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	<title type="text">Maddison Connaughton | Vox</title>
	<subtitle type="text">Our world has too much noise and too little context. Vox helps you understand what matters.</subtitle>

	<updated>2019-03-05T21:42:12+00:00</updated>

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		<entry>
			
			<author>
				<name>Maddison Connaughton</name>
			</author>
			
			<title type="html"><![CDATA[Refugees are enterprising and tech-savvy, research finds]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/12/29/10660420/ugandan-refugees-study" />
			<id>https://www.vox.com/2015/12/29/10660420/ugandan-refugees-study</id>
			<updated>2019-03-05T16:38:37-05:00</updated>
			<published>2015-12-29T09:00:02-05:00</published>
			<category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="World Politics" />
							<summary type="html"><![CDATA[What comes to mind when you think of a refugee camp? Maybe heat &#8212; and flies. Rows of tents as far as you can see. People who are hungry and desolate, waiting for their lives to begin again. Bustling markets buzzing with trade is probably not what you imagine. But that&#8217;s exactly what researchers from [&#8230;]]]></summary>
			
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<img alt="" data-caption="Rwandese refugees living in the Nakivale refugee camp in Uganda ride a bicycle in 2009. | WALTER ASTRADA/AFP/Getty Images" data-portal-copyright="WALTER ASTRADA/AFP/Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/15630679/GettyImages-93026238.0.1450900868.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	Rwandese refugees living in the Nakivale refugee camp in Uganda ride a bicycle in 2009. | WALTER ASTRADA/AFP/Getty Images	</figcaption>
</figure>
<p>What comes to mind when you think of a refugee camp? Maybe heat &mdash; and flies. Rows of tents as far as you can see. People who are hungry and desolate, waiting for their lives to begin again.</p>

<p>Bustling markets buzzing with trade is probably not what you imagine. But that&rsquo;s exactly what researchers from Oxford found when they spent months surveying refugee camps in Uganda.</p>

<p>Nakivale, one of the three camps, is the oldest and largest refugee settlement camp in Uganda. Over 64,000 people from more than 10 countries fill the 70-square-mile camp. More arrive every day. Most are Congolese, people who&rsquo;ve been trudging for weeks through the unforgiving forests of the Democratic Republic of Congo.</p>

<p><a href="http://www.rsc.ox.ac.uk/files/publications/other/refugee-economies-2014.pdf">The Oxford report</a> provides an important counterargument to many of the myths around refugees, highlighting just one example of the resilience and ingenuity of their communities in the face of immense hardship.</p>
<h2 class="wp-block-heading">There’s a buzzing economy within refugee settlement camps</h2>
<p>Based in rural southern Uganda, Nakivale is actually split into three distinct sections &mdash; Juru, Rubondo, and Base Camp. In each, markets have sprung up selling food, clothes, jewelry, and more. On the main street of Base Camp, the researchers found stalls stocked with electronics, beauty supplies, and vegetables &mdash; from tomatoes to cabbages to beans.</p>
<p><q class="center" aria-hidden="true"><span>11 percent of Sudanese start breweries, and 10 percent of urban Congolese become tailors</span></q></p>
<p>These markets in Base Camp are largely run by Somali refugees, who also run the camp&rsquo;s restaurants and bars. Meanwhile, Congolese, Rwandan, and Burundian refugees tend to grow crops within the camps.</p>

<p>When Somali stallholders buy this produce, a market emerges. The farming refugees take their earnings and spend them at the Somali markets, buying products that are hard to find elsewhere in the camps.</p>
<h2 class="wp-block-heading">Refugees interact with the outside world on a daily basis</h2>
<p>The flow of goods between camps is constant. Some entrepreneurial Somalis within Nakivale have even set up a mini bus service, running to another camp in Kampala (the Ugandan capital).</p>

<p>The quality of the produce grown by refugees often attracts Ugandans, who travel long distances to shop at the camps. As the study notes: &#8220;Each day, a significant number of Ugandans visit refugee settlements from neighbouring villages and cities such as Hoima, Mbarara, and Kampala to purchase products and services.&#8221;</p>

<p>For 15 percent of refugees in Nakivale and 45 percent in Kyangwali, Ugandans are their biggest customers.</p>

<p>By speaking with the refugees, the researchers formed a nuanced view of their daily lives. &#8220;During these exchanges, the image of isolated and inward-looking refugees engaged solely in &lsquo;subsistence farming&rsquo; gives way to a more networked reality,&#8221; the paper notes. &#8220;One in which refugee farmers are linked to national and even sub-regional supply chains of agricultural production.&#8221;</p>
<div data-chorus-asset-id="5851499"> <img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5851499/Screen%20Shot%202015-12-23%20at%202.24.54%20PM.png"><div class="caption">Trade network for refugee-raised corn.</div> </div>
<p>Indeed, in the Kampala camp, 2 percent of refugees surveyed even traded goods internationally. Refugee-grown corn, renowned for its high quality, travels as far as Kenya, Tanzania, and Rwanda.</p>
<h2 class="wp-block-heading">Refugees are creative and enterprising</h2>
<p>The principle of comparative advantage is at play within refugee communities. Arriving in Nakivale, many Somalis will quickly rent their allotted farm plots to other refugees and use the money as seed capital to start small businesses.</p>

<p>In rural areas, Somalis tend to sell clothes, textiles and accessories. In more urban areas, they gravitate toward becoming restaurateurs or shop owners. On the other hand, most Congolese, Rwandan, and Sudanese refugees in rural areas farm their own plots of land. Eleven percent of Sudanese start breweries; 10 percent of urban Congolese become tailors.</p>

<p>These entrepreneurial refugees are tech-savvy, with 89 percent of those in urban settings and 46 percent in rural settlements using mobile phones in their businesses.</p>

<p>In Nakivale&#8217;s Base Camp, there is high demand for tuna from the Somali population, who like fish but not the types caught in nearby Lake Nakivale. One refugee shop owner has met this demand by sourcing tuna originally produced in Thailand.</p>

<p>&#8220;From Dubai,&#8221; the researchers explain, &#8220;the cans are imported via Somali-run trade networks into Kenya, across the Kenyan-Uganda border from Mombasa into Kampala, and finally from Kampala to this small mud-and-daub shop in rural Southern Uganda.&#8221;</p>

<p>Elsewhere in Nakivale, Congolese refugees have launched a popular 12-seat cinema. For a small fee, people can watch anything from recent football matches to Hollywood films, dubbed into French, Swahili, and English. The theater manager even engages in marketing, blasting audio of the day&rsquo;s screenings from a loudspeaker above to cinema entrance to grab the attention of passersby.</p>

<p>Other refugees own private-hire taxi businesses, foreign currency exchanges, flour mills, computer-game parlors, and even pharmacies.</p>
<h2 class="wp-block-heading">Refugees want to be self-sufficient and give back to the local economy</h2>
<p>The researchers found refugees are aware of how unreliable humanitarian assistance is. While there is often an early flood of support when a conflict makes news, donations tend to dry up as foreigners lose interest in protracted humanitarian crises. In the face of this, refugees &#8220;do not simply wait passively for assistance.&#8221;</p>

<p>In Uganda, refugees are strong economic actors: 60 percent are self-employed and another 39 percent are employed by others. Only 1 percent are not employed in some form of work.</p>

<p>&#8220;The notion that all refugees receive humanitarian aid is far from reality in Uganda,&#8221; the paper explains. &#8220;In Kampala &hellip; survey data shows that 78% of urban refugee households manage to survive despite receiving no support of any form from UNHCR or other refugee-supporting agencies.&#8221;</p>
<div data-chorus-asset-id="5851511"><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5851511/Screen%20Shot%202015-12-23%20at%202.27.11%20PM.png"></div>
<p>Many refugees desire aid in the form of education and medical assistance. But what most of the refugees surveyed in Uganda wanted, even more than humanitarian aid, was the opportunity to be resettled and start their new lives.</p>
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			<entry>
			
			<author>
				<name>Maddison Connaughton</name>
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			<title type="html"><![CDATA[The simple trick Australia is using to reduce smoking rates]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/12/20/10629896/australia-plain-packaging" />
			<id>https://www.vox.com/2015/12/20/10629896/australia-plain-packaging</id>
			<updated>2019-03-05T16:42:12-05:00</updated>
			<published>2015-12-20T12:30:02-05:00</published>
			<category scheme="https://www.vox.com" term="Business &amp; Finance" /><category scheme="https://www.vox.com" term="Money" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="World Politics" />
							<summary type="html"><![CDATA[Cigarette packs in Australia look different from anywhere else in the world. There are no brand logos, no bright colors. Every pack is the same shade of dull brown, plastered with graphic images showing the health impacts of smoking. There&#8217;s the gangrenous foot, mouth cancer, and everyone&#8217;s favorite, the creepy sickly eye. Tobacco companies don&#8217;t [&#8230;]]]></summary>
			
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<img alt="" data-caption="Australian cigarette packages have graphic health warnings. | Cameron Spencer/Getty Images" data-portal-copyright="Cameron Spencer/Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/15631367/GettyImages-175127145.0.1494653207.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	Australian cigarette packages have graphic health warnings. | Cameron Spencer/Getty Images	</figcaption>
</figure>
<p>Cigarette packs in Australia look different from anywhere else in the world. There are no brand logos, no bright colors. Every pack is the same shade of dull brown, plastered with graphic images showing the health impacts of smoking. There&rsquo;s the gangrenous foot, mouth cancer, and everyone&rsquo;s favorite, <a href="http://resources0.news.com.au/images/2011/04/07/1226035/637668-11-04-07-nicola-roxon-cigarette-packets.jpg">the creepy sickly eye</a>.</p>

<p>Tobacco companies don&rsquo;t do this by choice. In 2011, Australia became the first country in the world to pass plain packaging laws that severely restrict what can appear on cigarette packs.</p>

<p>Naturally, Big Tobacco hates these laws and has done everything it can think of to get rid of them. On Friday, Australia <a href="https://www.ag.gov.au/Internationalrelations/InternationalLaw/Documents/Australias%20Response%20to%20the%20Notice%20of%20Arbitration%2021%20December%202011.pdf">defeated a challenge</a> by cigarette giant Philip Morris after a four-year international trade dispute in Singapore.</p>

<p>Big Tobacco is clearly running scared &mdash; and it should be. The latest ruling is likely to open the door for plain packaging laws around the world. Already, 11 other countries &mdash; including England, New Zealand, France, Brazil, India, and South Africa &mdash; have plans to implement their own plain packaging rules.</p>

<p>Other countries, including the United States, should follow Australia&rsquo;s lead. Plain packaging laws are a simple, cost-effective way to cut smoking rates. That&rsquo;s why tobacco companies hate them.</p>
<h2 class="wp-block-heading">Big Tobacco has been fighting plain packaging on many fronts</h2>
<p>Philip Morris exploited an obscure clause in Australia&rsquo;s free trade agreement with Hong Kong known as investor-state dispute settlement. President Obama&rsquo;s controversial Trans-Pacific Partnership trade agreement includes an ISDS provision, and it has <a href="http://www.vox.com/2015/11/10/9698698/tpp-investor-state-dispute-settlement">caused a lot of controversy</a>. Critics worried that big companies &mdash; like Philip Morris &mdash; could use the ISDS process to overturn countries&rsquo; democratically enacted laws.</p>

<p>Australia may have won this round, but its government now faces an estimated $50 million legal bill. And Philip Morris is not the only company to push back against plain packaging laws. In 2012, British American Tobacco (BAT) <a href="http://www.hcourt.gov.au/assets/publications/judgment-summaries/2012/hca43-2012-10-05.pdf">challenged the laws in Australia&rsquo;s high court</a>, alleging they infringed the company&rsquo;s intellectual property. The court ruled in favor of the government.</p>

<p>Eyebrows were raised at the World Trade Organization when Ukraine &mdash; a country that doesn&rsquo;t actually export tobacco to Australia &mdash; <a href="https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds434_e.htm">challenged plain packaging</a> as anti-trade. Later, it was discovered BAT had footed the country&rsquo;s legal bill.</p>

<p>It&rsquo;s not clear whether similar challenges from Cuba, the Dominican Republic, and Honduras are also funded by Big Tobacco.</p>

<p>While in public the tobacco giants insist plain packaging laws won&rsquo;t work, behind closed doors they have spent millions of dollars trying to discredit the laws.</p>

<p>In 2010, a newly formed group called the Alliance of Australian Retailers launched a media blitz criticizing plain packaging. It was a case of &#8220;astroturfing&#8221; &mdash; an attempt to give the impression of a widespread grassroots backlash against the laws that just didn&rsquo;t exist</p>

<p>Australian investigative journalists unearthed that <a href="http://www.theage.com.au/national/leaks-reveal-big-tobaccos-5m-blitz-20100911-155fl.html">Philip Morris, BAT, and Imperial funneled more than $5 million </a>into forming the Alliance of Australian Retailers. The group&rsquo;s argument against plain packaging was distilled into a simple message: &#8220;It won&rsquo;t work, so why do it.&#8221;</p>
<p><iframe frameborder="0" src="https://www.youtube.com/embed/hjqeiNvBSqw" height="480" width="853"></iframe></p>
<p>Of course, the obvious response is: If it won&rsquo;t work, why are you spending millions of dollars to fight it? The alliance wasn&rsquo;t effective. In fact, one study found for some people the ads <a href="http://www.cancervic.org.au/about/media-releases/2011-media-releases/media-march-2011/aus-retail-alliance.html">increased their support for plain packaging</a>.</p>
<h2 class="wp-block-heading">Early evidence suggests plain packaging is working</h2>
<p>The goal of the plain packaging laws is to make cigarettes less attractive and reduce the glamour of smoking. In lab studies, researchers have found they achieve this. <a href="http://www.cancer.org.au/content/pdf/CancerControlPolicy/PositionStatements/TCUCCVBkgrndResrchPlainPak270511ReEnd_FINAL_May27.pdf#_ga=1.49447523.476754269.1450517910">More than 20 studies</a>, undertaken over two decades in five countries, strongly suggest that plain packaging increases the impact of health warnings and reduces the appeal of cigarettes.</p>

<p>The laws aren&rsquo;t a silver bullet to make people stop smoking. Instead, they work alongside higher taxes, public health campaigns, and education to reduce smoking rates over time.</p>

<p>As Australia is the only country to have implemented the laws, real-world evidence on plain packaging is limited. However, there is a growing body of research gathered since the laws were enacted three years ago. While we don&rsquo;t yet have long-term evidence pointing to changes in smoking rates, short-term shifts seem positive.</p>

<p><a href="http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3710988/">A large study in the Australian state of Victoria</a> found that in just 12 months plain packaging both reduced the appeal of smoking and increased desire to quit for adult smokers. Another study found calls to Quitline, an Australian government service to help people quit smoking, <a href="https://www.mja.com.au/journal/2014/200/1/association-between-tobacco-plain-packaging-and-quitline-calls-population-based">rose by 78 percent after the plain packaging laws came into effect</a>. Smoking in outdoor areas, where the graphic packaging is visible to more people, <a href="http://onlinelibrary.wiley.com/doi/10.1111/add.12466/abstract">also declined</a>.</p>

<p>British American Tobacco hit back with <a href="http://www.bat.com/group/sites/uk__9d9kcy.nsf/vwPagesWebLive/DO9DKJEB/%24FILE/medMD9FRKWC.pdf">its own study by Deloitte</a>, which argued health warnings haven&rsquo;t been effective in reducing consumption of cigarettes. But this study wasn&rsquo;t independent &mdash; it was commissioned and funded by BAT. The study itself admits <a href="http://www.cancer.org.au/content/pdf/CancerControlPolicy/PositionStatements/TCUCCVBkgrndResrchPlainPak270511ReEnd_FINAL_May27.pdf#_ga=1.49447523.476754269.1450517910">the researchers were highly selective</a> about what brands they included.</p>
<h2 class="wp-block-heading">Tobacco taxes alone are not enough</h2>
<p>If cigarettes were like any other product, high taxes would be enough to make people stop buying them. But cigarettes are highly addictive, so rising prices don&rsquo;t have too much impact on a smoker&rsquo;s decision to buy cigarettes.</p>

<p>It&rsquo;s estimated that in rich countries, a 10 percent increase in the price of cigarettes will only bring about a 4 percent drop in demand. In poor to middle-income countries, the figures vary quite a bit because of a host of cultural and economic factors. For some though this sizable price bump <a href="http://www.who.int/tobacco/economics/meetings/dublin_demand_for_tob_feb2012.pdf">would reduce demand by just 2 percent</a>.</p>

<p>Of course, smokers could just take their cigarettes out of the packs. They could smoke rollies and put their tobacco in a tin. However, the evidence suggests very few people do. So the plain packs are always there, a graphic reminder of the harms of smoking. It&rsquo;s a behavioral nudge that smokers carry around with them.</p>

<p>Globally, <a href="http://www.who.int/mediacentre/factsheets/fs339/en/">tobacco kills around 6 million people every year</a>. Smoking costs the US <a href="http://www.cdc.gov/tobacco/data_statistics/fact_sheets/fast_facts/">more than $300 billion a year </a>through both direct medical bills and lost productivity. Taxes, education, and public health campaigns are all important in reducing harm. However, Australia has shown that plain packaging needs to be in the mix too. It&rsquo;s a simple and effective tool in the fight against a deadly habit.</p>
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			<entry>
			
			<author>
				<name>Maddison Connaughton</name>
			</author>
			
			<title type="html"><![CDATA[Star Wars will make its real money in the mall, not the cinema]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/12/18/10606300/star-wars-business-explained" />
			<id>https://www.vox.com/2015/12/18/10606300/star-wars-business-explained</id>
			<updated>2019-03-05T16:12:16-05:00</updated>
			<published>2015-12-18T14:30:02-05:00</published>
			<category scheme="https://www.vox.com" term="Business &amp; Finance" /><category scheme="https://www.vox.com" term="Culture" /><category scheme="https://www.vox.com" term="Money" />
							<summary type="html"><![CDATA[On Wednesday night I went to the London Star Wars premiere. Or, if you want to get technical, I was a very lost tourist caught up in the mass of people trying to catch a glimpse of Carrie Fisher&#8217;s dog, Gary. London&#8217;s Odeon Theatre was transformed into a sprawling red carpet, running the length of [&#8230;]]]></summary>
			
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<img alt="" data-caption="" data-portal-copyright="Lucasfilm/Disney" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/11016361/starwars5535301e22832.0.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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<p>On Wednesday night I went to the London <em>Star Wars</em> premiere. Or, if you want to get technical, I was a very lost tourist caught up in the mass of people trying to catch a glimpse of <a href="https://www.youtube.com/watch?v=HqRKaquTqoU">Carrie Fisher&rsquo;s dog, Gary</a>.</p>

<p>London&rsquo;s Odeon Theatre was transformed into a sprawling red carpet, running the length of a city block. A line of luxury cars, each more impressive than the last, stretched as far as you could see towards Piccadilly Circus. Paparazzi swarmed around the entrance of the W Hotel, craning to snap the stars milling around the official preparty.</p>

<p>The scale of the whole thing was overwhelming, but it shouldn&rsquo;t come as a surprise given the numbers around this release.</p>

<p>The <em>Star Wars</em> franchise has generated more than $32 billion in revenue over the past 38 years. <em>The Force Awakens</em> is expected to be its biggest earner yet, but the film&rsquo;s fortune won&rsquo;t be made in the cinema. It will be in the mall, where shoppers are expected to pick up $5 billion worth of merchandise over the next 12 months.</p>

<p>Branded <a href="https://twitter.com/Braun23Austin/status/676074843486314497">bags of oranges</a>, a <a href="http://www.potterybarnkids.com/products/star-wars-bed/">$3999 Millennium Falcon kid&rsquo;s bed</a> and toy <a href="http://www.hasbro.com/en-us/product/star-wars-the-black-series-kylo-ren-force-fx-deluxe-lightsaber:4C50A7F3-5056-9047-F51D-E97BE7123637">lightsabers</a> &mdash; these are the real force behind <em>Star Wars</em>.</p>
<h2 class="wp-block-heading">Disney made a huge bet on the <em>Star Wars</em> franchise</h2>
<p>Back in 2012, Disney bought Lucasfilm &mdash; the studio that created <em>Star Wars</em> &mdash; for $4.02 billion. The pair&rsquo;s first foray together, <a href="https://www.youtube.com/watch?v=YSrJiaZnPuU"><em>Strange Magic</em></a>, was released in January this year. It was a total flop, <a href="http://www.boxofficemojo.com/alltime/weekends/worstopenings.htm?page=WRSTOPN30">one of the worst ever opening weekends for a widely released film</a>.</p>

<p>But Disney wasn&rsquo;t worried. Buying Lucasfilm had one purpose: to acquire the rights to <em>Star Wars</em>. It&rsquo;s the world&rsquo;s most lucrative franchise, and it has been sitting on the shelf for 10 years since <em>Star Wars Episode III: Return of the Sith</em>.</p>
<div data-chorus-asset-id="5825889"><img data-chorus-asset-id="5833219" alt="SW_biggest1.0.jpg" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5833219/SW_biggest1.0.jpg"></div>
<p><em>Star Wars: The Force Awakens</em> is widely expected to be a huge hit for Disney, easily making back its $200 million budget. It&rsquo;s on track to become the third highest-grossing film of all time, behind James Cameron&rsquo;s blockbusters <em>Avatar</em> ($2.8 billion) and <em>Titanic</em> ($2.2 billion).</p>
<h2 class="wp-block-heading">Branded products are the real force behind <em>Star Wars</em></h2>
<p>When the <em>Star Wars</em> franchise launched in 1977, it transformed the movie industry. Creator George Lucas suspected that people actually going to see a film in the cinema would represent only a tiny fraction of its potential revenue; the real money would be in merchandise. It was an insight that made Lucas a billionaire.</p>

<p>Back in the early 1970s, Lucas was a young director with just two films on his r&eacute;sum&eacute; and a curious idea for an epic space opera. When 20th Century Fox decided to pick up <em>Star Wars</em>, Lucas came back with a deal: He was willing to accept a $350,000 pay cut as director in order to keep the film&rsquo;s merchandise rights, along with the rights to any sequels.</p>

<p>Not anticipating how popular the film would be, Fox accepted. Lucas is now worth more than $5 billion, having made one of the most profitable bets in history. In the 38 years since <em>Episode IV: A New Hope</em>, <em>Star Wars</em> has grossed $28 billion in revenue. And less than a sixth of this has come from ticket sales.</p>
<div data-chorus-asset-id="5825257"><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5825257/star_wars_how_much.gif"></div><h2 class="wp-block-heading">For a new era, there a new collector’s item (or a hundred)</h2>
<p>In buying Lucasfilm, Disney has secured both <em>Star Wars</em>&rsquo; film and merchandise rights. Already, the studio has laid out extensive plans to profit from the deal between now and 2020.</p>

<p>There will be two more &#8220;saga&#8221; films in 2017 and 2019, plus the &#8220;anthology&#8221; series &mdash; three standalone films within the <em>Star Wars</em> universe. The first, <em>Rogue One: A Star Wars Story</em>, is set between <em>Episode III: Revenge of the Sith</em> (2005) and <em>Episode IV: A New Hope</em> (1977) and will be released in December 2016.</p>

<p>Then, of course, there are the collector&rsquo;s items. Disney has always been good at merchandising, pioneering the practice with Mickey Mouse toys in the 1930s. For the release of <em>101 Dalmatians</em> in 1996, the studio made deals with more than 130 companies, including McDonald&rsquo;s and Dr. Pepper.</p>

<p>Disney is already the world&rsquo;s biggest licensor, selling more than $45.2 billion in 2014. Merchandise is particularly important for the studio in this age of illegal downloading. It&rsquo;s much easier to torrent a film than a to-scale toy replica of the Death Star.</p>

<p>Disney has made deals with scores of companies to create <em>Star Wars</em> branded products, from CoverGirl to Lego. Hasbro released more than 100 new toys in the lead-up to the release of <em>The Force Awakens</em>. Walmart announced it would carry more than 500 products in store and thousands more online.</p>

<p>How much does the studio stand to make? It&rsquo;s estimated that for every branded item sold, Disney takes a cut between 10 and 15 percent. <em>Star Wars</em> merch is expected to bring in $5 billion in sales over the coming 12 months, rising to as much as $20 billion in the next five years.</p>
<div data-chorus-asset-id="5825587"><img data-chorus-asset-id="5833243" alt="SW_franchise_parts.0.jpg" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5833243/SW_franchise_parts.0.jpg"></div><h2 class="wp-block-heading"><em>Star Wars</em> is embracing its diverse fan base</h2>
<p>While the typical image of a <em>Star Wars</em> collector is a fanboy, women are a big focus of <em>The Force Awakens</em>&rsquo; merchandise campaign. This is likely the effect of two forces &mdash; the popularity of the new film&rsquo;s heroine Rey and a growing awareness of the female market.</p>

<p><a href="http://www.covergirl.com/cosmetics/starwars-collection">CoverGirl has released a <em>Star Wars&ndash;</em>branded makeup collection</a>, <a href="http://www.hottopic.com/product/star-wars-c-3po-flats/10476250.html">Hot Topic has a clothing line</a>. In <a href="https://www.youtube.com/watch?v=eSXNSdkFt4o">one Walmart ad</a>, a young girl plays with <em>Star Wars</em> toys as her mom asks why the princess doesn&rsquo;t let boys rescue her. &#8220;Because she&rsquo;s a modern, empowered women,&#8221; the girl replies, &#8220;unfettered by the antiquated gender roles of a bygone era.&#8221; It has been viewed nearly 21 million times.</p>
<p><iframe frameborder="0" src="https://www.youtube.com/embed/eSXNSdkFt4o" height="480" width="853"></iframe></p>
<p>China&rsquo;s maturing market also offers big opportunities for Disney. This month, the studio&rsquo;s chair, Andy Bird, <a href="http://www.businesswire.com/news/home/20151211005416/en/Mcon-Official-Film-Merchandising-Convention-Mtime-Host">pitched <em>Star Wars: The Force Awakens&ndash;</em>branded merchandise to more than 800 Chinese cinema owners</a>, opening the door to millions of potential collectors.</p>

<p>At the moment, box office takings still account for around 80 to 90 percent of film revenue in China. Over the next few years, though, it&rsquo;s expected the country will come to account for a huge chunk of the <a href="https://www.licensing.org/news/lima-study-global-retail-sales-of-licensed-goods-hit-241-5b-in-2014/">$241.5 billion in global annual licensed merchandise retail sales</a>.</p>
<h2 class="wp-block-heading">All this hype doesn’t come cheap</h2>
<p>While there&rsquo;s been a lot of focus on <em>Star Wars</em> products, building excitement around the film and actually getting people into cinemas is still vitally important. If you&rsquo;ve stepped outside your house in the past few weeks, you would&rsquo;ve seen <em>Star Wars</em> everywhere &mdash; on billboards as you walk to work, TV ads, radio spots, endless articles analyzing the teaser trailers as you scroll through Facebook. Disney didn&rsquo;t get all that hype for free.</p>

<p>The average global marketing budget for a &#8220;tentpole&#8221; film (a release whose profits fund smaller productions) is around $100 million. Building hype overseas is increasingly important for blockbusters. Since 1999&rsquo;s <em>Phantom Menace</em>, the franchise has been making more money overseas than at the US box office.</p>
<img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5844911/SW_box_worldwide.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="Star Wars worldwide box office" title="Star Wars worldwide box office" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" />
<p>Long before <em>Star Wars</em> was on every billboard, though, Disney started building hype for the merchandise. In September, the film&rsquo;s YouTube channel hosted a worldwide &#8220;unboxing,&#8221; where fans in 12 countries unveiled the new toys via live stream. This came just ahead of Force Friday, the first release of official <em>Force Awakens</em> merch.</p>
<div data-chorus-asset-id="5830281"><img data-chorus-asset-id="5833279" alt="SW_box_domestic.0.jpg" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5833279/SW_box_domestic.0.jpg"></div>
<p>Much like the film&rsquo;s plot, the tie-in merchandise was shrouded in secrecy, protected by nondisclosure agreements between Disney and its retail partners. What we do know is that companies making <em>Star War&ndash;</em>branded merchandise have already smashed <a href="http://adage.com/article/media/star-wars-force-awakens-tv-spend-66/301693/">the previous advertising record of $26.5 million spent to promote <em>Minions</em></a>.</p>

<p><a href="https://www.youtube.com/watch?v=N9rBEM16g_w">Subway</a> and <a href="https://www.youtube.com/watch?v=7ESP8bPldl0">Dodge</a> have both released ads. <a href="https://www.youtube.com/watch?v=YBh0hgP8wWk">Duracell&rsquo;s</a> &#8220;Fight for Christmas Morning&#8221; has been viewed 15 million times on YouTube. The ubiquitous <em>Star Wars</em> ad even earned itself a spoof on S<em>aturday Night Live</em>.</p>
<p><iframe frameborder="0" src="https://www.youtube.com/embed/YBh0hgP8wWk" height="480" width="853"></iframe></p>
<p><em>Star Wars</em> merchandise occupies a unique position in the film world. Don&rsquo;t get me wrong &mdash; there are certainly some ghastly offerings. Suggestive C-3PO tape dispenser, anyone?</p>
<p><iframe loading="lazy" frameborder="0" src="https://www.youtube.com/embed/FH7XZPq-v6E" height="480" width="853"></iframe></p>
<p>But on the whole, the <em>Star Wars </em>merchandise isn&rsquo;t foisted on fans; they covet it. It&rsquo;s this love that Disney will be riding all the way to the bank. <a href="http://www.vox.com/2015/12/17/10383876/star-wars-episode-vii-the-force-awakens-review">It&rsquo;s just a bonus the film is pretty great as well</a>.</p>
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			<author>
				<name>Maddison Connaughton</name>
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			<title type="html"><![CDATA[The rise, infamy, and downfall of &#8220;pharma bro&#8221; Martin Shkreli, explained]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/2015/12/17/10436618/martin-shkreli-arrest-explained" />
			<id>https://www.vox.com/2015/12/17/10436618/martin-shkreli-arrest-explained</id>
			<updated>2019-03-05T16:26:43-05:00</updated>
			<published>2015-12-17T15:50:02-05:00</published>
			<category scheme="https://www.vox.com" term="Business &amp; Finance" /><category scheme="https://www.vox.com" term="Money" />
							<summary type="html"><![CDATA[Martin Shkreli became one of the most hated men on the internet back in September when he raised the price of an essential drug, Daraprim, more than 5,000 percent. Shkreli seemed to revel in his notoriety, firing taunts right back at people who attacked him on social media. This morning, federal officials arrested the entrepreneur [&#8230;]]]></summary>
			
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<p>Martin Shkreli became one of the most hated men on the internet back in September when he raised the price of an essential drug, Daraprim, more than 5,000 percent. Shkreli seemed to revel in his notoriety, firing taunts right back at people who attacked him on social media.</p>

<p>This morning, federal officials arrested the entrepreneur at his apartment in Manhattan. And it appears the charges have nothing to do with the Daraprim price hike that made him infamous online.</p>

<p>Instead, Shkreli is charged with defrauding his investors. According to the federal indictment, Shkreli moved funds between companies he co-founded under false pretenses, effectively stealing millions from the investors of one company in order to settle legal disputes involving another company.</p>

<p>It&rsquo;s a sudden and shocking downfall. And he&rsquo;s not likely to get much sympathy from his legions of online haters.</p>
<h2 class="wp-block-heading">Shkreli became infamous for charging astronomical prices for an essential drug</h2><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5645233/22129098909_608a132b4b_o.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /><p class="caption">Martin Shkreli. (<a href="https://www.flickr.com/photos/nepascene/22129098909/in/photolist-z3VYEA-zHtq96">Rich Howells</a>)</p>
<p>Toxoplasmosis is a parasitic disease. It&rsquo;s harmless in healthy people, but in those with weakened immune systems it can cause headaches, fever, fatigue, and seizures. Expectant mothers are particularly at risk, as toxoplasmosis can cause miscarriage.</p>

<p>Back in 1953, Nobel Prize&ndash;winning American scientist Gertrude Elion developed a drug called Daraprim, which can treat both toxoplasmosis and malaria. It&rsquo;s included in the <a href="http://www.who.int/selection_medicines/committees/expert/20/EML_2015_FINAL_amended_AUG2015.pdf?ua=1">World Health Organization&rsquo;s List of Essential Medicines</a> &mdash; the basics required for any health system.</p>

<p>Until recently, Daraprim wasn&rsquo;t very expensive. In 2014, a single pill cost $13.50 in the United States. Then a Shkreli company, Turing Pharmaceuticals, came onto the scene. Shkreli bought up the rights to Daraprim and immediately jacked up the price to $750 per pill.</p>

<p>The extortionate move caused national uproar. Unlike in the UK and Europe, <a href="http://www.vox.com/2015/9/22/9366721/daraprim-price-shkreli-turing">US law allows drug companies to set their prices with little regulation</a>. But that didn&rsquo;t mean people had to like it.</p>

<p>Bernie Sanders <a href="http://www.theguardian.com/us-news/2015/oct/16/bernie-sanders-rejects-donation-turing-ceo-martin-shkreli">publicly refused</a> a $2,700 campaign donation from Shkreli. Donald Trump <a href="http://www.hollywoodreporter.com/news/donald-trump-blasts-martin-shkreli-826848">called him</a> a &#8220;spoiled brat.&#8221; People began to label him the <a href="http://www.theatlantic.com/health/archive/2015/09/martin-shkreli-in-the-mirror/406888/">&#8220;pharma bro.&#8221;</a> He&rsquo;s become so toxic even PhRMA, the biotech industry group, has distanced itself from him.</p>
<blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">.<a href="https://twitter.com/TuringPharma">@TuringPharma</a> does not represent the values of <a href="https://twitter.com/PhRMA">@PhRMA</a> member companies.</p>&mdash; PhRMA (@PhRMA) <a href="https://twitter.com/PhRMA/status/646365063226519552">September 22, 2015</a> </blockquote><p></p>
<p>Shkreli seemed to revel in this hatred. After Hillary Clinton criticized Daraprim&rsquo;s pricing, he simply <a href="https://twitter.com/MartinShkreli/status/662311364963250176">tweeted back</a>, &#8220;lol.&#8221;</p>

<p>He&rsquo;s bragged about being the world&rsquo;s most eligible bachelor and taunted DC lawmakers.</p>
<blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">50-100 date solicitations a day for me, the world&#8217;s most eligible bachelor. Sorry, but you have to be a shareholder to meet me.</p>&mdash; Martin Shkreli (@MartinShkreli) <a href="https://twitter.com/MartinShkreli/status/676455235066425344">December 14, 2015</a> </blockquote><p></p><blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">In DC. If any politicians want to start, come at me. <a href="https://t.co/YrxWoSPQ1H">pic.twitter.com/YrxWoSPQ1H</a></p>&mdash; Martin Shkreli (@MartinShkreli) <a href="https://twitter.com/MartinShkreli/status/661621667815407616">November 3, 2015</a> </blockquote><p></p><h2 class="wp-block-heading">Shkreli outraged Wu-Tang fans by buying the only copy of their latest album</h2><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/5645735/GettyImages-490864012.0.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="" title="" data-has-syndication-rights="1" data-caption="" data-portal-copyright="" /><p class="caption">(Isaiah Trickey/FilmMagic)</p>
<p>Earlier this year, the seminal rap group Wu-Tang Clan finished their seventh album, <em>Once Upon a Time in Shaolin</em>. A single copy of the recording was made, 31 new songs presented in a hand-carved wooden box with a price tag of $2 million.</p>

<p>&#8220;We&rsquo;re about to put out a piece of art like nobody else has done in the history of music,&#8221; <a href="http://www.bloomberg.com/features/2015-martin-shkreli-wu-tang-clan-album/">RZA told Forbes</a>. &#8220;We&rsquo;re making a single-sale collector&rsquo;s item. This is like someone having the scepter of an Egyptian king.&#8221;</p>

<p>The album was sold through Paddle8, an online bidding agency, which organized private listening parties for prospective buyers in New York. When the buyer&rsquo;s name was kept anonymous, fans speculated it might have been Quentin Tarantino.</p>

<p>No one was excited when it was revealed the buyer was Shkreli. It&rsquo;s reported his favorite Wu-Tang song is <a href="https://www.youtube.com/watch?v=PBwAxmrE194">&#8220;C.R.E.A.M,&#8221;</a> which stands for &#8220;Cash Rules Everything Around Me.&#8221;</p>
<blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">Private album just for me. Who&#8217;s next?</p>&mdash; Martin Shkreli (@MartinShkreli) <a href="https://twitter.com/MartinShkreli/status/675127393061834754">December 11, 2015</a> </blockquote><p></p>
<p>Shkreli is supposedly yet to listen to the album, saving it &#8220;for a rainy day.&#8221; RZA has given away most of his proceeds from the sale in protest of Shkreli&rsquo;s business practices.</p>
<blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">Within 10 years, more than half of all rap/hip-hop music will be made exclusively for me. Don&#8217;t worry&#8211;I will share some of it.</p>&mdash; Martin Shkreli (@MartinShkreli) <a href="https://twitter.com/MartinShkreli/status/676071370355113984">December 13, 2015</a> </blockquote><p></p><h2 class="wp-block-heading">Shkreli was arrested Thursday morning for securities fraud</h2>
<p>While the public hatred was mostly focused on Shkreli&rsquo;s arrogance and greed, it&rsquo;s his creative accounting that may prove his real downfall.</p>

<p>Early Thursday he was led from his apartment in handcuffs, charged with misusing $11 million in company funds from Retrophin, a biopharmaceutical company he founded in 2011.</p>
<p><q class="right" aria-hidden="true"><span>In September 2014, Retrophin dumped Shkreli as chief executive</span></q></p>
<p>Before he became a notorious pharmaceutical executive, Shkreli was something of a Wall Street wunderkind. Starting as an intern at <em>Mad Money</em> host Jim Cramer&rsquo;s hedge fund at age 17, he worked his way up to found three companies in his mid-20s &mdash; Elea Capital Management, MSMB Capital Management, and MSMB Healthcare. Then at just 28 years old, he shifted to pharmaceuticals, launching Retrophin.</p>

<p>In September 2014, Retrophin dumped Shkreli as chief executive and launched an investigation into his actions at the helm. Shkreli then founded Turing, the firm whose extortionate pricing for Daraprim made him famous. Meanwhile, Retrophin&rsquo;s board found that Shkreli had used company funds to settle the debts of MSMB, which he&rsquo;d left in financial ruin.</p>

<p><a href="http://www.scribd.com/doc/293530336/1-main">According to the federal indictment</a> unsealed on Thursday, Shkreli and his outside counsel Evan Greebel orchestrated &#8220;three interrelated fraudulent schemes&#8221; between September 2009 and September 2014. The pair allegedly defrauded investors in MSMB Capital and MSMB Healthcare, before using funds from Retrophin to pay off both companies&#8217; debts.</p>

<p><a href="http://www.sec.gov/Archives/edgar/data/1438533/000119312515056286/d877873d8k.htm">In a filing with the Securities and Exchange Commission</a>, Retrophin reported that Shkreli had used Retrophin funds to pay off former MSMB investors, as well as to settle personal lawsuits. According to the company, Shkreli fraudulently reclassified a $900,000 investment MSMB made in Retrophin as a loan. Shkreli then allegedly had Retrophin pay this &#8220;loan&#8221; back to MSMB &mdash; enabling the hedge fund to use the money to settle one of its many legal disputes. And while Shkreli founded both companies, that doesn&rsquo;t give him the right to shift money between them without consent from the companies&rsquo; boards.</p>

<p>Between September 2013 and March 2014, 612,500 company shares were issued to former MSMB investors. While Shkreli described them as &#8220;consulting agreements,&#8221; Retrophin now says that was a ruse. Rather, their purpose &#8220;appears to have been to settle and release claims against the MSMB Entities or Mr. Shkreli personally, and not to provide meaningful and sustained consulting services to the Company.&#8221;</p>

<p>In August this year, <a href="https://dockets.justia.com/docket/new-york/nysdce/1:2015cv06451/446224">Retrophin sued Shkreli for $65 million</a>. The former chief quickly shot back, <a href="http://www.bloomberg.com/news/articles/2015-08-21/biotech-rebel-martin-shkreli-lashes-back-at-his-former-company-retrophin">demanding $70 million from the firm</a> and citing damage to his image as a businessman.</p>

<p>Even before Retrophin announced the findings of its internal investigation of Shkreli, there had been a criminal investigation underway by the US Attorney for the Eastern District of New York.</p>

<p>In January, Retrophin received a subpoena requesting &#8220;information regarding, among other things, the Company&rsquo;s relationship with the MSMB Entities and Mr. Shkreli.&#8221; In its SEC filings Retrophin made it clear that Shkreli, not the company itself, was the focus of the criminal investigation.</p>

<p>Share prices of KaloBios Pharmaceuticals, a company Shkreli recently acquired a majority stake in, fell 50 percent today before Nasdaq halted its trading indefinitely. Shkreli and Greebel, who was also arrested, are yet to comment or tweet about the charges.</p>

<p>On the internet, people have been having fun with Shkreli&#8217;s arrest:</p>
<blockquote class="twitter-tweet" lang="en"> <p lang="en" dir="ltr">Martin Shkreli&#8217;s bail was going to be set at $500,000 but they raised it to $27,500,000 just for him.</p>&mdash; Kelsey D. Atherton (@AthertonKD) <a href="https://twitter.com/AthertonKD/status/677472478743175168">December 17, 2015</a> </blockquote><p></p>
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