The Struggle Of Oil In America Essay Example for Free

The Struggle Of Oil In America Essay Introduction Since its discovery 150 years ago, petroleum oil has become lifeline of the world, the functional equivalent of blood in the human body. The mechanism driving the entire transportation system from automobiles, airplanes, railways, ships to space rockets is based on utilization of energy of petroleum oil. Petroleum products are also extensively used in a number of infrastructure industries that form the core of industrial processes and basis of existence of modern world. However, the petroleum resources of world are very limited and they cannot endlessly meet human demands. Various estimates have put the total extractable oil stock to exist for another 50-75 years if world continues to consume them at present rate. After that the cost of extraction of remaining petroleum products would become much more than the benefits obtained them and world would require new resources of energy to exist. These concerns have already spawned intense research in alternative technologies to meet the future energy needs in the face of an impending petroleum crisis. United States of America is world’s leading consumer of petroleum products accounting for approximately 25 % of total consumption of petroleum oil world over. In 2003, world’s consumption of petroleum oil stood at around 80 million barrels per day, out of which US’s share was close to 20 million barrel (Hirsch, Bezdek, Wending, 2005). To meet these huge petroleum demands US depends crucially on oil imports that is well above 50 % today and continuing to rise upward. This overwhelming dependence on imported oil poses various strategic and security challenges for US interests in the long run. The sharp oil price increases of 1973 and 1979-81 serve as testimony to the dangers of import dependence. Further as the oil sources would continue to deplete, the prices of oil would steadily and inexorably rise until the level when world is faced with an acute fuel crisis. Based on these observations it’s vital that U.S explores alternative technologies and fuels to sustain its development and growth structure. Oil Imports The continuous rise in U.S oil consumption has forced it to rely increasingly on imported oil to meet its expanding requirements. In the past 50 years, oil consumption fell just on two occasions that were marked with international increase in prices of oil, in 1973 and 1979-81.. Domestic production of oil that peaked in 1971 has fallen since then while oil imports have continued to rise, crossing the domestic supplies in 1994 (EIA, 2005). The net imported oil share in the net oil consumption was 34.8 percent in 1973 which went lowest at 27.3 percent in 1985 but since then it has continued to rise against a dropping domestic production levels (Reaardon, 2002). The upward trend in oil consumption and consequently in oil import have continued to take place despite multiple efforts and policy intervention that government has tried to introduced (Deutch J, Schlesinger J.R, and Victor D.G., 2006, 29). As of today with its 20 million barrel per day consumption U.S is the largest consumer and importer of oil, surpassing the combined consumption of Japan, Germany, China, Russia and South Korea (Reardon, 2004).. The share of oil in total energy produced in USA is just 17.2 percent while in consumption it rises to 40 percent that explains the need for huge oil import. Imports constitute 11 million barrels per day that is more than the aggregate oil import of Japan, Germany, and South Korea (Reardon, 2004). For oil imports U.S relies heavily on Canada, Venezuela and Middle east oil with Canada being the single largest exporter country of oil to U.S. However as a group the OPEC dominates among all the exporters supplying more than 50 percent of total oil imported by U.S (Petroleum Navigator, 2006). The total petroleum imports for U.S stood at over 5 billion barrels in 2005 out of which crude oil constituted 3.69 billion barrels which means that oil accounts for almost three-fourth of the total imports (Petroleum Navigator, 2006). Finished petroleum products constituted the second largest import segment with close to 15 percent contribution. The bulk of the oil consumption takes place in the transportation sector, which accounts for the 69 percent of the total oil consumption in US (Basic Petroleum Statistics, 2007). Overall there are five major sectors accounting for petroleum oil consumption. These sectors, along with their consumption share in year 2005 are (Petroleum-EIA, 2006) Domestic/Household: Consumption in 2005 was 869 thousand barrels of petroleum per day Commercial: 386 thousand barrels of petroleum per day Industrial: 5061 thousand barrels of petroleum per day Electric Power production: 545 thousand barrels of petroleum per day Transportation: 13, 825 thousand barrels of petroleum per day. A breakup of consumption pattern in the transportation sector reveals that consumption stands highest for motor gasoline. Average daily consumption of motor gasoline in U.S, according to Petroleum data (EIA, 2005) is 8933 thousand barrels per day. Distillate fuel oil is the second most consumed petroleum product with daily consumption at 2817 thousand barrels. These figures give a realistic view of inevitable oil import dependency U.S for present and future if it carries on the present rate of consumption. Indeed the chances to curb the massive oil imports are slim considering the fleet of 210 millions vehicle that depend solely upon motor gasoline for their functioning (Hirsch R.L, Bezdek R, Wending R, February 2005, 4). As on 1st January 2006, the total proven oil reserves with U.S was just 21.6 billion barrels, which implies that in future U.S would be forced to rely almost completely on oil imports for its entire transportation requirements. As the closer sources shall run dry, U.S’ dependency would shift to further sources from where oil must be transported over vulnerable supply lines, leading to rise in global oil price. The greater risk is certainly compromising with U.S national interests. The oil supply lines would always be at risk against subversive elements requiring another set of huge investment in ensuring safe transportation of oil to U.S onshore facilities. It will also place U.S interests in the hands of oil cartels such as OPEC that may freely manipulate oil supplies according to their own interests. The shortage of oil would be more manifest in coming times as oil demands are growing world wide, especially in China and India with rapidly expanding economy, transportation system and consequently requirement of petroleum oil. Even at present consumption rate there are grave uncertainties on the secure prospects of future supplies within next 50 years time frame, and the rising consumption rates threatens to bring the approaching crisis nearer. United States is thus faced with a great responsibility to secure its future interests without sacrificing its present requirements and needs. This issue forms the topic of the next section. Part II: Alternative fuel technologies The impending oil crisis has finally stirred policy makers in US. A number of approaches are suggested that include a. imposing taxes on oil consumption b. using tradable gasoline permits and c. exploration of new sources of oil ( Deutch J, Schlesinger J.R, Victor D.G. 2006 ). However, the pressing need of situation demands measures that would sustain the present structure while safeguarding the future against depleting sources and rising petroleum prices. As the world’s oil reserves are finite, even measures such stagnating oil consumption and using oil more efficiently are just helpful in delaying the inevitable without offering any permanent solution to the issue. Oil reserves are going down steadily and within a couple of decades prices will soar up inexorably disrupting the economy, industry and society in turn. The only practical solution to this problem is technological innovations in energy field that can reduce dependence on petroleum oil by providing alternative and sustainable sources of energy. It shall serve two immensely useful purposes that are a. minimizing U.S dependence on foreign oil and b. preventing the environment from damages associated with use of petroleum oils and products. The certainty of oil exhaustion has inspired efforts from both government and corporate sector to research and develop the new fuel technologies as a providential measure for survival, growth and progress in forthcoming days of oil crisis. Past decade has seen great thrust on technological researches in alternative fuels. Various new techniques and models have already been introduced in the market to test their viability and capacity to successfully replace petroleum as chief source of energy. Most of these innovations are specifically aimed at transportation sector owing to its liability as chief consumer of petroleum oil and as principle cause of soaring oil imports. Due to distinct requirements of different sectors in transportation, the technologies vary. Passenger vehicles, public transport vehicles and freight transportation carry specific needs that are difficult to be met by a single alternative fuel technology.   Some of the major and most popular of these technologies, where majority of research and development has taken place, are (Aldrich, 1996) 1.Hybrid Vehicle, 2. Bio-diesels 3. Ethanol 4. Hydrogen and 5.Solar energy Following section discusses the technology used in each of these new vehicle-systems and their benefits over conventional gasoline based internal combustion engine. Hybrid Vehicles: As the name suggests, hybrid vehicles combine dual technologies for their operation. Technically they are hybrid electric vehicle with an electric motor that drives the vehicle (Hoogma, Kemp, Schot and Truffer, 2002, 41 ). In the case of a typical electric vehicle, hydrogen fuel cell or chemical batteries such as advanced sealed lead battery, nickel cadmium and lithium ion are used for auxiliary power (Aldrich, 1996). However in the hybrid electric vehicles, the electric drive technology is combined with a gasoline-based power generator for running the electric motor and charging the batteries. Hybrid vehicles are either full hybrid or mid hybrid. A full hybrid vehicle can move forward from standstill purely on electric power while a mid hybrid requires gasoline power for initial movement, although both technologies concentrate on maximum utilization of electric motor power while reducing the use of gasoline as far as possible (Hybrid Terms, 2007). The electric motor and internal combustion engine (ICE) are connected either in parallel or in series in a hybrid vehicle. In parallel hybrid cars, power to engine is supplied by both the electric motor and internal combustion engine while in the series hybrid car the gasoline engine powers the electric motor and batteries to generate electricity, without directly providing power for the vehicle (Hybrid Electric Vehicles, 2007). There is another category of hybrid vehicles, called as ‘plug-in hybrid’ that can operate as a full electric vehicle. They require some additional batteries and use electricity net to charge the batteries thereby minimizing gasoline use to its lowest possible levels (Hybrid Terms, 2007). All hybrid electric vehicle use computer that constantly monitors speed, power required and charge conditions of batteries (Hybrid Electric Vehicles, 2007). Bio-diesel: Bio-diesel, as the term suggests, is a type of renewable fuel obtained by agricultural products and used as fuel in heavy-duty vehicles. The major sources currently under research for bio-diesel are soybean, rapeseed, corn, cottonseed, peanut, sunflower, and canola (Aldrich, 1996, 85). The process of making bio-diesel involves use of an alcohol such as methanol which is treated with oil of selected agricultural produce to form glycerin followed by separation of fatty esters, recycling of excess alcohol and purification of esters to produce a fuel that bears remarkable closeness to diesel, however with higher octane number (Aldrich, 1996, 85). Currently bio-diesel is used when blended with petroleum diesel, especially in European markets, with commendable results. Ethanol: Ethanol as a very long history as an alternative fuel, and it was tried in even 1880 as a fuel option for Ford cars (Aldrich, 1996, 51). Ethanol is derived from agricultural produces by process of fermentation and distillation to form a high-octane liquid fuel. Normally ethanol is not used alone as a fuel, instead it is blended with gasoline in ratio of 85 percent ethanol and 15 percent gasoline to form a fuel E-85, which is approved as an alternative fuel in US (Ethanol, 2007). The vehicles run on this fuel are called as flexi fuel vehicles. Ethanol has emerged as a successful alternative to fossil fuels in Brazil where more than 4 million vehicles on ethanol based fuel and it is finding increasing application in US as well. The benefits of using ethanol are multifold and they include (Ethanol, 2007) Hydrogen: There are great interests in using hydrogen as fuel in transport industry due to the great flexibility of options and performance it offers. Hydrogen can either be used as fuel in place of gasoline in internal combustion engine or it can be used as energy carrier in fuel cells, the latter being the major research area in automobile sector (Aldrich, 1996, 87). Solar Power: Use of solar power as energy in transportation sector has been subject of intense technological research. While the solar energy has found wide application as domestic energy supply, there are difficulties in their application in transport sector. Photovoltaic cells, that absorb sunrays to provide electricity, are inefficient under the current technology strains and unable to generate even a fraction of required power to drive a normal passenger vehicle. However, solar power has turned as a dependable source of energy in areas other than transport. All the initial costs are high in maintaining a solar energy power plant, its been shown that with increasingly sophisticated technology and wider application the cost of installation as well as generation of electricity can get comparable to normal power plants (Borowitz, 1999,112). Mass Transport System Apart from introducing alternative fuel and technologies to replace and minimize fossil fuel consumption, another area where fuel consumption can be easily reduced is creating a more robust and functional public transport and mass transit system. It is cost effective and time consuming to redesign the existing public transport system, especially in major cities, to cut down fuel consumption by reducing number of vehicles on the road. While airplanes are already a popular and heavily used long distance intercity mass transit system, there are many available areas of intervention in short distance intercity and intra-city transport to provide fast and reliable transit facilities while simultaneously reducing traffic, freeing up space on roads and parking and moderating fossil oil consumption. The transportation system of US, excluding freight transport, is presently divided in two broad categories a. privately owned individual all purpose vehicle transport system and b. public transport system consisting of buses, trains, trams, and metros under the control and maintenance of public administration and public transport companies ((Hoogma, Kemp, Schot and Truffer, 2002, 36-37). Public transport system is usually characterized by low cost, fuel-efficient transit system capable of carrying large number of people on a fixed route (ibid). It has been felt over time that a sustainable and efficient fuel policy needs to incorporate advanced public transport system as one of its key focus area. To improve the services of public transport system, increase its popularity and acceptance among people and highlight its role as an efficient and fuel incentive mode of travel, public authorities and corporations are required to introduce some important policy and technological measures. Three policy measures as highlighted by Hoogma, Kemp, Schot and Truffer (2002, 43)   are 1. Developing an integrated public transportation system where a single ticket can be used to commute irrespective of the number of switchovers made in the process. 2 Development of strong travel information structure in the public transport system, which can help people to navigate to their destinations easily. 3. Providing easy payment facility such as smart cards. These policies would greatly enhance the image and services of public transport system. Additionally the light rail and bus services can be expanded to cover specifically high traffic and downtown areas of major cities. An integration of public transport and private vehicle system can be achieved by providing sufficient parking space at stations and depots of public transport system. It would encourage people to use their private vehicles to access public transport system, resolving one of major issues of limited accessibility involved with mass transit system. Conclusion When fossil fuels were discovered around 150 years back, the existing technologies of steam engines were unable to utilize them. However, soon completely new technologies were developed in the face of these new energy sources and they were used to capitalize on the energy content and efficiency of fossil fuels. Soon petroleum fuels revolutionized the way the world moved and worked. The past 100 years of consumption has comprehensively depleted non-renewable petroleum deposits and estimates give another 50 more years before the remaining available sources would get almost exhausted. This fact is indeed a cause of concern, but only if viewed from existing technological frame. Declining petroleum resources offer the signal that its time to make transition towards different energy sources. Countries that would fail to read this signal or close their eyes to it are certainly heading for a major crisis. But fortunately US has the capacity to read these signals and develop reliable intermediate technologies and systems such as hybrid electric vehicle, ethanol and public transit systems that would considerably reduce fossil fuel consumption without adding to infrastructure cost thereby extending the life period of petroleum reservoirs. Meanwhile research can take place on new age technologies such as fuel cell and solar photovoltaic cells to complete replace fossil fuels as a source of energy. It is possible that if government and industry institute providential policy measures, there would be a host of alternative technologies in transportation sector by the time petroleum oil would get exhausted. But the question is that has US opened its eyes to the approaching crisis of oil shortage and if so, then what are the policy measures that are being taken to avert and stultify the crisis. Depleting oil resources are a reality, and it is certain that within decades oil prices would climb to astronomical height, bringing the entire present system to standstill. The whole structure of US is running efficiently on the energy of petroleum and it would collapse if this energy dries up. The responsibility to start transition towards new system, however, is not only of government but of every person because the future of crisis would be a common future. It would a collective exercise upon to use alternative technologies in their personal life, make maximum possible use of mass transit system and send the message to government and industry that people are ready for the great shift from petroleum oil. Reference Reference Basic Petroleum Statistics. Jan 2007. Energy Information Administration. 31st Jan. 2007 http://www.eia.doe.gov/neic/quickfacts/quickoil.html Benefits of Public Transport System-An Overview. 1st Feb-2007. American Public Transportation Association. 1st Feb 2007. http://www.apta.com/research/info/online/ben_overview.cfm Bob Aldrich.. ABCs of AFVs: a guide to alternative fuel vehicles. California Energy Commission, Sacramento-CA. April 1996. 1st Feb 2007 http://www.p2pays.org/ref/26/25156.pdf Borowitz, Sidney.   Farewell Fossil Fuels: Reviewing Americas Energy Policy.: Plenum Trade: New York: 1999 Deutch J, Schlesinger J.R, Victor D.G. 2006. Consequence of U.S Oil Dependency: Report of an Independent Task Force. 30th Jan. 2007 http://www.cfr.org/content/publications/attachments/EnergyTFR.pdf Ethanol. 2007. Alternative Fuel Data Center. US Department of Energy. 1st Feb, 2007, http://www.eere.energy.gov/afdc/altfuel/ethanol.html Faupel Karen and Al Kukri, 2002. Biodiesel: A Brief Overivew. NCAT Agricultural Specialist. 1st Feb, 2007. http://www.msenergy.ms/biodiesel.pdf Hirsch R.L, Bezdek R, Wending R. February 2005. Peaking of World Oil Production: Impact, Mitigation, Risk Management. 30th Jan. 2007 http://www.pppl.gov/publications/pics/Oil_Peaking_1205.pdf Hoogma Recmo, Rene Kemp, John Schot, Bernhard Truffer.   Experimenting for Sustainable Transport: The Approach of Strategic Niche Management.: Spon Press: New York: 2002. 36 Hybrid Electric Vehicles. Feb 2007. Hybrid Electric Vehicle: Implementing Agreement. International Energy Agency. 1st Feb, 2007. http://www.ieahev.org/hybrid.html#Anchor3 Hybrid Terms. HybridCars.com. 1st Feb 2007 http://www.hybridcars.com/types-systems/hybrid-terms.html Petroleum. July, 2006. Annual Energy Review-2005. 31s Jan, 2007 http://www.eia.doe.gov/emeu/aer/petro.html Petroleum Overview, 1949-2005. Annual Energy Review.31st Jan, 2007 http://www.eia.doe.gov/emeu/aer/petro.html Prospects For A Hydrogen Economy. Oct. 2002. Postnote. Parliamentary Office of Science and Technology. 1st Feb, 2007. http://www.parliament.uk/post/pn186.pdf Reardon Jack. .An Institutionalist Critique of the Bush Administrations Journal of Economic Issues. Volume: 38. Issue: 2. Publication Year: 2004. Page Number: 449+ Sanna Lucy. Driving the Solution: Plug-in Hybrid Vehicles. EPRI Journal. 1st Feb 2007. http://www.calcars.org/epri-driving-solution-1012885_PHEV.pdf U.S. Imports- Petroleum Navigator.Energy Information Administration. 31st Jan 2007 http://tonto.eia.doe.gov/dnav/pet/pet_move_impcus_d_NUS_Z00_mbbl_m.htm

Sociology Induction Essay Example for Free

Sociology Induction Essay The article I have chosen to analyse is With Knife Crime on the Increase its back to Basics by Michael Godfrey. The article discusses the increase in knife crime amongst teenagers in the British isles and claims that it is a lack of respect that has caused this, claiming that parents are at fault for attempting to reason with their children instead of setting clear boundaries and enforcing rules. Violent crime effects all members of society negatively, and increase in knife crime causes members of the general public to become paranoid and afraid for their safety. It makes people less likely to want to travel anywhere alone or at night and also to decrease the amount of valuables they keep on their person in order to avoid being mugged. Also, looking at knife crime from a more macro perspective, it could be said that increase in crime costs our society economically (the government paying to keep them in overcrowded jails) and culturally (creating a negative image to other countries/societies and harmful stereotypes). According to a recent study by the youth justice board, relative poverty among young people has caused many to resort to violent crime in order to get the things they covet (iPods and mobile phones) this combined with poor parents is creating children/teens who grow up to be dysfunctional members of society. Marxists would claim that this is the middle class/upper classes fault, that the working class are so thoroughly oppressed that this is only expected. They would credit this increase in knife crime amongst predominantly working class males as caused by the lack of opportunities provided to those with lower ascribed status. However, the New Right would likely blame this increase of violence on the rise in divorce and the dissolution of the traditional nuclear family. More and more of todays youth (especially working class individuals) are brought up in single-parent families, civil partnership families and increasingly unconventional situations. The new right believe that is this lack of stability that hinders proper primary socialisation and allows todays youth to be inappropriately aware of the effect of their anti-social behaviour on larger society. Many sociologists believe that a more stable home life and better education would help to keep young people off the streets and away from violent crime. Others say that a firmer hand at home keeping them in line would also help. However, it has been proven that enforcing rules more strictly does not effectively discourage knife crime, this was shown in Ireland where penalties and prison sentences have been increased there was no improvement seen in the amount of knife crime committed. However, many people also criticise Marxists for focusing almost entirely on class conflict and not factoring other points into their theories (family breakdown, economic recession) Marxists fail to take into account increase in knife crime amongst the upper classes and make those of lower class the victims. The New Right are also heavily criticised for their intense focus on the family and their tendency to blame the victims for the problem. The New Rights view of the family is ideological and fails to see the merits of raising children in a more dysfunctional family than the traditional cereal packet family ideal of gone times, they fail to take any other points into account.

Dubai Property Market Economic Theory

Dubai Property Market Economic Theory With this dissertation what I would like to achieve is the following: I will carry out extensive research on the economic theory behind booms and bursts. I will look at some of the booms and bursts throughout history. I will attempt to make my own economic model behind what caused a boom and its subsequent burst and see if this model can be applied to the economic situation of the property market in Dubai. If a number of variables existed that suggested a burst might be coming, why was nothing done to stop it? 1.2: A brief history of Dubai Thirty years ago almost all of modern Dubai was desert. In the mid 18th century a small nomadic group settled there and built a small town. This small towns underlying asset being pearls. The pearl trade attracted people from all over the middle east, all with dreams of prosperity. The town was named Daba after a local locust that consumed everything it encountered. This rapidly growing town was soon acquired by the Gunships of the British army. Britain maintained control of the area until 1971(The Independent2009). In 1971 Dubai and five surrounding sheikhdoms (Abu Dhabi, Al Fujayrah, Ajman, Umm al Qaywayn and Sharjah) agreed on a federal constitution and became The United Arab Emirates or UAE. In February 1972 a seventh Sheikhdom, Ras al Khaymah joined the UAE. At this point Sheikh Zayid Ibn Sultan Al Nuhayyan of Abu Dhabi became the first president of the UAE. The ruler of Dubai, Sheikh Rashid ibn Said Al Maktum was named vice president, and his eldest son, Sheikh Maktum ibn Rash id Al Maktum, the prince of Dubai, became prime minister. In 1990 Sheikh Maktum succeeded his father as ruler of Dubai and as vice president and prime minister of the UAE (Library of Congress2007). It was around 1971, as the British were leaving that oil was first discovered. However to say that Dubai relied on oil for its growth would be wrong. Dubai had very little oil relative to its neighbouring emirate Abu Dhabi. So Sheikh Maktum had to diversify. He used oil revenues to create something he thought sustainable. Israel used to boast it made the desert bloom; Sheikh Maktum resolved to make the desert boom (The Independent 2009). It became a hub for tourism and financial services, Attracting capital and expertise from all over the globe. He invited the world to come tax free, and people came in their millions. A city seemed to descend from the heavens in thirty years. Would it be sustainable? (Source : The Independent, The Dark side of Dubai, 7 April 2009) (Source: Country Profile : UAE. Library of Congress Federal Research division, July 2007) 1.3: From Boom to bust over night. I arrived in Dubai in 2007 at a point when it was said that a third of the worlds construction equipment was in Dubai. It was the second fastest growing city in the world (second to Moscow) and appeared to be one big construction site. Skyscrapers were appearing over night to cater for increases in demand in property. However, a large part of this demand for property was merely speculatory. Investments in property appeared to be highly attractive and beneficial, especially to foreign investors earning in non dollar currencies. I say this because the dirham is pegged to the dollar (3.75 dhms per US Dollar). It was around late 2007 early 2008 that the dollar reached its weakest point making property in Dubai cheaper to people earning pounds for example. People also assumed that the dollar would one day appreciate; therefore giving investors that extra incentive. Dubais popularity was rapidly increasing and it was booming in the true definition of the word. However in September of 2008 things changed. See the following line graph of average residential sales prices to appreciate the extent of the crash. Figure 1 Residential sale prices (AED/ft2) Source: Landmark Advisory Board 2010. As you can see in Q408 both the average price of apartments and villas plummet from a mutual peak of 1500 AED/ft2 to around 900 AED/ft2 from one month to the next. This is a massive average decrease of 40 percent. I will attempt to demonstrate why this rapid increase in residential prices occurred and its subsequent decline and decide whether the boom and bust can be considered a bubble bursting in its true economic definition. Literature Review The Economic Theory and History behind Bubbles 2.1 An introduction to bubbles Essentially an economic bubble is an increase in the price of an asset or stock above its fundamental value and its subsequent decrease in value and implosion on the bubble is referred to as a burst. When asset prices increase speculators are overwhelmed by a sense of euphoria, chasing short term capital gains. A phenomenon that former chairman of the federal reserve Alan Greenspan memorably called irrational exuberance (Nial Ferguson, The Ascent of Money). Contrarily, when speculators primitive instincts turn from greed to fear, the bubble created by the initial irrational exuberance can burst with astonishing abruptness; almost overnight. Charles Kindleberger defined a bubble as a sharp rise in price of an asset or a range of assets in a continuous process, with the initial rise generating expectations of further rises and attracting new buyers generally speculators interested in profits from trading in the asset rather than its use or earning capacity. The rise is usually followed by a reversal of expectations and a sharp decline in price often resulting in financial crises (Bubble, Bubble, Wheres the Housing Bubble?) The initial boost in augmentation of the economy acts as a catalyst for both lenders and investors optimism about the future and asset prices rise swiftly. Nial ferguson refers to investors as an electronic herd, happily grazing on positive returns one moment, then stampeding for the farmyard gate the next (Nial Ferguson, 2008, 2009). 2.2 Bubbles in History The big ten economic bubbles (Charles P Kindleberger, Robert Z Aliber 2005) 1. The Dutch Tulip Bulb Bubble 1636 2. The South Sea Bubble 1720 3. The Mississippi bubble 1720 4. The late 1920s US stock price Bubble 1927-29 5. The increase in bank loans to Mexico and other developing countries in the 1970s 6. The bubble in real estate and stocks in Finland, Norway and Sweden 7. The bubble in real estate and stocks in Thailand, Malaysia, Indonesia and several other Asian countries 1992-97 8. The bubble in real estate and stocks in Thailand, Malaysia, Indonesia and several other Asian countries 1992-97 9. The increase in foreign investment in Mexico 1990-93 10. The Bubble in over the counter stocks in the United States 1995-2000. Also known as the .com bubble Over and over again asset, security and stock prices have reached unsustainable highs and subsequently come crashing down. From boom to bust, this process is consistently associated with ruthless insiders exploiting asymmetries of information attempting to make a profit at the cost of first time investors. In Dubai, every three months or so Emaar one of the big real estate developers (of which it is alleged that the absolute ruler of Dubai, Sheikh Mohammed has a thirty percent stake) released property for sale at increasing prices, almost instigating the bubble themselves very similar to what John Law (a convicted murderer and gambling addict) did with shares of the joint stock company named Company of the West (Compagnie dOccident) which resulted in the Mississippi bubble of 1720(Nial Ferguson, 2008, 2009). All these bubbles in History have followed similar paths; Nial Ferguson believes it possible to dissect all bubbles into five stages. 2.3 Nial Fergusons Five Stage Model (Nial Ferguson, 2008, 2009) 1. Displacement: An incident or innovation in the economy that generates new and lucrative possibilities for investors/speculators. Kindleberger refers to this as the expansion stage of the business cycle (Charles P Kindleberger, 2005). In the cases of the Dutch Tulip Bulb, The South Sea and Mississippi Bubbles this displacement was the creation of the Joint Stock Company. In the case of the US .com bubble the displacement or expansion was innovations in technology like the internet. In Dubai It could be argued that the displacement stage of the bubble was when developments were open for sale to foreign investors as opposed to previously when only locals could purchase land and property. This initial process causes a rise in spending which leads to inflated prices and increased consumption which combined translate to economic growth. 2. Euphoria/overtrading: Rising expected profits induce the appreciation in value of assets and shares. Investment soars because credit is in abundance. In Japan in the eighties Japanese investors had access to mountains of credit made available by nave bankers that didnt even contemplate a crash and the Japanese went on an investment spree. In the US in the 1990s, during the time preceding the crash .dom companies had access to almost infinite funds from venture capitalists with distorted perceptions of the future profitability of these firms (Charles P Kindleberger and Robert Z Alibir). Dubai was the same pre crash credit was very accessible; I will asses this further in my analysis segment of the dissertation. 3. Mania/bubble: The anticipation of rapid, easy capital gains entices first time investors and unscrupulous, esoteric brokers cater for this demand, in a ruthless attempt to sell assets and shares before a crash, which a seasoned broker is capable of predicting. 4. Distress: Insiders become aware that prices of assets and shares exceed their fundamental values and exploit the asymmetries of information by selling at profit. 5. Revulsion/discredit: prices begin to plummet and the electronic herd stampedes to exit the market causing the bubble to implode. The value of commodities bonds, stocks, land, buildings and houses decline to levels that are 30 to 40 percent below peak prices (Charles p kindleberger and Robert Z . Aliber, 2008, 2009), this adheres perfectly to residential duelling prices in Dubai (refer to figure 1). (Nial Ferguson, 2008, 2009). The Fundamentals behind this model are asymmetric information, availability to rapid, relatively cheap credit and the capability of capital to flow freely over geographical borders. This five stage model is accurate but basic. I will now progress to more specific models in detail behind the creation and existence of economic bubbles. 2.4 The Hyman Minsky model of instability in the supply of credit. This model created by Hyman Minsky can be used to explain financial fragility in economies. Minsky focuses on changes in the availability of credit. During periods of growth the supply of credit increases and during economic slowdowns this supply decreases. In times of growth, usually following an economic displacement like mentioned in Nial Fergusons model, investors feel more confident about the profitability of a number of investments and seek to finance these investments with credit. In the meantime, lenders become more enthusiastic about providing credit, even for investments, that prior to the expansion, had appeared too risky they become far less risk averse, reducing minimum down payments, minimum margin requirements. For individual lenders the cost of borrowing has to remain competitive too to maintain market share. However, when the mood changes, the economy slows down and fear kicks in, investors act much more cautiously. Lenders react similarly and their risk averseness increases and they supply less credit. Minsky believed that these cyclical changes in the availability of credit are a major catalyst to financial instability and are a factor in causing bubbles (Charles p kindleberger and Robert Z . Aliber, 2008, 2009). I am certain that minskys model was apparent in Dubai and definitely a defining factor of the recent burst. I will go on to prove this in the critical analysis part of the dissertation. Minsky also mentions an over-estimate of prospective returns, or excessive leverage (Charles p kindleberger and Robert Z . Aliber, 2008, 2009) during the euphoric period. Speculation suggests the acquisition of assets for the capital gain from expected surges in their value as opposed to income generated by one of these assets or for their use. The income generated by an asset or the use of an asset is considered to be the fundamental value of an asset and in bubbles the prices of assets fluctuate far from their fundamental values. This point is made clearer in the next part of the literature review. Minsky also states that a sense of euphoria or depression in one country maybe contagious in another country. I believe that the recent housing bubble in the United States and its subsequent burst influenced the real estate bubble in Dubai and was a significant cause of the crash. 2.5 Fundamental Value Researchers seem to concentrate on one of the following elements when considering a bubble: rapid appreciation of assets, overly optimistic predictions of future prices, a discrepancy between price and fundamental value and obviously a vast depreciation of assets when the bubble pops (Margaret Hwang Smith and Gary Smith, 2006). Karl Case and Robert Shiller believe that A tendency to view housing as an investment is a defining characteristic of a housing bubble (Margaret Hwang Smith and Gary Smith, 2006). However, Margaret Hwang Smith and Gary Smith, in their 2006 journal titled Housing, Housing, where is the housing bubble? disagree. They argue that housing can be considered a legitimate investment and that the best way to spot a bubble is to determine the discrepancy between the actual prices of houses and the fundamental value of these houses. Speculators in general do not make an attempt to calculate the underlying value of a house, they respond to expected capital gains. Margaret Hwang Smith and Gary Smith define a bubble as a scenario where the equilibrium price of an asset is higher than the present value of the anticipated cash flow from the asset (Margaret Hwang Smith and Gary Smith, 2006). Nonetheless, fundamental values may rise rapidly (for example an increase in population and therefore an incre ase in the acquisitions of houses for their use as opposed to expected capital gains, or an increase in rent) may stimulate a legitimate increase in the prices of houses. Equilibrium house prices may also increase rapidly and not necessarily be considered a bubble if their actual price is lower than their underlying fundamental value. They state that the real defining characteristic of a bubble is when equilibrium market prices cannot be answered for by the assets anticipated cash flow. Case and Shiller refer to the real estate market as being populated by amateurs making infrequent transactions on the basis of limited information and with little or no experience in gauging the fundamental value of the properties they are buying and selling'(Margaret Hwang Smith and Gary Smith, 2006). If this is true and I believe it was, in Dubai, to a certain extent (through knowing investors on a personal level) how can one expect for fundamental values to equal market prices? Most agents within the real estate market i.e. brokers, buyers and sellers seem to use what is known as comps when dealing within the real estate market. Comps are the latest sale prices of homes with similar specifications within the same area. Comps tell us how much other individuals are prepared to pay but not whether these prices are justified by the fundamental value (Margaret Hwang Smith and Gary Smith, 2006). Attempting to demonstrate whether market prices differ from fundamental prices isnt easy. Figures for average real estate prices are infamously imperfect. This is mainly due to the fact that houses are not homogenous in their specifications and environments. However, the National City Corporation use a multiple regression which considers a ratio of house prices to household income in a given area to mortgage rates, population density, the ratio of household income in the given area to the national average and historical prices to determine how much actual prices deviate from their real values (Margaret Hwang Smith and Gary Smith, 2006). The reason a ratio of house price and household income is used is based on theory by Karl case and Shiller that argue that housing prices are a bubble waiting to pop if the average investor is priced out of the market'(Margaret Hwang Smith and Gary Smith, 2006). There are problems with this model e.g. the historic house prices may not be based on fundamental value. Some economists including Edward Leamer argue that if house prices have increased in a larger proportion than rents a bubble exists (Margaret Hwang Smith and Gary Smith, 2006). I will attempt to look at rents versus house prices in my critical analysis section of the dissertation to determine whether this was apparent in Dubai. I will also attempt to look at the population density because I believe that it is relevant to fundamental value because an increase in population causes an increase in the demand for residential properties that will be used as dwellings. Minsky stated that a fundamental value of an asset was to do with is use and the income (rent) generated from the asset. 2.6 A brief look at the recent financial crisis in the USA. Hyman minsky stated in his interpretation of a bubble that euphoria or depression in one country can be contagious and spill over into another. I believe that the bursting of the real estate bubble in the states and the subsequent lack of worldwide credit was highly influential in the bursting of Dubais housing bubble. As per usual the great real estate and leverage bubble in the US of 2007 was instigated by a pervasive macroeconomic displacement. Prior to the 2000s banks would give loans to home owners and keep those loans as assets in their books (Burton G. Malkiel, 2010). However, post 2000 the entire banking system changed. Banks carried on issuing loans for mortgages but instead of holding them as assets on their books they would keep them for a short period of time and then sell them on to investment banks who would bundle different loans with different credit ratings into mortgage backed securities, also known as collateralized debt obligations (Burton G. Malkiel, 2010). Loans are split into different risk classes or tranches. So, low risk loans and high risk loans are bundled together and sold as one financial product which was deemed a good investment. This caused deterioration in lending standards (Burton G. Malkiel, 2010). Employees in charge of originating loans to clients were reckless when assessing the risk of the individuals potential default especially when dealing with subprime mortgages because they knew that the bank was only going to hold these loans for a short period of time and then pass them on. Insurance companies were also insuring subprime loans with credit default swaps because they were too nave to foresee mass defaults. These innovations in the banking system made credit easily accessible to individuals who may have not been considered credit worthy before these changes (subprime). Many financial institutions held vast amounts of these new bundled securities based around mortgages and held less equity backed securities and increased their leverage ratios (Burton G. Malkiel, 2010) making them very vulnerable in the case of a crash. Highly accessible credit at attractive rates due to lowered lending standards led to a huge bubble in the prices of houses. The inflation adjusted price of a commonplace home was roughly identical in 1999 as it was in 1899; however, between 2000 and 2006 real home prices doubled (Burton G. Malkiel, 2010). This is portrayed in the following line graph based on data from the Case-Shiller home price index in the US. Figure 2 Case-Shiller Home price index, 1989 = 100. Source: (Burton G. Malkiel, 2010) As you can see from the graph there is a rapid ascent in prices from around 2000 followed by a quick fall in prices starting in 2007. Prices began to decline and euphoria turned to fear. Houses were worth less than the amount of money owed to the banks and individuals began to default in mass. With massive amounts of defaults occurring, the value of the bundled mortgage backed securities or collaterized debt obligations (cdos) decreased rapidly. Many highly leveraged financial institutions holding long term assets financed by the short term mortgage backed securities did not have sufficient liquidity to continue to function (Burton G. Malkiel, 2010). All credit markets were frozen, excluding the US Treasury securities markets and financial institutions did not have sufficient liquidity to cover their short term debts. In the case of a bank an example of a short term debt is a deposit and people began to fear for their deposits and runs on banks happened in the US and UK institutions with vast amount of money invested in the US housing market e.g. Northern Rock. The US government was forced to bail out a number of financial institutions to prevent a total financial collapse (Burton G. Malkiel, 2010). Banks all over the world became cautious about lending money. Amlak finance Dubai stopped lending money all together and I think this was significant in the bursting of the bubble; it ties in directly with Minskys model of cyclical changes in the supply of credit. Panic struck and a worldwide financial crisis ensued. 3 Critical Analysis In this section of my dissertation I will evaluate real life data and literature about the situation in Dubai. What caused the rapid increase in price in the housing market? and what caused the resultant rapid decline in prices. 3.1 Displacement. Economists appear to agree that every bubble starts with a displacement. A macroeconomic change, or innovation, that induces pervasive adjustments in how agents within the economy behave and perceive the future. It can also be considered a paradigm shift. In the case of the .com bubble the displacement was the availability of the interweb to mass users. In the case of the recent housing and leverage bubble of the US the displacement was innovations in the banking system and the creation of new bundled financial products and collaterized debt obligations. In Dubai I believe that there were three displacing factors: The first displacing factor occurred in May 2002. Dubai was never rich in oil like its neighbouring emirate Abu Dhabi so it focused on creating a hub for tourism and commerce. It also promoted the development of real estate. In 1997 publicly quoted Emaar Properties and Al Nakheel Properties were setup (http://realestate.theemiratesnetwork.com/articles/freehold_property.php). In 1998 emaar started developing the Dubai Marina and the Emirates Living Community; however, properties within these developments were released on leasehold contracts which mean that properties are leased out for ninety years as opposed to being owned freehold. These developments were not successful in the market. People were sceptical about the leasehold contracts. Things changed in May 2002 when the crown prince General Sheikh Mohammed bin Rashid Al Maktum implemented a new law, stating that ex pats were able to buy property in certain areas of Dubai. The following graph shows all transactions from 1994. The graph is based on data from REIDIN.com a company that provides data and information covering all deals and transactions in Dubai since 1973. The company is an exclusive partner of the Dubai Land Department the real estate registry for the emirate. (REIDIN, DUBAI FOCUS, 2010) Figure 3 Quantity of transactions in Dubai from 1994 (Reidin.com, DubaiFocus, 2010) The graph shows that as of the changes in law about the ownership of real estate from 2002 there is not a significant increase in the quantity of transactions. In fact, there is a decline in transactions until 2005 when quantity of transactions increase rapidly from there onwards. I would still, however, consider the innovations in the legislation behind the ownership of property a displacement because without the changes, ex pats would never have been able to own property on a freehold basis and the bubble would never have happened. I say this because the vast majority of investments into the property market have come from expatriate sources. See the following chart which depicts the value of transactions by nationality. Figure 4 Value (AED) of property transactions by nationality from 1973 (Reidin.com, DubaiFocus, 2010) As you can see from the chart foreign investment is very significant in value and this could never have happened if the changes in legislation had not been made. Also, cross border transactions are a key in the creation of a bubble and as you can see from figure 4 cross border transactions are huge. Another displacing factor was hype generated by the media about talks of a new GCC currency called the Khaleeji. Talks were being had about the possibility of the UAE, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain creating a new currency for their states. These talks were being had around 2006/2007 and nothing was ever finalised but if it was to happen, especially at a point in time when the dollar was weak, this new currency would be valued higher than the specific currencies of the gulf states and investments in these countries would appear even more attractive to speculators as they would rise in value from the creation of a new currency. This ties in with the next displacing factor which is the weakness of the dollar due to financial fragility in the US. In the Spring of 2006 the dollar weakened dramatically due to financial instability in the US. Towards the end of 2006 it looked as if the exchange rate was rising towards $2. In April 2007 the Dollar depreciated to over $2 and on the 27th of July 2007 it got to $2.06 the weakest it has been since 1981, it continued to fluctuate around $2 for the next five months and on the 9th of November 2007 it was $2.11. After this point, on average, the pound began to decline in value as the global recession hit the UK. The importance of this analysis about the dollar exchange rate is that it shows that from around 2006 until 2008 the dollar was relatively weak compared to the pound. Transactions for Real Estate were booming during this period as portrayed in figure 3 and a huge portion of these transactions were fuelled by investment from the United Kingdom as portrayed in figure 4. I therefore believe that the weak dollar was statistically significant in the increase of transactions from UK investors. The exchange rate of the Dollar versus the Indian Rupee shows a similar story. From around January 2007 the dollar declines in value against the rupee to a peak of around 39 rupee to the dollar. Compare this to a value of around 55 rupee in 2003. Again the weakness of the dollar compared to the Indian rupee can be argued to have catalysed vast investment from Indian investors from 2006 as the dollar was depreciating until late 2008 when the global crisis begun to have consequences on other nations e.g. India and the UK. I therefore consider this a displacement which lead to increases in transactions, increases in prices of property and overly optimistic expected prices. Refer to graphs of the dollar exchange rates versus the pound and rupee in the appendix section of the dissertation. 3.2 Euphoria/overtrading If you refer back to Nial Fergusons five stage bubble model you will see that after a pervasive macroeconomic displacement in the economy, if it is tending towards a bubble situation, an economy will experience euphoria, also referred to as overtrading. Rising expected profits induce the appreciation in value of assets and shares. Investment soars because credit is in abundance. If you refer back to figure 1 you will see that prices begin to rise steadily from 2005/2006. The number of transactions also increases rapidly from around the same period. Nial Ferguson also talks about the abundance of credit; this too ties in with minskys model of the pro cyclical supply of credit. It implies that many of these transactions were fuelled by credit or leveraged. Again this is similar to what was happening in the US before their crash. The following line graph shows the percentage of residential transactions fuelled by credit or leveraged. I have also included the percentage of residential transactions that are classed as other. I have put other transaction types into the equation because a substantial amount of transactions are classed as other. other refers to transactions that are none of the following transaction types: sale, mortgage, leasing, valuation, grant, rent, compensation and pre-registration. Im not entirely sure as to what types of transaction would be considered as other. This, I will consider a limitation in my data; however, this is data provided by a governmental entity and censorship is alive and well in Dubai. Figure 5 Percentage of residential transactions leveraged with credit. What figure 5 shows is a steady increase in the percentage of transactions fuelled by credit until 2006 when there is a vast decline in this percentage and a continuous decrease until 2009. I wonder if the global credit crunch caused by the US crash hit Dubai much earlier than people thought, however why did prices not stop falling until late 2008/2009?. There is a visible pattern here; as transactions leveraged by mortgages decreases, transactions classed by Dubai Land Department the real estate registry for the emirate as other increase. This appears to be rather dubious in my opinion; maybe the global credit crunch hit Dubai but in an attempt to maintain high prices until ruthless inside investors with asymmetries of information could leave the market with huge profits the quantity of transactions was kept high by the government, who have invested interests. Emaar Properties and Al Nakheel Properties are publicly quoted companies but ownership is predominately by wealthy governme ntal authorities. We all know that OPEC controls the supply of oil to maintain high prices; maybe something similar happened with property in Dubai. Nial Ferguson does mention ruthless inside investors have played a significant role in past bubbles; I think this could be apparent here. (Nial Ferguson, 2008, 2009). The graph shows that vast amounts of credit were used to leverage investments until 2006 when the amount declines rapidly. Probably because banks were influenced by the credit crunch in the US and feared they may have inadequate liquidity. I will analyse the pro cyclical supply of credit in a later section of my dissertation. 3.3 Mania/Bubble and distress Nial Ferguson refers to the next the next stage as mania or bubble, where first time investors are enticed to the market and seasoned investors who can predict a crash scramble to sell their investments at a profit before the crash. If you refer back to figure 3 that shows the quantity of transactions I would say that the mania/bubble stage was occurring from 2007 to 2008 at when the quantity of transactions are skyrocketing. At this point too, prices are still very high (refer back to figure 1). The closer to late 2008 the sillier the investment, as bubble bursts in october 2008. Therefore transactions around about this time have to be from first time investors who cannot see a crash. This is referred to by Nial ferguson as the distress period. 3.4 Revulsion/discredit Prices begin to plummet and the herd stampedes to exit the market causing the bubble to implode. This is apparent in late 2008 and 2009. Transactions stay high (Figure 3) but prices are declining rapidly (40 percent on average). So, investors are struck by fear and rush to sell properties even if it is done at significant los

Who Should Be the Determining Factor? Essay -- Gay Marriage Homosexual

Who Should Be the Determining Factor? In today’s society more people are getting engaged in gay marriages and becoming more open to society. From our society changing from a highly conservative rate to a more liberal state, this will increase the amount of open mindedness towards gay marriages. These two short arguments represent the pros and cons of gay marriage; and why gay marriages should be allowed. Andrew Sullivan will be discussing why gays should be allowed to be married. In contrast to Sullivan, William Bennett wrote a response to give a heterosexual perspective. Throughout this paper there will be numerous summarizing and synthesizing for the two arguments. Because there is two such different points of views this helps the contrast of both. In my synthesis there are topics that relate to Bennett and how he doesn’t have a strong enough back up to say who should and shouldn’t get married. In the essay, â€Å"Let Gays Marry,† by Andrew Sullivan, there were a few main arguments stated. In the document, Sullivan claims that gays and lesbians want the government to enable the law so it lets gays get married. They presented themselves in front of the Supreme Court and in fact, this was the first time they actually got some acknowledgment. Gays and lesbians are going to want to be together (some are lucky enough to meet that special someone), basically why not give them the right to be an equal citizen? The fact that churches do not want them to get married is not the focus; the difference is that Sullivan wants the government to take action. He’s simply asking for the government’s approval to allow a civil marriage. No one has the choice to be white, black, female, male, gay, hetero, etc. As a response to Bill Bennett,... ...on different scenarios. In the beginning half of the paper there is a summary of both stories, â€Å"Let Gays Marry† and â€Å"Leave Marriage Alone.† Basically in â€Å"Let Gays Marry,† it discusses how gays feel towards the society and how they don’t want to be second- class citizens. Also, it explains you cannot choose to black, white, gay, etc... In â€Å"Leave Marriage Alone,† Bennett believes that it will hurt the heterosexual marriage institution. Within the essay the focus was mainly on how same sex unions go against Church and God. Lastly, based on a 4,000 year tradition nothing should be adjusted. I believe that the contrast and summarizing was the main outcome of the essay. Clearly this represents two people who have very strong and different perspectives/personalities. In the end there will be the good/bad aspects of gay marriages, people will always feel uncomfortable.

Epiphany in Araby of James Joyces Dubliners Essay -- Joyce Dubliners

Araby: An Epiphany  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The story, "Araby" in James Joyce's Dubliners presents a flat, rather spatial portrait. The visual and symbolic details embedded in the story, are highly concentrated, and the story culminates in an epiphany. An epiphany is a moment when the essence of a character is revealed , when all the forces that bear on his life converge, and the reader can, in that instant, understand him. "Araby" is centered on an epiphany, and is concerned with a failure or deception, which results in realization and disillusionment. The meaning is revealed in a young boy's psychic journey from love to despair and disappointment, and the theme is found in the boy's discovery of the discrepancy between the real and the ideal in life.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The story opens with a description of North Richmond Street, a "blind," "cold ... .. silent" street where the houses "gazed at one an-other with brown imperturbable faces." It is a street of fixed, decaying conformity and false piety. The boy's house contains the samesense of a dead present and a lost past. The former tenant, a priest,died in the ba... ...stern enchantment." His love, like his quest for a gift to draw the girl to him in an unfriendly world, ends with his realizing that his love existed only in his mind. Thus the theme of the story-the discrepancy between the real and the ideal-is made final in the bazaar, a place of tawdry make-believe. The epiphany in which the boy lives a dream in spite of the ugly and the worldly is brought to its inevitable conclusion: the single sensation of life disintegrates. The boy senses the falsity of his dreams and his eyes burn "with anguish and anger."   

Hawaiian Goose :: essays research papers

Hawaiian Goose The Branta sandvicensis, or Hawaiian goose looks similar to the Canada Goose except only the face, cap, and hindneck are black; and Nene have buff- colored cheeks. The males and female have the same plumage. The feet of this goose are not completely webbed like the other geese. Lots of calls have been described but the most common call is very similar to that of the Canada Goose, a resonate "honk." The goose has very strong toes; long legs, decreased webbing. They are good swimmers but are not found much near water. The birds nest on the ground and the young can fly at 1012 weeks. The adult Goose cannot fly while in molt for 46 weeks. Wild Nene populations can be seen in Hawaii Volcanoes National Park, Mauna Loa, and Pu'u Wa'awa'a on the island of Hawaii; in Haleakala National Park on Maui; and at the Kilauea National Wildlife Refuge, along the Na Pali coast and outside Lihue on Kauai. Captive Nene can be seen at he Honolulu Zoo. Designated Hawaii's State Bird on May 7, 1957, the Nene has endured a long struggle against extinction. During the 1940s this species was almost wiped out by laws which allowed the birds to be hunted during their winter breeding seasons when the birds were most vulnerable. By 1957, when the Nene was named the State Bird, rescue efforts were underway. Conservationists began breeding the birds in captivity in hopes of preserving a remnant of the declining population and, someday, successfully re-establishing them in their native habitat. Other programs for returning captive birds to the wild life was difficult, but more efforts have been successful. Some other efforts used to help this bird have been to get donations for the bird and have schools help out

Globalization and State Power Essay

As a relatively new concept in the context of social sciences, globalization is the considerably the universal tool that embodies sets of processes that connect societies thus fragmenting and transcending the social structure it confronts (Krieger, 2005). The state then serves as an indispensable institution under practically all projected contingencies, but does countenance new and influential challenges to its foundational mandates mandates. The multifarious debates on globalization has increasingly centered on the relation of the nation-state to economic schemas. Although such connotation is gradually misbranded in rationale, either the nation-state or the inter-state classification is seen retaining its primacy as the axis of international relations and world development. The coining of â€Å"strong state,† is it perceived that the state, having been considered as the bridge of globalization in a dualist construct that posits separate logics for an expanding economy and political system (Williams, 2002). In the international community, it can be observed that the states, leaders, or other individuals who have the power in the international community has a large influence, either deliberate or unintentional, over the decision of other states, leaders or other individuals. The affairs of every single nation can be noted as unique in many ways (Patterson, 2000). Direct intervention from external elements such as the other states may very well diminish the sovereignty of a nation over its own territory. This is to say that every nation has a primordial reign over its own domain which guarantees—or ought to guarantee—the idea that the state is supreme in terms of power in its own land (Kacowicz, 1993). But what happens to this power in the context of a large international community with varying degrees of capabilities, resources and, ultimately, political power? Analysis on the social-spatial distinction and power of globalization The socio-spatial distinction and power of globalization, which at hand is then inherited to the state, is apparently what makes globalization not only a tool for reaching almost all the corners of the globe, but including the long-term series effects which shall surface. Consequently, how the state responds when globalization is escalating will have a noteworthy impact on its capability to retort when globalization falters. Since the state possess both governmental and corporate power, scholars point out the fact that corporate capitalism is the blood that keeps holds all nations and binds them up together despite the issue of diversity. Thus, it is through the philosophy of social justice that these factors are evaluated. Synthesis on the role of a state in the context of globalization The sources of power in international relations can then be presumed to result primarily from the resources of the state or leader. These resources need not essentially correspond to financial resources for there are many other resources that can empower a state or a leader in international affairs. One of these resources is manpower which China and India can be noted as wealthy of. How does manpower become a source of power in international relations? The answer can be traced from the presumption that more people means more hands capable of contributing to the workforce. Although the industrial revolution and information and communications technology have radically altered the demand for manpower, it can be observed that the expansion of industries and technology further required additional manpower. With states such as China and India a cut above the rest in terms of manpower, the amount of industrial production from within the state relatively becomes higher than those states with very minimal workforce. And while a healthy local industry boosts a state’s economy, sending manpower to foreign countries further amplifies the possibility of expanding the gross income of the nation (Krieger, 2005). For the most part, a financially wealthy nation has more purchasing power in many ways which gives it the capacity to take control over resources and manipulate them according to the interest of the state (Williams, 2002). The geography of a certain state also gives it power, specifically strategic power, in wielding a dominant force not only in terms of military affairs but also in terms of commerce and trade or economic progress. For the most part, a state which is situated within the perimeter of an adjacent state is expected to have a form of trade relations (Krieger, 2005). Communication also becomes inevitable between these adjacent states since borders separating them become diminished through wireless communication. For instance, a nation such as Italy surrounded by neighboring states is very much alive in terms of trade and commerce, giving it the economic power in contrast to ‘isolated’ states (Williams, 2002). Conclusions and further remarks To presume that the definition of power is a not static concept is to presume that the essence of power changes such that at one point it may refer to competence to manage and manipulate resources in harmony to the interest of the state or of leaders. On another point, it may not refer to the opposite such as the competence of the lower class or of the members of the state to yield and manipulate resources. Yet this presumption is misleading for the reason that the parallels of both instances are masked by the idea that leaders does not include the larger members of the state or that the members of the state do not include the leaders of the state. Clearly, how the state responds to globalization depicts its power and capabilities. References Kacowicz, A. M. (1993).Teaching International Relations in a Changing World: Four Approaches. Political Science and Politics, 26(1), 76-80. Krieger, J. (2005) Globalization and State Power: A Reader. New Jersey: Longman. Patterson, A. S. (2000). It’s a Small World: Incorporating Service Learning into International Relations Courses. Political Science and Politics, 33(4), 817-822. Williams, J. (2002). Kill ’em All’: The American Military in Korea. Retrieved January 21, 2008, from http://www. bbc. co. uk/history/worldwars/coldwar/korea_usa_01. shtml