,
“so there’s no lost business.” In fact, he says, Un Kilo de Ayuda products might sit side-
by-side with name-brand products by the same maker, literally adding shelf space for
the company.
Avalos notes that Un Kilo de Ayuda is similar in some ways to Newman’s Own, a US
company founded by actor Paul Newman and a partner that initially gave all its profits
to a summer camp for chronically-ill children (the company now supports a variety of
nonprofit initiatives). The difference, however, is that Un Kilo de Ayuda products
target average Mexicans – getting quality food products and paper goods to them for
fair prices – while Newman’s Own produces upmarket gourmet products directed at
affluent consumers.

Supporting Economic Empowerment


In the area of microfinance and economic empowerment, Mr. Avalos was instrumental
in creating Compartamos (www.compartamos.com), a micro-finance lender that helps
Mexico’s smallest business owners, who represent a substantial economic sector that
large banks typically ignore. These entrepreneurs, from small farmers to food vendors
to artisans, are estimated to generate one-third of Mexico’s gross domestic product.
Drawing on successful micro-finance models from Bangladesh and Bolivia,
Compartamos makes loans that enable borrowers to buy more raw materials, tools or
other items to expand their businesses. Loans are only made to those who agree to join
so-called “solidarity groups,” which use peer pressure to ensure that loans are repaid
fully and on time.
As in successful microfinance programs in other countries, the vast majority who take
loans from Compartamos are women. The repayment rate is a remarkable 99 percent.
Established in 1991, Compartamos had assisted more than 17,000 borrowers by 1995,
and 137,000 by 2002. The current loan portfolio is valued at $60 million, while total
loans made approach $200 million.
One way Compartamos ensures efficiency is to discourage laxity of any kind.
Latecomers to lending meetings are fined a modest sum for missing even a few min-
utes, and staff receive bonuses for bringing in more borrowers and maintaining a
timely record of loan repayment.

December 2002–January 2003 3


Global Giving MATTERS

Compartamos is expanding and may include larger loans to mid-sized businesses and
the creation of a more structured institution. While average loans are currently about
$285, Compartamos has made some loans of $1,000 and is considering raising the limit
to $5,000. These changes would substantially alter the way the program works, but not
its underlying goal of providing financial resources to entrepreneurs who lack access to
mainstream banks.
The newest program is Mi Tienda (“My Shop”) which aims to help owners of rural
general stores to maintain up-to-date, low-priced inventories of products their cus-
tomers need. Keeping prices low is often impossible for these small owners since,
unlike supermarkets, they cannot afford to purchase in bulk. Keeping inventory current
can be difficult because the owners cannot do the buying as often as they might like.
Mi Tienda’s solution is to organize a network of regional buyers who visit the small
owners to take orders and then buy on their behalf. Fresh products are delivered the
next day. This cooperative approach enables the participating merchants to offer a
more varied and fresher inventory at lower prices. It also enables suppliers to get more
of their goods into these markets with faster turnover.
Mi Tienda’s investors are several nonprofit organizations, which own 52 percent of the
operation, and for-profit corporations, which own the remainder. The for-profits are
businesses known for social responsibility, including the supermarket chain Gigante.
Several months ago Mi Tienda completed a three-year pilot project with 480 affiliates
(small shop owners); the program is now expanding. In two years, says Mr. Avalos, Mi
Tienda should be operating in five more regions with 2,500 new affiliates, so that
nearly 3,000 shops will be involved.

Combining Work and Family


It would seem difficult for someone like Mr. Avalos to combine work and family, con-
sidering his long hours. But he met his future wife, Verónica Miranda Gutiérrez, while
working at Gente Nueva (where she still volunteers) and they involve their four chil-
dren (aged five to 12) in projects to develop an early sensibility for philanthropy.

Promoting Partnerships and Strengthening the Nonprofit Sector


Perhaps in the same way that Mr. Avalos combines business goals and philanthropy,
and integrates his family into his work, he also envisions a need to create successful
linkages between government, non-governmental organizations (NGOs) and philan-
thropic organizations. To date, he says, there have been some efforts to create working
collaborations, but they have not been very successful as yet. “I think there is still a lot
to do,” he says. “We’re covering the country, but we have a very thin veil and we’re not
having a profound effect as yet.”
Mr. Avalos has also launched an entity called Cooperación y Desarrollo (“Cooperation
and Development” – www.cooperacionydesarrollo.org.mx), which helps strengthen and
professionalize NGOs by providing training in capacity building, governance and
fund-raising. About 800 organizations are currently involved. As with his other efforts,
this “reengineering” effort aims to help NGOs produce better results as well as eco-
nomic returns.
December 2002–January 2003 4
Global Giving MATTERS

GLOBAL GIVING ROUNDUP


Overviews of best Iranian philanthropic initiative strengthens science education
practices around Since observing the appalling state of technology in Iran’s schools on a visit home,
the world and London-based Iranian Abbas Edalat has made it a point to focus his energies on
improving educational programs and access to state-of-the-art technology. Launching
links to learn more
the Science and Art Foundation (www.science-arts.org ) in 1999, Edalat has worked
about them with other Iranian philanthropists in and outside of Iran, and with other funders, to
Links to Web sites with improve technology education nationwide. Among the projects is an ICT Center in
more details are available Zahedan, the capital city of the Sistan and Baluchestan Province, which now boasts
at the online edition of over 15 local, national and international partners and provides training to community
Global Giving Matters at
www.globalgivingmatters.org members, administers an “e-shop” to sell handicrafts made by local women to an inter-
national market, and a micro-enterprise program targeting youth, which will be carried
out in partnership with the Ministry of Industry. A strong evaluation component will
allow replication on a national level. (Silicon Iran, 2001)

Jordan’s Queen Rania makes her mark on national philanthropy


Her Majesty Queen Rania of Jordan has become actively involved in a number of
national philanthropic initiatives, with an emphasis on women’s economic empower-
ment, children’s issues, education, and human rights. This past November she took
over leadership of the Arab Women’s Summit, held in Amman, Jordan, which empha-
sized the need to put women’s issues on the pan-Arab agenda. She has been involved
with the Jordan River Foundation since its launch in 1995. During visits to New York
City in November 2002, she helped launch a new microcredit project for women in
Afghanistan, as part of the international Village Banking initiative. She has worked
closely with Count Me In (www.count-me-in.org ), a two-year-old internet-based initia-
tive that raises money from women to be loaned to other women aspiring to set up
their own small businesses and also gives scholarships for business training and tech-
nical assistance. (BBC News, November 4, 2002)

Indian NGO network encourages philanthropists to get involved


IndianNgos.com, a national Indian network of nongovernmental organizations, has cre-
ated a program called P2G (People with Power to Give) to encourage local philanthro-
pists to become more directly involved with nonprofit organizations within India.
Membership in P2G gives donors access to thousands of pages of NGO information;
training programs on nonprofit governance, measurement and social responsibility;
volunteer opportunities and a “match-making” services to match the donor with an
NGO closely linked to the donor’s interests. IndianNGOs publishes an e-magazine,
www.youandsocialpartnerships.com.

December 2002–January 2003 5


Global Giving MATTERS

Nominations sought for 2003 Right Livelihood Award


The Swedish Right Livelihood Foundation (www.rightlivelihood.se) is seeking nominees
for its 2003 awards cycle, with a deadline of April 10. The prize was established in
1980 by Swedish philanthropist and professional philatelist Jakob von Uexkull, who
endowed the foundation by selling rare postage stamps. Right Livelihood prizes are
known as the “alternative Nobels,” in part because they highlight extraordinary indi-
vidual achievement and also because they are awarded each year in Stockholm one day
before the first announcement of the Nobel Prizes. A key difference is that the awards
(four per year, each valued at $200,000) honor people from many different back-
grounds, rather than mainly the industrialized countries where most Nobel laureates
come from. According to von Uexkull, the award also aims to have a broader focus
than the Nobel prize, being given to people who develop “practical answers to such
challenges as the pollution of our air, soil and water, the danger of nuclear war, the
abuse of basic human rights, the destitution and misery of the poor and the over-con-
sumption and spiritual poverty of the wealthy.”

South African foundation partners with US youth project to improve


rural schools
The Johannesburg-based Africa Foundation (www.africafoundation.org ) has joined
forces with Kids for Africa (www.kidsforafrica.org ), a program of US-based Friends of
Africa Foundation, to encourage students to raise funds for rural schools. Its “Lights
for Learning” initiative aims to raise $10,000, enough to electrify a school in a rural
area not far from Durban. Other student-driven projects will focus on environmental
issues. The founders of Kids for Africa, which was launched in January 2002, are sister
and brother Bridget and R.J. Keating, both teenagers.

Sabera Foundation enables Spanish and other donors to help women


in India
The Madrid-based Sabera Foundation (www.saberafoundation.org ) enables donors to
support projects targeting poor women and girls in Calcutta. Sabera was created in
1999 by Spanish pop singer and songwriter Nacho Cano, who was in India to tape a
music video. In Calcutta he was struck by the immense poverty and came to know the
little girl Sabera Khatum, whom he encountered picking rags in a garbage dump. He
later brought her and her mother to Madrid. Sabera’s mother later returned to India,
while Sabera now attends school in Madrid. The foundation has programs in shelter,
health, education, nutrition and microfinance, and has enlisted prominent Spanish per-
formers to promote the cause. A US branch was launched in October 2002.

Soros’ Russian programs to merge with Eurasia Foundation


The Russia-based programs of George Soros’ Open Society Institute (OSI) will merge
with the US government-funded Eurasia Foundation and will spend US $45 million
from 2003 to 2005, according to Yekaterina Geniyeva, head of OSI-Russia. The new
foundation, not yet named, will focus on traditional charity projects such as health and
education and will develop new projects in civil law, media and local self-government.
(Moscow Times, December 18, 2002)

December 2002–January 2003 6


Global Giving MATTERS

Bulgaria holds first national charity day


The Generous Heart initiative (www.generousheart.org ) was launched last October as
Bulgaria’s nine largest cities observed the country’s first national charity day. More than
1,000 volunteers canvassed for donations in city streets, giving a sticker reading “I
Have a Generous Heart” to every donor. Planned as an annual event, each national
fundraiser will focus on a different cause that the state is unable to support adequately.
The first fundraiser supported programs for people in Bulgaria with multiple sclerosis.
(Lifestyle, October 16, 2002)

New social investment portfolio helps small businesses in Egypt and


Pakistan
The Acumen Fund (www.acumenfund.org ), a nonprofit organization created in 2001 to
link philanthropists with initiatives that promote positive global change, has created a
new portfolio, Economic and Civic Enterprise, that aims to support entrepreneurs in
Egypt and Pakistan who provide economic opportunity and voice to the poor. At its
launch in November, the portfolio contained $1.1 million. Examples of projects to
receive fund assistance include a women’s finance organization in Pakistan to make
borrowing easier for low-income women; a cooperative farm initiative in Cairo, Egypt;
and a housing program to provide access to land ownership and public utilities to
squatters in Karachi, Pakistan. Created in April, 2001, Acumen Fund is funded by
investments from Cisco Systems and the Cisco Foundation, the Rockefeller
Foundation, and several individual investors. (CNN Money, November 8, 2002)

Give2Asia celebrates first anniversary


Give2Asia (www.give2asia.org ), founded just over one year ago by The Asia Foundation
to promote philanthropy to Asia, feted its first anniversary by noting that it has facili-
tated over $3 million in charitable giving to Asia. During this time, Give2Asia provided
services to enable some 120 US donors, including individuals, foundations and corpo-
rations, to support 32 nonprofits organizations in nine countries in Asia. Projects
helped were located throughout the continent, including Afghanistan (relief and recon-
struction projects funded by the Richard and Rhoda Goldman Fund), Cambodia, China,
Hong Kong and India. In addition to Asia Foundation support, Give2Asia has also
been funded by the Ford Foundation, The Rockefeller Foundation and Taiwan-based
Himalaya Foundation. (Philanthropy News Network On-Line, November 8, 2002)

Philanthropy Center to study link between faith and giving


Indiana University’s Center on Philanthropy has announced the creation of the Lake
Family Institute on Faith and Giving (www.philanthropy.iupui.edu/nr-LakeInstitute.htm),
which aims to study the link behind faith and charity. Created with a $5 million dona-
tion from the family of the late Thomas H. and Marjorie Lytle Lake, the institute is
believed to be the first academic research center in the US focusing on how religious
beliefs affect giving.

December 2002–January 2003 7


Global Giving MATTERS

British publication seeks nominations for 2003 Charity Awards


The British magazine Charity Finance (www.charityfinance.co.uk) is launching its first
cycle of Charity Awards (www.charityawards.co.uk) as a means to honor and celebrate
excellence in nonprofit organization management and raise awareness about the non-
profit sector as a whole; nominations are now being sought. The awards, to be given at
a gala dinner in London on June 19, aim not just to promote best practices in non-
profit management but provide more knowledge to the sector as a whole.

Charity meeting highlights importance of effective “borderless giving”


The 2002 annual conference of the Charities Aid Foundation (www.cafonline.org) in
November in London included a seminar on “borderless giving” that highlighted the
need of donors to consider global philanthropy in their portfolios. Featuring a panel of
three experts – Bob Ellsworth, Director of Nonprofit Development for Network for
Good and senior strategic advisor to the DotOrg Foundation; Lilya Wagner, Associate
Director of Public Service at Indiana University Center on Philanthropy; and Tae Yoo,
Vice President of Corporate Philanthropy at Cisco Systems and President of the Cisco
Foundation – the seminar examined new trends in global fundraising, e-philanthropy
and cross-border giving programs, as well as major challenges and opportunities facing
the non-profit sector in the aftermath of the events of September 11, 2001. The sem-
inar also explored the role of new technology in breaking down geographical divides.
(Philanthropy News Network On-Line, November 7, 2002)

World Bank president urges greater corporate social responsibility


At a gathering of dozens of CEOs at the TransAtlantic Business Dialogue in Chicago
last November, World Bank president James Wolfensohn exhorted leaders to see social
responsibility as “not question of charity [but] a question of enlightened self-interest.”
He noted that the companies’ futures depend on the stability of developing nations,
which are expected to account for almost all the world’s population growth in the next
50 years. (Business Respect, November 7, 2002)

Despite endowment plunge, Silicon Valley foundation will maintain


spending levels
The Steven and Michele Kirsch Foundation, established by the founder of the web
portal InfoSeek and his wife, has announced plans to continue current spending levels,
even though the value of the endowment has plunged 80 percent since 2000, from $80
million to $16 million. This decision may mean that the foundation “might be out of
existence in four years or so,” according to foundation CEO Kathleen Gwynn, who
explains that the Kirsches don’t envision their foundation lasting in perpetuity “but
to solve problems.” Facing a choice of reducing grantmaking and cutting staff, the
Kirsches chose to maintain existing programs. (San Jose Mercury News, December 2,
2002)

Philanthropy Ink: “The New Face of Philanthropy”


In a December 2 cover article, Business Week magazine examines what it calls the
“New Face of Philanthropy,” whose leaders are noted for being more ambitious,

December 2002–January 2003 8


Global Giving MATTERS

strategic, global and results-oriented than the preceding generation. The article, which
focuses on the top 50 US-based philanthropists, observes that some of their projects
are taking on enormous issues that cross cultures, geography and economics, such as
finding cures for cancer and HIV/AIDS. It also states that these philanthropies are
truly international in scope (the foundations created by George Soros and Bill Gates
are the two best-known examples) and demand results that can be measured. Business
Week dates this “new face” of philanthropy to 1997, when cable television mogul Ted
Turner announced plans for a dramatic increase in his support for the United Nations
and challenged his philanthropic counterparts to do something similar.

RESOURCES & LINKS


Activities, web-
sites and other Worth Magazine focuses on philanthropy
cutting-edge The December 2002 issue of Worth magazine contains several articles focusing on phi-
lanthropy, including a profile of Global Philanthropists Circle member Swanee Hunt
information for
and her efforts to promote a more secure world through her organization, Women
global givers Waging Peace. The issue also presents the magazine's second annual list of what it
Links to websites with calls America’s 100 top nonprofit organizations. The introduction to that list, entitled
more details are available “To Give Well, Give Wisely”, points out that giving by the wealthy individuals makes
at the online edition of
up over a third of all philanthropic giving in the US. The issue also includes brief pro-
Global Giving Matters at
www.globalgivingmatters.org files of 25 Americans aged 45 and younger who making big impact through their phi-
lanthropy. Among them are Philip and Donna Berber, whose Glimmer of Hope
Foundation was profiled in the June-July 2001 issue of Global Giving Matters.

David Rockefeller highlights family philanthropy in memoirs


In his just-published Memoirs (New York: Random House) Global Philanthropists
Circle member David Rockefeller chronicles family and professional history, including
the philanthropy of generations of Rockefellers. Beginning early in the book, with a
section entitled “The Art of Giving,” Mr. Rockefeller describes how his grandfather,
John D. Rockefeller, engaged in his first major philanthropic undertaking, the creation
of the University of Chicago. After retiring in 1897, John D. Rockefeller devoted him-
self exclusively to philanthropy, creating the Rockefeller Foundation in 1913; the foun-
dation worked globally even then. David Rockefeller notes that while some people
describe his grandfather and father, as well as Andrew Carnegie, as having “invented
modern philanthropy,” he calls this assertion a possible overstatement. However, he
does credit his father and grandfather with using philanthropy to “emphasize the need
to move charitable activities away from treating the symptoms of social problems
towards understanding and then eliminating the underlying causes.” This approach
prompted the Rockefellers to “embrace a scientific approach and to support the work
of experts in many fields.” Throughout the book, Mr. Rockefeller describes initiatives
by various family members to use their resources to address social causes around the
world.
9
Global Giving MATTERS

GLOBAL PHILANTHROPISTS CIRCLE NEWS


For the latest information GPC Country Visit to Ecuador and the Galápagos Islands February 23
about the Global to March 6, 2003
Philanthropists Circle, visit
www.gpcparlor.org In this upcoming GPC Country Visit, the Circle and trip participants will explore critical
social, political, and economic issues in this small, but pivotal country. The participants
will meet with leaders ranging from the heads of local development initiatives to the
heads of state. The trip will also have a major component which will focus on next gen-
eration philanthropy offered for young philanthropists and their families. If you have any
questions about either of these programs, please contact Beth Cohen, Associate Director
for Programs, at +1 (212) 517-4900 ext. 104 or bcohen@synergos.org.

YOUR IDEAS WANTED


Global Giving Matters aims to present information on best practices and innovations in
philanthropy and social investment around the world. We encourage you to send us:
• Ideas about issues or people you would like to learn more about
• Examples of your own philanthropy
• Comments about this issue.
Write to us at comments@globalgivingmatters.org .
Global Giving Matters does not present solicitations of support for particular
initiatives or organizations.

The Synergos Institute The World Economic Forum Rockefeller Philanthropy Advisors
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New York, NY 10021 CH-1223 Cologny/Geneva New York, NY 10022-7001
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www.synergos.org www.weforum.org www.rockpa.org

December 2002–January 2003 10

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