ABSTRACT
DWKLQNHUSXWWKHIRFXVRQFHUWDLQLVVXHVFRQFHUQLQJWKHPDQGVRQHFHVVDULO\ GRZQJUDGHRUH[FOXGHRWKHUV,QSROLWLFDOWKHRU\ZHWRRHDVLO\LJQRUH0LOO¶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
VKRZHGDQHTXDOFRPPLWPHQWWRVRFLHWDO GHYHORSPHQWDQGVRFDQEHSODFHG
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
LVLQKLVEHOLHIWKDWDWWKHKHLJKWRILWVJOREDOSRZHU%ULWDLQ¶VFLYLOL]DWLRQZDV FRPLQJ WR D VWDQGVWLOO ,WZDV WKHPRVW VHULRXV FKDUJH WKDW0LOO HYHUPDGH DJDLQVW KLV RZQ VRFLHW\ QRW WKDW \RX ZRXOG NQRZ LW IURP WKH VHFRQGDU\ FRPPHQWDU\
)5203+,/2623+< 7232/,7,&6
2QH UHFHQW GLVFXVVLRQ RI0LOO¶V UHSXWDWLRQ VWDWHV WKDW µ0RVW FRPPHQWDWRUV DFFRUGKLPDUHSUHVHQWDWLYHSRVLWLRQLQQLQHWHHQWKFHQWXU\9LFWRULDQOLEHUDO LVP¶ $QRWKHUGHVFULEHVKLPDV µWKHPRVWFHOHEUDWHG OLEHUDO LQWHOOHFWXDO¶ $ WKLUGQRWHVWKDW0LOO¶V2Q/LEHUW\ µLVWKHPRVWFHOHEUDWHGDUJXPHQWIRUOLEHU DOLVP¶ $VVXFK2Q/LEHUW\ KDVVWLPXODWHGDYDVWVHFRQGDU\OLWHUDWXUHGHDOLQJ SUHGRPLQDQWO\ZLWK WKH WKHPHVQRWHGDW WKHEHJLQQLQJRI WKLVFKDSWHU7KLV IRFXV LV RQ LVVXHV RI SULQFLSOH WKDW DUH ERWK IXQGDPHQWDO DQG SUREDEO\ WLPHOHVVKHQFHWKHMXVWLILFDWLRQIRUFRQFHQWUDWLQJRQWKHP0DUJDUHW&DQRYDQ KDV QRWHG WKDW WKH µPHWLFXORXV VWXG\ FDUULHG RQ E\0LOO VFKRODUV KDV EHHQ ODUJHO\GLUHFWHGE\SKLORVRSKLFDOFRQFHUQV¶ 7UHDWLQJ2Q/LEHUW\ SULPDULO\DV DZRUNRISKLORVRSK\FHUWDLQO\KDVLWVMXVWLILFDWLRQLQWHUPVRIWKHNH\LVVXHV UDLVHG)XUWKHUPRUH0LOO¶VGHFODUHGPDLQSXUSRVH VXSSRUWVWKLVHPSKDVLVDV WR DQ H[WHQW GRHV WKH QDWXUH RI KLV RZQ XSEULQJLQJ DQG OLIH 0LOO¶V $XWRELRJUDSK\IRUH[DPSOHVHHPVDVPXFKRQWKHGHYHORSPHQWRIDPLQGDV RIDERG\IRUKHPRUHIUHTXHQWO\µPHHWV¶ DQGKDVEHWWHUµDFTXDLQWDQFH¶ ZLWK ERRNVWKDQZLWKSHRSOH 7KHUHLVDOVRKRZHYHUDFDVHIRUUHJDUGLQJ2Q/LEHUW\ DVDWUDFWIRUWKH
WLPHVDQGDFRQWULEXWLRQWRWKHVRFLDOGHEDWHRILWVGD\7KHVHWZRDVSHFWVDUH RIFRXUVHQRWQHFHVVDULO\VHSDUDWHRU LQFRPSDWLEOH IRUHWHUQDOTXHVWLRQVRI SULQFLSOHFDQVLPXOWDQHRXVO\UHODWHWRFXUUHQWSROLWLFDOFRQFHUQV)XUWKHUPRUH LWLVRQHRIWKHFKDUDFWHULVWLFVDQGLQGHHGRQHRIWKHDSSHDOVRI0LOO¶VSKLOR VRSK\ WKDWE\ LQFOLQDWLRQKHPRYHV IURP WKHRU\ WRSUDFWLFH 7KH UHODWLYHO\ QHJOHFWHGILQDOFKDSWHURI2Q/LEHUW\µ$SSOLFDWLRQV¶LVRQHV\PSWRPRIWKLV ,QGHHGLWZDV0LOO¶VFRQFHUQZLWKVRFLDODQGSROLWLFDOLVVXHVWKDWRIWHQGHWHU PLQHG ZKLFK SUHFLVH SKLORVRSKLFDO SUREOHPV ZHUH JLYHQ DWWHQWLRQ $GGLWLRQDOO\ 0LOO WKH SKLORVRSKHU EHFDPH 0LOO WKH 03 IRU DQG DW
:HVWPLQVWHU,WLVLQWKHVSLULWRIWKHEUHDGWKRI0LOO¶VFRQFHUQVWKDWZHKHUH WXUQIURPWKHSKLORVRSKLFDODQGPHWKRGRORJLFDODVSHFWVRI2Q/LEHUW\ WRWKH VRFLDOSXUSRVHVWKDWXQGHUOLHWKHP ,Q2Q/LEHUW\0LOOVXJJHVWHGRULQWLPDWHGZLWKYDU\LQJGHJUHHVRIH[SOLF
LWQHVVDQGFODULW\IRXUVHSDUDWHUHDVRQVZK\OLEHUW\ZDVQHFHVVDU\
,QGLYLGXDOOLEHUW\OHDGVWRWKHGHYHORSPHQWRIWKHIDFXOWLHVDQGFDSDFLWLHV WKDWDUHLQWULQVLFDQGWRDVLJQLILFDQWH[WHQWSDUWLFXODUWRHDFKLQGLYLGXDO
,QGLYLGXDOOLEHUW\LVDQHHGRIRXUKXPDQQDWXUH
/LEHUW\OHDGVWRWUXWK
,QGLYLGXDOOLEHUW\LVDSUHUHTXLVLWHIRUWKHDGYDQFHPHQWRIVRFLHW\
,WLVWKLVIRXUWKDVSHFWWKDWZLOOEHRXUFRQFHUQKHUH7KLVEULQJVXVWRWKH IXQGDPHQWDO SROLWLFDO SXUSRVH RI 0LOO¶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¶V2Q/LEHUW\ ZDVILUVWSODQQHGLQDQGSXEOLVKHGILYH
\HDUVODWHU,WZDVSURGXFHGLQDGHFDGHZKHQWKH%ULWLVKZHUHIHHOLQJSDUWLF XODUO\SOHDVHGZLWK WKHPVHOYHV7KH*UHDW([KLELWLRQRIVLJQDOOHGQRW PHUHO\UHOLHIDWKDYLQJHVFDSHGWKHWXUPRLOWKDWKDGHQJXOIHGPDQ\(XURSHDQ SRZHUVDIHZ\HDUVHDUOLHUEXWDOVRDFHOHEUDWLRQRIIUHHWUDGHDQGWKHJOREDO GRPLQDQFHRI%ULWLVK LQGXVWU\ ,Q WKHV%ULWDLQSURGXFHGRYHUKDOI WKH ZRUOGRXWSXWRIFRDODQGVWHHO DERXWKDOI WKHZRUOGRXWSXWRISLJ LURQDQG FRWWRQDQGDERXWDTXDUWHURIWRWDOZRUOGLQGXVWULDORXWSXW ,QWKH\HDU LQZKLFK2Q/LEHUW\ ZDVSXEOLVKHG4XHHQ9LFWRULD¶VVSHHFKRSHQLQJWKHQHZ VHVVLRQRI3DUOLDPHQWLQFOXGHGWKHIROORZLQJQRWHRIVHUHQLW\µ,DPKDSS\WR WKLQN WKDW LQ WKH LQWHUQDO VWDWH RI WKH FRXQWU\ WKHUH LV QRWKLQJ WR H[FLWH
GLVTXLHWXGHDQGPXFKWRFDOOIRUVDWLVIDFWLRQDQGWKDQNIXOQHVVV«DVSLULWRI JHQHUDOFRQWHQWPHQWSUHYDLOV¶ <HW DW WKH KHLJKW RI %ULWLVK SRZHU RQH RI LWV PRVW FHOHEUDWHG WKLQNHUV
GRXEWHG ZKHWKHU %ULWLVK RU HYHQ (XURSHDQ JOREDO DVFHQGDQF\ FRXOG EH PDLQWDLQHG0LOOFOHDUO\YRLFHGKLVVFHSWLFLVPLQRQHRIWKHEHVWNQRZQSROLW LFDOWKHRU\WH[WVRIKLVFHQWXU\\HWWKLVDVSHFWUHPDLQHGUHPDUNDEO\IUHHIURP FORVHVFUXWLQ\LQWKHIROORZLQJRQH ,QWHUPVRI0LOO¶VZULWLQJVRXUWZRPDLQSRLQWVRIUHIHUHQFHDUHKLV(VVD\
RQ&LYLOL]DWLRQLQZKLFKKHILUVWWKRURXJKO\RXWOLQHGDQGGLVFXVVHGKLV XQGHUVWDQGLQJRIWKHWHUPDQG2Q/LEHUW\ KLVPRVWIDPRXVDQGHQGXU LQJZRUNRISROLWLFDOWKHRU\LQZKLFKKHTXHVWLRQHGWKHGXUDELOLW\RI%ULWLVK FLYLOL]DWLRQ:H VKDOO FRPPHQFHZLWK D SUHVHQWDWLRQ RI WKH IRUPHUZULWLQJ EHIRUHWXUQLQJWRWKHFXOWXUDODQGSHUVRQDOEDFNJURXQGZKLFKIDFLOLWDWHVRXU XQGHUVWDQGLQJRI0LOO¶VFRQFHUQZLWKWKLVLVVXH
)5207+(%5,7,6+727+()5(1&+
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¶VIRUPDWLYHLQIOXHQFHZDVFOHDUO\WKDWRIWKHXWLOLWDULDQFUHHGLQFXO
FDWHGE\KLVIDWKHULQDFKLOOLQJO\WKRURXJKDWWHPSWDW LQGRFWULQDWLRQ,W LVD KHDUWZDUPLQJOHVVRQRQWKHIDLOXUHRIVXFKHIIRUWV WKDW0LOOGHYHORSHGDQ\ LQGHSHQGHQFHRIPLQGDWDOO$WWKHDJHRIWKLUWHHQKHZDVVHQWIRUD\HDUWR )UDQFHZLWK WKH IDPLO\RI6DPXHO%HQWKDP WKHEURWKHURI WKHJUHDWSKLOR VRSKHU RI XWLOLWDULDQLVP:KDWHYHU -RKQ 6WXDUW0LOO LPELEHG RI WKH IDPLO\ FUHHG WKH H[SHULHQFHZLWKRXW GRXEW DOVR VHW KLP RQ KLV OLIHORQJ SDWK RI V\PSDWKHWLFHQJDJHPHQWZLWK)UHQFKWKRXJKW2XUSUHFLVHWRSLFWKHQUHODWHV
ERWKWR0LOO¶VSODFLQJLQUHVSHFWRIWKHGRFWULQHLPSRVHGRQKLPDQGZLWKKLV IUHHO\FKRVHQLQWHOOHFWXDOUHODWLRQVKLSV,WLVWRVRPHH[WHQWDGLDORJXHZLWK WKH)UHQFK 7KH)UHQFKRIFRXUVHKDGH[SHULHQFHGWKHPRVWGUDPDWLFUHFHQWKLVWRU\
7KHPDLQKRPHRI WKH(QOLJKWHQPHQWZDV DOVR WKH ODQGRI UHYROXWLRQ7KH UDWLRQDOLW\RIWKHIRUPHUJUDSSOHGZLWKWKHWDVNRILQWHJUDWLQJWKHLUUDWLRQDOLW\ RI WKH ODWWHU:DV WKHJUHDW UHYROXWLRQRIDQXQQDWXUDO GLYHUVLRQ IURP QRUPDOLW\ RU ZDV LW SDUW RI WKH ORQJWHUP SDWWHUQ RI GHYHORSPHQW" $QQ 5REVRQ QRWHV WKDW0LOO µUHDG$XJXVWH &RPWH¶V HDUO\ 6\VWqPH GH SROLWLTXH SRVLWLYHDQGOHDUQWRIWKHVWDJHVRIKLVWRULFDOGHYHORSPHQWWKHFKDUDF WHULVWLFV RI DQ DJHRI WUDQVLWLRQ DQGPRVW LPSRUWDQWO\ WKH VLJQLILFDQFH IRU KLVWRULFDO SURJUHVV RI WKH )UHQFK 5HYROXWLRQ¶ ,Q KLV$XWRELRJUDSK\ 0LOO DFNQRZOHGJHG WKH H[WHQW WR ZKLFK WKH )UHQFK 5HYROXWLRQ DQG HYHQ DQ (QJOLVKUHZRUNLQJRILWKDGSOD\HGXSRQKLV\RXWKIXOLPDJLQDWLRQµ,OHDUQW ZLWKDVWRQLVKPHQW WKDW WKHSULQFLSOHVRIGHPRFUDF\ KDGERUQHDOOEHIRUH WKHPLQ)UDQFHWKLUW\\HDUVHDUOLHU:KDWKDGKDSSHQHGVRODWHO\VHHPHGDV LILWPLJKWHDVLO\KDSSHQDJDLQDQGWKHPRVWWUDQVFHQGHQWJORU\,ZDVFDSDEOH RIFRQFHLYLQJZDVWKDWRIILJXULQJVXFFHVVIXORUXQVXFFHVVIXODVD*LURQGLVW LQDQ(QJOLVKFRQYHQWLRQ¶ 7KLVFRQIHVVLRQLVIXUWKHULQGLFDWLRQRI0LOO¶VGHVLUHQRWMXVWWRXQGHUVWDQG
WKH ZRUOG EXW WR KHOS FKDQJH LW $QQ 5REVRQ DOVR QRWHV WKDW WKH µ6DLQW 6LPRQLDQVKDGDIXQGDPHQWDOLQIOXHQFHRQKLP7KURXJKWKHLUH\HV0LOOKDG VHHQWKHSURPLVHGODQG¶ ,QWKLVFRQWH[WZHFDQXQGHUVWDQG0LOO¶VYHU\XQ %ULWLVKLQLWLDOHQWKXVLDVPIRUWKH)UHQFKUHYROXWLRQVRIDQGDVZHOO DVKLVLQWHUHVWLQFXUUHQWVRFLDOLVWH[SHULPHQWV )URPWKH6FRWWLVK$GDPV)HUJXVRQDQG6PLWK0LOOFRXOGILQGDFRQFHUQ
ZLWK WKH SDWWHUQ RI KLVWRULFDO GHYHORSPHQW EXW E\ KLV RZQ WLPH KH FRXOG SODXVLEO\FRQFOXGHWKDW)UHQFKZULWHUVZHUHµWKHUHDOKDUELQJHUVRIWKHGDZQ RIKLVWRULFDOVFLHQFH¶ *HRUJLRV9DURX[DNLVKDVQRWHGWKDW0LOOµVDZ)UDQFH DVDODERUDWRU\RIPDQNLQGLQWKHUHDOPRIQHZLGHDVDQGPRYHPHQWVLQWKH VDPHZD\DVKLVFRPSDWULRWVDQGPRVW&RQWLQHQWDOREVHUYHUVVDZ%ULWDLQDV D ODERUDWRU\ LQ WHUPV RI LQGXVWULDO DQG HFRQRPLF GHYHORSPHQW¶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µ&RPSDULVRQRI WKH7HQGHQFLHVRI)UHQFKDQG(QJOLVK ,QWHOOHFW¶+LV ILQGLQJV GLG QRW IODWWHU KLV RZQ FRXQWU\ 7KH (QJOLVK LW VHHPHG µKDYH QHYHU KDG WKHLU SROLWLFDO IHHOLQJV FDOOHG RXW E\ DEVWUDFWLRQV¶ DQG ZHUH QRW
SDUWLFXODUO\JLYHQWRWKHRUL]LQJ7KHVXVSLFLRQWKDWKHUH0LOOPLJKWKDYHEHHQ LPSOLFLWO\EXWGHOLEHUDWHO\GRZQJUDGLQJKLVXWLOLWDULDQKHULWDJHLVQRWUHGXFHG E\KLVREVHUYDWLRQWKDWDQ\UHFRPPHQGHGEHQHILWKDVWREHDUJXHGRQWKHEDVLV RILWVLPPHGLDWHSUDFWLFDOFRQVHTXHQFHVUDWKHUWKDQLWVHOHYDWHGSULQFLSOHV,Q (QJODQGDQ\WKLQJVXVSHFWHGRIEHLQJµSDUWRIDV\VWHP¶ ZRXOGEHOLQNHGZLWK XQDFFHSWDEOHµ8WRSLDQVFKHPHV¶7KH)UHQFKLQFRQWUDVWHYLGHQWO\XQLWHGWKH VSHFXODWLYH HPLQHQFH RI WKH *HUPDQV ZLWK WKH SUDFWLFDO TXDOLWLHV RI WKH (QJOLVK ,Q µSROLWLFDO SKLORVRSK\ WKH LQLWLDWLYH EHORQJV WR )UDQFH DW WKLV PRPHQW¶ EHFDXVHRIµWKHIDUPRUHHOHYDWHGWHUUDLQ RQZKLFKWKHGLVFXVVLRQLV HQJDJHG¶ 7R 7RFTXHYLOOH KH ZURWH µ<RX NQRZ WKDW , ORYH WKH )UHQFK¶ GHVFULELQJ)UDQFHDVDFRXQWU\µWRZKLFKE\WDVWHVDQGSUHGLOHFWLRQV,DPPRUH DWWDFKHGWKDQWRP\RZQ¶ ,Q0LOOGHVFULEHGµWKH)UHQFKPLQG¶ DVµWKH PRVWDFWLYHQDWLRQDOPLQGLQ(XURSHDWWKHSUHVHQWPRPHQW¶ DQGGHFODUHGWKDW µWKHKLVWRU\RIFLYLOL]DWLRQLQ)UDQFHLV WKDWRIFLYLOL]DWLRQLQ(XURSH¶ 7KLV UHSHDWVDFODLPPDGHHLJKWHHQ\HDUVHDUOLHU +LVYLHZZDVQRWDVRQHVLGHG DVWKHVHH[WUDFWVPLJKWVXJJHVWKRZHYHUIRU0LOOFDUHGOLWWOHIRU5REHVSLHUUH DQG1DSROHRQV,DQG,,, )URP6FRWWLVK SROLWLFDO HFRQRP\ DVZHOO DV IURP)UHQFK VWXGLHV RI WKH
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¶VGLVWDVWHIRUIHXGDOQRVWDOJLDEXWQRWKLVGLVOLNHRI
KLVWRU\0LOOZDQWHGWRNQRZKRZRXUVRFLHW\KDGHPHUJHGDQGDOVRZDQWHG WKH VWXG\ RI WKH SDVW WR EH PHWKRGRORJLFDOO\ ULJRURXV DQG FRQVHTXHQWO\ UHOLDEOH\HWKLVUDWLRQDOLVPGLGQRWOHDGWRGHWHUPLQLVP+HZDVOHVVFRQIL GHQWWKDQ&RPWH6DLQW6LPRQRUHYHQ7RFTXHYLOOHOHWDORQH0DU[WKDWWKHUH ZHUH ODZV RI GHYHORSPHQW OHDGLQJ WR DQ DVFHUWDLQDEOH IXWXUH0LOO¶VZKROH HGXFDWLRQZDVRQHZKLFKVDZSURJUHVVDQGPHQWDOFXOWLYDWLRQDVIXQGDPHQ WDO+LVSROLWLFDOSXUSRVHZDVWRRYHUFRPHSDUWLDOLQWHUHVWVDQGPRYHWRZDUGV WKH JUHDWHVW KDSSLQHVV RI WKH JUHDWHVW QXPEHU %RWK KLV LQWHOOHFWXDO DQG HPRWLRQDOPDNHXSOHGWRWKHYLHZWKDWLPSURYHPHQWZDVGHILQLWHO\SRVVLEOH <HWHYHQVRWKHUHDUHZD\VLQZKLFK0LOOFRPELQHG(QOLJKWHQPHQWUDWLRQDO LVPZLWKWKH5RPDQWLFFULWLTXHRILW7KLVGXDOLW\LVEDVLFWRRXUZKROHWRSLF
)5207+(5$',&$/6727+(&216(59$7,9(6
<HW VLPXOWDQHRXVO\ ZLWK KLV UDGLFDO KRSHV IRU WKH IXWXUH IURP &ROHULGJH &DUO\OHDQG7RFTXHYLOOHDPRQJRWKHUV0LOOEHFDPHDZDUHRI5RPDQWLFDQG
FRQVHUYDWLYH LQIOXHQFHV )URP WKHVH SHUVSHFWLYHV GHYHORSPHQW ZDV QRW DQ XQPLWLJDWHG JRRG ,W KDG LWV GUDZEDFNV ,W WKUHDWHQHG WR SURGXFH D PDVV VRFLHW\ WKDW VLOWHG XS WKH VWUHDP IURP ZKLFK LW KDG EHHQ QRXULVKHG 7KH &KLQHVH H[DPSOH GHPRQVWUDWLQJ WKDW HYHQ D GHYHORSHG FLYLOL]DWLRQ FRXOG FRPHWRDVWDQGVWLOOILWVZLWKWKHFRQVHUYDWLYHPRWLIWKDWPRGHUQL]DWLRQSXWV FLYLOL]DWLRQXQGHUWKUHDW,QZKDWIROORZVZHVKDOOVHHWKDW0LOOFRPELQHGD UDGLFDO DFFHSWDQFH RI SURJUHVV ZLWK FRQVHUYDWLYH GRXEWV FRQFHUQLQJ LWV FXOWXUDOFRVWDQGVXVWDLQDELOLW\
6800$5< 2) 7+()2//2:,1* &+$37(56
,Q&KDSWHUZHVKDOOIRFXVRQ0LOO¶VGLVFXVVLRQRIFLYLOL]DWLRQLQWKH HVVD\ RI WKDW QDPHZKLOH DOVR QRWLQJ KLV WUHDWPHQW RI WKDW WKHPH LQ RWKHU ZULWLQJVSULRUWRWKHSXEOLFDWLRQRI2Q/LEHUW\ LQ &KDSWHU SXWV FLYLOL]DWLRQ LQ LWV FRQWH[W E\ GLIIHUHQWLDWLQJ LW IURP WKH
EDUEDULVP WKDW ZDV VHHQ WR H[LVW HOVHZKHUH %DVLF WR 0LOO¶V QRWLRQ RI EDUEDULVP WKH µRWKHU¶ WKDW ZDV QRW FLYLOL]HG OLNH µXV¶ ZDV KLV IDWKHU¶V FHOHEUDWHGERRNRQ,QGLDDVZHOODVKLVDWWHPSWVWRMXVWLI\LPSHULDOLVP &KDSWHU VKRZV KRZ FLYLOL]DWLRQ LV FRQFHSWXDOO\ OLQNHG WR WKH LGHD RI
EDUEDULVP DQG KRZ LGHDV RI SURJUHVV VRXJKW WR RXWOLQH D GHYHORSPHQWDO VHTXHQFHIURPEDUEDULVPWRFLYLOL]DWLRQ 7KXVIDUEDUEDULVPKDVEHHQVDIHO\GLVWDQFHGHLWKHULQUHPRWHFRXQWULHVRU
HOVHLQHDUOLHUWLPHLQRXURZQ(YHQPRUHWKUHDWHQLQJLVWKHWKHPHRI&KDSWHU WKDWFLYLOL]HGVRFLHWLHVWKHPVHOYHVDUHQRWVHFXUH:KDWWKUHDWHQHGZDVOHVV WKHUHVXVFLWDWLRQRISULPLWLYHEDUEDULVPEXWUDWKHUDQRVVLILFDWLRQWKDWZDVWKH LQWULQVLF SURGXFW RI FLYLOL]DWLRQ LWVHOI%RWK 6FRWWLVK SROLWLFDO HFRQRP\ DQG 7RFTXHYLOOH¶V WKHRU\ RI PDVV VRFLHW\ FRQWDLQHG LQWLPDWLRQV WKDW PRGHUQLW\ FUHDWHGSUREOHPVWKDWLWFRXOGQRWVROYHDQGWKDWWKHUHIRUHRSWLPLVWLFGHWHU PLQLVWLF DQG PRQROLQHDU WKHRULHV RI XQDOOR\HG SURJUHVV ZHUH LQ QHHG RI FRQVLGHUDEOHUHYLVLRQ &KDSWHUGHDOVZLWK WKHH[DPSOHRI&KLQDDQGWKHZDUQLQJWKDWHYHQD
JUHDWDQGGHYHORSHGFLYLOL]DWLRQFRXOGFRPHWRDVWDQGVWLOOXQOHVVLWIDFLOLWDWHG DQG JXDUDQWHHG IUHHGRPRI RSLQLRQ ,Q KLVPRVW SHVVLPLVWLF DFFRXQW RI KLV RZQVRFLHW\0LOOEHOLHYHGWKDWWKHEDWWOHIRUOLEHUW\DQGKHQFHWKHVWUXJJOHIRU FRQWLQXHGJOREDO OHDGHUVKLSZDVEHLQJ ORVW7KHVLWXDWLRQFRXOGEHUHVFXHG RQO\E\DYLJRURXVFRXQWHUPRYHPHQWDJDLQVWDOOWKHGRPLQDQWWHQGHQFLHVRI WKHDJH ,Q&KDSWHUZHVKDOOQRWH WKDW0LOO¶VZDUQLQJRQPDVVVRFLHW\DQG WKH
RVVLILFDWLRQRIFLYLOL]DWLRQZDVQHLWKHUWDNHQVHULRXVO\E\FRQWHPSRUDU\FULWLFV QRUJUDQWHGPXFKDWWHQWLRQRUDQDO\VLVE\SROLWLFDOWKHRULVWVLQRXURZQWLPH )LQDOO\ ZH VKDOO FRQVLGHU WKH H[WHQW WR ZKLFK RXU GLVFXVVLRQ KDV DIIHFWHG 0LOO¶VVWDQGLQJDVDSUHHPLQHQWDGYRFDWHRIOLEHUDOLVP