London: Touring the City

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Tulsi Joshi

Finally, we’re in London! Although I can’t believe that we’ve reached the final destination in our trip, I’m really excited to be in a city that I’ve heard so much about. To commemorate our time in this global city, I don’t think there could have been a better experience than our walking tour through “The City” – the financial district of London.

We began our tour at the Monument, which symbolizes the Fire of London that destroyed 80% of the city in 1666. Although devastating, the fire provided a clean slate to rebuild London and provided the foundation for the modern city we know today. A Plague outbreak in 1665 along with the 1666 fire caused a drastic population decrease, which attracted large numbers of immigrants to London and the population was back to normal by 1670. This population increase was fostered by the River Thames, which was critical to London’s development as a financial center. As we took in the view of the river, it was easy to see just how vital it was to shaping the city and its existence. The Thames was easy to travel, reliable (especially weather wise) and fed directly into Europe’s main continent as well as other important rivers, such as the Rheine.

Coming more into colonial times, we passed the headquarters of the East India Company, and grew from the center of British trade with India to raising armies to finally its the Indian colonization. The headquarters were located next to the old Lloyds building where the company initially began its valuation of ships. As we kept walking, we also passed another building that Lloyds had shifted to, and had a rustic bell. The bell would be rung regardless of good or bad news, and once everyone had assembled the news would be announced as to not give anyone an unfair advantage. Historically, this banking sector had been run and managed by the Jewish since this was the only industry they were allowed to establish a stronghold in as to not takeaway jobs from the native British. Eventually, they were persecuted because many of the British (including the King) owed them money, and expelled as to effectively erase these debts.

We finished our tour by visiting the Royal Exchange, which is where the first traders began to trade and did business. As the tour guide left us to marvel at the Royal Exchange and all that had taken place in that building since the late 1500s. I was mesmerized to be walking through the different periods of history and how they impacted London – it felt as if the whole tour was a living, breathing museum. Of all of the experiences thus far, I knew that my fellow classmates and I were the most intrigued and amazed by this walking tour. We heard so much about the Euro crisis and the reactions by the Bank of England, but I think this walking tour truly hit the concept home because we were able to see the beginnings of finance and trading in England, one of the most powerful economies in the Eurozone and the world. The walking tour was the most appropriate experience to conclude our trip as we were able to view the past, present, and foundation of England’s financial future.

London: Touring the City

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London: Bank of England

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Dong Won (Ellie) Sung

Finally, we are in London, most beautiful city in the world. It’s already our last destination in our central bank tour. The sight of London is totally different from Portugal and Germany. It is really developed and no one would disagree that London is a fabulous place.  Cold weather greeted us and we realized the arrival of another city in our journey. Upon our stay in London, we directly experience with the exchange rate of pound and struggled with the price. Our group had the opportunity to visit Bank of England and the building was so impressive. Inside of the building was also gorgeous, but sadly we were not allow to take a picture. There were lots of mosaic pattern on the floor in a hallway and lion symbols in the building. As we had a strict security check, we could see how serious it is.

Throughout the presentation, we learned about three big topics: macroprudential regulation, microprudential regulation and monetary policy in the bank of England from three speakers: Rhiannon Sowerbutts, Mattew Pegg and Christopher Hackworth. Firstly, macroprudential regulation is running of the financial system in a range of all the banks in UK. UK banks are highly connected each other than I expected and it usually leads cross-sectional risk in action. To overcome the risks, they split instruments into categories. Secondly, the microprudential policy is safety and soundness of individual bank. Regulatory organizations have developed rules to protect the consumer and to manage the crisis. Especially, there were various revisions in banking regulation after the financial crisis. The financial crisis proved the need for a new approach to financial regulation and there was a major change which is the advent of FPC(Financial Policy Committee). The FPC has contributed financial stability by reducing risks and supporting economy policy. Also, I could learn the importance of regulating monetary policy like interest rates that could greatly affect inflation. Eventually, the ultimate object of the bank of England is to promote the good of the people of UK by maintaining monetary and financial stability.

After the presentations, we were able to visit Bank of England Museum that shows the history of Bank of England. Not only they had ancient coins and original artwork for British banknotes that has been issuing over 300 years, the museum offered a rare chance to handle a real 13kg gold bar and it was special experience to me that I never had before. Furthermore, the museum displays historical books, documents, furniture, picture and photographs collection that recorded the Bank’s history. It was most well-displayed museum throughout our tour and I think it was a great chance to see the real historical evidence that shows the development of the Bank of England.

Overall, visiting bank of England was a wonderful experience and I couldn’t believe that it was already the last central bank in our tour and the fact made me sad. Throughout the central bank tour, I learned how differently the central banks operate within the different country and their importance function in their economy. Also, I had an unforgettable experience and left precious memory in London with our group.

London: Bank of England

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Lisbon: The Securities Exchange Commission of Portugal

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Oscar Olmos Jr

May 25, 2015, our study abroad group had the privilege to visit the Portuguese Securities Exchange Commission. Initially, this visit seemed rather unorthodox as our trip was to focus on the Central Banks of Europe. However, to our surprise, this was an extremely beneficial visit in understanding the reform of financial governance after the Financial Crisis.

During this visit, the S.E.C. discussed a variety of their roles, but there were three which really stuck out to be the most important that any institution could do for people investing within the European Market: their report audits, their financial literacy courses, and their financial instrument consumer protection. As I was learning about this I was simply in awe as I trade in my spare time, and knowing that there was an agency that protects its consumers I was just amazed by their high standards.

The S.E.C. offers a financial literacy course to the public in order both to increase the public’s understanding and capabilities, and to increase the total number of people who invest within the financial markets of both Europe and Portugal. In doing so, they hope to increase the total proportion of households which invest from their strikingly low ten percent rate to around 50 percent of the population. This will create a more efficient market for everyone. While promoting financial literacy is something that agencies should do, I was very impressed by their dedication.

While the S.E.C. generates a variety of audits, in particular I see their audit process of asset valuation relative to the many other things they do to be one of the most useful to consumers. Margarida M. Rosa clearly explained that by using appropriate and conservative measures for asset valuation there may be a clear division between the appropriate returns and speculated returns when investing in a firm. This would be seen as the company would then have to report more accurate figures for their total assets rather than a false number which may make the company seem to be in a better standing financially than it really is. Having this accurate representation of a company’s financial standing allows investors to make better decisions on which firm they would like to invest in if any. Furthermore, proper valuation also allows for a more transparent market for all consumers.

By making sure that the consumer is aware of the financial risks they may be undertaking, then an auditor may able to gauge whether or not that the financial instrument they are purchasing is suitable for them. This may be easily seen as they may find the instrument to be too aggressive for their strategy, or trading habits. Furthermore, the S.E.C. also constantly gauges the riskiness of these financial instruments to also help consumers be aware of what the maximum loss may be due the riskiness of the instrument. Often, many people assume that maximum loss is the total amount initially invested, but certain financial instruments may yield a negative by having the investor pay capital in addition to losing their initial investment. As the S.E.C. continues to protect people from unknowingly investing within highly risky financial instruments, they aid in the recovery of the market since the financial collapse.

Overall, as the days of our study abroad trip began to wind down and perhaps our group grew that much closer, but we also grew closer to the feelings a government can have for its people. Even as we left we knew that the idealism witnessed and heard within that room would continue not just in Portugal, but in all of Europe. All I really knew by the end of it was that the beauty of Portugal could only be matched by the inner beauty of its citizens and how kind they were even to us travelers. In the end Portugal was a country that none of us could really forget, but I will also remember the lessons I learned within the Securities Exchange commission about responsible financial regulation.

Lisbon: The Securities Exchange Commission of Portugal

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Lisbon: Fado

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Brittany Cline

Wow, so we are now exactly halfway through our trip and here we are in Lisbon, Portugal.  Lisbon is an incredible city full of beauty and culture.  The weather here is perfectly breezy too!  Today we walked all over the city and did some amazing site seeing so it was really nice to wind down our day with enjoying our first Fado.

First, I will back track a little bit to two months ago.  When Charles said that attending a Fado was the one mandatory event that we needed to attend during our free weekend in Lisbon, I can say that I was excited even though I was not entirely sure of what a Fado really was.  Charles described it as the Portuguese analogy to America’s blues music, but wow; it is so much more.

Fado really was an experience.  Let me explain.  To me, Fado felt like a type of music that really reaches the audience’s soul.  No one in our group speaks Portuguese, yet some of us were tapping our feet and bopping our heads to the music.  How can that be when we could not even fully understand the music?  I think it was due to the enthusiasm of the singers.  The singers were so engaging and passionate, which guided us to feel the depth behind the song even without knowing the lyrics.  The crowd interaction was great too.  From the captivating eye contact to arms reaching out to the audience, I felt the soul behind the music.

There were multiple rounds of singers so we had the option of staying relatively late into the night.  After each round, some people left and more people came inside.  The restaurant was so cozy so it was amazing to see so many people arrive and pack in tight to enjoy the music.  The Fado only consisted of one person singing, one person playing guitar, and another person playing an instrument similar to the guitar.  Together, this small group was able to finesse a beautifully cultured song that pleased the crowd each time.  I see Fado as a remarkable symbol of Portugal’s nationality.  What an amazing way to immerse ourselves in Portugal’s culture!  From the late evening dinner to the crowd packed restaurant to the sound of others speaking Portuguese in the background, I have to say that the Fado was an experience we will never forget.

Oh, and let me not fail to mention the mouth watering food that was served and the incredible service.  I think I speak for the entire group when I say that the amount of bread we devoured that night was incredible.  The warm bread, the delicious salmon, and the assortment of desserts really topped off the night!

Experiencing Fado really did bring our trip to Lisbon full circle.  It was a really nice way for us to bond as an entire group.  We are so grateful for the experience--to eat and to be entertained!

Lisbon: Fado

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Lisbon: Bank of Portugal and the Money Museum

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Iliana Gonzalez

Lisbon, Portugal is a city full of marvelous attractions and welcoming citizens. In addition to being a great place to tour and enjoy the vast beaches, it also home to the Bank of Portugal, one of the central banks of the Eurozone. Upon our stay in Lisbon, we were able to visit the Bank of Portugal and learn about the changes Portugal instituted to overcome the financial crisis that began in 2007.

Initially, Portugal was not affected by the crisis that hit the United States, however, as time progressed, and Greece’s deficit continued to escalate, Portugal became affected. In the spring of 2010, Portuguese banks entirely lost access to funding in international markets. Portugal’s economy went through a lack of growth during the crisis that led to an inability to reduce their deficit. As a result, Portugal’s deficit increased immensely, and it was forced to ask for help from the European Central Bank. With the money that Portugal received as a loan, it was able to recover from the crisis and turn their deficit into a surplus.

Among the changes in the Portuguese banking system were reforms that were implemented to increase potential growth, create jobs, and improve competitiveness. Furthermore, fiscal policies were implemented to increase revenues and reduce costs. The financial system was also greatly modified to ensure the bank had enough funds, to fund its operations and in case of emergencies, and there was increased monitoring and regulation to ensure everything was in place and running accordingly.

Overall, the visit to the Bank of Portugal was an enjoyable visit full of learning, and new experiences. Throughout the presentations, we were able to enjoy some exquisite Portuguese pastries that were extremely delicious. After the presentation concluded, we were able to visit the Money Museum that is also part of the Bank of Portugal. The museum has interesting history, as it was previously a church that was restored to become the money museum. The money museum features an exhibition that demonstrates the evolution of money that has left a historic mark in Portugal.

After the presentations and the visit to the Money Museum, we were treated to lunch at a very modern restaurant in the city, and given the chance to interact with the professionals of the Bank of Portugal in a more personal and relaxed setting. The lunch consisted of delicious, traditional Portuguese food. I was able to sit by Diana Bonfim and was able to learn about her experience with the Bank of Portugal and some aspects of her personal life.

Visiting Lisbon, Portugal, turned out to be a wonderful experience. One of things I found the most striking was how kind and generous the professionals from the Bank of Portugal were with us, and how much time they put into organizing a great visit for us. Undoubtedly, Lisbon was one of my favorite places to visit throughout our tour of the Central Banks, and I am definitely planning to return to such an amazing city!

Lisbon: Bank of Portugal and the Money Museum

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Frankfurt: European Central Bank

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Sarah Sykstus

It seemed as though the trips to both the Federal Reserve and the Bundesbank were just pit stops on the way to the ultimate destination that we were all looking forward to visit: the European Central Bank (ECB). Just the day before, we had visited Germany’s National Bank, the Bundesbank. It was the first time we had been able to receive a perspective completely different to what we were used to. It provided us with information regarding solely Germany’s economy, however, it gave us a necessary foundation for the trip to the ECB.

At 9 am we set foot in route to the ECB. We took the subway just like we taken the previous day. On the way to the subway, we passed by the old ECB, marked by the large euro mark with gold stars surrounded by it. I would like to think it was a sign that the day would be successful. The new ECB building was visible the moment we started to climb the stairs up from the subway. It was very sleek and modern on the outside, as it was all glass that shined bright in the morning sun. The moment we walked into the building we were all in awe. It was even more beautiful on the inside. Thus, it was necessary to stop and take pictures of the ground level floor. We even had to stop and take a group picture in front of the main display: all of the flags of the European Union (EU) surrounding a wall that has the words “European Central Bank” written in all of the languages specific to the nations representing the EU.

After all of the pictures were taken we were lead further into the beautiful building, past water features and into the glass elevators. One of the students in the group, Tulsi Joshi, told us that when we were in the elevator it felt like we were in the elevators of the ministry of magic, a ficticous place in the Harry Potter Series. Once we got off we were lead to a conference room where we had the pleasure of listening to two very respected economists that work for the ECB, Dr. Demosthenes Ioannou and Dr. Florian Helder. Dr. Ioannou and Dr. Helder first gave us background information regarding the basics of the Euro Area (the group of countries that use the euro currency). Then they proceeded to provide us with how the Euro Area looked before the crisis which transitioned to the crisis and the reasons they believed it happened. Dr. Helder stated that the crisis can be summed up in the following ratio: debt/GDP (the debt is individual debt by each person).

After they provided us with background information and have caught us up through the crisis, they talked to us about the measures that the ECB is taking in helping the European Economy. It was very interesting to listen to this because it proved to be different from the duties of the Federal Reserve. The ECB is still very young and does not have as much power because they are dealing with fully developed countries that each have their own policies in place while the Federal Reserve is on the federal level and thus can overrule state law.

The presentation was followed by a tour around the building. It was definitely one of the highlights of the trip thus far. The architecture is absolutely beautiful and can be described as both modern and early 20th century because it was integrated, quite perfectly I may add, to a historic landmark that has been around since the 1920’s. We were also lucky enough to have access to one of the top floors to look at a magical view over the city of Frankfurt. The final stop included a quick lunch and the chance to sit in their cafeteria with the other employees before we had left. Unfortunately, the time to leave the ECB came too quickly. I will forever be grateful that we had the chance to not only see the state of the art building but, to meet two of the most influential economic researchers in the world ; it was definitely a memorable day that I wish I could go back to!

Frankfurt: European Central Bank

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Frankfurt: Deutsche Bundesbank

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Viola

The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and since 1999 it has been part of the Eurosystem—the central banking system of the Euro area— sharing responsibility with the other original central banks and the European Central Bank (ECB) for the single common currency. The Bundesbank is independent of instruction from the Federal government. The Bundesbank uses this nationwide network to perform its operation in the area of refinancing, clash supply and banking supervision. Let me explicate. Banking supervision in Bundesbank, mainly monitoring and examining the health of banks to ensure that banking system is efficacious and stable. For Bundesbank, banking supervision does not straightly interfere in transaction conducted by banks, but entrench regulatory groundwork. In other words, banking supervision improves the quality of banking.

During our trip to Bundesbank’s central office in Frankfurt am Main, we know that the overall overriding aim behind all of the Bundesbank’s activities is to safeguard the stability of the general price level and the financial system. The Bundesbank’s stability policy also relies on the support of economic, wage and fiscal policies. In correlate with inflation as support to economy, a too continued period of low inflation rates will bring forth alternative instrument. The decline of the inflation rate is chiefly result of falling energy cost and commodity prices. In addition, Bundesbank expects the Eurozone economy to pick up, added that the bank also needed to contemplate the tractable mandate thus leading to an increase in inflation.

The recent financial chaos and its severe economic consequences founded a major challenge for central banks and banking supervisors around the world. As the publics believe, there are a very large number of opinions from which it is possible to go through such a complex phenomenon as the sovereign debt crisis. In our meeting with one of Bundesbank ‘s research group researcher Michael Scharnagl, his allusion against ECB’s potentially unlimited program to buy the government bonds of euro zone sovereigns is expansionary because such measures pay attention on the symptoms and don't cure the roots of the crisis. Moreover, in concern with economy’s growth, the bank’s priority, he pointed, is to create the necessary institutional framework and incentives through improvement of authority structures in some crisis countries, e.g. structures of banks’ activities, of employment in financial sector and of distinguishing credits between corporate and household. If banks were to fail, they would usually only insure the deposits and not the banks themselves.

Frankfurt: Deutsche Bundesbank

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Chicago: Federal Reserve Bank

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Joseph Song

May 18^th… The day we’ve all been eagerly anticipating since the conclusion of finals. Naturally I saved all of my packing for the night before we left so I was a little short on sleep during the initial stop of our trip, but it was still very enjoyable nonetheless. As for introductions my name is Joseph Song and I’m a rising senior majoring in finance. Allow me to kick things off by giving you guys a brief window into the first leg of our trip on this inaugural blog post:

Today we had the wonderful opportunity of visiting the Chicago Federal Reserve Bank. I’ve been somewhat aware of the Federal Reserve and its functions for quite some time now due to taking a variety of finance and economics classes but it was an entirely different experience to see it all in person. The building itself was very impressive and right from the get go one could tell that security was no joke. During this visit we had the opportunity to tour the facility and our tour guide—who was an absolute riot by the way—made this fact abundantly clear by pointing out numerous spots within the bank that used to house machine gun turrets. Before this trip, I’d never thought about the sheer magnitude of the amounts of money processed by the Reserve Banks on a daily basis; it was certainly a sight to behold. Jerry, our tour guide, casually tossed out figures left and right denoting exactly how much cash we were in the presence of.

In addition to receiving a tour, we also had the pleasure of listening to two speakers, David Marshall and Robert Stiegerwald. David Marshall spoke to us about the various roles the Fed fulfilled and its considerable influence on our nation’s economic and financial systems. It was very interesting to hear about the history behind the creation of the Fed—I had no idea that the original reasoning that led to us having 12 different reserve banks was due to mistrust of the East coast. Mr. Marshall also took the time to compare the balance sheets of a typical bank versus that of an industrial company, GM. This comparison served to convey the fact that banks are relatively fragile and illustrated where exactly the Fed fit into this equation. At the end of the day, the role of the Fed is to ensure that our financial system and growth of our economy is healthy.  Another point that I found interesting was that most of the marvelous financial innovations of today were born out of regulatory arbitrage. In other words, they were created due to financial engineers who had discovered loopholes within financial regulation.

Mr. Stiegerwald led us in a discussion about the various recent changes in banking regulation. The topics we covered ranged from specific titles with Dodd Frank, the overall complexity of the Fed, and systemically important financial institutions. One question that was raised as a direct result of this dialogue was whether or not tighter regulation of large banks actually resulted in a safer financial environment when taking into account the tradeoff which is increased shadow banking activity. Shadow banking can be defined as inherently non-financial institutions participating in activities such as making loans that we would commonly see only banks operating in. Additionally, it was fascinating to learn about how the Fed has evolved since the financial crisis in 2007.

All in all, our first stop at the Chicago Federal Reserve Bank was a fantastic way to kick off our tour of the European Central Banks. Moving forward, it will be intriguing to hear about how differently the banks operate throughout the different regions we’ll be visiting as we go on to the next steps within our trip. 

Chicago: Federal Reserve Bank

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Study Abroad Course: Central Banking since the Financial Crisis

This series of posts describes a study abroad course in which students visited several central banks and talked with central bankers about how they responded to—and sometimes failed to respond to—the global financial crisis, and how they are adjusting to their new roles.

by Charles Kahn, Bailey Memorial Chair Professor, Department of Finance, University of Illinois

The financial crisis changed everything. Before the dramatic events of 2007-8, most people believed that developed economies had solved the problems of guaranteeing financial and macroeconomic stability.

But then freezes of financial markets throughout the world and the failures of major banks and other financial institutions, led to a deep recession from which the world is only beginning to recover.

Nowhere was the fallout greater than in Europe. Just as the continent’s economies began to adjust to the new realities, Europe’s sovereign-debt crisis threatened the foundations of the most ambitious of all European projects: the common currency.

Central banks have the job of protecting currencies, financial systems and the macroeconomy. These jobs were regarded as routine before the financial crisis. Now many would say that they are impossible.

How have these organizations adjusted to their new challenges? That’s what we are finding out for ourselves. Our group is on a trip to meet with officials at four different central banks in Europe: the European Central Bank, the Bank of England, the German Bundesbank and the Bank of Portugal. We are learning first-hand how these institutions have changed as a result of the twin crises. We are comparing the situation in Europe with that in the United States, to learn how the institutions differ, and how these differences are related to the difference in underlying economic and political conditions.

We’ll report in these entries on what we’re learning, and also on our other activities during the trip, starting in Chicago, and then going on to Frankfurt, Lisbon and London.

Study Abroad Course: Central Banking since the Financial Crisis

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Renewable energy the focus of study abroad tour in Greece

Five University of Illinois students, funded in part by the European Union Center under a U.S. Department of Education Title VI grant, visited Greece this spring to learn about renewable energy. They explored the difference in EU and US approaches to environmental sustainability, and experienced the Greek economic crisis along the way. See below for the full press release.

URBANA - Five students from the University of Illinois spent a month in Greece this spring, studying renewable energy alongside students from the Agricultural University of Athens (AUA) and the University of Thessaly in Volos. Amy Girlich, Alex Heidtke, Grace Nelson, Rachael Ramsey, and Sarah Shimizu were part of a team-based collaboration that allowed students from both countries to experience the process of identifying and solving real-world engineering problems.

This is the third year Stephen Zahos, a lecturer and Senior Design Capstone Coordinator in the Department of Agricultural and Biological Engineering (ABE), has coordinated and led students in the “Cradle of Democracy” study and cultural tour.

“The students learned about various technologies in renewable energy systems such as biofuels, photovoltaics, wind energy, and solar energy, through field trips to installations, and via lectures and demonstrations at both AUA and Thessaly,” said Zahos. “This year we added a hands-on aspect to the trip. Students collected data at a university farm, using instruments that measured soil conductivity and other parameters. Then they used sophisticated software programs to produce three-dimensional plot plans of the ground that they covered.”

“The practical use of that in renewable energy was to maximize the growth of energy crops that are planted specifically for energy use,” Zahos continued. “In Greece’s case, it’s principally sunflower seeds, and other non-food crops, for biodiesel production.”
Because this trip occurred earlier in the year than the previous trips, the students in Greece were still in school and the U of I students were able to work closely with their counterparts.

“Spyros Fountas is an assistant professor at Thessaly, and he set up the program there,” said Zahos. “This wasn’t a typical experience for the students in Greece. They don’t get a lot of hands-on experience – they mostly attend lectures. But Spyros earned his Ph.D. at Purdue, so he was familiar with the American style of teaching and instruction. His students seemed to enjoy the alternative method as well.”

Zahos noted that the installation and application of renewable systems in Greece is guided by European Union directives, which sets goals for each of the member countries. Currently Greece uses approximately 9 percent renewable energy sources, but the goal is 20 percent by the year 2020. “It’s going to be difficult to reach,” said Zahos, “but progress is being made, as evidenced by several installations that popped up since 2010.”

Amy Girlich, a junior in civil and environmental engineering, said the experience was an excellent opportunity to learn more about her intended career path. “I’m looking to focus on environmental engineering and this was a great way to obtain some hands-on experience and learn about biodiesel and sustainability,” she said. “It was interesting to note that Europe and the United States view environmental concerns differently. Almost every house in Greece has a small solar panel on its roof. Many buildings have no air conditioning but instead are built using marble on the inside to keep the air cool. In the United States as a whole, we don’t think as much about what impact we have on the environment.”

“So often, students in a university setting, especially engineers, are spoken to only in terms of the technology – this is what it is, this is how it works,” Zahos said. “But the political, societal, and economic components are the 800-pound gorillas in the room.”
That’s why Zahos was pleased when students were able to attend a lecture by two U.S. Embassy personnel almost immediately on their arrival. “They gave a great talk on sustainability and spoke about all the components of renewable energy, acceptance, sustainability and operation,” he said. ”That provided the students with grounding and a framework for them to be thinking about.”

Zahos said another educational – albeit unintended – aspect of the trip was observing the current economic upheaval in Greece. “We happened to be there at the time their legislature was debating whether to accept the austerity measures required by the EU for a loan bailout,” he said. “I encouraged the students to pay attention and to think about some of the conditions that exist there, and compare and contrast them to what we’re possibly facing here in the States. It’s not good that it’s happening, but I knew the students could learn from the experience.”

The students lived together in an apartment in a typical Athens neighborhood, surrounded by markets, shops, restaurants and ordinary citizens. “They got plenty of exercise walking,” said Zahos, “and we made good use of the city’s well-developed public transportation system.”

Of course, a trip to the beautiful country of Greece has to include seeing the sites, and Zahos said the balance of work and play was about equal. “After travel time, we probably spent 12 days in classes and 12 days sightseeing.”

Sightseeing included a four-day bus trip to learn about the history of Greece, traversing the Samaria Gorge on the Island of Crete, and a one-day, three-island cruise near Athens. Katerina Kassimati, a young woman from Patras who had studied with the department of ABE the previous year, went on the cruise with the visiting students, and then welcomed them to her family’s summer home near Athens. The students spent a day touring the area and enjoyed a home-cooked meal prepared by the Kassimati family.

The five students took it on themselves to plan another excursion, a trip to Santorini for a weekend, which was “amazing,” said Grace Nelson, another junior in civil and environmental engineering. “There were so many memorable experiences in Greece, it’s hard to pick just one. We saw the ruins all over Greece, we saw black sand and red sand beaches, the sunset at Oia, and we met some awesome people at our hostel. This study abroad experience in Greece couldn’t have been better,” Nelson concluded. “I’ll remember it for the rest of my life.”

The students were even able to connect with Illinois alumni while in the country. The first meeting of the University of Illinois Club of Greece, started by a recent graduate, George Lokkas, who received his master’s in finance at Illinois, was held on the roof garden of the Athens Gate Hotel in full view of the Acropolis and Parthenon at night. Approximately 25 UIUC and UIC graduates, now living in Greece and other parts of Europe, attended the event. Zahos is proud charter member number 25.

Support for the program was provided in part by the Illinois European Union Center under a U.S. Department of Education Title VI grant, the Transatlantic Bioenergy Network, the Illinois College of ACES, the Department of Agricultural and Biological Engineering and the Illinois International Programs in Engineering office.

Renewable energy the focus of study abroad tour in Greece

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