Risk sharing with Multilateral Financial Institutions in infrastructure and energy project financing : effect on capital relief for commercial banks

(Matsukawa and Habeck, 2007) analyse the main instruments for risk mitigation in infrastructure financing with Multilateral Financial Institutions (MFIs). Their review coincided with the global financial crisis of 2007-08, and is highly relevant in current times considering the sovereign debt crisis, the lack of available capital and the increases in bank regulation in Western economies. The current macroeconomic environment has seen a slowdown in the level of finance for infrastructure projects, as they pose a higher credit risk given their requirements for long term investments. The rationale for this work is to look for innovative solutions that are focused on the credit risk mitigation of infrastructure and energy projects whilst optimizing the economic capital allocation for commercial banks. This objective is achieved through risk-sharing with MFIs and looking for capital relief in project finance transactions. This research finds out the answer to the main question: "What is the impact of risk-sharing with MFIs on project finance transactions to increase their efficiency and viability?", and is developed from the perspective of a commercial bank assessing the economic capital used and analysing the relevant variables for it: Probability of Default, Loss Given Default and Recovery Rates, (Altman, 2010). An overview of project finance for the infrastructure and energy sectors in terms of the volume of transactions worldwide is outlined, along with a summary of risk-sharing financing with MFIs. A review of the current regulatory framework beneath risk-sharing in structured finance with MFIs is also analysed. From here, the impact of risk-sharing and the diversification effect in infrastructure and energy projects is assessed, from the perspective of economic capital allocation for a commercial bank. CreditMetrics (J. P. Morgan, 1997) is applied over an existing well diversified portfolio of project finance infrastructure and energy investments, working with the main risk capital measures: economic capital, RAROC, and EVA. The conclusions of this research show that economic capital allocation on a portfolio of project finance along with risk-sharing with MFIs have a huge impact on capital relief whilst increasing performance profitability for commercial banks. There is an outstanding diversification effect due to the portfolio, which is combined with risk mitigation and an improvement in recovery rates through Partial Credit Guarantees issued by MFIs. A stress test scenario analysis is applied to the current assumptions and credit risk model, considering a downgrade in the rating for the commercial bank (lender) and an increase of default in emerging countries, presenting a direct impact on economic capital, through an increase in expected loss and a decrease in performance profitability. Getting capital relief through risk-sharing makes it more viable for commercial banks to finance infrastructure and energy projects, with the beneficial effect of a direct impact of these investments on GDP growth and employment. The main contribution of this work is to promote a strategic economic capital allocation in infrastructure and energy financing through innovative risk-sharing with MFIs and economic pricing to create economic value added for banks, and to allow the financing of more infrastructure and energy projects. This work suggests several topics for further research in relation to issues analysed. (Matsukawa and Habeck, 2007) analizan los principales instrumentos de mitigación de riesgos en las Instituciones Financieras Multilaterales (IFMs) para la financiación de infraestructuras. Su presentación coincidió con el inicio de la crisis financiera en Agosto de 2007, y sus consecuencias persisten en la actualidad, destacando la deuda soberana en economías desarrolladas y los problemas capitalización de los bancos. Este entorno macroeconómico ha ralentizado la financiación de proyectos de infraestructuras. El actual trabajo de investigación tiene su motivación en la búsqueda de soluciones para la financiación de proyectos de infraestructuras y de energía, mitigando los riesgos inherentes, con el objeto de reducir el consumo de capital económico en los bancos financiadores. Este objetivo se alcanza compartiendo el riesgo de la financiación con IFMs, a través de estructuras de risk-sharing. La investigación responde la pregunta: "Cuál es el impacto de risk-sharing con IFMs, en la financiación de proyectos para aumentar su eficiencia y viabilidad?". El trabajo se desarrolla desde el enfoque de un banco comercial, estimando el consumo de capital económico en la financiación de proyectos y analizando las principales variables del riesgo de crédito, Probability of Default, Loss Given Default and Recovery Rates, (Altman, 2010). La investigación presenta las cifras globales de Project Finance en los sectores de infraestructuras y de energía, y analiza el marco regulatorio internacional en relación al consumo de capital económico en la financiación de proyectos en los que participan IFMs. A continuación, el trabajo modeliza una cartera real, bien diversificada, de Project Finance de infraestructuras y de energía, aplicando la metodología CreditMet- rics (J. P. Morgan, 1997). Su objeto es estimar el consumo de capital económico y la rentabilidad de la cartera de proyectos a través del RAROC y EVA. La modelización permite estimar el efecto diversificación y la liberación de capital económico consecuencia del risk-sharing. Los resultados muestran el enorme impacto del efecto diversificación de la cartera, así como de las garantías parciales de las IFMs que mitigan riesgos, mejoran el recovery rate de los proyectos y reducen el consumo de capital económico para el banco comercial, mientras aumentan la rentabilidad, RAROC, y crean valor económico, EVA. En escenarios económicos de inestabilidad, empeoramiento del rating de los bancos, aumentos de default en los proyectos y de correlación en las carteras, hay un impacto directo en el capital económico y en la pérdida de rentabilidad. La liberación de capital económico, como se plantea en la presente investigación, permitirá financiar más proyectos de infraestructuras y de energía, lo que repercutirá en un mayor crecimiento económico y creación de empleo. La principal contribución de este trabajo es promover la gestión activa del capital económico en la financiación de infraestructuras y de proyectos energéticos, a través de estructuras innovadoras de risk-sharing con IFMs y de creación de valor económico en los bancos comerciales, lo que mejoraría su eficiencia y capitalización. La aportación metodológica del trabajo se convierte por su originalidad en una contribución, que sugiere y facilita nuevas líneas de investigación académica en las principales variables del riesgo de crédito que afectan al capital económico en la financiación de proyectos.

Shadow Analysis of Soil Surface Roughness Compared to the Chain Set Method and Direct Measurement of Micro-relief.

Erosion potential and the effects of tillage can be evaluated from quantitative descriptions of soil surface roughness. The present study therefore aimed to fill the need for a reliable, low-cost and convenient method to measure that parameter. Based on the interpretation of micro-topographic shadows, this new procedure is primarily designed for use in the field after tillage. The principle underlying shadow analysis is the direct relationship between soil surface roughness and the shadows cast by soil structures under fixed sunlight conditions. The results obtained with this method were compared to the statistical indexes used to interpret field readings recorded by a pin meter. The tests were conducted on 4-m2 sandy loam and sandy clay loam plots divided into 1-m2 subplots tilled with three different tools: chisel, tiller and roller. The highly significant correlation between the statistical indexes and shadow analysis results obtained in the laboratory as well as in the field for all the soil?tool combinations proved that both variability (CV) and dispersion (SD) are accommodated by the new method. This procedure simplifies the interpretation of soil surface roughness and shortens the time involved in field operations by a factor ranging from 12 to 20.

Landslide risk in Haiti and land management in Port au Prince

This thesis aims to identify landslide risk zones in Haiti as a whole (regional scale) and Port au Prince specifically (local scale) and to evaluate how this landslide risk can affect them, especially to Port au Prince, in order to elaborate recommendations in priority zones of the city. Landslide risk priority zones are marked in order to apply land management recommendations supported in the Haitian land tenure to reduce, mitigate or delete at maximum the possible damages that these zones can suffer in the future due to landslides. These recommendations are collected in order to stakeholders decide which of them are the best options for each priority zone. Different types of maps are generated in order to locate all landslide risk zones and priority zones.

Multi-hazard analysis and identification of priority settlements for land management in Haiti

Seismic hazard study in “La Hispaniola” island in connection with the land tenure situation in the region, in order to define priority areas with a high risk, where some land management recommendations are proposed. The seismic hazard assessment has been carried out following the probabilistic method with a seismogenic zonation and including the major faults of the region as independent units. In order to identify the priority areas, it has taken into account, besides the seismic hazard study, the map of changes of static Coulomb failure stress and the landslide hazard map.

Seismic Risk Scenarios in Puerto Principe (Haiti). A Tool for Reconstruction and Emergency Planning

The 12 January 2010, an earthquake hit the city of Port-au-Prince, capital of Haiti. The earthquake reached a magnitude Mw 7.0 and the epicenter was located near the town of Léogâne, approximately 25 km west of the capital. The earthquake occurred in the boundary region separating the Caribbean plate and the North American plate. This plate boundary is dominated by left-lateral strike slip motion and compression, and accommodates about 20 mm/y slip, with the Caribbean plate moving eastward with respect to the North American plate (DeMets et al., 2000). Initially the location and focal mechanism of the earthquake seemed to involve straightforward accommodation of oblique relative motion between the Caribbean and North American plates along the Enriquillo-Plantain Garden fault system (EPGFZ), however Hayes et al., (2010) combined seismological observations, geologic field data and space geodetic measurements to show that, instead, the rupture process involved slip on multiple faults. Besides, the authors showed that remaining shallow shear strain will be released in future surface-rupturing earthquakes on the EPGFZ. In December 2010, a Spanish cooperation project financed by the Politechnical University of Madrid started with a clear objective: Evaluation of seismic hazard and risk in Haiti and its application to the seismic design, urban planning, emergency and resource management. One of the tasks of the project was devoted to vulnerability assessment of the current building stock and the estimation of seismic risk scenarios. The study was carried out by following the capacity spectrum method as implemented in the software SELENA (Molina et al., 2010). The method requires a detailed classification of the building stock in predominant building typologies (according to the materials in the structure and walls, number of stories and age of construction) and the use of the building (residential, commercial, etc.). Later, the knowledge of the soil characteristics of the city and the simulation of a scenario earthquake will provide the seismic risk scenarios (damaged buildings). The initial results of the study show that one of the highest sources of uncertainties comes from the difficulty of achieving a precise building typologies classification due to the craft construction without any regulations. Also it is observed that although the occurrence of big earthquakes usually helps to decrease the vulnerability of the cities due to the collapse of low quality buildings and the reconstruction of seismically designed buildings, in the case of Port-au-Prince the seismic risk in most of the districts remains high, showing very vulnerable areas. Therefore the local authorities have to drive their efforts towards the quality control of the new buildings, the reinforcement of the existing building stock, the establishment of seismic normatives and the development of emergency planning also through the education of the population.

An evaluation of seismic hazard in La Hispaniola, after the 2010 Haiti earthquake

An evaluation of the seismic hazard in La Hispaniola Island has been carried out, as part of the cooperative project SISMO-HAITI, supported by the Technical University of Madrid (UPM) and developed by several Spanish Universities, the National Observatory of Environment and Vulnerability) ONEV of Haiti, and with contributions from the Puerto Rico Seismic Network (PRSN) and University Seismological Institute of Dominican Republic (ISU). The study was aimed at obtaining results suitable for seismic design purposes. It started with the elaboration of a seismic catalogue for the Hispaniola Island, requiring an exhaustive revision of data reported by more than 20 seismic agencies, apart from these from the PRSN and ISU. The final catalogue contains 96 historical earthquakes and 1690 instrumental events, and it was homogenized to moment magnitude, Mw. Seismotectonic models proposed for the region were revised and a new regional zonation was proposed, taking into account geological andtectonic data, seismicity, focal mechanisms, and GPS observations. In parallel, attenuation models for subduction and crustal zones were revised in previous projects and the most suitable for the Caribbean plate were selected. Then, a seismic hazard analysis was developed in terms of peak ground acceleration, PGA, and spectral accelerations, SA (T), for periods of 0.1, 0.2, 0.5, 1 and 2s, using the Probabilistic Seismic Hazard Assessment (PSHA) methodology. As a result, different hazard maps were obtained for the quoted parameters, together with Uniform Hazard Spectra for Port au Prince and the main cities in the country. Hazard deaggregation was also carried out in these towns, for the target motion given by the PGA and SA (1s) obtained for return periods of 475, 975 and 2475 years. Therefore, the controlling earthquakes for short- and long-period target motions were derived. This study was started a few months after the 2010 earthquake, as a response to an aid request from the Haitian government to the UPM, and the results are available for the definition of the first building code in Haiti.

Horizontal to vertical spectral ratio measurements in Port-au-Prince (Haiti) area damaged by the 2010 Haiti earthquake

In order to evaluate ground shaking characteristics due to surface soil layers in the urban area of Port-au-Prince, short-period ambient noise observation has been performed approximately in a 500x500m grid. The HVSR method was applied to this set of 36 ambient noise measurement points to determine a distribution map of soil predominant periods. This map reveals a general increasing trend in the period values, from the Miocene conglomerates in the northern and southern parts of the town to the central and western zones formed of Pleistocene and Holocene alluvial deposits respectively, where the shallow geological materials that cover the basement increase in thickness. Shorter predominant periods (less than 0.3 s) were found in mountainous and neighbouring zones, where the thickness of sediments is smaller whereas longer periods (greater than 0.5 s) appear in Holocene alluvial fans, where the thickness of sediments is larger. The shallow shear-wave velocity structure have been estimated by means of inversion of Rayleigh wave dispersion data obtained from vertical-component array records of ambient noise. The measurements were carried out at one open space located in Holocene alluvial deposits, using 3 regular pentagonal arrays with 5, 10 and 20m respectively. Reliable dispersion curves were retrieved for frequencies between 4.0 and 14 Hz, with phase velocity values ranging from 420m/s down to 270 m/s. Finally, the average shear-wave velocity of the upper 30 m (VS30) was inverted for characterization of this geological unit.

Using damage from 2010 Haiti earthquake for vulnerability estimation of typical structures in Port-au-Prince (Haiti).

After the 2010 Haiti earthquake, that hits the city of Port-au-Prince, capital city of Haiti, a multidisciplinary working group of specialists (seismologist, geologists, engineers and architects) from different Spanish Universities and also from Haiti, joined effort under the SISMO-HAITI project (financed by the Universidad Politecnica de Madrid), with an objective: Evaluation of seismic hazard and risk in Haiti and its application to the seismic design, urban planning, emergency and resource management. In this paper, as a first step for a structural damage estimation of future earthquakes in the country, a calibration of damage functions has been carried out by means of a two-stage procedure. After compiling a database with observed damage in the city after the earthquake, the exposure model (building stock) has been classified and through an iteratively two-step calibration process, a specific set of damage functions for the country has been proposed. Additionally, Next Generation Attenuation Models (NGA) and Vs30 models have been analysed to choose the most appropriate for the seismic risk estimation in the city. Finally in a next paper, these functions will be used to estimate a seismic risk scenario for a future earthquake.

An Ant Colony System adaptation to deal with accessibility issues after a disaster

One of the main problems relief teams face after a natural or man-made disaster is how to plan rural road repair work tasks to take maximum advantage of the limited available financial and human resources. Previous research focused on speeding up repair work or on selecting the location of health centers to minimize transport times for injured citizens. In spite of the good results, this research does not take into account another key factor: survivor accessibility to resources. In this paper we account for the accessibility issue, that is, we maximize the number of survivors that reach the nearest regional center (cities where economic and social activity is concentrated) in a minimum time by planning which rural roads should be repaired given the available financial and human resources. This is a combinatorial problem since the number of connections between cities and regional centers grows exponentially with the problem size, and exact methods are no good for achieving an optimum solution. In order to solve the problem we propose using an Ant Colony System adaptation, which is based on ants? foraging behavior. Ants stochastically build minimal paths to regional centers and decide if damaged roads are repaired on the basis of pheromone levels, accessibility heuristic information and the available budget. The proposed algorithm is illustrated by means of an example regarding the 2010 Haiti earthquake, and its performance is compared with another metaheuristic, GRASP.

Análisis de la eficiencia de los sistemas de colonias de hormigas para problemas de accesibilidad

A pesar de los avances en materia de predicción, los desastres naturales siguen teniendo consecuencias devastadoras. Entre los principales problemas a los que se enfrentan los equipos de ayuda y rescate después de un desastre natural o provocado por el hombre se encuentra la planificación de las tareas de reparación de carreteras para conseguir la máxima ventaja de los limitados recursos económicos y humanos. En la presente Tesis Fin de Máster se intenta dar solución al problema de la accesibilidad, es decir, maximizar el número de supervivientes que consiguen alcanzar el centro regional más cercano en un tiempo mínimo mediante la planificación de qué carreteras rurales deberían ser reparadas dados unos recursos económicos y humanos limitados. Como se puede observar, es un problema combinatorio ya que el número de planes de reparación y conexiones entre las ciudades y los centros regionales crece de forma exponencial con el tamaño del problema. Para la resolución del problema se comienza analizando una adaptación básica de los sistemas de colonias de hormigas propuesta por otro autor y se proponen múltiples mejoras sobre la misma. Posteriormente, se propone una nueva adaptación más avanzada de los sistemas de colonias de hormiga al problema, el ACS con doble hormiga. Este sistema hace uso de dos tipos distintos de hormigas, la exploradora y la trabajadora, para resolver simultáneamente el problema de encontrar los caminos más rápidos desde cada ciudad a su centro regional más cercano (exploradora), y el de obtener el plan óptimo de reparación que maximice la accesibilidad de la red (trabajadora). El algoritmo propuesto se ilustra por medio de un ejemplo de gran tamaño que simula el desastre natural ocurrido en Haití, y su rendimiento es comparado con la combinación de dos metaheurísticas, GRASP y VNS.---ABSTRACT---In spite of the advances in forecasting, natural disaster continue to ocasionate devastating consequences. One of the main problems relief teams face after a natural or man-made disaster is how to plan rural road repair work to take maximum advantage of the limited available financial and human resources. In this Master´s Final Project we account for the accesability issue, that is, to maximize the number of survivors that reach the nearest regional center in a minimum time by planning whic rural roads should be repaired given the limited financial and human resources. This is a combinatorial problem since the number of possible repairing solutions and connections between cities and regional centers grows exponentially with the size of the problem. In order to solve the problem, we analyze the basic ant colony system adaptation proposed by another author and point out multiple improvements on it. Then, we propose a novel and more advance adaptation of the ant colony systems to the problem, the double- ant ACS. This system makes use of two diferent type of ants, the explorer and the worker, to simultaneously solve the problem of finding the shorthest paths from each city to their nearest regional center (explorer), and the problem of identifying the optimal repairing plan that maximize the network accesability (worker). The proposed algorithm is illustrated by means of a big size example that simulates the natural disaster occurred in Haiti, and its performance is compared with a combination of two metaheuristics, GRASP and VNS.

50 Years Ago We Marched: What began on the grounds of Lincoln University, ended on the steps of the Alabama State Capitol

LINCOLN UNIVERSITY - On March 25, 1965, a bus loaded with Lincoln University students and staff arrived in Montgomery, Ala. to join the Selma march for racial and voting equality. Although the Civil Rights Act of 1964 was in force, African-Americans continued to feel the effects of segregation. The 1960s was a decade of social unrest and change. In the Deep South, specifically Alabama, racial segregation was a cultural norm resistant to change. Governor George Wallace never concealed his personal viewpoints and political stance of the white majority, declaring “Segregation now, segregation tomorrow, segregation forever.” The march was aimed at obtaining African-Americans their constitutionally protected right to vote. However, Alabama’s deep-rooted culture of racial bias began to be challenged by a shift in American attitudes towards equality. Both black and whites wanted to end discrimination by using passive resistance, a movement utilized by Dr. Martin Luther King Jr. That passive resistance was often met with violence, sometimes at the hands of law enforcement and local citizens. The Selma to Montgomery march was a result of a protest for voting equality. The Student Nonviolent Coordinating Committee (SNCC) and the Southern Christian Leadership Counsel (SCLC) among other students marched along the streets to bring awareness to the voter registration campaign, which was organized to end discrimination in voting based on race. Violent acts of police officers and others were some of the everyday challenges protesters were facing. Forty-one participants from Lincoln University arrived in Montgomery to take part in the 1965 march for equality. Students from Lincoln University’s Journalism 383 class spent part of their 2015 spring semester researching the historical event. Here are their stories: Peter Kellogg “We’ve been watching the television, reading about it in the newspapers,” said Peter Kellogg during a February 2015 telephone interview. “Everyone knew the civil rights movement was going on, and it was important that we give him (Robert Newton) some assistance … and Newton said we needed to get involve and do something,” Kellogg, a lecturer in the 1960s at Lincoln University, discussed how the bus trip originated. “That’s why the bus happened,” Kellogg said. “Because of what he (Newton) did - that’s why Lincoln students went and participated.” “People were excited and the people along the sidewalk were supportive,” Kellogg said. However, the mood flipped from excited to scared and feeling intimidated. “It seems though every office building there was a guy in a blue uniform with binoculars standing in the crowd with troops and police. And if looks could kill me, we could have all been dead.” He says the hatred and intimidation was intense. Kellogg, being white, was an immediate target among many white people. He didn’t realize how dangerous the event in Alabama was until he and the others in the bus heard about the death of Viola Liuzzo. The married mother of five from Detroit was shot and killed by members of the Ku Klux Klan while shuttling activists to the Montgomery airport. “We found out about her death on the ride back,” Kellogg recalled. “Because it was a loss of life, and it shows the violence … we could have been exposed to that danger!” After returning to LU, Kellogg’s outlook on life took a dramatic turn. Kellogg noted King’s belief that a person should be willing to die for important causes. “The idea is that life is about something larger and more important than your own immediate gratification, and career success or personal achievements,” Kellogg said. “The civil rights movement … it made me, it made my life more significant because it was about something important.” The civil rights movement influenced Kellogg to change his career path and to become a black history lecturer. Until this day, he has no regrets and believes that his choices made him as a better individual. The bus ride to Alabama, he says, began with the actions of just one student. Robert Newton Robert Newton was the initiator, recruiter and leader of the Lincoln University movement to join Dr. Martin Luther King’s march in Selma. “In the 60s much of the civil rights activists came out of college,” said Newton during a recent phone interview. Many of the events that involved segregation compelled college students to fight for equality. “We had selected boycotts of merchants, when blacks were not allowed to try on clothes,” Newton said. “You could buy clothes at department stores, but no blacks could work at the department stores as sales people. If you bought clothes there you couldn’t try them on, you had to buy them first and take them home and try them on.” Newton said the students risked their lives to be a part of history and influence change. He not only recognized the historic event of his fellow Lincolnites, but also recognized other college students and historical black colleges and universities who played a vital role in history. “You had the S.N.C.C organization, in terms of voting rights and other things, including a lot of participation and working off the bureau,” Newton said. Other schools and places such as UNT, Greenville and Howard University and other historically black schools had groups that came out as leaders. Newton believes that much has changed from 50 years ago. “I think we’ve certainly come a long way from what I’ve seen from the standpoint of growing up outside of Birmingham, Alabama,” Newton said. He believes that college campuses today are more organized in their approach to social causes. “The campus appears to be some more integrated amongst students in terms of organizations and friendships.” Barbara Flint Dr. Barbara Flint grew up in the southern part of Arkansas and came to Lincoln University in 1961. She describes her experience at Lincoln as “being at Lincoln when the world was changing.“ She was an active member of Lincoln’s History Club, which focused on current events and issues and influenced her decision to join the Selma march. “The first idea was to raise some money and then we started talking about ‘why can’t we go?’ I very much wanted to be a living witness in history.” Reflecting on the march and journey to Montgomery, Flint describes it as being filled with tension. “We were very conscious of the fact that once we got on the road past Tennessee we didn’t know what was going to happen,” said Flint during a February 2015 phone interview. “Many of the students had not been beyond Missouri, so they didn’t have that sense of what happens in the South. Having lived there you knew the balance as well as what is likely to happen and what is not likely to happen. As my father use to say, ‘you have to know how to stay on that line of balance.’” Upon arriving in Alabama she remembers the feeling of excitement and relief from everyone on the bus. “We were tired and very happy to be there and we were trying to figure out where we were going to join and get into the march,” Flint said. “There were so many people coming in and then we were also trying to stay together; that was one of the things that really stuck out for me, not just for us but the people who were coming in. You didn’t want to lose sight of the people you came with.” Flint says she was keenly aware of her surroundings. For her, it was more than just marching forward. “I can still hear those helicopters now,” Flint recalled. “Every time the helicopters would come over the sound would make people jump and look up - I think that demonstrated the extent of the tenseness that was there at the time because the helicopters kept coming over every few minutes.” She said that the marchers sang “we are not afraid,” but that fear remained with every step. “Just having been there and being a witness and marching you realize that I’m one of those drops that’s going to make up this flood and with this flood things will move,” said Flint. As a student at Lincoln in 1965, Flint says the Selma experience undoubtedly changed her life. “You can’t expect to do exactly what you came to Lincoln to do,” Flint says. “That march - along with all the other marchers and the action that was taking place - directly changed the paths that I and many other people at Lincoln would take.” She says current students and new generations need to reflect on their personal role in society. “Decide what needs to be done and ask yourself ‘how can I best contribute to it?’” Flint said. She notes technology and social media can be used to reach audiences in ways unavailable to her generation in 1965. “So you don’t always have to wait for someone else to step out there and say ‘let’s march,’ you can express your vision and your views and you have the means to do so (so) others can follow you. Jaci Newsom Jaci Newsom came to Lincoln in 1965 from Atlanta. She came to Lincoln to major in sociology and being in Jefferson City was largely different from what she had grown up with. “To be able to come into a restaurant, sit down and be served a nice meal was eye-opening to me,” said Newsom during a recent interview. She eventually became accustomed to the relaxed attitude of Missouri and was shocked by the situation she encountered on an out-of-town trip. “I took a bus trip from Atlanta to Pensacola and I encountered the worse racism that I have ever seen. I was at bus stop, I went in to be served and they would not serve me. There was a policeman sitting there at the table and he told me that privately owned places could select not to serve you.” Newsom describes her experience of marching in Montgomery as being one with a purpose. “We felt as though we achieved something - we felt a sense of unity,” Newsom said. “We were very excited (because) we were going to hear from Martin Luther King. To actually be in the presence of him and the other civil rights workers there was just such enthusiasm and excitement yet there was also some apprehension of what we might encounter.” Many of the marchers showed their inspiration and determination while pressing forward towards the grounds of the Alabama Capitol building. Newsom recalled that the marchers were singing the lyrics “ain’t gonna let nobody turn me around” and “we shall overcome.” “ I started seeing people just like me,” Newsom said. “I don’t recall any of the scowling, the hitting, the things I would see on TV later. I just saw a sea of humanity marching towards the Capitol. I don’t remember what Martin Luther King said but it was always the same message: keep the faith; we’re going to get where we’re going and let us remember what our purpose is.” Newsom offers advice on what individuals can do to make their society a more productive and peaceful place. “We have come a long way and we have ways to change things that we did not have before,” Newsom said. “You need to work in positive ways to change.” Referencing the recent unrest in Ferguson, Mo., she believes that people become destructive as a way to show and vent anger. Her generation, she says, was raised to react in lawful ways – and believe in hope. “We have faith to do things in a way that was lawful and it makes me sad what people do when they feel without hope, and there is hope,” Newsom says. “Non-violence does work - we need to include everyone to make this world a better place.” Newsom graduated from Lincoln in 1969 and describes her experience at Lincoln as, “I grew up and did more growing at Lincoln than I think I did for the rest of my life.”