Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world (data from 2010 says there are 40 emerging markets). The economies of China and India are considered to be the largest. According to ''The Economist'' many people find the term outdated, but no new term has yet to gain much traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.

The ASEAN–China Free Trade Area, launched on January 1, 2010, is the largest regional emerging market in the world.

Terminology

In the 1970s, "less economically developed countries" (LEDCs) was the common term for markets that were less "developed" (by objective or subjective measures) than the developed countries such as the United States, Western Europe, and Japan. These markets were supposed to provide greater potential for profit, but also more risk from various factors. This term was felt by some to be not positive enough so the ''emerging market'' label was born. This term is misleading in that there is no guarantee that a country will move from "less developed" to "more developed"; although that is the general trend in the world, countries can also move from "more developed" to "less developed".

Originally brought into fashion in the 1980s by then World Bank economist Antoine van Agtmael, the term is sometimes loosely used as a replacement for ''emerging economies'', but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength; such countries are considered to be in a transitional phase between developing and developed status. Examples of emerging markets include Indonesia, Iran, some countries of Latin America, some countries in Southeast Asia, most countries in Eastern Europe, Russia, some countries in the Middle East, and parts of Africa. Emphasizing the fluid nature of the category, political scientist Ian Bremmer defines an emerging market as "a country where politics matters at least as much as economics to the markets".

The research on emerging markets is diffused within management literature. While researchers including C. K. Prahalad, George Haley, Hernando de Soto, Usha Haley, and several professors from Harvard Business School and Yale School of Management have described activity in countries such as India and China, how a market emerges is little understood.

In the 2008 Emerging Economy Report, the Center for Knowledge Societies defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." It appears that emerging markets lie at the intersection of non-traditional user behavior, the rise of new user groups and community adoption of products and services, and innovations in product technologies and platforms.

The term "rapidly developing economies" is being used to denote emerging markets such as The United Arab Emirates, Chile and Malaysia that are undergoing rapid growth.

In recent years, new terms have emerged to describe the largest developing countries such as BRIC that stands for Brazil, Russia, India, and China, along with ''BRICET'' (BRIC + Eastern Europe and Turkey), ''BRICS'' (BRIC + South Africa), ''BRICM'' (BRIC + Mexico) , ''BRICK'' (BRIC + South Korea), Next Eleven (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, and Vietnam) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa). These countries do not share any common agenda, but some experts believe that they are enjoying an increasing role in the world economy and on political platforms.

It is difficult to make an exact list of emerging (or developed) markets; the best guides tend to be investment information sources like ISI Emerging Markets and ''The Economist'' or market index makers (such as Morgan Stanley Capital International). These sources are well-informed, but the nature of investment information sources leads to two potential problems. One is an element of historicity; markets may be maintained in an index for continuity, even if the countries have since developed past the emerging market phase. Possible examples of this are South Korea and Taiwan. A second is the simplification inherent in making an index; small countries, or countries with limited market liquidity are often not considered, with their larger neighbours considered an appropriate stand-in.

In an Opalesque.TV video, hedge fund manager Jonathan Binder discusses the current and future relevance of the term "emerging markets" in the financial world. Binder says that in the future investors will not necessarily think of the traditional classifications of "G10" (or G7) versus "emerging markets". Instead, people should look at the world as countries that are fiscally responsible and countries that are not. Whether that country is in Europe or in South America should make no difference, making the traditional "blocs" of categorization irrelevant.

The ''Big Emerging Market'' (BEM) economies are (alphabetically ordered): Brazil, China, Egypt, India, Indonesia, Mexico, Philippines, Poland, Russia, South Africa, South Korea and Turkey.

Newly industrialized countries are emerging markets whose economies have not yet reached first world status but have, in a macroeconomic sense, outpaced their developing counterparts.

Individual investors can invest in emerging markets either through ADRs (American depositor Receipts - stocks of foreign companies that trade on US stock exchanges) or through exchange traded funds (exchange traded funds or ETFs hold basket of stocks). The exchange traded funds can be focused on a particular country (e.g., China, India) or region (e.g., Asia-Pacific, Latin America).

FTSE list

The FTSE Group distinguishes between Advanced and Secondary Emerging markets on the basis of their national income and the development of their market infrastructure. The Advanced Emerging markets are classified as such because they are upper middle income GNI countries with advanced market infrastructures or high income GNI countries with lesser developed market infrastructures.

The Advanced Emerging markets are: {|border=0 | | | | | |- | | | |

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The Secondary Emerging markets include some upper middle, lower middle and one high income GNI countries with reasonable market infrastructures and significant size and some upper middle income GNI countries with lesser developed market infrastructures. The secondary emerging markets are: {| | | | | |

|- | | | | | |- | | | |}

MSCI list

As of May 2010, MSCI Barra classified the following 21 countries as emerging markets:

{| |- valign=top | | | |}

The list tracked by ''The Economist'' is the same, except with Hong Kong, Singapore and Saudi Arabia included (MSCI classifies the first two as developed markets and the third one as a frontier market).

S&P list

As of 31 December 2010, Standard and Poor's classified the following 19 countries as emerging markets:

{| |- valign=top | | | |} The , , and are currently under review for being upgraded to the status of emerging market by S&P.

Dow Jones list

As of May 2010, Dow Jones classified the following 35 countries as emerging markets: {| |- valign=top | | | |

| |}

Frontier Strategy Group (F10) list

In July of 2011, Frontier Strategy Group released the F-10, a list of the top 10 emerging markets Western multinational senior executives at Fortune 500 companies are tracking globally.

Six major emerging economies

According to World Bank issued at May 2011, BRIC countries plus South Korea and Indonesia will lead the world's economy with more than a half of all global growth by 2025.

See also

Next Eleven

Emerging market debt

Pre-emerging markets

Developed market

Frontier markets

North-South divide

Emerging Markets Index

Tehran Stock Exchange

Emerging and Growth-Leading Economies

References

Investment Issues in Emerging Markets - Research Foundation of CFA Institute

Sources

Goldman Sachs Paper No.134 BRIMC CIVETS countries - Colombia Official Investment Portal

Michael Pettis, ''The Volatility Machine: Emerging Economies and the Threat of Financial Collapse'' (2001) ISBN 0-19-514330-2

Julien Vercueil, ''Les pays émergents. Brésil Russie Inde Chine... mutations économiques et nouveaux défis ('Emerging Countries. Brazil Russia India China... : economic transformations and new challenges', in French)''. Paris : Bréal, 2010, 207 p. ISBN 978-2-7495-0957-0

External links

What Are Emerging Markets? University of Iowa Center for International Finance and Development

Emerging Markets Review Emerging Markets: A Review of Business and Legal Issues

Emerging Markets & Hedge Funds Hedge Fund Strategy - Emerging Markets Fund

Emerging Market Economies, Global Trade Imbalances, and the U.S. Dollar, Q&A with Pieter Bottelier (Johns-Hopkins-SAIS) on emerging markets and global imbalances

Antoine Van Agtmael speaker biography and session description for the 2009 World Business Forum where Agtmael leads a panel discussion on Emerging Markets

Emerging markets: leading the way to recovery Grant Thornton International Business Report

Winning in Emerging Markets: Five Key Supply Chain Capabilities by Edgar E. Blanco. MIT Center for Transportation & Logistics.

Emerging Money Education, trading analysis, and comprehensive views of global emerging markets.

How multinationals and local companies can win in emerging markets

Category:Business terms Category:Country classifications Category:Economic development Category:Investment Category:Lists of countries

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Birthname	Timothy James Pawlenty
Order	39th
Office	Governor of Minnesota
Lieutenant	Carol Molnau
Term start	January 6, 2003
Term end	January 3, 2011
Predecessor	Jesse Ventura
Successor	Mark Dayton
Office2	Majority Leader of the Minnesota House of Representatives
Governor2	Jesse Ventura
Term start2	January 3, 1999
Term end2	January 3, 2003
Predecessor2	Ted Winter
Successor2	Erik Paulsen
Office3	Member of the Minnesota House of Representativesfrom District 38B
Term start3	January 3, 1993
Term end3	January 3, 2003
Predecessor3	Art Seaberg
Successor3	Lynn Wardlow
Birth date	November 27, 1960
Birth place	Saint Paul, Minnesota, U.S.
Party	Republican Party
Spouse	Mary Anderson
Children	AnnaMara
Alma mater	University of Minnesota
Profession	Lawyer
Religion	Baptist / Evangelical
Signature	Tim Pawlenty signature.svg }}

Timothy James "Tim" Pawlenty (born November 27, 1960), also known affectionately among supporters as T-Paw, is an American politician who served as the 39th Governor of Minnesota (2003–2011). He was a Republican candidate for President of the United States in the 2012 election from May to August 2011. He previously served in the Minnesota House of Representatives (1993–2003) where he served two terms as majority leader.

Pawlenty was born in Saint Paul, Minnesota and raised in nearby South St. Paul. He graduated from University of Minnesota with a B.A. in political science and earned a J.D. from the University of Minnesota Law School. His early career included working as a labor law attorney and the vice president of a software company. After settling in the city of Eagan with his wife, Pawlenty was appointed to the city's Planning Commission and was elected to the Eagan City Council at the age of 28. He won a seat as a state representative in 1992, representing District 38B in suburban Dakota County. He was re-elected four times, and voted majority leader by House Republicans in 1998.

After winning a narrow Republican primary in 2002, Pawlenty won a three-way election for Governor of Minnesota, and he was re-elected in 2006 by a margin of one percent. His campaign platform focused on balancing the budget without raising taxes. During Pawlenty's governorship, he eliminated his state's budget deficit using spending cuts and borrowing heavily from earmarked funds. Pawlenty did not raise income taxes during his governorship, but did enact targeted increases in sales tax and user fees. His administration advocated for numerous public works projects, including work on the Northstar Commuter Rail Line, and the construction of Target Field, a Major League Baseball stadium in Minneapolis. He signed a bill mandating 20% ethanol in gasoline by 2013. He cut health care spending to help balance the budget, and signed an executive order rejecting federal funds related to the Patient Protection and Affordable Care Act. He led worldwide trips for business leaders and trade delegations to explore trade opportunities. In the 2007–2008 term he served as chairman of the National Governors Association.

Pawlenty was rumored as a contender for president as early as 2005, and was closely involved with U.S. Senator John McCain's presidential campaign in 2008. Pawlenty began early steps toward a run in late 2009. He formally announced his presidential campaign in May 2011, running on a strongly conservative platform. A day after coming in third place in the August 13, 2011 Ames Straw Poll, Governor Pawlenty announced that he was withdrawing from the race.

Early life and career

Pawlenty was born in Saint Paul, Minnesota, the son of Virginia Frances (née Oldenburg) and Eugene Joseph Pawlenty, who drove a milk truck. Pawlenty's father was Polish American and his mother was German American. His mother died of cancer when he was 16. Pawlenty grew up in nearby South St. Paul, where he played ice hockey on his high school's junior varsity squad, the South Saint Paul Packers.

Originally planning to become a dentist, Pawlenty enrolled in the University of Minnesota, becoming the only one of his siblings to attend college. During the summers of 1980 and 1982, he worked as an intern at the office of U.S. Senator David Durenberger. In 1983, he graduated with a B.A. in political science. He went on to receive his Juris Doctor from the University of Minnesota Law School in 1986. While in law school, he met his future wife, Mary Anderson. They married in 1987.

Pawlenty first worked as a labor law attorney at the firm Rider Bennett (later Rider, Bennett, Egan & Arundel), where he had interned during law school. Later, he became vice president of a software company, Wizmo Inc.

Now settled in Eagan, Minnesota, a suburb of Minneapolis – Saint Paul, Pawlenty was appointed to the city's Planning Commission by then Mayor Vic Ellison. A year later, at the age of 28, he was elected to a term on the City Council.

Pawlenty got his start in state politics in 1990 as a campaign advisor for Jon Grunseth's losing bid for Minnesota governor. After Pawlenty himself became governor, he appointed Grunseth's former wife, Vicky Tigwell, to the board of the Minneapolis−Saint Paul International Airport, which became an ethics and accountability issue in 2003.

Minnesota House of Representatives

Pawlenty was elected to the Minnesota House of Representatives in 1992, winning 49.1 percent of the vote in District 38B (suburban Dakota County). In the House he authored bills instituting term limits for committee chairmen, funding for infant parenting classes, minimum sentences for repeat domestic violence offenders, and community notification for sex offenders. In response to a state budget surplus he advocated for a tax reduction rather than expanded education funding. He was reelected four times and was chosen House Majority Leader when the Republicans became the majority party in the State Legislature in 1998.

Governorship

Election, 2002

In 2002, Pawlenty wanted to run for governor, but party leaders made it clear that they favored businessman Brian Sullivan for that office. Pawlenty shifted his sights to the U.S. Senate but he abandoned those plans when Vice President Dick Cheney asked him to step aside to allow former St. Paul mayor Norm Coleman to challenge Senator Paul Wellstone without Republican primary opposition. Pawlenty reasserted his original gubernatorial ambition and won a hard-fought and very narrow victory over Sullivan in the Republican party primary election.

In the general election, Pawlenty faced two strong opponents. His main rival was veteran Democratic–Farmer–Labor (DFL) state senator Roger Moe. Former Democratic Congressman Tim Penny ran on the Independence Party ticket. Up until mid-October 2002, the three were essentially tied in the polls. Pawlenty's major campaign stances included: a pledge not to raise taxes to balance the state's budget deficit (while allowing for increases in license and user fees); that visa expiration dates be required to be printed on driver's licenses; that women seeking an abortion be required to wait at least 24 hours; enactment of a concealed carry gun law; and reform of the state's education requirements. Pawlenty won the election with 43.8 percent of the vote. His largest gains after the October three-way tie were reportedly among voters in the suburbs of Minneapolis-St. Paul.

Reelection, 2006

Governor Pawlenty ran for re-election in 2006. He espoused conservative stands on issues. But conservatives criticized him on funding issues, in particular two pieces of legislation for stadiums for the Gophers and Minnesota Twins, and bond issues for public transit, including the Northstar commuter rail line.

The 2006 gubernatorial race included Minnesota Attorney General Mike Hatch, of the DFL, Peter Hutchinson of the Independence Party, and Ken Pentel of the Green Party. Pawlenty won, defeating Hatch by a margin of less than one percent, though both the state House and Senate gained DFL majority.

State budget

Pawlenty was elected in 2002 on a platform of balancing the state's budget without raising taxes. He emphasized his campaign and first term with the Taxpayers League of Minnesota slogan "no new taxes." His governorship was characterized by a historically low rate of spending growth. According to the Minnesota Management and Budget Department, general-fund expenditures from 2004 to 2011 increased an average of 3.5 percent per two-year term, compared to an average of 21.1 percent from 1960 to 2003 (these numbers, however, are not inflation-adjusted). University of Minnesota political science professor Larry Jacobs said that slowing down state spending and opposing tax increases were the "signature issue" of Pawlenty's governorship.

In his first year as governor, Pawlenty inherited a projected two-year budget deficit of $4.3 billion, the largest in Minnesota's history. After a contentious budget session with a Democrat-controlled Senate, he signed a package of fee increases, spending reductions, and government reorganization which eliminated the deficit. The budget reduced the rate of funding increases for state services, including transportation, social services, and welfare. It also enacted a perennial proposal to restructure city aid based on immediate need, rather than historical factors. In negotiations the governor agreed to several compromises, abandoning a desired public employee wage freeze and property tax restrictions.

During his second term, Pawlenty erased a $2.7 billion deficit by cutting spending, shifting payments, and using one-time federal stimulus money His final budget (2010–2011) was the state's first two-year period since 1960 in which net government expenditures decreased. Pawlenty has claimed this as "the first time in 150 years" that spending has been cut, but fact-checkers have disputed this claim as no public budget records prior to 1960 are known to exist.

Pawlenty has been criticized by some for providing a short-term budget solution but coming up short in his long-term strategy as Governor. The state department of Management and Budget reports that the two-year budget starting in July of 2011 is projected to come up $4.4 billion short. Former Minnesota Governor Arne Carlson, a Republican, criticized Pawlenty's budget strategy: he borrowed more than $1 billion from the tobacco settlement (money set aside for heath care), borrowed more than $1.4 billion from K-12 education funding, borrowed more than $400 [million] from the Health Care Access Fund for low-income families, among other short-term shifts in accounting. The result was a $5 billion deficit, the seventh largest in the United States. Minnesota property taxes rose $2.5 billion, more than the previous 16 years combined, and Moody's lowered the state's bond rating. Carlson told ''Time'', "I don't think any governor has left behind a worse financial mess than he [Pawlenty] has." Pawlenty responded "My friend governor Arne Carlson is, of course, now an Obama and John Kerry supporter".

Minnesota Supreme Court case

While Pawlenty said he was "confident" in his right to use unallotment, the Minnesota Supreme Court ultimately decided against him, voting 4 to 3 in a decision in May 2010. His budget had been the subject of a lawsuit in Ramsey County District Court, which was decided against him. Judge Kathleen Gearin decided Pawlenty exceeded his constitutional authority in making unilateral spending cuts to a $5.3 million special dietary program that he had unalloted. Attorney David Lillehaug said initially, "This is, I don't think it's understating this to say, this is one of the most important court cases in Minnesota legal history." Pawlenty announced the following day that he would appeal; he filed his defense in February, and arguments were heard on March 15. In May, the Supreme Court affirmed Judge Gearin, deciding that "Because the legislative and executive branches never enacted a balanced budget for the 2010–2011 biennium, use of the unallotment power to address the unresolved deficit exceeded the authority granted to the executive branch by the statute". Pawlenty responded:

I will fight to reduce spending and taxes in Minnesota and that battle continues. My commitment to the people of Minnesota remains the same: we will balance the budget without raising taxes.

After the court ruling, as the 2010 legislative session drew to a close, Pawlenty vetoed a budget which would fix a $2.9 billion deficit by adding a new tax bracket for six-figure incomes. In response to the proposal, he criticized Democrats for attempting to raise taxes in the midst of an extremely difficult economic situation. Eventually, due in part to the efforts of House Speaker Margaret Kelliher, who was running for the 2010 Democratic nomination for governor of Minnesota, the General Assembly passed legislation approving nearly all the original unallotments.

Funding projects

Since the Minnesota Constitution prohibits state-run gambling outside of Native territory, Pawlenty proposed negotiating with Minnesota's 11 tribes over profit sharing of their casinos. Legislators also pushed a proposal to turn Canterbury Park horse track into a racino. The plan was poorly received by Northern Tribes who would operate part of the racino, citing reluctance to compete with other tribes. Tribes with casinos opposed the expanded gambling and some legislators objected on moral grounds that the state shouldn't exploit problem gamblers. Politicians in heavy tribal areas feared losing campaign-finance sources if they supported the plan. Delays by the Legislature ended with the bill being pulled from committee. Tribes had spent millions lobbying legislatures in 2004.

Pawlenty worked throughout 2006 to fund a Minnesota Twins baseball stadium in Minneapolis. The resulting Minnesota Twins-Hennepin County ballpark bill called for an increased county sales tax which passed the state legislature and was symbolically signed in at the Hubert H. Humphrey Metrodome. The majority of Hennepin County commissioners did not feel a referendum was necessary to approve the sales tax because of the delay it would cause. Pawlenty and the Legislature agreed, citing 10 years already of the project's debate and exempted the county from state law requiring one in the bill.

In June 2006, Pawlenty signed a $999.9 million public works bill that included funding for additional work on the Northstar Commuter rail line (a change in position from reservations about the idea he initially expressed), an expanded Faribault prison, a bioscience building at the University of Minnesota, and science facilities at Minnesota State University in Mankato. The bill also funded a $26 million expansion of the University of Minnesota's Carlson School of Management.

In 2011, Pawlenty shut down an Islamic finance program, that was part of a larger program to increase home ownership in Minnesota, and his spokesperson said that the program accommodated the Muslim ban on interest. Adam Sorensen from TIME questioned whether this was a case of double standards, pointing out New York's kosher food regulations, Blue Laws that prohibit alcohol sales on Sundays, and Pawlenty's own creation of "The Governor's Council On Faith-Based And Community Initiatives".

Education

In the budget process, Pawlenty made an effort to preserve education funding while cutting other government spending. In 2009 he bolstered education funding using federal stimulus grants. Despite this, education funding fell from $9,700 to $8,400 per student (adjusted for inflation) during his tenure. Pawlenty was an advocate for charter schools and was praised by the National Alliance for Public Charter Schools for his education policies. In 2010 the organization rated Minnesota #1 in the country for charter school promotion.

Pawlenty oversaw the repeal of the ''Profile of Learning'' Kindergarten through 12th grade graduation requirements and sought to reinstate them during his governorship. Renamed the ''Minnesota Academic Standards,'' they were guided by Department of Education commissioner Cheri Pierson Yecke. The bill's first draft raised several concerns by the education review boards including the amount of content, age-appropriateness, and a European-centric view of the social sciences portion. Yecke revised and expanded material based on the response. Even as both Legislative houses passed the Academic Standards bill, her confirmation as commissioner was rejected by the DFL majority Minnesota Senate. She was seen as an outsider coming from Virginia and became unpopular having pushed the academic reforms during a tight budget session as well as her critical look of Minnesota schools. In her confirmation hearing DFLers also noted concern over her conservative viewpoints.

In June 2006, Pawlenty proposed the ''ACHIEVE'' program for the top 25% of high school graduates. The program would pay for tuition for the first 2 years (4 years for selected fields such as science, technology, engineering and math) and would cost the state an estimated $112 million per 2-year cycle. However the program was not included in the 2007 higher education bill.

Pawlenty used an accounting change called a tax shift to balance the state deficit without raising taxes. School districts statewide may unexpectedly lose $58 million in interest and reserve revenue.

In 2010, Pawlenty vetoed a bill (HF 3164), which the legislature had passed 110 to 20, calling for Minnesota State Colleges & Universities (MnSCU) to revamp its credit transferring system within five years to fix "minimal loss of credits for transferring students" who had been losing between 10 and 30 percent of their credits. Pawlenty found it "unnecessary" because MnSCU was fixing their system already "through internal actions and policy changes".

Transportation

During Pawlenty's first term, urban traffic congestion was a significant concern of voters. He appointed his lieutenant governor, Carol Molnau, as transportation commissioner, for which she was approved by the legislature in May 2004. Molnau attempted to reform the transportation department, (Mn/DOT), using concepts such as "design-build". Legislators criticized Molnau's performance as transportation commissioner, citing ineffective leadership and management, and removed her from that role in February 2008, a decision Pawlenty said was motivated by partisanship.

Pawlenty favored raising fees and imposing toll lanes on roads as the primary means of discouraging excessive traffic. During his term, the carpool lanes of Interstate 394 leading into downtown Minneapolis were converted into high-occupancy toll lanes. Pawlenty used or threatened vetoes in 2005, 2007 and 2008 on legislation funding proposed highway expansion, infrastructure repairs, road maintenance, and mass transit. The 2008 veto was in spite of Pawlenty's announcement that he would consider reversing his opposition to a state gas tax increase for funding road and bridge repairs, in the wake of the collapse of the I-35W Mississippi River bridge.

Pawlenty had opposed the Northstar Commuter Rail as a legislator but changed his position in 2004, announcing a funding plan to jump start the project, when the Bush administration determined the rail line was deemed cost-effective and time-saving for commuters.

In April 2008 during the budget bonding bill signing, Pawlenty used his line-item veto on $70 million pledged toward the building of the Central Corridor light-rail project, intended to connect Minneapolis and Saint Paul. In vetoing the expenditure, Pawlenty did not consult Peter Bell, head of the Metro Council and project leader. Pawlenty stated that he vetoed the bill in order to send a message to the Legislature, which had exceeded his initial budget request, that they needed to "stay focused, be fiscally disciplined, set priorities and solve this budget crisis in a fiscally disciplined way." Pawlenty however was supportive of the project and had requested the money in the bonding bill he submitted to the Minnesota State Legislature. The veto disappointed some of Minnesota's congressional representatives in Washington, including Minnesota's Republican Senator Norm Coleman, who pledged to "raise my voice as strong as I can, as loud as I can. The federal commitment is there." Though Pawlenty's veto might have delayed the ability of the state to receive federal matching funds for the project, Bell said the project was not derailed. The Central Corridor funding issue was resolved on May 19, 2008 with the state pledging its original amount towards the project after legislators compromised with Pawlenty's budget requests.

There were Republican state legislators who supported other cuts of the bonding bill, including Doug Magnus, the ranking Republican on the House Transportation Finance Division, who praised Pawlenty's "fiscal responsibility." Critics, including Chris Coleman, Mayor of Saint Paul, called Pawlenty's veto "political gamesmanship," seeing the move as retribution for the Legislature's successful override of Pawlenty's veto of a transportation bonding bill. They noted cuts overwhelmingly targeted Democratic districts, and Democratic stronghold Saint Paul most heavily.

Crime

Crime in Minnesota was a high-profile political issue during Pawlenty's governorship. When crime rates in Minneapolis spiked 16 percent from 2004 to 2005, city officials blamed Pawlenty for large cuts to state aid, which they said restricted public safety resources. Pawlenty in turn criticized the capital city for poorly allocating its funding.

Pawlenty made two large efforts to expand penalties for sexual offenders. In response to his first proposal in 2005, the state legislature passed a large package of sentencing reforms. One new instrument was the possibility of a life sentence without parole for serious offenders, although Pawlenty expressed disapproval at the courts' reluctance to use this option: only seven individuals received such a sentence in the first two years of implementation. Pawlenty made a push for even harsher sentences in 2010, which increased the presumptive sentence for first-degree sex offenses from 12 years to 25 years and increased it further for repeat offenders. At the same time he advocated for a $90 million expansion of the state's civil commitment program for sexual offenders, maintaining that the increased criminal sentences would keep the commitment program's cost under control. According to a single report in the ''Star Tribune'', "A report on Minnesota's sex-offender program delivered to legislators in the final days of the Pawlenty administration was heavily edited by a top political appointee to reflect the former governor's skepticism about the effectiveness of treatment and to delete arguments for expanded community resources for offenders."

Early in 2006, after issuing a study that estimated the cost of illegal immigration to the state as approximately $188 million, Pawlenty announced a program for changing the way the state dealt with persons who were in the United States illegally. Pawlenty said that the economic benefits of illegal immigration did not justify the illegal behavior. Pawlenty's extensive proposal included the designation of 10 state law enforcement officials as the Minnesota Illegal Immigration Enforcement Team, "trained to question, detain and arrest suspected illegal immigrants" with a focus on "such crimes as human trafficking, identity theft, methamphetamine distribution and terrorism." He rounded out his proposal with tougher penalties for false identification, and instituting a fine of up to $5,000 for employers of illegal immigrants. His proposal was challenged by DFL senators who preferred increased legal immigration to punitive action.

Ethanol

Minnesota has mandated a 10% mixture of gasoline and ethanol (gasohol) since 1997. Pawlenty signed into law in May 2005 a bill that will raise the minimum mandated mixture to 20% in 2013. Pawlenty has also lobbied the Governors' Ethanol Coalition to mandate higher ethanol use nationwide.

Conservative Republican governors were not supportive of Pawlenty's presentation on clean energy to the governor's association, which he gave in cooperation with Ed Rendell, who is the governor of Pennsylvania and the National Governors Association's Democratic vice-chairman. With Kathleen Sebelius of Kansas, Pawlenty is cochairman of the association's energy committee. The effort received "adamant opposition" from governors of petroleum (oil) producing states.

Health

In 2004, Minnesota's ''Star Tribune'' newspaper opined that the credibility of Pawlenty's commissioner of health, Dianne Mandernach, suffered when a website posting by the department suggested that abortion might have a role in breast cancer. She also angered many when it was learned she had delayed releasing government research on cancer in miners. In 2007, Mandernach resigned.

In 2005, Pawlenty asked a U.S. Senate subcommittee to allow his MinnesotaCare health plan to expand and continue allowing state residents and employees to import cheaper Canadian prescription drugs.

In 2007, Pawlenty signed into law the 2007 Omnibus Health and Human Services Appropriations Bill, which provided funding for the Health Care Transformation Task Force, a panel of health care experts charged with exploring ways to reduce health care spending, improve quality, and ensure that Minnesota develops a universal health care plan by 2011.

He has recently used health care funding cuts as a mechanism to balance the state budget. After years of assuring doctors that the state sick tax would only be used to fund health welfare programs, in 2009 Pawlenty recommended a 3% cut in physician reimbursements from the state and asked that the sick tax be put instead into the state's general budget. Pawlenty used a line-item veto to remove $381 million from health and human services funding, which could lead to 35,000 Minnesotans losing their General Assistance Medical Care (GAMC) health insurance in 2011. Hennepin County Medical Center—the largest provider of health care to Minnesota's poor and uninsured—closed two clinics, reduced its staff and reduced access to non-emergency services. State Senator Linda Berglin wrote a bill that would extend GAMC funding, which the Senate is considering.

In 2010, he refused federal health care funds including more than $1 billion to expand the number of Minnesotans covered by Medicaid, $68 million for a high-risk insurance pool, $1 million to help set up an insurance exchange where consumers could shop for health coverage, and $850,000 for teenage pregnancy prevention. Pawlenty accepted a $500,000 abstinence-only sex education grant that will require $350,000 in matching state money. Pawlenty said, "It doesn't say we have to apply for all of them."

Foreign relations

Pawlenty's first term coincided with the deployment of National Guardsmen from numerous states, connected with the War on Terror and the wars in Iraq and Afghanistan. During his two terms Pawlenty made trips to Iraq, Afghanistan, Bosnia, Kosovo, and Kuwait visiting Minnesota troops.

Pawlenty was visited in 2004 by Mexican President Vicente Fox in talks to strengthen trade. Fox announced that his country would open a consulate in Minnesota the next year, removing the need for Mexican residents in the state to travel out of state for identification papers and other materials. In mid-2006, in response to illegal immigration, he sent Minnesota National Guardsmen to the U.S.–Mexico border at the request of the U.S. Department of Defense and the U.S. Department of Homeland Security.

Pawlenty took a delegation of nearly 200 Minnesotan business, government, academic and civic leaders on a weeklong trip to China in mid-November 2005. The stated objectives were to provide a forum for companies to acquire market information, assess market potential, evaluate market entry strategies and identify potential business partners, as well as to promote Chinese investment in Minnesota. Pawlenty also led Minnesota trade delegations to Canada in 2003, Poland and the Czech Republic in 2004, India in 2007, and Israel in 2008.

Other activities

Throughout his eight-year tenure Pawlenty hosted a weekly one-hour radio show on WCCO-AM, a tradition he inherited from his predecessor as governor, Jesse Ventura. Pawlenty was the chairman of the National Governors Association for the 2007–2008 term. He also served as Chair of the Midwestern Governors Association in 2006.

McCain presidential campaign, 2008

Beginning in 2005, Pawlenty was rumored in the press as a potential candidate for president of the United States. When formally announcing his candidacy for a second term as Governor of Minnesota on May 31, 2006, Pawlenty said, "As to my future, if I run for governor and win, I will serve out my term for four years as governor." On January 15, 2007, after being reelected, Pawlenty said, "I am committed to serving out my term as governor. That's what I am going to do."

In 2007, it was announced that Pawlenty would be serving in a lead role for McCain as a national cochair of his presidential exploratory committee which led to Pawlenty becoming cochairman of McCain's campaign (along with Phil Gramm and Tom Loeffler). In January 2008 a reporter for the Minneapolis ''Star Tribune'' suggested Pawlenty's renewed focus on his proposed immigration reform plans might be politically motivated as counterbalance to McCain's less favorable guest worker program.

For many weeks, Pawlenty was widely considered to be a leading candidate for the vice-presidential nomination on the Republican ticket with John McCain in the 2008 presidential election. McCain surprisingly chose Alaska Governor Sarah Palin.

In 2008 Pawlenty expressed support for the Troubled Asset Relief Program (TARP). But in 2010 Pawlenty claimed that he had made those statements solely as a surrogate for presidential nominee McCain and never actually supported the idea himself.

Presidential race, 2012

Early steps

In February 2005, ABC News identified him as a potential candidate for president. Pawlenty decided not to seek a third term as governor, and so was not a candidate in the November 2010 gubernatorial election. In July 2009, Public Policy Polling conducted a poll that showed that President Obama was favored to win against Pawlenty in his home state of Minnesota by more than 10 points. In October 2009, a CNN article suggested that Pawlenty was contemplating a 2012 White House bid. Among those advising him in preparation for a potential presidential run is lobbyist and former Congressman Vin Weber.

In late 2009, Pawlenty began taking steps that many saw as leading to a 2012 presidential bid. He visited Iowa in November 2009 and April 2010, making political speeches. In January 2011, the ''New York Times'' reported that "Few Americans, in fact, even know his name." In January 2011, Pawlenty told the College Republicans group at The George Washington University "If I decide to run it would be for president, not vice president."

Book tour and political positions

Pawlenty went on tour for his book ''Courage to Stand'', and as of January 18, his book had reached #1,979 on Amazon.com's list of bestsellers. Pawlenty calls himself a social conservative. In his extended interview with Jon Stewart on ''The Daily Show'', he said he thinks United States Social Security and Medicare need to be cut to balance the federal budget. Pawlenty believes that state governments should outlaw abortion, except for cases of rape, incest, and to save a woman's life. He thinks the United States Supreme Court decided ''Roe v. Wade'' wrongly, abortion being a state, not a federal, matter. He opposes same-sex marriage and civil unions. He would like to reinstate "Don't ask, don't tell" should he become president. Answering a question from talk radio host Bryan Fischer, he replied, "... I have been a public supporter of maintaining Don't Ask, Don't Tell and I would support reinstating it as well".

In December 2010, Pawlenty was one of three U.S. governors who publicly declared solidarity with Christian-right group Family Research Council.

Pawlenty's tour has been in Minneapolis, San Francisco and Dallas, and it ends January in Iowa where the Iowa Caucuses are scheduled for February 6, 2012. "That will come up fast," he said, "if I do run." In Minneapolis, speaking to Pat Kessler of WCCO-TV who asked about his feelings regarding a potential run for president by Representative Michele Bachmann, "I have a lot of respect for Michele Bachmann … Whether she runs or not, it's gonna be a big field. There's gonna be five, six, seven, eight people running … Whoever wants to run can run. The more, the merrier."

In a December 2010 column in ''The Wall Street Journal'', Pawlenty argued in favor of the historical benefits of "private sector" labor unions and strongly against "public sector" labor unions, whose collective bargaining rights he would like to see curbed: "The rise of the labor movement in the early 20th century was a triumph for America's working class. In an era of deep economic anxiety, unions stood up for hard-working but vulnerable families, protecting them from physical and economic exploitation." He also criticized modern unions: "The moral case for unions—protecting working families from exploitation—does not apply to public employment... Unionized public employees are making more money, receiving more generous benefits, and enjoying greater job security than the working families forced to pay for it with ever-higher taxes, deficits and debt."

Announcement

On March 21, 2011, Pawlenty announced, via Facebook, that he had formed an exploratory committee in preparation for a potential run for the 2012 Republican presidential nomination.

On April 12, 2011, Pawlenty said clearly on CNN's ''Piers Morgan Tonight'' that he was "running for President" and not for Vice President, adding that a formal announcement would be given in several weeks. On Twitter, his spokesman said CNN took his comments out of context.

On May 23, 2011, Pawlenty launched his candidacy for President in a speech in Iowa stating: "I'm going to try something a little unusual in politics. I'm just going to tell the truth." A YouTube video appeared a day before. ''The Wall Street Journal'' wrote of his candidacy, and the luck he experienced in the GOP's field, that Pawlenty has a "golden chance to become the chief rival to... Mitt Romney".

Ames Straw Poll and withdrawal

Pawlenty finished third in the Ames Straw Poll on August 13, 2011, behind the winner Michele Bachmann and the runner-up Ron Paul. The following day he announced his decision to withdraw from the presidential race.

Personal life

Pawlenty frequently uses (and is referred to by) the mononym TPaw or T-Paw.

In 1994, Pawlenty's wife Mary was appointed as a judge of the Dakota County District Court in Hastings, Minnesota and the two began raising their two daughters, Anna and Mara. After he was elected in 2002, the family remained at their Eagan home instead of moving into the Governor's Residence because of Mary's requirement to stay in her judicial district. In 2007, she left her judicial position to become General Counsel of the National Arbitration Forum, a dispute resolution company based in Minneapolis. She stayed on only briefly before departing for another dispute resolution company, the Gilbert Mediation Center.

Pawlenty was raised a Roman Catholic. His conversion to an Evangelical Protestant faith has been attributed to his wife Mary, who is a member of Wooddale Church in Eden Prairie, Minnesota, a member congregation of the Minnesota Baptist Conference. Its senior pastor, Leith Anderson, is the president of the National Association of Evangelicals. In a January 2011 interview, Mr. Pawlenty stated that "I love and respect and admire the Catholic Church. I still attend Mass once in a while there. The church I now attend is an interdenominational church which has got many former Catholics in it, and so we share the Christian faith and the Bible. I had to reconcile my faith life with my wife so we could have a consistent, integrated family faith life."

Public image

Political views

Pawlenty is generally considered a conservative on the American political spectrum. With regards to his economic record, he has drawn mixed reviews from fiscally conservative interest groups. The lobbying group Taxpayers League of Minnesota gave Pawlenty an average approval score of 80% during his years as a state legislator, while the Cato Institute think tank gave him scores ranging from C to A across his eight years as governor. In February 2008, ''Washington Post'' columnist Robert Novak wrote that Pawlenty was the most conservative Minnesota governor since Governor Theodore Christianson in the 1920s. A 2011 white paper by the Club for Growth, analyzing Pawlenty as a presidential candidate, found his political stance difficult to identify. The group praised him for reduced growth in spending and taxation, but found that he "has some simply inexcusable tax hikes in his record" and questioned his support of proposals such as "mandatory vegetable oil in gasoline, cap and trade, and a statewide smoking ban." Chris Edwards, a director at Cato, speculated that Pawlenty's rightward tack in his second term was related to his impending presidential run.

Approval ratings

In April 2009, 46% of Minnesotans approved of Pawlenty, while 40% disapproved.

Among registered Republicans nationwide in July 2009, 38% had a favorable view of him while 33% didn't according to a Rasmussen Reports survey.

In March 2010 42% of Minnesotans approved of Pawlenty, while 52% disapproved.

In October 2010 a Rasmussen report showed that Pawlenty had a 49% approval rating among Minnesotans with 49% disapproving.

A March 2011 survey by Gallup stated that Pawlenty began his Presidential run with only 41% name recognition in the GOP.

Also in March 2011, the Public Policy Polling (PPP) agency found that nationwide voters had a net negative view of Pawlenty, with 15% viewing him favorably verses 33% unfavorably.

In the June 2011 results of a survey of registered Minnesota voters conducted from May 27-30, 42% of Minnesotans had a favorable opinion of Pawlenty, while 52% had an unfavorable opinion of him. In the 2012 presidential race polling, the results show President Obama leading Pawlenty by 51% to 43%, suggesting Pawlenty would lose his home state to President Obama were he the 2012 GOP nominee.

Electoral history

49.1% 81.0% 74.4% 48.5% 59.6%

+ Minnesota District 38B state representative elections, 1992–2000

rowspan="3" style="vertical-align: bottom;"

Year

! colspan="3"

! colspan="3"

Total

Source

! Name !! Votes !! % !! Name !! Votes !! % !! Name !! Votes !! %

! 1992

Tim Pawlenty

9,610

|

Linda Rother

8,773

44.8%

James Russell McMahon

253

1.3%

19,583

style="text-align: center;">

1994

Tim Pawlenty

12,172

|

''None''

''None''

15,022

style="text-align: center;"

<

1996

Tim Pawlenty

14,747

|

''None''

''None''

19,822

style="text-align: center;">

1998

Tim Pawlenty

9,118

|

Leo Brisbois

7,819

41.6%

''None''

18,809

style="text-align: center;"

2000

Tim Pawlenty

13,779

|

Gary Moore

7,239

31.3%

''None''

23,100

43.8% 46.4%

+ Minnesota gubernatorial elections, 2002–2006	rowspan="3" style="vertical-align: bottom;"	Year					! colspan="3"	! colspan="3"	! colspan="3"	Total	Source
! Name !! Votes !! % !! Name !! Votes !! % !! Name !! Votes !! % !! Name !!Votes !! %
Minnesota gubernatorial election, 2002>2002	Tim Pawlenty	999,473	|	Roger Moe	821,268	36.0%	Tim Penny	364,534	16.0%	Ken Pentel	50,589	2.2%	2,282,860	style="text-align: center;">
Minnesota gubernatorial election, 2006	2006	Tim Pawlenty	1,028,568	|	Mike Hatch	1,007,460	45.4%	Peter Hutchinson	141,735	6.4%	Ken Pentel	10,800	0.5%	2,217,818

Records

Tim Pawlenty's records are available for research use. They include legislative action logs and letters, State of the State addresses, daily schedules, subject files, resolution and chapter files, correspondence files, administrative rules files, executive orders, Governor's Office photographs, press releases, agency and board files, operations files, sound and video recordings, legal counsel files, and appointment files. Some digital content is included.

References

External links

Pawlenty 2012 ''official campaign site''

Campaign contributions at ''Follow the Money'' (U.S. House)

Campaign 2002 – Minnesota Governor ''Minnesota Public Radio''

Campaign 2006 – Tim Pawlenty ''Minnesota Public Radio''

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Category:1960 births Category:Living people Category:American people of German descent Category:American people of Polish descent Category:Baptists from the United States Category:Converts to Baptist denominations Category:Converts to Protestantism from Roman Catholicism Category:Governors of Minnesota Category:Members of the Minnesota House of Representatives Category:Minnesota lawyers Category:Minnesota Republicans Category:People from Dakota County, Minnesota Category:People from Eagan, Minnesota Category:United States presidential candidates, 2012 Category:University of Minnesota alumni Category:University of Minnesota Law School alumni

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