Archive for the 'Published' category

Embassy of Iraq

The sun was shining brightly on the P Street entrance of the Iraqi Embassy today.

We can hope this is an auspicious sign. Hope.

The county’s Embassy, surprisingly easy to miss, is located on P Street, just East of the bustling Dupont Circle. This area of DC has the highest concentration of embassies of foreign governments – North of Iraq’s is what is called “the African Row,” and on the other side of Dupont Circle is a majority of the EU, stretching up Massachusetts Ave on Embassy Row.

Given the prime location of this embassy, and the fact that the US and Iraq must have not had diplomatic relations until only relatively recently (though I don’t know for sure), the history of this building must be worth exploring.

What is striking, as well, is the near complete anonymity of the Iraqi Embassy. There is not wall, no huge gate. Tall trees obscure the plain looking windows on the second floor. The nation’s flag hangs limply on the yard on P Street, and a small plaque hangs on the wall outside, hoping not to be noticed by the outside world. Apparently you don’t go there unless you have a good reason to.

The Capitol Comes to Perham, MN

Not only was I lucky enough to attend the Inaugural ceremonies on the lawn of our Nation’s Capitol last Tuesday, feeling the pulse of the 21 canon salute vibrate through my core, I was also honored to have my thoughts on the event published in the Perham Enterprise Bulletin, the weekly newspaper of Perham, Minnesota and surrounding areas. “The Whole World Is Celebrating Together” was published in the January 22nd edition of the paper.

Coops Going Viral!!

This article was originally published in the Houston Chronicle

What caused our current economic crisis? It was greed, deregulation, predatory lending, so popular thought goes.

 

Mortgage lenders and Wall Street are guilty of many of these accusations. But there’s one major flaw in the logic of this finger-pointing – these are symptoms, not causes, of our financial system. In other words, it’s the nature of the beast.

 

Investor-owned businesses, pressured by investors’ beckoning for higher returns, place the highest value on profit. An unsatiated pool of investors can flee, destroying a company’s primary source of capital and bankrupting the business. For business leaders, this is clearly not an option.

 

Investor-owned businesses can also find that their employees’ or consumers’ interests are at odds with those of the investors. That executives often hold large amounts of company stock creates an even deeper conflict of interest. Are higher-ups making the right decisions for the company, or are they just making the decisions that boost their own portfolios? Unfortunately, as the subprime mortgage crisis revealed, it’s often the latter of the two.

 

This high-risk, profit-first model has, in many ways, failed. While it made our country affluent, it also left us vulnerable.

 

People want to know where we go from here, what sort of business model could have averted the crisis. The answer is simple, and decidedly American.

 

We need to invest in business cooperatives.

 

People gravitate toward comfort and security in times of crises. That’s exactly why business cooperatives are so appealing right now.

 

Structurally, cooperatives are distinct from investor-owned businesses. Those who use a co-op’s services actually own an equal share of the business. There are no majority shareholders or single owners, and fluctuations on Wall Street exert only an indirect influence on business.

 

Co-ops include Fortune-500 businesses such as Land O’Lakes and Sunkist, as well as the Associated Press, and are some of the most powerful food suppliers in the country. According to a vast, USDA-funded study at the University of Wisconsin, co-ops hold over $1 trillion in assets, and have over 125 million members.

 

Following The Great Depression, credit unions – another type of cooperatively owned business – grew exponentially. Experts, including Ivy League finance professors, agree that credit unions will most likely see a similar surge in the near future.

 

Credit unions have remained stable in the current wave of bank failures. George Hofheimer, Chief Research Officer of the Filene Institute, a non-profit think tank that studies credit unions, said that they’ll attract members because they haven’t had to tighten their lending standards. Credit is flowing as freely today as it was a year ago.

 

That’s because credit unions, like other cooperatives, don’t answer to investors. Consequently, they’ve made less risky moves, like packaging subprime mortgages into stock and selling them on the market. Because every member is an equal owner, there’s no incentive for anyone – President, CFO, or CEO – to try to manipulate stock price. No single person stands to gain more than another. The excesses of AIG simply couldn’t have happened in a co-op.

 

This makes for business with a face. Because revenues stay local, credit unions’ gains represent gains to the community. And as owners, each member has a say in the business’ governance. This creates a culture of transparency, a far cry from the culture of many investor-owned corporations.

 

These efficiencies manifest in real, tangible benefits to consumers. Credit unions offer better interest rates on deposits, and lower interest rates on loans. The average interest on a 48-month car loan at a credit union, for example, is 1.4% lower than at a bank.

 

What draws members to credit unions – strength, good deals, self-reliance, community focus – also draws people to other types of business cooperatives. Food co-ops, housing co-ops, purchasing co-ops (buyers that come together to leverage economies of scale) – all have blossomed in recent years, bringing services to people who either couldn’t afford them or were geographically marginalized.

 

There’s no such thing as an invulnerable business model, and certainly co-ops feel the stress of a weakened economy. But as The Great Depression showed, business cooperatives can help stabilize an economy in turmoil.

 

By working cooperatively, Americans will regain the trust in each other, and in the economy, that the recent weeks has been so severely damaged.

 

Paul Hazen is the President and CEO of National Cooperative Business Association in Washington, D.C. E-mail him at info@ncba.coop, or visit NCBA on the web at www.ncba.coop.

 

Thirsts and Firsts

First time visiting the locally legendary Lauriol Plaza, I’m convinced the most enjoyable Mexican food experience available. Indulging in the sudden onset margharitta cravings that I have been experiencing.

Just bought my first ticket to a rock and roll show here in DC. Yes, the Toadies, long since gone their separate ways, have brought their brilliance together once again and will be gracing the BlackCat club in DC. By far one of my favorite bands, ever.

I signed up for a Bahasa Indonesia class this summer at the Indonesian Embassy. I bike by the wonderful old brick building on Mass Ave anyway…

David Hwang to be honored at Theater Mu Gal

David Hwang to be honored at Theater Mu Gal

A glimpse of China’s changing culture

A glimpse of China’s changing culture

Sri Lankan Ambassador visits Minnesota

Sri Lankan Ambassador visits Minnesota

A little water, a little sun, and watch it bloom

A little water, a little sun, and watch it bloom