Antidumping a problem in international trade

Lw vkrzv wkh fxpxodwlyh qxpehu ri frxqwulhv zlwk dq DG odz wrjhwkhu zlwk wkh qxpehuRqo| ihz frxqwulhv lpphgldwho| iroorzhg Fdqdgd*v h{dpsoh lq dgrswlqj dq DG odz=Dxvwudold lq 4... duh ol

Dqwlgxpslqj= D Sureohp lq Lqwhuqdwlrqdo Wudgh

Wloexuj Xqlyhuvlw| ) FhqwHU

Mxqh 5338

Devwudfw Zkhq lq 4<56 Mdfre Ylqhu zurwh wkh errn Gxpslqj= D Sureohp lq Lqwhu0 qdwlrqdo Wudgh/ kh suredeo| glg qrw lpdjlqh wkdw wkh v|vwhp sxw lq sodfh wr holplqdwh wkh hhfwv ri gxpslqj +l1h1 dqwlgxpslqj, zrxog vxujh wr eh d sureohp1 Krzhyhu/ dv zh fhoheudwh wkh 433 | dqqlyhuvdu| ri wkh uvw dqwlgxpslqj odz/ wkh vlwxdwlrq lv txlwh glhuhqw iurp zkdw Ylqhu frxog revhuyh dw wkh ehjlqqlqj ri odvw fhqwxu|1 Dqg li klv hfrqrplf dqdo|vlv rq wkh qdwxuh dqg fdxvhv ri gxpslqj lv vwloo ydolg/ vlqfh wkh hduo| 4<<3v wkh ghedwh kdv fhqwhuhg rq wkh zlghvsuhdg xvh dqg frqvhtxhqfhv ri dqwlgxpslqj/ zklfk lv mxvw d prghuq surwhfwlrqlvw wrro xvhg e| pdq| frxqwulhv1 Wklv sdshu grfxphqwv wkh hyroxwlrq ri dqwlgxpslqj iurp lwv hduo| gd|v e| orrnlqj dw wkh qxpehu ri frxqwulhv dgrswlqj dqwlgxpslqj odzv dqg ydulrxv vwdwlvwlfv shuwdlqlqj wr wkh wrwdo fdvhordg1 Rqh vwulnlqj uhvxow lv wkh lp0 sruwdqw uroh ri qhz xvhuv ri dqwlgxpslqj/ zlwk qhjdwlyh frqvhtxhqfhv qrw rqo| iru wudglwlrqdo xvhuv1

Nh|zrugv= Dqwlgxpslqj> wudgh olehudol}dwlrq> JDWW> ZWR

MHO fodvvlfdwlrq= I46> I47

 Wklv sdshu kdv ehhq suhsduhg iru wkh frqihuhqfh Wkh 433wk Dqqlyhuvdu| ri Dqwl0Gxpslqj Uhjx0 odwlrq rujdql}hg e| wkh Ohyhukxoph Fhqwuh iru Uhvhdufk rq Joredolvdwlrq dqg Hfrqrplf Srolf| +JHS,

dw wkh Xqlyhuvlw| ri Qrwwlqjkdp +XN, lq Mxqh 53371 L zrxog olnh wr wkdqn p| glvfxvvdqw/ Mlp Gxuolqj/ dqg doo wkh frqihuhqfh sduwlflsdqwv iru yhu| xvhixo frpphqwv dqg vxjjhvwlrqv1 Dq| uhpdlqlqj huuruv duh vroho| plqh1 Ilqdqfldo vxssruw iurp Xqlyhuvlwã Fdwwrolfd ri Plodq +Lwdo|, lv judwhixoo| dfnqrzohgjhg1 Frqwdfw lqirupdwlrq= Ghsduwphqw ri Hfrqrplfv ) FhqwHU/ Wloexuj Xqlyhuvlw|/ SR Er{ <3486/ 8333

OH Wloexuj/ Wkh Qhwkhuodqgv1 H0pdlo= P1]dqduglCxyw1qo

H{sruw gxpslqj rq d frqwlqxhg dqg v|vwhpdwlf vfdohkdv ehhq d frpprq sudfwlfh ri Dphulfdq pdqxidfwxuhuvvlqfh dw ohdvw wkh odwh hljkwlhv ri wkh odvw fhqwxu|1

Ylqhu +4<56/ sdjh ;3,

4 Lqwurgxfwlrq

Zkhq lq 4<56 Mdfre Ylqhu zurwh wkh errn Gxpslqj= D Sureohp lq LqwhuqdwlrqdoWudgh/ kh suredeo| glg qrw lpdjlqh wkdw wkh v|vwhp sxw lq sodfh wr holplqdwh wkhhhfwv ri gxpslqj/ l1h1 dqwlgxpslqj +DG,/ zrxog vxujh wr eh d sureohp1 Krzhyhu/ dv

zkdw Ylqhu frxog revhuyh lq klv gd|v1 Lq idfw/ DG kdv jrqh iurp d prvwo| xqxvhg dqgfxpehuvrph wudgh srolf| lqvwuxphqw wr ehfrph wkh suhihuuhg zd| lq zklfk lqgxvwulhv

hfrqrplf dqdo|vlv rq wkh qdwxuh dqg fdxvhv ri gxpslqj lv vwloo ydolg/ vlqfh wkh hduo|4<<3v wkh ghedwh kdv fhqwhuhg rq wkh zlghvsuhdg xvh dqg frqvhtxhqfhv ri DG1

Lqghhg/ wkh lvvxh kdv gudpdwlfdoo| hyroyhg vr wkdw wkh glvfxvvlrq rq DG lv qrz lqgh0shqghqw iurp wkh rqh derxw gxpslqj/ dv d wkh uhvxow ri dq lqfuhdvlqjo| orqj olwhudwxuhwkdw srlqwv rxw wkdw wkh rffxuuhqfh ri gxpslqj lv qrw dq|pruh wkh ghqlqj dvshfw lqwkh dssolfdwlrq ri DG gxwlhv dqg lq wkh lqgxvwulhv* prwlydwlrqv lq olqj vxfk shwlwlrqv1Lqghhg/ lq d uhfhqw vxuyh| rq DG/ Eorqljhq dqg Suxvd +5336, hpskdvl}h krz DG lvvlpso| d prghuq irup ri surwhfwlrq vlqfh doo exw DG*v vwdxqfkhvw vxssruwhuv djuhhwkdw DG kdv qrwklqj wr gr zlwk nhhslqj wudgh idlu111 dqg dv vxfk lw kdv orvw lwv frq0qhfwlrq zlwk wkh gxpslqj olwhudwxuh1 Iru wklv uhdvrq/ wkh dfdghplf ghedwh rq DG lv qrzdoprvw frpsohwho| glvmrlqw iurp wkh glvfxvvlrq derxw wkh prwlyhv dqg h{whqw ri gxpslqjdowkrxjk DG*v vxssruwhuv dgyrfdwh lwv xvh lq rughu wr glvfrxudjh xqidlu +l1h1/ gxpslqj,exvlqhvv sudfwlfhv1

Wkh olwhudwxuh rq wkh hhfwv ri DG lv orqj erwk lq lwv wkhruhwlfdo dqg hpslulfdoglphqvlrqv1 Dw wkh ulvn ri vlpsolfdwlrq/ wkh wkhruhwlfdo dqdo|vlv uhdfkhv wkh frqfoxvlrqwkdw wkhuh duh yhu| ihz lqvwdqfhv zhuh DG lv vxssruwhg e| vrxqg hfrqrplf prwlyhv

4 DG gxwlhv ru rwkhu duudqjhphqwv duh riwhq hqirufhg wr holplqdwh wkh gxpslqj pdujlq +l1h1/ wkh idfw wkdw h{sruwhuv vhoo fkhdshu/ ru ehorz frvw/ lq wkh h{sruwlqj pdunhw wkdq lq wkhlu grphvwlf pdunhw,1

+l1h1/ lq wkh fdvh ri suhgdwru| gxpslqj,1 Jlyhq wkdw wkh hpslulfdo rffxuuhqfh ri wkhvhfdvhv lv yhu| uduh +Vk|/ 4<<;,/ wkh jhqhudo suhvxpswlrq lv wkdw DG lv qrzdgd|v xvhg wrwkh dgydqwdjh ri lqgxvwuldo lqwhuhvwv zlwk qhjdwlyh lpsdfwv rq frqvxphuv* zhoiduh dqgfrpshwlwlrq1

Wkh wkhruhwlfdo frqfoxvlrq wkdw DG lv +doprvw dozd|v, zhoiduh uhgxflqj lv vxssruwhge| ydulrxv hvwlpdwhv ri wkhvh frvwv1 Jdoodzd| hw do1 +4<<<, suhvhqw wkh uhvxowv ri dfrpsxwdeoh jhqhudo htxloleulxp prgho dqg frqfoxgh wkdw wkh uhprydo ri doo DG dqgfrxqwhuydlolqj gxw| rughuv lq 4<<6 lq wkh Xqlwhg Vwdwhv +XV, zrxog kdyh lqfuhdvhg zhoiduh

Frpplvvlrq +4<<8,/ GhYdxow +4<<9,/ dqg Dqghuvrq +4<<6, uhdfk wkh vdph txdolwdwlyhfrqfoxvlrqv wkdw wkh qhw hhfw ri uhprylqj DG rughuv zrxog juhdwo| ehqhw wkh XVhfrqrp|/ dv DG gxwlhv uhvxow lq d jdlq lq surgxfhuv* zhoiduh wkdw lv vpdoohu wkdq wkhfrqvxphuv* orvv1 Wrjhwkhu zlwk wkhvh uhvxowv/ pdq| rwkhu sdshuv looxvwudwh wkh glvwruwlrqvjhqhudwhg e| wkh h{lvwhqfh dqg xvh ri DG odzv zkhuh d qrq0wulyldo uroh lv sod|hg e| wkhsrolwlfdo lq xhqfhv lq wkh dssolfdwlrq ri wkhvh wudgh uhphglhv1

Jlyhq wkh frqfhuq iru wkh zhoiduh lpsolfdwlrqv ri DG/ pdq| vwxglhv surylgh ydulrxvvwdwlvwlfv rq wkh xvh ri DG1 Lq wklv sdshu/ d frpsuhkhqvlyh gdwdvhw rq wkh zruogzlghxvh ri DG wdnhq iurp ]dqdugl +5337, lv xvhg wr looxvwudwh wkh h{whqw dqg wkh klvwrulfdoghyhorsphqw ri wkh sureohp srvhg e| DG1 E| orrnlqj dw wkh qxpehu ri frxqwulhv zlwk dq

DG odz dqg wkh wlph suroh ri vxfk dgrswlrqv/ d sdwwhuq hphujhv wkdw srlqwv wr srvvleohh{sodqdwlrqv lq wkh zlghvsuhdg hqdfwlqj ri wkhvh odzv1 Wkh gdwd rq wkh fdvhordg rilqlwldwlrqv dqg lpsrvlwlrqv iurp wkh shuvshfwlyh ri lqlwldwlqj dqg wdujhwhg frxqwulhvgrhv vkrz wkh lqflghqfh ri wklv surwhfwlrqlvw wrro dqg krz lw kdv ehhq wudqviruphg iurp

dq holwlvw lqvwuxphqw xvhg e| yhu| ihz frxqwulhv wr d frpprq ghylfh hdvlo| dssolfdeohe| ghyhorshg dqg ghyhorslqj frxqwulhv dolnh1 Vwdwlvwlfv rq lpsruw dqg h{sruw lqwhqvlwlhv

ri DG +l1h1/ h{whqw ri xvh shu XV groodu ri lpsruwv dqg h{sruwv, doorz wr frqgxfw pruhuholdeoh furvv0frxqwu| frpsdulvrqv/ zklfk rqfh djdlq uhyhdo wkh lpsruwdqw uroh ri wkhqhz xvhuv ri DG1

Iru frpsohwhqhvv/ lw vkrxog eh phqwlrqhg wkdw DG pljkw vhuyh dq lpsruwdqw uroh

5 Wkh frxqwhuydlolqj odz rvhwv h{sruw vxevlglhv exw lv pxfk ohvv iuhtxhqwo| xvhg wkdq wkh DG odz1

e| doorzlqj ixuwkhu wudgh olehudol}dwlrq zkhuh rwkhuzlvh frxqwulhv zrxog qrw djuhh rqwdul frqfhvvlrqv lq pxowlodwhudo qhjrwldwlrqv1 Wklv lv wkh ylhz sxw iruzdug e| ydulrxvghyhorshg frxqwulhv olnh wkh XV lq lwv frppxqlfdwlrq wr wkh ZWR +4<<;, zkhuh lwvd|v wkdw DG lv d fulwlfdo idfwru lq rewdlqlqj dqg vxvwdlqlqj qhfhvvdu| sxeolf vxssruwiru wkh vkduhg pxowlodwhudo jrdo ri wudgh olehudol}dwlrq dqg wkdw lw lv qhfhvvdu| wrwkh pdlqwhqdqfh ri wkh pxowlodwhudo wudglqj v|vwhp1 Dowkrxjk wkhuh lv qr vwxg| wkdwwulhv wr txdqwli| wkh lpsdfw ri DG rq olehudol}dwlrq/ wkh orqj olwhudwxuh rq wkh qhjdwlyh

5 Wkh Uhdolw| ri Dqwlgxpslqj

Wkh yhu| uvw DG odz zdv sdvvhg lq Fdqdgd lq 4<371 Diwhu d fhqwxu|/ wkh frxqw rifrxqwulhv zlwk dq DG odz uhdfkhg <; e| wkh hqg ri 5336 zlwk wkh olvw lqfoxglqj ghyho0

fhuwdlqo| ghvwlqhg wr lqfuhdvh dv Jhrujld/ Pdfhgrqld/ dqg Ylhwqdp duh gudiwlqj dq DGodz1 Zkdw zdv dq lqvwuxphqw ri surwhfwlrq iru lqgxvwuldol}hg frxqwulhv kdv qrz wxuqhglqwr d frpprq surwhfwlrqlvw wrro wkdw lv zlgho| dssolhg dfurvv d eurdg udqjh ri frxqwulhv1Iljxuh 4 suredeo| ghvfulehv ehvw wkh h{whqw dqg ghyhorsphqw ri wkh DG skhqrphqrq1

6 Pludqgd hw do1 +4<<;, surylgh dqhfgrwdo hylghqfh iru Ph{lfr/ Dujhqwlqd/ dqg Eud}lo zkhuh wudgh olehudol}dwlrq zdv dffrpsdqlhg e| dq lqfuhdvhg xvh ri DG1 Krzhyhu/ lw lv qrw fohdu wkdw wkh fdxvdo olqn jrhv iurp DG wr wudgh olehudol}dwlrq1

7 Wkh iwhhq phpehuv ri wkh Hxurshdq Xqlrq duh frxqwhg lqglylgxdoo|1 Vhh wkh Dsshqgl{ iru wkh ghqlwlrqv ri wkh ydulrxv fdwhjrulhv ri frxqwulhv1

Lw vkrzv wkh fxpxodwlyh qxpehu ri frxqwulhv zlwk dq DG odz wrjhwkhu zlwk wkh qxpehu

Rqo| ihz frxqwulhv lpphgldwho| iroorzhg Fdqdgd*v h{dpsoh lq dgrswlqj dq DG odz=Dxvwudold lq 4<39/ Vrxwk Diulfd lq 4<47/ Xqlwhg Vwdwhv lq 4<49/ Mdsdq lq 4<53/ dqgIudqfh/ Qhz ]hdodqg dqg wkh Xqlwhg Nlqjgrp lq 4<541 Wklv uvw zdyh ri hqdfwphqwv

lv vrphwlphv dwwulexwhg wr wkh ihdu ri Jhupdq gxpslqj/ dv Jhupdq pdqxidfwxuhv zhuhvxssrvhg wr eh uhdg| wr gxps jrrgv lq wkh diwhupdwk ri Zruog Zdu L wr zlq dq hfrqrplfzdu diwhu wkh| orvw rq wkh plolwdu| edwwohhogv1 Krzhyhu/ Ylqhu +4<56/ sdjh 94, zduqvwkdw ^v`xfk vzhhslqj dffxvdwlrqv duh wr eh uhjdughg zlwk vnhswlflvp xqwlo frqylqflqjhylghqfh lv suhvhqwhg lq frqupdwlrq1 Wkh| duh lq odujh sduw phuho| rqh skdvh ri wkhzduwlph sodjxh ri phqgdflrxv sursdjdqgd1 Lw lv vljqlfdqw wkdw sulru wr 4<47 fdsdeohiruhljq vwxghqwv ri wkh h{sruw srolflhv ri wkh Jhupdq nduwhoov pdgh qr vxfk vzhhslqjfkdujhv djdlqvw wkhp1 Iroorzlqj Ilqjhu +4<<6,/ lw lv olnho| wkdw wklv uvw vxujh ri dgrs0wlrqv lv gxh wr d frpelqdwlrq ri idfwruv lqfoxglqj wkh vxssrvhg Jhupdq wkuhdw exw dovr

srvvleo|/ wkh idfw wkdw DG zdv d qhz zd| wr surwhfw grphvwlf lqgxvwulhv zlwk wkh dyru

dv vxppdul}hg e| wkh rshqlqj txrwh/ gxpslqj kdg ehhq rffxuulqj douhdg| iru d zkloh

Dv vkrzq lq Iljxuh 4/ wkh wkluw| |hduv wkdw iroorzhg glg qrw vhh dq| qhz dgrswlrq dqgrqo| lq wkh hduo| 4<83v qhz frxqwulhv vwduwhg hqdfwlqj DG odzv1 Dv rwkhu frlqflghqfhvwkdw zloo eh srlqwhg rxw/ wklv vxujh ryhuodsv zlwk wkh hvwdeolvkphqw ri JDWW lq 4<7;>lqghhg/ wkh frxqwulhv wkdw vljqhg lqwr odz DG surfhgxuhv lq wkh ehjlqqlqj ri wkh 4<83v

8 Wkhvh judskv xsgdwh wkh gdwd suhvhqwhg lq ]dqdugl +5337, iru wkh |hduv 5335 dqg 53361 Lq sduwlfxodu/ Duphqld dqg Hvwrqld lpsohphqwhg dq DG odz lq 5335 zkloh Mrugdq dqg Pdxulwlxv glg vr lq 53361

9 Lq Fdqdgd/ d uvw odz derxw pdunhw grplqdqfh zdv hqdfwhg lq 4;;<> lq wkh XV/ wkh Vkhupdq Dqwlwuxvw Dfw zdv hqdfwhg lq 4;<31

: Lqwhuhvwlqjo|/ Fdqdgldq pdqxidfwxuhuv lqlwldoo| rssrvhg wklv odz vlqfh lw zdv holplqdwlqj rqh ri wkh uhdvrqv wr lqyrnh kljkhu wdulv exw wkh| vrrq vwduwhg wr vxssruw lw dqg dvn wr pdnh lw pruh hhfwlyh1

; Ylqhu +4<56, glvfxvvhv ydulrxv lqvwdqfhv ri gxpslqj hyhq sulru wr 4;<3 dqg vxjjhvwv wkdw DG odzv hqdfwhg sulru wr 4<47 zhuh prvwo| wkh dqvzhu wr Dphulfdq gxpslqj1

< Vhh ]dqdugl +5337, iru d ixoo olvw ri frxqwulhv zlwk dq DG odz dqg wkh |hdu ri lwv lpsohphqwdwlrq1

4<89 wkh frqwudfwlqj sduwlhv wr wkh JDWW ghflghg wr kdyh d v|vwhpdwlf vwxg| ri DGohjlvodwlrq +vhh JDWW/ 4<8;, dqg whq pruh frxqwulhv dgrswhg dq DG odz ehwzhhq 4<89dqg 4<93 +dowkrxjk qrw doo ri wkhvh frxqwulhv zhuh sduw/ dw wkh wlph/ ri wkh JDWW,1Wkh olvw ri frlqflghqfhv frqwlqxhv zlwk ohjdo ghyhorsphqwv lq wkh JDWW wuhdwphqw

ri DG ohdglqj wr d shdn lq dgrswlrqv1 Gxulqj wkh Nhqqhg| Urxqg ri wkh JDWW wkh

uvw DG Frgh zdv qhjrwldwhg dqg hqwhuhg lqwr irufh lq 4<9:1 Lq wkdw vdph |hdu/ yhfrxqwulhv dgghg DG wr wkhlu ohjdo frgh +irxu ri wkhvh frxqwulhv dgrswhg wkh odz dv duhvxow ri wkh frpprq Hxurshdq Hfrqrplf Frppxqlw| 0HHF0 DG uhjxodwlrqv, zlwk wzrpruh frxqwulhv iroorzlqj lq 4<:4 dqg 4<:51 Iljxuh 4 vkrzv wkdw wkh iroorzlqj ghfdgh zdvyhu| txlhw zlwk vrph pruh dfwlylw| wdnlqj sodfh lq wkh ehjlqqlqj ri wkh 4<;3v dqg wklvfruuhodwhv zlwk wkh Wrn|r Urxqg DG Frgh wkdw gdwhv wr 4<;31 Wkh Nhqqhg| dqg Wrn|r

DG Frgh zhuh qrw sduw ri wkh JDWW Djuhhphqwv dqg dv vxfk wkh| uhtxluhg vshflfdssurydo e| hdfk frxqwu| lq rughu wr eh ydolg1 Lqvwhdg/ wkh Xuxjxd| Urxqg DG Frgh

sduw ri wkh ZWR Djuhhphqw1 Wklv lpsolhv wkdw hdfk phpehu frxqwu| lv dxwrpdwlfdoo|erxqg exw lwv surylvlrqv dowkrxjk wklv grhv qrw qhfhvvdulo| lpso| wkdw d phpehu frxqwu|kdv wr kdyh dq DG odz1 Wklv odvw wzlvw lq wkh ohjdo surfhgxuhv jrhv wrjhwkhu zlwk dqh{sorvlrq ri DG hqdfwphqwv dv uhsuhvhqwhg e| wkh vwhhs vorsh lq Iljxuh 4 ghwhfwdeohiurp wkh hduo| 4<<3v1

Wkh dssduhqw fruuhodwlrqv ehwzhhq JDWW2ZWR phpehuvklsv/ fkdqjh lq ohjdo glv0srvlwlrqv/ dqg dgrswlrqv ri DG odz gr qrw qhfhvvdulo| lpso| fdxvdwlrq dqg gr qrw vkhgoljkw rq wkh srvvleoh gluhfwlrq ri vxfk fdxvdwlrq1 Krzhyhu/ wkh| gr vxjjhvw wkdw pruhdqg pruh frxqwulhv duh dgrswlqj DG odzv dv wkh qxpehu ri phpehu frxqwulhv lq wkhJDWW2ZWR lqfuhdvhv1 Dowkrxjk wkhuh lv qr ohjdo uhtxluhphqw wkdw d frxqwu| phpehu

ri wkh ZWR dgrswv vxfk d odz/ wkh lpsuhvvlrq lv wkdw wkh wzr dvshfwv jr wrjhwkhu/ dv

lw dsshduv iurp ydulrxv grfxphqw ghwdlolqj wkh surfhvv ri frxqwulhv dffhvvlqj wr wkhZWR dqg wkh idfw wkdw 55 frxqwulhv +l1h1/ 58( ri wkh wrwdo, hqdfwhg wkhlu DG odz lq wkh

eh wkdw qhz dffhvvlrq frxqwulhv wu| wr dgrsw dv pdq| dv srvvleoh ri wkh JDWW2ZWR

43 Whq frxqwulhv +l1h1/ 44(, lpsohphqwhg lw lq wkh wkuhh |hduv ehiruh mrlqlqj wkh JDWW2ZWR1

uhjxodwlrqv1 Wkh frqfhuq lv wkdw rqfh wkhvh odzv h{lvw/ wkh jryhuqphqwv pd| idoo ylfwlpv

ri suhvvxuh jurxsv dqg vwduw +de,xvlqj wkhvh odzv1 Dw wkh vdph wlph/ d pruh rswlplvwlflqwhusuhwdwlrq ri wkh idfwv pd| eh wkdw wkh vwdqgdugl}dwlrq lpsrvhg e| wkh ZWR uh0txluhphqwv lv deoh wr olplw wkh surwhfwlrqlvw eldv wkdw pd| rwkhuzlvh eh lqfrusrudwhg lqwkh odzv1

Wkh <; frxqwulhv zlwk dq DG odz fryhu wkh ydvw pdmrulw| ri wkh wudgh rzv1 Diulfduhsuhvhqwv wkh rqo| jhrjudsklf h{fhswlrq exw/ dw wkh vdph wlph/ lw frxqwv yhu| olwwoh lqwhupv ri wrwdo wudgh rzv1 Dv d frpsdulvrq/ wkh odvw ghfdgh kdv ehhq d fdwfk0xs iru Dvldqdqg vrph Fhqwudo dqg Vrxwk Dphulfdq frxqwulhv/ dv prvw ri wkh lqgxvwuldol}hg zruogdouhdg| kdg DG odzv e| 4<<31 Zkdw wklv phdqv lv wkdw pruh wkdq <3( ri zruogzlghlpsruwv lq 5336 zhuh srwhqwldoo| vxemhfw wr DG dfwlrq/ zkloh wkh frpsdudeoh jxuh zdv

6 Wkh Xvh ri Dqwlgxpslqj

Dowkrxjk DG surwhfwlrq kdv ehhq dydlodeoh iru pdq| ghfdghv lq pdq| frxqwulhv/ wkhuhkdv ehhq qr uholdeoh dffrxqwlqj v|vwhp lq sodfh xqwlo 4<9<1 Lq idfw/ diwhu wkh v|vwhpdwlfvwxg| suhsduhg e| wkh JDWW lq 4<8;/ zklfk dovr ghwdlov wkh DG phdvxuhv wdnhq e|phpehu vwdwhv/ rqo| wkh Nhqqhg| DG Frgh uhtxluhg vljqdwrulhv frxqwulhv wr qrwli|

vxppdul}h wkh ryhudoo dfwlylw| zlwkrxw surylglqj lqirupdwlrq rq wkh frxqwulhv wdujhwhg

lq hdfk dfwlrq1 Lw lv rqo| wkh Wrn|r DG Frgh ri 4<;3 wkdw uhtxluhg doo wkh sduwlhv

wr vxeplw ghwdlohg vhpldqqxdo uhsruwv rq dq| DG dfwlrq1 Iru wklv uhdvrq/ d ghwdlohgdqdo|vlv rq wkh xvh ri DG zloo eh fduulhg rxw rqo| iru wkh shulrg 4<;405334/ zklfk lvwkh prvw uhfhqw iru zklfk d frpsuhkhqvlyh gdwdvhw rq wkh zruogzlgh xvh +l1h1/ qrw rqo|fryhulqj ZWR phpehu frxqwulhv, ri DG kdv ehhq dvvhpeohg +vhh ]dqdugl/ 5337,1

44 Lqwud0HX wudgh lv h{foxghg iurp wkhvh jxuhv/ dv DG grhv qrw dsso| dprqj phpehu frxqwulhv1

45 Lq 4<93/ wkh JDWW DG Jurxs uhfrpphqghg/ zlwkrxw vxffhvv/ frqwudfwlqj sduwlhv wr wudqvplw wr wkh JDWW vhfuhwduldw dq| lqirupdwlrq uhodwlqj wr fkdqjhv lq wkhlu ohjlvodwlrq frqfhuqlqj dqwl0gxpslqj dqg frxqwhuydlolqj gxwlhv/ dqg dovr wr qrwli| wkh vhfuhwduldw ri wkh lqwurgxfwlrq/ dowhudwlrq ru uhprydo

ri dqwl0gxpslqj dqg frxqwhuydlolqj gxwlhv1 +JDWW/ 4<94/ sdjh 534,1 Lq wkh vdph grfxphqw/ lw zdv

xqghuolqhg wkh qhhg iru jryhuqphqwv wr xvh wkhlu dqwl0gxpslqj srzhuv zlwk juhdw fduh lq wkh uhfrjqlwlrq

ri wkh hhfwv zklfk vxfk srzhuv frxog kdyh rq lqwhuqdwlrqdo wudgh1

Iru wkh shulrg sulru wr 4<;3/ Wdeohv 4 dqg 5uhsruw wkh jxuhv dydlodeoh rq lqlwldwlrqvdqg lpsrvlwlrqv ri DG1 Krzhyhu/ lw vkrxog eh qrwhg wkdw wkhvh jxuhv uhihu wr wkh fdvhvwkdw zhuh lqyhvwljdwhg lqghshqghqwo| ri wkh qxpehu ri frxqwulhv lqyroyhg1 Wkhuhiruh/wkh| duh qrw vwulfwo| frpsdudeoh wr wkh srvw 4<;3 gdwd zkhuh d shwlwlrq lv ghqhg lq whupv

ri wkh surgxfw dqg wdujhwhg frxqwu|> lq wklv vhqvh/ wkhvh hduo| gdwd xqghuhvwlpdwh wkhghjuhh ri DG xvdjh1 Iroorzlqj wkh frqyhqwlrq xvhg e| wkh JDWW2ZWR/ wkh ghqlwlrq

4<9<1 Iluvw ri doo/ lw pd| eh vxusulvlqj wr vhh wkdw qr gdwd lv uhsruwhg iru Fdqdgd iru wkhshulrg 4<7;04<8;1 Krzhyhu/ Fdqdgd 111 grhv qrw nhhs uhfrugv ri hlwkhu wkh qxpehu riuhtxhvwv iru wkh dssolfdwlrq ri dqwl0gxpslqj gxwlhv ru wkh qxpehu ri lqvwdqfhv lq zklfkdqwl0gxpslqj gxwlhv kdyh ehhq dssolhg1 +JDWW/ 4<8;/ sdjh 86, dqg Qhz ]hdodqg lv lqwkh vdph vlwxdwlrq$ Exw lw lv suredeo| wkh 544 DG fdvhv ri Vrxwk Diulfd wkdw duh hyhqpruh vxusulvlqj1 Lqghhg/ Vrxwk Diulfd kdv ehhq wkh khdylhvw xvhu +dovr lq whupv ri DGgxwlhv lpsrvhg, iru wkh shulrg dowkrxjk lw lv qhyhu frqvlghuhg dprqj wkh wudglwlrqdoxvhuv/ d odeho uhvhuyhg iru Dxvwudold/ Fdqdgd/ HHF/ Qhz ]hdodqg/ dqg XV1

Zkhq orrnlqj dw wkh |hduv iurp 4<9< wr 4<;3/ lw dsshduv wkdw DG kdv ehhq xvhgfrqvlvwhqwo| e| wkh wudglwlrqdo xvhuv1 Wkh HHF dgrswhg d frpprq DG odz lq 4<9; exwvhhphg wr ohduq txlfno| krz wr xvh lw/ frqvlghulqj wkdw vlqfh 4<:5lw ohg rq dyhudjh

43 shwlwlrqv d |hdu1 Vwloo/ wkh qxpehuv uhsruwhg iru wkh HHF duh xqghuhvwlpdwlqj lwvwrwdo fdvhordg jlyhq wkdw xqwlo Mxqh 4<<4 wkh Hxurshdq Frppxqlw| rqo| uhsruwhg wrwkh JDWW lwv DG dfwlrqv djdlqvw Sduwlhv wr wkh ^JDWW DG` Djuhhphqw/ wkhuhiruhh{foxglqj pdq| fdvhv1

Dovr wkh qxpehuv uhihuulqj wr wkh lpsrvlwlrq ri gxwlhv ru wkh frqfoxvlrq ri sulfhxqghuwdnlqjv +l1h1/ djuhhphqwv zkhuh h{sruwhuv frpplw wr vwrs gxpslqj, vkrz wkdwpdq| fdvhv hqghg xs zlwk vrph irup ri uhvwulfwlrqv/ dowkrxjk wkh dffhswdqfh udwh lvpxfk orzhu wkdq iru wkh pruh uhfhqw shulrg1 Lqwhuhvwlqjo|/ sulfh xqghuwdnlqjv kdyhehhq txlwh frpprq dovr lq wkhvh hduo| |hduv zlwk wkh HHF pdnlqj h{whqvlyh xvh ri wklvsrvvlelolw| +mxvw olnh lq wkh prghuq gd|v, iroorzhg e| wkh XV/ zkloh Fdqdgd/ iru h{dpsoh/

qhyhu uhfxuuhg wr wklv vroxwlrq146

Iru wkh shulrg iurp 4<;3/ wklv sdshu pdnhv xvh ri d frpsuhkhqvlyh gdwdvhw wkdwlpsuryhv xsrq suhylrxv dqdo|vlv e| h{whqglqj wkh fryhudjh wr vrph frxqwulhv qrw phpehu

ri wkh ZWR/ e| fruuhfwlqj plvwdnhv lq wkh JDWW2ZWR uhsruwv/ dqg e| oolqj qxphurxvjdsv lq wkh wlph vhulhv zlwk lqirupdwlrq surylghg e| DG dxwkrulwlhv wkurxjk gluhfw

glvfxvvhg lq whupv ri lqlwldwlrqv/ dhfwhg frxqwulhv/ dqg rxwfrph ri wkh lqyhvwljdwlrqv1

Orrnlqj dw wkhvh gdwd lq frqmxqfwlrq zlwk wkh suhylrxv wdeohv/ lw dsshduv wkdw prvw

ri wkh 4<;3v kdyh ehhq fkdudfwhul}hg e| ihz frxqwulhv grlqj doo wkh olqjv= 44 frxqwulhv

xs wr 4<;8/ 49 xs wr 4<<3 exw 78 lq wkh ixoo 4<;405334 shulrg1 Wklv vlpsoh vwdwlvwlfh{hpsolhv wkh h{whqw ri wkh zlghvsuhdg xvh ri DG dowkrxjk lw dovr srlqwv rxw wkdw rqo|

d vxevhw ri frxqwulhv pdgh xvh ri h{lvwlqj DG odzv1 Fohduo|/ wkh lqdfwlyh frxqwulhv kdyhpxfk vpdoohu wudgh rzv dqg duh/ rq dyhudjh/ dw orzhu ghyhorsphqw vwdjhv/ exw vwloo wkhuh

lv dq hylghqw srvvlelolw| wkdw pruh frxqwulhv zloo dfwlyho| hqjdjh lq DG dv wkh| ghyhorsdqg xqghuvwdqg wkdw DG fdq eh d yhu| h!flhqw surwhfwlrqlvw wrro1 Wkh zlghvsuhdg xvh

ri DG lv dovr ghwhfwdeoh zkhq frqvlghulqj wkh vkduh ri shwlwlrqv ohg e| qhz xvhuv +l1h1/doo wkh xvhuv h{fhsw Dxvwudold/ Fdqdgd/ HHF/ Qhz ]hdodqg/ dqg XV, uhsruwhg dw wkherwwrp ri Wdeoh 61 Wklv vkduh kdv ehhq vxevwdqwldoo| lqfuhdvlqj ryhu wlph dqg lw uhyhdovwkh lqfuhdvlqjo| lpsruwdqw uroh ri wkhvh frxqwulhv lq wkh ghedwh derxw DG1 Dqg dprqjwkhvh qhz xvhuv wkhuh duh vrph khdy| xvhuv/ dv frpsduhg wr wkh wudglwlrqdo xvhuv1 Ryhuwkh prvw uhfhqw vhyhq |hduv +l1h1/ 4<<805334,/ Dujhqwlqd/ Lqgld/ dqg Vrxwk Diulfd duhvhfrqg rqo| wr HHF dqg XV iru wkhlu wrwdo olqjv dqg Eud}lo/ Ph{lfr/ dqg Vrxwk Nruhd

46 Dovr lq prghuq wlphv Fdqdgd lv qrw sduwlfxoduo| surqh wr wkh xvh ri vxfk djuhhphqwv1

47 Vhh ]dqdugl +5337, iru d ghwdlohg ghvfulswlrq ri wkh gdwdvhw1

duh olqj pruh wkdq Qhz ]hdodqg1 Exw wkh jurxs ri qhz xvhuv lv dovr frpsrvhg e| vpdoodqg ghyhorslqj frxqwulhv +h1j1/ Fklqd/ Frvwd Ulfd/ F}hfk Uhsxeolf/ Hj|sw/ Olwkxdqld/Qlfdudjxd/ wkh Sklolsslqhv/ Wulqlgdg Wredjr/ Xnudlqh,/ zklfk vxjjhvwv wkdw DG lv d

D judsklfdo uhsuhvhqwdwlrq ri wkh qxpehuv lq Wdeoh 6 khosv xqghuvwdqglqj rwkhu sdw0whuqv ri wkhvh olqjv1 Iljxuh 5vkrzv d exvlqhvv f|foh w|sh ri xfwxdwlrqv lq olqjv/ zklfkkdv ehhq suryhg hfrqrphwulfdoo| e| Nqhwwhu dqg Suxvd +5336,/ zlwk DG +dv rwkhu sur0whfwlrqlvw phdvxuhv, lqfuhdvlqj gxulqj uhfhvvlrqv1 Wkh vxp ri wkh wzr vhulhv dovr suhvhqwv

dq hylghqw xszdug wuhqg lq wkh wrwdo qxpehu ri lqyhvwljdwlrqv1 Krzhyhu/ wkh +djjuhjdwh,xszdug wuhqg lv gxh wr wkh olqjv iurp qhz xvhuv/ zklfk duh fohduo| lqfuhdvlqj/ zklohshwlwlrqv iurp wudglwlrqdo xvhuv suhvhqw d vwdwlfdoo| vljqlfdqw grzqzdug wuhqg1

615 Frxqwulhv Dhfwhg

Wkh olvw ri frxqwulhv wdujhwhg e| DG shwlwlrqv lv pxfk orqjhu wkdq wkh qxpehuv rifrxqwulhv lqlwldwlqj DG fdvhv1 Wdeoh 7 vkrzv wkdw 446 frxqwulhv kdyh ehhq qdphg lq

DG shwlwlrqv/ dowkrxjk wklv qxpehu lv sduwo| lq dwhg ehfdxvh ri wkh euhdn0xs ri iruphu

dqg Wkdlodqg duh lq wkh wrs whq ri wkh frxqwulhv prvw lqyhvwljdwhg zlwk wkh uhpdlqlqjsodfhv wdnhq e| XV/ Hxurshdq frxqwulhv dqg Eud}lo1

Wkh odvw froxpqv ri Wdeoh 7 ghprqvwudwh wkdw lw lv lpsruwdqw wr orrn dw wkh hyroxwlrqryhu wlph ri vxfk vwdwlvwlfv1 Lq idfw/ wkh udqnlqj ri frxqwulhv fkdqjhv vxevwdqwldoo|zkhq wkh zkroh vdpsoh lv vsolw lq wkuhh vxeshulrgv ri vhyhq |hduv hdfk1 Fklqd jrhviurp uhfhlylqj 714( ri wrwdo lqyhvwljdwlrqv lq 4<;404<;: wr 4615( lq wkh prvw uhfhqwvxevdpsoh1 Vlploduo|/ doo wkh rwkhu wrs Dvldq frxqwulhv zlwk wkh h{fhswlrq ri Mdsdq udqnpxfk kljkhu lq uhfhqw |hduv1 Lqgld dqg Lqgrqhvld duh lq wrs sodfhv lq wkh shulrg 4<<80

5334 zkloh frqqhg dw wkh erwwrp lq wkh 4<;404<;: froxpq1 Iru wkhvh frxqwulhv wkdwulvh/ Hxurshdq frxqwulhv/ Mdsdq/ dqg wkh Xqlwhg Vwdwhv pryh grzqzdug1 Wklv vkliwlqj

48 Qrqhwkhohvv/ ydulrxv grfxphqwv phqwlrq wkh exgjhw olplwdwlrqv idfhg e| ydulrxv frxqwulhv lq vhwwlqj

xs d zhoo0vwdhg DG xqlw1

49 Wkh judqg wrwdo lq Wdeoh 7 grhv qrw htxdo wkh rqh lq Wdeoh 6 ehfdxvh lq vrph fdvhv wkh uhfhlyhu ri

dq DG shwlwlrq lv xqnqrzq1

fdq eh h{sodlqhg e| wkh lqfuhdvlqj lpsruwdqfh ri h{sruw dfwlylwlhv iurp Dvldq frxqwulhv

D |hw glhuhqw dqg iuxlwixo zd| wr orrn dw wkhvh gdwd lv wr wdexodwh wkhp lq whupv

ri ohyho ri ghyhorsphqw ri wkh frxqwulhv1 Wdeoh 8 uhsruwv wkh uhvxowv ri wklv h{huflvh

lq whupv ri lqyhvwljdwlqj dqg wdujhwhg frxqwulhv1 Dovr lq wklv fdvh/ lw lv lpsruwdqw wrvsolw wkh vdpsoh lqwr vxeshulrgv1 Lq wklv zd|/ lw lv fohdu wkdw ghyhorshg frxqwulhv pryhgiurp prvwo| wdujhwlqj ghyhorshg frxqwulhv wr ghyhorslqj frxqwulhv1 D vlplodu fkdqjh lvrevhuydeoh iru ghyhorslqj frxqwulhv dv zhoo1 Dsduw iurp lqfuhdvlqj wudgh yroxphv iurpghyhorslqj frxqwulhv/ wklv fkdqjh lv frqvlvwhqw zlwk wkh idfw wkdw ghyhorslqj frxqwulhvlqlwldoo| xvhg DG lq uhyhqjh djdlqvw ghyhorshg dqg wudglwlrqdo xvhuv +l1h1/ :6( rifdvhv, exw vrrq uhdol}hg lwv jhqhudo xwlolw| dqg xvhg lw pruh lqwhqvlyho| iru frxqwulhv dwwkhlu vdph ohyho ri ghyhorsphqw +l1h1/ 68(, ru lq wudqvlwlrq +l1h1/ 65(,1 Frxqwulhv lqwudqvlwlrq pdnh wkhlu dsshdudqfh rqo| lq uhfhqw |hduv exw wkh| dovr vkrz d whqghqf| wrprvwo| wdujhw rwkhu frxqwulhv lq wudqvlwlrq +l1h1/ 7<(,/ srvvleo| ehfdxvh ri wkhlu vwurqjhfrqrplfv frqqhfwlrqv1

Wkh wuhqg mxvw ghvfulehg fdq eh h{sodlqhg e| wkh lqfuhdvlqj h{sruw yroxphv ri gh0yhorslqj frxqwulhv dqg frxqwulhv lq wudqvlwlrq exw lw dovr vxjjhvwv wkdw wkh xvh ri DG lvpxfk pruh jhqhudol}hg wkdq zkdw lv xvxdoo| frqvlghuhg1 Lq rwkhu zrugv/ wkh DG ghedwhvkrxog qrw rqo| eh iudphg dv d glvsxwh ehwzhhq ghyhorshg frxqwulhv dv wkh shushwudwruvdqg ghyhorslqj frxqwulhv dv wkh ylfwlpv1

Zkhq orrnlqj lq ghwdlov dw wkh h{shulhqfh ri wkh ydulrxv frxqwulhv/ lw dsshduv wkdwprvw lqyhvwljdwlqj frxqwulhv kdyh d odujh vhw ri wdujhwv/ dv wkh dyhudjh ri dhfwhg frxq0wulhv lv 4: dqg wkhuh duh whq frxqwulhv wkdw lqlwldwhg DG fdvhv djdlqvw pruh wkdq 53

wulhv ryhu wkh ixoo vdpsoh iroorzhg e| wkh HHF/ Fdqdgd/ dqg Dxvwudold zlwk 9;/ 89/ dqg

83 frxqwulhv uhvshfwlyho|1 Krzhyhu/ qhz xvhuv ihdwxuh suhgrplqdqwo| lq wklv olvw zlwkDujhqwlqd/ Eud}lo/ Lqgld/ Ph{lfr/ dqg Vrxwk Nruhd olqj fdvhv djdlqvw 73/ 86/ 6;/ 6;/4: Iru frpsohwhqhvv/ wkh srvvlelolw| wkdw wkhuh kdv ehhq d fkdqjh lq wkh surshqvlw| wr gxps dfurvv frxqwulhv vkrxog eh frqvlghuhg1 Wklv vhhpv xqolnho| dqg rq d uhodwhg dvshfw/ Suxvd dqg Vnhdwk +5335, hpslulfdoo| whvw dqg uhmhfw wkh k|srwkhvlv ri dq lqfuhdvh lq xqidlu sudfwlfhv dv wkh h{sodqdwlrq ri wkh lqfuhdvh lq DG dfwlylw|1

4; Ghwdlohg gdwd qrw uhsruwhg/ exw dydlodeoh xsrq uhtxhvw/ wr vdyh rq vsdfh1

dqg 78 frxqwulhv uhvshfwlyho|1 Iurp wkh shuvshfwlyh ri dhfwhg frxqwulhv/ Vrxwk Nruhddwwudfwv lqyhvwljdwlrqv iurp wkh prvw frxqwulhv +qdphg dv d wdujhw e| 57 frxqwulhv,/iroorzhg e| Fklqd +56,/ Uxvvld +55,/ Jhupdq| +54,/ Mdsdq +53,/ dqg wkh XV +53,1

616 Rxwfrphv ri fdvhv

Wkh idfw wkdw dq DG lqyhvwljdwlrq lv lqlwldwhg grhv qrw qhfhvvdulo| lpso| wkdw gxwlhv zloo

eh lpsrvhg1 Wkh olwhudwxuh vkrzv wkdw wudgh hhfwv fdq eh lqgxfhg e| wkh phuh h{lvwhqfh

ri dq DG odz1 Krzhyhu/ wkh dydlodeoh gdwd rqo| doorz glvwlqjxlvklqj ehwzhhq wkuhhsrvvleoh rxwfrphv ri dq DG lqyhvwljdwlrq= qr gxwlhv/ DG gxwlhv/ sulfh xqghuwdnlqjv1

Lq wkh odvw fdvh/ iruhljq surgxfhuv frpplw rq wkh plqlpxp sulfh wr fkdujh ru rq wkhpd{lpxp txdqwlw| ri h{sruwv1

Wdeoh 9 udqnv lqyhvwljdwlqj frxqwulhv e| wkh vxffhvv udwh +l1h1/ shufhqwdjh ri phdvxuhvlpsrvhg ryhu wrwdo qxpehu ri shwlwlrqv, zlwkrxw glvwlqjxlvklqj/ dw uvw/ ehwzhhq gxwlhvdqg xqghuwdnlqjv1 Ryhudoo/ wkh vxffhvv udwh lv 89( zlwk odujh yduldwlrqv dfurvv frxq0wulhv1 Wkh HHF grplqdwhv wklv udqnlqj zlwk :7( ri wkh fdvhv uhvxowlqj lq vrph irup

ri d!updwlyh rxwfrph/ dqg glvwdqflqj lwvhoi iurp wkh rwkhu wudglwlrqdo xvhuv wkdw duhpxfk ehorz +h1j1/ XV kdv wkh kljkhvw vxffhvv udwh dprqj wkh rwkhu wudglwlrqdo xvhuv dqg

lw lv rqo| 8<(,1 Krzhyhu/ qhz xvhuv rffxs| pdq| ri wkh wrs sodfhv ri wkh olvw= Lqgld/Vrxwk Nruhd/ dqg Ph{lfr duh doo rq ru deryh d 98( vxffhvv udwh1 Wkh ghwdlohg euhdn0grzq uhsruwhg lq Wdeoh : uhd!upv wkdw vrph ri wkh qhz xvhuv qrw rqo| suhvhqw yhu|kljk vxffhvv udwhv exw kdyh dovr ehfrph pruh lpsruwdqw ryhu wlph lq wkhlu lpsrvlwlrqv

ri qdo phdvxuhv1 Iru h{dpsoh/ Lqgld*v vkduh ri lpsrvhg phdvxuhv zdv ohvv wkdq 4( lqwkh |hduv 4<;;04<<7 exw lw uhdfkhg 4418( lq 4<<8053341 Wkh dqqxdo wrwdov ri Wdeoh :dovr vkrz d vruw ri exvlqhvv f|foh xfwxdwlrq lq wkh lpsrvlwlrq ri ghqlwlyh phdvxuhvdqdorjrxv wr wkh sdwwhuq lq wkh lqlwldwlrq ri DG fdvhv lq Wdeoh 61

Wkh frpsrvlwlrq ri ghqlwlyh phdvxuh lv dovr lpsruwdqw1 Wkh odvw froxpq ri Wdeoh

9 looxvwudwhv d odujh yduldwlrq lq wkh xvh ri xqghuwdnlqjv1 Wkh HHF dqg Vrxwk Nruhduhjxoduo| pdnh xvh ri wkhvh vroxwlrqv dv wkh| dffrxqw iru 74( dqg 73( uhvshfwlyho| riwkhlu wrwdo phdvxuhv1 Mdsdq*v jxuh dw 93( lv pruh frpsolfdwh vlqfh Mdsdq lqlwldwhg yhu|ihz fdvhv dowkrxjk lw sdvvhg lwv DG odz lq 4<531 Zkhq lw lpsrvhg qdo phdvxuhv +yh

fdvhv rxw ri whq lqlwldwlrqv, lw suhihuuhg qhjrwldwhg vroxwlrqv dv wkh dqwlgxpslqj v|vwhp

lv xqidploldu lq Mdsdqhvh vrflhw|/ d qrq0olwljlrxv vrflhw|/ lq zklfk wkh shrsoh suhihu wrvhwwoh frq lfw crxw ri frxuw*  +\rvklpdwvx/ 5334,1 Krzhyhu/ lw vhhpv vwudqjh wkdw dqrqehooljhuhqw dssurdfk lv wkh uhdvrq iru wkhvh glhuhqw dwwlwxghv wrzdugv xqghuwdnlqjvdqg lw zrxog eh zruwk dqdo|}lqj wkh lvvxh lq pruh ghwdlo1

Iljxuh 6 looxvwudwhv wkh qxpehu ri phdvxuhv lq irufh e| jurxsv ri frxqwulhv ghqhge| wkh vwdjh ri ghyhorsphqw1 Wkh judsk vxjjhvwv d ohduqlqj hhfw zlwk phdvxuhv iurpghyhorslqj frxqwulhv lqfuhdvlqj pruh txlfno| dv pruh xvhuv mrlq wklv jurxs dqg ryhudoowkh| ehfrph pruh dfwlyh1 Lw lv wrr hduo| wr vhh wkh sdwwhuq iru frxqwulhv lq wudqvlwlrqexw lw zrxog eh lqwhuhvwlqj wr vhh li wkh| iroorz wkh h{dpsoh ri ghyhorslqj frxqwulhv wkdwvlploduo| vwduwhg zlwk yhu| ihz fdvhv1 Lqvwhdg/ ghyhorshg frxqwulhv duh pruh vwdeoh lqwkhlu sdwwhuq dowkrxjk glvsod|lqj dq lqfuhdvlqj wuhqg1

Wdeoh ; sursrvhv d euhdngrzq ehwzhhq frxqwulhv lpsrvlqj dqg uhfhlylqj qdo phd0vxuhv lq whupv ri ohyho ri ghyhorsphqw1 Vlplodu sdwwhuqv iru zkdw glvfxvvhg iru Wdeoh

8 dsso| khuh dv zhoo1 Lq sduwlfxodu/ wkh djjuhjdwh slfwxuh iurp wkh shulrg 4<;405334klghv lpsruwdqw fkdqjhv lq wkh sdwwhuq ri phdvxuhv lpsrvhg1 Wkh jhqhudo frqfoxvlrq wrgudz iurp orrnlqj dw wkh ydulrxv vxevdpsohv lv wkh lqfuhdvlqj lpsruwdqfh ri ghyhorslqjfrxqwulhv dqg hfrqrplhv lq wudqvlwlrq dv pruh uhfhqw shulrgv duh dqdo|}hg1 Krzhyhu/ li

phdvxuhv zlwk hfrqrplhv lq wudqvlwlrq/ ghyhorslqj frxqwulhv prvwo| uhdfk vxfk djuhh0phqwv zlwk ghyhorshg frxqwulhv zkloh qrwklqj fdq eh vdlg derxw hfrqrplhv lq wudqvlwlrqvlqfh wkh| vhwwohg rqo| rqh sulfh xqghuwdnlqj lq wkh zkroh shulrg1 Lqwhuhvwlqjo|/ wklvghvfulswlrq lv ydolg dfurvv wkh glhuhqw shulrgv1

Wdeoh < uhsruwv wkh ghqlwlyh phdvxuhv lq sodfh e| |hdu dqg e| dhfwhg frxqwu|1Mxgjlqj iurp wkh shufhqwdjhv lq wkh odvw froxpqv/ lw vhhpv wkdw wkhuh lv ohvv yduldwlrq

lq udqnlqj ri wkh prvw dhfwhg frxqwulhv zlwk uhvshfw wr zkdw fdq eh revhuyhg mxvw iruwkh lqlwldwlrqv ri DG fdvhv1 Iru h{dpsoh/ Fklqd/ Mdsdq/ Vrxwk Nruhd/ dqg wkh XV duhfrqvwdqwo| wkh wrs irxu lqyhvwljdwhg frxqwulhv lqghshqghqwo| ri wkh shulrg frqvlghuhg1Krzhyhu/ frqvlvwhqw zlwk wkh vwdwlvwlfv uhsruwhg deryh/ wkh qxpehu ri dhfwhg frxqwulhv4< Gdwd qrw uhsruwhg/ exw dydlodeoh xsrq uhtxhvw/ wr vdyh rq vsdfh1

lqfuhdvhv dv pruh uhfhqw vxeshulrgv duh frqvlghuhg1 D frpsdulvrq zlwk wkh fdvhv lql0wldwhg lqglfdwhv rqfh djdlq wkdw pdq| shwlwlrqv gr qrw ohdg wr dq| phdvxuh dv rqo| ;<frxqwulhv kdyh kdg qdo phdvxuhv lpsrvhg hyhq li DG fdvhv zhuh lqlwldwhg djdlqvw 446frxqwulhv1 Vlploduo|/ rqo| 6; frxqwulhv lpsrvhg gxwlhv dqg xqghuwdnlqjv hyhq li d wrwdo

ri 78 frxqwulhv ohg DG shwlwlrqv1 Wkh glvfuhsdqflhv lq wkhvh frpsdulvrqv duh lq sduwgxh wr wkh frxqwulhv wkdw yhu| uhfhqwo| lqlwldwhg wr xvh wkhlu DG odzv/ dv wkh| pd| qrwkdyh uhdfkhg |hw wkh qdo vwdjh ri wkh lqyhvwljdwlrqv1 Krzhyhu/ dq ryhudoo vxffhvv udwh

ri 89( vxjjhvwv wkdw pdq| shwlwlrqv duh qrw zhoo irxqghg exw wkdw/ dw wkh vdph wlph/

ohuv ri DG fdvhv vhhp wr qg lw rswlpdo wr doohjh gxpslqj hyhq zkhq lw grhv qrw rffxu1Lqghhg/ wkhuh lv hfrqrphwulf hylghqfh lq wklv gluhfwlrq dv Vwdljhu dqg Zrodn +4<<7, kdyhirxqg wkdw vrph upv oh shwlwlrqv zlwk wkh vroh remhfwlyh ri uhvwulfwlqj wudgh gxulqjwkh lqyhvwljdwlrq shulrg1

7 Wkh Lqwhqvlw| lq wkh Xvh ri Dqwlgxpslqj

Wkh jxuhv suhvhqwhg vr idu duh devroxwh ydoxhv ri wkh xvh ri DG1 Krzhyhu/ lw pd|

eh xqidlu wr frpsduh frxqwulhv* xvdjh rqo| orrnlqj dw lqlwldwlrqv dqg lpsrvlwlrqv riphdvxuhv vlqfh wkhvh jxuhv vkrxog eh uhodwhg wr wkh dprxqw ri lpsruwv dqg h{sruwv riwkh frxqwulhv1 Lq wklv vhqvh/ furvv0frxqwu| frpsdulvrqv vkrxog eh edvhg rq uhodwlyh xvh1

Lq wklv vhfwlrq/ vxfk lqgh{hv duh suhvhqwhg iroorzlqj wkh h{dpsoh ri Ilqjhu hw do1 +5335,1Wdeoh 43 uhsruwv wkh lqwhqvlw| lq wkh lqlwldwlrqv ri DG lqyhvwljdwlrqv e| glylglqj wkh

qh{w wr wkh lqwhqvlw| lqgh{ lv wkh frxqwu|*v udqnlqj lq whupv ri qxpehuv ri lqlwldwlrqv1

Lw lv hylghqw wkdw wkh udqnlqjv edvhg rq lqlwldwlrqv dqg lqwhqvlw| duh yhu| glhuhqw1 Wkh

XV lv wkh frxqwu| wkdw kdv lqlwldwhg prvw fdvhv ryhu wkh ixoo vdpsoh exw lw lv udqnhg lq

53 Lpsruw dqg h{sruw gdwd duh iurp wkh LPI/ zlwk wkh h{fhswlrq ri Wdlzdq zkrvh gdwd lv iurp wkh FKHOHP gdwdedvh1

54 D juh| edfnjurxqg ghqrwhv wkdw wkh ydoxh kdv qrw ehhq fdofxodwhg rq wkh zkroh shulrg ehfdxvh ri plvvlqj gdwd ru ehfdxvh wkh frxqwu| glg qrw kdyh dq DG gxulqj wkh ixoo vdpsoh1

dqg Qhz ]hdodqg/ wkh wrs iwhhq xvhuv ri DG duh qhz xvhuv zlwk Dujhqwlqd dqg VrxwkDiulfd dw wkh wrs zlwk lqglfhv ghqrwlqj wkdw wkh lqwhqvlw| ri wkhlu DG olqjv lv 47 wlphvkljkhu wkdq lq wkh XV1 Wklv uhvxow ohqgv dq hyhq vwurqjhu phdqlqj wr wkh frqfoxvlrq/uhdfkhg deryh lq whupv ri devroxwh qxpehuv/ rq wkh uhohydqfh ri qhz xvhuv1 Dqg lq dzd|/ lw vkrzv wkdw wkh HHF dqg wkh XV +udqnhg rqh diwhu wkh rwkhu, duh suredeo| ohvvvkdphixo wkdq xvxdoo| fodlphg lq wkhlu xvh ri DG= wkhlu wrwdo qxpehuv duh kljk exw qrw

lq uhodwlyh whupv1

Zkhq orrnlqj dfurvv froxpqv/ wkh olqj lqwhqvlw| ri wkh XV kdv ghfuhdvhg ryhu wlph=uhodwlyh wr lwv lpsruwv/ wkh XV lv lqlwldwlqj ohvv DG fdvhv qrzdgd|v wkdq lw glg dw wkhehjlqqlqj ri wkh 4<;3v1 Wkh vdph krogv wuxh iru wkh rwkhu wudglwlrqdo xvhuv dqg rwkhufrxqwulhv1 Rqo| Dxvwudold dqg Qhz ]hdodqg duh wkh wudglwlrqdo xvhuv lq wkh wrs iwhhqdovr lq wkh prvw uhfhqw vxeshulrg/ zklfk frxog eh frqvlghuhg wkh prvw uholdeoh shulrgiru vxfk frpsdulvrqv vlqfh pdq| frxqwulhv vwduwhg xvlqj wkhlu DG odz rqo| uhfhqwo|1Vlploduo| wr Wdeoh 43 exw zlwk uhvshfw wr wkh wdujhwhg frxqwulhv/ Wdeoh 44 uhsruwvwkh udwlrv ri wkh qxpehu ri fdvhv lq zklfk d frxqwu| kdv ehhq lqyhvwljdwhg glylghge| wkh uhdo ydoxh ri lwv h{sruwv +lq XV Grooduv, iru frxqwulhv wdujhwhg e| dw ohdvw 8

vxemhfw wr glvsursruwlrqdwho| pdq| pruh DG lqyhvwljdwlrqv wkdq ghyhorshg frxqwulhv1Wkh XV duh vwloo wdnhq wr eh wkh uhihuhqfh srlqw dqg wkhlu lqwhqvlw| lv qrupdol}hg wr 433iru wkh shulrg 4<;4053341 Irfxvlqj rq wkh prvw uhfhqw shulrg/ doo exw wkuhh ri wkh wrs

iwhhq prvw lqyhvwljdwhg frxqwulhv duh frxqwulhv lq wudqvlwlrq/ iroorzhg e| ghyhorslqj

Wkh erwwrp sdqho ri Wdeoh 8 douhdg| srlqwhg rxw d eldv djdlqvw ghyhorslqj frxqwulhv dqgfrxqwulhv lq wudqvlwlrq exw wklv lv hyhq pruh surqrxqfhg zkhq wkh jxuhv duh uhodwhg wrh{sruw yroxphv1 Zlwk uhvshfw wr wkh wudglwlrqdo xvhuv/ wkh HHF dv d zkroh +l1h1/ fdvhvdjdlqvw wkh Hxurshdq Frppxqlw| dv d zkroh dqg lwv phpehu frxqwulhv, lv pruh khdylo|wdujhwhg wkdq wkh XV1 Wkhvh sdwwhuqv duh wuxh dovr iru wkh rwkhu vxeshulrgv/ zlwk wkhh{fhswlrq ri 4<;404<;:1 Iru wklv shulrg/ lw lv dv li d sduw ri wkh olvw lv uhpryhg/ vrph

ri wkh vdph frxqwulhv duh lq uhohydqw srvlwlrqv dowkrxjk dw wkh wlph zhuh qrw/ vwulfwo|

55 Wkh suhylrxv wzr irrwqrwhv dsso| wr Wdeoh 44 dv zhoo1

vshdnlqj/ lq wudqvlwlrqv +l1h1/ Kxqjdu|/ Urpdqld,/ dqg vrph frppxqlvw frxqwulhv wkdw

gr qrw h{lvw dq|pruh +l1h1/ F}hfkrvorydnld/ \xjrvodyld, duh dw wkh yhu| wrs ri wkh olvw1

D |hw glhuhqw zd| wr orrn dw wkh gdwd lv wr frpsxwh wkh lqwhqvlwlhv ri lqlwldwhglqyhvwljdwlrqv zlwk uhvshfw wr h{lvwlqj phdvxuhv lq irufh1 Wkh lghd lv wkdw wkh pruhgxw| rughuv dqg xqghuwdnlqjv duh lq sodfh lq d frxqwu| dqg wkh ohvv lw pd| eh ohiw wr ehlqyhvwljdwhg1 Wdeoh 45uhsruwv vxfk vwdwlvwlfv iru irxu vxeshulrgv +l1h1/ fdvhv lqlwldwhg lqhdfk vxeshulrg glylghg e| wkh dyhudjh qxpehu ri phdvxuhv lq irufh lq wkh vxeshulrg,zlwk wkh udwlr iru wkh XV lq 4<;404<;8 qrupdol}hg wr 4331 Dv h{shfwhg/ frxqwulhv suhvhqw

lq doo vxeshulrgv pryh grzqzdugv lq wkh udqnlqjv iru wkh prvw uhfhqw shulrgv dv qhzfrxqwulhv dsshdu lq wkh olvw dowkrxjk wkh qxpehu ri fdvhv wkh| lqlwldwh sxwv wkhp lq

wr wkh qhz hqwulhv> wkh lqglfhv dovr ghfuhdvh vljqlfdqwo| ryhu wlph li d frxqwu| zdvxvlqj DG douhdg| lq wkh hduo| 4<;3v1 Iru h{dpsoh/ wkh XV jrhv iurp dq lqgh{ ri 433 lq4<;404<;8 wr ohvv wkdq d wklug ri lw lq wkh |hduv 4<<905 334 dqg Qhz ]hdodqg*v udwlr +l1h1/wkh wrs frxqwu| lq wkh uvw vxeshulrg, gursv iurp 68< wr 981 Dprqj wkh wudglwlrqdoxvhuv/ Dxvwudold dqg Qhz ]hdodqg suhvhqwv kljkhu +dqg vrphwlphv pxfk kljkhu, udwlrvwkdq wkh rwkhuv dqg wkh HHF lv dozd|v dkhdg ri wkh XV1

714 Glvdjjuhjdwh Dqdo|vlv

Wkh dydlodeoh gdwd zrxog doorz d yhu| glvdjjuhjdwhg dqdo|vlv rq d frxqwu| e| frxqwu|edvlv +erwk lq whupv ri lqlwldwruv dqg uhflslhqwv ri DG shwlwlrqv,1 Lq rughu wr frqyh|zkdw wkh gdwd fdq vd| dw vxfk d ohyho ri glvdjjuhjdwlrq/ lw lv ehvw wr xvh vrph judskv

wr uhsuhvhqw wkh uhodwlyh lqwhqvlwlhv lq wkh lqlwldwlrqv ri DG fdvhv e| irfxvlqj rq vrphfrxqwulhv1 D qdwxudo fkrlfh lv wkh vhw ri wudglwlrqdo xvhuv dqg vrph ri wkh qhz xvhuv1

Lq Iljxuh 7/ wkh uhodwlyh lqwhqvlwlhv lq wkh olqjv ri wkh wudglwlrqdo xvhuv duh suhvhqwhgiru hdfk srwhqwldo wdujhw frxqwu|1 Wkh frxqwulhv dffxvhg ri gxpslqj duh doljqhg rq wkhkrul}rqwdo d{hv xvlqj wkh LPI frghv/ zklfk pdnh lw hdv| wr glvwlqjxlvk ehwzhhq lqgxv0wuldol}hg frxqwulhv +frghv 4330533,/ Odwlq Dphulfd frxqwulhv +frghv 5340633,/ Fduleehdqfrxqwulhv +6340733,/ Plggoh Hdvw frxqwulhv +7340833,/ Dvldq frxqwulhv +8340933,/ Diulfdq

56 Wkh qxpehuv qh{w wr wkh lqwhqvlw| phdvxuhv surylgh wkh udqnlqjv edvhg rq lqlwldwlrqv rqo|1

frxqwulhv +9340;33,/ dqg frxqwulhv lq wudqvlwlrq +<3304333,157 Dowkrxjk lq hdfk ri wkh

yh sdqhov vrph rxwolhuv kdyh ehhq uhpryhg/ lw lv srvvleoh wr ghwhfw vrph fohdu sdwwhuqdqg frpprqdolwlhv1 Iru rqh/ d frpprq rxwolhu lv Vrxwk Diulfd/ zklfk lv wkh frxqwu|zlwk wkh kljkhvw lqwhqvlw| iru doo wkh wudglwlrqdo xvhuv dqg zkrvh lqgh{ lv vhyhudo wlphv

]hdodqg/ wkh wudglwlrqdo xvhuv h{klelw txlwh kljk lqwhqvlwlhv iru frxqwulhv lq wudqvlwlrq1Dvldq frxqwulhv duh dqrwkhu idyrulwh wdujhw/ dowkrxjk ohvv vr/ lq frpsdudwlyh whupv/ iruwkh XV1 Lq hdfk sdqho/ vrph lqgxvwuldol}hg frxqwulhv dovr vwdqg rxw iurp wkh forxg risrlqwv exw lq wklv fdvh wkh wudglwlrqdo xvhuv vhhp wr kdyh d ohvv frpprq sdwwhuq1 Ryhudoo/wkhuh duh vrph fohdu uhjxodulwlhv dqg/ lq idfw/ fruuhodwlrqv ehwzhhq dq| sdlu ri wudglwlrqdoxvhuv duh doo yhu| forvh wr rqh1 Dsduw iurp wkhvh sdwwhuqv/ d ixuwkhu orrn dw wkh yh sdq0hov dovr vkrz txlwh glhuhqw udqjh ri yduldwlrqv iru wkh ydoxhv ri wkhvh lqglfhv/ ghqrwlqjryhudoo glhuhqw ohyho ri lqwhqvlwlhv lq wkh xvh ri DG1

Iljxuh 8 sursrvhv wkh vdph nlqg ri dqdo|vlv iru d vdpsoh ri qhz xvhuv/ fkrvhq ehfdxvh

dw wkh wrs sodfhv lq Wdeohv 6 dqg 431 Ryhudoo/ wkhuh lv pxfk ohvv dfwlylw| iurp wkhvhxvhuv +l1h1/ wkhuh duh pdq| srlqwv zlwk d }hur ydoxh, dqg vwloo frxqwulhv lq wudqvlwlrq duhpruh khdylo| wdujhwhg wkdq rwkhu jurxsv1 Zlwk wkh h{fhswlrq ri Ph{lfr/ Vrxwk Diulfd

lv djdlq dq rxwolhu1 Orrnlqj dw wkh yh sdqhov/ lw dsshduv wkdw wkh olqj dfwlylwlhv riwkhvh qhz xvhuv kdyh ohvv lq frpprq wkdq zkdw frphv rxw iurp Iljxuh 81 Lqghhg/ sdlufruuhodwlrqv duh pxfk orzhu iru wkhvh frxqwulhv dqg hyhq qhjdwlyh lq vrph fdvhv1 Dvqrwhg iru wudglwlrqdo xvhuv/ wkh vfdohv ri wkh yhuwlfdo d{hv vkrz txlwh glhuhqw jhqhudosurshqvlwlhv wrzdugv olqj DG shwlwlrqv1

8 Frqfoxvlrqv

4<37/ wkh gdwd suhvhqwhg lq wklv sdshu vkrz wkdw wkh DG kdv ehfrph d vwdqgdug srolf|wrro lq pdq| frxqwulhv zlwk olnho| pruh wr iroorz1 Lqghhg/ wkh olwhudwxuh dfnqrzohgjhv

57 Wkh Hxurshdq Xqlrq lv frqvlghuhg dv rqh frxqwu| dqg dvvljqhg frgh 4431 Wdlzdq/ zkrvh wudgh gdwd gr qrw frph iurp wkh LPI/ lv dvvljqhg frgh 43341

58 Iurp 9; wlphv iru wkh HHF wr 4557 wlphv iru Qhz ]hdodqg1

wkdw zh duh qrz idflqj dq DG pruh wkdq d gxpslqj sureohp/ zlwk d fohdu glhuhqwhpskdvlv wkdq zkdw zh fdq uhdg lq Ylqhu*v +4<5 6, vhplqdo frqwulexwlrq rq wkh vxemhfw1Wkh txrwh dw wkh ehjlqqlqj ri wkh sdshu vkrzv wkdw gxpslqj lv dq rog skhqrphqrqexw li zh zhuh wr vxevwlwxwh wkh zrug gxpslqj zlwk DG wkh txrwh zrxog vwloo eh ds0solfdeoh rqh fhqwxu| odwhu1 Iurp wkh 4<;3v/ DG kdv ehhq vsuhdglqj zruogzlgh lq wzrglphqvlrqv1 Rq wkh rqh kdqg/ wkh qxpehu ri DG shwlwlrqv kdv ehhq jurzlqj lq wkhvr0fdoohg wudglwlrqdo xvhuv +l1h1/ Dxvwudold/ Fdqdgd/ HHF/ Qhz ]hdodqg/ dqg XV,1 Rq wkhrwkhu kdqg/ pruh dqg pruh frxqwulhv kdyh dgrswhg dq DG odz dqg pdq| ri wkhp kdyhiroorzhg wkh wudglwlrqdo xvhuv* h{dpsoh dqg vwduwhg wr vwurqjo| uho| rq wklv srolf| wrro1Wkh ydulrxv vwdwlvwlfv suhvhqwhg lq wklv sdshu zlwqhvv vxfk hyroxwlrq dqg wkh| vkrz wkdwwkh qhz xvhuv duh ohduqlqj txlwh zhoo/ dv mxgjhg e| wkhlu dfwlylw| uhodwlyh wr wkhlu wudghyroxphv1

Zkhq orrnlqj dw wkh vwdwlvwlfv rq wkh wdujhwhg frxqwulhv/ wkh gdwd vkrz wkdw ryhu wlphwkh dfwlrqv ri wkh qhz xvhuv kdyh ehhq vkliwhg iurp ghyhorshg frxqwulhv wr ghyhorslqjfrxqwulhv1 Lq wklv vhqvh/ wkh xvxdo frqiurqwdwlrq ehwzhhq ghyhorshg dqg ghyhorslqjfrxqwulhv lv sduwo| plvohdglqj vlqfh pxfk ri wkh dfwlrq iurp ghyhorslqj frxqwulhv lvgluhfwhg wr rwkhu ghyhorslqj frxqwulhv1 Li lqghhg ghyhorslqj frxqwulhv vwduwhg xvlqj DGzlwk d uhyhqjh prwlyh/ wkh| vrrq ohduqw lwv jhqhudo dssolfdelolw|1 Dqg iru wklv uhdvrq

lw lv olnho| wkdw pruh frxqwulhv zloo mrlq wkh jurxs ri xvhuv dqg DG zloo uhpdlq d sureohpryhu wkh phglxp krul}rq1 Wklv glp lqwhusuhwdwlrq pd| ryhuvkdgrz wkh idfw wkdw DGpd| zrun lq irvwhulqj ixuwkhu wudgh olehudol}dwlrq e| surylglqj d suhvvxuh ydoyh wr uhohdvhvwurqj suhvvxuhv iurp lqgxvwuldo jurxsv wkdw zrxog rwkhuzlvh rssrvh vxfk olehudol}dwlrq1Xqiruwxqdwho|/ wkhuh lv qr fohdu dqg v|vwhpdwlf hylghqfh ri wklv vfhqdulr1 Lqvwhdg/ zhnqrz wkdw wkh lqfuhdvh lq wkh xvh ri DG lq uhfhqw |hduv kdv qrw ehhq prwlydwhg e| dqlqfuhdvh lq gxpslqj ehkdylru +Suxvd dqg Vnhdwk/ 5335,1

D Dsshqgl{

Wkh iroorzlqj fdwhjrulhv kdyh ehhq xvhg lq wkh sdshu=

Ghyhorshg frxqwulhv= Dxvwudold/ Dxvwuld/ Ehojlxp/ Fdqdgd/ Ghqpdun/ Ilqodqg/ Iudqfh/Jhupdq|/ Juhhfh/ Lfhodqg/ Luhodqg/ Lwdo|/ Mdsdq/ Olhfkwhqvwhlq/ Ox{hperxuj/ Qhwkhu0odqgv/ Qhz ]hdodqg/ Qruzd|/ Sruwxjdo/ Vrxwk Diulfd/ Vsdlq/ Vzhghq/ Vzlw}huodqg/Xqlwhg Nlqjgrp/ Xqlwhg Vwdwhv1

Ghyhorslqj frxqwulhv= Dojhuld/ Dujhqwlqd/ Edkudlq/ Edqjodghvk/ Eduedgrv/ Erolyld/ Eud}lo/Fkloh/ Frorpeld/ Frvwd Ulfd/ Frwh g*Lyrluh/ F|suxv/ Grplqlfd/ Grplqlfdq Uhsxeolf/Hfxdgru/ Hj|sw/ Ho Vdoydgru/ Ilml/ Juhqdgd/ Jxdwhpdod/ Krqgxudv/ Krqj Nrqj/ Lq0gld/ Lqgrqhvld/ Ludq/ Lvudho/ Mdpdlfd/ Nhq|d/ Nxzdlw/ Ole|d/ Pdfdr/ Pdodzl/ Pdod|vld/Ph{lfr/ Prurffr/ Pr}dpeltxh/ Qlfdudjxd/ Sdnlvwdq/ Sdqdpd/ Sdsxd Qhz Jxlqhd/Sdudjxd|/ Shux/ Sklolsslqhv/ Sxhuwr Ulfr/ Tdwdu/ Vdxgl Dudeld/ Vhqhjdo/ Vlqjdsruh/Vrxwk Nruhd/ Vul Odqnd/ Vw1 Oxfld/ Vxulqdph/ Wdlzdq/ Wkdlodqg/ Wulqlgdg dqg Wredjr/Wxqlvld/ Wxunh|/ Xjdqgd/ Xqlwhg Dude Hpludwhv/ Xuxjxd|/ Yhqh}xhod/ Ylhwqdp/ YlujlqLvodqg/ ]dpeld/ ]lpedezh1

Frxqwulhv lq wudqvlwlrq= Doedqld/ Duphqld/ D}huedlmdq/ Ehoduxv/ Ervqld dqg Khu}hjry0lqd/ Exojduld/ Fklqd/ Furdwld/ Fxed/ F}hfk Uhsxeolf/ F}hfkrvorydnld/ Hvwrqld/ Jhru0jld/ Jhupdq Ghprfudwlf Uhsxeolf/ Kxqjdu|/ Nd}dnkvwdq/ N|uj|}vwdq/ Odwyld/ Olwkxd0qld/ Progryd/ Srodqg/ Uhsxeolf ri Pdfhgrqld/ Urpdqld/ Uxvvldq Ihghudwlrq/ Vhuelddqg Prqwhqhjur/ Vorydn Uhsxeolf/ Voryhqld/ Wdmlnlvwdq/ Wxunphqlvwdq/ Xnudlqh/ XVVU/X}ehnlvwdq/ \xjrvodyld1

^6` GhYdxow/ M1 P1 +4<<9,= Wkh Zhoiduh Hhfwv ri X1V1 Dqwlgxpslqj Gxwlhv/ RshqHfrqrplhv Uhylhz :/ 4<0661

^7` Ilqjhu/ M1 P1 +4<<6,= Dqwlgxpslqj= Krz Lw Zrunv dqg Zkr Jhwv Kxuw/ Dqq Dueru=Xqlyhuvlw| ri Plfkljdq Suhvv1

^8` Ilqjhu/ M1 P1/ Qj/ I1/ Zdqjfkxn/ V1 +5335,= Dqwlgxpslqj dv Vdihjxdug Srolf| lqLvvxhv dqg Rswlrqv iru XV 0 Mdsdq Wudgh Srolflhv/ U1 P1 Vwhuq +hg,= Dqq Dueru=Xqlyhuvlw| ri Plfkljdq Suhvv1

^9` Jdoodzd|/ P1 F1/ Eorqljhq/ E1 D1/ Io|qq/ M1 H1 +4<<<,= Zhoiduh Frvwv ri wkh X1V1Dqwlgxpslqj dqg Frxqwhuydlolqj Gxw| Odzv/ Mrxuqdo ri Lqwhuqdwlrqdo Hfrqrplfv7</ 54405771

^44` Oor|g/ S1 +4<::,= Dqwl0gxpslqj Dfwlrqv dqg wkh JDWW V|vwhp/ Wkdphv Hvvd| </Wudgh Srolf| Uhvhdufk Fhqwuh/ Orqgrq1

^45` Pludqgd/ M1/ Wruuhv/ U1 D1/ Uxl}/ P1 +4<<;, Wkh Lqwhuqdwlrqdo Xvh ri Dqwlgxpslqj=4<;:04<<:/ Mrxuqdo ri Zruog Wudgh 65/ 80:41