tag:blogger.com,1999:blog-38860003986143975242024-03-14T05:33:39.710-07:00Perspectives on the Law of Business and EconomicsJoel Kwan is a corporate lawyer based in Los Angeles, California. Currently acting as financial/legal associate for Westwood Group, a specialty finance company, Joel focuses on general regulatory compliance, creditor rights and structured finance. Visit his website joelkwan.ca to learn more.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-3886000398614397524.post-8277875976276561492013-12-19T20:55:00.000-08:002013-12-19T21:00:01.240-08:00Remettre le “M” dans l’OMC<div class="MsoNormal">
Je me
souviens bien que c’est lors de mon premier cours en relations internationales
économiques que j’ai décidé de poursuivre des études en droit et en commerce. J’avais étudié l’Organisation Mondiale du
Commerce (OMC) et son mécanisme de résolution des différends et cela avait
allumé une étincelle. Naïf et
optimiste, je croyais qu’une fois que mon ambitieux plan d’études de 10 ans
serait terminé, l’OMC serait devenu <i>la</i>
référence en matière de droit du commerce international.</div>
<div class="MsoNormal">
<span lang="FR-CA"><br /></span></div>
<div class="MsoNormal">
<span lang="FR-CA">En réalité,
l’OMC a vécu une décennie de léthargie tout au long de mes études
universitaires. Entre 2003 et 2013, le
cycle de négociation de Doha, qui avait comme but de poursuivre le projet de
commerce libre mondial tout en favorisant l’équité pour les pays en
développement, a subi un blocage important.
Pendant ce temps, les pays membres se sont tournés vers des ententes
bilatérales et multilatérales au profit des ententes de l’OMC englobant tous
les pays membres.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="FR-CA"><br /></span></div>
<div class="MsoNormal">
<span lang="FR-CA">Mais un
nouveau souffle est venu pousser dans les voiles de l’OMC. Le 7 décembre 2013, les pays membres de l’OMC
ont conclu le cycle de négociation Doha, soit 12 années après le début des
pourparlers. Un des principaux enjeux
qui empêchait le cycle Doha d’avancer était celui des produits agricoles. D’un côté, les pays membres en développement
avec une économie dépendante sur l’agriculture exigeaient certaines concessions
pour continuer à protéger leurs industries.
D’une autre part, les pays développés hésitaient à abaisser le niveau de
subvention de leurs producteurs agricoles, un sujet hautement politique. Finalement, les parties se sont entendu sur
la continuation temporaire des concessions pour les pays en développement.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="FR-CA"><br /></span></div>
<div class="MsoNormal">
<span lang="FR-CA">L’entente
prévoit aussi la « facilitation commerciale » (ma traduction en
attendant la version française officielle de l’OMC) ce qui simplifierait les
procédures de dédouanage avec l’objectif de réduire les coûts associés à
l’importation et l’exportation.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="FR-CA"><br /></span></div>
<div class="MsoNormal">
<span lang="FR-CA">Cette
entente annonce aussi un retour bien attendu vers le commerce international qui
avait ralenti d’une façon marquante depuis la crise financière de 2008. Il est plus logique de convenir sur des
règles internationales sur l’échange entre pays pour deux raisons principales. Premièrement, les ententes entre les pays
membres de l’OMC sont plus bénéfique économiquement que les ententes
bilatérales et multilatérales. Les
ententes ad-hoc sont intrinsèquement exclusive en discriminant les tiers qui ne
font pas partie de l’entente alors que les négociations de l’OMC engagent tous
les membres. La discrimination en
matière d’échange commercial va à l’encontre même des principes fondateurs de
l’OMC. Deuxièmement, l’accroissement des
ententes ad-hoc crée l’effet « spaghetti »; un cauchemar logistique
avec des règles tantôt redondantes et tantôt en conflit. Avec tous ces ententes çà et là, il est plus
difficile de voir clair et de maximiser les gains de l’échange commercial.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="FR-CA"><br /></span></div>
<div class="MsoNormal">
<span lang="FR-CA">La fin du
cycle de négociation Doha apportera une certaine crédibilité qui arrive bien à
point pour une institution mondiale qui semblait perdre l’effervescence de ses
débuts depuis 1995.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="FR-CA">Il reste
encore beaucoup de travail à faire pour que l’OMC devienne la sommité en
matière d’échange commercial international, mais pour l’instant mon côté
optimiste et naïf est satisfait.<o:p></o:p></span></div>
Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-19891483994193620612013-12-09T12:45:00.001-08:002013-12-09T12:52:21.971-08:00Comparing NAFTA and CETA<div class="MsoNormal">
On October 18 2013 the European Union and Canada reached an
agreement in principle concerning the Comprehensive Economic and Trade
Agreement (CETA). The Canadian
government has yet to release the text of the agreement, but has released a
technical summary upon which this commentary is based.<o:p></o:p></div>
<div class="MsoNormal">
CETA is seen as the most ambitious and far-reaching
agreement since the North American Free Trade Agreement (NAFTA) between Canada,
US and Mexico. NAFTA has been implemented
for nearly 20 years so there is much written about its after-effects. <o:p></o:p></div>
<div class="MsoNormal">
Here is how NAFTA matches up to CETA.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Trade in Goods</b><o:p></o:p></div>
<div class="MsoNormal">
A central component of a free trade area (FTA) is the
reduction of trade barriers between countries.
Trade barriers can be in the form of quotas, tariffs or non-trade
barriers (could be technical standards used as barriers). <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
While NAFTA planned for a phasing out of most barriers in a
15 year time frame, CETA sets this phasing out period at seven years for the
most sensitive goods. To have an
indication of the speed of the phasing out, over 95% of all goods are to face
no tariffs upon entry into force of CETA.
With NAFTA, the process was much slower and haphazard. For example, only
40% of goods faced tariffs of 0% between Mexico and the US when NAFTA came into
force. Further, piece-meal deals between
the three countries had to be reached in order to further lessen trade
barriers. CETA on the other hand is more
comprehensive and tends to treat the EU as one economic entity (as it should)
which eliminates the need for side deals.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
CETA also seems to have an upper hand in terms of reducing
barriers for agricultural goods, normally an issue of great contention between
trade partners. In fact, World Trade
Organization trade talks between member countries have been constantly failing
in large part due to failure to arrive at a compromise on agricultural
goods. CETA is set to have most
agricultural goods trade freely between the EU and Canada within seven years. NAFTA was not as successful on this count
since the tripartite side deals concerned sensitive agricultural goods.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
One interesting aspect of CETA are the rules of origins that
favour the use of foreign components.
Rules of origins are used to determine the country of origin of the
traded goods. If a good is deemed to be
produced outside the FTA, then tariffs may be levied. Without getting in the nuts and bolts of
rules of origin, suffice it to say that CETA would allow auto components that
only have 45% Canadian content to count as a good produced in Canada. In contrast, NAFTA required a domestic
content of 62.5% at entry into force.
Auto manufacturers would claim that this will erode domestic business
and jobs while third-party foreign manufacturers could see this as an indirect
way of benefiting from CETA.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
One important distinction between NAFTA and CETA is the FTA
between Canada and US that existed before NAFTA. Many observers note that Mexico felt the
greatest economic effects from the agreement since Canada and US had already
extensively reduced trade barriers before NAFTA. This is not the case with CETA. Currently, Canada and the European Free Trade
Association (Iceland, Liechtenstein,
Norway and Switzerland) have an agreement to reduce the tariffs on goods. This represents only a fraction of the EU
economically and much less comprehensive than a FTA. Consequently, there are chances that the
economic effects of CETA be felt more rapidly and be more important than with
NAFTA.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Another important difference is the economic climate of
Canada. When NAFTA came into force,
Canada’s manufacturing industry was much more powerful. Today, the manufacturing sector is sluggish
due to a Canadian dollar hovering at parity with the American dollar and NAFTA
which lifted the protectionist shield of uncompetitive manufacturers. Also, Canada’s resource-based economy is
stronger now than 20 years ago. As a
result, there is fear that Canada will be exporting natural resources to the EU
and in return, high-value finished goods will be imported. Critics of CETA warn that this could lead to
a growing trade deficit. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Trade in Services</b><o:p></o:p></div>
<div class="MsoNormal">
This area of CETA is much less ambitious. Compared to NAFTA, there is no surprise here with
the standard Most Favored Nation provisions and specific exclusions.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Labour Mobility</b><o:p></o:p></div>
<div class="MsoNormal">
While CETA boasts a framework that streamlines regulations
to allow mobility of professions between member countries, this is merely a
voluntary endeavor left at the discretion of the respective governing
bodies. It is unclear how this
initiative will boost mutual recognition of qualifications. NAFTA was slow on this issue, but as of 2008,
the three countries had agreed on the core competences of 64 professions in
order to issue NAFTA visas that allow workers to work temporarily in a member
country for up to three years. There
has already been some initiatives between Canada and the EU prior to CETA with lawyers and architects.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Trade in Investments<o:p></o:p></b></div>
<div class="MsoNormal">
Of interest here is a commitment in CETA to provide a
dispute-resolution mechanism that is transparent and in which interested third-parties
can part-take in. This diverges greatly
from NAFTA chapter 20 which provides for a closed dispute settlement mechanism
for foreign investors.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Intellectual Property
Protection<o:p></o:p></b></div>
<div class="MsoNormal">
NAFTA based its IP regime on the then TRIPS negotiations. Canada nonetheless has continued to be viewed
as weak in terms of IP protection. CETA contains nothing ground breaking in
terms of Copyrights and Trademarks, but there is a commitment to allow
pharmaceutical companies to restore up to two years of patent protections that
was lost by regulatory processes and also allow innovative pharmaceuticals (as
opposed to generic) to have a right of appeal for decisions made under the
Patented Medicines Regulations, a right that was only available to generic
pharmaceutical companies. This change is
welcomed and had been long awaited by pharmaceutical companies.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The final text of the agreement is set to be agreed upon in
2015. There will be a ratification and
implementation phase afterwards.
Therefore, it might be some time before the agreement comes into force. Compared to the NAFTA experience, the
economic effects of CETA on Canada should be expected to be greater since most
of the trade integration had been accomplished between US and Canada prior to
the tripartite agreement. One finding
from the NAFTA experience that was negative for Mexico was that the benefits
did not help narrow the gap between the rich and the poor. For CETA, it will be important to enforce complementary
policies on poverty reduction in the hopes that any gains from trade will be equitably
distributed, especially given that the EU is composed of 28 member states that
vary greatly in terms of economic development. <o:p></o:p></div>
<br />
<a href="http://www.actionplan.gc.ca/en/page/ceta-aecg/technical-summary">http://www.actionplan.gc.ca/en/page/ceta-aecg/technical-summary</a><br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkA-xJDpx09oAIxb2RhevtQpP5BZ513K9eR9NFRnm9OrMTcze3QPf1VpPv-0TT9uJKaAg4vvlIfStLZFMO_qE6XiNotMRF9UA0ruOwerZp4P1xSX2bL873Mi6E6oRSDm6myC2ytk9jZlw/s1600/ecec3ca9-3b90-4dae-ba86-a81ce8716157.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="215" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkA-xJDpx09oAIxb2RhevtQpP5BZ513K9eR9NFRnm9OrMTcze3QPf1VpPv-0TT9uJKaAg4vvlIfStLZFMO_qE6XiNotMRF9UA0ruOwerZp4P1xSX2bL873Mi6E6oRSDm6myC2ytk9jZlw/s320/ecec3ca9-3b90-4dae-ba86-a81ce8716157.jpg" width="320" /></a></div>
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Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-72049722028755992982013-12-01T22:24:00.002-08:002013-12-01T23:02:25.942-08:00Vers un nouveau système monétaire mondial?<br />
À l'occasion de l'ouverture de la succursale montréalaise de la Banque de la Chine, M. Guillaume Liu, Vice-Directeur – Préparation de la Succursale de Montréal, a donné une allocution sur l'internationalisation du Yuan, la devise chinoise. Selon M. Liu, le gouvernement chinois a comme objectif de voir la monnaie chinoise devenir la devise officielle d'échange pour le commerce international d'ici 2018.<br />
<br />
Pour apprécier la teneur de cet ambitieux projet, il est nécessaire de remonter à l'après-guerre, lorsque les pays victorieux étaient en pourparlers à la conférence Bretton-Woods pour développer un nouveau système monétaire. La priorité était de bâtir un système fiable et stable. Au terme des négociations, c'est le dollar américain qui fut adopté comme devise officielle.
L'entente entre les pays alliés prévoyait un taux de change rattaché au dollar américain qui était échangeable à un taux nominal de 0,35$ par once d'or. <br />
<br />
Conséquemment, les États-Unis s'engageait à échanger les dollars américains pour de l'or. Initialement, le système fut un succès: rapidement, le dollar américain est devenu un standard international en matière de commerce.
Stratégiquement, ce système s'avéra un avantage important pour les États-Unis. Puisque le commerce dépendait en grande partie sur le dollar américain, il était moins risqué, moins dispendieux et plus commode d'utiliser cette devise pour effectuer des transactions.
Cela permit le FED (la réserve fédérale américaine) d'imprimer une quantité importante de dollars sans souci de créer de l'inflation. D'autant plus, la statut de facto des États-Unis comme banquier du monde lui donna un poids politique important.<br />
<br />
Au début des années 70, catastrophe, les États-Unis ne peuvent plus supporter le système financier sans menacer l'économie domestique. Les marchés perdent confiance en la devise américaine et tous veulent l’échanger pour de l’or. Pour éviter que le système ne s’écroule, le président Nixon laisse finalement le dollar américain fluctuer librement sans être rattaché à la valeur de l'or.
La manœuvre de Nixon permit de sauver le système monétaire mondial, mais non sans conséquences négatives à l'interne.
Suite à la crise financière de 2008, un nouveau choque du système monétaire devient une possibilité réelle. Le dollar américain n'est plus aussi attrayant: dévaluation du dollar américain, économie interne faible et léthargie à la maison blanche sont de piètres conditions pour supporter une devise internationale.<br />
<br />
La Chine en tentant de se positionner comme banquier mondial à ce moment-ci joue bien ses cartes. Cependant, le gouvernement chinois est beaucoup moins confortable avec la prise de risque et élabore un stratagème complexe pour développer un nouveau système. Trois types de devises chinoises sont maintenant disponibles mais encore contrôlées de près par le politburo. Une devise strictement pour l'économie interne de la Chine, une qui peut être échangée contre le dollar Hong Kong à l'intérieur du territoire Hong Kongais et une troisième devise, virtuelle, utilisée pour estimer la valeur future de la devise échangeable à Hong Kong. Une politique centrale de ce système est l'appréciation du Yuan pour le rendre plus attrayant sur les marchés internationaux.
Éventuellement, l'objectif est de permettre le Yuan d'être échangé sur le plan international et de le rattacher à la valeur de l'or.<br />
<br />
Suite à la présentation fort éducative de M. Liu, quelques questions me sont restées à l'esprit. Premièrement, sans connaître tous les détails, il semble que ce système soit un retour au système Bretton-Woods. Suivant l'expérience américaine, il sera intéressant de voir si la Chine adoptera des contrôles pour éviter un choque tel qui celui de 1971.<br />
<br />
Deuxièmement, si le gouvernement chinois désire l'appréciation du Yuan pour le rendre plus attrayant, il sera nécessaire de faire le balancier entre l'économie internationale et l'économie interne car l'appréciation du dollar risque de relentir les exportations. Cependant, la Chine serait possiblement en transition vers une économie moins dépendante sur l’exportation, ce qui pallierait l’objectif d’un Yuan croissant.<br />
<br />
Troisièmement, contrairement à la situation de l'après-guerre, la Chine développe ce système unilatéralement sans consultation avec les autres grandes forces économiques du monde. Cela pourrait rendre l'objectif d’un Yuan international plus difficile à atteindre.
Dans tous les cas, plusieurs s’entendent sur le fait qu’il est temps de repenser le système monétaire mondial. Cela serait un devoir pour nos représentants de se pencher sur un enjeu déterminant pour des années à venir.<br />
<br />
BIENTÔT DANS UNE BANQUE PRÈS DE VOUS:<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfGl4trkOCRcS9eJWtKs8z7IhVdHgdrX4-sbjBocAVGauCDnUociSdgELOn3DY_cwg_xmn3WI-wr9xc-6PLU3SzT_fDV2yVqEIxTGtICEYjhSpzwNso2VQcRs2qfOhLqXFPQGK1hQHSpo/s1600/download.jpg" imageanchor="1"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfGl4trkOCRcS9eJWtKs8z7IhVdHgdrX4-sbjBocAVGauCDnUociSdgELOn3DY_cwg_xmn3WI-wr9xc-6PLU3SzT_fDV2yVqEIxTGtICEYjhSpzwNso2VQcRs2qfOhLqXFPQGK1hQHSpo/s320/download.jpg" /></a>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-13737968003935362212011-09-03T07:35:00.000-07:002011-09-03T07:58:43.582-07:00$32,210 for a fake sense of liberty<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhW4YcoljNhINxCAdwJAAVQF7DQFt5hqXpq_4qBmA_Jrkpc5WxXarw5zEMsd2bkH42h7159vf_4m_nusna2SV4zaHaiup2iQHjE3GABNXueL9g936VX4PMxFzNSM32nXPCe0YFVQDOud0o/s1600/permis.JPG"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhW4YcoljNhINxCAdwJAAVQF7DQFt5hqXpq_4qBmA_Jrkpc5WxXarw5zEMsd2bkH42h7159vf_4m_nusna2SV4zaHaiup2iQHjE3GABNXueL9g936VX4PMxFzNSM32nXPCe0YFVQDOud0o/s200/permis.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5648144166294283074" /></a>
<br />
<br />
<br />Well, I should have started this process a LONG time ago. Before June 2010, anyone over age 25 could pass drivers tests directly without taking classes and get the full permit. Now, no matter how old you are, you must take 1 year class, have a learner's license for at least 1 year and a probationary license for 2 years. In short, it now takes mimimum 3 years before you can get your full license.
<br />
<br />But now that I am legally allowed to drive, I am still not planning to buy a car anytime soon. In Montreal the transit system is quite good and I never really need a car to commute to work or school.
<br />
<br /> According to auto123.com, the average new car price in Canada is $32,210. To many, cars mean liberty. Car manufacturers advertise cars sloping down winding roads with green meadows with absolutely no other cars in view, with the electronic music accentuating the sense of exhileration. Buy a car and you will be free like a bird!
<br />
<br />But in reality, cars are becoming synonymous with constraints, high registration fees, soaring oil prices, exponential parking rates. And what about all the fines, the repairs and the injuries and deaths from driving? Not to mention the environmental costs. Above all, the intial purpose of the car, to be transported conveniently and swiftly from point A to point B is not even fulfilled in most urban centers. Monster traffic jams make it more practical to take alternative methods of transportation.
<br />
<br />The car industry is filled with irrationalities: cars that can be driven at speeds far in excess of legal limits; handling properties far beyond the competence of most drivers; increasing dependence on image rather than objective usefulness to end user etc(1).
<br />
<br />Hopefully I will not succumb to the "poudre aux yeux" tactics of car manufacturers and continue using alternative methods of transportations as much as possible.
<br />
<br />And the nice thing about living in Montreal - there are no shortage of alternatives:
<br />
<br />Merci au Bixi, à la STM, aux trains de banlieu, à commune auto, aux pistes cyclables...
<br />
<br />(1) Graeme P. Maxton & John Wormald, Driving Over a Cliff? (Cambridge: Addison-Wesley, 1995) at 127.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com1tag:blogger.com,1999:blog-3886000398614397524.post-52258116095694864092011-09-03T07:27:00.000-07:002011-09-03T07:34:56.166-07:00Lots of new academic year resolutionsEvery September I start off the Academic Year ready for any challenge and project. Realistically, some of those projects are dropped off my list over the year mostly due to time constraints. In an effort to try to stick to my goals this Academic year, I am posting them here.
<br />
<br />1. Post at least once a week on my blog
<br />
<br />2. Run the half marathon on September 25
<br />
<br />3. Organize a fundraiser for GRIS Montréal
<br />
<br />4. Play with a band at Law School of Rock
<br />
<br />5. Write and film some skits for Skit Nite
<br />
<br />6. Bring a McGill delegation to Out on Bay Street
<br />
<br />7. Take swimming lessons
<br />
<br />8. Take Capoeira lessons
<br />
<br />9. Take salsa lessonsJoel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-85964517476879241072011-08-26T11:18:00.001-07:002011-08-26T11:24:49.838-07:00Mission Accomplished!I finished my MBA summer internship at CN with a great sense of satisfaction and now looking forward for a new year of law!
<br />
<br />Working for CN, such a huge company was not as different as working in a SME. However, there was a bit more beaucracy and it can be more difficult to build a network.
<br />
<br />I did not do as much legal work as I would have liked to, but this will be coming up next summer.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-38543616194554489642011-08-26T10:58:00.000-07:002011-08-26T11:17:35.260-07:00Merci M. Layton
<br />
<br /> J'ai pu voir M. Layton au sommet de son art lors du conseil général du NPD - section Québec en juin 2011. Il semblait à la fois simple comme personne, mais aussi d'une telle présence!
<br /> À la vigile lundi dernier, c'était émouvant de voir des personnes de tous les genres, signe que M. Layton a réussi à rassembler un peuple si divers.
<br /> C'est grâce à lui que j'ai décidé de passer de l'étape du scrutin à l'étape de l'implication en politique. Aujourd'hui, fier membre du NDP, j'espère bien pouvoir porter le flambeau et rejoindre d'autres avec les même valeurs et les mêmes préoccupations pour le Canada.
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<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin563yPeBn3YK-PFcZHJfXH8ux0emKcKMrVDt92YdfH-VWuZFeKaH4D7AfRzLLidEvZdETLTxMCitJKxs4EwXhhE32n1JA5_OOqvLaRlY4fT6yFv941oM6PCkk_vbYaF7YB6HpX6sWUMs/s1600/Montr%25C3%25A9al-20110822-00218.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin563yPeBn3YK-PFcZHJfXH8ux0emKcKMrVDt92YdfH-VWuZFeKaH4D7AfRzLLidEvZdETLTxMCitJKxs4EwXhhE32n1JA5_OOqvLaRlY4fT6yFv941oM6PCkk_vbYaF7YB6HpX6sWUMs/s400/Montr%25C3%25A9al-20110822-00218.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5645229330199751426" /></a>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-89805599265105496922011-08-26T10:40:00.000-07:002011-08-26T10:58:25.602-07:00Three recommendations from MBA mentor We have a mentorship program with the MBA program at McGill. I met with my mentor a few weeks back and three things came out of the meeting:
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<br />1) I should take some time off before school starts again (ok I will take 4 days off).
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<br />2) I should do the recruitement process for Montreal law firms.
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<br /> I was hoping to start working outside Montreal after my degree, but it may be the better stepping stone in the long-run. I was told at the carreer office as well that I should not turn down Montreal so quickly. I am starting to be convinced. The work-life balance is more possible, the European, laid-back,lifestyle is more apparent here. Cost of living is lower in Montreal. Easier to network and becoming known in Montreal. We'll see how it goes.
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<br />3) I should get some brown dress shoes to match my grey suit.
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<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVscj5cntbSCIEf9ZbsSMJDcKImjDfMcp4uGKjYdWyPaxFkwWHfPNhqTig1P0tkj40krmaZ3IKOUe_m6fxvL3BvarmIQRcq09LFVI-ul76eeSaQ17FYkylei0IrXphWc-Mgg6bXtncZT0/s1600/_Montr%25C3%25A9al-20110826-00221.jpg"><img style="cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVscj5cntbSCIEf9ZbsSMJDcKImjDfMcp4uGKjYdWyPaxFkwWHfPNhqTig1P0tkj40krmaZ3IKOUe_m6fxvL3BvarmIQRcq09LFVI-ul76eeSaQ17FYkylei0IrXphWc-Mgg6bXtncZT0/s200/_Montr%25C3%25A9al-20110826-00221.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5645225414030510738" /></a>
<br /> Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-794870101447047492010-09-23T19:28:00.000-07:002010-09-23T19:35:09.109-07:00THE SECOND HOLLYWOOD REVOLUTIONI am quite interested in the movie industry and particularly its evolution with respects to technological changes. Yesterday, Netflix was officially launched in Canada. I thought it would be interesting to post something on the subject of online streaming.<br /> Netflix is a pioneer in alternative movie rental schemes, starting off with an innovating no-late fees model, where customers can choose movies online and receive them by mail and keep them for an unlimited period for a monthly fee. Netflix also is making important inroads in the online streaming model, which is also offered in Canada as of yesterday. <br />The widespread use of DVDs and the increasing popularity of video clubs sparked off a rapid transformation of moviegoers. The watching of films became more about the small screen than the big screen. This was the first Hollywood revolution. In the words of Theodore Levitt, Hollywood had been suffering marketing myopia at the time since the sector of activity was too narrowly defined to “movies” as opposed to entertainment as movie moguls denied the inroads TV had been making.<br /> Today, a new revolution is happening and the battling ground is not in your living room but in the virtual world. Hollywood has still not adequately answered to the increasing popularity of streaming videos online. Many models are out there, some legitimate and others that may be categorized as piracy. In order to have a better view of this revolution, let me lay out what is at stake and who are the players. <br /><br />PLAYERS<br /><br />In the recent news, the following five players have been involved in the movie streaming service or have indicated that they had plans to move into the field:<br /><br />• Apple<br />Using its already much appreciated ITunes platform, it is possible to rent movies online and watch them from a computer. The movie is streamed and made available for 24h. Prices range from 3$ - 5$ depending on the age of the movies. Apple is also rumored to be developing an interface to tap in the ITunes application with the already existing set-top box, Apple TV, which would let viewers download movies and watch them on a television screen.<br />• Best Buy<br />Since this past May, Best Buy owns the right to run Cinema Now, an on-demand service that can be used through Blu-Rays and other home cinema systems. Best Buy plans to leverage their Blue Shirt and Geek Squad services with this new offering.<br />• Time Warner<br />With 9.2 m broadband subscribers, Time Warner has a massive customer base for online streaming. The cable company and Disney have been negotiating in the past month to establish an online channel with content provided by Disney. A deal has yet to be reached.<br />• Sony<br />Apparently the Japanese company is vying to get a share of the online streaming market by developing a streaming service that could be used with the PlayStation game consoles and other electronics with connectivity such as the Bravia TV set.<br />• Netflix<br />Netflix is the champion and pioneer of online streaming movies and is making important inroads by getting some of the big movie companies to hop in the online streaming boat. Nintendo and Netflix struck a deal to let Wii users watch movies using the device.<br /><br /><img src="http://www.joelkwan.ca/ENG/images/blog/players.jpg" border="0" width="450" height="310"><br /><br />MODELS<br /><br />Set-top or with devices<br /> This model gives more control to the service provider because proprietary hardware is used to deliver the service, however it incurs upfront costs for customers who have to buy a machine. Apple TV, Sony and Nintendo use a box to deliver content, however in the case of Sony and Nintendo, game consoles also have other uses therefore the delivery of movies become an complementary offer. One important advantage here is that these devices can be hooked to a TV directly which allows a better viewing experience.<br /><br />Through software<br /> ITunes is the software that Apple uses to deliver the content, though similar to directly online streaming, software that manages many types of media also becomes a powerful option.<br /><br />Directly over the internet<br /> The most simple option technology wise is to stream content directly on a website, although this is limited to browser compatibility and hardware compatibility issues.<br /><br />WHAT DOES IT TAKE TO MAKE IT?<br /> <br />• Substantial upfront investment – the hardware and infrastructure required to set-up a high-performance online streaming platform definitely represents a barrier to entry for potential entrants.<br />• Partnerships with content producers – without partnering with movie producers, there is no product to deliver. Only with the agreement of the producers will the company delivering the media be able to use the content. The same is true for the traditional brick-and-mortar video stores that rent out movies.<br />• Technology – the bandwidth available is essential to the success of the online streaming platform since low bandwidth will impede customers from enjoying a smooth viewing experience. A technology that is also secure and that can limit threats to privacy and fraud will also be a sine qua none condition for the online streaming platform to succeed.<br />• IP laws - strong intellectual property laws that are enforced, coupled with a social awareness of piracy and a social stigma attached to illegally downloading and copying movies are also necessary to convince businesses that online streaming is a profit-making opportunity.<br />• Social trends – the adoption rate of the internet and the relative trust that people have in purchasing over the net are important factors for the online streaming platform.<br />• Customer base – at this stage, I would also add a strong customer base as a prerequisite to succeed in the field.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-50124027944286651122010-09-14T19:51:00.001-07:002010-09-14T20:08:18.357-07:00First thoughts on Law School & Solemn DeclarationExcerpt from a message to my dear friend Ian:<br /><br />Law school is grueling! I do not recommend it to anyone with a right mind.<br /><br />The sheer volume of assigned readings is nothing but cruel and unusual punishment (US 8th amendment)<br /><br />Although the professors' switching of language of instruction from Latin to English to French in the same sentence and sometimes in languages that seem foreign to this universe is definitely not a bona fide<br />occupational requirement, it is used profusely. (normes du travail)<br /><br />The socrates method employed during class is certainly not done in good faith (art. 6 CCQ)<br /><br /> And the extremely bright and intelligent students that always find a way to phrase their questions in order to make the rest look dumb are, frankly, not abiding to their general obligations of care according to civil liability (art. 1457 CCQ)<br /><br />As you can see, I am also already being indoctrinated (not to say brainwashed) in this mysterious, exclusive club up on the upper campus of an apparently 'top 20 in the world' institution, reading 18th century English constitutional texts, legal acts retelling the divisions, sub-divisions, reunifications and further divisions of this country and of course analyzing court cases... not knowing exactly why, how, where, when and what....<br /><br />However, I am embracing it completely with a mindset apparent of that of a 2 year old that generally has a vocabulary of 50 words and can only make simple sentences. This means my legal vocabulary is rather limited at this point. Everything is novel, curious, challenging and, more importantly, interesting.<br /><br />I am feeling that I am in for a treat. A gift of wisdom from my peers and professors who are all supremely clever and dedicated individual. I am receiving a gift that opens doors, procures certain powers and generates possible riches. <br /><br />What am I in it for? Well a bit of everything, a bit of nothing. I am not sure a law student can answer this question honestly and adequately.<br /><br />But I now know that I am at the right place.<br /><br /><br />So, with this, let me make a formal declaration:<br /><br /> I hereby declare, that no matter what happens from now on, I, Joel Kwan, will still be the same Joel Kwan when I become a lawyer. My friends will be friends, my family family and my heart will be at the same place (that is, the right place).Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com2tag:blogger.com,1999:blog-3886000398614397524.post-38849998337299276082010-09-12T14:37:00.000-07:002010-09-12T14:46:33.747-07:00How much is your education worth?<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNemuxTfhKfoVmmv2muL7z9mjxXreXkJ3bxwD6oGIDC3mIXfUVQw3gy3Qmj7hBMBP0MEiMwQj9NetTuslbKWvHrEMyY37RrTpfeAR-SmtiPkE5jGbyQhReBqG8lrsHJSZt_oxE9PuaMng/s1600/npv_table.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 102px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNemuxTfhKfoVmmv2muL7z9mjxXreXkJ3bxwD6oGIDC3mIXfUVQw3gy3Qmj7hBMBP0MEiMwQj9NetTuslbKWvHrEMyY37RrTpfeAR-SmtiPkE5jGbyQhReBqG8lrsHJSZt_oxE9PuaMng/s200/npv_table.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5516145623049274802" /></a><br />THE NET PRESENT VALUE OF YOUR EDUCATION<br /> Since this is back-to-school time, I thought it would be interesting to look into financial valuations of education programs. It might seem a cynical exercise to do so since such exercises strictly examine the economic benefits and costs, whereas sentimental values of studying in certain fields are omitted.<br />In introductory finances courses, business students learn various methods to evaluate the value of projects that require investments, have future cash flows and respective levels of financial costs. For instance, a typical valuation problem a business student would get is the implementation of an IT system. The most prevalent method at least in introductory finance courses is the net present value (NPV) method which, in simple terms estimates the value of future cash flows generated by a project and reduces them by a discount rate which is a measure of the cost of using the capital of the project. The amount of initial investment is then reduced by the initial investment. This end result is the NPV and represents an estimated value of the project. Naturally, the NPV must be positive in order to be worthwhile.<br />Now, a general model to calculate the NPV of an education requires lots of assuming and guessing, but for the purposes of the exercise here are the steps to calculating the net present value of your education. I will also set forth an example with an imaginary person.<br /><br />#1 Estimate the opportunity cost of attending post-secondary education<br /><br />Assuming one would at least complete high school education, estimate the kind of revenue you could have earned with only a high school degree from age 14 to age 65.<br /><br />#2 Estimate the life time income received following higher education<br /><br />Here you can assume you will work until 65.<br /><br />#3 Estimate the total lifetime cost of your education<br /><br />Here you can include everything directly related to school – tuition, books etc…<br /><br />#4 Use the NPV formula to obtain result<br /><br />C/d – (K)<br /><br />C = lifetime value derived from higher education (step 2)<br /><br />D = risk-free discount rate (suggested by US census bureau*) may be found <a href="http://www.bankofcanada.ca/en/rates/bonds.html" target="_blank"><br />here</a><br />K= opportunity cost of attending post-secondary education (step 1)<br /> The lifetime cost of your education<br /><br /><br />* Kantrowitz, Marc. “The Financial Value of a Higher Education” NAFSAA Journal of Student Financial Aid, Vol. 37, No. 1, 2007.<br /><br />Table from KantrowitzJoel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-23311387511876102172010-09-06T17:04:00.001-07:002010-09-06T17:19:50.913-07:00Happy Labour DayIn Canada, we celebrate labour day by not working. Sounds contradictory? Well, if we trace back the origin of this celebration in the late 19th century, we find out that labour day originates from labour union mouvements that were demanding better work conditions.<br /><br />Fast forward to today, labour unions are losing power in large part due to the changing nature of workers. Jobs are becoming more precarious, workers more mobile and temporary because of the important shift from primary and secondary sector jobs to the service sector, where unions have historically had more difficulty making in-roads.<br /><br />Further, labour laws are still largely based on the typical full-time employment relationship that is becoming rarer and rarer.<br /><br />The end effect is that workers are facing more precarious work and less legal protections.<br /><br />Labour day in Canada was first celebrated with a march in support of the Toronto Typographical Union's strike. Perhaps we need to remember why we celebrate Labour day and give a new meaning to the holiday given the new reality of jobs today.<br /><br />For more information on labour laws in Canada, please see my <a href="http://www.joelkwan.ca/ENG/papers/KWAN_labour_laws.pdf" target="_blank">report on the subject.</a>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-61662332992340294292010-02-07T16:47:00.000-08:002010-02-07T16:57:48.006-08:00Uh Oh - CanadaToday I post an exerpt of a paper I am working on. I was supposed to blog on the new IPAD, but unfortunately I am too busy to write supplementary material this week. Next week I should be back on schedule with a post on the Olympic Games, just in time for the opening of the Vancouver Olympics.<br /><br />Introduction<br />Every year, the World Economic Forum produces a report called “The Global Competitiveness Report” to assess the competitiveness of 133 countries based on specific indicators separated in 12 different pillars (see exhibit 1). In 2009, Canada ranked 9th in the world, up from 10th placed in 2008. According to the World Economic Forum metrics, the Canadian economy particularly falls short in the following pillars: macroeconomic stability, innovation, goods market efficiency and business sophistication (see exhibit 2). In this paper I will attempt to identify underlying issues that may be responsible for a lack of performance on the problematic pillars and provide short and long term recommendations that may help the Canadian economy become more competitive globally.<br /><br />Analyzing Deficient Pillars<br /><br /> Although Canada has weathered the recent economic downturn quite well compared to its closest neighbour, the United States, Canadian Budget Officer Kevin Page has warned that the government and Bank of Canada forecasts for economic recovery were too optimistic, and in the meantime, austerity measures would be difficult to sustain when large debt payments would come to term. Additionally, Page identifies aggravating factors such as an aging population and scheduled tax cuts . Canada’s macroeconomic stability ranks 31st (out of 133) and World Economic Forum analysts warn that macroeconomic stability would be crucial for sustainable competitiveness of the Canadian economy.<br /> Second, the Canadian economy still largely relies on its natural resources for economic growth, which is problematic since global competition, exchange rate volatility, lagging productivity trends and shortage of labour is taking a toll on the primary and secondary sectors . By and large, the sectors in question have been protected through subsidies and tariffs which come at the opportunity cost of supporting more forward looking industries. For instance, Canada ranks 12th in innovation and could be losing out in strategic industries that require expertise, research and development and innovation (see exhibit 3).<br /> Third, Canada places 16th in goods market efficiency, which reflects its burdensome tax structure for businesses and restrictive labour policies. In fact, a World Economic Forum survey demonstrates that tax rates and restrictive labour policies came in second and third place respectively in terms of problematic factors for doing business in Canada in 2009 (see exhibit 4). Marie-Ann Carignan, originally from the United States, noticed a significant difference in labour policies when she assumed the position of CEO of Purkinje in Canada: “I am forced to hire external consultants on a regular basis to fill full-time positions because it is so difficult to fire employees .” <br /> Fourth, business sophistication is deficient as it places 12th in the World Economic Forum report. The National Director – Manufacturing of Business Development Bank of Canada, Carl Gravel believes that this is caused by Canadian entrepreneurs being generally risk-averse, complacent and over reliant on the United States market .<br /><br />Recommendations<br /><br /> First, to tackling the macroeconomic problem is by no means a simple task. I believe that in the short-term, the government should focus on lowering consumption taxes to spur household spending in an attempt to raise more taxes. Also, on the monetary side, the Bank of Canada should coordinate in order to ensure that inflation does not go out of hand while the economy recovers. By keeping the interest rate relatively low, and slowly rising it as the economy picks up, incentives for domestic business growth would also remain on a short-term. Further, expansionary policies should help the Canadian dollar remain competitive to encourage exports which would also help reduce the deficit. However, once the economy fully recovers, the second phase would be to further reduce the barriers to foreign trade in order to foster healthy competition within the Canadian economy. According to the Institute for Competitiveness and Prosperity, adopting policies that will encourage FDI, foreign subsidiaries and headquarters in Canada would be critical in the reform of the Canadian Economy . Specifically, lowering corporate taxes, reducing strict controls on FDI and abolishing the government support of traditional “champion industries” would help the economy move to the next level.<br /> Second, attracting world talent and fostering local genius would help constructing industries that are more knowledge based. Concurrently, ensuring that there are opportunities for those individuals to develop strategic technologies would also help build sustainable country advantages. Motivating youth to be more proficient in math and sciences, reducing the rate of high school drop out and attracting investment in strategic technologies such as solar power should be on the agenda of the Canadian government to attack this problem. Also, lifting strict policies on certification recognition from foreign countries would definitely make Canada more attractive to international talent.<br /> Third, Canada should learn from its Scandinavian counterparts where the leading paradigm in terms of labour policy is flexicurity, which aims to protect the employability of citizens rather than protect the particular job or position of workers. This way, the labour would be more attuned to the changing reality of structural precariousness in industry, but also give much needed flexibility to employers.<br /> Fourth, business sophistication could be increased by adopting programs to give tax incentives to companies that implement changes in business processes that make demonstrable increases in productivity. Also, there are a disproportionate number of managers with business degrees in the United States than in Canada, which may explain why there is a lower level of business sophistication (see exhibit 5). Mandatory business training for Canada’s managers that is funded both by the private and public sectors would then help increase business sophistication.<br /><br />Conclusion<br /><br /> Canada is certainly improving on the global competitiveness front. However, certain weaknesses must be addressed in order to ensure sustainable growth in the future. Businesses and governments must be more forward looking and opportunity seeking since the United States market may become less attractive while emerging and developing markets are largely untouched by Canadian businesses. In this context, the role of the government is to first ensure macroeconomic stability and then help foster strong domestic businesses that will be able to seek the opportunities available outside Canada, since Canada on its own is just not a large enough market to be sufficient for continued growth.<br /><br /><p><br /><a href="http://www.joelkwan.ca/ENG/papers/appendices_canada_competitiveness.pdf" target="_blank">Click to view exhibits</a><br /></p><br /><br /><br /><br />Endnotes<br /><br />Canada’s chronic deficit ‘not sustainable’: federal budget office” The Vancouver Sun, January 13, 2010, http://www.vancouversun.com/sports/Canada+chronic+deficit+sustainable+federal+budget+officer/2437579/story.html, accessed February 2010. <br /> Carl Gravel, “Helping Canadian SMEs Becoming Globally Competitive,” MBA class discussion, January 12 2010, Desautels Faculty of Management, McGill University, Montreal, Quebec.<br /><br /> “Global Competitiveness Report,” The World Economic Forum, 2009 P.110.<br /> Marie-Ann Carignan, “Managing in Canada and the United States,” MBA class discussion, February 2 2010, Desautels Faculty of Management, McGill University, Montreal, Quebec. <br /> Carl Gravel, “Helping Canadian SMEs Becoming Globally Competitive,” MBA class discussion, January 12 2010, Desautels Faculty of Management, McGill University, Montreal, Quebec.<br /> “Flourishing in the Global Competitiveness Game,” The Institute for Competitiveness and Prosperity, September 11, 2008, P. 11.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com1tag:blogger.com,1999:blog-3886000398614397524.post-59908589574393145102010-01-31T14:51:00.000-08:002010-01-31T16:42:43.376-08:00What Happened to Canada's Sarbanes-Oxley Act?Is Canada equipped to properly deal with corporate fraud? Based on the recent unravelling of the Norbourg and Earl Jones cases, it is easy to understand why many investors are complaining that the justice system does not properly handle such cases. Our neighbours down south did try to make some changes by enacting the Sarbanes-Oaxley Act (SOX).<br />SOX were introduced in the United States following a series of corporate fraud scandals that occurred in 2001. The main aim was to prevent intentional fraud by executives, to prevent conflict of interests between corporate governance entities and to incite whistleblowers to denounce fraud without being scared of retaliation.<br />Enron is the poster child of the corporate scandals that happened in 2001. Executives had relied on various creative accounting techniques to undervalue the amount of debt and expenses of the company and to overvalue earnings. Although in the United States, scandals involving important banks, auditing firms and corporations demonstrated that the control mechanisms in the system were fundamentally flawed, no such scandal happened in Canada at the time. Therefore, the government decided to make some superficial regulations, more as a means to equalize playing grounds with our greatest trade partner than to protect investors. <br />The Canadian government shied away from fundamental reform similar to SOX on the basis that SOX was not appropriate in the Canadian context. First, the disproportionate number of small and medium enterprises in Canada would be overburdened by increasing the requirements for reporting and would potentially discourage companies from listing on the stock exchange. Second, a great share of firms is cross-listed in the Canada and the US, so they most already comply with SOX. Third, there is no federal regulating authority for stock markets in Canada, which would make legislation similar to SOX impracticable. Fourth, the government argues that increasing regulation fosters a “find the loophole” mentality whereas the present principles based system is justifiable to give room to managers for judgment that is necessary for a successful business practice.<br />Although Canada did adopt parts of SOX, the regulations are not effective in preventing fraud. CEOs and CFOs are required to certify that reports do not contain material misstatements. It is argued that a signature on a financial statement cannot properly help realizing on time that fraud is brewing. The Canadian government also adopted the audit committee proposal which suggests that by creating an extra watchdog to raise flags when there is some misconduct. However, since the committee must rely on the Board of Directors to react, the committee may be futile if the Board is not willing to act. The third proposal is the creation of the Canadian Public Accountability Board which conducts tests among auditing firms to assure compliance of auditing standards. The RCMP’s Integrated Market Enforcement Team (IMET) was also created at the same time, but with results that are less than impressive. Between 2002 and 2007, the US Justice Department was able to convict 1200 individuals for white-collar crimes, while the IMET only managed two in four years.<br />Canada seems to be lacking political will to make significant changes. To add to the problem, every province has its own regulating body, which makes enforcing more difficult. The regulating bodies are under-funded and have little power when it comes to investigations.<br />In Quebec, l’Autorité des Marchés Financiers (AMF) is the regulatory body. Unfortunately, it is only responsible for investment professionals that choose to register with AMF. Recently, l’Autorité des Marchés Financiers pressed charges against Vincent Lacroix and collaborators in the Norbourg case. The outcome was 5 years of imprisonment (although Lacroix was released less than a year after the beginning of his prison term) compared to 150 years imprisonment for Bernie Madoff in the US. Instead of questioning the effectiveness of regulation in Quebec to protect investors, AMF believes that investors should be responsible for making good or bad decisions when choosing an investment professional. In its campaign “Investigate”, AMF proposes five steps that an investor should follow before making investment decisions. <br />Unfortunately, it seems that the government of Canada is not intent on making any fundamental changes to the regulatory environment of the financial system. Although the Conservative government has announced last year that it was planning to introduce minimum sentences (2 years) for economic crimes, a report on Global Economic Crime by PriceWaterhouseCoopers concludes that Canada is a top destination for white-collar crimes. <br /><br /> <br />Related<br /><br /><p><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/Zhk3n2OaxqQ&hl=en_GB&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/Zhk3n2OaxqQ&hl=en_GB&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object></p><br /><br /><p><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/xervZz6s9No&hl=en_GB&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/xervZz6s9No&hl=en_GB&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /></p><br /><p><br /><br /><a href="http://money.ca.msn.com/investing/deirdre-mcmurdy/article.aspx?cp-documentid=22379728" target="_blank">Canada's handling of white-collar crime is a crime</a><br><br /><a href="http://www.canadianbusiness.com/managing/strategy/article.jsp?content=20070918_19904_19904" target="_blank">A good country for crooks: Canada's losing war against white-collar crime</a><br><br /><a href="http://cupe.ca/economics/Harper-soft-on-white" target="_blank">Harper soft on white collar crime</a><br><br /><a href="http://www.educaloi.qc.ca/en/publicforum/story79/" target="_blank">The Court of Appeal Reduces Vincent Lacroix’s “First” Sentence</a><br><br /><a href="http://www.globalmontreal.com/world/Lacroix+sentenced+years/2086111/story.html" target="_blank">Norbourg fraudster Vincent Lacroix sentenced to 13 years</a><br><br /><a href="http://www.cbc.ca/canada/ottawa/story/2010/01/15/mtl-earl-jones-court.html" target="_blank">Earl Jones pleads guilty in $50M fraud</a><br><br /><a href="http://www.google.com/hostednews/canadianpress/article/ALeqM5j8VtuzHTa0kMKTDiFd_g2xjliU7Q" target="_blank">Norbourg fraud trial ends after jurors fail to reach unanimous verdict</a><br><br /><a href="http://www.pwc.com/gx/en/economic-crime-survey/index.jhtml" target="_blank">2009 Global Economic Crime Survey</a><br>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-58168801055432571962010-01-23T14:17:00.000-08:002010-01-23T14:21:57.741-08:00PEETHREEPHOBIA, OR THE FEAR OF P3s (Public-Private Partnerships)I remember attending a conference on the economic model of Quebec in 2004, where a UK government representative was advocating for P3s and their advantages. It seemed that England had found a way to make it work and that P3s were used extensively; success stories were plentiful.<br /><br />However, there is much debate in Canada and especially in Quebec on the merits of P3s. Interest groups such as labour unions finance anti-P3 campaigns such as this one currently seen on TV nationwide: <br /><br /><object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/SbPeoAkjGdM&hl=en_GB&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/SbPeoAkjGdM&hl=en_GB&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object><br /><br />Should P3 initiatives be terminated in order to protect Canadian citizen interests? After taking a look at both sides of the argument, here are my conclusions.<br /><br />First off, what are P3s? The Canadian Council for Public-Private Partnerships defines P3 as: “a cooperative venture between the public and private sectors, built on expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards.”<br /><br />Typically, P3s will tend to be long-term agreements where financing, design, construction and maintenance of facilities are shared between public and private organizations. <br /><br />Although one of the first countries to use P3s was France in the 18th century(1), the UK and Australia are credit for its invention. The UK is by far the biggest purchaser of P3s, with as many as 400 projects commissioned in 2005(2). Here in Quebec, P3s were introduced by Monique Jérôme-Forget, then Minister of Public Administration and Government Services, at the turn of the century. Once the Quebec Public-Private Partnerships Agency (PPPA) was founded by Jérôme-Forget, the controversy began.<br /><br />In Canada, the media has been much more responsive to failures than successes, possibly affecting public opinion on the matter (4). Despite a difficult start, there is a consensus that the media is starting to be more objective in its reporting of P3 projects and moreover, surveys show that public opinion has been more favourable to P3s recently (4).<br /><br /><br />The P3 debate plays along the following lines:<br /><br />1. Are P3s less expensive than traditional public procurement schemes?<br /><br />Although it is difficult to assess this in the case of Quebec because P3s are relatively recent here, data from the British Columbia Council on P3s show that 100% of projects were delivered on budget and on time or ahead of schedule (3). In the UK, this rate is 78%, but in the case of cost increases, the government agencies did not bear the difference (4).<br /><br />Further, there are interesting mechanisms in the P3 framework such as honoraria and break-fees that encourage competition in the bidding process as well as more diligence in the drafting of project proposals. Honoraria are given to competing suppliers to encourage quality in their bid proposals. Break-fees are paid out when suppliers are committed, but the project is cancelled.<br /><br />The bidding process is far from perfect in Canada and could be improved in terms of efficiency and effectiveness. Recently, it was found that the decision of the Government of Quebec to use a P3 for the construction of the CHUM is based on reports that are deliberately slanted towards the P3 case, with risks minimized for the partnership case and costs maximized for the traditional case (6). Evidently, there is room for improvement here.<br /><br />2. Do P3s provide better services for citizens?<br /><br />This question is difficult to evaluate because of the lack of data on this subject. The real test for this question will be seen 10 years from now, when the initial projects will go beyond the construction phases and into maintenance and operations. <br /><br />However, if we take a look at Chile, that has invested in an important P3 infrastructure starting in 1996, the results seem favourable in terms of consumer satisfaction although if we look at projects collectively the results are mixed (5).<br /><br />In this area, proponents of P3s believe that some projects are far too ambitious and lengthy in time for governments with little experience with the mechanism. It would be better than to start off with few little projects, than many big projects.<br /><br />3. Are P3s creating monopolies?<br /><br />Because the P3 industry in Canada is still in its infancy stage, domestic and international competition, especially in the construction industry is quite low, which can stifle innovation and competitive pricing. Again, with more time, I believe results will be more conclusive.<br /><br />4. Are P3s affecting job conditions?<br /><br />The argument that jobs become less secure in a P3 environment predominantly originates from labour unions. However there is little data to support his argument. According to the labour unions, P3 workers are mostly atypical workers that earn lower salaries and are subject to precarious job conditions that pose serious psychological and health hazards (1). If we take this argument further, this means that organizations that are awarded P3 contracts do not abide by federal, provincial and municipal laws on labour and work safety. Let us not forget that P3 consortia are formed of the same private companies that run business everyday in non-P3 matters, therefore work conditions cannot be alienated to the extent of making P3s harmful for workers.<br /><br />5. Is the P3 bidding mechanism transparent?<br /><br />There is a general trend towards non-disclosure of information because of participation of private organizations in the process (1). However, some provincial governments have made public detailed reports on P3 projects, but the market would be more confident if documents on bidding details were also made public.<br /><br />6. Are P3s a “Trojan horse for privatization”(1)?<br /><br />England has adopted P3s in a time where there were budget constraints on the government and major infrastructure projects had to be implemented. P3s was an alternative that was used in order to push the projects without overburdening the government with debt(2). I believe that P3’s make a good compromise between privatization and nationalization. If the public sector assures the quality and universal access for citizens and benefits from expertise from the private sector, then this compromise truly creates value. The government’s move towards P3’s does not mean that there is a desire to privatize.<br /><br />Conclusion<br /><br />There is more fear than harm in the case of P3s in Canada. Strong interest groups and slanted media has helped building a case against P3s, but there is plenty of evidence that show that there is a bright future for P3s. <br /><br />However, there are important improvements to be made. P3s boil down to complex agreements between the public and private sectors. These agreements must find the right balance of accountability so as to find the perfect mix of risk between the public and private agencies. Failure to find the right balance mostly means failure of the project. For instance, higher bidding prices may be the result of too much risk placed on the side of the private sector. Also, more transparency must be applied in the bidding process in order to satisfy the market’s need for fair competition. Next, the government must not impose to many restraints in the bid offers since this could diminish innovations and lead to more expensive proposals. Lastly, the government must make sure that P3 initiatives continue on a regular basis in order to build much needed expertise in the matter, attract competition and build the market for P3s.<br /><br />UPCOMING TOPIC: Corporate Governance in US and Canada... too much lax?<br /><br /><br />SOURCES <br /><br /><br />1. Roy, Louis. “Improving State-Building Capacity: The P3 Paradox” Confédération des Syndicats Nationaux. Presentation in Zurich Feb. 2008.<br />2. “Overview of Public Private Partnerships in the UK” Unison. June 2005.<br />3. “Public Private Partnerships” Partnerships BC. Jul. 23 2008.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-23431057243620665892010-01-20T15:13:00.000-08:002010-01-20T15:44:45.489-08:00The Economics of Hollywood MoviesI saw Avatar this past weekend. I have to admit that I have not seen a good action science-fiction movie like this for a long time. This outing at the movies inspired me to look into the blockbuster strategy in Hollywood. The blockbuster strategy started in 1975 with Jaws when the movie was released nation-wide with lots of emphasis on marketing (1). Jaws was the first movie to be advertised on national TV. More recently, a characteristic of blockbuster movies is hefty budgets. The trend has been that the average Hollywood movie cost is on the rise by nearly 7% a year (2). Avatar has set a new precedent: the New York Times estimated total costs of $500 million (3). <br /><br />For the purposes of satisfying my curiosity, I did two simple regression analyses using the top 20 most expensive movies of all time adjusted in 2008 $US. I wanted to see if there was a correlation between the movie’s budget and the worldwide revenue in the first test, and in the second I wanted to see whether there was a correlation between the movie’s budget and viewer appreciation (estimated using the Internet Movie Database ratings -IMDB).<br /><br />After running the tests, it seems that total movie budget is not a very good indicator of box office success. According to the first test, the movie budget accounts for a little less than 30% of the revenue stream. It is noteworthy that only 5 movies in the top 20 most expensive movies of all time end up in the top 20 most enjoyed movies of all time (4). <br /><br />The second test is even less conclusive. The movie budgets accounted for only 20% of ratings by fans on IMBD. Again, out of the 20 top best rated movies on IMDB, none of the 20 top most expensive movies show up in the list.<br /><br />These tests, although using small samples, show that there is not a very strong correlation between movie costs and revenues and between movie costs and viewer ratings.<br /><br /><p><img src="http://www.joelkwan.ca/ENG/images/blog/chart1.jpg"></p><br /><br /><p><img src="http://www.joelkwan.ca/ENG/images/blog/chart2.jpg"></p>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-48598112450670184392010-01-17T14:35:00.000-08:002010-01-17T16:09:16.064-08:00Globalization Sensitizes World to Humanitarian CrisesIndeed, as Thomas Friedman proposes, the world is flat in the 21st century as economic barriers disappear, geographical limitations become less important and technology is making the concept of distance more trivial. Now, whether this is a good or a bad thing is a totally different debate that I do not go into today. I would rather spend a few moments to consider how the world as a global village is helping citizens worldwide become more aware and sympathetic to humanitarian crises.<br /><br />For many observers, the 2004 Indian Ocean tsunami represents the first global natural disaster in modern times (1). The moment images of desolate landscapes with hundreds of injured and dead starting showing up in international media, aid on private and public fronts started organizing world-wide. There had never been such an intense and rapid international response. Some researchers even found that there was a strong correlation between extent of media exposure of humanitarian crises and amount of private donations (2). Suddenly, a natural disaster in New Orleans does not only concern the United States (a total of 854 million was offered from foreign countries (3)), and an earthquake in Sichuan, China sends ripples in the international community.<br /><br />The current situation in Haiti is a case in point. According to USA Today, less than three days after the earthquake, private donations were already on its way to break all-time records.<br />Despite the world communities increased generosity and speed in responding to such dramatic events, many believe that this trend must be taken to a new level: humanitarian crises do not only happen in a one-time event due to natural disasters. There are humanitarian crises that are ongoing in poverty-struck countries that equally need international aid. Shortly after the 2004 Indian Ocean Tsunami, Tony Blair believed that foreign aid was detracted from important causes and that “there is the equivalent of a man-made preventable tsunami every week in Africa” (4).<br /><br /><br /><p>I prepared a small table for this post:<br><a href="http://www.joelkwan.ca/ENG/images/blog/table_disasters.jpg" target="_blank">Transfers of public donations for selected natural disasters</a></p><br /><br /><br /><br />SOURCES<br /><br />1. “The Globalized world responds to the tsunami disaster.” Global Envision. Retrieved Jan. 16 2010. http://www.globalenvision.org/library/8/758<br /><br />2. Brown, Philip; Minty, Jessica. “Media Coverage & Charitable Giving After the 2004 Tsunami” The William Davidson Institute at the University of Michigan. Dec. 2006.<br /><br />3. Solomon, John; Spencer S. Hsu (2007). ""Most Katrina Aid From Overseas Went Unclaimed"" (News Article). Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2007/04/28/AR2007042801113_pf.html. Retrieved 2010-01-16.<br /><br />4. Grice, Andrew. “Blair: We must extend support to Africa” The Independent. http://www.independent.co.uk/news/world/politics/blair-we-must-extend-support-to-africa-495608.html. Retrieved 2010-01-17.<br /><br />5. Saito, Masaki. “Japanese People Appreciate Concern Shown by Americans” The Seattle Times. http://community.seattletimes.nwsource.com/archive/?date=19950306&slug=2108533. Retrieved 2010-01-16.<br /><br />6. Kambayashi, Takehiko. “Volunteering in Japan: A legacy of Kobe earthquake” World Volunteer Web. http://newsletter.worldvolunteerweb.org/e_article000365103.cfm?x=b11,0,w<br />Retrieved 2010-01-16.<br /><br />7. “The Globalized world responds to the tsunami disaster.” Global Envision. Retrieved Jan. 16 2010. http://www.globalenvision.org/library/8/758<br /><br /><br />8. “The Globalized world responds to the tsunami disaster.” Global Envision. Retrieved Jan. 16 2010. http://www.globalenvision.org/library/8/758<br /><br />9. St. Onge, Jeff; Epstein, Victor. "Ex-chief says FEMA readiness even worse." Boston.com. April 1, 2006. Retrieved on 2010-01-16<br /><br />10. Keen, Judy. “Haiti donations on track to break records” USA Today. http://www.usatoday.com/news/sharing/2010-01-14-Haiti-donations_N.htm<br />Retrived 2010-01-15<br /><br />11. “China Earthquake Could Cost US$20 billion” China Post. http://www.chinapost.com.tw/china/national%20news/2008/05/15/156467/China-earthquake.htm<br />Retrived 2010-01-16<br /><br />12. McGinnis, Ariel et al. “The Sichuan Earthquake and the Changing Landscape of CSR in China” http://knowledge.wharton.upenn.edu/article.cfm?articleid=2213<br />Retrieved 2010-01-16<br /><br />13. “Haiti Earthquake Damage Amounts to Estimated 15% of Country’s GDP” Associated Content. http://www.associatedcontent.com/article/2591657/haiti_earthquake_damage_amounts_to_pg2.html?cat=8<br />Retrieved 2010-01-16Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-34491948310794497282010-01-14T12:06:00.000-08:002010-01-14T12:07:38.620-08:002010 Wishes<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/qVvNZthgnI8&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/qVvNZthgnI8&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-16185961834007943882009-11-26T20:18:00.000-08:002009-11-26T20:27:13.372-08:00New research project down the pipe<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5dPXX1b6WBIH7m8UH7TtRte0QytBBGWOPIvtOTA1_i9JblUlcvdIy1hNPT2M1FDKLPKEC3NisjVD59_yBFFzSy2OVLCO6b3C-tNrSHxIO6TXprmbieiRe1gRzaZRyBjqJdANL_eWd-pE/s1600/IMG00029.jpg"><img style="cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5dPXX1b6WBIH7m8UH7TtRte0QytBBGWOPIvtOTA1_i9JblUlcvdIy1hNPT2M1FDKLPKEC3NisjVD59_yBFFzSy2OVLCO6b3C-tNrSHxIO6TXprmbieiRe1gRzaZRyBjqJdANL_eWd-pE/s200/IMG00029.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5408635255951802274" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilUfn_Sjfuwvup28FnK6Wnf-u5TI4RwuP6ogM4XNEqHNqqb-Y1XBsD3uQUjfOX3iFUqIP8hH7MfK9unUTM5l4X4x7TNixmidNQqgQF6HWo6aQRIepjuG1J1TvUvvRj9oC2wpy5JV9MSrA/s1600/IMG00030.jpg"><img style="cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilUfn_Sjfuwvup28FnK6Wnf-u5TI4RwuP6ogM4XNEqHNqqb-Y1XBsD3uQUjfOX3iFUqIP8hH7MfK9unUTM5l4X4x7TNixmidNQqgQF6HWo6aQRIepjuG1J1TvUvvRj9oC2wpy5JV9MSrA/s200/IMG00030.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5408635162473777522" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN0l0VvR2B7CTd0pM9fZInvs9gkRlWbyQj4a0sEINxSyem5nIA5IbS8CZN6dS4nH8vyDloaCe0ZOopoTRI8apFjhei9gOhdjjE7VKtQz_aDmQAGDZZAu9HMCU2RIG9-hMBDj7ujl-oADY/s1600/IMG00027.jpg"><img style="cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjN0l0VvR2B7CTd0pM9fZInvs9gkRlWbyQj4a0sEINxSyem5nIA5IbS8CZN6dS4nH8vyDloaCe0ZOopoTRI8apFjhei9gOhdjjE7VKtQz_aDmQAGDZZAu9HMCU2RIG9-hMBDj7ujl-oADY/s200/IMG00027.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5408635029481140482" /></a><br /> I have one last class for this semester: Markets and Globalization. With a new team and a project with a theme completely foreign to me, I think this will be another great learning opportunity.<br /> For this class we have to choose two companies to make a strategic analysis and recommendations, along with comparisons. Our top 3 choices were:<br /><br />1. Manchester United vs. Real Madrid<br /><br />2. Cirque du Soleil vs. Cirque Eloize<br /><br />3. Zip.ca vs. Apple movie rental service<br /><br /> The general enthusiasm from the team and feedback from our professor made the scale lean towards Manchester United vs. Real Madrid, the two top European football (soccer) teams.<br /><br /> Honestly, I had never heard of Real Madrid before and I know next to nothing about soccer clubs in Europe. But after I did some intitial research and had a crash course in European football clubs taught by one of our team members that happens to be very knowledgeable in the field (no pun intended), I believe we have a very interesting business case to dissect.<br /><br /> I hope I will be able to share the results of our study on my website. To give you a preview, here is the result of some brainstorming (may look like Chinese for now, but was really useful in planning the study).Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-33243137657429004382009-11-26T19:40:00.000-08:002009-11-26T20:17:43.280-08:00Deficit of reflective practiceBusiness people are always on the go, pressed by deadlines and targets. It seems that businesses have been focusing on ever shorter time frames for making decisions and assessing performance, all linked to the bottom-line. During our last reflection period with my MBA peers, we have discussed about how to slow down and take the time to reflect before acting. It's easy to say "think before you act", but it seems ever more complicated in the business arena when we here about the recent corporate scandals where initially sound, intelligent and caring individuals lose their moral compuses and try to cut corners for personal gains. How can we avoid slipping in the spiral of "ethical creeping"? Jim Schram, our guest speaker during reflection shed some light on some of the most difficult questions that has yet to be resolved in business practices in the 21st century. As former CEO of Lucent Technologies, Scrham had his share of dealing in shades of grey, never an easy task. He explained how our Earl Jones and Vincent Lacroix probably changed from good to bad in a gradual, very subtle way as people with certain statuses and profiles become part of the elite and actually become more and more isolated from the "real world". This isoloation creates a sheild that may give a sensation of invulnerability. Scharm dealt with this isolation by going back to his roots in a farming towns where his family members "were not at all impressed with his new lifestyle as CEO". <br /><br /> Others will say that more efforts have to come from the education side, namely business schools, where ethics remain a very small portion of general curricula. Patrick O'Neill, a Toronto-based consultant mentions that business schools have five defits in terms of ethics teachings:<br /><br />Deficit of reflective practice<br />Deficit of character development<br />Deficit of respect<br />Deficit of right use of power<br />Deficit of mentoring<br /><br />Back to our MBA reflections, we discussed about how on a personal level we can try to navigate through greyer areas of decision-making in the business place.<br /><br />1. Avoid isolation<br /><br /> Come back to your roots, family, friends and community, this will help you keep one foot firm on the ground.<br /><br />2. Newspaper test<br /><br /> When hesitating about a decision, think about how would you feel if your decision made the front page the following day. If you feel uneasy, then it's a sign that the decision might not be the best for all stakeholders.<br /><br />3. Take the time to reflect<br /><br /> Like going to the gym, reflection takes time, practice and discipline. One can only get better at it by doing it. That's exactly why we have reflection periods weekly in our MBA program.<br /><br /><br /><br />To read more about the five deficits from Patrick O'Neill, <a href="http://www.theglobeandmail.com/blogs/morning-manager/five-ethical-deficits-that-need-to-be-addressed/article1373542/" target="_blank">click here.</a>Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-13017058252906390372009-11-21T15:42:00.001-08:002009-11-21T16:04:30.288-08:00Life at 26<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8I-Yx8a2_Ge49nxYAH7o0kAq234TGC8PeCKWdCkI3JAkwd1m2J3TpnRBk_sI7F5jfTkqq9bweLvyVPuM40-7cEj6tWf83ywMH7W5csNivG9Us2hqnNoLnOf2kb7G3Gq7AGs7nKCq5Ebk/s1600/CIMG2977.JPG"><img style="cursor:pointer; cursor:hand;width: 200px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8I-Yx8a2_Ge49nxYAH7o0kAq234TGC8PeCKWdCkI3JAkwd1m2J3TpnRBk_sI7F5jfTkqq9bweLvyVPuM40-7cEj6tWf83ywMH7W5csNivG9Us2hqnNoLnOf2kb7G3Gq7AGs7nKCq5Ebk/s200/CIMG2977.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5406712064732985714" /></a><br />Turned 26 this week. I led the reflection period in my MBA class. The reflection period is all about looking back at our experience as students and professionals since the beginning of the program.<br /><br />The theme I suggested was Transformation and Discovery:<br /><br />When we decided to an MBA, we had some ideas of what we wanted to accomplish pedagogically. We might brush up some accounting and finance here and some marketing there. However, at the same time we are learning to balance books and evaluate return on investments, there is also something far more subtle that happens. We learn more soft skills such as interpersonal skills, cross cultural communication and dealing with stress for example. I call this the transformation of an individual through an intensive learning and socialization process.<br /><br />I have heard friends and family of my peers say how they have changed since the beginning of the program, how they had breaken out of our shell and now were much more open to others. That's all about the personal development, or the transformation of the individual.<br /><br />The other part of being an MBA student is also Discovery. We learn things about ourselves that we did not know before. Be it personality traits or interests that we did not even consider before, many of use are acknowledging new potential in ourselves.<br /><br />One peer from a marketing background that had never done some finance before discovered that she really likes finance and might go on and specialize in the field.<br /><br />Discoveries and transformations are extremely important in the learning process, more so than the actual hard skills learned in class I would add. In order to optimize the opportunities for discoveries and transformations, our MBA class came up with some suggestions:<br /><br />1. Go out of your comfort zone.<br /><br />Try new things, join new clubs and meet new people. These new experiences will definitely catalyze the discovery and transformation process.<br /><br />2. Exchange with people you disagree with.<br /><br />There is nothing less productive than a group of people that have the same opinions sticking together all the time. It is important to acknowledge that there are other ways to look at things and keeping ears and eyes open to those issues may make us see things differently.<br /><br />3. Be open to change and serendipidy.<br /><br />Having a plan is important, but it is also important to realize that along the way, many doors will open itself to us and we have to explore other avenues as well since we never know what is at the end of the path.<br /><br />Well, with these words of wisdom, I have to greet my first guest for my 26th bday party.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-86637081061689910572009-11-15T18:05:00.001-08:002009-11-15T18:52:17.440-08:00Flu Shot<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-mC9foIIxeAokDY6o3-RxJPrUZkmeQv-r1GGxTOACS_Hr4XTvslZEbJXbC9yhJAXgkvBHOeihCCZwS-fcBdt7k_T8LJ-jbs3OBoEIYnNfXnDYHvBU5PsvJygz3Hr1Suul4VU7eBDrYuw/s1600/disclaimer.JPG"><img style="cursor:pointer; cursor:hand;width: 321px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-mC9foIIxeAokDY6o3-RxJPrUZkmeQv-r1GGxTOACS_Hr4XTvslZEbJXbC9yhJAXgkvBHOeihCCZwS-fcBdt7k_T8LJ-jbs3OBoEIYnNfXnDYHvBU5PsvJygz3Hr1Suul4VU7eBDrYuw/s400/disclaimer.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5404528731684397698" /></a><br />I got my flu shot last Tuesday, it went pretty well. I only waited for about 10 minutes and half an hour later I was immunized (hopefully). My arm is still a little sore, but besides that there was no complication. It's funny how they give you a disclaimer sheet with all the possible side effects, including paralysis!<br /><br />I am working on an operations management problem based on my experience at the vaccination clinic. I will post it when it is ready. In the meantime, you can see a picture of my bandaid after the shot, with a little smile drawn by the nurse.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0tag:blogger.com,1999:blog-3886000398614397524.post-60695387059449711062009-11-11T13:28:00.000-08:002009-11-11T13:44:10.954-08:00Le jour du souvenir...Il est 11h, les canons retentissent pour nous rappeler des soldats et civils morts en action pendant la guerre. Je n’ai pas pu être présent à la cérémonie car je suis en plein examen. Entre les premiers et deuxièmes coups de canon, deux minutes de silence sont observées. Nous gardons le silence pendant trois heures et demie, la durée de l’examen.<br /><br />À chaque année je porte le coquelicot, symbole du jour du souvenir qui a été popularisé par le poème de John McCrea. Les coquelicots apparus sur les champs de Flandre suite aux combats particulièrement meurtriers de la Première guerre mondiale ont été une source d’inspiration pour le poème de McCrea, qui était présent pendant les batailles.<br /><br />Pour amasser des fonds pour les victimes de guerre, des femmes et enfants ont commencé a fabriquer des coquelicots en novembre de l’année 1921. La tradition se poursuit depuis…<br /><br />In Flanders Fields<br />In Flanders fields the poppies blow<br />Between the crosses, row on row,<br />That mark our place; and in the sky<br />The larks, still bravely singing, fly<br />Scarce heard amid the guns below.<br />We are the Dead. Short days ago<br />We lived, felt dawn, saw sunset glow,<br />Loved, and were loved, and now we lie<br /> In Flanders fields.<br />Take up our quarrel with the foe:<br />To you from failing hands we throw<br />The torch; be yours to hold it high.<br />If ye break faith with us who die<br />We shall not sleep, though poppies grow<br /> In Flanders fields.Joel Kwanhttp://www.blogger.com/profile/02588699403998287064noreply@blogger.com0