Suchergebnisse

With a whirlwind of dramatic events gripping the world's attention, it can be easy to forget that we are now less than one year away from the 2024 presidential election.Despite their expected focus on domestic issues, candidates will have a lot to answer for this cycle when it comes to foreign policy as the war in Ukraine drags on and U.S.-China relations continue to deteriorate.The Democratic Party has chosen not to hold debates despite growing concerns about President Joe Biden's chances next year. With only a couple of months to go before the primaries start, the Quincy Institute decided that it would be useful to survey Biden's challengers from the left on how they would handle a range of foreign policy issues if elected.The candidates' responses show interesting differences on a range of questions, from a potential Israeli-Saudi normalization deal to the possibility of using military force to fight the cartels in Mexico. The questionnaire went out before the October 7 Hamas attacks against Israel and the subsequent war in Gaza, but we pulled together candidates' reactions to the events where possible.We received responses from Democratic candidate Marianne Williamson as well as independent candidates Robert F. Kennedy Jr. and Cornel West. Biden's campaign declined to participate, so we have aggregated relevant quotes and information about the president's stances where possible. We did the same for Rep. Dean Phillips (D-Minn.), who entered the race in late October and has not responded to our requests. We will update this page if we receive further responses.Biggest challenges to U.S. security; how to avoid war with China; potential negotiations to end the war in Ukraine; U.S. role in Saudi-Israeli normalization; withdrawing troops from Middle East; military force and the Mexican cartels; Israel-Hamas warWhat, in your view, are the three most pressing challenges to U.S. national security?Joe Biden (D)While President Biden has not directly addressed this question, his national security adviser said the following about the White House's 2022 National Security Strategy: "Our strategy proceeds from the premise that the two strategic challenges — geopolitical competition and shared transnational threats — are intertwined. We cannot build the broad coalitions we need to out-compete our rivals, if we sideline the issues that most directly impact the lives of billions of people." He further argued that "this is a decisive decade for shaping the terms of competition, especially with the PRC [China]. This is a decisive decade for getting ahead of the great global challenges — from climate to disease to emerging technology."Marianne Williamson (D)"The three most pressing challenges to U.S. national security are the nuclear threat, climate change, and our inability to go beyond the adversarial positioning in which countries view each other. We are closer to nuclear war than we've been in a long time. We must move towards a nuclear-free world, and we must begin by adopting a no first use policy. Once we adopt this policy, it will be much easier for us to get other nuclear-armed countries to do the same. There is no threat I am more concerned about than climate change. We are living through the last few years where we have a chance to save humanity. We must immediately undergo a just transition from a dirty fossil fueled economy to a clean renewable economy, and create millions of good jobs in the process. The time for incrementalism on climate is over. If we only view other countries through an adversarial lens, in terms of how they can harm or serve our interests, then we cannot deal with these crucial issues that challenge the security of all of us. We must work together with the international community for the common interest so that we can begin to deal with climate change, nuclear weapons, pandemics, and other threats."Robert F. Kennedy Jr. (I)"The most pressing challenges are the ones we have created ourselves. First is the risk of nuclear war, which belligerent and provocative U.S. policy has elevated to levels not seen since the Cold War.The second is the bankrupting of America's wealth, the result of decades of elevated military spending. The trillions spent on armaments could have gone toward building modern infrastructure, feeding and housing people, tackling chronic disease, and nourishing a thriving domestic economy.A third threat to national security is the epidemic of violence in our streets and in our homes. When we wage endless wars abroad, their mirror image afflicts us at home. Realistically, our nation is not threatened by an armed invasion by a foreign power. We have to broaden what we mean by 'national security' to include the things that actually make Americans feel insecure."Cornel West (I)"Climate Change: Climate change is not an endpoint that awaits us in the distant future, it is among us right now and impacting lives across the country and the entire world, especially the most vulnerable and most disadvantaged populations here in the U.S. — Black, Brown, Indigenous, and the poor. According to the National Oceanic and Atmospheric Administration (NOAA), climate change-related damages cost the United States an estimated $165 Billion in 2022, Hurricane Ida, a Category 4 storm that massacred communities in Florida, including the loss of 150 lives, cost taxpayers approximately $112.9 Billion alone. Moreover, NOAA estimates that in the last 40 years, 341 storms exacerbated by climate change have cost the nation more than $2.5 Trillion. To put that into perspective, that's $80 Billion more than the national deficit of approximately $1.7 Trillion, thus far, for Fiscal Year 2023, and 1.5 percent of the national debt that stands at $161.7 trillion and counting. A nation already in massive debt, coupled with the astronomical costs of a growing climate crisis is the direct antithesis of national security. It's undeniable that more calamities associated with the climate crisis, including more powerful weather incidents that induce extreme flooding, extreme heat, and other environmental stressors, are inevitable. These events will have profound impacts on myriad systems and institutions that are necessary to maintain a livable society including, but not limited to, the production of food, access to clean water sources, the quality and availability of housing, transportation, education, and healthcare. The collapse of these systems could reasonably engender massive social unrest that would result in the massive displacement and forced migration of people as we are already witnessing with the United Houma Nation, Pointe-au Chien Indian Tribe, and Biloxi-Chitimacha-Choctaw of present-day Louisiana, who are the first federally recognized climate migrants, whose land is literally sinking due to oil and gas extraction in the Gulf of Mexico, which has rendered their land susceptible to the impacts of climate change. In fact, the United Nations Office of the High Commissions for Refugees has predicted that more than 200 million people, globally, will be forced to relocate due to climate change, including 40% of United Statesians who currently reside in coastal areas. From the atrocities of Hurricane Katrina to the current situation at the United States border with Mexico, we have already witnessed the consequences of climate-related breakdowns of social, economic, and other systems necessary to maintain quality of life and life itself breakdown all coupled with mass migration of innocent people seeking refuge.Increased Militarism: The United States is the single biggest military spender in the world with an annual budget roughly the size of the next seven largest military budgets combined. According to records kept by the National Priorities Project at the Institute for Policy Studies (IPS), in any given year, military spending accounts for over half of the federal government's annual discretionary budget. The U.S. military's bloated budget is utilized to build weapons and warcraft, which are in turn utilized to threaten other nations and demand their cooperation with the perceived U.S. military hegemony or offered to cooperative nations as part of military alliances. In FY 2023 alone, out of a $1.8 trillion federal discretionary budget, $1.1 trillion – or 62 percent – was for militarized programs. On top of war and weapons for the Pentagon, these expenditures include domestic militarism for police departments across the country and mass incarceration, as well as increased detentions and deportation, which represent direct threats to the security of Black, Brown, Indigenous and poor people in the United States. As we are witnessing right now, the current administration is complicit in thousands of civilian deaths by giving Israel military aid at $3.8 billion this year, half of which goes to Israel's missile system. They are now requesting a combined supplemental aid package at $106 billion for Israel along with Ukraine, Taiwan and the Indo-Pacific region, and US immigration enforcement at the US-Mexico southern border. To put this in perspective, combined with the estimated $113 billion in military aid the US has already sent to Ukraine, should the Congress grant President Biden's additional $105 billion package to Ukraine and Israel, this would represent almost 60% of the initially estimated $379 billion in climate change expenditures over 10 years included as part of the so-called Inflation Reduction Act. Further, the $105 billion military aid package to Israel and Ukraine is one hundred times the paltry $1 billion that the US pledged to the Green Climate Fund earlier this year, to fund climate mitigation and adaptation in the formerly colonized countries of Africa, Asia, Latin America, and the Pacific. Our friends at IPS also indicate that the U.S. could safely redirect at least $350 billion from the Pentagon's current spending per year and achieve true security by ending wars, reducing our aggressive posture overseas, and reining in military contracts that drain public coffers for private gain - all measures that would actually increase national security, while making resources available for critical domestic needs including, but not limited to, increased access to healthcare, improving the nation's broken education system - including an iniquitous student loan debt crisis, and real action to address the climate crisis. With the largest military in the world, the US is the single largest greenhouse gas emitting institution and consumer of fossil fuels on the entire planet, with a carbon footprint bigger than 140 other countries. The environmental and climate impacts of global militarism and war are staggering. Militarization continues to increase greenhouse gas emissions and pollute and poison land, water and air through weapons production, storage, and use, which is ironic Defense Secretary, Lloyd Austin, himself recently declared, 'There is little about what the Defense Department does to defend the American people that is not affected by climate change. It is a national security issue, and we must treat it as such.'Rising White Supremacy and Nationalism: We have already observed how the interlinked crises of the calamities associated with climate change, which push those disproportionately impacted further to the margins and thereby increasing the militarization of the southern border, urban areas, and throughout the world to address associated entropy of social systems and infrastructure tends to increase sentiments that beguile far too many U.S. residents to embrace elements of white supremacy ideology, thereby increasing instances of violence and acceptance of authoritarian and fascist paradigms that represent clear and present dangers to national security – no one knows this better than the U.S. Department of Justice. In 2001, Attorney General, Merrick Garland admonished the Senate Appropriations Committee stating, in part, "Domestic violent extremists pose an elevated threat in 2021 and in the FBI's view, the top domestic violent extremist threat we face comes from racially or ethnically motivated violent extremists, specifically those who advocate for the superiority of the white race." This salient issue has the potential to literally tear our nation asunder. A nation this divided is itself a national security risk that can be taken advantage of by nations hostile to the U.S. due to imperialist and interventionist past and present foreign policies of our country and their lasting impacts to [a] marked number of nations across the globe. Dismantling growing white supremacy and nationalism will require a multifaceted and intersectional approach that seeks to deracinate the root causes of this epidemic that prevents the U.S. from living up to its best self while also remaining a seemingly indelible threat. This will require tying requisite economic relief from an oligarchic approach to wealth accumulation and redistribution that exacerbates the white supremacy ideology ensconced in the fabric of this nation in such a way that has been negatively radicalizing poor white folk who may not even realize how the capitalist domination system upheld by the political duopoly extract from them as much as non-white people they are bamboozled to hate and stigmatize. I am confident that my Economic Justice prescriptions that include establishing a federal Universal Basic Income commission, wealth tax on all billionaire holdings and transaction, ending all tax loopholes for the oligarchy, and establishing a national $27 minimum wage, with special considerations for specific geographies where $27/hour would not be a family-sustaining wage, will be key steps in eviscerating the rise of white supremacy and nationalism in our nation that hurts the people perpetrated against as much as the people doing the perpetrating."As president, what would you do to avoid a direct military confrontation with China?Joe Biden (D)Biden has not directly addressed this question since becoming president, but a White House readout from his meeting with Chinese President Xi Jinping last year gives a good summary of his administration's stated approach to relations with China. "President Biden explained that the United States will continue to compete vigorously with the PRC, including by investing in sources of strength at home and aligning efforts with allies and partners around the world. He reiterated that this competition should not veer into conflict and underscored that the United States and China must manage the competition responsibly and maintain open lines of communication. The two leaders discussed the importance of developing principles that would advance these goals and tasked their teams to discuss them further. President Biden underscored that the United States and China must work together to address transnational challenges – such as climate change, global macroeconomic stability including debt relief, health security, and global food security – because that is what the international community expects."Marianne Williamson (D)"We absolutely cannot have a direct military confrontation with China, which would be one step away from World War III and nuclear Armageddon. The U.S. must accept that we are in a multipolar world. While I am deeply concerned about China's authoritarianism and serious violations of human rights, I do not think that China is interested in invading the U.S. or in starting a war with us. While we should do what we can through peaceful diplomacy to lessen Chinese human rights violations, we cannot start World War III between two nuclear-armed countries. Our military must stop trying to encircle China in the South China Sea. Instead, we must talk to China and seek peaceful coexistence."Robert F. Kennedy Jr. (I)"We believe that China has no desire for military confrontation. We will therefore ratchet down the tensions and cease the provocations in the South China Sea and elsewhere. We will adopt a posture that does not see China as an 'adversary,' and begin to negotiate arms control treaties in good faith so that both countries can reduce military spending to better the lives of their citizens."Cornel West (I)"We all know where a direct military confrontation with the People's Republic of China (PRC) will lead — irreparable nuclear holocaust that will lead to the loss and alteration of hundreds of millions of innocent lives over a conflict engendered by two so-called superpowers. We need to be honest with the people of the world, the U.S. and PRC are currently in a cold war that must be thawed to save lives and a global economy both hanging in the balance. The first step in thawing the current cold war will require a cessation to the myriad proxy wars that use nations like Ukraine, Taiwan, and numerous global south nations from Africa to Southeast Asia, to Latin America as pawns in an arms and resource extraction race. As president I will cease the saber rattling and chest beating that are doing nothing but instigating the PRC with military war games in waterways of Southeast Asia such as the Sea of Japan, Yellow Sea, East China Sea and others. I am confident this will open pathways for diplomacy that leads to cooperation in lieu of competition with the PRC. I agree with the Quincy Institute's assessment that the current administration's rhetoric of competition with the PRC is a feckless attempt to marginalize and exclude the nation from the global community, which in turn pushes them to form alliances with nations the U.S. also finds itself in a contemporary cold war with including, but not limited to, the Islamic Republic of Iran and Russia. One area where I believe we should especially be cooperating rather than competing with the PRC is the climate crisis. While it's true that the PRC is the largest emitter in the world, the U.S. remains the largest historic emitter despite only representing five percent of the world's population. Planetary survival literally requires less finger pointing at who is most responsible for the climate crisis and more finger pointing towards mutual and cooperative solutions. And rather than compete with the PRC for requisite critical resources to develop the infrastructure for renewable energy and regenerative economies, we must cooperate with them such that we don't render the need to address the climate crisis into a rationalization for casus belli over possession critical resources that will also drag global south nations into proxy wars they want no part of. The PRC, the U.S., and the entire world has a collective interest in protecting lives and the planet from the impacts of climate change. As president, my first step in avoiding a military confrontation with the PRC would be to invite and work with them to be a leading partner in addressing the climate crisis by exchanging ideas, resources, and technologies that can rapidly emancipate both nations from reliance on fossil fuels, which will improve relations, cooperation, and the habitability of the planet at once, while also preventing a military confrontation that will take more lives than the climate crisis."Is it in the U.S. national interest for the president to convene negotiations in an effort to end the war in Ukraine?Joe Biden (D)Biden generally emphasizes that Ukraine should be the driving force behind any peace negotiations and has argued that Russian President Vladimir Putin has not shown signs that he is ready to negotiate. He has, however, helped to convene several international conferences to discuss a diplomatic path forward, one of which reportedly included discussions about concessions that Ukraine may make in exchange for peace. (The administration denied these reports.)Marianne Williamson (D)"Firstly, this question is framed in terms of the 'U.S. national interest,' but I think it's time we start concerning ourselves more with the interests of humanity as a whole than the interests of the American government or American corporations, which is usually what is meant by 'U.S. national interest.'Yes, I think the U.S. should convene negotiations with Russia and Ukraine. Russia's invasion of Ukraine is a despicable crime, and we should support Ukraine and their autonomy. However, we need to do what we can to bring about a just but realistic peace. It seems extremely unlikely that either side in this conflict will have a complete victory over the other anytime soon, so if we don't want to let this draw out for two decades like our war in Afghanistan, then we should press for negotiations. I think that the withdrawn letter by progressive Congress members from last year that urged negotiations was a good and reasonable letter, and they should not have buckled to pressure and withdrawn it."Robert F. Kennedy Jr. (I)"Yes. Current U.S. strategic thinking is that the war serves the national interest by weakening Russia. That thinking is faulty on two counts. First, it is not weakening Russia. Second, a weak and unstable Russia would make us much less secure, not more secure. The United States and the world will be best served when Russia knows that we are not out to destroy her."Cornel West (I)"The conflict between Ukraine and Russia is not going to be ameliorated by military means. With $113 billion of taxpayer dollars already sent to Ukraine leading to no more than an endless war of attrition, as well as poll numbers indicating dithering support for a series of blank checks to continue it, it's clear the people of the United States have had enough. It's not just in the national interest for a diplomatic solution to this conflict, it's the duty of the President of the United States to lead this process with our global partners in Europe, Asia, and Africa. As president, I will give Ukraine no other choice but to enter a diplomatic process as part of my commitment to cease all war funding and weapons to Ukraine and instead invest in peacemaking."If Saudi Arabia agreed to normalize relations with Israel but requested a guarantee from the United States to defend the Kingdom militarily in exchange, would you seek to ratify a treaty making that commitment?Joe Biden (D)President Biden has not directly commented on this proposal, but his administration has led the initiative to negotiate a defense commitment in exchange for normalization.Rep. Dean Phillips (D)Phillips has endorsed the Biden administration's approach. "Never did we imagine it possible in our lifetimes to see the possible normalization of relations between the Saudis and Israelis. It's an extraordinary and historic opportunity not just for these two countries, but for the entire world," he told NPR. "The United States plays a significant role relative to a defense pact with the Saudis equipment and materiel relative to their military and potentially a civilian nuclear program as well. If those things can be met and also meeting some of the needs of the Palestinians, this could be an extraordinary legacy at a time the world surely needs it." Marianne Williamson (D)"No. The U.S. cannot get involved in another war in the Middle East – especially not in order to defend Saudi Arabia, arguably the worst human rights violator in the region. It is time the U.S. stops aiding Saudi Arabia and Israel in their egregious human rights violations."Robert F. Kennedy Jr. (I)"We think the premise of this question to be unlikely. Saudi Arabia is armed to the teeth and has no need of such a guarantee. As it has good relations with most other nations, its [only] plausible national security threat is Iran. However, much of the Sunni-Shiite conflict in the past arose from U.S. geopolitical maneuvering that elevated tensions throughout the region."Cornel West (I)"I wouldn't even qualify this request as a treaty as it would be more of a death sentence for innocent civilians in the region and more service members, too many who have already been lost due to U.S. empire building in the Middle East, mainly to protect oil profits of fossil fuel cartels both domestically and globally. We need less iron domes and a more iron-clad diplomatic process that leads to lasting peace and mutual dignity for all people in the Middle East. To this end, as president I would insist that any normalization of relations between the Kingdom of Saudi Arabia and the State of Israel include immediate steps to liberate Palestinian people from occupation and a wanton cycle of violence that's killing precious Palestinian and Israeli lives alike."As Commander-in-Chief, would you bring home the U.S. troops currently stationed in Iraq and Syria?Joe Biden (D)While Biden has not directly addressed this question, a senior Pentagon official recently said the U.S. "has no intent to withdraw in the near future" from Syria.Marianne Williamson (D)"Yes I would, but in Syria, I would first negotiate an agreement that ensures the Kurds will not be harmed before withdrawing the troops that are protecting them."Robert F. Kennedy Jr. (I)"Yes. Those nations do not want our troops there. I will instigate bold peace initiatives in places where there are still military tensions, in some cases replacing troops with international peacekeepers."Cornel West (I)"As indicated in my Policy Pillars Rooted in a Movement of Truth, Justice, and Love, as president I would immediately embark on a responsible and expeditious closure of global U.S. military bases as part of a larger initiative to cease and desist U.S. empire building and maintenance and slash the bloated military budget, including the disbanding of NATO, such that we can reinvest those funds in myriad social and economic justice programs domestically. As tensions in the Middle East associated with the crisis in Palestine/Israel grow, the U.S. presence is only exacerbating an already incendiary situation while putting brave service people in harm's way for no other reason than to maintain U.S. empire and a military hegemony in a region that needs less bullets and rockets and more diplomacy. To this end, as president, I would bring those troops home immediately, honor them for their service and ensure a Just Transition so that they can use the skills they gained in the military and put them to use for beneficial services to the people of the U.S."If elected, would you request an authorization from Congress to use military force against drug cartels in Mexico?Joe Biden (D)Biden has not commented directly on calls to authorize military force against the cartels, but a National Security Council spokesperson said in April that the administration "is not considering military action in Mexico.""Designating these cartels as foreign terrorist organizations would not grant us any additional authorities that we don't already have," the spokesperson added.Marianne Williamson (D)"No. The U.S. has invaded and militarily intervened in Latin America time after time, and it has only brought violence and misery and fueled the immigration that we now complain about. It is time we reject the imperialist Monroe Doctrine, which declared Latin America our backyard. It is time we respect our neighbors to the south and stop invading their countries."Robert F. Kennedy Jr. (I)"Absolutely not. The Mexicans have the power to overcome the drug cartels themselves. We can aid them by sharing intelligence, by shutting down the illegal weapons trade, by cracking down on money laundering activities of US banks, and by prosecuting the cartels' collaborators in this country."Cornel West (I)"Absolutely not. To be clear, asking the Congress for authorization to use military force in Mexico would essentially be asking Congress to approve a military invasion through a declaration of war against Mexico. The so-called war against drugs in the United States has been and continues to be an abject failure. This 50-year war has been used as a rationalization for crimes against humanity, especially those most marginalized by failed drug policies - Black, Brown, Indigenous and poor people, who have been subjected to a racialized and classist mass incarceration pogrom that has needlessly locked up over 400,000 people for non-violent drug-related crimes between 1980 and 1997 alone. A failed domestic drug war should not be an impetus to start a foreign drug war in the sovereign territory of one of our North American partners. It should instead be an impetus to enact efficacious policies that treat addiction as a national threat to public health. Instead of increasing militarism and launching a foreign war, we should declare war against the lack of access to healthcare and the lack of economic opportunities that contribute to drug use. Reducing and decriminalizing drug use in the United States will directly reduce the amount of drugs that are smuggled across the border, thereby reducing revenues for drug cartels in Mexico. This is less an issue of militarism and more an issue of addiction driven by supply and demand."Reactions to Israel-Hamas warJoe Biden (D)In a speech on Oct. 20, Biden said: "In Israel, we must make sure that they have what they need to protect their people today and always.The security package I'm sending to Congress and asking Congress to do is an unprecedented commitment to Israel's security that will sharpen Israel's qualitative military edge, which we've committed to — the qualitative military edge.We're going to make sure Iron Dome continues to guard the skies over Israel. We're going to make sure other hostile actors in the region know that Israel is stronger than ever and prevent this conflict from spreading.Look, at the same time, [Prime Minister] Netanyahu and I discussed again yesterday the critical need for Israel to operate by the laws of war. That means protecting civilians in combat as best as they can. The people of Gaza urgently need food, water, and medicine."Rep. Dean Phillips (D)In a long tweet, Phillips said, "The destruction of Hamas is necessary, but the military campaign must follow international law and conventions of civilized nations. [...]I support a pause in hostilities and the immediate safe passage of civilians from Gaza into temporary shelters in Egypt and/or Jordan and the largest humanitarian relief effort in world history.I am pro-Israeli and anti the Netanyahu government — and [its] enabling of settlements on Palestinian land. [...]Israel has a right to exist, defend itself, and ensure the terror and butchering of Oct 7 never happens again.Palestinians have a right to a nation of their own, and that begins with a free and fair election for the first time since 2006 in which a choice can be made; peace or war.Israelis must also be afforded the same right to choose peace or war."Marianne Williamson (D)Williamson tweeted: "For Israel to prosecute an all out war on Gaza is already a catastrophe for the people of Gaza. It can easily become a catastrophe for the people of Israel as well. There's no end game there, for them or for the rest of the world, that doesn't multiply the horror. The United States should join an international consortium — Egypt, Jordan and others — in efforts to secure release of the hostages and cessation of the bombing."Robert F. Kennedy Jr. (I)On Oct. 7, Kennedy said the following in a statement: "This ignominious, unprovoked, and barbaric attack on Israel must be met with world condemnation and unequivocal support for the Jewish state's right to self-defense. We must provide Israel with whatever it needs to defend itself — now. As President, I'll make sure that our policy is unambiguous so that the enemies of Israel will think long and hard before attempting aggression of any kind.I applaud the strong statements of support from the Biden White House for Israel in her hour of need. However, the scale of these attacks means it is likely that Israel will need to wage a sustained military campaign to protect its citizens. Statements of support are fine, but we must follow through with unwavering, resolute, and practical action. America must stand by our ally throughout this operation and beyond as it exercises its sovereign right to self-defense."Kennedy later warned against using the attacks and subsequent war as a justification for war with Iran. "It didn't take long for the neocons in Washington to spin the Hamas terror attacks to advance their agenda of war against Iran," he tweeted on Oct. 27. "If President Biden doesn't resist them, they might get their wish."Cornel West (I)














In a recent statement, West said, "US taxpayers want no part in funding the Israeli war machine that is committing genocidal war crimes in Gaza. We need stronger, clearer headed representation like this within our highest levels of government." He has also said, "We want a ceasefire. We want an end of the siege. We want an end of occupation. We want equal rights, equal dignity, and equal access for Palestinians and Jews."

Financial consumer protection regulation reflects the regulator's and policy makers' concerns with the relationship between financial institutions and their clients. Most emerging markets and developing economies (EMDEs) researched for this guide have regulated at least one financial consumer protection topic. Each detail in the regulatory requirements impacts how the supervisor enforces them in practice and which tools and techniques will work best. For example, a rule simply requiring disclosure of an item will be checked by the field supervisor differently than a rule requiring the item to be disclosed at a specific moment and in a specified format. Ignoring the time dimension of this rule can jeopardize its core goal. This guide is an attempt to help bank supervisors enforce such regulations. It is divided into following sections: section one gives introduction. Section two details guidance points in eight areas of interest for supervisory staff and agencies, while section three suggests a prioritization framework for supervisors - particularly those in low-income countries with resource and capacity constraints - that adopt a gradual approach when implementing the guidance.

The Indonesia economic quarterly reports on and synthesizes the past three months' key developments in Indonesia's economy. It places them in a longer-term and global context, and assesses the implications of these developments and other changes in policy for the outlook for Indonesia's economic and social welfare. Indonesia's economic growth has so far remained resilient to the weakness in the global economy. Amidst a still uncertain outlook, Indonesia will need to prepare itself for the potential consequences of China's slowdown and additional falls in commodity prices, and for the possibility of renewed turbulence in financial and commodity markets. Continuing to strengthen the policy framework to deal with shocks and building economic resilience through improvements in the quality of spending and in the regulatory environment will be key to maintaining, and improving further, Indonesia's strong recent growth performance. Progress towards these goals could be tested as the 2014 election year approaches. Indonesia's economy maintained its robust pace of growth in the second quarter of 2012, expanding by 6.4 percent year-on-year, up slightly from 6.3 percent in the first quarter. Buoyant private consumption continued to lift domestic demand, and investment spending also increased strongly. Despite the rapid pace of economic activity, consumer price inflation has remained moderate to date. Headline CPI inflation fell back to 4.3 percent year-on-year in September after edging up to 4.6 percent in August, when it was pulled higher temporarily by the Idul Fitri holidays. Core inflation has remained stable, just above 4 percent. Indonesia's current account moved further into deficit in the second quarter of 2012. Structurally, the trend towards current account deficits reflects consistently strong domestic investment relative to the level of domestic savings. The slowdown in exports over 2012, alongside generally strong import demand, has seen the large goods trade balance surpluses of recent years narrow and this, coupled with consistent net outflows in the income and services sub-accounts, moved the overall current account into a deficit of 3.1 percent of gross domestic product (GDP) in the second quarter of 2012.

After two years of fragile recovery from the global recession, as a group the six South East European countries (SEE6) Albania, Bosnia and Herzegovina (BIH), Kosovo, FYR Macedonia, Montenegro, and Serbia are experiencing a double-dip recession in 2012. Deteriorating external conditions, the impact of the severe winter on economic activity, and a continuing rise in unemployment early in the year took a toll on consumption, investments, and exports. In this fragile environment, Serbia, Albania, and Montenegro in particular will need to persevere in reducing fiscal deficits and bringing down debt, even as they must continue to improve the investment climate and reform labor markets and the public sector. In all SEE6 countries, public sector arrears pose special challenges to fiscal management and the private sector, and there are unfinished, structural reforms agendas. After two years of deep crisis, a sluggish recovery, rising unemployment and poverty, and a continuing recession even with the best efforts on fiscal consolidation and structural reforms, which must continue there is a danger that SEE6 countries are caught in a vicious circle that reinforces the cycle of long-term austerity, low if not negative growth, high debt, and even higher risks of social upheaval. To prevent this outcome, this report argues, SEE6 governments need to redouble their efforts to accelerate fiscal and structural reforms. These countries have largely exhausted their fiscal space and reduced public investment (except Kosovo, an outlier) to a fraction of what is needed to maintain public capital stock in critical infrastructure. Private investment is suppressed by the lack of productive, complementary public investments, slow credit recovery, and depressed domestic demand. External demand is minimal, and exports are not only too few, they are prevented from becoming an immediate, new engine of growth by infrastructure, finance, and other deficiencies. If such accelerated reforms materialize, external support well-coordinated and targeting the region as a whole, not just individual countries from the European Union (EU) and global international financial institutions (IFIs) could help ease the transition to a more sustained growth in medium term. In November 2012, the European Investment Bank, the European Bank for Reconstruction and Development, and the World Bank announced 30 billion in financing for Central and South East European countries over the next two years. In SEE6 countries, this timely initiative would likely be delivered via the Western Balkans Investment Framework (WBIF) and other IFI resources. Investment Promotion Agency (IPA) resources will also be important, especially in supporting institutional reform and rural development. By focusing on major infrastructure of regional significance (rail, highways, energy, and gas) and on jobs and small and medium enterprises, the efficiency of investments, growth, and employment could be substantially heightened. However, additional financing for growth and jobs could prove effective only if accompanied by intensified fiscal and structural reforms, especially in the areas of investment climate, labor markets, and governance.

Monitoring and evaluation (M&E) is an extremely complex, multidisciplinary and skill intensive endeavor. Government-wide M&E is even more so because it requires detailed knowledge across and within sectors, as well as of interactions among planning, budgeting, and implementation functions in the public sector. The situation is complicated even further when the machinery of government is decentralized, with powers and functions distributed across three spheres of government. This paper outlines the process of implementing a government-wide monitoring and evaluation (GWM&E) system in South Africa. The first section sketches the context that created the impetus for establishing such a system. This context is clearly shaping the evolution of the system and influencing its longer-term sustainability. The second section outlines the various stages of conceptualizing and implementing the GWM&E system, which is currently very much a 'work in progress.' The third section reviews international experiences for lessons learned, which may also be germane to the South African context, noting similarities and differences in approach. Some of the critical implementation factors relate to the role of political leadership and championing of M&E, incentives for promoting usage of M&E findings, dealing with information and data constraints, capacity building, "ownership" of the M&E system by line ministries and other agencies, and managing the challenges of change. The fourth section examines a range of challenges and difficulties encountered in South Africa. The final section reflects on lessons distilled from the South African experience to date.

Tradicionalmente solo las grandes empresas se han vinculado a las Bolsas de Valores para la negociación de sus acciones y demás títulos valores emitidos por ellas. Por consiguiente los requisitos para las cotizaciones y, en general, para las transacciones se han fijado según sus características. Sin embargo, existe una nueva realidad económica que impone la necesidad de abrirle espacio a las micro, pequeñas y medianas empresas (MIPYMES) en el mercado bursátil. Esta realidad esta compuesta por los siguientes hechos: • Este tamaño de empresas ha tomado una gran importancia en la estructura productiva del país. • Las pequeñas y medianas empresas industriales tienen gran potencial exportador. Tienen importantes requerimientos financieros que no se pueden satisfacer exclusivamente en el sistema bancario, ya sea por los costos, por los plazos o por los montos ofrecidos. • Poco a poco se rompe la resistencia al cambio así como al temor de los pequeños y medianos empresarios a dar a conocer su información con la sospecha de darles gabelas a la competencia. • El favorable tratamiento a las acciones. En estas condiciones, la Superintendencia de Valores ha planteado la conformación de un mercado paralelo al tradicional (o primer mercado) que se denomina "Segundo mercado" o "Mercado Balcón", al cual pueden acceder los títulos valores de micro, pequeñas y medianas empresas (MIPYMES) para inducirlas a una ampliación de la oferta de títulos, en beneficio del ahorro y la inversión. Las micro, pequeñas y medianas empresas (MIPYMES), son aquellas que se definen a partir del tamaño de su planta de personal y del tamaño de sus activos ( medidos en salarios mínimos vigentes S.M.L.V ), según la ley MIPYME ( LEY 590 de Julio 10 de 2000. Las MIPYMES representan el 96 % de las empresas existentes en el país, éstas contribuyen con el 63 % del empleo nacional, con el 25 % del PIB, con el 25 % de las exportaciones totales y con el 50 % de los salarios generados de la nación. Los problemas que en general enfrentan las MIPYMES son los siguientes: Acceso limitado al financiamiento y en condiciones desfavorables, deficiencias de administración de sus unidades productivas, complicados procesos de legalización y falta de liderazgo gremial, se presentan disgregados, lo cual ocasiona desinformación de las medidas del gobierno. Con la presente investigación y teniendo en cuenta el marco conceptual anterior, se trata de responder a las preguntas siguientes: 1- ¿ Cómo facilitar a las micro, pequeñas y medianas empresas (MIPYMES) el acceso al capital en condiciones favorables de manera que les permita desarrollar sus proyectos ? 2- ¿ Es el Mercado Balcón, el medio efectivo que ofrece el Mercado Público de Valores, como alternativa de financiamiento para las MIPYMES en Colombia ? 3- ¿ La actual legislación sobre la promoción y participación de las MIPYMES en el mercado de capitales del país, ofrece garantías de participación y desarrollo en ese mercado ? ; Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM); Corporación Universitaria Autónoma de Occidente ; INTRODUCCIÓN 19 1. MARCO DE REFERENCIA 23 1.1 ANTECEDENTES 23 1.2 DESCRIPCIÓN DEL PROBLEMA 25 1.3 FORMULACIÓN DEL PROBLEMA 26 1.4 JUSTIFICACIÓN DEL PROYECTO 26 1.5 OBJETIVOS DE LA INVESTIGACIÓN 26 1.5.1 Objetivo general 26 1.5.2 Objetivos específicos 27 1.6 MARCO METODOLÓGICO 27 1.6.1 Fuentes de información 27 1.7 MARCO CONCEPTUAL 27 1.7.1 El mercado público de valores 27 1.7.1.1 Ventajas que ofrece el mercado público de 27 valores. 28 1.7.1.2 Definición de inversión 29 1.7.1.2.1 Rentabilidad de la inversión 30 1.7.1.3 Superintendencia de valores 31 1.7.1.4 Registro nacional de valores e intermediarios 32 de la superintendencia de valores. 32 1.7.1.5 Títulos valores 33 1.7.1.5.1 Circulación de los títulos valores. 34 1.7.1.5.2 Clases de endosos 34 1.7.1.5.3 Títulos valores en los cuales se puede invertir 34 1.7.1.5.3.1 Acciones 36 1.7.1.5.3.1.1 Tipos de acciones 37 1.7.1.5.3.1.2 Características de la acción 38 1.7.1.5.3.1.3 Función económica de la acción 38 1.7.1.5.3.1.4 Ventajas que otorga la acción 39 1.7.1.5.4 Bonos y papeles comerciales 39 1.7.1.5.5 Sociedades y tipos de títulos que puede emitir 40 1.7.1.5.6 Pagos a seguir para emitir valores 40 1.7.1.5.7 Exigencias de la superintendencia de valores 40 para autorizar una oferta 40 1.7.1.5.8 Otras opciones de emisión de títulos valores los 41 inversionistas. 42 1.7.1.5.8.1 Inscripción anticipada 42 1.7.1.5.8.2 Segundo mercado 42 1.7.1.5.9 Requisitos especiales que las empresas 44 inversionistas deben cumplir para emitir títulos valores. 44 1.7.1.5.10 Inversionistas institucionales 46 46 1.7.1.5.10.1 Sociedades fiduciarias 46 1.7.1.5.10.2 Operaciones permitidas 47 1.7.1.5.10.3 Operaciones prohibidas 48 1.7.1.5.10.4 Operaciones prohibidas con los recursos del fondo común ordinario. 48 1.7.1.5.10.5 Posibles inversiones 1.7.1.5.10.6 Con recursos propios 1.7.1.5.10.7 Con recursos del fideicomiso 1.7.1.5.10.8 Con recursos del fondo común 1.7.1.5.10.9 De que pueden ser dueños 1.7.1.5.10.10 Posibles inversiones 49 1.7.1.5.10.11 Sociedades administradoras de fondos de pensiones y de cesantías 49 1.7.1.5.10.11.1 Operaciones permitidas 49 1.7.1.5.10.11.2 Operaciones prohibidas 50 1.7.1.5.10.11.3 Posibles inversiones 1.7.1.5.10.11.4 De que pueden ser dueños 1.7.1.5.10.12 Fondos mutuos de inversión 1.7.1.5.10.12.1 Características 1.7.1.5.10.12.2 Objetivos socio – económicos 51 1.7.1.6 Bolsas de valores 51 1.7.1.6.1 Orígenes de las bolsas de valores 52 1.7.1.6.2 Funcionamiento de la bolsa de valores 53 1.7.1.6.3 Características de las bolsas de valores 54 1.7.1.6.4 Funciones de la bolsa 55 1.7.1.6.5 Importancia de las bolsas en el desarrollo económico del país 55 1.7.1.6.6 Inicio de las bolsas de valores en Colombia 1.7.1.6.6.1 ¿Qué razones motivaron la integración de las bolsas de valores de Bogotá, Medellín y Occidente? 1.7.1.6.6.2 ¿Qué beneficios traerá la integración para Colombia, el mercado bursátil, los emisores y los inversionistas? 55 1.7.1.6.6.3 ¿Para qué sirve? 56 1.7.1.7 Compra y venta de títulos valores 56 1.7.1.8 Indicadores bursátiles 57 1.7.1.9 Indicadores para el mercado de renta fija 59 1.7.1.10 Indicadores económicos más utilizados 59 1.7.1.11 Escala de calificación de valores 59 1.7.1.11.1 Escala de certificación para títulos a largo y corto plazo. 60 1.7.2 Matriz para la formulación de estrategia. 62 1.8 MARCO TEÓRICO 64 1.8.1 Teoría Q de la inversión 65 1.8.2 Aspectos generales de la teoría de la valuación de las acciones. 65 1.8.2.1 Valuación de acciones comunes 65 1.8.2.1.1 Crecimiento nulo de los dividendos 67 1.8.2.1.2 Crecimiento constante de los dividendos 68 1.8.2.1.3 Valuación de las acciones con base en el valor futuro de la acción 68 1.8.3 Otras teorías generales sobre costo de emisión y el costo de capital. La estructura óptima de capital 70 1.9 MARCO JURÍDICO 71 1.9.1 Código de comercio 72 1.9.2 Decreto 400 de mayo 22 de 1995 73 1.9.3 Decreto 1200 de diciembre de 1995 75 1.9.4 Ley 590 de 2000 76 2. EXPERIENCIA DE SEGUNDOS MERCADOS EN EL MUNDO 78 2.1 FRANCIA 79 2.2 ESPAÑA 79 2.3 INGLATERRA 79 2.4 VENEZUELA 79 2.4.1 Importancia de la PYMI en el desarrollo económico y social 82 2.4.2 Componentes esenciales para incorporar las PYME al mercado de capitales 82 2.5 COSTA RICA 84 2.6 MÉXICO 85 2.6.1 Antecedentes 87 2.6.2 Definición 87 2.6.3 Propósito 88 2.6.4 Participantes 89 2.6.5 Requisitos de inscripción y mantenimiento 89 2.6.6 Procedimiento para la inscripción de acciones 90 2.6.7 Sistema de operación 90 2.6.8 Reglas básicas de operación 91 2.6.9 Suspensión de operaciones 91 2.6.10 Suspensión de registros 91 2.6.11 Índice de precios 92 2.6.11.1 Expresión matemática 92 2.6.12 Instituciones reguladoras 93 2.6.13 Marco jurídico y normativo 94 2.7 PORTUGAL 94 2.7.1 Requisitos para la emisión de títulos valores 94 2.7.2 Requisitos para la emisión de acciones 95 2.7.3 Requisitos para la emisión de bonos 95 3. CARACTERÍSTICAS PROPIAS DEL SEGUNDO MERCADO 96 3.1 GENERALIDADES 96 3.2 INVERSIONISTAS CALIFICADOS 96 3.3 TÍTULOS A NEGOCIAR 96 3.4 DOCUMENTOS REQUERIDOS PARA HACER PARTE DEL SEGUNDO MERCADO 97 3.5 EL PROSPECTO 98 3.6 PROCESO DE OFERTA PÚBLICA 101 3.6.1 Autorización de la oferta por parte de la superintendencia de valores. 101 3.6.2 Inicio del proceso promocional a través de comisionistas de bolsa, dirigido a potenciales inversionistas poniendo a disposición, información sobre la empresa emisora. 101 3.7 PROCESO DE OFERTA PRIVADA 102 3.8 PERIODICIDAD DE ENVIO DE INFORMACIÓN EN EL SEGUNDO MERCADO 103 3.9 CUADROS COMPARATIVOS ENTRE EL MERCADO PRINCIPAL Y EL SEGUNDO MERCADO 104 3.10 DERECHOS DE INSCRIPCIÓN Y LOS VALORES DE CUOTAS QUE DEBEN CANCELAR LOS EMISORES DEL SEGUNDO MERCADO. 104 3.10.1 Derechos de inscripción 104 3.10.2 Valor de las cuotas 104 3.10.2.1 Costos comparativos al emitir acciones y bonos 105 3.10.3 Periodo de liquidación 105 3.10.4 Derechos por reasignación de oferta pública 106 3.11 INTERMEDIARIOS FINANCIEROS 106 3.11.1 Sociedades comisionistas 107 3.11.1.1 Operaciones permitidas 108 3.11.1.2 Operaciones que pueden realizar por cuenta en el mercado primario. 108 3.11.1.3 Límites de estas operaciones 109 3.11.1.4 Operaciones que pueden realizar por cuenta en el mercado secundario 109 3.11.1.4.1 Segundo mercado 109 3.11.1.4.1.1 Inversionistas que participan 3.11.1.4.1.2 Títulos que pueden emitirse 109 3.11.1.4.2 Principios generales que se deben cumplir cuando se realizan estas operaciones 110 3.11.1.4.3 Límites que deben cumplir estas operaciones 110 3.11.1.5 Posibles inversiones 111 3.11.1.6 Inversiones prohibidas 111 3.11.2 Sociedades administradoras de inversión 112 3.11.2.1 Operaciones permitidas 112 3.11.2.2 Posibles inversiones 112 3.11.2.3 Límites de las administradoras de inversión 113 3.11.3 Sociedades fiduciarias 114 3.11.4 Banca de inversión 114 3.11.4.1 Actividades principales de la banca de inversión 115 4. EXPERIENCIA DEL SEGUNDO MERCADO EN SANTIAGO DE CALI 115 4.1 EXPERIENCIA DE LA BOLSA DE VALORES DE COLOMBIA 115 4.1.1 Motivos de la poca efectividad del segundo mercado en Santiago de Cali 115 4.1.1.1 Motivos Operativos 116 4.1.1.2 Motivos macroeconómicos 117 4.1.1.3 Motivos mesoeconómicos 117 4.1.1.4 Motivos macroeconómicos 119 4.1.1.5 Motivos del mercado 119 4.1.1.6 Motivos coyunturales Valle del Cauca 121 5. PLAN ESTRATÉGICO Y MERCADEO PARA LA REACTIVACIÓN DEL SEGUNDO MERCADO 121 5.1 CARACTERÍSTICAS GENERALES DEL ENTORNO DE LAS MIPYME EN SANTIAGO DE CALI 125 5.1.1 Entorno económico 126 5.1.1.1 Crecimiento económico 126 5.1.1.2 Comportamiento del sector industrial en el Valle del Cauca 127 5.1.1.3 Comportamiento del comercio en la ciudad de Cali, primer trimestre de 2000 128 5.1.1.4 Inversión neta de capitales en sociedades de Cali, enero – mayo de 2000 132 5.1.1.4.1 Índice de desempeño patrimonial de las sociedades de Cali 132 5.1.1.4.2 Concordatos 132 5.1.1.5 La inflación en Cali 133 5.1.1.6 Sector Externo 134 5.1.1.7 Política fiscal 135 5.1.2 Tamaño del mercado 140 5.1.3 Fuentes de financiación 141 5.1.3.1 Entidades (actores) públicas financieras 143 5.1.3.2 Entidades (actores) privadas financieras 143 5.1.3.3 Entidades (actores) públicas no financieras 149 5.1.3.4 Entidades (actores) privadas no financieras 151 5.1.3.5 La ley MIPYME y el entorno favorable a la creación 152 5.1.3.6 de nuevas empresas en Colombia. 160 5.1.3.7 Productividad 160 5.1.3.8 Tasas de Interés de colocación y captación 161 5.1.3.9 Entorno legal 161 5.1.4 Cultura bursátil 161 5.1.5 Entorno competitivo 161 5.1.5.1 Amenaza de nuevos entrantes 164 5.1.5.2 Poder del cliente 166 5.1.5.3 Amenazas de productos sustitutos 169 5.1.5.4 Poder de los proveedores 169 5.1.5.5 Rivalidad entre competidores 169 5.2 ANÁLISIS INTERNO 171 5.2.1 Definición de segundo mercado 171 5.2.2 Portafolio de servicios 173 5.2.3 Difusión 174 5.2.4 Dirección y manejo 174 5.2.5 Operación 174 5.2.6 Recursos 175 5.3 DIAGNÓSTICO 175 5.3.1 Oportunidades y amenazas 175 5.3.1.1 Amenazas 176 5.3.1.2 Oportunidades 176 5.3.1.3 Matriz de evaluación del factor externo (EFE) 176 5.3.2 Fortalezas y debilidades 177 5.3.2.1 Debilidades 177 5.3.2.2 Fortalezas 177 5.3.2.3 Matriz de evaluación del factor interno (EFI) 177 5.3.3 Matriz TOWN (DOFA) 177 5.4 PLAN ESTRATÉGICO Y DE MERCADO 178 5.4.1 Objetivo del plan estratégico y de mercado 179 5.4.1.1 Objetivo general 179 5.4.1.2 Objetivos específicos 179 5.4.2 Estrategias y programas 179 5.4.2.1 Disminución de costos 180 5.4.2.2 Fondo de garantías 182 5.4.2.3 Emisiones conjuntas 182 5.4.2.4 Vinculación de los inversionistas al segundo mercado. 182 5.4.2.4.1 Inversión del 1% de utilidades 182 5.4.2.4.2 Market makers 183 5.4.2.5 Captación de MYPIMES con apoyo de gremios y asociaciones. 183 5.4.2.5.1 Difusión y sensibilización de MIPYMES 184 5.4.2.5.2 Difusión y sensibilización a inversionistas institucionales 190 5.4.2.5.3 Capacitación y seguimiento a MIPYMES 196 5.4.3 Control 200 5.4.4 Cronograma de actividades 204 5.4.5 Caso práctico de apalancamiento (endeudamiento), con emisión de acciones o acudir a la consecución de pasivos. 207 CONCLUSIONES RECOMENDACIONES BIBLIOGRAFÍA ENTREVISTAS ANEXOS 208 ; Maestría ; Traditionally, only large companies have been linked to the Stock Exchanges to negotiate their shares and other securities issued by them. Consequently, the requirements for quotes and, in general, for transactions have been set according to their characteristics. However, there is a new economic reality that imposes the need to open space to micro, small and medium-sized enterprises (MIPYMES) in the stock market. This reality is composed of the following facts: • This size of companies has become very important in the country's productive structure. • Small and medium-sized industrial companies have great export potential. They have important financial requirements that cannot be satisfied exclusively in the banking system, either due to costs, terms or the amounts offered. • Little by little, the resistance to change is broken, as well as the fear of small and medium-sized entrepreneurs to disclose their information with the suspicion of giving away to the competition. • The favorable treatment of the shares. Under these conditions, the Superintendency of Securities has proposed the formation of a market parallel to the traditional (or first market) called "Second market" or "Balcón Market", which can be accessed by the securities of micro, small and medium-sized companies (MIPYMES) to induce them to expand the supply of securities, for the benefit of savings and investment. Micro, small and medium-sized enterprises (MIPYMES) are those that are defined based on the size of their staff and the size of their assets (measured in current minimum wages SMLV), according to the MIPYME law (LAW 590 of July 10 from 2000. MSMEs represent 96% of the existing companies in the country, they contribute 63% of national employment, 25% of GDP, 25% of total exports and 50% of wages generated from the nation. The problems faced by MSMEs in general are the following: Limited access to financing and under unfavorable conditions, deficiencies in the administration of their production units, complicated legalization processes and lack of union leadership, are disaggregated, which causes misinformation of the measures of the government. With the present investigation and taking into account the previous conceptual framework, the aim is to answer the following questions: 1- How to facilitate access to capital under favorable conditions for micro, small and medium-sized enterprises (MSMEs) so that they can develop their projects? 2- Is the Balcón Market, the effective means offered by the Public Securities Market, as a financing alternative for MIPYMES in Colombia? 3- Does the current legislation on the promotion and participation of MSMEs in the country's capital market offer guarantees of participation and development in that market?

Part one of an interview with Aldo and Anna Mazzaferro. Topics include: Family history. How his parents came to the United States from Italy. How his parents were married and moved to Leominster, MA. Aldo's education and memories from Leominster High School and Holy Cross. Aldo's work at the DuPont company. What life was like during World War II. Aldo's work history. How Aldo and Anna were married. In 1953, Aldo started his CPA business in Leominster and Fitchburg. The different clients he had. His work at Art Plastics and the plastics business in general. His sons joined the plastics business. ; 1 INTERVIEWER: October 4, 2011. This is Linda [Rosenwan], with the Center for Italian Culture at Fitchburg State College with Aldo and Anna Mazzaferro's house, 575 West Street in Leominster. So maybe we should begin, Aldo, if you could just give me some personal information regarding when you were born and where. SPEAKER 1: Very definitely. But I must say that October 4th, 1955, our second son was born. Today is his birthday. SPEAKER 2: That's right. SPEAKER 1: But getting back to me, I was born on November 11th, 1921, in Leominster, Massachusetts. And I went to the public schools here, graduated from Leominster High School 1939. And I went on to Holy Cross College after graduation from Leominster High School. INTERVIEWER: Okay. Were your parents both born in Leominster? SPEAKER 1: No, they were not. They were both born in Italy. My dad was born in the province of Abruzzo in a town called [Scafa]. And my mother was born in Abruzzo on the Adriatic Sea in a town called Pescara. And my dad was born in 1880, and my mother was born in 1882. INTERVIEWER: And when did your father come to this country? SPEAKER 1: My father came to this country, I would say, around 1900. In the winter, they lived in the Bronx within New York. [Unintelligible - 00:01:52] Ellis Island. He lived in the Bronx. INTERVIEWER: And your mother? SPEAKER 1: And my mother arrived, I would say, probably 1902, 1903. And she also went to live in the Bronx, New York with her sister. And her sister was married, had a family, and so my mother came over. And prior to my mother's coming over here in the Bronx, my dad and my mother conducted a romance by way of correspondence through letters. They didn't know each other. So he paid for -- my dad paid for my mother's passage here.2 SPEAKER 2: Your dad boarding at… SPEAKER 1: Yeah. My dad was a boarder. In those days it was frequent -- frequently, the immigrants would come over and they would go to places where they have some relatives or friends. And they were taken in as boarders. My dad was a boarder at my mother's sister's house or apartment in New York City. It is how my dad saw pictures of my mother and how it all started. SPEAKER 2: Sent for her to come from Italy to America. SPEAKER 1: Yeah, he paid for her passage. INTERVIEWER: So they followed. SPEAKER 1: So they courted, married a couple of days later. SPEAKER 2: It was all done that way, the parents would pick a mate for their son or their daughter. In fact, I think it was done on the next generation, too. I have a cousin that was married that way. She lived in Italy, and her husband lived in New York. And they sent for one another and met through pictures and photographs. INTERVIEWER: And did the female part of this arrangement, did she have much to say about it? SPEAKER 1: I'm sure she did. I'm sure that -- my mother is a very strong-willed person, and she did what -- she preferred -- to do it, apparently, it was a great attraction between my parents, and -- it wasn't pre-arranged. It was sustained correspondent with each other and having interests, and it materialized when they met it New York. INTERVIEWER: Interesting. So what brought them to Leominster? SPEAKER 1: Well, they had their children in New York. They're nine -- they had nine children. I believe -- let's see, four or five were born in the Bronx, New York. And my dad wound up in a basement apartment in New York and ran the apartment building for the landlord. And as part of the rent, he lives rent-free with his family. And it came about that my mother's brother, Horrace, came to Leominster and found that there was work here at the DuPont 3 Company. And so he sent news back to the Bronx, and so my dad came along. He got a job at the DuPont Company in Leominster, and he came here with all his family. He works here I don't know for how long a period of time. Let's say around 1950 or 1970, and he brought his family to New York and settled down in Leominster. And they settled at 53 [unintelligible - 00:06:00], and that particular house was owned by one of the mayors of Leominster, Mayor Burdett, and they rented that house. It was a cottage with three bedrooms upstairs and with some land [unintelligible - 00:06:17]. But they eventually purchased that property after a few years. INTERVIEWER: So what kind of work did he do at DuPont? SPEAKER 1: Well he was a -- not a laborer. A benchman, I would believe, at the DuPont Company. But it wasn't to his liking, so he left DuPont Company and went to work for the Leominster Fuel Company and became the delivery person, delivered coal. The Leominster Fuel Company, in those days had the [unintelligible - 00:07:00], and they were always delivered. Those were the days they really have oil burners. And so frankly, our homes, all the boilers used coal. INTERVIEWER: Did you ever go with him to make a delivery? SPEAKER 1: No, no. No, I never did. I was not quite three years old when my dad died. INTERVIEWER: That must have been tremendous hardship for your mother. So your family decided to stay in Leominster? SPEAKER 1: Oh, yes. Yeah. Yes. After my father died, the ninth child was born a couple of months later. Well, the family stayed in Leominster. My oldest brother was probably 16 or 17. He left high school and went to work to support the family. And then each brother, you know, took his turn and went to work and supported the family. And one of my brothers -- I have five brothers ahead 4 of me, and only one was able to complete high school. And I was the sixth brother, and I was able to complete high school. INTERVIEWER: And are you the only one that attended college? SPEAKER 1: Yes, I'm the only one who attended college. INTERVIEWER: Would you like to stop for a minute? SPEAKER 1: Okay. All right. Well as I grew up, without my dad, my mother always impressed upon me the fact that my dad long ago wanted his children to go to college, to get a good education. She was quite disappointed that it wasn't happening. So I guess I was determined to do that, go to college, so that my mother would be happy. So when I was in junior high school I took the classical course, and in most days, junior high school went through the ninth grade. So when I was in ninth grade I questioned whether or not I had the financial resources to go to college. So I determined that there was no way that I could go to college. We don't have enough funds. So when I went to Leominster high school in my sophomore year, I switched from the classical course to college course to the commercial course. And then during my sophomore year at Leominster high school, I trained my mind [unintelligible - 00:10:07] determination that I wanted to go to college bad enough that I would find some way to go. And so my junior/senior year, I switched back to the college course in Leominster High School, and in those days it was a three-year high school, you had to have a minimum of 40 credits a year to pass. We have to have 120 credits to graduate, but because of the fact that I had to cram two college preparation years in my junior/senior year, I was required to take extra courses. So I had hardly any -- I don't think I had any study periods in my senior year. I recall only having one [unintelligible - 00:10:54] period and some semester not having [unintelligible - 00:10:59]. So as a result of that I took a great deal of courses at 5 Leominster High School. I had one year of business courses in commercial, which helped me later on in college. In my junior/senior year I had the college courses. So I was graduated with 151 credits from Leominster High School. We were only required 120, 125. The average credits that they got when we graduate, probably 125. I had 151, and a lot of course were behind me. INTERVIEWER: Did you have to work while you were in high school? SPEAKER 1: Yes, while I was in junior high school, actually junior high school, I got a job working at a Chinese laundry. I learned how to man load shirts, [unintelligible - 00:11:51] the collar, the collar, [unintelligible - 00:11:54] the cuffs, and to iron the shirts. So I learned -- I did very well. I worked at various Chinese laundries in Leominster, Fitchburg on Saturdays, especially. Also my high school years, I started to work at a Chinese laundry while I was in junior high school. And before the Chinese laundry career, I shined shoes at Monument Square in Leominster on Fridays and Saturdays. In most days everyone went downtown. On Saturdays, it's quite crowded downtown, and I did okay shining shoes. INTERVIEWER: I bet you could bank quite a bit of money doing that. SPEAKER 1: I don't have a bank. INTERVIEWER: You don't have a bank. You gave it to your mother? SPEAKER 1: There wasn't enough to go around. I can remember one time when I was in junior high school, I believe, it was during the Depression days in 1930s, and corduroy breeches were very popular in those days. They are the corduroy trousers that went down just below your knees, just below your knees, they had a little [unintelligible - 00:13:12], and they would walk, and they would try to meet that. Everybody at school would have a pair of corduroy breeches. I never had any. INTERVIEWER: Did you wish you did?6 SPEAKER 1: Well, I pushed my older brother Tony, who worked at the DuPont Company—he used to work four to twelve—and you know, just begged him to buy me a pair. He did finally buy me a pair, but I don't know what it costs. It costs less than a dollar, I think, in those days. And I was very proud that I had it. INTERVIEWER: And when you went to Holy Cross, what year was that? SPEAKER 1: Well, in 1939, I graduated -- I graduated in Leominster High School in 1939 in June. I went to Holy Cross in September 1943. And I was admitted to Holy Cross on a scholarship work program, and I was required to pay about one-third of the tuition. In those days, tuition was $280, and I was required to pay $100 of that tuition. And the balance I was required to earn at a rate of approximately 35 cents an hour credit working in the college library. INTERVIEWER: Thirty five cents… SPEAKER 1: … an hour would be credited towards… INTERVIEWER: To the $100 or the $200? SPEAKER 1: … to the 180 balance. That's what I was required to do. So I worked in my freshman year at the college library, normally evenings from about six o'clock to nine o'clock five and six evenings a week, unless there was some college event that I couldn't do it. Basically I did that all during my freshmen year, I worked at the college library, even some Saturdays and Sundays. In those days we went to college, we had classes on Saturday mornings until noontime. So, college was six days a week way back in the '30s and '40s. INTERVIEWER: So you lived on campus then? SPEAKER 1: No, I did not. I lived -- in my freshman year, I lived in Worcester with my older sister. She was married and lived in Worcester, and I stayed with her and I took the bus. And in my freshman year, I commuted, went to Holy Cross. And I lived with her in my 7 freshman year. And then from my sophomore year on, I stayed in Leominster. I lived in Leominster and I commuted daily to Holy Cross. In those days class started at nine o'clock in the morning and ran until 3:30. And then lab would be in the afternoon until 5:30, six o'clock. INTERVIEWER: And then you worked. SPEAKER 1: [Unintelligible - 00:16:20]? INTERVIEWER: No, that's fine. We're going to edit this anyway. Then you would work until nine o'clock at night? SPEAKER 1: No. Well, yes, in the college library. So I'd get home at -- in my freshman year I'd probably get back at 9:30, 10:00 to my sister's house. That was during my freshmen year. That was quite a program. I was gone all the time. But I didn't look upon it -- I shifted to something that had to be done. So I might say that during my freshman year, that the library, right after the football season was over, that one of the -- my good friend in class that played in the college band showed up at the library to work and told me that he was on the same scholarship work program that I was on, and that he had to play in the band and then work at the library to earn his credits. And he told me that next year, because he was in the college band, it would not be necessary for him to work at the library, just be in the college band he would get enough credits so he wouldn't have to work in the library. Just play in the college band. So I didn't know one note of music, and I heard about this. So in those days, they have the WTA Recreation Week, and they [unintelligible - 00:18:04]. They were offering the class on how to play musical instrument at the [unintelligible - 00:18:10] in Worcester. And this was during my freshman year. And so there was a Professor Castana who taught music, and I decided that I wanted to learn to play the cornet so that I could fit into the college 8 band in my sophomore year. So I approached him and told him that I had not -- I'm not looking to be a music major. I just wanna know enough music so that I could play well enough to play the Star-Spangled Banner and probably the football march and some things like that, and national anthem so that I could be admitted into the college band. So I took music lessons in the spring of my freshman year from about, I'd say from January to May in Worcester while I lived with my sister. So I used to go down there, so I'm busy weekends, and whenever I could fit it in, sometimes during the afternoon. INTERVIEWER: So was that a success? Did you get admitted? SPEAKER 1: Yes, yes. I came back after my freshman year was over in the summer of 1940, there was a Professor [unintelligible - 00:19:40] that taught music, and I finished my musical education with him. And I got to play the cornet, and I told him the same thing. I just want him to know that I wasn't gonna do a major in music. So then in my freshmen year, I was admitted to the college band. And I played the second cornet, second trumpet. So I knew all the [unintelligible - 00:20:18]. In a couple of weeks, I learned all the songs that have to be played, probably 12 or 15. And I played in the second cornet. I didn't require the music sheet on the lyre. And so because I could play by heart all the numbers, they placed me outside of the band. When you go on the outside so that you could [unintelligible - 00:20:49] the person on the outside will all be going [unintelligible - 00:20:54]. So that's where I wound up with the college band. INTERVIEWER: Do you still play? SPEAKER 1: No, I don't. I quitted after my junior year, and I haven't played. I'm not a musician.9 SPEAKER 2: Wasn't there a story where you started to usher because you found you got more credits being in the usher than you were playing in a band? SPEAKER 1: Well, what happened was half of my freshmen year, I was able to find a job with the DuPont Company. And in the summer after my freshman year, I worked on the 12-8 shift at the DuPont Company. Then when school started in the fall in my sophomore year, I was able to continue working at the DuPont Company. In order to keep my job with them, I was required to work 82 hours a week, and I would be considered a permanent employee. And if I put in 32 hours or more per week, I would be entitled to a two-week vacation period and paid holidays. So that's what I did in my sophomore, junior, and senior years. While I was at Holy Cross I had a full-time job working at the DuPont Company. My normal schedule after the football season was over, that I had to work on a Saturday from 4-12. I would get 8 hours. Then on a Sunday I would go to mass at 7 o'clock, and I would be at the DuPont Company from 8 o'clock, and I would work 8-4. So on a Saturday and Sunday, I got 16 hours, and I have the rest of the week to get in another 16 or more hours. So the way the classes were at Holy Cross on a Tuesday and a Thursday, the class schedule was light. I would have I think two classes at night on Tuesdays and Thursdays. I was normally to class about 1:30 to two o'clock and it was all done class on two o'clock. So I would get back to Leominster at three o'clock, four o'clock, usually five or six o'clock, and I would work from 6-9 and 7-10, something like that. Or even sometimes 7-12. And once in a while, if I was up to it, I would even go beyond 12 o'clock at work. If I have an exam the next day I would probably work until… INTERVIEWER: I guess I'm wondering when did you study? I think…10 SPEAKER 1: Going to see if I'm coming too strong enough [unintelligible - 00:24:06]. Ah, let's see. When did I study? I didn't study as much as I would've wanted to. In order to make up for the fact that I couldn't study as much as I wanted to, when I was in class I really focused on what the professor was talking about. I would not permit myself to be distracted by what was going on in class. I just focused right on that professor and tried to understand what they were trying to put across. And I think that saved me a lot of -- I did my homework, less consuming. But I studied between classes, and I actually used to study on the job at the DuPont Company. I had a job running an automatic comb-polishing machine, was about 40 or 50 feet long. And I sat at the beginning of the machine, and said comb fell into a belt. And after a while you'll get so used to it you didn't have to look at what you're doing. You just grab a handful of combs, and one by one you would put those combs down the belt about a half an inch a pack. And you didn't have to watch it too carefully. So I used to set up the machine with a book in my lap if I have some studying to do. So I used to get some studying done that way. And the… INTERVIEWER: And what was your major? SPEAKER 1: My major at Holy Cross was economics, Bachelor of Science in Economics. But that's when I enrolled there. But then in the senior year, they changed the name of the degree to Business Administration. Actually, my concentration there was in Economics, actually. I took the accounting -- the accounting program was required for the first two years. And then after the junior and senior year, then you decide whether or not to continue on the accounting later on. I decided to get into economics, applied economics. INTERVIEWER: What was it like going to school during the war?11 SPEAKER 1: Well, it wasn't really until December 7, 1941, the day of Pearl Harbor, that I think that the [unintelligible - 00:26:52] heavily involved in. There was a -- I don't exactly know when. I don't think that the interest in following through -- there would seem to be a "Let's get it over with. I'm gonna be in the service anyway. Let's get education over with," and everything was accelerated. After 1942, they dispensed with the summer vacation from college. Normally you would get out of college in first week of June. We went right through, started our senior year in June of 1942. We finished our -- we finished our junior year in May of 1942. It took just a few weeks, two days before we started the senior year, went right through the summer. [Unintelligible - 00:28:17] a week down to July 4th, holiday. It was like that right through the summer of 1942. And with the accelerated program, we graduated February 1943 where we should have been graduated in June of 1943. And there was gas rationing in those days, and travel was my priority. So it was difficult to travel. INTERVIEWER: At that time you were traveling back and forth at Leominster? SPEAKER 1: I was commuting back and forth. INTERVIEWER: So how did you do that? SPEAKER 1: We have enough gas. It was rationed. We have enough gas to go to school. But because of the travel restriction, they cancelled our graduation exercises. So we had no graduation exercises in 1943, and we received our diplomas through the mail. I might say that about traveling, it wasn't commuting back and forth that was the worst to Holy Cross from Leominster that my brother and myself, in my sophomore year, bought a 1929 Packard that I could use and was gonna use later on in this business. So when I went back to school in September of my sophomore year with the Packard, I had about four, five other students as passengers, and that helped to defer the cost of traveling gas and oil back and forth to Worcester. 12 And this Packard broke down after the second week that I was in college. I had to tow it back to Leominster. So over the weekend there was an old 1934 Packard that was for sale, so my brother purchased this 1934 Packard for $50. And I used that, but it consumed a lot of gasoline. I probably got six or seven or eight miles a gallon at the most. But gasoline was not expensive in those days. You can probably get -- I think we were paying 12 to 15 cents a gallon of gasoline in 1940, 1941. So… INTERVIEWER: So it sounds as if your brothers gave out a lot for the family. SPEAKER 1: Well, I always -- they helped, definitely. When I need a couple of dollars here and there, and usually they would let me have a dollar or two if I need it. But then as I worked at the DuPont Company and got in, got my time, especially in the summer, I worked full time. I worked 40 hours a week and probably even 48 or 50. I put in plenty of time. And then the two-week vacation period that I got paid for, I actually worked at the DuPont Company, so I developed this sufficient income stream to carry, to support myself. INTERVIEWER: Did anyone else go to college from your family? SPEAKER 1: No. Not anyone. No. INTERVIEWER: Again, going back to the war. Did you have to serve? SPEAKER 1: No, I didn't. I was eligible for limited service. So I wasn't eligible for the draft until I was graduated from college. In those days I believe all the college students were permitted to finish their college career as long as they are in good standing. And so I was eligible for limited service. First time that the draft board called upon me, I went down and they didn't need anyone for limited service. And at that time I was working for Peat Marwick Mitchell Company. This was in 1943, and I was involved in auditing in the British West Indies, Central America, Northern South America. There was security involved in auditing, and I was doing it, and it 13 involved auditing for the United States government. And so I never got into the service. INTERVIEWER: Is this company in Leominster? SPEAKER 1: No. Peat Marwick Mitchell is one of the big three accounting firms in those days. There were Peat Marwick Mitchell, Price Waterhouse, [unintelligible - 00:33:52], companies like that. And today, Peat Marwick Mitchell is now known as KPGM, one of the big, large international firms. So I went to work for them in November of 1943. INTERVIEWER: And where was it located? SPEAKER 1: They have -- well, they have had their worldwide headquarters in London, in Scotland, in New York, throughout the United States, and I worked at the Boston office in the Worcester branch. I had assignments. I went to work with them in November. We audited companies like Melville Shoe, which became the Thom McAn shoe stores, the General Electric company, American Optical, [unintelligible - 00:34:50] Electronics… INTERVIEWER: Did you stay in Leominster and commute? SPEAKER 1: Yes. I probably -- much of the time I was with Peat Marwick Mitchell, I was traveling. And for instance, we would go to Southbridge and audit the books of American Optical; that would take about six weeks, seven weeks. And we would stay at the Columbia Hotel in Southbridge, Massachusetts all week long. So I would come home on weekends. It was like that. We audited the General Electric Company in Pittsville, Massachusetts with the same arrangement. We would stay at the hotel. There was lot of traveling away from -- in fact, in 1944, I was on assignment to Central America from Labor Day to Thanksgiving. So I was away and conducting audits for the United States Commercial Company, that supplies corporation that was part of the security that Peat Marwick Mitchell was involved in during the war. There was also, 14 in Panama, there was a tropical radio and telegraph company, which was very important for communication. That was part of the auditing contract that Peat Marwick Mitchell had with the United States government. But the big account that was prevalent throughout those areas was United Food Company, which was like a government unto itself. It had schools. It supported the schools. It had its own schools, education, railroads throughout the Central America. INTERVIEWER: And how long did you go with that company? SPEAKER 1: I was with Peat Marwick Mitchell until November of 1947. No, December, end of December, until January 1948 I was with Peat Marwick Mitchell. I left Peat Marwick Mitchell and went to work with Baker and Baker. It was another CPA firm out of [Worcester in] New York. And one of the assignments I had with them, the longest, was down in New York City working at 90 Broad Street, and we conducted investigation of the New York Waterworks. Investigation involves contracts and transactions that dated back to the early 1900s when they installed the water supply from New York City in Long Island. So I worked in the fraud investigation regarding a case that was going on. And as I lived in New York from -- I think I was assigned there from the end of July of 1948, July or August of 1948, and I was there until November of '48. We stayed at the St. George Hotel or St. Charles Hotel in Long Island. I would take the subway to Wall Street to 90 Broad Street where we were working on the audit. INTERVIEWER: Okay, and how long were you with that company? SPEAKER 1: I was with them I would say until 1950. And then I went to work -- one of the accounts that Baker and Baker had was the Dollar Greeting Cards, which was located in Fitchburg, Massachusetts. And I had conducted the audit of Dollar Greeting Cards for Baker and Baker Company. And then you recall there was a recession in 15 1949, and so Baker and Baker had to let much of its staff go. And I was one of the staff that was let go in probably August or September of 1949. SPEAKER 2: In May. SPEAKER 1: Well, they told me they were gonna let me go in May, but then after our wedding we came back, and they told me they're gonna keep me on. So that's an interesting story if you want me to tell you a little bit about it. INTERVIEWER: I was just about to ask you when you got married. 1949? SPEAKER 2: May 1949. He was unemployed. SPEAKER 1: Well, let me tell you the story is that that we had our wedding date set up May 7, 1949. It was two or three weeks before the wedding, Baker and Baker notified me that they're gonna have to let me go during my vacation, because of the, you know, the recession. So I didn't mention that to her. And so we were married. I think we were honeymooning in Canada, we went up to Canada, I said, well this is a safe place to tell her. So I let her know that she had married an unemployed person but not to worry about it because things will work out okay. And so we got back, and Baker and Baker kept me on for another two months, and I land the Dollar Greeting Cards audit after that. And then when they had to leave Baker and Baker, and so they came about the Dollar Greeting Card. Dollar Greeting Card needed assistants in the accounting department, the special projects that they had going on. So I was hired. So I left them. I was hired by Dollar Greeting cards. So I left Baker and Baker on a Friday, and on Monday I showed up at the Dollar Greeting Cards Company. And I worked there on special projects, and probably important projects. I worked onwards on assignments that determine the tax advantages and disadvantages of transferring Dollar Greeting Cards from being a Massachusetts corporation to a 16 North Hampshire corporation. That was one of the assignments I had, and I made the recommendation that it would be a great tax saving by relocating to North Hampshire. And so shortly after I made that report, I left. I left Dollar Greeting cards. I passed the CPA exam in November of 1949. Yes. And so it's 1950, I left Dollar Greeting Cards, and I went to work for Colorado Fuel and Iron Corporation that had the large steel manufacturing company. They had headquarters in Buffalo, Colorado. The eastern division was headquarters and offices at 585 Madison Avenue, and I worked out of the New York office. And my position with them is -- I was named assistant to the chief plant department for the Eastern division for of Colorado Fuel and Iron. And it had various divisions, it had the [unintelligible - 00:44:06] Iron and Steel division, which was located in New England. And while I was an auditor with Peat Marwick Mitchell, I ran -- Colorado Fuel was one of the clients of Peat Marwick Mitchell. So I ran the audit of the [unintelligible - 00:44:24] Steel division in Worcester, Clinton, and [unintelligible - 00:44:27], Massachusetts. And over this part there was a problem. There was an accounting problem regarding the inventory problem, which was quite serious, that I was involved in. And as a result of the examinations that I had to make, I got to meet the treasurer of the Colorado Fuel, [unintelligible - 00:44:54] from New York City during the course of this audit, which sort of took place in 1947, when I was auditing the [unintelligible - 00:45:07] Steel division. So we finally settled our differences and we certified the statements for Colorado Fuel and Iron. And at the end of the meetings that we had, the treasurer mentioned to me that most fellas in public accounting where I was, after four, five years, they tire up. They wanna find a place where they can have a career with a great company. And he said to me, think of Colorado Fuel 17 and Iron when you're ready to leave public accounting. So when I was with Dollar Greeting Cards in 1949 or 1950, I didn't see that I had a future there. And so I contacted the treasurer of Colorado Fuel and Iron and went down for an interview in New York City. I was hired immediately, and I went to work for them in 1950. INTERVIEWER: And after that you stayed behind? SPEAKER 2: We stayed in Leominster. SPEAKER 1: Yeah, they lived in Leominster. SPEAKER 2: He'd worked -- he'd come home weekends. And then we'll drive him to the Union Station in Worcester for him to take the midnight train, the sleeper, to go to work maybe Chicago, Buffalo, New York… SPEAKER 1: Not only Buffalo. They had a big -- so in Buffalo, in [unintelligible - 00:46:32] New York, the big steel facility requires [unintelligible - 00:46:36] Steel division. SPEAKER 2: It was -- Sunday night I would drive to Worcester for the midnight train. SPEAKER 1: So I would spend time away. INTERVIEWER: And how long did you stay with them? SPEAKER 1: I was with them -- I can remember the day exactly, April Fools' Day, April 1, 1953, I left. And I was traveling all the time. I was hardly ever home. Closest I ever worked was Clinton. They had a [unintelligible - 00:47:10] Steel, and then in Worcester. But they were all very small in comparison to the other facilities that Colorado Fuel had. In Buffalo there are probably 5,000 or 6,000 workers. And then in Trenton, New Jersey, we acquired the [unintelligible - 00:47:32] division, probably 5,000 or 6,000 people at work there. The nearest facility [unintelligible - 00:47:39] Pennsylvania, New Jersey, Claymont, Delaware, all these facilities that they have, I worked there. INTERVIEWER: So what happened in 1953?18 SPEAKER 1: Well, in 1953, I decided to come back to Leominster and establish my CPA practice. I always wanted to have a CPA practice to public accounting. And I had, I was certified. And so while I was head, all these employments out of town, I developed an accounting practice in Leominster and Fitchburg. And so what was important in getting back to Leominster is I had one account. And I had many, but one of the accounts I had was the Art Plastics Company, and it was a very successful plastics company. And it did the greatest volume of [unintelligible - 00:48:48] would be SS Kresge Company, which today is known as the Kmart. And so in 1951 or 1952, they started to lose their bargain in business that was the Kresge Company, and it got to the point where in late 1952, early 1953, they lost money, the volume of their business with the Kresge Company. And so they became insolvent. And they had -- they owed money to the major chemical manufacturer in those days. Dall Chemical, [unintelligible - 00:49:43] and so, the credit offices of these companies were located in the New York City area. And while I was with Colorado Fuel working down in Madison Avenue in New York, I contacted the credit department of the Dall Chemical, [unintelligible - 00:50:00], and was able to affect the settlement for Art Plastics of 10 to 25 cents on a dollar, they would settle for it, because I was able to show that without some compromise, the Art Plastics was gonna go out of business. They were insolvent, they were heading to bankruptcy. And so as a result of these accommodations I made for the Art Plastics Company, it was able to exist in not just to keep it running from day to day. And they had one account, a custom molding account, which was enough to keep it alive. So they wanted me to see what I could do, improve the facility and join the company and make it viable. And so I accepted an arrangement after great discussion to go to work with them on April 1 and leave Colorado Fuel. And19 my salary was $100 a week, which was less than what I was earning with Colorado Fuel. But the arrangement that I would stay long enough to either make a [unintelligible - 00:51:36] company or not, and that I would put all the time that I could, especially every morning, but then afternoons I would be free if I had to take care of my accounting practice, which I was going to build up. So I used Art Plastics as a steppingstone to develop my public accounting practice. And so I joined Art Plastics, and simultaneously, when I joined, there were three main stockholders, three partners at Art Plastics. One of them left abruptly as I joined the company, and so I joined the company and made all kinds of drastic cuts, like slashed salaries of the remaining partners, almost 50 percent, and you know, in [unintelligible - 00:52:40] warehouse based at [unintelligible - 00:52:44]. I made a lot of cost-cutting procedures. INTERVIEWER: So you were a very popular guy? SPEAKER 1: I was not popular at all. And so at the end of the first month, six to seven weeks that I was there, the second partner approached and said I can't get along on my meager income now, and what I'd like to do is leave the company but I'd like to take the machine shop as a swap for my share in the company. So I okayed it, and I checked with the other partner, the other remaining partner, who was elderly and who was not that active in the plastics business but who was the investment person, the person who put up the fund at the start the company. And so it was fine with him. So at the end of two months, I was -- I found myself there with just one partner. Then he suddenly developed an ulcer and was hospitalized, and he was told to stay away from the plastics company. So in the short space of time, I found myself running the plastic company that I didn't completely understand, and I was learning. And so that went on. I managed to keep running, and…20 INTERVIEWER: Doing all of these for a $100 a week? SPEAKER 1: Well, yes. But I had my accounting practice, and I was earning about as much in my accounting practice on a part-time basis, because I was working for the Art Plastics Company. And the practice was that I would hold my payroll checks for perhaps two or three weeks, whatever I had to, when there was not enough money in Art Plastics to cover the payroll checks. So we managed to stay alive and keep Art Plastics running. We get down to the point where we -- normally, Art Plastics had 60, 70 employees when it was running. But they kept down to the point where we only had five or six employees when there was hardly any business. But we managed to hang in there by cost cutting and settling with creditors in giving us time to pay. We managed to stay alive. And I stayed in the plastics business longer than what I had planned. So I was busy running the plastics business, running my public accounting practice, time goes by. And the plastics business was seasonal, and it worked out that public accounting in those days was seasonal. You were busy from about December until about April, and that's about when the plastics company was not that busy. So I was able to balance the two and keep the plastics company alive. And after three, four, five years, we developed new customers in the plastics, with Art Plastics. I made a decision around 1960 after just being so busy running the plastics business during the day and running my public accounting practice in the evening and weekends, and taking time away from the plastics business during the week, I made the decision to stay in the plastics business. And I thought that I might take my public accounting practice alive by bringing somebody in. And so it was 1959 or 1958, one of those years, that I brought in one of my colleagues that I work with at Peat Marwick Mitchell Company, 21 and he came to work with me, and I was passing on -- he handled all the public accounts. We set up an office, and the [unintelligible - 00:57:31] building downtown, I remember. And that went on for a year or a year and a half, maybe two years, and he abruptly passed away. And right in the middle of taxing, probably February or March. And so all these taxes returns we were working on, I had to get extensions. And so that's when I decided that I wouldn't be able to keep up my public accounting practice, so that's when I divested my accounts and made arrangements for other CPAs in the area to take over some of my accounts. But I wasn't able to give them all up. I kept a couple. Not that I wanted to, but because they wanted to. There was some loyalty there. And so I [unintelligible - 00:58:39] that I kept maybe for another 10, 15 years. It was not a very… INTERVIEWER: What made you stay in the Art Plastics Company? Sounds like an incredible amount of work. SPEAKER 1: Well, there is a lot of work. But we have 30, 40, 50 people there. You can delegate a lot. I think in public accounting, it was -- for me, it was more time-consuming to get the work done, whereas in manufacturing you delegate and you're more of a manager and you have time. And I can recall a conversation that I had with two of my colleagues when I was working in Southbridge at the American Optical, and we were talking one evening, the three of us, as to what we wanted to after we get out of public accounting. And one of them said, "Well, I wanna become the comptroller of a large gold chip firm." And he did, he became comptroller and assistant treasurer of the Pittston Company. And the other fellow wanted to stay in public accounting and be partner, and he did that. He stayed. I remember saying I wanna be a manufacturer. I just think that the opportunity in manufacturing, owning your own business. 22 I remember saying that maybe if turned up that I had that opportunity to work on… INTERVIEWER: So tell me, what did Art Plastics make? SPEAKER 1: Art Plastics had their line of horticultural flower pot ornaments, that was its line. It made these trellises for flower pots, it made the ornaments that you would stick in the flower pots, like the flamingoes, [unintelligible - 01:00:45] watering flowers, those palm trees, a frog on the… INTERVIEWER: And this was very popular in the '60s? SPEAKER 1: Well, it was -- yes, it had a line. But we developed a -- we got into custom molding products. Custom molding is more than we did, the proprietary line. So we became custom molders, basically. That's when we would -- people would come to us with molds of their own, and we would mold their products. And we used to -- one of our big accounts had a big line of toy dolls. And you know that Barbie doll that was popular? We used to mold that. We used to mold it in acetate. That was our main account. We mold it for the company that put the [unintelligible - 01:01:45] sprayed the eyes on it, the eye lashes. INTERVIEWER: The Barbie doll, the Mattel Company? SPEAKER 1: No, they were competitors. Got to be competitors. This was back in the late 1950s, '60s. Yeah. So we were custom molders. We used to mold for other big companies, like [unintelligible - 01:02:16]. They manufacture beautiful knives, forks, and spoons, and we used to mold those. And companies like Tupperware. Have you heard of Tupperware? They would get extremely busy, and they would approach molders like Art Plastics. And we would mold their basins and dish bowls and things like that on a seasonal basis. SPEAKER 2: Clothes hangers?23 SPEAKER 1: Clothes hangers. That was one big account. But we made all their hangers that they made—not for the consumer market but for the display of hangers in stores and department stores like Saks, and… [Lauren] Taylor, companies like that. They have a very expensive line of plastic hangers, and we were their molders. So we were -- we get a great deal of custom molding with Art Plastics. SPEAKER 2: May I insert a story? We were on the trip, and Aldo's looking at the store with fur coats in the windows. And our friends said, "Oh Aldo's looking to buy you a fur coat." I says, "No, he wants to see if that was one of the hangers molded at Art Plastics." SPEAKER 1: I want to see it that was one of our hangers. SPEAKER 2: So I had many stories little stories like that. He'd be looking to see if it was done at Art Plastics Company or some other place. INTERVIEWER: Now, what would happen if you saw that it was done at another? SPEAKER 1: Well, if it was a competitor's, I would report it back to our customers; say you got to get your salesman out there. So that's what Art Plastics did. And so it leads to some [unintelligible - 01:04:15]. INTERVIEWER: But I'm not sure I fully understand Art Plastics, meaning after the partners that you had suddenly died. You decided no longer… SPEAKER 1: No, he developed an ulcer, and he was advised not to return to work for a few months. INTERVIEWER: Oh yeah, not him, but during your public accounting. SPEAKER 1: Oh. Well, I liquidated my company, public accounting practice, and couple of other CPAs in the area took the accounts over. INTERVIEWER: And then you continued with… SPEAKER 1: Then I stayed in plastics; I stayed in plastics and developed Art Plastics. And in 1960, we were paying rent in what they called in those days the old DuPont building. So we had an opportunity to buy a piece of real estate owned by the Borden Chemical Company at 75 Water Street in Leominster. And so we acquired that 24 property I believe in 1960. And so Art Plastics relocated and moved up to this new facility, and that's when I made all my decision that I'm gonna stay in the plastics business, liquidate my public accounting. It was around 1960 when we purchased the Art Plastics building on the Walter Street from the Borden Chemical Company. INTERVIEWER: Now 40 years later, are you in the same location? SPEAKER 1: Comes about it, I'm going back. That's a long circle around. So… SPEAKER 2: That building has always been Art Plastics and Cardinal Co. Then we have another building. But now, Art Plastics is back on 75 Water Street. Lots of stories in between. SPEAKER 1: Lots of stories in between. INTERVIEWER: Do you want to say all of them? Because we're up to 1960, so we might as well go on. SPEAKER 1: All right. So in the '60s we developed Art Plastics in custom molding. And I decided that, that we had culturally floral [unintelligible - 01:06:55] that we had, the trellises and things like that, were not developing the way I thought. And I was looking for a proprietary line to get into. So we had a lot of experience molding combs for the DuPont Company, the Tupperware Company, hangers and things like that, and also standard home products that we used to custom mold. So we had a background in molding combs. And Leominster is known as the combing city that it always had. They manufacture combs here. So I had an opportunity to employ somebody who was knowledgeable in comb business, so I decided to be in the comb business, and that was in 1969, that the first thing we did was we had a pocket comb mold built. That caught, let's say, 36-cavity 5-inch pocket comb, heavy-duty pocket comb that cost us $7,200. That was our first mold to go into the comb business. INTERVIEWER: And that cost you $7,200 for the mold?25 SPEAKER 1: For that one mold to introduce us. That was a very pro -- and that was a man's pocket comb. Every man has a pocket comb, a black pocket comb in those days, and it was a bread and butter entry to the business. So we started Cardinal Comb in 1969. Around 1970, there was a -- another company in Leominster that was involved in the comb business, and they have been in business two or three or four years. And they were faltering, and they were going out of business. So we acquired their machinery, molds and machinery. INTERVIEWER: Which business was that? Which company? What was the name of it? Can you remember? SPEAKER 1: They call it Rafaeli Plastics. Cardinal Comb acquired all the assets, the machinery, the equipment, the inventory, and the customer list… whom I was already doing business with. But that doesn't matter. So that was in 1999, we acquire Rafaeli Plastics. And after that, going through our line. INTERVIEWER: Were you the only company in the area producing combs? SPEAKER 1: No, we were not. We were a late entry. Probably a half a dozen other people making combs in Leominster, or at least I knew about. So we entered the comb business. INTERVIEWER: And what gave you the courage for that? SPEAKER 1: Well, I hired this person who had experience in sales in combs. I was -- I felt he could do well in the comb business. So during the '70s and '80s, our comb business grew. We had a machine shop, and we built our own molds. In those days it had the black and the [unintelligible - 01:10:52] movement. And so they were the new styles of combs coming in to the market, and molds have to be built. We had the facility, machine shop facility. We built many of our own molds, and it saved us considerable… INTERVIEWER: Who would make a decision like that? Is it something that you read about, knowing what kinds of combs are coming into style?26 SPEAKER 1: Well, we would go to trade shows. We would go to trade shows in New York, Chicago. And you could -- the trend was out there, there was a trend, and you could detect it. And what other people, what other competitors would do, they have a pulse for what the market wanted. And after that was happening in the '70s or '80s, comb business was changing. And people change styles along. They became sharp. For a while they have all these apple comb, shampoo comb, the big 9-inch comb with a handle on it. Normally they have a regular 9-inch dresser comb which was all comb. Half of the comb was fine teeth; the other half was coarse teeth. So the apple comb with the shampoo comb with coarse teeth with a handle on it. So we were probably one of the first to get in on that trend. And they have this list; they give you the afro look. And we were very involved with that. And at the same time, with the change in the style of combs, there was also a change in the color of combs. Because the comb industry, basically, that we started with, we only had about three colors of comb. You'll have black, baby pink, and baby blue. Those were the colors. So if we went to trade shows, and plastics, the new plastics resins coming in to the market where you could color, add all kinds of color very easily. So color became very important in the comb business. So we got in on that trend and started to make a lot of colors, and it's one of the ways I think that we expanded and kept up with the competition. INTERVIEWER: Is Art Plastics and Cardinal Combs two separate companies? SPEAKER 1: Yes. SPEAKER 2: Two separate corporations. Same people. SPEAKER 1: Yes. Two separate corporations. Common ownership. The family owns -- I actually took the beginning. The family, to mention, our family, owned Art Plastics and Cardinal Comb. My son didn't join me in the plastics business until probably 1980 or so. 27 SPEAKER 2: Because of college. INTERVIEWER: Two sons, or… SPEAKER 2: Two sons in the plastics business now. INTERVIEWER: But did they originally all work in the plastics? SPEAKER 1: No. I'll tell you a little story. But the important and interesting is -- so we started to develop these colors like yellow and fuchsia, strawberry and lime, all the different colors of a comb. So it was probably my son Edward -- when did get he out of college? SPEAKER 2: '82. SPEAKER 1: '82. Edward, the youngest of my three sons, joined me at Cardinal Comb, and he was in charge of production, scheduling. And he and I went to trade shows. And then my second son Anthony was working in Boston in public accounting. So at one point my son Anthony said, "Dad I'm gonna be joining Cardinal Comb," and I said, "Are you?" "Yes. Edward wants me to join the company. He said that we need some help." I said that's fine. Glad to hear it. And so Anthony joined the company around 1983, something like that. So then I decided, this is not all the heads that we're gonna have, so we really have to expand to cover Anthony's salary. And so we concentrated more on marketing. So I put Anthony in charge of sales and marketing. And so Anthony would go to the trade shows. And so he came back from one trade show after he's been with the company for a year or so, he said, "Dad, we have to have more colors. We just can't get by with just three or four. We have to have eight or nine different colors. And we can get more of the shares of the market." And so I called Edward in, I said "Edward, we're gonna increase the inventory line of combs from about four colors to about eight or nine." Edward said, "Over my dead body, Dad. I'm not ready to have any more different colors." So I had these two very strong individuals, strong personality, and I could say from my experience from public accounting, I had seen 28 collisions or difficulty come in to certain partnerships and family arrangements. And I sat back and said no, these two [unintelligible - 01:17:11] want to run the show. It can only have one person running an operation; I got to find another way. I got to separate these companies. So that's when I made the decision to purchase another company called St. John, which we renamed First Plastics. And then I put Edward in charge of that. And so each -- it is my decision or purpose or call, really, to have each one of my eldest boys run their own company, which they would run it completely and be responsible. And that would give them the incentive, too. If they did well, they'd be rewarded. So it worked out very well, I think. INTERVIEWER: So is Art Plastics also making combs? SPEAKER 2: No. Just molding. SPEAKER 1: No. First Plastics was strictly a custom molding operation. That had some customers. So we acquired First Plastics in 1987, '88. 1988. We actually acquired it. And we had a relationship of molding with them. When we purchased -- when we set up First Plastics, the name of the company was St. John, and that was owned by the [unintelligible - 01:18:48] family from [unintelligible - 01:18:55] Massachusetts. So we get custom molding for them, and they own it solely because they have to go into plastics to make their plastics and things like that. But after they go on a few years, it didn't work out well for them and they decided that they were going to get out of the plastics business, and that's when St. John was up for sale. And that's when we purchased the company. And they had some custom molding and customer list, small customer list that went a long way. So we set up First Plastics in a separate location down the [unintelligible - 01:19:36], and Edward became the president of First Plastics, and Anthony became the president of Cardinal Comb./AT/jf/kb/es

The World Bank's Debtor Reporting System (DRS), from which the aggregates and country tables presented in this report are drawn, was established in 1951. The debt crisis of the 1980s brought increased attention to debt statistics and to the World debt tables, the predecessor to Global development finance. Now the global financial crisis has once again heightened awareness in developing countries of the importance of managing their external obligations. International capital flows to the 128 developing countries reporting to the World Bank Debtor Reporting System (DRS) fell by 20 percent in 2009 to $598 billion (3.7 percent of Gross National Income (GNI), compared with $744 billion in 2008 (4.5 percent of GNI) and a little over half the peak level of $1,111 billion realized in 2007. Private flows (debt and equity) declined by 27 percent despite a rebound in bond issuance, portfolio equity flows, and short-term debt flows. Both foreign direct investment (FDI) flows and bank lending fell precipitously. By contrast, the net inflow of debt-related financing from official creditors (excluding grants) rose 175 percent as support was stepped up to low- and middle-income countries severely affected by the global financial crisis.

Chinas economic growth continues to moderate, in 2014 gross domestic product (GDP) expanded by 7.4 percent, within the governments indicative growth target of about 7.5 percent for the year, but sharply slower than the 10 percent annual growth rate china averaged for three consecutive decades. An orderly correction in real estate - reflecting policy efforts to reduce supply mismatches and tighten nonbank credit - continues to weigh on economic activity. Ongoing adjustments in real estate, a buildup of excess capacity, and decelerating export growth are affecting industrial activity. In contrast growth in services remained robust as composition of growth continues to improve.

Since the Asian Financial Crisis in the late 1990s and through the Global Financial Crisis of the last decade, commendable progress has been made by the member states of the Association of South East Asian Nations (ASEAN) in improving economic and human development outcomes both within each country and across countries. Since 1997, the economies of the poorest countries in the ASEAN, Cambodia, Lao PDR, Myanmar and Vietnam, have generally grown faster than the richer economies, which has reduced gaps in per capita incomes. Overall, child mortality rates have been cut by two-thirds across the ASEAN. And significant reductions have occurred even in some of the poorer member countries such as Cambodia and Lao PDR. However, this report The ASEAN Equitable Development Monitor (henceforth referred to as The Monitor), also shows that much remains to be done to ensure that the poorest members of the ASEAN community, within countries and across countries, are not left behind as the countries of the ASEAN integrate further. In both policies and development outcomes, differences across the countries of the ASEAN remain large. In this context, the monitor is designed to facilitate further discussion on policies and programs that can promote inclusive growth within ASEAN member countries and across the ASEAN community. It presents a number of indicators that are intended to provide a summary of development outcomes across and within the ten ASEAN countries and over time. On this basis, the monitor is intended to help policymakers in ASEAN member states to identify areas of concerns and prioritize national and regional interventions. The monitor tracks indicators across two broad sets of development outcomes and policies: (i) economic development; and (ii) human development.

The general principles for credit reporting were issued by the World Bank in September 2011. Since then, the World Bank and the international committee on credit reporting (ICCR) have been leading efforts towards the implementation of the general principles worldwide. This report is one of the concrete outputs of the work following the general principles. It addresses one of the most significant problems that limit the ability of most small and medium enterprises (SMEs) around the world to obtain adequate external financing to underpin their productive activities: information asymmetries. Creditors assess the creditworthiness of credit and loan applicants based on two basic criteria: ones financial capacity or ability to repay a loan, and ones willingness to repay the loan. A credit reporting system s (CRS) basic objective is to address information asymmetries, which is crucial for determining repayment capacity and repayment willingness. Credit reporting can therefore be extremely valuable to creditors for enhanced, fact-based credit risk assessments, and in this sense can also be seen as a tool to facilitate access to financing, including by SMEs. The main objective of this report is therefore to identify actions that can be undertaken by authorities and other relevant policy makers to improve the flow of data and other relevant credit information on SMEs to creditors through CRS. For this purpose, the report first analyses the overall status of credit reporting activities in connection with SMEs.

As the Mongolian mortgage market grows rapidly, and the Government of Mongolia (GoM) pursues an ambitious social housing agenda, there is an urgent need for a holistic sector approach. The following three key areas require attention from policymakers: first, there is a need to better balance housing supply and demand, which requires the authorities to focus on prudent mortgage lending standards and supervision, as well as on provision of housing infrastructure and zoned land. Second, it will be important to ensure effective implementation of ongoing and planned public housing finance programs, with a focus on preventing mortgage market distortions in pricing, emphasizing robust planning and rigorous transparency and governance. Third, authorities should aim for better balance in the composition of mortgage funding, with a focus on improvement in the legal and regulatory framework for capital markets, as well as Mongolian Mortgage Corporation (MIK) governance, products and operations. The Mongolian mortgage market is exhibiting strong growth, with portfolio outstanding increasing by 190 percent to Mongolian Tughrik (MNT) 656 billion (US$482 million) between 2009 and end-2011. This represents 8 percent of 2010 gross domestic product (GDP) and 12 percent of the 2011 banking loan book. The sector is highly concentrated, with top 4 lenders accounting for 89 percent of the market, as well as spatially in and around Ulaanbaatar. Housing prices have risen sharply in the last two years, particularly in 2011, when the increase for the predominantly mortgaged market segment was over 36 percent. While mortgage lending growth rates are consistent with the overall growth of household credit, real estate prices significantly outpaced Consumer Price Index (CPI) and GDP growth in 2011. Currently non-performing loans (NPL) are very low due to the unseasoned mortgage portfolio; however, high debt-to-income (DTI) ratio levels may exacerbate future loan age-related and cyclical delinquency increases. Due in part to extreme climatic constraints, shortage of zoned and serviced land, and infrastructure bottlenecks, housing supply is severely constrained. Large-scale, publicly-funded, subsidized housing initiatives, such as the '100,000 Apartments' Program, need to be carefully planned, so that they cause minimal distortion to the broader housing finance market.

Mongolia's prospects in the medium term look excellent from a growth perspective as well as a fiscal management perspective. Staying the course in the medium term means implementing the landmark Fiscal Stability Law (FSL) passed last year, and adopting a supportive integrated budget law this spring session of parliament. The economy grew 6.1 percent year-on-year (yoy) in 2010, following a contraction of 1.3 percent in 2009. The last quarter of 2010 ended with a broad-based recovery, supported by transportation, construction and wholesale and retail trade. The latest survey conducted in informal labor markets in March 2011 revealed no changes in the total number of casual workers compared to December. Mongolia has promising growth prospects. It has the opportunity now to exercise prudent fiscal and macroeconomic policies so it can steer clear of the mistakes made by other resource rich economies and achieve its potential.

Bank loans can become non-performing because of problems with the borrower s financial health, problems with the design or implementation of lender protection features, or both. In ascertaining how to deal with a problem loan, it is important to distinguish between a borrower s ability to pay and willingness to pay, Making this distinction is not always easy and requires effort. This manual was written as a guide for lending institution staff dealing with non-performing loans (NPLs) extended to corporations and small and medium enterprises (SMEs). It deals with both ad hoc and systemic financial distress and delves into how borrower problems may have arisen in the first place. It provides guidance to lending institutions staff responsible for handling individual problem loans and to senior managers responsible for organizing portfolio-wide asset resolution.

After a strong rebound in 2010, Philippine economic growth slowed by more than half to 3.6 percent in the first three quarters of 2011. Slower third quarter (Q3) growth of 3.2 percent was the result of significant contractions in exports and public investment. The contraction in exports largely reflected weaker demand in advanced economies while public investments continued to shrink in part because of measures to improve accountability of public spending. On the production side, industrial and agricultural activities were sluggish, leaving the services sector to buoy growth. To improve growth outcome in the remainder of the year, the government announced a PHP 72 billion (about 0.7 percent of GDP) disbursement acceleration plan to ensure that budgeted items are spent by year end. After a strong rebound in 2010, Philippine economic growth slowed by more than half to 3.6 percent in the first three quarters of 2011, bringing year to date growth below the government's revised target of 4.5 to 5.5 percent for 2011. Q3 growth of 3.2 percent was driven by private consumption and inventory build-up, which grew by 7.1 and 147.7 percent respectively. The country's slower expansion places it behind its neighbors with Indonesia, Vietnam, and Singapore growing above 6 percent, Malaysia at 5.8 percent, and Thailand, which was devastated by massive flooding in recent months, at 3.5 percent.