Conflict and Natural Resources Relationship to Growth

Conflict and Natural Resources Relationship to Growth Is the incidence of Conflict and an abundance of Natural Resources in African States  correlated with Economic Growth? Table of Contents (Jump to) Chapter 1: Introduction 1.1 Aims and Objectives 1.2 Overview Chapter 2: Literature Review 2.1 The â€Å"Resource Curse† economic theory 2.1.1 The African Link 2.2 The causes of the â€Å"Resource Curse† 2.2.1. The â€Å"crowding out† cause 2.2.2. Quality of institutions 2.2.3. The â€Å"Dutch Disease† model 2.2.4 Other theoretical economic arguments 2.3 Civil war and economic growth 2.4 Natural resources role in Civil war Chapter 3: Influence of natural resources on economic growth 3.1 The cause of â€Å"the resource curse† 3.2 Is â€Å"the recourse curse† relevant to Africa? 3.3 Other influential factors Chapter 4: The role of conflict Chapter 5: Empirical evidence Chapter 6: Conclusion References During the course of the past two or three decades many economists and academics have been endeavouring to discover why a proliferation of natural resources, which is normally considered to be a wealth generating sources often have an adverse effect upon emerging economies, slowing rather than increasing the pace of development (Rodriguez and Sachs 1999, p.277 and Isham et al 2005, p.1). Other studies, concentrating particularly upon emerging nations is areas such as the African continent, have also claimed that there is a link between the proliferation of natural resources and political unrest and conflicts, which manifest themselves in â€Å"civil wars† (DiJohn 2002, p.1). A number of theories have been advanced in an effort to offer an explanation for this phenomenon. These include the â€Å"resource curse† theoretic model promoted by Gelb (1988) and Sachs and Warner (1997); the â€Å"rent-seeking† and â€Å"Dutch Disease† models referred to in research carried out by Torvik (2001 and 2002) and DiJohn (2002), whilst others link the causes more directly to the institutions and political conditions pertaining to the individual nation (Mehlum et al 2005 and Isham et al 2005). However, other researches have suggested that such models should be treated with caution. For example, Stijins (2005, p.3), suggest that earlier â€Å"resource curse† models have limitations, and this view is echoed in the works of Rosser (2007, p.39) and others. There have been similar divisions across the academic divide regarding the link between the level and treatment of natural resources and the propensity for civil unrest and violence, which culminates in most cases in civil wars. Whilst many observers view the cause of this unrest as being linked to natural resources and the political environment (Keen 2005, p.12) and the â€Å"difference in quality of institutions† (Mehlum et al 2005, p.3), others, including Rosser (2007, p.40), suggest that the level of strategic importance of the location of the individual nation may also be a determining factor, if not in the causality of civil war then in its potential longevity and likelihood of its reoccurrence. In addition, as Collier (2003, p.6), the globally perception held in many areas, that â€Å"nothing can be done† to end such disputes, add to the problem. The divergence of views and research results indicated previously does raise questions regarding the efficiency and effectiveness of any action that may be taken to resolve the issues outlined, either within an individual nation or when addressing a specific geographical area. For example, whilst addressing the â€Å"resource curse† or â€Å"Dutch disease† may have some positive impact on the economic growth and development in emerging economies, it could follow that without a simultaneous response to address the issue of political structure, institutions and civil war, such benefits would be negated by other influences. 1.1 Aims and Objectives The intention of this paper is to evaluate whether there is a common denominator that can be found to link the entire multitude of research together into one cohesive argument. Using the African states as a basis for this research it is felt that the conclusion of the paper could add to the continuing research into finding a unique theoretical model that will provide a format for improving the economic growth and development of poorer nations, particularly those that have not been seen to have gained economic growth and development benefits from their natural resource levels and capabilities. Thus, to identify a fundamental aim for this paper, it is considered that the conclusion of the study will be intended to seek an answer to the following question: â€Å"Is the incidence of Conflict and an abundance of Natural Resources in African States correlated with Economic Growth?† Furthermore, in order to provide a structure that will assist with the achievement of a conclusion to this conundrum, the author has set four main objectives for the research, which in concise terms can be identified as: Providing an assessment the relationship between a country’s economic growth and its dependence upon the export of natural resource products. Evaluating the claim that there is a link between civil war and economic growth and seek to distinguish the key elements that pertain to that link, which might include institutional and political performance. Assessing the level of probability of civil war resulting from a nations dependence upon natural resources. Reviewing the impact of strategic location, or lack of, and the potential influence this has upon internal conflict that might exist within the development process of an individual national or regional economy. 1.2 Overview For ease of reference the paper has been organised in the following manner. Following on from this introduction, in chapter two a critical review of recent theoretical literature relating to the subject being studied will be conducted. This will include an overview of the theories relating to natural resource impact and dependency, the relationship between civil war, natural resources and economic growth and other arguments that have been expounded upon in recent literature. Chapter three includes a discussion on the influence that natural resources has economic growth and political unrest and this is followed in chapter four by a more detailed analysis of the role of that conflict plays economic performance of nations who have these resources. In chapter six we provide and analyse the empirical evidence as it relates to the nations of Africa. This structure will enable us to reach a conclusion in chapter sever regarding the question set for the study (see page 5). A bibliography of sources and appropriate appendicles follow the conclusion of the research. As stated in introduction to this research, there has been a considerable amount of research carried out in regards to the influence that a wealth of natural resources has upon the economic growth of the poorer and emerging countries, as well as the relationship this has upon civil war and political unrest or imbalance. Within this review it is intended to focus upon the main economic and conflict theories that have been developed and discussed in recent decades. 2.1 The â€Å"Resource Curse† economic theory It is the negative or reduced economic growth patterns that have been experienced by nations that have significant natural resources, which has given rise to the term â€Å"resource curse,† and which has given rise to a considerable amount of literature and research since the late 1980’s, amongst the foremost of which is that conducted by Gelb (1988), Sachs and Warner (1997), Rodriguez and Sachs (1999) and Sala-i-Martin, and Subramanian, (2003, p.833), although there has been a proliferation of other works. The starting point and motivation for much, if not all of the research and literature relating to the â€Å"resource curse†, resulted from the significant difference that had been found to exist between the real economic growth performance of manufacturing and natural resource exporting countries over the years, as measured by the movement of GDP[1]. One of the latest examples of an analysis of this differential can be found in the review carried out for the World Bank by Isham et al (2005), which compared growth rates over a 40-year period (see figure 1). When converted into graphical format (see figure 2), the extent of the deceleration of national resource exporters and the differential between these and manufacture becomes more obviously apparent. As can be seen from the analysis (figure 1) in the first half of the period, when natural resources were being discovered and exploited, the GDP gap between these exporting nations and the manufactures exporters was more than halved, in fact in some periods the growth rate for natural resource rich countries was outperforming other areas (Le Billon 2005, p.13). But this improvement saw a dramatic reversal between 1975 and 1997. This performance has been directly linked to the movement of the natural resource revenue in other research, for example that conducted by Rodriguez and Sach (1999), where a similar pattern is revealed to be linked to the production of petroleum (see figure 3). However, taking the period in its entirety, as the figures and graph show, whilst the GDP for those countries that did not have a significant level of natural resources (the manufacturing exporters) grew by 1.02 %, even the best performing growth rates for natural resources elements, being diffuse at -0.43%, reveals a growth rate gap of 1.45%. At the extreme end of the scale according the Isham et al (2005, p.12) that gap exceeds 3.5%, which explains why when taken as a whole the differential between the two types of exporters increases to 3% by the end of the period being studied. 2.1.1 The African Link The majority of the research that has explored the â€Å"resource curse† has determined that this phenomenon has been particularly noticeable in the case of poorer and developing nations where, despite their high levels of natural resource and reserves, growth levels have been low or even regressed, in stark contrast to the performance of other nations that do not have the luxury of natural resources (Rodriguez and Sachs 1999, p.277 and Sach and Warner 2001, p.828). For example, Mehlum et al’s (2005) research concludes that many African countries with such resource levels have been afflicted by the curse, particularly those in the Sub-Saharan regions, which include Nigeria, Zambia, Sierra Leone and Angola. In support of the link between the â€Å"resource curse† and the African nations, researchers have used data from a variety of sources as evidence to support their hypotheses, most of which is based upon the analysis of GDP. For example, using a similar period to Isham et al (2005) (see figure 1 on page 8), the World Bank â€Å"World Development Indicators† show that, although rich in resources to a similar if not better level than other developing countries, the Sub-Saharan regions of Africa have fared much worse than others (see figure 4), Similarly, long-term patterns, dating back nearly two centuries (see figure 5), are used to support the fact that the curse is caused by factors outside of the possession of the resource itself. 2.2 The causes of the â€Å"Resource Curse† In investigating the cause of the â€Å"resource curse,† current literature has a divergence of views relating to the economic, political and other elements that conspire to create this environment. Various researchers have identified a number of different factors as being the root causes of, or significant contributory reasons for the â€Å"resource curse.† 2.2.1. The â€Å"crowding out† cause Of the most widely cited research, which includes the studies of being Sachs and Warner (2001) and Gelb (1998), describe the main issue as a effectively being a â€Å"crowding out† situation, whereby the concentration upon the natural resource has led to a situation where other exportable resources, such as manufacturing and production exports, which are considered to be important elements in a nations economic growth process, are at worst effectively neglected, or at best considered to be of reduced importance. This theory is supported by other research. Torvik (2002, p.455-456) acknowledges that this â€Å"crowding out† theory works on the premise that â€Å"an increased amount of natural resources then lowers productivity in all [other] sectors† of the economy. One popular variation of this model that has been developed is known as the â€Å"Rentier† state model (Torvik 2002, p.455). Torvik (2002, p.456) explains that in this case the negative impact on growth is generated by the fact that as powerful groups are attracted to the natural resource, they create an overcrowding within the natural resource sector, which again has the effect of contributing to the lowering growth rates. Sachs and Warner (2001, p.833) suggest that the major elements of â€Å"crowding out† are the fact that perceived and actual increase in wealth generated from the resource increases demand and leads to higher prices throughout the economy, thus making manufacturing less competitive, particular in respect of international trade. In addition (Ibid, p.835) the research also suggests that another contributory factor is the loss of â€Å"knowledge† available to manufacturing and other sectors caused by the profit attraction of the natural resource sector, which adds to the diminishing of the competitiveness of these sectors. Innovative entrepreneurs will be attracted to take their resources away from production and into the natural resource sectors, which offers them a higher level of profit and return at a relatively lower costs. In comparison therefore, the manufacturing areas are seen to be unproductive (Mehlum 2005, p.5), which is bad for economic growth. This explanatio n concurs with the results of Sala-i-Martin and Subramanian (2003, p.15 and Le Billon, 2005, p.5), which indicates that the movement of labour away from agriculture to natural resources has contributed to a near halving of this sectors share of GDP in many countries, as evidence in Nigeria. 2.2.2. Quality of institutions Other research, in dissimilarity to the popularity of the popular Sach and Warner view (Mehlum et al 2005, p.5), promotes the theory that the causes of â€Å"natural resource curse† are more closely related to the political and institutional failure to deal with the revenue, or â€Å"Windfall Gains† as Dalgaard and Olsson (2006, p.1) and others describe them. Sala-i-Martin and Subramanian (2003, p.8) findings in a study of the economic growth situation in Nigeria suggest that natural resources are â€Å"detrimental to institutional quality.† However, their research does find that this adverse effect of institutions appears to be more significant with oils and minerals than other natural resources and that once there is control within these institutions, the negativity impact ceases (Sala-i-Martin and Subramanian 2003, p.12), a view that Isham et al (2005, p.21) takes further by suggesting that the type of resource will â€Å"play a large role in shaping what kin ds of institutional forms exist and persist.† An efficient, effective or strong institution or government can be modeled largely on the western demographic models, where this is a large degree of interaction and connection between the political forces and the citizens, with transparency and accountability being an integral part of the institutions structure (Moore 2004, p.313). Similarly, in cases where strong institutions exist, he likelihood is that the natural resource will be owned by the people, (albeit it through shares in corporations), rather than the state itself. The only connection between state and resource will be through the taxes that it levies on the commercial profits made from that resource. Weak institutions tend to be less democratic, in some cases being controlled by dictators and military juntas that pay little heed to the needs of the citizen, preferring simply to concerns themselves with the needs of their power and personal wealth. Mehlum (2006, p.5) studies also confirm the institutional quality as being an important influence, in this respect leading to their conclusions that the â€Å"resource curse† is more prevalent in countries that have weak or poor quality of institutions, being those that are undermined by ethnic or non-democratic processes (Le Billon 2005, p.24). They describe these weak institutions as being â€Å"grabber friendly† A survey carried out during the course of their research found that out of 87 countries examined, only 15 were considered to have level and quality of institutions necessary to be effective in avoiding the affects or the curse. As with the earlier discussion on GDP, Isham et al (2005, p.13), again provides us with data support of the institutional influence (see figure 3). If we look at the top half of this list, which represents the elements of weak institutions, we see that whilst manufacture exporters still achieve a growth pattern, albeit small, resource exporters are afflicted with negative growth. Conversely, with the stronger elements of institutions in place, the natural â€Å"resource curse† is not apparent, with the resource exporters showing all the signs of reasonable levels of economic growth. Whilst agreeing with the principle that, particularly in Africa, institutions and the political structures are weak and therefore at risk from the â€Å"resource curse,† Dalgaard and Olsson (2006, p.4) add another element to the discussion, claiming the â€Å"windfall† element of the resource rent, added together with the level of Aid the country receives, exacerbate the problem of â€Å"resource curse.† Likening the resource windfalls to a lottery win Dalgaard and Olsson suggest that, faced with this relatively sudden new found source of wealth, the institutions are not sufficiently experienced in being able to administer it effectively and this produced a negative effect in institutional areas such as the rule of law and levels of corruption (Dalgaard and Olsson 2006, p.25). This is evidenced by the fact that â€Å"An IMF report on Angola, for example, suggests that close to $1 billion disappeared from the state coffers in 2001 alone, due to corruption, while fiscal discrepancies over the previous several years represented between 2 and 23% of the country’s GDP† Ross, 2003, p.9). 2.2.3. The â€Å"Dutch Disease† model To the extent that the â€Å"Dutch Disease† model relates to the potential for a reversal of industrialisation Sach and Warner (2001) favour the â€Å"Dutch Disease† model, although they do not support the element of this argument that suggest an increase in workers wages in all areas of the economy (Sach and Warner 2001, p.836). As the term indicates, the â€Å"Dutch Disease† theory was based upon the events experienced by the Netherlands following the discovery of natural â€Å"gas† resources within the country’s national waters in the mid 1950’s (Gylfason 2001, p.2). The elements of this theory rest upon three main areas. Firstly, the fact that the upward movement of the currency for a particular country following the discovery of resources exacerbates the manufacturing and servicing sectors, in that it reduces their price competitiveness (Gylfason 2001, p.2 and Sach and Warner 2001, p..834). As Torvik (2002, p.2) indicates, because it is because â€Å"changes in the composition of production that determines the level or the growth rate of productivity,† that the upward movement of currency prices has such a negative impact on internal production and welfare. Secondly, historically is has been noted that the global prices of resource materials is subject to a high level of fluctuation, which is caused by changes in the stocks, both in the resource rich country and other areas of the world (Gyflason 2001, p.3) For example, in the case of Norway, if other gas resource rich nations run out of supplies, the Norwegian resource will increase in value. Finally, the combination of the two previous elements causes financial exchange rate instability (Sach and Warner 1997 p.358 and Gyflason 2001, p.4). Gfylason suggests that this has an adverse effect on other areas such as foreign investment. Nevertheless, irrespective of these factors, in the case of Norway, their effect was limited and this is an element that Gylfason concentrated his efforts on discovering why this country’s economic performance did not perform in the same adverse way that other â€Å"OPEC† countries experienced as a result of the discovery of natural resources, which included nations located in Africa, nor did it have the same longer term effect. The discovered differential relied upon two main elements. Firstly, that Norway had been a developed nation for some years prior to the discovery and, secondly, as a result of the development position financial, social and political institutions in Norway were more â€Å"mature† (Gylfason 2001, p.10), therefore more likely to be able to avoid the adverse effects of the â€Å"resource curse,† which was not the case with other OPEC countries. These results reinforced the conclusion of other researchers in regards to two areas, these being that there is a relationship between â€Å"weak institutions† and the curse of natural resources and that the negative elements of the â€Å"Dutch disease† is essentially only a major issue for such institutions. 2.2.4  Other theoretical economic arguments Recently, economists and observers have sought to further clarify the theoretical argument relating to the â€Å"curse† of national resources by looking at other potential theoretical arguments, which would both support and potentially extend the existing literature on the subject of the â€Å"resource curse.† For example, Dalgaard and Olsson’s (2006, p.25) research indicated that there might be a connection between foreign aid and the resource curse, particularly in African nations that are the recipients of such aid. Whilst stopping short of agreeing with Burnside and Dollar’s (Quoted in Dalgaard and Olsson 2006, p.13) conclusion on this subject, this being the â€Å"aid only stimulated growth if accompanied by sufficiently sound macro-economic policies: e.g. low inflation and budget balance,† it was felt that further research into the systems and processes used for the distribution of aid was needed, as the likelihood of a connection with the eco nomic performance of a recipient nation could not be discounted. Another argument that has been put forward as elements of cause for the â€Å"resource† curse is the impact of an individual nation’s culture and geographic position. Dalgaard and Olsson (2006, p.19 and 20) believe that these issues should not be discounted. They point out that culture has been found to have a direct link to the level of corruption that exists within a nations political institution. In terms of geographical position, Dalgaard and Olsson’s study promote two arguments to support this being a classed as a source. The first of these is related to size, where it is argued that the greater the size of the country, the more extensive will be its institutions and, therefore, if the culture has a high corruption level, this will be increased (Dalgaard and Olson, 2006, p.19). Secondly, there is a potential for a historical link between geographical and institutions (Dalgaard and Ollsson 2006, p.14). In this case, the study sets the case for arguing that, because of the problems associated with areas such as the tropics, which includes high mortality rates and tropical climates, the early influence of Western institutional structure did not expand into these areas of the world as they had in others. As an example, they cite the colonial spread, which was not as widespread in the African continent as it was in places like India. Thus, this element of the theory is based upon the fact that those countries who had a foundation of good western institutions being better able to escape the â€Å"resource curse.† Phenomenon. However, other researchers do not agree with this scenario. Sach and Warner (2001, p.2 and 3) argue that using these determinates within the resource curse studies would lead to anomalies id data, with some countries appearing to be â €Å"high-natural resource† economies simply as a result of the inadequate or negative performance of other area of their economies, and visa-versa. In this regard they hold that â€Å"geography and climate variables do not eliminate the natural resource variable.† Sach and Warner 1999, p.5). Finally, but not totally unconnected with other arguments, is the argument relating to the problem of managing sudden excess. Referred to within Dalgaard and Olsson (2006, p.1) as the ineptitude of institutions at managing â€Å"windfall gains,† other reason it is the false perception of security that accompanies natural resources, which effectively provide â€Å"people with a false sense of security and lead governments to lose sight of the need for good and growth-friendly economic management, including free trade, bureaucratic efficiency, and institutional quality† (Gylfason 2001, p.7). Taking a slightly different tangent, although with a similar vein, Rodriguez and Sach (1999, p. 278), define that these countries are effectively â€Å"living beyond their means.† The view here is that resource rich countries are consuming the revenue from this resource without taking into account the fact that, unlike other areas of production, the stock of these resources can not be produced or expanded as quickly, therefore creating an increasing gap between revenue and expenditure, which eventually lead to a situation where the nation will reach a point where future revenue may have to be mortgaged to meet current expenditure. In summary, perhaps Gyflason (2001, p.8) puts it succinctly when he states that, irrespective of which argument one supports or how the individual may qualify it in academic terms, the core agreement is that â€Å"an abundance of natural capital may erode or reduce the quality of social, human, and physical capital, and thus stand in the way of rapid economic growth.† 2.3 Civil war and economic growth Irrespective of the divergence of views expressed within the literature outline in the previous sections of this chapter, one area that almost all are agreed upon is that in addition to the lack of economic growth resulting from the â€Å"resource curse,† this growth can also be adversely affected by the political stability of the nation, particularly where conflict and civil war is involved. The common definition of civil war is that conflict which leads to one thousand deaths or more. Similarly, the popular western perception is that the causes of such conflicts are caused by racial or religious tensions (Collier 2000, p.95-96). Whilst this may be true in terms of the sides taken in internal power struggles (Keen 2000, p.24), in most cases these are fuelled by a struggle to control resources. To this extent there is an economic element (Keen 2000, p.22 and Berdel and Malone 2000, p.28). Mehlum (2003, p.275) and Keen (2000, p.29) reinforce this viewpoint with the findings that those involved with these conflicts include elements from all aspects of society, such as rebels, military, political and commercial factions. In other words, particularly in countries with weak political controls â€Å"a war may be seen as continuation of economics by other means† (Keen 2000, p.22) rather than a simple clash of ideologies. Methlum et al (2005, p.6) confirm this argument, showing that in a country that have institutions and governments deemed to be weak, which is the case in many African states, this results in a situation where â€Å"the government is unable to provide basic security.† They conclude that such a situation creates an environment that fuels an increase in violence and civil wars, with control of natural resources being the main success target of the conflict and, ironically, used to finance many of these activities. Providing evidence of this in his study relating to the phenomenon of conflict diamonds, Olsson (2004, p.3) states that in countries with rich resources and weak institutions, natural resources can often lead to a triangular conflict environment of â€Å"a ruler (the prey) in control of a flow of natural resource rents, and a rebel (the predator) who might choose to prey on the ruler’s natural resource,† with the ordinary person in between these, that can create an adverse economic effect. Because the rebel wants to appropriate the natural resources, this forces the ruler to invest resources in defence, thus lessening the resources available for production and reducing the potential for economic growth. As is indicated later in this same research (Olsson 004, p.14), this situation of fuelling conflict and lining the pockets of dictators is not just limited to diamonds, but extends to a number of other natural resources. Other literature has confirmed the connection between the potential for conflict and economic growth. Rodrigueaz and Sach (1999, p.19) commenting upon the aspect of nations living beyond their means, found that, in the case of Venezuela, this leads to unrest and conflict. Dalgaard and Olsoson (2006, p.8) also identified that the high level of natural resources, when combined with weak government and low productivity in areas of production not related to natural resources, produced a â€Å"higher risk of potential conflict.† Both of these studies concluded that these conflicts served to deepen the adverse effects on economic growth. As Rodrik (1998, p.3) showed in his research, the biggest falls in GDP rates post 1975 occurred in countries that were socially divided and unable to manage conflict and these countries, more often than not, were those with high levels of natural resources (Wagner 2007). Thus it is concluded that civil war can serve to significantly damage economic growth (Rodrik 1998, p.3). 2.4 Natural resources role in Civil war One of the recurrent themes in the literature relating to natural resources, as has been identified within the previous sections, is the impact that natural resources and economics has upon social unrest and conflict. For example, Le Roux’s (2004, p.3) research suggests that as

Elderlies in the Philippines Essay

When people grow old, they either have the option of being cared for by family or being cared for by the homes. In making that choice, there seems to be a cultural pattern or tradition that is prevalent. In most Western countries, where the values of youth, self-reliance and individualism are held in high regard, the latter is chosen most of the time. In Asian countries however, like that of China where the concept of ‘filial piety’ means showing obedience, deference and respect to your elders are honoured, taking in the elderly is a common practice. The significant number of the elderly in the Philippines population is not ignorable. In the Philippines, 6.8% of the 92.1 million household in 2010, make up the senior citizen sector. Among these, females (55.8%) outnumber the males (44.2%). The ageing index of the country was computed to be at 20.3% in 2010. This means, that for every five children under 15 years old, there is one person aged 60 years and over. But to add to add to this, these elderlies once contributed to the government’s institutions and their contributions should not be overlooked even though they seem to be well past their primes. They say, wisdom comes with age. Perhaps then, this paper, that serves to analyse the perceptions and receptions of the elderly, will contribute, not only to what today’s youth and the next generation could give back to the elderly but how the community and the country, could age with the elderly, both in years and in wisdom. The discussants and interviewees have varied backgrounds from Quezon City, to San Juan City and Makati City – almost all have children, most are still married and some of them still live with their children and grandchildren. LIVING ARRANGEMENTS: The Female Prowess Most of the respondents preferred to live with their daughters who are not married. If the latter is not fulfilled, they still prefer to live with their daughters over their sons. The respondents did not like being taken cared of by those that are married already because of: a) the inlaws b) the children and b) the husband. On an FGD, a male discussant said, â€Å"Ngayon nga ang hirap nung may asawa kasi kapag kapwa babae hyan, mahirap magkasundo.† On an FGD, a female discussant said, â€Å"Nawala na ang atensyon sa magulang at sa anak na lahat.† On an interview, a female interviewee said, â€Å"Mag-iiba talaga may asawa. Susundin niya ung asawa niya.† Despite the reasons they gave however, the underlying tradition brought about by the masculine dominated post-colonial Asian Catholic values puts an expectation and/or pressure on the female children as most of the respondents, when asked, prefer to live with their daughters going with the answer, â€Å"kasi babae eh†. The fact that no further explanations were offered by some suggests that it is understood what being a woman entails. Another discussant said â€Å"eh mga anak ko kasi mga babae kaya spoiled din ako sa mga pasalubong at alaga nila†, implying that girls are generous and caring. Not only is it given in this case, but expected as well, because the respondents chose their female over their male children. Birth order Like the sex difference in the perceptions of the elderly when it comes to the living arrangements they prefer, the birth order has a relevant count in the Filipino household. The eldest is looked up to to fulfil the cumulative responsibilities of the children, although it does not take precedence in choosing the female as the caregiver of the parents. The eldest might be a man and it is expected of him to marry whenever it’s the right time. Although the eldest is usually the bearer of the responsibilities with regards to family woes, he is expected to look at the family in a macrocosm (from his own family born out of marriage, to the family of his siblings, and to the family he was born out of), thus making way for the woman in the family to focus on the microcosm picture of taking care of the elderly. Birth order is of relevance because they have the power to influence one of the discussions of the constantly persist in the family when an elderly is involved. Mon ey A few respondents said that inheritance is a hard topic to discuss because the children drag in the birth order when the discussion is opened. â€Å"Mahirap pag-usapan agn mana. †¦Ako ang eldest, dapat sa akin and ganito, ganyan.† â€Å"Dapat pag-usapan na. Mahalaga ang pinag-uusapan ang mana, para hindi na magkagulo.† Although a few wish to evade the discussion that may break up the family, others pointed out that the earlier it gets talked about the lesser the trouble it would cause. Thus, the perception between the birth order and the money involved in the inheritance is of question. However, only one respondent answered straight as an arrow when asked the question. â€Å"Siguro kung meron man doon yun mapupunta sa makakatulong pa sa akin.† Taga-payo/Nanghihimasok Whereas they passively recognize that they should take an active role in the inheritance and in their living preferences, when asked about their other roles inside within the four walls, the elderlies answered that they take a passive stance knowingly. They usually do minimal household chores for the family. Taking care of the apos also came with the list especially when both the parents are working. The role of taking care of the grandchildren seems to be a practice that is accepted by the community. The help however extends still when they offer advice to the family although most of the respondents say that their takes on the matter merely serve as guides. â€Å"Mga important decisions, ayokong makialam.† Important decisions to be made are not sometimes consulted and/or offered but most of the respondents have indicated that their children should know what they are doing and that they are only there to guide but not to commit what grandparents are usually accused of: nanghih imasok or overstepping on family matters. Pamilyang Pilipino Still on the topic of how and where one lives, the topic of Hones for the Aged were brought to the floor. One verbatim account that could best collate the answers of others are worded, â€Å"Ang maganda lang dyan eh makakasama ka ng mga taong nakaka-initindi sa inyo dahil pare-pareho kayong oldies, pero ayoko atang matrap sa loob ng institusyon maski gaano kaganda.† All the respondents who were asked about their perceptions of the Home for the Aged had negatives views and did not wish to be in a Home. A common response was the respondents’ comparison of the Homes here with the Homes in the West from: the price of going into a home, the facilities, the care received, the government support. Some were actually tolerable to the idea of a Home provided that the Home is in the US. However, the concept of Pamilyang Pilipino is still very much there as they feel that they should stick together with their families. Children taking care of their parents seemed to be a given as well as one respondent answered. â€Å"SOP dapat yun†. Another pointed out that children must be taught by their schools of the responsibility of children to take care of their elders, implying that sending them to a Home does not constitute what care is. BEYOND the FOUR WALLS Libang Outside the confines of a house, the topic of work has been discussed with the respondents. Almost all of the respondents said that their work now is mostly for them to do something. Work now is treated as a â€Å"libangan na lamang† because they have pension, the children are no longer going to school and most of them are already working too. Work keeps them busy. â€Å"Eh kasi pag tumatambay lang ako para akong nagkakasakit,†, this thought on being idle has been voiced out by a lot of the respondents. Some respondents, especially those who are not entitled to their pension and don’t have children, do intend to still work while they still can because they do feel that they need to save. The thought of work being just a necessity and not a hobby prevails.All of them however, still say that they love their job and they try to still be good at it. â€Å"Ang naapektuhan lang sa akin ay ang bilis sa pagtatrabaho, lalo na kapag may rayuma. Kung dati nagagawa ko ang task ng isang oras nagagawa ko ngayon ng tatlong oras, yung dedication sa trabaho, walang pinagbago.† Organizations Besides from work, they have social groups that they participate in. Organizations seem to be hot even with the elderly. â€Å"Dati kasi wala namang ganito. Dati ung lola ko sa simbahan lang un. Ung ngayon naman, nasa brgy kami, may ganito kami, nasa qc hall kami. Kaya dumadami ung senior na nagpparticipate.† Associations seem to make the elderly’s time more fruitful. Being church group leaders and active participants make them look forward to something. Organizations offer belongingness when it can’t be found at home and/or in the workplace. The PRACTICES of RESPECT â€Å"Para nang ang trato ng mga kabataan ay parang halos kasing edad nila ang matatanda.† The distance between the elderlies and the today’s generation seem to be closer. And whereas almost all consider this to have a negative effect, some actually disagree. In Action If the presence of many organizations seems to be non-traditional with respect to the elderlies, the practices of respect are expected and are held in high regard as well. The respondents’ responses for respect come in two forms: in words and actions. As actions speak louder than words, most of the elderly said that the practices that they did for their grandparents, ceased to exist now. Pagmamano, a distinct Filipino trait when respecting the elderly is not practiced as much anymore. So is offering a seat during a bus ride and helping them to cross the street. With respect, it’s not what you do that counts but what you don’t as well. The presences of vices or engaging in bisyos are tantamount to disrespecting your elders. In Words The long standing po and opo still seem to be in effect as no respondent brought it up. But again, sometimes, it’s not what you say, but what you don’t that could please the elders. Whereas, in some cultures, explaining yourself and whatever misconduct or shortcoming is the accepted practice to show that you respect someone who is talking to you, in the Philippines, talking back is one of the most disrespectful things you could commit. A discussant defined respect as, â€Å"Un bang pag nagagalit ako, hndi sila sumasagot sa akin.† However, not all of the respondents agreed to this. A respondent pointed out that today’s generation are not only â€Å"mas western† but are more vocal. â€Å"Ngayon kasi nagkakaroon kasi ng dialog ang mga may edad at saka mga bata. Sinasabi nila kung ano ang mali. Hindi naman lahat ng magulang tama.† The dialogue between the elderly and the youth is seen as a way of adjusting to each other’s needs. A lmost all of the respondent however prefer what was practiced then, some saying, â€Å"Dati smin, isang tingin, tiklop ka na.† Kusang Loob/Utang na Loob/Asa Respect however, encompasses not only the tangible practices. It moves in the bigger picture or dialog between the elderly and the children. When asked about the support that their children can give to them, almost all answered that they do not want to keep their hopes up. The concept of asa seems to be greatly tied to the concept of asking help. Filipinos, in general â€Å"do not want to take no for an answer†. This Ready for Disappointment mentality mentioned in Lacson, 2001, persists even in the elderlies as they would rather not ask help because, as one respondent said, â€Å"Masakit umasa.† Although almost all of the respondents answered that they are not expecting help, the concept of kusang loob is present. â€Å"I did my best to provide at nagkukusang-loob naman silang tumulong sa akin ngayon.† â€Å"Hindi ako lumalapit. Ang nangyayari, sila mismo ang gumagawa ng paraan.† The elderly do not expect help. They expect the ir children to understand that help should not be asked but it is expected to be offered. Utang na Loob â€Å"Dapat tumanaw ka ng utang na loob. Hindi ka tao kung hindi dahil sa kanila.† Most of the respondents said that it is only right to give back to people who have spent on you. Because of their Ready for Disappointment, almost all did not explicitly say that it is their children who need to give back to them. They mainly pointed out the importance of giving back. The three concepts are tied together. The elderly do not want to ask for help and get their hopes up in the fear of being hurt or disappointed. But because they feel that they’ve raised their children in a befitting manner, they should look back and â€Å"tumanaw ng utang na loob† by offering help that they won’t ask but they somehow expect to a certain point. The RISE of TECHNOLOGY The elderly, although a stickler for the ways of showing respect, try to adapt themselves to the current generation and its technology and one respondent even attributed a practive of respect through the means of technology. When asked to define respect, she said, â€Å"Kinakamusta ako sa text.† â€Å"Kahit papano gusto ko updated ako sa mga pinag-uusapan ng mga bata, sa pinapanuod at ginagawa nila. Mabagal man ako makaintindi niyang ipad-ipad ng mga batang yan pero ngayon atleast natuto na akong mag email at magchat sa facebook.† This answer should be looked at a bigger picture however because unlike the other respondents, this respondent came from one of a city with a thriving business. And with that, the respondent is more surrounded by people who aggressively take part in the fast and changing world. The enthusiasm of the respondent was echoed by most of the respondents. Some practices of respect which could not be performed by the children were unknowingly blaming technology or the children who were born into a generation that is very technology-dependent. â€Å"Dati kasi pag dating ni amang may dala silang slippers (a Philippine tradition where the children brings the father the slippers on the premise that he needs to relax after a long day’s work), eh ngayon tutok na sa TV.† â€Å"Malakas kasi ung impluensya ng napapnuod. Imbis na making sa lola. Kasi may gngawa, kasi nagkkomputer.† â€Å"Nagsasalita ka ng salita mo, un pala may nakasaksak na earphones dito.† One of the respondents also noticed the reaction of the children towards technology when the elderly tries to involve themselves with the onhand technology. â€Å"Tapos pansin ko lang siguro na maikli ang pasensiya ng mga bata..lalo na pagtechnology ang tinatanong mo.†

Understanding Where Money Goes in the Stock Market

When a stock market price for a company suddenly takes a nosedive, a stakeholder may wonder where the money they invested went. Well, the answers not so simple as someone pocketed it. Money that enters the stock market through investment in a companys shares stays in the stock market, though that shares value does fluctuate based on a number of factors. The money invested initially in a share combined with the current market value of that share determine the net worth of shareholders and the company itself. It may be easier to understand this given a specific example such as three investors — Becky, Rachel, and Martin — entering the market to buy a share of Company X, wherein Company X is willing to sell one share of their company in order to increase capital and their net worth through investors. An Example Exchange in the Market In this scenario, Company X has no money but owns one share that it would like to sell the open exchange market while Becky has $1,000, Rachel has $500, and Martin has $200 to invest. If Company X has an Initial Public Offering (IPO) of $30 on the share and Martin buys it, Martin would then have $170 and one share while Company X has $30 and one less share. If the market booms and Company Xs stock price goes up to $80 per share, then Martin decides to sell his stake in the company to Rachel, Martin would then exit the market with no shares but up $50 from his original net worth to now total $250. At this point, Rachel has $420 left but also acquires that share of Company X, which remains unaffected by the exchange. Suddenly, the market crashed and Company X stock prices plummet to $15 a share. Rachel decides to opt out of the market before it goes any further down and sells her share to Becky; this places Rachel with no shares at $435, which is down $65 from her initial net worth, and Beck at $985 with Rachels stake in the company as part of her net worth, totaling $1,000. Where the Money Goes If weve done our calculations correctly, the total money lost has to equal the total money gained and the total number of stocks lost has to equal the total number of stocks gained. Martin, who gained $50, and Company X, who gained $30, have collectively gained $80, while Rachel, who lost $65, and Becky, who is sitting on a $15 investment, collectively lost $80, so no money has entered or left the system. Similarly, AOL’s one stock loss is equal to Becky’s one stock gained. To calculate the net value of these individuals, at this point, one would have to assume the current stock exchange rate for the stake, then add that to their capital in the bank if the individual owns stock while subtracting the rate from those who are down a share. Company X would, therefore, have a net value of $15, Marvin $250, Rachel $435, and Beck $1000. In this scenario, Rachels lost $65 has gone to Marvin, who gained $50, and to Company X, who has $15 of it. Further, if you change the value of the stock, the total net amount Company X and Becky are up will be equal to $15, so for every dollar the stock goes up, Becky will have a net gain of $1 and Company X will have a net loss of $1 — so no money will enter or leave the system when the price changes. Note that in this situation nobody put more money in the bank from the down market. Marvin was the big winner, but he made all his money before the market crashed. After he sold the stock to Rachel, hed have the same amount of money if the stock went to $15 or if it went to $150. Why Does Company Xs Value Increase When Stock Prices Fall? It is true that Company Xs net value does go up when the stock price goes down because when the price of the stock plunges, it becomes cheaper for Company X to repurchase the share they sold to Martin initially. If the stock price goes to $10 and they repurchase the share from Becky, they will be up to $20 as they initially sold the share for $30. However, if the stock price goes to $70 and they repurchase the share, they will be down $40. Note that unless they actually make this transaction Company X does not gain or lose any cash from changes in the share price. Lastly, consider Rachels situation. If Becky decides to sell her share to Company X, from Rachels perspective it doesn’t matter what price Becky charges Company X as Rachel will still be down $65 no matter what the price. But unless Company actually makes this transaction, theyre up to $30 and down one share, no matter what the market price of that share is. By constructing an example, we can see where the money went, and see that the guy making all the money made it just before the crash happened.

Human Sexuality And Its Effect On Society - 2663 Words

Concordia University 2014-08-13 Introduction Human sexuality is defined as the capability of individuals to experience their sexuality and be able to express themselves as sexual beings (Hyde DeLameck, 2006). Our interest in this topic is because with time, there has been a change in rules that control human sexual behaviour. The status quo in our contemporary society is much different as compared to an earlier state of conditions, and the change has, as a result, brought the evolvement in human sexuality. People s view on virginity has changed greatly with a decrease of importance in regards to its preservation. Sexuality is essential to the economic, cultural, social and political organization of society or country. Our sexuality plays a fundamental role in all our lives regardless of age, sex or race. It forms a basic part of our personality and the decisions we make in what we do. One’s sexuality also consumes much of their time through behaviour or thoughts; at times every aspect of our lives seems to revolve arou nd our sexuality. Studying sexuality is very important since human sexuality majorly contributes to social as well as personal problems. A lingering question concerning this topic is to what extent is virginity determined by the status quo and the rules that control human behaviour? As virginity among young women has been perceived as being more valued than virginity among young men, the importance given to it is something that has been constructedShow MoreRelatedHuman Sexuality And Its Effects On Society Essay1875 Words   |  8 Pagessemester, we learned about different aspects of human sexuality. Regardless of the subject, the most important take away is diversity. All the sections discussed in and outside of class demonstrate how sexually diverse people are around the world. 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