Systems Analysis

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Women to the fore at forum awards

Dubai The 11th Arab Media Forum (AMF) concluded Wednesday with the announcement of the region’s foremost acknowledgement of excellence in media — the Arab Journalism Awards (AJA).

At a gala ceremony attended by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, 17 media professionals were honoured.

Also present were Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai; Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Shaikh Majid Bin Mohammad Bin Rashid Al Maktoum, Chairman of Dubai Culture.

The awards, organised by Dubai Press Club (DPC), had a shortlist of 36 nominees in ten categories from 4,000 submissions. In addition, the AJA honoured four outstanding media people under Special Award; Media Personality of the Year 2012; and Newspaper Column. These were decided by 60 jury members comprising reputed journalists and industry leaders from across the Arab region.

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© 2011 Gulf News (www.gulfnews.com)
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Cientistas alertam: ser banqueiro faz mal à saúde

Scott Youtsey for The Wall Street Journal

Acrescente ser banqueiro de investimentos à lista das coisas que podem fazer mal à saúde.

Uma pesquisadora da Universidade do Sul da Califórnia encontrou insônia, alcoolismo, palpitações cardíacas, distúrbios alimentares e temperamento explosivo em alguns dos cerca de 25 profissionais iniciantes do setor de banco de investimentos que ela monitorou, assim que eles saíram da faculdade de administração.

Todos os indivíduos que ela observou durante dez anos desenvolveram uma doença física ou emocional relacionada a estresse, diz ela num estudo a ser publicado este mês.

Há muito o setor de banco de investimentos exerce grande atração sobre pessoas ambiciosas que anseiam por competição, muito dinheiro, jantares extravagantes e transporte de limusine pago pela empresa. A semana de trabalho de cem horas é apenas a primeira mão em um jogo de altas apostas.

Mas banqueiros de investimento, operadores e traders são apenas seres humanos. Sob o imenso estresse do trabalho, muitos sofrem problemas pessoais e emocionais que se transformam em crises graves, e alguns contraem doenças que persistem por muito tempo depois que eles abandonam o setor.

Lindley DeGarmo, de 58 anos, ex-conselheiro da Salomon Brothers, que deixou a indústria financeira em 1995 para tornar-se pastor protestante, recorda como os gerentes muitas vezes faziam os jovens contratados trabalharem até a exaustão. “A cultura lá era que esses eram corpos de cachorros”, diz ele.

John Chrin, ex-diretor-gerente da JP Morgan Chase & Co., que deixou a firma em junho de 2009 para tornar-se executivo-residente da Universidade de Lehigh, lembra-se de ver novos funcionários engordarem 15 ou 20 quilos dentro de um par de anos no cargo. Quando trabalhou na Merrill Lynch & Co., agora uma divisão do Bank of America Corp., Chrin se lembra de que um diretor-gerente mandou um motorista ligar o ar-condicionado apesar de ele estar quebrado, o que fez o carro pegar fogo. Esse diretor ameaçou então despedir o motorista. O Bank of America não quis comentar o assunto.

“Talvez o trabalho aumente algumas tendências que já existem”, diz ele.

O estudo da USC começou há uma década em dois bancos de Wall Street que deram acesso à pesquisa, sob a condição de permanecerem anônimos.

Alexandra Michel, professora assistente de gestão na Faculdade de Administração Marshall, da USC, seguiu de perto os banqueiros de investimento nos seus escritórios — sentando-se perto deles, acompanhando-os às reuniões, imitando a sua jornada de trabalho e até mesmo varando noites — por mais de 100 horas por semana durante o primeiro ano, cerca de 80 horas por semana no segundo ano, e então deu sequência com entrevistas pessoais.

O estudo será publicado na próxima edição da “Administrative Science Quarterly”, que deve sair ainda este mês.

Durante os dois primeiros anos, os jovens executivos trabalharam em média 80 a 120 horas por semana, mas se mantiveram animados e cheios de energia, diz ela. Normalmente, chegavam às 6 da manhã e saíam por volta de meia-noite.

Ao chegar o quarto ano, porém, muitos deles estavam em péssimas condições, segundo o estudo. Alguns tinham muita carência de sono e culpavam seu organismo por impedi-los de terminar seu trabalho. Outros desenvolveram alergias e dependência de substâncias químicas. Outros, ainda, foram diagnosticados com problemas de saúde de longo prazo, tais como doença de Crohn, psoríase, artrite reumatóide e doenças da tiróide.

Enquanto isso, as “vantagens” oferecidas pela empresa, tais como refeições trazidas ao local de trabalho e motoristas, também aos poucos apagaram a divisão entre o trabalho e a vida pessoal.

Um vice-presidente descreveu o trabalho como um pesadelo eterno, acordando todas as manhãs e desejando que o dia anterior tivesse sido “apenas um sonho mau”. Outro vice-presidente disse que ele estava com tanto medo que os outros notassem o seu alcoolismo que “vivia perdendo metade do que diziam”.

Ao chegar ao sexto ano de trabalho, os participantes, agora na faixa dos 30 e poucos anos, se dividiam em dois grupos: 60% continuavam “em guerra” contra seu próprio corpo, e os outros 40% haviam decidido dar prioridade à saúde, ou seja, davam mais atenção ao exercício, sono e alimentação e só permitiam que o trabalho os consumisse até certo ponto.

© 2011 Wall Street Journal (www.wsj.com)
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Arab Media Forum: Role of media spokesperson under scrutiny

Dubai The role of a media spokesperson was the topic of debate during the morning session of the opening day of the Arab Media Forum (AMF) 2012. The differences between Arab and foreign spokespeople were discussed.

During the session titled ‘The Official Foreign Spokespersons: An Expanding Role and Ambiguous Influence’, Abdul Wahab Badrakhan, writer and political analyst, said that there was a disparity between Arab and foreign spokespeople.

"It is near impossible to get in contact with an Arab spokesperson.

"When you do, he has nothing useful to say, and you can feel the lack of communication between him and the department he represents."

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© 2011 Gulf News (www.gulfnews.com)
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EUA vivem boom de petróleo

Agências federais americanas devem confirmar na segunda-feira o que a indústria da energia já sabe: a produção de petróleo está aumentando nos Estados Unidos.

Bloomberg News

Operações de uma petrolífera na Dakota do Norte. Este Estado americano viu sua produção de petróleo triplicar nos últimos cinco anos.

A Agência de Informações sobre Energia dos EUA provavelmente aumentará de forma substancial sua estimativa atual, segundo a qual a produção petrolífera do país vai crescer em 550 mil barris por dia até 2020, quando atingirá pouco mais de seis milhões de barris diários.

A previsão vai computar novos dados da produção de campos de petróleo em desenvolvimento, incluindo a área de xisto de Bakken, no Estado de Dakota do Norte, que pode conter até 4,3 bilhões de barris de petróleo recuperável. A produção de Dakota do Norte de petróleo e produtos líquidos relacionadas superou 500 mil barris por dia em novembro, o que significa que esse Estado extraiu mais petróleo do que o Equador. Na verdade, a produção de petróleo americana cresceu mais depressa que a de qualquer outro país nos últimos três anos, e continuará crescendo à medida que as empresas perfuradoras se afastam do gás natural, devido ao excesso de gás no mercado, dizem especialistas. O excedente derrubou os preços do gás natural a uma baixa recorde de 10 anos.

A combinação de técnicas que impulsionaram o recente aumento na produção de gás natural — a perfuração horizontal e o fraturamento hidráulico, ou “fracking” — vem se expandindo para os campos petrolíferos nos EUA.

Esse grande aumento na produção de petróleo e líquidos relacionados também usados como combustíveis, como o condensado de petróleo, pode reduzir a dependência dos EUA das importações de petróleo e ajudar a aliviar o déficit comercial do país. Mas pode ter um impacto limitado sobre os preços da gasolina nos EUA, cada vez mais definidos pelas tendências globais de oferta e procura.

O aumento da produção doméstica também não basta para ajudar os EUA a atingirem o difícil ideal de independência energética: a expectativa é de que o país consuma diariamente mais de 19 milhões de barris de petróleo e combustíveis líquidos até 2020.

De 2008 até 2011, a produção americana de uma categoria mais ampla de petróleo e líquidos relacionados cresceu 1,3 milhão de barris por dia, ou mais de 17%, para 8,9 milhões de barris, segundo a firma de pesquisas IHS-CERA. O resultado ultrapassou o da Rússia, onde o crescimento da produção diária foi de cerca de 480.000 barris; da China, com cerca de 380.000 barris, e do Brasil, com crescimento de 340.000 barris diários.

A IHS-CERA prevê que a produção nos EUA pode aumentar em mais 1,3 milhão de barris diários até 2020, chegando a 10,2 milhões de barris.

Esse aumento constitui uma notável inversão da tendência de apenas alguns anos atrás. A produção americana de petróleo e outros combustíveis líquidos atingiu um pico de 11,3 milhões de barris diários em 1970 e a partir daí começou a declinar. O declínio chegou ao ponto mínimo de 7,6 milhões de barris diários em 2008, quando surgiram as novas técnicas de perfuração.

© 2011 Wall Street Journal (www.wsj.com)
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CapitaLand Sees Plenty of Spark in China

Despite all the hand-wringing over China’s growth trajectory, the Middle Kingdom remains a land of milk and honey for Singapore real-estate company CapitaLand Ltd. President and Chief Executive Liew Mun Leong is a longtime bull on China’s property market, often expressing confidence in the macroeconomic fundamentals that fuel housing and commercial-property demand there.

Under his leadership, the developer—Southeast Asia’s largest by market value—expanded aggressively into China over the past decade, and now owns there a portfolio worth about 12 billion Singapore dollars ($9.5 billion), or 38% of the company’s total assets, including residential properties, offices and shopping malls.

Bloomberg News

CapitaLand president and CEO Liew Mun Leong

CapitaLand’s China push isn’t without its detractors, especially among investors who have shied from the stock amid rumblings of a possible hard landing for the Chinese economy and its softening property market.

But Mr. Liew remains unfazed. “Urbanization and economic growth will support demand, and the Chinese people love to buy their own homes,” he said. “Also, there’s no alternative class of investment—they can’t invest outside of China, they don’t understand anything about equities, but they understand how to buy an apartment.”

Mr. Liew shared with Chun Han Wong his views on real-estate trends and management experiences. The following interview has been edited.

WSJ: How has recent market turmoil and global economic woes affected real-estate investment in Asia? Are you concerned about policy risks in your key China and Singapore markets?

Mr. Liew: Asia is still attractive for investors, but they will be selective. For instance, I doubt they will put much money in India. Instead they would look at countries like China, Singapore, Hong Kong, while the more daring ones may put money in Vietnam, even if they may be worried about the macroeconomic situation there.

Cooling measures are good. We’d be worried if there weren’t any; that means people will be speculative, and bubbles will generate. If there are cooling measures, we will account for them, but we won’t slow down or halt our investments.

After the global financial crisis, we bought [Orient Overseas (International)'s real-estate business] for US$2.2 billion. Now with the euro-zone debt crisis, we’ve put S$4.3 billion in Chongqing [for the Chaotianmen mixed-used project]. We can do this because we do our capital management on a long-time-horizon basis.

For China, we’re there for the long term; we have always reinvested our profits there. With the recent cut to the reserve-requirement ratio, China has signaled that they know they have to relax. It won’t be sudden; it will be incremental.

In Singapore, there’s still an underlying shortage of residential units. From 2005 to 2011, the resident population grew 9.3%, or 320,000 people, but the number of dwelling units increased only by 6.4%, or about 70,000 units. The government may intervene from time to time, but the demographics are positive.

WSJ: Credit availability in China is a concern for some real-estate market watchers. How might the industry be affected?

Mr. Liew: The days in which small developers can get started by borrowing a hundred million yuan are gone. Consolidation is possible; more and more will realize the burden of debt and run into trouble. If these companies have good assets, we will look at them for possible acquisitions.

During the global financial crisis, we secured over 20 billion yuan (US$3.16 billion) in credit allocation from the likes of Bank of China, ICBC, Agricultural Bank, and China Merchants Bank. It’s a flight to quality. They have to lend, and between some small Chinese companies—in which they have little confidence—and CapitaLand, who would they choose to lend to?

WSJ: What about prospects closer to home in Southeast Asia and India?

Mr. Liew: I think Vietnam will grow very well in the next five to 10 years. It’s a big economy with a young population—the Vietnamese are hardworking and very prepared to learn—and has got stable government as well. We have a presence in India—serviced apartments and some shopping malls—but progress is slow. We haven’t made money yet. I worked on an IT project in Bangalore back in 1993, but from then till now, I haven’t seen any visible signs of change in the business environment.

WSJ: What’s your approach to managing your large work force and businesses in more than 20 countries?

Mr. Liew: I don’t manage the business; I select the right people and manage them. We’ve been successful in attracting and retaining talent and the key is staying close to them. I spend a lot of time on people—interviewing them, looking at their training, reviewing their postings, and visiting overseas staff regularly. Every year, I give lectures on management and leadership for two days, eight hours a day. Anyone can write to me, and I get many responses to my weekly emails to staff, which address a broad range of business and human topics in a casual, conversational tone.

We also devise a lot of family-friendly policies. For instance, every employee can book a free four-day stay at our Ascott (serviced residences).

WSJ: During the financial crisis, you cut your pay by 20% to avoid retrenching staff. What was the philosophy behind that move?

Mr. Liew: As a company, we all have to pool together and suffer together. I call it the “theory of common happiness and common misery”—something I learned from my days in the Ministry of Defense. I always tell my staff: “I’m not the lao-ban (“boss” in Mandarin). I’m also a salaried worker.” I wasn’t born with a silver spoon in my mouth; I champion the proletariat.

WSJ: What did you take away from your civil-service experience, and how did you manage your transition into the private sector?

Mr. Liew: The civil service taught you integrity—we were “brainwashed” into being honest—and the importance of good corporate governance and compliance. You also learned how to work with systems, and deal with people and policy makers. The Singapore government is very paranoid; they plan for everything. I worked at the Ministry of Defense—and the concept of defense is founded upon paranoia—so I learned to be even more paranoid and plan for things.

But I think I am basically a private-sector person, but was caged in the public sector for too long before I was released to become my natural self. By nature, I am outgoing and more prepared to take risks.

Write to Chun Han Wong at chunhan.wong@dowjones.com

Résumé

Education: Bachelor’s degree in civil engineering, University of Singapore (now the National University of Singapore)

Career: 22 years in the public sector; chief executive of L&M Investments; president of Pidemco Land, which merged with DBS Land to become CapitaLand

Interests: Daily treadmill jogs and qi-gong exercises.

© 2011 Wall Street Journal (www.wsj.com)
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Hong Kong profile

Once home to fishermen and farmers, modern Hong Kong is a teeming, commercially-vibrant metropolis where Chinese and Western influences fuse.

The former British colony became a special administrative region of China in 1997, when Britain's 99-year lease of the New Territories, north of Hong Kong island, expired.

Hong Kong is governed under the principle of "one country, two systems", under which China has agreed to give the region a high degree of autonomy and to preserve its economic and social systems for 50 years from the date of the handover.

Hong Kong's constitution, the Basic Law, provides for the development of democratic processes. However, Beijing can veto changes to the political system and pro-democracy forces have been frustrated by what they see as the slow pace of political reform.

China controls Hong Kong's foreign and defence policies, but the territory has its own currency and customs status.

Hong Kong's economy has moved away from manufacturing and is now services-based. The region is a major corporate and banking centre as well as a conduit for China's burgeoning exports. Its deepwater port is one of the world's busiest.

Companies based in Hong Kong employ millions of workers in the neighbouring Chinese province of Guangdong.

China ceded Hong Kong island to Britain in 1842 after the First Opium War. Britain later added parts of the Kowloon peninsula and the many smaller islands surrounding Hong Kong to its holdings.

In the 19th and 20th centuries Hong Kong's population was boosted by the arrival of hundreds of thousands of migrants from China, many of whom were fleeing domestic upheavals. Industrialisation gathered pace, and by the 1970s Hong Kong had become an "Asian tiger"; one of the region's economic powerhouses.

With little room for expansion across its hilly terrain, high-rise Hong Kong has among the highest population density in the world; some 6,300 people per square kilometre. Skyscrapers and temples, shopping malls and traditional markets sit cheek-by-jowl.

But amid the urban hustle there are quiet parks and green spaces, beaches and mountain-top views.

© 2011 BBC News (www.bbc.co.uk)
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Poland profile

A nation with a proud cultural heritage, Poland can trace its roots back over 1,000 years. Positioned at the centre of Europe, it has known turbulent and violent times.

There have been periods of independence as well as periods of domination by other countries. Several million people, half of them Jews, died in World War II.

A new era began when Poland became an EU member in May 2004, five years after joining Nato and 15 years after the end of communist rule.

It was the birthplace of the former Soviet bloc's first officially recognised independent mass political movement when strikes at the Gdansk shipyard in August 1980 led to agreement with the authorities on the establishment of the Solidarity trade union.

The shoots of political freedom were trampled again 16 months later when communist leader Wojciech Jaruzelski declared martial law. But the movement for change was irreversible. Elections in summer 1989 ushered in eastern Europe's first post-communist government.

The presence in the Vatican of Polish Pope John-Paul II was an important influence on the Solidarity movement throughout the 1980s. The Roman Catholic church remains a very potent force in Polish life.

In the years between the end of communism and EU accession, power in Poland switched between the centre right and the centre left. Successive governments faced sleaze allegations.

The country has had some success in creating a market economy and attracting foreign investment. There was a massive movement of workers to western Europe in the years after Poland joined the EU, but the exodus slowed down after the global economic crisis took hold.

Poland still has a huge farming sector – agriculture accounts for about 60% of the country's total land area – which is unwieldy and very inefficient. Poverty is particularly widespread in rural areas.

Warsaw's profile on the international stage was raised by its support for the US-led military campaigns in Iraq and Afghanistan. Polish peacekeeping troops served in south-central Iraq from 2003 until 2008, and the country has also contributed a sizeable contingent to the Nato peacekeeping force in Afghanistan.

© 2011 BBC News (www.bbc.co.uk)
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IBM’s ‘building whisperer’ sees retrofit boom


NEW YORK |
Tue May 8, 2012 11:38am EDT

NEW YORK (Reuters) – America’s skyscrapers, many built before World War Two, are showing their age. IBM’s “building whisperer,” Dave Bartlett, believes many of these buildings could use a diet.

Bartlett, who leads IBM’s smarter building initiative, is known as the “building whisperer” because he views buildings as living organisms, an approach that can help identify problems and suggest cost-effective ways of making buildings healthier and more energy-efficient.

Bartlett is bullish about demand for building retrofits, a market that electrical service companies and other participants see growing by double-digits for several years.

“In New York City, we’re definitely in the depths of middle age, trying to get a second lease on life,” Bartlett said. “I’m very gung-ho about the outlook for retrofits.”

Getting a building in shape is a lot like eating right. Under this approach, dubbed “the physiology of buildings,” a heating and cooling system is akin to the respiratory system; elevators and corridors are a circulatory system; and a building’s smart sensors with sophisticated computer monitoring are the nervous system.

Each system affects others: water meters in bathrooms work together with security systems to analyze occupancy, affecting how quickly the building breathes in fresh air. Lighting, by heating a space, affects how much power is used for cooling. With the right data, an owner can decide whether replacing air conditioners makes better sense than a new roof.

The interaction of those systems adds up to an ecosystem that can be measured and improved, like a visit to the doctor or a gym membership. Bartlett, who studied biology, eventually sees buildings forming part of a wider ecosystem that brings nature into cities, making them more literally “green.”

IBM is in the early stages of greening New York’s massive convention hall, the Jacob Javits Center, looking at ways to turn its sprawling roof into an animal habitat.

“We think we can create one of the largest green spaces in Manhattan,” Bartlett said.

FAST-GROWING MARKET

Technology giant IBM competes in a market for building automation software that is forecast to reach $36 billion by 2015. The global market for energy efficiency in buildings will reach $103.5 billion by 2017, up more than 50 percent from 2011, according to Pike Research, a consultancy.

The high-profile retrofit of the Empire State Building is becoming a rallying point for advocates who say building retrofits could lift the U.S. economy and create jobs.

“The savings are so significant,” Bartlett said. “It’s a building everyone knows and everyone appreciates.”

Engineers Johnson Controls Inc and its partners on the Empire State retrofit said Monday energy savings are ahead of projections.

Not all retrofits require a lot of capital, according to IBM. Some call for only minor modifications to control systems or the way people operate the building.

Recent upgrades to lighting, security and other systems have led to a proliferation of sensors. The next step is tap the vast data being generated to look for patterns and potential savings, and to improve the quality of life for tenants. For example, heating and a cooling system may both be optimized, but if they are not communicating, they could be working at cross-purposes.

Obstacles remain to a retrofit boom. One of the biggest is a lack of financing for capital-intensive projects. Also, the motivation is split between building owners who commit money and tenants who benefit from lower utility costs, Bartlett said.

However, the cost of leased assets like buildings is increasingly the concern of finance chiefs, especially under accounting rules that make such assets more visible on the balance sheet. Those CFOs will push for smarter use of space, while more tenants are also demanding green work spaces.

“We’re at this tipping point,” Bartlett said. “It’s going to take off.”

(Reporting By Nick Zieminski in New York; editing by Matthew Lewis)

© 2011 REUTERS (www.reuters.com)
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African viewpoint: Last of the Nuba?

In our series of viewpoints from African journalists, film-maker and columnist Farai Sevenzo considers level playing fields and what the crisis between Sudan and South Sudan means for the Nuba people who are caught up in the middle of the conflict.

Ms Riefenstahl's images of the Nuba did not erase from memory her work as Adolf Hitler's favourite filmmaker, but managed to rehabilitate her as an artist, and all African artists should be grateful for what she has managed to preserve for eternity.

Malawi will host an African Union summit in July and their new leader, Madame President Joyce Banda, has called on the AU to decide Mr Bashir's position.

Back in October 2011 Mrs Banda's predecessor, Bingu wa Mutharika, openly defied the International Criminal Court by welcoming Mr Bashir to Malawi and ignored the ICC's ridiculous threats of reporting his country to the UN Security Council.

That made Malawi, Kenya, Chad and Djibouti stand out as those who had refused to arrest Mr Bashir and whose names have been "reported" to the Security Council.

The African Union has told its members to ignore the ICC's warrant of arrest as it only targets Africans, and on current evidence, that is a difficult point with which to argue.

Mrs Banda, though, found a perfectly reasonable defence for wanting Mr Bashir to stay away.

"Malawi is already going through unprecedented economic problems and… it would not be prudent to allow one person to come and attend the summit against much resistance from our co-operating partners and donors," she told journalists in Lilongwe.

"Such kind of decisions cost us the USA Millennium Challenge Co-operation. At the end of the day Malawi will have to seriously take into consideration the economic repercussions of hosting President al-Bashir in Malawi."

And we learn that Malawi lost $350m (£217m) for an energy boost co-operation which was withheld by Washington last time Mr Bashir came calling.

So what does this tell us besides the fact that the playing field is never level, even in the case of our political criminals?

It says that the Nuba have some way to go for justice when they just want the bombs to stop, that the ICC's close proximity to the Security Council dilutes its authority, that justice served by paying witnesses as is alleged in the Charles Taylor case, may be as futile as bribing small nations like Malawi into arresting an African leader for more aid funds.

If you would like to comment on Farai Sevenzo's column, please do so below.

© 2011 BBC News (www.bbc.co.uk)
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Georgia country profile

Situated at the strategically important crossroads where Europe meets Asia, Georgia has a unique and ancient cultural heritage, and is famed for its traditions of hospitality and cuisine.

Over the centuries, Georgia was the object of rivalry between Persia, Turkey and Russia, before being eventually annexed by Russia in the 19th century.

Since emerging from the collapsing Soviet Union as an independent state in 1991, Georgia has again become the arena of conflicting interests, this time between the US and a reviving Russia. Tense relations with Russia have been further exacerbated by Moscow's support for the separatist regions of Abkhazia and South Ossetia.

Georgia's brief interlude of independence after the 1917 Bolshevik revolution in Russia ended when it was invaded by the Soviet Red Army in 1921 and incorporated into the Soviet Union a year later.

The US has a major strategic interest in the country, having invested heavily in an oil pipeline from Azerbaijan via Georgia to Turkey. The Georgian armed forces have been receiving US training and support.

Increasing US economic and political influence in the country has long been a source of concern for the Kremlin, as have Georgia's aspirations to join NATO and the EU.

Tensions between Moscow and Tbilisi are never far from the surface and in August 2008 flared up into an armed conflict triggered by clashes between Georgian troops and South Ossetian separatist forces.

Following the collapse of communism in the USSR in 1991, Georgians voted overwhelmingly for the restoration of independence and elected nationalist leader Zviad Gamsakhurdia as president. However, Gamsakhurdia was soon overthrown by opposition militias which in 1992 installed former Soviet Foreign Minister Eduard Shevardnadze as the country's new leader.

During his 11 years in office, the Georgian people felt increasingly at the mercy of poverty, corruption and crime. He was ousted in November 2003 following mass demonstrations over the conduct of parliamentary elections.

Once a relatively affluent part of the USSR, with independence Georgia lost the cheap energy to which it had access in the Soviet period. As relations between Georgia and Russia deteriorated, Moscow did not flinch from tightening the economic screws, and the rupturing of trading ties caused the Georgian economy to nose-dive.

Georgia has been heavily dependent on Russia for its energy supply. Like some other republics of the former Soviet Union, it saw the price of gas supplied by the Russian gas giant Gazprom rise sharply in January 2006. Gazprom has since doubled the price again. It is no coincidence that Georgia has started receiving an increasing proportion of its gas from Azerbaijan.

Since independence, the people of Georgia have endured periods of civil war and unrest as well as violence related to the independence aspirations of the breakaway regions of Abkhazia and South Ossetia. Both regions had close ties with Moscow, which in August 2008 announced it was formally recognising their independence.

Russian troops had operated there since the early 1990s, and were regularly accused by Georgia of siding with the separatists.

© 2011 BBC News (www.bbc.co.uk)
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