A Concerted and Cogent Effort Needed to Establish Equality in Society Essay Example for Free

A Concerted and Cogent Effort Needed to Establish Equality in Society Essay The concept of establishing equality among all members of the society is as old as the history of civilization – the list of dos and donts of several cultures also emanate out of that, before the dominant groups of the societies convert them as doctrines to maintain their dominance over the minorities. However, the voice of the concerned humans also rise from time to time, like what is now being heard under the titles like human rights or living wage. Though usually dubbed as a means of meeting the basic living requirements, living wage aims at facilitating humans to earn their lives to fulfill what Maslow (1943) described in his hierarchy of needs, which comprises of five sets of needs such as basic needs (air, water, food, clothing and shelter), safety and security needs, social needs, esteem needs and self-actualization needs. Thus the concept of living wage raises issues of human rights with special emphasis on the right to survival and dignity. This article thus explores three situations depicted by three researchers to underpin the drivers of inequality in general. India is Plagued by Caste-concept and Exploitative Colonial Ruling Style In spite of being officially a staunch supporter of human rights with a clear backing from its constitution, India is still plagued by the legacies of the Hindu caste system and exploitative format of British ruling style, if the findings of Channa (2010) have anything to go by. He points out with evidence that there is a huge gap between the constitutional vision and the ground-level realities regarding the social and economic situation in India, where it clearly fails to reason why the majority of its population still reels under below poverty line, save providing living wage. Channa points out that legislation or legal strictures prove insufficient against the power of social will in India, which needs to be transformed to a state where the dominant groups of the society will unlearn the caste and exploitative colonial ruling concepts and perceive the real-time need of restoring the human status of its fellow countrymen. South Carolina Suffers from Contradictory Legislations The issue of living wage gets another dimension when it is seen from interpretive and political economic anthropological perspectives, where Kingsolver (2010) comes up with the instance of South Carolina, the area which tops in the number of people living in poverty due to high unemployment rate. Here the solution lies in enforcing legislated living wage that would prioritize human needs over the issue of earning profit. Kingsolver argues that the elimination of contradiction in the laws on tax or right to work appears to be the first step towards achieving a legislated living wage, otherwise the age-old conflict between the logics of social welfare and the welfare of capital will continue to be at loggerheads in this region. Exploiters in the Avatar of Corporate Giants Bensen (2010) shows how biocapitalism of the corporate giants like Philip Morris is actually a veiled threat to the normative functioning of the society, where it violates not only the ethical standards of living, but also carries on with the tendency of exploiting the human capital, let alone ignoring the issue of social equality. For example, the placement of tobacco auction warehouses as well as the leaf-processing plants in North Carolina are strategically placed in predominantly Black residential areas to get low-skill workers at a minimum rate and to profit more by saving the expenditure on workplace conditions. Conclusion All the three papers reviewed above analyze social dynamics of stigmatization under different contexts, where India suffers from the legacies of age-old caste system and exploitative British ruling strategies, while North and South Carolina suffer from racial discrimination and corporate manipulation. Such state of affairs only consolidates the impression that rules to establish human rights cannot be effective unless the mindset of the dominant groups are transformed, and for that matter, UN should steer a cogent and cohesive campaign across the globe on establishing human rights. References Benson, P. (2008). Good clean tobacco: Philip Morris, biocapitalism, and the social course of stigma in North Carolina. American Ethnologist, Vol. 35, No. 3, pp. 357-379. Channa, M. S. (2010). What do people live on? Living wages in India. American Anthropological Association, Vol. 31, No. 1, pp. 15-28. Kingsolver, A. (2010). Living wage considerations in the right-to-work state of South Carolina. American Anthropological Association, Vo. 31, No. 1, pp. 30-41. Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50, pp. 370- 396.

Impact of Unemployment on Economic Development

Impact of Unemployment on Economic Development Unemployment has become an issue of major concern in different countries this is as because a lot of individuals are ready and available to work but are not able to secure this job opportunities. Different studies and expert analysis on Economics have discovered the various reasons as well as effects that unemployment has caused and have made effort to resolve some of the problems. the irregular recover in economy as well as downward successive review in the growth of economy and projections has made substantial impact on the situation of employment on global scale. The report of the International Labour Organization ILO(2014, P.11) observed that around the world, there are over 200 million people who are unemployed as at 2013, this an increase of nearly 5 million compared with the year before In many countries, competition in the market is a major cause since the employment opportunities are few. As a result the few opportunities have too many qualified individuals chasing it Nitzan (2011, p.4) compared unemployment and labour market with the case of demand, supply and price index Scale of the problem and Evaluation Unemployment and food price Inflation: Unemployment has been cited as being a major social evil; a cause the rise in poverty. It produces social as well as economic effect which also is a major issue of society. The problem of poverty among those who are unemployed is often very high due to the fact that these persons are not able to have a sustainable means of income. Looking at it from the social angle, there is an increase in illegitimate means of earning a living. If you consider an environment with high unemployment rate, you will notice that such place has increase in various social vice like gambling, robbery, bribery, prostitutuion etc. This accounts for the social insecurity issues created by unemployment (MCgrath 2012, p.1) Youth unemployment: loss of resources particularly human resources is another problem unemployment creates. With millions of able bodied men and women not able to put their skills and talent to use. This effect makes the persons unproductive, thus making the economy suffer in not using those productive abilities. Such economy experiences slow growth at the various sectors; the tertiary sector being the most affected as a result of the sector not getting enough funds to sustain it. A further impact is the slow rate of self-employment as savings is not easy for the large population of unemployed thus they have little or no capital for investments. The situation of unemployment in a society will greatly impoverish the citizens as employers tend to take advantage of the situation to pay very small for labour. Such economy experiences a devaluation of labour as the employers take the upper hand. Economic growth in certain industries: when theres a boom in some industries, there is sudden influx of people to that industry. It will not be easy to accommodate an increasing population of people who want to be part of that sector. For example an economic growth in the textile industry will increase the rush into that sector, which will often force individuals to focus attention in the textile industry and ignore skills available in other sectors. With such push, unemployment will gradually set in first for that industry and later on due to reduced skill available for the other sectors, unemployment spreads to other industries. Causes of the Problems The demand-side causes are: Economic Cycle: The Competition for labour is the reason unemployment seems to have stronghold in many economies. Since opportunities get fewer with increasing population. The result of this is that for every available position, there are several qualified individuals and as one person gets the position, another becomes unemployed. Indeed the present shift in labour demand has worsened the situation even more, as technology driven labour is taking over people driven labour thus more people redundant as one machine replaces the task of human effort. Employers consider the technology driven labour of greater benefit since the idea of multi tasking also encourages on man operating more than one machine Lack of Government investment and Spending: Sometimes the government fails to make investment that provide job opportunities while other times the government policies do not provide conducive environment for private sector investment. Supply Side causes include: Rising global commodity prices, high labour costs and poor workforce skills and lack of infrastructure. Apart from the demand and supply side causes of unemployment the exchange rate from one country to another can greatly affect the unemployment rate in that region. For example, due to the technology driven labour, a lot of employment opportunities are open to countries where labour is cheaper, thus causing an increase in unemployment in the countries where labour is emigrating (ILO 2014, p.18). This migration of labour from higher economies to the lower economies places competition of employment on the higher economies as employers keep looking for economies with cheaper labour. One of the theories on unemployment rate and its relationship with the growth of economy is the Okuns law.Okuns law is a statistical analysis of the relationship that exist between the unemployment rate of a country and the economy growth of that country. (Fuhrman 2015, p.1) Okun ’s law as explained by the St Louis Federal Reserve Bank is expected to identify t he extent of the gross domestic product (GDP) of a country could be lost as a result of the unemployment rate rising more than its usually rate. Furthermore, it explains that the idea behind Okun’s law is that the amount of labour depends on output. Which implies that there exist some positive relation between employment and output (Fuhrman 2015, p.3) that is: total employment is equal to the subtraction of the unemployed from labour; thus a reverse relationship between unemployment and output. The most significant of these problems are exchange rate and the competition from the lower wage economies. The policies that will be most effective in dealing with these problems vary according to the problem. For example for Structural unemployment Investment in education and training to give workers new skills will effective. Others include Cyclical unemployment caused by a fall in consumer spending will require reduction in income tax rates which is a Fiscal policy (ILO 2014, P.36) For Cost-push inflation caused by increasing labour costs an effective policy would be to encourage immigration and investment in technology (Nitzan 2011, P.7) For the problem slowing economic growth caused by falling exports, stimulating domestic consumer spending and finding new export markets When Fiscal Monetary policy are implemented the following are possible effects Expansionary policies are likely to: Increase economic growth, reduce unemployment, and increase inflation. It was A.W. Philips(as cited in Nitzan 2011, p.3) who first examined the relationship between inflation and unemployment Contractionary policies are likely to: Reduce economic growth, increase unemployment, and reduce inflation For long term Short term or Long term effect can produce some of the effects below as further illustrated by the diagram below Demand-side policies can move an economy closer to its’ Production Possibility Frontier assuming where all resources are used Supply-side policies are needed to expand the productive potential of the economy i.e. move the PPF outward Conclusion Unemployment affects the economy in many different ways but it can be minimized by strategic Government intervention. There are policies that help to contain the effect of unemployment considering that some of the causes can be handled with some of the economic policies. However the choice of the policy has to be analyzed carefully to produce relevant result. For example reducing income tax will only increase consumer spending if the marginal propensity to consume is high. ILO (2014, P.27) pointed that Policies to reduce inflation might have a negative effect on unemployment economic growth (and vice versa) and improving education might solve the problem in the long term but not in the short term REFERENCE LIST Fuhrman, R 2015, Okuns Law: Economic Growth and Unemployment: Retrieved from http://www.investopedia.com/articles/economics/12/okuns-law.asp ILO 2014, Global Employment Trends 2014: Risk of a jobless recovery: International Labour Office. Geneva Mcgrath Native Council 2012. Causes and Effect of Unemployment: Retrieved from http://mcgrathnativecouncil.org/interesting-academic-essay-example-on-unemployment Nitzan, J. 2011, Mcroeconomic Perspectives on Inflation and Unemployment, McGill University 855 Sherbrooke St. West Montreal

Civil Disobedience Essay example -- Papers Thoreau Laws Morals Essays

Civil Disobedience Works Cited Not Included I believe that civil disobedience is justified as a method of trying to change the law. I think that civil disobedience is an expression of one's viewpoints. If someone is willing to break a law for what they believe in, more power to them! Civil disobedience is defined as, "the refusal to obey the demands or commands of a government or occupying power, without resorting to violence or active measures of opposition" (Webster's Dictionary). This refusal usually takes the form of passive resistance. Its usual purpose is to force concessions from the government or occupying power. Civil disobedience has been a major tactic and philosophy of nationalist movements in Africa and India, in the civil rights movement of U.S. blacks, and of labor and anti-war movements in many countries. People practicing civil disobedience break a law because they consider it unjust and hope to call attention to it. In his essay, "Civil Disobedience," American author Henry David Thoreau set forth the b asic tenets of civil disobedience for the first time. The independence of India in the 1930's was largely a result of the nonviolent resistance by Mohandas Gandhi to the British colonial laws. In the United States, the nonmilitant efforts of Martin Luther King, Jr., helped bring about civil rights legislation. There are numerous examples that illustrate how civil disobedience is justified. In late 1955 Rosa Parks, a leading member of the local branch of the National Association for the Advancement of Colored People (NAACP) was jailed for refusing to give up her seat to a white passenger. I don't blame Parks at all for what she did. The African American people had to take a stand on some issue... ...because it is not right to ban a piece of literature no matter how unethical it is. These laws limit human freedom and hinder spontaneity. I think there are always times when disobeying a law is morally justified. "They are sometimes unfair and repressive; common sense, social custom, and religion already provide enough guidance; and morality can never be legislated" (Kessler 154). Thoreau argued that any given law is not as high or not above what you believe in or what your conscious tells you is right. "We all have a moral duty to obey our consciences" (Kessler 154). I believe it is very clear how I stand on the subject of civil disobedience. After researching this topic and formulating my own opinions I have learned a great deal about my morals and myself. It simply shocks me when I think of the accomplishments of people like King, Gandhi, and Thoreau.

Moniza Alvis Presents from my Aunts in Pakistan Essay -- English Lite

Moniza Alvi's Presents from my Aunts in Pakistan Moniza Alvi was born in Lahore, in Pakistan, the daughter of a Pakistani father and an English mother. She moved to Hatfield in England when she was a few months old. She didn't revisit Pakistan until after the publication of her first book of poems, The Country over my Shoulder, from which this poem comes. The poet says: 'Presents from My Aunts... was one of the first poems I wrote - when I wrote this poem I hadn't actually been back to Pakistan. The girl in the poem would be me at about thirteen. The clothes seem to stick to her in an uncomfortable way, a bit like a kind of false skin, and she thinks things aren't straightforward for her. I found it was important to write the Pakistan poems because I was getting in touch with my background. And maybe there's a bit of a message behind the poems about something I went through, that I want to maybe open a few doors if possible.' Subject Matter What is Presents from my Aunts in Pakistan all about? * The speaker in the poem, who is of mixed race, describes the gifts of clothes and jewellery sent to her in England by her Pakistani relatives. * She is drawn to the loveliness of these things, but feels awkward wearing them. She feels more comfortable in English clothes - denim and corduroy. * She contrasts the beautiful clothes and jewellery of India with boring English cardigans/from Marks and Spencer. * She tries to remember what it was like for her family to travel to England. * Her knowledge of her birthplace, which she left as a baby, comes to her only through old photographs and newspaper reports. * She tries to imagine what that world might be like. Glossary Sa... ...n Hatfield at that time, of a mixed race background or indeed from any other race, so I felt there was a bit of a blank drawn over that. I think I had a fairly typically English 50s/60s upbringing. When I eventually went to Pakistan I certainly didn't feel that was home, I'd never felt so English. But I never feel entirely at home in England, and of course I'm not part of the Asian community at all. And it feels a bit odd sometimes that because of the group of poems that I've written about my Asian background, I sometimes tend to be identified as a black writer. I tend to think of England as being very culturally mixed now. But it's important to know where you come from, which is perhaps what I was lacking as a child. I think it's important to know what has gone into your making, even quite far back, I think it gives you a sense perhaps of richness.'

English Research Paper Social Change

The idea of social change is something that I would say, deep down, scares us all. When looking at two stories in particular you can see an evolution over the years. Saying this I wonder when you do look very closely at â€Å"The Lottery† by Shirley Jackson and â€Å"Shooting an Elephant† by George Orwell how much you will find alike, but also how much you will find different based on the time period in which they were written. Social Change is not something that’s easy for some people.However, it normally takes place over a time frame of years, therefore making it harder to notice when it is actually taking place. In today’s world, researchers and scientist have even been able to come up with ways in which they believe social change is taking place and can be predicted to an extent. â€Å"The Lottery† took place back in 1948, which is when it was written. Needless to say a lot of the social trends and social norms they had back then are not easily compared with the values of today’s society.What we call socially acceptable today is vastly different than what was acceptable in the 40’s. The values of society then were much more conservative. Today if I were to walk in on a social event like the lottery, wearing shorts and a t-shirt, I bet I would be the one selected to get stoned on the spot. Those days’s it was only acceptable for men to wear long pants and maybe a t-shirt. As the back ground of â€Å"The Lottery† is reveled, you are given more information on the social traditions of their fictional society.It makes you wonder if this is actually something that ever took place in history, or if it was something inspired by the culture of the 1940’s. Today we think of a lottery as being something were you have the chance to win money, but this story shows how different lotteries were then. In this story the author portrays â€Å"The Lottery† as an event were the entire village is gathe red in the courtyard to draw a piece of paper out of a hat. If you were lucky enough to choose the piece of paper out of the hat with a large black dot on it, then you were not the winning a prize.The person who draws the black dot gots stoned to death. During the 1940’s World War Two was taking place. It makes me wonder why the author, Shirley Jackson, wrote a story about people coming together to decide who gets stoned to death (â€Å"America’s†). The activities of Adolf Hitler and the Nazi’s in Germany and the persecution of the Jewish community could have influenced the story line. Considering the story is about a community assembling and deciding at random who gets to die, World War II would be a fitting influence for the author. Shooting an Elephant† has a lot of similar social problems that â€Å"The Lottery† had, but in a very different context. The elements of peer pressure and social acceptance come out in the story. Both issues are still important in today’s society.This is based on my interpretation of the story, realizing how social change is an important part of evolution. The end of the story speaks volumes about why the young man shoots the elephant. The animal was no longer being destructive or harmful. He shot the elephant because people wanted him to. I often wonder whether any of the others grasped that I had done is solely to avoid looking a fool† is the last line from the story â€Å"Shooting an Elephant†. This is further evidence that the elephant’s death was a result of social pressures. Since there were two thousand people standing behind him, waiting on him to make a move, he thought he would look like a coward if he didn’t shoot it. The villagers wanted the elephant shot for it’s meat, not just because it was running through their village. It is safe to say that social pressures were major in this time period.The story actually takes place in 1936, when it was published. You can see that â€Å"the Lottery† and â€Å"Shooting an Elephant† take place around the same time period. The setting of the story is different, however, because it takes place in Europe, just outside of a small town called Burma. The social values are similar in each story, despite them taking place so far apart. In â€Å"Shooting an Elephant†, the elephant actually gets lose from its owner and goes on what is called a â€Å"must† (also known as a rampage).It is my understandings from the story that after elephants have been confined or locked up, they have built up energy that they must get rid of. This is why when the elephant gets lose, or brakes free from its chain, it goes through the village stomping people and tearing through the huts, knocking them down. However, the villagers never give a clear answer as to where the animal was eventually tracked down. Once the man asks for a rifle to kill the elephant, the people are follow ing him to see what happens. They do this out of greed, more than curiosity. They each want dibs on the best parts of elephant meat.This is an example of one form of social change, because in today’s world we can go to the market and get whatever it may be that we need. During the twenty first century, I cannot think of a time that humans in the developed world had to fight other humans in order for survival. Due to the fact, that back in the 1940’s you had to find your own food as it became available. Social change is something that is required for us to evolve as a human race. I believe that point is made clear based on the examples given in these two stories that took place back in the 1940’s.A great way to describe social change is by its definition: â€Å"structural transformation of political, social and economic systems and institutions to create a more equitable and just society (â€Å"What†). † If you pay attention to the part of this defi nition that says â€Å"equitable and just society† then you have more insight to â€Å"The Lottery† (â€Å"What†). All of the towns people may have believed that their form of â€Å"equal and just society†, of drawing from a hat to decide as to whom gets to die, is only way to make it fair. By doing this there could potentially be less acts of random violence.Social control can go hand in hand with social change. Various countries and religions have their own forms of social control. For instance, all Muslim women have to keep their faces covered when in public, and most European countries require you to have your government issued identification cards on you at all times. â€Å"Shooting an Elephant† provides some opposite examples to the definition given above. The village were the elephant was running rampant has political implications behind it. In social change you have the â€Å"transformation of politics† (â€Å"What†).This is t he number one force behind social change a lot of time. To be an elephant owner back in that time period you had to be some form of higher social class. The man working for him is the one that tracks down and ends up killing the animal. He states in the story how he does not want to kill the animal, but felt as if he had to in order to survive himself from the pressure of the villagers. With two thousand people behind you, with their knifes ready to start prying the meat from the carcass of the elephant, you are more likely to chose what will pay off for you in the long run.Instead of waiting on the owner of the elephant to decide what to do when he was confined in the field, he decides to shoot him. Coming down to the fact of did he do what was best for the people? Or did he do it to raise his own political standing with them? Leadership is the number one role when it comes to the social model. Looking at the story â€Å"Shooting an Elephant†, and comparing it to the social change model, you can see the motive behind the man’s role as he takes a leadership position (â€Å"What†). Leadership is socially responsible, it impacts change on behalf of others† almost describes the actions taken during the time when the villagers are seeking the animal (â€Å"What†). The main epicenter of social change is just that, change. Directly in the center of the social change model you will see the word change with different leadership roles surrounding it. Secondly, you can see the same similar behavior from the mayor of the town where â€Å"The Lottery† took place. Enforcing the rules of such an event that takes place once a year, but is sought after to be an endless tradition, is not an easy task.Being the official, the mayor takes on the leadership role, also, not to mention the leadership role he is already in by the position he holds as mayor of the town. To keep the integrity of the lottery there are multiple rules in place to i nsure that it is fair for everyone involved. However, the major part of the social change model that does not fit is the change (Ryder). Any time in the story a villager brought up the fact that they thought the lottery should not continue, the mayor was out raged and spoke up to inform them that it must continue because it was a tradition.Social trends take place as a natural evolution over time, but it requires change in order for it to happen. Without the prospect of change nothing will ever evolve, leaving the villagers to repeat the same destiny year after year. Both Stories have their pros and cons, but there are two different form of social change taking place. The first story â€Å"The Lottery† is dealing with the aspect of leadership and how that leadership affects people of that community.Second, â€Å"Shooting an Elephant† deals more with the issue of pressure and influences from your surroundings. Both however come down to one main topic, and that is change . In Conclusion, social change and evolution is not something that is easy to process sometimes. You can clearly see by these two stories that evolution is self evident during the time of the 1940’s, by comparing the said evolution to recent items such as the social change model you can relate to the methods behind actions that were taken by characters in the stories.Social trend are not something that is easy to break away from. However, you can tell during â€Å"The Lottery† that there are people who are will to accept change and speak out for it! Without change we, as a society, do not have an option of social evolution for the better. With the understanding that change is not always for the better, bad change is what also helps us develop and learn from what we may call bad change at the time.

Import Substitution vs. Export Promotion

Import Substitution vs. Export Promotion Econ 240 Term Paper Group (19) Members: Amjad Hussain (13020031) Awais Javed (13020529) Fahd Mukaddam (13020407) Haider Shah (13020528) Hassan Jamil (13020023) Muhammad Bilal Ayub (13020413) Words (using page 2): 371*7 = 2597 IS vs. EP 2 How do the strategies of international trade affect growth? Why at times countries adopted different strategies of international trade? How does Import Substitution Industrialization weigh against Export Promotion as a trade strategy?How does the empirical evidence help us understand this? Trade strategies are classified into two broad strategies, outward-looking development policies and inward-looking development policies. Outward-looking development policies encourage free trade and free movement of the factors of production. While inward-oriented development policies encourage greater self-reliance and restricted trade. Within these two broad approaches lies the debate between Import Substitution (protectio nism) and Export Promotion (free trade).Import substitution (IS) is a well tested way to industrialization which has been followed by most of the currently developed and industrialized countries. Alexander Hamilton’s â€Å"Report on Manufactures† (1791) argued in favor of tariffs to protect American manufacturers from inexpensive imports from Britain. In the mid 19th century, Germany, Russia and Japan also practiced protectionism to develop their domestic industries. After the great depression of 1930’s, LDCs particularly Latin American and some Asian economies started practicing ISI and in 1960’s IS became a dominant strategy for development.However in the next decade, when industries protected through import substitution failed to achieve targeted productive and allocative efficiencies, countries switched to export promotion strategies. Hong Kong, South Korea, Taiwan and Singapore were among the first to adopt the export promotion strategy. Later, Chile , Thailand and Turkey also joined in. Over the years, the stance of countries has shifted from protectionism to free trade and globalization. So we will begin our paper by analyzing the arguments in favor and against ISI policies.Then we will discuss the benefits and drawbacks faced by the countries that switched to the export promotion strategy. The paper also explains the reasons for this transition. Finally, it concludes by giving empirical evidence of the real world regarding the effects of these strategies. It has always been in the vested interest of the economies to protect country’s large and strategic markets from foreign competition so that the local industry not only becomes self sufficient but also is in a position to induce industrialization led economic growth.In order to accomplish such goals, trends have shown (as mentioned above) countries’ increased dependence on Import IS vs. EP 3 substitution policies. Government plays a vital role in the implementa tion of these policies by imposing tariffs and quotas or altering the exchange rate and interest rate, using macroeconomic policies, to shield its local industries from the competitive foreign producers. Simultaneously, the foreign direct investments (FDIs) are expected to fill the gaps in technology and technical skills between the domestic and foreign industry.The introduction of IS policy can be attributed to the Infant Industry Argument (Import Substitution In General Equilibrium can be used to demonstrate that how the IS works in infant industry) 1, which favors the protection of domestic industry from international competition. The aim is to remove distortions between the out-dated locally produced goods and the industrialized high quality imports of similar products. Policies which governments adopt includes introduction of tariffs 2; discouraging cheaper import and at the same time encouraging production of the same goods domestically.Mostly consumer goods are produced under this strategy which ensures that the country is capable of meeting its basic necessities. Moreover, these types of goods require considerably less advanced technology, making the policy easier to adopt. Aristotle has said â€Å"What we have to learn to do, we learn by doing†; import protection is the best way to initiate this learning process because the economy is now producing goods that it previously imported – a process of development and learning by doing sets up. The economy can then move towards higher efficiency.This eventually improves the balance of payments as fewer consumer goods are now imported. It is essential that the learning process is followed by accumulation of capital. This requires the manipulation in Interest rates so as to encourage savings, and these savings can then be invested back in the protected industry. There are some macroeconomic gains associated with this policy, including reduced unemployment and increased tax revenue for the govern ment; increased local production is expected to generate job opportunities and at the same time, tariff on imports become a source of income for the government. See Appendix 1. 4. 1 & 1. 4. 2 See Appendix 1. 2 2 IS vs. EP 4 However, the IS policies have been criticized by economists for various reasons. According to them, the protection provided to the industries makes the industries inefficient because the firms start to rely on the provision of subsidies. They have no incentive to cut down costs to achieve minimum efficient scale of production and to increase productivity. Bhagwati in â€Å"Import substitution – a survey of policy issues† said that, â€Å"†¦such sheltered monopoly positions in import substituting industries are the prime cause of low productivity†.Also, the government protection to infant industries is for a limited time period, in which most industries that lurk behind the wall of tariffs never grow up. In import substitution, main focus is on the consumer goods, and therefore the prospects of economic growth are relatively short-lived. For countries to achieve long term economic growth, structural shifts are required towards the production of capital-intensive goods.However according to Jaleel Ahmad, the protection requires normally zero or low tariff on import of capital goods, hence discouraging development of forward linkages – manufacturing of the capital goods by local industries. Also for Import Substitution to be successful, according to Hirschman, forward and backward linkages need to be well-developed for the industries. This shows that for a country to have a manufacturing sector free from international dependence, it will need to develop other industries in consumer durables, non-durables, intermediate and capital goods.Another argument against ISI strategies is that it leads to the worsening of Balance Of Payments (BOP) due to the overvaluation of exchange rate, causing the prices of exports to rise but at the same time lowering the prices of imports. As a consequence, producers of exportable goods become less competitive in world market, causing a negative impact on the BOP. Keeping in mind the undesirable impacts of IS policies, economists felt the need to revise the trade strategies.Trade theorists therefore attempted to elucidate as to why nations engage in international trade, what combination of goods and services they trade, and how firms and consumers gain or lose from trade. It was observed that numerous international trade models rely primarily on the theory of Comparative Advantage (Appendix 1. 1), which describes trade patterns under assumptions of static conditions that hold the factors of production in fixed supply (Perkins). Theory of comparative advantage principally asserts that every country irrespective of its size can benefit from trade. Trade driven through exports of goods in which the country has aIS vs. EP 5 comparative advantage, benefits the count ry the most. Therefore an export promotion trade strategy involving goods that require raw material, that are abundant in supply, will allow a country to grow more rapidly as stated by the Hecksher-Ohlin model. Proponents of EP mainly argue that free trade utilizes previously unused resources such as land and labor, creates a vent for surplus of unused resources and allows a country to operate on its Production Possibility Frontier (PPF). In contrast, before the opening up of the economy, the market is constrained to the domestic consumers only.Once a country engages in free trade it acquires the opportunity to earn a global market share, thus earning higher revenues. As the market of local industries expands, demand for labor increases which raises the employment level in the country. This increase in exports stimulates domestic investment (an injection in the circular flow of the income of the country) which gives a multiplied effect on the Gross Domestic Product (GDP) of the econ omy. Furthermore, the enhanced exports will lead to a greater demand of domestic currency in the exchange market leading to currency’s appreciation (given the floating exchange rate mechanism).According to the Marshall Lerner condition, which states that the sum of price IS vs. EP 6 elasticity of demand of exports and imports is lesser than 1 in short run, a currency appreciation will lead to an increase in the Balance Of Trade (BOT). 3 This relationship of BOT and time is shown through J-curve. An additional argument presented by the trade optimists states that the foreign exchange earned by selling different goods and services will relax the constraints of availability of financial capital or in other words, will fill the foreign exchange gap.This also helps in relieving the pressure on foreign exchange reserves built by the import of heavy machinery and capital goods. A further extension of export promotion policy is the process of export development. It involves innovatio n (of new export products) and penetration into new markets. Learning process is instituted and hence increased productivity is observed. This initiates a process of transfer of technology and foreign investment from developed countries, helping the industry to become efficient and gain the economies of scale through mass production – lowering costs and increasing profits.The increased profits of the industry promote higher savings and as the Harrod-Domar Model suggests, an increase in savings will lead to an increase in the growth rate of the economy. The Export promotion strategy is not free of criticisms as one might expect. The leading criticism of opponents of export promotion strategy is the sluggish growth in the demand of the primary goods. As developing country relies mainly on the export of primary goods, the sluggish growth enhances the volatility in the earnings of the economy. The Prebisch Singer Hypothesis explains this phenomenon in terms of income elasticity a nd price elasticity of demand.The thesis postulates that the price elasticity and income elasticity of primary goods are both inelastic i. e. less than 1. As the national income of the developed countries increases, the demand for the primary goods does not increase proportionately. This is also stated by Engel’s Law. A decrease in the prices of the exports will not lead the quantity traded to increase by the same percentage, thus resulting in fall of the exports revenue. This fall in exports revenue leads to a deterioration of Terms of Trade (TOT) of the country.Other factors that explain the slow growth in primary goods exports include the development of synthetic substitutes and protectionist measures taken 3 See Appendix 1. 3 IS vs. EP 7 by the developed countries. The population growth of developed countries being at replacement level translates into a stagnant demand for primary exports. Empirical evidence shows that heavy reliance on the export of the primary product m ay actually result in a phenomenon known as the Dutch disease; a country rich in natural resources actually suffers from slower growth as a result of that rich endowment.This is one of the often repeated facts of history when criticizing the strategy of export promotion. It was mentioned earlier that an appreciation in a country’s currency will lead to an increase in BOT, but this will only remain true for the short run. In long-run the sum of elasticity of demands of exports and imports becomes greater than 1 which consequently causes a fall in the net exports. Therefore the aforementioned argument is valid in the short-run only as in long-run it balances out its own effect on BOT 4 as shown below with the aid of diagram.In addition to the criticism mentioned earlier, Export Promotion strategy may lead to higher budget deficit. It is a usual practice of the governments to subsidize the exporting industries. These subsidies will be financed either by an increase in taxes or b y reducing the expenditure on public and merit goods such as health, education, infrastructure, national defense and other social services. Due to this practice, the development side of the country is often sidelined or overlooked.Example of China can be the best evidence for our claims about Export Promotion here. China was a closed economy until the 1970s. Nicholas R. Lardy in his article, Trade liberalization and 4 See Appendix 1. 3 IS vs. EP 8 its role in Chinese economic growth, states that around 1970s, China’s export goods had no comparative advantage and at the same time, high level of control on imports was also imposed. Hence quoting from the article, â€Å"China’s share of world trade dropped markedly, from 1. 5 percent in 1953 to only 0. 6 percent in 1977†.However, during the 1980s the process of trade liberalization began and by the time china entered WTO in 2001, her structure of trade policy was completely changed. China fully realized the signifi cance of the comparative advantage principle and concentrated on export of goods that were labor intensive in production, as the article states that â€Å"China’s fastest growing exports have been labor-intensive manufacturers— textiles, apparel, footwear, and toys. Between 1980 and 1998, export of these items rose more than ten-folds, from $4. 3 billion to $53. 5 billion†.Due to the trade liberalization, China experienced high rates of economic growth. Empirical evidence strongly suggests that pragmatism and eclecticism rules over any other single purpose approaches to trade. Thinking just in terms of an all out import substitution or an export promotion strategy can pose as an impediment to one’s clear understanding of the relationship between these strategies and growth. In future it would be better to avoid labels and to construct strategies from the components of either of these trade policies that seemed to have worked.Import substitution with its d ivorce of production decisions from market conditions seems to have lost its modern day relevance. In contrast, export promotion with its orientation towards world markets appears to be in line with the new phenomenon that is globalization. No single optimal prescription in terms of trade policy can be devised for the countries at large due to the dynamism of international trade. No strategy can be concluded as the best strategy for a country but what can be said is its relevance to a country at a point in time.Although empirical evidence shows that export promotion has helped countries like China to grow rapidly and improve its trade positions but we can also find other countries which developed after adopting import substitution policies like Latin American countries. This suggests that country have to adopt a trade strategy which is most compatible for their country at that time so that they can achieve maximum gains from trade. IS vs. EP 9 Appendix 1. 1 Comparative Advantage The ory: The concept of comparative advantage, attributed to David Ricardo, refers to the ability of a country to produce at a lower opportunity cost.It is the ability to produce the most efficient product as compared to other countries. It is best explained by a two-good, two country framework where countries differ in particular factor productivity or factor endowments. This theory explains that it is welfare enhancing for both countries to specialize in one good and import the other. The conclusion drawn from this theory is that each country gain by specializing in the good where it has comparative advantage and trading that good for other. 1. 2 Trade protectionism and Tariffs:Government impose trade restrictions in form of tariff in which it collects tax on goods imported by the people, thus discouraging the people to import goods and encouraging the local industries to produce good quality substitute goods. Introduction of tariff increases the world price, which reduces the amount of imports and increases the amount of locally consumed products. IS vs. EP 10 1. 3 Inverted J-curve for revaluation of currency: The inverted J-curve refers to the trend of a country’s trade balance following a revaluation or appreciation of the currency.A revalued currency means that exports are more expensive for the foreign countries, but as in the short run demand for the more expensive exports remain price inelastic so the quantity demanded for exports remains same although foreigners are paying higher prices. This leads to the improvement of balance of trade. Over the long term, as the foreign consumers are able to switch to the other goods, the quantity demanded for exports becomes price elastic so reduction in the export volume and hence export revenues.This leads to the deterioration of balance of trade and the gains in the short run are off-set by the losses in the long run. In case of devaluation of currency, there are opposite affects. IS vs. EP 11 1. 4 Infant In dustry Argument(ISI in general equilibrium) : IS vs. EP 12 From diagram 1. 4. 1 it can be seen that before the imposition of tariff the country was producing at point A while consuming C amount of goods under world terms of trade (favorable to its export).But after the imposition of tariff, production moves towards point B where more of the importable and less of exportable goods are being produced. Assuming that this does not affect the world prices, trade will take place at same TOT. So the new consumption is indicated by point E along the line BD (parallel to line representing world TOT). Initially, by practicing ISI polices, both consumers and trade welfare has fallen due to lower consumption and fewer imports and exports (BE

Women Are Not The Only Victims Of The Patriarchal Society

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Good Stuff And Bad Stuff Happens - 848 Words

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