bocconi university / spring ‘11

Is@B Mag

SPRING ‘11 ISSUE2

JOIN US!Any student at Bocconi University can contribute to

the magazine and association. We have a wide range of sections and roles, so whatever you’re interested in, you

can work with us.No previous experience is needed, so even if you

haven’t done anything like this before, you can get involved!

THE IS@B TEAM

PRESIDENTSara Polatti

VICE-PRESIDENTAnna Clover

TREASURERGianmarco Angelini

MARKETINGGiuseppe Volpato

Riccardo Rattellini

TRIPSClaudia FraccalvieriClaudia Todeschin

EVENTSDominique Ferrario

SPORTS OFFICERSDani Pires

Thomas KlocanasAlessandro Bottarelli

MAGAZINE

EDITOR-IN-CHIEFValentino Piu

CHIEFCamilla Gai

DESIGNERSKarina AmelieCarla Valeanu

EDITORS:

CURRENT AFFAIRS Karina Amelie

ARTS & CULTURENicole Colmenares Pulido

CAMPUS LIFEElena Mirova

CONTRIBUTIONS:Giulia Gustinucci

Karl JamesAleksandra Popovska

Flavia ParpalaDanny Mavrodieva

Felipe AthiaRustam Jamilov

Neri Tollardo

MASTHEAD

Donate at WWW.REDCROSS.ORG or TEXT REDCROSS

to 90999 to donate $10 from your phone

Cover Artwork byNick Gentry

3SPRING ‘11 ISSUE

CONTENTS

SPRING 2011 ISSUE CURRENTAFFAIRS

ARTS&CULTURE

CAMPUSLIFE

4. LES FLEURS DU MAL 5. INTO THE FOLD 6. BERLUSCONI, the true “RUBACUORI” 7. THE DROWNING WORLD 12. GEKKONOMICS 13. ALTER-TALK

8. MUSIC TO FEED YOUR SOUL 9. MANGIARE...THE ITALIAN WAY 9. TRAVEL WITH IS@B 10. MILANO BY NIGHT

10. MILMUN 2011 11. FROM SINGAPORE...WITH LOVE

SPRING ‘11 ISSUE4

CURRENT AFFAIRS

LES FLEURS DU MAL

The Chinese government cannot stand the feeling of agitation and restlessness so typical in the spring.

That frantic feeling that ‘there’s something in the air’ makes Beijing flush and scratch with no relief. The Chinese government is allergic to spring flowers, particularly “jasmines.” The series of allergy attacks initiated on February 20th, when ‘Boxun’ (U.S. based Chinese language blog), and Twitter users invited people to gather every Sunday in more than forty Chinese cities to take part in a homegrown “Jas-mine Revolution” inspired by the upheav-als in North Africa and Middle East. The anonymous ‘Chinese Jasmine Revolution Initiators’, give regular updates to instruct on the locations and ‘etiquette’ of these non-violent Sunday afternoon strolls. The first ‘tweets’ asked participants to assemble in central areas, chant slogans and carry jasmine flowers. Consequently, appeals took a more prudent turn and recommended that demonstrators should simply come out and walk around smiling. There was no longer a need for shouting or written slogans, because “…as long as you are present, the authoritarian govern-ment will be shaking with fear”. On the 13th of March, the fourth “Jasmine Sunday” of China, there were more police than regular citizens on the streets. Many foreign journalists were detained for hours and it was virtually impossible for most of them to get the media permission and report in the hot spots of the main towns. They struggled to remain incognito, wearing hats and hiding to film the protests in Beijing and Shang-hai. The internet is constantly monitored and words such as “Jasmine”, “Egypt”, and “Huntsman” (the American ambas-sador in China) are temporarily censored.

Governmental hackers obstructed several websites and social networks causing dif-ficulties in their functioning and showing messages of error each time something “revolutionary” was typed. Crowded urban areas were moni-tored by helicopters and SMS service has been cut off. As a finishing touch, jasmine flowers have been banned in flower shops.Police have detained or placed under house arrest dozens of well-known dissi-dents and activists since calls for protests began last month. They have charged at least twenty people with incitement to subvert state power or other crimes linked to supporting or spread-ing information on the rallies, according to the Hong Kong-based ‘China Human Rights Defenders.’ In the official version there is no trace of a rebellion. Party media keep feigning “dead calm” and emphasiz-ing national stability. Yang Jiechi, China’s foreign minister, denied that any police tried to attack international journalists. She claimed that the government is acting to provide protection and convenience for reporters and asked collaboration from the foreign press. China is ranked 171st out of 178 coun-tries on the Reporters Without Borders list of Enemies of the Internet; collaboration in this case would mean the conspiracy of silence. Authorities show no worries about a concrete fu-ture development of this “little democratic fire”. They declared

that “It is the Chinese people’s common aspiration to safeguard social and political stability, and promote social harmony.” In other words, they claim that the people of China do not want a revolution and are perfectly content. Now the problem is in dis-tinguishing safeguard from compelled sacrifice. The State claims that the “revo-lution” was started by fanatics of twitter than by an actual shake from the inside, and it is bound to fail. The current situa-tion is a sign that the desire for protection of rights is blooming under the weak sun.

The Party is terrorized by the flowers, and by their potential fruits. This opening up to the world put the social stability of the country in crisis and one begins to wonder how long the government tactics of hysterical censor-ship and technological seclusion would be able to constrain a people’s

revolution. Come hell or high water, from now on, the jasmine tea so popular in chi-nese homes will delicately smell like the rise of consciousness and awareness..

-GIULIA GUSTINUCCI

“…AS LONG AS YOU ARE PRESENT, THE AUTHORITARIAN

GOVERNMENT WILL BE SHAKING WITH

FEAR...”

5SPRING ‘11 ISSUE

Iran claims its nuclear program is for peaceful purposes only. This is probably not the whole truth, yet Iran’s nuclear pro-gram is inevitable. The world must accept it and move on.

First, a brief history of Iran post WWII. In 1951 Mohammad Mosaddegh (a secular social-dem-

ocrat) became prime minister, and focused on introducing sweeping social reforms and nationalising Iran’s oil, thus making him incredibly popular at home, but incit-ing the ire of the British who had con-trolled and exploited Iran’s oil. With the election of Dwight Eisenhower in 1952, the British convinced the US to help them overthrow Mosaddegh (so much for the US and Britain’s ostensible love and support of democracy). In 1953 ‘Operation Ajax’ was launched by the CIA and Mosaddegh was imprisoned, and then placed under house arrest for the rest of his life. The Shah, Mohammad Reza Pahlavi, became increasingly autocratic and oppressive with US and British support. This led to his overthrow in 1979 and replacement by Ayatollah Ruhollah Khomenini, giving birth to the modern Islamic Republic of Iran. Thus, the US and its allies have only themselves to blame for the anti-western sentiment of Iran’s ruling class. Regardless of who is to blame for the current situation in Iran, the question that remains is how the supposed Iranian nuclear threat can best be contained. There is much debate in the world revolv-ing around Iran’s nuclear program. Nearly all of it (at least that which is spoon fed to the public by the western media) revolves around finding a way to stop it. This is impossible. Even targeted air strikes by American and Israeli forces would merely

lead the Iranians to tunnel deep into large mountains,

something they have already started to do. Sanctions will only drive the Iranians to trade their precious mineral resources to countries that have no qualms with Iran and have much to gain through a close economic relationship (e.g. China). Nothing short of an invasion (which would be lacking in legitimacy) would stop Iran. Given that after numerous years the US military is struggling to control Iraq and Afghanistan (combined population 60 million), the idea of invading a far richer and better resourced population of 77 million with close ties to the world’s next super-power seems nothing short of suicide. Not to mention that doing so would antagonise the Iranians for generations to come, including those who support greater inte-gration with the west. What can the world possibly do then? In this author’s opinion the solu-

tion is simple – Iran must be engaged. Those shouting that Iran is run by crazy Muslims hell bent on blowing Israel into the sea are either ignorant or outright racist. The simple fact is that any nuclear strike would need the support of the military whose entire existence revolves around self-preservation. Therefore any Iranian nuclear strike, on Israel for exam-ple, would lead to swift retaliation and the obliteration of Iran.

Nevertheless, Iran’s ruling class are anti-west and vehemently anti-Israel, but they are not clinically insane and have no intention of launching a strike on any-one. Even if they did, they would know that doing so would result in their annihi-lation. Logic dictates that the MAD (mutu-ally assured destruction) theory would hold them at bay, which is exactly what happened during the Cold War. In reality, Iran seems intent on acquiring nuclear weapons for the same reasons that every other country has sought to gain them – as a deterrent to any possible invading force. If Iran were to acquire the bomb, countries like America could no longer threaten them with military action, and consequently increase their autonomy and bargaining power. This is something that the US and its allies don’t want, preferring instead a subservient Iran. The EU can be seen as an example of how with the right attitude, a nation can be swayed towards a desired outcome. Following WWII, it was agreed upon that only closely intertwined economic links would free Europe from the bonds of eternal warfare. The result is within just a couple of generations, a peace was so deeply engrained in Eu-rope’s psyche that the idea of France and Germany going to war seems as absurd as that of a child building a rope ladder to the moon. With time, Iran may come to be a moderate state through pressure both externally and above all internally. In the meantime, Iran must be engaged both economically and politically in order to ensure a stable and lasting peace. Iran needs to be shown why peaceful engage-ment with the West is in its own best in-terests. Iran has to be treated as a serious player on the world stage, instead of being threatened with punishment. It is time for Iran to be brought into the fold..

CURRENT AFFAIRS

INTO THE FOLD

-KARL JAMES

“In the meantime, Iran must be engaged both eco-nomically and politically in order to ensure a stable and

lasting peace.”

SPRING ‘11 ISSUE6

BERLUSCONI:THE TRUE“Rubacuori”

-ALEKSANDRA POPOVSKA

CURRENT AFFAIRS

Love him, or hate him. There is no place for indifference when it comes to one of the most powerful, if not the most powerful, rich and controversial individuals in

Italy, Mr. Silvio Berlusconi. The prime minister is owner of Mediaset, which broadcasts the three most watched channels in Italy, owner of the world famous football team AC Milan, publishing house Mondadori (through which he controls sev-eral popular newspapers), and many other companies we may or may not know.

If foreigners wonder what is it that makes Italians continue voting for him, despite the long list of scandals, trials, and the unhealthy economic situation of the country, Mr. Berlusconi himself once provided the answer in a television show: “Most Italians would like to be like me and they support my behaviour”.

Antonio Amadori, an experiential psychologist and author of a book on Berlusconi, “Mi Consenta” (Allow Me), has another explanation: “Asking why he does things is like asking why Jerry Lewis does things. This is who he is. He is theatrical and believes in his own charisma and abilities to improvise.” Many Italians would agree that their prime minister is a strik-ingly charismatic person, a great businessmen and a politician who likes to bring in a decent dose of humor in the otherwise serious political setting. Others believe that Italy is gradually following the path that Venezuela is undergoing with its highly, perhaps excessively influential president, Hugo Chavez, through Berlusconi’s ability to change the law to his benefit whenever the occasion asks for it.

The recent scandals with the Moroccan belly dancer Ruby, a.k.a. Ruby Rubacuori, with whom he’s accused of hav-ing had a paid affair while she was still underage, have just recently appeared to be one of the many threats to his. His an-swer to those who accuse him of supporting prostitution are, “I have never paid a lira, a euro for sex. I say this also because, for those who love to conquer, the joy and the most beautiful satisfaction are in the conquest. If you have to pay, I ask you, what joy is there?”

Thanks to Mr. Berlusconi, Italy is still in good relations with The United States and Russia. Newspapers write, critics comment, people read and eve-rybody in the world is reminded of the flamboyant nature of the Italian Prime Minister, and “Italy, country of the sun” as he himself described it in a meeting

in the European Parliament.

Nevertheless, Silvio Berlusconi’s aura seems un-touchable. From what the media showed there were very few people who did not feel sorry for him when he was intention-ally hit with a small statue of the ‘Madonnina’. There are few people who do not know who Berlusconi is or have not smiled reading some of his statements. There are even fewer who would not wish to own the most watched channels in Italy, the best publishing house and bookshop Mondadori, AC Milan, at the same time leaving imprints in the history of Italian politics. Perhaps in the end, politics in Italy would be much more boring without such a figure and perhaps it is true what he said: Italians simply want to be like him. .

“Most Italians would like to be like me and they sup-

port my behaviour.”

SPRING ‘11 ISSUE 7

CURRENT AFFAIRS

Uncertainty hangs like a cloud over the future of the global and Ameri-can economy. Looking back a few

weeks, many experts predicted a quicken-ing recovery. Now tsunamis, radioactive plumes, Middle East revolutions, and new round of the European debt crisis along with a weakened US economy could de-rail a bounceback on a global scale. The global economy remains an adaptive animal, but the speed and efficiency of this adapta-tion is easily overstated.

The tsunami that struck Japan on March 11th swept up to 6 miles inland, destroying virtually everything on its way. Tens of thousands were killed, just as many are missing, and entire communities were completely wiped out. What is this disaster going to do to the 3rd largest economy in the world? At this point, it is esti-mated that this gigantic mountain of debt will break down to 7.5 million yen for every single citizen of Japan. So who is going to bail Japan out? Could this be the “tip-ping point” that pushes the Japanese economy over the edge and into obliv-ion? Following are 12 reasons painting Japan’s grim economic picture.

1. The Bank of Japan has announced that they have decided to flood the Japanese economy with 15 trillion yen. That is the equivalent of roughly $183 billion dollars. This is going to provide needed liquidity in the short-term, but it is also going to set Japan on a highly inflationary course. To mitigate this however, there’s been a very rare act of coordination among the world’s most important central banks in order to avoid an appreciation of the yen that would hurt Japanese exports and hinder their recovery from this disaster.2. Japan’s Nikkei 225 stock average de-clined by more than 10 percent in the past week. Although upcoming negative news might make investors increasingly bearish on the future of the Japanese economy, there has been a slight rebound with the stabilization of the nuclear situation. In Warren Buffet’s words, “extraordinary events offer a buying opportunity”, and one may see this disaster as the start of a rebound in the Japanese economy.3. Oil refineries all over Japan have been severely damaged or destroyed. Six refin-

eries that combine to process 31 percent of the oil for Japan have been totally shut down,. In addition, the fires at the Fuku-shima nuclear plant were extinguished with salty water,

causing po- tentially irreversible damage4. The damage to roads, bridges, ports and rail systems is estimated to be in the billions of dollars. The World Bank issued a report saying the damage from Japan’s earthquake and tsunami could amount to as much as $235 billion and that limited effects from the disaster will be felt in economies across East Asia. Japan’s GDP growth could be slowed as much as half a percentage point this year. The damage done to power lines and water systems is almost unimaginable. It is going to take many years to rebuild the infrastructure.5. Right now the flow of goods and services in many areas of northern Japan has been reduced to a crawl, and this is likely to remain the case for quite some time. More specifically, nuclear contami-nation of water will cause a slower trading volume in fish and many other foods.6. Japan’s nuclear industry is literally dead in the water at this point. The events that have transpired already have fright-ened people enough to cause a massive public outcry against nuclear power in

Japan.7. Japan is going to need even more oil and natural gas in the long run to replace lost nuclear energy production. Prior to this crisis, Japan derived 29 percent of its electricity from nuclear power. On the other hand, this disaster could be the

catalyst that might push the world economy towards more renewable

sources of energy. Although the time horizon is still very

long, many wind and solar power companies have

benefitted from the nuclear accident and saw their share price and prospects im-prove significantly.8. Japan is the second largest foreign holder of U.S. government debt, but that is about to change. Japan currently has about $882 billion in U.S. Treasury bonds

and they are going to have to liquidate

much of that in order to fund the rebuilding

of their nation.9. Many factories in Japan

are closing down at least temporarily. Nissan has shut

down four factories and Sony has shut down six factories.

10. The size of the insurance claims that will be filed may put in severe difficulty the insurance industry. 11. Japan’s budget deficit was already 9 percent of GDP even before this tragedy. This situation is likely to worsen as Japan might, in addition to selling their large holdings of foreign assets, resort to exter-nal financing. An increase in the deficit could increase the cost of debt and make the funding of the reconstruction increas-ingly expensive12. Japan’s national debt was already well over 200 percent of GDP even before this tragedy. How much farther into the danger zone can they possibly go? Right now there are more questions than there are answers, but what is clear is that the Japanese economy has just been dealt an incapacitating blow. The extent of the devastation is now becoming clear and many are now projecting that this will be the most expensive natural disaster in modern human history. Will Japan resur-face from this disaster strong and ready to rebuild? Only time will tell..

THE DROWNING WORLD-KARINA AMELIE

MOVIESINENGLISH//CINEMAMEXICOEVERYTHURSDAY

VIASAVONA,57www.cinemamexico.it

7/04 | MORNING GLORY

13.00-15.20-17.40-20.00-22.15

14/04 | THE RITE

13.00-15.20-17.40-20.00-22.15

21/04 | BLACK SWAN

13.00-15.20-17.40-20.00-22.15

28/04 | LOVE AND OTHER DRUGS

13.00-15.20-17.40-20.00-22.15

5/05 | THE NEXT THREE DAYS

13.00-15.20-17.40-20.00-22.15

12/05 | TRUE GRIT

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19/05 | RESTLESS

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26/05 | NO STRINGS ATTACHED 13.00-15.20-17.40-20.00-22.15

ARTS & CULTURE

SPRING ‘11 ISSUE8

Sónar Festival 2011June 16 - 18

Barcelona, Spain

Sónar is Spain’s mashup of music and film and video, all rolled into one big multimedia festival.Lineup includes Annie Mac, Boys Noize, Steve

Aoki, Trentemøller and Underworld.

Glastonbury Festival 2011June 22 - 26

Worthy Farm, Pilton, UK

The Glastonbury Festival is a whole world of its own. One of the biggest (they claim to be THE big-gest) in the world, the Glastonbury Festival is 900 acres of music and art and community. It has been around for 35 years, and shortly after it’s beginning,

it became a haven for hippies that were coming from celebrating the Summer Solstice at Stone-

henge. The lineup, so far, includes big names like Coldplay, U2 and Beyonce!

Creamfields Festival 2011August 27 - 28

Daresbury, Halton, Cheshire, UK

One of the world’s pre-eminent electronic music festivals, Creamfields has a history of names

like Chemical Brothers, Basement Jaxx, Gorillaz, Fatboy Slim, Groove Armada, Underworld, Outkast, Sasha, Jeff Mills and Paul Oakenfold. Creamfields remains a top destination for many electronic acts

around the world today.

CHEMICAL BROTHERS

04/06/11

Credited as being one of the few truly arena-sized electronic acts, they will be performing at Arena Concerti of Fiera

di Milano. More than just a concert, their shows mix high quality video performances with psychedelic lights, strobes and amaz-

ing music, a night you will hardly be able to forget.

ROCKINIDRHOFESTIVAL15/06/11

Does the possibility of seeing Foo Fight-ers, Flogging Molly, Band of Horses, I

Ministri, The Hives, Social Distortion and Iggy and the Stooges all together sound good enough for you?! Well then bring out

the devil’s horns and whatever you have that is black.

RIHANNA12/12/11

Tickets for Rihanna’s concert are selling out fast, so hurry up if you are dying to see

the flame-haired diva rock the stage.

JACKJOHNSON24/07/11

Those of you craving for relaxing acoustic guitar melodies on a warm summer night,

go see surfer-turned-musician straight from the beaches of Hawaii perform at Castello

Sforzesco.

FOO FIGHTERS14/06/11

MY CHEMICAL ROMANCE

03/07/11

MUSIC TO FEED YOUR SOUL

ARTS & CULTURE

CONCERTS SUMMER FESTIVALS

-NICOLE COLMENARES PULIDO

SPRING ‘11 ISSUE 9

SPRING ‘11 ISSUE10

ARTS & CULTURE

DA NOI 2Situated on a Naviglio Pavese (Via Giosue Borsi no 1), this place offers the largest and tastiest pizzas in town at really convenient prices. If you wish to try something different, it can offer almost any Italian dish: region specific pasta and a variety of meat based courses. At night it tends to get very full and loud, but generally speak-ing there is no need for reservation. The friendly staff will immediately accommodate you to a table. Do not leave be-fore trying their desserts! The coconut ice cream is one of the restaurant’s specialties.

GARAM MASALALooking for something more exotic in Milan? in Piazza 24 Maggio you will find one of the best Indian restaurants this city has to offer. The flavors and scents here will immediately make you think about Asia and send you on a spiritual trip to the far away In-dian culture. In case you are not a big fan of spicy dishes, I recommend the Butter chicken. It’s loved by all Europeans yet still different from anything you have tasted before; this dish will keep you wanting to come back. Not very light, but madly delicious, this dinner will require a lengthy walk, maybe to Colonne where you stop for a drink or two and end the night in a very pleasant atmos-phere.

NABUCCO If you plan to have din-ner out with someone special, Nabucco is the right choice. The res-taurant sets the perfect atmosphere: quiet, very relaxed, friendly and on top of all, it is located in the perfect area, Brera. This neighborhood of Milan has the typical little Italian streets and a very bohemian, artsy feel to it. The cuisine is excellent and includes some of the best risot-tos in the city. Deserts are prepared on the spot and food is accompanied by an excellent Chateu Briand.

Mangiare…The Italian way

-FLAVIA PARPALA

Finding a good place to eat in Milan can be both confusing and dangerous (if your search takes you to the wrong place). So here are some proposals for your gourmet alter-ego, while

taking into consideration the limits of the student budget. Enjoy!

TRAVEL WITH IS@B-ELENA MIROVA

Do you want to travel? I definitely want to, but some things like time, money, and friends to travel with are sometimes ‘scarce’ for a Bocconi student.

Fortunately for us, International Students @ Bocconi Trips Crew organize trips around Europe for everyone interested. You can find them and the events

that they organize on the IS@B Facebook group.How do they do it? First, they gather some information about the transportation;

the cheapest method is by bus. Then they rent a whole bus and split the price. It always turns out to be much cheaper travelling in a large group and renting a bus

instead of going in a smaller group and taking the train. Plus, there is the added benefit of getting to meet new people on the bus ride there and back.

When and where do they go? They take advantage of the flexible Bocconi schedule (as long as weather conditions are fair), and organize trips in the beginning of the academic year and during spring. The usual yearly trips include Oktoberfest, the

Bologna Chocolate Fair and The Carnival in Venice. There are two more trips coming up before the end of the academic year.

Upcoming destinations are: GARDALAND, an amusement park and a seaside trip to either

PORTOFINO or CINQUE TERRE.

MILANO BY NIGHT

Spring is here, and IS@B has a fresh lineup of night events beginning first

week after Easter holidays.

WEDNESDAYSAPERITIVO @ BAR BIANCO

Enjoy the island of fine drinks and deli-cious snacks in the heart of Parco Sempi-

one on warm summer nightswww.bar-bianco.com

FRIDAYSTHE BEACH CLUB

Brand new club opening in the San Siro area promises to be a sensational venue

this summer season

SATURDAYSKARMA

Seasonal opening of this outdoor club with one of the largest dancefloor areas sets

off the beginning of summer for Milan’s university students

www.borgoilkarma.it

FOR INFO, CONTACT DOMINIQUE+39 3407663464

SPRING ‘11 ISSUE 11

CAMPUS LIFE

Official Press ReleaseMilan International Model United Nations Association is delighted to announce that the 2011 MilMUN Conference will be held from

May 9th to May 13th, 2011 Università Commerciale “Luigi Bocconi” in Milan, Italy

The slogan of the MilMUN’s 2011 edition will be

“Reaching Sustainability and Empowerment Through Education”

Themed as a Social Conference, the primary focus of the event will be on some of the world’s most important social issues such as infringement on the right of expression,

ethnic conflicts, uses and abuses of the bailing out procedure and several more.The following United Nations bodies and committees will be simulated at the

MilMUN 2011 Conference:

UN Security Council UN Economic and Social Council UN Human Rights Commission International Court of Justice

Council of the European Union

The MILMUN Association is a non-profit organization that provides high quality political education, intercultural exchange and career guidance with a global perspective.

These goals are achieved through an academic simulation of selected United Nations

bodies in annual Model United Nations conferences as well as the organization of relevant training courses and lecture events, organized by students of Milanese univer-

sities.

Gianpiero AufieroConference Manager

Milan International Model United Nations 2011

www.milmun.org - info@milmun.org

CAMPUS LIFE

13th March, 6:45pmPhuket airport:While I am waiting for my flight to Singa-pore, my mind goes through all the great memories from this short trip to Thailand. It was a weekend full of natural beauty, delicious spicy meals, mouth-watering fruits and turquoise-water beaches. However, before I tell you more let me go back three months ago and explain how it all started. I left for my exchange program to Singapore right before Christmas full of curiosity, excitement and a bit of fear. It was so far away, it was supposed to be dif-ferent, it was supposed to be new in every single aspect – people, culture, climate, food… and indeed it is.

Arriving in Singapore on Christ-mas may not sound very attractive but the hot weather and the crowds of happy ex-change students make you so excited that you forget that you are far from home. The new experience starts from day one. At the Orientation Day in SMU we were warmly welcomed and warned by the following: Singapore is a big “No No City”. Literally there is a fine for everything – eating or drinking in public transport or crossing where you are not allowed to can cost you 500S$; chewing a gum is strictly forbid-den; getting involved in any kind of drug abuse results in death penalty. After this first lesson we were sent with the phase “Enjoy!” Despite those heavy fines I can guarantee that Singapore is one of the best places to choose for an exchange pro-gram. Spending New Years Eve at Sentosa Beach is definitely a good start of 2011. Putting your toe in the amazing pool in

Marina Bay Sands or drinking a cocktail on the open-roof party in the Swissotel qualifies as a truly exclusive experience and yet there is much more to that.

Weeks in Singapore are very short for exchange students. We have 3 to 4 intense days to spend in the university, go to classes, read papers, do our home-work, and spend on average 2 to 3 hours in a group meeting. The rest is reserved for trips! Groups of exchange students head towards various parts of South-east Asia every single week to experience dif-ferent culture, gaze at the most amazing nature and savor delicious meals and fresh tropical fruits. Choose Thailand for its party-type Phi Phi island and the best banana pancake ever, go to Indonesia for an exotic Avocado shake, drop by Kuala Lumpur to train your bargaining skills on its street markets. Definitely, the “must-go” place is the Philippines where the untouched nature in El Nido takes your breath away and makes you feel you saw the paradise. So as an exchange student you have to be prepared to travel a lot!

However, student life here is not only about trips and parties; the educa-tional experience also is totally worth it. Classes in SMU are small, very interac-tive and intense, complemented by heaps of readings and projects. The chance to experience different methods in teach-ing and professor-student interaction is valuable and enriching. In addition, it is so good to go to class while students play Rihanna and Eminem along the university corridors, to drop by the SMU fully-equipped gym or swimming pool for

a fresh start of the day and finish the long daily studying process in the 5-storey library reading on a sofa and drinking cof-fee or tea. Quite different from Bocconi, isn’t it?

In the end, however, beyond the studying and the partying, it is the overall cultural experience that matters. Diversity is all around. You can simply go to Little India, pass by Mustafa shopping centre and see Indians eating next to Arabs, Ar-abs next to Chinese and so on. Singapore is a true blend where the Far East culture reflected China town and Little India meets the western style of the financial district. Having the exchange students come from all over the world adds even more flavor. I truly enjoy every minute with my roommates who come from Ecuador, England and Russia and saying “Good night” in 4 different languages every evening has turned into our small tradition. In less than 3 months I made friends with people from across Europe; from Canada to Mexico and Brazil; from Vietnam, through Singapore to Australia and we all share the same excitement about being here.

...7:30pmPhuket AirportMy flight has just been called. It is time to go back and spend another hectic week in SMU. Not for long, though, because the next trip is already on schedule. Now I realize how wonderful it is to be busy with enjoying life!.

FROM SINGAPORE...WITH LOVE

DANNY MAVRODIEVA’S EXCHANGE EXPERIENCE

SPRING ‘11 ISSUE12

GEKK

ONOM

ICS

SPRING ‘11 ISSUE 13

To those not familiarized with the acronyms, BRICKs stands for the block of

emerging and fast-growing coun-tries composed of Brazil, Russia, India, China and Korea. By the same token, the PIIGS acronym stands for the block of advanced and sluggish economies in Europe composed of Portugal, Ireland, Italy, Greece and Spain. Since the turmoil caused by the financial crisis in 2008, countries have been struggling to recover

their growth and economic stability. Some, such as China and India, are doing surprisingly well and raise questions on whether the crisis was indeed a crisis, or just a bump on the road to prosperity. However, some countries, such as Ireland and Spain, face that bump like an old Fiat going up the Everest. In the past few decades, developing countries have been growing faster than advanced economies. During the big-gest economic challenge since the Great Depression, they suffered less and got back on track earlier, as we can see in the chart below.

The latest IMF Economic Outlook Update states: “the two-speed recovery continues”. That’s not entirely true. If we consider the world grew in a 5% average in 2010, when advanced economies performed better than expected at a 3% average, and emerging economies at a 7% average, where could we fit a

-0.3% Spain? -4% Greece? 10.4% China? 9.7% India? Among the PIIGS, Italy has the best performance; though that doesn’t mean much due to unemployment rate hovering around 9% and growth roughly at 1%. However, comparing to the 20% unemployment rate in Spain and -4% growth rate in Greece, it looks like pasta and 3-hour-siestas are a good combination after all. As for growth, aside those previ-ously mentioned, Portugal and Ireland presented in 2010, 1.1% and -0.3%, respectively. On the other side of the coin, there are the prosperous BRICKs coun-tries, led by China. In 2010, the Asian monster grew at a 10.4% rate, with a low unemployment rate of 4.1% and its infla-tion rate for the same period remained around 3.5%. Driven in part by strong capital inflows and a well-entrenched private demand, these economies show overheating signs and inflation starts to be a concern, especially for India, whose inflation peaked in 2010 (reaching over 13%, according with the IMF). In Korea and Russia, inflation rates aren’t concerning governments.

They were, respectively, 3.1% and 6.5%. Although the Russian rate seems high, it’s possible to observe a downward trend – rates were 14.1% in 2008 and 11.6% in 2009 – alleviating the pressure on the monetary authori-ties. In Brazil, on the other hand, the situation is more delicate: even though a 5.9% inflation rate doesn’t seem that harmful, it is way over the 4.5% target for 2010, and it is the highest

rate since 2004. The recent increase in the nominal interest rate – from 11.25% to 11.75% in early March – and a pos-sible new increase in the next CB meeting starts depicting that the inflation rate is a concern for Brazil. If unemployment rates are not disquieting in Brazil, Russia and Korea

– respectively, 7.2%, 7.5% and 3.3%, it’s not possible to postulate the same for India. Its unemployment rate of over 10%, jumping from a 6.8% in 2009, is starting to raise questions on the stability of the Indian economy. While over 40 million people are unemployed, the country grows at a steady 9.7% with no signs of slowing down: IMF forecasts indicate a growth rate over 8% until 2015. Likewise, Korea, Russia and Brazil probably will observe a considerable decrease on their growing rates, but will keep growing on a 4-4.5% rate until 2015. The growth for these countries in 2010 was, respectively, 6%, 4% and 7.5%. What exactly does this bunch of numbers and rates tell us? Is it a fair comparison? BRICKs versus PIIGS? I personally don’t think so. I don’t want to bore you with the dreadful theory behind it, but it is an unquestionable fact that developing countries are growing much faster than advanced economies. So what can we expect for the years to come?For the first block, we can expect steady growth, even though a decrease on the growth rates should be observed. China’s growth rate between 2011 and 2015 are supposed to be around 9.5%. How about our European low-performing friends? Well, once again, Italy is in the most comfortable shoes, yet it still doesn’t mean much. Unemployment rates remaining around 8% until 2015 isn’t that bad, but a droopy growth rate of 1% for the same period is. Forecasts point to double-digit unemployment rates in Portugal, Ireland, Greece and Spain until at least 2015.Their growth rates are supposed to remain sluggish. Besides Ireland, reaching 3.5% in 2015, these countries will grow in – best-case scenario – at an average of 2% until 2015. This is considerably below the 4.5% expected world average growth for the same period. It seems like the acro-nyms are here to stay for a while. OINK, OINK, OINK…

GEKK

ONOM

ICS BRICKS

vs.

PIIGS

A PRAGMATIC 2010 ASSESSMENT-FELIPE ATHIA

SOURCE: WWW.DEFENCE.PK

CURRENT AFFAIRS

SPRING ‘11 ISSUE14

Before we begin talking about the price dynamics by dissecting our beloved Fisher effects and Phillips curves, let

me just share an ironic incident which hap-pened to me in November while I was still in New Hampshire for my exchange program. My lyrical digression will turn out to be surprisingly relevant in the end.As some of you might recall, on Novem-ber 2nd the regular mid-term elections to Congress were held in the United States. I was writing my next article for “The Dartmouth,” the university’s student-run newspaper. The article presented a modest economic criticism of the recently passed healthcare bill, which essentially mandated public healthcare. This healthcare reform is the most significant piece of legislature the Democrats have passed in 50 years. I just happened to criticize it in my article, which just happened to be printed on the Election Day.The Democratic Party was thrashed by Republicans, and New Hampshire, a predominantly leftist and Democratic state, voted Republican. The Dartmouth is easily the most widely read publication on campus.

That article of mine had over 500 readers just on its online version. Could one single article have influenced the outcome of the whole state’s election in such a historical fashion? Isn’t this a representation of a structural shift in voting preferences that has been developing over several years, leading to this dramatic result? No. Yes.In the past 12 months, the prices on wheat have risen by 25%, dairy products by 5.5%, butter – 19%, corn futures – 90%! There are two points to this whole story on food prices. First, inflation in the food sector is extreme-ly detrimental for developing countries. For example, the majority of people in India are spending as much as 70% of their incomes on food. Second, inflation in just one sector doesn’t necessarily lead, in theory, to the “core” inflation. So, the rising price of food, while a concern in itself due to the direct welfare effects on the developing nations, does not necessarily signal any drastic movements in the overall economy. There are two possible arguments to this year’s debate on inflation. Some believe that the reason behind the rising prices is the financial crisis of 2008. Monetary expansion

was used to try to jump start the economy. The expanding monetary base naturally cre-ates an excess in the supply of liquidity in the long-run, which in normal words means inflation. Basically, the rising food prices and the overall fear of an inflationary envi-ronment in the next 5 years are temporarily caused by a single, although devastating financial collapse.However, the prices on food, just as the frustration of the people of New Hampshire over the Democrats’ inability to commu-nicate more efficiently and conduct more swift politics, have been rising consistently over the past decade! And there is plenty of economic data that supports this trend. Many economists have pointed at a more fundamental shift in the overall functioning of the food markets in the past 10 years. So, can the rising food prices be explained by a single, temporary macroeconomic shock – the 2008 financial crisis? Or is the underly-ing reason a structural shift in the demand and supply dynamics of the whole global food sector? No. Yes.

Alter-talk:An Alternative Perspective on Simple Things.

-RUSTAM JAMILOV

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Inflation is back!

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