Jul 26, 2009

Opposition Seeks Shift in Power as Iraqi Kurds Vote; High Turnout Reported

By Anthony Shadid
Washington Post Foreign Service
Sunday, July 26, 2009

SULAYMANIYAH, Iraq, July 25 -- An opposition party promising to break the grip of the two ruling parties in northern Iraq's autonomous Kurdish region made a surprisingly strong showing in elections Saturday that appeared certain to shift the region's political arithmetic, opposition and government officials said.

Officials stressed that the results were preliminary and that a more accurate picture might not emerge until Sunday or later. Final results, to be announced in Baghdad, could take a week. But as early returns came in late Saturday, dramatically different moods descended over the opposing camps' headquarters.

Opposition officials said they were outpolling the ruling parties 2 to 1 in some parts of the crucial battlefield of Sulaymaniyah. Government and opposition officials said the opposition also did unexpectedly well in the other key province of Irbil.

"Early results from some of the locations in Sulaymaniyah and some in Irbil are not good," said Barham Salih, a veteran politician who was the ruling parties' candidate for prime minister of the Kurdish region. "It's anxious moments. We will see."

Overall, Salih said, the early results were "surprising."

Voters were choosing a president and a 111-member parliament for the Kurdish region, which has a remarkable degree of independence from Baghdad and is widely seen as a success story in an otherwise turbulent country. Polls were kept open an extra hour across the region's three provinces, and the electoral commission, citing preliminary figures at a news conference in Irbil, said turnout was 78.5 percent.

More than 500 candidates were running for parliamentary seats. Massoud Barzani, the incumbent president and head of the Kurdistan Democratic Party, one of the two parties that have ruled the region for a generation, faced five challengers. In parliament, Barzani's list of candidates had agreed on a joint slate with the other ruling party, the Patriotic Union of Kurdistan, led by Iraqi President Jalal Talabani.

Hardly anyone here Saturday expected Barzani to lose the presidency, and the joint list still seemed likely to capture a majority in parliament. But it faced a spirited challenge by dissidents from Talabani's party running as the Change List, particularly in Sulaymaniyah. Many observers were watching how many seats Change won as a barometer of the ruling parties' staying power and the discontent they must now reckon with. More than 15 seats would be considered a victory for the opposition, analysts and officials said.

Late Saturday, the challengers appeared to be polling far better than that, in what was shaping up as a protest vote that crossed lines of class, party and clan.

"It will certainly change the political landscape in Kurdistan," said Hiwa Osman, an editor and former spokesman for Talabani. "However many seats Change gets, Kurdish politics have changed. It heralds a new era that's going to dictate its own logic."

Nosherwan Mustafa, a founder of Talabani's party and now the head of the Change List, added: "We don't want to change just the faces and the persons. We want to change the political system. We want to separate the political parties from public life."

The two parties have run the Kurdish region since former president Saddam Hussein withdrew Iraqi troops after the 1991 Persian Gulf War and a Kurdish uprising. They fought a bloody civil war in the decade that followed, reconciled and have ruled the region jointly since the U.S.-led invasion of 2003, despite lingering tensions.

Over those years, the parties hewed to a formula that exchanged political plurality for stability, bringing prosperity to the Kurdish region and turning Irbil, its capital, into a Middle Eastern boomtown. Success, though, came at a cost. Under a relentless sun Saturday, many voters accused the parties of an almost complete lack of accountability in the control they exerted over most aspects of life, from appointments to lowly government jobs to multibillion-dollar deals.

Corruption was rife, they said, and jobs were few.

The disenchantment has overshadowed the growing battle with the federal government in Baghdad over the disputed boundaries between Kurdish and Arab Iraq and a law on sharing oil revenue and management of the country's sprawling reserves.

"I want a better life," Shwan Khalid, a 60-year-old voting in Irbil, said simply.

Within the parties, there were signs of a growing sense that, even with an electoral victory Saturday, they must make their rule more transparent.

"This is truly a new phase in Kurdish politics," Salih said, as he left the polling station. "It shows that Kurdish politicians can no longer take their voters for granted."

After Arrest, Cambridge Reflects on Racial Rift

By Krissah Thompson and Cheryl W. Thompson
Washington Post Staff Writer
Sunday, July 26, 2009

CAMBRIDGE, Mass. -- The town where a white police officer and a black scholar ignited a national conversation on race and law enforcement has begun to open the dialogue that President Obama invited.

Before summer's end, the mayor, district attorney and police officials will convene a forum to grapple with the controversy over the arrest of Harvard University professor Henry Louis Gates Jr. by Sgt. James Crowley -- which exploded into a divisive debate that drew in the president.

Obama, who spoke to both men last week, called it a "teachable moment" for the nation on a "troubling aspect of our society." Gates said in an e-mail statement that he accepts Obama's invitation to begin talking and wants to work with the Cambridge Police Department. Crowley has not publicly responded to the invitation.

Residents of Gates's neighborhood, mostly upper-middle-class whites and a transient but diverse group of students in university housing, have begun pondering the meaning of the incident. Other questions also have emerged: What does it mean to have the nation's first black president involved? Will the discourse have lasting impact on the relationships between police and blacks and Latinos?

"It's disappointing," said Lawrence Neely, a 33-year-old doctoral student at Massachusetts Institute of Technology, who lives in a university-owned apartment building next-door to Gates's yellow wood-frame house. "We're in Cambridge, Massachusetts. We have an African American mayor. We have an African American governor. We have an African American president, and just looking at the situation strictly at face value -- without getting into who is right and who is wrong -- we are now having a conversation about the question of whether one of the most influential African American scholars in the country has been racially profiled. It all makes it clear that this is still a reality."

Although others have been critical of Obama's role, Neely, who is black, said he was glad that the president weighed in and hopes the conversation on race will not go back underground.

People in the neighborhood are friendly and speak to one another, Neely said, but he added that the horde of reporters and television cameras outside Gates's home in the days after the arrest served as a reminder that the deeper issues of race are still little discussed.

Much is known about Gates's arrest on the charge of disorderly conduct, which was later dropped, but the folks who live here acknowledge that the incident did not happen in a vacuum.

Demographically, Cambridge is a liberal college town of about 100,000 people -- 65 percent white, 11.5 percent black, 12 percent Asian and about 7 percent Hispanic. The divide between the intellectual university affiliates and the rest of the mostly working-class residents is "from time to time quite tense," said Priscilla McMillian, a civic activist and historian who is white.

Merritt Harrison, a 75-year-old white man who lives around the corner from Gates, said that he understands why the police feel defensive, but that he probably would have had the same reaction as Gates if a police officer had showed up at his home and suspected him of being a burglar.

"I'm white, so I probably wouldn't have been arrested," said the part-time Episcopalian pastor, real-estate agent and counselor who has called the community home for 25 years. "I don't know. Was it racial profiling? I don't think anyone will ever know. But plenty of people think it was. The thing to do is to use it as an occasion to look at the issue. People need to talk."

Orlando Patterson, a professor of sociology at Harvard who lives next-door to McMillian, said the moment provides an opening to look at "a real paradox persisting in the nation."

"You have a country that has pretty well come to accept blacks in the public domain: in politics, in the media, in sports, in religion," said Patterson, who is black. "But there is still persistent segregation and indeed some areas where there is not much progress, such as integration in the schools. There is a complete mismatch between the world of blacks in the public domain and the world of blacks in their personal relationships."

Patterson, author of "The Ordeal of Integration: Progress and Resentment in America's Racial Crisis," is convinced that race and class influenced the interaction between Gates and Crowley.

Not lost on Neely: The irony that all the research on race and socialization gathered in this academic town did not result in greater understanding. "The police officer made a judgment," he said. "Gates made a judgment. The challenge is the subjective assessments of one another."

'Moving From Fear'

In Cambridge this time last year, a young black man was removing a lock from a bike on campus when a Harvard police officer pulled a gun and demanded identification, according to a six-member committee report on the practices of the police department ordered by Harvard President Drew Faust. The youth showed the officer his Boston Public Library card, began crying and said he was a high school student working at the university. (Harvard police were also called to Gates's home.)

Such incidents have prompted Charles Ogletree to convene meetings of police and community members over the years. Ogletree is a Harvard law professor and Gates's attorney, and he is now helping to map out the citywide forum. Gates is going to participate, he said.

"The goal is for people to speak candidly and have the difficult conversation," he said. "The constant factor in all of this fear. Police fear that they are encountering a situation that is dangerous, and suspects fear that police don't care who they are and what they are doing. So, it is moving from fear to a sense of tolerance and a level of acceptance."

The Cambridge Police Department is gathering law enforcement and policing experts to study the case as it looks for its own lessons, said Commissioner Robert Haas, though he added that his own review found that race played no role in the arrest.

Law enforcement experts nationwide are watching as the city and the incident become an important, if imperfect, petri dish for discussing racial profiling.

"My suspicion is that this was not about race, this was about power," said Richard Weinblatt, director of the Institute for Public Safety at Central Ohio Technical College. "In the old days, we used to call this 'contempt of cop.' This person was charged with 'contempt of cop' because they kept pushing and pushing. But it has opened up a very powerful national dialogue on race, and it's something that police need to address."

In the 1990s, after high-profile cases such as the beating of Rodney King in Los Angeles and the fatal shooting of Amadou Diallo in New York, departments began requiring officers to document whom they stopped as a way of monitoring their work. Others beefed up cultural diversity training, formed partnerships with the community and, more recently, began using video cameras and other technology to record interactions.

"I'm not saying racial profiling doesn't exist, but I don't think we get as many complaints as we did 10 or 20 years ago," said Atlanta Police Chief Richard Pennington, adding that what happened to Gates was not a case of racial profiling because Crowley received a call of a possible crime in progress. "It's not like he was walking through the neighborhood, saw Gates and demanded to see his identification. That's racial profiling."

Gates wrote in a 1995 New Yorker magazine article: "Blacks -- in particular, black men -- swap their experiences of police encounters like war stories."

Saturday, he said in an e-mail statement: "I have spent my entire career as an academic attempting to bridge differences and promote understanding among all Americans. To that end, I have pledged to do all that I can to help us learn from this unfortunate incident. This could and should be a profound teaching moment in the history of race relations in America. I sincerely hope that the Cambridge police department will choose to work with me toward that goal."

Research editor Alice Crites contributed to this report.

Digital Nomads Ditch Cubicles for Shared Spaces, Choosing Their Co-Workers

By Michael S. Rosenwald
Washington Post Staff Writer
Sunday, July 26, 2009

Frank Gruber's workstation at AOL in Dulles could be in any cubicle farm from here to Bangalore -- push-pin board for reminders, computer on Formica desk, stifling fluorescent lighting. It's so drab there's nothing more to say about it, which is why the odds of finding Gruber there are slim.

Instead, Gruber often works at Tryst in Adams Morgan, at Liberty Tavern in Clarendon, at a Starbucks, in hotel lobbies, at the Library of Congress, on the Bolt Bus to New York or, as he did last week, beside the rooftop pool of the Hilton on Embassy Row. Gruber and Web entrepreneur Jen Consalvo turned up late one morning, opened their Mac laptops, connected to WiFi and began working. A few feet away, the pool's water shimmered like hand-blown glass.

"I like the breeze," Consalvo said, working all the while.

Gruber and Consalvo are digital nomads. They work -- clad in shorts, T-shirts and sandals -- wherever they find a wireless Web connection to reach their colleagues via instant messaging, Twitter, Facebook, e-mail and occasionally by voice on their iPhones or Skype. As digital nomads, experts say, they represent a natural evolution in teleworking. The Internet let millions of wired people work from home; now, with widespread WiFi, many have cut the wires and left home (or the dreary office) to work where they please -- and especially around other people, even total strangers.

For nomads, the benefits are both primitive and practical.

Primitive: Tom Folkes, an artificial intelligence programmer, worked last week at the Java Shack in Arlington County because he's "an extrovert working on introvert tasks. If I'm working at home by myself, I am really hating life. I need people." He has a coffee shop rotation. "I spread my business around."

Practical: Marilyn Moysey, an Ezenia employee who sells virtual collaboration software, often works at Panera Bread near her home in Alexandria even though she has an office in the "boondocks." Why? "Because there is no hope for the road system around here," she said. Asked where her co-workers were, Moysey said, "I don't know, because it doesn't matter anymore."

Nomad life is already evolving. Nomads who want the feel of working with officemates have begun co-working in public places or at the homes of strangers. They work laptop-by-laptop in living rooms and coffee shops, exchanging both idle chitchat and business advice with people who all work for different companies. The gatherings are called jellies, after a bowl of jelly beans the creators were eating when they came up with the name.

Although the number of digital nomads is intrinsically difficult to measure -- they are constantly in motion and difficult to pin down for polling -- evidence of a real shift in where Americans work is mounting. Dell reports that its digital nomad Web site is getting tens of thousands of hits a month. Panera, a popular spot for people working wirelessly, logs 1.5 million WiFi sessions a month.

One only needs to visit Tryst, a popular coffeehouse on 18th Street NW, to see dozens of people spending money on food and drinks in exchange for the privilege of setting up a day office at a table there. Cafe owners love the trend. "If there was nobody in here, people would say 'That place is no good,' " said Dale Roberts, who owns the Java Shack. "It feeds on itself. If you go to a movie theater and see a long line, people want to see that movie. It's the same thing for a coffee shop."

One of the inalienable rights of digital nomads is starting their workday well after many of their colleagues out at the cubicle farm have spent hours preparing for and getting to their workstations. Last week, Gruber edged into his workweek from home at 9:15 a.m., posting to his Twitter page, "It's Monday, another busy week ahead!" Twenty-two minutes later, he posted a picture of his breakfast: two eggs, sunny side up. They looked delicious, not a single crack in the yolk. It wasn't until about 11 that Gruber, a 31-year-old product strategist for AOL, arrived at the Hilton pool with Consalvo, his business partner.

She used to work for AOL -- during the stock option boom, she owned a boat she named Options -- but now the 37-year-old is creating a Web startup with Gruber called Shiny Heart Ventures. By lunchtime, they posted a picture of the pool to Flickr with the caption, "Thank you, technology and other shiny objects that make working anywhere a breeze!"

Definition of shiny objects: their equipment. Between the two of them, they travel with more than $10,000 in gear. They lug laptops, iPhones, back-up hard drives, power supplies and too many USB adapters to tally. "We are like good little Boy Scouts and Girl Scouts -- always prepared," Consalvo said.

Gruber worked on AOL products, including the company's instant messaging system. He and Consalvo also chatted about coding for their Web site, dealt with contractors and sent lots of e-mail. When Consalvo won a small victory, hooking someone important to work on a project with her, she feted herself by dipping her feet in the pool. The only stress all day was a weird mix of music piped in to entertain poolgoers. Frank Sinatra followed by Beyoncé does not constitute optimal working conditions.

Consalvo's father, a Maine lobster fisherman, is skeptical that lolling by the pool can constitute a workday. "I don't think he thinks that any of this work is real," Consalvo said. "But why wouldn't you work this way if you could?"

The attraction of working poolside is obvious, but why would an employer let workers pick venues that shout leisure rather than productivity? "It's a win-win," said Mary Barnes, Gruber's boss at AOL, in an instant message chat. "Frank is happy doing what he loves and from a business perspective, we gain valuable industry knowledge, contacts and insights." Barnes works closely with Gruber to measure his contributions, and both expect to see ever more nomads: "The younger workforce will demand it. That's how they live."

Carsten Sorensen, a London School of Economics professor who studies nomads, said people working away from an office often feel pressure to work harder to protect their freedom. This can make working as a nomad "both heaven and hell," he said, even leading to burnout.

At Buzz Bakery in Alexandria last week, half a dozen people assembled for a jelly organized by Lacey Hopkins, a technical writer. She started co-working once a week after working alone at home left her strangely tired at day's end. "Extroverted people like me get their energy from other people," she said.

Sitting across from her was Chris Charbonneau, who founded a company called Joey Totes, which sells reusable shopping bags. "Working at home, you don't get to have the office environment and meet people," he said. "From a business perspective, there's some great opportunities out there. You're gonna meet a lot of people who can really help you out." He's gotten valuable marketing advice from people he's met at jellies.

Slightly more formal co-working centers have opened across the country, including Affinity Lab in office space above the Diner in Adams Morgan. Ads on the wall at Tryst offer space to the fully-evolved nomad who doesn't want a formal office but still wants a community of people to swap ideas with -- and a fax machine. Members pay $235 a month to work in a communal room -- no desk included -- or $575 for a desk. Users include designers, software startup entrepreneurs, nonprofit group staffers and an importer of Chilean wine.

Gruber and Consalvo intend to remain "location-independent" throughout their work lives. "In real estate, the emphasis is always put on 'location, location, location!' and thanks to ever-evolving technology, we can now be productive from almost any location," they wrote on their Web site. "And while we understand that there is no place like home, we like to think we have many homes -- the primary one being the World Wide Web."

The Leaner Baby Boomer Economy

Mercedes is the quintessential boomer brand. Drive down an American highway, and odds are good that the person piloting the Benz in the next lane was born between 1946 and 1962. And Mercedes-Benz (DAI) has prospered right along with America's huge postwar generation. Back in 1986, when the first baby boomers turned 40, Mercedes sold 99,000 cars in the U.S. In 2006, when those boomers hit 60, the automaker moved almost 250,000 vehicles, a fifth of its global total.

This year, Mercedes will sell a third fewer cars in America. In Montvale, N.J., Kristi Steinberg, who runs Benz's North American market research operation, has a nagging fear: that sales won't recover for a long time because boomers, history's wealthiest generation, are tapped out. "I don't know if anyone knows yet if this is a blip," she says, "or a defining moment like the Great Depression."

Executives such as Steinberg always knew boomers would curb their free-spending ways as they approached retirement. But not in their most nightmarish imaginings could they have predicted that an economic maelstrom would cripple the customers they have courted and counted on for 30 years.

FAITH IN RISING MARKETS

When 79 million people—nearly a third of Americans—start spending less and saving more, you know it won't be pretty. According to consulting firm McKinsey, boomers' conversion to thrift could stifle the economy's hoped-for rebound and knock U.S. growth down from the 3.2% it has averaged since 1965 to 2.4% over the next 30 years. "We would have gotten here in 5 or 10 years as boomers retire, but we pushed it up," says Michael Sinoway, managing director of consulting firm AlixPartners. "Now [companies] are scared things won't come back." And that's why everyone from Mercedes to Nordstrom (JWN) to designer Vera Wang are scrambling to remake themselves for the Incredible Shrinking Boomer Economy.

Not so long ago, boomers were never going to die. Filled with a self-confidence born of unprecedented prosperity, many thought rising markets would assure their future. If the economy faltered, well, it would rebound more strongly than ever, as it had so many times before. And so boomers spent—and borrowed—as if there were no tomorrow.

Meet Tim Woodhouse, 56. He owns Hood Sailmakers in Middletown, R.I., a business that helped finance a plush life. Woodhouse owns a boat, five Ducati motorcycles, and every few years treated himself to a new Porsche 911. He figured he'd retire when he felt like it. Then the markets crashed, the economy tanked, and suddenly Woodhouse felt a lot poorer. In April, with business slowing and his real estate holdings leaking value, Woodhouse hit the brakes. "I was scared," he says. "My net worth took a real hit." Woodhouse sold the Porsche and bought a Mini Cooper. The boat spends more time tied up these days than out on the water. He and his wife dine out less often, and they don't entertain at home much either.

Woodhouse and millions of boomers like him are doing what people normally do when they near retirement: They're living more frugally. Companies have long factored in this actuarial reality, gradually tweaking their products and marketing to appeal to the next generation. With boomers, however, many companies became complacent. It wasn't that they ignored younger consumers but that they counted on boomers to keep spending longer. And why not? Until recently boomers typically reached their spending peak at age 54, according to McKinsey. Contrast that with the previous generation—a thriftier bunch whose consumption typically peaked at 47.

Now many companies are scrambling to appeal to Generations X and Y. You can already see this thrust in the stores. Clothing designer Vera Wang is selling a casual line called Lavender aimed at twenty- and thirtysomethings. It's fashion, but not the pricey garments the company typically has sold. Meanwhile, says Wang, her namesake brand needs to get a lot less expensive. In one instance, Wang made a high-end dress using fabric that costs $5 a yard instead of $12 but used the fabric in several layers to give the garment a richer look. As a boomer herself, Wang, 60, feels her generation's pain. You don't have 30 years to reinvent yourself," she says.

Even as Mercedes continues to target boomers, it has quietly recruited 500 people aged 20 to 32 for a focus group it calls Generation Benz. Mercedes researchers are seeking their views on the economy, car ads, model designs, and more. The automaker sent 20 Generation Benzers into dealerships wearing flip-flops and other casual attire to see how much attention they received. Four of the 20 were ignored. The results, says Steve Cannon, vice-president for marketing, served as a wake-up call to Mercedes dealers "that we have to start paying a lot more attention to tomorrow's customers, especially if tomorrow is coming faster than we thought."

VALUE SHOPPING

Can younger consumers pick up the slack? Consider the demographics. Generation X, Americans born between 1964 and 1980, is generally estimated to be about two-thirds the size of the boomer cohort. And with boomers working longer, especially since the crash wiped out many retirement funds, it may take longer for Xers to move into their prime earning (and spending) years. And what about Generation Y, the 81 million-strong group born between 1981 and 1994? Right now, 14% are unemployed and will have their own hole to claw out of when the economy revives, according to Edward F. Stuart, who teaches economics at Northeastern Illinois University. In other words, companies will need boomers for years to come.

The trick will be finding a way to fulfill the needs and wants of a generation that is used to being catered to—but is now on a budget. Timothy Malefyt, an anthropologist who studies consumer trends for the ad agency BBDO New York (OMC), argues that boomers, having ridden a wave of technological change, are highly adaptable and well versed in problem-solving. (Or at least they see themselves as such.) Already, he says, they are making a virtue of value shopping, once viewed by this group as hopelessly déclassé. For many boomers it's no longer about keeping up with the Joneses, it's about outthinking them. "If you make boomers feel they've failed, you'll lose them," Malefyt says. "They want to feel they've outsmarted the system or their circumstances."

That's why some companies are coalescing around "cheap chic," a marketing conceit that has become synonymous with Target (TGT) but also has been tried by the likes of JetBlue, Ikea, and Mini. The latter is owned by BMW, another classic boomer brand. BMW didn't plan it this way, but the Mini is one solution for a company whose cars are becoming too pricey for many boomers. A fully loaded BMW 3 Series costs $40,000 plus change; a comparably equipped Mini: $25,000. The Mini, while a feat of engineering and retro style, can't compete with a BMW, which the company bills as "the ultimate driving machine." But the Mini possesses cheap chic in spades. In recent months, says BMW, fiftysomethings have been trading in their Bimmers and other luxury brands for Minis.

PAMPERING ON A BUDGET

Starwood Hotels & Resorts Worldwide (HOT) has embarked on a crash course in cheap chic—or what it prefers to call "style at a steal." The chain has long appealed to the boomer yen for luxury and pampering. Its high-end W, Sheraton, and Westin hotels offer spacious rooms, well-staffed front desks, valets, and extensive room service menus. So the polyester sheets and small-bar soap that typify the value hotel experience wouldn't do. Starwood's 40-year-old chief of specialty brands, Brian McGuinness, also knew boomers grew up challenging convention and still like to feel that they're on the cutting edge. But they also demand creature comforts. "They once drove Beetles and ended up in Bimmers," McGuinness says. "We wanted to strike that balance." Plus, don't tell them but boomers are getting older and presumably creakier. So edgy can't equal bare-bones minimalism.

After six months of research and brainstorming, Starwood came up with two cheap chic hotel chains: Aloft, named to echo the "urban cool" of loft apartments, and Element, a low-cost option aimed at people who prefer suites with every "element" of their daily lives—including spa-like bathrooms. Early last year the team mocked up an Aloft prototype and invited some boomer-age guests to stay. The mock hotel had an aggressive neon color palette, piped-in scents reminiscent of an Indian spice market, and garage band tunes on the sound system. To help bring the room rate down to the $150-to-$170 range, they cut out full-service restaurants, room service, and valets. The test subjects were fine with parking their own cars, and most said they'd rather explore and find their own restaurants than eat in their rooms. The garage music? Not so much. Starwood replaced it with contemporary rock and international music. The neon palette gave way to muted tones, and a mild citrus replaced the spice.

Starwood has opened 25 Aloft hotels so far, and McGuinness says occupancy rates meet or exceed the average in most metro markets. Starwood won't say if the downturn prompted it to accelerate the rollout of its new hotel brands. But the company is opening two Aloft hotels each month, the fastest rate the industry has seen. David Loeb, a Robert W. Baird analyst who has been covering the hotel industry for years, says Aloft's ambience may be too hip and jarring for fiftysomethings. But he says if the chain finds the right balance, it might appeal to boomers and Generations X and Y. Starwood is advertising the new chains heavily online. "Boomers and Gen Y congregate in the same places on the Web," McGuinness says.

Starwood started changing its approach to boomers before the economy went south. Other companies are adjusting on the fly. OSI Restaurant Partners has watched its eateries lose boomer customers, whether middle-class types who frequented the company's Outback Steakhouse and Bonefish Grill restaurants or wealthier people who once dined on filet mignon at the more upscale Fleming's Prime Steakhouse & Wine Bar. OSI's chief operating officer, Paul E. Avery, reduced menu prices and offered smaller cuts of beef at Outback to maintain margins before retiring in early July. The company has gone on an ad blitz pushing the more modest portions for $9.99. This is obviously a tricky balancing act at Outback, where a big slab of meat was the chain's main attraction.

The good news, says Chief Branding Officer Jody Bilney, is that people who order the less expensive entrées typically end up buying dessert or more alcohol, so the average ticket is still about $19 per person. At Fleming's, OSI is offering more wines under $10 a glass and a fixed-price menu that caps everything but drinks as low as $36 a person. Before the downturn diners typically spent $60 apiece. OSI is responding to a recession but is prepared to run its business this way if boomers remain frugal over the long run. "If anyone tells you they know that the impact of the last 12 months is permanent or temporary, they're blowing smoke," Bilney says.

Nordstrom isn't waiting to find out. The purveyor of affordable fashion believes that its customers—many of them boomers—will be under pressure for years to come. So even as it starts building fewer full-price department stores, Nordstrom has tripled the pace for opening lower-priced Nordstrom Rack stores. It will open 13 in 2009 and nine next year. Rack stores offer Nordstrom's usual name brands but for 30% to 70% less than they fetch in the main stores. Nordstrom figures boomers still want fashion, but at a discount.

What many companies are attempting to do now has worked in the past. After the crash of 1929 few people could afford a Cadillac, so General Motors (GM) created a budget model to keep its luxury sales going. The 1934 LaSalle had art deco touches, including chrome portholes along the hood. To cut costs, GM stuck the car on an Oldsmobile chassis and gave it a smaller engine. The LaSalle's cheap chic was a hit with Depression-era drivers, and when the economy recovered, Cadillac again became a totem of material success. Of course, America was about to experience the greatest boom in history. That's unlikely to happen this time.

With David Kiley

Welch is BusinessWeek's Detroit bureau chief.

Jul 25, 2009

The Islamic Republic’s Failed Quest for the Spotless City by Azam Khatam

Azam Khatam

(Azam Khatam is an urban sociologist, a member of the Iran Sociological Association and a member of the editorial board of Goft-o-gu.)

A bathroom sign at Persepolis. Contrary to myth, the Islamic Republic mandates only that women wear a manteau and headscarf, not the chador. (Axel Schmidt)

It is characteristic of modern social revolutions to seek moral improvement of the population, as well as redress of the injustices of the ancien regime. In 1794, Paris echoed with calls to “righteousness”; in 1917, the Bolsheviks denounced the bourgeois decadence of the czarist era. For Ayatollah Ruhollah Khomeini and other clerical leaders, the Islamic Revolution of 1979 was not only a seizure of political power, but also the moment of revival of Islamic morality, which had been systematically weakened by the secular Pahlavi regime. The clerics set out to build in Iran “a spotless society.”[1]

Since its inception, the Islamic Republic has labored tirelessly to indoctrinate society with a state-sponsored Islamic ethical vision, through the education system, state-owned broadcast media, propaganda films known as “holy defense cinema” and a host of coercive measures. In 1980, the regime infamously launched a “cultural revolution” aimed at intellectual elites, closing the universities for three years, and reopening them only after extensive purges of the faculty, administration and student body.

But the lives of ordinary Iranians have been far more deeply affected by a parallel project, based on the Qur’anic verse “commanding what is just and forbidding what is wrong” (amr-e be ma‘ruf va nahy-e az monkar), a basic tenet of Islamic jurisprudence and a moral obligation for every Muslim. In most times and places in Islamic history, this formulation has been akin to the concept of “personal responsibility” propagated by social conservatives in the contemporary United States—an exhortation to industry, propriety and clean living that is, in the end, up to the individual to heed or ignore. Under the Islamic Republic, it was to be up to the state. For two decades, a special morality police rigidly enforced “Islamic” codes of behavior in the streets, workplaces and parks of Iranian cities.

By the end of the 1990s, it was clear that the morality police had lost its power to intimidate. Increasingly youthful and educated, Iranians came to make a clear distinction between Muslim religious identity and the claim that Islam is a basis for an alternative social and political order. And they would simply decide for themselves what was pious personal behavior and what was not. Sights that once incurred the wrath of the virtue squads—forelocks poking out from under women’s headscarves, satellite dishes and weekend parties of young friends—were now regarded as ordinary aspects of life, especially in big cities like Tehran. Women, in particular, kept expanding the definition of the ordinary by dint of their actions, working outside the home, exercising in parks, walking the streets in colorful dress and running businesses in the male preserve of the bazaar.[2] Young people were not necessarily becoming secular. The same man might have a taste for Western music and for innovative hymns of mourning for the martyrdom of Imam Husayn; the same woman might have a keen interest in fashion and believe in a religious duty to cover her hair. Youth turned the occasion of Ashoura, when Shi‘i Muslims commemorate the death of Husayn, into a mix of sacred ritual with provocative fashion, flirting and a festival atmosphere.

Conservative hardliners were resentful of the slippage in enforcement of their puritanical standards, a slippage they regarded as a betrayal of the revolution as well as an offense against Islam. Their presidential candidate in 2005, Mahmoud Ahmadinejad, ran what has been called a campaign of “stealthy radicalism,” pledging to restore moral rectitude by example and not by force. Once he was elected, of course, he cracked down. But the children of the revolution no longer fear or respect the cultural code that Ahmadinejad seeks to reimpose—and, indeed, they have defied it.

Revolutionary Piety

In April 1979, Khomeini ordered the Revolutionary Council to create a morality bureau (dayereh amr-e be ma‘ruf) that would uproot corrupt pre-revolutionary cultural habits. Initially, this bureau may have held some populist appeal, in that Khomeini hinted it would be a people’s watchdog in the corridors of power. In a May 1979 speech, the ayatollah said: “The morality bureau will be independent of the state, so as to monitor it, and no one, not even the highest authorities, will be exempt from its supervision.”[3] Indeed, Article 8 of the Islamic Republic’s constitution refers to amr-e be ma‘ruf—the shorthand term for public morality—as a key basis of social relations and a mutual obligation of ordinary citizens and government. In practice, enforcement of amr-e be ma‘ruf has been directed overwhelmingly at the citizenry—and in particular at women.

A morality police unit was established in Tehran in 1979. One of its first acts was to demolish the old red-light district of Tehran, removing 2,700 prostitutes.[4] In the ensuing months, thousands of people were arrested for such “moral crimes” as extra-marital sexual relationships, alcohol consumption, gambling and pederasty, and hundreds were executed. More liberal Revolutionary Council members objected to the excesses, as well as the unaccountability of the morality bureau to the Council, and the Revolutionary Court briefly disbanded the bureau, citing unauthorized arrests and confiscation of personal wealth. The bureau was resurrected in 1981, this time as a special court for prosecuting cases of “prohibited activities.” In the same year, the Islamic Republic mandated that women wear modest “Islamic” attire. (Contrary to persistent myth, the law in Iran has never required women to don the full chador, though they are strongly encouraged to do so. In practice, “Islamic” attire has meant a variety of manners of dress, typically a manteau covering the arms and a headscarf. The chador is enforced, however, in mosques, judiciary buildings and other public spaces, including on some university campuses.)

At first, the power of the morality court was absolute. Then, in 1982, the first Islamic penal law was ratified by Parliament. The law codified the prohibition of “non-Islamic” dress for women. Article 102 declared that women dressed “improperly” in public would receive up to 74 lashes, a penalty only softened in 1996, when it was changed to jail time or a fine. This clause of the penal law remains the only legal instrument for implementing amr-e be ma‘ruf. With codification, the bureaucratic state sought not only to restrain judicial autonomy, but also to construct an Islamic identity through threat of sanction. In the 1980s, the state promoted a culture of self-sacrifice and obedience, and any resistance on the part of women to strictures upon dress was treated as counter-revolutionary treason. Even as the Iran-Iraq war raged, prominent conservative figures took the line that the struggle over moral issues should not take a back seat.[5] Authoritarian enforcement of amr-e be ma‘ruf created what Roxanne Varzi has called a “public secret,”[6] by which many urbanites hid their “non-Islamic” beliefs and habits at home, while appearing to be properly Islamic in public.

The Post-War Era

Authorities begin a nationwide program to enforce “Islamic” dress codes, Tehran, April 23, 2007. (document IRAN/Mohammad Berno)

In the late 1980s, morality policing entered a second phase with the formation of a new state “headquarters” (setad) for enforcing amr-e be ma‘ruf and the return of thousands of Basiji (voluntary militia) activists from the war front. The Basij, initially created to shield the Islamic Republic from internal security threats, was now assigned the role of ensuring that Islamic ethics were observed. Basiji checkpoints in the streets gradually turned to the task of imposing Islamic codes, peaking in 1993, when Ayatollah Ali Khamenei, Khomeini’s successor as Supreme Leader, espied a “cultural invasion” of Western, secular and counter-revolutionary influences. The state-owned press put the number of Basijis thus engaged at anywhere from 230,000 to 3.5 million.[7]

The target population was no longer the secular Iranians who had criticized the revolution in the 1980s, but the masses of urban middle-class youth who were born and raised under the Islamic Republic, and had supposedly eaten and breathed nothing but revolutionary Islamic ideals. Patrolling setad units harassed, humiliated and arrested young men and women in streets, workplaces, universities and other public places, accusing them of moral misconduct.

Meanwhile, the face of the capital was changing under Gholamhossein Karbaschi, the mayor from 1989 to 1998. In the first half of the 1990s, Tehran witnessed an explosion of new construction, financed partly by the municipality, which levied steep new taxes on commercial developers, and partly by the developers, for whose benefit the city bent zoning laws.[8] The number of parks doubled, and 74 new cultural centers appeared in less than five years.[9] Meanwhile, the proliferation of shopping malls reflected the decline of revolutionary fervor, with its collective ideals, as individual consumerism took root. Eventually, the new urban policy became the focal point of a confrontation between the “reformist” figures associated with President Mohammad Khatami and traditional conservatives. Mayor Karbaschi’s Hamshahri, the most popular newspaper at the time, endorsed Khatami’s presidential run in 1997. The next year, he was tried and imprisoned on corruption charges related to the methods behind Tehran’s urban renewal.

But the modernization and revitalization of Tehran’s public spaces reflected powerful desires among city residents, desires that also hindered the implementation of amr-e be ma‘ruf. The post-revolutionary technocratic elite, for instance, having made fortunes through political connections, wanted to indulge in conspicuous consumption. The generation of youths that had grown up under the Islamic Republic were highly frustrated by the limits imposed by scarce resources and exclusive policies upon their life chances. They understood the policies as an effort to marginalize those who were insufficiently “Islamic.” Public opinion on cultural values began to fragment. The families of war martyrs, who tended to be of humbler origins, supported the fight to safeguard the moral promise of the revolution as well as their protected access to state-sponsored privileges. Meanwhile, the modern middle classes were eager to make a clean break with the “republic of piety.”

The extension of setad activities into government offices and the provinces intensified official disagreements. Conservatives, raising the specter of cultural invasion, accused the more pragmatic Khatami camp of being indifferent to the ethical promise of the revolution. They mounted attacks in the press on Karbaschi’s cultural centers in Tehran.

As minister of culture and Islamc guidance in 1992, Khatami ratified the Principles of Cultural Policy, which became the reformist charter for cultural reform. The charter advocates relatively tolerant policies and refers not at all to amr-e be ma‘ruf. On the contrary, it calls for government institutions to restrict the selective imposition of severe religious views upon the public, for fear of negative social consequences. In 1999, an Islamic institute at Tehran University sponsoring research on amr-e be ma‘ruf proposed that “the political system should avoid imposing on people too much ideological pressure, too many restrictive codes and too much propaganda based on religious principles.”[10]

The ascendancy of the reformist bloc in Parliament, and the associated intellectual and cultural ferment, effectively ended the second stage of moral policing in the name of amr-e be ma‘ruf. From 1996 to 2005 the Basij checkpoints were fewer and further between, and the government told the setad it lacked legal authority for its indiscriminate patrols.[11] Setad authorities also lost their control over believers in faraway cities. The discourse of “cultural invasion” through communications technology and mass media was replaced by Khatami’s talk of the “dialogue of civilizations.” People expressed their will for cultural change through street celebrations, starting with the victory of the national soccer team over Australia in the 1997 World Cup qualifying match. These celebrations were a cultural turning point, since such “non-Islamic” emotions of jubilation had not been expressed in public since the revolution.”

Yet the hardliners did not simply acquiesce in their marginalization. Renegade “operational teams” of the setad meted out “Islamic punishment,” as with the serial killings of women accused of being prostitutes in Mashhad and Kerman in 2002 and 2003.

The New Puritanism

In 2003, even as many conservatives in Parliament dropped revolutionary-era rhetoric in recognition that Iranian society has changed, the hardliners consolidated themselves in a coalition of more than 18 groups, some of which had been active since the 1990s, and others of which were new associations organized by clerics and officials. Although the coalition had ties to traditional conservatives in the bazaar and among clergy in Qom and Tehran, it aimed primarily to give voice to the less privileged among Islamist ranks, including the radicals marginalized under Khatami and the urban low-income strata.[12] The hardliners turned amr-e be ma‘ruf into a mobilizing slogan for radical Islamist forces as the reformists’ moment waned. Later, they used amr-e be ma‘ruf to gain leverage in their political conflicts with reformists and even more pragmatic conservatives.

Conservatives took over Tehran’s city council in 2003, Parliament in 2004 and the presidency in 2005. From their first move back into power, they upped the volume of their demands for aggressive policies to control public life, directing harsh criticisms at the laxity of the reformists to prepare society for the coming retrenchment in cultural policies. The judiciary announced another initiative to create a force responsible for policing “moral crimes” in November 2004. Committees answering the force’s national command were to be formed in each mosque, neighborhood, factory, school and government office, with the task of implementing amr-e be ma‘ruf. Several clergymen, including teachers in the Qom seminaries responsible for training judges since the revolution, mildly protested the idea of placing such a body under judicial supervision.[13] Independent lawyers also pointed to the clear conflict of interest, as well as the lack of parliamentary approval for the plan.[14]

As the 2005 presidential campaign got underway, the leader of the hardline coalition, Ahmadinejad, promised his followers a new age of economic justice and Islamic piety. The two components of his populist platform were harmonious, even if they aimed at different political targets. With his denunciations of corruption and promises to put the fruits of oil wealth on the humblest of dinner tables, Ahmadinejad cast himself in subtle, but clear opposition to Islamist power brokers such as former President Ali Akbar Hashemi-Rafsanjani, a founder of the Islamic Republic who wound up as his rival in the presidential runoff. At the same time, he stoked resentment of the reformists among the more ideological sectors of his base, such as war martyrs’ families and Basiji families, by decrying reformist disregard for amr-e be ma‘ruf and vowing as well to crack down on conspicuous consumption. The 2005 presidential election was the first since the revolution in which candidates felt compelled to declaim a “mild” position on veiling. Wary of being labeled a fundamentalist, Ahmadinejad promised that he would not “interfere with the choice of hairstyle of young people.” But after he won, and all the branches of government were back in conservative hands, the conservatives resumed attempts to discipline public behavior with the language of amr-e be ma‘ruf.

In May 2005, Tehran’s conservative city council called in the police commander and blasted him for excessive tolerance of “inappropriately veiled” women in public. A few days later, special morality patrols reappeared in the streets, for the first time employing women officers.[15] In August of that year, the arch-conservative newspaper Keyhan demanded that the government step up its efforts to enforce amr-e be ma‘ruf: “Why do secular states expend such great effort to protect their youth from moral decadence while our Islamic state is painfully indifferent and silent toward the degradation of ethics among our youth?”[16]

The same month, the city council ratified a document called “Strategies to Extend Piety,” mandating still more bureaucratic organs, including a coordination committee drawn from various ministries and executive bodies, that would cooperate with police to punish violators of “moral codes.” By the spring of 2006, the morality police were once again ubiquitous, arresting or intimidating young women and men for their dress and conduct, confiscating satellite dishes and punishing shopkeepers who were selling “inappropriate” articles of clothing. At the same time, several cultural institutes formed during the reformist period were closed. Others were severely restricted; the budgets of cultural centers in Tehran were cut by half, while more funding was provided to religious institutions.

Within the conservative coalition, there were disagreements over amr-e be ma‘ruf. The director of the parliamentary cultural commission mounted what he called a “fundamentalist critique of fundamentalism,” pointing to the inefficacy of past attempts to police morality. Another conservative said enforcement efforts should be “soft, not hard.” As conservative intellectuals left the coalition in protest of the morality campaign, more power accrued to the radicals.

In the spring of 2007, the most extreme conservatives in the Tehran courts designed a “public safety program” (tarh-e amniat-e ejtema‘e) aimed at allaying public fears about increased consumption of drugs, thuggish behavior among youth, rape and burglary—but also at enforcing amr-e be ma‘ruf. As it was nominally a normal anti-crime initiative, the program was assigned to the regular municipal police by the president. The move was in keeping with Ahmadinejad’s “stealthy radicalism” during the campaign, for he sought to assure Tehranis that the regular police, not the notorious Basij, would be the enforcers. As a police commander told the Fars News Agency, “We didn’t use Basij forces, because we assumed there would be more resistance from the people.”

The Basij, however, criticized police for their “mild” methods. By August, the Basij had been invited to take over operations targeting drug dealers and gangs of robbers. Basij commanders, embedded in the state bureaucracy, used the chance to proclaim themselves the saviors of political stability of the Islamic Republic in the cities. They inveighed against a “cultural NATO” and a “conspiracy of foreign forces” seeking to overthrow the Islamic Republic through the propagation of “non-Islamic” behavior among youth and women. The mix of cooperation and competition between the Basij and police ended in a kind of military occupation of cities in the spring of 2008. Patrols criss-crossed each of Tehran’s 23 main thoroughfares, where confrontations between police and citizens over “moral issues” were a daily occurrence.

The fresh campaign was vicious in its treatment of young people dressed in “non-Islamic” fashion and its harassment of alleged arazel va obash, a derogatory phrase meaning drug dealers, addicts and thieves. In the first four months, nearly 1 million people were publicly humiliated, or “instructed,” in the streets and 40,000 were arrested. Of those detained in 2007, 85 percent were youths aged 16 to 26, and 10 percent were accused drug dealers and thieves, 35 of whom were executed within a month of their arrest. Reports on the program’s progress were released to the press as a warning to all. Investigative reporters revealed that an “instruction” center for addicts in Kahrizak, on the southern fringe of Tehran, was turned into a temporary prison, where “criminals” were severely tortured for one or two months, without trial, to terrorize them prior to their release.

This new puritanism disguised as a “public safety program” lifted the most fanatical elements of the hardline conservative firmament to the commanding heights of cultural policymaking in the Islamic Republic, and turned amr-e be ma‘ruf into a major challenge for the government, at a time when it already faces crises in economic and international policy. Human rights lawyers and activist women started a round of protests against the “public safety program” in 2007. The feminist website Meydan Zanan took the initiative, publishing news of street demonstrations, human rights activities and government debates on the issue. At the same time 20 independent lawyers filed a complaint against police with the highest court with jurisdiction over government agencies, claiming that the “public safety program” is illegal because it is not included in routine police tasks and it lacks parliamentary sanction. One year later, the court rendered its verdict that “there is no sanction or legal requirement” for the “public safety program.” In the summer of 2008, the main independent student organization, Tahkim Vahdat, initiated a series of public meetings on “violations of human rights by the public safety program” in Tehran and other cities. In most of these activities, there was reference to principles of human rights and the protections of personal freedom outlined in the constitution.[17]

In late January 2009, the new minister of interior and the deputy police commander suggested that the “public safety program” violates the citizenship rights of the people.[18] Regular police patrols have decreased markedly in the streets of the capital. At the same time, Basij commanders and others among the arch-conservatives dream of institutionalizing the agencies enforcing amr-e be ma‘ruf as a separate ministry[19] and of making amr-e be ma‘ruf the basis of the penal system. Already, toward the end of 2008, the Basij had declared that its enforcement activities would intensify in redress of the “retreat” of the municipal police.[20] The failure of the “public safety program” is another piece of evidence for the proposition that present-day Iran is de facto a post-Islamist society, a place “where, following a phase of experimentation, the appeal, energy and sources of legitimacy of Islamism get exhausted even among its once ardent supporters.”[21] During the 2005 presidential campaign, Elahe Kolaei, spokeswoman for the reformist candidate Mostafa Moin, referred passingly to his opposition to mandatory veiling. In January 2009, the Coalition of Nationalist Religious Parties, a collection of liberals and social democrats with active “Islamist feminists” among its members, has published a statement calling for the “remedy of discrimination everywhere” and asking that obligatory veiling be abandoned. This is the first time since the consolidation of the Islamic Republic that a political party has taken this step. The events of early 2009 mark both the end of the third phase of the attempts of the state to impose amr-e be ma‘ruf upon an increasingly recalcitrant population and an unprecedented degree of political fragmentation within the power centers of the Islamic Republic.

Endnotes


[1] Keyhan, December 12, 1981.

[2] See Asef Bayat, “A Women’s Non-Movement: What It Means To Be a Woman Activist in an Islamic State,” Comparative Studies of South Asia, Africa and the Middle East 27/1 (2007).

[3] Ettelaat, April 4, 1979.

[4] Ettelaat, February 20, 1980.

[5] Ettelaat, April 21, 1986.

[6] Roxanne Varzi, Warring Souls (Durham, NC: Duke University Press, 2000).

[7] The lower number appeared in Keyhan, November 11, 1995, and the higher number in Ettelaat, February 5, 1997.

[8] For details, see Kaveh Ehsani, “Municipal Matters: The Urbanization of Consciousness and Political Change in Tehran,” Middle East Report 212 (Fall 1999).

[9] Yas-e No, November 22, 2003.

[10] Jahad Daneshgahi, A Study on the Conditions of Revitalization of the Tradition of “Commanding the Just and Forbidding the Wrong,” (1999), p. 138. [Persian]

[11] Sharq, September 8, 2003.

[12] See Mohammad Maljoo, “Political Economy of the Rise of Ahmadinejad’s Government,” Goft-o-gu 49 (August 2007). [Persian]

[13] See, for example, Laila Asadi, “On Legal Aspects of Veiling in Iran,” a paper published by the research section of the Hozeh Elmieh Qom, and accessible online at http://www.porsojoo.com/fa/node/73527. [Persian]

[14] Aftab Yazd, December 12, 2004.

[15] Hamehan, June 14, 2005.

[16] Keyhan, August 14, 2005.

[17] For more on the protest campaign, see the Meydan Zanan website at http://meydaan.org/campaign.aspx?cid=55. [Persian]

[18] Etemad, January 29, 2009.

[19] Iran, February 5, 2009.

[20] Etemad, December 16, 2008.

[21] See Asef Bayat, “What Is Post-Islamism?” ISIM Review 16 (Autumn 2005).

'Girl Taxi' Service Offers Haven to Beirut's Women

BEIRUT -- In Beirut, you don't hail a cab, it hails you, with a raucous honk. The city's ubiquitous, banged-up Mercedes-Benz taxis -- with their hissing engines, torn upholstery and smoking drivers -- are icons in Lebanon.

Pink Taxis Hit Lebanon Streets

A pink taxi car service, for women and by women, is seeing great success in Beirut, Lebanon. As WSJ's Don Duncan reports, some women feel safer in the pretty pink cars.

But these days the city's transport staple is facing some serious competition from a growing army of female taxi drivers, dressed in stiff-collared white shirts, dark shades, pink ties and small pink flowers tucked into their flawlessly coiffed hair.

All of them drive for Banet Taxi, or "girl taxi" in Arabic. It is Lebanon's first cab service for women, by women. You can't miss the company's signature candy-pink cars.

"I chose pink because the first idea that comes to mind when you see pink is girls," says Nawal Fakhri, 45 years old, founder of Banet Taxi.

Ms. Fakhri cut her teeth in business running a pink- and pastel-hued beauty salon in east Beirut. The aesthetic legacy of that experience is clear in her current venture.

She launched Banet Taxi in March with just three cars and three drivers. Her fleet of late-model Peugeots has grown five-fold since then with enough drivers to provide 24-hour service. She is hoping to double her fleet this summer, to 24 cars.

The company is part of a regional trend. Entrepreneurs across the Middle East have recognized the business potential in offering secure transportation options for women. Banet Taxi follows on the heels of successful women-only transportation models in Dubai, Tehran and Cairo.

In Beirut, the growing company is a sign the private sector is succeeding where the politically volatile public sector fails.

"I like being one of the few female taxi drivers in Lebanon," says Maya Buhaidai, 34, as she takes a sharp turn on a windy road in the mountains overlooking Beirut. "And I like the work. It's easy, it's fun and I get to talk and laugh with my passengers."

As the sun sets, Ms. Buhaidai drives passenger Lamia Samaha, 37, from a suburb on the mountain slope to the busy central Beirut district of Hamra. Along the way, they chat about the news, TV shows and children.

"I am at ease because I am accompanied by a woman. I sometimes find men hard to handle," says Ms. Samaha, causing her and her driver to laugh heartily.

But, as with many of the pink fleet's passengers, Ms. Samaha is also serious about her choice.

"One of my daughters is 15 years old and I send her in this taxi all the time, especially at night ... and not have to worry."

It is the promise of a safe and uneventful ride that attracts a wide range of female passengers: older women who want a quiet drive, young women out partying until late at night, and even preschoolers put in the cars by their teachers.

Passengers' reasons for choosing Banet are based, in part, on their cultural and religious backgrounds. Beirut's population breaks down roughly into thirds, Christian, Sunni and Shiite. Conservative Muslim women might take Banet Taxi to accommodate rules against traveling with unknown men. Others just want to put comfort and safety first.

"I studied Lebanese society well and my first customer is the Lebanese woman," says Ms. Fakhri. "I am well aware that I could be making a lot more money with this if I also accepted male customers, but to me it is clear that in Lebanon, women need a service like this."

Lebanon has no shortage of women who are skittish about taking regular taxis. Reporting of sexual harassment remains low in a country with much taboo surrounding abuse and victimhood.

Yasmine Hajjar, a 23-year-old student in Beirut, says most of her female friends have a story about being harassed in a taxi. In one extreme example, she says she narrowly escaped being abducted by a taxi driver when she was 15 years old -- by pulling out her knife and holding it to the driver's throat.

"I think the pink taxis are a good thing," says Ms. Hajjar. "It's the safest way to go."

Banet Taxi is positioned to reap the benefits of the summer tourist season, an estimated $1.7 billion industry, with about 30% of revenues coming from conservative Muslim visitors from Gulf states.

Once the summer bump in business is over, Ms. Fakhri expects demand for her fleet to remain as strong as it has been in her first quarter of business. That will put her on target to bring in at least $200,000 in sales for 2009 -- a full return on her initial investment, she says.

Pittsburgh Scrubs Up for Visit From the G-20

PITTSBURGH -- Perched atop Mount Washington, with its prime view of downtown, is the long-shuttered Edge Restaurant, a graffiti-covered building that has been empty for 30 years.

Pittsburgh Mayor Luke Ravenstahl, third from right, conducts the first of five G-20 sweeps around the David L. Lawrence Convention Center in preparation for September's summit. Cleanup efforts, which began in May, have already succeeded in removing 40 tons of trash from the banks of three rivers.

A neighborhood nuisance visible from downtown, the structure threatens to be a citywide embarrassment in late September, when finance ministers and their entourages from the Group of 20 nations arrive for a global summit. That is why the city plans to hide the eyesore under a drape and has enlisted the Andy Warhol Museum for ideas to dress up the disguise. Options include projecting faces of residents and famous people onto the covering, or painting on an image of the hotel proposed for the site.

With thousands of international visitors expected for the summit -- and advance workers coming to scope out the city -- Pittsburgh officials are frantically trying to get the city ready for the spotlight.

On Thursday, Mayor Luke Ravenstahl conducted the first of five G-20 sweeps, a late-morning walk along streets in the downtown cultural district during which he noted broken sidewalks and paint-chipped light posts and fire hydrants.

"This graffiti is pretty bad on this block," the 29-year-old mayor told Kevin Quigley, head of the city's Redd Up Crew -- named for a local phrase meaning "clean up." The 18-person crew received a list of "action items" from the first sweep. Among them: power-washing garbage cans and alleyways, renovating curbs and removing dead trees from what is known as the Priority Area, the zone around the David L. Lawrence Convention Center, where the summit will be held.

Cleanup efforts have been in full swing since May, when the Obama administration tapped Pittsburgh as summit host. Already, 40 tons of trash -- including tires, shopping carts and mattresses -- have been picked up from the banks of the city's three rivers. The biggest find was a concrete truck, found submerged near downtown, said Don Bialosky, of the Pennsylvania Department of Environmental Protection, who helped coordinate a one-day cleanup event in June.

The city's G-20 spending is expected to total between $10 million and $20 million, including the cost for about 3,000 security personnel to supplement the city's 900 police officers. City officials are hoping for White House help. "We're very confident that the federal government is going to assist us in these costs," said Joanna Doven, the mayor's press secretary.

Pittsburgh's finances have been overseen by a state board since 2003, when it was declared financially distressed. The mayor is trying to raise revenue to shore up pension-fund shortfalls by leasing parking garages or raising payroll taxes on nonprofits.

The local economy could recoup some of that investment as an estimated 5,000 to 10,000 people -- including international delegations, journalists, security personnel and summit protesters -- fill local hotels and restaurants.

Joe McGrath, chief executive of VisitPittsburgh, the city's tourism bureau, expects the summit will generate about $8 million to $10 million, based on previous events in the city. Already, an hour south of the city, the five-star Nemacolin Woodlands Resort, which has trap shooting, a wildlife center with lions, leopards and zebras, and its own airstrip, said its 335 rooms, ranging from $300 to $650 a night, are booked for the two days of the summit.

Officials at Pittsburgh International Airport say they can accommodate increased traffic, given the abundance of unused gates since US Airways dropped Pittsburgh as a hub in 2004. The airport handles 157 flights a day, down from more than 600 in 2000. A nearby county airport is expected to handle many private jets.

Andy Masich, president and CEO of the Sen. John Heinz History Center, the largest history museum in the state, thinks the airport can use a few additions, and is recruiting actors to portray famous area natives such as Fred Rogers, Andrew Carnegie and Jonas Salk to greet G-20 dignitaries and media.

"We thought it would be good to make the point that Pittsburgh has changed the world over the last 250 years," said Mr. Masich. A history center robot might also translate the local dialect to visitors, explaining, for example, that "yinz" means "you" when spoken by a Pittsburgher.

Other proposals are in the works, some drawn from three public brainstorming meetings sponsored by the city. Some of the more conventional ideas -- flying flags of G-20 countries downtown and hanging welcome signs on streets -- are being considered. One that probably won't float: having delegates bring water from every G-20 country to dump into a downtown fountain.

Write to Kris Maher at kris.maher@wsj.com