Organization Art of Strategic Management †MyAssignmenthelp.com

Question: Talk about the Organization Art of Strategic Management. Answer: Presentation: As per Randolph (2013 association configuration characterize the way where exercises, for example, task allotment, coordination, and oversight are done in a way which can make an association to achieve its objectives and target. Jay Galbraith's Star Modelwhich comprises offiveelements: forms, structure, prizes, individuals, and methodology. Appropriate use of these components can empower me to make the association that I work with to accomplish key adequacy. For example, I can utilize procedures to guarantee it has adequate procedures that permit undertakings to be finished without difficulties. As indicated by Pandit (2017), legitimate asset portion empowers associations to have a fitting work process, by permitting assignments to move from one phase to the next. Improving procedures can upgrade the associations key plan by guaranteeing all areas stays dynamic, and errands are finished quickly. Aside from making assignments to spill out of in the necessary stages, executing appropriate procedures can likewise upgrade the accessibility of data over all territories, consequently settling on it conceivable to settle on choices and take activities on issues that should be tended to. The other way I can utilize this model is through guaranteeing workers are remunerated to feel increased in value. Powell (2014) insists that when representatives feel an association remember them, they feel glad to be related with it, and consistently submit their endeavors towards better execution. This causes the firm to lessen turnover rates and furthermore to improve profitability. Prize additionally helps in aligningthe objectives of workers with those of the association, consequently machining it feasible for the firm to achieve its targets. Having hierarchical objectives that coordinate those of the worker likewise makes it simple for the administration to think of systems that can trigger better execution, and furthermore to actualize change with insignificant odds of obstruction. I would likewise utilize this model to actualize a system that guides the association to accomplish its objectives and goals. As indicated by Pandit (2017), methodology can change an association by setting a way that can be utilized to yield items or administrations that can fulfill its customers. It likewise assumes a key job in making a firm to achieve its crucial sketching out the strategies that the administration can use to accomplish its objectives and destinations. Actualizing a procedure in this association will likewise make its administration to stay dynamic in coordinating the other staff individuals in a way which can improve the firm to acknowledge execution. Actualizing better structure in this association can likewise help it to improve its key adequacy. In light of Jay Galbraith's Star Model, this component is related with the way in which force and authority passed or practiced in the association. Maranville (2011) confirms that appropriate structures in associations lead to better execution since it makes all offices to do the correct things. To guarantee this association has a structure that can yield positive outcomes, I will guarantee there are various degrees of the executives, and each level is made of experts who depicts great authority characteristics. From Jay Galbraith's Star Model, individuals assume a significant job in persuading errands to be finished in associations. In light of this explanation, I would guarantee the organization has sufficient workforce, and different viewpoints that improve representative exhibition and inspiration, for example, advancement, revolution, preparing, and advancement are thought of. I will likewise guarantee the human asset division has arrangements that are intended to urge worker duty to their occupations. References Maranville, S. (2011). The Art of Strategic Management. Diary of Management Education, 35(6), 782-807. Randolph, S. A. (2013). Key Thinking. Working environment Health Safety, 61(1), 54-78. Pandit, T. (2017). Book Review: Subhash Sharma, New Ideas In Strategic Thinking Management. Vision, 21(3), 336-337. Powell, T. C. (2014). Key Management and the Person. Key Organization, 12(3), 200-207.

Computer Information System Decision Support †Free Samples

Question: Depict about the Computer Information System for Decision Support System. Answer: Presentation Data the executives framework is significant for any business improvement framework and operational administration (Ward Peppard, 2016). ERP or undertaking asset arranging are significant for coordination of the business framework. ERP innovation and programming are arranged into industry explicit ERP, Web based or cloud administration ERP, private venture ERP, and PC trade ERP arrangements (Leon, 2014). The procedures are produced for the improvement of the security work in the business association. In this task the different sorts of ERP models are being broke down for understanding their effect on the business activities. The task comprises of scientific classification of the ERP model for understanding the examination between the obsolete data framework and the propelled data framework. Different models for ERP programming are appeared in the task and it would help in understanding the degree of the innovative advancement in data framework the board. The recommendation gave at the last piece of the report would be useful in giving the successful manners to making sure about the data framework for any business association. Order of various kinds of ERP programming There are different sorts of big business asset arranging programming utilized in combination of the business framework. They are arranged into industry explicit ERP, Web based or cloud administration ERP, independent company ERP, and PC trade ERP arrangements (Monk Wagner, 2012). Industry explicit ERP: the Infor ERP is an ERP arrangement that offers the answer for assembling and circulating procedure of the ventures (Nettstrater et al., 2015). The product arrangement has bolstered more than seventy 5,000 organizations across 200 nations. The business explicit ERP are utilized by enormous scope business elements as they need tweaked activities for their business needs. Electronic or cloud administration ERP: The progressed ERP framework are comprehensively sued by numerous organizations. In any case, there are a few organizations who utilize the electronic programming answer for the reconciliation of the business exercises. The cloud based server for business reconciliation has been named as SaaS or programming as a Service. The cloud administration ERP helps in getting to and putting away the information over the web based capacity framework. It would help in remote access of data and information. The cloud ERP gives the association quick and precise access to the data framework. Subsequently, it is perfect for all sizes of organizations. In any case, it is most appropriate for private company models. Independent venture ERP framework: this sort of ERP framework is useful for little tasks like deals and request the executives (Nettstrater et al., 2015). The HR the executives doesn't require huge information house for little scope business associations. Thus a lower scaled ERP framework is advantageous for giving usefulness to little scope business issues. It tends to be actualized at less expensive expense and is exceptionally perfect. PC trade ERP arrangements: Computer trade ERP arrangements are valuable for helping the business places in improving the productivity of the activities (Chang et al., 2013). The obsolete ERP are not at risk for giving the necessary usefulness to the business the board. The upscale and refreshed ERP framework would help in expanding the open doors for quickening the development of business. A few instances of various ERP programming are referenced underneath. Programming name Highlights SAP R/3 Utilized in more than 120 nations, more than 90000 clients, the administrations are acceptable and brilliant help SAP B1 Business one, reasonable for SMEs, minimal effort, 15 center modules, and compelling confinement of SAP B1 LN/BaaN Venture based discrete tasks, builds profitability, effectiveness improvement, and decrease in costs Microsoft Axapta or Dynamics AX 2009 Utilized for medium sized business tasks, improve profitability, utilized by discount wholesalers, administration organizations, and retailers Microsoft Navision or elements NAV Help with financing, producing, SCM, CRM, and investigation JD Edward undertaking one Incorporated applications, standard based innovation, and low all out expense Prophet Suite Financials for E business Pre incorporated money related procedures, dynamic planning, estimating and benefit examination Prophet individuals delicate undertaking Appropriate for complex organizations, improving the exhibition of the tasks, consistent internet providers, huge decisions of foundation, and heterogeneous applications Table1: Different instances of ERP programming (Source: Chang et al., 2013, pp.- 1461) Correlation of heritage PC framework and data security engineering Looking at heritage PC arrangement of Apple and Microsoft Correlation heading Apple Microsoft Operating system Macintosh short structure for Macintosh It alludes to the PC working framework made and licensed by Apple INC. Various forms of Windows like windows vista, windows 8, and windows 10. The IBM based working frameworks has been named as Personal PC or PC (Arthur, 2014). Cost PCs of Apple costing start from $500 or above. Macintosh small scale costs around $550, Mac Air scratch pad costs around $900, and IMac costs around $1100 (Arthur, 2014) Windows and its peripherals are less expensive in contrast with the Apple PCs. Work area PCs are practically 40% less expensive than Mac. Producers Apple Hewlett Packard, Dell, Asus, Lenovo, and Acer Designer Apple Microsoft, Ubuntu, and Sun Client Home and Business clients (center and specialized office) Business and home clients Similarity Can work a wide range of programming documents Macintosh based documents are not upheld Market reach Application engineers, visual originators, and music makers Scholars, understudies and for general clients Theft No need of actuation Novel initiation key is given Vault No Truly Table2: Comparing heritage PC arrangement of Apple and Microsoft (Source: Wonglimpiyarat, 2012, pp.- 101) Contrasting data security engineering of Apple and Microsoft Data security engineering of Apple The apple gadgets are the most made sure about gadget that is being utilized right now. The product comprises of information insurance class inside the layers of application sandbox, client segment, OS segment and record framework (Wonglimpiyarat, 2012). The equipment is ensured by utilizing piece that comprises of secure enclave and component. The Crypto motor and root declarations of apple are likewise utilized for shielding the gadget from any security issue. Data security engineering of Microsoft The data security utilized in Microsoft depends on the approach of danger displaying. Danger demonstrating is an examination of the hazard variables and dangers for data security. The four center components of danger model are forms, information stores, information stream and outside substances. The security organize engineering of data in Microsoft are shielded from Spoofing(S), Tampering(T), Repudiation(R), data disclosure(I), disavowal of service(D), and rise of privilege(E). Its abbreviation is STRIDE (Wonglimpiyarat, 2012). IPSec or transport security layer is utilized for confirmation of the gadget. The field door is secured by utilizing TLS RSA or PSK, RFC 4279, and IPSec conventions. Table3: Information security design of Apple and Microsoft (Source: Stewart, 2015, pp.- 29) Building up the scientific classification of ERP engineering The scientific classification of ERP engineering shows five essential components for the data the executives framework (Ali Cullinane, 2014). They are Management (Top Level), Strategic level, Tactical level, Operational level, and Integration and Realization. The board (Top Level): It comprises of Business class, Change the executives, Project the executives, and Training (Islam Nofal Yusof, 2016). The administration is the top generally level of the ERP engineering and it is answerable for all the tasks in the business association. The correspondence procedure in the ERP framework is significant as it holds all the tasks of the association together. Vital level: It comprises of Implementation process, Hiring method, Benchmarking exercises, and Evaluation of the obsolete procedure. Strategic level: It comprises of Client counseling movement, Software choice procedure, and actualizing approach for the data framework. Operational level: It comprises of Business process, Configuration of the data framework, finishing the exercises, and Going live that implies actualizing the data framework (Islam Nofal Yusof, 2016). Joining and Realization: In this progression the ERP design is actualized and the results from the framework are acknowledged for the business association. The scientific categorization of ERP design usage for improving the inheritance framework can be comprehended from the gave figure. Figure 1: Taxonomy of ERP design execution framework (Source: Roh Hong, 2015, pp.- 636) Recommendation for improving the data security framework The techniques that can be utilized for improving the data security and the board in the association are strategy advancement, instruction and preparing, authorization of the security model, data trade, and co-activity (Peltier, 2013). Approach improvement: The association must energize and receive the fitting laws, strategies, rules, and understandings for data security the executives (Gray, Miller Noakes, 2013). It would help in orchestrating the specialized gauges among the entire world. The advancement of the ability would be significantly impacted by the arrangement of approach for data framework. Instruction and preparing: it would help in advancing the necess

Into the Smoke

Into the Smoke I still remember when I first stepped into the arrivals hall at Tel Avivs Ben-Gurion International Airport. It was just past six in the morning and the airport was fairly quiet, being just past sunrise on an unremarkable Monday morning. I had just come off a pair of flights totalling twelve hours and spanning a full calendar day. I was more than 9,000 kilometres from home, more than ten times farther from my parents than I had ever been before. Coming to terms with the fact that this would be my reality for three whole months, I thought to myself: What on Earth am I doing here? That was two years ago. In retrospect, that was just how I felt on my first night in Baker; if I recall correctly, neither of my roommates had even arrived yet. But whatever slight concerns I had toward embarking on that new chapter quickly passed sometime early the following day. Now, I shudder to think of life before MIT, condemned to four years of state-mandated labour. And the apprehension I had in Tel Aviv â€" that too has passed. Before, travelling abroad was breaching my comfort zone; now, being abroad is my comfort zone. Since then, I have travelled to around twenty countries on my own (I suppose if youre bored you can guess a few): Now, Im spending my third consecutive summer interning aboard and approaching the end of an eleven-month stint in the UK, this time working at an engineering firm in London designing airports. Over the past six weeks, I have been researching, simulating, and writing about airports all over the world â€" so far I have worked on projects in Ireland, Oman, Fiji, Ghana, Bulgaria, and the Maldives. Unfortunately, I wont be joining my co-workers on their exotic business trips, but I did get five paid vacation days (ahem, American companies, whats going on?). I used three of those days to go to Norway, depicted in one of the photos above; in the photo, Im with my friend from Norway who I met two years ago in Israel! As several of my friends know, I love airports â€" I have half a mind to spend thirty days in Heathrow and write a book about it (or shoot a documentary, a lv ° 30 Days) â€" so this is essentially a dream come true. This experience also completes a span of organizations â€" in my three summers at MIT, I have worked at a university, a non-profit, and, now, a for-profit company. I still havent interned in a government job (a viable career option in my field), but the breadth of internship opportunities so far has been invaluable. And, of course, it doesnt hurt being in one of most cosmopolitan cities in the world. My five-kilometre commute to work takes a mere twenty minutes by bike, faster than the Underground and way faster than the bus. And along the route, when Im not doing my best to avoid double-decker buses and inattentive taxi drivers, Im treated to a tranquil route through Hyde Park and past Royal Albert Hall. Another great part about being abroad is the milieu of people you meet and get to know. Most of my new friends from the past year are â€" brace yourself â€" British, but this summer, Im sharing a flat with two Canadians, two Frenchmen (is that gender-neutral?), and a Spaniard. As a friend of mine said, its like the G4 (except Spains not in the G20, so its not, but lets not nitpick). New York is a great city, and there has long been a Battle of the Titans between the Big Apple and the Big Smoke (New York clearly wins in the nickname department), but its just so far from everywhere else. By the time you get to Mexico from New York, you could have flown from London over fifty countries and just as many languages. It doesnt help either that getting into New York is so much harder; my Spanish flatmate is trying to get a long-term visa to the U.S. and the first question they asked him on the phone was Have you ever planned to kill the president? Seriously; whos going to answer yes to that question? I personally am close to Edgware Road, a street that has been nicknamed Little Cairo, Little Beirut, Arab Street you get the point; perhaps akin to Chinatown in New York, the vast majority of people you see on Edgware Road are Arab. Nearly all the restaurants on the street are Arab, and many shops and banks â€" even British banks â€" translate their signs and notices into Arabic. Christian and Muslim evangelicals jostle for the same space outside the movie theatre, handing out promotional material in Arabic (but only, of course, if they think you can read it). And, the sidewalks are lined with tourists and locals alike smoking sheesha (although at London, not Cairo and Beirut rates). I dont know what it is, but theres an authenticity in Edgware Road that doesnt exist in New Yorks Chinatown (oh, and lets not even talk about Bostons Chinatown). Advantage: London.

The Red Turban Rebellion in China

Disastrous floods on the Yellow River washed away crops, drowned villagers, and changed the rivers course so that it no longer met up with the Grand Canal. The hungry survivors of these catastrophes began to think that their ethnic-Mongol rulers, the Yuan Dynasty, had lost the Mandate of Heaven. When those same rulers forced 150,000 to 200,000 of their Han Chinese subjects to turn out for a massive labor corvee to dig out the canal once more and join it to the river, the laborers rebelled. This uprising, called the Red Turban Rebellion, signaled the beginning of the end for Mongol rule over China. The first leader of the Red Turbans, Han Shantong, recruited his followers from the forced laborers who were digging out the canal bed in 1351. Hans grandfather had been a sect leader of the White Lotus sect, which provided the religious underpinnings for the Red Turban Rebellion. Yuan Dynasty authorities soon captured and executed Han Shantong, but his son took his place at the head of the rebellion. Both Hans were able to play upon their followers hunger, their displeasure at being forced to work without pay for the government, and their deep-seated dislike of being ruled by barbarians from Mongolia. In northern China, this led to an explosion of Red Turban anti-government activity. Meanwhile, in southern China, a second Red Turban uprising began under the leadership of Xu Shouhui. It had similar complaints and goals to those of the northern Red Turbans, but the two were not coordinated in any way.   Although the peasant soldiers originally identified with the color white (from the White Lotus Society) they soon switched to the much luckier color red. To identify themselves, they wore red headbands or hong jin, which gave the uprising its common name as the Red Turban Rebellion. Armed with makeshift weapons and farm implements, they should not have been a real threat to the Mongol-led armies of the central government, but the Yuan Dynasty was in turmoil. Initially, an able commander called Chief Councillor Toghto was able to put together an effective force of 100,000 imperial soldiers to put down the northern Red Turbans. He succeeded in 1352, routing Hans army. In 1354, the Red Turbans went on the offensive once more, cutting the Grand Canal.  Toghto assembled a force traditionally numbered at 1 million, although that is no doubt a gross exaggeration.  Just as he began to move against the Red Turbans, court intrigue resulted in the emperor dismissing Toghto. His outraged officers and many of the soldiers deserted in protest of his removal, and the Yuan court was never able to find another effective general to lead the anti-Red Turban efforts. During the late 1350s and early 1360s, local leaders of the Red Turbans fought among themselves for control of soldiers and territory. They expended so much energy on each other that the Yuan government was left in relative peace for a time. It seemed as if the rebellion might collapse under the weight of different warlords ambition. However, Han Shantongs son died in 1366; some historians believe that his general, Zhu Yuanzhang, had him drowned. Although it took two more years, Zhu led his peasant army to capture the Mongol capital at Dadu (Beijing) in 1368. The Yuan Dynasty fell, and Zhu established a new, ethnically-Han Chinese dynasty called the Ming.

Income Inequality and Economic Growth - Free Essay Example

Sample details Pages: 29 Words: 8608 Downloads: 8 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Chapter 1: Introduction Economic growth is the result of abstention from current consumption. An economy produces a variety of commodities, and then income is generated through sales of products. The very same income is used to buy other products which generate income for other producers. Don’t waste time! Our writers will create an original "Income Inequality and Economic Growth" essay for you Create order The very same income is used to buy a variety of commodities. The producers decide what to produce depending on their individual preferences and the distribution of income, initial endowments. In general, commodity production creates income, which creates the demand for those very same commodities. The cycle of production, consumption, saving, and investment that constantly regenerates itself is as old as human civilisation. In some cases, savers and investors are exactly the same individuals, using their own funds; in other cases, they are not. (51, Ray) The income inequality occurs because people in an economy differ from each other in many ways that are relevant to their incomes. These differences can be in forms of human capital (education and health), in where people live, in their ownership of physical capital, in the particular skills they have, and even in their luck. As explained above, economic growth and income inequality have a huge influence on each other. That is why th ere have been extensive studies in income distribution and its effect on other economic variables. Income distribution has always been considered to be an important topic because it tells us how incomes are distributed among the members of a population and allows the government to determine tax policies for redistribution to decrease inequality, or to implement social policies to reduce poverty. However, there are many debates about how reliable data is because they mainly are collected through surveys and the sources of errors are numerous. Furthermore, the income distribution measure, income gini-coefficient, does have its disadvantage because the best fit line method is used when representing the Lorenz curve which is used to calculate gini-coefficient. As outliers are ignored when a best-fit line is illustrated, the population in extreme poverty will not be accounted in income inequality measure. Thus, the measure of inequality may not be as accurate as it is believed to be. Bec ause of these data features, it is important to complement classical statistical procedures with robust ones. (Maria-pia, Victoria-Feser, 2000) No concrete theory yet exists to explain the relationship between income inequality and economic growth. Most empirical research on income inequality and economic growth tends to focus on imperfect market, the politics of redistribution, the size of the market. Benabou (1996) and others argued that imperfect capital markets can slow the economic growth by increasing the level of inequality. The main input of economic growth is investment generated by savings or borrowing credits. A result of imperfect capital markets is that the poor credit applicants with high expected rate of return projects have limited access to credit compared with rich applicants with the lower profitable projects. Therefore, the imperfect capital markets create a higher level of inequality and limit both quantity and quality of investments, thereby lowering economic growth. As capital markets are more likely to be imperfect in developing countries, this theory implies that developing countries economic growth is affected greater by income inequality than developed countries. Deininger and Squire find that land inequality reduces growth more in low income countries. However, the effects of income inequality on growth do not differ across high and low income countries. Moreover, contrary to the theory, Perotti (1996) finds that income inequality affects school enrolment more in rich countries than in poor countries. 143-144 I am particularly interested in how East Asian countries managed to develop so rapidly while maintaining low income inequality during late industrialisation. This is because compared with many orthodox economic theories and research based on many European and North American states during their industrialisation, what East Asian countries achieved is unprecedented. Furthermore, I believe that there are much more complicated reasons behind this unique achievement unlike the suggestions by 1993 World Bank Report, East Asian Miracle. In this report, the neoclassical economi sts in the World Bank gave much credit to the new developing theories and state-intervened economies on the surface, but they managed to transform and relate the state-intervention and policies in East Asia to the orthodox economic theory, and concluded that the rapid economic growth in East Asia is the result of market friendly economies and well-operated macroeconomic policies. They are not completely wrong but I have found that the explanations are very vague and inaccurate. There is no consistency in their arguments because they are trying to explain state-oriented capitalism in terms of market-led capitalism. In addition, there is an obvious cultural factor. Johnson and few other economists and historians argue that cultural difference between in the East and in the West might play a crucial role in explaining the East Asian Miracle. They argue that Confucianism confers certain advantages over other traditions in the quest for economic development. Because Confucian beliefs pla ce a high value on hard work, loyalty, respect for authority, and punctuality, these characteristics are thought to have facilitated the national consensus around high-speed economic growth in East Asian countries since the 1950s and 1960s. (Johnson, 1983:6-10; and the chapters by Lucien Pye, Gordon Redding, and Siu-lun Wong in Berger and Hsiao, 1988) I believe that an argument stated above can be a more influential factor of East Asian Miracle than arguments based on the orthodox economic theory. Thus, in this paper, I aim to investigate not only orthodox economic theories behind the East Asian development but also focus more on political economic perspective during the late industrialisation periods in East Asian countries, especially in Republic of Korea (Korea hereafter) and Singapore. The political economic view of East Asian countries were taken rather lightly compared with theoretical economic analysis because there have been only few social-politic studies in East Asia and t he presence of military regimes in many East Asian countries made it difficult for researchers to gather accurate information. The reason that I have chosen Korea and Singapore is that they both are in OECD countries, which makes it easier to collect more accurate and more quantity of data. Most of all, Korea and Singapore maintain the lowest income inequality level during the late industrialisation, but the income inequality level in two countries took a complete different direction after the Asian financial crisis in 1997/8. Singapores income inequality did get worsened but it still stayed at reasonably low level, whereas Koreas income inequality level shoot up and still remains quite high at this point. This paper will contain five sections. They are; introduction; orthodox economic theory behind income inequality and economic growth; political economic section which will illustrate the policies employed in Korea and Singapore to develop rapidly while maintaining the income inequ ality level low with empirical evidences; the effect that Asian financial crisis had on Korea and Singapore, especially on two countries income inequality level; conclusion. Chapter 2: Orthodox Economic theory In this section, I shall discuss the orthodox economic growth theories and whether or not South Korea and Singapore followed neo-classical theory guidelines. To begin with, I will explain what causes income inequality and the consequence of it. I will especially focus on the spill-over effects of income inequality on economic growth. The level of income inequality is one of the main economic concerns for economists as it is directly related to poverty and also has significant effect on economic growth: Assuming that the average level of income per capita maintains constant in a country, a higher degree of income inequality will mean that poor people are worse off. According to this observation with implication of Kuznets curve -the level of inequality rises until income per capita has surpassed a critical point- then in theory; economic growth can be bad for the population placed at the low end of income spectrum. Specifically, growths effect of raising the average level of income may be counteracted by a widening of inequality as the poorest people fall farther below the average. (Weil, Economic Growth) The empirical study carried out by David Dollar and Aart Kraay shows how average GDP and the degree of inequality work together to determine the income of the poor. Mexico in 1989 and South Korea in 1988 had almo st the same level of GDP per capita ($8,883 and $8,948) but because South Koreas income distribution is so much more equal than Mexicos, the average income of the poorest quintile in South Korea was twice as high as that in Mexico ($3,812 and $ 1,923). A similar effect is observed when comparing Taiwan and Mexico. This study illustrates that a countrys average level of GDP is the most influential factor of the incomes of the poor population. Thus, the empirical evidence suggests that poor people in a wealthy but unequal country are better off than poor people in a poor and egalitarian country. Dollar and Kraay assessed whether specific policies had different effects on the income of the poor versus overall income. Their key finding was that policies that affect growth for good or ill generally do not significantly affect the distribution of income. For example, rule of law and openness to trade raise overall income in a country and have positive but very minor effects on the share o f income going to the lowest quintile. Similarly, a high rate of inflation and a high level of government consumption are bad for overall income and reduce the share of income going to the poor.372 The orthodox economic theory on income inequality and economic growth is that highly unequal distributions are necessary condition for generating rapid growth. In fact, in the 1960s and then again to a more limited extent in the 1980s and early 1990s with the dominance of free-market economic theory and policy, the explicit and implicit acceptance of this proposition by economists from both developed and underdeveloped countries tended to turn their collective and individual attentions away from problems of poverty and income distribution. If wide inequalities are a necessary condition of maximum growth and if, in the long run, maximum growth is a necessary condition of rising standards of living for all, through the natural passed-down processes of competition and mixed economic systems, it follows that direct concern with the alleviation of poverty would be self-defeating. Needless to say, such a viewpoint, correct or not, provided a psychological, if not conscious, rationalisation for the accumulation of wealth by powerful elite groups. The basic economic argument to justify large income inequalities was that high personal and corporate incomes were necessary conditions of saving, which made possible investment and economic growth through mechanism such as the Harrod-Domar model. If the rich save and invest significant proportions of their incomes, while poor spend all their income on consumption goods, and if GNP growth rates are directly related to the proportion of national income saved, then apparently an economy characterised by highly unequal distributions of income would save more and grow faster than one with a more equitable distribution of income. 182 Simon Kuznets hypothesis also states that in the early phase of economic growth, especially that are growing at an abnormal rate, growth is generally associated with high levels of inequality. First, to generate the high savings rate that is a prerequisite of rapid growth, income, it is assumed, must be concentrated in the hands of relatively rich, whose marginal propensity to save is relatively high. Second, Simon Kuznets has suggested that as the labour force shifts from low-productivity sectors to high-productivity sectors, aggregate inequality initially increases substantially, decreasing only later. Contrary to this conventional wisdom, in East Asia rapid economic growth has been associated with relatively low and declining levels of income inequality. Improved equity is not unique to East Asia. What is unique is the combination of rapid growth with modest (and, in a few high performers, dramatic) improvements in equity and reduction in absolute poverty. Analysis of the high performing Asian economies has focused on their rapid growth over the past decades. Isolated studies on the distributive qualities of growth in a few of these countries exist, but not of the growth-equity nexus for the group as a whole. (Adelman and Robinson, 1978) The indicators show that the Asian hig h performers have been unusually successful in distributing the benefits of growth widely. (The key to the Asian Miracle, Making Shared Growth Credible, Jose Edgardo Capos, Hilton L. Root, 1996) The orthodox economic theory suggests that tax policies which directly affect saving rates will determine the economic growth rate depending on changes in the ratio of capital to labour. According to this theory, peoples incentives to save their income or wealth are influenced by the rate of returns to savings which effectively determines the income distribution. This theory would also imply that richer people are more encouraged to save their income or wealth in an economy with a regressive income tax. As a result of this, faster economic growth is achieved due to higher saving rates and thus higher level of investment driven by richer people. The rate of savings affects the long-run level of per capita income and, in many cases, the rate of growth of the economy. Thus the relationship between inequality and savings creates an additional channel through which inequality interacts with income and growth in income. The political force of the arguments presented here are also not to be taken lightly. The view that moderate or high inequalities in income distribution concentrate money in hands of those who are willing to save, accumulate, and invest, thereby boosting growth rate, has been used more than once to justify a hands-off approach by government in matters pertaining to redistributive taxation. However, there are opposing views as well, arguing that a certain degree of redistribution can actually enhance savings and push up growth rates. The effect of a reduction in income inequality on the rate of savings, and therefore in the rate of growth, is likely to be complex. High economic inequality might retard economic growth by setting up political demands for redistribution. Now redistributing might take one of two broad forms. First, a policy might aim to redistribute existing wealth among the broader population. A good example of this is land reform. If land is held very unequally, the government may have the option to simply confiscate land from large landowners and redistribute the confiscated land among smaller peasants or landless labourers. Likewise, it is possible to have confiscatory taxes that transfer large quantities of nonland wealth to the government, which are then redistributed to the poor. It goes without saying that the creation and implementation of such policies require extraordinary political will, as well as the availability of data on which to base such policies. Elected government officials with large land holdings are not uncommon, and even if they were uncommon, large landowners often act as vote banks, which swing the votes of an entire village or even a group of villages. In such situations, the enactment of a comprehensive land reform that would alleviate inequality becomes a very difficult proposition indeed. Even if the political will did exist, there are the almost insuperable difficulties of implementation. To redistribute large quantities of wealth, for instance, it is necessary to know who has the wealth. There exist enormous quantities of wealth that are not even subject to taxes, simply because the information base required to implement such taxes is nonexistent. Even when wealth takes the form of land, which is arguably highly observable, it is difficult to implement ownership ceilings. As a large and powerful landowner, I could parcel out my holdings in the names of various members of my family, so that each parcel fell below the legally imposed ceiling. Faced with these difficulties, most governments resort to redistributive policies that take an entirely different route: they tax increments to the shock of wealth, rather than the existing wealth base. Thus marginal rates of tax on high income purchase of various products, and business profits are taxed as well. These taxes, imposed as they are on the margin, tend to bring down the rate of investment and therefore the rate of economic growth. Chapter 3: Political economic theory In this section, I shall concentrate on three policies which were probably the main driving force behind rapid economic growth while maintaining low level of income inequality. They are Land Reform and Agricultural policy, Public-Housing policy and Education. These three political acts shaped up the main foundation in the early stage of economic development and because of this solid foundation; Korea and Singapore were able to achieve their current economic status in the international arena. Many people, in general, believe that industry, not agriculture, can only facilitate the economic growth and agriculture constrains the economic growth to some extent. I will attempt to argue that agriculture and industry are equally able to constrain or facilitate economic development, but that agriculture is perhaps more important in the earlier stages of development, while industry is possibly more important in the latter. In doing so, I attempt to emphasise the importance of land reform in th e earlier phase of development and how South Korea and Singapore achieved it. Public-housing policy is rather more relevant to Singapores case than of South Korea. Today, over 85% of Singapore population resides in housing provided by the government since its public housing policy began in 1930s. The initial quality of housing was poor, but the continuous revolutionary programme since 1960s dramatically improved living conditions. The success of public housing policy, thus the positive spill-over effect of the programme on income inequality and economic growth will be discussed more in detail later on. High level of education, thus high quality of human capital in East Asia has always been on top of the list whenever the driving force of East Asian Miracle was discussed. Thus, I will further investigate why the education is considered to be so much more important in East Asia compared to other developing countries and the effect education on income inequality and economic growth. Ho wever, most of all, the authoritarian political background of Korea and Singapore government must be stressed before the three policies are discussed. This is because without the complete control that President Park, Jung-Hee had in Korea and Peoples Action Party had in Singapore, these policies would not have had its full effect. Government intervention can determine four general areas of distribution of income. They are as follows; Functional distribution à ¢Ã¢â€š ¬Ã¢â‚¬Å" the returns to labour, land, and capital as determined by factor prices, utilisation levels, and the consequent shares of national income that accrue to the owners of each factor. Size distribution- the functional income distribution of an economy translated into a size distribution by knowledge of how ownership and control over productive assets and labour skills are concentrated and distributed throughout the population. The distribution of these asset holdings and skill endowments ultimately determines the distribution of personal income. Moderating (reducing) the size distribution at the upper levels through progressive taxation of personal income and wealth. Such taxation increases government revenues and converts a market-and asset- determined level of personal income into a fiscally corrected disposal personal income. An individual or familys disposable income is the actual amount available for expenditure on goods and services and for saving. Moderating (increasing) the size distribution at the lower levels through public expenditures of tax revenues to raise the incomes of the poor either directly (e.g. by outright money transfer) or indirectly, through public employment creation or the provision of free or subsidised primary education and health care for both men and women. Such public policies raise the real income levels of the poor above their market-determined personal income levels. 189 A contribution which agriculture makes to economic development is known as factor contribution which is related to functional distribution. This can be divided into a further two contributions labour contribution and capital contribution. Labour contribution is defined as the phenomenon when agricultural productivity improves and surplus labour form the agricultural sector is released in to the industrial sector. Yao (2006) noted that in pre-reform China this was not so as labour could not be immediately transferred from one sector to another. In Chinas case this resulted in depressed agricultural labour productivity and large underutilised human capital. In terms of capital contribution Thirlwall (2006) explains that capital contribution can be via voluntary investment in machinery or via involuntary contributions in the form of taxes. One way in which agriculture may constrain economic development is through the product contribution of forward linkage effect, wherein the agriculture sector is responsible for providing raw material, capital and labour for the rest of the economy (Todaro, 2006, 819). Economic development is characterised by a substantial increase in demand for agricultural products, and if the expansion in food supplies (Johnston, 1961, 567) cannot meet demand, then economic growth will be stunted: there will be a significant rise in food prices, leading to pressure on wage rates, which could adversely affect industrial profits, investment and hence economic growth; it could also cause political discontent (Johnston, 1961, 573). This pressure on wage rates can have extremely adverse effects in undeveloped countries where food has a dominant position as a wage good. Structuralists would argue this was at least in part due to a growing population putting pressure on food supplies, coupled with supply inelasticities (Thirwall, 2006, 452). A reliance on exports may also develop. Growth of demand for food is particularly significant as high rates of population growth (1.5%-3%) characterise most of the worlds developing countries, as the decline in death rates, due to increased medical knowledge and application, is frequently much sharper than the fall in birth rates (Johnston, 1980, 572). However, it is worth considering Engelss law at this point, which states that the income elasticity for primary commodities is in elastic; the implication being that as individuals, and a countrys income rise, they will spend proportionally less on these commodities (Thirwall, 2006, 550) and agriculture will become a less important component of economic development. Furthermore, the share of agriculture is GDP falls as per capita income increases; labour share also declines. Nevertheless, income elasticity for food tends to be considerably less elastic for developing countries in comparison with developed ones- 0.6 versus 0.2 or 0.2 Western Europe, the U.S and Canada (Johnston, 1961, 572), suggesting that at least in the short-run, or in the early stages of development, a lack of ability to provide product contribution could mean that agriculture is a main constraint to economic growth. Engels law also has implications for the foreign exchange contribution argument: which states that a country which primarily exports primary commodities will automatically suffer a balance of payments deterioration if there is a growth in world income, vis-ÃÆ'  -vis the balance of payments of a developed country largely exporting industrial goods (Thirwall, 2006, 550), as purported by the Singer-Prebisch thesis, whose import substitution industrialisation hypothesis advocates that developing countries replace imported industrial goods with their own domestically-produced versions. Furthermore, countries will have a heavy reliance on agricultural exports, particularly those which have a heavy reliance on one particular export, such as coffee, tea or fruits, are at the mercy of environmental factors within their own countries, as well as trade barriers and changes in taste, internationally. However, a long-run goal of diversifying from a reliance on one or two export crops can lesse n this vulnerability (Johnston, 1961, 575). In addition, primary commodities typically are the greatest source of foreign exchange and foreign exchange is needed to fund development projects (Todaro, 2006, 69). It is also worth noting that some countries have a marked comparative advantage in agriculture and that in these, a reliance on agricultural exports does not necessarily constraining at all. In some ways, agriculture is in fact an enabler of economic development as it can provide inter-sectoral transfers to faster growing industrial sectors, vis-ÃÆ'  -vis labour or capital transfers. As non-industrial sectors grow, they will need an increased quantity of labour, and whilst the assumption of the Lewis two-sector model that labour supply is perfectly elastic can never be entirely true (due to, lack of transferable skills, or cultural factors, such as an unwillingness on the part of women to move away from their families), it is likely that during the earlier stages of development at least, labour will be drawn from the agricultural sector, as there will be fewer other sources (Johnston, 1961, 576). This loss of labour might in turn provide incentives for agricultural sectors to become more productive, though investment from some source will obviously be necessarily to enable this. However, empirical evidence would appear to suggest that capital, rather than labour is th e main limiting factor to industrial growth, at least in the case of Japan, where taxes levied on the agricultural sector constituted 80% of the tax burden and were used to subsidise the creation of a merchant and shipbuilding industry, as well as investments in railways and education. (Johnston, 1961, 578) This evidentially, presents an example of agriculture enabling, not constraining economic development. However, using agriculture in this way to provide capital for industrialisation inhibits the farming sector from aiding economic development in another way; namely through market contribution, otherwise known as the backward linkage effect, where the agricultural sector generates a demand for industrial products, such as fertilisers, insecticides, machinery, transportation and so on, positively impacting on the economy as a whole. In fact, in the early stages of development, the agricultural sector is likely to provide the largest market for industrial goods. Hence, if a countrys agricultural sector is very largely subsistence, as it is in many developing countries, with farmers able to afford very few of such capital inputs, then agriculture may indeed be the main constraint to economic development. (Thirwall, 2006) Thirwall in fact goes as far to say that, a precondition for rapid industrial growth is a rapidly expanding agricultural sector (2006) Some economists, such as Hirschman, have argued that there are in fact higher linkage effects in the industrial, rather than the agricultural sector and in particular, that in many less developed countries, linkages are to be found within manufacturing industries, but not between industry and agriculture. According to Hirschman idea of Unbalanced Growth, the key to economic development is investment in a leading sector, an industrial sector with high linkages, rather than in agriculture. A problem with this however, is the previously-mentioned inflation, due to lack of coordination between supply and demand. Propagating a single industry might indeed lead to the similar problems with lack of trade diversification that occur when primary commodities are the sole export. As a consequence of land reform, Korea has enjoyed a reputation among countries as one with a relatively equitable income distribution (World Bank, 1983). In1945, when Korea was liberated from Japan and soon afterwards partitioned into South and North, about 80 per cent of the labour force in South Korea was engaged in agricultural and less than 3 per cent in the mining, manufacturing and construction sector. Under these circumstances, two land reforms in 1947 and 1949 meant the collapse of a traditional social order based on land, especially a rice-cultivating society, and the start of a new social order. Furthermore, the Korean War (1950-1953) had a profound impact on South Korean society, destroying existing capital stocks and levelling out the distribution of non-agricultural assets, and leaving the majority of Koreans in destitution. (Pg9 Korea housing) In a rather elaborate simulation-planning exercise, Irma Adelman and Sherman Robinson have investigated the interactive effects of various rural development programmes on income distribution and poverty South Korea. Land reform is one component. (Adelman and Robinson, 1978) Their objective was to determine what types of programmes would yield the largest impact over the medium term. They constructed a basic model of the Korean economy, taking great pains to calibrate it so that its predictions came close to actual outcomes over a predetermined period. In essence, the basic model was made to mimic the development of the Korean economy over a nine-year period, 1964 to 1972. The result is significant. First, among the individual programmes, land reform has the most favourable impact on income distribution. Second, land reform and the public works and small-scale industry programmes are much more effective in reducing poverty than are the other programmes. Third, promoting rural development, that is, implementing all the simulated programmes, leads to greater reductions in the incidence of poverty and income di sparities than either of the two programmes taken individually or jointly. And fourth, without land reform, rural development programmes would be less successful at addressing both poverty and income inequality. (The key to the Asian Miracle, 55) Therefore, the inequality in landholdings is resulting in inequality in all spheres of economic activity, social and political life. The inequality in landownership is leading to inequality of other productive assets also. The inequality is further resulting in un-equal access to the much needed agricultural inputs like credit etc. (Krishna Rao, Growth and Inequality in Agriculture, 1991, 55) Nevertheless, Alice Amsden argues that the reputation of Korea as a country with low income inequality might be due to false information for three reasons: (1) The value of real estate and other assets, which lends to appreciate with inflation, rose more rapidly in the 1970s than wages. Because this value is excluded from income and these assets tend to be owned by higher income earners, the treatment of such assets is likely to result in the understatement of inequality. (2) The equivalent of the United States Internal Revenue Service in Korea sometimes includes and sometimes excludes from the calculation of personal income, capital gains, rent, and interest payments. Such income is also taxed differently from wage income. (3) It was possible until 1988 to open bank accounts in Korea under an assumed name. Nevertheless, land reform did respond to the ancient cry for egalitarianism. When Korea was an overwhelmingly agrarian country, land reform undoubtedly contributed to greater equi ty in size distribution of income. In the late 1930s, 3% of all farm households had owned over two thirds of all land, whereas ten years later. Fewer than 7% of all households were landless (Ben et al, 1980). (Asias Next Giant, Amsden, 38) In addition, Korea has unusually high levels of aggregate economic concentration and of wage inequality by international standards. The process of measuring equality in Korea is vexed by institutional factors. It is undeniable that the Korean state played a central role in the countrys economic development through its cunning use of state-created rents as an instrument for industrial development. Of course, such a result was only possible because the Korean state was a strong state which could discipline firms whenever necessary. It has often been suggested that the Korean state could become strong because the countrys historical development left a social structure with no powerful social classes to contest state power. (Ha Joon Jang, the East Asian development experience, 95) Another example of a significant state role in maintaining low income inequality is an agricultural pricing control. The typical price support programme consists in offering guaranteed procurement prices at which the government stands ready to buy food grain. The idea, of course, is to increase the marketed surplus of grain. At the same time, governments often are unwilling to pass on these prices to urban consumers, partly because these consumers are typically incensed by higher prices and partly because of the effect on the industrial wage. Thus price support programmes are usually accompanied by a subsidy to urban consumers: the procured food is sold at or below market prices by the government. Of course, someone has to pay for this subsidy, and it usually comes out of the government budget. An alternative option is to maintain an overvalued exchange rate. The overvaluation is kept in place by tariff or quota-based restrictions on imports. The implication of overvaluation is that the prices of exports are kept artificially low in terms of the domestic currency. If the country is a food exporter, this policy has the effect of discouraging food exports and shifting food sales into the domestic market. The policy has sufficient opacity about it-farmers may not be aware that the exchange rate is overvalued and reduces their export earnings- and it has the desired impact of making food available to urban consumers without a price rise. 369 Singapore governments public housing policy played a major role in achieving rapid economic growth because public housing policy both directly and indirectly provided opportunities for foreign investments. Singapore government unlike Korean government focused on gathering funds from foreign investors because their belief was that the multinational companies are able to present an opportunity to open up world markets to Singapore; thus increasing Singapores reputation in the international arena as well as providing the sufficient skilled and relatively well-paid jobs for the population; and hence, to upgrade the economy quickly through value-added activities (Reference). The multinational companies were not only attracted by the business environment and incentives in Singapore but also an opportunity to make greater profit presented by the Peoples Action Party (PAP) policies. Two arguments are put forward by Castells, Goh and Kwok that pub lic housing policy managed to keep the costs of operation for foreign investors. First, the public housing lowered the costs of living. The workers were able to rent house at relatively low prices, thus the wage rates in Singapore were not as high as other industrialising countries. With low wage rates, companies were not restricted to lowering quality of labour when employing workers to expand or set up businesses. The empirical example given by Castells et al illustrates this. Although real income increased during the early stage of industrialisation, public housing rentals set in 1960 (at as low as 15 Singapore dollar per month for one-room emergency flat) were not adjusted until 1979, and selling prices of public flats set in 1964 were not adjusted until 1974. In addition, the provision and development of package of relatively high standards of other human and social services, such as educational, health, recreational and other community facilities, in conjunction with public ho using further subsidised the workers costs of living. (Reference) Second, public housing helped develop a complete network of urban infrastructure. State investments and subsidies into creating and improving industrial sites and services and other infrastructures such as railway system and roads around industrial sites reduced overhead and operating costs of the investing companies. Ssc The state investment also assisted the expansion of other industrial and commercial activities. This is another prime example of usage of forward/backward linkage effect. Singapore government not only managed to facilitate environments for investors but also provided bigger markets for domestic businesses that were at the early stage of expansion. Castells et al supports the second argument with an example of the Jurong Town Cooperation and the Housing Development Board (HDB). The Jurong Town Cooperation was established in 1968 as a spin-off from the Economic Development Board specifically to develop industrial sites and services, factories and living quarters for workers. However, the scope of the Cooperation was limited to assisting particularly the heavier industries and all industries within the industrial town of Jurong. Meanwhile, as the major landlord and developer in the republic, the Housing Development Board (HDB) was, in effect, largely responsible for the orderly coordination and development of almost the entire network of urban infrastructure and services, including the provision of sites and factories for light and non-polluting industries in the new towns. (Reference) Therefore, all these public-housing-led developments and services created a sophisticated level of social and urban services that formed the very basis of industrialisation and human capital productivity. These infrastructural investments subsidised a relatively high standard of living for the labour force. Moreover, the infrastructure supported the rapid growth of industrial and commercial activiti es that further enhanced Singapores image as a prospective investment locale, as well as an active business and financial centre, in the region. Public housing has also contributed to Singapores economic development in the area of capital formation. Funding for all the public construction by the HDB and other public development agencies came from the tremendous savings accumulated through the Central Provident Fund (CPF). 305 Besides economic regulation and government intervention on the supply side of economic development, Singapore also has a significant sui generis welfare state. There are no welfare payments, and no unemployment insurance, although there is low unemployment, and the high rate of labour force participation and persistence of strong family ties enable the family structure to provide for most of the victims of economic recessions. The real extent of the welfare state in Singapore includes housing, health, and education. Primary education is almost universal and costs a low nominal fee. Secondary education is free and expanding rapidly. However, its provision is restricted to those children able to pass an examination at the end of primary school, a procedure that epitomises Singapores meritocratic system. University education remains the domain of meritocratic elite, clearly modelled after Oxbridge pattern. Health care is of moderate to good quality and provided almost free for class C p eople (low-income). Classes B and A have to pay higher fees, although since 1985 they have been able to use their CPF contributions to pay for hospital costs. However, people can decide that they are class C and pay a normal fee, without account being taken of their income, provided that they accept the standard conditions of public health care, certainly lower than the technological level of Singapore. Yet the system clearly exceeds any other in the ASEAN region and in most of Asia in quality and affordability. In terms of housing, 85% of the population live in public housing at affordable prices. Although these high-density high à ¢Ã¢â€š ¬Ã¢â‚¬Å"rise living quarters, they are well equipped with facilities, organised o the basis of self-sustaining new towns. Housing units are provided at a cost estimated to be as much as 40% lower than equivalent accommodation in the private sector. This is mainly because of the low cost of land purchased by the Housing Development Board, and the economies of scale achieved by a comprehensive programme that clears land, designs buildings, produces its own construction materials, contracts and supervises the builders, and manages and maintains the housing estates. The Housing and Development Board is actually the manager of Singapores everyday life. Government provision of collective consumption goods and services also includes open-air activities, cultural and recreational facilities, and institutional support for social life through the community centres that exist in most neighbourhoods and particularly in the new towns. By decisively intervening in the process of social consumption, the government provides the material basis for raising the standard of living in spite of low direct wages for the majority of the population (about 70% of Singaporean workers till earn less than $400 per month). In so doing, the state also shapes the pattern of social life and exercises its control and guidance of people, a matter with consid erable policy implications. 188 The most important factor that facilitated the creation of the massive and comprehensive public housing programme in Singapore was the effective implementation and enforcement of the compulsory land-acquisition policies, based on eminent domain. This stringent land policy of compulsory land acquisition has limited land speculation during a period of tremendous economic growth, kept public development of sizable and more efficient satellite towns and housing estates. It has also contributed to the creation of a captive demand market. Between 1961 and 1985, the HDB managed to clear almost $1200milion Singaporean dollar. This provides an idea of the extent of the captive nature of the demand market. The land-acquisition policy has served to redistribute wealth and resources in Singapore. Acquisition made at the expense of private landowners has enabled the government to assemble land for the development of the massive public housing programme, providing the opportunity for homeownership to almost the entire citizenry. Besides, unless government assists in acquisition, clearance, resubdivision of land and planning, the private sector on its own will have great difficulty in obtaining choice sites for proper development, thereby giving indirect rise to urban sprawl (Head, Urban and Renewal Department, HDB, in Strits Times 18 April 1967) The Land Acquisition Ordinance was first passed in 1920 to empower the British Governor of Singapore to acquire private land for public purposes (Wong and Yeh, 1985, page 40). It was amended in 1946 and again in 1955 to give the government greater power to negotiate more comprehensive land acquisitions. These amendments helped to stabilise land pri ces and made possible the improvement of roads and the development of public housing and other public improvement projects. 267-268 On the contrary, housing in Korea was not an issue in political and social debate until at least early 1940s. The quality of housing was limited by the availability of materials and the skills of self-builders, but homelessness and housing tenure were unlikely to be a problem. After independence from Japan and partition in 1945 and the Korean War (1950-1953), the quality and quantity of housing was incredibly low. Although housing is an extremely important aspect of human life, it ranks below nourishment. Food, clothing, and therefore economic growth were more urgent and necessary requirements. Although housing was scarce and of a poor quality as a whole, the assumption of the government was that increased household income would be transferred into effective demands for new, decent housing, which builders would supply, increasing the number of households accommodated in decent houses. Given the constraints of defence expenditure, the housing sector had to be insulated from other inve stment for economic growth. This lack of money available for expenditure on housing by the government has constrained Korea to more negative means of coping with housing problems, such as regulations and controls, rather than positive means, such as direct supply or subsidies. The lack of resources also conditioned the public sector into closer collaboration with the market. The government adopted the private ownership solution mainly because there was no money available. As a means of keeping living costs and wages under control and raising labour productivity, the Korean government adopted food subsidies and mass investment in education, rather than subsidising housing like in Singapore. In 1969, for instance, the government launched the dual grain price programme, buying at higher prices from farmers and selling at lower prices to urban workers. At that time, those policies were more efficient given local circumstances. Until the 1970s, household expenditure on foods accounted fo r over 50 per cent of household income, while that on housing accounted for less than 15 per cent. (Economic Growth, Low Income and Housing in South Korea, Kim Woo-Jin, 1997, 106) Furthermore, the Korean government began to encourage urban renewals as a counter-measure against the economic downturn. Subsequently, general price inflation led by a real estate boom recorded the highest level in a decade. Land, office buildings and real estate in general were demanded not only for use but also for proving wealth. A large proportion of domestic savings was being switched from investment in industry to speculative investment in real estate. Moreover, government regulations over housing price and housing standards created conditions in which management of house builders focused increasingly on the speculative skills of buying land, selling at the right time, arranging favourable deals with subcontractors, and lobbying to change land use under the name of land banking. High inflation under the faltering economy led the government to give the highest priority in national policy to price stabilisation from 1879. In order to stabilise price increases, the government launched a tight monetary and fiscal policy. As a result of the policy, public-sector housing suppliers faced a serious scarcity of funds. With respect to the consumption side, demands for owner-occupation were declining because of deteriorating economic conditions, especially in moderate- and middle-income sectors. (Economic Growth, Low Income and Housing in South Korea, Kim Woo-Jin, 1997, 114) Compared with PAPs policy in Singapore, South Korean government took quite different methodology and approach to tackle the distribution and economic development issues. South Korean government chose to mainly control the food price in order to dampen the pressure of living costs and left the housing industry to the supply and demand of the market, whereas Singaporean government chose to subsidise in housing market in order to increase disposable income of those who are at low end of wage spectrum. Education As I briefly mentioned in introduction, the cultural factor, especially the dominance of Confucianism, may be the only explanation behind the high level of education in East Asia. Confucius teaching background is evident in his emphasis on the power of education to bring about self-transformation. Confucius believed education helped people open their minds and realize their potential to become noble people in tune with the will of Heaven and in tune with other people. Education is so important to Confucianism that it is one of the primary methods used to reach a higher state of being. Confucius believed studying the liberal arts could create a better-rounded person, with each field of study helping to strengthen a specific aspect of personality. Education included study of six areas: poetry, to refine thought and expression; history, for understanding tradition and developing moral judgment; ritual, for understanding propriety; music, for inner transformation; politics, for social tr ansformation; and cosmology, for achieving harmony with the sacred forces. (Confucianism 101, L.E. Terry, 2005) Based on these facts, the cultural factor cannot be neglected as a minor suggestion when explaining reasons for the high level of education and thus accumulation of human capital. There is a strong possibility that East Asian governments would have known that the accumulation of human capital is crucial for economic growth, but the investment figures of Korea and Singapore in education are unprecedented in any developing countries as well as any developed countries while they were in developing process. Studies on the economics of education in both developed and developing nations formerly focused on the link among education, labour productivity, and output growth. This is not surprising in light of an objective of development during the 1950s and 1960s, the maximisation of aggregate rates of output growth. As a result impact of absolute poverty was largely neglected. Recent studies, however, have demonstrated that contrary to what might have been assumed, the educational systems of many developing nations sometimes act to increase rather than to decrease income inequalities. The basic reason for this perverse effect of formal education on income distribution is the positive correlation between level of education and level of lifetime earnings. This correlation holds especially for workers who are able to complete secondary and university education where income differentials over workers who have completed only part or all of their primary education can be on the order of 300% to 800%. And as levels of earned income are clearly dependent on years of completed schooling, it follows that large income inequalities will be reinforced if students from the middle and upper income brackets are represented disproportionately in secondary and university enrolments. In short, it for financial or other reasons the poor are effectively denied access to secondary and higher educational opportunities, the educational system can actually perpetuate and even increase inequality in developing countries. Educational economist John Simmons gives the following sketch of how the poor are beginning to regard education: Schooling, the poor quickly learn, in most countries, is an escape from poverty for only a few. The poor are the first to drop out because they need to work, the first to be pushed out because they fall asleep in class as one result of malnourishment, and the first to fail their French and English tests because upper income children have had better opportunities at home. The hope brought to village parents by the construction of the primary school fades. Enough schooling to secure steady, even menial job for their son, let alone for their daughter, seems just beyond their grasp. Beforeà ¢Ã¢â€š ¬Ã‚ ¦ any schooling would have done to achieve their aspiration. Now a primary school certificate is needed, and some are saying that even students with some secondary schooling cannot get a steady job; and they could never afford to send their son away to town for secondary schooling. There are two fundamental economic reasons why one might suspect that many LECD educational systems inherently inegalitarian, in the sense that poor affluent students have less chance of completing any given educational cycle than more affluent students. First, the private costs of primary education (especially in view of the opportunity cost of a childs labour to poor families) are higher for poor students than for more affluent students. Second, the expected benefits of primary education are lower for poor students. Together, the higher costs and lower expected benefits of education mean that a poor familys rate of return from investment in a childs education is lower than it is for other families. The poor are therefore more likely to drop out during the early years of schooling. Korea and Singapore appear to beat this cycle and have industrialised rapidly because they have invested relatively heavily in education. Educational investments resulted in universal primary education and in widely available secondary education. In addition, the quality of schooling has improved more rapidly in the East Asian economies than in other middle-income economies; as fertility rates fell in the 1970s, education spending per child rose sharply even as education expenditure as a percentage of GNP remained constant or, in some cases, declined. In Korea and Singapore, the school-age percentage of the population dropped by nearly half from 1965 to 1989. (East Asian Miracle, World Bank Report, 20) As argued by Young (1995) and Nelson and Pack (1999), coupled with factor accumulations in physical capital and labour force, an increase in human capital through improved educational levels accounts for the fast economic growth experienced by Korea. The proportion of the Korean workfo rce with a secondary education has tripled between the mid- 1960s and mid-1990s. This high level of education has enabled the labour force to absorb rapid changes in technology. Moreover, education has played a pivotal role in improving productivity in agriculture and industry within the Korean economy. (Asian Development Report) A well-educated work force, both white- and blue-collar, is a general property of late industrialisation, distinguishing it from earlier industrial change. (Alice Amsden, Asias Next Giant, 216) Clearly, late-industrialising countries tend to promote greater accessibility to education than was customary in earlier periods of industrial expansion. What is noteworthy here is the relative pre-eminence of Korea, by contemporary standards, in this area of social progress. Even among late-industrialising countries, Korea tends to excel in most indices of education, standardised for population size: secondary students as a percent of eligible secondary-age students , scientists and engineers per capita, and so on. Korea scores higher in most educational indicators than even Singapore, which adopted a high-skill growth strategy before Korea. Nevertheless, there is also drawback of having many high educated workforces. Over 95% of eighteen-year-old children graduate from high schools, and more than 70% of them advance to higher education institutions. The result of this is that many employers consider an undergraduate degree as a minimum requirement and thus over half of undergraduates carry on their studying to further education level in order to make themselves more employable. This effectively creates further education costs that poor students cannot afford. Moreover, Korean society runs in culture of In-maek, which is alumni relations. The statics show that the students who graduated from Seoul University, Yonsei University and Korea University Chapter 4: After Asian financial crisis Explaining the Recent rise in income inequality (Weil,380) The technological advance is the main driving force in the recent rise in income inequality. As with other increases in technological progress, information technology increased the rate of return to certain characteristics of workers à ¢Ã¢â€š ¬Ã¢â‚¬Å" most importantly education. Computers complemented the skills that educated workers already possessed, making such workers more productive, while doing little to raise the productivity of uneducated workers. In 1993, for example, 70% of workers with a college education used a computer in their jobs, while only 10% of workers with less than high school education did so. The new technology also created a fluid situation in which there was a high return to flexibility or entrepreneurial spirit.

Marketing Communication Strategy Free Essays

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We will write a custom essay sample on Marketing Communication Strategy or any similar topic only for you Order Now The The selling point of this unique bags lies within it’s Monocoque Hardshell strong and protective, yet light, comfortable and ergonomically sound. Together with Internal Cargo System and The External Cargo System came together as the first BOBLBEEâ„ ¢ Monocoque Hardshell Backpack in 1998. The team is assigned to bring about the awareness of this innovative product and to create a different image from the other bag producers in the market. And to help to achieve the sales target set by the client Target Group The audience will be basically average males in their age of 18 to 25 years old. The trains (MRT) is their time saving machine, not forgetting the buses that allows a shorter cuts across the city. Being constantly on the go, they have full of passion and are curious about the innovative and technology world. They are gamed enough to experience the different savy new aged equipment that are on the market. It is essential to have multi and convenience products on their body that will help to project a impressive image to any others. They also enjoy reading hip and fashion magazines to keep themselves updated with the ever changing trends of fashion. The shopping malls and internet are their weapons for any knowledge that they seek to find. The target group are usually youngsters in search of a outstanding identity, They are very knowledgeable and sensitivity towards the â€Å"what’s new† on the market. As the spending power had become stronger over the years, money is no longer a factor to getting anything that they wish to obtain. The boblbee backpack is a complete change over from the usual haversack we can find on the market. As the product has a sleek hard shell that stands out from the crowd, it does attract attention and project a new age look. On the whole the light backpack provides a multi functional and a kinder load to the user’s back. Corporate Objective â€Å" To achieve a sales revenue of S$800K in the first year and a total of S$74 million in the next 3 years(at 5% increment)† Advertising Objectives â€Å"Within a year, to inform and educate the target audience of males between 18 to 25 who are innovators, trendy and outdoor type. And to instill awareness† As it is new to the market that we are presenting to, there is a strong need to established a ground for this innovative product for the first year. So the revenue for the first year will be slightly slower as the ideas are to inform and educate the target audience. The consumers are constantly exposed to the ever quick moving fashion trends, by setting up a class of it’s own, would allows a good, stronger mind perceptions in consumers. Thus to attract and maintain the sales income will requires lots of reminders in the later part of the product cycle. Message Strategy Product positioning statement The â€Å"place† where a product occupies in a given market as perceived by the target audience is known as the product’s position. Positioning involves determining the image we want the product to have in the consumers’ mind as well as developing and implementing promotional strategies to achieve the desire image. There are several strategies to position a product in the market such as using Product Application or using Price/Quality†¦etc. For this product we decided to use the Product Attributes, which is able the set the brand apart from competitors based on specific characteristics or benefits offered. In fact it can help to position on more than one product benefit. It is important for the marketers to position their new product correctly so as to create awareness as well as to encourage the consumers on brand switching from competitors. The characteristics of the product that we want to emphasis to our consumers are that this bag is a durable, multi-functional product targeted for the new generation. We need to help the target audience to identify these benefits and their product acceptance to this innovative product in the new age. These extraordinary features also help the consumers to generate a cool image if their purchase decision on this product is made. It helps to keep and also protect their sensitive equipments such as laptop or digital cameras from any damages during movement, as long as they are safely kept in the hardshell. â€Å"To position Boblbee as a superior brand apart from other bags like Outdoor, Campus, Deuter etc. With exceptional product attributes, to form a durable multi-functional bag that caters to the needs of new age, techno savvy, sporty individuals with a crave for design of innovations†. Approach Our team has adopted Informative and argument approaches for our message presentation. As this is a new product to be introduced into the local market, these approaches can help to aggressively accelerate in brand presence. We regard this Boblbee backpack as a high involvement product since the target audiences are actively seeking information about this new product. Using the argument approach is also appropriate as the benefits from product features are not obvious to the target audience. The main benefits such as the impact protection, bellow flex and lumbar support system. Impact protection- The boblbee monocoque hardshell provides optimal protection for sensitive products such as lap tops and cameras. Bellow flex- the boblbee quick lock, in combination with the unique bellow flux, allows flexible volume adjustment and easy access. Lumbar support system- lumbar support created by the innovative S-design separates the upper load area from the lower lumbar support area and provides excellent weight distribution and reduced stress on the back. .. It has achieved several Awards wining in †¦Ã¢â‚¬ ¦. Remote control models and other hobby items (ctrl+click to follow link) Cheap cosmetics, skincare haircare, designer fasion. All famous brands (ctrl+click to follow link) A lot of exiting erotic products (ctrl+click to follow link) Check these products CtrL + click on the banners to enter [pic] [pic] [pic] The right bag can make the difference ———â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€œ [pic] The ultimate bag for all †¦ The right bag can make the difference for the modern sportsman†¦ How to cite Marketing Communication Strategy, Essays

The FB Restaurant

Introduction The FB Restaurant is a unique restaurant in Leysin that is expected to provide students with a wide selection of quality beverages at affordable prices. The restaurant will be open weekdays, from Monday to Friday, and specifically during lunch hour and dinner time only.Advertising We will write a custom essay sample on The FB Restaurant specifically for you for only $16.05 $11/page Learn More It expects to attract as many students as possible and to ensure that they leave satisfied since it is customer-oriented (Dev and Don, 2005). This would also ensure that the customers attracted would be retained in order to ensure the sustainability of the business (Kotler and Keller, 2012). As the restaurant grows, all suggestions will be welcomed and hence the availability of a suggestion box at the entrance. Type of customers The FB Restaurant is set to attract the SHMS student. This is due to the fact that the location of the restaurant favours this option. The restaurant is strategically placed to be able to serve the students from the school. A proper location of a restaurant is close to the target market. In the case of FB, the location was selected in order to increase convenience. The student to be targeted should be within the ages 18 and 25. The lower limit has been set to 18 due to the fact that wines and other such beverages will be sold in the restaurant. Persons under the age of 18 are not allowed to take alcoholic drinks and the restaurant is not ready to change that. The students that shall be targeted should be ones that enjoy drinking with friends and socialising.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Direct competition Within the Leysin area, there are no direct competitions. Therefore, this is an added advantage to the restaurant. However, there are some competitors around the area. These include the Davinad a and Lynx restaurants. Some of their strong points include the following: The restaurants have professional chefs in their kitchens. As for the FB Restaurant, students make up the kitchen staff. Therefore, the quality of service is expected to be different. The restaurants have an added advantage since they have variety in their menu. They serve both drinks and food. As for the FB Restaurant, drinks will make up the bulk of the products. The restaurants also have the ability to change the menu. This is mainly due to the funds available from the profits they make from selling the food. The competitors are also greatly advantages because they are better decorated. This would help them attract more customers who are keen on looks. The competitors also offer takeaways. This is advantageous in that they can easily adjust time when food is required. The weak points include the following: The FB has an advantage over the other competitors since the competitors are expensive in their se rvices. The competitors also do not have seat control. Therefore, they cannot know how many people visit the restaurant in order to prepare enough food for all. Marketing the restaurant Marketing is one of the most important parts during the development of a business (Guiltinan, 1996). This entails the communication of a particular good or service to the target population. FB plans to market its products and services through several ways. One of the ways we would market is through the emails. This strategy is expected to reach most people since every student is expected to be in a position to access the internet. Furthermore, smart phones have made the accessibility of emails and other sites easier. Another way the restaurant will be marketed is through the use of word of mouth (Hochbaum et al., 2011). This is also expected to reach many individuals. Those who walk around those areas will be able to hear about it and visit the restaurant to check out what is available. Another way the restaurant will be marketed is through the organization of wine parties. Since the restaurant is specializing in beverages such as wines, it will only be logical to organize wine parties to advertise the products (drinks) that are available. The quality and affordability of the products will attract the students. In order to raise awareness even more, posters shall be printed and posted around the area so that more people can read and be informed. With time, the restaurant can develop a website so that people can access and get information (Joshi, 2005).Advertising We will write a custom essay sample on The FB Restaurant specifically for you for only $16.05 $11/page Learn More The restaurant’s organization The service organization Every night, ten tables are set. Each table has three seats. Therefore, the restaurant can host thirty individuals at once during dinner. The staff will be made up of thirteen members. These will include a manager, two supervisors, a bar attendant, 2 chefs and 7 cooks. The service staff duties Six people will provide service per time. These will include the individuals who will take the orders from the guests. They will also serve food and drinks as requested by the customers. Two supervisors will be available to help in the coordination of the activities in order to ensure that everything runs smoothly. The manager will also be available to monitor the services, especially in the kitchen. The bar attendant will be selling the wine. These individuals will also be involved in customer relations whereby they will interact with the clients and ask for feedback. Proper communication will also be ensured in the restaurant. To ensure efficiency of delivery of the products, one person will be available to coordinate the movement of the food and drinks. The service sequence First of all the client will be welcomed warmly as they enter the restaurant. As they sit down, they will be given the menu so th at they can make their selection. Their orders will then be taken. The drinks or food would then be served to them. Cheese and sweets shall then be provided as the customers finish their meal. When the customers are satisfied, they shall be given their bills. Staffing The FB Restaurant will have one manager who will provide general leadership and control in the restaurant. Two supervisors will be available to coordinate some of the services as the restaurant is running. They will ensure that everything is running smoothly. One bar attendant will be required to the sell the drinks.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Six waiters will be available on duty to serve the foods and drinks. Two chefs and seven cooks will work in the kitchen to ensure that quality food is served. All these members should be competent and experienced. Staff guide and schedule Position Number Duty Manager 1 General leadership and control Supervisor 2 Supervise activities Bar attendant 1 Sell wines Waiters 6 Take orders and serve Chefs 2 Cook Cooks 7 Cook References Dev, S Don, S 2005, ‘In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century’, Marketing Management, vol. 14, no. 1, p 32. Guiltinan, D 1996, Marketing Management: Strategies and Programs, McGraw Hill/Irwin, New York. Hochbaum, D, Moreno-Centeno, E, Yelland, P Catena, R 2011, ‘Rating Customers According to Their Promptness to Adopt New Products’, Operations Research, vol. 59, no. 5, pp. 1171-1183. Joshi, R 2005, International Marketing, Oxford University Press, New York. Ko tler, P Keller, L 2012, Marketing Management, Pearson Education Limited, New York. This essay on The FB Restaurant was written and submitted by user Desiree Herrera to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.