Strong Social Responsibility Essay Example for Free

Strong Social Responsibility Essay Corporate social responsibility for many corporate bodies means engaging in some philanthropic community ventures like sponsorship, donations or giving in kind programs. However, some companies have been able to build strong relationships and partnerships with the communities and are offering practical solutions to the many social problems. That notwithstanding, most companies and organization consider such ventures as a donor-recipient relationship, rather than a mutually benefiting programs. Success of any such activities is normally considered in terms of financial contribution, the employee satisfaction or the effects on the social issue. As important as they are, such achievements do not convince many companies and shareholders because they believe that a company can only post strong profits so has to benefit everyone. And for that matter, most corporate entities do not have any corporate social responsibility program but would once in a while donate to some charitable activities as a mere window dressing to hoodwink the public that they are committed to such obligations. This paper will provide examples of companies with strong corporate social responsibility programs and have been quite successful in terms of profitability. The scale and forms of benefit strong CSR programs would offer a company can vary and more often depends on the nature of the business. Quantification of the benefits may also be a difficult task; however, there are good reasons why every corporate organization should adopt a CSR programs or policies in its operations (Orlitzky, Frank, Schmidt, Rynes, 2003). Strong social responsibility enables companies to manage risk. Managing risk is an integral part of every corporate strategy. An organization’s reputation which may take years to build may be damage in a matter of hours through accidents and incidents that are manageable. Scandals like corruption or environmental accidents may severely ruin the reputation of the company. Moreover, such incidences may attract unnecessary attention from the media, government, the courts as well as the regulations, damaging the company’s reputation further. However, developing and sticking to certain corporate social responsibilities within the company and the community can work to obstruct some of these risks. IBM has built a strong image as one of the leading companies helping in conservation of energy and environment. This has earned it respect as an environmental friendly company even as reap financial benefits from its businesses (IBM Responsibility n. d). Corporate social responsibility is a great marketing tool for many companies that have been able to exploit its benefits. In crowded and competitive markets, companies seek to have unique selling proposition which may differentiate them from other competitors in the minds of potential costumers (Orlitzky, Frank, Schmidt, Rynes, 2003). Strong corporate social responsibility can play a vital role in helping companies build strong loyal costumer base based on their distinctive ethical values. Some of the major brands like America Apparel and The Body Shop have been built on strong ethical values. Corporate service organizations may also benefit by establishing a strong reputation and best practice. Coca-Cola is one company that has been able to build a strong reputation in the market through its CSR programs. Its latest campaign dubbed Live Positively is geared towards promoting a positive and sustainable living in the world through different initiatives (Coca-Cola Company n. d. ). Although it is a peaceful message to everyone, it would help the company entrench itself as one of the number one leader in global business. A corporate social responsibility program can also be helpful in recruitment and retention of employees, especially in a competitive graduate students market. Young graduates looking for jobs normally ask about a company’s corporate social responsibility policies during interviews and firms with strong and comprehensive policies may have an edge in not only absorbing such recruits but also retaining them for a long time. Corporate social responsibility can aid in enhancing the employees’ perception about the company, especially when they are considered in the company’s CSR programs like fundraising activities and community volunteering. A good example of a company with such programs is the Microsoft Europe, Middle East and Africa (EMEA) which has an Employee Involvement Policy Framework and Program. This program started in 2004 under the joint watch of the Human Resources and Community Affairs, gives support to employees and encourage their participation in community development through voluntary programs (CSR Europe 2010). Every company or corporate body does not welcome external interference like taxation or government regulations in their operations. Having strong corporate social responsibility programs may be the first step towards convincing the government and the general public that the company does not take lightly the social issues like health, safety and environment problems, that affects the public in a community or the country in which it operates (Orlitzky, Frank, Schmidt, Rynes, 2003). This will persuade the government to license a company or organization as good corporate citizens with regards to the labor standards and its impact on the environment. Ecolab which was ranked number two among the world’s most ethical companies in 2009, has been a good example of how strong CSR programs can be beneficial both to the company and the country at large. The company has a strong commitment to help the United States reduced its greenhouse gas emission by 20 percent per every sale made between 2006 and 2012 (Environmental Leader, 2010). This initiative not only enables the company increase its sales but also helps the company build a good reputation among the public and the government. Such company may not face difficulties when it wants to acquire license for new operations either within the US or in any country. In conclusion, strong corporate social responsibility is not only a community development initiative but also a long-term corporate financial investment. The benefits of such a program are mutually good for the existence and operation of any business and for the development of the community and country where businesses operate and are sustained. References IBM Responsibility (n. d). IBM Corporate Responsibility. Retrieved on August 14, 2010, from http://webcache. googleusercontent. com/search? q=cache:obfJZix- yVoJ:www. ibm. com/ibm/responsibility/+ibm+CSR+programscd=1hl=enct=clnkgl=keclient=firefox-a Coca-Cola Company (n. d. ). Sustainability: Corporate Responsibility. Retrieved on August 14, 2010, from http://webcache. googleusercontent. com/search? q=cache:LJLNHF3zpOcJ:www. thecoca-colacompany. com/citizenship/+cocacola+CSR+programcd=1hl=enct=clnkgl=keclient=firefox-a CSR Europe (2010). Employee Involvement Program. Retrieved on August 14, 2010, from http://webcache. googleusercontent. com/search? q=cache:TEaWduxbx68J:www. csreurope. org/solutions. php%3Faction%3Dshow_solution%26solution_id%3D299+microsoft+CSR+programcd=4hl=enct=clnkgl=keclient=firefox-a Environmental Leader (2010 April, 8). Ecolab Sets New Goals for Water Use, Waste and Effluent Water. Retrieved on August 14, 2010, from http://www. environmentalleader. com/2010/04/08/ecolab-sets-new-goals-for-water-use-waste-and-effluent-water/ Orlitzky, M. Frank L. Schmidt, S. Rynes, L. (2003). Corporate Social and Financial Performance: A Meta-analysis. Organization Studies, Vol. 24 (3): 403-441.

Determinants for the Exchange Rates in Long Run

Determinants for the Exchange Rates in Long Run Table of Contents (Jump to) 1. Introduction 2. Determinants can affect the foreign exchange value of a currency in a long term 2.1. Purchasing power parity (PPP) and inflation rates 2.2. Growth rate of the economy 2.3. Interest rates 2.4. Commodity prices 2.5. Foreign direct investment and international speculation 2.6. Exchange rate expectations 2.7. Intervention into the foreign exchange market from authorities 3. Conclusion Reference list Introduction The foreign exchange market is primarily a wholesale market, where transactions are of the order of hundreds of thousands of dollars or even greater. The marketplace can consists of a telecommunication network and a range of information technology system, which help provide a mechanism for the exchange of currency around the world. The retail market where small volumes can be handled is often at a shop front location, such as an exchange bureau, a bank. In fact, the currency exchange rate is not only impacted by the law of demand and supply but also other determinants. The paper identifies and evaluates many determinants for the exchange rates in long run. These determinants are (1) purchasing power parity and inflation rates, (2) growth rates of the economy, (3) interest rates, (4) commodity prices, (5) foreign direct investment and international speculation, (6) exchange rates expectations, and (7) intervention into the foreign exchange market from authorities. The relative impact of structural shocks on the movement of exchange rates after the Bretton Woods period has examined multivariate processes. Determinants can affect the foreign exchange value of a currency in a long term 2.1. Purchasing power parity (PPP) and inflation rates If a domestic economy has higher inflation than the rest of the world, a decrease in demand for exports will result in the local currency exchange rates, which become less competitive in world market. Accordingly, there will be less demand for the local currency. On the other hand, when an increase in demand for imports as overseas goods become cheaper, compared to the domestic market, there will be an increase in supply of the local currency exchange rate. The PPP theory is based on traded goods and services. The determination of the exchange rates has sustained the maintenance of purchasing power parity between currencies. ‘PPP is indeed an important determinant of nominal currency valuation. ‘The law of one price’ asserts that, absent impediments to free trade, goods and services should have the same relative price regardless of the country in which they are sold.’[1] Which goods and services are cheaper in one country than another will be brought where they are cheap, and then to be sold where they are more expensive. From the viewpoint of exchange rate determination, PPP is useful as a reminder that the monetary policy has no long-run influence on the exchange rate. ‘When PPP diverges more than 15-20 per cent from its historical mean, that has proven to be among the most accurate indicators of a pending change in currency trends,’ [2] observed Mr. Eric Lonergan, global strategist for Cazenove in London. Nevertheless, the exchange rate can stray away from its PPP. In fact, PPP exchange rates are determined by comparing the national prices for a large volume of goods and services. A weaker PPP has contented in inflation rate, rather than actual prices of goods. The fall in the value of domestic currency results in reducing local currency rate, compared to the rest of the world. This phenomenon can offset the pricing impact of inflation. As a result, nations with different inflation rates can expect their exchange rate to adjust to offset these differentials in long run. ‘Real exchange rate movements do not completely coincide with perceived changes in competitiveness, reflecting a basic flaw in the PPP approach. Instead, the likely effects of exchange rate changes on the trade balance are often difficult to predict without further information regarding the source of the shock.’[3] The theory seems to equalize interdependence between the exchange rate and inflation rates. It seems impossible to have inflation, if the domestic market value of the currency exchange is increasing. On the other hand, it is also impossible to avoid inflation if the market value of the currency is decreasing. 2.2. Growth rate of the economy If a nation experiences higher economic growth rate than its major trading partners, the income and demand for import-export goods and services will grow at a faster rate. As a result, paying for the growth of imports will consequently result in an increase in the supply of the local currency in the foreign exchange world. ‘Productivity differences were found to have a negative and statistically significant effect both in the short-run and the long-run. This suggests that if the US becomes more productive relative to its major trading partners, incomes and imports rise, causing depreciation of the US dollar.’[4] ‘In particular, structural components in both the current and capital accounts underlying each countrys net trade and net foreign asset positions are shown to influence the path of the long-run real exchange rate for each country.’[5] The supply impact is to reduce the price of the local currency exchange while the demand impact is to increase the price of local currency. The net impact will depend on the strength of each separate cause. 2.3. Interest rates Fiscal considerations become fundamental determinants of the decision of different foreign exchange regime. ‘In the long run, in contrast, exchange rate movements are driven by the fundamental, leading to a relationship between interest rates and exchange rates that are more consistent with UIP [Uncovered interest parity]’[6]. What has happened in foreign exchange market might not accord with what happens a country where experiences higher interst rate and a fall in the value of its currency. If interset rates are constant, a country which has higher interest rate will result in higher inflation. Higher inflation will cause a depreciating currency. The relationship between the impact of distinguishing interest rate movements on exchange rates can provide different impacts in terms of local currency exchange rate experiencing higher interst rates than the rest of the world. In fact, higher interest rates will encourage capital inflow to the domestic economy and discourage capital outflow. This phenonmenon will result from oversea investers who have tried to place funds in dosmetic market in order to take advantage of higher returns. As a result, a domestic buyer can invest in a greater proportion of funds in domestic financial markets. 2.4. Commodity prices If export from a nation becomes more expensive due to inflations, oversea importers will turn to other nations. As a result, the value of the exporting nation will fall, together demand for and the value of the domestic currency. On the other hand, if particular goods and services in a nation become more expensive because of the growth in commodity prices, the importers cannot choose other suppliers since commodity prices are a worldwide incident. As a result, the importers will continue to import commodities from that nation. The total value of the exports will go together with the demand for the domestic currency. The value of domestic currency will increase. The relationship between the trade balance and the exchange rate might not reveal the whole picture of the impacts of real depreciation on the trade balance and import-export flows. ‘There exists a significant long-run relationship between the-dependent variables and their determinants in most cases. A real depreciation of US dollar will decrease US imports and increase US trade balance overall in the long run.’[7] The import-export trading functions have shown that currency depreciation has different impacts on imported-exported goods; the authority should take into consideration in a nation’s trade policy. 2.5. Foreign direct investment and international speculation Foreign direct investment and international speculation can drive the domestic economy changes. Capital inflows to strong economies and outflows from weaker economies depend on how foreign investors speculate the perspectives of a domestic economy. Likewise, a recent decline in domestic currency as its economy becomes less attractive for investment compared to that of world’s largest strong economy. ‘Determinants of the equilibrium real exchange rate also include factors that affect the net trading position of the home country in world markets, as well as the underlying propensity of the home country to be a net lender or borrower of capital. In other words, the interaction between the permanent structural components in both the current and capital account jointly determine the sustainable real exchange rate.’ [8] Globalization has increased the differential between growth of world trade volumes and growth of world GDP as well; thereby enhance import-export activities of a nation. ‘The Brazilian real displays useful information about the long-run path of other currencies in the region. In terms of volatility dynamics, while most currencies display evidence of time-varying variance, the volatility movements in the foreign exchange market seems to be mainly country specific.’ [9] Evidence of common elements in the foreign exchange markets becomes substantial applications. From a macroeconomic standpoint, the movements have been towards financial integration; from the investors’ standpoints, the implications have in term of the assessment of risk and hedging strategy development. 2.6. Exchange rate expectations One of primary impacts on exchange rate movement is the exchange rate expectations. Speculators have formed expectations about the future exchange rate movements and then will take action to fulfil the impact. If participants in foreign exchange market have expected the future value of domestic currency to reduce, they will sell domestic currency. This phenomenon will increase its supply in the foreign market which then causes a fall in its value. On the other hand, if participants speculate the value of domestic currency to increase, they will buy domestic currency, increasing demand for that currency and bring about an appreciation. ‘The exchange rate expectations are incorporated into a switching cost model via the method of exchange rate pass-through on product-specific and country-specific approach.’[10] Foreign exchange traders shift the demand for a currency in expectation of making profits. These traders’ expectations might be wrong sometimes, and thus they might disturb the foreign exchange market ‘unnecessary’. However, they have to speculate correctly on average; otherwise they would lose their money and close their business. 2.7. Intervention into the foreign exchange market from authorities Government or central bank can intervene into foreign exchange markets. They can exert a significant impact on the value of that country’s currency. Official intervention can happen through the activities of central bank, or directly regulate the foreign exchange market by rules, regulations or laws. For instance, the authority can choose a number non-bank authorized foreign exchange dealers. ‘A disequilibrium in the money market significantly affects the level of the reserves in each country. The impact differs in magnitude from country to country depending on the degree of sterilization and the exchange rate regime.’[11] The central bank can intervene by establish to ‘buy time’ for the participants in the currency market. ‘If inflation is 10 per cent higher in Mexico than in the US, the peso would be expected to depreciate against the dollar by 10 per cent to maintain PPP. However, the success of central bankers in controlling price inflation over the past decade has drastically cut inflation differentials between countries to the extent that PPP has only a minimal impact now on nominal exchange rates.’[12] A government has been challenged by a time consistency phenomenon and commitment in technology that results from uncertainty and fixed cost. It will have to look for its choices to optimize the exchange rate arrangements by depending on past currency movement history for a given set of fiscal conditions. That is why with the same basis, some nations sometimes experience fixed or low inflation and other time confront the floating or high inflation in exchange rates. 3. Conclusion Many determinants have impacts on the currency exchange in the long run. Sometimes, these determinants have mutually influenced on the currency exchange system. These determinants among the markets are pronounced in the long-term, where the short-term movements are usually in line with the long-term adjustments. The effects of these mentioned determinants are not uniform among nations. In fact underlying the movements in price, money and currency exchange rates are mutual and complex. Reference list Al-Salem, H., Ph.D. 2005, ‘The demand for international foreign reserves of energy-exporting countries’, Clark University, 222 pages; AAT 3163350 Chinn, DM Meredith, G 2004, ‘Monetary Policy and Long-Horizon Uncovered Interest Parity’, IMF Staff Papers, Washington, vol.51,no.3, p.409,viewed 12 May 2007 http://edoc.hu-berlin.de/series/sfb-373-papers/2000-44/PDF/44.pdf> Faruqee, H 1995, ‘Long-run determinants of the real exchange rate: A stock-flow perspective’, International Monetary Fund Washington, vol.42,no.1, March, p.80, viewed 12 May 2007 http://www.accessmylibrary.com/coms2/summary_0286-9370615_ITM> Huang, JC Brahmasrene, T 2003, ‘The effect of exchange rate expectations on market share’, Managerial Finance, Patrington, vol.29,no.1, p.55, viewed 12 May 2007 http://www.ingentaconnect.com/content/mcb/009/2003/00000029/00000001/art00003> Ruiz, I. Ph.D. 2006, ‘Essays on the Latin American foreign exchange market’, Western Michigan University, 145 pages; AAT 3243164 Trygubenko, VO 2006, ‘Effect of oil prices and other determinants on the United States dollar effective exchange rate’, Southern Methodist University, 81 pages; AAT 1430298 Uhlfelder, E 2005, ‘Riding the dollar roller coaster For eurozone investors, the weak US currency could provide an opportunity to profit from individual securities,’ Financial Times,London (UK), 4 April, p. 5. Wang, Yongqing, Ph.D. 2005, ‘United States-China commodity trade and the Yuan/dollar real exchange rate’, The University of Wisconsin Milwaukee, 111 pages; AAT 3185620 Woolfolk, M. 2005, ‘Why Dollars’s trend has been downward’, Financial Times. London (UK), 10 January p.12, viewed 12 May 2007 http://search.ft.com/search/article.html?id=050111001040> Page 1 [1] Woolfolk, M 2005, ‘Why Dollars’s trend has been downward’, Financial Times.London (UK) 10 January, p.12 viewed 12 May 2007 http://search.ft.com/search/article.html?id=050111001040> [2] Uhlfelder, E 2005, ‘Riding the dollar roller coaster For eurozone investors, the weak US currency could provide an opportunity to profit from individual securities,’ Financial Times,London (UK), 4 April, p. 5. [3] Faruqee, H 1995,’Long-run determinants of the real exchange rate: A stock-flow perspective’, International Monetary Fund. Washington, vol.42,no.1. March, p.80, viewed 12 May 2007 http://www.accessmylibrary.com/coms2/summary_0286-9370615_ITM> [4] Trygubenko, VO 2006, ‘Effect of oil prices and other determinants on the United States dollar effective exchange rate’, Southern Methodist University, 81 pages; AAT 1430298 [5] Faruqee 1995, p.80 [6] Chinn, DM Meredith, G 2004, ‘Monetary Policy and Long-Horizon Uncovered Interest Parity’, IMF Staff Papers, Washington, vol.51,no.3, p.409,viewed 12 May 2007 http://edoc.hu-berlin.de/series/sfb-373-papers/2000-44/PDF/44.pdf> [7] Wang, Yongqing, Ph.D. 2005, ‘United States-China commodity trade and the Yuan/dollar real exchange rate’, The University of Wisconsin Milwaukee, 111 pages; AAT 3185620 [8] Faruqee 1995, p.80 [9] Ruiz, I. Ph.D. 2006, ‘Essays on the Latin American foreign exchange market’, Western Michigan University, 145 pages; AAT 3243164 [10] Huang, JC Brahmasrene, T 2003, ‘The effect of exchange rate expectations on market share’, Managerial Finance, Patrington, vol.29,no.1, p.55, viewed 12 May 2007 http://www.ingentaconnect.com/content/mcb/009/2003/00000029/00000001/art00003> [11] Al-Salem, H., Ph.D. 2005, ‘The demand for international foreign reserves of energy-exporting countries’, Clark University, 222 pages; AAT 3163350 [12] Woolfolk, 2005

School Safety and the Tragedy at Columbine High School :: Argumentative Persuasive Argument Essays

Unlike most of the country, I knew about Columbine High School on April 19, 1999. I knew that the Columbine Rebels had a good football team, I remembered how they beat Cherry Creek for the 1999 football championship. I knew what Columbine's building was like from when I was inside it in January for a debate tournament. I had friends that went to CHS. We had gone on a trip to Hawaii together to learn about biology. The rest of the country found out about Columbine High School on April 20, 1999. They didn't hear about their football team, the debate tournament they hosted, or my friends, though; they heard about two angry students, Eric Harris and Dylan Klebold, that went on a killing rampage killing 12 other students, a teacher, and themselves. The nation, the media, the killers, my friends, and me all have their own view of what happened that day. Many people tried to understand how something so terrible could happen, while the killers thought that the killings were a wonderful thing , and still other students were trying to comprehend that this tragedy had actually happened so close to home. At 11:19 in the morning of April 19, 1999, Eric Harris and Dylan Klebold stood at the west entrance of Columbine High School preparing for the deadliest shooting in American school history. One of them yelled, "Go! Go!," and then the two pulled out their shotguns and began firing, killing two students almost immediately (Jefferson County 3). Harris and Klebold began moving through the school randomly shooting students, detonating pipe bombs, and yelling about how much fun they were having. While this was happening, Coach Dave Sanders and other heroes were frantically trying to get students out of harm's way. At 11:26, while running past the library warning students of the killers, Sanders was shot by one of the shooters. He made it into a science room where first aid was administered by students. He died several hours later in that same room. The worst killing took place in the library during a span of about eight minutes starting at 11:29. Ten students were killed and twelve others were wounded. After leaving the library, Harris and Klebold wandered around the school in movements that appeared to be "extremely random" (Jefferson County 18). They eventually returned to the library at about 12:08 and killed themselves. In 49 minutes, 14 students were left dead, one teacher was left dying, 23 people were injured, and an entire community's sense of safety and security was shattered.

dickinson and angelou Essay -- essays research papers

Emily Dickinson & Maya Angelou Essay Q. Analyse the presentation of human suffering in the poetry of Maya Angelou & Emily Dickinson. Many of Emily Dickinson’s poems touch on topics dealing with loss and human suffering. While loss and suffering is generally considered a sad or unfortunate thing, Dickinson uses this theme to explain and promote the positive aspects of absence. Throughout many of her poems, one can see clearly that see is an advocate of respecting and accepting the state of being without. Dickinson implies that through these types of losses, one can gain a richer and stronger appreciation for both success and belongings. Poems 2 and 1036 are two that capture the extent of Dickinson’s feelings on loss. By understanding and comparing these two works, it is easy to recognise that Dickinson believes that possessing neither material possessions nor the joy of success are the real keys to happiness. Poem 2 focuses on a battle that could be considered either literal in the sense of war, or more symbolic as it could act as the anthem for any type of loss or failure. Lines 1 and 2 of the poem explain that success or winning is most valued by those who never prevail. Dickinson is saying that loss creates the strongest appreciation for a win. The lines 3 and 4 state: To comprehend a nectar Requires sorest need. This implies that necessity is the only way in which to understand what you want. Next, in the second stanza, Dickinson uses words that...

Abercrombie & Fitch Essay -- History Background Essays

Abercrombie & Fitch In America today, there are many different clothing stores. There are stores setting images for all ages, and styles. The majority of the upper-class stores are setting the American image for the young adult population. Many of the advertisements for these stores are somewhat similar. I have spent the last year and a half working in a clothing store called, â€Å"Abercrombie and Fitch†. Seeing this store change and grow with its image of vintage American clothing, I have found many rhetorical issues. Within this essay I will be discussing the many rhetorical issues of the clothing company â€Å"Abercrombie and Fitch†. Abercrombie and Fitch, a clothing company, that advertises, to the American young adult population, was founded in 1892 by two men; David T. Abercrombie and Ezra Fitch. David T. Abercrombie was born in Baltimore and was a former inventor and taper. Ezra Fitch was a successful lawyer. David convinced Ezra to become his partner in 1892, when the company was founded. By 1904 Abercrombie was the largest outdoor equipment and clothing store in the US. Today A&F is one of the biggest clothing companies, selling the â€Å"all-American† vintage look. When Abercrombie advertises a new season, the company goes all out. Whether it is fall, winter, spring or summer, the advertisements are all promoting the same things. These advertisements are full of either slim or buff young adults, modeling the A&F clothing line. Posters of models are hung all around the store. Abercrombie catalogs are made available to purchase in the store, and there is also the option to receive the catalog in the mail. The shopping bags even have these characteristic models on them. Not only do these magazines, pos... ...son. I realize that when advertising clothes for a company that a company want the image to look good and appealing. I think that A&F has so many problems with their company, because of the people they use as their models. Not just anyone can model for A&F. The standards are very high, which makes becoming an Abercrombie model challenging. I really don’t have a problem with the way A&F advertises their company, but I can see where some people might think that it is wrong. Abercrombie is setting this image of what the look should be for the men and women wearing the clothing. A&F is mainly trying to sell to the young adult era, not the teeny bobber era. Using beautiful people, to set the â€Å"all American† vintage image, season after season is something that is part of the A&F Company. It sets a fun and comfortable look for the young men and women of America today.

Earhquake in Northern Sumatra, Indonesia

On December 26, 2004, mass destruction and devastation was the result of a large earthquake off of the West Coast of Northern Sumatra, Indonesia. The earthquake began in the early morning on Sunday at 7:58:53 AM, and wreaked havoc on thousands in the affected areas. BBC News reported on the earthquake, stating that â€Å"Sunday’s tremor – the fourth largest since 1990 – had a particularly widespread effect because it seems to have taken place just below the surface of the ocean, analysts say† (BBC News). The earthquake had significant effect on the region and the people living in these regions. Not only was the earthquake damaging and devastating, but the quake was also the cause of a correlated tsunami that caused even more damage and destruction to the area. â€Å"This earthquake is the largest event in the world in 40 years, and produced the most devastating tsunami recorded in history† (Lay). â€Å"Coastal communities across South Asia – and more than 4,000 km away in Africa – were swept away and homes engulfed by waves up to 10 m high after the quake created a tsunami that sped across the ocean† (BBC News). The geographic location of the Earthquake in absolute location is 3. 316? North, 95. 854? East; and the relative location of the quake was off the West Coast of Northern Sumatra, which was 155 miles South Southeast of Banda Aceh, Sumatra Indonesia, and 185 miles West of Medan, Sumatra, Indonesia (USGS). The earthquake that shook the West of Northern Sumatra, Indonesia, as well as many other neighboring countries, was of a great 9. 0 magnitude on the Richter scale. â€Å"At the source of the earthquake, the interface between the India plate and the Burma plate dips about 10 degrees to the east-northeast. The subducting plate dips more steeply at greater depths†(USGS). The quake occurred when the Earth’s crust, a 1,200 km segment of the crust, shifted beneath the Indian Ocean, as far as 10 to 20 meters below (Marshall). As the crust shifted and the quake went into motion, a substantial amount of energy was released. Energy released by this overwhelming earthquake was an â€Å"estimated 20X10^17 Joules, or 475,000 kilotons (475 megatons) of TNT, or the equivalent of 23,000 Nagasaki bombs† (Marshall). All of this stored elastic energy that was released by the earthquake, in turn initiated the† uplift of the seafloor and the displacement of billions of gallons of seawater† (Marshall). These events lead to a massive tsunami. â€Å"Over a period of 10 hours, the tsunami triggered by the quake struck the coasts of over 12 countries† (Marshall). â€Å"The region where the great earthquake occurred on 26 December 2004, marks the seismic boundary formed by the movement of the Indo-Australian plate as it collides with the Burma subplate, which is part of the Eurasian plate† (Pararas-Carayannis). â€Å"For millions of years the India tectonic plate has drifted and moved in a north/northeast direction, colliding with the Eurasian tectonic plate and forming the Himalayan Mountains. As a result of such migration and collision with both the Eurasian and the Australian tectonic plates, the Indian plate’s eastern boundary is a diffuse zone of seismicity and deformation, characterized by the extensive faulting and numerous large earthquakes† (Pararas-Carayannis). â€Å"Previous major earthquakes have occurred further north, in the Andaman Sea and further South along the Sumatra, Java and Sunda section of one of the earth’s greatest fault zones, a subduction zone known as the Sunda Trench. Slippage and plate subduction make this region highly seismic† (Pararas-Carayannis). In addition to the Sunda Trench, the Sumatra Fault is responsible for seismic activity on the Island of Sumatra. This is a strike-slip type of fault which extends along the entire length of the island† (Pararas-Carayannis). East of northwest Sumatra, â€Å"a divergent plate boundary separates the Burma plate from the Sunda plate† (Pararas-Carayannis). â€Å"More specifically, in the region off the west coast of northern Sumatra, the India plate is moving in a northeastward direction at about 5 to 5. 5 cm per year relative to the Burma plate† (Pararas-Carayannis). The region where the earthquake occurred –and particularly the Andaman Sea- is a very active seismic area. Also Sumatra is in the center of one of the world’s most seismically active regions. Earthquakes with magnitude greater than 8 struck Sumatra in 1797, 1833, and 1861† (Pararas-Carayannis). It is obvious that Indonesia is an area that is highly susceptible to earthquakes, because of the shifts and movements of the tectonic plates that Indonesia lies on. â€Å"Indonesia is surrounded by four major tectonic plates, the Pacific, the Eurasian, the Australian, and the Philippine plates. All these major tectonic plates and their subplates are presently active. Major earthquakes and tsunamis can be expected in the semi-enclosed seas and along the Indian Ocean side of Indonesia. Major earthquakes in the semi-enclosed seas can generate destructive local tsunamis in the Sulu, Banda, and Java Seas. Major earthquakes along the Sunda Trench can generate tsunamis that can be destructive not only in Indonesia but to other countries bordering the Indian Ocean† (Pararas-Carayannis). The major tectonic feature in the region is the Sunda Arc that extends approximately 5,600 km between the Andaman Islands in the northwest and the Banda Arc in the east. The Sunda Arc consists of three primary segments; the Sumatra segment, the Sunda Strait Segment and the Java Segment. These locations represent the area of greatest seismic exposure†¦Ã¢â‚¬  (Pararas-Carayannis). â€Å"In the immediate vicinity off Northern Sumatra, most of the stress and energy that had accumulated were released by the crustal movement that caused the 26 December 2004 earthquake. The subduction of the India tectonic plate underneath the Burma plate cause upward thrusting of an extensive block and generated the destructive tsunami† (Pararas-Carayannis). As the Burma plate â€Å"snapped upward, it was a huge geologic event. The dislocation of the boundary between the Indian and Burma plates took place over a length of 745 miles and within three days had set off 69 aftershocks† (Elliot). â€Å"The aftersocks represent nature’s way of restoring stability and temporary equilibrium. It is unlikely that a destructive tsunami will occur again soon in the same region, however caution is advised for coastal residents in Northern Sumatra and in the Nicobar and Andaman Islands. If an afterschock is strong enough and it is strongly felt, evacuation to higher elevation is advised. In fact, strong shaking of the ground is nature’s warning that a tsunami may be imminent† (Pararas-Carayannis). The natural disasters also create natural warning signs that more damage may be upcoming. The aftershocks suggest that the earthquake rupture had a maximum length of 1200—1300 km parallel to the Sunda trench and a width of over 100 km perpendicular to the earthquake source† (USGS). Many things can be taken into account, analyzed, and hopefully used in the future to reduce the number of casualties and losses as a result of an earthquake of such magnitude. The importance of this earthquake and its effects on the communities devastated by this earthquake are many. â€Å"According to the latest official reports (Ministry of Health) 166,320 people were killed, 127,774 are still missing and 655,000 people were displaced in Northern Sumatra. A total of 110 bridges were destroyed, 5 seaports and 2 airports sustained considerable damage, and 82% of all roads were severely damaged. The death toll is expected to rise† (Pararas-Carayannis). â€Å"There were many lessons already learned from this tragic event in Southeast Asia. Many more lessons will be learned in the near future as this tragedy unfolds and reveals the many failures to value and protect human life in this neglected region of the world. Indeed a bitter lesson was already learned that great earthquakes and destructive tsunamis do occur in this region† (Pararas-Carayannis). The communities of people living in this region that is highly susceptible to earthquakes and tsunamis could learn important information about the somewhat safer areas to reside, or safety techniques to carry out and be aware of while in the midst of a natural disaster. â€Å"The magnitude of the tsunami disaster could have been mitigated with a proper disaster preparedness plan and a functioning early warning system† (Pararas-Carayannis). â€Å"However the strong shaking by the earthquake should have been nature’s warning for local residents that a tsunami was imminent and they could have run to higher ground to save their lives. A simple program of public education and awareness of the potential hazard could have saved many lives in the immediate area† (Pararas-Carayannis). It would be imagined after having at least four earthquakes of 9. 0 magnitude or greater in the region, that residents, public officials, and even tourists could easily find or allowed , much less given, information needed to promote awareness for the possible catastrophes and preventive methods for any type of damage that can be sustained and anticipated. For the more distant coastlines of India, Shri-Lanka, and other locations in the Bay of Bengal and the Indian Ocean, there was ample time to issue a warning –if only an early warning system existed for this region of the world and if there was a way of communicating the information to the coastal residents of threatened areas. No such warning system exists at the present time –the lack of disaster awareness or preparedness is appalling. A simple educational program on hazard awareness could have prevented the extensive losses of lives –particularly of children. One third of those that perished were children† (Pararas-Carayannis). The severity of damages resulting from the earthquake and subsequent tsunami is devastating, and what makes this natural disaster even more tragic is to know that some preventive measures could have been taken. There are adequate instruments and warning systems that have been developed and are currently being used currently in other locations around the world where devices sufficiently predict and send signal out for the warning of tsunamis. It is often because of insufficient funds or simple neglect for an organized plan of action to take in cases of emergencies as such. â€Å"India and Shri-Lanka are not members of the International Warning System in the Pacific and they have not shown interest in joining any regional early warning systems. An erroneous belief has persisted that tsunamis do not occur frequently enough to warrantee participation into a regional tsunami warning system. Local government authorities in the region did not even have a plan for disseminating warning information to threatened coastlines –even if a warning had been provided. There was not even a basic educational plan for disaster preparedness. It should be obvious that such a program is necessary to prevent similar tragedies in the future† (Pararas-Carayannis). â€Å"In Sri-Lanka alone, more than one million people are displaced and aid workers are under pressure to ensure they have clean water and sanitation to prevent an outbreak of disease† (BBC News). This earthquake is significantly important to the people affected in the surrounding communities, as well as the geologic setting of this disaster. â€Å"Five main reasons why this disaster was so deadly: 1) High population density on low-lying coastal areas of the Indian Ocean, 2) Short distance from tsunami source to populated low lying coasts, leaving little time for warning, 3) No tsunami warning system in the Indian Ocean, 4)Poor and developing countries with vulnerable infrastructure and minimal disaster preparedness, 5) Little public awareness of tsunami hazard† (Marshall). It is impossible to be able to prevent natural disasters from occurring, but there are some measures that can be taken to help prevent the cause of some injuries and deaths. The measures that can be taken to prevent more harm than already caused may seem insignificant in the grand scheme of the disaster, yet the smallest preventive measures and knowledge to be aware of certain signals to promote safety awareness, such as knowing when to move to higher ground after initial shaking or some basic understanding of simple, but possibly life-saving medical treatments. It is apparent that Indonesia and surrounding countries are vulnerable to earthquakes with possible tsunamis that may cause mass destruction. Residents in Indonesia and surrounding countries should be informed and aware of the potential disaster zones they live in, in efforts to take some sort of preventive procedures such as building more secure homes on more stable location, to keep medical aid kits stocked and easily accessible, and emergency plans of action if disaster strikes and a family is separated for example. The damage resulting from the 2004 Sumatra, Indonesia Earthquake was remarkably widespread, causing extensive devastation to the land, buildings, and communities including hundreds of thousands deaths and injuries across thousands of kilometers It is also obvious that Indonesia and majority of the adjacent countries need to significantly work to create a disaster plan, educational programs to make people knowledgeable about nature’s hazards, and to adapt a system to detect and transmit information and messages for early warning signs. The great amount of destruction and loss of human life due to these kinds of natural hazards cannot be prevented, but the amount of devastation suffered would be substantially less if these precautions were taken advantage of and actually put into effect.

Sanitation Facilities

Sanitation generally refers to the provision of facilities and services for the safe disposal of human urine and faeces. An improved sanitation facility is one that hygienically separates human excreta from human contact. Improved sanitation generally involves physically closer facilities, less waiting time, and safer disposal of excreta. Poor sanitation is responsible for one of the heaviest existing disease burdens worldwide. The diseases associated with poor sanitation and unsafe water account for about 10% of the global burden of disease.The most common disease of poor health associated with poor sanitation is a diarrhoeal disease. Globally, about 1. 7 million people die every year from diarrhoeal diseases, and 90% are children under 5 years of age, mostly in developing countries. 88% percent of cases of diarrhoeal diseases worldwide are attributable to unsafe water, inadequate sanitation, and poor hygiene. In this essay I will analyse the economic benefits of sanitation, the eco nomic disadvantages, the link between a rise in GDP and the access to sanitation in regions all over the world including Asia, Africa, Europe and North America.I will do this by analysing data set curves which I have obtained from a various amount of sources such as national journals, reports and articles relating to this subject. I will be using data sets from the UNEP and carrying out multiple regressions. Finally I will be looking at the Environmental Kuznets model to see whether it applies to this relationship between economic growth and the access to sanitation.According to 2010 figures, approximately 2 billion people do not use improved sanitation facilities, two-thirds of which live in Asia and sub-Saharan Africa. By looking at Figure 1 we can see that it is in the developed regions such as North America and parts of Europe where people have a good access to sanitation, while on the other hand it is the mostly the developing regions such as Asia and sub-Saharan Africa with th e poor access to sanitation. This figure already makes the relationship between economic development and access to sanitation vaguely clear.The Asian and African regions would be a good place to have a look at this relationship even more closely; this is because over the past few decades, countries in the Asian regions such as China have undergone a huge advance in economic growth while on the other hand there has been little or non-existent economic growth in the African regions. Asia is the world's fastest growing economic region. China is the largest economy in Asia and the second largest economy in the world.Moreover, Asia is the site of some of the world's longest economic booms and by looking at Figure 2 it is evident to see that over the past few decades there has been a dramatic rise in the GDP of Asia but very little in the GDP of Africa. Now by looking at Figure 3 which is a graph showing the level of improved drinking/safe water coverage, improved as in drinking-water sou rces such as piped water to the house or yard, public taps and rainwater collection. Improved sanitation facilities including flush or pour-flush toilets connected to a piped sewer system.By looking at this we can see that in Asia there has also been a dramatic rise in the access to unpolluted water which is a positive relation to the GDP. I gathered the data which is on Figures 2 and 3 onto excel and carried out a regression analysis for the Asian region to help understand to what extent the strength in the relationship between the dependent variable (GDP) and the independent variable (Sanitation) which is shown on Figure 4. By looking at the R squared we can see that this model has a strong explanatory power as it is very close to 1.According to the coefficient we can also see that every time the GDP increases by $50billion, there is an increase of almost 3. 4 million people with improved access to sanitation. Poor sanitation results in an economic loss as it is linked with the co sts of treatment to sanitation related diseases and income which is lost through productivity. Furthermore poor sanitation can also lead to a loss of time and effort as a result of poor facilities, lower quality of products due to poor quality of water and of course a dramatically reduced income coming from tourism as there is a great risk of disease.According to various studies from the WHO (World Health Organisation), there has been evidence that there are huge economic costs which arise from the poor sanitation. At a global level there is a loss of around $40billion per year due to poor sanitation; looking at South Asia alone we can see that in places such as Indonesia, Vietnam and Cambodia there is a loss of around $10billion a year, the key impacts of this came about from poor health and tourism, poor sanitation can affect everyone but especially effects those who are poor(Hutton, 2007). Several studies have also been conducted to estimate the economic costs associated with poo r sanitation. In Ghana and Pakistan, for example, the indirect effect on child mortality of environmental risk has added more than 40% to the cost of directly caused child mortality. If one took into account the effect of such malnutrition, they will be able to see the huge impact on impairing school performance and delayed entry into the labour market, the cost would double to around 10% of the GDP.Improvement to sanitation can bring various types of benefits to an economy, one of which are the direct benefits of preventing or avoiding illnesses as there would be no money spent on healthcare treating patients with diseases due to sanitation. There will also be indirect benefits such as a decrease in the amount of work days absent being sick and longer life, and finally and very importantly there will be a lot of time saved. As we have seen already, sanitation is also important when it comes to economic development.In Africa many young women are dying every year as they are the ones which carry the polluted water, they are also then forced to drop out of education during puberty years in order to look after their sick children as a result of the polluted water, this means that women are not able to be educated and they can even find it difficult to join the labour supply. Every 10% raise in female literacy (due to increased attendance at school) a nation’s economy can grow by around 0.3% (Dollar et al, 1999). According to Hutton (2008) there could be an estimated that annual investments of around $27million in Tanzania and Vietnam would result in benefits of around $70million for the health sector alone. Hutton also estimated that there is a potential to save around $6billion in many parts of Asia if improved sanitation can be introduced. Overall Hutton stated that there are many costs and benefits available however the benefits still do overpower the costs.Moreover, the Disease Control Priorities Project recently found that hygiene promotion to prevent diarrhoea was the most cost-effective health intervention in the world at only $3. 35 per DALY loss averted, with sanitation promotion following closely behind at just $11. 15 per DALY loss averted. This is to say that economic growth and sanitation for sure have a strong relationship within one another; this can be shown on the environmental Kuznets curve.The Environmental Kuznets Curve (EKC) is a relationship between income and pollution which is hypothesized to have an inverted U-shape. The idea of an inverted U-shaped Kuznets curve stems from the Kuznets' work in income equality (Kuznets, 1955). The EKC hypothesis states that as income increases pollution goes up initially but after certain time pollution eventually declines. The point at which pollution level is the highest is called a turning point. This then evidently applies to developing countries as they are the ones which have the higher levels of income.Looking at Figure 5 we can see that in Europe up to the year 2000 w ater pollution was on a rise, however sometime in the year 2000 there was a turning point where the pollution of water started to decline. According to the Kuznets curve, in the year 2000 the economies within Europe produced a certain GDP and a certain GDP per capita which led to the decline of the water pollution. According to Figure 6 in the year 2000 the turning point on the Kuznets curve was at $18000 per capita, this is the level of GDP per capita needed in the European region in order to reverse the trend of water pollution.Looking back at Figure 5 we can also see that in the North American region up till 1998 there was an increase of water pollution however sometime in 1998, just like in Europe, people’s incomes were growing and GDP per capita was on a rise. Looking at Figure 6, according to the EKC, GDP per capita in North America will be at $36000 which is where there will be a turning point. Both the EKC’s for Europe and for North America are shown on Figure 7. This analysis clearly tells us that the relationship between the two is dependable on the economic stages of development.In the other regions around the world there will not be a turning point on the EKC as people do not earn enough to have this effect, good sanitation facilities are the main way in which water pollution can decrease, more developed economies around the world have the funds to invest in good sanitation, however as we have discussed, the less developed countries do not have access to these sanitation facilities therefore their economies are heavily impacted and the funds for the technology needed to provide improved sanitation are hard to come by, therefore these countries are on the upwards slope of the EKCmeaning they have not yet achieved the GDP per capita in order to have a turning point. I have aimed to show the various ways in which sanitation is fundamental to good health and also economic development. Given the data I have analysed, I can surely state tha t the investment in improved sanitation would be beneficial to an economy. Ultimately, I can say that there is a strong relationship in economic growth and access to sanitation and I can also say that the EKC does apply to the water pollution we have in the real world. Finally I can also say that the level of the turning point also depends on the stages of economic development.