Wealth Matters: What the Small Player Can Expect When Using a Lobbyist

Robert Caplin for The New York Times

Domenic Rom, a senior vice president at Technicolor, a postproduction company for film and television, became part of a group of similar companies that wanted to lobby for a tax credit.

IF there is one thing most small-business owners have in common, it is that they have far less ability than big corporations to affect what happens to them politically.

Few small-business owners — the kind of people who accumulate wealth through a service or manufacturing business and are working at it every day — have the deep pockets of a major corporation. Consider what Amgen, the world’s largest biotechnology company, did to help win an exemption in the so-called fiscal cliff bill to extend its patent on a profitable dialysis drug for two more years at a great cost to Medicare. It sent its 74 lobbyists in Washington to meet with — and direct contributions to — a host of politicians who worked in its favor.

But even if small businesses can’t buy the kind of influence that a huge company like Amgen can, that does not mean they cannot buy influence at all. Still, as in other aspects of life, you get what you pay for.

Entrepreneurs would want to hire a lobbyist for a fairly straightforward reason: they have an issue they want addressed or changed and they have reached the point where they feel they need to act. What is more difficult is acting on that impulse effectively, knowing it could cost a lot of money.

Lawrence E. Scherer, a founder of State and Broadway, a lobbying firm in New York, said a typical retainer for a small-business client would be around $5,000 a month, but the assignment could last for a year or more. Suri Kasirer, once an aide to former Gov. Mario Cuomo of New York and president of Kasirer Consulting, said her typical retainer was $10,000 to $20,000 a month, with a three-month minimum.

“For small-business owners, the idea of having a lobbyist interact with a government is so novel and so out of their scope that $5,000 a month could seem daunting,” Mr. Scherer said. “But as government has more issues in front of it, it could be a cheap date.”

People who have success lobbying state and local governments — since the federal government is beyond the budget of individuals — tend to fall into three categories: they want something changed, they want something new or they want access.

Avik Kabessa, chief executive of Carmel Car and Limousine Service in New York City, said he became part of a group of livery car owners in 2008 that lobbied the state to establish a workers’ compensation fund for livery drivers and to repeal a sales tax on livery fares.

He said it took a year and a half for the lobbying efforts to work. The costs were split among members of the group, called the Livery Round Table. (Livery companies fall between higher-end black car and limousine services and city taxis.)

“I wish we had the expertise, knowledge and contacts to have been able to do this ourselves,” he said. “But just as you would go to a doctor when you’re sick, you go to a lobbyist for your legislative affairs.”

Ms. Kasirer is working on a similar case with a group of small-business owners who do not often work well together. She is representing seven expediters — companies that are paid by contractors and developers to handle getting various building permits in New York City. She said new rules could end their business.

“We were approached by a few of them, and we said ‘Let’s get as many of them together as we could,’ ” she said. “They realized that ultimately they could be put out of business or their business could be so severely handicapped that they would have to lay off people.”

For small-business owners, forming an ad hoc group and putting aside any competitive business interest to get something greater for their industry is important. So, too, is having the patience and the willingness to accept something short of their goal and then go back for more.

Domenic Rom, a senior vice president at Technicolor, a postproduction company for film and television, became part of a group of similar companies that wanted to lobby for a tax credit. While New York offered tax credits for shooting a film or television show in the state, it did not offer similar credits to the postproduction part of the industry, which includes editing, sound design and adding computer-generated effects.

Mr. Rom said the 14 companies created the Post New York Alliance and each paid $5,000 in dues. They began lobbying in 2009, working with Mr. Scherer. By the next year, they received a 10 percent tax credit for postproduction work.

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Living With Cancer: The Good Patient Syndrome

I remember when being good seemed strategic.

After the technician took out a pad to draw an inscrutable diagram, I nodded and pretended to recognize a squiggle at the center of what looked like a snail. I discussed my oncologist’s research projects, instead of complaining about pain. Generally I answered a nurse’s opening query — “So how are you?”– with a cheery “Good! How are you?” Grumbles about waiting interminably for a scan in a freezing room never rolled off my tongue. When an interventional radiologist managed to remove two stents from my body, I didn’t fault the surgeon who left them there to trigger a massive infection followed by an allergic response to antibiotics: I sent a thank you note to the radiologist.

What was wrong with me? Outside the medical sphere, I am prone to impatience, candor and bouts of argumentative fervor. Had feminine socialization kicked in? As a girl, I was trained to be courteous to people in positions of authority and to revere the saving knowledge of physicians. But men also exhibit symptoms of the good patient syndrome.

Indeed, Anatole Broyard preached its virtues in his book “Intoxicated by My Illness,” although his version was less compliant, more ironic than mine. “If a patient expects a doctor to be interested in him, he ought to try to be interesting. When he shows nothing but a greediness for care, nothing but the coarser forms of anxiety, it’s only natural for the doctor to feel an aversion.” Following this logic, Broyard embarked upon an impersonation: “I never act sick. A puling person is not appealing.” He therefore set out to charm his physicians — to distinguish himself from boring, easily forgotten patients. I did this too, adding a pinch of obedience, a dash of gratitude, and a smidgen of eccentricity to the mix. One doesn’t want to be just any old patient; patients are replaceable.

Since illness had never intoxicated me, why was I behaving like Broyard? The short answer is terror: these people could hurt me.

Were I to seem boring or easily forgotten, should I appear crabby or disagreeable, I might get neglected or, in my anxious imagination, harmed. Not consciously neglected or intentionally harmed, of course, because doctors and nurses have dedicated themselves to helping people whose sickness often makes them boring and disagreeable. But neglected or harmed nonetheless. Like most patients, I am keenly aware that the medical staff at most facilities are overloaded. It is easy to get left for hours unattended on a gurney or starved and freaked when surgeries are perpetually postponed or distressed and bruised when the bindings on limbs are roughly or hastily applied.

But of course adopting the role of model patient does not provide a solution. Much of the caretaking in hospitals remains out of the control of our personal physicians and nurses. And in any case, too much ingratiating docility can be dangerous to a patient’s health.

If I had persisted in asking my surgeon about the fate of the stents that he had implanted in my body, he might have remembered to remove them. If I had not followed to the letter the dosage he prescribed of a heavy-duty antibiotic, especially as I began to get sick to my stomach and dizzy, I might not have had the full-body breakdown of an allergic reaction. Earlier still, if I had insisted on better bowel preps before my first abdominal surgery, or a postponement, maybe the stents and infection and the allergic reaction to antibiotics would never have happened.

Even before that, if I had challenged my general practitioner who diagnosed indigestion, maybe my cancer would have been found at an earlier stage. If my grandmother had wheels, she’d be an omnibus: that’s a family joke.

So much for the magical thinking that good patients receive the best care. Being a submissive or dutiful patient doesn’t always pay off. Who exactly was I being good for? Sometimes it’s good to be bad.

Was I good for nothing? When I was at my most puling and unappealing and too sick to be good, with pain so overwhelming that I had to be taken to my oncologist’s examining room in a wheelchair, she placed her hand on my knee and kept it there while explaining how she would take care of me. Though I could not look her in the eye, though I could not speak for groaning, I took her point. I had foisted the good patient role on myself. She had always seen through the pose to the mortally sick human being. Why else would I be here, I realized.

At that moment I resolved to renounce or rectify my goodness. I don’t always succeed.

---

Susan Gubar is a distinguished emerita professor of English at Indiana University and the author of “Memoir of a Debulked Woman,” which explores her experience with ovarian cancer.

Read More..

Living With Cancer: The Good Patient Syndrome

I remember when being good seemed strategic.

After the technician took out a pad to draw an inscrutable diagram, I nodded and pretended to recognize a squiggle at the center of what looked like a snail. I discussed my oncologist’s research projects, instead of complaining about pain. Generally I answered a nurse’s opening query — “So how are you?”– with a cheery “Good! How are you?” Grumbles about waiting interminably for a scan in a freezing room never rolled off my tongue. When an interventional radiologist managed to remove two stents from my body, I didn’t fault the surgeon who left them there to trigger a massive infection followed by an allergic response to antibiotics: I sent a thank you note to the radiologist.

What was wrong with me? Outside the medical sphere, I am prone to impatience, candor and bouts of argumentative fervor. Had feminine socialization kicked in? As a girl, I was trained to be courteous to people in positions of authority and to revere the saving knowledge of physicians. But men also exhibit symptoms of the good patient syndrome.

Indeed, Anatole Broyard preached its virtues in his book “Intoxicated by My Illness,” although his version was less compliant, more ironic than mine. “If a patient expects a doctor to be interested in him, he ought to try to be interesting. When he shows nothing but a greediness for care, nothing but the coarser forms of anxiety, it’s only natural for the doctor to feel an aversion.” Following this logic, Broyard embarked upon an impersonation: “I never act sick. A puling person is not appealing.” He therefore set out to charm his physicians — to distinguish himself from boring, easily forgotten patients. I did this too, adding a pinch of obedience, a dash of gratitude, and a smidgen of eccentricity to the mix. One doesn’t want to be just any old patient; patients are replaceable.

Since illness had never intoxicated me, why was I behaving like Broyard? The short answer is terror: these people could hurt me.

Were I to seem boring or easily forgotten, should I appear crabby or disagreeable, I might get neglected or, in my anxious imagination, harmed. Not consciously neglected or intentionally harmed, of course, because doctors and nurses have dedicated themselves to helping people whose sickness often makes them boring and disagreeable. But neglected or harmed nonetheless. Like most patients, I am keenly aware that the medical staff at most facilities are overloaded. It is easy to get left for hours unattended on a gurney or starved and freaked when surgeries are perpetually postponed or distressed and bruised when the bindings on limbs are roughly or hastily applied.

But of course adopting the role of model patient does not provide a solution. Much of the caretaking in hospitals remains out of the control of our personal physicians and nurses. And in any case, too much ingratiating docility can be dangerous to a patient’s health.

If I had persisted in asking my surgeon about the fate of the stents that he had implanted in my body, he might have remembered to remove them. If I had not followed to the letter the dosage he prescribed of a heavy-duty antibiotic, especially as I began to get sick to my stomach and dizzy, I might not have had the full-body breakdown of an allergic reaction. Earlier still, if I had insisted on better bowel preps before my first abdominal surgery, or a postponement, maybe the stents and infection and the allergic reaction to antibiotics would never have happened.

Even before that, if I had challenged my general practitioner who diagnosed indigestion, maybe my cancer would have been found at an earlier stage. If my grandmother had wheels, she’d be an omnibus: that’s a family joke.

So much for the magical thinking that good patients receive the best care. Being a submissive or dutiful patient doesn’t always pay off. Who exactly was I being good for? Sometimes it’s good to be bad.

Was I good for nothing? When I was at my most puling and unappealing and too sick to be good, with pain so overwhelming that I had to be taken to my oncologist’s examining room in a wheelchair, she placed her hand on my knee and kept it there while explaining how she would take care of me. Though I could not look her in the eye, though I could not speak for groaning, I took her point. I had foisted the good patient role on myself. She had always seen through the pose to the mortally sick human being. Why else would I be here, I realized.

At that moment I resolved to renounce or rectify my goodness. I don’t always succeed.

---

Susan Gubar is a distinguished emerita professor of English at Indiana University and the author of “Memoir of a Debulked Woman,” which explores her experience with ovarian cancer.

Read More..

DealBook: Compuware Rejects Elliott's $2.3 Billion Bid

11:46 a.m. | Updated

Compuware said on Friday that its board had rejected a $2.3 billion takeover bid by Elliott Management, arguing that the hedge fund’s offer was too low.

Instead, the business software maker said that it was focused on its own corporate turnaround blueprint, including a three-year plan to cut costs and an effort to spin off its Covisint business communication products arm. It also unveiled plans to pay a 50-cent quarterly dividend, beginning next quarter.

Compuware said that Elliott’s offer of $11 a share, made last month, would not deliver enough value to shareholders, compared to the improvements that its self-help plan would yield.

“We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects,” Bob Paul, the company’s chief executive, said in a statement.

The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.

People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware. But the hedge fund also believed that private equity firms would also express interest.

Though shares in Compuware began rising after Elliott disclosed an 8 percent stake in the company in November, they have remained largely below the $11-a-share offer, implying investor skepticism about a deal being done. The stock closed on Thursday at $10.76.

Jesse Cohn, the Elliott portfolio manager overseeing the hedge fund’s bid, said in a statement: ““This is a good outcome. Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisors. We remain very interested in the company.”

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15,000 Crocodiles Escape From South African Farm

Associated Press

Some recaptured crocodiles on South Africa's Rakwena Crocodile Farm on Wednesday.

JOHANNESBURG — About 15,000 crocodiles escaped from a South African reptile farm along the border with Botswana, a local newspaper reported Thursday.

Driving rains forced the Limpopo River over its banks on Sunday morning near the Rakwena Crocodile Farm. The farm’s owners, fearing that the raging floodwaters would crush the walls of their house, opened the gates, springing the crocodiles, the report said. About half of the reptiles have been captured, with thousands still on the loose.

“There used to be only a few crocodiles in the Limpopo River,” Zane Langman, whose father-in-law runs the farm, told the newspaper Beeld. “Now there are a lot.”

“We will catch them as the farmers call us and say there are crocodiles,” Mr. Langman was quoted as saying. Efforts to reach the farm and the local police directly were unsuccessful, with no one answering the phones.

Many of the captured crocodiles were found in the brush and orange groves that line the Limpopo. Most of the animals are captured at night, according to Mr. Langman, who said they were easier to spot because their eyes reflect light.

One of them was found on a school’s rugby field in Musina, nearly 75 miles from the farm.

During the floods Mr. Langman set out in a boat to rescue his neighbors. “You want to get them, but you wonder the whole time if you’ll make it there,” he said, according to the Beeld report. “When we reached them, the crocodiles were swimming around them. Praise the Lord, they were all alive.”

Recent flooding has killed at least 10 people in South Africa’s Limpopo Province, which has seen heavy rains for the past week. Local officials are recommending that some regions be declared disaster areas. The authorities in neighboring Mozambique have evacuated tens of thousands of people.

Both the South African and Zimbabwean air forces have had to rescue villagers in areas isolated by the floodwaters.

The land along the Limpopo is home to dozens of game reserves and crocodile farms, some housing tens of thousands of reptiles.

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S.&P. Briefly Trades Above 1,500 Points

The Standard & Poor’s 500-share index briefly traded above 1,500 points for the first time since December 2007 following a sudden drop in claims for unemployment benefits, another sign that the United States labor market is healing.

A plunge in Apple’s stock pulled the Nasdaq composite index lower after the company predicted slower sales.

In early afternoon trading the S.&P. slipped from the morning high to 1,497 points, a gain of 0.2 percent. The Dow Jones industrial average was up 0.5 percent, at 13,849 points, and the Nasdaq was 0.4 percent lower.

Among the gainers was Netflix, which soared 38 percent after surprising the market with strong subscriber growth and a profit.

The market was buoyed by economic news from the Labor Department, which reported that the number of Americans filing new claims for unemployment benefits unexpectedly fell to its lowest since the early days of the 2007-09 recession.

Also, the Conference Board says its index of leading indicators rose 0.5 percent in December, the best showing since September. In November, the index was unchanged. The gauge is intended to anticipate economic conditions three to six months out.

Growth in Chinese manufacturing accelerated to a two-year high this month and a buoyant Germany took the euro zone economy a step closer to recovery, business surveys showed on Thursday.

Apple missed Wall Street’s revenue forecast for a third consecutive quarter after iPhone sales came in below expectations, fanning fears that its dominance of consumer electronics was slipping. On Thursday Apple shares were down 10.7 percent, to $458.95.

With signs the economy is improving, some investors are lauding the strength of the stock market rather than calling an end to the rally.

“The market has disconnected itself with Apple,” said Jack de Gan, chief investment officer at the Harbor Advisory Corporation in Portsmouth, N.H. “I think it shows great strength in the overall S.&P.”

The S.&P. 500 rose for a sixth day on Wednesday following stronger-than-expected results from I.B.M. and Google.

In Europe, shares closed higher. The FTSE in London gained 1.1 percent, while the DAX in Frankfurt gained 0.5.

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Well: The Drawn Out Process of the Medical Lawsuit

She was one of the most highly sought radiologists in her hospital, a doctor with the uncanny ability to divine the source of maladies from the shadows of black and white X-ray films.

But one afternoon my colleague revealed that she had been named in a lawsuit, accused of overlooking an irregularity on a scan several years earlier. The patient suing believed she had missed the first sign of a now rampant cancer.

While other radiologists tried to assure her that the “irregularity” was well within what might be considered normal, my colleague became consumed by the what-if’s. What if she had lingered longer on the fateful film? What if she had doubled-checked her reading before signing off on the report?

She began staying late at the hospital to review, and re-review, her work. And she worried about her professional reputation, asking herself if colleagues were avoiding her and wondering if she would have trouble renewing her license or hospital privileges. At home she felt distracted, and her husband complained that she had become easy to anger.

After almost a year of worry, my colleague went to court and was cleared of the charges. But it was, at best, a Pyrrhic victory. “I lost year of my life,” she told me. “That lawsuit completely consumed me.”

She was not the first colleague to recount such an experience. And far from overstating the issue, doctors may in fact be underestimating the extent to which malpractice not only consumes their time but also undermines their ability to care for patients, according to a new study in Health Affairs.

For more than 150 years, the medical malpractice system has loomed over health care, and doctors, the vast majority of whom will face a lawsuit sometime in their professional lives, remain ever vocal in their criticism of the system. But with few malpractice claims resulting in payments and liability premiums holding steady or even declining, doctors have started to shift their focus from the financial aspects of malpractice to the untold hours spent focused on lawsuits instead of patient care.

Now researchers are putting numbers to those doctors’ assertions. For the current study, they combed through the malpractice claims records of more than 40,000 doctors covered by a national liability insurer. They took note of the length of each claim, as well as any payments made, the severity of the injury and the specialty practiced by the physician being sued.

Most claims required almost two years from initiation of the lawsuit, and almost four years from the time of the event in question, to reach a resolution. Cases that resulted in payment or that involved more severe patient injuries almost always took longer.

The researchers then looked at the proportion of a doctor’s career spent on an open claim. They discovered that on average, doctors spent more than four years of their career — more time than they spent in medical school — working through one or more lawsuits. Certain specialists were more vulnerable than others. Neurosurgeons, for example, averaged well over 10 years, or over a quarter of their professional life, embroiled in lawsuits.

“These findings help to show why doctors care so intensely about malpractice and what they might face over the course of a lifetime,” said Seth A. Seabury, lead author and a senior economist at the RAND corporation in Santa Monica, Calif.

The results also underscore what plaintiffs must endure. Previous studies have shown that when medical errors occur, patients prefer to have physicians acknowledge the mistake quickly and apologize as soon as possible. Though less than 5 percent of all errors ever lead to a malpractice claim, lengthy claims drag out the process and, in certain cases, hold up what may be appropriate compensation.

Patients not directly involved can be affected as well. A legitimate malpractice lawsuit sometimes results in doctors or even entire institutions changing how they practice in order to prevent similar events from happening again. Lengthy legal wrangling can slow down these potentially important improvements.

While these findings are only an indirect measure of the extent to which malpractice claims can affect doctors’ and patients’ lives, the study makes clear the importance of considering time, as well as cost, when looking at malpractice reform.

“If we could get these cases resolved faster, we might be able to improve the efficiency of the system, lower costs and even improve quality of care for patients,” Dr. Seabury said.

“Having these things drag on is a problem for doctors and patients.”

Read More..

Well: The Drawn Out Process of the Medical Lawsuit

She was one of the most highly sought radiologists in her hospital, a doctor with the uncanny ability to divine the source of maladies from the shadows of black and white X-ray films.

But one afternoon my colleague revealed that she had been named in a lawsuit, accused of overlooking an irregularity on a scan several years earlier. The patient suing believed she had missed the first sign of a now rampant cancer.

While other radiologists tried to assure her that the “irregularity” was well within what might be considered normal, my colleague became consumed by the what-if’s. What if she had lingered longer on the fateful film? What if she had doubled-checked her reading before signing off on the report?

She began staying late at the hospital to review, and re-review, her work. And she worried about her professional reputation, asking herself if colleagues were avoiding her and wondering if she would have trouble renewing her license or hospital privileges. At home she felt distracted, and her husband complained that she had become easy to anger.

After almost a year of worry, my colleague went to court and was cleared of the charges. But it was, at best, a Pyrrhic victory. “I lost year of my life,” she told me. “That lawsuit completely consumed me.”

She was not the first colleague to recount such an experience. And far from overstating the issue, doctors may in fact be underestimating the extent to which malpractice not only consumes their time but also undermines their ability to care for patients, according to a new study in Health Affairs.

For more than 150 years, the medical malpractice system has loomed over health care, and doctors, the vast majority of whom will face a lawsuit sometime in their professional lives, remain ever vocal in their criticism of the system. But with few malpractice claims resulting in payments and liability premiums holding steady or even declining, doctors have started to shift their focus from the financial aspects of malpractice to the untold hours spent focused on lawsuits instead of patient care.

Now researchers are putting numbers to those doctors’ assertions. For the current study, they combed through the malpractice claims records of more than 40,000 doctors covered by a national liability insurer. They took note of the length of each claim, as well as any payments made, the severity of the injury and the specialty practiced by the physician being sued.

Most claims required almost two years from initiation of the lawsuit, and almost four years from the time of the event in question, to reach a resolution. Cases that resulted in payment or that involved more severe patient injuries almost always took longer.

The researchers then looked at the proportion of a doctor’s career spent on an open claim. They discovered that on average, doctors spent more than four years of their career — more time than they spent in medical school — working through one or more lawsuits. Certain specialists were more vulnerable than others. Neurosurgeons, for example, averaged well over 10 years, or over a quarter of their professional life, embroiled in lawsuits.

“These findings help to show why doctors care so intensely about malpractice and what they might face over the course of a lifetime,” said Seth A. Seabury, lead author and a senior economist at the RAND corporation in Santa Monica, Calif.

The results also underscore what plaintiffs must endure. Previous studies have shown that when medical errors occur, patients prefer to have physicians acknowledge the mistake quickly and apologize as soon as possible. Though less than 5 percent of all errors ever lead to a malpractice claim, lengthy claims drag out the process and, in certain cases, hold up what may be appropriate compensation.

Patients not directly involved can be affected as well. A legitimate malpractice lawsuit sometimes results in doctors or even entire institutions changing how they practice in order to prevent similar events from happening again. Lengthy legal wrangling can slow down these potentially important improvements.

While these findings are only an indirect measure of the extent to which malpractice claims can affect doctors’ and patients’ lives, the study makes clear the importance of considering time, as well as cost, when looking at malpractice reform.

“If we could get these cases resolved faster, we might be able to improve the efficiency of the system, lower costs and even improve quality of care for patients,” Dr. Seabury said.

“Having these things drag on is a problem for doctors and patients.”

Read More..

Nokia Shows a Profit, but Shares Drop

BERLIN — The Finnish phone maker Nokia on Thursday reported its first quarterly profit in almost two years since entering its smartphone alliance with Microsoft, but the company’s shares fell as doubts persisted about the company’s ability to accomplish a turnaround.

The company, based in Espoo, Finland, said it had a profit of €202 million, or $269 million, in the three months through December, up from a loss of €1.1 billion loss a year earlier. Sales fell 20 percent to €8 billion from €10 billion as it phased out an older line of smartphones that used the Symbian operating system.

The company’s shares fell as much as 8.4 percent in afternoon trading in Helsinki, to 3.194, as Nokia announced that it would not pay a dividend for 2012, which would save the company about €750 million. It was the first time Nokia had not paid a dividend in recent memory, according to the company.

Mats Nystrom, an analyst at SEB Enskilda Bank in Stockholm, said that Nokia had raised investor hopes earlier this month when it said it would report a quarterly profit, but that the company had not met those expectations with results that showed less-than-expected growth in the average selling prices of its flagship Lumia smartphone line and falling cellphone prices. “I still think it is far from a certainty that this turnaround will be a success,” Mr. Nystrom said.

In a conference call with journalists, the Nokia chief executive, Stephen Elop, said the company had successfully eliminated investor concerns about its future and ability to pull off a turnaround. Nokia’s net cash on hand at the end of December, bolstered by the decision to forgo a dividend payment, rose to €4.4 billion from €3.6 billion in September.

“For investors, it was a solid quarter in which we removed concerns about our cash situation,” Mr. Elop said. The former Microsoft senior executive has closed factories across Europe and eliminated 16,500 workers from Nokia’s phone business over the past year.

The quarterly net profit was the first since Nokia announced its alliance with Microsoft in February 2011, which set off a turbulent transition that led to about €5 billion in combined losses, the laying off of a third of the company’s work force and a steep decline in its market share in smartphones, the industry’s defining segment.

While sales of Nokia’s new Lumia line, which uses Microsoft’s Windows Phone operating system, are accelerating, to 4.4 million units in the fourth quarter from 2.9 million in the third, the company is now a distant challenger to the industry leaders Apple and Google. The Android operating system from Google is now running nearly two-thirds of all new smartphones sold around the world.

Apple sold more than 10 times the number of iPhones during the fourth quarter, 47.8 million, and sales of Android smartphones, according to International Data Corp., reached 136 million in the third quarter. But as the largest maker of smartphones running Microsoft’s new Windows Phone 8, Nokia can build on its gains.

“This is really the time now for Nokia to put up results,” said Francisco Jeronimo, an I.D.C. analyst in London. “They are almost exclusively out there with Windows 8, and Microsoft is strongly promoting the operating system. There can be no more excuses now.”

In North America, Nokia increased its sale of phone handset sales by 40 percent in the fourth quarter to 700,000 units, up from 500,000 in the third quarter. Mr. Jeronimo said those results were weak considering the sizable marketing investment in the United States and Canada by Nokia and Microsoft on Windows 8.

Nokia’s share price has fallen by more than half during its software alliance with Microsoft. The shares have risen about 13 percent this year.

In the fourth quarter, Nokia’s profit was fueled by continued cost-cutting and the introduction of the Lumia 820 and 920 smartphones running Windows Phone 8.

The new handsets helped Nokia raise the average selling price of Lumia phones in the quarter to €186, up 33 percent from €140 in the same quarter a year earlier. But the average price of Nokia’s basic cellphones, which still make up almost two-thirds of its total phone sales, fell by 3 percent to €31 from €32.

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IHT Rendezvous: Kissinger: Political Threats to Global Economy Abound

DAVOS, Switzerland — Henry A. Kissinger has never shied from unvarnished political assessments and during an hour-long address to the World Economic Forum on Thursday, the former American secretary of state delivered a list of sober warnings about rising threats on the world stage.

Executives and policymakers here, fixated on economic gyrations and the environment for deals, sat riveted as the elder statesman, speaking in his trademark slow and sonorous tone, warned of political threats to the world order. And a nuclear Iran, Mr. Kissinger said, poses perhaps the biggest near-term threat to stability and diplomacy in the Middle East.

The United States and other Western countries have accused Iran of developing a nuclear weapons program, while Iran has insisted its nuclear program is peaceful. Mr. Kissinger urged President Barack Obama to give negotiations with Iran a chance. At the same time, he said, Iran must ask itself whether a failure to build nuclear capability is truly a challenge to the Iranian national identity.

A nuclear Iran “is approaching,” he told the gathering. So in a few years, people will have to come to a determination of how to react, or the consequences of non-reaction,” he said.

Unilateral intervention by Israel would be a “desperate last resort,” Mr. Kissinger added. But if Iran continues to use negotiations simply to buy time to advance its nuclear program, “the consequences will be extremely dangerous.” Surrounding Arab and Gulf states, which already have nuclear power programs, could make nuclear weapons their arsenal of choice.

“If a nuclear conflict arises,” Mr. Kissinger said, “that would be a turning point for human history. So negotiations must move forward.”

The tension is building as conflicts elsewhere in the region rage. The war in Syria remains a challenge for Western powers. He called on the United States and Russia to work together to resolve the crisis, but to step gingerly. If the outside world intervenes militarily, he said, “it will be in the middle of a vast ethnic conflict; and if it doesn’t intervene militarily, it will be caught in a humanitarian tragedy.”

A number of outcomes are possible in Syria, he added, including President Assad remaining in power, a victory by Sunni rebels, or the emergence of a loose coterie of ethnic groups. Whatever the outcome, “the more the outside world competes, the worse it gets,” he said referring to Russia and the West, who have often worked at cross purposes.

Turning to the Israeli-Palestinian conflict, Mr. Kissinger said that while a consensus has developed on a desired outcome, “no one has been able to determine how to get there.”

Only one thing was clear, he added. Any settlement would “require significant sacrifices on the Israeli side from the position they now hold,” he said. And “there has to be some reciprocity from the Arab side other than uttering the word ‘peace.’”

As for the festering European crisis, Mr. Kissinger advocated a political solution if an economic one ultimately stumbles. “The issue that needs to be resolved is the relationship between austerity and growth. And if there is no growth, how the economic void will be
filled,” he said. In diplomacy terms, the question is the extent to which countries with money are willing to help those that are still flagging.

“If the answer is negative” then the idea of European unity is called into question, he said. Europe may need to shift its approach to unity through an economic construction to one of “political construction,” he said.

At the end of the day, he added, “Europe should be maintained as an idea even if the ideal solution does not emerge.”

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