IMF's Stuctural Adjustment Programme Essay Example | Topics and Well Written Essays - 1500 words

IMF's Stuctural Adjustment Programme - Essay Example Some of the conditions that third world debtors needed to fulfill were devaluing currency, import liberalization, privatisation, "cuts in government expenditure", continued debt servicing, economic development focused on exporting goods and moratorium on hiring and pay increases for both public and private sectors (Kreye and Schubert,1988, p.264). "The structural adjustment scheme was primarily implemented to address balance of payments issues". These issues were largely generated by internal conditions such as high inflation rates, budget deficits or inefficient allocation of resources. The IMF assumed that in order to recover from the debts, third world countries must tighten its expenditures and divert them to more productive domestic investments. However, tightening the belt meant reduced government subsidies on food and services, higher interest rates, more lay-offs, higher interest rates and taxes. The scheme inadvertently affected the poorest segments of the third world country. Ferraro and Rosser (1994) noted that instead of easing the burden debt, the policies of the IMF appeared to drive the country into further debts. The IMF's policies with exclusive emphasis on internal economic improvements failed to consider external factors such as oil price movements or global recession that might affect the fiscal positions of the third world nations. ... emphasis on internal economic improvements failed to consider external factors such as oil price movements or global recession that might affect the fiscal positions of the third world nations. Their policies had pushed the heavily indebted countries into more desperate conditions and the future of economic growth in these countries was hampered. The structural adjustment programmes were perceived as benefiting more the creditors than debtor countries. In addition, the foundation of the SAP framework was rooted in neoliberalisation and an emphasis on export capacities of debtor countries. The SAP also would require the poor country to be integrated into the international market economy. Most of the poor nations hardly had the right political and economic structures that would address the demands of the IMF SAP. Instead of easing the burden of debt, SAP appeared to have driven the poor countries into dire positions. The intent of the SAP was to remove any government controls over key economic sectors to induce a free market financial condition. Socio-Economic Impact of IMF SAP The inappropriateness of IMF structural adjustment programmes could be seen in various aspects of socio-economic structures of a debtor country. The stringent conditions imposed by the SAP on the debtor countries as a requisite to avail of the IMF financing has affected the poor nation's socio-economic fundamentals. Currency Devaluation The currency devaluation requisite of the IMF SAP meant that the population would experience increases in basic cost of goods formerly accessible. In addition, essential items like agricultural machineries, medicines and other provisions included in the development project would be expensive (Riddell, 1992, p.57). The purchasing power of the local currency

Germany economy Essay Example | Topics and Well Written Essays - 3250 words

Germany economy - Essay Example In 1948, the Soviets withdrew from the four-power governing bodies and initiated the Berlin blockade, which lasted 11 months. On May 23, 1949, the Federal Republic of Germany (FRG) was established on the territory of the Western Occupied zones and declared full sovereignty on May 5, 1955. On October 7, 1949, the German Democratic Republic (GDR) was established in the Soviet zone with East Berlin as its capital. From that time on, the two largest states were known as "West Germany" and "East Germany," Berlin was divided into East Berlin and West Berlin, with West Berlin completely surrounded by East German territory. As a western capitalist country, West Germany enjoyed prolonged economic growth, while East Germany soon became the richest, most advanced country in the Soviet bloc. Even so, many of East Germany's citizens looked to the West for political freedoms and economic prosperity. In 1989 the Berlin wall was removed, and German reunification finally took place on October 3, 1990 , when the GDR was incorporated into the FRG (History 2007). Its per capita income of more than $28,700 makes Germany a broadly middle class society (Background 2007). In the western part of the country, Germany's standard of living is among the highest in the world, with powerful incentives to save offered by the state. Earning power for both workers and employers assures income to meet cost of living. There is no exaggerated difference between compensation for blue-collar workers and white-collar employees. In 1990, the absorption of the eastern German population and economy into western Germany had only a marginal effect on western living standards. On the other hand, East Germany, with its lower earning power suddenly had to pay West German prices, and the wholesale shutdown of former state factories and enterprises caused vast unemployment in industrial cities (Germany: Standards of Living 2007). Third quarter growth for Germany in 2007 was at its strongest for the year, boosted by higher spending on company machinery and construction. The prediction, however, for the fourth quarter and into 2008 is for slower growth due to high oil prices and a strong euro. But the latest preliminary gross domestic product (GDP) figures suggest Germany is on track for annual growth of about 2.5 percent, which would be one of the best performances in the past 15 years. The euro's rise against the dollar increases expenses for exporters while high energy costs are impinging on company profits (Germany Grows 2007). More attention should be paid to domestic product than to capital gains. Poverty With welfare reforms scheduled to be implemented in 2005, social organizations were warned of a dramatic increase in the number of poor people in Germany (Corbett 2004). Corbett stated that according to an association of German charities, the number of poor people in Germany were expected to increase from 2.8 million to 4.5 million-almost double. The average income in 2004 was roughly 2,200 ($2,700) a month but by counting the number of people living on the lowest level of social welfare assistance, the charitable organizations note that after the reform HartzIV, these people would have a monthly

BG Group plc Accounting Coursework Example | Topics and Well Written Essays - 2000 words

BG Group plc Accounting - Coursework Example Of the three business segments of the company, the E&P segment is the largest in terms of non-current assets subject to impairment issues. Oil and gas exploration is a capital intensive activity and all costs incurred are capitalized as intangible assets until oil or gas is discovered. Once the reserves are proven, these costs are transferred to property, plant and equipment in the company balance sheet. Costs incurred on unsuccessful oil and gas fields are written off in the in the income statement (BG Report 2011, pp 89). This method of accounting based on â€Å"successful efforts† is not a term defined in the IFRS 6 but used by the oil and gas industry as a carry over from previous GAAP practices (KPMG, 2008). BG plc does not differentiate between development fields and production fields. This too is inline with accepted industry practice (KPMG, 2008). Non current assets are reviewed at least once a year for impairment. As on 31 December 2011, BG Group held a balance of $ 4,383 million in expenditure related to unproved oil and gas reserves within the category of intangible assets. In the previous accounting year, this figure was higher at $5,342 million (BG Report 2011, pp 89). For assessment of impairment, BG plc combines oil and gas production fields into cash generating units based on geographical location, use of common facilities and marketing arrangements (BG Report 2011, pp90). This disclosure is not usually made in Oil company reports (KPMG, 2008) and is therefore an improvement on industry practice. BG plc uses the net present value of future cash flows for impairment assessment using certain short term and long term assumptions depending on the nature of the asset. The Exploration & Production business segment is particularly sensitive to commodity prices. Impairment testing of oil and gas properties is based on assessment of proven and probable reserve estimates using the SEC definition (BG

IMF's Stuctural Adjustment Programme Essay Example | Topics and Well Written Essays - 1500 words

IMF's Stuctural Adjustment Programme - Essay Example Some of the conditions that third world debtors needed to fulfill were devaluing currency, import liberalization, privatisation, "cuts in government expenditure", continued debt servicing, economic development focused on exporting goods and moratorium on hiring and pay increases for both public and private sectors (Kreye and Schubert,1988, p.264). "The structural adjustment scheme was primarily implemented to address balance of payments issues". These issues were largely generated by internal conditions such as high inflation rates, budget deficits or inefficient allocation of resources. The IMF assumed that in order to recover from the debts, third world countries must tighten its expenditures and divert them to more productive domestic investments. However, tightening the belt meant reduced government subsidies on food and services, higher interest rates, more lay-offs, higher interest rates and taxes. The scheme inadvertently affected the poorest segments of the third world country. Ferraro and Rosser (1994) noted that instead of easing the burden debt, the policies of the IMF appeared to drive the country into further debts. The IMF's policies with exclusive emphasis on internal economic improvements failed to consider external factors such as oil price movements or global recession that might affect the fiscal positions of the third world nations. ... emphasis on internal economic improvements failed to consider external factors such as oil price movements or global recession that might affect the fiscal positions of the third world nations. Their policies had pushed the heavily indebted countries into more desperate conditions and the future of economic growth in these countries was hampered. The structural adjustment programmes were perceived as benefiting more the creditors than debtor countries. In addition, the foundation of the SAP framework was rooted in neoliberalisation and an emphasis on export capacities of debtor countries. The SAP also would require the poor country to be integrated into the international market economy. Most of the poor nations hardly had the right political and economic structures that would address the demands of the IMF SAP. Instead of easing the burden of debt, SAP appeared to have driven the poor countries into dire positions. The intent of the SAP was to remove any government controls over key economic sectors to induce a free market financial condition. Socio-Economic Impact of IMF SAP The inappropriateness of IMF structural adjustment programmes could be seen in various aspects of socio-economic structures of a debtor country. The stringent conditions imposed by the SAP on the debtor countries as a requisite to avail of the IMF financing has affected the poor nation's socio-economic fundamentals. Currency Devaluation The currency devaluation requisite of the IMF SAP meant that the population would experience increases in basic cost of goods formerly accessible. In addition, essential items like agricultural machineries, medicines and other provisions included in the development project would be expensive (Riddell, 1992, p.57). The purchasing power of the local currency

BG Group plc Accounting Coursework Example | Topics and Well Written Essays - 2000 words

BG Group plc Accounting - Coursework Example Of the three business segments of the company, the E&P segment is the largest in terms of non-current assets subject to impairment issues. Oil and gas exploration is a capital intensive activity and all costs incurred are capitalized as intangible assets until oil or gas is discovered. Once the reserves are proven, these costs are transferred to property, plant and equipment in the company balance sheet. Costs incurred on unsuccessful oil and gas fields are written off in the in the income statement (BG Report 2011, pp 89). This method of accounting based on â€Å"successful efforts† is not a term defined in the IFRS 6 but used by the oil and gas industry as a carry over from previous GAAP practices (KPMG, 2008). BG plc does not differentiate between development fields and production fields. This too is inline with accepted industry practice (KPMG, 2008). Non current assets are reviewed at least once a year for impairment. As on 31 December 2011, BG Group held a balance of $ 4,383 million in expenditure related to unproved oil and gas reserves within the category of intangible assets. In the previous accounting year, this figure was higher at $5,342 million (BG Report 2011, pp 89). For assessment of impairment, BG plc combines oil and gas production fields into cash generating units based on geographical location, use of common facilities and marketing arrangements (BG Report 2011, pp90). This disclosure is not usually made in Oil company reports (KPMG, 2008) and is therefore an improvement on industry practice. BG plc uses the net present value of future cash flows for impairment assessment using certain short term and long term assumptions depending on the nature of the asset. The Exploration & Production business segment is particularly sensitive to commodity prices. Impairment testing of oil and gas properties is based on assessment of proven and probable reserve estimates using the SEC definition (BG

Leading Teams Essay Example for Free

Leading Teams Essay The following report presents an analysis of Shell Oil, and the ways in which it incorporates team leadership concepts in balancing stakeholder needs. Stakeholders are defined in The Times 100 case study Balancing Stakeholder Needs as â€Å"anyone who has an interest in what a business does or an influence on the business†. The case study continues on to identify Shell’s stakeholders as shareholders, employees, suppliers, customers, local communities, and interest groups. It is vitally important for large corporations such as Shell to balance the needs of these parties, in order to ensure profitable, safe and continuous operations. In order to do so, Shell must consider what the needs of each of these groups are, and how to use leadership to control the effects of conflicting needs. a) Making reference to appropriate theory what aspects of leadership and team dynamics may Shell have considered when considering their approach to balancing Stakeholder needs? The leadership tactics employed by Shell in balancing stakeholder needs will be varied, but will no doubt include an assessment of its vision and principles, the corporate leadership style, and how to construct its teams to maximise performance. The statement â€Å"Begin with the end in mind† (Covey 2004 cited Benson and Rice 2009a, p.3), gives a fair indication as to the purpose and necessity of a corporate vision. Where is the business going, and how is it going to get there? An essential element to leadership, a vision defines the goal that everyone in the company should be working towards. Kotter (1990, p.105) suggests that a key part of vision is â€Å"how well it serves the interests of important constituencies†. In other words, Shell should display balanced stakeholders needs in the company vision. According to Nanus (1992 cited Southwest Educational Development Laboratory, 1993), a vision should also display the following  characteristics, which Shell would likely have taken into account for each group of stakeholders: * Attracts commitment and energises people * Creates meaning in workers lives * Establishes a standard of excellence * Bridges the present to the future * Transcends the status quo. Shell publishes its vision, along with its core values and other operating principles in the Shell General Business Principles, which is widely communicated, and available for download from the company’s website. Shell has clearly recognised for quite some time the value and necessity for a vision in balancing needs, as the first set of principles was originally published in 1976 (Royal Dutch Shell plc 2005). It is important to separate leadership from management. Kotter (1990, p.104) states that â€Å"Management is about coping with complexity†, and that â€Å"Leadership, by contrast, is about coping with change.† And what is a vision, if not an anticipated change to the company? The management of change is a key role of leadership. The recent corporate restructuring and appointment of a new CEO in July 2009 (Wighton 2010), shows that Shell’s leaders are required to consistently react to changes such as market conditions, and adjust its focus to ensure al l stakeholder needs are still being met. The study of leadership in general has led to many differing leadership theories, which can essentially be divided into two categories; Behaviour Models, and Situational Leadership. Behaviour Models tend to address the personal traits of the individual leader, and Situational Leadership addresses a customisation of style to each new situation. While it is possible to apply some Behaviour Model theories to an organisation, it is more likely that Shell apply Situational Leadership methods, altering the balance of task vs. relationship dependent on which stakeholder group is being considered. Shell will also have spent considerable time finding the most effective teams for their business profile. Owing to the highly technical nature of Shell’s operations, there is a good possibility that it uses expert teams to ensure that shareholder needs are incorporated at every level of the organisation. For example, and expert in say, oil drilling, may not have the expertise to determine what effects a proposed course of action would have on the local  community. It is worth noting however, that it may be time for Shell to re-evaluate the effectiveness of its teams. Wighton (2010) reports that Shell has been â€Å"plagued by delays and budget overruns on big projects†, indicating that its teams are not performing. To ensure that stakeholder needs are being met, Shell will have incorporated ways in which to monitor and control performance within the organisation. Shell begins by reporting. It reports on several sectors of the business, to include annual financial reports, which are particularly relevant to shareholders, and sustainability reporting, which will be of interest to local communities and interest groups (Shell International B.V. 2010a). It became apparent, through the annual reporting to their shareholders in May 2009 that Shell had misinterpreted its shareholders needs. This resulted in a tense annual meeting where the shareholders voted 60% against the proposed incentive scheme for executives, which would have seen top executives receive large bonuses, even if they failed to meet performance targets (Lindsay and Pagnamenta 2010) b) How may Shell’s approach to balancing Stakeholder need’s impact upon employee motivation? There are two major motivational theories which are widely used in the field of management; Herzberg’s Two Factor Theory (1959 cited Boddy 2008, p. 500-502), and Maslow’s Hierarchy of Needs (1970 cited Boddy 2008, p. 494-497). The Two Factor theory suggests that there are two elements to motivation, Motivating Factors, and Hygiene Factors. Motivating Factors contribute to an employee’s satisfaction, and Hygiene Factors contribute to their dissatisfaction. The theory identifies these factors as: Motivating Factors| Hygiene Factors| Achievement| Company Policies| Recognition| Supervision| The work itself| Relationship with Supervisor and Peers| Responsibility| Work conditions| Advancement| Salary| Growth| Status| | Security| Herzberg went on to conclude that satisfaction and dissatisfaction are not opposites. The opposite of satisfaction is no satisfaction, with the opposite of dissatisfaction being no dissatisfaction. In other words, the absence of Motivating factors does not create dissatisfaction, and the existence of the Hygiene Factors does not create satisfaction. On the other hand, in the Hierarchy of Needs, Maslow speculates that everyone has a prescribed set of needs that must be met in a certain order, as follows: Maslow maintains that employees begin by looking to fill Physiological needs, for example a properly heated/cooled workplace. Only when Physiological needs are met, or mostly met, will an employee seek to fulfil their Security needs, for example a permanent contract. And so on through the other needs. Both of these theories have identified common areas of motivation relating to security (job security, salary), recognition (status, advancement, self-esteem, rewards), and job development (growth, achievement, self actualisation, responsibility). Regardless of which theory, if any, that Shell has chosen to adopt, these are the basic employee needs that they will need to have taken into account. It is a widely held belief that employees are a company’s greatest asset, which means that their role as stakeholders is an important one. If Shell is getting the stakeholder balance right, they will have addressed their employee’s needs, which should result in positive levels of employee motivation. As we saw in Question a) however, it is not always that easy to get the balance right. If Shell has favoured its shareholder needs, this could potentially lead to employee pay cuts and a reduction in safety costs, in order to maximise profits. If interest groups and local communities are favoured, this could potentially lead to the cancellation of new and innovative projects that would have allowed employees to develop new skills and achieve new discoveries. All of these outcomes would have a noticeably negative effect on employee motivation. If we are to believe Shell, it recognises this need for balance, and goes to great efforts to ensure that employee’s needs for recognition and job development are met (Shell International B.V. 2010b). It professes on its website: * â€Å"Joining Shell means getting more out of your working life than you thought possible.† (Shell International B.V. 2010b) * â€Å" [We make] every effort to provide the kind of rewards and benefits that will complement your own particular lifestyle and needs† (Shell International B.V. 2010c) Certainly, the testimonials offered by Shell employees, from every facet of the organization, seem to support these statements (Shell International B.V. 2010d). It is worth noting however, that nowhere in the literature published in the Jobs Career section of the Shell website, does it address the subjects of job stability, employee safety, or personal security. It was reported by Wighton (2010) that within weeks of his taking over at the helm of Shell in July 2009, Peter Voser had cut 5000 jobs. Combine this with the inherent safety risks of the petrochemical industry, and the security risks associated with operations in locations such as Nigeria, and some doubt is cast on Shell’s ability to meet all of their employee’s needs. c) What conflict situations may Shell have needed to consider and manage in order to successfully achieve its balance towards Stakeholder needs? Shell has five main stakeholder groups, shareholders, employees, suppliers, customers, local communities, and interest groups (The Times 100 ca.2009, p. 133-136). The nature and the needs of each one of these groups differs to such a degree that conflict is nearly inevitable. â€Å"Conflict frequently has its roots in difference† (Benson and Rice 2009b, p.2), this statement supports the idea that conflict management can also be regarded as the management of differences. Shell’s balancing of stakeholder needs could essentially be redefined as management of the differences in stakeholder needs; or conflict management. With a multinational company such as Shell, listing potential conflicts could be a daunting task. To begin with, the shareholder’s need to earn the greatest dividends possible is obviously at odds with the em ployee’s desire for greater remuneration and benefits packages. The shareholder’s and employee’s dedication to innovative new technologies and projects may oppose the goals of interest groups who strive  to protect the environment and human rights, and local communities who are stretched to accommodate a new industry. The customer’s desire for a reprieve from the ever increasing cost of fuels is in direct opposition to a supplier’s objective of selling their product at the most profitable price. The list is virtually inexhaustible. Shell has incorporated measures throughout its organization to mitigate potential conflicts, which centre on ensuring balance, communication and involvement. The first and foremost of these measures is Shell’s decision making criteria (The Times 100 ca.2009, p. 136), which is specifically designed to achieve a good balance of stakeholder needs and provide a transparency by assessing: * the economic impact of the activity is likely to yield a good return for shareholders * the social impact will be suitable for employees and communities * the long-term effect of its activity will harm the environment As mentioned in Question a) Shell report openly and honestly on its activities and their effects, through financial and sustainability reporting. According to Shell, they have â€Å"voluntarily reported on our environmental and social performance since 1997 because this performance matters to our stakeholders and to our business success† (Shell International B.V. 2010a). This provides a consistent avenue for communication with stakeholders. The greatest volume of resources dedicated to mitigating conflict can be found in Shell’s social programmes. A brief review of its website reveals that it has no fewer than seven separate social programmes, which focus on a myriad of topics, from sustainable development, to road safety, to HIV/AIDS (Shell International B.V. 2010e). There is an underlying conflict however that is not so easy to identify, and which is not evidently addressed in the mitigation measures. It is the diversity of the stakeholders that presents Shell with perhaps the biggest challenge of all. In order to truly balance stakeholder needs, Shell must consider the cultures in which it operates, and strive to understand â€Å"the richness and strength of the many different facets of diversity, including age, gender, colour, race, ethnicity, religion, differing abilities (physical and cognitive), sexuality, socio-cultural and economic background† (Benson and Rice 2009c, p.2). This will not only affect the way in which it must represent itself in each region, but it will also have a great impact on the internal development of its teams in order to maximize performance.  Again, the management of differences between cultures becomes the management of conflict. d) Conclude by taking the key elements of your observations in steps a-c regarding Shell in order to make a recommendation for other organisations to consider implementing the approach of balancing Stakeholder needs as a means to business success? Shell Oil began as an antiques dealer in London, who diversified into importing shells from the Far East in 1833 (Shell International B.V. 2010f). This is a far cry from the multinational petrochemical company of today that is a recognized symbol around the globe. The business success that has propelled Shell from local antiques store to global giant will not have happened by accident. It will be well calculated and methodically achieved. This outstanding business success will certainly provide many other organizations with insight regarding balancing stakeholder needs which will be beneficial. First and foremost is the need for vision and leadership. Business success on the scale of Shell Oil cannot be achieved without establishing a vision of what that success will look like, and how to get there. A properly composed and communicated vision will essentially be the battle cry that enlists all of your stakeholders to joining in and making the increased business success a reality. To accompany this, it is necessary to embrace the ideas of leadership over management, after all, â€Å"No one yet has figured out how to manage people effectively into battle, they must be led† (Kotter 1990, p.104). Once a vision has been communicated, it will quickly lose momentum if the stakeholders are not informed of its progress. Tools to measure and disseminate the organisation’s and individual’s performance to the vision should be developed. No matter how inspiring the vision and enthusiastic the leadership, effective teams who are able to perform will be essential. Dependent on the type of organization, and its particular stakeholders, the team dynamic required to meet expectations will be different. For example, the approach to technical innovation required by Shell will not be needed in a non-profit organization that gives support to individuals through social programming. Research into effective team structures for the desired outcome is highly recommended. While no one group of stakeholders should overshadow the rest, it is perhaps the employees who will have the most complex needs to balance against the other stakeholders. Every organisation should ensure that the balance of stakeholder needs promotes positive employee motivation  in order to achieve its envisioned business success. A study of motivational theories should be undertaken to understand the various factors, before assessing them within the organisation. As concluded in Question b), Shell has heavily promoted its ability to meet the job development and recognition needs of its employees, though it may have fallen down on fulfilling needs such as job and personal security. This will in part be owing to research and feedback directly from their employees. The employees most valuable to Shell and achieving its vision may be those who are eager to participate in the innovative and technical projects that Shell has to offer, and are willing to sacrifice in other areas as a result. Every organisation should work with its employees to determine what their needs are against the desired outcomes of the company, before assessing how these needs will fit into the balance of stakeholders. An organisation who is striving to achieve business success would benefit from approaching the balancing of stakeholder needs as if it were the management of differences in needs, in other words, conflict management. Consistent communication will be required with each stakeholder group in order to identify and discuss potential conflicts. This will allow the introduction of appropriate mitigation measures within the balance. It is acknowledged that not every organisation will be conducting multinational business; however careful research into the diversity of the stakeholders is recommended. This will allow the organisation to harness the differences within its stakeholder groups, with a view to maximising potential for performance. This report has summarised some of the key areas addressed by Shell Oil in its balancing of stakeholder needs, and has made some high level recommendations for other organisations to consider. Any organisation that is keen to achieve business success will no doubt find value in research regarding Shell’s approach. References Benson, A., and Rice, M., 2009a. Developing and Sustaining Effective Teams Guide 2: What are you there for? Setting Objectives. London: Royal College of Nursing. Available from: http://www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf [Accessed 02 February 2010]. Benson, A., and Rice, M., 2009b. Developing and Sustaining Effective Teams Guide 6: Some thoughts about conflict. London: Royal College of Nursing. Available from: http://www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf [Accessed 02 February 2010]. Benson, A., and Rice, M., 2009c. Developing and Sustaining Effective Teams Guide 4: Is everyone involved? Diversity. London: Royal College of Nursing. Available from: http://www.rcn.org.uk/__data/assets/pdf_file/0003/78735/003115.pdf [Accessed 02 February 2010]. Boddy, D., 2008. Management: An Introduction. 4th ed. Edinburgh: Pearson Edutcation. Kotter, J.P., 1990. What Leaders Really Do. Harvard Business Review, 68 (3), 103-111. Available from: Business Source Premier, EBSCOhost [Accessed 31 March 2010). Lindsay R. and Pagnamenta, R., 2010. Shell tries to appease investors with caps on pay. The Times, 17 February. Available from: http://business.timesonline.co.uk/tol/business/movers_and_shakers/article7029759.ece [Accessed 21 April 2010]. Royal Dutch Shell plc, 2005. Shell General Business Principles. The Hague: Shell International Limited. Availa ble from: http://www.shell.com/home/content/aboutshell/who_we_are/our_values/sgbp/sgbp_30032008.html [Accessed 03 April 2010]. Shell International B.V., 2010a. Our approach to reporting. The Hague: Shell International B.V.. Available from: http://www.shell.com/home/content/environment_society/approach_to_reporting/our_approach/our_approach_to_reporting_26042007.html [Accessed 03 April 2010]. Shell International B.V., 2010b. Jobs Careers. The Hague: Shell International B.V.. Available from: http://www.shell.com/home/content/careers/ [Accessed 03 April 2010]. Shell International B.V., 2010c. Rewards Benefits. The Hague: Shell International B.V.. Available from: http://www.shell.com/home/content/careers/professionals/rewards_and_benefits/professionals_rewards_benefits_13092006.html [Accessed 03 April 2010]. Shell International B.V., 2010d. Meet Our Professionals. The Hague: Shell International B.V.. Available from: http://www.shell.com/home/page/careers/our_people/tool/app_xp_meet_ou r_people.html [Accessed 03 April 2010]. Shell International B.V., 2010e. Programmes. The Hague: Shell International B.V.. Available from: http://www.shell.com/home/content/environment_society/society/our_neighbours/social_investment/programmes/ [Accessed 03 April 2010]. Shell International B.V., 2010f. The beginnings. The Hague: Shell International B.V.. Available

Theoretical Perspectives Of Multiculturalism And Multiracialism Politics Essay

Theoretical Perspectives Of Multiculturalism And Multiracialism Politics Essay Within any multicultural society lie numerous complexities. From the States definition to the implementation, limitations within the multicultural theory and other contributing factors can however complicate its compatibility to academic, political rhetoric and social reality. For Australia and Singapore, geography, history and political culture set these countries apart in the definition and employment of multiculturalism. Australia is a country with a diverse ethnic and cultural makeup; Singapore on the other hand has a longstanding adherence to the four founding ethnic groups. But within respective cases, discrepancies emerge within the context of academic and public interpretation, making the multicultural affair both a loved and loathed subject. By juxtaposing multicultural Australia with multiracial Singapore, this chapter will introduce a broad overview of the multicultural/ multiracial debate that has challenged the reality of these contemporary nation-states. It will begin with the discussion of Benedict Andersons theories of imagined political belonging. This will be followed by a close analysis of the measures that have been sought to reconcile the nation-state framework within Australia and Singapore. The chapter will then explore the theoretical debates that exist within the State administration before concluding with an overview of these approaches by drawing upon their similarities, divergences and their impacts on their respective societies. Globalisation and cultural homogeneity The conventional notions of citizenship and national identity have been synonymous to the ideology where national belonging is limited to a single nation. More recently however, the processes that drive migration, the influx and settlement of transnational workers and global economic development have resulted in increasingly heterogeneous communities within nation-states (Castles and Davidson 2000; Soutphommasane 2005). Faced with such dramatic challenges to the imaginations of homogeneity, the traditional idea of citizenship is increasingly undermined as states find it difficult to manage their internal framework based on a presumption of ethnic and cultural homogeneity. The core vision of nationalism is the idea that it consists of individual citizens that share a distinct and autonomous national culture. Benedict Andersons whose works influence us on the way we think about nation-states, observes that a nation is a makeup of a political community that is imagined as essentially sovereign and limited through the stimulation of deep emotional attachment: Nationality, or so, as one might prefer to put it in view of that words multiple significations, nation-ness, as well as nationalism, are cultural artefacts of a particular kind. [These artefacts] once created à ¢Ã¢â€š ¬Ã‚ ¦ became modular, capable of being transplanted, with varying degrees of self-consciousness, to a great variety of social terrains, to merge and be merged with a correspondingly wide variety of political and ideological constellations (1991: 4). At the heart of Andersons argument is the idea that nationalism is built on what is almost purely an emotional connection that binds communities together. The imagined nets of kinship between persons and the State allows diverse communities to connect with each other without actual knowledge of their fellow members, and these invisible ties that motivate them to risk their lives for the nation-state in times of warfare under the perceived imagining of their nationhood (7). Such imaginings which are based on the ideological construct is at the core of nationalism. When they are absent or otherwise eclipsed by difference, these imaginings are imposed or buttressed by the State. In another influential discourse, Ernest Renan (as cited in Eley and Suny 1996: 42) suggests that national identity cannot exist without first submerging difference, including cultural and ethnic distinctiveness that could prove divisive.  [1]  The existence of national identity is dependent on the States ability to organise a universal set of values and cultures for its society, or as Castles and Davidson indicate, One has to be made into a national before he or she can become a citizen (2000: 27). Without these national imaginings, the legitimacy of the State probably would not have prevailed. Under the pressures of globalisation and the changing character of migration towards the end of the twentieth century, the traditional notion of citizenship where political belonging is limited to one nation began to evolve. As mass international migration leads to the proliferation of cultural and ethnic diversity within national communities, it consequently became increasingly untenable for nation-states to maintain the ideology of a homogenous national culture (Soutphommasane 2005: 401). Such shifts in migration patterns have undermined even the strongest argument about homogeneity. Japan for instance, where the State has long made claims about the homogeneity of its population, is now forced to recognise the reality of ethnic minority workforces that have become increasingly prominent in Japanese society (Castles and Davidson 2000: 157)  [2]  . Scholars and political elites have also begun to recognise that new measures were necessary to recognise such social changes, especially the need to accommodate cultural pluralism brought about by the movement of people across national boundaries. In relation to this, scholars have critically studied the multifaceted processes of migration and have produced a vast number of works in this field, including new and plural systems of identification and belonging (Lawson 2000), transnational communities and hybridisation (Bailey and Smith 2004), and new patterns of belonging and citizenship (Castles 2002; Joppke 1999; Law 2002). The multicultural debate: the case of Australia Affected by the processes of globalisation, a number of countries have begun to expand the traditional notion of universal citizenship in legislation and public rhetoric to include every individual, especially minorities, into a re-badged national culture under the new form of multicultural citizenship. Multicultural citizenship acknowledges the practise of culture and formation of identities in a variety of social and cultural contexts, departing from the antecedent understanding of monoculture and homogeneity (Soutphommasane 2005: 403). It also recognises minorities, ostensibly furnishing such communities with stronger voices in decision-making at the local, national and international level (Moodod 2007). The shifting nature of State-society relations in Australia, under the broader ambit of multiculturalism, provides us with one of the most obvious examples in the development of multicultural institutions and policies. Up until the mid-twentieth century, Australian society had been relatively homogenous, with over 90 percent of the ethnic dynamic identified as British during the post-war period in 1947 (Dunn and Forrest 2006: 210). And for most of Australian culture and institutions, the Anglo identity poses as a dominant influence. However in the beginning of the 1970s, the demise of the White Australia policy and the nations demand for skilled labour attracted an influx of non-white groups into the Australian society (Anderson and Taylor 2005: 470). It gradually became difficult for the State to sustain the myth of its national identity on the basis of Anglo-Celtic origins. The dominant community had to accept realities of ethnic diversity and a cosmopolitan identity, although resistance towards this continues at all levels of Australian society to this day. Incidentally, multicultural citizenship is a subject of controversy in the political and academic lexicon. The idea of multiculturalism, which was introduced in Australia as a public policy to manage cultural differences, was condemned in some quarters as being oppressive, undermining the quintessential Anglo-Celtic heritage of the nation (Bulbeck 2004; Johnson 2002), as well as being a threat to national security (Noble and Poynting 2008). The issues of immigration and social cohesion have become widely familiar to the Australian media and public. Today, multiculturalism continues to be a recurring subject of contest as recent events in Australia, such as the Cronulla Riots in 2005 and the assaults on Indian students in Melbourne in 2009 have shown. In each instance, the friction caused by deeply entrenched and unmanageable differences have brought the issue of cultural divides back into the public sphere.  [3]   The interpretation of multicultural citizenship in Australian political administration has a long tail, and has assumed diverse meanings under various political leaders. When the Whitlam government first unveiled multicultural programs in the 1950s, the purpose of the policy was to direct welfare services and forms of assistance to disadvantaged groups, namely migrants from non English-speaking backgrounds and those with little political and social representation. However when the Fraser government came into power in 1975, this political understanding of multiculturalism changed. Instead of simply being about the provision of welfare services, multiculturalism became a bipartisan policy that underscored the significance of cultural preservation for various ethnic groups, with a pragmatic approach to foster minorities voices within the society (Castles and Davidson 2000: 170). It was during this period that multiculturalism functioned as a policy directive, in hope that it would facil itate access for minorities and marginalised groups to fully participate and benefit from social, economic and political aspects. This continued to the 1980s until multiculturalism began to encompass a wider definition than the mere representations of cultural and ethnic entities. By then, it also (controversially) began to push into a new national ideology where it represented the buttress of national culture and identity in Australia (Galligan and Roberts 2003). From a policy that had been specifically associated with migrant resettlement services since its emergence, multiculturalism in the 1980s progressed to the advocacy of accepting and celebrating cultural diversity within Australian society. [Multiculturalism is] a model to be worked towards-a vision for the futureà ¢Ã¢â€š ¬Ã‚ ¦ Multiculturalism should not just mean majority group assistance for minority cultural groups, but rather should be a way of perceiving Australian society as a whole Department of Immigration and Ethnic Affairs, 1982 (as cited from Galligan and Roberts 2003). The Keating government was keen on creating a new national identity based on the diverse nature of cultural groups within its society, its independence from the British monarch, its propinquity to Asia and its necessity to flourish in an increasingly globalised economy (Johnson 2002: 175). In a radical departure from traditional notions of Australian national identity, Keating wanted a national identity to acknowledge the British and Irish heritage in Australias history, judiciary system and culture, but yet was also distinct from core political values that privileged British identity (176). The new Australian identity, according to him, would illustrate his hope of Anglo-Celtic Australians embracing multiculturalism for the future social and economic benefits of the nation. Keatings policies were unpopular, garnering backlashes from politicians, scholars and public. This largely relates to the notion of multiculturalism displacing the legacy of Anglo privilege with a more cosmopolitan and inclusive national identity. There were concerns that broader conceptions of Australian identity could overhaul distinctive values and qualities that make up the uniqueness of Australian culture and subsequently disregard mainstream Australians for the interests of non-Anglo ethnic groups (Johnson 2002: 177). Hence, fear and tension began to heighten as the dominant group felt progressively pressured to surrender their privileged position under the escalating diversity of ethnic groups. Within the political framework, Keatings vision for new Australia reached an important juncture in 1996 when two public figures publicly opposed to his policies Pauline Hanson and John Howard. Following this marked a drastic decline in the significance of multiculturalism as the usage of the term became eschewed in Australian politics (Castles and Davidson 2000: 165). Beyond what could be described as reflexive ripostes to threats at cultural power, criticism surrounding the idea of multiculturalism have also much to do with its indistinct and constantly-evolving definition. (Ellie Vasta: 212) In some cases, it was deemed to have been introduced almost accidentally by political elites to accommodate the fluctuating diversity of the society. A term that is developed on-the-spot, the understanding of multiculturalism is therefore inconsistent. On one level, it is assumed as an appropriate designation for welfare policies and on another, it merely becomes a term that describes the multiple cultures that exists within Australian society. Hence multicultural critics such as Zubrzycki 1995) blame multiculturalism for being a presupposed concept with its principles couched in jargon, and the extent of its effectiveness is not largely known. Another polemic of multicultural citizenship reveals further dilemmas in the accommodation of cultural differences within a common civic culture. According to the National Agenda for a Multicultural Australia (1989), multiculturalism must be expressed with an overriding and unifying commitment to Australia, to its interests and future first and foremost. Nonetheless Soutphommasane (2005: 408) argues that while it is important for a national culture and a sense of shared belonging to anchor a multicultural society, multicultural citizenship cannot be observed under a civic culture that is impervious to change. If so, this could undermine the political representation of minority cultures at the institutional level, contradicting multiculturalisms pledge to include citizens from diverse cultural backgrounds and provide them equal voices as the majority. Built-in cultural biases within Australian political institutions which have witnessed the entrenchment of traditions first established by the Anglo-Celtic elites would continue to pose a problem for multicultural citizenship unless it provides the basis for a more inclusive form of political identity for multicultural citizens (Soutphommasane 2005; Castles and Davidson 2000). In essence, it is never possible to classify multiculturalism as something that is either good or bad in a society. A recent survey conducted by The Age indicates that most Australians continue to support immigration despite the political kerfuffle that coloured its history (Edwards 2009). This partly points to the fact that peoples perception and experiences of migrants are often fluid and contextual (Wise 2005: 183) and as a result, they may display versatile responses between positive and negative assessments of their migrant neighbours. Drawing experiences from an ethnography fieldwork conducted within a culturally-diverse suburb of Sydney, Wise also concludes that no clear division can sit between the merits or deficits of multiculturalism even though multiculturalism continues to stand as one of the prominent topics of debate in Australias political history. One People, One Nation: the multiracial framework in Singapore Unlike Australia, ethnic pluralism has always been a distinctive and defining feature of Singapore society since its founding as a colony. Long before Singapore established itself as an independent nation-state, its society was already made up of diverse ethnic groups originating from different parts of the Malay Archipelago, Asia, the Middle East and Europe due to trading links between these countries, international migration and settlement (Lai 2004: 1). For Singapore, ethnic pluralism has also been the central challenge to societal cohesion and nation-building. In the colonial era, ethnic communities were deliberately kept apart from one another as a matter of public policy. However in the years leading to the nations independence, as events of internal unrest and racial riots plagued Singapores social order, the ruling regime the Peoples Action Party (PAP) recognised that a cohesive nation was imperative to state survival (Lai 2004: 5). Hence upon independence in 1965, Singapore immediately included the idea of multiracialism in its Constitution, and the notion served as a foundation for other policies (Chua 2003: 60). However, Singapores approach in managing its multiethnic population remains strikingly different when compared to Australia. Multiracialism in Singapore represents an aspiration of the political elites to unite ethnic and cultural differences together, emphasising on bridging social divisions and advocating a shared sense of national culture. While multiculturalism in Australia which is essentially a public policy to manage diversity as well as to police racial discrimination and racism among diverse ethnic societies (Castles and Davidson 2000l; Chua 2005; Moodod 2007), multiracialism in Singapore can be thought of as being the States chief instrument of control in social life; it is developed as a tool of necessity due to Singapores heterogeneity and represents the States opportunity to recognise cultural differences. The policy of multiracialism allows the State to suppress potential tensions among ethnic groups, pre-empting public dissent and disallowing the issue of race to threa ten the States legitimacy of rule (Barr 2006; Chua 2003). On the face of affairs, the Singapore State has been quite successful in maintaining social order and stability with this pragmatic ideology, and has managed to avoid public race-related conflicts since the start of the 1970s. Within the context of Singapore, it is firstly important to distinguish the differences among ethnicity, race and culture because these terms are often used interchangeably in public and official discourse. While ethnicity and culture are forms of social construct where communities or groups seek identification and develop relationship with each other based on differences and day-to-day interactions (Lai 2004: 2), race on the other hand is identification based on the physical attributes of a person, namely the colour of a persons skin (Franklin 2003: 470). Due to colonial history, multiracialism remains as the official term within the political administration of Singapore instead of multiculturalism. Similarly, the State employs the term race instead of ethnicity and multiracialism instead of multiculturalism. Multiracialism expresses the States intention to create social order in the face of potentially divisive issues such as race, religion, ethnic origin and culture (Trocki 2006). The CMIO model of multiracialism is an essential component of the States ideology of pragmatism. Developed as an intentional decision of nationhood, CMIO multiracialism scheme a convenient political tool for the State to homogenise cultural differences within a racial group by attributing race to essentially one culture, language and to a lesser extent, religion (Lai 1995: 179). Prior to Singapores independence in 1965, the ethnic population in colonial Singapore was diverse with many languages and cultures practised within a single race. The Chinese race for instance, constituted of the Hokkiens, Teochews, Cantonese (Chua 2005: 5) as well as other linguistic communities who shared different culture and traditions (Trocki 2006: 139). Under the CMIO framework however, these differences were streamlined and orga nised around the elements of colonial history, language and geography. The heterogeneous population was categorised into four major race groups Chinese, Malay Indian and Others. Each race is attributed to one culture and one language the Chinese race is associated with Mandarin which is the official race-language; the Malay race with the Malay language; and Indian race with the Tamil language. Within the States interpretation, the CMIO model is looked upon to be the most effective approach for managing its society. In contrast to assimilation where the minority races are overridden by the dominant, CMIO model gives fair treatment by recognising all racial groups as equal in policy. It ensures that the interests of minorities and their interests are protected so they are not disadvantaged in the society, as well as providing equal opportunity for them to advance. Most importantly, the CMIO model illustrates the States efforts for encouraging race consciousness and the divisions within the society, advocating tolerance for such differences, and the desire for individuals to mutually accept each other for the benefit of the nation (Chua 2003: 17). However while the CMIO framework allows for the simplification of racial interpretation in both private and public lives, scholars have observed that it is in fact problematic. In recent years, multiracialism classification of CMIO surfaced once again in the light of academic debate as the nation steers itself towards integration of the world economy under the processes of globalisation. The Singapore states desire to attract what it calls foreign talent has opened the door to a high density of transnational relations as economic policies have resulted in a large influx of migrant workers (Yeoh and Chang 2001; Yeoh 2004): It is precisely for our childrens sake that we must take this open, cosmopolitan approachà ¢Ã¢â€š ¬Ã‚ ¦ However talented we may be, it is impossible for us to produce in our next generation the same constellation of talent, the same richness and diversity of backgrounds and abilities, just from the children of three million Singaporeans. -The Straits Times, 25 August 1997. Scholars have expressed concerns that the presence of transnational workers could invite a population that is increasingly too heterogeneous to be defined within the parameters of the CMIO classification. As Yeoh (2004) points out, a cosmopolitan Singapore shifts away from the older stance of multiracialism and the nations quest to build a cohesive society based on the four founding races (2442). For the government, it has long since been its ambition to assume individuals to have a fixed and unequivocal ethnic identity under the CMIO model; cosmopolitanism on the other hand invites fluid and complex forms of identification that can no longer be homogenously recognised. Increasingly, individuals of heterogeneous backgrounds would feel suppressed by the state-imposed CMIO model which limits them to negotiate and choose their own identity, leading to consequences where individuals feel unrecognised and separated from their ethnic classification (Lai 2005: 11). Under such circumstances, there would be Chinese and Indian migrant workers that do not subscribe to the CMIO-defined Chinese category, as well as those who feel that CMIO-defined Others is an insufficient representation of their race. Meanwhile the local community is also aware of the paradigms weaknesses: What [does] the CMIO classification in Singapore for? Are you against or for that? I do think its ridiculous that children of mixed heritage have to be forced to take their fathers races as theirs. I think the CMIO classification is merely for the govt to carry out their plans, such as HDB racial policy and so on. However I find it totally unnecessary. Sgforums.com, 27 February 2005. The indication of forced in the writers assertion explains her belief that social reality is actually more complex than the States simplified view with the CMIO multiracialism model. Instead the writer views the model as a coercive method for nation-building policies, as well as overwriting individualism for the societal good. Another contributor expresses her views on the limitations of the CMIO multiracialism model, and how it critically de-emphasises the importance of dialects that exist within the Chinese language other than the official race-language, Mandarin: An abundance of knowledge of Chinese traditions, values and history is contained in the oral and written embodiments of these southern Chinese languages, such as surviving literature, operas and stories. Sadly, the chain of passing down this heritage is being lost rapidly in Singapore. -Sgforums.com, 7 March 2009. Deng is exasperated that the governments move to suppress the use of dialects with the Mandarin language has a cost to bear. While the present Chinese community are mostly bilingual in English and Mandarin something that the government hopes to achieve, dialects also quickly become a language unknown to them. Chua (2003) describes this phenomenon as one of the consequences of the state-imposed CMIO multiracialism model where the understanding of racial harmony is minimalist and lacks substantial cultural exchange, deep understanding and even less cultural crossing of boundaries (75). This reinforcement is built on the tolerance of differences, as well as the governments aspiration to prioritise a shared sense of commonality and national identity before ethnic identities. The CMIO classification model also has internal contradictions if one approaches the idea of cultural difference within anthropological paradigms. As Franklin (2003) indicates, culture is in essence a complex notion which is malleable, flexible and also contestable (477). Rather than being fixed, it carries a mobile meaning which overtime can be moulded, lost, changed under the conditions of everyday life. Likewise, ethnic identity is a makeup of longstanding history, culture and tradition that equip members with an exclusive shared sense of belonging and membership (Lai 2005: 10). Hence it is not possible for identities, under the circumstances imposed by the State, to be effectively curtailed to a homogenous identity shared by a particular race group and subsequently, a homogenous identity shared by the national community. In reality, identities from cultural context can never be completely displaced by national identities (Bader 1997). The States ambition of protecting minority interests with the CMIO multicultural model also promises more optimism in rhetoric than in reality. Multiracialism in practice does not translate into equality for all races; accounts of marginalisation, especially among minorities, continue to pose a significant problem for Singapores ethnic-relations.The introduction of the Speak Mandarin program towards the end of 1970s which was intended to serve as cultural ballast for the non-English educated Chinese is suggested to reveal biases in its implementation that would in turn disadvantage non-Chinese race groups (Trocki 2006: 153). The program which is seen as an effort by the government to align Singapore with Chinas emerging affluence and to create Chinese cultural elites became less significant when it comes to other second languages. Despite the fact that the Malay and Tamil languages are the nations official languages, there was lesser push from high status institutions to promote thei r usage (Gopinathan, Ho and Vanithamani 2004: 236). Similarly, Michael Barr noted significant levels of cultural bias within the education system which often put non-Chinese children at a disadvantage (Barr 2006). He argues that the disparate portrayal of uplifting Chinese and the boisterous non-Chinese in the school textbooks, along with racial stereotype, depictions of prejudice and racial consciousness, would detrimentally deprive minorities of inspiring role models, undermining the States meritocracy ideal and its emphasis on equality as a method for encouraging harmony and understanding among all race groups. Australia and Singapore compared This chapter has illustrated the differences between the management of multiethnic population in Australia and Singapore. While multiracialism in Singapore has been inscribed in the Constitution since the beginning of its sovereignty and has been incorporated in many of its public policies since, multiculturalism only emerged in Australia during the 1970s as a policy to control differences. Secondly, for reasons of colonial history, Singapore uses the word race in replacement of ethnicity and uses multiracialism instead of multiculturalism as the official term within the political administration. And thirdly, Singapore functions on a political culture disparate from Australia. Being a one-party state, the Singapore government rules in a politically-hegemonic position with little risk of being displaced by alternative sections of parliamentary power, therefore establishing a form of governance that is deviated from the Western understanding of an open and liberal democracy. And unlike Australia, the Singapore government predominantly uses multiracialism as an instrument of social control. And such elements can be illustrated in the CMIO model where the government streamlines cultural differences to simplified classification, as well as controlling and advocating languages deemed as beneficial for the national interest. For Australia, the definition of multiculturalism evolves overtime in political administration as a consequence of responding to realities. However even when both countries have a different inherent understanding of multiculturalism, they present weaknesses and dilemmas that contradict respective political intentions of managing a multiethnic society where minorities risk domination of the majority at the socio-political level, and are subsequently put to a disadvantage. And in both countries, both governments emphasise greatly on national culture and language by placing individuals allegiance to the nation before their own ethnic and cultural values. But in the process of doing so, scholars in both contexts noted the costs of doing so. In the case of Australia, minorities risk being displaced by the dominant Anglo-Celtic group as well as underrepresentation at the political level especially if local institutions remain unreceptive to change. And in the case of Singapore, the importance of dialects and its values that are increasingly displaced by the State-imposed CMIO model, resulting in a minimalist understanding of r acial harmony where race groups do not engage, interact and have a deep understanding of each others cultures.