A Brief History of Parody Advertisements Essay - 895 Words

In society parody advertisement is commonly used to draw attention to common issues in society that are normally overlooked. The first type of parody advertisements were caricatures. In history caricatures were used to prove a point in politics. Today most parody advertisements express views on alcohol, drugs, and other common issues that people struggle with to â€Å"fit-in† with society. A few examples of parody advertisements are Absolute on Ice, Barcode Escape, and Feed Me Spoof. These parody advertisements deal with issues such as: drinking and driving, underage drinking, money controlling society, the thrifting movement, and anorexia nervosa. These are common issues that have been around for years but in recent years they have become a†¦show more content†¦This is a good advertisement to show how trapped people are behind material objects. People label each other behind what they can and can not afford. Certain people allow money to control their life never real izing that they are imprisoned by the very thing they thought they could not live without. This advertisement can be considered a visual for the saying â€Å"the best things in life are free.† If a person spends their life worrying about material things then they have spent their life imprisoned by the barcode. Barcode Escape can also be used to advertise how the lower and middle class society operates today. The people who can not afford name brand items are finding a way to get the same looks at cheaper prices. Therefore you can say that they are breaking free of the barcode. They are breaking free from spending a lump sum of money on one item and they saving by buying less expensive things. Thrift store shopping has become a big hit among the middle class and this advertisement can be a symbol of the thrifting movement. Parody advertisement Feed Me Spoof deals with the most common issues among girls today, the urge to be super model thin. The advertisement depicts model Kate Moss looking unhealthy with the words â€Å"Feed Me† next to her head. Moss’s face looks sunk in and her body seems to be very fragile. Nothing about this picture screams glamorous, which modelsShow MoreRelatedCoca Cola s Anti Obesity Advertisement1307 Words   |  6 Pagessomehow. However, even though so much evidence against any health benefits of Coca Cola have come out, the company really should not be marketing to the point where the advertisement is on the border of being propaganda versus persuasion. A YouTube video by the name of â€Å"’Honest’ Version of Coca Cola’s Anti-Obesity Advertisement!† parodies a famous Coca Cola ad entitled â€Å"We Can Beat Obesity.† While it may be morally wrong for Coca Cola to hide pieces of the truth from the public, the company’s job isRead MoreCoca Col An Evaluation On Running The Campaign3551 Words   |  15 PagesAmerica, the brand would face greater risks; but better rewards are present as well (Bodden, 2008). Therefore, if I were Jonathan Mildenhall, I would recommend to introduce ?Share a Coke? campaign in the USA. Chapter 1: Origins of Coca-Cola History In 1886, Coca-Cola was born in Atlanta, Georgia, America. It offers a carbonated beverage as its trademark product that holds a large part of every consumer?s life known as Coca-Cola. At present, there is 1.7 billion consumers drinking Coca-Cola?sRead MoreInfluences of Advertising to Consumer Attitude Towards Buying a Product4796 Words   |  20 PagesTHESIS STATEMENT Advertisements are lifeline of companies. It persuades customers to buy their product. Everyone can use advertisements but they must obey the law. There are many types of advertisement that can influence consumer’s attitude to buy a product. The researchers think that TV ad is the most influential type of advertisement because most people watch TV and unlike other advertisements TV ad has the ability to convey your message with sight, sound, and motion. they more accurate to influenceRead More Tracing the Rap/Hip-Hop Dichotomy in Popular and Underground Music3130 Words   |  13 Pagesnot violence, misogyny, and narcotic substances—if you believe that, then the media and commercial mainstream music buyers have you sadly confused (Mindless Music Sc 1). I will attempt to flush out this rap/hip-hop dichotomy by indulging a brief history of the musical form, examining criticisms and defenses of the branch of the form Ill define as rap, and investigating a few hip-hop gro ups that present thoughtful, positive worldviews rather than the sex/drugs/money/violence messages of theirRead MoreCoco Cola18335 Words   |  74 Pages10  Sponsorship * 10.1  Sports * 10.2  Television * 11  In video games * 12  See also * 13  References * 14  Further reading * 15  External links | ------------------------------------------------- Acquisitions[edit] The company has a long history of acquisitions. Coca-Cola acquired  Minute Maid  in 1960,[6]  the Indian cola brand  Thums Up  in 1993,[7]  and  Barq s  in 1995.[8]  In 2001, it acquired the  Odwalla  brand of fruit juices, smoothies and bars for $181  million.[9][10]  In 2007, it acquired  FuzeRead MoreChildrens Literature13219 Words   |  53 Pages1. Introduction 3 2. Early History 6 The Greek and Roman Eras: 50 B.C.-A.D. 500 6 The Middle Ages: 500-1500 6 The Renaissance: 1500-1650 7 The Rise of Puritanism and John Locke: Late 1600s 8 3. Beginning of Children’s Literature: Late 1700s 10 4. Fairy and Folk Tales 12 The Golden Age of Children’s Literature: Late 1800s 12 5. Victorian Childrens Literature 16 6. Contemporary Childrens Literature 18 6. Analysis of Harry Potters’ series 21 7. Conclusion 30 8. Summary 31 Children’s Literature DefinitionsRead MoreFeminine Mystique12173 Words   |  49 PagesSupplemental Reading for US History 2 From Rosie to Lucy Questions students must answer in a 500-word (minimum) essay: 1) Describe the post-WWII frustrations felt by women such as Betty Friedan. 2) During the era of â€Å"Rosie the Riveter†, what gains did women make in the workforce? How did these women feel about themselves and their contributions? What did society as a whole think? 3) What role did mass media play during the 1950s and 1960s in regard to supporting or undermining theRead MoreDesigning a Customer Driven Statergy23698 Words   |  95 PagesKing targets these Super Fans openly with ads that exalt monster burgers containing meat, cheese, and more meat and cheese that can turn â€Å"innies into outies.† It’s â€Å"Manthem† ad parodies the Helen Reddy song â€Å"I Am Woman.† In the ad, young Super Fans who are â€Å"too hungry to settle for chick food† rebel by burning their briefs, pushing a minivan off a bridge, chowing down on decadent Texas Double Whoppers, and proclaiming â€Å"Eat like a man, man!† Although such ads puzzled many a casual fast-food patron

Dna Editing System For A Type II Crispr System Mechanism

CRISPR/Cas9 DNA editing system is a prokaryotic immune system that becomes resistant to foreign genetics such as plasmids. CRISPR stands for Clustered Regularly-Interspaced Short Palindromic Repeats, which are prokaryotic DNA strands that have a short repetition base sequence. Cas9 is a nuclease enzyme that is used to cut into DNA strands that are associated with CRISPR type II. CRISPR/Cas9 system has several advantages when using this technology in the biological and biomedical sciences. It also has a few disadvantages that cause concerns when using this system in the medicine field. However, before all of this can be discussed, a depth of what CRISPR/Cas9 is and where it comes from and why is it important to the biology field. There are many highly diverse Cas (CRISPR associated) proteins but only one that is mainly used, which is Cas9.1 Which Cas9 derivative is found on the gRNA that contains plasmid, which are associated with CRISPRs type II in the bacterial immune system. Cas9 is an important asset to a type II CRISPR system mechanism that is required for gene silencing. Cas9 protein engages in the processing of crRNA and is also responsible for eliminating the target DNA in the type II CRISPR system.1 Cas9 function as an RNA guide for the DNA endonuclease enzyme that is involved with CRISPR adaptive immune system. CRISPRs is a DNA direct repeats found in many prokaryotic genomes, that have four CRISPR-associated protein families.12 Cas1 through Cas4 occur near aShow MoreRelatedThe And Viruses And Their Biological Function Essay1527 Words   |  7 PagesCRISPR loci are first identified in archaea and bacteria when they systematically drew attention from scientists with their biological function to fight phages and viruses (Hsu, Lander, Zhang, 2014). Structurally, a clustered set of Cas (CRISPR-associated) genes and a unique CRISPR array constitute the CRISPR loci. The CRISPR array was further comprised of short repetitive sequence interspaced by distinctive sequences (spacers) in correspondence with exogenous genetic bits (protospacer). The naturalRead MoreDevelopmental History : The Crispr Technology Originates From The Bacterial Research933 Words   |  4 PagesDEVELOPMENTAL HISTORY OF CRISPR-CAS9 The CRISPR technology originates from the bacterial research, and about one decade’s efforts have been devoted to study its underlying molecular mechanism. The developmental history of the CRISPR-Cas9 system has revealed that how basic biological research will drive the progress of biotechnologies and therapeutic methods. The story of this novel technique began in 1987 when Japanese researchers Nakata and his colleagues observed a series of 29nt DNA repeats interspacedRead MoreOrigin : Bacterial And Archaeal Adaptive Mechansim Essay1640 Words   |  7 PagesBackground Origin: Bacterial and Archaeal Adaptive Mechansim CRISPR loci are first identified in archaea and bacteria when they systematically drew attention from scientists with their biological function to fight phages and viruses (Hsu, Lander, Zhang, 2014). Structurally, a clustered set of Cas (CRISPR-associated) genes and a unique CRISPR array constitute the CRISPR loci. The CRISPR array was further comprised of short repetitive sequence interspaced by distinctive sequences (spacers) in correspondenceRead MoreOrigin And Development Of Crispr Cas9 System Essay1620 Words   |  7 PagesOrigin and Development of CRISPR-Cas9 System CRISPR loci are first identified in archaea and bacteria when they systematically drew attention from scientists with their biological function to fight phages and viruses (Hsu, Lander, Zhang, 2014). Structurally, a clustered set of Cas (CRISPR-associated) genes and a unique CRISPR array constitute the CRISPR loci. The CRISPR array was further comprised of short repetitive sequence interspaced by distinctive sequences (spacers) in correspondence with exogenousRead MoreThe Is The Most Common Organisms On Earth1565 Words   |  7 Pagesinfect bacteria by injecting single-stranded DNA into their host cell, thereby altering the genetic code of the prokaryote. Once transcribed and translated, the injected DNA changes the function of the cell, often killing the host cell in the process (3). Over eons, archaea and some bacteria have adapted to such attacks with CRISPR-Cas systems, also known as clustered regularly-interspaced short palindromic repeats. The bacteria incorporate invading vir al DNA into their genetic material in between redundantRead MoreThe Role Of Bacterial Defense Systems Against Viruses1029 Words   |  5 Pagesover time to become masters of survival . An example of this is bacteria, which have existed for nearly 3.5 billion years (1) and have evolved CRISPR/Cas as a mechanism of defense against exogenous sources such as bacteriophages . CRISPR (clustered randomly interspaced short palindromic repeats) was first discovered in 1993 by Francisco Mojica (2).The CRISPR locus contains spacers, motifs, and associated genes related to the locus to help with the destruction of target sequences. The application ofRead MoreEssay On CRISPR Casr787 Words   |  4 Pagessequences of repeated bases with unique spacer DNAs between them in iap gene in E. coli. Later additional research found that many bacteria (40%) and archaea (90%) contained similar regions. This region was named Clustered Regularly Interspaced Palindromic Repeats in 2002. The uses of CRISPR ca s9 can revolution the world of medicine. The development of this technique can be the key to cure many diseases. According to GeneScript â€Å"CRISPR/Cas9-mediated gene editing is a powerful technique that allows youRead MoreGenome Editing Essay790 Words   |  4 PagesIntroduction Genome editing is a huge leap forward in science and medicine. Because of recent advances in technology, the study of genes and induced ‘point’ mutations have led to the discovery and advancement of methods previously used in order to mutate genes. The development of Clusters of Regularly Interspaced Short Palindromic Repeats (CRISPRs) and CRISPR associated system 9 protein (Cas9) technology is a hugely significant leap forward as this is a tool that could potentially be used for theRead MoreCase Analysis : Crispr Cas Immunity941 Words   |  4 PagesIII. Overview of CRISPR-Cas immunity Recent advances in molecular techniques and bioinformatics analysis has allowed for the isolation and the sequencing of a large number of prokaryotic genomes which has led to the discovery of many unknown genes. First discovered in 1987, the CRISPR-Cas system is a prokaryotic adaptive immunity defense system that confers resistance against invading nucleic acids, either viral or plasmid. In other words, if an intracellular parasite (such as a phage or a plasmid)Read MoreOverview Of CRISPR-Cas9 Technology : How To Revolutionise Medicine1028 Words   |  5 PagesCRISPR-Cas9 will Revolutionise Medicine Clustered regularly interspaced short palindromic repeats (CRISPR)/CRISPR associated (Cas) protein 9 is a type II CRISPR system that is an adaptive immunity mechanism acquired by bacteria to protect it from viruses and phage. Utilization of this process could have the potential to revolutionise medicine due to its genome editing capabilities. CRISPR-Cas9 can act as an exceptional tool for functional genomics which can allow us to understand phenotypic and physiological

Competitive Strategy Techniques for Analyzing

Question: Discuss about the Competitive Strategy Techniques for Analyzing. Answer: Introduction: A vision statement provides information related to the purpose and values of the organization. It provides information related to where the company want to be. In addition to this, the mission statement provides information related to the processes through which attains the vision of the company. It provides information related to the primary objectives of the company related to the customer needs and values. Mission statement communicate the information related to the present which helps in the achievement of the determined goal in the future. Along with this, vision statement provides the information what the company wants to achieve in the future. Changes can be made in the mission and vision statement but there is a need to consider their alignment to the foundation of the organization (Sabrautzki, 2010). The vision statement of Billabong states that it focuses on establishing new standards in the board sports in a continuous manner by making changes in the lifestyle brands and experiences of youth. In addition to this, the mission statement of the company states that the company has a aim of expanding its business operations in different geographical locations. Besides this, it also has a purpose to create value for its customers and deliver returns to the shareholders . Yes, the vision and mission statement of the company Billabong International is impactful, succinct and inspiring as these statement explicit the aim and objectives of the firm. It states that the company is carrying out different business operations and activities to meet the needs and demands of its stakeholders (Sabrautzki, 2010). The stakeholders of the firm are those entities and individuals who have an interest or stake in the activities, processes and operations carry out by the business. In case of the vision and mission statement of Billabong, there is an emphasis on different stakeholders such as customers, shareholders and employees of the organization. The fulfillment of the needs and demands of these stakeholders helps in increasing the profitability of the company. Besides this, it also facilitates the company to gain competitive advantage over its rivals (Sabrautzki, 2010). Porters five forces model for Barracuda Inc Threat of substitutes: There is an increased number of substitutes available in the market due to the existence of large number of companies in the country. This the reason, that there is an existence of high threat from substitutes in the industry. Buyers can easily switch to substitute products available in the market (Porter, 2008). Intense industrial rivalry: There is an existence of intense competition in the market as there is an existence of approximately 2500 home furnishing firms in the market. This has result in the occurrence of highly competitive business environment in the industry (Porter, 2008). Threat of new entrants: There is also an existence of threat from new entrants as it requires low capital to enter into the industry. Besides this, no firm has a large market share in the country. The net profit of the companies existed in the industry ranges between 4 %to 5% (Porter, 2008). Bargaining power of suppliers: The bargaining power of suppliers is medium as there is an existence of large number of suppliers of home furnishing products. This enables customers to bargain with suppliers for the product (Porter, 2008). Bargaining power of buyers: There is an existence of high bargaining power of buyers as there is a presence of large number of firms in the market for the home furnishing products (Porter, 2008). The company might be successful and gain competitive advantage over other players in the market if it brings innovative products at low prices with high quality in the market. This results in attracting more number of customers towards the product (Porter, 2008). The three major parts of the external environment include social environment, economic environment and technological environment. Social Environment: It is requisite for the company to track the changes taking place in the tastes and preferences of the customers in order to fulfill their unmet demands. In context to this, Barracuda is required to understand the changing demands of the customers as there is an existence of large number of rival firms in the industry. Fulfillment of the demands and needs of the customers in a proper manner results in increasing the satisfaction level of the customers (Webster, 2010). Economic Environment: There is an existence of low entry barriers due to which new firms can enter into a market and grab the opportunities available in the market. This helps in increasing the sustainability of the firm. In context to Barracuda, there is an existence of 2500 home furnishing firms and the profit of the companies ranges between 4 to 5%. There is a need to bring innovation in the products as there is an existence of price competition among the firms in the industry (Webster, 2010). Technological Environment: Rapid changes have been taking place in the technologies used by different firms. It is necessary for Barracuda to adopt new technologies and make investment in research and development to bring new features in the home furnishing products to gain a competitive edge over its competitors. On these three aspects, it is necessary for the companies to collect information as it has a significant impact on the business operations and has affects the financial position and performance of the company. This also helps in analyzing different opportunities and threats available in the market for the company (Webster, 2010). There are different value chain activities that provides competitive advantage to Heartsongs which include procurement, inbound logistics and technological development. The company procures heart valves from the suppliers at the time of the demand of the heart valves by the customers. In addition to this, the company provides payment to the suppliers after the use of the heart valves in the surgery. The company has also made investments in research and development to adopt the new technologies available in the market to attract more number of customers (Dheur, 2015). The company has arranged an outsourcing of the transportation of the heart valves from the warehouses at a short notice by EdFex. EdFex has a secured warehouse where the heart valves can be stored easily and made available to the company at short notice. In this way, it helped a company to gain competitive edge over other rivals in the market (Dheur, 2015). References Dheur, M. 2015. Sustainable value chain management: delivering sustainability through the core business. Springer. Porter, M.E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Simon and Schuster. Sabrautzki, S. 2010. Strategies, mission, vision, goals. GRIN Verlag. Webster, R.M. 2010. Management of risk: guidance for practitioners. The Stationery Office.

(PDP) Personal Development Planning

Question: Write an report PDP or personal development plan? Answer: Introduction This report is on PDP or personal development plan. A person who wants to purse event management in the future must have the following skills and knowledge to get ahead in the field. Use of social networking sites for branding purpose is discussed in this report. Computer literacy skills that are required for an individual is discussed in this report. Personal Development Planning PDP is a useful apparatus for experts and students who yearning to accomplish qualification in their individual or sought field (Beausaert, Segers and Gijselaers, 2011). PDP utilizes the idea of reflection with the goal that one can be on the same track. All the progressions that are obliged to be taken in their life to keep them on track and to enhance the feeble spot, self-awareness arrangement is obliged. It empowers one to see and evaluate their change and helps them to figure out what aptitudes are needed in not so distant future. It helps one towards building achievement and objective setting. Students who are keen on seeking after Event Management can fabricate a vocation in arranging occasions. Students of event management need to arrange occasions like celebrations, services, shows, convections, meetings and gatherings. The most essential angle in occasion administration is to comprehend the gathering of people. Event management alludes to the procedure of facilitating and a rranging an occasion. The requests for individuals who are included with occasion arranging have expanded with the progressing time. Using Social Media To Create A Proffesional Brand Online social sites like Facebook or the blogging site Twitter may offer appealing distractions to the users, but can prove to be effective for brands: Online social sites like Twitter are prodigiously fertile spaces to gather ad business or commerce. This shortly became a method for product promotion and marketing on social globe, whereas, the organizations started to use online websites or communities for driving traffic and developing contacts to their individual websites. Now a day, online social sites form the chief tool of social media promotion. The most frequently used websites that have become radically popular over these last couple years are Facebook and Twitter. Apart from these two, there are some other online sites such as My Space, LinkedIn, StumbleUpon and Digg. Facebook is a online social site which helps colleagues and friends to express views through posting Comments, Wall Posts, and Messages. Facebook has more than three fifty million individuals and has more than 2 million ticks for each year. Measurements express that clients spend a normal of 20 minutes for every day in Facebook. The propelled functionalities of Facebook permit the clients a more drawn out timeframe of realistic usability. A client can see your documents, which are over 5 years of age. With such heavenly elements, Facebook soon turned into one of the lethal apparatuses of SMO and SMM. Organizations, particularly little scale business houses began utilizing the medium of Facebook to advance their brands and administrations. Computer Literacy Skills As we progress into the digital age, computerized innovation just keeps on thriving and turns out to be logically more key in our lives. PCs are all over and more almost everybody who works or wishes to contribute completely inside American culture is being required to be PC proficient, even only for regular living. In the home individuals are utilizing, and expecting to know how to utilize PCs for such a wide assortment of assignments as shopping internet, making travel planes, research, texting, keeping money, and paying bills (Epperson, 2010). What was initial a novel help is currently turning into a totally crucial apparatus for a gigantic amount of every day employments in the home, as well as in a logically more broad exhibit of working environments. So why are our youngsters, our future America, being denied of their entitlement to get a training that that would just advantage American culture? Why isn't PC utilization expanding in the American classroom at a speedier rate? Sh ould PC utilization increment at a speedier rate? The response to the last question is a perfectly clear yes: all signs demonstrate that laborers will should be surely understood with PCs, and boundless examination shows that PCs enhance the learning technique. Before PCs are really utilized as a part of the classroom, educators must get tied up with the idea that innovation is helpful. With the end goal instructors should purchase that contention, they should first make them comprehend of PCs. Which numerous teachers do need all things considered. In a few corners, the need of PC use in the classroom is faulted for the instructor, paying little heed to the way that instructors are frequently not upheld fiscally, instructively, and professionally in the effective reconciliation of PCs into their classrooms. However, faulting the educator won't help the circumstance. Instructors are willing; however, they are not bolstered in their endeavors. Spending plans must mirror a bigger offer of cash for instructor preparing than they right now. Knowledge Of Specialist Subject And Future Career Options Numerous skills are fundamental for a person who wants to seek after a profession in Event management. This course requests that the individual who needs to be an occasion administrator be cordial, with great relational abilities, social aptitudes, facilitator, and so forth (Shone and Parry, 2010). It is extremely fundamental for a man to have the capacity to communicate with individuals of different societies and groups. Communication and social skills are two vital aptitudes needed in seeking after this bearer. Understudies who are occupied with seeking after occasion administration ought to in any event gangs these qualities. It has to be essential for individuals to have these abilities in an office or working environment. It is a field where one is required to speak with others (Cottrell, 2010). One who is occupied with seeking after event management must be bowing on to enhance their communication and soft skill. Clients need to work with individuals who have solid conveying abilities and function admirably with group. Occasion administration business is mostly client situated and along these lines individuals included or willing to be a piece of this business ought to gangs this quality. Time management is a procedure or a demonstration that includes arranging and controlling the time spent on any exercises. Time administration is performed to enhance productivity, efficiency and viability of a procedure or work. It is framework that is outlined with a mix of apparatuses, procedures, techniques and strategies. All the things that are to be performed are sorted in the request of their need. It gives the individuals a knowledge in the work that is to be finished. It computerizes the framework and kills dull undertaking and paper work generally (Bird, 2010). One misuses his or her time on those activities or exercises that we like. One feels happy to do these things yet numerous persons can't do it in light of the fact that they don't modify their assignments as indicated by time. Co-curricular or extracurricular activities make conceivable in the extension of different areas of identity and psyche, for example, sensible advancement, social improvement, passionate improvement, tasteful advancement and good advancement. Inventiveness, and Energetic, Positive intuitions are a portion of the features of identity advancement and the results of extracurricular exercises (Barbieri, 2010). Conclusion PDP is a critical viewpoint in following all the formative changes in the way of accomplishing the objectives. Arranging the strides is critical, as it will control the individual to tail them one by one. In the event that a man gets right inspiration right from the earliest starting point than it will be less demanding for him or her to go ahead and accomplish the sought objective. Occasion organizer needs numerous qualities to succeed. Different abilities that are required by an occasion organizer are talked about in this report (Shone and Parry, 2010). The most vital abilities in this field are correspondence, social and facilitating. One ought to instill some of these qualities as it can help them to develop in any specific field they need to or are intrigued References Barbieri, M. (2010).Extracurricular activities. New York: St. Martin's Press. Beausaert, S., Segers, M. and Gijselaers, W. (2011). The Personal Development Plan Practice Questionnaire: the development and validation of an instrument to assess the employee's perception of personal development plan practice.International Journal of Training and Development, 15(4), pp.249-270. Bird, P. (2010).Improve your time management. Blacklick, OH: McGraw-Hill. Brewster, M. (2010). Special Event Production: The Process, Special Event Production: The Resources.Tourism Management, 31(4), pp.558-559. Cottrell, S. (2010).Skills for success. Basingstoke: Palgrave Macmillan. Epperson, A. (2010). Computer literacy revisited.ACM Inroads, 1(2), p.30. Forsyth, P. (2010).Successful time management. London: Kogan Page. Manser, M. (2010).Time management secrets. London: Collins. Shone, A. and Parry, B. (2010).Successful event management. Andover, Hampshire: Cengage Learning. Special issue of Event venues: development and management. (2010).Int J Event and Festival Mngt, 1(1). Tucker, F., Duncan, A. and Davis, L. (2011). Investing in yourself: personal development planning in practice.Planet, (24), pp.10-13.

The Lottery Essay Paper Example For Students

The Lottery Essay Paper Irony in The Lottery Shirley Jackson wrote the story The Lottery. A lottery is typically thought of as something good because it usually involves winning something such as money or prizes. In this lottery it is not what they win but it is what is lost. Point of views, situations, and the title are allironic to the story The Lottery. The point of view in The Lottery is ironic to the outcome. Jackson used third person dramatic point of view when writing The Lottery. The third person dramatic point of view allowed the author to keep the outcome of the story a surprise. The outcome is ironic because the readers are led to believe everything is fine because we do not really know what anyone is thinking. This point of view enables the ending to be ironic. We will write a custom essay on The Lottery Paper specifically for you for only $16.38 $13.9/page Order now The situations in The Lottery are ironic. The authors use of words keeps the reader thinking that there is nothing wrong and that everyone is fine. The story starts by describing the day as clear and sunny(309). The people of the town are happy and going on as if it is every other day. The situation where Mrs. Hutchinson is jokingly saying to Mrs. Delacroix Clean forgot what day it was(311) is ironic because something that is so awful cannot truly be forgotten. At the end of the story when Mrs. Hutchinson is chosen for the lottery, it is ironic that it does not upset her that she was chosen. She is upset because of the way she is chosen. She shows this by saying It isnt fair, it isnt right (316). The situation is extremely ironic to the story. The title of the story The Lottery is ironic. By reading the title of the story the reader may think that someone is going to win something. In actuality when the reader gets to the end of the story, he finds just the opposite to be true. Jackson shows every day as if it is any other summer day. Jackson foreshadows the events to come by writing: School was recently over for the summer . . . Bobby Martin had already stuffed his pockets full of stones, and the other boys soon followed his example, selecting the smoothest and roundest stones; . . . eventually made a pile of stones in one corner of the square and guarded it against the raids of other boys. (310) After reading this, the reader thinks the children are just collecting stones because that is what children do. They do not expect the outcome to turn out like it does. The title has the reader believing that something good is going to happen, and will not know any different until the end of the story. The point of view, situation, and title all contribute to the irony in the story. These are all equally important to the irony and without them the story would not have been as interesting as it was. If these were not included then the story would not be the same and would not keep the readers interest.

A Decisive moment Essay Example

A Decisive moment Essay Example A Decisive moment Essay A Decisive moment Essay A Decisive moment BY blatse97 a decisive moment As the car pulled up to the detached two-storey house, Quinn got an uneasy feeling in the pit of her stomach. The house was almost trembling due to the volume of the music playing inside and intoxicated bodies loitered at the front door and on the front lawn of the house. The sight only confirmed Quinns decision not to drink. This looks amazing! Quinns friend Molly squealed. Looking at Molly, Quinn immediately felt underdressed. Molly sported a low-cut t-shirt paired with leather short shorts and heels so high she towered over Quinn. Quinn opted for a safer option, wearing skinny Jeans, a sparkly top and her favourite flat pumps. As they walked into the house Quinn winced at how loud the music was. Soon the were approached by a man with shaggy blonde hair and piercing blue eyes. Hello ladies, Im Jake and this is my party. Jake said with a grin. Molly giggled girlishly at him while Quinn gave him a tight smile. Would you like me to introduce you to everyone? Jake asked. Molly nodded vigorously at him while Quinn Just tagged along. Jake led the two girls into a room with three other men in it. Quinn felt apprehensive Just looking at them. She knew that she shouldnt have been there since she was still only in her sophomore year in high school and this was a college party that Molly had dragged her to. When they sat down the men immediately pulled out small bags filled with white powder. Quinn felt her breath hitch, she knew it was drugs. The men offered her some but she politely declined. Molly happily accepted even though she had never taken drugs before. Quinn nudged Molly trying to knock some sense into her but Molly Just turned, looked Quinn up and down and said, prude. Quinns heart sank, this wasnt her best friend. She got up and stormed out of the room. Not knowing where she was going she ended up sitting by herself in the back garden. All ofa sudden the music stopped and there were shouts from inside. Quinn heard things like Call an ambulance! and No! Well get busted! . Curiosity got the best of her as she made her way inside. She pushed her way through a cluster of people to find Molly seemingly unconscious on the floor. Everyone Just stood and looked at her. Quinn still felt anger towards her for treating her the way she did but she was still her best riend. Quinn decided to help Molly. She called an ambulance and then Mollys parents. She made one of the men carry Molly outside the house into the fresh air and wait for the ambulance. No less than five minutes later the ambulance arrived and the paramedics lifted Molly into the back. When the paramedic asked who was travelling with her Quinn immediately said she was. Once at the hospital Mollys parents met them. They immediately questioned Quinn, but she told them that she would let the doctors explain as she wasnt sure. Two hours later a nurse came out nd told them that Molly was in a stable condition, that she was extremely lucky that Quinn called an ambulance as soon as she did and that she should be awake the next day. Later that night as Quinn lay awake in bed she thought back over the nights events. She had gotten in a lot of trouble with her parents who hadnt known where she was that night but she thought, it was so much better helping Molly and getting caught than if she had left Molly on the ground in the hands of the college students. Quinn vowed never to attend another college party again until she, herself was in college.

Cancer Essay Example | Topics and Well Written Essays - 250 words - 4

Cancer - Essay Example helping a patient understand the diagnosis, treatment, and its side-effects are also very useful because they help a patient in reaching a better decision. According to statistics published by the ACS, there will be an estimated 1.5 million new cancer cases diagnosed each year over the next decade. What factors contribute to the yearly incidence and mortality rates of various cancers in Americans? What changes in policy and practice are most likely to affect these figures over time? One out of every 8 women is at risk of developing breast cancer in the US. There are many factors like age, genetic history, smoking, obesity, and alcohol use, which increase the incidence and mortality rates of breast cancer in American women. Yearly screening tests starting after age 40 should be made compulsory for every woman on a national level to affect the rising figures over time. Prostate cancer is a very common cancer found in American men. One out of every 6 men is at risk of this cancer. Like in case of breast cancer, PSA (Prostate specific antigen) screenings and DRE (Digital rectal exams) can help to detect cancer at a stage when it is most treatable. These tests should be made compulsory also. Prevention based on physical activity and tobacco control is an important area of research which is funded by the ACS. This can help in the prevention and treatment of cancer because research is focused on how tobacco control and good physical activity interfere with the incidence of cancer. Tobacco control research particularly emphasizes on analysing the economics of tobacco control in low and middle income communities. The results then serve to introduce important policy

Leadership Definitions and The Successful Global Leader Essay

Leadership Definitions and The Successful Global Leader - Essay Example His own definition is hereby presented as â€Å"the ability of developing and communicating a vision to a group of people that will make that vision true† (Kenneth Valenzuela, 2007). Authors Lussier & Achua (2004) define leadership as â€Å"the influencing process of leaders and followers to achieve organizational objectives through changes†. (Lussier & Achua, 2004) My own personal definition of leadership is similar to Martires & Fule, Northouse and Lussier & Achua in presenting it as a process. All authors share the same conviction except Valenzuela who perceived leadership as an ability. Further, all authors conform to the following factors as relevant components of the leadership process: (1) influencing people; (2) towards the achievement of a goal. Valenzuela was just different in the use of words for goals, where he replaced it with ‘vision’. But still, there is the component of influence by exerting the ability to develop and communicate that vision to a group of people who would make that vision come true. I also believe that leadership entails some talent to convince a group of individuals towards the attainment of a specifically defined objective. It is a process for me because in order to achieve a goal, a series of actions should be undertaken gradually. One of the most successful and famous entrepreneurs of contemporary times is Bill Gates, owner of Microsoft. Gilgenbach (2006), in his article, â€Å"What made Bill Gates so successful and why Microsoft won’t be the same without him†, contended that â€Å"if I had to choose one word to describe Bill Gates, it wouldn’t be any of the usual suspects. It wouldn’t be rich, although he is the wealthiest man in the world. It wouldn’t be powerful, although he has shaped the future of computing. It wouldn’t be nerdy, but some may describe him as such. It definitely wouldn’t be evil, although many people think that is the case, and in my Mac loving days, that thought probably

Critical Examination of the applicability of module topics to two Essay

Critical Examination of the applicability of module topics to two globally trading companies - Essay Example n the company’s strategic plans it was evident that there are numerous retail chains in the market thus it had to come up with a strategy that would ensure it stands out of the rest and, in the long run, maintain a competitive advantage over its rivals (â€Å"Strategies for Reaching†, 2010). Despite offering its goods at low prices, the quality of goods sold to clients is not compromised, even though; profit maximization remains the principal objective of the organization. It is literally difficult for an organization to achieve all these three parameters at a go, but Wal-Mart has managed to conquer them all through strategic planning and implementation. The company conducted its analysis of the industry and came to the conclusion that the value of retail goods increased exponentially from the time of manufacturing for the time they get to their stores. Thus, they came up with a rapid transportation system that supplied its stores with goods from the suppliers in time, and only the required products were reimbursed in the stores (â€Å"Wal-Mart: Key†, 2014). The company developed an integrated inventory system that was coordinated with their primary suppliers for instance Proctor and Gamble whereby goods would be replenished in the stores immediately their volumes run below the recommended levels. In that sense there would be no time a good would be missing in Wal-Mart stores since the system would update the suppliers of the goods that were on demand and the rapid transport system of Wal-Mart would dispatch them to the respective stores within twenty-four hours. The fact that Wal-Mart deals directly with its suppliers ensure that the cost of essential goods is significantly discounted and those price cuts are transferred to customers in terms of low prices (Govindarajan, and Gupta, 2002). The company is notable with its low prices a feature that has seen it accrue billions of dollars yearly in terms of revenues and made other market players to shut business

Tablet Direct Compression Methods

Tablet Direct Compression Methods Tablets are solid dosage forms usually prepared with the aid of suitable pharmaceutical excipients. The excipients can include binders, glidants (flow aids) and lubricants to ensure efficient tableting; disintegrants to promote tablet break-up in the digestive tract; sweeteners or flavours to enhance taste; and pigments to make the tablets visually attractive. They may vary in size, shape, weight, hardness, thickness, disintegration, and dissolution characteristics and in other aspects, depending on their intended use and method of manufacture. Most tablets are used in the oral administration of drugs. Many of this are prepared with colorants and coatings of various types. Other tablets, such as those administered sublingually, buccally, or vaginally, are prepared to have features most applicable to their particular route of administration. Tablets are prepared primarily by compression, with a limited number prepared by molding. Compressed tablets are manufactured with tablet machine s capable of exerting great pressure in compacting. Their shape and dimensions are determined by use of various shaped punches and dies. (Allen, Ansel and Popovich (2004)). In the tablet-pressing process, it is important that all ingredients be fairly dry, powdered or granular, somewhat uniform in particle size, and freely flowing. Mixed particle sized powders can segregate during manufacturing operations, which can result in tablets with poor drug or active pharmaceutical ingredient (API) content uniformity. Content uniformity ensures that the same API dose is delivered with each tablet. In early formulation studies, as a promising compound is characterized for biologic activity, it is also evaluated with regard to chemical and physical properties that have a bearing on its ultimate and successful formulation into a stable and effective pharmaceutical product. This is the area of responsibility of pharmaceutical scientists and formulation pharmacists trained in pharmaceutics. When sufficient information is gleaned on the compounds physical and chemical properties, initial formulation of the dosage form are redeveloped for use in human clinical trials. During the course of the clinical trials, the proposed product is developed further, from initial formulation to final formulation and from pilot plant (or small-scale production) to scale-up, in preparation for large-scale manufacturing. The dose of the drug may be described as an amount that is enough but not too much; the idea is to achieve the drugs optimum therapeutic effect with safety but at the lowest possible dose. The effective dose of a drug may be different for different patients. In a normal distribution sample, a drugs dose will provide what might be called an average effect in most individuals. However, in a portion of the population the drug will produce little effect, and in another portion the drug will produce an effect greater than average. The amount of drug that will produce the desired effect in most adult patients is considered the drugs usual adult dose and the likely starting dose for a patient. From this initial dose the physician may, if necessary, increase or decrease subsequent doses to meet the particular requirements of the patient. Certain drugs may produce more than one effect, depending on the dose. Drug doses vary greatly between drug substances; some drugs have small doses, other drugs have relatively large doses. The dose of the drug is based on its biochemical and pharmacologic activity, its physical and chemical properties, the dosage form used, the route of administration, and various patient factors. The dose of a drug for a particular patient may be determined in part on the basis of the patients age, weight, body surface area, general physical health, liver and kidney function (for drug metabolism and elimination), and the severity of the illness being treated. General dosing information for drug substances is provided in the monographs in the British National Formulary (BNF) as well as in the package inserts that accompany manufacturers pharmaceutical products. Again, these sources provide the prescriber and pharmacists with guidelines of usual dosage and usual dosage range. Optimally, appropriate drug dosage should resulting blood serum drug concentrations that are ab ove the MEC and below the MTC for the period of time that drug effects are desired. For certain drugs, a larger than usual initial dose may be required to achieve the desired blood drug level. (Stoklosa and Ansel, 1996) Active ingredients can be separated into two categories: low-dose and high-dose drugs. It should be technically possible to manufacture almost all drugs of low doses (less than 50 mg) by the direct compression process with a proper choice of excipients and tablet equipment. The term direct compression is defined as the process by which tablets are compressed directly from powder mixture of API and suitable excipients. No pretreatment of the powder blend by wet or dry granulation procedure is required. The problems encountered in direct compression of low-dose drugs centre around uniform distribution of the drug (blending) and possible unblending during the compression stage. Steps of Direct Compression Source: http://inferenceforqbd.com/Solutions/Pharmaceutical%20R+D.aspx Some granular chemicals, like potassium chloride, possess free-flowing and cohesive properties that enable them to be compressed directly in a tablet machine without need of granulation. For chemicals lacking this quality, special pharmaceutical excipients may be used to impart the necessary qualities for production of tablets by direct compression. These excipients include fillers, such as spray-dried lactose, microcrystals of alpha-monohydrate lactose, sucrose-invert sugar-corn starch mixtures, microcrystalline cellulose, crystalline maltose, and dicalcium phosphate; disintegrating agents, such as direct compression starch, sodium carboxymethyl starch, cross-linked carboxymethylcellulose fibers, and cross-linked polyvinylpyrrolidone; lubricants, such as magnesium stearate and talc; and glidants, such as fumed silicon dioxide. The capping, splitting, or laminating of tablets is sometimes related to air entrapment during direct compression. When air is trapped, the resulting tablets expand when the pressure of tableting is released, resulting in splits or layers in the tablets. Forced or induced feeders can reduce air entrapment, making the fill powder more dense and amenable to compaction. Capping also may be caused by punches that are not immaculately clean and perfectly smooth or by a granulation with too much fines, or fine powder. Fine powder, which results when a dried granulation is sized, is generally 10 to 20% of the weight of the granulation. Some fine powder is desired to fill the die cavity properly. However, an excess can lead to tablet softness and capping. Tablets that have aged or been stored improperly also may exhibit splitting or other physical deformations. In low dose formulation, advances in pharmaceutical research have resulted in the development of high potency active ingredients, which can be difficult to formulate into capsules or tablets. The use of Starch 1500HYPERLINK http://www.colorcon.com/products/core-excipients/immediate-release/starch-1500 ®HYPERLINK http://www.colorcon.com/products/core-excipients/immediate-release/starch-1500 partially pregelatinized maize starch as an active-premix in low dose formulations can provide consistent drug uniformity, which allows manufacturing by a direct compression process. Since many low dose medications are manufactured by a wet granulation method to assure each tablet contains the proper amount of active, switching to a direct compression process can result in substantial savings in total process time and cost. Comparison of wet granulation and direct compression methods Source: http://www.atacamalabs.com/technology_specialty Spray-dried lactose is the earliest and is still one of the most widely-used direct compression fillers. It is one of the few such excipients available from more than a single supplier. In spite of many early problems, this material revolutionized tableting technology. Coarse and regular grade sieved crystalline fractions of a-lactose monohydrate have very good flow properties but lack compressibility. However spray drying produces an agglomerated product that is more fluid and compressible than regular lactose. In the production of spray-dried lactose, lactose is first placed in an aqueous solution which is treated to remove impurities. Partial crystallization is then allowed to occur before spray-drying the slurry. As a result the final product contains a mixture of large a-monohydrate crystals and spherical aggregates of smaller crystals held together by glass or amorphous material. The fluidity of spray-dried lactose results from the large particle size and intermixing of spheric al aggregates. The compressibility is due to the nature of the aggregates and the percentage of amorphous material present and the resulting plastic flow, which occurs under compaction pressure. The problem of compressibility of spray-dried lactose is still real and troublesome. The compressibility of spray-dried lactose is borderline, and furthermore, it has relatively poor dilution potential. Spray-dried lactose is an effective direct compression filler when it makes up the major portion of the tablet (more than 80%), but it is not effective in diluting high-dose drugs whose crystalline nature is, in and of itself, not compressible. Furthermore, spray-dried lactose does not lend itself to reworking because it loses compressibility upon initial compaction. (Lieberman, Lachman and Schwartz). For the binders, there are many excipients that can be used. these include hydroxypropylcellulose (HPC), methylcellulose (MC), povidone (PVP), hydroxypropylmethylcellulose (HPMC), and starches and their derivatives, such as pregelatinized and granulated starches. These polymers differ in their physico-chemical, mechanical and morphological characteristics. For direct compression, studies suggest highly compactable, plastic, fine particle size binders facilitate compression of drugs at relatively low filler-to-drug ratios, therefore representing ideal properties for tablet binders (Drug Dev Ind Pharm. 1999;25:1129-35) (Drug Dev Ind Pharm. 2001;27:181-924). Tablet manufacturing by direct compression has increased steadily over the years. It offers advantages over the other manufacturing processes for tablets, such as wet granulation and provides high efficiency (Zhang et al., 2003). As direct compression is more economic, reducing the cycle time and straight forward in terms of good manufacturing practice requirements. Amongst the techniques used to prepare tablets, direct compression is the most advanced technology. It involves only blending and compression. Thus offering advantage particularly in terms of speedy production. Because it requires fewer unit operations, less machinery, reduced number of personnel and considerably less processing time along with increased product stability. Drugs characterized by high-dose, high bulk volume, poor compactibility, and poor fluidity (flow properties) do not lend themselves to direct compression. A typical sample would be paracetamol, an analgesic. The API of which is not easily compressed, then it require usually restricted to about 30% of direct compression formula hence tablet will costly and difficult to swallow. While it is possible to densify some drugs or formulations by preprocessing, there is some question as to whether the final tableting process could then be called direct compression. Paracetamol is high dose at 500 mg, is highly elastic and requires tastemasking. The taste-masking system to use is important for the active ingredient. If a finished dosage form has great taste, the consumer may prefer your tablet to another tablet solely based upon taste. If the product has an unpleasant taste, the consumer may discount speed of delivery and prefer better tasting slower tablets. The taste-masked API needs to survive the tabletting operation. It is inherently a poor compressible drug and high dose formulation can show capping and lamination. This can be attributed to the elastic recovery and brittle nature of the drug. Good tablet hardness (17kP), friability (30%) and elimination of capping and lamination were achieved with 7% HPC EXF binder level in the IR granulation and employing a pre-compression force of 3kN in addition to a main compression force of 25kN.(www.aqualon.com). Magnesium stearate dihydrate (MgSt-D) is a more effective lubricant for a high dose product containing 90+% COMPAPà ¢Ã¢â‚¬Å¾Ã‚ ¢ L at a high tableting speed. CONCLUSION As shown, there is a big difference in the formulation of low dose and high dose tablet. For the low dose tablet, an example is digoxin which is a cardiotonic, it is manufactured under direct compression since the powder mixture of the active pharmaceutical ingredient (API) is compressed directly with its excipients. Low dose means having a small amount of API, since there is a small amount of it, direct compression is the best possible way because when compounding a tablet, it is unavoidable that there will have some residue or some particles that can be left in the containers or when triturating. For the high dose tablet, an example is paracetamol, direct compression cant be use since high dose API are not easily compressed.

PSY 301, Introductory Psychology, Fall 2005, Exam 3 B :: UTEXAS Texas Psychology

Form B Name: __________________________ Date: _____________ Introductory Psychology, Fall 2005 (Hawkins) Exam 3 Instructions: Write your name and the date on the top of this exam. Your must turn in this exam along with your answer sheet. On the answer sheet, print your EID, blacken the letters of your EID and provide the other information requested. (Don't forget to put which form of the exam you took!) Remember to blacken your choice for each item on the answer sheet (A, B, C, or D) and completely erase your questions. Good luck! 1. Isaac, a 25-year-old law student, is heterosexual; his brother Chaim, a 21-year-old college senior, is homosexual. The brothers obviously differ in their: A) gender identity. B) sexual role. C) sexual orientation. D) gender type. E) gender schema. 2. Mentally rehearsing one's resentments contributes to ________ perspiration levels and ________ blood pressure levels than mentally rehearsing forgiveness. A) lower; lower B) higher; higher C) lower; higher D) higher; lower 3. State University's psychology department and school of medicine are co-sponsoring a new professional program that applies behavioral and medical knowledge to health and disease. State University will clearly be offering a new degree in: A) medical psychology. B) human engineering. C) behavioral medicine. D) neuropsychology. 4. Rush hour traffic is to upset stomach as ________ is to ________. A) fight; flight B) Type B; Type A C) lymphocyte; macrophage D) hypertension; indigestion E) stressor; stress reaction 5. Research on taste aversion in rats led to the discovery that suppression of the immune system can be influenced by: A) biofeedback. B) Type A behaviors. C) elevated cholesterol levels. D) classical conditioning. E) aerobic exercise. 6. According to the two-factor theory, the two basic components of emotions are ________ and ________. A) facial expressions; cognitive labels B) emotion-arousing events; physical arousal C) physical arousal; overt behavior D) cognitive labels; physical arousal 7. The feel-good, do-good phenomenon refers to the fact that when people feel happy they: A) are more willing to help others. B) perceive the world as a safer place. C) make decisions more effectively. D) experience a more positive self-image. E) report greater satisfaction with their whole lives. 8. British civil service workers in executive positions live longer than those in clerical positions. This best illustrates the value of: A) spontaneous remission. B) perceived control. C) the general adaptation syndrome. D) alternative medicine. 9. The two-factor theory of emotion was proposed by: A) Walter Cannon. B) Robert Zajonc. C) William James. D) Stanley Schachter. E) Richard Lazarus. 10. In response to stress, the adrenal gland releases: A) epinephrine. B) lymphocytes. C) uric acid. D) teratogens. E) acetylcholine. 11. Who suggested that â€Å"we feel sorry because we cry . . . afraid because we tremble†?

Business, Government & Society – Notes on Relevant Journals

Berend (2000) From Plan to Market, From Regime Change to Sustained Growth in Central and Eastern Europe * After the state socalism collapsed in Central and Eastern Europe in the early 1990s, the Washington consensus of 1989 (a broadly accepted set of criteria for a reform program) was adopted as a blueprint for the process of transformation. * Central elements: * Macro-economic stabilization (for countries with significant inflation and indebtedness) * New institutions Legislation * Price and trade liberalisation * Radical privatization * Most of the â€Å"transformatologyâ€Å" literature is based on the assumption that the elimination of deformed non-market economies, a restoration of market, and private ownership, paired with a laissez-faire free market system would automatically solve all major economic/social problems of the transforming countries. The economic crisis within the Central and Eastern Europe area started much earlier – in the mid-late 1970s when growth slo wed significantly and the terms of trade for the state socialist countries began to deteriorate (1973 first oil shock 20% decline, for some even 26-32%) Schumpeter’s theory of â€Å"structural crisis†: advancements in technology lead to decline of the old leading sectors and export branches based on old technology, generating wide-ranging slow-down and decline and causing an economic crisis even in rich, advanced countries.However, although rising new technology led to the emergence of new industries, new leading export sectors and an impressive new boom in the US and other advanced countries, the Central and Eastern Europe countries experienced a â€Å"peripheral structural crisis† – they suffered all the negative consequences of a the â€Å"structural crisis† but due to not having sufficient resources for R&D, know-how and financial sources, they were not able to take advantage of the technological development.After 1989, when the countries of th e region lost the protection from Comecon’s isolation and regional self-sufficiency, they were forced to enter the world market and compete with the advanced countries (already adjusted to new technology) and also on their own opened domestic market. Consequence: the peripheral structural which had prolonged since 1973 continued and worsened during the 1990s. Also contributing to the economic crisis: serious macro-economic policy errors e. excessive devaluation of the currency; too abrupt opening to trade with the West; and the failure in government management of the state sector * Foreign trade deficits increased dramatically and nearly all countries in the region dropped into an indebtedness trap – debt service consumed about 40-75% of the countries’ hard income and quite a few started to lose control over inflation * Economic policy during the transition: Change was too fast countries of transformation should not have attempted to jump directly from a central ly planned to a laissez-fair economy and from an entirely state-owned to a 100% privatized economy * State regulations and government policy were needed self-regulating mechanisms were not yet developed, market imperfections and non-market friendly behaviour were present * Suggestion (Kolodko) : A regulated market, instead of a self-regulation market, a mixed economy with a restructured and efficient state-owned sector for at least a period of time, and a â€Å"fine mixture between market and stae† would have been a more natural transition from plan to market * However, this approach was not adopted and led to a collapse of many old companies (lost a bulk of their value and had to be sold for a fraction of their previous value) mass unemployment, sharp decline in living standards (especially for vulnerable layers of society) * Outcome: Industry recovered only in two countries – Poland and Hungary * Some experienced a new crisis – Bulgaria and Romania * Russia an d Ukraine as well as several other successor states of the Soviet nion had experienced constant decline throughout the entire decade * Poland, the Czech Republic, Hungary, Slovakia and Croatia – market economies are functioning, economic decline and rapid inflation are over, the annual economic growth is impressive * Performance differences: * Often explained by the lack of determination to pursue radical reforms author agrees * However, besides pursuing systemic change, the countries in transformation also have to adjust to the â€Å"structural risis†, by restructuring the economy according to the requirements of modern technology to reach a sustained and higher than average growth technological and structural transformation of the economy are central elements of the transition * Window of opportunity slowly opened after 1989 when direct foreign investment became the key factor in technological modernization and restructuring in the area but only played an important r ole in the three frontrunners of transformation – Estonia, Latvia and Slovenia * In addition, not all investments contributed to restructuring, some of them served only to enlarge the investors’ markets. However, key investments were made in the most backward infrastructural sphere, especially telecommunication that serves as the basis for any kind of technological progress to date. * Investments had positive effects on Eastern Europe where they generated growth of domestic business which led to economic growth (especially in Poland).Big transnational businesses were also obliged to reinvest some of its profits and to use domestic products and sub-contractors initiated small local business activities. * Russia, the successor states of the Soviet Union, and most of the Balkan countries exhibited minimal progress in restructuring. FDI was minimal in this area and mostly went into the extracting branches of oil, gas and raw materials; transnationals are present but do not develop processing industries and export branches. Consequently, this area was unable to adjust to the late 20th century technological revolution and declined into a continuous peripheral structural crisis. In those Central European countries, where impressive FDI assisted technological-structural adjustment, transformation is paving the way to sustained growth and catching up with the West. These countries became memers of NATO and are candidates for EU membership. Murrell (1993): What is Shock Therapy? What Did it Do in Poland and Russia? Poland: * Shock therapy failed in Poland * The reform program implemented in January 1990 comprised a number of related measures * Fiscal policy was tightened considerably budget surplus in Q1 1990 * Real value of the money supply was halved * Tight limits were placed on credit * Trade liberalisation removed all restrictions * Anti-inflation wage tax was set at strict levels Government made a commitment to privatisation on a massive scale * Soli darity and the Catholic Church were two of the strongest social institutions in Eastern Europe helping to maintain the shock therapy model * Once it was realised that the shock therapy was not going to produce as many benefits as expected, it came under severe attack gradually, many of the elements of the initial program were withdrawn or weakened monetary policy was loosened * Further movement away from the shock program occurred throughout 1991 in the face of massive and open opposition to the government’s policy * Fiscal and monetary policy were considerably loosened budget deficit began to rise to the levels of 1989 * Reversal of trade policy tariff rates increased and selective protection was endorsed * Although policy was modified during the two years following the big bang, the commitment of the large part of society to change was never in doubt. * Change was inexorable (kohklematu), given the collapse of the communist regime that had blocked reforms that had been dema nded for so long. * Nevertheless, Polish economy started to show first signs of success after policy was rescued from the shock therapists. Russia: Stages of the reform chronology in Russia are similar to those in Poland, but without a successful outcome * Less preparatory reform during the communist period in Russia * Core group of reformers were radical and ambitious, and more removed from its own society than were the Polish reformers * Radical reforms had hardly advanced beyond their explicitly destructive first phases before they were rejected by society * By 1991 economic reform in the Soviet Union had hardly progressed beyond the stage of decentralisation within the old system and it was still very equivocal * Price controls and state orders contributed to about 75% of economic activity * Small private sector did not thrive on its own, it was in a symbiotic relationship with the state sector * Law on contract had not been implemented by the end of USSR * Russia’s econo mic and political leaders still did not fully comprehend the difficult conceptual and institutional issues related to establishing macroeconomic control and they had little experience Russia could not match Poland’s years of contact with the West, the experience and knowledge of its policymakers gained in the worldwide academic community, and the years of learning in interactions with the world financial community. * In 1990 and 1991, the Russian government had been gradually gained power (and this was accelerated by the failed coup). * In late October 1991, Russian President Boris Yeltsin announced his intention to launch a radical attack on the country’s economic problems. He had been given freedom in administrative and policy choices for one year and he decided to assign the policymaking duties to a group of theorists, who had a strong preference for rapid change and who had vague idea about how to bring this change about * Murrell argues that shock therapy was the guiding force of policy as Russia began real economic reform in January 1992. * The reform (1992) was certainly more radical than the Polish big-bang, including: * Freeing of most prices * Removal of the old supply system * The complete liberalisation of imports * A thoroughgoing change in the tax system * Rapid closing of the budget deficit * Stringent tightening of monetary policy * A privatisation program with very ambitious goals Preparation for early convertibility of the ruble together with and immediate relaxation of rules on foreign exchange trading * Renegotiation of the existing trading relationships with the other ex-republics * There was greater determination in Russia to undermine the existing institutions of government; the incoming government viewed its mission as an attack on the old Soviet system. * In several areas, the degree of shock, the amount of policy implementation, and even actual policy were unclear * Uncertainty about the nature of policy was present even among those at the apex of government * As early as February 1992, criticisms about the economic policy started to arise * As 1992 proceeded and the economic crisis became more threatening, some old mechanisms of control began to return * Broad powers to control prices and to use central directives on production * To avoid large scale bankruptcy, the government began to make credit available to nterprises in significant amounts * Due to a threat that better enterprises were being brought down with the bad ones, directors of enterprises formed an alliance along with independent labour unions to put pressure on the government, which was forced into compromise with these interest groups * Direct consequence of the policies introduced in January 1992 was that the political forces representing the dominant economic interests of the old Soviet system were much stronger than they had been before those policies were introduced * The short burst of shock therapy in Russia had considerable s uccess if destruction is counted as a goal. But the destruction of the old was hardly matched by the creation of market-oriented institutions of economic control. Blanchard (1994): Transition in Poland * First two years: * Large decreases in GDP * Even larger decreases in industrial production * Output stabilised in mid-1992 * Employment declined initially more slowly than GDP, but has kept declining despite the turn in output * Hardening of budget constraints * Subsidies to state firms were decreased Tax arrears, interenterprise arrears and bank loans were limited and decreasing * Sources of output decline during the first 2 years: * Stabilisation * Price liberalisation * Collapse of trade between Central and Eastern Europe countries * State firms are controlled by workers with uncertain stakes and horizons, and have limited access to finance; state has remained de jure owner of state firms but is not able to exercise its control rights control has reverted to the workers * Led to slow adjustment of employment to decreasing output, appropriation of profits to workers in the form of wages and low restructuring and investment * Slow privatisationFidrmuc (2003): Economic reform, democracy and growth during post-communist transition Key point: There are merits to simultaneous democratisation and liberalisation – democracy reinforces economic liberalisation, which in turn leads to better growth performance. Democracy is clearly not a necessary condition for high growth (as the examples of Chile and China illustrate), but as the experience of the post-communist transition countries shows, democracy results in policies and institutions that facilitate economic reforms and create an environment that is favourable for growth. However, democratisation alone is not the key to growth; it is through its positive impact on economic liberalisation that it improves growth performance. By 1993, barely 3 years into transition, three frontrunners – the Czech Repub lic, Hungary and Slovenia – attained a level of political freedom and civil liberties comparable to the UK, France or Germany. * Most post-communist countries succeeded in sustaining at least a moderate level of democracy, despite very turbulent economic and political developments, military conflicts or coup attempts. * The high speed of democratisation reflected not only the desire of these countries’ citizens to live in democracy, but also the encouragement or outright pressure from Western governments, international organisations and especially the EU which made democracy and explicit precondition for accession negotiations. Democracy has a positive effect on progress in implementing market-oriented reforms. * Economic liberalisation, in turn, has a positive effect on growth * Therefore, democracy indirectly improves growth performance. * Economic performance during transition and initial conditions affected the progress in democratisation – countries that we re more developed at the outset of transition and those that grew faster during transition in turn implemented greater degree of democracy. Growth performance during transition: * All post-communist countries experienced dramatic contraction of economic activity at the outset of the reforms, but the subsequent transition paths diverged considerably. Some countries reached the bottom of transformational recession after 2-4 years and then recovered * Some, most notably Poland grew at impressive rates subsequently * Others (Bulgaria, the Czech Republic and Romania) experienced a second dip later on * In contrast, most Soviet Union countries experienced deep and protracted depression with little subsequent recovery –> for Moldova and Ukraine, transition resulted in a decade of continuous decline * By 2000 only 4 countries have exceeded the 1989 level of output * Berg et al. (1999) found that the initial output fall is attributable primarily to initial conditions and macroeconomic instability, whereas the effect of liberalisation on growth was overwhelmingly positive. When considering separately the effects of liberalisation on state and private sectors, they conclude that liberalisation contributed to the contraction in the state sector, but this was more than compensated by the expansion in the private sector. The further a country lies from Brussels, the more reluctant it was to implement radical economic reforms – therefore, being father away from Western Europe is associated with lower growth, although the relationship is often not significant. * Engagement in military conflicts, not surprisingly, lowers growth. * On the other hand, once the war is over, the affected countries tend to grow more rapidly as they make up for the loss of output. * Government expenditure does not have a significant impact on growth Democracy and growth: * The post-communist countries implemented, at least initially, economic and political reforms simultaneously. In so me cases, political reforms even preceded the economic ones.Hellmann (1998): Winners Take All: The Politics of Partial Reform in Postcommunist Transition Key point: A conventional approach suggests that in the short-term, economic reforms are believed to generate high transitional costs before long-term gains are realised. Therefore, politicians in democratic systems are reluctant to undertake radical reforms whose benefits will not be realised before the next elections. For an economic reform to be successful, governments need to focus on restraining the net winners of the reform as they are the one’s responsible for setting the highest obstacles for the advancement of the reforms. The partial reform model: Explains why some countries have maintained partial reform over time, even though the short-term costs are higher and the overall gains are lower than those associated with more comprehensive reforms * Explains why post-communist countries in which the net winners of the reform process appear to have significant political power over economic policy-making nevertheless have remained mired in a partially reformed economy * Provides a possible explanation for the strong link between democracy and economic reform among the postcommunist transitions that stresses the advantages of including the very groups that suffer from the transitional costs of reform Conclusion: The costs of transition have been substantial in all transition economies – to varying degrees, each country has faced some combination of high inflation, high unemployment, declining real incomes, decreasing state services, and increasing uncertainty. * However, the losers of the reforms have not constituted the main political obstacle to the progress of reform. * In fact, it is these countries in which governments have been most vulnerable to the losers’ threat of an electoral backlash against reform that have adopted and sustained the most comprehensive reform programs. * In contrast, governments insulated from electoral pressures have made, at best, only partial progress in reforming their economies. * Moreover, economic reforms, once adopted, have rarely been reversed, even when the reform governments that initiated them have been ousted.In addition, there have been cases in which electoral backlashes were followed by intensification of reform in some areas * Partial reforms were predicted to generate rent-seeking opportunities arising from price differentials between the liberalised sectors of the economy and those still coordinated by nonmarket mechanisms * Rapid foreign trade liberalisation without complete price liberalisation managers were able to sell their highly subsidised natural resource inputs (oil/gas) to foreign buyers at world market prices * Privatisation coupled with the creation of an effective corporate government structure reduces asset stripping by enterprise insiders. Actors who enjoyed extraordinary gains from the distortions of a partially reformed economy have fought to preserve those gains by maintaining the imbalances of partial reforms over time – the winners from an earlier stage of reform have incentives to block further advances in reform that would correct the very distortions on which their initial gains were based. In effect, they seek to prolong the period of partial reforms to preserve their initial flow of rents, though at a considerable social cost. * Therefore, the challenge posed by the winners is based on a set of assumptions about the costs and benefits of reform that differs from the assumptions of the conventional J-curve pattern upon which most existing models of the political economy of reform are based. J-curve assumes that economic reforms generate concentrated costs in the short term and dispersed benefits over the long term, whereas Hellman has demonstrated that in the postcommunist transitions, economic reforms have tended to produce highly concentrated gains to particula r groups in the short term, while dispersing the transitional costs of reform throughout the economy. * The partial reform model stresses the need to restrain the winners by increasing competition with other groups or by restricting their ability to veto reform measures unilaterally. * In this view, expanding political participation to include the losers in the policy-making process could place limits on the concentrated political power of the winners and prevent them from sustaining a partial reform equilibrium. * One of the fundamental tenets of the politics of economic reform has always been to create a constituency of winners with a stake in sustaining and advancing the reform process. This has been a common strategy both for making the reforms irreversible and for building up the necessary political support for further reforms. * Yet a comparison of the post-communist transitions suggests that the winners can do far more damage to the progress of economic reform than the losers . * Therefore, the success of economic reform depends both on creating winners and constraining them. * Paradoxically, the most effective means of constraining the winners in the post-communist transitions has been to guarantee the political inclusion of the very constituency that most existing political economy models seek to exclude: the short-term losers of reform. Progress in the implementation of market reforms could reduce the private gains to the initial winners over time, while increasing efficiency gains for the economy as a whole from winners’ perspective, J-curve is reversed * Countries that adopt more comprehensive reforms at the start have a narrower gap between the income curves of winners and losers. More on PARTIAL REFORM and other information: Roland (2002): The Political Economy of Transition Normative political economy – focuses on the decision-making problem of reformers Reformers face 2 types of political constraints: * Ex ante political constraint s – feasibility constraints * Ex post political constraints – related to backlash and policy reversal Relaxing political constraints – 4 options: 1.Building reform packages that give compensating transfers to losers from reforms * Easiest way – ‘Buy their acceptance’ * In the real world and transition economies it is hard to do 2. Making reforms partial to reduce opposition * Partial reform, usually in the framework of a gradualist strategy, has some clear disadvantages. It yields lower efficiency gains than a complete reform. * However, partial reform also has several potential advantages over full reform – it is less costly in terms of compensation payments to losers. * If partial reform is less costly to reverse than full reform, political acceptability can be easier than for full reform because it provides an option of early reversal. If a partial reform is implemented, a continuation toward full reform seems unattractive to a majo rity then it is always possible to come back to the status quo (Russia – turned back too early?! ) * Gradualism thus lowers the cost of experimenting with reform and thus makes a move away from the status quo more easily acceptable to a majority. * Partial reform can also build constituencies for further reform through the use of â€Å"divide and rule† tactics (showing that rejection of a current reform plan can lead to the adoption of a plan that would hurt them even more, they may prefer to accept the first one) and the optimal choice of sequencing of reforms (e. g privatisation of those enterprises with â€Å"good† outcome first) 3.Creating institutions that make a credible commitment to compensating transfers * Can offer benefits * However entails economic costs * E. g extending voting franchise- ensuring poorer segments of population vote 4. Waiting for deterioration of the status quo to make reform more attractive * Sometimes only option is to wait * Howev er, decision-making paralysis may occur if political decision making is characterised by different parties trying to push the burden onto the other parties Understanding the difference in transition paths between central European countries like Poland and Russia and the former Soviet Union on the other hand: * Law and property rights: One argument – the extent of state capture and rent seeking was much more important in former Soviet Union countries than in central Europe and this difference goes a long way in explaining differences in output performance (EBRD, 2000; Hellman and Shankerman, 2000) * Geopolitical factors * Quite important, although they have been underestimated since the beginning of the transition – in geopolitical terms, the transition represents the shift of central Europe and the Baltic states toward western Europe several nations are given the opportunity to have more interaction with western Europe or even join the European Union * Entry to the EU implies adopting the political and economic system of the west. The potential reward of belonging to the club of western nations makes it more worthwhile to undergo the cost of transition.Moreover, the geopolitical factor increases the perceived cost of reversing transition policies, since such reversals would raise the risk of being left out of the western club, an outcome than many in central and eastern Europe would view as disastrious. Geopolitical impact of transition for Russia: * Transition represents the loss of the Soviet empire and also of territories (Ukraine or the Baltic States) – wound to Russian nationalist pride * Trauma of the loss of superpower status could be compensated for by economic gains from transition to a certain extent. Unfortunately, such gains have not materialised so far for the majority of Russians. Entry of Russia into the EU is neither expected nor especially desired. * Thus, resistance to transition proved much harder in the former Soviet Un ion than in central and eastern Europe. Sequencing: The sequence of reforms in transition economies are roughly in line with political economy theory, which suggests that reforms expected to be more popular should be adopted first and the less popular reforms tend to be delayed. For example, in both Central and Eastern Europe, democratic reforms preceded economic reforms because support for democracy was much stronger than support for economic reforms. * Apart from political reforms, certain other institutional changes can be decided at an early stage of reforms. For example, establishment of institutions for competition policy should be among the first reforms to be implemented in transition economies.This reduces the danger of existing monopolies going into private hands, which may have enough power to prevent the government from introducing competition policy or any other measures that are opposed to their interests. * Another important early step in the sequence of transition re forms is encouraging the development of a small private sector prior to more comprehensive reforms (in Hungary, small private sector was already producing 10% of industrial output by 1990) * As the Big Bang Price Liberalization in Vietnam showed, the prior existence of a viable private sector buffered the shocks of economic liberalization and macroeconomic stabilization and facilitated a supply response.In Vietnam, after the implementation of a radical price liberalisation, output initially fell, but an impressive growth in agriculture still led to positive growth in GDP. * In transition economies, the best firms tend to be privatized first as the privatization of more profitable firms creates political support and goodwill to for further privatization and other reforms. * Another set of sequencing issues arises with regard to mass privatization. Mass privatization in countries like Russia created a sudden and strong concentration of economic power among insider managers. This is es pecially dangerous because a sudden shift of economic power to insider managers may make it easier for them to threaten or use bribery against politicians and regulators to take advantage of subsidies or favorable legislation.The insider uses the threat of reducing economic activity and destroying jobs which leads to inequality of wealth which in turn might increase political instability. Trade-off between the speed of reforms and the size of budgetary transfers: * The theory of political economy suggests that faster reforms involve higher compensation costs like unemployment benefits and pensions due to a higher level of restructuring. In addition, there are claims that a faster rate of restructuring in transition economies is associated with a worsening fiscal state. * However, the role of the social safety net in helping overcome political constraints is quite clear.In the case of central European countries like Poland and the Czech Republic, the social safety net has helped to m itigate the negative ffects of transition on income inequality, especially for the most vulnerable proportions of the population. Role of political institutions: * When it comes to the role of political institutions and the progress of reforms, there are contradicting views. * Empirical analysis by Hellman and EBRD has found that stronger executive branch of government tends to be associated with less progress in reform, whereas there tends to be a positive correlation between the broadness of coalition and the progress of reforms. * However, empirical findings by Rubini and Sachs, among others, have shown that weak executive branch and broad coalition goverments are obstacles to reforms. Faster progress in reforms due to broader coalition may be explained by the fact that if reforms are accepted by broader coalitions, perhaps there is less chance they can be reversed. * However, broad coalitions tend to paralyze decision making due to the holdup power of some groups and to differin g views within the coalition. * Another possible interpretation is that the population is eager to get reforms implemented, whereas the politicians and those holding office are opposed to it. In that case, closer checks on the executive branch and frequent elections are a way to force the politicians to move, whereas politicians with more discretion would choose to block reforms. According to Roland, the most likely explanation for the positive correlation between progress of reforms and broadness of coalitions and weakness of the executive branch is that it is likely that the countries where it was the easiest to push for democratic reforms, are also the countries where resistance to economic reforms was relatively smaller. Whereas in countries with less initial support for reforms, it is quite likely that both democratic reform and economic reform are less advanced. Therefore, the differences in initial conditions of reform are what determine the intensity of political constraints , and thus the initial choice of political institutions, and hence the initial choice of policies. Popov (2000) – Shock Therapy vs Gradualism:Primary issue regarding transition performance – strength of institutions Secondary – speed of reforms * By now most economists would probably agree that because liberalisation was carried out without strong market institutions it led to the extraordinary output collapse in CIS states * The worse initial conditions for transformation, the greater the probability of the deep transformational recession, and hence the more likely delays in liberalisation * Gradualists objected to the elimination of old regulations and institutions before the new ones are created, warning that the institutional vacuum may have a devastating impact on output Transformational recession Supply-side phenomenon – reallocation of resources (restructuring) due to market imperfections is associated with the temporary loss of output Argument: Di fferences in economic performance in post-communist countries during transition appear to be associated predominantly not with chosen reform paths, but with the magnitude of initial distortions in industrial structure and external trade patterns, and with the initial level of economic development. The higher the distortions (militarisation, over-industrialisation, â€Å"under-openness† of the economy and the share of perverted trade flows), the worse is the performance as measured by the GDP change. And the higher was GDP per capita before transition, the greater were distortions embodied in fixed capital stock, the more difficult it was to overcome these distortions to achieve growth. The impact of speed of liberalisation appears to be limited, if any. Reasons (distortions): * High defence expenditure and the need for conversion * Overcoming the effects of the Cold War Defence expenditure was abnormally high – declines in defence output were not offset by increases in non-defence output * Reallocation of resources from industry to services * External trade distortions – the degree of openness of socialist economies (the share of external trade in GDP) * In most countries, including the majority of the former Soviet republics, trade was relatively underdeveloped * A bit better in Azerbaijan, Hungary and Vietnam * Shift to world market prices in interrepublican trade led to reduced trade – prices used were completely different (resource commodities underpriced, finished goods overpriced) Policy factors: institutions, rule of law and democracy The decline of the institutional capabilities contributed a great deal to Russia’s and CIS poor economic performance * Regardless of the criticism against â€Å"big governments† and too high taxes in former socialist countries, the downsizing in the government that occurred in most CIS states during transition went too far – drastic reduction of government spending (50% and more in real terms in the course of just several years) cannot lead to anything else but institutional collapse * In addition, in most CIS states the reduction occurred in the way that instead of shutting some programs down completely and concentrating limited resources on others, governments kept all programs half-alive, half-financed and barely working Three major patterns of change in the share of government expenditure: 1) Under strong authoritarian regime – China Cuts in government expenditure occurred at the expense of defence, subsidies and budgetary financed investment, while expenditure for â€Å"ordinary government† remained largely unchanged 2) Under strong democratic regimes – Poland * Budgetary expenditure, including â€Å"ordinary government† expenditure declined only in the pre-transition period, but increased during transition itself – social safety nets? 3) Under weak democratic regimes – Russia * Reduction of the general le vel of government expenditure led not only to the decline in the financing of defence, investment and subsidies, but to the downsizing of â€Å"ordinary government† which undermined and in many nstances even led to the collapse of the institutional capabilities of the state * Russian pattern of institutional decay proved to be extremely detrimental for investment, and for general economic performance To sum up, Gorbachev reforms of 1985-91 failed not because they were gradual, but due to the weakening of the state institutional capacity leading to the inability of the government to control the flow of events. Similarly, Yeltsin reforms in Russia, as well as economic reforms in most other FSU states, were so costly not because of the shock therapy, but due to the collapse of the institutions needed to enforce law and order and carry out manageable transition. Therefore, there is enough evidence that differing performance during transition, after factoring in initial conditions and external environment, depends mostly on the strength of institutions and not so much on the progress in liberalisation per se. Democratisation without strong rule of law usually leads to the collapse of output.After allowing for differing initial conditions, it turns out that the fall of output in transition economies was associated mostly with poor business environment, resulting from institutional collapse. Liberalisation alone, when it is not complemented with strong institutions, cannot ensure good performance. Ericson (1991): The Classical Soviet-Type Economy: Nature of the System and Implications for Reform Characteristics of the Soviet-type economic system: * A hierarchical structure of authority * Rigid, highly centralised planning of production and distribution * A commitment to maximal resource utilisation * Formal rationing * Exhaustive price control * The lack of any liquidity or flexible response capability * The lack of legal alternatives to assigned economic rela tionships * Absolute and arbitrary control by superiors Incentives that are geared to meeting the plans and desires of evaluating superiors Any economic reform must struggle against these characteristics and their natural consequences. One important consequence is that while the administrative superstructure has been subject to rather frequent â€Å"reform†, the physical structure of production and interaction has changed only very slowly. Strengths and weaknesses of the traditional Soviet-style system: Strenghts: * Very good at mobilising scarce resources and concentrating on a few clear, well-defined objectives (that can be expressed in measurable, quantitative and communicable terms and that yield large observable outcomes) * Building of major heavy industrial capacities * Collectivisation of agriculture * Post-war reconstruction of industry Development of an unprecedented military-industrial complex * Maintenance of the world’s last true empire Weaknesses: * Centra l authorities lack the information and physical capability to monitor all important costs * Decisions made in ignorance of opportunity costs lead to a vast range of negative externalities: * Damage to the capability of users to produce (especially with needed quality) * Unusable output forced on others in the system * Destruction of the resource base due to improper exploitation * Collateral damage to agriculture etc * Incentives used lead agents to: * Avoid any change or risks * Shun innovation * Ignore information important to others * Work to rules regardless of the impact on othersThus, while the traditional Soviet economic system has been effective in achieving a few centrally definable and achievable objectives, it is also inherently wasteful and inefficient in the pursuit of those objectives. Implications for reform: 2 monumental obstacles: * Vast resource commitment – however, lack of resources currently available in Soviet-style economies is probably not the most ser ious obstacle, for it might be dealt with through aid from abroad * Primary obstacle: characteristics of the Soviet-style system are interconnected and mutually supporting, altering one or a few is merely disruptive of the stable functioning of the system and its effectiveness.Thus, a meaningful reform must eliminate all characteristics more or less simultaneously. THEREFORE Partial reforms will not suffice The analysis implies that radical reformers are correct to seek the total replacement of the traditional system. Radical marketization and privatisation undercut of destroy each of the nine defining characteristics of the traditional system. Fischer & Gelb (1991): The Process of Socialist Economic Transformation Enterprise reform: * Enterprise reform, which requires the imposition of bottom-line discipline, definition and change of ownership, and reform of management, is the heart of the transformation process. Two phases (opinions differ which should come first) * Restructuring * PrivatisationSlow privatisers argue that firms should be sold off gradually after restructuring. They emphasise the danger of severe economic dislocation if too much change is attempted quickly. Fast privatisers argue that the benefits of a rapid and irreversible shift to private production outweigh the costs of reduced state revenue. They believe that comprehensive and rapid ownership reform is necessary to increase efficiency. * Broad distribution of shares, or vouchers with which shares can be bought, across the population The Role of the State: * Redefining the previously all-encompassing role of the state is one of the greatest challenges for reform.Institutions and professions taken for granted in market economies have to be re-created and reformed to support markets: * Secure legal environment to protect property rights and regulate commercial relations * Accounting and audit systems are needed to organise and monitor information * Investments in human capital to complement the system reforms in areas such as: accounting, credit and market analysis and bank inspection. * Management skills need to be upgraded and modernised (especially in finance and marketing) * In some areas, such as financial markets, reform may require a greater state role than before. * Reforming governments need urgently to: * Introduce broad-based taxes and to develop the capacity for tax administration, rather than continue to depend on profit remittances from state enterprises. * Institute a social safety net, especially for those affected by the new phenomenon of open unemployment * Liberalisation of labour and capital markets is also important.Labour market reform measures to make it easier to hire/fire labour, relaxation of wage regulation, introduction of unemployment insurance, establishment of institutions (inc. employment agencies) to encourage labour mobility. Capital market reform development of financial markets and private sector institutions (inc. banks). However, freeing input markets should not be an early priority. * Enterprise reform is the heart of the transformation process. 2 phases: restructuring and privatisation. Slow privatizers vs fast privatizers. Reforming governments will have to introduce broad-based taxes and develop the capacity for tax administration, rather than continue to depend on profit remittances from state enterprises. The reforming goverments will also have to develop a social safety net. Sequencing of reforms: Reforms need to include macroeconomic stabilisation, price reform, trade reform, small-scale privatisation, new regulations for private investment, the creation of emergency unemployment insurance and the start of work on new tax, legal and regulatory institutions. * For countries with severe internal/external imbalances, priority no. 1 has to be macroeconomic stabilisation (e. g sharp cuts in firm-specific subsidies, tight credit limits, trade liberalisation at a heavily depreciated exchange rate, fixing th e nominal exchange rate (in countries with high inflation)). Stabilisation can be assured only by following consistent macroeconomic policies over periods of years. Shleifer (1997) : Government in Transition Key point: Russian government is less effective in serving the market economy – as well as its people – than the Polish government. But why? Arguments to the effect hat Russia is historically and culturally incapable of good government (such as low trust and anti-market culture) lack support. More convincing argument: Russia has not had as radical a change in its government, in terms of both structure and personnel, as Poland or the Czech Republic. Comparison of Poland and Russia: * Both were industrial economies at the time reforms began * Both economies faced substantial disruption from the collapse of COMECON and other trade following the demise of the Soviet Union * Both economies were in poor condition when the reforms began, suffering from inflation, goods sh ortages and declining production. * Both experienced a near-collapse of the state prior to transition. In Poland – total demise of the communist party and its military regime * In Russia – the Gorbachev government faced a similar crisis, which led to the dissolution of the Soviet Union and the creation of independent Russia * After communism collapsed, both countries moved to fragmented, rapidly changing party systems and â€Å"semi-presidential† regimes, in which a conflict between president and legislature was present from the start. * Both were led in their transition by charismatic, populist presidents committed first and foremost to the destruction of communism. However, despite these similarities as of 1990, the two countries appeared in 1996 to have very different results of their reforms. I argue that an essential part of transition to capitalism is the transition of government.Despite similar economic reforms, government in Russia continues to retain su bstantial political control over economic life, and moreover uses this control to pursue predatory policies toward business. The political transition in Russia has not gone nearly as far as it has in Poland, and this slowness of political transition disturbs economic growth. Government in transition: * Even when the communist power collapsed, some remnants of a large government often remained, ready to continue political control. The principal goal of the political transition was to replace these remnants with institutions supportive of capitalism. This entailed two steps: * Depoliticisation – government control replaced with control by market orces * Price liberalisation – eliminates price controls that were used by planners to either stimulate or discourage production of particular goods, or to create shortages that allow planners to maintain their power over resource allocation. * Stabilisation – imposes a harder budget constraint on the government, and thus prevents politicians from using subsidies to encourage firms (and regions) to pursue political ends * Privatisation – removes direct control over firms from the government * New functions taken on by government: provision of laws and regulations that support a market economy. * The state had to be weakened overall, but strengthened in a few areas. * However, even with the three radical measures taken, the government retains much regulatory power which it can use to either support market economy or hurt it. Shock therapy does not guarantee depoliticization (as politicians can still exercise control in other ways) or a transformation of government institution which includes: * creation of laws and legal institutions that protect private property, enforce contracts between private parties, but also limit the ability of officials to prey on private property * creation of regulatory institutions that deal with competition, securities markets, banking, trade and so on * Despite sho ck therapy, politicians in Russia, particularly at local level, retain enormous control over economic life, which they use to pursue political ends and to enrich themselver. * This makes them rather different from politicians in Poland * Russia is also behind in creating the institutions of a new market economy. ALSO Transition of government into one that supports markets from the one that preys on them has gone further in Poland than in Russia – regulators of small business exert more power over business in Moscow than in Warsaw and use this power to enrich themselves. In addition, the Russian government has not yet successfully taken on the basic market supporting functions, including police protection. * Russia is much more of a laggard in the transition of its government than it is in shock therapy. Human capital of politicians: Key point: Lack of turnover of human capital in Russian politics may well be a serious reason for the poor performance of its government * Many R ussian politicians are communist leftovers experiencing significant hardships understanding what is expected from them. Few of these leftover politicians have transformed themselves into capitalist politicians. In Poland, 75% of local leaders elected in Poland in 1990 had no record of government service and 45% of newly elected mayors were under the age of 40 – in Poland the people have largely changed and been replaced by a younger crowd, with some experience in both democratic politics and market economy, whereas in Russia, the local leaders are largely the very same people who were there before the reform began. In this respect Solidarity changed Poland – Russia would be a very different place politically if it had a similar revolution from below. Incentives of local politicians to support private business * Campaign support * If politicians need to collect campaign contributions to run their elections, they might favour new business as a source of potential campaig n donations * Local tax base * If politicians need to provide public goods to attract votes, and must collect taxes to pay for these goods, they would support the growth of new business to broaden the tax base * Personal share holdings Local politicians may support private business if they effectively become shareholders in it and profit personally when it does well Poland vs Russia: Elections: * Poland had held elections more consistently than Russia and officials at very local level – where small business would actually have a political say – are all elected. * Because of elections, Polish politicians appear to be much more supportive towards private business than Russian politicians. Tax base * In Poland, the principal source of funds for local governments are local taxes and fees, especially property taxes incentive to the local politicians to broaden the tax base to increase revenue through new business formation and employment * In Russia, over 2/3 of local gover nment evenues comes from their share in taxes collected by central government through negotiation governors have little incentive to broaden their tax bases and instead focus on negotiations with Moscow Personal financial incentives: * In Russia, many of the local officials see a rather short and insecure future for themselves in politics. If the private economy grows, they are likely to lose power because they will not be acceptable to the new business elites or will be replaced by younger politicians during new elections. Absence of political security may prevent the politicians from accessing the future profits of the firms, therefore many local government officials simply destroy local business through excessive corruption and regulation – they take what they can while they can. Initial conditions Poland had been pursuing economic reforms at least since the 1980s (much longer than Russia) Polish private sector was well established by 1990 when reforms began (by 1986 1/3 o f the Polish labour sector was employed in the private sector) * Poland had a much more substantial legal history and tradition to rely on – many of its commercial laws were adopted as soon as reforms began because they were based on Poland’s own pre World War II laws * National tradition made the implementation of at least some institutional reforms much easier. * Russia had been building capitalism for a much shorter time – Gorbachev’s reforms allowed some quasi-private firms in Russia, but few compared to Poland. Russia’s history of market institutions is sparse too – pre-revolutionary laws were an instrument of autocratic control, not protection against it; regulatory agencies have been created from scratch, employees often view their jobs as mandates for personal enrichment rather than efficient regulation. * However, author believes that importance of initial conditions can be overrated – many countries in Eastern Europe, such a s Slovakia and the Czech Republic, are growing rapidly even though they had as little private business before the reforms as Russia did. Some countries of FSU are also growing despite having a limited history of legal traditions and public institutions. With proper political incentives, initial conditions are often overcome. Suggestions: Acceleration of elections at the sub-regional or local level * Fiscal federalism – more generally the tax system – needs to be reformed as well. * Institutional reforms need to continue – legal reforms are most important among those, but creating functional bureaucracies, one at a time, is also crucial. * Russia made the mistake of beginning with economic reforms and delaying the political and institutional reforms (however, author believes that business pressures are likely to play a critical role in the political transition of Russia and of course they did not exist before economic reforms) Estrin (1991) – Privatisation in Central and Eastern Europe Key points: Appropriate mode of privatisation depends on the development of capital market institutions and the availability of foreign or domestic private capital * Transition must be rapid to be effective, so reforming governments have been faced with the tasks of selling assets whose value is far in excess of domestic resources. Privatisation: * Objective: to improve enterprise performance and national economic efficiency and to help public finances (Vickers and Yarrow, 1988) * Definition (Milanovic) – transfer from the public to the private sector of ownership in such a way that private individuals become the identifiable ultimate owners Seven central areas in which property rights and the mechanism of resource allocation must be altered in order to build a functioning market sytem: 1) Ownership and control 2) Means of allocation 3) Aims of the System 4) The Allocation of Labour 5) The Allocation of Capital 6) International Trade 7) Role of StateReformers in Central and Eastern Europe strongly believe that their recent history proves that when the state is owner, it will always interfere in the operation of firms in such a way as to hinder the beneficial impact of competition Hinds (1990) – absence of effective private property rights is at the heart of the failure of actual socialist systems, and must be immediately eradicated by widespread privatisation. Privatisation: * Important way of raising government revenues, but it will not affect the state’s long-term financial position if enterprise efficiency is not changed; may still be sensible from a revenue point of view is short-term conditions call for additional expenditures with limited availability of taxation or other income sources * Important element in building markets Significant role in the formation of labour market institutions and the process of wage bargaining * Privatisation prevents a reversion to the old systems How to Privatise and to W hom? One of the main problems – mass privatisation in countries where domestic savings are small and capital market institutions weak Arguments FOR selling state’s assets: * Considerable revenues * If monetary overhang threatens to destabilise the macroeconomy, privatisation could absorb some of the excess liquidity. * Owners established through a process of financial exchange will have the strongest demand effective corporate governance Arguments AGAINST selling state’s assets: * Unequal distribution of income and wealth Traditional modes of privatisation are very slow and most analysts agree that for transition to be effective the changes must be fast * Valuation problem – nothing upon which to base valuation (no relevant record of profitability), a significant proportion of companies are loss-making, thus it is likely that sales price will be negative * No domestic actors with the resources to buy Most of these problems are resolved by a free distribut ion of the state’s holdings: * No need to value the assets initially * No need to find domestic purchasers * Privatisation could be extremely rapid * Provided an operational scheme can be devised, privatisation can be constructed in a highly egalitarian way, preventing the early concentration of wealth in the hands of the nomenklatura or black marketeers who otherwise would be the people most likely to gain from privatisation Disadvantages of free distribution: * Losing the revenues from sales Possibility of weak governance if capital ownership is dispersed – central issue is whether population at large are the appropriate owners to dramatically improve company performance Potential buyers or recipients: * Public at large – external privatisation or privatisation from above * Transfer of ownership to shareholders * Foreigners – access to hard currency, superior management skills and technical know-how * Insiders – internal privatisation or privatis ation from below * Involves the sale of shares to workers and managers in the firm * Attractive: * Could be administered quickly and relatively easily, yet could still provide some revenue to the government * Participative organisations may be more productive * Negative: Yugoslav experience: employee control may conflict with effective corporate governance * No establishment of credible procedure for wage determination and for reducing inflationary pressures * Clearly not suitable for companies that require a significant degree of restructuring (probably the vast majority) * Unjust – workers and managers in profitable firms stand to gain considerably from the privatisation process, while those employed in loss-making firms would obtain nothing * Potential for bribery and corruption as workers and managers can use insider information to undervalue the assets or to transfer them illicitly into their own hands Roland (1994) – On the Speed and Sequencing of Privatisation a nd Restructuring Big bang approach – fast privatisation through mass privatisation plans with no definite sequencing, leaving the task of restructuring to the owners of the privatised firm Key point:Political constraints necessitate a gradual approach to restructuring and gradualism has implications for the speed and sequencing of privatisation. In particular, we ward on the danger of privatising too fast firms where restructuring should best be delayed for political reasons. Conclusion: A condition for successful gradual restructuring is a screening mechanism to separate good firms from bad ones. It is crucial to separate thee firms and their channels of finance, so that good firms would become independent of government through government and face hard budget constraints while bad firms would remain under government control with strengthened control. Arguments for the big bang view of mass privatisation: * Speed Price liberalisation in a state-owned enterprise economy will n ot give the correct incentives, thus it is necessary to achieve very quickly a critical mass of private ownership in order to get firms to respond to market signals. * If not done: * Danger of inertia – due to firms not taking new profit opportunities * Danger of continued soft budget constraints – loss-making firms expect to be bailed out * Importance of getting the State out of the economy * Committing the State to avoid continuous intervention in enterprise activity * Absence of clarified property rights * Danger of large scale decapitalisation by managers who have de facto control without assigned property rights Experience: * Poland Plan: combining fast privatisation through giveaways together with strong control rights given to mutual funds to avoid dispersed ownership of firms * Political constraints have played a major role in blocking Polish mass privatisation – in 1994, four years after the beginning of â€Å"big bang† in Poland, it is still not implemented * Russia * Speed of privatisation – obvious success (about 1/3 of workers were in privatised firms by end of 1993) * Problems with restructuring * Former managers are still in control (workers did not sell their shares to outsiders to assure outsider control; managers preventing them) Political constraints: There are 2 main sources of political constraints to privatisation: * Ex-ante political constraints – feasibility constraints * Proposals may be blocked – e. in Poland where coalition in power preferred distribution to workers whereas the Polish mass privatisation programme involved distribution to the population at large * In Russia, policy-makers took into account ex-ante political constraints by designing a giveaway plan favouring managers and workers (Boycko, Shleifer and Vishny (1993) justify that this was the only way to get privatisation adopted) * Sometimes coalitions push forms of privatisation that are economically not sensible but poli tically difficult to avoid * Ex-post political constraints – concern the danger of backlash and reversal of given politics * This may be the case when a programme advertised as very egalitarian induces a high concentration of wealth in the hands of a small number of people * However, political constraints related to redistribution of wealth and income may not be the most serious * More serious political constraints are related to serious income risks related to restructuring – general knowledge that there will be a massive shift from heavy industry to services, from big to small enterprises, but in most cases, nobody knows in advance which enterprises will survive and which will die Experience: * Big bang restructuring is not ex ante feasible * Gradual restructuring may be more acceptable ex ante because: * Gradualism allows for â€Å"divide and rule† tactics * Gradual resolution of uncertainty may enhance ex ante feasibility * Aggregate uncertainty related to u ncertainty: restructuring may be positive but it can go wrong, too advantage to moving gradually by starting to restructure only a subset of enterprises or sectors * Gradual eform packages tend to start earlier – Hungary and China * Optimal sequencing: * Better to start with reforms having the highest expected outcome for a majority and to delay the reforms that are expected to hurt the most Gradual restructuring and privatisation policies: * No political constraints – restructuring may be left to the new private owners * Political constraints – very fast and non-differentiated approach to privatisation danger of partial renationalisations (subsidising a great number of firms) and general delays in restructuring (due to soft budget constraints/no incentives) * Gradual privatisation policy allows for: Establishment of a screening mechanism separating good from bad firms * Best firms tend to get privatised first as they are more likely to find a buyer less large r edundancies and better performance * Privatisation may be slow, but it is possible to speed it up: * Managers incentives to restructure before privatisation especially when given shares * In Poland, although mass privatisation has been blocked, successful privatisation has continued at a fast speed especially in smaller and medium enterprises through a â€Å"liquidation programme† – management buyout * Emergence of a sound private financial system If good firms get privatised first, bad firms remain under state control private savings are allocated to good firms with high yieldings sound financial system may emerge * A credible pol