View of Party Switching as a Media Phenomenon in the Election Campaign

Political Preferences

11/2015

Editors:

Agnieszka Turska-Kawa

Waldemar Wojtasik

Katowice 2015

6FLHQWL¿F&RXQFLO SURIGUKDE5RPDQ%lFNHU1LFRODXV&RSHUQLFXV8QLYHUVLW\3RODQGSURIGUKDE7DGHXV] *RGOHZVNL.D]LPLHU]:LHONL8QLYHUVLW\3RODQGSURIGUKDE,ZRQD-DNXERZVND %UDQLFND8QLYHUVLW\RI:DUVDZ3RODQGSURIGUKDE6ODYRPLU0DJiO8QLYHUVLW\RI 6W&\ULODQG0HWKRGLXV6ORYDNLDSURIGUKDE-R]HI0DW~ã8QLYHUVLW\RI6W&\ULO DQG0HWKRGLXV6ORYDNLDSURIGUKDE'XVDQ3DYOX+LJKHU6FKRRORI+RVSLWDOLW\ 0DQDJHPHQW&]HFK5HSXEOLFSURIGUKDE/LERU3DYHUD+LJKHU6FKRRORI+RVSLWDOLW\ 0DQDJHPHQW&]HFK5HSXEOLFGUKDE'DQD3HWUDQRYi8QLYHUVLW\RI6W&\ULODQG 0HWKRGLXV6ORYDNLDSURIGUKDE2OJD3URNRSHQNR6XPVNL1DWLRQDO8QLYHUVLW\ 8NUDLQHSURIGUKDE7HUHVD6DVLĔVND.ODV-DJLHOORQLDQ8QLYHUVLW\3RODQGSURIGUKDE -HU]\6LHOVNL8QLYHUVLW\RI6]F]HFLQ3RODQGGU0DUFMDQQD$XJXVW\Q8QLYHUVLW\RI+XOO (QJODQGSURI-DQD*DOHUD0DW~ãRYi8QLYHUVLW\RI6W&\ULODQG0HWKRGLXV6ORYDNLD (GLWRULDO%RDUG GUKDE$JQLHV]ND7XUVND.DZDFKLHIHGLWRU PJU0DFLHM0DUPRODMRXUQDOVHFUHWDU\ GUKDE5REHUW$OEHUVNLWKHPHHGLWRUV\VWHPVDQGYRWLQJEHKDYLRU GUKDE'DQXWD3OHFNDSURI80.WKHPHHGLWRUSROLWLFDOLGHQWL¿FDWLRQ GUKDEàXNDV]7RPF]DNWKHPHHGLWRUSROLWLFDOSDUWLHV GUKDE=ELJQLHZ:LGHUDSURI8(WKHPHHGLWRUSROLWLFDOPDUNHWLQJ GUKDE:DOGHPDU:RMWDVLNWKHPHHGLWRUSDUW\V\VWHPV PJU3U]HP\VáDZ*U]RQNDVWDWLVWLFDOHGLWRU 5HYLHZHUVGUKDE$JQLHV]ND.DVLĔVND0HWU\NDSURI8-.Z.LHOFDFK7KH-DQ.RFKDQRZVNL 8QLYHUVLW\LQ.LHOFH3RODQGGUKDE0DFLHM'U]RQHN6]F]HFLQ8QLYHUVLW\3RODQGGUKDE -DFHN6XU]\Q8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQGGUKDE+DQD3UDYGRYi8QLYHUVLW\ RI6W&\ULODQG0HWKRGLXV6ORYDNLDGUKDEďXGPLODýiE\RYi8QLYHUVLW\RI6W&\ULODQG 0HWKRGLXV6ORYDNLDGU-XOLiQD0LQiULNRYi8QLYHUVLW\RI6W&\ULODQG0HWKRGLXV6ORYDNLD /DQJXDJHYHUL¿FDWLRQ$OHNVDQGUD-ĊGU]HMHF &RYHUSURMHFW-DURVáDZ:LFKXUD 2ULJLQDOYHUVLRQRIMRXUQDOSDSHU ‹,QVWLWXWHRI3ROLWLFDO6FLHQFHDQG-RXUQDOLVPDWWKH8QLYHUVLW\RI6LOHVLDDQGWKH&HQWHUIRU ,QQRYDWLRQ7HFKQRORJ\7UDQVIHUDQG'HYHORSPHQW)RXQGDWLRQRIWKH8QLYHUVLW\RI6LOHVLD Katowice 2015 -RXUQDOLVSXEOLVKHGE\WKH,QVWLWXWHRI3ROLWLFDO6FLHQFHDQG-RXUQDOLVPDWWKH8QLYHUVLW\ RI6LOHVLDDQGWKH&HQWHUIRU,QQRYDWLRQ7HFKQRORJ\7UDQVIHUDQG'HYHORSPHQW)RXQGDWLRQ RIWKH8QLYHUVLW\RI6LOHVLD 3DWURQDJHIRUWKHSURMHFWLVH[HUFLVHGE\(OHFWRUDO5HVHDUFK&RPPLWWHH3ROLVK3ROLWLFDO 6FLHQFH$VVRFLDWLRQ ISSN: 2083-327X 'HVNWRS3XEOLVKLQJSUHSUHVVDQGSULQWLQJ5(0$5ZZZUHPDUVRVQRZLHFSO HPDLOZ\GDZQLFWZR#UHPDUVRVQRZLHFSO $OOWH[WVDUHOLFHQVHGXQGHUWKH&UHDWLYH&RPPRQV%<&&%<

àXNDV]7RPF]DN 6]F]HFLQ8QLYHUVLW\3RODQG /HDGHUVRI3ROLVK3ROLWLFDO3DUWLHVDQG7KHLU6FRSHRI3RZHU LQ3DUW\6WUXFWXUHV ... 7 0DULXV].ROF]\ĔVNL 8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG Ä6XEVWLWXWH&DQGLGDWH´LQ3ROLVK&DPSDLJQ3UDFWLFH ... 19 %HDWD6áRERG]LDQ8QLYHUVLW\RI*GDQVN3RODQG 3ROLWLFDO3DUWLHVDQG7KHLU5ROHLQ'HWHUPLQLQJD7HUULWRULDO'LYLVLRQ RI3RODQG ... 35 Waldemar Wojtasik 8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG

3ROLWLFDO3DUWLHV¶(OHFWRUDO6WUDWHJLHVLQWKH&RQWH[WRI3ROLWLFDO8QFHUWDLQW\ ... 51 Agnieszka Turska-Kawa 8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG

7KH5ROHRI7UXVWLQ3ROLWLFDO&RUUXSWLRQ2XWOLQHRIWKH6XEMHFW ... 61 Agata Olszanecka-Marmola 8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG

3URV\VWHPLF9RWHUV9HUVXV$QWLV\VWHPLF2QHV(PRWLRQDO$WWLWXGH WR&DQGLGDWHVDQGWKH,QÀXHQFHRI793ROLWLFDO$GYHUWLVLQJ LQWKH3UHVLGHQWLDO(OHFWLRQLQ3RODQG ... 77 6]\PRQ.RáRG]LHM8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG 3DUW\6ZLWFKLQJDVD0HGLD3KHQRPHQRQLQWKH(OHFWLRQ&DPSDLJQ ... 93 5REHUW5DGHN 8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG 3DUW\%HKDYLRUDQGWKH)RUPDWLRQRI0LQRULW\*RYHUQPHQWV± ([SHULHQFHVLQ'HQPDUN ... 107 0DáJRU]DWD0\ĞOLZLHF8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH3RODQG 6SDLQCV3DUW\6\VWHPDW7LPHVRIWKH(FRQRPLFDO&ULVLVDIWHU ... 125 Anna Sroka :DUVDZ8QLYHUVLW\3RODQG

7KH6SDQLVK3DUW\6\VWHPDQGWKH,VVXHRI$VVLJQLQJ5HVSRQVLELOLW\ ... 163

'RPLQLN6]F]HSDĔVNL (8QLYHUVLW\RI5]HV]RZ3RODQG 6XEFDUSDWKLDQ9RLYRGVKLSRQWKH(OHFWRUDO0DSRI3RODQG ...173 Kinga Sulejman8QLYHUVLW\RI5]HV]RZ3RODQG (OHFWLRQWR5HJLRQDO$VVHPEOLHV&RPSHWLWLRQLQWKH/LJKW3DUW\(OHFWLRQ &RPSDUDWLYH$QDO\VLV ... 5HYLHZ

Knopek Jacek: 6WRVXQNLSROVNR]DFKRGQLRDIU\NDĔVNLHHQJ5HODWLRQV

EHWZHHQ3RODQGDQG:HVW$IULFD$GDP0DUV]DáHN3XEOLVKLQJ+RXVH7RUXQ

SS

5HYLHZHU$QQD5DWNH0DMHZVND ... 217 6XPPDULHV ... 223

Ä3ROLWLFDO3UHIHUHQFHV´1R '2,P¿JVKDUH

Abstract



7KHDUWLFOHSUHVHQWVFKDQJHVWKDWWDNHSODFHLQPDVVPHGLDGXULQJDQGDIWHU WKHSDUW\VZLWFKLQJ7KHPDLQUHDVRQZK\SROLWLFLDQVDUHFKDQJLQJÄWKHLUFRORUV´ LVWKDWWKH\ZDQWWREHFRPHWKHFHOHEULWLHV7KLVZRUNLVDQDWWHPSWRIUHVHDUFK DERXWSRVVLEOHPRWLYDWLRQRIWKRVH¿JXUHV,WLVDOVRLPSRUWDQWWRFRQVLGHULIH[LVW FKDUDFWHULVWLFIHDWXUHVWKDWDUHDVVLJQHGWRLGHQWL¿HGSROLWLFDOW\SHV"

Key words:

SDUW\VZLWFKLQJPHGLDWL]DWLRQW\SHVRISROLWLFLDQVSROLWLFDOWUDQVIHU3RODQG

Introduction

7KHFKDQJHRISDUW\D൶OLDWLRQDVDSKHQRPHQRQLQ3ROLVKSDUOLDPHQ WDULVPKDVH[LVWHGIRUDORQJWLPH1>7XQNLV@+RZHYHUSDUW\VZLWFKLQJ KDVQHYHUKDGQRWRULHW\OLNHWKLVEHIRUH7KHPDLQFKDQJHZKLFKLVEDVHGRQ LQFUHDVHRIPDVVPHGLD¶VLQWHUHVWLQSXEOLFOLIHFDXVHGWKHUHFRJQL]DEOHSROL WLFLDQVZKRKDGPDQ\WLPHVFKDQJHGWKHLUSDUW\D൶OLDWLRQWREHFRPHFHOH EULWLHV7KHSKHQRPHQRQRIPHGLDWL]DWLRQDQGSURIHVVLRQDOL]DWLRQRISROLWLFDO VXEMHFWV¶DFWLYLWLHVUHVXOWHGLQDQLQFUHDVHLQVRFLDOGHPDQGIRUSVHXGRHYHQWV  6HHWDEOHV

3$57<6:,7&+,1*$6$0(',$3+(120(121

,17+((/(&7,21&$03$,*1

6]\PRQ.RãRG]LHM

^njLJŵŽŶ<ŽųŽĚnjŝĞũ FUHDWHGPDLQO\E\³VZLQGOHUV´SDUW\PHPEHUVGHDOLQJZLWKPHGLD,WKDSSHQV WKDWSROLWLFLDQVPRYHWRWKHIDFWLRQVZKLFKKDGEHFRPHWKHREMHFWRIWKHLUFULWL FLVPLQWKHSDVWWKHUHIRUHWKHVHSROLWLFLDQVSXWWKHPVHOYHVLQDQDZNZDUGSRVL WLRQDQGKDYHWRSUHVHQWWKHDSSURSULDWHDUJXPHQWVIRUSXEOLFRSLQLRQWRMXVWLI\ WKHLUEHKDYLRU 7KHSXUSRVHRIWKLVDQDO\VLVLVWRLQGLFDWHWKHSURFHVVHVWKDWHQFRXUDJH FKDQJLQJSDUW\D൶OLDWLRQLQGLFDWLQJW\SHVRISROLWLFLDQVZLWKVRPHVSHFL¿F PHGLDIHDWXUHVZKLFKLQDZD\SUHGHVWLQHWKHPWRSDUW\VZLWFKLQJLQWKHIXWXUH ,WDOVRVHHPVQHFHVVDU\WRLQGLFDWHPDLQPRWLYDWLRQVDQGFRQGLWLRQVRIWKHPRVW IDPRXVSDUW\VZLWFKLQJLQ3RODQG

Party switching and “changing the colors”

3DUW\VZLWFKLQJPHDQWDVFKDQJLQJRISDUW\D൶OLDWLRQLQDSDUOLDPHQ WDU\FDELQHWV\VWHPFKDUDFWHULVWLFIRUWKHHOHFWRUDOV\VWHPLQ3RODQGFDQEH FRQVLGHUHGLQWZRZD\V$IWHUHOHFWLRQVZKHQSROLWLFDOIRUFHV¿QGRXWDERXWDQ DFWXDOYRWHUV¶VXSSRUWUHÀHFWHGLQWKHSDUOLDPHQWDU\VHDWVRQHTXHVWLRQLVLQWH UHVWLQJIRUSDUW\OHDGHUV³:KRLVDEOHWRJRYHUQLQWKLVSDUOLDPHQWDU\WHUP"´ ,Q3ROLVKUHDOLW\RIPXOWLPHPEHUFRQVWLWXHQFLHVLQWKHSUHIHUHQWLDODQGSURSRU WLRQDOIRUPXODV\VWHPDVZHOODVDGRPLQDQWUROHRIWKHSULPHPLQLVWHUIRUPD WLRQRIJRYHUQPHQWUHTXLUHVDFRDOLWLRQRISROLWLFDOSDUWLHVZKHUHDVWKHVDPH PDMRULW\LQSDUOLDPHQWXVXDOO\PHDQVDVOLJKWDGYDQWDJHRIDIHZRUVHYHUDO YRWHV7KHVPDOOHUWKHVWDELOLW\RIDSDUWLFXODUFRDOLWLRQWKHJUHDWHUPRWLYD WLRQRISROLWLFDOSDUWLHVXQGHUVWRRGDVRUJDQL]DWLRQVZKLFKSXUSRVHLVJDLQLQJ SRZHUDVZHOODVWKH0HPEHURI3DUOLDPHQWKLPVHOIZKRGLGQ¶WEHORQJWRLWV UDQNVEHIRUH03RIRSSRVLWLRQWRFRQFOXGH³DSROLWLFDOGHDO´7KHQHJRWLDWLRQ SURFHVVEHWZHHQWKHUHSUHVHQWDWLYHRIDSDUW\DQG03FRQVLVWLQJRIDPXWXDO EHQH¿WV¶H[FKDQJHEHJLQV:KLOHWKHSDUW\¶VSRLQWRIYLHZVXEPLWWLQJDSURPLVH RUDVXEVWDQWLDOSURSRVDOVHHPVWREHXQGHUVWDQGDEOHWKHDWWLWXGHRIDPHPEHU RISDUOLDPHQWZKRZDQWVWRFKDQJHWKHSROLWLFDODIILOLDWLRQWRJDLQSHUVRQDO SURILWVVHHPVGRXEO\PRUDOO\UHSUHKHQVLEOH)LUVWO\DFFHSWLQJWKHSURSRVDO SODFHVLQYROYHGSHUVRQLQDQDZNZDUGVLWXDWLRQLQUHODWLRQWRKLVRUKHUHOHF WRUDWHZKLFKKDVMXVWFKRVHQWKHFDQGLGDWHIRUWKHR൶FHIURPDGL൵HUHQWSROL WLFDOSDUW\WKDQWKHRQHWRZKLFKWKHHOHFWHGSHUVRQKDVMXVWSDVVHGWRHQVXUH LWVVWDEOHPDMRULW\6HFRQGO\LWLVKDUGIRUVXFKSROLWLFLDQVWRSURYHLQPHGLD WKDWWKH\ZHUHJXLGHGE\WKHEHVWLQWHUHVWVRIWKHFRXQWU\DWWKHFRVWRIWKHLU SUHYLRXVSROLWLFDOYLHZV)RUWKHQHHGRIWKLVDQDO\VLVOHW¶VFDOOWKDWEHKDYLRU³D SROLWLFDOFKDQJHRIFRORUV´7KHUHIRUHZHQHHGWRGLVWLQJXLVKLWIURPDVLPLODU EXWGL൵HUHQWSKHQRPHQRQZKLFKLVWKHVXEMHFWRIWKLVVWXG\SDUW\VZLWFKLQJ 7KLVSKHQRPHQRQZLOOEHFKDUDFWHUL]HGE\VHDUFKLQJSDUW\D൶OLDWLRQRWKHUWKDQ

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ WKDWZKLFKIRUDORQJHUSHULRGZDVVXEMHFWWRWKHSDUWLFLSDWLRQRIWKHFDQGLGDWH LQIDYRURIDQRWKHUIRUPDWLRQEHIRUHWKHHOHFWLRQVWRWKHFKDPEHURISDUOLD PHQW7KHUHIRUHLWLVYLWDOIRUWKHFDQGLGDWHWRFUHDWHDQHZFKDQFHRIUHFHLYLQJ DVHDWRUREWDLQLQJWKHSURPLVHRIDVWDUWIURPDKLJKSODFHRQWKHHOHFWRUDOOLVW LQH[FKDQJHIRUDWWUDFWLQJWKHFDQGLGDWH¶VIROORZHUVWRWKLVJURXS)URPDPRUDO SRLQWRIYLHZVXFKSUDFWLFHVHHPVOHVVEXUGHQVRPHIRUWKHFDQGLGDWHIRUZKRP LQFDVHRIUHFHLYLQJWKHPDQGDWHLWZLOOEHPXFKHDVLHUWRMXVWLI\KLPRUKHUVHOI LQIURQWRISXEOLFRSLQLRQWKDQLQWKHFDVHRI³FKDQJLQJWKHFRORUV´

Mediatization of politics

$FRUUHFWXQGHUVWDQGLQJRIWKHSROLWLFDOSKHQRPHQRQRISDUW\VZLW FKLQJDQGLWVFRQGLWLRQVUHTXLUHWRORRNDWWKHHQYLURQPHQWLQZKLFKLWWDNHV SODFH0HGLDWL]DWLRQ2PHDQVGRPLQDWLRQRIWKHDUHDRILPDJHRYHUWKHDUHD RISURJUDP7KHNH\REMHFWLYHRISROLWLFLDQVXVLQJPHWKRGVFKDUDFWHULVWLF IRUSROLWLFDOPDUNHWLQJDQG35LVVNLOOIXOFUHDWLRQRID³SVHXGRHYHQWV´RUSROL WLFDOHYHQWVZKLFKDUHVHHPLQJO\LPSRUWDQWEXWPDLQO\DWWUDFWLYHIRUPHGLD $VDUHVXOWSROLWLFLDQVDLPWRH൵HFWLYHO\PDQDJHPHGLDDQGWKHLUDJHQGDIRU WKHGD\LQRUGHUWR³JHW´WKHLUPHVVDJH³WKURXJK´WRSUHFLVHO\VHOHFWHGJURXSV RIDXGLHQFH7KHSKHQRPHQRQDGGLWLRQDOO\UHLQIRUFHVWKHSURJUHVVLYHEXWGL൵H UHQWO\LQWHUSUHWHGSURFHVVRI$PHULFDQL]DWLRQRIHOHFWLRQFDPSDLJQV'H¿QLQJ DVGL൵XVLRQRIPRGHOVGRPLQDWLQJLQWKH8QLWHG6WDWHVFRQVLVWVRIWKHLUJUDGXDO DGRSWLRQDQGPRGL¿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.

^njLJŵŽŶ<ŽųŽĚnjŝĞũ

Political parties – change of the organization model

7KHUHVKRXOGEHQRUHDVRQWRZRQGHUWKDWSDUW\VZLWFKLQJDSSHDUVLQWKH VLWXDWLRQLQZKLFKWKHPDLQSROLWLFDOSDUWLHVLQ3RODQGFXUUHQWO\DUH)URPWKHLU SRLQWRIYLHZDVSHFWDFXODUWUDQVLWLRQHYHQRQHRIH[LVWLQJSROLWLFDOHQHP\ SDUW\VZLWFKLQJIURP3L6WRWKH32DQGYLFHYHUVDWR³WKHLURZQ´FDPSFDQ RQO\EULQJSROLWLFDODGYDQWDJH+RZHYHUWKLVPHFKDQLVPGRHVQRWVHHPWRZRUN HQWLUHO\LQVXFKDVLPSOHZD\$QRSSRVLWHWKHRU\VKRXOGUDWKHUEHSURSRVHG± ³EX\LQJ´WKHHQHP\FDPSLVPRUHKDUPIXOWRWKHSDUW\IURPZKLFKWKHSROLWL FLDQFDPHWKDQEULQJVSRSXODULW\WRSDUW\ZKLFKKHPRYHGLQWR $WWKLVSRLQWLWLVZRUWKWRGUDZDWWHQWLRQWRVHYHUDOLVVXHV)LUVWO\WKHUHLV DVWURQJEHOLHIRISDUW\OHDGHUVWKDWDZHOOSXEOLFL]HGSDUW\VZLWFKLQJDSDUWIURP WKHSROLWLFLDQZLOOVRPHKRZDXWRPDWLFDOO\LQWHUFHSWWKHSROLWLFLDQ¶VVXSSRUWHUV ZKRYRWHGIRUKLP3DUW\OHDGHUVVXVSHFWWKDWWKHSHRSOHZLOOVWLOOVXSSRUWKLP HYHQXQGHUDGL൵HUHQWSDUW\EDQQHU6HFRQGO\WUDQVIHUSROLF\FRQGXFWHGGXULQJ DQHOHFWLRQFDPSDLJQKHDYLO\LPSRVHVWKHUHIRUPXODWLRQRIWKHWDUJHWHOHFWRUDWH DQGLGHRORJ\RISDUW\$V0DUHN6HPSDFKQRWHVLPDJHFUHDWLRQRI3ROLVKSROL WLFDOSDUWLHVFRQVLVWVRIVHOHFWLYHFKRRVLQJRISROLWLFDOPDUNHWLQJWRROVZKLFK WDNHVRQWKHSDUWLVDQFKDUDFWHU>6HPSDFK@'XULQJWKHSRVWPRGHUQL]DWLRQ >1RUULV@FDPSDLJQVLQZKLFKWKHGRPLQDQWPHVVDJHLVRIWHQEDVHG RQFRPPXQLFDWLQJWKURXJKWKHPHGLDWKDWWKLQOLQHZKLFKKDGEHHQWKHUHEHWZHHQ WKHLPDJHDQGLGHQWLW\RIDSROLWLFDOSDUW\DVDQRUJDQL]DWLRQ±KDVEHHQEOXUULQJ $V,SRLQWHGRXWHOVHZKHUH>.RáRG]LHM@WKHLPDJHLVGHVFULEHGE\GL൵HUHQW DSSURDFKHVFRQFHSWXDO³GLPHQVLRQDO´3JHQHUDOFKDUDFWHULVWLFVFRPSRQHQWV5 RUW\SHV6,QWXUQWKHLGHQWLW\RIDQRUJDQL]DWLRQEHVLGHVWKHLPDJHFRQVLVWVRI

 0RVW IUHTXHQWO\ FLWHG ZRUN LQ WKH DUHD RI SROLWLFDO SV\FKRORJ\ DQG SROLWLFDO VFLHQFH LV 'DQ1LPPRDQG5REHUW6DYDJH7KHDXWKRUVGUDZDWWHQWLRQWRWKHGLPHQVLRQVRISROLWLFDO LPDJHFRJQLWLYHHPRWLRQDODQGFRQDWLYH>1LPPR6DYDJH@  $FRPSUHKHQVLYHGH¿QLWLRQRIWKHLPDJHHFRQRPLFDQGSV\FKRORJLFDOLQGLFDWHVWKHDVVLPLODWLRQ WRWKHEUDQGSURGXFWFRQVWLWXWHVFRPSURPLVHEHWZHHQDFXUUHQWUHDOLW\DQGLPDJLQHGIXWXUHLW VKRXOGSURPRWHWKHSURGXFWDQGLQVSLUHWKHFRQ¿GHQFHRIFRQVXPHUV>&LFKRV]@ 5 3ROLVKSROLWLFDOVFLHQFHOLWHUDWXUHLQGLFDWHVWKDWWKHPRVWLPSRUWDQWFRPSRQHQWLQVKDSLQJWKH LPDJHLVWKHFRUHZKLFKLVPDWFKHGEDVHGRQWKHFXUUHQWSROLWLFDODQGVRFLDOGHPDQGZKLOH OHVVHVVHQWLDOSHULSKHUDOIHDWXUHVFUHDWHDUHDOLPDJHRISROLWLFLDQ>&ZDOLQD)DONRZVNL @+RZHYHUWKHLVVXHLVPRVWZLGHO\GLVFXVVHGE\SV\FKRORJLVWVIURPWKHSHUVSHFWLYH RIWKHLPDJHFRPSRQHQWVWKH\LQGLFDWHSK\VLFDODWWUDFWLYHQHVVDELOLW\WRDURXVHV\PSDWK\ FRPSHWHQFH VWUHQXRXV H൵RUW YLUWXH >/HDU\  @ $V ZHOO DV JHRSROLWLFDO LPSODQWDWLRQHVWDEOLVKLQJWKHYDOXHRIDSDUWLFXODUVRFLDOJURXSHGXFDWLRQDQGSURIHVVLRQ UDFLDOUHOLJLRXVD൶OLDWLRQV¿QDQFLDOVWDWXVDQGFKDULVPDDVWKHDELOLW\RIDQDERYHDYHUDJH LQÀXHQFHRQHQYLURQPHQW>3LHWUDĞ@

 3ROLWLFDODQGSHUVRQDOIHDWXUHVDUHDVVLJQHGWRW\SHVRISROLWLFDOLPDJHV7KHPDLQVWUDWHJLHV RIDFWLRQDUHSRLQWHGRXW7KHPDLQW\SHVDUHH[SHUWIDWKHUORYHUKHURDQRUGLQDU\PDQ

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ RWKHUFRPSRQHQWVZKLFKVWD\LQWKHVKDGRZVWKHSKLORVRSK\RIWKHRUJDQL]DWLRQ LWVZD\RIFRPPXQLFDWLQJZLWKWKHHQYLURQPHQWRUYLVXDOLGHQWL¿FDWLRQ,WLVDOVR QRWHGWKDWSDUWLHVURRWHGLQWKHV\VWHPZKLFKKDYHEHHQGRPLQDWLQJWKHSROL WLFDOVFHQHIRUDIHZ\HDUVEORFNSDUWLHVWKHLURQO\YDULDEOHLVWKHLPDJHDORQH ZKLFKLVIRUPHGGHSHQGLQJRQWKHHQYLURQPHQW>,OFLyZ@7KHVSHFWDFXODU SDUW\VZLWFKLQJDVLWVHHPV³OD\´RQWKHERUGHURIDSROLWLFDOSDUW\LGHQWLW\DQGLWV LPDJHFRQWULEXWLQJVLJQL¿FDQWO\WREOXUWKHERUGHURUDWOHDVWPRYHLWWRZDUGVWKH $PHULFDQPRGHORI³SDUWLHVVWULSSHGR൵RIWKHLULGHRORJ\´,WLVFHUWDLQO\DPDQL IHVWDWLRQRIWKHFDPSDLJQ¶V$PHULFDQL]DWLRQZKLFKLVGLUHFWHGWRZDUGVDSROLWLFDO VKRZDQGFRQFHQWUDWHDWWHQWLRQRIPHGLDDQGWKHLUDXGLHQFH,WLVZRUWKPHQWLRQLQJ WKDWVXFKSURFHHGLQJZLOOFRQVWLWXWHLQDVHQVHDVLGHH൵HFWRIWKHSROLWLFDOSDUWLHV¶ LQDELOLW\WRGL൵HUHQWLDWHWKHPVHOYHVIURPWKHFRPSHWLWLRQRQWKHPDUNHW,WLVHDVLHU WRFUHDWHWKHLPDJHRIDSDUW\WKDWLVRSHQWRYDULRXVFRPPXQLWLHVWKDWLVUHDG\WR ZHOFRPHHYHQHQHPLHVDQGWKXVWRGLVFUHGLWWKHRSSRVLWLRQLQSULQFLSOHWKDW³HYHQ WKH\FKDQJHGWKHLUPLQG´UDWKHUWKDQFUHDWHQHZLGHDVSROLWLFDODJHQGDVRUSKLOR VRSK\RILWVH[LVWHQFH)HDWXUHVZKLFKZHUHDVVLJQHGWRWKH$PHULFDQ7TXLWHZHOO GHVFULEHWKHGLUHFWLRQRIFKDQJHDQGWDUJHWIXQFWLRQLQJRI3ROLVKEORFNSDUWLHV  IRFXVLQJRQDZLGHUUDQJHRIYRWHUV

 FRQWLQXRXV FRQGXFWLQJ RI WKH HOHFWLRQ FDPSDLJQ DQG LQYROYLQJ WKH PD[LPXPQXPEHURIYROXQWHHUVLQWKHDFWLYLWLHVRIVWD൵V

 LQWHQVL¿HG HQIRUFLQJ LPDJLQJ DFWLYLWLHV DW WKH H[SHQVH RI SURJUDP ³ODEHOOLQJ´  UHVLJQDWLRQIURPLGHRORJLFDOSRVWXODWHVRIRUJDQL]DWLRQ 7KHPRGHUQSROLWLFDORUJDQL]DWLRQVLQ3RODQGZKLFKLQHDFKHOHF WLRQHQMR\WKHJURZLQJSRSXODULW\RIWKHYRWHUVZKLOHUHGXFLQJWKHGLVWDQFH EHWZHHQWKHPDUHIRUFHGWRDGHWDLOHGUHVHDUFKRIWKHHOHFWRUDOPDUNHW_,QWKLV SHUVSHFWLYHWKHSDUW\VZLWFKLQJRISHRSOHIURPRXWVLGHRIWKHLURZQJURXS LQWKHRSLQLRQRIGHFLVLRQPDNHUVVKRXOGHQFRXUDJHDQGDWWUDFWWKHHOHFWRUDWH ZLWKVSHFL¿FVRFLRLGHRORJLFDODQGGHPRJUDSKLFFRQGLWLRQV7KHSURFHVVRI ³SDUW\VZLWFKLQJ´¿WVLQWRWKHJHQHUDOWUHQGRIGULIWLQJDZD\IURPDSROLF\LQ WKHWUDGLWLRQDOVHQVHWRZDUGVWKHHUDRISRVWSROLF\9_.  $FDWFKDOOW\SHSDUW\PRGHOZDVGHVFULEHGE\2WWR.LUFKKHLPHULQWKHVRIWKHWK FHQWXU\  7KH\VRFDOOHG6736HJPHQWDWLRQ7DUJHWLQJ3RVLWLRQLQJLVWRHQDEOHDVIROORZV  8QGHUVWDQGLQJ RI WKH SROLWLFDO PDUNHW WKH EX\HUV¶ QHHGV SUHIHUHQFHV DQG HOHFWRUDO EHKDYLRU'H¿QHWKHWDUJHWFULWLFDODUHDVIRUSDUWLFXODUHOHFWRUDWH$൵HFWWKHPLQGVRI YRWHUVDQGFUHDWHDÄFRPSHWLWLYHDGYDQWDJH´WKDWZLOOHQDEOHGLVWLQJXLVKLQJLQDGHFLVLYH PDQQHUIURPFRPSHWLWRUVDQGFUHDWHDGGHGYDOXHRIVXEMHFWRQSROLWLFDOPDUNHW>.ROF]\ĔVNL &LFKRV]@

 7KHJDSEHWZHHQWUDGLWLRQDODQGFRQWHPSRUDU\SROLF\LVSUHVHQWHGEHVWE\DGLVSXWHEHWZHHQ (U\N 0LVWHZLF] DQG 0LFKDá .DUQRZVNL 0.  )URP WKH FRQVWLWXWLRQ WR WKH HQWLUH

^njLJŵŽŶ<ŽųŽĚnjŝĞũ

The famous party switching

,QP\ZRUN,ZLOOGHOLQHDWHWKHPRVWLPSRUWDQWSDUW\VZLWFKLQJLQ3ROLVK SROLF\LQUHFHQW\HDUVFRQVLGHULQJWKHGL൵HUHQWFULWHULD+RZHYHUUHJDUGOHVVRI WKHVHOHFWLRQRISROLWLFLDQVIRUDQDO\VLVLVLPSRUWDQWWRLGHQWLI\WKHUROHZKLFK WKH\SOD\HGEHIRUHDQGDIWHUSDUW\VZLWFKLQJ2QWKLVEDVLVDSHUVRQDOLW\FKDUDF WHULVWLFVWKDWSUHGLVSRVHVSHFL¿FSROLWLFLDQVWRSDUWLFLSDWHLQSDUW\VZLWFKLQJ LQWKHIXWXUHFRXOGEHGHWHUPLQHG 7DEOH7\SHVRISROLWLFLDQVDQGPHGLDIHDWXUHVZKLFKSUHGLVSRVHWRSDUW\ VZLWFKLQJDIWHU 7\SHRI SROLWLFLDQ 7KHEDVLFIHDWXUHV 3RVLWLRQLQWKH SULPDU\SDUW\ EHIRUHSDUW\ VZLWFKLQJ 3RVLWLRQLQWKH QHZSDUW\DIWHU SDUW\VZLWFKLQJ 7KHPRVW GHVLUHG FKDUDFWHULVWLFV 7KHUDSSRUWHXUpoten WLDO media SROLWLFLDQV OHDGLQJUROHVLQWKHLU SDUWLHVWKDWKDYHWKH GHVLUHGFKDUDFWHULVWLFV $QH [D P SO H 7KHOHDGHU RIWKHSDUW\ $PELWLRQ 5HOLDELOLW\ 'HWHUPLQDWLRQ ,QWHOOLJHQFH &RQ¿GHQFH 9LVLRQDULQHVV 32 *U]HJRU]6FKHW\QD +DQQD*URQNLHZLF] :DOW] 3L6%HDWD6]\GáR 0DULXV].DPLĔVNL =\W D* LORZ VND  3ODWIRUPD 2E\ZDWHOVND 9LFH3UHVLGHQW RIWKHSDUW\  'HSXW\3ULPH DQG0LQLVWHURI )LQDQFHLQWKH JRYHUQPHQWRI3L6 ±FKRVHQ IURPYRWLQJOLVWV RI3L6 KDVD VLWLQ533 KLVWRU\RIRXUFLYLOL]DWLRQLQWKHGHPRFUDWLFZRUOGWKHUHLVUHVSRQVLELOLW\RISROLWLFLDQVIRUWKH GLUHFWLRQLQZKLFKWKHFRXQWU\LVJRLQJ7KLVLVDUHDOUHVSRQVLELOLW\WKDWZHFDQQRWFKDQJH RUGHQ\1RWKLQJDEROLVKHVWKLVUHVSRQVLELOLW\%HWWHUSURSDJDQGDVKDYHWULHG«Ä(0 7KHUHVHDUFKVKRZVWKH3ROLVKZDQWWRGUHDPDFKLHYHWDUJHWVDQGVRFLDOFRQVFLRXVQHVV «)URPWKHZRUOGRISROLWLFLDQV3ROHVZDQWDJRRGVWRU\DJRRGWDOHIRUHDFKGD\JRRG

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ $FORVHDV VRFLDWHRI WKHOHDGHU )RUFHGWR¿JKW IRUSRVLWLRQ /HDGHUVRI IDFWLRQV 'HFLVLRQ PDNHUVLQWKH UHJLRQV 32 &H]DU\*UDEDUF]\N 7RPDV]6LHPRQLDN 5DIDá*UXSLĔVNL 3L6 $QWRQL0DFLHUHZLF] -RDFKLP%UXG]LĔVNL 0DULXV]%áDV]F]DN 6/' :áRG]LPLHU]&]DU]DVW\ -RDQQD6HQ\V]\Q 'DULXV]-RĔVNL 36/:áDG\VáDZ .RVLQLDN.DP\V] 0DUHN6DZLFNL -DURVáDZ.DOLQRZVNL 5D GV áD Z 6 LNRUV NL  0LQLVWHURI 1DWLRQDO 'HIHQFH  0LQLVWHURI )RUHLJQ$൵DLUV 9LFH3UHVLGHQWRI 32  0LQLVWHURI )RUHLJQ$൵DLUV  0DUVKDORIWKH 6HMPRIWKH 5HSXEOLFRI 3RODQG $IRUPHU FORVHDVVR ciate of the OHDGHU 5HPRYHGIURP WKHGHFLVLRQ PDNLQJSUR FHVVLQWKH PDQDJHPHQW HJDGHFOLQ LQJSROLWLFDO VLJQL¿FDQFHD GLVJUDFH 3L6$GDP+RIPDQ 323DZHá=DOHZVNL 0LURVáDZ'U]HZLHFNL 6/'5\V]DUG.DOLV] :RMFLHFK2OHMQLF]DN 36/ :DOGHPDU3DZODN (XJHQLXV].áRSRWHN * U] HJRU] 1 DSL HUD OVNL _ &KDLUPDQRI 6/'  PDUJLQDOL]DWLRQ DFFHVVWR SROLWLFDOFDPSRI 32 Showman 0HGLD character &UHDWHVSR OLWLFDOHYHQWV FRPSOH[SROLWL FDOLPDJH 3L6-DFHN.XUVNL 7RPDV].DF]PDUHN 326WHIDQ 1LHVLRáRZVNL$GDP 6]HMQIHOG 6/' :áRG]LPLHU]&]DU]DVW\ -HU]\:HQGHUOLFK %D UWRV ]$ UáXNRZ DL F] OHIW ZLQJSROLWLFLDQ 6/'/L' 6G3/83 PHPH EHURI32 7ZLFHDV0LQLVWHU RI+HDOWK LQJRYHUQPHQWRI '7XVNDQG (.RSDF] Spin doctor 6SHFLDOLVW LQSROLWLFDO FDPSDLJQV &UHDWHVLP DJHVHOHFWLRQ VSRWVHYHQWV 3L60DUFLQ 0DVWDOHUHN$GDP %LHODQ 320LFKDá.DPLĔVNL 3DZHá*UDĞ 6/'7RPDV].DOLWD 0LF KD á. DP LĔV NL 3L6 PDLQVSLQ doctor with $%LHODQ FDPSDLJQ  2015 0HPEHURI32 6HFUHWDU\RIVWDWH LQWKHJRYHUQPHQW

^njLJŵŽŶ<ŽųŽĚnjŝĞũ 7KHWUDLWRU DFFRUGLQJ to the mo WKHUSDU WLHV /RQJWLPH PHPEHUVRI PRWKHUSDUWLHV 7UXVWHGDFWLY LVWVFULWLFL]LQJ WKHRSSRVLWLRQ %LWWHUQHVVWR ZDUGVPRWKHU SDUWLHVSHU VRQDOSROLF\ SURJUDP 3L60LFKDá.DPLĔVNL 5DGRVáDZ6LNRUVNL /XGZLN'RUQ 3DZHá3RQF\OLXV] =ELJQLHZ=LREUR-DQ 7RPDV]HZVNL(OĪELHWD -DNXELDN-RDQQD .OX]LN5RVWRZVND .D]LPLHU] 0DUFLQNLHZLF] 32-DQ5RNLWD 1HOO\5RNLWD =\WD*LORZVND -DURVáDZ*RZLQ -DQXV]3DOLNRW 6/' *U]HJRU]1DSLHUDOVNL 5\V]UDG.DOLV] :áRG]LPLHU] &LPRV]HZLF] 0DUHN%RURZVNL 7RPDV]1DáĊF] %RJGD Q%RUXV HZ LF ] Before 2005 DVVRFLDWHGZLWK 3L6 $IWHUDVVRFL DWHGZLWK32 0DUVKDORIWKH Senate $VHOISURF ODLPHG OHDGHU (new LQLWLDWLYH 0RYLQJDZD\ from the moth HUSDUWLHVGLV enchantment ZLWKSURJUDP matic and im DJHSROLF\ 7KHZLOOWR¿QG KLVRUKHURZQ SROLWLFDOSDUW\ %HOLHILQWKHLU RZQDELOLWLHV IHDWXUHVRI OHDGHUV 3L6=ELJQLHZ=LREUR -DURVáDZ*RZLQ -RDQQD.OX]LN 5RVWNRZVND 3DZHá.RZDO 32-DQXV]3DOLNRW 6/'0DUHN%RURZVNL $QGU]HM&HOLĔVNL -D QXV ]3 DO LNRW  PHPEHURI32  0HPEHURI 3DOLNRW0RYHPHQW UHFHLYHGLQ WKHHOHFWLRQVWRWKH 6HMPLQ

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ ,QWKHDQDO\VLVLIZHWRRNLQWRFRQVLGHUDWLRQRQO\WKHSROLWLFLDQVOLVWHGLQ FDWHJRU\ÄH[DPSOH´LWZRXOGVHHPWKDWHYHU\SDUW\VZLWFKLQJPHDQVLPSURYLQJ WKHSHUVRQDOVLWXDWLRQRIDFDQGLGDWH,WZRXOGEHREYLRXVWKDWLWLVWRRVLPSOLVWLF DQGGRHVQRWKDYHDEDVLVLQHPSLULFDOUHVHDUFK ,WFDQRQO\EHDVXJJHVWLYHKLQWWKDWLQWKHFDVHRIWKHPRVWIDPRXV SDUW\VZLWFKLQJLQWKHODVW\HDUVLQ3RODQGWKHUHZDVDGHSHQGHQFHWKHPRUH UHFRJQL]HGWKHSROLWLFLDQLVWKHPRUHVXFFHVVKHZRXOGKDYHDIWHUWKHFKDQJH RISROLWLFDOD൶OLDWLRQ7KDWZDVFHUWDLQO\WKHFDVHRI=\WD*LORZVND5DGRVáDZ 6LNRUVNL%RJGDQ%RUXVHZLF]%DUWRV]$UáXNRZLF]DQG-DQXV]3DOLNRW ,WLVPRUHGLIILFXOWWRDVVHVVWKHSROLWLFDOIRUWXQHVRI*U]HJRU]1DSLHUDOVNL RU0LFKDá.DPLĔVNLZKRDFFRUGLQJO\ZHUHÄDIRUPHUFORVHDVVRFLDWHRIWKH OHDGHU´DQGÄDVSLQGRFWRU´7KH\WKHQKDYHVZLWFKHGIURP6/'DQG3L6WR32 7KHSROLWLFLDQVPHQWLRQHGDVWKHPHGLDRQHVDQGDFWLQJSROLWLFDOO\LPSRUWDQW UROHVLQWKHLUSDUWLHVKDYHWKHRUHWLFDOO\DQH[FHOOHQWFKDQFHWKDWWKHLUWUDQVIHUV ZLOOEHDQQRXQFHGDVDVLJQL¿FDQWHYHQWLQSXEOLFOLIHDIWHUJRLQJLQWRRWKHU SROLWLFDOJURXSV+RZHYHUWKLVGRHVQRWXQGHUPLQHWKHIDFWWKDWZHFDQQRWWHOO IRUFHUWDLQZKHWKHUVXFKDSDUW\VZLWFKLQJLVDXWRPDWLFDOO\DUHFLSHIRUSROL WLFDOVXFFHVV5HFHLYLQJSURPLQHQWSRVLWLRQVLQSXEOLFOLIHLVDQRSSRUWXQLW\ QRWDJXDUDQWHHWKDWVSHFL¿FPHGLDFKDUDFWHUVUHDOO\KDYHVNLOOVDQGFRPSH WHQFLHVZKLFKZLOOHQVXUHH൵HFWLYHDQGFRUUHFWIXO¿OOPHQWRIWKHLUREOLJDWLRQV )URPWKHSRLQWRIYLHZRISROLWLFDOSDUWLHVWKDWDWWUDFWSHUVRQDOLWLHVRQWKHSROL WLFDOVFHQHWKHVLWXDWLRQORRNVLQDZD\DVLIVLPSO\EULQJLQJWKHPZDVDVXFFHVV LQWKHVSKHUHRIGLVFUHGLWLQJWKHFXUUHQWFRPSHWLWRU10RUDWOHDVWWKHSURPLVH RIDWWUDFWLQJFDQGLGDWHV¶YRWHUV11$IUHTXHQWH൵HFWLYHDQGKDUGO\GDQJHURXV PHFKDQLVPZDVWKDWSURSRVHGE\'RQDOG7XVNZKHQKHZDVDSULPHPLQLVWHU ,QRUGHUWRDYRLGWDNLQJSROLWLFDOUHVSRQVLELOLW\E\KLPVHOIIRURWKHUV¶SRVVLEO\ XQVXFFHVVIXOSDUW\VZLWFKLQJZKLFKWKHSXEOLFRSLQLRQZRXOGQRWDFFHSW KHKDGEHHQLQYROYLQJSDUWLFXODUFKDUDFWHUVLQWRWKHJRYHUQPHQWWRH[SRVHWKHP WKURXJKWKHODWHUSHULRGWRDQH[WHQGVRWKH\ZRXOGQ¶WGLVDSSHDUIURPWKHPDLQ VWUHDPPHGLD±WKXVJXDUDQWHHLQJKLPSRSXODULW\DQGFRQVHTXHQWO\WKHFKDQFH RIUHHOHFWLRQ 10 $VIRUWKHSDUW\VZLWFKLQJRIWKHPRVWDQWDJRQLVWLFSDUWLHVWKH3L6WRWKH32DQGYLFHYHUVD 8VXDOO\ZKHQOHDGHUVRIWKHVHSDUWLHVFRPPHQWVXFKSDUW\VZLWFKLQJLQWKHPHGLDWKH\GH¿QH LQYROYHGSHUVRQDVDWUDLWRU7KHQWKHSDUW\VZLWFKLQJLVRQO\DQHOHPHQWRIQHJDWLYHSROLWLFV 11 7KH QXPEHU RI YRWHV WKDW ZHUH FDVW LQ SUHYLRXV HOHFWLRQV RQ SDUWLFXODU SROLWLFLDQV FDQ

HQFRXUDJHWRDGRSWWKHPLQWKHLURZQUDQNVIRUH[DPSOH*U]HJRU]1DSLHUDOVNLLQ UHFHLYHGQHDUO\YRWHV%DUWRV]$UáXNRZLF]DIWHUSDUW\VZLWFKLQJWRWKHJRYHUQPHQWRI '7XVNLQWKHQH[WHOHFWLRQDERXWYRWHVPRUHWKDQZKHQWKH\VWDUWHGZLWK6/'OLVWV 2QWKHRWKHUKDQG0LFKDO.DPLQVNLGHVSLWHWKHIDFWWKDWKHUHQRXQFHGKLVPHPEHUVKLSZLWK 3L6LQDQGRQO\DIHZ\HDUVODWHUKHVWDUWHGIURPWKHOLVWRI32WRWKH(XURSDUOLDPHQW KDVQRWUHFHLYHGDPDQGDWH+RZHYHUKHZDVDGPLWWHGWRWKHJRYHUQPHQWRI'RQDOG7XVN DVXQGHUVHFUHWDU\RIVWDWH

^njLJŵŽŶ<ŽųŽĚnjŝĞũ $VIDUDVGRPHVWLFSROLWLFDOVFHQHLVFRQFHUQHGDOVRDIHZPLVVHG SDUW\VZLWFKLQJRFFXUUHG127KHPRVWIUHTXHQWUHDVRQZDVFRQVWDQWDUJXLQJ ZLWKWKHSDUW\OHDGHURUSXEOLFFULWLFLVPRIWKHSROLWLFDOSDUW\¶VPDQDJHPHQW 3ROLWLFLDQVZKRKDYHIRUPHGWKHLURZQSROLWLFDOJURXSVEHOLHYLQJWKDWWKH\ ZHUHDEOHWRDWWUDFWYRWHUVVWURQJO\DWWDFKHGWRWKHPDQGQRWWRVLJQERDUGRIWKH SDUW\KDGWRDOVRVZDOORZWKHELWWHUQHVVRIHOHFWRUDOGHIHDWV7KHKLVWRU\RISDUW\ VZLWFKLQJVKRZVWKDWRQHVKRXOGQ¶WFORVHWKHZD\EDFNWRWKHPRWKHUSDUW\ LIRQHGRHVQRWSXUVXH³WRWDOFULWLFLVP´LQUHODWLRQWRWKLVSDUW\)RUH[DPSOH WKHGHSDUWXUHRI-DURVáDZ*RZLQIURP32IRUPLQJWKHQHZSDUW\3ROVND5D]HP DQGWUDQVIHUWR3L6XQGHUWKHXQLWHGULJKWZLQJWHDFKHVWKDWPRGHUDWLRQLQSROL WLFVLQVSLWHRIFULWLFLVPRILWVSDUWLFLSDQWVRSHQVWKHZD\IRUIXUWKHUSROLWLFDO DOOLDQFHV0RUHRYHUDVLPLODUDWWLWXGHFDQOHDGWRDQLQFUHDVHGPDUNHWSRVLWLRQ RIWKHSROLWLFDOJURXSIURPZKLFKRQHRULJLQDWHV7KHVDPHZDVWKHFDVHZLWK ==LREURZKRHYHQWXDOO\UHWXUQHGWRWKHSDUW\RI-.DF]\ĔVNL,IWKHSROLWL FLDQVKDYHDZHDNHULPDJHDQGSDVVWRRWKHUSDUW\EHIRUHHOHFWLRQWKHGHIHDW ZLOOFRQVLVWRIQRWUHFHLYLQJWKHPDQGDWHZKLFKLQIDFWZRXOGFORVHWKHLUSROL WLFDOFDUHHU2QRQHKDQGLWPHDQVQRIXWXUHLQWKHQHZSDUW\LIKHGLGQ¶WDWWUDFW YRWHUVKHLVQ¶WYDOXDEOHIRUXVRQWKHRWKHUKDQGKHFRXOGQ¶WUHWXUQWRWKHSDUW\ IURPZKLFKKHFDPHDQGKHLVFRQVLGHUHGD³WUDLWRU´ 3ROLWLFDOFRQGLWLRQVDUHYDULDEOH'HSHQGLQJRQZKHWKHUWKH\DUHDFFRP PRGDWLYHWRLQGLYLGXDOSROLWLFLDQVSDUWLHVDWGL൵HUHQWPRPHQWVRIWKHLUDFWL YLWLHVVKRXOGEHUHDG\WRULVNWKHLUDGRSWLRQ7KH\FDQJHWQHZYRLFHVDNLQG RIµDGGHGYDOXH¶MXVWLI\LQJWKHWUDQVIHUE\WKHRSHQLQJRIWKHSURJUDPDQG ZRUOGYLHZ7KHUHLVQRWPXFKULVN,QWKHZRUVWVFHQDULRWKHGHSXW\ZLOOQRW EHHOHFWHGDQGZLOOEHTXLFNO\IRUJRWWHQE\WKHSXEOLF3ROLWLFLDQVWKHPVHOYHV ³SXWDWULVN´PXFKPRUH±WKH\FRXOGJDLQDVWKHPRVWIDPRXVSDUW\VZLWFKLQJ VKRZVDORWIURPUHHOHFWLRQWRSRVLWLRQLQJRYHUQPHQW%XWWKHUHLVDOVRDORW WRORVHRYHUDOOEUDQGUHSXWDWLRQDQGWKHLULPDJH¶VFRQVLVWHQF\7KRVHDUHULVNLQJ WKHPRVWZKLFKSUHYLRXVO\KDGEHHQSUDFWLFLQJ³WRWDOFULWLFLVP´WKH\IDFH VRFLHW\DVPHPEHUVRIWKHWHDPZKLFKWKH\KDGGHVSLVHGLQWKHSDVW 12 )RUH[DPSOH-DQ7RPDV]HZVNL3DZHá=DOHZVNL0DUHN0LJDOVNL3DZHá3RQF\OLXV]3DZHá

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ

7DEHOH7KHFRPSDULVRQRIVWDWHPHQWVRISURPLQHQWSROLWLFLDQVEHIRUHDQG DIWHUSDUW\VZLWFKLQJ

3ROLWLFLDQ %HIRUHSDUW\VZLWFKLQJ $IWHUSDUW\VZLWFKLQJ

*U]HJRU]1DSLHUDOVNL 6/' 32 Ä3HRSOHZLOO¿JKW\RXR൵ WKH\VORZO\KDYHHQRXJKRI HPSW\SURPLVHVDQGSROLWLFDO FURVVGUHVVLQJLQGL൵HUHQWFOR WKHVWKDQWKRVHZKLFKWKH\QRU PDOO\DVVXPHÄÄ32LVDSDUW\ ZLWKRXWDQLGHD´ Ä,VWURQJO\EHOLHYHWKDWZKDW LVKDSSHQLQJKHUHLQWKLVKDOO LQ:DUVDZLVDOVRDEHJLQQLQJ RIVRPHWKLQJQHZVRPHWKLQJ ZLGHURSHQHYHQLIZHDUH GL൵HUHQWZHVKRXOGEHGL൵HUHQW EHDXWLIXOO\´ /XGZLN'RUQ 3L6 32 EHKDYHGOLNHDFDSULFLRXVEUDW´Ä3ULPH0LQLVWHU'RQDOG7XVN Ä6LQFH,ZDVRQO\DWUDQVSODQWHG WZLQWRWKH.DF]\ĔVNLEURWKHUV WKLVOLQNKDVEHHQFXWR൵ORQJ WLPHDJR´ 0LFKDá.DPLĔVNL 3L6 32 Ä7KRVH¶KDQGKHOG¶32SROLWL FLDQVPD\\HWPDNHRQO\WKRVH KDQGKHOGFRXSVWKDWWKH\WDNH DSODQHIURPWKHSUHVLGHQWVR WKDWKHFDQQRWÀ\´ ³,DVD3ROLVKSDWULRW ZLOOYRWHIRUWKH32´ -DURVáDZ*RZLQ 32 3L6 Ä7KHRQHZKRZLOOYRWHIRU -.DF]\ĔVNLLVZDVWLQJWKH YRWH´ Ä7KHUHLVQRSROLWLFLDQRQWKH ULJKWVLGHRISROLWLFDOVFHQHZKR ZRXOGEHDEOHWRPHUJHVXFK DEURDGVSHFWUXPRIYLHZVDV -DURVODZ.DF]\QVNL´ -RDQQD.OX]LN5RVWNRZVND

3L6 32 Ä7KLVLVDZHDNDQGOD]\JRYHUQPHQW´ Ä,ORYHWKLVFRPSDQ\´

$SHUIHFWH[DPSOHRIDSROLWLFLDQZKRFKRRVHV³WKHZD\LQRQHGLUHF WLRQ´LV-DQXV]3DOLNRW+HVKRZHGWKHSDWKRISROLWLFDO³VKRZPDQ³WKDWLV EDVHGRQFULWLFLVPRI3L6DQGDOOWKRVHZKRZHUHV\PSDWKHWLFWR.DF]\QVNL EURWKHUVLQDQ\ZD\7KXVKHJDLQHGSRSXODULW\WKDWDOORZHGKLPWREUHDNDZD\ IURP32+HFUHDWHGKLVRZQSDUW\WDNLQJRQWKHUROHRI³VHOISURFODLPHG OHDGHU³XVLQJOHIWLVWPRUDOVORJDQVDQGWKHZHDNQHVVRIWKHPDLQOHIWZLQJ SDUW\6/'UHDFKHGLQWKHHOHFWLRQVWRWKH3DUOLDPHQW,QWKHHOHFWLRQV RISUREDEO\IRUFHGE\WKH³XQLWHGOHIW´DQGWKHZHDNQHVVRIKLVRZQ VWUXFWXUHVOHDYLQJ5XFK3DOLNRWDE\KLV³FORVHDVVRFLDWHV´KHZLOOQRWUHFHLYH DFRPSDUDEOHUHVXOWOLNHLQHOHFWLRQ+LVVXFFHVVDQGIDLOXUHDWWKHVDPH WLPHZLOOFRQVLVWRIWRRIUHTXHQWFKDQJHVLQKLVSROLWLFDOLPDJH,WLVHDV\WR JDLQSRSXODULW\DVD³VKRZPDQ´PRUHGL൶FXOWLWLVWRWXUQLWLQWRWKHWUXVWIRU ³SROLWLFDOOHDGHU´7KLVSROLWLFLDQKLPVHOIDSSHDUHGEHIRUHWKHQHHGIRUIXUWKHU FKDQJHV7KLVWLPHGXHWRWKHHDUOLHUQHHGIRUFULWLFLVPRIDOOKHIDFHGWKH SUREOHPKRZWRFKDQJHRQFHDJDLQZLWKRXWSUHMXGLFHWRKLVSROLWLFDOLPDJH¶V FRQVLVWHQF\"

^njLJŵŽŶ<ŽųŽĚnjŝĞũ 7KHDQVZHUWRWKHPDLQTXHVWLRQDERXWWKHSROLWLFLDQ¶V¶PRWLYDWLRQWR VWUHQJWKHQDQRWKHUSDUW\E\KLVRZQSHUVRQVWLOOUHPDLQVRSHQ)LUVWO\LWLVGL൶ FXOWWRDQDO\]HDQGSXWIRUZDUGDK\SRWKHVLVZLWKRXWVWXG\LQJVRXUFHPDWHULDOV ,QWKLVFDVHLWZLOOFHUWDLQO\EHSROLWLFLDQVWKHPVHOYHVZKRPRQRQHKDQG GRHVQRWPDNHVHQVHWRVWXG\XQGHUÄODERUDWRU\´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ÄPRWKHUV³(DFKÄVHQVDWLRQDOÄWUDQVIHUVD\VPXFKQRWRQO\ DERXWSROLWLFLDQVEXWDOVRDERXWWKHLUFXUUHQWFRPSDQ\$GGLWLRQDOO\GHVFULEHG FDXVHVFDQRFFXUVHSDUDWHO\RUHYHQRQHE\RQHLQGL൵HUHQWVWDJHVZLWKYDU\LQJ GHJUHHRIVHULRXVQHVV,IWKH³PHGLDSROLWLFLDQV´LQWKHLUFOXEVH[KLELWSUHVHUYHG HYLGHQFHRIWKHSRVVHVVLRQRIWKHVHPRWLYDWLRQVWKHUHLVDKLJKULVNWKDWSDUW\ VZLWFKLQJZLOOLQWKHIXWXUHDOVREHSDUWRIWKHLUVWRU\ 7KHPRVWFRPPRQSROLWLFDOPRWLYDWLRQVRIWUDQVIHU ‡ 7KHZLOORIUHHOHFWLRQUHJDLQLQJWKHPDQGDWHIRUH[DPSOHDVDUHVXOW RIGZLQGOLQJVXSSRUWIRUWKHÄPRWKHU´SDUW\LQSROOV

‡ %HLQJ SXVKHG DZD\ IURP GHFLVLRQPDNLQJ SURFHVV LQ WKH SDUW\ PDQGDWHLVQRWLQGDQJHUEXWWKHUHLVDIHHOLQJRIODFNRILQÀXHQFH UHGXFWLRQRISROLWLFDOVLJQL¿FDQFH±GXHWRSV\FKRORJLFDOFRQGLWLRQV ‡ 3ROLWLFDODPELWLRQVWKHZLOOWRLPSURYHWKHLUVLWXDWLRQSROLWLFDOSRVL WLRQLQÀXHQFHPRQH\WKHIDLWKLQWKHLURZQVNLOOVDQGFRPSHWHQFLHV RIWHQHQGVXSZLWKWKHDWWHPSWWRFUHDWHWKHLURZQSROLWLFDOPRYHPHQW ‡ &RQÀLFWVZLWKWKHOHDGHUVKLSRIWKHSDUW\H[DPSOHUHDVRQVFULWLFLVP RIWKHSROLWLFDOZD\RIPDQDJHPHQWLQWKHPHGLDSXEOLFVWDWHPHQWLQ RSSRVLWLRQWRWKHR൶FLDOOLQHDQGSURJUDPRIWKHSDUW\SROLWLFDOVWUXJ JOHVLQWKHUHJLRQVOLNHIRULQVWDQFH¿JKWLQJZLWKORFDOOHDGHUVDERXW KRZWRFUHDWHDORFDORUQDWLRQDOHOHFWLRQOLVWV ‡ 7KHFKDQJHRISROLWLFDOYLHZVXQGHUVWDQGLQJWKHOHJLVODWLYHSURFHVV IURPWKHLQVLGHWKHSROLWLFLDQVRIÄRQHODZ´ZLWKVWURQJSKLORVRSKLFDO EHOLHIVZKRZDQWWRNHHSWKHLUFKDUDFWHURORJLFDOFRKHUHQFH

WĂƌƚLJ^ǁŝƚĐŚŝŶŐĂƐĂDĞĚŝĂWŚĞŶŽŵĞŶŽŶŝŶƚŚĞůĞĐƟŽŶĂŵƉĂŝŐŶ

Summary

6FLHQWL¿FUHVHDUFKRQWKHGHWHUPLQDQWVRISDUW\VZLWFKLQJLVVWLOOPRGHVW $OWKRXJKWKHUHDUHDIHZVWXGLHVLQQHZVSDSHUVDQGIRUHLJQPDJD]LQHVEXWWKH\ RIWHQSUHVHQWHGVFLHQWLVWLQWXLWLRQUDUHO\RQUHOLDEOH¿HOGUHVHDUFK,IDQ\SROLWL FLDQUHYHDOHGWKHDFWXDOPRWLYDWLRQVDQGFLUFXPVWDQFHVWKDWGHWHUPLQHGWKHFKDQJH RIFRORUVE\KLPGXULQJHOHFWLRQFDPSDLJQVLWZRXOGPHDQWKDWKHKDGXQFR YHUHGWKHSROLWLFDOÄEDFNURRP´WKXVH[SRVLQJKLVSROLWLFDOHJR2QWKHRWKHU KDQGUHO\LQJH[FOXVLYHO\RQPHGLDFRPPXQLFDWLRQVDQGHYHQWKHVWDWHPHQWV RIWKHLQWHUHVWHGSDUWLHVWKHPVHOYHVZRXOGQRWFKRRVHWKHFULWHULRQRIWKHYHUD FLW\RIVXEPLWWHGRSLQLRQ,WVKRXOGEHVHWXSDSULRULWKDWDUJXPHQWVMXVWLI\LQJ RUH[SODLQLQJWKHSROLWLFDOFKRLFHVDUHDOZD\VGLFWDWHGE\SROLWLFLDQV¶GHVLUHWR LPSURYHWKHLUSROLWLFDOVLWXDWLRQ&HUWDLQO\DJURZLQJQXPEHURIVRFLDOPHGLD XVHGE\WKHSROLWLFLDQVDQDO\VWVMRXUQDOLVWV±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¿QLWHSROLWLFDOLPDJHXVXDOO\IDPHGIRU LWVFODULW\2QO\LQWHUPVRIIXUWKHUDVVXPSWLRQVLWVKRXOGEHFRQVLGHUHGWRZKDW H[WHQWWKHSROLWLFLDQVGHFLGLQJWREULQJWKHWUDQVIHUVZHUHJXLGHGE\EUDQGDZDUH QHVVDQGMXVWH[SUHVVLYLW\RIWKHQHZFDQGLGDWHVDQGWRZKDWH[WHQWWKHLUSURIHV VLRQDOLVPDQGH[SHULHQFH7KHTXHVWLRQVDVNHGDUHDQLPSXOVHIRUIXUWKHUUHVHDUFK LQWKLVDUHD References:

&LFKRV] 0  0HWRG\ DQDOL]\ L GLDJQRVW\NL U\QNX SROLW\F]QHJR >LQ@ : -DEáRĔVNL /6RENRZLDNHGV0DUNHWLQJSROLW\F]Q\ZWHRULLLSUDNW\FH:URFáDZ:\GDZQLFWZR 8QLZHUV\WHWX:URFáDZVNLHJR &LFKRV]0:L]HUXQHNOLGHUDSROLW\F]QHJR>LQ@0-H]LĔVNLHG0DUNHWLQJSROLW\F]Q\ ±ZSRV]XNLZDQLXZ\ERUF]HJRVXNFHVX7RUXĔ &ZDOLQD:)DONRZVNL$0DUNHWLQJSROLW\F]Q\3HUVSHNW\ZDSV\FKRORJLF]QD*GDĔVN 'REHN±2VWURZVND%.RPXQLNRZDQLHSROLW\F]QHLSXEOLF]QH:DUV]DZD:\GDZQLFWZR 1DXNRZH3:1 +HOOHU:0HUVKRQ&3ROLWLFDO3DUWLHVDQG/HJLVODWLYH3DUW\6ZLWFKLQJ1HZ<RUN 0FPLOODQ

^njLJŵŽŶ<ŽųŽĚnjŝĞũ Ä$WKHQHXP3ROVNLH6WXGLD3ROLWRORJLF]QH´QR

-H]LĔVNL00DUNHWLQJSROLW\F]Q\DSURFHV\DNXOWXUDF\MQH3U]\SDGHN,,,5]HF]SRVSROLWHM 7RUXĔ:\GDZQLFWZR1DXNRZH8QLZHUV\WHWX0LNRáDMD.RSHUQLND

.ROF]\ĔVNL 0  6WUDWHJLH NRPXQLNRZDQLD SROLW\F]QHJR .DWRZLFH :\GDZQLFWZR 8QLZHUV\WHWXĝOąVNLHJR .RáRG]LHM6]:L]HUXQHNSROLW\F]Q\$QGU]HMD'XG\ZSUH]\GHQFNLHMNDPSDQLLZ\ERUF]HM 3UDZDL6SUDZLHGOLZRĞFLZURNX6WXGLD3ROLWLFDH8QLYHUVLWDWLV6LOHVLHQVLVLQSULQW /HDU\0:\ZLHUDQLHZUDĪHQLDQDLQQ\FKRV]WXFHDXWRSUH]HQWDFML*GDĔVN*GDĔVNLH :\GDZQLFWZR3V\FKRORJLF]QH 0D]XU07XUVND.DZD$0RGHUQL]DFMDLSURIHVMRQDOL]DFMDNDPSDQLLZ\ERUF]\FK .DPSDQLDSUH]\GHQFNDZ86$ZURNXÄ6WXGLD3ROLWLFDH8QLYHUVLWDWLV6LOHVLHQVLV´ 7RP9, 0LVWHZLF](.DUQRZVNL0$QDWRPLDZáDG]\:DUV]DZD:\GDZQLFWZR&]HUZRQH L&]DUQH 1LPPR'6DYDJH5&DQGLGDWHVDQG7KHLU,PDJHV&RQFHSWV0HWKRGVDQG)LQGLQJV 3DFL¿F3DOLVDGHV&$*RRG\HDU 1RUULV3$9LUWXRXV&LUFOH3ROLWLFDO&RPPXQLFDWLRQLQ3RVW,QGXVWULDO'HPRFUDFLHV 1HZ<RUN&DPEULGJH8QLYHUVLW\3UHVV 3LHWUDĞ='HF\GRZDQLHSROLW\F]QH:DUV]DZD:\G3:1 6HPSDFK00DUNHWLQJRZ\SURFHVEXGRZDQLDZL]HUXQNXQRZRF]HVQHM]RULHQWRZDQHM U\QNRZRRUJDQL]DFMLSROLW\F]QHMÄ5RF]QLN3ROLWRORJLF]Q\´QR

7XQNLV 3 6DIHW\ LQ 1XPEHUV *URXS /LQNDJHV DQG WKH 3HUVLVWHQFH RI 3DUW\ 6ZLWFKLQJ LQ