By Dan Waltz
1Cyber attacks from terrorists, nation states, criminals and others disrupt global commerce every day and cost billions.
2The White House has given the Department of Homeland Security cybersecurity oversight of .gov and Critical Infrastructure.
3 DHS regulates 18 Critical Infrastructure Sectors including energy, financial, communications and transportation.
4 Numerous bills in Congress seek to increase the government's and private sector's ability to prevent, prepare for and respond to cyber attacks.
5 Some legislation would impose voluntary or mandatory standards on the private sector to prevent cyber attacks.
6 Some legislation seeks to require companies to disclose information about attacks.
7These requirements could conflict with existing privacy policies.
8 Other bills would allow the president to declare a national cyber emergency for a specific sector.
9 The White House's release of proposed legislation goes further, including privacy, data breach and data security sections with new regulatory authority to DHS and the FTC.
10 Legislation must balance security and privacy, enabling global commerce while preventing catastrophic attacks.

FROM THE EDITOR

Mothers of Invention

Though we've officially moved out of the recession that rocked the globe the past few years, the recovery has been anything but smooth. Natural disasters, political unrest and residual funding difficulties—at federal, state, municipal and corporate levels—have made even the most Pollyannish of forecasters scratch their heads.

Still, as many of the articles in this issue explain, the worst of times may well be spawning the best of times, thanks to a mixture of creativity, resourcefulness and plain old-fashioned due diligence.

So, as Patton Boggs partner Robert Tompkins notes, companies unable to get funding due to both belt-tightening and the elimination of earmarks are learning to monitor the agencies that control that funding and understand their priorities in order to, as Patton Boggs partner Jeffrey Turner adds, position themselves to help meet those agencies' needs. Contractors that had come to depend on a government market that is now shrinking are finding an upside in the cost-effective acquisitions of other contractors. Cities facing rising costs and falling tax revenues are, according to Patton Boggs partner Marek Gootman, exploring strategies such as "industry clusters" and taking a fresh look at private-public partnerships. For many states, Patton Boggs partner Michael Richman suggests, bankruptcy might be a creative, forward-looking option.

It seems, overall, that this is the time to invest. There may be political unrest in the Middle East, for example, but the region's GDP is growing faster than that of the U.S. and Europe, and along with that comes opportunity for investment and growth. Similarly, adds Patton Boggs partner Jude Kearney, "the golden years of investment in Africa are just starting." And those golden years, as so much of this issue points out, aren't limited to Africa.

- MIKE WINKLEMAN, Editorial Director

[Cover Story: The Worst and Best of Times]

Budgets have been slashed. Funding has been cut. States and cities are struggling. And yet...investment continues, opportunities abound, companies are growing. One key: targeting the right markets—whether you're investing overseas, looking for funding stateside or embarking on private-public partnerships to fund long-delayed infrastructure projects. Here's a look at some creative thinking that's helping states, cities and companies achieve their goals.

[Currency]

Scrambling for rural phone subsidies. Starting conversations between regulators and Congress. Moving free trade out of limbo. Casting doubts on long-held gene-based patents.

[Capital Thoughts]

Anne Sutherland describes the impact of a change in compensation rules. Steven Museles and David Martin examine misperceptions about middle-market lending. Chip Cannon looks across the Valley of Death.

[Q&A: Ralph Smith]

The general counsel of the University of Alabama System talks about the impact of recent tornadoes—and how the university has bypassed government cutbacks to achieve excellence.