Download pdf - WADE P. Music, Blackness and Nationa Identity

0XVLF%ODFNQHVVDQG1DWLRQDO,GHQWLW\7KUHH0RPHQWVLQ&RORPELDQ+LVWRU\$XWKRUV3HWHU:DGH6RXUFH3RSXODU0XVLF9RO1R-DQSS3XEOLVKHGE\Cambridge University Press6WDEOH85/http://www.jstor.org/stable/853270 .$FFHVVHG

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

Cambridge University Press is collaborating with JSTOR to digitize, preserve and extend access to PopularMusic.

http://www.jstor.org

This content downloaded from 202.184.111.77 on Thu, 16 May 2013 00:35:18 AMAll use subject to JSTOR Terms and Conditions

3RSXODU0XVLF9ROXPH&RS\ULJKW# &DPEULGJH8QLYHUVLW\3UHVV3ULQWHGLQWKH8QLWHG.LQJGRP

0XVLFEODFNQHVVDQGQDWLRQDOLGHQWLW\WKUHHPRPHQWVLQ&RORPELDQKLVWRU\3(7(5 :$'(

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

,QZKDWIROORZV,H[DPLQHDVVXPSWLRQVDERXWQDWLRQDOLVPDQGWKHQORRNDWKRZ,WKLQNWKH\XQGHUOLHVRPHUHFHQWDFFRXQWVRIPXVLFDQGWKHUHSUHVHQWDWLRQRIQDWLRQDOLGHQWLW\LQ/DWLQ$PHULFD,ZLOOWKHQORRNDWVRPHVW\OHVRI&RORPELDQSRSXODUPXVLFLQDZD\WKDW,KRSHWDNHVXVIXUWKHULQWKHXQGHUVWDQGLQJRIKRZPXVLFDQGQDWLRQEXLOGLQJILWWRJHWKHU

1DWLRQDOLGHQWLW\$QGHUVRQDQG*HOOQHUERWKHPSKDVLVHWKHLPSRUWDQFHRIKRPRJHQHLW\LQWKHLGHRORJLHVRIPRGHUQQDWLRQDOLVP7KHQDWLRQLVFKDUDFWHULVHGE\LWV

FRPPXQLW\RIDQRQ\PLW\$QGHUVRQSWKHLGHQWLILFDWLRQRIWKHFLWL]HQZLWKRWKHUXQNQRZQFRPSDWULRWVLQDFRPPRQDOOHJLDQFHWRWKHQDWLRQLWVHOI7KLVTXDOLW\LVFUHDWHGDFFRUGLQJWR$QGHUVRQSULPDULO\E\VSUHDGLQJOLWHUDF\DQGSULQWFDSLWDOLVPZKLFKDOORZSHRSOHWRLPDJLQHDFRPPXQLW\RIQDWLRQDOV$SUHFRQGLWLRQLVWKHHPHUJHQFHRIDFRQFHSWRIKRPRJHQHRXVHPSW\WLPH:DOWHU%HQMDPLQFLWHGLQ$QGHUVRQSLQZKLFKSHRSOHFDQLPDJLQHWKHLUDFWLRQVEHLQJVLPXOWDQHRXVZLWKWKRVHRIRWKHUVORFDWHGHOVHZKHUHLQWKHQDWLRQ)RU*HOOQHU

KRPRJHQHLW\OLWHUDF\DQGDQRQ\PLW\DUHWKHNH\WUDLWVS0RGHUQLVLQJSURGXFWLRQV\VWHPVQHHGHG HGXFDWHGSHRSOH ZKR FRXOGPDQDJHLQIRUPDWLRQLQFOXGLQJLQVWUXFWLRQVDERXWSURGXFWLRQ7KXVDOLWHUDWHKLJKFXOWXUHSUHYLRXVO\


3HWHU:DGH

WKHSUHURJDWLYHRIUXOHUVEHJDQWRSHUYDGHWKHHQWLUHVRFLHW\FUHDWLQJDQLGHQWLILFDWLRQZLWKDQDQRQ\PRXVPDVVVRFLHW\*HOOQHUS

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

1RZ,GRQRWRIFRXUVHZLVKWRVXJJHVWWKDWDOOWKHVHDSSURDFKHVDUHVLPSO\EDUNLQJXSWKHZURQJWUHH,GRWKLQNWKDWWKHDQDO\VLVRIKHWHURJHQHLW\LVQRWDGHTXDWH7KHUHLVDWHQGHQF\WRRYHUVLPSOLI\WKHEDVLFRSSRVLWLRQEHWZHHQKRPRJHQLVLQJQDWLRQEXLOGHUVDQGKHWHURJHQHRXVRWKHUVVRPHWLPHVZHGGHG WRWKHLPSOLFDWLRQRIVWUDWHJLFLQWHQWLRQDOLW\RQWKHSDUWRIWKHHOLWHDQGRUWKHVXEDOWHUQ7KHUHLVDOVRDWHQGHQF\WRURPDQWLFLVHUHVLVWDQFHDOWKRXJKWKLVLVQRWP\PDLQFRQFHUQKHUH$EX/XJKRG

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


7KUHHPRPHQWVLQ&RORPELDQKLVWRU\

WHPSRUDQHLW\DVWKDWVLJQRIWKHSUHVHQWWKRXJKZKLFKQDWLRQDOOLIHLVUHGHHPHGDQGLWHUDWHGDVDUHSURGXFWLYHSURFHVVLELGS

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

FXOWXUDOVKUHGVDQGSDWFKHV*HOOQHUSRIWKHQDWLRQDUHLQYRNHG,QWKHILUVWPRGHWKHQDWLRQDQGLWVSHRSOHDUHPRYLQJWKURXJKKLVWRU\WRZDUGVDQDWLRQDOGHVWLQ\RIFRKHUHQWLGHQWLW\WKH\DUHDPRGHUQLVLQJKRPRJHQLVLQJZKROH,QWKHVHFRQGPRGHGHSULYHGRIWKLVKLVWRULFLVPWKHQDWLRQWXUQVIURPEHLQJWKHV\PERORIPRGHUQLW\LQWREHFRPLQJWKHV\PSWRPRIDQHWKQRJUDSK\RIWKHFRQWHPSRUDU\ZLWKLQPRGHUQFXOWXUH%KDEKDS,QWKLVHWKQRJUDSK\WKHKHWHURJHQHLW\RIWKHSHRSOHQHFHVVDULO\FRPHVWROLJKWEHFDXVHWKHIRFXVLVRQWKHUHSHWLWLYHSHUIRUPDQFHVRIWKHLUGDLO\OLYHVZKLFKHIIHFWLYHO\FRQVWLWXWHWKHQDWLRQVFXOWXUH7RUDWKHURYHUVLPSOLI\WKHGLVWLQFWLRQLVVLPLODUWRORRNLQJDWWKHQDWLRQIURPWKHLQVLGHRXWZKHQLWLVDZKROHPDUFKLQJWKURXJKKLVWRULFDOWLPHDVRSSRVHGWRVHHLQJLWIURPZLWKLQZKHQLWLVZKDWSHRSOHGRZLWKWKHLUOLYHV7KHSRLQW,ZLVKWREULQJRXWLVWKDWUDWKHUWKDQFUHDWLQJDQRSSRVLWLRQEHWZHHQDGRPLQDQWVWDWHRUUXOLQJFODVVEHQWRQKRPRJHQHLW\DQGDYDULHGSRSXODFHZKRWRDJUHDWHURUOHVVHUH[WHQWYLQGLFDWHWKHLUKHWHURJHQHLW\DJDLQVWWKLVRSSUHVVLYHIRUFH%KDEKDVKRZVWKDWWKHQDWLRQDOLVWQDUUDWLYHFDUULHVWKLVVSOLWDVDOLPLQDOVSDFHZLWKLQLWVHOIVOLGLQJDPELYDOHQWO\IURPRQHHQXQFLDWRU\SRVLWLRQWRDQRWKHUS

7KLVJHWVXVEH\RQGDQHPSKDVLVRQWKHWUDLQLQJDQGSUXQLQJRIGLYHUVLW\WKDWDOWKRXJKYHU\XVHIXODQGUHPLQLVFHQWRI+DOOVLGHDRIGLIIHUHQFHVEHLQJ

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


3HWHU:DGH

7KHUHLVPRUHDWVWDNHKHUHWKDQMXVWDUHFRJQLWLRQWKDWRIILFLDOPXOWLFXOWXUDOLVPH[LVWVIRUH[DPSOHLQ&RORPELD:DGHEHFDXVHVXFKDVLWXDWLRQFDQEHUHGXFWLYHO\H[SODLQHGDVDVWDWHVWUDWHJ\WRFRRSWDQGFRQWDLQWURXEOHVRPHGLYHUVLW\0\DUJXPHQWLVWKDWWKHGLYHUVLW\LVSDUWDQGSDUFHORIQDWLRQEXLOGLQJZKHWKHURU QRW PXOWLFXOWXUDOLVPLV DQ RIILFLDOVWDQFH DQG WKDWGLYHUVLW\LV LWVHOIUHFRQVWLWXWHGWKURXJKQDWLRQEXLOGLQJDQG QRWMXVWWDPHGRUEDWWHUHGLQWRVXEPLVVLRQ

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



SULQFLSOHWKDWLVRULHQWHGE\WKHYDOXHVRIWKHGRPLQDQWFODVV$OWKRXJKVXFKDYLHZFDQEHGLVWRUWHGLQWRDQHOLWHYHUVXVPDVVHVRSSRVLWLRQ

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

'DYLV VHHVPHUHQJXHLQD VLPLODUOLJKW8QGHU7UXMLOORWKH$IULFDQURRWVRIPHUHQJXHZHUHGHQLHGDOWKRXJKRWKHUVFRQWHVWHGWKLVHUDVXUHRIEODFNQHVV'DYLVSDJDLQDUHODWLYHO\VLPSOHRSSRVLWLRQDOPRGHOLVLPSOLHG'DYLVFRPSOLFDWHVWKLVDOLWWOHE\VWDWLQJWKDWPHUHQJXHKDVDGXDODVSHFWGLIIHUHQWDVSHFWVRI'RPLQLFDQLGHQWLW\WUDGLWLRQDODQGPRGHUQUXUDODQGXUEDQDUHUHSUHVHQWHGE\WUDGLWLRQDOPHUHQJXHDQGRUFKHVWUDWHGPHUHQJXHLELGSEXWWKLVLQVLJKWLVQRWWKHRULVHG

)RU'XDQ\LQVRPHFRQWUDVWWKHNH\WRPHUHQJXHVVXFFHVVDVDQDWLRQDOPXVLFZDVLWVHYLGHQW$IUR(XURSHDQV\QFUHWLVPSHYHQWKRXJK7UXMLOORXVHGLWDVSDUWRIKLVFDPSDLJQDJDLQVW+DLWLDQLQIOXHQFHVZKLFKZHUHVHHQDVVWURQJO\$IULFDQ1HYHUWKHOHVV'XDQ\VHHVPHUHQJXHDVDV\PERORIWKH'RPLQLFDQVHQVHRISHRSOHKRRG SDQGGRHVQRWUHDOO\GHFRQVWUXFWWKHLGHDRISHRSOHKRRGWKXVDEURJDWLQJWKHSUREOHPRIGLYHUVLW\

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

PXVLFDOFRUROODU\WRSRSXOLVWSROLWLFDOPRYHPHQWVLELGS

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


3HWHU:DGH

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

0XVLFDQGQDWLRQDOLGHQWLW\LQ&RORPELD,ZDQWQRZWRORRNDWWKUHHPRPHQWVLQWKHKLVWRU\RI&RORPELDVSRSXODUPXVLFWKHODWHQLQHWHHQWKFHQWXU\ZLWKWKHHPHUJHQFHRID QDWLRQDOVW\OHWKHPLGWZHQWLHWKFHQWXU\ERRPRIWURSLFDOPXVLFVW\OHVDQGWKHVHPHUJHQFHRISRVWPRGHUQQRVWDOJLFUHYLYDOVRIPRGHUQLVHGWUDGLWLRQ



%DPEXFR,QXUEDQDUHDVGXULQJWKHQLQHWHHQWKFHQWXU\GDQFHVRULJLQDWLQJLQ(XURSHVXFKDVWKHZDOW]FRQWUDGDQ]DSRONDDQGPD]XUNDZHUHSRSXODUDPRQJUHVSHFWDEOHSHRSOH LQ&RORPELDSOD\HGLQWKHLUVDORQVRQSLDQRDQG VWULQJLQVWUXPHQWVDOWKRXJKWKH\ZRXOGKDYHEHHQKHDUGE\D UDQJHRIFODVVHVZKHQSOD\HGE\PLOLWDU\EDQGVGXULQJSXEOLFIHVWLYDOV7KHVH(XURSHDQIRUPVZHUHVRPHWLPHV

FUHROLVHGWRSURGXFHQHZIRUPVVXFKDVWKHSDVLOORDIRUPRIZDOW]SRSXODULQ9HQH]XHOD&RORPELDDQG(FXDGRU)RUWKHXSSHUFODVVHVUHJLRQDOYDULDWLRQLQWKLVVRUWRIPXVLFZDVQRWYHU\PDUNHGWKHVDPHPXVLFZDVOLVWHQHGDQGGDQFHGWRLQ%RJRWDLQWKH$QGHDQLQWHULRURIWKHFRXQWU\DQGLQ&DUWDJHQDRQWKH&DULEEHDQFRDVW+RZHYHUWKHUHZHUHDOVRXUEDQLVHGYHUVLRQVRIPRUHYDULHGUHJLRQDOUXUDOVW\OHVDQGKHUHWKHUHZDVPRUHGLYHUVLW\

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

7RZDUGVWKHHQGRIWKHQLQHWHHQWKFHQWXU\PXVLFLQ&RORPELDEHJDQWREHLQWHJUDWHGLQWRGLVFRXUVHVDERXWQDWLRQDOLGHQWLW\DQGLWZDVEDPEXFRRIWKHLQWHULRUUHJLRQVVWULQJHQVHPEOHVWKDWWRRNSULGHRISODFH7KHSDVLOORZKLFKZDVDFWXDOO\PRUHZLGHVSUHDGGLGQRWDFTXLUHWKHVDPHQDWLRQDOLVWRYHUWRQHVSUREDEO\EHFDXVHLWZDVSRSXODULQVHYHUDOQHLJKERXULQJFRXQWULHV7KHDXWKRUMRXUQDOLVWDQGSROLWLFLDQ-RVH0DULD6DPSHUVDLGRIWKHEDPEXFRWKDW>7KHUHLV@QRWKLQJPRUHQDWLRQDOQRWKLQJPRUHSDWULRWLFWKDQWKLVPHORG\ZKLFKFRXQWVDOO&RORPELDQVDPRQJLWVDXWKRUV,WLVWKHVRXORIRXUSXHEOR>SHRSOHQDWLRQ@PDGHLQWRPHORG\$FFRUGLQJWR%DOGRPHUR6DQLQ&DQRDQHGXFDWRUFULWLFMRXUQDOLVWDQGSROLWLFLDQ%DPEXFRUHVRXQGVZLWKWKHKHDUWEHDWV>SDOSLWDFLRQHV@RIWKHIDWKHUODQG,QWKHZRUGVRIWKHKLVWRULDQ/XLV$QJHO&XHUYR7KHKLVWRU\RIEDPEXFRLVWKHKLVWRU\RIWKHZKROH5HSXEOLFRILWVVRFLHWLHVDQGLWVLQGLYLGXDOV:ULWLQJLQ(GXDUGR&DEDOOHUR&DOGHUQEZULWHUMRXUQDOLVWDQGSROLWLFLDQDIILUPHGWKDW:LWKRXWEDPEXFRWKHIDWKHUODQGZRXOGQRWEHFRQFHLYHGDOOFLWHGLQ3HUGRPR(VFREDUS 1RWVXUSULVLQJO\HYHQWRGD\WKHWHUPPEVLFDFRORPELDQDLVWDNHQWRPHDQEDPEXFRDQGRWKHUVW\OHVFKDUDFWHULVWLFRIWKH$QGHDQLQWHULRU

%DPEXFRDORQJZLWKSDVLOORDQGRWKHUVW\OHVIURPWKHLQWHULRUSURYLGHGWKHLQVSLUDWLRQIRUQDWLRQDOLVWDUWPXVLFE\&RORPELDQFRPSRVHUVVXFKDV*XLOOHUPR8ULEH+ROJXLQ%GKDJXHS$EDGLD0RUDOHVQRWHVKRZEDPEXFRVKDG


3HWHU:DGH

DVO\ULFVVHOHFWSRHWU\WDNHQIURPDXQLYHUVDOUHSHUWRLUHRUVRPHWLPHVIURPHPLQHQWSRHWVS2QWKHRWKHUKDQGEDPEXFRVZHUHSHUIRUPHGE\PRUHSRSXODUPXVLFLDQVVXFKDV3HGUR0RUDOHV3LQR(PLOLR0XULOOR$OHMDQGUR:LOOVDQG-RUJH$ILH]5HVWUHSR'XTXH 6HYHUDORIWKHVHUHFRUGHGLQ1HZ


6SDQLVKRULJLQVRPHKXQGUHGSDJHVDUHJLYHQRYHUWRGLVFXVVLQJSRVVLEOHLQGLJHQRXVDQG$IULFDQRULJLQVLQWKHSURFHVV'DYLGVRQSS

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

7KHFRQWH[WIRUWKHHPHUJHQFHDQGULVHRIWKLVPXVLFZDVLQEURDGWHUPVWKHUDSLGVRFLDOFKDQJHDQGSURFHVVRILQWHUQDWLRQDOLVDWLRQWKDWZDVJRLQJRQLQ&RORPELDDQGHOVHZKHUH(FRQRPLFDOO\&RORPELDZDVH[SDQGLQJLQWHUQDOO\DV


3HWHU:DGH

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



SWKHUHZHUHDOVRGLVFXVVLRQVDERXWQDWLRQDOYDOXHVLQDUW0HGLQDS

,QFLWLHVVXFKDV%RJRWDDQG0HGHOOLQ&RVWHILRPXVLFZDVSOD\HGLQHOLWHFOXEVDQGKRWHOVEXWDOVREURDGFDVWRQUHFRUGDQGOLYHE\UDGLRVWDWLRQV,WFRXOGEHKHDUGRQUHFRUGLQEDUVEURWKHOVDQGFDIHVDQGOLYHDW6XQGD\SHUIRUPDQFHVLQSXEOLFSDUNVZKHUHPLGGOHFODVVIDPLOLHVVWUROOHGLQWKHPRUQLQJVEXWPDLGVDQGPDQXDOZRUNHUVWRRNRYHULQWKHDIWHUQRRQ%XWLWVSUHVHQFHH[FLWHGDJRRGGHDORIFRPPHQWVRPHRILWUHDFWLRQDU\

'DQLHO=DPXGLRVSHDNHUDWWKHFRQIHUHQFHRQPXVLFODPHQWHGWKDWWKHUXPEDDQGLWVGHULYDWLYHVSRUURVVRQVEROHURVDUHGLVSODFLQJRXUWUDGLWLRQDODXWRFKWKRQRXVDLUVWDNLQJDIDYRXUHGSODFHLQVRFLDOGDQFHVDQGVDORQVDQGDGGHGWKDWDOWKRXJKWKLVLVQRWRIJUHDWLPSRUWDQFHIURPWKHDUWLVWLFDQGDHVWKHWLFSRLQWRIYLHZLWLVQRQHWKHOHVVFHUWDLQWKDWDSURFHVVRISXULILFDWLRQLVWDNLQJSODFHZKLFKLILWLVWRRODWHZLOOJLYHULVHWRDQHZFRQIXVLRQVLQFHIDVKLRQPD\UXLQWKHOLWWOHWUXO\JHQXLQHWKDWZHKDYH+HOLQNVSRUURWKH&RVWHIa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

$HGLWLRQRIWKHQDWLRQDOGDLO\(O7LHPSRFDUULHGDQDUWLFOHHQWLWOHG

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


3HWHU:DGH

DQG WKXVWRD VXSSRVHGO\SULPLWLYHEODFNOLFHQWLRXVQHVV7KXVSULPLWLYHQHVVEHFRPHVPRGHUQWUXO\DVLJQRIFRQIXVLQJWLPHV

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aUTXH]S7KHULJKWRI&RVWHILRFXOWXUHWRQDWLRQDOFLWL]HQVKLSZDVUHDIILUPHGVHHDOVR*LODUG



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

1RZ&RVWHILRPXVLFZRUNHGEHWZHHQWUDGLWLRQDQGPRGHUQLW\LQDPELYDOHQWZD\VODUJHO\EHFDXVHWUDGLWLRQDQGPRGHUQLW\WKHPVHOYHVIRUPDYHU\SRZHUIXOEXWDOVRDPELYDOHQWGLVFXUVLYHSDLU%HFDXVHRILWVUHJLRQDOURRWVWKHPXVLFFRXOG


3HWHU:DGH

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

7KHV6LQFHWKHVDQGVWKHSRSXODUPXVLFVFHQHLQ&RORPELDKDVFKDQJHGJUHDWO\7KH&RVWHILRPXVLFRIWKHGDQFHEDQGVZHQWWKURXJKSURFHVVHVRI6FDOLQJGRZQVPDOOHUPRUHHOHFWULILHGOLQHXSVWRRNRYHU,QFUHDVLQJFRPPHUFLDOLVDWLRQPRUHQDWLRQDOUHFRUGFRPSDQLHVHPHUJHGSODFLQJPRUHEDQGVRQWRWKHPDUNHW,QWHUQDWLRQDOLVDWLRQLQWKHVFXPELDWRRNRYHUIURPSRUURDQGEHFDPHDELJVXFFHVVLQYDULRXV/DWLQ$PHULFDQFRXQWULHVHVSHFLDOO\0H[LFR

3XULVWVVDZDOOWKLVDVDSURFHVVRIGHJHQHUDWLRQDORVVRIDXWKHQWLFLW\UHFRUGFRPSDQLHVVDZLWDVDVXFFHVV

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

1RZWKHVXFFHVVRI9LYHVPXVLFDQGLQGHHGWKHUHYLYDORI&RVWHILRPXVLFLQJHQHUDOILWVLQWRLGHDVDERXWSRVWPRGHUQFXOWXUDOIRUPDWLRQVWKHSDVWLVSOXQGHUHGDVDFXOWXUDOFRPPRGLW\QRVWDOJLDDUJXDEO\DOZD\VSUHVHQWLQPRGHUQLW\EHFRPHVDQLQFUHDVLQJO\VDOHDEOHLWHPWLPHLVIODWWHQHGVRWKDWSDVWDQGSUHVHQWDUHDFROODJHDQGWKHUHLVDFHOHEUDWLRQRIFXOWXUDOGLYHUVLW\+DUYH\7XUQHU3HUKDSVQRWFRLQFLGHQWDOO\&RORPELDDGRSWHGDQHZFRQVWLWXWLRQLQWKDWIRUPDOO\UHFRJQLVHGWKHFRXQWU\DVDSOXULHWKQLFDQGPXOWLFXOWXUDOQDWLRQDQGWKDWJDYHVSHFLDOULJKWVWRLQGLDQDQGEODFNFRPPXQLWLHV:DGH7KLVDJDLQVHHPVWRILWLQWRDSRVWPRGHUQFHOHEUDWLRQRIGLYHUVLW\%XW,DUJXHLIZHORRNDWKRZGLYHUVLW\KDVDOZD\VEHHQLQWHQVLRQZLWKVDPHQHVVHYHQZLWKLQQDWLRQDOLVWGLVFRXUVHWKHQWKLVIRUPDODGRSWLRQRIPXOWLFXOWXUDOLW\ZKLOHLWGRHVPDNHDVLJQLILFDQWGLIIHUHQFHLQWHUPVRIWKHOHJDOULJKWVDFFRUGHGWRPLQRULWLHVFDQDOVREHVHHQDVDOHVVUDGLFDOEUHDNZLWKWKHSDVWWKDQLWILUVWDSSHDUVOHVVDVZLWFKDZD\IURPDPRQROLWKLFUHSUHVVLYHGLVFRXUVHRIKRPRJHQLVDWLRQWKDQDQHZVODQWRQWKHFRQVWDQWVOLGLQJEHWZHHQKRPRJHQHLW\DQGKHWHURJHQHLW\EHWZHHQWUDGLWLRQDQGPRGHUQLW\

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


3HWHU:DGH

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

6HHLQJPXVLFDVFRQVWLWXWLYHRIDVZHOODVUHSUHVHQWLQJVRFLDOSRVLWLRQLQJVLVLPSRUWDQWWRR,IPXVLFLVVHHQDVDPHDQVRILPDJLQLQJFRPPXQLWLHV DQGWKHUHE\FRQVWLWXWLQJWKHPWKHQWKLVRSHQVXSIOH[LELOLW\LQJUDVSLQJLWVUHSUHVHQWDWLRQDOUROH,WPDNHVLWHDVLHUWRVHHKRZDJLYHQVW\OHRIPXVLFFDQEHVHHQDVDQDWLRQDOXQLW\DQGD GLYHUVLW\:KDWPXVLFFDQUHSUHVHQWLVPRUHFRQWH[WXDOGHSHQGLQJRQZKRVHLPDJLQLQJVDUHRSHUDWLQJDQGLQZKDWZD\V&RVWHILRPXVLFFDQFRQVWLWXWHWKHQDWLRQDVDQLPDJLQHGFRPPXQLW\ZKHQSHRSOHGDQFLQJDQGOLVWHQLQJWRLWLPDJLQHRWKHUVGRLQJVRDOORYHUWKHFRXQWU\LWUHSUHVHQWVWKHQDWLRQEHFDXVHQDWLRQDOVKDYHLPDJLQHGWKHPVHOYHVDVVXFKE\OLVWHQLQJWRLW$OWHUQDWLYHO\LWFDQFRQVWLWXWHWKH&RVWHILRVDVDUHJLRQDOJURXSZKHWKHULQWKHLUUHJLRQRUDVDQHWZRUNRIPLJUDQWVLQ%RJRWDRU0HGHOOLQ7KHSURFHVVRILPDJLQLQJZRUNVEHWZHHQXQLW\DQGGLYHUVLW\7KLVLVQRWWRVD\WKDWWKHSURFHVVRILPDJLQLQJFRPPXQLWLHVQDWLRQDORURWKHUZLVHLVDUDQGRPSURFHVV,PDJLQLQJVDUHSDUWDQGSDUFHORIWKHVRFLDOUHODWLRQVRQHOLYHVDQGDUHDVVWUXFWXUHGDVWKH\DUH7KHSRLQWLVWKDWPXVLFFDQEHDSURFHVVRILPDJLQLQJDQGWKXVOLYLQJGLIIHUHQWVHWVRIVRFLDOUHODWLRQVUDWKHUWKDQMXVWUHSUHVHQWLQJWKHP

(QGQRWHV)RU /DWLQ $PHULFD 5RZH DQG 6FKHOOLQJ

SS JLYHYDULRXV FDVHV RIQDWLRQDOLVWSURMHFWVHVSHFLDOO\LQWKHFRQWH[WRISRSXOLVWDWWHPSWVWRFRQVWUXFWWKHSHRSOH DV D QDWLRQDOERG\IRUPRVWRIWKHVHWKHUHLVDQHPSKDVLVRQWKHLPSRVLWLRQRIKRPRJHQHLW\E\WKHVWDWHRUSRSXOLVWLQWHOOHFWXDOV7KH\QRWHKRZHYHUWKDW2FWDYLR3D]V (O ODEHULQWRGHODVROHGDG

RIIHUVERWK LPPRELOHDUFKHW\SHV>GUDZQIURPDQFLHQWLQGLJHQRXVKLVWRU\@DQG WKHXQVWDEOHPDVNVRIDPRGHUQVRFLHW\>GUDZQIURPWKH 0H[LFDQ PLJUDQW@5RZH DQG6FKHOOLQJS

0LGGOHWRQVWUHDWPHQWLVFRPSOH[DQGWKHVHDUHKLVEURDGFULWLFLVPVRIFXOWXUDOLVPDVDQDSSURDFK0DQ\RIWKHDFWXDOVWXGLHVKHORRNVDW SDUWLFXODUO\WKH%LUPLQJKDP&HQWUHIRU&XOWXUDO6WXGLHV DSSURDFK H[HPSOLILHGLQ

+DOO DQG-HIIHUVRQ FOHDUO\DGGUHVVWKHVHSUREOHPVDWVRPHOHYHOVHH6WRNHVS HYHQLIQRWHQWLUHO\WR0LGGOHWRQVVDWLVIDFWLRQ

0XFKRIWKHIROORZLQJPDWHULDOLVWDNHQIURPGDWDFROOHFWHGGXULQJILHOGZRUNLQ&RORPELDEHWZHHQIXQGHGE\DJUDQWIURPWKH/HYHUKXOPH7UXVW

)RUOLWHUDWXUHRQ&RORPELDQIRONPXVLFVHH$EDGLD0RUDOHV%HKDJXH'DYLGVRQ /LVW2FDPSR/SH] %DPEXFRLVJHQHUDOO\SOD\HGZLWKJXLWDUVWLSOHVWUHEOHJXLWDUVDQGEDQGRODVPDQGROLQVDWDPERXULQHLVVRPHWLPHVXVHG/LVWS $EDGLD0RUDOHVS,WLVDGDQFHVRQJLQRUPHWUHLQPRGHUDWHTXLFNWHPSRZLWKDV\QFRSDWHGUK\WKPWKHYRFDOSDUWLQYROYHVDGXHWRIPDOHYRLFHVVLQJLQJLQSDUDOOHOWKLUGV'XULQ



S/LVWS2FDPSR/SH]S%HKDJXHS

6HH 5HVWUHSR'XTXH IRUELRJUDSKLFDOLQIRUPDWLRQRQWKHVHPXVLFLDQV6HH HQWULHVXQGHU WKH DUWLVWVQDPHV LQ 6SRWWVZRRG

6HH8UU\IRUDVLPLODUDUJXPHQWDERXWWKHSUHILJXULQJLQ WRXULVPRIHOHPHQWVRISRVWPRGHUQLW\

$OOFLWHGLQ3HUGRPR(VFREDUSS6HHDOVR$EDGLD0RUDOHVSS$ILH]2FDPSR/SH]S/LVWVD\VWKHKDUPRQLFRUJDQLVDWLRQRIEDPEXFRLV(XURSHDQEXWWKDWWKHGLVMXQFWUHODWLRQVKLS RI PHORG\ DQG DFFRPSDQLPHQWVHHPVWRLQGLFDWH$IULFDQLQIOXHQFHS

6HH=DPXGLR7KLVPDWHULDOZDVRULJLQDOO\SXEOLVKHGLQLQWKH%ROHWLQGHSURJUDPDVGHOD5DGLRGLIXVRUD1DFLRQDOEDVHGRQDQRULJLQDOVSHHFKJLYHQDWWKHILUVWQDWLRQDOFRQJUHVVRIPXVLFLQ&RORPELDLQVHH=DPXGLR

7KHUHDUHVWURQJSDUDOOHOVLQWKHKLVWRU\RI&RVWHILRPXVLFZLWKWKDWRIWKH'RPLQLFDQ5HSXEOLF 3DFLQL 'XDQ\ 'DYLV+DLWL$YHULOO-DPDLFD:LWPHU DQG RWKHU DUHDV RI WKH &DULEEHDQ0DQXHO

,DPFXUUHQWO\ZULWLQJDERRNLQFROODERUDWLRQZLWK &RORPELDQ PXVLFRORJLVW (JEHUWR%HUPLGH] ZKLFKLQFOXGHVPRUHGHWDLORQWKHVHDUWLVWVDQGWKHKLVWRU\RI&RVWHL;RPXVLF

7KH (PLVRUD $WODQWLFR -D]] %DQG IRUH[DPSOHSOD\HG WKHLUILUVWJLJLQ %DUUDQTXLOOD LQZLWKD OLQHXSFRQVLVWLQJRIWURPERQH WKUHH VD[HV WUXPSHWGRXEOHEDVV GUXPNLWDQG SLDQR 6XFKRUFKHVWUDVRIWHQDOVRLQFOXGHGRWKHUSHUFXVVLRQLQVWUXPHQWVVXFKDV VFUDSHUVDQGPDUDFDVZKLFKZHUHQDWLYHWRWKHFRDVWDOUHJLRQDQGFRQJDDQG ERQJR GUXPV GHULYHG IURP&XEDQOLQHXSV

,QWKH%RJRWDZHHNO\6GEDGR-XQHS

&I0LGGOHWRQSZKRWDNHVDGLIIHUHQWOLQHE\DUJXLQJWKDWHDUO\MD]] LQWKH86$FRXOGEHVHHQE\ZKLWHVDVERWKSULPL

WLYHLQVWLQFWXDOO\OLEHUDWLQJDQGPRGHUQQHUYRXVPHFKDQLFDO

7KHUHZHUHVRPHGRXEOHHQWHQGUHVKRZHYHU)RUH[DPSOH1RFRPRFRQHMRE\WKH2UTXHVWD(PLVRUD)XHQWHVZLWK&DUPHQFLWD3HUQHWWRQYRFDOV'LVFRV)XHQWHVWUDQVODWHVDV

,GRQWHDWUDEELWDQGDVLQ(QJOLVKUDEELWFDQPHDQDZRPDQVVH[XDORUJDQV

+H ZDV D ODZ\HUMRXUQDOLVWDQG SROLWLFLDQIURPWKH&DULEEHDQFRDVWDOUHJLRQZKRZURWHD VHULHVRIDUWLFOHVLQ(O7LHPSRDQG 6GEDGRZKLFKZHUHVRPHZKDWZKLPVLFDOGHVFULSWLRQVRIFKDUDFWHUVPXVLFDOVW\OHVDQGHYHQWVIURP/D&RVWDVHHDOVR*LODUG

6HPDQDSS-DQXDU\DOVRUHSURGXFHGLQ6HPDQDSS 0D\

6HPDQD'HFHPEHU7KH KLVWRU\RIYDOOHQDWRLV FRQWHVWHG6HH

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

7KHUHDUHVRPHSDUDOOHOVKHUHZLWKWKHLPSDFWRI-XDQ/XLV*XHUUDRQEDFKDWD3DFLQL

,WLVQRWUHDOO\DFFXUDWHWRFDOOLW9LYHVPXVLFVLQFHKHKDVDZKROHWHDPRISURGXFHUVDQGDUUDQJHUVZKRLQIOXHQFHWKHVRXQGDVPXFKRUPRUHWKDQKHGRHV

5HIHUHQFHV$EDGLD0RUDOHV*XLOOHUPR/DPXLVLFDIRONOGULFDFRORPELDQD%RJRW$&RPSHQGLRJHQHUDOGHOIRONORUHFRORPELDQR%RJRW$

$EX/XJKRG/LOD7KHURPDQFHRIUHVLVWDQFHWUDFLQJWUDQVIRUPDWLRQVRISRZHUWKURXJK%HGRXLQZRPHQ$PHULFDQ(WKQRORJLVWSS

$QGHUVRQ%HQHGLFW,PDJLQHG&RPPXQLWLHV5HIOHFWLRQVRQWKH2ULJLQDQG6SUHDGRI1DWLRQDOLVP/RQGRQ

$IWH]-RUJH&DQFLRQHV\UHFXHUGRV%RJRWD


3HWHU:DGH

$UDWLMRGH0ROLQD&RQVXHOR9DOOHQDWRORJLDRULJHQHV\IXQGDPHQDWRVGHODPDLVLFDYDOOHQDWD%RJRWD$VDG 7DODO *HQHDORJLHVRI5HOLJLRQ'LVFLSOLQHDQG5HDVRQVRI3RZHULQ&KULVWLDQLW\DQG,VODP

%DOWLPRUH$YHULOO*DJH+DLWLDQGDQFHEDQGVFODVVUDFHDQGDXWKHQWLFLW\/DWLQ$PHULFDQ0XVLF

5HYLHZSS6HNUH\ROQRX\HZHUHFUHROHPXVLFDOGLVFRXUVHRQ+DLWLDQLGHQWLWLHVLQ0XVLFDQG%ODFN(WKQLFLW\7KH&DULEEHDQDQG6RXWK$PHULFDHG*HUDUG%HKDJXH1HZ%UXQVZLFN

%HKDJXH*HUDUG3RSXODUPXVLFLQ+DQGERRNRI/DWLQ$PHULFDQ3RSXODU&XOWXUHHGV+DUROG+LQGVDQG&KDUOHV7DWXP:HVWSRUW&RQQ

0XVLFVLQFHFLQ7KH&DPEULGJH+LVWRU\RI/DWLQ$PHULFD9RO/DWLQ$PHULFDVLQFH,GHDV&XOWXUHDQG6RFLHW\HG/HVOLH%HWKHOO&DPEULGJH

%KDEKD+RPL7KH/RFDWLRQRI&XOWXUH/RQGRQ%UXJHV&DUPRQD$QWRQLR1RFLQGHOSRUUR(O7LHPSR)HEUXDU\VHFWLRQS%XVKQHOO'DYLG7KH0DNLQJRI0RGHUQ&RORPELD$1DWLRQLQ6SLWHRI,WVHOI%HUNHOH\'DYLGVRQ+DUU\&'LFFLRQDULRIRONOULFRGH&RORPELDYROV%RJRWD'DYLV0DUWD(OOHQ0XVLFDQGEODFNHWKQLFLW\LQWKH'RPLQLFDQ5HSXEOLFLQ0XVLFDQG%ODFN

(WKQLFLW\7KH&DULEEHDQDQG6RXWK$PHULFDHG*HUDUG%HKDJXH1HZ%UXQVZLFN'XDQ\-RUJH(WKQLFLW\LGHQWLW\DQGPXVLFDQDQWKURSRORJLFDODQDO\VLVRIWKH'RPLQLFDQPHU

HQJXHLQ0XVLFDQG%ODFN(WKQLFLW\7KH&DULEEHDQDQG6RXWK$PHULFDHG*HUDUG%HKDJXH1HZ%UXQVZLFN

'XUDQ*XVWDYR5HFRUGLQJVRI/DWLQ$PHULFDQ6RQJVDQG'DQFHV$Q$QQRWDWHGDQG6HOHFWLYH/LVWRI3RSXODUDQG)RON3RSXODU0XVLFQGHGLWLRQUHYLVHGE\*LOEHUW&KDVH:DVKLQJWRQ

)DJDQ7HGDQG:LOOLDP50RUDQ7KH(QF\FORSHGLF'LVFRJUDSK\RI9LFWRU5HFRUGLQJV:HVWSRUW

)UDQFR-HDQ7KH0RGHUQ&XOWXUHRI/DWLQ$PHULFD6RFLHW\DQGWKH$UWLVW/RQGRQ)ULWK6LPRQ0XVLFDQGLGHQWLW\LQ4XHVWLRQVRI&XOWXUDO,GHQWLW\HG6WXDUW+DOODQG3DXOGX

*D\/RQGRQ*DUFLD0DUTXH]*DEULHO2EUDSHULRGLVWLFD9RO7H[WRVFRVWHILRVHG-DFTXHV*LODUG%RJRWD*HOOQHU(UQHVW1DWLRQVDQG1DWLRQDOLVP2[IRUG(QFRXQWHUVZLWK1DWLRQDOLVP2[IRUG

*LODUG-DFTXHV 6XUJLPLHQWR\UHFXSHUDFLQGH XQD FRQWUDFXOWXUDHQ OD &RORPELD FRQWHPSRUDQHD+XHOODVSS

D&UHVFHQFLRRXGRQ7RED")DXVVHVTXHVWLRQVHWYUDLHVUHSRQVHVVXUOHYDOOHQDWR&DKLHUVGX0RQGH+LVSDQLTXHHW/XVR%UHVLOLHQ&DUDYHOOHSS$OVRSXEOLVKHGDV&UHVFHQFLRR'RQ7RED")DOVRVLQWHUURJDQWHV\YHUGDGHUDVUHVSXHVWDVVREUHHOYDOOHQDWR+XHOODVSS

E9DOOHQDWRFX$OWUDGLFLQQDUUDWLYD"+XHOODVSS/HGHEDWLGHQWLWDLUHGDQVOD&RORPELHGHVDQQHHVHW&DKLHUVGX0RQGH+LVSDQLTXHHW/XVR%UHVLOLHQ&DUDYHOOHSS

*LOUR\3DXO7KHUH$LQWQR%ODFNLQWKH8QLRQ-DFN7KH&XOWXUDO3ROLWLFVRI5DFHDQG1DWLRQ/RQGRQ+DOO6WXDUWDQG-HIIHUVRQ7HGV5HVLVWDQFHWKURXJK5LWXDOV


%DFKDWDIURPWKHPDUJLQVWRWKHPDLQVWUHDP3RSXODU0XVLFSS3DODFLRV0DUFR(VWDGR\FODVHVVRFLDOHVHQ&RORPELD%RJRWD3HUGRPR(VFREDU-RVH,JQDFLR/DKLVWRULDGHODPIVLFDHQ&RORPELDUGHGLWLRQ%RJRWD5HLO\6X]HO$QD 0DFXQDLPDVPXVLFQDWLRQDOLGHQWLW\DQGHWKQRPXVLFRORJLFDOUHVHDUFKLQ

%UD]LOLQ(WKQLFLW\,GHQWLW\DQG0XVLF7KH0XVLFDO&RQVWUXFWLRQRI3ODFHHG0DUWLQ6WRNHV2[IRUG5HVWUHSR'XTXH +HUQDQ0LVLFD SRSXODULQ+LVWRULDGH$QWLRTXLDHG-RUJH2UODQGR0HOR

0HGHOOLQ5HVWUHSR'XTXH+HUQLQ/DVPHMRUHVFDQFLRQHVFRORPELDQDV\VXVDXWRUHV%RJRWD5RZH:LOOLDPDQG6FKHOOLQJ9LYLDQ0HPRU\DQG0RGHUQLW\3RSXODU&XOWXUHLQ/DWLQ$PHULFD

/RQGRQ6HJDO'DQLHODQG+DQGOHU5LFKDUG+RZ(XURSHDQLVQDWLRQDOLVP"6RFLDO$QDO\VLVSS6SRWWVZRRG5LFKDUG.(WKQLF0XVLFRQ5HFRUG$'LVFRJUDSK\RI(WKQLF5HFRUGLQJV3URGXFHGLQWKH

8QLWHG6WDWHVWRYROV8UEDQDDQG&KLFDJR6WRNHV0DUWLQHG(WKQLFLW\LGHQWLW\DQGPXVLFWKHPXVLFDOFRQVWUXFWLRQRISODFH2[IRUG7DXVVLJ0LFKDHO7KH1HUYRXV6\VWHP1HZ